Full text of Commercial and Financial Chronicle : June 11, 1959, Vol. 189, No. 5854

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

'Uft

15

BUS/,

ESTABLISHED

UBf^RySTf>ATic

Volume 189

Number 5854

New York

Price 50. Gents

7, N. Y;, Thursday, June 11, 1959

Copy;

a

EDITORi
..

jT

•

,i

■

i

%

lOsiRot Too Late to

'

>

..v,, '

>:■ f

,9

,

f

At three

duty,

«.

points Congress is now faced with the

By EDWARD N. GADSBY*

1 SEC

portant changes in the laws governing borrowing

blessings of the Administra¬

.

-

tion and sometimes without them—launched one

spending program after another that the Treasury
national
urider
on

debt, increases which

not available

are

existing ceiling legislation. The rates paid

savings .bonds have for

of touch with

ent upon,

a

good while been out

realities, leaving their sale depend¬

emotional appeals,

or

at the worst ap¬

peals to those too ignorant of current conditions
know that

to

where.

of

nation

the

which: may

increasing importance of public utility

financing, knd since this field involves many aspects of
joint interest to the Federal regula¬

limiting the interest rate

the Treasury has now become a

general

money rates in

m
*

"
.

Two of these

statutory provisions, the upper
Treasury is permitted
'toborrow and the ceiling on rates of interest that
*

limit

the amount the

on

be paid,

may

>
'

s

a

future.
the

are

These

two

.Commission's

Ed ward N.

public spending practices; and improper business- *
formulas. Convinced that it is not
politically impossible in a. democracy to state the facts
and to ask the public to take a- correct prescription for;
economic sanity, the author offers his own program to
translate productivity into lower prices,: limit wage in¬
creases, and end waste in government.

labor wage jetting

v

The United States has enjoyed almost continuous pros-*
perity since the end of the war. Hourly wages in manu¬
facturing industries and personal income in general have

than

THIS

ISSUE—Candid

of New York

on

June

has

Public

Municipal

Securities

*

spectacular than the figures just cited

might indicate. If allowance is made
for the 30% depreciation of the dol¬
lar and the fact that the

grew-from

141

to

G. C, Wiegand

about

0.25% a year since the end
politicians and labor leaders
demand that the growth rate should be 5%. The original
draft of the Democratic Platform of 1956, for instance,
of

the

while

war,

some

<

Continued

today's

in

PICTORIAL

STATE

and

SECTION.

-

INVESTMENT

.

'.'

*'

YORK ANO AMERICAN

15 KROAD STREET,

-

Pasadena, Pomona, Redlands, Riverside,
San Diego, Santa

OF NEW YORK

•

014-1400

TKUKTVPC NV 1-2M2

California

Bond Dept.

Net

Distributor

Ana, Santa Monica

Inquiries Invited

STOCK EXCHANGES

NEW YORK 5, N. Y.

COIUSNHAM

T:

' *

-

»

Offices in Claremont, Corona del Mar,

Burnham and Company

,

Bonds and Notes

;

BOND DEPARTMENT

Encino, Glendale, Hollywood. Long Beach,

CABLKl

•

-

Housing Agency

Members Pacific Coast Exchange

S EC U RITIES

MEMBERS NEW

Dealer

j.

i .

Associate Member American Stock Exchange

THE FIRST NATIONAL CITY BANK

Y.

Angeles 17,

Members New York Stock Exchange

BONDS

BANK
bond department

623 So. Hope Street, Los

i } H >-\\ &'» M '"»• I O T.<.

' t iVt

Public

California

°f

CORN EXCHANGE

'Underwriter

33

page

State/Municipal

&

MUNICIPAL

'DISTRIBUTORS':'

•

CHEMICAL

N

on

photos taken at the Annual Field Day of the Bond

5 appear

V

and,

~

IIAnover 2-3700

30 BROAD ST., N

population
million, the

175

real income of the average American
has increased on an average only

and
UNDERWRITERS

.

telephone-:

even em¬

Actually the economic growth since

J?- i\ .

Housing,

State and

-

about

the end of the war has been far less

U. S. Government,
f, *

increased

ployment are at record levels. In
short, most statistical indices poini
to a high degree of prosperity."

in

.

doubled; the Gross Na¬

Product

110%; stock market prices, industrial

Gadsby

.

To

Teletype: NY 1-708

New York

on

Southern

THP

.

.

Chase Manhattan
BANK

Securities

Correspondent—Pershing & Co.

Active Markets Maintained
Dealers, Banks and Brokers

CANADIAN

CANADIAN

SECURITIES

T. L.Watson&Co.

Municipal Bonds

BONDS & STOCKS

'

ESTABLISHED 1832

Members
New York Stock
;

Exchange

American Stock Exchange

Slock Inquiries

Expanding
On All

Canadian Exchanges

NEW YORK 4, N. Y.
TTRST

:/

£oidhu>e4t COMPANY

'

'

■

♦

DALLAS




•

PERTH AUBOY

-

CANADIAN DEPARTMENT

DIRECT WINES TO MONTREAL

AND TORONTO

115 8R0ADWAY

NEW YORK

1

NORTH LA SALLE ST.
CHICAGO

MUNICIPAL BOND

Doxrao* Securities
Gkpokaxkxi

Goodbody & Co.
MEM8ERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

Economy
i

•

Teletype NY 1-2270

25 BROAD STREET

for California's

Invited

Commission Orders Executed

40

j

to examine aspects J

ous

prob¬
policy

Utility Holding Company Act of
1935, and the considerations govern¬
ing the balance-sheet treatment to be given to the accu¬
mulated credits arising from deferred tax accounting in
Continued on page 14

capita f

our
economy: which^ cause Concerns This Dr. Wiegand >
does in excoriating what he considers are: "defunct eco- ■
nomic ideas" inherited from the depression years; rain- '

Conference of Public Service Commissions,San Francisco,May 27,1959.

IN

per

production, retail sales and

near

?

of

seems

page c.o

Club

real

and -not the mnch

year

desired, then it is time

*An address by Mr. Gadsby before the Mountain-Pacific States

PICTURES

DEALERS

r

i

and tmlpat i

a year

other, it

OQ

mnrtn

on

vaunted 5%

with respect to the free refundability
bonds issued by
public utility
companies
subject
to
the Public

throughout the nation, it
continued

advance*' 0.25%

income

of

wishes to continue to draw funds from the multisavers

8%

average

tional

lems

popular conceptions of interest rates.
Neither should ever have been placed on the
books, and the sooner they are repealed the
bitter. Obviously, if the national government
tilde of small

indebtedness: increases

more

the

considerations stemming

ceptions or political

from foolish

our

particularly pertinent
to discuss the jurisdiction of our
Commission in general and especially
to touch upon two particular probleins of current mutual interest, with
respect to which we have either
! taken action or may take action in

both born of gross miscon¬

are

When

gains 4% and if, ignoring debt,

agency in particular on the one hand
and the state commissions on the

/

real burden with

much higher than they

so

<

:

tory bodies in general and our own

term issues of <

be

used 'to be.

In view of the

the statute

on

supporting

tax credit treatment.

they could do much better else¬

Finally, legislation long

books

arguments

r Southern Illinois
University
Carbondale, Illinois

.

not avoid further substantial increases in the

can

•

;}

;

Prof lessor of Economics,

"free refundafadlity" policy, and .announces that the Dec.-i '
30,1958, proposed removal of deferred tax credit as part'
of equity Capital is still nnder advisement. Says recent
studies reveal no significant cost or market-acceptance
differences of callable* versus non-callables, and claims
rights of investors, nevertheless, are safeguarded lib other
compensating ways. As to deferred tax accounting ques¬
tion, he intimates what the decision may be in noting "
registered holding company - systems are increasingly •
classifying accumulated credits outside' of the equity
capital category. Chairman calls on state public utility
commissions to adopt a parallel redemption policy, and
solicits their cooperation and advice as to proper deferred

by the Treasury. So extensively has Congress—
sometimes with the

head pointedly reinforces

By GUENTHER C. WIEGAND

.,

Chairman, Securities and Exchange Commission

not to "say the necessity of making im¬

;

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

DEPARTMENT

Bmtk. of America
NATIONAL

no s

ASSOCIATION

300 Montgomery St., San

*

Francisco, Calif.

The Commercial and Financial Chronicle

2

;

Thursday, June 11, 1959

...

(2622)

The

Brokers. Dealers only

For Banks,

different group of experts
la the investment and advisory field from all sections of the country
participate and give their reasons for favoring a particular security.

to
active
hurry, you'll find

When it's important to you

markets in

a

they to be regarded,

are

ourlarge and experienced

trading department can be a

GEORGE

big help.

Paper Company

zine

New Yoifc Hanseatic
Established 1920

American 8tock Exchange

PHILADELPHIA
Private

"the

Principal Cities

tute

STOCKS

C.

Astariu

of

ISSUES J

INACTIVE
.

Perhaps

iiiSXT
s

4

submit your offerings.

,

4

help.

we can

!
4

tofore unequalled

Metoforst 4bflfr,-<00H0. Stin£.Jixeh; ..
Mosfon AJtfflt. Hock Sxch. JAtnocJ*

printing

■:*

lOCWf STREET, mtA. t hhha.

for

this is

that

remarked

to

able

no

one

cariis

er«iit
nected

item

LYNCHBURG, VA.

operations

and

with

is

—5-2527—

Private

Wire

TWX LY 77

New

to

York

The Cross

automation

the

/

:

-

t-

■

■

^

:

GESTETNER LTD.
"A" REG.*

the

UNILEVER N. V.
>

A. D. R.

jne

remaining

60<&

remai nmg

ou /©

capacity

of

ot

Thf

for

expected

1959.

sion
sion

tern

tax

Available at

Brokers &*.Investment Bankers..

j

Opportunities Uniimited
IN JAPAN

+

r*

a

34-on- the New York Stock Exchange versus 51 in/1956) the
stock merits a strong recommen*

^

Write
,

.

:

for

Members:

55

New

York Stock

V,

Research Department

.

.///

•

>

•

;

.

,

(

,

61 Broadway, New York
Telephone:

York Stock Exchange,
Stock Exchange
/

Liberty St., New York S

Tel.: BE 3-8880
private

Teletype NY 1-4686

Wire System




to Canada

6,

Green

BOwling

9-0187."

,f

is not

This

.

orders

an

offer

for any

Ypr

solicitation

or

particular securities

//

>

tions,

necessityof''shutting

the

machinery

further-

/tion.

sec¬

WEINBERG,
GROSSMAN

sulting in high
earnings on
net

•/and

ondly, it has
profit

high

re¬

worth;

thirdly,

engine industries//; Ia,'
to / its . manufacturing,
activities, Cross also conducts an
industrial engineering and .man¬
agement consulting service, which

plows back all
-

its

of

earn¬

ings, thus compoundingthem
,

accounts

.

H.

Wm.

..

.

.

«atw

it

-

N.

Members- .
/' 1
Security Dealers Ass'n

.'/.<■
Y.

i|*:
j;

Render
in

a

brokerage service* /

all;; Unlisted Securities
for Banks and Dealers

*

/M

about

for

of,

5%

46

Exchange Place. New Yark 5
Phone: WHitehall 3-7830 V

/

-

$
L

Teletype No. NY l-g762

rev¬

and provides it with ample
opportunities to develop new sys-

enues

Kenner

a
rate*
Gross is no
ordinary manufacturer... of

/

,

d'iesel

/ addition

it

& CO. INC.it
/"

' '

'

Today, Cross' chief customer is
the' automobile
industry, which
/accounts for about 60%. of sales.
Other large customers, include the
farm equipment, air conditioning,

margins

•

S.

consti¬

a technological- barrier1 to "
further progress of aufoma--

the

of

and

Sterns*

Aotnallv

all

mas'?

nrorhip-

ma-/*?1™5;, ^ciuauy, an mass proauc-

i<?

tlon. industries, are»potential., eus-,

en--

site expa/sten

of the concomitant machinery

.^ons.,- The pressure Vof a
'SAvmG*

the ..recession

to

a

rather

of

1957-

the

growth of both

pre¬

mati0n

and

net

earnings.

per¬

As

a

concent

of

inelndec

marhine-

nro-

enm-

plexes up to 1,300 feet in length,
capable of completely machining

The years 1957 and 1958 did not

this
favorable
trend. Higher labor costs and less
than capacity operations for both
the
industry dnd the Company
contributed to price competition
and

gins.
ities

up

served

to

to

lower

profit

V-8

automobile

Machines
became

of

this

scope
onlv

automatic

the

positioning

,,

the

product

work station to the next.

one

in

of

transfer

turn,

ment

became

feasible

,,

.

through

the

of its

,

company's
machine

Prior

working

wwdra snorier workinb

wherever

processes
*

.

-

J;

'

:

v>*

Over-the-Counter

■

.

.

company s present plant, is
Sa!fS V0
of. $25,000,000.. :jBased upop_
nnn

o

con-./!?^&margins .of 20% to
and

from

This,
onlv
"

develop-

control unit.

including the patented
Meter."

.

shorter

-

through

oractical

with"the

coupled

toward

.

block.
and size

of "sectionized automation,','

cept
with

:

engine

Cross' development of the

mar¬

Start-up costs of new facil¬
introductory expenses

and

a

d

hours» and the desire for higher
Hying.: standards, provides t addiHdnaP incentives'' Lo automate all'

auto-

comoanvV'end

The

t

"industrial

the

of
the

bv

unique pat-

for

">w»6k1efa.

Prot>ahiy constitutes the turthest,
penetration

in the future
m tne luture.

measure

Exchange

Stock

Digest, and our other reports
: that give you a pretty clear I
picture of the Japanese
economy as a whole. ■*'/

as *yeii as macninmg

rr^JT thtiSafm7i:Pfi0d in"
ased from 5% to 7 ,2%.
Alfred L. Vanden Broecfc & Co.

///':

Monthly

Nomura Securities Co., LU.

■'£' ."W

ufactunng systems and the,build-

centage of sales the pre-tax fig¬
ure
increased ifrom roughly 8%
in 1949 to 15 %. in 1956.
Net in-

★

our

dation for growth portfolios.

.

★

/

/v

^A projected three-year

58 Oxford set

★

^l'.

k

tuted

the

frontier

Request

J*1, v

developments,

:■

alsn rontrihnfp

of manufacturing facilities enhances prospects for continued sales expanPrior

on

■

'

111 Broadway, N. Y. 6 COrtiandt 7-5680

expansion' program

•Review Available

I'
*'1

' •'

J", JSVi

to

Bou ght—Sold—Qu oted

Affiliate of

plant. This will be the first••cnin®
1001s.
Katner,
t0mers-^'*esoeciallv ^^ iri^'viVw -of
full year of operation for the im- *»««* ™ th? conception,»„designi
Cross!.v automation of' assembling
portant new North Star Coater. ai}d engineering of complete man- functions'*''^as well ' as machiniim
this

New nrodurts will

R. L. CRAIN LTD.

ranacitv

*

•vji ^

Fofitabjlitjr, appears; ih • pinspect,,'
AtrcnlomD of*
<siiKcfnnlin1 rlibnAim

a

/complex

industry;

record will undoubt¬
edly be set this year as the re¬
sult of several factors.
In May,

and other customers will consume

;

Inc;
'

(\ti,. ■ '

/

Tokyo, Japan

.

automation

new

1958, the National Geographic So¬
ciety paper mill at Lawrence.
Mass. was purchased and all the
society's requirements will be met

••/•>,

Yamaichi Securities Co., Ltd.

expansion plans for years to
come.
Better- than average profit...

in

the

$62,783,000 last year. For the first
quarter of 1959 sales were 20%
ahead
of
the- same
period last
A

,

and

participation

sales

decade

past

""

"

^pects. First, it provides .^^W^pecifieatio^ such
eluded the development of prevehicle for

a

busi¬

in

Interest

*;

product

•" -

■

firm position

a

.

new,

of New York,
!,;

/'/-"***

occupies

write

or

Yamaichi

in

capital ;gains," -down a.complete"machine or proThe Cross Company stands out in- duction line to effect repairs or

/on-

of

.iy CaJl

Securities Company

the fu- #
now

seeking long-term

an-

among

During

year.

oxford

and

cur-

Company

For current information / /, ;

/
:.

f.

have advanced from $37,288,000 to

For Banks, Brokers and Dealers

..

From the standpoint of investors

already considerable and
the purchasers of
this product.
:

City

.

■'

car-

1

A. C. Allyn & Co., Chicago. 111.rMembers: New
Ameriean Stock'Exchange and. Midwest

is

IBM

LD 39

<

.

total

exceed

,

growing fields of

processes..

STfiADER and COMPANY, Inc.

ovtonsive

hnc

in the

expansion

prospect.

i

introduced

paper

r»rndn"pt

nlication

ness

earnings

of

WILLIAM; H/ KENNER

is another new product

year

Thi«

Commonwealth Natural Gas

securities

of

possessing promising possibilities.

Life Insurance Co. of Va.

'

branch offices

STOCKS

ture will have to await fulfillment

Net working capital/ amounts
$15,743,070. Cash and market-

department.

Carbonless
last

but

has been

liberal dividend in

more

,

Vv

produce

our

: JAPAN

con-;

.

10,143,000
.

would

iD63

1,

2°%*

from an active and large-

come

scale research

Basset! Furniture Industries

Oct.

to

developments

progressive

many

American Furniture

cost

■

*

In passing it may be

tory types.

to

and

users

'*

substantial discount
potential dilution factor of approximately from book value (current price of

this

of

^

ried over into 1959. ' Reestablish-.
ment of the $2 basis and a still

'■*

4.-

prior

obtained,

are

which rate

stock)

than older and less satisfac¬

more

-

neces:
neces-

superior

advertising

—

HY1-1557 :

La.-Birmingham, Ala
Mobile,Ala.

Direct wires to

"Convertible into common stock starting
margins :• have:/been recorded in
at $38 per share and ranging up to $45 . the past-and /'a return - to, „such
per share. V^cwSoii anli'w Sed;
ff rSVce*d A maximum of 263,158 • shares*.

product attests to its importance
in the trade. These papers afford
economies

Trading Interest In

longer

HAnover 2-0700

-

N.Y.

New Orleans,

dictated a reduction to a $1 dividend basis -in 1958 (plus 1% in

3,127,500

note due 1962-73
stock___ 101,434 shs.

mtge.

pref.

Common stock_^__l,006,434 shs,

super-

therefore,
tnereiore,

Nationwide

■i

Heavy

qualities

i
t

J. CAPlAN * CO

5c/c

Exchange-

19 Rector St., New Yorlt 6,

$1'

,

4%.
'■i'ic

by conventional

coating methods.
is no
calendering is HO

and, ana,-

than

more

4%

for letter press, offset and gravure
with a levelness of surface here-

sary

by

'•

•

J'-

American Stock Exchange.

Members

;../•?\
as a well integrated factor in the
Capitalization consists of:
;//•'/ growing paper/industry/ Its fuserial debs, due 1960-72/: $io,2oo,ooovture
growth appears, assured rasi,
4%% conv. debs, due 1978'io.ooo.ooo
foe result of recent production'

line"; of/top-quality coated
produced by the new trail¬
ing blade process which enables
the production of printing paper
papers

If you can't find a

Members New Yotk Stock

•'

ditions and the need for retention

intermediprobability
still higher earnings in the fu-

*l?re',

plete

home for certain of your

liabilities

<

dividends." Adverse industry

would appear to be an
ate objective with the
George

'

pansion purposes. Book value of
the common stock' equals $44.82

y-.

coming years. Record earnings of
$5.43 per share established in 1956

in

com-,,

a

rent

better industry condi-

for

•' '

Steiner, Rouse & Co.

'

-

tions, should serve to restore Oxford's favorable profit margins in

printing pa¬
pers
in more
than 20 years." *
They consti- "r

INSURANCE

LIFE

looked

greatest

advance

;-v• v~

■

introductionKof
together v with

products,

new

as

company

SAN FRANCISCO

•

to

Wires

late

••

'

■:

operating/.efft-y of cash for capital improvements

increased
ciency and the

year

CHICAGO

•

products,

new

ities,

last /
and
termed by the
oped

York 5

Teletype NY 1-40

BOSTON

devel-'

papers

"•

,

.

Expansion of production facil-

Star" coated

Associate Member

WOrth 4-2300

some

"North

are

(Page 2)

1958. The Lawrence Mill has not per share/•. / : /•</
yet contributed to earnings > apd x ■.><, During 1956 and 1957 the comlosses are still being sustained on
Stock paid $2 per -year in

print-

papers.

Outstanding1'

Corporation

■:

improvement in earnings above
the $2.13 per share reported for

maga-

commer

rial and
ing

book,

including

v

1959

43 cents versus 58 cents

was

Bought—Sold—Quoted

(The) — William
Kenner, Research Dept., A.
C. .Allyn & Co/,
Chicago, 111;.

income for this pe-

Net

1

'

(Page

million.; Not included in current
year. For 1959 as a whole, how- assets are $8.5 million of marketever, the President forecasts an able securities reserved for, ex-

bespeaks

oroduced

120 Broadway, New

rj0(j

Colo.

•

reported for the same period last

quality in its
products, management and assets,
Many types of paper products are
Oxford

Springs,

\. '

;

.

'

•

H.

continued to reflect these conditions despite a sizable expansion
sales.

*

Ox- „..'Cross Company

First quarter results for

Springs, Colo.

of
Oxford

2)

ford's burdens in these years,

>:

Company,

' r

'

Louisiana Securities

Paper Company—George
Astarita, of Boettcher & Co.,

; Oxford

Colorado

to

added

products

new

Alabama &
'

are not

for

Members: New York Stock Exchange
and American Stock Exchange (Assoc.)

combined with com¬
plete Over-the-Counter facili¬
ties, enables you to get the
best possible coverage of the
markets you want.

system,

'■://

&

Colorado

i

as an

ASTARITA

C.

Boettcher

nationwide private wire

Our

intended to be, nor
offer to sell the securities discussed.)

(The articles contained in this fornm

Participants and

Their Selections

C.

broad range of

a

This Week's
Forum

A continuous forum in which, each week, a

Iry "HANSEAT1C"
reach

Security I Like Best

"Tool-O-

25% before taxes, such sales could
r£suH in* earnings ol $4 to $5 per
f^are °n ther I^^ent capitalizature earnings could be
enHapced substantially by the
.

earnings
nbw

in

of a foreign subsidiary
formation.
Historically;

Cross has earned

net/worth

in all

25%

but

to 40%

Natienal Quotation Boreal
Established 1913

on

depressed

46 Front Street
CHICAGO

to

these

innova-

j

Quotation Services
for 46 Years
/

;;

\

Continued

on

page

7

New York 4»4LV.
SAN TRAHCOOO

Volume

189

Number

5854

The Commercial and Financial Chronicle

(2623)

3

i N d E x

And

Public-Private

a

By DR. RAYMOND J. SAULNIER*
.

.

....

i

.

Chairman, President's. Council

Articles and News

Policy

"

of

*

,

a* *■'.&

Economic

It's Not Too Late to Return
to Economic
G. C. Wiegand.
;

is

il.*C

will create

we

said to

so

depend

jobs three times faster than in

new

productivity advance. This

our

maintenance of

upon

.

....

„

K

•

;

;

,

tv

.

Public-Private

a

•]'■} *

^

_

/

^

recent

_

:-v

Of'Sterling

;J

_

and Miles- -Ira U.

.-vsiV,*!"■' ^

V

,

«

*J

•

.

-

hiding

_

T_ _ _ -

_

JCobleigh

and factors

explaining it.

U-

;/5

»"•
10

are

good many ques¬
I might properly
-myself in my remarks,

to

a

address

but of these

tant

conditions

which

or

is

none

spirit

more

interesting
which involve

is

the growth of

provement
our

grown

/

t

our

in

w; ;

;E

J

reasonably
it

/ expect

'!•

grow-

']« next
j

j;

in

the

decade?

Saulnier

*

-

;

To

Jiears.;

in

nl>

of

er

living.

It is the

our/ capacity
further/ improvements

for

the

to
in

maintenance

1

*

-

//

in

...

/

;

.

the

•

1

Happily, in
itions

|rowth

jiave

upon

and

r\v\

'

n

n

nation's

consumer

v*

M

'

the goods

inherent

.

used

index

From Washington Ahead of
the

In

Mutual

Based

Annual
on

what

at

r

growth in

the

United

gone forward at

Recent

wising new and better ways of
)ing things, and the competitive

age

States

address

by

Chamber

Dr.
of

Saulnier

before

Commerce,

Governments^.

in

annual increase in GNP

*

The Market..

over

;;
•
The Security

:

This is

...

over

this

and

.

I

Continued

The

-

on

page

32

PREFERRED STOCKS

*. Reg. U.

-

Spencer Trask & Co.
.

25

BROAD

New York

Stock

TELEPHONE HAnover 24300
Albany
Nashville

Exchange

Boston
/




-

Schenectady

Glens Falls

Worcester

Park Place,
REctor

GEORGE

J.

Publishers

New York 7,

2-9570

N.

Y.

j

)

to 9576

MORRIESEY, Editor

^

DANA

SEIBERT,

-

i"

President

I.'.

Thursday," June 11, 1959

Every

Thutsday

(general news

~
and

43

j

city

news,

etc.).

.

-.-Other

Chicago

Offices:

3,

111.

135

South

La

Salle

Machinery
Installment Sales

1959

Factoring (Notification
and

Non-Notification)

1

by William B. Dana

St.,

(Telephone STate 2-0613).

as

seconu-class

matter

Febru¬

25,

1942, at the post office at
New
York, N. Y., under the Act of March
8, 1879.

Subscription Rates ' >.
T
Subscriptions in United States, U.
Possessions, Territories and Members

Pan-American
Dominion -of
Other'

Other
Bank

and

$46.00 pdr

$72.00

must

be

per

Record—Monthly,

(Foreign

Postage

the

ex-tra).

fluctuatiops in

exchange,
remittances
for
subscriptions and advertisements
made

in

James Talcott, Inc.

year. "

Publications

Quotation

year; •

Note—On account of
the
rate
of

foreign

S.
of

Union, $65.00 per year, in
Canada,
$68.00
per
year.

Countries?

ad¬

issue) and every Monday (com¬
plete statistical issue —market quotation
records, corporation news, bank ■clearings,
and

Reentered

| >

vertising

state

>

•

ary

,

: -U C

TELETYPE NY 1-5
Chicage

25

4

Company
;

Office.

B. ©ANA COMPANY,

WILLIAM

"

ST., NEW YORK 4, N. Y.

:

P.atent

•
•

*

-

Copyright

CHRONICLE

S.

Inventories

(Non-Notification)

ii__

Weekly

Accounts Receivable

•

2 ~

You

to

•

35
16

Like Best

and

FINANCIAL
...

L

■

.The COMMERCIAL and

WILLIAM

Members

1_"

State of Trade and Industry

Washington

~

-

*

i'.

|

■

■

,

Talk

45

You—By Wallace Streete
:

Published Twice

have specialized in

38

Offerings

.1

1.

COMMERCIAL
FINANCING or
FACTORING j

47
8

.

Chicago

For

47

Securities Salesman's Corner..

v

*kr

-

Registration

Security

Los Angeles

Cleveland

31

Report_____

Now

Philadelphia

to

Dallas

4

Securities-.

Prospective

very good rate.
estimates place ^the aver¬

equivalent to saying that

1959.

For many years we

;

a

the last 120 years at 3.7%;

Flint,

Utility

Securities

has

Teletype NY 1-1825 & 1-4844

San Francisco

27

Railroad Securities

-

Flint

Reporter's

Public

3.7%

century or more, one's leading
impression is that economic

fey internal barriers to trade. We
feave an acknowledged talent for

♦An

on

of

the increase of GNP over the last

fieople. We have a broad domestic
liarket, in the main unhampered

.

37

inc.

40 Exchange Place, N. Y.

Direct Wires

Observations—A. Wilfred May_
Our Reporter

request

mackie,

HA 2-9000

46

know about

we

&

Razor's Edge" 22

News About Banks and Bankers

.

Our

Growth

a

News—Carlisle Bargeron____ 16

Funds

improvement depend
Reports

on

on

Singer, Bean

8

Indications of Current Business
Activity_____

economic achievement.

un¬

48

Einzig: "London Stock Exchange Balanced

we -

*Prospectus

7

Dealer-Broker Investment Recommendations

deficiencies, the

commonly

CORP.*
30

Coming Events in the Investment Field

ship

we

ELECTRONICS CAPITAL

Cover

Stocks.

"

;

?

REEVES SOUNDCRAFT

-

Insurance

PANTASOTE

PACIFIC URANIUM

Regular Features

We, !See It. (Editorial)
and

/

—'."i

Business Man's Bookshelf.j_/_

most

usually favorable. We have rich
4nd abundant natural resources,
i^e have an able and industrious

le

31

As

certain

our nation the conwhich economic

%r
29

;

:

23

Honorary Drgree^_

■

request

J.F.Reilly&Co.,Inc.

-

'"I;/ '"./'."-"V'.

■

Business Continues to Boom..

-

short, GNP represents, in a single
number, and in a nonduplicative
aggregate,* our best estimate of the
money
value of our economy's,'
total annual output/'Measured in'
constant dollars, GNP is. despite

-

*

output
services,

and

on

26

—

',7'!."/'■"

Survey Reveals 37% Gain in Capital
Spending-,,

AII+VMII"

annual

goods

'"Prospectus

22

~™

23

'*■, V'./•

*

Bank

ence between

years

been and continue to be

lich., June 2,

*

COMINOL

21

Winners of 1959 Loeb Awards
Announced,

figurjes. >

iml

out of this country and those
receive from other nations.

of

-

.

.

*

-

phuip CwtlM(y Awal.dcd

f
security and other purby Federal, state and local J
governments; and the net differ-,

Favorable Growth Factors

ii

-

national

>mmitted parts of the world and
for the
strengthening of this role
lead.

•

'■

PYROMETER CO.?

V r.; v/■!/
of Economic Expansion -

^

poses

e vigorous
leadership which we
taw provide for the free and un-

affairs

*v:

T

Purchasing Agents Report

ness concerns; of goods aiui sery-.
ices
purchased and utilized for

'

world

V

as
well as private; of additions
to inventories in the hand of busi¬

.

'

the

OIL CORP.

" V

:

Hitchings

the

use

These

TEXAS AMERICAN

j 20

.Monetary Stability: A Prime Condition
/K; —Gottfried Haberler

cilities and all other, types? df "
building and construction, public

iving standards in the future and
:o
strengthen our national secu"ty without the impairment of
urrent consumption.
And it/is
ssential

^

new homes; of machin- '
ery and equipment of all sorts;/
of commercial and industrial fa-

means

enlarging

nake

the

including

coun-

to increase its annual output
fc-the key to our ability to achieve
astainable improvements in our
of-

this, I shall

4L

Attf

show

recent

The capacity: of vour

do

Industry

Current Business Outlook—G.
P.

briefly review the

me

monly called GNP.

^

I; %y

wels

other / nations Irof

Let

18

I. Rogers.

_

have

of

METROPOLITAN
BROADCASTING

Western

Tomorrow's Enormous Oil Needs
and the Middle East
—William R.'Stott___

figures 0
of Gross National
Product, com- /

not surprising that these

thoughtful - V Americans

i

'<■?*£

V '1

-pHsh'cil01 What haS bcen. accom-

tions have captured the attenand /aroused^the concern of

on

of

world.

potential

our

,

"""

i\'

13

to

What's Ahead for Canned, Frozen
and Synthetic Foods
.v —Roger W. Babson__J___

-

And what kinds of

we pursue to realize
for growth?

f^flt is

of

is no wonder
that, with these /
favorable conditions, our nation's ;;
economic achievements have- been

tions
Dr.

to

public and private policies should

I

exergue

Enterprise—Donald

__ _ _ _

advances-J: that
have/ been made "
;under their free economy and that
;/* serve as a standard for the
aspira- .V "*■*<$;'

'

-

I

the

Is Essential
Robert B. Anderson.

Growth Areas of the
Chemical
Richard F. ■ Me ss in g

,

o

ast m'ay wet

Development Bailk

Hemisphere—Hon.

There Goes Free

the

unparalleled... Americans
'good reason to be proud

y/,

the;.:

t? J. H

a s

to

and

CORP.

'

It

:

1

eto fl o m

congenial

PERMACHEM

12

___^

"

How-

fast has

-

-

vancement.

of

economic

welfare.

Inter-American

£

expenditure of/y
great effort in behalf of self ad¬

economy
d t hei m-

a n

competitive
being

to

initiative

11

States Long View of
Canada's Investment Outlook
—Robert- C Heim_____

their

adopted. - We have t a
strengthen our economy ;,
and to improve our economic wel¬
fare.; And, above all,
we.h^ve- a i
political and economic system that
will

than those

our

keen

assure

promptly

impor¬

more

and

that

*PUREPAC CORP.

>

___

•t

.-There
tions

-

vV'-v-"'? ;■

•.

WALL STREET, NEW YORK
Telephone: WHitehall 4-6551

9

A United
*

,

99

>•

past performance

longer worth

ripe for 99 Wall!

Obsolete Securities. Dept.

v6

.

_

__

-

no

;V-

'.--Jk Growing Investor Interest in
savings-investment, and a government to
Motor Carrier Offerings
iNeil J.. Curry
__'
example so that the public and the private sectors to¬
gether make a signal contribution to end inflation, achieve
V":Federal Reserve Board Weakens Small. Business
economic growth and, thus, reach
r—Thenrlorp H. -fiilhnr-t
Theodore T-T Silbert_v~
proper solution to broad
problems of public and private policy.
Dr. Saulnier rebuts
our

are

J 5

________

an

creeping inflation thesis, and summarizes

MAnRESS

Securities

Condition^

Progress of the Federal-Aid
Highway Program
-Bertram B. Tallamy
.1
-1.^

in turn

A

3

__

to encourage

as

set

-

_

stable price level

a

J-*

Commercial Bank Investing
Under.. Reeent
Craig S. Bartlett-l
(_L;

1959, at today's prices, which means a 4% average annual
GNP gain compared to the
3% rate achieved since World
War 1. Among the
assumptions upon which this is postulated
without impairing

-

i

.

.

in

is that

Sanity

___-_i__.________Cover

ONCE UNDER

Blueprint for Economic Growth
and
Policy Guide—R. J. Saulnier

Economic adviser to the President forecasts $700 billion GNP

years

Pago

Advisers

yvj> ?•

Washington, D. C.

*

New

York

funds.

NEW YORK

221 FOURTH AVE., NEW YORK 3,

ORegon 7-3000

CHICAGO •

H,Y»
•

'

DETROIT • BOSTOH

.

|

The Commercial and Financial Chronicle
4

Thursday, Jime 11, 1959

v

..

(2624)

portfolio.- This favoring of

djond-

the re¬

the borrower operates as
of

verse

loan; and,

call

a

Steel Prvductioa

more¬

•

over,

t

»■

Electric Output

of the arrangement followed,
by the'government m its own bor¬
rowings.
Not only • are govern¬
ment obligations without a sub-,;
stahtial Call feature; but actually,
By A.
Savings Bonds and two Treasury
issues (the 2Yzs and the
s of
BORROWER VERSUS LENDER
1962) have been giving the in¬
IN TODAY'S MARKET
vestor, and not the borrower, the
do
issues
without
the option to end the contract well
The present interval of money than
before maturity.
,
among some
stringency is highlighting anew privilege. Inquiry
the abuse entailed in the Call pro¬ large institutional investors dis¬
I
Inadequacy of the Premium
1

•

CfltrlMrtiiajd
'

Retell Trad-

State of Trade

Commodity Price Index
•

WILFRED MAY

-

Food Price Index
Auto Production

and

Industry

Business Failures

J
contracts in the United States

Construction

in April totalled

J

.

vision

in

bond

indentures;

the

borrower

privilege of
cancelling the
contract f

its")

in particular, are taking
against inclusion of the
Call feature. So, at least in some

important
bearing

and

its

in
on

sectors

important

.

without protection

controver¬

sial aspects

stand

a

timely,

Most

had

funds,

termination.

the

of

A.

Wilfred

May

does a call
entail a rise in

borrowing cost.

Buyers of the Con Edison
issue included some in a so-called

the question is
last
week's

-v, "■
offering by the Consolidated Edi-, "Trapped market" in that they
have funds pressing for invest¬
son
Company of $75 million of
ment in a high-grade industrial
5J/g%
Bonds due in 1989, thus
or
utility; some directly lured
affording
generous high-grade
from
lower - yielding
Govern¬
yield of over 5%. This issue's
ments; and a good sprinkling of
identure, following the company's

contains; an unsophisticated investors who do
unlimited
Call privilege giving not realize the true implications
of the inequitable refunding pro¬
the borrowing company the option
of refunding it, either in whole or vision.
in part, at varying premiums, at
For the-Protection of the Investor
any time, on at least 30 days' no¬
adamant

insistence,

We

tice.

unrestricted

The

redemption

feature of this issue, without :any
interval
of
protection,
typifies

that is on the increase
previous Consolidated Edi¬
son issue of 1957 gave 5-year pro¬
tection ' against
calling).
The
course
of the new issue during

practice

(the

high 'cost
additional evidence to the master
and

the

after

current

that

hold

the

SEC,

in

ac¬

cordance with its basic reason lor

scribes

maximum

a

the

benefit of

the

SEC

the

residential building
last year,
Total

premium for
but

borrower,

Contracts for non-residential buildings in April

that

the

only

borrower

exercises his privilege of refund¬

ing after finding it advantageous
to

the cost of the premium.

pay

Flexibility

One-Way

defenders of the

The

maintain

tem

that

Call

sys¬

over a

objectors

the

conducted by Dean

Winn and Pro¬
fessor Hess at the Wharton School,
under the sponsorship of the Life
Insurance Association of America,
Now

nearing completion, the
protection, the consumer will in
study's preliminary findings have
any event get looked after by the
been eliciting the attention of the
various State regulatory agencies.
SEC. Future public discussion of
It is difficult for this observer
the published study should impor¬
to understand how the Call option
tantly clarify the? issues along
with
lessening
the non-profes¬ unilaterally possessed by the bor¬
sional buyer's indifference to the rower—and hence establishing a
one-way street—can be regarded
question.
as
other than grossly unfair to
the investing-lender. Specifically,
Some Implications of the New
whenever money rates decline be¬
Offering
The pricing and yield of the low their present cyclically high
the
Consolidated
Edison
current
Con
Edison
financing level,
gives practical evidence invali¬ Company can on 30 days' notice
dating

one

advanced

.

of the main arguments return his money to the bondto
iustify
the
Call holding
lender, borrow more

feature, namely that it does not

cheaply elsewhere and force him

require

to take

so

"caught."

higher borrowing cost

a

;

-

*

defending Call policy, SEC
Chairman Gadsby points out that
indentures
contain other pro¬
In

offsets, protect
investor rights — as restrictions
against the issue of additional
visions

which,

as

bonds and the distribution of ex¬

dividends.

cessive
Call
ance

with

justifying
of compli¬

But

because

abuses

fair play

y7* ..
The cumulative total of contracts for the first four months of

1959, with percentage changes from the comparable 1958 period
are as follows: non-residential building at $3,606,955,000, up 6%;

building at $5,453,863,000, up 43%; heavy engineering

residential

'yV

22%.

up

Bank

with

fully merit the authoritative
consideration and broad discus¬
sion which is in store for it.

will

•

;.

i

-f. ■

■

Formed in Toronto

a

ago.

jfor

cities

all

Bay

deal

to

St.

Officers

are.

curities

Corporation Limited.

below those of the corresponding
week last year.
Our preliminary totals stand at $24,012,733,559
against $25,318,892,553 for the same week in 1958. Our comparat ive summary, for the principal money centers follows:

Richard
Morgan on June 30 will become
partners
in
Estabrook &
Co.,
K.

Gurney

of

members

Boston Stock

Lynch, Pierce, Fenner

&

Smith


http://fraser.stlouisfed.org/
l
Federal Reserve Bank of St. Louis

NEW YORK 5, N. Y.

.

Offices in 112 Cities

ney

in

the

New

located

in

State St.,

New

Mr.

St.

and

York

and

Exchanges. Mr. Gur¬

firm's

Wall

of

the

will make his

40

INCORPORATED

$12,779,719,261

-

1,147,875,185
1,098,000,000

Chicago
Philadelphia
—

743,922,127

Boston

Still

•%

1958

$14,336,275,657
1.234,075,357
1,115,000,000
701,919,701

H~ i

isS-

7.1
—

+

%\

6.)

a

the

headquarters
York

office,

Morgan will

Boston

office,

be

15

of which he is manager

the stock

department.

'•

Chance Steel Strike Will Be Avoided

to be a slim one, there is still a cl Slice
whe
without a strike, according to
Iron Age," national metalworking weekly.
f
"Iron Age" said this week there is reason to believe the steel
union will be far more realistic in its final position than irihas
Even

of

though it

steel

a

labor

appears

settlement

As of now, the

union is pressing for

a

"substantial"

increase and a costly betterment of so-called fringe benefits.
At the same time, the metalworking weekly warned thjit if

wage

steel

strike

is

to

be

averted, David J. McDonald, steel lajior

chief, will have to demonstrate his "flexibility" by a genLine
non-inflationary offer to the steel companies.
f
This time, said "Iron Age," it is Mr. McDonald's move—a
direct contrast to other years when the industry was overjthe
barrel. Steel management has no intention of being maneuvered
into that position. It is ready to take a beating before it will agree
to an inflationary wage increase—that is, an increase that would
force a rise in steel prices.
In line with its belief that the outlook has improved, however

"Iron

Marketing Department

1959

Week Ended June 6—
New York

slightly, the magazine asserted that a month ago the odds for
a long strike were about 8 to 2;
today, they are 6 to 4 in favor
of a short shutdown—a sort of "token" strike to prove that the
steel workers are behind their leadership.
|
} „

Admit Two Partners
John

70 PINE STREET

McDon¬

J.

Estabrook & Co. to

Call...

Merrill

investments.

in

Edmund

nell,
President, and
Nevin R.
Adams, Vice-President. Both were
formerly officers of Intercity Se¬

block?

United States for which it is possible to obtain

of the

weekly clearings will be 5.2%

a

TORONTO, Canada — McDon¬
nell, Adams & Co. Limited has
been formed with offices at 330

large

this week will show a decrease compared
Preliminary figures complied by the "Chronicle"

clearings

a year

based upon telegraphic advices from the chief cities of the country,
indicate that for the week ended Saturday, June 6, clearings

been to date.

sell

r.

£
coming publication of the
Wharton School Study assuredly

McDonnell, Adams Co.

to

\

Nationwide Bank Clearings Down 5.2% From 1958 Wqek

!

The

cut in income from his

Like

11%; and total construction at $11,702,374,000,

at $2,641,556,000, up

other di¬

in

,

for heavy

contracts

contracts for electric light and power systems.

rections, is akin to claiming the
right to steal a man's wife because
you haven't robbed his house.

.

a

v

-

"V/

engineering construction totalled
$760,432,000, a gain of 11% over the same month last year. Within
this category contracts for ijpblic works were up 16%, with most
of the increase accounted for by a rise in highway contracts.
Utilities were down 3% from a year ago despite a sharp gain in

existence, should protect the in¬
vestor,
as
in
the
last-named
group.
Instead, the Commission
follows the policy of affirmatively prompted by unexpectedly large
favoring the Call privilege, thus or early accumulation of earnings.
protecting the corporate borrower But the point disregards the fact
in lieu of the investor lender; and that the lending investor too is
of flexibility which
in the case of the utilities over stripped
also be advantageous to
which it has jurisdiction insists on would
The corporation, like the
its inclusion under its alleged ob¬ him.
ligations to protect the power bondholder, can find other in¬
vesting outlets for
its surplus
consumer. Apart from the ques¬
tion of which of the two com¬ funds should it be unexpectedlymunity groups, consumer or in¬
vestor, is entitled to the SEC's

amounted to

24%

up

year ago.

April

over-emphasize the factor of
money-cost changes, and overlook
the corporate need for flexibility
in its borrowing — as
perhaps

.

study of the Call privilege being

were

from a year ago. In addition to the in¬
creases in contracts for manufacturing
buildings and schools, all
other major non-residential building types also scored impressive
gains over the like 1958 month.
:
.;
" *
Residential building contracts in April were valued at $1,830,787,000, an increase of 48% over April 1958. Here again, all major
building types rose substantially, sparked by large gains in
apartments and single family homes. The number of dwelling
units represented by the April contracts totalled 141,370, up 44%

$1,187,200,000,

afforded by the
premium scale is superseded by
protection

fact

and school contracts were up 15%.
construction contracts in April, at $3,778,419,000,

31% above the April 1958 level.

minimum premium for the ben¬
efit of the investor. Furthermore,

the

which had been lagging earlier in 1959. Manu¬

facturing building contracts in April were up 46% from April of

pre¬

no

any

said,
In March it climbed sharply

.

public at 101.15,
carry an initial redemption price
during 1959 of 106.15. We would
that

low point in February.

a

277, and it has now gone above the record high it reached last
summer."
■
v:.-,■.
y.<■;
Virtually every type of construction gained in April. Dr. Smith
said.
Particularly encouraging, he noted, were big increases in
contracts for schools and factories, two large categories of non¬

and offered to the

here

fell to

to

bonds bearing a oVs% coupon,

observe

time, reached 299 in April. According to George Cline

as its base of 100, was 297 in June 1958.
"While the index remained high last summer," Dr. Smith

"it

Consolidated Edi¬

the

Thus

rate.

all-time

period

public offering plus the interest
son

a new

Smith, Dodge Vice-President and economist, this was the all-time
high for the index, which has been computed for each month from
January 1947 to date, z
J.v. ';:;c.7 f j';; 4 * 1
The previous high point of the index, which uses the 1947-49

rower's

unilateral

before

for the first

the call is exercised.
The SEC
been free of the bor¬
option to boot them out points to the fact that in the case
with the return of cheaper money, of utilities it has adopted a ruleof-thumb
formula under which
they would have been willing to
the initial redemption price may
come in on a coupon lower than
the 5^8% tag affixed. The pension not exceed the sum of the initial

issue

is afforded the

high for any April, and

The

of this

whereunder

a new

according to F. W. Dodge Corporation. . " w :
new Dodge Index of Construction Contracts, just released

ences,

Those favoring the Call feature
cite the fact that its penalty on
high-yielding issue because
the lending investor carries the
of the Call feature. Some of the
abstainers have told us that if the offset of sizable premiums when

walking-away

namely
the
arrangement

$3,778,419,000, setting

high for any month when allowance is made for seasonal inllu-

considerable
from the offering

closes that there was

on

a

panies
But

Age" said that any attempt by Mr. McDonald to work

day-to-day basis without a contract or to strike some com¬
a

and let others operate would seem to be a bad gamble.
short strike followed by a non-inflationary settlement can

hardly be ruled out.
Meanwhile, said "Iron Age," the belief is growing that while
steel users won't have as much steel in stock by June 30—labor
contract deadline—as had been expected,

most of them will be in

good shape.
The magazine added that there is

a lot of frantic maneuvering
steel users who are afraid to be caught short i
there is a strike, and many of them have good reason to be worried.
Still, there's little doubt that more steel is being shipped by
the mills than is being used—despite the pickup in the economy.

going

on

among

Continued

on

page

35

Volume

189

Number 5854

.

The Commercial and Financial Chronicle

....

statement- that

"
.

;

,of the;

>

.

'

Chairman

Martin

Congress

on

ment he

V;
By CRAIG S. BARTLETT*
V
;
i"; Senior Vice-President, The Hanover Bank, New York City
commercial banking investments is given by
a
top New York banker as part of his views on Treasury
plan* and. prohlems, Federal Reserve policy, and loan and

-

;

Federal Reserve shares that
cern;

Tfeasury can "sit around" with present
ceiling rate of 4%%; expects Treasury for rest of 1959
to borrow $8-10 billion in cash and roll-over
$8.9 billion and,
thus, sees no early or sustained recovery in bond prices; and
conclude* that the fiscal and monetary authorities are in a

..

;
'

dilemma

.

in

.

7

•

because

.

-

/

extend themselves in their

scoffs idea
Last

we

spring

moves

up

more

:

~

-

•.
•

"7

is

"surplus funds investments." He
inflation as a way of life.

creased.

activity and employment.

will

Thus

continue

it -has
to

be

tal

been

and
costly

more

to borrow both in the capital
hets and from the banks.

In turn,

icy of excessive active
pursued in 1954.

ease

quickly last August and September they aimed to control the

Period °£JelatiY,e. stability ahead
F101}6^ being

is

a

strong

us* with a sufficient amount of

made
way

Treasury financing operation an¬
nounced

to these

in March.

credit

Subscriptions

were large only
andw loan
account

offerings

because

tax

available—=the Treas¬

was

ury. was forced to use the banks

99.18

bid, the 4s of 196# at 96^2

bid and the 289 day Billsp at 3.73
bid. While the Treasury obtained
the cash it needed at the time, the
market ' reception wasvbardly
enthusiastic and it is

that

the

Treasury

dilemma.

It

will

quite obvious
is in quite a

continue to

Federal

Complicating; Advancing Yields
The
raised

recent
an

advance

in

yields

additional complication

for the Treasury's debt managers.
Four hundred and seventy-three

dollars of

Debt

be

so!

the 2-by-4s

of August

1961 will be turned in for cash

on

Aug. 1 next. (Holders had to de¬
clare their intentions by May 1.)

urowing *eaerai Debt

prospect

that demands will continue to

provided for both

business and the Treasury.
Growing

to

as \ underwriters. : However, - the
that1 4s of 1963 currently are quoted at

In acting so

no

there

starved

would- be

for:
-

'The Federal Reserve Governors
criticized themselves for the polwas

market

On April 1 payment waa
the
important1 three

mar-

"Second, there are the problems
arising from the so-called cost-

ahead

and of
savings^institutions, -the capi¬

the-ultimate detriment of business

push inflation which is part of a
spiral process stimulated by demand
pressures.
In the period

.

enough, but, ob¬

viously^' if the; Treasury shouW
of tHe

rise in interest rates has occurred
as demands for credit have in-

inflationary forces before the effects of the easy money stimulus
mystery about this could become dangerous.
Obvisource
of
danger.- If the will ously, the problem of the Federal
exists, the way will be found. It Reserve is a difficult one. With
clearly lies in adaptation of Fed- unemployment still
high, very
eral-expenditure and tax policies strong credit restraint may be out
in order to produce a budgetary of the question, but it could besurplus in prosperous times.
that the authorities envision a

There

will embrace creeping
economists

toward

econ-

in.tensive utilization of its productive resources, it is essential that
7 deficits give way
to surpluses,
omy

*•

supply short-term credit needs of the 1960s, to leave the
fluctuations of bonds to the capital market and to not over-

i

rates were high
•;

'

to consider tax-free securities for their investments; and (4)
urges banks to place themselves in an impregnable
position to

•;

to

value

private, actions

V Federal Government. As the

few months; (3) suggests
52% income tax bracket banks

a

and

:/"Among potential inflationary
factors first, perhaps foremost, is
the budgetary position of the

,

of Federal deficits .and need To prevent
inflation.. Turning to commercial banks' investment
policies,
the banker: (1) foresees
higher short-term Treasury rates
conducive to
building-up secondary reserves; (2) cautions
against being "locked-in" as seasonal loan expansion arises

4

wish

the

.

bond

»

Public

m

currency;* By
increasing" absorb an important share
discount rates and by
reducing , real savings of the people
the amount of free reserves,the

it is more costly for the-banks to
appropriate to present circum- borrow from the Federal Reserve
stances can prevent these dangers authorities or sell government se; from materializing.
...,777 curities.,
"...
r

^investment portfolio principles and practical considerations.
Mr. Bartiett doubts

con-

To point to dangers in this
situation is not to forecast inflation.

confidence

the

a/,

:

..,

Advice regarding

;

In this state-

"Currently there is widespread
7." concern about the danger of renewal of inflationary trends. The

j

I

Feb. 6.

said, in part:

of

the dollar and

of

power

Federal^ Reserve made to restore

'the Joint Economic Committee of

'

5

(2625)

Treasury fiscal and debt manThere are $2,609 billion of the
agement policy also has a very
1958, and still the dnme^tie ernnnmip situation
must recognize the dangers both important bearing upon interest 2-by-4s outstanding and some
thers did not anticipate
dealers thought that more than
any real thore are n<?<;iireHlv riictnrhin** inof wage increases in excess of rates and commercial bank investpturn before
fl,?—7 In the intemaHonal Productivity growth and of price ment policies. The Federal debt half would be turned in for cash.
The 2-by-4s don't raise an im¬
pr.ing of
snhere ♦ To he cum
there
have
increases beyond what the traffic has been growing, and its growth
1959. The fact
mediate
cash
problem for
the
been
encourmdni? develon- wiU
bear* Business and labor cannot be attributed entirely to
f.the matter
$ ments in France buAhe situations leaders have a paramount re- military requirements, In recent Treasury but they will add to its
that
summer 'borrowing requirements.
the
I ih
East and the Far- sponsibility to the general public
years there have been deficits in- The
ow of the reTreasury
tost arefar from stable and cermake-wage and' price stead of surpluses. Deficit financ- somewhere in may ' have to raise
ession was
the neighborhood
tain it is that a Berlin crisis could
of $0.5 billion more than it would
made in April
S nroduce far-reachinff serious con-"
"Then there is the easy accept- h^hTeveis oi business activity.
have had to pick up if yields
f. 1958, when
sequences. Our military forces are ance of the idea that a little inhadn't pushed against the 4% rate.
the
Federal
serving in many areas throughout flation is not seriously harmful,
The Treasury has just completed
eserve Board
of imh ic dolft
WhUp tho
the globe, and military expendi- Tim experience in the
a rather ingenious series of opera-,
ndex
of
Ingovernment
was
$40
times must remainhigh under the k°nd
tions for handling -jointly its dif¬
ustrial Pro-,
195<h-with a deficit of
cast

many

business

a

oward the

F

The International Situation

/

recovery

Even

there

as

is

confusion

in

pand.

ex-

In these circumstances,

we

end of

^ome

,

the^Middle

decisis over/the coming year.-

circumstances

uction
2

was

taxes

6,7 Since

be

little

much ieua Hum taxes
relief from

Bartiett

Craig

147

,

corporations

!.

.

March), one point above the preecession peak. It is higher now,

or

of

for eiuiti
either

iw

;

-attitudes

the money market?

upon

linancial

to be reflected in

come

...

help

In the

to

bring

roniimtion

77ait7inn77ce

ossjbly 150-152. Quite obviously,
improvement in business con-

in

nnVoc

Wn«*i»e

ti.T-.ii

,

nonary expectations

markets. .To the extent that such
r.m,-,

decisions on wages, puces,
sumption, and investment,

individuals.

Federal Reserve Policy

„

he

vallmi

likelihood

iuuui

dvanced to a"
of

high, and there would

to

appear

he'n it hag:
evel

are

'

" "These

for

about
'

they

their

own

major "reasons

about' the

possible

of 1958 excess reserves development of inflationary prosMember bank borrow- sures. To be fully aware of a
net free reserves aver- danger, and to face up to it, is not
agcd about $500 million (on lhe
despan'or to capitulate, nor

drnndPr

oulfng6" and increased 'personal
n"Swe^'imSortStfactors fn"P°sitive
If
Ln
♦..rn'S
"
o
optimism m many
areas,^ and
ere^is no-question but that the

vUriiSS
n

ecepit recession served to devel-

efficiency, better manand; in many instances
profits.

more

p

geient

■

side>- Even as late

as the
week ended July 23, the free rescrve
position of the; Member
banks amounted to $763 million

does it mean being blind..to other
national

needs,

including

$3 billion-a $77 billion budget is

Invi5:nn„j

^

)op,e

;sus-

inrio

■

unfortunate part about
.

-

.

,v

f^willdS^ .balanced. - The
M^lrd^Tho
will be.
.

-

.

the

1959

.

budget -j8 the fact that receipts
have not kept pace with mxpenditures, and

.

the

arc

concern

con-

thTS™tfn first half
iHmupri
/Tr ^o rrnv^rnmonf exceeded
rSSint*•■•■Lmnmpn S f! ings and
if.h

ab?ut

F^deral-^budget

^

Federal and State

despite

a

deficit of $13 billion

is indicated for the current fiscal
y°ar- There has been and con?

InceSuD°onethe0income3tax
e

of"rcvenuq

and

side

expcnciuure smc.

a

subsidW

^tinue^^to'rmv^heavHy
^'Xmure

as

ficult multibillion-dollar cash and

refunding problems for May.

involved.

the

\

15, was .sold at auction
at

an

Banks

on

.

May 6

price of $3,835%.
permitted to make
credits to tax and

average
were

payment

by

quoted

at '4.01-3.99%.

7 7
_

„.

(2) A $2,000,000,000 issue of
340-day Bills, maturing-next April

loan accounts." The issue is
on

..

(1) The $2*700,000,000 of special
Bills maturing May 15 is being
paid off in cash. No refunding is

(3)

>

The

next day,

May 7,

an

:
•
As of March 30, 1958 ibe.Fed-:, issue of $1,500,000,000- of Decem¬
; "The Federal Reserve
System <ral debt amounted to$272;Tbil- ber tax anticipation bills was sold
wjth the four-week moving aver- will continue to the best of its lion—it is now ovei. $-80 billion, at; auction, with
payment
due
almost $600 million
ability to contribute, so far as it and by June 30 it may amount to May 15 and no tax-and-loan-ac131111
million.
continuing prosperitv and almost $288 billion, the current count privilege. The "cover" was
: Since ^dhe end of Julyy howeverS!
Sut » debt limit $283 billion-June 30. but $199,421,000, very small. The

^tfree

tamed.economic growth.

economic-growth^

fsec1'"^

re^"es

tion. Such decisions as it must As has been demonstrated clearly average on these bills was 3.565%
make within its particular prov- recently, there is a limit to the —-it is quoted at 3.63-3.59%.
manifestiv are not enough to amount
of intermediate and
With the results of both of these
mpioying. McGraw-Hill figures apparently was o keep. Member assure attainmyent of the Sal longer dated Treasury bonds that Bill issues
known, the Treasury
re quite tavorable although conbanks m a small net boriowed obiect;ve3 to which we all sllb. can be absorbed by the market,
unfr purchases of durable goods position, and since then, the aim <Jibe. wha, this Congress de- Doubtless the Treasury could sell announced, late on May 7, a 4%
re
below both 1956 and
1957. seems:
Continued on page 28
toohave been tcitato dde what
labor> more long bonds if the interest
h|e inventory liquidation has net borrowings around $150 mil- agrlculture and,
Private capital expenditures

are

mid

near

nhiccrive

near mid-Februai/, thc objective

.

managcmelkt>

.

•unjits

tilfj high,
pofty and
pibblem.

ioiX

to $200 million.

course, unemployment is
it

unfortunately
Currently the four week movlikely to remain ing average shows a net borrowed
There is some indica- position of $245 million, whereas
is

seems

that

the

automobile

new

a

ago

year

there

was

a

chiving
,4955

sales

a
or

even

•omjpetition is

equal to 3% were announced by the 12
Foreign Federal Reserve Banks in March.

volume
1956.

real factor. Hous- Such increase was largely in the
ng ^starts are at the rate of 1,- nature of a
delayed recognition
90,000 per annum, a pace not of changes that had already hapudi
below
the
peak housing pened in the money market. For

*ear

of

acting
Ors,

some

The
The

too
too.

in

fear
tear

ui.

ltli

t-

high

dent

•

-r

equity

list,

in

the

appear

table

r7:7L77
7

are

tt

high and
j

•

S.

to

Govern-

be

on

«on,

the

pypp«po

777!,7.?
!
both markets, but
k

Bankers

excess

the discount

rate of 2^%<. Probably

crease

in

an

k

Assn

$^

4i.

C^nven-

Greenviiie, s. c., May is, 1959.




state

perity

the

of

nation

to-

its progress and pros-

rests with the decisions of

\

today."

Money Supply Restraint
It

seems

authorities
money
Care

clear that the monetary
consider that the

supply is adequate to take

of

the

normal

seasonal

de\

for

mand

in- well

the discount rate would

credit

by

business

as

the

cash needs of the
Treasury. It increased 9% in 1958
and recently has increased again,
as

The

con-

Federal Reserve authorities,
the Congress, and the Administration, are instructed under the Ern-

These changes indicate a policy
tjje part of the Federal Reserve

ployment Act of 1946 to maintain
a high degree of business activity

eYa.^ons and unemployment
ditions.

on
of

gradually shifting toward a
somewhat greater degree of rcstraint. In moving toward some-

employment. It seems evi¬
dent that the Monetary Authorities acted quickly to reverse their

eral Reserve has
a

been

actuated

desire to contrib-

This

seems

clear

from

a

ease

in 1958, and

will not add to the money supply
to

the

degree

ute> to tbe best of its ability, to tions either
the prevention of further infla- encouraged.
tion.

Correspondents inprincipal cities

throughout the United Statesand Canada

UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES

and

what increased restraint, the Fed- policy of active
primarily by

,

fev, Mi.

Carolina

bad been in

is

Bond prices,
U.

opposite directions.

outh

infla
mila

time yields on Treasury bills

re- have been made sooner had it not
prices, been for Treasury financing op-

Perharx;

:'n

.

n

u

^bond^ yields.

arcain

of
of

strong and

rice-earnings ratios

specially

unfavorable

are some

wn, appears
lected

"The
morrow

a

1955.

Btit there

its nerik to free institutions

positive

noqels are being better received, position of $471 million. Increases
ut [there is little
likelihood of in the discount rate from 1Ak%
o

indeed, the public
decide to do, will win
or iose the battle against debasement of the currency with all of
generally

desire

a

that

boom

&

Dominick

nacirem& Toronto Stock Exchanges
A,kroY

condi-

be generated or
They have a strong
maintain the purchasing
can

Dominick
Members New
14 WALL STREET

NEW YORK

6

The Commercial and Financial Chronicle

(2626)

miles of

Progress of the FederaNAid
Highway Program
|

j

Highway Trust Fund beginning in the fiscal

I960 through fiscal

.

expected to
bills

amounted:'to

of Interstate funds.

ment

.

Of

advertised

highway

,

^secondary/continuing.program

program authorized by the
Federal-Aid Highway Acts of 1956
way

and 1958.

It is

sched¬

con-

authorized

by;

nrbw

legislation

and

Apt

Revenue

wnv

1-

mulas

prescribed

Federal-aid

in

are

.

.mgnwaj

billion, of which $2.0 billion.
Federal funds.

About 84%

x

Act.'

tbe

—

*

highway legislation involving the the 1959 fiscal ,year ABC.sfunds
of area, population, mail had been obligated as of Decf
mileage, and cost of com- 1958. i ;
:
pleting the Interstate System
«n"
«i»» t-M-j
i
State highway departments
'.
'

~>F'und

factors

under

A

passage of the

provement

Act of

T

lowing approval of programs the

1956.

For

v.

the, provisions

Apf.np^as follows- ui: T;

with the funds.

Fol¬

advances

,4

?«-

Trs?M

.Heavy

identified :as

K:

3c

:

lb.

ll

-

:

vthieife

use.;-/- $i so per iooo lbs

per

° ;

v;,

-

.

also be necessary under

H, the, limitations of Section 209(g*

r„bber

:'A

Federal-Aid Highway Act of 1958;.

v

,

°^n.,hg^1,^^^'V'it.'•would

111'

•e,lSa™,r™CCl^mi-E

repayable

~

schedulefyas^^staWished^by^^hd
Gasoline & diesei. fuels 3c per gallon

special $400 million authorization
of "D "funds and $115 million of

Bureau

—-

fiscal years; 196LiancL 1962 may
apportioned to the States,'thereby ^maintaining^ the :pfogram prt

Highway'

the

route

submit programs of projects to the
of Public Roads for im¬

after

—

authorized to be appropriated for

?

■

of^vTaWarrruineLto

.

ule, nearly 3
years

the -19.58

imnrnvprnprit

for

Construction.

.

$3.9

on

^

Federal funds total-:
ing: $2.3 i billion: were: obligated
during this period,
were

are

_

Ejected goal.

proposed

on

since

tions

dealing with increased authorization of and apportion-

Excellent progress is being made
in advancing the Federal-aid high-

still

-

Secon-impr£ving

year

1963 when estimated receipts

year

expenditures, and he comments

cover

/t>

™

/

progress

deficit in the

tl«|

expenditures-from

estimated

-

temporary

or

,

Chief of Federal highway program analyzes the construction
being made and contemplated, and revenue financing
progress and prospects. Mr. Tallamy notes there will be a

j
j

Financing the Program

v

*

Thursday, June 11, 195!

.

surface,'/ and tfy'The'Federal-Aid Highway Acts Trust Fund through June 30, 1961,1
involving 2,452 0f 1956 and 1958 provided author- with a balance of $411 million.
structures.
;
- /•••''■*
izaiions totaling $25,625 billion
These figures are based upon/
'
c
'
for the fiscal years 1957 through current estimates by the Treasury '
ABC Program
(Primary,
the National Department of Trust . Fund reve^
dary, Lrban Extensions) ;/, ;
System of Interstate and Defense nuds for-fiscal years 1959, 1960 and
The ABC program, likewise,
isHighways. :.The,c legislation also 1961s and estimates made by/the
progressing rapidly. - *
w
x"r

Federal Highway Administrator, Washington, D. C.

{

graded and drained earth

.

51 miles of bridges

By BERTRAM D. TALLAMY*

|

road

.

of

-

the

Highway Revenue

Act of

to; provide .^adequate funds
to cover the contemplated expend

1956

i

the

whole period
from July 1,
1956

to

April

1,

1959,

ln

terms

of

][c

obligations

of

rently

the
projected goal

Interstate

pared, they

and

Roads

t!u!«v

n

$7,060 bilhoti.
Actually dur-

Bertram

.

approval,
to

Concur-

the

States
ldiion.

action

with

regard

to

Funds are obli-

advertised

are

plans

sition

useare-

Revenue

Highway

the

of

209(g)
;

Availability

award

Interstate/funds Pin

of

tionment

of

the special."D"

1956> the fu)l amounts aiK the amount of $2.5 billion for tK4
thorized to be appropriated for the fiscal year 1961 and $2^ billion
interstate

be

cannot

System

ap-

for the fiscal

1962

year

author-

as

and

de^fy the regular ABC or Inter-, be sufficient

Following the award of contract

surveys

«>e State

'

acqui¬

of

status

improvement

of

the National System of Interstate
and Defense Highways as of Dec.

31, 1958, is discussed in detail in
the

aidies

to defray required

S

highway department

the apportionments for the

^M^SS^abourJuly; 1959 r^nd

authorized.

are

The

when

and

right-of-way

or

.5

concurrence,

gated when construction contracts
and

oui

payable advances authorized ..by. Act'«J

the 1938 Act.

ing that period, obligations totaled or
rejection of bids and submits
$7,318 billion, or 104% of the goal Rs finding to Public Roads for

that had been set.

Aii

with

proceed

advertising for bids.
After bids
are
0pened) the State determines
its

_

with

approval.

authorized

are

ABC funds was

submitted to Pub-

are

for

document

entitled

"Progress

Report on the Federal-Aid High¬
way Program," submitted to the
Congress on Jan. 31, 1959, in ac-

VVMOllAMVMW1

wulJV

1S

SUyciviscu

vals

.by

Public Roads field

engi-

neers.

~

cal. year- apportionments.-in. order,-bient-;. amount5;, in;' the Highway \
obligations
amounted -to ,,._x the Interstate
nhimntmns
amnnntPH•• /ta(.tbat n.. T„x—«._
.
.....
'
1,1
program could.-Trust —
Fund to meet all obligations
113% of the projected
and/be .-maintained «<)n schedule. /The. resulting from these and pfio't
Interstate obligations amounted to
1958 Act also provided increased
^pbortionments^ Such obligations
art*

H8%

Payments
work done
UU11C

—

,

.

by the State highway department
' —
•
"
-j
and inspected at periodic inter¬

of

the

goal.

,/authorizations for fiscal years 1959,;;

/.

to the contractor for

will'not be^^ fuHy

■

liquidated^^until

The special "D" and/^funds 1960,and J961..-,
'the^mlddl^o^f'fiscal^ai
t
d
b
the state from a-re beipg usedplmost ent|r^fo^No 1 additional^revenues, were
196^'
cordance with
the provisions of
state funds. To obtain reimburse- construction with associated raght provided>!to cover • the increased > -In
January 1961, the Secretary
Section 101(b)
Title 23
United
t f
th
Federal share the ot T3? 3nd ,SUr^S an,d Pl3^ expenditures resulting from these of Commerce will submit to the
States Code and Section 5 of Pubwork financed with regular/ABC
Act.
As a
gt t
submits vouchers to Puhlir work financed with regular; ABC «r^ricinnc nf tho 1«58 Act.
provisions of the 1958
As a congress two
fundamental
ye*
He Law 85-867 (originally Section
R
d
indicatinfi for each nroiect funds<
Contracts were advertised q0nsequence, under existing legisrequired by the Highway
116 of the Federal-Aid Highway
fhe amount of work done and on a total of 12'136 miles Qf.. con-/JXn there wiU be a deficit in ports of 1956 and 1958. The first
Acts
Act of 1956).
The report, which
claiming the Federal Portion thai strwctionThis total includes 7,- the Highway Trust Fund .begin- will present the latest ; detailed
been orbited
has been printed as House Docu- Viai,mmg ine leaeiaA portion that 868 miles of hiffh.tvDG bituminous
,,
f
House DocuH
high-type bituminous
^uuc

auu

ocuivn

^

ui

No.

74,

86th

proi-

.rcuerill

IirilI

ruu-

as

ment

aill
Federal-aid

on

•

Congress,

1st
the

—i

"

TT

Bureau of Public Roads with the

LP°n completion of a project it
is finally inspected and a deter-

cooperation of the State highway

£!lr}a/10n made b? Public Roads

departments.

that it

Session,

prepared

was

by

was constructed in accord-

...

„

In

the

summary,

report

indi-

cated construction work completed
or under way on 11,463 miles, or

28%
70

of

Work

the

on

-

Interstate

acquisition

of

au4uwmuii

rights OX
of

ox

System.
System,
plans or

and

surveys

way
Wdy

XlgllLS

was
WUS

under

way or completed on
additional 16,843 miles, or 41%
the System.

The

ferred

construction
to

above

an

re¬

all

im¬

projects,
or

as

other

as

toll

other
„

free

facilities,

of

fbo

and

miles of toll roads.

Before dealing in detail

with

the current status of the

it

program,
offer

highway
helpful to

general

few

a

be

statements

may

Federal
operations.

covering

aid

-

highway

Federal-Aid Operations Discussed
The

Federal-aid

gram in each

highway

Interstate

numerous

individual

all

frnm

stages

tb^

projects

United

20,000
under
new

States

there

projects
way,

and

For

are

vonr

funds had been

Anrii
,

T

1

the

number

projects, totals about

each year.




about

TnVov"

oblfeated

at
at

used
used

funds,

least
least

and

'some

„sed

r™

half
nail

of
ot

had

year

in

accord-

the

Highway ,Trust

liquidation of the Inter

state program.

Interstate

States

per

in

avaijable
Fund for

States

,mf1Pr
Tne
Under the provisions of
provisions oi

209Tbl

Highway

the

of

Section

oetuuu

Revenue-

1959
I93y-Ar>./ nf

sonie portion of 1960 ABC funds,'
22 States had utlllzed at least half

noi5cv

«
"shall

Congress

the

Qf

that

/nacftegfslaUon3in
enact

legislation

in

i>

mdet
oraei

to brin

about a balance o£ total

receipts

and

total

expenditures'

12,000

....

,

efits'from highway! Th^"hi 1961
the"congress"

with the benefit of
reports, will have

these two basic

the

taxes

might ;be

adjustments

the tax structure for

equitable
to

what

ooportunity to consider

possible

made1 in

■209(b) of the ,Highway Revenue;
rs the declared

the
tne

all but 6 States had
portion of the 1959

Sixteen States had uWized

«

obllgatcd as

j

additional

19

18

billion

-with amounts estimated to be

for

the

such

of

distribution

highway purposes,

and

provide for appropriate financ¬

ing and scheduling of apportion¬
required to complete the
Interstate
System
as
originally

ments

'

contemplated.

'

in the Highway Trust Fund. Such

Comments Re H. R. 5950 # '
balance, including requirements
2,798 pro^ets toing that time, at but 3 States had used some por- for retain'ing receipts from taxes
Basic of Apportionment of 1962
Lc?:s K-?r
i0Ii' of °n of the 1959 funds.
• >.
on aviation gasoline
in the gem Interstate Funds: Section 1 ofjthe
billion were Federal
Several States are in a position eral fund and for
financing fores> proposed bill H. R. 5950 would
^ld®' The P103ects provide for to utilize Interstate funds at a highways and public lands high- provide for using the 1958 estirqate
JJ^Pravements on 7,418 miles of faster rate than is provided under ways from the Highway Trust of cost of completing the Interstate
tne interstate System, including
present legislation.
One State is Fund ' as
proposed
I960 System as the basis for apportion¬
proposed in the
o^ i6>791 bridges.
In expediting
improvement
of ; the Budget Document, can be accoming Interstate funds authorized for
addition, right-of-way acquisition

advver+tifd for 2f

anthorized at

a

1+959 iA?C fu?ds' and a11

a

co

completed at

*Statement by Mr.
Tallamy before the
Committee
on
Public
Works,

House

0r

or

for

funds,

prior

1

;

April 1, 1959,
utilizing
1960

g

funds«ance

and

of

were

their

highway

1960

fiscal years.
As

in

progress

foi

from $1.7 to

of

the

The funds authorized
for each
fiscal year are
apportioned among
the States in accordance
with for-

Washington, D. C.

highway systems, and find¬
ings regarding the equitable dis¬
tribution of. highway user taxes
among the various classes of users
-

or

in

nearly

programmed

billion

established

^ ?f™d-.„AS„a result,
97% of the 1959 fisoal
of

Funds

beneficiaries

indirect

and

of the

011 in Federal funds-iT-ere autborized financed under the provisions of and special motor fuel, from 3
^undg g "
million in Federal Section 115 of Title 23, Unite'd cents per gallon to 4V2 cents per
Sinpp
TmIxtI i
States Codet relating to construe- gallon for the period commencing
Sine* July ! 1,
1956, a total of
c+„'
tion by States in advanrp nf apT - July 1, 1959, and ending June 30,
advance of
1>176
Interstate

imi+ioi

graming to completion.

con-

?SmtxdLt0 $4,964 billion,
105 /o of the
goal

individual

of Federal-aid

apportioned

program

$4,964

to

Apportioned

the Interstate apportionment for
the fiscal year 1962 would amount

HqgtSfa«e»tovp.l»iaae gratify- 'tionmlnt would'range

ing

tinues to advance rapidly. For the
period since July 1, 1956 to April
1959,
Interstate
obligations
unted

of

^
direct

funds for the fiscal year 1961, and

„

respon-

use

pro-

State is made
up of

h?,V'n^ 8 c,°'"bj1n«d

Dge

Federala

Program

9

^

navment

of

Qicfoc.

Interstate

2,255

earthToad°rA^ota!' oiT,- |

drained

!ungth / 44 mlles' 15 lncluded ln
^ the'work:
V

Slblllty 01 the States'

roads.

The total construction
mileage ineluded 6,384 miles financed from
Interstate funds, 2,824 miles of

final

highway projects is

ojhilitv

The

mileages

included

on the Interstate
Sys¬
tem whether financed as Federalaid Interstate

facilities,

aid

the

Maintenance

of

provements

free

"h/h the
™ited and
rv^de

,

lndPPestfma't^S'a?te; ?37

dficaHons

io«o

ding in the fiscai year i960 and estimate for the cost •:of.
complet|
Portland cement concrete pavcontinuing to the end of the fiscal ing the Interstate System.
The
ing, 2,166 miles of intermediateyear 1963, after which estimated second- report
will; present ^
type sui lacing, and 2,058 mUe^ of
Receipts and expenditures will be ;• conclusions derived from a fouror

*

:

...

x

iD«

xxi

projects
were
total cost of $1.1

billion, including
Federal funds.
vide
miles

for
of

$856 million of

The

projects

improvements
the

Interstate

oh

pro-

3,587

of hightype bituminous and portland ceconcrete

u„

pavement,

estimate

1,262

of

cost

as

shown

Funds for the National

an_

Interstate and Defense

jgg4

has

that

wherein

utilized

its

any

.

State

apportion-

ments of Interstate funds to

date

construct additional projects

may

■

The

Would

additional

increase

1960

revenue

be made available

during

the

1961

would

and

(House

which

izea for

years

amount

to

tioning

System of
Highways"

No. 300, 85th
Session), is author*

Document

Congress,

by such

fiscal

2d

use

as

the basis of appor*

the 1960 and

approximately $1,590 billion. The

and receive reimbursement there-

additional

;

for

Highway Trust Fund during these

2 of P. L. 85-899

two

the

1961

state funds.

when

funds

are

additional

apportioned. '"

Interstate
'

'

years

sums

accruing

to

the

would provide for the

in the

report entitled "A Report of Fac¬
tors
for
Use
in
Apportioning

•

portionment

System, without the aid of Federal funds

consisting of 2,274 miles

ment

iaA

.

+._

a

cuvxax

Intpr*
iV

Under the provisions of Section,

next

(72 Stat. 1725),

reestimate

of

cost

of

Volume 189

The Commercial and Financial Chronicle

5854

Number

Continued,

completing the Interstate System
^ to be submitted to the Congress

The

2,, ,1.961. The 1961 reestirnate of
will not be available, there¬
fore, for use as a basis for appor¬
tioning • the \ 1982 ^fiscal- year

cosjt

funds

apportioned

which

the

to

would

States

share

Security

on

1 Like Best

a

Th

>

volume

share by

share

about

three-

penalized about 70c
a two-month strike.

Cross ; historically,

earning

George Patten Adds

es e

further

were

per

be

sales

of $14.1 Over-the-Counter Market, is at¬
earnings
were tractive for investors willing to
penalized by moving and starting- forego current income to achieve
up expenses in the new plant, and substantial
capital gains over ♦ a

2

page

million.

within 10 days subsequent to Jan.

Interstate

from

f

(2627)

then,

has

PORTLAND,
ard

five-year period.

M.

an

Patten
Bank

Joins House-Johannes

—

is

now

Rich¬
with

Investment

Co.,

Building.

With P. de Rensis Co.

^Special to The Financial Chronicle)

years.
The
company'.-f can thus million. While the present price
July i960..1 j DAYTON, Ohio — James F.
;
1 /.
;
v:,
yC ln view of these'circumstances, compound earnings at a high rate. of 36 generously capitalizes pres¬ Boff ' is
now
associated
with
For .the
first half fiscal year ent
Section
1
of
the proposed
depressed earnings, it does not House-Johannes Inc., 1126 Oakbill
ended March-31, 1959 Cross earned
fl/R/ 5950 is recommbhded ; for 85c per share, based upon a sales appear particularly high in view wood Avenue. He was formerly
of :the company's historical earn-- with L. E.
adoption.
Jenkins & Co., Inc.
/'.%.,//
.%• volume of $4,140,462. The com¬
ing power, and does not reflect
*!'.>'Increase in 1962 Authorization
pany's fiscal 1958 earnings of $3L11 the -company's high earnings po¬
of Interstate Funds: Section 2 of
per share, realized on a sales Vol¬ tential.
With E. I. Hagen
the proposed bill H. R. 5950 would
4.
:/- ..v-ume 'of
$8V> " million, "were ad¬
increase the authorization of In¬
(Special to The Financial Chronicle)
Cross' capitalization is simple:
terstate funds for the fiscal year, versely; aetiFJ^sctecl
the; downturn
PORTLAND, Oreg.—Dayton E.
$1,300,622 in bank loans, and 633,1962 ;by $300 million, from- $2.2 in eapitaligpbdsfsp^ndmg.Ini^
600 shares of common stock. The Glover is now with E. I. Hagen &

Oreg.

Dominey

George

of about $3.10 per n
sales volume of $14

-

(Special to The Financial Chronicle)

American

power

on. a

to

w

(

,

1

(Special to The Financial Chronicle)

BOSTON, Mass.

.

—

Meyer Gold-

itch has become affiliated with P.
de

Rensis & Co., Inc., 126 State
Street, members of' the Boston
Stock Exchange.

-

>

Joins Reynolds Staff

-

billion to $2.5; biflion.
^Estimated

^

revenues

the.i;Highway

cal *1957'

.

„

Gross'^earnedr $2.41

common:

per

stock,

traded

in ; the

DURHAM, N. C.

—
Claude V.
Long has joined the staff of Rey¬
Co., 108 Corcoran Street*

nolds &

Co.? American Bank Building.

accruing to

Trust; Fund

from

present levies and from the

lVzc

Interest

per gallon motor fuel tax increase
recommended in. the.1960 budget

Exempt from present Federal and New York State Income Taxes

document

would support an In¬
terstate System authorization of
$2.2 billion for the fiscal year
1962, as provided by present legis¬
lation, with balances of $40 mil¬

New Issue

lion and $90 million respectively
at the end of the fiscal years 1963

and

1964.

An

„

increase ( of

'"1; v

Y Yy.Y

Y. :Y

a*.', "b1*- '

i-

City of New

penditures during the fiscal years
£963 and 1964, with the result that
there

would

available

be insufficient

Trust Fund to

in

the

estimated

deficits

3.60% Serial Bonds

reve¬

Highway

Dated June

expenditures

cover

during these two fiscal

'■

the

Trust

Jfund resulting from the $300 mil¬
lion increase in the
zation would

1962 authori¬
to

amount

$60

.

>

Legal Investment for Savings Banks and Life Insurance Companies in the State of New York
t and for Executors, Administrators, Guardians and others holding Trust Funds

!

l

In view of these circumstances,
,ih<? provisions of Section 2 of the
5950

15, 1960-74, incl.

Principal and semi-annual interest (December 15 and June 15) payable in New York City at the office of the City Comptroller*
Coupon-bonds in denomination of $1,000, convertible into fully registered bonds in denomination
v /?,■
•
f
\
' ^'r
of $1,000, or multiples theteof, but not interchangeable. vy

r

v

R.

Due June

Y

;

mil¬

lion at the end of the fiscal year
1963 and $210 million at the end
of the fiscal year 1964.''V /'/Y'

proposed bill H.

15, 1959

The

years.

in

$27,000,000

\ ■ YC/'Y
v

$309

million in the Interstate authori¬
sation for fiscal 1962 would result
in a corresponding increase in ex¬

nues

June 5, 1959

.

Y /y A -for Investment under the Laws of the State of New York

not

are

.recommended for adoption.

These Bonds will

constitute, in the opinion of counsel, valid and legally binding general obligations of
City of New York, all the taxable real property within which will be subject to the levy of ad valorem
taxes to
.pay <the Bonds and the interest thereon, without limitation as to rate or amount.

the

■■4.

f

.

r.

f

.

■

AMOUNTS, MATURITIES AND YIELDS OR PRICES
(Accrued interest to be added)

1960 < 2.40%

$3,400,000
Columbia

Press

University

3,400,000
1,400,000

Uni/

I h versityPress,

2960

Broadway,

-

£#New York 27, N. Y: (paper)
"Debits

and

Clearings

1970

1,400,000

1971

@100

1,400,000

1972

@

99y2

1,400,000

1973

@

991/4

1974

@ 99

3.25%

1966

3.35

? 2.85

1963

1965

1,400,000
1,400,000

1967

3.40

3.00

1,400,000

1968

3.45

3.15

1,400,000

1969

3.50

1,400,000

•

1,400,000 *1964 '

Statistics

$1,400,000

$1,400,000

2.70

i 1961
^ 1962

Fall

V1959 Catologue—Columbia

-

v

: 3,400,000

"f

3.55%

/and Their Use—George Garvy,
t-i_

r

Board

of

Governors

the

of

V Federal Reserve System, Wash-

ington,

;

C.

