Full text of Commercial and Financial Chronicle : June 14, 1962, Vol. 195, No. 6168

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

The COMMERCIAL and FINANCIAL

Established

1839

Reg. U.S. Pat. Off.

Volume

Number

195

EDITORIAL

6168

New York 7, N.

on

measures

that he has for

good while
past been urging upon that body, but he goes further in
giving final official approval to a general tax overhaul
next year that is designed, among other
things, to reduce
the burden of taxation upon virtually all of us by a
very
considerable margin.
He says that the Administration is now of the
opinion
that our present tax structure lays too
heavy a burden
a

moving out from "the recession period."
industry can be expected to bear such a burden
when recession is upon us (the word
depression appears

upon an economy

How

to be excluded from most of the official

nent.

saith not,

but the

lexicons) depo¬

is

apparently to
prevent recovery from fading out and leaving industry
and trade showing a rate of growth which is far below
concern

now

that the Administration has been

fect
the

continue
another

bearable levels. How the government is to

more

to

pay

its steadily mounting bills is left for

day.

Of course, such a

proposal or series of proposals have
advantage, politically speaking, that any and all tax
reduction suggestions regularly
carry with them. What
we
must never forget or permit the rank and file to
forget is the fact that, in the final analysis, it is excessive
outlays of government, not taxes, that burden us—ex¬
penditures that must be met either by taxes or by in¬
flationary procedures which are (Continued on page 40)
the

U. S.

PUBLIC

Government,

Public

Copy

a

Taxpaying Investor-Owned Power
By Philip A. Fleger,* Retiring President, Edison Electric

future.

Through the past 12 months the electric
leadership of the United States has continued to

■,

Institute and Chairman of the Board and
President,

advance.

Duquesne Light Co., Pittsburgh, Pa.
Utility spokesman, apprehensive about today's climate, dis¬
principal problems facing the industry and programs
superior electric

our

Though hardly in favor of government power projects, Mr.
Fleger sees the need to cooperate with those now in exist¬
He

ence.

adds

that the

Taxpayers' savings
and

expenditures

on

and-a-half times the

government can easily obtain $50

billion in the next 20 years if private utilities were
to build power facilities the government intends

economy

permitted
to

build.

climate

in

a

and

in

which

progressive

we

important of all,

which has given "the

a

Municipal

Securities

Distributors

expenditures

1970

our

billion

companies

will

be

spending about $8
facilities, and that
systems in the country

power

will be able to operate on an interconnected basis.
\
}
/ '
A,,,--' ■

electric companies to maintain
our
nation's world leadership
in

Industry Chart Book—A Dramatic Public
V

electricity.

Out of the

Although it is customary to
review at this time the

plishments
during the

of

the

accom¬

industry
preceding 12
our

Relations Tool

and

the

up

two-and-a-half-year study grew

same

dramatic

make

effective

EEI

booklet

series

"The

months, it seems to me that in
today's climate it is more im¬
portant that we discuss the

ing America's power needs,

principal problems

we

tools

the

have

programs

way

we

to meet them.

ship in electric
Here is

face and
Philip A. Flegei

under

Therefore,

developments
of

of

the

year,
before

reference

topics that demand

UTILITY

our

a

we

story.

booklet that is

Four

simply to provide a
turning to the main

attention—now and in the

INDUSTRY

of

power, and our

have

distributed

I propose to merely enumerate some of the
major

frame

of

charts

that

Investor-Owned

Electric Utility Industry." Here, in easily under¬
stood form, are the basic facts of how we are meet¬

ever

had

hundred

by

one

for

world

our

leader¬

plans for the future.

of the most valuable

telling

thousand

industry
have been

our

copies

companies

so far — the largest
EEI publication of its kind.
During the past 12 months we have taken a
number of important forward steps in research.

distribution

Within

of

EEI,

a

any

special

State,

ISSUE

(Continued

on page

30)

'

Municipal
Housing

•

Lester, Ryons

STATE AND MUNICIPAL

623

So.

Hope Street, Los Angeles 17,

in Claremont, Corona del Mar,
Encino, Glendale, Hollywood, Long Beach,
Oceanside, Pasadena, Pomona, Redlands,
Riverside, San Diego, Santa Ana,

•

EXCHANGE

FIRST

Santa

NATIONAL CITY BANK

770-1234

on

New York Correspondent

—

To

Active

Dealers,

Markets

MANHATTAN

Maintained

Banks and Brokers

CANADIAN

DIVERSIFIED

BONDS & STOCKS

Canadian Securities

CALIFORNIA

1832

Block Inquiries Invited

Members
New York Stock

Exchange

American

Exchange

Stock

THE

BANK?
Net

ESTABLISHED

Municipal Bond Division

Pershing & Co.

Chicago 3,111. FRanklin 2-1166

T. L. Watson & Co.

Notes

Southern

California Securities

Bond Dept. Teletype: NY 1-708

Bonds and

Monica, Whittier

Inquiries Invited

135 So. La Salle Street

Agency

Exchange

Offices

Securities

w

Co.

Members New York Stock Exchange
Associate Member American Stock
Exchange
Members Pacific Coast

MIDWEST STOCK

&

California

Dealers

•

NY 1-1246, NY 1-457




investor-owned

to expand transmission

by 1970 all the major

people renewed evidence of the
ability of the investor-owned

MEMBERS

telephone:

by

September, as a result of a two-and-a-halfstudy carried on through the Edison Electric
Institute, we were able to announce that through

year

Corporate & Municipal

BOND DEPARTMENT

York 8, N. Y.

National

year

American

MULLANEY, WELLS & COMPANY

CHEMICAL BANK NEW YORK TRUST COMPANY"

P.O. Box 710, New

Gross

and Public

Underwiters

Chemical
NewYork

the

Last

operate; a year of
by our industry

action

number of vital areas; and,

most

growth of the whole

business during the year. Our industry is as strong
and healthy as it has ever been.

has been an eventful year for the electric
utility industry—a year marked by a major change
the

of

by

electric companies during 1961 were
greater than
those of any other industry — equivalent to about
10% of the new construction of all American

This

dynamic

rate

measured

as

Construction

privately generated taxes at $15 billion—total $50 billion.

in

increasing

even

Product.

put at $35 billion

are

maintaining—and

be

strength.

power

are

over

ing capability, and there is no sign that they will
catching up to us in the foreseeable future.
*In 1961, electric energy production
by the utility
industry in the United States grew at about two-

cusses

underway to maintain

We

lead

the Soviet Union in electric power.
We have about three times Russia's
power-produc¬

—our

Housing,

State and

teletype:

50 Cents

,

demanding and in ef¬
promising. The remedy apparently seems simple to
authorities in Washington. The need is to reduce

taxes to

Price

As We See It

Partly doubtless in response to the recent behavior of
the stock market, but
probably also inspired in part by
general dissatisfaction with the record of industry and
trade in this period of rapid
recovery from lower levels
of activity, the President has been led to disclose at con¬
siderable length his plans for
assuring more rapid and
continuous growth in production in this
country. A large
part of what he has to say is plainly a plea for Congres¬
sional action

Y., Thursday, June 14, 1962

Commission Orders Executed On
Canadian Exchanges
CANADIAN

All

DEPARTMENT

Teletype NY 1-2270

25

BROAD

STREET

NEW YORK 4, N. Y.

Finance

Dominion Securities

DIIECT vires TO MONTREAL AND TORONTO

Goodbody

&

MUNICIPAL BOND DEPARTMENT

Co.

Corporation

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

•

PERTH

AMBOY

2 BROADWAY.
NEW YORK

.

1 NORTH

LA SALLE ST.*'

CHICAGO

(

BANK OF AMERICA

40 Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

N.T.&S.A.
SAN

FRANCISCO

•

LOS ANGELES'

/

The Commercial and Financial Chronicle
2

...

which, eaoh week, a different group of experts

QUOTE

in the investment and

us

for favoring a particular security.

Chairman of

For truly broad

all

,

but

having
loss

York 5

Teletype NY 1-40

$2,316,620.

FRANCISCO

Opportunities Unlimited
IN JAPAN

been

-

Stock

of the Japanese
economy as a whole.

picture

Listed

a

know-how in its unique
earned for Sonoco an

61 Broadway, New

York 6, N. Y.

BOwling "Green 9-2895
This Is not an offer or solicitation for
orders for any particular securities
Telephone:

n

ti

once

are

would

with
'

of

be

in

it uses, and main-

wj1^e
i

local

area

facet

of

namely

by
products

paper

rt-a-Tft H
the

SugCo.
at

Company
23%

of

Lester S. Spitzer

7L

miscellaneous

and

^^iSh:'no^

mUls

sugar

warehouses

'and-

Sonco has 13 branch

stock

$59.94

was

and

in

in

of client sales volume processed

Zealand.

.

.

.

dollar

stantial

well over the

now

mark.

A very

sub¬

part of this growth has

resulted from referrals of custom¬
ers

to

by Investment Men who desire
assist

these

customers

in

growth or financing problems. We
are

always ready to cooperate in

any way.

and

Canada

England,

Australia

Sonoco's

plant, located

will

ington,

States

common

share

of

> The

New

corporation

United

the

branch

7.

'

...

—

WE

com¬

in whose
' '

'

>■'

'f' V

'

MARKETS

MAKE PRIMARY

—

UBS AIR FREIGHT CO., Inc.
r

Appro*. $4

cent

per

with

value

book

Approx. $4'/2

Cuban-

of $24.19,

per

TRANS-AIR SYSTEM, Inc..

Latest

reports

brokers ' and

available to
dealers,

on

or

share, and

request. :

of quick

assets, the

excess

this $11 of approximately $5
$6 per share, it would seem,

v

"

Flomenhaft, Seidler
& Co., Inc.

over
or

represents
A

- • -«
^
*
small appraisal
other .worth of the

very

a

of the total,
corporation's assets.

also holds, in

Among these

,

63

Wall

Street

Teletype NY 1-5820

DI. 4-3959

other assets

are the Florida Sugar
Corporation, which has been ac¬

substantial

has

increased

from

investment

in

1950

of

jg

river

level

higher price
at lower
Sume

nronertv

front

prices.

that 3900

other

If'we

at

the

quired by Cuban-American Sugar
Company

for

approximately

,

acres were

to astohavie

$l,-?a fair market valuation-of $1,000

"■

offices

and

subsidiaries

principal cities in the
Canada and Puerto Rico




'

...

(This is under
as

a

no

circumstances

to

be construed

as

:
an

offer

.

to

solicitation of an offer to buy, any security referred to

i

Colonial

-

New Orleans, has a daily refining
capacity of 1% million pounds. ,

acreage

were

'

in

stock

this Industry

in

Over-the-Counter

Quotation Services

.

.

Talcott

based growth

soundly

panies

the

$450 000 m cash, plus 10,000 shares
present time the products
Cuban-American stock. This
made by this company are cones,
company is presently targeting for
tubes, paper board, drums, con¬
a .-production of approximately
bobbins, or near the Mississippi River. In- ! twenty-five thousand tons of cane
tainers,
cores,
spools,
specialty
folding
boxes,
cans,
quiries to various sources indit-». sugar-.in Florida next year. In
paper products, plastics and chem-' cated " t^at * this"land" has " for
addition, Industrial Sugars, Inc.,
icals. These products are broken
valuation purposes, -quotes
run—
about 90% owned, is a producer
down into several types and are
j^mg anywhere
from as low as s®^ liquid sugars at its refinery in
widely marketed. Since 1957 the {f^ooo per acre to $5,000 per acre, ;St. Louis, Mo., and sells most of
property,
plant and - equipment} depending upon the location- that'; its output to chemical companies,

An

located

share

ponents. The Colonial Sugar Company at Gramercy, La., is a large
and modern sugar refinery.
It is
well-located and
owns
approximately 3900 acres of land alcng

At the

$26,—
588,168 to $37,298,996. Total assets
have increased from $31,689,392 to
$36,979,791.
.
.

Other

30,

United States Government Bonds
and American Crystal Sugar
stock, approximately $11 per

other assets. These may be broken
down essentially into three com¬

in Tacoma, Wash¬
begin operation in

a

expansion.

having in its possession In, cash,

Cuban-Ameri-

States

Two

rep-

selling at almost
discount from its

approximately $13

Bond

Government

50

Now

assets.

reduced

can.

plants

and

newest

share,

common

Cuban

addition,

United

has,

entered

dramatic

of

aD

Sept.

$24.19, the decline
resenting -the
removal
of

position of $3,507,800, this amount
equaling approximately $4.60 per

in

one

■'!

July.

account

United States,

of

as

reduced to

other
assets
of
Sugar
as
reported in its balance sheet dated
Sept. 30, 1961, were a cash- and

plants in the

Mexico. The affiliates have

industry is reflected in the growth

billion

the

1961, this $59 book value had been

Cuhran-American

two foreign sub¬
sidiaries and two foreign affiliates.
Sonoco's
subsidiaries have four
plants

worth $5,021,250, equivabout
$6:60 per each

Cuban-American

States,

business

now

croximat^'b*?k valu7of ctban-

to

1961

period

Freight

opinion,

-

Dlant

aient

cost. At the end of

Air

our

otrer
other

miscellaneous

a

In

in

of 1909

Sugar

common

land

valSabhk£

;

approximately

of fhe

expropriation
of approximately 430,000 acres of

was

operations, and its investments in
these subsidiaries and associated
firms
are
carried
on
Sonoco's

.The

.

Plior to Castro's

Stock

supplemented
its domestic markets with foreign

annually

management

American Sugar

long

tan Growth Industry!

American

1959, for in that year, they
purchased 60,100 shares of their
own stock, and it is interesting to
note that in 1959, Cuban-Ameri¬
can Sugar sold
at a high of 3772
and a low of 15%.
7
7

early January, 1962, this block of

has

IV u

in

o w ns

all

-

'r

rather optimistic
about their own company's stock

machine, located

in

Service to American business and

BEekman 3-3622-3

Telephone:

felt

California, will go in produc¬
tion about July 15, 1962.

The newest paper

The value ; of Talcott's financing

*

6,N.Y.'

-

the, United

Cuban

outstanding
of
the American
Crystal Sugar Company, and in

United

OFFICE:

YORK

densely

now

Company's

evidently

Gramercy, La., is very much ill
being as a contributing factor to
the Cuban-American Sugar Co., a

addition,
Sonoco
has expanded
substantially its paper board pro¬
duction facilities over the years.

j

NEW

149 Broadway, New York

and i.

in

areas

128,

The

Sugar

the

Colonial
ars

.land

Route

States.

ing and cooling; and now account .that they are operating.
for
more
than 5% of sales.
In
The
Cuban-American

!

Securities Co,9 Ltd•

in

acreage

outside of Bos-

throughout

areas

nn_

industry, which builders have ac- -prists and informative. However,
cepted with steadily -increasing it js not within the province Of
enthusiasm. These products have
security analysts-or stock'brokers
proved particularly useful in conteu management, «r Influence
nection
with
sewer
and - drain management, in. what they deem
lines, .concrete construction, heat- best as a name for the company

7

DA I

populated by electronics and other
industrial plants, and similar ex¬
periences may be noted in other;

^re

a

p*>

; change in the corporate< title to
pipe, Sonotube, Sonoairduct, and •the Colonial-Crystal Sugar Com¬
Sonovoid)
for
the construction pany might' be* far more1 appro;-

SERVICE

the

strikingly brought

are

farm

around

!°nP?"y„S„°?
erations

diversification
the

m

.rnmnanv^

Several years ago

books at

SECURITIES

value of $18-20 per share.

a

merly

company,

Sonoco began
produce in large volume a
variety of fibre products (Duro-

billion dollar

.

has taken place in what were for¬

to

Talcott's

in

paying $5.50 for. assets

ton, Mass.,

earnin|s

extensive,,research facilities
bothu to develop new
products and to process and
improve older ones. The cone and
tube
operations, which account
for
nearly 65%
of sales, have

Sonoco

.

about 13 represents

Values of industrial
our own

strengthened by

industry.

saving^

branch offices

JAPANESE

discount of more than 50% to
probable book value of the

a

corpo-

e s

held

Cuba

our,

7 highly, the

of

designed

•

ket price

Stock

tial

prop or

V Mobile, Ala.

Direct wiresj to

in vjew Qf the fact- stock or, in other terms, a Buyer

amount

tains

in

seems

NY 1-1557

-

forth by the astronomical rise that

ized machinery

Sonoco

Company

York

somewhere

be

longer condevelops and P**®- tributingtothe
the highly special- ;

duces much of

in

,

v-■'.*'*
i

range of $28-$30 per share, with
$10 of that in cash or readily mar¬
ketable securities.
Current mar-

no

is

position

resulted

0\JR IA

today

St., New York 6, N. Y.

HAnover 2-0700

New Orleans, La. - Birmingham, Ala.

estimate the value of the,
Colonial Sugars refinery alone at
$8 million. This property would
appear to be carried in the land
account'".'for''"$257 thousand or 34.
cents per share. Actual book value
therefore

very

subata

favorable competitive
position.
' 77
7
.7,
The company's strong competi¬
extremely

tive

Ltd.

name

^mainly^cones^and^tuD^s ^^leadingf
and allied indus

has

field

New

^xcnangej ^jg company's

textile

the fact that it

The Nomura Securities Co.

nas

emphasis

the

on

exchange
Exchange

sources

v

The $u ban-American Sugar

the manufacture of paper

tries. This

Digest, and our other reports
that give you a pretty clear

H. L. McAllister

Stock

of the Cuban-American stock may

Boston, Mass.

of

company s

the

a

Partner, Draper, Sears & £o.,

..

carriers,

the

LESTER S. SPITZER

.

for

v

as

,

six

on

and
regarded

is

Stock

American

run-between $5:50 to $6.00. A1-'
though total plant is; carried on
the balance sheet at a depreciated
figure of $6,411,446, New. Orleans

is traded in the Over-the-Counter

,

years.
The

.

York

New

Members

19 Rector

Market and is quoted regularly in
the NASD quotations.
% ;• *
-

Members

n e s s

management,

Co!

Steiner, Rouse &

less

or

high-grade investment with good
future growth potential. The stock

of}
In?

sales

average

i

u s

stock

common

doubled

every

Monthly

excellent

•

Sonoco's

Co.—,,
Spitzer, Partner, Draper, Sears & Co., Boston, Mass.
(Page 2)

in each of

more

"

Lester S.

long period-of years. The
company is w^ll established, has

years,!

have

Wire System

a

Bought—Sold—Quoted

Company, Charlotte,

(Page 2)

.The Cuban-American Sugar

a

over

in^

taxes

after

63

CHICAGO

our

|W;f
,

earnings,

an

for

N. C.

'

operating per acre, or $3,900,000 in terms of
throughout the world and has had; potential
equity
per
share of
a
Steady and satisfactory growth Cuban-American Sugar, this could
specialized b

net

with

1961

Exchange

SAN

years,

of

'$41,266,460

Member

Private

63

g^oc^ because it is

was

sales

in

Established 1920

Nationwide

h Dickson &
•

the years 1950, 1955 and 1959.
I like Sonoco Products Common

capped by an
all-time
high

CORPORATION

BOSTON

of

worth

now

.

This

record

HANSEATIC

its

of

one

slight
$1,873

a

of

1924.

in

NEW YORK

PHILADELPHIA

is

stock dividend

10%

a

1899, Sonoco
Products
Co., Hartsville, South
Carolina, has operated profitably
in

120 Broadway, New

stock

common

100% stock dividend in 1952 and

a

in

Incorporated

call "HANSEATIC."

WOrth 4-2300

the

Products

is about 4 to 1. The company paid

Sonoco Products Company

speedy executions,

American Stock

Company—Harry McAllister, Chairman of the
Executive
Committee, * R. 1S.5

the Executive Committee,
$5,882.00 through stock dividends
\ '/ and market
enhancement, - which

and accurate,

Associate

Louisiana Securities

Sonoco Products

R. S. Dickson & Company,

Charlotte, N. C.

V

in

462.50

;

-

Sonoco

Over-the-Counter

coverage

Alabama &

-

Participants and

L.

in

for broad markets

issue.

Write

Thursday, June 14, 1962

.

Their Selections

advisory field from all sections of the country

participate and give their reasons
harry l. McAllister

any

.

This Week's
Forum

A continuous forum in

can

I Like Best...

The Security

Brokers, Dealers only

For Banks,

You

„

<2754)

sell,

or

herein.)

Sugars

Company,

Facts relatively unknown to the

j general public

are

that: a

Company,
Continued

National Quotation Bureau
Incorporated

joint

1 venture partnership by the S. C.

Johnson

for 49 Years

• near

Inc. 'and
on page

41

Established

46 Front Street
CHICAGO

-

'

1913

New York 4, N. Y.
SAN

FRANCISCO

Volume 195

Number £168

v..

The Commercial and Financial Chronicle

(2755)

3

*

CONTENTS
»

*

#

-

Thursday, June 14, 1962

U
AND

ByHon. Douglas Dillon,* Secretary of the Treasury
■..
;•'•'Vt
»'1

•

"O

>t

-'imminent"tjprice inflation;. (2) in categorically denying Mat-the
>
policies: are not antbbusiness; ;■ and
iin ^announcing t *i
*thp4o>bottom reductions" in income 4ax3s Iwill; bs prapissd to
"...
CongressmexfJanuary and will not comprised hasty, 111-cortsidered
v reaction to .the.,gyrations *of ihe stock mnrk3t.w Put forth In gen? raU
•Jterms.: are; the Administration's national economic objectives0 and v'
t.

,

.

'

PAGE

Strength of Our Nation Depends
Investor^Owtted Power_

suited from disillusioned fears that current deficit financing .means ,,.f >
,

Articles and News

.

Secretary 'Dillon "offer* more1 than Monday-morning-quarterbackuig **
(1) in explaining the stock market's recent precipitous decline ie-!. ;?

■

Taxpaying

<m

_____

Stock Market Brides Were Based oh Untrue
PtemtseSw-L_l_u_£___^-____Hon. DquglaS

>

"'ministration's

pany

^UCHTENSTEIN'S
-

WONDERFUL WORLD

1

OF OBSOLETES"

5

*

*

-

.Philip A. Fleger

com

Diildrt' 31

~

:

Suryiye21_---^_^_t___i_^_-____..WUhejm

'Vi

•"

Dillon .strikes Jiard' at mirages and their

1

stock market's jpanic was .due to a drop fin 'foreign

V-fW

t. •:

■*

as to ; 1

.

:still achieve

a

'

profits' essentiality to

recognizes

free enterprise systeim

our

i*

f*-:

I

President Kenr .this year., has -made ther achieve-'
hedy told a Wfiife. Hobse tEco- men* of put 1963 ••'Gross,. National1 •
nomic Conference that we "miist Product goal of *$57tfbfllion much
>
distinguish
between, myth and more difiiciflfc, the rapid advance *
reality in con*-'
'• *' ;
t of tecent months nrieans,tbnt.the
;
sd de r i n g' topossibility of success still remains.p day!® complex J
We 'will; in; any event, come 4pse
e c o n o m i c» f'HRnH to dur igpal, for the. t?asic. ihgte- i;
weeks

JSiftce' art

izrtr

portant

1

e

e

:

-

the

ma-nt

of

job "of

finan- ;

tfeca- eas

public understa n-ding of

have this

Douglas Dillon

op-

m0?1^

-porfeunity- to .V-.
^
discuss, some pf them. .'jAv week
ago today (May 28) we witnessed
a
phenomenon that should give
us

all

pause.,

..For,

during

coprse, of' that day, all vestiges"
of reason were temporally Pushed

.

:

!

'

tion and income. The latest
firmation

shows

New Horizons in Electric Power Transmission

'
The Japanese

inCvitably ^had 4ts impact *upon
profits, which, on a seasonally adjusted basis, were apparently little
the .fourth quarter

con-

of

up

businessmen

expected

1961.

clear sign of con¬
expansion. Sea¬
sonally' adjusted
unemployment
also declined—asr did the overall
rate
of unemployment—hut the
major significance of the May fig-

But

with

"the -economy

surge

in

the

sharp

the

»While

hesitation

DIgby 4-4970
As We See It^_-—

Businessman's: Bookshelf

40

„—

-

Coming Events in the Investment Field

^

'Commentary-

Buckingham Corp.

64

—^

R. Lefkoe U

Dealer-Broker Investment Recommendations-—

Einzig: "The Communist Bloc's Economic

*

/

Prablems"-

.

Electronic Capital

.

r

.I

Electronic Int'l Cap. ltd.

;

News

Indications of Current Business Activityv._

Market.. . and You <The)__
■,^ Mutual Funds——-——1——

43

33

Public Utility Securities. & i

American Safety

4
13

—

-

Singer, Bean
&

Mackie,

44

Prospective Security Offerings.—

HA 2-9000

It

Security I Uke Best 7(The)

35

-

State of Trade and Industry

:

Direct Wires to

Chicago

—Donald D. Mackey

Cleveland

Philadelphia

16

(The)

40 Exchange Place, N. t.

Teletype NY 1-1825 & 14844

60

Security Salesman's Corner.

inc

41

-

—

Securities Now in Registration

V Tax-Exempt Bond Market

Equipment

14

GbServatIons-2-J_—-_-i._l--_____-A. Wilfred May
Our Reporter on Governments

'

?

^Wallace Streete 17

News About Banks and Bankers————-

■:.:v

American Intl .Bowling

•

Ckrlisle Bargeron 33

;

.

8

14.

Prom Washington Ahead of the

St. Louis

Los Angeles

San Francisco
Washington

6

2—_ 64

Washington and You-

are

..

,

-

narrow range in which they
have moved for the past three

the

FINANCIAL

COMMERCIAL and

Published Twice Weekly

CHRONICLE

Reg. U. S. Patent Office

*1

years

WILLIAM B. DANA COMPANY, PUBLISHER

_

breaking sharply opt of
.

-

The

and will reach

a new

25 Park Place, New
CLAUDE

;

;

D.

record

been

warranted

by

the level

Continued

on

page

of

1

REctor 2-9570 to 9576

^

1

WILLIAM DANA SEIBERT, Treasurer
*

GEORGE

MORRIS SEY,

J.

Editor

L F. MacDonald

Thursday, June 14, 1962
Every

Thursday "(general news and advertising Issue) and every
(complete statistical Issue — market quotation records,
corporation news, bank clearings, state and city news, etc.). Other

Monday
Office:

135 South La Salle

'38

St., Chicago 3, 111.

Copyright 1962 by William
office

PREFERRED STOCKS

President

^

high) Well above $50 billion. TheSe
larger profits clearly justify stock
prices higher than would have

i

York 7, N. Y.

SEIBERT,

1, r

Reentered

have-specialized in

41

pre-tax corporate profits for

in the early months of

For many years we

;

1

(Editorial)

Bank And Insurance Stocks

that

1962

Health
of

forecasters

total

of new jobs.

economy

'Broadway, New York 5

the sales dollar has de¬

business

among

upward

Quotes Ford on Economy's

in

clined, there is general agreement

economic

lies

ures

LE Reilly & Co., Inc.

_

profits

a

—

Economy^-^——.George L. Bartlett 32

tbe^ postwar period _the share of

across

country hired half a- million
more new
employees in a single
month than would normally be
our

tinued

•

R. G. RincliHe 29

•trt':

-"Ofth^eco^

.

that

v;

-

39

revenues.

in the May
picking -up steanv—as it-has-during
employment figures: -non^agriculthis second quarter — corporate
tural 'employment rose beyond "the
usual ^seasonal expectations by an profits can be expected to increase
with it ^Despite the fact that over
impressive
500,OOQ - • jobs. •» This
means

James W. Cook 27

'

Even more important, ,
^government Is well aware ithat the y;
economiG .growth weyalLseek deeconomy and its. relationship to pends jpon the abiHty of capital,
stock market prices.' y" '■ •4
"41 as
ns labor, :*to earn a. fair!
The
Current ^recovery started r^rn*
"
just 15 months 'ago. After a midThe disappointing performance hesitation, * the economy
picked up steam in March and has
been moving ahead rapidly ever
since to record levels of produc-

MELNOR INDUSTRIES

E. O. George 25

-

..

^

Jn

winter

DYMO INDUSTRIES

•

—Roger M. Blough 24

Innovation and Progress.—

.are

-

"

STORES

Daniel J. Berrell 23

-

we c?n

Profits

;

considering why that happened,-! think it would be helpful
to review briefly the state cf our

.

KING'S DEPT.

Sutton 21

Bridge Badly in Need of

a

Rebuilding——

,

-

EQUIPMENT

Marketing Xieadership In Electric Utility-Growth

essential to our iree
aside, and panic took control of enterprise system. This fact is as : .
ythe great New Vork Stocki JEx- fully recognized-Jby those an ;govchange—touching off similar re- eminent as by those in business, .
r
percussions in security t markets since - government-1 depends' op
; throughout the world.
; : i y f •: ? profits for a large portion -of its
.

MONROE AUTO

——Howard J. Cad well 22

Confidence Is
-

.

the

IL. V.

_—

Oi-i y''-':

jlook- forward
confidently to commu&d^PPPmm f
progress. This advance/will 'further, lower our,, still-mtolerabfe-;
level of unemployment. It :should'
also bring with it a rise in cor- y.
porafe profits; t
"

.

:

*

William F. Treiber 15

v

Growth-

.

piexities, I am
rnbst-imppy^^ to

-

E. F. MacDONALD
:

•

SEC Withdrawals Mount As Stock Market Slides

credit is plentiful,, and. employ- ^
inent is ,,rising.. Because of the
underlying health .ofaur economy— and despite the decline-in^com-- ^
prices pver recent ^

^

economic corn-

v';>":/■

Expansion—_

.$20 billion higher ;than a year ago,; 1
Tnstelinent debt is relatively lpw,

e-"

10

Tetal Electrie-^Total Sell! To Revive Industry's

leading Industrialists, Mr. Henry,
Ford. s,o aptly.pointed out just re^,KI£JmI' cetttly, disposable income today is

cial writers is
to

9
10

Public Information Program to Combat REA's

dients; of tjbntinued progress are'
'''BMpr?'^^■;.all at ihatid.. As one -of our nation's: f

bi e'm-s

YORK

4-6551

-

ago,

.

p r o

Cobleigh

Ebohomlc, Outlook..__PauT W. McCracken

Outlook for Investor-Owned Gas Utility Industry
V
*
C. Austin Barker 18

.

;

NEW

WHitehall

7 i;

Whither the "StocklMtarket? .iLeonavd Goe Scruggs 12

;;

STREET,

"

-Some Current''Banking iand Monetary Problems
■

*

"Two

U.

WALL

5

New Officers,of <tke Edison Electric Institute—

* K
GNfy fanit dVers 4he ^Government fully ;y !

$510 billion

GrowthL___________Ira
Current

^

ability to end the ibalance^of payments deficit] surmises we may

our

t

confidence

C

• -C*

99

Telephone:

Rocpke

Utilities for Rising Dividends and Continued

..

4

*

,

Gold Production Subsidy Opposed by the Treasury

* methods io achieve f full'employment and, rapid;igrjowth^without r :
,:.
impairing the jir&ce stability that we have already achieved.'! B&Ut"
mythical bases, at the con\ v: ' fusion' of facts with .fiction, and it exaggerated fears. He denies the

:

.

Jtlarriet Seibert

Will West Germany's JPree ^Enterprise System»

.

*; /

.

iFalse Prediction--

.Another

.

~

:

as

second«elass

New York,

at

C

matter

(Phone STate 2-0613).

B. Dana

February 25,

Company
1942,

at

N. Y., under the Act of March 8,

the

post,

1879.

SUBSCRIPTION RATES

■

MONDAY AND THURSDAY EDITIONS (104 issues per year)
In' tUnited States, U. S. Possessions

and members of Pan American
of Canada $68.00 per year;

Union

$65.00 per year; In Dominion
other countries. $72.00 per year.
1

Spencer Trask & Co.
^

Founded

Members -New

25 BROAD

1868

York Stock

THURSDAY EDITION
In

Union
other

countries

Newark




year)

$23.50 per year.

TELETYPE NY 1-5

OTHER
Bank

and

Quotation

M V. FR1NKEL & CO.

Postage extra)
Note—On

.

account

Chicago

Schenectady

Glens Falls

Worcester

PUBLICATIONS

Record—Monthly,

*

$45.00 per

year

(Foreign

39

BROADWAY, NEW YORK 6

s

of

the

remittances'for "foreign

Nashville

per

INCORPORATED

ST., NEW YORK 4, N. Y.

Boston

<52 issues

U. 'S. Possessions and members of Pan American
$20.00': per year; in Dominion of Canada^ $21.50 per year;

Exchange

TELEPHONE HAnover 24300
Albany

ONLY

United States,

fluctuations

and

subscriptions

made in NeV York fupds.

.

.

'

T

in

*

the

rate

of

exchange,

advertisements must be

WHitehall 3-6633

Teletype NY t-4040 A 1-3540

4

The Commercial and Financial Chronicle

\

(2756)

OBSERVATIONS...

individual

Unfortunately,

7

"au¬

companies,': "if
director

observations on the their
optioned stock,v along with
implications of the mar¬ practically all others!
ket's
"slide"
(that most happy
While this quite unprecedented
euphemism) continue to befuddle. market decline upsets, or at least
In President Kennedy's news conp
postpones, the one-way operation
ference last week
(June 7), he of this so-called incentive reward;,

other
were

rule

exercised by any
the three highest paid

granted, to

by the yardstick used, to wit, the
current
market performance
of

for

no'" Options

SEC

the

Under

.

rendered

That is the verdict now

UNCONFINED

Thursday, June 14, 1962

.

.

less zestful and/or effective?

come

BEFUDDLEMENT

.

or

or

billion dollar deficit

THAT POLITICAL

divided

suggested

have

the

inconsistency between our skepti¬
recently expressed in this

erstwhile

of

June 6)

24 and

May

(on
the

over

jibing

Eisen¬

Mr.

at

hower, during the 1960 campaign,
for his deficiteering record, over

cism

space

six
years
of evenly
budgets and deficits;
President's veering from his

following

"EXPLANATION"

readers

Several

the latter

—

Administration's expla¬
the
Market Bust as

balancing

debunking

vious mid-Bull Market
the
a

technique

respondent
specifically reminds
us
of our erstwhile anti-inflation

not

a

state of the economy,
"top-to-bottom" tax cut.

depressed

street.")
while we have' re¬

for

one-way

Actually,

accounting
Dillon's
during this non-

Secretary

or

given

pledge,

the
the

technical

guise of
changes;

'growth,' at 30 times it's 'infla¬
along with calling atten¬
tion to the fact that "inflation is
is

a

Nor

peatedly
denied .that
inflation
consistently acts as a major mar¬
ket influence, we hold that the
market's
current break
demon¬

surely

international
including

are

monetary developments,
some

even

*

(2) Even acceptance of the Ad¬
ministration's
"contra - inflation"

prospects.

country

,

by and watch a re¬
out of gas," was his
pronouncement. "We
program to boost it and

covery

the

have

a

that all those who are con¬
cerned about their stocks [sic] or

And

surely there is

link

motivation

the

as

such in¬
omitted."
It
appears (as confirmed by current
practice) that such exemption is

lose

extended

restored

the

FOR

TAX

the

While

Now, after the 20% drop in the
averages, rather than the

expecta¬

versal of its inflationary

tions."

tion

panied by a 70% rise in
-

believe

advanced
via Messrs.
Kennedy, Dillon and Heller, is
completely spurious, on two

flation"

explanation,

^

"contrain-

that the

stock averages;

mon

Spuriousness of the Argument
We

■<<:

.

tionee;

The Commission's rules for dis¬

market

U-5S,
are

The Administration's poli¬

cies and deeds could not have led

confirming

full

the

participation in the bear
industries

of

benefit

from

utilities

and

its

of

bonds

other

and

fixed-interest media.

Surely the investor has not in¬
terpreted as an inflation-to-defla¬
tion
trend this Administration's
rapidly proliferating spending

that

would

fire

and

as

the

casualty

and, conversely, the
unique market strength of the
gold shares, largely attributed to
dollar devaluation expectations.

companies

Thus

we

—

must recognize the Ad¬

ministration's

"non-inflation"

a

$1

its

as

amended Sept. 8th, 1961),
stringent than those

more

billion surplus

to

seven

a

ex¬

issue

which

on

pared with

selling will

sales to

register

tax loss,
while
the
advantages
are
still
larded with unrealistic delusions,*
in any event the investor's judg¬
ment is exempted from the illogi¬
a

*

*

*

RUNNING

to

seem

illogical
the

of

open-end

closed-end

"black"

have
our

f'l v

tjv

v

'

i\ J; '

;•

joined the investment staff of
wholly owned corporation,
F. Eberstadt & Co.,

course

of

has

joined

our

Institutional Department

the

activities

Public Utility

Holding

Act, should deny

Companies

of the above-cited

after

delay of

a

few days before Lieutenant

a

Carpenter's flight, the propaganda in

was

that it would be six months before

put another astronaut in orbit.

week later this prediction was

proved false

Once

in

more

Russia

again there is proof that the United States
advanced in space

capability than the leaders

willing to admit.

are

their

Mrs. Florence

Carpenter, the mother of the astronaut,

believes that another Communist
prove

shown

false. In commenting
by her

with such

son,

men

can

on

prediction is certain to

the magnificent courage

she wisely remarked that a Nation
never

be

"buried."

re¬

during the
days of last month, have

.';

—

HARRIET SEIBERT

ago, when they were selling
approximately 20% higher. '

Similarly, and more significant¬
ly, the closed-end companies (in¬
cluding Adams Express, General

Japanese Securities

American Investors, Eurofund,
General Public Service, Tri-Conof

are now

decline

from

quoted at rates
their

respective
tops exceeding the concurrent

fall

of

the

general market

Thus

the

discounts

aver¬

from

YAMAICHI SECURITIES COMPANY

asset

value, as usual, have illogically widened instead of narrow¬
ing in the face of greater mar¬

of NEW YORK, INC.

ket values.

Tri-Continental's
market

lowed

greater-thanprice decline has been fol¬
by a rise in I its ordinary

Brokers and Investment Bankers

income dividends.
*

F. Eberstadt & Co.
65

Broadway, New York 6, N. Y.

PUZZLER

*

*

FOR

Affiliate of
STOCK

YAMAICHI SECURITIES CO,

OPTIONEES

LTD.

TOKYO, JAPAN

Do the present holders of stock

options

June 11,1962




use

Reset.privilege.

year
'v-

ages.

Pike H. Sullivan, Jr.

Commis¬

re¬

company

1962

and

its

by Carpenter's successful orbiting three times around the

behavior

tinental)

Managers 6? Distributors, Inc.,

under

the

regulatory

meanwhile,

in

since been cashing-in their shares
at a somewhat greater rate than a

Orhan I. Sadik Khan
'

re¬

companies.

Shareholders,
strained

and

And

sion,

still

reporting individuals.

i

be

behavior—as

in

the

Less than

Scott

States could

United

is far

to Form

Holders

the

earth.

cal year-end pressures.

shares, and the market action of

Neil S. Atkinson

a

the Soviet Union

On

demptions

that

was

level.

evidenced

announce

When there

Commander

turning to

pleased to

grants

(2) Unexercised
held by the

Another False Prediction

obviously be less
than at the issue's higher market

—True

are

(1) The dates of the grants of
the shares listed as exercised.

jyou

other securities.
Your immediate capital gains tax

Fund

We

as

some

FUNDHOLDERS

tion.

items

well

as

fiscal year, are:

time during the calendar year
held an Option to purchase shares
of stock; and must also disclose his
annual cash compensation at the
date of each grant of Option.

long-term appreciation, but
you
consider still over¬
valued, either per se or as com¬

of

amending

exercise

omitted, in
by rule,—in
the Proxy statement by the ordi¬
nary companies, even by those in¬
dividuals reporting per the current
Among;the

practice

any

which

the planation of the market wallop as
Eisenhower-inherited budget from just another strategic rationaliza¬
projects;

share

have

on

deflation,

per

category to scrutinize
at these reduced quotations,

the

invalidity ; is

explaining the market fall by
the
government's
alleged noninflation fiscal policies, has been
market

dictment

the

*

years.

the

Another
now,

of

long-term
and

have the con¬
solation of their being usable as
you

com¬ ^"short - term"
losses to offset
»
ordinary income, during this and

Behavior

Also

period,

succeeding

the investing

public to forsake its
distrust of the dollar
closely
reasoned
in¬

,

month

each

exercise of option.

Registered Public Util¬

ity Holding Companies via their
annual reports (set forth in Form

habitual illogical seasonal concen¬

Inconsistent Intra-Market

as

grounds.

V

the

,'L Jtt.

by the Administration,

(1)

deflation, a

or

stationary price level was accom¬

v:-"'--."

-

inflation

and

of

present

budget deficiteering does

used to the full,

date

at

op¬

share market

per

stock

stock

tax-advantaging price of : each share optioned to
statute may well become long de¬ such
optionee; the number of
layed, or turned down by the Con¬ shares acquired by such optionee
gress,
surely
the
SEC
could upon each exercise of stock op¬
promptly go ahead with at least tioned; and the per share market
equalizing its own disclosure rules. value of stock at the date of each
option's

closure by

MANEUVERING

of

of

grant of option held by such op¬

prospective reform of the

ment's

shares

grant; the

value

Depart¬

Treasury

of

number

Disclosure Consistency Called For

back¬

not

were

Form.U-5S for Regis¬
Holding Companies, as
amended, the SEC further calls
for
disclosure
of,
among
other
items, the date of each grant of
option held by such optionee; the

that tration of tax-motivated portfolio generally called for in its Proxy
rules
under
the
Securities Ex¬
into
Novembernot spell maneuvering
"inflation," would not necessarily December, is a good time for the change Act (item 7), in part, as
as
in the hard-selling of mutual
follows:
imply agreement as to its cause investor to scrutinize tax-saving
fund shares, to rationalize partici¬
The Public Utility Holding
of
the
stock
market
debacle. possibilities.
pation in the booming market's
Most
recently in the 1958-1961
Remember, if you were un¬ Companies must provide the pre¬
over-valuations,
it
is
equally
scribed
information
concerning
interval, repeating many periods fortunate enough to get caught in
illogical now to ascribe the mar¬
each officer or director, who at
of divergence between market ac¬ quotation shrinkages within a sixket's Break to sudden public re¬
inflation was

out¬

tioned to such optionee at date of

which

Under

including the thesis

claims,

While it is true that the specter

of

of

disclosure

to

grants

exercised during the instant fiscal

each

than

year,

be

gross unfairness of such "welsh¬
ing", it must be realized that this
the entire option
process
as
constituting ordinary
compensation, undeniably calling
for corresponding taxation.

use

routine confirips

will

for

TIME

INVESTOR

-

fiscal

may

tered

Tuesday, of his taxcut program to be
"passed this
year at all costs."

1

you

last

formation

market's action. In addition to the

reiteration,

OPPORTUNE

-

be

now

issuer's

standing

market-economic

the

to

ground

win - tails

$30,000 since the beginning of the

of the Reset privilege;
that is, changing the terms in mid¬
stream
by reducing the o^tioh
price to accord'4 with the stock

pro¬

more

Freudian

subconscious

a

-

can

through

run

I hope

heads -1

routine

recent

of

value.

dollar's

the

this

more

investor

increased

confidence in the maintenance

strably is not, as the Administra¬
tion claims, ascribable to investor
disillusionment over the inflation

for

"There is no
to stand

divergence.

need

devaluation rumblings,

for

making

demonstrated

he

their profits or their jobs
by Budget help us get action? on this
this week; Mr. Bell's gram."

seeming hankering to doctor
score - keeping
rules under

tion'

which

in

tion,
their

reiterated

Director Bell

expressions: "when a stock sells at
20 times earnings, the justification

again contradicted his initial postinterpreta¬

Break market-business

separate capital budget

tion to the

as

atten¬

deficiteering,

toward

ness

exploitation of "inflation"
market support. " (One cor¬

as

of

aggregate remuneration exceeded

budget helplessly

of

condemnation

his

to

outworn mythology,
in his Yale
being caused by investors' aban¬ as stated Monday
donment of inflation expectations; commencement address; the Presi¬
and on the other hand, our pre¬ dent's citation of European pronenation

officers of the issuer whose direct

economic

MARKET

thoritative"

WILFRED MAY

BY A.

agree
that
their
man¬
agerial efforts have suddenly be+

Cf.

"Twisting the Calendar,"
vations, Dec. 14, 1961.

Obser¬

111

BROADWAY, NEW YORK 6

COrtlandt 7-5900

Volume 195

Number 6168

The Commercial and Financial Chronicle

...

(2757)
/"

tory

~

mg

countries'

including,

our

West Germany's

,

V

economies of
Discussion stresses both the

ewn.

requisite and the prerequisite economic factors for a non-inflationary,

v;f< non-coltecfivist, viabJe

economy..

.

his friend'

..

an eco-

js

case

France

of

since

of

1958.

monetary policy, which By ending the deficits of the cenreign- tral government, resisting inflaeconomic ideology.
tionary wage demands, and under-

followed

German

less faithfully,

more or

less

.the

more

successfully, but unques-

market

Associate Professor of Economics at Bucknell University

and

economy

more

greater

monetary discipline.

But

even

in

awareness

only

an

the

of

economic

fact

ly popular and

system

concerned

are

is

tary discipline.
the

population is

lieved at the

the

that

,

news

Argentine

cepted

con-

In Argentina,

the

immensely
that

has

invitation

to

become

on

page 42

fortune, and

quently meets with indifferent ac¬
ceptance or even aimless cavil¬
ling, in the rest of the World the
prestige of the German program

the

of

They
become

inured to good
circum¬

stances

economic

personalities
4

and

freedom

mone¬

tary discipline is still rising. This

and

prestige* is

which

robbed

set the

that

great

so

it

Socialism

western

has

of

its

recovery have
been all but

and simultaneously
forced it into the strangest of by¬
ways: for the masses, in
whom
Socialism
presumably finds
its

forgotten. To

chief support, no

own

stage for the
unexampled

certain

this

a

is

natural.

quite

program

longer-want to

Wilhelm Roepke

.

happened in Germany was
"the program" of the age.
Indeed,, it flew directly in the
of

the

fondest

beliefs

which
ket

soever

clichC which by now has become

Which

in

truth stands out from the Ordinary
and the usual.. It may. not have

been

a

"miracle" but it

was

highest degree astonishing. What
was astonishing was not the proof
provided by the German experi¬

no

reason

to hide behind

economic
era

in the

" of

a

policy.

-

many

follow these particular poli¬
so because they knew that

cept

cies did

:

"Brooklyn's Oldest National

Ger¬

INTO

lead to greater welfare for all the people in a conte*t 'df order and stability.

has

this

part of
of.our

ITS GROWING

BANKING

FAMILY

"

:

-

-

"

(Effective, J.une l, 1962),.

'

1

,

:

,

.

Which Was

a

reluctant

been

of

act

this in itself is

they would
^

41
OF BROOKLYN

Whereas in the

National "Socialism

destructive of
freedom and progress both in¬
ence that a,country's adoption of
ternally and internationally, - its
the free market economy and its
social market economy has sup¬
adherence to monetary discipline
plied the opposite and inspiring
will provide it with valuable eco¬
example of a constructive and
nomic
stimuli
and
advance
the
beneficent p o 1 icy-wh i c h has
people's welfare in a context of
strengthened not only the internal
order and stability. That is always
economy but fostered the growth
and everywhere to be expected;
of
the
international,
economic
the proofs' of it have- been sup¬
community as well. • '."V»,' - ~'t
plied over and over again. And
Unfortunately, the .world as a
those who recommended that Ger¬
whole

OF

what¬

had given the world the
repellent example of an economic

policy

MERGER

false mod¬

many
.

THE

1

esty in its unexampled accom¬
plishment in the realm of eco¬
nomic
policy.- For
this
policy
represents in one sense. merely
the expiation for Germany's ad¬
herence in years past to a wrong,

rather wearisome. And yet some¬

here:

ANNOUNCES

mar¬

collectivism

and

economy

•

what

happened

mixture like this of

a

gives rise.
:
Germany has

happened in
Germany as an "economic mira¬
cle" is to resort to a journalist's

thing

the

to

popular shibboleths of the
postwar period. German history
could have : taken quite another
course than it did.
V.
-

Viii-/-

-v

are now paying attention
economic
anomalies
to

removal,

and

most

describing

•

Villi

Brooklyn)

quences

on

face

President and Founder

confronted, e.g., with the conse¬
of rent control and of its

what
not

JACOB LEICHTMAN

Senior Vice President

National Bank of

omy.

like other peoples, are in¬
clined with the lapse of time to the other countries that have imi¬
take things for granted. But it is tated
Germany,
the.! Socialists,
to. be
Germany,
Switzerland
and
hoped, nonetheless, that in
other European countries, para¬
some
feeling for the extraordi¬
doxically no longer espouse "so¬
nary. nature pf-what happened in
Germany ,in ■ the economic and cialization" and planned economy.
social: spheres, still remains; For ..Even hard-bitten interventionists,

CHARLES OLDENBUTTEL
(Former President Peoples

With the German example
before them, as well as that of

Ger¬

mans,

■*

G. RUSSELL CLARK
Chairman of the Board

give up the productive and stabi¬
lizing power of the market econ¬

extent

a

to

reparation

RESOURCES;
DEPOSITS

$ 19,000,000

RESERVES.

$

3,600,000

ac¬

PLUS

and

manifestation in

..Thus,

$242,000,000

..

CAPITAL FUNDS....

Over 900 Loyal Staff Members To Serve

characteristic syndrome

time.

$285,000,000

i

..

number .of
Western nations were quick to
<*v;:
follow in the immediate postwar
Germany's Recoveryperiod the bad example which
It is rather in a political-psy¬
Nazi Germany had
provided of
chological sense that the, truly an
inflationary-collectiVist policy.
"miraculous" aspect of the Ger¬
More particularly, the nations that
man case is manifested. The mira¬
occupied Germany and that con¬
cle is that the pursuit of market
trolled her destinies after;the war
economy and monetary discipline
sought t6 rbimpase this .system, on
was
possible in a country shat¬ their shattered
enemy. Their; much
tered " and
pulverized " by
the
.greater
hesitancy
in. followinggreatest calamity in its- history
Germany's new1 good example can
and in an age completely caught
be laid no doubt at' the' door : of
up in an inflationary-collectivist
mistrust, misunderstanding, and
"Wave of the" future" and hence
animosity. It so happened, in any
thoroughly
disposed
to
pursue
event, that the conquered, broken,
"leftist" economic goals;
and dismembered nation, v which
If Germans more recently have now. provided a good
example,
tended to take things -for granted -paradoxically, took- the lead on
and
to
forget
the
thoroughly the road to modern mass pros¬

You

a

,

.

15 conveniently located offices

in Greater New York

MANHATTAN

BROOKLYN

QUEENS

116 Fifth Avenue

1574 Pitkin Avenue

99-01

1400

Broadway
528* Broadway
115 Broadway,';

\

.

815

Broadway

781 Eastern

Parkway

465

318 Grand Street

BRONX

39 West Park

'

NASSAU COUNTY

352-East 149th Street

*

Queens Boulevard

Forest Hills

Kings Highway
880 Quincy Street,

.

.

-

>

14-15 122nd Street

College Point
59-01

Myrtle Avenue;

,

extraordinary emergence of their

perity

and

economic

cence.

To

system,

non

-

Germans

monetary

reconvales-

non-Germans this

was

have become more aware of it and

a

keenly concerned with it
than ever before. It may be said
that only now is the electrifying

first, because it was the conquered
country which in this case re¬
ceived the palm of economic vic-

are more




double

source

Avenue, Long Beach

of embitterment:

of North America
Member Federal Deposit

Insurance Corporation

.

,

ac¬

Continued

•

;

re¬

Alsogarays,

Erhard,

to

1 9 48.

it

that the majority of

appear

many

have

to

with market economy and mone¬

be feared that a great and magnetic force of the idea of
Germans have become ex¬ the social market economy exert¬
cessively blase about the extraor¬ ing its full influence in the rest
dinary economic progress which of the world. It is no exaggeration
to say that whereas in Germany
they have en¬
itself the market economy fre¬
joyed since

It

>!

countries

replace'the; mixture of. inflation* .#
ism and:- collectivism, which has**
all
but
ruined these
countries,

a

structed on the twin pillars of the

Colombia,

other

many

tion to the "neo-liberalism" which

coimtry like Spain there is grow-

ing

governments

Peru,

today paying increasing, atten¬

^easing the general level of out- would,
put and income.

and

Germany has made international¬

the weight

tionably in the direction of

j (Lewisburg, Pa.) .translated Professor Roepke's article.

are

.,-

another

The

success.

Argentina,

Chile

of the taking certain drastic economic
evidence and the sheer logic of reforms
aimed at restoring a
the situation, -worr the day
The; measure of competitiveness ttovther
events of the German case spoke economy,' the French succeeded in
tod clear end compelling a lan- converting their chronic balance
giiage to be misunderstood, with - Pf payments deficit into a sizable
the result that one country after surplus while simultaneously m-

or

.

Ludwig Erhard applied to faermany and which,

also, has profoundly influenced Western Europe's recovery, Patrick
M. Boarman,

with

anathema to the then

lead,

,

.

Switzerland, is widely known for his- exposition of nee-liberalism
which

.

..

Professor Roepke, q; member of .thes. ^

faculty of the Graduate- Institute of International Studies, Geneva,
•

success

Ultimately,

.

non-in-

a

and.

tactless

was

economic prospects and, by way of comparison, the
Other

-

nomic and

Enterprise System Survive?
One of the world's distinguished. economists assesses

market mechanism and

France's Recovery

secondly,
because.
particulartyv ~impr^siy0*-,|^jp)£-"
conquered country" achieved ample of this general development lasting

this

its

By Wilhelm Roepke

ahe^d ,of most of its con-

querors;

S

5

'

Ridgewood

'*

■.

[

6

The Commercial and Financial Chronicle

(2758)

fornia (1964-1988) general obliga¬
tion bonds the calendar of sealed

Exempt Bond Market

.

Thursday, June 14, 1962

,

Larger Issues Scheduled For Sale

,

i

^

bid offerings totals less than $350,-

,

"

.

..

.

■

V.,

■

.

,

'

•«.'

'

*

"

'

/

the following tabulations we list the bond issues of
thus far
scheduled
June
and
July.
With $1,000,000 or more for which specific sale dates have been set.'
credit abundantly available and
« C
v
June 14 (Thursday)
with the banks showing interest in
Buffalo, N.Y.
-9,663,000
1963-1976
11:00 a.m.
tax
exempts
at
the
cut
price California
(State of)
100,000,000
1964-1988
10:00 a.m.
levels that currently prevail, the
New Haven, Conn.
9,480,000
1964-1982
11:00 a.m.
state .and municipal bond market
Northfield-Macedonia Local School
;
/
000,000
through

By DONALD D. MACKEY

In

as;

•

.

-

—

New issues met with good recep¬
tion
and
the
dollar
markets
been dealing more cautiously in showed
some
modest improve- seems not in bad shape.
However, the periodic pressures
tax-exempt bonds with a resultant ment. More normally, as we are
fairly active but slightly lower all quite . aware, there is
little exerted on our. financial .markets
through the nation's incalculable
market
level. A week ago The homogeneity as between the stock
economic involve-,
Commercial and Financial Chron- market and the market for tax-r political, and
tele's yield Index averaged out at exempts. In the present maelstrom ments may at any time overpower
3 077%. Currently, the Index aver- of
politico - economic: < circum- the technical niceties of any par*
ages at a 3.096% yield. This small stances,
however, marketability ticular market. It seems to us that
the tax-exempt bond market may.
increase
in
yield
represents
a per. se becomes variously limited
selloff of about a
quarter of a to the extent that but .few; are be subject to not infrequent set¬
backs in the months, ahead, 'from
point. This computation is aver- able or willing to discriminate ina level not far* from the current
aged from a preselected list of vestmentwise or in any way exerone.
20-year high grade general obli- cise discernment. .
....
Recent Awards
gation bond offerings.
This week, on Tuesday and as
reporting our institutions and investors generally have
Since

last

■

.

—

.

.

.

District, Ohio
A-——.—4■
Shore Regional High S. D., N. £— :
June 15
Louisiana. State

:

the
10

The

Higher From
Basis

30

to

recent

market

performed

have

stocks

yesterday,

This

shown

vulnerability
and the averages are off substan-

Points

issue

tially. Because of the involvement,
state and municipal bond markets
have reflected investor caution
involved all of the high priced and dollar bond quotations, have
state and municipal bond issues been affected to a slight .degree,
accumulated prior to the break. The new issue bidding ideas have

market

touched off during the stock market break in late May, has now

These

syndicates have

terminated

bonds
duced

these

and

also

been

now

the

been

in

yields from

10 to

depending
quality.

30

Demand

for

this

However, from

Taken

generally

as

vestors.

First
at

National

2.844%

a

runner

tories and

are

bid

tional Bank

to

*

during the
past few weeks concurrently with
a
moderately heavy new issue
calendar.

The

calendar,

too,

been
rate

relatively

been

seen

better

Under Influence

st

*--?i

o;

than

has

in months.
of

wether

continues

terday's

.

on

municipal
stock

the

daily

bond

market

to

be

the

little

bell-

offerings

more

than

W.

close

total

is

market.

As

yesbut

Another

&

&

bid

MARKET ON REPRESENTATIVE
SERIAL ISSUES

of

100.06

resulting in

California (State)
♦Connecticut (State)

Maturity

1982

3.40%

Co.

of

1981-1982

3.25%
3.15%

3.10%

.(State)

.....

1981-1982
1981-1982

214 %

a

SlfwJ

3:15%

five

the

bonds

reoffered.

issues

account
-

.

3.05%

Very

3.30%
3.00%

1981

>.>3.15%

3.00%

3.35%

3.25%

the

.

1980

3.30%. 3.20%

by

100.43

availability.

First

for

National

2.90%

a

Bank

coupon.,

by .the

Morgan

major

t

June 28

"B"

amounted to
We
on

iv

11 be

this

pleased

to

send you

to
our

extraordinary Tax-Free Bond

Special Report
upon

press

New

remains in

request.

Victoria, Texas
general obligation
1984)
The

Tripp &

net

Iax-ixempt

Richmond Exempted

School District^ Ohio

WALL

sold

bid,

was

cost
a

of

3.202%

made

by

3:188%.

bonds

STREET, NEW YORK 5, N. Y.

of Regents

———————

•

.

\!

......

...

Co.,

and

Francis

^

on page

62

1964-2001

11:00

a.m.

a.m.

1963-1982 .11:00

.

.

.

a.m.

-——

1975-1992

10:00

a.m.
—

1963-1978

2:00p.m.

\

„

.

(

10:00

4,859,000,

a.m.

—

4,735,000
V V
1,220,000

1963-1991

8:00 p.m.

1966-1982

2:00 p.m.

2,500,000
1,600,000
1,800,000
1,950,000

1963-1984
1963-1992
1963-1980

2,115,000

1963-1984

Noon
7:30 p m.
8:00 p.m.
2:00 p.m.
7:30p.m.

./•

.

'

t

10:00
10:00

1964-2001

•

a.m.
a.m.

^
—-

———-

;

2:30

1963-1992

July 12 (Thursday)

■.

.

2,400,000

p.m.

,•

—

July 16 (Monday)
^

Cascade
v

Co.
-

♦

No.

HSD

:

•

1-A, Mont. f
v

y

State College, Board of : %'v
' "
Trustees, State College; Ark.—__ - 1,587,000
Cook County, New Trier Township
; High Sch. Dist. No. 203, 111
1,825,000

.

r

s

i.---

v

.

San

/ :■>

:

p.m.

.y;■"

;

1964-2001

-

2:00

p.m.

„

.

—

—

2,500,000

Ju^Y ^ (Monday)
1,300,000

July 24 (Tuesday)

Anchorage Indep. S. D., Alaska__J
*

8:00

-

.

Lafayette, La.

^

>

3,000,000

July 17 (Tuesday)

Arkansas

.

I.

Continued

10:00

5,000,000

Washington Local Sch. Dist., Ohio

Pierce & Co., First Southwest
Co.,
-Mercantile National Bank of Dal¬

Bache &

1965-1992

5,000.000

„

'
Savings Bank and Asso¬ ,yy';ciates. Other members of the win- -Rocky River, Ohio—
ning
syndicate
are
Rauscher,

las,

1963-2002; '2:00 p.m.

^

1,700,000

-Univ. Of Texas, Board

The

net";interest
the Harris

—

Noon '

Village

Dist., N/J.—
Indep. S. D., Texas___ '
Richland, Wash.———*
St.
Joseph's College, Renssalaer,

$5,000,000

bonds
(1963to the syndicate headed
by
Manhattan Bank at .a

interest

cost,

Telephone: HAnover 2-5252




,

—

go

$2,300,000
;
..." \

a.m.

11:00a.m.

1962-2001

(Thursday)

Port Arthur

Trust and

.

40

...

p.m.

y

Point Pleasant Sch.

Chase

second

co., inc.

of

account.',

.

we

3:30
11:00

/___

<18,800,000

Orange Indep. Sch. Dist., Texas— >/

Guaranty

$7,000,000. As

balance

a

r

1963-1992"

:

.

Hutton & Co. The
securities were
offered at prices, to
yield from
1.50% to 3.40% .and initial sales

4%-5% Revenue Bonds

,

'*/- 3,634,000

Agricultural & Mechanical College
of Texas, College Station. Texas
Corning City Sch. Dist., N. Y
*
Cranford Township S. D., N. J._._
Forrest County, E. Forrest Utility
District, Miss

The

the

8:00 p.m.

y

-

of

members .of

.

Jnn® 27 (Wednesday)

-

.

Boston Extension

p.m.

1963-1992
1963-1982

Indep. Sch. Dist,, Texas—.

winning group include Drexel &
Co.,
The
Philadelphia National
July 10 (Tuesday)
Bank, Stroud & Co., National State -Bloomington Ind. SD
#271j Minn. >
1,410,000
Bank
of,
Newark,, New Jersey, Los Angeles Sch. Dists., Calif.__y—/ 21,000,000
Trust Co. of
Georgia, and E., F. Memphis, Tenn.
23,000,000

Massachusetts Turnpike
Authority
Series

(Tuesday)
! '1,300,900

—

Indiana

Other

1963-1997

__

Trust Co. account. Vv

plus CAPITAL GAIN

3,500,000

>

1,475,000
Dallas Ind. S. D.,.Tex.
*10,000,000
Georgia State Highway. Auth., Ga. ; 11,600,000
Houston, Texas
'
4,000,000
Suffolk County, N. Y
: 8,217,000
Winter Haven, Fla.__,
1,100,000

compared favorably
with the second bid of 100.33
also
for a 2.90%
coupon
which was
made

1-.

•

winning, bid

TAX-FREE INCOME

Ill.___

Baltimore County, Md.-—
Coeymans, New Scotland, Bethlehem etc.; Central S. D., N. Y.__

Chicago and The First Boston
Corp. the successful, bidder
at

3.30%

the-

Heights,

.

managed»jointly

3.40%

.

.„

12,500,000
4,400,000
Pennsylvania State PS -Bldg. Auth. " 14,150,000
Wauwatosa, Wis.
2,840,000
Wis. State Agencies Bldg. Corp.__
13,185,000

bidding appeared for

group

(Thursday)

Minnesota State Bd. of Investment J

$10,796,000 Monroe County ^(Roch¬
ester),
New
York
public :• im¬
provement
(1963 - 1991) * bonds,
with

9:30am.

June 25 (Monday)

Houston

and

3.40%

1981.

3%

2:00 p.m.

Haverhill, Mass.

>

1981

'

2:00

1983-1992

selling at public sale.

close

a.m.

!

Brookhaven U. F. S. D. No. 2, N. Y.

were

3.15%

^June 13, 1962 Index=3.096%
•No apparent

of

1981

-31/4%

New York, iirv
N. Y

3.00%

11:00

1965-1992

1983-1990

June 26

coupon,

1981-1982

—

Cincinnati, Ohio (U. T.)___._......3%%
Philadelphia, Pa
31/2%

3.15%

1981-1982

[

x

„

—

Noon

y;y"v:

Friday and Monday were devoid
important new issues bht
Tuesday was a hectic day with

3.00%

•

1963-1982

Arlington

of any

2.70%

1981-1982

2.90%

Housing Auth., (N.Y., N.Y.)— 3%%
Los Angeles, Calif
3%%
Baltimore, Md
31/4%

3.15%
2.85%

not

were

3.05%

1974-1975

All

.2,500,000

Noon

1964-1983

>

a.m.

,2:00 p.m.
' 2:00 p.m.

1963-1982

In¬

net interest cost of

taken for the bank's

3.30%

3%%

Jersey Highway Auth., Gtd._ 3%
;
New York State
3V4%(
♦Pennsylvania (State)
3%%
New

2.265%.

Asked

3%%

New

Delaware

Bid

;

11:00

,

Mexico

for

a

1965-1932
1963-1991"

;

9,000,000
4,350,000
,2,500,000
1,100,000

•*

—

'

Rate

:

(Wednesday)

June 21

municipal
bond market factor involves the
(1963-1967) bonds
new issue calendar. After today's' which were bought by the First
sale of $100,000,000 State of Calk- National Bank of Chicago on its

out late last
week,
municipal bond market slowly
furtively regained composure,

t

j

Harwich, Mass.
.1,400,000
1963-1982; 11:00 a.m.
Indianapolis Sanitary District, Ind.
8,100,000 ,1964-1993
10:00 a.m.
Islip, Union Free S, D. No. 9, N. Y. - 2,705,000
1963-1992 '
2:00 p.m.
Litchfield Indep. SD #485, Minn.1,390,000
Macon, Ga.
•
i:„-7,500,0e0
1965-1992
11:00 a.m.
Nazareth Area Sch. Authority, Pa.
1,300,000

•Co.v,--Shearsoh,

Trust

querque, New
school district

-

*

$465,000.
Thursday's pother sale of note
consisted - of
$3,200,000 ; Albu¬

tax-exempt

'

.

.—

a.m.

1983-1982- - 10.00 a.m;
1962-1991

i

—,

10:00

12:30 p.m.

6,929,000

balance is

favorable

5:00p.m.

3,945,000
Greece Central St D. No. 1, N. Y. \ 2,960,000
Huntington Central SD #6, N. Y. r 1,250,000

Co. and Fletcher Na¬
&

p.m.

,8:15p.m«.

;

^1,465,000

Alexandria, Va.

taken for bank portfolio
by mem¬
bers of the syndicate.;Press time

Light Calendar

the

temporarily

Morton

7:30

'

1965-2002
1963-1972

3,200,000

Alaska "(State- of)——:

a

dianapolis. Only seven maturities
of this high grade
offering were
publicly offered, the rest being

course of the

was

H.

1

^

June 20

made

group.

p.m.

8:00 p.m.

.1964-1990

Comm.,

Tuscaloosa County, Ala.;

York, Buffalo, A. G. Becker & Co.,

normal amount

a

was

7:30

"

(Tuesday) Ifes

—

Orangeburg, S. C
St. Charles, Mo.

Marine Trust Co. of Western New

($522,691,000).

straightened
the
and

a

!

1,05.Q,OQO

College.—;

Cty. Metropolitan
——'

Chicago

designating

/

1963-1981

1,756,000
1963-1982
1,204,000 .'1963-1982

.

Honolulu, Hawaii (City & County)
Hbrnell' City; Sch. Dist., ■N,'Y<—

Other major members of the
winning
syndicate
include
The
Philadelphia National Bank, The

of

?icl>al, offerings portrays it,

t!

Superficially, at least, the stock
market

currently in

condition

in¬

a.m.

;i,250,000/, 1964T1980

Florida

by the Chemical Bank New York
Trust Co.

liquidity.*
Blue List of current mu¬

As the

the

Set

k

normal

of

2.895% net interest cost

Hammill

trimmed

——

Teachers

State

"

net interest cost. The

up

-

Bank

1,625,000

?

Island, 111

Dade

was

Last

Moreover, most dealers have
drastically reduced their inven-

drastically

Ball

10:00

V:

v
of Texas'
.1,425,000
Albany, N. Y#—————— y' 2,643,000

past week

'11:00 a.m.r

1965-2002

Agricultural & Mechanical College

Thursday (June 1)
$4,080,000- Marion County (Indian¬
apolis),
Ind.
; various
purpose
(1963-1982) bonds were awarded
to the syndicate headed
by the

a

1,950,000

"

June 19

general

p.m.

(Monday)

Thompson School District, Colo.
Maryville, Mo.

attracted

group

well disposed of with new
issues moving out of account at a

price
there

a

8:00

1,600,000 ' 1964-2001
-

(

Rock

1963-1985

,1:00 p.m.

Education

Forks, N. D.———g-

Oak Park, 111.

1963-1982

2,218,000

Larimer, Weld & Boulder Counties

$130,000,00b.

a meager

a

has

as

is ample evidence that the float of
bonds
among
dealers has been

of

which

the total
well! received by

as

improved somewhat during the
past week. Yields are better in a
general way. Twenty-year high
grade general obligation bonds
with normal coupons can now be
bought to yield as much as 3.25%.
A few weeks back this category
was pushing through 3.00%.

inventory has been good

Grand

large

one

during the

amounted to

technical viewpoint the posture
of the
taxexempt bond market has
been

and

reduced

lowered

flotations

nature

issues sold

pressures.

basis points

maturity

upon

variously

no

of

June 18

competitive bidding. The total of

dealers involved in both stock and
bond markets have cautiously re¬
acted to the various financial

remaining
variously reprice. The pressure of
offerings has increased
have

been

had

Bd.

.

.

(Friday)

(Baton Rouge)

importance but involved

numerous

selloff,

abrupt

week

of

■

-

1,200,000

Univ. of Kansas, Lawrence, Kansas,

-

Yields

r

>

.1963-1987
.

10:00

4,250,000

July 31 (Tuesday)

Diego Unified Sch. Dist., Calif.

14,827,000

Noon

1964-1983

a.m.

Volume 195

Number 6168

.

„

The Commercial and Financial Chronicle

*

(2759)
1

1

T~\

"I.

•

i

O

1

>

1

•

Gold Production Subsidy

in the

world's

monetary

=

system,

mittee may wish to pursue.

I can
full assurance, however,
based upon intimate contacts with

give

Opposed By the Treasury
Below

is

the

text

of

Pictures In This Issue

you

•financial officials

of

most

of

the

livelihood, but also that of all the.
by the Honorable Robert V.Roosa, rest of us, depends.
; :. - > / /;
by S J.
44
be
Under Secretary of the Treasury
There is no compensating adregarded as synonymous with a.
for Monetary Affair* before the vantage in the
promise that sub-"declaration of intent to devalueSubcommittee on Minerals, Macesidies would'produce a. vast en- the

.Day of the Bond Club

„

rials

dollar of the United

and Fuels

tenor

of the Senate In- largement: of the existing "gold*
Insular Affairs Comstock.
The fact is that even if

and

mittee

S.

on

J.

Res.

44.

A

For these reasons,' the

Department

Joint

is

Annual Field

New

Treasury'r

productive capacity could achieve Resolution.
"><>
to Encourage the Disthe most optimistic estimate
of
«:
' v.. * - >
'
"
Development and Produc- the Department of
Interior,;
w p
cfr,w Or^nc
Domestic Gold on June 8, American facilities - could not
iess

Chairman

Members

and

its relation

to

single

Joint

March

this

offset

Subcom¬

year, it could not begin to
the
losses
to
the
world..

t? -J5

^erms'^

+sim/£

add

an

dustry

the

and

such

non¬

governmental
witnesses
o n
a

J.

Res.

would

be

nrm*

construed

world

dence that devaluation

evi¬

as

;

r

/

ther

discovery, de¬
velopment and

any

relating

Robert V. Roosa

aspects

to

the

business

question

of this

function

firm

gold

of

name

fices at

offices

Richard

C.

H.

Briddell

&

Ward

Briddell

partnership, with of-

a

934

West Main

at

CITY

Riohnn

...

Rr

Street, to

Okl

H-?rt

business.

Richard D. Hart,

a

MAHOPAC

N

Y—Nathan Salin-

ger is conducting

under

ness

Salinger

a

the

securities busifirm

Investment

J.

Barron

and

the

Officers

are

-

Parker, President and George

P.

Bishop,

urer.

94-14

under

were

Mr.

Secretary
Hart

both

Bennett Forms Co.

Chairman; Byron

and

and
Tvrr

Treas¬

SPRINGFIELD, Mass.

—
Bernard
Bennett is engaging in a securities

-pJvuIr business from offices

at 182 Day¬

ton Street under the firm

formerly with Francis

I. du Pont & Company.

B. Bennett & Co.

which

has

of

these

This is

formerly with Meadows & Co.

carefully studied
by the Treasury's Office of Do-*
bv other

NEW ISSUE

June 13, 1962

Operations

Treasury officials.

-

.

i

'It.is my understanding that S. J.
Res. 44 would authorize the Secre¬
tary
and

offer of these securities for sale. The offer is made only by the Prospectus,

hearings,

been

mestic Gold and Silver
and

not an

;!.!

i<vi

tO

') i'J

of the

Interior, under rules
regulations prescribed by him,

$25,000,000

to make incentive payments to
pro¬
ducers ■ of
gold
mined
in
the

United

States, its territorial

sessions

the Commonwealth of
Rico. The amount of

Puerto
such

pos-

-

Container Corporation

or

"

any

payment

-

would

be

deter¬

mined by the

Secretary of the In¬
terior, but would not in any case//;
exceed

$35

amount

an

would,

addition

to

$35

of. course,

ounce

per

the

I

be
price

official

which

?

has

-

of America

Any such

ounce.

an

of

since

-

1934

been
paid on delivery of
to the Treasury for acquisi¬
tion by the United States.
In
response
to a letter from
Senator Anderson, Chairman of

;

gold

the Committee

sular

4.40% Sinking Fund Debentures due 1987

Interior and In¬

Affairs,;, the. Treasury. De¬

partment
that

on

stated

it opposed

over

a

year

Dated

ago

June t, 1987

the enactment of

S. J. Res. 44. After study of the
March hearings, further discussion
with
interested
public
officials
and with representatives of the

Price 100% and accrued interest

gold mining industry, and careful

t

Due

June 1, 1962

re-examination of the role of gold

,

in

our
monetary
system^, the Treasury
Department -has
not .v"
changed its view. •
• \
- •
.

.

The

usual

reasons

for

urging

Copies of the Prospectus

' •

gold

subsidies in other countries,
or for urging subsidies
to other
industries in this country, are not

\
•

applicable
States.

to

This

simply

gold

in

cannot

the

a

case

announcement

the

undersigned\

as

metal. The dollar is

-

rency. -

..

a

unique

Ours is the only

%
■■

The First Boston
•

j

keep

a

or

>

few people to
obtain jobs—desirable as

?.•

is—would, instead of helping
in the gold mining industry, disrupt the monetary svstem
upon
which not only their own




.

Kuhn, Loeb & Co.

•j

-•••.•

»

Blyth & Co., Inc.

j

j

■(

Incorporated

Drexel & Co.

Eastman Dillon, Union Securities & Co.

V

Harriman Ripley & Co.
./

:■%

Incorporated

Glore, Forgan & Co.
......

'

/

.

Merrill Lynch, Pierce, Fenner & Smith

I

Incorporated

Stone & Webster Securities Corporation

.

"

Lehman Brothers

...

Incorporated

"

White, Weld & Co.

Dean Witter & Co.

.

J Hemphill, Noyes & Co.

Hornblower & Weeks

W» E. Hutton & Co.

-

F.S.Moseley & Co. ; Paine,Webber, Jackson & Curtis ] A. C. Allyn & Co.
Lee

Higginson Corporation

^

V

•

-'

•

"

'

'

.

Smith, Barney & Co.
.

i

•

;

>

,

relatively

those

Corporation
-•••

Goldman, Sachs & Co.

that
v

•* -

Incorporated

"

assist

;

••

A. G. Becker & Co.

-of the entire Free World is hinged 1
I to the interconvertibility * which'
t
we" maintain
between
gold' "and v
rdollars at that price. Any form of
•:
subsidy to American; gold produc-n/
tion would impair that relationship. A compassionate effort to
,

•-

~

;

r

•

•:

currency

maintains the link between
money and gold;, we do that by
standing ready to purchase and
sell gold at the fixed price of $35
per ounce.
The monetary system

•

lawfully offer these securities in', such State.

Kidder, Peabody & Co.

cur--

that

|

may

viewed

'

r

be obtained in any State in which this
only such of the underwriters, including

may

is circulatedfrom

of

marginal or /
."depressed industry 'seeking relief/
from the compelling pressures of
•. economic change. Gold is a unique
as

•

United

be

..

-

v

•

k•/ '

/,

•' /v

-

'

McDonald & Company
]

'

■

'

name

Equitable Securities Corporation
Shields & Company
Incorporated

of

Mr. Bennett was

of

record

Marvin

Vine

gold.
Senator Carroll,
the Chairman of the Subcommit¬

of

of

Mail

address is P. O. Box-912, Route 6

domestic

tee, has thoughtfully supplied the
Treasury Department with a copy

name

Co

_

*

Tnr>

D.

the
of Packer St Company.
Avenue,

—

Bilsky have been admitted to lim¬
farker> Bishop & Hart, Inc., has ited partnership in John Schuss
been f°rmed with offices at 22 & Company, 67 Broad St., N. Y. C.
par^ Avenue, to engage in a securities

from

Sixty-ninth

Company,

parirPr

S +2'
of the

HILLS, N. Y.—Benjamin
is conducting a securities

Packer

I would be glad to discuss fur¬

the

formed

OKLAHOMA

'?,.-'■/■/.•;

\

Md.

William

Schuss Admits Partners

* Qi,Wv

principal

a

have

and

Arthur

Packer Opens Office

under /

was

*

is

Ward

Opens

FOREST

way.

resolution to

production

action

la

Greenberg

Salinger Forms Co.

...........

CRISFIELD,

engage in a securities business.

,A

ronrt

unprecedented subsidy to
$35 price for gold,

by the rest of the

44,

encourage

.

in today's Pictorial
Supplement.

Form Ward & Briddell

:

rities business from offices at 5750

official

S.

.

Union Securities

United States Government should

a

number of in-

other

William

—-

of

economy
that would be created
mjami, Fla. — Union Securities
by devaluation of the dollar. And.
corp0ration is conducting a secu-

15,

mittee heard

to -our^ LONG -BEACH, Calif.

add

the-amount

.

Resolution 44.
On

century

a

production

gold

proposed

Senate

than

R- Stow, Jr., is conducting a segold contemplated by the present- purities .business from offices atf
terms of S. J. Res. 44. But even 853 Atlantic Avenue. He was forif that, total could by some al- merly a
principal of :Stow &
chemy
be
produced
within
a' Rethenbush.

of

Subcommittee, i appreciate- this
opportunity to discuss with you
the important subject of gold and
the

^' ^ww upcns

in;

1962.

appear

:

•

Mr.

York, and the 29th

this-

to

Resolution
covery,
tion of

York,

of New

Day of the Municipal Bond Club of

-

States.

opposed

■

CANDID PHOTOS taken at the
38th Annual Field

{hat*qfrS^of^tht>°kinrf6po^twl?'
tggjj
r!s.
^uld

statement

a

7

The Commercial and Financial Chronicle

tailed

INVESTMENT LITERATURE

RECOMMENDATIONS
THAT

UNDERSTOOD

IS

.

INTERESTED

SEND

TO

issues

selected

Grumman Aircraft, Lock¬
heed Aircraft, McDonnell Aircraft,
Corp.,

and

American Aviation

Corp.—H. Hentz & Co.,

Northrop

Y.
of

Street, New York 5, N.
Also available is. a discussion
Railroad Bonds for income.
72 Wall

Automobile Industry

New

way,

—

& McKinnon,

Thomson

is

available

Review —
2 Broad¬

York 4, N. Y. Also
a
discussion of the

Mines—Bulletin—
Wills, Bickle & Co., Ltd., 44 King
Street, West, Toronto 1, Ont., Can.
Market

Canadian

Review

—

—

Ltd.,
Street, Toronto 1, Ont.,

Equitable Securities Canada
60 Yonge

N. Y.

;;

Japanese Market

Convertible

Bonds

Report

—

Debentures—Bulletin

—Paine, Webber, Jackson & Cur¬
tis, 25 Broad Street, New York 4,
N. Y. Also available are data on
General Public Utilities, Raytheon

Freight Co.

S.

U.

and

Company

of

New

Inc., Ill Broadway, New
York 6, N. Y. Also available are
comments on Dai Nippon Printing
Ltd., Toppan Printing Co. Ltd.
and Tosho Insatsu Printing Co.,
Co.

Ltd.

Industry

—

Review—Hemp-

bill, Noyes & Co.„ 8 Hanover St.,
New York 4, N. Y. Also available
are memoranda on Houston Corp.

appraisal of

and Northrop, and an

—

Discussion

& Co., Inc.,

—

David L.

89 Broad St.,

10, Mass.

Economy
and
Selected
Stocks—Study—Halle & Stieglitz,
52 Wall Street, New York 5, N. Y.

Market,

Massachusetts Turnpike & Boston

Traffic and earnings

Extension

—

study

John

Nuveen & Co., 5
Square, New York 4,

—

Hanover

N.

Y.

Also

available

is

a

those

for

reference

the

of

securities

in

Analysis

Government, Gov¬
ernmental Credit Agencies, Inter¬
national Bank for Reconstruction
United

States

and Development

First Boston

—

Place

20 Exchange
5, N. Y.

Corporation,
New York

onto

Study and Review—W. D.
244 Bay Street, Tor¬

1, Ont., Canada.

