The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
/?£
ESTABLISHED
10J&9
JUL
agISTf
ISTRATION
Volume
190
Number 5862
EDITORIAL
New York
:
->r
As
We See It
expressed the opinion that inflation will be
issuek
in the
1960
By WILLIAM M.
one
national elections. The
so
often
advocated
of all songs was
the reduction
with
upon
sentiments
the Voters
were
from the rallies and doubts bull market will
return until
come
unemployment
less
much
favor,
the part
on
are
he' thinks.
of high officials
accompanied by the
V
news
running to $12.5 billion. They
related to
mittee
report
on
Growth," which
and cites the
avoid
are
count
just closed
com¬
good things that may be ours if
[See page. 12 for text of
inflation.
After 10 years or
that we have been
can
be
by the
favorable
no
that be
impression
upon
are
making
so
re¬
were
sick; the devil
monk would,be/'
years
certain to be all too
cines
in
quantity
ready to take patent medi¬
the advice of quacks or
ditioned
rallies
W. M. B.
Berger
this
DEALERS
on
so
in
*
Address
SECURITIES
NOW IN
afforded
period, such
as
American
would
was
hardly
lowered
more
foreigners is due to
steel
than
.17
move
Municipal
complete picture of i
sues
now
tons
10%
of
Section,
starting
a
—the
value of
the gold outflow has started again at
a
almost
rate
heavy as last year's.
Is this a fatal
Does it mean that the dollar is becom-
as
hemorrhage?
Continued
on
Burnham
Company
and
5, N.Y.
•
DI 4-1400
Inquiries Invited
California
Bond
Dept.
Teletype: NY 1-708
Active
Markets
Net
To
Dealers,
T. L.Watson & Co.
ESTABLISHED
Banks
New York
page
28
Public Housing Agency
Bonds and Notes
Exchange
Brokers
New York Stock
Exchange
American
Exchange
Block
(Rights Expiring August 7,
^
Inquiries Invited
Commission Orders
BROAD
STREET
NEW YORK 4, N. Y.
^GttthlVeAt COMPANY
HIRES TO
Executed On
All
•
PERTH AMBOY
current
rights
at
the
market.
Ottawa, Winnipeg, Calgary, Vancouver,
Victoria
and
MONTREAL AND TORONTO
Goodbody
&
115 BROADWAY
NEW YORK
1 NORTH
for
California
Municipals
Halifax
Municipal Bond
Domduox Securities
Grpokatioti
Co.
MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT
Chase Manhattan
1959)
CANADIAN DEPARTMENT
DIRECT
the
BANK
Direct private wires to Toronto,
Montreal,
Teletype NY 1-2270
25
DEPARTMENT
Correspondent—Pershing & Co.
We offer to buy these
Canadian Exchanges
Stock
Southern
Im perial Bank of Canada
CANADIAN
1832
Members
on
Securities
BOND
Maintained
and
SECURITIES
Co.
San Diego, Santa Ana, Santa Monica
OF NEW YORK
TELETYPE NY 1-22*2
Distributor
DALLAS
&
Encino, Glendale, Hollywood. Long Beach,
Pasadena, Pomona, Redlands, Riverside,
AMERICAN STOCK EXCHANGES
15 BROAD STREET, NEW YORK
CABLE: COBUKNHAM
FIRST
on
State, Municipal
38.
page
Offices in Claremont, Corona del Mar,
MEMBERS NEW YOSK A.NO
Securities
It
than $2 billion
annual
income of
more
combined
Associate Member American Stock Exchange
THE FIRST NATIONAL CITY BANK
Investment
the
largest
SECURITIES
BANK
s
in
the
nearly 400,000 American families.
Now, after a respite of a few months,
Peter L. Bernstein
California
CORN EXCHANGE
•
gold
was
history.
had
Members Pacific Coast
Dealer
gold
out of every
Members New York Stock Exchange
I NVESTME NT
CHEMICAL"
Underwriter
It
it
was
623 So. Hope Street, Los Angeles 17,
of
ST., IS. V.
total
our
one
monetary
whole free world.
Lester, Ryons
and
DISTRIBUTORS
bond department
of
as
Yet, this
and investors in corporate
registered with the SEC and poten¬
"Securities in Registration"
IIAnovtr 2-3700
30 BROAD
in the water
loss of gold we have ever sustained
in any one year of our
by Mr. Berger before Denver Society of Security Analysts.
UNDERWRITERS
Securities,
tellchonc;
pours
and
Housing,
State and
industry
aboard.
I. S. Government,
Public
helping
are
liquidity.
stock and more than
during
November '57 to
26
cur¬
Two normal size freight trains could
carry it with ease.
A large freighter
con¬
page
international
The
market
on
of
excess
REGISTRATION—Underwriters, dealers
a
tial undertakings in our
in
bond
our
soft currency, he
that much tonnage in less than three
minutes out of an eight-hour day.
been
being mentally
flight from
a
In 1958, the United States lost more than
2,500 tons of
gold to foreign countries.
It doesn't sound like much.
realizing
has
fav¬
a
Concludes that main
of payments to
restore
to understand that the
as
the
Continued
securities
are
not
trend
June '58, were merely rallies against
this
downward
trend, rather than a
return
to
"normal."
Perhaps this reluctance to recognize that we
31
page
to
long-term
on
Continued
Very few bank¬
attributed
the
down, and not
ago
ticularly encouraging, the rank and file may have
particular yearning for the cloth but they are
he
can
a
no
excess
to
seem
would
that
cynic
remarked. When unemploy¬
large, and the economic outlook not par¬
many
ment is
a
our
a
present gold stock is far in
our
Most errors in the management of
bond accounts in the postwar
period
year
indication of
make the dollar
or
of proof on the "bears," and the
strange lingering feeling persists that
it just can't happen.
"They" can't
let it happen.
earlier, when recession and unemployment
uppermost in the minds of so many. "The
devil is
of
a
of
LA SALLE ST.
CHICAGO
Associate Member of American Stock Exch.
40
-
imports
still have
we
capital and government transactions which
to be discovering
bear market for bonds during
a
no
rently required Reserve holdings.
cause
our
Denying that gold outflow could threaten
den
a more
case
in
Points out
Believes there is
maintains
unwarranted, since it is in
temporary factors; while
balance, higher in 1958 than in four of last
credit structure
disagree with this state¬
ment, but there seems to have been,
and there still seems to
be, remark¬
able persistence in
placing the bur¬
we
the rank and file of
the voters than would have been the
or
finally
we
ers
doubt that all these pronounce¬
powers
so
the postwar period.
'
There
10 years.
the dollar.
as
port.—Ed.]
ments
Until bonds be¬
exports is
on
abnormally high.
orable trade
better inflation
of the dangers of inflation
warns
not
are
liquidity lessens; (3) flexible and leveraged,
(4) cognizant that "loss" includes money that could
have been earned
by better management.
and
likewise closely
'"Price Stability for Economic
debt declines.
*
can be
taken, to be.ready for the bond
market low to lengthen
maturities; (2) a true reserve ac¬
news )
report of the so-called Nixon
a
to
come
or
our
for which losses
.
national deficit in the fiscal
year
a
These
(if it is
a
the decline in
good part based
hedge than stocks, Mr. Berger be¬
lieves bank bond accounts should be:
(1) cleaned out
and reconstructed
during 1959-60 excellent earning years,
looked
now
*,
^to.
when the keynote
private savings expand
Macauley, Inc., Investment Counsel
Mr. Bernstein urges realistic conclusions be
applied
the gold question. Maintains the
prevalent concern over\
Mr.
the stimulation of recovery and
in
Executive Vice-President
Bernstein
BERGER*
Berger's chiding analysis of and advice to bankers
who know
investing rather than managing indicates his
unswerving interlst in bank bond portfolios. The former
banker deplores failure to discern the bear
market trend
expenditures that
year
v
v
of
last
Copy
a
By PETER L. BERNSTEIN
President, Centennial Fund, Inc., Denver, Colo.
ready to support vigorous action, to prevent infla¬
excessive
B.
Cents
The Gold Rush of 1959
In Bonds Will Continue
President feels that the American;
people are now
tion. The sort of
Price 50
The Bear Market
Both the President and the Vice-President have
of the
7, N. Y., Thursday, July 9, 1959
Department
IBmtk of Atncrt r n
^NATIONAL I'vjVot ASSOCIATION'
Exchange Place, New York S, N. Y.
Tel. WHitehall 4-8161
Tele. NY 1-702-3
300 MONTGOMERY STREET
SAN FRANCISCO 20, CALIFORNIA
I
Financial Chronicle
The Commercial and
.
.
.
Thursday; July 9, 1959
(102)
2
The Security
Brokers, Dealers only
For Banks,
This Week's
I Like Best
the abil¬
ity of our large and expe¬
rienced trading department
to cover an extremely
broad
range
of contacts.
for favoring
participate and give their reasons
We_take pride in
It
will
wide
and
powerful
rocket
engines, faster airplanes
and spaceships, improved automo¬
biles, safer, purer food processing
Over-the-Counter
your
problems.
—i
great
concern
o
our
of
American Stock
WOrth 4-2300
im¬
to
proving the
simple ameni¬
Established 1020
Associate Member
120 Broadway,
sur¬
very
vival
Exchange
of
ties
New York 5 Teletype NY 1-40
d
every-
1 i f e,
ay
demand better
From
BOSTON
•
CHICAGO
metals.
PHI'jADELPHIA
•
SAN FRANCISCO
jet and rocket
engines capa¬
ble
of
using
Cities
Wires to Principal
Private
May
C.
Earic
tremendously
powerful fuels our scientists have
already developed, to "permanent"
razor
blades, the key is better
WEINBERG,
S.
metals.
GROSSMAN
& CO.
Y.
N.
Security
Render
continued
Securities
Exchange Place. New York 5
Phone:
decade
of
Bureau
WHitehall 3-7830
titanium
the
toughest problem facing workers
in rare metals, that of obtaining
a
product
of
extremely
high
purity, the Oremet scientists soon
came
up with
a revolutionary—
Trading Interest In
highly successful
and
melting process. With
American Furniture
this process and a
Bassett Furniture Industries
Commonwealth Natural Gas
the help of
strong titanium
market, the company got off to
auspicious start and was soon
making
money.
This,
together
with
a
-strong
stock
market,
of
LYNCHBURG, YA.
Wire
Private
to
City
York
New
to
stock
market,
the stock slid back to
Shelton
AVONDALE
suffered
By
MILLS
by
plished
will
to
contract
against
stocks.
asset
other
Priced
textile
favored
at
Electric
liquid
near
book value.
and half its
Exceptional investment calibre
conium
tions
accom¬
ingots
of
feat
a
Westinghouse
supply
worth
$4,000,000
period. With
grief
young company
over
a
of
zir¬
month
12
capacity opera¬
near
thereby assured for the near
future,
even
though
at
low
a
margin of profit, Mr. Shelton be¬
stock
for
income
($1.20
per
gan
year) and capital appreciation.
request
STRAUSS, GINBERG
&
'
'
«
115
*
•
Broadway, New York 6
Telephone:
Teletype:
BArclay
NY
7-7630
1-3636
deal
of 1958 he had negotiated
with
the,
full
Ladish
Co.,
a
of
advantage
to
subsidiary,
the
and
wholly-
Northwest
bought 500,000 shares
of Oregon Met stock
directly from
Company for $1,000,000 cash,
agreed,to
marketing
serve
agent.
Oregon Met as
In
this
Inc.
of
Yamaichi Securities Co., Ltd.
Tokyo, Japan
&
Brokers
Investment Bankers
111 Broadway,N.Y.
6 COrtlandt 7-5680
standing
trans¬
action the Ladish Co. also received
of
able
take
to
favorable
any
STOCKS
0
0
If you
businessman
flight
top
salesman
time
—
and
—
leading
vigorously
a
financially strong young company
in
of
science;
easily
may
field
promising
a
frontier
the
steal
the
on
field
a
0
0
home for certain of your
0
0
? INACTIVE ISSUES
0
in
adjustable
0
worker
the
speed of this drill
You
bit.
ing
the
two
drills for
to
en¬
change
the
without
remov¬
actually
obtain
the price
0
makes the most
of
line
available.
Principal
ice can
0
0
help.
0
■*
^ ALBERT J. CAPLAN & CO.
0
\
Members: Fhfla.-Botfo.
Sfode Exch.
Z0
0
{4 >5U LOCUST STREET, FHILA. 2, PENNA. •aA
Tool
was
company
reasonably priced,
complete
0
offerings.
Opportunities Unlimited
IN JAPAN
for
Write
our
iDigest, and
Monthly
Stock
other reportspretty clear
picture of the Japanese
economy as a whole.
our
that give you a
of one.
The
1946.
in
Perhaps
0
s&me-
item
Electric
Portable
formed
submit your
today. This revo¬
patented
and
power
tools
products
are
Nomura Securities Co.,
Telephone:
This
is
not
orders
BOwling
an
offer
Ltd.
York 6, N. Y.
61 Broadway, New
or
Green 9-0187
solicitation for
securities
for any particular
retailers.
large
The
limelight
next
low
are
shown
re¬
Recorded
be¬
has
Company
for the
sells
also
and
SHOP1VIATE
and
use.
has two lines, PET
The Company
to
industrial
and
shop
home,
that markable
from electronics and produce
growth.
share earnings figures
per
past six years:
speculative favorites. It is
1954
and
1955
tidy
1956
0.50
profit sufficient, perhaps, even to
1957
0.73
the
,,1958
at the
1959
year's
a
can't find a
drills,
sander-polishers,
paint
extremely able< sprayers, grinders and saws for
an
scientist who is at the same
a
INSURANCE
LIFE
short, here we have a unique
In
combination of
whose
company "
butter"
business
"bread
provides
dividend
justify
a
riot
distant future, and
too
small
time
same
research
finance
in
extensive
development-which
and
a
Price
now
to
a
day could pull the lever that
releases
d
Affiliate
impact
electric
The only two-speed,
ables
engineer.
any
n e
of New York,
one-half the
built
with
lutionary
technical developments it manages
of which the Ladish Co.'s
o w
strong:
financially
be
Cudahy, Wisconsin, by the terms
Pacific Co.,
CO., INC.
of
long range basis, and by Janu¬
ary
on
means
developing sales .and markets on
a
Memorandum
exploring various
write
Yamaichi
0
only
The
(3)
finances
cash and
ex¬
giants.
had
incredible
the
landing for his
Unusual situation underpri
he
or
Securities Company
This machine
at
chuck drill made
cellent. meaning that the company
titanium
the
September
of
one
■
credit
and
lars,
break in
however,
costly
very
only
is
of
quickly
the
Call
a
dol¬
the nuclear reactor metal, thereby
escaping
by
is
this
unusually
are
shifted the
company gears land by mid 1957
was
concentrating on zirconium,
Mr.
STOCKS
For current information
industry.
the
(2)
equivalent exceeds a million
$2.
Having foreseen this
the" titanium
market,
>
branch offices
0
in
infant company,
For an
the
price
the
and
to our
JAPANESE
non-portable
to be a major first
appears
saws,
wrench
close at hand.
high of $4 in the Spring
Then came the break in
1957.
Direct wires
the option of port¬
with
retailing
UP-16,
significant — and
profitable—developments possibly
a
both the titanium market and
TWX LY 77
-—5-2527—
LD 39
of SI
Mobile, Ala.
■
price of competitive,
highly
manv
initial offering price
from the
up
STRADER and COMPANY, Inc.
a
—
tested
be
to
And
Met.
•
the price of the stock in
then very thin local market
pushed
the
enthusiasts
leading
torque. By simplifying design and
rocket
engine
manufacturer
is
engineering and the elimination
a new tungsten alloy recently de¬
veloped by Oremet. If successful, of excess parts, PET has marketed
it could make possible extensive a tool retailing for 10%
to 15%
use
of some of the highly potent
less than standard models, while
new fuels recently developed, and
easier and
could result in a substantial in¬ being • immeasurably
crease
in
business
for
Oregon cheaper to repair.
an
Life Insurance Co. of Va.
cast
patented
manufacturers.
Soon
vacuum
—
>
ability ever offered.
to
way
a
parts
aircraft
saw
arm
with very considerable
potential, according to preliminary
indications of extensive investiga¬
tions being conducted by leading
to
themselves
Addressing
were
process
in
La bora tor y
Mines
work-shop
Home
triple last year's provides all the flexibility of a
portable saw with all the cuts and
researchers also accuracy of a radial saw. Model
have
Albany, Oregon.
Teletype No. NY 1-2762
year
Oregon
Met
discovered
his
the staff of the U. S.
as
earnings
30, 1959 should
earnings.
pursuing for
been
had
associates
Met
and
Shelton,
Stephen
dent,
a
40
fiscal
incorporated
work which its Presi¬
business the
for Banks and Dealers
NY 1-1557
La.- Birmingham, All
will
free. Earnings for the
which will end Sept.
nearly tax
an
as
HAnover 2-0700
.
with better metals.
Organized in 1956, Oregon
York 6, N, Y.
New Orleans,
Electric Tool
Exchange
19 Rector St., New
O'Rourke•& Co., Chicago, ill.
I'.
Portable
of valves gnd
1958
whereas
methods and processes
Dealers Ass'n
Unlisted
all
in
better
ducing
brokerage service
a
and pro¬
metals, and better
of working
developing
is
business
INC.
Members
only
Metallurgical's
Oregon
.1.
York Stock Exchange
American Stock
Members
appreciate the forthcoming
Fall
1959 addition to the line of
Portable Electric Tool.1 Many of
as; jet
engine assemblies, Ladish us have struggled for fifteen min¬
itself
is
an
important user of
utes
unscrewing a jammed saw
titanking and other rare metals blade and attachment from our
and alloys. This, plus what Ladish
power
tools, perl aps merely to
has arranged as sales agent and
drill a few holes. Then we have to
the Oregon Met staff themselves
remove the drill and
later, after
have generated, has taken up the
relocating misplaced screws, re¬
slack left by the successful com¬
attach
the
saw
or
sander etc
pletion of the Westinghouse con¬ The answer to this ever-vexing
tract in September of last year.
problem
is
PET's
new
trade
So effectively has this been ac¬
market "TWISTLOCK." A patent
complished, in fact, that Oremet's
is pending on this item which, by
earnings of $112,827, or nearly
means of a snap-lock device,
en¬
$.07 a share for the six months
ables the long suffering
"do-itended March 31, 1959, exceeded
yourself"
addict
to
instantly
earnings of $98,000, or only $.06
change tools on his power equip¬
for the entire year ended Sept. 30,
ment.
1958—this in spite of the fact
Other recent Portable
Electric
lhat earnings for the six months
Tool exclusives include:
just ended were after taxes of
(1) The only stationary radial
$115,542,
or
$.07
per
share
,
assurance
Corporation
Members New
O'ROURKE
JOHN P.
fit¬
tings for sanitary districts and the
food processing industry, as well
all of us,
ranging from
Hew York Hanseatic
Steiner, Rouse & Co.
leading
world's
the
of
one
manufacturers
f
e r s
to
As
d e e d,
n
matt
Co., Chicago, 111. (Page 2)
exercised,
50%
just
Quoted
Sold
Bought
John P.
—
O'PiOurke &
O'Rourke, of J. P.
of Oregon
Met's
a u t h o r i z e d
2,500,000 shares.
(Shares presently issued and out¬
standing total 1,633,000.)
missiles, more
Electric Tool
give Ladish 1,250,000 shares,
would
or
2)
(Page
Portable
on an
at $2 a
shares
share, which options, if
Oregon Metallurgical Corporation
Better
1963
in
750,000
additional
May & Co., Portland, Oregon
of our
private wire service
prompt service in
advantage
.
expiring
options
C. MAY
EARLE
to take
nation-
you
pay
Ore.
intended to be, nor
offer to Bell the eecuiities discussed.)
they to be regarded, aB an
May & Co., Portland,,
C. May, of
(The articles contained in this forum are not
tare
Louisiana Securities
Corp.—Earle
Oregon Metallurgical
particular security.
a
Alabama &
Their Selections
which, each week, a different group of experts
§■ the investment and advisory held from all sections of the country
A continuous forum in
Try "HANSEATIC"
Participants and
Forum
real "jack pot."
Counter
share.
this
at
active
West
market,
This
is
a
writing,
Coast
is
in
about
$3
not
accounts.
as
yet
per
speculative stock
suitable for individuals, but
ably
the
Over-the-
for
prob¬
L_-
$0.37
of
9
$2.25
Over-the-Counter
1.19
2.25
(estimated)
At 20 the stock
than
0.50
———
is selling at less
share
per
earnings
estimated
times
the
for
unusually
low ratio for a company
with such
Most
of
the
National Quotation Bureau
characteristics.
officers
and
for 46 Years
year
ending June 30, 1959, an
strong growth
Quotation Services
Incorporated
other
Established 1913
supervisory
personnel
with the company
have
been
since its forma-
institutional
46 Front Street
CHICAGO
Continued
on
page
16
New York 4,
SAN
N. Y.
FRANCISOO
Volume
190
Number 5802
.
The Commercial and
.
.
Financial Chronicle
(103)"
How Can We
INDEX
Improve Our
Foreign Economic
The Bear Market in
Bonds Will
Editor, McGraw-Hill "American Letter"
Director. Foreign Economics
Department,
/
action
'
foreign economic policy said to demand-
'
: Is There
Mr. Diamond's remedial
pro-*
receive
now
editor
avers
out of the world market if
we
need not
we
He terms the "dollar scare"
but adds this
does not
higher labor
mean
Mr.
costs.
we
Diamond finds
integration
deeds; and
dispute;
inveighs
against
Marketing's Job for
reaction to Nixon's treatment
sees
overlooked
in
the
the
World,
roots of
Government
our
New York
leading to better
cannot afford
to
lose
sources
any
throwing
or
schedules
out
of
ill
advised
-
policy already
adopted
or
taking
quick
employment
llMfaigfefc,
our
position.
In
here
liBfc
***?
U.
of
America's
Walter D.amond
foreign
polthat demand
careful
industry
and
of
^
the
of nearly 200.
bulk
Qf
these
Middle
constructive
East, Moscow's main
of
(1)
Russian economic warfare;
(2) growing protectionism in the
U. S.; (3) preparation for
regional
loans
most bases at rion-competitive
market trading areas; (4) outflow
nf' nrivflfp
of
invpstmpnt'
r.5)
T.ntin
private investment;
In the past two
An ine P'
arranged
arranged a total
Latin
American
good
neighbor
pol¬
icy; (6) increasing foreign compe¬
to'American
business;
lion
(7)
East-West Trade; (8) foreign aid;
(9) U. S. Anti-Dumping Act, and
(10) education of the American
'
,
..
^umber
£
+u
.
well
as
as
dumping
foreign trade
powerful ex-
nancial aid and
stepped-up
late
world
U.
Despite
including
S., simply like
denials,
the
a
where
it
international
turn
on
exchange
of
can
through such methods
or
stockpiling
*An
address
of
by
Mi*.
as
World
loan
in
,
to
build
roads
Iraq
begin-
were
'
recent $137 milion
to
Iraq at 2%%;
American
gaining
this
Egypt's
President
the
Kremlin's
dumping
alternative
Africa
is
did and
the Rotary Club of
Chicago during World
week.
long-term loan
to
for
Tax-Exempts.
Already
to Libya
,
•
31C
Wage-Price
many years we
on
that
as
.
See It
BROAD
Man's
y
Nashville
Stock
Chicago
Schenectady
Cover
•_
;_
29
the
Investment Field
NSTA
\___
Notes
Electronic Research
Associates
9
-
Century Chemical Corp.
37
___.
30
.
Singer, Bean
16
News About Banks and Bankers—
Glens Falls
Worcester
22
Observations—-A. Wilfred May.
Our
Reporter
Our
Reporter's
Public
HA 2-9000
21
Report
Utility
Railroad
mackie,
&
4
Governments..
on
First Lumber Corp.
10
___
Indications of Current Business
Activity
Funds
Pacific Uranium
8
8
____.
Washington Ahead of the News—Carlisle
Bargeron
Mutual
Burndy Corp.
48
...
Einzig: "How Wall Street Affects Tlirogmorton
Street"
From
Securities—
Direct Wires
San Francisco
24
Securities
Philadelphia
*
,
inc.
40 Exchange Place, N. Y.
Teletype NY 1-1825 & 1-4844
47
1
___
Securities Now in Registration—.
Prospective
Securities
Security
to
Dallas
Los
Cleveland
Angeles
Chicago
38
Offerings.
46
Salesman's Corner
The Market
an
The
.
.
and
.
35
__
You—By Wallace Streete
Security IJLjke Best
17
—
2
;___
Industry
Soviet
oblit-
5
Washington and You___
Si-
Advertising
48
32
Column
not
available
Twice
this
the
w^ek.
Weekly
Copyright
1959
The COMMERCIAL and
FINANCIAL
25
S.
Patent
Place,
REctor
J.
New
2-9570
ary
Publishers
York 7,
to
Reentered
Office
COMPANY,
N.
SEIBERT,
Thursday, July 9,
and
Other
city
news,
Offices:
Chicago 3,
111.
135
Possessions,
President
St.,
(Telephone STate 2-0G13).
in
matter
United
Territories
Union,
Dominion
Canada,
of
Countries,
Other
Bank
$45.00
and
Febru¬
must
and
$72.00
per
be
U.
Members
per
$68.00
year,
per
is
one
of
useful tools in
new customers.
to
place
advertisement
in
oi
★
*
★
in
year.
year.
THE COMMERCIAL AND
Record—Monthly
(Foreign
account
in
smart
S.
of
Postage
the
New
York
fluctuations
funas.
FINANCIAL CHRONICLE
extrai
ir
of
exchange,
remittances
foi
subscriptions
and
advertisements
made
it's
Publications
rate
foreign
So
your
States,
$65.00
Quotation
per.year.
Note—Oh
the
Salle
securing
Dana
office at New
the Act of March
8, 1879..
Pan-American
Other
1959
La
B.
Subscription Rates
etc.).
South
second-class
at the post
Subscriptions
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete stati.'tical issue— market quotation
records, corporation news, bank clearings,
state
as
25,. 1942,
York, N. Y., under
Y.
9576
MORRI&SEY, Editor
DANA
by William
most
Company
CHRONICLE
DANA
B.
Park
Exchange
TELETYPE NY 1-5
J.F.Reilly&Co.,Inc.
'
*
Dealer-Broker Investment Recommendations
GEORGE
ST., NEW YORK 4, N. Y.
Boston
'
________
Bookshelf,.
Coming Events in
1868
TELEPHONE HAnover 24300
Albany
36
-r
Business
WILLIAM
25
'
_
(Editorial)
Bank and Insurance Stocks
Reg., U.
York
'
..
_
We
The State of Trade and
PREFERRED STOCKS
New
36
North
page
Spencer Trask & Co.
BASIC ATOMICS
Regular Features
As
WILLIAM
Members
Spiral
___
^Published
Founded
31
—
Purchasing Agents Report Brisk Business
Conditions—______ 47
*
have specialized in
(Boxed)_____
,
Continued
CORP.
24
___
Conference Board Study Attributes Export Decline to
Strong
European Economies
re-
really
in
PERMACHEM
16
__________
neutral,
a
target
foothold
Libya.
of
Nasser
BROADCASTING
12
Than
hopes
Now
become
new
31 ms
/-<
have
market.
goods
Trade
For
!____
year, as a
dispels all
exporters
decided
before
of
Communist-inspired
has
commodities.
end
by
what
it
calls
Afghanistan through its
off
Diamond
since
richer prize than Egypt. Moscow's
posior
contrast
aid,
made the most with
mjiii0n
•
faucet.
a
in
of
men.Is to the West each
that
in-
credits
uprisingg again hit the country. Khrughc^ev now regards Iraq, with her
225 million
barrels Gf oil
ship-
fx-
Kremlin
tends to wiggle itself into
tion
Growth)
REFINING
METROPOLITAN
Price Stabilization
on
ranWays
when
longer repayment
trade,
has
of only $1.5 bil-
njng jo resume full production
capacity after the 1958 revolution
terms, particularly to Latin America, means that Moscow eventually hopes to be able to manipuof the
in¬
loans
the U. S. has made to
Factories
with the U. S. thiough
barter,
Free
$j50
is at the
mercy of a
ternal fmx-e never before encountered. Khrushchev's declared "eco-
nomic war
grants
Russia
years
$65 billion
the
and
that the luture of American
lndustry
these
the
and
"saving"
one of these ten points,
economic
offensive,
Russian
means
long-term
higher than 2%-%.
no
e Kremlin
propaganda
.■
.
been
World War II. As is well known
cnnciimpr
'
the
rates
of
with
has
OIL &
10
By
fro"1 ^/to 20 years, 4n
terest
(5)
tition
COMMONWEALTH
Latin America Analyzed by
on
of Decision Is Now As to the
Economy's Future
line
action:
attack
Voting Trust shares
8
were
barter deals in Latin America,
In
Africa, the Far East and
immediate
an
plan
^
P
T
total
a
JUAN
RACING ASSN.
First National City Bank Urges Steel
Industry to Arrest
weaken-
40 bilateral trade pacts negotiated
last year, Moscow now has arranged
S.
icy
'zL
Jp|^H
J||^H
economic
and
SAN
20
Bank___
Essential to Growth
ing the credit position of nations,*
friendly to the U. S. Including the
the
are
remote at the
appear
YORK
4-6551
18
NAM Opposes TVA Bond Issue
Proposal
"f
their
facets
may
Dept.
/
moment, the groundwork already
'las heen firmly laid through a
Jthree-pronged
program
that
is
Vr
hurting
our
overseas
sales
of
'
importance,
ten
success
Securities
14
Halsey, Stuart & Co. Study Visualizes Bigger Business
kilter.
While the possibility of Soviet
W
to
strengthen
of
Tpr
/
in
action
order
-
.
Dynamic—Ira U. Cobleigh 11
1960s—J. W. Keener-—
Sucess Now Seems Remote
IMf
mSk''
to correct
ures
and
(Text of Report of Cabinet Committee
Ever
devisingmeas-
Manhattan
and Economic
material
raw
discrimination
WALL STREET, NEW
6
Savings Banks Association Resigns from ABA
The Time
industrial foundation
.our
the
Impact of Common Market
Chase
by cutting off U. S.
Obsolete
99
i
Common &
dumping
Needless to say, this artificial interference could get right at the
leadership
development of
economic
Free
no
against obsoletes !
5
World Shipping Prospects for
American Flag Operators
—Solon B. Turman
Latin American good neighbor
policy.
If the United States is to maintain its rightful role of
3
Business in Politics—Hon. Allan
Shivers
inflation and
our
We alone show
Telephone: WHitehall
by advocates of East-West, two-way trade with Russia; de¬
plores our highest protectionist wave since the 1930's; favors
passage of Boggs' bill and mediation of French-British eco¬
nomic
tmrnmrnmrnammmmmrnff
A MINORITY OF ONE
V
.
ahd COJOAKY
Substitute for Irrigation in the Offing?
a
Stewart-Warner Corp: Diverse
grossly exaggerated
fallacies
Continue—William Berger_Cover
—Hon. Derick Amory
price ourselves
continue
can
mmmm
Cover
International Reconciliation of Expansion Sans
Inflation
aggressive sales and less
pursue
restrictionism.
llCHTfnSTl
Page
:
—Roger W. Babson
.
——posals ranging from countering Soviet dumping to revitalizing
our
foreign aid approach. Not at all upset by his prediction
that our gold outflow in 1959
may reach $2.5 billion, the
international trade
;
*
IIow1 Can We Improve Our
Foreign Economic Policy?
—Walter H. Diamond-—
.j,
McGraw-Hill International Corp.
constructive
&S.
Articles and News
The Gold Rush of
1959—Peter L. Bernstein
By WALTER II. DIAMOND*
Ten facets of U. S.
3
25 Park Place, New York
7
The Commercial and Financial Chronicle
.
.
Thursday. July 9, 1959
.
(104)
4
prehensive charts, tables and in- est level; and from 1947 on, has
formation concerning investment nearly paralleled the 10% interest
companies, makes a highly valu-r rateTine—^xl.
investment policy and
objective, portfolio turnover, management performance and vola-
and history,
Observations
tility, asset values, earnings
Another interesting table shows
and able contribution to the current
thinking about the use of performance records in evaluating
withdrawal and accumulation trust management.
The authors
plans,
and
10-year records of approach this nettlesome question
hypothetical $10,000 investment with a warning about the reliance
programs.
"
on past performance (which we
records,
dividend
By A. WILFRED MAY
of
comparative performance
the
status, ex-
tax
ratios and management fees,
pense
with
fund
representative
each
others and with the composite of
the selected group from June, 1946
to December, 1958. These are dates
which encompass a complete major
Also
there is
discussion "in sometimes feel resembles doping cycle; that is, from a market peak
dollar depreciation, as well as the
FOR BOTH THE BARBER
depth" of the following: common the ponies from minute scrutiny through a trough to a succeeding
overemphasis of the "inflation"
AND THE ANALYST
stocks and inflation, advantages of of the past performance records peak,
BIBLE READING
-bugaboo
purchases of investment
company shares running at a $181
million
monthly rate, and with
With
befuddlement
investor's
the
choosing
the
of
chapter on "Life Insurance and
Investments" gives a thor¬
record
Your
market,
ough explanation of what life in¬
surance really is, maintaining that
maximum
This
it
is
for.
called
is
thoroughly compatible with
is
"any type of
policy should be
easier to understand once the sim¬
that
the
conclusion
again supplied
.by the 19th
life
insurance
annual edition
ple idea of an unvarying
of "INVEST¬
$1,000
MENT
now
COM¬
Wilfred
A
May
PANIES,"
a
416-page tome
compiled and published by Arthur
Wiesenberger & Co. ($25).
The
is
volume
both
reference Bible
a
covering
of
pure
the
of
material
"Common
on
The theory
what
people
Stocks and Inflation."
advanced
that
have in mind
really
inflation
discuss
is
dividual
under
inflation
is
the
influence
induced
Clarifying
Income
and
and dividend
14.3%
and
rapidly than The
Over-Insured
of
accentuate
-
Wiesenberger further shows the
in certain types of rea¬
soning about lifeTnsurance. These
have probably led many
pay for far more insur¬
ance than they need,.and still get
less protection than their circum¬
stances
require— and also have
steered people away from putting
money into common stocks.
Realistic observations regarding
riods.
Over a span of more than two
long enough to reflect the results
experienced in both prosperity
decades, encompassing four majorcyclical movements, the study
period
must
covered
shows that representative closedcompanies have piovided con-
and depression.
emphasis
the
emphasized:
be
The
last
of course further reduce the
already low yield generally available to the common stockholder;
and
major
•
ment ability are
of assets
income
gross
year,
jj-j order to reflect the
on capital gains. The fund
holder in most instances gets less
actual
experience,
purchase
investor's
sistently
various
the
which
in
o r
he could (but
than
S.
In
" to their substantially greater earn-
shTnT
little ' Comparisons
doesn't) sit on with-
and
management;
any
of
half
yield
the
of orcUiwy incoiim, combined
with.the differential between the
o^scounts bom asset value avail-
should be made
w]fh several companies jointly, as
on
Treasury obligations.
his detailed and
forthright
well
as
Crage
results
by the better
open-ends—in periods of advanc¬
ing as well as declining stock
prices. The authors attribute this
slipefiod record of the closed-ends
below
is
favorable
more
than those obtained
premiums should be in¬
d i n a r y income, cluded.
the return avail
Dividends paid should be taken
j
from the stocks in the Dow, }nto account, as increases or de¬
a ble
es
Industrial
Average which creases'in net- asset value per
Jones
3%
than
U.
fallacies
with some standard or
av-
a
"signally different sources
being distributed from the
tively stable" source of
ment income; and the other, con-
so-called American Average,
closed-end companies
Premium Paici Jor 1,le
a?
performance for the indus-
explanation of investment company
distributions Wiesenberger
ancl
|,.y'
-phe pqter should represent
broad cross-section of the indus-
open-end shaies at the time of
fallacies
people to
the true cost of insurance are also
offered.
a
paid-up
shown
is
It
of
case
of
man
in
who
65
the
has
a
his insurance is
still costing him something, in the
of
form
policy,
interest
which
could
The Realistic Results
profits realized from the sale of
sccu-rities). In characterizing such
a charted record of the coriiparative records of this American
profits
gotten
on
the surrender value.
In
event, at an advanced age, the
individual must examine whether
any
there is need for the
costly actual
remaining insu ra n ce.
Fund
Also
detailed data
and
Data
included
on
in
this
tome
are
229 United States
Canadian investment compa¬
nies,
including
their
background
#
■
;
sually far in meeting your columnist's minority view that capital
gains are fortuitous. Even the tax
regulations of some States, ineluding-New York, classify capital
gain dividends as ordinary income,
years,
Gestetner Ltd. "A" Reg.
Bought—Sold—Quoted
on
request
ment
With
accumulation
alleging
nnri
nAxTnn+r„A
...
lhe, a^" "f ,1,
i
"
J w'
Members:
55
Tel.:
BE
New York Stock
Liberty
Exchange
St., New York 5
3-8880
[
a,llo"1J
nnn^rfipJ
countiy
)C ac 1
.
>
THE
OVER
The
•
CONTROVERSY
FLEXIBILITY
highly controversial issues
SEC's currently
involved in the I
proposed
changes
ment
be
1929-1932 it declined to a 6% inter-
in
the
(July 9) hearings before the Com¬
and Finance Subcommittee
merce
Another feature covered, concern¬
mifch of the
so
public,
are
withdrawal
being
o
plans which are nowf f e r e d by 87 different
1870
funds.
Truly the Wiesenberger opus
uniquely is a must for both the
barber-shop fund buyer as well
as the top-level professional spe¬
We
cialist.
are
pleased to
very
announce
that
i
A.
COSENTINO
in
our
S
us
trading department
t
£
JOHN J. O'KANE JR. & Co.
42 Broadway
DIgby 1.G320
-
New York 4, N. Y.
Teletype N. Y. 1-1525
RECORD
tome
dealing with the investment
company situation comes to hfmd
from
UNDERWRITERS AND DISTRIBUTORS
smaller, but highly valuable
the
Economic
MENT
|
THE
PERFORMANCE
A
has become associated with
Correspondents inprincipal cities
throughout the United States and Canqda
MORE ON
JOSEPH
§
"
American
Institute
Research
TRUSTS
AND
OF INVESTMENT SECURITIES
of
(INVEST¬
FUNDS—
From the Investors' Point of View7;
Dominick
by C. Russell Doane and Edward
J.
Hills; American Institute for
Economic
Research,
Great Bar-
Members New
rington, Mass.; 1959 ed.; 96 pp.;
$1).
This 18th annual edition,
besides'bringing up to date com-
&
Dominick
York, American & Toronto Stock Exchanges
14 WALL STREET
Invest¬
Companies Act of 1940, will
clarified
in
this Thursday's
being bought by more than
800,000 investors.* There are now
over 200 of these plans available,
and 33 funds now offer Optional
ing
tun¬
,
J .
cx^tence on iim^Exdia ge^ in a
Plan—-Completion^ Lii'O Insurance,
Teletype NY 1-4686
PHvate Wire System to Canada
the
luoi-
now
Alfred L. Vanden Broeck & Go.
,.n~
exulain
;llcly.. a% e .f *
C!Uped price
event, the Wiesenberger
is also given io
plans,
which
are
the open-end funds,"
this conclusion,
by
1925 shows quite equal performance, with an early deviation facoring the Moody general index
attributable to the funds' loading
charge. This is in line with the
funds' unfavorable showing vi$-avis the Dow Jones Average in
coverage
the past
more favorable invest¬
results than those obtained
provided
ly, in debunking fund salesmen's 1924 to 1929 the results shown for
misrepresentations regarding their the American Average of reprefund's true yield (as 10% or so in senative funds far exceeded the
lieu
of
an
actual real yield
of 20% compound interest accumulation
rate; in the bear period
2 <:»%.).
Full
available
and
companies have in
end
"sweetening" the apparent income have obtained from, investments
by unnecessarily garnering capital of similar amounts left to accugains via portfolio switching oper- mulate at indicated rates of interations; and even more important- est, compounded annually. From
Banks, Brokers and Dealers
periods,
recession
all indicate that the closedshort
and
times
prosperous
latter years.
explanation is highly constructive
Interesting also is the volume's
in revealing some fund manage- comparison of the funds'performments'
abuses
in
deliberately ance with the results that would
any
analyses, which cover
periods
long
r
"a less stable source" of Average of funds with Moody's 125
and "not necessarily re- "industrial - Stock
Average since
ring," Wiesenberger goes unu-
In
,
as
income
be
and
studies
which the public is so
befuddled, fiom capital gains (i.e.,
corning
cur
(Omitted, unfortunately, is
Review
nature of in¬
payments. Ex¬
averaging 0.47%
penses,
Particularly interesting us the
"unmistakable evidence" that the
closed-end companies, both individually arid as a group, have pro-,
vided far more favorable results
than the, open-ends. Since each
fund was calculated from the first
.
,,
of the true
fication
come
Closed-End versus Open-End
cyclical day its shares were bought by the
-Jpublic, the loading-charges which
v
' *
apply to most of the-open-end's
/
and the Exchange's commission
Affirmatively, the
following 'charges-Ifor buying the closedconstructive requirements for ends, would have been minimized
proper
comparison of manage- in being amortized over long pe-
several—complete
movements,
Yield
Particularly
but
The
mention of the two-way course of
For
among
more
of
So it
is that during periods of inflation
a
premium is placed on sound
judgment and. penalties on the
reverse."
Our
fund
spokesman
interprets this as enhancing the
value of the,professional manage¬
ment
provided
by
investment
companies during inflationary pe¬
types of policies, primarily
one
man
is building up
other.
with
act
to
the age at which it
out'.. Premiums differ
or
taken
his savings more
marked
greater than normal tempo.
riods.
was
when they
''a
speeding up of the wholly natural
growth process."
The text goes
on to contend that "actually infla¬
tion calls for no change in the
rules of investment, although it
may involve a change or modifi¬
cation of altitude on the part of
the investor.,,, Like the museian
under the influence of marijuana
who thinks he is acting normally,
but
is
actually moving several
times his. normal speed, an econ¬
omy, industry, corporation or in¬
at any
regardless of the type
policy
because
is
choose
exactly placed
cost of insurance is
in two
new
insurance,
pure
same,
For
example, this 1959 edition has
cost per
given age, is grasped." It is pointed
out that at any selected age, as¬
suming
satisfactory
health, the
mutual funds, and an
overall guide to sound investing.
added
track-wise). Specifically they cite
the frequent neglect to take into
account the absolute and comparative amounts of the loadingcharge; the omission of allowance
for the reinvestment of dividends;
the failure to use a representative
period of time, which should inelude at least one and preferably
investing,
how t o
investing companies, use of investment companies
by fiduciaries
appraisal of managements (it is stated
that last"
year 66%
of the funds "outperformed" the D. J. Average), and
portfolio holdings (with a listing
of the most popular ,50 issues).
systematic
commendable is
Wiesenberger's setting
forth ox
the investment company concept.
Particular emphasis is placed on management expenses, and clari¬
investment
education
the broaden¬
manifesting
Also
"inflation"bull
Investment
Insurance and
ing of the book's scope is this
year's expansion of the treatment
saccorded to the insurance area. A
a
current
the
slanted
practiced by the eagerpeddlers at retail.)
beaver fund
over
midst
policy
as
,
NEW YORK
Volume
190
Number
5862
.
.
The Commercial and
.
Financial Chronicle
(105)
of the House Interstate & Foreign
Commerce Committee. (Interested
Is Theie
parties unable to attend can secure
a
transcript of the proceedings.)
issue
At
is
the
amendment
SEC's
suggested,
continuity
of
basic portfolio-management
policy in the absence of the stock¬
holders'
formal
permission
Babson explores tomorrow's
possible replacement of
high-cost irrigation making it commercially
practical to farm
to
prevent decisive change of
fund's character "in mid-stream,'"
much of
registration statement would
be required to recite the invest¬
policy in respect to the class
security management intends
hold.
tains
The
Commission
The present stumbling block is said
controlling the highly volatile hydrogen gas.
that
needed
flexibility is
by a clause stating that
the fund may make "appropriate"
We
of investors.
holding
safeguards
propriate"
the
in
tnat such flexibility
little, because of
the
of
son
professing
tury,
textual
mutually satisfactory
compromise
Labadie Exec. V.-P.
Present
been
ment
Dr.
Puerto
Rico,
ef¬
Aug. 1,
the
of
k,
n
nounced
day.
to¬
Mr.
talvo
La¬
been
sistant
tary
Juan
Treasury
Labadie
of
Rico
in
charge
cial affairs since 1955.
-Mr.
Labadie
was
from
and
the
Eurite
of
finan¬
graduated
he
attended
where
Uni¬
he
Cornell
Uni¬
received
his
master's
degree in
agricultural
economy. He was head of the so¬
cial
science
College
of
department of the
Agriculture and Me¬
chanical Arts from 1941 to
1947,
and head of the statistical division
of the Bureau of the
1951.
of
of
He
the
the
Budget until
appointed Director
was
Bureau
water
we
are
of
Tax
Treasury
Collection
Department
.in
1953.
will
work
\
is
by
irrigation.
building an
together
with
These
chemistry
with
gas
oxygen.
in
his
furrow.
Further¬
is
obtainable.
I
of
who have studied
know that water con¬
us
two
elements,
hydrogen
In the chemical lab¬
oratory we were
decompose water
rain"
plowing
and
will disk
or
both
farmer,
leveling the
after
land,
harrow it preparatory
under
will
be
led in very small
applied to the ground
directly after the disk or the har¬
rowing machine passes. If all goes
well,
after
small
and
or
the
oxygen; will
matically
the seed
form
water
or
This will be auto¬
covered
is
a
hydrogen
with
soil
after
dropped. This planting
should result in marvelous crops.
Please do not write
ther
particulars
farmer nor
a
a
I
as
me
for fur¬
am
neither
chemist. Write the
taught
into
how
these
to
two
commercial
way
by
means
of
the
.process.
It
much heat arid sometimes
This
in
rough,
created
an
is
ex¬
carried
economic
cut
sharply.
-
trend
Looking ahead, a recent survey suggests a
firmly rising
capital expenditures over the balance of this
of business
year.
"
The
"Monthly
'
I
Review"
article
also notes that broad
price
steady in recent months, although it
possibility of stronger upward pressures on prices
emerging in some lines as rapid reemployment of industrial facil¬
aggregates have held
mentions
about
the
ities and manpower press against
capacity.
A second
article, "Growth Without Inflation in Britain," sug¬
gests that Britain may well be on the threshold
of a period of
sustained growth without inflation.
The article, one in a series
that began in June wtih a
study of "Creeping Inflation" surveys
Britain's problems in
attempting to reconcile economic growth
with price stability and the views
of British observers as to how
this reconciliation might better be
achieved in the future.
/
flation
contributed
insecticides you use for spraying.
They
and
will
be
the
distributors
manufacturers
of
these
gases.
write
the
company
'
from
which
tilizers.
buy
you
The simplest
fer¬
your
thing would
to
such
manufacturer
secticides
or
him if my
fertilizers,
of
1949
revaluation
of
sterling,
experience, the "Review" states, have come poli¬
a strong revival of confidence in
sterling
degree of price stability that has not been known in Britain
since the '30s. Moreover, the-conditions exist for
continued price
stability.
The rise of investment In recent years has greatly in¬
creased both the capacity and the
efficiency of British industry.
Hence, there is room for a considerable rise in total output and
in productivity per
man, which would in turn act to maintain
stability or perhaps even to reduce unit costs of production.
and
a
Having achieved the requisite price stability, the British
Government, the "Review" says, has moved rapidly toward facil¬
itating economic re-expansion.
The lifting of controls on instal¬
ment
credit
in
the
autumn
of
1958
and
the
reduction
have
been
accelerated, and special tax incentives for private in¬
been strengthened.
have
Nationwide Bank Clearings Up 23.7% Above 1958 Week
Bank
clearings
this? week will
show
increase
an
try, indicate that for the week ended Saturday, July 4, clearings
for all cities of the United States for which it is possible to obtain
wcpkly clearings will be 23.7% above those of the corresponding
Continued
-
on
asking
associated
with
are
We
are
pleased
to announce
that
Keller
V.
now
MR. GORDON Y. BILLARD
Brothers
the
has this
Securities Co., Inc., Zero Court St.
Joins
day been admitted
general partnership in
Townsend, Dabney
our
to
firm.
(Special to The Financial Ciironiclk)
We
are
pleased to
announce
BOSTON, Mass.
the
—
Carl C.
Wu
has joined the staff of Townsend,
association with
_
.
us
of
Dabney & Tyson, 30 State Street,
•
members
as
"
Manager of
Boston
our
of
Stock
With
Investment Research Department
the
New
York
Hie key
Kew Tor\ Sioc\ Exchange—American
Slocl{
Midwest Stoc\
Exchange
26
our
offices
to
Broadway, New York 6, N. Y.
Telephone WOrth 4-3900
is
now
David
—
connected
with
DiRoma, Alexik & Co., 1387 Main
Carreau
&'Company
Established 1921
S.
Exchange
Broadway, New York 4, N. Y.
Telephonei.HA'nover 2'7900
Shutt
Street.
Members
\
115
DiRoma, Alexik
SPRINGFIELD, Mass.
&
and
Exchanges.
(Special io The Financial Chronicle)
H.
Vilas
We have removed
_
James F. Clohessy
Romanoff
Adds
Members \cw York »Stoel{ Exchange
(Special to The Financial Chronicle)
WORCESTER, Mass.
Gottlieb
has
been
—
added
staff of S. Romanoff Co.,
Main
Street.
Members American Stock
Irving
to
the
Inc., 340
compared
with a year ago. Preliminary figures compiled by the "Chronicle"
based upon telegraphic advices from the chief cities of the coun¬
in¬
George
—
income
purchase taxes in the April budget have stimulated personal
consumption.
The investment programs of the public authorities
(Special to The Financial Chronicle)
Mass.
in
and
Two With Keller Brothers
BOSTON,
the
Out of this
forecast is crazy!
Gage and Robert Shaine
to
fixed incomes, to ever-increas¬
sought to maintain the purchas¬
on
cies that have brought
be to cut out this column and send
it
the
ing wage demands as workers
ing power of their incomes, to complications in the
management
of the government debt and
consequently in the maintenance of
monetary control and to periodic bouts of speculation against
sterling.
buy the
you
to
squeeze on pensioners and others
vestment
from which
company
beam of light. I
remember, how¬
ever,
that it was dangerous to
plosion.
accompanying
explosion,
its equivalent.
a
reverse
the
oxy¬
These
pressure.
be
gases of
hydrogen and oxygen; in
this is now being done in
has
The pitfalls of a prolonged—even
though gradual—rise in
prices have become painfully clear to British observers. Price in¬
"no
tubes to
be¬
that
How These Gases Will Be
Applied
.
arid oxygen.
a
easy
expansion
To an American, trie Bank
observes, one of the most significant'
aspects of these views is tiie absence of any serious
suggestion that
creeping inflation holds an answer to the problem of economic
growth.
• v .
v.r '
fftfK / 'i '!
gases
canals
Water May Be Manufactured
Those pf
fact,
con¬
be
business
he will want a limited ex¬
plosion so as to loosen the earth
before he plants his seeds.
Otherwise,
sists
am
be shipped directly to
farmer; and he will make the
gen,
lands, however, must have
equivalent of water, but this
be. "synthetic" water; I am
acre.
How
I
soon
hydrogen,
tanks, one containing
hydrogen and one containing
now
means
water
College of Agriculture
Mechanical Arts of the
versity
way
spent in New Mekieo and Arizona,
from which states I have just re¬
turned.
There you can buy "no
rain'.' land for $10 an acre; but to
have it irrigated—even if ihat is
possible—will cost you over $1(H)
versity of Puerto Rico, following
which
the
per
will
two
only
certain of this- after my few weeks
the
it
to planting his seed.
The disking
machine which he rides will carry
Wasteful
a
will
Secre¬
Puerto
Very
The
As¬
of
Irrigation
sufficient
some
process
will
The
few new irrigation
systems will.be built.
s s.
has
into
lieve that
very
who has
Labadie
washed
and
in Africa
was
when it has water;
The
ii
resigned to go
into private
busine
I
result, all present forms of
irrigation are very wasteful, even
Mon-
Mr.
these
rivers
able to give these "no rain" lands
As
badie succeeds
Roberto
the
are, of*course,'•open, and the water
is subject to serious evaporation.
an¬
new
land, however
more,
normally fer¬
our
expensive
dam,
canals to Ihe area.
Presi¬
dent
Roger W. Babson
When
This-usually
Rafael
Pico,
a
for
Bank
fective
This
diluted
mixture
last year I was. told that the Sa¬
Desert will "blossom like a
Juan
has
the
hara
appointed Executive Vice-Presi¬
dent of the Government Develop¬
B
down
rose"
Eurite
which
cen¬
oceans.
Of Govt. Devel. Bank
greatly simplified
Moreover,
that
buy
This
lands have had
the
Labadie
no
during
away
be
cut.
true.
to
i nsand
tile
costs
vinced
minerals, while
will
and
can
be worked out,
will
be used for all
be
are very
in
vita-
rich
m
it
Oxygen gas can now be se¬
cured quite cheaply, but
hydrogen
gas is expensive and tricky. We
may need a "trigger" to combine
the two, but; this will not
long-
years
which had
on the need for port¬
folio; flexibility, it is our conclu¬
a
now
lands
rains
which will take the place
systems of irrigation;
present
but
away from water it may be
in this country or in
any part of
the entire world,
which
these
agreement
that
Business Failures
activity
to new records
through the first half of 1959 is
proceeding with
no evidence of a slow-down
in
momentum, according to the July
"Monthly Review" of the Federal Reserve Bank of New
York.
Measures of industrial
production, personal income, and retail sales all set new
highs in May and these levels
appear to have
been maintained or
improved in June.
Employment, which lagged
in the earlier
stages of the business recovery, has risen
briskly
in the past several
months while unemployment has been
to
from
the. past
sides
Auto Production
Industry
J
The
far
The-rea¬
is that
ago.
mission officials.
sion
are
few
a
in
categorizing a portfolio; hence
involving the supplanting of man¬
agement's interpretation by Com¬
both
come
was'.abs olutely sterile
advance
With
of
most
can
land
of spelling
precise definition
of "defensive" or "growth" as
ap¬
plied to securities, or "balanced"
in
process
Our
and
nia
impracticability
out
lands
when
beautiful lettuce arid similar table
grown
terms
"ap¬
"protection," and
and
arid
crops
from Califor¬
mean
the- vagueness
that
finest
vegetables
which
are up
know
the
they finally get water.
reservations for freedom of action
the
appropriate "protection"
arms,
all
produce
for
industry's leaders
Trade
Index
Food Price Index
This invention would
for successful
crops.
be in
main¬
provided
The
and
hydrogen with oxygen as part of the farming
and, thus, provide water or its equivalent
necessary
process
ment
of
Cat-loadings
Retail
Commodity Price
mix controlled
the
to
arid but fertile farm land.
our
Electric Output
State of Trade
Mr.
To
Steel Production
The
By ROGER W. BABSON
change.
a
r
Irrigation in the Offing?
insure
to
Substitute for
a
5
July 1, 1959
Exchange (Assoc.)
page
34
-
The Commercial and
6
Financial Chronicle
.
Thursday, July 9, 1959
.
.
<106)
Future Problems
production bus now
recove'red and continues to
United States
fully
International Reconciliation
Exchequer, Great
Chancellor of the
the
■j
r
the problem.
stands fully
life
that
affairs
spend
the
greater
part o f o u r
dime
m
anxiously
looking
for
diffi¬
new
I do not com¬
this
life
large; too large; indeed,
large in parts of the
it was so
inter-war
period as to lead some
countries
democracy,
both po¬
What our
abandon
the
H.
Derick
would be dull
there
has
economic.
and
Throughout Western
Europe production was also con¬
tracting, or, at. best, expansion
was faltering.
The prices of pri¬
mary
products had fallen, and
up
over
the
horizon ahead.
if
paid
contracting.
culties coming
plain of
myself;
past
been
distant
more
price
postwar experience now shows, I
believe, is that this price need
never
be so large again. '
This time last year, the, United
States economy appeared, on the
evidence then available, still to be
d
an
s
the
litical.
tling with un¬
solved prob1e
in
when
to
wres¬
the
times
been
There have
organization.
inescapable facts
those of us who are
concerned with the practical con¬
duct of economic and monetary
It is one of the
of
reserves
primary
many
being
were
We had seen, not long be¬
eroded.
were
of
countries
producing
Amory
substantial drawing in of
reserves
by
1he United
States,
and
fears were already
never getting a dull moment. But
this occupational
hazard carries being expressed that dollar short¬
age would develop in the course
with it the danger that we and
of
the year.
More generally, it
others will come to sec the world
was
being
suggested
that the
as perhaps a more sombre
place,
Western world faced the danger
more fraught with dangers of dis¬
of a cumulative downward spiral
aster, than in fact it is.
And
problems.
no
Finance
Ministers
of
indeed
in
fortunate
are
fore,
a
world
of
Encouraging,
It is with that
thought in mind
that I want to begin xby
some
of the
economic
events
The
which
I
the
of
the
recent
of
free
coun¬
group
producers were forced to reduce
their imports
to stem their re¬
serve
losses; while this in-turn
would lower production further in
conveying
reassurance
personally have drawn from
past.
production and trade, accom¬
panied by an intensification of
trade
restrictions,
as
primary
Events
Reassuring
the industrial countries.
tries
making up the Western world
is now emerging from a test of its
ability to withstand the onslaught
of
recessionary
forces.
has
It
Liberal Trade
In
flow
as
sion
think it well worth paying^for
the basic form of
'"An
the
address
American
by
econolnic
policies
before
Association's
conference, London,
monetary
Britain.
rate
throughout
in .the
United
the
at
I
am
an¬
which
did
so
much
to
prevent the spread of serious re¬
Great
cession
throughout
the
world.
countries.
tained, under our system of free
industrial
collective
bargaining
Latest up-to-date Report
m
insurance
Many
tax
force
our success.
i
operation
more
rafios
which still continues.
No
bankers
than
be
are
conscious
more
of the practical
problems inherent in this field of
investment, such as the import¬
ance of finding means of financial
assistance which will be effective
their
while; not over¬
straining the recipient country's
ability to service the loans. It is
this,
perhaps above all,
which
helped to block the cycle of re¬
cession at the start,
by greatly
easing the balance of payments
problems with which, otherwise,
many
primary producing coun¬
tries would have been faced.
1
in
purpose
do
r.ot
know
industry
and
the
that
remarkable
life
record
insurance
of
stocks
This
flowed
has
finance
20 year
the
have
progress
1956
1957
Use this comparison to spot underpriced and overvalued life
insurance stocks. It plainly indicates several stocks that are
now
YOUR
—large
as
well
COPY, SEND $1
as
WITH
small
of
which
have
import
cost of
living.
when
this
effect
big
a
not
and in
great
international
institutions
like the I. B. R. D. The Interna¬
tional
Fund has also
valuable part in
relieving the stresses of fluctua¬
tions in balances of payments.
It
Monetary
played
most
a
further
the
rise
in
prices averaging
comfort
steps
ternational
and
the
of
value
and
money,
more
process was ail
to
companies.
COUPON
to
observe
which were in¬
to expand the re¬
Bank
and
St., New York 4, N. Y.
to
pay
a
most
United
Tight Credit in England
(Please
CHRON 7-9
DIgby 4-7485
Print)
labor and
capacity.
Wc
have
been,
likely to re-create the
done is not
degree of pressure of demand on
resources
which we had in the
boom
periods of the past.
Inflation's Lessons
of the clearest lessons
experience that, if you
want to avoid price inflation, it is
essential to keep the pressure of
demand
within bounds.
If you
have conditions in which expend¬
It is
one
our
iture
on
goods and services is so
high in relation to the capacity
to produce them that most pro¬
ducers have long order books and
sterling, but also to break the
steady inflationary trend. Hence
the series of sharp monetary re¬
can
was
necessary,
strictions, with the 7% Bank
and
so
011,
which were put
Rate
into
sell
practically
everything
produce without difficulty,
pressure on the price level will be
they
irresistible.
On the other
hand, 1 think it is
Like
of
without
Here
sin¬
a
in
United
the
not
the
even
large
block?
Many
contribu¬
States
have
sell
to
nations co-operate in their activ¬
ities,., but
they
begun
Call.
to
'
•
function.
were,
have
world
been
not
none
of
of
them
Marketing Depart in ent
could
great avail had the
able to maintain
been
in the two great
currencies, the dollar and
These, by supplement¬
ing the world's gold stock on a
massive
scale,
make
the
free
working of an international mar¬
ket economy possible.
its
confidence
reserve
of
not merely
to beat off the immediate threat
to the
international position of
action
contribution
the
States
are
however, extremely careful to assure ourselves that what we have
of
Ficed
Merrill Lynch,
Pierce, Fenner & Smith
INCORPORATED
the pound.
Name
Address
Tel.:
the future
could be counted on.
But, important as all these fac¬
Ralph II. Leonard & Company. Inc.
of
Mr. Jacobsson
have in the postwar world.
tors
25 Broad
came
enabling
these institutions to do what they
tion
not allowed to creep
only means that we
now
are
be even greater.
should
I
tribute
the
ot
think
the end of our
for Reconstruct
Development
may
think
cere
tive
*
inevitable one and
that its continuance in
are
employment
that the
past. In the future I think the im¬
portance of the
Bank and the
could
You will also receive FREE 20-year Analysis of 24 Life Stocks.
Specialists in Haul; and Insurance Slocks
they
feel
to
utilization of the national produc¬
about
have had great roles to play in the
Fund
of
4U/% -pcr annum over the period.
Naturally enough, as people ob¬
served
this continued decay in
more
come
present well below the level of
pressure of demand which would
ensure
a
satisfactory high level
price stability
a
rea¬
every
will remain
at
In the period before
of persuasion
employed to reconcile
with full employ¬
ment and. the
growth of Output
proved ineffective. The result was
It
back.
measures
were
have
inflation
rising wages.
which
have
of the I. M. F. and the In¬
sources
tion
so,
there
tendency/to
price/inflation in consequence of
the'more or less annual process of
the
we
struggles with the problem of rec¬
onciling expansion with price sta¬
bility. And we must be ever, vigil¬
ant to see that the conditions of
our
But, even at times
was
I
caus¬
the months ahead.
This does not mean that I
we
with this critical situa¬
governments,
individually: tion,
the
present
Conservative
co-operation; and from the Government decided that drastic
from
a
•
prices,
011
And
to hope that they
in
so
in."the
world
higher
shape
4957
process as we
stable.
main stimulus to the
seemed to come
outside
without
resumption of the inflation¬
knew it before
For, like last year,
prices have remained practically
a
ary
wages
the
demand,
of
two years ago.
from
from private capi¬
tal markets and banking channels;
I
with comparative earnings for 1954, 1955,
in
from
many sources;
Rooth
life companies instead of
and
Institutions.
Investors
making.
FOR
will
one
.
:
Black, and^ the Fund un¬
65
covers
Individual
rise
this
the
the belief that this
take place
ing
son
the
period
last
I
expansion
acted in
now
can
*
•
seemed to be a' strong
Investments
of
Flow
Mr.
years
for
prices.
fast
indeed
over
recent
years. 1 refer in particular to the
large increase in the flow of longterm capital from richer to poorer
countries which we saw in 1958,
and
have
'-/At certain times in the postwar
very
Mr.
investors
attractive
economies.
things have moved
field
this
In
limited
tendency for.average
a
of
which
effect of which will be to cause a
to rise faste(r than produc¬
tivity, per head.
This led to an
increase of unit cost of production
which in
turn
pushed up
underdeveloped
and
der
3
va,ues f°r T957 and 1958; plus current price-times earnings
very
.
.was
The
expansion.
presented
April gave further effect to
new
policy. In taking steps
wages
relations
of
der
insurance
e companies
been more evident, or
valuable, than in the field
between developed
.
last
°rUocC0,Pr,ghted c?n,parative Performance Analysis shows
Vkeo
main reasons for
Nowhere has this co¬
the second of the
including 1958 earnings and percentage growth
pr°fifab'e
>n the last 10 years than even Fresh
the big profit mak¬
Chips
like duPont and General Electric.
opportunities
the
in
life
over
Invaluable
substantial
sheltered
;n»nR|ar
ing
Blue
are
in
heietofore.
as
there
is
co-operation
economic
tional
interna¬
of
measure
nearing completion. I regard this
as most important.
The Bank un¬
WHAT OPPORTUNITIES NOW?
60
real
The
rat<5
steady
budget
played in the process of price in¬
by
the
movement
of
wages. We learned that, if we had
full, employment and widespread
confidence that it would be main¬
of
sense
itiated last year
65 LIFE INSURANCE STOCKS
two
flation'
that
Comparative Analysis
consider¬
in t^c pace of
price inflation, though it was not
completely stopped. One impor¬
tant factor in this better trend of
future
responsibility
which countries have shown
in
taking into account the effects
which their policies have on other
the
mind
is
1\EW
term, there was a very
able slowing clown
the
particularly in
sponsible," I have
a
reces¬
States.
glad to have this opportunity of
paying my tribute to the calm
and
enlightened
United
States
economy
Mr.-Amory
Bankers
nual
our
continued
dollars
of
high
tions is the price we pay, because
these fears have
be shadows. The out¬
event,
proved to
emerged with success.
Sus¬
ceptibility to economic fluctua¬
maintaining the market
the
so
far
we
With
Hand-in-Hand
Recovery
a
depend essentially on
degree to which we, in our
countries, succeed in a recon-,
filiation
of economic expansion prices was the decline in the cost
of our imports arising from the
produemg countries, have gen¬ and price stability-.- We in England
change in world raw material and
erally been stabilized or strength¬ Ishall be watching with the great¬
food markets.
There was, how¬
est of interest the great economic
ened.
ever, another factor, a consider¬
debate
on
this issue which has
All this has been achieved with¬
able slackening off in the pace
out any general retreat from the now opened in the United States,
of wage increases, which was un¬
liberal trade poliices which all of for I am sure you have much to
doubtedly in some degree the re¬
teach us. It may in turn be^f in¬
us have been endeavoring to pro¬
sult of the policies adopted by the
terest to you if I say a little about
mote throughout the postwar pe¬
government.
the' >development
riod.
both
of
our
By
the middle
of
1958 the
It
is
worth reflecting for
a thinking and of our experience on
change in the general position wasthis issue in this country.
moment on some of the reasons
also sufficiently great for it to
We have certainly been aware
why the Western world has sur¬
make it possible for the govern¬
mounted its difficulties so vyell.
of:.the tissue for a long time. It
ment
to
begin dismantling the
The first is the "pursuit,
by all emerged clearly to our minds in
various restrictive measures and
major
countries,
of sane,
in¬ the first years after the end of the
gradually move over toward the
formed, and responsible economic war. It also became clear at thai
encouragement of a cautious and
that
a
central - part
was
policies. In using the term "re¬ time
in
general have been
strengthening since the beginning
of the year, and reserve positions,
in
both industrial and primary
prices
confidence in the dollar
and the pound for aiding world recovery and making free
working of international market economy possible, and he
outlines factors responsible for this including primary role
played by U. S. A. Looking to the problems of the future,
Mr. Amory avers continuation of world confidence in these two
currencies and satisfactory economic evolution depend on his
and our country's ability to reconcile "economic expansion and
price stability." Stressing the impetus given to inflation by
wages outpacing productivity, the British official says no solution will be found unless and until the general public under¬
head credits world
British exchequer
abroad, these measures
considerable degree of suc¬
cess.
The drain on the reserves
was
brought to an end and re¬
versed.
In the somewhat longer
had
indeed the re¬ to discussing the problems of the
has never future. The continuance of world
amounted to more than what will, confidence in these two great cur¬
appear, in retrospect, as a ripple rencies, and more generally a sat¬
on
the trend.
Primary product isfactory economic evolution in
IIEATHCOAT AMOKV*
Britain
By HON. DERICK
economic
home and
production
in
cession
Aided
trends at
September, 1957.
in
general
by
upward, and
is now
Expansion Sans Inflation
01
effect
*
point perhaps' that I
may most suitably turn from con¬
templating the success of the past
the trend
Europe also,
In Western
peaks.
previous
bcypnd
expand
It is at this
70 PINE
NEW YORK
STREET
Offices in 112 Cities
5. N. Y.
Volume
'Number
190
5862
.
.
The Commercial and
.
Financial Chronicle
(107)
most
important not to exaggerate
we can hope to achieve by
what
so
we
always watching their
are
their
economic fortunes.
I
do
think
not
in
modern
a
com¬
munity it is possible to solve the
problem entirely by this means if
the competitive process by which
wages
and
other
incomes
are
so, and therefore govern¬
ments should not find it
necessary
to inhibit expansion on that ac¬
raised continues
completely unre¬
People nowadays expect
Sober Confidence of the Future
My general impression is
sober confidence
to
seems
that the United
ant
in
the
in the
that
me
one
of
domin¬
world
which I find reasonable and
trade
maintain
a
right.
Avoiding boom levels of demand
is one thing; accepting heavy un¬
employment would be quite an¬
other.
continue
nomic
The
existence
ideas
employment
control
work
and
of
within
cannot be
un¬
in
our
have
we
limits.
narrow
of
of
that,
means
demand,
to
We
yet that operating
sure
within these limits
price
strength
levels
about
we
can
world
tributions
needs
of
the
the
to
the
countries
con-
clear
that
in
now, since it
the middle of
inflationary
subsided.
As
I
be¬
last
pressures
explained
in
budget speech I felt that the
contribution to make
a
to the
re-expansion of production
employment
in
the world
and
countries."
generally, and I hope and expect
Continent*; of Europe
greatly
time
some
my
that our friends on the Continent
will march in step with us.
a
be
have
circle
U. K. had
of expansion
taking place, which
we may hope will be hastened
by
the easier credit policies of recent
months. Nearly all the European
to
trial
had
gradual resumption
seems
United
Kingdom
urging the desirability
stimulating economic growth
came
development
poorer
the
The
position
producing
proving.
improved
the
of
countries
Commodity
tending" to
primary
is
harden,
also
im¬
prices
are
and
most
of
same
When they have re¬
countries.
of
So
exchange
the
be
the position of sterling
strong. While the United
Kingdom's surplus on current ex¬
international monetary system;
and in strengthening it, we are
really strengthening ourselves too.
ternal account will be smaller this
than the exceptionally large
figure reached in 1958, the other
expected
tion.
countries
from
prices.
to
We
improve
shall
them,
their
other
and
be
The
sterling
be"
and
lead
steady
economic
with
more
area
as
much
recent years.
stability by the control of
alone.
Even though we
the
mand
there
extremes
of
boom
de¬
'"A
still be a ten¬
dency for wages to rise faster
than productivity and so generate
an-upward pressure on costs and
prices.
may
N
Public
Must
How
Well,
is
I
But I
Be
this
to
have
be
with?
solution.
that
sure
solu¬
no
be found unless and
til there is
some
TRUST COMPANY
Informed
dealt
magic
no
quite
arn
tion will
Fully
NEW
un¬
what is
involved in
That
is
why
land laid
STATEMENT OF CONDITION,
JUNE
solution.
a
have in Eng¬
lot of stress on efforts
a
ASSETS
enlighten public opinion on the
of prices, incomes
and employment. And that is why
Cash and Due from Banks
inter-relations
welcome
Social
the
venture
new
of
U. S. Government Securities
Securities Issued
Research, the produc¬
412,635,951
.
by U. S. Government Agencies
Stock in Federal Reserve Bank
going
Other Securities
in the economy—a
on
ven¬
.
.
.
34,628,839
3,347,100
possible, by the way,
by the generous help of the Ford
the
for
.
it¬
government
done in White Papers and other
public statements, we have set up
special independent body — the
Prices,
I.
or
its
Agencies
Loans Secured
.
.
.
*
.
.
.
.
.
.
.
.
.
problems arising there¬
the two
reports
and
from.
.
.
.
they
have
not been
published
free from
far
so
F.I I.A.
controversy, I
.
on
the
to
is
need
large.
by
some
to* introduce into the proc¬
means
of
ess
nation at
vital
negotiations a fuller
appreciation of the broad social
and
Banking Houses
particular
the
harm
the
decisions
taken
industrial
sector;
the
to
long-term
in
creases
fancy
some
the
easier
inculcate
to
of
consequences
it
have
is
in
ram¬
England, where we
experienced it in a
form.
How
fast
in making progress I am
going to try to forecast, but I
that
sure
keep
such
hurly
the
more
questions
and
the
progress will
It
we
can
of
the
out
clude
lasting
more
remarks
my
impression
the
be.
be of interest if I
may
looks
point.
of
the
con¬
by giving an
general eco¬
open
blow, and
in
on
so
to all the
we
take
economic
With
overseas.
ence
England as it
particular stand¬
The economy of this
interest
our
coun¬
a
trade
our
commodity
prices.
We
are
in
the
sterling
area,
McCOVERN
President,
United States Rubber
MI NOT
43,822,896
....
K.
.
.
.
.
.
DON G.
$1,885,675,541
...
.
and
Company
MIL LI KEN
Treasurer,
Deering,,Mil-liken & Co., Inc.
MITCHELL
Electronics
Deposits
ROY
Expenses
.
.
.
.
.
Dividend Payable July 1, 1959.
.
.
.
Corporation
MOORE
Chairman, Canada Dry Corporation
$1,677,146,752
.
Taxes and Other
VV.
PETER
13,642,980
S.
PAINE
President,
2,080,800
New York &
Acceptances: Less Amount in
Portfolio.
.
.
Other Liabilities
.
...
.
.
Total Liabilities
.
.
.
.
LoROY
46,108,922
......
.
.".
.
Pennsylvania Co.
PETERSEN
President, Otis Elevator Company
7,252,666
.
A.
WHITNEY
J.
1,746,232,120
PETERSON
President,
United States Tobacco
CAPITAL
DONALD C.
Capital Stock (5,202,000shares-$10par)
52,020,000
Surplus
59,550,000
.
Undivided Profits
Total
of the,Board,
General
Telephone & Electronics
Corporation
RAYMOND
.
.
139,443,421
.,
II.
REISS
President,
Reiss
Total Liabilities and
$1,885,675,541
.
POWER
Chairman
27,873,421
.........
Capital Accounts.«.
Capital Accounts.
Company
ACCOUNTS
E.
E.
Manufacturing Corporation
STEWART
i
Chairman
and
U. S.
Government Securities
monies and
pledged to
secure
for other purposes required by law
amounted
to
of the Board
Chief lisecuthe Officer,
National
deposits oj public
Dairy Products Corporation
FRANCIS L.
\1
E M
n
E
R
f
E D
E R A I.
WIHTMARSH
New York, N. V.
$90,341,599.
also
a
great many coun¬
especially those associated
us
Cyanamid Company
W.
Vice President and
great depend¬
international
the banker to
with
16,535,973
.
great
conditions
MALCOLM
JOHN
LIABILITIES
winds
economy is very sensitive to fluc¬
tuations in economic activity and
tries,
.
Corporation
C.
President, General Telephone &
in
prospect
from my
try is wide
that
.
President,
American
8,956,022
Total Assets
,
nomic
...
Other Assets
burly of party politics the
better
349,431
.
Accrued Interest and
shall
we
succeed
am
.
.
Chairman and
President,
....
in
only
milder
v.
.
.
MacDONALD
(ionoral Cable
W.
in
pant inflation in ail extreme form.
than
16,795,906
.
.
a
countries which have known
tragic
.
Liability for
Acceptances Outstanding
and
nation
.
.
of continuing in¬
price level. This I
the
is
whole
in
.
Customers'
economic consequences to the
of
...
17,145,337
wage
nation
Real Estate
.
LUKE
Fp and I'a per Company—
R.
Mortgages
sure
The
hot
Mortgages
Conventional First
service in
lems
I'ii
U. S. Government Insured
have
L.
President, West Virginia
785,247,285
868,306,530
they have done good
bringing home to peo¬
ple the importance of these prob¬
am
DAVID
53,772,211
.
...
Mortgages:
Though
KIRK WOOD
President, F. W. Wool worth Co.
to report to the public from time
to time on the state of the econ¬
omy
6.
ROBERT
29,287,034
.
;
by
Other Loans.
HARVEY, JR.
Chairman, The Vlintkote Company
\
U. S. Government Securities
Productivity
and Incomes—whose function it is
.1.
Insured
or
by U. Sr Government's. *
a
on
w
•
Loans Guaranteed
self, quite apart from what it has
Council
roc ARTY
President,
v
Continental. Can Company, Inc.
460,289,813
Loans:
Foundation.
as
THOMAS C.
9,677,923
made
And
MURPHY
President
.
.
WEST
of the Board
GEORGE A.
Underwritten
or
TOILS
RICHARD II.
Chairman
tion of authoritative reports every
two months on what is actually
ture
1959
Ill It El
470,618,970
.....
Securities:
the National Institute of Economic
and
30,
we
to
we
YORK
degree of under¬
standing by the general public of
the nature of the problem and of
DEPOSIT
INSURANCE
C O
R
P 0
R AT I O N
twin
aims
growth
experience and learned
a
the
secure
decisions
of
coupled
I believe
acquired much valuable
demand
avoid
the
stability of prices.
have
we
to
making
taking
which
higher
in
concerned
are
posi¬
at
in
We
policies
are
industrial
buying
probabiy
whole I should
area
is
subscriptions of all the ster¬
ling area countries. We are very
glad to pay out of our gold re¬
serves to strengthen
this institu¬
tion, which has provided such a
valuable stabilizing factor in the
com¬
I expect
sterling
reserves
new
pleted.
countries of the
the
course, by our
repayment to the I. M. F. and the
to remain
year
last
as
•
The picture for
much affected, of
beneficial
will
underlying position
year.
built their reserve positions to a
prudent extent they will no doubt
step up their imports from indus¬
of
year
by importing
freely and making generous
On
these
the
in
Jf-f V
period ahead.
have befen
for
her
recovery
in
.■;V'-
We
hope
can
so
high and stable level 'of employ¬
ment, and this demand is one
to
governments
count.
future^ It
we
States,
economy, will
encouraging
eco¬
from the recent
recession, and will continue
to, stimulate the
growth
of
strained.
their
positions in the last /the producing countries can look
forward to higher earnings in the
reserve
year or
the control of the level of demand.
7
.
-
a
lot
over
8
The Commercial
(108)
Public
Dealer-Broker Investment
New York
Jones.
Recommendations & Literature
send interested parties the
to
in
Chest
sociated
Automobile
14 Wall
Bond
Industry—Discussion—Shearson,
Growing
the
West—Booklet
—
Chicago 90, 111.
Monthly Investment letter — Burnham and
Broad Street, New York 5, N. Y. Also avail¬
Splits—In
Stock
for
current
"Market
Review"—
Harris, Upham & Co., 120 Broadway, New York 5, N.
available are reports on Automatic Canteen Co.
America and Minerals & Chemicals Corp. of America.
of
Metals—Booklet—Draper Dobic and
Ltd., 25 AdeUude Street, West, Toronto, Ont.,
Air
York 5,
Mines and
Argus
in postwar years—
Beacon"—Nomura
Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
available is a review of the outlook for Plant and Equipment
Expenditures in Japan Tor 1959 and brief analyses of
Mitsubishi Heavy Industries, Nippon Flour Mills Co., Iwaki
Japanese Stock Market — Study of changes
In current issue of "Nomura's Investors
Cement Co. and a survey of
New York.
Life Insurance
Stocks—Comparative analysis of 65 issues show¬
ing 20-year progress record, comparative earnings for 19541958; book values for 1957-1958 and current price-times
earnings ratios—$1.—Ralph B. Leonard & Company, Inc.,
Review
Year
&
Forecast—Market analysis—H.
Hentz &
York
City
Banks
—
Comparative
on
10
largest
Wall
is
performance over a 20-year period—
Bureau, Inc., 46 Front Street, New York
•••""•
• " '
\
• ••:-;
-
4, N. Y.
&
'
Progress
rities & Research
from
Petroleum—Review—National
Secu¬
Data
—
Neu & Co., 120
Also in the same circular are
Construction
'
able is
a
Wall
Gestetner
Canada.
...