D.

'

(paper).;'

The above Bonds

are offered^when, as and if issued and received.by us, and subject to prior sale and approval of legality
v";->r by Messrs. Wood, King 6? Dawson, Attorneys, New York, N. Y.
,
.

European Common

Market

Its

&

^Meaning to the United States—

Yrj Committee

for Economic Devel-

'fmpment, 711 Fifth Avenue, New

''

"York

N.

22,

(paper),

Y.

$2

;

;

V

and

1958—The

Maurice

and
<

.Xaura' Falk

hrs

*

22, Pa. *

.

Foundation, FarmBuilding; Pittsburgh

Bahk

Finance'

;

[ School

on

^

v

Bank >1
r

f

The Chase Manhattan Bank

The Northern Trust
The

i

Manufacturers Trust Company

R. W. Pressprich & Co.
'f'-i'i

Business, Columbia
i'University, New York, N. Y.

.yxtity prices

t

and

of

/..'(paper) single
.

Chemical Corn Exchange
Barr Brothers & Co. /

How

Companies:

'..^jvhere they obtain their funds
YypJohn M. Chapman and Fred1 j/erick
W.- Jones — Graduate
J

"

4

;?i]tquaritity prices on request).
JF^jlk Foundation Report for 1957

-

Company /;

•

'

'

Merrill Lynch, Pierce, Fenner & Smith
.

'

Incorporated

1

Goldman, Sachs & Co.

.

'

Equitable Securities Corporation

Harris Trust and Savings Bank

Philadelphia National Bank J Hornblower & Weeks

»

Lazard Freres & Co.

Carl M. Loeb, Rhoades & Co.

Drexel & Co.

Ladenburg, Thalmann & Co.

Blair & Co.
Incorporated

'

$2;

copy,

quan-

request.

7.

•

Hallgarten & Co.

*

Hemphill, Noyes & Co.

'

The Marine Trust
The Marine Trust

Collins

,vand Jules I. Bogen—New York

Company

Schoellkopf, Hutton & Pomeroy, Inc.

Paine, Webber, Jackson & Curtis

F. S. Moseley & Co.

of Western New York

Investment Status of FHA and VA
y?i, Mortgages—G. Rowland
•

Blyth & Co., Inc.

Lehman Brothers

Swiss American Corporation

;-y,University, Washington Square,
iJfew York 3, N. Y.
Steel

Negotiations

(paper).

and

You

—

B. J. Van

Wertheim & Co.

Ingen & Co. Inc.

Bache & Co.

A. G. Becker & Co.

Baxter & Company

A

Incorporated

statement

n

by the Steel Companies Coordinating Committee
-4-Steel Companies
Coordinating

*

;

f

Committee,

-

,

Avenue,
(paper).

375 Lexington
New York 17, N. Y.

Whys and Hows of Exporting for
Manufacturers:

Guide

to

For-

'«ign Trade—State Department
Commerce, 112 State Street.
.Albany 7, N. Y. (paper).




Federation Bank and Trust Company
Ernst &

Company

:

;

-

Gregory & Sons

First National Bank in Dallas

Rauscher, Pierce & Co., Inc.

E. F. Hutton & Company

Hirsch & Co.

Trust Company of Georgia

Wm. E. Pollock & Co., Inc.

J. A. Hogie & Co.
Weeden & Co.
Incorporated

Reynolds & Co.

Laurence M. Marks & Co.
Chas. E.

Weigold & Co.

Incorporated

di

0

The Commercial and Financial Chronicle

(2628)

.

.

.

Thursday, June 11, 1959

U. S. Steel Co. and
the installation of
sification yard at

Dealer-Broker Investment

Atomic Letter No. 48

—

On four proposed new

projects, with

probable beneficiaries among companies in the atomic energy

industry, and also
dian uranium

being made by major Cana¬
Atomic Development Securities

on progress

producers

—

Co., Inc., 1033 Thirtieth Street, N. W., Washington 7, D. C.
Selected

Bache

List—Review—Baehe

New York 5, N.

Bnrnham View

&

Co., 36 Wall Street,

Y.

Monthly Investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
—

able in current Foreign Letter.
Chemical

A: Pharmaceutical price indexes—Smith, Barney &
Co., 14 Wall Street, New York 5, N. Y.

Domestic Oris—Analysis—E. F. Hutton & Company, 61

New York 6, N. Y. Also available is
Carborundum Company.
way,

Fire

&

Casualty Insurance

Broad¬
analysis of the

an

Stocks—1958 earnings comparison

—Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
Fire & Casualty

Stocks—Comparative figures—Robert H, Huff
Co., 210 West Seventh Street, Los Angeles 14, Calif.

Japanese Stock Market
In

Securities
'

issue

current

of

Study of changes in postwar years—

—

"Nomura's

Investors

Beacon"—Nomura

Co., Ltd., 61 Broadway, New York 6, N. Y.

available is

Also

review of the outlook for Plant and Equipment

a

Expenditures in Japan for 1959 and brief analyses of
Mitsubishi Heavy Industries* Nippon Flour Mills Co., Iwaki
Cement Co. and a survey of the Steel Industry.'
Japanese Stocks—Current Information — Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,
New York.4

Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau

Averages, both as to

yield

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

4, N. Y.

,.

Paper Stocks

Review

v

A. M. Kidder &

Co., Inc., 1 Wall
Street, New York 5, N. Y. Also available is a comparative
study of Life Insurance Companies for 1958, and an analysis
—

—

of Bucyrus Erie Co.

Speculative Common Sense—Review—Draper Dobie and Com¬
pany Ltd., 25 Adelaide West, Toronto, Canada.

Pennsylvania Railroad

—Analysis—Saunders, Cameron Limited,

a

pany,

2

current Amott-Baker Real Estate Bond and Stock

-

*

_

•

208 South La Salle Street, Chicago 4, 111.

-

,

-

Report

^

—

—

—

discussions of National

are

Steel Corp., Pittsburgh

Gulf Coast Drilling & Exploration, Inc. — Analysis
Graves & Co., 30 Broad Street, New York 4, N. Y.

Hunt Foods and Industries, Inc.—Analysis—Halle
52 Wall Street, New York 5, N. Y.
James Lees and Sons

Schweickart &

—

—

• ••

-

Corporation,

St.

•

on

Sold
request

Louis San

Francisco

■

'X




Company—Analysis—Laird,

of Indiana—Memorandum—Dean Witter

corporated, 20 Broad Street, New York 5, N. Y.
able is

an

in

1921.

of

&

Co.,

Also avail¬

analysis of Robinson Technical Products, Inc.

137,000 home
45,000

Almost

.

ception.
I
x.
Underwriting accounts managed
by Bank of America N.T. & S.A.
have bought more than "$652 mil¬
lion of California state and mu¬

nicipal

in

bonds

the " -past

"

.

*

12

The bank and its under¬

writing syndicates, through
policy of submitting bids on

;

Street, New York 5, N. Y.
United Cuban Oil Inc.—Analysis—S. D. Fuller & Co., 26 Broad¬
way, New York 4, N. Y.
^ World Wide Helicopters Limited—Analysis—.Blair & Co. In¬

Trinity Place, New York 6, N. Y.

inaugurated

and farm
had been
paid off in full. The program has
been self-supporting since its in¬
form

months.

14 Wall

Members New York
Security Dealers Association

Teletype NY 1-376; 377; 378

Oil

program

Through 1958, the State of Cali¬

,

I

Standard

.

_

Railway

farm

California veterans under

fornia had loaned more than $1.1

loans.

Meeds, 120 Broadway, New York 5, N. Y.
South Jersey Gas—Analysis—Reynolds & Co., 120 Broadway,
New York 5, N. Y.
Also available is a review of the Oil

Troster, Singer & Co.

.

a

billion under the program, in the

Bissell &

Stocks.

HAnover 2.2400

loans to

& Stieglitz,

Alstyne, Noel & Co., 52 Wall
Street, New York 5, N. Y.:
7;
,
.
Nationwide Mutual Fife—Circular—Robert H. Huff & Co., 210
West Seventh Street, Los Angeles 14, Calif.
\
North American Cement—Memorandum—Hemphill, Noyes &
Co., 15 Broad Street, New York 5, N. Y.
North American Coal Corp.—Memorandum—Model, Roland &
Stone, 120 Broadway, New York 5, N. Y.
Raytheon Company—Analysis—du Pont Homsey & Company,
31 Milk Street, Boston 9, Mass.
Reinsurance
Investment Corporation—Report—First Invest¬
ment Savings Corporation, Box 688. Birmingham^ Ala. 7
Ryder System, Inc.—Memorandum—Woodcock, Hess, Moyer &
Co., 123 South Broad Street, Philadelphia 9, Pa.

Purepac Corporation

74

be used to finance home and

Martin Co.—Memorandum—Van

Poly Industries Inc.

Prospectus

&

Gordon

.

Bought

just sold are part of a
million
authorization ap¬
proved by voters in the elections
of November, 1958. Proceeds will

Los Angeles County Flood Control District, Calif.—Circular—
Stern Brothers .& Co., 1009. Baltimore Avenue, Kansas City

Hermes Electronics Co.

state

Bonds

:

•

the

$300

J. A. Hogle & Co.,

5,. Mo....

1961-1985.

year.

Company—Analysis—Shearson, Hammill
Y. Also available is

Kennccott Copper Corp. — Memorandum
40 Wall Street, New York 5, N. Y.

FXR, Inc.

syndicate is man¬

compared with a net in¬
terest cost of 3.55%
on the
$50
million
of
State
of
California
Veterans bonds sold in March this

Corp.

& Co., 14 Wall Street, New York 5, N.
a discussion of Capital Goods stocks.

Averages.

For financial institutions

Electronics Capital Corp.

merged

of 3.94%

Gestetner, Ltd.—Review—Alfred L. Vanden Broeck & Co., 55
Liberty Street, New York 5, N. Y.

.

The Kratter

America N;T. & S. A.

underwriting
syndicate merged
with a Bankers Trust Co. syndi¬

ing to maturity Feb. 1,
Net interest cost to

Jacques Coe & Co., 39

Lake Erie Railroad Co. and Texas Natural Gasoline

Recent New Issues:

['

Offered to Investors
A Bank of

yield from 2.50% to a dollar price
of par on the 4% bonds, accord¬

l; /

.

Broadway, New York 4, N. Y.

cular

on

Co., 29 Broadway, New York 6, N. Y.

■

California Bonds

,

General Foods Corp.—Data—Alfred L. Vanden Broeck & Co.,
55 Liberty Street, New York 5, N. Y. Also in the same cir¬

Company—Review in June "ABC Investment
Letter"—Amott, Baker & Co., Incorporated, 150 Broadway,
New York 38, N. Y. In the same issue are data on
Ohio Oil
Company, General Cable Co., A. P. Green Fire Brick Com¬
pany and State Loan & Finance Corp. Also available is the

*.

$100 Million Issue of

War II, the Penn¬

Corporation—Report—Harris, Upham &
Co., 120 Broadway, New York 5, N. Y. Also available is the
Investors "Pocket Guide" containing lists of securities in
various categories.

Can

—

"77

The

After World

Fansteel Metallurgical

New York 6, N. Y.

Arkansas Louisiana Gas Company

costs.

1965.

of

Analysis
Broadway, New York 6, N. Y.

memorandum

bring debt down to under

Combustion Engineering, Inc.—Report—Thomson & McKinnon,

Chalmers—Review—Ralph E. Samuel & Co., 115 Broad¬

way,

its debt by $204,-

000,000

aged by Bank of America, with
sylvania was faced with large ex¬
Bankers Trust Co. acting as joint
penditures for rehabilitation and
manager.
The Bank of America
re-equipment. Some $450,000,000
syndicate includes the First Na¬
traffic, y.j'"• 7-Ywas expended for the purchase of
tional City Bank of New York,
Last year in the face of drop¬ di&sel locomotives. These expen¬
The Chase Manhattan Bank, New
ping revenues, the road was able ditures brought total debt up to
York, American Trust Co., San
to
cut
expenses
by
the
sdme $1,116,000,000 by 1952 and since
Francisco, Security-First National
amount. Gross revenues declined that time the road has been con¬
Bank and California Bank, Los
15% from the preceding year and centrating on reducing debt.
In
Angeles.
The Bankers Trust Co.
operating costs were reduced by addition, some $12,000,000 was ex¬
group
includes
First
National
15%.
Personnel was cut from pended for the construction of a
Bank of Chicago, Halsey, Stuart
89,000 at the beginning of the year heavy repair shop at Hollidays- & Co.
Inc., and Chemical Corn Ex¬
to 78,000 employes in July, the burg, Pa., and
an
ore pier at
change Bank, New York.
7
lowest in the road's modern his¬ Philadelphia for $13,500,000. Also,
The underwriting group bid a
tory.
$9,000,000 was spent for yards to
However some deferred main¬ serve the Fairless Plant of the premium of $19,159 for a combina¬
tion of 5%, 4%%, 3V2%, 3%% and
4%
bonds, or a dollar bid of
California Eastern Aviation, Inc.—Bulletin—De Witt Conklin
100.019.
The net interest cost to
/ Organization, 120
the state was 3.94%.
The bonds
Broadway, New York 5, N. Y.
were
reoffered to investors
to
Clinton Engines Corp. — Analysis — Webber-Simpson & Com¬

Pullman Incorporated and Reliance Manufacturing Co.

American

six years has Ctit

$900,000,000 for the first time
since 1947.
This is a part of the cate to purchase the $100 million
company's plan to reduce the level State of California Veterans Bonds
of debt to $725,000,000 by the end on June 10.
■
77 7; "<:
.-.v*/'

Allegheny Ludlum Steel—Data in current "Monthly Review"
—H. Mentz &■ Co., 72 Wall
Street, New York 5, N." Y. In the
same issue are data on Borg
Warner, Continental Can, and

Allis

order for about

time debt was cut by $21,- equipment will add about $16,000,000,000 and working capital was 000 annually to charges, pfficials
increased by $11,000,000 and cash of the road are of the opinion that
by $18,000,00.
In the meantime, savings in operating expenses will
than offset the increased
the road over,# period of the past more

interesting to note that many
industry observers do not expect
as
much of a decline in general
business
activity in
the
third
quarter as previously forecast. A
high rate of industrial activity
would be particularly beneficial
to the Pennsylvania since it is de¬
pendent on heavy industry for its

7;"77 V7.''-V*.

is

country.

would

Governments?
55 Yonge Street,

#

R. Grace & Co.
Also available
Hudson & Manhattan Railroad Co.

undertaken by a

ever

in this

carrier

is

Lie.—Review—Hayden, Stone & Co., 25 Broad
Street, New Ysork 4, N. Y. Also in the same circular are data

W.

spent $47,000,000 last year

and has made plans to
the road was well in the black meet
the
remaining $36,300,000
for the first five months of the "AVzs, due 1960, through issuance of
new bonds.
The carrier plans fur¬
year as compard with a substan¬
tial deficit in 1958. Heavier ship¬ ther
debt reduction
during the
ments of coke, ore and manufac¬ current year.
According to its
tured
products
have
present budget, some $25,000,000
played
a
large part in the revenue increase. additional debt will be retired
These shipments are expected to during
the
current
year.
This

ACF Industries

on

The Pennsyl¬

occurred.

same

Loadings in May continued at a
high rate and it is probable that

Congoleum Nairn, Inc.
iji

vania

like month last year.

Out., Canada.
»

programs

Another
$10,000,000 diesel
locomotives also has been placed.
on capital expenditures, only some
$12,000,000 under 1957 and at the While the purchase of the new
tenance

Earnings of Pennsylvania Rail¬
road in April reduced the loss for
the first four months to $2,264,000
as compared with a deficit of $19,627,000 in the like 1958 period.
For the month of April alone net
income
amounted
to
$4,049,000
against a loss of $4,727,000 in the

What is the True Interest Rate For Long Term
Toronto 1,

of
acquiring
23,500
additional
freight cars costing approximately
$215,000,000, as one of the largest

continue in volume during June. It

f

&

Conway, Pa.

present time, the rail¬
road is embarking on a program
the

At

7

Recommendations & Literature
it it understood that the firmt mentioned will be pleated
to tend intereeted parties the
following literature:

$35,000,000 for
modern clas¬

a

the

vir¬

tually all California state and
municipal bond offerings, provide
an

assured

of funds for

source

a

broad range- of

projects, such as
schools, hospitals, water and
sewer
systems and other public
improvements.

new

Life Insurance Stock

Holding Company
Summary

available

report

Reinsurance
Owns

on

Investment Corp.

51% of the

outstanding stock of

LOYAL AMERICAN LIFE
FIRST INVESTMENT

SAVINGS CORP.
404-No. 21st St.,

Birmingham, Ala.

~

Wurlitzer

Company—Report—Leason & Co.; Incorporated, 39
Street, Chicago 3, 111.

South La Salle

FAirfax 2-0585

-

-

7TWX BH 456

Number 5854

189

Volume

.

.

.

The Commercial and Financial Chronicle

Of Sterling

apparent that
through

the

of

consideration

A

and Miles

which $6 million consists of 4%%
debentures convertible into common at $55. Since the common
is Miles Laboratories, Inc., a com(1,207,087 shares outstanding)
pany seventy-five years in busi- now sells around 64 in the Overness
which has paid continuous the-Counter Market these debendividends since 1894. By all means tures are selling at a premium at
its best known product is Alka- 128«
Seltzer which accounted for about
Persuasive to a favorable con-

"How to Get Rich Buying Stocks.'

marketwise,

attractiveness,

of

the

drug companies.
Today

have

pa rues

for

in

an

sion

expan¬

leading
r

larger
participation

.to
.

in

.

a

Ira

U.

Cobleigh

lines

these

of

endeavor,

sales

Cash

chemicals

have

dividends

pharmaceuticals.

and

chemi-

cal division, nas pioneeiect in enzymes useful as catalysts in food

1958.

share has shown

a

nivision

pleas-

$l?4^

in

Balance

"o

1953

sheet

$2.42

ular

Pn-

sideration of Miles Laboratories
fact
common at this time is the
that per snare net has doi
tnat
nas doubled

corn.
.

_

„

,

,

,

,

Percentage of totel sales

.

ethical drugs was 10% in 1958.
Best known ethicals by Miles are
Clinitest and Clinistix, tests for
diabetes, and Nostyn a tranquilizer. New compounds, persuasive
in

Aubrey Lanston Co.
Official Changes

in the Past decade (and may rethp

<

nrirlitinn

rpppnt

SVi
hiuhlv

nf

i

Directors of Aubrey G. Lanston
i,ucv'wia Wi

& Co ' ItK'> specialists in United
.J3,
r( J"™
States Government and Federal
indicated rise in cash 'divi- Agency securities,
have elected
dends at the rate of rouehlv 20c John R Freeman Jr. and Charles

comDetent

to

members

new

the

ds

KuSSamw
Gould' Vice-Presidents. Mr.
' a • ,* ®s ca»oratories may, Freeman makes his headquarters
Plizcr hut
is dis- in the firm's New York office, 20
piaying the s^e™ind of growth
Broad street- and Mr- Gould is
nrocened bv rasearch and saTes- with the Boston office, 45 Milk

»

oi

P P

i

m^s

""J?

•

d a

as ardh

f

^

c^non^muld
An

ir

.

earn

a.,-

xucy
Street. They lumicxiy were Asformerly

ouccu

sistant Vice-Presidents,

around

n

Douglas Delanoy Jr. and George

yn xnai oasis ui -

V1

Present market price is 18 times R. Styskal, both of New York, and
earnine<.

attraf>tiVP

t

a

raf;0

Frank

E

Lorine-

anri

for equity.
80 <?eP<mdable and so dynamic Pampel, of SalleChicago office, apthe Street, were 231
South La
an

;

There

the

are

market

two ways

today.

of viewing

You

can

say

that the whole thing has gone too

pointed Assistant Vice-Presidents,
and Edward R. Lastella of the
New York office, was named As-

high and argue that you should sistant Cashier.
SUSpend purchases till more traditional price/earnings ratios may

become

evident

hITyou
as

the

an(j

can

the

On

take

"qtSfes

ZT„

such

we've just mentioned
that if they con-

ones

calculate

FvrKancrf*

other

liuuaijU, in.—ine uoara oi

Governors of the Midwest Stock
at the rate of 7% Exchange has elected J. R. Phil-

^

Jr. of J. R. Phillips Invest-

earnings oi th„ potential value of
the new products and processes

Z.B.T.

along rapidly is Fizrin, an efferconditioner and reliever,

touched

upon.

In

any

,

vescent

competitive
with
Alka-Seltzer.
Altogether proprietary drugs a<;counted, in i958, for 45% of con-"
; solidated
sales
and
.57.7%
of
.

j

v.

,«a

The

medical

of

balance

Tin's

>

sales

;

is neither

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

."

v

t

bicy these securities.
:
•
V "

to

;

.

in 1958) was in ethical
drugs accounting for $71 million
■3in lotal sales. About 70 specialties

announcement
•

;

-

(42.3%

;;

V:

-

,•

fJmake up the

ethical list; and new,
constantly on the
way, being ideated, developed and
.4 tested by more than 400 scientists
5 and technicians who make up the
:
staff- at
Sterling-Winthrop
Re¬
r,

products

N. Y.

$15,417,500

"

are

SPIEGEL, INC.

Rensselaer,

in

Institute

search

Director of Research is Mr.

5% Subordinated Debentures due 1984

Maurice L. Moore who came to
Sterling after holding a similar
3 position
with Smith, Kline and
•s French
and more recently with
; Vick Chemical Co. Research facilities
are
being
expanded, and
Sterling's new biological laboratory is to be completed by the

)}
•

(Convertible prior to June 1,1969)
'"INon-callable prior to June /, 1961.
Due

Dated June 1, 1959

June 1, 1984

,

end

■f
*■■■
^

next year.

of

A

business

Convertible, unless previously redeemed, into Common Stock prior to June 1, 1969 at $46.09

section

third

Sterling's

of

is made up of

principal amount of Debentures for each share of Common Stock, subject to adjustment.

industrial

as colors for print¬
ing inks, pigments and dyes. This
division accounted for about $25

( products such

i million of sales last
Recent

year.

acquisitions

by

■

^

for each

J

ia

York Time

on

June 22,1959,

the subscription

/

-

Delaware

fully set forth in the Prospectus. Both during and after
may

offer Debentures pursuant to the terms

and conditions set forth in the Prospectus.

poultry.

foi

Subscription Price 100%

•:

Perhaps the most exciting new
development on the horizon at
Sterling is the patented Zimmer¬
man process for sewage disposal.

j This is

as more

period, the several Underwriters

tories, Inc. and Dcrn and Mitchell
Laboratories makers of medicines

-

? * t i

cats and pet birds;
Poultry Labora¬

ments for dogs,

and vaccines

the holders of its Common Stock rights, evidenced by subscription

suInscribe for these Debentures at the rate of $ioo principal amount of Debentures
shares held of record on June 5, 1939. These rights will expire 3:30 P.M. New

warrants, to

(all in 1958) include House of
Huston, Inc., producer of such
things as cod liver oik vitamins
and
other health building
ele¬
and

—w

The Company is issuing to

;

merger,

,

"

v

.

t

'

7

"

\

*

t

.

.

* >-

*

J."» •

obtained in any State only from such of the several Underwriters,
including the undersigned, as may lawfully offer these securities in such State.

Copies of the Prospectus may be

highly efficient new

a

method of disposal of sewage

waste

by

a

}

and
complete com- ;
which creates, as

more

bustion process,

,

'

Wertheim & Co.

end products, carbon dioxide, ash,
steam and nitrogen. The Zimmer-

iman

process may have wide use
applications in major cities since

'

*

The First Boston Corporation

Goldman, Sachs & Co.

Lazard Freres & Co.

it reduces tjie

land area acquired
for the disposal plant, creates no
smell
or
atmospheric pollution,
reduces substantially the disposal
cost; and requires a smaller capital outly than existing systems.

-

■

"

'

'

'

'

Lehman Brothers

investigated
"

by

the

Chicago

Sanitary District and the company
recently bid on a plant for Wheel-




:

Carl M. Loeb, Rhoades & Co.

Merrill Lynch, Pierce,

Fenner & Smith

Incorporated

Smith, Barney & Co.

The Zimmerman method has been

'

I,

to mental serenity, are in the tinue to grow
laboratory stage and some of these n,tfln„n„uoumthm,v,ramnrnvlv0
nf t
p
pkiiiina tni«>rf
may blossom out into highly sue- a year 01 bettei then present price lips,
cessful clinical and cash regis- quotations for them are by no ment Co., Houston, to membership
event it is ter items.
;
;
means extravagant. If the next ten in the Exchange,

,

Sterling's medical preparations.

Howard

|a™ings, a most attractive ratio i ranK a. L<mng ana nowara Lu

of

lence with

,

Glostora, Molle
Shave Creams,
Baby Powder and many
others. A product being brought

in

enzyme

value

prise is most famous for its name,

nionpprpH

has

steps up the food
barley grain, used for
chicken feed, to a virtual equiva¬

is

successful

uniquely

a

processing and drugs. One partic-

for

position

exceedingly strong with net work-

brand propriety drugs

r

total

0ne-A-Day

The accent at Miles has recently
^•>vwu,o,1«uwU<wilvW.wj

,

enter- ing capital, at the 1958 year end,
of $54.1 millions,
and houseIn view of the consistent ability
hold
products
such
as
Bayer shown by Sterling to improve
Aspirin, Campho-Phenique, earning power and develop new
■Fletcher's Castoria, Philip's Milk and profitable products, the presof Magnesia, Astring-O-Sol,
Dr. ent price of 52 for the common
Lyon's Tooth Powder, Energine doss not seem to discount, inoriCleaning
and
Lighter
Fluids, dinately, the visible upcurve in
This

1953
1958

Takamine Laboratories,

from

Sterling

is

miliion

ing and consistent annual advance

one we'll
Drug, Inc.

first

The

about

of $62.6
$62.6
vitamins
were
next
in sales
importance
accounting for 19% of volume.
f
of

60%

$4

Net per

and
to
more
-diversified
talk

a

of

.

i'

'

*r

been paia continuouslv since 1902
oeen naid
continuously sincp iyiw.

■L drug industry,

operations.

of

dividend.

ethical

the

*

building

,

are

engaged

now

in

55

a row,

both

and

.

is

for

$215.8 million in 1958, been on moving away from such
including foreign sales of about major dependence on proprietary
$57 million (excluding about $3.5 drugs.
Research budgets have
million of sales in Argentina and been increased from $1.8 million
Chile).
:
in 1957 to about $2.3 million for
The capitalization of
Sterling this year. There's a $3.6 enlargeDrug "is quite simple, consisting ment to Citric Acid capacity to
of $23,968,522 in long-term debt more than twice what Miles needs
res
and 7,913,794 shares of common, for itself,
of
^itself, which citi ic permits by
will permit*,
I960, substantial
listed on N.Y.S.E., and now sellI960, substantial citiic acid sales
acid sales
ing at 52 with an indicated $1.50 to other companies using it in
sales

for

than

years

:

All

paid

dividends

.

put together, created consolidated

nt i nuous

more

Tr.

company

for treatment of industrial wastes.

scene

both

>

have

.

been

paper

genera¬

tions,
c o

the

on

,

ing, West Virginia. A Norwegian

than

more

three

.

,

,

brackets
two
whose products;are expiece

s

:companies

-

.

,

,
-

then viewing Sterling and Miles
commons
with some optimism,
makes sense. And if this imminent
decade proves less
exuberant,
then at least we'll have Bayer
Aspirin and Alka-Seltzer to fall
back on!

other company we had in
brisk discussion today

The

mind

9

Capitalization is made up of years are to be what Kiplinger
$7.9 million in long-term debt of has called "The Soaring Sixties,"

history.

stocks of two renowned long established proprietary

common

Sterling is almost
its best year in

half

By DR. IRA U. COBLEIGII
Enterprise Economist and Author of

(2629)

June 8,1959

White, Weld & Co.

10

The Commercial arid Financial Chronicle

(2630)

hourly net gain. In-

that this is not the appropriate equipment suitable for transfer
place
for
gratuitous
remarks from5 one .medium to the other, i
about any other form of competiContaincrization Coordination \
larger than the Detroit metro- ,tive transportation and I am not
politan area. Where are they going making one nor do I intend to do
Development of. standardized
to
live?
Most
of
them
in the so. But I must comment here containers is progressing and this
suburbs and beyond.
about railroad attitudes.
complex problem will be»solved
in due course.
The movement of industry outThere are many in
ward from
the central cities is An Encouraging Railroad Attitude transportation who believe that
the

average

cidentally since Jan. 24, 1958, we
have had the equivalent of a city

Growing Investor Interest
In Motor Carrier Offerings

„

By NEIL 3. CURRY*

.

Chairman, Executive Committee

-

Trucking Associations, Inc.

American

the

to offer two quo¬

I should like

tations.

American

by

the motor

port

Much

,

I said:

\

sion

of

©resent

fu¬

ture of the

.trucking

in¬
dustry
could
'take place,
first

recognizing

Neil

J.

Cunj

that few
peo¬

There is

conception of the size
and nature of truck transport."
Early last month, the letter of a

ple have

any

a

back

container

the

will

conventional

in time

largely
piggy¬

that cdntainer-

and

ization will be the chief method pf

inter-carrier coordination.

V"

'

'

Within

own

our

.not merely
petRor—but

away

plant

for many years.

: improved

industry there

The objectives bf

\ service,

teohnique.-'!-j;.v^

For many years, the policy of
There is
two; the railroads toward the trucking est within

ferment in transpor¬

brewing
the end
product will be when the inter¬

tation today. It has been
for some years.
What

the

industry

toward

•

"r

was

reflecting

one

ati-

periment

Living Habits

The second is the

' rioyance. As the letter I quoted at

,

change in

York

-the

use

outset

put it,

considered

.

our-

the

be

to

a

truck

thorn

was

in

the

than casual inter¬

more

industry in the

our

conducted

the

on

ex¬

New

Througbway involving the

of

what we

toms.

Under

call
the

double bot¬

experimental

side of the railroads. The remedy, tandem Arrangement •

qne

heavily,

are the days: in the thinking of substantial rait powered tractor hauls two trailers/
gimmicks, gadgets, appliancesleadership, was to promote re- in a combination. up to 98 feetand packaged products ofeveryfstrictions of all .kinds, including
long and with a grosss weight of
kind. The old days of bulk have curtailment of sizes and weights
up to 130,000 pounds.
Relatively
yielded
to
the
new " day
of and imposition of heavy taxes,
unfamiliar in the East, the double
processed
product
in the food * This philosophy" of the railroads bottom is a familiar sight in west¬
business.
For
example, it is no was perhaps best expressed by the ern United States.

living habits. These
of

"Revolution In Trans¬

portation". This series deals with
the problems and the outlook of
the
various transport
facilities;
steamships, inland waterways,
railroads, motor freight and air
cargo.
It is an unusually compe¬
tent reportorial and interpretive
job, whether or not one is in complete agreement.

the

or

without

title

same

discus¬

"No

pointing

trends

Changed

past several months, a
great New York business paper
has been running a series with the

1958,

January

of

truck transport.

.

.

first

the

is

major

the

For

replace

'

That

v

remarks of

movement

a

novelty.

'

Early, in those

the

of

use

reduction in
damage, easier handling and over¬
all savings7 in costs are
as a vigorous com- •
being real¬
also as a partner in ized r through ,> utilization; - of this

■:with;:!nQ^ail;.kidihgv is;h6;lGhitei';&

-

.

it is

of

from railroads. The modern

Associa¬

Trucking

.that no railroad executive in the
nation has; any forward plans
which do not involve the truck-

availability of personal trans-,
and property transport accomplished
by motor
vehicles,
on

economy,

apologize for the first
tions. The title of the talk, widely
one, since it is a direct quote of a
comment which I made to the So- used, was "Revolution In Trans¬
portation." It dealt with the im¬
ciety of Secu;
'
;
ritv
pact of ! the internal combustion
Analysts
members
m y
engine on the movement of people
and property.
-last time out.
!
:
I

_

has been a notable expansion of
be augmented by shifts of existing
trailer interchange. More than 300
production units now in metro-. years ahead is found, not merely carriers are now
interchanging
politan areas.
',
:v in words, but in their current ac- equipment Vin * much
the
same
All of this movement is based. ttvities. I venture the comment fashion as the railroads have done

basic approach sent out

a

inevitably will continue and

trend

developed showing ton¬
nage carried weekly. The author sees each form of transporta¬
tion tending toward the job it can best do; and decries common
ownership of multiple transport facilities.
around

proximity

important highways, especially
new
interstate system. That

to

Mr. Curry explains, is the new index

rj:/;

'

spotted in terms of semi-rural or
small4 town sites in close

.

My unqualified remarks that
these great trends in our economy
and culture point squarely to
truck transportation are, in effect,.
now endorsed by our principal
competitors in surface transportation, the railroads. Their endorsement of the role of trucks in the

stepping up. Virtually all important
new
plant
locations" are

of motor trucking firms offering
stocks publicly and reasons for increasing investor interest
and recognition are reviewed by Mr. Curry. The industry's
spokesman credits trucking's growing future to population
growth and dispersion, movement of industry, and changes in
our
living habits. He praises evidence of changed railroad
attitude and notes that improved public attitude comes with
Continuation in recent pace

better highways and awareness of dependence on
carrier. Indicative of the industry's place in the

Thursday, June 11, 1959

.

that the horse-drawn

coincidence

vehicle

President

of

major

a

Current power plants with 335-

railroad

could

never

; have de- speaking before a group of rail- horsepower
liyered frozen food, nor that the roa(i men jn Chicago a few weeks expeditious

railroads

this:

offer

not

could

du7to*was fotnd7deV°AecteI
J
,

truck

After W** that the historic

attitude

service

utilizing deep refrigeration units of a type unavailable from any other form of
transport. That kind of equipment

ago.

the

of

trucks*

railroads

had

\

been

y&S' ^L^f.

versus

troubling

.*

explain

;J.

adequate for the
hauling
of
th e s e
double-bottoms, but manufactur¬
ers report that the next few
years
will
find
engines
with •«" nearly
twice
The

that

'

are

r

horsepower available.

eastern

experiments in New

York, Ohio and Indiana
ducted

were con¬

toll roads.

on

T refer to the long-time camThe test runs were highly satis¬
Today other forms of transport paign by railroads to force higher factory. Since' each of the two
well-known member of the New
actions and re-actions have finally have adapted their service to ac- - taxes on truckers while we sup- units meets the size and weight
York Stock Exchange, had as its
complish at least the line haul of Ported legislative efforts to keep requirements of the states abut¬
been neutralized, no one can say
opening paragraph, these words, with absolute certainty. But no such items in special equipment, down thd length of trailers, the
ting the toll roads, the tandem uriit
which I quote:
*
but the final delivery to consumer height and the load limits.
We can easily be separated into two
high-level quality of prophecy is
outlets will always be by truck always protested that we did these individual units
"Most investors have a blind
when it leaves the
required to establish, even now in
,

spot about the motor trucking in-

dustry.
*«imply
„

They tend to think of it
as a thorn in the side of

the railroads.

ican

transportation system has a
speed and a flexibility that are
the envy of the world."
I

mention

those

two

ob¬

servations, which reflect parallel
thinking, because they are the key
to the situation. It is true that the
motor carrier has not enjoyed

his

place in the sun for many reasons
including our comparative youth;,
our
low visibility
as
individual
tinits despite our staggering job
cumulatively, and because of the
previously small comparative size
©f our companies. Plus, of course,
.the fact that only two companies
in our field had public financing

certain in¬

the

What is

happening in transpor¬

tation is precisely what had been
foreseen by shrewd observers
when they

turned their atttention

to this field

some

years ago.

Recently a leading financial
journal was kind enough to quote
me, in a title box at the head of a
story on our industry as saying:
"We are the symbol of the revolu¬
tion in production and distribu¬
tion and the revolution

in trans-

That observation,

portation."

while accurate, is by no means an
exclusive or personal viewpoint—
and I take no credit for it. Rather

it

is

since

Eucreasing

No

in¬

the

reason,

time

is

nition is coming apace and it will
be accelerated by the continued

expansion of those companies now
offering stocks publicly, and by
a steady increase in their number.
Recognition is on the way and
to an extent unthought of just a
few short years ago.

Since

it

is

obvious

that

such

recognition and acceptance of the

rple

of the motor carrier must
constitute the basis of investor in¬

terest in

motor

I

like

should

carrier

to

the forces that

discuss

are

offerings,
some

of

at work build-

Jug this platform of understanding.
Beginning about fifteen years
ago, members of the trucking in¬
dustry appearing before civic
clubs, traffic clubs, chambers of
commerce

and

tions, built

will most of the line haul,

so

similar

their

organiza¬
presentations

*An address by Mr. Ciirry before the
Clew York Society -of .Security
Analysts,
<New York City.




End in

things in the public interest. As toll road, by
utilizing
tax payers some of our railroad

steel, coal and grains in increasing
quantity. But, without question,

a stand-by
tractor, and can then traverse the
money went into the building and state system without difficulty to
upkeep of the highways. If we the point of pick-up or final deliv¬
allowed increasingly heavy loads ery. From all three standpoints of
on trailers of greater cubic foot safety, operating satisfaction and
capacity we could be accused of economy, the tests came through
standing by and watching our most adequately.
The favorable
highways broken up by the inter- economic aspects of this kind of

the

state carriers,

Truck

service

made

its

first

competitive
dent
in
the
traffic
pattern
hauling
merchandise freight. It has gone on to
virtually < every type of freight
movement

even

such

to

items

as

motor carrier is that type of
transport made to order for the
hauling of all kinds of appliances,
,

ideal

for

ponent
tractor

swiftly

parts

moving

between

com-

,

sub-con-

and

assembly points,. and
for the whole range of American
industrial and domestic
hauling
requirements.
"
Only a few months ago I
projection of some of the
tion's requirements
in 1960

saw.

a

na-

for

"Don't

operation

misunderstand

me

with

the

highway carriers
paying for the use of public facil-.
ities," this railroad executive con¬
tinued. ;"i
think
such i charges,
should be made by the several
states pn whatever basis these
states rrfay deem fair and equitable.
■'[
"However, I think the railroads
have spent a lot. of time and
respect

to

,

These

obvious."

are

only

are

noticeable trends
Over
the

the

past

few

a

in the

15

the

of

industry.

years pr

so,

trucking industry has changed
one
which basically sought

from

at

to make do with the resources

hand, to

of the

one

more progres¬

sive American industries in terms
of

intensive

through

effort

to

engineering

Mechanization

and

cut

costs

techniques;

oi

automation

items of industry and commerce money trying to
which the truck hauls with special', difficult and less

facility. Among them

are:

6,200,000 automobiles.

Sight

V

:

make operations terminals .with; remarkable sav¬
economic for the ings, joint efforts with the sup¬
truck lines, as I have mentioned,
plying industries to develop time
and we have not been too success¬ and labor
saving devices and to
ful.
improve the cubic content of trail]
"It seems to me that if we de¬
ers
while
cutting the weight-4

"

I

are

and
rapidly
approaching when they no longer
will be valid. Interest and recog¬
that

an

Offerings

Stock

teresting for another
is

industry.

1955.

These two observations

that

food

frozen

great

making.

expression of what many
economists and analysts long ago
determined by investigation and
t>e£ore 1950 and that 11 of the 21
projection as the basic fact about
ctocks how available came on the
our changing economy.
market

and

evitable results of the changes in

it is thanks to

Yet

the motor carriers that the Amer¬

Now

all the current turmoil,

the

created

won't

repeat here, in detail,
the reasons why truck transporta¬
tion symbolizes these two revolu¬
tions. But I will say that there is
no end in sight for two dominant
trends in our economy and .culture
which focus attention oh truck

transportation. One of these trends
is

"where

we

live and where

will live and produce".

is "how
The

we

to

The other

suburbia,

and

exurbia continues apace. The end
is not in
sight nor can it be,
because

of

our

expanding

popu¬

lation. I suppose all have been as

beguiled as I have by the zooming
population figures. I
took
the
trouble to call the Census Bureau
earlier

They
"fever

this week

keep

what

chart"

of

in Washington.
amounts to a

population

and

they can tell you what the. total
population will be at any given
hour of any date for many months
ahead.

Last Jan. 24 of 1958, our
population total was 172,783,909.
this time, the population total
is
176,623,726
a
difference
of
3,839,817, And in an hour, you can
add 330 to the total, for that is

At

vote

114,000,000 tons of steel.

621,400,000 pairs of shoes.

this

amount

working with the
■

15,000,000,000 lbs. of beef.
11% billion lbs. of pork.

29,300,000,000 quarts of milk.

truckers

a

by truck than by any other form
of transport. So too are millions
of
shipments of food products,
household appliances, production
line components
all kinds of
items where the speed of truck
service coupled with its economy
and with minimum handling and
.

.

.

danger of loss and damage appeals

energy
of

to

a

new

are

in which remark¬

alignment

be

much
economi¬

of

Re¬

procurement

data

and
a

processing has proceeded t<>
point where management often

has

comprehensive system pic¬

a

ture less than 24 hours old.

i

t

and prom-

attitude on the part of at
least some rail management. It is
my opinion that this is far from
an isolated
position and it may
well signalize a new and a healthy
relationship for both types of carriers.
Many are aware of the rapidly
expanding rail-truck coordination,effected through piggy-back and
through joint rate and service pr-

Change in Public Attitude

ising

Of great significance to the fu¬
ture of the industry is the notice¬
able
change in public attitude

Two things are behind this.

Gut

is

the development of a
greatly
improved highway system, nota-bly the major through highways

with

limited

grades

and

permit

fast

both

vehicles.

That's

member

.

areas

able progress has been made.

shipper and receiver. ^ * rarigements.
the- background against Intensive research and effort is
which this .turmoil in -transport is'going into the technological side
taking place. Take the change in of joint service, not only between
where we live and how we live, rails and trucks but in the whole
and add to it some new technology field of. inter-carrier relationships,
in transport and you have the in- .Within each of the various facilgredients which are forcing
a ities and in the-engineering debrand
new
approach to ~ trans- partments of many of the supply-*
portation,.
ing companies, .concentrated efI understand as well as anyone forts are*-being made to develop
to

these

carrier
mutual

most interesting state¬

ment. It reflects

Now many of those items right
now are hauled
in greater totals

of

common

matters

on

interest, we both will
more
successful,
both
cally and politically."

6,900,000,000 lbs. of textile fibre. .That is

we

live".,

exodus

53,800,000,000 gallons of gasoline.

reduced
limits which*
of all motor

access,

speed
travel

In this connection I re-,

full-page advertisement
in "Life" magazine a few years
back, sponsored by one of the
major tire companies.
Its theme
was
expressed in the headline
which said: "Nobbdy Gets Mad
At

A

a

Truck

On

A

Good

Road.*

That is almost 100% true—and we
are

getting

more

roads every day.

more gopd
The public still

and

Volume

Number 5854 V ."V"The Commercial and Financial Chronicle

189

he

brokers,

high adrenalin count
cities, notably around
Garment Center in New. York,

•.develops

a

Often

reported.

the

«

j

1' VI

in congested
the

but

is

that

a

■t

ities at points 18or 20 miles apart,

problem which the

then

the

.

V

move

As he puf.it/refrigerated
cpm^ with every business house modities can/stand, very.-little »■
r( Utilizing
truck service under its movement from truck to boxcar
.to truck without spoilage/-Can./
>vpwn banner.,,.■7.,:/. "A On the point of recognition by, you imagine/he asked, this" type/
•Hhe financial community. we find of movement being handled by
a
similar /.interest. Here is one shunting a rail car to three d|f-»^
ferent origins and three different
;
A ,-evidence of this situation.
~
.-••••-

1

'

fV

il

eral

n

■

v

without

-vx

.

-

*

erated

■

•

nnselecfive credit controls and that the SBI Act

-

re£ris- /'" • "conglomerate

involves split

commodities

^

.

FRANCISCO, Calif.—C. R.
chairman of Blyth & Co.,
Inc.,: nationwide investment bank¬
ing house, has announced that

subject.to tight,
contains

Blyth,

a

of impos»ibili»ies'! which prevent .financial.
aid to small business.

_

of this year
launched at American Truck-

/

v

.

,

his

t;,;

;

^

is

is the fact that the T,100. Class I

form

of'

general freight,/doing
a ; gross
T*.business of around $3 billion a

istics

.

an

transporta-=

h

•

a z a r

d

most

do

to

We

each

effi*?

rapidly

.

ness.

are
about ready to impose
that fundamental posture of

form

of transport,

which

received by wire

compared with
'/other business indicators such as
/ Gross National Product, industrial

and

Silbert

H.

1 heodore

business drops

than

other.

were

In

our

;

industry,'

y
see no

we

common

.■

probably

a

pro¬

20%

exr

This ridicu¬
of

impossi¬

small business is denied

economy,

ownership of multiple * the possibility of growth which is

ioadings.

-

,r

.

.

,

trickle of small busi¬
-

day we shall stop all these
of adding one
financial structure on top of anmaneuvers

ns

an7co?or-/of

r.

totality but
only on the natipnabpercentage of
/ change/ Our full" report,/listing.
i!

not published'in*

are

the citifes' in which

,

b are located and the

The second

the "terminals
changes there,

to

the average

of

that

expressed it, our expenses
highly controllable, and cash
short depreciable lives of equipment. Our
major companies, notably those
who have become big enough and
have
good
enough records for
public
financing,
have
learned
efficient
management and
ade¬
quate control the hard way.
Of the 21 Companies utilizing
public financing, only one shows

is the con-'

awareness

J

►

fpr that.
with this devel¬

opment is the equally important
►/recognition
by , our . railroad
.v friends
of the obvious destiny of
t our
service in the years ahead.
rRail installations are fixed. The
i- country
is growing away from
them, and there will be no new
railroad mileage of any conse¬

a

"

"

as are

of the six largest cement pro¬
in the United States.
:

ducers

Mr.
at

Blyth

this

Was

time

unable to

whether

the

state

option

Inc.

and,

if

so,

will be made

Blyth & Co.,
what disposition

of the assets

the

of

Co"

Henshaw

Reukauf To Be Partner
In Trubee, Collins Co.
^C.

BUFFALO, N. Y. — Jack
Reukauf, manager of the firm's
trading department, on July 1 will
be
admitted
to
partnership :m
Trubee, Collins & Co., M. &, T.
Building, members of the New
York Stock Exchange.
r;
/
.

an

oferto sell

nor a

qualified to act

as

solicitation of

an

offer to buy
on

any

of these securities»,

behalf of only such of the

dealers in securities in the respective States.

'

,

.

;

.

June 10,195*

250,000 Shares

Duke Power

business

-

in

is

most

a

"

monetary

controls

Reserve

Board

Price

help

an

even

keep

our

presented by an executive
distinguished
New
York

keel.

Those controls undoubtedly

economy

on

Copies of the Prospectus

to keep the ups and
of these downs within narrow limits, but
gains of they weaken and sometimes cause
100%,
170%,
241%,
280.7%,< the death of small business be403.7% and 420%, with most of cause the credit contraction is so
are

necessary

who

are

house, I

noted that six
companies have shown

it

is

true

.

for the small
.

and

do

I

quarrel with the statement I

less efficient for the long haul,
f. With respect to certain bulk com2 modities
moving in carloads bec tween
two railroad sidings^ • that
axiom stands up. But it is not true

tioned at

vestors
motor

the

have

...

outset-.

»

-

as
.

blind

.

.

be obtainedfrom
as

any

of the underwriters

dealers in the respective States.

Investment

Of

have -but two
I prepare to close

have

I

.

.

..

Corporation
Harriman

Goldman, Sachs & Co.

Blyth & Co., Inc.

Act

Ripley & Co*

Incorporated

course,

the

Administration

.

.

Stone & Webster Securities

Flays Small Business

men¬

that in¬

spot

companies.

not

about

a

carriers,

conclusions

may

qualified to act

then/ ranging in gains mechanical, without consideration

from 25% to 89%.
If

#102.095 per Share

the

by
will

recent

the rest oi

share)

Plus accrued dividends from the date of issuance

remarkable.

a

per

Much has been made of the fact

Federal

a

''par value $100

vulnerable

position.

price of its stock as against
offering price. All of the
of them show gains, many of
On

Company

5.36% Cumulative Preferred Stock, Series B

it must from time to time—small

that

of

\

taken

Small

is

said

now

the

over

Business

function

to

Merrill Lynch, Pierce, Fenner & Smith

Kidder, Peabody & Co.

Incorporated

of

commodities and mis^aper. ,
meeting-the long-term financing
One is to express the hope that
of many other origins and destineeds of
u business. The new
this discussion will help .to east
Small BilsirTeSs investment Act,
/.nafions and of smaller shipments
a

one

handicapped in growing during
the upswing of the business cycle.
When the downswing comes — as

chart

Moreover,

of

1957, of Riverside Cement Co. of
California, Hercules Cement Corp.
of Pennsylvania and Peerless Ce¬
ment Corp. of Michigan,, and is

New Issue

Small business, however, is vir-

them

them i$ that the truck-is ideal for
the short-haul but inferior and

»

undersigned

tually limited to-banks and cornraercial finance companies. When
these contract their credit — as
they must under direct and mdirect Federal Reserve Board pressure — small business is unduly

rest

built from here on out. ,
certain once highlyregarded axioms - in- transportaL- tion have been destroyed. One of
p

^

loss and that of 8.3% in the cur¬

rent

quence

*

}

American
Cement ■, Corp.
re¬
sulted from the merger, on Dec. 31,

offering is made only by the Prospectus.- This is published

securjties market, to insurance

the unit

.

1
1

of

Corp.

businesses have access to the pub-

flow is high because of

With recog^
dependence, there

Hand in hand

The

will give "a^ood account tompanl'loans' Pension funds. an«
himself. Ys anSLociate of ot^
of money,

of

not develop love and affec'-tion but there certainly has come
better understanding - and appre¬
ciation.; At the moment we will
4.

stock

.larger

credit> Jhese

he^is^going

the yeai^s ahead. Xn our

mine

U may

.p;settle

This advertisement is neither

they main-

"are

ence on motor trucks.

amition

m

and

stock

common

canfei

"by
citizen of his depend¬

stantiy " increasing
J?

play

the

carrier.

the unmistakable.role

of Dependency *
reason

motor

approximately

preferred

,

.

Interest, in tain-more adequate bank balances
the motor carrier is.justified
on,.Qver the
s
In addition to
many grounds,.and most notably
same
bank

/ has been sought by many finan¬
we are glad
i*to send it out., /, •; r
Awareness

..

,

the

to

ce ciat institutions and
l

.

of

Invest¬

The needs of small business

basis. These are usually available
in normal amounts and adequate
to meet normal needs, if the Fedr
eral Reserve Board did not arbitrarily limit bank credit/ By ap-

system in the «
outside financing Under tight
dination within competition' Will money-conditions when loans are
rent business "indicators.
;
keep it.vital and progressive.
:'rationed, larger firms are usually
%i,
v
served first because they are betrWe* have, made them available
It is our.
belief^ that /the^.ciir- rter ;credit risks, because they can
£o the -wire services arid the press, rent": internal
dpyelopments
m j3e mqre
economically serviced by
generally.v As a rule these reports transportation will/be_beneficial
anci because

include

the

'

.

..

will be exercised by

button ^&^rimS^rae're,le,al

Z/hese weekly tonnage reports are
//a most valuable addition to cur-

nrivatrfy
privaxeiy

Henshaw

of

American Cement

loosen

never

-

Co.

of

-

.

assets

ment

40%

and r^il freight, car- transport facilities.> It is our ber
i;necessary to sustain it during any
Comparisons were also lief that this not
only is not necesr-; subsequent decline.
V «. r •% *
0 imade
with measures of business sary but that it carries implicitV/://;/ ,;«y/
i
'
//activity available for local areas, dangers to carriers and the
public./ ; / Fed Hurts Small Business'. / plying the pressure without
*.,.i$uch as department store sales,
/*j employment
and earnings and
Reserve Board's discrimination, the Federal Re"o bank clearings. As I say, we com- Competition in transportation has^...contraction of bank credit strikes serve Board does not hobble large
pivpn
thP Vreatpst
transnort
at sma11 business' major source business; only small business is
3,pletely satisfied ourselves that
.production

.

~

The

-

small

interest

•

Henshaw.

is

One

silly

a"

nensnaw

owned investment company of San

.When-the. Federal Reserve re'? are fairly-simple: adequate loans
ad-v'stri^ts bank credit in an expanding on a 'short-term and long-term

vantage and several disadvantages
in

high

financing.-

hlw is'
is

pany.

the

loans, the government

bilities will
more

precipi-

product that big business has.

par-

The SBIC

that

earn a profit.
conglomeration

lous

small

option to

Francisco, founded by William G.

being stranT
due to Con^

SBIC is virtually guaranteed that

ness

the carriers

other

ahead with

he will

call for utilization of these

notably to
ticipating. /

drawn

so

shaw Investment Co. an

acquire approximately 85% ot tne

is protected against losing money,
and every private investor in each

and

.

dozen

go

red-tape

against

ments

tously than large business, because
qualitiesin a single movement, -the smaller enterprise does not
We believe that this can only re- have the stability of customers, or
suit in benefit to all concerned,. sales. organization, or variety of

most sensitive
as to the ciirjrent economic pulse of the coun¬
try.
:•;

two

.

ploitation, every SBIC is protected
against
making foolish
invest¬

In times

more

is

tected

than

decline,

coordi¬
nating overlay in which we will
put together combined operations

about

waiting to

their incorporation.
These SBIC's are

law

of ?„business

a

SBIC's

businessman' borrower

•

larger busi¬

.

only

are

obtained from
principal stockholders of Hen-

and.there

gress' overzealousnessi

o u s

the

it

in-the .whole country

gled with

more/:

in

are

call

enable

upon

the

we

in

ciently and economically.

barometer available

data

We

people

■<&t-..Within that group we selected
J and tested the returns : from up1 ward of 400 terminals in 34 care¬
fully selected cities. ..We satisfied
/'[ourselves that this was a repre/.isentative core.
We had proved
conclusively at the outset, the rise
Vand fall of the .for-hire carrier

The

revolution

what the. naval/than ever.
In
shake-down per-times of busiriod.
Each form of-transport has
nes's expanbeen
tending toward .the final siony small
goal of doing that job which its^b u s i n e s s
peculiar and particular character-- /grows more

tion.

//year, completely reflected in th.eir
//operations the performance of the
./ whole Jor-hire group, whose an,'jiual revenue is plus $6 billion.;'

//bach week

gfowthT.

them, is at- the heart of this

current

"

was

every0ne

-

"company had

the

ment Companies have been issued

i

how

business¬

SAN

Silbert claims small business should not be

pickupsbr split deliyerie^ or both.

mid-February

j/volume

of

small

To

licenses to Small Business Invest-

,

hurts

credit

bank

consideration

this

to

continues

Blyth Obtains Option
Acquire Henshaw

Commercial financial company head flays Federal Reserve for

ardent

.

Board

become
the Fed¬

as

men.

/injuriously hobbling small business and charges that the almost:
/year-old Small Business Investment Act is ineffective. .Mr.

i.

xt.-

i.

SpnnyT ^evmni.; /on

A Valuable New Business ///
/ r/. Indicator, i
V;

and II intercity motor carriers

will

serious

restrict

and

much

By THEODORE H. SILBERT*

Shake-Down Period
friend of small business, monetary
Ting Associations,;, what is- known;
Recognition of these facts ab6utieontrols : as they are: currently
•f.fis a weekly truckloading report.:
the nature of "the transportation, used,
e
by the . Federal
Reserve
■'« Before we made this available we
job which the economy requires Board
will
■X {Conducted a dry run for a full
and about the special abilities of
make small,
//year. Basis of this tonnage report1 various
types of transport to perbusiness

)

Reserve

relax

this

more

President, Standard Finance Corporation, New York City
/

.

3 !We

And

and

more

■

•

In

hobbled.

3

Weakens Small Business
.1

•i course,

,,,

VAV

to

load

Chicago
and deliver parts of it to three
different produce dealers.
./

•fscarriers who make their pick-up
and delivery by truck — and, of

'?%}'<

VI

Reserve Board■;

trucking industry, as such, shares
Iwith railroads, airlines and water

j

11

(2631)

great many

"

'

•

Dean Witter & Co.

White, Weld & Co.

.

*

,

r/than carloads.
'.A.,friend -of
mine- recently
pointed out that a substantial nart.
/of .the. Irevenue of his 'company
-,

'«

was

obtained"from

light in the darker corners
.of the place which motor carriers
some

'0C^w)^ 1?u°Ur •e^°+n0in^Vo/
The °thf >s+ J?/

i

hauling. per-

•it1

will
•

and

i

*,

that the years ahead

find,-increasing interest
widespread recognition

in,




in

to.

A

t

1958

wag

^

raeef all'

<=

.

of,

and vegetables. The average haul +V.A
XI,! the true role of the
motor^ carrier
tor this traffic was around 2.000
in an expanding America. '
t miles. Much of it came from food
is

d

the. long-term
rieeds of small companies. Unfortunately, this is not turning out
to be the case. To date/only two

...

ishables—refrigerated meat, fryils

■y

si

leged

1
;

1

^

u

-%M

'

R. W.

Lee

Pressprich & Co.

Higginson Corporation
Coffin & Burr
Incorporated

-

I

-'*Text of Mr. Silbert's remarks at the
dedication of Standard Financial Building, New York City, June 3, 1959.

American Securities Corporation
,

>

Hornblower & Weeks

Paine, Webber, Jackson & Curtis
Riter & Co.

12

The Commercial and Financial Chronicle

(2632)

payable

;

'

*

\ hamietied
^happened

'

*

to pay

row

highly
the growing pattern of investment opportunities
appear

funds in Canada

data show market value of U. S.

oil and gas. In times of busirecession, the trade deficit
diminishes,
in . quite
sensitive
fashion.
The import of capital

ore,
riess

comes

to

$20 billion, Mr. Heim surveys the investment climate to see
if

than the familiar risks

more

that

political developments

two

count. He

to
keep life

companies Canadian owned and opines that any

insurance

shares still available represent one
investment

term

too inconsequential

are

does not blame Canada for wanting to

opportunities

of the more attractive longdoes, too, the Canadian

as

natural gas
The

long-range

industry.

view

States

United

Canada's Dollar Is

on

investment

Canadian

the

when

S.

U.

looks

^Sfart**thni*^mnrfpato abroad be must be satisfied with
tal iSwLtS? itv^e have more cai - the political and economic backinvested in
-

ground and be confident that the

Canada

in

than

rules

other

any

not

be

changed

after

makes his investment. He must

ne

foreign coun¬
try—$8,300,0 0 0,000, or

will

confidence in the value of

iiaye
the

currency

lor

which

he

on

this

subject

Economics

:ati

morsel than: iwfmthfie

a Professor of
McGill University-

at

companies
sent

one

still
of

the

available repre¬
more
attractive

opportu¬
Wright,, had this long-term; investment
review of the Final nities in Canada and the develop¬
ment of the Canadian natural gas
Report of The Royal Commission
on
Canada's Economic Prospects industry is still in its infancy,
David
to

McCord

in

say,

a

(the Gordon Commission)

American

Economic

Opportunities Still Prevail
States

United

Should

isn't

Professor

invest-

anything

known

Wright

specific,

had

but

whether

in

mind

other

ob-

nient jn Canada come to a halt, or
even reverse its movement, there

servers have been somewhat dis-

turbed

by

wouhj

which

may

0f

to

have

course

be

a

readjustment in Canada's
(racje ancj jn the exchange rate as
drastic

what

wen.

ex-

; changes his U. S. dollars. Once he

it

Now

Satisfactory

investor

tiso

—

...

present and concludes that

are

.

in the about where U. S. was in 1925.
Review, "the Canadian oil is going through dif¬
goods has its counterpart in capi- greatest danger I see to Canadian ficulties of marketing the large
tal movements, but consumption growth
is not United States reserves that have been developed
of imported consumer goods has investment penetration but ideo- in a short 12 years, but the in¬
no such relationship and
can be logical
or
cultural
penetration vestor can rely on the industry
a matter of concern.
A significant (hy) that European and English truism that "oil will always find
change in recent years is the in- left-wing,
Labor-Socialist
phi- a market." The Gordon Commis¬
creasing trade deficit with the losophy which has shown itself so sion report in 1957 stated that the
(J. S., which inspired, the Conser- decisively inferior in the matter oil and gas industry might require
vative government to promote a of economic growth."
capital investment of $25 billion
;
over the next 25-year
switch of 15% of this trade to the
period. De¬
United Kingdom.
Keeping Life Insurance Canadian velopment of electric power pro¬

Noting that the latest

in Canada will continue for some time.

obvious non-

sequitur particularly when new
exports are the direct result of
investment as in uranium, iron

Vice-President, Empire Trust Company, New York City

favorable that

These/are prob- what-he'll get in.Canada will "be

the interest on its debt; so -often iihpb^.- ! "

but this would be an

declares the chances

Thursday, Jure 11, 1959

.

/figure* as the airecttnrestriteittjtir tout—If hey doesn't,cthere ts danger
Canada. If you wish you may say of governmental measures with
/ therefore that Canada must borthe rigidities-that' such controls:

By ROBERT C. IIEIM*

A banker who should know

was $433,000,000 which : theSe subsidiaries.
to be almost ; the tinW& rlfenti^ Ithec

..

are

happening?

the

chances

Unless

of

other

opportunities. Water
sites in British Columbia
and Labrador will generate mil¬
lions of kw, requiring many hun¬
power

developments

dreds of millions of dollars within

be manifestations of
Canadian Government reaction to
the alleged U. S. investment domillation. The first of these was the

years. With the development
secondary in¬
dustry will have its .period of
great growth; the drug and chem¬
ical industries would appear to
have particular promise as popu¬

certain

con--legislation, passed without

one

vides

oppo-

10

of, energy sources,

amending the law under
■' /
range investment opportunities in which, Canudjfiq..inguxance com- lation grows.
our total di¬
unrestricted, an opinion on the
cana(ja>
t h e
chances
appear panics are regulated. This amendGeographically, Canada is still
rect invest¬
exchange rate is of varying de- highly favorable that the pattern ment permits life insurance coma
land of frontiers.; The Yukon
ment/abroad,;
grees of importance to different
recent years will continue for parties to "mutualize,'Vrequires 0 and £ Northwest ' Territories
look
plug $3,90r0,classes of investors. The fluctuagome
time.
Canada needs huge majority of the Board of Directors particularly
interesting
with
0 00,000
cions in the rate are of lesser lmof
amounts of capital for the devel- to
be Canadian; and gives the strong indications of the presence
portfolio in¬
portance to the direct investor in 0plneut of her resources and much Board power to refuse transfer of of oil and other minerals.
Great
a
vestments,
plant, a mine or an oil well, 0j ^is capital must come from shares to a non-resident, in its advancement has been made in
represent¬
i°r; example, than to a buyer of abroad, particularly the U. S., as sole
discretion.
It is generally coping -with climatic conditiqns
bonds for an institutional port- it
ing over twohas in the past.
•
•
conceded ;that this Amendment and the Conservative government
Robert C. Heim
thirds of our
folio.
The portfolio purchaser of
About two-thirds of U
S
in- was
the direct' result of large is committed to a program of
total foreign
v
•
a common stock is not greatly ve~tmerq jn Canada is direct in- u- s- purchases of shares in Ca- northern development. Admission
J-°*
s? are preliminary concerned with the exchange rate, vestment laraest of which bv far nadian life insurance companies, of Alaska to the Union may accel¬
1957 figures, at book value.
A but it is of major importance to
M in some cases with the object of erate this development.
/ '
fair estimate of the current mar- the manager of short-term funds
is
smelUng inm: gaining control. Curiously enough,
The United States view is wellket value of private U. S. invest, operating in the money markets.
one-third of

is

assured

that

transfers

will

ciudes

that

there

no

are

long-

sition,

be

.

,

.

.

.

mfnfn^and

uroducts

and

wood

and

DaDci*

Canada

does

not permit

a

Ca-

Th^Vnre^ree fiemef thev Te This short-term investor, more- mailuLcture,

SSnTfc ?Vst h.ave the opportunity
of hedging

m+ a ^well-organized

JSnrtSSdThS futuresthese requirements without
-market. Canada's dollar
will
the trend.. The large meets
leverse

size of these investments has ere-

question, but

ated

the

some

problems for

Canada

vestor, as there are m any investment .and of which the investor
should always be aware.

attention

from

the

U.

S.

some

discussion

of

of the Canadian dollar

Pchflgc rate should be of in"

terest.

The soundness of the

dollar has

Why has Canada attracted such
ardent

course

Canadian

demonstrated

been

by
the national finances and the Exchange
superb

management

of

what kind of invest- Fund since the war, up to now.
they, what are the risks A fixed rate of exchange—U. S.
and what are the opportunities
$0,909 — was abandoned in 1950
tor the future?
Basically, it is when it was swept away by the
Canada s proximity, the similari-; flood of
offerings of U, S. dollars
ties of political climate, economic and other currencies attracted
by
system, tax laws and corporate a bargain. The Canadian money
and financial
organization
that managers,
realizing they could

investor,
ments

are

havernade investment in Canada
a

natural if

not

obvious activity

maintain

no

rate

that

is

not

in

balance with economic

conditions,
wisely let the rate seek its own
level, which it has done ever
since, with the Bank of Canada
regard for a contract and many intervening only to smooth out
people think r\ye usq. %hev$arne daily fluctuations.. Sirfce l952 it
currency, called a 'dollar.
has been at a premium over the
With so many investment op- U. S. dollar, with short and very
portunities at home, why does the minor exceptions, ranging from
U.
S.
investor risk his money about 3/64 discount
to 6-11/64
abroad, under any foreign juris- premium, which is stability
for

U.

S.

corporations and port-

folio managers. We talk the same
financial language, have the same

diction?

He

has

never

been

enough for most purposes.

greatly impressed with the exhortations of political economists

and

who have told him that it is

poses

duty and responsibility

our

We

use

the

"Par"

for

terms

"premium"

identification pur-

but what is "par"

for the

creditor nation to invest abroad; he
believes it, of course, but what

Canadian

he

really wants to know Is—can
make any money?

terms

dollar?

What's

par

for

the Dow-Jones averages? Or for
a barrel of oil?
What, in fact will
of

these

other

measure-

from

—

chemicals

and

aimlied

sumably would still permit it it
growth'--.the Board of Directors approved,
that have Mutualization seemed
to be the
nroducts".'

diminished

by the current; eco¬
problems in Canada be¬
increasing population
attracted foreign investors, their answer to this problem, perhaps and industrialization of this great
relative position may change in in part because the Supermtendcountry, coupled with its immense
the future as secondary industries ent
Insurance believes that natural resources : a n d political
build up, but the total capital stockholders in a life insurance stability cannot help but ensure
needs continue to grow, particu- company are unnecessary,
a
bright futurt*.?*
larly in the development of those
The more recent development
natural resources which the world that disturbs some - professional
will need in increasing amounts, investors is the preliminary report
:
chows

These

an

are

interesting

the industries

nomic
cause

the

To Be Partner iff

.

The risks are the familiar busi-

the Royal Commission on En-

summarized in the Gordon Commission Report in a list of grievances that are now probably familiar to most businessmen and
professional investors.
Probably

Commission) which
recommends, among other things,
the appointment - of a National
Energy Board with power to regulate in extreme detail all movement of petroleum and natural
Sas> including pipeline rates and
the return on investments in these
facilities. It should be emphasized
that Royal Commission reports
.nt'e.-advisory only and that their
recommendations are not necessarily adopted by subsequent legislation. Nevertheless, immediate
investor reaction to this Report
was extreme, perhaps more so in
Canada than abroad. It was felt
that if the recommendations were

nothing irritates the Canadian as
much as this taken-for-granted attitude on our part, unless it is
another U. S. reference to our
3,000 miles of unguarded frontier
and our hemispheric solidarity.

adopted, pipeline investments
would cease to be attractive and
the capital needed, for the development of the oil and natural
gas industries would simply be
unavailable,

Value in Overcoming Canadian

examples point up
the question of the political risk

ness

risks in varying degrees of

similar investments at home plus
the disadvantage
if any of for-

eign jurisdiction. The
investor

has

U. S.
that this

average

concluded

political risk is minor or non-existcnt; he has taken his welcome
for granted, with the inevitable
consequence. A natural irritation
has

grown

among

Canadians,

voiced quite often, in the last few
years

by membiers of the

govern-

ment and the Canadian press and

be the value of the U. S. dollar in

we

as a

stated in the following quote

all of approximately nadian life insurance company io the annual report of a Belgian
fund
"Ou r,„ con¬
the same importance. Investment acquire the stock of another life investment
in financial institutions is., sub-;; company, but did allow a foreign- fidence in the existence of further
stantial ag is merchandising, and based company toco so, and pre- possibilities is not in the least

i

i
„

<1

Lamson Bros. & Co.

ergy (Borden

These two

•-

CHICAGO, 111. — On July 1
F. Wade, Jr. will be ad¬
mitted to partnership in Lamsdn
Bros. &
Co., 141 West Jackson
Boulevard, members of the Nov
York
and
Midwest
Stock
Ex¬
changes.
James

,

Midwest Stock Exch.

!

Elects Chairman
CHICAGO,. Ill,—The Midweit
Stock
Exchange has electeji
Sampson Rogers, Jr., McMast^r
Hutchinson & Co., chairman if
the

board

of governors,

succeed¬

ing Arthur G. Allyn. A. C.
&

Alljh

Co.

W. C. O'Neil Witts

{

Dean Witter & Co.

ments? If the Canadian currency
Grievances .
raised earlier. Are they indicaDean Witter & Co., members
were not called a "dollar," there
The average American busi- tions to the U. S. investor that the the
New York Stock Exchange,
would probably be less confusion nessman was probably quite sur- rules are to be changed, or are
announced that William. C. O'Neil
corporation — where the after- and concern. In any event, this is prised at the extent of the Ca- they a natural and justified exerhas become associated with the
dinner "remarks" were somewhat one of the risks that must be nadian feeling that his investment cise of sovereignty for the comfirm in the Savings Baxik Depart¬
franker than usual, put it
this measured by the U. S. investor, carried with it the responsibility raon good? After measuring these
ment of its New York-City,. 14 Wall
way—"all this talk of hemispheric
If we analyze the Canaan pv. of Canadian citizenship, corpo- risks, the market-place eventually
Street office.
For the 'past seven
solidarity,
mutual
defense,
de- change position we find that the rate-wise. It can be said that he concluded that they are relatively
pendence on each other and so on Canadian Balance of International now recognizes the justification minor.
The U. S. investor gen- years Mr. O'Neil was assistant
is a lot of nonsense.
We are all Payments regularly shows a def- for Canadian concern and that erally
recognizes
that Canada vice-president of The East Brook¬
lyn Savings Blank, Brooklyn, N. Y.
businessmen out to make a profit
m current account balanced some efforts are being made to re- should control its own life insur¬
in charge of security investments.
ed our politicians will and'should by capital movements. The larg- duce the points of friction. An sance companies . with the great
!*iake the best deal they can for est items in capital account are Empire
Trust Company survey amounts of capital they represent
•their own country. When we rec- direct investment in Canada and ia^t year of U. S. corporations and that the export of gas and oil
With A. G. Edwards '
ognize that, we will work out our sale
of new Canadian 'issues doing business in Canada dis- is a matter of national concern, as
Benjamin Kaswell has joined
own
problems and We'll all set abroad, chiefly bonds.
As these closed a trend of increasing Ca- is also the regulation of a monopA. G. Edwards & Sons,
along better"
*
items grow, there is a growing nadian managerial representation oly in the form of an mterpro- of the New York Stock members
Exchange,
amount of interp«?t anh rU^ir^nrte
among the Canadian subsidiaries vincial pipeline. The U. S. mas
a
registered
*An address by Mr. Heim before the
nnvnhlA trvt
10=0
+u
and an awareness.of the political.vestor is thoroughly familiar with the firm's officesrepresentative in
at 485 Lexington
National
industrial
Conference
Board,
^ yable to foreigners. In 1958, the advantages; ut~ least, of Canadian both kinds of regulation and he
New York City, May 2i, 1959.
net interest and dividend account participation in the
ownership of may well have concluded that Avenue, New York Citar.
At

a

recent dinner in

the head oif

one

Montreal,
larg-

of Canada's

est business enterprises—a Crown

^

'

~.




Volume 189

Number 5854

.

.

13:

(2633)

The Commercial and Financial Chronicle

.

in which private

capital million is tp be paid-in capital,

countries inachinery and vehicles,

are areas

chemicalsand textile$,Undg,

Cannot be expected*
t6'yd<^ thc: job.V with;, an.initial1 instalment of • 20%'
; The proposed Inter r-Ainericah; tb be paid by cach- country on or'

grpat

variety of manufactured products.
Trade

the.

By IION. ROBERT B. ANDERSON*
.

y.»

■

■

;

ally

h

■'X

Bank for Reconstruction and

relations, therefore, necessarily

our

of

expansion of our trade with the
American

k.

A t¬

ica.

initiative! and management.

'

-j

tached to this
Occasion Is Propitious

message was a

Special Report

•,

Interna¬

tary

.

Mone¬

and

nancial
lems

Fi-

-;

Prob-*

nomic

such

tion.

I

Robert B. Anderioi

ac¬

This

for authorization

trend toward economic

new

United

the financial

of

means,

States

establishment of

to

necessary

for

the

institution

new

last

August by
Under-Secretary of State Dillon.
A

major portion of

specialized committee for nego¬
tiating and drafting a charter for

his-

our

tOry, the United States has forged
chain

a

nations

of

the

Western

at

,

fnterest and for pur

fense.

Washington in January, 1959,
the

Pan-American

we. drafted

matters of mutual

on

financial institution met

new

in

Hemi-

sphere. Step by step, together,
have acted

the

cooperation with the

of

invested $8.8

billion in branches

and subsidiaries in Latin America.

Ortr investments in Latin America

represent about 35% of

our total
In re¬
,U. S. investors have
reinvested* in Latin ^America an- :

foreign direct investments.
cent

years

dually over $200 million of their
earnings. Our investments are an
added reason for assisting Latin
American economic development.
'

Economic Potential

\

y

y

which

resources,

tapped.

In

countries

are

fact,

have

never

yet

as

some

of

even

un¬

these
been

fully explored. With their expand¬
ing populations, they have in¬

creasing

sigtled

Union

and

agreement which was
April 9 by the represen-

an

on

mutual de-rtatives

of

the

American

2l

manpower

I believe, that their

support
a

announced

was

stitution.
a

a

have

Inter-

an

cooperation not only with

cooperation

effect
participation in this new in¬

Over

has

also

companies

Re-

The Organization of Amer-

t^s fact of hemisplierie coopera-1.
believe that the proposed In^
!?n'^+
2! become appaient in ter-Arrterican Development Bank,
recent years that aa
jtater-Amer;^pptoyed by the' members
can financial institution wouJd.be
q#- the O^hization oT American

cSnt

important Jink in. this chain.
Our

an

»®iShtwrsJ^;the .sOutti^have
SS
gdvoca^d
*nstttut«m .^prnoixiic -progress of the. Ameri™11 i S,?"
-!?'vi
can Republics and stand as anen.

elsewhere,

'

Inter-American

assist the countries

in

,

the * main

must,

of

cannot

called

be

unless 90%

This

is

agreement

now

.

.

undertake

to

desirable

invest¬

ments.

By concentrating on the
problems of the other American
Republics^ it can give close atten¬

guarantee- fund for the bonds,

a
or

securities

other

Bank

to

which the Bank will have for its

lending operations will come from
the private investors who buy its
securities

rather

than

from

the bills be¬

be

,

~

members are generally in propor¬

tion to their proposed new quotas

the International Monetary
Fund. Of tee total capital, ,'$400

in

on

* a pro

rata, basis and must be

paid in gold, dollars; or the cur-

ContinmcijorLpage30

t '■. >
This is not and.is uiidcr.no cireumstdnces>to he construed 43-tiri offer ttnselk or ds
off# *9 kuy.%.9* as fr.soffatatwn
v..,ofer'to buy,-any of the securities-herern'mentiotKd. Tke-oferini^s^mm^y fydte'Pmpetilus',
;
-

'■i

«■

-

'M',

j

,

t ,* i

-

Z

June 9,1959

SfitoIssue

;

of dtt

j

f>

v-v-1,800,000 Shares-

•"?

Electronics

Capital Gorporation

ac

nf

distance, not only in terms of
ditional financing which would
become available, but even ^ore
,

in terms of the greater concenof interest, activity,.and

7073

provide- the

-thoritv

-

necessary
for -narticination bv

runSd State?
u

*

matter of

a

Common Stock

authe

national nolicv

ttation

mutual understanding of the

proWems 9?

^tirf

T
Arn
Laun America.

Projects for
Bank

have

eco-

.■

an

Inter-American

been

discussed

over

^nv

veaVs

.

close^lattos

Price $10 per

with the 20 other republics in this
hemisphere.
more

than

a

We

have

had

share

for

century the friendli-

over

est relationships with these counAt Buenos Aires in tries, both politically and econom1957 at the Economic Conference
ically. The new bank will help
of the Organization of American to maintain and
strengthen these
States, the United States joined good relations and intimate assomany years.

with the Latin American countries
ih

a

resolution

ciations in world affairs,

Social Council convoke

specialized committee of governmental
representatives to study the problems of financing economic development, including consideration of
proposals for an Inter-American
financial institution.

a

Trade, and Investment Stake

Here in the

,

is

One aspect of this relationship
our

trade with Latin America,

30%

of

our

imports come from
countries, and

Latin

American

about

one-fourth .of

our

.

u

,

.

.

.

.

Banking.* and * Currency Committee, Washington, D.
June 3, 1959,




Dempsey-Tegeler & Co.

Paine, Webber, Jackson & Curtis

exports

go to those countries. Our imports
px>wn that it would be in our from these 20 countries have been
interest to join with the other
running in recent years at an annual rate of $3^ billion. Our exHouse

Hayden, Stone & Co.

which forms a large part of our
total international trade.
About

United States, the conviction has

the

Copies of the Prospectus may be obtained in any state only from such
in this issue, including'the .undersigned, as may
legally offer these Securities under the securities laws of such State.-

dealers participating

recommending that

the Inter-American Economic and

ports to Latin America have been
around $4 billjon. We Sell to these

the

public treasuries of the members.
You will note -that

,

the

which

private in¬
vestors. In this way, eventually
a
good portion of the resources
sell

may

being

thp governments for
acceptance, Or ratification in ac^ cordahce with their own constituol" dional -processes. H. R. 7072 and
ad-

of

.

source

course,

'M

Goodbody &l Co.

j;,'4

The second installment

member.

formulating and presenting^ their the total amount due front all
projects and in making most, ef¬ members on the first; installment
fective
use
of their borrowing
has been paid, and similarly the
capacity..
third:; installrpqnt/} cannot ^become
due, until 90 % of theK second; in¬ 1.
Co-operative Venture ' r ^'
stallment has been' }paid;- These
v
The Inter- American Develop¬ provisions assure that practically
ment Bank is designed to enlist all ; of the; members <must .'par¬
the full cooperation of the Latin ticipate.
Thq j 10% leeway" mayrbe
American countries in a joint en¬ hecessary
in case; qne ter rtwP
terprise with the United States. countries are definitely^ unable to
All will share a part of the cost
provide -their payments; > ; j
and in the responsibility for man¬
aging the institution successfully, r I Guarantee- Fund; fpr,|tsyBdnds
The Bank should assist the coun¬
The ;s^qi^part-^^5^-tfe-Bianfe's
tries in mobilizing their own re¬
capital is to cohsist' of $450 miUipn
sources
and in encouraging .do¬ m.
caUal^lerejapital.:^ThiS parjt" of
mestic arid foreign private capital the
capiteLi#ioteiide(t^te provide

cooperation among these. nations."

]lcsubmittedr^o
wnnii

can

of
The total resources of the Bank fore you also make provision for
the will amount to
$1 billion, of which the marketing of these securities
work and savings of the people
$850 million will be the authorized in the United States on the same
living there. But these economies capital stock for its ordinary op¬ basis as the securities of the
Bank.
It
is
not
cannot obtain the capital goods erations, and $150 million will be international
the initial resources of the "Fund anticipated that the .Bank will
they need for expanding produc¬ for Special Operations," which I find it
necessary, to -make a. call,
tion except by importing these will discuss presently.
since calls may be-made only to
:
w
meet
the
Bank's - -liabilities
on
goods from abroad and obtaining
The United States subscription
obligations which itJhas issued or
from abroad a considerable part will be
$350 million, or 41 % of
which it has made.
of the necessary financing as the the total ordinary capital of the guarantees
Bank.
The shares of the other Should a call be made* it will be
United States did in the last cen¬

capital

•»

t
a'
Latin Amenc^..and we.be-.

'

The

market.

all these countries.

publics. This agreement was wideican
States, thes Inter-American
iy hailed as a. great step forward
Defense Board, the Inter-Ameri|n united States-Latin American tury. Private capital has been and
cah Economic and Social Council,
reiations. In a letter to the Con- must continue to be the major
as
>vel| as many bilateral commts- ference president JUsenhower Source-of such financing, but there
sions and boards, laear witness to

otilJ

tal

Bank

to develop
resources and industries, and
efforts to establish a new Inter- with further investment
of capital tion to their needs. The assump¬
American Bank now are much and technical
assistance, they can tion by the Latin Americans of . a
more
timely than they would utilize this manpower more effi¬ major responsibility for manage¬
have been in the past and that
ciently to produce more for their ment, both as lenders and as bor¬
SUCh efforts are much more likely own
consumption and for world rowers, should facilitate the har¬
to be successful.
monious economic development of
markets.
In Latin
America as

appearing .before T°u today to
support the President's recom¬
mendation and urge your favor¬
able consideration of this request.
The bills before you, H. R. 7072
and H. R. .7073, provide for the
acceptance of membership by the
United States and make provision

our

-

past have
propitious

themselves.

am

contribution

the

the United States but among the
tyalidii& Latin American countries

strongly "

recommend¬

ing

in

American

Many of the countries of Latin
American Bank as they do at the
America today are fab from real¬
present
time.
In
recent
years
izing : their' economic potential.
there has been a marked growth
in Latin American interest in eco¬ Many of them have vast natural

so'ry Council'
on..

time

no

conditions appeared so
for
establishment
of

of the Na-/
tional Advi-1.

tional

At

industry

tremendous stake in Latin Amer¬

Development.

Development Bank; has- been; de¬ afte£ acceptance iol^inemb^ship,)
signed for the particula^fpurpp$e; buti drif; any,, evenfj not»later*'t^h •
of expanding the growth of Latirf Sept. SOj lOOO.. ""A second' instal¬
America under present conditions. ment of 40% will be payable when
The Bank will provide additional the Bank calls it, not before Sept.
needed finance by making loans 30, 1961, and a third instalment
to supplement other sources ,of: of .40% when the Bank calls it,
The
credit. It will also provide assist¬ hot" before Sept. 30, 1962.
three-instalment arrangement will
ance to these countries ih formu¬
lating development programs and spread the burden on. the budgets
in engineering and
organizing of the member, countries and on
particular projects. Its technical th0ir; foreign exchange resources
assistance work will help Latin over a period of two ormore years,
}
American countries in obtaining
One-half
of each installment
capital, not only from the- Inter- must be paid by v each; member
American Bank, but from other
country in gold or United States
existing institutions, and more im¬ dollars. The other half is paid in.
portantly, from the private capi¬ the
national
currency
of
the

J. A. Hogle & Co.

Piper, Jaffray &Hopwood

_

E. F. Hutton & Company

Daniel Reeves & Co. Walston & Co., Inc.

j

•

V" :

,

.

American Republics.