West

Growing

28 page brochure

—

re¬

on

Utah
Light Co., D. H. White,
Manager, Sales & Marketing, Dept.
B5, Salt Lake City 10, Utah.
of

sources

served

area

•—

Power &

Kingdom—Common Mar¬

United

ket Negotiations

—

Study—Green-

d'Armes,

Inc., 507 Place
Montreal, Que., Canada.

Electric Utilities

Annual

—

com¬

pendium of data on 95 companies
—Carl M. Loeb, Rhoades & Co.,
42 Wall Street, New York 5, N. Y.
Expanding Profit Margins—List of
stocks
which may be recovery
&

Carreau

—

Co.,

115

Broadway, New York 6, N. Y.
•'

.

•.

>'

#

"

'

Federal

■"

'

■

'.

' •*

Administration

Housing

Debentures—Bulletin—New
Hanseatic

Corp.,

New York

York

5, N. Y.

Broadway,

120

Gold Mining Shares

—

Memoran¬

—

Analysis—Orvis Brothers & Co.,
15 Broad Street, New York 5, N. Y.
showing

an

up-to-date

between

son

used

stocks

Averages
counter

the

the

and

listed

the

compari-:
industrial

Dow-Jones

the

in

% Folder

35

over-the-

industrial stocks

National

Quotation

used

in

Bureau

investors in Puerto Rican Securi¬
ties

First

P.

O.

—

Economic Conditions

—

—

Bank

Rico—Quarterly report to
Government Development

for Puerto

Puerto

Rico, San Juan,

Rico.

Quality Issues in Buying Range—
List

—

Hornblower

&

Weeks, 1

—

Re¬

Rhoades

Loeb,

&

Co., 42 Wall Street, New York 5,
N. Y. Also available are comments

Chemical

Kawecki

on

National

Federal
ciation

Co.,

&

New York

Dome

Mortgage Asso¬

Analysis

—

and

'

—

120

Emanuel,:
Broadway,

5, N. Y.

Frank Paxton Lumber Company—

Stern Brothers & Co.,
1009-15 Baltimore Avenue, Kan¬

Analysis
sas

—

Corp.

Geophysics

America

of

—

Bulletin—Reubin Rose & Co., Inc.,
115

Broadway, New York 6, N. Y.

Also

available

comments

are

Howard Johnson

on

Company.

is

discussion

a

of

Analysis

—

in¬

teresting yields—Sartorius & Co.,
Broadway, New York 6, N. Y.
*

*

*

Air

System, Inc.

9, Mass.

Also available are com¬
Gardner Denver, Micro¬

on

Associates

wave

Locust

S. Lines.

U.

and

M.

Salle

Benson

Manufacturing Company—

Analysis—S. D. Fuller & Co., 26
Broadway, New York 4, N. Y.
Hills Power & Light Co.—

Cohen, Simonson & Co., 25 Broad
Street, New York 4, N. Y. Also
available

memoranda

are

on

Mer¬

chants Fast Motor Lines, Sunbeam,
Beatrice Foods, Briggs &

Stratton

of

Hawaii,
3200, Honolulu 1,

Hawaii.

Chase Manhattan Plaza, New York

5, N. Y. Also available are com¬
on F. W. Woolworth, Amer¬

ments

Report—Iowa Power & Light Co.,
Des Moines 3, Iowa.
Kerr

Amott,

&

Baker
New

available

Co.,

Inc.,1 150
York! 38, N. Y.

is

memorandum

a

Hammermill Paper.'

Instru¬

ments and Mergenthaler Linotype
Company.

tenden, Podesta & Miller, La SalleJackson Building, Chicago 4, 111.

Adams

&

New York

Peck,

Broadway,

120

5, N. Y.

Firm

Drug

Co.

—

Bulletin

—

Mitchum, Jones & Templeton, Inc.,
650
South
Spring
Street,
Los

Trading Markets in—

&

(a) Operating Utilities

5, N. Y. Also available is
on

Southern

a

report

Gas

Natural

and

a

list of interesting Convertible De¬

bentures.

...

;

v

Abraham

(b) Natural Gas Companies

New York

&

Co.,

—

Broadway,

5, N. Y.

Co.,

Inc.—Analysis

Moseley & Co., 50 Congress

Street;? Boston 2, Mass.
Radio

Corporation of

i

;.

Analysis—Laird, Bissell & Meeds,
120 Broadway; New York 5, N. Y.
neering

Manufacturing

&

Co.,

Miami 32,

W.

P.

Engi¬

&

Memorandum—Givens
Inc., du Pont Building,

—

Fla.

Broadway,

Memorandum

—

Brooks

Co.,

&

York

New

N.

5,

For Banks,

available

are

data

Textron and

on

Extension—Special Report

—Tripp & Co., Inc., 40 Wall St.,
New York 5, N. Y.
National Rolling Mills Co.—Mem¬
—

Woodcock, Moyer,

South Broad

Fricks & French, 123

Street, Philadelphia 9, Pa.

are

Y.
of

Light

Illinois

Central

N.

reviews

York

Broadway, New
available

5,

Company

and Burroughs Corporation.
—

Discussion in current issue of "In¬
vestors

Reader"

Fenner &

—

Systems,

ManufacturingInc.—Analysis—Stifel, Nicolaus & Co., Inc., 105 West Adams
Street, Chicago 3, 111.
Rucker Company—Analysis—First
California
Company,
Inc.,
300
Montgomery Street, San Francisco
St. Clair Specialty

Co.,

20, Calif.
Trans-Air System,

Company—Review
L. F. Rothschild & Co., 120
Paper

Also

Lynch Communications
Glen-Gery Shale Rock
and Colorite Plastics.

terials,

Merrill Lynch,

Smith Inc., 70

Van Alstyne,

Inc.—Report-

Noel & Co., 40 Wall

Street, New York, 5, N. Y.
Wabash Fire & Casualty Insurance
— Francis X.
Walnut
Street
Building, Philadelphia 2, Pa.
; :
;

Company

Martinez,
Xerox

—

—

Bulletin

1500

-

Comments

—

Stearns &

Co., 80 Pine Street, New York 5,
N. Y. Also available are comments
on Cenoo Instruments and Stauffer

74

Sold

Trinity Place, New York 6, N. Y.

HAnover 2-2400




WANTED

Quoted

Vandea Broeck, Lieber k Co.
/

Security Dealers Association

>

SITUATION

Foreign Securities
Bought

Members New York

Y.

Brokers and Dealers

& Distribution

Troster,Singer & Co.

—

120

Inc.,

Chemical.

Transmission, Production

A".

.

America-—

American Construction & Ma¬

Pierce,

120

5, N. Y.

80 Pine Street,

&

Rexach Construction, British

Peoples Gas Light & Coke Co.

j

Colgate Palmolive Co.—Survey

Paul, Inc.—Memorandum^:

Estabrook

Aircraft—Data—Breg-

Corp.—Report—Reynolds

Co., 120 Broadway, New York

Industries. '■

Also available are memoranda on

man,

—

Carrier

Bobbie

Corp.,

Cement

In¬

Corp.,

Cummings & Co.; 4 Albany
Street, New York 6, N. Y. Also

Lockheed

Oxford

Angeles 14, Calif.

Litton

Manville

Brooks and Thomas

Renaire Foods

orandum

Brunswig

Corp.,

Johns

Redman

•

Inc.—Analysis—Crut-

Littelfuse,

Boston

Texas

Service

—F. S.

>'

Broadway,
on

Linen

Peter

National

Products,

Avon

dustries,

Warner

Co., Borg

Corp.,

Purolator Products

New

Kerr-McGee Oil—Memorandum—

Also

Woolworth

4,

Broadway,

;;C

discus¬

sions of Norfolk & Western, F. W.

York

50

5, N. Y.

York

New

Street,

Also in the same issue are

New York

U. S. Industries.

on

graduating 22nd in his class. He
report
to
Nuclear Power
School at Mare Island, California,
following leave.

&

Massachusetts Turnpike Authority

comments

upon

will

McGee—Report—Purcell

AnnualReport — Black Hills
Power & Light Co., 621 Sixth St.,
Rapid City, S. Dak.

are

For banks, brokers and financial institutions

Ensign

land, last Wednesday. Ensign
Reilly received a Bachelor of Sci¬
ence
degree
"with distinction"

American

Co.—Annual

Iowa Power & Light

Herzfeld & Stern, 30 Broad Street,
New York 4, N. Y. Also available

Box

Bank

an

graduation from the United States
Naval Academy, Annapolis, Mary¬

Pine
—

Borg Warner Corp.—Discussion—

National

Representative,

commissioned

Street, Chicago 3,

Litton Industries—Memorandum—

Y.

Black

Philadelphia

Street,

Illinois Central—Memorandum

N.Y.

N.

Inc.,

Southern

Chronicle's

Midwestern

111.

Co.,

120 Broadway, New York 5,

Reilly, son of Vincent

and

Byllesby & Co., Inc.,435

South La

Kidder & Co.,

Inc., 1 Wall Street,
Y.orkjj, N. Y., Also,available

M.

the

Hugoton Gas Trust Units—Report

American Can Co.—Report—A. M.

Inc.,

Co.,

and Standard Oil of California.

Co., Inc., 85 State Street, Boston

ments

&

Stores—Discussion—Colby

Allied
&

Inc.—Report

—

Taggart

2, Pa.
—H.

Yield—List of securities with
39

1516

A.

Thomas

Reilly,
was

City 5, Mo.

Charles

Averages, both as to yield and New
performance over- a .23-, ;hre comments on F. W-r Woolworth
period g? National Quotation Co.- and Texas Utilities Co. •
Bureau, * Inc., 46 Front Street, Astrodata^Membra
New York 4, N. Y.
bery, Marache &Xo., 67 Wall St.,
Perspective On The Market—Re¬ New York 5, N. Y.
view—Hirsch & Co., 25 Broad St.,
Bell Electronic Corp.—Bulletin—
New York 4, N. Y.
De
Witt
Conklin
Organization,

Avenue, New York 22, N. Y.

Hawaii

M.

view—Carl

market

dum—Evans & Co., Inc., 300 Park

Auchincloss, Parker & Redpath,
2 Broadway, New York 4, N. Y.

.

Falconbridge Nickel Mines

shelter—
Shields & Company, 44 Wall St.,
New York 5, N. Y. Also available
tax

a

year

Puerto

Growth Opportunities—Bulletin—

Co., 80 Pine Street, New York

Petroleums.

—Flomenhaft, Seidler & Co., Inc.,
63 Wall Street, New York 5, N. Y.
Also available is a report on Trans

Industry

&

5, N. Y.

Company

ter of

Gas Pipeline

White

Cott Bottling Co. of New England:

Hoover

Toll

1962.

Seal

&

and

—Memorandum—R. W. Pressprich-

Britalta

ABC Air Freight Co.

Natural

Inc.,

Utility Stocks—Comment on eight

offering

Anchors Aweigh!

— Annett Partners
Ltd.,
Street, Toronto, Ont., Can.

Deetjen
the

in

Chest

Treasure

MCA

Petroleum.

Latimer Ltd.,

issues

Over-the -Counter Index

the Stock Market.

leaders

1962

Inc.

220 Bay

Highway report for the first quar¬
Drug

Thursday, June 14,

Consolidated Mic Mac Oils Ltd.—

United States
edition — a

shields

Market

—

4, N. Y.

Convertible

Review—

Co.

Securities

Yamaichi

Boston

50 Broadway, New

Gruntal & Co.,

—

Stores,

appear

New

of

&

Crown Cork

on

Company,

1962

—

of

interested

Tin—A

Market—Review—T h e
Co., Ltd., 149
Brdadway, New York 6, N. Y.
Securities

Daiwa

Babson

Canada.

York

Chemical Industry —
Analysis—Nomura Securities Co.,
Ltd., 61 Broadway, New York 6,
Japanese

York,

Gold

Canadian

J.'.-7;'''N,:1

Japanese

Ga§ Industry.

Natural

Stocks—List of issues
yielding 5%—Bell & Farrell, Inc.,
119 Monona Avenue, Madison 3,

High Yield

Wis.

which

.

the

of

handbook

Review of industry
particular reference to Avco

North

.

4, Calif. Also available are

comments

realistically priced >— Ralph E.
Samuel & Co., 2 Broadway, New
York 4, N. Y.
.

THE FIRMS MENTIONED WILL BE PLEASED
PARTIES THE FOLLOWING LITERATURE:

—

cisco

Reality—Comments on

to

Government

Aerospace

de¬

a

Thomasville

of

analysis

Securities

with

,

Fay, Inc.,
Montgomery Street, San Fran¬

221

Furniture Industries.
Return

AND

and

Manhattan,

Co.

York—Data—Hooker

Telephone, Crown Zellerbach and
Raybestos

Edison

Consolidated

International

Cyanami d,

ican

DEALER-BROKER

IT

.

((2760)

8

=

125

MAIDEN

'=

MEMBERS

New York Stock Exchange

American Stock Exchange

LANE,

NEW

YORK

38

Trader-Salesman, over 16 years'

experience,

HA 5-7300

°

phases

of

Financial Chronicle, 25 Park

Teletype NY 1-4686

Place, New York 7, N. Y.
Private

Wire System

to

Canada

in¬

perience. Box M 67, Commercial
&

Tel.:

Teleytpe NY 1-376; 377; 378

all

vestment field. Management ex¬

Volume 195

Number 6168

.

.

The Commercial and Financial Chronicle

,

(2761)

Utilities for Rising Dividends
a

.

r\

T

-iZAnrl
J^kilU.

•

I

■

1

Antiniion

I

Named Trustee
boosts and the fact that today the Election of John
stock is down from a 1962 high of as a trustee of

I

.

I -tT*AT1[M h
VXL U W l/ll

VyVJII 1/1JL1 LiC/U.

43%. Present quote of 34, roughly
22 times current
earnings, seems
"""

to

By Dr. Ira U. Cobleigh, Enterprise Economist

..

'

present

good

money.

A

cent

weeks, to be
house

count

The

out, in re- ;
king-sized dis-

a

for

cutting

price

.stocks.

common

j

has

left

no

group
unscathed, and .the, most
obvious
end
result is what; we

might..call
toe melting of the
multiples
Whether,_ its IBM,
Polaroid, Litton, U. S. Steel,,Sears,
Roebuck

nrevailing
prevailing

li/ToH.

TW

.

u-

weeks
weeks

The: electric

long rerelative market

its

is

another

utility with

an

and

the

fast

towns in

petrochemicals

growing

its

com-

Franklin

"u

shout, doubled its

National
its

of

is

and

dent

of

ttereeion

the

on

tions

:

nearby.

common

a

?i«o"

New

John P.

Morgan, II

Atlantic

and

Centennial

boards from 1947-1960.

now

El

Paso

Electric

sells at 24 and pays

$ 02 dividend.

While

no

likes

one

to

his

see

York.

QVipnff Kt Pa
Olierill <K LX).

Sheriff &

We've singled out today, just

stocks, go down, it does appear
that 30 times earnings is a pretty

a

Admit Partner

Viewpoint,
number

.has

and

of

brought

respected

very

a

util-

For

since

all

we

know

h/S been a confderable
where

interest

rates

of

is

serves

5

a

million popu-

and

Philadelphia

divided

about

two-thirds

trie and one-third

from

an

all-time

the market in coming
months, we
do think a fairly decent case can
of

made

good

mand

for

electricity

than

twice

The

is

as

fast

as

the

as

a

guarantee

increased

On

loads.

the

•

industrial

customers.

Altogether, the

serves

about 234

corn-

communi-

other

side, tech-: ties in Montana, North Dakota,
nological
improvements
in
the South Dakota and Wyoming. Tergeneration, transmission and dis-i ritory
is
mainly
agricultural,
tribution

of

current have

created

huge savings in fuel requirements
and in limiting the size of working forces. There is a broad group
of

utilities

that

have

sistently earning
invested
least

been

6%

over

on

con-

total

capital, and there are at
companies that have in-

25

F

-

in

the

Williston

Basin

Pa.

—

creased their dividends five times

that income from this

documented

attribute

utilities.
When

it

comes

to

stocks,
to

seem

a

be

seek

ones

selling at, or below, 20 times earn¬
ings, in growing geographical sec¬
tions, and with a history of rising
dividend payments.
Some issues
whose yields seem a bit low today,
may

prove

dividends

most

satisfactory as
increased
during

are

coming years.

&

value at 15 times current earnings
of a "special situation" in
utilities. There
is
also
a
4%%

Florida

Electric Power

common

$27

per

_

operating

nues

reaching

an

$93.3

million

for

_

ended
per

12

reve¬

months

March

share

pected

the

31, ,1962. Earnings
$1.50 are ex¬
1962,.; against $1.31 in

of

Louis
and

dent;

Max

Sperling,

carmeua

Vice-Presi- Inc.

Fusc°, Secretary;

Cavalier,

P.

OttoTjr".;

G.

Layton,

for

% Yield

June 1

May 1

June 1

23.8

2.93

Fusco,

Treasurer;

and f. Eberstadt & Co.'s institutional

department.

Gwendolyn D. Gibbs, Secre-

an

ojjer of securities Jor sale

or a

ton, Jr. is conducting

solicitation oj

an

a

June 14, 1962

$40,000,000

Corporation

5% Debentures, due June 1, 1982

Price 100%
plus accrued interest from June 1, 1962

Copies oj the prospectus

be obtained from such of the undersigned (who
as may legally offer
these securities under applicable securities laws.
may

are among

the underwriters named in the prospectus)
„

.

___

...

Dillon, Read & Co. Inc.

BIyth & Co., Inc.

The First Boston Corporation

Glore, Forgan & Co.

Eastman Dillon, Union Securities & Co.

Goldman, Sachs & Co.

Harriman Ripley & Co.
Incorporated

2.57

2.92

Hemphill, Noyes & Co.

Kidder, Peabody & Co.
Incorporated

Lehman Brothers

Carl M. Loeb, Rhoades & Co.

18.2

3.80

4.17

28.2

1.62

18

4.00

4.29

3.03

3.33

2.24

2.67

Lazard Freres & Co.
,

Merrill Lynch, Pierce, Fenner & Smith

Stone & Webster Securities Corporation

2.00

19.3

V

„

Incorporated

Smith, Barney & Co.

22.1

19.4

29.8

24.7

.

Incorporated

White, Weld & Co.

!

securities

offer to buy securities.

New Issue

Texas Gas Transmission

,

SAN DIEGO, Cal.-Arthur O. Barbusiness from offices at 233 A St.

,

3.16

24.3

$1

and

Vice-President;

(Special to the financial chronicle)

,

Pike H. Sullivan, Jr. has joined

above

32.4

_

__




S.

all-time high of

19.9

Utilities

William

are

Gulf States Utilities
This company ranks
among the
favored "growth" utilities in the
Gulf South, with

25.7

Edison
& Light-

Otto, 301 Pine Street, is now
doing business as a corporation.

share and

'

Niagara Mohawk
Pacific Gas & Electric.
Texas

at

28.4

Southwest

Power

FRANCISCO,-Cal.—Cavalier

&

convertible debenture, convertible
into

Price/Earnings Ratio

Consolidated

££.

fet/RII

a securities businGSS fr°m °fficeS vestment staff of the firm's wholly tary and Treasurer,
in Gateway Building No. 4. Offi- owned corporation, F. Eberstadt &
cers are Simon S. Cantor, Presi- Co.,
Managers and Distributors,
A. O. Barton, Jr. Opens

—sort

May 1

Central

C\±-

LO

will

1961. Present dividend rate of

Company-

American

SAN

\

expand. The stock, at 35 paying a
$1.40 dividend, is an interesting

picking out
good
idea

to

-•

Corporation

(Special to The Financial Chronicle)

selling at 129.

,

individual
would

electric

of

j

ACLClS

Oil

in

source

V

Now

TlVhp'rQ"f~Slf]t VXJ.
Pn
lliUoloLcttlL

•

Consultants that Neil S. Atkinson and Orhan

field, and net income from oil, in
1961, was $551,980. It is expected

the past 10 years. In point of
growth, net earnings per share of
Florida Power & Light increased
at a faster rate, in the 1950 decade, than did those of Minnesota
Mining or Minneapolis Honeywell,
Growth, with certainty, is a well-

a partner in

New York City, has announced, President; Emerson Burnett

supplemented by some industries
(cement, clay products, sugar refining), mining of coal and gold,
and the production and refining
of petroleum.
MDU has mineral
rights covering an extensive acreage

to

business.
Mr.

^beriff was Brown.
formerly
Stryker &

F- Eberstadt & Co., 65 Broadway/ Jr„ Chairrnan; Allied

X

This announcement is not

;
This is attractive as a hybrid
utility. For 1961, it derived $13.9
million
in
operating
revenues
from
76,490 electric
customers;
and $18.2 million from the distribution of natural gas to 98,415

pany

securities

a

Rocke¬

City,

a

•

Montana-Dakota Utilities
; Company

de-

most

our

4%, which could be boosted by
higher dividend,

growing

whole, and is one
dependable major
uptrends. In the home, a myriad
of new appliances constantly adds
to sales of electricity; in industry,
automation and rising labor costs
economy

of

today's

rewarding

a

eTob^to
Jean Y. Maybruch, Asst. Treasurer,

acquisition

utility shares.

for

more

current

50

■

"*;erestjng cy virtue 01 tne low

...

at

York

New

Leonard a aer^M. President,

Officers

b

d6nt; Gab"el A'

predictions'as TolKcUoTol

yp

Funding Corporation is conducting I. Sadik Khan have joined the in-

share

$2

be

utilities in
prove

PITTSBURGH,

elec-

Continuous Growth
-

in

engage

~

0

Consultants Funding

4%, depending on the geogra-„
high of about $3.60 and motivate
phy of the deposit, are beckoning. some
increase in the current
v.

F.

"

r

gas, with gross

4y4. for 1962 should reach

for
may

pastime

Business

L™neSannUua?Wg NeTper

to

.

patient long-term investors, T

•

Gas

IS ^ WaU Street, New York City,
Public

Vwgmia^ Electric & Power,

Here, the accent is on size and shopping
stability. Public Service Electric markets
and

July 1, Robert Timpson & Co.,

offices

Plaza,

Service, Potomac Electric Power,

and

Service Electric and
Gas Corp.

y0rk

market,

Consumers Power

,

Public

y/eeidoverln4%a ThTis" very I'm- Izld^^ioJ^lyinf between'New
portant, both to investors and to
the

analyst."

by

h

Company, Inc. has been

formed with

sucn as <-onsumers ^ower, ruonc Exchange, will admit Matthew
Service of Indiana, Arizona Public Keating' to partnership,

-

price to pay, even for a
rapidly growing utility. The mar-

ket correction has recognized this

mj* oTed

37, around 24 times
earnings,-r CSR
is * a
proven
"gr0wth" utility, not unattractivejy priced

rich

President

Opens in N. Y. C.

Robt. Timpson to

On

•

Vice

The Com¬
mercial Bank of North
America
has fifteen offices in
greater New

feller

SbSTis.
increase. At

Senior

Chairman of the Board and
Jacob

York. His late
distribution; father, Junius S. Morgan, served
oil and

Peoples National Bank,

Leichtman, President.

of

c°PPer industries, and from a se0f major
military installa-

a

Commercial Bank of North
America.
G.
Russell
Clark
is

Mor-

of

pany

family.

of the

Com?

a center

banking

Oldenbuttel; former presi¬

becomes

Vice-Presi-

a

growing

Charles

dent of the

rjes

per share

For example, as illustrated in the

increased.

JLtJUpiUb

1

effective June 1 of the
Peoples
Bank of Brooklyn into

er

B.

gan Guaranty
+uA- Trust

,..pro

benefits greatly from the

CSK has

years>

«

transportation

CSRs

011

T

ln lhe Past

.

0rSnaTmLnstays
buf today, El Pa^o

S

nn

mWi#*

pn+fnn

service

r?pian»«?
Cel^

DuPont

•

Commercial Bank of North
America has announced the
merg¬

Southwest.-

business,, which used to be mon has been
split, two for one,
rural,, is now principally three times in the
past 15 years,
from

XT

National

Centennial

announced'Jay

mostly

derived

A henvhc

A.UOUI Uo

Insurance

The

exceptions.;

no

director

.

utilities,

for their

stability, have been

and

,

kSL■ h'Sf ^11'ini
bide have.
^9cated

1

Multiples,

..

nowned

six
six

a

Mutual

performer people in, and
around, the.city of Board of the
A El
Paso, Texas. The population of; two compastrictly electric utility, it serves a the area has doubled in
the past nies.
population, of .2,700,000, mainly, in 10
years, and so has the per share
Mr.Morganis
the states of Texas and Oklahoma,
net of El Paso Electric..

or

those

the

Atlantic

Insurance Company and
of its affiliate,

]electricVcomply serving8400000

consistently good

Central

iS

Aetna^Life, today's cities
melsTon^^
ZTos tri^l
over

for
,

El Paso Electric Company
This

Central and Southwest Corp.
a

value

.

Commercial Bank

Morgan, 2nd,

The

swift review of the extent to which the recent market slippage
brought electric equities into a more attractive buying range.

has

The market has turned

■

P.

9

'

Dean Witter & Co.

:

10

The Commercial and Financial Chronicle

(2762)

.

Thursday, June 14, 1962

.

.

for 25 months. Thus

history itself outward trickle of gold serves as
suggest that the present a constant reminder'of this fact.
Finally, there is at vague arid
expansion should be good for the
better part of another year..
ndrt-specific fear—starting but as
a fear that the social and politicalIf. these tangible indications of .
the economy's future course are? - climate' iff turning hostile
thai
taken at face value and "added has begun to4 lead ri life of its own*
up," the nation's output of goods?. by sheer constant talk.
It is not
and* services1
would
be' .iri the at all certain: that, we cam talk
neighborhood of $575 billion for ourselves into a recession, but the
the final quarter of the year. This present situation? should provide'
would represent a £jairi of perhaps us with a good test.
7% for the year.
Such' a gain

Current Economic Outlook
By Dr. Paul W. McCracken * Professor of Economic
University o/ Michigan, Ann Arbor
Former

member of the Council

would

Conditions,

of Economic Advisors lists factors

seemingly sanguine prospects for a respect¬

in Gl.NA to a year's-end annual rate of $515 billion
continues to be better thai* the business sentiments being expressed.

would leave

schizo¬
Business sentiment and

phrenia.

confidence

have developed

bad

a

of nerves,

case

though

e v e n

of

cations

ture

fu¬

business

volume ha've

strengthened.
There

atft Address by Dr. Mc¬
the Twelfth Annual Busi¬

before

and Finance Forum, sponsored by
the Firet National' Bank fit- St. Lduis, June

Bj 1*962:

f

,

J

.M.

* r'v

McGraw-Hill; survey

ofthe

In spite of these seemingly san*
guine prospects, the business cOm?--

miiriity is jittery and' nervousi The
Federal budget £s one Source. Fed¬

eral cash outlays ate

now

;

m

i

run-'

ning at about a1 $115 billion an¬
nual rate. This is the*- volume* of>

Trada group's new

.

President W. W. Lynch succeeds Philip A.FIagar,

J

spending projected by the Presi¬
'J: while Walter Bouldin takes over th8 office of Vice-President. (
Vv _•
dent in his January Budget Mes*
mated increases must be inter-» sage for fiscal year 1968; • If the Mr. W. W. Lynch, President of zens' Council, Trinity River Au-.
preted as a good omen.
i
..
January Budget Message project Texas Power & Light Co^ was thority, and State Faiv of Texas,
Third,
housing,
one
of
the tion for the next fiscal year i^- elected President of* the Edison He is President of the Texas Redoubtful
elements
of
the
1962 realizedj the rate of increase of; Electric Institute by its Board of search
Foundation
of
Rentier,
prospect, is showing unexpected, Federal spending will have td? be:j TeXUS; ; a* 'Director
of HoWarcL
decelerated so sharply the Msl-«
strength. It now seems probable
Payne College Research and Be- ■
that construction outlays for hous- ness situation might be adversely
Velopmenf Foundation at BroWn- •
ing will make a contribution to- affeetedl If the, rate of increase";,
wood; a* Trustee of the Texas*
the year's business expansion after does not slow down, howeVer, av
i A & M Research? Foundation andall.
Moreover, technical" condi- • large deficit for the next fiscal,
of Southwestern Medipai FoundU-tions augur well. Credit is easy. year is probable. Neither prospect,
tion; a member of the Advisory;
Housing starts, after sagging omi¬ is particularly cheering.:*;%. />/.■:. •>
Committee of the University Ofnously from October to February, DaRas; * arid a 'member of the
Second,, the stock market, break ;
bounced back strongly in March
has compounded an already evi¬
regional Executive Committee of
and April to very high levels.
A dent sense of uneasiness.
Prices
Region
Nine,
Boy
Scouts
of
strong outlook for housing would;- were, of course, too- high.
America. •
•'■; ' *
:
We"
of course, be more secure if the should
-undoubtedly rejoice l tftafrBorri in ScottsbOfo, Ala:, Viceindustry could get control of its there is now less certainty- of :
President Bouldiri was admitted'

indi¬

tangible

♦Eifcei'pts frem

Cracken
ness

•

garded by analysts as unrealistic.

November

to be suffering from-

seems

short of the Ad-

but these were widely re*.

year,

■ <

last
projected a / 4%. in¬
crease
from ' 1961
to
1962; the)
Commerce-SEC survey in Marchindicated 8%; and the recent Me-*
Graw-Hill survey showed an 11%'
projected gain for 1962. This pro¬
gressive scaling up of the esti-:
initial

situation at present

business

us

continues to be.
These4 £ref

sentiment.

ministration's forecasts early this>

hoping that the "tangible forces
prevail against this recent snow
job of pessimism and uneasiness."

Says there arr good reasons for

making for a further expansion will

The

,;

,

able 7% gain

outlook

gOod reasons for hppiAg that the
tangible forces making Tor a fur¬
ther
e X p a nsi o n
will prevail
against this recerit snow job of
pessimism; and uneasiness.

.

auguring well for further, solid business expansion and, also, that
make the business community jittery and nervous> ,So far as Dr.
McCracken can see, the

The.

better than

,

.

>

are

five major

tangible

.

*

factors

indi¬

cating

a

fur¬

ther

expansion

of

.

business

activity.
First,
•

con¬

Dr. P. W. McCracken
after
playing things
cautious during the winter, have
stepped'up their spending sharply.
There are many evidences of this.
Auto sales have been running in

sumers,

excess

of

a

7 million annual

:

.

costs.

rate,

;.-d:

\

to

inflation.
Lower
and,
Fourth, the recent ~ expansion- more realistic stock prices may"
Walter Bouldin
W- W- Lynch
generally has been solidly based, well lay the basis .for a morewith an impressive absence of ex¬ orderly .and
sustained
business
Directors. Installation of the new
cesses.
In spite of strong autoi expansion. The volume Of credit
President was made June 6* at
sales, there ^as been no splurge in the market is- undoubtedly athe closing session of the Insti¬
of buying On'credit. Accumulation - small fraction relatively of wfiai
tute's 30th' Annual Convention.
of inventories has been low rela¬
it Was in 192#. Even. so,, this de-"
Vice-President of the Institute
tive to'other periods
^whei^ this" yelbpment must foe placed om-the- Sirice' last June, - Mr. Lyftch suc¬
feature of the economic 'situation* mihus side.
Because it in widely,
ceeds Philiri A. Fleger, Chairman
was getting ready, to play the part', considered' to be an
indicator, the:
of the Board and President of
of the cyclical wild man.
break
has
raised
the
In the recentfirst quarter of 1962, 1.8%. of the' spectre of a recessioh down the Duquesne Light Co-, as head of
the* trade association of * the na¬
output of tangible goods went road.
And, moreover, holders of tion's' investor-owned electric util¬
into building up inventories. This stock (who- are among those mak¬
ity -companies.
compares with 2.0% in 1956, and;. ing
important, decisions jri the,

Department
store
sales
during the last four weeks were
9% ahead of year-earlier levels
and this substantial improvement
has persisted since Easter. Finally,
there are strong indications that
sentiment ofthe ordinary consum¬
er has beOn improving.
Thus we
now
have
strength in an area
whose sluggishness a few months

strong.

creeping

-

-

major source of concern.

Second, the tangible evidence
points to
a
further substantial
gain in expenditures by businesses

-

for

at least

economy)

must

poorer/

;;;;;kM; - •—• /; ?

be

Fifth, the present expansion has
now
been underway for only 16
months.

genuinely

new
and improved facilities.
Corporate profits for4 1962 should

15%

Surveys

sively

beyond
have

larger

those

of

indicated

gains

in

1961.

equipment outlays for 1S62.

10% in mid-1920.

Third,

we

Expansions in the post¬
war
period have averaged 2%
years, and even the short expan¬

and

The

ments

sion

succes¬

plant

pregnable,

from

1958

to

1960

continued

are

also

feel
far

never

worrisome'

a

bit

Named to the Vice-Presidency,
scheduled
to
head
the

from

in 1963, is Walter

group

and

the

continued

a

ecessor firm'.

y-,:'■'1'

y He was Secretary Of the Coosa
River Newsprint Co. from, 194#
1952'.

to

In' 19524

Ke

fiShied'

'wa's'

Vice-President of Alabama Power

Co.,

and

elected Executive

was

Vice President in 1955 arid PreSi-"
dent in

1957.

5

.

Bouldin

Mr.

number of

is

a

Director

Co: and

and

ar

of

a

organizations, including
Institute. He

is

Vice-President

Southern Electric

the

Co.

Backgrounds

a

of

Generating:

Director and member of

National

"

After

graduation from Texas
A & M College in 1922, PresidentElbct Lynch spent a year. and a*
half With Westlnghouse Electric
Manufacturing Co., joining Texas
Power & Light Co. iri 1923'. He
served successively as design; as¬
sistant, field electriciari and fore*
mari and superinteridehf of distri¬
he

before

bution

Was

elected

Vice-President of the company iri

Association

Cos.

He

is

member

of

mitfee

also

the

of the

a

of

Electric

Director

and

Executive

Coiri-}
Watrior-Tomfoigbee-

Develbprilent Association.
Active

Bouldin
member

mitfee

in
is

of

and

local

affairs,

Vice-President

Mr..

and*

a;

Executive

the

Board of

the Birmingham

Com-,
Trustees of

Symphony Asso-;

Trustee of Southern*
Research Institute.
;

ciation, arid

a

.

1936.

He

was*

nariied

Executive

Vice President in 1947 and became

STOCKS

•

COMMON

STOCKS

River

Southeastern

Ordnance Association.

Utilities Co.

,

in 1952, Mr. Lynch was named
Engineer of the Year by the Dallas
chapter of the Texas Society of
Professional Engineers. Under his
leadership, Texas Power & Light
Co, in 1955 received the electric

Primary Markets

V

South-

Services, Inc.; CoOsa-Alabairia'
Improverrierif Association?
Electric
Excharige;'
of the Edisori Electric ^Institute
Birm irigham Trust National Bank
arid a member of the its Executive
Liberty National Life Insurance
Committee. He is Vice-President*
Co*.;
Birmingham
Chamber
of
Director, and- a member Of the
and? the
American.'
Executive
Committee
of Texas Commerce,
Lynch has been a director

Mr.

PREFERRED

His directorships include
erri:

president in- 1949.

•

practiced law in Birmingham
member of Martin, Turner,
Bl'akey & Bouldin* and the pred¬
as

of the executive committee of the.

inj the international finan¬

cial picture. The dollar is *npt im¬

arid

Director

RoUldin,

of Alabama Power

President

the Aliabania Bar after graduation
frorn* Harvard LaW School in 1928;

Edison Electric

hence

develop¬

Public

BONDS

-

•

and the market continues to look

ago was a

.

■

Complete Trading Facilities

industry's

highest

to

the LOS ANGELES, Calif.—William
(now R. Staats
&
Co., 640 South
Edison; Award) "in* recogni¬ Spring Street, members of the
tion of its distinguished contribu¬ New
York
and
Pacific
Coast
tion during the year 1954 to1 the Stock
Exchanges, on July 1 will
development of electric light and admit Benjamin P. Sanford and
power for the Conveiiierice of the Homer R. P.
Lytle td partnership,
Charles

honor,

Award

Coffin

A.

The

Blyth 6. Co.. Inc.

Public

■7

and

benefit of the

indus¬

try."

New York •
Boston

•

San Francisco *

Philadelphia

Louisville 4 Detroit
Pasadena

Fresno




•

#

•

Pittsburgh

Milwaukee

Spokane

San Jose

•

Chicago • Los Angeles • Seaftle • Portland

•

'

*

Cleveland

..

•

agricultural,
-

Indianapolis

•

Minneapolis # Kansas^City * Oakland- Sacramento
•
Eureka
'•
San Diego -

Palo Alto

•'

Oxnard

•

Tacoma'

8

Eeno "

Mr,

Lytle is in the firm's* Corpo¬

Mr.
rate

Well known in Texas industrial,

Lynch is

and
a

eiVic

circles,
Director and mem¬

ber of the Directors' Committee of

Finance

Sanford is

Department;

Manager of the

Mr,
Bev¬

erly Hills office.

With California Investors

Republic National Bank of Dallas;
a

Director

and

member

of

the

Executive' Committee Of Employ¬
ers National Insurance*1 Co., Texas

LOS

ANGELES, Calif.—Louis E.

Aron has been added to4 the staff
of

California

Investors, 3544

Employers Insurance Association, Olympic Boulevard,, members of
and Employers Casualty Co. He is the Pacific Coast Stock Exchange.
a Director of
Employers National He was< formerly with Costello,
Life

Insurance

Co.*

Dallas

Citi-

Riissotto

&

CO.

Volume

195

Number 6168

.

.

The Commercial and Financial Chronicle

.

(2763)* 11

while Kuchel is considered one of

.the

more

Since the

ed the issue

\

BY M. R. LEFKOE

liberal

GOF

of

".conservative

basis

-

vs.

even more than the gubernatorial race, the failure of

because

•

w--

set of principles.
->
;
by
defeating Joseph ^ "Now,'to get tiiose considered many ^'Voting "conservatives"^ in
Shell, State Assemblyman, for the votes, Mr. Nixon must show them California
as
"was
previously
Republican gubernatorial nomi- —r by his own actions
that he thought. ;
; L" ..i'
*'
nation in California.
V
wants their votes.
*■/'v.--./: ;•.» '-'"r'
! •
of

,

California

the

•

"I bav-®
rcpeate^y^ stafedi^at^
r
A
* would be happy»fo discuss these^ ^ ;.^hiieTthese two arguments ap.

of

are

race

national

interest-for

or

To Admit Three

I?1
™re*:n;

whether he will try
remains to: be

the

will admit Henry

Damel J- Lynch to partnership,

700,000

force to be reckoned with.

•

m *

Tn

4

,

t

Boettcher & Comnanv
■

.

«• ^onyjany

A

W.

Bruce McBratney, and

who
sup1;
ported Shell's principles of con- '
; servative government are still a ** Villi
government are still a

an

reasons:1

•

.

rough

alone"

it

In -eithercase, •
rank-and-file - voters
seen.

analysis of the niatters with Mr. Nixon_at.h|S)eon- pear valid on their face, there are
voting should indicate the -direc- ye™e?ce/u - + " - - - v' • ; — ^ "A.several, other factors which must
tion at the political future of the■>,. f**
there be no misunder- ids,, be considered.. In the first
man who lost the I960 presidential
standing; •-I, disapprove whole* piace,; Shell was a political 'untwo

*.

,

a

-

to' "go

,

results

-

*

Nixon, faces

serVatiVes,

,

The.

RiQhard

I- represent

comeback

..

$100

battle in November and will need

Richard Nixon began his political

,

buildings),

-

recreational facilities.

J-liberal"

and

college

million for senior citizen'$
housing,
and $150 million for parks and

irenect-

opponents
Last week former Vice President

marily

senators,

for senator

race

\

YT
V

i

'

TYlirmo Pn

J-/.U.11I1C vU.

•

i

•

,

A Hvnii" PdyfriOT*
XYUIIilL 1 (XL bllCl

^

;

T

^

.r

.
(Jpens COUlder Office As of June 21, James M. C. NewKennedy.by aearwtuy
of .We..^ BrownAd-; known-at -the beginning pf.the BOULDER, Coloi—Boettcher and
?1Wa?r >P bec?ma a ,Pa"?er in
118,500 votes, and, since. Nixon's nnwstration,. , andjfn.der»,. no race lpst January, and, in fact,Company:has'- opened offices in'
Y; Dunne & Co., 120 Broadopponent is one of the leaders of circumstances .would eupport,.it:.": did not receive any widespread t h e Bownon
way,
members
wav New Vn"' rM" —
Mo"' York

election to

John-F.

California

conservatives/ Shell's

It as .apparent &om .this state- , state recognition

as^to -the actual voting
strength of the conservative
Nivnn

•'

...

support to Nixon unless the latter

is spared to indicate

thp nHmarv hv nnil

wnn

287^99 ballot?to

ins'1

not

*

.>•.

r

671

TiS

&7

P^^Pl®®- Whether

counted, it

garnered

SeftM

the same 8 to,i p oporuon.
-r-

a

—

Tough Struggle

m

November'

nf

nrncrrnm

program of

6,
of

/

.

:

which

has

called upon

th

.cocjetv

separates

the NiXOn moderates and the Shell
-

conservatives

has

and

called

the members

whose strength is

a/its

TheBoulder

S®®?ndlyJ Nixon has always pre- staff , will
a

face to

conservative

,T?nhprt

Wplrh

1 cietv's• head

for

y

.

headed

'

^
„

conserv3-

""
for "the

Leonard

be

June 21

by

the primary fight is over. He has
explained his method for gaining

Ex-

.

-

kuctel

probably • never

7

had

J

L.

237

Hear
many years

51st

Street

Finally, the defeat of three out
five bond issues does show a
tho

r,mtnmprc

educattona!

on June 18 at the head-quarters of the New York Society

New

at"l5 WuTilm

of Security Analysto
Street.

York

thonv

dent and Treasurer; Stanley Lane,
M.
Vice-President; .and
Irving "

narl

r

Cnovoi.m,

^uiusicui,

the average .voter regarding

-

Market

nf

Anthony

.

"Gaubis

Gaubis,
Cn

wil

An-

of

ar!rlrpt;«?

realized

v«

^

»

A^opifltiori

to

on

meeting
1

any

nn

on

Slem wST h°o?d ^

;;

CnmArafiAn

OTlil vOtporatlOn

West

II,

partner in

a

Customers Brokers

Patterson

a

cfrnuMndamarhrtoco

> -

Donald

a^y o'pporition'untii - business coptinue the investment
°PP°5ition until
,of > Richard Gray Co.
Of-'-^Sf'-^r^
.Officer? .we Richard Gray,. Presi-

^

con-

r

j

-r

-

Hockstader,

Exchange.

befQ,e ^ moye to Boulder.
^17

^

A.

will become

L. F. Rothschild & Co., 120 Broad¬
way, New York City, members of
the New York Stock

.
trading department for

senatorial

.

Vaters

of

thp

.

^

"
"
running

full

peak in toe State
mnaunrp thp1pfl>ipr-''

+n

rvf

that-,

now

Stock

To Admit to Firm

thenewBoulder office

gov-.

•

;

ocaciary.

,

on Market Evaluation

>.»./i.

"

;

Donnelly Forms Co.

PALO

ALTO, CaL—-The Donnelly
has

boon

formed

FRANKLIN, Ind.
Fetterley

Now Pronrietor
r

*

is

Raymond

—

now

with

Enipl rf+r!)
.o^ces at 201 Town ,&> Country
vm

^-e *™0.. Birch Congressmen, ernment spending and fiscal ifRepresentatives J°hn Rousselot ^responsibility. The propositions
and
Hiestana, easily won calling for $200 million for new

_

the meeting

and Forecast.

Comnanv

.

-

nrhr^*v: In°^ddiR^irhard-

unity within the party

"York

of

sbof
and - Richard Gray & Co, Incorporated
Howard/awis
did mounts has been formed with offices at
scale .campaign
scale ^campaign and many

.

party ta the No-. sidered
election by bridging the
gap

manager

8?°'

mem

'PUD1^ry reaq oui 01 xne
than one million, party during the campaign, ^xon,

Nixon hopes to be able, to unite

ideological

nopthan

Jetton throughout ,t3ie.'.st^te was a
^crucial factor, an^oxplaihmg their

i

•

^

the Republican
vember

"

Jives

SoSrwhose S'

registered Republicans in
in

the state by more

be

^

The Birchites

.

John BteA Society, whose
john Birch

,
.h
t
Democrats, who out-

of toe

20%

New

L. F,

Patterson wall

alone,

meaningful

more

htiwdm&go'
Mr.'' Niton's- t; The faI^u.re °«hetw°
t
+"roe

1
-Sfwrp«iwrhti^va
progressive conserve

the GOP votes in addition to about
«w..oer
number

„

voters* an image he attempted to DonaldL.Patintensify
during - the
primary, terson, Boett. ThuSj his race with Shell was not
^
Co
announce their support.for; Nixon,,; really a.contest between "liberal"
^partner, who
aftd "conservative" candidates.
.
was in charge

v

poll at least 90%

on

fact,

j-

his quest to reside in the Govmansion. In order to win
election

-

Furthermore, even if Shell and
top-leyei supportos'puWicly

ernor's

Nixon must

This

.•

his

-

Despite Nixon's relatively good
an uphill read

the

siderably.
:

in

,.

race.

Sjteal^sented;
JN1^an must consider careruiiiy.

showing, he faces
in

not Nixon

or

ap-

another 150 000 votes

electoral Votes in the I960 presi-

'

ac- ..dential

the figures.themselves indicate.,d

that the two GOP candidates

pears

his

^P^nce of Shell's "eonservatdve" would make: Shell's showing

for

ftol -Si* £&£"wtes
have not yet been

the

change.

opposed

mation

movement.

of

until the GOP Business Bldg
that, although he is strongly state convention in March. His
a+ 2037 Thirto Brown, Shell is still
-opponent, a fourteen^ear political teenth Street"
reaay to offer his unequivpcal 'veteran; captured California's A
.Oohalii <L

ment

performance should provide infor¬

Village, to

:

C.

sole *, proprietor

business.

engage

Partners

Donnelly,

general

i

in

a

are

securities
Dale

partner,

L.

and

ported
tivc>

realize

bv

choice

is

November

and

Brown is not
>T.

Nixon

.

,

:the

that

Mr.

conservative

as
.

,

.

as

I."

...

.

strategists

s

of winnrng

what

conclude

.

confident

are

inJ^oyerpber apdpffer
argumept.
They

f°R0wing

.

claim mostof Shell

s

workers have

already offered their services to
(a claim, denied by a close

Nixon

Shell advisor) and with their
there

should

be

little

help,

trouble

in

polling at least 90% of the GOP
voters. They then point, to the resuits of the Democratic primary to
show where the Democratic votes
will

from.

come.

Gov.

Edmund

received
three

.

The;

G.

(PatX Brown
votes,
while

1,732,099

almost

incumbent,

unknown

received

opponents
335,623 votes. The write-

in votes

s®eRmS Ris party's nomination,; jjon
Whether or noLthe
-70'000 voters who supported these
'n

three

candidates

account

Democratic vote.
ooiot.

Thus,

total of

a

on

js

problem

indicated-they preferred

a

candi¬

date other than Gov. Brown. From

theser unsatisfied Demo¬
crats, Nixon campaign strategists
feel sure that the necessary votes
from the Democratic Party will be
forthcoming.
<
among

,

x

While Nixon might be confident
of

an.

there

easy
are

.victory in November,
several

which

strategy

factors lin

his

further

demand

anotber

...

Tp begin with, Shell has not yet
ous

rival. In

speech

a

m

which he

conceded

"The

^
"The

.

majority

of

Republican

voters have made it clear that
cess

or

failure

m

November

sueis

to

rest with Mr. Nixon.

"Those 700,000 Californians who

supported

me

did«so

on a




thinking

of

,

an

offer

is tt*der

to

merly with Dean Witter & Co.

buy

any

circumstances to be construed as an offer to sell or as a solicitation
of these securities. The offering is made only by the Prospectus.

no

NEW ISSUE-''

June 8,1962

„

$25,000,000

The Columbia Gas

e least.

•

System, Inc.

4Yi% Debentures, Series Due June 1987

far^ of 2% 18 slim' to
Dated

June 1,1962

Due

Defeat for Conservatives?
Re£?ardle«. of Nivon'c virtnrv

!?so0Lj;, *

•

^
8
dicate

a

he

re^

Price

£
primary elections in¬

J

failure of the

prove

with,

their

Shell

same

To

cause:

received

percent

of

the

100% and accrued interest

"right-wing"

movement to live up to the claims
made for it. There are two factors
which they point to in attempting
to

June 1,1987

or

7-

fv

^hat

Copies of the Prospectus
announcement

dealers

begin

about

or

be obtained in any State in which this
from only such of the undersigned or other
lawfully offer these securities in such State.

may

is circulated

brokers

as

may

the

Republican

.as
did Thomas Werdel, a
California Congressman who ran

vote

against Earl
GOP

Warren

primary.

sidered

as

that

at

in

Werdel

much

a

time

fiscal
as

is

the

Merrill

1952

was

Lynch, Pierce, Fenner & Smith

con¬

-

conserva¬

Mr.

Shell

'

-

■

'

'

to

improve

oh

Werdel's

Goldman, Sachs & Co.

-

is

just

that—a

lot

!

Francis I. duPont 8i Co.

A. G. Becker & Co.
Incorporated

Equitable Securities Corporation

Hayden, Stone 8C Co.
Incorporated

Hemphill, Noyes 8C Co.

Ladenburg, Thalmann 8C Co.

Salomon Brothers &Hutzler

of GOP
Senator Thomas H. Kuchel, they
ciaim> lends support to this conl
elusion. He polled 1,331,433 votes
0r'75%

of the total Republican
ballots cast for toe post of U. S.
Senator. Two of his three

oppo-

were

A. C. Allyn & Co.

F. S. Moseley 8C Co.

of

The Primary -victory

nents

Lehman Brothers

.*

margin

may indicate that a great
deaj 0f the talk regarding a
growjng
conservative
movement
in

White, Weld 8C Co.

Incorporated

>

They believe that Shell's

defeat,
Shell
stated: California
key to success for the Re-- talk

S,UvhCandgParty d°eS n0t r6St ^

announcement

ballots for him this fall. Needing
votes of about 20% of-the
registered D o m o ct a t s, Nixon's

failure
offered his support to his yictori-

This

^L?^m0Cra^C.'
f
disapproval of gov. Brown,
u1^ the primary ^will : cast ttieir

today.

Nixon's Dilemma

,

will

of Mx. Nixon to claim that all of

say

of toe firm,

-

ls+ S01u®what hopeful

*

tive

analysis.

Nixon,

bave to face during the next
few^
months
'
r
r
',
'
,

r\f

of fVic npmnpratc \xrhr> Mnfori
the Democrats who voted

22%

Mr; Nixon despite
the Birch Society

jjjs position

for

another 7% of the total estimated

pubBc construction (pri- merly Vice-President

will be willing to cast

men

their ballots for

received by the two Re-

publican

fGr

arch-conservatives,

*

*

First of

William Blair &

Company

Shelby Cullom Davis 8C Co.

r
_

Michigan Corporation

Goodbody 8C Co.

Granbery, Marache 8C Co.

Johnston, Lemon & Co. The Ohio Company The Robinson-Humphrey Company, Inc.

12

The Commercial and Financial

(2764)

Chronicle

.

.

^Thursday, June 14/1962

of its potentials, optimism died an ferent from that of the 1920's- (I other
paraphernalia, that is so
will not bore you with a recitation readily; available4 to -the govern¬
unprecedented natural death.
-

Whither the

.

'

SO, we are in a bear mafket—
where do stocks go from here?
Let us take the three fairly clearcut alternatives that present them¬

&

of

the

role

differences:
of

the

government,

enlarged ment- in a New- Model Economy
defense would be the preferred solution.

spending, the built-in stabilizers,
Therefore, in my opinion, a
institutionalization of savings, the
repeat of the 1929-32 disaster is a
selves: (1) the 553 DJIA intraday FDIC, etc.). It would be all but
very, very remote possibility. -Re¬
low
of May
29th marked the impossible for a cumulative vicious gardless of what the market
Rejecting either extreme bullish or bearish prognostications of the
does,
lows of a. sharp, short bear market circle of economic and stock mar¬
the economy, and with
stock market's direction, Texas analyst foresees an "extended period
it, corpo¬
and a bull move is now com¬ ket weakness to come into being
rate earnings, will hold up rea¬
of trendless volatility" ranging from DJIA upside of 670 to 470-520
of
cir¬
mencing which will lead to new under the- current set
sonably well. Therefore, the major
downside. Short-run prospects are: (1) May 29 DJIA lourfor the
highs by no later than next year cumstances.
/
yyyy'y/ area of vulnerability in the mar¬
next several months;
(2) Summer rally of up to 650-675; and
(in other words, that this selloff
Not only is the economy struc¬ ket is in rates of
capitalization.
has been just another, piinor bear
(3) October's end down to 500 or below during the tax-selling
turally different from 1929, it is They have dropped precipitously,
market of the type we had in 1957 in a far healthier
season.
Mr. Scruggs, also, expects mild business turndown in a few
position. Busi¬ and for many groups, a further
and 1960); (2) that we are in the ness has been in a
months with the economy moving ahead by late 1963.
Writer
high level re¬ dramatic erosion is in prospect,
midst of a 1929 style collapse and cession since 1957.
During this but so long as overall earnings
postulates a DJIA earnings of $34-$36 this year and $32-34 next
so far have seen only the initial
period (as pointed out so elo¬ and
dividends
are
maintained
year, and 15/1 capitalization ratio—which, in turn, is broken down
installment; and (3) that the mar¬ quently, but prematurely by the
substantially
into 9 P/E clasifications ranging from very highest grade growth
intact,
there
are
ket is on
the
threshold of an Editors
of
Fortune / in
recent limits of how long P/E's can be
stocks to lower grade cyclicals. "The party is finally over," Mr.
extended
trading range defined months) solid progress has been
pushed.
Avarice
will
triumph
Scruggs opines and adds that even though the cult of continued
more
or
less
by the areas of made in absorbing the excess ca¬ over
pessimism long before equity
growth and inflation has been breached the unlikely propsect for
congestion around the highs of pacity built up during the capital
prices reach cataclysmic levels.
1959-61 (670-730 DJIA)
true deflation means equities have no valid alternative.
and the goods boom of the mid-1950's. The cult of the
equity is only ex¬
highs of 1955-57 (470-520 DJIA). Many of the. imbalances and dis¬
hausted, not dead.
In the last
happened
(certainly
The Great 1949-62 Bull Market is impossible
tortions accumulated during the
analysis, what else is there in the
improb¬ Sees No Buy Market Commencing postwar era have thus been liqui¬
dead. Prior to its recent fantastic the unprecedented, the
long run.
volume and price performance, it able). Our Great Bull Market was
The first
alternative
(a new dated. By 1965, most of the excess
could be argued with considerable killed, not by tight money, but bull
capacity will have been absorbed,
Envisions Trendless Volatility
market) is the least convinc¬
by tight psychology; liquidity has
and with family formations rising
j ustif ication
ing of the three; confidence is
This
brings us to
the
third
run
out of optimism. Money has
that
the
too damaged. The Federal Reserve sharply, the stage will be set for alternative
(a
trading
range).
been progressively easing all dur¬
a renewal of business vigor. Iron¬
Spring selloff
can increase the supply of money
Given the crippled state of con¬
ing the decline from the December
was
no
more
investors
have
become fidence on one hand and the rela¬
almost at will, but there is no ically,
highs. Because of this, and because
than an inter¬
aware
of the torpid state of the
similar
psychological
reservoir
tive invulnerability of the econ¬
of
the absence of
By Leonard Coe Scruggs, Senior Analyst, Dewar, Robertson
Pancoast, Dallas, Texas, Members New York Stock Exchange

mediate

signals

cor¬

in

rection

tired but

very

from

several previously reliable indica¬
tors of near term technical dan¬

a

(odd lots, breadth, etc.) I,
underestimated the seri¬
ousness
of the immediate situa¬

still alive and

ger

k i

for

eking up¬
But

trend.

one,

there is no

tion.

gainsaying the
panic that began Monday

ginnings

and

28th

the

which

culmi¬

nated in

a

Leonard Coe Scruggs

ty¬

phoon of selling Tuesday. A de¬
cline of 188 points (intraday) in
the DJIA, 55 points (intraday) of
which were
crammed into 7+2'

Until now, bear

market be¬
been
associated
with tightening, not easing, mone¬
tary conditions.
How could anything so "unnat¬
ural" happen?
The body is still
too warm for a thorough autopsy,
but I suspect that the same post¬
have

Model

New

war

Economy whose

that

can

be tapped for an instant

supply of optimism. The postwar
Era of Good Feeling and pros¬
perity at home and dominance
in

culminated

abroad

no

forward

as a

progress

whole made

(blue chips

topped out in 1959, growth stocks
in 1960, and "defensive" issues in
1961). Equally, it has been appar¬
ent since last summer that

a

ma¬

brewing. For
almost
three
years,
in various
writings, I have stressed the dan¬
gers inherent in the current mar¬
ket situation, and particularly in
jor

shakeout

was

nature of the Great Bull Market's

the

herent
Can't Blame

Tight Money

All Great Bull Markets

product of psychology and
In the

has

"the

in 1958 and again in 1961; growth

run

out

of

One is tempted to say the

stocks in

1960; blue chips in 1955

and again in
ance

stocks

1959;
were

even

in 1955 and second in

life insur¬

twice, first

run

1961). Then

having exhausted thoroughly all

Public

ACTIVE

economy

ish).

ly different from 1929, both struc¬

less

turally and internally.

a

effectively blocks the appearance
of bear manipulation, while high
margin requirements serve, with
several exceptions, to shield the
market from the type of self-en¬
forcing liquidation that was so

laise at home. For five years
of

them

under

stock

market

aged

to

(four
Eisenhower) the

miraculously man¬
ignore the end of the

Doubts We Are in

a

1929-32

Situation
The second alternative (a 192932 style collapse) is

almost

as un¬

convincing as the first. Many in¬
vestors,
though,
intrigued
by
superficial, half baked historical
analogies between today and 1929,
subscribe to this disaster hypothe¬
sis.

A

should

moment

of

banish

cool

reflection

this

bogeyman in
all but the most misanthropic of
hearts. The economy is vastly dif¬

Service Co.

much

in

Similarly,

evidence

The SEC

in

1929-32.

internal condition
of the
market
is
incomparably
better
than
that
prevailing
in
1929. As is implied by the amaz¬
ing distribution
of group bull
market highs between 1956 (cop¬

the

ing

extremes

the

in

to favor stocks enter¬

seem

extended period of trend¬

an

volatility

(extended because
improvement in business

basic

several

is

>

unlikely

-for

years; volatile be¬
of the differential technical

cause

more

health

of

which

the

make

because

up

various

groups

the market, and

investors

will

lating and testing
sensus).
„• i Jil l

be forrnu-

a.
.

new

con¬

ill

LU

*

The downside limit of this trad¬

ing range is still conjectural

(on

the

en¬

upside, the market should

counter

a

massive

wall

of

sup¬

ply whenever it rallies above 670

(utilities), many
sectors of the market are already DJIA). I would guess that it will
be found in the congested 470-520
thoroughly liquidated.
In con¬
DJIA
area
where
the
market
trast, in 1929 almost all groups
made its 1955-57 highs. Not only
had made their highs within 18
is support on technical grounds
months of the peak in the Dow
an expectation at this level, fun¬
and
consequently
were
about
pers)

and

1961

-

equally vulnerable when the big
break

Gold
Of

damentals also confirm its defen-

sibility. The DJAI should earn
$34-$36 this year (assuming a re¬
cession
starting
sometime». this
gold Autumn) and (assuming the re¬

came.

Stocks

there is the
cession is contained by a large
problem.
We will undoubtedly
tax cut) $32-$34 next year.
If
hear
much
in
coming
months
these earnings are capitalized on
about the loss of gold
and its
a
reasonable
15/1 capitalization
suppose4 implications
(on this
basis
alone, gold stocks are a ratio, the downside price target
course,

promising short term speculation).
There are many reasons, which
limited space does not permit me
to enumerate, why our balance of
payments problem will not cul¬
minate in either
a

7%

a

devaluation

or

the

for

Given

DJIA

the

would

quality

of

be

480-540.

the

stocks

that make up the Dow and grant¬

ing

earnings estimates, it is
difficult to imagine the DJIA P/E
dropping much below 15/1.

discount rate. It suffices to

my

If

the

above

calculations

turn

point out that in the very unlikelv out to be substantially valid, the
at
this
time
event of a monetary debacle a la market
(June 7,
1931, exchange controls and the 600+ DJIA) is selling at about

Primary Markets

Underwriters
Dealers

Bank and Insurance Stocks

Distributors

Christiana Securities
Houston

appear
block -the

(whether bullish or bear¬
the probabilities

fundamentals

of New Mexico

El Paso Electric Co.

MARKETS

of

limits

will

Therefore

by increased class and
tension, decreased economic

TRADING
Corporation

Southern Union

Gas

Co.

Pioneer Natural

Gas

Co.

■

PUBLIC

UTILITIES




the

other,

which

emergence

market
for

business vitality, rising frus¬
tration abroad and growing ma¬
and

Colorado Interstate Gas Co.

IN

true

marked

situation

were

money.

liquidity. This time has been dif¬
ferent.

postwar

thing" in 1956-57; defensive stocks

past, they have always been

optimism

the

resources

is

racial

in¬

the

are

dispatched by monetary stringen¬
cy;

in

(national

possibilities

What

the

on

exist

would

chance to explore all of

a

speculative

demise.

bly improving.

omy

to

is equally true for the stock mar¬
The current situation is vast¬

given

major distribution area in

a

which the market

after the period of maxi¬

danger

(1959-60)
and
as
longer term prospects were visi¬
mum

ket.

surprised by the timing and the

was

economy

Since then, the United States has
in
a
transitional
period

been

equities selling at high multiples
of earnings. Nevertheless, I was

apparent that the period 1959-61

*

1956-57.

regulatory; * depression resistant,
postwar era, oblivious that the
inflationary characteristics con*
had., entered not ;only
stituted the original, rationale' of nation
Changed, but radically different
our New Era, will turn out to have
and dangerous times. As nothing
been the culprit (the steel price
else, the steel price affair illus¬
affair was an accessory).
trated in bold relief, the distance
The Federal Reserve, by supply¬
America
has
already
traveled
ing the money (only in 1957 and
from the sunny days of 1955 and
1959 was the stock market even
the direction the journey is taking.
pinched and then not for long),
and the S.E.C., by preventing old Similarly, the merciless glare of
last
week's panic has exposed
fashioned
"excesses",
together,
irrevocably the clay feet of the
created an environment in which
the classic killers of bull markets, defensive-growth rationale of in¬
vestment.
It will probably take
tight money, bear raids and vul¬
several years before a new ra¬
nerable margins,
were
stymied.
tionale can be
formulated
and
Thus, for the first time in history,
generally accepted. Until this hap¬
psychology had a free rain. Unlike
pens, new highs on the Dow seem
the old days, optimism, protected
unlikely.
by the F.R.B. and the S.E.C., was

trading hours, is a bear" market,
nothing less.
/
For many months it has been

■

Unlisted Securities

Transcontinental
Houston Natural

Gas

Gas

Pipe Line Corp.

Corporation (Texas)
;!

!•

Y

Y

Laird, Bis sell & Meeds
Members

New

York and American Stock Exchanges

Unlisted Trading Department

120

WERTHEIM & Co.

Telephone BArclay 7-3500

Members New York Stock Exchange

NEW

YORK

Corporates & Municipal

BROADWAY, NEW YORK 5, N. Y.

WILMINGTON, DEL.
SALEM, N. J.

DALLAS, TEXAS

Bell Teletype NY 1-1248-49

PHILADELPHIA,PA.
SALISBURY, MD.

NEW HAVEN, CONN.

DOVER, DEL.
ZURICH, SWITZERLAND

Volume 195

Number

6168

.

.

The Commercial and Financial Chronicle

.

(2765)

the midpoint of its expected trad¬

there is no margin of overvalua¬
At its intraday low -of tion in suc1)la groups, as airlines,,
553 on May 29", the Dow had cov¬
"cement, shipping, rails " and rail
ered only about 75% of the esti¬ equipments,
in portfolios whose
mated distance between its high representation in these groups is
and its low. Thus, in all probabil¬ small or
lacking part of the funds
ity, further significant lows are generated by the sale of over¬

ing

and

range,

coming, lows that will be sub¬
stantially below the current price

valued situations

levelj Just when the bottom could

BY

situation.

conjectural.

course,

Expects Summer Rally and
October Drop

The

technical

ing climaxes (equaling the record
the

in

Fall

of

1929)

and two

buying climaxes crowded into less
than. - 40
trading
days
almost
guarantee a one-half to two-thirds
rebound before
weakness

basis,
carry

Supporting this

stream

a

of

promises of action from Washing¬
'

ton.

' '

'

•

.j

the end of Summer, how¬
ever, the fat could be on the fire.
It is, in my opinion, unrealistic
to expect that the flabby recovery
By

*

taken
>

itself
the

*

to

enough

down

to

the

last

at

years,

the ivory tower
growth and inflation

breached

Year

withdrawn/The
has

defenses

of
abrupt

a

in

recent

■

the

be

Model

Economy

ahead

will

be

by late 1963.—

New

moving

:

-

'.-..h (For a discussion of market and

business

prospects

1960s and
article

beyond,

in

the

Financial

So

the

on

.

mid-

April 19

see my

Commercial

Chronicle;

available

author.)

in

.

and

reprints

/ request

to

the

►

/,/, fy.,//

..

far, this discussion, has been

confined to the "market!'

;

and

stock

a

pects

of

market

the

various

pros¬

that

groups

make

up the market are at least
important as the prospects for

as

the
on

whole.

though
of

Therefore,

comments

these groups are in

they

order, al¬
necessarily be

must

tentative nature.!

a

Fractionalizes P/E
foi}
i
Groups
•

v

Respective

date, the brunt of the selloff,
as
could be - expected,' has been
directed against growth and de¬
fensive stocks selling at high mul¬
tiples of earnings. Further, this

tendency
as

there

likely to

seems

still oceans

are

persist

of water

yet to be squeezed out of this type
e>£ situation. If. the over-all situa¬

tion,'Unfolds

I

as

outlined

of' P/ET ratios
after

the

could

be

that

final

might emerge

lows

reached

are

follows:

as

Very highest grade growth stocks
High grade growth stocksGrowth

StancardSound

High

blue

*

/
'

•>

-

15/1

chipss—15/1

secondary
grade

20/1
20/1
15/1

*

utilities-—

Secondary growth stocks_L--__:
Non-growth v. utilities.—

*

25-30/1

companies—,

12/1

_

If

these ratios

istic
is

earning

are

applied to real¬

power

obvious ihat'

a

1

estimates,

it

banking,
life insurance, business
machines,
foods, electronics and utilities. Al¬
most without

stocks

in

exception, individual

these

groups

are

still

good sales where the tax problem
is
not.. prohibitive. *.In contrast,




Another
ment
power

987

encroach¬

proposed

gradually

on

public

distributors such

power

the

excitement

"grid" had
somewhat,

over

as

and*/

during

-

indicated

that

FPC

latc

wholesale-

in

engaged

rates

weakness

revived

.

plans

popular

of stocks;

group

encroachment

on

the

areas

of

public

customers

or

by the investor-owned
utilities. A good deal of publicity
had appeared in the past month

state

,

lines.
was

of

In

regarding

so

lend 2%

i'•if'

Federal

plans to

of

utilities
power

Southwestern

reported to be

opinion these adverse
possibilities have been over-dis¬
counted, and electric utility stocks,
in general, are in a buy range.
A

our

number

of

stocks

can

to "super co-ops"

money

obtained to yield 4-5%

petitive

i-

sold

pages

9

Rapid

now

be

Average

Growth

Electric

Electric

Growth

bond

yields,

haps

spell

be

demand.

last

5%."•••: \

27
21

2.7

3.2

18

3.3

3.7

.

-

6/1
2.4%

better,

or

The longer term

it

as

be

can

outlook,
also

gauged,

favorable.

While

the

v

:

^

CITY,-'Mo.—Postal In¬
vestment Company, Inc. has been
formed with offices at 3142 Broad¬

V

way

to engage, in
Officers

a

securities busi-.

are

Robert

Treasurer.

-VV

:

E.:

Bowles; Jr.; President, Richard P: Bowles; Vice-President;' and Robert
Ti
Childers, Secretary and-

"

-

'

r

;:

:

'

little, the electric utilities are
making an all-out effort to
push electric househeating. Since
the

all-electric

four

times

home

much

as

ing the growth of residential
of

electricity.

rapidly

than

product

Industrial

the
for

of

the

taxes

outlook
a

the

gross

because

automation

COLUMBUS,; Ga.

—

Life

of

and

still

in

interest

seems

Company

been-,:.
formed with offices at 1141 Thuv
teenth Street to
engage in a secu-^'

;

Amos,.President^ John:S. Amps,,
Vice-President, and Francis B.

•'

HALSEY, STUART & CO.
^

DICK & MERLE-SMITH

•

GREGORY & SONS

COURTS

Street, New York

Schwabach
was

name

of

ADAMS

&
&

E.

Company.
Mr.
formerly with H.

Company-.

^

June 13, 1962
-

*

LADENBURG, THALMANN & CO.

HI RSCH & CO.

7

NEW YORK

" WERTHEIM & CO.

HAWSEATIC CORPORATION

INCORPORATED

-

WM.

Opens

E. Richard Schwabach is
engaging
in a securities business from of¬
fices at 120 Wall

City, under the firm

-

/

>,-*

•.

E. R. Schwabaeh

INC."

?

>

-

King, Secretary and Treasurers .Vw

&

•

-

rities business.. -Officers*-are. John/.:/

Hentz

Dated June 1, 1962

an
offer to sell or a solicitation of an offer to buy these securities. The offering is
only by the Prospectus which may be obtained in any state in which this announcement is circulated
from only such of the undersigned and other dealers as may lawfully offer these securities in such state.

Shares'-"

E.

POLLOCK & CO.,

CO.

PECK

IRA

|

INC.U- -*

—

.

V

-

HAUPT & CO.

FREEMAN

&, COMPANY

J, C. BRADFORD & GO.
STERN

national

increasing

factories, etc.
disturbing rise

made

has

use

usage

.

in

rates,

favorable

continued uptrend in utility

.[Price 101.625% and accrued interest"

'

as

should also continue to gain more

This announcement is not

Trading

Trading.. Corporation

Schwabach

'

about

the average residential use, this
should be a great aid in maintain¬

Bonds, Series due June 1, 1992, 4%%

'

uses

electricity

\

Form Life Shares

R.

"-/'v,

of

a

KANSAS

First Mortgage

seems

now

(a Minnesota corporation)

'

i

far

so

rate

growth in output is slowing down

earnings.

Northern States Power

volume5'

compared

"'

$15,000,000

•

*

it

Thus

year's gain of less than
*

; / "

V-1

plus,

that, with a fa¬
air-conditioning
load,

.

-

hot

of

big

a

likely

10%

with

local

3/16
1.9%

22/

Utilities-

sudden

Despite

Yield

25

Utilities.

A

would

vorable

Average

6/1

individually,

Form Postal Inv. Co.

on a com¬

36

Growth Electric Utilities____

Moderate

19

with

Average
P./E. Ratio

n

3/6

with the index

to both volumes in

basis

13%,

this year of the past decade—per¬

exercise of its regulatory
are not yet clear.

any

Electric's

south.

appears

inter¬

move,

powers

&

intended

first

the

Gas

the electric utilities may show the
best increase in
share
earnings

transmitting

Public Service

Tampa

capacity has to be kept ready for
this

-utility industry
and to exercise its power to fegu-

December '/arid

April,

He

Commission:
the

of

factor in share earnings since idle

announce¬

its long dormant

resume

the

in

weather

by Chairman Swidler of the
Power

month

cool summer last year, with poor
air-conditioning sales, particularly

t he

disturbing factor

/recent

the

Connecticut Light & Power's 15%,
The utilities had a relatively

.

a

first

the

etc.

and

new

in

of that year.

Oklahoma

municipalities, REAs, PUDs, etc.
But

activity (which

level

Electric's net income gained 23%,
Carolina Power & Light's 14%,

nation¬

a

year

improvement during the bal¬

For

Federal
"grid" of transmission lines,

to be built

the

First quarter earnings for many
utilities thus made a fine showing.

wide basis to connect various pub¬
lic power generating plants with

of

contain

threatened

•

not

able

Washington.

the

was

low

a

of

the Federal Reserve

quarter of 1961) showed consider¬

shrouded

"guinea pig" for this
but the exact scope of the
FPC investigation and the extent

State;" a two-volume book by
Murray N.' Rothbard, was given
incorrectly.
The correct price of.
this set is $20. The two volumes,

large margin pf
as

time

downward mO^e

served

today's Chronicle, on
page ' 40,
through a misunder¬
standing on the part of tne pub¬
lisher, .D. Van Nostrand. Co., the
price
of ''"Man,
Economy
and

overvaluation -still exists at today's

prices for such groups

* that"

> at

profit-taking in this hitherto

V 12/1
-H.
Lower .grade^xychcalSLi—^L^^r:*---'-.
*10/I
cyclicals'::—'—_______

in secrecy in

been

across

1

are

had

at

was

est in the electric

market

balance
as

ance

plants

to

bearish

the

these

Federal

possible

ERRATUM

ness:

have

abtfve;- &nd the DJIA settles down
to 6 15/1. P/E basis, the spectrum

reached

Another possible factor was the
renewal
of
fears - regarding
the

"Businessman's Bookshelf"

which

To

very

in

doing, they not only would have
heavy tax advantage, but also
the benefits of ultra-cheap capital
funds. Moreover, the plans to build

in

very

or

off

somewhat,

so

a

occurred

or

section

was

of these ratios had

power

In the

In

market

elsewhere would completely alter
the schedule of probabilities out¬

year
previous. Of course the
gains in industrial sales may taper

held

now

utilities.

electricity than

more

Index of business

ment

for

Note: It goes without saying that
the outbreak of a full-scale shoot¬

lined above.

business,

private

January. Presumably, this adjust¬
ment was incomplete and general

World

domestic

in Laos/South Vietnam

the

by

10.6%

a

grid they plan to build themselves.

factor

quarter it averaged
the first quarter

over

business did well, residential sales

plants

new

the

market decline

first

of 1961. All major divisions of the

would permit the REAs to com¬
pete advantageously for municipal

a

occurred

j

war

the

•^7'"'/'' '• '

'/ -V.

the

about 9.5%

recently died down
investor-owned
utilities have initiated a publicity
campaign about the $8 billion

of the

moderate

occurring again. /•

ing

that

However,

opinions;

as meas¬

the

and

permanent

would

took

believe

firms issued

political im¬
peratives, no " intelligent investor
can
seriously entertain the possi¬
bility of a true > deflation ever

ured by the DJIA. As we all
know,
this is a market of stocks as well
as

the

given

-

Crisis

bottom

-

ways.

to

ber—as high as 45 in one or two
instances. Several investment

succeed, that the slump
,

ap¬

large number

a

plants

new

rather fantastic levels last Novem¬

reason

our

available, it

likely that

two

gaining
10.1%
in March while
large light and power customers

Some

years

will

is

by

rules.

ratios

output is currently run¬
ning about 11% over last year and

farmers

high price-earnings ratios for cer¬
tain rapid-growth electric utilities.

was

ures

required

going down, earnings
rising rapidly, thus im**

P-E

through the
local REA distributors (who 'are
currently buying most of their
power from the private utilities),
but actually there seemed reason

invited

Reserve Board

data

no

Another

valued and
bounds.
There viS
every
to expect that these meas¬ -exceeded 5%) there is no valid
alternative to equities. Simply put
will
.

normally

May 31st.-

on

7

when the
greatly -overhigh grade bond yields

general market

Washington to keep the recession

and«that

naturally

dated, accounting for the drastic
drops in some utility stocks around

the seventh
of
Century, a century: of
revolutions, social and
upheaval, the 19th Cen¬
tury mystique of bonds is beyond
revival., Except under the most
extreme conditions (such asob¬

massive tax cut, a massive deficit
and a massive effort on the part of tained

mild

25%

a

of these accounts had to be liqui¬

the

;
decade

rate

pears

grievous. The survivors are

In

within

accounts

While

collapse
been

in/- a blue funk. -However,
world is not ending.
!

push

bring

70%

sentiment

investment

which

rison

500

should

on

considerable amount of specula¬

the Federal

and the losses suffered by the gar.

swing.
New

set up

margin basis in connection with
offerings of utility common
stock through rights subscriptions.
These

level,
this,
perhaps-below, by, say,- the the" 20th
end of October, especially as the ■wars and
tax-selling season will then be in v economic
The

been

has tive interest because of the low
but reality has margin rate as compared with the

into

these

and

full

had

a

new

*

had

few -months.- This -in

should- be

DJIA

five

of continual

ness

a

•,

large number of
subscription"
accounts

"special

a

the impact on consumer and busi¬

in

Hi'"'

•

of

in

the

serve

the

was

proving
Electric

and industrial

The party is finally over. It

economy has made from the
1960-61
recession can;/withstand

down

existence

•

■

•

7

explain.
contributing factor

A

not: be

would

"figure

cal issues.

the

expectations of a $100 billion
collapse in equity values. Conse¬
quently, it is not unreasonable to
expect
that- business
will
turn

which

50%

and

reassurances

seemed hard to

have been

tensibly these

decline in the Dow Jones

too
much),;/ Of the 65-75% that is
invested, at least a quarter should
be committed to depressed cycli¬

will

move

a

Utility

recommend, as I have since
December, that at least 25-35% of
the equity portion of all portfolios
be in cash or its
equivalent (a

be expected. On this

can

ed in

been

in various parts of the country, to
build large generating plants. Os¬

are

to

the
Summer rally could
the Dow back to 650 or even

to 675.

be

renewal of major

a

The recent market debacle result¬

addressed to
most listed stocks and the higher

that the May 29 low will hold for
several months at least. Five sell¬
set

Utility P-E Ratios Sharply Reduced by Market Upset

,

These remarks

accompanying tabulation.

While prices of electric utilities

have

Average from 130 to 98
within a period of less than six
weeks, with a/ recovery (as of
grade
issues
traded - over-the- June 8th) to around 114. Of course
counter. The future of the typical the
way had been paved for the
highly promoted small'A. S. E.' decline by the earlier drop in the
and O. T. C. growth-glamour is¬ industrial
group, but nevertheless
sue
is depressing.
*
V
the violent gyrations of some in¬
As a general policy, I continue
vestment-type
utility
stocks

are

as

price-earn¬
ings ratios and yields is illustrated

in the

merits.

probabilities

attractive

market adjustment in

OWEN ELY

of

type

continued

and. dividends

compared with bonds. The recent

In other groups, steel,
chemicals, etc., the valuation pat¬
tern is not so clearcut, and each
issue must be judged on its own

is, of

come

this

for

in. earnings

make many of them

be immedi¬

can

in

reinvested

ately

the ,prospects

gains

13

:

BROTHERS

&

CO.

SCHWABACHER

&

CO.

-

14

The Commercial and Financial Chronicle

(2766)

Vice-President

NEWS ABOUT

Jay
and

Consolidations

New Branches

.

New OJficers, etc.

•

;

1

'>

■

,

V

•

the

in

vision.

•

S.

.

•

gov¬

S

.

'~'3vv-V,

/

3-,',;

Reginald - H.
Fullerton, Jr. were named Assistant Treasurers in the .municipal, ,7diviskm and' pension trust division^
respectively.' i,;"',) 7, ^ " •.1
;• v*
Andres

Roy

Revised Capitalizations

•

U.

.

as Assistant- Secpension trust di¬

appointed?

retaTies
'

J

and

By Paul Einzig

Ellis joined the Western
District of First National City's

Thomas W.

McMahon, Jr. has been
Senior Vice-Presi¬
-qf
the
Chase
Manhattan
Bank, New York, President David
promoted

to

dent

announced a June

Rockefeller

in

McMahon is

Mr.*

National Division in 1956.'He

,

u

Bank's branches in
i mid-Manhattan.: > :
;
of the

group

transferred

was

Metropolitan.

department

York, has announced that Gordon

the

to

L.

d

n

< a

made a Vice-President- in 1956.

Harry, E. Ekblom has also been;
promoted to Vice-President; -1 Mr.
Ekblom, who is in .the.:
United States department, is as¬
signed to the group responsible
for, the Bank's business in Illinois,
Minnesota, Montana, No. Dakota,

Mr.

urer

The

1959.

Bank

also

been

D,

•.

activities.
,

/ \

'

.;

,

'

\

■;

,

^ame slowdown' of ' expahsiorl irr t he
.881. 3,11?; ^V.iee-Presidont ,~m free' World" 'ifi 'gbTreral,: were
is^m. charge o^he,.pension gregtecl V/ithC triumphant! sneers
administration'deparnnent..
.;:: < 'from^ bbhind the Iron ^rtaiwt At.
f ^ ; aVj 1 w'ti* f '
they said, tfteu great
[
uiaenbuttei^ nas been crisig 0f capitalism predicted by
.

.

-

,

...

,

.,

^

nr-r,

j

1

nao.

'

Clifford

J.