,
-
t
•
■
llowe
Cement
Inland
Broad Street,
"
Co.—Memorandum—W. C. Pitficld & Co.,
Purepac Corporation
Plastic Materials & Polymers, Inc.
Technical Operations, Incorporated
Bought
30
York 5, N. Y.
/
'
y
.
•
Inc.—Memorandum—Hemphill, Noyes & Co., 15
Y.
Portland Cement Company
& Gannon,
Ltd.—Analysis—R. G.
Broadway, New
'
Sold
on
Security Dealers Association
Bell
Company
—
Corporation —Bulletin— Ralph
Broadway, New York 6, N. Y.
Electronics
Samuel & Co.,
115
E.
Owl
Ryder System Inc.—Analysis—Woodcock,
123 South Broad Street, Philadelphia 9,
-
South Broad
Analysis
United Western Minerals
—
—
Memorandum
—
&
Co.,
Teletype NY 376; 377; 378
Vitro Corporation of
25
Broad
Street,
121
James P. Speer &
America—Analysis—Hayden, Stone & Co.,
5, N. Y. Also available is an
New York
analysis of American Seal Kap Corporation.
membership in the
Association
of its managing
the
signed
American
held
Bankers
in the
name
director, George M. Penney.
:
Edward J. Pierce, President of
the
Savings
Banks Association,
said the resignation results direct¬
ly from ABA
port of the
7950), .which
against thrift
sponsorship and sup¬
Mason Bill (H. R.
would "discriminate
institutions in favor
commercial
of
banks
in the field
taxation."
"It is a deep
disappointment to
find* the American Bankers Asso¬
lending its support to this
is favored by such
ciation
bill
w
hich
the Independent Bank¬
groups as
ers
Association, the Bankers Com¬
Tax
"Arthur T. Roth
which
taxation
of
Equality, and the
Committee, all of
punitive
espoused
have
mutual thrift institu¬
"These 'groups claim
to be ad¬
vocating tax equality," Mr. Pjerce
continued.
Co.—Memorandum—A. C. Allyn & Co., 122
Chicago 3, 111.
—
Savings Banks Association
doing
Co., 2826 Central Avenue, S. E., Albuquerque, N. Mex.
Trinity Place, New York 6, N. Y.
The
of the State of New York has re¬
Pa.
Gerstley, Sunstein
Street, Philadelphia 7, Pa.
Warner
Savings
Resigns From ABA
H^ss,'*feyer & Co.,
South La Salle Street,
Stewart
the
Banks Association
Stores
Chemical
at
tions," Mr. Pierce said.
Inc.—Memorandum—Piper, Jaffray &; Hopwood, 115 South Seventh Street, Minneapolis 2, Minn.
Red
meetiag
annual
mittee for
Analysis — The Milwaukee
Company, 207 East Michigan Street, Milwaukee 2, Wis.
Northwest Engineering
request
Troster, Singer & Co.
Y.
Street, New York 5, N.
Packard
25th
Sheraton Dallas.
of federal
York 38, N. Y.
Newmont Mining Corporation—Analysis—Dean Witter & Co.,
45 Montgomery Street, San Francisco 6, Calif.
Northwest Airlines
Review1 — John H. Lewis & Co., 63 Wall
Stepan
Prospectus
HAnover 2-2100
.
Company—Report-—Laird, Bissell & Meeds, 120
Street, New York 5, N.
the
Investment
of
Group
New York
-y
Custodian Funds, Inc.—Analysis—May
Inc., 140 Federal Street, Boston 10, Mass.
Clifton Precision Products Co., Inc.
74
,
—
Poly Industries Inc.
The Kratter Corporation
,
.
Company—Data in current issue
Broadway. New
at
-
New York 4, N. Y.
Worth & Co., Inc., 160
Members Neiv York
'
Letter"—Amott, Baker & Co.,
Trust
Irving
Hotel.
Texas
and Stock Averages.
-
Americana
Bankers Association of America
of "ABC Invest¬
Incorporated, 350 Broadway, New York 38, NV* Y.' In the same issue are data, on v
White Motor Co., Southern
California Edison Company,
Koehring Company and Lone Star Steel Co. Also available
is the current issue of the Amott, Baker Real Estate Bond
Steel
ment
Convention
N. W., Washington 5, D.
v
*'y
Annual
April 6-7-8, 1960 (Dallas, Tex.)
Industries,
N. Y.
Harbour,
;
Investment Bankers Association
■
Lake Ontario
FXR, Inc.
Fla.)
;
Inc.—Memorandum—Weil & Co., 734
C.
Sound—Review—Ira Haupt & Co., Ill Broadway, New
Asso¬
of
Convention
Nov. 29-Dec. 4, 1959 (Bal
Railway
Fifteenth Street,
Annual
the Boca Raton Club.
.
Co.—Memorandum—J. A. Hogle &
Co.,. 40 Wall Street, New York 5, N. Y. ~
;
:
Ilanna Mining Company—Analysis—Harriman Ripley & Co.,
Incorporated, 63 Wall Street, New York 5, N. Y.
• .
;
Ilelene Curtis
1-5, 1959 4 Boca Raton, Fla.)
ciation
Co., 55
.
(Cincinnati, Ohio)
of Investment
National Security Traders
61
/ V
■
the
meeting.
Y.
: ;
Corporation — Analysis — MeLeod, Young
Ltd., 50 King Street, West, Toronto, Ont.,
(
at
Bankers Association annual fall
•
Co., 29 Broad-
•
convention
Hotel.
Ohio Group
:
,
annual
Oct. 22, 1959
Nov.
Ltd.—Review—Alfred L. Vanden Broeck &
Northern
Great
financial institutions
Electronics Capital Corp.
39th
N.' Y.
Corp.—Memorandum—Green, Ellis & Anderson,
Lakes Power
Great
(Philadelphia,
Pa.)
Warwick
.
Liberty Street, New York 5, N.
Broad
Hermes Electronics Co.
v
Co.—Memorandum—R. W. Pressprich & Co.,*
•
Exchange
Consumers Bankers Association
Company—Analysis—Hill
New York 6, N. Y.
way,
Stock
of
1959
14-17,
Oct.
Fuller & Co., 26
Corporation—Analysis—Schweickart &
Ferro
(Toronto,
ing at the Royal York Hotel.
r
Also available
Keystone
Recent New Issues:
Association
,
Broadway, New York 6, N. Y.
1959
First Board of Governors meet¬
.
'
Company—Bulletin—Strauss, Ginbcrg
Street,^New York 5,
28-29,
Canada)
Richards & Co.;
Angeles 14, Calif.' Also avail¬
study of Tax Free Municipal Bonds.
•
Detroit Havester
48
Sept.
Bank
Schroeder.
Hotel
the
of
37th annual convention
Women
at
Oppenheimer,
'
Association
National
interesting Convertible Preferred Stocks.
—
(Milwaukee,
Wis.)
Pacing Electric Company, Illinois Central
Kennametal
for
Club.
Sept. 23-25, 1959
South Spring Street, Los
621
Corporation, 120 Broadway, New York 5,
N.Y.
at Queen City Club; field
day, Friday, Kenwood. Country
2
Company, International Silver Company, Link Belt
Harvester
Detroit
market
and
National Quotation
Power
an
Inland
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
McKinnon,
Broadway, New York 4, N. Y.
Over-the-Counter Index—Folder showing an up-to-date com¬
yield
list of
a
Blos«man Il.vdratane Gas Inc.—Analysis—S. D.
banks in New York City—Bankers Trust Company, 16
Street, New York 15, N. Y.
cocktail and dinner party Thurs¬
day
115 Broadway, New York 6, N. Y.
analysis of Avondale Mills.
York 6,
figures
Cincinnati
of
Troster, Singer,
& Co., Inc.,
Co., 72 Wall Street, New York 5, N. Y.
New
—
Bond Dealers Group
annual outing —
Municipal
Corporation—Analysis—Reynolds & Co., 120
Corporation
Art Metal
Dept. CHIiON 7-9, 25 Broad Street, New York 4, N. Y.
Mid
Brochure
Steel—Report—Thomson &
Weir & Company
Company of New York, Inc.,
—
Company and Union Carbide Co.
the Steel Industry.
Information — Yamaichi Securities
Ill Broadway, New York 7,
Japanese Stocks—Current
Corp.
Broadway, New York)5, N. Y.
data or. Federal
Ex-Ccll-O
New York.
Sept. 17-18,1959 (Cincinnati, Ohio)
'
' "
Broadway, New York 5, N. Y. Also available are reports on
\V.
T. Grant
Company and Ilollinger Consolidated Gold
Street, New York 5,
levels—Stanley Heller & Co., 30 Pine
Street;
Broadway, New York 4, N. Y.
—
which appear attractive at current
Ludlum
American Cement
other countries.
Investment Issues—Stocks
Club.
V
f}
Country
Waionda
the
at
Day
.
Railroad
Analysis in current issue of
Business Highlights"—Chase
Manhattan
Bank, 18 Pine Street, New York 15, N. Y.
Few Shares or Many?—Comparison of issues with many share¬
holders and those with a small number of shares outstanding
In the July issue of "The Exchange"—Exchange Magazine,
11 Wall Street, New York 5, N. Y —20c per copy ($1.5.0 per
year). Also in the same issue is a study of the nation's
shareowners and an article on capital gains tax policies of
*
Field
Iowa Investment Bankers
Co., 74 Trinity Place, New York 6, N. Y.
Allegheny
N. Y.
America
%
(Des Moines,
Iowa)
>
Younge
a
.
19-20, 1959
Aug.
analysis of
,
International
Express
&
Yield
Europe and Latin
"Latin-American
55
Club, St.
Clair Inn and Country
Clair, Mich.
■
Canada.
Gap—Discussion—New York. Hanseatic Cor¬
poration, 120 Broadway, New York 5, N., Y.
*
Equities for Investment—Suggested issues arranged accord¬
ing to industry—Gude,. Winmill & Co., 1 Wall Street, New
Limited;
Cameron
Analysis—Saunders
Y.
Coppers, Golds and Base
Corporate
an
Toronto, Ont., Canada.
%
Also
Company
Also available is
.
able in current Foreign Letter.
Candidates
Aug. 14-15, 1959 (Detroit, Mich.)
Basis Club summer outing at St.
Conti¬
What Is the True Interest Rate for Long-Term Governments-
—
Company, 15
Freightways,
Banking,
Consumer
of
School
University of Virginia.
reference to As¬
P. LorilJard.
Review—First National Bank of
Chicago, Dearborn, Monroe & Clark Streets,
Burnham View
Consolidated
Inc.,
Street, New York 5, N. Y.
Street, New York 5, N. Y.
a,nd Money Market
Transport
(Charlottesville,
9-21, 1959
Va.)
Aug.
industrial
on
Express, Inc. and Ryder System—Bache & Co., 36 Wall'
way
Co.,
&
Investment Field
in
i
Cooper-Jarrett, Denver Chicago
Trucking Co., Interstate Motor Freight
System, McLean
Trucking Company, Pacific Intel-mountain Express Co., Road¬
'
Ham mi 11
EVENTS
of yield—Scharff &
Street,. New Orleans
nental Transportation Lines,
48—Discussing four new projects with prob¬
able beneficiaries—Atomic Development Securities Co., Inc.,
Atomic Letter No.
•
COMING
opportunities in the area served—Utah Power & Light Co.,
Box 899, Dept. K, Salt Lake City 10, Utah.
pleased
following literature:
Street, N. W., Washington 7, D. C.
G. A.
V
Y.
Municipal
Trucking Industry—Analysis with particular
1033 Thirtieth
Thursday,yuly 9, 1959
..
12;.La.
Treasure
It it understood that the firms mentioned will be
I
5, N.
.
Co., Inc., Is Wall Street,
Bonds—Analysis
Incorporated, 219 Carondelet
Free
—
Co., Inc., 52 Wall Street, New York 5. N. Y.
Rail Stocks—Bulletin—A. M. Kidder &
Tax
figures
Utility Common Stocks—^Comparative
Saxton &
and Financial Chronicle
no
"Actually,
they
are
such thing.
"This bill would lower the taxa¬
tion
on
commercial banks, and in¬
the
crease
thrift
taxation
institutions,"
bank leader said.
of this bill are
advantages
and
to
are
on
mutual
the
savings
"The supporters
seeking competitive
for
their
institutions,
ready to 'soak the saver'
gain those ends."
Volume
190
Number 5862
.
.
.
The Commercial and Financial Chronicle
(109)
Committee
From
gave
luncheon
a
Washington
'y
Senator
was
Capehart,
Indiana,
brash enough to ask him what
vince
should
the
R
i
u s s
yn s that
old
Supreme
used
to
Court
be.
isn't
either
in
its
decisions and its personal conduct.
Back in the days when Qoosevelt
try¬
was
to purge
the' Court,
finally
and
ments,
there
mere
of
unfair
an
was
was
effort
no
the Midwest
he
question,
Poland,
Bulgaria,
countries
wanted
them
It
there, he
business.
take
care
had
everything, has all kinds of
is self-sustaining, self-
never ran
into
Su¬
a
Justice
at
Ohio —James
Carlisle
all, Russia could
Russia, he said,
Stock
to China when he knows very
well that it is against the
policy' of
go
government to grant passports
to that country-.
Chief
the
Justice,
Charles
with
and
guests,
author
President
of
other
that
Now Inv.
Vice-
on
damned
a
name
for the Presidency
over
himself. The
feeling against Nixon
began in the 1950 campaign when
After
running
the
Gahagan Douglas.
campaign Nixon said
not helped him
raising the Com¬
munist-association issue against
Helen and this was something too
that
for
Warren
commentary
when
to
J.
Dred
something
on
AiVIN
is
was
nor
poli¬
against
friend
a
LOU
did
Nixon
to
Vice-Presi¬
as
Warren
for
Supreme Court judgeship.
His
was
suggest
influence had
Warren
R.
no
little to do with
Supreme Court is less in¬
a lot of ways than were
Pearl
of
before
Just
Men.
Old
Frankfurter
Harbor,
the
into
nose
every
the
G.
R.
he
As
government.
New
Deal
he
was
Head Office: 44 Wall
ones
on
114
the
into
the
new
a
tered
Klux
Klan.
shell and lives
life.
He
has
a
He
most clois¬
remained
de¬
The
Senate
Relations
T.V.
...
.
.
.
.
.
.
.
.
.
.
„
.
.
....
.
.
.
.
.
$
U. S. Government Insured F. H. A. Mortgages
HAUGE
State,
.
935,870,289
767,451,259
.
GERL!
100,555,743
,
Municipal and Public Securities
259,909,528
Chairman, Finance Committee
EUGENE
ROY T.
Bank
6,023,400
HOOPER
S.
Other
President
Securities
.
.
..
.
29,161,998
.
Loans, Bills Purchased and Bankers' Acceptances
HURIEY
1,249,341,916
......
Chairman end President,
Curtiss-
Mortgages
Wright Corporation
OSWALD L.
Simpson Thacher & Bartlett
.
.
28,507,750
...
..............
Customers' Liability for Acceptances
LEITHEAD
BARRY T.
.
Banking Houses and Equipment
JOHNSTON
Accrued
.
.
-
...
.
.
KENNETH
F.
13,523,1 10
-i„
MacLELLAN
23,402,7^6:
54,832,510
.
Interest and Other Resources
President, Cluett, Peabody & Co. Inc.
$3,468,580,299
President, United Biscuit Company
of America
JOHN T. MADDEN
L
LIABILITIES
Chairman, Emigrant IndustriaiSavings Bank
george
Deposits
Mclaughlin
v.
Vice Chairman,
Triborough Bridge and
.
.
.
$3,080,013,319
.
Outstanding Acceptances
.
.
.
.
.
...
..
56,747,984
...
.
Tunnel Authority
Liability
WILLIAM
G.
RICHARD
S.
Other
*
^
Acceptances and Foreign Bills
Liabilities
.
V.
.
...
23,805,523"2,048,398
...
Discount, Interest, etc
Reserve for Possible Loan Losses
Dividend Payable July 1 5,
SARGENT
B.
on
.
.
27,304,591
48,584,888
................
ROBINSON
E.
Chairman of the,Board, Coca-Cola Company
HENRY
Endorser
Reserve for Taxes, Unearned
REYNOLDS, JR.
President, Reynolds Metals Company
WILLIAM
as
RABE
Chairman, Trust Committee
1959
.
.
2,771,450
.....
Capital Funds:
^
President, American & Foreign
Capital
Company, Inc.
HAROLD
V.
Chairman, The Home Insurance Company
REESE
H.
G.
HUBER
'
*
227,304,146
$3,468,580,299
''
"
Applicable to cover such future loan losses as may develop.
None
>
are at present
known.
WETENHALL
President, National Dairy Product:
Corporation
United
<■
secure
C.
26,524,146
.
■*'
'
f
WALKER
President, Electric Bond and Share Company
J
.
$100,780,000
100,000,000
Undivided Profits
TAYLOR
Chairman, Union Oil Company of California
GEORGE
(5,039,000 shares—-$20 par)
Surplus
SMITH
VON
States
Government and Other Securities carried at $148,886,557 are pledged to
public funds and trust deposits and for other purposes as required or permitted by 'aw.
ELM
Honorary Chairman
«*
Foreign
Condition, June 30, 1959
Cash and Due from Banks
U. S. Government Securities
GABRIEL
HENRY
member of the bench.
*
YORK
RESOURCES
President, Gerli & Co., Inc.
went
cidedly to the left in his opinions,
He and Douglas will usually
be found voting together.
Doug¬
las was divorced after becoming
*
NEW
DANA
M. FRANKLIN
PAOLINO
the bench, have their par¬
Ku
GREATER
IN
v
newspaper
too.
a
OFFICES
President, United States Lines Company
here,
friends, except
for Justice Black.
He got ybadly
burned with publicity shortly af¬
ter his appointment, with the pub¬
licity that he had been a member
of
Street, New York
BRUSH
CRANDALL
Power
All the justices, except
ticular
Building. He was formerly witb
J. A. Lynch Co., Inc. of St. Cloud,
Company
Trust
Chairman, Board of D/rec'orj
JOHN
there and everywhere,
f
become associated
Steichen & Co., Baker
HORACE C FLANIGAN
was
conservative in his opinions.
more
•'
John
Lynch has
with R. J.
!_.
—
manufacturers
branch
has
grown older, he has become less
accessible.
Also, he has become
In
'
.
Statement of
formal in
sticking his
D.
Nuclear Energy Writers
Association for the 1959-1960 Fis-
service rendered Warren.
Nine
MINNEAPOLIS, Minn.
Chairman, Dana Corporation
getting the job.
undoubtedly had a pur¬
pose.
He wanted to get him out
of California politics, out of his
way, so to speak. Nevertheless, it
The
With R. J. Steichen
(Special to The Financial Chronicle)
Vice-
cal year.
BLACK, JR.
CHARLES A.
Nikon
a
elected
was
Exchanges.
Chairman, George A. Fuller Company
of
strange, however,
things
the
Atomic Development Mutual
inc>
F.
the
Corporation
famous
that he
should harbor such bitter feelings
against Nixon.
One of the first
dent
of
Planning Corporation
Chairman, American Home Products
in
but
neither for
anything.
He
everybody.
It
since the
Scott decision,
was
meeting
to
President, C. R. Black, Jr. Corporation
Chief
became
Warren
decision
tics, he
the
urer,
presjcjent
BEINECKE
CLINTON
get
Justice; he was instrumental in
bringing about the most contro¬
versial
annual
and Boston Stock
Nuclear Energy Writers Associa¬
tion in New York, Friday, June
Stock of Federal Reserve
is
It
was
the
Edward
added
Co., 15 State
Street, members of the New York
Incorporated, 2608 El Paseo Lane,
has been changed to Investment
was
controversial
the
At
Stei¬
—
been
staff of Estabrook &
Nuclear Writers
Jack
Calif. —
TnbsFqnd,
of Rudd & Company,
into.
.
O'Rourke has
*
Senate
Warren had
bit: Nixon
a
for
Helen
the
BOSTON, Mass.
Company
trying to build
known, but it seems
though a man in his dignified
position
could
have
restrained
against
Ex¬
With Estabrook & Co.
Exchange.
26, 1959, Stephen Hartwell, Treas-
Chairman, The Sperry and Hutchinson
as
that
Stock
(Special to The Financial Chronicle)
SACRAMENTO,
firm
Co.,
mem¬
President, Paramount Pictures Corporation
EDWIN
liar
has been long
was
R. J,
&
Building,
Midwest
calls
his body.
The dislike of Warren for Nixon
he
—
the
change.
Named Officer of
Planning Gori
DIRECTORS
news¬
he
book
a
Nixon
and accused him of
Nixon up
correspondent
of
affiliated
now
Siegler
BARNEY BALABAN
E.
became so aroused at a
party given by a news¬
papermen
bers
Exchange.
Hutchinson is with
our
cocktail
New York Stock
is
N.
Evans
the soul of dignity.
have one of the mem¬
Justice Douglas, trying to
paperman
Exchange,
Stern, Frank, Meyer & Fox,
Angeles, also members of the
(Special; to .The Finakcial Chronicle)
was
Now you
Warren,
Los
York
Edward
Union Commerce
Bar?eron
cocktail party. •
The Chief Justice, Charles
The
H.
New
now
Schmelzer
,r
Ohio—Lawrence
a
hifigton
Hughes,
After
of itself:
materials,
Court
preme
bers,
C.
■■■■
anywhere.
is
for
chen & Company, Baker Building.
of the United States
was none
of the New York Stock
Company
MINNEAPOLIS, Minn.
and
One
Was
;
,
.
group
citizens
C.
with
^
.
-
CLEVELAND,
Dominick & Dominick, 14 Wall
Street, New York City, members
With R. J. Steichen
in Rumania, Czecho¬
said.
austere
(Special to The Financial Chronicle)
For Dominick Firm
Weixel is with The Ohio Company,
51 North High Street, members of
Deputy- Minister
incensed and made
slovakia,
was
Edward Siegler Adds
Correspondent
over-
:
'
COLUMBUS,
S;---;;/
f
and
(Special to The Financial Chronicle)
the other Eastern European coun¬
tries because the people of those
retire¬
no
Russian
Russia
through death
cockiness
With Ohio
they
replied, and should not have; beeij I
asked. ■>':
V i:: Vr'Vv W'
succeeded
of
confidence.
to disguise his feelings.
It
ing
and
The
one
con¬
States would
withdraw from Europe.
was
was
withdraw to their borders
and then the United
it
Coast
Capehart said his whole attitude
of
the United States could do to
By C. BARGERON
"what
supporting, and "we can support
ourselves, we can defend ourselves,
and we can protect ourselves."
„
ington.-''
AheadoftheNews
The
for
First Deputy Premier Kozlov of
the USSR when he was iii Wash¬
e
Representative Offices:
London, Tokyo, Rome, Frankfurt a.M.
Member Federal Deposit Insurance
Corporation
The Commercial and
(no)
io
.;
.
A-
•
of
normal
In
Street for countering the upsetting
England and, thus, keeping equities on
Throgmorton Street steady to firm. He notes less evidence of
U. S. buying and selling as against a few months ago, which
at most was marginal, and outlines the reasons for
Wall
Street s influence on the London Stock Exchange
albeit he
finds there is no reason why this should be so. The columnist
concludes that London rises will be more pronounced than
those in Wall Street and falls will be less pronounced until a
Eng.—-During the last
week or two the London Stock
Exchange was 1 holding
its own
remarkably well in face of influ¬
anything
were
row
S.
U.
Much
So
Not
or
was a
printers'
strike, by it¬
self
more
Henry Grady Weils, Jr.
Forms Municipal Firm
buying and
not been so much in
lately in London as it
few months ago. Earlier this
reaching pos¬
Co.,
York,
con-
What is more im-
demand.
sumcr
curtail
to
liable
is
bags, etc.,
in which com- than otherwise. It is not so
kind are the material effect of the
gravely
packed might
retail trading.
handicap volume of buying or selling orders^
cabled from New York that mat-
in
ed
serious
the
setback
of
absence
in
American ^operators
advertising facilities.
they are doing, even
to
work
nism
&
which
he
been
to be at least a
possibility at the time of wr.ting
that the strike might spread over
other industries, as indeed it has
already spread over the manufac¬
turing of printers' ink. Transport
in particular is liable to become
involved as a result of the refusal
that
^
aclual vo1 ume
New
for
York
an
is
with
Graham,
Avenue.
,
Co.,
1000
.
Joins Newhard,
help solve the bal¬
problems
ST. LOUIS, Mo.
the European Pay¬
—
is probably with the
of
Newhard, Cook &
&
Olive
America could make a
real
Catherine E.
been added to the staff
payments problem that
balance of
Cook
(Special to The Financial Chronicle)
as
countries. It
Co., Fourth
Streets, members of the
New York and
Midwest Stock Ex¬
changes.
start."
office
York
Harris
of
Savings Bank.
+know^ +that
though they
A
This announcement is
Com¬
in 4943 joined the New
and
pany
1936
in
&
Parsons
to
buy,
any
neither
an
offer to sell, nor a
of this Stock. The offering
solicitation of an offer
is made only by the Prospectus.
&
Trust
Not
'
a
New Issue
past president of The Munici¬
pal
of
Forum
The
of
nor
York,
New
Wells also has served
as
Mr.
483,322 Shares
gover¬
a
Club
Municipal Bond
of New York.
even though
of orders from
their volume are
Taft Broadcasting
Impact of Common
Market
Latin
Company
Analyzed
Common Stock
on
America
least, the
of
Chase
Manhattan
Bank
transport workers to handle London Stock Exchange looks to¬
study
newspapers printed abroad. Morewards Wall Street as a barometer
sees
short-run
negligible and
over, the striking printers display
lndlcatirlg the business trend in
long-run beneficial impact of
an
unusually aggressive temper the t-llU,?d States; In spile of the
ECM on Latin America. It doubts
staging
a
numbei
ot
violent eXpericncc of recent years which
scenes, the frequent recurrence of pr£ved
that. business trend
in Latin America chances, however,
which
possibly
on
larger
scale grdain need not necessarily fo I for evolving its
own
common
would not help Stock
Exchange. ,ow that o£ ,he United stateSi con. market
when, for example, if has
sentiments.
siderable importance continues to
as
yet been unable to set up a
The international political out- be
attached
to
any
indication
look is not very encouraging.
On pointing towards expansion
payments mechanism.
or
the eve of the resumption of the contraction of American business.
What effect will the develop¬
Geneva discussions the prospects it is widely assumed that, should
of an agreement over Berlin are inflation
develop in the United, ment of the European Common
no
&
Bache
of
in New
career
York
consic!erable
Last but by
staff
Baltimore
Porter
business
G.
small, potentialities
increase in
the
—
been added to
Jr. has
his
started
Jr.
Wells.
Henry
thousands
of
miles
away
while their British opposite num,
the
t
Qr it is p,r_
assuraed
Tumy,
Mo.
CITY,
KANSAS
W.
payments mecha¬
a
as
are
There appeared
Bache Adds to Staff
(Special to The Fin \ncial Chronicle)
Ebert has
Latin
depart¬
M. Adams & Co.
helped the European
He
formerly
trading
ments Union
has
president.
Market Treaty.
payments
effectively
vice
a
of
Co., U. S.
&
was
Latin America has yet
out
that will
ance
the
of
ment for E.
for
of
of the Common
Moreover,
Wells, Inc., of
retail
adequate
of
1949
Andrews
ters as the fact that New York is
trade
would
discourage
capital buying or selling British stocks,
expenditure which is only just
This circumstance indicates the
getting into its stride as a result degree of prestige that Wall Street
of the recovery from the recent enjoys
in Throgmorton Street,
recession.
The issue of equities For some-inscrutable reason it is
and loans is likely to be suspend- widely assumed
in London that
Any
in
er
much
actual
co-found¬
was
some half dozen to a dozen favorite equities.
It seems that the
articles of most
.,
Wells
Mr.
American
the
mercial
by
manager
"Business High¬
dgstinies^that inspired the framers
He
Building.
Com¬
oil'
"There is not the
unity—of joined
says.
sense
president.
portant, should the strike become presence or absence of
prolonged the resulting shortage buyers or sellers tends to affect
of
labels
and
various
printed markets
psychologically rather
boxes,
light"
same
far
very
America,"
Latin
Grady
Wells, J t
is
Market
that en¬
as
European
the
for
visaged
full
that
now
L. Phipps
S. Jones
June
Bank
integration
economic
mon
by
clear
is
Preston
With
Market
an¬
nounced
Henry
in
substantial
relatively
times
through non-appearance of newspapers
been
has
Market
possible for Latin America.
Doubts Latin America Common
bonds
enue
arrangement
such
some
the European Common.
will be
and re*
state, municipal
in
deal
case
any
general effect of Wis on some
commodities will
lessen the increase of such
whether
as
New
and
Inc., 70 Pine Street,
N. Y„ to underwrite
American
transactions never accounted for
the national
Paul Einzig
more than a fraction of the total
economy. For
turnover on the London Stock Exone thing, the
reduction of advertising facilities change, even though they were at
In
factor.
affect
to
ble
associated
become
has
Phipps
that
to
be
Wells &
Formation of Henry G.
In more recent weeks, on
the other hand,, one only comes
across occasional references to that
sibilities lia¬
London
in
rises
that
is
prices.
nant with far-
be
patterns.''
Latin-American
Activity
hardly a day passed on which
commentators did not
make reference to the influence
of American operations on equity
affair, is preg¬
will
there
shifts in the trade
"It
financial
tively small
the
pronounced than
those in Wall Street, and falls will
be less pronounced until a state of
equilibrium is reached.
year
rela¬
a
Thus
(Special to The Financial Chronicle i
PORTLAND, Oreg.—Preston L.
market
be
will
evidence
The
the Com¬
a
either
happen
selling has
specu¬
lators.
yet, American
And
ing to invest¬
formerly
to
Phipps With
June S. Jones & Go.
_
but encourag¬
ors
Thursday. July 9. 19JS
.
spectacular movement exports to Europe. "However," the
unaccompanied bank's report continues, "Latin
America is still in a position to
by a similar movement in the
ex pa hd
E uropea i i exports who re
other market. The adjustment will
her
natural
advantage
in soil,
.probably
take
place gradually
climate and technology can over-,
over
a
long period, without pre¬
ride the tariff walls."
venting the basic tendency of the
The Chase Manhattan -publica¬
London Stock Exchange to follow
Wall Street.
What will probably tion then turns to the question
in
previous Fridays.
n®
that
areas
"Business Highlights" adds
between yields may nar¬
down sooner or later, but not-
through
the previous day. This is so even
on Mondays, although sentiments
in Wall Street might well have
changed since closing time on the
which
some
The dis¬
likely.
appear
now
exports
other
to
Ma diet.
mon
such
crepancy
reached.
equilibrium is
LONDON,
ences
not
AOT
went
sharply conflicting trends in Wall
Street and Throgmorton Street do
occurring in
new
all
more
however,
ractic e,
p
to
tariffs Will tend to direct
erential
the dif¬
between yields
proportions.
ference
credits Wall
Einzig
.
Preston L.
Wall ports from Latin America. Pref-*
in
fall
a
Street, in order to reduce
E1NZIG
By PAUL
of
—all
in
prices
London
in
rise
absence
the
Throgmorton Sheet
factors
.
-
bananas, cacao, tobaccp and sugar
competitive with major ex¬
Street, or for a
Wall
in
fail
a
sharp
Affects
How Wall Sheet
Dr.
Financial Chronicle
'
means
$1 Par Value;
Price $15 per
Share
-
viewed
not
the
with
possibility of
tends to
a
and
during
Britain
states.
deadlock and rience
the summer
induce many investors to
scares
war
optimism,
a
another
would also expe-;
boom. On the other hand
setback resulting
from
disinflationary
measures
by
to have
increased, which again is a reason
for
investors
to
be out
of the
market, even though Conservative
prospects
are
now
considered
more
hopeful than they were a
few. months ago.
In
spite of this, equities have
steady to firm.
The main
cause for this has been the influof
the
steady
to
firm ten-
when all
Even
on
a
slump
occasions
operate
sterling during the past 12 months
other influences
the
opening on the London Stock
Exchange usually reflects the Wall
The
Street
tendency at closing time on
that there would be justification for stable prices in the
London Stock Exchange in face
means
Copies
benefit
new
—
issue! of
Bank's
some
Highlights."
Highlights"
grow
less
"An
Market
*
of
Treaty
that will directly
Latin
affect
the
Glore, Forgan & Co.
M
or
a n
America
Overseas
is
Carl M. Loeb,Rhoades &Co.
"These
a
11
a n
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
that
the
Stone & Webster Securities
Corporation
Territories
Dean Witter & Co.
tar¬
barriers." The Chase
publication says.
Territories produce coffee,
quota
W. E. Hutton & Co*
Lehman Brothers
Kidder, Peabojy & Co.
of France, Belgium and
will be able to export to
h
Goldman, Sachs & Co.
Common
the Common Market with no
iff
c
Eastman Dillon, Union Securities 4 Co,
Blyth & Co., Inc.
(AOT's)
Italy
Ripley & Co.
Incorporated
rapidly than
aspect
Associated
securities in such State.
reports
exports to Europe, par¬
will
these
Harriman
"Latin-Ame|i-
ticularly food and beverage prod¬
ucts,
lawfully -offer
on
Manhattan
Business
obtainable in any State
such other dealers
arrange¬
the current
review,
may
Prospectus are
such of the undersigned and
Latin
says
quarterly
~can
run
oi the
from only
be
Chase
ment,"
The
to
the
balance—from
will
impact
develop
in Wall Street,
there they have in the past, while min¬
would be a slump also in London, eral exports should gain.
In theory there is no reason why
AOT Will Benefit
this should be so.
After all, the
opposite direction, the in- there is no justification any longfluence of Wall Street is decisive.^ er for such a wide gap.
Which
in
stands
America
that
that, should
^
as
short-run
"The
"Business
level of yields on equities in the
United States is some 2% below
the corresponding figure in Britain. Owing to the consolidation of
dency in Wall Street. The degree
to which Throgmorton Street follows
Wall
Street is
indeed remarkable.
.it:
Expects Change to Cross the Ocean
jj. js certain
been
ence
sumption seems to be grossly exaggerated.
But the fact that it is
widely held goes a long way towards confirming
Lathi-American
on
the negligible in the long
liquidate their commitments be- United States authorities is exfore departing for their holidays, pected to affect British economy
The chances of a general election in a similar direction,
this asin the early autumn seem
have
Market
trade?
jf*
AW
July 8, 1959.
White, Weld & Co,
Number 5862
190
Volume
.
,
.
The Commercial and Financial Chronicle
v
over
Stewart-Warner
Corporation:
Diverse and Dynamic
By DR. IRA U. COBLEIGH
Enterprise Economist and Author of "How
A
rapid review of
a
distinguished
*
through diminished dependence
Many
people
first
time
we
ever
mo¬
tored
at
sixty
miles
an
hour
music
o
appreciate
quality of
pects,
essential to
u
nd erstand
that
the
lier
U.
Cobleigh
are
oKjhe
company,
major dependence on the
trade, have disappeared;
motor
and there
are
be
the
is
advertised
Alemite
■:
Alemite list
over
makes
for modern
;;
it
radio
The
Bassick
famed
some
plete
is
to
opportunities
best
m.
vvhat
what
1
c
i<?
in
is in
addities
is
the year, we
stantial rise
has
a
broad
trim
and
c
net
variety of
appliance
16%
over
would
1958.
expect
from
the
business
in
-
$3.19
three
divisions
and oil fired furnaces for.
homes, air conditioning units
and systems produced by Stewart-
Heating and Air CondiDivision; heat exchange
for .-aircraft
and
a
new
Instant Heat passengar car heater
.
.
{rumored to go into the new Cor-
vair) made by South Wind; Hobbs
meters, and Stewart die cast products.
What
from
Office: 5 5 Wall Street, New York
78 Overseas
Branches,
Offices and Affiliates
•
Banks
financial
are
no
are
as
of June 30, 1959
'
•'
V.V.
.-
Deposits.
1,226,842,463
.
Liability
491,200,554
.
...
.
6.
.
4,078,243,244
.
85,191,570
Federal Reserve Bank Stock.
.
.
.
.
.
.
.
-
V-
"
•
.$6,966,148,289
...
.
Acceptances
on
and
Foreign Funds Borrowed
.
.
.
.
.
,7 •> Equipment
>
.
Bills
88,029,746
8,525,700
.
Unearned Income
Taxes
.
.
18,600,000
.
Other Assets
.
with
7,000,000
.
.
.
Capital
Overseas
.
.
.
.
..
.
.
20,260,007
.
.
.
.
.
.
.
.
13,360,143
.
.
.
Surplus
,
.
.
.
,
.
•.
.
•
.
.'
.
.
.
.
.
.
-
Undivided Profits
Total
$7,871,134,909
Figures of Overseas Branches
are as
-
99,385,774
719,385,774
-■
$7,871,134,909
..........
required
are
pledged
permitted by law.
or
insurance corporation
Chairman of the Board
President
HOWARD C. SHEPERD
preferred slocks—merely 1,633,000
shares of common which, in the
last four years, has ranged in
price
from a low of 27J/4 .to a high t>f
53%. So, at around 52 currently,
8,280,000
of June 23
Public and Trust Deposits and for other
pun^wses
member federal deposit
or-
44,856,868
,
380,000,000
.
.
$5 2'X. 768,362 of United Stales (government Obligations and S12.622.250 of other assets
to secure
.
.
1—-—
;
.
$240,000,000
(J?,000,000 Shares- $20 Par)
46,327,774
.
.
.
Shareholders' Equity:
and
.
35,908,532
Accrued Expenses
and
Dividend
...
.♦•.
.
Items'in Transit
Branches
.
banking
n'tkrnational
Total
*'
102,204,164
....
Customers' Acceptance Liability
-
"
•*.
1
poex-
bonds
$1,781,904,990
.
.
Bank'J'remises, Furniture
dividends, STX has paid,
interruption, for 20 years,
There
•
Reserves:
Corporation
quality
and
•
LIABILITIES
Municipal Securities
and
Other Securities.
per
JAMES
Vice-Chairmen
RICHARD S. PERKINS
DeWITT A. FORWARD
S. ROCKEFELLER
ALAN H. TEMPLE
FIRST
Stewart-Warner could scarcely be
as selling at an inflated
level.
year
of
Working capital, at the 1958
end, was at an all-time high
NATIONAL
CITY TRUST
$37,332,431, equivalent to $23.17
per
share
on
the
common,
COMPANY
e
Stockholders in Stewart-Warner
have fared well in the past five
Head
$1,COO invested in StewartWifrner at the end of May, 1954
Office: 22 William Street, New York
-
years.
-
Affiliate of The First National City
would
administration of
stock
is
held
in
•
•
•
Bank of New York for
separate
functions
trust
•
•
Statement of Condition
substantial
by all key members of
management; and, totally, by over
15,000 shareholders including
many of the 6,700 employees,
Among elements calculated to
brighten the year 1959 .are fullyear
earnings from the Bassick
plant at Spring Valley, N Y * acquired last year, and from new
•
•
•
•
•
•
•
,.v#
•
t
amounts,
manufacturing facilities at Beliein Stewart-War-, ville, Ont., which also went into
ner a panoramic product mix, and
operation last year. The quite new
a
diversification so broad spread Alemite
industrial paint spray, * a
that for the first quarter of 1959
unique new aircraft landing dethe furnishing of original equipvice, the potential earnings from
ment to -passenger car manufaccomplete
panel
board
and
car
turers accounted for but 9%% of heater
units for a new "compact"
sales; and for trucks, but 8V2%.
car
(rumored to be the Corvair)
All of this sets the stage for new" add zest to
the picture at Stewartmagnitudes and stability of earn- Warner. And the radio advertis¬
ing
power
at
Stewart-Warner, ing is the most intense in the comThus
as
of June 30, 1959
ASSETS
Cash
and
Due
Banks
irom
LIABILITIES
.
$
.
U. S. Government Obligations
.
State
and
Loans.
.
.
.
.
.
.
.
.
.
33,55^,659
Deposits.
66,353,131 '
u
'
Municipal Securities
Other Securities
,
'
.
.
.
....
$100,362,891
Reserves
25,980,941
6,791,336
(Includes Reserve for Dividend $721,443)
2,859,914
.
Shareholders' Equity:
3 598 547
.
..
you
is
see
significant,
however," is the improvement in
cost
controls, bringing down a
even
Ill
just
small
products
Due
and
.State
For
sub-
a
have grown to' $3,423 by
the end of May, 1959. Of this total
mentioned each accounts for increase, $530
represents cash divroughly 15% of sales.
idends received, and $1,893 the
Rounding out the product line- increase in market value.
The
tiobing
Co.,
regarded
mill-
produces, as well, complex electronic systems for use on
railways and air lines, Datafax
facsimile systems, and electronic
package sortation systems. *
Cash
IJ. S. Government Obligations
I
cedent.
tronics,
Warner
&
CITY BANK
••
The
show a
to
sition of Stewart-Warner
electric fuel pumps.
Stewart-Warner Electronics does
gas
connected
Rothschild
FIRST
ASSETS
48%
up
expected
Capitalization
mentation, instruments for household appliances; and piston-type
are
F.
now
vonshire Street.
long illness.
a
Statement of Condition
The present rate is $2 in cash, and
2% extra was declared in stock
last year. Custom has been to pay
out
not
only the
speedometer but, inpanels, tractor instru-
last
L.
June
Mass.—Lawrence. S.
is
.
at
About
turns
These
Halpern
,
corporate
Sff1
°P~
store
for *<5+
Stew-
Loans/.
without
Stewart-Warner Instrument Di-
considerable
(Special to The Financial Chronicle)
BOSTON,
Greater New York
other
share reported last
year. Our guess
be $4 a share on the basis
0f which STX
(The New York
Stock Exchange
this
been
hardware.'
a
Joins L. F. Rothschild
78 Branches in
symbol) is selling
only 13 times earnings — remarkably low for an equity of
;
traditional
corporated, specializing in mining
of New York
Hear/
remain
in
possibly a 5% year-end dividend
in stock (5% was paid in 1955-57).
-strument
The
we
machines, hospital equipment
supermarkets; plus a new.line
.developed; especially for the Post
Office Department.
Bassiek-Sack
vision
:
following
NAT I OX A I,
would
ness
:
27th
more
pany's history.
of
lubricants
will
be
beamed
21
and
Premises, Furniture And"
Equipment
.
z Other
\ssf.ts
Total
$142,073,495
..
.
$10,000,000
....
20,000,000
.
*■
Total■
.
.
.
4,919,268
.
.
.
$63,209,789 of United States Government Obligations and $26,482,116 of other assets are pledged
to secure Public and Trust Deposits and for other purposes required or permitted
by law.
mlmber federal deposit insurance corporation
RICHARDS. PERKINS
week
.
Undivided Profits
5,976,607
■
'.
.
.
2,845,696
.
chemicals
a
Capital
Surplus
.
Chairman of the Board
times
900,000
.
;> Bank
1959
The Alemite
line
'* Federal Reserve Bank Stock
'
*■
.
de¬
securities.
Los
away
trading
con¬
up
1958, and
for
division
to
out, in cash, about 54% of net. So,
for this year we should expect
maintenance of the $2 rate plus
furniture
Angeles, Calif., passed
the
&
Av Norman Bennett, partner in
Stern, Frank, Meyer &
with
of John J. O'Kane
Jr.,
Co., 42 jjBroadway, New York
City.
Mr.| Cosentino was for¬
merly with Wm V. Frankel In¬
logic in the view¬
•
,
1
a
half
-and
.
alert
our
first
for decades.
only the most comof rolling equipment
division makeg
associated
partment
in
furniture, but
products include industrial heavy
duty casters, and casters for busi-
•
much
Joseph A. Cosentino has become
flamboyant or
performer.
But
A. Norman Bennett
oppor¬
shall
we
do
over
for home and office
*
a
found in mature; investment
type
equities of quality.
,
expansion
in which
to
best
not
line
field
engaged—and
widely
fore casters
There
is
be
level,» perhaps
a
look at
STX
might be .worthwhile.
It offers
art-Warner (and its
shareholders)
in 1959?
The year started well
with first quarter sales
motors, transmission
and
radiator; it makes
complete centialized lubiicating
systems; industrial material-handhng pumps; air line lubricators,
filters
and
controls, automotive
lubricants and chemicals,, and
wheel aligners. Alemite accounted
for about 20% of 1958 sales.
/
further
networks.^Q% improvement
quality
cars
for
great
tinue
timfsm
timism
might
good idea to jot down
the product lines.
The
known
;
this
a
.of
market
^
industry.
have
wltl.
complete.
to-document
We
.
nr!orp«
pnmnipfp
morp
more
Just
volatile
there
John J. G'Kane & Go.
fields.*'
today few industrial
corporations whose diversification
ic
is
.
major
every
ear¬
characteristics
its
,.
tunities
Ira
cyclical
and
to
11
Joseph Cosentino With
gain
should expect Stewart-
one
Warner
pros¬
today, it
is
capital
point that STX is not overpriced
currently, and that it possesses
many
of the •elements usually
nett
Archambault
exudes
confi¬
dence: "For the longer
term, I am
most enthusiastic about our
common
stock
No
radio!
of
been
Stewart-War¬
ner
expectation
time.
'..For. those investors dubious or
hesitant about making stock mar¬
Obviously management here has
doing a good job, and the
Chairman and President, Mr. Ben¬
But,
the
on
mate
over
ket purchase at the 640 Dow Jones
.
Warner speed¬
t
trend in earning power; a reward¬
ing.. dividend policy; and a legiti¬
i
were
relatively well sustained'at
$5,144,307.
%
Stewart-
ometer.
abput
a
sturdy balance
delivered $4,080,810 to net earn-.: 'management;
diversification
i'ngs. Yet in 1957, on net sales of sheet; ; intelligent
only $112 million, the net earnings', into "profitable new product lines;
a
were
simple capitalization; a rising
$5,985,157; and in 1$58, a
■depressed year in which
sales
fell to $91.4
million, net .earnings
we
got the
reading
from
a
power
of
sales to net earnings. For exam-, vestors have always been on the
pie. in- 1953 net sales attained an prowl.for—efficient, sales minded,
all-time high of $128.8 million and imaginative and cost - conscious
Stewart-Warner
the
automotive
network
a
substantially larger portion of net* many, things that sophisticated in¬
today still think
Corp. as cssentially a supplier to the automotive industry and,'for some of
us
oldsters,
of
the
on
or
stressing particu-
company,
larly the- development and broadening of its earning
CBS
listening audience
of some 47,000,000. So if
you don't
already know about, and use, Aleniite
products
you
afe pretty
likely to, before the year is out—
that is if you listen to news,
sports
Get Rich Buying Stocks,"
to
the
290 stations to
(Ill)
—
•
President
EBEN W. PYNE
34,919,268
$142,073,495
:
with
De¬
The Commercial and Financial
Chronicle
.
.
Thursday. July 9, 1959
.
(112)
12
however, there was
MEMBERS OF CABINET COMMITTEE ON PRICE
The Time of Decision Is Now
past quarter of
i
Hitting hard against what it terms are "misconceptions" that
stimulates growth and a-small amount offers no
for
cause
already
given
Congress;
to
future
Committee
Cabinet
The
Violate
Vice
-
dent
of
legislat^vC^ction.
will
time
issue
time
to
to
on
qusetions
economic growth and
ber, Professor
m
u
o
at
are
s
steadily.
ical
Text
1
asks
made
be
for
now
as
proper
to
our
holds that the
antidote to inflation is in¬
and productiv¬
that'
creased ■efficiency
ity of the economy.
The
is
report
what
the
summary of
Administration
a
present
and
has asked Congress, Business
do.
to
Labor
In
it to
submitting
Congress, the President asks
the
recommendations
made
that
be
translated into statutory law.
President Eisen¬
of Transmittal to
Congress and of the Committee's
report follow:
The
texts
hower's
of
Letter
opinion of
Committee on Price
unanimous
Economic Growth
economy
is now at a
critical juncture urgently requir¬
ing action to forestall inflation
and insure sound
and -sustained
economic growth and progress.
Stability
:
•
future, course, qnd
proper
Eisenhower
Pres.
th
It
lor
is the purpose
of this interim
make- recommendations
action
mediate
essential
is
checked,
areas
if
and
which
inflation
is
to
indicate
to
to which
im¬
believe
for
we
be
those
to
Report
submitted
by the Cabinet Committee
Price Stability for Economic
Growth, of which Vice-President
Nixon is Chairman,
contains
rec¬
ommendations for checking infla¬
tion
that
Americans. I
to all
therefore making
important
are
am
public and sending
copies of it to all members of the
the
Report
I ling
a
f
private
levels
record
investment
and
are."at
continuing
are
rise.
to
Threat Inflation
but
morenpan
has
Committee
the
conclusion that
will
be
less
affirmative
seriously
reached
threatened un¬
is taken
ignored arc;
Prices
and
of
be
ward
commodi¬
from
and
many
other,goods
is
this
rises
at
usually
followed
retail.
While, the average level
of
breaking
into
new
high
ground.
Though
unemployment
persists in some areas and indus¬
tries, thQ. evidence of recovery is
now
ending (fiscal '59) is
Wage
made
and wage
offer
of these Securities for sale.
The offer is made
magnitude
as
to lead to price
increases.
The
We
are
Choice .Before
Corp.
as
to
the
at
evidence that
a
time of de¬
future
course
of'
forces
are
substantially
chocked, we can move forward
into
the greatest
and soundest
and
prosperity in history—a period of
economic
sustained
reasonable
$5.00 Per Share
with
growth
price stability.
Committee
The
Securities in
-
may
be obtained from the undersigned
may
legally offer these
compliance with the Securities laws of such State.
Exchange
Exchange
25 Brood Street, New
Netherlands Securities Co., Inc.
30 Broad Street
New York Stock
York 4, N. Y.
in
reflect
prices
tlie
priorities attached
by consumers
to different products: they there¬
by guide productive efforts, which
seek the
best returns for their
effort, into useful activities. Dif¬
in prices show the scar¬
cities of different raw materials,
ferences
machines, and personal skills, and
thereby
induce
managers,
who
seek to produce at least cost, to
use methods and materials which
If
abundant
most
those which
prices
are
are
and to con¬
most scarce.
regulated they can¬
accurately the relative
not reflect
priorities of various goods arjd
services, or the relative scarcities
of' various
means
o£ producing
and services. 'The result
always be—as history shows
clearly that it always has been—
inefficiency,
waste,
down
slowing
ar.d
of progress.
Furthermore, price control .in¬
leads
to wage
control.
The two together
New York 4, N. Y.
There
way,
three
rejects
is
,—
r
small amount of inflation
no
cause
little
inflation
is
panacea,
easy
no
inflation.
As
a
The Congress should make
ment intends to use all
by
means
the
to
appropri¬
protect the buying
of the dollar. Recognition
Congress of - reasonable
_
price stability as an explicit, goal
for concern;
inflation will stimulate eco¬
"a
no
control
problems the Committee rec¬
ommends that the following steps
be taken promptly:
power
a
is
the
heardf-^-w—
That
to
minimum course of action to meet
ate
That
American Stock
we
it clear that the Federal Govern¬
nomic growth;
Members
biit
misconceptions that are sometimes
That
Charles Plohn &Xo.
completely
good
than any
(1)
Effects of Inflation
thtiyundersigned
to achieve any
would do more harm
amount of inflation that
have ever experienced or are
fail
evitably
conclusions
Committee's
period of economic progress
Sfote in which
controlling infla¬
ary
(Par Value 75< Per Share)
in ffrry
of
inevitably lead to
rationing goods and regulating
caii, be stated in two sentences:
We face a serious risk^of price jobs and working conditions. The
increases which not only would resulting loss of freedom would
ultimately prove even more dis¬
.be directly harmful to American
the loss in living
families but would seriously en¬ astrous than
standards.
danger the healthy prosperity now
developing.
Recommendations for Immediate
If, on the other hand, inflation¬
Action
Common. Stock
Copies of the Prospectus
method
rejects govern¬
prices and wages
will
economy.
The
175,000 Shares
Price
Wage
goods
Us
confronted, in summary,
have arrived
cision
only by the Prospectus.
July 8, 1959
Precon Electronics
and
tion. Such controls would not only
are
such
prospects for holding the
on
expenditures tor the
ISSUE
a
as
serve
our
NEW
The, Committee
ment control of
ber,
we
an
Price
Control
other
with overwhelming
7his is. not
year;
industries (steel, aluminum,
metals, construction, rub¬
lumber,
railroads,
paper,
longshoring, meat packing, and
metal containers are anfong them)
could result in wage Increases of
While
n e
this
rates
agreements to be nego¬
summer or autumn in
many
able inflationary pressures.
budget year just starting /fiscal
'60) appear much brighter than
this
tiated
creating size¬
1 i
in
increases
for
con¬
highest fu
history and rising vigorously.
of
Differences
local governments.
settlements
have
been
recently which raised wages
wage
agreements
by, Substantially;
negotiated in earlier years provide
unmistakable:
Overall output is the
deficits.
are
county, and
have
rising in wholesale markets
been
all.
Fallacies
ten¬
alarming
an
strong tendencies to¬
increased spending by State,
There
<
industrial
prices has been relatively
stable,. prices of many .consumer
goods and services have continued
to go up in the past year.
The
multi-billion dollar
Fed¬
eral deficit of the budget year just
has
recovered
the recent recession and is
temporary inconvenience
of
and to limit the gains
the
avoid future
action
sumer
economy
some
toward
our
Danger signs that cannot
now.
noted
in
dency
ability to
maintain reasonable price stability
the
economic progress.
The
to
w
to inflation is bound
likely to experience in peacetime.
While -reasonable
stability
of
Congress to work
only an illusory balance the average
level
of prices
is
in the budget, by substituting for
desirable, variability of individual
current
appropriations
commit¬ prices is essential, ' because that
ments for later years which will
controls
the efficiency arid
the
make it exceedingly • difficult to
progress of our dynamic economy.
year
a
has
tee
the aver¬
age p rices of the things fa mi lies
buy have been remarkably stable,
For
presently directing its studies for
the
purpose
of developing long
run, positive recommendations to
increase efficiency and productiv¬
ity and thereby assure maximum
me
on
they We're before' such wide and
strong public support developed
in the fight against deficit spend¬
ing, there still remain strong pres¬
sures
for irresponsible spending.
To yield to these pressures, either
through appropriations for next
year or through authorizations for
later years, would create serious
inflationary forces. The Commit¬
ties
Current State of the Economy
Interim
and
the Committee is
President's Statement
The
Dr.
sharply
our
report to give an appraisal of the
current state of the economy, to
cause
of
Dr. Allen Wallis
R. J. Saulnier
Mitchell
Average weekly earnings, per¬
sonal
consumption expenditures,
Report
Interim
of
Cabinet
the
y
we
juncture,"
decision
is
It
"crit-
a
P.
find constructive answers to them.
Com¬
concludes
James
L, Strauss
Lewis
ing of the facts bearing on these
questions is needed if we are to
W. Allen Wal-
to
others,, but price stability will
powerfully promote the welfare
to
sta¬
v
Resistance^
its
statements
the
price
aside.
come
inform
related
people were led
expect when they put the in¬
to
Employment is* rising
and
unemployment is l
unani-
than families whose
above average.
and services that
bility.'A sound public understand¬
mem¬
are
promises
implied
people put aside income in
insurance, government bonds, re¬
tirement funds, and other forms
of saving; for when the money is
returned it fails to'buy the goods
previously submitted by
Congress.
and
public
the
average more
the
to
work
guidance of
the only non-
lis.
Taft Benson
Ezra
recomffiCTRrations
Nixon
mittee
A. E. Summerfield
And»r«on
lair
below-
or
average
Contradict
require
from
cabinet
B
are
incomes
recommendations, vail
Presi¬
technical
and
Robert
The Committee is continuing
of
manship
Richard Nixon
of
standards
our
-
harming families whose#
play by
incomes
three
me
Un¬
are
when
Each
der the Chair¬
the
on
incomes-or
whose
fixed in dollars, or
do not rise in proportion to prices.
-
which
has been
of
threat
the
families
Congress. I urge that the Cong^rbss,
consider
anew
the Committee's
on
Stability for E c o n omic
Growth
submitted
to
President
Eisenhower
an
interim
report
underscoring
a century the price
which characterize
■'[Inpiejt unjust hardships
pensions
study topics.
Price
inflation.
h
Control solu¬
general curative prescription
and outlines the Committee's
three-fold
a
n c r e a s e s
^
the report rejects price-wage
concern,
endorses
tion;
J
Thus, moderate increases even lor
short
periods cumulate in
the
course of years to immoderate in¬
creases in tluhcost of living.
Increases in the cost of living:
Ms that the continuing inflationary
situation still leaves us with the "serious risk" of further
price
Positing several examples of the current tinder-box
situation, the report singles out possibility that a steel wage
increase might lead to boost in price of steel, and to Congres¬
sional sentiment disposed toward "irresponsible spending.'1—
by Vice-President Nixon,
inflation
decline in
prices. The
periods of rising prosperity have
not been' offset at other times.
Stability, headed
by Cabinet Committee on Price
Interim report
STABILIZATION AND ECONOMIC GROWTH
Economy's Future
As to the
no
the overall average of
record shows, in fact, that for the
inevi¬
table, relax and enjoy it."
of
Federal
economic
policy
was
proposed in the State of'the Union
Message
last
January
and
re¬
peated in the Economic Report.
price
rises in the
Congress
should give
the
period of vigorous, economic ex¬ The
pansion which is now well under highest priority to this proposal.
way would not be cause for alarm
By speaking out clearly on this is¬
if these price rises,,were simply
sue
during this session it can
offsetting declines in the recent
recession. In the recent recession, effectively support the Adminisjy?
Moderate
Volume
lf»0
Number
5862
.
.
.
The Commercial
and
Financial Chronicle
'■
,
tration aria the public in the
fight
against inflation.
(2)
Not
that
only is it imperative
budget be balanced in
the
the
fiscal
month,
but
year
it
is
starting
next
important
that
in
can
the
most
Tax reforms
ways.
promote
"time
the
when' needed
accomplished",
to
looked
in
be*
in
your
the
resisted.
be
budget should be vigorously
Holding the line on exV
penditures,
together
with
im¬
proved
from prosperous
revenues
held
the
on
reduction
total
appropriations,
of
but
of
the
next
it
is
tant that the greatest
restraint and
the
in
debt
and
temporary losses
absorb
of
any
Ezra
caused
^
(3) Without firm control of the
quantity of money and credit, all
other measures to check
will
be futile,
Sound
inflation
monetary
total
our
on
out
ST.
f
r
Government
the
Federal
ourselves
LOUIS,
(Chairman)
due and payable but
any time be¬
case if the Treas¬
is forced to issue only very
short-term bonds, or if the Fed¬
eral Reserve System stands
ready
issue
a
——-
General
'
and Nathan H. Sears have become
Floyd
—
associated with
T.
Kirkpatrick-Pettis
Co., Omaha National Bank Build¬
D.
formerly Assis¬
ment, with which Mr.
been
also
added to
Sears
the
Goodbody & Co., National
East Sixth Building.
Goodbody Co. Adds
(Special, to The Financial Chronicle)
Secretary of Commerce
BOSTON, Mass.
With Bishop-Wells
James P. Mitchell
Secretary of Labor
Cafasso
BOSTON, Mass.—Harry S. Ross
-
Raymond J. Saulnier
-has
been- aclded
to
the
staff
of
has
affiliated
Goodbody & Co., 140 Fed¬
St.
He
Chairman, Council of Economic
Bishop-Wells Co., 185 Devonshire
eral
Street.
Keller &
/"
Carmen M,
with
Advisors
of
«—
become
was
formerly
Co.
X
V
WORLD-WIDE BANKING
•CHARTERED
1799
'
ury
to
Government
ing
regulations
industry.
Many
affect¬
regulations,
formulated by regu¬
latory agencies, by administrative
agencies, or by legislation, were
originally established under very
There
different conditions to protect the
public against exploitation that is
a
is
only
difference
ment's
imperceptible
an
between
issuing
equivalent
to
the
govern¬
bonds
that
arc
money,
and
the
government's just cranking up the
printing presses and rolling out
greenbacks. The government will
be forced to continue
issuing large
additional
bonds
amounts
that
of
short-term
the
are
near-equiva¬
lent of money until the
Congress
allows
the
Treasury
sufficient
,
flexibility to achieve
debt,
our
structure
a
balance in
inducing
by
people of their own .free
invest their savings in
will
to
long-term
government bonds. Thus, to avoid
inflation
it
is
essential
present-limitation
rate '
on
long-term
on
that
the
the
interest
government
bonds be removed, as the Admin¬
istration
has
a 1 r e a d y
recom¬
mended. The issue is whether we
want price stability
or
whether
we
want, in a concealed • way, to
do
the
equivalent
of
printing
money—something the American
public would not stand for if done
openly.
THE
government
pegged price all gov¬
ernment
bonds offered
to
it
in
advance of the date when
they are
due to be paid
by the Treasury.
buy at
virtually eliminated by tech¬
nological developments.
Some of
these regulations have costly side
effects, by seriously reducing productivity or causing inefficiency.
BANK
now
There
view
of
regulations
nomic
which
retard
growth.
have
the
Several
initiated
to
been
modifications
courage
on
few
a
to
-
grown
crops
by
making
materials
raw
U. S. Government
.
Obligations
manufacturers.
few
Excessive
'most
tion
in
however, the
run,
effective' antidote
is
increased
to
infla¬
efficiency
and
productivity of the economy. This
is one of the reasons why a major
part
of
our
work
is
directed
to¬
ward actions to promote sustained
economic
growth.
Furthermore,
such
growth
is
for
necessary
maintaining our increasing stand¬
ard of living and our national se¬
curity.-
V
_
Among
the
concentration
hands
of
labor
practices which are con¬
trary to the public interest. Such
practices reduce
efficiency and
productivity, and they create in¬
flationary pressures. Remedies for
these practices should be sought
through eliminating the power to
injure the public interest, rather
than through public control or re¬
view
of
the
decisions
concentrations
and
productivity of the
to
inflation
interfere far
and
A certain
raised in
with
more
productivity
amount
raised
one
in
amount
way may
devote
Public
same
Committee
another
way.
and
in¬
genuity to avoiding tax liabilities,
7
.
State, Municipal and Other Securities
1,379,789,639
....
.
.
Mortgages
*
.....
i«
484,370,717
217,525,313
•
Loans
3,770,838,031
Banking Houses
.
.
.
.
•
Customers'Acceptance Liability
Other Assets
•
•
•
.
.
.
.
•
•
•
.
.
.
85,160,409
145,848,829
.
66,925,454
...*•
$8,053,250,556
LIABILITIES
Deposits
.
.
*
.
•
Foreign Funds Borrowed
Reserve for Taxes
.
Less: hi
.
Portfolio
•
.
Reserve for
.
«
.
$7,134,234,194
.
.
.
22,774,900
.
#
*...
.
•
.
.
.
.
.
26,333,637
•
Acceptances Outstanding
Other Liabilities
•
•
.
$157,239,421
6, 9 5 7, 633
150,281,788
66,705,875
.
Contingencies
8,854,558
Capital Funds:
.
Capital Stock
$164,587,500
(13,167,000 Shares—$12.50 Par)
Surplus
.......
Undivided Profits
400,000,000
•'
79,478,104
....
644,065,604
or
functions
in
of power
contribute
impede
economic
assigned
the
$8,053,250,556
the extent
business
understanding.
the
energy
•
.
busi¬
of
progress.
the
Some taxes make it profitable for
people to
examine and report on
efficiency
than
•
.
of unions, or of collective
bargaining. The Committee, will
labor
revenue
.
$1,902,792,164
•
,
nesses,
which
Tax reform..
power
business
results in
in
are:
of
or
to
of
.
largely to com¬
large producers,
the subjects on which
working because of their
importance to the efficiency and
we1 are
economy
.
.
The expenditures
Practices of labor and business.
needed without further
delay.
long
.
.
cheaply to foreign
than
to
American
competitors
paratively
Economic Progress
the
.
.
more
and to industries only remotely
preceding three steps are connected
with
farmiiT^.
The
direct defenses against the
present Committee
will
conduct special
danger of excessive price rises. studies
leading to recommenda¬
The
Administration has
already tions for changes designed to alle¬
recommended all of them to the
viate the major inflationary ef¬
Congress. We emphasize them in fects of
existing programs.
this Interim Report because these
In
Condition, June 30,1959
ASSETS
The
are
New York
of the programs go
Actions Needed to Promote
actions
Street,
programs.
laws, price
favored
industries
own
available
of
Cash and Due from Banks
through
their
They also con¬
tribute to raising the prices that
consumers must pay for food and
for goods made from agricultural
raw materials.
Our export sub¬
sidies required by law handicap
our
Statement
en¬
costs.
American
Pine
explore
inflationary
enormous
18
.
eco¬
economic growth.
supports
OFFICE:
studies
needed
Farm
price support
Under existing obsolete
are
HEAD
is need for a thorough re¬
looking toward elimination
One
to
State
Of the above
of
$528,417,959
assets
arc
pledged
to secure
other purposes,
public deposits and for
and trust and certain other deposits.are preferred as provided
by Jaw. Securities with a book value of $28,866,770 are loaned to customers
against collateral. Assets are shown at book values less any reserves.
*
of
'
-•
,'v
■
-t
'
•«
a.
fll'l)'
Member Federal Deposit Insurance Corporation
this
the
Union
Message, is to "strive to
better public understand¬
ing of the conditions necessary for
build
a
maintaining
growth
and
price
103
was
associated.
Harvey
—
staff of
^,'City
'
Mr. Billig was
Omaha, in.
charge of the investment depart¬
(Special to The Financial Chronicle)
Gordin has
ing.
tant Secretary and Cashier of the
National Company of
CLEVELAND, Ohio
Taft Benson
report with recommenda¬
tions.
Mo.
Goodbody & Co. Adds
Summerfield
avoid
fore. This is the
OMAHA, Neb.—Lloyd A, Billig
Stock Exchange.
markets
out
(Special to The Financial Chronicle)
Staff
to
Taylor, Jr., is now with White &
Company,
Mississippi
Valley
Building, members of the Midwest
Lewis L. Strauss
employment depends
If we price ourselves
exports.
of foreign
.
we
price
jobs, and our
making
its prosperity and economic growth
bonds, other 'than those of com¬ will be
hampered." Several gov¬
paratively small denomination de¬ ernment
agencies are studying tihs
signed
for
iamliy
savings, the problem, including the Depart¬
equivalent of money. Government ments of
State, Commerce, and
bonds are the equivalent of
money Labor, the Federal Reserve Board
if they can.
always be changed into and the Council of Economic Ad¬
actual
money
at virtually face visers.
On the basis of these and
value, not only when they are other
studies the Committee will
policy requires that
Presi¬
(Special to The Financial Chkonici.e)
ON
FOR
Secretary of Agriculture
Our competitive position in for¬
eign markets.
A significant part
of
the
Anderson
Postmaster
revenue
Billig and Sears With
Kirkpatrick-Pettis
Chairman)
Secretary of the Treasury
by shifting to rates which,
by improving incentives, will en¬
izing programs for later years.' large the tax base. Studies are
Excessive
authorizations, by mak¬ now under way with a view to
ing deficits or higher taxes likely proposing changes in our tax laws
in the future, could
create per¬ at the appropriate time.
inflationary forces.
STABILITY
13
(Executive Vice-
Assistant 'to
dent
i
Vice-President
selectivity be exercisechin author¬
manent
problem
and
price
growth
Richard M. Nixon
Administra¬
revenues should
Arthur E.
tion
broad
Special
ECONOMIC GROWTH
gin needed to provide for reduc¬
year's
impor¬
W. Allen Wallis
White Adds
PRICE
be
line
the
CABINET COMMITTEE
of
the
some
-only must
you
Robert B.
possible
work
our
Respectfully submitted,
perhaps
the line
can
of
economic
than meet current expendi¬
tures.
This will provide the mar¬
conditions, would make
Not
the
on
budget, tax
h
State
of
stability.
be
can
c
for, if
soon;
held
h i
w
your
of
The
future
reforms
facets
ous
more
business
debt,
be
can
growth.
Message,
realized
tion's
tax
forward
Union
needed to
foreseeable
As part
that assignment we shall from
time to time issue reports on vari¬
on
efficient
are
economic
in
yond
recommended
stability."
things
they
(113)
i
,
rather than to devote their efforts
to :doing the most useful
the national debt be reduced.
Any
effort to increase expenditures
the levels
*
■
OFFICES
IN
GREATER
NEW
YORK
—
22
OVERSEAS
;
The Commercial and Financial Chronicle
.
.
Thursday, July 9, 1959
.
(114)
14
been estimated
It has
Marketing's Job for the 1950s
By J. W.
probable changes
production,
research and development and, in fact, all other busi¬
finance,
functions must become totally
ness
market minded if there is
1970 economy,
and dramatic
make the most of a startling^
profitable marketing. In his hypothesized
Keener anticipates
severer
competition
be
to
Mr.
-average
and
much greater responsibility for
adequate profits. He would rename Market Research to Market
Research and Development, and=apply the whole field of Re¬
search and Development more directly to the market place.
for marketing
to
assume
a
requirement of mar¬
keting is people, in their role as
customers. By 1970, we will have
many more people. I have found
predictions of
a
the
way
203
million
From
total
d
will
210
to 212 million.
would
This
or
15%.»
The
an
designate
increase
of
accumulation
40,-
000,000
W.
or
the 171,000,000 popula¬
tion level of 1957.
It foretells an
over
increase
total
in
a
years
might
we
Ihose of property
security build¬
as
and
ing—ages 40 to 59—will show a
population increase of 6 million,
also up about 15%. The years of
tapering off and retirement—ages
00 atid up—will evidence a popu¬
Keener
con-
sumers,
23%
almost
—
years
represent
about
40,~
of reproduction
and family
building — roughly
ages 20 to 39—will show a popu¬
lation growth of about 7 million,
average
be
32%
about
The
third.
consumption in
lation
the United States in excess cf the
lion,
increase
(iVz
of about
mil¬
marketing. For
male
and
certainly
dence won't change that
people.
imate
I
50-50
to
come
ratio
depend
groups, Marketing's interests turn
to the levels of their total needs
thing, there
female
hope Provi¬
one
people
that
on
and wants. Those of
approx¬
have
we
so
more
income
real
of 2%
a
year.
,
of
the
of
terms
our.
In
economy.
major
income
re¬
cipient groups, such total income
will
consist
of
taxes
collected
the
from
by- govern¬
economy
who have
measur¬
people's needs
Research
has
to
put
con¬
and
taxes
rates
than
income.
The
faster
at
National
or
of
industry and agriculture
50% increase in physi¬
cal output over a period when the
working age population—ages 20
need
tc
secure a
59—is
to
can
growing
only
met
be
mechanization
This
will
by
by
large -capital
fi¬
business,
by
with
stepped-up
automation.
and
require
expenditures
only .15%
their retained
earn¬
with new investment
national savings".
t
also
are
older
people,
however, that there is
fairly direct correlation between
taught
us,
.
With
both
.
new
we
may
is' of
forecasts
severe
That
competition. Under our Recipro¬
cal
Trade
Agreements Acts we
have become so reciprocal that,
major
hypothesized 1970
our
Taken
as
whole,
a
in
it
ISSUE
July 9, 1959
the last
in production and in market¬
We will get from 1959 to 1970
evolutionary steps, however—
wage
ing.
increases
in
filled
each
ing
with
risk,
opportunities.
What
implications
are
of
successive
the
this
Changes
Mix
Product
in
1
port
and
demand
basis
the
many
organizations and their companies,
employees, generally."
It follows from
these facts of
and for
rate of
increase, on a per capita
of more than twice
competition
alone,
potential
products used mainly by the age
For another
per
thing, there will be
capita increase in real in¬
that will support higher per
Continental Tobacco Company
Incorporated
-----
thirty
to
at
1
(Par Value
age
„
of
a
>
BEST
11,4%
or
135
omy
•
'
to
CO 7-8411
.
trends, the stepped-up
,
competitive
within
inter¬
between companies
industry, still further
tempo
an
industry competition for the con¬
sumer's
dollar,
abroad
from
tremendous
and competition
all
will
place
a
premium on creative,
Marketing.
aggressive
Practical Research and
Development
A
third
•
Marketing
of
the
coming decade to
the impact these
implication
changes of the
is
is
neither an
offer to
sell nor a
solicitation
buy these securities. The offer is made
by the Offering Circular.
/
Isthmus Steamship & Salvage*
(A
-
Delaware
Common
Co., Inc.
Corporation)
GNP
inflation
year,,
a
would
aver¬
our
real
become
Thus
be
-
of nearly
dollar in¬
our
1970
about
70%
econ¬
target
the
for
growth
sales
Share
»
Y
Copies
of the Offering Circular
the
undersigned
may
be obtained from
underwriter.
*'
„
ROBERT
growth in
EDELSTEIN CO., inc.
Companies in
industry
category
should set their sights higher still.
And now, one
per
This 70% in¬
should be Marketing's min¬
ahead.
$2.00
'
above
imum
decade
Price:
a
the
economy
in the size of
would
Voting Stock
(Par Value $.10 per Share)
crease
the
Broadway, N. Y. 6, N. Y.
offer to
of 1970 of $650 bil¬
more
$750 billion.
SECURITIES, INC.
The
been.
more
compounded annual
our
the 1957-58 average.
'•
even
next decade than
146,912 Shares
economists
year.
monetary
only
crease
Per Share
the
only
inflation that the
people
have
granted
2%
to
dollar
$ljp5
announcement
of an
years, and if unions
hold
the
power
to
GNP economy
10c per Share)
lion
Price
This
Adds in Inflation Factor
rate
Common Stock
1-
over
estimate the rate of such inflation
Should
:
That is
Conservative
them.
traditional
..
create cost-push
American
one
difficult
it has
changing market
be
—could
20 to 59 groups.
a
that
job of Marketing—that of being a
winner in share-of-market growth
for
rates
increase
the' 1960s. It carries with it
disturbing implications for
Marketing
ing
thousands of American
youngest group and by our
a
have
potentials,
ke t
m a r
foreign producers, and are
starting to result in the export of
many American jobs. Thus, anew
facet
of
competition
has
been
added that can well snowball dur¬
those
products
and
services that are required mainly
have
have
brought
of our ex¬
years,
by
thing,
eldest citizens will
States
cost
continued in
for fourteen
brought what is beginning to be
a major invasion of USA markets
Competition
for the
have
about the loss of many
.
First, there will be dramatic
changes in the product mix of our
economy.
Several forces will be
at work to bring this about.
For
one
benefit
employee
that
United
the
offer¬
each
industries, other coun¬
getting more and more of
This, and the excessive
and
ogy,
monetary
continue
100,000 Shares
are
the trade.
must
we
element.
of
ment
many
tries
revolution in technol¬
a
another new element of
competition is being added.
is
the element
of foreign
Now,
cx-
1957-58
outline of the
economy.
profit increase rates.
on
con¬
will certainly
bove
add
another
the ele¬
inflation that
will occur il' government financial
practices follow their patterns of
Now,
money
NEW
who may be, first, entirely
enterprises, or second, estab¬
companies from the slower
tors,
could be higher.
averages, and
and
from
ties
government and business
comes
likely to account for more'
middle-aged people and
young
capita spending for consumption
a
than
their
present
shares
of
our
people.
These
age
differences
goods, and higher per capita sav¬
levels of national
have a direct and forceful impact educational levels and
income,
the f remaining
ings for capital goods expendi¬
human wants.
•
©n marketing.
major income category—disposa¬
tures by those industries in which
What will changes in age dis¬
I
think, we
may
take it as ble consumer income—will prob¬ such
savings are invested.
And,
tribution of our population be by
certain that the growing emphasis ably increase at a slower rate than
as
we
have already said, discre¬
But the total sum of dis¬
on
education from grade school GNP.
♦An address by Mr. Keener before the
tionary disposable incomes, being
through
college
and
graduate posable incomes should still be up the
42nd National Conference of the Ameri¬
marginal amounts above real
school will continue to accelerate. on the order of 45% or more by
can Marketing Association, June 17,1959,
need levels, will rise much more
1970.
This would be an increase
rapidly than will total disposable
in real terms of about Twice the
incomes.
Hence, those goods and
estimated 23% increase in popula¬
services outside the food, clothing
tion.
Thus, total real disposable
and
shelter
categories,
particu¬
All these Shares having been sold, this announcement
appears
income should be up by more than
as a matter
1%.% a year.
r
of record only.
There
their own growth opportuni¬
against additional competi¬
ing
;■"■/*'"4■
.
spending will continue
increase
GNP
thai/
income
sumer
past form, it is expected
governments'
appetites for
that
to
pereenftage figure
a
etioilary
revolution?
"
even
growth fields attempting to step
up
their own sales growth and
marketing
of
incomes
times. They
will also have the job of defend¬
as
rapidly as will ihe means of
satisfying those needs. I hesitate
the
disposable
production
-adequate
and
lished
ments, of the retained earnings of
business
establishments, and of
sumers.
bution
facilities at the right
since need levels will not increase
get this large
activities
prediction of growth rates for
specific product! lines, and of pro¬
viding adequate means of distri¬
rate
spending
consumer
growth
having
growth
will have the jobs of accu¬
fields
fo\ discretionary
Will snowball
available
money
to par¬
companies
the rapid
in
businesses
to\al amount of
crease in the
even
potential voC
ume of added
goods and services
distributed
will
r e q u i r e
tljat
elusive and fleeting ingredien
money! This will be generatedlai
the form of incomes, personal anc
business, developed from the en¬
larged production and commercial
To
ings,
Market
total
in
the order
nanced
wants.
levels.
rapid
more
Those
fields.
national
increases
income
in
ticipate
high/Or than this. rSecond, the in¬
Financing Tomorrow's GNP
evidence that there is no
and
dollar
50%
about
product
old
defending
of
jobs
Tines and of seeking ways
and, of course,
increase,
average
Fifty per¬
goods and services for
people would*indicate
increase
wives and children have plenty of
able limit to some
much.
us
and
somewhat above the 45%
True to
Thus, Of the 40,000,000 total
population increase from 1957 to
1970, about 27-million, or two-?
thirds,
will
occur
among
the
Importance of Population
youngest
and
the
oldest
age
Structure
groups. This is the dominant fact
There are many kinds of people, about
numbers
of
people
to
however, and the kinds of people Marketing in the 1960s.
who will compose the U.
S. A.
After looking at people by age
population in 1.970 are important
to
j-nore
23%
about 30%.
or
total consumption of an
England, a France, or,a
West
Germany.
present
are
cent
an
be
would
1957-58
above
ou1:
increase of
population
be
services
on
millions of
21
to
20
000,000—over half—will still be
under age
20 by 1970. The in¬
crease in this under 20 age group
conservative
would
about
this:
like
to
n
a
to. 1970 would run
growth
220 million. A
fair
of
estimates
Census
from
of U. S.
population
number averages
Round
population
ranging
all
growth?
population
.
fields, will have dramatic oppor¬
tunities for growth.
A second marketing implication,
un¬
der age 20
ployed
Even at a $650 billion level, the
anticipated percentage increase in
physical output of total goods and
will
groups
age
in
dominate
U.S.A.
1970
What
1970?
first
The
Some of those
do not create mary group of income producing
unless there are beople between the ages of 20 and
59. With all of those children, they
products in sufficient volume. As
measu r e d
by Gross National will certainly need it.
This leads us to two conclusions.
Product,
conservative
estimates
place the- 1970 level of output at First, the age 20 to age 59 group,
which
will be the big earning and
about $650 billion in constant 1957
dollars.
Some
estimates
go
as the big spending group, will have
high as $750 billion and above. real disposable income- increases
in
increase
an
larly those in the recreation, en¬
tertainment, and "niceties of life"
by
hypothesized
markets
large
real disposable
income for the age 20 to 39 group somewhat faster than the
-45% national average. The B. F. Goodrich head sees the need
1957-58
1970 economy.
income
of
our
Needs and wants
changes in the product-mix to
rise in consumer discretionary income reaching 200% above
the
in
groups
in the way
according to Akron industrialist,
1960s,
distribution
the
age
will of course be em¬
will have something
hold
heads would
be husbands
of incomes. With pen¬ growing out of the changes to
instead of wives.