-

n

trade with Latin America is

tremendous importance to us.
us to continue the

is vital for

It

The President on May 11 sent a American Republics in founding
Special Message to the Congress a new bank which would concerirecommending that the United trate on the problems of this
States accept membership in the hemisphere
and
in which the
Latin American countries would
proposed In¬
ter-American t
prpyide a substantial part of the
resources and a great deal of the
Development

Bla

from the United States,

come

loom very large in the thinking of
the Latin American countries and

Bank and the Fund and contrasts them with the International

■Iff J

American •'' countries.

Latin

and about half of their exports go
to the United States.
Our trade

Inter-American Development Bank and "Fund for Special
Operations" receive Secretary of Treasury's endorsement.• He
refers'to our sizable trade with Latin America, to our indus¬
try's tremendous stake and to the over one-third of our foreign
investments in that area, and to the economic potential that
require* supplemental source of capital.
Mr. Anderson
describes the provisions and organization of the Inter-American

h').
■■

importance to

Over half of their imports annu¬

Secretary of the Treasury

/

States. is

the .United

with

also of .the greatest

■»

i

14

(2634)

The Commercial and Financial Chronicle

>

first

fnn+iniioilfrnrn

^ominuea J

J

y

securities.

mi

rAlllKlA IltlllTIT

WH

vCillttillC ;V

1

j

t

VivUAIw

■

such

referred

been

takably to the conclusion that the
rate

interest

is

not

significantly

three were successfully marketed
The sell-,..

by the selling syndicate.

studies which have been made cently affirmed by certain studies spect to the two refundable issues,
relatively recently and which;! ihade under the direction of Dean one was successfully sold and the *
gjve ^ substantial support. .* Willis J. Winn' and Professor Ar~ syndicate on the other was ter-j,
In order to put our position in leigh Hess, Jr.;~6f the Wharton minated with 20% unsold. While

l.fPnlfC

lAV
HA

IfvlvAftvU

t«-

0%

m

llAtarran

AMI

ICCllPC

Ullijr

-

Avill

have

I

to no evidence which would alter affected by the absence or inclu- ing syndicate on the fourth issue ?
our position in this respect and Ision of, a restrictiojl on: refund-/was broken up with, less than oneshould like to discuss one or two ability/ This conclusion was re- third of the issue sold. With re-

«

«*.■«■.

-

^

crn
Mill#

of

refundability

free

upon

r)rmp

by

Thursday, June 11, 1959

...

feei

.

-

~

a

?.

_.

,

„

,_

c0nciUSj0ns

basis
data

Securities Act of 1933

by

passed

the

was

in

Congress

that

new

financing records are be-

the ipg made each passing year.

onfy

from the Public

nance

Association in Chicago, in

The Utility Holding Company Act of December^ 1953/that data

realization that lax financial and dollar amount of new securities
were underminregistered with the Commission

ethical standards

ing the integrity of our capital
markets, destroying investor confidence, and leading the business
and financial enterprises of this
country to the brink,of disaster,
The decline in security values be-

tures steins

ending June 30,
1958, totaled $16.9 billion — the
largest amount in the history of
the Commission. s: The number of
registration statements filed witfc
m the fiscal year

1935. We h^ve no jurisdiction

un~

<ler this Act or under the ,1939

Act to

pass, upon

such indenture

provisions of industrial corporations or of utility companies not
subject to the. 1935 Act. Our juris-

accu-

mulated on corporate bend issues
offered between 1945 - and U1958
indicated that the presence or ab~
sence of the call. privilege appeared
to liavp
no
significant
effect on the/interest'rate.;/- >

can

study
covering a
a

of

period

_

The

of

time,

this evidence of market perform-

would appear to be in accord
previous study, and
shows no v significant ; difference
between the market acceptance of
refundable as against non-refundable issues. /
ance

with : the

**

-

i

4

diction under. the. 1935 Act. ex- /.
•
• v*
..--'5
'
<" What AWiit theiInvestor
t|he Commission and their value; tends, in terms of assets/torough-;;A<?eeptaneeArgument..v/^ one
oi the arguments^
ginning in October, 1929, made since July 1, 1958, have set new Iy
one-lifth of the privately- ^ A second argument made in we hear most often in opposition
clear the pressing need for the es- records. We expect that the value owned
electric and gas utility this debate is that certain large to the policy of the Commission
tablishment and
preservation of figure for the current fiscal year industry. A number of provisions-institutional investors do not look js that it provides a "one-way;
higher standards of business cori- will be $18 billion, and that it will of the Holding Company Act'give with /avoron the purchase of street'' in favor of consumers only
.

m

.

.

if

duct

American

the

system of
to survive.
State "blue sky" laws, while most
helpful, were found to be inadequate fully to meet the situation
cot only because/ of wide varia-

private

lions

capital

between

was

states in

reach

The

billion

$22

of

number

in fiscal 1960.
registrations is

currently running about 29% over
those filed in the comparable period last year.

,

,

'

;v

V,

.

ap-

1

Explains Holding Acts Intent

proach to this problem, but also

i

The

Ities

unable

were

the

interstate

to

their

of

scrupulous promoters. •//
The

with

cope

activities

Securities Act of

un-

v

premised on

was

consider .freely refundable bonds and that And that it disregards the rights
the Commission is, in effect, thus 0f investors. It is true that this
drying up .or. removing possible particular
provision favors : the
companies. All of such provisions sources of capital available to the utility and its consumers,./con-:
must be interpreted in the; eon- electric and gas utility industries, sistently with the expressed poltext of Section 1(b) of the Act, If our policy created any visible jcy of Congress/in; adopting the
which declares that the national substantial -difficulties
with ;re- 1935 Act. It seems to us, however,
public interest and the interest of -spect to the marketing of senior that the investor has a certain

was

to

the question of free refundability
of the senior, securities of these

investor.
under

th

ister these statutory provisions. It. sion

'

1933

Act

1933

•.

specific authority

us

has

to evaluate any pro-

no power

protect
the
consuming this contentions the Commission1' ment of Policy"contains many pro
against the imposition of recently directed Mr;-J. Aropid' - visions' mother than those which
costs, and that Pines, Chief Financial Analyst of relate to refundability and which

to

public

so-called

posed security thereunder, nor to

excessive interest

passed
by the
Its two principal obJectives were, first, to protect investors by requiring adequate and
accurate disclosure regarding securities distributed to the public
In interstate commerce or by use
of the mails, and second, to out-

prevent its sale under a properly
filed and fully frank registration
statement. Strictly speaking, the
SEC regulates only the sale of seeurities under this legislation, not
the securities themselves. The
Public Utility Holding Company
Act of 1935, however, gives the

it is necessary in order to obtain
this result for us to insist that utility bond issues be freely refundable upon the payment' of,
reasonable redemption premiums,
The Commission set forth; its
position on free refundability in
two cases in
1953; .Indiana &

law fraud in the sale of all seeu-'

Commission substantial regulatory - Michigan

rities, whether

power over

the first

the

of

Securities

several

Acts

Congress.

or

The 1933 Act

Bued.

newly

not

was

is-

followed

and activities of those electric and

1934 by the enactment of the gas utility holding company sysSecurities Exchange Act, under terns which come under its jurisWhich
the
Securities ' and
Ex- diction.
The underlying, objec-

Commission

lished and which

tive of the 1935 Act

Company (35 S. E; C.
positions set forth in
those cases.;were adopted, in; the
The

313).

Statement of Policy promulgated

to free

was

Gas

ana

Commission

the

on

Feb.

;

16,

operating electric and gas utility }95g? regarding first mortgage
stock exchanges Companies from the control of ab- bonds subject to the 1935 Act. This
extended

latory control to
and

estab-

was

(35

Electric' Company

the financial structure §. E. C. 321) and Arkansas Louis}-

In

change

,

broker-dealers.

regu-

and

holding

uneconomic

next

sentee

1935,

The

companies, and to permit them to

statement of

our

Division of Corporate Regula-

tiojy which administers the 1935
Act, to make-a study of refund-;
able and non-refundable issues to
determine whether in fact there
to be any significant difference in the marketability of the
two types of issues.
;
'
> In making this study, Mr. Pines
secured data on all issues of electrie, gas and utility bonds offered
at competitive bidding between
May 14, 1957 and Nov. 30, 1958,
specifically securing the number
of bids which were made for each
issue: and information as to the'
market success or failure of the
particular issue.
A^jtotal of 137
issues aggregating'; $2,956,000,000
were studied.
Of this total, the
refundable issues numbered 109
and represented an aggregate face
appears

Policy states in part
"the indenture
of the
with the enactment of the Public be
effectively regulated by the iSSuer
shall provide that the
Utility Holding Company Act. The States in which they were operat- bonds can be called by the [issuer}
balance of the
Securities
Acts,: big.
At the same time, the 1935 for redemption at any time upon
which are of less immediate in- Act contemplated the existence of reasonable notice and with rea- amount of $2,005,000,000. The nonlerest to this particular group, are such public utility holding com- gonable redemption
premiums/if refundable issues, each non-rethe Trust Indenture Act of 1939, panies as served a useful.economic
any."
You will note that this fundable-for a period of five
ttie Investment Company Act of function
and whose operations statement, while ..it requires,/a years,. numbered 28 and .totaled
1940 and the Investment Advisors were
limited to an integrated reasonable redemption premium, $951,000,000. While, as -1 have
Act of the same year.
system
Such holding companies does not set forth any formula pointed out, a number of factors
tnajor

legislation

in

came

that

.

.

.

...

th?ir

a very large
number of
factors are, of course, also
responsible for the tremendous

and

expansion

tol^eiu^ence^f
m^. /efulre!u4

While

other

in

our

since,

economy

ihe dismal days of the '30s, there
can be no question but that the
enactment of the Securities Act of
1933 and the other securities legis-

lation has increased investor confidence and has thereby been of

aubstantial assistance in

(corporations
amounts

to

enabling
the

secure

vast

of

capital they have reexpansion.
By
1933, approximately half of the
$50 billion of new issues sold to
quired

for

their

American investors between
and

1933

had

become

1920

worthless.

Since

1933, there have been effectively registered under the Securities Act, corporate securities
of

an

aggregate

issue

value

of

about $161 billion. Not all of these

fiecurities,
worth

the

of course, are today
issue price.
Some of

them have become worthless and
others have increased
enormously
tn value.
There have been broad
market price fluctuations over the

affecting these values, somelimes up, sometimes down, but
there has been no major wholeBale
devaluation
since
1933
to

years

compare, even remotely, with that
which took place prior to that
lime.
In fact, many

shrewd, ob-

Bervant

economists

are

of

the

opinion that the Securities Laws,
together with the substantial body
Of
now

other
on

t-j/i Tirin

regulatory

the
cor,ro

books
♦

fcoa .will serve 10

legislation

have

'

+

sprvp^
i.

prevent any such




either

give, additional- rights

to
protect existing rights

to

serve

or

0f investors.

For instance,

it

issuance of additional

the

con-,

against!

restrictions

certain

tains

bondsj

and

provides for sinking and improvement funds, and for renewal
and
replacement funds.
It profurther

vides

declaration

Gf

oh

restrictions

for

the

dividends/ Alt

of

these

requirements
provide
protection to the in^
vestor.
In short, in drafting this
statement, the SEC did not favor1
substantial

either the
sumer

investor
vice

or

over

con-

rather

interest of
poli-

the

sought to protect

the

but

versa,

each in accordance with the
cies declared in the Act.
Af

f

+1,^

timP

nnhiiriv

t

a

T

i+

fri

r.rnn_r

1 cLL
9

nlL ^ 3S witb
f®??,w JS

ISnTf

constltuent

operating for determining the amount of other tham cailability can affect the nolicies of such of vour asenGompanies were, however to be such premium. The Commission the number of bids received and ciGSPas do not comnort with our
subject to continued and detailed has> however, adopted a rulc-of- the market success of; the par- cfafp^Pn? inthis^nrd Tfthorl1
the

^abuses

foimulf. ur?deF w^h the ticula,r issue, for such statistically,
there, is factors to
a tendency

/vS abuses initial redemption price may not
which brought about the enact- exceed the sum of the initial pubme"t °? tbis law.
'
lie offering price plus the interest
1

^

princi.pal mandate under the
^ct ^as }? recluire the
.

Physical integration of public
utility companies and functionally

relateci properties of holding comP.aRy .systems and to compel the

simplification - of
relationship / and

^^pmQ68

whiip

ra^e> Thus, if bonds are offered to median number of bids on both
the public at 101 and bear a 5% the refundable and non-refundinitial

the

coupon,

redemption

prjce

may not exceed 106, and the
6-point premium must thereafter
reduced pro rata to maturity,

intercorporate
^

the financial
lll company
of

most

Refers to Most Recent Study

SQ1R^ important questions which
mu3t eventually be faced.

able issues represented was four
for each group.
The weighted
average number of bids received
on the refundables was 4.46, while
that on non-refundables was 4.11.

In evaluating the marketing

of free refundability have

advanced

a

number of arguments

jn

faVor of their position. -They
contend, for example, that an is-

suer
^es

0f freeiy refundable securiforced

to

pay

higher

in-

issue was termed successful if at
least 95% of the issue was sold at
the syndicate price. On this basis,
75.2% of the 109 refundable issues
were

28'

successful and 75.0% of the

non-refundable

issues

univerSal

.

vipwnnint

-

artine

their

resnee-

nrhit«

of

it

thG

fJrS
valif!itv

thorp

tPn+;n£;

nf

rpfjpnintinn

Tn

in

who

frppyinc

hfFnp^atpd

ni

hp

mav

na^ent
^vhatever

sppms

of

thosp

^p P,?rSpnf

Federal

the

a«ent>iG5?

,

4nriadictionq

w;thin
. .

1

this

of

acceptance
between

pth

d

th^

thp

pon-

advocate
nrovi«?inn«!

nrpcipncp

Wrt

of

1

in

c'J1r^ ft cfppm^

sue-

Those who disagree with our cess of the particular issues, an

these policy

Pr°blems as they existed at the
time of adoption of the Act have
keen resolved, there still remain

cancel out in a study of a relatively large number of issues. The

tw

such

a

.

m

program

pvppnt

+h

r_fric:

cooperative

rp«n?t
ilnp.
„nn(,„^pi, in

wuirh

Fa

p ^

.

Hp

will

hp

rpmiirpd

utiiftv^prvipp re<^uire»
t
. X

were

.

>

f

terest rates in the market than it successful. We believe that the
Deterred Tax Accounting .
would have been required to pay only possible conclusion is that
I do not suppose that there is
+?rea
J?uf Juris-: if the security had a restriction there is no significant difference any subject in the field of utility
?uC ^• unaer the 1935 Act covers on refundability. In the nature of between the market acceptance of law and accounting that has
imancing operations of the things, it is difficult to isolate the refundable and 1 non-refundable aroused as much and as bitter conre^aRaA. lar8e. holding companies evidence which would support or issues, and that call privileges do troversy in recent years as has
Redemntion of Bonds

Th

■,

.

..

anc, Aheir subsidiaries, acquisitions

contradict such

an

argument

or,

not raise any serious impediment the matter of deferred tax accounting.
Although I could not,
be there myself, I note that the,
effect upon utility rates of thig>

a
dispositions of securities and for
mafter, any similar argu- to the securing of capital by priPr°P.ei.ties> accounting practices, ment. There are obviously many vate utility companies.
'
3e^vlcinS arrangements, and in- factors which enter into the
I asked Mr. Pines to review
J^comPany transactions. It is in pricing of any security of which certain, "issues of western utility
JP1S. ^rea •
are J; f upon refUndability is only one. No two companies in the past six months
J?
whether debt securi- utilities are exactly alike, nor are since his previous study was com? sf
, ullllA;X
companies should any ^w0 issues identical in all pleted to see whether there ap,

matter was the subject of its usual
careful attention at the Phoenix

convention - of

the

NARUC

last

As was shown at that time,
reiundable.
.
respects.
To date, however, the peared to be any significant evi- and as confirmed by an extremely«
^ke redemption characteristic evidence which has been adduced! dence as to marketing results. He detailed brief since filed with us,I
senior securities has been a in support of such a statement found six such issues put out by the large majority of State agen^i
year.

veJT mucR discussed and debated has not been substantial or con- western issuers,:of which two were cies has had occasion to consider,
subJect for years. I have in the vincing-. On the other hand, the refundable and four had a five- this matter in one or another of>
I-.35* ^ad. occasi°n. t° restate the SEC has conducted certain inter- year restriction on refundability. its aspects as it affects either the
Commission's

policy

of

insisting nal

studies

which

point

unmis-

Of the four non-refundable issues,

accounting practices of operating

Volume

189

Number 5854

.

.

.

The Commercial and Financial Chronicle

14

(2635X
utilities
is

their rates.

or

singular

a

lack

between

as

The result

classified

uniformity

ance-sheet

Practically

deferred

of

states.

every
conceivable treatment of
this problem has been authorized

by

one or piore

and

each

state

method

commissions,

is

stoutly

de¬

fended by its proponents. The SEC
now finds itself
constrained by the

the

accumulated

credits

credits

to

bal-

reserves

other
Others

or

equity

cumulated credits

arising from the
accounting in
respect of both liberalized depreuse

or

non-

,

accounts.;
have
classified the accumulated amounts
as

part

a

of

restricted

ciation and

tion

surplus in the equity capital
few

sec-

lem

have

to

consider

problems

they

accounting

and

whether

affected

are

by the various
of the Securities Acts.

provisions
A I

the

involved

,

restricted earned surplus^

as

amortiza-

them

Order; No.

not included ;them
in-the
equity capital section of the bal-

as

in-the light

204

of

the
It

order of

an

Federal
be

of the

sheet.

ance-

.Still. ? other
utility" State regulatory commissions to
companies have followed what has which this company is also subject

attempt -,only to sketch been called'^he ; "flow-through'': as to a minor portion of its utility
background of our concern method; i.e.,. they have not em-* operations, authorized a restricted
very briefly.
tax
;>; ployed * deferred
accounting earned surplus classification. The
v, Section
167 of the Internal Re¬ and have shown in the income, other;-. State
commission
having
statement
normal f depreciation jurisdiction over the major dis¬
venue Code of 1954 authorizes
the
deduction of depreciation for tax charged and the actual current tributirig facilities had recently is-income
tax
provision, ; without sued an order directing the cornpurposes on fixed assets installed
provision for future, income taxes, pany^to transfer the accumulated
after Dec. 31,
1953, on a more
will

the

mitted
the

through

The

per¬

authorization

of

difference

deferred

in

treatment

credits

balance-sheet credits to

restricted

tax

accounting asAfoei
industrial ^concerns .and

life

in

assets

of

the

excess

of

the cost of such

only in

assets, but rather
shift in timing of the

a

deduction
ment

of

resulting
tax

in

defer¬

a

liability

from

the

earlier years to the later years of
the life of the related assets. Ac¬

cordingly, it is their position that
the

accumulated

Credit

is

serve

in

balance-sheet

nature

tax

cannot

be

be payable
and, consequently,
regarded as equity

capital belonging
holders. ^ •
Those

earned

re¬

a

that will

later years,

it

f

of

liability for the deferred

or

income

the

in

the

to

the

permitted

the

for

scribed

tax

purposes

over

period, ;under

five-year

at

pre¬

conditions

of

specific

emergency facilities installed after
Dec. 31, 1949.
The larger

depre¬

ciation
thus

amortization deductions

or

permitted

ratio

of
industrial
corporations
and, in fact,:-most such companies
do a large part of. their
financing
by sale of equity securities or out

to

opposed

accumulated

balance-sheet

under

the 1935 Act prohibits a been incurred by the charge to
registered holding company or a income for the current tax reduc¬
subsidiary company thereof from tion. They contend that no pres¬
distributing to its security hold- ently existing liability to anybody
ers, or publishing, financial state- exists and, therefore, the accumu¬
ments which are inconsistent with lated credit balance belongs to the
the book" accounts of such corn- stockholders. They also urge that
pany or with financial statements public utility companies should be
filed, by it with the Commission, treated differently from industrial
One of the considerations raised companies because of rate-making
by our staff in the case to which considerations involving consum¬
I have just referred was whether ers and because the state regula¬
the applicability of Order No. 204 tory commissions have jurisdiction
of 'the Federal Power Commission over rates. They also state that

.

of cash

internally generated." None

of these statements holds true for

in the

utilities; however, whose earnings,
though very steady, are severely

offset;

restricted by regulation. Here thel
debt ratio becomes of
great importance.
According to a study

for

tax

purposes

earlier years of the life of
the related fixed assets would be

by

the
correspondingly
depreciation
deductions

■

smaller
available

for tax

in

purposes

the

later

As a consequence,
years.
income taxes in the earlier years
Would be expected to be less than

made
pany,

by

the

Irving Trust Comthere are wide divergences

of views among securities
analysts

as
to analytical treatment of ac- to
the registrant rendered the
they would otherwise be if tra¬ cruals under deferred tax ac- publishing of any financial stateditional methods of depreciation counting, though they are
prac- ment inconsistent therewith viola-'
Were
employed, while the con¬ tically unanimous in excluding tive of the provisions of Rule 28.,
verse would be true in the later from
equity capital funds in com- 1;After informal discussions be-!
years.
'V
puting debt ratios such accruals tween us and representatives of

the

consumers

the

,

when placed in a
special reserve, the company, we determined not
of industrial com¬
On the other
hand, some' of them to cite the company's classificationpanies,-, a substantial number of
those
which
deduct
liberalized give the same treatment to a re- as a deficiency in view of the
depreciation in their income tax stricted earned surplus account so great importance of this matter,
returns follow the practice of de¬ generated.
*not only to that particular regisducting an equal amount for fiAfter extended consideration of trant but also to a large number
nancial
the problem of deferred tax ac-! of other companies.
accounting. purposes.
Consequently,
Other industrial companies deduct counting, the Federal Power Com-I permitted \ the' registration
normal depreciation for financial
mission, on May 29, 1958;! issued statement to become effective and
^counting purposes and, where two orders—one (No. 203) dealing the securities to be sold on the
the current reductions in income with natural gas companies sub- basis of full disclosure in footnotes
taxes are material, make a charge ject to the Natural Gas Act and. to the financial statements" of the
case

,

by
surplus

earned

since

the

equity capital
thereby improved, and
utility company is free to is¬

the

,

fin" the

benefited

are

restricted

method
ratios

are

1958. It is also interesting to notd
that, whereas the registered hold¬
ing company systems at the end
of

1957

classified

had

58.0%
^

their
the

equity capital section

balance

sheet

and

of the

42.0% .in

the

equity capital section, the respec¬
tive
ratios at the end of 1954
68.6%

were

and 31.4%.

Still Under Advisement

Public hearings on the Commis¬

proposed
held

were

on

and

now

we

policy

before

mission

statement

the

full

Com¬

April 8 and 10,

1959^

have the matter

un¬

der advisement. Some public serv-*

ice

commissioners, as I recall it*
the position that we should
not attempt to impose such a rule
upon
the
entire
industry, but
took

should

leave

states to
*

the

matter

the

to

regulate.

Unfortunately, with the situa¬

tion in this unresolved state, I am
unable to come to any very defi¬
nite conclusions.

I bring it up for

two rather limited purposes: first,
to report on developments in a
field in which you are officially

much interested; and

very

because

this

another

field

and

seems

the state

have

mutual

lution

calls

in

to

second^
to

me

which

the

utility commissions
problems whose so¬
sympathetic and

cooperative mutual consideration
and

understanding.

•

McCormick & Co.

otherwise

be

than

it

permitted

would

to

issue

under

*

-

Malmquist With

(Special to The Financial Chronicle)

regulatory standards, hav¬
ing in mind the deductibility for
tax purposes of interest on the
debt.

bo

SEC

for

Bertel

construction

of

accumulated credits outside

ing

/

*

CHICAGO, 111. —Bertel M.
Malmquist has become associated

.

That we are not dealing with
semantics, but rather with mat¬
involving material sums of
money, is evident from the fact

f

■;t

ters

that at the end

of 1957, according
put out by the Federal

electric

Power Commission, the aggregate

to the

orders do not make

mandatory the

amount of accumulated balancesheet credits of class A and class

of deferred

accounting for

concurrent credit to

a

de¬

a

the

other

(No/204) dealing with different positions taken by the
utility companies subject several regulatory" agencies conFederal Power Act.!' Those; cerned with this company's affairs.'

ferred tax account in the balance
Sheet.
This / concurrent
charge

financial

and

credit

those

tax

reduction

-

known

entry

for

has

current
to

come

deferred

as

the
tax

be

account-

use

tax

accounting

by

purposes

companies' which

elect

to

deduct

liberalized depreciation or
accelerated amortization in their

ihg.
A permissible alternative to
deferred tax accounting, followed

provide that-where

by

does

various

industrial

Which has the
rent

net

expense

reserve

for

cur¬

on

deferred

as

involves

depreciation
to the

companies,

effect

same

income

accounting,

tax

charge to

a

and

credit

a

depreciation for

income tax returns.

expense

♦

equal

also

provide

amount

an

to

the

for

in

such

amount

poses, but other companies which
accelerated
amortization

deduct
in

their

cial

tax

companies

have

invariably

clas¬

sified the deferred tax account in
the

balance

sheet

among

the lia¬

bility reserves or deferred credits,
or analogous accounts,
but in no
event

ers'

as

a

part of the stockhold¬

equity capital.

entitled

Deferred Taxes

The

Federal

"AcIn-

on

Power

Com-

by
amended
its

t

.In

the

utility

case

of

electric

companies,

these

applicable

account

new

orders

and

also

uniform

f

c^vfi,,-!'
iqw

•

.
i

r

--

ther^alter.in;,Jujy,

h

efv,°n

incr

TnftiHitP
Institute

of

Ceitified Public

ffitne subject of liberfinancial
accounting purposes. .The import
Th

are

considerable dispute

however,

per,

sidiaiy

accelerated

under

their

income tax returns has, as I have
pointed out, been marked by a re¬

•

;

of

company

a
a

statement

the

933

ana

the proposed

have

us

a

a

registra-

the

Securi-

or

ac¬

Utility Holding

issue

and

$291,464,000
reserve-type
accounts)
and
$98,322,000 in respect of natural
gas and pipeline companies (all of
was

included

in

reserve-

type

accounts), or a grand total
$792,755,000. At the same date,
the
registered
electric and
gas

amount
sheet

of

accumulated

credits

27.5%

of

the

of

balance-

$218,091,000,

national

total.

or

I

Bertel

T.

Malmquist

with McCormick & Co., 231

La

Salle

Street.

South

Mr.- Malmquist

formerly a partner in Glor^
Forgan & Co., with which he had
been associated for a number at
was

years.

New McDonnell Branch
'

TOMS

All

0£

aecountant

matters

involved

in

or

statements

q

e r

^

^

a

in

werereceived

views

0f

'and

^he

stated
no£

and sale

of

uniformity. Such first mortgage bonds at competiof accounting tive
bidding.
In
the
financial
respectively been certified statement submitted by the regis-

by reputable accountants as being trant company, which is also subin conformity with
generally ac- ject to the accounting jurisdiction
cepted accounting principles. Most of the Federal Power Commission,
public
utility
companies
have the balance sheet carried the ac-

g0

the

matter of

'

record only.

200,000 Shares
of

re-

comments.

Sterling Television Co., Inc.

commentators

Commission

far enough.
other

a

ISSUE

r

that

as

the

the Commission's invitan

NEW

material.1

-a very substantial number
comments

appears

footnotes

provide

are

of these shares having been sold, this advertisement
'

CLASS A STOCK

did

(Par Value $.25

On the other

commentators

per

Share)

con-

tended that the Commission
policy state-

should not adopt the

ment for various

not}
time

0f course,
to

replies;

summarize

I'

can

I

reasons.

undertake
say,

all

can-

at

of

R. A. HOLMAN & CO.

this

INCORPORATED

these

however, that

54 Wall Street

those who favor the Commission's

proposal generally take the posi1 SEC

Accounting Series Release No. 4.

June

9,

1959

.

;

RIVER, N. J.—McDon¬
nell
&
Co.
Incorporated
has
opened a branch office in the Lo¬
cust Shopping Center under tha
management of Clinton G. Hough*

accelerated

ciosure contained in the certificate

declaration

methods




surplus

with
the
Commission's
proposed policy and some even

under

Public

earned

bythe- Commission "to be misieading or inaccurate despite dis-

utility sub-,
agreed
registered
holding

Company Act of 1935 with respect
to

depreciation

.

Septem-

public

filed with

ties Act of

0

later,^in

markable lack of

different

and

totaled

utility companies (of which $402,969,000 was included in restricted

amortization, would be presumed

to ^he

witb-Tespect

.

months

1958,

tion

in

accompanied by words of limitation such as "restricted" or "appropriated")
the accumulated

Registration Statement Allowed;sponse to
i
.
*
tion
for

rp

Two

the

depreciation
amortization

nates as earned surplus or its holding company systems subject
equivalent or includes as a Pal*t; to the Public Utility Holding Com¬
equity capital (even though pany Act of 1935 had an aggregate

classification of the de-

for
lerrea t
tax credit.

:

gas

celerated

and $694,433,000 in respect of electric

having in mind the very substan-

Ac-,, -zed

Rui!^
(Revised),

search Bulletin No. 44

.

and

(Revised),

44

companies attributable to both

liberalized

credit" arising from deferred tax
accounting in respect of liberal-

1

financial accounting employed by
companies which have elected to
deduct liberalized depreciation or
amortization

ac-

counts

;

Uniformity

No.

Accounting

of

come."

A

Lack of

Bulletin

and

The .Notice stated that any fi~
nancial statement which desig-

cumulated

tax

returns employ de¬
accounting for finan¬
accounting purposes.
Such

ferred

.matter

ticular

which

of

amortization deducted for tax pur¬

B

Intention tq Announce Interpretation of Administrative Policy."

266)

related

books

-

(Account No!

this

companies

their

'

acting under the authority of the
various Acts it administers, issued
on. .Dec.
30, 1958,, a "Notice of

i>rovide for

trial

*'

,

employ deferred tax accounting, the balance-sheet credit shall
be
classified in
a
new! account

svstems of accounts to

indus¬

vxisw

- -

in

erated

some

•

",!" *;r,0?°8efl .
'
;
!
Largely as a result of this par-:

!

tlaI amounts involved, the Securities and Exchange Commission,

mission

amortization,

_!•./";.//

to statistics

Rather' they
the company

the tax effect of liberalized depre¬
ciation.'
With respect to accel¬

,

$292,451,-

not

correspondingly more
debt
securities for purposes of financ¬

with

-

accumulated

their

yet have available
the national total as of the end of

sue

to the income account for the tax
dffect representing a provision for
future or deferred income taxes

'

do

I

sion's

declining-balance tween
credit is properly classifiable as
and
the
sum-of-the-y ears-digits utilities is not surprising.
GenaPPeau
;
earned
surplus, although re¬
methods. Under Section 168 of the erally speaking, i little real atten- ' ; Rule 28 promulgated
by the Sec¬ stricted, since no current cost or
tion is paid by analysts to the debt curities and Exchange Commission,
Code, the: amortization was also
expense
to the corporation has
of

use

increased

000.

stock¬

adoption of
policy statement contend that

the

surPlus *° a reserve account, from
which order the company had in¬

of

might point out that one year
later, at Dec. 31, 1958, our regis¬
tered
holding company systems
had

the

over

fixed

.

liberal basis than theretofore

accelerated

or

deductions

of

may

one

depreciation

related

a

Commission.

Power

noted that

ized

amortization in the income tax re¬
turn does not result in aggregate

earned

sheet, while a
although identifying this:-classification

others,

them

stated

and

tion of the balance

growing importance of the prob¬

accelerated

restricted

as

surplus
part of the
equity capital of the company. Our
staff questioned the propriety of

earned

tion that the deduction of liberal¬

of deferred tax

New York

5, N. Y.

16

(2636)

The Commercial and Financial Chronicle

are

being paid for a conver¬
privilege which entitles

sion

THE MARKET.

AND YOU

.

.

the

The

bears

own

truly came into
this week—at least

tor

0 Aitnougn txie inreais
steel strike have undoubted¬

a

tive.

temporarily. After declining ly caused over-accumulation
varying degrees in five suc¬ of inventories in some areas,
cessive sessions, the market the overall picture seems to
really broke on Monday, with shpw careful control of inven¬
decline of 8.36 in the D. J.

Industrial
est since

Average; the great¬
May 7. A loss held to

tories. The ratio of inventories
to

sales,

down

20%

from

a

year ago, is the lowest since
four points followed on Tues¬ Novem*ber 1955. And al¬

day. Fund managers reported though seasonally adjusted
that during
the liquidation new orders are running $800
there was a dearth of sizable million ahead of sales, the
bids in some important mar¬ overall reduction in
backlogs
ket areas, including the utili¬ has been negligible.
ties. Despite Wednesdays
Outlook for the Oils
brisk rally of 9.65, the Aver¬
Although the petroleum
age so far this month showed
stocks have persisted as lag¬
a net decline of 17
points, or
gards through succeeding
about 3%.
phases of the bull market,
}
The Yield Factors
sentiment regarding them has
Besides the usual after-the- been
distinctly picking up.
event explanation of "the ob¬ Some paring down of the ex¬
vious need for
correction," cessive industries has been
recent markets have suffered reported,
along with an im¬
from airing of the Treasury's provement in the
price struc¬
borrowing difficulties. Thus, ture and a widening in the
Monday's break coincided refiners' spread. First quarter
with the President's formal¬ results thus far
coming to
izing of his proposals for rais¬ hand seem to indicate a
ing or abolishing the statutory moderate increase in profits
ceiling on the interest rate the for this year, largely concen¬
Government can pay on its trated in the
refining and
long-term bonds, and on sav¬ marketing companies rather
ings bonds. Thus, the bearish than the crude producers. The
market factor
of the
un¬ overhanging
inventory prob¬
precedented
excess
of
the lem and drastic limitation by
yield on bonds over stocks is the prorationing authorities,
being publicly advertised at as in Texas, will, it is felt,
the highest level.
Remaining make for the continuation of
bulls, however, are finding this divergent situation over
some

solace in the inflation¬

the near-term—with the

call

year

From

into

convert

$52.15

Ahead

'

All

Ambivalence Toward the

of j the

The

at

investor considering
public utilities finds him-; impress

self

message^to

with

mixed

world.

emotions,

the

e

i

i

.

rates on available
competing I doubt that
yields and price; or will he the conferees
give principal weight to the
long-term growth element in anything, but
many of the issues? Common- they want to
wealth

Edison

constitutes

good example of
steady growth
with its

price

a

a

American
it

now

60, down

Wollld

States.

locai

a

Castro

affair

insisted

and

the

nothing

to

or¬

do

a treaty signed at Rio de
Janeiro, Brazil, Sept. 2, 1947, all
are
pledged to go

member states
to
Carlisle

be

Bargeron

the

assistance

when

States is

interested in

A

few

of

member

a

attacked.

The

United

party to the treaty.

a

days ago Senator Capeof Indiana, called upon the
Department to reaffirm its

_

recent

a

were

Under

_

from

high of 64. At lowing just what part of the harh
price the stock is selling worlc*
want to get their mes- gtate

this

rebels

for

it.

state

j

Cuban

ganization * had

other

slow and

was

with

Pin the blame

company—

of

headed

Nicaragua
which is having trouble putting
down a revolution. Nicaragua ap¬
pealed
to
the
Organization
of

what they are
interested
in.

•

loads

reported

is

emphasize the effect
sharply rising money

ii

the

boat

World

Shall he
of

First, there was the invasion of
Panama by a group of Cuban
revolutionaries. When they were
rounded up and caught Castro in¬
sisted
that
they be treated as
erring boys. More recently three

governments repreGeneva
have
large

propaganda staffs.
They are vying with each other in trying to

Utilities

the

the News

By CARLISLE BARGERON

to be attrac¬

seems

'

Thursday, June 11, 1959

.

Washington

share

a

sented

in

a

to

.

at

through 1968. The common is
now
selling at 43. Hence the
price being paid for the 10of

By WALLACE STREETE

their

holder

.

common

..

^

its
estimated sa^e-t0' iust where 1S+-the V0I-d intention to see that the provisions
ns es Lima tea opinion they are courting. India, of 1hk trfiatv
Pnforr*pd
Hp
of $3.60 — up China, Indonesia? It is a cinch
insisted thatthe^Stett Department
figure of $3.28. that the United States, Great ^gfe!^Latin A^eHcan
Analysts calculate that the Britain, France, Italy, Greece, nations that 5 would S nS
aiiiiucu
annual earnings increase will
yi the Latin American coun- interference with the treaty. Pureecuiiiiigs, niuedbc wm tries are all on the
at

16 6

times

«««»>

Vr.™

arP

1959 earnings
from the 1958

slde

be

about

15

the

over

cents

share

per

West.

Russia

has

her

of

the

satellites,

five years—-

next

manifestations

t[on°

o£

are>

re vol u-

or

beyond

COUfse,

our

Eastein Europe and Red China. reach but when one Latin Amerisignifying a figure of $4.35 at
are no
to be swung can country sends in reinforcethe end of a five-vear
in°!Le ?
?
any~ ments or permits them to leave

I

' i
m
live year in thlng that comes out of Geneva.
terval. The company adopted
a matter of
fact, it is begina
new
dividend policy last ning to look as
though the only

consisting of

year,

disbursement,
dividend

the

at

$2 cash thing that will come out is that
stock we will be dealing with East Ger-

a

plus

the

year covering all of the
ance of the
earnings. At

bal-

end

value

of the

$3.44,

make

a

separate treaty with East

dividends

yield of

or a

We
*

*

:j!

the

another

purpose

purely

a

country it ceases to
local disturbance.

of

There is

doubt but that

no

be

the

to

r0ute

Nicaragua
inspired,

mUnist

Com-

are

po£ Win. B.
Chappell Pres.
undoubtedly make
Of Bond Club of N.Y.
fast- agreement
with
V

tion.

5.75%.

hard

com¬

for

Z7 stem's Tb^VmSt &

the Germany which we can hardly
present price of the stock, the °w?ser T° discourage him when
total

COUntrv

participating in the revolution of

a

of

would be

the

will

a

and

One issue

which is becom- East Germany guaranteeing the
ary aspects of the prospective panies possessing large re¬ •Tcorridor into Berlin. There will
rise in the debt
ing ae-nyDriaizea ana streamserves
ceiling. Also
coming into their own
undoubtedly be incidents when
lined into attractive invest- the East Germans
there is the bullish
become
obpossibility over the long-term.
ment shape is
of a
*
*
*
far-flung Olin streperous and we will have to
politically-inspired Con¬
Mathieson Chemical Corpora- use force. In this way the reunigress causing a fresh resort
Speculation over the im¬
;
*
fication of Germany might be
t on. Last
to the
year this company
printing press via a plications of the coming of the
krought about. The spectacle of
turndown of the interest rate smaller-sized
reported net earnings of only Us killing Germans
East Gerautomobile has
70 cents per share. However, mans—might serve to unite all
rise proposal.
spilled over into the oil mar¬

_

William

First

Chappell

B.

Boston

been

elected

Bond

Club

of

The

Corporation,
President

of New York
ceed
H.

has

of

The

to

suc-

Harold

Cook

of

-

t

ii

Spencer Trask

■

„

„

& Co.

The election

—

and

.

Business News Constructive

since

this

area.

It is estimated in

was

.

Those

lieve

observers who

be¬

that

signs of business
recession will
ring an audible
finally "closing bell" for the
benefit
are

of

the

market

bulls,

will

decline

will

be

sale

sated

the

slightly;
than

more

for

in

which

compen¬

other sectors

of

industry.

encouraged news-wise in
optimism over the fu¬

:Js

their

$

cents,

investments

of

38

of

.

agreement

will

come

out

of

the

operating income conference.
Any
limitation
of
$2.20. Since the aI™s.
agreement
would
mean
nortion nf
portion oi cnerial ex- nothing. We have no more than
special exa

in

with

connection

corporal»s

many

guard

in

West

Club

the

Day at
Sleepy

Hollow

Coun¬

try Club.

Ger_

Raymond D.

"

now.

the

of

Field

the

greater
greater

main

the

events

Bond

amounted to

penses

*

$

of

annual

meeting
took
place as one

after'

writing Germans.. Blood is thicker than
off $2.20 a share in
special wa fr'
some
quarters that consump¬
tion per gas station customer charges and a credit from the

keting

W.

B.

Chappell
Stitzer
of
plants has been comThe worthwhile thing would be
Securities-wise, the "tech¬
ture course of stock
White,
Weld
prices.
pleted, future per share earn- Russia's agreement to withdraw
nical position" of the oils
& Co was elected Vice-President
The previous all-time record
may
ings may well work from $3 t° hef. bord®rs: which she has no to succeed Mr. Chappell. The new
be in a state of
for manufacturers'
long-term im¬ upward. This
sales, es¬
digestion of new Sis^d the Question oilur being officers als? include Orland K.
tablished in January 1957, pairment by reason of their facilities
has
been
mainly
already existing predomi¬ centered in
£»£.
was
broken in April.
The
chemical and of the question, and a nuclear ,
nance in the
and Phiup k
Bartow
Jr
portfolios of the aluminum
month also set a new
peak for
plants. The com- agreement there is not much left o£ Drexel & Co., as treasurer.
mutual funds and other insti¬
new
orders, well in excess of
pany's financial condition is
new

gSMVSSZAK

their level in March.

ment

of

showed

Depart¬
Commerce figures

new

tutional holders.

ther^ should® bey °summR pThf% nrew members of the
Board of Governors also elected
a

-

strong, eliminating the need conference
for
finnnrma
tKo c0"ie™ce*
new
llnancmg over the
Yet there
„

Back to Convertibles

construction out¬

As

lays at the highest

record for ries
the first five months of this

a

«c»gSJ> Jtgi

by-product of the

now

wor¬

nvor

foreseeable

future.

,

,.

...

Robert

are:

,

probably will be

one.

Continu- Th® pressure on Mr. Eisenhower

over the course of
,re"
stock ing giowth k assured hv the slst. ml
ing growth is assured by the
The question will be that if
prices, renewed interest is fact that each of
th^ domestic Khrushchev is so anxious to talk
year; with a marked pickup
again being shown in con¬
in revenue
operating divisions is in the
freight carload- vertible bonds—as a
way to
ings. Apparently manifesting have one's
that such a conference
cake and eat it process of setting up seven- bility
consumer
prosperity and con¬ too. One of the more
interest¬ year expansion programs— "'in'the"meantime matters to the
fidence was the record
April ing issues in this area seems which
might well double south of us, in Latin America,
increase, by $423 million in to be Cerro
seem
to be worsening.
There is
de Pasco convert¬
present revenues and earn- a
consumer
debt, heavily cen¬ ible debentures
growing feeling in Washington

Morgan

H.

,

tered in automobiles. (Come

bear
mous

market, will the

spawning of

credit

garded

of all
as

an

a

enor¬

consumer

varieties

be

re¬

unhealthy fac¬




Selling at 108M>
4.8%,

this

issue

yielding

stands

investment value—or 94 and
6

within

the "next

five

% yield. Hence, 14 points

that

strong talking has got

some

to

[The
article

views
do

expressed

not

in

this

necessarily at any
those of the
"Chronicle" They are presented
as those
of the author only.]
time

coincide

with

be

is

years*

at

about 14 points above its true

a

ings
°

and

,

feeling his oats and, while he

may

done

not

to

be

Cuba's

directly

Castro.

He

responsible

for the recent provocative acts
against Panama and Nicaragua,
he

lent

encouragement

to

them

by his silence and known attitude,

Baldwin

of

&

Co., Robert
Kidder, Peabody
& Co., and David J. Lewis of
paine, Webber, Jackson & Curtis.
winners

of

in

Golf

the

^ffalways'the"

Slbs-oi 1979.

B.

Stanley

j0hnson

c

Tourna-

^-featUr6p **■
* TLo °f
Ex-President's

Cup

for

Low

g™f: William E. Button W

lywekf'A"rn
vvnue» vveia <x ^o.

'

Candee Cup for Low
George Nelson, Gregory &
and

George

Christie

against

Bell,

Drexel

&

Net:
Son,
Co.

Cup for Matched Play

Par:

David

McElroy,

Clark, Dodge & Co., and Clarence
Bartow, Drexel & Co.
,
The finals in the tennis tournament

were

rained out.

Volume

189

Number 5854

.

.

.

The Commercial and Financial Chronicle

(2637)

THE FORWARD LOOK

New truck swims

rivers, climbs

mountains, floats from the skies.
\

•

Developed for the Army by Chrysler Corporation,
this aluminum

yet rugged
Even when

2^-ton-capacity truck is light, and

enough to be parachuted from the air.
loaded, it is still lighter than empty

conventional 2J4-ton
carries it

over

Eight-wheel drive

rough terrain with the

tank. An out-board
rivers and

vehicles.

on

lakes like

the
a

ease

tailgate takes it

motorboat.

of

a

across

The incor¬

poration of commercial truck components makes it

readily adaptable to volume production in existing

manufacturing facilities, saving costly tooling and
millions of dollars for the taxpayer.

Another example

of The Forward Look at...

CHRYSLER CORPORATION
—

•

'
•

-V
,

L,; r.v>m%

....

.

:.




mJZsfc?'''

18

The Commercial and Financial Chronicle

(2638)

because of the

There Goes Free

Enterprise

New York "Herald Tribune"

asserts

loss of

threatening

brink of

on

are

we

inflationary

ravaged by

revolution,

economic

it

Doesn't this destroy forever
old economic
and demand

pressures.

affects

of

as I said be¬
greatest problem.

us

and abroad will be,

when

fore,

will rise?

price spiralling. Concludes our free enterprise system is slip¬

predicted, notably
industry.

ping

great

of

A third

be¬

measure things.
If you're a
statistician
who
measures
from

disaster.

Oh,

the basics of 20

predicting another stock

post-depression,

crash.

1939—then

I'm

not

market
We

depression
worst

the

as

not

so.

worst

The

sug¬

gest,

I
is

loss

of

our

us,

other

years

considerably more prosperous de¬
pending on success in Detroit. The
sale of the new cars, the '59s and

thing that
could
happen
to

the pros¬

measure

of this
decade, the automobile industry
will power the economy. We will
be moderately more prosperous or
all

in

As

is

This

us.

that

prewar year of
is less to cheer

there

you

—

get
I.

Rogers

unique enter¬
prise system
—the system which permits us to
invest risk capital, to manufacture

then I should like to have you con¬
sider the startling fact
in
imminent
danger

system.
Consider also the
corollary fact that once lost, it is
'

,/r. ■

'■

economy,

spending, harvest yields
and business expenditures fail to
measure up to expectations. '.; '- :, ;
These are vague fears, however,
particularly at this time::when
things are looking so rosy.

approach it in

we

a

more

disturbs

Spending will hit

National

Gross

the

of

peak.

a new

is

total

Product,

bandied

idiotic

with

around

record.

to the White House,
I

v

the bumper crop of

that

that

babies

All I'm

them
,

the

saying is this.

kid

formations

in

than

babies

more

any

other

were

in

year

that decade, we reached

the bot¬
great depression. More

Production will set a new high. tom of our
horrifying truth is that our
homes were destroyed by fire that
Construction will hit a peak.
very prosperity is what will lose
Savings will reach a new rec¬ year than were built. This, I sub¬
it for us. Not depression, where
mit, is not prosperity. Yet popu¬
ord.
we turn to government help with
Business
expenditures
will lation was at a peak and so were
make-work, make-votes programs
births.
reach new records.
but
prosperity itself is our
There
is
no
guarantee
that
In short, we will be prosperous,
greatest danger.
You remember
than we have population and more population
the old slogan on Cracker Jack— more prosperous
will keep everyone's pocketbooks
The more you eat, the more you ever been before, provided there
full and everyone's bank balances'
It's the same with pros¬ are no unforeseen setbacks.
want?
I'm not afraid of being wrong. bulging.
perity.
We have become, as a
This prosperity will come
people, insatiable, not content with I'm perfectly willing to make a
forecast
of
specific figures for through developments in manage¬
mere good times, but hell-bent on
ments
or
corporations ' and ' dis-•
overwhelming wealth and over¬ 1959. You can take them down,

Prosperity? Regard

our prosper¬

months of

ity for the remaining
this

i

year,

Most Americans will live better

in 1959 than

•

•

..

Dollars will be tempted from
easily
refilled
wallets
by
the
greatest
array
and
variety of
things and services that imagina¬
tive and enterprising man has yet
conceived.

This, anybody will tell you, is
prosperity.
The recession, that bugaboo that
foremost in everyone's mind

was
a

will be all but forgot¬

year ago,

or

Eve

when

1959

ten.

is, it will continue to be,
prosperity.

paper

to credit

We

will

have

our

pros¬

great deal of

a

perity to inflation.
tc blame most of

a

We will have

problems

our

on

inflation.

We

are

It's

economy.

New

entering

a

new

the

will

a

This is

goal

reach

of

that
us

in

will

be

just

this year of

1959.

$439 billion in 1958,
to $465 billion in

was

1958 will reach

$31.7 billion in

•

deceive'

We

be,

or

we

The records'will

as

thing

the

sion's
end

end,

of

who remained employed (and five
million
unemployment out of a
total labor force of 65 million isn't

bad, after all)—those who re¬
employed—received high
wages, and some even struck for
so

mained

.

That the Production Index
Federal

Reserve

of the
which

Board

141 in 1958 will average

was

145

in 1959.
That

spending

by

consumers

us

reached
a
staggering
$291.5 billion in 1958 will climb

which

to $300 billion in 1959.

That

expenditures for

and

new plant
equipment which amounted
$30.5 billion in
1958 will

jump nearly $10
billion
That

in

new

billion

to

$40

1959.

reached 1,099,000 in 1958 (I had
predicted 1,100,000 a year ago)
expenditures

last

which

by

to $50

So

boring.
figures.
be

on

how

billion

$48.8

increase

billion this

much

construc¬

slightly

year.

for figures.

They can
But these are cheerful

Rogers before tbe
Association, New York

1959.




bility in

own

markets and

production accordingly

have

we

a

guarantee of sta¬

industrial economy—
and without stability in the indus¬
trial side of the economy, there
can be no assurance of
continuing
prosperity.
our

Don't

get me wrong. We'll be
in 1959, all right, I'm
talking about the future.
,

provided just profits for producers

laborers

to

It has also

incomes

the

the

most

the

for

most

menial

,rexalted of¬

families

been

It's

dethroned.

true

that

if

their

financial

and

spend

spend and buy and buy there will
be

prosperity—but most of it will
cling to the producers of the goods
and

services

you

urged

are

*

to

purchase.
Most

of

the

producers plan to
raise prices this year.
They, will
be forced

do it

to

because of

ing costs of operations.
of

sales

they

ris¬

The huge,

predict, for
cases

There
us.

are

Some

some
we

definitely.

ahead
hap¬
hope to

pitfalls

know will

improve during 1959. As a! result,
they will be willing
spenders,
eager buyers
of the; goods
and
services.

-

proclivity which keeps f

Some

we

avoid.

people
ices

are

some

to

consider:

First, there may be a flight from
the dollar by
foreign investors

,

are

like

market.

for; spending'

have

to

a

consumer.

You

don't

sharply about
rising prices.
But-if
you
are
spending most of your income on
your family budget, then you're
primarily a consumer and only
secondarily an earner.
s
•'

v

worry

so

Since the recession's end corpo¬

rate

earnings have shot up at a
startling rate. There's the threat

in

.

Congress

kind
ords

of

price

show

to

put

across

policing.

thai, in .the

The

some

rec¬

"poorest"

But

in

a

long time, the automo¬

buying goods and. serv¬ steel-using industries. Now most
It is a seller's Congressmen aren't smart enough
a

seller's market .you

expect prices to rise somewhat,,
last year,

when sales

,

were

Revolution

dergoing its
revolution

which

one

revolution

own

less

no

•)

industry is un4
severe

—

a

than/the

projected Henry 'Ford

from the Model T to the Model A
and thus saved a
company.The

autoindustry

has

floundered

for four years now on the

around

car

-

problem

car

which is

versus

-

and

-

standard

seems

-

have

to

product

curious admixture that

a

,

clivity

crazy.

In

Auto

blends the/European sports car
an
even
break for the
with the conventional American "
people whose con-r;
You might call it a
stant1 purchasing makes the whole automobile.
Studebaker's * Lark
operation possible and whose pro¬ sportsmobile.

year

degree.

wheels of American industry

turning at full capacity.

consumer, the

bile industry raised prices. So did
the steel-industry.
So did many

some

the

provide

to

All right, so this is a time when

believe

is
im¬
proved and that it will continue to

solved its problems with a

prevent qpward price adjustments
for

ever

situation

most exalted—are consumers,
the
organized
society does

ondarily

we

still

are

in its
Reports, says

than

sports

and
not

in

circum-

outstanding

Research

more

It forgets that all Ameri¬
cans^—from the most menial to the

ficials.

.

themselves will not in most

Pitfalls Ahead

see- what
has
happened.
highly organized society has

*

University

Michigan,

The automobile

You

executives,

economic

It is this, which is of
paramount
importance in analyzing -the

-

guarantees
Another way we deceive our¬ the continuance of prosperity.
selves, and this is linked with ? Now, theoretically, no stock¬
our reliance on the marriage bed
holder should object to this ar¬
to produce our prosperity, is our rangement for it insures that the
bland acceptance that in America,
corporation will make money and
the consumer is king.
They say that dividends will be paid. But
that if we continue to spend and
stockholders, like almost every¬
spend, and buy and buy, we'll one else, are consumers too.
have the most prosperous period
There's a great cleavage in our
in mankind's history.
economy, of course. -If you earn
more than
Well, so we will, but believe me
$100,000 a year, you are
—the consumer s no longer king.' primarily an earner and
only sec¬

volume

Mr.

Chemical Research

City, May 21,

were

will

year

for

-

just

their

provided

the

occur

months ahead. Consumers
of a mood to buy. The

operating costs high, and prices
/ throughout); the,
economic

high,
dip.

from

which

starts

insulations

workers,

He's

housing

the

than

hasten

stances.

It is this

provided

measure

■

reces¬

more

,

dips which

future

any

increases.

by benefits in wage contracts kept

This,

it will

as

any

Consumei

of
corporate -profits
high." Those
laborers

recession

their

.recent

our

recession.

the

Our

' '.-vy f.

• ••

anything else, hastened the reces-;

of

Thus,

jl

to
spend their money - in
times and bad. They spent
much as they could all during

show you that throughout most

remained

■"

good
'

ourselves ' if

think otherwise.

to

prosperous

$45 billion in 1959.

Here
talk

Product,

1959.

pen

Everything will depend
*A

National

That corporate profits which were

Within another year we'll have a
half-trillion dollar national econ¬
—

Gross

king, and
key in your
king. You do

tinue

and

will

advance

tion

new, and in time the
historians will find a name for it.

or

for

not

that:: sion taught us is that consumers,
will not given the inducement, will con¬

Consumer Dethroned

coveries in the research labs. Only
when managements devise ways

plan their

econ¬

longer a postwar
That economy
ended
no

something

out

records

So, here's what I'll predict:

That

Economy

with the recession of 1958.

omy

Year's

New

the

of

will reach 1,500,000 in 1959.

The

omy.

next

all

in.

are

to

It

praise

which

They'll earn more money and
they'll spend more money. Also
they'll
probably
borrow
more
money.

hell

That

they did last year.

want to, and either give me

the

next.one

—

if you

the

are

reason

\ So
powerful has ^become the
grip of organized - labor on the
producing facilities of America,
so
thin has become the margin
between the producing costs and
the selling prices, that inflation is
unmanageable—and the consumer
has lost his throne,
i v ;. : -

consumers,

■

1932 when

The

T

Now I'll

expenditures for homes and
furnishings—but bulk of popula¬
tion in itself is no guarantee of
prosperity.
;

same

cannot

The

babies and the

are

—and

;■

be, stopped.

cause

■

power.

Don't let
about how you, as

you

consumer

•••'•-

*•:

■

,

inflation

,

marriage

new

-

Well, for the

keep hearing the theory that

The

burdening

deception to add to

already confused
economic
thinking of the nation: ; • r
■

year

why?

so¬

phistication from Toots Shor's bar

In

output

and

the

beyond

'v'• *'

throned.

primrose path of complacency by
the
pied pipers who,/, write the

born

new

it

learned economic theories that get

of

a

as

deception.
We're deceiving our¬
selves, about our economy and our
economic potential, led along the

goods and services, will establish

measure

delusion

VV'
More

,

inflation

much

so

admit

slightly higher.

from trade to trade.

or

So we'll get more of this.

such—when ^ that you hold
off, when prices'* hand. You are

fell

"ad-J

lower
on
a
recessionary
not hold the key.
Don't permit
Today, there's no such re- ^ the fuzzy thinkers to talk-'you
ward
for saving money against into being a puppet kin^. i ^ -f
;
■
such a day.
If the, public ever
Now, wh^t does all this have, to
finds this out, there'll be a defi¬
do
with the economy for 1959?
nite reaction in the, savings and
Well,: it's an indication of the
thrift, accounts of the-,banks:
pressures that' will be brought to
So the consumer has been de¬ bear on our prosperity this

me

you

;

and yachts and

market

on

turned

It's

not

cally insure prosperity.

Picture

But, for 1959, here's the picture.
Prices will remain unchanged to

The

what

most about the months ahead.

week

ho

reward

a

lay all

to

inflation

cycle.

swelling population will automati¬

1959

The

the

Disturbing Factors
tell

gets

ances

t.

I'll

is

for

under- and do not fluctuate from week to

its
own
virtue.
In the old days the
prudent could
hang- onto •* their
money and do their major buying
—of homes and cars and appli-

vacation

or

fashion.

sedate

that we are
of
losing

that

irretrievable.

dollar

whether

goods or perform services at a
profit. If you enjoy the system of

profitmaking, of profit incentives,

we

jet thrust toward our half-

a

trillion

Donald

whether

determine

will

'60s

the

thrift

spending; next autumn if

.

thing that
could
happen
to

years ago

perity. of this new era as against
the prosperity of the postwar pe¬
riod, then it's pretty cheerful to
contemplate,

a mar¬

crash and

ket

If

about.

to

seem

t

regard
a

economic

an

3'ou

thatv

logically

consumer

There

philosophies,

blame

ministered prices"—that is, prices
which are iixed by the producer

.

gets a real
longer any
economic circumstance where

letdown

a

economic

conditions

no

the

break.

in the steel

possibility is

follows

are

which

Another pitfall is the. possibility
a
series of strikes. Many are
one

it

Thus

the

there

in total

eco¬

come

around'

.

could

It

currencies

and Monopoly
being prodded

is

peculiarly liberal and doctrinaire

-

No. Break for the -Consumer

world.

union

revolution.

softening almost
It has less value in relation

other

to

;

the

is

dollar

daily.

We are at the brink of an

nomic

our

The

from us, and urges us legally to prohibit industry¬
bargaining and preserve corporate competition.

away

wide

our

prosperity, with

the

in

by the Committee's Chief Econo¬
mist, Dr. John M. Blair, a man of

is

there

when

Anti-Trust

Subcommittee,

prices will 'drop and
there
is prosperity prices

gains in Gross National
Product, profits, production, consumer spending, plant expan¬
sion, and housing starts. At same time suggests following
pitfalls: (1) inflation and flight from dollar; (2) labor strife,
and (3) possible letdown in total spending. Emphasizes de¬
thronement of the consumer, who is sabotaged by wage and
tremendous

Senate

regulating the prices

land—that

the

the

theory about supply

recession

as

and..concessions

contracts;;' vso ' the-; present'
Congress is going to have a con¬
siderable
amount
to
say
about
prices. Sen. Kefauver, head of the i

moaning about the recession
they reduce prices?
:
v

here

Inflation

system. Predicts

unique economic

and

Thursday, June 11, 1959

.

wage

—did

monies inter¬

the

changed in the European Common
Market, at the same time that the
United
States
dollar
is
being

Business and Financial Editor

Publicist

and

mark

man

By DONALD I. ROGERS*

.

benefits

falling off, when every producer
in the land was wringing his hands

gradual strengthen¬

of other currencies', such v as
the British pound, the West Ger¬

ing

.

to

realize

that prices had to rise
operating costs rose and
operating//costs rose« because of
because

is

an

And

example.
so

look

at

stance.
Buick

So is the Rambler.

the

are

the

'59

big ones. Take a
Buicks, for in¬

They're nothing like the
which, when I was a lad,-

ranked

General

as

Motors

No.

2

car.

Before the year is out, the
models will be on display,

1960

and,
the Detroit experts, they may
excite the American
imagination
(and the American pocketbook)_

say

as

other

no

So

be

perity

cars

since the Model A.

it—that makes the

even

more

this

way

It's

pros-

vigorous.
throughout

the

American
are

on

economy.
New ijftodels
the way. New temptations

for the wallet-bound dollars;
for instance, should I

perfectly good
frigerator if the
just the

same

Well, this
the

new

as

year

models

Why,

replace my
five-year-old re¬
1959
my

models

are

1954 model?

they hope to make

so doggone attrac¬
forced, either by my
my natural desire to keep
my martinis better refrigerated,
to junk the old and buy the new.
'« In
our own town
here, the big.gest single industry is the garment
industry which last year suffered
one of its worst
periods in recent
history. It'll be better this year.

tive

I'll

wife

or

be

"

The

Number 5854

189

Volume

.

.

The Commercial and Financial Chronicle

.

semi-male females and the
males who
design

semi-female
women's

been

have

garments

forced to the realization that most

American

like their women
and not like

men

gain for wages, or all of the cor¬
porations getting together to 'setprices? There is only a difference
inj degree. For wages constitute

*

(2639)

lapses at the bottom of the indus¬
trial heap, it runs to Washington
and

makes

out

a

of

case

sity.

away from us
us
realize.

: i

85% of the cost of most manufac¬
tured items. .Prices

On

:Vj

Our Economic Strength

;

^

The character of the "new econ¬

omy"
into
which America
is
emerging—or into which we are
— can be demonstrated
by the recovery from the slump
"^ii last year. It showed the ability

evolving

of the economy to stand up under
The v built-in stabilizers
&• duress.

worked

su.

well.

fof- received

Ah special

The

;

-their

unemployed

incomes

state

from

the

the

other side of

no

man's

markets.

•

our

things — only these
things —» will keep intact the
capitalistic free enterprise system
which has made this nation great.
two

.

In time, I submit, we will find
corporate world, with its
own
peculiar brand of corporate our.-manufacturing processes as
gutlessness, - is * not doing much u mired-in government help as is
more to protect the free enterprise
our. agricultural industry.
And there:goes free enterprise.
system than is the industry-wide
labor, union. :
...v I
state these facts deliberately
^ V .
'.vA

land,

The

pany,

These two

-

.

This

concerns

us

not

alone

as

York

Pension

660

Planning

Madison

City, will

seminar

hold

pension

on

sharing plans

on

and

the subjects to be discussed will

be
pension, profit-sharing and
husbands, fathers
and individual humans, for: it is group insurance
plans; coordina¬
thi§ system which makes us free. tion with executive compensation

patHots but

as

.

Under

ordinary

the extreme and
pressure

extra¬ <;to

scare

sion

by the unions,

you,

for I feel it

my

mis¬

• arouse
the
thinking
Our
many corporations cannot remain .businessmen of this nation.

competitive.

free ^enterprise system is

Every time one col-

slipping

programs;

Carroll Co. Now in NYC

^ to

Carroll
its

Co,

is

now

conducting

investment business from

collective

bargaining;

taxes; coordination with personal

150

estate

plans;

pension

plans

foreign affiliates, etc.

Broadway, New York City.-

.

or

no

of the future. Call it
stability, perhaps. What it means
is that there will usually be prosperity.
When there is not, the
.

*

downturn

will be cushioned by
the so-called social benefits, built

4
2

into the economy and most recessions of the future will be of short

1

tii.

duration,

y

So, what's
^

On

the

,

*,

i

so

t,

bad about all this?

surface

it

like

looks

^ fairly pleasant prospect

—

a

every-

body prosperous, unemployment
■■fri low, employment high, recessions
of the future limited to small dips
in the chart lines.

Wy The hitch is this:
<

We are not

considering the major hot

^

our

time.

war of
I mean the hot war be-

;' tween the two economic

giants in
our land—giant labor and giant
capital. These two great mono-

■ft
T

'^ liths, engaged
in their titanic
Struggle for supremacy, pose the
dl greatest danger to our
economy in
our time—greater by far than the
f
threat
of
imperialistic commu'

£-

nism.
*

*

■l

We, with

ideals

ideas

fuzzy

our

have

created

and

these

two
warring goliaths. Labor On one
side.
Corporations on
another.
Ah
unbridgable chasm ^between
t/.' them. Nationwide labor unions
f-f with responsibility to no one have
so
distorted
the philosophy
of
.

Y."
*

'

& labor that few laboring men have
any loyalty to a company or an
r

Industry; butv loyalty -only for
their union, v ■
t
r 1 .
;;
To stand against the ever-in¬

;•

.

t

Keyed cutawaylof

...

creasing demands of these nation¬

*

a

Nevlns 40-foot yawl shows a few of the many places where Anaconda Marine Metals are used

building-'fine boats. Designed by Spprkman & Stephens, N. Y. Built by Nevlns

in

Yacht Yard, City Island, N. Y,

wide unions, corporations them¬
selves

must

become

nationwide

giants, acquiring, merging, swell¬

ing, eliminating; competition, until
the corporate world towers on the

pther side of

the economic novirtually as formida¬
the.sprawling unions.; ;

raan Viand

ble
v

as

don't

You

have

smoke

to

a"

thinking man's filter to know that
the industry-wide labor unions in
America

■

today

have

almost

Timited

economic power.
What we sometimes don't

'

i<
f

■T

a few corporations control
whole industry.
I submit the
automobile industry for one; the'
steel industry for another. These

a

o

tare

2

f

■J.--

FASTENINGS: * Keel and frame bolts, 2 screws

two

most

important industries and their activities concern every dollar iri every pocket.
our

6

3

w'lnches, 7 all jspar

10 mast

13

There

is

this

one

difference.

employ in Washington a whole
army of legal experts in the Antitrust Division

*rs
>

of

the Justice

De-

partment to evoke constant har-

'lassmeni against the corporations
to prevent any One of them from

X *

getting

too

big,

<1

market

and

to prevent

a

hunk

of

any

to set prices.
,
..-J
Now I ask you what difference
it makes. What is the difference

4~y

,

i-

J

.

an

wuthstand-the twists and strains of even

judder strapping and fittings—Everdur. Power
or

turbulence—

I

normal running and to stave
i

sion's

naval brass, manganese bronze or

phospho* bronze, 14 Rudder
HAR0WARE:

16 binhacte

POWER: 17

post—'tobin Bronze.

Hinges* handles, 15 lights, trim,
housing—brass

or

everdur. "*

1
* —

Propeller shaHfng—Tobin Bronze. For

lWftli speed, heavy duty—Tempaloy. Fuel line,
18 muffler,

liFexhausttublng—copperr

20 Fuel tank—finned copper or

MlSCEUA^EOUS:
copper

21 Pfumblng for

tube-with. brass

or

bronze fittings.

tinned Everdur.

attack, metals ;of

kinds

are

required*?

For

Tobin

Bronze® and

corro-

special

instance,

Tempaloy® for

propeller .shafting.
Because the

'

yawl above contains vir¬

tually every important metal part foupd
on

any

type'of pleasure boat, it illus¬

tion and safer
ment

ways

these Ana¬

boating. The develop¬

of marine metals for

pleasure,'

naval, and commercial craft demon¬
strates! just one facet of Anaconda's
broad research program in

the

non-

ferrous metal field.
If you
copy

of

would like to receive
our

•

a

free

illustrated twenty-page

booklet, "Know the Metals in Your

Boat,'-' write to Department' X, The
Anaconda

Company, 25 Broadway,
N; Y. >
sfu/B

New York 4,

AnacondA
f

*

I

.

industrywide basis to bar-

(

\




off

many

Everdur® for fittings and fastenings;

finned Everdur.

hebdandgalley—

22 Water tanks—tinned copper or

boat's relentless enemies.* To-

a

unions) getting' together

between
oft

filtings-j-Everdur. ** j

slipstream

elements that make boating the

numerous

the
and

.t i all of them from getting together
r

also

strapping, 9 chain plates,
step, 11. centerboarcfand 12 trunk,

boat metal parts in

conda Metals make for sound construc¬

popular a/id tltrilling sport it is—are

turnbyckles, 4 cleats, 5 chocks,

STRUCTURAL! 8 Hull

"

{ ' We

for

trates

the very

planking, fittings, and hardware—Everdur.
FITTINGS:

the

Rough water, salt spray, brisk winds—

REFERENCE LIST

.

where

AI

r n

'

'
per¬

porations have almost equally unlimited
power.
These ;are
not
'monopolies but: oligopolies —•
,

..and-all industry

uri-

ceive, however, is the fact that in
some basic industries, a few cor¬

profit-

June 25. Among

'Y prosperity
."ft-

New

one-day

a

This is the nature of America's

'

? "

was

Com¬

Ave.,

Federal funds.
panic. There was
si no forced liquidation, mo forced
unemployment.
Those who; re¬
mained
employed continued
to
spend liberally.
>
q

.tV". There

■'

In New York, June 25

enough
alive.

Planning Co.

To Hold Seminar

see to it that there are
corporations in any one
industry to keep free, enterprise

-

v

union

We must

-

-

Pension

prohibit by law indus¬
bargaining. * We
must find, somewhere, a political
party with guts enough to do it.
try-wide

...

Widespread Subsidy
constitute, of
As a result we aref subsidizing
scrawny
little boy s, and that course, 100% of the cost to the
women
like to dress, to please consumer.' Thus, we have a whole' in one way or another nearly
array of legal talent to
police every manufacturing and produc¬
their men. As a result we'll have
*
some
female-type fashions this 15% of the cost of an item, while ing industry in America.
s
And then we wonder why we
year which will sell better—a lot we ignore those who are respon¬
11
sible for 85% of that cost.
> are not able to compete in world
better—than last year.
"
~
like women

to look

faster than most of

We must

neces¬

,19

PRODUCERS OF: COPPER

GOLD

•

ZINC-LEAD-ALUMINUM-SILVER

PLATINUM • PALLADIUM • CADMIUM • SELENIUM". TELLURIUMl
URANIUM OXIDE- MfANGANESE-^PSENIC-BISMUTH* INCtlUNi

•

in

20

The Commercial and Financial Chronicle

(2640)

(kowlh Areas of the

f

t

major fibers, competition seems
assured, but the area offers op¬

Arthur D. Little, Inc.

Cambridge, Mass.

consultant

research

Industrial-economics

o rs

several newcomers in each of the

By RICHARD F. MESSING*

portunity
market

chemical

analyzes

participation

for

that

is

expected to

in

a

grow

by about 67% — to 750 million
pounds — during the next five

industry's growth outlook, particularly in areas showing great¬
est promise, in terms of: markets using chemicals, finished
chemical products, basic building-bloc elements entering into
chemical manufacture, wider use of proprietary specialties, and
international developments. For the chemical industry in toto,
he shows 1948-1957 growth rate to have been almost twice as
large as all manufacturing. The writer envisages, for example,
for next five years these growth changes: 67% increase in
synthetic fibers, 250% in rocket fuels, 50% in agricultural
chemicals, 250% in peroxy compounds, 150% in titanium,
and twice as rapid growth in use of foreign chemicals than
here—*a major opportunity for those who can market abroad.

£

years.

Fuel

f

■

•

Products

■i.-V'

for

rockets, as a major
new
area
for
consumption
of
chemical materials, has been
given wide attention among in¬
vestment groups.
It is estimated
that the total annual expenditure

itself

of

number

which

have

tential

for

into

elements,
some
more interesting
others.

than

latter category

the

propellants is now about $100
million,
although
this includes
some relatively
prosaic materials
such as jet fuel and liquid oxygen,

subdivided

be

can

Included
are

a

of
po¬

in

the poly-

olefins, which now represent the
largest class of plastics materials.
The

has

consumer

become

.

Thursday, June 11, 1959

pliances, where they could

products will not necessarily par¬
allel the growth fields mentioned
above, although it is obvious that
many of the products (e.g., poly¬
mer materials, including the plas¬
tics, rubbers, and fibers) will fill
the requirements resulting from
the expected market growth. The
polymer industry, which has experienced about a threefold
growth over the last ten years,
now represents an annual market
of about $1.5 billion at the manu¬
facturers' level. The plastics field

promoting wider
adoption of the synthetics. With
a c

Chemical

both

The demands for new chemical

care, durability, and opportunities
for novel construction are among

the

in

Growth

Hotal fiber market, which approxi¬
mates six billion pounds. Ease of

..

ac¬

an

as

a

serve

structural member arid

medium/offers
opportunity.

insulating

a

further significant
•

Probably
the
most
dramatic
growth in the plastics field will
come
in the category known as
high-performance plastics, where
the concept of use will depend
more on premium properties than
on
substituting a low-cost in¬
ferior material.
The industry is
now

threshold

the

on

mercial realization

from

of

com¬

new

de¬

velopments which will allow sale
of

relatively

materials

low-cost

that

will

polymer

be

tougher,
easily fabricated, more
chemically
resistant,
and
gen¬
erally more serviceable than ma¬
terials such as glass, wood, and
more

die-cast

replace.
found

"G.E.'s

metals, which they will
Examples of this are
Du
Pont's
"Delrin,"
Lexan,"
and
Hercules

in

to some of the more quainted with the properties of
propellants, such as hydra¬ poly olefins through such products Powder's "Penton."
The peroxy chemicals—a class
zine, ammonium perchlorate, and as squeeze bottles, packaging film,
The general disillusionment mereial products, it is apparent the like. The general outlook is housewares, insulation for wire, whose use will be heavily influ¬
for continued growth in the use and extruded pipe.
The polyole- enced
by
development
in
the
among investors as to the outlook that we have yet to experience
for the chemical industry during the significant contribution which of both the liquid and solid types, fin field has been subject to rapid rocket and missile fields—are also
each fulfilling a particular need change, with innovations of high- finding growing commercial ap¬
last
year's
economic
recession, might result from research ac¬
in terms of availability for im¬ and low-density products,
poly¬ plications. In a rocket-fuel mix¬
and the pres¬
tivity.
mediate use, high-energy thrust, propylene, and other polyolefins ture, the peroxy compound fur¬
ent rapid pace
5 The growth potential of the
and other requirements. / Outer- in addition to polyethylene, and nishes the oxidizer which unites
of recovery
chemical industry can be char¬
the
fuel to
create
thrust
make it timely
acterized on three bases: growth space exploration apd the ulti¬ many other' modifications based with
mate requirement for commercial upon molecular weight, p£pcqss- energy.
to
examine^
In a typical solid-proin markets
using chemicals,
ability, polymer content, and the pellant
the growth
mixture,
peroxy
com¬
growth in finished chemical prod¬ space vehicles for both human
Recent growth history, as pounds may represent as much as
and cargo transportation, with a like.
outlook
for
ucts, and growth in
the basic
shown in Table II, indicates that 75-80% of the total charge; thus,
the industry,*
elements which enter into chemi¬ growth potential of perhaps 250%
over
the next five years, repre¬ an annual increment of increase their significance is paramount in
particularly
cal manufacture.
In many cases,
sent
interesting vistas for pro- of 150 million pounds has been a consideration of propellant con¬
those areas of
of course, these categories over¬
realized
over
the
last
several sumption. A 250% growth in the
greatest prom¬
lap, but it may be useful to dis-» pellant use. Opportunities for new
resins and metals to fulfill re¬ years; this does not seem unrea¬ next five years can be envisioned
ise.
Although
tinguish between them to aid in
sonable as a projection of future for this class of material.
the chemical
thinking of companies having a quirements for temperature re¬
sistance
and
stress
under
the growth in the industry.
As the name implies, organoThere
industry is
basic raw materials position,
conditions of use are also of great are
now
15
companies in the metallics are compounds formed
sensitive to
knowledge of processes, methods
of
many
of the
producing finished products, significance to the chemical field. field, all of whom are doing in¬ by the joining of an organic ma¬
Richard F. Messing
economic
and market coverage which gives
Agricultural chemicals — par¬ tensive work on new develop¬ terial with an inorganic or metal
ments and innovations.
them a preferred position.
compound.
Such combinations
pressures
Our ticularly the specialties which are
shown by
other cyclical indus¬ choices for some of the most in¬ not subject to competition as in¬
Epoxies are a product group have been the basis for the crea¬
tense as that among the standard whose rate of growth lias been tion of major industry segments,
tries,
the
long-term
trend
in teresting areas
included
under
three
classifications
are
growth is evident in the accom¬ these
disappointing
during such as tetraethyl lead and sili¬
products—have adequately dem¬ somewhat
onstrated their status as a major the last few years, and there is cones. The high reactivity of these
panying Chart. The FRB Index shown in Table I.
for chemical industry production,
area
of profitability to the pro¬ n o w
substantial
over-capacity materials is now being exploited
ducers during the past year. With built
in
Growth in Market Areas
using as a basis the classification
anticipation
of
wider to advantage in other areas, in¬
"Industrial Chemicals," shows an
losses from insects, weeds, animal adoption of the resins in major cluding special catalysts used for
Starting first with market areas
increase approximately twice that
disease, and soil fungus conditions uses such as adhesives, coatings, the manufacture of oriented poly¬
which .justify attention, packaging
of
all
manufacturing
activity.
still totaling about $13 billion an¬ and reinforcing resins. The out¬ mers of the low-pressure poly¬
has proven to be one of the more
During the
decade
1948- 1957,
nually, and with an expected re¬ standing physical characteristics ethylene and polyisoprene type.
dynamic areas of utilization of turn of
chemical output increased at an
$10-$20 for every $1 spent of chemical resistance and tough¬ The development of the boron
plastics
and
related
materials. on
annual rate of 7.4%,
a
control agent, the potential ness indicate that substantial spe¬ fuels industry has also been de¬
compared
Much of the potential growth in
with an average of 3.8% for all
of the field is still obvious.
Our cialty markets will be developed, pendent upon organometallic tech¬
packaging has already been
estimates indicate that only about however, and we anticipate that nology, since these products are
manufacturing.
achieved with the widespread use
20% of this market has been ex¬ there will be a rapid growth in alkyl boranes derived ultimately
One of the major forces behind
of self-service, not only in super¬
this growth—accounting for per¬
ploited thus far, although con¬ sales during the next few years, from ethylene and borax. The
markets, but also in dry-goods servatism
creation of new inorganic plastics
among potential users as characterized in Table II.
haps half of the total increase in and hardware stores. There still
will
and coatings with good tempera¬
probably
limit growth to
volume
is the development of
The
urethane resins are now
remains opportunity for substan¬
about
ture resistance offers one of the
50%
over
the next five
new
products via research and tial
reaching significant
commercial
growth in some of the newer
most
interesting
areas
for re¬
years.
development. With many of the
status in the form of the flexible
fields, including wider use
of
search in the chemical industry,
Growth in the electronics in¬ products
major companies in the chemical
competing
with
foam
polyethylene film in bread wrap
field now reporting up to oneThe atomic, electronic, and mis¬
dustry has been reflected in the rubber and also in rigid materials
and
also
in meat packaging
at
third of present sales
resulting the source. Per unit of
used as structural reinforcements. siles fields have placed unusual
coverage, number of requirements for spe¬
from new product developments
Development in this field has been demands on the metals industry}
polyethylene is now cheaper than cialized
chemical
industry ma¬
of the last ten years, it is ap¬
accelerated
through introduction with the result that intensive ef-*
cellophane, and our projections terials. Such
products as printed of new formulations based on in¬ fort is under way to develop new
parent that the industry's dedi¬ indicate that
poly ethylene's vol¬
cation of $550 million per year to
circuits, magnetic cores,
piezo¬ corporation of polyethers, which metals, alloys, and metal-ceramic
ume may double within the next
research is paying off. The con¬
tend
to
yield products
having combinations to meet the rigid
five-year period. Two other cate¬ electric crystals, and phosphors
trast between the effort in 1940
'requirements. ' Broadly
many of the same characteristics service
gories of interest in the packaging •have- all provided
new
oppor¬
and that of today< is-vbry strik¬
as
foam rubber,
but at a price the characteristics of extremely
field involve the use of rigid con¬
tunities for specialty chemical and
ing; in terms of the number of tainers fabricated from
that is lower per unit of cush¬ high purity (in order to provide
polysty¬
man-years
devoted
to
research
plastics manufacture. The volume ioning capability. This field could the corrosion resistance) and
rene for such products as
cheese,
and development,
today's effort ice
of such products at the manufac¬ easily yield growth of 4-5 times high-temperature
resistance are
cream, and disposable drink¬
is about two and one-half times
ing cups, and also the develop¬ turers' level is now estimated at within the next five years if the all-important. In the atomic field,
greater than that of 1940. When
zirconium (which has good cor¬
ment
of
postformed
containers $30 million, with the expectation present rapid pace of product de¬
one allows for the normal
rosion resistance, low density, and
lag in and
trays which will serve as of
conversion of such effort to coinsizable growth during the next velopment continues. Adoption of
good atomic properties) and be¬
rigid bases for fruits, vegetables,
rigid urethanes in cold-wall ap¬ ryllium
(which
offers
high,
five-year period.
and other supermarket
products.
*An address by
Mr. Messing before
the New York Society of Security Ana¬
Synthetic fibers have already
—
200
lysts, New York City.
cut into a significant part of the

addition

in

exotic

*

195634

—

TABLE I

Building Blocks

Products

Flourine
Boron

<

•' '

160

Acetylene

-

.

,

Packaging

Pure Metals and

j

-

/

Markets

Polymers
Peroxy Compounds
Organometallics

Bromine

Agricultural

Petrochemicals

Year

180

Selected Chemical Growth Areas

S

Fibers

1

'

ndustry^1

•

Rocket Fuels

Metal Chlorides

<u
-o

1*0
*

Chemicals

Electronics
-a

o

TABLE H

v_

a.

Production of Plastics Materials

All

Hanuf actyr

ing

to
a:

;

i

(millions of pounds)

2

t

,

[ 'iJ'i i~'t ,*

i

it

i.' > rt.

t

«".•!-» t v
Urethanes

> ,

i.poxies

<*

10

'

1

•

2

-

7

19
22

36

Performance

Polyolefin

2900

7

210

2900

10

402

3800

15

566

4100

40

12

20

708

4500

43

20

25

865

4700

100

110

150

1500

Estimate

~

,

•



I

,

-

\

Total

135

1958

•

J

/

5

0

•*.

:

High

1957—-

1963

Chemical

X

6600

}

19*7

-

19*8

1949

1 950

1 951

1952

195?

195*

1955

1 956

1 957

1 958

Volume

Number 5854

189

.

.

.

The Commercial and Financial Chronicle

strength and low conductivity de¬
spite its relatively high cost) seem
to have the most interesting po¬
tentials. In the electronics indus■

"

J

try

germanium

and

silicon

Calif. IBA

Group

(2641)

FRANCISCO, Calif.—The
becoming well established for use Eighth Annual Conference of the
diodes, and the industry has California Group, Investment
already seen the creation of $25 Bankers Association of
America,
million worth of new high-purity
will be held

in

this need.

In

refractory metals, there" are
several candidates, including
molybdenum, which now suffers
frpm the serious drawback of for¬
mation

of

though

research

volatile

a

on

oxide, al¬
coatings is

promising; chromium, which of¬
fers opportunity for a modest im¬
provement

over

the best available

alloys, but has the disadvantage
brittleness; columbium, which
has relatively poor oxidation re¬
sistance, but is favored by the
development
of
new
processes
that
might yield an improved
product; tantalum, a high-density
of

material

for

the

which

ore

sup¬

ply is poor; and tungsten, which
is dependent upon foreign ores, is

/s^yery dense, but has the best tem■perature-resistant

characteristics,

dn many of these cases, the metal
"chloride forms the most attractive

*

to

route

production

of

the

pure

metal; this, in turn, has led to
development of new metal chlo¬
ride
processes,
particularly for
;zirconium, boron, silicon," cftlumbium, tantalum, and titanium. The
latter

product,, incidentally, is also

expected to

come

Barbara

Bilt-

.