Kendall

elected

President. He is also in the United

of

States department and is assigned
the district that handles the

had been

bank's

•

to

of, the

'Donald

Sev.mour

has been-an^

Tmsfea'

-

•

.

Lynch,

over

v3'.

retired, Assistant

Treasurer of the Chase Manhattan
Bank,
He

New

67

was

Mr.
1919

Lynch
with

entered

the

1960

11.

banking in

Seaboard

he

National

predecessor of

a

Manhattan.'
in

ment

June

old.

Bank, New York,
Chase

died

York,
years

At

his

retire¬

officer

was

Walz

have

been

in

it

Trust

was

charge

of
of

the

/Bush

Chase

Brooklyn, N. Y.

,

'7/77ffiT\* .-A
First
York
T.

National
on

Ellis

June 4
and

Terminal

Manhattan
,

,

,

:';;A

*

City

in

Bank,

New

appointed Anthony
George M. Lingua

Vice-Presidents

with

its

Pension

Trust Department.

77

[

*

*

elected

Vice-

Company,

New

York

after June

or

on

announced June 7. Both are

:

12.

.

consolidation,

the-change has lmt beeb and is
not-lifcely to be sufficiently pro-

^

•

.

effort) of-manyi tbousandsTo. seek
refuge m Hong Kong.. The fact

•

wheat and

Assistant ^VicerPresir■ of five shares of Security National..
flow
Edwin
J.
Draycott, for.one share of
securities;
Frederick
E.
Lyon,
:
.The resultant*; bank will have reduce the number of mouths that
Fifth Avenue office;/ Hector. M.
assets °f approximately $250,000,- have to
b?. fed prevailed even
MacKethan, Jrl, 350 Park Avenue;
John A. Schaffer, Union Carbide
sv;
...
I:' ',2 U.nder. all-uoportant
eonsidera-Charles C; Saunders, President tions of prestige.
office; John J. Schmid,, branch
of The Peconie
Bank, Will serve i.; Nor have the European memadministration; William E. Sunethe combined banks as Vice-Pres- bers-of the Communist
bloe much
spn, Time-Life office; and Anthony
charge
the Sag Har- ^0 boast about.- The* reeent sharp
Trapani, Canal Street office..

The+ ^®.lf"staryed

badly-

and }n~

S

Peconic..^ ^.

.

_

_

.

por' office.
Bankers

Trust

Company*
New
York, announced the. appointment
John

.

W.

rise in-the;price of meat and- but-

O'Brien

as

Assistant

the

in

ter

-

York

New

Biughamton,

N. Y.,

June

.on

1

Mr.

course

V

Our annual

utility stocks .'giving /extensive data

on

companies will be published at the
.free

'•

XT

New

heavy

par

n a IB a nk

IVrrv

o1

have

ac-

necessitated

defense
expenditure,
reducing the marpower

i

State

^

ducing consumer goods.- Actually
is

it

First

N

Y

Gommunist

the

Citizens .Bank

1113111 'leavl'y -armed.

write

or

And it is

improvement of the standard

.*

Raymond
H.
Jonas,
has! been
a Vice-President
and Trust
of

the

con-

stitutes another major obstacle to

.

Of living of the Russian people.

made

Bank

&

Hartford

Trust

National

*

T
J.

President
Bank of

<

Easton

of

Directors

.

Bank,

.

.

is

„

,

.Russia

f

•

a.

A

is^ somewhat

strange that So-

SfepuW'

complain

of

Mary-

Baltimore,

i v.'
of

lull the.free

G.

Meeker

was

he

that

Lawrence

H.

•

*

*

,

the

elected

.

-.

false

a

achievements

embarked

the

on

Abys-

sinian adventure in order to divert
attention
from
difficulties
at
home.
Quite ; conceivably
Mr."
nomic troubles* will be to embark
external adventure.

some

fact

The

that

within

progress

the

■

-

V;

economic

the

Communist^•

the feeling in the western countries

that

take

it

now

we

easy.

be

towards

ing

afford

can

Our

in

to

setback

own

overcome»

order

,

to

higher standard of livmore
important thap

a

fs
to

ever

for

pius

down

on

dumping its butter surthe British market. And

the much-heralded drive
wheat

jn

on

be

able to find

grow

maintaining

anfi

the

its

a

solution

time

same

inflationarv

V

minimum.

keenine

effect

to*

a

the de-

wheat shortage in

a

world,

and Soviet

Russia

is

,,:the Soviet Government introduce

:

expansion

our

steppes and
regions does not

to have prevented

velbpment of

free

-

the Asiatic

sub-arctic

seem

to

director: of -the-First National supposed to *:possess the second
Cincinnati, Ohio,
j - . - /.largest gold reserve. So why did.
*

world into

of. economic

boast

,

.

a

coun-

feeling of security. It was when,
owing
to
economic
difficulties,
Mussolini was no longer able to

-\T

•XT

1

-

^ 3,SllViil6

•

•.

Franklin

N. Y.

System to Branch Offices, Correspondents-and their con¬
nections in over 100 cities throughout the United .States and Canada.

The' fact that Communist

butter shortage ^hile Communist
is
Poland

Bank of

New York 5,

,

tries have economic difficulties of
their own should not, however,

,

•

.7:^'^.'>7:[

.

of

.

•

must

Gold
.

It
viet

National

Chairman

/

.

V

-

Warns Against Being Off Guard

Advisory Board of the Easton Of- Poland.
In any (case, there
are
•*fice of Maryland National Bank.
•
ample
surpluses, of, meat
and XH
*
other agricultural products: in the: '
•
•

Exchange, American Stock Exchange
principal Commodity Exchanges
;

•

Tr
Jr.,- fnrmpr
former

Willis

of the

Willis

Members New York Stock

Willie

National

™yla5I?.*
Mr.

LOEB, RHOADES & CO.

"

*

Maryland, was.elected to

Board

land

t.

.

MrTCennv
McKenny

the

.1

■;

'

the-

en?ure, that- the Communists do
not catch UP with us in the race

XS. S. S. E.'s Refusal to Spend

Hartford,

Co.,.

are

and prestige policy of their

despotic rulers.
v
:

to. re-

■

copy

power

victims .of

unbounded ambition of the bloc has fallen behind the amKremlin to establish communica- bitious plans should not convey
the

*

helpless

eC(UalIy

that "on

menace

the-Western -world

ruwL. RrZl^e'f .Perry,, tlon wlth.other planets that
of rlj;

the
the

Officer

powers,

to

in Soviet Russia todav

sUmers

and resources available for pro- Khrushchev's reaction to his eco-

'

;
:
York,

the

Conn.
•

same

Mercer

the

-

a

the

SS/ilMmteS

compendium of electric

June. For

-

*

A

Root,

atlo

Of

e s.

aggressive designs
$304,500' consisting of against the U. S. S. R. whieh are

forces

intn
mto

h't.f i

Bingham-, blame the Western

thereby

N

c o u

3 increase its capital cusing,them of

shares-of

proved

shows

Khrushchev, tried

supposed ;to

S

Union-

is not confined to

non-Ckimmuiiisf

The .Industrial

to

approval

Oren

Electric Utilities

Soviet

~3i;j-pahkmg -jDepartfnent o^ the that inflation
of

State

A




other products

"J**

approved

as

31,972

Private Wire

the. Tsarist

Under

m^me- chose.

regime the bulk-of the" population
was kept on -starvation level while

are :

value.

42 Wall Street

to projects aimed at achiev-.

.

yfam .The desperate plight of the >

chjto $319,720 consisting of

and

to divert-resources badly needed
for satisfying elementary reqoire-

conditions in China have tidn of its resources by its rulers,
greatly deteriorated during recent ; . Pius ca change, phis e'est la

30^450'snare3^of the par value of

CARL M.

■

-

Under dictatorship it is possible

Com-ment

.

;Named.

dents

ton,

call—1

av-

citizen for- having to cur-

erage

countries ^^outside the; world conquest/There is nothing
: 0n the admission the -Russian
public can do
bf the- Chinese Communist Gov- against such- -flagrant - mdsallbea-

Maass, President of Security Na-r
tional Bank, to become effective

Bank, of

end of

achievements

If°n:, Qurtain.

Bank, Sag Harbor,: L. I., N. Y; into
Security. -National -Bank
of

gave

95

the

over

needed af home were exported m
in the Bank's Metropolitan Divi- ;
by the stockholders of the institufn^^dlLThe^c^italfsl: 'svstem ?r<fer t0. P®y „inte^st on foreiS"
sion, Mr. Post at 350 Park1 Avel
tions, will be effected through;-,2 p? loans ralsed &r the PurP°se of
and Mr. Walz at 70
Broadway.j'*
an exchange of stock on the basis- ^
1
of face for the Pe- covering the cost of a huge army.

of

v.

oii

research. Does the satisfacfelt

tion

worse. -But;

'

branch

Soviet Gove

the

Kendall, who: The consolidation of '-'The;confiAeidr:^tcr^^

Assistant Vice-Presi¬

Presidents of Manufacturers Han¬

»

•

I
r<:,f
John R.

L. Abbett

;

space

r,ing-prestige or to military expen777^^:7 7'::\:77 In ^ny case,.the setback is not' diture in pursuit of ambitions of

.

Assistant Treasurer in

an

1955.

Mr.

by

prospects--of the- free world' dwellings?.

to.- justify,.the

■

department. Long Island has been approved by
*
*
*
v.; ,v y.'.V-'the Comptroller of the Currency,
Post, Jr. and Joseph C. ' if Was announced by Herman H.

•

He joined the Bank in 1941 and

became

an

Commuuism

.

predictions.-..

*: ./"-f

York.

dent, was assigned to the Bank's

Arkansas,

Louisiana, Oklahoma and Texas;.

York.

• an a

changed--for the

*3 *'; "" •' '■ have

'

methods and systems

in

New

of essential foodstuffs must have
made many people realize that it
i'3 they who have to pay the price
forr the unlimited amounts spent

*

nointed to the Board of

Morgan Guaranty Trust Company

to

business

a

c0ilapse

yeeentljr wjth, Comnjer.gia|i-

-ai?>

C

really approacn-

was

But

prices

Western canitalisfti was about in that sphere compensate the

been:

has

Vice-President

appointment of Thomas J. Concannon,
Jr., as 4 Assistants Vice-

in the

£ W*';would- be able to assume control,tail' Ms consumption of meat and
p^ani^^sdent'>.ot ,tne Beopies Withbuf haVihg to fight • a war. butter and for having to continue
5 ?i
A
^ u Beyond doubt, the immediate eeo- to live in shockingly overcrowded

w*

overall; mort¬
management/;
portfolio.
33.■■■■''

Marx

Karl

^Wepfrrtteljj Senwr

•

of diversionary exfernaT adventure.

some' sort

an

;;

and

'"y,'V

id

;

The4x1^ -*^albozjiLt' tKe

ic^,New_

Mr. Pattison comes to- the bank
from the Bank of Hawaii, Hono¬

;/v >i:

'.. could lead

n :

-

his economic problems

.;:.y .-;

•

..

raactfoir to

increase

ing real estate. and mortgage loan.;

gage operations
of the mortgage

the

executives m

--

\

Soviet space men.'

,

v

•

announced

Daniel,

^and Mr,; Gates /

account

u-

a

Tabling our economic: growth sans inflation*. Conceivably,' tha noted

Dickey,. Vice-President, in the ad¬ elected a; Directormf the Commerministration of the bank's expand-:, mal-Bank ©f North Ame

y::;.*

3

appointed a
will

with

to

itito

us

false feeling of security and to caasef finding # solution to main^

c-

E,
-

1957,-

Mr. Pattison

associated

be

j

^

Officer in charge of

promoted to Assistant .Treas-,
in 1956 and to Assistant Vice-

President in

has

Carrington

senior

are

lulu, Hawaii, where he was senior merged

Soqth Dakota and Wisconsin.
He joined the bank in 1950 and
was

Pattison

Vice-President.

r -

having economic woes should not, Dr. Einzigwarns, lull-

.

/Vice-Presidents.;'Klrushchev'S

Mr. Lingua came-to the Bank's

Investment Advisory Department;
in 1947 and in 1955. He was appointed an As¬
sistant Trust Officer in 1957 and
was assigned to the public utilities
in.
department the following year. In; an Assistant Vice-President
1951 he: was- appointed ' Assistant 1959.33L'
Treasurer^ and' in 1954 he was
promoted to Assistant Vice-Presi¬ Fir si National City Bank-, New
He

promoted Stan-;:.

.

He joined the Bank

dent.

.

rafusaf to part with gold wr
fact thatf amidst the buttar

shortage in Russia, Poland is dumping its butter surplus on the
British market. The fact that, the GommiitifSt Biod Countries are

/

t

>

too if imports and by the

necessary

;

1

*•

ley A.
Carri-ngton,
Robert
Fulton^ and Moore. Gates," Jr.

;dent in 1960.

a

;•#

y

of New York has

appointed an Assistant Cashier in
1958 and an Assistant Vice-Presi-

7v

charge, of

'i'rv

The United States Trust Company ;

was

Efnzig is puzzled* by U.S.S.R.'s

Dt.

,

}

Mr'.

Thursday, June 14, 1962

.

.

B. Kane, Charles Selinske
Schach
A.7 Van
Sfeeriberg

were

'a

the

in

ernment division.

.

-

-

NASHVILLE
riti€s

Inc.

has

-

Hale

Tenn

been'

offiGe3

in

the

Life

Towei?

to

engage

formed

and

in

a

Seeuwith

Casualty
securities

the^capitalist method of rationing husfness. Officers are R. Walter
elected
Vice-President iri the consumers of meat and butter by Hale, Jr., President and Treasurer;
commercial
banking department purse instead of spending some of peber Boult, Vice-President; and
Frowiek

has

been

*

of

the

Continental

Illinois

:

Na-

tional Bank & Trust Co., Chicago,
Illinois.
•
:7
' S :
.

its gold

acquisitibn of ade-

on

quate supplies?
-

There

was,,

and

•

still

*

is,

James I. Vance Berry, Secretary,
Mr'., Hale was formerly a partner

much in Webster, Gibson & Hale.

Volume

195

Number 6168

.

.

The Commercial and Financial Chronicle

.

(2767)

15

ments, service charges, the pay¬ rency. The United States has no
ment of interest on savings and
restrictions on the freedom of its
other time deposits, the acquisi¬ citizens to
use
dollars to
buy,
tion of new equipment; the adop¬ travel (or invest
abroad, nor does
tion of new procedures, and other it restrict
the acquisition and use
the Committee:
operational matters, Such analysis of dollars by citizens of other
helps management to concentrate countries. It is through the dollar
(1) A banking statute should
its efforts in promising areas in that most other currencies are
have -a dual goal of promoting ef¬
ficiency and "effective competition its search to improve its service linked to gold. Official foreign
to the community and thereby holders
in banking..
of dollars can convert
:
"
"
thqm freely into gold at a fixed
i2) Several of the present pro¬ improve its profits.
visions of the New Jersey Hank¬
Healthy
competition,
orderly price—$35 per ounce. Thus the
ing faw jre sQ' restrictive that growth, improvement of services, dollar has become a principal me¬
banks are prevented from achiev¬ control of costs, development of dium in which foreign countries
Study Committee chaired by Pro¬
fessor Chandler of Princeton Uni¬
versity.,
I would calf attention especial¬
ly to the following conclusions of

By William F. Treiber,* First Vice-President, Federal Reserve
Bank of New

York; New Yfirk <QUy

..

New York central banker's review of pertinent banking, monetary

•

and International dollar exchange problems ranges from such purely
domestic banking structural matters as ^bigness" in banking to the
recent entry of the Federal Reserve into foreign exchange operations.
Treiber refers io Che fact that a

Mr,

bank and

ing

banking system

a

to

must serve society and meet its changing needs or perish, tie is not

Adverse to

improved

a

so

other provisions-promote monop¬
oly power, and inefficiency.
1
;
'lv ; t{3) Certain provisions lot #ie

long as competition is left unimpaired. He prods bankers

to do what

they can to improve their efficiency without recourse to
legislation and, also, to make minimum recommendations which can¬
not be

accomplished without legislation. Description of cooperative

includes

Agreement. Not neglected 'is the reminder that fundamental

problems -

causing our gold-outflow must be solved and that thsy cannot be
taken care of indefinitely by technical foreign exchange operations.

some

of the im¬

.

law dealing With the establish¬
ment of branches should now be
amended in order Co promote ef¬
the Federal Reserve Banks stand
ficiency and competition.
»
:x
(4) A new committee or com-, ready to. share their knowledge
mission .should be appointed and and experience with the banking
given adequate time and resources community and to render counsel
to make <a thorough analysis of and assistance.
the banking situation; mad pros¬
National Economic Goals
pects in New Jersey and to rec- *
Now let us turn from the con¬
Sys¬ ommend appropriate changes in
sideration
of
the
problems
of
the Hanking Caw.
~
v *
*.

insight Into the mandatory workings of the European Monetary.

an

are

portant objectives for the banking
industry.
If achieved, they will
assure that the industry will con-?
finwe to, meet the needs of the
society it serves, and will change
and
prosper,
as
that
society
changes. In this process of change,

*

bank's enlargement to a point where its efficiency is

international effort to improve the world's financial system

staff—these

a sire that will 'enable - them
be reasonably ef^cdentj while

;

Service to Society

A wise

man once

which the

said that nothing

is certain but change,

j&ach year
we aee, or feel, change in burselves. We see change in the sys¬
tems

wo

cre¬

ate. Our

sys¬

to

the

And those

needs

and as¬

pirations are

sible.

ever-changing.

those

It

>;

tion

of

some

of

the

Unless the banks perform
services well they have np

Dual
systems, that failed in this respect ;
and therefore vanished from the banking

Goals:

Society

that

system

is

There

>

wants

by

their

official

reserves

and investors who hold dollar as¬

sets for working balances and in¬

vestment purposes.

.

strength of the dollar is
by the flow of money
payments between - our country
The

affected

broader

and

the

flow is

rest

of

the

world.

a

provides

brokers and financial institutions

r

.

..

.,

For banks,

qualified commission of fur?
ther steps to promote these goals?

Firm

Trading Markets in

.

(a) Operating Utilities

also taught that complete freedom series p£ programs, that helps,
;
Scope of Remarks
and unrestrained competition can them to grow? To consider but
one
facet of operations, do you
destroy,
Thus society seeks to
My. discussion contains three
•
promote efficiency and healthy know their costs? „■ ;
objectives:
competition.
Hoes
pur
.current
Cost Analysis; A careful analy¬
V (i) fo make.a few observations banking
structure promote these sis of costs on a functional basis
on the structure of the commer¬ dual
goals? This question is beiag is essential if management is to
cial banking aystem and on bank asked
frequently and in; many make constructive decisions, c By
operations;
*
•
.
.places....
..' b.'.
■:
analyzing such factors as. the cost
lv
(2) To comment On • the role of
of servicing deposits, the cost of
international financial factors in
New Jersey Banking Structure
; processing Joans and investments,
the achievement of bur national
This question was ; Osked lasl and jhe- major items of general
economic goals; and «. v - v ■ i .
specific
elements of
year about the banking system in overhead,
(3) Xo reyiew the cooperative
weakness or strength in a bank's
New Jersey when. the Commis¬
effort being made to improve the
operations are revealed; and a
performance of the international sioner of Banking and Insurance factual basis, is provided for con¬
financial system — an effort in appointed
a
Branch *• Banking sidering policies regarding invests
!<
■

.

.

(b) Natural Gas Companies

„

i

,

'

'

'

'

'

.

-

Transmission, Production

,

& Distribution

WIRES TO

PRIVATE

Glore, Forgan & Go.

Chicago
Gunn, Carey & Roulstorr, Inc.'
Cleveland.
Schneider, Bernet.& Hickman, Inc.'
-

Dallas

G. A. Saxton

Bosworth, Sullivan & Company, Inc.

&

Co., Inc.

Teletype NY 1 -J 605-J 606-1607

Denver
,

Underwood, Neuhaus & Co,
Houston

,

Crowellj Weedon & Co.

52 Wall St./New York S/ N. Y.

Troster, Singer & Co.

Los Angeles
/

Philadelphia

Member New York Security Dealers Association

WHitehall 4-4970

Hess, Grant & Remington, Inc.
'

The

influenced by many

.as¬

a

Efficiency of Operations^ There
banking services of wide scope
and high quality • at reasonable are, of course, many -things that
banking system that we know to¬ cost, available to all persons who bankers can dp without legisla¬
day.
Unless they serve society ;haye need for $bpse. services. To tion to improve efficiency. * The
and keep up with Its needs they, accomplish this,;, .increased, effi¬ greatest *. opportunities for v imtr
too, twillpass .away.
.Thus, as ciency must, be a constant .goal. prpvement probably do not re-;
commercial. bankers and as cen¬ History
has
demonstrated that quire.. any legislation.. Are they
tral bankers, we are under jeonnot only
Competition fosters efficiency by j. using their resources
tipumg pressure tp improve, the assuring the broad availability of. thcir bnancial resources but their
ways in which our systems serve such
seryiees at minimum < cost human respurces-r-most effective-:
the peppie,: rr *
,;
'
History, on the othjer band, has ly? 3D,q they haye a program, ojr
nothing sabred
about the economic system or the

•

in

obviously have placed their faith
in the strength and stability of the
dollar; the same holds true for
the innumerable private traders

term equilibrium in the flow is
important for the economic
strength and .development of the"
United States and the rest of the
world, if we are to have vigorous
reasonable number of choices of
terns and thus undermine growth growing economies at home and
alternate
banking facilities, 'at
itself. Nqr can we have, over the elsewhere in the free world, there
various size levels, for the entire
must be a system of international
long i;pn, ma?.imJ4J?) practicable
range of banking services, at rea¬
employment at home unless we payments that permits countries
sonably convenient locations with¬
to fm.ahqe' the goods and services
have ja jstropg dollar in internain meaningful market areas.
they Exchange with a minimum
tippal,.markets.
My question is: 'Would it hot be
of risk and cost, whether payment
in the best interests of banking
is made in cash or on credit;* to
Dollar Key Currency
...ffor bankers) to- recommend
The United States dollar has attain that goal the major cursome minimum improvements in
Continued on page 61
become the key international cur¬
the Blanking Haw at this time in

just ctaim upon iociety for a fi¬
nancial reward.. But when v the
enough %h a t
Wm. F. Treiber
services are of a type that meet's
institution
the needs and aspirations of the
or system
serve those who have a proprie¬
community, they merit a reason¬
tary interest in it. Over the long able price-r-a reasonable return to
run
a
particular ; institution or the hanks. .Thus bankers must
system must serve soeiety and continually ask themselves the
meet its changing needs; if the question: What kind of a banking
order to move forward toward the
institution or system does not do system will best serve the public
dual goals of greater efficiency
so, it will perish. History is full interest and, therefore, best serve
and effective competition, and for*
of evidence of economic systems, the long-run interest of the banks
you to support an objective study
pf governmental systems, of social themselves?

'

dollars

.

the

an

earth.

strong and stable dollar, is
for .a smooth working
international payments
mecha¬
nism. Foreign countries holding

fac¬
tors—not only by what our people
pects of our economic system and sell abroad and what they buy
the role of monetary policy. Our
from .abroad, and by the policies
national economic goals include:
of our government with respect
ice
is 'seriously
(1) maximum sustainable to
limited
when
military
expenditures,
eco¬
banks are prevented from achiev¬ growth;
nomic aid, tariffs, quotas and the
(2) reasonable price stability;
ing a size that will enable them to
like, but also by changes in in¬
/ (3)
be reasonably efficient.
maximum practicable em¬ terest rates and other business
- ^
In addition, I would make one ployment; and
factors here and abroad. Long-

hot

is

individual banks to the considera¬

A

necessary

acquisition of such
goods and services by consumers:
observation and ask one question.
(4) equilibrium in international
By performing those services well
the system provides a financial My observation is that a banking payments.
system. appears to function bfest
reward for those who, through
:, These goals are interdependent.
when no one bank overshadows
their labor or their capital, help
For example, sustained inflation
to make such performance pos¬ all others, and when there is a would
soon
distort growth pat¬

needs hn<t £s~
pirations of
men.

Reserve

Recommendation:. As
for
my
Purposes of Bank System: Our
own views on the banking struck
commercial banking system seeks
1 • Would emphasize
the
to render a yariety. of financial tee,
services—to provide society with thought expressed- by the Committeer—-that the capacity for serv¬
an efficient mechanism for

finance

designed

moot

Federal

actively engaged.

money

political,

are

is

payments,, to finance the produc¬
tion and distribution of goods and
services by businessmen,; and to

tems, whether
tbey be cconnmie, social
,ox

tem

hold their monetary, reserves.;

-

,

74

Reinhoidt & Gardner
St. Louis

Stewart, £ubankS| Meyerson A Co.
San Francisco




-

.

^

'

Trading Markets in

Trinity Place, New York 6, N, Y.

HAnover 2-2400
.

Public Utility, Natural .Gas and Industrial Securities

Teletype NY 1-370; 377; 378

.

16

The Commercial and

(2768)

Financial Chronicle

.

.

1962

Thursday, June 14,

.

v

Steel Production

1

Steel Buying Upturn Seen for July

Electric Output

The State of

steel

Index

Auto Production

TRADE and INDUSTRY

Business

point to

events

published by Harris Trust and
Savings Bank, Chicago.
Businesses plan to increase their
,

_

^

capital spending
1961,
according

.

McGraw-Hill survey of plans for
'

plant and equipment, the Harris
publication pointed out. The survey
implied
an
optimistic
$5
billion rise in capital

first

the

tween

fourth quar-

and

this year. Federal

of

ters

outlays be-

budget

expenditures are expected to climb
$3.5 billion higher in fiscal 1963.
Stepped-Up Consumer Spending
{«
is

pnncumpr
consumer

evnerted
expected

«iqn
also

to step-up

his spending, as he has
doing for the past year. Per¬

been
s«.r.«.
sonal

mnime
income

level
level

a

is

year

rising at

ago

from its

7%

,v„

up

l

v

.,«,m

has
nas

ana

iln

been

oeen

iiw(bu

M

with ris,V1M1

in the past year

reported the
Baremeter. The savings rate has
changed little during this period.
A

of

income
purchase plans
by the Bureau of the
Census in April points to a consurvey

expectations

consumer

and

conducted

tinuation of the rising sales trend.
About

25%

viewed

of the families inter-

their; incomes

expect

be

higher in
5% anticipate

a

to

year,:while only

a

machines, refrigerators,
during the next
rose appreciably
for

few

months

the

first

time

in

this

recovery

Purchase

plans for used
during the next six months
highest level in the history of the survey.
/

cars
are

at the

In

summarizing present business
the
Harris
Bank

conditions,
pointed

of

the

spend is

a

the
MIC:

stockpiles totaling almost 2.1 mil-

out

that

the

£

average
measure

economy

is

continuing to push upward with
new
highs being established in
of the broad indicators
business performance.
many

of

By late

discretionary

1961

advance, climb-

20% between early February and late May, as car sales
climbed to

a

seven

ron

in-

j—,

Additional output has been

come

since 1954.

facturing climbed
January, and are

a

manu-

full hour since

now

running at

the

highest rate since 1955. Further output increases will
require

movement of families into higher
income brackets have provided
*ke stimulus to increased consun}er spending in the postwar
Period, points out the Harris pub—
lication. The present trend in per—
sonal income and purchase plans
of families suggests that consumer
spending on goods and services
wd* be one of the dominant forces
leading the economy into higher
gr°und throughout 1962:
A:

.

Surveying the postwar gain in
incomes, the Barometer of Busi¬
ness

stated

that consumer

Bank

show

an

sizes

Preliminary

ago

year

cities of the United States from
which it is possible to obtain
weekly figures will be 12.7%
above those for the corresponding
week last year. Our preliminary
totals stand at $30,629,944,222
against
$27,173,069,086
for
the

tlv? summary for
Week End.

(000s omitted)

,

Chicago

aeuveries.

gt

gln'sTs

1,355,594

cuy

have

mon

-

declared,

•

+

Week

Ended

June

9,

this

9.2

;.

outDut

ieveled

off

against 1,586,000

Production

this

year

(*116»1),

27.0% above the

or

concludes

for

week to

be

and South West

meeting

1962,

of

as

Ingot

per

same

Cleveland
Detroit

and lead

they

,

are

are

lower;

higher..""'

on
-

76

Chicago

87

Cincinnati

consumer

units increased 70% between 1947
and 1961 while the consumer
price

86

St.

Louis

89

Southern

More¬

over, the market for most goods
and services has been broadened

Western
Total

as

*

Index

weekly

101
—

97

84.8

of production based on
average
production for 1851 - 1959.
'

.

i

JOS€PH

S/STOUT

v

Diversified Closed-End
Company

Second Quarter Dividends

1962,

Record Date June 19,1962

regular quarterly divi¬
cents (27c)

of twenty-seven

share

on

the

32 cents

Corporation's

This dividend is

on

a

share

the COMMON STOCK
Payable July 1, 1962

67V2 cents

a

share

on

the

$2.70 PREFERRED STOCK

CENTRAL AND SOUTH WEST

Payable July 1, 1962
65

cad¬
•• • ••/

Companies in U. S. metalwork¬
ing industries in the first quarter
appropriated $1.2 billion for rcapital spending, reported The Iron,

69
109

-

7,

Secretary

Metalworking Industries Surveyed.
On Capital Spending Plans

82

Distribution

June

LEROY J. SCHEUERMAN

Week Ended

Greatly Improved Income

Corporation at its

on

Wilmington, Delaware:

mium

June 9,1962

rjy

Age.
This is

an increase of 46% "over
the $800 million set aside in the
last quarter of 1961 by these same
industries.
.

The data is based

on

the latest

quarterly survey of metalworking
capital appropriations conducted
for the magazine by the National
-

Continued

on

page

63

'

:Vroe' Pr®8id«nt and Secretary ;

•

CORPORATION

num

Index of Ingot

29,1962.
'">7•

payable August 31,1962, to stock¬
holders of record July 31, 1962.

in

Production for

to stockholdefs of record Jime 1

v

A

Common Stock.

-by

follows:
*

a

dend

r

since the last general/change ;

with

Production

held

declared

brass mill prices,1 the nickel :'
price "has •dropped;* the" tin price ""
Districts for week ended June 9,-.has gone
up; quotations on alumi-

index

on

stoxik' Of the ^Orgd;:ratioh,payabieJulyl4, 10621

The Board of Directors of Central

nrecedinff

the

dividend

declared

Investment

production

about

a

was

*. the. -capital

Dividend

the

1962

share

wotfJiaraticn

of metals used for alloying. All*
changes are in the range of-frac.- *
tiOns of a centrl)er pdundr*' ''

pe-

June 12,

of 12c per

last

JzT
for

-/

gommon stock

ations in the past year in the costs

June 9 amounted to 49,761,000 tons

Investment Company

^ri-Roantinental

ket, brass mills have made broad
price changes to reflect the fluctu-

through

J. F. McCarthy, Treasurer

.

v

n?ne conslcutive weeks

looked

cents

aiiuiiiuuiiniiiiiiiiniiiiittiiitHiiuiunHiiiiNHiiiiiiuiuiiiiiiiitauiiiiiiiiiniiuiiHUiiii^

market is still
price cbmposite
on
No. 1 heavy melting grade
slipped 34 cents to $24.83 a gross
ton, an eight-year low.
In the nonferrous metals mar-

tons (*85.1%), in the week ended
June 2.
♦

Dividend of seventy-five

A

.

The steel scrap
in decline. Steel's

1962

ended June 9, 1962, was 1,580,000
as

It

Mining

Co., Limited

($.75) (Canadian) per share has been
declared on the Capital Stock of this
Company,
payable September 10,
1962, to shareholders of record at the
close of business on August 10, 1962.

the Association '

shares of

tonnage.

According to data compiled by

tons (*84.8%),

and Smelting

On
a

(33d> per share on the com- A

Levels Off Last Week

outnut

week.

66




cents.

|

^

cJ

fr0m

+12.7

472,398

DIVIDEND NO. 91

Hudson Bay

Nine Weeks of Decline

,

NOTICES

DIVIDEND

Dividend No. 155

-

_

week afteY

3.5

+

777,989

Congress Street under the man¬

;

quarterly dividend hi thirty three ?

•

After

Leith
at

office

branch

NOTICES

England Gas

Trustees

I

v

Chances are thatangot productmn m. the weeks ahead will.be
s°mewhat higher than the rate^ of
0 er e
y 3 'lties*
/
" Output

a

agement of G. Sterling Grumman.

'COMMON DlVIDEkD. NO. 61

The

,

market, as possible, by quickening

1,068,000 + 9.3

876,451
516,020

50

opened

and Electric Association

Buyers

-

S

1,402.572

has

A diversified closed-end

New

%

1,167,000

—

Philadelphia

Burgess & Leith Branch

The Dominick Fund, Ins.

of their June ;v;\I

'June shipments will -be
about 10% less than last month s.

%

1961

ability

families moved up
the income ladder. Consumer
units
with
incomes under $4,000 de-

UIVIDEND

ofdecline. Steel estimated producNew York__ $16,879,397 $14,859,045 +13.6 tion at 1,586,000 tons, unchanged
1962

Pittsburgh
Youngstown

considerably

once

.

of the

some

Buffalo

one-third.

some

„Qulf
net

478,000 bar¬

BOSTON, Mass.—Burgess &

Coast area to Ohio with a daily
delivery capacity allocated to cus-

schedule
and

to

industries.

most

subsidiary's

rels of oil and condensate.

tending from the Louisiana-Gulf
nv,:.

.

improvement in in¬
during the postwar period.

by

for

-

the continual

rose

re-

figures

comes

index

in

and./Texq§

cubic feet of gas and

Headquartered in Owensboro,
Ky., Texas Gas owns and operates
a natural gas pipeline system ex-

steel

the

inventory

being trimmed by companies of all

84

of

semi-annual

Consumers are starting to shop
| payable" July 15i .1962 m Ahafo*,
compiled by the
deagain ofor the best deiive^ prom^ ;
sab,elcin rhC
I holders of record, ar the close oi I
on
telegraphic advices from the
® they can get, Steel said. Steel- *
chief cities of the
| business June 26, 1962. ; "
|
country jn- makers may
rebuild stocks .1 of
dicatel that for the week ended semifinished .. material
to make
B. A. Johnson, Treasurer J
Saturday, June 9, data from all themselves,as competitive in the .,
I June71 mi
V*
A -'•* \
a

North East Coast—

income

-

1?®% f°r the 12 month period be-

in

di;eds of their customers are telling them not to ship at specified
times in June, July, or August.
"lVhether July is better than June
will depend on who yoiir customers are," said one mill.
The downtrend in steel shipT
ments continues with inventories

_

clearings this week will
increase compared with

to

mean

plants

^

The

?!r™dbeginning June 1, 1961 to

tonpage to July are talking: about?■>> §
pushing * some: July tonnage into
I

1?

12.7% Above 196! Week*

maintain increasing
outlays on
goods and services is evidenced by

The

a

to shut down for their duration..
tomers during the 1961-1962 heat¬
Steelmakers reported that hun- ing season of approximately 1,515

who deferred

'

,

a.ddition?l workers, sug- riod through June 10, 1961.
The
Institute

future d™p 'n the rate
unemployment, the Harris Bank
opined.

of

line

area.-

ginning June 1, 1981,

in

softness

metalworking

stitute, production for the week

hours worked per week in

plant

and all employee vacations at

incomes

average

the American Iron and Steel In-

average

pilot

.

accom-

adjusted

the

c,ome jn,cre?sed somewhat faster adjustment, Steel said it also
than dld disposable personal in- fleets the growing tendency
S1-npp 105:4
,.®
pnrnp

plished through improved productivity and longer hours of work,

Seasonally

off

Although

Steel Production Data for the

Employment has increased only
moderately in the 1962 pickup.

to

ward from 105 % for the 12 month

The first

market is due mainly to

million annual

rate in the last three months.

entitled

are

lg63 Chevrolets were scheduled to.

m-

Discretionary

earlier.

years

June 9—

ing over

Coast

inst*tuuonaA investors.
,
production for the 12 months end¬
The debentures, priced at 100%, ed March 31, 1962 was 16 billion

same

nrndnotinn

when production starts

Principal money centers follows:

ilk Automobile propaced the

the

at

ear

am°unted to $135.3 billion, Flint, Mich., last week.

come

industrial production has recorded
monthly
1%
rises
following
a

imS
duction

when

Louisiana

the

"

ir.vpcfr.rq

pmiaiPfi

same week in 1961. Our compara-

g

carried

loan

jn

compared with $89.7 billion seven

Despite a 30% decline in steel
output since the end of March,

TorZjJ'.

inqfitiitinnal

That'* nearlv double the

ihev

amoun+

mortgage payments, home-owner
taxes, rent, insurance).

^Pclinb*^''"IClearihgsIncrease

and television sets

cycle.

to

ux

This marks the initial public of- tion for and the' • production of
fering of long-term debt securities natural gas and oil, primarily in

the'6 7 million unit* py-' sinking fund beginning on August
by the National Industrial Con- n5cfpd
for
1'qfio
Another
two
D 1965 sufficient to retire the enference Board, discretionary in-th , t
*_
d
w_it
tire issue by maturity. The debencome consists of income available
ks are on oraer wait ^ are.
t refundable for a
to consumers after deducting esA
nroduetion
stops:Period of five years at an interest
sential
outlays
(food, clothing, .nto the final lan automakers ^re cost of less than 5% per annum,
utilities, transportation, medical) frv;nff +Q get pilot lines started but are otherwise redeemable at
and
major
fixed
commitments Si(fr than usual so that thev the option of the corporation at
(installment
debt
repayment, can do a fas^er debuefffne ioh any time at prices scaling down-

Specifically, plans to purchase
washing

of

XHUicdixuii

ability

proved

consumer

Rising

ingincomesM^^^
9%

indication

Another
Aiiuuiei

annual rate of 8% for

an

the past few months.
Retail sales moved up

steel

nave enougn steel

_

month s start on the 1963 cars.
0f Texas Gas, the outstanding debt
im-'' -2 °,nvn?A V* !!e3T01?/ having been placed privately with
fill

in 1961.

31, 1962 ap¬
of the corpora¬
tion's total sales were' made for
resale in interstate commerce, 52%
being made' to 68 public utility
distributors serving communities
Louisiana, Arkansas, Missis¬
sippi, Tennessee, Kentucky, Illi¬
nois, Indiana and Ohio.
The
company's wholly-owned
subsidiary, Texas Gas Exploration
Corp., is engaged in the explora¬

Read
&
Co„ Inc., New
City, heads an underwriting
group which is offering $40,000,000
of 5 % debentures, due June 1,1982
of Texas Gas Transmission Corp.
^
^
York

hand and on ord&r to complete
1947 to 28% A
*nd3

creased from 8% in

During the 12

months- ended March

in
Dill

incomes in excess of $8,000 in- on

Predicted
Thp
The

Debens. Offered

then, the car companies
only■ fill-in orders and
mills will continue booking tona rate equivalent to only

11% over of his discretionary income, indithe
latest cated the periodical. As defined

by
to

Transmission

Until

50?utoma^
AutomaKers

•

proximately 93%

will place

creased from 63% to 31% in this
period while consumer units with

of future
continuation of

a

upswing
at
least
throughout 1962, stated the June
'
issue
of Barometer of Business
current

the

buying

million cubic feet.

TVwrjq Pnq
^CAaD vJctu

in
when

upturn

zine said this week.

Failures

Commodity Price Index

Most economic indicators

modest

a

next month
automakers start releasing orders
for 1963 model runs, Steel maga¬

Retail Trade
Food Price

for

Look

Carloadings

;

-

>

<

Broadway, New York 6, N. Y.

Volume

195

Number

6168

The Commercial and Financial Chronicle
„j

enthusiasm

The Market... And You
BY

is.

market.
To

to

WALLACE STREETE

absent

from

the

try to lift its profit margin
more respectable level — it
1.6%
of sales in the first

a

was

cost

reduction

has had
this week
in

groping for

were

to

as

new

bottom

a

further the

depress

list is badly oversold and entitled
to at least a technical rebound.

pressure moved

But

items

that have been heavy throughout
the market break, such as IBM,

LeVind, Vice-President of Blyth & Co., Inc., was elected
President of The Municipal Bond Club of New
York, succeeding
Alfred S. Mante, of Smith, Barney & Co., June 8. The election

there

is

change

a

in

attrition

in these issues is
Meanwhile the selling clearly
dire, H particularly4 IBM1 has the upper hand. Volume fig¬
which is close to selling at half' ures ^have
been
confusing, with
of its peak price, while Polaroid.' turnover
both
expanding
and
already has lost more than.' half shrinking on easiness and acting
of its value from this year's peak.
similarly on rallies.
In the in¬
In the case of the latter, the de^- itial
stages of the break the rally¬
cline is not a recent development ing efforts
produced the higher
.

since the shares sold up to 261 in

turnover.

Then

1960,

calmed

down

dropped to

,',

Electronics Hit

Electronics, which paced what
rallies have been staged since the

May 28 debacle,
under

the

forced back

were

new

with
showing

pressure,

their

price history also
sharp corrections. For some, the
price erosion also is not a new de¬
velopment.- Texas Instruments

where

1958.

And

that

harsh

correction

rather
from

it

hasn't

week—another in

blue

clearcut

Mondays

peak that

a

was

optimistic.
Litton
to

the

v

is

of

y

that

have

peak value.

It

posted its sorry record by falling
below 80

for

the

1960, .against

.

better than

165.

The

of

peak

giant of in¬

dustry that also is selling at less
than half of its peak,
a

in this case
peak, is U. S. Steel which

1960

had

reached

103

a

der 50.
In

the top
price tag

at

recently has had
the

face

What

bright spots

wonder

that

glum. V, The

and

retreats,
Wall

is

Street

in

of

consolidation

can

better-than-average price
might be expected "when
the turn finally comes."
action

There,
around,

any

be¬

worthwhile

Rally (?)

The

more

students

serious

have

possibility
since

in

of

many

not

of

the

ruled

market

the

out

rally
spots the general
a

summer

build
it

and

■

up

encouraged

issue

is

been

suffi¬

hint

to

that

candidate for

divi¬

improvement later this

year.

a

Potential

Improvement For An

Electronic
There

Issue

divergent
views
which has had
trouble
carrying its
expanding
sales down to the profit column
over

for

were

Raytheon

time.

some

to

appear

The

make

company

Interesting Retail Item
its high and its
low,,
Interstate Department Stores lost

nearly half of the peak value and
hovering only a handfuL
of points above the low. Conse¬

something

did

improvement in

for

year ago.

of

a

Manage¬

indicates that the improve¬

persisted into the second
so

a

good

the

other

is due

report

the first half. Unlike

some

of

electronics,

Raytheon
never ran
to the excessive price
action common to the group, since
its profit troubles were so well
publicized.
Hence, it hasn't as
much to atone for

now

that

picture

ago.,;

V

.

''■<

■ '

;

.

over-

into the discount field. From less
than $66 million, sales
jumped in
1959 to above $90

than

$114
and

million, more
following

million
more

the

than $165 million

Cruttenden, Podesta Adds

ex¬

DENVER,

this

picture

and

tenden,

results

was

U.

reported last year. Meanwhile, the
shares are available at less than
12 times the indicated
earnings.
"Shelter" Issues

being made of various

was

items, such

convertible

as

selling pretty much

are

in line with their inherent worth
but still can offer
capital

gains if

stocks steady and start to
work back up the hill. There was
common

also

much
being made of the
values available in the
utility sec¬
where
sales

tion

gains, if not
spectacular, nevertheless are defi¬
nitely steady and profitable oper¬
ations

last

business

event

an

the

are

general

does

to

feel

letdown
in

occur

if

any

such

the. im¬

future

despite all the
indicate it shouldn't

Another popular chore was cull¬
ing out the quality issues that have
been

more

successful

in

fighting

the

downtrend than the glamour
issues of the last couple of
years.
In the blue

chips, Jersey Standard
Oil,
Chrysler,
Swift,
General
Motors, Texaco, AlcOa and Cali¬
fornia Standard Oil have been the
ones
cited the
most.
The
pre¬
oils

of

in

the

list

correction.

is

V

•

,

;

/

[The views expressed in this article
do

.with

\ T

,

complete

not

cide

They

investment facilities!

necessarily

ivith
are

author

those

at

of

presented

any

the
as

time coin¬

"Chronicle."
those

of

the

only.]

Reynolds Member

LOEWI & CO.

Of Nat'l S. E.
Reynolds
&
Co.,
brokers,
120
Broadway
with
offices
in
37
cities, have become members of

INCORPORATED

225 E. Mason St., •
Members: New York Stock

SECURITIES
Milwaukee 2, Wis.

Exchange*Other Principal Exchanges

The

National

was

INVESTMENT

announced

Taylor,
Stock

Stock

Exchange, it
by Lawrence H.
Chairman. The National

Exchange,

6

Harrison

Street,
Manhattan,
opened
for
trading March 7 of this year.
.7.1

Teletype:
Viones:

MILWAUKEE:




BR

6-8040

/

CHICAGO:

ST

mi

405

2-0933

S.

Dubensky Opens Branch

Seymour Dubensky is conducting
a

securities business

at 33

from

offices

West 42nd Street, N. Y. City.

James

With McDonnell & Co.
(Special to The Financial Chronicle)

DENVER,
Colo. —; Jerrold
G.
Thompson has become connected

Podesta

& Miller,
524 with McDonnell & Co., Incorpo¬
Street, Mr. Cushner rated, Tower Building. He was
formerly with the Denver- formerly with the First National

Seventeenth

this year are projected to around a
dollar a share more than the
$1.77

Much

—

have become affiliated with Crut¬

feels that progress is being made
in

Colo.

N.
Cushner and Norman L. Mcintosh

pansion, however, weighed a bit
on
profit although the company

THROUGHOUT WISCONSIN
.

,

,

;

•/
16-page lampoon .of the mu?"-nicipal bonds business is liberally sprinkled with tongue-in-cheek
ads, biting cartoons and oddly captioned photos.

company's sales were, to all
intents and purposes, stagnant for
some
eight years until it moved

accident; the oil section hasn't
shown much life for several
years
now
so
few price excesses need

SERVICE

Daniel P. Whitlock

The highlight of the
outing was the once-a-year publication
of The Daily Bond
Crier, edited this year by John G.. Thompson,.
of Morgan Guaranty Trust Co. The

-

The

ponderance

YOUR

L. A. Hauptfleisch

Treasurer.

no

AT

Henry Milner

Also elected were Henry Milner, of R. S. Dickson &
Co., VicePresident; Louis A. Hauptfleisch, Goldman, Sachs & Co., Secre¬
tary, and Daniel P. WJhitlock, Ladenburg, Thalmann & Co.,

place. In any event, the shares
currently are far more reasonably
priced than they were not too long

mediate

a

sales

since it entered the discount field
has had little effect in the market¬

signs that
happen.

the results of

its

George LeVind

place at the Club's 29th Annual Field Day held at the Westchester
Country Club.
'

quently, the big, it not dramatic,

profit

close to doubling over

R.

has been

turn in the first quarter when its
came

could

Between

issues that

management has

stock

ing its profit goal.

item like

an

the

investor interest if

new

anywhere close to reach¬

comes

the

quarter,

is all the talk,
normal at this season, of how far
the
summer
rally would carry.
year

showing

shelter

ment has
A Summer

even¬

3%

a

Magnavox is heading for a 40%
gain in profit over last year's and

ment

rebound.

Missing this

many
of
these
in the hard-hit elec¬

were

even

tronics section where

no

be expected to be

position for

a

where

was

a

tually

last year. The expenses of the

was

the items where prospects for
the next year are still bright and

ciently

more

period

Sought

advice

pouring from the research
departments was largely centered

the

be held out in that event is for

long

Values

investment

many

it

The avowed aim is to.show

year,

were

still

but

were

fore the list

traditional

highs for a single
gold issues.

new

Long-Term

un¬

hopeful discus¬
pretty much predi¬
cated on the market making
a
stand somewhere along the line,
and the best promise that could
sions

appeared in

the

were

four

What

dend

these

of

price

—

hedge items for a bear market,
the gold shares. Out of one crop

'

similar

chain of

merely

the drab list

first time since

last year's

selloff

a

a

on

newcomer

issues

their

of

;

relative

a

ranks

lost half

although
admittedly

reason

level.

on 2.8 million
sparked a much
harder selloff the next day on 4.6
million turnover;
and the rare
days when a thousand issues that
appeared on the tape had minus
signs were expanded by one more.

a

s

turnover

million

2.5

this

since

been

represent

market

and

no

sold up to 256 in 1960 and the best
of five
it could do last year was 206.
It
session,
was
back in the 50 bracket this;
week

the

the

For

shares

-

high in its management councils.

profit margin after
psychology, any rebound taxes, but Raytheon has a
long
would be only a temporary situa-.
way to go to hit that level. Mean¬
tion,- according ,to .this view.
while, improvement seems to be,

getting

but topped out at 238 last
year, and could only reach 221 at
the top this year. In breaking be¬
low par, the stock posted its poor¬
est price since 1959.

took

and
faces

new

investor

Polaroid and Xerox.
The

until

aggressively

succession of

a

17

R. George

quarter—the company has pursued

Stocks

(2769)

Mun. Bond Club Elects Officers

-

-

-

S. National Bank.

Bank of Denver.

,

.

18

-

X

(*

i

i

,

The Commercial and Financial Chronicle

(2770)

IT T f\T*
\J Li tiUUIV lvi

-

1 W11 Pfl
y V

vA/A

All V

an attempt to
This is the situation / for .most
earnings ' lessen individual income tax pres-" uffilfties».\.e'vep though their nonhigh ' sures. might well lead to unsound cash accrual items such as depre-

of

resistance

•.

tax-toracket ittvestors? "
...

.

m

Barker,* Director of Research,
Stock Exchange

"flow-through" accounting for

in

depreciation; maintaining that
"flow-through" sooner or later increases cost of capital. Mr. Barker
conoludes the best means of attracting stock capital at reasonable
costs for the industry's future growth is through a healthy regulatory
climate and equitable tax policy, rather than by "flow-through" or

:fixed,.

a

.

,

had

progress

important

all

industryshould

available

markets,
utility

ing

the gas

have

encouraging

the

are

v

or' 45%

V-; 55%

--Aax htfect

1

'

what they

can do and

was

' '" - About 12%

V

tures

were

i*. ^ mn,v
ih One way

financed' externally ^
of the total expend!-:
paid for by the sale
or

a* tf.-i-o bil~,
another of $1;.2 i_.-i y

lion of common stock./(The" data ;

do V have
been
explored
enough so that most managements
peraware that they are not get-

are for all investorrbwned gas and
pipeline utilities except gas bold- "
cided to increase the
ing companies).. An. a similar,
casfc. divmend. :.
Th^ c o^m p ^my . ting spmething for nothing from basis, the gas utility industry cash
stated, the increase wm
stock dividends^ nor ace the in- dividends on common stock paid
adjust downward fine ^qck
^1-vestors. My. price measurement to stockholders during the same '
dend
portionunder^our fftock studies also show-that stock dis- period totaled about $2.5 billion. dividend
policy,
^l^nally^^ and vtributionallave no value "in them-/- ft can "be shown by arithmetic
cur^nuy -d^igned to . <p;stebute ; setves.''"XbPr^ iS one featurp, how ! that if an equivalent amount of
of

each^years ^rnings;1:0-;

j
/ ^
utility which
changed to this fixed; cash divi-:
dend policy, with the balance'of'
the earnings paid out as a stock,
dividend each year, also recentlyannounced
(following q s to ck;
split-up) that the cash dividend;

bull

^.

.

combination

■The

out from

collapsed

;V.*

,

"sthat; has not: been , fu,Uy : ca?b dividends:had-been .withheld
explained, and that is the income: during - this..period, there would
ever,

tax effect on stock dividends

,

vs.

cash dividends. The argument that,
stock dividends are taxable at a
capitalgains rate, whereas cash
dividends are taxable at a Federal
income tax ; rate (presumahly:

net income

higher for

many

.

devised

being

popu-

shareholders),
would be increased. The "in-fieu-r;has a superficial' appeal to some
reported for 223 leading electric.
and gas utilities, as reported by of-cash"; aspect of spch^a fpoltey ^.stockholders and to some manage- '
the
First
National
City
Bank is now more confused than was; ments. ;-This is particularly true
the original, case regarding -'the'7 where- a rapid .plant .growth, relaletter, shows a 6% gain over 1960,

years
Many

uses

creep

"the

a

few years, ago recently de-

the common stodk.

doubts

but

market. Although 1961

ahead.
new

beginning to

are

•underneath

prospects for
growth over

AGA

from

'

aggregated-

1961'. Of the ten billion total, about'
was financed internally and'

this -cannot

of

industry

nearly ten billion dollars. A new'
record expenditure is expected for'

w:"^

policy

gas

.

Sales and efficiencies rose,

consum¬

a

most

and
earnings grew,.- too, - in- the. post
War II years through 1960. The
1961 earnings figures are not yet

fu£l

announced

owned

,

computer which, may lead to com¬
plete automation of gas trans¬
mission systems. ./ * \...;,.C

.sys¬

almost

else lead

well be used to maintain

'ic.uulity whic/r-dividends
a

r

size.'

period, 1955 to 1960, construction
expenditures "" of
the
investor-

estate

-casi*- rf. beUeve the'faets of what stock cash ^ -r

per,-snare.
dollar-pen-share,

.

dividend. An.electric"^1"'*

-

pipeline

in

in

For example, during the six-year"

to the abandonment of all Stock
dividends even where they might

dividends annually m addrtoon- to

in .re- in economical peak shaving. New
search
the approaching end
of transmission efficiencies are being
de¬
conversion to natural gas and the developed:.'and. .research:
de>
veloping on a
pipeline system
completion of
tems to

-

or

distributing periodic type'stock;.

of

peak winter needs and advances -

high gas reserves in

excellent

and trust portfolios,

created

been

complications

two or three utilities- lar price range for the stodk
■ for
other valid purposes.

part by

kind

1961

has

-

which-have announced the polacy

stock dividends.

With record

ditipnal

•

heightening',©£

a

This

dividends.

accelerated

from

taxes

years,

public utility interest in the field
of
stock- dividends,
or
"share*'

analyst lauds post-War II record of gas utilities.
in using stock dividends. Describes short and long

of "normalizing" versus

effects

run

been

tax legislation based; upon the ex-- elation,.- area- substantial

~- y

past four or five

has

there

Warns of dangers

deferred

In the

.

Weeks, Members New York

-

'
of closing alleged "loopholes."
Dividends.,.. cuse wcmld create
This
unnecessary ad-

Stock

About

What

Expert utility

Thursday, June 14, 1962

attract the interest of

alone

By C. Austin

.

shareholders?-Cata re-. stock dividends in

and: small
cesoion

Hortvblower &

.

cinS at a minimum, consistent. of, reponting them wall spread to, of external ,j financing, including
with income appeal to institutions; any, degree. The mistaken use of . the public, sale of^oramon stock. ;

f\

jL

I T1 VPS I OT*

I

111 T

I

.

havei been no need to sell new
common stock to obtain this cash,
Also, if stockholders had sold $1.2
billion of their... original ..stock
holdings over the period in ques-'
tion,; they, could have realized
,

.

more cash' after thq ■capital gains;
tax than they, were able to retain.
from the $1.2 billion actually re-

ceived fn cash dividends, that is,
after -vordinary

income

tax,

as-

of '

issuing "retained earn- tively slow capital turnover ratio suming tax rates of 25% on the
ingr"" stock
dividends
with ' a; and regulatory ceilings on earn- capital gains vs. a 50% average
eao
gas
such
as
vestment may show. little .or no.;
"fjxed" per share cash dividend;* ings require substantial amounts
C
".
° Continued on page 39'
the gas turbine-total energy con-- gain for 1961 because of the large;
policy.
- -; •-.•
•
'r-^
^:r"'v'
cept. The increasing house heating. new
investments - in plant and
In line with the f o reg of n gJ,..{r. •
and air conditioning sales also are . equipment construction during the >

natural

for

C.

Barker

Austin

the

plant in-;

return on

percent

.

.

v

encouraging.

'

past year.

Thirties when I first ;
for a combination gasutility, the gas division

In the late

worked
electric

effect

;

~

-

.wag e.. rates- .and
construction costs, in the

increasing

tough

increasingiy

^

^ace

rate

thoughts,
ell the

review

a

nation's

made of
ntility com-

'' '

\

; ;

was

"V-"
' fairly^;wi(Jb"'r'I,'<t

gag,

panics

V,:
•
-;v'v-:v
" ":■"

.

that .have a
interest, as
publicly-held shares.
these companies -issued 'stock divinvestor

T

:

v

[,
relation. Manutac- regUiati0n to hold prices down in
": i7
:;rr.' ^
: '■
'
costly and of low the battle against inflation, con-:
heat content. Electric service had ^nte a
V
'
' : :
v'./: K-" t- ' v."" x
' '
: \:
combination that will idends.in 1961. The distributions
the growth during the depression
ranged in size from 2% to 50%-..
..'C-'SV-"'- ,T'v
^reqUire the utmost energies ; of
Most of the .share- dividends were:
:","■ v-;'•. '
years. Today that same company
management in the struggle^ to
10% or less in size; Eighteen - of; Draw a ring around the Columbus and Southern Ohio area and ; ; ^
:
is proud of the fact that its gas earn a fajr return on plant investbusiness is growing
even more men^ /j.be honeymoon is over for the^ twenty cases - were, ill• ..this
you've encircled the middle of marketing America. Within a 500- r ;
- - ,
two cases the
•
v
:
;
.V,
'.:r":
v
^
rapidly than its electric business.
gag jncjustry. Because of the category,, and- in
stock dividend -was over 10%.- Of. mile radius of this growing area are 8 out of 10 of the nation s top
•
The American Gas Association inflationary pressures of our illthe twenty companies iss.U i n g..
cities, half of the nation's population. Columbus and Southern
'
'
reports that there are more than ternational payments deficit and
stock dividends
in -1961,.. about,
•
•:,>•"■
,l t
'""rj
' 7
113 million gas appliances in use our Federal budget deficit, plus
half* had issued sto,ck_:.dividends>. Ohio'Electric Company knows this area thoroughly, updating its %
.
today, three.million more than a the Administration's inability, or
in
the prior year.j Interestingly,
knowledge constantly with studies by the Battelle Memorial Insti■
year ago. The gas appliance in- ,, -wunngness, to hold back wage
;
1L;„ ,
,
dustry recently revised upward its demands on industry, generally, enough, re the "in lieu of' idea,
forecast of appliance shipments to the
Federal
administration has over half of the twenty stock.divi-. tute- For concise information call Mr. W. C. Welch, Columbus
dend stocks operated on a normal
and Southern Ohio Electric Company, Columbus, Ohio. ' ;
1 - f; * v
a
9% gain, estimated for 1962.
publicly placed the first share of
pay-out. ratio
which
averaged■' £.--: ■■
In the area of gas operations the burden of a "hold the line"
slightly, more than the industry.
'
'";i.
- }
5 v ;
' ; "
," ' ;
are
the
building up of under- price policy on business corporathe

was

tured

poor

gas

was

.

,

.

.

...

.

,

.

„^

...

.

•

'

..

to meet tions-. This means that in 1962

storage facilities

ground

"•

•

coming

-

use

years'

management

pay-out ratio. The cash dividend,
pay-out was lower than average-

and

must

Telephone

must I

and

Company, Inc.

to

apply

.

improved

earn

Federal

without

transfer

taxes

'

'

'

:

.

•

other

and

by the issuance

created

expenses

fair return on plant in-

a

have
paying.

could

and

stock dividends and incurring the.

re¬

and marketing techniques,

search

others,

achieved

been

automation and other efficiencies,

Western Light &

the

for

all of its skills in cost cutting,

Columbus and Southern Ohio f In the middle of Marketing America
'
;
,:'h\

of stock dividends.

,yestm4ent. Moreover, it must con'

vtrnnvtr

tinue to show increasing earnings
KUuKtvU on its common stock and pay in¬

nntAAArOC

nr

UtUAUt Ul

■

One small company
has been,
issuing small stock dividends an¬
.

creasing cash dividends if it is to

,400,000 $30,500,000

ASSETS

'

'

nually

hold the industry's new reputation

1952

1961

TOTAL

reoorts it in the

?™onS investors as a
industry.

REVENUES:

Financial

-

5,773,000

"growth"

Record

tributed

396,000

194,000

through ,1960 the gas utility industry has shown a steady trend

based

271,000

of increasing

Gas

During the six years, 1955

of

$14,524,000 $ 8,541,000

TOTAL

nn/:

ooionnn

NET

2,312,000

JNCOME
Light

Western

-

Ann

996,000

& Telephone Com-

Inc., serves an area containing
population in excess of 225,000 in
r

pany,
,
-

three states.

mon

one

of the few companies pro

TELEPHONE

GAS

WATER

Kansas

Missouri

Kansas

Kansas

as

In 1960 its pay-out ratio was be-low that of the electric utility industry .and, conversely its retained earnings or plow-back ratio
higher. Even

so,

common stock money

as

ket return
ELECTRIC

well

dividends, together with a
decijning dividend pay-out ratio.

panies,

viding four types of utility service.

as

its comincreasing

on

cash

was

It is

stock

earnings

the cost of
for gas com¬

evidenced by the mar¬
on gas stocks, is higher

.

$2.70

in

shares of
of ,3%„
fair value at time of

stock at the rate

on

a

declaration."

the

dividends .-dis¬

stock

1961 aggregated
share—$2.00 per share

common

this

ten years and
following,manner:

during

$4.70 per
in
cash, and

2,178.000

Water

about

"Common

10,955,000
2,749,000
549,000

Electric

Telephone..

for

stock

The

value

market

dividend

is

part

of

stockholder's

capital and not
income. If he sells, he divests part
of his capital. The $2.7-0 market/
value

of

the

1/33

share

new

is

"derived" from .the

original share,
by taking away 1/33 of its value
at
the
time
the
original
share*
goes ex-dividend. The c a p i t a 1
gains tax applies, just as it would
if the stockholder sold

one

of his

original shares in order to supple¬
ment

is narrowing
growth and
investment reeord of the gas in¬

related.

dustry in recent years, and this is
what
gas
management
will be

fighting to uphold in the posthoneymoon period. Lower cost of

Iowa

than for electric companies. How-

income and distributions from any
other source.
/■/

ever>

the

because

Kansas

WESTERN

cost

of

gap

the

fine

marketing capital is

a

key econ¬

omy

WESTERN

LIGHT

&

in the battle against inflation.

The

struggle involves fundament

tal

TELEPHONE CO., INC




factors

of

earnings and divi¬

dend?. Are there

keeping

any

shortcuts in

new common

stock finan-

his

cash

needs.

problem

There

in

company

reporting.

prohibits

sales

combines

into

literature
any

is

a

investment

The
one

NASD
which

amount

distributions from net investment-

,

If

the

cash

dividend

withhold¬

ing provision in the new tax bill
currently before Congress is en¬
acted, more interest will be stirred
up in stock dividends. It is hoped
that neither the

dividends

nor

use

the

of small stock,
above

method

© Columbus & Southern Ohio Electric

Company 1962

Volume

195

Number 6168

.

.

.

The Commercial and Financial Chronicle

(2771)*

19

mm *mmrn a«l

Proposed Riverfront Stadium

Sverdrup & Parcel .Architects

On March 6, 1962, St. Louisans went to the

One

was

for

public improvements in the

area

sports stadium in downtown St. Louis. For
more

straw

polls and made
surrounding

a

in the wind. The fact is: the face of

hasn't mustered its forces like this in

a

a

some

fateful choices.

projected $51 million

city's faith in itself, this
an

entire

was

one

city is changing. St. Louis

hundred years.

Serving the families, business and industry of

a

progressive St. Louis, Laclede

2^ And to the future with confidence. The city is in a winning streak these days.
looks
1962 may go

Laclede



Gas

down

as a pennant year.

Company

•

St. Louis, Missouri

>•

-

20

The Commercial and-Financial Chronicle

to its; expansion A Ob¬
everywhere are becoming
alert to -the trend. - Only, last

evitably
servers
more

To Combat REA's

Expansion
& Light Co.,

By L. V. Sutton,* President, Carolina Power
Raleigh, North Carolina

the

of

the'editor

month

Dillon,
South Carolina, Herald comment¬
ed most appropriately: "The his¬
tory of government agencies set
up for specific purposes is not that
they fold up when their mission
is accomplished
.
." Commend¬
ing the job done by REA, he con¬
tinued, "But the co-ops are not
satisfied to supply electric power
,

Knowing first hand how recently attempted further REA inroads in
South Carolina were successfully stopped, Mr. Sutton calls upon
utility leaders to mount an

intensified public informational program

to

cost
them. The public should know, he points out, REA's flagrant waste
of public funds and their indefensible government competition which
constitutes a perversion of their original intent and has resulted in
to reach the taxpayer
,

with the truth as to what .electric co-ops

Noting a turning

inyestor-owned
Not at all! In

publicity, often as powerful as
their high-tension lines, that their
ultimate aim is to eliminate the

competition

tax situation, for lifting the veil of secrecy

surrounding REA's generation and transmission

companies.

power

fact it is obvious from their own

seeking to nationalize the power

end to the discriminatory

that cannot obtain power

areas

*Jrpm itaxpaying

industry.
of the tide, Mr. Sutton calls for a battle for an

astonishing growth

an

private

of

companies.""

loans, for the halt

a,

power

.

Of the problems facing this in¬
dustry in the foreseeable future
none is
more
important, nor re¬

expansion info urban and industrial areas; and for removing sub¬
sidized loan rates. The speaker warns there is no greater problem
of

foreseeable future than the problem of
expansion of government-owned and tax-subsidized power facilities.
Deceitful, misleading information must be answered, he concludes, if
we are to gain the public's knowledge and understanding.
facing the industry in the

quires more careful attention and
wisdom, than the problem of ex¬
pansion of government-owned and
tax-subsidized

facilities.

power

Specific Federal power advances
Congressional debate preceding
enactment of the REA legislation

has been

recent months there

In

great resurgence of activity and
enthusiasm on
the part of the
a

exponents

and

government power

of

the social

and

•'

* •' ;

-•

„

•]

front

Louis V, Sutton
•"'''

'N

the

aggressive competi¬

tors for industrial and urban cus¬

tomers and the renewed

emphasis

generation and transmission
so changed the character of

the REA movement that it scarce¬

ly

would

to its

be

recognizable

today

founders; and indeed is not

number

of

its farmer

bers.
With

entrenchment

is

the

of

not

was

written

on

the

of

all

to

us.

than ten times.

caused some1 reaction even among

.

_

There

those

are

this

in

nation

would destroy our industry. REA movement.
They have powerful allies who
A member of Congress who has
are constantly at work.
It is un- supported REA since its inception
fortunate that our farmers, tradi- issued this warning to Administionally among ourmost stable trator
Clapp
during
searching
and conservative citizens, are be- scrutiny of the $30,000 ski-slope
ing used unwittingly by these loan: "I think you should be very
government power zealots.
i
careful not to make loans that are
going to go so far afield, because

Techniques Employed

the first

The

principal manifestations of
the vigor of those who would destroy us are these: °
The militant, insidious and
shift of the heavily sub-

(1)

devious

sidized rural electric cooperatives
from rural distributors into producers and

Recalls TVA's Deceit and

aggressive competitors

tion—while

Subterfuge
in

dental

threat

in our industry
that, the inci¬
of TVA posed no

1933

power
—

that

of Us

those

retaining

unjustified 2%

leaders

Many
believed

in ad¬

were

mem¬

of

firsjt REA Administrator, this

of the nation.

The power compa¬

nies

rural

and

cooperatives
succeeded
in accomplishing this
job in less than 25 years, and now

and

the

wholly

,

,

(2) The government redevelopment programs to assist
.rural cooperatives to subsidize industries

v'•

On New Aim

America's farms

is

once

initiated,

momentum

Federal program

any

there

is

leads

that

a
built-in
almost in¬

and, transmission loans

lieved that the TVA would absorb

to

—

facilities where
at taxpayers'

generating

practically every electric utility
then operating in Tennessee. No

needed

expense.-

One could then foresee that within

are

—

Intensified efforts toward
a gigantic governtransmission
grid

(4)

construction of
ment-owned

less

REA Doesn't Quit But Takes

tion

than

of

30

the

approximately

years

generated

power

TVA would be produced in steam

Through deceit and sub¬

plants.

terfuge the first step in the plan
to

nationalize

the

electric

utility

Some

familiar with the

are

na-

tional effort by REA for so-called
"territorial integrity."
With five
out

of

six

customers

being
effort really is
monopoly and
industrial
and

new

non-farm,

their

territorial

toward

expansion
urban

into

without

areas

responsibility

concurrent

regulation.

or

Ad-

ministrator Clapp urged the members of a cheering NRECA audi-

FPL's
!

COUNTDOWN
IS ALREADY
3.5

!

ON!
Biggest expansion
our

program

in

;

3.0

;

a

long look at Florida. Plant sites

available,

are

1

'

abundant, transportation excellent,

Cape Canaveral—will

mean

more

Counsel

nrnvidp

efforts

of

fnral

a

a

Model

nnint fnr

cooperadve

°

in

aU

for operation

iq
is

next April and

2.5

by 1966, system capability is
set to

|

top 4,000,000 kilowatts.

nppdefi
needed

In

for
±oi

INCREASE IN
_

U

.

GENERATING

svsfpm*
systems

...

speech m Iowa in
Mr. Clapp counseled the
operatives to "take a unified
a

fered

CAPABILITY

to

assist

1.5

Kilowatts)

!

in

out

map

SINCE 1946

To L
come
to

in

any
a

any

I

way

can

on

tion loans granted. During the fisCal

needs

now

1955-1960, G & T loans

years

totaled 35% of all loans. In fiscal

1961, G#& T loans amounted to
$152 million or 55% of the total

loans.

v# Y
The intent of REA has been
demonstrated most forcibly with-

offers

advice

instances. The $60 million loan to

Hoosier Cooperative Energy, Inc.,
heralded by the REA as the largest loan in its history, and pendb
Indiana Commiss^on
approval or disapprov|' +wa.s, transferred to Indiana
Statewide Co-op m an obvious
m°ve to circumvent the CommisS1C11?- H?osier withdrew its applicatl0n for a certificate of convenie.nce an(J necessity; Statewide

claims R already has one granted
some 27 y£?irs
was Msei
other incident ievp

Jates to the Missouri basm, where
tbe. P°wer exch^ge proposal^^
12.myestor-owned compan es
rejected by the Bureau of
c m

101ilnR^aR^A

P°^al by,
under

finanppri

name

£°wer

co-

committed

to

and

watts of power,

ap-

RFA
REA

all

co-op

assistance

legislative programs as well as

your power

and guch other loans

Thege

and in the future!

as

Mississippi, and the

^15 miuion in

in

million

wholly

unjustified from any standpoint,
economic

implementation of
of REA to
coP_ops seif.sufficient

the
d

th

make

otherwise. Such loans

or

Biustrate

the

purp0Se

*",h prl"
Cites
Lest

I

Colorado,

western

^ approved in secret, are

Section 5 Abuses
.5

Electric

Basm

Ls

nns

rn

fIppIHp

Twin

the

s.s,r."^-*he ","lmur"

than

trans-

REA's existence, G & T loans totaled only 18% of all electrifica-

Growing Awareness of

$20 billion in the state! We're prepared to meet

and

to

state
to help

bulletin nf Feb.
of

borrowers

generation

of

mission^oans under a shroud of
secrecy. In the first 18 years of

»

unified^ campaign to

Administrator

pr0val

°+" the $20 million loan in Alabama,
to

^Feb l*?' 1962 ^thp
12, 1962, the

bulletin1

.

,

concern to us is
reA's stepped-up activity in ap-

REA revealed it was committed
granting Basin a $36.6 million
July last generating loan for 200,000 kilo-

thoir
their

year,

manpower

expenditures of

General

states where territorial protection

plentiful. Above all, Project Nova—the proposed moonshot
from

of

Territorial Integrity Act which we
honp will

is already in place, scheduled

m

resources

territorial
protection,
developed through the
Department of Agriculture's Offor

have

the

A hew 300,000 kw generator

(Millions of

Take

battle

fice

history calls for practically

the next five years.

Has Power to Share!

City last March 6
missionary zeal" in
their quest for state legislation
and stated: "to help your cooperative rural electric systems in the
"exercise

to

we

doubling system capability in

FLORIDA

in Atlantic

ence

4.0

Growth of G & T Loans

Of paramount

in the past month in two separate

the land.

across

by

continue to industrialize, we will
certainly do thaiSection 5 loan abuses bring
such a rebuke from a tested and
^rue fnend of REA, how much
fPor<: c^n we b°Pe f°r ^ we spread
"*e facts 1° more people.
.

/

_

build

thing you know we will
have to rewrite that section and
make it perfectly clear that we
did not intend that.
And if you

government loans

tax-exempt status.

/0,

none

75%

the job is done.

But

electrified, forgotten is the 1936

the

total would: be in power facilities.
Few
outside
the
Southeast be¬

officials long identified with the

who

for urban and industrial distribu-

not,

are

industry joined hands in the great
undertaking to electrify the farms

-

97%

it.

•

going to pun¬
jacent areas were unduly alarmed.
or
parallel their
an.^
iNobody fithpftjght that- Iwithin;: a .With ?tker|Jarge power customeis
lines and enter into competition?
gpyerntnent financing.
r
single generation the totql Invest-:
with them."
"
(3>*The policy of the REA
merit in TVA would approximate"
Despite the early antagonism of $2 billion and that 82% of the urging co-ops to apply for genera-

expressive of the philosophy of a
vast

REA

new

industry has become an accom*?r* The .current
governmentreplished fact. f
r.
" developmentc programs,
together
In 1940, investor-owned power with
the recent REA emphasis
companies accounted for 86% of upon Section 5 loans for the purthe
generating
capacity of the pose of co-op financing of indusnation, while Federal Government trial machinery and equipment,
agencies accounted for only 6% are resulting in cooperatives enand municipalities 8%.
By 1960, tering fields of business wholly
the percentage owned by inves- foreign to
the purposes of the
tor-owned companies had dropped REA Act.
The result is notorito
76%. while
the' capacity
of ously flagrant waste of public
Federal agencies had jumped to funds
and indefensible govern17% and the municipalities had ment
competition
with private
dropped to 7%. The rate of in- business. Illustrative are such in¬
crease, of
government generating Cidents as the relending by a co-op
capacity during that 20-year pe- for snow-making, ski-slope equipriod was more than double that ment, the lending of money to pay
of
the
investor-owned
utilities; for installation of gravel-crushing
and while the production during equipment and the urban housing
that period of the investor-owned developments started by cooperutilities quadrupled, that of gov- atives.
Such perversions of the
ernment agencies multiplied more original
intent
of
REA
have

•

Administrator, Mr. Clapp.
The present role.of the REA co¬

REA

have

who

obtain

statement

the

was

theory that we
ish
somebody

and aided and

upon

"We

This bill

NRECA,

as

otherwise

in this bill, In¬
tending to go out and compete
with anybody.
By this bill we
hope to bring electrification to
people who do not now have it.

national

operatives

or

cern

■'

America

of

farmers
not

Emphatic

the

abetted by

the indus¬

Each new govern¬
subsidized project,

whole.

as a

debate:.

organization,
the

try

Congressman Rayburn during that

cooperatives,
led by a mili¬
tant

and inconsequential to
ment-owned

part of or contributes to the Over¬
all
purpose
of the government
power zealots
constantly to ex¬
pand their empir e: therefore,
every such project is of vital con¬

the

could

electric

rural

merely

each

to

fore¬

are

sponsors

not

are

areas

isolated instances of local concern

emphasized that the program was

importance.
the

the

With one accord
of the legislation

of the Act.

local

in

designed solely to bring electricity

indus¬

try is present¬
ly engaged in
a
struggle of
transcending
In

expressing the spirit and pur¬

pose

planners.'
Our

.Thursday, June 14,1962

.

(2772)

there

a

be

Witness
any

doubt

that

FLORIDA

unIotice^AOne1Vmembern°ofgthI




Miami, Florida

F^lLernmtnfpSwer zfaToTs tQf

Appropriations Committee

£lS hearings'^ oTR^P ^

POWER & LIGHT COMPANY
P.O. Box 1-3100

aI1 these activities are part and

House

...

| 1946

1951 1 1956

1961

1966

hndvet-

{<Tf
'It

'

seems

sumptuous
.

.

.

to

State

to

for

/
pre-

.....

me

a

a

little

Federal

gency

mastermind lobbying

legislature."

in

a

£

this nation, examine the remarks
of
Clyde Ellis to the recent
NrECA
<<T

convention:
^

len or id y a s ago y
Continued

,

a]

on page

37

Volume

,

•

195

The Commercial and Financial Chronicle

Number 6168

(2773)

21

4.

'

»

*

«>

c,.

IN HUNDREDS OF DIFFERENT WAYS
■t..

-Mj;r

^

1^-.

.

,

;

.

j,
If,

/S CREATING A NEW WORLD OF VISUAL COMMUNICATION

r

■

v-

Our scientists and
communication

—

engineers are continually casting new light on the art of visual

and

the "use' of

light. itself to

.

convey

greater knowledge. In

v;education, in business and in national defense, these advances
.-

give

man

broader vision.-Here are three of

our

destined to

are

recent contributions to the art.

m

Jill

■

-

%l$t

i

NEW DIRECT-WIRE

NEW "EL"

NEW KING-SIZE

TELEVISION
A compact, low-cost TV camera that can

be

new

type of flashbulb, big as a 100-watt

connected by cable to any standard TV

light bulb, is

receiver has been developed by

details of missiles, rockets and

ourSylvania

subsidiary. This inexpensive system places

tion

now

being used to photograph

equipment for

our

pilot-ejec¬

nation's defense.

"closed-circuit" TV within the reach of

Developed by the Photolamp Division of our

schools, hospitals, institutions and indus¬

subsidiary, Sylvania, the

trial

provides

concerns

for

training, monitoring, and

the remote supervision of
camera

will feed

a

operations/One

number of receivers.

READOUT DEVICES

FLASHBULB
A

a

flood of light in

FF-33 flashbulb
a

flash. And the

duration of that flash is 87 times

longer than

A number of

of

you

types of PANELESCENT®

reproducing letters and numbers in ever-

changing series-are available from our
Sylvania subsidiary. These panels

ing wide

are

find¬

in "read-out" devices for

usage

direct-reading measuring instruments, elec¬
tronic computers and

military radar. New

types displaying moving images are under

development.

light from regular flashbulbs.

'/<

If

new

electroluminescent display panels-capable

»

'

Ji't'ij

' }»»

J

*'•

would like additional information concerning the products shown here, write to General Telephone & Electronics,
Dept. 23, 730 Third Ave., Neiv York 17.

SUBSIDIARIES:

GENERAL TELEPHONE& ELECTRONICS




General Telephone Operating Companies in 32 states
General Telephone & Electronics Laboratories

~

4..

-

leader in the

General Telephone & Electronics International

complementary fields

of communications,

General Telephone Directory
Automatic Electric Company

electronics,^

automation, lighting, research
and national defense.

Company
'

Electronic Secretary Industries- •"

r

&■

Leich Electric Company
Lenkurt Electric Co.

Sylvania Electric Products
Chemical & Metallurgical Division
Electronic

Systems Division

Electronic Tubes Division
Home & Commercial Electronics Division

Lighting Products Division
Microwave Device Division

Parts Division

Photolamp Division
Semiconductor Division

Special Products Division

Sylcor Division

The Commercial and Financial Chronicle
22

.

.

.

Thursday, June 14, 1962

)

'<<2774)

country becomes obvious. Denied

Total Electric-

Industry's Growth

To Revive

judgment whether there

your own

rapid rise in numbers of cus-; is a parallel between our 1950tomers,
these
companies
must 1960 experience and that of the
carve
out a bigger share of the railroads in the 1930-1940 decade,

M

existing market. The drop in the
rate of increase in aver-

annual

Obviously, there were many factors in the competitive decline of

Total Effort Devoted to Sales
The first decision: that total

a

ef¬

selling the total
Any electric com¬
feels concerned at

fort be applied to
electric concept.

which

pany

its

in

deterioration

the

of

rate

the railroads which are not pres- sales growth must, as its first
ent in the electric situation. On decision, commit itself to total ef¬
By Howard J. Cadwell,* President, Western Massachusetts Electric Co.
Now we all know that a con- -the other hand,
such factors as fort. It is too easy to assume that
a
rise of a couple percentage
stant or compound rate of sales ■-regulatory strait jackets on pricContrary to impression cast by absolute figures, the electric utilities'
growth can Jead to fantastic quan^- 4ng and service policies, tardiness points in rate of sales growth re¬
annual rate of growth shows a declining trend. In directing attention
" utative results over a period 'of in meeting the customers' new quires only a moderate expansion
in sales push. This reasoning ig¬
to this, most companies are urged to imet the data's challenge by
years. Presumably all business has:, wants as to service, improvements
-to yield .to some sort'of maturity' in the competing services, inade- nores the fact that a lot less than
getting "on the ball competitively"'. Moreover, they are strongly
curve of growth over a long span i quate; research,
and the erosive half of most electric companies'
advised to do m$is by making four major decisions to achieve a
///.'*> of time; But the drop in rate of "/effect ofV adverse'. subsidies have present sales growth is actually
totally competitive sales policy. Speaking from experience, Mr. Cad- :
growth which I, have;,shown in 'all be named by railroaders as motivated by their own sales pro¬
v/ell declares ^pick-and-chocse" electric service must be replaced
these charts is uncomfortably fast, /elements ' which
contributed to grams. (I do not dare say now
by pushing total service with profitability figured on the whole and
V
Furthermore, while this drop in-their loss of markets. These fac-. much less than half.) In any event,
not e*ch type of electric service. Further, he stresses, there must be //
rate of growth .is Recurring,- cer-' tors may come to have a more I am sure that the resumption of
total organizational effort from the top down with sales and willing¬
tain of our costs continue to rise
familiar ring.-to us in the years a constant rate of growth and the
elevation of that rate of growth
ness to commit substantial sums for development without the prosat
a
compound i rate f*—.notably «ahead.
/ v wV'*?/
wage rates
and. ad valorem, tax
.-Now let us turn to .remedies— above the present level requires
pact of immediate return. Rates for complete service, he cautions,
at least a doubling of the present
rates. However, for the. benefit of i to .the /drastic overhaul of sales
must be set competitively and profitably,;and service provided for
customer use indicates that
the challenge is not. being met.
age

••

r

•

-

-

.