Regardless >of sion plans, Social Security, invest¬ occur between now and 1970, will
that contingency,
however, the ment income, and some produc¬ be the varying impacts of com¬
level of the average individual's tive Avork, those age 60 and above petitive pressures on different in¬
presumed needs and wants will will likely have considerably morp dustries and on different compan¬
be considerably higher than today incorqe than at present.
But the ies within industries.
because
of
the
average - higher great proportion of the 45%
Those companies having busi¬
in¬
level of'education, as well- as for crease
in
real
nesses
that
are
mainly in thedisposable
con¬
other reasons.
•'
sumer incomes will go to the pri¬
slower growth fieids will have the
was
of the likely impact of certain and
the
in
that,
be college graduates. Fortune
assuming that those house¬
may
KEENER*
Goodrich Company, Akron, Ohio
President, The B. F.
In vie>v
is
by Fortune
by
1970, hearty
cne-third of all household heads
Magazine
final factor.
This
52 Wall
St„ New York 5, N. Y.
Dlgby 4-2994
Volume
190
Number 5862
.
.
.
The Commercial and Financial Chronicle
(115)
15
^
pronounced
competitive
the
on
and
market
Held
Development.
and
have
will
of
a
industries.
Much
How
Development money will be
spent to gain market advantages.
This
means
that
much
greater
proportions of Research and De¬
velopment efforts will have to be
It
specific possible contributions
all fall under
Through Pricing
Through Volume
Through Costs
also
has
been
a
innovation
or
advantage
has
if
tremendous
a
better
its
or
there is a great deal of
pricing
discretion exercised in many lines
of business. In too many cases the
new
is intelligently
product
merchan¬
dised. Hence, the setting of realis¬
discretion
tic but tight target times for com¬
pletion of Research and Develop¬
ment projects will be essential if
a
expects
company
with
the
"firsts"
much to its
so
to
come
that
can
up
in the process, ma¬
equipment, and methods,
much
fields will be just as vital to com¬
pany,
employee and stockholder
prosperity as it will be in the
field.
product
by 1970
This
is
because
so
will have to depend on
we
than
more
and
opment work
chinery,
extra
10%
through hasty price decisions,
V
Successful Research and Devel¬
involves "an
or
15% 'discount that good sales¬
manship would make unnecessary.
It is very easy for some Market¬
ing managements to give away,
mean
future.;
the
financial
manufacturing
control
manage-
ment^can
save in an entire year.
Marketing management can
do muclrto improve recovery, and
Good
hence
the
profit
Market.
business
return
in¬
on
vested
those
name
who
It
/'■,
that
means
must
will, it adds
you
to the
up
thing—that Market Oriented
Organizations will be the winners
Precon Electronics
in the
Common Stock Being
Offered fo Investors
same
the
in
,
function
exciting, risk-filled and op¬
portunity-filled decade ahead.
That
is
Marketing's
job
for
the
1960's ahd the job of
every other
function of business as well.
every
di¬
be
rected toward and be in tune with
the Market.
the
of
BOSTON, Mass.—John H. Fin-
fact
direct
that
his
of
50
in¬
tomers,
Company with its
With Di
Corporation,
Some
cus,-
and
Kelly,
Jr.
Roma, Alexik
has
become
affiliated
BOSTON,
Lindberg
man
must be
Customers'
staff
B. F. Goodrich
a
Man".
Call
it
by
of
Mass.
has been
Keller
—
Alfred
added
Brothers
to
for
re¬
development and
for
organized in
1959.
all
of
then, outstanding
tal
stock it acquired from
its
tablished
In
exchange
California
patent
the
of
little
a
working
than
more
population
15%
to
higher total physical output of
see
goods and services
of about 50%.
Marketing organizations that
benefit
from
and
S.
the
Securi¬
completion
Upon
die
will
company
in
all
company
the
of
can
shares
of
of
means
of
increasing individual produc¬
tivity will have big competitive
advantages.
Good rriilitary intelligence is vi¬
to success in wars, either hot
-
tal
or
cold.
will
Good market intelligence
be
absolutely
business
function
essential
in the 1960s.
success
to
traditionally
called Market Research should, I
believe, be renamed Market Re¬
search
and
phasize
Development
its
tance
to
fundamental
em¬
impor¬
to
successful
marketing,
planning and actions.
Companies with the best mar¬
ket intelligence over the next dec¬
ade
ter
will
be
abld to
judgments
product
ment
and
bet¬
and
Develop¬
advantage,
completion target
best
to
the
to
exercise
to how to spend
Research
money
as
as
dates that should be set for prod¬
uct
development
will
be
better
production
projects.
able
needed," at
what
They
know^the
to
facilities
that
times,
will
in
sions
be
what
that
in
sound
do
of
achieve
of
existing
and new products by areas, cities,
and sales territories.
These, and
many other problems of market¬
ing logistics and tactics, will be
possible
of
reasonably accurate
solutions,
and
will
give
those
companies having such superior
market
intelligence
great com¬
petitive advantages.
for
contribute to
profitability through
influence on costs. Marketing's
its
interest
in
direction'
of
means
costs
of
must
size, as well as by wise
savings in the Marketing field and
Marketing's sales suc¬
beneficial
exert
influence
reductions
that
In
vvere
American
will
vestment than
continue
cannot
economic
Such
progress.
dustrial
ments
and
and
retro¬
in¬
on
seriously sap our
strength, would make
almost certain the loss of the Cold
War,
our
would,
and
major
a
in
time,
American way of life to
astrous end.
Marketing
contribution
was
a
40%
these
increase
re¬
Marketing
can
tions
the
other
implica¬
the
of
changing decade of
Marketing.
I shall
myself,
however,
to
one
1960s
to
.
more.
ing
This
far,
so
I
and
product
panies,. and
is
one
the
have
it
is
lines,
those
sum
and
been
say¬
billion
these
of
nization
and
81%
the 1948
over
same
industry
new
and
ten
and
this:
those
coming
are
decade
industries
will
That
.
!5
805,415,696.71
473.971.194.50
.
.
398.271.355.51
22,831,520.99
.
.
1,635,685,623.40
.
Banking Premises and Equipment
be
those
completely dedicated to,
in, profitable Mar¬
ROBERT
G. GOELET
Real Estate
JAMES B. BLACK
$270
capital for moder¬
plants
At the end of the
and
B.
GRAINGER
President
r
Liability
on
President,
The Home Insurance Company
.
.
.
...
.
.
.
.
.
a
user
13,728,198.50
ALEX. H. SANDS. JR.
Vice Chairman,
The Duke Endowment
11,464,687.59
.
HENRY L. HILLMAN
President,
Pittsburgh Coke & Chemical
Company-
$3,449,509,100.28
CHARLES H.
LIABILITIES
.
($io.par)
.
H.
$ 63,765,900.00
52,068,653.45 $
302,068,653.45
Reserve for Contingencies
Reserves for Taxes,
4,069,933.48
Expenses, etc.
July 1, 1959
Acceptances Outstanding (Net)
Deposits
,
.
.
product. The nature of the prod¬
.
.
7,288,700.14
3,825,954.00
ROBERT GOELET
.
15,863,601.38
■.
.
.
3,049,723,114.27
.
idoty r(ZcnitHtffee
& Research
suited
income
thinks he needs and wants. Those
compensate
for
this
to
what
the
ultimate
user
Corporation
Real Estate
JOHN R. McWILLIAM
ROSS McCAIN
FREDERICK E
Retired
Hartford
IIASLER
Chairman, Ilaytian American
Sugar Company, S. A.
$3,449,509,100.28
WILLIAM P. WORTHINGTON
Home Life Insurance Company
President,
Securities carried at $174,651,409.1-7 in
deposited to
secure
the foregoing staterr nt
public funds arkl for other
purposes
arc
JOHN R. SUMAN
required by law.
Oil and Gas Consultant
Convenient Offices
Throughout Greater New York
Every Banking and Trust Service at Home and Abroad
uct— its
specifications; its style,
color, its size, its quality, its
quantity, its price — all must be
President,
Company, Inc.
C. WALTER NICHOLS
Chairman, Nichols Enjineering
66,669,143.56
-
.yfdt
W.
.
I. ROMNES
Western Electric
186,234,100.00
.
Dividend Payable
KELLSTADT
President,
Sears, Roebuck and Co.
"■
of
its
BLACK
65,028,145.40
Acceptances
Accrued Interest and Accounts
successful
wants of the ultimate
PERKINS
Vice Chairman
ISAAC
23,112,677.68
.
of the Board,
Pacific Gas and Electric Company
GILBERT H.
KENNETH E.
Customers'
that
period, there was practically
nothing in the way of added profit
to
.
com¬
Everything starts,with the needs
years,
invested
for additional
equipment.
that
.
keting.
of $140 billion.
Over
....
Other Liabilities
make the greatest contributions in
'
Loans
Fundamental
mention
the
At the
time, compensation of em¬
ployees increased by $114 billion
American
Other Bonds and Investments
Undivided Profits
Marketing
could
.
State, Municipal and Public Securities
this by assuming more respon¬
I
.
Chairman
Other Assets
in gross national product.
was
Cash and Due from Banks
U. S. Government Obligations
make
can
York
President,
I.iggctt & Myers Tobacco Co.
dis¬
same
and in 1957
New
BENJAMIN F. FEW
ASSETS
bring
toward
Industrialist
J. ALBERT WOODS
Receivable
a
Farmer
Partner,
Cravath, Swaine & Moore
JAMES BRUCE
of business June 30, 1959
invest¬
could
industrial
At the close
in¬
growth
continued
CALLAWAY
MAURICE T. MOORE'
f)^9ocnr/e'/icn
without
commercial
those
level
Yictt-c/etider/ f/Ya/emen/
and
on
gression in rates of return
Between
were
income.
there
must
returns
it has in the recent
substance of all
years-
cost
possible
The trend of the last eleven
past.
just $22
only 6% of na¬
billion, and
be
industry
larger
earn
profits
were
Chairman,
United States Rubber Company
ROBERT J. McKlM
President,
Associated Dry Goods Corporation
manufacturing
and
through
corporate financial control.
limit
tional
unit
on
may
Chairman
E. HUMPHREYS, JR.
CASON J.
in
and equalled
9.2% of national income. In 1957,
taxes
New York
and
Capital Stock
billion,
after
large
a
Surplus
profits.
HAROLD H. HELM
H.
165 Broadway,
Roosevelt & Son
•
Partner, Harris, Upham & Co.
eleswhere.
will
JOHN K. ROOSEVELT
HENRY UPHAM HARRIS
r :
loss system.
for
ade¬
1948,
profits
EXCHANGE
BANK
>
spending
brings sales increases of suf¬
cesses
Retired
President,
lchabod T. Williams & Sons, Inc.
7"^
Such reductions in ratios
ficient
responsibility
$20
CORN
the
seeking
be achieved by wise
that
JOSEPH A. BOWER
THOMAS R. WILLIAMS
reducing ratios of costs
to sales.
can
in
be
continually
SilERER
New York
CHEMICAL
sibility
for
restoring
adequate
profits to our American profit and
after taxes for all industries
about
Senior Partner, Drysdale & Co.
DUNHAM B.
do
A fourth
quate
Chairman, Executive Committee
ROBERT A. DRYSDALE
Responsibility
nomic
greater
can
also do-much to
can.
HOUSTON
BAXTER JACKSON
to
Marketing
K.
Honorary Chairman of the Board
N.
Profits
implication of the eco¬
changes of the coming dec¬
ade to Marketing is the need for
Marketing to assume a much
►
FRANK
to
versing this trend.
Marketing
whole
improve Marketing's
higher returns on
invested capital.
>
' ;A'*..-
stifling
how to
and
distribution
a
conces--
the
additions to volume
much
how
plan
price
undermine
contribution
years
to
at
Thus, good ad¬
vertising, good sales promotion
and good salesmanship that result
size production units, and in what
locations. They will know better
Optimum
increase
without
Charter Member New
Member Federal Reserve System
•
sale
stock
common
pricing structure.
The
have
we
volume
this
75e
value issued and outstanding.
par
rapid rate—provided such volume
secured
photo¬
500,000
good Marketing man¬
knows, incremental profits
added
on
a
and
have
every
ager
is
superior
performance
As
over¬
es¬
electro-me¬
electronic
-
increased
an
an
company
applications
in
for
capi¬
graphic fields.
ties Co., Inc., Zero Court St.
any
use
equip¬
February
chanical,
(Special to The Financial Chronicle)
by the phrase "every B. F. Good¬
rich
subcontractors,
and
inventions
chandise it inside the organization
tot
proposes
St.
Joins Keller Brothers
"The
capital, through wise ex¬
ercise of its pricing authority and
discretion. '
v
for
patent,
Marketing Con¬
cept".'; Some call it "Total Market¬
ing". In B. F. Goodrich we mer¬
as
company
The company was
with Di Roma, Alexik & Co., 1387
Main
of
common
working capital.
SPRINGFIELD, Mass.—John P.
speak of this fact of busi¬
life
shares
share.
per
ment
dei;
ness
175,000
the proceeds of the sale for
(Special to The Financial Chronicle)
potential.
Thus, Marketing, along with Per¬
sonnel, has a big' selling job inside
its corporate home, as well as outsi
$5
The
search
to the detri¬
or
present
Higginson
Federal St.
interests, and that
his pn-and-olf-the-job actions re¬
ment of his
Lee
parallel with
customer's
flect to the credit
at
ley III has been added to the staff
employee must be
the
in
(Special to The Financial Chronicle)
•
To accomplish this requires that
lie
of
offered
was
July 9 by
Charles Plohn & Co. and Nether¬
lands Securities
Co., Inc. priced
Lee Higginson Adds
Production, Finance and
Control, Personnel, all and more,
must, at all times, have their eyes
on the
Marketing ball.
terests
total
stock
opment,
conscious
A
Preconx Electronics Corp.
Research and Devel¬
each and every
We all recognize that, in most
large, volume lines, pricing must
be realistic and competitive.
Yet
that is
•
This means that everything that,
business does must be pointed to
•
time
proven
company
product improvement
a
are
coming decade.
of
are
v—
again that
and
g
in tune with this Market¬
are
fundamental
will be the growth leaders
greater
numerous, they
three headings:
.
moved from ivory towers and ap¬
plied directly to the needs of the
first with
n
the
"
and
k.e ti
r
ing
worse
the .big
Marketing
can
assuming
and
market place.
Ma
who
The
even
been
go about
responsibility
for netting an adequate
profit re¬
turn on invested
capital? Though
Research
more
of
be
has
American business generally over
the past decade.
will
major part in the success
probabilities of companies and of
play
This
1958,'
failure
im-
;
investment.
new
comparison would
for
Research
Product
innovations
and
provements
,
trends
pressures
whole
enormous
York Clearing House Association.
Member Federal Deposit Insurance Corporation
The Commercial and Financial Chronicle
16
.
.
Thursday, July 9, 1959
.
(116)
Seen for
cipal points made in Halsey, Stuart's mid-year survey of taxexempts. The "Survey" says the continually growing financing
volume may mean higher interest costs but the yields' attractiveness will otfer a wider and wider appeal in the expected
'
.
Halsey, Stuart finds
April's market reached a record high of $940 million, the
half of 1959 just barely missed last year's all-time high
continued strong competition
f
that
first
of $4.4 billion, and 20-year
for funds.
is still less than
.
1
.
.
nity
\
Larg;6 Issues in Market
to mar-
eral substantial issues go
growth
heavy
and
continue
pressure on
facilities
their
"The first six months saw sev¬
exert
.
a
tional
render,
range
This,
it has ceased to be much of
other
record
of
some
been
broken
in
the
bond market.
The
been falling by the
first
the
kind
has
tax-exempt
records
almost monotonous
"In
a sur-
mention that ah-
you
have
wayside with
regularity.
half
1959
of
the
market did its bit to maintain the
high volume monotony.
It
pro-
duced
of
$940
a
new
new
a
issue
in. April
million
total
to
set
Monthly record that crowded the
billion
dollar
high
mark.
figure
With
this
institu¬
investor
corporate
and
groups."
Continued
from page 2
more
means
large borrower before, as in 1954 some time, hunting for new ways
when it financed its St. Lawrence
drum up a tax dollar.
This
River plant to the tune of $335 N year's forecast indicated the
million). Chicago's O'Hare Air- heaviest state tax legislation since
port came up with a $120 million 1955^ and state efforts to build upissue, California sold three issues revenues are being matched by.
totaling $200 million, financing in counties, cities and even many
Los Angeles City and County relatively small
communities
pressure on prices which brought totaled $142 million, and the Mas- caught between expanding heeds'
and
inadequate
incomes.
It
is
yields to the highest point in a sachusetts Port Authority had a
quarter century. While the mar- $71.7^ million issue.^ Grant County very probable that the future will
see
some
state and city income
ket for tax-exempts at times re- Public
Utility District No. 2
fleeted a certain amount of con- (Washington)
nearly made the taxes where none existed before,
JI-—,
fusion, it also appeared to have a first-half list with a $195 million jn addition to increased and eXmore solid foundation under it issue, but the latest word is that tended
sales taxes, where the
than the markets for other bonds, this big one will go to market public will stand for them, and
including the market for govern- early in July.
other entirely new and sometime^
ments. The range
in average
"As has been the trend in recent ingenious applications of the taxyield, based on a 20 year maturity, years, the size of individual issues jng power.
: v
broadened a little as compared generally showed an increase. In
increase jn Federal taxwith the same period last year, the first five months the numboi
of life insurance companies
hut still was less than one-half of of^ issues actually^ declined-—irom.
highly probable as this Surinr
prise when
and
them to expand
and
services.
more
to
bonds Mjixe
making
a
wider appeal to indi¬
exempt
wider
underwriters head shaking, but not too much
large since this sponge-like capacity,
market will continue to expand too, Is becoming a commonplace.
with greater appeal to investors.
,
In its "Mid-Year Survey of the
Yields at 2» 1 ear High
Tax-Exempt Bond Market," Hal"Today's volume of new issues
6ey, Stuart & Co., Inc., New York is twice that of a decade ago, and
City, observes that "in recent years 1959's first half supply kept a
One of the largest
of municipals shows why the
esti¬
money
viduals and to the many
ket, led by two New York Power more and more taxes.
Authority plferings totaling $400
"The fact is, state and local govmillion (this authority has been a ernments are, and have been for
in average yield
one-half of 1%.
maturity
new
yields already available from tax-
$243
investor groups, is one of the prin¬
institutional and corporate
raise
to
,
ually declined to a less top-heavy pectations. Taxes
certainly are
million at mid-year.
Thus, >not going to be cut in the foreseein the first half at le'ast, inventory able future, no matter how. much
fluctuations were relatively nar^ wishful thinking there may be in
row
as
compared with last year that direction.
Many state and
when the low was $155 million local
governments
are
having
and the high set an all-time record their financial problems, yet in¬
creasing populations and commu-1
of $392 million."
individuals' taxable incomes
have
bonds requiring no
revenue
mated at from $5 to S10 billion in
public vote.
"All expectations are that the the second half of 1959.
"Further increases in volume of
hew issues came a little slower, tax-exempt market will continue
bonds moved off the shelves a to expand, and there are ample financing may result in higher in¬
costs, but the attractive
little faster and inventories grad- and sound reasons for these ex- terest
Tax-Exempts
unprecedented attractiveness of tax-exempt income for
over $15,000, as well as for many
The
by
ing 1959 the sixth straight year in
which the high has exceeded $30Q
million.
From the April 24 high,
Bigger Business Than Ever
I Like Best
and yet the average age of
management would probably
not exceed 42 years. A few have
tion
,
the
entire
their
spent
business
with PET. It is believed
is
life
that this
extraordinarily healthy and
an
unique situation to have top man¬
still with
of
them.
The
agement so young, but
so
and
same-company years
many
experience * behind
higher
profits of recent
years
have
been clue a great deal to
product redesigning and re-align- *
ment of manufacturing facilities.
As
example, PET is now work¬
an
ing with duPont on the, develop¬
of
ment
plastic that would
a
be
suitable for tool casing. The sub-*
of plastic for
stitution
aluminum
would, of course, mean a sizable
reduction in material, labor and
cost.
shipping
recently initiated
by naming
six regional representatives, who
have long been modest buyers of
•will promote PET Products ex¬
tax—exempts and have increased
clusively as opposed to the old
The Company
a
equalling last year's all-time first
half record of $>4.4 billion.
principally the large revenue issues whose market is influenced,
by current and prospective earnings, actually fluctuated less than
did the average 20 year yields.
/-ocnoois couunueu iu uc »«=
beneficialles of tax-exempt li
"The high volume maintained a
nancing, with school issues mak- their holdings' every year since
steady pressure on the market,
ing up 26% of the live month ]g52
The new tax'formula will
and the market in turn continued
total.
On previous peiloimance )-nake tax-exempts more, advanto demonstrate that its saturation
"Inventories
of
unsold
tax- that was_pretty much to be ex- ^ageous to them, and for a long
point had not been reached—but exempts in the hands of dealers Peered.
Lf0^. 7^ moie lema k~ time some companies have been
prices had to give ground.
This imilL up
r a t h e r_ consistently able was the high volume of sew- making purchases in" anticipation
-16% of the
phenomenon—the market's ability through the first quarter and the
J^on+cJf^•
of the increase.
These purchases
to absorb huge amounts year after
year—as
usual
drew
its
share
List
Blue
of
of $340
total—reflecting
reached
count
million
a
peak
April 24, mak-
on
the
tremendous
development
and expansion of
towns and cities and the accom¬
have
the
panying need for facilities of this
nature.
Highways
and vrelated
Notes
The National
✓
nation, state, county or city
are
combining
at
midr-1959
.
Special Pullmans will leave Chicago, Cincinnati and Pittsburgh
Friday, Oct. 30 arriving in Washington Saturday morning. A
short sightseeing trip has been arranged
visiting the Capitol, Mount
.
borrowers
Pullman, meals
days at Boc-a
room),
and
and
Raton
transfers
of
on
New York
on
train
individuals
Round
may
Raton,
year.
(Two in Twin Bed¬
"It
enroute
and
to
Boca
baggage between
train
.Two in Bedroom
.
i
From
1
Chicago
_
—
From New York
.From Philadelphia
—_____
$340.00
305.00
315.00
290.00
300.00
Returning. Special Pullmans will leave Boca Raton
morning, Nov. 6 for Chicago, New York,
a
V
ume
Friday
Twin
Bedroom) at British Colonial on European
from approximately $65.00 to $85.00 each depend¬
ing upon the stateroom selected.
Upon returning to Miami, it will be optional to return directly
two days in Miami
via New Orleans.
over
cr
Beach
and
*
'
CASPAR ROGERS
I
JOHN M. HUDSON
Caspar Rogers Co., New York, N.
J
EDWARD H.
£
Sincere and Company, Chicago, 111.
WELCH
.
of
billion
tax-exempts
■
total
then
return
the
a
jias the comparative advantage of
income
tax-exempt
been
as
over
attractive
taxable
as
now
demand
imprOvements,
civic
that were
schools, highways,
for
doubtedly is a significant reason
why in the first half of 1959 there
were
and into tax-exempts,
"The volume of new tax-exempt
offerings in the first six months
had its effect on prices, but the
biggest market influence was ex¬
erted
by the government bond
market
Y.
where
pressures
on
the
Long-term debt
$561,0Q0
Pfd. stock ($100 par)
2,800 shs.
Common stock--—;/ 357,000 shs.
Finances
strong,
are
the
cur¬
approximately
3.3
X
1.
Officers, directors and
trusts
(including the Company's
Pension Fund) own over 50% of
the
ratio
being
Dividends are
common.
run¬
40c annual rate, as
management is extremely acqui¬
sition conscious and consequently
at
ning
a
trying to conserve cash. However,
a
25% stock dividend was paid
last fall and it is believed
that
the cash dividend will be
sup¬
stock in the fu¬
purchased
plemented with
recently
PET
ture.
Inc.,
Works,
Electric
Drake
a
public
buildings,
manufacturer of solder¬
ing
irons
and
related
equip¬
ment.
This
acquisition
w i 11
broaden its products line and its
distribution
channels and
will
contribute to its growth.
For two reasons, it appears that
the home workshop industry is
on
the threshold of a period of
Chicago
great growth:
(1)
The
always
increasing
charges of' the service and repair
industries. It is simply the smart
other >than
est rates.'
that offer the
thruways and
"The
l'he
in
the
months
of
1959
they approved try, where management sights are
$816 million of new tax- being raised on modernization exexempt bond proposals while re- penditures; (2) the various states,
jecting some $209 million; in the counties,.cities, districts, commislike period a year ago they had sions
and
other" governmental
approved $684 million and turned units, which in 1957 numbered
down $273 million. And there are close to 100,000; and (3) the Fedincreasing numbers of projects in eral treasury which, in addition
money
along
pation
and
that
will*be financed
to
substantial * refundings,
will
workshop
possiblity of saving
Outlook
outlook
home
the
restrictions on longer term inter-
with both
the
partici¬
satisfaction
of
accomplishment.
months
works
'
follows:
thing for every household to have
a
complete set of tools on hand
of old-timers. Government
and a working knowledge of their
bonds that only a year ago were
speculative
favorites
took
the use, rather than to be preyed on
by greedy repairmen
brunt of the selling and, at one
(2)
The gradual reduction in
time, sold to yield 4 V2 %. And late
in the period the Treasury's prob- the working day and the increase
in leisure time. This fact cannot
lems were further aggravated by
announcement of the need for help but set more people to look¬
higher debt limits (subsequently ing for means of filling up these
granted) and removal oe easing of extra hours There are few hobbies
ahead is for continued strong commost of the bond financing pre- petition
for funds among three
sented to them.
In the first five principal contestants: ^(1) indus-
the
representative
1* e r s
currently capitalized as
is
ory
other projects is reflected in the
voters'
willingness
to
approve
.
reports of sizable transfers of
funds out of taxable investments
price structure were more persisof tent than ever before in the mem-
Demand Continues
"Continued
PET
White Adds to Staff
over
Thayer Baker & Co., Philadelphia, Pa.
b
$6.3
'
on the Boat, rooms with
For reservations communicate with:
the
all
Plan will range
north or stop
directly home
tax-
the
market—manufacturing, utilities,
transportation, communication,
etc."
-f—.v-' \
——r—:
Trip by
Nassau, leaving Miami at 5:00 p.m. Friday, Nov. 6 arriving
Saturday morning where the group will stop at the British
Leaving Nassau on Sunday at 5:00 p m. arriving
Miami at &:30 a.m. Nov. 9.
.
*
in
the
included all publicly offered
Colonial Hotel.
(Two
that
bond issues of all segments of
Nassau
iu1?6 tost-' which wiI1 include all meals
bath
to market later in the
'
billion
Boat to
v
prices preofferings
other
marketed, And the corporate vol-
on
Post Convention
the
bonds publicly offered
actually was exceeded by the $7.4
Philadelphia and the North.
Arrangements have been made for
a
of
corporate
if
$320.00
$50 million is-
on
and
evident
is
1958
In
One in Roomette
(Each)
I
This
come
The
exempt priarket is big' business and
will become still bigger business,
hotel, will be approximately:
•
because
sue
conditions.
Thruway, for instance,
rejected bids
sented.
American Plan
of some issues as
decided to await more
market
favorable
a.m.
The
cost oT the All Expense Trip, which will include
itail and
irip
tive
and
all
to
greatly enhance the value of taxexempt income. Never in history
income
manufact u
.
postponement
"
Special Pullmans leaving New York and Philadelphia on Sat¬
urday morning Oct. 31. will arrive in Washington at 1:00 p.m. The
Special Train will leave Washington at 2:00 p.m.
arriving Boca
^
Mas-
taxes,
tremendous in volume a for the individual in the $15,000
few years back, were still a subFederal income tax bracket. And
stantial $203 million in the first a proportionately greater advansix months.
tage is available to investors in
"There
was
a
withdrawal or the higher tax brackets. This un-
on
Raton Sunday, Nov. 1 at 9:30
Values Widen
more
issues,
a
change in the dates of the Annual Convention to be held in Boca
Raton, Fla. The Convention will run from Nov. 1 through Nov. 5.
Vernon and other principal points of interest.
Tax-Exempt
"Taxes,
program,
method.
rent
generally high cost of operating
sachusetts, $25 million each from
Maryland, Michigan and Florida,
and $20 million each from Alabama and Louisiana. Veterans aid
Security Traders Association has announced
on
tax-exempt
issues in this category
including $62.5 million from Conbig
necticut, $52.8 million from
NATIONAL SECURITY TRADERS ASSOCIATION
influence
of
level
projects such as bridges and tunnels accounted for 9% of the total;
with
NSTA
important
an
price
bonds."
sales
new
(Special to Tnr Financial Chronicle)
ST.
Gels
of
LOUIS, Mo.—Albert R. Van
been added to the staff
has
White
and
Company,
Missis¬
sippi Valley Building, members of
the Midwest Stock
Exchange.
Number
190
Volume
5862
.
.
The Commercial and
.
Financial Chronicle
(117)
to choose
has
THE MARKET... AND YOU
By WALLACE
random
a
example, a' dozen years and hasn't after the old shares were
split
steady growth changed the capitalization for on a 2-for-l basis.
90-cent
profit re¬ a decade. This more or less
*
*
J
*
record of
a
and
the
•
ported five years ago
to
$1.65
last year,
STREETE
was up
automatically makes it
which didate for something
a can¬
dend
to
demonstrate
its
new
strength this > week, indus¬
trials forging ahead
steadily
levels
to
before
never
in
seen
been
keeping
lowers cautious but the
the rails
was
nudge their
in
action
be
to
of
expanding de¬
Moreover, on a yield
one
The
Come
to
basis, the steels
some
years.
as overpriced as, say,
of the electronics or the
rails, which had sat
Acme
Steel
•
•
surges
trials,
came to
by the indus¬
life when the
way
without
important help from
the carriers. But it
ening
them
that
in
any
event
in favor and it
needed
was
to
drive in the blue
new
heart¬
was
to
see
was
all
spark
.
known
indicated
twice
payment
better. The company
certain
been
A Recession Survivor
a
rebound from
issues
downright
would
Typical of
neglected
lory,
fiting
profits.
weathered
to be P. R. Mal-
seem
which
has held in a
year's recession is Expate to that extent in any im¬ Cell-0 which had a consist¬ range of a dozen points
throughout the frenzy else¬
proved payout.
ently higher sales pattern for
s|:
$
Harvester,
similarly, is coupled far more
closely in popular conception
fourth.
a
of
its
business
About
third
a
is
in
of
its
its
services
met
a
dend is
era
had
peak it posted in 1957 in its
first
a
1
view
comparatively modest
of earnings
running
twice the
over
when
stock
extras and such
an
dividends,
the
tool
and
company is
record sales and
which should
spur a resump¬
tion of the
yearend stock divi¬
-
benefit
trading
the
range
stock
the
on
had
dend last
[The
time
up¬
held
half
a
are
to
dozen
the
those
expressed
not
necessarily
with
They
those
are
presented
(Special to The Financial Chronicle)
shares ' in
DORSET, Ohio
1957
—
Wjlliam A.
Porter is with Russell McConnell.
Up to here the rails have
doubts
could cut
carrier
drastically into the
show
new
while
kind
fact,
rampant
business.
odds
of
Byt their
strength came
of
still
steel
in
was
favor
strike
the
market
that
the
over
centered
stocks
common
face
of
shown
average,
low that
in
a
for
lagging demand for the steel
around
the
shares themselves" because of
in
of
year
of
the
now.
the
Motors
rails,
has
dormant
in line with
or
the
near-
the
are
blue
names
spotlight.
But GM Santa Fe and
at the best price Harvester. At
were
of
some
-
leaped
wasn't
into
much
to bolster it
Defense
action.
in
the
International
high for
production by
auto maker in June. Ford
continued
since
these
to
the
post
yields
the
shares
a
were
peak since 1926
U. S. Steel
a
new
sions,
for
a
v.
was
so
sold
the
and
•
•
.
.
•
.
•
in
.
item,
group
rather
where
were
some
largely
the
need
for
a
reverse
little
in
investment
flavor.
However, the company today
is a radically different
one
ses¬
than
1,524,439,154
State and
WILLIAM B. GIVEN. JR.
Chairman,
Municipal Securities
•
I
9
•
•
Other Securities and Investments
.
•
.
.
Banking Premises and Equipment
.
.
New York
no
strike
3^3,190,625
JOHN W. HANES
23,366,576
Director.
(Jlin Mathieson Chemical Corporation
A.
LAPIIAM
President and Director,
Grace
GEORGE G.
Customers'
Line, Inc.
Assets
MONTGOMERY
Liability
on
Acceptances
.
.
12,193,428
.
36,073,368
.
Deposited against Bonds Borrowed
10,250,000
.
President and Director,
Kern County Land Company
$3,006,165,989
THOMAS A. MORGAN
New York
HENRY I.. MOSES
Partner, Mosts and Singer
LIABILITIES
JOHN M. "OLIN
Chairman of the
Financial and Operating Policy Committer,
Chairman of the Kiecutivc Committee,
Olin Mathieson Chemical Corporation
Capital (Par value $10
Surplus
DANIEL E. POMEROY
,
$ 40,299,500
.......
160,000,000
per
share)
,
New Jersey
Undivided Profits
B. EARL PUCKETT
Chairman of the Hoard,
Allied Stores Corporation
Dividend
.
.
74,229,225
.
when
it
was
Kaiser
WILLIAM T. TAYLOR
ACF Industries,
Payable July 15, 1959
Incorporated
•
Reserve for
WAITER N. THAYER
J.
Deposits
Chairman.
II.
Partner,
Whitney <fc Co,
•
»
»
•
•
$
274,528,725
3,022,462
....
A. TOMPKINS
.
*r
<y
*#*
Permanente
Cement
»
*i
«
has
Motors.
- .——
20,410,207
$ 40,230,530
.
.
2,580,534
v
37,649,996
THOMAS J. WATSON, JR.
President,
International Business Machines Corporation
Liability Under Bonds Borrowed
.
,
.
.
.
10,250,000
ERAZAR B. WILDE
President and Director.
Other Liabilities
Connecticut General Life Insurance Company
.
.
.
j
.
...
.
3,689,071
$3,006,165,989
1
Assets cirricJ
it
$119,932,406
on
June 30. 1959
were
pledged
to recurc
Jepoiiti and for other
and
Permanente Cement,
2,656,615,528
New York
Less Amount in Portfolio
.
•
Taxes, Accrued Expenses, etc.
Acceptances Outstanding
B.
•
sibility of a lag in orders as other holdings into Kaiser
high inventories are worked along with its thriving Willys
is
90,985,020
American Brake Shoe Company
Motors.
gener¬
sion, At the moment the
pos¬
there
505,481,163
.
President, Cullman Bros., Inc.
E. CHESTER GERSTEN
'
if
770,186,655
good
some
this
ally, the outlook was equally
The drastic realignment of
as
good as for the economy Kaiser Motors into
Kaiser In¬
generally
despite a strike* dustries entailed
putting im¬
They demonstrated suo^Hor
portant , holdings of Kaiser
earning power at low-level
Steel, Kaiser Aluminum,
operations through the reces¬
off
$
split in the stock, it has been
prominent
steels
induced
action
ignored in the past. In fact,
since the company's dis¬
astrous
experience in
the
highly-competitive market,
was
t
Loans
ever
its
For
of
good reports from companies
/
high for several
rest.
one
also
in
,
k
U. S. Government Securities
HOWARD S. CULLMAN
Stimulating
mundane
faltering could
normally be laid to the need
.
Cash and Due from Bank*?
President,
National Biscuit Comjiany
Accrued Interest, Accounts Receivable, etc.
any
steadying influence.
Strike Threat
at
ap¬
price
Well-Yielding Ignore
.
.New York
GEORGE H. COPPERS
LEWIS
Award
dustries
highs
new
of Condition, June 30, 1959
ASSETS
v
any
publicly and its June produc¬
tion at
S. SLOAN COLT
except that the subsidiaries of Kaiser In¬
all-time
monthly
-
Senior Vice President
JAMES C. BRADY
President,
Hrady Security it Iicalty Corporation
levels
recent
A defense award to
its Chevrolet division claimed
an
Montgomery
as
Motors, Ward,. First National Stores,
Chrysler took turns Philip Morris, Sinclair Oil,
shares
YORK
plentiful and in such well-
known
split in 1955 and once that proached 5%.
peak of '54 was breached, the
news
Condensed Statement
BRIAN P. LEEB
above those
General of the corporate bond
indices,
in
worked away
seen
since the
There
NEW
BOM
J. PASCHAL DREIBELBIS
yard¬
responsible
American
as
the
been
item
Ford and
stock
Senior Viee President it
Chairman of the Advisory Committee,
•
Like
in
JOHN M. BUDINGER
But
implications. So the sticks are more
performance was doubly than the
general equity mar¬
impressive.
ket where yields of above 4 %,
chips
company
President
stock
rail
or
ALEX H. ARDRF.Y
Senior Viee President
a
high-soaring issues used
most
the strike
on
bonds
corporate
Chairman of the Hoard
be¬
return
a
Bankers Trust
WILLIAM H. MOORE
fact
have,
some
and,
general
the
on
DIRECTORS
still
were
MEMBER
OF
THE
FEDERAL
DEPOSIT
this
at any
of the
of the author only.]
company
recession
in
good style to contribute to its
history of above average
pretty
consistently
ignored stability through good times
the good
carloading figures and bad.
streaming along, the theory
being that a long steel strike
What
in
With Russell McConnell
peak posted by
present
do
coincide
spread of
a
points. It has still
reach the
paid in 1957.
views
"Chronicle."
in
as
little better than
trading.
headed for
earnings if
projections work out,
current
article
its
listed
of
year
The
this Fall. Until it broke out of
distribu-, side,
requirement. And in
to
working i n d.u s t r i e s
by the exten¬
changes in auto models
output is occupied with farm
equipment. Moreover, its divi¬ sive
tion
stock
equipment than quiet life this year until re¬
trucks although nearly cently when it appeared that
would
well
The
the stock has yet to reach the
farm
trucks.
in
where in the section. In fact,
dozen years until last
year's
recession caught,
up with it
and trimmed sales
by about
a
International
half
last
The
the
have
sensational
efficient additions bene¬
new,
a
seemingly
where
in¬
the rage,
Harvester has maintained the
com¬
the same rate for more than half
has been
working hard toward
plete - integration with
chips.
or
an
by Kaiser and it will partici¬
motor
out
for
shortly. Some 39% of
the Permanente stock is held
with
among lesser
companies was show¬
ing a yield of well past 3 Yi %
industrials showed
signs of
tiring. The need for one aver- despite its recent strength and
the fact that the
recently in¬
age to "confirm" a bull swing
creased
dividend
could
be
by the others has been in
doubt in recent years as the boosted once more if, as ex¬
pected,
senior section went its
earnings cover the
earlier
candidate
a
crease
far from
are
chemical shares.
Life
to
mand.
its best being
average to
posting in about three
Rails
note
new
over¬
all pattern for at least a
year
and a half in the future seems
'
history, while the
steel fol¬
some
The
extra item in the electronic
group
makes its modest current divi¬ this
year.
The stock market continued
17
INSURANCE
CORPORATION
purporer
n
The Commercial and Financial Chronicle
n
.
.
Thursday, July 9, 1959
.
<xi8>
Texas
State oi Texas, Austin,
spotlight to big labor and big
government but should participate in politics. To buttress this
advice, former Governor Shivers briefs four areas he bplieves
are
of singular concern to businessmen.
He also reminds
businessmen there are two fundamental concepts necessary
to the nation's survival and of what our Founding Fathers en¬
should not yield the
Business
visioned
as
limited
to
To the
powers.
more
time for intangibles,
businessmen, with no
The
of
experience has been varied: first,
& businessmen myself; then parttime in business and in politics;
and a half
eventually, for seven
and
world,
full-time in politics
now, back in the business
years,
—
interested citizen's
stake in polities and government.
This experience has caused me
lo recognize the value of a whole ¬
some association between business
and
only
premise for saying that the busi¬
should participate in pol¬
Another
premise is this:
Politics, translated into govern¬
ment action, is the strongest single
determining
force
in American
business today.
tecting its own legitimate
interbest
cists-—and equally alert to the
interests
nation
the
of
at
large.
These interests do not always co¬
incide
surely
they
detail, but
in
in substance.
will
Secret
Defense
Former
Charles E. Wilson
a r y
politics is a moot question. We
in polities, up to our respective
necks. And politics is here to stay.
Are We?
said
ac trial
he
"What
good
for
good
our
J'pr the nation is bad for all of us,
might
advantage it
to bring to our little
seem
segment of the economy.
*An
•the
address
by Gov. Shivers before
Group Conference, Invest¬
Association,
Santa
Bar¬
California
ment
bara,
Bankers
Calif.,
June
30,
live in a
lifetime, have witnessed a
of revolutions—in technol¬
in transportation, in com¬
munication,
in
world
relations,
and in human relations.
versa,"—that is, what is bad
whatever temporary
the
ogy,
We
only half a century re¬
from the
heyday of t lie-
are
moved
great industrial barons who
and
did
Businessmen
could
public—and the
whose
immediate
getting their present-day concus¬
sions from men named McDonald.
Reuthcr and Hoffa.
Big business lias yielded the
spotlight tc big labor—and big
government.
•
Our homes, once protected by
v
mountains
and
and
thou¬
changed,
has
as
beyond
I
to sug¬
want
to the businessman.
The
.
•
Role
'
j
business, as Monroe
proposed, we have been forced to
seek
out alliances all
over
the
billion in
the
.
This has cost
$70
some
us
fland arid
011
S.
Government
from
Due
5
.
The seeking of permanent
starts.
alliances
has
tinue to be, an
will
and
been,
con¬
expensive if neces¬
process.
parties to
are
to
than (55
more
in most of these
say,
34,374,555.37
we
run
v
y
s' ould
fact
second
A
or
14,359,320.02
13,953,418.02
Insured by
U. S. Government
/Other
IV.iik
Loans and
or
Agencies
Discounts
59,805,863.01
...i .V;;,
.
,166,289,507.03
Huililin.es
Furniture
'Other
and
Assets-^
Fixtures
a,
.
37,384,778.87
105,546,297.31
Municipal Iljmils and Other Securities
Loans Guaranteed
$
.
i..."../..
TOTAL
55,084,291.50
.139,855,219.14;
ai'gue
where
be
we
Economic
if
Capital
Surpiu.-
$
Reserve
Other
lor
Capital Funds
Taxes,
Interest, '.Etc.
liabilities
.
Dr-'«:t<
cepted, is that of vastly increased
tion
of it
"MEADOW
been
has
the
to
our economy.
due
been
growing
to the
Some
(equally
1.936.383.69
1,696,733.49
$362,002,634.34
$
8,231,850.00
8,068,150.00
.
1,618,534.37
2,820,833.98
10,487,705.88
8,020,522.42
28,736,240.25
27,141,356.40
5,064,884.11
4,636,897.95
512,190.44
318,040.58
BROOK"
COUNTIES
has
increase
due
inevitable reaching out of govern¬
5394,215,184.14
GROWING
of this
complexity of
power—often with
the acquiescence, or even at the
invitation, of industry itself. The
point, for the moment, is simply
that there is more government in
business today than there was 5Q
ago—20 years, ago—or yes¬
terday.
It
IN
then, a matter
of
business
fighting against ail
governmental "interference." That
UNITED
STATES
no
is
longer,
over.
The
government
it.
won
third
A
329,906,339.41
SjERVES THE FASTEST
THE
is
war
$362,002,634.34
more
years
the
TOTAL
of business.
Some
inevitable,
ment for
359,901,869.34
MR.
be
ac¬
1,677,201.73
8,315,835.00
.
for Possible loan Losses
Total
to
1,723,409.64
8,314,165.00
.i..'..
Reserve
ch a nge
cheerfully
6,804,694.28
$394,215,184.14
•/,.
Umliv.Y.c-il .Profits
of
not
7.068.369.68
LIABILITIES
nation's
has
What
At the
face
of
significant
change
in
country and "our
economy—and this one, on bal¬
ance,
is a wholesome change —
our
about,
dollars
year.
not
us
tc
are
satisfied
and
even
proud
belong.
Half
very
poor.
century ago the few were
rich—-the many were very
Great
leveling
influences
a
a
moral
half
billion
a
we
billion.
bat¬
are
.
Some of
Senators and Con¬
our
helping in this fight
sneering at the Presi¬
dent for even suggesting that a
balanced budget is important.
gressmen are
Others
are
Having been in both
legisla¬
a
tive and executive position in state
government, I know from experi¬
ence
that it is not easy
to say
categorically
how
spending is enough.
of
is
here
us
much
public
I daresay that
qualified to
much
how
fense,
we
should
national de¬
this year on
for example.
spend
/
business,
cannot keep an accurate balance
sheet.
We put
down taxes col¬
lected, and appropriations spent—
unlike
Government,
but what of the returns?
Consider
which it is based.
a
Now
tling to balance the budget at $77
determine
us this wondcriul system cJ
government.
it is, of course, a
system
of dual sovereignty; in
which the State and Federal Gov¬
authority
share
ernments
the
have
that
lives
-
and
worth
reasonable v al nation
that kept a great city
a
•
be
not to have lo go to
and I did? ' What would
of xa
from
war, as you
be
it
would
much
How
for your son
dam
being ^flooded' ixi"fbe rainy^s^asdh'
and thirsty' in the day'? You see,
there are many intangibles in this
authority and responsibil¬
ity among the executive, legisla¬ government business.
This makes it all the more im¬
tive, and judicial branches. This
portant,
for
your
interest and
power is further apportioned and
spread out through the political mine, to elect public officials who
sub-divisions
of
the
state:
the are sound and sensible as well as
responsibility.
At botli levels there is
a
division
of that
municipality.
who have the ca¬
recognizing facts and
working from them to logical con¬
who
do
not
seek to
Properly functioning, this sys¬ clusions;
tem
dilutes
the power of each punish anyigroup or unduly favor
another, and who will remember
level and each branch, to tne end
that a government should not at¬
that none shall dominate.
Thus is preserved a system of tempt more good than! the people
county and the
honest persons;
pacity
Federal-State Limited Powers
cheeks
and
balances
the individual with a
that leaves
maximum of
The conservation
offers
fundamental
a
businessman
the
to
for
reason
is
you
extent
the
he
trends as:
(1)
ment
The
of
preme
progressive
the
of
Do
Federal
encroach¬
the
upon
local governments; and.
progressive
the
concerned-with
policies
of
your
the
gov¬
United
encroach¬
States
Su¬
Court upon the legislative
prerogatives of Congress.
have
you
an
opinion about,
inflation, soft e u r r e ivc v, publicdebt, interest rates, balanced bud¬
gets—and taxes?
These
of
The
you
money
believes
system,
State and
I would ask
ernment?
that
according to his
own
interpretation of its mean¬
ing, he ought to be on the firing
line
resisting
such
threatening
the
question
this:
Are
(2)
be interested
hnT*government.
To
in
second
A
of this system
Money
Policies
of free enterprise.
elements
Our
About
Concern
These, in turn, are the basic
ty.
in
for
afford.
can
liberty, incentive, and opportunit-
(2)
the
beginning of this century
spending
gave
ment
as
yon
i
been saved by the Salk vaccine
and tlvim.
for polio.
How many dollars are
to reconsider what the Founding
thev worth?
Fathers had in mind when they
emer¬
be described
of
expendi¬
by, peopie
It is well to pause now
a
vast middle class in
America—a class to which most of
might
gence
ex¬
the United States Governmeht was
Foundations
Jud co-Christian
the
(2)
laws uoon
made
are
none
Enduring
governmental
elect to office.
changed?
Two
interested in the
specific political ques¬
a
for
tures
fundamental changes,
history.
,
of government?
.
annual dues
our
'
or¬
Intervention
108,657,775.70
This is
tion*
y
are
Are you
pense
when viewed in the context of our
pri¬
governmental control and regula¬
banks
(1)
vately
invested abroad, or the,
.1
submit
that there are two
multiplied billions we have spent concepts, abstract but basic, which
on our
pwn defense establishment. have endured,
and which must
Times have cha.aged, so that we
endure if this nation is to survive.
can no longer hope to form effec ¬
I refer (1) to the unique Ameri¬
tive alliances alter the shooting can
system
of government, and
CONDENSED
Securities
These
Side
ask you a few ques¬
me
tions.
of the rest.
foreign aid, not counting
billion publicly and
$50
Looks at the Practical
Then let
and
hemispheric
recognized,
IJ.
a
of the Free
Government
Cash
by
who help
government
the
care
might
Mother,
the United
I'm. lor
"Sure,
say:
specific reasons why 1 should
neglect my business, alineate my
customers, raise my blood pres¬
sure, and bump my head. against
the rough wall of partisan politics.
Frankly. I'm just not interested in
polities."
those
helps
language.
YORK
1958
an
more
Certainly the term "social secu¬
rity." in its broadest and not al¬
ways
its
best sense,
has been
firmly installed in the American
internationally. We must simplv recognize that we are there,
right in the middle, and make the
best—and the most—of it'.
U
•
God
themselves—and
America's
to
the military
as
leader
nomic
whether
June 30
is
and
Country,
Flag, the Constitution, and
the Holy Bible. But ge e me some
and
ought to take
are,
•
and this" is the fourth
mention
concerning
a
The new eco¬
always,
that
'
,
Thei"e;is no longer t'inie toi
1959
govern¬
part,
States
side,
There
have
been
many
other
eco¬
World changes, of course, but I will rest
The assumption of this role, or the ease on these: (1) global re¬
at least the impact of it, is a post- sponsibilities, irrcvo e a b ly ac¬
World War II development.
The cented, to protect the Free World
United States is. today, the ac¬ against an overwhelming surprise
knowledged defender and finan¬ attack, (2) increasing governmen¬
tal regulation of business, (8) the
cial "angel' of nearly every coun¬
try outside the Iron Curtain—and emancipation cf most Americans
a
beneficent foster uncle to some from ignorance and dire povertvv
and
of those behind it.
(4) an accelerating willing¬
Far from avoiding, "entangling ness, if not eagerness, to accept
foreign alliances," as Washington the bounties—without the burdens
"advised, and minding our own —of the "government."
role
new
ganizations,
;; ■
ASSETS
a
independent-minded
people of a "welfare
state"
concept.
This
has
been
described as a growing conviction
.
•)
relates
first
-
World
Free
Our
-Ligh.
CONDITION
reverse
reliant
international organizations. Need¬
STATEMENT OF
Trend
has
nomic structure is threatened
gest four areas of peculiar concern
less
COMPARATIVE
most
this juncture someone
At
pronounced trend toward accept¬
ance
by the traditionally self-
businessman
innovations.
cific
We
NIAV
American
the
Home
State
I
you
Weil
the coin
point
re¬
now of general conditions
attitudes rather than of spe¬
sary
NASSAU COUNTY. LONG ISLAND,
remain
to
don't want him
vve
progress.
changed America.
speak
and
is
Welfare
But
that affects the
today? 1
recall,
or
American
vvorld.
damned."
predecessors
were
shocked
by
Henry Ford's $5-a-day wages are
oceans
1959.
the
tell
government—"Be
and
Motors,
General
for
vice
of
series
is
nation
the
understatement
of great change—.some of i I
for the better.
All of us herc\ in
hi said was a great truth:
is
an
time
What
that point.
on
is
obvious to note that we
ligned for what he was supposed
to have
be
are
widely ma¬
was
to
in
It
for
no
lengthy exposition of
point; I merely leave it with
for your own evaluation.
this
American
What
nessman
politics.
is
ness.
Polities
wants
people
It
content
longer
This
to.
important lo us, as business¬
recognize what
has changed—and what .hasn't—
what may safely he discarded and
what must he kept. Your findings
on
that point will have a lot do
with your politics—end your bnsi-'
"Busi¬
*
no
average—and
in polities, to
men
itics.
business
make
most
versal
Whether
religion.
our
elaboration imlegal context of
At any rate, the ""average man"
..
is
Yet not
try, this government, this
which
remain
unchanged.
suggest this great truth as one
I
an
Business should be alert in pro¬
a
of
taxes.
in'evaluating
businessman,
everything has changed.
There are elements of this coun¬
,
self interest.
Business Belongs in
politics has
The businessman in
been^ui intriguing figure, to me.
for many years. My own personal
with
forming
narrow
;
"times have changed."
"practical-minded"
the Governor asks
political action and warns against
mention,
I
work.
ment,
political position, surely has to
take cognizance of the fact thai;
interested in the expense of government, our
monetary policies, international economic position, and other
problems requiring answers that do not go away or disappear
at the sound of high sounding resolutions.
He lays down the
nessman's Crusade" limited to pursuit
at
been
approval, our seven-league
strides in education,working con¬
his
them if they are
ABC's of
with
a
the
ditions and wages, public health, simple, powerful, straightforward
We are even seriously contem¬
"mass communications, transporta¬ precepts pf the Bible.
plating a trip to the moon. The
tion and travel, housing, and. gen¬
When we deviate from or fall
only
question
at
the
moment
eral social en ligh ten men t. I men¬
short of these
principles, either
seems
to be whether we will be
tion
also,
with
less
enthusiasm,
in
our
laws or the execution of
shot there or blown there.
V
the progressive income and estate
them, we are in trouble. I shall
ALLAN SHIVERS*
By IION.
Governor of the
have
rocket's throw from
only
anywhere.
now
Business in Politics
Former
sand-mile barriers of distance, are
will
in
are
course,
have
economic
to
problems,
forget-—they
be solved by people
but
don't
politics.
In
1900
the
United States
lars.
public debt
was
one
of the
billion dol¬
Today it is almost S286 bil¬
lion.
From
1789
through
194Q,
the
what
we
democracy
—
Federal Government collected $410
altnough it is actually a republic
—are consistent with the precepts
1950's it has collected S612 billion
These fundamentals of
call
our
American
billion.
During the decade of the
Volume
190
Number
5862
.
.
The Commercial and
.
Financial Chronicle
fitj)
and
—one
its
in
as
half
a
entire
tinges
much
as
—r
years,
creased by $38 billion. -V.-. 7-'.'r"
.Does that worry you?
It wornes
me.
^
Running
•-> .*.<•
deficits
prosperity
is
times
in
the
of
one
disturbing. During 1958, lory ex- laboi\.unions has to have a 'sweetample,
steel
exports i ft dm • thev ^enhP^hit^to make it palatable to
United States decreased 40%. Our labor leaders.
.
previous
history,
during those same ten
.our public 'debt
has in-
Yet
of
^lassie
..
we'ai^ome
that .Wc
tnat
vou
you
aie
..
^
St2
some
Stailkr'
oimuai
PHtS"
cou!d:
Staten-ents
statemei.ts
°Vm"tanoUUcalissue I,
Ay
will
An
to
me,
important reason, it seems
for the businessman to be
interested
in
politics.
■
should
We
be
interested
facts
of
financial
our
Gold
flowing out of tiiis
alarming rate; •
rates
the
near
diminishing returns in
The
Government
point
of
to
set
answer:
tfcSpend more
cheap
cut taxes
body make more
.
.
.
business
in
line
trols."
*.
keep
.
.
...
with
our
we
are
and
sane
un-
sensible
in
fiscal policies."
recen?
A
in
article
the
farflung. and
"Wall
This
sort
of other
thing,
of
of
creating
bad.
It is the
40
some
They
with
are
the
of
will
us,
this
what
the
as
is
why
Our
or,
and we
own
pop-
an
estl-
by
of
distinguished
so
tics—that
businessman
interested
in
in
Secretary
am
firmly
a
politics
—
If
continuing large
prosperity and so almost inevitably drive up prices,
we may price ourselves out of the
.
.
world
we
run
in
market.
discharge
bilities
our
if
How
are
to
wo
worldwide responsi-
our
international
eco-
question:
us
and
to the third
_
(8)
Are
you
international
Officers
23
engagbusiness from
Hazelton
Mirek
are
J
Circta
Stevenson"
M.
Berger,
assistant
secre-
'
tary.
'
with
economic
tion?
come
Remember
has
to
function
we,
as
the
in
behalf
of
protect
posi-
among;
fore-
our
STATEMENT OF CONDITION
June 30, 1959
<
w'e
Cash
in
fervor
The
the result
an
in
unless.
glorified
is
arena
or
10,119,373.66
83,079,175.95
Mortgages
vital—
Customers'
Suggestions
7
-
.
1,911,161.44
..
.
Bank
.
American businessman
334,888.53
......
Liability for Letters
of Credit and
*
.
Estate
Accrued Interest Receivable.........
us.
Sums Up
47,301,450.79
Loans and Discounts
Real
broader
more
21,142,023.31
Other Bonds and Securities.
class
conclusive for all
more
S
...
U. S. Government Obligations
attempt
self-interests
a
Hand and Due from Banks
on
Crusade,"
merely
than that—the issues
of
RESOURCES
effectively
Acceptances
2,881,785.77
.......
...
Building Owned
46,607.97
Furniture,Fixtures and Improvements
01
0
w sug"
M-suons.
(1) Keep jpfprmed about your
government,'
national, state and
local levels.
1,318,329.18
Other Resources
701,331.82
$171,842,128.12
,
Have the courage to take
on
a
important issues and to
views known
your
lative and
on
governmental
LIABILITIES
legis-
;
policies,
Deposits
Participate
personally in
compolitical
affairs
in
your
Unearned Discount........
munity, and encourage
pj0yees to do the same,
Liabilities for Letters of
your
Make
an
effort to
mental issues in
(5)
see
Credit and
that'
informed ol' the funda¬
are
politics,
Cooperate with likeminded
...
»
f*
-if
,•
2,884,785.77
Acceptances..........
Reserve for Taxes and Interest..*......./
343,433.49
Other Liabilities
825,313.68
..j./..a...i
...
c^lzens>. in
out of ,business
tircj®s> 111 political action.
J'0;', vini'1,!,,!
Lr^
nlnn
,
0W1?
u„
Reserve for Bond Investments.!....
147,711.56
s!:Reserve for Possible Loan Losses
2,156,403.18
Capital Funds:
believe, in
contllbution to good governmore,
you
Even
can
if you can
hardly
Capital Stock 7.^/77.7.$2,459,875.00
Income
Debentures 3,750,000.00
Surplus and
Undivided Profits 4,636,028.44
Reserves
11,671,003.44
825,100.00
-10
n^ghborhood, is a gen-
nri' this!
Do
do
1,395,219.01
cm-
(4)
others
$152,118,228.29
<
do
no
afford
to
$171,842,128.42
*
No losses
are
<uiversely al feeling this
known
to
reserve
exist.
"
Offices
less.
MANHATTAN
local
some
that the legislators are inclined to
grow
of
political
nairow
labor"
Elected Director
pork-barrel project—small wonder
our
of
than
more
"beat
we
pass
on
of North America
r
care of our-
industry, will not succeed
politician
a
climate
of
help to create.
businessmen and citi-
opinion which
if
closest to sharing
that
traits
Commercial Bank
less.
(he election ol sound Congress^tat^ Fegislatpi\s,m AIdei'men
an^ other law-nicking officials is
quite likely to be more important
(° y°u than the election of Governors and Presidents,
Political action—even the choice
°t 3 President — begins in your
own ward or
precinct.^Doing your
principles.
yrour
lators
■
Competitiveness
concerned
dates who
for
money
that
high-soundmg resoiutions favoring economy and budget-balancing—then, the next day
or the next week, wire our iegis-
.
Our World
at'
,
(61 And finally—remember that
of political particithat is both broad —i n a
pation
,
be
program
zens,
nomic position weakens?"
And that brings
Alexander
are:
'
mmnit'ested- ffl^hfi
be
must
poli-
must
the
Treasury, my
sense of understanding and evaluf'ellow Texan, Robert B. Anderson,
rating public issues—and specific,
says:
when it comes to being for candi-
deficits
securities
a
Mark H.
Directors
have termed the national
conflict.
million
convinced that business is in
busi-_ this interest
it dbes.
I
the
resurgence
century stand
of
the, make
population
increase
moie
.
"Businessman's
some
as
(2)
end
present
That
Thus the "familiar story" of depredated currency is beginning to
be an American story*, too.
is
in
ihv>
You'd better be,
Finally-—how cab
show our interest?
them,
world will double.
discount.
Here
ins
offices
#
The
100 million. The demands
upon
our government
at every
level—and our government's deyet—
mands upon its—will grow, instead
In mid-May I happened to be in
ol" declining.
Paris, France, and I found the
And at every turn, the crucial
storekeepers there unwilling to and conclusive decisions will be
accept American currency except political decisions.
course
dents.
.
■
.
jobs in the next 25 years -these problems will'not "just go
mated
Of
nf
.*!f.as reactionary.- Our crisis
.
management relations; the deveiopment of natural resources for
This
is
something, then, that
happens to the "funny money" ol
other
countries,
not
ours.
And
nessmen?
Vocciik-rnHnh
Samson Associates, Inc.. is
Secretary; and John Foun- Indent; Lorraine C. Stevenson,
tain; John Rasch, G. T. Yuan, and vice president and treasurer; Ger^
Fred i Schwarzkopf, Vice-Presi- aid M. Grosof, secretary; and
ls within ourselves. . . .
Are you really "not interested"
capacity t,a in politics?
4
answers.
good and
are with
Before
a
with
.us
The businessman, as a good citirecognize that all these
and many other problems—labor-
ulation
you,
niihiic
w,len .we,. should take
to
modern times."
Does this concern
.
^°,C;
Production; '.^ve wai1^
/Soyerhment to take care of us
between
the
a
in
vvant
we
jt. is
familiar story to most Europeans,
has
never
touched
America
in
at
walfp
such
.
Not all of us will like the an
swers. We need to remember that
in business and politics, as in the
rest of life, our choice is rarely
away'."
.
national' debt-
oihilitv-
answers.
need, all the more, perpolitical office who have
Other Problems That I)o Not
G° Away
vertible
countries. This sentence caught my
.
jn„
con--S#yes;wve_ condemn those
mandatory
foreign oil.
in
more
".
placed
we
ol' our currency's going "soft,"
that iSj ceasing to* be freely con-
eye:
"nimitri
Cattier,
urer,
numerous
national
the greatest good; the building of
highways, hospitals, and schools;.
ger
money
the
We do not have all the
Thus
the
the
PhairmmT
Jean
are:
PreSnt-'
G
Oraerih" Ex'
ecuttvl Vice-President^.tarvJ
'S5L^ ?
iur
aliisecurity
being impaired by excessive imports?
The President thought so
Is
Street Journal" discussed the dan-
into
esiciunsneu
sen, must
America
in
going to be promoted
ue
choice of the greater good
more often, the lesser evil.
that
to
laims
ances?
money
keep big
price con-
answer
"The human values
less
7
v..
BRIARCLIFF MANOR. N. Y._
'
Officers
(4W
'
•
.
What of the effect, then, on our ^ ,; ''^e Pamper criminals and subrelations with other countries/ ill ^wejsiy.es. _when we should punish;,
let every-
...
was
not
people,
our
Form Samson Assoc.
Ques-
-
made by President Eisenhower when he said:
are
at work.
find the best
Proponents of this blithe philosophy usually include an attack on
one
security ol'
'
Panamanian corpo-
*blic m0Dey.
'h
] ^ ,)f
international j.government subsidies; dangerous
,m
i«'>:SiPfiatibn.cs0..many lav sh p^itical
entirely true,. uroinises''such a
staantic jrerhTn
■
s,
"hard money."
The
complete
of
the inclination and the
heroes in the
Congressional halls eager to step
the
announce
Benjamin S. Clark, David Weld,
Henry W. Meers, Ogden White,
Jacques
Appelmans,
Robert
L»„
owned
subsidiary, White, Weld Interna-
time b'omb hanging over
a
These
It this was ever
it is no longer true today.
sous
forward-with
forces
trolsbn
borrow.
.
the
when he
nearly exhausted both its
capacity to tax and'its capacity to
are
Co.
Kernan,
Jean
Dimitri
Yassukovich,
r,
Americans believe this
the government's concern.
have
there
the
.
our
many cases;
forced
Indeed, to quote Senator Harry
Byrd, the United States seems to
course
debt is
it, and foreigners will
cheaper.
-A- A
All this, you might say, is not
aiiuuiu
higher rates or see its bonds go
begging on the open market.
Of
&
e
-j-
debt mounts, and cannot
protection of domestic industries? >.e
coun-
an
Tax
Weld
Subsidiary
Francis
11 i
a
condition'
Redemptions of government
bonds exceeding purchases;
try at
it
C
"Sat7„n'aof®, ^lfv'3 GenUlard.Tncf'Harold Mandeisom
f
or
!u«nc
commerce
electing to Congress persons who
are willing to lace
up to the harsh,
..
.
SbriX
are
_
White,
each
If™"1,d
exeejylt by 1 umous iniflation
repudiation. The Federal
be
ne
c>u.o
billion overspent this year, and if niacce about a great many other
fe touch-and-go -for next
year?, products: barbed wire, 'bicycles,
be debated, and decide
pollticians-the ones tee elected. -
out-promising
Japan or-Europe pipe to be de- other, and elections become little
livered in the Argentine for $28 more than a trade of favors for
a tonless than the same pipe costs votes.
StontoVtatot^eDfe Wchn" hutaCred"at th°
cern
cei n
Internat'l
company had a first-hand il- -V''Our public men are affected
by
lustration of why this is happen.- this corruption of democracy. Thev
tag; We can
own
).tnchase'-Iroi^ath.er:, compete hi-.
White,
While, Weld Forms
.
cynical about "the voice
of
man
the people."
116 Fifth Avenue
528
Paul
Mazur, a partner of Leh¬
Brothers, has been elected a
•
1400
Broadway
Broadway *115 Broadway
318 Grand Street
member of the Board of Directors
Translate that into Bob Andeivr- Smajl wonder that they are in-and o^ the Executive Committee
son's fear that "we may jprice our- dined to evaluate a vote
by the 0f Federated Department Stores
selves out of the world market." good it will do
them, rather than jt was announced
by Fred LazActually, this has already hap- good it will do the nation.
For
arus> jr>
Chairman of the Board.
pened to an alarming degree.
this, we the people are to blame, jyjj. Mazur is also a Director of
One sample is described in this
Corrupt Unionism
recent statement by ore of your
of
.'
Lehman Corp., Collins & Aikman
In a recent ad ress in Chicago,
prominent Californians and my
c&rp.. The One William Street
good friend, Reese Taylor, Chair- Senator Barry Goldwater ot AnFund, and the
National Broadman
of the Board of the Union
zona said it this way:
casting
Company, Inc. He has
Oil Company:
"... We have ccme pretty far written
many articles and several
"The
nation's recent losses in along in bad government when a
books and has
contributed to a
'export
markets
are
extremely bill to end flagrant corruption in number of
--
19
^adta Corporation
,,
.
.
,
anthologies.
America,
.
-
-
BRONX
—i—-
352 East 149th Street
h-
—
!
BROOKLYN
1574 Pitkin Avenue
781 Eastern
Parkway
•
•
815
Broadway
465 Kings Highway
QUEENS
99-01 Queens Boulevard, Forest Hills
14-15 122nd Street, College Point
Member Federal Deposit Insurance Corporation
-
,
The Commercial and Financial
Chronicle
.
Thursday, July 9, 1959
.
.
(120)
20
the first quarter, but a few items
accounted for the bulk of decrease
tween $15 and $16 billion for all
in the total cargo movement Fully
of 1959, or at about the level of one-half of the decline from the
the
first
quarter.
Imports are year 1958 to the year 1959 was
expected to reach $14 billion or recorded for raw cotton.
slightly more, which would give
The sharp variations in the vol-
World Shipping Prospects ^
For American Flag Operators
By SOLON B.
TURMAN*
1199554367--1199554786-
the United States
Co., Inc.
Lykcs Bros. Steamship
President,
the not too
and discusses the
favorable long term prospects particularly, as he sees it,
affecting shipping in the Gulf Coast area. Noting that the
U. S. competitive position in world commerce is serious, and
that maintenance and expansion of present markets will not
be easy, Mr. Turman avers we should make our capacity to
compete in world trade a paramount objective since economic
growth and full employment depends on our success here,
The common carrier shipper notes that fully one-half of export
decline in leading commodities from 1958 to 1959 was in raw
cotton and he looks to return to competitive cotton pricing and
-L
'
As
to our stock-
summarized
I
holders
,
_•
1958-1959 (Estimated)
(Projected).
Ports
Ports
2,125,000
2,337,000
1,387,000
p,654.000
54.4
65.6
65.2
73.5
5,732,000
2,750,000
(5,000,000
to
16,000,000 "
4,473,000
77.3
75,0
ued hopefulness as to future pros-
due
of
effects
the
to
excess
an
reduction
coupled with
ships
in
the level of foreign trade.
Ship
Surplus
As
est
World
Tonnage
of the greateffort in world
consequence
a
shipbuilding
Jhe
War
-
completely
been
the
world
chant
whi£h
on
the
inflicted
II
world has
merchant fleetsi-of the
and
xjvpreome
has >
today
more
time
than at any
ships
in
history.
,
first
Intensified
about 2% million bales is
while most of this idle tonnage
the category of the bulk
by the Korean
War and then by the Suez crisis,
ree-world shipyards, and particu-
In
Japan and West Germany, have accomplished
prodigious
leats of production.
The
year
1959 will probably be the
third largest year in worldwide
shipbuilding, being surpassed only
by the boom years* of 1957 and.
in
Foreign Trade of the U.
A...
After
in
of
*nrid tonnage
tonnnco
world
At
of
the
over
present time the excess
free-world's ship capacity
the
available
weight
weignx
cargo
million dead-
7Ua
each
tacn
for
xor
tons
ions
amounts to
cargo,
5 and
between
the
between
balance
drv
cuj
the
mc
of
oi
This lm-
and tanker fleets.
and
supply
demand for ships has been aggravated
by
x,
the
reluctance
the
(1)
shipowners
of
on
,.
J
.
.
part
to
retire
.
i
' n i ^
decade
ofr unparalleled
a
the foreign
expansion,
the United States reached
tlac*e
ar)
export
annual rate of about $20.5 tail-
1957,
old and obsolete tonnage, due, in
Estimates
movement
the
of
of
part, to a combination of contin-
foreign trade for the entire year
—.
1959,
prepared by the Department
_<■
r*
♦From
the
<1
talk
a
u
t
k*
Turman before
Financial Ana-
by Mr.
Society of
Houston
it
^ Commerce and Other Govemagencies, don't give much
ment
lysts,
Statement of
Condition
Government
Reserve for Dividend
Obligations-,...;:
State and Municipal
60.490,300.35
Payable August 1st
31,153,409.18
Accrued
Other Bonds and
936,828.89
450,000.00
............
Other
Mortgage Loans-Insured
Guaranteed
or
First
Loans
and
Banking
Furniture
Accrued
Discounts....
and
Sumlus
Undivided
3,942,645.97
Fixtures
1,016,212.49
Profits
Total
Income
Assets
.
•
.
In
the
to
Capital
Funds
and $4
S3
addition to the
above'.'assets
held in
♦he Trust Department total
deducting
$82,182,928.22
due
the
to
been
increased volume of
import trade. For the year
import trade is estimated
to
approximate something more
than $14 billion as compared with
exports of about $15 V2 billion.
T
our
1959 this
,,...
.
„
..
.
..
elimination of the
"dollar
TRUST
billion
pillion.
and
fected
narrowed
our
COMPANY
member
federal
deposit insurance corporation
Passaic
County
aspects
Gulf Coast
they may affect the
(1) The tremendous industrial
expansion along "the GuJf' Coast
its great hinterland during
the past ten years has generated,
and
of
of cargo, many
being required
new sources
many
these
products
by the foreign countries.
general,
trial
the prices of raw
within relatively
vary
markets
cf
the
industries
are
world.
This
In the United
about $3.04—
$3.26 in coal.
These wages
with about 65c per hour
West
Germany and 35c per
hour in
Japan. While it is difficult
direct comparisons befringe items and other
benefits, it is plain to all compe-
to
make
of
tent observers that the wage
dif-
ferential betwen the United States
and its
to
principal foreign
commer-
export.
flexibility
and
area
"enables
tile
firm
a
such
bur
as
own
improvement in
flow of foreign commerce be¬
in
share
to
foreign trading
ol' operation,
wide
The
(3)
the
twixt
any
States and
United
any
the
shifting pattern of our foreign
trade.
.
•
*
(4)
growth
continued
The
import traffic during the past
of
few
provides a sound basis for
believing that' Ibis trend will con¬
tinue and enhance results of fu¬
years
ture
operations.
v
world
Conclusion
prospects
for
for international
near-term
The
shipping,
for the ex¬
United States,
trade, and particularly
port
are
of the
trade
far from clear.
Presently
transition.
we
are
United
in a period of
States imports
and exports are almost in balance.
For the first time in recent years,
the balance of
ments
international pay¬
against us. The
is running
gap" seems a problem of
past. Industries in the free
world have been rebuilt and they
"dollar
the
are
highly competitive with Amer¬
^urers
agricultural surpluses which must
find
their
way
into the world
'
.
..
..
..
,
„
The United States has very
large
market place by one means or an¬
other.
The
and
export of American capital
know-how is pro¬
American
substantial
ceeding at an acceleiated pace.
increases in rcai wages. It is likeForeign currencies have been
iy that such wage increases will
tend to narrow the pressent wage
these countries as
compared with the United States,
and thus permit American goods
advantage
.
limits in the major indus-
is not true of wages.
all of which portends a continued
production of products susceptible
it will seek and obtain
normal
higher wage costs.
materials
products in the Gull' Coast area
possible a continued expan¬
sion of industry in the Gulf Coast
area
and the Mississippi
Valley,
makes
ican industry.
There are indications that forelSn. lubor, particularly in vVestern
Europe, is becommg^juore
militant and that over th^lyears
markets.
This continued
disability is primarily attributable
In
(2) The great abundance of oil,
gas, fresh water, sulphur, phos¬
phate and other mineral amlfCWiit
more
rril
export
our
ing signs are that the current dip
in exports may be due, at least in
part, to the tapering off during
1958 of the European boom which
resulted in a lessened demand for
U. S. capital goods. The elimination of the "dollar gap" and the
Cbility of foreign countries to sell
their imports in the United States
permit the accumulation of
adequate dollar balances,
|^us epyDling expanded purchases
0f u. S. materials - and manufac-
rapid internal inflation in
the United States during the postwar
years
has undoubtedly af-
cause
in
fhc
nnnrmphinff $30
may
gap,' two other
majoi^ developments stand out in
their importance on the future of
our
foreign trade: (1) the prices
of American goods in world markets, and (2) the increasing development of overseas operations
by American corporations.
■
in
NEW JERSEY BANK
•
j
trade, the developments are not
all discouraging. Some encourag-
part, the elimina-
compare
Offices
.
,0 and th.,t
"dollar gap" has
tion of the
about
reserve system
jn
.
billion for 1959.
In substantial
18,655,464.18
$283,445,448.93
as
invest- one oi; these areas by reasonably
operations: since. increasing ortfeereasing its serv¬
total investment ice to any area concurrent with
than doubled its
1S now aPPioachmg. $30
$3.3 billion for 1958 and between
steel
17
{
that Unilecl stall® industry
0
1958,
31,
Dec.
States, for example, the average
hourly earnings of workers in the
mfmbfu federal
h
United States dedicated a substan-
narrow
Reserves
AND
ma'tes
tial portion of its national income
to these ends. From July 1, 1945
to
3,655,464.18
Total
1,092,851.61
319,720.54
Amounts shown are net after
Valuation
2,076.989.48
........
$283,445,448.93
Total
3,969,287.73
$ 6,105.000.00
8,895,000.00
61,757,370.26
Receivable
Other
Liabilities
Stock
21,734,087.82
..
Houses
712,789.62
........
Common
58,434,993.06
........
Loans
Mortgage
etc.
Discount Collected,
Not Earned
Reserve
Stock
Germany, and Japan have
rebuilt their capital plants and are
The
Interest,
Expenses,
Securities
Bank
208,068.25
Reserve for Taxes,
Obligations
Federal
$257,822,849.67
Deposits
$ 42.117,028.76
point that I discuss some
of the favorable long-term
.
history,
in
Koncroi*- moves
postwar
LIABILITIES
appropriate
vorable, it would seem
at this
Wc.st
the sec-
J
r
p,as„h
U. S.
75.0
4,500,000]
'
In addition to
close
of of business
as
present the trends in our foreign
which admittedly, from
a
near-term view are not too fa¬
military assistIt has been estimated that this
lion in 1957, or about $19.5 billion
anee, nonmilitary grants, loans and total investment will double in the
|or commercial exports alone,
credits, and other short-term aids next
decade
and
approximate
During 1958,' our commercial amounted to a total of $72.3 billion, about SCO billion at the end of
export shipments totaled about
During these years, one of our 1968. During that same period it
SUili billion, or a reduction of primary national concerns was to is estimated that U. S. exports
about
$3»/4
billion
from
1957.
The
narrow the "dollar gap."
This has will increase from present levels,
doWnWard trend
continued into
now
been accomplished, and the However, this projected increase
first quarter of 1959, with exbalance of international payments in American investment in indusport shipments now moving at the
is now a deficit. These deficits in trial plants abroad could result in
annual rate of about $1514 billion, the balance of international pay- increased two-way trade¬
or
about a 6% decline from the
ments are estimated to be about
In this shifting, pattern of worid-
1958 levels and about 21% below
foregoing I have
factually
commerce,
3,750,000!
to
j
Overseas Investments
Western
Europe,
particularly
mation
of our allies and toendsnj
the free woild. In one of the m st
S.
the
in
endeavored to briefly but
operations ot
.
Shipbuilding has proceeded
spite of the present surplus
2,062,000
Favorable Gulf Coast
Situation
While
February, 1959,
^
larly those
/
and, in large measures, the vol¬
ume and profitability of its oper¬
ations are dependent on the level
of the foreign trade. When Amer¬
ican t,4ade thrives and prospers,
Long-Term
operating from much stronger and
the Depart- more competitive industrial bases
ment of Agriculture declared that than before World War II. Economic i n teg r a t i o n in Europe
cargo available to liner companies. beginning with the August, 1959
crop
year,
it intended to keep through the common market is
A common carrier in the for- prices of U. S. Cotton competitive increasing the competitive prese]-gn (iad€ is distinct'from a tramn
in world markets. Representative sure
on
industry and forecasts
or
contract bulk carrier.
Howcotton
shippers have estimated more efficient .industrial combinaever, competition and cargo carthat this new policy should in- tions in the future,
ryings are intertwined to some
crease
exports for the new crop
,.
degree, and continued unemployyear to about 5 to 6 million bales,
. The
overseas
ment in the tramp fleet inevitably 01 about twice the current level. Ameiiean business aie increasing
affccts
lincr operators.
This is
rapidly.
Undoubtedly this tenC!oubly true at the present time
Chajfgflng Patterns in World Trade dency has been stimulated by the
bocausc Gf the worldwide recesEuropean common market as well
During the immediate postwar ,1g
sj011 \n volume cargo movements
die competitive disadvan-and
in particular, because of the years one of the principal con0f American "goods
in"the
corns
of
the
United
States
was.
for
Ja f
in
world market place.
recovery
of the foreign
The xj, s.
the relief i uii economic rehabilitradc of the United States,
Department
of Commerce esti¬
carriers, it does have a dampening
effect on the volume and rates of
;
-
.
Lykes is a major carrier in the
foreign trade cl the United States
•
this period.
ond lowest in
falls in
directions.
area:
pects and the relatively low prices
of world steel scrap, and (2) the 2,130,000 bales in the 1955-56 year
to a high of about 7,700,000 bales
interacting continued high production of new
in
1956-57; the current year of
supply of ships.
faced with an imbalance in
shipping
■
cial competitors is not less than a
factor of three to one.
During the six
years
ending
July, 1959, cotton exports
have ranged from a low of about
with
the
on
benefits.
3.905,000
3,563,000
2,128,000
7,694,000
.
pronouncements
pricing of ex port cotton qre [en¬
couraging and may be indicative
of policies to be adopted in oiher
Lykes participates in the carriage
of that trade and shares in its
Gulf
All U. S.
August-July
April 21, last, we are
world
on
by the following
From Ports in the United States
-
1959-1960
area is shown
comparison:
com-
Bale Exports of Cotton
'
■
—.
exported from the
0f cotton
umd
early decline in
Crop Tear
markets
growth to recoup exports to historical
diverse Gulf Coast
trade surplus
of"the leading export
Most
modities showed
foreign commerce trends
term
near
shipping head covers
world
Texan
Prominent
a
abo4™$lTb?monal aCtiVitiCS 0i United States and from the Gulf
J
favorable
exports at be-
forecast
Recent
These
for encouragement.
reason
estimates
of
maintain ancU improve their
position in world
competitive
markets.
stabilized, the European common
market has been created, and the
dominant
United
sppply
States
in
position of the
world
markets
has been reduced.