Santa

more,

1.;

Barbara, June
27-30, accord¬
ing to Alger
J.

-

Jacobs,

Chairman and
Vice

Presi¬

-

Tihl
The

dent, Crocker-

Anglo

Nat'I

Bank,

Mr. Jacobs
a

well-rounded

Growth

i

j; The

in

in Table I include those elements

having the characteristics of either
stability or reactivity, both
of
which suggest wider use. In most
cases,
they are still
relatively
unexplored frontiers, and consid¬
erable
long-range research will

,

be

required to convert these char¬

acteristics into commercial poten¬
tial.

The

such fields

delays experienced in
as agricultural chemi¬

cals,

metallic titanium, and epresins are suggestive of the
slippage which can occur between
oxy

the concept of use of a new ma¬
terial and the flow of profits re¬

sulting from its sales.
Other Trends
:

Other trends indicating particu¬

lar growth potential for companies
in the chemical industry include
the

following:

Witter
&
Co., Education
Committee; Ernest E. Blum,
Brush, Slocumb & Co., Inc., En¬
tertainment
Committee; Stanley
R.
Dickover,
Elworthy
&
Co.,
Legislation Committee; R. Russell

Postlethwaite, Irving Lundborg &
Co., Membership Committee;

'

the

wh°ie fruit,
some

led

Stockbridge,
Security
National
Bank, Municipal

First

Securities
The

Committee.

California

has
a
investment

Group

per

dollar

of

of

squeezes

experienced by companies in fields

cooperatives.
Growers
pooled

their

resources.

With
of

aid

the

chemists

ingredients,

at

which

prices

do

sales

and
not

repre¬

sentatives
the

of

(3) International developments,

particularly
technology
how in
in

to.
or

foreign

exploit

marketing
areas.

foreign chemicals

unique
know-

The growth

use

in foreign

canning

the

offers

a

United

States,

and

major opportunity to U. S.

in

overseas

markets,—




Canners'

veloped methods o£ cannmg appetizing orange, lemon, grapefnut,
Biape,
and other ju
.
piune,
research has

Somewhat later

t

*

Both
on

ceeded

research

of

are

appetizing products. Also, frozen
foods volume should make good
as

of the greater

result

a

them

to

compete
trend-

have been

cost

under

basis

line

contract

basis.

products

advanced-

an

to

all the
watch, keep an eye
on the
purely synthetic foods for
they may tafethe lead..,*-,
Rut),

of

.

sue-

.

d

nfixt

^

skillesd

fal.m3

and

alld

eannin„

jn

lants

10

rj.

unskmed
(he

Ubor

groves

wju

and

command

i Hold Summer Outing
•

m

Day

organized. Except lor a lew latge

ties business.

It

now

has

mem¬

a

bership of 300 and the membership
is close.

industry

food
.

.

poorly

are
-

j.

.

-p,

^

pIac(fas

operators, canning of fruit, vege-

table,
on

and fish

needs

concerned.

Other

leading

are

poultry,

producers

more

uniform,

juices,

n

One
frozen foods vol_

is

ume

fashion. Quality fruit

to be made

as

being carried income

is

in haphazard

Ir°fn are in ?Tutl»ok
Foo(,s Number

Vegetables
fer

„

"prepared"

foods,

seafoods, eggs, and meats. Frozen

Former

Inv. Securities Corp.
SUMMIT, N. J.—Investment Se¬
curities Corp. has been formed
with

offices

Avenue to

business.

at

382

engage

Officers

in

Springfield
a

are

securities
Carl

T.

Sheriff, Gene Biscailuz,
while processing and marketing poultry
and "prepared"
frozen Graves, President; Leonard R. Erwill act
operations could
profitably be foods have made impressive re- vin, Vice-President; and Herbert
as '"Sheriff of the Day." The Field
cent volume gains. The "prepared" O. Franke, Secretary.
Day activities call for golf tour¬ streamlined.
nament, putting contest, tennis,

will be honored guest and

horseshoes and darts.
to these Field

will

by

be

In addition

Day activities, there

swim and diving show
well-known stars.

a

many

II

trade is a

President Davids has appointed
following members to assist

the

him for the various events: Bruce

sign of good times

m

Wilcox, National Securities & Re¬

a

EvKv-

search

in Puerto Rico's

"•.v.v

If'"

progress

it v
■

t

area

Puerto Rico ranks seventh among customers

:

for

1

•

of Reynolds

Street,

!l

United States merchandise shipments
to Puerto Rico rose

a

with the United States reflects the

II

Puerto Rico has become a well-balanced,
,

Landry Forms

H

BOSTON, Mass.—Odee L. Lan¬
dry is conducting a securities bus¬
from

under
&

Co.

the

offices

firm

at

31

Milk

St.

of

Landry
formerly
of Perkins & Co.name

Mr. Landry was

Vice-President
Inc.

.

-

Sincere

,

.

.

Opens Branch

LAKELAND,
Co.

has

Fla.—Sincere &
opened a branch office

West Main St., under the
management of William G. Barth.
at

122

'

economy,

bonds of Puerto Ricp and its Authorities.
■

iness

"

highly

and a sound, inviting
area for capital. Experienced investors
may do well to consult their own bank or
security dealer regarding thq tax-exempt

productive

®K

■

Own Firm in Boston

rapid

expansion and growing diversity of the
Commonwealth's manufacturing industries.

*m

Co., 221
succeeding

millions in 1958!

This six-fold rise in Puerto Rico's trade

j.v.;/

&

from $100.5 millions in

1940 to $619.4

the late Wylie H. Arnold.

Odee L.

Venezuela,

Mexjco in the Western Hemisphere,
and only Great Britain, West Germany
and Japan in the rest of the world
surpass Puerto Rico in that respect.

f.vX$

Small has been appointed resident

Church

goods and services from the continental
United States. Only Canada,
and

III

CHARLOTTE, N. C.—Philip D.

South

off-shore outpost—smaller in
than any State except Rhode Island—

Our only eastern

(...

Appointed Manager

thus

.companies equipped to participate

enable

with truly synthetic products.

Roger W. Babson

all

countries may be about twice that
in

to

and

industry, plus

'

adequate profitability.

acreage needed to
them of adequate supplies

assure

Country Club. The Club is an or¬
ganization whose members
arc
engaged in the investment securi¬

permit

"

even

results

translated into more flavorful and

gains

vegetable

or

and

that depend upon the purchase of

important

products
wider acceptance

retail display cabinet space, and
industry appears to
refrigerated
storage
maintaining
its
relatively backroom
strong position. Aided by popula¬ space,-; ;;.
tion increases and higher personal
"Contract" Farming Will Increase
income, canners have made good
Farming is in the midst of a
postwar gains. During the next 10
years, I predict canners will have great change. Gradually, agricul¬
ture is being remade into a more
to devote more time and thought
vital part of our industrial econ¬
to
their
raw
material
sources.
Tighter control of plantings will omy. Fruit and vegetable produc¬
be a "must." In some cases, it will tion, canning, freezing, as well as
are
becoming
"big
be advantageous "for canners to marketing,
purchase outright the fruit groves business" on a huge assembly-

citrus

Friday, June 12, at the Oakmont;

manager

sales, but will avoid the

Canners?

win

the

research

for

All

Angeles Send Club

To Held Field

.undoubtedly mean

investment

more

for

as

need

canners.

DETROIT,
Mich. — The Bond
providing us with the
Wgher wa£es More mQney wm be Club of Detroit will hold its An¬
splendid frozen juice conce t a
.
needed
jor
containers
and
for nual Summer
Outing on Friday,
What the citrus producers have canning and
freezing machinery June 26, 1959, at the Essex Coun¬
accomplished by working together replacement, although I do not
try Club, Essex, Ontario, Canada,
with
the help
of chemists and n0w forsee any early switchover
The day will feature golfing,
industrialists
should
encourage t0 aluminum cans. However, food
dinner and prizes. The guest fee
other fruit and vegetable growers,
processors
are
becoming
more is $20.00. Those interested in at¬
LOS ANGELES, Calif. —Mark
Although canned and frozen fruits interested in synthetic foods and
Davids, Lester, Ryons & Co., Pres¬
tending should contact Richard C.
and vegetables have made great drinks, such as "Tang" put out by
ident of the Bond Club of Los
Spaulding, 1325 Penobscot Build¬
strides in winning public accept- General Foods
Angeles, has announced that the
ing, Detroit 26, Michigan.
Annual Field Day will be held ance, certain sectors of the over-

stand temporary pricing pressures.
This trend will

Ahead

will
-

the

canned-food

to

*

I

What's

to
are

Despite sharp increases in con- availability of mechanically re¬
sumption of frozen foods, the frigerated railroad cars and trucks,

formation

Corp.; Peter Eichler, Bateman, Eichler & Co.; Francis
Wheat; John Carter III, Vance,
Sanders & Co.; Robert Cathcart,
J.< A. Hogle & Co.; Paul Wagenseller; Francis McComb, Blyth &
Co., Inc.; Paul Pflueger; Frederick
Denison, Calvin Bullock, Ltd.; Bud
Jones; Charles Sill, Jr., William
Street Sales; T. Brook Townsend
/panies that have little or no tech- III, Wagenseller & Durst, Inc.;
r nical
or
merchandising support Vernon Smith, Dean Witter & Co.;
J
in their operation.
Bob Wilson, Hill Richards & Co.;
Donald
Wright, Paine, Webber,
■;
(2) Integration, both forward
and backward, which places an Jackson & Curtis, and Ed Adams.
; organization in a position to with¬
'

practi-

alert
than

Franklin

I

(1) Wider use of proprietary
specialties, that is, products iden¬
tified
by their function rather
i than by their chemical
composi¬
tion v (e.g.,1 corrosion
inhibitorsantistrip agents for asphalt, tex¬
tile softeners, emulsion breakers,
f
mold-release
agents,
and
bac¬
tericides).
In
such
cases,
the
marketing know-how and tech¬
nical V service
coverage
of
the
company can place it in a less
competitive position than ' com-

popular

more

.

Dean

Los

Building Blocks

basic building blocks listed

ago

necessity of discovering

costs

Alger J. Jacobs

is
planned featuring prominent na¬
tional speakers. Committee Chair¬
men
include Wendell W. Witter,
program

closer to real¬

the next five years.

years

-!?e

heavy
mar¬
keting
and
transportation

Francisco.

izing its often-forecasted poten¬
membership of
103
tial,
with
growth
from
about
banking and brokerage firms witli
10,000
to 25,000
tons
expected a total of 351 offices in the state.
over

as flavor and
improved upon.
Frozen food producers are more

even

be

San

said that

have

appearance are

frozen, synthetic and canned foods is eval¬
uated by Mr. Babson who advises, of all products to watch,
keeping an eye on the purely synthetic food. The investment
writer predicts canners may extend their operations vertically
I
to taking over the growing of
products they can in order to be
assured of supplies and to better compete with
synthetics.-

Less than 30

u

leisure time and thus will become

The outlook for

at the Santa

which

frozenr variety are
/ already
been
given11 certain preparatory opera¬
tions usually performed
by "the
housewife. • They give her more

By ROGER W. BABSON

.

silicon plants to supply

of

those

Canned,
Synthetic Foods

frozen and

SAN

the

foods

What's Ahead for

Annual Conference

are

21

:

i

M

■
"

GOVERNMENT
BANK

IS

Fiscal Agent for the
P.O. Box4591,
San Juan, Puerto

DEVELOPMENT
PUERTO RICO

FOR

Commonwealth of Puerto Rico
,

Rico

37Wall Street,
New York 5, N. Y.

22

The Commercial and Financial Chronicle

(2642)

that
to

London Stock Exchange
Balanced

liable

prices

it appears to

ences

is

there

why

boom

no

most

thing

T h e

Unem¬

Paul

Einzig

under the

be

under

monthly

v

2%

a

?

to

v

After

.

•

The

*

the

deflation,

recent

diverted

rather

in

an

the

But

and

tervenes

the

reverses

a

ten¬

investment

undertone is distinctly

The

timistic, but investors and
lators

not

have

the

their conviction.

They

afraid

are

man¬

services to small

businesses.

specu¬

of

closed-end, nondiversified

and management

principal objectives of the
corporation are to provide capital

and

foremost

them

amongst
There

Street.

is

is

vcrtible debentures

and

obtain

to

feeling certain tax benefits for shareholdequities into Government over here that prices over there ers based upon provisions recently
loans, the trend of investment are distinctly too high and that a adopted by Congress to encourage
Once more favors equities.
substantial downward adjustment investment of venture capital in
institutional

also

are

changes in favor of

rise. Prog¬

a

is made towards the populari¬

ress

zation

of

equities

investors.

This

small

among

tends

to

cause

a

gradual increase of demand from,
quarters
which
have
hitherto
barely touched equities.
Over

and

above

certain that in

inflation

ugly

will

a

all,

it

seems

matter of months

once

more

rear

its

head.

A resumption of the
where it was checked two

process
years

is

ago

later than
There

expected

Wall

in

has

the

revival

a

of

take-over

bids
during recent
months, and this adds yet another
influence favoring a rise.
Even
though these bids only affect di¬
rectly the equities of a few firms,
they indirectly influence the atti¬

tude

of

boards

of

directors

large number of firms.

in

a

The main

reason

why take-over bids stands
chance of succeeding is because
dividends are too low in relation
a

to
of

earnings and because the assets
most

firms

not

are

valued

adequately in balance sheets.
The
over

a

when

that

hap¬

pens it will provide a signal for
profit-taking also in London. Al¬
though genuine investors who are
only interested in yields are safe

small businesses.
Under these

fright given by recent take¬
of directors to

play for safety by remedying this
situation by increasing their divi¬
dends
and
by re-valuing their
Of

course

many

as

to

be

it

is

No

Need

There

to Follow Wall Street

is

should

basic

why
Exchange
slavishly the ups

no

reason

Stock

London

follow

and downs of Wall Street. Never¬

theless, the closing prices in Wall
Street
almost
invariably affect
next day's opening prices in Lon¬
don and continue to influence the

trend
to

during the day.
taken

tors in

increased

justifies
in

movements

After

decline

a

American
verted

in¬

by American opera¬

equities

thetic

It is true,

small number of leading

a

British

the

extent

some

terest

in

demand

from

including stock received through
conversion privileges.

sympa¬

London.

Wall

is

London

Street

usually di¬
equities to

Upon completion of the offering
there will be outstanding 1,833,889
shares of common stock of $1 par
value.
The management

decline

in

able

to

revalue

profits.

But

them

offset

they

a

do

realize that if, as a result of their
conservative

financiers
reserves

policies, adventurous

assumed

would

be

financing further
ations.

control,

the

plundered for

take-over oper¬

Many of them

are

inclined

to feel that in such situation




con¬

another'

markets

strictions

Charles

markets—

.

and

artificial

no

advantageous

re¬

domestic

to

but is

sumers,

con¬

to

com¬

necessary

over

is

a

tends to affect the prices of Amer¬

Vice-President

of

Electronics

is

Elec¬

Jacoby,

Graduate

the

director

and

director

a

Investment

Neil H.

ness

apparent difference in prospects—
it is undoubtedly there,
and it

of

$27,000,000." Richard T. Sil¬

of Cohu Electronics and

equities.

this

electronics.

President,

Chairman

verman, Executive Vice-President,

can

as

with

Salik,

a

Corp.

director, is Dean
School

of

Busi¬

Administration, University of
„

California
also

a

_

at

Los Angeles, and is
director of Electronics In-

vestment Corp. other directors inelude Dr. Joseph M. Pettit, Dean

Wall Street is

why

in

undertone

change
anced.

the

is

of

outlook.

reasons

optimistic
Stock

precariously

so

ing in the

of the

the

London

Another

uncertain

Geneva

one

spite

influence

NoltW Nirfiol
OlUng,
Pi

PENSACOLA, Fla. — Nolting,
bal¬ Nichol & O'Donnell, Inc. has been

work¬

formed with offices at 416 Brent
Annex to act

same

direction

international
A

talks

is

the

political

breakdown

of

the

is

be

fol¬

liable

to

O'Drrnn^Il

lNlcnol, U Uonnell

Ex¬

as

ties.

are

Officers

dealers in securi-

Carl W.

Nolting,
O'Donnell,
President, and

President;

Charles

Executive

Vice

-

R.

Bromfield B. Nichol and William
B.

Troendle, Vice-Presidents. All
lowed by a war scare. Most
peo¬ were
formerly
associated
with
ple consider this unlikely, but feel
Nolting, Nichol & Company.

in

East, butj

These, of
obvious

simple and
truths, and are

characteristics

of

a

Germany is fortunate—more forthan

tunate

having

countries —in

indigenous
oil.

industrialized

most

substantial

of coal and
Their full and efficient utiii-

zation

resources

will

be

it

required

to

meet

same

time

like most

many,

West

countries,

need for it. I sup¬
also be said that,'
will!
never arise, the
Free World will
undoubtedly insist there is one,
and too great a

must

it

and will vuuuuuuiunouu^oupcontinue to need lincreas-

me

trust the necessity

we

alternative
that

is

of

It

sources.

is

the

oil

from

task

of

other

When

and

its

own

speak of such alter-

we

it seems to me that free
must
not
only
guard

natives,
nations

against dangers from without, but

against danger of their own mak¬
ing.
In

every

country of the world,

decisions. are

^demanded

between two opposing schools of

bought as to the best

way_of or-

^Tprincipies

of sialism on the
hand, and of a free market
on

Often this

the other.

be need
certain

always

'

:

issue is by no means

black-and-white,

oil

the

to

survival.

wm

amounts

accept,

cannot

it

alternative

an

Ger¬

needs

one

no

the lo g
indispensable. There is too muc
oil for that—in too many places-—

economy

the

At

supplies,

oil

that

noting

?ouice of oil in

one

needs

energy

of

matter

worth

is

while

course, are

economic

Survival Comes First
this

On

pose

pete in foreign markets.

unu

E.

cooperate

to

in other oil-producing countries.}
Hopefully, these attitudes, this
willingness to devise new patterns
suited to present times, will be
matched by equally realistic poli-

way,

they have every

closely

tronics Investment Corp., a diver¬
sified mutual fund with assets of

of

Unreasonable

been

seeking .r

earnestly

only in the Middle

not

way

are} placed in the

Germany's future

has

identified
President and

corresponding class of Ameri¬

attitude may be—having regard to
the difference in yields and the

Corp.

ways

free"to com*pUete, ZrprddwerTare of g°vernmentscies on the part

'

Capital

are
are

additional

furthering economic development,

of saying
higher levels of consumption—re¬
quires the production of an abun¬
dance of goods which masses of
people can afford to buy. As long

of Electronics

conserva¬

expedient to

'they
that'they

ample

tax

are

when

that

nation

provisions, free market economy.
Unfortumay
offset losses nately, we all know that a free
on
the sale of his stock against market
economy
is
too
often
ordinary income rather than honored in principle but not in
in
sticking to their holdings, a against capital gains. Small busipractice for a good many reasons
good many would like to get out ness investment companies are —and not often for
many
good
and get in again at a lower level; also allowed to take an
ordinary- reasons!
This factor is believed to be in¬ loss
deduction, rather than a capisince ample energy supplies are
comparably more important than tal-loss deduction, on losses susessential to economic growth, West.
professional speculation proper.
lained on convertible debentures,
new

,

so

is

fundamental

of the School of
Engineering and
ican favorites among British Professor
of Electrical Engineernaturally reluctant equities. Since they are
important rng, Stanford
to
University;"?Donald
go
too
far, since they are equities, their
tendency is liable C. Duncan, of Beckman
Industries,
anxious to plough back into their
to set the tone of the rest of the
Inc. and L. «LRice, Jr., Vice-Presfirm a
large proportion of the markets.
;
ldent of the First National Trust
earnings, and they are equally
This
feeling that anything and Savings Bank of San Diego. »anxious to retain in hand a re¬
might happen at any moment in
serve
I-*
' 7
by undervaluing their assets

assets.

tive boards

a

has

it

shareholder

a

the

bid activities is likely to in¬

duce many boards

And

overdue.

the

autumn.

been

is

much

not

when

incentive to in¬
that international influences might to selected small electronics com
crease
efficiency and to lower
more
than
offset the favorable Panies with growth potential, pri-; costs in order to
get their share,
influence of domestic factors. First marily through purchase of con- 0f the business.
This is not only

from

There

off

supplies of low-cost energy.

for

The

(

better

The creation of mass

agement investment company and
will provide
Investment capital

op¬

courage

js

which

,

.

The corporation will operate as

news

foltow^ that

total cost, it

ment Act of 1958.

significance

some

^investment ^company licensed

imder the Small Business Invest¬

of

excess

offering marks the first na-7

tionwide distribution of shares of

to

goods dency.

consumer

capital goods.
Most profits
increasing, and so are a great
many dividends.
Even after the
rise
in
equities during
recent
months, yields are still some V/2
to 2% above the yields on corre¬
sponding classes of America eq¬
are

which

'

;

•*.

of the
pointing in
opposite direction usually in¬

news.

and

scare

sufficient

been

intrinsic

the

next

published.

are

has

extent

an

expected

distinct increase in the

demand for both

uities.

of

tip the balance one way or other,

the

when

figures

There is

of the prospects

face

whole

a

half million mark and is
to

i

CIama OffQrc
..There--is a close relationship tries and of the economic real-.
ndjIIVIIf wlUIIC^VIIW^t ''between energy, economic growth, ities of the oil industry. One does
Ql
■
f |"|
and the principles of-a free econ- not underestimate the political
WlOCK OT tlCCirOfllCS, ^ omy. Furthermore, these relation- uncertainties in this area. Yet one^
A
"I
1 A
"
ships cannot, be confined within can believe that new nations will
udDltdl IfOrnOrariOlt
.^national'boundaries—they operate mature under the seasoning of j.

individual firms or the market as

ployment is
declining
sharply, it is
now

no one source

Exchange.

Stock

favorable
it.

and

are enormous

is indispensable.

run

-internationally.
experience.
This process will be (
Hayden, Stone,&. Co. heads ,a
Indeed it may
-Economic growth*.presumes an speeded
by a more widespread
be said that during recent months group of investment firms ;Wnicivincreasing production of goods ^rid^understfiiidins in. the West of til©.
^ offered 1,8 90,000
their trend has been balanced on
shares^ services: And since the cost of en- legitimate aspirations and prob-«
a razor's edge.
Any piece of news, ot Electronics Capital Corp. corn— gj-gy required to produce goods is lems of these countries. It is cer— |
mon stock, priced at $10 per share,,
or anticipation of news, affecting
important
element
in
their tainly true of the oil companies--j

distinct

cyclical factor
for

long

liavfian

Razor's Edge

a

demand, ooth cyclical
institutional, equities display
hesitant trend on the London

a

upward move-

is

011

and

favor

ment,

if

doning their caution,"

increased

seems

a

in

Yet

every¬

to be in

even

industry's future needs

;

Stock Prices

Al¬

change.

and

corner,

not dare to back their
convictions in a general way, they
go
for. equities of ; firms' whose
progress seems to justify
aban¬

give the public better idea of the
true value of/the equity capital.

Ex¬

Stock

of

7

on

the

(New Jersey)

Company

In pointing this out, Mr. Scott is confident that" widespread search for oil will achieve, for the efforts expended, the same results as in the
past.
In addition, he believes, stability in Middle East oil
supplies can be expected as that area matures under the sea¬
soning of experience. Noting that economic and political freedom /are indivisible, he decries resort to Government when
economic difficulties arise and hopes European integration will
;:b
yf:V:^;>.;not lead to departure from free market economy.

they do

and also re¬
assets that would

of

The oil

of oil in the

like to believe that a boom is just
around

increases,

valuations

London

the

dividend

the

of the extent

excess

Oil

New York City

are

concerned

equities

Standard
■

justified
by the favorable news.
This is
because investors and speculators

we

be perplexing

of the

in

said to hover over Wall Street and the inter¬
national political outlook.

Eng.—If

By WILLIAM R. STOTT*

Director,

pay¬

higher profits, etc.,
these
days ; to affect

ments,

view ihe- servatism is not in the best inter¬
British economic situation in iso¬
est of the firm.
We are likely to
number of
lation from
international influ¬ witness therefore a
LONDON.

bonus

increases,

Dividend

balance to the feeling

stock market's razor-edged precarious
of uncertainty

good

rumor

even

or

news,

Perplexed that there is no London Stock Exchange boom, Dr.
Einzig outlines the bullish-price factors and opines that firms
fearing "take-over bid activities" plan to increase their divi¬
dends and re-value their assets.
He attributes the London

Needs and the Middle East

Exchange
any

upon

of good
affecting individual firms.

news,

By PAUL EINZIG

Tomorrow's Enormous Oil

Stock

seizes

1959

Optimists

Are

London

The

eagerly

Thursday, June 11,

.

tell, and prefer

the safe side.

on

Investors

Razor's Edge

on a

one never can

be

.

.

for there will
for government
areas whel-e only

a
government can act as umpire,
industry operating international¬
balance
wheel,
or " policeman.
ly to keep this oil flowing.
Again, in times of economic dis?

(

|

ruption—as for example during,
}
Enormous Future Oil Needs
the period of postwar reconstruct ;
V The determination and ability tion in Europe —it may become /
of the industry to meet short-term necessary for governments to take
interruptions
of
supply
at
the various emergency measures in,
source
were
demonstrated during the economic field.
In the free J
the Suez crisis.For the longer countries of the world, and par- j
term, the search for and develop- ticularly in the most advanced
ment of oil reserves goes on in
countries, the growing complex-;
The esr ities of economic life will continue I
many parts of the world.
timated future requirements
for to create areas in which governpetroleum are so enormous that ments and private enterprise will
the

present condition
of
world
oversupply in relation to demand

overlap.
But

.1

f

.

.

is, that through
understanding
of
th6

the danger

does not significantly diminish the

jack

vigor

dynamics of a free market econ-

with

prise,

-

which "private

represented

as

enter-

of

by" dozens

omy
Gf its requirements,' of its
0f companies, presses; its ^search,
unequalled efficiency, and of its
One may confidently expect that inseparable connection with polite

this widespread effort in Africa,
the

Far

-

East, in" the Western
Hemisphere, and in Europe will
bear fruit, as it has in the past,

-

The

stability

should

also

growing
East

*From

finery

of

of

oil

of

by

in the Middle

interdependence of
and consuming coun¬

talk

the

Esso

by Mr. Stott

dedication

A. G.,

of

on

the

permit the
market eeo-

weakened and grad*

oc¬

Decries
When

for their solution.
sures

Germany,

quite

1

Government

economic

Aid

problems

.

>

be¬

difficult, there is often a
tendency to turn to government^
come

Rer

Cologne

Cologne,

nomics to be

free

a

the

a

of

principles

supplies ually destroyed.

enhanced

awareness

of

producing

casion

be

intellectual, artistic and re-

ical

ligious liberty, we may

are

-

Political pres*-

exerted by groups who,

understandably,

see

their

Volume

189

Number

5854

.

The Commercial and

.

.

short-term interest, but who

own

country as a whole.
This is
not only as within
countries,

true

but

between

as

would

be

countries;

less

these

arise

circumstances,

such

industry
arbitrary

artificial
and

there

restraints

trade

The

as

quotas,
exchange rates, price
controls, discriminatory taxation,
and high tariff barriers.
These

.

are

all,

essentially,

de¬

availability of abun-

will be

story of privation and toil, the
possibility of an unprecedented •"

/When

artificial

erected

to

the

barriers

movement

"

en¬

ogy,

goods, capital and technol¬
tensions
develop, stability
peace are disturbed, and con¬

ditions

created

are

exploited

by

the

which

enemies

our

the

of

'}

'

/

'.

'

:

'

and

•

•

European

j

Integration

/

:

the

as

recent
more

Common
to

moves

make

currencies

aware

of

attend

progress

the

integration
liberal

difficulties
toward

and

trade

the present

the

Community..

of

process

"Booming business has
ules

of

free

a

economy, conceived in
the public welfare and
national responsibility.

only in terms of
people

the

potentials

a

that

over

modern

nomic organization

on

to

is

not

maintained

sponsible

between

independence

so

the

dynamics

progress

of

eco¬

be

can

destroyed.
As I observed
earlier, economic

freedom and political freedom

are

indivisible. / Yet,"
paradoxically,
both
die
when
economic
and
political power are vested in state
institutions.'
Liberty
flourishes
<

best

<

when

widely

economic

distributed

>

direction

and

growth

of

:

proval, the most efficient and
ful

l

elements

ehcouraged.
merous

in

points

decision,

a

the

.strong

laid for true

apuse¬

are

initiative

of

are

economy

When there

are
nu¬

.

and

foundation'■ is

democracy.,

'

/'•'-./•
trend

the

opening of - a
sales
head¬
quarters in the Wachovia Bank

Building. The newoffice is

!." /

of

the

Burlington

branch of the Wachovia Bank and
Trust

we

Otto Klemke Opens

employment

.

-

It

•

.

not

does

Co.

is

as

business
Journal

from

J.—Lubart
a

offices

Square

H. Lubart is

a

securities

Building.
principal.




in

the

Arnold

continued

the

re¬

act

steel
a
drag

as

in

rise

nonfarna

Unemployment on a seaadjusted basis still

amounts to 5.8% of the total labor

the

on

which
time in

as

the

on

force, instead of the 4.0%

economy.

/for known production schedules.

;

'

.

■

'.

/

broad

a

of

increase in many

seg¬

encouraging is the rising
expenditures for

dra¬

earlier

The

cars—have

rising

are

or

leveled

either

more

slowly.

-*

be computed/ but

tors cannot yet

limited

in

evidence

an

average

A

.*

•

May:
'

/

,

'

'

■

-

/•'

.

:V

••./ '

•/'
Production Materials/__
•>

/

•

25

'

recent

years

is

quarter for the year.

moderately rising trend in
sales during 1959
was

tion.

into

the

Current

6-million

a

for

the

do not call for

revision of this total.
A

6-million

sales

GO Day3

>'

•'There

are

Specific

would

year

nearly

the

11

25

19

5

2

10

23

25

21

fbi*

Toll Highway

according
President.

been

has

34

26

8

18

11

last three years.

SALE

1

9

9

24

9

49;

122-Bound Volumes of the

COMMERCIAL & FINANCIAL CHRONICLE
From

month,

as

might
Jan.

"On the down side are: Steel scrap, fuel oil and phenol.

(galvanized,

plates, sheets, mill

coils, specialty items), maleic anhydride and phthetic anhydride."

1, 1929-Dec. 31, 1957

Available immediately in N. Y.
'

Write

Edwin L.

or

Phone

—

to

Director ol

the Illinois Stato
Commission for tho

N. J.

Commodity Changes

Steel

Reed

'

Copper, lead, valves, paper and cartons,

are:

Chicago,

Chester W. Laing,

i

49

•.

•

lumber, plywoods, rubber, electrical equipment and motors,
acetylene, oxygen, leather belting and tungsten.

supply

in

D.,

'

sugar,

short

Ph.

FOR

49

7

ing reported. Steel items continue to be the only ones where short-;
being reported by many.

"In

111. — Richard W.
has become asso¬
ciated with John Nuveen & Co.,
135 South La Salle Street, as a
member of its Research Depart¬
Reed,

11

be'expected with the generally enthusiastic business upturn be¬

are:

Of John Nuveen & Co.
CHICAGO,

Research
address by Mr.> Hitchings
before the Maryland Bankers Association
an

./

Dr. Reed Joins Staff

25%

for

depends.

to 1 Yr.

35

increases than decreases this

more

Days

26

•

•

90

49

April:

~

power

i':

■

Production Materials-! L
MRO Supplies
//___
Capital Expenditures

by increased efficiency
production, or productivity as
it is commonly called. Until these
costs can be held steady, the econ¬
omy as a whole faces the danger
of long-term inflation and/or re¬
tarded growth in markets upon
which
employment and buying
of

G Mos.

■'

*'

absorbed

Dr.

*From

is serious in its

primary element being wages
Pay rates, including

ment

make-up

years

fringe benefits, have moved ahead
much more rapidly than could be

represent a return to the 1956-57
retail market, which we consider
to have been about normal. Some

,

services.

Upward pressures have come
largely from the cost side, with

assump¬

prospects

general economy

and

Eeporting-

"

30 Bays

''

3
•

i-

i','"" '

-.

f'

MRO

Supplies
Capital Expenditures

Mouth

■

J

'

period of

a

/new-car

built

commodities

and salaries.

Precise seasonal fac¬

million rate.

price

upward drift in the
latter group has been in evidence
since
1951,
despite
absence of
usual inflationary pressures from
general excess
money
demand.
The increment in any single year
is not serious, but the continued
accumulation year after year for

the

New-car
buying in the first
quarter has been in line with our
budget for a 6-million year, in¬
cluding imports. Without adjust¬
ment for seasonal variation, the
actual volume was at about a 5%

Convention, Atlantic City,
-Per Cent

/

impact on the economy.

off

•

New-Car Buying

gradual indeed.

very

same

An inexorable

plant and equipment from
sharply reduced levels reached

up

appears

at 'the

Over-all

the economy.

indicates that the first quarter

IV

1957.

mid-1958.

of

part of buyers brought about

Hand to

prevailed

upsurges—such as residen¬
tial construction, Federal Govern¬
ment spending, change in business
inventories, and consumer buying

lower.

caught many of them with high
willing to commit-beyond their requirements

are

"On the up side

Opens

CITY, N.
engaging in

The

occur.

power

profits prices.
production sonlly

on

also

ages are

JERSEY

Hitchings

matic

Buying Policy

conservatism

reflects the

•

LUSK, Wyo.—Otto H. Klemke
is conducting an investment busi¬
ness
from offices here.

&

P.

the

report another jump in employment figures.

"The. lengthening of lead time

/

Company.

Lubart Co.

Geo.

if

in

Employment

number reporting

•

super¬

vised by Claude V.
Long, who re¬
tired recently from his position as

Vice-President

satisfactory
recovery
to
production and buy¬
is marred only by the
failure of some people1 to share
adequately in this total and by
ing

hew

inventories

increased

&

Co., members of the New York
Stock
Exchange, has announced

last year.

The

trend in business

report prices

Inventories

-

toward

inventories.., Few

BURLINGTON, N. C.-^Reynolds

as

Marring Factor

date in total

.by last year's recession, which

New Reynolds Branch
,

strike

ments

this month (41%) ex¬
ceeds by two percentage points the highest percent figure report
in the boom period of 1955.
Not since the Korean War build-up
have so many reported improvement in their employment situation.
Only 7% say their May employment figures are worse. The con¬
census is fairly general that renewed business
confidence, backed
by firm production schedules, has resulted in this willingness to
add people to payrolls.
\
/
*

the

economy.
When
producers
free to compete for customer

in

even

Most

The

free

occurred

indexes
have
declining
farm and food prices have offset
being pulled upward dramatically
further ' increases in nonagriculby any other single factor. There

Commodity Prices

"Again in May,
a

same

One

Aside from the inventory build¬

steel strike

-

choice, their decisions determine
the

a

is' sepa¬

have

consumers

a

"Industrial

rate from the state power.

When

decline

a

tural

is

power'

and

and

about the

lated drop in payrolls and

continues, though
largely sparked by the steel situation.
However, this month in¬
creased production and more instances of "late deliveries" have
resulted in a fewer number, 39%, reporting their inventories up
in May compared with April;
There are 11% who report their
inventories lower, with the balance— 50% — maintaining last
month's levels.
With the exception of steel, buyers' comments
are to the effect that they are holding inventories in line with their
production requirements. It is also interesting to note that while
many are increasing stocks because of concern about shortages
resulting from strikes, only a few are stockpiling solely because
they fear higher prices.
/

economic sector and highmindedin the sector of government
nomic

undoubtedly ex¬
trucks sold in

is

"The

ness

authority,

1

consumption
rates

the horizon.

on

•

the

equal

The full-

been stable only because

68% the same, and only 2%

re¬

a

in

higher

commodity prices have been relatively stable for
the past several months due to keen competition for available busi¬
ness
and" ample supplies of most commodities.
Now, however,
prices are firming and Purchasing Executives are finding it harder
to resist price increases.
1'his month, 30% report prices higher,

eco¬

levels.

900,000
modest

ing of steel, however, the current
economic
expansion is soundly
based.
The economy is not now

-

coordination,
to
Thus, if a balance

central control.

the
A

will

total

ceed

total

'•

today's world contain
tendency to go from voluntary

association,

period in 1956.

same

year -

current

*

essential in
a

to

does seem to be the major dark
Many of our members point out that their
optimistic predictions would stand revision if we were to have a
long interruption in steel production.
/
'

the

the scale

the

close

will

cloud

technology

.become meaningful.
Movements toward rational

new-truck

first half of 1959 is likely to

third

dependent

"The threat of

of

inter¬

For it is
better life for

world
of

market

of

the

1956-57

sharp drop in 1958.
Exports are likely to add at least
175,000 to the domestic total, or

arop

quarter

continuing to hold the line

are

business

general
to

Retail volume in the U. S. for the

in 1957

the

more

But, buyers

in

boosted

back

production

favorably affected production sched¬
difficult to maintain proper raw

so

e e

also

by orders on the books.
This, plus keen competition, has gone a
long way toward keeping some reasonable control in our fight
against runaway inflation.

de¬

terms

becoming

has

market

forward commitments stating that, aside from steel items, they
will not make any speculative purchases beyond those called for

the difficulties will
not lead to any departure from the
of

is

Recovery

the

'

..

t
against
possible

strike. S t

on

velopments,

fundamentals

it

for

•

1956.

will

pressures

in

occur
-

e c

ward commitments.

hope

these

that

-

pro-

material inventories and still display reasonable prudence in for¬

beyond

Economic

only

can

.--.h* ^'Commodity prices are firming, with
prices getting more difficult to contain.

which

extension

of the

We

are

t
a

■

.

may

like¬

ly beyond 1959.

at¬

tempt to

post-Korean War high, with 60% reporting improvement,
reductions.
New orders continue to be booked in
■

off

quarter.

surners

"Employment too, shows substantial gains/with more of our
telling of additions to their companies' payrolls than at
time since 1951.
■■'-/•

any

economic

principles

area

that, in the

We

\

members

Market and

freely convertible.

pessi¬

are

below-normal year in 1958 is

Activity in the
steel industry
is currently
a b n
ormaily
high as; con-

only 5.%

month, and only 7% less.,/'-/ /

Atlan¬
tic, we watch with sympathy and
interest such developments in Eu¬

rope

leveling

substantial volume, with 53% receiving more new orders than last

/

On the other side of the

//

new

a

Free World.
*

see

"There is no doubt that business, as of now, is good.
All of
.criteria point to near-boom conditions.
Production soared to

be

can

1

//

expansion
buying rate has been

retarded growth.

or

Continued expansion in the to¬

third

better than the second half of 1958; and, again only 3%
mistic enough to think it will be worse. '

current economic

new-car

tal economy is likely for the rest
of this year, although a
temporary

quar¬

3%

inflation

*'•

f

•

even more rosy.
In
looking at the last half of l959/ o8% "see better business than in
the first half of 1959, while 17% look for a downturn.
Again, the
great majority—85%—believe the second half of 1959 will be

ergy,
and

overwhelming 85% predict that this third

notes

year.
Mr. Hitchings finds
encouraging the rise in plant-equipment expenditures but is
doleful about the tendency of wages to exceed
productivity.
Unless costs level off, he contends, then we face
persistent

////"Predictions for the/fourth quarter/are

are

of

An

worse.

ter will be better than the similar period in 1958 and
only
it as poorer.^'? Wvv #***'•• 1
>'

soundly based and

fulfilling expectations of 6-million

as

that some of the' current good business might only be
borrowing from the coming/third and fourth quarters. However,
in response to our special/.questioh; 42% now believe the third
quarter this year will be better .than the second, and 29% think it

energy brings within sight,
the first time, in man's
long

>

is

June

for the decision

Company, Dearborn, Mich.

Automotive economist believes the

thought

dant

flow of goods and services.;

Ford Motor

to whether there will be a steel strike or
not, business continues to boom.. Fear concerning a third quarter
slump is disappearing."' Earlier < this' year, many of our members
near

vices of scarcity.
They contradict
the realities of
today's civilization
in which the
for

By G. P. IIITCHINGS*

Manager, Economic Analysis Department

report of the National Association of Purchasing
Agents Business Survey Committee states that, "as the time draws

on

23

Current Business Outlook

Disappearing fear of a third quarter slump and rosy predictions
regarding the fourth quarter support purchasing agents' find¬
ings that "all of our criteria point to near-boom conditions."

I

did not say that
my own country
is no exception.
In

Purchasing

Agents Report

I

and
honest if

than

(2643)

Business Conlinues to Boom,

overlook the long-term interest of

the

Financial Chronicle

C.

REctor 2-9570

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

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MATURIES

RATES, YOPIREICRDESS ibnteaordese)

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Corn

Chemical Eastman

The




Paine,

&bHorn iower D&do ge &tHu on Schoelkopf, BuCotlirn& Incorpated & Boatmen's Ha&upt Smithers
Clark,

F.
E.

Stone

The

S.
F.

Ira

L.
I.

Chas.

.

The

J.S.

J.

of

First Mercantile
The

^

C
(&o. &gASteerne, Slocumb
Rippel

Brush,

Webster
A.

Frantz

7.7 "'•
J

,

-

:

*j

w
•

.7-

»

^1.
r

•>

Townsend,

"'*•.,. '. bttohreneolasdsing
1'; '•>_
''■-•. -•
-,
Meomph•fis
furnoished CSatlaifoe■rn.,o,f•iT-r*
*B.D..adClJCW.N&Ceow &eiog.od Colerpvaatinn &CMcAorth.u TChoird CInaloc.s, Naationkl •,,. DBNaatilontkasl /-■,.The SLeu:palceh, I&Cnoc., R&CDouogh.erty &CHutchoinso. *'••' ICC&noomcchpraa.ny, LWoamtbnkairdds,
*nBAamekreicras 7'• HCR&aiporlie.s.y' , BExcahngke &USDecniuliroiotns, BNPhailatidonepkhila C&JWa;ucekrbstoisenr, WWeerthkims &CDiock. Company PH&oumteorny, IFran.cis , TYoaunygbloerr. BNationkl CCH&irsooeh.. S&Cpenoc.r Co.
1»

bweil

>-7

C&stSeohoun
In'corpated

Winsiow,

Milburn, Stubbs,
It,

195

June

'• I.'

"'f<r'i, n-77:.

I.

7

•> 7
;•

The Commercial and Financial Chronicle

(2646)

26

and real estate

Monetary Stability—A Prime
Condition of Economic Expansion

if
if

There is

the

comment add: "and in the short run as well"
"Monethan boom anH bust exnansion

tary Stability, Prime Condition of
Economic Expansion" adopted by
the .Council of the I.C.C.

tion,
of

statement

urges

sions

i*.

recessions

short

and
and

fast

I wonder whether it is not

over-ambitious.

l lV

,

out

can

10 increase einciency ana
cost all 'round.

these

apprehensions

that only a

leauce

jevej

our

ii!||!

Safeguard Against Inflation
The statement ends by

once again, as the I.C.C. has
done so often in the past, freer

the

#\AA

1

-

-

The

inclusive.

bonds

reof-

were

1

..

-

•'

c.

turity.-

Ibfioi3*!? I ?r convertibility. Associates in the group include:
£ 1wLi
and fldl convertibility Chemical Corn Exchange Hardly
^
Yi
i
iC0?r?u' desirabie*in them- Manufacturers Trust Co,; Lehman•
/ ^ +S'- U the? are also-m'most Brothers; Blyth & Co.,-Inc.; La-;
m

Barr Brothers.-

price

or

more

such

a

per

dire

inflation
the

nn

consequences,

of,

say,

nfber

2 or 3%

^nd

is

quantity of money and credit. This
year,

a

said

to

J.

admonished

are

prevent

au¬

not

little inflation

a

does

creeping

not

and at

this

beyond

go

pace.

view

stressed
The

to

me

than

very

statement

be

ever.

a

right,

the

Committee

want

not

to

of

beginning to feel the. spur, of for¬

Those who ask for more,

Co.

eign

that is

4-LA.

AVTAVt

rVMA

A! Ant

Now even the greatest

economic power, the

goal of price stability.

United States,

This is

competition.

a

B
tectionist

,

_

very

1

.

1

,

Hallgarten & Co.;

Inc.;

"Co.;
&-rn-

Noyes
Nove?

Hemphill,
Hemnhill

1°. " vw

all^elnore^^pTrtanTthaTDrn3

i^n>fTmdnd aJ^Wly £al1"
pnce
trend-stable money

monetary policy
as one that seeks to keep
price level, either consumer
prices or wholesale prices, con-

Bank; :

Savings

and

Trust

which for many years seemed to
be immune to that limitation, is

away

be satisfied with the more modest

noninflationary

ris~

Equitable Securities Corp.; Drexel.
TVT-ti
& Co.; The Philadelphia National
Bank; Hornblower & Weeks; Carl
M. T,oeb, Rhoades & Co.; Laden-burg, Thalmann & Co.; Blair &

TVT

phrased the question
the answer which I
-personally favor. I think we should

a

ot payments and, to endanger
value of. their

international

currency.

<u

T

The way I
wa„

definitely

conceive

the

declining price level?

gives

from

refrains

ance

they should ask lor more, i.e., for

but

giving a formal definition of in¬
flation.
But if I understand
it
does

seems

more

to

requires

to

the same time to see to it that in¬

flation

may sound tdte and trivial,

' unfortunately

quite safe and the monetary
thorities

he

The'
i hp

Mar™ust Ca of WesternPaine,':
Moseley & Co.; New'

York; F. S.
Webber. Jackson & Curtis; Schoellkopf, Hutton & Pomeroy, Inc.,*'
than
stable
prices
and
rising
would not be a serious
reduction .in trade
barriers, be
Swiss. American Corp.; B. J. Van
money wages—may become a litpressed
The LC<C. ; bas always
H
dun^ a
g pfrJodof j stant over time. It seems to advowniinp
in
nrppnt
thp
Ingen & "Co. Inc.;- Wertheim &
stability or after years of falling cate a more
exacting definition of
' been in the forefront-of-.that bat- Coi; Bache & Co.;
>prices. But to assume that a creep
—„
noninflation, namely, <. policy ,wo
a
'«e and is more than ey^astined
Baxter & Co.; A. G. Becker &
imciications of the policy of
Baxter
It

unreahstic.

true that

is

a

price

merely

nse

of

for

years'"especially ifS it "i? an- onnonev^andcraJit or^rathertoe

inevitable
can

5 % for a year or

two
matter, if

even

and

remain for

to

continue,
long at the creep¬
sure

ing

pace, seems to me very naive
to put it mildly. It surely would
tend to accelerate when more and
more

^of^tunesmonetary
velocity
circulation, i.e., total

.

tered

that"

in some sense ap¬
stable,
presumably
the aggregate but per head

of the population
i

lll thTw
type

I call this

nfnnlirv

of policy, whirh
which

First, w ... not forget - we
let us
that we
speak of the price level. It is not
the job of monetary and credit

Pfi
prices.

can

inflation

from

enterprise economy, should be left
alone to

go up or down in response

"sometimes'' rall7d^a"nolicv'of ?AU"e
YP orao^n 111 ^spunse
a policy of to market
* sometimes called tto m.arket. forces of supply, defo:'ce?
?upplY- deT
because

unde?

that

into

pri?e stqblllty' because under that

inflation

in a progressive economy

degenerating

i fTntt.Vi/ r galloping
trotting or trafl AniA^

inf 1

a

ptfnn system

the price level would have to fall

fullj^agree "buU submitlhat this Sradually

i^ies the™ointf

comphdely
Once
a creeping inflation tends to turn

technological change, and

Consider some implications

so on

of that principle,

Economic progress is always uneven
some industries are able to

over the long pull when chaik

up roore rapid technological
adva"ces than others.. Some are

the

be

held

III
in

III

.

*4V.1W

AAA

fight. for ..-fyrther

......

o

,

-r

1;„.

/"«

It

can

discharge .this duty,

'

Tnn

O

TT.11

»

.

Bank

•

and

Trust-Co.; Gregory &-Sons; E.

F.

&
the pressure groups
which lobby for tariffs, and. import

pressure upon

Corp.;
First National Bank
x

-s
American. Securities

E.Mi.'t'jb

Co

!

iL?.» DallasL Hirsch. & Co.; ^. A.:
for resolutions. urging, in-

voting
Hogle!-& Co.; Laurence M. Marks
ternational cooperation and lib-.i& Co.-Rauscher, Pierce & Co.,
j t
d
policies
ibternafional inc~Trust"Co7of~Georgia; Weedon
r j trade polici-es at international ?L - Trust Co of Georgia; Weedon"
eatherinas.
gatherings

Jr:

t
^

gat

-

--

& Co

'

--

•

Wall Street Hen

Chas.^E.

w.i.nld
Weigold

L. A.:Weston Joins
;

Named byjl.

and

Inc

& Co. Inc.
& Co. Inc., and

Y. Fund

,

•

Talmage Wilclier, Inc.;
Wilcher,

Tad

President

of

Joseph H. King, partner in East-. Talmage
Wilcher. - Incorporated,
man
Dillon, Union Securities & Harvey. Building, has announced
Co., New York City,-has-accepted; that- Leonard A. Weston, former
,

capital> mechanization and auto-

tomation'' whU^othe^are'not If!

as'kforhigh
increase nation, output per head rides, or under t h e s e circumstances, the
ilTanflclpation of ri^ng prices and Srf0Tdf0ar'^
P"Ce leYfhis nT rapidly advancinvestor^
duction tor m a n y commoaitiess'eUidimmoc'^^to remain stable, the
pnces of the
unions

task.

WdmdUal

Individual prices, in a free
xi1 c* u«

js

monetary
auprevent a creeping

VVAlVlVliVAVO

and

level.

the

thorities

rather

Federation

expenditure,
proximately

not*iii

• prices

tendencies

liV.Vl'lVXllOV

„

falling

ton8*run stabiuty of the price
I

of

people begin to realize what

is going on and take steps to protect themselves. When it is coun-

-

and

wages

some

wage

,

the

Chairmansh^bf H fhe Jnvest-- Administrator Director,

Industrial

State
Talla-*
that> as your faf^passing on to the co^umer
N^w.^York-r Fund's hagSee, Florida, and presently conSh^ereW
statement wisely indicates, an im- some of the fruits of technological 1959 appeal..-, I ■:&$&-,t.v. sultant .to the Pitt-County, North
Lawrence G.
Carolina r Development Commis-;
creeping^lace (wThoi?
KST taflln3 ttle r° a! price it innovation.in the form of lower Thomas, Haab ^Botts^ partner, in ■ sion 'joined the Staff June 1.
Botts-,- will head
an
an actual deflationt will he nnite
in.
real
ac.f oeiiation; will pe quite i^P1168 a. latu price remains con- priCes or in the form of better the Put & Call
nominal,
rokers group in
Mr. Weston's position with the
nroducts at stable nrices
Prices
sufficient to halt expansion and
cfan4.
^
proaucis ai siauie
induce recession
stant..
of the less progessive industries the unit.
corporation will be as consultant
insist
insist

lnvestors

yieids,

hiehpr
mgner

on
on

etc.-once that

hnnd
bond

stage

has

more

gradually declines. As

it

shoullf

be

a

footnote,

ing industries must be allowed to

added

ment

the

Security

Bankers,

section

Greater

Dealers

financial: unit in

the

of

Services

Division,

Florida

Development Commission,

.

keeps"inflMionlda

.

at^p?^

^

Si

.

Let

For Higher Living

Standards

me

illustrate the difference

A.

siaiement

u

A

•—1..
VMV.

maintainable

growth

with

stable

prices will achieve higher standWonder

whether

^ loilg rHJ1'not
\
one
should

torical

N^vtv

..

-

AMfxxvi

•

iaili

-

-

mo-

example. The period of the

late 1920's

immediately preceding

the Great Crash of 1929

was

char-

acterized bv stable „rices /absence

1

„A

.

p»

o

u

th.

Washington, D. C.




.

l

r

costs

have

not

fallen,

on

between the two postulates, the the contrary, will have to

postulate of price stability and the
Again, I heartily agree when the postulate of
op„a„i
v/i monetary stability, by
Hivuv.uij oiauuuj, uj
Qccpi-to" fViof
<(o
xtnnJ..
asserts that
a
steady just one but rather important his-

ctotomonf
fltpmpnf

where

acrerizea oy staoie prices faosence
Price inflation) at least if

we

leave out of account security prices

The

reason

is

go up.
that under the sys-

tem of stable price level wages
tcfif
ui
aidutc
1LC
1CVCI
WdgCa
everywhere DHUU1U rise roughly
tVUJ WUCAC
should J
in proportion to the increase in

general

productivity.

This

is

whlch 15 ra^ely fullY understood
genfcrai

level — apart
fr0m wage differentials due to
differences in skill and temporary
wage

Emanuel

F

Shapiro
Corp.,-will be
Chairman and Harry ,'J. Delaney,
Brothers

Letvis,

Facto

0n

s

he has operated

foreign affairs. For many years
his own industrial

engineering

firm, serving as

in-

Maguir^ 8i.fJCd.,'- Inc.,' will uuouiai and economic adviser to
dUstrial cm-*.
°
f —-O-be Vice-Chairmhn Of:the Factors several European, Asian' and
,

group

in

the

financial

unit.

South American nations.

He

a

ma!t?r .of ver/ §rf-at imPort,anc-e
Tbe

:

prices : to yield from2.40% to 3.69%, according to ma-;,
' \
* IX

Van passu with the growth in out- countries a strong safeguard zard Freres & Co.;

- -

.

IV T

AAA

at-

fered

demand¬

ing

monetary au-

be wjse to Call their

of New York | f

Of City

—

achieve price stabil-

rW?in£
«aSiuwfth^he

"

=

fairly

implying

supp0se

thorities did

which -is

-

shall be very lucky

icy and monetary policy. I fully tionarv because
agree with that emphasis.
That was not mnde tn
simply means putting first things pari

|

little

linf;r™„

statement stresses first credit pol-

and

a

Indeed, I believe

and prevent a continuous or
infAvmi|tin+
nf tu nrir-P
ntG11matent upcreep of the pi ice

reduce

and

f;rrn'

.;

Offered to Investors

run

tighten discipline and
efficient v

inflation'

•.•

if we
hold the price line in the long
we

-tJiAA-n-

is manager o-. -th

Hewar<j

bound

-

CA,^X?1U

l-Jla

waste,

jnf.rea(;e

to

that

expert-

fidence in the soundness df

,

by eliminating weak
and by spurning manage¬
to renewed efforts to weed

ment

U. S. economy

gradually to erdde the
/ mllllOll DOflflS
mohey. '
All this should rfiake. it clear^
it seems to me, that the'postulate
of
long - run price
stability^ if;
rightly understood, implies a good
An underwriting group headed •
deal and is exacting enough." I,'
therefore, doubt the- wisdom of * by The:Chase Manhattan Bank on
June 4 puchased $27,000,000 Newt
asking for more.
York' City 3.60% various purpose
Freer Trade and Convertibility ■■ bonds due June 15, 1960 to J974, j'

Price

Gradual

to

Confining myself, then, to the
of a growing economy, I have
respect and sympathy for the view
that the price level should bcallowed gradually to decline.
But

not

like

—

qru^

case

mild purgatives serve a use¬

spots

inflation.

as

bu^s|$pe

during the postWstlr .period
;.municipai bond departmen
^ have chrt>niC though

intermittent

ful function

fashionable to belittle

now

Will

Udlll"'1'1*

which the

Decline

popular today that mild re¬
me repeat, only mild

very

j

vigorously

to go down during

and growth
0f retrogression and

Sympathetic

cessions—let

checking inflation,
may have to
halt expansion or
even induce recession."
This, by
implication, condemns deflation
It is

would

d0f.iinedecline

the process of

as

iV

^

progress

than

the

to revive
view which is

prepared

old-fashioned

opinion
opinion,

j

be

even

forced to take action and in

are

0f

<!ather

postwar period canavoided in a
enterprise economy, even if
price or monetary stability is
maintained.
I personally
would

later governments

or

ditions

had them in the United

as we

free

rising standards of living and
levels of employment." It

that "sooner

•

whattvK«s .of less progressive, indus^iekiy

cVon:

systP£

States inaltogether
the
not
be

govern¬

savs
says, auite riehtlv in rav
quite rignuy in my

-

ucts of the progressive industries
must fall and prices df dhfe-'prod-'

more

that

®„dcr

ie

price
rises" not only for the sake of
social justice, but also and pri¬
marily "in order to achieve high
high

Sherrerd,

and

up

I presume,

.

ments to avoid "inflationary

and

partner in Butcher &

output-.-falls as u »^P2^(|?,VSin€ss, cycle v.yps.Win^s, as «

O'uy- Suppose

1937-38 type. I hope the Com¬
mittee will agree that mild reces¬
reces-

pages,

The

James

or

the statement manages to sketch the basic issues and
to give very sound advice on a
variety of policy questions. I find
myself in agreement on most
points and shall confine my re¬
marks to amplifying a few.
three

W. Heward will become

1
a

depressions of the 1929-32

severe

barely

In

resolution.

proposed

pri^control^and By
restricUon
choice.

consumer

the Committee means,

Admit J. W. Heward
PHILADELPHIA. Pa.—On July "»

medal is that prices of the prod-

(

than rigid systems of alloca-

or

First, I should like to congratu¬
late the drafters on the excellence,
forcefulness and clarity
of the

'

.

exacting,.
; A fbe price iertdas.to . postulate of noninflation would be
.
really less exacting than the pol- J,v. .The, second implication of longr
icy of price stability—namely, in run price stability is that if prices
the

called

have

I

statement

the

on

Great Depression.

while catch

a

the price level will be pushed up.
.The other side of ... the same

that easy to avoid

It is true that in one case

against inflation; that foreign competition has salutary effect
on a nation's
economy; and protectionism must be resisted.
have been asked to

will after

hypothetical question. I can only
say that in my opinion it would
not have been

in

head there, wages elsewhere

per

time to go into that

no

even

progressive industries, than
productivity. If workers
in the progressive industries cap¬
ture the whole increase of output

least

at

or

''DllIvlMJI ■ WIWIIWM-iy

general

greatly mitigated.

of inflation leads
the monetary authorities to take steps entailing recession.
Maintains large increases in money supply and credit are first
element in any inflationary situation.
Dr. Haberler asserts
freer trade and fuller convertibility are a strong safeguard

I

avoided

been

faster,

Thursday. June 11, 1959

.

R|i|fi|tf|i' SL Sh&fT£rtl fO

,

indus-

exnandint?

to

the

prices had been allowed to fall,
following depression would

have

harmless, particularly since the beginning

hrioflv

rose.

the

small amount of inflation is

Harvard economist denies that a

MV

contracting

tries—cannot rise

would argue that
kept stable, i.e.,

been

had

MV

differentials to induce shifts from

mone- •

was

because

And some people

Economics, Harvard University

Professor of

there

inflation

tary

IIABERLEIl*

By GOTTFRIED

prices. But it could

that

arfiied

hp

...

Crain Ope
HEMPSTEAD,'
Crain has opened
at 114 Main St.

New Office
•

a

Y.

—

Nathan

branch office

served

Colonel

in

as

the

a

LieutenantStates

United

Inspector General's' Department, with Air Service and
"-jr' A~" ~~'a
m
ail
Air Transport Command in

Army,

theaters oi operanux-

Volume 189

Number 5854

.

The Commercial and Financial Chronicle

.

.

(2647)

sylvania National Bank and Trust

exchange for each share of stock

shares

News About Banks

Anglo

Company, with capital stock of
$5,562,000,
divided into 309,000

shareholders

of

stock

common

the

of

value of $18 each.

par

CONSOLIDATIONS

Bankers

and

OFFICERS, ETC.

REVISED

The
The

CAPITALIZATIONS

Bank

increased

was

$500,000 by
New

pany,

the

York,

has

appointment

C.

of

Glen.

New

announced

to

Charles

dent

United

*

At -the

Company

according
made

of

to an an¬
Hoyt Am-

by

trust

the

-

•»;

'

Y

V

'■

'

'

f

®a
' f'
1

'

Frank

.

"

»

"

■#v'

'

'

Bogardus, Jr.
Lindsay have been

Stuart

offices

assigned

been

,

andj

,

;

ad¬

■

,

to

in

Assistant

the

trust

Vice-Presi-;

department of

The Chase Manhattan Bank, N.

George Champion, President,

Frank

and

The

opening of The Seamen's
Bank for Savings, New York, of¬

Y.,i fice

an¬

Beaver

11

at

Street

Battery Bowling Green

in

Ray

C.

J.

Secre¬

cor¬

in

serve

the

Lebanon

office.

Mr.

Hustwit

banking

career

commenced

his

1946 with the

in

Potter Bank. Following the mer¬
responds with the 130th anniver¬
ger of Potter Bank into Fidelity
sary year, of the bank.
last fall, he served as a control
James M. Lane was appointed ■J;'5
VV:rV :t;
p::.teller until his appointment at the
an Investment Officer, and three
Harry R. Marshall, Trust Offi¬
Lebanon Shops office.
Assistant Treasurers were'named: cer of The
County Trust" Com¬
Mr. Nesbitt began his banking
Edward
A."
Hohenstein, money pany, White Plains, N. Y., com¬
career
in Butler, Pa.
He later
transfer
department; Robert E. pleted 25" years of service with
worked in Rochester, Pa., and Los
Jones,
special
services
depart-, the bank. '. ;
Angeles, Calif., before joining Fi¬
ment; and Robert L. Matthews,'
delity in 1956 as a member of "the
loan review department.
> •
National, Bank of Westchester,
loan department.
*
£
*
'"v '
White Plains, N. Y. through Ralph
Mr. Koch has spent his entire
The
election
of
The
Tyner,
Jr.,
Chairman,
and
Right T.
J.
Honorable C. D. Howe of Montreal Harold
Marshall,
President, career in banking since 1926 when

nounced.

Both

former invest¬

are

ment officers.

^

•

-

.

'• •

<

to the Advisory Board on Inter¬
national^ Business; of'; Chemical

the election of J. Frank

announces

Holahan as: Vice-President. v;

Corn

Exchange

was

announced

Bank,

by;

:

,

New

H.

1

"i

his

P. Morgan &

Fidelity in

for the Board of

System, Washington, D. C., on
June 12, 1959, and will join the
bank on June 15..

with

merger

Guaranty

Trust

Company

of

Trust

will

York,

of

started

P.

Ford, a Vice-Presi¬
the
Morgan
Guaranty

His age was 54. Mr. Ford
with the Guaranty Trust

Cpmpany

Ainslie A.

of New York

39

elected

Kenneth

Lincoln

*

:!i

National

Company
its

Bank

and

Central New
York, in¬

of

New

Syracuse,

York,
creased

capital stock

common

$2,096,250 to $2,358,280 by
sale of new stock, effective May
from

29.

(Number of shares outstand¬
ing—235,828 shares, par value—

K:

Messrs. Hogg, Roy and Carlson

At

named

an

in the domestic

are

r

i

Vice-President.

special

end

banking divi¬

the

of

*

*

■

v,

meetings near the
month, stockholders

Fairfield

The

of

sion and Mr. Svikhart is associ¬

„

County

Trust

ated with the personal trust divi¬ Company, Stamford, Conn., and
sion.
^
; • K the Danbury National Bank, Dan,In addition, Messrs. Thomas E. bury, Conn., will vote on a pro¬

posed merger of the two banks.

Darrow,

Frederick
E. - Groehl,
Robert G. Hildreth, Jr., Arthur F,
Keller, Allen R. Malcolm, Law¬
rence
R.. Mehringer, and Robert
T. Williams

H"-,

.

.

'

'

tal

June 9

brating

at

dated

versary.

175th

-

,

i'

..

Anni¬
—;

of

May
of

close

Absorbed

shareholders

its

effective at .the
business
on -May
22.
by: Hartford National

Bankr and

5,

Trust Company,

ford, Conn.

luncheon; cele¬

a

the. bank's

of $500,000, has gone
voluntary liquidation by a

resolution

-Banking opportunities in the
expanding economy of the future
hold
great promise,
Albert C.
Sjmmonds, Jr., Chairman of the
£oard of The Bank of New York,
said

stock

into

.

Melvin

Carl,

President

Montgomery.,.. County

of

Bank

citing

the
and

died

oh
"

.

.

.

.

•

.

"'f

of $25,000 .(in. 1953. dpl80 years hence,:, Mr a Simnionds
said, these
predictions
income,

Merger certificate- was issued
approving and making effective,
as
of'the close of business May
-"sound like good news, to bankers 22;" the' -iherger of Pioneer Dime
as well as: other businessmen." Bank, Carbondale, Pa., with com¬
Today marks the day in 1784 mon stock of $50,000 and pre¬
when
the
bank's
jdoors.
were ferred ^stock
of. $100,000
into
opened for business for the first Northeastern
Pennsylvania
Na¬
time.
tional Bank and Trust Company,
$
"Jf:
& 1
Scranton,
Pa., with common
lars)

-

Rbbert Louis

-low

Feuer

and

Alfred West
Assistant

Thur-

were promoted
Secretaries at The




announced.

by action of the bank's board of
directors at its June meeting held

of

National

Bank

exchange for each share

Philip Cortney Given
Honorary Degree
Hamilton

College

awards

Doc¬

of Laws to noted indus¬

torate

trialist-economist

CLINTON, N. Y.—Hamilton Col¬

share.
lege on June 7 awarded an honor'
The four-way merger has been ary degree of Doctor of Laws to
informally approved by the Di- Philip Cortney, Chairman of the
rectors
of
the
four
U. S. Council
institutions

per

<

.

is

now
contingent on the
approvals by the boards,
ratification
by
the
respective
shareholders and the consent of

of

supervisory authorities.

Inter**

and

formal

Since The

First National

n

the

t i o n a i

a

Chamber
Com
of

Bank

of

me r c e

President
Coty, Inc. $

The citation

of

Monterey has offices in both
Monterey and Seaside, the merger

g i v e n

would

Co

add

four

Crocker-Anglo's

offices

system,

currently numbers 81.
posits
of
the
three
Peninsula

M r,
trie y
stressed his

to

which

Total

institutions

would,

r

leadership

de¬

in
Interna--

the

Monterey

tional

in¬

ber

by

$27,000,000 CrockerAnglo's total deposits of more
than
$1,500,000,000;
their
com¬
bined $29,000,000 in assets would
crease

Cham¬

of

this

Comf
"which

merce

is
celebrating its

Philip Cortney

year

Crocker-Anglo's as¬ 40th anniversary as a champioti,
than $1,700,000,000; of international trade and invest^
and a total of almost $2,000,000 ment and of the private enterprise
Crocker- system." It said that Mr. Cortney
would
be
joined
to
Anglo's
capital had personified in his own career
$118,000,000
in
many of the basic tenets of the
accounts.
be

added

sets

of

to

more

earliest

direct

Crocker-Anglo

Bank

The

in

tered

ancestor

of

and the institution

1870

its current form

-

Mr.

Cortney is presently cOm-

pleting a two-year term as Chaitr

-

resulted from

Chamber.

International

char-

was
-

in

the

of

man

Chamber's

United

He will cohtimle

of
the
former Crocker First National and

States Council.

Anglo California National Banks.

governing body.

the

consolidation

1956

The proposed merger would be
Crocker-Anglo's second this year.
Only a few days ago, on May 29,
the
County
National Bank of
Santa Barbara and that institu¬
tion's branch in Montecito became

Crocker-Anglo offices.
%

'

Bank

National

First

as

of
__

a

member

of

the

Chamber^

Stone & Webster Group
Offers Duke Power Go.1
Preferred Slock
underwriting group headed
Stone & Webster Securities

An

'

■■

Rose-

stock

of

$.5,454,000.

was-effected" under
and

title

of

-

The merger
the

Northeastern

charter
Penn¬

burg, Roseburg, Ore., was granted
permission from the Office of the
Comptroller of the Currency to
open a new Bank.
Elton V. Jackson
is President and S. W. Mc¬

Laughlin is Cashier.

by

Succeeding Mr.

a

a

Gordon, Frank

become

officer

a capital of $250,dividends to yield 5.25%
The
surnlufi
lssue was awarded to the group
surplus Of *250.000.
of $250,000.
at competitive sale June 9 on its
bid of $100,419 per share.

Detroit Tractor Co.

Hyde, Vice-President, is being
to

Corporation placed on the market
June 10 a new issue bf 250,006
shares of Duke Power Company
5.36% cumulative preferred Stock
($100 par), series B, priced at
$102,095 per share and accrued

The Bank has
n
000 and

Richmond.

Proceeds from the sale will be
used in connection with

in

Securities Offered

the comf

continuing
construction
which is expected to in-?
Willis E. Burnside & Co., Inc., voive the
spending of $66,423,000
/. Mr. Gordon, a native Rich- New York
City, offered 132,3/5 in
including $39,745,000 for
monder, has spent his entire busi¬
shares of class A common stock completion
of
new
generating}
ness
career in banking and with
(par $2) of Detroit Tractor Ltd. plants and additions,
The
Bank
of
Virginia, having
at $2 per share.
The new preferred stock is sub*
joined that organization on May
The company was incorporated ject
to redemption at $108,095
1, 1936.
on
Oct. 31, 1958 under Delaware per share on or prior to June
He was promoted to Assistant
1,
law. It maintains its office at the 1904, at $106,095 per share there-?
Vice-President on Dec. 12,
1949
Chamber
of
Commerce
Bldg., after but on or prior to June
and - to
Vice-President
on
June
:l,
Muskegon, Mich. The corporation 1969> and at $104,095 per share
4,1952.
Charge of the 8th and Main Streets
bank.
'

intends

manufacture

to

in

pany's

program

Mus-

Mr. Hyde joined The Bank of
kegon, three different models of
Virginia on Nov. 16, 1945.
On Dec. 7, 1951, he was elected crawler (tracklaymg) tractors and
four
different models
of fourAssistant Vice-President.

promoted to Vice-Pres¬

was
on

Dec.

*

*

The Rapid City

National Bank,

Rapid City, S. Dak., increased its

capital stock from $600,$800,000 by a stock divi¬
dend, effective May 29. (Number
of
shares outstanding — 32,000
shares, par value $25.)
common

000

to

tractors

wheel drive rubber-tned

thereafter.
Givi
comDanv

$

<

effect

th-s

to

3ale

r

the

will have outstanding in

SZ to

the

^O MO sh^ of

preferre(j 2 837 shares of series A preferred stock of $100 par,
industrial use
The tractors will
10 987i604 shares of common stock
range from 14 HP to 52 HP. Draw
(stated
value
of
$17.50), and
bar (rating) but immediate pro¬
$235,000,000 of long-term debt.
'
duction will be concentrated on
Duke Power provides electtic

be used for farm and

which will

6, 1957.

*

the

35

HP

model.
A
demonstrator

Drawbar

number

small

models

of

the process of being

are in

manufactured

Detroit and will

m

new

service
of

in

North

servjng
g^tes.

the next 30 days.
Orders have been placed for en-

be completed in

50

the
and

Piedmont

South

counties

in

section

Carolina,
the

two

Electric service is supplied

directly by the company in 214
cj^es, towns and unincorporated
transmissions
and
other communities. Among the cities
8 by W.
W. Crocker, Chairman major components to be delivered
are
charlotte,
Winston - Salem,
of the Board
of Crocker-Anglo to Muskegon for assembly into
D^ham, Greensboro, Burlington
National
Bank,
San
Francisco, tractors. Materials are also being
and Salisbury in North Carolina,
Calif, and T. A. Work, Chairman oidered for fabrication into imand Greenville, Spartanburg and
of the Board of The First National plements
for attachment to the Anders0n in South Carolina. ♦" 1
Bank of Monterey, The Bank of
tractors. When, as and if the proin
1958
the
company's total
Carmel, and the First National
ceeds
of
this underwriting are utility operating revenues were
Bank of Pacific Grove, revealed
*

.

A

*

figures that < pro¬ -Trust, .NOrristown, Pa.,
jected a population of 266,000,000 June*6 at the age of 52.
in 1980 and an average family
.After

Hart¬

...

*

....

-

capi¬

common

the

Richmond
offices,
Moseley,
President,
His
promotion was

C.

Man¬

of

administration of

nine

Herbert

ident

Bank

chester, Conn., with

named Assistant

were

Secretaries,

National

the

bank's

He

£

First

for

advanced

$10.)

was

ble

T.

«

Streets

office, was made
Regional Vice-President responsi¬

in

Assistant

Carlson

to

1952.
*

Vice-President.

Trust

Arthur

Com¬

merged into

Gordon, Vice-Presi¬
dent in charge of The Bank of
Virginia's, Richmond, Va., 8th and

Smalley,
Vice-President
in
charge of the mortgage depart¬
ment, was also elected to Senior

~

Vice-President.

was

Com¬

E.

Company,
New
York, announces the promotion
of
George R. Hogg, Arthur R;
Roy, Jr., and Clifford M. Svikhart
from Assistant Secretary to As¬
sist

Manufac¬

Trust

Vice-President.

Senior

Trust

.Irving

business

the
of

Traders

Buffalo, N. Y„

pany,

years

1947.

and

turers

ago. - He became
Second VicePresident in 1945 and Vice-Presi¬
dent in

Trust

was

William T.

Main

Slodden, Vice-Presi¬

\ dent in charge of
extension -division

Trust Company of New York, died

June 6.

*

t;-.

,.

be

Guaranty

Morgan

Company of New York.

\ Francis
dent

New

into

merged

former

Bank

*

i

i

Union

The latter

pany.

Co., Inc., until

the

for

Governors of the Federal Reserve

of J.

-

work

the

successor

present assignment as supervisory

Morgan & Cie, Paris, subsidiary
its

to

went

review' examiner

Harold

Helm, Chairman.

terminate

Holahan will

Mr.

York

he

Guaranty Trust Company and its

*

*

banks, and the
The

present market value of CrockerAnglo stock is approximately $35

has

Koch

Assistant

an

Shops
office, Mt. Lebanon; Mr. Nesbitt
will serve in the Allegheny Val¬
ley office at: Verona; and Mr.
Koch remains in Fidelity's Butler

the

area

named

will

relations. V''T'

lie

and

tary, according to John A. Byerly,
Fidelity President. Mr. Hustwit

the

to

charge of advertising and pub-

J

' J ' V.

'

K-

Hustwit

Company, Pittsburgh, Pa., branch

Assistant' business
development department.
"v"
As Assistant Secretary, he will be
'rt"V>.i~s," in

W.

vanced

dents

a

'-J

W.

Nesbitt have been designated As¬
sistant Managers of Fidelity Trust

Cashier t to

Vice-President;
"

25,000 shares, par

in

of The Bank of Carmel
stock. The

and
John

-•

.

1955, - is

Pa.,

$250,000 to
stock dividend, ef¬

—

-

April,

Sharon,

;

is

Mr.' West, who joined the trust
sistant Trust Officer to Trust Of¬
company's
training program in
ficer and Arthur C. Merrill from'

Assistant

outstanding
value—$20.)

joined the trust Company in No¬
vember,' 1957.

company announced the promo¬
tion of John F. Lennon from As¬

a

of

from

fective May 27. (Number of shares

assigned to
the systems planning department,

■'..time

same

Trust

Goodfellow, midon, President.
; David
C,.
Mr. Feuer, who

^

•

.

York,

nouncement

Vice-Presi¬

Green *" and

K.

Powers.

States

of

Merchants and Manufacturers

National

First National City Trust Com¬

stock

stock in

stock

receive 44 shares of

Crocker-Anglo

capital

common

Bank

Of

Carmel will

sj:

NEW BRANCHES

NEW

National

their respective

in

27

-t

joint announcement

on

June

gmes,

in progress available, the company intends to f J45>065,486 and net income Was
»
$22,859,280, compared with $136,*
merger
in start manufacturing in Muskegon.
an£ $20,888,343 in 1957.
which those three latter banking
institutions would merge into and
L. Nelson Carter
Irving Lobel Opens :
become part of Crocker-Anglo.
In the event of the merger, the
L. Nelson Carter passed away
FOREST HILLS, N. Y.—Irving
that

negotiations

are

.

toward

a

Bank of Monterey and
holders

of

Bank

Pacific

receive

22

The

First
Grove

shares

,

,

.

.

.

.WAV,

!74;6o3'

shareholders of The First National

of

.

four-way

of

the share¬
National
will

each

Crocker-

May 30 at the age of 76.

Mr. Car-

ter had been associated with Kid-

der,
1ST

.T

Lobel is conducting a securities
He

wts

f

Peabody & Co. in Newark, with Fleetwood Securities Corp,

The Commercial and Financial Chronicle

28

tion is

the

blessings of the Administration, spends the taxpayers'
and thus obliges the Treasury to find larger and
larger sums in the bond market. Unless and until some
way is found to bring the powers that be to an under¬
standing of this fact, we shall have such problems almost

Continued from first page

-

■

money

As

We See It

rates of interest which are attractive to
small investors.
•
The necessity for raising the debt limit has
must pay

.A

,

these

Reserve

action

-

-

paid on savings bonds, it is the "small
presumably benefits from higher returns on
these obligations and hence the politician is predisposed
to doing what is necessary to attract him to the securities
in question, or what is believed to be necessary for that
purpose. There is a good deal of merit in this type of
investment when its terms are right—merit, that is, for.
'the small investor—and when they can be sold readily,'
these bonds are capable of bringing substantial sums of
As for the rate

v

■

who

into the Treasury. One supposes that the needed
changes will be made without much fuss about them.

money

The higher rate on marketable bonds is the sticking
point; the sticking point not because of any logical reason
against it, or any practical consideration tending to make
the change undesirable, but because there remains in so
many uninformed minds the notion that somehow interest
as such favors the wealthy and is a burden, an unnecessary
and unfair burden, upon the man of small means. The
banks are large holders of government obligations and so
are
many other large institutions and enterprises. No
sooner is the subject of higher interest rates on governments raised than Voices are heard charging favors to the
rich at the expense of the poor. It would be surprising if
such arguments are not used to the limit by a good many
to prevent, if they can, any change in the present law
limiting the interest rates on government bonds.

v

change is greater and the logic
behind it is even stronger than in the cases of either the
rates on savings bond or the debt limit. Whether we like
; it or not—and, for our part, we do not like it—the Treasury has to borrow huge funds both for new money and for
the funding or refunding of issues already outstanding. It
> could
not begin to raise such sums through the sale of
savings bonds. It begins to look more and more doubtful

from

5

page

•

-

'

whether it

can

do

which should be
more

-

than

recourses,

so

the

by the sale of long-term bonds—
main

reliance

at

this

time—if

no

414% can be offered on them. This leaves two
neither of them in the public interest.

The first is to continue the present policy of
confining
issues to maturities within the current interest rate
ceiling.
.

v

The other is to have the Federal Reserve
Deal

^

System come to
the custom in the New
days, and drive interest rates down—if that can still

the aid of the

Treasury,

as

was

be done—to a point where investors are
willing to take
governments at rates the Treasury is able lawfully to pay.
So much has been written and said about the
desirability
of getting much more of the national debt into
longer

,

...

term obligations that it is hardly necessary again to bring
the many arguments to bear against further shortening of
the debt. Such

policy could end in something approach¬
ing disaster, and should not be thought of for a moment.
]
The other recourse, that of in effect converting government
obligations into money, would without the
slightest question in the end bring calamity—if carried to
the extreme necessary for the purpose in
question. There
are those who
inveigh against higher interest rates at
every opportunity, and there are those who would have
•

a

;.

-

r

,

.

-

\

-

the

Reserve

authorities soften their policies, but the
changes necessary to make it possible to proceed without
removing the 4V4% limit probably are greater than generally realized. The trouble is that so few have any real

conception of the state of affairs here in question.
But, of course, none of all this goes to the root of the
trouble,, which is the reckless way Congress, often with




be

can

than others

.

a

■

these in¬
are

well

and

can

customers'

take

needs

find themselves frozen

certifi¬
cates to refund the $1,800,000,000
1J/4S maturing May 15—this was
priced at 99.95 to yield 4.05%. The
attrition may be large1—the net
result of the package was to re¬
duce the expected net cash fi¬
nancing in May by about $1 bil¬
lion.

on

There

for

one-year

several

were

Whenever the

the

to

reluctance

a

to

needed

reserves

supply
permit

the

improvement
in
Treasury's situation: s %

:

.

due course.

The Treasury

on

Its Way

is taking

very

a

realistic view of the situation and

and
the

the
Treasury's cash balance by about

$350,000,000.;
The

in

Federal Reserve

the

obligations,

foregone conclusion that
Treasury will
offer shorta

this debt is in the form

of special

issues and in some cases
special interest rates must apply.
There are, also, some $51 billion
of
savings
bonds
outstanding,'
which
are,
in essence,> demand
obligations.
These could cause
considerable embarrassment to the

Treasury if any considerable num¬
ber of the holders should wish to

April, July and redeem them and currently re¬
year.
This, you demptions are exceeding purchases
in addition to the substantially.
cycles
of
91-day
and
182-day
There were, $179,921 billion of
Bills.
These offerings should al¬
marketable securities outstanding
leviate
the
Treasury's
problem on
Jan. 31, 1959, of which the
ly

Payments by Britain
Germany directly to
United
States
have helped

(3)

West

is

it

Much of

Debt Reconstruction Is

billion of 12-month Bills quarter¬

$4,500,000,000 of maturities.

in.

these

of

the offerings of the 289 and
340 day Bills has initiated a new
(2) The new plan of financing;
cycle of what will be one year
obviously reduced
the attrition
Bills.
It is the plan to issue $2
from
the refinancing of May's

conservative.

was

7

may

dated Treasury issues by the com¬

;

^imate of

as

more

short dated issues in exchange for them,
and, of course, the Treasury itself
mercial banks and, thus, higher can control the maturities which
rates
in
the
nearby maturities may be placed in various U. S.
seem a reasonable expectation, in
Government investment accounts.
absorption

ready

reasons

this

original

indicated

of

care

far

Exchanges for Short-Dated Issues *

Banks have maturing

interest rate

securi¬
flexible

more

readily than such banks

Commercial Bank Investing
Under Recent Conditions

January,

in

October of each
will

note,

is

,

also fills up the somewhat. It will make it pos¬
public held $147.4 billion:
Bill
"maturity." sible for corporations to acquire
$62.0 billion of this debt ma¬
be $1,500,000,000 Bill maturities suitable to their
tures within a 2-year period.
of tax bills due in September and
dividend and capital market re¬
$17.2 billion in 2-3 years.
again
in
December.
This
still quirements and commercial banks
$23.2 billion in 3-5 years. • <~}\
leaves March and June 1960 open
will find these obligations very
$17.2 billion in 5-10 years. *77;
for the cash financing due in suitable to their needs from time
$27.8 billion over 10 years. I'H/
July and in the fall—if the Treas¬ to time.
The
Federal
Reserve
package

Tax

December

there

Now

ury

will

needs to

them.

use

$4,500,000,000
ties
a

had

over"

security there

into

would

been

a
huge $9,500,000,000
maturing next May 15.

amount
Now

15 maturi¬

"rolled

been

one-year

have

of May

it will be $6,900,000,000.

Barring

unforeseen

c

i

r c u in¬

stances, the May operations will
carry
the Treasury until early
July, when a new cash financing
will be necessary — to be an¬
nounced in late June. Any minor
from

present

expecta¬

probably will be handled by
increasing the weekly bill issues.
Pressure

for

Higher Government

Treasury officials conceded that
bond could be

the present

sold

with

now

ceiling at 4%%.