.

that the fingering: the bumbershoot
area
of rather irresolute fashion
competition is change
There may be room for a

an

commercial

provide

so

our

bility in meetre¬

ness

weakly

Chart I shows the trend

o n,

aged, might be
caught nap¬

why

does this hap¬
pen

industries
I

Howard J. Cadwell

submit

simple

that

the

appears

on

will

storm

will

time

we

the

the

bigger

utility
than

that

a

,

hard that

so

cloud

horizon
hand.

as

we,

growth

look at

umbrella.

competitive

electric

the

So

By the

an

It

in annual

panded ' I effort,

plete heat, light and power service

Although the sales function is no

bottled gas, non-utility power pro-

for home, store

more

duction)
the
I

do

show

the gas

national

side

suspicious

safer

much

unless

to

and

that

assume

until

will
we

the

continue

drastically

''/>

■

that

Gas Utilities -.V"

Be "Pushed"

-

ly exanding areas in the West and

South, the problem for companies

of

than

to

in

fort

selling

to

the

electric

total

homes and/old

new

ciS?StebffehihInbf'f^neT"fee-

interesting lories and to old factories.

of figures from the Yearbook
Railroad

"offering" and "pushing." It would
appear that a minority of electric
companies are exerting all-out ef-

Tiomes^ to- new commercial cus-

I couldn't resist showing on the
set

Information.

disagree I will

Rather

leave

to

•4

Yet this-is what

-

For

have to do.

we

the term "selec¬
had a great vogue.

selling"

The

idea

that

was

lay

electric

uses

the

to

road

promoting

in

those

which

the

cost

new

one

ment is

/V'

centrated

national

in

able

cur

sights

on

a

then figure

and

Development Depart¬

a

be

to

the

on

his

competitor

a

energy

realize- that

I

gap

are

projects.

19

./"

million

•'

••

is

a

the

and

specifics needed to

/

'

:

.

We

the

full

facts.

Write

in

:/\//' '
complete confidence to

far from

being the first
4n the country but we were the
were

first in

Don

H. Anderson,

Manager,

Industrial

De¬

velopment Dept. • Oklahoma Gas and Electric Company • P. O. Box 1498 • Oklahoma City, Okla.

based

area.

our

From

Get

our

in

own

part

/

experience, and

on

the

experience

of

others, it seems to me that con¬
a policy 0f "Total Elec¬
tric—Total Sell" on the part of

version to

OKLAHOMAfni ELECTRIC



Donald S. Kennedy,

He

can

integrate

the

V

.

company-

/

;

Very obviously, research and
engineering must play a most im¬
portant part in developing serv¬
-

ice

costs

which

methods

and

competitive.

Naturally,

are

a

President and Chairman of the Board

CO.

any

few

side, billing
practices
forms get into the act; also,
questions having to do with the
rental or financing of utilization
equipment—an area of growing
significance.- The central position
and

the

of

sales

electric
basic

be blinked.

company

decisions
'.-■■*

requires

that

a

cannot

-

department

goes

without saying. But, if we are to
shake, loose from a low-emphasis
sales

will have to be
effort, energized from the

program/ it

team

down.

Increased

the second decision:

Now,

the

decision, In terms of what

money

which

faced,
and
other
companies

company

own

my

Expenses Must

Sales

and
Be

many

-

have to face.

may

first

We

speak feeling¬

because
my
own
company
adopted this philosophy as its goal
four years ago—and we've still a
long way to go.

dollars in construction
•

prime problem, he is
can bring to bear all
the
departmental skills
of
the
utility which can help in the solu¬
tion. He can encourage innovation.

package.

there

between these generaliza¬

Sell" posture. I can

largest installation of its type in the
world. During 1962 alone, OG&E will invest
than

in

firm commitment

who

man

to

ly,

-

the

more

a

to solve this

the

Service

of

tions

con¬

steam-gas turbine which, when completed, will

mind

own

top

part

Now

big

advertising and personal
includes OG&E's

Once the president has made

his

profitable—not send the
off

•

we

entirety we have to
research and ingenuity to

get

235,000 kilowatt combined cycle

presidents of large motor com¬
panies, or soap manufacturers, or
cigarette makers/grant to their
competitive selling problems.

a

customer

con¬

as

achieve the "Total -Electric—Total

struction of

execu¬

respectfully suggest,
grant; sales as much claim on his
managerial skills and time as the

its

it

make

visitation.
Part of this story

_

utility chief

tive should, I

If the-service isn't profit¬

oranges.

of the

yourself through

our

a

the bananas

en

; -.

telling this persuasive industrial story

to business leaders like

set

way: to provide it at a legiti¬
profit?; If the service is total
in scope, and is profitable in its
entirety, we don't have to figure
whether .we are making as much

rapidly growing complexes in America.- /// :
OG&E's Industrial

to

complete service

use

most

not be smarter busi¬

nessmen

mile service

where the industrial climate makes it

we

mate

.

few years.

financial

4- Would

heartland
Company

adminis¬

the whole

by

-

put

square

believe

I

-

industrial
the 30,000

and

sector

that sales should be given priority

ana¬

wax.

of Oklahoma Gas and Electric

this

in

the

areas,

skillful
handling of cost analyses and rate
lysts said would produce the great¬ making are vital to the develop¬
est return on the utility invest¬ ment
of
a
competitive pricing
ment dedicated to such uses. This
policy with which to attack the
"pick-and-choose" philosophy can markets for totally electric serv¬
be guaranteed to produce lowered
ice. Also,.electric-utility policy as
rates
of
growth, now that the to
the
servicing
of
customerCompetition is- clearly-and an- owned
equipment will have a
nouncedly after the whole ball of sharp competitive bearing. On the

OGSE

Here you see

drawer

in

engineering,

wide effort.

years

many

tive

success

area

financial

The electric

space heating. But there is quite
a
difference
in degree between

package

Revenue Decline Compared to

an

the

and

attention

of such-predictions. / „>/,./-•.;•/

trend

downward

problem.

long run
operations
the
topproblems of the moment

important

than

are

the

to

trative organization over the next

con¬

They aren't always, p£%pared after*Now it is true that most electric
consulting the competition: as tcT utilities are Offering" /total elecits intentions. I think it would be 4x4^/; service,
including/, electric

left side of Chart III

and the

a

atttention

need^ahd.filace all behind
of our
siderable resources

drop in our relative position over siaerawe raoui
the last ten years. I haven't shown senmg jim. any prediction for 1970 because J Complete Sales Must

are

in the slower-growing parts of the

and factory in

hand

/

customer's heat, light and power

///,//■.:>;:'" '

pressive growth figures of rapid-

are

com-

a

form as conveniently usable and
of Chart HI/ controllable, as we can provide.

seven-percentage-point

to

seems

offer

can

one

available revenue So We have the merchandise! Why
the .electric utilities do we* not ■ sell electricity on a
regulated/competitors, .total service: basis — for all the

utilities.

Note the

considers

figures

utilities; N6

the

for

their

and

','•/'•//•/••./«/' 'No one/has yet been able to

could be scored. But on

right-hand

figures

'

•

difficult picture to de-

a

kilowatt-hour >overhaul' our sales and service

When 'one

one.

about

talk

I

most

for

—

;

several competitors (regulated
natural gas, unregulated-oil and

^

This is

customer. See is not II. po lcies.
Chart a
the picture

the
-

When

effort

package energy in a form as convelop. I know of no over-all sta-. veniently usable and controllable
tistic against which we and our as-that provided by our electric

competition.

lot

a

industry,

of

greatly ex¬
I ■ do not mean
simply sales promotion dollars.
Most important is the commitment
of the total utility organization to
sales expansion. Such alDout com¬
mitment requires that the chief
executive of the organization al¬
locate a large part of his first¬

here

happy
that
-

trend, perhaps we should look in. growth rates back where they beanother direction :— perhaps we long is expressed in the title of
should try to examine the trend this talk, "Total Electric — Total
of our sales against those of our
Sell!'' |; '/ : •'• • ; 1
■. '■/.///:' ///

weighted upward by the very imthe

on

is

|fles
Even

utility sales
companies.

am

versely affected by the slowdown
in home building of recent years.

a

pelting down,

blowing

can't raise

The

me

is

ad¬

the

...

starts

rain

wind

were

sales

that

us.

...

de-

perhaps it would be fairer to
our sales performance for
this
class
in terms
of rate of

or

around

go

by itself,

a

show

Both

that

hope

disperse

..

the

is

answer

one. When a
the horizon we

procrastinate—we
cloud

managed?

decline in and ^service policies which I mengrowth is not conclusive Vtioned. That which I would subr
evidence
as
to
a
degenerative mit as/a recipe for putting* our
those who feel that the

of

clining trend.
The residential

human

and

cloud

strongly

—

rate

class

whole

to

of an¬

growth in kilowatthour sales from 1951 through 1961
for total sales to ultimate conmers
and
for
the
residential
sumers
nual

man¬

ping,

Growth Rate

Declining Annual

cor-

t i

p o r a

up

tion of

quirements?
Granting that
single

to the standard predic¬
yesteryear—that our busi¬
will double every 10 years?

living

changed

consumer

showing

lute

inflexi¬

g

sales are

industry's

great growth—in terms of absoquantities. But how about our
rates of growth? How well are we

of disas¬

trous

dif-

the

of

exam¬

many

ples

a

in

of opinion as to the size
competitive cloud and the
threat which it poses.
After all,

ference

the

should

then,

Why;
business world
itself.

n

'

obvious truism
constant
in
the

is

onlv

i

.

,////* rate

"optimum" sales

associations and manufacturers to assist
program are indicated.

by Trade

It

Contributions which can be made

relations value.

and public

sales

took

a

look

at

our

already pretty hefty sales promo¬
tion budget.

took

we

a

look

electric companies
Massachusetts. Then we took

in
a

Then

other

the

at

further look at

—the
On

side

left

competition

our

Massachusetts

the

of

gas

utilities.
IV is

Chart

rates

the electric-gas com¬
for
Massachusetts
in
the year 1961. It sepa¬
directly promotional outlays

from

unrecovered

presented

parison
terms

ice

of

costs.

curately

In

the

customer-serv¬
absence

comparable
Continued

of

ac¬

gas-electric
on

page

34

Volume 195

6168

Number

.

.

The Commercial and

.

Financial Chronicle

.

-

new

issue market made headlines
out

future

By Daniel J. Berrell

pure

June

11

stock

more

offerings

rights.
Later, the
fUed an amendment to

subscription

issues

withdrawn from registration

company

as

bring is, of course,
conjecture, but underwriters

fOT .a favorable COfn:
phrase from Oil4

the

prospect

asks,

"If

the

_

listed
stocks
drop
through the floor, what can I expeet from newly minted issues?"
Until the senior market improves
then, companies. seeking
new
capital must postpone their
expansion plans or look for pri-

vate

sources

of

'

...

the

second

half

;Dow-Jones

an

offering.
.^Gulf
.American stated that the UndeTr

activity, the

writers had requested the action

of: 1961.

(explanation for

this

t

Industrial

from 724.71

-As

than

In

:>

the

hectic

•when/the

month

Dow-Jones

.clined from

671.24

,

»

ditions."
7,
In

y/V/V;/V:/7

,141.50 to 114.48.

n

Index? fell
-"because

Jan. 2 to 595.17 on

on

June ,11,- and the Over^the-Counter Industrial Stock Average from

.

of

'May,

Index

has
115

Building, under the

of 1961. Those that

from

President,

Westheimer Office

business from offices

MARYSVILLE,

Ohio—Norris F.
is representing
Westheimer and Company from offices
Krueger

>-

;

rights

of

current

a•

market

Conclusion '

:
the

first

con-

y; V;/v:

half

of

market.

1961

the

__

A

Calif.J*
Inv. Adds "/V.

Goldberg Forms Co.
^

>

*•;

~

7lost .'fortunes (many -in the
AN ,NUYS,, Calif .—Karl BrownPERTH AMBOY, N. J. — Alex
-"paper"'--category) in the recent has been added to the staff of Goldberg is conducting a securi-collapse

'* V V

cw^kU"-

ahStewi
-yv-u

and

who

have seen the California Investors, 14401 Sylvan

bluest of the blue chips (A.T.&T.)

Street. : He was

drop over a score of points. Many

with

Mora and Co.

formerly

ties business from offices
of Alex

—

cancelled

were

•Instruments, Inc., 100;000
;shares to

be

offered

common

at

ileum Corp., $4,6/4,000 of
;

convertible

due. 1977 to

•

$3.25) to
(Occidental Petro-

the king-sized
lordinated

*

small< (S.M.S.

be

debentures

offered

holders at par).

*

Vy

subto

1

stock¬

The withdrawals

often accompanied - by state-

were

iihents from the company that the
action was taken, ''because of the

.

-

present unsettled condition of the
«y.
1
: "v';
One of the larger issues to be>.

:market."'

.

.

withdrawn

was

a
proposed secEmerson
Electric

'

ondary

for

.

...

Manufacturing Co., covering 435,- i

-

784

-

shares/

common

■was

of

part

tne

The

stock.;

1,884,496

shares /

'

which Emerson expected to deliver in exchange for the business

'

and
•

;
.

be

made

stockholders
Motors;

;

U.

•

-

:

S.Electrical.

Motors, Inc. Emerson stated that
it had been antici>pated that offering and sale of the -435,784 shares

:would
•

of

assets

>

by

some

S.'Electrical ;

of

trie

;;V: ;V V •''■,;'V."

y;;'y.y

•

.

/

U.

of

The registration statement filed V
with the SEC on May 14 listed the

.maximum

v

offering price of the
stock at $40 per snare, or a total
of $17,431,360; However, when the
registration
was
withdrawn
on

.June
on

•

was

•

the

8

closing

$27,375

Cities Service

/

.

'

on

ing

a net loss of $17,431,360 in the
24-day; period/
-yy.Vy:
X '-VV
Although.most stock issues had, •

"a

•

•

(

used to cool atomic reactors while

preventing them from becoming

a

offering would get.
good start. ' For example,:

Volt Technical

shares

of

its

share

'Co.,

class

A

through

May

on

16.

oversubscribed.;

stock

to

see

at

"•

possible for engineers to simulate
"V speeds up to 17,000 miles an hour in

$8;.y

Andresen

The
7 —

Many underwriters

;

•

Corp., witnessed a
offering of 66,000

secondary

issue'

J

&

miniature wind tunnels.

•> These,

was /

happy

were

kind,, in

a

contract to

However, V ;

bear market.

that the original offering had been

(

:
•

:
.

due

1971

30

May

.

.

•

to

sold

The

common.

from

24," with

that' the
a

was

panding role it will play in supplying
;

the free world with this vital element.
In

everything, from fueling

lofting
/

.

issue!

-Vis

on

a

giant rocket.

•

planned
>

have

been

,,

filed
Feb.

a

American

registration

Land

close to

There

>

.

,

to

many

interesting

see

and do

just

a

,

pleasant

drive from wherever you

-

*

home-by carl

are

things for the entire family

live*

This weekend, treat the

.

family to
,

a

day's outing—

the convenient,

economical

way—by car!

Corp.,

statement

on

•

-

convertible subordinated•
due 1977,-which-were] «■*

^debentures

to be sold to stockholders through




V

•.

.

28, 1962 covering $11,000,000.

'of "6%*%

to

Cities Service

Get close to America.

:

sold.

on

Gulf

.

the move!

/;

.

r

-

.

.

announce-

later date.

May 21.

your car

.

registration

the

company

to

under

1

$2,200,000 of sinking fund deben-. V
tures due 1977 (with stock pur-)«.
chase warrants) on Dec. 28, 1961.'
issue

cubic

day. Construction of the

Ulysses, Kansas.

Lamb Industries, Inc., registered

The

a

Cities Service is proud of the ex-

;;

in

:

•

•

common.

be

;

-

at par. However, because of market conditions it was withdrawn

i

•

$1,000 debenture and

of

to refile it at

r

!

debentures

30,000

were

withdrawn

; ment
:

one

shares

was
on

and

which

units of

.

subordinated

few of the

helium extraction plant is now
-way near

.

^

also hard hit by the market ;
slump. On Sept. 12, 1961, KiddieRides, Inc. (Chicago) filed for an
offering of $1,000,000 of 7% con¬

shares

:

-

were

vertible

a

supply the United States

feet of helium

.

substantially reduced from 190,000
shares at $10.25 to .66,000 at $8; ./
Securities convertible into stock

only

Government with up to 2,000,000

; there were a few who pointed out/.
.

are

of this invaluable element.

Cities Service recently signed a 22-year

successful flotation of this

a

however,

v; many uses

)

'

y

.

radioactive. Helium also makes it

occasional

off to

per

.

/
V

rough public reception in" May,

an

V /

unique element from the sun ... helium!
It is used in missile fuel systems. It is

-

.

-

move

Essential to scientific progress is a

;

Exchange,

share represent- „■> >

per

the

-

market price

the New York Stock

•

.

-

•

CITIES

@

287

name

Goldberg and Associates.

•

cte-

at

Water Street under the firm

on

the

a

Johnston

of Harry M. Boyd, Resident Vice-

May 1 to r;
.613.86 on May 31, 30 issues were '
; withdrawn : f r o m >
registration rV
; against
five in the similar period (ranged

opened

management

at 33 Wes( 42nd Street. N.Y.CJty. at 120 South Main Street, ;

withdrawn, against b» in The tne
.Same-period -last year and-18 in
;

C-^-First Secu-

rities Corporation
branch
office
at

1

_

Abraham Dubensky is engaging in
securities

CHARLOTTE, N

financing.

ADraham LJUbensky Opens

a

23

First Securities Branch

well-known

say,

will

are hoping

times

would

$4 a Share, and
shortly be bid up into the stratosphere. A year later we see some
•excellent issues ending up in the
bargain basement. What the near

As Stock

.were

stock

because'
come

.On

(2775)

SERVICE

24

The Commercial and Financial Chronicle

(2776)

strength and growth without
possible measure of co-

mum

.Confidence Is a Bridge Badly

business units of which

the fullest

million

operation and understanding begovernment and the private

By Roger M. Blough,* Chairman of the Board,
U. S. Steel Corp., New York, N. Y.
maximum

nation's

Our

without the fullest

strength

^

growth cannot be achieved

and

understand¬

possible measure of cooperation and

in size all the

business?

in

result, the economy's
performance. We must define the boundaries of each, he adds, so
neither government nor business encroach upon each-other's re¬
sponsibilities. He questions, also, whether business is doing every*
thing it can to earn the government's confidence. One of the im- ;
pediments to confidence discussed is tax depreciation, and. how
reform in this area would electrify business, employment and our
competitive posture. Mr. Blough fears guide lines to keep costs in
line will lead to wage and price controls; decries the attitude toward
corporate profits and its impact on new capital spending; and ques¬
tions government's non-defense spending increase and competition
with private business as in the case of our utilities.

have

it

con-

always fully alert to its constituresponsibilities,
will * act
with knowledge of the needs of

.

while

of

the

net

solidly

is

result

a

and

new

community built more
firmer foundations,

stronger

to

the

"Beware

task

and

are

we

warned

reconstruction begins

the

that

serve

upon

Ides of March"

provided there is the will and the
confidence necessary to undertake

when they oc¬

successfully

in

should

be
Roger M. Blough

and

April, because the solar
seem to be consider¬

reverting to that tempest of

a

And that, as you see, is merely

nonpartisan, nonpolitical obser¬
regarding an event
of

who

bear

the

burden

production in this nation:
we

rials

vation

firmer foundation of under¬

citizens

Do

rarely been seen.

at

have the necessary mate¬
hand
the spirit, the

read about storms, tor¬
hurricanes

through

tions rather than
These

by

ac-

words?

mere

business is a "major national asset." In fact, anything that provides the direct support of 55 million workers, and their families—
and

owners

moment

as

the

face

we

so

effort to

and constructive

sincere

get

a

ment

with the job; for there is
much to be done, and urgently

possible.
of seeing the mote
our
brother's eye rather than
the beam in our own, may I refer
promptly

Thus even though

the anti-bus-

to

pro-business labels may

or

"singularly

sterile,"

—

some

that

have

unfortunate

And

desire

to

rapidly
all

nation

as

matters

current

~

that

build

a

growing

them

of

can

-

never

know

_

,

and

thousand

a

and

one

whic^
pable of rousing

a

wherever

two

even

gathered

vigorous debate
persons

together—-and

irrespecpolitical affiliations,

their

of

are

,be taken.1

v< into its
private productive facili¬
ties? .Is it not a telling sign when
Falter** Investor
.our competition among the prin¬
Consider, for. example, the mat- cipal nations are putting 8 to 12%
ter
investor confidence and oftheirv gross national product
what happens when it falters. The into plant and equipment hnd. We
total market-value of the securi- are only using about 5% for this
purpose?
11
Are we taxing production didollars less on June 4 than -1* w,aS rectly and indirectly to a point
where, lack of, investment in job„f the
are as
valu- creating facilities is hurting pro¬
the corporations are as vaiu
duction, hurting jobs and the prof¬
able as before' something has oc- its needed to create jobs and even
causing anemic-looking tax col¬
y

v.-

Confidence/

.

.

.

stronger,
America.
that

this

achieve its maxi-

-

none

to

and

more

national

our;

believe

that is

in

all

ufeent
vitll

more

than
inherent, I

well-being

which is basically

one

thp

the^thornv

nthprc

AnH

nettle of deTin

ernmental°acti<m"ar^'the"proper
S
^
proper
^

.

in

mutual

each

well-being;
discharge its

may

responsibilities without encroach-

P™rt1es

corporations

Amer^n^t^mSi3

lections

ured by 431/2 billion fewer dollars.

determine where theT^ain

that

so

itTnofa^poten"

Mailable as before
Hoi J0£
denend
■

' "

unon

nerSons

.^

hn 1

^

responsibilities or the other.
Plls\.m ^urn> marks the

depth of feeling on the immediate
question of whether national pol-

really

icy

AND LIGHT COMPANY

WA

pro-business

is

ness-

anti-busi-

of

for

us—I

am

also

employed in

organization

an

too great a

percentage of the total.

this

and

and the purchase of
and equipment

'

:

•

'

T ;:'V-

"

J

America competiindustrial na-

feasible

foreign




DES MOINES

3, IOWA

non-

one

and

business

growth

for

are

have

twins, it should mean
something, too, when a recognized
survey

finds

a

trum of American

Administration

these

not

pre-

executives

been

cies would not be
Today,

ican

those

irrespon-

sible."

year

very

later,

mean

a
'

.

good word

1

'

large part of business views

proposal, the 7%

ciation.

invest¬

The

new

proposals

re¬

garding taxation of income earned
abroad at this state of

our

nation's

development will serve only to
dampen investments both in this
country and abroad to the detri¬
ment of American

jobs and Amer¬

ican earnings. It will make domes¬

poli-

tic producers more noncompetitive
than they are. The proposal's value

helpful,
75% of

from the standpoint of the balance
of payments problem in the short

these executives hold this discourDoes that

say

ment credit feature is by no means
a
substitute for adequate depre¬

aging opinion,

be

one

a

would

bill.

this tax

similar

business,- indus-

said

who

the

As

Siamese

waning of confidence among the
top executives in a broad spec-

Approach

would

of

Extensive

held in the
proposed tax
legislation and a version of the
bill has passed the House although

Now, remembering the national

pared to give due support to such
a major national interest as Amerbusiness

point

budget
taxes.

House and Senate on

lustration is "pro-business" and not growth and expansion — 55% of
"Any

a

.

research

a

anti-business," said that:

•

from

hearings

'

WRITE FOR ANNUAL REPORT

electrifying

an

business' attitude and
which I believe would be entirely

.

'

Administration
could,do which

the

effert upon

First, let me agree with Under, try and finance. Just a year ago
Secretary of State George W, Ball —in May—when asked how helpWM?.'
month in Hot Springs in ful the policies of government
outlining why the present Admin- would be in stimulating business

century

thing

Congress

would have almost

this decline but the Tact re¬

nonpartisan words and in

Non-Partisan

comptitive

mains that investor confidence
faltered and there were billions of
most of the witnesses who testilosses from which no one gained,
fied were opposed to it and it is
And both the business community
said that it was hard to find any¬
party having and the nation are the losers,

partisan spirit.

a

One

Many reasons can be advanced

growth

serving the heart of Iowa

an

national

view—involves

reason, among others, I
would like to approach this government - business
problem with

electric and gas company

to

greater
improve¬

to

means

and

our

posture?

tools

composed of 500,000
stockholders and employwho, I know, belong to one of
the major political parties or the

fellow

in

ment

tions.

For

than

with

Now, while I happen to belong
to a political party—as do most

other without either

more

modern

needed to keep
tive

ees,

investor-owned

or

'

ductive jobs

are—a

employment

ingg provide a reservoir of funds
which finance the creation of prothe

greater allow¬
what they

for depreciation as

ance

La

.

not do well to think

we

of tax reform or a

Milthese

disaster and the
vicissitudes of old age. These sav-

responsibilities of the other

business?

from

Would

^£^~?g^r^h^encroacl?-SDonCthe aglta/t personal

*'

.

help
the
confidence-ingovernment score board.
V

a

shall meet

for

few

a

beginning, let us pinpoint as exactly as we can, the
fundamental point at issue here,
while recognizing, as we do so,

tive

plish this difficult task?

more

And

nity, to

an

risk

would

Mr.

as

as

At the

in

tary sufferance,
mess

govern¬

business

can

help solve our mutual prob¬
of
attitude, of- confidence
and of better performance, since
there is
obviously much to be
aone on
the part of both and as

viewpoint must then be thought of

be

so.

can

what

lems

in terms of indispensability and
n°t mere usefulness or momen-

on

and

do

do to

millions

more

indirect investors,- must be a
task of matter of first importance. Amerstronger ican business from the national

better and
and I suggest that we
examine them today—not in any
sense in a critical vein, but
in a

building
America,

many

ourselves .what

ask

individual

and has some 16 million

one

are

Our task today is to

useful.

more

great

of

questions

are

...

will and the confidence to accom4-

their

swept

demonstrated

be

of

Well, there can be no doubt, I
believe, about the spirit and the
suing this commentary upon the will, for all Americans—of every
weather in a somewhat more se¬ shade of political and economic
rious vein, -let me add that each thought—are united, certainly, in

or

fact

;

widely publicized interest, and of
some continuing concern. But pur¬

we

this

-

thing
specifics are something else
and usually
more
tangible and
generalities

and

ernment, and those millions of our

recon¬

April, I would like to discuss
the work of rebuilding a new and
stronger community of interest

ably more intense than usual—and
are "accompanied
by celestial
Storms
the
like
of
which
has

nadoes

anti-government? And if governanti-business, how can

ment is not

government
understanding.

are

ments

So

disturbances

year

become

turn,

But

standing between those who bear
the heavy responsibility of gov¬

of

task

last

heeded
in

in

and

know

do

Ball says—it is, nevertheless, extremely useful to recognize attiDeplores Reasons for Lack of ;
New Capital Spending
j
tudes and reactions and^. in the
practical world of today—the gov- / Instead of talking about whether
other issues that confront our na- ernment-business world in which
government is anti-business would
tion and our government—such as so many of the millions in our
we not
both get much further if
medical care, the - 'fdrm problem, nation must live and work
there we were to examine dispassionFederal aid to education,- tax poln- are attitudes^ and there are reacately how sufficient. are the re¬
icy, international balance of pay-1 itioris. of which i cognizance - must sources that .our nation is putting

the

struction.

when the Ides
occur

lieve most of those in.

.

their

duly appoint¬
ed schedule,
the warning
twice

truly "anti-business"?

as

business,

how

be? i Anyone who has
laid off in a plant or

can

been

ever

people in their enterprises?

ernment

business

what

know

have, to. thrive ^-.and

useful it

tively operating, or are willing to
operate, abroad.
Or will business think of gov- * - So as Mr. Ball says, American

the

nation

a

must

better living and a better

a

.

ob¬

further

as

Do we

life, mill knows, and' his family knows,
is to enlist the aid of the thou- but do those in government know?
Well, generally speaking, I be¬
sands of businesses which are ac-

to

tional

recognized?

performance

its

Is

understood?

business

Is

:;

open,. competitive market,, to es- ,ness;
and that the most expeditablish proper prices and produc- ,tious way to assist the developing
tion in the general interest?
And nati0ns in the mamouth job of
does business, on the other hand, assisting them to help themselves

government,

country—and that is not good.

this

national

the surest way to create jobs and
Does it have confidence,/to increasb national growth is to
for example, in the ability of an have
more
investment by busi-

have confidence that

that

indicates

evidence

the

deep-seated questions -have be¬
come
widespread about how un¬
derstanding .< some
of f those
in
government- are' with respect to
business activity of all kinds in

the' velopments through research; that

been

have
great

our

of Adminis¬

use

Seated Questions

Deep
So

strength?

of

legitimate

a

tration power.

guish; that business is the primary
SOurce and repository of new de-

operating

freely

that

enterprises

May I begin by saying that this community, causing widespread
year a strange and unnatural phe¬ injury and destruction.
nomenon took place.
The Ides of
Yet, great as the damage may
March came in April
.
about have been, the loss is not without
some
Friday, the
gain; for after the initial
13th of April,
shock has passed—after the lam¬
to be exact.
entations,
the
frustrations,
and
And may I
any bitterness, have all subsided—

a

^

not

,

Does
the

in

source

Will

•.

exerting strong pressures on price
decisions in major industries is

.

fidence

seriously damaging business confidence and, as a

cur

~

„

.

_

business, in making this statement,
Mr. Blough holds the Administration with not being generally antibusiness and then, however, proceeds to list several ways it is
ing between government and

r

pretty poor, when
84% of them hold the opinion that
and business is

varying

way from A.T.&T.
the corner grocer;' that these
productive sector of our economy.* businesses, great and small, employ over 55 million Americans;
Boundaries of Confidence
and are resp0nsibie for 75 to 80%
As to the confidence that is so 0f an the jobs and all the payrolls
vitally important to this recon- jn this country,
struction effort, the answer is by
we
know that business
as ' a
no
means so
certain. How much whole thrives and declines as its
confidence does government have individual units prosper or lan_

government

between

cooperation

some one

corporations,

are

Thursday, June 14, 1962

.

.

to

tween

In Need of Rebuilding

.

run

anything? Well

is

for the

certainly questionable and
long run seems clearly a

I for one think it does—especially

mistaken

a

when it is followed by an analysis

tax

major national interest that it is

showing that 66% of these executives believe that the outlook for

Now

I

American

composed

need

not

business

of

almost

reaffirm
is

that

indeed

five

million

-

policy.
Moreover, any
package which purports to
■

-

Continued

on

page

36

Volume

195

Number 6168

<

.

.

The Commercial and Financial Chronicle

.

(2777)

electric
cooking. - This new ap¬
proach to selling electric heating
appeared in the May 11 issue of

future. Again, national sales lead¬

LIFE

huge

-

Electric Utility Growth
By E. 0. George,* Vice-President,
-

1

|

"

1963.

Here's how the broad concept
Living in a Gold

Medallion

The Detroit Edison Co., Detroit, Mich.

:

Home

will

Review

of

the

electric

industry's

"Live

Better

tised.

Electrically"

the

decade.

need

wait

to

and

hope for "dream"

homes without electric ranges,
48

in view of the
down

sales

of

goes

long-range marketing effectives,

Mr.

To improve

George suggests the creation

vertising umbrella. Action

a

real

pleasure for me to have

lems

ahead

possible

marketing position and
challenges ahead. Today we stand

them.

dustry's

at

the

old

thresh¬

of

ex-

an

citing

new

of

and

us

industry

suggest
solve

action

Better

Electrically

is

fective

a

opener

der

offers

efits,

such

complacent.

leadership.

The

The

broad

rected to

is total electric living.
this umbrella, advertising
promotional emphasis is di¬

Under

our most important com¬
petitive loads—the electric range,
electric. clothes
dryer,
electric
kilowatt-hour water
heater, electric heating and
sales in the
cooling and the Total Electric

goal is to

at least double

Gold Medallion Home.

—profitable have
not be

satis¬

In LBE

thing
is

goal,
the

'We

less.

we

a

v/.'1!''

but

entirely realistic, and
is fundamental selling.
cannot become so optimistic

about

growth

prospects

underestimate

the

that

we

planning, the
selling effort

work and the intense

'that bring it about. We do have to
sell to grow, as we always have.
We do have the resources, the
*

selling tools to do the job! First,
will look at the objectives and

we

■

'Benefits y\-;V

■;

magazines

illustrate
utilities

some

some

briefly
of the ways local

tying 'into

are

themes.

Finally,

of

will

the

I

national

will

tric

and

living—to

more

the

—

than five times

kilowatt-hour
as

selling
brings

sales

our

to

do

we

Here, too, local action programs
exciting, ambitious and effec¬

to

tive.

tives.

as

an

able and attractive way of

the

In

new

electric
afford¬

family

not

do

hope for

are

total

That

Where Do We Go From Here?

?•.

We

story of
is presented

electric.

to date. Now, where
go from here?
up

sales

the average home

The

everything
us

take

to

wait

'

and

lot of "dream" products

a

to

us

We

have

growth

our

reach

can

objec¬

goals by

our

planning, selling and working to
develop

our

already

established

one

complete package

markets. In 33 million homes they;

home

buyer gets all the

do

not

cook

electric benefits.

electrically

Continued

—

on

in 41

page

26

door

a

see

cool

and

wonder

any

that

last

the

10

years?

themes

at

the

local

help to

Again
incentives. The

buying

see

is

level.

told

the

benefits

of

convenient,

automatic, modern
electric clothes dryers. We outsell
the competition two to one in the
dryer
lot

market

of

work

but

to

there's

be

exclusive

still

done.

a

Nearly

eight out of ten homes have. no
electricity—
clothes dryer of any kind.
;
family
In
the
water
heater
market,
Better
Electrically—to
we've been waging a long, hard
millions
of * American

benefits

to

how

show

the

sell

it

selling

customer

influential

two

flameless

of

the

whole

,

-

can

Live

convince

.

fight. We

homeowners to select Total Elec¬

4000

tric Living—to show builders how
electric

house

salable.

In

prob-

1963

our

national

of

is

ad

an

In

has

1, V

the

last

been

water

hard-hitting program for

there

that

kilowatt-hours

a

the

year

heater customer

is well worth the sales effort.
•

is your program
sales leadership.

convinced

are

plus

from each water

heating

more

homes

new

It

discuss

salient

more

■<

periodicals.
They are de¬
signed to create a desire for elec¬

flameless

I

dryers

trade

makes

Then

all

directed

merchandise flameless electric

year selling messages ap¬
in five outstanding consumer

ing

efforts.

in

This
pear

of the unified national pro¬
gram that spearheads our market¬

scope

in

and revenue

living.

want

that there's plenty
competitive selling going on.
We're giving the most
emphasis to
Home. .profitable load builders, but we're

comes

living. We

clean,

as

Is

Similar

we
■

is

range

to electric

market

New Ads Stress Flameless

Tt

key

Medallion

target

are

home worth

living

I

emphasize

electric range sales have increased
;from
one-third
to
half
of
the

selling tool from which
every
member of the electrical
industry benefits.

ambitious

an

electric

modern.

fied with any¬
Edwin O. George

the

much

the

wiring installation; cus¬
tomer and dealer contests; a post
lantern as a bonus to range buy¬
ers; advertising using the "flame¬
less".
theme;
other
advertising
using demonstrated customer ben¬

concept
and

sales—we will

This

as

at

of

EEI

fident but not

next ten years

Gold

programs

because

of

Electric
is

companies

as

of

of sales resources.

use

national pre-selling program well
into its fourth successful year un¬

period of
growth — con¬

Our

to

looked

Electric

to

we come

com¬

Living. Now,
the ultimate, the Total

of

Program
programs

action

and creation of new ideas. They
represent careful planning and ef¬

to

-

Live

have

the

as

local

at the local level, and the sales
plans of our companies show that
selling is not taking a back seat.
They show use of proven ideas

study common problems."

this opportunity to discuss our in¬

segment of the

every

We

ponents

Advertising

well

,

value

The national program is an ad¬

by the industry of a Market Planning Council to coordinate and

It's

the

done, LBE needs the full support
of the entire industry.

Electric utility companies

up.

appliance servicing and team work.

on

Electrically

market with strong selling themes.
To do the full job that should be

to go

average cost

Better

demonstrates

reach

—to

reminded

are

of

unified national leadership. It
must, however, be expanded into
more
media with greater impact

to fear competition

or

capacity for flameless products'

the volume

as

cautioned

are

"Utility heads

heating,

benefits

of

41 million without electric dryers, and

need to subsidize electric

no

Live

,

Program

for example, 33 million

are,

million without electric dishwashers.

there's

]it The

no

products to achieve the goal

sought, Mr. George adds, when there

real

con¬

the

Figures provided show that the market,is already estab¬
There's

the

sell

adver¬

will

heating to key people in
building trades with ads geared
to them.. v

past,

goal of at least doubling kilowatt-hour sales in the next

lished, and that the ambitious selling goal is realistic.

to

be

we

electric

present and future national and local marketing programs is keyed
to

Again, in 1963

..

-

reviewed the plan and
of the Live Better Elec¬

trically

market for the electric

new

nave

purpose

ership through LBE,'. plus local
selling programs, are creating a
industry.

tinue

•

our

:

of Total Electric

:

»

magazine—and will be

format in

i

25

heater

utilities.

for flameless

several

there

years

strong resurgence

a

in

by local
"guaranteed

programs

Some

offer

satisfaction,"

others
special
fi¬
nancing and others rental plans.
One way or another electric water

heating is getting strong

promo¬

tion.
Sales efforts
the

other

are

also directed to

components

total

of

electric

living—lighting, air con¬
ditioning,
refrigerator - freezers,
dishwashers, dehumidifiers, auto¬

NeW Orleans'

matic

INVITATION

tomer's

to

of

billion dollars have been invested in

new

and expanded

industrial plants built in the immediate metropolitan
Orleans since World War II.
This record growth
cause

to

its invitation to

area

electric

industry also finds in abundance many of the chief resources of
our
country
oil, natural gas, water supply, power, sulphur,
salt, furs, timber, cotton, sugar cane, rice.
.

.

Investigate New Orleans
A

note

to

as

a

prospective location for

your

this

cus¬

Better

for

We

leadership to

customers

the

convenient

The
in

a

electric

our

Industrial

complete

dition, thousands
tially heated.

Public

Service

Inc.

Serving New Orleans with Electricity, Gas, Transit




hKEvi UK

more

In ad¬

are

par¬

Subsidization of Electric

Heating

Many

companies have intro¬
special heating rates. It

to

be

carry

its

new

electric transmission line

345,000-volt

River.

This

line

across

provides

a

the Hudson

"Thruway of

Power'', linking Niagara Mohawk with
Consolidated

Edison's

pool. It's

Mohawk is

one

system

more way

in

a

vast

Niagara

planning today for the

power

needs of tomorrow.

emphasized,
however,
heating will not be

electric

subsidized at the expense of other
classes of business. Lowering

price to attract
ness

Hudson, N.Y. be-

near

tCT) ing built by Niagara Mohawk

power

that

Orleans

year

partial. By the end of
there will be 1,300,000

or

homes heated electrically.

duced

of the 300-

elec¬

heating. Utilities in every part
actively work¬
ing to promote electric heating—

must

one

steel towers

important ingredient

Total Electric Home is

No

Actually it's

#

most

of the country are

this

TEXAS

wiring

living.

busi¬

Development Staff: New Orleans
Public Service Inc., 317 Baronne St., will place its assistance at
your disposal.
1

New

Live

tric

Orleans, industry enjoys a unique combination of ad¬
vantages. Here is a port—second in the nation in dollar volume—
that is host annually to 5,000 ships — ships carrying the world's
resources to industry's door — ships carrying industry's
products to
world markets. Yet, in the immediate vicinity of this great port,

ness.

to

table

the

'

New

.

and

of

living promotion.

continue

capacity

a

opportunity.
In

desire

guarantee

of New

proves that
key industrial center of the nation be¬
industry to locate here has been an invitation

New Orleans has become

part

More and more companies have
Housepower
programs.
This
is
most
important
because
Full
Housepower is an essential part
must

a

washers

Electrically.

INDUSTRY

Over

clothes

appliances—all

more

must be profitable in its own

right; good load

NIAGARA

MOHAWK

heating busi¬

now

and

in the

INVESTOR

OWNED

•

TAXPAYING

Chronicle

The Commercial and Financial

opportunity

in-a-lifetime

Marketing Leadership in

sell portant .to

to

complete electric living, f
Other
salient
questions

i

.

raised by

Our

predictions for a shorter

other

between electricity and

and
clothes dryer saturation at just
50%
and electric water heater
saturation at 30% by 1972 would
kilowatt-hours
alone—equal to
two-thirds of total residen¬

ing structures to be sure they re¬
flect a willingness to attract prof¬
itable

and more than

Nor

134

about

billion

these

mean

from

uses

tial sales last year
the total for 1955.

The

kilowatt-hours

850

lighting

about 83 watts per

about
for

year

per

averaging

lamps

30

—

lamp. Increas¬

ing the average wattage by only
5 watts would add 50 kilowatthours

3

customer each year—
kilowatt - hours

per

over

energy,

must

billion

customer each year — over 3
billion
kilowatt-hours more by

per

The

selling.

negative

always

will

pay

more

product. We must
emphasize the many

better

the

continually

the

plus values not possessed by

competition.

V

facts

more

U

With

thinks of.

industry

an

we
about

file

on *

customers than any
■

into

trapped

be

we

As

have

business.

new

customer
for

effectively.

industry X can
aid' of data

the

processing equipment we can get
these facts when we heed them;
we

identify the nature of dif¬
of
customers and

can

We

also

can

in the electric industry. We

For

not

sit

new

products

example, the changing popu¬

lation mix.

million

about 3

With

nical

a

efePcMoCeUvinng convenience " We
Efforts to

them

gram

of

must

into

use

customer

a

long-range

pro¬

planning.

market

We

marketing intelligence,
communications
and

teamwork.

"marketing intelligence" I
mean planning based on customer
research, economic projection, new
product development—the collec¬
tion

of market facts to

the

facts

to

market.

guide our

application of

judgment and the
these

products to tap the growing
V-:

new

markets.
The

.

of

demands

meet

It is said that study

without action

is

futile—but

tion

without

We

must

recognize

that

will

be working

study

can

ac¬

capitalize on them. We must see
the possible pitfalls and overcome




The

housing is also
trend to

postwar

suburban, single-family dwellings
was
an
advantage to the electric
industry. Now we are getting a
return

to

apartment

1955,

products

-

electric

-

8%

facturers

must

be

alert

We

create

to

e^blish™en* °f
I11S* He
01

also consider

to

conditions

^commitment of

but"

have

a

Such

build

to

resources

to

Mr.

plants.

-new

Council,! believe,

a

find

-

guidance needed
A 4 profitable all-electnc

insure

.

our minimum

.

"we

ice

g

Senior Vice-President
Greenwich, Conn;,
wif; before hi'g death

.

that
growth ob-

ways

and

first.,

areas

per¬

do

serve;

we

live

not
we

We

Marketing

genuine

our

tomers.

regain

to

It is

more

as

our

off

..a

for

concern

cus-

favorable

for

outlook

an

so-

These

change.

the plus factors.

;

$13,485,893

9,734

Increase

6,463

Utility Plant (Orig. Cost). $92,169,516

$53,941,773

Sales

Served

(KWH)

5,155
(Elec.)_
101,785
90,511
609,381,451; 431,529,000

Company Capacity (KW)—

5,700 ■'

185,405-

-

competition keeps us stepIt might be called "oppor-

makes

•

136,960

$7,795,655
.

3,271

$38,227,743
" J 545
\ 11,274
177,852,451
48,445

NO.'DA^;v

little

smarter

%

1

1

SO. OAK.

1

SERVING

^

1
475

1

j

plan

creative,
have

and

a

little

a

....

v...>1

/■';..■.

be

•could
ness

to

inability
sell

—

this

will

not

happen.
We have not inherited
the right to share in prosperity
we have not helped to create. We
plan.

sell—this

must

We

must work.

We

will do.

we

The day's activities

will include

goif an(j tennis tournaments and
a
st0ck exchange and dinner in
the evening.
The

entertainment committee
of

Norman

Wilde

T.

of

janney, Battles & E. W. Clark, Inc.
and

James

Weeks

Roger

&

p.
Co.

Roberts of Baker,
as
co-Chairmen;

Decker

B.

of DeHaven &

Townsend, Crouter & Bodine and
Robert S. March of Schmidt, Roberts & Parke.
Norman T. Wilde
is aiso Chairman of the
and

mittee

Roger

Golf CornDecker,

B.

tee.

unwilling-

or

and

'

Club, Flourtown, Pa.

judgment Chairman of the Tennis Commit-

The only serious minus factor

.

Reservations for the outing can
be made
Jr. of

through Joseph L. Pyle,

Kidder, Peabody & Co. who

is also Treasurer of the association,

Morton

Join

.

KancSell, Others

Raymond Moore Co.

(Special to The Financial Chronicle)

'

3o;hAVn1fura7sc7„vE.n«o?erethbee,Edi;on BEVERLY HILLS Calif/—Morton
Electric

v

Institute,

Atlantic

City,

New

POWER

MIDWEST

COMPANY

.

„

.

i

r%

Butcher, Sherrerd Branch
ALLENTOWN,

COMMUNITIES

Rhoads is

Sherrerd
.

Pa.

offices

§quth Madison Street..

i

—

Karl J.

representing Butcher &
from

D. Hodges, and
joined the
staff of Raymond Moore & Co.,
Kandell,

Gerald

w. H. Hodges, III, have

Jersey, June 5, 1962.

i
UPPER

little harder, be

a

more

)more faith in our own
and leadership.

7

iMlHUyf

work

us

little

must

I mm i-P
I

?

"

PHILADELPHIA, Pa—John J. F.
fherrerd of Drexel & Co., President of The Investment Associa-

consists

.competition cannot be
On the other

hand,

$21,281,548

Customers

;

/V,,4-™^.

1

,vu;

underestimated.

i

a

Transmission Lines ( Miles)

.

AlinUlSti

| tunity in overalls," the force that

_

•

9

A

'

AJd The
what are the minus fac-

L

ANNUAL

Stockholders—

_

Phlla. lllV. ASS II

live for
and fi-

success

4

#1\

T^1

sincere customer-minded-

a

::ping;

of

..

{t

»tors?

Operating Revenues

y^ar.

j with a high note of confidence, ing will be held on Friday, June
(Look what's working for us—we 22, at the Philadelphia Cricket

im- phave

are

Number

hig

earlier this

an industry that
considered the cus-

always

cial and economic

; ;r::1952

r,

Dire^tor,

'
tion of Fhiladelphia, announced
with customers. We I I No wonder we face the future that the association's annual out-

.closely with allies.

1961

rune

nd

reputation of

and

■

in
J.

was

the strongest unity of purpose and action, the best personnel, the promise of new products

1961

participation

made by George

^ cbair

the most. important thing
have to sell. That is, the serv-

the

of

for

of

has

•

Director,

and

provision

jectives will not mean a weakenmg

He is a Senior Vice-

President

} ness,

Notes from

Carr,

C.

Frank

Mrs.

and

mjt, N. J.

can pro-

-:^>I must emphasize, however

op¬

direct sales contact and still work

must

,

^

re-

vide long-range

good job

valuable

lost

.

Barrington, 111. He is a Senior
.sources just as we can plan ahead Vice-President
and Director.'
;
.for-the; commitment of financial
& Mr^ MRes pelikan, Summarketing

our

develop markets. We jnancial strength will always be
this to third par¬ :in direct proportion to the quality

They have done
we

.

Chester AY*-Laing,
is President of the

.firm,

the

then delegated

ties.

AT

lb

T11

man of the Board.

can

affecting

Chairman

Winnetka, 111. He as Vice-Chair-

can

industry.'! It

the

.common

..evaluate

them.

ourselves to

+1a®

•

Chainmri

.

T

•

can

our

'

-provide national coordination forrif Mr.-- & Mrs;
the-study of marketing problems Rye, N. ;Y. He

'I"

\r/r

must

group

t™''
is

Rarrington

Edison Elec-

This

utilities.

nation's

appliances

we

a once-

The members of the Board of
Directors of John Nuveen & Co.
and their families who joined in

even

•

tablished through the

electrically.

It's

was

Market Planning Council be es-

a

electric

new

used to sell most of the

provide

market

The chair is na^ed for the late

John

to improve long-range mar-

keting effectiveness.

sonal contact

this

S1^ •©*. Cnicago, announced the
action.

that we must do

.however,

innovations that help the
apartment-house developers build

In

the

wnere

Nuveen <1864-1948), who
born of Duxch parents in
-siastic support of company em- Denmark ,and came to Chicago in
pioyees—it flows through to uni- 1866 with his father, a member
fied leadership
at the national of a prominent Amsterdam shiplevel. The Live Better Electrically building
family. He established
Program is an excellent example John Nuveen & Co., in Chicago
of teamwork in action. I believe, *n 1898.

tomer

service

have only one chance.

Glen A. Lloyd, Chairman of the

been industry teamwork—it
begins with the loyal and enthu-

Re¬ •meeting

we

.

,

B°ard of Trustees of The tJniver-

ways

portunities' for direct sales com¬
munication
with •: customers'. We

of hous¬

to

EEI

of

products.

ing starts to 26%, and it will go
higher.
/
■;
We

•

the

minds

? }Ot men .s hearts, mmds,

.

'

Our* most valuable asset has al-

exclusively

'{■ Through

way.

it was established be-

r)ossecsion of men's hearts

^

customer needs them.

satisfy ^injure tor ail ot us.

that

products

—

Division

search

house construc¬

from

and

when

available

add much to the efforts of manu¬

central-city and
house
living.
Since

risen

***

others research 'trie Institute, staffed by manwhich our growth agement representatives of the

customer wants in an

the

apartment
has

tion

be fatal.

the factors
for us and

of

nature

changing.

By

We will need

durables.

consumer

unusual joint

are

servicemen

trained

that

see

-

fit

an

most important struggle is for the

nruwt.

by while
on

aP™*ted A? the new chair.
endowment forthe, chair

cause in the modern world' "the

en-

our

design of products with
easy, low-cost servicing. We must
help the customer to operate his
appliances property and we must
courage

should

year

.

T

s

mustWinue

re¬

added to our na¬ depends.
tion's population, the total market
Most authorities already predict
Research Activities
•
will be bigger. But there will be
there will be 2 million electrically
more young people, more old peo¬
We must explore new ideas for
heated homes by 1964 and over
ple and a smaller proportion an application in the home; In com¬
5 million by 1970. The 8% of the
the productive 24 to 64 age group. merce and in industry. For exam¬
customers who will be all-electric
will use nearly a quarter of all The demand for young people's ple, we are -promoting all-electric
residential
kilowatt - hour sales. needs and gadgets, and for the living without a suitable electric
-'u""
service and recreational incinerator.'.
This is good but we can do bet¬ health,
:J
ter!
We have the sales resources needs of the older segment, will
We must imaginate new Jdeas
grow faster than the demand for and turn them
to do the job. We must, however,
into useful end
people

1972.

■'

an-

on

in the world right

resources

*

,

^tnd resno^lbilftv for
undertaking by John Nuveen &
liance servicing
It has^i marked €o-' a natlonal investment bankeffect
Se consular choice of
itS direct0rs and

sponsibility
for developing the
Suggest Market Planning Council
package in which' energy is: mer¬
I propose, for consideration, that
chandised. We have the best tech¬

and
economic
changes show certain factors that
will affect our market planning.
social

Coming

"

.

created in

was

in-

our

...

vinitv ..School of The University
has^ keen announced,
rid-ramous Protestant by¬
°gian Paul Johannes Tillich,

i

maintain

terest

.more
more

assume

-

;

establishment of the John
^,uYeen Professorship in the Di-

faced with intense

flkn

WA-mnst

ferent- kinds

their levels of use.

are

competitive markets.

the

among

are

We must use them

best available.

continually review our pric¬

must

ineffectual

typical customer uses

research facilities

We

tition.

technical

and

marketing

Our

it may be that price will
never
be equal—nor must it be.
At the same time, however, we

example, electric range

s'

product competition. We must take
the leadership to build our own

_

ence

advertising but only about

out of five of these advertis-

one

TP-n rl rairo

manufacturing
millions on na¬

ing dollars goes into markets we
consider
competitive. I do not
to
be
critical.
They are
increased two and one-half times mean
since
1952
while
spending on faced with intense brand compe-

they

growth?

XfiiTTAnn

IN UVCt3Il 11/110.0 Wb

sales efforts.

spend many

tional

them.
This is the challenge to
25
marketing leadership.
still dry
Let's recognize our direct com¬
durables
and non-durables less
clothes on a line—in 48 million
petition for what it is. They are than doubled.' >
homes they wash dishes by hand.
'.
reaching into our markets just as
Another,
In 47 million homes there is no
factor,
the
needed
we
are reaching into theirs.
I'm
air conditioning — 41 m i 11 i o n
for
productivity will
not afraid of this kind of compe¬ pressure
homeowners do
not heat water tition. They live by the image of mean that productive processes
will be more and more electrified.
electrically—nearly everyone has cost. We have the better product.
a
refrigerator, but only a few The volume of sales goes up while How will competition in the com¬
mon
market affect us?
Will it
have the combination freezer type
average cost to the customer goes
mean
new
that does more for the customer
opportunities or new
down. No other product can say
and uses more electricity while it this!
problems? The answers to these
does.
questions are yet to be found. I
do know one answer — the be^t
Better Products Cost More
What about home lighting? On
We must not be trapped into marketing -we tan do — planning
the average it is not more than
one-fourth
what it should
be. useless price competition. In spite ahead and being ready to move
in the right direction at the right
of favorable price trends which
What does the sale of complete
electric heating
mean
to our gradually narrow the cost differ¬ time.

For

Thursday, June 14, 1962

.

images

company

our

our

appliance

allies

week, more leisure time,
rising expenditures on services on
services
compared to manufac¬
tured items—service spending has
work

Continued from page
homes

it is to

as

are

'

Growth

Electric Utility
million

.

.

(2778)

26

at

•

1071

9465 Wilshire Boulevard. Mr, Kan-

dell was formerly a partner in
Adams &, Co. Gerald and W. H.
Hodges were with Holton, Hen-

^7,,^..; personCo.^;;^..-..-T

Volume

195

Number 6168

♦

.

The Commercial and Financial Chronicle

.

.

(2779)
experimental operation- at Morris,

Innovation :and Progress

first

commercial

w

placed in

By. James W. Cook,* Vice-President, American Telephoneand..
...ii.
Telegraph Company

service

1 enormous

neighboring electric utilities who share many, of .the same

three
'

and

,

what

From

herself,

reach

—You

all

•causes

pursued^.

dial

can

code

a

incoming

•

•transferred,

be.,.concerned

to

seems,

same

-

way

man

A

—^You

as

soon

be

it

as

•

*; u

v*-.»

v

.

We

f

e e

s

v

p

e

c

i

i

k

a

a

1

i pv v

h

n; s

1

w.i t h r4-:t h

a

is

,

;
v

t h

At the

and

often

the

And

\

of

both

poles

like' most- other

business

number

a

the

talk

about

three

modern

'

of

innovation!

function.

~

—new

of

what

it

~

should

a

business

be

is

doing.

and

the

first

>

;

-

.

:

-

•

estab-

research

.•

Founda-

tion;; reports

t that
sortie
15,500
companies now have research and
development staffs..* And of the

what

This

might money spent on basic research in
These Obligations are somewhat- be called conceptual innovation.-- the United States,, business pays
different and greater than those
Of course, innovation in prod- 40% of the total.
•.
of most businesses. Neither of our

industries
can

one

divide

can

.ucts and services is the most ob-

Ameri- :,vious variety. •

the

••-

-

It's because

people into customers,. Oh the*, :. We expect this year's car to be
hand, and general public on both different and better. As-one
of Df. McFarland's : competitors
says

in his ads, "This

I've

new

car." Even the foreign

of

been

the

that

asked

-to

discuss

responsibilities

is,

the

one*

responsibility

to

novate and to progress.

Innovation
word.

V

..

be

can

'

,

an

tisements,

ambiguous
•

...

although

\

To innovate means to introduce

something

But newness and
-always
the
same

aren't

thing.

Novelty

equated

with

always

can't
worth.

M11??'c; n\

sense

things and

new

father than
I

see

tions:
all?

a

concepts of value

novelty

Why must

What

encourage

are

new

basic

ques-

innovate

we.

at

innovation?

the problems?

function. *

number

in

and.

programming

dustrial
As

the

able

calls:; for ■* enhanced
ability to manage. This leads to a
kind

third

have
-

of

called

cation -service

instruments.
vious

•'.

•••

'

but

it

of selling
pretty ob¬

■

was

by

no

later, vigorously
of selling
you • sell
service
you
take on the obligation of
making it valuable by intercon¬
necting more ; and more people
of

this

vast
our

came

the

But

concept

if

wider and

over

.-/•,

.

seems

obvious then. Theodore

promoted

conceptual innova¬

-

so

Vail, who

innovation, which

Conceptual Innovation

today,

means

instead

It

wider

areas.

Out

have

come

our

concept

network
ocean

of

communications,

cables

the

and

next

evolutionary step, the communi¬

*

Conceptual innovation encom¬
both product and produc¬
tion
innovation.
Chronologically
it often precedes them. It is an

cations
Both

passes

sharp

satellites.

•

~

these

sense

'examples show a
of the market. Henry

Continued

on

page

28

*

specialists

:in

training

and

Uke,' to

the

and

psychologists

in

much

and

im

soci-

of

basic

research,
efforts

on

?

.

also spends

*

consider¬

personnel research,
off-the-job management de¬
sums

on

velopment

in universities,
not directly
related to job productivity. The
underlying purpose, of course, is
on

20,000

courses

in-service

LITTLE

courses

to stimulate better management—

and, in turn,

ideas and

more

PEOPLE
-

All kinds

more

of people

" M

own

Detroit Edison

innovators.

In

1^,000

business

our

we

have found

it

possible actually to create an
atmosphere conducive to innova¬

'

12,000

tion, and then encourage and re¬
ward it. One way of developing
this
atmosphere
is
to
rotate
younger people especially through

10,000

,000

varying assignments

—

line

and

6,000

staff—in various

4,000

transfers. Thus a man with
initiative and enterprise can bene¬
fit from a range of different ex¬
periences and, we hope, can con¬
stantly look for new solutions to
old problems.

to

arrange

for

departments and
company-to-com¬

pany

2,000

END OF

telephone business sell communi¬

talents, rather, than relying on the
flash of genius to strike a single

.

16,000

eh

example
of
conceptual
innovation. He suggested that the

depends in large measure on their
success ih drawing upon combined

our

18,000

Eh

need to progress, and
bulk and momentum of

us

another

service.

i

and

gives

—

that

progress

Jthe effectiveness, of their:

{

MARKET IN NEW ENGLAND

w

can

father-in-law

ologists. t? V ;..

<

DEVELOPING THE ELECTRIC SPACE HEATING

.

connector

restriction.

Bell's

area. This bewildering array

Ca ; Business,

..

wire

without

innovation,

:

Graham

special*/'

a

of different

member of the. group.

;

only on
cables, -7 whereas
the

put

Hubbard—Alexander

research

:

*

• -

innovation

t

classifled directory m the. past ten
:years*
r';
r :
It's

Southwestern

used

Gardiner

The. modern corporation looks to

a

^pedklfstsf

bee^ added to the

,

be

His

—

^n^e^fro^tir^and-

900 new headings-have

V. :yOffice

the

bold

expect

.; ^ew Skills and Methods

Lowine^ smofca^bord^^^;'this

.

.

can

and

business associate

difference,

our

very

tion.

?.i

automobile.

wheels.

on

The second kind of innovation:

for

spirit of increasing
capacity for living that the
What are Bell System developed an - elec/tronic central office. It went into

the conditions that

organization—to his

jzed

;

...

used

But

I

us

an

novel

—

,

Experimental Electronic Central

such-

as

*

Laboratories'
be

to

seems

as

—new skills and methods of pro4 ddcihg." goods arid services—has

slices.4s

of creating

number/of

teinember. jthat: . i
emphasize ^un-.'

become characteristic -of.

example,

v

So I want to talk about innova-

tion in the

.

there

cated

concept

and development staff—to satisfy
this appetite. The results have
^ been impressive, r v £/.<.•<
;.. -

-

somewhat dubious.,-

-.Defines Innovation
-

his

;'also"tended"to become

-5

a

hoop was an innovation. It caught
-the fancy of young people all
the world, but its value to society.
was

you

they

Henry1 Ford,
no
one
had
thought of mass producing some¬
thing as expensive and compli¬

and more to specialization within

a

com-

contihning -engineering , improve."

be.:,
hula

The

has

£^£^5

new.

value-

name

petition has learned that we expect the new and'the improved,
If you see the Volkswagen, adver-

share,
in-

we

to

come

pneuma¬

production had

a continual flow of new and improved goods and services. And
the businessman has turned more

the other. Our services touch, the

daily lives of most Americans.

this effort

of

the customer has

:

inactive

.

.

technique

:

Science

crimped

moment

however:

^

The National

and

to

til'

clear advantage of one over

no

product. the

the

laboratory by private industry in
that year, industrial research has
gradually taken over most of that

—new

have

with

Labora¬

problem, have
another splicing

still

first

wheels. The

in Chicago complete with
assembly - line, ' conveyor
belt,
interchangeable parts and plantwide planned
scheduling. But un¬

same

the other. There is this

innova-

of

source

But

lishmerit'•;■" of

products and services,
skills and ways of proinf-ducing them,\*,
~ ; *'*-.*
—new concepts and definitions

public.

main

innovation.

y-

kinds

the

were

tsurviveounderever-changing
m

conduits,

industries

our

that business to-

me

national and world conditions.

a r e

of -important

obligations to

special

to

we

h

share a commontechnology.
r

we

heritance

In

<

s

same

and

■

to

not

-because

-

James W. Cook

seems

be

%day

country,, satisfy; growing :-v and - .changing
just markets. We must innovate even

e

'

-VW>'
respects

new

office,

It

Bell

the

on

mass

plant

aspect about

the

tically. This results in a joint
equivalent to a soldered joint but
wire twisting and stripping are
eliminated,
'"v.-.

has a" deep necessity to; in- Tions in goods and services, is the
electric power novate. We must innovate \to keep
product of organized industrial
companies up
with
domestic
and 'foreign research and development. * Bethroughout-competition. We must innovate to fore 1900,- independent inventors
e

unusual

that

two wires

a

I

;she >never / " —These and many, other
seems to be satisfied and is-always and different services..
seeking the betters-way. • v
; ;
The
electronic
central,
man,

is

developed

does^-by..innova-. available.

.tion, .And,:like

rather

this

was

nation

man¬

illustrate.

me

been
used
to" produce
muskets.
And the Sears, Roebuck
Company
in 1903 had opened a mail-order

new \ method

method. In the Laboratories' ver¬
sion
a
capsule is slipped over

■

-Vship.,-

The

to attack the

evening.

line

can

tories, going down another route

immediately connect

can

a. busy

all

which

the

pairs

Ford
a

principles of

savings in time and money,
well as improved quality. • —

as

friend's

.a -

Henry
visualize

standard

Then about 50

dividually;

fre-

* calls:- to

say,.-to

the

the

means

quently called numbers—local or
-long distance—by dialing just two
,'ydigits.

with .progress. She. progresses, the;to

produc-

tive relation-

.

to

agement skill. Let

be dipped simultaneously into the
solder • rather than soldered
in¬

;'v

biologists 7 tell
—You can arrange to allow
us* progress -seems to. be.,some third party to be called into:
sort of natural necessity; Naturetelephone conversation. >-.y

occasions
in
which we in the telephone business work with
the staff of the
Institute. This, is a most cordial
many

are

•

method.

;

services.. For-5 ip-

be. able

home for
There

with "two " under

.

^

obtainable, and the relationship to profits. Business needs
the right amount of challenge and of favorable, climate bat, ^
Cook adds, the problems of the regulated industry -include:;

{ adequacy of profits if research is to be properly

.

the electronic
furnish a wide

can

new

t-^You'11

j

upsurge

Mr.

Jersey.

i.stancf:ril:^,v;'^;j;;

as

benefits, and problems—and comments on the unexpected business
both

variety * of

.

^

the telephone industry. Discussion defines
basic kinds of business innovations—their positive needs ami -J

regulatory problems

New

expression of the ultimate in

Under this system four wires are
twisted simultaneously, compared

memory,

central, office

importance of innovation is the them^ of; Mr., Cook's address

the

to

in

developed by

was

Southwestern Bell cable splicer.

a

willbe

„,about. 1965. Because it .is almost
incredibly* fast
and
has ~ an

'

The

unit

*

This-.method

,

^Illinois; in November, 1960. >The

27

1958

1957

1959

i960

1961

Total kilowatts of electric space heating installed in
homes,!
stores and factories which use no other heat source.
,

Western Massachusetts

Electric Co.

Principal Electric Subsidiary of

-

-

WESTERN MASSACHUSETTS COMPANIES




I

.

ran

week

across

example just a

an

ago. Returning to New
York from the Midwest I met one
of

or

so

able young

division heads,
beneficiary of the ro¬
experience I have men¬
tioned. He told me that he had
our

himself the

Over 106,000 of them in all.

They're young and old; they're
engineers and salesmen, career girls and housewives, senior
citizens and youngsters, factory workers and college professors.
This is true of all the investor-owned electric

companies that provide
across

America. It

electric customers

Detroit Edison.

a

means
are

light and power
network of electrical service clear

that the

served

majority of

our

country's

by people-owned: companies like
.

savings—not tax money—have built the Edison
power plants and lines that serve over 4 million Southeastern
•Michigan residents. Each year, investor-owned electric com¬
panies like Detroit Edison pay more in local, state, and federal
taxes than any other industry in America.
Detroit Edison

firmly believes that people-ownership is the best
ownership—for its customers, investors, and
employees alike. ,"
^
^
-

kind of business

tational

been

looking
\method.
;
.

,

at

a

splicing
*-V.'

THE DETROIT EDISON COMPANY

new

1 .•«*■

«

-

Their invested

A PEOPLE-OWNED
ELECTRIC POWER COMPANY

28

The Commercial and Financial Chronicle

(2780)

Up

:

cussed

Innovation and Progress
an

vfil
The

phone.

But

made.

been

inventions

these

and

useful

automobile

they saw how
could be more

if

profitable

more

thought of in terms of an untapped
and

ever-expanding market.

good to keep, vfi mind,
that having the concept
produce the
results. Technological innovation
is usually needed for the realiza,

It-

is

ty

though,

necessarily

doesn't

the rash of pre-

Remember

tion.

shortly after World War
nation

dictions

with wings, that every man would
have his own Model-T airplane.
vision

runs

ahead

This doesn't mean that
technological
innovation
won't make it possible.
nology.

novation

sort
can

of

conceptual infrom

come

the

definition of what busiyou are in. I think
of the

simple

as

-even

•

service

'

o

^at
0f

there

services

wouid

if

new

were

and

want

equipment

we

came

up
.

Out

what

this

of

for

was

come

Beyond this, we

pr0duced.

never

perception

us

kinds

mr.

our

telephone busi-

Dark green? Light green? And so

marketing philosophy and a*de- on up through a hundred possible
partment to implement it. I was shades? Cetrainly not!
So you
fortunate enough to be assigned, provide color charts and miniadepartment. It pressed
hard for innovation in both teleto the

is

new

question

no

that

we

to

keep on increasing our
efficiency. Even so, the social,
economic
and
political, consequences of large-scale technological

automation

the

problems

so
vast, and
human disloca-

come

that

insures

have

ture color phones. Also you search

rate

a

an

been

automating since
We recognize and
grave social
respon-

the early '20's.

the

accept

sibilities

that

major
technological innovation.
Every
lmportant decision reflects
this

have

I

Solid progress is firmV

outlined

for you

briefly
innovanew
products and services;
skills and techniques;
and
kinds

tion:
new

of

.

.

uses

yet

as

are

Major technological innovations
a
way
of opening up un-

have
the

^business

businessman has to

them

progress

beginning

I

mentioned

make

'
v

this

.

.

at
;

.

]\j0 discussion of innovation
be

the

imperative,

Innovation and Profits

.

considered

0ut

of

he
of competition

The pressures

and

-

dream

fast and accurately as

as

can.

accompany

ly linked to at.
three

.

for light that
undreamed of."
up

can,i<freamed-pf..ysqs mdmarkets. But
at

—

acceptable solution of these very important considerations. In my own business
we

level. Indeed, one of the most exciting prospects
is that this
hew order of control will open

are

of

gradually

only

they ness office must remember to sell
with this new green telephone. If the
transaction is over the telephone,
viewpoint
came how
do you describe "green?"

innovation—

an

human problems.

The girls in

There
have

del

that pe0ple really

felt

we

tech¬

of

future

Another

But

^^e^'fnrprX'tfon' Jan
we.lW?
on

But what kind of green? There
wante'd more from us than we had are probably hundreds of differcust0marily offered
Some cus- ent shades of it. After some retomers asked for things we had search you choose a shade. Then
needs

II that soon we would be a

Here

(its)
advent, man's control of
light has reached an entirely new

were

dTe"d ""energies
up.-

said:

year

"The list of potential applications
of the optical maser could be extended almost indefinitely. With

_

catching

magazine of June last

fully automated production line
without serious repercussion.

new

worked hard to meet these

any.

a

ph*®J®(world War''II
change*
After WorldjYar
Take the simple example of the
^tw^to meet
and growing green telePhone- ivs easy to come
^and<? to bas^c service
up with a green telePhone, once
we

or

matter—could go the next step to

problems too.

An

operates.

business

auto-

any

—

other-large manufacturer for that

are

example Innovation Causes Problems, Too
to^t ^ Se! with which I'm familiar in my Gne of the first problems is the
basic inventions had busings sis
nGW em" organizational
consequence < of

invent the

didn't

FnrH

manufacturer

Thursday, June 14, 1962

.

stress there

..

changing conditions in which your

27

vaae

Today I doubt whether
mobile

.

benefits of innovation. But I must

.

Continued from

to this point I have; dis¬
,the,.positive needs and

.

mention

can

with-

complete

as

of its

relationship to
profit> A11 business has difficulty
explaining the function of profit.
Regulated enterprises have had
than their fair share of this

more

problem.

v

Well, how does profit relate to

broad new managerial concepts—
innovation?
out color descriptions which are
u
meaningful, such as moss green, along with some of their attriA common aspect of all
does well-being relate to
point. The dairy-products induswhich is what we actually call it. butes.
three is how far innovation will change ari.d- progress.
try has felt the pinch of calorieAs you can visualize, the introtake
you
once
you
throw open
Arnold Toynbee's theory about
counters, cholesterol watchers and new marketing ideas from people duction of color upset — in fact,
civilization seems to say some¬
fallout
worriers.
Some
of
the in all departments. Perhaps most uprooted—a traditional method of the gates.
thing about this problem.
His
dairy industry has been hurt by important of all, the department operating the enterprise. SuddenUnexpected Helpful Business
idea, as I understand it, is that so¬
this combination.
carried the new philosophy to all ly things had become more comResults
cieties grow when there is the
But Borden has done quite well, operating levels.
.
plex.
And with the subsequent
For instance, we have been sur- right amount and kind of chaldespite these new conditions. I
This new philosophy was based introduction of the Princess Telejudge one reason is that someone on the recognition that consumers phone, speaker phones, automatic prised — in some cases, actually lenge. If the environment is too
astonished
by the strong up- harsh—as it is for the Eskimos—
must have decided they were in were tired of the bleak war years
dialers, and the like, the simple,
surge
in business we get from they don't grow and they don't
the dairy by-products business as of shortage and makeshift. Sure,
easy
method
had
been
transadding something of value, true innovate.
They spend all their
well as in dairy products. And, we were a public utility. But if formed into one that was
quite
therefore, in the chemical busi- people wanted two-tone cars why demanding. Thousands upon thou- innovation. I saw this at first hand time just hanging on.
when we went out to the farms
ness
and the food business gen- should we force them to be con- sands
on the other handy if the enof
telephone people the
erally.
tent
with
a
one-tone
phone? country over had to adjust to and ranches with new rural tele- vironment is too easy, as for some
Both local and South Sea Islanders, why bother
Among other things, Borden's Black, at that! If they wanted to change. This, as we all know from phone systems.
>,
sells garden, hose, detergents, ink, choose among several automobile our own experience, takes some long-distance calling jumped up ^bout-.innovating?
remarkably.1 ? .1
vjcanned
clams,
cupcakes
and models, why should we insist that time and some doing.
perhaps this same philosophy
.". formaldehyde.
More recently we have had, this . can be
Tfyey have even* a single-model, single-color phone
Thus innovation can strike right
applied to conditions that
come out with a fresh and canned'1 Suited
all tastes?
at the heart of the precept that1 e&pbriehce when we improvd bur affect the vigor and initiative of
diet-drink line, thus keeping cuscircuits by supplanting business. If the business climate is
Our
marketing
decision
was the less you disturb the smoothly overseas
tomers who no longer buy some based on another condition that
running machine the better off high-frequency radio with ocean too severe, if the incentives aren't
of their other products.
electric utilities appreciate all too you'll be. '*
cable. The rise in calling has been
/
*. i
'
there, a business won't innovate,
This kind of conceptual innova- well—we were a regulated busiThese are illustrations of one more than we assumed we could R will spend its energies merely
tion
is
profitable.
Last
year ness and the times were infla- kind of innovation-oriented man- reasonably forecast, even allowkeeping alive, just trying to surBorden's net sales went over the tionary. And rate increases don't
agerial problem. They are trouble- ing for normal growth, changes in vive.
ness

Borden

Company

a

as

case

in

phone instruments and in communication services generally. It
served as a clearing house for

ni

.

.

,

.

^How.

,

—

r

...

billion

dollar

mark

for

the

first

time, and their net income of over
$30 million set a new high for the
sixth straight year. And it pays
off

for

the

consumer

with

course,

new

too,

and

of

useful

products.
Another kind of conceptual innovation is a recognition of the

easily and usually not fast some but given a little time and a
enough. A greater share of the little patience, such problems can
consumer's
discretionary dollars usually be smoothed out. Others
could help us over the infla- are much more serious and comtionary hump. What was for us a plex.
conceptual innovation helped
Henry Ford simply could not
keep
us
growing—and
in
the have brought his vision to reality
process
the customer benefited had he stayed with the old handicome

with

products

new

and

services,

craft methods of

car

manufacture.

calling habits and the emergence
of

business patterns.-

new

As

look ahead to the exten-

we

sion

of

ocean

our

likely

supplement

communications

cables, to the
of
satellite
the

pos-

intercontinental,

all-

and

to

sibility

of

number,

customer direct dialing,
expect that overseas call-

we

now

ing will jump from 4 million calls
100 million annually by 1980.

to

Further

Meter Reader sheets.

innovation

prove

may

this expectancy to have been
modest.
even

Already
the

a

busy, busy accounting tool,

computer center is being put to

work

solving engineering and operating

problems, analyzing distribution system
performance and controlling inventories
fast

as

as

these

applications

can

be

These

For

programmed.

tion, we can take the continuous
optical maser recently developed
by the Bell Laboratories. It is a
complicated device with a simple
function. It disciplines light waves.
Unlike radio waves, which tend
to flowm an orderly rhythm, light
waves

Look, Alice,
a

"Reading" Machine

pioneer in the application of electric

computers to utility problems, PP&L

has,

part of its newest computer

as

center, included

that
al

new

methods and

mean more

way can

the

have found

stubs

Scanner also has the

marks recorded in
certain inks such

as

a

minute.

of

waves

restoring
flow

out

the
coherently—not
order

and

first

optical

case

masers,

to effectively meet increasing

needs,

attract

and retain

competent people and stimulate and

A

development

of

tremendous

c a

that are being sent
telephone network at

the

obstacles

some

ing

day
of

some

and
over

on

_

programs

over

but

or

.

kind

communi-

potential. The continuous
1 maser will produce a
single beam of light with enough
capacity to carry all the telephone conversations and televi11

this moment. Of course,

ability to "read"

this

cation

sion

maintain investor confidence.

but

steady stream.

a

_

nec¬

or

method of disciplin-

a

irJ- bursts, as was the
the

with

many

those recorded

erratic

as
is

these waves by pumping them
through a ruby. This has the ef-

opens up a

The

ordinary pencil

this

ing

feet

op

in the world. It can, for example, "read"

and

pev0|^ ^mmunications.
Well, the Bell Labs
scientists

in

essary

IBM commercial installation of its kind




efficient and economic¬

operation. Only in this

amazing instrument is the first

cashiers'

equipment

Company realize the PROGRESS

customers'

400

new

Optical Character

an

Scanner.
This

its

operation, PP&L is constantly seeking
out

A

described

are

why, until
they haven't been of much

now,

In many ways,* in every area of

effects of innovamajor lllustra-

another

incoherent

we

to

as well
light circuits.

about

ve

probably

the

be

there are
overcome,

hope to be send-

your

data,

You

advances

conversations,
as

television,

been
that

light.

I

The

a*?™*:

ex~

SciCTltijIC

suggest that

our bustoday is too harsh
and uninviting. But it is rugged,
And we do have the challenges of
growing and changing markets,
foreign and domestic competition,
We need a favorable climate to

climate

meet them.
And

we

need research. The Bell

System alone has spent almost
$14 billion for research and de-

yelopment since the end of World
War

n, and i

this

can assUre you

Ihas paid off.
without

wherewithal

the

and incentive of

such

research

without

adequate profits,
is impossible. And

research

country

our

Won't be able to compete with the

^he

0f

res-j.

world

free

and

with

^he Communist bloc. There is that
much

stake.

at

For

think reguiated

our

part,

I

industry is mak-

headway in getting this
Yet it is a constant,
uphill battle and we still have a

jng

some

underst0od.

^ go

wa

quite

;. It is

true that there is a

tendency these days to charge top
management with the immediate

responsibility for everything:
good
profits,
non-inflationary
prjces

ethical conduct among em-

as well as the flavor of
pudding in the company cafeteria. Even so, I would say that

ployees>

far

as

innovation

as

is

concerned

prjme condition is that top
management feels responsible for
^—and constantly and

consistent-

ly probes for it
When you get

right down to it,
of sorts to put
with the discomforts of inno-

^ takes
up

vat/ion

a

courage

Not

the

John

Glenn

or

gCott Carpenter kind of courage—

like that. But
willing to take
appropriate risks with people and
programs, and will put up with
the many and perplexing anxieties 0f change.
nothing

the

kind

dramatic
that

is

reading
science

has been making in the control of
rpu~

i wouldn't

ordinary examples of

are

the unexpected

tion.

;

iness

A'fflCTiCClYl

*An

address

by

Mr.

Cook

before

the

??th# Annual Convention of the Edison
Electric
Institute,
Atlantic
City,
New
Jersey, June 6, 1962.

Volume

195

Number 6168

;

The Commercial and Financial Chronicle

;

'

.

New Horizons in Electric

i

:

The

tions

(2781)

high-voltage

we

interconnect

Comparisons

•

have today would not be

with

Other

Countries'V

possible but; for the development
over
the
years
of innumerable

Take

a

map

lines

-

Power Transmission
;By R. G. Rincliffe,* President, Philadelphia Electric Company

J We have thft finest
'-

assertion,

power

Mr.* Rincliffe

the "successful

intercommunication

But

further

>

W.ard

technical

which

-

we

advances- toJ

constantly

are

|f js

and

about

be

these

pools,

extended

to

one-third

2®

have about 12 times the

we

gggge t
Ave"»
SffihMtet*
t

m

and

remote

energy;

interchange -of.
hew inter-regienal ties/; t

and

The lines we expect to be built
w<7
by 1970 wiu be built mostiy by
investor-owned
companies*
Be-

Travelling through Russia, as I
;
„Our industry is unique in:* the did several years ago, one cannot
scope of research projects under--help but be struck by the diftween 1960 and 1970 we will be
taken jointly "by power companies ferent attitude they i have -toward
spending '$8
billion for "transand'' equipmehb- manufacturers* Power production. Their empha- mission
facilities.
with the twin -goals of reduced sis is on providing power for in,
,
-costs and increased reliability.
dustry while ignoring the private ;
National Pooling
- A

4working!*;':

predicts $8 billon in financing will be' forthcoming for

100,00ft miles of additional 4ines by 1970, opines all major systems in
U. S. A. will be on an interconnected basis, ftomparison made shows

RUSS|a
the size

higher voltages.wilt demand"

even

"

abcut. He

high-

?rol

system in. the world and^ backing, his.

credits

states, put it next to England. It
is 50 times as big. Put it next to

speed breakers, protective relays,
lightning protectors, and, • above

'

building for the important'contribution made toward bringing this
r

prosaicjsounding * devices:-

within

will

areas not now interconnected. Almost every week in the technical
press we have read news of project announcements — 345,000-volt
and even 500,000-volt transmission

United

the

of

added

,

■'

29

w

.