Presently there is
a
surplus of
ships, world shipbuilding contin¬
ues, and the scrapping of old and
obsolete tonnage has not yet commenced .on a scale necessary to
In addition to these normal economic forces, there are other underlying economic factors which balance
supply and demand.
apparently will continue to reFurther, the Gulf Coast has a
quire the export of our large
agricultural surpluses.
At the new, expanded industrial base
which seems destined to
create
present time the United States has
new
types of cargo which will
on hand major surpluses ii\ wheat,
find their way into world trade.
corn, coarse grains and cotton—
which will increase during 1959. Competitive pricing of export cot¬
ton
will permit
recoupment of
Present indications are that our
historical
markets
and
imports
Government will follow a more
competitive policy with respect to probably will hold at present high
pricing these surpluses at world levels, and * may even increase.
These considerations, and the ecoprice levels.
-
Volume
190
Number
5362
.
The Commercial and
.
.
Financial Chronicle
21
(121)
nomic
diversity of the srea, are
encouraging, long-range factors.
Billard, Partner
The competitive position of the
United States in world commerce
is
serious.
fact that
to
We
as
a
Our
We
The
not be easy.
maintaining
of
national
and
an
The
as
result these
a
bonds
By Milw. Go.
207
Michigan Street, members of
Government
sector
the uncertain
on
of
interest
Due
than
to
the
was
of
and
case
the
end
money
with
the
Government
-
;
b
„
The
ment
question
of
the
bonds
or
not
little
...•■••
-
to whether there will be
as
long-term
interest
rate
oeiling
a
Harry P. Leadingham
of
Exchange, has
business
for
Prominent in national investment
banking circles, he has served
member
a
of
the
district,
as
com¬
mittee of the National Association
of Securities Dealers and also on
the
board of governors and exec¬
utive committee of the Midwest
Stock
Exchange.
^
Harry P. Leadingham,
tered
representative,
named
vice
a
a
regis¬
has
been
president
of
The
Milwaukee Company. Before join¬
ing the firm in 1955, he served
with
the
Associated
Press,
news
agency, in a- number of executive
assignments including chief of the
AP
bureaus
and
Milwaukee.
both New Orleans
in
-
bit
Stock
Robert
Steamship
Being Marketed
Edelstein
York City,
fered
on
Co.,
of
New
June 1 publicly of¬
shares of common
146,912
voting-stock (par 10c) of Isthmus
Steamship & Salvage Co., Inc. at
82 per share.
The
net
proceeds
will
be
used
for the purchase of
a 5,000 dead¬
weight tons vessel and for work¬
ing capital.
The
company was incorporated
Delaware law on March 3,
for the purpose of
under
1956
in
engaging
the
*
business
of
salvaging' the
cargoes
of sunken
ships
general
steamship
business.
and
the
new
a
SHEBOYGAN, Wis.
Sheboy¬
—
Investment Co., Inc., has been
formed with offices at 607 North
-
.
these
on
to the
measures
the
point where it would have
engage
Officers
in
a secu-
are
Har¬
Vilas
of
&
Island
.
~
York
New
York
Exchange, an*
Clohessy is
associated with their firm
search
-
Stock
nounced that James F.
Uni¬
v
^
Hickey, 26 Broadway,
City, members of the
New
of
the
Investment
as
Re¬
Department.
.
of
Sciences
is
and
a
To
Represent Lehman
and
Expansion
$20
Center
for
million
to
be
Lehman Brothers
Devel¬
on
dollar
the
Mr. Cornu will make his office at
in
located
announces
appointment of Edouard Cornu to
represent them
in Switzerland.
the
8 Rue
Du
Marche, Geneva Switz-
zerl'and.
City.
STATEMENT
AS
OF
OF
CONDITION
JUNE 30,
1959
NATIONAL
BANK
A
an
of
Passaic
NEW
County
JERSEY
adverse effect
Assets
use
-
Cash and Due from Banks
of
long-term Government bonds as part of the re¬
funding operation by the Treasury before the year is over appears
to be very much ol a
possibility. It is believed by many money
I#
and
Municipal Bonds
Other Bonds and Securities
Demand
Treasury will use either or both inter¬
mediate and long Government
bonds, if only in a token way, in
its refundings as soon as the
leeway is obtained for a higher
Loans, Secured
Demand Loans, Unsecured
Time Loans, Secured
interest rate
Loans and Discounts
level
little
question
kind
of
but
for
such
securities.
There appears to be very
Treasury is anxious to make some
its debt extension ideas, and the sizable
coming along affords just such an oppor-*
what
tunity.
James Richardson & Sons, Winni¬
the silver medal for top
while P. W. Speller of I
Equitable Securities Canada Lim¬
peg
won
Completed
ited,
list
for
ment Dealers' Association of Can¬
have, successfully
in
Finance
in
the
past year, the Association re¬
ports. The students, employed by
Investment
Dealers
coast
in
and
Brussels,
wrote
and
New
the
of
under
coast
to
London,
examinations
aspects
from
England,
York
City,
covering
Investment
the
direction
Education
all
busi¬
of
the
James O. Finlay of James Rich¬
&
Sons,
Toronto,
was
medal
vice president and secretary.
ductory
as
was
Association's
awarded
runner-up.
course
J.
the
gold
silver
In the intro¬
P.
medal¬
standing.
throughout
Passaic County
in...
Corporation
its
investment
poration.
business
Officers
as
are
a
cor¬
Roger
Springate, Jr., president; W. Roger
Springate, Sr., vice president; and
Mrs Katherine I. Youmans, secre¬
Gannon,
Roberge
(Special to The Financial Chronicle)
Accrued
and
Income
TOTAL
W.
and
Liabilities
Deposits
•
Preakness
$106,721,177.02
107,288,152.17
2,736-,519.42
1,429,387.87
1,281,714.68
2,394,753.04
:
Time
U.
S.
Government
Reserve
for Unearned
Boro of Totowa
Reserve
for
Reserve
for Loans and
and
N
:
Ringwood
Wanaque Boro
316,005.07
$238,011,221.99'
'
Demand
Income
Interest, Taxes, etc
Capital account
•
Discounts
-
.
Common Stock (200,000 sh.$25 par)
4,159,517.79
!
Profits
LIABILITIES
■
5,000,000.00
7,000,000.00
....
Surplus
$238,011,221.99
I
F.
RAYMOND
PETERSON
BENJAMIN P. RIAL
President
1 Chairman of the Board
NATIONAL
Judkins, David Silver¬
John
.!■
ASSETS
Mountain View
TOTAL
Of
PASSA I C
G.
Marcous, have
joined
the
staff
of
Gaston
J.
Roberge & Co., 124 Lisbon Street.
man
Receivable
Clifton
Pompton Lakes
Stock
Fixtures
Assets
LEWISTON, Maine — Maynard
P.
Piper,
Alfred
G.
Bernier,
Maurice
O.
LeBlanc,
Paul
P.
Grimmel,
Roland
A.
Rodrigue,
Gerald
23,375,292.93
10,591,011.60
22,160,371.83
360,000.00
2,588,289.94
403,168.00
1,011,742.39
Banking Houses
Furniture
Undivided
Gaston
Bank
Reserve
Federal
Paterson
West Miiford
tary.
Mortgages
Insured
.Other First Mortgages
Other
Bloomingdale
Commit¬
ardson
Toronto
a
bronze
LEXINGTON, Ky. — Security
& Bond Company, Security Trust
Company Building, is continuing
With
the
was
second
Now
completed
Investment
Toronto
Estate
H. A.
V. A. Guaranteed
standing
TORONTO, Canada — 365 em¬
ployees of members of the Invest¬
courses
F.
17 HANDY OFFICES:
Courses
ada
Real
the
IDAG Investment
$29,189,991.40
62,361,140.79
30,488,943.10
224,000.00
17,219,680.61
671,103.27
1,080,305.60
35,970,175.46
U. S. Government Bonds
State
market followers that the
Gottsacker, president and
treasurer; William A. Gottsacker,
Institute
FdldW 6f the JStoW York
Long Government Bond in the Offing
The
Eighth Street to
business.
Glohessy Mgr. of Dept.
For Vilas & Hickey
.
economy.
medal for top standingrin the ad¬
vanced course, while F. J. Bradley
of
Harris
&
Partners
Limited,
A.
a
condensed
This use of the most liquid issues for new money purposes
by the Treasury has not added to the money supply to any extent,
and as a result there has not been an inflationary increase in
deposits. This has been a very favorable development as far as
the monetary authorities are concerned since it has enabled them
to keep the controls tight on the
money market without carrying
awarded
old
■:
FIRST
gan
rities
.
issue of its bonds with the existing
tees.
Sheboygan Inv. Co.
officers and
,
and when this change in rates for long Treasury bonds
along, it will have to come one of these days because the
Association's
Form
Billard
Y.
manager
New York
it is not expected that the Treasury will be doing
much as far as the long-term market is concerned ih the immedi¬
ate future. Most money specialists believe that
practically all the
new money will be raised
through the sale of short-term obligalions, which have gone almost entirely to corporations, because
they have hacl funds which they invested in neriri-term securities.
ness,
-
Gordon
and
Science
of
showing on
refundings that are
Isthmus
loan
j
To be sure,
31
years,
has been associated with The Mil¬
waukee
Company
since
1955.
&
tion,
interest rate level of 4%
president.
securities
of
New
kind of
some
Government cannot sell
Mr. Slezak, who lias been in the
.
the
how
comes
according to an announce¬
today from Joseph T. John¬
bank
of
men.
now
Academy
complete abolish¬
for Government
a
ization
credit
riVan, of the Committee
V.
as
York. Chapter of The Robert Mor¬
ris Associates,-the national organ¬
Finance and Business Administra¬
opment
Question of Time
a
Associates
well
as
J.'R.
prospective
Only
Credit
York
member of the council and chair-
-
...
Bank
New
Massachusetts
He is
a compromise
worked out is a matter of
conjecture. Nonetheless, it appears to be the
opinion in-most quarters of the financial district that the
Administration, with time, will get pretty much what it asked
for, even though there may not be a permanent lifting of the
long-term interest rate level for Government bonds. Irrespective
been elected to the board of direc¬
son,
the
the Long
versity Law School.
current
tors,
is in charge of the Credit
Department. He is a member of
Technology, the New York Uni¬
versity Graduate
School
of
>
.
-
the
and
charge of research, until 1956, and
subsequently
became
a
limited
partner specializing in oil and gas
operations. He is an alumnus of
securities
.
by
has been with the bank since 1951
member
Williston
the
,
Brothers
v- Mr.
Farley, a graduate of the
College of the City of New York,
new
■Bean e..inv'.■■■■Vto.v
capital markets
announced
Harriman & Co., 59 Wall St., New
York City, members of the New
York Stock Exchange,
an¬
the
of
_
been
banking firm of Brown
Billard
the
defensive side, not only because
disposed of.
It's
ment
part¬
formerly
general
part n e r in
these
.current limit of 4Vi%,
Midwest Stock
general
was
disposals, some of, the intermediate-term Gov¬
ernment obligations have been
selling at prices which would mean,
that a new long-term Treasury issue would have to have a
very;
fancy yield, one thai would be very considerably in excess of the
the
,
has
ger
a
obligations. There evidently seems to be a rather persistent
liquidation, of nearly all Government issues with a maturity of
more than three
years by. the commercial banks.
This is because
these institutions are not only
taking tax'losses, but they are
also obtaining funds which can be loaned out at much
higher rates
that have been
Edward Slezak
Gor¬
Larger
at
Mr.
in many
appointment of Terrence
Farley as an assistant mana-
jvT.
i
of
115 Broadway,
New York.
the. supply' of short-term issues of the
Treasury have increased
also because, of the lack of demand for the more distant
MILWAUKEE, Wis.—G. Edward
Slezak, executive vice president
G.
to
a+
quarters
but
*:
Company,
also
and
Liquidation by* Commercial Banks
Slezak, Leadingham
East
Exchange, have
urlmieemn
admission
the
The
,
The
nounced
firm
economy.
Milwaukee
Stock
tno
.
„
removal of its
tions and then will attract the attention of investors.
have been
the
,
•
The
of
Appoints Farley
Co., members of the
0,
Billard
offices to
instances have gone
to new all-time lows. However, when the interest rate' lbv.ei on
Government bonds is finally settled—and it will be some
day—
the more distant issues will be able to meet
competitive condi¬
depend increasingly on
in competing in the inter¬
Named
Y.
firm
long-term government market still has more'sellers than
buyers and
ment will
national
&
.
inv estment
pay
.
economic growth and full employ¬
success
to
accommodations were the principal underwriters of; the
Treasury new money .offerings.
However, the resale of "these
obligations in the open market pushed the return on the new
money bills up to levels that are 'attractive to short-term
buyers,
mainly corporations.
: •*•••;.. .'./y.
y:.
'objective as
important as the goal of internal
economic expansion arid growth,
arid ritofe;important than the goal
of full employment.. Indeed, both
—-
had
account
capacity
compete in world trade a cen¬
tral /■ objective '
business policy
for funds
the going rate of return, w/iich is
the highest that has been
reported in the last two years. As was
expected, the commercial banks"*because of the tax. and loan
arid strengthening of our
to
,r
Yoik
nership.
.
demand
of
the
make
don
Treasury has been able to meet its current money) needs
through the sale of short-term issues, but because of
the/heavy
us.
market's will
must
New
onnnnnnnrl
announced
the international economy is like¬
present
,T
By JOHN T. CHIPPENDALE, JK.
increasingly dependent on
international economy, while
ly. to be far less dependent on
Maintenance
and j expansion
In Garreau & Co.
Governments
on
Carreau
be
the
N
Reporter
have to accept the
nation we are going
Brown Bros. Harriman
MEMBER
FEDERAL
DEPOSIT
CO,U N T
INSURANCE
CORPORATION
The Commercial and Financial Chronicle
.
Thursday, July 9, 195$
.
.
(122)
22
the
issuance
13,613
of
News About Banks
A
the
Bankers
and
ETC.
NEW OFFICERS,
act
to
will
business
CAPITALIZATIONS
paf" value
the
has
sterling
trust
Bank,
New York, announced, plans July
Manhattan
for
building
8
in
branch
new
a
Brooklyn at Bush Terminal.
A land lease has been signed
taken
has
and
the
bank
sion
of the site at 41st Street and
posses¬
new
located
and
profit sharing accounts.
William M. Baldwin, James
Conrad
King,
P.
and
Kluger
E.^
Chandler L. Mahnken, former
Total
is expected'
Brooklyn,
in
of I960 at
announced
was
Helm.
All
with
are
Metropolitan, Division.
•*<
present Chase Manhattan.has
City.'1
103 offices in New York
{|v
ȣ
140,663,635
28,876,052
32,477,129
holdings—I
33,134.688
45,939,529
discounts
87,235,971
79,495,870
1,832,296
1,800,288
bank,
»ta»w»mtan
NEW
YORK
Total
So, *59
Jun.
Mar. 31,'59
—
TTolal
9,053,250,559 7,947,300,039
7,134,234,194 7,030,085,657
resources
Deposits
Cash
and- due
XT.
Govt,
S.
1,908,718,770
45,698,850
66,353,131
discounts
3,598,547
profits-..
4,919,208
76,101,396
2,372,043
14,595,373
banks
Govt,
S.
Loans
&
Undivided
se¬
curity hold'gs 1,379,789,039 1,401,598.390
Doans A' discts. 3.770.838,031 3,013.8'<7.H14.
Undiv.
33,558,659
rity holdings,-—
U.
...
banks.— 1,902,792,104
from
i__
Deposits
i
Total
Mr.
Davidson, formerly
As¬
an
bank's
the
to
Indiana-Michigan
due
S,
Govt,
Undiv.
791,316,998
4732)71,195
603,393,418
1,635,685,623 .1.468,808,689
discts.
&
805,415,097
se¬
holdgs.
curity
Loans
R.
48,715,518
52,068,053
profits.
Vhj
first .national
^
vr
NEW
bank
city
Directors
Real
of the
Knapp
of
and
Bank
for
YORK
Dec. 31, '58
Total
resources
S
S
7,871,134,909
7",926,482,441
Deposits
Cash
S.
Govt,
&
Undiv.
1,781,904,990 1,767,001,412
..
U.
July ,1
99,385,774
profits—
a
record
Mr.
James E. Kennedy, former trust
sion
trust
officer
Corn
Exchange Bank, New
of
stock, at the
on
S.
elected
Executive
of
Bank
The
it was announced
©Jd H.
July 6 by Har-
Helm, Chairman.
Govt,
rate
of
Loans
&
.
Surplus
in
Mr. Rauscher
9
Cash
and
S.
rred
•
also
a
spe¬
able
Aug. 7 to stockholders of
This
on
Mr.
President
and
formerly
was
General
and
Auditor
Cordes, Vice-President,
Mortgage Department.
—
of
July
Total
resources
Deposits
Cash
U.
Apr. 27, '59
s
S
4,044.999,163
3, 915,858.600
3,334.011,968
3, 237,691.331
963,890,933
775,885,120
U.
S.
will
'59
Cash
S.
Govt.
Loans
3,007,982.103
3,984,566,'837.
921,594,831
854,124,836
844,146,533
815,910,419
10,962.838
profits...
1,652,571
1,651.599
county
profits—
1,267,675,919
25,167,783
1,208,591,326
resources
co., new-york
S.
23.560.060
1.123,957
1.242,000
United States Government Securities....
^
Deposits
-
and
-
due
-
U.
S.
74,229,225
67,962,118
trust
new
715,881.20
109,386,353
163,754,455
1,618,534
1,898,027
profits—:!
7,473,007.44|
Mortgages
Loans
due
S.
1,251,375.90
748,379^44.^' 891,732,353
193,354,603
375,045,181
proifts—
16,659.893
14^,849,211
company,
HARUIMAN
ne W
Jun
Cash
1,123,957:14
U.
Unearned Discount and Other
Deposits
and
due
banks
S.
Loans
rity
Loans
&
."....................
69,635,079.36
"$80,636,945.62
burgh, Pa. Frank R. Denton, ViceGoodlin
Cash
Y.,
of Mellon Bank's Wil¬
Office, and in May of
appointed Manager of
Manager
merding
1957 he was
office:
that
discounts
55,888.500
51,789.060
profits.-'-
1,508,849
1,233,066
of
259,432.408
226,590,876
63,070,969
the
elected
was^
Northern
Processing Center.
Data
bank's
Mr.
Purcell
President.
CLEVELAND, OHIO
Jun. 30, '59
resources—_
Deposits
and due
bangs
Y.
N.
U.
Dec. 31, *58
U.
U.
^
47,301,451
45,904,231
discounts
83.079.176
78,914,020
profits—
2,430.198
4,384,270
Govt,
Undivided
The
Undivided
The
New
capital
National
York,
$100,000
to
Bank
was
and
$250,000
by
from
the
by
a
from
stock
$200,000
sale
of
Liberty,
increased
$200,000
dividend
of
stock
of
to
new
551,648
Stockholders
Fletcher
Rank
&
Trust
Fidelity
Bank
&
Trust
Co.,
179.281.108
118,386.421
5,369,446
-4,996,557
special meetings July 21 Jo con¬
sider
a
merger
of the
banks.
Co.
profits.™-
recommend
to
to
increase
an
in
share¬
capital
through the sale of an. additional
72,500 shares of capital stock.
A special meeting of sharehold¬
has
ers
1959
and
Indianapolis,
to
been
vote
called
on
for July
the
proposal.
13.
If
July
1$
share
thei>held.
on
for
the
of
basis
each
6 V\
record
of one
*
«
By
*
stock dividend the com¬
capital stock of The Citizens
National Bank of Storm
Lake,
stockyvill be
the
present shares.
tended that the
new
be
calls for shareholders
Bank to receive seven
shares of
the merged bank for
each
10 shares ' held.
American
Fletcher shareholders will retain
mon
shareholders
would
The plan
First
to
Fletcher
will hold
of Fidelity
Comptroller of Currency, it is in¬
offered
Ind.,
surviving institution.
approved by shareholders and the
new
American
of
National
discounts
&
voted
on
1
1,624,979
profits.:
106,904,141
secu¬
secu¬
common
38,607,609
90,580,783
95,618,952
holdings!—
& discounts 220,319.947 209, 856,873
104,605.461
Govt,
holders
&
42,114,192
secu¬
holdings-
S.
Directors of The Merchants Na¬
holdings—
S.
rity
Loans
363, 924,996
$
tional Bank of Boston, Mass. have
23,373,539
;
1
373,440,156
from
_
Govt,
S.
rity
NORTH
24,142,023
;
31, '59'
S
401. 112,060
93,971,490
Undivided
165,965,841
.
409.402,760
70,165,912
14,725.284
152,418,22^ 146,561,390
Mar
S
Total
Cash
TRUST COMPANY,
376,762,616 391,772,343
326,490,336 357.104,232
Deposits
4
Cash and due from
67.348.464
171,842.128
OF
BANK
NATIONAL
SOCIETY
resources—
18, 765,284
from
com¬
Comptroller of the Currency,
according to • M. A. Cancelliere,
repre¬
generation of iris
serve as a Director of
$
.'74, 392,433
clue
20th
received from
office has been
the
third
ROCHESTER,
Surplus-
$
National
Pa. on July 7
i
discounts
Dec. 31, '58
Pennsylvania
Bank, McKeesport,
unit of tfTb Marine Mid¬
to
the
in
housed
building at Sixth and
new
Walnut Streets, McKeesport.
banks
Loans
OF
be
will
r;.,:
Processing
Data
WPNB
The
New
bank.
rity
YORK
Wilshire, Jr. of Pitts¬
the
Purcell
W.
the
family
the
Thomas E.
burgh, has been appointed Super¬
visor
of
Western
Pennsylvania
National Bank's McKeesport, Pa,
announced plans for its
19,596,116
system.
sents
56,388,999
resources..
been
munity office, to be located in
Great Valley Shopping Mart, near
East McKeesport.
Permission for establishment of
47,644,2l(i
a
50, 195,057
and
bank
associated
with
both
the
Wilmerding and
Pitcairn Offices since that time.
In 1941 he was named Assistant
Loans
209, 339,208
Jun. 30, '59
Total
the
to
came
has
and
1941
American
112,223,977.38 of which $900,000.00 is expected to he paid off in nine
a year.
N.
Total
2l7, 394,573
BANK
National
Pitts¬
Mellon.
of
Trust Company,
164,603,469
18,091,301
r
S
'
52,052,905
Deposits
months and tiio balance to be paid off' within
$
Jun. 10, '59
•:
AMERICA, NEW
been
151,237,371
Dec. 3i; !58
s
♦NOTE: Included in the figure for Bonds and Mortgages is the sum of
Office
Western
Mar. 31.'59
'
YORK
30, '59
secu¬
COMMERCIAL
160,465.14,
.
&
168,289.01
Expenses........
has
Goodlin.
H.
Manager of the Turtle
Chairman of the bank announced.
Trust Company, Watertown,
York
holdings—
&
4,193,899
and
Bank
Y.
52,167,259
banks
:
N.
secu¬
Director
a
from
Govt.;
Capital &
Deferred Credits
Reserves for Taxes and
Deposits
6,000,000.00
887,154.97
resources
107,733,487
4,159.518
172,709,586
LINCOLN ROCHESTER
Total
General Reserve
198,850,744
y
5
Undivided Profits
354,909,179
168,064.008
brothers.
discounts 111,067,941
159,395,405
—
—
Govt,
land
:
$ 2,662,000.00
1,001,086,409
417,540,556
"$80,636,945.62
...... —
Dec. 31, '58
:
s
.
discts.
brown
&
WESTCHESTER,
from
holdings.
Roliert
30, '59
lioldgs.
&
Undiv.
?* " 609,934.42
...
.'
OF
PLAINS,
"ic
se-V
Govt.
S.
curity
25,081,773.74
.%
U.
BANK
resources...
and
rity
york
859,453,200
.CasTiy and due
froni banks, i
56,427,459
Center
108,657,776
166.259,507
company,
s
"TotMresources
Dei^p'sits;
32,253,532
62,361,141
holdings.
William
28,527,091
34.374,555
discounts
banks
profits—
r
3,283,284.86
'
Stocks
$
381.054,910
$
U.
629,521.625
1,391.104,667
19,742,108.70
Other Securities
b
holdings'. -....I
&
Total
Dec. 31,'58
secu¬
WHITE
Cash
505.481,163
york
29,189,991
secu¬
appointed
from
Govt,
rity
903,774,811
1,524,439,154
new
$
231.220,412
.: 238,011,222
Undivided profits..-
BANK
1.
394,215.184
——
Deposits ;
770,186,655
Jun.
.........
N.
359,901,809 350,036,774
.
_
banks-.':
.
se¬
15,440,874.60
NAT IONAL
BROOK
Jim. 30,'59
discts.
the
19.631.059
25.081,774
resources
Undivided
$ 7,038,704.76 _
7.
11,943,110
15,440,875
profits.--..
'
■
holdgs.
&
73,103,585
7.038,705
3,127,664.879
due
Govt,
Dec. 31.'58
S84.037.971
69,635.079
discounts
NATIONAL
2,656,615,528 2,779,132,984
curity
Undiv.
3.006,165,989
banks...
—
from
Govt,
S.
Mr.
June 30,'59
June 30.'59
31,'58
$
"
'
Mar. 12, '59
216,745,849 212,246,348
and due
Cash
in
y.
S80.636.946
OF-FREEPOKT,
23,354.969
.
trust
resources
Deposits
company
n.
due from
MEADOW
Loans
U.
trust
———
&
passaic
of
$
Total
Creek
20.802,079
18,252.727
holdings
Cash
paid by
and
7,057,610
20,801,967
resources-.
Total
discts.
(Si
bank
paterson, n. j.
county,
$
U> S. Govt, security
se¬
■
*
national
42.369,715
.
hOldgs.
curity
Loans
Capital
Surplus
Mar. 31. '51
secu¬
Deposits
THE
3,367.460,478
banks...
3,655,464
&
rity
discounts
;
3,418,432,609
due
and
from
61,757,370
U.
8,449,253
brooklyn,
banks
63,162,664
61,738,701
3,462,701
discounts
Undivided' profits—
44.88^7^54^ 37,933,539
.
kings
Mar.-31,759
•',*
Deposits *
Undiv.
be
Businessjm June 30, 1959
Building
2,900,775
.
company,
york
:
Undivided
yorllmy.:%;'y
Jun. 10,
from
Other Assets
4.003,369
due from
Govt,
46,251,729
60,490.300
company,"
tr^'st
4
Cash
Bank
26,725,378
holdings
Loans
Deposits
Loans and Discounts
47,682,173
30,524,849
51,018,936
banks
42,117,029
security
holdings
16,212,461
53,353,181
trust,
resources
Undivided
resources
from
and due
Jun. 30, '59
profits
Deposits
...
Total
257,822,850.262,268,974
-
'
new
Cash and
$
283,445,449 286.374,791
resources--.--'
Loans
and
Cash and
se¬
new
Total
Loans
Total
■'
Dec. 31,'58
June 30,'59
.
banks-
703,831,645: "• 804,440.158
curity holdgs.
Loans <Si discts. 1,984.116.036:1, 9,31.725,098
Undiv.
91,803,971
87:376,429
proi'ts
manufacturers
3,198,238
and trust co.
paterson, n. j.
new jersey bank
the
underwriters
Total
banks
Gov't
S.
com pa ny
'59
$
Bonds and
88.806.909
discounts
&
york
due
and
from
pay¬
24.
dividend
trust
new
Jun. 30,
Total
Municipal Securities
94,311,368
holdings:.
Undivided
State and
97,686,043
12,264,100
Loans
guar anty
162,544,646
3,315,163
secu¬
undivided
K.
Vice-
Jun. 30,'59Dec.
Cash and Due from Banks.
102:857,949
i
Surplus
Mr.
morgan
82,565,711
171.111,376
banks
Dec. 31, '58
Jun. 30, '59
Larsen
80,147.350
discounts
&
U. S. Govt,
Jun. 30, '59
—,
Vice-President, and Gen¬
bankers
At the Close of
company,
from
Auditor.
announced
declared
outstanding shares,
record
due
Govt,
rity
elected
—
and
banks
^
Cordes,
6.001,021
york
rsources-.—
Deposits
July 2 appointed John
Larsen,
Vice-President
and
eral
33,075,850
7,655,514
£
9
The Bowery Savings Bank, New
W.
1,673,277
trust
new
U.
4<mf
(5>
holdings-—.'
$
profits
the
assigned to the real estate de¬
partment. He joined the bank in
••*.
present
Mr. Ken-
discounts
schroder
TotaT
-
...
46,499,467
secu¬
Undivided profits--
Loans
Cash
Savings
for
———
Govt,
and
undivided
been
has
one
cial stock dividend of 2.5% on the
on
44,872,178
secu-
rit-y 'holdings-™.
Vice-President
City of New York.
U.
York,
42,060,018
*'
42,542,203
and due from
S.
rity
O
Rauscher
W.
July 24.
Shanahan
that directors had
officer, has been appointed
pen¬
Chemical
the subscription
shares for each five shares held of
93,179,280
14,005,184
U.
315.709,813
279,900.984 274.825,618
315.179,723
——
Deposits
:Jj
Dolson
York.
New
shares of capital
price of
108,904 new
new
17,453,589
$
s
—■
from
due
acting President.
plan
a
Thomas
the
1,511,901,738
discts. 4.078,243,244 3,830,340,391
Federation
share, it is announced byJ. Shanahan, President,
Under
the
plan, stockholders
will have the right to subscribe to
$30
se¬
holdgs. 1,226,842,403
curity
Loans
due
banks
from
U.
0,900,148,2m 7,009,093,334
—
and
Co.,
Trust
approved
stock at
'59
Jun. 30,
the
of
to give
stockholders the right to subscribe
have
84,696,048
>-banks
rity
Estate Department was appointed
Assistant Vice-President.
121,200.971
85,602,408
Jun. 30, '50 Mar. 12, '59
resources-—-
•banks-
122,708,872
r. i.'./
company, providence,
Cash
york
Dec. 31, '58
—
.
Cash and
by
Ira
Hirschmann, Chair™**. The hp.r'
also has named George J. Gross
" announced
was
resources
Deposits
District in its National Division.
William
banking
new
Jun. 30, '59
$
banks
from
U.
3,049,723,114 3,015,327,240
.....
and
schroder
corporation,
Vice-President,' it
as.
Treasurer
$
3,449,509,100 3,422,882,448
resources
Deposits
New York.
sistant Vice-President, is assigned
henry
j.
York, on
Mar. 31, '59
g
-
profits
trust
hospital
island
rhode
secu¬
Deposits'-
*
Director,
First Bos¬
525,000 shares.
Total
has elected Laurence R. Marchini,
of
york
new
Cash
bank
exchange
corn
Jun. 30, '59
Sidney W. Davidson, Jr. has
>been appointed Vice-President by
TJjie First National City Bank of
Govt,
Loans
chemical
_
Undivided
is
secu¬
73,621,24a
79,478,104
profits.™
161,661,402
118,117,786
142,073,495
100,362,891
resources........
—
$
a
investment
of
suing of 72.500 shares will result
in
outstanding capital stock of
•
York,
New
"group
a
due from
&
Total
Bank,
Gotham
The
$
Cash and due from
$
S
'
$
S.i,
rity
$
136 ,726,745
Loans
$3,267,120.
The plan is
subject to stockholders, and the
Superintendent of Banks of the
State of New York approval. "
company, new york
Juil. 30, '59 Dec. 31, '58
chase
the
U.
i
31, '59
gregate
as
national city trust
first
Mar!
100.984,943
banks
As¬
3 by Mr.
the bank's
July
york
new
30, '59
,
152 ,380,843
resources-:
Deposits
J
financing
operation' will
bring
the
bank's total
capital
funds to $15,000,000. New capital
to be raised by the sale will, ag¬
Managers, have
sistant
'
to be open about March
4023 Second Avenue.
At
of its pension
administration
also been
*
branch, the ninth to be appointed Assistant Secretaries, it
Second Avenue.
The
nedy is with the bank's Fiduciary
Division and is in charge of the
by
Corporation.
Capital stock of the bank now
consists of 452,500 shares.
The is¬
'■&
bank
national
company,
$
Cash and
Chase
offering will be underwrit¬
The
ten
bankers headed by The
$10)
Jun
The-
The
(Number
— 25,000
ton
dated Aug.
be
Aug. 28.
outstanding
a r e s
shares,
expire at the close of
on
h
s
July 14. Rights for
issue will
new
and
7
financing
the
on
been called for
REVISED
of
specialjji^efrng of stockhoId-<
ers
CONSOLIDATIONS
NEW BRANCHES
effective June 23,
stock
capital
bring
the
shares outstanding^o 667,0o5.
would
which
shares
a
Iowa
was
from
effective June
increased
S150.000 to $250,000
24, (Number of shares
outstanding
—12,500 shares, par value $20).
shares
C.
C.
Oliver,
Jr.,
was
elected
Vice-President
of,
o
*,&•"
First
The
Joseph,
St.
creased
its
National
*
Joseph,
$1,000,000
by
Effective
shares
value
BANK
"
S.
Loans
^
$
92,912,460
47,056,190
74,328,953
112,240,002 105,639,00.)
discounts
&
TRUST
KY.
Dec. 31, '58
secu-
holdings
Undivided
$100).
AND
75,270,246
Govt,
rity
v
St.
from
;■ banks.
U,
1959
246,447,721 285,160,587
221,578,922 261,944,530
-
—
Cash and due
ANNIVERSARY
stock
22,
a
LOUISVILLE,
•
resources.
Deposits
100th
June
Jim. 30, '59
Total
OUR
outstanding
par
CITIZENS. FIDELITY
COMPANY,
CELEBRATING
1859
has in¬
stock
from
(Number
shares,
of
Bank
dividend.
—10,000
ri
Mo.,
common
of
Bank,
*
National
$500,000 to
Officer
Trust
and
Traders
Kansas City, Mo.
the
profits.--
3,127,221
L\620,470
First National Bank of Dune din,
Fla.
increased its
common
capital
$425,000 to $450,Out) by
a stock
dividend and from $459,000 to $600,000 by the sale of new
stock, effective June 23, (Number
of shares outstanding — 24,00J
shared, par value $25).
stock from
The
The
capital
common
Calcasieu
stock
Marine
-
of
National
Bank of Lake Charles/La. was in¬
creased from
000
by
$2,500,000 to $3,500,-
stock dividend, effective
22, (Number of shares out¬
June
a
standing—35,000 share^par value
$100).
ZIONS
FIRST
SALT
NATION AT^BANK,
LAKE
CITY,
UTAH
Jun. 10, '59
Mar. 12, '59.
g
Total
resources-
Deposits
Cash
--
—
and
due
138,704,583
118,287,101
123,694.255
S.
Govt,
rity
24,158,055
23,259,552
40,630,569
39,840,785
discounts
66,035,506
65,176,591
<fe
Undiv.
profits
&
Mwnt>«r *W#«/
3,648,400
3,433,813
Vice-President Ben F. Edwards,
has
dent's
Bank
fice
been
A
selected
t
s
a n
Francisco,
As
July
Beise's
in
of
personal
President
staff
represent him
istrative
Mr.
several
He
in
at
headquarters,
Loan
Los Angeles
next
and
to
year
1946
of
the
he
Manager
of
help You and
DALLAS, Tex.
as
BANKING
7:30 A.M. to
extra
your
to
at the
in,
save
Billion
Dollar Dime.
More
more
conveniences,
more
family^t ahead faster. See for yourself.
as
HOURS
late
as
...
F rom lis
Travelers Checks.
early
9:30 P.M. There
your
Exhibition. Christmas Club.
neighborhood office.
..
MORE DIVIDENDS
in New York
Banking by mail,
.
ways.
Side¬
Subway
Banking, Downtown at the BMT
DeKalb Avenue Station.
...
Extra!
on
all
your
all
by the Dallas Association
Investment
Analysts for the
coming year
include
R.
Bruce
Thomas, Jr., Dallas Rupe & Son,
president;
J,
C.
McCormack,
Eppler, Guerin & Turner, vicepresident and program chairman;
of
Mortgage Loans,
kinds, featuring long terms and easy
Aj'
payments. Life Insurance, all standard
policies at low cost. Money OrderSTSafe
Deposit Boxes, $4.50
,
a year
and
31/4%
A YEAR
to
open a
Savings Account. Start with
$5
—
up to
count..
.
divi¬
earn
July 1st.
NO TIME LIKE NOW
MORE SERVICES...
balance.
days in July will
dends from
DIVIDEND
highest bank rate-
Deposits made during the first
10 business
LATEST
The
State, paid from day of deposit,
compounded quarterly,
Banking. Walk-up Banking.
Drive-in and Curb Service.
Foreign Exchange. ^Passbook
Loans, self-liquidating, easy to pay. Home Buyers
are
banking hours at all 4 offices. Check by
phone with
walk
officers
New
—
MORE
super-speed, with postage paid both
Dallas Analysts Elect
New Officers
Harold
services to
want
you
hoUrs
more
.the
department.
placed in charge
Supervision depart¬
ment.
elected
everything
save,
MORE CONVENIENCES
was
Loan
to
San
Vice-
as
Administration
In
ways
branches.
returning
the
President
of
Vice-President
a
the bank's
Francisco
Bank
and
Francisco
named
was
find
per¬
during the
managerial posts in
San
in 1931
his
as
joined
1917
filled
You'll
officer.
Edwards
America
1920s
as
officers, and
liaison
Bmk Book/
Pim
Edwards
special per¬
sonnel con ns e 11 o r,
particular¬
ly with senior branch and admin¬
sonnel
*
San
2.
member
a
with
at
head of¬
announced
was
Presi¬
as
t-Pcrsonnel
of America's Calif,
it
will
i
s s
j|
Otpcsit M#urontt Corporation
—
reserves
Jr.,
I
TRhngfe 5 *200
secu¬
holdings—-
Loans
Fofton Sfrttt and OeKolb Avenue
from
banks
U,
g
140,227,857
$ 10,000 in
$20,000 in
Account. You're
an
a
more
as
Dime
little
Joint
or
Trust
than welcome
the Billion Dollar Dime.
up.
as «•
Individual Ac¬
at/
(
Achziger, Fort Worth Na¬
tional
Bank,
James
R.
vice-president, and
Crews, New York Life
Co.,
secretary-treas¬
Insurance
urer.
The Dallas association which in¬
cludes
than
more
60
members
in
Dallas, Fort Worth, San Antonio,
Oklahoma City, and Tulsa is affil¬
iated
tion
with
of
the
National
SAVINGS BANK OF
Federa¬
Financial
Analysts' Soci¬
eties of New York City.
Word
Dallas
1964
has
has
site
been
for
the
received
selected
been
convention, which
is
2,000
more
that
as
the
DOWNTOWN
group's national
attract
than
expected
Fulton
'
®©
nolia
office
under
at
111
the
Frank
opened
West
Million Dollars m
Dividends were paid to N. •
Savings Banks' Depositors ,n 1958.
George Browning.
than 608
of
Number 7 in a
TRiangle 5-3200
ESplanade 3-1900
FLATBUSH
Ave.
J and Coney Island Avenue.
Series of Interesting
ESplanade 7-1200
CONEY ISLAND
Mermaid Ave. and W. 17th St..
a
Mag¬
direction
86th Street and 19th Avenue.
,
Frank Russell Branch
branch
DeKalb Ave..;..
BENSONHURST
<?©75)
More
—
Stree'Cand
to
financj-al
analysts to the city.
CENTRALIA, Wash.
Russell
Co., Inc., has
BROOKLYN
....
.COney Island 6-2200
Facts
MEMBER
FEDERAL
DEPOSIT
INSURANCE
CORPORATION
t
'
24
exercised
normal * controls
NAM Opposes
Industrialist
ment
TVA Bond Issue Proposal
pending proposals
the Tennesese Valley
to authorize
Authority
Corporation
to
issue
and sell $750 million of its own
bonds would he
long step toward
a
nationalization of all American in¬
dustry, according to the National
Association of Manufacturers.
report—"TVA—Full Steam
Ahead?"
prepared by its Eco¬
nomic Problems Department, the
a
—
association
lar
allowing govern¬
to borrow monev
from the market in a
recently issued study.
warns
that the
manner
in which the Congress disposes of
the^ issues raised in those propo¬
sals "will have profound and far-
the
and
"Annual
be
Congressional scrutiny
the
appropriations proc¬
is essential to promote respon¬
sibility, efficiency and honesty.
ess
..
.
The American
is
ment
system
of govern¬
laws
of
one
leaves
This
men.
and
the
Congress
It cannot avoid
with little choice.
permitted to make large-scale
of the
pation and relinquish its authority
over
.
thorize and
the
encourage
the
expansion of the
expense
of
uncon¬
agency at
taxpayers
and
of
emphasizes that
originally created in
TVA,
as
a
Tennessee
River
flood
control and
navigation aid project
with hydro-electric power a by¬
product, is
electric
of
erator
"the largest
now
Free World
and
gen¬
in the
indi¬
energy
States
as
a
people.
trol
of
House
the
Public
the
opposing
purchaser of coal in the
world, and in fact, 75% of the
electricity now generated by TVA
is produced
by steam - powered
plants."
is
passed
Works
House
legisla¬
with
area
obvious
this
Quotes Comptroller General
"Wq
do not think," wrote the
Comptroller General on July 26,
1955, "that agencies of the gov¬
results
for privately owned
operated electric utilities.
and
the
department
weakened
of
a
question
that
the
Representatives cannot
.
.
.
...
gress enacts this, bill without re¬
stricting TVA to the area in which
it
serves
now
failed
have
customers,
to
protect
Poses Questions
of
the
row.
"The
normal
depends
will
freewhich the
for
many
millions of dollars in taxes. Indi¬
vidual
taxpayers .will
be. called
to make up the taxes thus
destroyed by government compe¬
upon
be
tition
with
private
business."
function
.
.
J. C. Bradford Adds
.
(Special to The Financial Chronicle)
limit on expansion
its (TVA) ability to bor¬
only
We
do
not
believe
ATLANTA,
Ga. — Robert L.
Russell has joined the staff of J.
that any
of the government should
agency
Government
a
upon
it
our
at
retail
in
255
revenues
o'f\$71
communities
million,
Missouri.
in
Kansas, Oklahoma, Nebraska—an area termed "The Heart of the
A population of over 2,000,000 is served, Of which half
in greater Kansas City;. other major cities include Wichita,
Joplin, St. Joseph and Topcka. The company competes with other
gas utilities in Hutchinson and Wichita, and municipal systems
in two
other
The
sma'lk communities.
is
area
largely
production and oil'refineries
section
•and is
"
but
well
as
A
.
agricultural,
as
a
a
oil
lead
zinc
and
■
J
and
includes
gas
mining
(the so-called Tri-state area).
Industry is well diversified
growing, including such companies as Phillips Petroleum,^
American Foods,
Gas
Goodrich, etc.
revenues
in. 1958
four-fifths
about
were
residential
and
commercial, and-one-fRth^industrial—and one-third of the latter
,
is boiler fubl for electric generating plants.
The heating load is of
primary importance.' The average sale price of gas in 1958 was
around 40c per mcf.
The company buys nearly all of its gas
requirements from Cities Service Gas Company which has re¬
serves of about 8.5 trillion
cf. in Kansas, Oklahoma and Texas,
together with eight underground storage fields.
Gas Service Company has enjoyed a good rate of growth,
revenues increasing* steadily from $26 million in 1948 to $71 mil¬
lion recently.
Total customers last, year were 566,000 a gain of
nearly 18,000 during the year, and the company is expected to
take on about 20,000 new customers
annually over the next fevfr
years.
These gains reflect regular growth, plus new franchises
which are being obtained—last year four municipalities voted
service franchises to the company and new distribution systems
are being built in these communities.
Also, the company bought
from
another
utility-company the gas distribution system at
Excelsior Springs, a" famous health resort visited by over a quarter
of a million people annually.
Plant
additions "and acquisitions
last year cost nearly $8
.million, and system'improvements will continue this year to take
care of the large number of new
housing starts,-etc. Construction
'
.
of service center facilities and
remodeling of some existing buildcompleted 'at Kansas City last year.
These modern
facilities occupy
three entire ciiy blocks and consolidate all
service quarter^ of the Kansas City, Kansas, property in one area.
The company hiairrtains a residential sales organization in all
ings
but
was
of its
operating divisions and also cooperates extensively
appliance dealers. As the result of active promotion of
appliances, the sale of gas clothes dryers by dealers and
the company increased 24.3%, and gas range sales-were up 5.7%,
in, 1958. With emphasis on use of gas in
kitchen,' home laundry,
water heating, and summer air conditioning, a substantial increase
was realized in the number of new homes
equipped permanently
with - gas appliances. ' Outdoor gas lighting is enjoying a new
vogue, not tonly for residences, but also- for patios, swimming
pools, drives, motels and other commercial establishments.
Air conditioning is now. gaining rapidly both in residential
and commercial fields and about $1 million of air conditioning
equipment Avas -sold - through all channels last year.
Sales ol'
domestic air conditioners improved dramatically during the year
with an increase of approximately 400% over the preceding year.
one
with
gas
these
■
Congress, according to the NAM,
are:
is
Treasury Department.
would be
•
government
by authorizing, other
agencies to enter a
which
The issues posed in the legisla¬
tion which must be faced by
the
Federal
enterprise system
government
field
Should
should
important House
Control over the
public purse was one of the first
rights achieved by the people in
their
centuries - long
fight for
liberty and freedom.
If Con¬
tion.
of
of Repre¬
the funds of this agency
—
service
House
the
treat lightly.
ernment, other than the Treasury
Authorization to issue its own
Department, should
be
author¬
bonds
by passing the Congres¬ ized to borrow from the public
sional appropriations committees for
purposes of the character in¬
-—could and probably would be volved in
this legislation, nor do
interpreted by TVA as a "man¬ we believe that the fiscal and
date" for a 30% expansion of its
debt management responsibilities
power
the
all
V.
committee is to be completely by¬
the largest
vidual
over
whether
or
General of the United States, and
from the views of minority mem¬
bers
of
1
sentatives Appropriation Commit¬
tee shall continue to exercise con¬
exten¬
1'rom reports submitted to
Congress by the Comptroller
Committee
interest
the
...
"Whether
whole?
report quotes
sively
the
in
tions
that, is adverse to
the people of the
of
NAM
The
The association
the
interest
United
privately owned electric utilities.
1933
interest
group
the
.
gas
is
any
.
trolled
Company, with ^annual
Nation."
of
not
its obligation to the people of the
future expenditures independent
affairs President's budget?
effects on
the
of governmental
Service
distributes natural
Minority Report
executive agency.
The
authority sought for TVA in this
conduct
Should a governmental agency legislation could easily make any
and on the future character of our
engaged in competition with in¬ group of men drunk with power
economic system."
vestor-owned business enterprises and lead to serious abuses.
Says It Frees TVA irom Control be permitted to operate without Whether we like it or not we have
effective territorial limitations on an obligation
which we cannot
As drawn, the report asserts, the
forfeit to assure workers and the
its potential expansion?
proposals would free the TVA from
American people that every Fed¬
Should
Congress create in a
any
effective
Congressional
or
eral agency conducts its opera¬
Executive control and would au¬ governmental
agency
a
special
reaching
Gas Service Company
proposals,
the
agency
governmental
a
By OWEN ELY
Gas
Refers to
through
Thursday. July 9, 1959
Public Works Com¬
attacking
mittee,
.
Utility Securities
August minority members
House
the
said, in part:
Congress?
Should
Public
reintroduced.
Last
of
and
.
.
-19^7 when the TVA proposals
were
operation of pro¬
ductive0 facilities be expanded?
Should a governmental agency
be permitted
to act as its own
Treasury Department and create
its own public debt of $750 million
by issuance of its own bonds?
Should a governmental agency
be permitted to engage in largescale
construction of productive
facilities without prior exercise of
the historic law-making power of
ownership
.
.
over
Simi¬
opposition was expressed by
Comptroller General in 1956
government activities.
opposition to
explains
group
agency
Enactment of
In
The Commercial and Financial Chronicle
(124)
C. Bradford & Co.,
be granted such freedom from the
William-Oliver
Building.
Commercial
installations
House buildings and
included
new
S.
U.
Post
Office
and
Court
facilities at the Kansas City municipal
airport.
Capitalization at the end of 1958 consisted of 64% long-term
debt, and 36% commpn ;stock equity. The company's outstanding
bond
■to
.issues all have low rates of interest ranging from 2%%
4.15%.; last year the company placed $11 million-4.15% 20-year
(non-callable iqr five years)*\vith institutions.
Since the company is engaged only in retail distribution, it
bonds
,
,
is
not
In
subject to
November
regulation
1957
the
Federal Power Commission.
Commission granted a rate
a share.. In
order to offset a
(as proposed by Cities Service
the
by
Kansas
State
increase equivalent to about 30c
pending increase in the cost of gas
Gas in
;
filing with the FPC) the company is asking the regulalory authorities in Missouri, Kansas and Oklahoma for $8 million
a
5 '
!.
The company's earnings record was rather unfavorable during
period 1948-1953, when it was under control of Cities Service.
However, in 1954, with the stock in the hands of the public,
earnings increased to $1.86 vs. $1.41 in the previous year.
There
was
a
further increase of $2.31 in 1958, and this year with the7
help "of cold weather Rul ing the heating season, $2.80 a share was^
reported for the 12 months ended March 31. Since the first quarter!
contributes most of the company's annual earnings,
it appears
likely that calendar 1959 will make a similar showing.
rate increases.
;
—ili-te-3oo
iiHil-iii-250
1-200
iL*_| |p_;
150
100
..'.'.YaTil
f.vkv.
1950
1952
m
KxAJ EAioJ
1954
1958
1956
•
J
1959
.
..
_
the
The dividend
\vas
increased from $1.36 to $1.52 about
a
year.
and the -current yield is nearly 5%. The stock is selling at
only about 11 times recent earnings, one of the lowest ratios in
the group of retail gas distributers, comparing with the recent
average for that group of 15.5.
tago
Puerto Rico's progress
-
Only when underlying conditions
ample capacity to
dent
bankers
repay
lend
pru¬
wise
money —or
businessmen borrow it. Thus,
sign of prosperity in
Rico's
definite
a
any 'area
from less than $120 millions in 1950 to
more than $350 millions in 1959.
Puerto
assure
loans do
is
a
the
con¬
sistently rising trend in outstanding bank
W:
loans.
is
indicated
by
the steady,
sub¬
BANK
FOR
security
Municipalities.
PUERTO
RICO
Marvin
A.
conducting
a
from
offices
New
York
baum
.
was
securities
at
37 Wall Street
is
business
Wall
Street,
City. Mr. Kirschen¬
formerly a partner in
Joseph E. McKenzie & Co.
.
Family Plans
N. Y.—Monarch
Corporation has been
HEMPSTEAD,
Securities
formed
with
office^ at 362 Wash¬
ington Street to engage in a secu¬
rities business. Officers are Sey¬
mour
president;
Febo
president; and Ber¬
Deaner, secretary-treasurer.
Troilo,
Nationwide
New York 5, N. Y.
4p
Form Monarch Sees.
Opens
Kirschenbaum
Nationwide
DEVELOPMENT
Fiscal Agent for the Commonwealth of Puerto Rico
M. A. Kirschenbaum
has
much
dealers regarding the
tax-exempt, bonds
of Puerto Rico, and of its Authorities and
econ¬
GOVERNMENT
P. 0. Box 4591
index
years, at
Investors who seek good values should
their own
banks or
stantial advance in commercial bank loans
San Juan, Puerto Rico
same
production
during the same
impressive rate.
consult
-
The soundness of Puerto Rico's
omy
industrial
also risen
tram
Pollack,
vice
Family Plans, Inc.,
Wm. Rayne Forms Co.
is conducting a securities business
from offices at 377 Fifth Avenue,
GREENLAWN, N. Y. — William
G. Rayne is engaging in a securi¬
New York City. Officers are Ben
Wolf, president and secretary, andr ties business from offices at 37
Lee
Wolf,
vice
president
and Broadway, under the firm name
treasurer.
.
Volume
190
Number
5862
.
.
.
The Commercial and
i
Financial Chronicle
(125)
■%
,
>4.
yv
•
t
ALMOST 20 MILES PER GALLON—ON LOW-COST DIESEL FUEL!
In
a
recent
road test,
Chrysler Corporation's experimental Gas Turbine Engine averaged 19.39
fuel.-Simple, lightweight, almost vibration-free, the Gas Turbine is the- only
"likes"
some
fuels better than others, it will
with air. The
working hard
big question:
to
find
can
run on
almost
any
sure
that
.
.
.
at
mpg on
diesel
multi-fuel engine. While it
liquid that will flow through
the Gas Turbine be mass-produced
th^-answer. They're making
true
a
pipe and burn
competitive costs? Our engineers
are
You get the good things first from
CHRYSLER
CORPORATION
25
The Commercial and
this
While
Continued from first page
Gerald Loeb to Head
March of Dimes Drive
M.
Gerald
Loeb,
appointed gen¬
change, has been
eral chairman
I960,
the
of
Y
New
.
the part of the
on
deposits, assets, values, capital, the
value of collateral
all growing,
of
..
.
by
O'Con¬
vestment managers can remcm ber
President
anything byt a bull market, or a
pegged market in bonds. Alter all,
for a in an to have managed a bank
bond account during a previous
bear market, he would now have
to be over. 65 or 70 years of age
announced
none
of the Nation¬
al Foundation.
noted
The
securities
served
broker
co-chair¬
l :a s t
today, since the last bear market
bonds was 1899 to 1920.
And,
the
of
man
in
unfortunately, most of these men
t w o
of
March
G.
drives.
Dimes
general chairman he will co¬
ordinate all fund-raising activities
As
support of business,
and enlist the
portfolio
have retired from active
Loeb
M.
management.
It
is
perfectly understandable
that
with
only
the short bear
markets in bonds in 1931 and 1953
accepting the post, Mr. Loeb
declared
that
rehabilitation
of
33-year experience
with a rising or stable bond mar¬
ket, it is hard for many to switch
their thinking and to understand
polio must re¬
integral
part
o'f the
why it is perfectly reasonable that
we should be in a period of rising
and civic
professional
industrial,
leaders.
In
victims of crippling
main
new
an
offsetting
interest
National Foundation program
while conducting a vigorous fight
against arteritis and birth defects.
He said:
March
"The
extraordinary
contributed
ready
al¬
lias
Dimes
of
the fight against crip¬
service in
a
is
there
that
and
rates,
nothing unnatural or particularly
unpleasant about it. After all, why
should we be so apologetic or em¬
barrassed about higher rates on
bonds?
People have been writing
more and more books recently on
how
they have made millions,
disease. The Salk vaccine„
generally in real estate, by bor¬
has ably demonstrated the organ¬
rowing other people's money to
ization's ability to carry out such
finance
their
operations.
Why
pling
program.
"I am confident
the dedication
organization has shown
and the tremendous
data.it has accumulated in its re¬
this great
for 21 years,
search in virus diseases will help
shouldn't
the
who
investor
puts
the money, who has saved
rather than consumed, get a larger
up
share
the
of
the
from
resulting
capital?
I
earnings
use
his
of
if the holders of
doubt very much
ultimately to defeat arthritis and
$45 billion, or so, in E Bonds are
two other cripplerk
going to complain greatly about
plaguing the world."
the President's request yesterday
birth defects,
higher interest rates on
E
In; fact, if the technologi¬
for
IBA
Correspondence
Course in Inv. Banking
WASHINGTON,
C.
The
Association
Bankers
Investment
is
America
of
D?
'
offering
—
corre¬
a
course in the Funda¬
mentals of Investment Banking in
spondence
cooperation with the Home-Study
of the
Department
Included
Chicago.
are
studies
Business
University of
in the course
The
of
Financing
Enterprise;
of
Security
Analysis; Problems in the Financ¬
ing of Corporations; Marketing
of Securities; and Investment Pol¬
icy. Tuition is sixty dollars, and
certain text material is required.
The
four-week
offering
resident
for
course
also
is
IBA
a
summer
:
investment
banking
trainees, at Northwestern
Univer¬
sity, August 9th to September 4th.
Registration fee, covering all costs
(instruction,
materials
and
notebook)
is
$475.
Registrations
may be made until
July 15th. Additional information
may be obtained from Erwin'W.
Boehmler,' Educational directory
of the IBA, 425 Thirteenth Street,
N. W.,
Bonds.
revolution
cal
forecast
new
why shouldn't we once again be
a capital-hungry nation, just as we
were
when
we
had
new
open?
It is true that the political and
experience of the last 30
makes the, present ground
hard to understand. But, if
market
years
rules
experience from the. past is valu¬
why not go further back?
people don't yealize that
is nothing unusual historicall>Vabout short-term rates be¬
ing as high or higher than longterm rates. This was true in most
able,
Many
there
years
from the Civil War to 1929.
it
Why shouldn't
again?
be
business
from
offices
John
J.
at
42-45
Kissena Boulevard -under the firm
of John Sodano & Company.
name
Uehara Opens Office
HONOLULU,
K. Uehara is
large part of the battle for
correct management of bank bond
accounts
will
be
won
business
ties
from
a
securi¬
offices
1226-B Emma Street. He
was
at
for¬
merly with Hart Wood & Co. and
Waddell
&
Reed, Inc.
•
John L, Wray Opens
NORTON, Kans.—John L. Wray
£s engaging in a securities busi¬
ness
from
Jones.
He
offices
at
609
formerly
Goffe & Carkener, Inc.
was
when
the
portfolio manager and bis
committee change their point of
view and realize
that
ible attitudes must
be
successful
odds
in
a
more
flex¬
be adopted
against
the
to
heavy
working against the investor
bear
market;
There
is
no
The banker
given him a reputation as a poor
bond buyer. This, of course, stems
from the fact that he only has
place in bonds when
prices are high and rates are low.
When money is in demand and
rates are high, he is forced to. sell
money
his
Hawaii—Richard
conducting
once
enough problems fighting fac¬
tors
which have quite unfairly
securities
a
true
A
monetary facts of life.
—
frontiers
of land to
lias
John Sodano Opens
FLUSHING, N. Y.
engaging in
many
is
point in trying to fight the basic
Washington 4, D. C.
Sodano is
by
going, to open the
frontiers that 'they foresee,
economists
text, bond
meals,
room,
NortD
with
jn
to
bonds
at
loss
to
provide
funds for his borrowing customers.
Basic
principles
of
investing
have
been
forgotten and these
a
is of
arrangement
and ds vital to success in
markets, such as we have seen in
any other one
rapidly moving mar¬
a
ket such ab we have seen over the
much past few
action, much flexibility and
that
care,
years,
one
short
past live years. JMerely to buy
the idea of holding to ma¬
the
In
port¬
almost
than
thing.
bond
of bank
management
folios
much
bond account requires
a
.
declining. Or, perhaps it is
because very few bankers and in-
Basil
as
stems
American
businessman and bankers to build
to be accustomed to seeing
Dimes, it was
nor,
long-term bear market
from the natural
a
bonds
desire
k
o r
March
in
were
in
tax
great benefit to banks, it has prob¬
ably led to more errors in the
Beat Bond Maiket Will Continue
partner In
a
Company^ mem¬
bers of the New York Stock Ex¬
&
Hutton
F.
E.
a
Financial Chronicle
.,
.
Thursday, July,9, 1959
(126)
26
year,
not take
turity has not been enough.. Wit¬
ness
the U. S. Treasury 3M>s of
cause
are
or,
arbitrage profits just be¬
one is in a loss year.
The
investment
between
Unlike
There,
Such as
factors
quality and produc¬
issue of Gov¬
invent
doesn't
bonds
ernment
new
one
another.
and
stock
one
stocks,
drug, nor another
af¬
be blinded by tax consid¬
a
issue pro¬
automo¬
duce an unattractive new
cannot*
manager
external
no
tivity differentials affecting Gov¬
ernment
issues,, as
is the case
losses
one's
There
management
because one is in a
that one should
simply
profit
with
cut
to measuring per¬
are
only some
comes
50-odd Government issues:
it is absurd to say
cannot
it
when
formance.
is perfectly possible for a
portfolio manager to set up
a
number of imaginary portfolios
against which to check the per¬
bile. It
bond
example. If the port¬ ford to
V:
■
or his. committee, erations, A
formance
of his account for the
cannot explain the difference be¬
Losses
tween managing and investing to
purpose of producing provocative
It is perfectly obvious that
no
their directors, then for the good
questions.
An
imaginary port¬
bank will have a loss, in its Gov-; folio
might
be invested
all in
of the shareholders and the pub¬
ernments if it buys them at par or
treasury bills, or might be one in
lic, they should not be permitted
less and holds them to maturity. ?
which
an
equal amount of the
to have a bond account with an
It is equally obvious, however, as;
portfolio comes due in each of
overage maturity of over two
one examines
the comparison be- j three or five'
years, or more. Or,
years.
Managing is harder work
for
1990,
foliomanager,
.
and it is hard to
successful bond port¬
folio manager who has not had
considerable experience investing
than
investing,
imagine
his
for
account
own
.
.
and in¬
.
vesting for his own account under
highly leveraged situation.
a
'
know
I
shock
will
it
many
bankers to think that their invest¬
cost
tween
a
a
market
and
of
value
Government,bond portfolio, that
in
many
cases
losses represent
income
which could have been
for
earned
had
ers,
the bank's sharehold¬
bond
the
better managed.
account
been
A perfect exam¬
ple of this, and one which denies
the question, "But, we had to have
the income!", is that of the U. S.
Treasury 2!2S of 1963, which ap¬
his ac¬
the manager can compare
count with the portfolio he main¬
tained
one
previous, or two
year
years
previous.
Such measure¬
ments of performance.are not for
purpose of beating the mar¬
ket,' although, of course, that is
the
very pleasant for, the sharehold¬
These measurements are made
ers.
in order to provide the investment
committee and the board of direc¬
simply
peared
so tempting in November tors with the same sort of mate¬
forget the fact that they, too, are
of 1954 when they were offered
rial
that the investment manager
borrowing the depositor's money
in exchange at a price around par,
himself would wish to have were
when they buy Governments. For
but which, if sold in the summer he
how else can a man be expected
only on the committee, or on
of 1957, would have resulted in a
the
to
handle an account as
board, and not
behind the
highly
ment
man
borrowed to make
ever
investment,
an
they
but
leveraged as most bank bond port¬
folios with shareholders'
capital
equal only to perhaps a third, or
a
quarter, of the value of the
account if
total
that
man
has not
learned, by risking his own funds
on margin, the nec¬
in the market
sensitiveness to be able to
get out at the right time and cut
essary
his
as
was
the U.
needed last June after
S. Treasury
viously doing
so
I do not mean
Government
his
for
be
2%s
ob¬
to suggest that
a
portfolio man¬
bonds
trading in
account
own
were
poorly.
bond
should
ager
Such flexibility
short?
losses
this
at
the
same
time he is trading the same issues
in
bank's
portfolio or anyone
portfolio. This he must not
do, since he must never place him¬
self in a position where his own
emotions
m i g h t
influence his
a
else's
judgment with regard to
funds
ent's
or
Secondary
At the
his cli¬
in
loss
Reserve
Account
beginning of the postwar
period, the bond account was an
account, providing
needed income and, indeed, ac¬
investment
counting lor a major portion Of
the income of most banks. During
Too many
last
bond
what
few
account
it
once
years,
has
however, the
become again
a
was,
true
reserve
income
of the
the
nearly
re¬
out their losses, and thus
become lemon collectors.
at the horrible example of
wipe
Look
when such a market came
indeed, wipe out many
1958,
and
did,
losses
their
extended
banks
the
accounts.
bond
in
Many
accounts
in
hope of capturing even more
profits, or because of a lack of
knowledge of the money market.
And, then because* they were in
a
profit year, most banks were
unwilling to sell and shorten up
when it became obvious through
August that we were returning to
a bear market in bonds.
And, thus
1959
in
most
banks
find
them¬
selves
again in the same position
in in 1957, a position
which
they
swore
they would
never let happen again.
There is no point blaming the
were
losses
in
a
Government
bond
only
is
on
sary
on
correct plact for the blame
the men who lack the neces¬
acquaintanceship
with
the
monetary forces which character¬
the
ize
climate
in
which
losses
are apt to occur and whojack ap¬
At^the present time, in
preciation of *the opportunities,
a
very strong proba¬
and also the great dangers, which
bility of increased demands for
exist in leveraged bond accounts.
loans once again, it would seem
definitely appropriate for bank
Make 1959 and 1960 -Loss Years
portfolio managers, their invest¬
In 1959, and probably in 1960,
ment committees, and boards of
most banks will be able to report
directors, to re-examine their in¬
excellent operating earnings. 1959
vestment policies in the light of
will be a loss year for most banks,
the
decreased
liquidity of their
and it may well be the course of
banks, and of the whole banking
common
sense
for them to make
system.. Particularly, since it prob¬
1960 a loss year as well, so that
ably will not be necessary to give
during this two-year period of
up
much
income, they
should
make whatever sacrifices are nec¬ good operating earnings, they can
clean out the losses in their bond
essary to be. sure that they have
provided the requisite strength in portfolios and reconstruct those
their bond accounts, as we move portfolios to serve more accurately
and prudently the reserve and in¬
further toward a condition of les¬
come needs of 1959, and not those
sening liquidity in the banking
of 1946. Such adjustments as these
system.
should be made now, so that the
Tax Laws
banks
will not be
caught in' a
account.
the
face
of
,
The tax
the
laws take
that
the
into
banker
account
of
necessity, have to sell his Gov¬
ernment
bonds
involuntarily,, to
return deposits to his customers
of they are demanded.
For this
reason,
bankers are allowed to
charge off losses in their bond ac¬
counts against
ordinary income,
fact
may,
should be used to
the
highly depressed mood at the lows
of the bond market at the ,very
time when bond maturities should
performing well, or
account is not
provide an explanation of why,
in periods of seemingly poor per¬
formance, the account has been
set up in such a way as it has.
The men who will do the best
to
bear market will be
job in this
the Best knowledge of
those with
And, these
have to be
in New York, or in the bigger
cities.
They
can
be anywhere
from
Columbus, Indiana to San
Diego, Calif. Remember for ex¬
ample, the advantages of the
smaller bank in the present thin
Government bond market, where
banking.
and
money
do not necessarily
men
the flexible manager can
take ad¬
stemming
from the huge transactions of thebigger and more inflexible insti¬
tutions, who face great difficulties
in moving large amounts of their
arbitrages,
of
vantage
Government bopds.
ac¬
the Government, or on
the Federal Reserve System. The
count
studies
Such
provoke questions as to why
bankers keep hoping,
subconsciously, for a
bull market in bonds which will
they
investment desk.
3-year
if only
even
„
the
during
period.
they
needs.
excess
ceived
Shareholder
Reporting
performance should
also
be expressed in reports to
shareholders. It is impossible for
Measures of
analyst of bank stocks to as¬
the
properly the performance
sess
of
bank, unless he has suitable de¬
tails of
the current situation in
a
bond
the
account, and
of the ac¬
the
tion that has been taken over
past
few
formance
figures
per¬
from
year-end average ma¬
yield, but it
and
turity
more
years. An idea of
can
be gathered
on
is much
effective to place the
whole
story in the report. After all, the
shareholders have put up a portion
of
the
bonds,
have
capital used to buy the
and should be entitled to
some
idea
of how
manage¬
performing with its mar¬
gin account. Indeed, many banks
ment
is
may
have to ask for new
over
the
of
rising
wise
capital
next few years in view
loan
bank
will
and the
its bond
that it can
accounts,
prepare
account in such a way
adequately answer shareholders'
questions at that time, and not be
in
the
embarrassing position of
asking for capital in
not dissimilar in size
in the bond
an
to
amount
the
loss
portfolio.
lengthened.
Human psychol¬
The Market
in individuals, or committees,
The long-term bear market in
a powerful force.
It
lessons need to be relearned from
is always tragic to see some group bonds may end tomorrow. It can
the experience of the last several
wait so long to take action that end at any time that the public
years.
suddenly decides to consume less
no one will buy anything but 90to the extent that such losses ex¬
d.ay Treasury bills when the time and save more. But, at the mo¬
Investment and Investment
comes
for
ceed
prudent extension of ment, no matter how hard one
capital gains.
Long - term
Management
capital gains are taxed to the ex¬ maturities, based on facts rather delves for indications that the
One must make
long-term trend may reverse it¬
a
distinction tent that^'ijfrey exceed losses, as than opinion.
between investing and investment for other co.rpokations, at the capi¬
self, the burden of proof is still
Measuring
Performance
on the bulls.
Bond market cycles
management. To the investment tal gains rate. This is why bank¬
are
The Government bond portfolio
usually of substantial dura¬
manager,
the best defense is a ers like to take capital gains and
tion.
After
the
Civil War there
good offense, and a good offense capital losses in separate years. manager is in an enviable position
be
ogy
or
boards, is
Volume
190
5862
Number
.
.
.
The Commercial and Financial Chronicle
(127)
was
bull
a
market
33 years, or so, then
for 20 years, from
and
then
bonds
1900
to
1920
to
1920,
would
a
young¬
seem
early to change
the trend,
particularly in the light
of new developments over the
past
few years.
Our tax laws, for ex¬
ample, heavily favor debt financ¬
ing,
and
even
though there is
nothing high about current inter¬
est
rates
historically,
the
takes
tax
laws
interest rates
when
into
still
are
one
account,
remarkably
•low the the large borrower.
hard
Taft
ates TV and AM-FM
Broadcasting
Common Stock
It is
Offered to Investors
Harriman
a
bonds-again, until
privately held money supply
begins to expand, or debt de;eline, in relation to gross national
product.
' : '
1
One thing is certain; were we
,to go "back to a pegged bond mar¬
ket
for
political
wards for
483,322
stock
the
price
group
of Taft
of $15
Broadcasting Co. at
share.
is
the
stock
of
and
owns
broadcast
tions
common
a
per
This
of
of
first public offering
the company, which
operates
television
.stations, AM radio sta¬
and
FM
radio
stations
in
both
Columbus, Ohio and
station
in
Lexington,
Broadcasting
terest: in
a
also holds
company
a
30% in¬
which oper¬
company and its
been
,in
the
dividend will be paid on
of
record
Feb.
on
15,
1960.
since
1939.
proceeds
from
tention,
will
be
received
by
years,-
founder
Cincinnati
pf
Times
Directors
declared
of
to
net
a
dends
of
a
10c per
the
Star
the
share
and
several
divi¬
annual stock
an
divi¬
CHICAGO, III.
back
in
chins
Street,
&
1919
Co., 231
was
to
have
subsidiaries
March
$8,973,000
common
1959
pro
to
share,
$7,873,000
the
31,
earnings
per
for
and
78c
amounted
forma
$1,137,000,
and
year
net
$1,039,000,
or
of
the
development
to
nothing
compared to the impact of the
rapid expansion of bank deposits
which would take place in view
world
turns
on
..
.
the
By turning
terference, the bear market looks
strong and healthy.
Today
This
does
should
not
have
not
that
mean
further
we
E.
niversary with the firm.
rallies
natural
gas
may well prove
better inflation hedge than
that
it
is
only
temporary
a
<
J''
'
SAN
}
72c
<
r
the
'staff:-.-on: Sutro
Building, members
*
New
Stock
York
and
Exchanges,
power.
it
...
.
by pipeline.
Lifted
over
give homes and
l.ike
the
.
.
.
energy
the
never
available
before.
pipeline.
wheel, revolutionary.
petrochemicals that
mean
.
heat, power,
ever
wider service to
man
V*
Co., *460
&
Montgomery Street, members
the
of
Pacific
of
Coast
f
Form Consolidated Inv.
MERRICK, N. Y.—Consolidated
Investors Company is engaging in
securities business from offices
a
at 224 Lincoln Boulevard. I. Judah
Lefer is
principal of the firm.
a
New
Bernstein Branch
McKEESPORT,
Pa.—Bernstein
; & Co., has opened
,
at
Peoples
under
a
Union
the
branch office
Bank
direction,
Building
Louis
of
Young..
Moore, Leonard Branch
WASHINGTON,
Pa.
—
Moore,
Leonard
& Lynch has opened a
branch office in the Hotel George
Washington
_
undap. the manageb7 Parry.
ment of Herbert
With
Stifel, Nicolaus
(SpeJ il to The Financial Chronicle.)
BLOOMINGTON, 111.
J.
Childs
Stifel.
rated
is
of
merly
St.
White
&
&
Co.,
Louis.
with
—
Jordan
connected
now
Nicolaus
the
He
local
with
Incorpo¬
was
for¬
office
of
Co.
Comex Elects Three
To
V
The
Trading Privileges
Board
Commodity
announced
new
of
Governors
of
Exchange,
the
Inc., has
election of'three
members to full trading priv¬
on the exchange.
ileges
Elected
were:
Barclay McFadgeneral
partner,
Geo.
H.
McFadden
& "-Bro.,
commodity
brokers; David Rubin, commodity
den,
I
'
trader;
Romie
Shapiro,
VicePresident, Herman Hollander, Inc.,
I dealers
i
'
in
hides
and
NNESSEE
LEADING
GAS
PROVIDER
OF
TRANSMISSION
ENERGY—NATURAL
skins.
OIL
COMPANY
AND THEIR
PRODUCTS
rousto-n,
,
Commodity
the
GAS,
texas
Exchange, Inc. is
marketplace for futures trad-
Xing in copper, lead,
tin, zinc, hides,
and burlap.
Digitizedrubber
for FRASER
DIVISIONS: Tennessee Gcs Pipeline
SUBSIDIARIES:
Company
*
Tennessee Gas and Oil Company
Midwcsterp Gas Transmission Company
•
'
Bay Petroleum Company
Tennessee Life Insurance; Company
•
Christopher
Co., Board ofi
Trade
highway,
under rivers to
From natural gas and oil
,,
FRANCISCO, ^jCalid^-
Wayne P. Davis has been added to
<
produce
more
,
KANSAS CITY, Mo.—Cornelius
Co.wp.^
to;T#f
.
But
bull-market.-^''
Sutro &
■\•
far
registered
G. Ryle has become affiliated
with
B. C.
Christopher &
r
heat and
Simple idea
ket in bonds and to stop pretend¬
ing
made tt
and
\
industry
stocks, but the time has come to
recognize that this is a bear mar¬
decline hi a
.
is carried thousands of miles.
mountains, forced
1960*s/- bonds
a
.
Through this great underground
against 'the trend, and it does not
that anyone Should be sur¬
prised if, for a certain portion of
to be
man
a
1938.
(Special to The Financial Chronicle)
we
mean
the
it with water,
since
With B. C.
idea
,
harness energy.
founded,
New York Stock
wheel.
boy
Sails
to
vear.
an
La
af*«
of the
present state of public sen¬
timent.. Assuming no political in¬
South
Fred
amount
Simple idea
An office
Mitchell Hut-
Lange is celebrating his 40th
com¬
losso in the
a
■
with
equal
compared
share, in the preceding fiscal
per
—
when
Mr. Lange has been
ended
dividend
the
on
with
»
cash
Lange 40 Years
With Mitchell Hutchins
representative
former
company
next
supplement
Fred
Net revenue of Radio Cincinnati
Company.
quarterly
the
over
to
dend.
standing shares. The majority of
the selling stockholders are mem¬
bers of the Taft and Ingalls fam¬
ilies, all of whom are descendants
of, or related to, the late Charles
Taft,
1959
the
of selling stockholders, who,
following the sale, will continue
own 66%% of the
1,449,972 out¬
P.
1,
Directors have expressed their in¬
of
sale
held
to
Taft
Ky.
a
TV
had
Sept.
1, 1960 in the ratio of one
by Radio.
its subsidi¬ additional share for each 40 shares
broadcasting business
All
A stock
operated
latter
payable
the re¬
long position
a
pared to the risk
absence
of
such
would
The
predecessor
shares
stock,
reasons,
having
in bonds would be minimum
and
business
Ripley & Co., Inc.
heads
an
underwriting
group
which on July 8 offered
publicly
tion in
have
can
March
Cincinnati, Inc. and
bull market in.
we
the
aries.
the
how
see
stockholders of record, August 15.
j: Taft
Cincinnati, Ohio and Birm¬
ingham; Ala.; a TV and AM sta¬
to
broadcasting
in Knoxville, Tenn.
Broadcasting was formed
last month to acquire
by merger
facilities
1946, leaving
the present bear market
ster of only 13 years.
It
for
bear market
bull market for the 26
a
from
years
in
a
2*
AFFILIATE: Fctro-Tex Chemical Corp.
of
Exchange.
tha
The Commercial and Financial Chronicle
23
.
Thursday, July 9, 1959
.
.
(123)
Continued from first page
yet. The trond, however, is some¬
what disturbing at first glance.
'
Last
of 19S9
The Gold Rush
ing a "son" currency?
Or is it
Duly a temporary phenomenon
which will soon dry up and lose
back to the folks "in
country". :
money
old
a.
customary
generally acceptable means of
Fettling up international indebted¬
ness. Thus, if France sells us more
rnd
goods and services- than she buys
shall have to pay the
French
the
difference.
If
the
French Embassy in
Washington
from us, wo
spends more than the American
embassy
spends
in
Paris, the
French,
will
end
up
owing us
IT Americans are investing
more heavily in French companies
than French investors are putting
money.
companies, we will
to transfer
into American
Also
have
to
manage
Yhat difference to France.
settling these differ¬
ences. is "by sending gold from the
debtor
country to the creditor
country. This is just the same as
One way of
differences
of
settlement
the
Americans by payments in
among
in
dolars:
both
something
cases
generally accepted as a means of
fmyment is used tip even up the
credits.
debits and
Therefore,
we
losing gold to
are
foreign countries because
them money, or, to put it
ments to them
a
little
ou repay¬
precisely, because
more
we owe
outrunning
are
our
receipts of payments from them.
This
be
seem to
may
surpris¬
a
ing state of affairs, although actu¬
ally this excess of payments on
receipts has prevailed in every
year since 1950, except for 1957!
flow
it
can
States
United
transferring more
abroad than it is receiving?
money
A
that "the
be
be
can
look
at
our
exports and im¬
ports actually shows that we
Felling more to foreigners than
are
we
are buying from them, Last year,
American exports of goods and
sales
of
services
to
foreigners
amounted
to
billion
$2.5
$23.1 Million,
about
in goods and
services than we bought abroad.
This favorable trade balance has
more
also prevailed for a
long time and,
not
in
fundamental
any
international
actions
are
not limited just to pur¬
sales
of
goacts and
and
chases
services.
and
trans¬
individuals
American
corporations are substantial
of foreign securities and
make
large direct
invest¬
buyers
also
ments abroad. If
American in¬
an
vestor
buys stock in Iioyal Dutch
Petroleum or Imperial. Chemical
Industries"
vestor,
ferred
frpin
funds
a
to
be
of
New Jersey is
build
or
the
same
In
a
going to dig a well
refinery in Venezuela,
also lends money
in large sums to
foreign countries, and also makes
grants
to
foreign
governments
under
our
aid programs.
ment
agencies,
uals
and
money
sion
as
well
companies,
as
Govern¬
individ¬
also
abroad in the form of
payments
or
just
problem is attracting in¬
creasing attention by businessmen,
government officials, and some
trade union leaders. For example,
we
now
import more of certain
iron and steel, mill products than
The
export, although we had al¬
exported more in previous
years.. The same thing has hap¬
pened with automobiles. Textiles,
chemicals, drugs, nonferrous met¬
als, and many kinds of industrial
machinery
are
all
feeling the
we
ways
deficiency
need
costs and taxes; this is one reason
actually'happened to
remit
pen¬
sending
consumer
Kingdom, Sweden, the
Ger¬
nothing to prevent Congress from
authorizing a lower Federal Re¬
serve
holding relative to its lia¬
bilities. This is, in fact, exactly
what was done during World War
represent
this
Does
from
a
"flight
the dollar"?
the
drain
gold
the safety of
,
The
soundness
dollar is
endangerlug
to
be
currency?
of
our
our
safety of the
or
threatened
not
trends.
impeded in any way.
by these
the
"U. S.
shown
size
large
of
item
the
private investments abroad"
in the table earlier.
safe
sound
and
home
at
be
will
dollar
The
willing
to
people
as
continue
accept, dollars
States
in
to
dollar as
depends
expectations
upon
in other words,
upon
The
of
our
soundness
of
$42
the general
price level and
(essentially much the same thing)
upon an abundant supply of goods
and
services which
people can
buy with dollars.
stability
However,
while
substantially
their dollar assets
cflir-
cals
made in
abroad
in
the
were
sold
quantities
last
U.
rising
S.
as they have done year, even though tjiese two in¬
since 1950. Even in dustries are especially vocal about
1957, when our receipts from them foreign competition.