But

they have indicated that it is un¬
likely to expect the Treasury to
"sit

for

a

year

in

around

months

being

or

a

unable

to

pand

We find

great

many

position of
finance beyond

as

the world,

our

first conclusion

uncertainties exist in

many

economic and political

uncertainties—there is fear of
and

is

there

fear

it

Nevertheless,

is

of

war

inflation.

evident

that

anticipation

May, August and November

ruary,

maturities.
of

the

Thus,

debt

a

reconstruction

structure

is

taking

place and a very important change
is
occurring,
especially
in the
short-term maturity schedule.

remainder of the
calendar year, the Treasury may
need to borrow as much as $8-$10
During

the

in

cash.

"roll-over" $8.9

held

will

It

need

We

find

the

that

also

Treasury

and the Federal Reserve authori¬
ties

are

in

a

dilemma because of

Treasury deficits on the one hand
and-Federal Reserve's desire to

the purchas¬
the dollar on the

maintain stability in

ing

/

How

to

•

of

power

other.

billion of publicly

How,

f

-

..

Should Banks Invest? ;

should

then,

"

commercial

banks invest their money? There
will
mature
is interest to be paid on savings
Total one-year and other time accounts. There are
amount to about $79

issues

,

which

during the period.
maturities

billion,

including

maturities.

Savings

*

' * •;

■

bond
"';.
4

a

Predicts

five years."

Depressed

Bond

The Treasury's task,

Sound debt management is dif¬

that

financing is population will grow at an acceler¬
ated rate in the years ahead, that
now concentrated in March, June,
the country's needs will grow, and
September and December issues.
that there will be a tremendous
Treasury debt, other than Bills,
demand
for capital
and credit.
now can be concentrated in Feb¬
Tax

billion

Rate

no

too, will be able to ex¬
its open-market operations
into the longer Bills and doubt¬
less open-market operations thus
may be even more flexible than
in the past.
System,

Finally, the package cuts down
sharply on the problem ahead for
a
If the entire
year from now.

<

■

have

can

upon

short-term

with

thus

ties

tions

Yet the need for this

.•7

in

is

" —-—.

that

Those

stitutions.

their

deviation

Need Greater

•

thus

rapid impact

more

fortified

Continued

The
cash needs

All for the "Small Man"
man"

—""—:—

banks are more ;
liquid than 1958 but less liquid
than they were in 1954.
Federal V

without solution.

(1)

j

relief

no

many

now

obvious and public interest in the matter so
be no doubt that the Presi¬
dent will get what he wants and needs without difficulty.
Of course, everyone knows, or should know, that our public
debt is much too large at the present time, and should not
under any circumstances be permitted to grow larger. But
the fact is that commitments have been made that require
additions to it, and commitments must be honored. Some
legislators appeared at one time to be under the impres¬
sion that they could prevent loose fiscal policies by the
simple process of placing a formal ceiling upon the out¬
standing debt of the Treasury—as if Congress could in
this way bind itself irrevocably to better fiscal behavior
in the future. Of course, nothing of the sort has happened,
•and there is nothing to do for the moment at least but to
meet the obligations already undertaken.

'

and

keen

,

grown so

'

Thursday, June 11, 1959

.

sight.—
Today

restricted that there appears to

,

.

.

(2048)

is

a

tremendous

one

Prices

Increasing, overhead expenses to
be'met;*.Capital should be increased in many

instances.

Earn¬

ings must compete with industry's
earnings. But security prices have
been

obviously,

fluctuating

widely.

U.

S.

Government bond prices have not

and its cash

ficult, if not impossible, under cir¬

One can no longer
needs will be greatest/during a been stable.
con¬
period when commercial bank say that the Government market
financing.
Under loans will be increasing, on; at has either depth, breadth or re¬
existing circumstances, increasing least a seasonal basis, and pos¬ siliency. At times the market has
amounts of short dated offerings
sibly because of industry's need needed both Treasury and Federal
are
inevitable, hut the Treasury to replenish inventories. The de¬ Reserve help. At times the sup¬
obviously will try to offer in¬ mand, too, could well coincide port seemed limited and perhaps
termediate and longer dated is¬ with
increasing capital market re¬ confusing. Today bond yields look
sues whenever the market shows
quirements.
Under the circum¬ attractive and stock dividend
any ability to absorb such securi¬
stances, one can not look forward yields look low by comparison.,; )
ties. It continues to be the Treas¬ to
What should one do? What can
any early or sustained recovery
ury's desire to reduce the size of in bond prices.
one do?
One might conclude that
the debt, to extend maturities and
now
is the time to buy.
If you
Longer rates are around the
to issue obligations to others than
have idle cash perhaps that is the
4% or better level now. What they
commercial banks
in order to
answer.
But what will you buy?
do will depend upon how much
avoid the inflationary aspects of
Fed e r a 1
and how often the Treasury hits U., S. Governments?
an
increased money supply. Re¬
Tax-frees? Corthe longer maturities with addi¬ Agency issues?
cently part of the objective was
tional issues.
In this
area
the porates? What maturities will you
achieved in that a goodly portion
Intermediates?
Treasury's problem is most ag¬ buy? -Longs?
of the Treasury bills have been
Shorts? These questions cannot be
gravating.
Buying power from
absorbed by corporations, pension
answered directly.
Each institu¬
U. S. Government Trust Accounts,
funds, and other large non-bank
itself
from
Municipal
Accounts
and tion must determine foi
holders. However, as these holders
what to do based upon its own
from the Savings Bank group is
rebuild
inventories, purchase either
decreasing or has ceased. position. To determine that posi¬
mortgages, purchase corporate or
Offerings of tax-free
securities tion, a number of, fundamental
municipal bonds, or perhaps use
factors must be considered: are
high and well may increase.
funds for capital purposes, the
What is the trend of demand
With housing starts large, mort¬
short-term
Govern¬
supply
of
gages will be available in abun¬ and time deposits? Your bank and

cumstances which necessitate
stant

deficit

,

—

.

.

ments available to the market will
increase

again

and

short-term

dance.

tinues

If

business

activity

con¬

upward, corporations well
may seek increasing amounts in
Federal Reserve authorities have
the
capital market. 'Obviously,
the Treasury market's
1 [As was the casej—£<f.]
competirates

could continue to

rise.

The

all banks?

-

they fluctuate seasonally?
What is the trend of loans? All
Do

loans?

Yours and all banks?

Do you

'/

have adequate commer-

Volume

cial

,

loans,

estate

real

serves? *

or

•'

<

"

30%?

or

Are you over or
"

Do

7

have

you

appreciation?
-serves?

I

would added substantially to their port¬

beyond

City obligations. I would not
5-year range.
As a
overlook, either, the possibility of result of the change of Federal
acquiring
some
well
regarded Reserve policy last year and be¬
local
issues
where
high yields cause speculative holdings of both
under-invested? might well prevail. If the institu¬ intermediate and longer dated
depreciation or tion is in the 52% income tax bonds were dumped upon the
bracket, it would seem appropri¬ market, prices of Government se¬

'

•

issues,

market

not be unduly concerned whether folios of intermediate dated is¬
the tax-frees were State, County sues, and especially to issues
or

the

situation? 52%

Do you have real secondary re-

,•

general

_;

ate to place
tion of the

the investment por¬ curities have declined very sharp¬
portfolio in tax-free ly. As a result, investment port¬

folios, especially those which have
invest- securities.
Where a bank is not in the 52% been extended, now show: sub¬
do you have
satisfactory income from other income tax bracket, and where stantial depreciation.
sources: loans, commissions, serv¬
the loan portfolio is negligible,
Warns on Being "Locked-in"
ice charges, etc.?
consideration might well be given
In a few months, the normal
Do competitive factors control to corporation bonds or Federal
seasonal commercial loan expan¬
your decisions or can you operate Agency
issues.
Satisfactory re¬
with some freedom in your com¬ turns can be obtained from a well sion will take place. Many banks
munities?
'
" ;
diversified list of Railroad Equip¬ may find themselves still lockedDo

•;

depend

you

and not the loan fluctuations.

loans

•

-

utilized

when

•

.

40%-60%;

risk assets

In other words: Are

high,
you

t; It

maturities

but, gen¬
corporate bonds

enjoy the liquidity of U. S.
obligations under

Government

low, or in between?
Do normal circumstances. Many mar¬
have satisfactory valuation ket factors play a part, to be

reserves?
•

do not

70%-30%?

or

trust

ment

60%-40%; erally speaking,

of earning assets;

50%

50%-

can

,

be

from these ques¬

seen

tions that each institution is a

influence of the
a
bearing upon

unit market action. It is interesting to

Therefore, each bank

unto itself.

sure,
and the
tax
factor has

note

that

while

many

corporate

that will bonds trade between a 4.25%
best serve the purposes and the basis, to as much as 5.00%, de¬
objectives of that institution. If pending upon quality and maturi¬

must

adopt

program

a

the policy is to be something

7

an

of

investment trust, one program

might be determined, but if it is
intended to pursue the more nor¬
mal functions" of r a
commercial

-

-

bank, quite a different approach
:;! ;
.1 V

is called for.

-

*—

.

instance, naturally, one
must have adequate cash or cash
balances with which to operate.
There must be a primary reserve.

•

In every

Then;; every, institution * should
have adequate secondary reserves.
What
are
secondary
reserves?
A

1

;

as

follows:

Highest

(1)

determines

definition

.strict

them

short-term

grade

•.securities.
i

i

r

Without

(3)

into

convertible

Readily

(2)

cash through sale.

.

of material

risk

loss.

Second Federal Reserve

the

Vi In

District, the examiners
U. S. Governments out
;years as
secondary

•

two

to

issues

appropriate
reserves.

consider

Quite

for
ob¬

viously,. purchases of such securi¬
ties now would provide attractive

yields and such holdings would
satisfy
the
foregoing , formula.
Since wide price fluctuations have
occurred
and will continue
to

ty, Treasury l^s due 10/1/63 at
provide a 5.69% corporate

89 12/32

in

investment

in

perhaps unable to satisfy the

loan decrease.

clusions

sonable

to

limit

these

issues

time

deposits

to

a

of

can

con¬

We

Final
in

are

la

uncertainties.
tant

than

period

The

operate

many

future

is

far

impor¬

more

that

we

banking institutions
conservatively yet con¬
our

wisely,
structively.

We have

well

as

of

before

ever

rampant, it

great

a

re¬

our own communi¬

to the credit system

as

of the nation.

at

loss.

a

served

not

—

Obviously, prime loan
must

thus

and

the

will

situation

If speculation runs

can

excess

suggest strong buying

However,

if

able to take

the

care

with

power

Capital
needed

and : credit

will

large amounts for the
growth which inevi¬
tably lies ahead. The banks have

opportunity.

to place
impregnable
position to supply the short-term
concerned
is

is

themselves

credit

in

needs

now

an

which will

arise

longer range expansion
the 1960s. Let the
capital market
portfolio, a more, con¬
supply the long-term needs. Leave
in structive approach can be made.

and

It

seems

that

reasonable to

demand

the

for

anticipate
credit

will

the inevitable fluctuations in bond

prices to that market, and do not
extend debt maturities to the ex¬

the

the

at

Advisors,

"Christian

and

"Life"
1959

and

Ernest

magazine,

Loeb

Awards

financial

luncheon

a

jour¬

held

Juno

City. Dr. Raymond*
chairman
of
tho

Saulnier,

Council

of

Economic

the principal speak¬

was

at the event.
A check for

er

lars

and

thousand dol¬

one

bronze

a

presented

to

plaque

each

wero

winner

by

Laurence J. Ackerman, chairman
The Loeb
Awards Advisory

of

Board,
sity, of

behalf of

on

the

Connecticut,

Univer¬

administra¬

tors of the awards. Mr. Ackerman
is dean of the University's School
of

Business
Bronze

sented

Administration.

plaques

to

four

also pre¬

were

Donald
York

I.

Rogers

of

Special
the

New

Tribune";

"Herald

Edgerton

and

newspaper

magazines
writers
for
Achievement. They are:

Jay

of

the

"Minneapolis
Murray J. Ross ant of
"Business Week", and Alexander
O. Stanley of "Dun's Review and
Modern Industry."

Star";

in

of the loan

the

of

business

nalism

be

in

legitimate

the

institution

of the seasonal

and

Bust! !

be

does

for investment securities.

rea¬

investment

received
for

of

Monitor,"

Havemann

can

customers

White

Science

President's

Conclusions

from clear and it is

warranted

coi>

portion of the
the institution

; Nate

4 in New York

draw?

do so only if un¬
credit is pro¬
correspondent banks, they
buy Federal funds, they can vided. We then would have only
borrow at Federal Reserve Banks, ourselves to blame for what would
be
sure
to follow!
or they may elect to sell securities
Boom
and
can

their

Awards Announced

In¬

J.

Draws

ties

borrow from

>

,

What final

one

po¬

comfortably.

be

fact; the
might well be added to
the secondary reserves, but sec¬
ondary reserves certainly should
not be decreased in anticipation of

sponsibility to

Banks, of course,

will

matter of

a

and

tential loan demand

equivalent tax return. Despite at¬ loan' demand,
tractive yields on long-term
porate bonds, it would seem

securities

again

As

amount

a

Winners of 1959 Loeb

so

to provide for the time

as

loans

creased.

upon

Are loans and investments

As

decline, the amount avail¬

able for investment should be

ments for income, or

;

29

(2649)

'•'v,-'---'

,

What is your tax

i

,

loans

How strong is your capital po¬
Your... surplus; - your re-

?

sition?
.

The Commercial and Financial Chronicle

.

.

.

credit loans? *' *

consumer

.

-

Number 5854

189

The Loeb Awards

were

created

in

January, 1957, by Gerald M.
Loeb, Partner in E. F. Hutton &
Company, with a grant from tho
Sidney S. Loeb Memorial Founda¬
tion to the University of Connecti¬

substantially in the 1960-65 tent that
they can be embarrass¬ cut. The Foundation was estab¬
period. It would seem appropriate,
ing later on.
lished by Mr. Loeb in memory
Savings deposits might well be therefore, to the extent that the
The Treasury has its own prob¬ of his
brother, who was a news¬
invested primarily in mortgages, money position permits, purchase lems and is not
going to solve paperman in San. Francisco and
of
maturities
out
through the
again depending upon the tax
yours.
Federal
Reserve
policy later with the
King
Features
situation. As of Sept. 24,, 1958 all early 1960s is warranted, but only will continue to be flexible
and, Syndicate.
Reserve City Member banks on a scale down. Prices are low at
times, may operate to the tem¬
This recognition of outstanding
showed only about 37.8% of sav¬ now but they could go lower.
porary disadvantage of your in¬ journalistic achievement that con¬
ings deposits invested in mort¬ Nevertheless, prices are histori¬ vestment portfolio. Investments, tributes to a better
public under¬
cally low and I don't believe we
gage loans, while Country Mem¬
therefore, should be a means to standing of the United States freo
are
going to embrace creeping an
ber banks showed 42.0%.
Prob¬
end, and not usually an end in enterprise economy is the
only
inflation as a way of life.
themselves. Some years ago we
ably a ratio of about 60% in
tribute of its type paid to financial
called securities
mortgages and/or longer
term
"Surplus Funds and business writers.
Tax Considerations
bonds is an appropriate limit for
Investments." That is what they
In addition to Dean Ackerman,
To
the extent that earnings, well
a commercial bank. These ratios,
may be in the future.
other members of the Loeb
of course, are lower than those reserves and capital position per¬
Loans could become a
higher Awards Advisory Board are:
shown by mutual savings banks. mit, it seems desirable for a bank percentage of total earnings as¬
Governor Abraham A. Ribicoff,
to take advantage of the differ¬ sets, so it behooves us to
N. Y. banks have used intermedi¬
get our of
Connecticut, Honorary Chair¬
tax on investment
ate and longer dated tax-frees in ential between the 52%
portfolios
in
order
man;
Frank
H.
Bartholomew,
place of mortgages but the operating earnings and the 25% now so as to take full advantage
United
Press
Interamounts of savings deposits and capital gains tax. Accordingly, it of the dynamic period which lies President,
national; Frank M. Folsom,
tax-free securities are small com¬ seems appropriate to take profits ahead.
Chairman, Executive Committee
pared to both total deposits and in one year and to take losses in
of the Board of
Directors, Radio
capital. Section 8-234 of the Code a different year.
Corporation of America; Robert
If losses must be taken in the
of Laws of South Carolina pro¬
G. Shortal, 1958 President, New
vides that no more than an amount same year as profits, the losses
only as a partial substitute
for mortgages.

grow

Chicago Analysts

York

Writers' Associa¬
Gov¬ equal to one-half of the capital must be taken first from the prof¬
Elect New Officers tion; Financial E.
Herbert
Dougall, Pro¬
that it stock of a banking corporation its. Such an operation, of course,
CHICAGO, 111.—Neil E. Heikcs, fessor of Finance, Stanford Uni¬
is important to have well spaced and one-half of its
deposits shall causes an adverse 27% profit dif¬ Manager of Pension Fund Invest¬
School
of
versity Graduate
maturities within the two or three be invested in mortgages on real ferential. Many banks which have
ments of Commonwealth Edison
Business and Mr. Loeb.
V
year area.
During the first six estate at any one time. Some made 1958 a tax profit year, there¬
Company, has been elected as
months
of
1958
Treasury Bill commercial banks complain about fore, will prefer to make 1959 a
President of The Investment Ana¬
Wool Assoc. Elects
occur,

even

in short-term

ernments, it is quite clear
<

yields

assuredly

unattrac¬

were

market was
starved. Now, however, the Treas¬
ury is being forced to offer very
«attractive
issues
in the shortterm area and a large volume of
high yielding short-term issues
are in the market—ancl more will
be coming to it in the months
ahead.
These offerings should
The short-term

tive.

permit banks to build up holdings
of secondary reserves as available
new funds and maturities permit.
prefer short maturities now, but
most institutions must have oper¬
I

ating income and a position 100%
in shorts may not prove entirely
safe either.

Investment Portion in

Tax-Free

Issues

tax

some

banks in the

tax-free securities

—

again

depending upon their overall po¬
sitions. If the situation is a well
balanced one between loans and
investments, eventually, about 75%
of the securities should be in 1-5
year

Governments

and the re¬

be placed in taxobligations running out to

mainder could
free

Loans to Deposit Ratio

As of Jan.

31,1959 in New York
State, savings banks showed loans
75.3% of deposits; in Connecticut
the ratio was 63.4%; and in Mas¬
sachusetts it was 63.7%. In several

tax loss year.

Valuation
A valuation

lysts Society of Chicago, succeed¬
ing Clarence E. Torrey, Jr., of A.

Reserve

for securi¬

reserve

ties, of course, is highly desirable
for it
does

serves

have

similiar purpose as

a

reserve

a

loans.

for bad

debts

on

Where profits on securities
been set

aside

in

a

reserve

savings banks may go as account, then such reserves are
high as 80% in mortgages, pro¬ available to offset losses, if they
vided 10% of the loans are FHA's should occur in the same or an¬
If reserves are not
or VA's.
Somewhat higher aver¬ other year.
available and losses are sustained,
age ratios are shown by Savings
and Loan Associations. Laws seem some other account, perhaps Un¬
to be more and more liberal each divided Profits or even Surplus,
states

year

where

concerned.
liberal

for

mortgage

lending is may have to be invaded if securi¬

Perhaps they are too
some, too strict for

others.

ties must be sold at

Generally

speaking,

I

would

is

available

a

loss.

If

a

to

provide
for losses, management may effect
reserve

some

52% income
bracket might profitably hold

Some

competition from
Mutuals
and
Savings and Loan Associations.

they

may

be loath
practice

pension programs.
years.
Thus, where the institution
and the nature of the
A forecast of lower loans should
portfolio might run up to
liquidity requirements.
not,
in any case,
modify the
60% of earning assets, Govern¬
When loans decline, some insti¬ amount otherwise needed or de¬
ment
holdings could be about
tutions tend to extend maturities sired
for
secondary
reserves.
30%, and tax-free securities about
in investment issues in order to Secondary
reserves
should
be
10%. So long as there would be
about 10

loan

a

good diversification of AAA and
active, full, faith and credit

AA




offset the income lost. During the
first six months of 1958, the banks

Becker
Other

considered

as

the offset to the ebb

and flow of the deposit

balances,

&

Co., Incorporated.

officers

elected

•

Were

L.

Brewster

Southworth

of

Associates of the New York Cot¬

Butler, Jr., of Duff,
Clark, as Vice-Presi¬
dent; Harold M. Finley of Chicago
Title & Trust Co., as Secretary;

ton

and Fred J.

2nd

&

Brown of the National Wool Mar¬

Anderson &

Young of Harris Trust
Savings Bank, as Treasurer.

Elected
Board
year

of

term

members

as

Governors
were

for

of
a

the

three-

William B. Cud-

ahy of American National Bank
& Trust Company; Robert A. Sjostrom of Shearson, Hammill &
Co., and Clarence E. Torrey, Jr.,

New Sincere Branch
WINTER
cere

Co.

&

office

at

under

the

has

opened

Second

direction

a

St.,
of

branch

N.

W.

Brook

H.

Rollins.

R. H. Messerman Opens
ATLANTIC
ert
a

CITY, N. J.—Rob¬

H. Messerman is

Elected

1st

Vice-Presi¬

dent is

Irving Weis of Irving Weis
& Co., New York City. Re-elected
Vice-President

is

Elliot

keting Corp., Boston, Mass.
elected

Treasurer

is

W.

Re¬

Bruce

S.

Lachlan, Jr., of New York City.
Those

elected

Governors
son

nel'

are:

of Merrill

to

the

Board

of

Harry B. Ander¬

Lynch, Pierce, Fen¬

&

Smith, Incorporated, New
City; James J. Caires, Bos¬
ton; Marshall N. Cohan of Cohan
and Company, Boston; Georges A.
Florin

Fla.—Sin¬

HAVEN,

50

Exchange, Inc. at the annual

election.

York

of A. G. Becker & Co.

desirable tax switches which

otherwise

to
undertake.
If
the
of
cy issues, short-term high grade
setting up a reserve for securities
municipal obligations, and high is
undertaken, there will perhaps
grade railway equipment trust
be less of a temptation to utilize
obligations, as, well as short-term the
profits realized for dividends,
Governments,
are
suitable
for for
building purposes, for mod¬
liquidity purposes. The employ¬ ernization or for such other
things
ment of the different types of
as management might be tempted
issues and maturities would de¬
to undertake, such as provision
pend upon the overall • risk ex¬ for
past service on new or revised
posure, the tax situation of each
consider that short Federal Agen¬

G.

Hartmen

W.

Nichols & Co., Boston, Mass., was
elected
President
of
the
Wool

engaging in

securities business from offices

at 52 North Windsor Avenue.

Rhode

of

Prouvost

Island

Lefebvre

of

Inc.,

Boston;
E,
Bradford Keith of The Top Com¬
pany,
Inc., Boston; W. Gordon
McCabe, Jr. of J. P. Stevens &
Co., Inc., Greenville, S. C.; Wil¬
liam Reid of Bache & Co., New
York City; Charles R. Rudd of
Marriner
&
Co., Inc., Boston;
George

M.

Thurmond

of

Thur¬

mond & Co., Inc., Boston; William
G. Wigton of Orvis Brothers &

Co., New York City and John M,
Williams of Royce & Co., New
York City.
With the exception of Messrs.
Howard. David Ginder passed
Cohan and Thurmond, all of the
away May 27 at the age of 61. Mr.

Howard D. Ginder

Ginder

was

Assistant- Treasurer

of A. M. Kidder & Co.,

Inc.

others

were

members

tiring board who

were

of

the

re¬

re-elected.

»

The Commercial and Financial Chronicle

Continued from page
i'-

Bank and Insurance Stocks
By ARTHUR B.

This Week

.

Thursday, June 11, 1959

seasonally it usually is a
one,
as
many
banks
trust fees, commissions, etc.,
second and fourth quarters.
counts greatly with
bank

course,

bond man re¬

favorable

cently predicted a

6% return on

credit

that

rates

good erade corporates, and this by
the end of 1959. Maybe this will
come
about; maybe it will not,
but certainly the trend is strongly
in that direction.

have recently
df reports of higher rates
of news that will bring about

The

newspapers

been full

and

higher rates. United States Gov¬
ernment
bonds
have
slowly

in the
What

ordinary operations of the
be financed from the

will

capital subscriptions of the mem-

borrowings, and from
From these

bers, from

general eco¬
nomic conditions banks tend to
shift out of bonds—governments,
municipals, states and corporates
—into loans; and as loans are in

earnings.

resources

prime name loans, names that, by
their standing are entitled to the
best credit rating and hence the
lowest interest rates on their bor¬

favorable

Under

large
measure
more
profit¬
than securities investments,

a

able

the

banks

have

are

only too happy to
on their books.

loans

more

appears quite certain that
earnings trend will be up¬
ward.
And if, as so many expect,
interest rates continue to climb,

it

So

the

have

should

banks

the

very

a

a

The lead by several

Probably this is why prices of
shares have been doing so
well of late.
Of course, in one
bank

the New York Trust-Chem¬

case,

ical

Exchange merger

Corn

pro¬

make

will

Bank

the

loans, repayable in the currency
lent

normal

on

inter*

for

terms

be
of
member countries, to their political
subdivisions,
or
to private
enterprises. In the case of loans
to private entities, the Bank may
require, as a condition of the loan,
a guarantee by the Government or
a
public financial institution of
the country in which the project
national

lending. Loans may
to
the
governments

made

finance

which

the

While

located.

is

not

profitable year.

few days later
the several Federal Reserve dis¬
trict banks started to increase the
discount rate.

of

volume

The
Bank

loans.

price, and today the 91day treasury bills are quoted just
under 4.00%. When was the last
time we saw that?
A short while back,
several
large New York banks announced
an increase in the interest rate on

Then,

high

a

started

off."

to "sound

We may

opinion, will
government, bonds if their

have

should

dividend

1958

now.

been

$1.63, and the ratio of
dividend payment to investment
income was 65%, not 82%—Editor.
$1.30, not

wonder who, in their

buy
rates

competitive.

made

not

are

Actually, historically, the rate is
not what may fairly
be called
high. The business world has be¬
come

forced

the

on

Deal

rates

in

economy

Deal—Fair

New

low

to the

inured

so

days

the
that

Happy Birthday to
1 Lewis "Hank" Serlen
Lewis "Hank" Serlen of Joseph&

thai
York

Co.,

Citv

120

on

Broadway,

New

June 17 is celebrat-

any rate that can be considered
reasonably fair in terms of inter¬
est rates before the currency jug¬
glers, causes the soft money boys

their

raise

to

in

hands

Not to be left out of the

agony.

picture is

the demand for loan accommoda¬

the

Bank

in

countries

several

that

funds

under pressure
overlooked, for it
potent factor, too.

is

a

not

be

selves in
wise.

a

banks

Bank officials who

sulted

on

the

are

of

subject

second

have

quarter

earnings

measure

of cheer in their

and the

probabilities

quarter will be

a

con¬

a

good

voices;

that the

are

good

Of

one.

.

are

AND

GRINDLAYS

51st

officer

of

birthday.

This

year

the

Association
member

committee

of

Grindlays Bank Ltd.

of

York,

the

and

Traders

still

he

active

very

organization.

13 ST. JAMES'S
Trustee

Depts.:

Nairobi;

Rd.,

13

EARNINGS COMPARISON

Tax

Ins.

Depts.:

INSURANCE STOCKS

13

54

54

Parliament

Parliament

8t. James's

St.

Bulletin

on

Request

Bankers to the Government In: aden. Kenya,

*

'

Laird, Bissell & Meeds

-

*

.

*

ADEN, SOMALILAND
NOR fHr"N

\NT

OIT

PROTECTORATE,
H-RN Rl'.l|>PS»a.




-

or

repayable

entirely

in

dol-

other currencies which can

be used to finance

may

provide for-

It might be useful to Indicate
that there

are

similarities and dif-

imports of capi-

-:time-^ter, ;%tvjppy7|;hesereasbrisV'the "Fund for,;-this institution will make ordinary

the^paymehts

BanjC'(wuL^^h.|o^i^payable,

that

the loans are made.

would

in the
addi-

result

The

"Fund"

The initial

'

-

'

additional

-

to have an

capital is subscribed,
said, "Accordingly,

The President

if the Bank's operations are estabon

effective

an

basis

in

with

expectations, the
States will in good faith

be committed to

no

increase in

of

the

to its

share

capital." The bill

makes

you,

for this

vote for the in-

subscribe

and

of the increased

provison

the subscrip-

United

States, and
specifically requires the authoriof

States

can

crease.

I call this provision to the

Exchange

attention

Exchange

indication

American

120 BROADWAY.

Stock

Telephone:
Bell

NEW

YORK

5, N Y.

BArclay 7-3500

Teletype NY 1-1248-49

Specialists

in

Bank

Stocks

law

before

subscribe

of
of

the

of

While

United

an

a

this

Congress

the

tentions

United

the

to

as

announced

the

United'
States

in-

an

in-

States.

vote

for

increase in the capital can be

given

only

with

resources

of the "Fund

Special Operations" are to be
the equivalent of $150 million, of
which the United States'1 share

for

period of experience with
the Bank's operations before the

Members New York Stock

Branches In:

INDIA. PAKISTAN. CEYLON, BURMA, KENYA,
TANGANYIKA, ZANZIBAR UGANDA,

s°iit^

~

Members

fPGANDA, ZANZIBAR A SOMALILAND PROTECTORATB

lars

zation

&

Sq.

the Bank

cases

,

loans

initial

tion

St. James's Sq.; Govt.

Dept.:

terms

,

representatives

it

before

St.; Travel Dept.: 13 St. James's Sq.; In¬
come

be made on

eign exchange to cover a reasonable portion of - local currency
costs, particularly if the result of
with respect to specific projects, a project is to increase the borIt must be recognized that some of-rowing country's needs for foreign
the Latin American countries from exchange.
time to time may not be in a posi,
•
TJ}_n
'i- '
tion to service additional hard
Lonirast witft lBKD . <>;*

As the President

crease

FIRE & CASUALTY

SQUARE, S.W.I

to

au-

and conditions appropriate for
dealing with special circumstances
arising in specific countries or

States assuming an

United
1958

54 PARLIAMENT STREET, S.W.I

are

special

capital have jbeqp -j-^^g iQyjrjg which

completed, the

accordance

■

both departments are ' untied" and
may
be used by borrowers for

Special Operations'Ms intended to; loans repayable in the currency
may be made-. lent, but unlike the International
partly or wholly Jin the Bank it J has a supplementary
increase its calable capilM by an
currency of the borrowing coun"Fund ' for -1 Special Operations,"
additional $500 million. This. jn*
try.-" Payment "of ? interest
and which will enable it to aid ecocrease
in
capital will require a Amortization of these loans, to the nbmic development in all Latin
hree-fourths affirmative vote in extent that
they are repayable in American countries. In iview of
the Board of Governors. This arr local
currencies, will not impose a the special circumstances affecting
rangement was made in recogni- direct burden on the balances of particular countries or ;projects,
tion of the conviction of the Latin
payments of the country in which the loans from the " Fund" may
the paid-in

on

lished

'

Head Office:

.

is

nominating

26 BISHOPSGATE, LONDON, E.C.2
I nn^or Rr/wrhpt

that

that it would be wise

Security
New

Almaigamating National Bank of India Ltd.
and

"Fund"

pointed out in
also marks his 26th with the firm.
his message, the U. S. representaGolf is his prime hobby, with tives agreed that such an increase
bowling a close second. A former would be desirable, but believed

in the

BANK LIMITED

■

.

Sept. 30, 1962, when

million.

ing his

a

NATIONAL

na-

The Bank will use its foreign
exchange resources ordinarily
,
only to finance foreign exchange
.
;
,
V .- •
costs of a loan project. It may,
Fund for Special Operations r however, lend a member country
i turn now to the "Fund for its own local currency paid in on
Special Operations" to which I subscription to finance local curreferred earlier. The loans of the
rency costs, and only in special

tional contingent liability of $200

them¬

find

good position earnings-

anticipated

United

and rates headed as they are, the

commercial

the

this increase in capital could not

may

transpart

one

loans

,.

,,

capital,

With the banks well loaned up,

i

in

be

made

repayable

partiallyJ

or

for an increase in the js intended for this type of ex- wholly' in the borrower's currency,
capital of the Bank should be traordinary assistance in develop* The
activites and accounts • of
made at an early date. Since this. ment programs, but' it Is to be this "Fund'* however,-may not'be
increase would be in the form of small in comparison :with the or-;.'mingled with the operations: of
callable capital and not paid-in
dmary operations of- the Bank, its ordinary department, so "that

lenders to operate

should

one-half

.currency, of the member.
gold and dollar payments in

provision

economy's

the

cause

,

and

tional
The

ferences between the Ihter-Amertal
equipment.
There- are also ican Development Bank and the
some projects which may be imInternational Bank. In 4he Interp0rtant for a general program of American Bank a larger portion
economic development in a cbun- of its total resources comes from
try# which will contribute to an paid-in capital and less from borjncrease jn its productive capacity
rowed capital than in the Interan(j ujtimately to its ability to national Bank.
Moreover, in the
been used to provide foreign exservjce foreign debt, but which Inter - American Bank a \ larger
change, the Bank will continue to wqj n0^ clirectly and immediately portion of the paid-in capital is
have usuable currencies available jncrease jfs debt
servicing capac- in the form of gold or dollars, so
lor additional-loans.
_,ity.
Some
countries, may find that it will encounter fewer diffiThe Bank agreement provides themselves in a difficult foreign culties- in utilizing the capital subthat the capital may be increased exchange situation which will re- . scriptions of its members than the
v/hen
additional
funds are
reduce,- at least temporarily, their. International Bank has had.
J
quired for vits operations. * It; is lability ,to >repsy "hard"- loans J:
-I Like the International'-' Bank,

American

tion by the home building people.
Their share of the demands for

dollars
.

.

private project to be effected without
member country o'oj thorization of law.

jects, it is not required to obtain
a
government
guarantee.
The
Bank
may
also make loans to

„.

-

4y4%

sub¬

,

a

action where these

posal,

Of course, the soft money advo¬
cates
in
Congress
immediately

member's

should be under-•-payments anywhere. The part of
increase may be the member's subscription paid in
requested after 1962; if the Banks its .own currency may be- used
.operations prove to be as success- without restriction for payments
an^ as valuable as we expect 0f goods and services produced in
them to
■ territories.
These currencies,
; Aside from this $500 million intherefore, may be used to pay for
crease in the Bank's callable capi-~ exports
of materials needed in
tal, which may be anticipated, connection with loans byfhe Bank,
after several years, the agreement National currencies may also be
provides that the capital of the used for payments in other counBank can be increased at any time tries, unless the member specifiby a vote of two-thirds of the cally restricts^ the currency.J to
Governors with at least ; three- payments in its own territory,
fourths of the total voting power.- Fifty percent of the United States'
In brief, the capital of the Bank subscription is considered national
cannot be increased unless the currency in this sense, and may
United States as well as the other be used under the .same, terms
countries agree to it and in ac- as the currencies of -the other
cordance with the bill before you, members.
.
. _
_

there is a special reason
of joint or regional projects.
>
eastern banks was followed by for the pronounced price moves;
As in the
case
of the Interseveral in the interior.
The in¬ but excluding that case, and pos¬
crease in the prime name loaning
sibly the rumored Bankers Trust national Bank for Reconstruction
rate was from 4% to 41/2%; that dividend increase, there seems to and
Development,
the
Interin the rediscount rate was from be only one reason for the higher American Development Bank will
3% to 3Va%. Then along came th« price levels, operating earnings charge a commission of 1% on
New York State Superintendent are on the upgrade.
all loans, which it will invest in
of Banks with the announcement
securities
to
meet
any
On the subject of dividends, this liquid
that the Banking Department had
liabilities of the Bank on its borspace feels that further into this
no objection to the savings banks
year there
will be several in¬ rowings or its guarantees.
publicizing an annual rate in¬ creases. The present ratio of cash
crease from 31/4% to 3J/2%.
•
dividends
to operating earnings
Repayment in Currencies Lent
Finally, • it was announced in is approximately 60%, a figure
Since the ordinary loans of the
Washington that President Eisen¬ that justifies an increase here and Bank must be repaid in the curhower
would
ask
Congress
to there through the list.
•
rency lent, the resources of the
raise both the debt limit and the
CORRECTION—In last week's Bank will revolve. As portions of
maximum rate of interest that
column, American Insurance's pnncipal and interest are paid in
may be paid on U. S. bonds.
It
dollars or other currency that has
is

each

actually needed
to
dis- authorization, it
charge the Bank's obligations.
* stood that this

rency

reinvested

eroded in

rowings.

is

earnings

of

scription to the ordinary capital,
and one half of its quota in the
Fund" are to be paid in gold or
'

Development Bank
Is Essential to Western Hemisphere

WALLACE

one

-

.

one-half

13

Intei-American

Bank Stocks

—

hardening of inter¬

Such is the
est

-

.

(2650)

30

Congressional

the

security

behind

the

Bank's

borrowings will not -be diluted
through the less-liquid loans of
the "Fund." \
~

will be $100 million. Of the United
The organization of *he InterStates' contribution, $50 million Is American Bank in a general way
payable in the first instalment and is similar to that of ^he Interthe rest at a later date, in one or national Bank. The final authority
more
instalments.
Because the is.a Board of Governors, meeting
United States is providing such a annually, with each country aplarge portion of the resources, its pointing a- Governor. Voting in
affirmative vote will be necessary the Board of Governors will be in
for a loan from these resources,, proportion to stockholding, except
since a two-thirds vote is required, that each country has 135 addiIn accepting the responsibility of tional "membership" votes. As in
contributing to the "Fund for the
case
of
the
International
Special Operations," the Latin Bank, this provision gives a someAmerican countries have, given an what larger voice to the smaller
effective demonstration- of their countries.
'
'»
willingness to help each other in
As in the International Bank,
the field of economic develop- the active operations of the Bank
ment. In. the past, loans of this will be controlled by a Board of
special type have been made only Executive Directors, to -which the
by the United States. The prece- Governors may delegate "all 'but
dent of cooperation by other coun- a few reserved powers^ The Board
tries in this area is one that we 0f Executive Directors will conconsider important. We feel that sist Gf seven members, one apthe "Fund" will be a very useful pointed by the United States, and
adjunct to the operations of the the six others elected by a rather
Bank to make it an instrument complex voting scheme
which
fashioned to be of assistance to will give representation to both

all Latin American countries.

,

As I have mentioned previously,

the large and the small countries
and to the various geographical

Volume

189

Number

5854

.

.

.

The Commercial and Financial Chronicle

(2651)

j

areas of Latlri America. Voting in

ship in the Inter-American Development
Bank
in
accordancewith the agreement signed here

the Executive Board will be pro-

'4 portional to the votes of the

Thos. Miller Retires

,

coun-

Afler 60 Yrs. in Street

tries which the Directors repre- in/Wasftington/on April 8. We be^ sent. Except for the United States,
iieve that this Bank will be of
j;fjthe Executive Directors and their great value to the countries in

/

,

J, Alternates must' be' of
,t. nationalities
so that at
time -12

different

this-hemisphere
their

any one
American

production

in

^

"

*

The

rising level of interest rates is expected to continue
for quite a period of time because
the demand for loanable funds

from

—

"

"

corporations, state and local governments, consumers,
housing and the Federal Government is going to add

i

by

President,

a

who

will

<

be

willing and anxious to help5^®,
to" improve their economic :r

are

elected by the Board of Governors.is also to. be an Executive

«w°w'd-beuncertain

them

There

. ; .

l^the

1"
brokerage business."
/.i/Vice-President, appointed by- the > Oui* relationship,, with Latin
Pn June 10, on his 78th birthd Board of Executive Directors, on America' has always been close, ' day* the same Thomas Miller volnthe President's- recommendation, as evidenced by our membership untarily wound up one of the
The Board of Executive Directors in the Organization of American longesty careers in the history of
is to appoint a Vice-Pi-esidenf ' iii^'states'-and'other
regional institu- the:; Chicago/financial community
.

d

given certain exemptions >mCnt:.of fche.-Inter-American Dematters, oildlegal process and velopment! Bank will serve as a

in

account

executive

with

The money

rate
debt

G. O Connor Opens

U

The

bill, which the Committee
has under consideration, contains
five " basic- s- provisions// (1);: , It

.;

.

•

the Pi esident to accept
y^em^rship m ,the_Intpr-^mert^r
nn,rfli«r>mont
Bank
for-the

if; empowers
—

cari^-!Dev«lppmerit
States \ n

Umted
the

.

;

omi*.

accoidance^with
authorizes.

funds for paying our subscription.
.

(3)

It makes

■

provision for

jvmarketing of the Bank's

(Special to The Financial Chronicle)

v

v

BURBANK, Calif.-Russell

Mr.

WernGF.& Co

the,

.

:/

hosted

nd shearson, Ham;

,7",

,

D

'

:

P.-

by

Chicago

associates

and

:,,
The bill/^. /(jgjjepiallo The Financial Chronicle) '/
, 'i
i- provides for giving the Bank the
BEVERLY HILLS, Calif—Jack,
,

finally, It

mecutive
;

activities;

of
and

the
ExT

°Pens InV' °ffice

"

provides for coordina-

the

of

United States Governor

officers

to

Admit J. W. Rumbough, Jr.

ihg,'rtE,a: securities business from

Advisory Council in the same way
Ml

as

is

the
c

9n

now

provided

by

law

:

The bill authorizes the appropriation of, 9650 million to ? the

,;.n

partner
Broad
-

: an

-tioir

for

accepts

the

<

cals.

•.

The^ findings

Son,

capital

for ordinary operations
and $50 million to the "Fund." An
additionaf appropriation of $60

Z million will &e< required .when
n/ called by the Bank but not before

which is

wl11 become

a

partnei

in

Whit-

Monetary Policy Continues Stringent

comb & Co 41 East 42nd Street,

a
30

New York City, members of the

-

New York Stock Exchange.

—

—

The
too

—

?

will

not

become due

before Sept.

uncertain

the

balances

levels
will

spectacular,
sword of a

it

prevailed

Steel, in fact/ accounted for almost two-thirds of the $669 million increase in the durables field.
Automakers and other manufacturers of transportation equipment showed a 93% year-to-year
hike.
Overall, durable goods
.

.

.

in

October
on

the

is

in

not

by not

action

moving

the

of

towards

credit conditions
A

balance

and

to

in

be

strong

is

this

of

process

markets

that

very much with us, although
as it was
not so long ago.

few money

a

market

much to

budget will

retard
less

mean

most

done

at

ANGELES, Calif.

—

Miss

Marjorie Fisher has been elected
a

Vice-President

search

of Capital Re¬
Company, it has been an¬

nounced by Jonathan B.

Lovelace,

Chairman of the Board.
Miss

porate
and

Fisher

is

a

with

the

vestment

if it

Research

Company

investment

of

Manage¬
Los Angeles,

adviser

to

in

the field

and

of in¬

financial

was

with

Freeman Appointed
MORRISTOWN, N. J.—Pierson
A.

Freeman

Assistant

has

been

Manager
Reynolds

Brad-

the

local

&

Co.,

Park

To Be J. A. Zock Co.
On

Mrs. Florence Jarvis

was

elected

corporate secretary of the com¬
pany.
Miss Hazel E. Lazell was
assistant

secretary of the

company.

Capital

Research

the financial

appointed

of

Babson's

with Dun &

street.

elected

na¬

ington Mutual Investors Fund.

of the board of

analysis

Fisher

four

of
America, Interna¬
tional Resources Fund, and Wash¬

research since 1951. Prior to join¬ .office of
Square Building.
ing Capital Research Company,
Miss

—

and

Company

She has been associated

Reports, and

has to be
—:

tionally distributed open-end in¬
vestment
companies,
American
Mutual
Fund,
The
Investment

formerly cor¬
of the company

member

firm

even

was

secretary

directors.

ment

restricted

more

'■

■'

Capital

Elects Three Officers
LOS

and

the forces of inflation.
Government borrowing,

——

Capital Research Co.

specialists that the
the Government

and

likely some extension of the debt
higher rates.

.




It

monetary authorities
higher interest rates

will do

the

as

,

„

1957.

Psychology Diminishing

'

'

of

psychology is still

appear

believed

recent

,.

,

the cost of
money,

money

-

.

pressure on

and capital
the form of higher interest rates.

felt in

does

It

though
the
Steelworkers' strike
even

funds
for
expansion
and
modernization/ a : 37%
increase .
over: a95a's $^9 billion.
gn
capital is due. As I pointed out
"I thesitate^to use the word
"d
earlier, the Bank will not be able; 'bullish,'." -said* White House ecotV.
to call the second installment of nomic advisor Raymond Saulnier producers rang up a 127% yeartir
our subscription until 90%
of the when apprize^ of these findings, to year gain, a heartening dpturn
Vt total Subscriptions of the member- "But there - is^sno question about considering that durables tradi>
tionally set the industrial paceship are paid in. Similarly: it will it, this is.;a bullish factor. •
v
not be able to call the third in"First : quarter
appropriations first to falter when the economy
/ stallment until 90% of the second for 1959 soared 76% over the weakens, first to recover when it
has been paid, and it will also not closjng, three months of last year, reverses its field.
:
be
able to call the
second
$50 the biggest increase ever recorded
"Back of the bounce in new apj
million' of our 'payment to
the in Newsweek's 12-report series, propriations was the new look on
"Fund" until at least a year after The
season
helped — petroleum the balance sheets," Newsweek
/the Bank has begun operations, companies traditionally do their says. * "Manufacturers earned 22%
In this way, S80 million will be appropriating in the first quarter, more in the fourth 1958 quarter
all that will have to be paid to But even when the figures for oil than they had in the third, and
the Inter-American Bank before are stripped out, the quarter-to- 14% more than the year before.
I September* 3Cr.~ 1960.
i
.•
quarter- jump,
a
mighty ' 44%, .
.
.
Moreover,
manufacturers
stands
as
the
biggest in three started the year with more in the
I'
National Advisory Council's
;
years/
.
till.
'
'
Endorsement ; "
*■
\
*".:
'
"Certainly^ some of the signs
,,„Jonal Advisory Council^ Reel's Plans Are Spectacular
tbat were pointing the way in
onInternational, Monetary / arid"Exqept for
chemicals, every early 1955 — when the last big
./Financial Problems strongly industry covered by the survey surge in capital * appropriations
recommends-, that
the - United registCiSed gains.
Confidence in began—were in evidence again,"
States promptly accept member- fhe steel industry bordered on the Newsweek says.
new

However, it is evident

figure showed that negative reserve
$523 million which is back to the
high

to

Inflation

coricfuct'ed

30, 1962 when the third payment
of
$60,
million
to ' the
paid-in

weeks.

more

latest "Newsweek" Quarterly Sur- hung menacingly above its plants.
vey
of Capi^l
Appropriations,; First-quarter approvals moved up

show the nation's leading manufacturers approved $2.6 billion in

few

available

amounted

The inflation

A ringing v^e of confidence by
U. S/ industry Js evidenced in the

next

keeping the

way are

latest

that

be

^

:

the

keeping the reins tight

appro¬

37%
1958.

year, or

than $1.9 billion in comparable period in
.

noticeable for

since

obtained by Newsweek in its latest

priated $2.6 billion for first quarter of this
..

.

funds is not likely to diminish a
great deal
though the pick-up in loans is not expected to be

even

that captial expenditures are on the
increase which means that
the tightness in the money market
is likely to become more
pro¬
nounced with the
passing of time. The monetary authorities in
no

were

demand for

further,

by^ the National .In- to $575 million/an almost unbedus.trial: Conference Board.;'j Fig-, lievable 339% increase over the
second iir.es Jor the %st quarter of 1959 $131
billion
reported
in
1958.

Sept. 30, '1961,,-to make a
1 payment to the ordinary capital
subscription; the third payment

,1

(quaranteed by the Government) is much better than
the return
available in straight Treasury securities.

,

?• Grenville Bates on June 11

for N1CB and they show that U. S. industry

survey

agreement

V

.

—

(but no later:than Sept. 30, 1.960),
to pay in S3t> million to the Bank's

'

&

Whhcomb Co. Partner

for-expansion and modernization with the exception of chemi-

.

Z

/.

-

.

U the United States will be required

1

Godnick

become

J, Ur Bates to Be

A

after the dale on. which this gov¬
ernment

•

Eyery industry, particularly steel, approved decided increases

limita-

year

.

y

Godnick Son

platt has

..

$100

of

payment of the United
'Fund
■■States subscription to the uxr"nA
OwAniril
rVnoimlmnc
/.for Special Operations." On
or,

■h.

o

present

Also, it should be borne in mind that the
composition which
Treasury obligations have to meet comes in no small
way from
the Government itself, since
the yield on FHA and VA
mortgages,

Survey Reveals 37% Gain in Capital Spending

authorization

,vitmillion without fiscal
"

in

f

Street, New York City.

/ ,'

■

SK
vides

in

John w>

,

.

^

Partner

for

J^nited States repr^entatives
the International Bank and
International-Monetary,;^E.UPP.,

14

Rumbough, Jr., to partnership.

Directoix.of^the:Inter-;p&des,jifrM70 Hull Avenue, New
Bcnk by the National York .Crty-

maturity of

a

"the going competitive conditions in the
capital market will have
to be met. The non-Federal
bonds* such as corporates and taxexempts, are at levels which make them more attractive
to
investors than are Government bonds.

Mr?. Pauline W. Ross is engag-

American

with

years

one of $288 billion
which, under present law, would
have to revert to the
$283 billion permanent limit by the end of
the current fiscal year. It had been
evident for some time that
the Treasury would not
only have to have more leeway as far
as the debt limit was
concerned, but in addition it was known that
there would have to be an increase in
the long-term
statutory
interest rate if it was to sell bonds in order
to extend the
maturity
of the Federal debt.
The Treasury in order to
carry out some
semblance of a debt management
policy should be in a position
to sell long-term bonds from time
to time, and this means that

.

1 tion.

interest rate ceiling on
Treasury issues
or less.

no

temporary

Club

^

i

a maturity of more than five
years. The present
4Vi% for Government bonds was set in 1918. There

Debt Limit Must Be Raised

immunities under Amer- Eerlman, is .^conducting a securities
Hoppin Bros; & Co., 120 Broadican. Haw
and establishes.
the busihessjrom offices at 187 North; Way"'N/v York City', "members'of
procedure for dealing.
wtt£, such Canon Pvive, , ,, . ;,r
•
the New York' Stock Exchange,
legal, disputi-f as lmght j}use in
;
•
' 011 July 1 will admit Joseph W.

;,f required
til

and

There will also be an increase in the
Government debt limit
since the Treasury cannot continue to
operate under the

a

Lynch headed by Homer
Hargrave, Vice-President.

Hoppin Bros. & Co.

Adjust to New Developments

what to

floor brohonored ; at,
at

n

securities.Jack. Ferlman Opens

in the United States. <4)

,,

is

five

of Merrill

....

~

v

Luncheon -'at ,the

formerly with Oscar G.

mm &>Co
_

n

,r

was
was

out

rate limit of

combination Farewell-Birthday

North- Naomi Street.. Mr. O'Conwas

Miller

•

obligations with

wheat^

"

a
no

rates, had been overshadowed by reports
that the President in the
very near future would ask the Congress
an
increase in the rate that would be
put on Government

During most of this time, he
was also a member of the Chicago
Boafd Of Tfade (1904-1951) » and

^er in

for
to

can

for

;

spent many years

G.

O'Connor is engaging in a securitieg business from offices J at 213

nof

(2Lit

Agreement.

•

Co.

Government

management program of /the Treasury.
The increase in
the prime bank rate and the discount
rate, which pushed up the
whole level of
loaning

-

•

Federal

capital markets are in the process of trying
do, and where to go, in face of the interest
tightening operations of the monetary authorities and the

to find

Merrill

j Lyiich^Pierce, 'Penner & Smith,
further;link in these close political Inc: since 1945, started with Harris,
and military associations, and will Winthrop & Co. in 1899. Within
national financial institutions The/strangtheni.;, the
economic - ties about 20 years he was a partner
proposed
legislation
includes v a which are the essential ingredient of
the '^firm-v and
subsequently
of a stable and strong and unified served as a
^/section- to; give effect/to., these
partner of F. B. Keech
provisons.
'
<\ *.« v -a. 1
> -• ; Western ^Hemisphere.
•/•./•/.;/ './••■/& Co. and Winthiop Mitchell &
.

the

Treasury issues.

Market Trying to

so as to perform/its funceffectively, as
an;: inter-

Describes Five Basic Provisions

that

rates have advanced because of
the upping of
the discount rate and the
prime bank rate. Nonetheless, indications
are that sizable amounts
of money are around that will be
put
to work in the most
liquid

taxation

'/ tions

fact

Short-term

.^-Charge of the'.f Fund for Special' 'tions;- We are joined with these •'• • a 60-year span during which
</Oper atioris" and may appoint ad- countries in mutual assistance and he rose from a Grain Clerk to
/ ditional Vice-Presidents.
defense pacts. We have consist- partnerships of some fine old ChiThe Inter-American Bank will ently-aided each other in times of cago investment houses.
^Vhave full juridical personality and stress apa strain. The establish-Mr.dMillcr,. who has been an
be

The

.

,

will

amount.

longer borrow for long-term purposes, that is offer a bond with a
maturity of more than five years at a rate of
4^%, resulted in
President Eisenhower asking the Congress to eliminate the
interest
rate limit, so that the
Treasury will be in a position to meet
the existing capital market
competition. Savings bond rate ceil¬
ings would also be done away with.
1

e^ryone _and his uncle is in

,

up

sizable

•

.

Governments

on

By JOHN T. CHIPPENDALE, JR.

,em~
.

^

Reporter

n. of, the-centtirj^ Thomas Mil-

expanding
developing

and

Our

CHICAGO, 111.—Just before the

of the Latin
their economies. We believe that
Chicago Salt Company,
/countries will have one of their the- United ^States should • act
ecidea to take a job as a clerk
p nationals
following the day-by- promptly*- and show the other £/£ LaSalle ,Street (Chicago)
American- Republics that we have brokerage firm. He made the move,
:^ day operations of the Bank.
from
.■f:(The Bank's staff will beheaded their interest in mind and that we despite warnings iiom friends that
^ vv warnings
liiencis mat
v

31

Company

is

research affiliate

of

June

member

of

1

the

Joseph
New

A.

York

Zock,
Stock

Exchange, and S. M. Zock formed
a
new
partnership, J. A. Zock
& Co., with offices at 20
Exchange
Place.
as an

Mr.

Zock has been

active

individual floor broker.

The Commercial and Financial Chronicle

32

judgment and tastes, growth can¬
not proceeds at a uniform rate.
Setbacks must
be expected oc¬
casionally, if not from the va¬
garies of consumer behavior, then

3

Continued from page

Blueprint for Economic Growth
And a Public-Private Policy Guide
Nation has,

our

on

that

ences

long period of time, spending to
all intents and purposes the full
extent of our industrial history,

nomic
Nor

the average,
of goods and

growth

can

we

to

to

time

practical standpoint,
ambition

might

terms.

for

be

achieve

stated

the

From

a

growth
To

follows:

as

highest

average

description.

has

fluctuations/ within

narrow

been

more
Defines Employment and
recently. Still, recent rates of eco¬
Productivity
nomic growth have been substan¬
However, it is convenient to
tial.
Compared to the average
summarize and group all pertinent
annual increase of 3.7% for the
factors, affecting growth as influ¬
last 120 years, economic expansion
ences ph, tw a key economic vari¬
in the past 40 years has proceeded
ables: employment and productiv¬
at the average rate of 3%, making
ity, In this connection, the term
possible a doubling of our national
employment embraces both the
output every 23 years.
number of persons employed and
To
interpret the meaning of the average length of the work¬
these growth figures for the wel¬ week, and the term productivity
fare of our citizens, we must first refers to output per man-hour of
reduce them to a per capita basis. labor
employed.
Doing so, we find that output per
The factors that lie behind in¬
capita has also increased signifi¬ creases.' in !
employment are rea¬
cantly, providing the basis for
sonably familiar. They have to do
steady improvement in our levels
with changes in the size and com¬
of
living.
National output per
position of our population, with
capita has increased at an average the
independently arrived at de¬
annual rate of 1.6% during the
cisions of millions of people as to
last 120 years. And it is ah inter¬
whether or not they wish to par¬
esting fact that, unlike the aggre¬
ticipate in the labor force, and
gate of GNP, the average annual with the, success of the private
increase in per capita Gross Na¬
economy in supplying job oppor¬
tional Product has • not
slowed
it

than

an¬

the composition

But

Product.

of
e

m

aganst using them as a measure

improvement.

The figures have many limita¬
tions for these purposes. For one

thing, they take no account of the
increase in leisure which has been

achieved in

our

material

simple

come niore

although

as. our

economy,

and

ate

would

s

the present

total. If we success¬
fully meet the challenge of pro¬
viding the needed job opportuni¬
ties, we would have a civilian
employment of nearly 89 million
persons at that time. And, if gross
national
product per employed
worker increases at about the rate

needs

be¬

have

fully satisf|edf Second,;
the "most
meaningful

that

productive; on our free com¬
petitive institutions; and on those
actions and policies of govern¬
ment that affect our human and

more

economy's perform¬
in the long run is what it

measure

ance

of

an

for the satisfaction of
wants, Gross National

produces
consumer

Product contains much else.

If

material

we

It

judge our economic performance
by reference- to; the output of
consumable goods alone, we find
that it has been very good, indeed;
and of late it has been remarkably

grees of

satisfactory

40

of

In the past
the output of personal
consumption goods has been in¬
creasing, on the average, at the
rate of about 3.2% a year. At this
rate it requires only 22 years to
double the output of things on
which the welfare of people im¬
mediately and directly depends.
And in the years 1952-57, when
years

at

the

as a

measures of
the years in

the in¬
the

use

There

is,

that

recent

in

success.
-

the rate of increase in the

years
use

however,

measure or

of

physical capital has been
rapid than the increase in

well

the

at

play,

as

at the

the

whole

twice

rapidly

as

as,

employment. In view of this very
rapid increase in the use, of tools?

of 2.8%, the'output of per.sonal consumption goods in¬
creased at a significantly higher
; rate, 3.8% a year.
% Clearly, we are justified in takTate

,

and

other physical capital in our,

economy, it is not

about

two-thirds

surprising that
of

the

increase

Ing satisfaction in this record of in the nation's output of goods and
growth and improve- services in the past seven decades
ment. We must not, however, fall has been associated with improve¬
into the error of thinking that the ments in output per man-hour. Of
growth of our economy, and the course, factors in addition to capi¬
improvement
of
our
economic tal, some of which have already

economic
'

welfare

-

as

individuals

and

as

a

nation, are automatically assured
and that we can enjoy their fruits
as

On

kind

a

the

of providential legacy.
contrary, we know that

economic advances depend on en¬

terprise and work,
provement of skills,
creases

quality
,

in

of

labor

more

the

on

and

on

im¬

in¬

the

been

mentioned,

tributed

to

And

be¬

,

this result.

can

we

say

about the

pros¬

We must, of course, approach a

remain

a

hazardous art in

never

economy;
make




a

society.

We know
a

spend
comes

most

perfectly well

society, where

determine
of

their

their

according

free

a

to

peo¬

careers

money

their

and

in¬
own

achieving

framework

steady

economic growth.
the
for

most

favorable

and

costs and

that

clear

not

Government's

keep its

the

special

own
an

financial house
growing

economy

is

today, private demands
capital to expand productive

ours

facilities

thereby

can

better

the' per-*
the ex^?

of the past. To

fdritf that7- wd

en

understanding

of

ha nee

public)'

the* problems*

riding> /solution,-'and

- e n

1i

t*

s

broader* support* for

constructive
approaches to them, we can properly have confidence in our abili¬
ty to meet the economic chal-S
lenges • that confront us and. tot
realize

most fully the great po-i
tential for growth that lies within*
our reach.
•
■
*
m
Jk'S'

J. L.

Morgan Pres.
Associates?

Of TCA

ST. LOUIS,
Mo. —J. L. (Si)?:
Morgan has been elected PresM
of

Olive

TCA Associates

Street.

began his
Division
ritt &

Inc., 408;
Morgan, - who

Mr.

in 1951

career

as

Texas

Manager for King Mer-

Company of New York, was
and

Director? of

Corporation of America

and; its redesignation as TCA As¬

sociates. '.The
made*

President

make

tiori of America.

for

contri¬

excess of
'expenditures.

re¬

is

the

some

such

fiscal

an

excess

for

a

ahead.

On

the

They provide
circumstances

holding economic fluctuations
to a practical minimum. And they
offer
a
protection against steps
that would impair the operation
of our free competitive institu¬
tions and, in doing so, impair the

-

•

M.

Schweickart & Co., to member¬
ship in the Pacific Coast Stock
Exchange through the purchase
of a membership in the Los An¬
geles Division, has been announced
,

Thomas

to how best to utilize the fiscal

benefits., of

economic V growth in
that sustain and reinforce
that growth. The range of oppor¬
tunities

would

and

include

deduction

retirement

gations..

of

?.

construc¬

and

Federal

re¬

needed

debt

obli¬

Phelan, President
/ .:

Schweickart & Co., with headr^
quarters office in New York City,;
is

member

a

of

the

New

Exchange, American
Exchange
and
Chicago

Board
are

firm

Stock

of

Trade.

offices

Branch

maintained in Brooklyn, N. Y.

and

Hempstead, L. I., N. Y. The
was
originally organized in

omy

private sector of our econ¬
can make a signal contribu¬

tion

to

maintenance

under

This

the

will add

a

Faroll

of

name

new

member-,

ship to the Pacific Coast Stock
Exchange;; f Mr.
O'Hern
having?
purchased a Treasury Member-;
ship in the Los Angeles Division*

Columbia

of

price

stability and thus to economic
growth in the decisions it makes

sharing

the rewards of eco¬
nomic activity. In the past, our
consumer-oriented society has
provided wages that spelled
widening markets and rising stan¬
dards of well-being. It has also
provided returns to capital that
supplied both an incentive and a
means for
creating new job op¬

to

Provide

.

Training in
Economic Journalism
Specialized training in economic
writing and reporting will start
this fall at Columbia University's
Graduate«• School: of

Journalism.

The program

grants

,

The

the

P.

of the Division. ?

basis

budgetary outcome,'
prudent decisions could be made

on

James

.

To

a

tive, incentive-increasing tax

balanced

of

-

period

policy

lies

as

form

);?;

Brothers. >'

would

ways

for

election

government

most 'favorable

its

such

as

?

*

Coast Exch. Member
The

1924

by achieving
ceipts
over

of

:

*

firm

increase

bution to steady economic growth

strive

announcement was!

Morris M. Townsend,
of Townsend Corpora-;

con¬

are

cumstances,

such

1

by

rising. In these cir¬

and 1 to

sumption

right

not

best

We

formance

Stock

for

for very

the

encouraged by the record*

growth and improve-*
already achieved to believe*
that they can be found and that"

York

as

vide

the

What

it

in order? In

re¬
•

our

ment

is to

Requires Stable Price Level

but

are

on

of economic

contribution today to the preven¬
tion of inflationary developments

Stable prices are needed in our
economy

for

is

Federal

up,

.

we

by

But

mains fairly stable.

on

nu¬

more

Government Must Set Example

decade ahead?

and

ple

could

con¬

past performance
factors
explaining
it.

that in such

of our

indeed,
fully exhaustive inventory of the influ¬

we

also

less direct effects

or

This
prices'

average

that exert

programs

prices in ways that minimize in¬
flationary hazards.
; ? : •
-

pects for economic growth in the

much

growth
<

merous

and local as
Federal level. But

balance the

And it must administer

icies.

But one requirement is
outstanding importance, name¬
ly, the maintenance of a reason¬

on

can51

obviously?
reaching proper
solutions to these broad problems*
of public
and private policy;*
There can be no guarantee
that;
such solutions will be
found, but
depends

monetary and credit pol-' O'Hern, representing the firm of

inforce

of

while

should

but

for esthetic reasons
practical, functional
reasons.
They benefit not just one
or
another group in our society,
but the public at large. They pro¬

So

hind these few factors stand very
many others that contribute to the

.

have

availability' and question of this .character .with
the tools that* make caution.
Forecasting is bound to
productive.

policies must be geared to
of the economy,
not go beyond these
needs to the extent that price in¬
creases
are
encouraged. Its pol¬
icies in managing the large out¬
standing* Federal debt must re¬
the growth needs

to work.

*

make

can

credit

rate

means, of course, that some
would go down as others go

meet

important contributions in a num¬
ber of fields.
Its monetary and

role to

level.

Government

Federal

State

price

compla¬
to

of growth

success

Vice-President

vate actions that would be certain

stable

be

to

ability

our

rates

Fortunately, the requirements Sales lor
Slayton & Co. from 1953*
achieving- reasonable p rice until its recentabsorption into
stability are no mystery. The Townsend

in

ably

been

future

supplied,

for

of labor.

use

.have

them.

a
free economy, that role is
necessarily a limited one.
Much
It has recently,
depends also on the actions and
been estimated that since the end
policies of private individuals and:
of World War I, physical capital
groups? One cannot give a de¬
in
our
economy
has increased
tailed blueprint of public and pri-"
more
than

more

afford

about

cent

of course, no single
policy that will assure
a

eco¬

a year. But
tests ahead, and

severe

are

cannot

we

do to realize the

Government has

severe

sired

be

dent

reach?

our

and physical capital in
productive process.
We do

know,

we

consumer

there

growth potential that lies within

labor

our

annual

average

over

What must

dificult to make

even

the

a

level

productivity performance.

our

importance to the various

deed, it is

good in this respect.

increased

to assign de¬

elements in economic growth. In¬

creases

Gross National Product

resources.

is not possible

as

in

Happily, prices at

fairly stable for over

required in recent years. It also
implies that this great increase in
job opportunities would occur
without impairing the rate of ad¬
vance in productivity.
Growth at
a still more rapid rate would pose
a
still greater challenge, in par¬
ticular to our ability to improve

the individual worker

make

fast

gen¬

the

$700 billion, measured in today's
prices. I should call attention to

as

people

nomic reaction.

total output of goods and services
in 1969 would
be very close to

times

correction

find

achieved in the past 20 years, our

three

if

better

be

erally resign themselves to the
expectation that prices will creep
continuously upward? Such an
expectation would lead to even
more
rapid increases in prices
than initially assumed, and would
develop imbalances in our econo¬
my which,
while they might at
first appear to be a welcome ac¬
celeration of growth, could only

place the increase in labor force
by 1969 to about 15 million over

savings
and; investment
which
provide the tools and equipment

of achieving stable
growth in the months
years
immediately
ahead

economic

.

Aggregate GNP's Limitations

of

economic growth, should
misunderstanding
be

chances

our

labor

our

st i

achievement

the

for

see

the fact that such an expansion
ductivity are much more complex
of the nation's output, due in large
and, I fear, less well understood.
part to a great increase in our.
What we call "productivity" actu¬
adult population, means an aver¬
ally summarizes the action of
non-labor factors as well as the age annual increase in gross na¬
tional product of 4% a year, onedirect efforts of labor itself.
As
third higher than the 3% fate
an ; elementr in economic
growth,*
achieved since the end of World
productivity is dependent on the
War I.
state of the productive arts or
The achievement
of nthis * 4%
technology, as we commonly call
it; on the skills of the labor force; rate of growth would represent a
on the vigor of enterpreneurship;
very
significant accomplishment
in that if implies creating • new
on the qaulity of business, organ¬
ization and management; on the jobs in the next decade at a rate

ngainst using aggregate GNP fig¬
ures as the only measure of eco¬
nomic growth, and particularly
Of economic

the size

Thesis

thoroughly dissipated by what we
today? Who could believe that

potential for growth in
will be greatly en¬
hanced by a rapid increase in the
size of our adult population and,

other hand, the forces
that lie: behind increases in pro¬

of Gross National
I would caution

Creeping: Inflation

that

not

years

in

in

mis¬
understanding as to the impor¬
tance of a reasonably stable price;
level

Conservative

the rate of advance
productivity.

If there has ever been any

Our

the

On

So far, I have referred to eco¬
nomic growth without reference to

Rebuts

these

steady

force.

could

distribution

tolerably

a

we

holding prices

Clearly, we should strive
private policies affecting the

for

the

into

labor force in the next?

our

crease,
national

Predicts $700 Biiilon GNP in 1969

hence,

than

They are also heeded to
maintain, and even more so to in¬

decade?

these

rather

decade.

limitations, what
rate of growth could we reason¬
ably expect to achieve in the next

tunities.

down in recent years.

enter

range.

Within

in

of
economic
gains
speculative
bidding-up
of
the which, by helping to maintain
prices of existing assets. Expanded over-all cost and price stability,
savings and investment are re¬ will contribute to vigorous and!
C
quired adequately to supply with orderly economic growth.
tools the large numbers of work¬
: Although
no
single, definitive*
ers
who, as we have seen, war blueprint for achieving the de-1

investment

national

our
economic

better if

even

stable.

the outlook

or

have been

have succeeded

misjudge

for markets in the future.

eco¬

Furthermore, a reasonably
level provides incen¬
to thrift, and to the chan¬
neling of savings into productive

1959

portunities and for raising pro¬
ductivity. But the record would

draw strength.

we

tives

The spirit of

industrial develop¬

of our

years

ment

■

Thursday, June 11

.

stable price

businessmen

that

the current market

society.
rele¬

numerical

fact
time

from

will

every

express

in

factor

vant

pertinent
in a free

are

the

from

which

initiative from

of private

sources

enterprise, for exam¬ nual rate compatible with the
ple^ is vital to the growth and maintenance of our liberties and
cervices every 19 years.
improvement of our economy but, traditions, with the balanced de¬
It is understandable, I think,
like the
driving forces of life velopment of our economy, and
that our nation's rate of growth
Itself,
this
great
power
defies With the containment of economic
was somewhat higher in the early
numerical
doubled its output

,

..

(2652)

will be financed by
the
Clapp
& Pollak

of

Foundation, Inc., of New York.
In

;

announcing
the
program,
W. Barrett, Dean of the

Edward

Graduate? School

of

said:

Journalism,

of

"The

nomic life

man's eco¬
urgently needs broader,
story

clearer telling. We hope through
The Clapp & Poliak Foundation

to
help .bring
about
reporting of business, fi¬

Program
better

nance, industry, and government.
We want to train some of the

minds best1 equipped to
bring about this improvement.^
young

.Volume

189

Number 5854

The Commercial and Financial Chronicle

.

Continued from-first page>7.^
:

\

.

\ since the 1930s, when the General "lean against the wind," it can- argued
V'

.

IS Not 1 AO LSfA
n* W : iy".'jJ"'■ IHv*"• ';1 ' jm""
mwum

-

V;

-

m ww

" "•

•

til ;
■
ȴ

«HBV

Theory

,

.fl

•

JtlllllgM .'■■Til

.

■

^^

-

.

..

.

.

.

■

.,

.

mcludmg
aid. Americans
living" hv
+i? spent more abroad than foreignreal fnpomA
J™V
era spent m the United States. In
the iSnnl^finn t
I
^ f amounted
prahiv
consid- to $3.4. billion. Thus far, America
0§>% Thl AFT CTO6 fm.er1nG Sfh^ci^nnW
iIm"
Sancp nniL^uiiYu shipp!ng
gold holdfap? ?h P°lhis with pride to the mgs have decreased since 1950
the
power of from $24.2 Mil on to about $20.7
SSfirJ??^fo?; average billion—and by increasing Ameriiqrh

#

cq i

fnctw

fn

#

"

Se? if ?.
has increased
thi^rnn Jrferphie ^ and
*
thi
>impr0V^
1
Jhf rf™ 11n<;?me of one segment of
bepa?,c?U^w Was P°fslble.only
segments enjoyed
dine.: There

industry

17 million union

are

this

m

United

States

is, of course, a
creditor nation, but American in-

country, but close

,

a

r

0

1?llll0Ps of 1

Tht Vm£d States thus finds

.

S i dTh}e$ Ameri9ans heurFulf 311 the Position of a bank

on fixed
dollar pensions
annuities
Tt
has
nainfullv

which

has

mnnpv

to

its

used

Congress

can

order

depositors

ef-

result,

a

In order to put people back

suggested decreased saving, more
consumer spending, and above all
"deficit spending" by the govern-

ment.

+u„

of private enterprise
hour is bound to occur in an

economy,

slows

lessor Slichter rejects the possi-

when

business

is

booming

nomic growth.: He rejects price,
and wage controls "because the.
people would not tolerate controls in time of peace," and he.
feels unions cannot be curbed because "any effort to destroy or
seriously weaken organized labor.
would cause the workers to rally
to the support of the unions and:
make them stronger and more
,

ever."

than

aggressive

Hence,

and prices rise. As a matter of Professor Slichter concludes,
practical politics, Congress can there is little hope that th©
increase spending to fight unem- "creeping" inflation can be.
pioyment, but it finds it highly stopped for the next decade or:
inexpedient to reduce spending more. Nor is he particularly worto curb inflation.
ried about the consequences. The
,

income

Inflation

as a

Way of Life

income

fixed

of

groups*,

pensions, and life insurance pay-

With monetary and fiscal poli-

ments could be adjusted auto-*
matically to the rising cost of
living.
Interest on bonds and
mortgages could be increased to,.'
depreciation of the dollar? Given say, 5% or 7% to compensate for .
the choice between the postwar the gradual depreciation of the,
policies of France and Germany, principal. Professor Slichter.
must we follow the French ex- seems to forget entirely that the
ample?
difference
between
"creeping*
Some of the leading American and "galloping" inflation is chiefly

cies

The theory made sense during
the depression years. Since then,
however, the world has changed
compietely. At home and abroad
we are confronted with an explosive population growth. Breathtaking technological changes call
for j

i

1958--* bility of curtailing., demand betakes many months before1 cause he believes that an effective
spending actually begins credit control would retard eeo-«;

little

private individuals ing

"theT tendency for

outrun output per man-

and powerful trade unions." Pro-

additional Moreover, while Congress is always willing to stimulate business
capacity and with the population through more spending, pleading
more or less stationary there is Keynesian economics as justificalittle likelihood that the demand tion, it has shown extreme ref0r goods will increase sharply, luctance to reduce public spendneeds

fha^

wages to

33

more

caPital.sinc5 it has-excess plant

ment.

r°n Ame"cans depend vestments abroad consist chiefly
H
°n ?enS10AnS i° «nJlneS,i
t01 ieSf anw
n
Mpii
?
long-term investments which canm* L,
. J:
2S? vL
former
t
while the
Hi nf
$16 Million which America owes
"Pr*
Advisors, put it: to the world are, in theory at
HwaHA has
^ -ire paS#
tJ' P^ya.blc on demand.
living

still fective.

country,

foreign owners just as an indi- Idle savings are accumulating, in
viaual can draw on his checking turn, causing chronic unemployaccount, have increased since the

w

SEShS

this

ln,their standard end of 1949 from $7.6 billion to to work, Keynes and his followers
suffered an actual de- almost $16 billion. On balance, the

I
ofhvmgor
of nvw

members

in

These foreign short-term balan- and corporations will have no
CfS' which can be withdrawn by way of investing their savings,

^

+

purposes stop

nesian arguments ran as follows: to percolate through the economy,
The population growth has slowed and by that time the deflationary
down, there is little demand for trend may have given way to
foreign investments, and domestic renewed inflationary pressure,

short-term' indebtedness. As

cas

not for ail practical

conditions of the depression yeays. but It
Twenty-five years ago the Key- public

tette^n

nt

the

base their economic theories and spending when business
policy .recommendations on the down—as Congress did in

0^

KCflVIAlfllC wDlIV

«««/

published,

are no more

economists

.—mwrnumammw- wmmmmmj

.'

first

was

ing many of the Keynes, includFiscal policies
followers of Lord most influential the inflationary storm.

•

-m

(2653)

rQf„

capital investments, with

ineffective to curb chronic
inflation, must the United States
adjust herself to a progressive

oome ox ine leaaing Ameiican

in„

ohnlosical. As lone

as

the

mass

rate of saving inadequate to economists counsel that the na- psychological. as long as ine mass
squeezed the iivine sLnda^ of S now hooes tS the deS finance the huge defense spend- tion accept inflation as a way of of the people feel that price ia.
school
t e a c her f
government tora will not suddenly <terand ing and the demands for economic life. Some claim that America creases are a temporary phe^:
i teacners, government tors will not suddenly demand growth throughout the world, cannot have at the same time a nomenon, inflation will "creep.*
and

clerks, and others
flexible salaries

low and in-

on

Sin pa

1941

inanc

mnrf <**<*»

cash. Thus far, the situation is not
The

sprions

mnrA

Lml suffering 5
human rSi has ?
been

makp

world

is

likelv

not

visited to start "a run on the dollar,"
Americans by the doubling and a curtailment ot either for-

upon

«K-MmoCian»

iOQri?nty

p„nnn

cannot nave at tne same time a

government

admits

.e leading
Keynesian econo- high rate of employment and a
once tne government aamit».
however, and self-styled stable dollar, and, argues Pro- through the measures suggested
«uu
' ic» 4>,rr.,'
i„nj
y
~
ut '
hv
Professor Slichter that infla-*

more serious, ine world is not likely mls^s

cn-

advtate

to

he

l?me T?^7r2 le™l%?Zg

tohaf^o^wa^o

empTo™?nT"Pr'CeS tha" by Un" vSVeLt^—tur^ttfba": remedies which Keynes suggested to
everybody will scramblefcsr:
}
SrS mts M
durmg the dePresslon» namely greater injustices even than a safety, and inflation Will start t<>
The High Cost of Prosperity
I surpU.Tut foreign aid can- "TtWmiet6 whh m*2 » ^ ^ ^ ^ *»*>•.:.,
:
, V Moreovp the United States has; not easily be stopped without
^Yans whoS ^ ®SSttSMtai
The Koad to Economic Sanity
^r
The soluUon to the nation's U1S
personal savings (savings denoshs' norts
neL^salw t?
and elect and elect" highly expe- ing up prices, because a restric- —and possibly the key to Amersavings bonds^ife insurancepol- torefgnsoureefofraw materitheir demandffofhiler tive £edi} K"cy fsur/a/ a ref:
'orllSatton^^"but
icies
Justlty tneir demands foi higher sonable stability of prices would acceptance of inflation, but in a
emp oyment.

into

are

etc 1 have denreciated ahont

AmArican

hv «ia

ak hpaHaH

Aeon

biliion^^VToM^=

$15^

ran

tard economic growth.

^^^d^inSTniS tion forthe boefitof the few

an

coods

s

and

halancp

navments

of

ganea

Approximate

deficit,

will

Rising pri:es, however

Increase

in

SteteTto

Untted

e^xX

Indebtedness Since End of War

and

maintain

henre

her

YSeral

as

Corporate debt...— 170%

Reserve Chairman Martin warned,

Farm debt

there

250%

State & Local debt.. 350%

debt
470%
Consumer debt— 500%

-

i

.

,

.

,

"a

the

growing dis-

future

of

the

dollar," and this disthe danger of a

increases

"run"

oossible

.

.

,

abroad
over

American

; trust

'

«n

is

trust

"i Mortgage
■:

Pei^2i!aJ..1.I?deb.<ed.Iiess.ISfJI5,n

i
from $60 billion to almost $250 bil-

"Psycho-Economic" Diseases

Two

Wmteg'dema'nf'/or'homls'cire
ofher

Md
«nn/ic

»rosnored

J®

we

AmArino

borrowed

on

-.

Have

-

credit since the

w

manev

•

.

j

relied

declining

America's
TOns'umer baa"b -

durabfe

cknr+

Tn

much

too

y*
on

end of the war?.

There is no ready answer to this.
all-important question. It can be

*ar more deep-seated. As a

are

nation, America suffers from two
.

<x>

'

.

.

•

,

YeTuYct

e eono

coSumpUon"

public and private debt

£e

not

°

cessiye. But these statistics make

SE^Ste&Tnd li.Yl govponderables. Stqte and local C"
beginning

are

is

since

tne war,

as

'•

and of declinand

the

throueh

cured

ideas

nation
ills

monetary

dem^recy

danger

tion
0j

Maflo^iY suDerfSal
and

Srouns

as a

—

not

the various

ho hated

acrteulture

if

laboi

busU

The experiences of the past ten rising faster than productivity.
Both must be stopped if the dollar.
that inflation is^no sure road to is to be saved. Government subeconomic growth: the dollar has sidles, waste, and public spending
depreciated 30%, yet economic on ''social priorities, over-exyears' moreov®r' indicate clearly

groups
agriculture, laoor, pusi growth has been less rapid than pansion of consumer credit and
ness, politicians—who claim to be during the post-Appomattox era, periodic excessive capital invest-,
°PP^sed 1° inflation, but actually when prices declined.
ments have inflated the demandL

Economic growth depends above Meanwhile
M
leased Production, pustang up

hefr personafLtere^
T.

Lincoln once said that America
murdered; it can

ca1^ never be
commit

suicide.

We

umons

in

turn requires more ma-

chines. In order to buy machines
peopje must save part of their

have fn

„

^

anfJ

he

wjiiin^

tn

invest

aucuvuy

have

beea

=fa^(«tt«n.
uutyui

.

which

,

peunuicu,

been restricted artificially,
paired competition has made foe

high profit margins, while feath^

The selfish- 1heir 'vings Yet the same "lib- erbedding and planned obsoles-,Plin<?rity groups parading erals„ who Iament the fact that cence are adding to total cost. .

reached this stage.
behind the cloak of

a

defunct

eco-

fh

TInitpd

states

is

"omli $eory threatens 10 destroy hind in the economic

the dolIar'

No Easy Economic Gadgets

falling

race,

be-

advo-

eate less work-a 35-hour week,
longer coffee breaks, more vacations, and a curb on technological

'

The Orgy of Public Spending

In speaking of the fiscal poltcies of the Federal Government,
one must distinguish between na-

- and less saving, and
tional defense which in itself is,
Here again we they discourage investments by not likely to unbalance.the moneare the captives of wrong eco- calling for more taxes and lower tary stability; so-called
national
nomic thinldng. Not only have profits. The lessons of recent his- defense" spending which actually
we inherited from the depression tory seem to mean
nothing to represents either waste or subst¬
years of the 1930s a strong infla- them. While Britain went all out dies for pressure groups which
tionary bias, we have also come after the war to foster welfare hide behind false labels, and
to think that inflation and defla- state economics,
Western Ger- finally, spending, m the name oC
tion can be cured through mone- many held mass consumption to
social priorities,

stands thing about it?

of' deteriorating

government are used increasingly to exploit the na-

tne rea-

to

Why doesn't anybody do some- progress

which the instrumentalities of

they have

be" aPeYirYtrinfrat;on "^Buf^the
„flp^pH ^nns finn nf thYmnntrv

can

™t0°a ^ure°aucaa.y.. ulFdef

run

undoubtedly

ana even

mlc

'economic

.

nP

f-

d fiscal manlpulaUons.

.