,

y

.

*

A

'

-

have 12 times 1he transmission lines of U.K. and 5 times that of '

we

.

r.'r

U.S.S.R.

The

tatter's attitude, : he ^observes,

emphasizes

for

power

industry and neglects the consumer. Mr; Rincliffe prefers the

supe¬

_

For

riority of our approach wherein, unlike Russia, planning is from the
'

bottom up;
r

supply is welcomed by the writer.

-power

-

iToday, exciting advances are being made in-the-electric power
business.* The power needs of the
nation* are
doubling
every
10
years
we

■

,

,xr.+u

lines*had been added,

And

Electric

a

imental line

near

American

com-

exper-

Pittsfield, Mass.

Electric Power Com-

working with Westinghouse,

pany,

linked by high-capacity transmission
lines
operated
completely

coordinated to combine maximum

have

the.,
technical abil-^

neighbor concept." In-

750,000-volt

has achieved 775,000-volt transmission at Apple
Grove, West
Virginia. ;
'
1
p.
Pennsylvania Electric Company
has

your

tegrated

achieved-

pools

of

generation

,

/

larger'
of

G.

R.

di?sTanrcegsrebyr

-Founded

this

upon

.

system.

;

as
,

'

operating at
part of. its regular
-

•

•

•.

,

.

system of planning is al-

A substantial part of these new

facilities represents

a

strengthen-

ing of interconnections between
major pools. We believe that for

sia, direction comes from the top

building our plans out of a close
understanding of our customers'
wants and needs. The result is

graphic areas served and the number of systems included. Beyond

that in

country we have the
finest power system in the world,
Electricity is available to virtu-

tional savings can be realized by
interconnection with neighboring
large power pools. Through this

ally
everyone
in
abundant
amounts, just as it should be. A

arrangement
we
will, in fact,
achieve a national interconnection of power pools and systems,
and will secure the greatest bene-

Research is being supported by
our companies at industrial laboratories, at universities, and in our

has

electric

the

him that

an

less

than

one-third

available

power

hppn

and the record shows that

the

served

nnH

'

of

needs

pvnansion

Th

intPrrnnnprtinn

the sound

on

to

realistic
we

of

have

people

the

nooline

has

addi-

fits of pooling,

American has.

n.ir ~nnrnaf.h

wpll

these fully integrated pools

this

Russian

based

,

in .'

1928 was the Pennsylvania-New
Jersey-Maryland Interconnection,

Rinclitfe

.

13-mile /line

a

460,000 volts

.

premise

/ Their

V

V

most the reverse of ours. In Rus-

.

reliability with minimum cost of
.generation. / ;
; : :
L

"move

blocks

Massachusetts

operation of

panies quickly passed beyond the

vhelp

units,

much

1928, backbone transbeing built throughnation. Operating prac-

was

tice of these interconnected

gen¬

ity.; to

Western

Company
is • cooperating; with
General Electric and others in the

..

..

by

the

out

meet them.

we

,.*•

'

mission

We have gone';
to larger and

and

industry became the

.keystone Of production ana mor0

power

erating

power

•

ex¬

larger

mission. Tests have been made at
voltages up to 500,000 volts at
altitudes up to 10,500 feet.

-

the - advent of World War

I, the

supply system
to

IT

t

,,

consumer.

down. Here we begin at the bot- many practical reasons power
^ torn in our districts and divisions, pools may be limited in geo-

of several high-voltage
transmission systems.
: ■ v,,

panding
and
strengthening
our

''

<•*. '

Service

•:

nmgs

and

—

are

-

Public

•

Company of Colorado, in cooperation
with /several * equipment
manufacturers, has established a

The F.P.0.Vforthcoming long-range study of the nation's

-

instance:

-

been

technological

judgment of the most competent
and experienced utility engineers
|n
the
world.
Our -system
en-

Ours is not a static industry,
We must plan ahead, but new
developments can make our plans
obsolete relatively quickly. Air
conditioning
has
changed
the

operating characteristics of almost
all our companies. Electric heating
may change them even more
radically. We must remain flex-

my company is a parti own facilities on a broad range _of courages" "progress" a"nd"""allo/s Jble.enough to meet any new conbefore, in 1927 a three- problems dealing with high-volt- flexibility. For instance, think
th_
FpHpr„,
/greemerR with Penn- age Transmission and system op- what would.have happened^ if to pSome monthsjgo tte Federal
1920, without regard for economic
Power & Light,, Public eration
|^ice Electric and Gas, and
One such study, known as the and operating requirements, a !£at
power
by 1970. This will .requite an ex-?*:?h^delphia Electric had resulted^ Cornell "Project,Ms pointing the national transmission grid at 120,gtudy pf tha nations power
penditure of $8 billion, financed
construction of-a 220,000- Way to underground cables in the 000 volts had been? built OurfWjdy; * a™ certa:in ttis study
wholly
byu the
investor-owned volt, transmission Ting that is still,,345,000 to 500,000-volt range. In country's economic growth would, .^ll
utility companies ! By - this time an important link in our inter- fact, based upon the work to date,: have been strapped in by a system
it
Executives and
and
probably sooner all major' coJ^ec^e^ operation. . y
: ; Consolidated Edison Company has that would soon have become outP:
from
industry have
systems in the United States can
Our pool has grown consider- been able to place an order for a moded. Luckily, this never hap^
operate on an interconnected ^ly over the years. At present, 345,000-volt cable.
>*
: pened. We were able to grow *f£eed to1 s^e im an advisory
basis
1 "
there are 12 electric operating
develonin^
tran^mi^inn
where growth was needed and capac.Hy in the stuay, ana xneir
'companies included in it and the '*
keep our power supply ahead of experienced judgment w 11 be
Jt seems to me that the point
generating capacity is op- systems we must not only con- tbe demands of the nation.
value to the Commission. We are
of our business is to provide elecera|ed as if it were "one system." sider the latest technological adOur plans for the future follow
Pr°viding the Commission with
on^ Wilf hflvp air the power fhe .terconnecuonsfreely over the in" vances, but we must face geo- the same kind of pattern. While our industry-wide studies of
one
will have all the hnJer he Power flows
between
these
eraDhioal nrnhlems
wpll
anH
they are coordinated, they remain power capacity and pooling, and
wants whenever and .wherever he.
.companies and the combined load
plural—and close to the needs of doing all we can to be of assistwants it, reliabiy and economicalis met by the economic dispatch remember that comparisons with |>he areag involved< Ties between
ance in other ways.
*
^
ly. Everything we do must be 0;£
energy throughout the pool. As
other countries will only be mis- major pool areas will be strengthannouncing this survey, and
measured_ against this ^purpose; .a resuit 0f this coordinated oper- : leading.
*
A *
ened, high-voltage lines will be
Continued on page 30
and all the elements involved in
employing

of which
The year
company
sylvania

higher

and

higher voltages on our transmission
systems. We., have annpunced plans for building some
100,000 miles af additional' lines:

=c(n

oUr

■

'

•

.

.,

.

mir

*

,,

.

-

.

,

a<3

.

,

.

.

ation

it

must be kept

in balance.

•

x

i

...

,.

.

smally plants were built to serve
the
needs
of
their
immediate
-

;

.Transmission

In

fact

was

formal

.

'

agreement.

...

limited.

^.be resit-ing benefits being passed
nn

to

p1](,tnTY,pro

nur

The estimated
.

interconnection

peak load of the.
this

for

WESTERN POWER & GAS COMPANY AND SUBSIDIARIES

summer

is almost 14 million kilowatts. Our

nearly,.like ^totai
capability is almost 16 milwhat we today call distribution, jjon
kilowatts, and-we are still
But as the demand Jor electricity
;expand|ng
0ur
operations.
Relncreased
and
technical- knowlcently we have strengthened our
it

more

was

edge, grew, itand larger generatbecame pos&ible to
larger

bpild

units

ing

them

with

higher

to

and

interconnect

of
higher and
Little one-staconsolidated and

lines

voltages.

tion

companies

then

combined

day
were,

other

small

systems. Many utilities to-

power

represent
formed

^companies ^hat

2|es f0 the north and
be

add|ng

^smaller .corporate*

f|es

we

the

f0

will also
west

12

groups.

Operating

will" be capable of

an

interconnected
national

Net

"enabled them

income

before

—

mor^

ferred

minority

interest

interconnections
being made in the early
1900's. notably in New York, the
company

were

Pacific

Northwest, and New Eng-

jand

earlv as
early as

United

State

1908
i9Uo,

a

a

man

map

showed




the

of
01

the
tne

begin-

Shares of
a:.ii

of building up interconnecticns is not as simple a
as

drawing

from an
area
of use
map

a

line

on

a

of supply to an
and then to say,

area

"Baildlt" Technology, geography,
and economics
are

tors

and

and

pre-,..:.„-.;*rv.r,,

:

•

J

6,933,406

common

stock of

Westgas__________$ 4,679,212

3,873,409

cannot

be

important fac-

ignored.

common

stock outstanding

April 39-2,713,351

2,565,54V

-

Earnings

per

share-r-^

r,v k

On

end-of-period basis.

On

average

The process

matter

9,687,789

8,601,551

dividends

Balance for

pooling/, and
*4sparsely- settled * areas^

ample, - reliable/, and
economic begun to be able to-justify internservice, companies next began to* connections-of-their-own/"
pool their generating facilities for
mutual benefit. The record shows Not a. Simple. Job
Interconnect
that

12,293,006

and

cient units, To '-continue providing ; with "less demand for
power have"

As
.As

operating income

Net

operating*

basis.

pictrans-

that* interconnection

tn* function as-effi^/the

$60,229,364

;

transmission

consolidating
process ?ture today looks like this:
there was a continual mission lines cover the country,
expansion of transmission* lines so the *> highly Mhdustriaiizedr~* and
that in a relatively-short time the. densely populated are as^have de^companies'^had; ^established- back-. veloped into •advanced*'.stages ofsystems

1°61

These

gr0ups, which supply 97% of the
coUntry>g - energy
requirements,"*

the

transmission:

30

dvril

$71,759,267

revenues

on,

bone

ended

1( 62

interconnected

0n

mon'hs

and

Qur p002 |s on2y 0ne of many,
Nearly all the major electric
power systems in the country are
members of one of six principal

Our

As

Summary of Consolidated Earnings

-

soufh

nut_ofv the eonsolida-*-huna^-goon

-ies*

went

.

,

,

.

_. Certainty this
is how our industry has built the
power.^Supply
system in this country. At first,

areas.

a

reliability of our service is
improved, and our capacity requirements, fuel costs, and operabng COsts are kept down with

.Bigger and' Better Companies
^

under

the

,

i.

r

L

$1.69

$1.46

$1.71

$1.49

•

shares basis,.

The Commercial and Financial

•

30

Assistant Secretary of
Guaranty International,
Banking Corporation and Morgan
Guaranty
Internaional
Finance

elected

an

subsidiaries

Power Transmission

that there are 3600
electric energy in
this country—but one should not
—

supply system. As a matter of
fact, 40 investor-owned systems

headline news.
able to keep

have been

we

'A

of generally ris-

down in the face
jug prices.

•

,

Tiie FPC
•

*'

■

Strong Nation

a

;

'tk-

the

to

■

De Haven

burrent; transmission and its possible-applications in this country.
Philadelphia,'.'. •
ji »nn,lr Prn.V

electric

nation's

require¬

energy

_l"

" *

will, of course, be
only a suggested plan and not a
blueprint."
There, has been no
indication that it might be solidi¬
fied into a plan that companies
would be compelled to follow. On
the contrary, it will be up to each
"Our

follow

to

whether

company

or

suggestions

any

made in the study.
This

pattern

maintains

wisely

Eiectnc

thing

Jersey, June

5,

1962.

Morgan City

/

.

Officials

built

in

this, country

anty Trust Company of New York
has been announced by Henry C.
Alexander,
/
;
the

Board.

had

the

freedom

to

must

is

thinking

to

try

out new
techniques.

their

new

experience,

avoid

to

each

other's -mistakes, and to. speed the
progress

This is

of power
policy and

development.

practice that
we sholud preserve.- It is a proven,
effective way of meeting the na¬
tion's power needs.
The

a

development of

any

power

on a

multi¬

tude cf variables. Take this

single

question: Is it wiser to ship elec¬
tricity by wire or to build power

plants at load centers? Available
plant sites, rights-of-way, fuel,
transportation,
costs
can

are

vary.

equipment

and

involved.

Any

an

in

one

All
can

of

them

affect the

New

_r

;

„

.

York

'

'

.

is

Society

Ci

;■

of

*

it

v-'.y '

i

¥?'■>

o

>

-

Vice-President
Fairweather

A1

-

001

\ t*

1956 and

was

must be weighed before a decision
be reached.

;

T

^

joined the bank in
elected

vision

'Meetings

'

* -

>

-

•

-

:"~/• "■1

.

urn

^

r»

|_7'

Uean Witter JtSranch

Assistant

an

■

r\

.

nationwide

■ a

power

supply

sys-

—but

according to

is,"'a complete re-;
appraisal of our spending1 for sales
promotion
is
needed.
In
1937,
twenty-five years ago, our indus¬
try

was

annual

■

2.5%

devoting

and.-we
the

came

efforts

promo¬

the tail-end of the

was

depression,

of gross

sales

to

revenues

tion. That

sales

83%

surveys,

industry's agenda

on our

fact

The"

hard. Then

rrtemrthat is the envy of the world
:

program

priority
«

a network tele¬
should have top

support

to

way

Regional Public Relations
' "1

Parifip Poast

media of communi-

selling

were
war

dropped

and our

They

off.

fully recovered. Over,
MONTEREY, Calif.
Dean Witter of the public has never heard of the past 10 years they have been
weather joined the bank in 1933 & Co. has
opened a branch office'
existence- of a single power" holding at 1.6 or 1.7% of gross
and has been associated with its. at 555
Abrego. Street under the. pool or interconnection. Our corn- annual revenues. Surely, we can
insurance department since 1945.
management of Thomas E. Mc- panies have committed $709 mil- substantially increase our sales
He was elected Assistant InsurCullough. " - • - ^
^
lion to the development of atomic programs with profit to our cus¬
ance Manager in
1949.^
■*.'power — but 81% of the public tomers and our stockholders.

Treasurer

Elected

Dona

J.

in

1958.

Assistant

Arthur J

cast

York and

mass

cations, this is the most efficientarid we aren't tising it: Findiftg a
U

3dan Assistant stock Exchanges." Mr. Easterling : Throughout the industry we have
Douglas L.
fa manager of-the firm's Special been doing a good job,, but notInsurance Man¬
assessment bond department. - :
enough people know it. We have

"

Carter

ternational

the

TVTp

modern

>hip.: for investor-owned electric
companies in serving the American farmer,., :' . t • C. yX •
-

o+

H/r~v,+rt«iv„™,r.

f

to get our sales message and
overall
industry
story
on
nationwide television. Of all the

our

electrification
and isteps were initiated to develop
program that.will regain leader-'

ray,Vice-"res.

;

find some

way

recocnizinc

rural

on

sale! budgets.

our

Most urgent, we .must

recognizing

ference/

FRANCISCO, Calif. ^ Lawrence H. Easterling, Jr., and Irvjn
L, Ayres have been elected VicePresidents of Hooker & Fay Inc.

Ui

large

.

Mr.

the

of

WWUUU8

that can produce
thq^jreyenue, ,we will need to en¬

-

-

our

items,

refrigeration,

and

as

'

ager.

schemes possible. In each situation
economics

uic

-

increase

of the bread-and-but¬

the high-net uses of
electricity, such as lighting and

problems, we held a two-day con-

SAN

Also

,

need"' to

we

promotion
ter

>.77? °f

■»

-

well.

as

+v;i+

Security

,

promotion

>

•*

v

Hooker &

wcic

time,

to

program

strongly. At the same

more

.even

farm, industrial, and commer-

cial

,

1960.
aiuiuuutcu

facing

are

v

some

on '2^"include not only residential sales,

r,

Westchester-Country. Clui^.,-.j3Ut
$17.50 and reservations
York

advertising

trically

be made with Haskell Sweet,

\oriv

Clifford J. Kendall

'7 „'*'v

\ Sales

First: sales. Here we

\/This " year, too, marks the expansion 0f the Live Better Elec-

„

Society^ot $ecu-

Analysts, 15 William Street,^ New

Assistant

were

can

'

New

been

decision. There may be alternative

true

were

at 5.5 mills a kilowhich would- be less
than the cost of production in a
--conventional plant in that area. ' ;

•"

may

1951

has

our

vigor. We
ahead with

our

sap

forceful, -v well-thought-oUt
pro¬
grams. Let me suggest a few that
demand our most serious attention.

power

a

supply system depends

;

bank
and

ducing

Hold Outing

^?rnUi u01!

of

But

infect

it

mu:t continue to press

watt-hour,

^
Tariff

.development

let

the Pacific Gas and Elec¬ space heating has been growing
Company has stated that its .faster than many people thought
Bodega Bay: station will be pro- possible. It should be promoted

to

bank's

the

or

state .of

this

tric
■

m,

assigned

i

continue.

will

not

must

we

that

assume:

uncertainty

comVVl*X

.

/

•

course,

;

nty Analysts, Inc., will hold their

data-proc¬
essing appliThrough - the ? committees of the
.cations.. He
Edison Electric Institute they have
joined the
been able to trade the benefits of
ideas and to test

of
VA

•

-

old-fashioned,' AmericanjPre- projects • in < which electric -com- style competition. Expanding our
sented as a joint venture of -the panies: are " already participating. Live Better Electrically program
New York Financial Community Both/of these'-plants
is a good start toward meeting it,
are 'being
.and the University,'the course is discussed^ with competitive
but there is much more that can
conunder he direction of Dr. Philipp ^derations
in" mind.
And,
of be done. For instance, electric

The

Mr. Kendall

in the
methods
and
world,
and
we
have
done
it
.systems de¬
through the combined wisdom of
partment, spethousands of engineers in every
cializing in
part of the country. They have
system

power

groups
^5 A

.

looking to the future
in
charting our course of action, we

power plants,- in
Addition to the 23 nuclear power

Security Analysis) is opening
in New. York City, June 18.

Vice-President of Morgan Guar¬

a

:

have

«

.

Election of Clifford J. Kendall as

.

finest

..

H. Lohmann.

Chairman of

We

I

and

,

of doing things—at the com¬
pany level.
■
.•rr-""
the

I

*

do.

we

In

Operation^ of , Securities '• Markets sized Nuclear

^

^

responsibility and initiative where
it is most natural in the American
way

ill

the /Economics .of panies announced that they

on

course

mer

survey

individual
not

4-

before the

two
1/ V V y

political,, national

and international. It affects every¬

I?ectricnTnsUureAU°an„trc .City, New Capital V Formation - (Nature rand considering building commercialinstitute,—Atlantic cuy^NeS

Swidler's announce¬
of the FPC study stated that

Chairman
ment

The'University of Vermont sum- Vania.' And
V UX11U,
A XiXVl

.

.

* An address by Mr. Rinciiffe

i

'

•

unpredictable climate

-—economic and

m..

1

strength
our nation.

.many ways,

,,

1

is

that

business

a

/the

.

in this, country will conttaM to
g^thSre'^cKSxctoge^ ^ir,':
Power Progress
60 % of the
ccme.
as it has in
the past, from
July ± will kdmit W
jiawrence
In atomicpower development
total energy requirements of the
the flexible, inventive, and care- Griffiths to partnership-^
• ■'■V/r"'.'progress;
has> been : particularly
country and serve about 65% of
/.' y^evident/" This has been a year in
fully designed plans of investor-1y *
our total civilian population. The
owned
electric
companies That, ■ • .•-"/•/ .vvtv--./
l! which: the Atomic- Energy' Com-:
Interconnected
Systems
Group
while tailored to our customers'
*V';mission; pointed, .to the Yankee
alone, made up of electric utilities
plant,, as "the
operating in 3i states and extend¬ heeds,-fit the national interests of U illV. UJL =Vty^/yyy'Qy.-'^iAtoHUc^^pow^
Our
interconnected power pools.
1 • •// '
'/• V/-;*•
nuclear success story of 1961." It
ing from the Rocky Mountains to
the Atlantic seaboard and from They have brought an abundance Cjii TYI TYj pr* * r
] T^P t-'C :,Vas a year "in* which a new exof electricity—reliably and:eco'~-.'MUiH.Ali.yi.v
perimental -nuclear power plant
Canada to
the .Gulf of Mexico,
nomically—to all Americans.
'
Jy..'
; » '"/ went critical in Saxton, Pennsylsupplies over one-half of the
1

in

are

to

..

Townsend, Crouter & Bodine;
Building, -members';,o£

in power jhe $ew York and

We

vital

so-

,

T*ilTlPT*
Pa

Now, what about the future?

and. the
called "exotic" methods of con-. growth of
We .have
built the finest power system in
Verting raw energy directly into
the world, and we are determined
electricity. V!."// .V"
..7/
Another/EEI task force has been Up maintain our leadership..-. But
the fact is we are carrying on our
Studying the economics of directj business, in an' uncertain-and, in

j. ai tiiUi,

pttTt ;a tvf.T ,phta

.

Looking to the Future

-

Advance

on

attention

particular

J

'

Force

furnish approximately

ments.

Thursday, June 14, 1962

.

.

Projects
has been established that will give,
Task

.

fl TT| 1'

study can be ft

But the real progress

us.

y

v.

-' /?

the consumer
kilowatt-hour of electricity

a

/»

,

the average cost to
for

this that we are a
multitude of small operations that
are
not integrated in our power
from

assume

T\yr*r^ opri r] j-r\
"
IU Vy nOC/liU yv/; ./

And

of

distributors

DeHaven &

outage anywhere is

mentioned—and .r-em¬

have

For

r

}Continued from page 1

our

supply system has worked
well in the past. We have made
our
service' so reliable 'that an

and

Commission

1 the

of

power

r

references to it, the
members of its

in subsequent

that

shows

record

The

29

Continued from page

phasized

.

Investor-Owned Power

Morgan

New Horizons in Electric

staff

Chronicle

(2782)

Mr.

banking division
Jr

V.

Bryden

a

Juason ^amilS

and

Government

Wallace

r

p

Jr" g°vernment

^

department.

June 5 admitted

telle to

was

program

;

regional
1961

1951

1956

a

lightly. At the

relations

public

The

first

held

was

two. weeks

Philadelphia

remember

confer¬

one

there

in

revenues

(thousands).

(thousands)

......«.

$

8,066
410,113

5,235-1
284,484.

3,170

-34,415

customers

Common stock equity

28,283

21,897
l

27.0

20.6

2.14

the

at

1.85

bring

the

the
steady

over
a

years

trend

pooling, and our diversity and
helped pro¬

high load factor have
that trend. We

New

electric
story to the public.

.help

36.1

(%)....

and

York duce
World's Fair in 1964 and 1965 will
solid
exhibit

Our

Number

all

going ahead with others/ in
parts of the country.
..

146,167

that
been

from on-site generation. Our
increasing generating efficiency,
our
expanding
interconnecttion

met with such success that we are

Kwh sales

time, let us

same

away

and

ago

has

competition

of

form

this

take

to correct this situation,
to hold a series of

decided

ences.

Fiscal Year—

To help develop

Gregory W. Bou-i ; our Industry.

partnership.

we

Electric

never

cannot name an electric utility
The gas turbine and other forms
• company thatj is working on of on-site generation of electric
C. E. Judson & Co., 120 Broadway,1 atomic power.
• . , •
power, -including the
fuel cell,
New York Gity' members of The ' This shows a serious. lack of have been getting a good deal of
American: stock Exchange, on; • knowledge, about vital aspects of publicity lately. We should not

Treasurers

Richard A. Kimball, Jr., in-

Mohan

have

Fair-

industry

have built
for

competitive advantages
that still exist..

ourselves

Rates

"

Earnings

per

PROGRESS
for

Land of

Infinite

twenty

years,

Report mailed

on

request
•

the

Variety. Here,

investor

own

ed

lumbering, mining and tourism

iu t i I I ty

agriculture

to

form

dynamic, growing

economy.

Mt. Rushmore-land

we

to

serve

the

are

progressive

Hills region.




a

In

meeting
competition,
the
7
Member Companies
; /
-rates we charge are always a vital
: I. should
also mention that dur- 'factor. More than 70 years ago,
ing the past 12 months the Insti¬ Edison wrote: "To my mind the
tute has substantially increased its raising of the price from % to 1%
service to member companies by per lamp-hour is a bid for com¬

up
the publication of
on such important subjects
TVA, REA, atomic power, our
/ research
programs, •" and
many,

studies

.as

BLACK

HILLS

proud

Black

v

stepping

,

blend with

Expansion of EEI Services to

s

In

.

An Annual

Serving,

2.50

common...

YEARS

TWENTY
OF

share,

many

POWER and

LIGHT
r

COMPANY

more./

These/are

•

:

only

a

few

of

.

the

developments of the past year, but

they

reflect

an

industry

that

is

petition. I -am a believer in in¬
suring the permanency of an in¬
vestment by keeping prices so low
that there is
np inducement to
others to come in and ruin it."
;Our industry "requires a much
larger plant investment per dol¬
lar of sales—4V2 to 1—than most
other

vestment

broad front.

i

On

i

This larger in¬
two-edged sword.

businesses.

moving vigorously ahead along a

one

is

a

hand,

it

allows

techno-.

Volume

logical

in

our

rates

also recognize the
maintaining our

good job of telling the facts about
cur industry. According to a sur-

trouble.

growth,
low

as

of

of return

rate

to

as

so

to

keep

possible.

as

importance

We "have
we

so

Of course, we

Over-all,

,

raise

is

time,

works

the

the

hour

then-

livlne
living

in-

price

I,
kilowatt-

per

from
as

two-thirds

al-

War

our

.

rea

,

should

role. It the

its

resume

not shrouded

a

economic

America.

proper

applications for gener-

ation and transmission loans
in

the

secrecy,

nature

of

those

about

un-

favorable to govern-

favorable

Site

'

sWft

There has been

resi-

group, is
what it was

present

m ^ur

themes.

pooling
We

long run, though, it

ship 3 to I. Our national advertis-

may

problems

those

not

are

petition,

of

mg^and
J^ver ^

com-

or

In every sales area our
lem may be how best to

take ad-

vantage of the growing opportu' opportu...

ahead

of

us

industries

as

offset their rising

find

more

to

power

ways

"-PIP,

-

1

-

:

;

:

-_,-/

Agencies ;; V

.

'

as

continue

to

their

multiply

produc-

One

on
the
assembly

our

.

drawing board and the

necessity of contending with
Union, it does not seem
in, the pubiic interest to put tax
money into electric power facilfr
the Soviet

recent

shows

survey

customers

are

well

with the service they

ties

Transmission

ah

All

our

dicated

are

on

a

pre-

the

discussion
are

vances

in

other.

cu.ssed

at

relations

making such rapid adtransmission

that

Larzelv

because

and

lnousiry s

meeting

'

Shen

P

o

of

'the'luncheon

at

IUPcbeon
Ana-

f

t

the

be

Investment

ri

7

i

Hieciea director
w

W

Keen Butcher

has

efforts

companies,

our • country
undisputed position of
leadership - in
electric
power, and this is one of the chief
factors contributing to our overall
national -strength.
For
without

been

Philadelphia

'a

elected

partner of

a

Butcher & Sherrerd

an

electricity

A

Hotel,

uncer-

the

Horace

lysts Society of Chicago to be held
today. June 14, at the- Midland

eleS

holds
world

111

snlaker

west

industrv's

of

i

W^Wr^e CornoSn °wm

days we require a greater
degree of unity than ever before.

oi
utility

i

director

of

BWsboro

an

announcement
by
Frank,
President.
succeeds
Herbert

Robert
W.
Mr.
Butcher
J.

Watt

of

Baltimore,

Vice-President of H

Kook

Gerald Elias has been elected a
Vice-President of H. Kook & Co.,

Inc., 54 Wall Street, N. Y. City.

financed
one

in

the

free

of the facts of life

no

compete in today's world. Our

-

industry is dedicated to the proposition that we shall maintain

Now

America's electric leadership and,
yes, even increase it.

Reed, Whitney

HEMPSTEAD, N. Y.
name

—

of Meadowbrook

The firm
Securities,

•

and still feel that these "government • power installations should
not have-been built in the first

in

the

electric

nroven

"

*An address
30th

Annual

tIectnc
Electric

by Mr. Fleger before the
of

Convention

lnsmuie
Institute,

Atlantic

A

jersey, juneT ?962.

the

inc., 91 North Franklin Street, has
changed to Reed, Whitney &

Edison

City,

New

stonehal>

<Jnc>

elear

intercon-

It

that

gives

we

a

over

a

'

train

But

we

'

also believe H is in the

leave the job of telling the1indus-.
try story to our national organic
ago
now
tell only part of the zations. Our companies^ raust "tell
story. Constant study-is required-the industry story, too.;*^ ;■:
to

really

-Oj " -J

.

:

.

•
s>

Take

public interest to point out that if

cannot-gover£ment

nection, and pooling that predictions we were making six months

and

over

Government Ownership and
7
Inflation

regional .public ;

our.

meetings.

indication

this

-

the company they know best. This 1
is one of the problems being dis-M"

leads

the

of

company

utility industry that' they have in

_

We

confidence

same

coin, and disnaturally to

same

one

sense®

these

c*

to

be

to

people aren't so sure about >place we have recognized that it
parts of the country. In is jn' the public interest to coother words, they do not have the
operate
with
them.
W'e
have

well-designed,
supply
systems.
Sales
planning and system planning are
of

in

nu

,

7

goals through
EEI, NAEC, ECAP,
other industry or-

But

1°

other

reliable

cussion of

the

our

v° "'t

modern industrial
society can exist, and without full
electrification, no nation can hope

nothing,

same

continued abundance

of electricity and on

sides

that

sure

is

industry in the government power
category. Although we have felt

serving them can supply all the
p0wer they will need m the
future that 1s g00dt but trese

Interconnection *n<l

Transmission,^Interconnection and
Pooling
sales efforts'

are

there

today is tot there, is a substantial
portion of the total electric utility

getting,

and

when

market. But

that

line-

and

IeasuTrer

w York btock

a

CHICAGO

common
as

,T

Analysts to Hear

our

our

^

M- c-New:

Cannot

satisfied

are

cooling

our

since

™

indicate that the power facilities
needed for America's requirements

compan*es
y witft
the bulk ,of the
byrdei* on the companies. A coordi ated effort is neededi,

household appliances

nf

tain

^

the

atta^

costs, as farmers
of using electric

increase

tivity, and

programs
?'great deal.to:

uadustry. groups... and! hy.

1.ncT.e®sed automation to

since

T

1

been

knowledge

our

ganizations.
\

Cooperation With Government
.

reach

to

the leaders

During the present period, extending ftr the foreseeable future,
jnt which our country is ca ught in

p^ wer business

,

,

nities

been

also

experience,

a

tiiis imp rovemeftm our position,
Hut they ca nit dathe
The problem of terlmg th~
telling
Re public
the facts ^bout the
the facts about the power

potential,
chief prob-

immediate

have

in the larger

exoerience

electrically;
:-;j

01

^cnange.

-

.

idea in the

new

We

.

facilities for decades.

our

have

resources

^

In the

L

be that-our most important sales

a

industry.

:

♦

.

such groups

the publie favors investor owner--/

,

Pooling is not
power

rmict

to live better

r

° ,J,"ne u1 Jame®
i?nLi
It
met
Si ct T"1??
Ah 7

ago the value of working together

ownership and1 investor ownership,1;

*

.

in the public mind
in helping farmers
>

T^YVP£I Q11Y*PY*
liCaoUiCl

pooling will be among the major

activities of cne REA must

as

-xt

™

and

as important; our companies must
reassert the position we once held

77,;.

choice between,Federal

a

interconnections

31

Epstein, Klein
Ao

more

subjects I have disthe achievement of

pooling
rfa

hear

and

g r e a t e r '

government, not
also adjust for

artivitipc W

,

13th annual

our

will

we

be brought out into the light. Just earliest days. We learned long

feeling for Federal ownership .of
power facilities. When surveyors

a

-the

and

Thp

,r

a

strong, public

is no

to

should
taxes foregone

fitour

ofopinion

fevor

Ia™r\
Today there

2%,

the

cussed,

loans

could
be exposed.
Wherever
a
G&T lean is considered, the eeo-;

Re-

During

convention.

were

money

more

,

-

become

more

Conclusion

.

government

.

ment intervention, but the attitude
toward the investor-owned electric
power industry has also become

over

has

World

customers,

less than

rccnrd

of

in general has moved leftward and

demonstrates

since

receive

we

dential

of
of

cost

average

same

the public

in

cLrlv^

tripled

good

the

At

nrirp

nnr

vears

most

Opinion

backdoor approach-

as a

expansion

numic analysis on which approval
or disapproval of the* loan is-based
should-reflect the actual--cost of

This

and

sense

practice.

it

While
While

last resort.

a

good

tprp<?t

the

be

to

simply

business

by

the

j
bave
tr|ed to highlight
an
in the interest of the
extremely complicated subject
nation's farmers ot the rest of the
investor-owned electric utility
the American people.
>
industry and its role in a strong*

.

have been doing

we

published

vey

new

it, too. But rate relief is and must
continue

v

to

reasonable- cost, and ; search Corporation in March, durcommissions recognize ing the last decade public-opinion

at
regulatory
money

(2783)

power,- not

in-

material

the

serious

assure

The Commercial and Financial Chronicle

.

leads to research, and hand in
hand with all of them are problems of public relations. In the
present climate, no phase of our
activity is more important than
public relations.

offset

and

other, it involves
large annual fixed costs, and, as a
result, if, for any reason, our
growth were to stop we would be
in

.

being used

that

labor

On

costs.

.

business. Sales problems lead to
system planning, system planning

advances

creases

6168

Number

195

a

in

1

;

w

good look at the

o

•

wishes

to
inflation

faG^ie the problem • of
xnd work' toward the economic

gtrength and stability
must

have"the

our

nation

facelof

the

keep up with what is happenEach of the three' industry or-'.
protrafcted RUoSian threaf/ vve can
mg at any giyen moment as well: ganizations : that
are
concernedsuggest a way in which $50. billion
as to keep
track of the .timetable with public relations problems.—
can be.ma.de available for really
for. the future.- Because of-this, it EEI, E C A F*,. and PIP-—-hasi been re-j-gs^ji^j-gi " government functions
is essential that we continue the
apprariing its programs* gn<J ac- such as national-defense, over the
two-and-a-half
year
study
of tivities, in the light of present' next 20
years ■
r
power capacity- and pooling being conditions and
needs/Many com- ^ ; y A"
» '
; ' 7 ';
'
•
•
carried on through EEI, with em- oanies
are
conducting, similar *•--"l that." period electric comphasis on the long-range plans reappraisals, both of their own
.

cur

7

.

'"• "

;

Atomic.Power

;

of

the

;

■

other

and

most economic

terms

our

sense

customers

•stockholders.-The

and

atomic

must

work

asr

an

out-

standing"

example of the kind of
sound cooperation we need, and of
its effectiveness. Yet, even here,
where

have done

not

may

/ must

be-doing

much, we
enougll We

not-

allow

initiative

we

the

so

slip- to Washing-

ton
ton

Fed pro 1
int.prpst
Federal interest
is wholly unlike

hv
by

rtpfanlt

default.

Federal
*

It

-

power

interest

does s/npt

production' of

in :hydro

involve
power,

power.-

.incidental

number of sites. It
ment.

at

a' limited

can

1"

govern-"

entry into power-production

.'.for its--

means

own sake,
be located

at? plants.'that-

anywhere.,

;

-

advocates of government owner- -proximately 4.10 ninion. ine total
ship to push the Federal Govern- dram .on
taxpayers
funds in
ment further and further into the 'S^P^-;tnaintahiing...the present
power business. In dealing with -proppriiom ofrg<wernment power,
this problem, we have m-aihtained
-'Order of
that if is rio.1T^^in the publip interest ^0 ■;^iU^n^ytcna>
enough-. to
for the Federal Goyefnmeut to PfQyide/purfyriiple -cpntmental air

the -.attention

of

the .....American

.

,

funds -from

national

^

r-

brochure
pi

.

Treasure Chest

r

Contains specific,

•

in

Cv^A^ct VVect"

the Gio

ng

reliable facts
on ' 1 "
basic ' resources; tells about '*
"
11
1
living,
conditions^ climate,-educational stand¬
ards, labor stability.
;

rrpipsile- 'defense j budge_triof

concise,

recent surveys show

a

the American

people

us. '*•

Inquiries field in strict confidence. '

-;•*

-

•;

'field. 'Regulation

RE A''governmental

;;

Today,

the

government

power-

to.be putting
..

greatest force behind..expansion
from

its

>

REA

..;

White, Manager, Sales & Marketing
Dept. B 5, Utah Power & Liuht Co.
Salt Lake City 10, Utah

is

*

"utility/business,

oas-: it.

government

is

purpose

-

•

-

Hi II
*■

.'

"JTr

>7

•

■

is,in

some

.

y

' 1

- -.

'/I

T""

f/\'''
r

•
noh. Yet-what-gov.-'•

properly the recognized function

;
:.

/
' '

'

'
7

j-

.-: •

''

;

0

•>

w
,

-

--V

.

.

•; \...

'

t.i

-

f
••r,

1—

[JJM.1
.

.

-

#.1

./<M- d

of handling

.

«-4

^

ernrtleni^power/.advocates, keep
saying,;in effect, is that govern- ^

is \ deviating yment'is",, not- capable

original worthy

-

--

recognized
function- in'-/ the. '"-TT-T

Mm

a

theih;htbersi rOporation- of business-;by

g;Rur.al^ Electrification-Ad.of, the.
ministration.'

D. H.

majority of -concerning the abilities and ftmc-'"
agree with tions" of. government in the power L

^

/

oil

.

,

.

/

28 page
((

defense and other important"gov-.■.■.W'; entire ^zp-year.. period, 1 .ax
eminent, ' activities r to .^finance .Present rates.,
-j ■--- r*> - •-i
ernment - activities r to
finance
power projects, .that cap be
fi-: :. rOrie of the ironies of the posi- ;
hanced by investorfowned electric. r-tiPn» of goverirment power a'dcompanies in the free market. Andy voeatee h their basic inconsistency ~

e-Aina fV,0 o1q.of-regulation, but, by some stroke
.tightly/to-a related public'rela-^5^
:
g tfee^^leptrjficaljon 0^ -0f m&gicy it would be better at
tions job, and this same sort ofv American farms, and its genera'operating a business, which it is
situation
exists
throughout our tion and transmission loans are not supposed to do.
': 7 '




Write for y

,

Relations/

people-. >The-technical ■^^ job^'.ofCdeveloping atomic-' power '-is' locked

in
new

•poximately, $35: billion,., and th6

:

/ '-^• public
advocate?
.Keiaiions^ seem

-One of the major problems we
face i5 to bring this distinction to

require

expenditures of ap-

Govemmeid Ownership- taxes lost to^ihe Federal QovernFor over 30 years,,..one ol-our.frpin.-.these added facilities
industry's.;.major problems has "—te-Xes which free- enterprise
been :. thP -continuing,/;effdrt
by tfower. .would pay
would be ap-

'

>

wouicf

-

in/divert! tax

atomic power'-to
in atomic

J

,

an

together:

provides

power

p£^enJ .rat^^of abo?t

our,

day/when

before; The, development of

never

struction^ In addition, our comwill contribute about $100
hilhon in_ t^eg.. to Federal, state,

groups,

parts of the gomntry .wiR^pfdyide';;^ /j;:-?.1 •'
a
good forum for discussion ? of: tnat perioct
in1 these problems.
*
r. 7'
'construction

electric : company:.' might
stand
alone is over. The time has come
when- We

national

ofP^tely.^MO billion ;f or .-new con-

coordinated under a single' banner. -ailct i-ocai? governments, r or all
is
also/ being
restudied. ?7The .^o^^^re^operated
and. fi"
regional public relations meetings -nanced power; suppliers to mainwe have just started to hold in

cooperative

made

of

the

industry organizations should " be

and

research

make the

-

of

The question of whether the three

.

through EEI and. other
industry groups- are invaluable to
our companies.
They help us act
together effectively in ways that
areas

activities and

relations

work

;

information,
in

"

public

-

kind, interchanges

Studies of this

activities

;

.

-P^es ^1llInbu.T?pen(!ing approxi"

companies are making for the

future.:

*

.

*

.

»

*

-

I*: v

♦'*

'*
y

•

*

<i

32

The Commercial and Financial Chronicle

(2784)

modified

somewhat

Japanese Economy

based

ideas

Western

The

of

and
age-old
The cult

family is everywhere
Anything else seems little
an
overlay, perhaps
passing experience. She

a

of practically all
possessions, but one
would be hard put to cite any
when we shall have to look much more sharply to our laurels
deep or lasting resentment. The
and our markets/' Mr. Bartlett recently visited that country with a
Japanese
are
not a race that
group of U. S. analysts. He does not minimize her problems even
readily reveals its emotions and
though he sums up the 17 years of post-World War II performance
it is quite possible that they are
as "little short of marvelous."
under
guarded selfcontrol now.
Whatever the long-range future
Historians, as time goes on, will that the collective heart of the may hold, the stability and coopsee tne many events since World
country had not been in its war. eration of Japan with the West
War II in an altogether different
It is about 17 years since our appear assured,
light than we do today. For the war with Japan ended. Her subThe obstacles that Japan faced
sequent recovery has been little when the war ended seemed al_
West, the
been

nearing

her

external

followed

and

installed, of new
acquired and of the
the
self-sufficiency

automation

by

in

are

plant

new

oi

equipment

made possible in many

quickly
de¬
veloping frustration,
bil¬
lions

days

short of marvellous. The volumes

conflict

exaltation

was

"the

concludes

and

prospects,

winning of the
great

and

so

on,

directions,
prodigious. War

are

naturally, fell upon her
lightly than upon us.
she had, also, to contend with

costs,

much

aid

But

hovering

inflation. One of the newest steel

another

of

complete
with
direct
oxygen
introduction
equipment
and
newer
than
anything we
possess,
was
proudly shown to
the analysts. It is astonishingly

the

For

war.

plants,

East, meaning
Russia

and

China
their

and

willing

and

efficient

George L. Bartlett

satellites, ht

been

nas

unprecedented
annexation

its

and

costs

almost

are

not

and

baptized in
major con-

yet

ag

£

They

tl

*

.

xi.

!

Recovery, in Japan, was both

£ast and s°uPd- In short order, it
becam® obviouus tha* she would
.

w°rk» to the best of her abilities,
and cooperate whole-heartedly in
reconstruction and it has paid oft
weB. Before many years had
Passed her people
having exPected

worst, no

doubt

of the great

saw also sOxue

startled the

that

western
de-

world. There has been some

New Industries

loose

^

September

inconquerable, physically as
psychologically. That she
adjusted herself so well and so
qUichiy to the conditions forced
Up0n her is a tribute of highest
degree to her people,

wejj

covery

period of

a

grab

In

JaPan ™as+ridlng 5 ^est of/e~

uuociievably low.

unwilling

v/

most

more

brink

the

on

shorn

has

and

economy

Thursday, June 14, 1962

than

more

partner adds up the debit and credit side of Japan's

Strset

.

and

race

evident.

only
Wall

.

on,

by,

traditions and loyalties.

By George L. Bartlett, Partner, Thomson & McKinnon,
New York City

;

cline from the tops, possibly fol-

chemical works that have lowing, insofar as Japans stocks
testants. There is a neutral world,
bean constructed since the end a^e ^nF.^ned' *be Price slumP 111
too, whicn takes aid
wherever of World War II, producing ma- me unitea btates.
it can get it.
Obviously, all this terials that had been scarcely^ or
Attempt to Regain Pre-War
fire.

is

These

the

are

situation

unstable

an

which

endure.

cannot

Opportunity came to a croup
uppcrumuy came to a group
U.

b.

of
oi

analysts to visit Japan last

April
April,

Wo

witnpsspd
witnessed

haH
naa

vve

miraculous

most

an
an

al
ai-

in

rebound

the

fvnm

o^Annmxr

new

not at all, known in 1941. Prepared foods, mainly frozen, are

Markets
_

■

,

.

.

industry
a^
?e+en« P'revi°usly
stated, has decided to "export and
Pract.icaiiy unknown two decades
„
means
essentially
aS° in Japan, which appears to it,
h
Itieans' essentially,

an°ther example of
nrartipa]iv

an

nnb-nown

+wo

-v.

x

taken

hold

strong

a

in

the

na^e taKen a strong noia in tne
urban

centers

the

of

nation.

So

that she wl11 attempt to.regain
-

h

many. :oi

as

markets

nre-war

ner

pre war

marKets

^
£u
^ inAvhich it lay m
1945. There had been a

_
.
. Japan's maior exports has dltl°ns Permit,
extend them; as
Japan smajor exports, "as .
^ .
s».
sincp the War
Siivlargely been displaced by nylon oroaaiy as possioie. since tne war

.

duplica^;,

reebvprv

in

tion

in

Tanan

ning little

more than a year later.
will remember that frequently asked question m those
years:
Who won this war, anyway? There rose to mind, also,

Many'

aphorism

an

Bismarck:

the

for

credited

to

power

being

developed

98 000
yo,uuu

Her
somp
some

at
at

Tokyo,

is

Wyoming,

miles
miiei>,

so
sq.

usabie.
onpd
onea

million,

figures
ngures

Thev
iney

also

space,

make
make

the

loss

investment
liivostment.

is

her
nei

immense
immense

virtual

s,

of

die.

Others

Tanon

ot

a

huge

the
tne

credit
creait

must

of

militnrv

military

war

natural
some

petroleum. It
she

of
ot

and
and

Disappearance

is

re-

coal,
said

nioovUr

export

or

has

which
rapidly

so

as

are

and'
the

from

of

wilT p'obVbly ^

change in color

regime

f

' China

in

.

Indonesia
1

+.

-

the

and

,

.

'the

breakup of Indochina,1.v

as

.

:

;

,

decided

x

to

■

.

.

?s j

Y?+u

•

*

*

u

to do a11 the refining at the home
serboard

Much

eviaence

construction

is

in

thp

world

in

canacitv

steel

..

Much

her

of

textile

.

in ine major-industrial centers
3Ild on many tourist routes. Much nas.
u

under

and

wav

machinery

dpstroved

or

.

.

.

Ta

a

renlaced

Deer\

with

new

^eKac^a ,w.im

ne^

equipment of the best types and

roau ouuaing io unaer way ana
h ^
"tore is to follow. Txie Olymp.cs maKes.
„

•

everywhere °f, tne. past was aestroyed or
industrial
centers
otherwise lost during the war; it

maior

road_buudinff

.

.

to-lav

me woria in steei capacity 19 jay,

practically

^c.doara- much construction is m

&ne nas

portant factor

become

im-

an

oecome an lm

in many

chemicals,

ot lyo^ wiu oe nem in Japan, and Arrangpmpnt has hPPn made with
JaPan must be readied for them. Arrangement nas oeen made witn
chould nrove a tin-ton host
American
and " European
com&ne snouia prove a up-top nost.
.
f
.
nroduction
of
In SOlT.e
d;ff„r
ce

respects, there

IS much
Jananes^ fi-

between

nandng and banktag
lar

do

more

important

From

ours.

Pames
I0t. X,ne
Production
01
pharmaceuticals and antibiotics.

methods" and There has been

aurs W be big~JaDane«e banks nlav
ours, ine Dig Japanese banks piay

what

role

than

could

be

a noteworthy lift
the standard of living in her

An

^

yvio.ri

^

^aAri cities and probably in her
hinterland
and
the
smaller

the great industrial empires that

islands, too. That could not be
or
Ieh hy the visiting
analysts because their stay was,

h

to° short and circumscribed. Un-

learned,
en
passant, the banks
have large interests in many of

to Live

i,oc

cleaily,

benefit

with
the result
that
Modernization of plants and
electricity is both plentiful and equipment has^ gone rapidly forcheaD
.
*
canital
cost
is ward. The steel industry of Japan
cneap, Dut m.e caP"aA. cost is
h (a
cubstantiallv pxnanded
heavy. Crude oil will be imported nas, peen suostantiaiiy expanaea
-'
nianned and she propably ranks fourth, in

a

dispute this.

Must Export

Japan,

some

of

nre-war

pre

lm.estone and

iron, no
her that

some

food
tooa

On
un

machine. She has few

no

that

of

actually pal-

include
inciuae

side

s-urc.

nn

un

reck-

that

put at 10 million. These

elementary
elementary

foreign
xoieign

it
it

is

million-

her major problems
nable
paoie.

about

nf
of

much
much

population
yo

new°ttetes?

possible

Hpr areai is now
ner area is now annrovi
approxi-

of

of

neutralism

water

To b^eih wirn, Japan lost Man10 o^gin with
japan lost Man
and Korea as a result of

that

imnort

import most of its
fuel and all of its petroleum. Na-

Prince

churia

the war
tne war.

th^^i
>Ja;pian must

golden bridges

"Build

vanquished."

mately

??d ?ther synthetics, even among

sprung

up

in

the

100

vears

seerA

aBsws&WBc Bssshswaxas
Matter probably f/ a
of late " lingerinS

This

lent

lo^'ifinUd.'nfLbsttntal pe^
centages of her sales in research.
Her optical goods, for
example,
are
reported to be of excellent

High Interest Rates
Japan

rZ- KSK rate^
sanitation

and

honcW

in

cf.'« it

Ihe war,

most

+

^

as it drew to a close,
punishing for Japan. In-

ternal havoc was tremendous. She
had
to
resort
to
replacing and

which

passed,

selves

with

the

tion and
money

has

an

her

industrious

managerial

yields.

much

more

concern
with

re-

than

ours
with their price/earnings concepts of values. It is, for

i"vestors' Paradise,

be if the nroceeds could

be

we

are

■>

x

•.

.

will

It probably

is true that
nor appraise our
Japanese opponents very well before that, either. It became clear




be

another

summer.

Politically,
Japan

seems

effort

to

published

in

a

special

pictor.al

special section will identify

firm with the important municipal field and the

active Chicago markets.

markets. Luckily for us, nature
has been bountiful with

There

it this

your

sharP!y to our laurels and our

it

be

Sept. 13-14,

representatives, who will take

Your advertisement in this

more
_

pleteness of the submission when

Municipal Bond Club of Chicago,

to

of the

following ouling

section.

nearing when

shall have to look much

t

the

photographs,

fringe benefits have asserted
themselves but they are not yet
entrenched in Japan as they are

f^orts ar? beingremoved.to have niggardly with Japan. Japan
made
this
restriction

did not know

of

will be covered by our

ours;

here. The days

proceedings of the Municipal Conference

I. B. A. to he held Sept. 11-12 and the

them- unions have been in touch with

the

freely exported. They cannot
and, at present, must be retained
in Japan for two years.
Strong

came.

The

Apparently, to her former standards. Her labor

savage blows of the atomic bombs
at Hiroshima and Nagasaki.
We

we

She

one.

complaints,

pS rltels IncludTng HsTng^s, whiX seS
definitely leads to high low to us but are high according

lationships of prices to dividends

or

culminating

"high

a

Japanese analysts

damaceerew^n1Intendth'S
grew in intensity as time
would
aamage

is

Certainly Japan will compete.
Moreover, she will go far in this
competition, for she is a virile na¬

country. The

investment

in the midst of vast changes

was

also

out hurt to Its calm and serenity.

us

ie

'

rescind

a

but

For further information contact Edwin L.

how-

mercial

thinking m terms of

35 k°u* work week. We

the
situation
in had
better advise
strongly in favor of think-again.
.

York

are; we

ourselves

&

Financial

Chronicle,

25

Beck, Com¬

Park Place, New

^

to
-

,

:

7, N. Y.

(REctor 2-9570)—(Area Code 212)

„

i

Volume

195

Number

6168

.

.

The Commercial and Financial Chronicle

.

(2785)

Last month's total

President.

was

.

FROM WASHINGTON

$878,000, against $1,921,000 in the
like 1961 month. -/
:|s

JOSEPH

BY

C.

POTTER

Guardian

the first

*

Mutual

that

ports

#

Fund,

May

at

Inc.

Ahead of the News

re¬
...

marking

31,

months of the fiscal

seven

BY

net assets were $15,896,931,
$19.40 a share. This compares
with assets of $14,887,130, or $21.57
year,

The
Historically,

Insecurity Analyst

White House has
been tenanted by men of diverse
talents: surveyor, rail-splitter,
hunter, publisher, retailer. And
now, in President Kenneuy, Amer¬
ican lore and legend is being
enriched by a stock market
analyst.

\

,

•

President, with consider- '
able facility, discusses the number
of splits in U. S. Steel, although;
with

not

the

who

has

ratios

managed

like

the Dow

devour

to

and

bare

to

come

the

balance

■

senior partFrontier & Co., was

in the N.

ner

at it

think

have

most financial

realized

for

overpriced

an

,

experts

time

some

market

that

could

not

hold up once investors recognized
that inflation was ended. Price-

Mr.

V

many

wish
least

Now,

in

does

fund

last

wants, but the

and

that

winter

leaders,

as

mutual

bankers,

other

Wall

financial

ex¬

Herbert R.

Anderson, President of
Distributors Group, writes:
"I

cannot

without

dation

concede

June

•

] As

for

that

now

;;

\

:

inflation

A

;

price-earnings

aside from

the

30

mere

•

ratios,

stocks in

the

Dow, the fantastic multiples

can

be traced to the Growth Stock

Nobody

vogue.

national

buying Inter¬

was

Business

Machines

and

Polaroid, to cite the daddies of
the breed, as inflation hedges. Nor
did

long line of utilities

a

growth

as

stocks

inflationary

because

spiral.

to

supposed

emerge

be

of

the

Utilities

major

are

sufferers

it

think

I

is

the

to

column

which, reasoned

7,

Funds

excellent."

is

of

that;; it

not the function of the funds

to bail out

on

April 30,

slumping stock
ket. Mr. Anderson, went on:
a

mar¬

$6,579,394 on April
$6,409,367
six months

earlier."
•

t

;

\

i*

c

;

*i

+

ivr

Loomis-Sayles

"w

Mutual

a

Fund

re-

with

any

This compares
of assets and

$16.52 a share on
beginning of the

Oct.

31,

1961,
fiscal

current

is

funds

tual

dominant

a

In

*.

■■

National

Securities

the

^Research

fiscal

year

on

net assets

if he

were

$511,595^844, com-

worried

was

factor.

or

they 'breaking'
'rescuing' the market? In fact,

they

doing neither, although

were

buying
being

a

fact that their

a

and selling tends toward
stabilizing factor as a

about

natural

the

function.

inflation, the favorites were
oils, paper companies inte¬

press. ■

4

to

Democratic

the

do this.

can

look at

a

fbere js

It

blj-0

m e r

i

c

to
THE

-

things at present

Lazard Fund, Inc.
44 Wall

no

publican

votes

tacks

the

on

Dividend Notice

strength,

bitter atsociety.

his

by

declared

Birch

John

the Fund

for

he

ac-

Elec¬

&

1962. The dividend

V.

•

*

■

#

*

*

of

result

their

normal

end

the

operations

[

of

«i i

and

first

April

d

H

it

it

Fund

had

total

net

to

all

the

and

their

assets

back

way

other
in

to

companies

the

"In

the

with

Life Fund

suc¬

DIVIDEND

Massachusetts

in

bear

a

market

of

earnings,
modest

liberal
multiples.

dividends

ticated

investors

and

other sophis¬

reaped

rich

re¬

wards

pursuing growth equities.
Apparently they were not without

faith and

confidence

ernment, vital
marketplace.

in

the

elements

Gov¬

in

the

It would be most unfortunate if
our

wide
the

analyst, who has a nation¬
audience, were to implant
that the price-earnings

idea

ratio is the secret of the business
of investing. Oldline

analysts

it only as one tool
After all, if all a

use

of their trade.

fellow

had

to

do was to pick stocks that are
selling at 10 times earnings or le>s,

the job could be done bv a child
in elementary school. Textile ty¬
coon

Leon

Lowenstein

used

'to

in

than 12%

1961

more

May

of

Broad

were

modest.

As
for
our
Washington-based
analyst, he did not explain away
the widespread nature of the col¬




991,429 for the first six months of
the fiscal year. This compares with
sales
of
$96,116,993 in the six
months to April 30, 1961. Net income amounted to $837,490, equal
to 99 cents a share, up from the
$413 451
in

the

equal to 49 cents

like

a

share,

period.

is

Publicans

^ie

Goldwater

Senator

paying

16

cents

*

Corp.

Investors
Fund reports that at the close of
the fiscal year on April 30 total
net assets were $32,318,741, equal

Washington Mutual

re¬

on April 30 net assets were
$34,807,166, compared to $43,593,353 at the end of the preceding

a

share,

at

the

end

of

be harmful while the members of
tlie alia are m position io Pe ana
is

there

the

evidence that

of

pienty

are>

y

.

trust

at

the

both in our foreign pol.„uu

,.

,

K'y and domestlc affairs
emphasis on spending,

Fund

dividend

of

share from net

per

income, payable

1962

to

holders

certificates of record

close,

of

business

June 7, 1962.
tytfa^ae/u^effo

Jfn&ulance

C/CobfiitalJjCffe
^cm/iany, Trustee

50 State Street, Boston 9,
•

,

8,

of

has

out that no matter how
intemperate are the statements of
the Birchites, they can't possibly

a

investment

June

pointed

VA

;

Mass.

Incorporated 1818

with their

The Democrats have the knack

stacking segments of Republi-

of

cgn

Sales

year

strengtb

s0

effectively

that

apologize

for

Republicans

the

This is, of course, the

them.

V

Democrats' purpose,
In my

opinion, Mr. Nixon would

oTS have a better chance of drawing
off conservative Democrats with

the

a

pre¬

conservative

ceding fiscal year.

campaign

than

he

.

Net asset value per share
was
$7, compared with $9.19 the
previous year.
year.

Sales
at

a

of

Sales

to

were

I

/

AilA

Affiliated

*.

Fund

high on May 31, ac¬
Donald
C.
Samuel,

of

were

value

Fund, Inc.

Energy

record

no-load

the

8,202 shares for

fund.

*

*

a

dol¬

An

for
of

*

down

shareholders

almost

34%

Fund

W.

Tempest,

its

a

Fund

seeking
possibilities

company

shareholders

growth

of

upon

investment dealers. Ask

your dealer
prospectus or mail this ad to

free

Established 1894
ONE

—

Atlanta

—

Chicago

—

Los Angeles

—

WALL

STREET,

Name_

San Francisco

Address.

Vice-

I

I

NEW YORK 5
cp

Lord, Abbett & Co.
New York

for

calvin bullock, ltd.

request

in

Executive

quality and income
possibilities. Sold only through registered

capital

reasonable current income.

Ptospectus

owning stocks selected

investment

for

of

were

May, com¬
pared with the prior month's total
and the average for the six months
to April
30, it was reported by
J.

investment

lohg-term

and

by

Industrial

A mutual fund

Common Stock Investment

of $154,197.

Financial

multiples

amounted to $130,-

ports that at the close of the fiscal

Redemptions

the

Street

Investment

Electronics

left

though

*

*

these
stocks.
Many of the
better-grade railroads likewise

al¬

about

Corp., general distributor of shares

lar

anathetic.

were

for the group.

for

analysts
here
too

1962

of

of

President

ly

the

and

company

according to Robert H. Brown, Jr.,

appraising his industry much too
cheaply. They would listen polite¬
enthusiasm

Funds

14% ahead of the like 1961 period,

President

their

in the first

months

five

cording

restrain

in May
higher than

Mutual

cf

Group

scold the Wall Street analysts for

and

jxepolu based

Sales of shares of the Broad Street

were

Mutual funds and

,

^

Vance, Sanders & Co., Inc. reports

uhe sP°nsorshiP of tha B(ist5)!1"

T^n-nrJa
Jf UIIClS

1 R6

their

for years, despite
respectable

own

did want to
this article."

on

The

ground.

companies, typi¬
by rich balance sheets, have

been

I

you

Life

Moreover, why should the Re-

men{?

total sales of the five funds under

oils and kindred

fied

event,

any

compliment

k

Massachusetts

*

grated
forest

;

Treasurer
-.

in increasing their
losing conservative
Republican votes.

of
United

eauM

$22 727 065

is payable

ceeded

year

30,

at

19,

L. T. Melly-

June 11, 1962.

attack any body of
when the democrats place
! Jp vtl!,p nn! members of the Americans for
waf«i ft Q7 anS L MaV l Democratic Action in high and
Zil $11.33.
A
; influential positions of governwas

International

aLeL

its

of
on

campaign

record

from net investment income.

tried t0 warm UP to then\in his

Presidential

of

close of business June

the

only
attacks, and

tronics Fund shares.

fit
?qRi
1961,

payable July 14, 1962,

stockholders

to
.

dividend of 8 cents

servkfng^S

fo?

accounts

cumulation of Television

At

a

share on the Capital Stock of

per

^e to openly court

Directors today

Board of

The

^e, not a^conservat ^ Ftepub-

conSai
s

St., New York 5, N. Y.

doubt that he lost Re_

a,

New

.

'

-

doubtful

Democratic

the

There is

Series, include:

Co. of A

n u m

for

<

!_

he™> but he ?£es ou °f
™a/t
Thompson ^ Ramo.
Wooldridge, J?
P"p., rtv fnrmlilv
Tennessee Gas Transmission,. IlliRePublicap Party . formally.
nois : Central,
Northern
Pacific,^He does this by
Texas Eastern Transmission,*
and^^ ^
S
i

u m

aptitude

an

Republican votes trying to break

^
A 1

.

putting his foot in his mouth.

danger that he will lose

a

There have been two

developed

have

3

vote

is

At

.

political experts

November.

From

total

April 30

with $536,552,329 a year
earlier Major new portfolio additions
to
its
two
largest funds,
Stock and Growth

of
in

win

&

its

with

state,

,

or tnree otner incidents wnen ne
alienated the press. He seems to

Mr. Nixon must keep 90% of
Republican vote and corral

say

Corp. reports that at the close of
the

this

Democratic edge,

.

Accordingly, there is a virtual in¬
sistence
on
'knowing: what the
funds did' in a period such as that

I do believe it is

expert"

of tne

opposed

as

His timing was bad.

rate, it did not set well with

England
Electric
System..
Eliminations
include:
Du - Pont,
the r'anks .of the Democrats.
despite
conclusive, Schering, Celotex, Columbian
He makes a mistake in trying
evidence to the contrary, people in Carbon and Flintkote;
to do this.
It is my view that
general and many financial
writers in particular seem to per¬ Rankers Trust Co
ha- been anthere is nothinS in the world that
sist in believing that the buying
rWnriian
for
Prnwth
Mr- Nixon can do that will cause
and selling in the market by mu¬
Programs'Inc
the
the Liberals to accePt him- He

be recalled that in the

''financial

votes

20%

year.

.

a

2,067,832

gives Mr. Blown 42%

Thf«
This

the

combined percentages
$103,658,000, equal to to Mr. Nixon's 31%.

per share.
$101,595,000

\

grace.

of

ports that at April 30 total assets

$16.01

-

attack seemed to come with poor

was topped by incumbent Governo.r Edmund G. Brown who got

of last week—were

nearly everyone

But Mr. Ninons vote

candidate.

1,732,009

to

"Actually,

from any such trend.
While it is most painful to quar¬
rel with a fellow-analyst, it must

1950s, when
who qualified as

chal-

33.4%.' The balance was f ac- carpetbaggers. It was undoubtedly
counted for by a third minor
political trip but Mr. NixonV

commen¬

Mutual

your

Reference

was

v

special note of

a

column.

even

rose

from

by today's issue

pass

for

perts realized any such thing. In¬
deed, many of these people do not
is ended.

assets

pared

indicate

not

as

Streeters

of the locked-in customers
they didn't have to wait at
until 1964 before'switching

analyst is entitled to

our

recently

that

accounts.

prospect."

think whatever he
record

analyst

our

share

a

from the $11 51 that prevailed
start of the period. Total

■

to

secret

no

conservative

its

in

the

at

,

understandably confused. Of
course, they have no choice but
to exercise patience. Still, it must
be

$11.70

amounted to

'

..'

_

Lacking clear guidelines from
Washington,
the
customers
are

be

inflation

other things, on
inflationary forces."
a Minority of

Trust

Income

among

One.

on

not

was

established
common
these
prices." He
is

at

Freeman is not

heavy

could

value at

30

Dow-Jones

23-to-l

thing

a

Nixon's

'* Mr.

A*

lenger, State Assemblyman Joseph . acterizing
President Kennedy's
semi-annual report puts net asset C.
Shell,
received
671,247
or visit to the state as an invasion by
up

earnings ratios which averaged

justified unless there

*

Lexington

T. Freeman, President
Loomis-Sayles Mutual Fund,
voices "strong confidence in well-

counting,

again last week. Said he:

"I

times,

defensive stocks nowadays?

"underlying

Kennedy,

10

12 times? Is there such

stocks

sheet

joust with the crystal ball.

Analyst

down to

selected,

the

blue-plate luncheon
that precedes the talking tycoon

hard

a

Haydock Fund, Inc. reports that at
the end of fiscal year on April 30

they'wait until

Do

comes

of

indigestible

Richard M. Nixon has

*

_

t

Maurice

man

a

closed?

eyes

» as

price-earnings

*

to draw off some liberals,
Predictions in political Washington at this time are against
Mr. Nixon winning. He seems to
have alienated considerable sup¬
port by his seemingly uncalled
for attack on the Birchites and
later to have lost ground by char-

the

that

*

will by making a liberal campaign

investment community demands of

accuracy

1

share, at October 31, 1961.
row

or

its analysts. And he discourses on

a

to travel to the Governorship of
was
indeed selective, as many a
California. A final compilation of
discriminating fund manager can net assets were $10,542,862, or the vote in the primary by the
attest.
:
;,
$28.13 a share. This compares with Associated Press shows that the
At the very least, he might have $10,678,393
of assets and $29.19 Republicans cast 1,977,896 votes,
told the clients what to do now.
per share at the end of the prewhich 1,287,599 or 64.9%. voted
Do they rush in now and buy with
ceding fiscal year.
for the former Vice-President.
,

The

CARLISLE BARGERON

or

lapse in equities, merely alluding
to an "over-priced market." The
long-time strength in the market

our

33

I

*tx4MU,,

..

uierM-Wv^-sw^ * *

w*wwW«

34

The Commercial and Financial Chronicle

(2786)

peak

Total Electric-Total Sell!
To Revive Industry's

_rv,

.

f.,

Continued irom
fifnirp-

nn

,vf

coi^f
frtoro
lor

there

"

in

saw

In

which

electric

over

Chart
own

that

this

eliminations
out

service.

.

There is

.

excising

service

and

sential,
much

plans

promote

than

non-es-

the

savings

needed

were

another thing to so

to

market

concept.
We
timing prospect
painful. Pioneering a new
market
like
space
heating involves a great deal of money for
research
and
selling
before
a
also

our

found

-

new

and

I

be

can

dwell

this

parts of the decision to push electrie space heating on an all-out
basis, This may not bother a company
which
is
experiencing
a
goodly rise in earnings, but it is
to

concern

slower

a

trie
0f

growing

on

which

the

ball

Electric

~

is

price the new
in long-term

are the comreally need to get

correct.

#

•

•

ervicing the Total Electric Home

ex•

England,

electric

the

and

load

data

the

A

great

load.
was

other

on

of

mass

developed

and

the
load
then

in

responsibility)

peak
what

better

than

assumptions

was

some-

load

factor

the

which

upon

our

original costing and rate making
based. Part of our findings

that

some

column

second

factor

in

of

terms

wide.

Our competition

V.
shows

the

home

or

of

di-

P°ses

some

pro-

business

homes.
load

35

the

heating will permit the setting Uually occurred in December,

rates

for

total

electric

both

are

profitable

service

and

competitive—especially in winter-

show

third column which

a

trates

load factor

in terms

ori^?inSl
thssG

im-

we

illusof the

impact of the diversified demand

CHART

three

tial. This service should be performed not only on a request or
basis. It

emergency

storage
rental

type/

,

we

For

install,

at

the

The

minimum.

equipment.
The sales and public relations '
values in such a program are obvious. The economics should be:
solvable.
Conceivably, a yearly
service contract would be the answerr From experience we know*

the customer likes electric utility
appliance service—both as to cost
and competence,

compact
7

references to

heaters.

Far from it. We regard with

,

own

efforts

as a case

er's

to

convenience

comfort,

and

bootstrap
....

its
.

sales,^ operation.-

:

H

MMML

1

\

OF AVERAGE

are

the

competition
but
selling fast enough. We are
beginning to accelerate this pro¬

SAIU

|

.

aren't

gram

through

a

term payment plan
the

dryer and

In

trial

the

its

special,

department,

electric

potential

and

the

L

;

,

'

PER CUSTOMER

•

indus¬

totally

seems

RESIDENTIAL

long-

covering both
installation.

commercial

RATI

GROWTH

customers

to

:
.;<•

-c'

x-..-'

-:f

v

••

V

ap¬

,

77 ; .7:;: '"'-

'• 7":-

;;:' :-:77;'7 '' -'

•

proach the residential. Here a lot
of our dollars have
gone into re¬

search—particularly
peak

heating

unpressurized

and

as

to

off-

cooling, using
as
a
storage

water

medium. On the basis of firsthand

experience,

we

I

that it is

suspect

CHART III

tfea

REVENUES FROM S*t£S TO

SERVICE and

cmm

M.TIMTI MSTMHS

PES?

CHART

PEICMT 8F ELECTRICI SftS

mrmnmmt

Hmott

Stomas

CHART IV

tmm &F

tmuom omoH mtm




«owHf«r utwmesi

SALES

DOLLAR

OF

EXPENSES

REVENUE

LOAO FACTORS'
H A-S£ »

£> K &><S«i<rA*i &u4 5

Ai *.4HG*

atas5f^i.v

■j*

'"C

:*

■y-

vf

y.tfWr hemn:

AttiMtt

till las

-WI.Ml.mp.PA

ifflWEm.

v

•'

-.

•

•.

.•.

*x+A ;

*

AT Titl fif
mmmm
khxmm

mm m
Wt 35 T0TAil¥
ait.

C»wft<»W j«>» £<&">

iff ;*:AA-$ SJM

an,

facing stiff competition and start-,
ing from scratch four years ago

TQTAl SALES,

to

history of

functioning of these heating devices is very basic to the custom-

mMwimw

cooking

continues
meet the competition.
Dryers

meeting

'

r

spect and envy the results of those;
great companies which have pio-f
neered in the totally electric approach. Instead we refer to our

CHART

'

-

re-

electric utility experiencing slow,
First, the reliable and' accurate growth in number of customers,

*

I

r

storage and

our;

experience have
not left the impression that we
think we have all- the answers,

the

heaters.

water

;(IElectric

both

;•

._y^7*'7,7;

and service

water

customer.

could also;he given assistance and
advice as to sources of service
with respect to his other electrical

monthly

a

own

these vlarge-tank
Our dealers sell

^

pro-■

7e?u' wa^e^ heaters and ranges

space

water-heated installations' of
..

should

'

vide for periodic vists to inspect,1
adjust and perform preventive
maintenance on heating equip-

heating is only
part of the totally electric com¬
mitment. Through a ; rental plan
nwe .have
doubled, our -rate of

7

loads "

heat

(space heating, water heating and
cooking) in the aggregate produce
electrical'revenue roughly three

7

competitively.

reve—

cwt

establishment I hope that the
special service own company's

very

shows

what

high ratio of annual electric

,
jn suggesting the "Total Elec-*
However, it is our growing con- :trie—Total Sell"-approach to re- i
viction that the totally electric viving our industry's growth rate,

were

the

same might be said
dryer) involve a relatively

.

sales promotion.
;
The question of whether appli?nce service should be included
in the electric bill, or billed separ-:
ately, is of secondary importance.^
The prime question is how far
should the utility go in servicing
electrical devices.It is easy to
take. the position that appliance
service is not our responsibility
at aH> an^ rt is probably true that
the bulk of the servicing can be
better performed by non-utility
agencies.
.

depth by computer
methods. In a nutshell, we were
deeply gratified to learn that the
load factor for these homes, both
as to total load and space heating
load
(taken in terms of system
analyzed

central living? necessities

There is a fourth area in the
achievement of a totally competitive sales policy which is, at this times the revenue derived from?
juncture, more in the nature of the score or more of other elecan unsolved problem than a clear- trical devices in the home.
cut decision to be made. I refer to
It is our view that these facthe servicing of the electric cuS- tors, • taken in conjunction with 7
tomers' utilization equipment.
our
competition's policies,
sug-'
The variations in electric utiK gest that service tailored to the"'
ity practice in this regard are totally electric customer is essenvery

heat-

space

the

to
Third

company's system peak oc— vides a great deal of "free" servcurred in December, ■< 1960. For- 4 ice. That is, the cost is included
tunately, during both months we in their rates. You will recall that
had 70 meters of the continuous Chart IV showed that the gas
demand-recording type installed companies in my particular state
in
35
typical
totally
electrie spend almost as much in this area
homes—with one meter in each
of service as they do on pure
on

are

Second, all three of these heat

nue

m

Our

<pbe

impression

my

which

company—and these
panies

result

close

so

Problems.
It is apparent that a
homeowner using electricity for
bis space heating, his water heatof
the
halfheartedness
in
the
pact on our system peak would ing and his cooking is m a somepromotion of the totally electric have been had that system peak what different relationship to his
home
or
business
establishment actually occurred in January of electric supplier and the equipstems
from
lingering doubts as 1961 during the coldest week of
supplier than is the case
to
whether
the
relatively
low record in our area. Because our with regard to other home uses
load factor associated with elecsystem peak for that winter ac- of electricity—for several reasons:
It

cial timing is one of the toughest

of

to

we

this third basis,

.7
•

tempera-

New

irretrievable

hard to

finan-

because

as

in

record

danger

harvested.

on

often

coldest

losses.
This are pictured in Chart
is, of course, inherent in
The
first
coiumn
the
regulated
enterprise where. load factor in terms
mistakes in rate making are very
verSified
loading
of

the

quite

crop

third decision

a new product. Such
early losses are not unusual in
competitive business life. It is

sales

our

every

found

we

less

from

a

the

total

promotion of

_

After

of

tures

ing

troubling than the first two
—the setting of electric rates for
the totally electric home and the
totally electric business establishment.
It
is
one
thing to face
several
years
of losses in the

pro-

■

__

return.

more

New Market

a

market

Setting Profitable and
Competitive Rates

wipe

worthwhile

for

During January of 1961

perienced

on

_

service.

^

Thev

were

system load factor of about

our

60%.

thG

of

peak

We

of

load involved in totally electric

home

many

not

immediate

0f

grams.

Pioneering

concept, and the commitment

development without the prospect

found

in

did

but

—

really

any

We

resulted

test

organization to the
sums

rest

the

on

winter.

Thursday, June 14, 1962

loads (and the

to

,

poInt

substantial

0f

one:

this

entire

tha

of

new

case,

total-electric

market.

new

the

homes

the

.

factor,

course,

electric-heating

from

factor

test
of

.

greatly heartened to find the load

should

of

was,

the

isolating

we

as

error

the

hour

this

We have been at considerable
pains and expense to prove out
this matter. Now that we have-G
a substantial bank of experience
to draw on we have been able !
faces> to develop concrete results for
our particular area of the country,

totaily competitive sales
namely
the commitment

a

effold.

we

III.

obvious

an

in

load

_,,

management

great

to

.

the first move
to put our
existing
sales - service
policies
under the microscope — to judge
every
outlay
on
the
basis
of
whether it was justified as contributing
to
the
furnishing of
our

was

Growth

i have dwelt
on
two
of the
major decisions
which have to be made in launchy

in

ships shown in this Chart IV and
the relative improvement in gas
revenues

i

that

this

jn

degree,
beelectric-gas relation-

the

.i

decision

guess

connection,L

some

undeterminable
tween

the

hazard

is

of

ni^fiatc of 9^
J tnHav
,,+fil+ioo omy.
nniv
utilities

eiectnc

cautiously

that

the

Tv'mn-

rhart

r<nmnari«nn

o

™,m!

tne

I

fTT

■

more

scale

national

a

ifciif

*ir£a

rj

of

was

into

getting

soon

as

The

have.

profitable to build heat- and
cold-storage tankage than to increase
generation,
transmission
and distribution investment. But
that's another story. I just want
to indicate that:research dollars
are a sizable part of the economic

22

vaqe

tifvlf

,

,

1

t

from

company
marKet

.

that it

know

I

areas.

such doubts that deterred my own

.

'

V

•

Volume 195

Number 6168.... The Commercial and Financial Chronicle

We're not out of the woods, but
our

average

use

creasing
our

at

7%

a

in¬

rate, of in¬

crease

think

an

CORNER

.would not. exceed 4%. We

average

able

8%
and

increase

BY

JOHN

DUTTON

in

maintainable

for

a

number of years. Given a pick-up
in home building, the total of resi¬
dential

Convention

reasonably attain¬

is

use

—

9%

to

35

Without

rate.

programs this

new

At Analysts

SECURITY SALESMAN'S

residential

per

customer in kilowatt-hours is

(2787)

would

revenues

Sales Psychology for "Bear Markets"

increase

importantly.

Commercial poten- It is. not enough to. understand abilities for growth in the future
appear to be in the the importance of properly advis- "are more promising."
;
v
: ;
league/with industrial sales Irig individual security buyers on ■/./study this statement carefully,
moving at. a lower but improving -their purchases and sales. $e-. pe0nle wh°'are scared will not
would

tial

.

same

rate.l■

'

:

:'

^^•'^:bes^^teltwaiA Ao::'i6tf .tightA
help his

cannot

Associations and
In

Advertising

-

•:

conclusion, I should mention

that my remarks have centered on

what the electric utility might do.
This is not to imply that the man-

ufacturerg and
tions do

not

to

trade assOcia-

our

central part
just think they have
been more nearly on target than
the individual companies. Espe¬
cially do we feel that EEI's Live
Better Electrically Program is on
the bullseye, both as to policies
and advertising effectiveness. We
have depended heavily for our
local advertising on the testimoa

patients unless
they are willing to accept his
diagnosis and take the pills,
,

fundamentals

system
ties

feel, be

we

A

they

of

individual

the

that have
sults

electric

applied

market.

to

of

another

or

methods

"new

issues"

during

the

indications

of

whose

past

based

I

the

than

told

someone

stock

a

_

sible

fr'om /the / whole
spectrum Of our industry's efforts
can

be fabricated

;

ual

electric

utility

mto

.

individ-

bv the

an

her

upon

that

opti-

a

electronic

New
other

you

stock

in

tlit had depreciated
Sh?also]heldSeveral other

apd

Salesman Must

Good

or

whose

.'

_.

Psychologist

'

comparative
main

a

values

of

a

headed, "An Investment Lesson."

market.

present

She

electronic

stock

is well

Jersey,

Institute,
Atlantic
June 6, 1962. -

City*

for suggestions for the investment

New

of

Join H. A. Riecke >

/

PHILADELPHIA, Pa. — H. A.
Riecke, & Co., Incorporated, 1620
Chestnut Street, members of the

is

associated

now

Philadelphia office

registered

representative and Irwin M. Bernstein as a registered representative

their

in

50

York office.

The

firm

Richard

A.

associated
*—J

tered

;

also

them

—

representative

burg, Pa.

as

in

The

become

thought can be used
by security salesmen in reassuring

regis-

clients, or in going to them and

announced

Kressler has

with

they'll come back." This is good
New morale advertising during "bear
markets."

Broadway,

:

a

that

Bloom-

v

t

saying,

Two With Sarasin
(Special to The; Financial Chronicle)

"All right, the climate has

it;

Now
Let

we

us

securities that

should

weed

with R. L. Sarasin & Co.,
Saratoga Road. Both were for¬
merly with Bancroft Securities Co.

out

picks up
end of the year, we
may take a loss on the first 300
hundred bought several years ago,
charge it against profit On the two1
stocks she sold, and keep the 300
bought at today's depressed levels.
Then later in the year when markets have stabilized more she can
reinvest
the
proceeds received

On Which

the

CONSECUTIVE CASH DIVIDENDS
Have Been Paid From

5 to 178 Years

from the sale of the 300 shares of

electronic stock she sold in

other

48

BOOKLET

PAGE

—

good securities that will maintain
over-all
diversification,
quality, of the list.
Bear

markets

until

can

become

and
op-

salesmen. This does not mean that
we

should

ever

let

our

own

Included
been

do, we will have to be

we

that should

be

sold.

Let

them, ;ttien let

sonde'

us

some

are

number

of

years

dividends

consecutive

have

paid, cash dividends paid during the twelve months to

December 31, 1961, percentage

tion, also

markets.

listed

and

counter

yield, and December 31 quota¬

analysis of the difference between the over-the-

an

COST OF THESE BOOKLETS
1

50 cents each

to 24_

25 to 199

30 cents each

200 up

20 cents each

On orders of 100 or more, a
cover

three-line imprint on the front

is included without extra cost.