(e)
America's
exports
as
a
actually exceeded our payments
to them, foreigners still increased share of total world exports have
their dollar holdings: they liqui¬ held at around 18% over the past
dated more than enougfy gold to 10 years and show no sign of de¬
clining. Clearly, our merchandise
cover their deficit with us. That is
one
reason
why they have been is. still rated high throughout the
ing the year
every
so
eager
—-
year
rebuild
to
their gold
months0.
stocks during the past 18
Obviously,
is still
prime asset through¬
the
dollar
<■
>,
Does the gold loss mean we are
3.
pricing ourselves out of world
Not
necessarily/or
world.
(i) Although
would
electrifying effect onour economy. American goods and
services
would
suddenly
seem
much cheaper to the rest of the
world, just as though we had cut
Under these circumstances, every¬
all
destroyed
wants
one
and
goods,
wants money.
one
no
The price level then
rises astronomically and one day's
it.
As
so
we
we
have tended to
*
Incidentally, a large part
of
these
.gold hoards is actually maintained five
stories underground in an old Florentine
palance—which
happens not
to
be
in
Florence at all, but on Liberty Street in
New York City's financial district. There
the Federal Reserve Bank of New York
provides safe-keeping facilities for about
$8 billion of foreign gold (including part
of the USSR's gold stock).
the
to
the
United
(g)
States.
Foreign prices
question, therefore, is
whether the outflow of gold could
threaten the fabric of our credit
The
wages,
have
a
run,
this
very
An" Englishman
gold,
which he must pay 12 pounds,
prices.
our
would find that an ounce of
for
shillings, will now bring him
10
formerly he received,
equivalent of 12
pounds, 10 shilings. Or, to put it
a
little differently, he will find
$42, whereas
only $35 for the
$35 worth of
merchandise
for
10
that he can now buy
American
two
the
Obviously, he would find
would
he
and
pounds
be
pounds, 10 shillings ahead of
game.
American
and
more
Our
goods
attractive.
would begin to
goods
exports'
expand.
would find for¬
But Americans
eign
services
expensive, and
more
imports would tend to decline.
our
English
An
costs
now
But
if
priced at £700
about $2,000.
car
just
us
devalued the dollar by
we
20%, we would have to give up
$2,400 to get the £700 we need to
buy the car.
Clearly, we would
buy fewer foreign cars and more
American
ones.
United
the
Then,
,
Gov¬
States
ernment, which owns all our gold,
would have a complete windfall.
More
than
gold
are
500
million
buried
at
devaluation,
Alter
Knox.
ounce
$7 more than
be worth
would
of
ounces
Fort
each
it
$3.5 bil¬
lion would have been created out
of thin air.
Following the usual
was
before—and
about
procedure, the government could
then deposit $315 billion in its ac¬
count
at
the
Federal
Reserve
draw checks against
finance regular ex¬
and
Banks
this deposit to
penditures
national
or
debt
to repay part of the
or to permit a tax
cut.
increase
at the
creditmonetary
Finally, because of the
in
gold certificate holdings
Federal Reserve, the entire
creating capacity of our
system would
be'significantly ex¬
panded.
All
of
this
hilarating.
would be very ex¬
We
would
be
selling
abroad, foreign competition
would cut less into some of our
more
real
domestic
markets,
credit
and
money would be easier, and our
forcing wholesale government would be flush with
liquidation of securities by banks newly-found dollars.
and by leading banks to refuse,to
But
how
long -would it last?
renew maturing loans of business
Would foreign countries sit by and
structure
firms.
by
This
crisis
of
comparable
would
the
only
dous deflation
ness
activity
create
magnitude,
indeed
first
to
the
tremen¬
in credit and busi¬
during
the
Federal
accept
trade
this deterioration
in their
the
position by a stroke of
pen? ' Would the
American price
the face or
push of freer gov¬
ernment spending apcl excessive
way credit supplies?
'
Great
Happily. we are a long
anything as drastic as that.
In the first place, our present gold
stock of about $20 billion is far
from
in excess of
and'
aid of
gold stock.
Depression.
wbrds, imports have shown
tendency to rise as a percent¬
of our total output but merely
reflect a generally expanded de¬
mand for' goods and services in
to the
system is in turn
legally by the size of our
Other
no
come
short
the
In
for¬
banking
limited
a
age
at least not
themselves
would be "devalued".
lar
much one can buy with
have already seen,
increasing amounts abroad,
we are expanding even more rap¬
idly our purchases of domestically
produced goods and services. In
buy
the dol¬
gold would be reduced;
of
when the
capacity
produce goods
and
services has
been
destroyed or
seriously disrupted and when ex¬
isting supplies of goods ore inade¬
quate to take care of the situation
until production can be resumed.
is
to
currency
there is
Western
at $35, you can buy
under three ounces of gold
for
$100; at $42, however, you
could buy less than two and a half
ounces
for $100. In other words,
the value of the dollar in terms
just
the
Europe began to
feel the effects of a recession in
(b)
ounce?.
an
With gold
country's
a
and to sell
buy all gold offered
to foreign countries at a
fixed price of $35 an ounce. What
would happen if the Treasury in¬
creased that price by, say, 20% to
to what the dollar will buy<—
as
Government
gold
This aceeptibility of the
a
means
of
payment
fundamentally
present time, the United
stands ready
At the
to
and services.
goods
for
payment
long
as
price of gold?
the
considered
be
abroad
and
happen if we raised
5. What would
.
eigners still want to buy more
The answer to this question is business
activity during the latter from us than we buy from them,
uncquivccably no.
If 1'oreignei'S* half of 1958, and is only now be¬ and
they arc also content to add
questioned the soundness of our. ginning to pull out. As a result, to their holdings of dollar assets
currency
or
if they anticipated our exports of raw cotton, wheat,
year after year.
sharply reducing their future pur¬ coal, copper, and steely scrap fell
Furthermore, the effect of for¬
chases
of
American goods and off sharply, but they should now
eign competition is likely to be
services,r the figures just shown begin to revive to earlier levels.
healthful. The expanding inflow
would have looked very different
(c) The combination of Euro¬ of lower-priced foreign goods is
indeed.
pean
and ^American
recession a
deflationary
influence
which,
If a flight from the dollar were caused a very sharp drop in the
will tend to keep our price level
under way, foreigners would have prices which the Underdeveloped ironj.
rising. Clearly, a stable price
converted all their net receipts of countries received on their raw level is a
primary condition for
dollars in 1958 into gold and, in material
exports.
Lacking ade¬ a sound and acceptable currency.
addition, they would have drawn quate foreign exchange reserves
There is one serious problem.
down previous accumulations of and immediately affected by low¬
The capacity of our commercial
dollars and converted them into er earnings on their exports, these
banking system to make loans to
gold also. In other words, foreign¬ countries had to reduce their pur¬
business and to purchase govern¬
ers at the end of 1958 would have
chases
from us correspondingly.
ment securities is reduced when
situation
been holding less in dollar check¬ This
is
also
turning
foreigners draw down their bank
ing accounts and dollar securities, around now.
accounts to buy gold. While this
with the entire increase going into
(d) As a matter, of fact, our
trend can be offset by.action on
gold.
shipments of finished manufac¬
the part of the Federal Reserve
tures
have
held
up
very
well
in¬
But
we
have seen
that they
Banks to replenish the reserves of
For
example,
electrical
actually converted into" gold only deed.
the commercial banks, the capac¬
a
part of last year's net gain in machinery and undustrial chemi¬ ity of the Federal Reserve Banks
dollars. In fact, they
when the government wanted
certain that the financing
war effort
would not be
II,
Is
4.
$12 billion, there is
down close to
was
widened.
markets?
government
our
because
postwar years.
2.
thing will be true.
addition,
1957.
a year of decreased in¬
production in the United
States, and imports usually ctecline under such conditions. And
so far in
1959, our excess of ex¬
ports
over
imports
has
not
1958
trans¬
Oil
in
dustrial
in¬ "considered a
out the world.
European
have
abroad. If Standard
up
Kingdom.
period, the increase
prices was greater in
localized prices have no real meaning for
the next. Then one can say that
impact ol' foreign competition may
the soundness of th* currency has
be painful—and even evoke some'
been destroyed — as in our own
fairly audible outcries, the prob¬
South after the Civil War, France
lem is easily exaggerated. Seen in
after
the
Revolution,
Germany
broader perspective, the situation
payments
to
them)
in those is not nearly so serious as it ap¬ after World War I, and Greece
and Hungary after World War II.
checking accounts exceeded with¬ pears superficially:
Barring a nuclear war, nothing
drawals
(i.e. their payments to
(a) The comparison of 1958 with even vaguely resembling this is
us).
Then
foreigners used $2.3 1957 is not
altogether fair, as our
likely to occur in the United
billion of the $3.8 net inflow of
exports in 1957 were swollen by States. Our
capacity to produce
funds from us to purchase gold
shipments of oil to Western Eu¬
goods and services is enormous
from the United States Treasury.
rope while the Suez Canal was out
and
growing every year. Even
The'rest of their additional dollars
of
operation. Our trade surplus after the very substantial rise in
was
either left in checking ac¬
in 1957 was therefore abnormally
our
price level over the past 13
counts or invested in short-term
large; our export surplus in 1958
American securities to earn
in¬
years, the dollar is still treasured
compares
favorably, with other
throughout
the
world
because
terest on their mone$.
in
However,
our
which we p(iid over to
foreign countries in excess of our
receipts' from them? Nothing at all
mysterious. As a result of this
"deficit", the checking accounts of
foreigners in American banks in¬
creased.
New deposits
(i.e. our
ten
years.
rang
all the more remarkable,
the money
increased
a
we
United
the
same
Netherlands, Austria, West
many, Japan, and Belgium.
Our
by more
$3 billion from 1957, while
imports were steady. This was
for
Now what
in
than
for dollars.
matter of fact, was higher in.
1958 than in four out of the last
as
but
pinch of foreign competition. A
growing list of American compan¬
ies are building plants abroad to
take
advantage of
lower labor
world demand for or
the
for the years since 1950
much smaller
than the $0
the
the United
exports in 1958 dropped
importance?
other because gold is
export surplus
billion — about
our
$2.5
average
the biflion
Foreigners make similar types
of payments to us. They are very
What should we
however,
and
virtually
do
about it?
Should we start small,
thinking about going back to high negligible next to the very large
capital
transfers
made
by the
iariifs? Would curtailing our for¬
United States.
eign aid .program stem the tide?
Thus, on balance last year, we
These questions are beginning 1o
made
the
following
non-trade
agitate bankers and Congressmen,
financial editors and economists. payments to foreigners!
Billion
Once again, a debate is springing
Remittances and pensions...
$0.8
up over terms we have not thought Government
non-military gy^nts.
aA
0boqt for many years—terms like U. 3. private and governwlCnt
investments
abroad .Ff—
3.1
"flight from the dollar" or "pricing
Ourselves out of world markets."
Total
non-trade pi/mcnts
$0.3
And, as usual, the non-banker,
If these
payments of $6.3 billion
iion-econoiTiis't layman finds him¬
are
compared with our net re¬
self baffled by the debate. What
ceipts of $2.5 billion from our ex¬
is going on
here? he wants to
port surplus, then it is clear that
Jinow. What is the debate about?
our
total payments to foreigners
"This article ris an.-attempt to an¬
exceeded our receipts from them
swer the questions he has in mind.
by $3.8 billion. The transfer of
funds in the form of foreign aid
t. Why are we losing gold to for¬
and
increased American invest¬
eign countries?
ments abroad caused the "deiicit'
One country loses gold to an¬
in our international transactions,
its
year,
about
was
and
lands,
In
level remain steady in
the inflationary
probabilities are that the
advantages of the de-j
valuation would have exhausted
the currently required
themselves before too long:
{
Reserve
holding
of
The
short-run
less
foreign countries
probably also devalue by
ing faster. From 1953 to 1957, the dentally, much greater than sim¬ about the same amount, restoring*
the
rise in our hourly wage rates was
ilar
safety
margins' in
other exchange ' relationships.^ to
status quo ante. Our English frienc
exceeded in Canada, Italy, West countries active in world trade.
would once again have to give u\
Second, if the gold stock did get
Germany,
France,
the
Nether¬
although still considerably lower
than ours, have actually been ris¬
$12 billion. This very sub¬
stantial cushion of safety is, inci¬
than
(a)
Most
would
#
Number 5862
190
Volume
.
.
.
The Commercial and Financial Chronicle
23
(129)
'
.'
12
pounds, 10 shillings to buy $35
worth
American
of
exports
our
so
merchandise,
would
decline
The
£-700
English
car
drop in price from $2,400
$2,000, so our imports would
again.
would
to
pick up again.
~
(b) At the same time, the im¬
pact of inflationary forces (and
the higher cost of our raw mate¬
rial imports) would probably lead
to a rise in the American price
level.
a
on
camera,
film; if
mobile
then
•;
V
we
we
for
afford
the
help
effects
panies
i
buy
better
V
•
•
.
we
and
who
I*
strength
;_
should we
r!n
the
to
sponse
of
lure
higher
a
selling price for gold.
If the world had
to
mine
than
do
nothing better
gold, then de¬
valuation would be
priate policy to
dollar
remains
the
the
of
fundamental
dollar,
.
II
O
|
1
aie
^"l "MOdCII Willi
"■
1A|!|aLah
I uliHdg[G
currency
WEST
llGSlCly.lllva
rv
PALM
BEACH, Florida
4
;n
mental
facts.
If
forget these
we
facts and through fear, take hasty
action to
curtail
our
payments to
Wnshinu-
+on
r>
r,
'
b
A
vjce
't'
H
president
dollars
into gold
fog1Ve^ Bu^~
people are ill-fed, illand other foreign currencies.
*
clothed, and ill-housed, and when
j'
mnkinu
more millions live on the
Reduce our foreign the announceaid program? The answer to this
edge of subsistence, the diversion
is definitely no. The poorer eounof economic activity to the mining
wiP-hor Prp«tries in the world, particularly in
of gold would be foolishly waste¬
iH(1 f
i T
the East and in Latin
America, do m fi Wilchei~
ful.
6.
these
Have
trends
favor¬
any
Curiously, yes. Even if the loss
of'gold "should carry on somewhat
dollar earnings
current
much
able implications for us?
and
to buy as
they would like
Therefore, if we cut
from
us
need.
..
further, the United States would
be helped in a number of ways.
In the first, place, the increase
in the gold holdings of our friends
abroad
has
rencies.
with
done
great
a
confidence
restore
in
deal to
their cur¬
People who do business
Western
European
most
countriei
be
now
can
receiving payments in gold
or
therefore may be
lars—and
of
sure
dol¬
will¬
ing to hold foreign currencies in¬
stead of rushing to convert them
foreign
Second,
on
to
countries
will
now
be much better able to main¬
tain
their purchases
of American
goods and services or their pay¬
on their debts to us.
In the
ments
past, they used to say that, "When
sneezed, the rest of the
America
dollar
our
grants
and
them, they will immediately reduce their purchases from
In
us.
other
words,
the advant-
age to our balance of payments
in
cutting our payments to foreigners
would be simultaneously offset by a drop in our
receipts from
them.
We would have
There
is
whether
Europe
Last
foreign
still
aid
makes
all
year,
no
net
question
some
the
to
as
to
lost
recipients of Maraid, and, for the first
exceeded
sales
our
goods and services to them.
suggests that
of
we
foreign aid to dollar-proof
countries and, in fact, that Westour
of
1958 at
about
of course, giving no ef¬
securities profits or
any
losses, which are non-recurrent.
Contributing to this better show¬
ing are the higher interest rates
that have ruled (indications lately
increase
the
been
prime
loaning
crease
in
in
the
the
rate
discount
four
five
or
that have
New
York
published condi¬
thus
statements
have
far
loan volume between 40%
50%
total
of
assets.
These
C.
H.
John
Russell
+.
D,
_
,
caTL^ eS10 Jk and ahnember
2, 1 ® Y
aJ^d 'the DAV, and
;a
National Commander of the
Army and Navy Union, U. S. A.
,
.f.i
n
isner
Opens
that
is
rate
prime
al¬
4 xk %,
other
borrowers
than
offices
at
317
L. L.
Kjeldffard Opens
tiATT vwonn
w
^
!• i?
Eeih L. Kjeldgard
a, 'Yn YY atCS4l!")US1
T
P
T
trio
Engaging in
is
offices
ern Europe is now in a
position to a
Northwest 2«nd Court,
caught pneumonia."
Now
share more fully with us the burthat
r?
^.|
*
^
foreigners'
gold
reserves
den of building up the
struggling
rorm Ull Investors CO.
have increased, a decline in our
economies of the underdeveloped
BEVERLY
HILLS, Calif.—The
expenditures abroad will not so
nations.
Parenthetically,
it
is Oil Investors Company has been
drastically or immediately result
worth noting that our European formed with
offices at 232 North
in a decline in the payments for¬
the
live years' maturity bearing?
rate
of more
than
over
interest
an
4J/4 %.
yields
the
Yet present markets give
high as 4.4%. Who, in
as
circumstance,
issue
he
market
the
will pay an
yield only 41/4%
into the open
buy a like bond at
price
when
to
can
and
go
higher return?
how
of
much
the
One
wonders
the
of
personal funds
money
advocates is
soft
being placed at the 4%% figure
when the 4.4% is as easily avail¬
able
to
them.
The
alternative
seems to be, among the soft mon¬
fraternity, some method o£
adding to the inflationary trend.
ey
One such would have
issues
new
Treasury bonds bought
the
Federal
reserve
very
will
loans
more
under
come
of
serve
In
a
word—don't get bearish on
shares yet.
bank
requirement of the central
city banks and the reserve
Now, with
but wonder
cannot
at
the
members
of
substantial
a
meas¬
of reserves of the
large^New
ure
arid
released,
Chicago banks to be
these banks will have
funds to work with.
passed
gross with
both
houses
The bill
Con-
of
only several minor dif¬
ferences to be resolved.
world
One
the amount
city banks has been V-> % of de¬
posit volume, there being several
hundred reserve city banks.
has
highs.
new
of determining
of deposit reserves required to be
sterilized from time to time. Late¬
ly the difference between the re¬
more
hitting
the
poses
sustained with the
omy
by
Reserve.
"Central Reserve Citycategory. The large banks
in
both
cities, have right along
been designated as such for
pur¬
York
general econ¬
up
Banks"
the higher fates as old borrowings
run
off.
Also, volume should be
Fla.—
'
increased
it is not possible for
Treasury to issue a bond oJ0
it is probable that the loan
business of the banks will, make
So
and
from
Greater business activity
At present
out
from
ties
University Drive.
celerate.
historically
leads
to
business borrowing."
scaled, upward
figure, so that
average rates at this juncture are
probably well- above the prime
figure. Quite a volume of con¬
sumer loans, for example, is done
by the banks with widespread
branch
systems,
at
rates
well
above the prime.
names are
the prime
pnme
HILL, N. C.—Jesse, C.
Fisher, Jr. is conducting a securibusiness
"A higher prime rate
possibility if, as I expect,
business activity continues to ac¬
A move that may well be
quite
helpful to the New York and the
Chicago, banks is to take them
the
to
substantial contribution to
the total earnings figures as we
go along, for as time passes, more
West
a
it ris5* well to-' remember
though
a
CHAPEL
follows:
is
of
rates
n
Bank Stocks
as
coupled with going loan
rates give us the makings of bet¬
ter earnings from operations. And
ratios
n
of
all
to
and
WnShindJ
*^as"ln§ton, D. C., metiopolitan
ar*?;
Russell retired from Gov^nipent service on June 30, 1959.
¥e ls Past Post commander of the
This
should shift
fect
tion
K«
*
period
1,8%, this,
shown
Tu
*
New
indication that second
an
like
the
The
Mr'
j
,7
the
on
quarter 1959 earnings from opera¬
tions would be entirely satisfac¬
tory. This department's estimate
puts the average increase over
banks
u'
would
°
sense.
we
time, our payments to Western
European countries for goods and
services
Tnp
Russell
Western
much
gold
gain.
went to former
shall Plan
dollars.
into
back
loans
us
interest
loaned.
many
not have enough dollar assets and
of
City banks could well start
and the in¬
rate) and
the fact that the banks are fully
But when
long plunge from
Notes
York
have
most appro¬
a
pursue.
millions ot
NOTEBOOK
•
off with
Daiccall Will*
—
FROM THE ANALYSTS'
'
Ttohw «I*eI!Uiair g00arf — H* C. John Russdll, fonner
prized, our imports press Officer for the Department
vHoUv n-0ima
A 4These 0f Health, Education, and Welfare,
vitally important and
iunda-
oil
By ARTHUR B. WALLACE
This Week
shall
we
common sense and truth.
much in demand throughout
very
our
aware-
a battle which
be readily mastered through
can
hard
a
of
some
increased
our
iose through panic
""
.
would tend to seem more thing to do is to keep our heads.
expensive
and
foreign
goods There has been no indication of
would tend to become attractive any flight from the dollar. Excluding our capital transactions, the'
again.
'
Ji
short, there would be no last¬
ing advantage to anyone—except
to one very small group: the gold
miners.
In fact, labor and re¬
sources would probably mOve into
the gold mining industry in re¬
dramatize
Bank and Insurance Stocks
Will be all to the good.But'
if it is used to spread fear or to
goods
In
to
deprecate
he,first and;, most important
.
,
from
'
even if foreign coun¬
not devalue, American
;
ness
cannot
.
•.
we
problems,
foreign competition.
wtuoi
.••••
,
,
matter
served
offset the painful
American com-
workers
.
being in serious
should recognize that
will not right itself
without any action on our part,
In short, if the loss of gold has
im-
our
-
trouble,
the
can
dishwasher
of
\
•
...
distance
"auto-
an
By this process,
benefits
to
1
.
those
on
meet the
•
spend more
can
can
a
indirect
ports
V
less, perhaps
television set.
or
Thus,
did
tries
of
•
,
Joins Field & Co.
,
eigners make to us, as they could
finance these payments by draw¬
their comfortable and sub¬
stantial accumulations of gold and
ing
on
dollar balances.
In
what has happened is
more than a redistribu¬
fact,
nothing
tion
centration
still
the free world's
gold
half
vitality
abroad,
and
stored,
to
see
to
will
continue
receive
from
us
such
a
ment
on
any
case
payments
as
long as we maintain
large military establishtheir territories.
Should
tail
in
substantial
then attempt to cur-
we
imports
our
through tariffs,
quotas, etc.?
Again, the answer
would seem to be pretty strongly
negative.
Action of this sort is
result of almost certain to result in retaliaion
gold sent
by the countries we sell to,
But now just as vve should expect if we
as a
of
political
have subsided and stabil¬
war
natural
con¬
depression and
of the
cataclysms
ity
gold
during the 1930's.
the economic
and
here
that
the
about
hold
flood
veritable
the
world's
the
of
We
stock.
excessive
America's
of
friends
devalue
tomers
and
the
are
dollar.
If
our
cus-
going to impose tariffs
quotas against
our
this reflected
in
a
Bell,
Burt
Kleiner, Eugene M.
Miller,
general
partners,
and
Gerald
Cantor, limited partner.
AH are officers of Cantor,
geralcl & Co., Inc.
Fitz-
■
,
M. Ploshnick Opens
CLIFTON, N. J—Morton Ploshnick
Js
conducting a
business
lrpm offices
Pershing Road under
securities
at 291-B
the
firm
planned Estates & In'vest-
name 0j-
ments
goods, we
been re¬ will gain nothing in cutting down
perfectly our purchases from them.
have
it
is
Canon Drive to engage in a securities business. Partners are Lionell
'
,
n
..
«
.
...
~
Retirement Lquities Opens
The opposite
policy, as a matter
INGLE WOOD, Calif. — Richard
restoration of financial soundness of fact, is
probably the one that J. Watkins is engaging in a seeuramong our foreign friends.
vve
should push most strongly, ities business from offices at 4843
But
in
a
very
fundamental Many countries still discriminate West 111th Street under the firm
name of Retirement Equities,
sense, the United States is richer against American goods and servthan it was.
We are enjoying the ices through tariffs, exchange re¬
reverse of the Midas legend. Gold
strictions,
and
import
quotas.
Joins Burton J. Vincent
has gone from Fort Knox (where These are vestiges of the early
(Special to The Financial Chronicle)
none
of us can enjoy its phy¬ postwar
days when
the
dollar
CHICAGO,
111. — Joseph
E.
sical beauty) into the hoards of shortage was desperately serious,
attitude
those
of
Congress who oppose increasing
the rate of interest on the longerissues
term
do
of governments.
Why
they fight higher interest rates
we are in a period of tight
delicious
wines,
and
inexpensive
but
such
obstacles
anachronisms
today.
our
We
'Admittedly,
American
some
to
should
to
strictions ■and
are
instances
therefore do
foreign
remove
to
trade
many
best to persuade
ernments
cameras.
in
these
encourage
Blitstein
is
now
affiliated
Eurton J. Vincent &
South La Salle Street,
with
Co.,
money
With
Historically
experienced high rates
have
numerous
are
hurt
and
°f
some
Amencan
Soods
pur^
Reginald
H.
Worthington
.
to
have against inflation and the need for
therefore flexibility and efficiency in busi-
iviary l^ei v eccnio
buy more than he could
otherwise,
bought
other
businesses
ployees
will
Thus;.if
we
and
and
debt due within
a
year or
about, when the major portion of
it ought to be funded.
And
if
what
.
interest rates
OrrHbis
behave?
fuse
to
the
President
New
of
largest bank
was
NATIONAL
AND
their
can
em¬
ness
are
the
areas
where this issue
Miss
ner
Mary
Del
Vecchio,
part-
in Peter P. McDermott & Co.,
With Dean Witter
PORTLAND, Ore.
Milken
&
is
Robery G.
Dean
Witter
Co., Equitable Building.
Semple, Jacobs Adds
(Special to The Financial Chronicle)
ST.
has
LOUIS, lVIe.—Dale J. Meyer
joined
the
staff
of
Semple,
Jacobs & Co., Inc., 711 St. Charles
Street, members of the New York
and Midwest Stock Exchanges.
Now With Weber, Mitchell
(Special to The Financial Chronicle)
ST.
re¬
score,
bin
LOUIS, Mo.—Frank O, Wid-
is
now
with
York's
recently quoted
&
GRINDLAYS
Weber, Mitchell
Olson, Inc., 411 North Seventh
Street.
BANK
—
with
now
there¬
Aim,
He
Kane,
was
formerly
Rogers
&
with
Co.
Chicago.
LIMITED
Alma/gainatirif! National Bank of India Ltd.
and Grimllays Bank Ltd.
Head Office:
BISHOPSGATE, LONDON, E.CJ
54 PARLIAMENT
13
ST. JAMES'S
Trustee Depts.:
STREET, S.W.I
SQUARE, S.W.I
Nairobi;
Irving Trust
Company
of New York
13 St. James's Sq.; GotI.
64 Parliament
St.; Travel Dept.: 13 St. James's Sq.; In¬
come
Tax Depts.: 54 Parliament
St. &
13 St. James's Sq.
Bd.,
Ins.
Dept.:
Bankers to the Government in: ADEN, KENTA,
UGANDA, ZANZIBAR A SOMALILAND
PROTECTCWASt
Branches in;
Al- New York City, passed away July
accordingly. will ultimately be decided.
save on the cost though we are still a comfortable 1st following a brief illness.
benefit
Co., Inc., Cascade Build¬
(Special to The Financial Chronicle)
The Federal
occasions.
is
in
London Branches ;,,
has
aiKl»beenfcadded t0 ,he sta£fboI Spen.
American workers lose their jobs^
cer Trask & Co., 25 Broad Street,
And obviously we must be sure
if we buy our cars, clothes, drugs,
New York City, members of the
food, and cameras for less money that our merchandise continues to New York Stock Exchange,
attractive
in
terms
of
both
p
abroad.
But at the same time, be
and
the American consumer can afford price
quality.
The
battle
Marv Del Verrhm
businesses
O re. —-Doris
affiliated with
now
ing.
on
competition
with general business so far as
money
rates, are c o n c e r n e d,
Whether the "liberals" recognize
the fact or not; and when they
refuse to be; realistic and insist
on
keeping money cheap, they
merely make it more difficult for
the Treasury to finance the debt.
There is today an altogether too
great a proportion of the Federal
26
'
is
Field &
we
Government
105
Spencer Trask
PORTLAND,
Spencer
and heavy demand for loan
accommodation?
govre-
Special to The Financial Chronicle)
when
,
foreign countries —-but in ex¬
change we have more^utomobiles,
finer
clothes, cheaper vitamins,
•
TANGANYIKA, ZANZIBAR, UGANDA,
ADEN, SOMALILAND PROTECTORATE,
Laibd, Bissell & Meeds
Members New
Fork stock Exchange
Members American
Stock Exchange
120 BROADWAY, NEW YORK 6, N T.
INDIA, PAKISTAN, CF.YLON, BURMA, KENYA,
NORTHFRN AND SOUTHERN RHODESIA.
Bulletin Available
,
Telephone: BArclay 7-3500
Bell Teletype NY.
1-1248-49
Specialists in Bank Stocks
of
Chronicle
The Commercial tnid Financial
30
.
The Mutual Fii in Is
Westheimer
Two With
Chronicle)
(Special to Tut Financial
,
—Allen A.
CINCINNATI, Ohio
William B. McKaig are
■with Westheimer and Company,
322-326 Walnut Street, members
.
Thursday, July 9, 1909
the
and Cincinnati
New York
Problems Create
Mr. Brown was
Stock Exchanges.
{formerly with Bachc &
A
By ROBERT R.
During much of the spring
Go.
markets.
1959
s
WRITE FOR
difficult
national securities &
research corporation
Ettobliihed '930
N. Y.
EITHER PROSPECTUS
Incorporated
1925
investing in
A mutual fund
a
selected for
list of securities
possible long-term growth of
capital and income.
Incorporated
investing in
A mutual fund
list
of securities
but they are
A prospectus on
each
fund is available from
your
investment dealer.
The Parker Corporation
200 Berkeley
I
j
KINGSPORT, Term.
E.
Kibler
Staff
Inc.,
WELLINGTON
Stock
port,
FlIND^
of
of
Exchange,
Tennessee
New Street. He
William
the Sales
Company,
joined
McCarley &
members
Investors
—
has
(Special to The Financial Chronicle)
CLEVELAND, Ohio
Sampson
and
Thomas
have
become
First
Cleveland
New
Office,
was
129
East
formerly with
Diversified
Services.
tional
City
members
of
Sixth
investing
bonds and
ber
$12.80
end
at
Check
Canada
or
WALTER L.
stock at
MORGAN,.
President
July 8, 1959
on
at
May. 31,
Novem¬
31,
$12.38
and
General
Fund
the
at
$10.94
on
Ltd.
re¬
Fund,
Interested
and
ago,
year
This compares with assets of $98,-
ATOMIC
We will be
glad to send you a free
Development Mutual Fund, Inc. This
stocks selected from among those
Ineligible for
Common Tr. Funds
•
The
Governors
of
Board
of the
Federal Reserve System, in
that
asserted
investment
an
a
investment
in
trust fund
common
of
rul¬
Regulation F,
relative to its
ing
by
the
Atomic
Development Securities Co.,toc.Dept C
1033 THIRTIETH STREET, N.
a
be
issued June
was
16 and published
following day's issue of the
Register."
The
Federal
delegating
Lazard Fund,
management
and "payment of compen¬
powers
The
IXC.
sation for investment management
services." In its opinion, this would
be
at
In
and
and
it
"makes
fiduciary
WHICH SET INTERESTS YOU?
.
Report
for the six months ended
such
invest¬
June 30,
1959
re¬
under
purpose,
exclusive; management of the
bank maintaining such
,
as
special and
a
Federal, Reserve
1908-1928 Inclusive
that
clear
for
on
stated that the
authorized
are
trusts
stricted
Approximately 130 Volumes in All
stated
limitations
and
it was
use,
funds
ment
the
the
of the fund.
uses
defining common trusf funds
indicating the purpose of their
their
From 1895 to 1939 Inclusive
with
variance
purposes
law
ADDRESS
or
Phone
Edwin L. Beck, c/o
L
—-
W.
WASHINGTON 7, D. C
shares
would
trust
growth in principal and income.
in violation, of the stated purposes
and uses of the fund.
The ruling
Stock
EXTRAORDINARY
Write
.
companies active in the atomic \
field with the objective of possible
of
with
inconsistency
portion
of
funds." The
said it was "im¬
the
administrative
of
investing
such
funds
in
Available upon request
any
invest¬
ment trust shares."
"This
\
opinion,"
it
concluded,
"only concerns itself with the in¬
ma mr
>
prospectus describing Atomic
fund has more than 75 holdings of;.-
Fund Shares Held
Exchange.
■"
cash
$12.46 at
ports net assets on May 31 of $98,174,742, equal to $15 on each of
the 6,546,6*44 shares outstanding.
Woods
Equity Fund
re¬
follows:
Insurance
May
pressed
one
CITY
$11.73
November
of
volve
Wellington Fund
□ Wellington
in
July 23,.
August 15;.
shareholder's option.
May 31, 1958.
•prospectus or write to
□
1959
net
share¬
Institutional
1958;
Fund
Institutional
investment dealer for
cf
from
share
1959^payable
Reserve officials said it would in¬
Another Set
a
holders of record
share
per
as
Fund
and $9.49 a
^
investing pri¬
Wellington Cqjnpany
Philadelphia 3, Pa.
5c
investment income to
latest
Ltd.
value
compared with $10.75 in
FOR SALE
The
DIVIDEND
30,
authorization
possible long-
the
Shares,
31,
Growth
Commercial and Financial Chronicle's
future income.
Ask your
May
on
OFFER
growth of capital and
quarterly
1958, and $10.32 on
May 31, 1958; Institutional Found¬
ation Fund $11.03 at May 31, $10.47
at the end of November and $9.32
marily in common stocks
term
$6.67
May 31, compared with $11.53
November
2 Sets of
selected for
com¬
and
November.
last
asset
net
"Federal
profit possibilities.
Fund
share,
of
close
Institutional-Bank
preferred stocks
•Ate EquLtu
a
of its individual funds
selected for conservation of
come and in common stocks
selected for income and
the
4,019,168
ports
in
principal and current in¬
Inc.
November
on
at
in the
FUND
$7.10
$26,787,614
Institutional
Building,
Midwest
the
Fund,
period totaled 4,667,633, compared
Corporation, Na¬
East
a
30,.^ 1958.
Capital gains distributions
amounting to
15
cents a share
were
paid
out ' during _the
six
months
ended
May
31,
1959.
with
REctor 2-9570
Chronicle, 25 Park PL, N. Y. 7
in¬
business ma¬
against
share
a
Income
or
with
share
a
in- electronics,
drugs and
chines. New^ppsitions were taken
reports net assets at May '31 were
pared
connected with The
York
in their Kings-
the
G.
months "were
surance;:
THIRD
$33,206,130,
John L.
—
$18.58
share on 15,814,330 shares
year
$35,884,-
share,
a
and
a
earlier. Main additions to
investments
during the last
12
a
ago.
Institutional
With First Cleveland
Joins McCarley & Company
A
A BALANCED
beyond for that matter,
to be sure, will hibernate when
not representative of the 4,000,000
I
Street
Boston, Mass.
^
1958.
adversity strikes,
holders of mutualfund shares. Unlike the generation that went before, the small fry
today want investment management that gives promise of steady
growth of invested capital. There is no lack of problems for fund
managers today, but they may very well create unprecedented
opportunities, not least for the trustees of the people's capital.
Tapeworms,
income.
year
Shares
'
$18v.21
or
$36,616,888
on
$10.01
1958.
assets at June 30 totaled
gains could be even sharper, regardless of the trend in the
stock market. For the public has large sums of money to invest
and wants to- invest, so the determining factor musk be 4he zest
with which investment management communicates with the people.
a
net
$4,583,975,
394,602; shares at No¬
30,
months ended*
at-a new
that date,;; according to
the quarterly report. The report
placed assets on May 31 at $273,357,459, equal to $14.14 a share on
19,336,501 shares outstanding. This
compares
with
$158,249,112, or
high
Petroleum Corp. of America net
574,
the end of 1959, and
31. of
>
May 31. Net assets were
with $3,771,726,.or $9.56
on
vember
the
for current
Ijian 41% in the 12
$10.67 a share, on the
shares outstanding. This
share,
a
Fund
Growth
asset value
of its shares gained more
Fund reports net
of each
to
compares
badly).
From here to
.
Income Fund
had
May
on
429,512
4,000,000 mutual-fund
first half of
1958.
Delaware Income
equal
much glib talk that "the public" has done even
professionals" in this stock market. While there
is nb<d$#ht that'some people have turned quick profits in volatile
electronics and space-age issues, for most smq.ll investors the,
changing pattern of the market has been frustrating and a good
"deal less than fruitful. And, of course, there are no statistics to
show the number of people, noting the changed nature of the
market, who have withdrawn from the field altogether.
Investment managers can hardly be* oblivious to these phe¬
nomena.
Redemptions among the mutual funds in the first hall of
1959 totaled $430,000,000 compared with $308,102,000 in the last
half of 1958 and $203,161,000 in the initial six months of last year.
At the same time, a well-heeled public has been buying more
mutual funds too: $1,100,000,000 worth in the first half of 1959, up
from $922,392,000 in the prior six months and $697,376,000 in the
I
Massachusetts Investors
Fund
share, at November 30
assets
Yet there is
Investors
ESTABLISHED
a
better than "the
FREE ON REQUEST
Income
1959. On May 31, 1958 assets
$78,312,770, equal to $12.15
on 6,445,899 shares.
share
Stock
amounted
264,91.9,
Aside from the
movements.
30
June
on
compared with $8,602,322, or $9.14
problem of spotting market trends has become a more
chore for professional investment rnaangers, entrusted
over
.
reports
May 31 had neinsets of $12,equal to $9.9.9 a share,
on
accounts and 27.5,000 closed-end
accounts, it is extremely hazardous lor the individual who must
stake his fortunes on one, two or even three selections. Many
small investors who bought conservative, well-managed, dividendpaying equities now are asking themselves why these issues have
failed" to reflect the strength manifested in other sections of the
list. Many of these people have no understanding of money rates,
credit trends, powers of the Federal Reserve Board and the rest
of the elaborate financial" apparatus that often govern market
with
assets
ago.
year
.
were
a
International
Commonwealth
If the
PROSPECTUS TO
INVESTMENT DEALER OR
New York 5,
advance.
to attain
the future of equity
and the indexes were
oils have stumbled
INFORMATION
FOLDER AND
28,
a share. This
$85,656,216
and
*
a
to $42,575,779, or $18.92 a share,
against $35,868,380 and $15.93 a
share at midyear 1958.
setting all-time peaks.
"Still, the ragged nature of the advance scored thus far in 1959
must be apparent to the most casual observer. Whereas 1958 was
a
year in which the odds were 41 to 1 that you held a stock in
the plus column, this year has marked a decline for
utilities
(money-rate stocks), a moderate advance for railroads (by no
means
uniform) and buoyancy in the industrial segment 'the
Na/j/ml
120 Broadway,
the year
than a\ fortnight old
the summer less
firmer tone.
a
majority, of stock
JSmMi ZkiU Scuei ,
YOUR
in the ver¬
the share list
preferred issues (moneystocks), there were few stocks bobbing up among the new
lows, advances were being scored by a plurality, and even a
on
rate
FREE
net
^
But with
took
FUND
share
a
American
the stock market was,
widespread anxiety over
peaks stirred
new
$26.99
Opportunities
"sloppy." Day after day lows for
outran highs and the majority of stocks dealt in failed to
The failure of pivotal stocks (used in the various indexes)
INVESTMENT
0^
&
nacular of Wall Street,
MUTUAL
with
compares
RICH
Report
933,788, equal to* $15.03 a share, »;
and 6,583,401 shares on February
Express Co.-reports net
assets at June 30 totaled $101,892,Adams
o07, equal to $32.11
Brown and
of
.
(130)
vestment
mon
of
the
funds
of
a
com¬
trust fund in investment trust
scares and is not intended to ex¬
press any view as to the propriety
of
such
an
investment
for
vidually invested trusts."
indi¬
44 Wall Street,
New York 5,
N. Y.
Volume
Number
190
5362
.
.
.
The
Commercial and Financial Chronicle
(131)
in
the past quarter in
Gull' States
ducting
the principal amount
outstanding debentures.
Utilities, Robertshaw-Fulton Con¬
trols,
Southern
Company
and
Washington Insurance. The, 5,000
shares
Life
Connecticut
of
Insurance
Co.
porting date indicated 85.93%
Securities,
Inc.,
November
Investor?
reports
assets
net
Continued
Fund,
May 31 to¬
$10.13 a share,
Inc.,
of
reports/realized net earnings
from
investments of $2,784,496 in
the six
of
months
ended
earnings
$2,631,687
..
May 31,
that-source
the
year-earlier
in
tho$e
investments
on
so.
aged
Funds
has
had
difficulties
with the Securities and
Commission,
which
nounced^ it
ings
had
Exchange
...
istration
statement.
after.
The
fund's
contract
The
-fund
sl^rtly
there¬
directors
Slay ton Associ¬
ates, Inc., manager and investment
adviser of the fund. Actions of the
Slay ton
question
Brouk,
group
brought
the
S.E.C.
by
acting
aged
president
Funds,
there
were
rpfestion
fu^d to
John
of
^formed
"no
was
into
Man- '
holders
about the
fullv dis¬
ability of the
charge all of its contractural obli¬
gations."
All
Mercantile
bank, acting
of
earlier,
annual
net
value
asset
$10.67
to
shares
from
shares.
Railroads
chinery
sing'e
industry
12.83%
Mav 31.
9.08%
of
ma¬
largest
position
during
and
retail.
the
in
477,000
third
7.71%;
automotive,
5.16:.
steamship,
4.17%,
new
a
June,
and
best
month
history
of
fund
mutual
made
on
the
organi¬
one-day record
was
of
June
$1,-
10 and
six-month sales of about $47,000,000
the
were
running
71%
ahead
of
Closed-End News
Carriers
Bullock
crease
which
no
one
seems
&
General
fund
in
Corp.,
the
the
Calvin
reports a 22%
group,
in¬
in per-share net asset value
Obviously, the labor monopoly is out to get what¬
situation, and is not particularly dis¬
posed to j defer to what appears to be the wishes of the
Washington authorities. There is abroad a nascent spirit
of financial recklessness which is
always likely to accom¬
prosperity and which is also likely to bring it to a
pany
the reckless
endeavors
which
While the
Administration is
tend
to
stimulate
now
upon
us,
and
are
the rank and file
ready to support the govern¬
ment in such vigorous action and also
willing themselves to
avoid those
things which bring us into danger? The Ad¬
ministration talks
vigorously if somewhat vaguely about
balancing the budget and going further to obtain a sur¬
plus; it would have Congress include price stability as
one of its
goals in the so-called full employment act; and
it avows determination to maintain
—which it
upon
was
not
so
a
sound money
policy
ready to do when the recession was
us.
So
far
so
good, but there is little evidence
Administration
or
Federal
outlays at figures that were never dreamed of in
peacetime prior to World War II. True,, of course, it is
that the President has.
complained about the utter abandon
with which
Congress has year after year sought to buy
the
farm vote.
Apparently his prescription would make
appreciable reduction in this extravagance, but his
proposals bear about the-/same relationship to a
really
sound farm
policy as a five fingers exercise do to a
Beethoven
symphony. No one at all has had the temerity
even to
suggest that anything be done about the cost of
the
Veterans
'These
are
Administration
but
needed to set
a
our
few
of
the
and
its
various
instances
that
date
$32.17,
with
$26.26
May 31,
said
1959,
value,
a
were
year
net
value at.
compared
earlier.
assets
computed
at
at
May
market
SI9,917,838 before de¬
be placed
where
activities.
action
is
fiscal situation under control.
earner
was
the
major political parties is
ready even to make a beginning in eliminating the major
items of expense which, if allowed to
continue, must keep
net asset
ended
that
either of the
Per-share
Bullock
to
spending- at Washington and to various other
dent.
months
"
31,
or
it.can out of the
according to Hugh Bullock, presi¬
the112
undertake
initiate.
ever
It is still obvious—as it has been for
—that no politician dares*even to
for
to
eager
some
corresponding 1953 period.
closed-end
but
to¬
high.of $8,-
the
27-year
A
action
Custodian Funds Inc.
$469,000,000
zation.
'
.
reached
919.0004
in
observations^uch, however, does not
to^be the fact. There are forces at work which not
only threaten inflation but definitely would limit the life
span of the prosperity that is ours at this
moment, and
they are often forces which are amenable to governmental
seem
Ready to do the Needful?
3.35%
Keystone
sales
steel,
6.77%;
building,
bacco,
on
next with
Other large industry
included:
machinery,
4.97%;
resources
was
entertainment
with $8.63%.
positions
5.72%;
total
It would
point where it is willing to take the drastic steps
necessary
to make sure that the inflation it
fears will not come
fund's
Household
year—assuming that the general busi¬
now
appears likely to be.
be heartening if the situation could
safely
a
long while past
suggest that the wage
footing of equality with the rest of
us before the laws of the land.
Here it is not only a matter
of labor's virtual
immunity to the anti-trust laws, not only
a auestion of it
having favored status under special legis¬
lation allegedly
designed to protect the wage earner from
exploitation, and not only a problem of
protecting the
on
a
by the
We must not be understood
consumer.
consumer credit
ifTgeneral. What dis¬
tendency to abuse rather than to
is the evident
us
this
use
type of credit. It, too,
promote
can
its attendant ills. The Nixon
committee is
when it looks forward with
tion, but
we
on
inflation, and
sound
ground
uneasiness to possible infla¬
not suppress a doubt as to
whether it
can
realizes what is
really
necessary to ward it off.
Schwabacher Office
Hawaiian Trust Co. He
was) assis¬
tant vice president and
head
In Honolulu
the
Schwabacher & Co. extended its
next
394,602
on
,fthe past six months and accounted
for
useful
disquieting 'to many to note the degree in
things are in this day and time carried
condemning
turbs
pro¬
The real question is: Has the
government reached the
semi¬
period
replaced
the
spending
climbed
the
$9.56
wild
outstanding
31,
months
share
a
new
a
same
to
429.512
on
for
such
a
psychology.
working toWard a bal¬
anced budget (and even a
surplus) during the current
fiscal year, all too much of its
hope is based upon expecta¬
tion of business
improvement and consequent higher tax
receipts..
six
In the
net
May
on
according
report.
demands
premature end. Some, of this state of mind is traceable
;
.
to reach
$3,771,726
by
Louis
Fund's
S4,583,975
against
St.
a
Income
21Vz%
rose
high
held
are
Co..
custodian.
as
Delaware
assets
assets
Trust
their
be left with these
ended
with
in
be
to
upon
climate is what it
ness
against
Managed
Funds,
questioning the accuracy of a reg¬
a
vociferous
more
recently an¬
proceed¬
started
halted sale of stock
insistent
so
now
occupying themselves for
taking advantage of the budding boom
to get all
they can from their employers and the public.
The politicians who had been
planning to use bad times
as
'campaign material n.ext year are hastily and somewhat
forlornly looking around for other issues which may be
.
a
were
grams by government are
the most part in
$80,448,874, against
year earlier.
Man-1
were
$54 037,133
year
also
the cuff
on
dismay of
politicians who laW
is
which all sorts of
nostrums, some of which now appear both
silly
dangerous, even possibly to their former advocates.
The. ogre of
unemployment has .largely vanished. Wage
earners, their unions and other spokesmen who had been
Net assets at.the close of the latest
period
It
now
various
to
$7,838,963
May 31, 1958.
rose
$4,919,557
not able to show evidence that their
pre¬
wanted.
are
and
up
from
leaders who in all too
own
have
public. It is also and fully as important a
problem of re¬
wage earners, whether members of a union or
not,
and tljeir
representatives to obey the
ordinary laws of
the land.
Unfortunately, few realize the fact that the
picket line and the way it is now
commonly employed is
in
outrageous violation of law as it has in the past been
interpreted and of traditional conceptions of fair
play—4
and it would
hardly be an exaggeration to say that it is
one of the
mainstays of unionism today.
the devil is well, and the
pressure for various
nostrums is weaker—somewhat to the
costly
period. Unrealized appreciation of
from
with 14.05%, chemicals and drugs
13.61%, and retail trade 9.56%0.
Less Pressure Now
But
.
St.
Louis
from
......
scriptions will do what is
2,602,439, compared with 2,501,758
outstanding on November 30.
Funds,
,
Pe^r°leum with. 17.52%, utilities
AsnWe
against $24,611,831 and $9.84 on
November 30, Shares at the elose
of the latest reporting period were
Managed
instances
plainly shown themselves to be
hardly above the ordinary racketeer when it comes to
dealing with the members of their own union or with the
were
from first page
others who
Inc.
on
or
wage earner himself from his
many
holdings
quiring
30, 1958.
Selective
taled $20.36*4.464.
%
.
group
in gov-
repre¬
senting live separate funds and 15
industry share groups, reports'as
of May 31 net assets amounting
to $167,309,637, against $145,996,at
in-
preferred stocks, and the remain-
Group
der (investment
reserves)
ernment bonds and cash.
Largest
vested in. common stocks,
8.21% of
net assets in
corporate bonds and
elim¬
inated.
350
-.1,
*e~
General
were
of
31
operations> to
lands
on
Ross
the
Hawaiian
Wednesday, July 1.
&
Co.,
of
Honolulu
joined Schwabacher
ian
Richard
partner
of
resident
F.
effective that
Guard,
Ross
&
general
Co.,
becomes
the
of
manager
Schwabacher
has
its Hawai¬
as
Islands division
date.
Is¬
new
brokerage
old
island family. He
dent of the Honolulu
change in 1958. His
The two firms have had
close
a
when
of
an
presi¬
was
Stock
Ex¬
staff includes
registered
representatives Albert
and K. C. Luke.
Schwabacher & Co., is one of
the
largest investment banking
Chang
and
brokerage firms
Coast.
division.-
pi
department
he left to join Ross.
Mr. Guard is a member
San
Its
the West
on
headquarters
Francisco and
it
are
has
in
offices
in Fresno, Los
working
Angeles, Monterey,
relationship for years.*
Schwabacher & Co., has been the Oakland, Palo Alto, Sacramento,
mainland
correspondent
for
Ross
&
Co., and for its predecesor firm,
Andrade & Co., since 1941.
Ross & Co., was formed after
World
War II
Ross
as
Co.,
on
a
by the late Findlay
to Andrade &
successor
the
death
of
managing
partner- Joe Andrade. Andrade &
Co., was organized in the middle
l^pg,
after
served
as
island
Ltd., and
Union
of
as
who
office,
in Ross &
partner
old
change, Pacific Coast Stock Ex¬
change, Chicago Board of Trade
and other leading securities' and
commodities' exchanges.
'.v;
.
With Reinholdt & Gardner
of
(Special to Tffa Financial CnnoNicxE)
becomes
resi¬
Schwabacher's
became
partner
a
Co., in 1956 and general
in
he
Campbell,
officer of the
manager
islands
had
the' old
of
J.
Schwabacher
is
now
in
its
fortieth year. The firm is a mem¬
ber of the New York Stock Ex¬
Company.
Guard,
dent
Andrade
A.
an
Trust
Mr.
1956,
Mr.
partner
a
firm
San Jose, Santa
Barbara, Santa
Rosa, Calif., as well as offices in
Salt Lake City and New York.
'
1957.
was
From
1946
associated
until
with
the
ST.
LOUIS,
Mo.
—
James
with
Reinholdt
&
Gardner,
changes.
as
President of the Bank
deutscher Lander 10 years
ago,
in Germany were in a
monetary conditions
desperate state. Several ex¬
perts, both German and foreign, with world-wide
reputation
and
extensive
experience declared
frankly that the Deutsche mark had virtually no
prospects of ever becoming a hard currency. That
these well-meant opinions
proved wrong, as time
has shown, is no doubt in
part due to a good deal
of luck and favorable circumstances. But
I, for one,
wavered
never
policy,
order
in
my
consistently
to
establish
conviction that
and
energetically
and maintain
a
monetary
pursued in
a
stable currency,
must succeed.
"There
are
perhaps two principal lessons to be
learned ft*om*l&e German
experience.
The first is
that
currency stability can be achieved and pre¬
served even under the most adverse circumstances.
The second, and even more *
significant, is that a
policy, firmly committed to currency
stability, not only does not conflict with a high rate
of economic growth but indeed is essential to its
achievement. Germany's remarkable economic re¬
monetary
covery
and
expansion
over
the
closely linked to the restoration
decade
past
and
was
preservation of
a
strong and stable monetary unit."—Dr. Wilhelm
Vocke, President of the Deutsche Bundesbank in a
recent
Of
address in this country.
course
it
is
essential.
Who But Keyneseans,
Neo-Keyneseans and New Dealers
But
how
the
notion
hard
now.
it
seems
400
Locust
Street, members of the
New York and Midwest Stock Ex¬
Essential to Growth
"When I assumed office
L.
Johnson, Jr. has become affiliated
for
many
*
ever
of
doubted it?
us
to
accept
The Commercial and Financial Chronicle
(132)
32
v
■
they realize that the manda¬
tory oil import quotas indicate the
President is leaning more toward
due to quotas.
Rumanian petroleum
Greatest
Sweden is discrimination from the
Euromart
this mar¬
U.S.S.It.'s Ilublc* Hopes?
Why
part of the Russian
second
The
.scheme to cripple America" s com
the
and
mentous
retaliatory measures as
withdrawing from the new Euro¬
ination
This collective action should dwindling domestic oil resources,
Moscow may be able some.
that
bility
the
tariffs
of
and
naive to believe that these threats
could
multilateral trade pact created to
in limit tariffs and other forms of
world markets as the Kremlin re- discrimination
by 27 countries
cenfly has emphasized.
who account for 85% of world
The boast that the East bloc trade. Specific steps would be imwill produce .more than half ol the plemented
only as temporary
world's total industrial goods by measures
until the menace is
1965 is responsible for the Krem- overcome.
When C o m m u n i s t
lin's reasoning. It also, must be re- China was stealing textile markets
lTicmbered that Russia's $8 billion from our Southeast Asi^n Allies
of gold holdings are the largest early this year by undercutting
in the world after the U. S. and ^nd dumping, 'some Western nathat
today
she
has ^surpassed tions
did
successfully impose
South Africa as the greatest an- emergency restrictions on imports
nual gold producer because of sci- from Red Chinar
entifie advancement in being able
In addition, as the less-develto
work
Siberia's
once
frozen oped nations suffer from this Rusmines all year long.
sian trading technique from time
By far the most important of to time, the U. S. should
rush
the three tenacles of Khrushchev's technical assistance to the stricken
economic war is the dumping of country
from
money
allocated
Russian metals and
other com- under the President's Emergency
modities in world markets. Last Fund or under the International
dollar
the
replace
wijj
15
have to depend 100% on foreign
that the ruble gradu-
Jess chance
aliy
Every time the U. S. imposes a
quota or tariff we lose an Ally
who quickly retaliates with corn-
parable controls against American
products. Is this the two-way
trade that Washington preaches is
our goal? Within the short span
of the last two years the State Department has received nearly 50
official protests from Governments sharply attacking our re-
present a carefully designed plan
to end the wrangling through
the
the
for European Eco¬
Cooperation, an offshoot of
original Marshall Plan and
now
Mutual
course
than
of
tions
full operation, about
of U. S. exports to that area
industries
other
of
Number
stalemate political infiltration, which always
economic is the sequel to
its economic
and political penetratiop in Bo- squeeze.
livia.
Experieince
recently
proved
Large-scale Soviet exports of that when American technical and
copper,
lead,
zinc,
manganese, economic help is available to a
mercury, nickel, iron, sulphur, as- friendly country the Soviet Union
and
which
arsenic,
overplay its hand. Last year
likely in the future, could also R geared for an economic of fenbarm
the
economies
of Brazil, sive in .Argentina and Mexico and
Chile, Cuba, Mexico, Peru and as usual stepped up Communist
Inasmuch
the
of
visited
past
year
what
we
Russia during
openly told
expect
from
when
can
work out
the
in
a
of
must
not
the
the
America
reduce
to
loans
S.
have
industrial
each
development,
Government quickly expelled
viet
diplomats
Soof di-
charges
on
rectly fomenting the strikes.
to
v
cooperative plan with
a
Government
the
countries where U.
might change its course,
businessmen
trade unions of
Republics. However,
Communist - inspired riots
out recently in these two
in
two
broke
The Administration should call,on
the
vestment abroad and do
current
markets
European
the
medium-sized
sell
60 %
exporter
the
less. Although
adopted by Canada after
she realized protests to Washing-
business
ditional
in Congress
ECM Leads
to Regional
Imitation
European
Common
the
But
Market
is
only the start of
trend in trade that
tive
to
a
!
u
result
This
would
the
to
this Administration's serious mistake that American business was
not likely to have shown more
than a 5%, rise in sales to Canada
because ol retaliation, as against
a 10% jump predicted earlier this
year. Eisenhower's decision finally
to exempt Canada and Mexico
from, controls removed a distresssource of irritation so that
trade with the Dominion should
now return to normal..Venezuela,
country s
largest
LatinAmerican customer, is also adopting similar restrictions against
U. S. goods.
h
ln~v
prices
t
s
th
,
'
t
•
t
lore5gn economic policy
rifMT,nnHim>
imrTrnvP
irnmoHiatP
_
..
t
nil_#acs
lldw iVAaieiiaI Muoias
Imposition of lead and zinc
quotas by Washington in 1958 will
lead to a 25% drop in Bolivia's
dollar earnings this year. Peru
F.ounls on loss of about $70 milllon 111
sales to the U. S. and
Mexico figures about half of that
am.olmt Here are three friendly
fmpr
"\qUantlty
is now at an all-time high since natlons ,n ,Latm. America alone
of
Russian
dumping, the "Thirties."
History has proven Z°Se !^,%as?]s from.,tb£ UT m
be somewhat similar
ti
procedure
that
England
industry could
front
§oviet
no
longer
dumping
con-
of alumi-
th
•
d
tatn
threatened to resort to when Brit-
ish
wnv
thrnntrh
tn
t
?h
»»VnrlH
Hro/in
wnria
j
nPnL
»ivr'nt
between
started
two
ic
n,-,o
vrarsinceBibliialtimes
fe
,
with
agreement"
Moscow to limit the Russian alumsales
'num
......
ever
nations
that
of the other's
^deHons
commercial
Yet todavevery
:
try in the Western world
as
re
coun
well
as
in the Communist bloc outwardly
.
Surveys show that if American orociasms
greatest fear is the
industry were forced to undercut
spreading protectionist policies of
Soviet
prices
m
such times of the y s At tl e rerent pnngre«
emergencies
they
could
offset of the international Chamber of
losses
some
tomers.
by
countries.
gaining
new
For
instance, aluminum
inXncrtScinunt
°Ut ""V"
per capita consumption
m
two-tenths
cus-
Commerce in Washington
tlie - underdeveloped bnsinessMen
lir
a
of only
pound of aluminum
nations
nations
to
the
.
private
wold
sending
each
leading
of the
rielegatinno
53
hit
Protectionist Left Versus Free
ohroni/od
win,
tu
a
.
j
be
.
1
svn-
lmes- Further action last month
by the President in raising wool
quotas prompted Britain's Presi-
th,e B°ard of Tlade,-T Sir
£ent.
David Eccles, to warn the U. S.
fhat he was cautioning the ster-
linS area to take necessary countermeasures.
In view of the enemies we have
made abroad and the dollar losses
suffered
by
American
business-
,
men
because °f retaliation against
our £°ods< there is a desperate
urgency
reduce
to eliminate or at least
quotas and replace them
alternative of subsidies
ministra-
international
mfnmevne
Rnt
our
l. nail0nal. commeice. But oui
business friends
from
abroad
,
vvere
left
all
the
more
confused
American
ket and
several smaller groups in
was
thor-
annually
'
for
lead,
♦
zinc
and
oil
would have been far less than the
taxes
paid
to
the
•
Government
Common
Latin America such
Mar¬
the Hague
as
Club, Paris Club and "Little South
Market."
American
Latin American
is
An
overall
Market
Common
certainty by 1961 and the Far
regional
trading
area
a
Eastern
recommended
the
by
is
Commission
only
Randall
of
matter
a
time.
There
U.
S.
two
are
to
the
that
steps
take
dis¬
against American
must
crimination
prevent
by the
Euromart members
and to prepare fpr the day when
more than 75% of world trade will
goods
be
on
basis.
area-to-area
an
imperative
absolutely
the
make
the
it
is
empowered
Reciprocal Trade
authority
with
the
under
Act
Agreements
tariffs
lower
of
use
negotiate for
with the
to
to 20%
up
Market members
Common
Geneva
full
is
It
that
Administration
meeting
the
of
the
at
General
Agreement on Tariffs and Trade
in 1961. This bagaining will be the
single
rni'
should
Central
zinc curbs t,ot only by cutting
imPorts from America but by,
with subsidies where feasible. The
Trade Right Hand
would
,
concerns
of
now
1959," which
ac¬
approximately $7 billion.
the Boggs Bill
Favors
many
six Common Market members will
most
"
°
c
snow that the cost of the subsidies
operation. These efforts of Pleading for greater movement of
„
.
,
.
,
..
7-
ifinp'
100%
.
of
from
terly attacked our Administration
increase
for it
narrow-si o-hted rfrngram
1 13 narr-ow sighted piogram.
annually from the present seventenths a pound in the less developed
is
will
eventually will
all, there is little doubt that the
1959 will be down $150 million
because of the quotas. Australia
also reacted quickly to the lead and
rt!T tln'tn61«'• ??,weve£ London understood each other's trading stepping up trade with Communist
£1 nZ,?S
!hf
f'CCnS,S; necessities and did not live in the Jr111™ 111 several manufacturing
fully
negotiated
the
so-called
"gentlemen's
There
bill entitled H.R. 5,
provide the proper
stimulus to nearly triple the pres¬
ent
outflow
of private
overseas
capital from $2.5 billion annually
regional marketing
throughout the world. First
lead
Act
Tax
tually
new
a
a
the "Foreign Investment Incen¬
or
arrangements within Euromart.
Minister Macmillan to alter the
oil quota decision were fruitless
at first. Shipments to Canada this
business.
American
agree
eventually must
with funds invested
sound
ventures
by
aid
in
abroad
all
we
course
foreign
replaced
be
aver¬
gained
from
or
licensing
manufacture
direct
Of
that
large U. S. corporation antici¬
pates a 30% drop in sales, it will
more than offset this drop by ad¬
the
it.
about
while
will
.
the outflow of private in¬
something
courage
age
emergencies, it necessary, when mcnt is the growing wave of
pro.
particular commodity appears tcetionism in this
country which
as
must
that small business
here will lose as mucfi as 80% of its
reveals
vey
ton and pleas by England's Prime
war," been frequent and constructive to
"economic^
in the hopes that
idly by
Kremlin
these
Government
S.
U.
sit
ex-
were
Khrushchev's
the
c<an
activity
leading- trade
as
who
perts
are
K
Venezuela.
points
stop talking about the need to en-
not 1958 had it not been for the man-
brought on by the tin
resulting from
Soviet
bestos
ten
Administration
Ten
this
of
leading
country's
'
organizations, including the
trade
respected Chicago Export
Managers Club and the National
Foreign
Trade
Council,
have
widely
datory curbs on imports of petro-. join with the other 11 Western
leum. The Canadians, who rep- Euorpean Allies to form some sort passed formal resolutions support¬
of a free trade area group, prob¬
resent this nation's number one
ing this bill introduced by Con¬
hardships Kremlin from following up with foreign market, were so angered by ably in I960. Already we have a gressman
Hale
Boggs
of
the
the
to
traced
be
the
of
four
the
that
is
affected by the dumping in order
munist-inspired riots and disord- to tide our Ally over the exchange
ers
against the U. S. in Bolivia crisis. Tjiis wpuld
prevent the
can
Security Administra¬
tion.
A> Mc¬
Graw-Hill "American Letter" sur¬
oi
exports
na¬
in
arc
areas
layan tin, Colombia platinum and
Canadian aluminum. Recent Com-
nomic
will be adversely affected.
textile and oil imports,
There is" no better example of
retaliation
Organization
experimental
period
Once the coordinated pol¬
Market
to
mediate the
dispute regarding
proposed economic integration.
Not only should thef U. S. send
unofficial
observers
to
coming
free trade area talks but it should
colonies, is
Common
offer
the
businessman before the
the
Washington
should
roles as a leader and
its
certainly
icies
35%
strictive action on lead, zinc, wool,
planned
year
-
elapses.
sources.
repercus¬
Thus
British-French
bound to bring hardships upon the
American
serious
have
not
sions.
assume
for
quotas
of their
members
is
It
Agreement.
Monetary
pean
be
traded.
necessary
openly prom¬
such
ises
markets where it eral system of tariffs, quotas or proves that the White House car
six
leading
Western
European
universally quoted and embargoes against Communist ex- be grossly misguided. Thi* forced,
While there is some possi- ports when they become trouble- consumption
of
our
steadily countries, with the eventual elim¬
world
the
in
'will
Governments
take
to
curbs., Switzerland
preparation for regional
trading areas.
The mo¬
economic integration of
market
their
and
prepared
are
m
ket.
for the
Norway and
today
worry
people of Denmark,
Foreign Economic Policy ?
crating U. S. trade With
'
ket,
with the
added economic
strength resulting to Germany.
from
Improve Our
How Can We
Thursday, July 9, 1959
,
S
profits lost on overseas sales
Since shipments of
to the U. S.
protectionist
policies
than any played an important part in the
time during his term in office. At supplanting of voluntary oil con¬
the same time there are now more trols with mandatory, it is also
strongly recommended that the
than 100 bills in Congress to im¬
Administration resort to already
pose or raise tariffs or quotas. lit
available authority to restrict im¬
addition, the lend, zinc, steel, texlion's program,
aid the econ- tile, toy and other industries will ports from the Communist bloc
amies of. the less-developed areas, be demanding more protection be¬ that are related to so-called na¬
tional security industries.
fore long.
How to Cope With Dumping
Number three of the ten points
Certainly some protective action
To
cope
with the hazards of may be justified from time to time the U. S. must face up to without
Moscow's
dumping Amoves it
is and Congress has provided the delay evolves from the operation
of the European Common Market
for
Continued from page il
...
!
the
severe
countries
S.
the
since
fronted
U.
will
ever
con¬
Euromart
six
together
act
as
a
negotiator. In fact, it is
possible that by 1961 the
.
quite
U. S. will have to swap tariff con¬
cessions with the 17 nations repre¬
senting the entire free trade area
instead
of the six.
Should
ern
17
the
sufficiently to form
to compromise
of
sort
some
you
nations of West¬
Europe by chance not be able
count
must
economic
trading area, then
a
on
warfare
period
a
unknown
of
to
on
serious
have
American
consequences
and
industry
trade.
Already the Germans, and partic¬
ularly Chancellor Adenauer, are
fearful that the British will make
concessions
Berlin
trade
to
the
in
with
Khrushchev
hope
the
Soviet
cause
Bonn supported
stead
of
trade
ish
England
area
resent
in
on
increasing
of
bloc
free
negotiations. The Brit¬
their
exclusion
from
the benefits of the Common Mar-
Ways
Among
Corporations to profits of
S.
corporations on their
worldwide
business
operations
outside this country.
Trade
all
U.
the
At
moment there
companies
present
200 American
some
are
waiting for this 1,4% tax reduction
the 52%
regular corporate
from
rate before
If
this
tax
they will invest abroad.
bill
to
were
annual
pass,
receipts would be cut by the
relatively
of
amount
small
than
more
million
$250
Yet the Secretary of
no
year.
a
Treasury op¬
poses
this
legislation
on
the
grounds that "the budget must be
balanced and this is not the time
s
for tax cuts.
It
is
officials
a
defense
quently would be
in
front.
in
answers
S.
realty
conse¬
vital weapon
a
combating the cold
economic
in
and
measure
by
U.
and
that H.R. 5
businessmen
is
recognized
generally
Government
One
war on
of
our
the
best
the past to the Soviet
underde¬
been the
actual
American
business abroad where peoples of
challenge
veloped
of
the
capturing
markets
has
operations
of
"other lands
can see
for themselves
display and workmanship of
our
private
and
system.
mind,
it
is
enterprise economy
With these facts in
an absolute necessity
that the President use his author¬
ity in instructing the Treasury to
support the legislation and to stop
throwing roadblocks in the way
of
the House Ways and Means
Committee,
which cannot hold
hearings on H.R. 5 because of
Treasury interference.
be¬
France in¬
recent
and Means Commit¬
the salient features
proposals not
to tax earnings of American com¬
panies doing business abroad until
they are brought back to this
country and to extend the present
38% tax on Western Hemisphere
tee.
of the Boggs Bill are
a
peacetime Europe. Of "course this
could
House
Number
is
that
we
five
of
the
must find
a
ten
points
new
con¬
cept for the long outworn LatinAmerican
good-neighbor
of World War II. Until the
policy
dem-
onstrations against U. S. economic
Volume
190
policies
were
Number
A.
5862
The Commercial and Financial
Chronicle
(133)
manifested
just
year ago with the vicious
Vice
on
President
paid no attention
persistent Latin American
of
of
who
us
bitter
in
there
little
was
many
about
of
1957
and
manganese
ex- ern Allies.
then
a
few
more
min^/tightened the
such
our WesL the number of dumping investiAs soon as we do this, gations carried out by the Treas-
complaints
the
about
the
over
last
six
our
these
Since
the
when
called
his
for
onizing
icies,
world
President
now-famous
reappraisal"
of
win
has
constructive
of
(back
friends.
of
many
These
"ag¬
pol¬
our
taken
is
a
Latin
our
U.
steppedBank
loans,
Export-Import
not
take
^mother
in 1959.,
using"'their $8 billion
is
i
■■
■
■
■
■
n
_■
S.
years
trade
cause
grave
from
1945
the
not
balance
1957?
dollar
support and membership in the
new Inter-American
Development
the
for
concern
to
critical
of
12
Was
it
a
split
decision
bv
the
Tariff Commission automatically
becomes a finding of import in-
tional Savings and Trust Cornpany'
Washington, D. C., an~
llounces the 37th annual convention o£ tbe Association will be
jury.
held
the
the Commerce
relaxing curbs.
Department
It
must
overlooked that sales to
into
not
the
be
Ger-
shortage aaans approximately balanced
that
in- purchases since the latter, unlike
1958
amend-
ment'
This
is
indeed
dangerous
"
and should be revoked
all
After all, example that proponents of greatextremely .lopsided er East-West trade use to bully
the
favorable
included
us
healthy situation.
a
did
to
moves
will
$2.5 billion from
resounding
Washington
series
up
-
the" Vice
nations
of gold. It
right for West Germany to
There are many
economists, in- do nearly $1 billion worth of
eluding myself, who ^believe the trade with the Communist bloc, as
building up of gold by our Allies ^ did last year. This is the prime
Nixon's Treatment Woke Us Up
trip
«tf
Nfll I Bdltk WOlfIGH 10
"
months of 1958. sia's
Deputy Premier Mikoyan are
•True, the U. S. lost $3.3 billion in absurd. The Kremlin
wants to pay
economic short-comings
regarding gold and dollars to foreign coun- for our
exports with long-term,
the Republics.
tries last year. In all
probability low-interest
credits
instead
of
continual
law and since then
produced by
JJ3
friends
as
Bolivia, ury has risen steadilv The 1921 HOlO finiftfAl fiAIIVPIfvIOli
Brazil, Jamaica, Mexico and MaDumpingAct is designed to prelaya rightfully become angry as vent
foreign manufacturers from
Charlptte A- Engel, president of
exports
is
reversing
itself
and we squeeze them out of
their dol- injuring U S producers bv sellin<>-'tbe National Association of Bank
there is confidence the second half
lar earnings.
goods
here
at
less
than
"fair Women atld trust officer at Naof 1959 will show a moderate
rise
Propositions like those of Rus- value" Under
businessmen,
shock
circumstances
tiaordinarily, heavy purchases of
American products.
Already there
are
signs the downward trend in
had long listened to
we
1
^.ul°Pe drougbt caused
the
accusa¬
daily contact
"with Latin American
riots, for
to
ma
p?neVimnrHrnnPh/18a"?^6St" erals also
Wash¬
nfeglect. To
were
a
attacks
Nixon,
ington
tions
abnoi
Conversely the U.
is
great
as
an
S.'frequently ter^ at .Hotel Schroeder.
offender
of
the
dumping principal
as
our Allies.
We also criticize the Russians for
dumping yet sometimes
varies little except
Moreover,
grow
we
pay
in- Milwaukee, Wisconsin,,
September 23-25, with headquar-
our policy
for the motive.
the farmer to
produce and then take
it off his hands. When the
price
is right, we dump it in world
our
Appointed general convention,
cbairman by tbe Association's national board of directors is Miss
Marie B. Loeber, cashier, Wisconsin State Bank, Milwaukee,
plans for a. well diversified.
Program are being completed ancf
wil] b.e available later this month,
Prominent guest speakers of
na-
throughout the world
markets' despite the protests of tional reputation and Association
spired the Marshall Plan, Truman the U. S., can use a long list eft
friendly nations.
Bank and a more liberal attitude
Certainly
we meiJlbers will be featured at the
Doctrine and the continuation of Soviet
manufactured goods and should not use it to
toward
stabilization"
of
Latin
antagonize various
sessions.
With
10,500
our
many foreign aid programs? raw materials. Moreover, the State
such nations as Canada
Mexico
women in bank officer positions
America's
dollar
earning * com¬
The dollar scare today is grossly and Commerce Departments are to
modities. In short, the U. S. finally
Argentina,
Australia,
Denmark! in tbe United States today, thereexaggerated.
Make
no
mistake be commended for recently de- New Zealand and
others.
bas been a steady growth in Assolearned that it cannot give aid to
about it, the dollar is well forti- nying an export license to a U. S.
Of course
the
more
^
ciatiori membership. A large number of tbese women bank execuits neighbors' economic develop¬
tives are expected to attend this
meats.
Nevertheless, it is tre- could have. been obtained from that it has been attacked repeat- national convention in September,
ment.
mendously
important
to
watch East Germany but the Kremlin edly
by Downing Street and the
But we have a long way still
Other convention chairmen apour costs
for if they do go much was out to test what it thought
British press. In practically every pointed to key posts are: Program
to travel to cultivate the lasting
remote
the
of
areas
fied
world without first cooperating in
friendship of
a
an¬
selves
Latin
nations
lead,
zinc,
sugar
and
sell
us
pay-
price
our-
we
will
the
market
without
their
materials
raw/
upon
markets in the "Twenties" because
we did not adapt our
products to
ter of
educating our Senators and
Congressmen from the Western
and
Southern states. We must
member
that
is
economy
that
of
stockpiling of Latin
the
essential
not
be
can
to
political
a
used
Latin
each
at
the
again
liness
toward
Latin
a
friends
postwar
feats
tool
the
expense
when
was
the
U.
nor
that
a
the
U.
S.
violation
of
Government
—Miss Catherine B. Cleary, Vice-
the
,
bring
sions
and
key problems that
Department of ComCongressional Investi-
constructive
some
that
and
meet
ness
<fn
detailed
a
future
nessmen.
ported the invasion of Guatemala
*from Honduras in order to get rid
of a Communist-backed dictator.
definitely
will adopt some ,retrenchment program in the face
°f substantial unemployment at
American
home.
to
Revising
plan to
At the
American
a
be
busi-
time weak-
same
the part of
become
conclu-
competition
to
Foreign
Aid
However, the same results can
obtained by putting the tax-
Government
payer's money to work
a
return.
nessmen
so
it
This
Government
is exactly
officials
and
earns
what
busi-
of every foreign country
receiving aid not only prefer
repeatedly
demand
from
Washington. Thus, it is essential
now
put
a
in
regard
to
understanding of anything foreign, trade whether or not it has
do
with international
policy.
trade
Scarcely
a
or
day
Bank and Trust Company, Racine,
Wisconsin; Arrangements
Miss
Negma Timmer, assistant vice
President and trust oiheer, Mavine National Exchange Bank, Mil-
passes
that we do not hear of waukee*,
Enteitainment
Miss
complaints from our overseas vis- Mary A. Ralston, assistant peritors about the way they are sonnel director
First Wisconsin
mistreated when in the U. S. The -National Bank, Milwaukee, Printpet peeve is that of the Canadian ing —Mrs. Evelyn Wilkinson, aswho
is
usually
stunned
upon sistant cashier, Farmers and Merhis
arrival
in
this
country chants Bank, Menomonee Falls,
bv.
the
complete
ignorance Wisconsin; Publicity — local —
of
the
man
inthe
street
reMiss Florence V. Campbell, as.
.
.
,
.,
.
not to further alienate our friends
with gifts they do not want. It is
„
.
'garding the value of his Canadian sistant vice president, Ihe Lank
currency. Nine out of ten taxi ol
Commerce,
Milwaukee
and
"trade drivers, news
vendors or drug National
Miss Emily M. Kener,
strongly suggested that our
through
aid"
program,
which
actually in practice has been aid
significant factor in
confronting foreign competition, not trade, be completely revitalStatistics
prove
that when
im- ized into a long-range operation
ports rise, competition usually de- consisting of (1) technical assistcreases. Therefore, should the U. S.
ance; (2) private investment; and
can
consumer
his
economic
be
all
recommended
sup¬
must be on a diminishing tional security category.
West Allis, Wisconsin; Hospitality
basis in future years. Certainly
The last of the ten points is the
Boiraine R. Houkom, AsCongress is aware of this and drastic need for education of the
president, American
did
gation Committees are now studying. Let us hope that their reports
gaining
S.
are
U.. S.
merce
American
in
case
ruled
enough
Act" so
aid
promote international business
These
dictator, or especially harbor an
qxiled one in the U. S. One of our
greatest
market
through aggressive sales.
our
Republics. We must
show undue friend¬
never
individual
re¬
we
American metals
was a weakening stand under influence of Britain and West Germany.
must be prepared to offer
service,
technical help, new products or
which they depend for a
lines,
credit,
long-terms, and exlivelihood without putting such
port
insurance
guarantees.
We
handicaps in their way as quotas
and tariffs. This is mostly a mat¬ priced ourselves out of the world
other
firm to sell strategic steel piping consistently and severely
Moscow. This same steel piping from our "Buy-American
^
petroleum,
copper,
of
many
of
law, the president, First Wisconsin Trust
foreign bid did not actually differ Company,
Milwaukee; and coAs in the domestic
market, the
Number eight of the ten points much from the U. S. price. Con- program chairman — Miss Arline
foreign consumer does not always is one with which many are fa- sequently, it would be wise to Laedtke, assistant cashier, First
buy goods that sell at the lowest miliar, namely foreign aid. Let us raise the 6% cost differential lim- National Bank, Oshkosh, Wisconprice. But if our superior quality assume everyone agrees that fi- itation to at least 10% for con- sin: Registration—Mrs. Verna V.
demands higher prices, then we nancial assistance through direct tracts not falling under the na- Van Uxem, West Allis State
Bank,
our total,
if denied to
us, would reduce the U. S. to a
second-rate power. We must let
the
then
absorb
balance
doubt.
any
to $8 billion, or 27% of
whose products,
adverse
out
England has suffered
could
we
of
higher,
region whose
nual trade with the U. S. amounts
and
and
years
store clerks in New York City rei'use i° take Canadian exchange,
which of course they are unaware
is worth more than U. S. currency,
Canadian businessmen and tourists say they dislike coming to our
Lincoln
pany,.