.usaf1<:a' there is

continue to borrow

p

(2) American

":culties> cpipo-

rate indebtedness
lu

to

irFces

tee

ex-

stable or even declining prices
Since the end of the war, Amerwiu cause chronic unemployment, lca has suffered from both "de-;
ment
dmg
d easy credit provided, of course, America can mand-puU" and "costpush" infla-;
whenever salef. arelagglng- "A1" put an end to the wage-price tion — from over-expansion of
most eYe70ne a.? Pressor Han- spirai.
credit and from wages and profits

only

f]jePflcAc-

considering the growth of national and
personal income
the increase in
is

economic

fiscal causes alone; the real causes

showii statistically that

emments

change in public
Actually thinking: Stop exploiting the na-

wages by the Keynesian theory'produce unemployment and re- revolutionary

h^ tacreased States
increase her Yxnort that higher wages are needed to
at
annual rate of about 6%^ ^us,?Lreisdangerthafthe
Sess^wScT oppYseY taxation
while the outDut of
Pus',ness which opposes mnauon
services has gafned only 4/c.
cont"nue RisinrnrLs howeYer in the°7 b"t calls for more govomy 4%
contuiu;
public and private

whole for the benefit

organize(j minorities.

minimum and devoted all her
Since' 1955, defense spending
energies to the reconstruction and has increased by about $5 billion;
expansion of her factories and non-defense spending by $10 bilSince
much
of
the
postwar of
his
ply of credit, the Federal Reserve mines.
The results
are
well- Ron. Of the $5.3 billion increase
boom was financed with the help Keynes warned: The ideas of econ- can
supposedly keep prices at a known: within ten years Germany in the 1958/59 budget, only $500
of borrowed money, and it is un- omists and political philosophers, more or less even
keel, while the rose from complete devastation to million went for national defense
likely that we can continue to go both when they are right and Treasury, by increasing and de- become economically
the most despite the Sputnik scare, all th©
Into debt at the same rate as we when they are wrong, are more creasing taxes and spending, can powerful nation of Western Eu- rest went for "social priorities."
did in the past 13 years, how are powerful than is commonly unsupposedly assure maximum em- rope overtaking England in most Non-defense spending costs the
we going to sell all the goods and
derstood.
Indeed the world is pioyment. All this is largely an fields.
taxpayer currently more than $35
Bervices our economy can pro- ruled by little else. Practical men illusion, even though most college
Another defeatist argument in billion a year; more than total
duee?
of affairs, who believe themselves textbooks still
proclaim it
as favor of accepting chronic infla- Federal spending,
including naera!

government

selling

long

nas

difficulties

Defunct

a

term bonds.

Irl

the

Economic

Theory

concluding paragraphs
General
Theory,
Lord

tary and fiscal manipulations. By
raising
and
lowering
interest
rates, and by regulating the sup-

a

.

If the Federal tion is based on the assumption tional defense^ just prior tot the .
that the American people are in Korean War.
effect neither willing nor politiIn
s r 0 r t
the mushrooming
"prosperity" which, should cause omists." The statement explains ing prices, it would produce un- cally able to prevent national
growth of public spending which
concern,
namely the fact that to a large extent what is wrong employment and such ah outcry suicide. In recent articles in the
jv endangering the nation's ecosince 1950 the United States has with America today.
by labor and business, that-Con- "Chronicle" and elsewhere, in- nomic stability is not due to the
suffered an almost constant defEven though economic condi- gress would threaten to intervene, eluding the New York "Times,"
v
■
—
— o/t
Icitrin the balance of payments, tions
have changed completely While the Federal Reserve can for instance, Professor Slichter
<.
coniiiiuea on page ov
ane
1

^

Balance

oi

_

.

.

payments Deficit

There is another aspect of our




to

be

quite

exempt from

any

intellectual influences, are usually
the slaves of some defunct econ-

economic truth.

Reserve were to curb credit and
raise interest rates to prevent ris-

,

04

The Commercial and Financial Chronicle

I

(2654)

Continued from page

lish minimum standards

33

Retain to Economic

Sanity

According to some esti¬
mates, sheer waste, inefficiency
and
duplications consume more
than 10 cents out of every defense
dollar, or about $5 billion a year.
money.

the

of

Air

new

Force

originally put at
$139 million, its final cost is likely
to be $260-$300 million. The irri¬
gation system for the 18-hole golf
course
costs the taxpayer $118,was

house

the

by

cost

an

of

j(the latter be¬
of

houses built under

one

to

1

cut

portion

major

of

increased 50 to 100%

of

the

50 state capitals, and of
city and county.
America
Stands in danger of deteriorating
from a "democracy" in which the
people rule, to a "bureaucracy" in

which

the

-

people

powerless against

have

become

government of¬

ficials.

faster since

is to blame

the
building
construction
firms
and

More
Waste

is

serious

the

than

growth




whom

maintain

effective

interests, all
some

lobbies

in

of

the

Wash¬

ington, dispensing favors to mem¬
bers of Congress and government

of

competitionv

a

feasible

-Ipflatjbn ^ ^ V conspicuous consumption, a- gad-;

get-laderi Christmas tree, which>

great dqal of

.

Actually, American, industry;,iri; demanded; and .obtained another",
cost of living during the;
general and organizedlaf).qr ?are -substantial wage. ...increase,
and.
preceding decade, with full allow¬ both
pursuing a fundamentally Within a few months, the steel,
ance
for actual improvements*;
unsound wage "and price-'policy at. industry
admitted defeat/" ancl,
Provisions of this type, if adopted
the expense of the consumer arid prices have been going uprever,
at the end of the war, could have
the nation as a whole; not to .men- since. ;^;r:,
v,
.rr.:v
saved the American home owner
tion the one to two million weak-*' - Business and union leaders ob-(
upward of $30 billion, equal to^
ers who have been
priced out of ject to the charges that industry
the
value of about two million
the labor market. Both-base their is often willing to grant- even un-£
average

homes.

reasonable wage increase as long,
asdhis will purchase labor peace,
and the cost can be passed on. ,tcr,
the; consumer. Yet how else can.
one interpret a statement in the;
1959 bargaining suggestions issuedf
by the National' Association , of;,
Manufacturers that isince union\
leaders must produce results in
order to keep their jobs business
should "take into account (the
union leaders') neck-and/or face-,
saving devices.";.'-i.jp/
'
v.
~

on a fallacious premise,
namely the notion—accepted even

reasoning
The Futile Farm Aid Program

President Eisenhower — that
long as wage increases are
by increase in prqdiictivity
; there would be no inilationary effect." Man-hour productivity statistics, as a : recent
Labor Department report emphasized, "do not measure the specifier
contribution of labor or of capital,
or of any other factor of produc-:
tion." They "reflect the joint pftion and greatly increased yields,
f'ects
of ' a • large
number
of
„
support prices have been raised
.;
The Reuther Plam
. v
k/
from 52-75% before the war, to'* separate, though inter-related inas 1 technological ; > Walter : - Reuther's} suggestion
75-90%. The American people—' fluences,4 such
rich and poor—pay three times improvements, the rate of opera- that the auto industry should re-<
for the farm
subsidies—through tion, the relative contributions to duce prices was; in. part at least,,
taxation, through higher living production- of plants at various a clever political gesture. Yet it.
cost, and through
international levels of efficiency, changes in represents basically sound eco-,
complications caused by the dump¬ integration, the flow of materials nomics and good public relations.:
and components, as well asythe- "Neither stockholders nor working of farm surpluses." Yet the
skill and effort of the work force, ers / . .. have a right to insist on
billions of dollars do not go to the
needy farmers, but to a relatively the efficiency of management; and levels oi income through inflar
few large enterprises, namely, the the status of labor relations." Yet tionary prices that deny to other
their full : and proper
top 12% of the farms with annual despite this multiplicity of factors citizens
union leaders insist that'any in-* equity in the national product.sales of more than $10,000, which
crease in productivity 'should reYet this is exactly what has haPaccount for 55 to 60% of market
since
the-' war.
While
sales, and most of which 'could sult in a corresponding- increase pened
in wages. On the other and, when- labor's
share in the national
operate
profitably
on
basis of "
world market prices. Every year, the
government
recently - an- product increased, as union teaa-:
bounced that man-hour - produc- ers
the press publishes lists of large
have- often /and proudly;
mechanized
f arm
enterprises tivity in the steel'industry: had pointed out, the share of fixedby

"as

measured
.

.

.

.

during/1957: and 1958,- income groups has declined. AreSteel'^nd steelworkers the union leaders willing, to halt*
that
this
had
"no: this progressive expropriation of ;

announced

a

meaningful significance" as far

determination

wage

cerned

was

the fixed income groups, or naustthe "government acting on behalf
of a. justifiably aroused people"1

as

con-

~

; If the entire increase in earn: intervene? This isthe
ings, due to greater productivity, J®suf to be.deeided in
were to go to labor, prices would--tSteel negotiations.

the.pres

have

rise

to

The farmer, who has, become ac¬

evidence

customed during the past ten years

since

to hothouse

protection, should not

be abandoned

abruptly to the cold,
While
longer
purchase farm surpluses, and the
winds of free competition.
the government would no

to "pay

the

men

or.-.

Let

•

. s

-

technological adr
alLfor^
in relation to let sales tlimi they price' reductions."
Labor cost-—
were
during wie last period of wages and fringe benefits—shall
prosperity, the| 1920s, the profits not be increased, provided it has
the

that

war

corporate ^profits
been'smaller

nave

tivity

,

due- to

varices, shall be used above

of
concerns

officials, and drafting "just about soil bank contracts would be per-, policies4 affect fprices and /wages
item" of the Congressional mitted to run out, the government throughout
trie; economy, have immediately reduce prices sub^}
housing bills, as one member of would stand ready to pay direct been very substantial. - It is "thus Istantially. This would benefit thethe housing lobby recently ex¬ subsidies up to $10,000 per farm
not
surprising/that unions and nation a? a whole by lowering theor farmer
based on the average
plained with pride.
Congressional | committees
com- cost of living. It would help labor
income during the preceding ten
No one wishes a return to ceil¬
plain about "administered prices." twofold by raising the purchase
years—provided, of course, that
ing prices and rent controls. But
Wage increases; agreed to. by the power of the wage dollar and byj
he tills his land.
The subsidies,
it is an established principle of
leading industrial companies af~ increasing job opportunities, j It>
however, would decline by 10% feet wage standards throughout would stimulate exports and-thus,
law that the government has the
every year, and would end com¬
the economy, men in those areas strengthen
power
to fix the terms under
international confiwhich the people's money is to be pletely after ten years which where
man-hour
productivity deuce in the dollar. Above all, it
.....

every

lic

government

fantastic

of

most

used for subsidies.

Subsidies for the "Un-needy"

price

the Administration
and;
women
who invested their -sav-/Congress -declare
it to bevthe:
ings in the new—machinb'sf/Tt policy :of the United States :tnat,would be equally unsound,'.if in- henceforth the fruits of scientific
creased profitsfwent entirely to and ; technological progress; shalf;
the stockholder, since this/would a*ccruertq the people as a whole;
probably
leadjj'to a dangerous not merely to a small group of'
for the fleecing of the farm output completely can the
over-expansion|bf plant capacity: union-,-workers. ; Higher profits,;
the benefit of small inflationary pressure be removed. While there is some; statistical resulting from increased produc-;

trades,

every

"Cost-Push"

There has been

declined

above all real estate

concerned, but
it illustrates 'the arrogant con¬
tempt of "public servants" for the
taxpayer. What is true of Wash¬
ington, is equally true, of course,

$10-115/.bi}Ii{>H,^ oWrfashione'd

removd/,one/bf the Trie American automobile, a. nep-v

■

The
.

iv

both U. S.

on

are

:

(after

powerful inflationary forces, -essary means,
; transportation,
;
' has been made .into a symbol of;

eral

man

Congressmen

most

year

,

by

would

the end of the war than the

University professor receives $6- people for
$10,000 a year, an Iowa Congress¬ minority
groups:

©Qfr—-part-time!' This sort of nep¬
otism may be "legal" as far as

reduced

be

of the four

which have received"huge
gen¬
price level. The cost of hous¬ amounts, in some cases more than"
a
million, in subsidies, while 2.7
ing has risen 50% faster than the
cost of living. While housing used million small farmers receive an
average of less than $110.
' '
'
taxpayer on an average more than to require 25% of the income
$160,000 to maintain a Senator or of a typical middle class family,
Moreover, of some 250 farm
Congressman in Washington. The it requires 30 to 35% now. While products only 12 enjoy price sup¬
people are entitled to know how it " was
regarded
as
normal to ports at minimum levels, and three
their money is spent.
Yet the spend two annual incomes on a —wheat, cotton and corn—account
Senate voted some years ago to
house, it now requires three years' for 75 to 80% of the surpluses
hide its expenditures behind
a income. Direct and indirect gov¬
which cost the American people
cloak of secrecy. The chances are, ernment subsidies may have pro¬ almost $1 billion a year in storage,
Of course, that Senators have no duced
more
housing—and even interest and administration cost.
more scruples than Congressmen
that is doubtful, it has certainly
A Sound Farm Aid Program
in channeling: public funds into not produced cheaper and better
the pockets of members of their
Only by freeing farm prices and
housing. Government policy alone

put his son, a college student,
the government payroll at
$11,-

r

which

building codes. Con¬
could also require that all

reduced

,

—

While1 the average Iowa

general. This does not mean that

being

for

.

by the Administration and Con¬ pressure groups—have been able
to convince Congress or the White
gress: the demotion and possible
discharge of government officials House that their personal gains
and officers
who are guilty of are synonymous with the "general
waste of public funds.
"v,.-.---' /-v'i'
Unfortu¬ welfare."
nately neither the Administration
The High Cost of Housing
nor Congress can tackle such a
The two outstanding examples
task with clean hands.
Can the
fantastic increase since the days of government largesse at the ex¬
of Coolidge- and Hoover in the pense of the general welfare are
cost of running the White House the
housing
and
farm subsidy
really be explained entirely by schemes.
Depending upon which
increased functions? How can a index one uses, building cost has

families.

those who

subsidies

„

the people thus finance dividend
ity," because government agencies
can
conceal
their spending
by payments fo a relatively small
number
of private
stockholders,
classifying it as "secret."
No doubt, the elimination of subsidize luxury travel, and un¬
waste and duplications would suf¬ derwrite the "featherbedding" of
the stevedores. Sugar, oil, lead and
fice to balance the budget.
But
and many other
this would require drastic steps zinc interests

himself requires 11 mess attend¬
ants in his private dining room?
Last year it cost the American

and

v

its

cabinet member demand economy
from his subordinates, when he

eco-

competition as such has disappeared; \ the rj form 'merely /has
By eliminating waste and stop- changed. Style and quality comping the subsidies to the "un- petition, supported by high-pow-.
needy," the federal budget could: ered. advertising, have*,,replaced,

standardized
gress

subsistence

into other occupations grad-

year.

ing another striking example
"privileged class" legislation)

been a strong bias among
nomic
theorists, politicians

Large scale

for

should be provided with

cash

estimated

date.

aid

Thursday, June 11, 1959

business
leaders
against
price
competition and lower prices iri

ually

$1,000, and thus costs the Ameri¬
can people about $1 billion a year.
Congress could obviously restrict
FHA and GI loans

the

an

The inequities of the farm pro¬
lending al¬ subsidize, to the tune of $3.5 bil¬ gram are even more obvious. The
most in half since :1953, yet the lion, the construction program of program was adopted during the
years
as
an
"emer-,
number of its employees has al¬ private shipping lines—the profits depression
most doubled. ' And some of the go to private, often very wealthy gency" measure; the heavy spend¬
stockholders—the stevedore union ing, however, occurred during
worst waste, one must assume, is
postwar years of unprecedented
never made public.« The Control-1 prevents the efficient use of costly
equipment, partially fi¬ prosperity. Even though unit pro¬
ler General complains that his of¬ loading
In duction cost has declined sharply
fice is "unable properly to dis¬ nanced by taxpayers' money.
the name of "national defense," since the war due to mechaniza¬
charge our statutory responsibil¬

has

certain

a

resettlement

.

labor-saving devices are discussion
whether
prices
arg has developed into the most seri-»,
non- to be employed to keep down cost; pushed up by wages rising faster-:cus financial- burden vfor,v: the.
defense spending does not aid the in other words outlaw featherbedthan
productivity
as
industry average American family.
-v. ^zg
"general
welfare," but instead ding by employers arid workers maintains,
or : whetheiv' wages-. r.The; steel ...industry would-urn?^
benefits
primarily
powerful on government-subsidized hous¬ "chase
rising prices" as the qnions; ^ou.btedly be happy to strengtrienj
minority
groups,
such
as
the ing. Wages should not be increased claim. According to the
AFL-qib; .its competitive position, at .home-,
Veterans and the shipping inter¬ if they have risen 50% faster than
for instance, "unit labor cost" in and ,abroad
by keeping prices,
ests, magazine publishers,
TVA the cost of living during the pre¬ the steel industry
increased only. stable, ^aqd .under the statesman-r*
and the oil and sugar interests, to ceding decade. Profits of contrac¬
34.7%
between
1947 - arid/'i057, rike leadership of Benjamin Fair4.
mention only a few. While the tors, builders and suppliers should!
while steel prices rose 96.3-%VAc- dess. .steel prices were cut in 1948.
postage
of the
"average
Mr. be restricted to a fixed cost-plus cording to swom testimony- of ;to stem - the ;then -alarming inflaf/
American" was increased by 33%
basis, with the government super¬ U. S. Steel Chairman
Bloiigh, nn,.ternary trend. What happened?:
last year, the most affluent maga¬ vising cost. Finally, Federal sub¬
the other hand, steel, prices* rose-'Neither Congress nor the Truman,
zines continue to pay only part of sidies should be denied, whenever'
about
160%
between.-4 940^ and,, Administration .-gave the. rnov,e.
the mailing cost—an annual sub¬ the price of the land has increased'
1957, while wages increased'25q%, whpleheartcd support. The unions
sidy running into millions.
The more than 50% faster than the

ly/ the

000, a comfort station near the
parade ground $53,000. There are
22 garden pools with underwater
lighting. All this in the name of
"national defense." The only thing cost of the Veterans Program has
risen 25% in about five years, yet
missing thus far at the Air Force
Academy is—a landing field! The the major portion of the current
Armed Forces spend $30 million cost of $5 billion goes for disabil¬
ities or deaths not connected with
every year for the maintenance of
More than 95%
some 60 empty, and largely obso¬ military services.
lete defense plants. Two hundred of the American people are taxed
to subsidize by about $90 million
thousand dollars
are
spent for
the
remaining fewer
publicity junkets to Florida. Nor annually
is the "defense"
spending con¬ than 5% who live in the Tennes¬
see Valley Authority region. While
fined to the Armed Forces.
The
International Cooperation Admin¬ the taxpayer is called upon to
istration

after

move

average

non-defense spending in the form
high cost of national defense, but
subsidies and
public works.
the ability of powerful pressure of
The Constitution empowers Con¬
groups to raid the public Treasury
for their own benefit, and to the gress "to collect taxes, duties, im¬
growing contempt; of politicians ports and excises" in order "to
and government officials — from pay the debts and provide for the
the White House to the last school common defense and general wel¬
board—for the people and their fare of the United States." Actual¬

cost

pre¬

farmers

interests—raises

The

a

building codes—only too many of
them designed to protect special

It Is Not Too Late to

Academy

as

requisite for housing subsidies.
The present chaos of conflicting

.

.

money

Certainly pub¬
should not be used to

the detriment of the

people

as

a

whole, and Congress should estab¬

would

give

the

farmer

time

to

adjust himself to the free market
economy.

No subsidies would be

paid to the purchaser of farm land

that the would help to break the spell -bf
defunct economic theories, that
passed on tofthe consumer.
lower prices mean depression. »lf
Since the depression there has the present wage negotiations in

cannot
entire
be

be

cost

increased,
of

so

Higher wages must

vr

Volume 139

Number 5854

.

The Commercial and Financial Chronicle

.

.

n
35

(2655)

the steel

industry do not result in
substantial reduction of the steer
Price-—made possible,.*, through a

Continued

a

stabilizations
the

of

American

the

have suffered
nomic defeat.

!%Can

I

v

as

cost-r-

.

eco-.

Steel

;•

Economic Ills?
these

By JOHN BUTTON

"impractical??.;. For

Think Like

• /, s :
Utopian

suggestions
a

decade

The

T

who

men

have

Customer

a

succeeded

vestment salesmanship—when you
have an order fill it.
This type

American

,

people

few years ago,, a.
highly regarded ers, tin vestment
analyst s y» and
Swiss
banker - economist ; w h o.
judges f of r security values, have
knew
America
well,* concluded: fallen flat as
investment sales"A crisis in America
...
. could be
menk One of the reasons for this
avoided on the indispensable con-:

ditioii

and he

to this salesman be¬

came

the

government

inability to project -■friends who do business with this
their thinking into the conscious¬ securities man.
He had received

re¬

nounces its fear of the public
finds the courage, to
express

and

ness
of i their
customers. ■ They •mail describing tax-exempts and
and think
like-^professional investors •he placed an order with the sales¬
act upon its convictions. "
This," in; and
they talk the same way/* The man for forty bonds and yet the
the democracies of bur time, seems
average man and his money does salesman told him he should buy
to me no longer possible. -The ar¬
not
think like
the
Wall
Street ^only ten.
:
rogance of the employers, and the
professional.
He
thinks
like
a
This is thinking like a customer.
trade union leaders' greed increase
businessman, a doctor, or a rer This salesman is trying to build
with each inflationary wave.
tiree,-He • simply wants ' to make "a
The governments are but obedient"
group of satisfied clients.
He
money t by •investing
his money. knows that the men to whom he
slaves of the "inflationists"
." If
.

<

.

the public lacks

should

rule

.

He wants certain things and, un¬

insight, those who

it lack

less

'A'//;

courage.

investor's

an

HEAL

SONS'vfoi"-'investing

REA-

now
•

sells bonds in this particular

group

TALKERS.

are

enough to know that should his
veiling the fact
stood,, team work between invest¬ new client meet with his friends
living beyond ifs".
ment salesman, and client is1 ;not the
first thing he will say is, "I
means
;
Crises come precisely^
just bought some bonds from your
when—and because—^-the mass of •possible1;

The

inflation

is

that America is

.

men

) Is it "Utopian,'* "politically im¬
possible!' to awaken the American
people to the* dangers? Certainly,
there

is

r.;,rr:.

,

will not believe in them." ' 7 "*

'

For Instance

,

•

■■

Y

friend

down

at

Jones

Com¬

and

Here 'isr a'- sample of the proper pany.". Then he, will be asked
appraisal of a; certain type of what he bought and he will say,
cliefttV psychological investing "I wanted to buying $40,000 of

,;

needs;1 Ohe

nothing: "revolutionary"
here,.

of

started to sell

about the remedies suggested

yet they would suffice to restore;.,
the American economy to a sound
basis. Nothing is
^politically im¬
possible";: it merely seems so .until

few very

a

has

wealthy

Podunk 4.y2s but your man said I
should only buy $10,000 of them

bonds. ' ; Most ,.and he would get some other sug¬
new to the gestions
together." If our sales¬
tax-free bond type of investment. man had sold him the forty bonds
They 'dre in the main retired busi¬ he could be quite sure that some

mem

tax-free

some

of these" ihvestors

•'who

nessmen

it has become reality. Who would
have thought it possible just

salesmen

our

are

their

spend

days

of the other customers would have

jumped all over his new client
a
chance to
some friendly cards nvith
display their
togCther,'rOr decorating the.offices newly discovered knowledge of
erhment could jail a retailer'for
of - stock- brokers.; ■/*-V.
^tax-exempt bonds and would
selling drugs below the monopoly
:•
Slowly this little group is ex¬ havp told him, "Looks to me like
price fixed by. the manufacturer;
you put a lot of money into that
or fine
a
farmer for. producing panding and the salesman who is
one issue, they are not even
wheat on his own land and
rated,
feed^ hapdlipg .this business is carefully no market to
speak of, small issue,
ing it to his chickens; that a gov¬ leading tljese investors into such
I hope you make out all
right."
ernment agency could compel a. areas M..Uqnd buying as geograph¬
V

either1-sitting
^30
Gov-, elub;; fAaying

that the American

years ago

around

at

beach

a

ical 'diversification (don't buy all
blonds in one state, ;one town,

corporation'. to; negotiate with the
unions before

yopr

ficient

Or ' ope .county);

installing more ef¬
machinery; that millions of

spread out your
inaturities (so that you will have

Americans could buy houses with

virtually

down payments; that

the government would take more
than 30 cents out of every dollar

short-term

some

want

earned

no

if

seemed

you

special
bonds of large
a

cities and states that have

the

by

have

for

money

purpose); buy some

people?
All this
"impossible!'
It seemed: equally' "im¬
possible" in 1948 that Germany
within a decade could regain
her.,
prewar economic power; arid in
1957
that
DeGaulle could lead '
would

some,

bonds

a

ready

national market

(in case you need
money you can sell easily); buy
Some, other
bonds (for a higher
yield) of sound, smaller, commu¬
nities; and don't place too much

in 1929.

emphasis.!,

ratings,

on

there

are

France toward economic recovery.

good bonds: that are not even
Such ideas as these
Only if the American people are rated.
are
too blind to see'the dangers: of. proper and they have to be
slowly
creeping inflation, or too defeatist drilled into customers. Reasons
.

to- take
will

it

the

necessary

must be

measures,

"politically

impos¬
sible" to stop the wage-price spi¬

shopld

ral and to put an end to the waste
in government.
In the words of

is

given why certain bonds
be
boughtand
others

prove

avoided.

Senator Johnson, "We cannot af¬
ford
to
bankrupt the national
conscience

to

the

serve

and

ends ' of

a

He

become associated
H. M. Byllesby and Com¬
pany, Incorporated,. 135 South La
Salle Street, members of the Mid¬
west Stock Exchange. Mr. Wilson,
for

has been

& co.

.

in La

years,.

Bache

&

Co.

.

Salle

*

*

'

/

'

of¬
his

he

some

certain issue

had

received

would

funds

highest

into

that

bonds.
on

and

like

the list.

on

that

suggested
of

*

to

the

he

He

"first
was:

The salesman

he

only

time

then

customer"

told

his 1 funds

buy ten
forty and

that

did

he

so.

should

-.Arthur D. Halpern has become
partner in Kahn & Peck,. 25
Broad
Street, New York
City,

hold

a

would/select another thirty bonds
for him after he had an opportu¬

members of the American S. E.

nity

.

•

s

to

obtain

.

-

.

n

a

the

Butler, Herrick Branch

investment

~

GREENPOINT, N. Y.

—

Butler,

Herrick & Marshall has opened
branch office at

132

Front

salesman

complete

more

.

understanding
1

and

.

f

a

Street

under the management of William
J. Hattrick.




customer
„

There

argue
one

of

the

position.

customer's

To

this

the

agreed.
are

some

who

might

that this salesman violated

of

the

and

—

cardinal

rules

of

think

to

like

customers

different breeds.

many

sell bonds to pinochle

have

t h i

to

k

n

players.

.

a

cus¬

are

of

When you

players you
pinochle

like

in¬

said

force

New

York

licly

offered

shares
of

City,
an

&
on

*

Railroad

Co., Inc., of
June

issue

of

9

pub¬

200,000

(par 25c)

share. This offering has
completed, all of the shares
having been sold.

world,

individual

television

If there is no strike, steelmaking operations will average
63% of capacity in the third quarter and production will be about

million ingot tons. Fourth quarter operations should average
75%, with output of 28 million tons.
v—
'
A two week strike means a loss of 4 million ingot tons; a

23

.

are

stations

running

now

million; a six week strike, 10.3, million; and
an eight week
strike, 14.3 million.
*
' '. •
;
If a shutdown costs the industry more than 10 million tons
(or lasts longer than six weeks), steelmakers won't be able to
make up the lost tonnage by the end of the year. An eight week
strike will cut the year's output from 115 million ingot tons to
110 million.
Even if steelmakers boost September operations to
85% of capacity (the best possible in the first month after a strike)
and run at 95% instead of 75 in the fourth quarter, they will still
lose 5 million tons.
.

ducer

recently
field

ehtered

and

in

is

the

the pro¬

the
award - winning
film
magazine
"The
Screen News Digest" being seen
by millions of school children in
of

monthly

the U. S. A.

bution of 52 half hour Abbott and
Costello comedy

films, now show¬
ing in major U. S. cities from New
York to Los Angeles.
.

The

proceeds will be utilized
in the development and comple¬
of

various

and professional pessimists underground,
Demand is good; profits are going up; prices appear
Gusses

Gloomy

"Steel." said.

stable; and producers' stocks are mostly falling. Only the threat
of labor trouble in a few weeks mars the best general picture in
over

two years.

substantial

a

period of depression,
price composite on No.

"Steel's"

week.

$35

a gross

ton,

American

up

prices rose
heavy melting

scrap

1

$1.
on 94.7% of Capacity
Steel Institute announced that

Based

Iron

and

the

capacity for the week beginning June 8, equivalent to 2,681,000
tons of ingot and steel castings (based on average weekly pro¬
duction for 1947-49) as compared with an actual rate of *165.2%
of
to

capacity and 2,653,000 tons a week ago.
Actual output for the week beginning June 1, 1959, was equal
93.7% of the utilization of the Jan. 1, 1959 annual capacity of
.

147,633,670 net tons.

cast is 94.7%.

\

,<

\

.

\

\

*Index of
for

production is based

on average

weekly production

1947-1949.

Car Output

73% More Than in 1958 Period

Passenger car output bounced back

this week to

a

rate that

S. auto makers their best second-quarter production
1955, said Ward's Automotive Reports on June 5.
Ward's said 127,738 cars were scheduled to leave the nation's

will give U.

since record year
.

assembly lines in week ended June 6, or 9% more
week's holiday restricted total of 117,372.

than previous
•

♦

k

volume will improve again in week begin¬
ning June 8 as manufacturers build up steam for a June perform¬
ance of
550,000 car completions. This would provide an AprilJune count of over 1,675,000 units, 67.1% higher than correspond¬
ing 1958 (1,003,653) and fourth historically below 1955 (2,128,136),
1953 (1,735,877) and 1950 (1,758,838).
Through week ended June 6, an estimated 2,853,710 new cars
have been turned out in 1959, 73% more than were built, through
the same date in 1958 (1,978,606).
Ward's reported six-day car-making at American Motors m
Kenosha, Wis., Pontiac in Pontiac, Mich.,, Lincoln-Thunderbird
in Wixom, Mich., and Ford Division in Chicago, Dallas and Kansas
Ward's predicted

,

Sterling has world-wide distri¬

tion

,!

The robust health of the nonferrous metals market has driven

*107.6%.

Britain networks.

Sterling

of

steelmakers operated their furnaces at 94%
capacity, down 0.5 point, and turned out 2,661,000 ingot tons.
week,

in

Canada, Great Britain, Australia,
Belgium, Italy, Sweden, Denmark,
Luxembourg, Switzerland, Japan
and Hong Kong. Sterling also pro¬
duces programs for showing over
major U. S., Canadian and Great

educational

.

four week strike, 7.4

the

new

expansion of sales
corporate purposes.

films, for
general

and

Upon completion of sale of this
issue there will be

200,000 class A
shares
outstanding
and
250,000
class B shares outstanding.

1

City.
Down all of the week

ended June 6 was Chevrolet's Los An¬

geles factory, while four-day programs were in
Buick-Oldsmoblle-Pontiac plants, Mercury's Los
Studebaker
and

in

South

Bend

and

Dodge Main,

effect at two

Angeles unit,
Chrysler, DeSoto

Imperial in Detroit.
Ward's

•

-

because they

spot

moving equipment, and farm
implements will fall short. Other users, especially the small com¬
panies, are short on hot rolled, cold rolled, and gavanized sheets.
If there is a long strike, the few mills that will continue to
operate, warehouses, and foreign steel suppliers will have a heyday.

the U.S.A. Programs produced by

Sterling

tight

the

tele¬

throughout
already sold

having
559

the

a

378

The company produces and dis¬
to

in

be

Builders of machinery, earth

Last

:

Structural fabricators didn't increase their inventories

started late.
much.

will

Estimated percentage for this week's fore¬
'
"
.*
t
A month ago the operating rate (based on 1947-41* weekly
production) was *163.8 and production 2,631,000- tons. A year
ago the actual weekly production was placed at 1,728,000 tons, or

'

film

(•

operating rate of the steel companies will average * 166.9%. of steel

per

•

:

Y

'

•>-

carbuilders

Steel Output

been

vision' stations

will be in trouble, because
shortages will
"

centers.

The

of class A stock

tributes

-

After eight weeks,

have upped their inventories
By June 30, they will have
about 21 million tons in stock—9 million more than they had
last September (when liquidation ended) but 4 million less than
they had on the eve of the 1956 strike.
*
The big users, including the automotive industry, are well
fixed as far as stocks go.
Major appliance manufacturers have
also been hedging against a strike for months* Other buyers who
are well prepared are the canmakers, oil producers, and service

Sterling Television Co., Inc. at

$1

'

consumers

many

out of balance.

Since the first of the year, users
from 13 million to 19.5 million, tons.

Sterling Television Go.
Holman

'

weeks,

are

shutdowns.

mass

After

Shares All Sold

Shortage Should Strike Occur

Steelworkers

June 8.

on

After six

stands at

A.

than had been expected, but

strike on July 1, few users will
month, "Steel," the weekly metalworking magazine,

a

their stocks

last

R.

more

United

be hurt for

,

put

particular

the bonds instead of

the

I Kahn & Peck Partner

a

that provided a yield that was the

KneeJand

"\v

:

recom¬

bond.
It happened to be a high
yielding, .• medium
grade,
nonmarketable, local, but small issue

formerly

and

invest in

he

thought

Street,

was

to

that

these

tomer

have

of

following his

are

noticed

list

has

many

.

with

buyers

prospect who said he had about

$40,000

'

CHICAGO, III.—Francis S. Wil¬

who

his

regular clients and prospects and
he received a telephone call from

H. M. Byllesby and Co.

Jr.,

they

bond

Recently he mailed a few
fering circulars to some of

'

son,
With

neophyte

of

*•

Francis S. Wilson With
(Special to Thk Financial Chronicle)

confidence

mendations.

political bookkeeping."

bj

the

of

group

You

Gradually this salesman

gaining

If the

He is wise

under¬

are

little

a

No Immediate Steel

of his connection with other

cause

has been:-their

that

million tons a month.
it also is more
than 1.5 million tons less than steel shipments.
Shipments for
May, when the official figures are announced, are expected to
about equal April's all-time high of 8.6 million tons, June ship¬
ments are expected to drop to about 8.1 million tons.
The inventory buildup will be about 1 million- tons less than
expected for the first half. Instead of a 9-million-ton accumula¬
tion, it will probably be a little less than 8 million tons. The
July 1 level will be slightly under 20 million tons.

another

color). Here we have a
first time, unschooled, bond buyer,

is said to be running at about 7

use

This is

ijn* building the soundest and most
have been; profitable -clientele of
individual Yof thinking I believe is rapidly
kept in a fool's paradise, known as;
investors will tell you that they passing from the investment scene.
"creeping'* inflation, while the na7 not
only had to be good analysts (I am not talking about orders
tidn's economic strength deteri¬
of securities, but also good judges placed for execution in a stock
orated. Shortly before his death ay
of people. Some of the best trad¬
trading account, that's a horse of
the

4

page

SalesmanThe State oi Trade and Industry

Securities

'

whole !

a

serious

a

Democracy Cure Its

*

/ Are
and:

labor

people

will

from

said

truck

output

scheduled at its highest level

for the week under review was
of the year—27,705 units, 1% over

Continued

on

page

36

-

i

o

FtMticidl Chronicle

CofflmeTCtoX wid

The

£6

and

Boston

and

:3:

35

Continued from page

and

moderately in Los Angeles,

slipped

Buffalo."

"7 77

77 ' *77.

'77

-.

St, Louis,_

WertheimUnderwrites

:r

^

Spiegel's Offering

Wholesale Food Price Index Lowest
i.

v-rv>7 Since November 1956

To Stockholders

'*

units for

\

1959. with

banner year is

a

ning 71% ahead of

corresponding 1958 (392,822).

electric energy distributed by the electric

light

Institute.

;77 ;V; i-7-rf

_

'

•

,

,

fcwh., above that of the previous week and
€00,000 kwh. or 14.5% above that of the

million

showed a gain of 1,342,comparable 1958 week.

est

ebove'the corresponding

week in 1957.

;

..

with 276.49
a

-

week

same

new

in

For

the year-to-date, shipments of reporting identical mills
2.5% above production; new orders were 4.5% above pro¬

production of reporting mills was 15.7%; above; shipments were
6.5% above; and new orders were 10.8% above.

the

highest

level

casualties remained below the 325 occurring last
Some 13% more concerns failed, however, than in the
similar week of prewar 1939 when the toll was 279.
r
of

$5,000

«

with

even

the

were

more

number of this size in

ieiling businesses had liabilities in
27.

1958.

$100,000

against

as

wholesalers

and

construction

.

.

Geographically, the week-to-week rise prevailed, in

.

States,

declines, reported 61 casualties

>

one

against
68-a week earlier-. Most areas had fewer concerns
failing than in
Ibecorresponding week of 1958; only three regions-the New
England, East North Central, and Mountain States
suffered

the

similar 1958 period. 7
total

The

as

Saturday for the Memo¬

June 3

was

1

.

.

dollar volume
to 5%

estimates collected by

!

... '77.
"7 7 V
of retail trade in the week ended
higher than a year ago, according to spot
■

Dun & Bradstreet,

Inc. Regional estimates

varied from, the comparable 1958 levels by the

—

heavier tolls than last year.

,

ages:

77

2%, business failures totaled 1,292 in April,

an

'

hlgh.but 11% below last year. Their liabilities, bol52, incrS??e among casualties in excess of $100,000,
to

w

«dlmbed

up

$71.9 million; This volume

was

not

as

-

large, however,

nnni]vr5'^e?pite a.slight rise, remained

•0W--52

per

®ccuti\

10,000 listed enterprises.
Down for the sixth conthe similar period of the previous year it
compared with 60 per 10,000 a year ago.
Retail
^

service

businesses suffered most of the

March and April,

•Hghesfc-in
-

and

two

over

years,

®eayilej>I m six months.
dipped the lowest

increase

The apparel store toll surged the
while restaurant mortality was the

in

1958, with

marked drop

a

in the

machinery industry.
Fewer

1958

were

manufacturing,

last

month-to-month

year

in

South Central States.

dip, occurred
.

Spear, Leeds Branch
POINT

J.—

N.

PLEASANT,

Spear, - Leeds & Kellogg have
opened a branch office at 611
Arnold Avenue under the man¬

agement of William R. Wesson; •

Joins First Columbus
.

"

,

(Special to The Financial Chronicle)

'*'

*

'

COLUMBUS, Ohio — William
E. Deegan is now affiliated with
First Columbus Corporation, 42
East Gay Street.

He was formerly

^7

with The Ohio Company.

Two With Midland Inv.

trends

year-ago levels

in

the

moved

up,

Pennsylvania.

Tolls

Department store sales on
increased

a

country-wide basis

except the Mountain

offsetting downturns in New Jersey and
dropped noticeably in Detroit, Baltimore,

\

5%

above the like period

Parcel Delivery Service strike.

J

—

Robert W.

Wagner and William E. Wear are
now associated with Midland In¬

.

as

taken from

In the preceding
week, for May 23, an increase of 9% was recorded. For the four
weeks ended May 30, a gain of 9% was registered.
According to the Federal Reserve System department store
sales in New York City for the week ended May 30 showed a 5%
increase from that of the like period last year. In the preceding
week, May 23, a 10% increase was reported but for May 9,
May 2 and April 25 no reports were available due to the United

mixed, with
But, all regions rewere

The least change from April 1958, a 3%
Middle Atlantic States where New York




May 30 Week

COLUMBUS, Ohio

Sales Up 5%

the Federal Reserve Board's Index for the week ended May 30,

Atlantic States. The latter's total climbed to a new
postwar high, whereas failures fell sharply in all East and West

casualties

net

$39,112^213:. and

*

7

promotions prompted an upsurge in

Nationwide Department Store
For

food, leather, and. '
appliance retailing, ih

five regions down from March and four
up.

^Provement from
the South

-

noted in

in furniture and
building and subcontracting.

Geographically,

and

safes- of

(Special to The Financial Chronicle)

than

all types of
Among individual industries and trades,

considerable declines from

|*eneral

sales

materials.
succumbed

concerns

operation except service.
«eel

and

ended

-

Increases in men's lightweight suits were more

buying of air conditioners and fans from the prior week and
moderate gains over last year prevailed. While interest in refrig¬
erators rose appreciably, volume in other appliances remained
close to a year ago. Increased buying of metal tables and chairs
and case goods helped over-all furniture volume remain well over
last year. Although retailers reported increases in draperies, sales
of linens and floor coverings remained close to a year ago. Fur¬
ther gains occurred in garden implements, hardware, and building

In contrast, manufacturing casualties

far

so

weather

months

three

profit of $1,888,221* c o-m pared
net sales of $25*173,053 and
net profit of $173,112 in the' like
period of 1958. ; : •. /
7
Upon completion of the- current
: financing;.:; outstanding
capitali¬
zation of the company will con¬
sist of $50,009,000 of 5V2r% prom¬
issory notes, due July 1, 1879;
$15,417,500 - of • 5% subordinated
debentures due. June 1, 1984; 76,940. shares ; of; cumulative : pre¬
ferred stock, and 1,858,104 shares
of common stock... / j;
7. : '
r;.' ; V
'»
...
-

the

Previous year, it

-

between

and suits.

Hot

relatively 7

month from

e

coats

the

March 31, 1959, the company and
its subsidiaries had. consolidated

significant than in furnishings, except for sharp rises in purchases
of straw hats.
Apparel retailers reported marked year-to-year
increases in children's Summer clothing again this week.
-

when the postwar record of $83.9 million

was^eacImd^10US

Moun¬

+5; West South Central;
—1 to -j-3; West North
Central —2 to +2; South Atlantic —4 to 0.
Noticeable j'ear-to-year gains occurred in sales of women's
Summer sportswear, beachwear, and dresses offsetting declines in

tain +3 to +7; East South Central +1 to
0 to +4; New England and Pacific Coast

Slight Rise in April Business Failures
Edging

following percent¬

Middle Atlantic and East North Central -f-4 to

by

units this year.

new

For

net

advanced from

cars

merchandise

with

Scattered reports indicate that sales of new passenger
the prior week and remained sharply over,

equipment.

7
7

25

comparable

holiday, consumer buying was up moderately from both
the prior week and a year ago. Hot weather in many areas stimu-,
la ted sales of Summer: apparel, outdoor furniture, and cooling

six of the

of

principally on a monthly
payment plan basis. Merchandise
is sold through general catalogs of
from 500 to 600 pages published
twice yearly. At Dec. 31, 1958 the
company
operated -165- catalog
order offices, catalog order desks
and telephone shopping facilities.
The company plans to expand its
catalog order offices and antici¬
pates opening an additional 20 to
mail,

2 came to

Moderately Over Year Ago ;

sale

the

in

.

Retail Sales Up

'

Spiegel, Inc., with its executive
offices in Chicago, 111., is engaged

during the week and finished unchanged

rial Day

•dne major regions. The toll in the Middle
Atlantic States turned
to 105 from 87, while East North Central failures
jumped to 65
•rom 43 and New England to 23 from 9. The
Pacific
©f the three regions with

range

Although most stores were closed on

con¬

levels, but other industry and trade
groups, had lower mortality than a year ago.
r

narrow

.

-

~

ing failures dowu to 53 from 55, and commercial service to 24
27.
Casualties among
tractors exceeded their 1958

receivable.

of the week,

ago.

Casualties climbed to 162 from 132, wholesale to 37 from
21, and
construction to 38 from 29. Contrasting dips brought manufactur¬
fc'om

the company's

week earlier.

The exnort total for- the season through June
about 2,371,000 bales, compared with 4,829,000 in the
period last year..

preceding week.
77-7;'-;
;
■
;
7:7;,.,
Trade and construction tolls increased during the week. Retail

;

a

and will be
principally to finance
increasing accounts

available

prior period. Expqrts of United States Cotton for the
week | ended last Tuesday were estimated at 39,000 bales, the
lowest for any week since early March. This compared with 53,000bales a week earlier and 100,000 in the comparable period a year

the

in

proceeds from the financ¬

funds of the company

the

from

Twenty-five of the

of

excess

within
-

plus accrued interest, A ,sink¬

ing will be added to the general

hog prices, lard prices dipped appreciably during the week.
Cotton prices on the New York Cotton Exchange moved

involved in 272 of the
weeks casualties, as compared with 232 in the
previous week and
283 a year ago. An increase lifted small
failures, those with liabilities under $5,000, to 42 from 32 last week and brought them
or

ranging from- 105%. to

prices

ing fund designed to retire, prior
to maturity, not less than 70%- of
the issuer commences on June 1,
1970.
"7.v;.7 77'

prices on steers and purchases were down somewhat. Wholesalers
reported a slight decline in lamb prices as transactions lagged
and offerings were down noticeably.
Following the decline in

in

weeks,

Liabilities

at
par

prices finished at prior week levels. The buying of cocoa moved
up appreciably, and prices were slightly higher.
While hog receipts in Chicago were steady this week, prices
fell moderately as trading slackened. There was a slight dip in

year.

per

redeemed at the company's option

prices were

somewhat and

up

Although coffee trading slackened at the end

Reported

to

moved

purchases this week and prices remained close to a

Commercial and industrial failures climbed to 314 in the week
ended June 4 from 264 in the preceding week, reported Dun &

increase

share. The debentures are
non-callable prior to June 1, 1961,
After June 1, 1961 they may be

steady. Exports negotiations were pending with Ceylon, Indo¬
nesia, France, and Argentina. Expecting supplies to expand and
prices to dip, somewhat, buyers of sugar moderately reduced their

Compared with the previous week ended May 23, production
©f reporting mills were 0.5% above; shipments were 2.8% below.
For the latest week, as against the corresponding week in 1958,

this

rice

stock of the company at

common

$46

Net

in

"7~7 7% 7n-7'77

The debentures will be conver¬
tible, prior to June 1, 1969, into

;■

.

.

Transactions

Despite

of the debentures.

sluggish.

duction.'

Bradstreet, Inc.

chasing the unsubscribed portion

■

sluggish, prices rose somewhat
supplies in some markets were light. Soybean prices weakened
despite strength in the oil market ancl a rise in export buying.
Purchases of flour were slow as buyers were hoping for lower
prices when harvesting got; well underway. Flour prices were
unchanged from the prior week. Except for a sizable offering sub¬
mitted to Ceylon on the weekend, export activity in flour was

equivalent to 22 days' production at the current rate, and
gross stocks were equivalent to 42 days' production.

eight

The* Daily
by Dun & Brad-

lard and rye.

as

were

Rise in Business Failures

pal amount vof debentures. The
subscription offer will expire at
3:30 p.m., Eastern Daylight Time,
on June 22, 1959. Wertheim & Co.
is manager of a group that will
underwrite the offering by;pur-

Although trading in oats was

orders of these mills were

purchase of each $100 princi¬

the

(1930-32=100) on June 8, compared
the corresponding date
•

right is issued for each

ing and 12 rights are required for

prices as domestic volume expanded and exports re¬
a high level.
Corn stocks were slightly below a week

com

earlier.

6.6-% below production. Unfilled orders of reporting mills amounted
to .47 %•' of stocks. For reporting softwood mills, unfilled orders

were

livestock,

%

debentures
of * common
on June 5,

-

of record

share of common stock outstand¬

Price Index, compiled

.7

shares

12

held

1959. One

*

mained at

;Lumber shipments of 462 mills reported to the National Lum¬
were 1.1%
above production for the week

In the

stock

week earlier and 279.76 on

year ago.

each

for
f

show the general trend of.

remained close to the prior week, but offerings
in most markets were light. Both domestic and export buying of
wheat moved up appreciably during the week. Moderate declines
in rye prices reflected lower volume. There was a moderate rise

ber Trade Barometer
ended May 30.

a

of

amount

of

amount

principal

sum

Wheat prices

-

Lumber Shipments 5.6% Above Production
For May 30 Week

J

most

Commodity

street, Inc., stood at 276.92

1,981 cars, or three-

Loadings in the. week of May 30, were
tenths .of 1% above the preceding week.
•'.r

in

declines

Wholesale

taled

principal

subordinated. debentures due
1, 1984, at the subscription
price of 100%, on the basis of $100

Index Edges Slightly Higher
The general commodity level edged slightly higher in the lat¬
week, with gains in steel scrap, silver, tin, and hides offsetting r

moderate

May 30, to¬
687,726 cars, the Association' of American Railroads an¬
nounced. This was an increase of 157,947 cars or 29.8% above the
corresponding week in 1958, and an increase of 16,681 cars or 2.5%
Loadings of revenue freight for the week ended

common

subscribe for

to

5%

Wholesale Commodity Price

Loading 29.8% Above Corresponding 1958 Week

Car

.

raw

right

$15,417,500

living / indexi Its chief function is to
food prices at the wholesale level.

■

ended June 6, output increased by 245

For the week

31

the

June

^

the

outstanding

its

of

stock

total of the price per pound of
foodstuffs and meats in general use. It is not a cost-of-

The index represents

and power industry for the week ended Saturday, June 6, was
estimated at 13,023,000,000 kwh., according to the Edison Electric

Spiegel, Inc. is offering to hold¬

ers

Higher in price this week were rye and hams. Commodities
quoted lower were flour, wheat, corn, barley, lard, coffee, cot¬
tonseed oil, cocoa, eggs, steers, and hogs.
.;..7'

14.5% Above 1958 Week

Electric Output
The amount of

'■

below the year ago $6.60.

and 8.0%

• >

price index, complied by

wholesale food

The

shaping up for truck makers in
production through week ended June 6 (564,147) run¬

Ward's saicl

,

Dun & Bradstreet, Inc., dipped this week to $6.07, the lowest level since the
week of Nov. 13, 1956 when it stood at $6.01. The current index
for June 2 was $6.07, down 0.5% from the $6.10 of the prior week,

and 9% above the 25,419

high of 27,480 set May 4-9
week ended May 30. ;

the previous

'

Thursday, June 11, 1959

...

(2656)

last year.

"

%'■

vestors
Road.
with

Company, 1566 Waltham
Wagner was formerly

Mr.

Livingston,^Williams & Co.,

Inc., of Cleveland.

Walston Co. Adds

i

,

(Special to The Financial Chronicle)

MEDFORD, Oreg.

—

Richard R.

Kyle is now with Walston & Co.,
Inc., 127 East Sixth Street;,
,

Volume 189

Number 5854

The Commercial and Financial Chronicle

....

(2657)

Hic lollowing statistic*! tabulation*
i*» »? «..S

"A-

j.'.

■

' !<■-

-

\'\S*

or
/

f;

week
Latest

AMERICAN

IRON

Indicated Steel

AND

STEEL

INSTITUTE:

Previous

Week

operations (per cent capacity)

June 14

Month

Steel

ingots and castings

AMERICAN

I»ETKOLEUM

Crude oil and
42 gallons

Crude

(net tons)

§2,G81,000

*2,653,000

output—daily average

each)

(bbls.

output

(bbls.)—.

Kerosene

output

of

'

\

May 2.9

2,631,000

.

i

.

:

7,202,025
117,888,000

7,215,975

7,112,625
7,702,000

7,487,000

27,141,000

26,438,000

1,700,000

1,743,000

1,569,000

12,372,000

12,114,000

12,375,000

11,964,000

6,603,000

6,614,000

6,552,000

6,857,000

6,241,635

Stocks -at

'

refineries, bulk terminals, in transit, in pipe line
unfinished gasoline (bbls.) at
May 29
Kerosene (bbls.) at
May 29
Distillate fuel oil (bbls.) at
;
May 29
Residual fuel oil (bbls.) at
May 29
Finished and

;

-

203,140,000
24,030.00

97,544,000

.

54,069,000

-

203,610,000
23,212,000
*94,088,000
54,484,000

;l ASSOCIATION OF AMERICAN RAILROADS:
■y,Revenue freight loaded (number of cars)—i—i-—

087,726

579,559

209,593,000

193,355,000

21,076,000

21,469,000

85,584,000

87,858,000

54,500,000

61,383,000

685,745

',7'i

583,962

-May 30
Revenue freight received from connections (no. of cars)-r-May 30

CIVIL

CONSTRUCTION

ENGINEERING

.674,123

529,779

588,544

^

480,849.

,

ENGINEERING

—

COAL OUTPUT

S. BUREAU

(U.

Bituminous coal

and lignite

Electric output

s=

(per

300,000

320,000

330,000

May 30

—-June
INDUSTRIAL)

AND

J.

PRICES

4

at

12,659,000

314

0.196c

_

264

265

325

6.196c

6.196c

5.967c

$66.41

$63.41

$66.41

$66.49

$37.17

$35.83

$33.83

$36.00

Service

COTTON

J

INDEX

10.800c

STORE

11.300c

11.500c

11.500c

10.500c

Adjusted

for

11.000c

11.000c

10.000c

Without

seasonal

24.700c

24.700c

24.700c

24.000c

104.625c

103.500c

102.625c

94.500c

Kilowatt-hour

95.91

Revenue from

83.56

83.52

84.04

80.38

87.99

-89.64

>>

96.38

90.77

103.30

-38.27

89.92

99.52

86.24

86.11

88.27

95.77

82.03

82.03

r

,

93.28

87.86

*85.33

85.46

87.05

91.77

85.33

85.33

■87.18

97.94

88.-40 "

88.40

89.92

OIL, PAINT AND DRUG REPORTER

*

4.12

9
9

4.11

4.06:

4.68

4.68

ACCOUNT

FOR

Transactions of specialists in stocks
Short -sales

>

of

Number

Total sales

I.

4.56

2.85

sales

Month

4.54

4.92

4.57

4.76

>:

5.02

.

„

4.75

4.63

4.29

4.76

4.76

4.62

4.53

4.42

3.77

390.5

400.7

390.1

389.2"

.

Other

on

Short

"

Total

v

Total

—

Number

■»
.

IN

Dollar

value

FACTURERS'

number

MANU¬

ASSN.—Month of May:

424,273
349,802

115,208

74,236

94

83

Number

of

motor

375

265

235

507,369

348,G0C

$3,565,000
166,000

$3,458,000

$2,869,255
134,440

359,000

379,000

322,244

1,205,000

1,258,000
283,201,861

214,039,579

106,638,269

115,750,571

95

468,80G

110.29

110.30

110.64

109.82

NEW

of

of

2,864,820

3,031,490

2,568,930

Customers' other sales-

17,300

67,800

429,720

434,080

503,300-

568,083

370,890

•;

147,020

491,120

501,880

835,594

770,373

556,505

108,110

130,590

105,750

162,030

877,390

863,625

935,708

659,370

985,500

994,215

1,041,458

821,400

3,710,193'

2,655,755

503,940

562,720

—May 16
May 16

3,731,100

3,889,849

3,567,828

2,396,880

4,353,620

4.532,529

4,071,768

2,959,600

—

—

Dollar

value

—.———-—————

m——

Round-lot sales by dealers—
Number

sales

—

Round-lot purchases by

dealers— Number of shares

debit

balances

;

customers

free credit balances

2.084,417

1,206,601

$105,944,393

$125,781,158

$123,185,441

$51,128,097

1,846,943 1

1,933,379

1,851,193

1,090,383

7,176

14,167

44,413

27,661

1,839,767

1,919,212

1,846,780

1,062,722
$44,958,526

$94,690,387

$104,855,472

$104,514,177

May 16
May 16
Ma$' 16

.-.May 16

488,630

485,180

522,970

343,960

488,630

485,180

5221970

3431960

659,290

774,890

•)68,420

439,990

294,255,796

Member borrowings on U. S.

Member borrowings on

Govt,

(DEPARTMENT

OF

556"000

410,000

449,420

2,095,000

1,995,649

STATES

COMMERCE)—Month

of April in billions:
Total

.

1

.

$372.7

personal income

Wage and salary receipts, total-.—

producing

Commodity

252.9

industries-

only
Distributing industries
Manufacturing

102.3

;

FOR ACCOUNT

round-lot

Short

Other

and

Farm

income

Rental

of

—

,

•

Farm

994,170

1,18G,510

18,311,340

17,858,190

13,218,230

May 16

19.128,100

1.9,484.990

18,433,550

14,212,400

:

j.

20.2

for

social

other than farm and foods

119.6

119.1

-91.1

*91.0

91.4

96.2

June

foods

commodities

farm

Crops

S.

DEPT.

=

of Jan

Monthly

1

figure.
1959

as

investment

107.3
101.5

101.9

102.0

115.0

June

127.3

127.8

127.9

125.2

107.6

107.6

113.0

one-half cent

a

^Includes 958,000 barrels of foreign crude runs.
SBased on new annual capacity of 147,633,670 tons
against Jan. 1, 1958 basis of 140,742,570 tons.
tNumber of orders not reported since introduction of

Plan.
pound.

7.9

6.6
331.0

244

244

257

222

239

284

312

April

255

236

15:
;—

fresh

and

161
:

—

Oil-bearing

crops

—

205

225

218

262

225

hay

155

205
210

grains
grains

«

AGRICUL¬

of

—

vegetables,

7.8

*352.1

INDEX

Cotton

Meat

223

135

159

234

i
1

117
505

261

animals

i

256
y

474
239

327

339

135

153

171

220

EARNINGS

197

212

$856,354,707
652,676,733

CLASS

I

ROADS

$857,914,994

$743,735,819

655,547,301

609,877,185

(AS¬

RRs.)—Month

April:

Total

<

272

249

336

Wool

Total

263

239

——

Poultry and eggs

-•»

operating
operating

revenues
expenses-.

Taxes

.

»•«

vjm

>

'

;

j

Net

94,204,791

:

railway operating income before charges
income alter charges (estimated)
STATE8

BUREAU

OF

EXPORTS

AND

CENSUS —Month

95,295,800

71,939,442

82,337,327

79,139,549

37,013,809

62,000,000

58,000,000

17,000,000

$1,456,300

Net

$1,280,200

$1,552,700

1,300,900

1,118,100

1,071,000

IMPORTS
of

Feb.:

(000's omitted):

tPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds




26.1

262

OF

100—As

—

products

Commercial

Fruit

26.1

223

FARMERS

—

Feed,

12.4
19.3

355.2

income

BY

TURE—1910-1914

Food

12.1

12.6

264

RECEIVED

UNITED

*Revised
as

12.5

20.0

'

in¬

———_—

nonagricultural

NUMBER —U.

of

119.5

Juno

Processed

15.0

26.2

SOCIATION OF AMERICAN

,

119.5

June

products

13.5

41.2

"

payments
employees' contribution

RAILROAD

Juno

Meats
All

575,360

U. S. DEPT. OF

Commodity Group—
All commodities-—

30.6

'

1,173,650

May 16

WHOLESALE PRICES, NEW SERIES
LABOR — (1947-49 n= 100):

8.9

*32.8

12.G
_L

Livestock

741,590

May 16
.

33.4

9.5

12.5

persons

interest*-- income—;

Dairy products

Otlier sales

62.4

*44.4

33.0

professional

65.8

34.9

44.5

505

sales—

Total sales

74.3

9.6

income

.

95.0

*83.4

66.0

-

labor

Business

All

232.Q

i.

*105.1

35.1

industries

Government

PRICES

$349.7

.*250.2
•

•

84.9

-

Potatoes

TRANSACTIONS
OF MEMBERS (SHARES):

sales

*$369.5

;/.

13.5

Service

Total

984,558

2,332,000

issues

other collateral

PERSONAL INCOME IN TIIE UNITED

-EXCHANGE AND ROUND-LOT STOCK
Total

153,000

Market value of listed bonds.

surance

2,278,440

STOCK SALES ON THE N. Y. STOCK

TOTAL ROUND-LOT

net

hand and in banks in U. S

on

Market value of listed shares

Less

2,018,010

'

sales

Other

/

Transfer

May 16
May 16
May 16
— May 16

shares—Total sales

of

.Short

—

April 30 (000's Emitted):
Member
firms
carrying margin accounts—r

Personal

.

May 16
—May 16

"

-

87,900
480,183

692,680

Customers' short sales—

.

468,400

446,100
>

4,335,484

Number of

-

558,870
57,200
,

.*

of

Total of customers'

4,317,800
622,520

purchases by dealers (customers' sales)—
orders—Customers' total sales

"Odd-lot

coaches

STOCK EXCHANGE—

YORK

Cash

<•
May 16
——-May 16

—

24,931

..

FROM!

S.—AUTOMOBILE

U.

SALES

694,789

May 16
May 16

shares

of

$52,009

*28,481

23,074
FACTORY

VEHICLE

579,316

930,640

ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y.
STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION
Odd-lot sales by dealers (customers' purchases)—t

*$49,861

$50,291

——

Sales
MOTOR

660,361

the Uoor-

sales

$29,864
22,145

112,660

497,831

•

STOCK TRANSACTIONS I- OU ODD-LOT

*21,488

547,326

1,636,320

——

..*$28,373

vehicles

2,583,290

—

$28,795

-

of

97

May 16

—

323,574

SERIES—

(millions of dollars):

Credit extended to

May 16
May 16
—--——--—.May 16

NEW

Number

1,303,430

———■—

208,161.

200;490

247,209

.May 16

—

Other sales

-

,*<

sales

254,773

SALES

320,662

round-lot transactions for account of members—

Short

55,288,379

290,623

31

(AMERI¬

317,983

380,890

Total purchases,

...

56,367,429

294,80G

March

CONSTRUC¬

passenger
cars
motor trucks

2,202,400

sales

46,702,573

$797,337,000

Number

474,190

Other sales

Total
Total

51,247,075

$872,315,000

264,648

2,546,041
3,020,231

—

51,373,943

$859,070,000
56,425,214

of

374,448

May 16

sales

130

297,960

457,210

Total purchases.

134

——

Non durables

PLANTS

2,407,610

——

140
'130

32G.4G7

May 16

!
transactions initiated

145

—

350,614

5

—

J

sales

Total

378.0

KM)—-

3.88

4.53

—~;——•—-May 16
——;
May 16

—

429.7

4.02

1,608,130
332,890

Other sales

9,451,000

438.8

21,496

at

STEEL

STEEL

COMMERCE)

of March

4.70

2,828.290

Total purchases
Short sales —!

17,602,000

10,743,000

customers—

customers

OF

Durables

SPECIALISTS

—

20,942,000

17,637,000

Inventories—■

in which registered-

——

20,409,000

8,776,000

142

—:

(000's omitted)
ultimate customers—month

OF

3.55

As

:—

20,402,000
17,945,000

of April:
(tonnage)—estimated(tonnage)—estimated

3.98

5.02

Jun0

.

942,509

17,602,000

TION)—Month
Contracts closed

Shipments

3.78

MEM¬

OF

846,314

17,637,000

—

ultimate

STRUCTURAL

4.36

9

9

729,958
1,723,210

RE¬

variation——

to

INSTITUTE

4.42

'

•

bther transactions initiated off the floor—

■'»

9,342,533
74,936

COMMERCE):

adjustment

ultimate

of

CAN

4.54

■

4.69

—-—

———

862,582
1,630,798
10,375,161
120,909

17,945,000

May 2

OF

March

FABRICATED

(DEPT.
-

.May 16

—,
——

Other sales

716,820
1,587,497
9,541,298
102,796

January

:■ 4.44

9

PRICE INDEX—
—

purchases—

2,605

OF

SALES—FEDERAL

seasonal

Total customers'

Total

2,759

9,729

797,245
of

as

MANUFACTURERS' INVENTORIES AND

.May...O

BERS, EXCEPT ODD-LOT DEALERS AND
*

3,352
3,772

..

EDISON ELECTRIC INSTITUTE—

Total

100

—

3.883

99.68

^
^
^Iay
Hay 'i2

—

—

TRANSACTIONS

3,618

2,792

DEPARTMENT

SYSTEM—1947-49 Average
Month of May:

11.800c

86.38

June

—

(tons)

AVERAGE

8,056

10,260

3,674

Spinning spindles in place on May 2_.
Spinning spindles active on May 2
Active spindle hours (000's omitted) May 2
Active spindle hours l'or spindles in place Apr.

11.800c

June 9
J°ne •'
—June j

Percentage of activity
—
Unfilled orders (tons) at end of period

19-49

—

SPINNING (DEPT.

11.000c

NATIONAL PAPF.RBOARD ASSOCIATION:

ROUND-LOT

2,017

3,997

SERVE

June

Industrials Group

Production

2,127
3,720 r

10,463

!
—

May 2
spindles active

Cotton
COTTON

11.000c

June

.

(tons)

8,124

2,149

month of April
consuming establishments as of May 2
public storage as of May 2_.
Linters—Consumed month of April

11.500c

>

Group

Orders- received

$42,617
32,888
14,691

credit

11.500c

3
3

June
June

—

—

COMMODITY

14,375
8,721

8,777

In

12.000c

June

„

.

—

"~ZZZZZZZZZZ~ZZZZZZZZZZZZ~Z
Baa "HillII-——
I
I

MOODY'S

33,943

8,841

LINTERS

AND

12.000c

3
3
3
3

June

Group

$44,203

34,453

—

credit

DEPART3IENT

— -

Public -Utilities

$44,916

•

payment loans
Charge accounts

4.55

Railroad

3,721,321

—

Single

22.425c.

4.46

*

34,391

*3,586,821

loans

28.575c

June

:—

Group-

U. S. Government Bonds-

-

-

3,802,015

137,298

3,422,876

(net tons)

Other

29.400c

9

MOODY'S BOND YIELD DAILY AVERAGES:

Aa

6,074,002
152,7G5

14,686

credit

Automobile

24.400c

June
Juno

ICII— ~

Average corporate—

3,836,400

OUTSTANDING—BOARD

of April 30;
credit

consumer

Instalment

Month

~

Industrials Group

*6,399,532
*6,262,234

OF GOVERNORS OF THE FEDERAL RE¬
SERVE SYSTEM—REVISED SERIES—Esti¬
short and intermediate term credit

31.200c

88.13

k;

51,519

240,670

mated

29.350c

3
3

June

'

Public "Utilities

CONSUMER CREDIT

31.125c

June .9

:

Railroad Group

"*"

tons)!

(net

31.125c

89.37

Baa,"

11.681,000

AVERAGES:

DAILY

U. 8. Government Bonds-.—.—

r

coke

Stocks

Juno
Juno
June

Average corporate

*

71,018 •
"

203,863

6,226,767

Consumed

*12,778,000

-

at

(primary pig. 99.5%)
Straits Tin (New York) at

A3"

Oven

Beehive coke
(net tons)
Oven coke stock at end of month

339,000

iiwtc-

QUOTATIONS):

Aluminum

BOND

76,393
78,613

'

'

85,348
198,004

(BUREAU OF MINES)—Month of
April:
Production (net tons)

7,189,000

-

—

Louis)

4,902,838

COKE

Personal

116

;

Ago

5,416,274

77,489

"""""

consumer goods—
Repairs and modernization loans

141

Year

(tons of

135,755,000

copper—

Zinc (East St.

Month

—

*139

13.023,000

2
2
2

June

Juno
June
—————— June
—

refinery at——June
,
Export refinery at
".
—
June
Leid'(New York) at-——
!
;
1
June
Lead 4St.. Louis) at
June
% Zinc (delivered) at—
June

MOODY'S

122

of that difeds] •"

Previous

v

In

——

M.

&

6

Domestic

r

:

are as

6,129,146

173,876,000

•

J

,

INSTITUTE, INC.—Month of

output all grades
2,000 pounds)
Shipments (tons of 2,000 pounds)
Stocks at end of period (tons)

309,G31,000

&

V';' '• '

ton)—.

gross

(E:

DUN

—

—

PRICES:

(per. lb.)—

PRICES

Electrolytic

8,235,000

y"; J

COMMERCE—RUNNING BALES:

Pig iron (per gross ton)
Scrap steel

*8,410,000

100

BRADSTKEET, INC

:

8.150,000
*

(in 000 kwh.)

IRON AGE -COMPOSITE

METAL

178,600,000
46,800,000

,

either for th#

Month

tons)-

Noninstalment

——

AVERAGE

(COMMERCIAL

Finished steel

165,500,000

178,600,000

INSTITUTE:

ELECTRIC

FAILURES

344,100,000

104,300,000

INDEX—FEDERAL RESERVE

SALES

SYSTEM—1647-49

.

EDISON

132,800,000

177,900,000
225,400,000

$481,351,000
171,720,000

OF MINES):

(tons)

Pennsylvania anthracite (tons)
DEPARTMENT STORE

335,600.000

May 30

——.—_

.

177,900,000

June

—————_—.—

State and municipal-.

$403,300,000

May 30

Public construction——

$679,700,000

June

,Vr Private construction

T,-(.

$315,700,000

June

construction

S.

(in

May:
■
•
Slab f-inc smelter

Total

June

33,500,000

Total U.

r,'

.. •

are

'

in millions as

NEWS-RECORD:

•X

of quotations,

cases

:

; ..

March:

ol'

carriers

,

7,891,000
"27,569,000
1,488,000

28,501,000

Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)—

>'

Month

AMERICAN ZINC

May 29
May 29
May 29

-

*

»• •..«*,

Intercity general freight transported by 363

1,728,000

'

May 29

(bbls.)-..

(bbls.)

./

in

or,

AMERICAN TRUCKING
ASSOCIATION, INC.—

64.0

May 29

—

.

average

Gasoline

•

that date,

INSTITUTE:

condensate

to stills—daily

runs

-June 14 >

r--*

Latest

Ago

92.9

/

on

i>*-V-

Dates shown in first column

Year

Ago

>•93.7

Equivalent to—

•' i'.1" T'jy*. '•/$
y>»»•'-'

,

month tviSable.

production and other figures for'thi ■>:*:s

cover

'

month ended

Week

"§64.7

-

or

:>

37

Imports

The Commercial and Financial Chronicle

.

.

Thursday, June 11/1959

.

(2658)

38

★ INDICATES

Now in Registration

Securities

/

• Abbott Laboratories
3 filed 500 participations in

;

.

the company s Stock

June

be offered to eligible em¬

Retirement Plan which may

12 months' period following the
registration statement, together with
25,000 shares of common stock which may be purchased
pursuant to said plan.
• Academy Lire Insurance Co.
March 31 filed 310,000 shares of common stock (par 30
cents) to be offered for subscription by common stock¬
holders on the basis of 0.525 shares of additional stock
for each share held of record on or about June 12, 1959
(for a 20-day standby). Price — To be supplied by
amendment. Proceeds—For additional working capital.
Office
405 Exchange National Bank Bldg., Denver,
Colo. Underwriters—Boettcher & Co., Inc., and Bosworth,
Sullivan & Co., Inc., both of Denver, Colo.
ployees during the next
effective date of the

—

Specialties,

Accurate

Inc.

(6/15-19)

May 12 filed 95,000 shares of common stock (par 10
cents). Price—$2.50 per share. Proceeds—For additional

working capital and pay¬
Milton D. Blauner & Co.,

equipment, operating expenses,

Underwriters —
& Co., both of New York.
Advanced Research Associates, Inc.
Dec. 1 filed 400,000 shares of common stock (par five

ment of notes.
Inc.

and Stanley Heller

cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,
and Williams, Widmayer Inc., Washington, D. C.
Stop

proceedings instituted by the SEC.

order
•

(6/26)

Aerojet-General Corp.

May 27 filed 175,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
advances from General Tire & Rubber Co. Office—
6352 North Irwindale Ave., Azusa, Calif. Underwriter—

pay

Kidder, Peabody & Co., New York.
Alsco, Inc. (6/15-19)
May 15 filed $4,000,000 of 5!A% convertible subordinated
debentures due June 1, 1974. Price—100% of principal
amount Proceeds—To reduce short-term bank loans; to
.

will

issue

the

of

balance

the

and

be

offered

•

public and to holders of stock options. Office—134 East
Second Ave., Anchorage, Alaska. Proceeds—To discharge
a bank loan; for drilling and exploration; and for general
corporate purposes. Underwriter — National Securities
Corp., Seattle, Wash. Statement expected to become ef-

.

Underwriter—None.

ISSUE

'z

vV.

t

No public offer¬

;zV'Jv "'/■V'V!

Ballard Aircraft Corp.

.yvZ.;

April 17'filed 300,000 shares .of common stock (par, $1).
Price
$3.25 per share.
Proceeds — To develop and
manufacture aircraft embodying the body lift
principle,
—

the

to

REVISED

z. '/

;

.

Pasadena, rCalif.
ing planned, :' -

Anchorage Gas & Oil Development, Inc.
May 27 filed 450,000 shares of common stock, * part of
which will be offered, at a price of $1.50 per share, to
stockholders of record June 1, 1959, in the ratio of one new share for each three then held.
Unsubscribed stock
•

PREVIOUS

ITEMS

•
•

ADDITIONS

SINCE

'

/

'

Underwriter—Firm originally mentioned has with¬
drawn. V Note—SEC to hold hearing June 18
regarding

etc.

'

>. statements' in
j,
Bankers Preferred Life Insurance

prospectus;/^*..,>/!,.///I

Z;W,

fective around June 20.

Apache Oil Corp.
May 25 filed 350 units of participation in the Apache
Oil Program 1960 and 70,000 rights for the purchase of
common stock (par $1.25).
The offering is being made
only to the stockholders of the company. Each subscrip¬
tion to a unit in Apache Oil Program 1960, will entitle
the subscriber to subscribe also to 200 rights for the

incidental to operation of an insurance com¬
Office—Suite 619,. E. & C. Bldg., Denver, Colo.
Underwriter—Ringsby Underwriters, Inc., Denver 2,

expenses
pany..

'

Colo.

'Z-ZZ;

■;

.

Materials, Inc. >
v:
Z'Z. V
April 9 (letter of notification) 1,200,000 shares of com¬
Basic

mon
stock (par 10 cents). - Price—25 cents per share.
purchase of one share per right of the company's $1.25
Proceeds—For mining expenses. Office—c/o Harold A.
par value common stock. Warrants evidencing the rights :
Roberts, President, Arroyo Hondo, Santa Fe, n. Mex.
will be nontransferable prior to Aug. 16, 1960, and will
Underwriter —Hyder, Rosenthal & Co.,
Albuquerque,
expire at 2:00 p.m., (CST) on Jan. 31, 1962.
Unless/ n. Mex. :
':/.vZC/;r:
Apache Oil Program 1960 commences operations on or Bausch & Lomb Optical Co. •
'
f
"
before June 30, 1960, all unexercised rights will be void
May 8 filed • $8,542,000 of convertible debentures due
as of 2:00 p.m.
(CST) on that date, and their purchase
1979, being offered for subscription by common stock¬
price will be refunded. Price—$12,000 per unit. Pro-;
holders on the basis of $100 principal amount of deben¬
ceeds
For general corporate purposes.
Office — 523
tures for each 10 shares1 held on June 2, 1959; fights
Marquette Avenue, Minneapolis, Minn. Underwriter—
to expire on June 18. Price—100% of principal amount.
APA, Inc., the corporation's subsidiary.
Proceeds—To retire all outstanding bank loans maturing
Dec. 31, 1959, for working capital and other corporate
ic Approved Finance, Inc.
June 3 (letter of notification) 12,000 shares of common
purposes.
Underwriter — Stone & Webster Securities
stock (no par) to be offered to stockholders of record
Corp., New York..
*
'///:'l;,..Z,..-:>„ •/'
.

—

,

.

June

1959, on the basis of one new share for each
'• Benson-Lehner
Corp.
held.
Rights expire July 7, 1959.
Unsub¬
May 4 filed 89,620 shares of common stock, of which
scribed shares will be offered to the public. Price—To
76,620 shares are to be offered for subscription by com¬
stockholders, $20 per share; to public, $21.50 per share. Z' mon stockholders of record June
10, 1959, on the basis
Proceeds—To repay 3V2% series A subordinated deben¬
of three new shares for each 10 shares then held. Rights
tures and for working capital.
Office-—246 N. High St.,
expire June 20. Price—$6.75 per share. The remaining
Columbus, Ohio. Underwriter — For publicly offered
13,000 shares will be sold for account of selling stock¬
shares, Vercoe & Co., Columbus, Ohio.
.
holders at $7 per share. Proceeds—For additional work¬
ing capital and other general corporate purposes-, in¬
Armstrong Uranium Corp.
research
and
development.
Office — 1860
Jan. 16 (letter of notification) 3,000,000 shares of com-Z cluding
Franklin Street, Santa Monica, Calif.
mon stock (par one cent).
Underwriter—
Price — 10 cents per share.
Bear, Stearns & Co., New York. No public offering.
Proceeds—For mining expenses. Office—c/o Hepburn T.
•/
five

16,

shares

.

liquidate the balance of loans from the Estate of Dora
Sugar Weinstock advanced for construction purposes;
to prepay an instalment on funded indebtedness; to re¬
deem all outstanding 1,089 shares of $100 par preferred

subsidiary; for capital expenditures; and for
Office—225 South Forge St., Akron,
Underwriters — Hirsch & Co. and Bache & Co.,

stock of

a

working capital.
Ohio.

both of New

York; and Equitable Securities Corp., Nash¬

ville, Tenn.
•

Alscope Explorations Ltd.
26 filed
1,000,000 shares

March

which 700,000 shares are to be

of capital stock, of
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

Brockton Edison Co. (6/23)
'
May 7 filed $5,000,000 of first mortgage and collateral
trust bonds due April 1, 1989. Proceeds—To prepay its
short-term bank loans, to purchase $2,014,100 of de¬
benture bonds and $1,665,100 of common stock of Montaup Electric iCo./and for construction purposes. Under¬

Armstrong, Round Up Heights, Cheyenne, Wyo. Under¬
writer—Bruno-Lencher, Inc., Pittsburgh, Pa.
•./•>.
•

Arnav Aircraft Associates, Inc.
May 14 (letter of notification) 150,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—To,
repay certain indebtedness, to finance increased inven- '
tories, for working capital, etc. Business—Manufacturers!
of hydraulic fluid line fittings and related products for/
the aircraft and missile industries.

writer— To

Office—32 Industrial'

Ave., Little Ferry, N. J. Underwriter—Hamilton, Waters

corporate

Office

purposes.

303

—

Alexandra

&

Co., Inc., Hempstead, L. I., N. Y.

Bldg., Edmonton, Canada. Underwriter—None in United
States; Forget & Forget in Montreal, Canada. State¬
ment effective June 1.
•

American

Offering expected

Asiatic

filed

Price—One and one-quarter cents per share. Proceeds—
to selling stockholders.
Office — Magsaysay Building,
San Luis, Ermita, Manila, Republic of Philippines.
derwriter—Gaberman
& Hagedorn,
Inc., Manila,

Un¬

Re¬

public of Philippines.
•

American

Bakeries

Co.

(6/16)

May-19 filed 60,000 shares of

common stock
(no par).
supplied by amendment. Proceeds — To
selling stockholders. Office—919 No. Michigan Ave., Chi¬
cago, 111. Underwriter—Merrill Lynch, Pierce, Fenner &
Smith, Inc.

Price—To

be

9

American Commercial Corp. (6/15-22)
May 14 (letter of notification) 250,000 shares of preferred
stock (par 50 cents) and 50,000 shares of Class A com¬
mon

stock

(par 10 cents) to be offered in units of five

shares of preferred stock and

Price—$6

per

unit.

one

Proceeds

purposes. Office—744 Broad

Class A

—

For

common

general

share.

business

St., Newark, N. J. Business

—To finance accounts receivable. Underwriter—Phoenix

Securities, Montclair, N. J.
American Hospital Supply
Corp.
April 20 filed 20,610 shares of common stock (par $2) to
be offered in exchange for common stock
of Massillon
Rubber
common

2020

Co.

for

the

on

one

basis

share

of

of

nine

shares

Massillon

Ridge Avenue, Evanston, 111.

of

common.

Office—

stock

(par

share

Proceeds—To purchase equip¬
ment and supplies and for
working capital and other
corporate purposes. Office—Salt Lake
City, Utah. Un¬
derwriter—Amos Treat &
Co., Inc., New
per

York, has with-

drawn as undGrwritGr. Change in
Name
Formerly
United States Telemail Service, Inc.
Amican Petroleum & Natural
Gas Corp. Ltd.
March 23 filed 745,000 shares of
capital stock (no par),
of which 500,000 shares are to be
sold for the account
——

of

thecompany, and 245,000 shares by the holders there¬

of.

Price—30 cents per share.

Proceeds—For explora¬
development program.
Office — 21 no S^arth
Street, Regina. Saskatchewan. Canada, t Underwriter
Cumberland Securities, Ltd.,
tion

Associated

June

Nov. 24 filed 300,000 shares of 20-cent cumulative

con-

and




of

account

the

company

and

be offered for the account of

a

the

common

shares

will

selling stockholder. Price

—To be

supplied by amendment. Proceeds—To acquire
new bowling centers and increase
working capital (part
to be used in defraying cost of acquisition of stock of
owner of a Brooklyn
(N. Y.) bowling center.
Office—
135 Front St., N. Y.
Underwriter — To be named by
amendment.

Offering:—Exoected in two weeks.

-Ar Astronautics Engineering Corp.
May 28 (letter of notification) 150,000
stock (par five cents). Price—$2 per
For working capital. Office—500 W.
Fla,

Underwriter

N. Y.

.

—

Charles

;;

;

■

Plohn

(7/6)

18th

&

Regina, Canada.

23.>

St., Hialeah,
Co., New York,

'

-

Brookridge Development Corp.
Dec. 19 (letter of notification) $200,000 of 6% 15-year
convertible debentures.
Price—At par ($500 per .unit).
Proceeds—For expansion and working capital
Office—
Seneca

901

Ave.;

Brooklyn

Sano & Co., 15 William

—Temporarily

<

27/ N

SEC.

by

with

of

common

certain

Y ; Underwriter

—

'.

"

'V,

stock

will

be

issued

in

connection

acquisitions

of businesses ,and assets; the
65,000 common shares are reserved for issuance
under Employee Restricted Stock Options. Underwriter
other

—None.

Z

.

Z*

...•

Central American Mineral

,

*

St.; New York, N: Y. "Offering

suspended

Buckeye Corp., New York
April 28 filed 192,039 shares of 5% convertible preferred
stock, series A, (par $10) and 164,299 shares of common
stock (par $1). All of the preferred shares and 99,299
shares

,

shares of common
share. Proceeds—

,

bidders:

Securities

c

(par one cent) and 50,000 out-,
standing shares of common stock (par one cent). The
preferred shares are to be offered for public sale for the

Resources, S. A.

• Azalea Mobile Homes, Inc.
May 21 (letter of notification) 300,000 shares of class A
common stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds—For opening one additional trailer sales lot and

May 27 filed 620,000 shares of common stock, of which
500,000 shares are to be offered for the account of the
company and 120,000 shares for the account of certain
selling stockholders. Price—$1 per share. Proceeds—To

for construction cost of mobile home park. Address—3455

finance

Highway, Norfolk, Va. Underwriter—Palombi Securities
Co., Inc., 60 Sutton Place South, New York, N. Y.
•

Atlantic

Research

Corp.

(6/11)

March 31 filed 110,000 shares of

stock, of which
publicly and 10,000
shares to employees under company's incentive plan.
Price—$15 per share. Proceeds—To reduce short-term
bank loans and to provide equipment for development
and production of propellant rockets.
Office
Alex¬
100,000

shares

are

to

be

andria, Va.
Underwriter
Washington, D. C.
.

common

offered

—

Johnston,

Lemon

&

Co.,

common

...

stock, of which,

the company proposes to issue 126,072 shares to A.M.I.
for the latter's propertv and assets, and the re¬

Co.
June 5 filed 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¬
ditures; for investment in stocks of subsidiaries; and for
other

corporate purposes. Office—144 South4 12th St;,
Lincoln, Neb. Underwriters—Paine, Webber, Jackson &
Curtis, New York; and Loewi & Co., Inc., Milwaukee,
•

Century Brick Corp. of America
April 6 Getter of notification) 150.000 shares of

Inc.

stock.

maining 166.354 shares are to be issued upon the exercise
of stock options. Underwriter—None. Statement effec¬

general

tive March 31.

Automation Instruments, Inc.
April 27 (letter of notification) 4.584 shares of common
stock. Price—$6 per share. Proceeds—To go to Lester,
Rvons

&

Co.

as

securities

obligation of the company.

£n"v

and

finally: naid

as

an

Office—401 E. Green Street,

..

.

Telephone

Wis.

Automatic Canteen Co. of America
March 2 filed 292.426 shares of

acquisitions and to increase working capital.
Office—161 East 42nd St., New York, N. Y. Underwriter
—None.
/
.
★ Central

—

common

Price—$4

American

Underwriter—None.