Wm. B. Dana Co., Publishers
Commercial
25

Si

Financial

Park Place* New York

/

Chronicle

7, N. Y.

self-

guide

those who believe

thing (if

enter

our

order for

Counter Common Stocks" and

booklets

on

"Over-the-

accompanying dividend tables.

would

we

,

we

thought that
.

,

.

.

course
,

Address

;

;

—

—

......

of action was for their best in-

customers

safety, income, and possi-

Please

rather tell them not to buy some¬

start

where

motivating

are

take2- terest). You. can do

with

in

customers. The best customers

ness, even

us

us

our

profits

anew,

sound

interest

those

be weak, lacking in 'comeback possibilities' and

are now




recog¬

may

AUBURN; Mass.:—George P. Car¬ losses, and possibly
ver, Jr., and Joseph F.: Driscoll
to offset
11

Common Stocks

same

changed.
nize

.

OVER-THE-COUNTER

If the electronic stock

before

income exceeds $8,000. Moral: If gressman.
your securities are well selected,
Someday we may have a better
when things looks the worst . . . enlightened investment public, but

their

with

as a

offices

managed, earnings

who have a sense of humor (and
some losses) and I signed them
with red ink, and a P. S. "In this
present market I am using red ink
to sign all checks, letters to customers, and memos to my Con-

Electric

1925, a well
publication asked

known financial

address by Mr. Cadwell before the
Convention of the Edison

from

1962 EDITION

because At

and $51,000 in common stocks.The
portfolio has not been changed,
We all know what has happened
New York Stock Exchange and>in the world since, and yet . . .
other : leading - exchanges,
an- the stocks are still worth over
nounce that Harvey P. Besterman
$300,000 and the average annual

It went on—"Back in

Annual

business

bought 300 shares more of

$100,000 for a widow with two
children, to produce an income of
$4,000 a year. Forty-nine thousand dollars were placed in bonds

* An

.

J.

now pro¬

the

recent advertisement of
£ Investoent FirA that wa^

sav
have the merchandise- -let's

Grayson Opens

GABRIEL, Calif. —Herman
Grayson is engaging in a secu-

238-C South Mission,

—

competition. Again I

H. J.
SAN

"future prospects,

knowledge a d uridersta ding
refer to

an-

return'based

research-activity is promising some excellent new products
f°r 1963 that may greatly enhance

is

lapl_

a

Vail Avenue.

and

^«ve.

notJ are up,

motivation

aeeravated hv

'to levels

were

low income

their

pany

the

Exchange

exchanges,

nut street> as a registered repre- rities

looks like it is oversold, the com-

tr\

would find ourselves

it!

30th

Stock

leading

securities

a

business from offices at 137 South

nounced that Alfred R. Hunter,
Jr« is now associated with their
Philadelphia office, 1530 Chest-

portunities for you to help your
customers but you must help them
understand that the world hasn't
come to an end—just yet!
They
need encouragement, facts, advice,
suggestions, and sometimes a bit
of humor. The other day I sent
letters to several old customers

sell

York

E.

about double their cost.

were

and she

crowd

by 1970 in a dynamic trend rather
than a degenerative trend vis-a—we

an

Fleming is conducting

PHILADELPHIA,
Pa. —W.
Hutton
& Co., members
of

hundred

three

MONTEBELLO, Calif.—James A.

With W. E. Hutton

account

upon

sorpeone>

Dealing With people who do

dustry,

the
industrywide
effect
could be spectacular. I firmly be- 5

our

handled

than

(Special to The Financial Chronicle)

of

very sen¬
not wish

does

had

I

of

viding

k^bw how to analyze, a balance
sheet an earnings * reoort an in-

years,

vis

lady is

also

Both these issues

•

we

do

shares

psychology, it is therefore
Obviously, its important
that ; the
investment
development will require rcuichsalesman knows how to keep these
time and money
a strong dedipeople from selling securities that
cation by top management and all
are
temporarily oversold in pedepartments to its success. But if rj0ds of
panic markets, emotional
this kmd of total effort were apselling, and distressed and forced
plied by the individual electric - liquidation. Here are a few sugcompanies
over- the- next
few gestions'
v
-A

lieve that

I

or

sales program.

mum

she

but

have

I

to take losses any more

"hot."

was

Security

Be

a

plaris

account

since 1951. This

the
A

totally

suggest that

reevaluation

a

s°ld the two stocks with profits,

seg¬

one

is

investor's entire portfolio. The
other day I spoke with a client

sto^ks t&t 'l'd Zwd

else

careful selection of the most suecessfuh

the

here

needed

produced important re¬

when

ment '

.

a

stocKs

Needed

client says

a

tion

company.

sales and service

first: fundamentals

cared

ceived

Spotted throughout our industry
are examples of outstandingly suecessful

for

....

preliminary
prospectuses - that
withheld
important data as to
offering price, etc?. Also, in many
cases,
indications
were
freely
granted without revealing any¬
thing more in the way of informa-

But the big bootstrap operation
still be carried" out at the

to discuss their company with E. Wallace Sleeth, Eaton & How¬
ard, Inc. Research Analyst.

Prior to joining W. E. Hutton
With Calif. Investors
& Co., Mr. Hunter was associated
"I want to
sit tight," ask him, "If someone LOS ANGELES, Calif. — Harold with the commercial banking de¬
Riff has been added to the staff
were to recommend that you buy
partment of the Fidelity-Phila¬
these securities that you do not of California Investors, 3544 Olym- delphia Trust Company as an As¬
wish to sell today, would you buy Pic Boulevard, members
of the sistant Treasurer.
them?" Of course, he wouldn't. He Pacific Coast Stock Exchange. Mr.
only wishes he never had bought Riff was formerly with Shearson.
J. A. Fleming Opens
them in the first place. What is Hammill & Co.

When

buying, and in the main
less. Otherwise, how
could security salesmen have re¬

budget would,

opportunity

an

recovery.

Reevaluation

■

were

they

must

level

a

™1 years of small knowstrugand what
gling ventures, did not

constructive.

very

0f

most
common

in¬

substantial

them, of

rob

securi¬

The peopie who have speculated

tising program of our chief com¬
petitor—just as our local efforts
are falling short of our competi¬
in the LBE

Billions

security a good
value, what securities are good
for them, what securities should
be avoided, and the importance Of
"timing."

exc^ededT/t^ "nXWve?efforts.

the

0f what makes

is

left, Executive Vice-President of Dow Chemical.
Company, and Carl A. Gerstacker, Hoard Chairman, center, take
time out from a busy schedule of hosting visiting analysts attend¬
ing the recent National Security Analysts Convention in Detroit

teriorate further in value but also

economic

our

matter.

invested in

Herbert D. Doan,

by

derstand

ing dovetails almost automatically with LBE copy, and we derive
great benefit from the
national
advertising.
The only

crease

are

:

millions of people who
should know something about in¬
vestment
and
certainly
about
speculation (if. they are going to
indulge in it) and they don't un-

lived in totally electric homes. We
find that this type of adVertis-

tor's

of

that

for

of. dollars

nials of local customers who have

trouble with the LBE prograin

tell you

what they

don't, understand;.Is.that they are
clouding their thinking by an
emotional bloqk. When they hold
v
Individual speculators and in- securities that are ho longer in
vestors are very emotional. Many favor, and that have a mediocre
people who buy and sell securities outlook, ; they
are ■ not
"sitting
know
very, little
about market tight." They are holding weak se¬
trends, industry variables, or the curities that may not -only de¬

I

play.

have

tvill

'curity -salesmanship siso

:

values; main

plenty of busi-

Firm Name

————

in bear markets, if your;
under stand

concern

that

your

is not your commis-

sions, but their welfare.

-

By

Date

————

at

The Commercial and Financial

Chronicle

.,,

Thursday, June 14, 1962

(2788)

36

is it truly

Confidence Is a

Big Business and Big Government private production

to get work done, and
in the national interest?

cient way

And

.•

now

benefits every-*
e-

thing ancLeveryone <It^s' ou

there is one other area

>■ <

I believe, in which the govern- mduced :by^every. feasmle^^
d ,
merit-business relationshiD would to flow as strongly as possible
course
ment-business relationship would
as freely as possible.:*
vresources and similar government
be improved by a policy reconWhat Can Business Do?
«.
activities. But is not. some of it sideration—-and that concerns the
I happen
due to government's willingness size of business units.
Now
what
can > business ' do?. ;
to be among those who believe
First of all, let me say that honest
to yield to the temptation to supvO-c
+a frv fn shnw
ply "yardsticks" or'to try to show that it is inevitable that our coun- disagreement^ regarding a policy
the power industry, how well the try will grow, that-we, will have or* action. on theipart'oTeithec,* y
i
•
government can op
government can operate a utility larger_government than we now government or business is no cause > •
system, taxes or no taxes? Or is have, larger educational ,ii^*y--r.-^.rbitfecis^or,t|ie.drahWill^Apart -ci
Well

part of it results of
dpvplnnmpnt nf water
from development of water
a

fmm

..

Rebuilding

In Need of

■

,

about doubled since then.
Taxes
24
fifiOZ,
onrl
on^business have risen 68%, and
incentives m one
rietors> inc0me is up 70%.,
area and;a\the ^^(time,m o
^'
.
corporate profits have • re-,
in other But
corporate profits have reset this by added taxes m other
mained virtually unchanged.. Had

Continued from page

i

:

i

business

give
-.

t

will

certainly

areas

Pr^"ce ^
increased

capital investment.

;

^

and needed now

What is needed

proposed,_ but

is not what is being

as

'*/*■

thev were.

larger-, housing projects^.

:

-

'A recent

.business, think, on. occasion
how: difficult it is to get along
wjth government .and all its diyiT

*^5

headline reads "Crack-

has already

eral feasible measures

given.

-

i/:
,

and national growth there.
true and we can have

covery

way to erect" a and'of efficiency, and in a very
bridge of confidence between gov- real sense, to
V*"
question of freeernment
efnment and the utility industry aom-V
which has never arrived too late
Senator Hubert H. Humphrey in

^™^d^VM^dollarTworth is"not'a'very"gSod

of obsolete plant and
of Obsolete plant and equipment?
The
Administration itself has And if thig eqUipment could have
has
this equipment
frequently referred to the more been replaced more rapidly with
adequate
depreciation rates in modern efficient facilities, would
European countries and pointed &Q many of our industrial products
to their depreciation laws as one
be aj. a competitive disadvantage—
of the major reasons for the reag
they are today_in the great

.i/'-'ij/
ltself

markets abroad? And

and gr0wing

That is all

a

with too little.

could

we

for

here

not well utilize as a new

says:

to

stay

that

this

in

bigness

expanding

products were more corn- yardstick—a comparison of tax- economy. Depending on the levels
growth and fuller em- petitive, would our balance of consuming versus tax-producing of research and technology, the
ployment in this country if we paym.ents problems—and the re- expenditures? The figures are all optimum size for a corporation in
[o
will do the same,
"
ooon, "rrt can
we
sujtant drain on our gold reserves available, and even those who are a given industry may range from
more than make up any
possible —be as WOrrisome as they are? most interested in increasing the small to .middle-sized to very
loss of tax revenues through imAnd wjth more goods going into tax-consuming type of expendi- large."
provement and modernization of export, would unemployment con- ture should be .interested- in a
And further on he says:
i
tinue obdurately at its disconcert- yardstick of this kind and I am
Our
growing
U. S. market,
creases in earnings from enlarged
ing levels?
V,
sure all other citizens would be with the
vigorous pressure of new
exports and through the national
Corporate profits and business also.
\ \
'/V;./ ideas arising from research techgrowth that will follow—all of
confidence walk hand in hand, or
One measurement would be to
nology, and a steady encouragewhich will develop additional tax¬
neither move successfully. If the compare the relationship between.ment to small
businesses over" the
able income, corporate and per¬
government truly understands the tax-consuming expenditures and past several decades, has given us
sonal.
extent to which depressed profit disposable
personal income.
In the benefits of very large business
This action alone would be a
levels are acting as a deterrent to 1929, tax-consuming expenditures
enterprises, without a fatal devel¬
clear and concrete manifestation
+u
•
•
+
+-~
>
national growth and business con- were $9 billion, or about 10% of opment of monopolistic behavior.
^ these

.

w

„

.

a

,

P^fit

e®caPe from

business'

improving

-

considerable contribution to busi¬

tally necessary today.

.

disposable personal income. By I foresee a growing partnership
tax-consuming expenditures of government and business man¬
squeeze r0se to $109 billion, or almost 30% agement, aeaicaiea to tne xasK of
agement, dedicated to the task 01

'
Decries
_

confidence is

possible.

spending Wased atoost..
'"'three times as fast as did private
Competition income betWeen 1929 and 1961.
....

«

.

.

ment

•

•

Government

desirable in

tion's

Then

and Price Controls

stemming

employment

-and therefore
ineieiure

-ctiiu

cost

our

our

na¬

increases

nation's aouabil-

iiauuns

lty to compete—that government
not

must

involve

onlv
only

establish
establish

itself

th^ir
their

in

hut
but

them
them

pnfnrppenforce-

that

nesses

well

being

are

performed

this

In

whirh

POmes

fense and for national safety.

rpwnf

in

vmm

when the
prestige of government is placed
behind a guide line and this group
Happens
happens

that refuses to observe it^

not^

this is
in

the

u%iPkely

an

world

it

as

And

happening

is.

the

Must

government then act, and how will
it act?

Will those suggested

lines

into

grow

employers—or

them?

How

well,
of
distinguish

only

will

guide
strong

web

a

enough to hold employees
as

we

as

some

between the binding strands
of
guide lines, if they are effective,
and actual wage and price con-

trols which

no

one

to want?

seems

In other

words, are we attempting
to remedy too great an increase
in employment costs by methods
that may lead into the strait jacket
of direct wage and price controls?
There may be some
V

for

"1/4

nriT

linAn

A

guide

mutual
if

they

trols

lines

process
are

how

n

justification

A

1-i

w

r\£

-v»4-

Ann

of

part

as

a

of

education,

our

but

preludes to direct conthey be justified?

can

Could not the educational process be advanced without inviting

controls, and would not the results
for both labor and employers be
consonant

more

If this be true in

part, who's to i

blame and is a share of the blame •

OWn?

our

Do

tremendous

ILIf™ J t®?oi

with

system of getting

the

fruitful

work done

almost

all

pressures

*

government's, necessities? .Can we \mil-/

in business visualize the 8V2

is

related

'big

busi-

government. We
The bigger questo

the

future

of

do

have

we

of

government

the

some

gigantic

mUst daily

take

affairs

and

understanding

task

undertake?

government :
-

.

na-

1 mentioned earlier some of the

>

policy. Deferring for today
the confidence-detracting propos-

problems,
both 7 domestic
and foreign, that our nation faces

*

fragmentize business, when
businessmen have
doubts about

today.

als to

But

grave

them

-

But

as

our

do we always view
problems? Or do we,

Washington being helpful in stim- perhaps, heave

thp

of

big

have both.

have

the

appreciate

we

that gov- '
ernment is under?
Do we expect ;
too much without knowledge of
-

a

sigh of relief at

>

ulating the growth of business, as the thought that Washington must,

;

context, the example which comes nonHiturooiiac cttsno fnr nnnripfonco ;™ earlier, "
increase in total government ex- J indicated
rpnriiTv to minH is t.be elecI
most readily to mind is the elec- penditureshas gone for nondefense
L
han^le them^ ^d ^aen
utilitv industry
composed of
and
amone1 memthe basic doubts relates to how ment comes forth with some pro™
broadly and to what degree gov- posed solution that we feel is not
^nvestw-own^d com- bers of Coneress there sfemno broadly and to what de«ree gov"
nan:p„y S'
S S th! ernment itself will grow in areas in the public interest, do we p
*
•
a
^ ill if thpCp !v where private businesses could do merely oppose and denounce it? *.
Since W^orld AVar II, the indus— necessity for many of these ex— the job, certainly as well and Or are we familiar enough with ;•
try has tripled its capacity to serve penditures.
probably more economically.
the problem, from a broad na-v
.

pvpn

nurnnsps

What

ment?

or

establish

tional

perfectly Suming expenditures went for de-

tax-paying

by

enterprises?

nroductive

and

nesses

tion

not

could

too,

wi'u

now

another
great restorative to business con- Questions Increased Non-Defense
Then, on the wage front, are
fidence be found in a governmen- :
Federal Spending
guide lines for labor and business
tal decision to keep out of busiof course, much of the tax-conFears Wage

so

street and that, its effort
good relations with
business is all talk and no action. '
one_way

to

care

wh™tPrq

for

suspicion that governthinks good relations are a :

lion civilians who-attempt to

that

ness

—

prevalent

attitude
So

.

Administration

the

of

ment

j

toward
ard

.

an

.

rt!cc ?n nJS pmlctrfiP^vifidence> encouragment to the
wLia+iJ?Tn?in ?£?ifbusiness community in its effort
far

and respect .?<
easy task ,i
either side sometimes, regard-:
Not

sides.

Next, let me say that some of
us in business are inclined to mut- J
ter that, yes, cooperation is nec-f
essary, but we should not have to
do all the cooperating There is a

„WWVS7

«

>

people are only human.. But it is
a task that in the interest of the <
.country is of first importance.
;

c*

Tt

every

responsibility

both

less

is

economic

c

,

*£''

•»

must be
made—to
accommodation which is

an

volves
on

believe

rnJit

mutually beneficial-and which in- '.

7^

I

ATI

r

find

recent article in Look Magazine,

"Yet

xriour

;

bigness,

Proposes a New Yardstick

rvntr«

effort

that

ment

after referring to the problems of

With all this talk of yardsticks,

iirAv+Vi

r4-

made—and continuously

.

or

:

sions and regulating agencies. For
t*rV»n+

been

know/that; V:

separate. campsv,-I-

. t

highways and nearly everything
else, including larger jobs to do.
Also I believe that in business we

they would have tion by government in the power
$40 billion-last field just the plain desire of some
instead of about $23 billion people to see it done that way? '
than

more

,,

,

economy,

been

,

,

,

other parts a part of this increased participa- tions,

they kept pace with

additional cash flow-for

r»r

•

.,

Tt

.xr

its customers; and it now has more

Some remarkably accurate cornIt would help business confi- tional point of view, to propose a ,
ments can be made about tax-con- dence to know that a big govern¬ better solution, that . is really a *
:
suming expenditures. They fre- ment does not propose to get big¬ feasible solution?
In short, are we doing every¬
quently come from deficits which, ger by undertaking the work of
when "monetized," contribute one private industry; and one of the thing we can to increase the gov- \
of the oldest causes of inflation— healthier things that could happen ernment's confidence in business? >'
Solutions to questions like these
the chasing of. too much money so far as job-producing,, tax-proafter too few goods. On the other ducing investment is concerned are never easy. We in business
would be to have a clear declaraare prone to criticize government, t
hand, tax-producing expenditures
The industry is currently pro- are those which create goods and tion followed by clear action on but to repeat, in my view action viding every person who comes services in abundance—and these this important national question by both in a cooperative spirit is
to work in its organizations with expenditures are noninflationary —whether in the public utility the only feasible, answer.
Busiabout $135,000 worth of. tools on because they are matched, by an. field' or elsewhere/"
•
• think
of.
the average.
And the taxpayers equivalent provision of goods to,
those in government as Machiavellian overlords whose prime pur- ;
did not finance the tools and fa- be sold.
Government and Research

capability than the next six nations, including Russia, combined,
With only 6% of the world population in the United States, the
industry has provided that 6%
with 33% of the worlds electric,
power capability, a remarkable
achievement.
,

^

?

cilities.

On

the

contrary,

utility

A second result is obvious. When

companies
have invested more
Z
private capital than any other inaustry in recent years—over $3.2
billion of it in 1961-—in new plants,

A declaration of this kind would

tax-consuming .expenditures get also be most welcome to business
iL
1
*
1.
_"1
1
"I
T
too big they have a tendency to in research and development. In
strangle their opposite number, this case, a statement that governthe tax-producing expenditures, ment does not intend to compete
not only adding to the nation's The latter must, by and large, with industry in fields that are
productive resources^ but its rev- •come*; from- prodtrctive'operaticms. essentially "crfprrvate concern"
1.

««

enue
*

sources as

In

area

well.

forces,
companies are

125

over

i.

1

A

■

pose

life

in

case,

is

to

push

business,

I do not think this is the

around.

—

_

nor

do I think that we can

let ourselves fall into the critical

state of mind that that kind of
thinking generates.
•'* Onthe Pthef"hand,;it will "'do no4'',

are would be reassuring. - Admittedly;- good for anyone to think in termsdrained off to supply taxes for-government research forJdefense*of business * as a pawn to
be the tax-consuming expenditures and for space purposes is vital, shunted hither and yon at executhere is too little profit left to There may--also be some other tive or legislative whim. Business,

When too much of the profits

\

the- financially, hazardous
of providing
energy
from

atomic

.

separate

in which government re- after all, is nothing but millions
search could be justified on the^ and millions of penplef Organized
risking over $700 million in that turn reduces, the*competitive abibwgrounds of- broad intere^: and use- inr relatively smaH- ;g:i? citrp s/1 de¬
work•
ity of an industry or-a nation;-It-fulness to the business community/'achieve1 betted production/7"And-Another source of great concern,,.
At the same time, tq ,help fi-* likewise reduces1 the rate of na-/But there is a great need forvad-^ ^thinking/of business^im this way1^
which quite, evidently lies vat the nance the services ot
government,/tional/growth because; while in^-^^ vancihg^'- research inr. the-^private shotddt reffiove-much-thfe-'desir^
root of the present lack of busi-. the
companies have paid the larg- novation and education-and many 'sector for continuing, productive-* to do thai? kind of'shunting/ ^" 1 !■'

in

our

this

country in the way that
system has performed so magnificently for so many years?.

engaged in
energy, projects
and

atomic

-

.

23

are

equip industry with new and better plants and machinery. This in

areas

,

.

bfss AcanUddnce ,in government, is est tax bill of any industry-in the other factors aid national growth, purposes
the
Administration's uncertain at--.United States.

titude

towards profits.

And

Corporate Profits

profits since
shown
by
the

clearly
which

.

have

national
ago,
was

occurred

product.

compensation

in

of

is

,

— research which even- - - - In other words, confidence is d
ultimately evidenced by the" tually pays for itself, creates jobs bridge; it needs'^support at* both v
installation of better plants and and generates taxes.
Apprehen- ends and it needs to be constantly
equipment. * '
,
,.v r
sion regarding3 the-entrance-of" kept in repair:-v-. a- ..y /

it

-

generation

and

about

government owned

14%

changes

1940 and is

the

ernment

net

years

employees
$154 billion, and it has just




*

and

1950

Twelve

•

the

light of this outstanding record off achievement
service, may I ask why power

•

What has actually happened to
corporate

in

sary?

transmission

now

was

in

nearly 23% gov-

owned?

Is

that

g0 would it not be

a

public

serv-

ice to provide—if at all possible—
a

yardstick which would

at

compare,

regular intervals, tax-consum-

Is much of it duplication of
facilities
at
artificially
Is it the effi-

ing

and

tures?

tax-producing

expendi-

Would this not contribute

something to

our

national health?

Finally, may I conclude by say-

government into research in fields
which are essentially of private

ing that old concepts never die—

widespread, is another
confidence-detracting factor, and

away.

concern is
is

neces-

private

low interest rates?

is

a

detriment

to

research

itself.

they

never

even

seem

to

But if the concept of

derlying

and

fade
un¬

inevitable antagon¬

clear-flowing spring that

ism between business and govern-

gushes out of the ground, research

ment can be laid to rest by mutual
understanding and mutual action

Like

and

a

development oriented toward

Volume

which follow
accord

will have

all

us

It is the

live

to

gratitude.
that the great
and the great

way

complex

government

reason

undying

only

industrial

can

6168

timerthen the generations

our

in

195" Number

of

this

rise

and

great

in

11 •

T}
| J

|

X
inr«

^

)| 1 (

|

)i Til

I

1

t^ti

j

a

•

the

advancement

Electric

institute

jersey, June

Atlantic

Edison

City,

1962,.

,

"'

-

of-the

,

j

.

New

1

"

blg

business

terms

in

of

re-

<<We weren,t at

We didn't sit in

underwriting.

which is offering $25,000,000

Gas System, Inc. 4V2%
debentures, due June 1, 1987, at
par
and accrued interest.
The
group won award of the debentures at competitive sale June 7

bid of 99.271%.

a

Net

"But we can tell you
mately what happened,

initially be added to the
general funds of the company and

the

oonortunitv

The debentures

redeemable

are

from

104.50%

to

the

cision

for the sinking fund beginning
1967; plus accrued interest in each

vestor

and

par;

par

case.

ates

to

York

City, Columbia

service.

All

able

across
not

a

was

the

nation

percentage of
even

ceive

that

too

large

customers do

our

know;whether they re-

power

from

a

local

to

the

are

attribut-

tax-exempt

status

and subsidized loans at taxpayers'
?*pfns* and J° tbe further fact
that the only investment by
C0~°P members is the nominal
membership fee, aggregating nationally 1-2% of the total co-op
investment. In calling these facts
to publlc attention, we made the
^ther point through our advertising that if Carolina Power &
L3gbt Company could obtain all
1
capital at 2,% and were
tax-exempt as are the co-ops, we
could reduce our cost of service

spread

task. We are appalled at the outset to hear from polls conducted

sort

from

and

equity accumulations

of the
issues—a knowledge of the truths
that we all know. This is no easy

approxi-

developed and publicized.
Perhaps some pet public power proj-

exoan-

sPeech- Mr. Ellis
"enemy power

the

with

the

in-

owned

_

,

companies in the
transmission lines in

of

V

.

^

'

: jn

to

order

llt1^nnh^iv

caid

undoubtedly

Someone

<T

Only by

said

renewed attack on the
citadel of Federal legislators can
a

government

agency or an investor-owned util-

Iwake

0f everyday living, entertainment, newspapers, over television and
and amusement. Therein lies the radjp
stations, and pamphlets
t challenge-to present clear- mailed to customers served by the

ly' entertainingly, and effectively investor-owned companies.
position to all the people.
Itwas J^nifjcant that 19 newsWhen a customer taxpayer of Hae cs aEsrs !?e fate ran 2? ,edl".

ours understands fully the' one
fawrjable to our point of
simple
proposition
that
every
v Not a siingle newspaper, to
believe, just as whole- time a cooperative acquires a cus- f" O11^0^iedl\ian a.?. editonal
heartedly, that, as soon as possi-: tomer, he, the taxpayer, subsid- "J support of the Position taken
ble, co-ops should start getting off izes that customer, his interest is by the cooperatives. With truth as
we

I

hope to save the cause.'"
am still quoting.

"We

Uncle Sam's

sore

back. With 90%

of the co-ops, that was five years
ag0
t
>

J#

.

Misleading Advertising

oper-

interconnected natural gas

an

some

eXCUrS10nS^to ^ ^A^ru^ Sfi^hon

cooperate

building

Headquartered at 120 E. 41st St.,
New

same

to

the West.

...

crisis of

new

sS elefctriflcatlon 18 threatened with

to

vast

companies"
and
castigated
the
Secretary of Interior for the de-

at

ing

pastures

referred

at regular redemption prices rang-

for

^^uLh excursions^nto

^ener
In

of its subsidiaries.

«a

required to

development of
their territories through the initiative of the people they serve
was
discredited when attention
was called to the fact that their

are

^

b^a thT coooerahves

^

proceeds from the financing

;

were

toad from a position of vast ects had failed of enactment. Per- ity, much less are they concerned
strength and Prestige that you haps some national leaders or wjth the query. The subject is
have created- Take advantage of periodicals have been saying un- not basically an appealing one
^trns^ouTav^lt'' °Tg*?' ki^ tMngS
•
•
Most
db not lie
^Proximately 40%.
^
Because of the new crisis, nights worrying about governThese and other pertinent facts
tn
gr„ai
w
oratory went on for hours to con- ment encroachment on business, were brought to the attention of
^een^^ competed Mr'^Ellfs now ViUC? J
del.egaJfs +tha* rufal They are concerned with matters the public through advertising in

will

program

the meetings,

on

We haven't received copies of the

biggeropportunities,

Columbia

on

convention,

resolutions adopted.

_

group

the

sponsible enterprise, in terms of

Lynch, Pierce, Fenner &V.They. require ,bigger leadership.
Smith Inc., and White, Weld &
,(v
ou-Wu7 provide it.
Co., New York City, jointly are
jf°™r J°b today, as I see it, is to
an

ownership

thetic.

Merrill

of

inadequate .tax

are our natural allies,
woefully uninformed
and are now almost totally apa-

op
News, published by a New
Mexico co-op whose leaders see

society generally—and still growJng blggel- Tbereare bigger problems
and

■

1

Debs. Ottered.

managers

of

meet the demands for

government

But they

1S

interest to the co-ops at
approximately
twice
the

rates the co-ops

these people

Northern Rio Arriba Electric Co-

of

people, of economics and of
• i

AX'f

local

Referring to that convention the

construction

tem

Tnr*
1IIC«

'

Oybieill,

JLX/YJpCCLlQ±V71± the problems

rapidly and efficiently as pos'get everyone hooked up

as

you

37

lie officials—local, state and na- pay on.,,money borrowed
tional—who must struggle with REA. The co-ops' claim of

and energized.'
through the hypocrisy of NRECA,Our
challenge
is
to
how thecal, efcctric sys- had thi^tosay: ;; :: ■
abroad an understanding

^

Columbia'Gas
Qirofnm

"R Q1 fYF!

i

Cites Another Witness

generally believed to be

sible:

,

rates

revenues to

was

by Mr. Biough before the
Convention-

H

Q

O

paying

owned utilities—all voters, if

please-and the thousands of pub-

}

Continued from page 20

Annual

(JLli c\t ill

I

jL

a

r°le

30th

III

I

( .HlTl HQ T K H i A
X C* V/CJ111 KJCl U X vJCJjLJl

demanding future.
address

(2789)

millions of customers of investorLI

rl.

Xll-LCLL lllGtClCUl l

■T""

*An

'

^

I Ml

.

/T

Ta

nation

together

The Commercial and Financial Chronicle

...

.

"Why haven't we become out-

support
™aay segments of the Public

aroused; When a state or local
official understands that every
REA customer which could be

iLFiS?!

position to 1the

served

committee

co"op Dllls d^.d m

by a taxpaying utility
system, composed
of itself,
18 the NRECA
casts long ago.
• •
'
means the loss of tax revenue, he
operating subsidiaries and a sub- advertising program in 1960 and is
"Probably because at least half begins to take interest. Our nasidiary service company. The op- flooding national media with half-' the'leadedfoelieve^StiBt as we do tional program of advertising has
erating subsidiaries are primarily truths and distortions, such as:
in the face of a well-oiled been good, but it should be betengaged in the production, pur- "America's rural electric systems politicals J machine v(our
^ own) ter. At the local level we should
chase, storage, transmission and are outstanding examples of free ' which has been building ■fO'rH20;; use every medium - TV, newsdistribution of natural gas. Retail
enterprise
A finer example years, they haven't the guts to papers, radio, bill inserts, direct
natural gas operations are con- 0f
private enterprise—one owned stand up and be counted."
r
communication, civic club speeches
public favor,
embarked upon an
curry

nee.

^

What People
The national

Droeram

ex£and

and REA to

•

Should Demand

isin

Bie

direct

interests

governments.

of

It

of NRECA

the subsidized

and tax-exemnt rural

co-oo

oner-

with

conflict

state

would

and

local

mean

the

ducted in the states of Ohio, Penn- and
; : operated
by
4%
million :
We applaud the courage of this —with carefully planned, appeal- further erosion of state and local
sylvania, West Virginia; Kentucky, shareholders—would be hard to
co-op
manager.
Our
industry ing, and intelligent communica- fax bases while these governNew York, Maryland and.Virginia, find
The cooperatives are not should be no less candid in giving tions.
Do not overlook the fact mental units are hard
pressed to
Tn addition, the System engages in subsidized
and
get no 'gbvern- the public the facts—so that more that
the
cooperatives
are ' enfind revenues to maintain services
wholesale operations, selling ment aid'
>
Cooperatives are the of the real farm leaders who de- gaged
in
an
advertising cam- to which they are ■ already comnatural gas to non-affiliated pub'only hope for a million forgotten plore the motives of NRECA will paign, filled with distortions and mitted.
To combat this program
lie
utility companies for ?'resale Americans'." The sole purpose of be encouraged to speak out.
half-truths. This we must combat successfully we must have the
to their customers.
Certain sub- this
advertising program is an atour task is to recognize that we —with the facts. I feel especially support of the taxpayers,
sidiaries produce and sell gasoline
tempt to create a climate of public are engaged in a great conflict— convinced of the absolute neces.

.

.

.

.

*

When th

reCOg"ize

t0

^ellq

duces and sells
duces and

On

ArY^rirV

oil
oil.

-^

unaudited

basis, for the
12 months ended March 31, 1962,
the company and its subsidiaries
an

power

throughout America.
Several

months

I accepted

ago

invitation to attend

an

Directors'

meeting

a

National

the

of

Farm

^ gross ^venues of Electrification Council in Washand consolidated net

$546,915,000
income of $46,964,000.

iipA.

•

T7

i

i

n

As

Council.

you

know,

one

half

lin,

iiies<

tered Representatives
and four men, have

E.

one

woman

joined Francis

Co., 29 North FrankStreet, it is announced by
Campbell, Manager.

Fred E.

Mrs. Mary
Kenneth

_

William

Donovan,

country.

«

f

.

Pressed with the earnestness and

formerly associated with the

llclPated.It was immediately.(apParent tbat
serioasly
concerned with, finding practical

firm

P.

of

•

■

recognize

these

cannot

industry

continue

Crosby Gnrno
Corpo-

ticipated actively in the discussion, I could not help but think

—

Cm*hv

-

Rising and public relations

r

v

+

u

^

,

m

customers will be enticed,

The tide is already turning in that
We, then, must battle

direction.
fnr

f

o£

*'

Martin,
the

and

for several years
retailing of mutual

individual

-+J S

fllrJf
of

with the well-being
ers,
as

a

rather
means

form^

the^farmthan^usmg; the legislafar"jcr
of promoting

the story—the facts to all the peo-

bf

n

pnd

seCTecv

^

tn

situation

for

discriminatorv

vestor-owned

companies

serving

^ai",°1f!ua11

veil

REA

for

&

industry on the national level,

by

careful

0n

the local level,

facts-

industrial areas of the nation, and
for an end to costly and unneeded
government generation facilities,

0ur

it was made and at the

time gave the public the

as

same

must be done. But it can be done

+hfir only. by tbe coordinated effort of

eff°rts and challenged each state-

ment

the

liftine

surrounmM

f

of all of us
and by much

attention

perseverance

as

^rhnlPQalP rpn?p5pnfnfivn

wholesale represents ve.

funds

Our task—indeed, our duty—as

barrage under the appealing title

KhlrtSmlErtta ^0W TrndirfUl lW0S^the ha5t oyf the expansion of rural Surprising
Femandina
Beach
Fla
Jhe REA wlr^eauallv Mn^rned c0°Peratives into the urban and nevertheless
in

agency

Opeiation Fair Play. One ple Truth can be our most effeca f-true or completely untrue tive weapon provided it is wielded
,8tataPent aftef anotber aPP.eared in such manner, as to: impart to
m . big advertisements' *m news- the public knowledge and underWith rate structures set Papers acr°ss the state. The in- standing. The job can be done. It

year

^

ration, 35 Congress Street, national
distributor of the Fidelity Group

En^Trnv
-BOSTON, Mass.

Mr.

immediately

customers

move-

exempt organizations. Each
the co_opS) with the taxpayerg> dollars, are growing astoni$hingly. In most states, they are
>outside the pale of regulation or
tax

proving the farmer s position, and

oflivkm
raising his standar
1
As I listened to those who par-

Fidelity Group Names

active

dential

■K,'ml:ll9TflflMAllf

,

successful bouth Carolina Incident adjacent to already existing co-op
The electric cooperatives had iines* (2) the end of secrecy in
two bills introduced in the South rea' by requiring the holding of
Carolina Legislature shortly after public hearings on G & T loans;
guish: each fire lighted around it convened in January —one to (3) interest rates that cover the
the nation by the social planners provide exclusive service areas Federal Government's cost, inbefore a general conflagration en- and the other to permit service eluding administration; and
(4)
^ues—f0r R then will be too late, inside a municipality. An adver- fun tax equality,
must

This

dedication of those who par-

Frank

Butler, Herrick & Marshall, which is closing
its West Babylon branch.
V
;
:
■; ''

of

this

they will surely demand: (1) leg-

of real intensity, because of an islation to prohibit co-ops from
experience with the recently ad- taking customers that could be
journed South Carolina Legisla- served by the full taxpaying utilture.
ities, except those farm and resi-

frankly for what they are
and develop a positive program
designed to expose and extin-

.

.

Hatchman

investment

citizens of

aD_

PtrpeArentfacPtS

During their discussion of plans indefinitely to compete favorably was employed by the co-ops which resp0nsible citizens, individually
Kipin, Edward Baker, and p^ograFls' 1 was ™uch lm~ with government-subsidized- and forthwith released a propaganda and as an industry, is to present

Favuzza and
were

the

0f
we

Jndustry Farm Electric Utilization

m.

Five Regis-

Y

tax-exempt power at the expense

De0Dle know and

aU

ments

the Inter-

as

I. duPont &

N

tendency and every
small effort toward expansion of
every

mgton. This organization was, un-

its Board membership is drawn
from ^he electric membership cooperatives and the other half from
investor-owned electric util-

HEMPSTEAD

of every
struggle and to combat at every

til last year, known

With rrancis I. duront

th,e Signifi" ^ for.
""toate success
aspect of this of, a public information program

cance
turn

precfate

clearly

and

the public, but along the line.
true, was the fact -^"address by

'enthusiasm

all

to

Mr. Sutton before the

that the investor-owned power 30th Annual Convention of the Edison
companies
in
South
Carolina Electric institute Atlantic City, New

serve more rural customers than
are

served

Jersey> June 6- 1962-

by all the cooperatives

securities,
will
help
Florida
investment
dealers sell and promote Fidelity

tion and activities which serve
neihier the best m eres
o
e
farmer nor our free- enterprise

^V*Pd' ^ldeld:yFund, and
Capital
Fidelity Trend

than one-tenth the taxes that 0ffice'' at 2401 Fifteenth Street
annual
tne
thpv plnimpri in thpir privprticin^
01Ilce ,ai z^Ui r111
r! c ;
thousands of co-op members in objective single-handed
and this meY claimed in their advertising under the management of Richard
attendance shouted approval to 50
is the burden of my remarks here, to have paid. Their claim to be w Smith.

Fund, sy_
•
Puritan NRECA

f una.
Fund

Fni-m
rorm

Fimrl Consultants
fund Fnn<nilf-anf-<

STATEN

ISLAND, N. Y.—Fund
Consultants, Inc. has been formed
with offices at 344 Victory Boulevard to engage in a securities business.

Barbara Palace is

pal of the firm.




a

■.

Pnnvent'ion
convention,

the

Taxpayers Must Be Informed
This

we

all know.

Likewise, it

.g oby.oug that the leaders Q{ thjs

industry

cannot

in

the

Equally surprising
was the fact that electric co-ops
in

South

Carolina

had

paid

less

public) who are affected adverse- from their own official report to

connection whatever with

had

no

the

stated

of the REA
Act and the relationship of most
princi- 0f the remaining 17 was indeed
remote

purposes

Beckman

SACRAMENTO, CaUt.^ Becxman

0nly if we elicit the aid of those non-profit organizations was blast-

people

Thirty-three

resolutions

Calif

SACRAMENTO

accomplish this
1,^/^ +hic.

resolutions, urging deeper erosion
f
f '
J5 f
oVcfem
of those

Beckman Branch

state.

(a

vast

majority

of

the

ed when

we

published

statistics

„

tI

.

r-i

_

Form Hams, Clare CO.

Washington showing that they Harris, Clare & Co., Inc. has been
will we succeed. The people I had millions of dollars in what formed with offices at 82 Beaver
speak of are the millions of tax- they-called
undistributed mar-, street, New York City, to engage
payers in this nation who are gins." A large part of this is in- in a securities business.
Harris

ly by these government programs,

providing

the

subsidy

and

the

vested

in

government

securities

Freedman

is

a

principal.

1
*|TJ 'WVrfHi WtyRttA

<•

IH«

.ffW»l

I

*«■**.«

amiw^tiwm

*

The Commercial and Financial Chronicle
38

.

.

Thursday, June 14, 1962

.

(2790)

Y

that the full influence

Were

Stock Market Prices

cure

uuic

the

characterized

has

that

past three years.

Ratios

mind, let us look
moment at the level of stock

for

a

in

this

With

Based

prices:

&

Standard

on

find that in
the four years 1954 through 1957,
stocks as a whole sold at an av¬
erage
of between 11.2 and 14
times earnings. In 1958, this aver¬
age moved up to between 16 and
17 times earnings, and remained
there throughout 1959 and 1960.
Last year's bull market brought
this ratio up to 21 times earnings
for the year as a whole, and to
about
23 times earnings at the
high point toward the close of the
year. The drop in the market over
the past few months, coupled with
Poor's

we

averages,

the increased earnings in

prospect

back

1962, brought this ratio

for

15
slightly
under the level that prevailed in
the 1958 to 1960 period, but more
where it is today—between

to

and

earnings

times

16

—

than the level of earlier years.

certainly be the last one
to try to pick an exact and appro¬
priate level for the price-earnings
ratio

of

stocks.

common

But

one

clearly in any
review of stock prices: the 1961
price rise cannot be credited solely
to
the
prospects
for improved
earnings. The estimate of 1962
corporate profits contained in the
January Federal Budget document
—which many have criticized as
being overly optimistic — forecast
pre-tax profits of $56.5 billion.
stands

thing

out

But stock averages

about, 19

were

last December

times

this

even

level

of
prospective
earnings,
clearly, something other than the
profit outlook must have been in¬

volved in last year's bull market.
We

all

know

what

that

some¬

thing was—the belief that infla¬
tion

just around the corner.
Today, that belief has been pretty
well dissipated. And that is the
was

basic
in

behind

reason

stock

prices

months.

the

decline

the past few

over

,

Myth and Mirage
Now how did stock market in¬
vestors

make

such

an

last

error

year? Apparently, they abandoned
reality in pursuit of a mirage that
out

grew

of

myth. The mirage

a

imminent inflation. The myth
the belief that government

was

was

deficits

inevitably accompa¬
nied by inflation, no matter what
are

the state of the
economy may be.

intended to subbalanced budget in January.

a

despite this, the myth prevailed. The belief that any Federal
But,

heights. A reaction was inevitable,
fact prevailed over fiction—

once

-

.

morq powerful

than

proved
De¬

reason.

mand

inflation, the only kind of
budgetary pol¬
an
important role, is
clearly related to the state of the
inflation in which

icy

plays

whole
is

national

not

and

economy,

governed

by

it

single

any

factor such

as

Only when

budget deficits com¬
high demand to put

bine

with

the Federal budget.

pressure

on

demand

inflation

Last

year

from
was

the

just

supply, do they bring
in

this of

For

case.

starting

recession. There

their

course
our

to

far

economy

pull

were

wake.

was

out

large

of

num¬

bers of unemployed and there

was

widespread under-iitilization of
plant capacity. The President and
a

other members of the Administra¬
tion consistently stated that

they

intended to devote their
energies
to
maintaining the stable price
level
of

so

essential

I

our

balance

myself,

decline

in stock

out that while
cit

a

pointed
substantial defi¬

in prospect for fiscal
1962,
would not be
was

inflationary be¬

cause
of the excess
capacity in
the economy. The
President made

clear,

as

early
.-r- ..

in

abroad

circles

efforts

the

we

making to right the imbalance
international payments. If

are

in

a

financial

in

confidence

of

with

connected

be ; somehow

lack

prices might

our

this

true, it would be serious
the facts are
completely to the contrary. There
were

indeed. Fortunately,
is

in

item

one

of

balance

our

payments which is generally considered to closely reflect any

flight of capital. This is the item
known as "errors and omissions,"
wise

Until

recorded.

had been

item

a

the

for

first

time,

this

1960,

favorable

balance.

payments

our

it

one

In

in

1960,

showed

a

substantial deficit in this particuaccount

lar

continued
this

deficit which

a

was

1961. However, so far
this sensitive item has
again returned to its former
in

year,

once

status

as
a
plus in our overall
payments picture—a clear indica-

growing,

tion„. ,0^

confidence

t

as
!•* •




*

last

July, that

disregarded.. Disregarded
other efforts of the Ad-

ministration to provide a better
climate for economic growth—and
-thus, a better climate« f or - business
.MLgetMSral.

.

,.

refer

I

in

particularto., the

in

entering the Treasury..,I
then, that despite longstanding business complaints
about inequities in the provisions
upon

found

not

are

and fair,

reasonable

make such further adjust¬

ments

be mutually agreed.
In this way, we intend to keep our
guideline lives fully current with
future developments^ so that they
may never again reach their pres¬
as

may

/

unrealistic status.

ent

All

this

of

has

required a tre¬
mendous effort by the Treasury.
And I must say quite frankly that
it

difficult

is

for

to

me

compre¬

than

not—lower

,

than

every one

of

between business and government

buying gold in New York
transporting it overseas.: All
this is not surprising when we
take
account
of
the
continuing
improvement
in
our
payments
situation. In the first quarter of
1962, despite an increase of ir.Q'fl
than $500 million in our imports
as compared to the unusually depressed level that prevailed during the first quarter of 1961—an

in the administration of depreciation could be eliminated by ap-

of

increase that

was

the natural

re-

economic recovery
turned out

our

overall

—our

deficit

to be

just a little more than $100
larger than in the same
quarter last year. Leaving imports
aside, this means that there was
a solid improvement of about $400

million

million in

all

the

other

elements

balance of payments.

our

Balance of Payments

changes
in ; our
approach. Accordingly, .we are now
preparing new, more flexible, and
more objective means of measur-:
ing the reasonableness of depreciation charges claimed by taxpayers.
This
will
allow
the
taxpayer to exercise judgment in
selecting depreciable lives, judgment based upon his own plans
for the future, rather than forcing
him to rely primarily upon historical experience.
It will void
haggling over minutiae by looking to the reasonableness of the
taxpayer's
overall
depreciation,
rather than to the depreciable life
of each and every separate item,
And it will prevent the taxpay¬
er's judgment from being coritroverted except where, by an obpropriate

Preliminary indications for May
which, mind you, would include
any repatriation of foreign funds
as a result of stock market sales,

jective test, it is clearly not reasonable. No longer will a change
in revenue agents bring with it—
as it so often does today—a re-

indicate

best

examination of depreciation prac-

payments position
when the return

ticjes. And industry will, for the

that

month for

it

our

will

the

be

first time, be certain that the law
of temporary, year-end window- is being administered with idendressing
outflows
brought
ap- tical results in every part of the
proximate balance in our overall United States,
since

January,

payments. So far this year, our
overall
deficit
appears
to
be
running at an annual rate of about
$1.5 billion. This compares with
last year's figure of $2.5 billion,
and the $3.5 to

that

$4 billion deficits

characterized

the

three pre-

I have often
stated, we intend to work vigorously until the deficit is wholly
eliminated—a result we hope to
ceding

achieve by

Cites

As

years.

the end of next year,

Other Myth of Anti-

Another
current in

myth

that

has

business circles

cent months

been
in

re-

is the misconception

_

™

y

Target

...

D^e f°r Depreciation
Jteiorm

the

clined. It reached
last

their GNP to

new

point

low

investment

new

as

we—and, it is important to
that over the years, some
have grown twice as fast

were

note,

of them

have.

we

as

the

Since

investment has

new

relation

to

rates

a

of

ment
rate

if
of

we

are

level

direct

cor¬

increase

to

of

growth, we
our invest¬

simply must increase

our

the

than

trick-'designed to avoid

tactical

..

depreciation

Of

reform

very

we
were working
bring about. Other,
businessmen thought that the'- in¬
vestment
credit
was
merely
a
temporary anti-recession
device

that

practices
so

hard

•

to

and:seemed

peated
of

not

the

other

reality.

over

We have

- -

•

to

less-,

It

was * an- v

>

triumph of myth
-

.

learned, however, that

opposition
far

permanent part

as a

of the

our're¬

that the credit

structure.

tax

case

hear

to

assurances

designed

was

the, credit

widespread

is

now

than - one
positions
taken by certain national business
associations.

Our

.

r

the

correspondence

and

conversations

that

on

clearly show
subject the position
taken by these national organiza¬
tions no longer accurately reflects
the

this

view

For

of

American

business.

have

businessmen1

many

changed their opinion during, the
past

they have

come to
proposals better,
particular as they have
to appreciate the fact >that

year

as

understand

our

in

and
come

the

investment, credit .is

tended
rather

as

In

in¬

not

substitute

a

as

ciation

for,. but

supplement to, depre¬
;
r;'-:

a

reform."

today's

atmosphere-of con¬
of "our

over','the."adequacy

cern

rate

of

economic

recovery, ,one

thing is crystal clear: the .uncer¬
tain fate of the credit, is beyond
question exerting a negative- in¬
fluence

—
.

,

credit,, so that business could have
a

solid basis on;

the

:

future.

Tax

Income

which to plari for
'• <'"•

-

?

Reform Proposal

Promised for Next January
In the

slightly longer term there
much that can be
done. And we fully intend to do
it. There has been growing talk -■
is,

of

course,

desirability-

in recent weeks of the
of

reductions

tax

income

stimulus

the

to

a

as

I,', for
one, am glad to hear such talk.
To me, it portends a sympathetic
reception to the - overall income
reform

economy.

which

on

we

have

working since last Year," and n

which

first promised by the
his tax message a

was

in

President

The best and surest way to ob-- year ago last April. This tax: re¬
form program will. be^ ready, for
more investment in new plant

tain
and

equipment is to improve the
profitability of such investment.
And

it

that
credit

for

just

chose

the

was

we

to

this

ministrative

reform

reason

investment

complement

our

" ad¬

of

deprecia¬
tion practices. For the investment

credit, through the
the simple concept

operation of
of a ' return
over and above original
cost, is by
far the most powerful stimulant
to profits of any of several pos¬
sible forms
tive.

For

of

investment

each

dollar

of

incen¬

revenue

action next Januplan to submit its
general outlines before the close
of the present session. It will not
be a hasty, ill-considered reaction
to the gyrations of the stock mar¬
ket. Rather, it will be a funda¬
mental restructuring of our in¬
come
tax
system, .designed
to
Congressional
and. we

ary

term

maximum
growth.

the

promote

Over the past year,

I.have fre¬

the

that

quently

stated

element

in this

a

of long-

economic

to .readjust

proposal

central

reform would

the

be

rate

lost to the government, it provides
two to three times more stimulus

structure of the income tax. I had

to

not

profits than

cable form

of

.any

other practi¬

incentive.

thought.it necessary to spell

out

,j

fact

the

readjustment

that

readjustment
there is

meant

-of

necessarily

the business community have been
cool to the idea of the investment

downward.

credit.

make clear that this

I

am

well

aware

This is

that

some

difficult to under¬

stand since the combination of the

But

in;

case

misunderstanding,

any

it

-

means—a

tion

in

me

.

top-to-bottom reduc¬
of

rates

the

let

is just what
income

tax.

Naturally, any reduction will cost
the government revenue,, and will
bring with it the need to broaden
the
as

base

to

whole

of

our

offset
or

structure

tax

reductions

the

in part.

-

-

so

in

,

crystal ball
the Bulletin F schedule of depreWhat has been the basic reason
reports I have read, there have
ciable lives, reducing to some 75
behind business opposition?
been no decisions on any of the
)'
overall categories—only a few of
I am convinced that it has been
details. This applies both to the
which will apply to any one busimisunderstanding,
plain
and extent of possible rate reductions
ness
5>Q00;-odd items that are simple. In our talks and corre¬ and to the form and extent of pos¬
•

EE???

y carried in Bulletin

F.

While we will have done our best

spondence

with

business

execu¬

tives, and we have talked to many
of them, we were
frankly aston¬
ished to learn that the chief
of

opposition

conviction

i

was

that

a

our

source

widespread
.investment

-

moving. There is no: ap¬
propriate action readily available
that would be more immediately
helpful
to
the
economy
than
prompt- enactment
of
the 1 tax
economy

been

More Profits

business" spending

on

just at the time when an increase
in plant and equipment expendi¬
tures is badly- needed to keep our

tax

growth.

Investment Credit Allows

■%

i

a

At the same time, our
free world competitors have been
raising ; the proportion of their
GNP going into plant and equip¬
ment. By last year, some of them
were
devoting twice us much of
year.

We have now reached the point credit and the
forthcoming ad¬
where I can be sure that a final ministrative reform
will, for the
draft of the new provisions will first time in many years, put
be ready for publication by the American
industry on a compa¬
end of this month, or early in rable footing with its
foreign com¬
July. At the same time that we petitors in the tax treatment of
publish our new procedures, we capital investment in
machinery
will also publish our revision of and equipment.

Kennedy Administration }? achieve . truly realistic guideis pursuing an overall anti-busi- *me hves, we will always be preness policy. In discussions of the
pared to meet with any industry
recent steel price episode, the fact which feels that the lives assigned
that

that more than

business

assist

to

,

and

flection of

of our efforts

from the very start

.

the

cost

But this is not all. It was clear

;

a

might believe., from

;

.

credit proposal was no more

:

,

same

often

anti-business."

as

-

lessened, examining each and

not

the dollar.,,

belled

True, two basic studies had been we were to meet foreign compe¬
initiated in the summer of 1960, tition and stimulate the increased:
studies that were scheduled for investment needed to ; spur our
completion two years later, -in rate of economic growth.
~
mid-1962.
These
studies
bore
-First; as to foreign competition:
primarily on the depreciable lives
It is a hard fact that every other
of business. property. Nothing at
industrialized country in the free
all had been done on the equally
world. provides special incentives
important matter of reexamining
to investment in one form or an-'
the procedures under which the
other. We can do no less if we
guidelines for depreciable lives
are to compete successfully in the
were being administered. And it is
market places of the world. We
these procedures, as much as the
must have both the 8% investment
lives themselves, that have been
credit which is now before theresponsible for the widespread
Congress and the full benefits of
sense of frustration among busiour new administrative reform, if
nessmen in their dealing with the
we
are
to
match
our
foreign
government on the depreciation
competitors.
;
"
problems.
"/
I
The same is true if we are to
Early last year, we determined
stimulate the increased investment
to tackle this; problem head-on.
we must have to speed our rate of
yje expedited the studies of. the
growth—an essential prerequisite
basic data that were already unto
the
solution- of our number '
derway so that we could receive
one
problem of unemployment.
the reSults by the end of 1961,
Throughout the Fifties, the pro¬
rather than in mid-1962. And we
portion of our GNP invested in
started right from scratch in- replant and equipment steadily de¬

<
fhe assumptions on which the law
story is told by the had been, administered for;.the
price of gold in the free market past 25 years. As we went along,
in London, where the gyrations we were pleased—and a little surof the fall
of 1960 have given prised—to find that all, or pracway to a relatively stable market tically all, of the controversy that
at
prices no higher and—more has long characterized relations

The

Business Policy

repeatedly

are

it

to

and to

depreciation, little had been realistic lives and * improved ad¬
done
to
improve the situation. ministration would be required if

suggested that

it

heard

have

the

payments.

I,

it

to

of the gov¬
before

days

f0r

Price

In Gold

Improving

myth

Capital nor Rise

No Flight of

of

but

later, it always does,

or

sooner

as

to

them,

few

how
an
Administration
major reform in the administra- hend
deficit would be inflationary no. tion of depreciation, for Federal which is. on the verge of carry¬
matter
what
the
state" of the tax purposes that is now nearing ing to fruition such an enormous
economy
encouraged speculation completion. Depreciation] reform, and important reform to help the
be la¬
and pushed stock prices to dizzy was one of my earliest concerns business .community, can

The facts were far different and
clear enough for those who wished
read

imfore--

economy

which includes all items not other-

I would

also

cast for 1962, he
mit

Extraordinary P/E

Year's

Last

the

in

uioVcinent

sharp

the

mind

in

having

3

Continued from page

earnings

Untrue Premises

on

a

successfully * exerted to se¬
a
non-inflationary
wage
a
iivj
nt in steel is too often

been

#

Based

had

ernment

Contrary

to

some

sible offsetting measures to broad¬
en the income taxe base. But one
fact is clear and that is
now

been

year on a

reform

at

work

for

proposal for

—

a

we

have

nearly

a^

income tax

proposal

basically

Volume

195

Number

6168

designed to stimulate the growth
of our economy—a proposal that
be ready for action at the
opening of the next session of the
'Congress.
•
will

The Commercial and Financial Chronicle

.

.

.

(2791)

case

Outlook for Investor-Owned

Gas Utility Industry

Conclusion

let me say that
the confusion of myth and reality,
of

conclusion,
with

fact

sidering

fiction, when con¬
complex economic

the

problems of the day, is not in our
interest. The
problems
we face are not easy. Their solu¬
tion requires the best efforts of

^national;

all

of

We

us.

must

allow

not

ourselves to be diverted from the

difficult tasks at hand by polemics,
emotion

prejudice, unsupported

or

is today

There

'by facts.
consensus

to

as

a

clear

national

our

ob¬

jectives—a Consensus that reaches
from

to

coast

coast

and

includes

both

political parties and all ele¬
our society. Those goals
are full employment, rapid growth
so that we may steadily improve
.our
standard of living, and rea¬
sonable price stability..'
1

ments of

■-

In the

.managed
those

past four years, we have
to attain just one of
—
reasonal price sta¬

goals

bility. In 1958, the wholesale allcommodity price index J of the
Department of
Labor
averaged
*100.4. Last week the same index
"read

100.2

—

change in four

no

'years. But we have not been so
'successful in achieving our other

goals. We must continue vigorous¬
ly to pursue full employment and
•rapid growth—without impairing
.the price stability that we have
already achieved. Success will

re¬

quire not only proper government
-policies, but also public understanding and acceptance of these
policies, as well as real effort on
-the part of all sectors of our so¬

ciety.

We

I efforts

on

must concentrate our
genuine problems, and

not

permit ourselves to be divert¬
by exaggerated fears or hobgoblins—be they imaginary infla'tion, such as that which preoccued

*

Continued from page 18

income tax
Some

'fear

,

preoccupies

too

nessmen

'

!^

today.

♦Remarks

by

Secretary

Annual Dinner-of the New
Writers

;June 4,

Association,
1962.

Form

-

busi-

many

•

:.

',

v

ment

the arith¬
metic still further by suggesting again in the hearings on the In¬
ternal Revenue Code of 1954, and
that a regular stock - dividend
in the reports of the House Ways
policy would accomplish the same
result

carry

hypothetical cashwithholding plan, and at the same
time

those

accommodate

shares,

nents

share¬

These

original shares,
are
taxable at the capital gains
rate.
At first glance,
this -looks
like an easy way to alleviate the
double taxation on earnings paid
out

like

for

the

dends.

divi¬

Occasionally, stockholders
in

write

don't

and

ask

why companies
share
dividends for

issue

these

cash

stock

common

other

or

York

City,

almost

sent

dends

ities

dends

MOBILE,
ment

centives

,

Ala.

—

Peoples

Invest-

With "offices at 1050 Davis Avenue
Building to conduct a securities

larger

such

importance

business.

Partners

are

John Car-

starphen, Eddie L. Clemons, and
•Henry R. Davenporte, Sr.
\'

-

Dick & Merle-Smith Branch

that

divi¬

needed

Mass.—Dick & MerleSmith has opened a branch office
at 50 Congress Street.
The new

.

office Will be under the direction
of Evans R.
'

Dick,

a

partner in the

cash

themselves

divested

relatively larger amount of

proportionate ownership in
industry than the amount esti¬
by the arithmetic

of proponents of cash withholding
plans; (2) the logic of such arith¬
metic does not apply to the great

of

number

shares of gas

common

utility

common

which

do- not

and

utilities

the

(3)

out

regu¬

follow

cannot

the

Baker, Simonds Branch

Street

under

the

management




no

the

of

fortunate

growth

the

choose

to

of

cost

com¬

tional

and

who

investors

stocks
in

wait

dividends

hold

for the

that

are

life was
interest-free (govern¬
for construction ex¬
penditures, and was treated as
ment)
such.

to

a

be

facilities

our

com¬

man¬

pay

a

invested

on

well as to ultimately
about a capital anpreciaThe real

investment.

pleted in five years.
did

accelerated
alleviate

quacy
ance

od

not

of

to

serve

return

feed

back

the

vestors will suffer

an

the

for

issues.

of

A

better

important

so

because

of

its

effect

terest-free

loan.

panies that

come

as

in¬

an

Pipeline

to

understanding
a nationally
consulting firm on stock¬

deferred

holder and

utility

of

Since this problem is in
future, many opponents of
"normalizing" tend to gloss over
the results or ignore them.

under the Fed¬

against
earnings, the
taxes deferred by acceleration.
In

healthy

"normalize,"

some

state

help find
explanation, in lay¬
language, of the purpose

function

and

of

deferred

regard to

ing from accelerated depreciation

diction, disagreements

and

Flow-Through?

for

long-term financial

utility

management

will

questions of stockholders,
and the public.

answer

consumers

normalization
so

derstand in its efect that the

Conclusion

non-

The

best

public utilities in the
been
developed by
private
capital
in
the
United
States.
Respect has grown be¬
tween the company managements
have

world

to

and officials and staff of the com¬

missions.

^

But management 'must
continually strive for better in¬
terrelationships with regulatory
officials so that opponents of conservative accounting practices and
sound
long - run
rate
making

do not press the com¬
missions to "expedient" or politi¬

policies

cal decisions that whittle away at

return

basic

"the

Profits

!,

investment.

on

provide

the

of

much

"seed corn" for investment. Their
failure

without
offset it
and

will

attempt

with each
depending
upon
its
plant growth rate, business con¬

and

ditions,

vary

caused by

benefits
years.

to seek

ability

the

cover

The

of

loss

of

past

a

how

♦An

address

growth.

Gas

Beach,

Va..

dividends

utilities
1962.

gas

29.

FIND

QUOTATIONS
WILL FIND THEM

IN

Bank & Quotation Record
per year

—

.in

the tax

some

one

gas

way

arose

reserve

with

(Single Copy

This bound publication will give you

prices
"hard

on

to

all
find"

listed
Over

securities
-

the

-

—

$4)

as

the monthly

well

as

reserves

the

utilities found that
another their tax

rate

became
base.

In

deducted
some

from

cases

the

reserve more logically became
arising from post War II inflation,
and one which is still with us, is .part of the debt capitalization in
.the inadequacy of capital recoup¬ the cost of money review for rate

tax

those

Counter quotations.

result¬

or

Write

or

call:

WILLIAM B. DANA CO.
25 Park Place, New

to

York 7, N. Y.

REctor 2-9570

and

by Mr. Barker before the

May

NEED HARD TO

(Only $45

tend

perform¬

resistance.

Association's

for

seminar

cial

and

Recession

American

levelling-off period in plant

will

management's

earnings

their

flow-through

YOU

well

by the relative growth rate

ance

»of

and

problems,

measure

"earnings" also could be hastened
by

determine

to

of

choices

investors will

stocks,

its company's fundamental finan¬
cial

higher taxes

consumers

other

restrict

management is working out

each

passing out tax deferral
to

with

will

-

investment

utility

gas

company,

higher rates to

pace

factors

economic growth. In making their

it. The effect

reverse

or

time

keep

selective

feed back reserve, may

a

to

economic

•

major

tax

that

one

—

regulatory juris¬

dividends.

About

of

survey

to

as

charge

a

regulatory climate and a more
equitable tax policy—not in stock

The

a

workable

normalization

problem
surrounding
vs. flow-through is
complex and difficult to un¬

in

corporations

men's

The

relations, is

consumer

engaged

now

com¬

been permitted to

a

of

that Bozell & Jacobs
known

the

inade¬

attracting the large
equitv capital which
industry will require over

problem

knowledge

a

of

ahead lies in

per¬

normalization and flow-through is

a

which

of

years

the

sub¬

ever,
tion and confusion surround these

eral Power Commission also have

utility

in
no

fundamental

improving real earn¬
and cash dividends. How¬
a great deal of complica¬

ings

ini¬

attrition

ac¬

formance of

taxes, either the consumers must
pay more for service or the in¬

deprecia¬
the

amounts

What

stitute

\

problem

the

fair rate

a

flow-through, as
dividends, is

of stock

case

re¬

of

depreciation."

ex-

cept that in the case of amortiza¬
tion the cost write-off is com¬

management's

to

answer

the gas

Thus-

expensive

route

written

taxes,

depreciation allow¬
recoups only the cost
and not the replacement value of
plant, most gas utilities adopted
the early years acceleration meth¬

return

the

are

off for Federal income

old-

as

on

normaliz¬

same

the

have

economy

reasonable

the

tion

effective
agement should be able to

petitive

tion

is

that

fashioned notion that in

bring

This

remembered

stockholders

capital

an

loan

Although

should

most

of property

emergency

*

utilities.
It

celerated

may

of

effective

method that is used for ac¬
celerated
amortization, whereby

their

continue. However, this is too rich
financial fare for the regulated

of

lack

less

investment

new
more

ing

increases

likely

-

years

simply

the interest

serves

could be used later as

reserve

"feed-back" to pay future

early

hand, their
in earnings

growth

and

higher operating income
be captured through
rate reductions or by a lowering
of rate increases granted where

which

issue

expresses some serious

for the proposed
credit
"to" the

flow-through,

a

Chronicle

17, 1962, Treasury Secre¬

doubts about the cost to the U. S.

ported

same in
permitted

method. The tax deferment in the

brackets. On the other

rapid

Financial

higher

a

Commer¬

Government of accelerated depre¬
ciation and indicates a preference

allowed

income taxes paid result in

in

&

tary Dillon

charge

rate case, al¬

In

result

earnings

cial

ferrals, and the temporarily lower

the

over

is the

plant

-

can

dividends

code.

to

of flow-

in

capital. In The

of May

depreciation
passage of the

after

code

subsequent

of

accounting is made of tax de¬

no

ac¬

higher
income taxes when charges from
the sum
of
the-years'-digits or
declining balance method became
smaller
than
the
straight - line
a

follow a low pay-out
either with
or
without
stock dividends, to suit the needs
of their investors in high income

panies
policy

'

Claude G. Porter.

elect

straight line depreciation charges,

that

of small shareholders and institu¬

branch office at 313 East Mitchell

could

investor has for
very long the low rate of return
on
his
original investment that
is indicated by the original, very
small
current
return
resulting
from low pay-out ratios.

dividends

rapidly

tax

depre¬

tax

cost

return.

paid under acceleration and taxes
that would have been paid using

very

1954

is not
a

tend

would

accelerated

elected

was

in

expense

though

aid

whose earnings
are
growing
so

stocks

an

the

included

through

r

lead of those relatively few non-

regulated

states

the

The

.

the

encounter

earnings paid

on

those

of

repealed.

decline in market price of utilities

specialized investor does not seem
be fully aware that reported
acceleration
of the write-off in earnings of utilities using flowearlier years,
In. later years the through are distorted or over¬
write-ofjf woUld be corresponding¬ stated. The flow-through portion
of earnings represents a tax debt
ly less than the straight line de¬
preciation. By using the acceler¬ that ultimately must be paid (un¬
ated
method,
Federal
income less corporate income taxes are
taxes would be deferred in earlier very sharply reduced or discon¬
tinued, which is not very likely
years and correspondingly greater
in later years of the life of the in view of the national economic
Although
the flowproperty constructed in 1953 and situation).
through does not represent actual
thereafter.
earnings, the fact that it is al¬
Most utilities elected to adopt
lowed or required by several state
the accelerated depreciation meth¬
regulatory commissions and re¬
od and "normalized" the corpo¬
ported as
earnings by utilities
rate financial statements to avoid
themselves in such states (with
overstatement
of
earnings
and
tends to impress the
thus not to place an undue tax footnotes)
small investor with its validity. In
burden
upon
future consumers.
the long run the day will come
By setting aside in a tax reserve
when higher taxes reduce flowor other account an amount equal
to the difference
in income tax through, and still higher taxes,
life

their

and

as

financing

either case, the new law

order to raise at the

mated for them

in

accelerated

section

with substantial portions

made,

for deferred taxes

timed

would

in

businesses

write-off

total

prices of $1.2 billion previ¬
ously mentioned. Thus, they also
have

de¬

return

is to

cause

depreciation or continue
to
report
depreciation
on
a
straight-line basis.
Although the

lower

would

is

no

depreciation, tax wise.
In
several
states,
utilities
involuntarily
use
the
"flowthrough" accounting method, be¬

celerated

either
their
the stock divi¬

or

Where

the long run
negate the temporary
benefits arising from accelerated

effect

expansion.

rations

mar¬

shares which the arithmetic

called for in

firm.

PETOSKEY, Mich. —Baker, Si¬
monds & Co., Inc. has opened a

to

deferments

tax

growing

number-.of

These

BOSTON,

allowance

the
decision of
incur risk, and

in

management

scale would have

a

taxes.

the

help maintain a high level of tiated an application for a rate
in plant and equip-, increase. Of course, in later years
ment, that the speed of tax-free when higher income taxes must
be paid and there is no tax re¬
recovery of costs was of critical

repre¬

drastic decline in

a

original shares

and

ferred

from

well

were

if the

once

were

operating and managing
properties constructed with

law, utility and industrial corpo¬

on

lated

has been formed

at

incen¬

investment

prices, with resultant harm to

the

result

could

that

"liberalization"

all stockholders. Moreover, stock¬
holders would have had to sell a

a

that

divi¬

withheld

have

.in .dividends;

Securities

an

ci

methods

business capital
expenditures
below
the
level
needed to keep the economy oper¬
ating at high levels of output and
employment. Also, that they tend-,
ed to discourage replacement of
obsolete equipment and installa¬
tion of modern up-to-date equip¬
ment. Congress felt that the in¬

'

"

as

capi¬

ciation

Under the terms of the 1954 tax

produced

of

maintained

bill

actually paid by gas util¬
the 1955-1960 period, so

to

dend

the

of

tended to depress

in

that

ket

would

of all cash

half

the

and

present tax depreciation

been withheld

have

under this proposal

double:, tax

Peoples Inv. Sees.

being allowed

of

to

reasons.

However,
such
arithmetic
is
superficial and overlooks three
basic
economic factors:
(1) the
$1.2
billion
in
cash
dividends
which would

Committee

Senate Finance Committe. Propo¬

holders who need cash by making
it a simple
matter for them to
sell their share dividends.

Means

and

this

as

stocks held toy in¬
stitutions such as pension funds,
Dillon at the
charitable
funds
and
the
York Financial
like,

New

from

plant depreciation on
a
"cost" ba^is. Congressional in¬
tent was made clear time and time

the cash dividends.

on

writers

'

pied investors last year, or an
-'imaginary anti-business campaign
-by the Administration such as I

is

cost

tive reward for the effort and risk

"

In

tal

modest

a

In
the
short
run,
the flowthrough earnings could disappear

In the latter event

purposes.

sometimes

39

1962

in

finan¬

Virginia

40

The Commercial and Financial Chronicle

(2792)

there is

As We See It

Continued from page

1

the

"across

reduction

tax

ent

a

money.

which

seem

make it

to

by

ference. Our tax laws

year.

upon

What the President is
with

more

the

at

mo¬

one

be enforced equally
all. At the same time

must wonder whether the

elaborate

built up

is

ment

of course,

system that is being
and which must be

Congressional action
and cumbersome will
tax proposals he large
has had on his program for a after all really close these
good while past in addition, gaps without at the same time
of course, to certain other causing undue annoyance and
trouble in the operation of the
antidepression measures close
: S
to the President's heart. One new system.
certain

on

■

of these

proposals is resigned
Other Costly Proposals
to give a "tax credit" to cor¬
The other elements in the
porations which invest in new
President's recovery program
or improved plant and
equip¬
—if such it may be called—
ment. He is deeply dissatis¬
contains several proposals all
fied with the rate at which
business

of which will cost the Treas¬

is

investing in this
ury varying sums. His plans
way and is of the view, as are
to
make administrative
so many followers of the late
Lord Keynes, that once ways changes in depreciation rules
and regulations are, according
and means are found to in¬
to the President, designed to
crease this rate of investment
release for plant investment
the effect will be marked on
the

rate

some

of

manual—Friden,
Inc.,
Street,
Rochester
York.,
\
i

College, St. Paul, Minn,

Businessman's

Home
a

You've

Always

Financial

1961

System—1949-

Power

Allegheny

and

Data—Allegheny

97
2,

Operating

System,

Power

Inc., 320 Park Avenue, New York
22, N. Y. (paper).

"to

reduce

at

June

Gold

ing

Silver

and

.

San

Conference

industrial

Francisco

Cal¬

of the Inter¬

World—Report

national

the

for

at

McGraw-H ill

—

Book

Company, Inc., 330 West
42nd Street, New York 36, N. Y.

(cloth),

$7.75.

California Bonding Picture, 1962—
Brochure

Office

—

of

theJS|ate

Treasurer, Sacramento, Calif. K

methods

of

Commerce

of

the

of

United States, Economic Research

Department, Washington 6, D. C.
(paper), 500 (quantity prices on
request).
Differential Distribution Cost and
Revenue

Analysis:

proach—A
the

problems

tribution
of

of

Ap¬
of

some

measuring

dis¬

School

Administration,

Business

of

New

costs—Graduate

Business

reau

A

discussion of

Bu¬

Economic

and

with

efficiently — Doubleday &
Company Incorporated, 575 Madi¬
more

Avenue, New York 22, N. Y.

son

(cloth), $4.95.
How

to

Make

Research, Michigan State Univer¬
sity, East Lansing, Mich, (paper),

billions of dollars which

g e m e n

1940-1961—Investment Com¬

mary,

(cloth), $5.95.

in

Growth

Stocks—Victor J. Melone—Growth

Investment

Street,

Services,

New

How

to

Elmer

William
N.
Y.

68

York

Put

5,

-

Yourself

Wheeler;'—

Panic

of

/

■ -

.

1819r

Reactions

and

'

Policies—Murray N. Rothbard—
Columbia University Press, 2960
Broadway, New York 27, N. Y.
(cloth), $6.
Profit Sharing, Savings, and Stock
Purchase Plans—Digest of 20 se¬
lected plans—United
States De¬

partment

of

Labor,

Bureau

of

Labor

Statistics—Superintendent
of Documents, U. S. Government
Printing Office, Washington 25,
D'. C. (paper), 300.
i
Psychological

„'of

T

:

Research

on

Con¬

Behavior:—The Foundation

sumer

for Research

Human

on

Behavior,
Street, Ann
Arbor, Mich, (paper), $2.
1141

East

Across—' Puerto

<

A; series

logical suggestions, easy to follow
and demonstrated by examples on
how to improve business and per¬
sonal relationships — PrenticeHall, Inc., Englewood Cliffs, N. J.

(cloth), $4.95.

,

.

r

Money

(paper), $2.

Criteria for Government Spending
—Chamber

a

.

conducting business,
techniques for planning and
maintaining a productive work¬
endar year 1960—Superintendent
of Documents, U. S. Government load, for streamlining work and
Printing Office, Washington 25, providing for unforeseen emer¬
gencies; for managing a desk,
D. C. (paper), 500.
'
*
learning how to write more let¬
Business Leadership in a Chang¬ ters and
reports and how to read
of

and

costs of a new home
by using pany Institute, 61 Broadway, Newprefabricated parts and doing a York 6, N. Y. (paper). ;: » «
great deal of the simple work, New
Managers—William R. Dill,.
including a discussion of actual Thomas
L; 'Hilton and Walter R.
costs of home ownership, how to
Reitman—A
study of - the vital *
choose a lot, financing, jobs suited
factors
oL managerial
develop¬
to
do-it-yourselfers,
equipment ment,
stressing •/„ individuality in
and materials, etc.—Prentice-Hall,
thought and action in the individ¬
Inc., Englewood Cliffs, N. J., $4.95. ual's
particular setting—PrenticeHow to Get More Done in Less Hall, Inc., Englewood
Cliffs, N. J.

D.
Coope r—A
of Timer-Joseph
ended guide to a more productive working day and -to more efficient

30, 1961, including report on
the Production and Consumption

theory,

the; entire man

Mutual Funds: A Statistical Sum-

the

Annual Report of the Director
the Mint for the fiscal year

of

dealing •
t <
process
from
forecasting ' sales '
through demand, production, cost"
analysis,- government • regulation •
and
capital ' ;• budgeting—Jo h n ?
Wiley & Sons, New York. /

(paper).

Wanted

Thursday, June 14, 1962

plication

•

,

.

with

Price You Can Afford—John L.

Springer—How

pos¬

should,

cal

Humboldt
New

.

Guide for Wages Today — Arthur
R.
Upgren—Bulletin—Macalester

a very

which in any event is sched¬
uled to come not this but next

concerned

"

time when pres¬

fail

taxes

coun¬

very

sible for a large number of
sub¬ taxpayers to omit receipt of
stantial margin to meet out¬ dividends and interest when
lays undertaken by the na¬ making up their tax returns.
tional government, and when Now,
of course, no one is
there is not even a suggestion likely
to have very much
that these outlays are to be sympathy with the individual
.reduced, is strange and un¬ who has been failing to report
realistic to say the least. But important parts of his taxable
this overall action on taxes is income, thus leaving the rest
left vague and is a matter of us to make up the dif¬

board" at

fuel.

recovery

considerable amounts of
This the Administra¬
such taxes as we must now tion is planning to recoup in
pay. To us the sound of a large part at least by "closing
President
promising sizable loopholes" in the existing law
likely to be more of a burden
in the long run even than

need for the

no

try to induce wasteful use of

•

;

istic

Catherine

Rico:

A

New

of

Debt

Concept

and

Real¬

Control—-

Government
for Puerto

Development Bank
Rico, San Juan, P. R.

Quebec—Statistical

Year

Book

for

1961—Department of Industry
and Commerce, Quebec, Canada,
(cloth).
,

How to

Floyd

Relax in

and

Eve

Busy World—
Corbin—A study
a

of the many

facets of our tensionlevees, effects of ten¬
sion on health, personal lives and
productivity, and outline of the
techniques for handling and over¬
coming tension through knowl¬
edge and self-mastery—PrenticeHall, Inc., Englewood Cliffs, N. J.
(cloth), $4.95.

producing

Railroad

Operations

in

1961:

A

Review—Association of American
Railroads,
Bureau / of
Railway
Economics, Transportation Build¬
ing, Washington 6,.D. C. (paper).

.

Railroads—Report .'to, the Presi¬
dent by the Emergency Board in¬
vestigating
dispute
between

Economics of the Electrical Ma¬
improvement of
otherwise would go into the
Akron & Barberton Belt Railroad
chinery Industry—Jules Backman
general business and hence
and other carriers and certain em¬
Treasury in the form of taxes. —New York University Press,
upon the growth rate upon
ployees represented by
11
co¬
Of course,
one
must await Washington Square, New York 3, International Coal Trade
which so much emphasis is
A
operating railway labor organiza¬
N. Y. (cloth), $10.
more detailed information on
monthly inventory of information tions—National Mediation
laid in this day and time.
Board,
V
this plan before passing final Electric Power From the Atom— from U. S. Government foreign Washington, D. C. (paper).
;
Edison
Electric
Institute,
750 service offices, etc.—Bureau of Revenue
A Naive Approach
Act
of
judgment upon it. Certainly Third
1962—Hearings
Avenue,
New
York
17, Mines, U. S. Department of the before the
Committee on Finance
current
regulations tend to N. Y. (paper), 25c.
:
This whole approach has
Interior, Washington 25, D. C.
of- the
U.
S.
Senate—Superin¬
oblige industry to apply de¬ Federal Reserve Chart Book: Fi¬ (paper).
always seemed upside down
tendent of Documents, U. S. Gov¬
preciation charges which are nancial and Business Statistics, Investment Companies, 19 6 2
to us. In the first place the
ernment Printing Office,
Wash¬
22nd edition containing data on
ington 25, D. C. (paper), $1.25.
fact
appears
to be wholly hardly realistic in present cir- May, 1962—Board of Governors of
,

—

—

overlooked that business

men

cumstances. The fact

is,

sound though, as we must once
bases for deciding what part again repeat, that if we make
commitments to spend money,
of
their
funds
should
be

•have

their

own

very

the funds have to

come

from

placed in new and improved
plant and equipment. Avail¬ somewhere, and this business
of promising various forms of
ability of funds for the pur¬
tax reduction
at
the
same
pose
is in current circum¬
stances not

factor

as

much

more

now

a

a

controlling

rule.

What

important

are

time

that

there

is

no

corre¬

sponding effort to curtail ex¬
fac¬ penditures is of very doubtful
are

tors which tend to affect the

profitability of operations in
the future, and the
probabil¬
ity of stability over at least

sort.

Various

other

elements

in

Federal

Reserve

commentaries
tems

in

Florida

sys¬

Orange

Industry — A
study—Continental Can Company,
Third Ave., New York, N. Y.

(paper).

doubtful about jthe

care

foreign countries
by economists, actuaries,
political analysts, physicians, pro¬
fessors of medicine, and states¬
men—Caxton Printers, Ltd., Cald¬
well, Idaho (cloth), $5.50.
seven

Foreign

ever

medical

on

written

633

\

.

\'

Income

Provisions

of

Revenue Bill of 1962 (H.R.10650)
—Report of the Tax Section of the

New

U.