Rochester
Rochester,
Trust
Corn-
New
York;
Treasurer
Miss Laura E. Roth,
president,
Cudahy
State
Bank, Cudahy^ Wisconsin; Secret
other diplomatic
representatives,
tary — Mrs. Gladys C. Kirch ner,
regarding appointments just as
practice
a
restrictive policy
on (3)
straight untied loans. First, country lor this reason alone assistant
cashier,
Milwaukee
important as those made for Eu¬
imports,
then competition would foreign aid allocations should be and consequently prefer spending Western Bank, Milwaukee; Post
rope. We must have better liaison
increase in foreign markets, thus used principally for
maintaining vacations in the Dominion.
Convention Tour —- Miss Lorain®
between the White House and all
encouraging lower prices by our American technical experts and
There is no reason why a con- M. LaChapelle, vice president,
Government
agencies
on
Latin
We
must
choosing
be
selective
more
Ambassadors
our
in
and
vice
_
American
port
a
affairs.
Latin
We
must
American
overseas
sup¬
initiate
"a
seven
of the ten
points,
East-West trade, is the most heated trade issue of our day.
Leading
Market, as so intensely desired
by several <!)f' the Republics. We
must
competitors.
Number
Common
adVocates
considerably
win
a
say
trade
we
war
cannot hope
with
the
ingenuity abroad.
have yet to make
ment to
a
The
an
Russians
aid commit-
foreign country unless
the sending of an efficiency team
to< preceded the start of the venture
Soviet
ccrted promotion campaign cannot be undertaken by the U. S.
Government and foreign trade
associations to educate the American consumer. Certainly, the U. S.
and
stayed long after it was o|>- Office of Information, which has
bloc without greater contact with crating.
Second, the U. S. has done a commendable job in carrychange of students and politicians.
the Communists through increased made
little progress in helping iag our image abroad, could well
We must encourage business it¬
trade.
Opponents, including the underdeveloped nations through put to work some of its funds here
self to improve its public rela¬
tions program in Latin America. Secretary of Commerce, emphasize private investment because o\£ an for this purpose.
that a free enterprise and state outdated foreign tax
system.VVs
The ten points^ analyzed on .
We must, increase our technical
assistance program for the Re¬ trading cannot coexist in inter- a result of the tax credit allowed what's wrong and "How Can We
national commerce. There is no on overseas earnings, we encour- Improve U. S. Foreign Economic
publics.
doubt in my mind that as long as age other countries to raise taxes Policy" underscore the tremendous
Number six of the ten points is
the cold war continues, it is im- by literally saying: You increase need
for American businessmen
a question one hears
nearly every
perative that we exercise some your rates or we will take the to discharge their responsibilities
day now: Does increasing foreign control over trade with
Russia taxes that ordinarily would be- in the
rapidly changing world of
competition to American business and her satellites. The answers
long to you. Lastly, the Developmean we are pricing ourselves out
tociay. Businessmen should take
lie in a happy medium. Washing- ment Loan
Fund in Washington
of world markets? Of
rorrectine Dresent incourse, in¬ ton should continue to free non- should be allocated the bulk of the 1
lead ir> coiiectn g p s
flation and higher labor costs in
strategic items, particularly con- foreign aid appropriation in order efficiencies in our foreign ecothe U. S. have placed us at a dis¬
sumer
goods, from the restricted to grant development loans that nomic policy, thus alleviating the^
tinct disadvantage in selling some
list from time to time.
Greater would stimulate domestic private
of our goods overseas in the face
hardships brought upon our overconsumption by the average Rus- investment. These credits should
of great mass-producing and tech¬
friends
A sound and steadsian
worker
in the
encj would be repayable in both local curren- seas mends, a souna ana steaa
nological advancements made in mean increased desires for the
cies as well as dollars. All foreign £as£
course
as ; recommended
the past few years by Japan and
amenities of
life, thus reducing exchange received by the U. S. surely can bring "world peace
several Western European coun¬
pressure
to
produce
war
ma- should be used to defray Governthrough world trade" while at the
tries, particularly Germany, Italy, terials.
ment .expenses abroad or be ret) maintaining increased
England and France. Moreover,
loaned, to domestic enterprises^ in
our high
costs of financing im¬
Terms Mikoyan's Rropostions
profits for American business.
the borrowing country.
ports and exports compared with
i
Absurd
broader
plan
for
educational
ex¬
,
.
'
other
played
nations
a
role
Criticizes Dumping
certainly
have
But the fact remains trade is a
impeding our two-\yay affair and therefore it is
impractical for the U. S. to step
in
sales abroad.
and
James C. Warren
Anti-Dumping Acts
Number
nine
of
the
ten
C. Warren, vice presianti-dumping legislation, (jen^
a. M. Kidder & Co., Inc.,
which
is
cxtiemely
undeiesti—N
York City passed away July
But we must remember that the
holdings
to
pay
cash
for
our mated in our international trade
an
16% drop in 'U. S. exports last goods. All that we can buy from relations and in the alienation of 6tb at the a^e of ^
62
an
year was a natural reaction to the
the
Russians
are
tin, bauxite, our. Allies. Last year Congress extended illness.
Does
Not
Fear
Gold
Outflow
up commerce on a large scale unless the Kremlin will use its gold
is
points
James
our
..
Kellogg Citizens National
Green Bay, Wisconsin.
Bank,
4
The Commercial urul
of 1947-49)
duction
;Continued
Continental Tobacco
Best
'
rm •>
of
Securities, Inc., New York
City, on July
week
stand at
$26,461,344,573
at $1.25
against $21,387,937,830 for the same week in 1958.
tive summary lor leading mpn<*y centers follows;
Our compara¬
per
common
1 publicly offered
share, 100,000 shares
stock (par ,10c) of
Tobacco
Co.,
Inc.
Continental ,
offering
This
\vas
quickly over¬
subscribed.
organized on
Jan. 15, 1959, under Delaware law.
Its
principal office is at 007
The company was
Twelfth Ave., Huntington,
The
company
engage,
was
of selling
last
Week
•
New
organized
.
.
Thursday, July 9, 1959
.
,j-
Boston
"
out
A
a
strike—continues
the
to
not
would
require
The
still
a
that both sides
magazine said the negotiators are walking a tight
are managing to maintain" a delicate balance that
"a meeting of minds soon that would result in
which would be less than either wanted but
what the White House would like to see."
gests
ment
"Iron
rope
sug¬
an agree¬
just about
late last week and
.
early this
weighing the cost ot a long strike against making a
ate settlement.
The labor side was weighing the future
Dave McDonald and to the union if a strike was called
week
model-
,
cost to
against
small wage or fringe increase along with some other
as retention
of the cost-of-living clause.
"Neither side was ofl the wire, but neither had stumbled to
accepting
a
Age" said that failure of efforts to bring about a peace- •
be a source of embarrassment for President
"He came into the picture expecting a settlement.
that doesn't
come,
Down
be away from the
next move could
Ike's
contract
spite of their best efforts, some mills were running behind
delivery promises.
The contract extension meant that
they could come through with most of the steel on the books for
June shipment—and perhaps some of the tonnage promised for
early July.
In
their
Extension Improves
Chance of
Steel consumers are using
to
and
out
balance
augment
a
^
*
of
high
unable
were
Most mills hope to
deadline
inventories, "Steel" magazine said
the extension of the strike
'
metal working operations, many steer con¬
acquire adequate stocks before July 1.
on carryovers
up
of orders on some steel
products during this two Week extension period. But some mills in
the East and Midwest are too far behind to catch up (three or
four
A Chicago steelmaker expects
weeks).
Automakers
regard the
to clean up its June
*
"
sheets and plates.
orders for all products except
extension
a
as
godsend, but they're
going on the assumption there may be a strike. Although
have accumulated 70 to 90 day steel inventories at their
plants,S some of the automakers (notably Ford and American
Motors) are worried about suppliers' stock. Just before the con¬
still
they
.
tract extension, a carbuilder found that one
had only a 20 day steel inventory.
The
improves the chance of a peaceful sgiUomcni.
The union now will be willing to settle for a much
than it asked for earlier. -Producers continue to
noninflationary contract.
smaller package
press
for
a
Many labor observers believe a sensible solution is available.
It lies in the revision of' certain contract provisions, particularly
Section 2-B. sometimes called the featherbeclding provision.
featherbedding provision is estimated by
potential savings of 7 to 8 cents on hour.
such conditions, steelmakers could offer a modest wage
increase
which would enable a peaceful settleipent.
Elimination
•steelmakers
to
the
of
hold
,
operations last week slipped 4 points to 84% of capacity
(lowest rate since the middle of February), mostly because of
Mill
strikes
and
the
July
holiday.
4
Production
about
was
•.
..
its Detroit assembly
that is expected to
scheduling adjustments,
.
V""
:
Vp-
Iv-h-i
i 'f'C
*
(
-l
• •
?ai\truck
production was programmed at 23,661 units
ended July 4, down
1^% from last week's 27,231 total.
Growing Faster Than in U. S.
are
1*7.8% Above 1958 Week
distributed by the electric light
industry for the, week ended Saturday, July 4, was
estimated at 13,200,000.000 kwh.. according to the Edison Electric
and
power
1
Institute.
For the week
000,000 kwh.
Car
*
'
previous week: but showed a
oik 17.8% above that of the comparable 1958 week.
Loadings 11.2% Above Corresponding 1958
Loading ofrrevehue freight for the
cars.,JUie Association: of American Railroads announced.
increase of 70,448 cars or 11.2% above the correspond¬
ing week in 4958, but: a decrease of 35,100 cars or 4,8% below vthe
corresponding week in 1957(,( •
];
697,6^3
'? (This
was an
.
Loading^ in the week of June 27 were 26 105 cars, or 3.6%
Service centers did
a
15 (when
land-office business from June
began to fear they wouldn't get steel ordered from
the mills) until Friday, June 26.%§ales for the month were 25 to
30% ahead of May month. Business will remain dull for the first
July-as
consumers
take
belated! delivery
of
mill
June
tonnage.
The construction industry will sustain the Summer
"Steel" said.
economy,
It has
just marked up one of the biggest first halves
in history, both in terms of work put in olace and in contracts for
future construction.
The only doubt about the second half is
whether the industry can maintain its pace for new contracts.
already
Send your
in
gift to "CANCER"
in care of your
local post office
on
books
another
guarantee
place.
-v
"Steel's"
33
the
price composite
cents to $36.83
the steel strike
a
below
the
preceding week.
gross
ton
on
as
record
for
Jobs
work
Intercity Truck Tonnage 12.2% Above
put
Lumber
-
.Shipments Were 0.1% Above Production
For June 18 Week
No. 1 heavy melting scrap rose
the market firmed up following
extension.
Steel
Lumber shipments
ber
•
»
The
Output Based
American
Iron
and
on
Steel
83.2% of Capacity
Institute
announced
that
the
operating rate of the steel companies will average *146.7% of steel
capacity for the week beginning July 6. equivalent to 2,357,000
tons of ingot and steel castings (based on average weekly pro¬
of 467 mills reported to the
Trade Barometer were 0.1%
National Lum¬
above production for
In the same week new orders of
the week
these mills were
Unfilled orders of reporting mills amounted
to 41% of stocks* For reporting softwood mills, unfilled orders
were
equivalent to 18 days' production at the current rate, and
gross stocks were equivalent to 41 days' production.
For the year-to-date, shipments of- reporting identical mills
6.2% below production.
.
1958 Week
ended June 27 was 12.2%
ahead of the corresponding week of 1958, the American Trucking
Associations, Mc., announced July 3.
Truck tonnage was 0.8%
ahead of the previous week of this year.
These findings are based on the weekly survey of 34 metro¬
politan areas: conducted by the ATA Research Department.
The
report reflects (tonnage handled at-ov/er 400 truck terminals of
common carriers of general freight, throughout the country.
Intercity' truck tonnage in the week
ended June 27.
AMERICAN CANCER SOCIETY
Week
week ended June 27 totaled
consumers
of
.
549 million
gain of 1,990,-
ended July 4, output decreased cy
kwh. below that of the
2,378,000 ingot tons.
half
'
•
July 4 cut car schedul¬
The amount of electric energy
Under
wildcat
•
Electric Output
c
.
.
replacing steel and other conventional materials
at a faster pace in European cars than they are in U. S.-designed
cars.
But even abroad, acceptance varies from country-to-country,
and is determined by economic conditions, consumer tastes, status
of the plasties industry, and even national temperament.
"Product Engineering," a. McGraw-Hill publication, asked its
overseas editors in seven key countries to make a survey of auto¬
makers in their respective countries and to find out how and why
foreign cars are ahead of Detroit in the amount of plastics being
used.
Foreign designers, they fbund, outstrip- Detroit not only in
pounds of plastic per car but also in*rate of usage.
Plastics in 1959 U. S. cars average 20 pounds per car; in 1959
foreign cars (Britain, Italy, Japan, Germany, U. S S; R., Sweden
and France) about 30 pounds per car.
1
of its fastener suppliers
extension
"Steel" said.
Ward's
Plastics,
to
catch
•'
\
4.'
Plastics Use in Cars Abroad
^
Because
,
keeping
jr. week
Peaceful Steel Settlement
July 6th.
sumers
July
with the model 'year runout plant, Oidmobile's
Lansing, Mich., plant ran only two xlaiys the holiday-shortened
week. Four clays were worked byiStuclcbaker in South Bend, Ind.,
Dodge Main in Detroit, Plymouth-Dodge in Newark, Del., Buick
in Flint, Cadillac in Detroit, Ford.in Dallas, Kansas City and Los*
Angeles, Mercury- in Metucheri, ;N.|:J'., Wayne, Mich., and Los
Angeles and Chevrolet in Baltimore, McL, Bloomfield, N. J.,
Norwood, Ohict Oakland, Calif.,(and Tarry town, N. Y. In
extension provided a much-needed
break for the mills and their customers.
It relieved the pressure
on'those steel users whose inventories were running low and who
would not have received tonnages promised for June delivery.
on
-
the week ended July 4 for
all
Massachusetts,
s
two-week
The
■'(■■>
..
.-
companies."
on
according to Ward's, were Chevrolet's Atlanta, Ga., plant and
Buick-Oldsmobile-Pontiac factories in .Atlanta arid Framingham,
Eisenhower.
steel
"
•
said
Chrysler Corp.'s division Imperial shut down
plant July-1 to begin a model changeover
extend into August.
.4
.
early part of next
ful settlement would
If
weekly production
ing 16% to 107,110 units from earlier week's 127.217, Ward's said.
The first' closeout of 1959 model production took, place when
week."
"Iron
'
Reports
Holiday operations in the week ending
both fear—a point of no return which might erupt into
something not foreseen by either union or management. But since
time is running short and since the President"spoke more than a
there could be a 'break' before the
average
on
.
..
Automotive
15.
October
the point
ago,
,/;%
3 that Chrysler
industry's 1959 model runout with .DeSoto
and Chrysler output closing about July
17 and the sprawling
Plymouth and Dodge sites by July 31. Ford Motor Co. will wind
up its 1959s Aug. 11-26 and GM Corp. Aug. 5-21.
Ward's said Detroit will be the first area to feel the brunt of
.the industry's'model changeover shutdowns, but will also be the
first to snap back, with return to work for many Chrysler Corp.
employees looked for by late August.kit will mark the earliest
1960 model "start up" date for any of the Big Three producers.
Ward's forecast September as a month of furious new model
activity and high level auto employment, barring complications
en
the steel front; .it added that all of the industry's 17 auto
nameplates are scheduled to be in production by Sept. 18 or
shortly thereafter: Last year this- was not accomplished until
concession such
week
week's fore¬
Corp. will lead off the
Age"*continue.d:
"The steel side was busy most of
production is based
1947-1949.
py Aug. 26.
Ward's
will bow
for an agreement that
increase that might touch off
price
steel
Estimated percentage for tnis
the
Changeover to 1960 Car Models Near at Hand
in rapid-fire order, will begin to phase-out
their 1959 assembly several days alter the present July 15 steel
industry contract deadline and will have built the last such car
according to "The Iron
probable,
be
to
of
ago
The auto makers,
of inflation.
another round
but
''Index
for
metalworkine weekly.
Age" said the odds are 7 to 4
wishes of President Eisenhower
of *137.9%
4-41.9
Non-Inflationary Steel Contract
non-inflationary settlement of the steel labor dispute—with¬
"Iron
compared with an actual rate
operating rate (based on 1947-49 weekly
production) was *162.1% and production 2,604,000 ions. A year ago
the actual weekly production was placed at 1.442.900 tons, or
89.8%.
■
■
*•
month
A
Expects
Age," national
as
147,633,670 net tons.
4-25.2
4- tio.2
4-41.9
$14,584,143,427 $11,652.699,223
1,412,148,724
1.044.273,471
1,296,000,000
913,000,000
882,641,867
621,938,806
,
capacity and 2.215,000 tons a week ago. "
Actual output for the week beginning June 29. 1559 was equal
78.2°% of the utilization ol the Jan. I, 1959 annual capacity of
cast is 83.2%.
7c
1958
1959
Ending July 4-
Chicago .—'
Philadelphia
to
cigarettes by mail.
Our preliminary totals
year.
York
W. Va.
primarily, in the business
to
The State of Trade and Industry
offrg. Oversubscribed
of
Financial Chronicle
(134)
34
Volume
190
Number 5862
The Commercial and, Financial Chionicle
(135)
2.0%
were
above
duction.
production; neW orders
2.7%
were
above pro¬
bonds, underwritings, and unlisted
■v
stocks
Compared with the previous week ended June 20, production
reporting mills was 0.5% above; shipments were 2.1% above,
of
orders
new
5.8% above. Compared with the corresponding
production of reporting mills was 7.8% above; ship¬
,2.5% below; and new orders were 0.7% above.
Business Failures Continue Decline
Commercial and industrial failures continued down to 244 in
the week ended July 2 from, 256 in the
preceding week, reported
Dun & Bradstreet, Inc. At the lowest level since the
beginning of
this year, casualties were
moderately below the 292 in the compa¬
rable week of last
year, but they exceeded the 190 in 1957. Also,
.
17%
•some
"toll
businesses failed than in prewar
more
208.
was
'
.
Liabilities
1939 when the
;
of
$5,000 or more were incurred by 215 of the
as against 223 in the
previous week and 258 a year
ago.
Small casualties, those involving liabilities under $5,000,
dipped to 29 from 33 a week earlier and 34,last year. Nineteen of
.
the
concerns failing had liabilities in
pared with 25 in the preceding week.
excess
of
$100,000,
com¬
as
Casualties fell off in wholesaling, down to 22 from
32, in con¬
struction, down to 31 from 39, and in manufacturing where the toll
dipped to 40 from 46. Contrasting increases occurred among re.tailers, up to 127 from 122, and among- service businesses, up to
.24 from 17. Mortality remained below 1958
levels, however, in all
groups
exempt wholesaling and commercial service.
Most of the week's decline
appeared in the East North Central
States where casualties dropped to 34 from 58. Four other
regions
-reported
slight
declines; including the Middle Atlantic States0
dipped to 91 from 99. On the other hand, failures 44
previous'week in four regions, with the South Atlan¬
tic States turning up to 24 from 16 and the Pacific to 64 from 52.
'where the toll
from the
rose
In
the
of
seven
the most
nine
regions, fewer
failed
concerns
than
a
year
noticeable
decline was in the East North Central
While South Atlantic casualties held even with
1958, the
toll in the Pacific States exceeded last year's level.
ago;
•States.
Wholesale
Food
Price
Wholesale Food
Index
Down
Moderately
Price
Index, compiled by Dun & Bradstreet, Inc. moved moderately lower this week to stand at $6.08 on
June 39, clown 0.5% f rom the
$6.11 of the prior week. It compared
with $6.66 on the
corresponding date a year ago for a decrease
-of 3.7%.
'
"
V 1
v;'
.
Higher in wholesale price this week were flour, oats,
milk, and
eggs. Lower in cost were rye, hams, bellies,
lard, butter, cottonseed
oil,
cocoa,
represents the
foodstuffs and
raw
friend
a
to
the
meats
total
sum
in
of the
price
general 'use.
per
It is not
pound of
a
was
moderate
a
rise
in
the
general commodity price
grains, flour, hogs, steers
scrap offsetting declines in lambs, rubber and tin.
The
Daily Wholesale Commodity Price Index/compiled
by Dun &
•Bradstreet, Inc., climbed to 273.37 (1930-32 = 100) on July 6 from
level this week, with
increases in
some
and steel
week
earlier, but remained below the 279.11 of the
isponding date
year ago.
a
Wheat prices
finished
picked
moderately
>
:*
both domestic and export buying expanded sub¬
Although trading in rye was steady, prices moved frac¬
tionally lower.
Supplies of corn moved up during the week, but domestic and
-export purchases remained at the
levels
of
week
a
prices slipped somewhat.
earlie^; corn
There was a slight rise in oats prices due
reports of some crop damage, light offerings and increased buy¬
ing. Moderate declines in soybeans prices occurred and transac¬
tions lagged behind the prior week.
to
.
,
r
There was a noticeable rise in flour
prices as trading picked
and stocks in some markets were limited; export buying of
flour was sluggish.
Purchases of rice were limited during the
-week, but prices were unchanged.
~
V
Sugar wholesalers reported little change in sugar trading from
the prior week, and prices were
steady. Sugar deliveries in the
up
•
ended
June
27
to
came
172,162 in the prior week and
about
179,850 tons, compared with
185,959 in the comparable week a
ago; deliveries for the year to date
against 4,042,000 in the similar period last
year
were
4,199,000
tons, as
most
com¬
pared with 1,153 in the similar 1958
period, there was a slight
prices, and trading was down somewhat.
Hog receipts slipped somewhat in Chicago and buying re-
•
-mained at
,
higher.
cocoa
the
level
Prices
on
of
the
steers
prior week; hog prices were slightly
fractionally as trading expanded
rose
moderately. There was a slight'decline in lamb prices and trad¬
ing, and receipts were light.
Cotton
prices
the New York Cotton Exchange rose slightly,
but trading was close to the prior week, United States
exports of
cotton for the week ended
Monday were estimated at 56,000 bales,
on
compared with 40,000 a week earlier
1958 period. For the current season
to
about 2,553,000 bales,
sponding period last year.
as
and
108,000
in
the similar
Commodity Exchange, Inc. reported that trading volume for
the fiscal six months from Dec.
1, 1958 to May 31, 1959 was 163%
.higher than Ve volume in the corresponding
period of 1957-58.
"Comex" stated
19,741 in the same
During the first half of the current fiscal year,
that 53,065 contracts were
traded, compared with
six
months of
any
The total of 53,065 contracts traded is the
largest recorded for
six month neriod
War II.
I
direct
no
his/
if offers
a
introduction.
Note
"Dear Mr.
Use
dignified.
Prospect:
Letter
be
"Tax
on
.Another, effective
that
service and that it sells
but also is reserved and
havp just
stead
the telephone in
up
of
is
as
to
"In
some
followed
recently used by
had
Exempts"
aproach
was
salesman who
a
good contacts but who
some
had
entered
ness
from another field of
the investment busi¬
mutual
salesman
them
for
this
pleased to cooperate with you,
.
the
"In addition to the negotiation
making their ac-'
bigger the man for the purchase and stile of 'whole
less the snob. The bigger the
businesses,' we specialize in the
opportunity
quaintance.
the
grateful
a
indebted
the
man
of
The
he
more
will
admiret
a
personalized
salesman who carries himself with
ment
dignity, and who approaches him
with confidence and specific ideas
ice
be of interest to him.
may
Although
handling
accounts, with
a
of
invest¬
broad
in securities, traded
serv¬
to
our
reliability
I will telephone
in the next few days and
hope to have the privilege of dis¬
cussing some of our offerings."
you
mailing brought
all the
major stock exchanges, municipal
ac¬
quaintances in this area, a-nd I will
be happy to give you their names
if you desire any infoimation as
This
on
the
previous
year.
passenger
sharply
previous record
the second
*~alf of
In the individual
was
the
49,991 contracts which changed hands
1955
fiscal year.
commodities,
copper and lead futures showed
versus
15%
a
sponse in return cards.
The
Low ever, was
handpicked.
re¬
list,
matched
cars
those
o'f
the
total
dollar
volume
of
prior week, and remained
retail
trade
the
in
week
ended
July was 3 to 7% higher than a year ago, according to
spot estimates collected by Dun & Bradstreet, Inc. Regional esti¬
mates varied from the comparable 1958 levels by the
following
percentages: West North Central +6 to -f 10; East North Central
and Pacific Coast -j-4 to 4-8; Mountain 4-8 to -f7; Middle Atlantic
and
South Atlantic
4-2 to 4-6; New England and West South
Central —1 to +3; East South Central —2 to -\~2.
Purchases of women's cotton dresses, sportswear, and fashion
accessories were sustained at the high levels of the prior week,
over-all sales of women's apparel
and
noticeably exceeded a year
While interest in men's apparel fell from the prior Father's
Day week, sales of sports shirts and furnishings showed marked
year-to-year gains. The call for straw hats and lightweight suits
was close to a year ago. Volume in children's Summer merchandise
ago.
Sales
from both the
prior week and a year ago.
helped volume in Summer m.etal
promotions
tables and chairs climb
1958
there
week;
over
both
a
week earlier and
outdoor
the similar
slight increases over a year ago in up¬
goods. Despite cool weather in some areas,
the buying of air conditioners and fans Remained appreciably over
last year and interest in television sets, laundry
equipment, and
were
holstered lines and
dishwashers
occurred in
ease
slightly.
A moderate rise over, last year
floor coverings and draperies, while volume in linens
was
To Penn.
University
PHILADELPHIA, Pa.
— The
has
gift which will defray
a
substantial part of the cost of
erecting a new million, dollar dor¬
University
received
uate
over a year ago.
The
Mayer Makes Gift
~~
of
Pennsylvania
a
mitory for students in the Grad¬
Moderately Up Over Year Ago
consumer
this
up
/Division
of
the
School of Finance and
it
has
dent
been
Wharton
Commerce,
announced
Gaylord
by Presi¬
P. Harnwell.
According to Dr. Harnwell the
new
building will be named in
honor of
the
donoi', Harold C,
Mayer, senior partner in the NewYork
investment banking firm of
Bear, Stearns & Co.
Mr. Mayer
was
graduated from the Wharton
School with the Class of 1915.
His gift will finance the Uni¬
versity's equity in the building,
The remainder of the cost will be
met
through
which
rentals, it
The
was
new
long-term
a
be
can
amortized
loan
out
donnitory, which will
accommodate
appi*oximately
students, will be constructed
site at the northeast
corner
and Spruce Streets.
signed by
Pullinger,
architects
The
the
125
on
Grocers reported
of
and
Eshbach,
Bruder,
and engineers.
Graduate
of
Division
a
of
current
750
and
some
in
dairy
products, while the call for fresh meat, poultry, and baked goods
was sluggish.
Nationwide Department Store Sales Up 7%
For June 27 Week
Department
stores
sales
on
a
country-wide
basis
as
Your
taken
froifi the Federal Reserve Board's Index for the week ended June
27, Increased 7% above the like period last year. In the preceding
an increase of 22% was reported. For the four
weeks ended June 27, a gain of 10% was registei-ecl and for Jan. 1
to June 27 a 9% increase was noted.
RED
week, for June 20,
According
in
increase
New
of
to
the
York
1%
Federal Reserve
City for the week
from
that
of
the
like
System
department
ended June 27
period
store
showed
an
In the
preceding week, June 20, a 14% gain was reported, June 6 was
10% higher than the 1958 week. June 13 showed no change.
Four
weeks ending June 27 a 6% gain over 1958 was recorded and Jan. 1
to June 27 showed
a
last year.
4% increase.
)
the
en¬
students, repre¬
senting 25 countries and 250 un¬
dergraduate institutions.
moderate increases from the prior week
sales of frozen foods, canned fish, fresh produce,
a
of 39th
It will be de¬
firni
Stevens
Wharton School has
rollment
of
pointed out.
down somewhat.
was
sales
since/resumption of trading after World
period,
buying slackened in the post-Father's
Day week from the prior week, over-all retail trade moderately
exceeded that of a year ago
The most noticeable year-to-year
increases occurred in women's Summer apparel, outdoor
furniture,
and air conditioners. Scattered reports indicate that sales of new
■'
.
,
in
should
activity.
rapidly growing area,
He wi'ote these
people a shoid note
investment opportunities are oc¬
cases
and asked for an
appoint¬
mentioning
that
the
firm
he was
ment and have geen
granted an casionally available that are ex¬ with had
specialized in tax-free
interview.
The
man
who
has ceptional. Certain of these 'special
situations' have resulted in sub¬ municipal bonds for many years.
something valuable to offer in the
He enclosed a generalized
stantial profit
pam¬
for some of our
way of research, contacts, ideas,
phlet explaining why people
and securities should never hesi¬ more important clients.
should own municipals.
He also
tate to. place himself before the
"For this reason I would like to
enclosed
a
chart
showing tax
largest and most substantial in¬ telephone you in the next few
exempt yields versus the equiva¬
vestors in his
community. Those days to ask you for an opportuni¬ lent yields from taxable
securitieswho have established
connections, ty to meet with you and to make He asked for the
..privilege of
and who do not wish to
enlarge your acquaintance. We may have
placing the prospect's name on the
their contacts in the investment
contacts in this community that firm's
mailing list: and enclosed a.
business, will tell you so. There our long established business con¬
postage paid, return card for this
are many others that will be
only nections have developed that purpose. His last
pai'agi'aph was
too pleased to msec with
you if
someday may be of value to you. an example of confidence
building
your house has
stature and you
If we can be of any service
in "soft sell."
It read as follows:
approach them from strength in¬ this connection we would be "I
know that we have
picked
through June 29 exports came
against 5.248,000 during the corre¬
Mid-Year Commodity Trading Volume
Up 168%
*
accessible.
advanced
year.
January to May imports totaled 1,288 million* pounds,
-decline in
the
Many of these sup¬
difficult people to reach
posedly
are
Coffee prices moved up
appreciably, reflecting increased trad¬
ing.
has
profession.
Retail Trade
v
•-
appreciably at the end of the week
higher than the prior week. Offerings
up
stantially.
;week
able in opening the door to the
larger account where I have had
obstacle
an
who
proper mental attitude toward
.
corre-
light and
.were
salesman
8,055 contracts (101,375 tons)
in the first half of 1957-1953. Lead showed
2,660 contracts (79,800
tons), against 599 (17,970 tons); rubber increased 6%, or 3,093
contracts (80,930 long tons), compared with 7,607 (76,070 long
tons); hides were up 90%, or 3,294 contracts (131,760,000 lbs.)
vei'sus 1,733
(69,320,000 lbs.); zinc jumped 120%, or 3,183 contracts
(95,490 tons), against 1,442, contracts (43,230 tons).
Commodity Price Index Up
Moderately in Latest Week
and
This should
great
1958-1959 six-month
Wholesale
a
too
the largest increase in turnover, with both
jumping 344%. Trading
in the red metal totaled 35,782 contracts
(894,550 tons) in the
cost-of-
•
i276.87
client.
or
not present
which
living index. Its chief' function is to show the general trend of
; food -.prices at the wholesale level. '« i?4 / U4 4K'
There
letter
by a telephone call within three
days if it is sent to a post office
out
of
Meeting The Important Client
your city.
Within your
mailing area the- morning oi# the
There are times when it is not
Prestige Approach
third day after you make
your
possible to meet investment pros¬
Following is a sample letter that mailing is about the right time to
pects through the recommendation'
I have used which has been valu¬ follow up.
of
steers, and hogs.
The Index
'
31
This
»'
who
The
bonds.
By JOHN DUTTON
;
week's failures
and
'•Yours very truly,
Securities Salesman's Corner
were
week in 1958,
ments were
35
CROSS
must carry
on!
„
The Commercial and Financial Chronicle
36
Urges Steel Industry to
Wage-Price Spiral
Arrest
.
Thursday, July 9, 1959
.
While this marked a peak:
have not been so paralyzing as the Federal Reserve System for year.
popularly supposed: over-all pro- permitting credit to tighten.
It for the postwar years, it was be¬
duction'dipped less than 5% from now becomes clear that these rep- low the comparable ratio of three
prestrike highs. After each of the resented
reasoned and correct decades earlier, when imports
strikes, the, economy rebounded appraisals of the developing "situa- represented 8.2 % of domestic pro¬
swiftJy. New production records tioh.
Symptomatically, the con- duction.
were set within a, few months. In
sumer price index is tending to
increases that have
the business downturn is
cited by First National City Bank in a strong appeal to labor,
business and government to restrain upward climb in wages,
prices and spending, respectively. Turning specifically to the
crucial precursive significance of steel, the Bank fears a wage
rise here would knock the main prop holding out against the
danger of inflation from the wage-cost side.
The
ominous
of non-steel
pattern
situati&n the forces
pushed the economy
to its present high level appear too
strong to be reversed either by a
strike or by orderly liquidation
wage
the
\
r.
.
,
The July issue oi
„
p/r
t
n
o
rt
r,
i
,
have
of excess steel stocks.
'o"
*
*
r
7
*
Labor Sta-
-
,
,
.
strong and nearly unam-
The
advance • in activity during
mous
bai£ 0f
j.jrs^
America
1959 jias ]ecj £0
tistics. However, .37%
of the wjcjCgprea(j expectation that the
workers won boosts oi 11 cents
u' e
continue. The mosndicates why it is so critically or more.
Particularly substantial mentuni f01, a renewed rise once
important for a pattern-setter i"n wage increases have .occurred this
S£eej settlement is reached
is
<ruch a major industry as steel to spring in construction—an indus- cer£ajn]y there but the advance is
,fret the trend for arresting wage- try booming in many areas, En- l|11 jjp^e]v to be so steep. While inPrice spiral ing.
gineering. N.ear.s
1'^01^ ventory accumulation will go on,
The
Letter points out
the that recent wage contracts 111
extra stimulus which comes
Letter, published by the First National City Bank of New York,
which may be
NICB
difficult to control and impossible
seven
■L--'
-
phones,
television
sets,
motor¬
cycles, and washing machines—re¬
veals that America's per capita
earnings
of
new
a
StccUvoi
kc s
$3.10 per
contract are agieec
w
hour
billion pumped into the economy
1959 Federal deficit
a more nearly bal-
fiscal
will be
There is still room
bejoi>e we reach the limits of man_
anced budget.
aged
ngrecd to on June 27 as mills were
beginning to cool their furnaces,
"The
steel
wage
negotiations
have
been
undei -way for two
Skeptics
may
months
already.
doubt that another two weeks will
glass employes averaged more. Be- closer to those limits.
fore the negotiations began, David ""Risks of price inflation reside
McDonald, President of the United
Steel workers, made it clear that in every period of business exthe union aimed to get the largest pansion. It was not many months
increase in wages and fringe bene- ago -that criticisms were being
fits in the union's history, and a heard vol the President for advo-
reconcile,the differences.
But no
-
Among factory workers
only
Economic Advisers, poihted out:
'Present labor costs have been ris]ng at a rate not unlike increases
realljVvants
passed only in the case of motor¬
While motorcycles are a
primary means of transportation
abroad, the automobile performs
cycles.
this function
in periods in which we have had
mitpriale
inrfn«trial
anri
_
__
^
business in advancing prices, on
the part of government in programming expenditures, and on
the part of the Federal Reserve 111
the monetary vbase.'
a
steel case is not
the issue in the
steel
whether
other wages,
cpreading through the industries
wage
on
«tnd stepping up costs everywhere
is the greater danger.
die saving in labor costs is wiped
and nothing is left as a return on added capital investment,
There will be more job opportun-
Board, com- mately
rise, out,
inflationary steel
The effect of an
patte/n
prices
Important
aluminum,
ments: "In the
-
ities in the high-paid steel indus-
try if the companies can hold
down prices and compete more
.
.
e
on
w e
virtually
die only ma-
,
.
inc air
q.
.
jor
two
-
Nations, like individuals, devote
a
power
__
TT
"'
penditures to food, beverages* and
tobacco as they raise their level
Com-
Y
.
•
■
,
77
,
„
_
ExP°rf Level Down From '48
.Last year, roughly 19% of the
non-Communist
world's
exports
in
copper,
effectively with foreign producers with large, undamaged industrial came from the U. S. This was only
rubber, and meat packing are nbvF'and substitute materials.
capacity. The need to repair the slightly above America's world
-up for negotiation. The fresh im:
T
.
B
, TT '
devastation of war accented the export position in 1928, and reprepulse that 'a substantial boost in
Hie
importance of the United States.
sented a sharp drop from 1948
f?teel wages would give to infla"Even since January, steel users*,
"More recently, our relationship when U. S. exports, inflated by
tionary pressures from the side of have been building inventories as
•employment
costs
is the
chief protection
against
a
possible
res^ °* ttm
•contracts
■,
Inventory Build-Up
world has taken heavy shipments to a
shared throughout the
husiness
community
and
also
•among responsible leaders in gov-
Aybrry,
-ernment.
■k
Wage
Patterns of 1959
Eisenhower, though
-opposing direct government intervention, has repeatedly warned
sides
of
the
dangers
of
an
might greatly
■aggravate the spiral of wage and
price increases.
This spiral was
aiot baited even by the recession,
agreement
which
iDuring the nine months
xose
of busi-
contraction, industrial
Hiess
on
2iour.
wages
the average by 4 cent? per
Since
the
activity
stocks
beginning of the
upturn in April 1958, they
arisen anothei 12 cents.
have
During the fiist quarter of this
.year,
industries but
also to nearly double stocks of
raw and semi-finished steel in the
hands of users. Steel inventories
at midyear are estimated at the
equivalent of 20 to 22 million ingot
tons—roughly two months' production. If the industry 1 achieves
a
peaceful settlement," a greater
than usual summer letup in steel
in heavy
activity
.
"President
iboth
million tons of steel ingots and
castings produced during the first
hall of 1959 was not only sufficient to supply the stosdily risin^
the pattern of wage increases
indicated
is
are
these
"SucfTa letup would amount to
no
in
more
an
a
surface distortion
expanding economy.
strike,
cause
than
on
the
liquidation.
2hour, accoiding to the tabulations
we
have had,
level
material
penditures
A steel
The
chart study
finds
that
production
in
goods-hun-
of
the
world
has
almost one-fourth of the woild
the
these
items
among
in
compared
the
study.
as
Expenditures for services, such
transportation, communication,
personal care, and recreation take
an
increasing part of a family's
its real income rises.
the countries compared,
the U, S. ranks first in the'per¬
budget
as
Among
centage allocated to transportation
and communication, but Belgium
show higher percent¬
and France
In
non
in, personal
comparison with 18 leading
nations oi the
a
Communist
-
world, the
United
the
S.
recreation expenditures.
and
care
U.
the
than
ages
U. S. is surpassed by
Kingdom and Aus¬
tralia in the amount of food calo¬
daily for each indi¬
place with
the Netherlands in the number of
ries available
vidual and ties for 11th
of food
consumed per
Such a comparison based
solely
on
calories and weight
makes no allowance, however, for
the variety of foods on the'mar¬
pounds
ket, their availability at all times
of the year, and the form in which
they appear at the retail shops.
The
Gap Narrows
balance, while
America's
general level of living leads the
world, it is significant that the
U. S. is well down the list of na¬
On
a
comparison of the rate
increase
of
tion.
U.
personal
of
consump¬
During the 1948-53 period,
S.-ranked approximately
_
The NI.CB study notes, however,
that because America's domestic
market is so huge only 6% of
her total output oi goods ancl
services is destined for overseas
markets,.and foieign tiade is rraditionally legaided as a somewhat
total
secondary " element incertain
the n n
U. S. economy.
tions,
by
For certai
trade is virtually a
vival.
na"
international
contrast,
matter of sur¬
In the Netherlands, for ex¬
ample, nearly half of total output
intended
is
Belgium,
for
overseas
sale;
in
the. corresponding por-
America's
imports
of
foreign
dropped goods came to 6.5% of her domes-
in 1952 and 1956, sharply since 1948, when most of tic
commodity
production
midway among the major nations
in this respect.
crease
tion
rate
the
1957,
America's
of
in¬
in per capita real consuqip-
had slowed down,
tually
while
other countries
all
Canada were,
increasing at
vir¬
except
a
fast¬
rate.
er
s
Between 1953 and
A portion of the foreign gains
can
attributed
be
recovery
NICB
be
to
continued
from World War •II, the
notes,
viewed
but
as
an
partv must
additional
also
im¬
provement that has narrowed the
the tion is more than one-third.
S. position in relation to the
However, the strikes rest
to
countries
the
vestments in foreign countries,
^ our predominant world role
has recededToday we face a
growing number of foreign ecohomies that are strong, vigorous,
and able to Produce sufficiently
themselves — and even more,
large part, through the aid and
encouragement, finanbiak and
otherwise, that we have extended,
one nation after another has been
added 1° the roster of sturdy comPetltors for worid markets—and
our own-'
Drop in Manufacturing Position
in
living
of
world, devote the smallest per¬
centage of their consumption ex¬
the
our international ■ trade and in-
other hand, would manufacturing
as
living, the NICB notes.
Con¬
in
the
U.
S., generally
to
have
the
highest
sumers
conceded
tions in
hasty, unbalanced inventory U.
•clustered aiound 7 to 9 cents-per
as
worked down..
of
new aspect. Our domestic gry world not yet producing suteconomy has expanded; so have ficiently for itself, accounted for
record-breaking -65 011 a
The
strike.
smaller portion of consumer ex¬
fifths of the world .capita.
output outside the
postwar munist bloc.
early
years,
were
mining
for
Food and Drink
European Economies
4
Share, Spent Here
Smaller
Export Decline Laid to Strong
*;oley
in
levels
served to impress upon
'
in America.
nations
Several
approach U. S.
specific items; for ex¬
ample, people in Sweden have al¬
most
as
many
telephones
per
capita as Americans, while Bel¬
a boom leading
gium and Denmark are virtually
lapse; a squeeze on profits will on a par with the U. S. in tele¬
lead directly into contraction in vision sets. Hbwever, there is no
uniformity in the overall level of
consumer
durables ownership
•••
,
.
»
re- abroad.
Belgium, a leader in TV
straint: on the part of organized ownership among foreign nations,
labor in seeking bigger wages and is well down the list in owhership
fringe benefits, 011 the part of of refrigerators.
either price increases or a sub-
negotiations
monuis'
two
items is sur¬
ownership of these
strike. And the widespread union advertising eating a balanced budget and of adding to
have campaign implied that steelworkthe union ers were seeking a settlement
—and the public at large — the which would give them a billion
firmness of the resistance of the dollars more to spend,
companies to more wage - price
"The steel companies have been
spiraling.
'
adamant on resisting further ad"The steel industry is having a ditions to employment costs.
Iii
Rebuilding of war devastated capacity and recovery abroad,
/mod year and it would seem to June, they suggested that if the
greatly assisted by U. S. A., is held responsible for changing
the casual observer that the com- union agreed to certain changes
our predominant post-World War II share of world trade to a
panics should be willing to nego- in working rules, the savings thus
tiate a generous settlement.
But generated might provide the
level slightly above the relative position enjoyed in 1928. This
a
wage contract runs for an ex- means for future wage increases,
finding by Industrial Conference Board study notes the expan¬
tended period.
The last one re- The union summarily rejected this
sion, however, of our trade and foreign investments as well
quired wage boosts in a depressed proposal.
as growth of sturdy competitors for the world's markets.
year, 1953. American steel wages
"One point figuring in the steel
arc
among the highest in U.
S. wage negotiations is the idea that,
The
economic
industry, and far and away the since a wage spiral seems already
implications of industrial Europe had not yet reHighest steel wages in the world, under
way,
the steel workers America's changing position in covered from the devastation of
Jfhe competitive power of our ex- should get their share.
On the world trade are explored in a war, and today stands at a level
ports is at stake, as well as the other side is the tremendous im- chart study prepared by the Na- only slightly above the relative
confidence of the world
in the portancc of steel as a patterntional
Indus- position held in 1928.
Furtherdollar.
Foreign observers, who setter.
If wage-price spiraling is
trial
Confer- more, the shrinkage in America's
fear that our economy may be to be arrested, a major industry
e 11 c e
Board share oi manufacturing output has
caught in a nonstop inflationary must set the example,
and
currently accelerated since 1953, when most
cycle, look to the steel settlement,
"Another point made by the
being released. European nations had- regained
along with the Federal
budget, union is the growth of productivIn announc- their industrial position,
Federal
debt management,
and ity in the industry. Yet this has
ing the study,
America's share of mining promonetary policy, as a significant been the fruit of large capital in-^
John
S.
Sin- duction was also at a high point
test of our determination and abil- vestment in more efficient equip-'
elair,
Presi- in 1948. Despite its rather drastic
dent of
ity to resist inflationary pressures, ment directed
at saving labor
T h e shrinkage in the past 10 years, the
Conference U. S. today accounts for approxi"It should be understood that costs.
If wages consume the gain
one
refrigerators,
cars,
capital outlays of business and in
business activity in general.
ilat capacity,
P°wer, materials,
aiid industrial
The critical needs are for
but each advance
carries
aver-
ings
avu
111 April.
The extension oi the old
contract
through
July
14
was
upon.
(
"Speaking before the New York
State Bankers Association last
week, Raymond J Saulnier, Chairroan Of the President's Council of
the
^
tele¬
motor
postponed
eepted
President
Jfiisenhowei s cieases aveiaging 11.0 oems
suggestion that they continue to 1960. These raises aie on top ot
bargain without interruption un- wage levels which are already
til all of the terms and conditions high
A comparison of
durables—radios,
study.
consumer
0U£
1—
1
in
to halt without a painful shake-
.
threatened
World
Leads
probe into new high ground. It
Consumer Goods
is time to recognize, as reserves
In ownership of consumer dur¬
of idle resources are drawn down,
that there is need for restraint all able goods the U. S. ranks sub¬
around to keep'excesses of spend- stantially above every other na¬
ing power from fostering another tion in the world, according to the
wage-price spiral
v
Disciplined Prosperity
C)n
t T
T>
Monthly Bank .by the U. S. Bureau of
present
which
already occurred during and since
as
.
(136)
last
gap
in consumption levels between
the U.
S.
and most
of the world.
other nations
Number 5862
190
Volume
.
.
The Commercial and Financial Chronicle
.
(137)
The
indications of Current
Business Activity
week
Latest
AMERICAN
IRON
Indicated Steel
STEEL
AND
AMERICAN
INSTITUTE:
PETROLEUM
Crude oil and
(net
tons)—
July 11
output— daily average
(bbls.)—
average
(bbls.)—-.-.
STATES—DUN
INC.—Month of May
BUSINESS
*7.836,000
8.000.000
28.584,000
28,501,000
27,061,000
1.761,000
1,864,000
1,700,000
1,649,000
June 26
12,731.000
12,372,000
11,229,000
6,780,000
0,310,000
GiGb'3,000
6,625,000
26
198.271,000
200,624.009
203,140,000
186,436,000
26
27,213,000
26,600,000
24,030,000
23,355.000
26
115,991,000
111,930,000
97,544,000
103,353.000
June 26
53,840,000
54.439,000
54,669,000
63,697,000
26
-——
*
—_—_
697,633
723,738
687,726
627,185
588,643
592,001
579.559
522,387*
%
Public
construction
—
State and municipal
%
Federal
'
All
——
177,900,000
103.425,000
—July
2
241,200,000
137,800,000
362,838.000
Rent
Gas
2
177,200,000
201.800.0CO
104,300,000
192,504.000
2
57,400,000
39.400,000
33,500,000
170,334,000
(tons)——
Pennsylvania anthracite
DEPARTMENT STORE SALES
SYSTEM—1947-49
———
*9.335.000
470.000
400,000
8.150,000
8.887.000
360,000
562,000
•
100——
=
—June 27
118
H3
122
FAILURES
INDUSTRIAL)
AND
4
12,200,000
13.749,000
-13,023,000
11,210,000
2
244
256
314
292
DUN
—
—
COMPOSITE
(per gross ton)
——-
6.196c
6.196c
6.196c
5.967c
————June 30
$66.41
366.41
S66.41
S66.49
"Scrap steel (per gross .ton);--—.-;———2-June.:;o
METAL
PRICES
Electrolytic
(E.
31.
&
J.
(St. Louis)
(delivered)
Zinc. (East St.
Aluminum
Straits
r.
$37,17
LoUis)
BOND
—
—
at—™..—
31.100c
31.150c
25.000c
July
26.700c
27.075c
29.400c
24.175c
.July
12,000c
12.000c
12.000c
11.000c
PRICES
July
11.800c
11.800c
11.800c
10.800c
—July
11.500c
11.500c
11.500c
10.500c
July
11.000c
at_;
——■
July
July
.
——
DAILY
11.000c
^
_IZ-I-IZZI"Zr"""
I
-
-
;
.
.
ZZZZ2-.ZZZ11'
Z~yZ*j"rH"
care
Personal;
care
■
cotton
seed
and
-
cotton
of
seed
——..July
11.000c
10.000c
1
24.700c
24.700c
24.700c
24.000c
1
103.125c
100.375c
"104,625c
94.125c
Average corporate———----^
—July
:
—
82.88
7
85.98
7
Received
mills
at
Crushed
(tons).
-
(tons)
Cake and
May
31.:
Meal—
Sfbcks
(tons)
Produced
May
(tons)
(tons)
Shipped
31...
—
!
-Y-
tl
—
ZZZZ
.•„
....
"
..
.
~"
Group
Utilities
86.38
96.23
89.78
101.97
88.27
99.36
85,98
86.11
96.07
Stocks
81.66
81.66
81.90
88.67
Produced
MOODY'S BOND YIELD DAILY
July
92.06
,
85.07
85.46
85.07
85.33
97.62
37.99
87.99
88.40
99.36
July
7
4.21
4.16
4.17
3.08
Durables
7
4.71
4.71
4.68
3.99
Nondurable,s
July
—
4.47
'
4.59
4.73
—
MOODY'S
COMMODITY
Shipped
—
—
1—
,
5.05
4.70
5.03
4.51
7
4.79
4.78
4.75
'4.27
7
4.78
4.78
4.76
3.90
July
7
4.56
4.56
4.53
July
7
388.0
.3.85.9
389.8
...—
Month
-
Production
(tons)——.
(tons)
—————June27
Percentage of .activity.
Unfilled
orders
>6,242
(tons)
—
—_—
.
!3,G57
350,614
327,830
___June 27
93
98
——June 27
•8,629
495,750
—-
end of period--
at
295,404
326,467
•
AVERAGE
ROUND-LOT
—
100
—
1
-
TRANSACTIONS
FOR
ACCOUNT
July
—
.110.58
3
110.29
-
;—-
..
89
356,484
Total
sales
2.213,000
2,828,290
1.706,210
437,730
377,580
457,210
356,480
■
/
Short
sales
•Other
sales
—
—
-
—
—June 12
2.433,870
394.570
389,850
558,870
429,240
50,300
42,200
57,200
39,500
—
—
-June 12
——
June 12
Total salesv
2—2—2-2^.2.^^22.-Juue lY)
Other transactions initiated on the floor—
*
v
Total purchases.
—1—
June 12
Short sales —
——2—
June 12
-——
—
,
————
Other sales
22—
——
June 12
Total sales
——^—2
——2—June 12
transactions for account of members—
Total purchases
—_2
•
June 12
Short sales
2—
June 12
——
393,500
458,220
446,100
385,260
443,800
500,420
503,300
424,760
731,272
654,933
930,640
(E.
&
—
M.
J.
'Other
sales
————-
Total sales
—
—
——
(per
DEALERS
EXCHANGE
Odd-lot
sales
Number
of
AND
SPECIALISTS
SECURITIES
by dealers
shares
ON
EXCHANGE
(customers'
N.
Zinc
.
prompt
(per
985,500
779,882
4,317,800
2,686,230
574,560
526,960
622,520
565,300
June 12
3,374,371
3,200,416
2,286,182
June 12
3,948,931
3,727,376
3,731,100
4,353,620
2,851,482
(per
Dollar
value
—.—
—
——.———
—
-
Ghort
"Other
sales
„
-
...
.—.
—
-June 12
13,985
12,170
7,176
10,219
1,477,403
1,528,259
1,839,767
1,175,424
—-June 12
"$77,846,094
$83,459,923
$94,090,387
$51,.758,079
378,240
400,520
488,630
408,580
sales
TOTAL «OUND-LOT
STOCK
June 12
*«
SALES ON
shares-
of
THE N.
Y.
—Juno 12
130.0
117.8
117.7-
•116.6
128.4
128.2*
127.2
128.0
143.7
128.5
*6,300
5,001
*323,500
179,741
405,000
340,786
170,500
fl 66,400
182,734
85,900
*151,500
01,357
81,800
*124,900
88,399
83,400
104,900
128,501
44,100
*76,300
45,564
65,600
*82,000
48,101
211,900
249,800
354,870
long
24.689c
28.214c
23.670c
£236.206
£194.613
£230.017
£236.575
£196.105
12.000c
11.897c
11.224c
11.800c
11.705c
11.024c
ton-)—/-ZfYS-
£69.668
£70.801
£73.277
tonj„_3k
£71.281
£71.691
£74.155
(per
long
£64.652
91.375c
St.
Louis™-
,
11.000c
10.006c
(6
78.330(1
79.J00d
75.274d
$2.81254
$2.81454
$2.81111
104.250c
103.060c
$35,000
Quicksilver (per flask
$35,000
$35,000
§240.273
$245,000
$228,120
of
76
pounds)—
boxed--—-.
York,
—
-
—
grade
99%
(per
grade
pound)
ingot
_
-i—29.000c
-
—
——
weighted
—
pound)-.
(per
.
—
-
......
——
industries
——
labor income.^
Business
and
400,520
488,6310
408,580
Rental
793.420
670.280
(.59,290
360,880
Dividends
29.500c
$77,000
$67,000
$1.20000
$1.55000
$1.30000
§1.30000
Not avail.
$1.75000
$1.75000
$2G.800
52G.800
$26,100
$24,700
$24,700
$24,000
35.2.50c
35.250C
35.250c
74.000c
74.000c
74.000c
$2.25
$2.25
$2.25
$376.2
*$373.2
255.8
*253.4
109.0
*107.5
86.1
*85.0
66.7
*66.2
;
:
———
—
—
i-
professional—
;
378 240.
29.000c
29.500c
$1.20000
—
—
Farm
32.590c
.
29.000c
$2.00000 '
states
.
Service
94.665c
commerce)—Month
Commodity,. producing industries—-—
Manufacturing. only
Distributing industries-.
Government
$77,000
88.625c
aver¬
Aluminum, 99% grade primary pigMagnesium ingot (per pound)-—
Nickel
•r
29.500c
pound)..-
(per
32.590c
32.5f)0c
—
(per pound, deliver ton lots).
(small lots).—.——;
_•
personal income.
Wage and salary receipts, total
STOCK
31. J 55c
28.108c
£230.G45
*
Total
June 12
———;—,— June 12
—_
.Round-Jot purchases by dealers—Number
•
—
130.7
186.1
£75.875
age
1,185,643
—June 12
,———_—„
149.6
'
91.375c
Other
Number of shares—Total sales
192.6
0
Antimony (per pound), bulk Laredo—
Antimony
(per pound), boxed Laredo
Platinum, refined (per ounce)..—.
Round-lot sales by dealers—
,
138.7
134.4
15C.2
(per ounce)—.....
Silver, London (per ounce)
.1.
Sterling E.xehange (check)™
Till, New York Straits-.
Z——
Gold (per ounce, U. S.
pticc)
Z--..aZZZZZZZ'
department of
of May in billions:
1,131,478
——
145.3
134.5
24,945
York
(
$51,566,564
,
145.4
.192.7
*29,106
—
i'eksonal income in tiie united
2,018,040
short sales—
92.1
£77.347
New
Bismuth
$105,944,393
Customers'
129.7
91.9
10.509C
Aluminum
1,842,689
Customers'other sales—
132.4
92,1
£64.176
Cobalt, 97%
950,596
§106,482,864
/
98.4
133.5
11.500c
Cadmium
1.913.313
.
98.9
£77.353
'Antimony, New
550,780
$103,970,503
-
108.9
9S.0
11.000c
Cadmium
1,846,943
108.0
11,500c
169,320
1,540,429
106.7
108.2
£73.409
610,562
1,491,283
107.0
T
108,110
June 12
-
130.9
107.3
prime. Western, delivered (per
pound)
London, prompt (per long ton)...
London, three months (per lont
long ton)
Silver and .Stofling
Exchange
877,390
—.June 12
Odd-lot purchases by dealers (customers' sales)—
Numtjer of orders—Customers' total sales
——-—June 12
—
133.8
30,232
(per lone ton)
pound)—East
107,180
3,257,843
—.
104.0
133.8
22,002
_
purchases)—t
...
103.8
$51,486
Zinc,
Silver,
C03I3IISS10N
Dollar value
131.(5
103.7
.*$50,323
pound7ls^__
843,416
STOCK
Y.
116,5
1.38,7
31.102c
pound)
ftThree months, London
STOCK TRANSACTIONS FOIt ODD-I.OT ACCOUNT OF ODDLOT
137.3
lis.2
135.3
(R OTATIONS)—
„
36,480
1,071,261
————
139,3
113.7
$50,825
refinery (per pound)-refinery
984,781
3,483,922
—
127M
$29,424
(per pound)_N..
Common, East St. Louis (per
Total round-lot
-
111.5
128.7
139.3
*21,477
Common, New York
1,290,360
1,646,840
—;—.——June 12
-—U
—
128.8
137.4
'$28,846
——
2,—,
104.7"
114.8
21,66-6
,ZZ"_-ZZZ1_Z_ZZ
Lead—
initiated off the floor-
Total purchases
123.6
115.2
$29,159
—
1,898,780
2.276,360
._
Ottier transactions
125.6
102.8
111.8
...
48,74*2
ZZ-Z.ZZZZZ.
ttThree months, London
109.99
2.358,080
2,407,610
2,864,820"
112.9
60,142
'
Domestic
.
1,996.090
112.6
120.5
96,000
TrZine,
———.——June 1'2
,
116.6
133,000
MZinc,
——
—
132.8
111.5
■
52,100
,U
.
:
Exports
277,429
97
of
sales
134.1
Coppt#—
272,519
497,831
110.5
134.5
(millions of dollars):
„..;v
June:
3.79
31 UM¬
OF
specialists in stocks in which registered—
Total purchases
:——
—_2—— June 12
-Short
April
METAL PRICES
398.3
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions
of
t'London,
—.
121.6
115.3
90,000
Total
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1919
123.6
117.0
115.2
Z-
1_;
ttLondon, prompt (per long ton)_
——.——-———June 27
-
123.9
117.7
4.ZIZZZ
(bales)
Sales
NATIONAL PAPERBOAIID ASSOCIATION:
Orders received
124.0
m.anufacturers' inventories and sales
4.00
—July
—
INDEX
3.03
3.79
1
31
•
4.71
5.05
;
4.43
4.54
——July
Group
Group——
Industrials Group
May
(bales)
85.07
4.48
Utilities
(bales)
84.94
4.59
Public
-
7
————;—-
Z'
Z-ZZL
.......
Inventories-
•
•.
(tons)•
7
AVERAGES:
U. S. Government Bonds——
-
;
——
Shipped
7
——
Average- coi^orate™—————
Railroad
Produced
1...
Lintors—■
-July
—.
;
—
—
.
•
May 31
(tons)
———July
.
-
Group-
Industrials Group
(tons)
87.59
•
85.72
Public
Stocks
93.36
85.98
87.59
$87,600
6 ,'7 00
179,200
233,100
.
(tons)
Stocks
89.23
89.09
Railroad
S3.10
83.27
*$86,400
prod¬
Hulls—
—
§87,300
Cotton Seed—
AVERAGES:
:
12,200
"23,900
commerce—Month of
.
U. S. Government Bonds-
$51,500
*12.000
*24,200
May:
31.050c
—————
Z
ami recreation—^
Other goods and services...
§35.17
-July
—~
;
—
(primary pig. 09.5% )
(New York) at—
tin
MOODY'S
at
at
—
ucts—dept.
—
.
tZinc
§38.17
'
—
Reading
QUOTATIONS):
refinery at:.——
Export refinery at.._——_
Lead (New York) at
'——————_—
Lead
§38.50
.
•,
I_~_"
apparel
Private
copper-
Domestic
-a-,-
Transportation
.
""**
oil..—_
;
operation
Footwear
o
100)
™
""""
luel
and
Public
June 30
—-—11-1.1-
electricity
fuels
Medical
——.———
-
(Jan. 1953
-
...
&
PRICES:
Finished steel »(per lb.)
Pig iron
July
—July
•
(COMMERCIAL
IRON AGE
and
Other
(in 000 kwli.)—_—
BRADSTKEET, INC
vegetables
-
'
Electric output
$50,300
12,100
24,400
111.6
Apparel
Men's and boys'-2-1
Women's and girls'--.
EDISON ELECTRIC INSTITUTE:.
_
poultry and fish
Houschold
110
~
bakery products—
and
Solid
INDEX—FEDERAL RESERVE
AVERAGE
"
Hcusefurnishings
8.585,000
$50,800
11,943
100—
™
products
Housing
COAL
—June27
June 27
:;~~
———-—LIZII™"
home
Other food at homo
Food away from home
250,700,000
•
17,554
V
;™
and
Meats,
§466,263.000
16,660
.
;
at
Dairy
$491,900,000
/July
dollars):
-
239,500,000
•234,600.000
.—*——July
Ago
April
_
'
Food
§474.100,000
:
:——
.
Month
(
items
Food
2
OUTrUT (It. S. BUREAU OF MINES):
^Bituminous coal and lignite (tons)-—-—
Year
Month
COM¬
of
consumer price index—j 947-1919
Month of May;
■;< y
>"3
2
——-—
Previous
'
July
——.—July
$315,700,000
OF
_~~Z"
Fruits
—,.
————
DEPT.
—
SERIES —Month
•
Tot al
ENGINEERING
/Total- U. -S. .construction-—k—-i—.———
%V. / Private construction
of that date:]
are as
Latest
BRADSTKEET,
Wholesale
NEWS-RECORl):
•
'
of
&
Manufacturing
Cereal
Revenue .freightjloaded (number of cars)-June 27
/Revenue freight;received* from connections (no. of cars)— June 27
—
NEW
Retail
RAILROADS:
CONSTRUCTION
INVENTORIES
-(Millions
7,541,000
12,487.000
....—
Residual luel oil (bbls.) at
ENGINEERING
6,373,335
28,682.000
——«
AMERICAN
7.010,825
either for th$
are
BUSINESS INCORPORATIONS (NEW) IN THE
MERCE
7.025,075
June 26
_
—
CIVIL
1,442,000
—June 20
—
OF
2.604,000
V
outputv(bbls.)-—1—
June
Stocks at refineries, bulk terminals, in transit, in
pipe line
Finished and-unlinished?gasoline (bbls.). at
June
Kerosene (bbls.) at—,
—'
June
Distillate fuel oil (bbls.) at—!
———June
ASSOCIATION
53.4
-—I-- June26
—
Residual luel oil
'
*2.215,000
of quotations,
cases
UNITED
of
——,——.
in
or,
Ago
92.0
7,202,625
7,888,000
-
Dates shown in first column
that date,
on
production and other figures for the
cover
Year
Ago
*73.2
§2,357.000
—June 20
Gasoline
output
bbls.
output (bbls.)
Distillate fuel oil output
(bbls.
I—
Crude.xiuxs to stills—daily
Kerosene
Month
Week
J83.2
month available.
INSTITUTE:
condensate
,42 .gallons-each)—
„,
July 11
—.—
or
month ended
or
Previous
Week
operations (per cent capacity)
Equivalent to—
Steel ingots and castings
following statistical tabulations
latest week
—_
income of persons—
8351.4
233.1
.
95.6
74.6
62.6
35.4
*35.2
33.4
44.7
*44.6
41.5
9.6
9.6
8.9
33.5
*33.1
30.7
13.2
<13.3
15.2
12.1
12.5
12.5
12.7
12.6
Personal interest income—
20.5
20.2
19.3
Transfer
26.3
*26.3
2G.4
——
—
-
—
12.4
"
WM3HANGE AND KOIND-I.OT STOCK TRANSACTIONS
4FOK ACCOUNT
Total -oound-lot
•
OF AIEMBERS
Less
(SHARES):
.■"
sales—
^
Other
•
sales
.June 12
Total sales
June 12 '
WHOLESALE PRICES, NEW SERIES
"LABOR
•
—
(19X7-49
e=
—
U.
714,200
636,980
741,590
748,710
15,565,060
15,'144.600
16,279.260
15,781,580
18,386,510
19,128,190
12,805,500
1-3,554,210
S. DEPT. OF
surance
Total
real
for
social
—
—
2_ June 30
119.3
89,4.
119.6
119.4
119.2
90.7
91.1
96.5
in-
1—
—
nonagricultural income
estate
areas
of
Insurance
June 30
—
products—
contribution
'
financing
u.
s.
—
of
in
home
Apr.
Banks
Mutual
companies
and
trust
loan
(000's
savings
7.9
6.7
*335.9
332.4
$1,148,193
114,793
$1,040,000
$786,767
117,000
553,028
520,000
105,521
385,076
7.9
bank
omitted):
—
—
companies
'
359.0
noxfarm
Savings and loan associations
Commodity Group—
JFbrm
employees'
board—Month
100):
Ait commodities-
payments
-"
banks—;
—
124,498
120,000
103,394
333,073
313,000
278,217
502,096
480,000
363,308
$2,775,681
$2,590,000
$2,022,283
v
■
'Processed
All
\ i
foods—
commodiBes
•Revised figure.
i
other than farm and
June 30
foods
-June 30
'Includes 1,097,000 barrels of foreiem crude
'108.0
107.3
112.8
Individuals
101.0.
103.9
101.5
115.3
Miscellaneous
127.9
127.9
127.8
125.3
107.3
SBased
annual
147,633,670 tons
as of Jan. 1, J.959, as against Jan. 1, 1958 basis of 140,742,570 tons.
INumber of orders not reported since introduction of
Monthly Investment Plan. /Prime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-half cent a pound.
.
runs.
011
new
capacity of
•"Domestic
—
lending
five
institutions
where
freight l'rom East St, Louis exceeds 0.5c.
""F.o.b. Fcrt Colburne U. S. duty included.
ffA.verage of daily mean and bid and ask quotations per long ton at morning session
of London Metal Exchange,
i/Increase all stocks.'tons
or
more
but
less
then
carload
lot boxed.
§§Delivered
37
Chrbnicle.
The Commercial and Financial
.
.
Thursday, July 9, 1959
.
(138)
38
* INDICATES
(par five
Proceeds—For research and
4130 Howard Ave., Kensington,
Md.
Wesley Zaugg & Co., Kensington,
and Williams, Widmayer Inc., Washington, D. C.
order proceedings instituted by the SEC.
Md.,
Stop
Office
capital.
Underwriters
—
—
.
N. J. (7/13-17)
shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To
pay demand bank loans of $300,000 and for working
Airwork Corp., Millville,
18 filed 175,000
June
"
Underwriter—Auchincloss, Parker & Redpath,
capital.
"
New York.
be received on
^ Alabama Gas Corp. (8/6)
July 8 filed 30,843 series A cumulative
cents), and 200,000 shares of
A gee
Leach,
&
sometime during
,
Offering—Expected
Birmingham, Ala.
August.
Alaska Mines & Metals Inc.
1,431,200 shares'of common stock (par $1),
1,000,000 shares are to be offered publicly and
431,200 shares are to be reserved for sale to the holders
of 6% debentures due 1962 issued by DeCoursey-Brewis
Minerals Ltd., the company's parent (payment for the
shares' by such debenture holders may be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares purchased
for cash or for the 6% debentures of the parent at the.
rate of one for each five shares purchased. Price—$1.25
Feb. 25 filed
of which
share. Proceeds—For general corporate purposes and
working capital.1 Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—Tg.be named by amendment
per
Recording Equipment
Inc.
Co.,
notification) 650 shares of convertible
June 12 (letter of
preferred stock'and 225,000 shares of class A common
stock (par $1).
Price—Of preferred, at par ($10 per
share); of common, $1.30 per share. Proceeds—For the
manufacture and purchase of electronic recording equip¬
ment. Office—Washington St,, Westboro, Mass. Under¬
writer—None.
Inc.
June 26 filed 38,697 outstanding shares of capital stock
Price—To
(par $1). Proceeds—To selling stockholders.
offered
be
market
Stock
from
time
to
time
in
the
over-the-counter
the American
market price.
(if the shares are listed)- on
Exchange at the then prevailing
or
Office—s30 Verbena Ave., Floral Park, N. Y. Underwriter
—None.
'
Aloe Creme
Laboratories, Inc.
June 19 (letter of notification) 75,000 shares of common
stock {par $1) to be offered for subscription by stock¬
holders of record June 1, 1959 at the ratio of one new
share for each seven shares held. Price
$2 per share.
Proceeds
To increase inventory and to pay accounts
payable. Office—1612 E. Sunrise Blvd., Fort Lauderdale,
—
—
Underwriter—None.
Fla.
Alscope Explorations Ltd.
March
26 filed
1,000,000 shares of capital stock, of
which 700,000 shares are to be offered publicly in the
United States, and 300,000 shares in Canada. Price—Re¬
lated to the then current market price on the Canadian
Stock Exchange (31 cents per share on March 16). Pro¬
ceeds—For properties, drilling costs, working capital and
general
corporate
purposes.
Office
303
—
Alexandra
Bldg., Edmonton, Canada. Underwriter—None in United
States; Forget & Forget in Montreal, Canada.
State¬
ment effective June 1.
June
$5
29
per
Mines, Inc.
filed 150,000 shares of
share. Proceeds—To
common
assume
and
stock.
pay
an
Price—
option
held by its Mexican
•
subsidiary to purchase certain min¬
ing claims in the State of Durango, Mexico, owned by
Compania Minera La Bufa, S. A., by paying, to such
company $50,000; to construct and place in working oper-ation a mine, mill and accessories
capable of processing
-
100 tons of gold
day estimated to cost $350,000;
payment mf about $15,000 of other obligations; to carry
on with the balance, of the
proceeds an exploration pro¬
gram for additional gold and mineral properties both in
Mexico
and
Southwest
ore
the
United
States.
Office
—
Bank
of
the
Underwriter—None.
American Buyers Credit Co.
Nov. 13 filed 5,000.000 shares of common
stock, of which
4,545,455 shares of this stock are to be offered for public
Bale at $1.75 per share. [Shares have been issued or are
issuable
under
agreements
with
various
policy
holders
In American Buyers Life Insurance Co. and American
Life Assurance Co. (both of Phoenix) permitting them
its. aging period.
whiskey during
Under¬
Cleveland, Ohio.
Basic
Materials, Inc.
(letter of notification) 1,200,000 shares of com¬
mon
stock (par 10 cents).
Price—25 cents per share.
Proceeds—For mining expenses. Office—c/o Harold A.
Roberts, President, Arroyo Hondo, Santa Fe, N. Mex.
Underwriter
Hyder, Rosenthal & Co., Albuquerque,
April 9
—
Mex.
N.
Big Apple Supermarkets, Inc. (8/10)
24 filed 425,000 shares of common stock (par 10
cents).
Price—.$2 per share.
Proceeds—Expansion apd
of
working
11, 1959. Price
supplied by amendment. Proceeds—For payment
long-term debt and, in part, for plant construction.
July 28, 1959; rights to expire on Aug.:
June
June 19
March 23 filed
Gas Corp. Ltd.
745,000 shares of capital stock
(no par),
which 500,000
tion
and
development
Office
program.
—
Apache Oil Corp.
2100 Scarth
also
to
200
at
2:00
be
Brockton Taunton Gas Co.
p.m.,
fered for subscription by common
July
195$.t Price—To be supplied by amendment.
repayment of short-term bank loans in¬
curred under the company's 1956-1958 construction pro¬
Aug.
Office—178 Atlantic Ave., Boston, Mass.
writer—The First Boston Corp.,; New .York.
gram.
-
Central American Mineral
Office—161 East
Corp. (7/13-17)
150,000 shares of commoh
stock (par five cents). Price—$2 per share. Proceeds—
For working capital. Office—500 W. 18th St., Hialeah,
Fla. Underwriter —4 Charles Plohn & Co., New York,
Engineering
ditures; for investment hi stocks of subsidiaries; and for
other corporate purposes. Office—144 South
12th St.,
■
Lincoln, Neb. Underwriters—Paine, Webber, Jackson &
'Curtis, New York; and Loewi & Co. Inc., Milwaukee,
Wis. ■:
additional trailer sales lot and
for construction cost of mobile home park. Address—3455
Highway, Norfolk, Va. Underwriter—Palombi Securities
Co., Inc., 37 Wall St., New- York,' N.
one
June
tive March
company's subordinated debentures' in exchange,
value, on the maturity dates of those securities
as
there are bonds remaining unsold in this
offering. No bonds will be reserved for this exchange
offering. Price—100% of principal amount. Proceeds—
so
face
long
To increase
the exercise
Baird-Atomic, Inc., Cambridge,
17 filed
Price—To
used
to
be
180,000
shares of
(7/14)
stock
(par $1).
maintain the working capital of the com¬
be
initially
applied to
short-term notes due within
may
nated
Del.
al&o
be used
debentures
not
to
one
year.
the
reduction
of
Part of the pro¬
retire outstanding subordi¬
exchanged.
Underwriter—None.
Office—Georgetown,
...
supplied by amendment. Proceeds—To be
retire bank
loans
and
for construction of new
plant facilities. Underwriter—White,
York.
Mass.
common
or
but will
pany
■>
ceeds
June
,
of the
which,
31.
Corp.
filed
"
the company proposes to issue 126,072 shares to A.M.I
Inc. for the latter'js property and
assets, and the re¬
$tock options. Underwriter—None. Statement effec¬
29
Acceptance
$600,000 of series F 6% five-year subor¬
dinated debentures, to be offered to the present holders
at
maining 166,354 shares are to be issued upon
<y-
...
Citizens'
Automatic Canteen Co. of America
of
(7/10)
80,000 shares of cumulative preferred stock
($25 stated value). Price—$25 per share. Proceeds—To¬
gether with other funds, will be used to repay advances
from Central Electric & Gas Co.; for construction expen¬
Azalea Mobile Homes, Inc.
(7/14)
May 21 (letter of notification) 300,000 shares of class A
common stock (par 10 cents).
Price—$1 per share. Pro¬
March 2 filed 292,426 shares of common stock, of
A
'
Central Telephone Co..
June 5 filed
May 28 (letter of notification)
opening
Resources, S. A. V
42nfi St., New York, N. Y. Underwriter
—None.
•
ceeds—For
Under-
May-27 filed 620,000 shares of common stock, of which
500,000 shares are to be offered lor the account of the
company and 120,000 sjhares for the account of certain
selling stockholders. Price—$1 per share. Proceeds—To
finance acquisitions and
to increase working ■* capital.
y
Offering—Expected sometime during August.
'
13,
Proceeds—For
Paine, New York; Cumber¬
■
stockholders of record
1959, on the basis of one new share for each
shares then held; rights to expire on or about
29,
eight
Securities Corp., Nashville, Tenn.; Davidson & Co.,
Inc. and Investment Corp. of Fidelity, both of Knoxville,
Astronautics
37,268 shares of common stock, to be of¬
29 .filed
June
land
Tenn.
supplied by amendment. Proceeds—For working cap¬
Underwriter—Emanuel, Deetjen & Co., New York.
(7 29)
ital.
Apache Oil Program
writers—Abbott, Proctor
New York.
Corp.
75,000 shares of common stock (par 50
37,500 shares will be offered for the
account of the company and 37,500 shares will be offered
for the account of certain selling stockholders. Price—To
prior to Aug. 16, 1960, and will
Appalachian National Life Insurance Co.
July 1 filed 966,667 shares of common stock, including
160,000 shares reserved for option to employees and di¬
rectors.
Price—$3 per share. Proceeds—To be used for
the conduct of the company's insurance business. Office
—1401 Bank of Knoxville Bldg., Knoxville, Tenn. Under¬
Industries
of which
cents),
rights for the
•
H..
filed
24
June
(CST) on Jan. 31, 1962. Unless
1960 commences operations on or
before June 30, 1960, all unexercised rights will be void
as of 2:00 p.m.
(CST) on that date, and their purchase
price will be refunded. Price—$12,000 per unit. Pro¬
ceeds— For
general corporate purposes. * Office — 523
Marquette Avenue, Minneapolis, Minn. Underwriter—
APA, Inc., the corporation's subsidiary.
expire
Concord, N.
—
British
•
company's $1.25
stock. Warrants evidencing the rights
value common
will be nontransferable
Inc.,
Co.,
&
Underwriter—Lee Higginson Corp.,
purchase of one share per right of the
par
D.)
selling stockholders and the remaining 70,000 shares for
company's account. Price—To be supplied by amend¬
Proceeds
To repay outstanding indebtedness.
ment.
only to the stockholders of the company. Each subscrip¬
to a unit in Apache Oil Program 1960, will entitle
subscribe
(Richard
the
.
tion
to
convertible
(7/20-24)
June 23 filed 110,000 shares of common stock (p5r $1),
.of which 40,000 shares will be sold for account of two
May 25 filed 350 units of participation in the Apache
Oil Program 1960 and 70,000 rights for the purchase of
common stock
(par $1.25). The offering is being made
subscriber
(7/14)
Inc.
(letter of notification) $250';000 of 8vt
Brew
Street, Regina, Saskatchewan, Canada.
Underwriter—
Cumberland Securities, Ltd., Regina, Canada.
.
New-
10,000 shares of class A
common
stock (par $1) to bp offered in units of one
$500 debenture and 20 shares of class A common stock.
Price—$600 per unit. Proceeds—To pay obligations and
for working capital.
Office — 1205 Oil Centre Station,
Lafayette, La. Underwriter—Syle & Co., New York, N. Y.
shares are to be sold for the account
of the company, and 245,000 shares by the holders there¬
of.
Price—30 cents per share.
Proceeds—For explora¬
of
Co.,
&
debentures due July 1, 1969 and
.
& Natural
Petroleum
Bostic Concrete Co.,
®
Inc.
^American & St. Lawrence Seaway Land Co.,
-July 8 filed 500,(100 shares of common stock to be of¬
fered publicly. Price—$3 per share. Proceeds—To pay
off mortgages and for general corporate purposes. Under¬
writer—A. G. Gabriel & Co., Inc., New York.
...
Amican
Underwriter—Simmons
capital.
York.
Underwriter—F. Eberstadt & Co., New York.
per
Building, Houston, Tex.
finance
writer—Fulton Reid & Co., Inc.,
(7/28)
N. Y.
America
1, 1959. Price—To be supplied by amendment. Proceeds
—To be
the
All-State Properties,
receipts for not less than
by whiskey warehouse
—To
$11,221,500 of subordinated convertible
1983, and 544,314 shares of common
stock.
The debentures are to be offered to common
stockholders on the basis of $100 principal amount of
.debentures for each eight shares of common stock held
on July 28,
1959; rights to expire on Aug. 11, 1959. The
common shares are to be offered to present stockholders
on
the basis of one new share for. each 3% shares held
on
Alden Electronic & Impulse
cured
due
debentures,
(7/29)
2,500,000 original proof gallons of Kentucky bourbon
whiskey produced by the company not earlier than Jan.
filed
26
June
preferred stock,
par
-
July 6 filed' $2,000,000 of 6% secured notes due July 1,
1965.
These are direct obligations of the company .se¬
stock (.par 10
6% preferred stock (no par
Corp.
-v.:
ic Barton Distilling Co.
Corp., New Orleans, La.
American-Saint Gobain
(par
Colo.
value, $9 stated value). Proceeds—For construction and
related expenditures. Office — 513 International Trade
Mart, New Orleans, La.
Underwriter—Lindsay. Securi¬
ties
————-——r
Co.
notiifcation) 100,000 shares of common
$1.60). Price—$3 per share. Proceeds—For
incidental to operation of ah insurance com¬
pany,
Office—Suite 619, E. & ,C. Bldg., Denver, Cc27.
Underwriter—Ringsby Underwriters, Inc., Denver X,
Inc.