American Telemail
Service/ Inc.
Feb. 17. 1958. filed 375,000 shares of

$1).

j_
' /
'
Bowling Centers, Inc./

vertible preferred stock

Oil Corp.
100,000,000 shares of capital stock. Sub¬
sequently reduced by amendment to 20,000,000 shares.
Nov. 24

this week.

determined

be

by competitive--bidding.
Halsey, Stuart & Co. Hue.; Stone &
Corp.; Kuhn, Loeb & Co., Salomon
Bros. & Hutzler and Wood Struthers & Co. (jointly);
Kidder, Peabody & Co., White Weld & Co. and Shields
.& Co. (jointly); Eastman Dillon, Union Securities & Co.
Bids—Expected to be received up to 11 a.m. (EDT) on
Probable

Webster

■

general

.

*&•«,*•*
Jan. 30 (letter of notiifcation) 100,000 shares of common
stock (par $1.60). Price—$3 per share.
Proceeds—For *

;•

common

Price—$2 per share.

Proceeds—To be added to
funds of the company
Office—1020 G; Daniel

Baldwin

Building. 1005 State Street. Erie, "Pa. Under¬
writer—Summit Securities. Inc.. New York. N. Y.

Chattanooga
March

25

filed

Industrial

37.500

Development Corp.

shares

of common stock.
Price
Proceeds—For purchase and
development
.

S20 per share

if industrial properties and

—Chattanooga, Tenn.

for working capital.
Underwriter—None.

Office

•

Volume

189

Number 5854

.

.

The Commercial and Financial Chronicle

.

(2659)
• Chemex
Industries, Inc.
.May 26 filed .200,500 shares of common stock, of which
•170,000 shares are to be offered publicly. The .remaining
;30,500 shares are subject to sale understock purchase
options granted to employees. Price—$3 per share. Pro¬
ceeds—For purchase of properties, for construction of
additional warehousing space, and. for working capital.
Office—2822 35th St., Tampa, Fla
^.lJii^ferwriter—Pierce,
:
Garrison, Wulbern,,Jnc.,„ Jacksonville,' Fla.AL, 1 * r

v

<

>
Civic Finance Corp.
eMay 21 (letter of notification) 11,116 shares of common
-stock (par $2) to be offered on a share-for-share baiis
/..to stockholders of|,Milwaukee Loan & Finance Co. Offer

^expires on Aug. 1, A959. Price —r To ; be supplied by
^-amendment. Office—633 N. Water .St.; .Milwaukee, Wis.

UUnderwriter-—None;.."7.
Colonial Energy Shares,

/

Inc., Boston, Mass.

May .5 filed 1,100,000 shares of

»

'/." :;i- V

common

y^White, Weld & Co., New'YorlL
>'rCo., Los Angeles, Calif/-•

%■" Colorado-' Water

Price—

stock.

ijAlt; market. ./Proceeds—For investment.:

Underwriters

-

and Dean Witter &

(par $1) to be offered-in Units ;6f $200 of deben¬
tures and one share of Stock;
Price
$205 her unit.
^Proceeds—For working capital Office—Sliite421, 901
—

^Sherman Street, Denver,Colo."

Underwriter—Associated
^'Securities 412 Main Street/ Cedar Falls,-Iowa/ - :
Commerce Oil Refining Corp.
Oec. 16,19.T7 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968. $20,000.00 of subordinatea debentures due

'•/.

Oct. 1, 1968 and 3.000.000 shares of common stock to b#
in units as follows: $1,000 of bonds and 48 share*

;

Commercial Investors Corp.
Vov. 28 (letter of notification) 900,000
stock.

non

Price—A(L

leeds—For

7 offered

/ of stock and $100 of debentures ""d nine shares of stock
k Price—To be supplied by amen^unent. Proceeds — TV

11

•

Connecticut Water Co.

rate of one new share for each four shares or
fractions
thereof then held; rights to expire on or about June 23.

The

remaining 982 shares are to be offered for subscrip¬
employees.V Price—$16 per share. Proceeds—to
repay in part rthe company's outstanding bank
loans;
tion by
to

finance

for

other

part

one

/

(Milton

■

Blauner

D.

&

Co.,

Inc;)

"'/

(Blunt Ellis

18

(Bids

to

be

«•'

June

■/"■*'

(Shearson,

v>-

12

Ozark

,

Air

11:30

Lines,

(Offering to

J. C.
shares

200.000
.

;

...

...

.

.

and

June 15

Accurate

(Filor,

Specialties,

(Milton D.

*.■

'

and

Co.)'

by

Newhard,
$631,084

Woods)

C<k£
>

on

26

page

40

(Friday)

Aerojet-General Corp.

Common

Peabody

&

175,000

Co.)

shares

General Precision Equipment Corp.

Cook

Preferred

}.

June 29

&

8myth)

143.750

(Monday)

&
,

Superior Window Co

Preferred

(Cruttenden, Podesta & Co.) $500,000

Common

22

Superior Window Co

shares

(Monday)

Class A Common
V

■

Corp.

A.

Co.)

&

Industries,

(Bids

...Common

Business, Inc

(Ira

Haupt & Co.;

Hirsch & Co.

Debentures

Wire

&

Cable

and

(Charles Plohn & Co.

Treat & Co.,

Amos

Corp

$20,000,000

Securities

(Wednesday)
Debens.

(Offering not underwritten) $500,000

Inc.)

Common

Netherlands

and

Co.; Bache & Co. and Equitable Securities Corp J

invited)

be

Investors Funding Corp. of New York

July 3

$1,500 000

r

Jefferson

Debentures
to

July 1

Class A

$750,000

;

,

$450,000

Herold Radio & Electronics Corp.______Debentures

^

........

(Tuesday) '

Montreal Canada

$843,750

Inc

•'

•

June 30

/-Common

Lomasney

Electronic

Funds for

'
&

Continued

to stockholders—underwritten by The First Boston
Corp. and Tucker, Anthony & R. L. Day) 105,927 shares

(Joseph Mandell & Co., Inc. and Robert L. Ferman & Co., Inc.)

M':' Alsco, Inc.
(Hirsch &

Bonds

$5,000,000

EDT)

(L. D. Sherman & Co.)

A"k

Stanley Heller

Underwriter—None.

Crosby-Teletronics Corp. (6/22-26)
May 22 filed 250,000 shares of common stock (par 25
cents). Price—$3.37Yz per share. Proceeds—For general
corporate purposes. Office—54 Kinkel St., Westbury,
L. I., N. Y.
Business—Designing, manufacturing and

-Common

'

Common

Inc.

1958.

&

(Cruttenden, Podesta & Co.) $500,000„

.

$237,500

.

Crescent Petroleum Corp., Tulsa, Okla.
May 26 filed 48,460 shares of 5% convertible pfd. stock
($25 par) and 12,559 shares of common ($1 par), 34,460
shares of the preferred and 9,059 shares of common are
issuable upon the exercise of stock options granted when
the assets of Norbute Corp. were acquired on
Aug. 6,

(Friday)

Heitner &

Bullard

(Myron

Inc

Blauner & Co..

■'*

''

• Crescendo Oil Co., Inc.
(letter of notification) 300,000 shares of common
stock.
Price—At par ($1 per share). Proceeds — For
lease, labor, equipment, etc. Office—309 V/ S. Third St,
Las Vegas, Nev. Underwriter—None.

June 1

(Kidder,

>•

»

Inc

Yates,

June

Fanon

(Monday)

Price—

—

June

Plastic Materials & Polymers, Inc.—

-

&

.

stock.

common

Proceeds—For exploration prograin.
Office—2100 Scarth St., Regina, Saskatchewan; Canada.
Underwriter
Cumberland
Securities
Ltd., also of
Regina.
-

-

Comn^on

Bradford

...

a.m.

,

^'^'■'V.Vv.
.r-'Ii

:h

-

..

Cree Mining Corp. Ltd.
April 17 filed 260,000 shares of
80 cents per share.

/

Eq. Tr. Ctfs.

stockholders^—underwritten

Co.

(Friday)

Hammill & Co. and

't-J

rities, Inc., New York.

(Offering

Common

Inc.—Il'------

Spartans Industries,

."•

__

June 19

Common

&(Simmons) 88,512 shares

Co., Inc. (6/15-19)
(letter of notification) 100,000 shares of com¬
(par 10 cents). Price—$1.25 per share. Pro¬
ceeds—For general corporate
purposes. Office—607-12th
Avenue, Huntington, W. Va. Underwriter—Best Secu¬
2

stock

(Pre¬

invited),, $7,200,000>,-

'

Crosby-Teletronics
v.r^

(Thursday)

\

$600,000

Continental Tobacco

CALENDAR

Worcester Gas Light Co
(Bids

•

April

.

>

iwill Ross, Inc.-/-_l-_''r_-_-;il__I'_____'<?*■

ISSUE

■

time.) Price—$3.75 per unit. Proceeds
development of gas properties. Office—908 Alamo
National Bank Building, San
Antonio, Texas.
Under¬
writer—Frank Lerner Co., New York, N. Y.

•

share of preferred and one share of common.

Debentures

^

and

program,

Underwriter—Putnam

Chicago Burlington & Quincy RR

—Common

(Alex Brown & Sons> .17,500.shares
Telectro Industries Corp.

construction

April 30 (letter of notification) 80,000 shares of 6% con¬
vertible preferred stock (par $3.50) and
80,000 shares of
.common stock
(par 10 cents) to be offered in units of

/ /

■

_Gilpin (Henry B.) Co._—

"

1959

purposes.

Consolidated Petroleum Industries, Inc.

;;;

Co.')

^

J.;... Gilpin (Henry B.) Co.—

its

Co., Hartford, Conn/,

June

AVm,• jAlex Brown. & Spnsj 8725,000

■

of

corporate

com¬

stock at any

mon

mon

May 15 filed 38,986 shares of common stock (no par), of
shares are being offered for subscription
by commbh stockholders of record June 3, 1959, at the

______

*&•■"*' •p■v -f'T/Lrv'$^8iSt8oo

--

Salt
Co.,.

&

42,071 shares for the account
Price—$3 per share. Proceeds—
To continue development of
products and control tech¬
niques for Incorporation into the company's present con¬
trol systems; and for
working capital. Office—404 South
Warminstejr Rd., Hatbora, Pa. Underwriters—Milton D.
Blauner &j Co., Inc., New York; and
Hallowell, Sulz¬
berger, , Jenks, Kirkland & Co., Philadelphia, Pa.

(Thursday)

<Oficring< io'stockholtlers—undefwTitten by ?A'llen' &

*

St.,

account of the company and
of a selling stockholder.

*

J

Main

•
Compudyne Corp. (6/15-19)
May 15 filed 214,071 shares of common stock (par 25
cents), of which 172,000 shares are to be offered for the

Research Corp
Common
glrf
;
'
(Johnston, Lemon & Co.>',100,000 shares-/
:
■{[ F edders Corp.
-Debentures
_

Pro-

So.

City, Utah. Underwriter—Earl J. Knudson
Salt Lake City, Utah.
/

Atlantic

g/jj

com-

Office—450

Lake

NEW
June

shares of

(10 cents per share).

par

investment.

ferred stock may be converted into two shares of
—For

which' 38,004

V/itock

*L

refinery. Underwriter—Lehman Brothers, New
Offering—Indefinite.

fork.

•

& Power Co."

Feb. 25 (letter of notification) $220,000 of 6% unsecured
debentures due April 1, 1964 and 1,100 shares of common

i

;>

instruct

39

Plastic Wire &

Cable

(Friday)

Corp

Common

(Offering to stockholders—underwritten by
Putnam & Co.) 40,000 shares

Co., Inc.)

$375,000

'

$4,000,000

^

"

Compudyne Corp.

'

(Milton
d-

Medearis

Commercial Corp..
___Pfd.-Comn$n
(Phoenix Securities) $300,000

American

D.

Blauner

•••--

jenks.

Co.,

Inc.

Kirkland

&

and
Co.)

(Best

Securities.

Inc.)

(General

Philip Morris

$642,213

(Lehman

Common

Eouipment

$125,000

■

(Winslow, Cohu & Stetson, Inc.) $300,000
Ideal Precision Meter Co., Inc.-_-^__
ComnHOn

f-'prl

(Charles Plohn & Co.) $015,625

;

V

Land

Equities,

(Torpie

Precon

(Charles Plohn & Co.)

.Debentures

and

Glore,

Forgan

&

/

-

Corp

(Charles

;

(Lehman

R.

Common

Plohn

Staats

Magnetics,

Brothers;

&

Co.)

Co. i

&

Saltzmani

20,000

shares

Wellington

Co.)

Co.

150.000

and

Taft

Electronics Corp

(Charles Plohn & Co.

Worthington

,_>__Common

Fennekohl

Broadcasting Co

—Common

(Harriman Ripley & Co. Inc.)

Hemphill, Hoyes

Common

Co.)

483,332 shares

Common

(David Barnes & Co., Inc.)

>

$330,000

(Charles

Plohn

Securities

Com.

&

Technical

$150,000

Co.)

Common

Tape Cable Electronics Co., Inc

$1.440.C00

Debens.

&

$900,000

Inc.)

shares

Products, Inc
,(B.

Inn.)

Co.

Tang Industries, Inc

,

Netherlands Securities Co..

and

&

&

Common

Co

Insurance

(Blair

Inc

*»lohn

First National Life

shares

100,000

—Common '
300,000 shares

Peabody & Co.)

Common

&

Electronics,
(Charles

(Kidder,

$360,000

Inc

____Common
$300,000

Federation, Inc

Common

Hallgarten &

&

Financial

$40,000,000

Co.)

(Monday)

Astronautics Engineering Corp

$550,000

Corp.)

Design

(William

Corp.—.____Com»|on

'

i

Investing

July 6

$750,000

Lyoir & Co., Inc.)- $200,000

Narda Ultrasonics
'I.')-

Brothers

Telemeter

■'»»
Common

Inc

(Ross,

../•

)

(H. C.) Oil Tool Co

h')T" S
■p0j

Inr*

Inc._

Smith

r*M-i

•

I_;_l-_______-Comnfdn

Co.-

Common

Co

Radar

,

Federal

Treat

Micronaire Elec. Med, Prods. Corp,__Com. & Warr.

Sulzberger®

Hallowell,

^"'Continental Tobacco Co., Inc.———
1
v

(Amos

Comnfon

^

&

Industries, Inc

■■

&

and Netherlands
$412,500

Co.

Co.,

Inc.)

P

Common

Operations, Inc
75,000 shares

(Bear, Stearns & Co.)

$875,000

San

fb'if;

Diego Imperial Corp

(White, Weld & Co

Reichhold

(Blyth

St. Joseph

&

Co.)

&

Co.,

Inc.)

400,000

a.m.

Co.

Vocaline

of

*y-" Walter
i.J

V,--

Oklahoma

America, Inc

vr

T

American
;

Jf,

*

Fakeries

&

Dillon.

-

,>

Co.)

330,000 shares

invited >

Ripley &

Securities

•

Financial

Goldman,

fpcurities

&

Polarad

Co.)

$7,500 "no

Associates, Inc.

Co.

Inc.

Corp.)

and

Electronics

(Reynolds & Co., Inc.

and

&

Co.)

and

The
$39,982,000

.

,

Webber,

(Paine,

shares

Lester Ryons

&

Co.)

$8,000,000

Mississippi

Webber,

P
Bids

Jackson

a.m.

EDT)

a.m.

&

Curtis

Northern States Power Co. (Minn.)
Common
(Offering to stockholders—bids to be invited) -714,000 shares

August 4

and

Loewi

&

Curtis)

Common
$17,150,000

Beat*
EDT)

Pennsylvania

Electric

(Tuesday)

Bonds,

Co

(Bids to be invited)

$2,000,000

&

$5,000,000

..Bonds

$8,000,000

-—I-Preferred

Jackson

'
11

(Bids 11

July 22 (Wednesday)

Co:")* 387,300 shs.

International Recreation Corp._

Common
100.000

(Tuesday)

Jersey Central Power & Light Co

(Thursday)

Co., Inc.)

-

Debentures
$6,000,000

Dominion

Common
William Blair &

Co

& Co.) 121.000 shares

Debentures
$4,506,500

Mallinckrodt Chemical Works.

July 14
Canada

■

'




25

(Paine,

Common

Corp./-

"
/WtHfior Peabody
Thriftimprt
Tnc

June

Telephone

Central

(Monday)

Properties

$6,000,000

Corp

Sachs & Co.

r-

Common
100,000 shares

Dilbert

Equip. Tr. Ctfs.
be

to

Debentures

Wesco

Bonds

$6,000,000

(Newhard, Cook & Co.)

(Municipality of Metropolitan)

(Harriman

EDT)

(S. D. Fuller & Co.)

Common
Co.)

a.m.

July 13

Corp.)

Co._
&:

(Bids 11

$10,000,000

Co.

(Thursday)

and

.Debentures-Common
&

Blyth & Co., Inc.)

Light, Heat & Power Co

Debentures

'M

Common

Peoples Dru<? stores. Inc
:"(Aiex. Brown & Sons and Kidder, Peabod'y

i'T'I'
.

$1,250,000

Toronto

(Wednesday)

Union

Union

Brothers

Southern Pacific Co
(Bids

Co

(Lehman Brothers,

•

&

Lehman

Food Fair Properties Development Irrc*._l__Bonds
(Eastman

~r

Loeb

Witter

(Dean

150.000 shares

Sons)

Co.,

Ryan Aeronautical

(Merrill Lynch, Pierce. Fenner & Smith Inc.) 60,000 shares

Microwave

-

^

Bonds

June 17

&

(Laird

Comnfon

(Alex. Erown

(Wednesday)

$1,000,000

Corp

Debentures

Staats & Co. and
$10,000,000

$20,000,000

Cement Co

Common

Corp

(Alex. Brown & Sons)

(Jim)

(William R.

...

Freres

Kuhn,

Bond*

-

Darlington & Co.)

CDT)

a.m.

(Tuesday)

Northrop Corp.

Bonds

Italy

(Lazard

-Common

(Jim)

'

-

Walter

_

Montecatini

Bonds

Voss Oil Co
(Hill,

10

$5,000,000

Co..

July 9

shares

(George O'Neill & Co., Inc.) 210,000 shares
-r:<?

EDT)

a.m.

June 24

'Bids 11 a.m. EDT) $10,000,000

?

Bonds

11

Gas

(Bids

CDT) $4,500,000

United Gas Imnrnvpmppt Co

;\l

(Bids

Common

Light & Power Co
(Bid? 11

^.

Illinois

July 7

Edison Co

Northern

(Tuesday)

shares

300.000

Chemicals, Inc

'

.

Brockton

^

(Tuesday)

Common
(Bache

*

-o

A. Hogle & Co.)

—.Fabrex Corp.

i

,

and J

June 16

....

June 23

Common
1,400,000 shar$r

September 17

$15,000,000

(Thursday)

Bonde

Georgia Power Co
(Bids to be invited)

$18,000,000

The Commercial and Financial Chronicle

Continued from page

West 40th

Underwriter—Myron A. Lomasney

Co., Inc.
notification) 1.000 shares of common
ctock (par S50 )to be offered for subscription by stock¬
holders <f record April 30. 1959. on the ba^is of one new
chare fbr each two shares held. Rights ojkpire Aug, 25,
1959
Unsubscribed shares will be offered to the public.
Crusader Life Insurance

*

3

June

(letter of

3Price—$150 per share.
Office—640

Minnesota

Proceeds—For/working capital.
Ave., Kansas .City. Kan. Under¬

"A

writer—None.

Corp., Pa<ss Christian,

shares of common stock, of which
offered on a one-for-one basis to
Stockholders of record May 15, 1959. The remaining
658 387 shares will be offered publicly by the under¬
writer on a "best efforts" basis. Price—To be supplied
'by amendment. Proceeds—For repayment of notes and
<tor working capital. Underwriter — To be supplied by
amendment.
<"
of 7% subordinated debentures,
attached warrants for the purchase of 100.000 shares of class A common stock. Price
1—At face amount (in units of $500 each). Proceeds—To
finance making of additional loans and to reduce shortterm debt. Office—3800-34th St., Mt. Rainier, Md. Un¬
derwriter—Paul C. Kimball & Co., Chicago, 111., on a
March 9 filed $500,000
due Jan. 2, 1974, with

~

•

best efforts basis.

if DeKalb-Ogle Telephone Co.
May 27 (letter of notification) 1.9,822 shares of common
stock to be offered to stockholders of record June 10,
1959, on the basis of one new share for each 10 shares
then held with an oversubscription privilege. Rights ex¬

pire on July 17,
Proceeds—For

a

At par ($10 per share).
construction program. Office—112 W.

1959. Price

Elm St., Sycamore,

DIT-IMCO,

—

111. Underwriter—None.

Inc.

15 filed 30,000 outstanding shares of common
only about 16,000 shares are to be offered.
JPrice—$10.50 per share. Proceeds—To selling stockhold¬
ers.
Office—911 Broadway, Kansas City, Mo.
Under¬
writer—Midland Securities Co., Inc., Kansas City, Mo.
April

stock,

Diversified Inc., Amarillo,
6

Jan.

filed

Texas

of common stock

300,000 shares

(par 50

cents). Price—$3 per share. Proceeds—For acquisition
cf undeveloped real estate, for organization or acquisi¬
of

tion

used

consumer

finance business, and balance to

be

capital. Underwriter — Investment
Colo., on a best efforts basis.

for working

Bervice Co., Denver.

Drexelbrook Associates

May 22 filed $2,000,000 of

partnership interests, to be

Price—$10,000 per unit. Proceeds—To
for various acquisitions.
Office — Broad &
Streets, Philadelphia, Pa. Underwriter—None.

offered in units.

be

used

Chestnut

Eckert Mineral Research,

filed

8

Electronic

Fanon

May

29

cents).

Inc.

notification) 150,000 shares of com¬

Industries,

Inc.

ment.

a
subsidiary for the
addition to a building now
being
subsidiary.
Office — 400 East
Spring Street, Bluffton, Ind. Underwriter—Fulton Reid
& Co., Inc., Cleveland, Ohio.

of constructing
leased from the

& Co., New York.

Telephone Co. of Clarinda

May 25

pany's books at the end of each 30-day period on a pro
each share now held. Un¬

Underwriter—None.

(letter of notification) 300,000 shares of com¬
stock. Price—At par ($1 per share). Proceeds—For
working capital. Office—100 E. Minner St., Oildale, Calif.

mon

rata basis of one-half share for

• Funds For
Business, Inc. (6/22-26)
May 8 filed 500,000 shares of class A stock (par 50 cents).
Price—$1.50 per share. Proceeds—For working capital.

subscribed shares will be offered to the public. Price—

Proceeds—Working capital,
Chestnut St., Clarinda, Iowa.

Estimated at $140 per share.
etc. Office—106-108 W.

Fedders

Corp., Long Island, N. Y.

Office—120 East 41st Street, New York. Underwriters—
Joseph Mandell & Co., Inc., New York; and Robert L.

(6/11)

May 12 filed $3,815,800 of sinking fund subordinated de¬
bentures, due May 31, 1979, with warrants to purchase

Ferman

on

June

11, 1959: rights to expire on. June 29.

dealers; and

the balance will

Underwriter

corporate purposes.

Price—

Dumont

Emery Industries, Inc.
May 21 filed $6,103,700 of 4%% convertible subordi¬
nated debentures due July 1, 1979, to be offered for sub¬
scription by common stockholders of record June 5,
1959, at the rate of $100 of debentures for each eight
chares of common stock then held; rights to expire on
June 30. Price—At par. Proceeds—To repay outstanding
bank loans and for general corporate purposes. Office—
Carew Tower, Cincinnati, Ohio. Underwriter—None.
,

•

Empire Miilwork Corp., Corona, N. Y.

Omaha, Neb.
filed $1,250,000 6% sinking fund debentures,
A, due May 1, 1969, of which $350,000 will be
offered, on an exchange basis, for a like amount of 5%

'k.

made.

ir Employees Benefit Co., Inc. •
• May 25 (letter of notification) 9,969 shares of 6% noncumulative preferred stock. Price — At par ($10 per
chare). Proceeds — For working capital. Office—6223
Blair Rd„ N. W., Washington, D. C. Underwriter—None.
Enamo-Bord Products Inc.

May 14 (letter of notification) 61,708 shares of class A
common stock
(par 50 cents) to be offered to stock¬
holders. Unsubscribed shares will be offered to the pubtic. Price—$2.50 per share. Proceeds—For working cap¬
ital and to obtain new dealerships. Office — East 2626
Trent Ave., Spokane, Wash. Underwriter—Pacific InterMountain Securities, Inc., for any publicly offered shares.

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Br ice—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
contracts. Proceeds—For investment, etc. Office—2480
16th Street, N. W., Washington, D. C. Underwriter—
,

series

if Federal Equipment Co. (6/15)
May 22 (letter of notification) 100,000 shares of common

debentures which the company plans to retire. The re¬

maining $900,000
Price—Par.

Fabrex Corp.

(6/16)

May 21 filed 300,000 shares of capital stock (par $1) of
which 150,000 shares are to be sold for account of 'the
company
ers.

and 150,000 shares for certain selling stockhold¬

Price—To be supplied by amendment. Proceeds—To

prepay

outstanding obligations and for general corporate




will

be

offered

Proceeds—For advances to

.

•

General American Transportation Corp.
May 25 filed 107,491 shares of common stock (par $1.25).
These shares were issued pursuant to a March,
1959,

Finance For

Industry, Inc.
shares of class A common stock
Price—At par ($1.50 per share). Proceeds—For working
:apital. Office—508 Ainsley Bldg,, Miami, Fla. Underwriter
R. F. Campeau Co., Penobscot Bldg,, Detroit.
Dec.

debentures

publicly.
company's sub¬
sidiary, Moffett Engineering, Inc.— Underwriter—First
Trust Co. of Lincoln, Neb.
-

(no par). Price—$3 per share. Proceeds—To ac¬
quire all of the capital stock of Byer's Lumber Co., Inc.
and for working capital. Office—North West & Lincoln
Sts., Carlisle, Pa. Underwriter—Winslow, Cohu & Stet¬
son. Inc., New York, N. Y.
stock

16 filed 200,000

contract

whereby the company acquired the issued and
outstanding capital stock of Traylor Engineering &
Manufacturing Co.
V.
...

—

'

Vlich.
o

General Aniline & Film Corp,,

'

v/

Federations, Inc. (7/6)
May 27 filed 300,000 shares of capital stock (par $1). A
portion thereof (unspecified; to be supplied by amend¬
ment) is to be offered for the account of the company
and the balance for certain selling stockholders. PriceTo be supplied by amendment. Proceeds—To repay a
bank loan and for working capital. Office—210 West
Seventh

St., Los Angeles,

>ar) and 1,537,500 shares of
Proceeds—To the Attorney

filed 75,000

General Merchandising Corp., Memphis, Tenn.
class "A" common stock
(par one cent). Price—$10 per share. Proceeds—Far
working capital and general corporate purposes. Underwriter
Union
Securities Investment
Co., Memphis,
Tenn. Statement effective April 24.
Feb. 18 filed 250,000 shares of

common

—

Co., Inc., New York.

Flintkote Co., New York

General Precision Equipment Corp. (6/26)
May 26 filed 105,927 shares of cumulative convertible
preference stock ($50 liquidating value) to be offered
for subscription by holders of the company's common
stock and holders of its $1.60 cumulative convertible
preference stock, in the ratio of one share of new pre¬
.

May 20 filed 227,368 shares of common stock, of which
173,286 shares are to be offered to certain officers and
key employees of Flintkote and its subsidiaries under
the "Flintkote Stock Option Plan"; 16,771 shares are
subject to options granted by Flintkote in substitution
for options granted by Orangeburg Manufacturing Co.,
Inc., to certain of its officers and key employees; and
37,311 shares are subject to options granted in substitu¬
tion of options granted by Blue Diamond Corp. to certain
of its officer 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
of Blue Diamond into Flintkote.
L.+V,

ferred for each 11 shares of

The

market

or

current

change. Proceeds
—None.

To be related

price

—

on

Stock

and 30,000

of

stock.

common

Price

Proceeds—To

Warrants will

sidiaries.
man

be

To be determined by
be used for loans to sub¬
—

Office—Philadelphia, Pa. Underwriter—East¬
Dillon, Union Securities & Co., New York.

Food-Fair Properties, Inc.
*3ee Food Fair Properties Development Inc., above.

a

selling stockholder.vPrice—$1 per

improved

merchandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Fine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff, Ark.

Fluorspar Corp. of America

May 1969.

shares for

share. Proceeds—For furniture inventory and

General Waterworks Corp.
March 31 filed 16,131 shares of $5 voting preferred

Feb. 5 (letter of notification—as amended) 300,000 shares
of common stock, Price—At par ($1 per share). Pro¬

valid up to
amendment.

4

April 6 (letter of notification) 225,000 shares of com¬
capital stock (par 25 cents). Of the total, 195,000

To selling stockholders. Underwriter

• Food Fair
Properties Development Inc. (6/17)
May 5 Tiled together with Food Fair Properties Inc. (1)
$7,500,000 of 25-year collateral trust bonds, due May 15,
1984 of Food Fair Properties Development, Inc. and (2)
warrants for the purchase of shares of common stock
of Food Fair Properties.
It is proposed to offer these
securities in units totaling 150,000, with each unit ponsisting of a $50 bond and a warrant entitling the pur¬

...

mon

•

mining expenses. Office—4334 S. E. 74th
Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties, Inc., 4314 N. E. 96th Ave,, Portland, Ore.

Corp., and Tucker, Anthony & R. L.

shares are to be-offered for the account of the company

Ex¬

ceeds—For

First Boston

General Underwriters Inc.

to the then current

the New York

stock held on June

Day, both of New York.

143,789 shares of common stock. This com¬
pany 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 shares
*of stock are to be received by certain shareholders of
—

common

26; rights to expire on July 13. Each holder of the $1.60
preference series will have the right to subscribe for the
new stock in the ratio of one new share for each 1634
shares of $1.60 preference stock held on June 26; rights
to expire on July 13. Price—To be supplied by amend¬
ment. Proceeds—For working capital. Underwriters—

June 4 filed

Glen Falls. Price

General oL the United States.

on
Corp.
(jointly); Kuhn, Loeb & Co.; Tubman
brothers, and Glore, Forgan & Co. (jointly). Bide—Had
scheduled to be received up to 3:45 p.m. (EDT) am
day 13 at Room 654, 101 Indiana Ave^, N. W., Washingon 25. D. C.. but bidding has been postponed.

Calif. Underwriter—Kidder,

shares of

*

B stock, (per $1).

>een

it First National Life Insurance Co.
4

common

Underwriter—To be determined by competitive bidding,
hrobable bidders: Blyth & Co. Inc., and The First Bos¬

Peabody & Co., New York.

June

New York

Jan. 14, 1957 filed 426,988 shares' of common A stock (bp

Financial

chase of 5 shares

None.

26

York.

+ Flintkote Co.

April 17 filed 95,000 outstanding shares' of common stock.
•Price — $10.25 per share.
Proceeds — To selling stock¬
holders. Underwriter—None. No public offering will be

in Washington, D. C.
Office—580
York, N. Y. Underwriter—None.

Gate City Steel Co., Inc.,

May

Allen & Co., New

Underwriter—Blair &

April 6 (letter of notification) 300,000 Shares of class A
common stock (par 25 cents). Price—$1 per share. Pro¬
ceeds—For inventory, equipment, working capital, etc.
Office—901 S. Lake Street, Farndngton, N. Mex. Under¬
writer—Investment Service Co., Denver, Colo.

Plaza Hotel

Fifth Avenue, New

be used for general

—

Co., Inc., Miami, Fla.

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

$100 per unit. Proceeds—To be used for the most part
for the purchasing of products by company's
distributors
and

&

Futterman-Dupont Hotel Co.

152,632 shares of common stock to Joe offered for sub¬
scription by common stockholders in units of $100 of
debentures with warrant for the purchase of four shares
of stock at the rate of one unit for each 50 shares held

Few York, N. Y.

Electric City Supply Co.

an

Fran-Well, Inc.-

May 19 (letter of notification) 1,531 shares of common
stock (par $100) to be offered to stockholders for a pe¬
riod of 60 days at book value as reflected by the com¬

(7/6)
stock (par $4).
Price—$12 .per share. Proceeds—To increase capital and
surplus. Office—1230 East Camelback, Phoenix, Ark.

stock (par 50 cents).

1,200 shares of preferred

Proceeds—To be advanced to

purpose

Price—$2 per share. Proceeds
—For mining and selling of ore. Office—110 E. Main St.,
Florence, Colo.. Underwriter—Harris Securities Corp.,

March 27 (letter of
mon

(letter of notification)

which

standing bank Joan; and the balance will provide work¬
ing capital to finance increased inventories and accounts
receivable.
Office—98 Berrirnan St., Brooklyn, N. Y.
Sherman

>

Franklin Electric Co., Inc.
May 12 filed 40,000 shares of common stock (no par), of
20,000 shares are to be offered for account of
company, and 20,000 shares for the account of certain
selling stockholders. Price—To be supplied by amend¬

(6/22-26;

filed 150,000 shares of common stock (par 20
Price—$3 per share. Proceeds—To retire an out¬

Farmers Mutual

1

working capital. Office—922 Jefferson St., P. O. Box
1059, Lynchburg, Va. Underwriter—None.

.

•

Thursday, June 11, 1959

for

Receipts for 80,000

American/Depositary

Ordinary Registered .Shares. Depositary—Morgan Guar¬
anty Trust Co., of^New York.

•

Inc.

Dalton Finance,

*

.

stock. Price—At par (S25 per share). Proceeds—To
pur¬
chase land; construction of a warehouse and factory and

(Ene^nd)

• Fairey Co. Ltd.
June

Miss.

May 26 filed 1,500,000
€41 613 shares will be

June

Co., New York.

Underwriter—L. D.

J

Crusader Oil & Gas

:

.

• Foodco Realty, Inc.

Business—Textile, converting.
Office—115
St.. New York, Nf. Y. Underwriter—Bache &

purposes.

39

and development of highly tech¬
electrical and electronic equipment.
& Co.. New York.

conducting research
nical and specialized

:

.

(2660)

40

►

stock

(par $100) and 66,131 shares of 80-cent dividend voting
preferred stock tconvertible—par $1). The com¬
pany proposes to offer one share of the 80-cent dividend
second preferred stock for each Share of New Rochelle
Water Co. and one share of its $5 preferred and one
share of the 80-cent dividend second preferred for each
share of New Rochelle $3.59 preferred (including accu¬
mulated unpaid dividends from November, 1950). The
offer is conditioned upon acceptance by holders of 89%

second

of New Rochelle stock.

Office-—3219

Philadelphia'Pike,

Claymont, Del. Statement" effective May 12.
Giant Food Properties, Inc., Washington, D. C.
May 19 filed $680,000 5*4% sinking fund debentures (GT
series), due Dec. 1, 1971, together with 74,800 shares of
common stock.
Price—To be supplied by amendment.
Proceeds—To Richard Borden Industries, Inc., the sell¬
ing stockholder. Underwriters—Auchincloss, Parker &
■n- v
"
hington, D. C.; and Kidder, Peabody &

Co.,'NewYork,

.Volume 189

Number 5854

♦

.

.

The Commercial and Financial Chronicle

•
Gilpin (Henry B.) Co., Baltimore, Md. (6/11)
May 19 filed $725,000 6% convertible subordinated de¬
bentures due June 1, 1974, and 17,500 shares of class A
common
stock (no par). Price — To be supplied by
amendment. Proceeds—To repay notes payable and for
other corporate purposes. Underwriter—Alex. Brown &
Sons, Baltimore, Md.
■ *
— vv.

Glasco Corp., Muncie, Ind.
May 25 filed 100,000 shares of common stock (par $1).
Price—$10 per share. Proceeds—To be added to the gen¬
eral funds of the company and be used, together with

★

Hoffman Motors Corp.

Noel
Offering—Postponed indefinitely.

★ Holmes

Nov. 13 filed 2,500,000 shares of common stock (par $1)
to be offered by company viz: (1) to holders of common
stock (par $4) of Government Employees Insurance Co.,
on the basis of one warrant per share of stock held (1,are

stock

outstanding); (2) to holders of
$1.50) of Government Employees

now

(par

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
Employees Corp., on the basis of Vz warrant per share of
stock heldj(as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
converted into common stock prior to the record date,
a total of 164,733 common shares would be outstanding.
Price—$3 per share. Proceeds—For capital and surplus.
Gffice—Government Employees Insurance Bldg., Wash¬
ington, D. C. ^Underwriters — Johnston, Lemon & Co.,
Washington, D. C.; Eastman Dillon, Union Securities &
Go., New York; -and Abacus Fund, Boston, Mass. Offer¬
ing—-Indefinitely postponed* ; •
• Greenwich

Gas Co.

May 22 (letter of notification) 23,000 shares of common
stock (no par) being offered to stockholders of record
June 1, 1959 on the basis of one new share for each
eight shares then held with additional subscription rights
subject to allotment.
Rights expire June 19.
Unsubscribed shares will be offered to the public. Price—$12.50
per share. Proceeds—To pay bank loans and for working
capital. Office—=33 Greenwich Ave., Greenwich, Conn.
^Underwriter—F. L. Putnam & Co.^ Inc., Boston, Mass.

»

(no par—
share). Price—To be supplied by
amendment. Proceeds—To selling stockholders. Under¬
writer—City Securities Corp., Indianapolis, Ind.
per

4^

Hathaway Industries, Inc.
June 9 filed 300,000 outstanding shares of

York.

Co. Ltd.

common

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—

Orleans, La.

Underwriter—Arnold & Crane, New
/ ■''
•/
•'
'Z

May 25

stock.

maining

shares,

200,000

or

f American Stock Exchange,
rent

at

time

the

of

such

a

business associates

portion

thereof,

on

the

or otherwise, at prices cur¬
sales.
Proceeds—To selling

stockholder, Seaboard Allied Milling Corp. Office—
Hathaway St., Syracuse, N. Y. Underwriter—None.

]
-'

j.

Hausman Steel Co., Toledo, Ohio

June 2 filed 80,000

shares of cbmmon stock. Price—To
/ be supplied by amendment. Proceeds — To retire short
/term bank loans, for general corporate purposes and
/ for expansion of the company's business. Underwriters—
/Howard, Weil, I^bousse, Friedrichs & Co., New Orleans,
iLa.; and The Ohio Company, Columbus, Ohio.

/

Highway Trailer Industries, Inc.

,

-/ June

9

filed

1,105,294 shares of common stock to be
/ offered for subscription by present stockholders at the
rate of

-

To

one

new

share for each two shares held. Price—

be

supplied by amendment. Proceeds—To be used
for new equipment and plant improvement; to be used
for inventory and production requirements of the Hazelton, Pa.,: pldnt and the increased production of the

v'Edgerton, Wis., plant; and for discharge of bank loan

//and other corporate
•

purposes.
Office—250 Park Ave.,
New York, N. Y. Agents—Allen & Co. and Van
Alstyne,
Noel & Co., both of New York.

/'

Hereon Electronics Corp.
/May 21 (letter of notification) 100,000 shares of
-

common

stock (par one cent). Price—$3 per share. Proceeds—To

defray expenses; to pay outstanding notes; to purchase
.equipment and to further manufacturing facilities.
Of-

/ fice—481 Washington St., Newark, N. J. Name Change—
Company formerly was known as Hermetic Connector
"Corp. Underwriter—Richard Bruce & Co., Inc., 26 Broadway, New York, N. Y.
•

Herold Radio &

Electronics Corp. (6/22)
,:May 18 filed $1,500,000 of 6% convertible subordinated
.debentures due June 15, 1974. Price—100% of
principal
amount. Proceeds—To reduce notes payable, excise
taxes,
payroll taxes and othter current liabilities. Office—716
South Columbus

Ave., Mount Vernon, N. Y. Underwrit¬

ers—Ira Haupt & Co., Hirsch & Co. and Amos Treat &
■

Co., Inc., all of New York.

Hickerson Bros. Truck Co., Inc.
March 11 (letter of notification) 285,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—Tc
pay existing liabilities; for additional equipment; and
for working capital.
Office—East Tenth Street, P. O
Box 68, Great
Bend, Kan. Underwriter—Birkenmayef

,j;
)

&

Co., Denver, Colo.




April 24 filed 225,000 shares of common stock. Price—90
share. Proceeds—To defray the costs of explo¬
ration and development of properties and for the ac-.
quisition of other properties; also for other corporat®
purposes.
Office—1950 Broad St., Regina, Sask., Can.
Underwriter
Laird & Rumball, Regina, Sask., Can.

cents per

—

(6/22-26)

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
and

^Hudson Radio & Television Corp.
8 filed 200,000 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

June

stockholder.

Price

—

To

be

supplied

by

amendment.

Proceeds—To be utilized in reduction of

obligations, the
acquisition and/or development of additional inventory
lines, warehousing facilities and sales outlets; the adop¬
tion of various sales promotional
programs, and as addi¬
tional working capital.
Office—37 West 65th St., New
York, N. Y. Underwriter—None.
»

V

../

■'

•

.

,

-v,:..

/•/

j

I

.-■/

i.-

★ Hunter Mountain

Development Corp.,
Hunter, N. Y.
>////
June 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
per unit. Proceeds — For purchase. of equipment, for
building of

lodge, and for other corporate purposes. Un¬
derwriter—Myron A. Lomasney & Co., New York.
★ Ideal Precision Meter
Co., Inc. (6/15-19)
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 ol

certain indebtedness. Office
126 Greenpoint Avenue,
Brooklyn, N. Y. Underwriter—Charles Plohn & Co., New
—

York."-

//

"

/

•..■//

•/•'///..

-

•/.'

★ Imperial Corp.
May 26 (letter of notification) 218,950 shares of common
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office — 704 Simms Bldg., Albuquerque,
:

Imperial Growth Fund, Inc.

March 2 filed 600,000 shares of common stock. Price—Al
market. * Proceeds — For investment.
Office — 60 Mar¬

quette Ave., Minneapolis, Minn. /Underwriter
neapolis Associates, Inc., Minneapolis, Minn.

—

Min¬

materials, for plant facilities, for sales promotion,
working capital. Office—Sutton, Mass. Under¬

raw

for

writers—Charles Plohn

1

(letter
convertible 6%

Information

Systems, Inc., Skokie, III.
April 21 filed 170,000 shares of common stock to be of¬
fered for subscription by common stockholders of Panellit, Inc., at rate of one new share for each three Panellit
common shares held of record May 15, 1959. Price—$3.50
per share. Proceeds—To pay notes, for research and de¬
velopment costs; and working capital. Underwriter—
None.

Industry, Inc.

May 22

(letter of notification) 100,000 shares of com¬
(par 25 cents). Price—$3 per share. Proceeds
—For working capital. Office — 101 New South Road,
mon

•> ./•.

/•

Securi¬
•

/

.

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 the com¬
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)i

ding.

Weld

Bids—Expected to be received up to 11 a.m. (EDT)
July 14. •
- •'/•
■
/■■■•/. . r:•

Kaiser Aluminum & Chemical

on

Corp.

May 11 filed 64,028 shares of 4%% cumulative convert¬
ible (1959 series) preference stock (par $100) and 128,051 shares of common stock (par 33V3 cents) issued in
exchange for the outstanding stock of Mexico Refrac¬
tories Co. through merger.. Proceeds—To selling stock¬
holders. Underwriter—None.
•

Kaltman

(D.)

Statement effective June 5.

(6/11) /
May 13 filed 1,406,141 shares of common stock (par 59
cents) to be offered by Noma Lites, Inc., to the holder®
of its 745,184 outstanding common shares at the rate of
& Co., Inc.

1.9 shares of Kaltman common for each share
common

June

26.

stock

held

Price—To

on

be

10; rights, to expire on
supplied by amendment. Pro¬

ceeds— To

Underwriter

selling stockholder.
Stearns & Co., New York.

• Kilroy

of Noma

June

—

Bear,

1960 Co.

(W. S.)

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. /

Equities, Inc., Santa Monica, Calif.
(6/15-19)

May 12 (letter of notification) 200,000 shares of class A
common stock (par one cent).
Price—$1 per share. Pro¬
ceeds—For general corporate purposes. Underwriter—

Ross, Lyon & Co., Inc., New York, N. Y.
Laure Exploration Co., Inc., Arnett, Okla.
April 30 filed (by amendment) 2,000,000 shares of com¬
mon stock
(par $1). Price—$2 per share. Proceeds—For
machinery and equipment and exploration purpose®.

Underwriter—None.

ic Laymen Life Insurance Co.
May 27 (letter of notification) 60,000 shares of common
•stock (par $1) to be offered to stockholders of record
on May 29, 1959 on a sharc-for-share basis.
Rights ex¬
pire June 30, 1959, j Price—$5 per share. Proceeds—For
working capital. Office—1047 Broadway, Anderson, Ind.
Underwriter—None.

stock

Hicksville, L. I., N. Y. Underwriter—D. A. Lomasney &
Co., New York, N. Y.
International Bank,

Washington, D. C.
of notes (series B, $500,000, twoyear, 3% per unit; series C, $1,000,000, four-year 4% pel
unit; and series D, $3,500,000, 6-year, 5% per unit). Pilit
—100% of principal amount
Proceeds — For workia#
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.

Dec. 29 filed $5,000,000

ic International Management Corp., Norfolk, Va.
May 7 (letter of notification) 222,000 shares of common
stock.
Price—At par ($1 per share).
Proceeds—For
working capital and general purposes. Underwriter—
None.

Railroads Weighing Corp.
(letter of notification) 82,626 shares of com¬
stock (par $1) to be offered for subscription by

International

April 16
mon

Netherlands

and

Land

of notification) $200,000 subordinated
debentures ($1,000 denomination) and

Instruments for

Co.

&

ties Co., Inc., both of New York.

Industrial Leasing Corp.

$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.

are

and employees of Hathaway Industries at $6 per share.
In addition, Seaboard may wish to sell publicly the re¬

?

.

Ltd.

(letter of notification) 5,000 shares of common
stock. Price—At par ($10 per share).
Proceeds—For
repayment of debt; purchase of equipment and for work¬
ing capital. Underwriter—Mohawk Valley Investing Co.,

to offer 100,000 shares for sale to the

1

Irando Oil & Exploration,

Jefferson Wire & Cable Corp.

June

shares

July 31, 1964, to be offered in units of $1,000. Prla*
100% of principal amount. Proceeds—For invert-?
ment. Office—511 Fifth Ave., New York, N. Y. Under¬
writer—None.
/
z.
" '
-.
—At

Household Gas Service, Inc., Clinton, N. Y.

part of the 672,990 shares (53.43%)
held by Seaboard Allied Milling Corp.
Seaboard plans

''These

due

...

N. M. Underwriter—None.

Hamilton Cosco, Inc., Columbus, Ind.
June 3 filed 50,000 shares of common stock

$3 stated value

New

Funding Corp. of New York (7/1)
10% subordinated debenture*

filed $500,000 of

17

Inc., Utica, N. Y.

Government Employees Variable Annuity Life
Insurance Co.

common

Co.,

14,780 shares of capital stock to be offered
to present stockholders on the basis of one new share

New

derwriter—Smith, Hague & Co., Detroit, Mich.

f

(D. H.)

&

Investors

Feb.

June 5 filed

Orleans.

334,570 shares

common

Price—$10 per share.
Underwriter—Van
Alstyne,-

and

„

stock

(par $1).
Proceeds—To selling stockholder.

retained

earnings, to maintain its program of research
development in the over-all field of commercial
refrigeration and more particularly in that of general
vending-machine design; and to reduce or eliminate the
necessity for seasonal short-term bank borrowings. Un¬

•

March 9 filed 250,000 shares of

common

stockholders at rate of

one

new

share for each

four shares held.

Price—$3 per share. Proceeds — For
research and development costs and working capital
Office—415 Spruce St., Hammond, Ind.
Underwriter—
None.

it Lee Summit Corp.
May 27 (letter ot" notification)
common

stock.

150,000" shares of class B
($1 per share). Proceeds
Office — 158 N. Virginia St.,

Price—At par

—For

mining expenses.
Reno., Nev. Underwriter—None.

,•"''/

.

.

Lefcourt

Realty Corp.
...
Jan. 29 filed 3,492,000 shares of common stock, of whiafc
2,622,000 shares were issued in exchange for all
the common stock of Desser & Garfield, Inc., and D. G.
? &

R,, Inc.; 750,000 shares will be used for the exerfciB*
an option by
the company to purchase from B|f
Trail Corp. some 3,784.9 acres of land ofi *
before June 15, 1959; and the remaining 120,000 share®
were sold for the account of a selling stockholder during
April, 1959. Underwriter—None.
;
,Z
/ ' V
/
of

Mound

,

• Lifetime Pools Equipment Corp., Renovo, Pa.
(letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For purchase of machinery and equipment; advertising
and working capital.
Underwriter—First Washington
Corp., Pittsburgh, Pa.
*
•
June 1

,

„

•

Long Island Lighting Co.
May 28 filed $25,000,000 of first mortgage bonds series
,

Price—$17.50 per share. Proceeds—For
construction and acquisition. Office—60 State St., Boston,
Mass. Underwriter—Paine, Webber, Jackson & Curtis,

K, due 1989. Proceeds—To be used for construction of
utility plant and to pay short-term bank loans made
for such purposes. Underwriter—To be determined by
competitive bidding. Probable bidders:. Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc. and. The First Boston Corp.
(jointly); W. C. Langley & Co., and Smith, Barney &
Co. (jointly). Bids—Expected to be any time after Juiie

New York and Boston.

18

International

Recreation Corp.

(6/25)
May 14 filed 2,750,000 shares of common stock
cents).

980,000

The issue

was

later reduced

(par 50

by amendment to

shares.

International Tuna

Corp.
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.
Office
—Pascagoula, Miss. Underwriter—Gates, Carter & Co„
Gulfport, Miss.

•

on

72

hours'

telegraphic notice.

/ '.
~
''
Sept. 29 filed 350,000 shares of common stocka Price—-$1
share. Proceeds—For the acquisition of properties
LuHoc Mining Corp.

per

under

option and

for various

geological expenses, test

Continued,

on

page

42

42

The Commerrcial and Financial Chronicle

(2662)

Continued from page

writers

drilling, purchase of equipment, and other similar pur¬
poses.
Offices—Wilmington, Del., and Emporium, Pa.
Underwriter—None.\ Statement effective.
'

M. & 8. 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 Block, Saska¬
toon, Saskatchewan, Canada.
Underwriter — Cumber¬
land Securities

Ltd., Regina, Saskatchewan, Canada.

^f Mallinckrodt Chemical Works
Jjine 8 filed $6,000,000 of convertible subordinated de¬
bentures due July 1, 1974.
Price—To be supplied by
amendment. Proceeds—To retire outstanding 6% cumula¬
tive preferred stock, series B, and for general corporate
purposes.

Office—3600 North Second St., St. Louis, Mo.

# Mansfield Tire & Rubber Co.

May 7 filed $5,038,300 of 5% convertible subordinated
debentures, due June 1, 1974, being offered for subscrip¬
tion by common stockholders of record June 2, 1959;
rights to expire on June 18. Subscription Basis—$100

principal amount of debentures for each 28 shares of
jppmmon. Proceeds—To pay short-term bank loans, and
to augment working capital.
Office—515 Newman St.,
Mansfield, Ohio. Underwriter—A. G. Becker & Co.,
Chicago, in.

Mary Carter Paint Co.
March 30 (letter of notification) 37,500 shares of com¬
mon stock
(par $1) of which 25,000 shares are being
offered by the company, out of authorized but unissued
stock, and 12,500 shares are being offered by John F.
Crosby, Spring Lake, N. J. Price—$8 per share. Proceeds
—For payment of outstanding loans and working capi¬
tal, and to selling stockholder. Office—Gunn Highway

Kd., Tampa 7, Fla.

and Salomon Bros. &

Underwriter—W. W.

ir Mutual Income Foundation, Columbus, Ohio
///
8
filed
(by amendment)
an
additional 900,000

June

/■Y//

P Medearis

Industries, Inc.
May 14 filed 200,000 shares of

I Mercantile Acceptance Corp. of-California
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 Franeisco, Calif. Underwriter—Guardian Securities
Corp., San Francisco, Calif,
Micronaire Electro Medical Products Corp.

Microwave Associates, Inc., Burlington,

Mass.

(6/17)

May 21 filed 100,000 ishares of common stock (par $1).
price—To be supplied by amendment. Proceeds—For
general corporate purposes. Business—Develops and pro¬
components

for

radar

systems.

Underwriter—

Jbehman Brothers, New York,
t

MillsapOil & Gas Co.
Dec. 23 filed 602,786 shares of
Proceeds

—

I
common stock.

Price—$1

For additional working capital.

Office—Siloam Springs, Ark.

Underwriter—None.

Mississippi Power Co. (6/25)
May 29 filed $5J)00,000 of first mortgage bonds due July
t, 1989/ Proceeds—For construction program.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Eastman Dillon,
fJhion Securities & Co. and Equitable Securities Corp.
(jointly); Merrill Lynch, Pierce, Fenner & Smith; Kid¬
der, Peabody & Co. and White, Weld & Co. (jointly).
Bids—TO be received
up to 11 a.m. (EDT) on June 25
at the Pffice of ihe service company, Southern
Services,

|nc., Room 1600, 250 Park Ave., New York 17, N. Y.
Mobile Credit Corp.

Price—$10

per

Share.

Proceeds—To provide additional
working capital
the purchase of vendors' interests in
conditional

sales contracts and other like evidences of
indebtedness.
Office—11746 Appleton Ave., Detroit, Mich. Underwriter

—None.

Shares of (he company. The debentures will be offered in
jmits consisting of a debenture in the principal amount
of $1,000 and a warrant to purchase a
number of capital
shares having a market value of
approximately $500 at
date of issue.. Price — To be
supplied by amendment.

Business—The largest company in Italy in both chemical
production and mining. Proceeds—For construction in
the United States of a plant for the manufacture of
iso*

■'

i

.-w

'

(letter of notification) 150,000 shares of com¬
Price—At par ($2 per share).
Proceeds—
equipment, inventory and working capital. Ad¬
dress—P. O. Box 1658, Lakeland, Fla.
Underwriter—
R. F. Campeau Co., Inc., Detroit, Mich.
:
£
For

stock.

insurance

'

estate. Office—9 Glihtdn St./ Newark, N. J.
—None.
- •
"
;> -■'» ■-■ ;
■'
'

in

cents.

Fund.

Price—At

market.

-

•




.

Proceeds—To retire banks

JiiVes^nnijeiif'Ca^JncI/ New Orleans, La/

.

O. K. Rubber

Welders, Jnc.xJ- -:i</
Dec. 15 filed ?60,600 shares of: common stock*, $43,333.37
of 3 % %. debentures maturing on or bef ore May 6, 196$*
$692,000 of,-6%: debentures maturing on or before Dec/
31, 1974 and $123,000 of 7% debentures due en or before
May 6, 1965 ! J/he, company proposes to make a public,
offering of!25,000, shares ©f common stock a t $ 10 per),
share.
The .remaining shares and the debentures, ar*
subject to an exchange offer between this corporation
.O. K. Rubber, Jnc./'and O. K; Ko-op Rubber Welding
System, on Jin alternative basis. Proceeds—Of the public!
offering, yfrlL.be ;used for additional working capital
and/or to service part of the company's debt. Office—
551
Rio GrandP Ave« Littleton. Colo.
Underwriter—
None. Statemwfc effective April 13.
•
/
"i
•

Oklahoma: Cement Co.

(6/24)

.i

/

•

May 21 filed $3;600,000 of subordinated debentures due
June 1,

cents)

2$

1974, and 360,000 shares of common stock (par

to be' offered- in- units each consisting of $100 of
10 shares of common stock:
Price—To

debenture^ and

be supplied:by amendment; Proceeds — For expansion,1
general corporate purposes, arid the balance for working
capital. Office—Beacon Bldg., Tulsa, Okla.'Underwriter

—Laird

& Co.

Oreclone

Underwrite!'—Nonei

Y

Corp., Wilmington, Del.

'

Y]

Concentrating Corp., Virginia, Minn.

~

-

.

Nationwide Small

Business

j..w

Capital Investing

r

•

^

y

'/,/;.'///■

r ^

.

;

Sept. 29 (letter of notification) 300,000 shares of

; /

1

•

cumu¬

lative voting and non-assessable comihon* stock.
At par

($1

per

Price—■
share). Proceeds—For organisational ex¬

penses and first three months' operational expenses. Of¬

fice—1250 Wilshire

Blvd., Los Angeles 17, Calif; Under¬
4, Calif. - •
^

writer—Waldron & Co., San Francisco
Nedow Oil Tool Co.

VY^Y/YV/'■» Y'tYY;'">*

May 5 (letter of notification) 150,000 shares of common
Price—$2 per share. Proceeds—To
acquire fishing tools for leasing; and for working capital.
Address—P. O. Box 672, Odessa, Texas. Underwriters-—
Stock (par 50 cents).

To be designated.

Y"' Y-Y

'T* Y''

New York

Shipbuilding Corp.
;
83,334 shares of common stock, to be
offered in exchange for common stock of
Higgins, Inc.,
at the rate of one share of New York
Shipbuilding com¬
mon for each 24 shares of
Higgins common. The offer
.

March

20

filed

will expire on June 30.

Statement effective

ApriF 16/

North American Acceptance Corp.
"Y ^
April 29 (letter of notification) $300,000 of 6% 10-year
subordinated debentures to be offered for
subscription

by

stockholders

in

denominations

of

$100, $500 and
Rights will expire July 31, 1959. Price—At
par. Proceeds—For working capital.
Office—Suite 487;
795 Peachtree Street, N. E.,
Atlanta, Ga. Underwriter—
$1,000 each.

None.

_,/

<-v ■'

•

,; '•

Northern Illinois Gas Co.

(6/23) /'
■
May 27 filed $20,000,000 of first mortgage bonds, due
June 1, 1984.
Proceeds—To retire bank loans, and for
construction expenditures.
Underwriter—To be deter¬
mined by competitive bidding. Probable
bidders:,Halsey,
&
10

Inc.; The First Boston Corp.; Glore, Forgan
Co.; Blyth & Co. Inc. Bids—To be received up to
a.m. (CDT) on June 23.

^Northern States Power Co.

(7/22)

r

June 9 filed 952,033 shares of common stock to be of¬
fered for subscription by common stockholders on the
basis of one new share for each 15 shares held. Proceeds

payment of

expenditures, including the
then existing bank Joans (estimated at
Underwriter—To be determined by com¬

any

$14,000,000).
petitive bidding. Probable bidders: Lehman Brothers and
Riter & Co. (jointly); The First Boston Corp., Blyth &
Co., Inc., and Kuhn, Loeb & Co. (jointly); White, Weld
& Co. and Glore, Forgan & Co. (jointly); Merrill
Lynch,
Pierce, Fenner & Smith, Inc. Bids—Expected to be re¬
ceived on July 22.
'
,

Northwest
S.

Defense

Minerals.

Inc.,

Keystone,

Dak.

May 4 (letter of notification) 300,000 shares of

.

Ozark Air

-

-

(6/20) • ""
v •
May 20 filed 132,944 shares of general common stock
(par $1) to be offered tb holders of class A and class B
common, stock
(not inciuding' class B coriimon held by
voting trustees)* and holders of voting trust certificates
for class B coriimon stock, on the basis of one new share
of general common stock for each dine shares of class A
common, class
common (not including class B shares
held by voting trustees), or voting trust certificates for
riassB-common.. Price—$4.75 per share. - Proceeds-r-For
purchase of-additional flight equipment. Address—P. O,.
Box 6007, .Lambert Field, St. Louis, Ma. Underwriters—
Newhard, Gook & Co/arid Yates, Heitner & Woods, both
of St. Louis," Mo. ;
:/ v . '*
:
Paco

Lines, Inc.

Products, Iric./ Pacolet, A. C. 5

'

•

■'■*//

May 11 (letter* of notification) 2,000 shares of 7% pre¬
ferred stock. Price—At par. ($50 per shate).' Proceeds—
To pay bank loans and for-griieral corporate purposes:
Underwriters—A?M. -Law & Go., Spartanburg; S. C.; and

Clark, Landstreet & Kirkpatrick, Inc., NashviUe, Tenn!
Paddock <of California
March

4

30 filed4 51,847 /outstanding

shares ^of common

'brily t6 stockholders and
The definite *Corp; arid will not ^be offered
.to the:general public/'/Price—$3' per share..: Proceeds-/
To selling strickhblders, The Refinite Corp; Office^—8400
Santa Moriica Boulevard jLos Angeles,* Gafif./Underwrite

•dstock

(par $1) being offered

directors of

er—None: ^Statement

-

effective May

15/

: r

,

.

-

-

/

Paramount Mirtual Funci, Inc. /. Y.
Jan. 2 filed 300,000 .sharesbf capital stock.

/ Y
Price—MinL
mum purchase of shares is $2,500. Proceeds—For investr
taent. Office—404 North Roxbury Drive, Beverly Hills,
Underwriter-—Paramount Mutual Fund Manager

Calif

ment Co.

Statement effective

April 14.

,

ic Participating Annuity Life Insurance Co*
June 4 filed $2,000,000 of. variable arinuity policies. Pror
ceeds.r— For investment/ Office. — Hathcock Building,
Fayetteyille, Ark. Underwriter—None.
Pearce-Uible Co.

May 11 filed .555,000 shares of common stock (par $1), of
which 500,000 shares, are to be offered publicly, and the
remaining 55,000 shares are subject to sale under Stock
Purchase Options granted to employees of the company.
Price—$3.5.0. per share, to public. Proceeds—For acquisi¬
tion and development of land and construction of houses
for sale.
Office—3850 Beach Boulevard, Jacksonville,
Fla. Business-YConstruction of single-family dwellings
for sale to. home owners.
Underwriter—Pierce, Carrison,

common

•

.4r Overnite -Transportation ,Co.
y
May 7 (letter ,of notification) 8,000 shares of common
stock (par 50 cents) to be offered to officers and em?
ployees of, the company.. Price—$11 per share.. Office
—501
S.
14th* •' Street, (lichmond/ Va.
Underwriter—
None.
.•! V"
/ : • / / ' ;i;- ■'/' •" ;
">'

Corp.
■ YYY'"'
April 24 filed 500,000 shares of capital stock (par 50
cents). Price — $1 per share. Proceeds — For working
capital and investments. Office—Hartsdale, N. Y.
Un¬
Naylor Engineering & Research Corp,

j-

<

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.;-: '
'
■
:
.v-: /
■/'' r'' '-"1
4

Proceeds—For

■

Pr|(p^Y-$2 ppif. share.

Assets

on or prior to Dec. 31, 1955,
employees. Price—$4.44 per share. Pro¬
increase capital and surplus., Office — 2300

the

/

Joans and .for rinvestment purposes. OfficeT--5i3 Interna^
tional Trade tert/ New t Orleans, La.
ttdwwriter -r-rj

policies issued

investment.

;

w

★ National Securities & Research Corp/!
June 9 filed (by amendment)/ an additional 15,000,000
shares

Underwriter
•

Oil, Gas A, Minerals, Inc..,,v !■ ajrs. ri.P. ■?rt
April 2 filedn200,0;o;p: shares "of common stock (par 35,

.

North Central Ave., Phoenix. Ariz.

u nit.
Proceeds—To fee available,
irf real estate syndicates arid Other real

Price—$100 per.

for Investment

National Life & Casualty Insurance Co.
March 25 filed 250,000 shares of common capital stock
to be offered to holders of certain of company's life

ceeds—To

-,

share.

new

—For construction program

Monteca tin i( 6/24)
June 2 filed-$10,000,000 of sinking fund dollar deben¬
tures due June 15, 1979, and warrants to purchase capital

.

\

National Citrus Corp.

Stuart & Co.

une.8 filed 15J)00 shares of common stock to be offered
for sale in Michigan and Pennsylvania.

c

/4;Y;'

Saltzman, New York.

.■

60,000 shares of common,

Office Buildings of America, Inc.r
- v
\
April 6 fiied 91,809 shares of class A stock (par $1) and
io^OP
(par ,$1) to be
offered in "units ol'mrie^elaSs A shOfes and one class
B,;

..

200,000 three-year warrants, exercisable at $3, of which
150,000 have been issued to certain stockholders and employees. Price—$275 per unit. Proceeds—To discharge
indebtedness; for expansion of sales efforts; and for
working capitaL Office—79 Madison Ave., New York.
Underwriter—General Investing Corp., New York.

for

/■■■'/■//1 YY-.YY'.

.

derwriter—None.

(6/22)
June 1 /filed 200,000 shares and 50,000 one-year war¬
rants for the purchase of common stock, to be offered for
public sale in units of 100 shares of common stock and
25 warrants. The registration also includes an additional

share.

/

and to certain

(6/22-26)
common stock

(par 20
cents). Price—$3.75 per share.
Proceeds—For general
corporate purposes. Office — 42 Broadway, New York,
N. Y. Underwriter—Amos Treat & Co,, Inc., New York.

per

Price—

Foundation.

in the

Narda Ultrasonics Corp. (6/i5);
4 /: Y:Y:Y/;
April 29 filed 20,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds—
To retire a $100,000 outstanding bank loan and the bal¬
ance will be used for general corporate purposes. Office—
Westbury, Long Island, N. Y. Underwriter — Torpie &

mon

(share of class A, voting, and three shares of class B,
non-voting stock at $40 per unit. Proceeds—To purchase
machinery and equipment and for working capital. Ad¬
dress—P. O. Box 755, Norman, Okla. Underwriter—

duces

interest

Proceeds—For investment.

At market.

v-;

■

(pafj$2.50). Price—$5 per share.
Proceeds—For;?
working capital.
Office — Cushman & Gaffney, Fair¬
banks, Alaska. •' Underwriter^None.1
'
V -'Y

•

shares of beneficial

.*•/,/**■••

■

i;

stock

Y:'YYY/Y

Multi-Amp Electronic Corp. v. ;&/■< : w • - ;
>.'■ '///
(letter of notification) 99;500 shares of common
stock (par 10 cents).
Price^-$3 per share.* Proceeds—
To purchase building; for research, development, equip¬
ment and
machinery, etc.;/;and for working capital.
Business—Portable and laboratory instruments for test¬
ing etc.
Office—465 Lehigh Avenue, Union, N. J. Un¬
derwriter—G. Everett Parks & Co., Inc., 52 Broadway,
New York, N. Y.
Offering expected any day.

<

-•

* Northwest, Inc.
June 1 (letter of notification)

Hutzlb^i(jointly)r5Bids^Expecf^d

June '30.

on

April 20

^Maturizer Co.
June 1 (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

•

be received

to

Schroeder & Co., New York 5, N. Y.

|JonC.

••v

June

May 1

Underwriter—Newhard, Cook & Co., St. Louis, Mo.

at Henderson

(par 10 cents). Price—SI per share. Proceeds—
exploring and recovering strategic metals and pro-/
during same. Underwriter—Caldwell Co., 26 Broadway^
New York, NHY; Offering—Expected in July.
:
:1^
For

—

•fa Montreal, Canada, (6/36)
,
r
Y:
/
5 filed $8,100,000 of sinking fund debentures for
local improvements and $11,900,000 of sinking fund de¬
bentures for public works, due Jan. 1/1980.
Price—To
be supplied by amendment. Proceeds—For various pub¬
lic works projects and for repayment of borrowings
incurred for such purposes.: Underwriter—To'be 'de¬
termined
by competitive bidding. ( Probable bidders:
Lehman Brothers, White, Weld & Co., Eastman Dillon,
Union Securities & Co. and Blyth &;Go., Inc. (jointly);
Shields & Co.. Halsev. Stuart &Uo. Inc., Savard & Hart

Thursday, June 11, 1959

stock

polypropylene and other petrochemicals. Under¬
Lazard Freres & Co., Lehman Brothers and
Kuhn, Loeb & Co., all of New York.
Y/.*;4Y/
static

41

...

.

Wulbeni,. Inc., Jacksonville, Fla., and fcur lather

firms.

Volume

Number 5854

189

.

.

The Commercial and Financial Chronicle

.

warrant; for. each five shares of stock

Packman Plan Fund, Inc., Pasadena, Calif. :
Mat" 19 filer# 2(1,000; shares of common jrtock (par $1)
Price-^At1 market. * Proceeds—For ~ investment.,
Under*

writer—Investors Investments Corp., Pasadena,

acquired. The war¬
acquire one share of
common foreachfive' shares of stock
acquired. Price—$2
per share. Proceeds—F6r working capital.
Office—2000
W. COlfax Ave., Denver, Colo. Underwriters—Amos C.
Sudler & Cq., and Purvis &. Co., both of
Denver, Colo.
rants

•

Calif.

PeoplesDrug Stores, Inc. ,(6/17).%. Y.-;
May 19 filed;l21,000 shares of common, stock (par $5).
Price—To *be

entitle' the

holder

to

Raindor Gold

by -amendment. JPr^eeds—For

>iippiied

will

Mines, Ltd.
(letter of notification) 290,000 shares of common
(par $1). Price—$1 per; share. Proceeds—To prove

Jan. 28

expansion/program. Undervmters^Alex' Brown & Sons*
Baltimore, Mtf.;Vand Kidder? Peabodjr &£o:,;NewYork.

*

stock

-

and for road and camp, construction. Office-—At
Suite 322,200/Bay St.j Toronto, Ont., Canada, and c/o T.

,«p pre

Permachem"Corp., New York Yi Y
March,,3t filed 2,041,331 shares of class A'copimori stock
0
(par 10 cents) and 1,917 shares of class B common stock
(par 10 cents)This covers the transfer of certain shares
pursuant;, to option agreements. Price, — At over-thecounter market-prices. Underwriter—None.
;

Philadelphia Electric/Co.*//' s's?V.

Arnold,

.

.

'

•>
-

May'7 filed :640,306/shares^pf> commonustoek^ (no par)
beilig offered for subscription by common 'stockholders
of record June 2, 1959, on the basis of one new share

.

Cirek

WHson

Sano & Co;

New York

J.

Bumson.

Underwriter—

N. Y.

Raytheon Manufacturing Co.
May. l filed 350,602 shares of common stock (par $5) and
100,000 ^.nareS',of 51/2% series (cumulative), serial pre;ferredv stbcV (par $50). These shares were or may be
issued ad a result'; of the pierger, of Machlett Labora¬
tories, Inc., into'Raytheon Co. (formerly Raytheon Manufacturing Co.).
'
-

<
shades then held; rights will expire on June
Reeves Soiihdcraft Corp., Danbury, Conn.
23. .Price^$4d.5& per share. Procceds — .To repay bank
April 30 filed 22,000 shares of common stock (par five
loans- aii# fori" construction• «jjrpgram. Underwriters •. Scents) "to be sold to Lewis Cowan
Merrill upon exercise
Drexel • & Co; and Morgan Stanley &/£<)., both of New, x>f option. Price-—$3 per share. Proceeds—To Hazard E.
-York.T/ Reeves, theselling stockholder. .-Underwriter-—None. No

Y 'YY,

June 2 filed $40,000,000 of 25-year

furies due 197k51 Price
-

Proceeds

—-

—

^r

publid offering-is planned; "'.//*;/ Y;

:

★ Reheis Co., Inc.
:/;
amendment/ ? June 5 filed 87,000 outstanding shares of class A stock.
loans.
UnderPrice—$5 per share. Proceeds—To selling stockholders.

sinking fund deben-

TO reduce; short-term

bank

,

'

Y*

__

bf comm^'stockp to be of¬

• Reichhqld Chemicals; Inc.

exchange for common stockmf-Kennedy's, Inc.,
in the rati© of IV2 shares of PhillipSrVan Heusen stock

fered in

-To be; added to the general

Reiter-Foster Oil

March 30 filed $1,500,000 Of 6 % convertible debentures
•

be, offered

subscription

Stock at the rate of

one

by holders

;

'

Polarad Electronics Corp.

(6/17)
stock

(par $1).

Price—To be supplied by amendment'. Proceeds

— For
working capital and other corporate purposes. Office—
43-20 34th Street, Long Island City, N. Y. Underwriter—
Kidder, Peabody & Co., New York.

Precon Electronics

•

-

—

Price—$12

per

share.

Proceeds—For

Underwriter—None.

Statement effective June

1.

ing stockholders. Underwriter—Francis I. duPont & Co.,
Royal Dutch Petroleum Co./Shell Transport &
&.
Trading Co.
May 27 Royal Dutch filed 794,203 shares (nominal par
value of 20 Netherlands.Guilders each), and Shell Trans¬
port filed 1,191,304 ordinary shares (£ nominal value).
According to the prospectus, an offer has been made
by Royal Dutch and Shell Transport to Canadian Eagle
Oil Company Limited, for the whole of its assets and

.

business. Pursuant to the offer, there would be allotted
to Canadian

Eagle, for distribution in kind to its share¬

holders, 3,971,012 fully paid shares of Royal Dutch and
5,956,518 fully paid ordinary shares of Shell Transport.
Bataafse

Petroleum

,

—

.

,

Offering—Expected

any

day.

it Queenstown Gardens, Inc.
June 5 filed 140 units, each.unit consisting of 700 shares~
of class B non-voting common stock. ' Price—$5,000 per
unit.
Proceeds—To acquire a 1061 apartment develop¬
ment
known
as
Queenstown
Apartments in Prince
Georges County, Md. Underwriter—None.
Radar Design

Corp., Syracuse, N. Y. (6/22-26)
May 26 filed»120,000 shares of common stock ($1 par).
Price-r-$3 per .share. Proceeds — To liquidate notes and
mortgages, and for new equipment and working capital.
Underwriter—Charles Plohn & Co., New York.
Radinsky Investment Co.

-

(6/15-19)

acquisitions; to

repay two' bank

loans; for ad£

yance to a subsidiary; to repay the remaining;-unpaid

balance of the purchase price of the
company's new- of¬
fice building; and for
others corporate purposes. Office—
1400 Fifth Ave., San

Diego, Calif. Underwriters—White,

Weld & Co., New York; and J. A,
Hogle & Co., Salt Lake
City and New York.

"A Sears, Roebuck & CoSi.
June

8

filed 25,000 memberships in the
Savings and
Sharing Pension Fund of Sears, Roebuck & Ce.
employees, together with 2,000,000* shares of the com-

Profit

pany's

common

stock which may be purchased* by the

Fund.

Y

Securities Acceptance Corp.
*
May 25 (letter of notification) 10,000 shares of 5%. cumu¬
lative preferred stock
(par $25). Price~^$25.50 per share*
Proceeds—For working capital. Office—304 S. 18th

St.,
Omaha, Neb. Underwriters—First Trust Co.. of .Lincoln,
Lincoln, Neb;; Wachob-Bender Corp., Omaha: Neb., and
Cruttenden, Podesta & Co., Chicago, 111.
'
r

-

Jfane 1 filed 100,000 shaires of common stock. Each pur¬
chaser of stock is entitled to receive one stock purchase

Silver Creek Precision Corp.
30 filed 1,550,000 shares of common stock

March
10

cents), of which 200,000 shares

•
Ryan Aeronautical Co., San Diego, Calif. (6/24)
May 26 filed 330,000 shares of common stock (no par),
of which 275,000 shares will be offered on behalf of the

company and 55,000 for selling stockholders.
Price—To
be supplied by amendment. Proceeds—Amount accruing
to the company

writer—Dean

will be added to working capital. Under¬
& Co., San Francisco, Calif., and

Witter

New York City.
•

-■

St. Joseph Light & Power Co.

(6/16)
$4,500,000 of first mortgage bonds due
June 1, 1989.
Proceeds—To repay bank loans. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Otis & Co., Inc.;
May

18 filed

Smith, Barney & Co., Glore, Forgan & Co. and Blair &
Co. Inc. (jointly); Eastman Dillon, Union Securities &

are

(par

to be offered for

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. U11derwriter—^Maltz, Greenwald & Co., New York.

•<

Sip'n Snack Shoppes, Inc., Philadelphia,. Pa.
March 31 filed 200,000 shares of common stock. Prioc--»
$2 per share. Proceeds—To pay loans and for new
equip•nent. Undei writer—Sano &
Co., New York.
• '*
e Smith (H.
C.) Oil Tool Co. (6/22)
May 20 filed 100,000 shares of capital stock (no par).
Price
To be supplied by amendment. Proceed —' For
research and development of new
products;; to increase
inventories; and for the acquisition of new production
machinery and tools. Office -r 14930 South- San- Pedro
Blvd., Compton, Calif. Underwriter—William R. Staats
& Co., Los
Angeles, Calif.
—

Soundscriber Corp.
May 13 filed 126,254 shares of common stock tor. be Of¬
fered for subscription by common stockholders at. the
rate of

one

share for each three shares held:

new

Price
Proceeds—To bo applied for costs, in¬
to be incurred in connection .with, the in¬

—$14 per share.
curred

and

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 Mid-

Avenue,

North Haven,

None.

Maatschappij, N.V., a company of
the Royal Dutch/Shell group of companies, which owns
stock (par one cent) of which 170,000 shares are to be
about 21% of the issued share capital of Canadian Eagle,
sold by the company and 30,000 shares by a selling /
will waive its right to participate in such distribution.
stockholder, Price
$1.50 per share
Proceeds — For t
Canadian Eagle shareholders owning „the remaining 23,general expansion and working capital. Office—1108 •
826,072 ordinary shares of Canadian Eagle will there¬
16th Street, N.W., Washington 6, D. C. Underwriterfore receive two Royal Dutch shares and three Shell
John C. Kahn Co., Washington, D. C.
Transport ordinary shares in respect of every 12 shares
Puritan Chemical Corp.
of Canadian Eagle held. The offer is to be voted upqn
March 30 filed 500,000 shares of capital stock (par 10
by Canadian Eagle shareholders at a meeting to be held
cents.
Price—$1.25 per share.^ Proceeds^-For working
July 21, 1959. After the shares of Royal Dutch and Shell
capital and general corporate purposes/-Office—2 South
Transport have been distributed to Canadian Eagle
Broadway, Lawrence, Mass. Underwriter—t)unne & Co., - shareholders, Canadian Eagle is to be dissolved.




further

dletown

-

-

Underwriter—None.

1
Prudential Enterprises, Inc.
Jan. 15 (letter of notification) 200,000 shares of common

New York.

June 16.

Diego Imperial Corp.

.

common

Lynchburg, Ya., and New York.

,

April 17 filed 90,000 outstanding shares of common stock.
Price
Related" to' the"*c^rCnT* mark^t price
American Stock Exchange. Proceeds—To selling stock¬

Huron, Mich.

To

-A Rowe Furniture Corp., Salem, Va.
June 9 filed 165,000 outstanding shares of common stock.
Price—To be supplied by amendment. Proceeds—To sell-

York, N. Y.

holders. Office—Port

of June

Roosevelt-Consolidated Building Associates

—None.

St., New York, N. Y. Underwrifers--r€harles Plohn

Pressed Metals of America, Inc.

as

18. Price — At principal
pay debt and for develop¬

; Interests, to be offered for sale in units. Price—$10,000
per unit.:
Proceeds—For general corporate purposes.
Office—60 East 42nd Street, New York.
Underwriter

& Co. and Netherlands Securities Co., Inc., both of New

1

shares held

June

May 4 filed $5,580,000 of Participations in Partnership

CorpY (6/15-19).

April. 6 filed-175,000 shares of common'stock (par 75
cents)Price — $5 per share. Proceeds — For working
| capital; to reimburse the predecessor for certain devel¬
opment expenses; for inventories and work in process;
and other general corporate purposes/ Office—120 E.
41st

subscription by common
$100 principal amount of

market; ?Precaeds-i-Foi» investment. Office—Englewood,
N. J. Underwriter—First Mutual Securities of America,

stock
(par $1).
working capital.

.

common

—

of

A Ronson Corp., Woodbridge, N. J.
May 21 (letter of notification) 20,000 shares of

outstanding bank loans; for.,construction expendi¬
tures and for other corporate purposes.
UnderwriterPutnam. & Go., Hartford, Conn.
■
Y.
i

on

for

common

Inc. /1

of outstanding

held. Price—To be supplied by amendment. Proceeds—To

May 1 filed/100,000 shares of

rate

ment o£ present properties and acquisition and developUnderwriter—

repay

r

the

' ^enl; ^i^WittonaUoils andvgas properties,
' EmanueLl?eet]en & Ca^New York.
Research Investing Fund of America, Inc.
' ' Feb. 24 faled 200,000 shares of capital stock. Price—At

share for each five shares

new

at

rights to expire
amount,\ { Proceeds

'

for

being offered

3;

*Mbfck (par $5) to

common

1969,

debentures for each 300

//;;;C.7/3f:
filed 40,000 shares of

due

stockholders

a

lard

June 5

Corp.

*

plant in Rhode Island and for
general cmporate purposes. Business—Primarily engaged
in the* compoiihding and coloring of thermoplastic raw
materials, and the sale of the resultant product. Office-—
Hicksville, Long Island, N. Y. Underwriter—^Filor, BU1-

r.

funds of the company; and

ing capital. Office—525* North Broadway, White Plains,
; N. Y. Underwriter—Blyth & Co,, Inc., New York.

•

^ Smith^New York City:
:
?
^
* Plbbtic Wite & Cable Corp., '/ewett'City, Conn.

••

11 is expected that about $10,000,000 will be applied to its
construction program and the balance added to work-

•'Plastic Materials & Polymers, Inc. (6/19)
May 11 fifed 143,750 shares of common stock (par 10
cents). Price — Expected at $4 per share. Proceeds
construction of

(6/16)

May 22 filed 400,000 shares of common stock (par $1).
Price—Related; at the -time of offering to the then cur¬
rent price on the New York Stock Exchange. Proceeds

May 6 (letter of notification) 81,714 shares of common
stock (par $1) being offered to stockholders at the rate
of 1/14 of a share for each share held as of tMay 22, 1959.
Rights to expire on June, 30; 1959./ Pricc/-r- $3.50 per
share. Proceeds—For working capital. - Address—Smith
Reynolds Airport,■ Winston-Salem, N. ?G. . Underwriter—
None. /'
.;//•;;//? Y//<;v.V; r:Y..W -iv' /":

—For

on

May 18 filed 1,400,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds — For

the

1

' V*-'

^

Apiil' S

& Co.; Equitable Securities Corp.; First
Bids-—Expected to be received up- to? 3/1

Corp.

(CDT)

Sait

To, be supplied by

Business—Manufactures and sells fine chemicals in bulk

_

Co.; White, Weld
Boston
a.m.

.

for. each 20

-/ PhilipMorris Inc; (6/22)

43

(2663)

Conn.

Underwriter—

...

•
Spartans Industries, Inc. (6/12)
•
I
May 12 filed 200,000 shares of common stock (par 91),
Price—To be supplied by amendment^ Proceeds—For
general corporate purposes. Business—A major producer
and distributor of a diversified line of
popular price;
basic style apparel for men, women andi children. Office
—1 West 34th St., New York
1, N. Y. Underwriters -^
Shearson, Hammill & Co., New York; and J. C. Bradford
& Co., Nashville, Tenn.
•
Spiegel, Inc.
/
May 8 filed $15,417,500 of convertible subordinated de*
bentures due June 1, 1984, being- offered for
subscription/'
by common stockholders of record June \ 1959, Oil th^

basis of $100 principal amount of debentures for each
12 shares held; rights to expire on June 22.- Proceeds—
To be added to the general funds of the
company to

bq

available principally to- finance
receivable.

its increasing accounts
Underwriter—Wertheim & Co., New York,

Sports

Arenas (Delaware) Inc.
461,950' shares of common stock (par one
Price—At the market (but in no event less thae
16 per share). Proceeds—To selling stockholders; Office
Nov.

18 filed

cent).