S.

and

Canadian

investment

companies, mutual fund manage¬
ment and distributor companies;
publicly-owned small business in¬

vestment companies; tax-free ex¬
change funds; and 20 foreign in¬
Schoeck, Editor—current vestment
companies incorporated

Helmut

for

than

System,
(600 per

Financing Medical Care: An Ap¬
praisal of Foreign
Programs —

the

President's program call
larger not lower outlays
a
reasonable period of time. for sundry purposes. This fact
Now many of these factors naturally renders one more

particularly those which tend

the

Washington 25, D. C.,
copy) ($6 per year).

York

State

Bar

Association

(paper).

outside the U. S. A. and Canada—

cause

curtailment

of

ment

Administration

such

come

view
with

its
a

were

policies

view to

limitations

as

to

re¬

in

general
removing such

these upon

this is

should

action

needful.
a

should

In

our

power no

have.

A

be¬

Mutual

Funds

Investment
L.

view

President
a

President who has made it

so

clear that

regardless

of hazards?

The

no

need for this

country to stand helplessly by

procedure

posed would in

that "there is

any




now

pro¬

and watch

a

recovery run out

event cost of gas." By the

same

Market

token,

and

Iron

and

States, Common
Soviet

Bloc—Com¬

Secret

of

how

he

achieved his amazing success and
built his vast empire—Albert Z.

Carr—-McGraw-Hill
pany,
New

Book

Com¬

Inc., 330 West 42nd Street,
York 36, N. Y. (cloth), $6.95.

Closed-End

and

Companies

—

Rudolph

Weissman—Harper & Brothers,

Savings
Chart
eral

and

Home

Book—1962

Home

Financing

Edition—Fed¬

Loan

Bank

Board,

Washington, D. C.
Social Progress Trust Fund—First
Annual
Report—Inter-American

(cloth), $4.95.

...

Magic Shortcuts to Executive Suc¬
cess

—

The

techniques

that

can

smooth the path and lead to more

rapid promotion and more impor¬
tant jobs with step by step pro¬
—

Prentice-H

all,

Inc.,
(cloth),

Development
Bank,
808
17th
Street,
N.
W.,
Washington 25,
D. C. (paper).
State

Government

Finances

in

1961—A compendium—U. S. Dept.
of Commerce, Bureau of the Cen¬

Superintendent of Docu¬
ments, U. S. Government Printing
Office,
Washington
25,
D.
C.
sus

—

— D.
Van (paper), 400.
Company, Inc., Prince¬ Strategy of Investing for Higher
Return—Richard
H.
Rush—Dis¬
ton, N. J. (cloth), $10.75.

economic principals

Nostrand

cussion

of

media

for

investment
Management Audit—An Appraisal
Relations, of
other than the stock market or
Management Methods and Per¬
American Iron and Steel Institute,
savings bank—Prentice-Hall, Inc.,
formance—And a study of the use
150 East 42nd Street, New York
of
the
management
audit
for Englewood Cliffs, N; J., $15.
17, N. Y. (paper), 500.
Texas
evaluation of

mittee

fortiori,

he believes in eco¬
private investment in machin¬
nomic
miracles
should
be
ery
and equipment rather
than to conjure up a scheme denied any such emergency
which would, so it hopes, lead powers. The President asserts
to such investment

Steel—United

Trends:

story

49 East 33rd Street, New York 16,

cedures

Trade

The

N. Y.

on

Foreign

Rockefeller's

—

San Juan, P. R.—Special report—
Wiesenberger
&
Com¬
Government Development Bank
pany, 61 Broadway, New York 6,
for Puerto Rico, San
N. Y., $25.
Juan, Puerto
Rico (paper).
Investment Made Easy Through

in¬

much better it would be if the

D.

Weapon

Arthur

proposal that the Congress Foreign Operations—Source of In¬ Englewood Cliffs, N. J.
come—A tax portfolio—Tax Man¬
vestment in machinery and give the President power to
$5.95.
reduce taxes by Administra¬ agement, Inc., Bureau of National Man, Economy and State
(Vol. I)
equipment, are closely related
Affairs, Inc., 1231
24th
Street,
Murray N. Rothbard—A treatise
to governmental policy. How tive procedures if in his judg¬ N.
W., Washington 7, D. C.
to

John

Foreign

on

methods

Freeman,
Articles
the

June

on

1962—Containing formance,

"Let the People Own

Airwaves;"

"Regulation

of

determining

and

per¬

Eastern

potential Corporation

—

Transmission

10-Year

Financial

danger spots and highlighting op¬ and Statistical Summary—Texas
portunities—William P. Leonard Eastern Transmission Corporation,

American
Business;" "Academic —Prentice-Hall, Inc., Englewood Houston, Texas.
Freedom;" etc. — Foundation for Cliffs, N. J. (cloth), $15.
Ultimate Foundation of Economic
Economic Education, Inc., IrvingManagerial Economics: Textbook Science—Ludwig
von
Mises—D...
ton-on-Hudson, N. Y. (paper). 500. and Cases—Erwin E. Nemmers— Van Nostrand
Company, Inc., 120
Friden Communications
Alexander Street,
text
Systems A
integrating
economic
Princeton, N J
and Equipment—36-page
techni¬ theory ,and practical research ap¬ (cloth), $4.50.

Volume 195

Number 6168

-

,

.

The Commercial and Financial Chronicle

.

(2793)

Our

Reporter

on

41

The Security

v

I Like Best
This Week

Continued from page 2

BY

JOHN T. CHIPPENDALE, JR.

Cuban-American Sugar Company,
under the name of the Sugar Cane
Wax Enterprises, is well under tway. It seems significant to quote

■

4

„v

—

.

.

The

demand for short-term Government. obligations
is

the track

be

probably enhanced in some measure by the
money which is''-going
•into; these
the

securities ^because

uncertainty

the

that

^tock

common

overhangs
an

offset, it is reported that the liquidation of near-term Treasury issues
in
order! to
buy common
stocks

slowed ?down
the

after

initial

equity market
sharply.
'' I"-'*.'■

when

GENERAL REINSURANCE CORPORATION
General

Reinsurance Corp. is the head of the
largest American
multiple line group writing fire and casualty reinsurance exclusively. The organization operates throughout the United States

again there will have to
positive action by the

more

rates

considerably

spurt

"

and Canada.

stay on the easy side;
to get somewhat easier as
business - pattern
becomes;

even

the

t h

e

•

1921

to

The intermediate-term Govern- '

ments- continue

funds

with

to, attract

much

of the

bank

Investor

.

AJ

proceeds;

u j

2

t

Caution

H

outlet

from

profit-taking, mainly in taxexempt bonds, going into these
obligations.
The long-term area
of

the

Government

those

other

investors

with

surate

who

the

^rVet

conditions.

to levels

w?th rnStal of .tnese Pr°Pertles (nor has the
unsettled United States Government as yet

.

range

,

_

and

quality.

Influences of

Stock

predictions that are-being ma e
about the economy.
And u
some kind of a pattern is carved

Market

Gyrations
The

out,

financial

markets,

that

the bond and stock

markets

the

are

recent

return

shocks,
what

to

be

price

movements

market also

had

dications

that

There

not

stockSi

common

_As

of-alLfrxed^ jncome
bearing obligations was -in <a€deferisive -vein-: while
the . equity

market

-tions

;

was going

which

nessed
w

•
...

..

XTnTrl"VlPYvn

ham

.

It is evident that the movements

Which

were

going

on

equity

and

bond

markets,,

in both, the
were

Iru? ^U<miitP
nflpnOf hn
Hnltlnn
L ivhW
k
.take time in get answers and soluto
1

Tt

tions

e

th«t

to what will

as

(2)
v

^
.A,v,

The United States Govern¬

ment

preferential tax
treatment of future earnings until
these losses are recovered.

-•

It

is far

come

out

of

sharp decline which has taken
place in prices of common stocks.
However,,-it. appears as though
there are plenty of opinions m the

^

0 r

t h

e r n

•

States

Power

Co.

101.625%

and

accrued

plantations and the Louisiana and

interest to

yield approximately 4.28%.
bonds

were

June 12

on

its bid of

100.91%.

The

new

bonds

as

company

If

.

these forecasts

to

were

come

true, it would seem as though the
and capital markets would
move
very -much
according to
Hoyle, that is, near - term rates
would stay on the firm side so
that the nervous type of money
money

be

would
On

;

to

stay

here,

other

the

expected
;

inclined

hand, it would be
that the capital market
remain

would

still

the

redemption

it has been for quite

some

as

time

on

now.

Business Outlook

Nevertheless, there is

:

be

every effort to increasing
income from domestic production.

b

may

the

CQver

,.g

40

curreRt

dend rate

Com

g

cents

divi.

management

caDable)-expsrieneed

and

the

A

c

North

Dakota

and

South

Da-

a«nL StnlntArl
calculated

tn

kota, including Fargo and Sioux
Falls; and in west central Wisconsin, including Eau Claire and La
Crosse. For the year ended Dec.
31, 1961, over 83% of the system's

operating

derived
operations
and

revenues-

electrical

was

about 16% from gas operations.

Nikko Sees.

A

-

'

A

,

...

.

interest

in

.

the

>

ket.

It

ters

will

is

believed

that
be

the

back

set

in

some

in

a

t

tt

"i-i

^

47

Qft
OO

.

quar-

substantial
way
than
has
been
indicated by most of the opinions
which have been put forward
by
many

Government

prognosticators.
,

the

belief

As

financial

result, it is
that in
the recovery back on

of

order to get

and

this

a

group




operations.

Voar»C In
X t/dJL b

111

in Nikko's

Otlt/t/L

of

New

his

in

a

general

coul¬

headquarters will mission business,
York

office, 1

Chase
Manhattan
Plaza, but he
will also direct and coordinate the

activities

engaging

firm's

California

affiliate, the Nikko Kasai Securities Co., which maintains offices
in
San
Francisco, Los Angeles,
and Beverly Hills.
.

In

addition

who

received

man

V.

.to

Stanley Heller,
early financial
training with. the banking house
of Solomon Bros.* & Hutzler, the
general partners are: Louis Florsheim, Michael J. Pascuma, Nor-

Prince.

*

his

Lind, Jr.,
'

;

and

the

U.

S.

A

a

new

life

reinurance

subsidiary

was

created,

wide trend to

Over the past decade General Reinsurance has
established an
record of growth and
profitability. Premiums written
have increased each
year since 1950 and the

Milton A.

;

excellent

margin has ranged between 1.2% and 6.2%

underwriting profit
that period.

over

During 1961 General Reinsurance recorded a satisfactory in-'
in earnings over those of the
previous year. The company's'
underwriting profit margin rose to 4.6% from 2.5%:

crease

indicated
in

1960

The

and

net

investment

income

continued

its

upward

trend.'*

improvement in underwriting results took place despite siz¬

able

losses

brush

absorbed

fires.

Carla

in

Hurricane: Carla ;land vthe^LoS' Atfgeles

,

The losses sustained-by the
company
Hurricane
exceeded only by those ^incurred in Hurricane Doftna.

were

^

&

in 1960.

Although fire, fidelity,, ocean marine and workmen's com-- ^
pensation results for the year were unsatisfactory, improvement
in automobile
liability, contract bonding, aviation, accident and
sickness, and miscellaneous liability line underwriting permitted
.

the rise in
*

Net

underwriting earnings."

investment

income

portfolio

divided

was

v.

*

9%

increased

before taxes of $6.97 per share.

in

"

;

s

-

1961

to $5 million
At year end the company's invest-,

follows:

tax exempt bonds
35.5%,'
stocks 35.2%, U. S. Government bonds
20.6%, preferred
5.1% and other bonds 3.6%. New investments
as

common

stocks
year

during the

concentrated

were

in

short-term

U, S. Government bonds,
stocks,'while corporate bonds and
preferred stocks were sold on balance. During the year the com-,
pany's capital and surplus funds rose to $70 million, an increase
of $12.8 million, attributable
largely to unrealized appreciation in

municipal bonds and

stock

common

stocks.

726,000 outstanding shares of General Reinsurance
Corp.

traded in the

are

has

had

Over-the-Counter market. To

date

in

1962

the

of $223,-$145 and is currently selling at
$160 bid. At the present price the stock affords a yield of 1.25%
on its annual dividend of
$2 per share that has been paid over the
past three years.
;
Selected

a

range

Statistics

—

Growth

and

Underwriting Results
-Losis &

Expense Ratio-

Premiums
Year

holders'

Loss

Expense

Written'

Surplus

Ratio

Ratio

Ratio

Assets

Combined
^

(Millions)'
'

$126.8

$45,8

$40.8

56.7

40.9

143.3

97.6

49.2

51.2

52.9

41.5

94.4

1959

160.0

59.8

54.1

52.2

41.6

93.8

65.1

57.2

56.9

40.5

97.4

73.2

70.0

53.9

41.5

95.4

1960

_______

174.0
198.3

Adjusted

Net

Total

Invest.

Operating

writing*

Income

Earnings*

Paid

$5.65

$1.82

1959.
1960.

1961.

.__

.__

.__

.__

$4.85

Dividends

2.00

94-

71

87.07

2.00

124-

86

100.12

200-117

119.88

5.57

8.57

1.70

6.40

7.55

4.54

6.97

9.40

2.00

for

equity

in

unearned

'

1.91

premium

reserve.

!

■

Value*

35

43

4.02

Adjusted

'

Liquidating

73-

5.13

6.72

Price

Range
$49-

3.25

,

i

Estimated

Under¬

*

Stanley Heller & Co., 44 Wall St.,
York, members of the New
York Stock Exchange and Ameri¬
can
Stock Exchange observed its
35th anniversary June 13.

and

Mr. Hasebe's
be

throughout

all-line insurance
underwriting. In view of the de¬
velopment costs required in starting a new life insurance
company,
no
profits may be expected for several years.

1958.

New

.

Appoints'Hasebe

recovery
much more

1961

1957_ —$1.74

some con-

business

During

Year

Ot3,]ll6Y Xl6il6F 00.

,

Reinsurance Life Corp., with capital of
$1 million and
surplus of $4 million invested by the parent organization. The
new;
subsidiary will permit the company to participate in the
industry¬

an

;

;

,

addi-;;

business, L

located

are

General

1961

,

markets
;

•

aforementioned

security.

Group.

1958

spec-

Partner of this firm has

.

Reinsurance

opened in Chicago in 1961 and in Atlanta
past January. The other offices are located in Kansas
City
and Los Angeles. Additional
regional offices are planned to pro¬
vide service of a local nature to other
principal sources of business.

1957.

mately 2.5 million in central and

*-V

was

h

n^a

Minnesota, including
Minneapolis and St. Paul; in parts

General

Policy¬

and

money

office

^g

Qicm?
ipE
Jr S wS'

•,

this

ag.

The firm began as a broker-forcapital Nikko Securities Co., Ltd., one of brokers in 1927 with a seat on the
as to how badly the econJapan's
"Big
Four"
securities old New York Curb, several years
omy has been hurt by the severe-houses,
has.• appOipfced:*Terumasa later becoming a member firm of
decline in the common stock marHasebe as head bf^all;, its U. S. the New York Stock Exchange
in

cern

regional

gressive.

southern

from

which ^

part of the

tion, four regional
underwriting and claims

The

f

are

office is located in New York, In
offices which handle acquisition of

common

a

;

the

preserve

The company's home

nominal 18 cents

were

share

to

Bahamas

but reduction from the

1961

re-

street, Minneapolis, the company
and its subsidiary serve an area
having a population of approxi-

of

the

com-

easy

side

to

appears

.handing

for

be

may

option of the

100 %.

so

period.

com-

.

was

ment

The

Headquartered at 15 South Fifth

rapid

to the

per snare> oux, production irom tne
nrTcek'>VanXm?'V from new Fl°rida sugar plantations are
P
y
P
106% to 100%, for sinking fund exPected to boost earnings for
smking fund
m2 tQ
deemed at the

long ago. In addition, the forecasts are now being
made
that .the
business
upturn
will extend over
a
longer time
with the greater part of 1963 now
being included in the recovery

as

not

restore

Proceeds from the sale of the In the fiscal year ending Septembonds win be used to pay part of ; ber
30, 1961, revenue totaled
the i962 expenditures under the $42.66 million as compared to
—$39.28 million in 1960. Earnings
company's construction program.

made on and after Dec 1 1963 at
prices
scaled from
101.74%
to

dieted

will

pany.

The

awarded to the group

upward
the pace will
had been pre-

though

some

underwriting group headed byenchantment with Fidel and his
Halsey, Stuart & Co. Inc., Chi- ; communist dominators into action,
cago,
is offering $15,000,000 Meanwhile, the new Florida

financial^district thatits
the econ- purposes
omy
will
continue
be not

likely that

compensation will be forthcoming
when both the Cuban people and
the United States turn their dis-

a

even

more

An

the

trend

allow

may

through gyra- (Minn.)
first ' mortgage
bonds,Missouri refineries
not heen
twit-43^% series due June 1, 1992, at-some earning power

than 30 years.

more

in

Qfofpc

UI LllC/111 kJ LctlAyQ

-HOW6T Vj?0#s

,market action

•

r V

;

•

in- "

result the

a

The Castro Government
either internally or by in¬

tervention, be overthrown and a
succeeding government could pay
damages.

called

were

(1)

conjecture,

pure

however, these possi-

are,
bilities*

ernment securities.

to

only

There

may,

Governments but also corporate ^nd tax--^,,!,.,
exempt issues were-§old in order
to either protect positions* in equi*.'
ties or to make new commitments ?
in

among

is

assets

should not be unfavorable to Gov-

in the equity
repercussions in

the bond market.

these

be considerable
investors.
This

will

there

caution

normal conditions. The wild

more

■

trying

may

is

after

c0mpensati0n will be received for

1936,;

same name,was established
corporate name. The Mellon Indemnity
merged by General Reinsurance in 1945. In addition to
North Star, two other
wholly-owned subsidaries in Bermuda and

as

The

Surety; Reinsurance Corp. The

was adopted in 1923. Financial control of
the corpo¬
in the hands of The General Alliance
Corp. from 1928 ;
but with the dissolution of the holding company in

order

Corp.

-

tion of any kind has been received
^ Payment f°r the expropriation

in ;

was

1936,

in

l^min^^ban^Am^Sanv''
ell™ln.ale Cuban American s

^n^itinnc "7^"The" vmTnuT* fi na n- Tiade any sPecific ruling on how
wiii no+ be resolved
fbese. losses are to be absorbed
taxw'se).
How. and when any
over night in spite of the glowing

are

commen-

maturity

such

bondlTco^^^
tax^lemnts as' yTeldfgo
S*.

marketis

yield which is

a

obligations

ernment

finding a growing - interest from
public pension funds as well as
seeking

•

York

although another subsidiary with the

Income fq.u^y ln. C u b a n subsidiaries
Gov- J?tahrjg $26,186,600. No compensa-

fixed

bearing

in

New

parent!

Adjustments to the 1960 balance

.

expected that invest.

in

General Reinsurance
emerged with control of North Star Reinsur- ;
ance Corp.
In 1956 the latter company was merged with the

or more so, of their
Cuban properties.

•

as

ration

either partial

was

company was originally incorporated
the .General
Casualty and

present title

f°? 7.'tbe fact that management
^els that there will be at some
indeterminate. time,, a recovery,

will

dropping-so ;more defensive
—:^e.'v
:V:
'•

The

'
-

Premium volume in 1961 reached
$73.2 million.

-

.

of

market. As

;

that the annual report, dated Sept.
30, 1961, said, "Among other adGovernment
and
the
monetary vantages the Florida Enterprise
'authorities.
-V
-*v -1
1
has enabled, your company to
The wav in which this will be ■■
P'°.n its staff some of the able
!done is not being outlined at this
i'n-g P®rsonnel that ^ould be
time bv those who look for a let- n?®dled in, the event of the return
!down jn the economy other than of tb® Cuban properties.'
This, it
ito predict that long-term interest would seem, is an indirect allu-

strong,

Insurance Stocks

—

$70.65
84.80

s

v

42

The Commercial and Financial Chronicle

(2794)

.

ABOUT
In

Enterprise System Survive?

a

Wilhelm Roepke

1933,

brilliant

young

THE
gave

up

economist at the

well

promising

a

career

Germany, and emigrated from his native land as a demonof his total rejection of Naziism. Since 1937 he has
been Professor of Economics at the Graduate Institute of
International Studies in Geneva, Switzerland, where he has
achieved a worldwide reputation as a leading advocate and
expounder of neo-lvberalism. Neo-liberalism is that economic
philosophy which, while stressing the virtues of economic
freedom and the market economy, seeks to avoid the errors
of the laissez-faire capitalism of the 19th and early 20th
centuries (paleo-liberalism). The "newness" of neo-liberalism
consists to a large eoctent in a new appreciation of the positive role of the State in creating the legislative, juridical,
and monetary framework necessary to a viable market economy. Roepke's ideas, translated into action by
his friend
i.Ludwig Erhard, have profoundly influenced the economic
system and economic policies of West Germany and, indeed,
of Western Europe as a whole.

citizens.

free

This

characteristic

again Minister of Economics

fusion of peasant and citizen is

to attempt to refloat the Argentine economy, run aground on

buried deep in the make-up of the
Swiss, particularly the German-

the

Swiss,

and

shoals

of

disorder

financial

so

much so that Switzer-

lanc* *s ^.e ardy country in which
an essentially peasant dialect has
remained, even m an increasingly
industrialized and urbanized solanguage of all classes,
ords which this nation has been This is a fact whichr shows that,
setting with market economy and at bottom, there are no classes in
policies of fiscal and monetary Switzerland. Here is the ultimate
prudence need no emphasis. It is source from which flows most of
only
the
most
underdeveloped what has made possible and concountries
of
Asia
and
Africa tinues to make possible the Swi.s
which
obstinately cling to the system of freedom within., order,
otherwise thoroughly discredited m particular its economic system,
economic

and

planning.
For some time now, Japan has
been Germany's opposite number,
so to speak, in the Far East; and
the extraordinary economic reC-

inflationary

of

system

collectiv-

encount^r,
and a ^ay °.f ^

a

ism and which continue to pursue
what amounts to national social-

eve*1

ist

The

iTiJt

aSain» above a1*?1*1

economic

policies.
Ironically,
it is Western taxpayers who, to a
not
inconsiderable
degree,
are
footing the bills for these costly
u

o

u

Such

u

has

been

Thoro

Qnv

tellectual

wiseacres

riiscredirthp

to

•

the

4.

*

four

o

have

whose

fice

its

resooMiMe for the

were

construction

of

J.yx

nw

surpluses

of pay¬
itself, in
consequence, compelled to mobi¬

'

lize the

the

of

help of its more prudent

neighbors

the.

in

reseue.,

of

its

*

Contrariwise,

currency.

how

proved

France

quickly a; country
as a result of inadequate
monetary and economic discipline
/

r

which,
had

been

brought to the edge of
ruin, can, by restoring

financial
market

economy
and monetary
stability, mobilize the real poten¬

tial

of its economy and lift to a
role
in
the
world
economy
of
which rt hitherto was
thought in¬
,

capable.

If.

we

have

interpreted

lessons

tions

rests

of

on

the

me

very

country

iraai-

and

in

xne urgency oi monetary

is pline.

It

is

equally

disci-

important,

recalled

were

country.

market

'.

/*",

-

in

.

that
:

j

'

- •

_

fYp A

rnpriPQ

nourished by the deepest currents however, to preserve public con- vU. xi-Illfc!I lCd,
0f a practically unchanging way fidence in this economic system w' .
of thinking. These are foundations unshaken and to ensure that the DfibenS
OffPrPfl

'

Principles of the market economy

whole

S°df?a^oval aS^e h^rHivrto
noticed in the geLral Chorus
acclaim

there

nevertheless
need

of

are

of

oueSkms
are^n urgent

which

at this nartirular
at Xhts particular

answers
answers

he learns to fear fire.
*
nresent danger here^is the ten- §rouP offering for public sale
a
necessarily withers away under a
But something else occurred in dency to preach '"dry" arid to "ew is®ue of .$25,000,000 Concollpctiyist economic system
Germany which possibly serves to drink "wet." It should be added 'f'ttL h°r a'A.meric? 4f°%
S"cl\£th? sltuatl0n i? STtze£ ?ompensate for the lack of solidity that one recent and very impres- ,lnk q!7funl^beJt"rest due Junf
Prm^rdy to -ds in the foundations of the con- sive example of the government's
"rone? debentures ar6
Peasant~Jltlzen way of life, this temporary, German economic good faith was the revaluation of Prleed at 1°°% Pius accrued incountry has remamed a paragon of order. The market economy in the D-mark in the face of severe
te^e,st ^
a.frfe econamy and of monetary Germany, differently • than in opposition by some of the most
5f.
ihavei. a
discipline, the one country of all other countries such as Switzer- powerful pressure' groups in the
.su?flcient to retire
others which has most successfully iand where it is the product of country." '
"
$1,000,000 principal amount on
listed the creeping inflation of tradition or is simply something
- •
snmmarv
June 1, m each of the years 1968our time* And Germany?
In the taken for granted, is the outcome
!•'>'?.
Sumlll^ry v.1986, and calculated to retire 76%

Country such as Switzerland, but

he

some

•

,

v -

When non-Germans

ing

Germanv's

are

social

discuss-

markpf

thp
Sn Tiibh
reDeaSrilv atkpri?«•E™
Shl
f

pcnnomv

i

rn

n

wa

tn

an

tneb

+in

-

German case,

it is obviously nec-

«,Qe

tbl SalEr L? make for civic virtue and

rrpqprvp

rniwtivist

nnn

n«d

5

7

u

,

fhic rI ?
^ raC
njypincf
ufr
-C/
ei5
wavefnf thP tw? fn
cal and social Mrppc
JlnV,««
dnp«? it find ^nnnrt? wS?, £
nomic
and
S rSL T
Germanv^annarPntlJ f^nnUnt?
Germany apparently so impotent.
•

+

™

clvlc re"

sponsibility, his recent National
Socialist past clearly shows the
presence of other and profoundly
different elements in the German
make"uP- In sPite of many superficial resemblances between Germans and (German) Swiss, the
mentalities of the two peoples are
in fact very different. The real
reason

of

a

deliberate

and .serious

why Germany, nonetheless,

.

It appears, in summary, that the

at-

to find other explanations, tempt

essary

cnllppt^t ir^iati^fcf For while the German is certainly
unC?
?+nflaJ10mst not lacking in the attributes which

frpnH?

to win popular support for
an economic policy which ran directly counter to the people's tra-

ditions and experiences. This was
accomplished in two ways. First,
the market economy was made the
central concept of a well-thoughtout economic doctrine. The architects of the social market economy
developed—as
the
terminology
itself indicates—a systematic and
comprehensive doctrine which,

cf

the one hand, there is the serious

ories

and

thoughtlessness

„

est

of

unconcerned with

In

tive

comnare^^

to

Switzerland
the

lldfh had Previously with German thor-, understanding

Pprmanv

Swlflprfnnd^£ oughness pursued

For

nelerW

has

strayed from the path

pf

of market
economy

discipline, not

and monetary
when another

even

neutral

country,

cumbed

to

the

Sweden,

suc¬

enticements

of

collectivism and inflationism after
the

war.

all

which

It is Switzerland above

deserves

the

an exactly op-

§oslte P°llcy and, had, saffer®d
S? destruction and degradation in

countrv in

one

title

honor

of
.

belonging to
in the'midst of
tellectual
confusion

consequence,

It could be
for

argued, indeed, that
country such as Germany

to

the

model

of

of

Economicsr him-

which had
economic

•+

i

j

pftim+mr

the

collectivist-inflaUonist

in

mS m

fection is by no l
planation of why

slveden^shrnvs'hJx!!eu1+iam^le
lttle ls
-

neutralitv and
neutrality

posed

to

immune

ex~

-

have

1

prosperity are supmade Switzerland

to leftist economic
ideol¬

ogies, why not Sweden
The real explanation
for
duct

of

the

elsewhere.
product

of

as

the

well?
con¬

Swiss

lies, in fact,
Switzerland
is
the
npncaVTfc

free

P




ants

and

f

-p

fv?

^inal^y» no little Germany's

present economic

sys-

less

of

•

at

' 38

of

freedom

of

markets

and

company

used to expand and modernize the

company's

facilities

for

duction of paperboard.

the

of

:

.

-

integrity of the

be used
opera-

.

Sf'OO'K StlCK

currency

must be today, as ten years ago,
the primary ends of economic
policy. A cause of concern is that
the gap between theory and practice
is
at
present"- noticeably
widening, particularly because the

pro-

The major

competition and the preservation
the

South

Street,
Chicago- " "the
is a leading manufac-

of

Minister

a

c

company

the

it was clearly successful—to provide ever firmer foundations for
tke people's confidence by deeconomic
and
livermg proofs that the economic
even at a time when it stood
the good fortune of Germany and principles being espoused - were
in the world in so doim? and
of the Free World that the decision not mere window dressing but
ridiculed as a kind of mLnm fel1 in favor of the second alterna- rules of action which the governpiece.
tive. The(German market economy ment intends to live up to in good
The mere font
*s' to
exten^» a new proof of faith and with honest impartiality
is a orosnprniic
WL-Gu
tke wel1 kno™ experiential prin- towards all pressure groups. :
soared
bv
twn
which was ciple that things generally have
It is particularly important towas
conseauenflv iPC?
Ai
to get much worse before they can day to make this clear. For if

held

the

in itself is unavoidable, be pre- portion of the funds will
vented from becoming too large, to expand and diversify
This means that the maintenance tions in Brewton, Ala. - r

ffenlrpi in7 alternately, to return to market
rlrofnUv economy, to monetary discipline,
Sw to the free Play of Prices' to the
monetarv
3 law of suPPly and demand. It was

which

maturity,

made and ^ a
great deal 0f.the activity of the
architects of the new policy—the
theoreticians as well as the practipracti
cal men of affairs, in
particular,
was

self [Erhard]—lay and lies in
pushed its destructive teaching, proselytizing, and expolicies to the farthest plaining. Secondly, this appeal to
extreme, there was really nothing reason was accompanied by an
left but to accept 100% collectiv- appeal to conscience, a moral apism
a
la the
Soviet Union or, peal. The effort was made—and
a

to

turer of shipping containers, folding cartons, and other paperboard
products. v: .
:
'
Froceeds from the sale will be

ok.

this

to

Dearborn

became the example par excel- nomic problems, seeks to establish the gap between the theory and
to find thn ricrht
lence °f market economy and of ciear and unambiguous principles, the
practice
of
the • non-inanp^tinn
it i« Srf.«"
monetary discipline is because it Thus, a genuine appeal to people's flationary market economy, which

trving

cost

Headquartered

-

larly important in Germany that

any mere praghoc approach to eco-

prior

.

matic

ad

issue

damage done by petty fault- than 4.40%./ Regular redemption
finders and know-it-alls who at--prices" range from 104.40% imtempt to exploit the short mem-. itially to the principal amount. "
people and to sow seeds of confusion by their carping criticism
of the social market economy as
just so much "neo-liberal" theory,
On the other hand, it is particu-

or

the

threats to the further survival of Until June l; 1967 the debentures
Germany's unique economic sys- will not be redeemable out of
tern arise under two heads. On borrowed funds having an intef-

Comparison With Switzerland
swer to

A

•

dominant

to

-

and finds

which

deeply impressed the Communist

"

balance

into

ments deficits

written

^1-Ch.„arfu.°b.vi0.usl„y..1?0!?

economic edi-

an

v.

recent developments in
Germany
"aright, it is high time that these

siauimy

economy, for self-reliance and lor
self-assertion. From these same
sources
spr!nf' naturally, the
SwIss. respect £°r money and for

theories and the statesmen whose

forUtu^e

zerland—subscribe. This explains
why patterns of lifeand of^ work
have been nrmintamed which ar

Ildlulel1

in

soueht

pcnnnmirfs

majority of Socialists

suited to people of peasant-citizen
origins. With these instincts and

nnaphrnnicmq

policy and to irresponsible
union activity, the United
.States has managed to transform
its once huge balance of payments

before the recent widely-discussed
speech of Ludwig Erhard voicing similar concern. Patrick M.
Boarman, Associate Professor of-tEconomics at - Bucknell
University (Lewisburg, Pa.), has adapted the material from
the original German.
v
<
was

privileged

a

labor

accompanying article, Dr. Roepke expresses his
for the future of the market economy in Germany.

article

remem¬

fiscal

the

concern

ephemeral

as

of the

position in the world economy can
be has been repeatedly shown in
recent
years.
Thanks to a lax

,

,

in the private sector

..." Just how
-

f

In

as

success
economic policy

of

economy are not daily
bered and reapplied.

as

University of Marburg,

stration

once

realm

the

AUTHOR

in

formulae for

original

Will West Germany's Free
Continued from page 5

Thursday, June 14, 1962

.

.

ks\j v v

-

' y

VX-

'

OOHlDlJXGr

-

.

A

new>

convenient

«gtock Stick'' which

pocket-size

instantly and

government and the central bank accurately computes dividend

have been too lax in controlling yields and price-earnings ratios
the advance of creeping ^inflation ig now being introduced on a
set in motion primarily by mfla- nationwide basis to the investing
tionary wage demands.
pubiic.
what is needed,: in this
connection, is a shock to the selfcomplacency and economic indifference
which' is- currently
so
widespread ' in
Germany.
It
is

tic,

obvious

utilization of only one simple set-

even

to

the most obtuse

that Germany is skating

on

thin

ice as far as its international pol-

' A lightweight, precision instrument molded out of durable plas-

"Stock

Stick"

is

said

to

eliminate guesswork and the need
for costly and bulky calculators by

ting—the stock price.

-

The reverse side of the instru-

j

0WinS to the resounding

success
which attended the radical break

wlth

the

Prevaihng

economic

philosophy.
West

gradually fade and in the end disThere are, indeed, no lack
of

Germany's Achilles Heel

be

comparison

overestimated.

with

The

Switzerland

of- points to the Achilles heel

of the

the worlcf economy and the "hard- quarterly dividend rates.
ness" of its currency are menaced,
"Stock Stick" capabilities cover
by external' developments only., a broad range of price, earnings

This is not

so. The threat arises and dividend combinations,
equally from internal developIt is being retailed at $3 a copy
ments and from the ephemeral on a money back guarantee basis,
character of-the same forces to
Full details'on quantities and
to
the
dangers
of collectivism which
Germany
owes
its * un- special imprinting may be oband above all of inflation. Everyexampled economic revival. Noth- tained directly from Stock Stiek
thing must be done, therefore,, to ing is certain here, nothing can be Company at 631 So. Gaylord St.,
keep alive the memory of the dis- relied upon indefinitely where the Denver 9, Colorado.

appear.

The significance of these reflec¬
tions for the present situation can

hardly

tern, it is to^be feared that the
image of the "had time" would

signs

that

the

fast

flowing
sands of time have already done
their work in dulling consciences

Volume 195

Number 6168

.

The Commercial and Financial Chronicle

.

Indications of Current

The

(2795)

following statistical tabulations

latest week

Business

Activity

week

or

or

month ended

steel operations
Equivalent to—

Crude
42

PETROLEUM

oil

and

gallons

Crude

.

(bbls.

2,052,000

at.—

—-

(bbls.)

7,218,060

7,275,560

7,290,011)

8,594,000

58,299,000

30,477.000

,29,562,000

■

at-

7,047,360

Revenue

freight loaded

Revenue

freight received -from connections

NEWS-RECORD:

...12,177,000
5,075,000

,,

191,767,000

197,867,000

26,312,000

'24,502,000

,89,494,000

2,000

41,662,000

95,235,000
44;954,000

'

,39,358,000

Total

Y

U.

S.

Private

•-

Y

construction—

:

V

■

June

„

i

'

>'

",'530,829

State, and municipal-

580,361

Total

—.

-

OUTPUT

Bituminous

$471,100,000

$430,400,000
'215,000,000

239,900,000
206,600,000

215,400,000

33,300,000

36,000,000

and

lignite

EDISON ELECTRIC INSTITUTE:

<

;

IRON AGE

2

INDUSTRIAL)

DUN

—

7,495,000
263,000

♦8,200,000

8,250,000

7,496,000

312,000

310,000

302,000

Y

(E.

J.

2

137

♦147

132

•-

9

15,876,000

15,471,000

15,445,000

Public
7

June

306

280

4

6.196c

6.196c

6.196c

June

4

$66.44

$66.44

$66.44

June

4

$24.50

$24.83

$27.17

Y

;•

310

3491

(St. Louis)

Straits
MOODY'S
U. S.

(New

30.600c
29.920c

Sewer

9.500c

9.500c

9.500c

11.000c

9.300c

9.300c

10.800c

Water

12.000c

12.000c

12.000c

June

11.500c

11.500c

11.500c

24.000c

24.000c

26.000c

115.000C

116.000c

118.625c

112.125c

at

June

DAILY

June 12

89.54

June 12

87.72

-June 12

-'91.91

^

corporate

——June 12

PERMIT

of

87.18

New

Public

Group.

.Industrials
MOODY'S
S.

U.
r

.Group..

91.91

91.91

91.34

Middle

89.92

89.64

89.78

South

BOND

YIELD

87.32

87.18

86.38

East

82.40

82.40

81.90

South

Aaa

84.55

84.68

West

■r'• 89.37

89.09

88.67

88.67

89.78

89.92

88.40

3.74

3.65

3.83

4.58

4.58

.4.58

MOODY'S

COMMODITY

NATIONAL
Orders

—:

4.28

4.28

4,32

New

York

4.42

4.44

4.61

4.62

4.99

4.99

5.03

4.86

4.82

4,82

4.81

Percentage

of

Unfilled

Bituminous

(tons)

of

end

4.46

4.48

4.51

4.51

4.44

4.43

4.42

4.53

364.5

361.7

364.8

369.1

337,569

345,165

399,118

317,081

335,045

342,424

366,982

91

94

98

84

460,264

457,694

504,111

447,581

112.21

■'i

112.68

'

June

2

June

2
2

period

June

2*

June

•

8

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

<

TRANSACTIONS

FOR

ACCOUNT

specialists
purchases

Total

sales

OF

Other

sales

Total
Other

I

2,184,770

3,433,970

35,800

17,600

May 18

323,930

329,090

188,940

556,480

367,290

227,740

574,080

865,119

642,748

1,087,772

191,920

122,510

102,710

104,160

May 18

871,209

753,548

691,358

1,158,136

May 18

1,063,129

876,058

794,068

1,262,296

'

May 18

sales

i_4—

.x

—_—_—„—

.

—

transactions

for

account of

4

828,859
'

May 18

4,178,669

sales

May 18

1,067,320

Other

sales-

4,188,059

2,695,168

1-.

Tin,

560,770

688,820.

3,833,009

3,267,408

2,442,608

V
-

DEALERS

EXCHANGE

Number
Dollar

Odd-lot

dealers

by

of

SPECIALISTS

SECURITIES

—

sales

Odd-lot

AND

N.

ON

EXCHANGE

(customers'

4,900,329

3,956,228

3,003,378

Y.

dealers

long

(per

1,347,860

$127,561,320

$108,669,405

$71,157,663

$131,955,364

-

>

1,834,004
45,953

1,208,106

2,561,919

60,162

13,531

Customers'

other

sales

May 18

1,661,003

1,788,051

1,194,575

2,555,016

May 18

$95,481,176

$103,899,075

$61,593,823

$129,838,352

1

''

(per

long

sales

May 18
May 18

Rour.d-lot purchases

by dealers—Number of shares

ROUND-LOT

EXCHANGE
FOR
Total

STOCK

AND

ACCOUNT

round-lot

(per

ton)——

Total

—

N.

Y.

335,360

All

£82.395

£69.370

£70.072

£82.733

424455

544,490

335,360

101.500c

79.375d

$2.79396

122.138c

;

927,380

591,220

474,640

boxed

(per

$35,000

$35,000

$192,000

$203,000

36.250c

36.250c

36.250c

32.500c

32.500c

32.500c

33.000c

33.C00C

33.000c

24.000c

24.000c

26.000c

22.500c

—

pound)

(per

lb.)

22.500c

23.250c

81.250c

$2.25
$82,000

$1.75000

$1.60000

$1.80000

$1.80000

$1.70000

$1.50000

small lots)
grade (per pound)

$2.25
$82,000

$1.75000

(per pound)—

(per pound, delivered ton lots):

97%

delivered

$1.50000

MANUFACTURING

$1.50000

of

ASSOCIATION,

AprH:
(Number of)—
9,562,451
9,952,445

9,099,881

9,619,974

24,055,398

24,692,077

24,150,105

Implement Tires

(Number

7,837,576

of)—
417,136

408,676

.

362,812

349,096

371,703

359,393

986,469

1,050,862

939,789

2,901,814

Passenger, Motorcycle, Truck and Bus
Inner

>

Tubes

(Number of)—

SERIES

—

U.

S.

1,039,000

May 18
DEPT.

1,467,370

18,725,000

18,091,230

12,165,080

24,627,470

May 18

NEW

3,582,008
4,009,395
8,713,564

9,095,617

39,472,000

36,862,000

39,506,000

38,499,000

36,423,000

37,955,000

16,156,000

17,187,000

15,572,000

1.352,868

3,239,661

20,192,370

19,130,230

12,880,730

Tread

25,445,020

715,650

>

817,550

—

Production

Inventory
Truck

and

June

100.1

100.1

100.4

(pounds)

—

(pounds)

—:

,

(pounds)

Bus

Tires

(Number of)—

*95.6

96.8

Not avail.

June

99.7

99.6

♦Revised figure.

99.9

Not avail.

June

92.7

92.2

93.6

Not avail

96%

.June

Y—

other

than

farm

and

foods

tNumber of orders
at




centers

not

where

reported

freight

since

100.8

100.8

100.9

Not avail.

end

from

introduction

East

St.

Louis

of

Monthly Investment Plan.

exceeds

one-half

cent

i

a

pound.

iPrime Western

Zinc

1,132.555

1,286,512

'tEstimated totals based

on

1,325,422

1,022,408

3,782,552

Production

Not avail.

94.9

2.939,288

(Camelbacic)—

Rubber

Shipments

OF

__June

basis

74.000c

$2.25

$82,000

pound)

(per

Shipments

650,530

May 18

———

r__

figure.

110.108c

$35,000

3,831,219

3.883,094

reports from companies accounting for

'

—

91.375c

84.401d

$2.81399

$192,000

8~13~570

(1957-59=100):

commodities

12.000c

3,413,331

products

♦Revised
on

12.000c

10,238,101

of primary, 95% of secondary tin consumption in 1957 and 97% of
1957.
tIDomestic five tons or more but less than carload lot boxed.

of

where

sold

11.500c

.

80.739c

(.per

(SHARES):

Processed foods
Meats

11.500c

-

£69.428

117.273c

Straits
U,. S. price)
flask of 76 pounds)

ounce

Inventory

813,570

STOCK

commodities

Farm

£67.881

84.375d

Commodity Group—
All

£60.132

101.500c

TRANSACTIONS

„—-

PRICES,

10.800c

£66.645

1,326,928

STOCK

;

—

sales

LABOR

THE

11.000c

9.300c

£60.470

8,793,762

MEMBERS

__

sales

WHOLESALE

ON

9.500c

£59.818

$2.81213

sales—

Short sales
Other

SALES

ROUND-LOT

OF

544,490

£243.517

12.000c

Production

May 18

'

TOTAL

424,155
"

29,505c

£233.355

11.500c

Production

May 18

—

29,985c

£242.409

£68.440

ton)

York, boxed (per pound)
bulk (per pound)—

Tractor

sales

30.600c

28,598c
£234.309

:' "Y

Passenger & Motorcycle Tires

by dealers—

shares—Total

of

1,4*7,000

£59.082

6,903

Other

34,827,000

9.300c

pound)——"
delivery (per pound)

months

INC.—Month

1,721,165

Short sales

34,100,000
1,254,000

9.500C

—

(per

York

(per

RUBBER

sales)—
May 18

Number

$548,180,850

2,435,224

«May 18

sales

$625,002,571

£232.239

ton)

(Per pound,

1,850,019

sales

Round-lot

167,345,165

$594,406,311

30.600c

York (per ounce)
(per ounce)
Exchange
(check)

New

Cobalt,

2,264,698

short

value_

$715,526,015

28,404,066

28,545c

New

Cadmium

Customers'

Dollar

$653,406,637

£234.190

»

ton)

99%, grade ingot weighted avge.
99% grade primary pig export

COMMISSION

total sales

long

♦♦Nickel

purchases)—t

(customers'

26,482,129
135,395,869

QUOTATIONS)—

(per pound)
(per pound)

(per

Platinum, refined

May 18

by

M. J

London

Bismuth

May 18

of orders—customers'

47,298,033

41,467,264
171,709,583

Aluminum—

STOCK

shares

purchases

104,298,311

1,348,000

Laredo,

5,717,846

value

Number

.

109,460,860

136,542,652
38,019,081

Month

tons)

long
Sterling Exchange—

and

UNew

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

108,290,835

Antimony—

4,986,936

—May 18

-

MINES)

(net

London

three

Quicksilver

5,446,332
730,910

May 18

sales

&

prompt

Laredo,

purchases

Total

(E.

Western,

Sterling

members—

Short

V

OF

;

lignite (net tons)

anthracite

Louis

St.

Silver,
Silver,

Gold

.—May 18
May 18

——_—

sales—

round-lot

403,230

the floor—

on

—

3,881,470

Silver

—

;

■

40,751,128

37,140,000

City

refinery

ttLondon,
ttLondon,

567,530

38,200

initiated

and

"

East

3,272,320

79,300

Other

Total

2,637,870

floor—•,

sales—

York

New

months,

§§Prime

609,150

May 18

purchases

Total

422,260

224,430

the

sales——

Total

528,110

380,330

Short
:

796,100

2,712,880

off

108,960,258

-

135,050,041

Common, New York (per pound)
Common, East St. Louis (per pound)
ttLondon, prompt (per long ton)
■;
ttThree months, London (per long ton)

3,791,030

334,670

Other transactions
Total

1,827,990

sales

Other
Total

2,942,610

May 18

initiated

56,472,688

$646,624,321

Zinc—

3,015,140

sales—

1

purchases

Short

H<

$32,596,542

219,243,143 >

66,753,487

57,194,660

-

(BUREAU

PRICES

ttThree

113.65

May 18
May 18

—

—.

transactions

Total

$34,151,047
t

Lead—

113.43

1,562,310
1,984,570

sales.

CITIES—Month

52,158,010

Export refinery
ttLondon, prompt

300,899I

May 18

;

31

&

May:

,

May 18

-

—

DUN

—

,

coal

Domestic

MEM-

—

1

—

115

*33

100,813,700

-

in stocks in which registered—

,

Short

♦112

34

Copper—

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS

Transactions of

(

METAL

T

AVERAGES 00

ROUND-LOT

56

123
'

of May:

!

*

!

-June

at

79
58

35

115,231,203
55,094,237

Pennsylvania

—

activity

orders

137

88

*56

43

-

COAL OUTPUT

4.(

ASSOCIATION:
.

INC.—217

outside

Total

5.01

June 12

.

*144

92

City

4.61

June 12

—

(tons)

435

36,498,090

June 12

INDEX

(tons)

127

*339

152

;

4.43

|

'

June 12

PAPERBOARD

received

Production

52

*103

60

—.

June 12

Group
Group
—

systems

Central

4.43

Utilities

31
58

: /.•

111

4.62

4.28

—

Group

Industrials

*58

Total United States

'

3.73

(

june 12

—

Public

*54

53

* Y
june 12

—

Baa1

•.

58

buildings

$37,782,132

June 12

A

254

*34

VALUATION

Pacific

—

'Railroad

•

45

♦245

Mountain

89.64

{

—

V

35

Central

-June 12
-June 12 '*

•!

June 12

—

440

.

Central

84.55

84.04

:v..;

DAILY AVERAGES:

Bonds—

corporate

70

*424

431

;

*33

Atlantic:

82.15

:

;

-

1,411

*83

•

Atlantic

87.32

:

.:

—.

—%

24

♦1,273

.

April:

June 12

—

__.

Group———:

Government

Average

—:

-

Utilities

87

380

80

England

June 12

Railroad

♦81

352

-'-fiP

87.94

87.72

——-June 12
r

467

51

is

service

90.17

'

*433

21

:

87.72

l"\ 89.78

136

85

—

89.42

•

20

*107

437

water

BRADSTREET,

Government Bonds

Average

BUILDING

AVERAGES:

19

385

enterprises
Conservation and development
All
other
public

11.500c

24.000c

59

75

service

Sewer

9.300c

——June

at—

63

62

Military facilities
Highways

at

44

72

170

->,Y-

1,411

and

30.600c

Public

45

75

127

nonresidential

June

York)

47

193
253

.

247

28.650c

12.000c

73

38

30.600c

June

268

77

____

institutional

Administrative

and

363

161

282

construction

28.525c

••

1

187

185

470

June

BOND PRICES

348

198

utilities

30.600c

at.

(primary pig, 99.5% )

tin

226

recreational

28.625c

tZinc

Aluminum

223

21

and

June

refinery at
refinery at
Lead (New York) at
Export

(delivered) at
Zinc (East St. Louis)

842

229
383

-

.June

Domestic

98

839

nonresidential buildings

Other

619

894

Hospital and institutional

QUOTATIONS):

1,265

96

~~

I

Educational

$37.83

'

I—III

—

Industrial

$66.44

•.

3,442
11,973

•*487

102,

■;

buildings
Nonresdiential buildings

6.196c

4,853
-

*1,931.

659

:

Residential

f

?

♦3,328
♦1,348

Telephone and telegraph
Y Other public utilities
All other private

15,004,000

;

♦4,601
'*•'

"

1,524

construction

Public

161

Electrolytic copper—

Lead

2.285

Miscellaneous

PRICES:

M.

&

5,208

~

,

alterations—-

213,054,

;

»

3,797

(monfarm)

73,632

79,599

144,600,

,

,

;

Social and

£

steel

PRICES

and

OF

-

1——

Religious

Farm

—June

(per lb.)
Pig iron (per gross ton)
Scrap steel (per gross ton)
METAL

Other

-

243,400,000
119,500,000

■

June

INC

COMPOSITE

Finished

-

construction

83,833
77,919

82,286

.45,340

Office buildings and warehouses
Stores, restaurants, and garages

.

output (in 000 kwh.)

BRADSTREET,

83,026
_

construction^

Hospital

2

June

AND

of

-

Commercial

STORE SALES

(COMMERCIAL

5,133,470

,

June

INDEX—FEDERAL RESERVE
SYSTEM—1947-49 AVERAGE=100„
June

FAILURES

7,584,687

7,698,811

Educational

(tons)—

Pennsylvania anthracite (tons).

Electric

10,583,943

of

(tons

(tons)——]

period

buildings
housing units

:299; loo.ooo
362,900,000

179,400,000

grades

Nonhousekeeping
Nonresidential buildings
„'Industrial

$662,000,000

231,200,000

151,000,000

INC.—Month

all

——_

of

Additions

v.-

471,729

.

output

Residential

(U. S. BUREAU OF MINES):

coal

DEPARTMENT

524,490

187,300,000

:

June

-

new

Private

'.'V 531,705

587,409

502,219

.479,171,

36,300,000
COAL

"

$486,600,000

June
-June

i——„_.i—

end

New

299,300,000

'

construction

'.Public, construction——„——

v

at

.

,—June
(no. of cars)—June

9,229,000
6,783,398

BUILDING CONSTRUCTION-U. S. DEPT.
LABOR—Month of May (in millions):
:*

.4,

cars).—.

Ago

(net tons)—
,

smelter

pounds)

Stocks

27,798,000

99,118,000
40,486,000

Year

Month

May:

195,958,000

26,728,000

102,545,000

Previous

produced

Shipments,(tons of 2,000 pounds)

2,456,000

5,044,000

192,032,000

>

April

AMERICAN ZINC INSTITUTE

CONSTRUCTION—ENGINEERING
v !

<

castings
April

12,474,000
•8,524,000

2,888,000

13,075,000

5,103,000

,

.

for
of

Slab zinc

2,497,000

of that date:

are as

INSTITUTE—

8,360,000

r

ASSOCIATION OF AMERICAN RAILROADSi

CIVIL ENGINEERING

and steel

tons)—Month

j

29,060,000
2,197,000

13,420,000

-June

of

STEEL

«,094,000

June
,

(number

Ingots

(net

AND

28,511,000

June

—.

at

(bbls.)

IRON

Month of

—June

r„

Residual fuel oil

1,765,000

of

runs

(bbls.)
Distillate fuel oil

1,586,000

AMERICAN

Shipments of steel products

output—daily average

of quotations,

cases

Month
70.0

INSTITUTE:

each)

in

or,

Latest

60.5

1,580,000

June

date,

Ago

54.5

Steel

condensate

Kerosene
.

Ago

54.0

.

to stills—daily
average (bbls.)
June
output (bbls.)
-June
Kerosene output (bbls.)
June
{..Distillate fuel oil output' (bbls.)
.June
Residual fuel oil output
:(bbls.)■———4-Y—
—June
Stocks at refineries, bulk terminals, in
transit, in pipe lines—
Yv
'
Finished gasoline (bbls.) at— ———————June

*

Week

that

on

Year

June

Gasoline

:

Month

Week

(per cent capacity)

SteeTingots and castings (net tons)
AMERICAN

Previous

STEEL INSTITUTE:

Indicated

cover production and other
figures for the
Dates shown in first column are either for the

month available.

Latest
AMERICAN IRON AND

43

included,

total stocks

^Delivered

Louis excceeds 0.5c
**F o.b. Fort Colburn, U S. duty
ttAverage of daily mean and bid and ask quotations per long ton at morning

freight

from

East

St.

session of London Metal Exchange.

44

The Commercial and Financial Chronicle

,(2726)

SINCE

in

•

number of issues
SEC, it is becoming
increasingly difficult to predict- offering datep •
with a high degree of accuracy. The dates shown* . /
in the index and in the accompanying detailed \
items reflect the expectations of the underwriter
but are not, in general, to be considered as firm
NOTE

Because of the large

—

offering dates,

7

.

'

-

Advance Mortgage Corp.
V
\
April 27, 1962 filed 200,000 common/Price—By amend-1
ment. Business—The making and servicing of real estate
first mortgage loans.
Proceeds—For debt repayment.
—Shields & Co., N.
••

L.

A.

Steel

S.

Corp.

ness—Sale of processed flat rolled

strip steel.

Proceeds

repayment, equipment, and working capital.
Office—126—02 Northern Blvd., Corona, N .Y. Under¬
writer—Bernard L. Madoff, N. Y; Offering—In July.

—For debt

Instrument Co. Inc.

Accurate

Price—$2.50.

April 24, 1962 ("Reg. A") 80,000 common.

•

Accurate

Packaging Corp.

■

*/y-

28, 1962 filed 80,000 common. Price—By- amend¬
(max. $3). Business—Design and manufacture of
folding paperboard cartons; Proceeds—For debt repayFeb.

ment.

-

,

ment, advertising and other corporate purposes. Office
—651
Third St., Newark, N. J.
Underwriter—Baruch

Inc., N. Y. Note—This registration is being

& Co.,

Bros.

withdrawn.
Inc.

Parts

Accurate

J////////.//'/''
amend¬
sale of

.

March 30, 1962 filed 100,000 common. Price — By
ment (max. $13). Business — Rebuilding and
starter

drive

selling

stockholders.

automobiles. Proceeds

devices for

Office—1313

Underwriters—McDonnell

Ind.

&

S.

Jay St.,
N.

Co.,

Y.

—

•

For

Kokomo,
and Raf-

'//;/•;./'

fensperger, Hughes & Co., Indianapolis.

Adelphi Research & Mfg. Co.
22,

("Reg. A")

1962

blue

print paper. Proceeds—For debt repayment,
expansion & working capital. Office—3745 N. 2nd St.,
Philadelphia. Underwriter—Fred F.-Sessley., & Co., Inc.,

and

New York.-Note—This
•

Admiral

pffering

Automotive

was

withdrawn.

4„;-

Inc. (7/2-6)
Jan. 11, 1962 filed 100,000 common. Price—$4. Business
■—A warehouse distributor of automobile equipment ac¬
Products,

cessories

and supplies. Proceeds — For expansion and
working capital. Office—3294 Steinway St., Astoria, N. Y,

Underwriter—Baruch Brothers

&

Co., Inc., N. Y.

-

-

Admiral Benbow

no*"

Master Corp.
1961 filed 200,000

Air

order

of

Business

—

The

windows

a

semi-annual magazine and stamp collec-'

working
Underwriter—
Co., N. Y. Offering—Indefinitely postponed.

Bache &

All-Star

Ave.,

Fifth

Office—551

Insurance

N.

Y.

Corp.-/;

Mar. 30, 1962 filed 1,000,000 common.

Price—$3. Business

—insuring of buildings against fire, lightning and other

capital. Office—3882
Ave., Milwaukee. Underwriter—None.

Teutonia
•

N.

Proceeds—For working

perils.

'All-State'

Properties,-.4Inc.^--'<?•••/• <;>• ;•

1962 filed $5,000,000 of conv. subord. deben¬
1977. Price—At par. Business—Company and
subsidiaries conduct a general real estate business with
emphasis on land development and home construction
in Fla., Md., N. Y., and Ky. Proceeds—For repayment
of debt. Office—230 Park Ave., N. Y. Underwriters—

April 24,
tures

due

Bear, Stearns & Co., and Allen & Co., N. Y. Offering—•
Sometime
•

in

July.

/,

'■/" V".'

...

:

i

-

'

4

v

,

(6/25-29)
~
March 28, r1962 ("Reg. A") 100,000 class A common.
Price
$3. Business — Wholesaling and distributing of
electronic parts, kits, components, etc. Proceeds — For
inventory and working capital. Office—2520 N. Broad St.,
Philadelphia. Underwriters—Albert Teller .& Co., Inc.,
and H. A. Riecke & Co., Inc., Philadelphia.;
ASsco

Electronics, Inc.

—

class A

manufacture

firms),

capital.

common

are to be offered for public
sale by the company and 150,000 outstanding shares by
the present holders thereof.
Price—To be supplied by

storm

stockholder.

amendment. Business—Publication of mass
catalogues (for department stores and mail

torsr books. Proceeds—For debt repayment and

stock, of which 50,000 shares

amendment.

.

V
of which 60,000 will

Graphic Arts, inc.

circulation

■■.;*/': '/"■V.
shares

Allied

Price—By

Aerosystems Technology Corp. .
'
April 11, 1962 filed 165,000 common. Price—$3. Business,
—Development, manufacture and marketing of certain"
proprietary products and defense contracting. Proceeds
—For new products,
inventoryand working capital.
Address—Route. 15, Sparta,-N. J.
Underwriter—Chase
Securities Corp., N. Y.
May 26,

-

Mar. 27, 1962 filed 180,000 common,
be sold for the company and 120,000 for a

V

1962

28,

aluminum

53,300 common. Price—$3.75.
Business—Manufacture and distribution of diazo, brown,
Mar.

r'-

Aerodyne Controls Corp.
Jan. 29, 1962
("Reg. A") 90,000 common. Price—$2.
Business—Design, manufacture and sale of systems, con¬
trols and assemblies for the missile, rockets and aircraft
industries.
Proceeds—For equipment, debt repayment,
expansion and working capital. Office—90 Gazza Blvd.,.
Farmingdale, N. Y.
Underwriter—Robbins, Clark &
Co., N. Y.
'

test

electronic

~

•

instruments'
and
component parts.
Proceeds—For new products,
debt repayment and other corporate purposes.
Office—
2435 White Plains Rd., N. Y.
Underwriter—Paisley &
Co., Inc., 120 Broadway, N. Y.
of

Business—Manufacture

" '

:

-

•.

("Reg. A") 100,000 common. Price—$3. *
Business—Application of electronic and air photography
developments in the field of geodetic surveying and re¬
gional mapping. Proceeds—For debt repayment, equip¬
ment
and
working capital.
Office—2412 S. Garfield
Ave., Monterey Park, Calif. Underwriter—Pacific. Coast
Securities Co., San Francisco. Offering—In early July.
May

b

100,000 common. Price—$4.50. Busi¬

March 29, 1962 filed

\

Y.':"...

Aerial Control Geotronics

1

REVISED

ITEMS

.

Office—First National Bank Bldg., Detroit. Underwriter '

»

Jfr

ISSUE

June

working capital. Office—Statler Bldg., Park Sq., Boston.
Underwriter—Paisley & Co., Inc., 120 Broadway, N. Y.
'Offering—Expected in late August^
.

ADDITIONS

PREVIOUS

^ Allied Entertainment Corp. of America, Inc.
11, 1962 ("Reg. A") 60,000 common. Price—$2.50.
Business—Music publishing, recording, selling and dis¬
tributing phonograph records; managing of recording
artists under contract; and * the development ' and4 pro1*
duction ®f jingles for TV and radio, Proceeds—For debt
repayment,, expansion, sales promotion and; working
capital.
Office—1697 Broadway, N. Y. Underwriter—
Reuben Rose & Co., N. Y." >
'
/V

service.

awaiting processing by the

.

* INDICATES

••v

Business—A general advertising and technical publishing
Proceeds — For salaries, sales promotion and

Thursday, June 14, X962

..

%

and

sale

•

of

Alumairon

International,

(6/18-22)

Inc.

Nov.

gheny Avenue, Philadelphia, Pa. Underwriter—Francis I.

13, 1961 filed 80,000 common. Price—$5. Business
plans to construct special type homes, and
engage in the general contracting business. . Proceeds—
For general .CQrpprate .pqhppses, Office—St. Petersburg,

du

Fla. Underwriters—B.. C.

minum

products.

and

doors,

offering has been in¬
1

definitely postponed.
Reduction

Co., Inc.
April 27, 1962 filed $44,546,300 of
tures

due

holders

shares

1987

to

the

on

held.

alu¬

be

basis

offered
of

Price—By

—Company

working capital, and
Office—20th Street, and Alle¬

Pont & Co.r N..Y. Note—This

Air

other

Proceeds—For

other corporate purposes.

•

and

,

Malloy, Inc., and Hensberry &
Co., St. Petersburg; J. Morton & Co., Inc., Sarasota, Fla.

-

Amerel

;///•/•
conv.

subord.

July

deben¬

for

31,

Mining Co. Ltd.

filed

1961

*/■-

--

400,000

shares. Price—50

Common

subscription by stock¬
$100 of debentures for each ^10

cents. Business—The company

amendment.

ing, construction, exploration and general corporate ex¬
penses.. Office—80 Richmond St., W., Toronto.
Under¬

is engaged in exploration,

development and mining.-; Proceeds—For diamond drill¬

Business—Produc¬

tion of oxygen, acetylene and other
gases, welding tools
and related equipment. Proceeds—For debt

writer—E.

repayment
expansion. Office—150 E. 42nd St., New York. Un¬
derwriters
Kidder, Peabody & Co. and Dean Witter

A.

Manning, Ltd., Toronto.

'

and

Inn, Inc.
March 23, 1962 filed 101,578 common to be offered for
subscription by stockholders on a l-for-5 basis. Price—
By amendment (max. $18).
Business—Operation of a

&

Co., N. Y. Offering—Indefinitely postponed.

Dec. 15, 1961 filed 150,000 common. Price — By amend¬
ment. Business—Manufacture of standard and special in¬

•

Air-Tech

dustrial

chain

Mar.

of restaurants and

expansion,
S.

a

motor

hotel.

Proceeds—For

debt repayment and equipment. Office—29
Blvd., Memphis.
Underwriter—James N.

Bellevue

Reddoch

&

Admiral

Co., Memphis.
Business

„

'

;

4

1

"•

Systems,

Inc.
Feb. 28, 1962 filed 70,000 common. Price—$3.
Business
—Designs and produces printed business forms. Proceeds
—For

additional

sales

personnel, moving expenses and
Office—233 W. 42nd St., N. Y.
Underwriter—Fabrikant Securities Corp., N. Y. Offer¬

other corporate purposes.

ing—Expected in July.

—

23,

Industries, Inc. 4 * *
("Reg. A") 73,500

1962

common.

American

27, 1961

("Reg. A")

common.

Nov.

17,

250,000

tion

TOUR PRIME SOURCE FOR

Price — $5.75.
Proceeds—For construc¬
Office—614 Equitable Bldg.,
common.

Underwriters—Reynolds

Allegheny Aluminum industries, InCr
common.

^

Price—$4.25.

BOUGHT

-

SOLD

-

QUOTED

for Banks, Brokers, Institutions

aluminum

doors.
and

Proceeds

combination
For

Office—1000
K-Pac
•

\

Dlgby 4-2370

Broadway, New York 6, N. Y.
TWX: N.Y. 1-5237

Direct Wire

to

HOLTON, HENDERSON & CO., Los Angeles




Underwriter—

v,

and sale of
Of¬

Business—Transportation, distribution

Proceeds—For debt repayment and expansion.

•

American

Underwriter—Crutten-

Laboratories,: Inc.

(6/25-29)

-

^

and

*

28, 1962 filed 200,000 common. Price—By amend(max. $6).- Business—Operation- of hospitals and medical
laboratories. Proceeds—For-debt repayment and work¬
ing

Office—660

capital.

S.

Bonnie

Brae,

Los

Angeles.

Underwriter—California Investors, Los Angeles.

—

Underwriter—Suplee, Yeatman, Mosley Co., Inc.,

Philadelphia.
Allied Doll &
Feb.

c

(6/25-29)

S. 24th Ave., Omaha.
den, Podesta & Miller, Chicago.

an

312,500 common. Price—By amendment ($8
max. for common). Business
Manufacturing and dis¬
tributing Pepsi Cola and Pepsi Cola syrup; Proceeds—
For an acquisition. Office—1601
Guilford Ave., Balti¬

more.

39

American Gas Co.

J.

Feb.

rants)

*ioo„
jfinc.

N.

Ave., Clifton,
Corp., N. Y.

fice—546

,

Members of New York Security Dealers Association

Main

Securities

gas.

purposes.

Allegheny Pepsi-Cola Bottling Cow (6/2R-29>
March 5,
1962 filed $1,250,000 of 6% %: subordinated!
sinking fund debentures due 1977 (with attached war¬

Established 1942,

;;

of New Jersey

$5).

and

•

S$.

St., Indianapolis.
N. Y., and Crut-

26, 1962 filed 548,532 common to be offered for
subscription by stockholders, on .the basis of 3.6 new
shares for each share held/ Price—By amendment (max.

Busi¬

windows

Inc.,

March

acquisition, debt repayment
Office—5007 Lytle St., '
Underwriter—First Madisom Corp.^ N. Y.
—

general corporate

Pittsburgh, Pa.

storm-screen

Market

Co.,

May 1, 1962 filed 100,000 common. Price—$3.25. Busi¬
ness—Production of flags, banners and accessories. Pro¬
ceeds—For taxes, debt repayment and working capital.

ness—Manufacture of aluminum and fiberglass awnings
and

E.

&

American Flag & Banner Co.

Corp. (7/9-13)
March 23, 1962 filed 50,000 common. Price—By amend¬
ment
(max. $6).
Business—Manufacture
of specialty
chemical products. Proceeds—For general corporate
pur¬
poses.
Office—3440 Fairfield Rd., Baltimore.
Under¬
writer—Robert Garrett & Sons, Baltimore.

1961 filed 100,000

.

tenden, Podesta & Miller,-.Chicago. *.? ~V

Alcolac Chemical

Dec. 21.

.

.

Corp./.

Fidelity

Office—423

investment.

working capital.
Portland, Ore. Underwriter—Dempsey-Tegeler & Co.,
Inc., St.-Louis. Note—This registration was temporarily
postponed.

//

Packaging Corp.

June 4, 1962 filed 500,000 common. Price—$11. Business
—A small business investment company. Proceeds—For

company.

and

&

/

N. Y., and Hallowell, Sulzberger, Jenks, Kirkland & Co.,
Philadelphia.
American

filed

Cardboard

Office—1101 W. Cambria St., Philadelphia. Underwriters
—Milton D. Blauner & Co., Inc., M. L. Lee & Co., Inc.,

Pacific Lumber Co.

1961

Proceeds—For

Proceeds—For general corporate purposes.

boards, etc.

Price—$2.50.

Imminent.

Business—A lumber

fasteners.

missile

(6/29)

Jan. 5, 1962 filed 150,000 common. Price—$3.50. Business
and
sale
of
cardboard boxes,
display

Business—Distributor of pens and other advertising ma¬
terial. Proceeds — For
working capital. Office — 11608

Alaska

Mfg. Corp.

—Manufacture

Ventura Blvd., Studio City, Calif. Underwriter—Pacific
Securities Co., San Francisco, Calif.
Offering-

100,000 common. Price—$1.15.

and

(6/25-29)

A!an-Randal
Oct.

aircraft

Screw

&

repayment, equipment and other corporate pur¬
poses. Office—Lawson Blvd., Oceanside, L. I., N. Y. Un¬
derwriter—S. D. Fuller & Co., N. Y.

Business—Manufacture and distribution of a variety of
air-supported structures, radar antennae, and solar re¬
flectors. Proceeds—For expansion and working capital.
Office—30 Garden St., New Rochelle. N. Y. Underwriter
—Fred F. Sessler & Co.,
Inc., N. Y. Offering—Postponed.

Co., Inc.
("Reg. A") 120,000

Bolt

debt

Price —$3.

Coast

Adtek, Inc.

May 21, 1962

American

Toy Corp.
27, 1962 filed 133,333 common. Price—$3. Business

American

Nov. 27, 1961

Manufacturing €orp*u%

filed 200,000 common.

ness—Manufacture
home.

working capital.

—Manufacture

Park, Fla.
•

:

a

Price—$2.50.

Busi¬

type of component constructed

debt

repayment, equipment, and
Office—4950 71st Ave., North, Pinellas

Underwriter—Equity Securities Co., N. Y.

American

Feb. 8,

of

Proceeds—For

ment,

and sale of dolls. Proceeds—For equip¬
advertising, and working capital. Office — 4116
First Ave., Brooklyn, N. Y. Underwriter — Theodore
Arrin & Co., Inc., N. Y. Offering—In
July.
r"

Modular

(6/18-22)

Mortgage Investors

(7/2-6)

,

1962 filed 1,300,000 shares of beneficial interest.
Price—$15. Business — A newly-formed business trust

vYolume 195

Number 6168

,

,

The Commercial and Financial Chronicle

.

(2797)
which plans to invest, in first
mortgages. Proceeds—For
investment. Office—305 S. County
Rd., Palm Beach, Fla..

Underwriter—Hayden, Stone & Co., N. Y. Note—This

Ave., Chicago.
formerly named American First Mortgage-, Co., Chicago.

company was

Investors.

•

American

Options Corp.
11, 1962 ("Reg. A") 60,000 common. Price—$5.
Business—Company plans to sell "puts and calls" and
may act as a broker-dealer. Proceeds—For general cor¬
porate purposes. Office-—120 Broadway, N. Y. Under¬
writer—Provost Securities, Inc., N. Y.
April

American
Jan.

24,

Phoenix

Corp.

1962 filed 315,000 class A

shares.

American

tures

30,
due

218,000

Plan

1962
1982

will

Corp.

(6/18-22)

1

'

filed

$2,480,000 of convertible deben¬
248,000 common shares (of which
sold for the company and 30,000 for

and

be

warrants

Stearns

&

Safety Table Co., Inc.
^
May 23, 1962 filed $100,000 common. Price—By amend¬
ment
(max. $7).. Business—Design, manufacture and
marketing of equipment used in the sewing industry.
Proceeds—For

expansion, debt repayment and working
Address—Mohnton, Pa. Underwriter—Reuben

Rose &

Co., Inc., N. Y.

12, 1962 filed 1,000,000

common.

Ferry, N. J. Underwriter—Gianis
•

Artlin

&

Co., Inc., Dallas.

American

March

States

Life

Insurance

Co.

1962 filed 300,000 common being offered to
stockholders, and those of parent, American States Insur¬
ance

Co. of record June

2, with rights to expire July 5,
remaining shares will then be offered to the
Price—$4.25 ($4.50 to the public). Business—
Writing of ordinary and group life insurance. Proceeds
—For general corporate
bhiJ]jdses:JOffldfe,-2-532 N. Meri¬
dian St., Indianapolis.-Underwriter —
City Securities
Corp., Indianapolis. J "
y
'
1962.

The

public.

&

•

purchase of addi¬

Industrial

•

W.

/

amendment. Business

Underwriter—Adanim

.

23, 1962 filed 100,000 common. Price—By amend¬
ment. (max. $7.50). Business—Converter of
linings and
interfacings used in the manufacture of clothing. Pro¬

expansion, debt repayment and working capi¬

Assembly Products, Inc.

Barker

Underwriter—To be

of

debt

repayment,

electronic

equipment

devices.

St., Los Angeles. Underwriter—William

Pro¬

Barogenics,

Price—$12.50. Busi¬

offering

be

Bay State Electronics Corp.

^Atlantic City Electric Co. (7/18)
8, 1962 filed $15,000,000 of first mortgage bonds
due July 1, 1992.
Proceeds—For prepayment of bank

Ames Department
Stores, Inc."'*
April 27, 1962 filed 100,000 common. Price—By amend¬
ment
(max. $5).
Business—Operation of self-service
discount

lantic

niques for use in the fields of oceanography, meteor¬
ology, seismology and ionospheric phenomena. Proceed!
—For product development and
working capital. Office
—43 Leon St., Boston. Underwriter—To be named. Of¬
fering—Indefinitely postponed.

June

.

department stores.

Proceeds—For debt repay¬

ment, expansion and working capital. Office—Mill St.,
Southbridge, Mass. Underwriter—Kahn & Peck, Cohn
& Co., N. Y.
.

Ampoules,

Price—At-the-mar-

development of sterile dis¬
ampoules.
Proceeds—For selling

hypodermic

stockholders.

and

construction.

City.

Office—1600

Office—34

N.

Main

St.,

Hudson,

Ohio.

Underwriter—None.

(jointly). Bids—Expected July 18 (11
Irving Trust Co., One Wall St., N. Y,

at

Atlantic

Mid-Continent

Apache
$7,500 per unit. Proceeds—Exploration and drilling for
oil and gas in Canada. Office—523
Marquette Ave., Min¬
neapolis.
Underwriters—The company and APA,
Inc.,
Minneapolis (a subsidiary).
March

Inc.

E.

Jefferson

(7/2-6)

30,

derwriter—Baruch Brothers & Co., Inc., N. Y. Offering
—Expected sometime in August.

Business—Manufacture
fiers.

Beauty Industries, Inc. (6/18-22)
April 19, 1962 ("Reg. A") 99,990 common. Price—$3.
Business—Ownership, operation and franchising of
beauty salons. Proceeds—For debt repayment; equip¬

Ave., Detroit. Underwriter—

Atmosphere Control, Inc.
("Reg. A") 200,000
Proceeds—For

capital.

and

sale

Price—$1.50.

common.

of

Misti-Cone

ment;

humidi¬

Jenks

Donnelly

Blauner

Ave., St. Paul, Minn.
& Jansen, Inc., St.

Bene

Atmospheric Controls, Inc.
Aug. 22, 1961 ("Reg. A") 40,000

Inc.
("Reg. A") 100,000 common. Price
$3.
Business—Importation, sale and distribution of Italian
cosmetics. Proceeds
For advertising, inventory and
working capital. Office—114 W. 13th St., N. Y. Under¬
writer—Granite Securities, Inc., N. Y.

For

—

Price—$3.50.
acquisition and

common.

of loans,
Office—715 N. Fayette St., Alexandria,
Underwriter—First Investment Planning Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.
—

repayment

working capital.

Bernalen,

(7/2-6)
("Reg. A") 70,000 common. Price—$2,625.
Business—Design, manufacture and installation of photo¬
graphic processing and control equipment.
Proceeds —
for advertising, expansion and equipment.
Office—9821
Foster Ave., Brooklyn, N. Y.
Underwriter—Amber, Bur¬
stein & Co., Inc., N. Y.

Va.

1962 filed 100,000 common, of which 80,000
by the company and 20,000 by stockhold¬
ers.
Price—By amendment (max. $8.50). Business—Re¬
search, development and engineering under defense con¬
tracts.

holders.

Proceeds—Repayment of bank loans, equipment,
and working capital. Office—Paramus,

plant expansion
N.

J. Underwriter—McDonnell &
Arden

Co., N. Y.

"

Farms Co.

1962 filed $6,000,000 of 6% conv. subord. de¬
bentures due 1990 to be offered in
$100 units; also 49,993
shares of $3 cumulative preferred stock and

205,105
common shares to be offered for
subscription by stock¬
holders of the respective classes on the basis of one
share

for

each 10 held.
Price—For debentures, at
for stock, by amendment. Business—Manufacture,
purchase and sale of ice cream and other dairy products.
par;

Proceeds—For
son

debt

repayment.

Ave., Los Angeles.

Office—1900

Underwriter—None.

W.

Slau-

*

Argus Financial Fund, Inc.
12, 1962 filed 800,000 capital shares to be offered in
exchange for certain securities acceptable to the Fund.
Price—Net asset value (expected at $12.50 per share).
diversified

open-end

investment

company

which plans to participate in the long-term progress of

savings and loan associations, and allied financial busi¬
nesses.

Pines

Proceeds—For

investment.

Office—1118 Torrey

Road, La Jolla, Calif. Dealer-Manager—Argus Fi¬
(same address).

nancial Sales Corp.

.

Argus Inc.
May 29, 1962 filed $4,000,000 of 6% convertible subordi¬
nated debentures due 1972. Price—By amendment. Busi¬
ness—Manufacture

and




i

distribution

of

Inc.

(6/25-29)

exhaust fans and kitchen cabinet hardware.

plant

working

expansion,

capital.

equipment,

Office—South

debt
Main

amateur

motion

Proceeds—

repayment

St.,

Union,

and

111.

.

•

Berne of California,

Oct.

27,

Business

1961

fice—1621

—Adams &

Australia

(Commonwealth of)
(6/20)
1, 1962 filed $30,000,000 of bonds due 1982. Price
—By amendment.
Proceeds—To
assist
in
financing
various

public work
Stanley & Co., N. Y.
•

projects.

Underwriter—Morgan

Automatic Controls, Inc.
28, 1961 filed 50,000 common.

—Design,

manufacture

and

Price—$4.

installation

Business

corporate purposes.
Y.

Underwriter

Office—3601 Merrick Rd., Seaford.
—

S.

Schramm

&

Co., Inc., N. Y.

Offering—Expected sometime in July.
Automatic Marker Photo Corp.
Dec. 1, 1961 filed 150,000 class A
shares, of which
000 are to be offered by the
stockholders.

125,company and 25,000 by
Price—By amendment. Business—Sale and

distribution of

a

photocopy machine and supplies.

Pro¬
expansion, and working capital.
Office—153 W, 36th St., N. Y. Underwriter—None.
ceeds—For equipment,

Price—$3.

S.

San Pedro

St., Los Angeles.

Underwriter

Co., Los Angeles.

Besfform

Foundations, Inc.
filed 185,000 common, of which 36,500
are to be offered by the company and 148,500 by stock¬
holders. Price—By amendment (max. $20). Business—
Design and manufacture of popular priced foundation
garments. Proceeds—For working capital. Office—38-01
47th Ave., L. I. C., N. Y. Underwriter—Smith, Barney &
Co., N. Y. Offering—Temporarily postponed.
Feb.

23,

1962

of

electrical,
pneumatic, hydraulic and mechanical systems, controls
and devices to control and
automatically operate indus¬
trial machinery and processes.
Proceeds—For general
N.

Inc. (7/2-6)
A") 85,000 common.

Manufacture of handbags and related items.
Proceeds—For debt repayment and working capital. Of¬

ville, Fla. and A. M. Kidder & Co., Inc., N. Y.
June

("Reg.

—

Underwriters—Pierce, Carrison, Wulbern, Inc., Jackson¬

Dec.

Feb.

Business—A

Manufacturing,

Price—By amendment (max. $7). Business—
Design, manufacture and sale of kitchen range hoods,

For

May 23,

new

Aubrey

Inc.

March 7, 1962

March 28, 1962 filed 140,004
common, of which 100,000
shares are to be offered by
company and 40,004 by stock¬

to be sold

are

Cosmetics,

March 2, 1962

Paul, Minn.

Proceeds

acquisition and working capital. Office—330
Ave., Newark, N. J. Underwriter—Seymour
Co., N. Y.

an

Chancellor

equipment, inventories and work¬

Office—668

cranberries

and canned cranberry sauce.
plant expansion, equipment and work¬
Office—367 Main St., Wareham, Mass. Un¬

ing capital.

Winckler Co., Detroit.

Underwriter—Pewters,

1962 filed $3,750,000 of participating units in
Canadian Gas & Oil Program 1962.
Price—

Arde

Office—8469

ing

Apache Corp.

tribute frozen

Proceeds—For

Corp.

May 28, 1962

March 21,

EDST)

—

ucts.
Proceeds—For machinery
research, sales promo¬
tion, and working capital. Office—26 Essex St., HackenNew York.

a.m.

•

Beaton (John J.) Co., Inc.
May 28, 1962 filed 150,000 common. Price—$5. Business
—Company plans to process and can cranberries, and dis¬

(max. $6). Business—A holding company. Primarily
insurance concerns. Proceeds
For acquisitions.

F. J.

& Co., Inc.,

At¬
Probable

March 30, 1962 filed 600,000 common. Price—By amend¬
for

Underwriter—Amber, Burstein

Ave.,

ment

Anchor Industries
Corp. (7/2-6)
Nov. 24, 1961 filed 38,500 common. Price—$8. Business
—Design and fabrication of precision sheet metal prod¬

sack, N. J.