Syndicate,
1^—
——
expenses
600,000 shares of common
filed
25
June
•
$100 (with attached warrants) to be offered to stock¬
holders of.' record on or about Aug. 5, 1959, on the basis
of one new share of preferred stock for each 30 shares of
common
stock then held/Price — To be supplied by
amendment. Proceeds—To pay construction costs. Un¬
derwriters—White, Weld & Co., New York; and Sterne,
Investors
ISSUE
Jan. 30 (letter of
Underwriter—The First Boston Corp. and Lazard
Co., New York. Offering—Late this summer.
American
Aug. 5.
prospectus.
stock
Freres &
E first mortgage bonds,
due 1984. Proceeds—To pay construction'costs.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
Co., Stone & Webster Securities Corp. and Kidder, Peabody & Co. (jointly); Salomon Bros. & Hutzler and
Equitable Securities Corp. (jointly). Bids—Expected to
REVISED
Bankers Preferred Life Insurance
30" filed
grams.
* Alabama Gas Corp. (8/5)
July 8 filed $4,000,000 of series
in
Foreign Power Co., Inc.
$22,500,000 of convertible junior deben¬
tures, due 1982. Price—To be supplied by amendment.
Proceeds—To be applied in part to. the repayment of
outstanding bank loans, and the balance Will be used
for general corporate
purposes, including investments
in subsidiary companies, to aid in their construction pro¬
&
American
June
ITEMS
April 17 filed 300.000 shares of cfrmmon stock (par $1).
Price —$3.25
per
share.
Proceeds — To develop and
manufacture aircraft embodying the body lift principle,
etc. Underwriter—Firm originally mentioned has with¬
drawn. Office—1 'Kennedy St. N. W,. Washington, D. C.
Note—SEC held hearing June 18 regarding statements
been
lerwriter—N one.
•
PREVIOUS
Ballard Aircraft Corp.
purchase
aave
for equipment and working
t
stock at $1.25 per share. Sales personnel
given the right to purchase stqck at $1.25
per share up to the amount of commission they receive
m stock sales made by them.]
Proceeds—For the operalion of other branch offices, both in Arizona and in other
-tates.
Office—2001 East Roosevelt, Phoenix, Ariz. Un-
to
Research Associates, Inc.
Dec. 1 filed 409,000 shares of common stqck
Advanced
cents). Price—$6 per share.
development program; and
Registration
Now in
Securities
ADDITIONS
SINCE
Weld & Co., New
Civic Finance Corp.
May 21
stock
(letter of notification)
being offered
(par $2)
11,116 shares of common
a share-for-share ex-
on
Volume
19C
Number
5862
The Commercial
and
Financial Chronicle
(139)
change basis to stockholders of Milwaukee Loan & Fi¬
nance
633
Co.
N.
Offer expires on or before Aug.
Water
15< 1959. Office'
St;, Milwaukee, Wis. Underwriter—jNone..
Colonial
Energy Shares, Inc., Boston, Mass.
(7/28)
May 5 fileu
At
market.
—White,
shares of
1.100,000
Proceeds—For
Weld
&
Co.,
investment."
New
York,
Co., Los Angeles. Cal/if.
Colorado
Water
stock.
common
Witter
/
•
&
(letter of notification) $220,000 of 6% unsecured
iebentures due April 1, 1964 "and L.iOO shares of common
tures
(par
$1)
and
one
offered in
be
to
share
of
of
units
stock.
$200 of
28
(letter of notification)
stock.
.Price—At
Price
$205 per unit
working capital. -Office-—Suite 42
901
Street, Denver, Colo. \ Underwriter—Associated
Securities 412 Main Street, Cedar
Falls, Iowa.
—
Refining Corp.
Qec. 16, 1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures du«
Salt
July 9
(Thursday)
V
,
(Bids
11
EDT)
a.m.
June
22
(letter
July 10
Price-^-At par
(PalEf,
Webber,
Jackson
July
13
Curtis
&
•Astronautics Engineering
(Charles Plohn &
.
Elion
Co.)
Precision
'Charles
Industrial
PIchn
&
Co.)
& Co.i
&
Co.)
(Charles
Corp. >
Securities
Wellington
Co.
Co-.,
Electronics,
.Charles
Park
•
Co.
Azalea
Mobile Homes,
(Palombi
:
Baird-Afonfic.
Silver
Netherlands
(White,
&
Creek
(Offering
$1,440,C00
Voss
Bostic Concrete Co., Inc
$50,000,000
States
Inc.)
Co.)
^
shares
Com.
Common
$300,000
I.
Wilcox
shares
Co.,
Inc.)
Common
shares
133,800
Barton
43,590
du Pont
Co.)
165,000
v
&
Co.)
1,550,000 shares)
Securities
£9
by
S.
Lunt
D.
Electric
&
$1,000,000
Co
Common
(Lee Higginson Corp, and Stern Bros. &;
$3,000,000
-Debentures
$15,000,000
Notes
&
Co.,
Inc.)
(Eastman
Hexcel
37,268
$2,000,000
Common
by
The
First
Podesta
&
Co.)
Common
250,000
shares
Common
Dillon, Union Securities
Products,
(F. S.
&
Co.)
75,000 shares
Inc
Common
Smithers &
Co.)
50,000 shares
Magnuson Properties, Inc.—
&
Boston
shares
Cigar Corp
..Common
Inc.)' 500,000 shares
Co.,
Matronics, Inc.
Common
(Vermilye Brothers) $750,000
National Citrus Corp
<R.
(A.
F.
Products,
M.
Law
&
<
Campeau Co..
Common
Inc.)
$300,000
Inc
Co.
.Common
Pan
and Clark,
American World
Landstreet & Kirkpatrick, Inc.)
shares
Airways, Inc
(Offering to stockholders—underwritten
Weeks)
by
Debentures
Lehman
Brothers
Siipercrete
11
EDT)
a.pi.
Bonds
$8,000,000
Ltd.
(Straus,
Common
—
Blosser
&
A
$46,962,100
Public Service Co. of New
Hampshire
McDowell)
July 30
300,000
shares
~
Hickerson Bros. Truck Co., Inc..
(Birkenmayer &
International
Tuna
318,736 shares
Co.)
(Thursday)
Co.)
$285,000
Common
Carter
&
August 3
(Tuesday)
Common
Corp
(Gates,
Co.v) $175,000
■
July 21
Co.)
Transportation Inc
(Cruttenden,
Co.
Common
—
Co.)
&
&
shares
Co
Darlington
Co.)
(Wednesday)
Reid
(Bids
Common
368,571
1,100,000 shares
—Debentures
Hornblower &
Common
^
Co.)
&
200,000
shares
Corp
&
Corp.—
Union
shares
—Common
&
Wither
Distilling Co
Consolidated
.Common
Inc.)
Co.,
& Co.)
Common
Brockton Taunton Gas Co
(Offering to stockholders—underwritten
Paco
Co
Precision
Com. and Debs.
_
Securities
—
Allen
40
page
Debentures
Securities
Plywood
(Blair
Common
Netherlands
Reid &
(Hill,
$300,000
180,000
Dean
Union
Dillon,
Buckingham
......Common
$4,505,600
stockholders—underwritten
to
Oil
.Common
Co.)
Inc.)
Strategic Materials Corp.—..
Common
Weld
United
(Fulton
(Canada) —Debs.
"
Inc._:
and
July
.Debens. &
<fc po.i
and
on
Shares, Inc
Dillon,
(Eastman
Ctfs.
Corp
Seiberling Rubber Co
(Eastman
.Equip. Tr.
110.000
(Maltz, Greenwald & Co.)
Inc..
Co.,
Corp.)
Brothers)
Forge
(Francis
...Common
(Tuesday)
Securities
Energy
$3,600,000
Co.
and
July 14
Gobain
(White. Weld & Co.
Rowe Furniture Corp.__^
LlCommon
Co.)
&
/Fulton
$412,500
Inc;)"
&
Drop
;
.
lnc._
Plohn
Plohn
Neiman-Marcus
-
$435,000
and
Colonial
&
shares
Ames & Co.,
Atlicrton
(Lehman
Tape Cable Electronics Co., Inc.—
&
Dominiek
(Monday)
Fuller
D.
hearing has
a
permanent.
$4,000,000
invited)
Hlgginson
and
14 whether to make this order
(Offering to stockholders—underwritten by F. Eberstadt
$11,221,500 '
$1,320,000
.
Standard Aircraft Equipment Co., InCh-.Common
(Adams & geek i * $300,000;-"
(Charles Plohn
Co. >
—
Winston & Co., Inc.)
....l.^ommon
Securities
been scheduled for July
American-Saint
Engineering Associates, Inc
$360,000
Co., Inc.-;
Aetna
Temporarily suspended by the SEC
(Thursday)
be
to
com¬
per unit. Proceeds
Office—908 Alamo
Common
Faradyne Electronics Corp...
Common
Plohn
16
(Sell inner,
^ -
Corp
(Charles
properties.
gas
shares of
two
National Bank
Building, San Antonio, Texas.
Under¬
writer—Frank Lerner Co., New
York, N. Y. Offerings—
,
(Netherlands Securities' Co., Inc. and J. A.
$300,000
Reheis
Dunn
Inc.)
L-Common
Design
&
Diibert's Properties, Inc..
—_„Common
"
20,000
Ry
(S.
Securities Co.,
by
(Richard D.) & Co., Inc.—.
(Lee
Lieco, Inc
Radar
Brew
1*.—Debentures
$375,090
*
Witter
July 20
'
$200,000
Corp
development of
Corp.)
$613,625
Netherlands
and
Co.)
&
Corp. and A. E
•
into
Common
shares-
Debentures
(Bids
(The First Boston
$300,000
i
&
Cable
Co.
&
Pacific
^
ferred stock may be converted
mon stock at
any time.)
55,930 shares
Quebec Hydro-Elec. Commission
$300,000
Leasing Corp.___.
Jefferson Wire
Missouri
»
Far-
Common
Witter
July
Co., Inc.——......Common
Plohn
(May
(Charles
Co.
Meter
...
20,000
Associates
—......Common
Harrison
•
Ideal
Dominiek)
&
(Dean
.Common
Consolidated
Petroleum
Industries, Inc.
April 30 (letter of notification) 80,000 shares of
6% con¬
(par $3.50) and 80,000 shares of
common stock
(par 10 cents) to be offered in units of
one share of
preferred and one share of common.
(Pre¬
vertible preferred stock
Continued
Varian Associates
—Common
Instruments, Inc
6.12%
,
CALENDAR
Chemicals, Inc
(Dean
&
•
of
Wachob-Bender
—
stockholders—underwritten
to
v>V
Corp._
shares
Polymeric Chemicals, Inc.—___
Varian
——
Co.,
(7/29)
outstanding common stock
(par $1). Price—To be supplied by amendment. Proceeds
—To go to selling stockholders.
Underwriter—Eastman
Dillon, Union Securities & Co., New York.
.
(Dominiek
U. S.
(Monday)
Corp.
12,000
Underwriter
ISSUE
-
\ (AucMncloss, Parker & Reclpath) 173,000 shares
Salt
&
Cigar Corp.
Price—$3.75
Dominiek)
$2,000,000
St.,
share). Proceeds—To retire the
per
U. S. Polymeric
and;Loe\yi
Pro-
Main
Knudson
Consolidated
—For
notification)
($25
Preferred
Co., Inc.)
Airwork
•
J.
Corp., Omaha, Neb.
$6,000,000
(Friday)
of
St., Omaha, Neb.
nam
Bonds
Co._
Telephone
share).
per
So.
presently outstanding preferred stock. Office—3023
(Offering
Central
com¬
^morcu^mula^tiv^inkrh^^f uhd~pfef erfed^stbcl^^fies^Ar
,
Light. Heat & Powef Co.—
shares of
Community Credit Co.
NEW
Union
cents
Office—450
City,. Utah. Underwriter—Earl
Lake City, Utah.
Proceeds^For
Commerce Oil
(10
par
investment.
900,000
^ake
deben¬
Sherman
•
June 23 filed 75,000 shares "of
•
Commercial Investors Corp.
Nov.
iceds—For
Feb. 25
itock
fork.
mon
.
Co.
Power
&
be^ supplied by amendment. Proceeds — Tc"
refinery, Underwriter—Lehman Brothers, Net*
Offering—Indefinite.
ronstruct
Price—
Underwriters
Dean
and
Dct. 1, 1968 and 3,000,Q0Q shares of common stock to b«
jffered in units as follows: $l,00u of bonds and 48
sharej
it stock and $100 of debentures and nine
shares of stock
Price—To
39
(Monday)
•
(Syie & Co.
$250,000
i
units
v:(
'Northrop
-
Griggs Equipment Inc
....Common
Gtierin' & Tavi,or. Inc.)
International Recreation Corp
(Eppicr
•Bear.
Stearns
&
Co.i
(Bids
^
il
Electro
EDT
a.m
'
Medical
vh vcril
•
(Emanui)
invesLing;
Corp
Co.
and
Blyth
Co.,
&
Inc.)
Sj,500.000
Northern
'
,
Doetjen & Co. and liache & Co.)
Weld
Co,
<fe
Co,
States Power
(Minn.)
July 15
Crosby-Teleuonics
(Myron
Co.)
&
Meeds I
Industries,
D.
&
Sherman &
Co.
shares
<i;
Co.
&
William
Co
Inc.)
R.
(White.
-■Myron
A.
Weld
(White,
Co.,
50.000
&
Lomasney
&,
(Blyth &
....Common
Co.)
Co.)
Works
Industries
D.
Seeburg
A.
Co. r
1"
Lomasney
&
(J.
Common
Winston &
A.
Narda
Debens.
(Milton
■
—
Common
Preferred
Co.)
Trans-Sonics.
(Kinder.
Co.)
North
Hills
Owens
Corp.)
Alabama
Corp.)
150,000
shares
A
Inc.)
Co.)
P.
50,000
1.000.000
Bernheimer
&
Co.,
Inc.)
Power
tnii Rowlrs Winston & Co.
)
200.00"
-hares
invited) $10",996,000
(Thursday)
Preferred
Agee
oy
& Leach)
White,
Weld
&
Co.,
$3,084,300
&
Co.)
(Tuesday)
Co.
to be
Common
$850,000
Bonds
-____.
received)
$35,000,000
(Wednesday)
Republic Resources & Development Corp._Common
(John
?
Cr.
Cravin
A;
Co.,
InG.)
$2,500,000
$300,000
to be
Bonds
invited)
$65,000,000
.August 26 (Wednesday)
shares
Common
Common
(Simmons & Co.)
Pacific Gas & Electric Co
(Bids
Pittsburgh & Lake Erie RR
(Bids
share*
$300,000
Inc.
&
to
be
Equip. Tr. Ctfs.
invited)
Nicolaus
V
&
Inc.
Co.,
300.00^-sharer.
30,000
and
Walscon
Weld
&
C
Inc
$3,200,000
&
Co.,
Inc.)
July 28
lOffering
(Friday)
,
Co.
Western
and
Amos
C.
~
.
-.Common
—
(Purvis &
Great
Sudler & Co.)
Life Insurance
$1,500,000
Co
Common
(Offering to stockholders—underwritten by G. J. Mitchell Jr. Co.
and
Purvis
&
Co.)
500,000 shares
shores
Television Shares Management Corp
White,
August 28
I
Common
Co.)
Co.i
206,500
.Common
September 9
(Wednesday)
Community Public Service Co
shares
to
be
invited)
$3,000,000
(Tuesday)
American-Saint Gobain Corp
...Common
-Debentures
Douglas Microwave, Inc.
Inc.)
Specialty Manufacturing Co., Inc. Common
•
t*0,000 shares.
be
August 18
Consumers
Co.—J—__—C—-Common
Electric
Yacht Co.,
(Stifel.
.—Common
,
to
(Simmons
Common
Co.,
$4,000,000
Light Co.-
August 10 (Monday)
Big Apple Supermarkets, Inc._—
.Common
Corp
&
.Bonds
invited)
(August 25 Tuesday)
Netherlands Securities Co.,
$1,900,000
RhoaJes
Bonds
(Wednesday)
be
August 19
and
Blauner
Loeb,
to
and Sterne,
(Bids
Co.)
Common
shares
$15,000,000
to stockholders—Underwritten
Preferred
Securities
(Monday)
27
Inc.
(Shields
$500,000
—
Pcabody & Co., Inc.)
Co.
Line Corp
350,000
shares
Bonds
Securities
shares
Co.
(Tuesday)
August 6
Gas Corp.—
(Bids
Inc.
Tuboscope Co.
(Glore, Forgar. A
&
Co.,
$500,000
Class A Common
Podesta
396.000
200,000
'
St. Clair
Superior Window Co
July
D.
M.
(D.
Co.„
'Cruttenden,
irhd
(Offering
New York Capital Fund of Canada Ltd
$230,000
..Debentures
Podesta. &
Curtis
Corp.—
Schwa,jaeher &
and
Microwave
(Curl
$5,135,003
(Cruttenden,
&
Common
-
$6;000,000
Corp.
Window
i
Radio & Television Corp
(Offering to r-'CiMioldcrs—underwritten-toy While, Weld & .Co.)
Superior
(Bids
(Thursday)
23
„
$630,000
—
&'Co.)
1
Hudson
——Debentures
™
Marshall
Inc.
Webster
&
Gas Pipe
Co., Inc.
^
$300,000
(Offering not underwritten) $500,000
&
Co.,
&
Pipe Line
Stone
and
July
shares
Investors Funding Corp. of. New York
Cook
Blyth
and
Corp.)
lnvuea)
be
^
Raytherm Corp.
v
Mallinckrodt Chemical
Pacific Power &
Hampshire——Common
Weld & Co. and Stone & Webster
Inc.)
Development Corp.
A.
and
(Bids
Class A
&
Ferruan
Debentures
Myron
Co.
&
Transcontinental
...Common
Lomasney
Curtis
to
—Common
Co.)
Insur.
Co..
August 5
c
Corp
$15,000,000
Laboratories, Inc.__-__L_
Hunter Mountain
&
shares
40,000
Electric
$29,C0Q,000
Common
i
Co>-p.)
Jackson
Paine, Webber, Jackson
Stone & Co.) $750,OGO
Staats
$900,000
Cosco, Inc.
Securities
Co.
Securuiis
A:
Alabama Gas
shares
Insurance
Business, Inc
City
Co.,
Transcontinental Gas
..Common
and
Pcabody
$750,000
Hofman
&
Accident
August 4
Debentures
Rothschild
F.
(Kidder,
$450,000
Co.)
(Joseph M&ndell & Co., Inc. and Robert L.
Hamilton
&/ Co.)
Public Service Co, of New
Inc.——...Common
3.000.0CG
Co. )
Life
(Blair
Funds for
Webber,•
'
Union Securities <V
National
Stone
Hayden,
$290,000
First Charter Financial Corp.....
First
Paine,
Corp.
...Common
Bisseil ,&
Electronic
(Eastman Dillon,
(L.
$313,750
w
-Laird,
Pall
..Common
Lomasney
A.
L.
Hayden,
Corp.
Dover Horc-1 Corp
Fanon
(Wednesday)
Co.,
&
—Common
952,033
-Class A
Rothschild N<fc
Life
Pennsylvania
Pall Corp.
P.
Rhoades
and
'
(L.
Loeb,
(Bids
(Offering to stockholders—bids to oe invited)
S5,000,00u
M.
(Wednesday)
July 22
Debentures
...
Interstate
"xllalscy, Stuart & Cc\i $50,000,000
__Com. and War.
(Carl
—Bonds
AMWebstcf Securities Corp.; White,
(Stone
-Bonds
Crowell-Collier Publishing Co
(Equitable
Tennessee Gas Transmission Co
S8.000.000
Corp. )
&
.Common
2
Reading Tube
Staats
R.
Products
Corp.
Debentures
$10,000,000
$17,150,000
Jersey Central Power & Light Co
Micronaire
(William
shares
18,801
Corp.
to stockholders—underwritten
"544,314 shares
-Common
by
F.
Eberstadt
&
Co.j
September 17
(Thursday)
Georgia Power Co.
(Bids to be Invited)
$18,000,000
Preferred
'
The Commercial and Financial Chronicle
40
.
.
Thursday. July 9.
.
1959
(140)
Diversified Inc., Amarillo,
39
Continued from page
*
of America
7
July 8 filed 191,703 shares of common stock. The offer¬
ing will be made after a 50% common stock distribu¬
* Controls Co.
tion
Of the total, 50.000
of
account
of
count
meeting on
shares will be sold for the
the company and 141,708 shares for the ac¬
group of selling stockholders. Price—To be
by stockholders at a
be considered
to
July 21.
a
supplied by amendment. Proceeds—To be added
general funds of the company, with approximately
of .a Canadian
earmarked for acquisition
000
production of motors and solenoids,
plant at Folcroft, Pa.,
the
to the
of
property
products.-Approxi¬
mately $170,000* will be used to retire notes and $250,000
will be invested in or advanced to a Swiss subsidiary.
Underwriters—Merrill Lynch, Pierce. Fenner & Smith.
Higginson Corp., both of
Inc. and Lee
New York.
Mining Corp. Ltd.
Cree
^
,
April 17 filed 260,000 shares of common stock. I rice—
80 cents per share. Proceeds—For exploration program.
Saskatchewan, Canada^
Securities Ltd., also of
Scarth St.. Regina,
Office—2100
Underwriter
Cumberland
—
,
Regina.
Crescendo Oil Co., Inc.
300,000 shares of common
(SI per share). Proceeds —For
June. 1
(letter of notification)
stock.
Price
At
—
par
equipment.vetc.' Office—309% S. Third St.,
Underwriter—None.
lease, labor.
Das Vegas, Nev.
Crescent Petroleum
Corp., Tulsa, Okla.
shares of 5% convertible pfd. stock
12,559 shares of common ($1 par), 34,460
preferred and 9,059 shares of common are.
the exercise of stock options granted when5'
Norbute Corp. were acquired on Aug. 6,
May 26 filed 48.460
($25 par) and
shares of the
Issuable upon
assets
the
of
Underwriter—None.
1958.
^
amm
(7 15)
Crosby-Teletroaics Corp.
•
LL, N. Y.
Business—Designing, manufacturing and
conducting research and development of highly tech¬
specialized electrical and electronic equipment.
Underwriter—Myron A. Lomasney & Co.. New York.
nical and
^ Crowell-Collier Publishing Co. (8:3-7)
Julv 2 filed 200,000 outstanding shares of common stock
(par $1). Price—To be supplied by amendment.
selling stockholders. Underwriter—Carl
-—To
& Co.. New York.
Rhoades
Proceeds
M. Loeb,
.
Crowley's Milk Co., Inc.
filed
26
March
of common
outstanding shares
60,000
(par $20). Price— To be supplied by amendment.
Proceeds—To selling stockholders.
Office—145 Conkliri
•tock
Ave., Binghamton, N. Y. Underwriter—None.
Crusader Life Insurance Co., Inc.
1,000 shares of common
for subscription by stock¬
holders of record April 30, 1959, on the basis of one new
share for each two shares" held. Rights expire Aug. 25,
June
(letter of notification)
3
Unsubscribed shares will be offered to the public.
1959.
Price—$150
per
Office—640
Minnesota
share.
Proceeds—For working capital.
Ave., Kansas City, Kan. Under¬
writer—None.
Corp., Pass Christian, Miss.
Crusader Oil & Gas
May 26 filed 1,500,000 shares of common stock, of which
641,613 shares will be offered on a onq-for-one basis to
stockholders of record May 15, 1959.
The remaining
858,387 shares Hvill be offered publicly by the under¬
writer on a "best efforts" basis.
Price—To be supplied
by amendment. Proceeds—For repayment of notes and
for working capital. Underwriter — To be supplied by
amendment.
•
•
DeKalb-Ogle Telephone Co.
Ma\ 27 (letter of notification) 19.822 shares of
stock
1959,
to be
offered
the basis of
on
then held with
pire
to
stockholders
one
Elm St.,
common
June
10.
10 shares
—
construction
At par ($10 per share).
Office—112 W.
program.
Sycamore, 111. Underwriter—None.
Development Corp. of America
April 30 filed 1,376,716 shares of common stock (par $1)
for issuance upon conversion of shares of the
company's $1.25 cumulative convertible preferred stock
received by DCA common stockholders in connection
add to working capital.
Street,'Mt. Vernon, N. Y. Under¬
York.
New
Co.,
Hotel Corp., Dover, Del. (7/15)..
J tine 26 (letter of notification > 149,500 shares of common
stock (no par). Price—$2 per share. Proceeds—For work¬
ing capital and to retire loans. Underwriter — Laird,
Bissell & Meeds, Dover, Del. and New York.
•
^
Co., Boston, Mass.
Miami, Fla.
stock. Price—$5
April 6 (letter of notification) 300,000 shares of class A
stock (par 25 cents). P'ice—$1 per share. Pro¬
ceeds—For inventory, equipment, working capital, etc.
Office—901 S, Lake Street, Farniington, N. Mex. Under¬
writer—Invfestment Service Co., Denver, Colo.
,
in
connection
/
therewith.
29
Underwriter—
\;.%/;/:/, /;
.
issue.
(See
Equity
June
8
of
(letter
General
Corp.
notification)
—To be applied to pay
$195,000
filed
$5,000
Realty Co.
$977,500 of limited partnership interests.
per unit. Proceeds — For purchase of the
Dexter Horton Building in Seattle, Wash.
—Lifton Securities,
•
Gilbert's
Underwriters
Inc., .and Hechler-Weintrow Securi¬
ties, Inc.
Inc.
(7/20-24)
June 11 filed $4,400,000 of 20-year 5V2% convertible de¬
bentures. due July 15, 1979 and 1,056,000 shares of com¬
stock (par one cent) to be offered in units consisiing of $50 principal amou/it .of debentures and 12 shares
of common stock. Price—$51.20 per unit. Proceeds—For
repayment of notes; to develop and construct shopping
centers and a super-market under existing
purchase
contracts a«d for working capital.
Office—93-02 151st
Street, Jamaica. N. Y, Underwriter—S D. Fuller & Co..
mon
New York.
•
shares of series
stock for each three
1 and/or series 2
contracts.
16th
804
D. C.
•
General
filed
29
securities,
of
common
and
together
with
seeking
Corp.
of
registration
Equity General, 500,000 shares
preferred stock;
common stock.
the owner of 5,343,220 shares of
follows:-
as
stock and
149,478 shares of
Development Corp., 500,000 shares of
The
Equity
Corp. is
General common
Equity
in
therefor,
exchange
General is the
Corp.
common
shares
stock
and
proposes
to
offer
to
the
owner
on
a
one-for-one
basis.
Equity
ofy£,399,504 shares of Development
and proposes to offer 500,000 of such
holders of Equity General common in
exchange therefor, on a one-for-one basis. The Board
of Directors of Equity General has authorized the issu¬
ance
of
(par $1)
a
maximum of 149,478 shares of Equity General
and
First
4
National
Life
Insurance
Co.
(7/15)
filed
173,286 shares are to be offered to certain officers and
key employees of Flintkote and its subsidiaries under
the
"Flintkote
-
Stock
Option Plan"; 16,771 shares are
granted by Flintkote in substitution
for options granted by Orangeburg Manufacturing Co.,
Inc., to certain of its officers and key employees; andi
37,311 shares are subject to options granted in substitu¬
tion of options granted by Blue Diamond Corp. to certain
of its officer and key employees. Flintkote acquired all
the assets of Orangeburg in December, 1958, in exchange
for 132,416 shares,of preferred stock; and on May 14,
1959, it issued 615,617 common shares upon the merger
subject
*
Development
statements
*
Flintkote Co., New York
May 20 filed 227,368 shares of common stock, of which.
Corp.
registration
of
Inc.
8,000 shares of common
75,000 shares of common stock (par $4).
Price—$12 per share. Proceeds—To increase capital and
surplus. Office—1230 East Camelback, Phoenix, Ariz.
Underwriter—Blair & Co., Inc., New York.
Underwriter—
v
Credit Bureau,
(letter of notification)
to be offered for subscription by stock¬
employees. Price—At the market. Office—
American Title Bldg., Detroit, Mich. Underwriter—
June
than
W., Washington,
N.
Office —110 North
None.
subordi¬
$1,500 for single premium
Proceeds—For investment, etc.
Office—2480
Street,
June
1
stock
offered for sub¬
scription by common stockholders of record June 5,
1959, at the rate of $100 of debentures for each eight
shares of common stock then held; rights to expire on
June 3t). Price—At par. Proceeds—To repay outstanding
bank loans and for general corpbrate purposes. Office—
Carew Tower, Cincinnati, Ohio. Underwriter—None.
less
To'selling stockholders.
Drive,
First National
June
nated debentures due July 1, 1979, to be
no
—
Beverly Hills, Calif.
Underwriters —
Union Securities & Co., New York; and
William RStaats & Co., Los Angeles, Calif.
holders
and
(7/15)
Eastman Dillon,
unsubscribed shares to other stock¬
Rights expire 30 days from offering date.
Price—$1 per share.
Proceeds—For working capital.
Office—333 S. Farish Street, Jackson, Miss. Underwriter
convertible
Financial Corp.
3,000.000 outstanding shares of common
(no par). Price—To be supplied by amendment.
Doheny
stock held;
4%%
the
filed
11
Proceeds
holders.
Emery Industries, Inc.
May 21 filed $6,103,700 of
Peerless Commodity Trust, new name of
First Charter
stock,
basis of one share of series 3
by stockholders on the
Commodity Fund
Boston
under
Fund.
(letter of notification) 250,000 shares of series 3
stock (no par) to be offered for subscription
common
First
See
June
500,000 of such shares to the holders of Equity common
-
Properties,
•
convertible
Emerite Corp.
Jan. 19
new
writer—None.
time at $5 per share. Price—
At par. Proceeds—For working capital.
Office—8 First
National Bank Bldg'., Butte, Mont. Underwriter—None. °
^
15
—
pruchase
Of 5-year 6%
$100, $500 and $1,000 each.. Debentures are
common
Price—To public, $3 per share. Proceeds
interest due on properties and to
properties and for working capital. Under¬
the organizers.
Inc.
into common stock at any
America,
Dexter Norton
Price
class B
convertible debentures to be offered in denominations of
Equity
below.)
June
has
;
Laboratories,
Research
None.
v-.
Registered
as an incentive to management. The company
agreed to issue to the organizers 200,000 shares of
common stock: and 100,000 class B shares have
been set aside for issuance to keep personnel other than
company
share. Proceeds—To
purchase equipment and for working capital. Office—
Bristol, Pa. Underwriter—Harrison & Co., Philadelphia,
Development Corp. of America
June
of which
Instruments, Inc. (7/13)
(letter of notification) 100,000 shares of common
contracts
recently consummated merger of Real Estate
Equities, Inc., into DCA and the plan of reorganization
/''// y/::V
Fidelity Investment Corp., Phoenix, Ariz.
1,799,186 shaves of class A common stock,
1,700,000 shares are to be offered publicly, and
the remaining 99,186 shares have been subscribed for
in consideration for services rendered in organizing the
June 29 filed
(par 50 cents). Price—$3 per
Ellis
Co.
Sts., Carlisle, Pa. Underwriter—Winslow, Cohu & Stet¬
son, Inc., New York, N. Y. Offering—Postponed indefi¬
nitely.
*
/}'://%%/,
Supply Co.
common
Pa.
Co. of Clarinda
notification) 100,000 shares of common
stock (no par). Price—$3 per share. Proceeds—To ac¬
quire all of the capital stock of Byer's Lumber Co., Inc.
and for working capital. Office—North West & Lincoln
;
with
JNone.
Federal Equipment
people engaged in the field of education and
expansion of the company's capital structure. Office
—1704 11th Ave., South, Birmingham, Ala. Underwriter
if Elion
Co., Inc., botlr of New York.
Farmers Mutual Telephone
May 22 (letter of
for
June 26
stock (par five
pany's books at the end of each 30-day period on a pro
rata basis of one-half share for each share now held. Un¬
subscribed shares will be offered to the public. Price—
Estimated at $140 per share. Proceeds—Working capital,
etc. Office—106-108 W. Chestnut St., Clarinda, Iowa.
chases to
stock
Newark, N. i.
May 19 (letter of notification) 1,531 shares of common
stock (par $100) to be offered to stockholders for a pe¬
riod of 60 days at book vJlue as reflected by the com¬
$250,000 of 15-year 5%
Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
consummated
'■
Investment Corp., of Alabama
Electric City
Un¬
Offer¬
(7/15)
Inc.
Industries,
220,000 shares o'f common
filed
23
curities
general obligation debentures to be offered in multiples
of $50.
Proceeds—To make loans for automobile pur¬
—None.
10
cents). Price—$6 per share. Proceeds—To be used for
purchase and construction of machinery and equipment.
Underwriters—Charles Plohn & Co. and Netherlands Se¬
share. Proceeds—To i'epay loans, to acquire prop¬
erty and equipment, and for working capital.
Under¬
writer—Charles Plohn & Co., New York.
of notification)
(par
standing bank loan; and the balance will provide work¬
ing capital to finance increased inventories and accounts
receivable.
Office—98 Berriman St., Brooklyn, N. Y.
Underwriter—L. D. Sherman & Co., New York.
per
(letter
stock
Island City, N. Y.
Faradyne Eiectronics Corp.,
(7/20-24)
Engineering
8
common
29
June
Associates, Inc. (7 20)
June 15 (letter of notification) 100,000 shares of com¬
mon stock
(par $1). Price—S3 per share/Proceeds—For
working capital. Office — 225 O'Brien Highway, Cam¬
bridge 41, Mass.
Underwriter—Schirmer, Atherton &
June
of
shares
per
filed 150,000 shares of common stock (par 20
cents). Price—S3 per share. Proceeds—To retire an out¬
Drexelbrook Associates
July 8 filed 140,000 shares of common
175.000
Electronic
Fanon
May
May 22 filed $2,000,000 of partnership interests, to be
offered in units.' Price—$10,000 per unit. Proceeds—To
be
used
for
various acquisitions. . Office —r Broad &
Chestnut Streets, Philadelphia. Pa. Underwriter-*—Ndiie,
^ Edwards Steel Corp.,
filed
2
Office—36-35 36th,Street, Long
July 6 filed American depositary receipts for common
capital stock. Depositary—The Chemical Corn Exchange
Bank of New York.
Dunn
:
.
derwriter—Maltz, Greenwald & Co., New York.
ing—Expected in late August.
; .v/ >
Bank Aktiengesellschaft
if Dresdner
■
W., Washing¬
N.
share.
Proceeds—For purchase of
machinery and equipment for the Pottsville plant, to
pay the principal on a 5% note due Sep.t. 1, 1960, and
the balance will be added to the company's general funds
and will
be available for general corporate purposes.
reserved
the
n':
.
Washington,
Inc.,
Distributors,
Connecticut Ave,,
Office—1028
ton, D. C.
—None.
oversubscription privilege. Rights ex¬
an
a
record
share for each
new
July 17, 1959. Price
on
Proceeds—For
of
C.
Price—To
• Extrudo-Film Corp.
purchase equipment, aTrd to
(par $50 )to be offered
stock
Underwriter—ESA
Mo.
D.
cents). Price—$3
&
Inc.
by amendment. Proceeds—For investment.
Adviser—Yates, Heitner & Woods, St. Louis,
July
Educators
May 22 filed 250,000 shares of common stock (par 25
cents): Price—$3.371/2 per share. Proceeds—For general
corporate purposes. Office—54 Kinkel St., Westbury,
supplied
Investment
if Dover
other semi-conductor
and
rectifiers
be"
cents).
writer—-Simmons
construction oi
and acquisition
and equipment in Arizona for production oi
Fund,
June 29 filed 2,000.000 shares of capital stock.
Microwave, Inc. (8 25)
100,000 shares of common stock (par 10
Price—$3 per share. Proceeds—To iqptire loans,
Office—252 East-Third
addition to a
an
common
if Douglas
Julv 2 filed
to
$/50,-
plant for
of
shares
300,000
filed
Mutual
ESA
Texas
stock (par 50
;ents). Price—$3 per share. Proceeds—For acquisition
it undeveloped real estate, for organization or acquisidon of consumer finance business,
and balance to be*
jsed for working capital.
Underwriter — Investmem
Service Co.) Denver, Colo., on a best efforts basis.
6
/an.
to options
of Blue Diamond into Flintkote.
Flintkote Co.
June
4
filed
143,789 shares of
common
stock
(par $5).
This company on June 17 will acquire all the assets of
The Glen Falls Portland Cement Co. (of'New York) in
exchange for 369.858 shares of Flintkote Co. The 143,789
of stock are to be - received by certain share¬
shares
holders of Glen Falls.
current market
Exchange.
or
Price—To be related to the then
current price on the New York Stock
Proceeds—To
selling
stockholders.
Under¬
writer—None.
preferred stock ijti exchange for shares of preferred stock
of Development Corp., on the basis of one share of
Equity General.preferred for two shares of De^oiorient
+ Florida Water & Utilities Co., Miami, Fla.
July 8 filed 86,000 shares of common stock, of which
65,000 shares are to be offered for public sale for the
Corp. preferred.
account
.
Office—103 Park Ave., New York City.
■
/
A
of
the
company
and 21,000
shares for the
ac-
Volume
190
Number 5862
.
.
The Commercial and Financial Chronicle
.
count of two selling stockholders. Price—To be
supplied
by amendment. Proceeds—To be used to reduce indebt¬
edness and
& Hough,
increase
working capital. Underwriter—Beil
Inc., St. Petersburg, Fla.
Fluorspar Corp. of America
1
Feb. 5 (letter of notification—as amended)
300,000< shares
of common stock.
Price—At par ($1 per share). Pro¬
ceeds—For mining expenses.
Office—4334 S. E. 74th
Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties, Inc., 4314 N. E. 96th Ave., Portland. Ore.
Foundation
June 18 filed
Price—At
Balanced
common
Proceeds—For
stock
(par $1).
investment.
Office—
St., Nashville; Tenn. Investment Adviser—J.
C. Bradford & Go., Nashville, Term.
Distributor—Capital
Planning Services, Inc.
'
Foundation Stock Fund,
'
Inc.
June 18 filed 100,000 shares of common stock
(par $1).
Price—-At market
Proceeds:—For investment. Office—
418 Union St.,
Nashville, Tenn. Investment Adviser— J.
C. Bradford & Co., Nashville, Tenn.
Distributor—Capital
Planning Services, Inc.
Fran-Well, Inc.
May 25 (letter of notification)
stock. Price—At par
Business, Inc.
(7/15)
May 8 filed 500,000 shares of class A stock (par 50 cents).
Price—$1.50 per share. Proceed#—For working capital.
Office—120 East 41st Street, New York. UnderwritersJoseph Mandell & Co., Inc., New York; and Robert L.
Ferman & Co., Inc., Miami, Fla.
Futterman-Dupont Hotel Co.
May 22 filed $1,706,900 of Limited Partnership Interests,
to be
offered in units. Price—$25,000 per unit. Proceeds
►-To repay monies borrowed for the
purpose of closing
title and paying incidental expenses in
acquiring the
Dumont Plaza Hotel in Washington, D. C. Office—580
Fifth Avenue, New York, N. Y. Underwriter—None.
•
Gate
City Steel Co., Inc., Omaha, Neb.
6% sinking fund debentures,
series A, due May 1, 1969, of Which
$350,000 will be
offered, on an exchange basis, for a like amount of 5%
May 26 filed $1,250,000
debentures which the company plans to retire.
maining
$900,000
debentures
will
be
The
re¬
offered
publicly.
Price—Par. Proceeds—For advances to
company's sub¬
sidiary, Moffett Engineering, Inc.— Underwriter—First
Trust Co., of Lincoln, Neb.
* /
' Y
General Aniline & Film Corp., New York
Jan. 14, 1957 filed 426,988 sbarea of common A stock
(n«
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 biddinf
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton
Corp.
(jointly);
Kuhn, Loeb
&
Co.;
Lehmar
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45
p.m. (EDT) or
May 13 at Room 654, 101 Indiana Ave., N. W., Washing
ton 25. D. C
but bidding has been postponed
General
Tenn.
Investment
common
stock
Co.,
Memphis,
Statement effective April 24.
General Precision Equipment
May 26 filed
minimum
a
of
Corp.
105,928
shares
cumulative convertible preference stock ($50
of
($2.93)
liquidating
value) being offered for subscription by holders of
com¬
stock in the ratio of one share of new preferred
for each 11 shares of common stock held and by holders
of $1.60 preference series in the ratio of one new share
for each IGVz shares of $1.60 preference stock held on
mon
June
25;
rights to expire on July 13. Price—$50 per
working capital. Underwriters—
The First Boston Corp., and Tucker,
Anthony & R. L.
Day, both of New York.
share.
Proceeds—For
General Stores Corp.
May 21 filed 1,884,278 shares of
to be sold from time to time
change.
the
on
common
stock
(par $1)
the American Stock Ex¬
Price—Relating to the then current market
American
stockholders.
Stock
of
the
Government
Employees Variable Annuity Life
Nov. 13 filed
2,500,000 shares of common stock (par $1)
by company viz: (1) to holders of common
(par $4) qf Government Employees Insurance Co.,
to be offered
stock
the basis of
on
warrant per
share of stock held (lrv,
334,570 shares are now outstanding); (2) to holders of
common
stock (par $1.50)
of Government Employees
Life Insurance Co., on the basis of 1 Vz warrants per share
of stock held (216,429 shares are now
outstanding); and
(3) to holders of common stock (par $5) of Government
one
Employees Corp.,
on the basis of Vz warrant per share of
stock held fas of Dec. 31, 1958 there were; 143,703 shares
^of stock outstanding and $589,640 of 5% convertible
Exchange;
Proceeds —To
Underwriter—None.
at
mon
$28.0374
cap¬
1967, convertible int^ shares of com¬
on
selling
stiare.
per
If all these debentures were/
converted
a
into common stock prior to the record date,
total of 164,733 common shares would be outstanding.
Price—$3
per
share. Proceeds—For capital and surplus.
Office—Government Employees Insurance
Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed.
Grace
(W. R.)
f"
>
& Co.
June 16 filed 126,000 shares of common stock to be issued
in connection with the 'acquisition
by the company of
Hatco Chemical Co.
Great Western
June
Life Insurance
Co.
(8/28)
filed 500,000
29
shares of common stock and op-V
tions to purchase 200,000 additional shares of outstanding x
stock, to be offered in units, each consisting of five
shares of
stock and
common
an
optionrto purchase two
at
the
rate
of
one
unit for
each
15
shares
hclcL,
shares
on
or
about
Aug. 28, 1959; rights to expire on or about Sept.
.28, 1S59. The options evidence the right to purchase the
200,000 outstanding shares owned by Great Western
Building & Loan Corp. Price—To be supplied by amend¬
ment.
Proceeds—For
loan
to
the, subsidiary
(fGreat
Western Building & Loan Corp.); and the balance will
used
be
to
increase
capital and surplus. Office—101111 N. W.
Second St., Oklahoma City, Okla.
Under¬
writers—G. J. Mitchell, Jr. Co., Washington, D.
C.; and
Purvis & Co., Denver, Colo.
Griggs Equipment Inc., Helton, Texas (7/14)
(letter of notification) 18,891 shares of common
stock (par 50 cents). Price—At the market (estimated
at $6.50 per share). Proceeds—To go to a selling slock
holder.
Underwriter—Eppler, Guerin & Turner, Inc.,
Dallas, Texas.
Feb.
4
cents).
America, Inc.
filed
250,000 shares of common stock (par 10
Price—At market.
Proceeds-—For investment.
Office —1825
Connecticut
Washington, D. C.
Advisory
Service,
Washington, D. C. Underwriter—Investment Manage¬
ment Associates, Inc., Washington, D. C.
Investment
Advisor
—
Avenue,
Investment
Hamilton
Cosco, Inc., Columbus, Ind/ (7/15)
50,000 shares of common stock (no par—
value per share). Price—To be supplied by
amendment. Proceeds—To selling stockholders.
Underwriter^City Securities Corp., Indianapolis, Ind.
June
3
filed
$3 stated
Hancock
(J. W.)
Inc.
June 25 filed 200,000 shares
by amendment.
Proceeds—To be added to the general funds of the com¬
pany and be used primarily to finance electric transactor
system developed by its Stromberg division. Underwriter
.—Kidder Peabod.v & Co., New York.
General Underwriters Inc.
April 6
(letter of
notification) 225,000 shares of com¬
(par 25 cents).
Of the total, 195,000
mon
of 6% cumulative convert¬
stock (par $2) and 100,000 shares of com¬
stock (par 10 cents). The company proposes to offer
mon
200,000 preferred shares and 50,000 shares of the common
in units consisting of 4 shares of preferred and one share
of common.
The remaining 50,000 shares of common
stock are to be offered to holders of outstanding 4%
subordinated debentures at the rate of
face ^amount
$.50
of
such
cancellation. Proceeds—To
one
debentures
be
share for each
surrendered
for
used for
working capital
Underwriters—Kenneth
Hathaway Industries, Inc.
outstanding shares of common stock.
shares are part of the 672,990 shares (53.43%)
June 9 filed 300,000
These
held- by
Seaboard Allied Milling Corp.
Seaboard plans
to offer 100,000 shares lor sale to the business associates
and employees of Hathaway Industries at $6 per share.
capital stock
shares are to be offered for the account of the company
and 30,00.0 shares for a selling stockholder. Price—$1
per
share. Proceeds—For furniture inventory and improved
In
merchandising methods, to finance the real, estate depart¬
stockholder,
ment
Hathaway
and
insurance
policy loans. OfficeZ-211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff, Ark.
Georgia International
Atlanta, Ga.
Life
Insurance
Robinson-Humphrey
Co.,
Inc.,
At-
lan. Ga./and The Johnson Lane, Space
Corp., Savannah,
Ga.
Y
Gold
Medal
Y
-
'
Packing Corp.
common
Seaboard
stock
purchase
(par
warrants.
one
Of
Allied
filed
26
Calif. Underwriter—F. S. Smithers & Co., San Francisco
and New
Yo|fc.
Hickerson
v
Co., Inc.
(7/30)
March 11 (letter of notification) 285,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—To»
pay existing liabilities; for additional equipment; antf
for working capital.
Office—East Tenth Street, P. CL
Box 68^ Great Bend, Kan.
Underwriter—Birkenmayer
& Co., Denver, Colo.
Bros.
Truck
•
Highway Trailer Industries, Inc.
9 filed 1,105^294 shares of common stock to be
offered for subscription by present stockholders at the
rate of one new share for each two shares hekt (with an
June
oversubscription
privilege).
Proceeds—To
amendment.
Price—To
be
Milling
.
Corp.
Office—
be
supplied bjr
equipment
used for inventory and
used
and
for
new
pl^nt improvement; to be
production requirements of the Hazleton, Pa., plant and
the increased production of the Edgerton, Wis., plant;
and for discharge of bank loan and other corporate pur¬
poses. Office—250 Park Ave., NewWork, N. Y.
Agents
—Allen & Co. and Van Alstyne, Noel & Co., both of New
York. Statement
t© be amended.
Hofman
June
stock
Laboratories, Inc. (7/15Y
12 (letter of notification) 50,000 shares of common
(par 25 cents). Price—$6/per share. Proceeds—To
loan from Hillside National Bank and for gen¬
a
corporate purposes. Office — 5 Evans Terminal,
Hillside, N. J. Underwriter—Myron A. Lomasney & Co.,
New York, N. Y.
Holmes
(D.
H.)
Co. Ltd.
June 5 filed 14,780 shares of capital stock to be offered
to present stockholders' on the basis of one new share
for each 14 shares held of record June 25, 1959.
Price—
$37.50 per share. Proceeds—For expansion program,'for
working capital and other corporate purposes.' Office—
New
Orleans, La.
Underwriter—Arnold & Crane, New
'/Y,
'
"Y ^
Orleans.'
Honolulu Construction
&
Draying Co., Ltd.
vJune 16 filed 25,000 shares of
common stock, to be ofsubscription by stockholders of record April.
1959, on the basis of one new share for each five
'shares then held. Rights to expire on or about July 30.
Price—$40 per share. Proceeds—To be applied to repay¬
>recl
for
ment of
bank loans and for oompany's capital expendi¬
and investment. Office—Honolulu, Hawaii-
Underwriter—None.
Radio
Hudson
&
Television
Corp.. (7/27-31)
shares of capital stock, of which
125,000 shares are to be offered for the account of the
company and 75,000 shares for the account of a selling
stockholder. Price—$5 per share. Proceeds—To be util¬
ized in reduction of obligations, the acquisition and/or
development of additional inventory lines, warehousing
facilities and sales outlets; the adoption of various sales
promotional programs, and as additional working capital. Office—37 West "65th St., New York, N. Y. Under¬
writer—J. A. Winston & Co., Inc. and Netherlands Se¬
June
3
filed
200,000
curities Co., Inc.
Hunter
Underwriter—None.
Heartland Development Corp.
June 24 filed
/
22,820 shares of 5% convertible preference
(par $12). Price—Par. Proceeds—For general cor¬
Office— 40 Beaver Street, Albany, N. Y.
Underwriter—None.
Heliogen Products, Inc.
22, 1958 (letter of notification) 23,800 shares of
common stock (par $1). Price—$5 per share.
Proceeds—
Oct.
For
ix&yment of past due accounts and loans and general
Office—35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., 11 Broad¬
way, New York 4, N. Y.
\
*
•
Mountain
Development Corp.,
Hunter, N. Y. (7/15)
\
5 filed $690,000 of 6%
subordinated debentures
due July 1, 1969, and 69,000 shares of common stock (par
10 cents) to be offered in units, each unit consisting of a
$50 debenture and 5 shares of common stock. Price—$50
June
per
unit. Proceeds
For purchase of equipment, for
—
building of lodge, and for other corporate purposes. Underwriter—Myron A. Lomasney & Co., New York./
I C Inc.
June
29
(8/28)
600,000 shares of common stock. Price—
$2.50 per share. Proceeds—To further the Corporate pur¬
poses and in the preparation of the
concentrate and
enfranchising of bottlers, the local and national pro¬
motion and advertising
of its beverages^ and where
necessary to make loans to such bottlers, etc. Office—
704
Equitable Bldg.,
vis
& Co. and
Amos
Denver, Colo. Underwriters— Pur¬
C. Sudler & Co., both of Denver.
Colo.
•
Ideal
Precision
Meter
Co.,
Inc.
(7/13-17)
May 19 filed 137,500 Shares of common stock (par 10
cents). Price—$3.75 per share. Proceeds—For planned
expenditures and working capital, and for payment of
certain indebtedness. Office
126 Greenpoint Avenue,
Brooklyn, N. Y. Underwriter—Charles Plohn & Co.,New
York.
'
filed
—
St., Syracuse, N. Y.
working capital.
June 18 filed 572,500 shares of common stock
cent), and 50,000
American
porate purposes.
June 30 filed 1,665,000 shares of common stock. Price—$5
per share. Proceeds — To increase capital and surplus.
Underwriters—The
addition, Seaboard „may wish to sell publicly the re¬
200,000 shares, or a portion thereof, on the
Stock Exchange, or otherwise, at prices cur¬
rent at the time of such
sales.
Proceeds—To selling
maining
stock
Co.,
Products, Inc. (7/29)
50,000 shares of capital stock. Price—To
be supplied by amendment. Proceeds—For working cap¬
ital and general corporate purposes. Office—Berkeley,.
ible preferred
and general corporate purposes.
supplied
Hexcel
_
June
ture program
N. J.
be
>
•
June 10
tures
Price—To
-
Hemisphere Gas & Oil Corp.
April 27 (letter of notification) 300,000^ shares of com¬
mon stock.
Price—At par ($1 per share).
Proceed^—
For development oi oil and gas properties.
Office—702
American Bapk Building, Portland 5, Ore. Underwriter
—D. Earle Heftsley Co., Inc., 4444 California "Avenue,
Seattle, Wash.
\
:
eral
common
Kass, Nassau Securities Service and David Barnes & Co.,
Inc., all of New York; and Palin Securities, West Orange,
1979.
Stock, Option Plan.
by holders of the 1,500,000
^General Time Corp.
July 8 filed $6,000,000 of convertible subordinated deben¬
due
common stock, for issu¬
pursuant to options granted officers ancl key em¬
ployees of the company under the company's ^Restricted
ance
retire
outstanding
41
★ Heller (Walter E.) & Co.
July 2 filed 226,000 shares of
additional shares, the units to be offered for subscription
Growth Fund of
(par one cent). Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
Securities
account
Co., New York. Name
Change—Formerly Eastern Packing Corp.
Merchandising Corp., Memphis, Tenn.
Feb. 18 filed 250,000 shares of class "A"
writer— Union
the
writer—Mortimer B. Burnside &
ital debentures due
300,000 shares of com¬
($1 per share). Proceeds—For
working capital. Office—100 E. Miiiner St., Oildale, Calif.
Underwriter—None.
Funds For
will be sold for
400,000
110,000 by certain stockholders; 12,500 for the
underwriter; and the remaining 50,000 shares are pur¬
chasable upon exercise of the warrants. Price—$1.25 per
share. Proceeds—For repayment of debt; purchase of
equipment and facilities and other general corporate
purposes. Office—614 Broad St., Utica, N. Y. Under¬
Insurance Co.
418 Union
mon
shares
company;
.
Fund, Inc.
100,000 shares of
market.
the
(141')
•
Independent Telephone Corp.
*
June 29 filed 13,080 shares of 5% cumulative convertible
preferred stock, series A ($10 par), and 806,793 shares
of common stock, together with warrants for the pur¬
chase
of
50,000 common shares.
According to
the
prospectus, 80,000 common shares are to be offered to
nine payees of non-assignable convertible notes out¬
standing in the amount of $500,000 for conversion of
such notes into common shares at a conversion price
Continued
on
page
42
v
The
42
(142)
Continued from page
of
perlshare.
$6.25
41
The
.
.
and
13,080 preferred shares
8,175 common shares are to be offered in exchange for
the outstanding 327 shares of gommofr stock of Farmers
Union Telephone Co., a New Jersey corporation, on the
basis of 40 shares of preferred and 25 shares of common
for each share of common
capital stock of Farmers
issuing company further proposes to
The
Union.
offer
96,604 common shares to holders of its outstanding stock
of record June 30, 1959, for subscription at $6.25 per
shc^re on the basis of one new share for each two shares
then
held.
Proceeds—For working
capital.
Office—
South St., Dryden,
25
Underwriter—None.
N. Y.
Leasing
(letter
1
of
Corp.
notification)
Plywood Co., Inc., Jamaica, N. Y.
cumulative preferred
stock ($10 par—convertible until Aug. 31, 1969;, with
common
stock purchase warrants. Each share of pre¬
ferred will have one "A" and one "B" warrant attached,
Industrial
June 25 filed
60,000 shares of 6%
entitling the holder to purchase
share of common
(for each two "A" warrants) at $12 per share, expiring
June 30, 1961; and for each two "B" warrants held at
$14 per share, expiring June 30, 1961. Price — $10 per
one
Proceeds—Toward reduction of short-term
share.
pany's 1959 construction program or to reimburse the
company's treasury for expenditures for that purpose.
Underwriters—To be determined by competitive bid¬
Probable bidders: Halsey, Stuart & Co, Inc.; White,
& Co.;-Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co.; Salomon Bros. & Hutzler and
Merrill Lynch, Pierce, Fenner & Smith, Inc. (jointly)..
Bids—Expected to be received up t© 11 a.m, (EDT) or.
July 14, at. offices of General Public Utilities Corp., 67
Broad Street, New York City.
Bank, Washington, D. C.
of notes (series B, $500,000, two
Dec. 29 filed $5,000,000
3% per unit; series C, $1,000,000, four-year 4% pei
unit; and series D, $3,500,000, 6-year, 5% per unit). Pri<x
—100% of principal amount.
Proceeds — For workini
year,
Wash¬
International
Railroads
Weighing
(letter of notification) 82,626* shares of com¬
mon stock
(par $1) to be offered for subscription bj
common stockholders at rate of one new share for each
April 16
held. Price—$3
four shares
per share. Proceeds — For
development costs and working capital
Office—415 Spruce St., Hammond, Ind.
Underwriter—
research
and
None.
•
International
La
Voz
International Tuna Corp. (7/30)
April 3 (letter of notification) 175,000, shares of claw
A common stock (par 50 cents).
Price —$1 per share
Proceeds—For equipment and working capital.
Offic#
—Pascagoula, Miss. Underwriter—Gates, Carter & Co.
Gulf port, ^Miss.
\
*:
Interstate Life & Accident Insurance Co.
(8/3-17)
June
*
filed
26
350,000
outstanding
Price—To be supplied
stock.
shares
of
common
Proceeds
—to selling stockholders.
Office—540 McCallie Ave.,
Chattanooga, Tenn. Underwriter — Equitable Securities
Corp., Nashville and New York.
by amendment.
Investment Life & Trust Co.
(letter of notification) 56,185 shares of common
(par $1) being offered first to stockholders; un¬
subscribed shares will be offered to, the public. Record
date is June 30,1959; rights expire July 14, 1959. Price—
To the stockholders, $3.80 per share; to the public, $4
per share. Proceeds—For working capital. Office—123 S.
Stock
Main St.,
Mullins, S. C. Underwriters — Frost, Read &
Simons, Inc. and Silcox & Johnson, both of Charleston,
S. C.
Investors
Feb.
17
Funding Corp. of New York
filed $500,000 of
due July
10%
(7/15-20)
subordinated debenture
Office—511 Fifth Ave., New York, N. Y.
writer—None.
ment.
Under¬
Co.
Meg Products Co., Inc.
24 (letter, of notification) 120,000 shares of com¬
stock (oar $1). Price—$2.50 per share. Proceed^—
mon
inventories, machinery and equipment, retire exist¬
promissory notes and additional working
capital. Office — 3340 W. El Segundo Blvd., Hawthorne*
Calif.
Underwriter—First Angeles Corp., Beverly Hills,
For
ing loan and
.
California.
of
basis
one
Co.
common
for each share held
share
new
Lieco, Inc.
June 12
stock
to
★
Underwriter—None.
Office—1950 Broad St., Regina, Sask., Can.
Underwriter
—
Laird
&
Rumball, Regina, Sask.,
Can.
Jamaica
Development Co.,
June 15 filed 105,000 shares of common stock.
Price—$10
per share. Proceeds—To be used for the purchase of land,
cattle, machinery and equipment, fishing lodge, and
development expense. Office—1841 North Meridian St.,
Indianapolis, Ind. Underwriter—None.
Jefferson Wire & Cable Corp. (7/13-17)
May 27 filed 100,000 shares of common stock (no par).
Price—$3.75 per share. Proceeds — To pay off various
indebtedness, for purchase of machinery, equipment and
raw
materials, for plant facilities, for sales promotion,
and for working capital.
Office—Sutton, Mass. Under¬
writers—Charles Plohn & Co.
and
Netherlands
Securi¬
ties Co., Inc., both of New York.
•
Jersey Central Power & Light Co.
(7/14)
May 21 filed $8,000,000 of first mortgage bonds due July
1, 1989. Proceeds—To be applied to the cost of tl>e com¬
employees of the company and its subsidiaries under,
Stock Option Plan.
Micronaire
(letter of notification) 100,000 shares of common
cents). Price—$3 per share. Proceeds—
machinery and laboratory equipment; for consolida¬
of operations in one plant; for retirement of cor¬
porate debts and for working capital. Office—47 Bergen
St., Brooklyn, N. Y. Underwriter—Netherlands Securi¬
ties Co., Inc., and J. A. Winston & Co., Inc., New York,
shares (par 10 cents) and
50,000 one-year warrants for the purchase of common
stock, to be offered for public sale in units of 100 shares
of
includes
:
stock and 25 warrants,
common
an
Equipment Corp., Renovo, Pa.
June 1 (letter of notification) 150,000 shares of common
The registration also
.
additional 200,000 three-yerir warrants, exer¬
$3j of which 150,000.have been issued to cer¬
cisable at
stockholders
tain
common
employees.
and
Underwriter
Ave., New York.
Corp., New York.
per unit.
for expansion of
Office—79 Madi¬
Price—$275
Proceeds—To, discharge indebtedness;
sales efforts; and for working capital.
son
Pools
Products Corp.
.
filed 200,000
1
tion
~
Electro Medical
7/14-16)
■
June
(7/13-17)
Y.
Corp.
its Restricted
(par 10
Lifetime
& Thermit
★ Metal
For
N.
of California
Corp.
July 1 filed 45*000 shares discommon stock, to be offered
during
the period ending June 25, 1959. Price—$5 per share to
stockholders; $6 per share to the public. Proceeds—TO
increase capital and surplus.
Office — 1706 Centenary
Boulevard, Shreveport, La.
Acceptance
May 15 (letter of notification) $80,000 of 12-year 5%%
capital debentures. Price—At face amount. Proceeds—
For working capital.
Office — 333 Montgomery Street,.
San Francisco, Calif.
Underwriter—Guardian Securities
Corp., San Francisco, Calif.
"
stock, to be of¬
subscription by holders of outstanding stock on
fered for
the
Insurance
"
-
Mercantile
Underwriter—None.
Life
14
June
and
filed 200.000 shares of
..
cents).
Price—At par.
National
.
filed 200,000 shares of common stock, (par 20
Price—$3.75 per share.
Proceeds—For general
corporate purposes. Office — 42 Broadway, New York,
N. Y. Underwriter—Amos Treat & Co., Inc.. New York.
May
Laymen Life Insurance Co.
«
?
May 27 (letter, of notification) 60,000 shares of common1
stock (par $1) to b„e offered to stockholders of record
on May 29, 1959 on a share-for-share basis.
Rights ex¬
pire June 30, 1959. Price—$5 per share. Proceeds—For
working capitalAOffice—1047 Broadway, ^nderson, Ind.
June 11
;
,..
writer—None.
—
General Investing
-ZY;'■!
Electronics Corp.
stock
★ Microwave
For
.July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures due July 1, .1969 together with 250,000 shares of
common stock
(par 10 cents) to be offered in units of
$10,000 principal amount of debentures and 5,000 corn-
(par 10 cents). Price—$2 per share. Proceeds—
purchase of "machinery and equipment; advertising
and working
capital.
Underwriter—First Washington
Corp., Pittsburgh, Pa.
★ Loomis-Sayies Fund of Canada Ltd.
July 6 filed 800,000 shares of common stock, to be offered initially at $25 per share through Loomis, Sayles &
Co., Inc., to clients, officers, directors and employees of
the
The shares
latter.
of
also
are
to
be offered
to
share¬
Fund, Inc., of record
After July 31, 1959, the offering price will
After Sept. 15, 1959, shares will be
offered only to shareholders of Loomis, Sayles & Co.,
Inc., and its affiliated companies. Proceeds—For invest¬
Loomis-Sayies Mutual
July 15, 1959.
be
asset
net
ment.
•
value.
/
Mining Cprp.
Sept. 29 filed 350,000 shares of common stock. Price—$1
per share.
Proceeds—For the acquisition of properties
under option and for various geological expenses, test
drilling, purchase of equipment, and other similar pur¬
poses.
Offices—Wilmington, Del., and Emporium, Pa.
Underwriter—None.
Statement effective.
Properties, Inc.
(7/29)
filed 500,000 scares of class A common stock.
Magnuson
June
26
be
supplied by amendment. Proceeds—$443,071 is to be expended during the period ending Aug. 31,
1960, for mortgage payments and releases; $465,000 will
be paid on notes acquired by members of the Magnuson
family in the transfers of subsidiaries'and properties to
the
coppany; $350,000 will be used to pay off an exist¬
a mortgage on the Florida Shores
properties in Edgewater, Fla., aiid an assignment of a lot
ing loan secured by
contract receivable;
about
$150,000 for
the
shares. f$n additional 138,000 shares in ay be issued
J„T10n
in connection.
Mid-America Minerals,
in. Green
of the interest
Millsap Oil & Gas Co.
Dec. 23 filed 602.786 shares of common stock.
will
added to the company's general
available, together with funds re¬
payments on lot sales, principally for the
development of the Palm Shores properties (at Ea*r"~
Gallie)
and for further acquisitions, and for use as
and
will
be
be
from
working capital.
Office—20 S, E. 3rd Ave., Miami, Fla.
Underwriter—Blair & Co., Inc., New York.
•
Mallinckrodt
June
8
filed
Chemical
Works
(7/15)
v
$6,000,000 of convertible subordinated de¬
bentures due July" 1, 1974.
Price—To be supplied by
amendment. Proceeds.—To retire outstanding 6% cumula-
Price—$1
Proceeds — For additional working capital.
Office—Siloam Springs, Ark. Underwriter—None.
share.
per
M. & S. Oils Ltd.;
May 11 filed 390,000 shares of capital stock. Price—60
cents per share.
Proceeds — For exploration, develop¬
ment and acquisitions. Office—5 Cobbold Bloek, Saska¬
Saskatchewan,
toon,
land Securities Ltd.,
16
Canada. : Underwriter — Cumber¬
Regina, Saskatchewan, Canada.
.
Microwave
Narda
shares
balance
ceived
Inc.
filed $921,852. of Working Interests and Over4
Royalty interests in 26 oil and gas leases covering
The
funds
Proceeds—To purchase
and Taylor .Counties, Kentucky, some
being producing interests and some nonproducing. The offering is to be made initially to par¬
ticipants in the Mid-America Minerals, Inc., 1959 Fund.
Price—$2,221.83 per smallest unit. Proceeds—For invest¬
ment in oil arid gas lands.
Office—Mid-America Bank
Bldg., Oklahoma City, Okla. Underwriter-r-None.
lands
construction
in
unit!
June 22;
June
building
per
machinery, equipment and other fixed assets/for operat¬
ing expenses,;:*.and the remainder for working capital.
Office—4061 Transport St., Palo Alto,. Calif. Underwriter
—None,
•
* '
■
V:Y '■
of the company's proposed office
Miami (the balance estimated at $150,000
will be secured by a mortgage on the building), and
$93,200 to close certain options and purchase contracts
covering lands in the Melbourne-Cape Canaveral area.
of the first four stories
>yith the company's restricted stock option
Price~$i0?500
plan.
riding
;
LuHoc
Price—To
Oil &
Exploration, Ltd.
April 24 filed 225,000 shares of common stock. Price—90
cents per share. Proceeds—To defray the costs of explo¬
ration and development of properties and for the ac¬
quisition of other properties; also for other corporate
purposes.^
promotion
Co.
Medearis Industries, Inc.
.
31, 1964, to be offered in units of $1,000. Prio«
of principal amount. Proceeds—For invest¬
—At 100%
I ran do
Publishing
Office
Underwriter—-
N. Y.
St.,
of class A, voting, and three shares of class B,
non-voting stock at $40 per unit. Proceeds—To purchase
machinery and equipment and for working capital. Ad-dress—P.
O. Box
755, Norman, Okla.
Underwriter—
None.
;
vV/Yk
v;: "- ^
(letter of notification)
stock.
holders
June 12
Main
share
2,000 shares of class A
Proceeds—For expenses
publication of the newspaper "La
Voz." Office—1831 Vallace St., Philadelphia, Pa. Under¬
16
share.
per
(letter'of notification) $250,000 of 6% convertible
subordinated debentures due July 1, 1964, and converti¬
ble into units of common stock.which consist of one
Underwriter—None.
Recreation
Corp. (7/14)
May 14 filed 2,750,000 shares of common stock (par 50
cents). The issue was later reduced by amendment to^
980,000 shares. Price—$17.50 per share. Proceeds—For
construction and acquisition. Office—60 State St., Boston,
Mass. Underwriter—Bear, Stearns & Co., New York.
filed. 200,000 shares
29
June 1
(by amendment) 2,000,000 shares of com¬
mon stock
(par $1). Price—$2 per share. Proceeds—For
machinery and equipment and exploration purposes.
June
r
of capital stock (par 10£).
Proceeds—For sales promotion,
production test equipment, research and development,
demonstrators :for special systems, receivables,
inven¬
April 30 filed
Lee
Corp.
effective June 5.
Inc., Arnett, Okla.
Exploration. Co.,
(7/29)
Inc.
Matronics,
Maturizer
for
Co., Inc., all of New York; Bruno-Lenchner Inc., Pitts¬
burgh, Pa.; Netherlands Securities Co., Inc., New York;
and Plymouth Bond & Share Corp., Miami, Fla.
(par $1).
for
used
Westhury, L. I.,
Vermilye Brothers, New. York.
(W. S.) 1960 Co.
June 8 filed $3,500,000 of Participating Interests under
Participant Agreements in the company's 1960 Oil and
Gas Exploration Program, to" be offered in amounts of
$25,000 or.more. Proceeds—Acquisition of undeveloped
oil and gas properties. Office—2306 Bank of the South¬
west Bldg., Houston Texas.
Underwriter—None.
Laure
(7/15)
share? of common
Price*—$2p0 per share. Proceeds—To be
company's expansion program. Underwriter—
D. A. Lomasney & Co., New York.
stock
—558
Kilroy
Securities
«3t
Statement
Underwriter—None.
holders.
(letter of notification) 100,000
tories, prepayment of Jiotes and other purposes.
outstanding-stock of»Mexico Refrac¬
through merger. Proceeds—To selling stock¬
Co.
Marino, Calif.
Marshall Industries, San
June 23
Price—$3.75
exchange for'the
common
capital. Underwriter—Johnston, Lemon & Co.,
ington, D. C. Offering—Indefinitely postponed.
Corp.
May 11 filed 64,028 shares of 4%% cumulative convert¬
ible (1959 series) preference stock (par $100) and 128,shares of common stock (par 33Vs cents.) issued in
bank
Corp*, Irving Weis & Co., arid J. A. Winston
stock, series B, and for general corporate
Office—3600 North Second St.. St. Louis, Mo.
Underwriter—Newhard, Cook & Co., St. Louis, Mo.
.,
^
June
tories
Thursday, July 9, 1959
purposes.
Weld
Kaiser Aluminum & Chemical
...
tive preferred
ding.
loans; to liquidate long-term debt; and the balance for
additional working capital.
Underwriters — Standard
International
.
051
(7/13-17)
$200,000 subordinated
convertible 6% debentures (§1,009 denomination)
and
$50,000 subordinated convertible 6% debentures, ($500
denomination). Price—100% of principal amount Pro¬
ceeds—For working capital. Office—522 S. W. 5th Ave.,
Portland 4, Ore. Underwriter—May & Co., Portland, Ore.
Industrial
June
Commercial and Financial Chronicle
filed
Corp.
(7/27-31)
50,060 shares of
common
stock
(par
10
and 5CKQ00 warrants to be offered in units, consisting of one share of common stock with attached
warrant entitling the holder to purchase one additional
share.
The statement also includes an additional 10,000
cents)
.
of' cbrnmon' stock"
reserved
for
issuance
to
key
pursuant to options. Price—To be supplied
by amendment; Proceeds — To be used to retire bank
loans. Underwriter—Milton D. Blauner & Co., Inc., New
York.
' "
- /
:,
employees
-
(7/29)
April 20 (letter of notification) 150,000 shares of com¬
mon stock.
Price—At par ($2 per share).
Proceeds—1
•
National
Citrus
Corp.
equipment, inventory and working capital. Ad¬
O. Box 1658, Lakeland, Fla.
Underwriter-—
R. F. Campeau Co., Inc., Detroit, Mich.
For
new
dress—P.
Volume
190
Number 5802
.
.
The Commercial and Financial Chronicle
.
(143)
National Lead Co.
]
Northrop Corp. (7/21)
$10,000,000 of convertible subordinated de¬
due July 1, 1979.
Price — To be supplied by
June 29 filed 28,863 shares of common stock. On June 23,1959 National Lead entered into an exchange agreement
June 15 filed
providing for the acquisition of the assets of Goldsmith
Bros. Smelting & Refining Co., of Chicago, subject to the
requisite approval of the stockholders of Goldsmith, and
amendment.
bentures
corporate
National
of
Lead
stock
common
The
lists
prospectus
number
a
who
persons
will
receive and may sell the National Lead
ceived by them under the agreement. //./•,
stock
S.
;
re¬
★ National Sports Centers, Inc.
.
'
<
h ^
July 2 filed $1,000,000 of 6% convertible income deben¬
amount. Proceeds—To
be
C, and 100,000
100%
—
of
principal
offered
shareu
Broadway, New York. Underwriter"
"//•'. /////v:///
Business
June
/// Vri.
Corp.
April 24 filed
.
Investing
Capital
v*
500,000 shares of capital stock (par 50
cents). Price — $1 per share. Proceeds — For working
capital and investments.
Office—Hartsdale, N. Y.
Un- .
derwriter—None.
/'•/
•; >
•-/'''■
.
.
($1
penses
and first three months' operational
per
ex¬
OfJ
expenses.
fice—1250 Wilshire
Blvd., Los Angeles 17, Calif Und*r
Co., San Francisco 4, Calif., has
proposed underwriter.
/'V-1//; ;
writer—Waldron
withdrawn
as
Nedow Oil Tool
Co.
O. Box
Neiman-Marcus
June
29 filed
31,200 shares
Co.
(7/20-24)
133,800 shares of
are
to
be
common
offered
stock, of which
the
for
account
the
of
102,600 shares lor the accoqpt of certain
selling stockholders. Price—To be supplied by amend¬
ment. Proceeds—For working
capital. Office—Main and
Ervay Sts., Dallas, Tex. Underwriter—Lehman Brothers^
company
New
and
York.
New
'
Pacific Coal
syndicates and other real
filed
Ohio
Oil
common
for
each
share
of
common
Aurora; and 5.78438 shares of Ohio Oil
share
of class A
April
2
common
common
stock
of
for each
&
Oils
t
Ltd/
*
Gas & Minerals, Inc.
filed 260,000 shares of
common
stock (par 35
Price—$2 per share*. Proceeds—To retire bank
loans and for investment purposes. Office—513 Interna¬
tional Trade Mart, New
Orleans, La. Underwriter
Orleans, La.
—
Assets Investment Co., Inc., New
Concentrating Corp., New York, N. Y.
May 20 filed 200,000 shares of common stock (par 10
cents). Price—$3 per. share. Proceeds
For repayment
of
outstanding obligations and for working capital. Un¬
derwriter—Investment Bankers of America,
Inc., Wash¬
ington, D. C. Offering—Expected in July.
★ Owens Yacht Co., Inc. (7/27-31)
filed 300,000 shares of common stock (par $1).
To be supplied by amendment.
Proceeds — To
selling stockholders. Office-—StansbUry Road, Dundalk,
Baltimore, Md. Underwriter—Shields & Co., New York.
July 2
—-
Ozark Air Lines, Inc.
May 20 filed 132,944 shares of general common stock
(par $1) to be offered to holders of .class A and class B
common stock
(not including class B common held by
voting trustees) and holders of voting trust certificates
for class B common stock, on the basis of one new. share
of general common stock for each nine shares of class A
company; 100,000 shares will- be offered for the account
of a selling stockholder. .(Albert*
common, class B commoi^(not including class B shares
held by voting trustees), or* voting trust certificates for
class B common. Record date on or about
July 6; rights
.Mining-Corp. Ltd.);
the remaining 165,000 will be1 paid, as -additional
compensation to brokers and dealer^. Price—Related to
and
the
then
current
market
price oil the American
Stock
Exchange.
ment
of
Proceeds—To repay bank loans, for develop¬
nronerties, and for general corporate purposes.
Yonge Street "Toronto, Canada. Underwriter
Office—145
—None.
•
Toronto,
30 filed
be
(7/27-31)
1,000.,000 shares of
At net asset value.
common
stock.
Price---
Proceeds
For investment
Under¬
writer—Carl M. Loeb, Rhoades & Co., New York.
—-
Newport Electric Co.
,
June 22 (letter of notification)
stock (par $10) to be offered
the basis of
or
one
about July
7;
new
first'
to
common
stockholders
on
share for each ten shares held
on
rights to expire
filed
offered
the
on
basis
(8/5)
covcrtible
of
of
$100
principal
Aug. 5, 1959; rights to expire
25, 1959.
Proceeds—For construction
writer
To
—
be
determined
debentures,
common
record
by
on
amount
stock held
or
to
of
of
about Aug.
Under¬
program.
competitive
bidding.
on
abpu't July 23.
or
bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc., White, Weld & Co. and Smith, Barney & Co.
(jointly); Ladenburg, Thalmann & Co.; Lehman Brothers,
Bear Stearns & Co., Eastman Dillon, Union Securities
& Co., Kidder, Peabody & Co. and Salomon Bros. &
Hutzler
(jointly).
Bids—Bxpected to be received on
Aug. 5.
/
.
Corp.,
Paco Products, Inc., Pacolet, A. C.
May 11
North American Acceptance Corp.
(letter of notification) $300,000 of
subordinated debentures to be offered for;
April 29
$10,996,000
debentures for each 40 shares of
'
York.
July 21.
7
14
(7/29)
convertible
on
a
subordinated
basis of $100 of
share§ of capital stock held
on
July 29, 1959; rights to expire on-Aug. 12. Price—To be
supplied by amendment. Proceeds
To be used as an
—
addition to working
in
capital,
connection
or as a
with
the
portion of the funds
acquisition
of
jet-
powered aircraft, including all cargo aircraft and related
flight and ground equipment, or both. Underwriters—
Lehman Brothers and Hornfcdmver &
Weeks,
New York.
Park
both
of
>
Drop
Forge
Co. (7/20-24)
outstanding shares of common stock
(no par). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office
777 East 79th St.,
June 25 filed 43,500
Cleveland, Ohio. Underwriter—Fulton, Reid & Co., Inc.,
Cleveland, Ohio.'
Participating Annuity Life Insurance Co.
June 4 filed $2,000,000 of variable annuity
policies. Pro¬
ceeds — For investment.
Office -— Hathcock Building,
Fayetteville, Ark. Underwriter—None.
Peckman Plan Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1),
Price—At
market/ Proceeds—For investment.
Under¬
writer—Investors Investments Corp., Pasadena, Calif.
• Peerless
Commodity Trust Fund
Fund, originally named First Boston Commodity Fund,
filed June 2 (letter of notification)
an undetermined
number
of
shares
of
beneficial
investment
in
interest
commodity
(no
par). Pro¬
Manager
futures.
—Commodity Counselors of Boston. Address—P. O. Box
67, Boston 1, Mass. Offering Circular dated June 26, 1959.
Pennsylvania Electric Co. (8/4)
15 filed $15,000,000 of first mortgage bonds due
Aug. 1, 1989. Proceeds — Will be applied to repayment
June
and
poses,
for
1959
construction
expenditures.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Equitable Secu¬
rities
Corp.;
Kidder, Peabody & Co.; Eastman Dillon,
Co., Merrill Lynch, Pierce, Fenner &
Smith, Inc. and White, Weld & Co. (jointly); The First
Boston Corp.; Harriman Ripley & Co. Inc. and Blyth &
Co., Incf (jointly). Bids—Expected to be received up to
11 a.m. (EDT) on Aug. 4 at the offices of General Public
Utilities Corp., 67 Broad St;, New York 4, N. Y.
Union Securities &
•
Philippine Oil Development Co., Inc.
April 10 filed 221,083,614 shares of capital stock, being
offered for subscription by holders of outstanding stock
the rate of
at
Record
date
one
June
new
share for
each two
shares held.
1959; right expire July 31, 1959.
Price—1% cents per share. Proceeds—For working cap¬
ital.
Office—Soriano Building/Plaza Cervantes, Manila
(P. I.). Underwriter—None.
2,
Phototronics
Corp., College Point, L. I., N. Y.
(letter of notification) 200,000 shares of common
(par 10 cents). Price—$1.50 per share. Proceeds—
Purchase and installation of machinery; electronic and
optical test equipment; purchase and installation of fix¬
tures and for working capital.
Office —.c/o McNabb,
Sommerfield & James, 40 Exchange Place, New York,
N. Y. Underwriter—M. H. Woodhill, Inc., New York,
June 9
stock
N.
Y.
Piedmont Aviation,
Inc.
May 6 (letter of notification) 81,714 shares of common
stock (par $1) being offered to stockholders at the rate
of 1/14 of
share for each share held
as of May 22,1959.
1959. Price — $3.50 per
share. Proceeds—For working capital. Address—Smith
Reynolds Airport), Winston-Salem, N. C. Undentfriter—
a
Rights to
expire
on
June 30,
None.
Probable
13,101 shares of
Price—To be supplied by amendment. ' Proceeds—l^or
construction program. Office—159 Thames
St., Newport,
R. I.
Underwriter—Stone & Webster Securities
New
on or
Pacific Power & Light Co.
July
Fund of Canada/ Ltd.,
about July 20.