—33 Great Neck

Rd., Great Neck, N. Y. Underwriter—

None
Standard Electric

Co., Inc.
(letter of notification) 10,000 shares of com*
mon stock (par $25).
Price—$27.50 per share. Proceeds
—To purchase equipment, erect and equip a semi-fire*
proof building and for working capital.
Office—*3016
Austin Highway, San Antonio, Texas. Underwriter—
Bache & Co., San Antonio, Texas.
March 31

-Ar Stetson (John B.) Co.
May 28 (letter of notification)

1,798 shares of common
(no par) to be offered to employees under the
Employee Stcck Option Plan. Price—$23.28; per share..
Proceeds—For working capital.
Office—5th Street, and
Montgomery Avenue, Philadelphia 22, Pa. Underwriter
stock

—None.

Suffolk

;

Gas

Corp.
May 8 (letter of notification) 6,000 shares of common
stock (par $2.50) to be offered for subscription by stockholders; unsubscribed shares to public. Price—To stocks
holders, $6.75 per share. Office—151 N. Main Street,
Suffolk, Va. Underwriter—Strader & Co., Lie., Lynch¬
burg, Va.
Sunray Mid-Continent Oil Co.
May 19 filed 525,000 shares of common stock to. be of¬
fered in exchange for common stock of Suntide Refining
Co. in the ratio of one share of Sunray for each three
shares of Suntide. The offer is conditioiial upon the de*

posit of sufficient shares of Suntide so that Sunray

Continued

on

iRl

page

44

44

The Commercial and Financial Chronicle

(2664)

Oontinued from page

43.

.

.

"~"v-

j

..

^

ent mortgage debt of the
company, to pay off short-term bank.borrowings, and for working capital. Office—
■1515 Cuming
St:, Omaha, Neb. Underwriters — J. Cliff
„

outstanding Suntide shares;
Rahel & Co., Omaha, Neb.; and The First Trust Co. of
i':' 'ur "
Lincoln, Neb/4/;-/... "?.VTv"•■"''«.
Superior Window Co. (.6-/26) /,t<•' n:-£?:*'. •*:
tvfay 15 filed 50,000 shares of 70-cent cumulative doh^"
4c Toronto (Municipality of Metropolitan) Canada
vertible preferred stock, (par $8) and 125,000 shares of
(6/24)
June 4 filed $3.9,982,080 of serial and sinking fund de¬
class A common stock (par 10 cents). Price—For pre¬
ferred stock, $10 per share; and for common stock, $4
bentures, of which $6,759,000 mature from June 1, 1960
to June 1, 1974, and $33,223,000 mature as follows:
per-share. Proceeds—To purchase the assets of Superior
$32,741,000 on June 1, 1979; $142,000 June 1, 1984, and $340,'Trucking Co.; for repayment of notes; and for general
000 June 1, 1989.; Price—To be supplied by amendment.
corporate purposes. Office—625 E. 10th Ave., Hialeah,
Proceeds—For various public works projects.
pfcu Underwriter—Cruttenden, Podcsta & Co., Chicago
Underat least 90% of 'the
tbiderwriter—Nona.

©iyn
G

•

end New York,

:

•

"

O

Tang Industries, Inc. (7/6-10)' ■ "
25 filed 110,000 shares of common stock (par 10
eents. Price—$3 per share. Proceeds—To purchase ma¬
chinery and equipment; for research and development;
fer .certain expenses and for working capital.
Office—
49 Jones Road, Waltham, Mass.
Underwriter — David4
Barnes & Co., Inc., New York. ,,
Mav

%

.

investmenf|:etc. Office—1832
Street, N. W., Washington, D. C. Underwriter—None.

M

Proceeds—For

cts.

contt

Raceway
fr-s:
:
:
May 25 filed 1,000,000 shares of common stock (par $2
in Canadian funds). Price—$4.50 per share. Proceeds—*
To construct and operate a racing plant; and for-work-•
Victoria

t

V.nWWr

■

ing capital and other corporate, purposes.;-Office—Notre
Street, Winnipeg, Canada.iUnder-. *

Dame Avenue at King

writer—G. Everett Parks & Co., Inc. ^

Offer¬

New York.

ing—Expected in about two months//.1 /

Victory Markets, Inc.-',;
J'/.: :
May 25 (letter of notification) 20,000 shares of class A
common stock
(par $2). Price—$14.52 per-share. Pro-:*
ceeds—For inventory and equipment and for working •
capital. Office—54 E. Main St., Norwich, N. Y.
Under¬
writer—S. D. Lunt & Co., Buffalo, N.. Y.
.
* : >>;
y

June 4 filed 1,900,000 shares of common stock.
Price—
$1 per share. Proceeds—For salvage operations. Office
—1500 Massachusetts Avenue, N. W., Washington, D. C*.
/

Insurance Co. off America

filed $4,000,000 of Variable Annuity Policies.1
less than $120 a year for- annual premium
contracts and no less than $1,500-for single premium

it: Treasure Hunters, Inc.

f

Virginia Electric & Power Co.y
April 28 filed 710,000 shares of common stock (par $8) ;
being offered for subscription by common stockholders
•

Trinity Small Business Investment Co.

4

Tape Cable Electronics Co., Inc. (7/6-10)
£une 8 filed 110,000 shares of common stock. Price—
$3.75 per share. Proceeds—For the purchase and con¬
struction of necessary machinery and equipment, the
promotion and sale of Tape Cable, and for working
capital. Office—790 Linden Ave., Rochester, N. Y. Un¬

April 17 filed 235,000 shares of capital stock (par $1).
Price
$10.75 per share.
Proceeds — For investment.
Office—South Main Street, Greenville* S. C.
Under¬
writer—To be sup
by amendment.
—

derwriters—Charles Plohn & Co. and Netherlands Secu¬

Technical Operations

Inc. (7/6)
May 29 filed 75,000 shares of common stock. Price—To
lie supplied by amendment. Proceeds—For construction
fmogram, for investment in subsidiaries, for working
capital and other corporate purposes. Office — South

1 Tyce Engineering Corp.
Underwriter—Bear, Stearns &
" - - TV
<
*'*' /May 6 (letter of notification) 100/100 shares of

the basis of one n§w

share for each 20 shares held of
2,1959 (with an oversubscription.privilege);;
rights to expire on or about June 18. Price per share is
$33. Proceeds—For construction program Underwriter—
Merrill Lynch, Pierce, Fenner & Smith, Inc.
on

record June

4<c Tungsten Mountain Mining Co.
May 21 (letter of notification) $100,000 principal amount
of 7% first mortgage convertible
bonds, to be offered
in denominations of $500 and $1,000 each.
Price—100%
of principal amount. Proceeds—For.
construction^ instal¬
lation of machinery and equipment and working
capital.
Office—511 Securities Building, Seattle 1, Wash. Under¬
writer—H. P., Pratt & Co., Seattle 4, Wash.

rities Co., Inc., both of New York.

•

Variable Annuity Life

Transcon Petroleum & Development

Underwriter—None.

Utility Appliance Corp., Los Angelas,' Calif..
April 9 (letter of notification), 50,000 shares of. common>
(par $1).
Price—$5.75 pec share. . Proceeds—To '
selling stockholders. Office—4851 South Alameda Street,'
Los Angeles 58, Calif. Underwriter ^Dempsey-Tegeler /
& Co., Los Angeles, CalifM *7 r.a3~T:C T;n~} r
stock

Price—No

Corp.,
Mangum* Okla.
March 20 (letter of notification) 300,000 shares of com¬
mon stock;
Price—At par ($! per snare). Proceeds—
For development of oil properties.
Underwriter—First
Investment Planning Co., Washington, D. C.

—

Thursday, June 11, 1959

.,

April 21

Securities Corp., both of New York.

>v Taft Broadcasting Co. (7/6) *•
'*■
'
5 filed 483,382 shares of common stock (par $1).:?
price
To be supplied
by amendment. Proceeds —
To selling stockholders. Office—800 Broadway, Cincin¬
nati, Ohio. Underwriter—ttarriman Ripley & Co. Inc.,

Ave., Burlington, Mass.
Co., New York.
'

•

writers—Harriman Ripley & Co. Inc. and The Dominion

•

June

New York.

•• -

.

•

Vocaline Co. of

America, Inc.

^ v."V

(6/16)

May 19 filed 210,000 shares of common stock (par $1.50),
of which 180,000 shares are for the account of the com¬
30,000 shares for selling stockholders.

Price—
by amendment. Proceeds — To retire
notes, to expand facilities and for working capital and
general corporate purposes.
Underwriter — George,
pany and

To

be supplied

O'Neill &

common

Co., Inc., New York.

Voss Oil Co.

:stock (no par). Price — $3 per share. Proceeds — For
Technology, Inc.
r r! :?
working capital. Office — 809 G. Street, Chula Vista,
May 15 filed 325,000 shares of common stock (par 10
Calif.
Underwriter—Pacific Coast Securities Co., San
•cents).
Price—$4 per share.
Proceeds—To pay off in.
•Francisco, Calif.
fell the subscription of Microwave "Electronic Tube
United Gas Improvement Co.
Co., Inc. stock, represented by notes, to pay for im¬
(6/16)
provements upon the plant leased to Microwave, ,• and * •May 12 filed $10,000,000 of first mortgage bonds due

(6/16)

•

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
and for working capital and other corporate
Office—211 South Seneca St., Newcastle, Wyo.
Underwriter—Hill, Darlington & Co., New York.
"Z y

program,

'

purposes.

fer^working capital.
Office—1500 Massachusetts Ave-: I June 1, 1984. Proceeds—To be used to reimburse, in part,
ciucr N. W., Washington, D. C.
Underwriter —vE*:'L. / the treasury of the company for property additions and
Wolf Associates, Inc., Washington, District .of .Columbia;., improvements and to meet, in part, the cost of the conO Telectro Industries
tinning construction program, including the retirement
Corp.'(6/11-12)-'
-

6/Tay 6 filed 200,000 shares of common stock (par 10
Cents). Price—$3 per share. Proceeds—Fop- additional
tnachinery and equipment; to retire outstanding balances
Of

a

V-loan to

bank and to

a

commerolal credit

a

o

Probable bidders:

com¬

pany; and the balance will be added to working capital
©nd used for general corporate purposes. Office—35-16
37th

St., Long Island City, N. Y.
^teBlauner & Co., Inc., New York.

Underwriter—Milton
,

Telemeter Magnetics, Inc. (6/22)/
I/fey 26 filed 150,000 shares of common stock (par 10
•cents). Price—To be supplied by amendment. Proceeds
—To

be

the reduction of short-term' bank
working capital purposes as a concequence of the expanding business of the
company.
Cosiness—The company is engaged principally in de¬
sign, development, manufacture and sale of digital data
fcamdling equipment and components for the computer
©nd-data processing industry. - Underwriters—Lehman
Brothers; Ilallgarten & Co. and Hemphill, Noyes & Co.,
applied

#oarfs incurred

to

V,

j

Ten Keys, Inc., Providence, R. I.
April 28 filed 973,000 shares of capital stock (par $1).
Brice—$5.40 per share. Proceeds—For investment. Office
—512 Hospital Trust Bldg., Providence, R. I. Distributor
—E. R. Davenport & Co.,
Providence, R. I.
>V 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
tor the purchase of the company's

price of $30
-each

per

amount.

common

stock at the

shares and at the rate of 10 shares for

$1,000 of debentures. Price
Proceeds

—

For

—

100%

acquisition

of

of

the

principal
Terminal

Tower Building,
fleid &
6

Cleveland, Ohio. Underwriter—Fulton
Co., Cleveland, Ohio.

Texfel

Petroleum

Corp.

tVfarch 19 filed 550,000 shares of common stock
(par $1).
L'rice—To be supplied by amendment.
Proceeds—For
repayment of the company's 5% notes held by an Amer¬
ican

;

bank, and the balance will be added to its general

(funds and will be used in connection with

its various

operations, and for general corporate purposes, includ¬
ing payment of purchase obligations on certain prop¬
erties, and for the purchase of warehouse inventories.
Office—Republic National Bank Bldg., Dallas, Texas
Underwriters—Bache

&

Co.

and

Allen

&

Co., both of
Offering indefinitely postponed.
Thriftimart, Inc. (6/17)
May 18 filed $8,000,000 of convertible subordinated de¬

New York.
O

bentures due 1980. Price—To be
supplied by amendment.
■Proceeds
For expansion program. Office —
1489 W

Halsey, Stuart & Co. Inc.; White, Weld
& Co.; Merrill Lynch, Pierce, Fenner & Smith and East¬
man Dillon, Union Securities & Co.
(jointly); The First
Boston Corp.; Kuhn, Loeb & Co. and Blyth &
Co., Inc.
(jointly); Kidder, Peabody & Co.; Drcxel & Co. and
Eastman Dillon, Union Securities & Co.
Bids—Expected
to be received up to 11 a.m. (EDT) on June 16 at 1401
Arch St., Philadelphia 5, Pa. •
United

•

for

all of New York.

of bank loans incurred in connection with such
program.
Underwriter—To be determined by competitive bidding.

May 7 filed 350,501 shares of common: stock (no par) be¬
ing offered for subscription by common stockholders on
the basis of

•

Co., Los Angeles, Calif.

Underwriters—

Lester, Ryons &

—

For

stock, $10

per

share; for bonds, at

300% of principal amount. Proceeds—To retire
the pres¬




new

share for each eight

thje payment of current bank loans incurred in
tion with this

connec¬

Underwriter—None.

program.

United States Glass A-Chemical Corn.
Nov. 26 filed 708,750 outstandingrshares of common stock.
Price—At market. Proceeds—- To selling stockholderi.

Office—Tiffin, Ohio. Underwriter—None.
United Tourist Enterprises, Inc.

(par 50 cents).
Price—$2 per share.
Proceeds—For
development and construction of a "Western Village"
add for construction of

a

Grand Estes Hotel and Con¬

vention

Hall, to be constructed in the immediate vicinity
Chalet, located in Larimer County, Colo,
Office
330 South 39th Street, Boulder, Colo. Under¬
writer—Mid-West Securities Corp.,
Littleton, Colo.
of Estes Park
—

Uranium Corp. of America, Portland, Ora.
April 30,1957 filed 1,250,000 shares of common stock (pai
16 cents).
Price—To be sunolied by amendment (ex¬

pected to be $1

per

share).

Underwriter—To

purposes.

Graham

Albert

Griswold

Proceeds—For exploration
named by amendment.
Portland, Ore., is Prei-

be

of

tdent.

Utah Concrete Pipe Co.

April 27 (letter of notification) 41,300 shares of common
stock (par $1). Price—$7.25 per share. Proceeds—To be
used to reduce long-term debt; improvement and
expan¬
sion of Ogden plant and for addition to

working capital.

Office—379-17th St., Ogden, Utah. Underwriter—Schwabacher & Co., San Francisco, Calif.
Utah Minerals Co.

April 11
mon

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Proceed!

mining

Utah.

expenses. Office—305 Main St., Park City,
Underwriter—Walter Sondrup & Co., Salt Lak«

Utah Oil Co. of New

York, Inc.
(letter of notification) 300,000 shares of capital
At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N, Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y...
-

May 6
stock.

Price

—

_

:

personal properties operated under lease

'Wade Drug Corp., Shreveport, La.■»'
April 28 filed 157,250 shares of class B common stock
to be sold privately to retail druggists through*James D.

Wade, Jr., company's principal officer and stockholder,
•*-

a commission of $1.50 per share. Price
($10 per share). Proceeds—To purchase addi¬
tional machinery and equipment; research and experi¬
mentation; for initial contracts; and purchase of addi¬
tional companies.
Underwriter—None.

who will receive
—At par

Walter (Jim) Corp. (6/16)•• /•';:-*/
.
\
May 19 filed 150,000 shares of common stock (par 16%
cents) together with $1,250,000 of 9% subordinated un¬
secured bonds, due Dec. 31, 2000. Price—To be supplied
by amendment. Proceeds—For general corporate pur¬
poses. Office—1500 North Dale Mabry Highway, Tampa,
.

Underwriter—Alex. Brown &

Sons, Baltimore, Md.

^Washington Land Developers, Inc.
June
Price

3
—

filed

$5

100,000

oer

Office—1507 M

share.

shares

class

of

Proceeds

—

A

common

stock.

For working capital.

Street, N. W. Washington, D. C.

writer—None.

Under¬
i

•

Wellington Electronics, Inc. (6/22)
May 6 filed 240,000 shares of common stock

(par 75
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.
cents.

Wells Industries Corp.
May 14 (letter of notification) 66,600 shares of common
stock (par 50 cents) to be offered for subscription by
stockholders on the basis of one new share for each five

shares held. Price—$3 per

share. Proceeds—To develop
place lightweight gasoline driven golf carts and
for working capital. Office — 6880 Troost Blvd., North
two

Holly wood, Calif. Underwriter—None.
Wesco

Financial Corp.

(6/24)
outstanding shares of common stock.
Price—To be supplied by amendment. Proceeds — To
selling stockholders. Business—Savings and loan holding
company. Office—315 East Colorado St., Pasadena, Calif.
Underwriters—Goldman, Sachs & Co., New York; and
William Blair & Co., Chicago, 111.
June 1 filed 387,300

stock.

—For

certain real and

t,'

by Pioneer.

Fla.

Jan. 28 filed 4,500,000 shares of class A common stock

City, Utah.

c
Tip Top Products Co.
May 29 filed $850,000 of 6% first mortgage sinking fund
bonds, series A (with warrants for 17,000 shares of class
A common
stock), and 100,000 shares of class A common

ctock. Price

one

shares held
of record May 26, 1959; rights to expire on June 18.
Price—$26.50 per share. Proceeds—To finance in part
the company's 1960-1961 construction program,
including

—

Washington Blvd., Los Angeles, Calif.
Reynolds & Co., Inc., New York; and

Illuminating Co. off New Haven

<

Vulcan Materials Co., Mountain Brook, Ala.
May 7 filed 252,526 shares of common stock, of which
142,526 shares represent the balance of 256,000: shares
issuable upon the exercise of options granted; key em¬
ployees under the company's Employees Stock Option
Plan. The remaining 110,000 shares are ta be issued to
stockholders of Greystone Granite Quarries, Inc., and
Pioneer Quarries Co., both North Carolina corporations,
and to certain other parties in exchange for all the out¬
standing capital stock of Greystoae. and. Pioneer and

West End Bowl-A-Drome,

Inc.

(letter of notification) preferred stock. Price—
($100 per share). Proceeds—For purchase of land;
payment on construction of building and payment on
purchase of equipment. Office — Oneida St., Oneonta,

May 26
At par

N. Y. Underwriter—None.

\

'

:i!•&«■

wb' '

Volume

189

Number 5854 ;

;v

The Commercial and Financial Chronicle

(2665)
• Weslcrn

45

of capital stock on the basis of one new share for each
.ding. Probable bidders: HaIsey, Stuart &-6o. Inc.; White. "
to be of-.'/ eight Shares held. Price—$32 per share, payable in 10 ^ Weld &
Co.; Kidder, Peabody & Co.; Salomon Bros. &
feredforsubs^ription by. stockholders of record June 17,
™Sthiy installments from ^Jidy :P0 1959 to April 8, t/mtzler and Meirm. Lynch, Pierce, Fenner & Smith hwST •
1959; at^he 'rate of orie new share for each three common,
1960.. Subscription Agent—Royal Trust Co.,-Montreal, - (jointly); Lehman Brothers and
Blair & Co., Inc.1 (joints,
and one new share for each five shares of preferred stock
Canada*! '
•
ly. Bids—Expected to be received on July 14.
; ••v
held on thai date; Rights expire on July 15. Price—$17.50
^Benson Manufacturing Co., Kansas City, Mo.
:: Kansas City Tower &
perisharerProeeeds—Together; with other funds, will be
Light-XX'r
June 10 it was announced that the
company contem¬
Dec. 29 it was reported that the
applied to the repayment of borrowings for construction
company plans to issue,
plates an_ offering of $4,500,000 of common stock.
Pro¬
and/orfor additional construction in 1959. Office—15900
.
..
and sell $20,000,000 of first mortgage bonds./Proceeds—•
ceeds
For expansion program and additional
working .;J(or construction program. Underwriter—To be deter-'
San Jose-Los Gatos Road, Los Gatos, Calif. Underwriter
R„e,n«c_Th0
capital. Business—The company is engaged in the manu¬
mined by competitive
♦—None, v''X'-X'1/X
bidding. Probable bidders: Halsey, .
'/
facture of aircraft and missile
parts, aluminum containers
Stuart & Co. Inc.; The First Boston
Corp. and Blyth Art
and beer barrels, aluminum curtain wall
Western Wood Fiber Co.
,/
Xy *,
sections for the
Co., Inc. (jointly); Equitable Securities Corp.;
White,j
March 5 tiled 400,000 shares of common stock ^par $10)
building industry and other proprietary products. Un¬
Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb &
and 40,000 shares of preferred stock (par $25).-Price —
derwriter— S. D. Fuller &
Co., New York."/ ;/ X\y/X';, Co., Salomon Bros. & Hutzler and
Eastman, Dillon, Union
At par.»Proceeds—For construction and equipment of
•
Securities & Co. (jointly); Lehman Brothers and
Big Apple Supermarkets, Inc.
Bear.:;
company's plant and for working capital. Office—300
June 2 it was announced that the
Stearns & Co. (jointly).
company plans the
■}
Montgomery St., Sail Francisco, Calif. Underwriter—
issuance of 425,000 shares of common stock. Proceeds—
Leeds Travelwear Corp.
None.^X»™<--—X/XX; To be used for expansion program and working capital.
May 19 it was announced that company plans some ad-r
Underwriter
Simmons & Co., New York. Offering—
White-Rogers Co.
\
'
ditional common stock
financing. Underwriter—AuchinExpected sometime during July.
*
May 28 filed $1,000,000 of convertible subordinated de¬
closs, Parker & Redpath, Washington, D. C. and New
• British
bentures due July 1, 1979. Price — To be supplied by
Industries Corp.
York,
exxxt, y-' V;VX-^
amendment. Proceeds—To pay for part of the cost of
May 12 it was announced sale of 75,000 shares of com¬
Newark Electric Co. of Chicago
mon stock is
w
constructing and equipping a new building in Affton,
planned, of which half will be offered for
June 2 it was reported that
the account of the
Mo. Office—1209 Cass Ave., St. Louis, Mo. Underwriters
company plans some f inane*#
company, and the remainder for the
ing. Business—Distributor of electronic
account of a selling stockholder.
.—Scherck, Richter Co., and Semple, Jacobs & Co., Inc.,
parts. Offering—.
Underwriter—Emanuel,
Expected in August or September.. :
both of St. Louis, Mo.
X
Deetjen & Co., New York. Registration—Expected on
1
Xy:;Xyr

Gilrforitii

Telephone .Co.

June 1-filed. 44,729-shares

•

f;/{,

of common stock,

_

.

-

„

,

,

,

.

.

—

May 4 it was reported that the company is seeking
early ICC approval for the issuance of 250,000 shares of

•

class A

-

stock.

Underwriter—Cruttenden, PodesCo., Chicago, 111. Offering—Expected towards the
'

i

June 1 it

Chicago Burlington & Quincy RR.

Probable bidders:
Salomon Bros. & Hutzler.

Halsey,

of

&

Co.

210,000

1

1

»

capital and surplus.
Co., Inc., Los Angeles, Calif.

^

Underwriter—Blyth &

/XXXxVXX/--

debentures.

Consolidated

May

Underwriter—City Securities
V; v/ : /'

Corp.,

James

19,

Proceeds—For

Natural

Gas Co.

Comerford, President,

announced

that

investments, improvements, etc.

Under¬

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley
& Co. and The First Boston Corp.
(jointly); White,
& Co. and Paine,
Webber, Jackson & Curtis

Weld

(jointly).

•

Gilbert Properties

(7/13-17)
May 15 it was announced that this company plans an
offering of $4,506,500 of convertible debentures, together
undetermined

an

number

of

shares

of

common

it Extrudo-Film Co.

/

announced that the company contemplates
30,000 shares of preferred stock (par

Proceeds — To pay construction costs. Under¬
writers—May be White, Weld & Co., New York; and
Sterne, Agee & Leach, Birmingham, Ala.
Offering—
Expected late August or early September.

it Baird-Atomic, Inc.
an

templated equity financing.
Bank of

two-for-one split of
increase in the company's
a

a con¬

,

Commerce, Washington, D. C.

Feb. 26 stockholders of the Bank approved the sale of
2,000 shares of capital stock (par $100) to holders of
record IVfey 29, 1959, on the basis of one new share for
each three shares held; rights to expire on June 30.
Price—$150 per share. Proceeds—To increase capital
and surplus.

Bank of Montreal

May 1, it

was reported that this company, which is pri¬
vately owned, plans public offering of 175,000 shares of
common
stock.
Business—The company manufactures
polyethylene film. Office—36-35 36th Street, Long Island
City, N. Y. Underwriter—Maltz Greenwald & Co., New
York. Offering—Expected sometime this Summer.

Georgia Power Co.

of

and

was announced

Dec. 10 it

'

was

(9/17)

announced that the company

plans to issue
$18,000,000 of 30-year first mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth &*Co., Inc., Kidder, Pea¬
body & Co. and Shields & Co. (jointly); Lehman Broth¬
ers; The First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
and sell

Registration—Planned for Aug.
on Sept. 17.

10.

Bids—Expected to

be received
•

Hoffman

June

2

it

Laboratories,

was

reported

Regulation "A" filing plans
of

common

stock.

Price

Inc.,

that
an

N. J.
through a
offering of 50,000 shares

the

Hillside,

company

$6 per share. Underwriter—
Myron A. Lomasney & Co., New York. Registration—
Expected June 11-12.
—

Jersey Central Power & Light Co.

Bank is

offering to its stock¬
holders of record April 17, 1959 the right to subscribe
on or before July
10, 1959 for 675,000 additional shares




El Paso Natural Gas Co.

June 8 it

Carp.

stock

these

equipment, etc. Under-,
May be Lehman Brothers and Hornblower &

Weeks, both of New York.

sale

'

was

of
—

/•■"

.,

Pennsylvania Electric Co.
Feb. 10'it

,

securi¬

(8/4)

announced

that the company is
planning
$15,000,000 of first mortgage bonds.
TJn-»

To be determined by competitive
bidding..

Probable bidders: Halsey^ Stuart & Co. Inc.; Equitabli
TTirlr?<vr

SPfMiririPC fVrrn
Securities

Jf.
Corp.; Kidder, Po'iVindiT & On Eastman Dillon,
Peabody
Co.;
Co., Merrill Lnych, Pierce, Femier«
White, Weld & Co. (jointly);The First,
Boston Corp.; Harriman
Ripley & Co. Inc. and Blyth &,
Co., Inc. (jointly). Bids—Expected to be received on,
Aug. 4.
;
///
•

•

Union Securities &
& Smith Inc. and

,vX<

$13,25U,000 from outsidd4

This

new

money

will

come

partially from short-

determined.

yet been'

Proceeds—-To, meet construction require¬

ments for 1959.

"

,

Puget Sound

Power

&

,

.

,

.

...

,

Light Co.

j

May 15, Frank McLaughlin/President, announced

*

i

J

com¬

plans to issue and sell first mortgage bonds
late*
year. Underwriter—To be determined
by com¬
petitive bidding. Probable bidders: Halsey, Stuart &

pany

in

the

Con¬
ine. and Lehman Brothers
(jointly); Merrill Lynch,
Pierce, Fenner & Smith, Inc.; Stone & Webster Securities
Corp.; The First Boston Corp. and Smith, Barney & Co.
(jointly).
*
> v
Southern Pacific Co.
(6/24)
Bids will be received by the company on
the purchase from it of

June 24 for

$6,000,000 of 15-year equipment
trust certificates maturing
annually from June 1, I960,
to 1974. Underwriter—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;,
Salomon Bros. & Hutzler.

,

—

$100).

common

Co., New York. Registration expected momentarily.

Stockholders voted April 28 to increase the authorized
preferred stock to 1,000,000 shares from 472,229 shares,
and the common stock to 25,300,000 shares from
20,300,000 shares. Proceeds
For major expansion program.
Underwriter—White, Weld & Co., New York.

early Sep¬

authorized shares to provide additional shares for

—

for

term obligations but
principally from permanent filianc-1
ing, the amount and type of which has not as.

company plans later in year to issue and sell $20,000,000
of debenture bonds, if market conditions are favorable.

Corp.
May 21 it was announced that the company plans to
issue $4,000,000 of first mortgage bonds.
Proceeds—To
pay construction costs. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; White, Weld & Co., Stone & Webster
Securities Corp. and Kidder, Peabody & Co. (jointly);
Salomon Bros. & Hutzler and Equitable Securities Corp.

the

/ *

sources.

.

June 19 stockholders will consider

J

.

fund

Alabama Gas

was

^

.

,

/Indianapolis, Ind. ///■ 'i_V

ive

issuance

X

June 8 it was reported that this
company plans to issue
and sell to residents of Indiana
only, $800,000 of sinking

&

May 21 it

>

Airways, Inc."

.

stock, to be offered in units. Underwriter—S. D. Fuller

the

;

*

Public Service Co. of New
Hampshire
April 22 it was stated in the company's annual
report
that it plans the raising of

with

Gas

writers

derwriter

.

^Consolidated Finance Corp.

writer—None.

Alabama

Co., Los Angeles, Calif,;
Co., Inc.,;New York. Registration—Expected:

Pan American World

the

.

To increase

scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered initially to share¬
holders of reeord Nov. 1, 1958, in the ratio of one new
share for each 2.33 shares held on that date. Price—$4
per share. Proceeds—$300,000 will be used for payments
on contract to purchase shares of International Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬
ance company; $500,000 for capitalization of a title insur¬
ance company; $500,000 for additional capital contribu¬
tion to <xreat Plains Development Co.; and $300,000 as
an additional capital contribution to Great Plains Mort¬
gage <!o. Office—319 E. "A" St., Casper, Wyo. Under¬

or

William R. Staats &

have pre-emptive rights to subscribe
ties. Proceeds—For purchase of

Inc.;

announced that the bank plans an offering
additional shares of common stock (par $10)
,!I.

-1

.)

.

May 26: authorized the company to .offer up ta.
$50,000,000 of convertible debentures.
Stockholders would

*

to its stockholders of record June 30, 1959, on the basis
of one new share for five shares then held (after a
50%
stock dividend); rights to expire on Aug, 3. Proceeds—

Wyoming Corp. '

V

•

was
_

Nov. 17 filed 1,449,307 shares of common stock. Of these
shares 1,199,307 are subject to partially completed sub¬

'"■/

—

about June 15.

• Citizens National Bank, Los Angeles, Calif.
June 9 it

subsidiary, lor equipment and working capital; also for
working capital of parent and molds and dies for new
accessories. Business—To design and sell marine prod¬
ucts and~boating accessories. Office—441 Lexington Ave.,
New York,N. Y. Underwriter—B. Fennekohl & Co., New
York, -N. Y.«
■;

.

writers

(6/18)

Stuart

i:;

was

and Blyth &

Bids will be received by the
company on June 18 for the
purchase from it of $7,200,000 of equipment trust certif¬

icates.

y

(7/7)

reported that company is planning to sell'
$10,000,000 subordinated convertible debentures. Underf^*

Offering—Expected sometime this Fall. Under¬
be determined
by competitive bidding;
Probable bidders: Blyth &
Co., Inc. and Harriman Rip¬
ley & Co., Inc. (jointly); Lehman Brothers and Lazard
Freres & Co.
(jointly); The First Boston Corp. and
Merrill Lynch/Pierce, Fenner &
Smith, Inc., jointly. '

(6/22-26)

(jointly). Offering—Expected late August

★ Northrop Corporation

writers— To

stock

tember.

Underwriter-^-^

Co., New York.

stock.

debentures

common

common

June

v

Central & Southwest Corp.
May 19 it was announced that the company in view of
generally* favorable market conditions, is now consider¬
ing the sale of 350,000 or 400,000 shares of common

;

due May 15, 1964 and 15,000
(par 25 cents) to be offered in
units of $500 of debentures and 50 shares of stock. Price
/—$500 per unit. / Proceeds—For advances to Nautilus, a

Shares of

&

end of June.

May 8 (letter of notification) $150,000 of 7% convertible
subordinated

Simmons &

ta

,

Worthington Products, Inc.

North Hills Electric Co.
(7/15)
v ;
/
t 2 it was announced that
the company plans the,
issuance of
300,000 shares of common stock. Price—$1.
per share. Office—Mineola, New York.

Buckingham Transportation, Inc.

Worcester Gas Light Co. (6/18)
May 8 filed $5,000,000 of first mortgage sinking fund
bonds, series C, due June 1, 1979. Proceeds—To be ap¬
plied to the cost of the company's construction program,
including $4,350,000 of advances for construction pur¬
poses-by Worcester's parent, New England Gas & Elec¬
tric Association. 'Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blair & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Coffin & Burr, Inc. and
Estabrook & Co. (jointly). Bids—To be received up to
11:30 a.m. .(EDT) on June 18 at 10 Temple St., Cam¬
bridge, Mass. :
/y'VX;:
.

about June 22.

or

• Will
Ross, Inc. (6/11)
May 13 filed 88,512 shares of common stock (par $2.50).
Price—To be supplied by amendment.
Proceeds—To
selling stockholders. Office—4285 North Port Washing¬
ton Road, Milwaukee, Wis. Business—A domestic dis¬
tributor of hospital supplies, equipment and furnishings.
Underwriter—Blunt Ellis & Simmons, Chicago, 111.

(7/14)
was announced that the company is contem¬
plating the sale of $8,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bidFeb. 10 it

Speedry Chemical Products Co. Inc.
May 15 it was announced that the company plans an
offering of 208,666 shares of common stock. Underwriter
—S.

D.

Fuller

&

during the second

Co., New York.
or

Offering—Expected

third week in July.

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¬
mon
stock later this year through rights to common

stockholders. Proceeds—For expansion program. Under¬
writer—May be determined by competitive bidding.
Probable bidders: Lehman Brothers;
White, Weld & Co*
and Shields & Co. (jointly); Merrill
Lynch, Pierce, Fen¬
ner &
Smith, Inc. Offering—Expected toward the end
of the second or third

quarter of 1959.

ic Union Lightf Heat & Power Co. (7/9)
June 9 it was reported that this Cincinnati Gas & Elec¬
tric Co. subsidiary plans to offer and sell
$6,000,000 of
first mortgage 30-year bonds.
Proceeds—For construct
tion program. Underwriter—To be determined
by com-*
petitive bidding. Probable bidders: Halsey Stuart & Co.
Inc.; White, Weld & Co.; Equitable Securities Corp.; Sal4
onion

Bros. &

Hutton & Co.
up

to 11

a.m.

Hutzler; Morgan Stanley & Co. and W. E<
(jointly). Bids—Expected to be received
(EDT) on July 9.
*•

Wayne Manufacturing Co., Los Angeles, Calif,
t
May 26 it was reported that this company plans a sec¬
ondary offering of about 90,000 shares of common stock*
Proceeds—To selling stockholders. Underwriters—Mitchum, Jones & Temple ton, Los Angeles, Calif.; and
Schwabacher & Co., San Francisco, Calif.

46

The Commercial and Financial Chronicle

(2666)

Corp.

With Hall & Hall
FBESNO,

Calif.

is

Robinson

now

—

with

Hall, Bank of America

Whitehall

and

that total

announces

Price

W.

Hall

five

first

Mutual Funds

and

Building.

months

$23,242,000,

Fund,

Inc.,

.

sales'/for the
amounted

.

to

Is Inflation
Just the

Ojther day, in

an

Necessary?

cal

j Incorporated j
I

Investors

Jj

ESTABLISH CO 1925

|

A mutual fund investing in a

|

list of securities selected for

,|

possible long-term growth of

j

capital and income.

I
|
{
|
|
|

—I

i

| Incorporated J
I

Income Fund

|

i

A mutual fund

a

I

J

list

of securities for current

*

J income.
^
«

I

investing in

?

^

A prospectus on each

1
*

.youf investment dealer,

^

The Parker Corporation

I

Boston, Mass.

200

Berkeley Street

increase from

Series funds rose-30%
;

•/,■>; /

/••First

ended April

30,

Axe touched

/

f

; *

*

,'.;V

*

Securities

Mutual

of

he

j
*

I

added, "the variable annuity is

Nucleonics/Chemistry and
Electronics Shares, Inc., has an¬
tor for

•'''''.

'^r'. •"'*

a

total of

''/J

-•fjt

The Dominick Fund,Inc.
A diversified closed-end //;

Investment

On June 8,

stockholders of record June 30,
1959.
.

■

During
the / twelve / months
The demand for business loans has n
ended
increased and instalment loans have expanded. Member bank real':
May
31,
Niagara Share
estate loans are 12% higher than the 1956 peak. Efforts to prevent ;
Corp. brought its net assets up'
credit overexpansion are being partly offset by various govern- v., from
$45,443,228, - or
$25.21
a
ment schemes for making low-cost loans available for various ; share, to $63,342,975, or $35.14 a
share. The calculations are based
purposes considered worthy. . . . Member bank reserve require¬
on
the same number of capital
ments may be reduced but this would probably be inflationary ,
shares at the end of each period.
although it might ease the money market temporarily." V
",V
/'•/
•
}j{ '
;f; ,.•«/
"
'■ '* '/ •
Although it is difficult to believe that the inflationary trend
can be halted overnight by scattered warnings from government:
The Colonial Fund, Inc., includ¬
officials, some fund executives believe that the hue and cry is at
ing $3,800,000 in assets of ; the
last making an impression on the consumer, that faceless and unaf¬
Bond Investment Trust of Ameri¬
filiated little man who needs most to be convinced,. This may well
ca, registered an all time high of
have been borne out by the broad, grass-roots drive into common- *
nearly $76,000,000 in assets as of
stocks that has occurred over the past year and the adverse":
last April 30. Net assets per share
position in which bonds and other fixed-income investments have
rose
11% to $11.00 in the latest
been assigned.
'
six months. A notable portfolio
"It is encouraging to note," says Hugh Bullock, President of
addition during the latest quarter
Dividend Shares, Inc., "that not only are the Administration and
was
12,000 shares of James Talthe Congress aware of the inflationary problem, but .that the man
eott, Inc.
■' -^ ;/•//■ '/;/.;/ >£>'■■//
in the street also realizes its significance. As the experience of
West Germany shows, prosperity can be gained, without inflation.
The One William Street Fund,
Although certain common stocks provide one of the best available
Inc., celebrating the first anni¬
safeguards; against inflation, common stocks can show sound
versary of the continuous- sale of
growth in an economy characterized by stable prices."
;
• its shares
through William Street
The lessons that may be learned from the West German econ¬
Sales, Inc., has announced that
omy are not, of course, entirely applicable.
For one thing, there
total net assets at May 31 were
has not been such a sustained and often irresponsible demand
$290,374,147, equal to $1-3.72 per;
for higher wages in West Germany as in the U. S.
Nevertheless,
share. One year ago, assets totaled
it is probably comforting to nearly everybody on Wall Street ,,
$221,216,128, equal to $11.56 per
to know that there is at least one country in the world where the;/,
share.
The
fund, sponsored by*
flush of prosperity can be attained without running the national
Lehman
Brothers,
108-year-old
currency through a wringer.
investment
banking
firm,
first
filed its registration statement on
and its net assets per share by April 7 ,1958 for a public offering
39% to 8.12 over the 12 months of 3,000,000 shares. This was in¬
first
to
ended April 30. Shareholders in¬ creased
7,000,000
and
creased from 16,500 to 19,900 and finally to. 16,000,000 shares—the
shares outstanding from 6,653,147 largest initial underwriting in the
Keystone
Growth
Common
to 8,247,832 during the same pe¬ history
of the investment-com¬
Stock Fund, Series S-3, boosted its
riod.
pany business.
net asset value per share by 46%
«tt
When One William Street Fund
to $15.28 in the 12 months through
Axe-Templeton
Growth Fund began
its
sales
operations,
it
April 30. There was a 17% in¬ of
Canada, Ltd., reporting for the ranked eleventh in Size among the
crease in net assets per share dur¬
fiscal year ended April 30, cal¬ 144 member units of the National
ing the last six months. As a re¬ culates its
net assets at $4;270,581, Association of Investment
Compa¬
sult of these gains, the fund ended
or $30.37 a
share, up from $2,928,- nies.
Currently
there
are
156
the period with totat net assets of
841, or $20.62 a share, the previ¬ open-end .companies which are
$50,992,812 and now ranks fourth ous
April 30. Figured in U. S. members of the association, and
in size among the 11-fund Key¬
dollars, net assets were $31.56 a One William Street is. the ninth
stone group.
share, up from $21.27 a share. The largest among the group.
The most significant shift in the
number of shares decreased from
Dorgey Richardson, President of
.fund's holdings during the past
142,064 to 140.623 during the year. the fund, reports that One William
six months involved the elimina¬

THE

Established 1894
STREET, NEW YORK 5

44 Wall

share

per
-

*v

-

/•

Board of Directors today

The

deel ared

/: -

' of the

a

.

dividend of

on

Fund

cents /•
the Capital Stock
f

payable July 15/ *

1959, to stockholders of record

,.

June
>. / is

15,

The dividend;

1959,

payable from net investment.

income.

/'"/•/'.:

-

//;■

R.S.Troubh

;

'

/'

-P

'.•■

June

8,1959.

" ' Treasurer

■.•■ ■■■

-;>'•

-

/[.

'
j;

■

__

A

Diversified Closed-End
Investment

Report

Addreps

St., New York 5, N. Y.

Dividend Notice
-

The Mutual Funds

Nome

-

Lazard Fund, i>c.

t;

„

ONE WALL

/

Vice President and Secretary

i

,

.

CALVIN BULLOCK

■/

/•

uncertainty.

S. STOUT-

JOSEPH

•

1

...

—A IT. S. Incorporated mutual fund protiding diversified, managed investment in
Canada. For free prospectus mail this ad to

dividend of

a

declared on
t he capital stock of the Corpora¬
tion, payable July 15, 1959 to

'liv ft

tH

1959

12c per share was

28,000 shareowners.

.''(■■'•'i

Company|

Dividend No. 140 >■/%"//:'

/

The three funds

tives in 23 states.

have

ments of the economy and pronounced them either quite strong or
at least improved. "The domestic money market," Axe then noted,
"is the principal

concern¬

ing variable annuities, since the
plan operates under the SEC reg¬
ulations, as well as the State reg¬
ulatory authorities.
"After all,"

America, Inc., principal distribu¬

several important seg-*

on

Fund,

Fidelity Bankers

of

Supreme Court decision

to

nounced plans to acquire ; three
combating dollar erosion by unburdening themselves of their :;:
established
mutual funds.
They
thoughts on the matter in letters to shareholders. They have not
are Corporate Leaders Trust Fund
always been statements of optimism.
Observed one fundman,
($44,500,000 assets), Lexington
President Philip L. Carret of Pioneer Fund, Inc.: "For 20 years, from
Trust Fund ($6,500,000 assets) and
1933 to 1953, the investing public viewed with almost complete
Lexington Venture Fund ($3,760,indifference determined efforts to achieve inflation.
After six
000 assets).
The deal will be ac¬
years of at least modest efforts to combat inflation, most investors
complished through purchase of
apparently accept the thesis that prices can move only in an •
91% of Renyx, Field & Co., cur¬
upward direction."
rent sponsor of the funds. Renyx,
A znore temperate view is that of Emerson W. Axe, President
Field has 400 retail representa¬
of Axe-Ifoughton Fund B, Inc. In his semi-annual report for the

period

mutual fund

Stock

$6,800,a 51% // His company, he pointed out, is
concerned
with
the
the May, 1958, level. not
recent

Five-month sales for National Se¬

$38,946,269.

a

Variable

and is registered
with 'the
Securities and Exchange Commis¬
sion." f
;///y"_'/;' /■ - . , ■
- /

his group posted a record
059 in sales during May,

curities

benefits, proof retire¬

time

Life

'

fund is available from

J
I

Association, President Eisenhower advised that doctors could
in the prevention of further depression of the dollar by,
holding their fees to a reasonable level. While this made a rather
unusual peace of news, it is most noteworthy insofar as it indi- '
cates how far afield the President is taking his crusade against
inflation. Just how successful this campaign may be is anybody's;;,
guess.
Recent history does not offer much by way of real en¬
couragement that it will be.
' v
•;'
Mutual fund executives have lately been doing their part in
assist

at

Inc.) which was-established under

President of the National jSecuri-

address before the American Medi- /

death

income

the "auspices

tie$ Series of funds, disclosed that

FREE ON REQUEST

regular

vides

(Fidelity

Meanwhile, E. Wain Hare, ViceBy ROBERT R. RICH

Thursday, June 11, 1959

.

ment and shares in

compared id $7,849,period df 1958.

000 for the like

EITHER PROSPECTUS

the

.

.

Company

Second Quarter Dividends'
Record Date June 19,9959

.

,

,

A BALANCED
FUND

investing in
bonds and preferred stocks
selected for conservation of

principal and current in¬
come

and in common stocks

selected

for

income

and

.

securities

and

build-up in airKeystone
disposed of 21,000 shares of
Boeing and 12,000 shares of United
Aircraft.
At the same time, the
fund
increased
its holdings in
American Airlines by 12,000
S-3

An Equity
Fund,

investing pri¬
common stocks

selected for possible

longterm growth of
capital and
future income.
Ask pour investment dealer for

The

Wellington Company
Philadelphia 3, Pa.
CP

one

Wellington Fund
O Wellington Equity Fund

O

NAME

made

and

new

additions

of

20,000 Eastern Air Lines and
16,100 United Air Lines.
Other
new
additions were diversified,

■

ADDRESS
CITY




nounced

an¬

gain in net assets from
or $10.68 a share, to
or $12.50 a share, dur¬
ing the year ended April 30. Capi¬
tal shares grew from 515,628 to
521,871 over the same period. The
a

$5,509,338,

had

vestment

23,491

and

ment
plans
May 31. *

continuous

dividend

in

had

$11.74
Shares

.

assets

share,

a

at

of

on

that

$6,142,919,
Oct 31,

time

operation

or

523,321.
*

v

Payable July 1,1959

67'/2 cents

a

share

pn

the

$2.70 FREfERRED STOCK
..

65

;

•••:•' '

Payable July 1,1959 *'

;
- -

Broadway,. New York 6, N. Y..
_Li±.

in¬

as

of

A MUTUAL

INVESTMENT

Plan Based

Variable

1958.

numbered

/

reinvest¬

$6,525,830,

fund

share

the COMMON STOCK

oq
"

a

oil

New

FUND

Annuity

Concept Presented

$

*

predominantly
electronics,
oils, rubbers and papers.
At the close of Keystone S-3's
April period, the portfolio con¬

A unique variable
-annuity
package, combining equity invest¬
able hikes in sales during the ments and annuity benefits, said
month of May. Gross sales of the to be designed to protect families
Broad
Street Group of mutual against the hazards of inflation as-

WRITE FOR

sisted

funds hit

FREE INFORMATION

but

.prospectus or write to

Check

shares

Lexington Trust Fund has

a

transportation equities.

marily in

Street

tion of all aircraft-manufacturing

profit possibilities.

30 cents

in

of

58

individual

securities

18 industries. The largest per-,

in the electric prod¬
(12.9%).
Other large
holdings.were in the steel (8.1%),
oil and gas (7.9%), and paper and
packaging (7.5%)* fields.
*I
*t
*
centage

was

ucts, field

Puritan Fund, Inc. extended its
net

assets

by 84%

Two

funds

have

reported

siz¬

$5,137,000 in that month,

figure 230% greater than that of
corresponding month pf 1958
a
sharp increase from the
$4,874,000
tally
of
last
April.
a

the

and

President

weU

deflation and against eco¬
nomic
loss
resulting * from the
death of the family breadwinner,
was

as

distributor

to $66,998,088 vesting

for

Co.,

Fox-Martin

Broad

National

Street

of

In¬

Investors

by T. Coleman
President and Board

Mr. Andrews said the package
includes ah ordinary life insur¬
ance

FOLDER AND PROSPECTUS TO
YOUR INVESTMENT DEAUR OR

-

[

announced

Andrews,

Chairman of Fidelity

Bank&r&Life
Insurance Corp. of Richmond, Va.
Broad Street Sales Corp., national
Milton

"

policy which, in addition to

NATIONAL SECDRITIES&

RESEARCH CORPORATION
Established 1930

T20

~

Broadway Mew York 5, M.

%

Volume

Number

189

5854

.

The Commercial and Financial Chronicle

.

.

(2667)
equity investment and

an

condone its sale

not

1

do

we

a gem en

t organization (Fidelity

an

showing $1.18

insur-; Management ^

^

as

"

Company) is im.,/ . posed.
Mr.
Andrews
admitted; there.
^Our business is life insurance
could
be
noguarantee'..beyond and this'is merely a tool to help
the built-in-insurance valuesHhat^Us serve qur policyholders better,"
policy."

ance

j,

■

«

.

income would1 be
the mutual, funtl

particular

any

derivable

portion

from

This mutual
exclusively in cornmon
stocks : with emphasis on
growth
potential
as
a ' hedge

investment C and,
it consisted of hold-

since

that,

Mr. ^Andrews. said.

the

of

against

ings in equity securities, the value
of

the

the

downside

upside, since their value

i;.

de-

Boston Edison

serves

the

city of
with! a
total population of 1,444,000. Revenues
are
mainly electric, with
about 4% from steam and miscel-

Boston and adjacent

of
ex-

.

Boston Edison has been
up

.

^

closing

Unit

late

summer

of

a
145,000
4, will be

7

kw

f

struction

duplicate

of

66%-59

5

being 63%
year's range
last year's 60 %-

this

and

48%.

1959,

started

and

con-

DIVIDEND NOTICES

Unit

6,
completion
scheduled
for
When Unit 6 is completed,

with

June

with

compTete'cTin"the

of

has

price

compared

Company4

tion,

_

areas,

holding

better marketwise than many
utility issues recently, the

other

'

Boston Edison

clusivblyv'to policyholders of>Fidelity Bankers Life.
;

welU as^ on

as

Ownership

shares in the fund is offered

fluctuate

could

shares

these

on

inflation.:

at

By OWEN ELY

fund invests

$1.05) at $3.68.

vs.

On that basis the stock is selling
17.3 times earnings.

Public Utility Securities

,

47

on

p.ended. on the- market value
Life Insurance—While pre-- laneous services. Industrial reve- 1961.
the .underlying
investments: vH^ltiiums^may^bd paid monthly;: if
are relatively small at 19%; Mystic Station will have a capawas -i. confident,,
however,thafepa^Vby payroll deduction or pre- -residential :;4s> 36%, commercial bility of 612,000 kw and system
given a?wise, selection and w|^ "authorized check plan, each nur-:V35%i and sales^to other utilities capability will be
1,372,000 kw.
diversifications; these investments Phaser receives the benefit of ah 42%;; Of the industrial revenues
As
a

>

result

a

1

would

of the

**

Unit

new

4

Canada Dry

p e

American

improved
5% in 1958.
Equipment was in¬
stalled at Edgar
Statioii|Eor the
economy

of

purpose

able to employees on ah

iridmdndh which.avoid medical .examination -ra^r and Printing
;
11
and
voluntary .basis and'
,^rid* 'peiiialties .for more/.hazardouS- Rubber
10;
v-Policy, offers*/,the Chemicals
4!
group there Can be set.up ^ pay4 .privilege,
of ^converting mutual^Scientific Instruments-_____
4i'
roli-deductibh'pnieedure.tQ facili^iund.shares io, a fixed annuity at: Shipbuilding
4;
tate-employe'participation::.J, J-.,: :;•*>.».;N's j-M
__—j.i_ __i 19;
plan.
;cV%%
: ^
-Fidelity -Bankers Life, currently ->

when

1

-

natural*-; gas

available

basis.

For

on

eco¬

an

number

a

of

the company has been in a
position to use coal or oil alter¬

years

nately

.

'

is

nomical

.•

'

it

burning

the prices of these fuels

as

fluctuate.

-''*'•••

The following dividends have been
declared by

the Board of Directors:

Preferred Stock—A

regular quarterly
share on

of $1.0625 per

dividend

$4.25 Cumulative Preferred
Stock, payable July 1, 1959 to
stockholders of record at the close
the

of business

June 15, 1959.

on

Stock—A

quarterly divi¬
$0.25 per share on the Com¬
mon Stock, payable July 1, 1959
to stockholders of record at the

Common

dend of

"

ranks

Corporation

DIVIDEND NOTICE

was

-among"'1'

close of business

some

on

June 15, 1959.

Transfer books will riot be closed.

signed as-Security)

attractive from.,
Andrews

said.

: load

cost basis,'V Mr.^ WWW ™
^uranco

a

Some

the

of

section
me

ord
108$

fea-

*in

in

iorce

m—

the
of

business the

-downtown

Boston

exceeded

xi__

„

install

country

scale computer; ;the

the

large-

a

year

1953

was

*

Checks will be mailed.

J. W. Reilly, Vice Pres. & Secy.

i

winter peak for the first time.
devoted to its installation and
h'
While New England has-been training of personnel. A'smaller
(1) Since Fidelity
.Koitetw wS S losing .the:; :'textile;.. and related digital computer has been placed
^organized the fund for tft(?sbepefit;;'iu '<.p.
■tng..oon^: industries Which traditionally' in operation at the System
of its policyholders, 'the mutba%t
: ml|
The-- romhairrtQ 'T
forced .the'iriiadustrial backbone of Despatches' headquarters and the
tures -are:

creased

;.

j

avnt.n

nv

-'

Bank^rs;i;Li-M-^|Jrf.A^.g^

i REGULAR

.,

i QUARTERLY

,

fund

has
•

sales

no

•

•,

load:!
andTj
\.u

commissions are paia

chase of shares:

,

A

no^iife-insurance imDelaware, Flori1--tr":lias gained ground company also operates a network
>AAk
T
;substantially in newer and more analyzer which provides data for

-

o

1! DIVIDEND

«

for^he pu.r-modern

industries. The electronics planning the growth of the transind^xy^(^ered in the Boston mission system,
-area^is the fastest growing bus*In May, 1958, the Massachusetts

olina Smith

quart^rfefee

of V8 of 1% to meet certain of

■

The Board of Directors has

declared this day

costs

COMMON STOCK DIVIDEND NO. 100

This is

necessarily
.»,

also

are

contributing in

substan-, sisting mainly of net plant investthat industry
e in the mar- i tiat -vvay
improvement of the ment. The company received an
ket
for
substantial amounts;], of economy. Atvthe recent dedication electric ' rate increase of about
debt

of

ance;V

capit# through the balthe
/ : '
.

bf;

:

RGA laboratory,- PresiBurns of -RCA, said: "We

new

a

derit

,,

such/'new securities unless
fell the terms

?

things

shape

"

Once

^'
,

v;

(.

the
ixic

of
ui

*.■

proposals

his

interest

rates

chrmld'hp

thprp

limit

Treasury

on

-

,.

tinrp

Looking

VWWK,,'S

snme

tfie

Field

51.

nf

rtiDOAtfArtf

research itself has

approximate

,

ov>rl

new tronj-

'
Edison

Boston

pany's
~

.

intrnntiAvi"

D..

^

1

42p

share

per

(after taxes).

annum
.

rate
:

i...

«

The

schedules
7
Z
X

_

per

THE COLUMBIA

a

1

a

majdr

expects

The

.

GAS

'

preferred

growth

yield

waim^

oinct?

stock

basis

of

less

than

The Garlock

4.70%.

Over

vver

Sf "a-^uDtuwo

W). vvumhuu

True,

uie couipany

uusa

reiauve-

Packing Company

considerable

still

discussion

lace

aff0rding yield* of 4.25 to 4.30%,

Con-

111

Treasury obli- unfb^s^en,;pointingencies4 Kwn ly high equity ratio (about 43%)
sellingjt prices generally sales-are.expected to increase ovqr no common stock financing ap-

gati0ns

.

probably

we

some- people

that

we

the next five years at an average
rate of about 7% per annum, and

may see

^b!Sindh^^^intrto;**

-4#%-yield basis in" peak ;uoads,; at nearly the samte
*'p"a?t-Pf ii^J^^nyestment field^;^.t6;\tjh^:g^in'.in revenues wouM
nf

situation

thp

ha

mftvpinutnf the

VP

L^r^litv

w-,S>ViY.

i-»,

*Fignring that top-flight corpoconjecturerates» to be in more or less nor-

at

hut

we'

-

he .slightly less,, it is estimated,
'5,119^3?? ■ fpi^; promotional rate^.

Most, people

able action on the

proposqd/tem- ^market observers look for a 5%%
boost in thp JpM limit to "(0 >!/«/
in the debt limit to
basis
f0r
such
51/,% retj
$295 billion as assured. But there issues.~

r.nnrarv

O11- that

the
-I

market

ns
seems

muphi the
mucn tne

that

is

•

lssues

leaving

by

treaSt

"

5%

a

basis

Pr9

-

it

.The upcoming week offera, little^
™

UmrtL°n bZS

forth

Sice

period

-

•

,

giving
that

any

cue,

is

it appears to be
settle at least

things should

the - Monday
calendar
is
heavy,-.but only with "prospects."
Few are likely to materialize at

again

this

the

mm^ketwise ^ I^eli^g ^memg ^ Tuesday shfktes bring
could
Jjeeiing among
q{ 400>000
of

a

is,

however, that

market

stock

fQr

Reichhold

yields

may

-f^»
estimated.

levels.'

Go., and $4.5 million bonds of St.

Buyers
f

the

Command

of

Joseph Light & Power Co.

market
There

in
is

no

high-grade corporate

the

On

course, on

relationship of supply and de-

mand in the

>;

in

Much will depend,

months

ahead,

gain saying the, fact




o^tween

(the exact amount

Thursday,

Light; Co,

z/ ai$,

Boston

Edison

1,082)-

63%

not

and

sold

avail-

is

duetto

look

new

bonds,

writing

another slow period.,

manufactorer

of

share and
share

an extra

dividend of 25 4 per
clared

on

the

were

011

Company, payable June 30, 1959, to
stockholders of record at the close of
business

June 12, 1959.
H. B. Pierce,

Secretary

INTERNATIONAL
SHOE

the

Share

COMPANY
St. Louis

193tD

CONSECUTIVE DIVIDEND
Common Stock

autoiliotive

air

conditioners

(Fbicikinc

color X-ray equipment.

A

quarterly dividend of

per

share payable

on

45f£

July 1,

1959 to stockholders of record
at

the

close

12, 1959,

of

was

business

June

declared by the

■

Board of Directors.

to

Common"Stock of this Corporation ,has been

ROBERT O. MONNIG

declared
•

A

,

over

finis

dividend

t

Gas

Vice-President and Treasurer

••

of

1(1

payable

cents

per

share

June 3((, 1959
holders of record June 15,
on

on

to

the

stock-

1^59.

May 18, 1959

Bert J. Mitchell, Pres.

de¬

stock of the

common

recently

based

^2.80 dividend yields 4.4%.

'

Worcester

banking tenders for its $5 million

of

is

ohlM

»

was

meeting of the Board of Direc¬
held this day, a quarterly divi¬

dend of 25i per

27-37^

underdash and Fkicikar trunk units for passenger cars, Fricikab for
trucks, and"Fhkubus for school!buses and trolley and gasoline city
Ifuses) and producers of AiR-CjoN auto air conditioning servicing
equipment. Wholly-owned subsidiary Reliance Eng. & Mfg. Corj).
hiauufabtures Rkmco hospital and lal>oratory equipment, and devel¬
opment

!

-o

o

a

tors,

FRIGIKAR
Pioneer

bonds of Unitegl Gas Improvement

is

wlttaif ?!fn,ngS ?0UW na.ve. bee" larg.1r

hetween

*I8TH CONSECUTIVE IQUARTERLY DIVIDEND

Inc<f and the following day bids
will be opened for $10 million

that

remaip

At

$3.12 in 1957. Unlike some other
New England companies, Boston
Edison normalizes the tax savings

,

chemicals

ease

more,

much

:$ £$$$£„. "unit 41 hadTaK ^rnings for the 12 months ended
annual heat rate of only 9,683 bi March 31 are estimated (on the
per kwh' Unit 5 at Mystic
basis ot the quarterly statement
DIVIDEND NOTICE

common

little further from current

a

not

10ad

an offering

new

may

mite

rise

,

observers

corporate

was

June 3. 1959

COMMON DIVIDEND No! 332

time.

W1RV maiketxvise.
bihty
some

is

nnop

'^^t/y^pEvifi^ability

-

if the .Treasury market

ai]ic

^n.;.

will

^

*

nrohqhlv

' :

;

duringV themcur?eannt

erally.

But,

probably

last-year, and during 1960-3 will

in

Thin jfarc Again

'•

^

yield levels gen-

quent effect 011

•

company

affected by the recession in the
first half of 1958.
Residential
revenues last year gained nearly
7% commercial 6.7% and indus-

around

timewith .'.ecmse-

to

f

owjVilk j^ieuric ^udb

ar0Und

trading
irauiug.

cuiieni

the

interest, rate free, the tendency
«uW-r*"—'

time

are

culTent

s—

.,

appears,

but

1961)

gnd pubiic Service Electric & Gas

.

same' in
same m

The theory, it

place.

P

--p. dated Edison|.Co. of New York SKSS3
senti->

it

score,

nrcttv
proc>

l«
is

from

C01?fli^t10n. with two 125,000 kw

i.

porary

mfht
ment

The

rjJ
'

;

year.

^ mal relation, with the Government.•Construction expenditures appear trial 4 8%> share earnings, with
^.V-v-.-list; .should average 50 to .60• basisv}S^ase* a ,ailnaXfr^ the help of the mid-year rate inlook upon 'favor--..points higheriin^ yield, these same ratc °f
h
1 ^59-61 (if1.crease, were $3.55 compared with

*:

v

least

likely this

pears

SYSTEM, INC.

sold $25 million
last July on a

company

JSS fh^ in vestmentskies- Wittt^oh^l®
.

^clearing.01 ine

[Wilton C. Bald ridge
Secretary
June 4,1959

com-

contain

;■

August 15,1959

111 of business July 20,1959
|g£

an<^ inventiort; fuel adjustment clause.
become
!

•

v

of the world's greatj-

scientists,Are^opening

market
nidi ivt:t

^

the ^national

and

some

lsboratoiies, in which

Eisenhower'ail^ ^orrowers must sweeten their
Eisenhower
put before the Con-offering in order to

has formally

aoKi

:ih' wiiuiiciiiu
in
comrnand

eludes

'

'

;

on

jig to holders of record at close

.

buyers

appears,

Payable

SM3

up

that President
that President

Nnw
Now

gress

are
ciAur

*.".4-

.

attractive.

are

again, it

'

...

found in the. Greater Boston area rate structure and reduce the
the; most impressive concentration number of schedules from 17 to 12.
anywhere of advanced technolog- As of Nov. 1, steam rates were inical
educational
facilities
anfcl creased by an annual $170,000.
they talents.";;'This concentration in'- The two increases together would

how

aware,-- of

.xqii: that score, naturally are not
gcifng to be rushed into absorbing

PER
SHARE

25d

$2,250,000 effective id June, enabling the company to improve its

^Aird institutional investors, well

f.i

regular quarterly

a

_

new

;;

a

dividend of

•

Juns 2,

1959

The Commercial and Financial Chronicle

48

Thursday, June 11, 1959

.

(2668)

mation about the obligations of

BUSINESS BUZZ

private corporations than
about the obligations

many
we

Washington
>« the Nation's

Government.'

"which

-Corporations
raise
must

gJ

\ g~kf§
A.
MA/

wMA/

XJL §

Capital

Federal

want

the

from

money

publicly disclose to the Se¬

curities

YCT

-

Exchange

their

all

liabilities

spending.

such

-pose,of

Commission »

contingent

and future

.

The

disclosures

C.

D.

WASHINGTON.

that

ings

rates

interest

raise

In

is

to'
risks';

other Government

on

national debt ceiling, v

.

the
from

debt

-

*

tions
";

•'

action

The

White

the

of

Depart¬

House and the Treasury
in

ment

sending separate mes-

made

Byrd

Senator

,

by
some
Democrats
of the Eisenhower Administra¬

students

mild

';

tion.

has

Something

about ; increasing
rate

the

on

,v>;.%• *■<■ ■; <f 1
-VIf
' { .{
'(This column; Li iiitended to rej
fleet the "behind the scene-" inter' ■pretation froffi-the nation's. Capital
\ uttnd nitty orlmay not coincide with
the "Chronicle's" own views.]
• »

;
:
,

lie

■

The only sane solution

enue

at a
loss i

months of the

starting July 1.
Meantime,
the
Government
market is depressed, and
there is nothing to indicate that
the situation is going to
im¬
prove
at the present interest
rates offered on the obligations.

Increasing the interest rate on

savings bonds from 3(4%
to 3.75% per annum when held

the
ins

stepped-up
the

that

at

that the

time
A

average

cost

the

of

;
V
;
Department

soon.

Treasury

spokesman said the fact that the
Department is asking that the

savings bond is held for seven

longer than other types
of savings such as mutual banks
and building and loan associa¬
years,

interest rate

the

bonds be lifted

on

not necessarily

does

tions.

that

mean

Department will issue long

tenp bonds. Issuance of inter¬
Blasts Move

Patman

mediate

and

term

long

bonds

Rep. Wright Patman, Demo¬
crat of Texas, one of the lead¬

presumably will be done when
the opportunity and the market

ing members of the Joint Ecortomic Committee members of

is

sharply assailed the
Administration proposal to raise
interest rates. He declared that

rates

ready to absorb them.

Paying

Congress,

ment

states

The

Texan,

an

that

counties,
to

have

rates

higher

pay

the

on

future.

;

of
Congress raises the interest
rate
on
savings
bonds
the
If

for raising the interest
"except
to
give
the ..... .42,500,000 Americans now hold¬
ing them would begin drawing
bankers and big money lenders
a
higher rate retroactive as of
a
larger share. of the national.-

excuse

-

Democrats,

Numerous

of

how-:

Richard M,
Pennsylvania, senior
Republican on the House Ways
and Means Committee, best hit
the legislative nail on the head.(
Said lie: "The necessity of in¬

From

and

interest rates is a very
argument for more care¬
ful spending and should empha¬
size the Administration's honest
effort to live within its income."
Several colleagues of Repre¬
sentative Bruce Alger of Texas,: •
one of the handful of Southern

;\

.

;

i

i

Senator • Harry
F. Byrd is not pleased over thd
requests
of President Eisen¬
Virginia's

hower

and

Robert
debt

the

Treasury

Anderson

to

Secretary
raise the

The senator from
Dominion State says

ceiling.
Old




indications the

debate

out

on

step in and start sup¬

market

bond
from

to

selling at

a

discount.

"Not the Whole

will

before

Even'

statements.

the

Representative Gerald T. Flynn,
Democrat
of
Wisconsin, took
the floor to lambast the

Eisen¬

•

,

;

summer

outing

Meantime, there is no doubt
but
the
Treasury Department
its

has

headaches.

fiscal

Uncle

of

debt

ceiling range

it

The

outside the

Sam

debt

the Oakmont

Country Club.

Story"

Byrd for years has
pointing out that the di¬
rect and guaranteed debt of the

Government, sub¬
debt ceiling,

is huge and

is

does not tell the complete story
of this country's debt. He point¬
out

that

Federal

numerous

agencies and corporations have
been
own

authorized

to

issue

their

obligations.

growing by leaps
and
To provide a
better
understanding of this indebted¬
ness,
Senator Leverett Salton-

some are

stall, Republican of Massachu¬
setts, and Senator Byrd have

York Summer

-

introduced

a

the

bill that would

Secretary

re¬

the

of

Treasury to make regular re¬
ports of the financial obligations
of the United States.

These

reports

not. Nevertheless, pur¬
chasers of both types are of the

include

would

L

Corporation Bond Traders Club
New York annual outing at
the ■ Nassau. Country Club, Gleri

;

Cove, L. I., N. Y.

,

Juney 12,

in¬

direct and contingent debt, con-

commitments

ance

and

and

insures the lives of soldiers

Each

these

grams are

direct

The
debt

and

United

the

of

to

the

ous

debt

ceiling,

is

already

regularly reported at vari¬

now

times and in various forms

by the Treasury Department, as
Senator Saltonstall pointed out.
On the other hand there is

no

regular reporting of the govern¬
indirect

and

contingent

debt.
eral
have
over

be

These

categories

obligations

a

grown

at

and
a

recent years.

convenient,

comprehensive

Fed¬

of

spending

marked

rate

programs

other

of

numerous

States, most of which is subject

similar

regular

means

of

and

keep¬

ing informed about them.

'

i

reported to Congress

Bear
a

have on the debt structure.
The Saltonstall-Byrd hill calls
for the reporting by the Secre¬
tary of the Treasury of the

pay¬

38ti

Lake, Minn, (preceded bz

cocktail party June 17 at

Nicollet

the

Hotel, Minneapolis).

Mawr, Pa.)
Philadelphia Securities Associa
tion annual outing at the Overbrook Golf Club, Radnor Town
ship.

June 19, 1959 (Bryn

June

19, 1959 (New York City)
of New

Investment Association

reported

may

Club

and outing a'
White Bear Yacht Club, White

picnic

annual

and

However, they are
simultaneously
in order that Congress and the
American people may be fully
aware
of the impact that they
never

(Minneapolis-St.

18, 1959

Paul, Minn.)
Cities Bond

Twin

pro¬

at intervals.

York annual
edo Club,

outing at the Tux¬

Tuxedo Park, N. Y.

Jupe 19, -1959 (Pittsburgh, Pa.)
Bond
Club of; Pittsburgh an¬
nual
•

Spring:

June 25-27, 1959

the

at

.Outing

Longue Yue Club.

,v ;• ■. * ;•

r

(Hyannis, Mass.)

'

ments
may

which

the

be legally

gated

to

United

or

make

Consumers Bankers Association

Atlantic' ^States Sectional meet¬

under

It also

programs.

States

morally obli¬
all

such

calls for

an

estimate by the Secretary of the
financial risks inherent

There should

June

veterans.

authorized but uncommitted ap¬

■

;1959 - (Philadelphia, Pa.

]' Investment Traders Association
J"' of Philadelphia Summer outing
{■' at the Overbrook Country Club

insures

bank deposits, G. I. Life Insur¬

(New York City) v;

June 12, 1959

mortgages; the Federal Deposit
Corporation

Club, Rye, N.Y.

<^rof

that both
types
are
backed by the government. Nu¬
merous
guarantees have been
made
on
housing and other
Insurance

direct and guaranteed debt,
tractual

obligations are
by Uncle Sam and

guaranteed

of New

outing at West-

Chester Country

%

Club

Bond

Municipal
-

opinion

Some of these

bounds.

1959 (New York City)

June 12,

Senator

ed

,

1959 (Los Angeles, Calif.)
Bond Club of Los Angeles an¬

June 12,

ject to the public

Treasury Debt

on

the

at

Salem Country Club.

been

United States
Seek Data

pro

the interest

hard-hittting

some

programs.

; "Under

the

tall

in such

ing, Wianno Club.
June

4

26, 1959 (Detroit, Mich.)
Club of Detroit annual

Bond

outing

summer

at

the

Essex

Country Club, Essex, Ont., Can.

.

present

laws,"

Massachusetts

"we have easier

access

said

senator,
to infor-

Attention Brokers and Dealerst

hower administration. He

TRADING MARKETS

the "inflation
scare"
the Administration
was
an
attempt to divert at¬
tention from the "biggest con¬

charged
raised
-•

by

Botany Industries
Indian Head Mills

Official Films

spiracy of big bankers and big
in history."
His charges appeared to he

business

,

with

interwoven

tainly

the

Democrats

Byrd's Views
The "watchdog" of the Treas¬
ury.

pair for viewing the stock quote boardyou have anything rose colored?"

the government
prevent them

porting

ment's

President's message to Congress.

Republicans in the House, agree
that "raising the interest rate

proposed) is the result, not
cause, of big government

all

con

bring

.

strong

.

increased rate..

rate and debt ceiling issues

creased

.

1 would receive the bene¬

fits of the

Simpson of

spending

from

mouths

t

Representative

(as

six

bonds

H

June

would not go along witli
Representative Patman. Perhaps

ever,

the

1. For instance the holders

June

income."
—

a

nual Field Day at

to

Bank

guaranteed

Political Aspect

The

high interest on borrowing, de¬
clared that there is no valid
rates-

want

propriations.

well.

as

•

"

1959 (Boston, Mass.)

ciation

"I

and

Obviously, Federal Government
rates affect corporation bonds

Govern¬

opponent

will

course

of

municipalities,
interest

on

interest
Govern¬

means

Congress is being asked to re¬

4(4%
ceiling
ment securities.

higher

Springs Hotel.

Boston Securities Traders Asso¬

quire

Federal

of
the

by

peal a law enacted in Woodrow
Wilson's Administration to lift
the

Banff

June 11,

indication
borrowing

is going to decline any

money

of cashDepartment

rate

Treasury

show

records

Neither is there any

is expected to curb
even

of Canada annual convention at

$8

costing

already

bond

the

cash-ins. However,

Investment Dealers' Association

."

.

8-11, 1959 (Alberta, Canada)

June

rev¬

year

ponding period last year.

the

of

raise the amount another halfbillion dollars for the 1960 fiscal

1959, to May 31, 1959,
compared with the corres¬

to maturity

.

.
.. is
to
spending

excess

Field

Investment

In

...

bil¬
lion a year in interest on Gov¬
ernment obligations. The Treas¬
ury plans
to ask Congress to-

1,

uary

in

is

is

It

$309*000,€00 as compared to the first five
monlhs of 1958. In other words
the Treasury department is in
the hole that much from Jan¬
as

debt

the

increasing

in

which

calendar year is

1959

perilous fiscal

a

start reducing Federal

savings
have been

II

marked clip, the Treasury's
for the first five

COMING

"No

observed:

lie

"

facing

are

we

done

bonds

their

in

in.

situation. The solution does not

the

and

E

of

concur

>

be

to

bonds. Because savers

cashing

^

obliga¬
spending

its

thoughtful person can deny that

a

criticism

'

about
future

and

Gov¬

read¬

as

ob¬

an

servation

to

even

,•

Federal

programsy "; (;<•/-

that all fair-minded
government must

Capitol Hill was not
surprise, but it 1
it immediately touched off some

sages

A

the

■;i >.'

billion,

"

jv

in

'

all necessarily

are

informed

ily

$275

"

;

we

ernment, we should be

billion. In

$289

they face.

"Since

investors

and now Congress has
before -it A .request to ?boost it
by, $7 billion to a*,total', of-$295
J billion.
*
I

the ;

increase

arid-

securities,

raised

was

to

the

'

Sep¬
tember 1958 it was raised. $13
billion from $275 billion to $288

4*4% \

the

abolish

bonds;

restriction

1958

February

ceiling
billion

sav¬

on

which

this Nation have
ceiling
increases
requested in Id months.
debt

•

been

ministration's three-way request
to

before in the peace¬

never

three

•.

of

'

time history of

Although there appears to be
a
legislative scrap shaping up,it is unlikely that Congress will
turn down the Eisenhower Ad¬

investors

-inform

EYEGLASSES

*

pur- >

'

^

to

public

'

A

Briiind-the-Scene lnterpreUtiwu

•

•

•

the

J

have

of

-

more

politics. Cer¬
conservative
Senator

like

Byrd

Representatives Howard W.
of Virginia and William
31. Colmer of Mississippi do not

Southeastern Pub. Serv.

Our New

Carl Marks

&

Co. Inc.

York telephone

number is

CAnal 6-3840

or

Smith

believe there is

a

conspiracy of

big bankers and big business to
raise

interest

the

There

are

Congress
drums

for

some

who
the

are

rates."
members

beating

Federal

FOREIGN SECURITIES SPECIALISTS
20 BROAD STREET

TEL: HANOVER 2-0050

•

NEW YORK 5, N. Y.

TELETYPE NY 1-971

LERNER 8 CO.
Investment Securities

10 Post Office

of

the

Reserve

Square, Boston 9, Mass.

Telephone
HUbbard 2-1990

-"

Teletype
BS 69

Volume

189

Number 5854

.

.

.

The Commercial and Financial Chronicle

PICTORIAL

1

Bond Club of New York

Raymond

Macrae

D.JStitzer, White, Weld A Co., incoming Vice-President; Harold H. Cook,

Co., retiring

President;

William

B.

Chappell, First

Boston

Spencer Trash A
Corporation, incoming President.

Sykes,
Emil

Shields
J.

A

Company;

Pattberg,

The

Orland

First

K.

Boston

Zeugner,

Stone

Corporation;

A

Allen

Webster

J.

Nix,

Securities

Riter

A

Corporation;

Co.

IPllI

W+sX-

V,

'

'X'y/r /

iJ^ilili
|

i

-

William

E. Hutton, W. E. Hutton &
Co.; Thomas H. Choate, White,
Weld A Co., winners of Ex-President's
Cup for Low Gross

?

Paris

Scott

Russell, Glore, Forgan

A

Co.;

Emmons Bryant,

Julius

H.

Sedlmayr, Merrill Lynch, Pierce, Fenner & Smith, Inc.
Malon S. Andrus, Malon S. Andrus, Inc.

Blair A Co., Incorporated;

Clarence

W.

Bartow, Drexel A Co.; Edward Glassmeyer, Blyth A Co., Inc.

J. Lewis, Estabrook A Co.; Ernest W. Borkland, Jr., Tucker,
Anthony A R. L. Day; Sydney
G. Duffy, Blyth A Co., Inc.; David J. Lewis. Paine, Webber, Jackson A Curtis; Blanche Noyes,

Robert




Hemphill, Noyes 4 Co.

Norman

de

Planque,
C. E.

W. E. Hutton

A

Co.;

Belmont

Towbin,

Unterberg, Towbin Co.

Avery Rockefeller, Jr., Dominick A Dominich; Philip K. Bartow, Drexel A Co., newly elected
Treasurer;
Robert H. B. Baldwin, Morgan Stanley A Co.; Earl K. Bassett, W. E. Hutton A Co.

Maitland T. I jams,

W. C. Langley A Co., Chairman of the Publication Committee of the Bawl
Journal (over 50,000 copies sold); Edwin L. Beck, Commercial A Financial
Chronidf

Street

2

The Commercial and Financial Chronicle

PICTORIAL

35th Annual Field

Albert

B.

Hager, Jr., Halsey, Stuart A Co. Inc.; James F. Colthup, Freeman

A Company; Charles L.

Egerton

B. Vinson,

Albert

C.

Purkiss, Walston
Adams

A Co., Inc.; George E.
Express Co.

Clark,

J.

Raymond

Smith,

Weeden
J.

A.

.

.

Thursday, June 11, 1959

Day

De Haven A Townsend, Crouter A Bodine; Allan C. Eustis, Jr., Spenser
Co.; George P. Rutherford, The Dominion Securities Corporation

A

Bergmann, R. W. Pressprich A Co.; Dwight S. Beebe, c/o Freeman A Company

.

Edward

A Co.; Kenneth J. Howard,
Hogle A Co.

L.

Holsten,

Salomon

Bros.

A

Salomon Bros. A

Hutzler;

Benjamin

J.

Trasi

i

Levy

Hutzler

Arthur

Wendell

New

Elliott

R. Erickson, Stone A Webster Securities
Corporation; Robert G. Dillon, Dean' Witter A Co.
Bliss, Morgan Stanley A Co.; H. Lawrence Parker, Morgan Stanley A Co.; Lincoln J. Pattor
Halsey Stuart A Co., Inc.

Austin

Brown, Dean

H. Kiendl, Morgan Guaranty
Trust Company; William G. Nagle, Discount Corporation of
York; William W. Pevear, Irving Trust Company; Robert E. Broome, Morgan Guaranty Trust
Company; J. Bradley Green, Morgan Guaranty Trust Company

Harcld

L.

Bache, Bache A Co.; Austin H. Patterson, The First Boston Corporation; Joseph
Asiel A Co.; E. Bates McKee, Bache A Co.




D. Croll,

Paul

F.

Witter

Hay,

A Co.; Edward K. Van Home, Stone A Webster Securities
Corporation;
W. C. Langley A Co.; Clifford Hemphill, Hemphill, Noyes A Co.

«

Volume

189

Number 5854

.

.

.

'r

The Commercial and Financial Chronicle

PICTORIAL

3

June 5, 1959

James

F.

Burns, Jr., Harris,

Upham

Co. Inc.;

William

M.

Cahn,

Jr.,

Halle

Halle

Allen

C. Du Bois,
Boston

A

& Co.; Percy M. Stewart, Kuhn, Loeb &
Co.;
David L. Skinner, Harriman Ripley A Co., Inc.

Stieglitz;

J.

Hindon

Hyde,

F.

Donald

Paul

G.

Devlin,

G.

H.

Walker, Jr., G. H. Walker A Co.; Orin Tuck Leach, Estabrook A Co.; Julian
Discount Corporation of New
York; James J. Lee, W. E. Hutton A Co.

Arrowsmith,
Van
Alstyne,
Noel
A
Co.;
Casey, Jr., A. C. Allyn A Co., Incorporated

Stieglitz

Wertheim A Co.; V. Theodore Low, Bear, Stearns A Co.; Edward H. Ladd, First
Corporation; Gustave L. Levy, Goldman, Sachs A Co.; Lewis R. Bulkley,
First Boston Incorporated

James

D.

Walter

C.

Veigel,

Halsey Stuart

A

Co.,

Inc.;

Francis

D.

Fairchild,

A.

Cannon,

First Boston Corporation

Eugene G. McMahon, J. Barth A Co.; E. Jansen Hunt, White, Weld A Co.; Robert A.
Don, Granoery,
Marache A Co.; Charles M. Litzsel,
White, Weld A Co.; Gustave A- Alexisson,
Granbery, Marache A Co.

•*'

*

'€#1

;

r

*•»

m

Hi

1W

a

*

W>
K

'

"

y:'-//■. /
*

i

JI

4

Oliver J. Troster,

%

•

-f?

% '/y'

a v

;*

.

\

Troster, Singer & Co.; B. Winthrop Pizzini, B. W. Pizzini & Co., Inc.; Hubert
Walker A Co.; Ambrose W. Benkert, A. W. Benhert & Con Inc.

Atwater, Wood,




F.

Robert D. Allen, Alex. Brown

& Sons; John C. Dillon, Harriman Ripley & Co., Incorporated;
Charles F. McManus, Harriman
Ripley A Co. Incorporated

,

4

The Commercial and Financial

PICTORIAL

Chronicle

.

.

.

Thursday, June 11, 1959

Over 500 In Attendance

Ernest

Dudley

F. Cates, Kidder, Pembody A Co.; Joshua A, Davis, Blair A
C. Edward Grafmueller, Pyne, Kendall A Hollister

Lucky

John

Wilson

William

Traders

Co. Incorporated;

All

Dayton, Jr., Clark, Dodge A Co.; Proctor Winter, Harriman Ripley A Co. Incorporated;

N. Bannard, American Securities

Frederick S. Wonham,




G. H.
James

J.

Altgelt,

Jr., Harris Trust A Savings Bank ONew York); David H. Callaway, Jr., First of

Michigan Corporation; Edwin Fullarton Peet, Burns Bros.

A Denton, Inc.

George E. Nelson, Gregory A Sons; Philip W. Carrow, Jr., Harriman Ripley A Co., Inc.; Dudley F.King

Richard

N.

Rand,

Rand

4

Co.;

Thorburn Rand,

Rand

A

Co.

Corporation; Norman W. Stewart, F. S. Smithers A Co.

Walker A Co.; William W. Sellew, Jr., G. H. Walker A Co.;
F. Keresey, Baker, Weeks A Co.

Charles F. Morgan, Morgan Stanley A Co.; Lloyd B. Hatcher, White, Weld A Co.; James G. Gouffer,
Drexel A Co.;

Clifton A. Hipkins, Braun, Bosworth

A Co., Inc.