Unsubscribed shares may be
Price—$4.75 per share. Proceeds—For
purchase of additional flight equipment.
Address—P. O.
Box 6007, Lambert
Field, St. Louis, Mo. Underwriters—■
Newhard, Cook & Co. and Yates, Heitner & Woods, both
of St. Louis, Mo.
•
New York Capital
June
expire
offered
of
of short-term bank loans incurred for construction pur¬
Oreclone
June 11 filed
1,265,000 shares ^f. common stock,- of which
1,000,000 shares will be offered for the account of the
Airways, Inc.
$46,962,100
debentures for each
ceeds—For
stock of Aurora.
cents.
Price
.
filed
debentures due 1979, to be offered
B
—
672, Odessa, Texas. Underwriters—
'
I'
To be designated.
class
one
Proceeds—'To be available
real estate
&
May 5 (letter of notification) 150,000 shares of commor
stock (par 50 cents). Price—$2 per share. Proceeds—To
acquire fishing tools for leasing; arid for wprking capital.
Address—P.
22
Oil,
share). Proceeds—For organizational
unit.
per
874,422 shares of common capital stock
(without par value). The company has agreed with the
holders of the outstanding shares of Aurora Gasoline Co.
to exchange 25 shares of Ohio* Oil common for
each
share of preferred stock of
Aurora; 5.78438 shares of
Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of Cumu¬
lative voting and non-assessable common stock. Price—
At par
in units of nine class A shares and
Price—$100
World
American
29
—
Ohio Oil Co.
General Investing Corp.,'New YOrk.
Small
Buildings of America, Inc.
estate. Office—9 Clinton St., Newark, N. J. Underwriter
—None.
*
available for development of properties and the
acquisition and development of additional bowling prop¬
Nationwide
;//v\/;;'vv'^v.;:'
■
for investment in
funds
Office—55
York, N. Y.
April 6 filed 91,809 shares of class A stock (par $1) and
10,201 shares of class B common stock (par $1) to be
common
payment of certain bowling alley and other, properties,
and the balance will be added to the company's general
erties.
Minerals, Inc., Keystone,
Dak.
Office
fori completion of and/or
used
Boulevard,
May 4 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For exploring and
recovering strategic metals and pro¬
ducing same. Underwriter—Caldwell Co., 26 Broadway,
New
.
tures cumulative due 1969, series
stock purchase warrants.
Price
Wilshire
and other
Pan
required'
Northwest Defense
(or such lesser
of
Office —9744
purposes.
capital
York.
number as provided for in the agreement) and the as¬
sumption by National Lead of certain liabilities of Gold¬
smith.
working
Beverly Hills, Calif. Underwriters—William R. Staats
& Co., Los
Angeles, Calif.; and Blyth & Co., Inc., New
the dissolution and liquidation of-Goldsmith.- Under the
agreement, National Lead will acquire the assets, prop¬
erty and business of Goldsmith in-exchange for 30,000
shares
Proceeds—For
•
June
43
ferred
6%
10-year
subscription
by stockholders in denominations of, $10Q, $500 and
$1,000 each. Rights will expire July 31, 1959. Price—At
par.
Proceeds—For working capital/ Office—Suite 487,
795 Peachtree Street, N.
E., Atlanta, Ga. Underwriter—
None.
,
it North Hills Electric Co., Inc. (7/27-31)
July 1 (letter of notification) 150,000 shards of common
stock (par one cent) to be offered on an all or
none basis..
Price—$2 per share. Proceeds—To pay bank loans, re¬
(letter of notification) 2,000 shares of 7%
stock
of five
to
be
offered
first
to
stockholders
at
pre¬
of-^amount
per
on notes and then to public. Price—At par
share).' Proceeds—To pay bank loans and for
corporate
&
Spartanburg,
Co,,
Kirkpatrick,
drawn.
See
purposes.
S.
ing
Underwriters—A. M.
C.; and
Inc., Nashville,
listing.
Clark,
Tcnn.
Statement
&
with¬
new
Paco
& Cable
stock at the rate of
Corp.
one
holders of
(par $5) be¬
outstanding
share for each five shares
new
July 7; rights to expire on or about July 27.
be
supplied by amendment.
Proceeds—To
repay outstanding bank loans, for construction expen¬
ditures and for other corporate purposes. Underwriteron
Price—To
Putnam
&
Co., Hartford, Conn.
Pressed Metals of America,
Inc.
April 17 filed 90,000 outstanding shares of common stock.
Proceeds—To selling stockholders. Office—Port Huron,
Mich.
Underwriter—None.
Producers
Law
Landstreet
Wire
offered for subscription by
held
,
1,000 shares held; unsubscribed
shares first to holders of 7% short-term notes in ratio
($50
Plastic
rate
shares for each
general
•
June 5 filed 40,000 shares of common stock
March
offered
31
Fire
Statement effective June 10,
& Casualty
Co., Mesa, Aria.
filed
400,000 _shares of common stock to be
for subscription by holders of stock purchase
rights acquired in connection with life insurance policies
issued by Dependable Life Insurance Co. and to certain
agents and brokers of Producers Fire & Casualty Co.
Price—$5 per share.
Proceeds—For working capital.
Products, Inc., Pacolet, /L C. (7/29)
200,000 shares of commoi\stock (par $1).
Price—To be supplied by amendment. -P^frceeds—To pay
-Underwriter—None.
deem outstanding
preferred stocky purchase additional"
bank loans and for general corporate purposes. UiulerPublic Service Co. of New Hampshire (7/22)
equipment, build inventories and add tq, working capital.
writers—A. M. Law & Co.,
Spartanburg, S. C., and Clark,
Underwriter—D. F. Bernheimer & Co/ Inc.- New York.
June 24 filed 396,000 shares of common stock (par $5).
,/Landstreet & Kirkpatrick, Inc., Nashville, Tenn.
^
Price—To be supplied by amendment.
Northern States Power Co. (7/22)
Proceeds—To be
Pall Corp. (7/22)
June 9 filed 952,033 shares of common stock
applied to reduction of short-term bank loans.
Under¬
to be of¬
June 25 filed $750,000 of .512% subordinated .convertible
fered for
writer—Kidder, Peabody & Co., and Blyth & Co., Inc.,
subscription by common stockholders of record
debentures, due July 1, 1974, and 40,000 outstanding
both
of
New York, N. Y.
about July 23 on the basis of one new share for
shares of class A stock. The 40,000 shares of class A stock
pgch,
15 shares held; rights to
Public Service Co. of New Hampshire (7/29)
expire on Aug. 11, 1959. Proceeds
will be sold for the account of certain selling stockhold¬
—For construction program
June 24 filed $8,000,000 of first mortgage bonds, series K,
ers.
Price—To be supplied by amendment.
expenditures, including the
Proceeds—
payment of any then existing bank loans' (estimated at
due 1989. Proceeds—To be applied to reduction of shortTo liquidate shprt-tenrf bank loans; to retire $115,000
term
bank loans. Underwriter
To be determined by
$14,000,000). Underwriter—To be determined by com¬
of 7 V> % debenture bonds and $15,000 of 8% debenture
petitive bidding. Probable bidders: Lehman Brothers and
competitive bidding. Probable bidders: Halsey, Stuart &
bonds; to be applied to repayment of loans owing to
June
30 filed
—
Riter
& Co.
(jointly); The First Boston Corpk, Blyth &
Co., Inc., and Kuhn, Loeb & Co. (jointly); White, Weld
& Co. and Glore,
Forgan & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Smith, Inc. Bids—Expected to be re¬
ceived up to 10
a.m.
(CDT)
on
St., Chicago 4, 111.
July 22 at 231 So. LaSalle
principal
stockholders
gages
machinery
on
open account; chattel mort¬
will be/ retired; and for working
capital. Office—30 Sea Cliff Ave., Glen Cove, L. I., N. Y.
on
Underwriters
—
L. F. Rothschild & Co., Paine, Webber,
Jackson & Curtis, and Hay3en, Stone & Co., all of New
York.
Co.
Inc.; Blyth & Co., Inc. and Kidder, Peabody & Co,
(jointly); The First Boston Corp. and White, Weld &
Co. (jointly); Glore, Forgan & Co.; Salomon Bros. &
Hutzler. Bids—To be received until 11 a.m. (EDT) on
Ju!y 29:
,
'
Continued
on
page
44
v
44
The Commercial and Financial Chronicle
(144)
Continued from page
accept
43
(Canada)
Quebec Hydro-Electric Cbmmission
(7/16)
;
-
9
June
25 filed $50,000,000
July
15,
X, due
by the Province of Quebec,
Price—To be supplied by amendment. Proceeds
Under¬
Co.,
Queenstown Gardens, Inc.
unit oonsisting'of 700 shares
non-voting common stock.
Price—$5,000 per
Proceeds—»-T6 acquire a 1061 apartment develop¬
known
as
Queenstown
Apartments in Prince
of class B
unit.
ment
Radar Design Corp., Syracuse, N. Y. (7/13-17)
May 26 filed 120,000 shares of common stock ($1 par).
Price—$3 per share. Proceeds — To liquidate notes and
mortgages, and for new equipment and-working capital.
Underwriter—Charles Plohn & Co., New York.
Investment
Radinsky
June
1
filed
100.000
Co.
shares of
common
stock
(par $1).
purchaser of stock is entitled to receive one stock
purchase warrant for each five shares cf stock acquired.
The warrants will entitle the holder to acquire one share
Each
of
for each five shares of stock acquired.
common
Price
Proceeds—For working capital. Office—
2000 W. Col lax Ave., Denver, Colo.
Underwriters —
Amos C. Sudler & Co., and Purvis & Co., both of Denver,
—.$2
per
Colo.
share.
Offering—Expected in August.
Financial
Rassco
basis.
(7/23)
shares of
stock, of which
ilC,000 shares are to be offered lor the company's ac¬
count and the remaining 32,000 shares are to be offered
for the account
be
common
of certain
selling stockholders. Price—
by amendment. Proceeds — -To retire
supplied
,
bank loans, to expand plant capacity and research facili¬
ties through purchase of machinery and equipment and
through leasehold improvements; and the balance for
working, capital, Office—Oakside at Nortnside, Redwood
City, Calif. Underwriters—Blyth & Co., Inc., San Fran¬
cisco and New
York; and Schwabacher & Co., San Fran-
Cisco, Calif.
"•
Reading Tube Corp. (7/14)
June
15 filed $5,000,000 of 15-year
sinking fund defoenturfcs, due July 15, 1974, with attached warrants to
purchase additional shares of common stock, to be of¬
fered in units
consisting of
a
$1,000 temporary debenture
with attached warrants in an amount to be determined
lit the time of offering. Price—To be supplied
by amend¬
•
St.
—
St.
& Co. ancl Bache &
Deetjen
Co., both of New York.
• Reheis
Co., Inc. (7/13-17)
June 5 filed 87,000 outstanding 'shares
(par $1). Price
stockholders.
—
$5
per
Business
chemicals in
of class A stock
share. Proceeds — To selling
Manufactures and sells fine
—
bulk
primarily to ethical pharmaceutical
manufacturers, and cosmetic manufacturers. Underwrit¬
er—Aetna Securities Corp., New York.
Under¬
30,000 shares of
common
stock.
The
com¬
proposes
for each share of Lone Star common. St.
common
will declare the
exchange offer effective if 95%
Regis
of the
outstanding shares of Lone Star common are deposited
fqr exchange, and may elect to do so if a lesser percent,
but not less than
80%, of all the Lone Star
enable it to control the
common
will
business operations and policies
of Lone Star.
St.
Regis Paper Co.
June 24 filed 20,000- shares of common
stock (par $5) to
be offered by the
company to the holders of the common
stock of Chemical
Packaging Corp. on the basis of one
share of
June
■
III.
to ofjqr this stoCk in exchange for out¬
standing shares of Common stock of Lone Star Bag and'
Bagging Co. on the basis of 0.6782 of a share of St. Regis
pany
St.
shares of
Regis
common
stock
common
St., New York.
for
each
of Chemical.
five
and
Office
—
one-half
150 East
Seeburg Corp.
19
filed
(7/15)
$5,135,000 of 20-year convertible subordi¬
debentures, due Aug. 1, 1979, to be offered for
subscription by common stockholders at the rate of
$100 principal amount of debentures for each 23 shares.
Record date July 15, 1.959;
29. Price—To be
supplied
rights expire on or about July
by amendment. Proceeds—To
retire
outstanding notes and for general corporate pur¬
including additional working capital. Underwriter
—White, Weld & Co., New York.
poses,
J-une 29 filed
tion
For general
corporate purposes
including additional
working capital and "further modernization" of plant
and equipment.
Underwriter—Eastman Dillon, Union Se¬
(8/19)
1,250,000 unit shares of capital stock. Price
•—-$2 per share. Proceeds—To be used in the company's
<)il exploration program for the
purchase of oil explora¬
and
drilling equipment, supplies and materials; to
contract" with U. S.
geophysical contractors for technical
services; and to pay< its pro rata shares of the dollar
■exploration expenses under its agreement with three
■other companies for joint
exploration of concessions held
3n the
Philippines. Office — 410 Rosario
Manila, Philippines. Underwriter—John
Jnc., New York.
'•••
St., Binondo,
Co.,
G. Cravin &
.
Richwell
Petroleum
Ltd., Alberta, Canada
1;998,716 shares of common stock
(par $1). Of this stock, 1,174,716 shares are to be sold
June
26,
1958
behalf
on
account
filed
the company and
824,000 shares for the
certain selling stockholders.
The company
to offer the 1,174,716 shares for
of
of
proposes
fcy its shareholders at
each three shares held
subscription
the
rate
of
one
new
share
lor
(with an oversubscription privi¬
lege). The subscription period will be for 30
days fol¬
lowing issuance of subscription fights. Price—To be
supplied by amendment. Proceeds—To pay off demand
note, to pay other indebtedness, and the balance if
any
will be added to
working capital.
Underwriter—Pacific
Securities Ltd,, Vancouver, Ganada.
5
Ritter
(P. J.)
■June 18 filed
Co., Bridgeton, N. J.
non-cumu¬
of
common
stock
(no par) to be offered to the holders of
preferred
stock of Brooks
Foods, Inc., at the rate
-of one share of Hitter
preferred stock for each share of
prefcri ed stock of Brooks and two shares of common
common
stock
of
Brooks.
Ritter
The
for
each
share
of
common
stock
of
exchange offer is being made by Ritter in
accordance with
of
its
shares
its agreement with Brooks
and certain
stockholders who own an
aggregate of 18,805
of its outstanding common
mately 62.5%
stock,
or
of such stock, and who have
curities & Co., New York.
•
Silver
approxi¬
agreed to
Creek
Inc.
10-year convertible
de-
(subordinated), due Jan. 1, 1969.
'
v..
Sports
■
Arenas
Inc.
(Delaware)
Nov. 18 filed 461,950 shares of common stock (par one
sent). Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office
—33
Great Neck Rd.,
Great Neck, Ni Y.
Underwriter—
None.
•
Standard Aircraft Equipment Co., Inc.
12 (letter of notification)
75,000 shares
(7/13-17)
of common
(par 50 cents). Price—$4 per share. Proceeds—For
general corporate purposes; working capital and for
specialized equipment. Office—108 Meadow St., Garden
City, Town of Hempstead, New York. Underwriter-VJune
stock
Adams &
Peck, New York, N. Y.
Stelling Development Corp.
June 8 (letter of notification) 800,000 shares of common
stock (par one cent). Price—$1
per sjhare. Proceeds—
For mortgages, land, paving
roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.
(7/20-24)
June 29 filed 368,571 shares of common stock, to be of¬
fered for subscription by common stockholders at the
rate of one new share for each five shares held on or
about July 20, 1959; rights to
expire on or about
Aug. 12,
by amendment. Proceeds—
bank loans; for payment of a note;t for
working capital; lor expenditures by Strategic-Udy
Metallurgical & Chemical Processes Ltd., which owns
and operates a pilot plant at Niagara
Falls, Ontario, and
is a subsidiary of Stratmat
Ltd., Strategic's principal
subsidiary, and by its other direct subsidiary, StrategicUdy Processes, Inc., which owns and operates a labora¬
tory at Niagara Falls, N. Y.; as working capital for a
mining subsidiary; for payment of a mortgage; and as
'working capital for another subsidiary. Underwriters—
1959.
Price—To be supplied
For payment of
vS.
D.
Lunt
&
Co.,
Buffalo,
N.
Y.;
and
Alien
&
Co.,
New York.
«
Stuart Hall
Co., Kansas City, Mo.
June 8 (letter of
notification) 23,169 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—For general corporate purposes. Underwriter
—White & Co., St.
"Louis, Mo/
A Studebaker-Packard Corp.
July 1 filed 165,000 shares of $5 convertible preferred
stock (par $100) and
5,500,000 shares of common stock
(par $1). The 5,500,000 shares are reserved for issuance
conversion
of
the
preferred
stock
on
and
after
1, 1961, at the conversion price of $3 per share,
(taking the preferred at $100 per .share). The preferred
stock
was
1958,
to 20
June 4
30
filed
(letter of notification) 240,000 shares of
common
stock (par, $1).
Price—$1.25 per share. Proceeds—For
general corporate purposes. Office—307te W. 19th
Street,
Cheyenne, Wyo. Underwriter—Harrison S. Brothers &
Co., Salt Lake City, Utah.
Soundscriber Corp.
May 13 filed 126,25.4 shares of
common
being offered for subscription by
at the rate of one
new
stock
common
(par $4)
stockholders
share for each three shares held.
Record date July
2,1959; Rights expire July 29,1959. Price
Proceeds—To be applied for costs in¬
and tb be incurred in connection with the in¬
—$14 per share.
troduction of a new line of office
dictating equipment;
payment of installment notes with
interest; payment of a
bank indebtedness; payment and interest on
notes pay¬
able; and for general corporate purposes. Office—8 Middletown Avenue, North
Haven,
None.
Conn.
Underwriter—
ir Southern Nitrogen Co., Inc.
July 8 filed 136,400 shares of outstanding common stock.
Price—To be supplied by amendment. Proceeds
To
selling stockholders. Business—The company owns and
—
operates
nitrogen plant at Savannah, Ga. Underwriter—
Harriman Ripley & Co:
Inc., New York.
a
originally issued by the
company
in October
banks and
three insurance companies pur¬
reorganization. The largest blocks
of preferred stock are now held
by two insurance com¬
panies—the Metropolitan Life Insurance Co. and the
suant
to
a
Prudential
in
made
corporate
Insurance Co. of America.
order
to
provide
shareholders who
shares
the
of
preferred
The
prospectus for
a
preferred
wish
may
and/or
to
filing
use
offer
by
or
was
the
sell
stock.
Bear,
of the preferred stockholders, will
public sale 550 shares of preferred
stock owned by it, at a
price to be supplied by amend¬
Stearns
initially
&
Co.,
offer
common
one
for
ment.
•
Sunray Mid-Continent Oil Co.
May 19 filed 525,000 shares of common stock to be of¬
fered in exchange for common stock of Suntide Refining
,
Co. in the ratio of
Precision
Corp. (7/20-24)
1,550,000 shares of common stock (par
10 cents), of which
200,000 shares are to be offered for
the account of the
company, and 1,350,000 shares for
account of selling stockholders.
Price—To be supplied
by amendment. Proceeds—For working capital. OfficeCentral Ave. and Mechanic
St., Silver Creek, N. Y. Un¬
derwriter—Maltz, Greenwald & Co., New York.
Skaggs Leasing Corp.
^
March
curred
4,827 shares of preferred stock,
lative, voting, (par $100) and 60,018 shares
and
None.
nated
Seiberling Rubber Co. (7/28)
June1 29 filed $8,000,000 of 20-year subordinated deben¬
tures, convertible into common stock during the first 10
years. Price—To be supplied by amendment.
Proceeds—
Republic Resources & Development Corp.
(Delaware)
Price—To be
mpplied by amendment. Proceeds—$750,000 to pay AMF
Pinspptters, Inc. for bowling alley beds; $350,000 to pay
(or other installations, fixtures and equipment; $85,000
:o
expand two present establishments by increasing
che number of alley beds by eight at Yorktown Heights
ind by six at Wilton Manor Lanes, Fort Lauderdale;
$300,000 for deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. Underwriter—
upon
Underwriter—None.
Thursday, July 9, 1959
.
Jan.
wit)
Underwriters—Emanuel,
Bell wood,
Regis Paper Co.
June 26 filed
requirements resulting from increased investment in in¬
ventories and for additions and improvements to
prop¬
facilities.
Twenty-fifth A.ve.,
writers—Stifel, Nicolaus & CO. Inc., St. Lbuis, Mo.; and
Walston & Co., Inc., New York.
'
r
.
$2,000,000 of 6%
Strategic Materials Coyp.
Clair
Specialty Manufacturing Co., Inc.
(7/27-31)
June 29 filed 30,000 shares of common stock.
Price—
To be supplied by amendment.
Proceeds
To be ap¬
plied in partial payment of 5% note" due April 1, 1961.
42nd
and
assets and
there would be allotted
in kind to its share¬
holders, 3,971,012 fully paid shares of Royal Dutch ami
5,956,518 fully paid ordinary shares of Shell Transport.
Bataafse Petroleum Maatschappij, N.V., a company of
the Royal Dutch/Shell group of companies, which owns
about 21% of the issued share capital of Canadian Eagle,
will waive its right to participate in such distribution.
Canadian Eagle shareholders owning the remaining 23,826,072 ordinary shares of Canadian Eagle will there¬
fore receive two Royal Dutch shares and three Shell
Transport ordinary shares in respect of every 12 shares
of Canadian Eagle held. The offer, is to be voted upon
by Canadian Eagle shareholders at a meeting to be held
July 2f, 1959. After the shares of Royal Dutch and Shell
Transport have been distributed to Canadian Eagle
ment. Proceeds—To repay in full long-term bank
loans,
end the balance will be added to the
general funds of the
company and
be available to meet increased cash
erties
for the whole of its
Pursuant to the offer,
Office —120
Raytherni Corp.
,
Company Limited,
to Canadian Eagle, for distribution
18 filed
centurcs
ment effective June 17.
15-year 6% series A sinking
fund debentures due 1973, to be offered in denomination*
of $500 and $i,000l Price—At par. Proceeds—For work
irig capital and general corporate purposes. Underwrite)
—Rassco Israel
Corp.,'New. York, on a "best effort*'
To
Oil
shareholders,^Canadian Eagle is to be dissolved. State¬
Corp.
June 26 filed $1,000,000 of
June 29 filed 150,000
Corp., Salem,
port filed 1,191,304 ordinary shares (£ nominal value),
According to the prospectus, an offer has been made
by Royal Dutch and Shell Transport to Canadian Eagle
business.
Underwriter—None.
Georges 'County, Md.
Nov.
•
Trading Co.
>
May 27 Royal Dutch filed 794,203 shares (nominal par
value of 20 Netherlands Guilders each), and Shell Trans¬
Inc., both of New York.
June 5 filed 140 units, each
Furniture
,
Arenas
Sports
reg¬
Royal Dutch Petroleum Co./Shell Transport &
writers—The First Boston Corp., and A. E. Ames &
\
Rowe
effectiveness of the
/*""'•/
upon
,
Va. (7 20-24)
June 9 filed 165,000 outstanding shares of common stock.
Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Underwriter—Francis I. duPont & Co.,
Lynchburg, Va., and New York.
■
.
capital expenditures and lor refunding.
—For
•
of debentures, series
1934 guaranteed
Canada.'
the exchange offer
istration statement.
.
shares of Suntide.
one
share
of Sunray for each three
The offer is conditional upon the de¬
posit by Aug. 7,
that
1959 of sufficient shares of Suntide so
Sunray will own at least 90% of the outstanding
Offering may be extended for additional
Suntide shares.
30 days.
Underwriter—None.
ic Supercrete Ltd. (7/29)
July 2 filed 300,000 shares of
common stock, of which
100,000 shares will be offered for the account of certain
selling stockholders, and the remaining 200,000 shares
will be sold for the company's account. Price—To be sup¬
plied by amendment. Proceeds—For reduction of bank
loans
and lor1 working capital. Office — St.
Boniface,
Manitoba, Canada. Underwriter—Straus, Blosser & Mc¬
Dowell,, Chicago and New York.
Super-Sol Ltd.
March 25 filed 250,000 shares of common stock. Price—
At par (19,800 Israeli pounds—equivalent to $11 per
share in U; S. funds), payable up to 90% in State of
Israel Independence Issue and Development Issue Bonds;
the balance in cash. Proceeds—For expansion pro¬
and
gram.
Office — 79 Ben Yehuda St., Tel Aviv, Israel.
Underwriter—American Israel Basic Economy Co., New
York, N. Y. Statement effective June 24. >
•
Superior Window Co.
(7/15)
May 15 filed 50,000 shares of 70-cent cumulative con¬
vertible preferred stock (par $8) and 125,000 shares of
class A common stock (par 10 cents). Price—For pre¬
ferred stock, $10 per share; and for common stock, $4
per share. Proceeds—To purchase the assets of Superior
Trucking Co.; for repayment of notes; and for general
corporate purposes. Office—625 E. 10th Ave., Hialeah,
Fla.
Underwriter—Cruttenden, Podesta & Co., Chicago
and New York.
r-
Volume
190
Number
5862'.
.
The Commercial and Financial Chronicle
.
(.145)
•
Tang
Industries,
Inc.
erations.
Office—1500
Massachusetts Avenue, N.
W.,
110,000 shares of common stock (par 10,. Washington, D. G. Underwriter—None.
;
r
v
cents. Price—$3 per share.
Proceeds—To purchase ma¬
Triboat Plastics, Inc.
chinery and equipment; for research and development;
June 18 (letter of notification) 20,000 shares of
for certain expenses and for working capital.
Office—
capital
stock. Price—At par ($10 per share).
49 Jones Road, Waltham, Mass.
Underwriter — David
Proceeds—For the
Barnes & Co., Inc., New York.
manufacture and sale of the company's products. Office
—Juan Rosado
St., Arecibo, Puerto Rico. Underwriter—
•
Tape Cable Electronics Co., Inc.
(7/13-17)
None.
June 8 filed 110,000 shares of common stock (par one
cent). Price—$3.75 per share. Proceeds—For the purTrinity Small business Investment Co.
chase and
construction
of
April 17 filed 235,000 shares of capital stock (par
necessary
machinery and
$1).
Price
—$10.75 per share.
Proceeds — For investment.
equipment, the promotion and sale of Tape Cable, and
Office—South
Main
for working capital. Office—790 Linden Ave., Rochester,
Street, Greenville, S. C. Under¬
N. Y. Underwriters—Charles Plohn & Co. and Nether¬
writer—To be supplied by amendment.
Mav
25
filed
_
.
lands Securities
Wolf
Tuboscope Co. (7/15)
June 26 filed 200,000 outstanding shares of common
slock
(par $2). Price—To be supplied by amendment. Proceeds
—To
selling stockholder. Office
2919 Holmes
Road,
Houston, Tex. Business—The non-destructive testing and
LaSalle St., Chicago? 111. Underwriter
Co., Chicago and New York.
—
—
inspection of drill pipe and other oil field tubular prod¬
ucts. Underwriters
Glore, Forgan & Co., New York;
—
and Rowles
Winston
&
Tungsten Mountain fining Co.
May 21 (letter of notification) $100,000 principal amount
of 7% first mortgage convertible
bonds, to be offered
in denominations of $500 and
$1,000 each. Price—100%
of principal amount. Proceeds—For
construction, instal¬
lation of machinery and
equipment and working capital.
White. Weld &
Office—511 Securities
'
Building, Seattle 1, Wash. Under¬
writer—H. P. Pratt & Co., Seattle
4, Wash.
Keys, Inc., Providence, R. I.
April 28 filed 973,000 shares of capital stock
Union
Light, Heat & Power Co. (7/9)
June 12 filed $6,100,000 of 30-year first
mortgage bonds
due July 1, 1989. Proceeds—To
repay advances from its
parent, the Cincinnati Gas & Electric Co., and to finance
a'ftort'ioft of the company's construction program. Under¬
(par $1).
Price—$5.40 per share. Proceeds—For investment. Office
Hospital' Trust Bldg., Providence, R. I. Distributor
Co., Providence, R. I.
'
—E. R. Davenport &
writer—
ic Tennessee Gas Transmission Co. (7/21>
July 2 filed $50,000,000 of first mortgage pipe line bonds,
Nov.
1,
repay
be supplied by amendment.
short-term notes issued in connec¬
&
Co.
(jointly); Blyth & Co., Inc. and First
Boston Corp.
Bids—Expected to be received up to 11 a.m.
owSTuly 9 at the office of the Irving Trust Co.,
(jointly).
Underwriters—Stone & Webster Securities Corp.,
White, Weld & Co. and Halsev. Stuart & Co. Inc., all of
One Wall
(EDT)
New York.
Proceeds
or purchase.
Office — Wilmington. Del.
writer—None.
Myrl L. McKee of Portland,
Building, Cleveland, Ohio. Underwriter—Fulton
Co., Cleveland, Ohio. The offering has been
postponed indefinitely.
United
v
Chemical
Transcontinental
June
Development Corp.,
Underwriter—First
United
Gas
Pipe Line Corp.
U.
S.
Polymeric
June
11
filed
Chemicals,
75,930
shares
of
Inc.
<7/22)
maining 20,000 shares
filed
150,000 shares of cumulative preferred
(without par value—stated value $100 per share).
under the
company's mortgage
as
«,
the basis for issuance
stockholders.
are
Price —To
Proceeds—To
be
added
are
derwriter—Domfruck &
•
June
25
filed
ment. Proceeds
..
,
Gas
Pipe Line Corp (7/22)
$20,000,000 of first mortgage pipe line
Graham
—
re¬
to be sold by certain selling
be supplied by amendment.
the
general funds of the
(Calif.) plant.
Un¬
Dominick, New York.
Albert
Griswold
be
of
named
by
Portland,
amendment.
Ore.,
is
Pres¬
Francisco
Inc.,
Lexington,
Mass.
(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
stock.
Utah.
Underwriter—Walter
Sondrup &
Co., Salt Lak#
City, Utah.
Val
(7/15)
Vista
29
Investment
filed
80
Co., Phoenix, Ariz.
investment
contracts
(partnership in¬
terests) to be offered in units. Price—$5,378.39
12
filed 90,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds — To
selling stockholders.
Proceeds—For
curities Co.
.
investment.
per
Underwriter—O'Malley
unit.
Se¬
Hunters,
s
Inc.
900,000 shares of common stock (par one
Price—$1 per share. Proceeds—For salvage op¬
1
and
New York.
1,000,000 shares of
common stock (par
$S
Price—$4.50 per share. Proceeds—
a racing plant; and for work¬
ing capital and other corporate purposes. Office—Notre
Dame Avenue at King Street,
Winnipeg, Canada. Under¬
in Canadian
funds).
construct and operate
writer—G.
Everett
withdrawn
as
Parks
&
Co., Inc., New
underwriter.
York
-
haa
'
;
Voss Oil Co.
(7 20-24)
May 27 filed 1,231,779 shares of class A common
stock,
of which 231,779 shares will be issued to
creditors. Price
—$1 per share. Proceeds—To be used for a waterflood
program, and for working capital and other corporate
purposes. Office—211 South Seneca St.,
Newcastle, Wyo,
Underwriter—Hill, Darlington & Co., New York.
Vulcan Materials Co., Mountain
Brook, Ala.
May 7 filed 252,526 shares of common stock, of which.
142,526 shares represent the balance of 250,000 shares
issuable upon the exercise of options
granted key
,ployees under the company's Employees
Stock Option
remaining 110,000 shares are to be issued to
stockholders of Grcystone Granite Quarries,
Inc., and
Pioneer Quarries Co., both North Carolina
corporations,
and to certain other parties in
exchange for all the out¬
standing capital stock of Grcystone and Pioneer and
certain real and personaFproperties
operated under lease
by Pioneer.
Plan.
The
Vulcan
Materials
Co.,
Inc.
June 29 filed 10,000 shares of 6/4% cumulative
preferred
stock and 560,000 shares of common
the
stock, to be,offered
stockholders of Ralph E. Mills Co., Talbott Con¬
struction Corp. and Talco
Constructors, Inc., in exchange
for all the outstanding
capital stock of these three cor¬
porations, and to the owner of Sherman Concrete Pipe
Co., Chattanooga, Tenn., for the business and assets o2
that company. Office—Mountain
Brook, Ala.
• Wade
Drug Corp., Shreveport, La.
April 28 filed 357,250 shares of class B
common
stock
priyately to retail druggists through James D.
Wade, Jr., company's principal officer
who will receive
a
and
stockholder,
commission of $1.50 per share. Price
—$10 per share. Proceeds—To purchase additional
chinery and equipment; research and
initial
ma¬
experimentation;
contracts; and
purchase
panies. Underwriter—None.
of
additional
com¬
+ Wall Street Planning Corp., Boston, Mass.
July 8 filed (by amendment) an additional $6,000,000 ojf
systematic investment programs with group creditor life
insurance protection.
Proceeds—For investment.
Warren
Dental Laboratories, Inc.
(letter of notification) 10,000 shares of common
(par $1). Price—$10 per share. Proceeds—For ex-,
penses for construction and operation of a dental labora¬
tory. Office—214 W. Monument St., Baltimore 1, MdL
June 4
stock
Washington Land
June
Price
3 Tiled
—
$5
per
Office—1507 M
writer—None.
Developers,
shares
100,000
share.
of
Proceeds
Inc.
class
—
A
For
common
stock.
working capital,
Street, N. W. Washington, D. C.
Under¬
•
Wellington Electronics, Inc. (7/13-17)
May 6 filed 240,000 shares of common stock (par 75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank note;.to complete the automation of the etched
foil production plant at Englewood, N. J.; for manu¬
facture of machines to be leased to capacitor manufac¬
turers; and for working capital. Office — Englewood,N. J. Underwriter—Charles"Plohn & Co., New York.
Wells Industries Corp.
May 14 (letter of notification)
66,600 shares of common
(par 50 cents) to be offered for subscription by
stockholders on the basis of one new share for each five
stock
held. Price—$3 per share. Proceeds—To develop
place lightweight gasoline driven golf carts and
working capital. Office — 6880 Troost Blvd., North
Hollywood, Calif. Underwriter—None.
for
West End
Bowl-A-Dronie, Inc.
(letter of notification) preferred stock. Price—
At par ($100 per share). Proceeds—For purchase of land;
payment on construction of building and payment oil
purchase of equipmeht. Office —'Oneida St., Oneonta,
May 26
N. Y. Underwriter—None.
West-Wood
Processing Corp.
June 22
Underwriter—Kidder, Peabody &
Co., Inc., New York.
purposes
—
Raceway
May 25 filed
To
<
Business—Manufacture and^sale of
precision transducers.
corporate
working capital. Office
611 Hansey
Way, Palo Alto, Calif. Underwriter—Dean Witter &
Co.,
two
April 11
mon
Underwriters—White, Weld & Co. and
Corp., both of New York.
Trans-Sonics,
cent).
The
Utah Minerals Co.
June
Treasure
San
general
increase
shares
For
Stone & Webster Securities
June 4 filed
30, 1959.
ident.
prepayment of notes outstanding
under revolving credit
agreement, balance to be de¬
posited with the trustee under the company's mortgage
as the basis far issuance of a
portion of the new bonds.
The amount so deposited is to be withdrawn by the
company against property additions and used to prepay
June
share
new
1, 1980. Price—To be supplied by amend¬
additional notes.
to
to
Underwriter—To
purposes.
Transcontinental
one
Corp. of America, Portland, Ore.
April 30,1957 filed 1,250,000 shares of common stock (pai
16 cents).
Price—To be suonlied by amendment (ex¬
pected to be $1 per share). Proceeds—For exploration
St., Houston, Tex. Underwriters—White, Weld &
Co., and Stone & Webster Securities Corp., both of New
'"
Proceeds—For
and
50
Uranium
Travis
York.
(par
to be offered for sub¬
additional treaters for its Santa Ana
portion of new bonds. The amount so deposited is to
withdrawn by the company against property addi¬
tions and used to prepay additional notes. Office—3100
a
stock
company and used f6V corporate purposes, including a
$250,000 expenditure for the purchase and installation of
new processing equipment, consisting
principally of two
be
bonds due Feb.
amendment.
Underwriter—None.
(7/15)
common
scription by stockholders at the rate of
Price-^To be supplied by amendment.
Proceeds—For
prepayment of notes outstanding under revolving credit
agreement, balance to be deposited with the trustee
of
Corp.
States
cents), of which 55,930 shares
Washington, D. C.
24
stock
(7/15)
$4,000,000 of convertible subordinated de¬
bentures, due July 15, 1974. Price — To be supplied by
for
for each six shares held of record June
.
Varian Associates
Juno 24 filed
to be sold
&
Plywood Corp. (7/28)
$15,000,000 of 20-year subordinated deben¬
July 1, 1979 (convertible into common to July
1, 1969.
Price—To be supplied by amendment.
Pro¬
ceeds—Together with other funds, for purchase of all of
the assets (subject to the liabilities) of the
Booth-Kelly
Lumber Co. and the redemption of 38,084 shares of the
company's series A 3 % % cumulative preferred stock
(par $100), and a maximum of 9,551 shores of its series
B, 3%% convertible cumulative preferred stock, $100
par.
Underwriter—Eastman Dillon, Union Securities &
Co., New York.
(letter of notification) 300,000 shares of comhnon stock. Price—At par ($1 per snare). Proceeds—
development of oil properties.
New York.
tures due
March 20
For
Glass
June 10 filed
Mangum, Okla.
Investment Planning Co.,
States
Nov. 26 filed 708,750 outstanding shares of common stock
Price—At .market. Proceeds — To selling stockholders
•
—
&
9
Office—Tiffin, Ohio. Underwriter—None.
•
Tip Top Products Co.
May 29 filed $850,000 of 6% first mortgage sinking fund
bonds, series A (with warrants for 47,000 shares of class
A common stock), and 100,000 shares of class A common
stock. Priee
For stock, $10 per share; for bonds, at
100% of principal amount. Proceeds—To retire the pres¬
ent mortgage debt of the company, to pay off shortterm bank borrowings, and for working capital. Office—
1515 Cuming St., Omaha, Neb. Underwriters — J. Cliff
Rahel & Co., Omaha. Neb.; and The First Trust Co. of
Lincoln, Neb.
Petroleum
Under¬
Ore.,
President.
&
Transcon
and
to
Co.
lease
—
Tower
Reid
Insurance
Price
100% of principal
acquisition of the Terminal
For
—
Employees
April 16 filed 2,000,000 shares of common stock (par $5,
—
$10 per share. Proceeds — For acquisition o'
operating properties, real and/or personal, includinj
office furniture, fixtures, equipment and office space, b*
Terminal Tower'Co., Cleveland, Ohio
May 29 filed $3,300,000 of 6% sinking fund debentures
due July 1, 1969, with common stock purchase warrants
for the purchase of the company's common stock at the
price of $30 per share and at the rate of 10 shares for
amount.
Street, New York 15, N. Y.
United
$1,000 of debentures. Price
determined
&
company's construction program; to finance
additional capital outlays, and for general corporate pur¬
poses.
be
by competitive bidding.
Halsey, Stuart & Co. Inc.; White,
Co.; Equitable Securities Corp.; Salomon Bros.
Iiutzler; Morgan Stanley & Co. and W. E. Hutton &
Weld
Price—To
1979.
To
bidders:'
Probable
tion with the
each
—
Co., Houston, Tex/
Ten
Proceeds—To
filed
—
•
^-Television Shares Management Corp. (7/27-31)
July 1 filed 206,500 outstanding shares of common stock
(par one cent). Price — To be supplied by amendment.
Proceeds—To
selling stockholders. Office—135 South
due
(7/15)
20,000 shares of capital stock (par $1).
Price
To be supplied by amendment. Proceeds
To
selling stockholders. Office—611 Hansen Way, Palo
Alto,
Calif. Underwriter—Dean Witter &
Co., San Francisco
24
Victoria
Associates, Inc., Washington, District of Columbia.
—512
Varian Associates
June
Co., Inc., both of New York.
Technology, Inc.
May 15 filed 325,000 shares of common stock (par 10
cents).
Price—$4 per share.
Proceeds—To pay off in
full
the
subscription of Microwave Electronic Tube
Co., Inc. stock, represented by notes, to pay for im¬
provements upon the plant leased to Microwave, and
for working capital.
Office—1500 Massachusetts Ave¬
nue, N. W„ Washington, D. C.
Underwriter — E. L.
43
*
Variable Annuity Life Insurance Co. of America
April 21 filed $4,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
conl
?ts.
Proceeds—For investment, etc. Office—1832
M Street, N. W.,
Washington, D. C. Underwriter—None.
(letter of notification) 56,000 shares of common
stock, to be offered only to USAF officers stationed at
Mountain Home AF Base.
Price—At par ($1 per share).
Proceeds—For working capital.
Office—555 S. Center
Street, Reno, Nev.
Underwriter—None.
-
Continued
on
page
46
The Commercial and Financial Chronicle .'.
46
•
Continued
Western
from page 45
'
,
—None.
reported that
was
•
Co., Chicago, 111.
ta &
Southwest Corp.
Central &
writers
be
To
—
•
Light Co.
&
reported that the company plans to issue
(jointly);
Inc.
Stearns & Co.
& Smith Inc. jointly.
Leeds
ditional
210,000 additional shares of com¬
stockholders of record June
(jointly).
Travelwear
May 19 it
was
Corp. '
announced that company plans some ad¬
common
stock' financing. Underwriter—Auchin^.
closs, Parker & Redpath, Washington, D. C. and New
■;
York.
Maritime
June 4. it
to raise
an
;
a
& Telephone Co.,
Telegraph
.was
issue
ferred
Public Service Co.
titive
(9/9)
Ltd.
that the company has
announced
decided
substantial portion of the capital required- by
common stock to be offered to both pre¬
of
and
common
.stockholders.
is
It
that
expected
Securities
^Merchants National Bank, Boston, Mass.
Underwriter—To be determined by compe¬
July 6 directors of the bank asked stockholders to ap¬
prove plans to offer an additional 72,500 shares of capital
Dillon,1 Union
& Co. Bids—Expected to be received on
August. Proceeds—For capital expendi¬
tures.
bidding. Probable bidders: Kidder, Peabody & Co.
White, Weld & Co. (jointly); Eastman
and
the latter part of
that the company contemplates
sale of 30,000 shares of preferred stock
it was reported
(par $100).
(pa'r $10)
to stockholders
stock
on
the basis of
one
new
fori
share
each v.)6% shares held on the July 15 record date.
ceeds:—To increase capital and surplus.
Sept. 9.
Pro-
Underwriter—|
Consolidated
(7/20-24)
None.
Natural Gas Co.
of Jay
stock (par $3),
account of the company. Price—To
supplied by amendment.
Proceeds—For
able bidders: Halsey,
Proceeds—To repay outstand¬
for working capital. Office
Kansas City, Mo. Underwriters
—1400 Chestnut Avenue,
Higginson Corp., New York, and
—Lee
&
Stern Bros. &
stock. Price—At
additional 400,000 shares
market. Proceeds—For in¬
was
reported
that this company
plans
f
'•
e.
•
capital. Underwriter — Clayton Securities Corp., Boston,
Offering—Expected in the middle part of Sept.
Of these
shares 1,199,307 are
subject to partially completed sub¬
the addi¬
to be offered initially to share¬
scriptions at $2, $3.33 and $4 per share; and
tional 250,000
shares are
holders of record Nov.
1, 1958, in the ratio of one new
share for each 2.33 shares
held on that date.
Price—$4
$325,000 for capitalization of a fire insur¬
ance
$500,000 for capitalization of a title insur¬
company;
$500,000 for additional capital
tion to Great Plains Development Co.;
additional capital
derwritcr—John M. Tait & Associates, Cincinnati, Ohio.
and $300,000 as
continuing
(jointly).
18.
Coral Ridge
Bids—Expected
The First Boston
to be received on or
Willistoh
was
Properties
(Florida)
Beane, New York.
&
contemplates
—J.
A.
voted
1,000,000 shares from 472,229 shares,
25,300,000 shares from 20,300,—
For major expansion program.'
Proceeds
June
15
it
was
few months
000,000
Offering—
.
•
4—
Corp.
*
....
Underwriter-^D. H. Blair & Co.,
announced Bank is offering to its stock¬
April 17, 1959 the right to subscribe
on or before July 10. 1959 for 675,000 additional shares
of capital stock on the basis of one new share for each
eight shares held. Price—$32 per share, payable in 10
monthly installments from July 10, 1959 to April 8,
1960.
Subscription Agent—Royal Trust Co., Montreal,
■
it
was
announced
that
Kansas City,
the
company
facture of aircraft and missile
Trust
Co.
Bids expected to be received
Co., Inc.
byl
on
Aug. 25.
■
(8 26)
was reported that the company plans to re¬
bids on Aug. 26 for the purchase from it of ap¬
proximately $3,200,000 of equipment trust certificates!
Probable bidders: Halsey, StiCart & Co. Inc.; Salomon!
ceive
&
Hutzler.
,
is engaged in the
Inc.
&
the
Light Co.
&
petitive bidding. Probable bidders: Halsey, Stuart &
Col
and
Lehman
Brothers
(jointly); Merrill Lynch]
Pierce, Fenner & Smith, Inc.; Stone & Webster Security
Corp.; The First Boston Corp. and Smith, Barney & Coj
(jointly).
Speedry Chemical Products Co. Inc.
May 15 it was announced that the company plans, arl
offering of 208,666 shares of common stock Underwrite^
—-S. D. Fuller & Co., New York.
Registration—SomeJ
time in August.
Union
Electric Co.
(Mo.)
Feb.
23, J. W.- McAfee, President, stated^that the com-|
pany plans to sell about $30,000,000 of additional com¬
stock
later
this
year
through
rights
to
commor|
competitive bidding|
Probable bidders: Lehman Brothers; White, Weld & Co.
and Shields & Co. (jointly); Merrill Lynch, Pierce,
Fen-|
ner
& Smith, Inc. Offering—Expected toward the %nc|
of the third quarter of 1959:
•
•
'
1
^
writer—May
be
determined
by
Georgia Power Co. (9/17)
Dec. 10 it was announced that the company
plans to issue
*
Wayne Manufacturing Co., Los Angeles, Calif.
May 26 it
30-year first mortgage bonds. Proceeds—For construction program.
Underwriter—To be
was reported that this company plans
ondary offering of about 90,000 shares of common
determined
Proceeds—To
and sell $18,000,000 of
manu¬
parts, aluminum containers
Power
May 15, Frank McLaughlin, President, announced com¬
pany plans to issue and sell first mortgage bonds latei
in the year. Underwriter—To be determined by com¬
mon
July 1 it was reported that the company is contemplating,
issuance of 65,000 shares of common stock. Under¬
writer—Hecker & Co., Philadelphia. Pa.
.
Mo.
other proprietary products. Un¬
derwriter—S. D. Fuller & Co., New York.
&
Directors
contem¬
and beer barrels, aluminum curtain wall sections for the
industry and
tem-|
com-|
re-|
the
stockholders. Proceeds-r—For expansion program. Under¬
offering of $4,500,000 of common stock.
Pro¬
For expansion program and additional working
company
the
Federated Investors,
an
capital. Business—The
30
—None.
Canada.
\
Bank
approved, subject to stockholder
approval on July 14, the offering of 108,904 shares of
new capital stock to stockholders of record Aug. 7, 1959;
rights to expire on Aug. 28, 1959. Price—$30 per share.
Proceeds—To increase capital and surplus. Underwriter
June
was
Manufacturing Co.,
for
expects the issuance and sale of about $2,-
New York.
of record
Benson
expansion
Inc.
reported that the company in the next
of debentures.
Federation
•
of
competitive bidding. Probable bidders: The First Boston!
Corp. and Halsey, Stuart & Co. Inc. (jointly); Blyth &|
Puget Sound
April 28 to increase the authorized
Expected sometime this fall.
—•
program
mainder of the year. Underwriter—To be determined
Bros.
Underwriter—White, Weld & Co., New York.
mon
Bank of Montreal/.
Proceeds—To
July 7 it
reported that the company plans an offer¬
Paso Natural Gas Co.
shares.
000
additional financing, probably in the form of com¬
stock. Business—Food stores concern. Underwriter
Hogle & Co., Salt Lake City, Utah.
company
of
///./j,.
Essex Universal
company
the
form
UnderEl
reported that the
opera¬
pany's
Underwriters
—Cruttenden, "Podesta & Co., Chicago, 111. and J. R.
contribution to Great Plains Mort¬
financing
will conduct this year will take thel
$65,000,000 of first and refunding mortgage!
be applied in part, to retire.
bank loans, and the balance to finance the
ing of $4,000,000 to $5,000,000 of debentures.
Albertson's Inc.
was
(8 25)
announced that the only
porary
June 15 it
Prospective Offerings
June 23 it
Gas & Electric Co.
was
★ Pittsburgh & Lake Erie RR.
contribu-'
Office—319 E. "A" St., Casper, Wyo.
it
bonds.
preferred stock to
building
announced that the company
of first mortgage bonds due Aug. 1, 1989.
expansion and improvement program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, weld
& Co. and Shields & Co. (jointly); Morgan Stanley &
and the common stock to
—
Equitable Life Assurance Co.
plans an of-|
fering of 950,000 shares of capital stock. Price — $10. perl
share.
Proceeds—To increase capital and surplus. Un-|
was
Proceeds—For
Stockholders
plates
North American
Dec. 1 it
$35,000,000
about Aug.
writer—None.
ceeds
financ-|
some
tion
.
company;
10
plans
July 7 the company has asked the Michigan Public
Service Commission for permission to sell approximately
Corp.
shares of International Fidelity
Insurance Co.;
June
Newark Electric Co. of Chicago
June 2 it was reported that company
July 1
Co.; Harriman Ripley & Co. Inc. and
share. Proceeds—$300,000 will be used for payments
contract to purchase
holders
received
Bros. & Hutzler.
it Pacific
(8/18)
it Consumers Power Co.
1,449,307 shares of common stock.
Nov. 17 filed
May 1, it
be
an
■'
Wyoming Corp.
some
(7/16)
by the company on July 16 fori
the purchase from it of $3,600,4)00 equipment trust cer¬
tificates maturing annually from Aug. 1, 1960 to 1974.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
will
Mass.
vestment.
gage Co.
it
26
Missouri Pacific Ry.
Bids
ing. Business—Distributor of electronic parts/OfferingExpected in August or September.
offering of about 250,000 shares of class A common stock,
of which 200,000 shares will be sold for the account of
certain selling stockholders, and 50,000 shares will be
sold for- the company's account.
Proceeds — Working
^ Wisconsin Fund, Inc.
common
(jointly); White, Weld
Construction Products Corp., Miami, Fla.
,
July 2 filed (by amendment) an
Stuart & Co. Inc.; Morgan Stanley
Paine, Webber, Jackson & Curtis (jointly).
Co. and
June
Co., Kansas City, Mo.
Under¬
competitive bidding. Prob¬
& Co. and The First Boston Corp.
ing short-term bank loans and
favorable.
investments, improvements, etc.
writer—To be determined by
be
that
later in year to issue and sell $20,000,000
bonds, if market conditions are
of debenture
the account
V. Wilcox, President, and 143,736 shares are to
be offered for the
James Comerford, President, announced
19,
company plans
which 175,000 shares are to be offered for
an
j
■
The First Boston Corp. and Blyth St
Equitable Securities Corp.; White,
Weld & Co. and Shields & Co: (jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman,, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear,
Co.,
Co., Inc. and Harriman Rip¬
i
the issuance and
Co.
318,736 shares of common
June 24 filed
ance
Power
I
'v,/ '
.
Stuart & Co.. Inc.;
bidding.
(after
it Community
May
on
City
was
:V'";\
,
Wilcox Electric Co.
per
Bids—Expected to
/;'/•;•'
■"
rights to purchase these share will be available during
Proceeds—For construction and
None.
of
competitive
(par $10) to its
Angeles, Calif.
stock (par $25). Price —
equipment of
company's plant and for working capital. Office—300
Montgomery St., San Francisco, Calif.
Underwriter—
of
by
basis of one new share for five shares
a,50% stock dividend); rights to expire
on Aug. 3. Price—$37.50 per share. Proceeds—To increase
capital and surplus. Underwriter—Blyth & Co., Inc., Los
than held
4Q,000 shares of preferred
par.
;i
30, 1959, on the
July 7
shares of common stock
Sept. 17.
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Bank, Los Angeles, Calif.
July 8 the bank offered
derwriter—None.
Western Wood Fiber
National
Citizens
mon; stock
underlying such
options} are to be offered by the present holders thereof.
The options permit purchase of the underlying shares
at $1 per share.
Proceeds—For general corporate pur¬
poses. Office—2801 East Colfax Ave., Denver, Colo. Un¬
March 5 filed 100,000
Co.
&
Frer.es
(together with shares
shares
on
,and sell $20,000,000 of., first mortgage bonds. Proceeds—
(jointly); Lehman Brothers and Lazard
(jointly); The First BostonCorp. and
Merrill Lynch, Pierce, Fenner
of common stock and op¬
shares
172,701
purchase
to
172,701
At
determined
Provable bidders: Blyth &
(plus the underlying
shares). The company proposes to make a public offer¬
ing of three blocks of stock in amounts of 40,4.10, 38,570
and 36,935 shares, at prices of $1, $2 and $3, respectively.
The remaining 96,065 common shares and options for the
and
Dec. 29 it
that the company, in view of
generaliy favorable market conditions, is now consider¬
ing the sale of 350,000 or 400,000 shares of common
stock.
Offering—Expected sometime this Fall. Under¬
May 19 it was announced
Life Insurance Co.
filed 212,000 shares
29
tions
Kansas
,
Western Empire
received
'
ley & Co., Inc.
June
Securities &'/Co.
be
Offering—Expected about July 29.
Co.;
and Eastman Dillon, Unioq
(jointly); Haraman Ripley & Co. Inc.
Equitable Securities Corp.
Registration—Plawled for Aug. 21.
stock. Underwriter—Cruttenden, Podes-
class A common
Stanley &
Morgan
Corp.;
First Boston
The
ers;
the company.'is seeking,
ICC approval for the issuance of 250,000 shares of
it
4
.early
being of¬
fered for subscription by stockholders of record June 17,
1959, at the rate of one new share for each three common,
and one new-share for each five shares of preferred stock'
held on that date. Rights expire on July 15. Price—$17.50
per share. Proceeds—Together with other funds, will be
applied to the repayment of borrowings for construction
and/or for additional construction in 1959. Office—15900
San Jose-Lbs Gatos Road, Los Gatos, Galif. Underwriter
of common stock,
(7/29)
Transportation, Inc.
Buckingham
May
California Telephone Co.
filed 44,729 shares
1
June
•
Thursday. July 9, 1959
.
(146)
by competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.. Kidder Peabody & Co. and Shields & Co. (jointly); Lehman Broth¬
chum,
Jones
a
sec-l
stock|
selling stockholders! Underwriters—Mit& Templeton, Los Angeles, Calif.; an(|
Schwabacher h Co., San Francisco,
Calif.
Volume
Number
190
5862
The Commercial and
Financial Chronicle
(147)
Hardly
a
year ago
the company
borrowed $20 million
rate
of
41/s%.
on
In
a
1956,
firmed, it put out
money
issue
similar
a
fnittee members mentioned them.
that mentioned previously
with'a 4%% rate priced at 102.75.
coupon
when
as
On
the up side
look survey
ket
the
in
is
inertia
mer
grip of usual
just
by uncertainty
sum¬
leveling;
and
next
gations still display a tendency to
respondents
further.
students
Close
-
of
of
it
market,
the
the
" '
is
"keystone"
generally,
which
disposed to
the
scope
They
know,
do
tions
to
lend
the
with
and
naturally
that
Governments
their
crease
in
rates,
ready
are
order
dealer^
who
specialize
«
hoin'flf
banks
profitable
pru.uaule
loans
1'°"'
men-.
ZZJ!*:
rush to
any
mitments
in
The only
moment
and
to
bearing
and
com¬
new
that
under¬
have
rem¬
offerings.
the
the
corporate
bond
,
concenWng the wisdom
ment from
while
markets
is
back,
they, like some
operating in the tax exempt field
the New York State Thru-
as
Authority,
way
balk
if
disposed
were
figured
they
rates
softened
Industry
needs
is
willing
to
change that has
of
cost
about in the'
come
funds
it
the
the going-
pay
needs.
So
the
tendency is to look for further
adjustment in the secondary" mar¬
as
issues offer, somewhat
new
'
better than
The
new
current
'yields.
the
near-term
buying
and
more
only 2%
"There
.
month.
than they did five
is
little
a
In addition
offerings to be topped
million
of
debentures
S50
slated
to
be
offered
for the
Que¬
bec Hydro Electric Commission on
Wednesday.
Monday has potential in
list
of
small
prospects
long
a
Tues¬
and
day will bring to market for bids
Jersey
Central
Power
Co.'s S8 million of
On
Wednesday,
&
bonds.
new
in
Light
addition
Quebec offering, there is the
prospect of $15 million of deben¬
tures for U. S. Plywood Co.
on
has
Thursday
tube
Reading
scheduled
$5
while
million
of
Co.
ment.
"June
of
activity in
show
drew
significant 45%.
domestic
our
29%
report
no
corpora¬
the
price
situation
(a number
up
slight increases
16%
say
they
say
no
5*4%
top
bid
coupon
of
102.291
for
a
yield
5.10%.
Co.,
The Board of Directors has de¬
of continued
employment for the next few months.
RALEIGH, N. C.
on
,
Robert J.
—
Bache &
joined
the
with
the
staff
of
Treasurer
Carew
is
York
New
with
Tower,
Hill
&
members
and
Co.,
of.
Cincinnati
Exchanges.
the
Stock
'
-
L. J. Lazarus
Louis
J.
securities
a
Opens
is conducting
Lazarus
business
from
offices
MRO
Supplies
__
_
_
Caoital Expenditures
20
13
(J Mos.
Days
(»0
!)0
Days
Days
to
1
Yr.
27
32
43
25
6
10
27
Leonard
92
Street, New York
.
MRO Supplies
Capital Expenditures
the
.
...
—
—*
-
ATCHISON,
New
FE
York.
' Board
TOPEKA
RAILWAY
N.
June
Y;,
The Gearfyear Tire I Rubber Ci
30,
10
.
21
•
of
M.
R.
up
in price that
are
quite
New
York
Treasurer
5.
N.
Y.
IBM
AMERICAN
CAN COMPANY
COMMON
On
June 30,
1959
178™
CONSECUTIVE
quarterly dividend
STOCK
quarterly dividend
a
of fifty cents per share was declared on the
Common Stock of this Company, payable
August 15, 1959 to Stockholders of record at
the close of business July 24, 1959. Trans¬
The Board of Directors
fer books will
International
remain open. Checks will be
Machines Corporation has
today declared a
share,
quarterly
$.50 per
payable Sept. 10,
of
1959, to stockholders
record at the close of
ness on
busi¬
August 11, 1959.
American
fAVISCOl
of
Business
cash dividend of
C. V.
Viscose
BOULTON,
Treasurer
590 Madison Avenue
New York
DIVIDKM) NOTICE
June 30,
Directors
of
the
26
35
25
49
19
5
2
11
7
10
23
49
25
11
oil
common
dividend of
a
per
holders of record
on
share
IBM
INTERNATIONAL BUSINESS MACHINES
CORP.
on
stock, payable
Vugiist 1, 1959,
of I >us in ess
22, N. Y.
1959
American
Corporation, at their
regular meeting on July 1,
the
3
a
July 6, 1959
THE GREATEST NAME IN RUBBER
SWEARINGEN,
Assistant
Broadway,
2
50
few miscellaneous items reported
not* shown here because only one or two comare
By Arden E. Firestone,
Secretary
1959.
Directors
of
dividend
a
to
AND
COMPANY
has
this day de¬
Thirty Cents
(30c) per
share, being Dividend No. 102, on the Common
Capital Stock of this Company, payable Sep¬
tember " 1.
1959,
to
holders of said
Common
Capital Stock registered on the books of the
Company at the close of, business July 31, 1959.
The
clared
1959
15,
L4, 1959.
ust
THE
at
to
share¬
the close
July 15, 1959.
SUPPORT THEv
U. S. SAVINGS BOND
WILLIAM
"This month there
September
stockholder^ of record at
the close of business Aug¬
DIVIDEND NOTICES
fifty rents (50e)
Specific Commodity Changes
of
dividend:
60 cents per share on the
Common Stock,
payable
City.
7
May
Production Materials.
The Board of Directors to¬
day declared the following
at
1959, declared
7
V
CINCINNATI, Ohio—Eugene R.
Henninger
Visdose
Reporting
June
Materials
:
24, 1959
With Hill & Co.
good
any
Production
i.nc
Corporation
Per (,'cnt
the
the close of business
VINCENT T. MILES
J
present
30
at
July 19, 1959.
Co., 130 South Salisbury
Street.
1
optimistic business outlook, few are
desire to make extended commitments. Some com¬
ments reflect that suppliers are
keeping spots in their production
schedules open for their good customers.
showing
per share payable on
the
Company
August 1,1959, to shareholders
of record
on
has
Buying Policy
Even
quarterly dividend of
a
Common Stock of the
"
Young
J
STOCK
Inc.,
JOITX R. HENRY, Secretary
one
QUARTERLY
purchased
; "Employment continues to hold at high levels.
Automobile
production, road construction, new housing starts and agricultural
demands have all added to the
bettering of the employment situa-1
tion. There is some hiring of Summer
help by industry: but, in
general, college students and high school graduates are finding it
hard to get Summer jobs.
"This month, 43% report (heir employment
up, 50%/ indicate
no change, and 7%
say their rolls are down for various reasons.
101.489
rate and
&
Joins Bache Staff
Employment
The overall tone of the general commentsY's
« i
DIVIDEND
mailed.
*
A
Ohio—Jairjes H.
Williams
change,
lower.
_
a
a
their June inventories
are
•
joined the staff of Liv¬
120
in
\\
cen ts
this
and
are higher
than May,
The build-up of steel stocks con¬
area where buyers are adding to inven¬
tory. The majority still are trying to keep inventories at the mini¬
mum necessary to meet current
production needs.
while
single A rating this
a
.
clared
change,
tinues to be the only major
successful group fixed a reoffering
of
very
Mouth
to
money
ingston,
Interestingly, several members reported dif¬
ficulty in maintaining inventories of some raw materials sufficient
to keep pace with
expanding production'schedules. On the other
hand'some members still talk of 'living off
inventories on hand.' A
.
Carrying
price
years ago,
de¬
year as is clearly illustrated
by the results of bidding yester¬
day for Long Island Lighting Co.'s
$25 million of 30-year bonds.
a
should avoid for¬
on
LONG ISLAND IIGHTING COMPANY
...
material inventories.
past
for
we
report prices up, 65% say there is
indicate prices are down.
reports again
of
result of
a
Hand to
cost
tions has risen sharply within
issue
as
For June. 32%
only 3%
staff
Company, 80
Hanna Building.
Some gre enthusiastic
usual fluctuations
bentures.
The
that,
NOTICES
L.
(Special to The Financial Chronicle)
few down).on regularly
reported commodities and services, several
of our members told of increased costs of
warehouse space.
This
'would appear to be the result of buyers
adding to steel inventories
and the resulting scramble for
places to store it. Generally, price
increases are minor and there is no wave of
inflation in any seg¬
to
the
.'Via-
SANTA
more
to the
Robert
—
COMMON
buying less.
are
DIVIDEND
St.
.
Statistically, the largest number,'-.39%,
piffchases; 30% state they are
economy.
.with
next week's
*
•
Vsav they are not making any foreign
issue calendar remains
for
doubt
no
eign ..buying because of its possible adverse effect
-
slender
There is
adamant in their belief that
are
Mass.
Burbank
Baum has
montlf sought to determine the atti-
substantially less than domestic prices.
"Others
t
CLEVELAND,
Abroad
about buying foreign
items, not only because of the dollar savings,
but also because they believe these
purchases will tend to retard
inflation. •'%'■'%
it
expansion
recognize
picture and
money
by
Buying
ol buying fabricated materia,s and equip-
sources.
'
(Special to The Financial Chronicle),
on
.
copper and gypsum wall board.
(Special to The Financial Chronicle)
say
much lower labor rates,
many items can be purchased from abroad
at
and
figures
finance
to
seems
considerably.
evidently
funds
to
were
high. But that attitude
have
foreign
production and
weight of things
current Treasury
apparently changed attitude of
prospective corporate borrowers.
ket
members
buying foreign materials and
'equipment.! There is almost no argument thai the purchase of for%dgn/raw materials which are. not readily available in the United
stal^ is quit(, in older. But, there are
widely divergent views
the
and
Our
'
price
Quizzed
:-;>Qur special question this
pretty
their shelves of
to
on
be
dealers
"
of recent,
Added
on
issues.
saving feature for the
well cleared
nants
take
such
seems
writers
to
leveling.
members
our
Purchasing Agents
L"
as
to
reduce
their
Treasury
portfolios but. in addition, are not
too
Summer
is still
.
school students are
m
posed
-such
seasonal
oil,
.Joins Livingston, Williams
indica¬
some
*
•
Purchasing
are
S.
Federal
"Employment has improved again, although
college and high
having difficulty in finding Summer jobs.
.
by a disposi¬
buyers to back
ul
make
Hume
A
Nelson
change.
or no
.
Fuel
are:
Lurensky has joined the
tude oP purchasing executives toward
Again,
•
BOSTON,
further into the future.
away
in
normal
a
but rather
tion of dealers and
purchases
ware-
equipment.
acetylene, butyl alcohol, electric light bulbs
(Special to The Financial Chronicle)
employment in the
special question, 30% of the
more from abroad than they
on
electrical
Joins Nelson Burbank
Practically none are
increasing their inventory investments to hedge against
higher
prices. Very few are willing to extend their purchase
commitments
in
dropping their bids a bit as a pre¬
cautionary measure. In a word,
the Treasury market has not been
plagued
by
any
heavy selling
"
of
"Most of
Government bonds, etc., should be
pressure
a
remain 'inventory conscious.4 There is
great reluctance to add to stocks on hand,
except to protect against
special situations as in ,the case of steel.
lending base.
Accordingly, it is not surprising
that
as
summer
despite, the general upward trend.
to
in¬
to
a
buying
are
some
re¬
very good, but only 46% report
improvement,
compared to 60% supporting last month. A small
minority of
6% state their production has
dropped in the last 30 days. New
orders continue to be received in
satisfactory volume, with 42%
telling of increases, 48%,no change, and 10% reductions.
"•Commodity prices are still inching higher, but the movement
is selective. Where the
supply is abundant and the demand weak,
certain items such as copper and fuel oil
have dropped in
being able
rather profitable
at
latter
sell
banks
to
answer
they
iron and steel,
valves,
bits,
,
oil fields." "
as
Treasury must raise additional
funds
■
production
the
however,
state
seasonal
Agents Business Survey Committee
states, "there
back
in
In
oxygen,
scrap
drill
"In short
"Business remains brisk," is the
composite opinion of purchas¬
agents.
However, the National Association of
ing
being un¬
of change
anticipate
they
less
situation.
money
the
segment
normal
a
did 5 years ago and the rest
report
•
the/ market
present,
able to figure
'
.
more/br
for
seem
the
for
away
that
'
expect
anticipate continued good
few months.
the money market. Treasury obli¬
ease
Latest polling
widely
supply are: Steel in many forms
(sheets, structural,
galvanized, stainless, plates, etc.) and steel
castings and tubings for
good with most
very
Lead,
cotton,
paper,
"On the down side
business out¬
inventory investments
prospects for
over
showing production is still
hedge against inflation:
aggravated
now
disquieting trends in the N.A.P.A;
members remaining
"inventory conscious."
veals members are not
increasing
The secondary investment mar¬
are:
and rope.
Brisk Business Continues
no
costs,
formaldehyde,
Purchasing Agents Report
are
were
dispersed geographically.
house
There
Also, the reports
47
II. BKOWN
Vice President and Treasurer
PROGRAM
Commercial and Financial Chronicle
The
48
.
.
.
Thursday, July 9, 1959
(148?
York
BUSINESS BUZZ
^
on
#
•
State
two
from the Nation'*
/f
g~4
H
jlJL
Capital
litical
will
State"
such
the Republicans
for
years
18 to
27,
the gen¬
sometime in
for statehood June
one
it will not be until after
election
eral
or
President Eisen¬
issue the statehood
that
August
will
hower
several
to
proclamation. Then all formali¬
have
will
sister
her
with
the
days
theoretically
ago,
the
At
he
time,
same
hopeful
Is
the
delegates from
Hawaii will go to Los Angeles
next
July
prepared
to
cast
Democratic
their
votes
Bridges
Con¬
three
WHAT do
"Just
mean
you
pounds
every
I'm gaining more
day?"
his nomination.
for
Atomic
the
resentatives,
tons
munists
Mr.
Eisenhower
ap¬
Territorial
him
pointed
for
pulling
Mr.
Q u i n n.
1957.
in
ernor
Capitol Hill and
on
are
Ua\ /aii
predict that
between
Mr.
Quinn
will
Burns
the
the
be
upcoming
the
the
in
like
and Mr.
closest of
the
U.
chief executive to one of the
nomination
ventions
Hawaii
from
year
a
regarded
was
as
Democrats captured
when
time
first
the
in
Re¬
1954,
majority.
people,
one-fourth
of
the number are Caucasians.
going to be politically
strange in next year's big Presidental c a m p a i g n when the
candidates
for President
and
Vice-President or their repre¬
sentatives will be flying more
than
2,000 miles over Pacific
waters
to do some politicing.
Of course, it
is not a "must"
that Presidential or Vice-Presi¬
dential candidates make stump
in every state.
speeches
years
neither major
party
Presidential
po¬
nom¬
campaigned in the South
because
it
was
regarded
as
a
political cinch that it would be
in
the
Democratic
However,
that
has
column.
not
time
in
the
described
region
long¬
the
Solid
as
South.
Mainland
States
1
tians
major
of
total
was
less
Beach
1he
Air
of
in
a
United
Okinawa,
From
racks, just
a
Schofield
short
Bar-
start
be
a
the
defense
or
lot
of
That
Federal
foremost
employer
American
Many
is
on
buried
tional
in
than
of
of
Ger¬
many, 460 Park Avenue,
York 22, N. Y. (paper).
New
Denmark,
Denmark,
Washington, D. C. (paper).
Economic
description
of
islands:
shore
gave
the Pacific
"Hawaii is
this
off¬
the
1959
—
window of the Pacific
through which the peoples of
the East look into our Ameri¬
Electric
Statehood
Third
important
N. Y.
-picture
front
can
will
in
room
.
.
.
particularly
be
future dealings with the
our
peoples of Asia, because a large
is
of
^/Oriental or Poly¬
extraction."
nesian racial
Perhaps there are few places
earth, if any, that has a cli¬
mate to equal Hawaii's# That is
why it will always be a tourist
attraction.
The
word
"aloha,"
on
which
means
a
Republic
and Alaska.
Seaton
Secretary
of
General
Consulate
Federal
the
warm
hello
or
goodby, plus affection and
kindness, will become a more
common
word
for Americans
Survey
of
Embassy
of
Utility Industry Statistics
Year 1958—
In the U. S. for the
Avenue,
750
Institute,
Electric
Edison
New
York
17,
(paper), $1.50.
Federal
Reserve
Bulletin,
June
articles on
Public Debt Management, Mem¬
ber Bank Earnings, etc.—Board
of
Governors
of
the Federal
1959
Containing
—
Reserve
System,
C.
D.
($6.00
(paper),
General
Level,
Washington,
600 per copy
per year).
Theory
of
Price
the
Output, Income, Distri¬
bution and
Economic Growth—
Sidney Weintraub—Chilton Co.,
56th and Chestnut
Streets, Phil¬
adelphia 39, Pa.
Coast
it
aboard
is only four
days.
When
the
What
happens
on
Capitol
in Wall Street will affect
Hill
or
the
Wongs
Honolulu
and
more
Smiths
the
in
the
of
future
than it has in the past. And the
five
hours.
The
two
send
Senators
to
that Hawaii
already air-minded
the
same
hopping
the
two
the
island
will
Washington
will,
voting
have
strength
Senators
that
Gold
in
World
Monetary
Affairs
Miroslav A. Kriz — In¬
ternational Finance Section. De¬
Today
—
partment of Economics and So¬
ciology, Princeton University,
Princeton, N. J. (paper), on re¬
quest.
that
N e
w
Attention Brokers and Dealers:
TRADING MARKETS
Botany Industries
Indian
Head Mills
Southeastern Pub. Serv.
for
at
fO^G
Our New
Carl Marks & Co. Inc.
York telephone number if
CAnal 6-3840
Pacific
islands, and in the Korean
are
liner
are
Section,
(paper).
Figures—Press
and
the
of
the
Mexico, Nevada
Vienna, Austraia
Facts
—
Official Films
fell
Harbor,
Dakota.
South
Dakota,
Market
Bankverei n,
Creditanstalt
Berlin:
the
to
Relationship
European
the
warm sen¬
who
year
cost
thousands
soldiers
New
North
last
$166,306,000. This
higher than collections
Hampshire, Vermont,
was
why
mainland
the
on
Hawaii.
Pearl
is
Government
Islands. There is also
in
Hawaii
in
to
amounted
opera¬
activities
money.
Larger
sum
A.
Richard
in. the future.
West
flying to Honolulu it will
less
because
tions
possibilities
appear
well-de¬
veloped.
Federal income
tax
,
drive from
military
the
one-half
islands
these
few weeks during
season.
In
1958
jet commercial passenger planes
Army keeps in readiness some
hard-hitting,
combat-ready
troops.
of
visitors
175,000 tourists vis¬
than
Pearl Harbor and Honolulu the
All
of
10,000. Now that
visits famed
Waikiki
luxury
and
from
directed
are
number
than
ited Hawaii.
Japan, the Philippines and other
islands
trade,
and the pro¬
products, is a
Pacific
the
-
Force
tourist
of income. In 1922,
every
From
Operations
farm
summer
more
Aleu¬
the
the
Austria's
collections
Re-"
Energy
—
Tybout — Bureau
of
Business
Research, Ohio Statfe University,
economic
Hawaii's
and
Planning
Columbus, Ohio (paper), $2.
of Democracy
of
Most
percentage of the population of
the
source
the
basin.
-States
$115,000,second
sugar.
number
of
operations,.
around
and
at
pineapple
agriculture
cessing
em¬
grown
Showcase
Hawaii
center
to
22,000 people an¬
than
course
after
Punchbowl
war
Na¬
Cemetery.
FOREIGN SECURITIES SPECIALISTS
•20 BROAD STREET
TEL: HANOVER 2-0050
been
true in the last two nationwide
elections
the
is
to
rank
Of
No.
Pacific
Navy's
timent
For
litical
inees
world,
provides employment
gives
000,
islands
the
on
Hawaii.
is
It
the
is
Sam
65% of the
Pineapple
or
estimated
output,
as
far-flung defense stretches
from
the
West 'Coast
United
Of the more than (500,000
approximately
Most
worse
This
Hawaii will be the only
state with a non-white
living.
acutej shortage
clip
fast
at a
since World War II.
of
The annual value of the
nually.
Largest Employer
the
.the
history.
had been growing in the islands
.
S.
of
Jsince World War II. Inciden¬
^
problems
grow
supply
production.
for more
con¬
However, Democratic strength
tally,
of
an
will
of the
85%
States
pineapple,
land, and
with its
military forces. Pearl Harbor,
one of the great natural harbors
trol of the territorial legislature
for
cost
produces
production utilizes about 75,090
acres
of
intensely
cultivated
the
in
has
that
Montana, Idaho, Wyoming, New
United
world's
population increases.
ployer
avow.
a
stronghold until
publican
other
It
Uncle
con¬
has
has
it
oPland.
will head the Hawaii delegation
Presidential
high
all
of
contests.
$50,000,000 is in irrigation
canned
showed
that
Communists.
years
Hawaii
race
Either Mr. Burns or Mr. Quinn
as
few
past
Hawaii lias many
this
in
Hawaii
Senate
before
committees
.House
invest¬
industry amounts
Capital
cane.
nearly $200,000,000 of which
total
a
conducted
ings
Gov¬
Observers
in
in
produced an¬
nearly 200,000
facilities.
couple of telephone
booths. Not so in Hawaii. Hear¬
sippi
than 1,000,000
worth
nearly
are
from
of
about
all
put
sugar,
ment
to
the Com¬
the State of Missis¬
could
You
more
of
acres
overnight.
shipping
that
nually,
Inter¬
the
of
header
Senate
the
$150,000,000
Harry Bridges. He is so power¬
ful that he can tie up the island
standard bearer.
Com¬
assert¬
ing
national Longshoremen's Union,
the House of Rep¬
is the Democratic
Interior
But
radical
President Eisenhower and the
elsewhere
from now on.
Hawaii has its troubles. The
r
mittee earlier in the year
fore
Americans will
more
Into
of
Seaton
biggest single individual enemy
of
the island
is the powerful
nominee, and
the Territory's
last appointed
Governor, Wil¬
F.**Quinn, 39. is the Repub¬
Republicans
loved
always
be traveling there
liam
lican
and
i. o r Fred A.
presented testimony be¬
retary
Pacific islands, and
balmy
more
portance, both the Democrats
and the Republicans are pitting
their best known political fig¬
ures.
John A. Burns, 50, who
was
elected in 195(5 and again
in 1958 as Hawaii's non-voting
delegate to
haVe
Power
source
Powerhouse
a
Travelers
the people will elect
Governor. Because of the im¬
gressmen,
a
census.
Democrats in their
help the
however,
equal footing
49 states.
electing
1960
[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.']
Race for Governor
Besides
like the
other 48
basis, of popula¬
the
on
Hawaiian's ■;<; believe they
get two House seats after
will
important
already
seats.
435
even
campaign.
ties^ will be completed, and the
of "far away" islands
Z, 100. miles off the California
group
coast,
than
is
tra¬
before it of¬
ficially raises the American flag
with 50 stars over the islands.
Sen. John F. Kennedy, regarded
as a front running candidate for
the D e mocratic Presidential
nomination, flew to Honolulu
voted nearly
While Ilawaiians
tion.
Japan.
politicaly,
regain control.
to
states,
combined.
Hawaii
the
its
to
Hawaii and Alaska will
portioned,
and
against
census,
return
-
then have their House seats ap¬
count
Alaska and
Honolulu
nearby Pearl Harbor were
the, jumping
off points for
many, many thousands of Navy
and
Army
men
in the war
people
will
Both
census
the
next- April,
Nevada
Congress that it may take years
and
one
and
get
population
ditional
decennial
the
show the City of Honolulu,
Hawaiian Capital, to have
more
political stranglehold on
a
1960
House
Idaho.
or
taken
the
to
only
temporarily,
to/437 seats. However, after the
is
—
100
•-
The
may
send three
two Senators
and
one
Representative —- to
Washington. The Democrats are
favored to win. The party of
Jefferson and Jackson now has
going
is
State
Congressmen
' ■.%
State'
When
the 50th
as
seat
the
of
.v
•
.
this would raise the House total
Montana
general election.
The "Aloha
House
population of the "Baby
is larger than Delaware,
Nevada, Vermont, Wyoming or
Alaska,
and
about
equal
to
though it. will not be a whole¬
thing from a strictly po¬
standpoint
because
of
the
already
lopsided
Demo¬
cratic majority in Congress, it
appears Hawaii is preparing toincrease the majority in its big
some
July 28
Population
Large
it
total of 60
a
two-thirds
of
Senators.
Hawaii
Relatively
C. —Al¬
D.
Hawaii,
give them
short
:.
WASHINGTON,
in
senators
senators, with only 34 Republi¬
cans.
This would be only one
W d*k11
JL \J Iv
l>\Aj
f
Capitol
to
Political Complexion of Congres'
If the Democrats should
^lect
would
Behind«the'Scene Interpretation*
sends
Hill.
•
NEW YORK 5f N. Y.
TELETYPE NY
1-971
LERNER & GO.
Investment Securities
Island's
Of
Economy
course
Hawaii's
10 Post Office Square,
economy
is tied in closely with the sugar
and
pineapple
industries.
Sec-
Telephone
HLbbard 8-1990
•
Boston 9, Mass.
Teletype
BS 69
@FedFRASER