Pacific

Underwriters—(Competitive).

bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co.Shileds & Co. (jointly); Lee
Higginson Corp.; Kuhn,
Loeb & Co.-American Securities
Corp.-Wood, Struthers
& Co.

Inc.

March 28, 1962 filed
5,900 common.
ket.
Business—Design and

posable

loans

u~->

Oct. 27, 1961 filed 160,000 common. Price—By amend¬
ment.
Business—Development of products and tech¬

indefinitely postponed..

was

(7/30-8/3)

writer—Globus, Inc., N. Y.

Note—This

named.

Inc.

Co.,

March 30, 1962 filed 100,000 common. Price —
$7.50.
Business—Research and development in ultra high pres¬
sure technology and the
design and sale of ultra high
pressure equipment. Proceeds—For inventories,
research,
and sales promotion. Office—51 E. 42nd
St., N. Y. Under¬

ness—A small business investment
company. Proceeds—
For general corporate
purposes. Office—744 Broad St.,

Newark, N. J. Underwriter—To

R. Staats &

Los Angeles.

and

working
Chesterland, Ohio.

common.

(6/25-29)

(approx. $12). Business—Merchandising of home,
commercial and institutional furnishings. Proceeds—For
expansion and debt repayment. Office—818 W. Seventh

capital.
Office—Wilson Mills Rd.,
Underwriters—Prescott & Co. and William T. Robbins
& Co., Inc., Cleveland.
Atlantic Capital Corp.
Aug. 29, 1961 filed 500,000

Corp.

ment

(6/25-29)

electromechanical and

Bros.

March 15, 1962 filed 200,000 common.
Price—By amend¬

-

March 29, 1962 filed
$1,250,000 of 5Y2% conv. subord. de¬
bentures due 1972. Price—At par. Business—Manufac¬
ture

Barish

Associates, Inc. (7/9-13)
Sept. 1, 1961
("Reg. A") 50,uuu common.
Price—$4.
Business—Aeronautical research and development. Pro¬
ceeds—For working capital.
Office—224 E. 38th St.,
N. Y. Underwriter—Gianis & Co.. N. Y.

Ascot Textile Corp.

Y.

—

American Israel Investment Co.. Inc.

-N

postponed.

Price—By

A mortgage
lending company.
Proceeds—For general corporate purposes. Address—108
Achad Haam St., Tel-Aviv, Israel.

55th

Feb.

ceeds—For

Bacardi Corp.

Bank "Adanim" Mortgages & Loan Ltd.
Dec. 29, 1961 filed $556,000 of 6% cumulative
preference
dividend participating dollar-linked shares.

•

•

Price—$4. Business
"Dairy Drive-ins."

a selling stockholder.
Address—San Juan, Puerto
Underwriter—Eastman Dillon, Union Securities &
Co., N. Y. Offering—Imminent.

St., N. Y. Underwriter—Dana Securities Co., Inc., 80
Wall St., N. Y. Note—This
offering has been temporarily
postponed.

(6/25-29)

Rico.

Publishing Co., Inc.
("Reg: A") 103,000 common.
Price—$2.
Business—Publishing of a bowling magazine. Proceeds
corporate purposes. ' Office—14

Babs, Inc.

—For

Burn-

1962

general

C.

8, 1962 filed 35,000 common. Price—$50.
Busi¬
ness—Distilling and bottling of "Bacardi" rum. Proceeds

Ascot

29,

Underwriter—A.

March

cotton pillow cases. Proceeds—For
inventory, repayment
of loans and
working capital. Office—1030 Pearl St.,
B.

Ave., Tampa.

Proceeds—For debt repayment and
working capital. Of¬
fice—32550 Pulaski Dr., Hayward, Calif. Underwriter—
Pacific Coast Securities
Co., San Francisco. ♦

Co., Inc., N. Y.

Branch, N. J. Underwriter—Mortimer
side & Co.,
Inc.; N. Y.. -

Willow

through

Ave., Little

Long

N.

Nov. 27, 1961 fiiea iou,uuo common.
—Sale of dairy
products,

Mills, Inc.

ceeds—For

22,

the

(6/22)
Sept. 28, 1961 filea 135,000 class A common shares. Price
—$5. Business—The purchase, conversion, decoration,
gift packaging and distribution of terrycloth towels and

Busi¬

Proceeds—For
Under¬

Office—800 Hartford Bldg., Dallas.

writers—Kidder, Peabody & Co., N. Y. and Rauscher,
Pierce

debt

repayment and
equipment.
Office — 32

tional

fice—217

Allyn & Co., Chicago.

—

Office—335 W. 35th St., N.
named. Offering—Temporarily

(6/25-29)

Price—$11.

ness—A real estate investment
company.

investment.

and

tal.

American Southwest Realty Trust
Feb.

be

offered for sale in units of one $500
30 warrants.
Price
By amendment.
Business—Manufacture of hydraulic system devices and
parts for the aircraft and missile industries, etc. Pro¬

—For

capital.

to

debenture

trucks and mobile homes. Proceeds—To
purchase Ameri¬
can Fidelity Fire Insurance Co. Office—American Plan

Underwriter—Bear,

&

Industries, Inc. (8/6-10)
29, 1961 filed $600,000 of 6% convertible subordi¬
debentures and 36,000 common stock purchase

Jan.

American

Meyerhoff

nated

stockholders). The securities will be offered in units of
one $10 debenture and one share.
Price—By amendment
(max. $22.50 per unit). Business—Production and serv¬
icing of physical damage insurance - On automobiles,

Bldg., Westbury,-N. Y.
Co., N. Y.

Underwriter—Freehling,

Automatic
Merchandising, Inc.
May 24, 1962 filed 225,000 common, of which
125,000 are
to be
offered>by company and 100,000 by stockholders.
Price—By amendment (max. $6).
Business—Company
operates, owns, services and leases coin-operated auto¬
matic vending machines.
Proceeds—For debt repay¬
ment, inventories, equipment and working capital. Of¬

*

Arnav

Dec.

ceeds—For

Price—$10.
Business—General real estate. Proceeds—For corporate
purposes.
Office—320 Park Ave.y N. Y; * Underwriter—•
Interamerica Securities Corp., N. Y.
March

picture and still equipment. Proceeds?—For debt repay¬
ment and-working capital.. Office — 5950 W.
Toughy

45

Big Mart Discount Stores
March

30, 1962 ("Reg.
Business—Operation of

A")
one

60,000 common. Price—$5.
discount merchandise center

and four ladies'

hosiery and lingerie stores. Proceeds—
For expansion, inventories, working capital and other
corporate purposes. Office—249 W. 34th St., N. Y. Under¬
writer—Amber, Burstein & Co., Inc., N. Y. Offering—
Expected sometime in August.
Blanche

(Ernest E.) & Associates, Inc.
15, 1962 filed 80,000 class A common. Price—$3.
Business—Application of electronic and mechanical data
processing techniques to solution of problems for govMarch

Continued

on

page

46

46

The Commercial and Financial Chronicle

<2798)

ernment

Proceeds—For equipment, sales

and industry.

•

Price—$3. Business
.—The processing of plastic raw materials into com¬
pounds for extruding and moulding into plastic prod¬
ucts. Proceeds
For debt repayment, equipment and
working capital. Office—35 Pequit St., Camden, Mass.
Underwriter—Godfrey, Hamilton, Taylor & Co., Inc.,
29, 1962 filed 120,000

common.

Capital Management Corp; v
("Reg; A") 60,000'common Price—$5; Bus!- "
investment company Which will hold mort¬

gages, Jan# contracts, etc.
Off ice—44 El Indian School

+

Blankenship,

registration

was

withdrawn.

■'

'

29, 1962 ("Keg. A") 100,000 common. Price—$3.
Business—Furnishing of market research and consulting
services.
Proceeds—For working capital and general
corporate purposes. Office—95 Madison Ave., N. Y.
derwriters—Kenneth Kass and J. J. Krieger 8z Co.,

Mar.

26,

tures

Industries,

Casavan

due

eral

Tenn.

Office—2600 Popular Ave., Memphis,
Underwriters—Lieberbaum & Co., and Morris

Cohon

& Co.,

porate

purposes.

N. Y.

'

Co.

Edison

Boston

(6/14)

1962 filed $15,000,000 of first mortgage bonds
due 1992.
Proceeds—To refund a like amount of 5Y4%
bonds due Oct. 1, 1989. Office—182 Tremont St., Boston.
Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co. Inc.; First Boston Corp.; Harriman Rip¬
18,

May

Brothers.

ley & Co., Inc.; White, Weld & Co.; Lehman
Bids—Expected June 14 (11 a.m. EDST).
Braun

Engineering Co.

Business—Manufacture of automotive parts,

(max. $9).
nuts

and

certain

Proceeds—

aluminum products1.

repayment, working capital and purchase of
leased office and plant.
Office*—19001 Glendale Ave.,
Detroit. Underwriter—Watling, Lerchen & Co., Detroit.

For debt

Brinkmann

Mar.

26,

shares

1962 filed
to

are

Inc.

Instruments,
be

100,000

offered

common,

by

the

.

of which 77,420
and' 22,580

company

shares by stockholders. Price—By amendment (max.,
$7775). Business—Importing and? distribution of scien¬
tific instruments. Proceeds—For research and develop¬

(8/20>24)
March 29, 1962 filed 100,000 common. Price*—$5. Busi¬
ness — Operation
of self-service discount department
stores. Proceeds—To retire outstanding debentures, and
for working capital. Offiee—1101 Albany Ave., Hartford,
Conn. Underwriter—Gianis & Co., Inc., N. Y.
v /
(Michael)

Distributors* Inc.

Buddy L. Corp. (6/25-29)
April 2, 1962 filed 225,000 common. PHce—By amend¬
ment (max. $10). Business — Design, manufacture and
sale of various type toys; Proceeds—For a proposed ac¬
quisition of another toy company. Office—200 Fifth Ave.,
N. Y. Underwriter—Milton D. Blauner & Co., Inc., N. Y.
Calvert Electronics, Inc.
March 30, 1962 filed 80,000 common,
are

ers;

and

by company and 40,000 by stockhold¬
Price*—By amendment (max. $5). Business—Sale

distribution

electronic

of

tubes.

Proceeds?—Inven¬

capital and other corporate purposes.
St., N. Y.
Underwriter—Philips,
Rosen & Appel, N. Y.
tory,

working

Office—220E.

23rd

Cambridge Fund of California, Inc.
Sept. 28, 1961 filed 280,000 common. Price—By amend¬
ment. Business—General real estate. Proceeds—Debt re¬

payment and working capital. Office—324 E. Bixby Rd.,

Long Beach, Calif. Underwriter—To be named.
Cameo

Lingerie,

Inc.

(6/25-29)

Feb. 12, 1962 filed 190,000 common, of which 120,000 are
to be offered by the company and 70,000 by stockhold¬

Price—$5. Business—Manufactuer of women's and
children's tailored panties.
Proceeds—For debt repay¬
ers.

ment,
Puerto

inventory and working capital.
Rico. Underwriter

—

Offiee—Fajardo.

Schweickart

&

Co., N. Y.

• Canale Chemical Corp.
June

12, 1962 filed $250,000 of 0% convertible subordi¬
debentures due 1970 and warrants to purchase
25,000 common shares, to be offered in units of one $100
debenture and 10 warrants to purchase one share. Price
nated

—$100

per

unit.

Business

—

Manufacture of

industrial

chemicals for sale primarily to

the graphic arts indus¬
try. Proceeds—For plant expansion, inventory, sales pro¬
motion, research and development. Office—3T Cottage
Row, Glen Cove, N. Y. Underwriter—None;
Canaveral Hills

Enterprises! Inc.

May 10, 1962 filed 100,000 common. Price—$5. Business
was formed to own and operate a country
club and golf course; swimming pool and cabana club,
near
Cape Canaveral, Fla., and' develop4 real estate,
erect homes, apartment houses; motels, etc. Proceeds—
For debt repayment and expansion. Office—309 Ainsley
Bldg., Miami, Fla. Underwriter—Willis E. Burnside &

—Company

Co., Inc., N. Y.
Capital4 Investments, Inc.,
May 21, 1962 filed 80,370 common to be offered^ for sub¬
scription by stockholders on the basis of one new share




•

j

-

—

Office—250 Vreer

purposes.

Ave., Paterson, N. J. Underwriter—To be named,

curities, Inc., N. Y.

V

r

;-:;;';.7

•

■:"/7/

Cedar Lake Public Service Ctorp.
March

20,1962 filed 9,964 common. Price—$100. Business
Company plans to qualify as a public utility and

—

furnish

water

and

disposal

sewage

services

in

and

Lake, Ind. Proceeds — To construct a
sewage disposal system. Address — R.R. N. 3, Box 28,.
Cedar Lake, Ind. Underwriter—None./
Cedar

Cemeteries of America', Inc.
March 27,1962 filed $500,000 of T% conv. subord. deben¬
tures due 1974 to be offered by the company and 65,000 •
common shares by stockholders.
The securities will be
offered in units

consisting of $100 of debentures and 13
Price—$178 per unit. Business—Operation of

shares'.
five
of

cemeteries

mausoleums

in

Kansas.

Proceeds—For

construction

and

working
capital.
Office—3096
Hutchings St., Kansas City, Kan. Underwriter—Bernard
M. Kahn & Co., Inc., N. Y.
Centco Industries Corpk
April 30, 1962 filed 120,000 common.
w

—

-

~

—-

■"

a

St., Whitestone, N. Y. Underwriter—Arnold Malkan &
Co., Inc., N. Y. Offering—Expected in late August.

7-

Center Star Geld Mines,

Inc.' .7''-7- '

4

April 10, 1962 ("Reg. A") 1,200,000 common. Price—25
Business—For exploration, development and pro¬
of mineral deposits. Proceeds—For minings ex¬

cents.

duction
penses.

Address—Box;469, Wallace,.Idaho.

ers—Pennaluna

Spokane, Wash.

&

Co.

and

Standard

Underwrit¬
Inc.,

Securities,

y{/y ■■. 7y
Acceptance. Corp. of Delaware
1961 filed 150,000 class A common. Price—$5.
/ 7/y/

Central

Nov. 29,

Business—A sales finance company.

Proceeds—For ex¬
pansion. Office.—526 North Ave. East, Westfield, N. J.
Underwriter—To be named.
Central Investment &
Jan.
are

Mortgage Co.

26, 1962 filed 60,000 common, of which 50,000
to be offered by the company and 10,000 by stock¬

holders; also $1,200,000 of 6y2% convertible subordinated
debentures due
tures:

1974; Price—For

stock"

$5; for deben¬

at

par. Business—Company was4 formed to hold
the stocks of a mortgage company, an insurance
agency
and" a real estate development company. Proceeds—For
debt repayment and'

-

working capital. Office—44 Forsyth

St., N. W., Atlanta* Ga; Underwriters-—Joseph Walker &
Sons, N. Y. and Clark, Landstreet & Kirkpatrick, Inc.,
Nashville, Tenn. Note —This company formerly was
named Continental Investment & Mortgage Co.

Century; Food Processors*. Inc.
May 28, 1962 filed 200,000 class A, of which 165,000 are
to be offered by company and 35,000 by stockholders.
Price—By amendment (max. $3). Business—Manufacture
of animal and vegetable shortening
products. Proceeds—
For equipment and working capital. Office—3001 Michi¬
gan Ave., Detroit. Underwriter—Charles Plohn & Co.,

.

Church

7'-<v'7 * 7,-y'■ ?''t

Builders** lnc;7>

Feb. 6, 1961 filed: 50,000 shares of common stock, series
-

2.

Price—$5.50 per share. Business—A clbsed^end diver¬
sified management investment company." Proceeds*-rFor
Office—501

Distributor—Associates

Bailey Ave., Fort' Worth, Tex.
Management;' Inc., Fort Worth.

Cincinnati Gas & Electric Co; (6/21)"
/ <
> 7
May 7, 1962 filed $25,000,000' of first'mortgage bonds1 due
1992. Proceeds—To repay bank loans and finance con¬
•

struction.

Office—139 East Fourth St., Cincinnati: Un¬
derwriters—(Competitive).
Probable bidders: Merrill
Lynch, Pierce,- Fenner & Smith Inc.-Lehman Brothers
(jointly); Morgan Stanley & Co.-W. E. Hutton
Co.
(jointly); Halsey Stuart & Co. Inc.; Blyth & Co., Inc.:First Boston Corp. (jointly); Eastman Dillon, Union Se¬
curities & Co.-White, Weld
& Co. (jointly); BidsExpected June 21 (11 a.m. EDST). Information Meeting
—June 18 (11 a.m. EDST) at Irving Trust Co. (47th fl.),
One Wall St., N. Y.,
77 77.,:;; 7 7%i7/yy:7y

Cine-Dyne/ Inc.
•./
77:777
May 25, 1962 filed" 100,000 common.1 Price—$4. Business
—Production of motion picture and television programs.
Proceeds—For production expenses,- working
capital,
debt repayment and other corporate purposes. Office—
40 E. 49th

Underwriter—R. A. Holman & Co.,
7 7
■;.7;7,
V ■ y •.

St., N. Y.

Inc., N. Y.
•

Cinerama, Inc.
;
1, 1962 filed 50,000 common. Price—By amend¬
ment
(max. $20). ■Business—Production, distribution
and exhibition of; wide angle motion pictures. Proceeds
—For selling stockholders. Offiee—575 Lexington Ave.,
N. Y. Underwriter—To be named.
7
'
-

"June

Clark Cable Corp.
April 30,1965 filed $?87^fl0 of'6%% ednv. subord. debentures due 1972 to be offered fbr subscription by Com>n

»;yy.,

Price—$5. Busiplastic and rubber film laminates,
a line of casting, laminating and embossing machinery.
Proceeds—For new products, debt repayment,: inven¬
tories and working capital.
Office—11-17 Clintonville

ness—Manufacture of

;i;

•:■••;/.•>■ 7>.■■■ i
••
April. 27, 1962 ("Reg. A") 36,000 common. Price—$5.
Business—Development* • manufacture and sale of plastic
specialties. Proceeds—For equipment,; research and de¬
velopment, and working, capital";; Office—341 Vassar St.,
Cambridge, Mass. Underwriter—Gianis- & Co., Inc., N. Y.
Offering—Expected sometime in August.4

Investment.

:

ing capital and other corporate purposes. Office — 682
Main St., Stamford, Conn. Underwriter—Foundation Se¬

of which 40,000

to be offered

Inc.

CasSi-O-Maticr Coupon Corp;

equipment, debt repayment and other corporate
purposes. Office—115 Cutter Mill Rd., Great Neck, N. Y.
Underwriter—D. B. Marron & Co.,
Y.
Bruce

C

May 25, 1962 ("Reg. A") 100,000 class A common. Price
—$1.25. Business—Merchandising of coupons by vending
machines located in supermarkets. Proceeds—For work¬

ment,

•

^

N. Y.

Industries,

loans and other corporate

land

around

May 11, 1962 filed $400,000 of 6%% s. f. subord. deben¬
tures due 1974; also 109,990 common, of which 100,000
will be sold by the company and 9,990 by stockholders.
Price—For debentures, at par; for stock, by amendment

:

$7.
Business—Production of plastics, marble and ceramics
for the packaging and building industries. Proceeds-^
For expansion, leasehold improvements;, repayment of

1962 filed $2,000,000 of conv. subord. deben¬
1977. Price —At par. Business —A holding

for 16 subsidiaries in the real estate and gen¬
contracting business. Proceeds—For general cor¬

y

Aug. 21, 1961 filed 350,000 capital shares; Price

Inc.

company

lock

Richard J. Buck & Co.,

Inc.,

:

•

Capital'Corp.
..-.U
Feb. 28, 1962 filed 400,000 common. Prices$3.60; Busi¬
ness—A. small business investment company. Proceeds
For general corporate purposes: Office—23 Dronningens Gade, St. Thomas, Virgin Islands. Underwriter-

.**-

..

•'Chomerics, Inc.

Pacific

Caribbean

Un¬

York.

Bioomfield

—

pending this issue.
•■■■

May

New

New York.

For investment,

—

Rd., Scottsdale, Ariz-. Under¬
Underwriters, Inc., Scottsdale; Ariz.
Notes—The SEC has issued an order temporarily sus¬
writer

.

Inc.

Ostberg,

Proceeds:

23, 1962 filed 100,000. common, of which 70,000
to be offered by company and 30,00Qby stockholders.

Price—By amendment (max; $12.50) eBusiness—Design,
manufacture and sale of plastic educational'toys ^ Pro¬
ceeds—For working capital:
Office—1125 Close Ave.,
Bronx; N. Y.
Underwriter—J. R. Williston & Beane,

Dec. 27 1961

—

N. Y. Note—This

are

ness—An

Chemical Corp.

Blane

Inc.

May

Business—A small business investment. company.
Proceeds—For debt repayment, and investment. Office—
743 N. Fourth St., Milwaukee. Underwriters—Marshall
Co., and Loewi & C0i, Inc., Milwaukee.
-i
$10).

promotion and expansion. Office—10419 Fawcette St.,
Kensington, Md. Underwriters—Jones,, Kreeger & Co.,
and First Investment Planning Co., Washington, D. C.
Offering—Postponed.
Jan.

Child' Guidance Toys,

Price—By amendment (max;

held.

for each two shares

Continued from page 4:5

Thursday, June 14* 1962

each

\JL1
,§toc^hol<lerson the basis ui »piuu UI ucucwiuica for
of $150 of debentures XV JL
100 sharesheid. Price—At par. Business—-Manu-

facture of

electrical, electronic and mechanical' systems
components, and replacement parts for aircraft; mis¬
siles and naval vessels. Proceeds—For working capital.

and

Office—3184

West

St..

32nd

Robert L. Ferman &

Cleveland.

Underwriter—.

Go., Miami, Fla. -;

Clark Equipment Co.

r.7 --/

March 22, 1962 filed 125,000 common/
PrieeiyBy amendmerit (max. $34).. Business—Mariufacthre of trucks', self-

propelled construction machinery and- highway trailers.
selling
stockholders.
Office—324E.
Dewey Ave.,. Buchanan, Mich. Underwriter—Blyth &
Co., Inc., N. Y.
:./■ :

Proceeds—For

Coburn Credit Co.,. Inc.
(6/25-29)
April 27, 1962 filed $5,000,000 of conv. subord deben¬
tures, due 1982. Price—By amendment;
Business—A
consumer sales finance company.
Proceeds^—For work¬
ing capital and general corporate purposes. Office—53
N.

Park Ave., Rockville Centre, N. Y.
Brand, Grumet & Seigel, Inc., N. Y.

Underwriter—

/

/

'

•

•

College Publishing Corp. (6/25-29)•'
March 16, 1962 ("Reg. A") 155,000 common; Price—$1.
Business—Composition, publication and distribution of
study manuals for examination preparation. Proceeds—
For equipment, expansion and other corporate purposes.
Office—142 Livingston St., Brooklyn, N. Y. Underwriter
—James Co., N. Y.
7Colonial Board Co.

(6/27)

March 28, 1962 filed 164,000'common, of Which 115,000
are to be offered by the company and 49,000 by stock¬
holders. Price—By amendment (max. $15>. Business—

Manufacture of shoeboard and boxboard.

Proceeds—For

expansion, equipment and debt repayment'.

Office—615

Parker

St., Manchester, Conn. Underwriter—Putnam &
Co., Hartford, Conn.
•

Columbia Bancorporation

Feb. 23,1962 filed $30,000,000 of convertible subordinated
debentures due 1987 and 1,500,000 common to be offered

New York.

in units of

•

amendment. Business—A bank

Century Real Estate Investment Trust
June 4, 1962 filed 200,000 shares of beneficial interest.
Price—$107 Business — A real estate investment trust.
Office—2651 E. 21st St., Tulsa, Okla. Underwriter—DeWitt, Herndon & Co., 720 Enterprise Bldg., Tulsa.
Chemical Coatings' Corp.

(7/16-20)

Dee. 27", 1961 filed 75*000 common. Price—$5 Business-

Manufacture of paints particularly for use
and semi-tropical
climates. Proceeds—for

in tropical
equipment

and working capital. Address—Santurce. Puerto Rico
Underwriter—Arnold Malkan Growth of Puerto Rico,
Inc., Cabrer Bldg., Ponce de Leon Ave., Santurce, P. R.

Chestnut Hill Industries,. Inc.
1961 filed 300,000 class A common, of which
225,000 are to be offered by the company and" 75,000 by
Nov. 29,

stockholders Price—$7.50, Business—Design and manu¬
facture of; women's, misses- and junior sportswear, co¬
ordinates* and- dresses. Proceeds—For debt repayment,
equipment and working capital. Office—2025 McKinley
St., Hollywood; Fla. Underwriter* -—Clayton Securities

Corp;,. Boston*, Mass; Offerings—Expected in-September.

$20 debenture and one share. Price—By
holding company recently
formed to acquire stock of First Western Bank
&
Trust Co., Los Angeles, Proceeds—For acquisition of
First Western stock, and working capital. Office—1000
Vermont Ave., N. W., Washington, D. C. UnderwritersBear, Stearns & Co., and Allen & Co., N. Y. Offering—
Expected sometime in July.
one

Commercial Trust Coi

May 16, 1962 filed 150,000 common. Price — By amend¬
ment (max. $13). Business—Acquisition or administra¬
tion of mortgage loans for institutional investors. Com¬
pany also is engaged in the consumer loan business and
acts as an insurance agent or broker in connection there¬
with: Proceeds—For debt repayment. Office—66 Pryor

St., N. E., Atlanta. Underwriters—F. S; Mbseley & Co.,
Atlanta.

Boston and Courts & Co.,

Computer Applications Inc.
March 23, 1962 filed

87,000 common. Price—By amend¬
Business—Furnishing of services redata processing equipment.
Proceeds—For expansion and' working; capital. Office—
ment

(max. $5).

tatedv to

*

use

of electrohic

Volume

195

Number 6168

.

.

The Commercial and Financial Chronicle

.

(2799)
30 F.

42nd St., N. Y,

Underwriter—L. M. Rosenthal &

Co., Inc., N. Y.

;-V

•

Corporate Funding Corp. (7/2-6)
April 26, 1962 ("Reg. A") 76,000 class A common. Price
$4. Business — A financial investment and

•

Computer Components, • inc.
Dec. 6^ l^frl filed 120,000 common, of which 90,000

Proceeds—For expansion and working capital.
Office—39 Broadway, N. Y. • Underwriter—R. F. Dowd.
& Co. Inc., N. Y.

company.

are

to be offered

by the company and 30,000 by stockhold-;
trice—$3. Business. — Manufacture of miniature,

ers.

coils for relays used in computers, aircraft, missiles and
guidance systems. Proceeds—For general corporate pur-'

Office—88-06

poses.

Van

1^. Y. Underwriter—To
•

Wyck

Computer Concepts Inc.

Cosnat Corp. (6/25-29)
May 26, 1962 filed 190,000 common, of which 178,000 are
to be offered for public sale
by the company and 12,000

Expressway,, Jamaica,,

be named.

/ /

/''/,/•

(6/25-29)

29^.^61 filed-lOp,0Q0 class A common. Price —■ $5.1.
Business—Development and sale of, advanced program- .-

the repayment of debt, and working capital. Office—315
W. 47th St., .N. Y. Underwriter—Van

Alstyne, Noel &

problems by the.
For

general

Co., N. Y.; Note—This firm

cor¬

N. W., Washing-,
Y.

-

_

sale

-

,

1

.

,

.

^

•

Concord Products, Inc.

Nov. 28,

1961

filed

(with attached' 3*
additional 60,000 shares

common

purchase

to

warrants

year

at $2 per share)

-

120^000

an

to be offered in units of

one-half warrant.

Price—$2

one

share and,

unit/Business—Manu¬

per

facture of cosmetics, toiletries, cleaning chemicals,
jew-J
elery, etc. Proceeds — For general corporate purposes
Office - 525-535 E. 137th St., New York City.
Under¬
writer—M. G.

Davis, 150 Broadway, N. Y. Offering—Ex¬

pected in July.
•

Country

Set Inc.
2, 1962 filed 150,000 common. Price—By amend¬
ment (max. $8).
Business—Design and manufacture oU
Mar.

sports and casual wear for girls and
—For selling stockholders. Office —

—

Underwriter—To be named.
■

Consolidated

(6/19)

Edison

York, Inc.

•

Courtesy Products Corp.
May 16, 1962 filed 150,000 common.
ment,

May 16, 1962 filed $100,000,000 of first and refunding
mortgage bonds due 1992. Proceeds—For cdhstriiCtion..»
Office—4 Irving Place, New York.
Underwriters—(Com-/
petitive). Probable bidders on the bonds: First Boston
Corp,; Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
Bids—June 19 (11 a.m. EDST) at company's office.
-

deben¬

tures

due 1977: (with warrants); also 305,000 common
shares, of which 285,000 will be sold by company and

20,000

by

stockholders.

Price—For

debentures, at par;
for stocjk, by amendment" (max.
$9). Business—Renting
o'f cars, trucks and equipment. Proceeds—For debt repotent

pomiisition

other

and

coroorate

Office—1012 Baltimore Ave., Kansas
City, Mo, Under
Co., N. Y. Offering—Expected in Aug.;
Consolidated Vending Corp. ■ ,
rr ,y ,

April.2, 1962 filed 70,000 common. Price—$5.75. Business
—Operation of vending machines.. Proceeds—For debt
repayment working capital and other corporate purposes.
Office—129 S. State St., Dover, Del. Underwriter—Dana
Securities Co., Inc., N. Y.
Offering—Expected in July.
Consumers

Mart

St., San Diego, Calif Underwriter—Pacific Coast
Securities Co., San Francisco. Offering—In
early July.

Voisin

Co.,

Inc.,

"

May 9, 1962. ("Reg. A") 200,000 common. Price—$1.50/
Budness—Investment in real estate mortgages. Proceeds
—For

working, capital. Office—Scottsdale Savings B'ldg.,
Scottsdale, Ariz.
Underwriter—Continental
Securities
Corp.,. Scottsdale, Ariz. V
^
'
1
;
~

Continental Research, Inc.
April 19, 1962 ("Reg. A") ,50,000

common.

Business—^Production

of

and

sale'

Proceeds—For general corporate purposes.
Olson Memorial Highway, Golden

Underwriter—Harold E; Wood &

Price—$5.65.

pany.

ControlDyne, Inc.
24, 1S61 filed 150,000

Price—$1.15. Busi¬

—

This

firm

formerly

was

Bruce

Co., Minneapolis. Note—

named

Control

Dynamics, Inc.

Offering—July.
•

Cooke

Dec. 29,

(F.

L.)

Creative

,

Inc.

one

share and

ness—A
cern.

one warrant. Price—$2.25 per unit. Busi¬
corporate guidance and interim financing con¬

Company

may also act as a broker-dealer and un¬
Proceeds—For investment. Office—733 Third

derwriter.

Ave.,

N.

Y.

ness—Manufacture

common.

Price—$3.75. Busi¬

of high vacuum systems and elec¬
—
For debt repayment and
general corporate purposes. Office.—145 Water
St., South
Norwalk. Conn. Underwriters—John R. Maher
Associ¬

tronic equipment. Proceeds

ates and Bull & Low. N. Y.




Underwriter—Hampstead

Investing

Corp.,

New York.

&

Co., Inc.; N. Y.; .

;

•

Deuterium Corp.
Sept. 28, 1961 filed 140,000 common with attached war¬
rants to purchase an additional
140,000 shares to be
offered for subscription by stockholders in units
(of one
share and one
warrant) on the basis of 3 units for each
5% preferred share held, 2 units for each 5%
preferred
A stock held and one unit for each 10 class B
shares
held.

Price—$20

per

unit.

Business—Company plans to

manufacture and utilize all kinds of chemical materials.:
Proceeds—For start-up expenses for a
small

plant

Office—360

Lexington

laboratory and
Ave., New York.

1

Diamond Dust Co., Inc. (6/25-29)
Feb. 27, 1962 filed
102,000 common; Price—$3. Business
—Production of graded diamond powder and
compound..
Proceeds—For debt repayment, additional
personnel,
advertising and working capital. - Office—77 Searing

Ave., Mineola, N. Y. Underwriter—Magnus & Co., N. Y.
Diamond Mills Corp.
Jan. 23,

1962 filed

to be offered
ers.

200,000 common, of which 120,000 are
by the company and 80,000 by stockhold¬

Price—By

amendment. Business—Manufacture of
nylon hosiery. Proceeds—For debt repayment
and working capital.
Office—417 Fifth Ave., N. Y. Un¬
derwriter—Drexel & Co., Philadelphia. Offering—In¬
women's

Diversified

Real

Estate

Trust"' .hn-e-

March 8,

1962 filed 1,000,000 shares of beneficial inter¬
Price—$10.
Business—A real
estate; investment

est.

Office—500 Fifth Ave.,

Co., Inc., (same address). Offering—Expected in Aug.
Doman Helicopters, Inc.
April 19, 1962 filed 418,680
subscription by stockholders

shares for each three held.

$1.25).
tion

of

common
on

the

to

offered

be

basis

of

two

for
new

Price—By amendment (max.

Business—Research, development and

construc¬

experimental helicopters. Proceeds—To obtain
of models, train service
personnel, repay

certification

debt, etc.

Address—Municipal Airport, Danbury, Conn.

Underwriter—None.

Credit

Department, Inc.
26, 1962 filed $1,200,320 of 7% conv. subord. de¬
bentures due 1974 and 54,560 common shares to be
offered in 2,728 units, each consisting of $440 of deben-;
tures and 20 common shares.
Price—$550 per unit.
Business—A consumer sales finance company. Proceeds
-^-For debt repayment.
Office—1775 Broadway, N. Y.
Jan.

—

Bernard

M.

Kahn

&

Co.,

Inc., N.

Y.

Donmoor-lsaacson, Inc.
Feb. 26, 1962 filed
150,000 common, of which 50,000 are
to be ..offered by the
company and

100,000

by

stock¬

holders.

Price—By amendment (max. $12). Business—
Design and manufacture of boys knit shirts, sweaters,
and pajamas. Proceeds—For
working capital. Office—
1115
Broadway, N. Y. Underwriter—Goodbody & Co.,
NT. Y. Note—This
offering has been temporarily post¬
poned.

—Design, sale, fabrication and installation of acoustical
ceilings. Proceeds—For debt repayment and expansion.
Office—1925

Euclid

Ave., San Diego. Underwriter
Holton, Henderson & Co., Los Angeles.

—

D. C. Transit Systems, Inc.
April 30, 1962 filed $3,150,000 of 6V2% conv. subord. de¬
bentures due 1977 and five-year warrants to purchase
an

aggregate of 94,000 class A shares, to be offered for
subscription by holders of class A and class B stock in
units consisting of $100 of debentures and three war¬
rants.
Price—$100 per unit. Business—Operation of a
public transit system in Washington, D. C.; a new sub¬
sidiary to construct housing projects in Washington,
Proceeds—For construction and general corporate
Office—3600 M St., N. W., Washington, D. C

Drever

Co.

March 9, 1962 filed 122,700
common, of which 42,500 are
to be offered by
company and 80,200

by stockholders.

Price—By

amendment

(max.

$12).

Business—Design
metallurgical furnaces.
Proceeds—For debt repayment, equipment and
general
and

manufacture

of

industrial

corporate purposes. Address

—
Red Lion Rd., and PhilAve., Bethayres, Pa. Underwriters—Janney, Bat¬
tles & E. W. Clark, Inc. and Stroud
&Co., Philadelphia.

mont

Drew

Realty Corp.

March 6, 1962 filed 163,000 class A.
Price—$10.
—General real estate.
Proceeds—For debt

Office—50

Broad

St., N. Y.
rities Corp., (same
address).

Business

repayment.
Underwriter—Drew Secu¬

•

Dulany Industries, Inc.
26, 1962 filed 400,000 common. Price—By amend¬
ment (max. $6.25). Business—The
canning and freezing
Feb.

foods.
Proceeds—For
debt
repayment. Office—850
Third Ave.. N. Y. Underwriter—Blair &
Co., Inc., N. Y.

conv.

subord. debentures

repayment,
Office—5458 Third St.,

working capital and expansion.
N. t E., Washington, D. C.
Underwriters—Laird

&

Co.,

>

ton, D. C.

Offering—Temporarily postponed.
•

Devices of Boston, Inc.
April 26, 1962 filed 200,000 common. Price—$5.

Business

—Company plans to design, develop and produce elec¬
tronic and electro-mechanical devices,

including printers

for electronic computers.

Proceeds—For product devel¬
opment, new plant and equipment and working capital
Western

Ave.,

Boston.

Davos, Inc.

-

Office—232
Securities

debt

Madison

repayment

Ave., N. Y.
Corp., N. Y.

Price—$6.50.
ski resort.

a

working capital.
Underwriter—Oxford

and

Food

Equipment

Corp.

(7/2-6)

—For development and working
capital. Office—79 Wal¬
worth St., Brooklyn, Underwriters — Carroll
Co. and
Paul Eisenberg Co.,

Inc., N. Y.

Duro

Pen

Co., Inc.

Jan. 5, 1962 filed 125,000 common.
Price—$4. Business
—Manufacture of inexpensive ball point
pens. Proceeds
—For debt repayment,

equpiment and working capital.
Broadway, N. Y. Underwriter — Godfrey.
Taylor & Co., N. Y. Offering—Temporarily

Office—573

Hamilton,
postponed.

Underwriter-

May 28, 1962 ("Reg. A") 35,000 common.
Business—Development and operation of
Proceeds—For

Dunhill

Dec. 29, 1961 filed 100,000 common. Price—$2.50. Busi¬
ness—Manufacture of food service equipment. Proceeds

•

Data Systems

Schmidt, Sharp, McCabe & Co., Inc., Denver.

(6/25-29)

125,000

Ventures

Corp.
May 28, 1962 filed 150,000 common and warrants to pur¬
chase 30,000 additional shares, to be offered in units of

Office—342

1961 filed

Underwriter—Alessandrini

Proceeds—For investment.

Wilmington, Del. and Jones, Kreeger & Co., Washing¬

ness—Development and production of electronic testing
and training devices. Proceeds
For expansion and
working capital. Office—9340 James Ave., S., Minne¬
apolis. Underwriter—E.

DeLuxe Homes, Inc. (6/25-29)
11, 1961 ("Reg. A' ) 60,000 common. Price — $5.
Business — Construction and
financing of shell homes.
Proceeds—For working capital.
Address—Allendale, S. C.
Dec.

Underwriter—Bacon, Johnson Realty Management

due
1977.
Price—At par.
Business—Operation of 14
discount retail drug stores primarily in the
Washington,
D. C. metropolitan area.- Proceeds—For debt

& Co. and

'
common.

wood

of

Business—A telephone holding com¬
Proceeds—For debt repayment.
Office—111 S.

Oct.

of

N. Y.

Dart Drug Corp.
(6/20)
May 10, 1962 filed $1,000,000 of

(max. $15).

Bemiston" St., St. Louis! Underwriters—Allen
E. F.Hutton & Co., N. Y.

Se¬

trust.

U nderwriter—N one.

Valley, Minneapolis.
Co., St. Paul.

Continental Telephone Co. (7/16-20)
March 30, 1962 filed 475,000 common.
Price—By amend¬
ment

St., Mami, Fla. Underwriter—Lancer
Co., 92 Liberty St., N. Y.

Bldg.y Atlanta, Ga. Underwriters—McDonnell & Co., Inc.,
N. Y., and Wyatt. Neal &
Waggoner, Atlanta. OfferingExpected sometime in late July.

purposes.

Office—6500

Proceeds—For

purposes/ Office—1191

definitely postponed..

D. C.

dispensers.

oxygen

institutions.

warrant to purchase 2 shares.
Price—By amend¬
(max. $140). Business—Engaged in residential real
estate development. Proceeds—For debt
repayment and
other corporate purposes. Office—905 Fifteen
Peachtree;
a

•

.

Investment Corp.

.

Mar. 26, 1962 filed 115,000 common. Price—$4. Business

Office—4701"

Co., N. Y. and Midland Securities
City, Mo.

Continental

Properties Inc.
/
March 29, 1962 filed $1,000,000 of 6Y2% subordinated
debentures due 1972, 60,000 common
shares, and war¬
rants to purchase 20,000 common shares. The securities
will be offered in units of one
$100 debenture, 6 shares

Crownco

Underwriters—Rittmaster,

&

Kansas

Cousins

Underwriter

America, Inc. (7/2-6)
Jan. 8, 1962 filed 72,000 common.
Price—By amendment
Business—Operation of discount department stores. Pro¬
.

motels of electric wall units for the

Palm

of

ceeds—For expansion and working
capital.
N.
Harlem
Ave;, Chicago.

$5).

preparation of coffee, and the sale of coffee, tea, cream,
etc. Proceeds—For debt
repayment, advances to a sub-^
sidiary and general-corporate purposes.
Office—1411

purposes.

writer—Blair &

•

(max.

and

corporate

Underwriter—None.

Price—By amend¬
Business.—Manufacture, and sale or;

lease to hotels and

hotels
other

and metal framed
pictures, wood utility
frames, etc. Proceeds—For debt repayment,
inventory,
and working capital. Office—444
Courtland St., Mundelein, 111. Underwriter—To be named.

ment

;;.//J ' -"/'.v

Consolidated Leasing Corp. of America
April 27, 1962 filed $1,100,000 of 6Y2% subord.

Proceeds

Washington

Underwriter—Goodhody & Co., N. Y.
Offering—Temporarily postponed.

and

Co. of New

1136

Ave., .St. Louis.

Concors

Supply Co., Inc.
33":'.^/.v ■"
Oct. 19, 1961 filed 125,000 class A common. Price—$3..
Business—Sale of food service and kitchen equipment.:
Proceeds
For equipment, debt repayment and other*
corporate purposes. Office—110 "A" St., Wilmington, Del.
J

women.

and

22nd

29, 1961 filed 120,000 common, of which 90,000
to be offered by the
public and 30,000 by a stock¬
holder. Price—By amendment.
Business—Production and

r Cost-Plus,
Inc.
"■ ■-./•'
v/
May 14, 1962 filed 157,000 common, of which 127,000 are
Computer Control Co., Inc.
.
r.,r .1
Jan. 24, 1962 .filed 157,500 common, of which 62,500 are-, to be offered by company and 30,000 by stockholders,
Price—By amendment (mak. $5)Business—Importing:
to be offered by the company ;and 95,000 by stockhold-/
and marketing furniture, household and art
ejs. Price—By amendment. Business—Design and manu«; .*
goods at dis¬
count prices.
Proceeds—For working capital. Office—facture of digital equipment. Proceeds—For debt
re-;,
payment. Office—983 Concord St., Framingham, /Mass. ;• 460 Bay St.,. San Francisco.. Underwriter—Stewart, Eubanks, Meyerson & Co., San Francisco.
Underwriter—Kidder, Peabody & Co., N, Y.'

Computers. Inc.
3 ;
v
April 2, 1962 filed 10,000 common.. Price—$40,: Business—Design, engineering, manufacture and sale of pompu-;
ting systems and process control equipment. Proceeds—
For iequipment, inventory and working capital. Office—;
5123 GlenmontDr., Houston. Underwriter—To be named.:

spreads for

W.

Decorel Corp.

•

>

N.

Dec.

known formerly as the.

was

Cosnat Record Distributing Corp.

bed

expansion

are

—

.

Interiors, Inc.
("Reg. A") 52,000 class A common. Price—
$2.50. Business—Manufacture of
draperies, furniture and

curities

outstanding by the present holders thereof. Price—To be
supplied by amendment. Business
The manufacture
and distribution of
phonograph records. Proceeds—For

Dec.

mipg systems^ forr solution of, business
use of digital computers. Proceeds —
porate purposes./Office—1012 14th St.,
ton, D. C. Underwriter—Doft & Co., N.

Decorativo

Feb. 26, 1962

holding

r

47

•

Duro-Test

Corp.

April 6, 1962 filed $1,750,000 of subordinated debentures
due 1982 (with attached warrants) to be offered in units
consisting of $1,000 of debentures and a warrant to pur¬
chase

60

$1,000

per

shares. Price—By amendment (max.
unit). Business—Manufacture and sale of in-

common

Continued

on

page

48

48

The Commercial and Financial Chronicle

(2800)

Continued from page

47

■

'

/

■»-

<

,

electronic

ceeds—For

Pro¬

plant expansion, inventory, and equipment,..
Office—1202
Arnold Ave., New Castle, Del,
Under¬

(7/9-13)

writer—Weil & Co., Inc.,

—Real

—Expansion, new products and working capital. Office—
4865 Exposition Blvd., Los Angeles. Underwriter—Ray¬
mond Moore & Co., Los Angeles.

waukee.

240,000 common.

Price—By amend-

-

R.

Jan. 22, 1962 ("Reg. A")
143,000 common. Price—$2.
Business—Design, development and production of.
"packaged" electronic circuits and sub-systems.
Pro¬
ceeds—For new products and working capital.
Office—
317 Main St., East Rochester, N. Y. Underwriters—Gen¬
esee
Valley Securities Co., Inc., Rochester, and H. B.
Vesey & Co., Inc., Glens Falls, N. Y. /' • V
*
"V

and

Penn

Center
Plaza, Philadelhia. Under¬
Co., Philadelphia and Kidder, Pea-

&

Properties Improvement Corp.

801

250,000

shares.

common

to

Price—For deben¬

be

ness—A dealer

;

(with,. ;>/,•
unit. Business—
use,

•

;of"
.

'

purposes;

Proceeds—For

Utilities

/

investment.

due

1982.

of

water

-

Co.

1962 filed $750,000 of 5y2%

conv.

subord.

de¬

Price—By

amendment. Business— >
distribution and sewage collection

Proceeds—For

sion

working capital.

debt

repayment, plant expan¬
Office—1491 N. W. 20th St./
Miami. Underwriter—Finkle & Co., N. Y. Offering—Exand

'

pected in August.

St., Youngstown, Ohio.
Co., Inc., N. Y.

Floseal Corp.
May 10,-1962 filed 169,420 common to be"'offered for
subscription by stockholders.
Price—By amendment
(max. $2). Business—Company owns and licenses carton
pouring spout patents and die patents. Proceeds—For

Underwriter—A. J.I

debt repayment and

be offered

in units of

100

common

and

.,

,

corporate

Office—164

Busi¬

Proceeds

E.

Main

—324

ment
D.

Un¬

,

Higginson Corp., N. Y. Offering—Tem¬
porarily postponed.

Industries,

March 30, 1962 filed $250,000 of QV2% conv. subord. de¬
bentures due 1987, also 70,000 common
shares, of which

be

offered

by

share). Business
and

—

sale

of

and 25,000 by
(max. $1 per com¬

company

stockholders. Price—By amendment

ponents and electronic instrumentation and control de¬
and

working capital. Office—Sayville Industrial
Park, Greeley Ave., Sayville, L. I., N. Y. Underwriter—
Pierce, Carrison, Wulbern, Inc., Jacksonville, Fla.

instrumentation.

Proceeds—For

general

corporate

pur¬

Office—Sawyer Lane, Hudson, Mass. Underwriter

—Gianis & Co., Inc., N. Y.

125,000

Corp.

common.

Price—$3. Busi¬

and distribution of components for
background music; design, construction and installation
of specialized closed circut TV
system. Proceeds—For

debt

repayment, expansion, sales promotion and work¬
ing capital. Office — 103 E. Hawthorne Ave., Valley
Stream, N. Y. Underwriters—V. S. Wickett & Co., Inc.,

Thomas, Williams & Lee, Inc., and Crosse & Co., Inc..
N. Y.

(6/25-29)
A") 50,000 common. Price

May 25, 1962 ("Reg.
$6.
Business—Operation of supermarkets. Proceeds—For ex¬
pansion and working capital. Office—896 Old Country

Rd., Westbury, N. Y. Underwriter
Stonehill, Inc., Hempstead, N. Y.

—

—

Reed, Whitney &

of

movable

St.,

N.

Service

W.,

Electronics, Inc.
June 4, 1962 filed $200,000 of 634%
1974, and $50,000 common, to be
$200 of debentures and 50 shares.

conv.

debentures due

offered

in

units

of

Price—$400 per unit.
precision instruments, and

•

Securities

.

Donnell &

150,000
shares

are

by

Y,/yc*%v

Corp. of Santa Barbara
/ 4 '
1962 filed 200,000 capital shares, of which
to be offered by the company and 50,000
stockholders.
Price—By amendment (max.
a savings and
acquisition of stock and
Office—1035 State St., Santa Barbara,

Proceeds—For

Calif. Underwriter

—

Dean

Witter &

Co., Los Angeles.

Offering—Indefinitely postponed.
•

18th

Inc.

selling stockholders, Of-v
N. Y. Underwriter—Mc-.

-

Co., N. Y. Offering—Temporarily postponed.

Federation, Inc.
30, 1962 filed 75,000 capital shares. Price — By
amendment (max. $105). Business — Ownership of 11
California savings and loan associations. Proceeds—For
selling stockholders. Office — 615 S. Flower St., Los
Angeles. Underwriters—Kidder, Peabody & Co. and Mc¬

Offering—Expected in July.

First Connecticut Small Business Investment Co.

(7/2-6)
March

9, 1962 filed 200,000 common. Price—By amend¬
(max. $15).
Business—A small business invest¬
Proceeds—For investment. Office—955
Main St., Bridgeport, Conn. Underwriter—P. W. Brooks
& Co., N. Y..
-

St.,

advertising, and equipment.
Office—1634Santa Monica, Calif. Underwriter — Rutner,
Inc., Los Angeles.

Founders Financial Federation, Inc.
May 4, 1962 filed 135,000 common. Price—$6. Business
—Commercial financing, industrial time sales financing
and factoring.
Proceeds—For working capital. Office—
440 W. 34th St., N. Y. Underwriter—Edward Lewis Co.,

Inc., N. Y. Offering—Expected sometime in August.
Four

March

Star Sportswear, Inc.
27, 1962 filed 103,000 common.

Price—$3.

Busi¬

ness—Design, manufacture and distribution of men's
outerwear, sportswear and rainwear.
Proceeds—For;

Office1'
Underwriter—Magnus & CoV

plant expansion, equipment and working capital.
v

.-^665, Broadway, N. Y.
Inc., N. Y. Offering—Expected sometime in July.

/

*

V

i;J

Four Star

Television, Inc. \
March 16, 1962 filed 211,250 capital shares.
Price—By//,;amendment (max. $25). Business—Production and mar:v
keting of television films. Proceeds—For selling stock-;;
holders.

Office—4030 Redford Ave., North Hollywood/
Underwriters—Paine, Webber, Jackson & Curtis,

Calif.

N. Y. and Dempsey-Tegeler & Co.,

V

Inc., St. Louis. Offer-- /;

ing—Indefinitely postponed.
Foxboro Co.

Financial

March

•

Sons,

Jackson & Gray,

wall

working capital.

&

• "42"
Products, Ltd., Inc. (6/25-29)
April 18, 1962 ("Reg. A") 100,000 class A common. Price
—$3. Business—Manufacture and sale of cosmetics. Pro¬

Inc.,

Financial

16,

(Alex)

ceeds—For

writer—Sinclair Securities, Inc., 37 Wall' St.^ N;
March

Forst

toys and games. Proceeds—For
fice—2885 Jerome Ave., Bronx,

Washington,

partitions. Proceeds—For debt repay¬
ment, inventory, advertising and other corporate pur¬
poses. Office—1465 N. E. 129th St., Miami,,Fla. Under-,

May 29,

(6/25-29)

1962 filed

$12,209,000

of

conv.

subord.

deben-

tures due July 1, 1982 to be offered for subscription bystockholders on the basis of $100 of debentures for each
20 common shares held. Price—At par. Business—Man¬
ufacture

of

industrial

instruments

for

indicating,

re¬

cording and controlling temperature, pressure, flow and
other process variables. Proceeds—For plant
expansion,
debt repayment and other corporate purposes. Office—
38 Neponset Ave., Foxboro, Mass.
Underwriter—Paine,*
Webber, Jackson & Curtis, Boston.

ment

ment

Emcee




15th

Underwriter—Investor

Donnell & Co., N. Y.

Ellner & Pike, Inc.

of

C.

Office—729

loan association.

(6/25-29)

ness—Manufacture

Business—Manufacture

trust.

/

*

1961

March 23, 1962 filed 100,000 common. Price—By amend¬
ment (max.;$15).
Business—Wholesale distribution of

-;

$20). Business—Company plans to acquire

Electronic Transmission

1962 filed

"

soundproofing compounds, and exterior building coat¬
ings; manufacture of plastic laminated panels, and sale

vices. Proceeds—For equipment, debt
repayment, a new

Electromagnetics Corp. (7/23-27)
/
Nov. 17, 1961 filed 75,000 common. Price—$5. Business
—Design and manufacture of precision nuclear magnetic

'

■

<

21,

Blvd., S., Las Vegas, Nev. Underwriter—To be named.;

To be

•
FIFCO, Inc. (6/25-29)
May 17, 1962 ("Reg. A") 66,666 class A common. Price
—$3. Business—Application of sprayed fireproofing and

Design, production, assembly,
transformers, magnetic com¬

•

"

—

Forrest Electronics Corp.

("Reg. A") 130,000 common. Price—$2.
Business—Research, design, manufacture, sale and dis¬
tribution of precision electronic and mechanical com¬
ponents. Proceeds—For debt repayment, equipment and
general corporate purposes.
Office— 425 Las Vegas

Co.

iBldg., Denver. Underwriter

Drug Research Laboratories, Inc.
1962 filed 107,500 common, of which 100,000
to be offered by company and 7,500 by stockhold¬
Price—By amendment (max. $5). Business—Chem¬
24,

Dec.

Fidelity Mining Investments Ltd.
Nov. 30, 1961 filed 800,000 common. Price—By amend¬
ment. Business—Exploration and testing of mining prop¬
erties. Proceeds—For general corporate purposes. Office
—62 Richmond St., Toronto. Underwriter—G. V. Kirby
& Associates, Ltd., Toronto.

(9/25-29)

Inc.

Insurance

•

Washington, D. C.

derwriter—Lee

Electromagnetic

Marine

Office—

Underwriter—None.'

biological research and testing for the food, drug,
cosmetics, chemical and related industries. Proceeds—
For expansion,
equipment and debt repayment.
Ad¬
dress—Maurice Ave. at 58th St./Maspeth, N. Y. Under¬
writers—Maltz, Greenwald & Co. and Rittmaster, Voisin
& Co., N. Y.
;

• Federal Realty Investment Trust
June 5, 1962 filed 500,000 shares of beneficial interest
with attached three-year stock purchase warrants to be
offered in units consisting of 100 shares and 50 warrants.
Price—$500 per unit. Business—A real estate invest¬

Photo-Optical Industries, Inc.
Jan. 26, 1962 filed 150,000 common, of which 100,000
are to be offered
by the company and 50,000 by stock¬
holders.
Price—By amendment.
Business—Wholesale
distribution of cameras, lenses, accessories and optical
instruments. Proceeds—For debt repayment, expansion,
Office—111 Fifth Ave., N. Y.

Guaranty

named.

Ehrenreich

working capital.

&

other corporate purposes.

St., Wilmington, Del.

ical and

April 11, 1962 ("Reg. A") 125,000 common. Price—$2.
Business—Writing of special risk insurance. Proceeds
—For reserves and general corporate purposes.
Office

St.,
Underwriter—Reserve Funds, Inc.,

purposes.

City, N. D.
Valley City, N. D.

|Price—$3.

Fire

10th

Food &

May

50 warrants.

ers.

Federal

common.

W.

100

Fastpak, Inc. (7/2-6)
Nov. 30, 1961 filed 125,000 common. Price—$5. Business
—The distribution of nuts, bolts and other fastening
devices manufactured by others. Proceeds—For
debt
repayment and general corporate purposes. Office—8
Benson Place, Freeport, N. Y. Underwriter — Arnold
Malkan & Co., Inc., N. Y. ;//// /•=.

Address
Underwriter—

finance business.

recourse

Valley

•

Water &

Operation

are

)

Econ-O-Pay, Inc.
Oct. 26, 1961 filed 1,000,000

22,

consist-./

shares

Atlantic Blvd., Pompano

systems.

capital.

—Indefinite.

Proceeds—For selling stockholders.

To be named.

March

^

Bancgrowth, Inc./

Florida

bentures

amendment. Business—Manufacture of con¬
zippers. Proceeds—Debt repayment, advertising
and working capital. Office—8 Washington Place, N. Y.
Underwriter—Jarco Securities Co., Inc., N. Y. Offering

Price—By amend¬
Business—Manufacture of replacement
electrical and braking systems of automatic

-^-Echlin Ed. & U. S. 1, Branford, Conn.

poses.

•

cealed

(max. $25).

plant

"

;

Beach, Fla. Un¬
derwriter—Dempsey-Tegeler & Co., Inc., St. Louis.

Price—By

Echlin Manufacturing Co.
May 24, 1962 filed 210,000 common.

distribution

Florida

Office—3356

•

to

in units

common

$350 per
sale, " for amateur

specializing in bank stocks.

Fastline, Inc.
Sept. 28, 1961 filed 100,000 common and 50,000 warrants

named.

are

offered

—

promotion and other corporate

May 29,

Market

Carno

.

Office—10 J2. 40th St, New York. Underwriter—To

mon

•

Engineering Corp.

working

/

March 16, 1962 filed 200,000 common.
Price—By amend-/
ment
(max. $15). Business—An-investment company

Fairway Mart, Inc. (6/25-29)
March 19, 1962 ("Reg. A") 100,000 common. Price—$3,
Business—Operation of five discount merchandise cen¬
ters. Proceeds—For expansion, advertising, inventories,
working capital and other corporate purposes. Office—

tures, $1,000; for stock, $10. Business—General real es¬
tate. Proceeds—For the acquisition and development of
real properties, repayment of debt and engineering, etc.

45,000

>

Office—
39-08 24th St., Long Island
City, N. -Y;; Underwriter-—*'
Bond, Richman & Co., N. Y. •: -v

Office—41 E. Twelfth St., N. Y.
Underwriter—Planned Investing Corp., N. Y.

Aug. 22, 1961 filed $1,500,000 of subordinated debentures

and

sales

April 2, 1962 filed 100,000 class A shares. Price—$2.40.
Business—Manufacture and sale of long-lived electric

body & Co., N. Y.

General

/

debentures

•

writers—Drexel

equipment.

subord.

lighting equipment and photographic accessories.'
—
For equipment, new product
development,-

camera

lamps. Proceeds—New product development, inventories

Pennsylvania Investment Co.
filed 450,000 common. Price—By amend¬
ment (max. $16). Business—A small business investment
company.
Proceeds—For general corporate purposes.

for

Business

Proceeds

Everbest

Eastern

parts

Business—Brewing of malt
testing of metals-;

N. Y. Offering—Postponed.

March 16, 1962

ment

warrants). Price
manufacture and

Design,

Z'Z Evans,' Inc.-V?.•
^.'•'•S'
Jan. 23, 1962 filed 130,000 common, of which 20,000 are
to be offered by the company and 110,000 by stockhold¬
ers.
Price—By amendment. Business — Retail sale of
wearing apparel. Proceeds—For working capital. Office
—36 S. State St., Chicago. Underwriter—Allen & Co.,

Hanley, Hempstead, L. I., and Street &

(6/18-22)

$100 debenture and 50

one

attached

Sts., Philadelphia.
Underwriter—Woodcock, M o y e r,
Fricke & French, Inc.,< Philadelphia. Offering-—In July*

Corp.

Price—$10.

16, 1962 filed $95,000 of 6%

galvanized iron and steel products., Pro¬
ceeds—For debt repayment.
Office—10th & Callowhill

Co., Inc., N. Y.

due 1981 and

Blvd.,

Boston.

Products, Inc.

holders. The securities will be

ing of

and the sale of

(6/25-29)
subord. deben¬
50,000 common shares (of which 25,000 will be sold by the company and 25,000 by stock¬
holders). The securities are to be offered in units of one
$100 debenture and 10 shares.
Price—By amendment.
Business—Operation of retail camera stores and depart¬
ment store concessions.
Company also processes black
and white film
and repairs photographic equipment.
Proceeds—For debt repayment and working capital. Of¬
fice—68 W. Columbia St., Hempstead, N. Y. Underwrit-

Eastern

Northern

due 1972 and 47,500 common
shares, of which 44,650 aref >
to be offered by the company and
2,850 by selling stock-/

beverages, the processing, cleaning and

tures due 1972 and

3

March

:.V

.-'V

Debentures, $1,000; stock, $8.

March 28 1962 filed $500,000 of 6% conv.

—

/

.

W. Pressprich & Co.,

Flex Electric

Esslinger's Industries of Philadelphia, Inc.
March 28, 1962 filed $850,000 of 6y2% conv. subord. de-v
bentures due 1977 and 112,500 common shares.
Price—

Dyna-Mod Electronics Corp.

Office

Office—1295

estate management.
Proceeds—For debt repay¬
Office—7 Pemberton Sq., Boston. Underwriter—

ment.

firms

ers—-Edwards &

investment.

Realty Co. of Boston
May 1,1962 filed 150,000 common.

Washington, D. C.

Business—A holding company for
selling life insurance and mutual funds. Proceeds
—For new sales offices, advances to subsidiaries and;
working capital. Office—5150 Wilshire Blvd., Los An-,
geles.
Underwriter—Wisconsin-Continental, Inc., Mil¬

A

Eastern Camera & Photo

Thursday, June 14, 1962

First

Equity Funding Corp. of America
March 29, 1962 filed
ment (max. $6.50).

April 2, 1962 ("Reg. A") 60,000 common of which 40,000
will be sold by company and 20,000 by stockholders.
Price—$5. Business—Manufacture, installation and sale
of kitchen ventilating hoods and exhaust fans. Proceeds

•

.

Manhasset, N. Y. Underwriter—None.

ceeds—For

Redpath, N. Y. Note—This registration was withdrawn.'

>V

control.

.

r

candescent, flourescent and mercury vapor lamps. Pro-,
ceeds—For working capital. Office—2321 Hudson Blvd.,
North Bergen, N. J. Underwriter—Auchincloss, Parker &
Dyna Mfg. Co.

and

measurement

for

devices

.

Frazier-Walker Aircraft Corp.

company.

Jan.

26, 1962 filed 140,000 common. Price—By amend¬
Business—Company plans to produce its Gyrojet,

ment.

—To

Business—A

N.

small

business

Price—$1.
investment company. Pro¬

•

FW-4, a four-passenger amphibious autogiro. Proceeds
v.*
produce prototype models, and finance general *\

First New York Capital Fund, Inc.
Oct 27, 1961 filed 2,770,000 capital shares.

overhead and

Y.

operating

expenses.

Underwriter—None.

Office—10 E. 52nd St.

t

Volume

195

Number 6168

»

.

The Commercial and Financial Chronicle

,

Frederick's of
Hollywood, Snc. (7/9-13)
March 26, 1962 filed
150,000 capital shares, of which 70,000 are to be offered
by company and 80,000 by a stockholder. Price—$5.
Business—Operation of a mail order
business and a chain of
women's apparel stores.
Pro¬
ceeds—For ! expansion
and
other
corporate purposes.

Office—6608 Holywood
Blvd., Los Angeles.
—Garat & Polonitza,
Inc., Los Angeles.
-

working capital. Office—13 E. Huron St., Chicago. Un¬
derwriter—Myron A. Lomasney & Co., N. Y.
•

:

Price—By amend¬
holding company for a
equipment manufacturer, a wholesale distrib¬
utor of houseware products and a
company operating
leased discount departments
dealing in hard goods. Pro¬
ceeds—For
debt
repayment, expansion and working
capital.
Office—134-01 Atlantic Ave., Jamaica. N. Y.
Underwriter—J. R. Williston & Beane, N. Y. Offering—
Temporarily postponed.

Underwriter

PrePayment of debt and reduction of bank loans.

•

Off ice—141 North Ave., Bridgeport, Conn. Underwriter
—Van Alstyne, Noel &
Co., N. Y. Offering—Postponed.
G. M.

.%

S.

Stores

'

,•

^

March

i

Securities, Inc.,

Gaslight Club Inc. (6/25-29)
Feb. 28, 1962 filed 100,000 common.
Price—By amendment (max. $7)
Business—Company operates four "key
debt

reduction,

General

June

(Suplee,

$15,000,000

„

^

(B.

•.

.

International, Inc

Alsco

Common

._

C. ;.Malloy,\.Iric.;' Hensberry & Co.
rJ: Morton & Go,, Inc.)$400,000

;v.\.

Securities

and

.

>

>

Co.)

248,000

•

Flex
■w

••

••

(Seymour Blauner Co.)

:

Electric*
■

.

'•>'

•

/

;

$299,970

V

(Bond, Richman

American
-

•

&

Co.)

Weeks)

$332,500

150,000

Blauner
&

Marin
.

Co.

Wm.

ana

Co.,

Inc.)

Stix

'

(Lee

be

to

named)

Semiconductor

Higginson

Corp.

Piper,

(Pierce,

(Scherck,

Pay'n

Save

&

Richter

Co.)

Peabody

&
;

•

Co.

Co.

r.

$2,000,000

Barker

-

Witter

&

(Milton

Cameo

v

Co.)

&

40,576

Co.)

Inc.)

Co.)

&

Co.)

Inc.)

Co.,

Co.)

and

Cooke

Bond,

Inc.)

140.000

&

J.),

DeLuxe

Corp.)

Diamond Dust

(Magnus &

(Edwards

Common

:

$305,000

'/

-

&

Hanly

Electromagnetic
f;:

(Pierce,

'

Street

and

Co.,

Martin

(Pierce,

(Bids 11 a.m. EDST)

$100,000,000

Carrison.

Wulbern,

Lane

Electronic- Transmission

v

(V.

,
,

.

S.

Wickett &

June 20

Australia
.

Space

Ellner &

shares
.

..Common

Corp.), .$500,000.

.
„

Stanley

Dart Drug Corp._—
f

(Laird

•

&

Co.

and

Inc.)

!

&

&

Co.,

(Meadowbrook

;

(A.

J.

Go.)

Bonds

:

"42"

$30,000,000

Kreeger

&

'

5,000

units

Universal Telephone, Inc..

to

and

>

.

,

.

*

'\

Class

Allyn

&

$300,000

Inc.)

Jackson

&

underwritten

Paine,
$12,209,000

Curtis)

by

Lynch,

Co.,

Inc.)

$240,000

Capital
100,000

shares

Clark

&

Inc.)

Co.,

Common

$250,000

Inc

Common

&

Co.,

Inc.)

$825,000

Co.,

Inc.)

Debentures
by

Kidder,

■

.

V,

Common

Co.tand

Dewar,

Robertson

&

Pancoast)

shares

—Common
Co.,

&

Inc.)

$480,000

Common
154,800 shares

Co., Inc.—

Pierce,

Fenner

Service

Units

Smith

&

Inc.)

of New

Co.

$4,500,000

Jersey,

&

Co.,

Inc.)

$300,000

Inc.

—--Common
A.

Lomasney

&

Co.)

$375,000

'

;•

(Fulton,

Reid

&

Common
Inc.)

Co.,

60>000

shares

Electronics, Inc
(Robbins,

'r '' V (Vickers,

Common

Clark

&

Co.,

$372,000

Inc.)

Corp.

Common

MacPherson

&

Warwick,

Inc.)

400,000

Roblin-Seaway Industries, Inc
(Brand,

Rosenfeld
(Robert

Grumet

Seigel,

&

Inc.)

Martin

(Kidder, Peabody

&

-Common

Associates,

Inc.)

Co.

and

Stearns

shares

120,000

Class A

—

Jessup

&

Lamont)

Engineering
(Bear.

l

$1,000,000

(Henry), Inc.—
A.

shares

Debentures

Salant & Salant, Inc.—

Schaevitz

Webber,

Peabody

$5,023,800

Common

Roadcraft

A

Class A
Gray,

—Common

Brewing Co
C.

Rite

;.

Debentures
stockholders,

Common

&

Brothers

(Myron

Securities, Inc.) $199,998
&

shares

Inc

stockholders—underwritten

Regulators,

.

Jackson

$5,000,000

260,000

Ridgewood Financial Corp

$300,000

Co.

(Offering

Scott

(Lee-Mosson

$375,000

;___——Common
Inc J

Inc.)

Inc.

$250,000

Products, Ltd., Inc

Foxboro

to

Radio Electric

shares

—

(Rutner,

.Debentures
Co.) $1,000,000
V

K.

Puerto Rico Brewing

^.——Common

Co.,

Co.)

Ben. Ints.

Bowling Corp

(Kordan

-

.

&

Co.,

(Bear, Stearns & Co.)

Securities, -Inc.)' $300,000

Carno

$700,000

Perfect Photo, Inc

,

Fairway Mart, Inc. il,

Co.,. Inc.)

148,300

Williams & Lee, Inc.

Inc.)

Pike, Inc.—..

(Sinclair

of)

'__

Jones,

(A.

Common

FIFCO, Inc.

(Wednesday)

(Commonwealth
(Morgan

Pearl

Corp.——,—Uommon

Thomas,

Inc.;

Crosse

■

•

Co.,

..Common

-i

-/- KBear, Stearns &• Co.) 262,500
(L. P.) Maintenance Corp.

rr*Johnson,

Inc.)

&

Common
&

&

Electromagnetic Industries, Inc.__'Conv. Debentures

.(Tuesday)

Kinney Service Corp..

?;■

(Offering

(Merrill

70,000

$1,500,000

Packard-Bell Electronics Corp

__Units

Inc.)

Inc.)

Co

(Robbins,

$300,000

Inc

Wulburn,

Siegel,

Common
Rice

J.

(Baruch

$306,000

&

Industries,

Carrison,

shares

Debentures

Oceana International,

Common

Co.)

34,200

Peerless Radio Corp..

Eastern Camera & Photo Corp

.

Common

Inc.)

New York Testing Laboratories, Inc

190,000 shares

Inc.)

Co., Inc.___

$150,000

Co.) $300,000

Co.)

Co.,

Siegel,
&

Common
&

j

,

-Units

(Jennings, Mandel & Longstreth)

Common

Alstyne, Noel & Co.)

$651,300

L——

Common

(Alessandrini

—..Common

—

State Industries,

$468,750

Homes, Inc

(Van

Capital

Common

:
$2,450,000

—

Grumet

(G.

Common

Inc

Safe

Nationwide

r.

$500,000

*

.

Multi

-■

$155,000

Co.)

$250,000

Corp.

(Blyth

Common

Corp

'

$150,000

Co

Corp
&

(F.

shares

Philadelphia

Bruce

Co.)

Inc.)

Class A

(Boettclier

Mosler

i

$5,000,000

Inc.)

(John R. Maher Associates and Bull & Low)

Cosnat

Common

A.

Seigel,

Co.,

Corp

(Irving

Debentures

&

shares

72,000

Midwestern Mortgage Investors

$950,000

Co., Inc
Grumet

(James

Common

First

Co.)

$120,000

Corp.)

&

Grumet &

(Brand,

Micro-Dine

Common
&

Food

V
.

shares

Lingeries, Inc

Ltd.)

Common
Wilkens

—:

(Brand,

shares

225.000

Inc.)

Common

Met Food Corp.—

Met

Common
&

(Doft &

Common

Consolidated Edison Co; of New York, Inc.^_Bonds

v

•

$600,000

200,000

Co.,

Common

(Sterling, Grace & Co. and Norton, Fox & Co.) 15,000 units

Common

Staats

R.

Capital

(Costello, Russotto

'

'

Inc.)

Co.,

Co.,

Securities

(George K. Baum & Co.)

Masters, Inc.

$1,250,000

Kidder &

&

Corp
Coast

Co., Inc

v

—Common
M.

A.

Computer Concepts Inc

$600,000

White Lighting Co

V.

Co., Inc.)

College Publishing Corp.__

Welcome Baby, Inc

June 19

&

Inc

Securities

Blauner

(Brand,

$1,200,000

ServiceMaster

(D.

D.

Coburn Credit

shares

Corp..

(Laren

Financial

'

Co.,* Inc.)

Corp

Common

Securities

(Gateway Stock &

'

&

Rose

1

(Shearson. Hammlll & Co.)

^^_Conv. Debentures
Robbins

and

Films

Mac-Allan

-

V

"1

.

Reuben

Livestock Financial Corp.

1

,

T.

(Schweickart

$300,000

Worth

Bros.

Debentures

Witter

Electronics

Inc.

" "

Common

Pierce

Buddy L. Corp

•

.

<.Thomas Jay, Winston & Co., Inc. and I. J. Schein &
Co.)

(Globus.

:

Common
Coast

(William

;

>

.

Corp

-

Rauscher,
$11,000,000

Inc.
(Pacific

..

(M.) Mfg., Inc

Wade, Wenger

.

and

(Fulton, Relds-&5 Co.^lnt; ahd Walston & Co., Inc.) 250,000 shates

*/;'**'

.

(Llovd

Unison

and

William

and

Common

(Dean

Stephens

Babs,

Hopwood)

Pay'n Save Corp.___
Stelber Cycle

shares;

shares

Kelley Realty Corp..,-

„

Common

200,000

1,605,100

Common

Inc.

(Martin-Warren

~

—Common

*

Carrison, Wulbern, Inc.

'

>

Debentures

Corp
(Dean

'■

Corp.^wCommon

Inc.; M. L. Lefi As Co.," Inc. and
Jenks, Kirkland & Co.) $525,000

Co.)

&

Conditioning Corp

(Pacific

140,004 shares

-•

1

^

V

Jayark

Co.,

Aubrey Manufacturing,

V

Common

$1,750,000

Jaffray

Drugs, Inc...

"v

Co

Noel

Co.,

Co., !-Inc.)Litej0w^;' t,<VH-Kapner, Inc. i.
(Arnold,
■'■•V;'

&

Laboratoriesy.Inc.__*

(Prescott &

Capital

:

$1,250,000

A„ Rieqke

Assembly Products, Inc

:7"

"

.'V

-

&

Jamoco Air

shares

Debentures

Inc.)

$300,000

&

page

$840,000

stockholders—underwritten by Cruttenden,
Podesta & Miller) 548.532 shares; -'.

(

..Capital

75,000 shares

Parkview

312,500

American Southwest Realty Trust—
.."(Kidder,

.

-Class A

Wasserman

Corp

and

H.

Bruce

on

Ben. Int.

Alstyne,

Manufacturing Co.

Class A

and

(California Investors)
>

County

National

f

',v:

Inc.

^

(Underwriter

Co.,

Equity

(Van

Iona

Co.)

(Richard

Inc.)

to be offered in

are

Continued

to
•

'

Financial Corp
(Dean Witter & Co.) 102,050 shares
National Security Life Insurance Co
-

Co.,

Gas

(Offering

American

1

shares

$600,000

Co.,

Mosley

Sulzberger,

(

•'

{Common

&

International Drug & Surgical Corp.,:
(Seymour

Hallowell,

<

Products, lnc._^_^—_______!_i^__Units 7

'(Hornblower

_

&

(MlltoiTD.'Blauner.

*f;.

shares

House of-Vision, Inc.
•

&

shares to be sold by

common

The securities

Common

American Cardboard & Packaging

Beauty Industries, Inc.i___i___—___i.-__Common r>:
•

Teller

v..

r"V

and 90,000

certain stockholders.

shares

Mosley

Yeatman,

•.

:_i_w_ij;_Units'.-.

,V;w-.-i'.-s.(Bear,' -Stearns &

Hughes

•

.

Co.),' $500,000 *

American Plan Corp.

•

Rafensperger,

Electronics, Inc.—

(Albert

American Modular
Manufacturing Corp.__Common
**
v

»

and

Yeatman,

(Suplee,

(Monday)

Alumatron

Co.

Allegheny Pepsi-Cola Bottling Co

-

June 18

tures due 1972

Interstate

100,000

EDST)

mail

Common

Allegheny Pepsi-Cola Bottling Co

Bonds
a.m.

&

new

Price—By amendment (max. $8.50). Business—Di¬

(Monday)

Parts, Inc

(McDonnell

Co

(Bids 11

25

Accurate

repayment,

Gerard Industries
Corp. (6/25-29)
March 28, 1962 fled $250,000 of 6% conv. subord. deben¬

Inc.

Price—$7.50. Busi¬

common.

debt

ness—A small business investment
company. Proceeds—

and

(Thursday)

Boston Edison

\x-.l.

14, 1962 filed 200,000

For

—

GilfilEan Corp.
April 4, 1962 filed 254,000 common. Price—By amend¬
ment (max. $18).
Business—Development and produc¬
tion of radar and other
specialized electronic systems.
Proceeds—For selling stockholders. Office—1815 Venice
Blvd., Los Angeles. Underwriter—Blyth & Co., Inc., Los
Angeles. Offering—Expected in July.

(7/16-20)
Mar.

NEW ISSUE CALENDAR
June 14

Investment Co. of Connecticut,

Proceeds

Offering—Indefinitely postponed.

and working capital.
Underwriter—G. E. C.

Ave., N. Y.
(same address).

order.

selling of vitamin mineral products to eld¬
Proceeds—For working capital. Office
—179 N. Michigan
Ave., Chicago. Underwriters—Bacon,
Whipple & Co. and Freehling, Meyerhoff & Co., Chicago.

—

subsidiaries,

mail

erly customers.

General Economics
Syndicate, Inc.
April 11, 1962 filed 400,000 class A common. Price
$10.
Business—An
insurance holding company. Proceeds—

in

Drug Corp.

rect

various

investment

150,000

&

150,000

Co.)

shares

Common

;

shares

'

(Marshall

Co.)

675,000

shares

Gaslight Club, Inc.
(Myron

June 21

(Thursday)

.

Cincinnati Ga«= & Electric Co
V

(Bids 11

a.m.

EDST)

,

-

Milk

Mills,

.

$20,000,000

••

'

B.




&

Hanly)

2,500

Co.,

Inc.)

units

$675,000

-

MacPherson

Servotronics, Inc.
•

(General

150.000

(George,

&

O'Neill

Co.

Street

Debentures
&

Co., Inc.)

$10,000,000

Solid

State

Inc.__i
Reid

&

Common
Co.,

Inc.)

$5,000,000

Superior

Anthony

Bakers,

-

'

-

-

Protein

(Arnold

Malkan

Corp
&

Co.,

Common
Inc.)

$450,000

$375,000

——Common
Inc.)

Co.,

$357,500

&

-

'

Blauner)

$567,000

Inc
R.

Common

—

L.

Day)

110,000

shares

Common

Inc

(Balogh

International

■

Inc.)

Common
D.

Products,

(Tucker.

Fund,

Co.,

Signalite Inc.

Co.) '$1,540,600

Corp..:

and

&

shares

Capital

—.—

Securities

(Milton

Land

200,000

Inc.)

Shelley Manufacturing Co

shares

Common
Noel

..Common

Warwick,

&

Common

Alstyne,

&

Security Aluminum Corp
(Vickers,

______-Units

(Fulton,

&

shares

V.

Common
Burnside

Cohon

Hampden

Inc

100,000

Co

American

(Morris

(Friday)

(Mortimer

Gould Paper
Gulf

Debentures
i

Artlin

(Edwards

(Van

Co

22

-

$300,000

(Kidder, Peabody & Co., Inc.)

June

Co.)

Glensder Corp.

,,

Class A

_'_ (Kiser, Cohn & Shumaker and Cruttenden, Podesta &

Pet

&

(Sprayregen, Haft & Co.)

Paul, Harris Stores, Inc
Miller)

Common

Lomasney

Girard Industries Corp

Bonds
$25,000,000

A.

Y.

ers.

industries.
Proceeds—For
debt
repayment,
equipment and working capital. Office—1252 W. Peachtree St., N. W., Atlanta, Ga. Underwriter — Robert M.
Harris & Co., Inc., Philadelphia. Note—The SEC
has is¬
sued an order temporarily
suspending this issue.

For

N.

Geriatric Research, Inc.
' •
f
Feb. 12, 1962 filed
162,500 common, of which 12,500 are
to be offered by the
company and 150,000 by stockhold¬

25,

Office—625 Madison

&

Broadway,

& Co., Inc., N. Y.

products, sales promotion and working capital. Office—
88 Cutter Mill
Rd., Great Neck, L. I., N. Y. Underwriter
—J. J. Krieger &
Co., Inc., N. Y.

Design Corp.
1962 ("Reg. A") 65,000 common. Price—$3.
Business—Design and development of new products for

Office—1180 Raymond Blvd.,
Newark, N. J.
Underwriter—Godfrey, Hamilton, Taylor & Co., N. Y.
Offering—Temporarily postponed.
<•/

expansion,

and

Inc.

General

April

Office—111

April 3, 1962 ("Reg. A") 78,000 common. Price—$2.75.
Business—Sale of vitamins through department stores

products, expansion and working capital* Office—
W. Diversey Ave., Chicago.
Underwriter—Michael
G. Kletz & Co., N. Y.

investment.

Proceeds—For

General Vitamin

2555

30, 1962 filed 100,000 class A common shares.
Price—By amendment (max. $11).
Business—Design,
manufacture and distribution of
toys and sporting goods.
Proceeds—For debt repayment Office—184
Fifth Ave.,
N .Y.
Underwriter—Hemphill, Noyes & Co., N. Y.
Garden State Small Business
Investment Co.

clubs."

Classics

investment.

Underwriter—King Merritt

new

Oct. 27, 1961 filed
330,000 common. Price—$3. Business
—A small business investment
company. Proceeds—For

-

General

ceeds—For

1962 filed 105,000 common. Price—$3. Busi¬
ness—Design, assembly and distribution of trophies,
plaques and 'awards.
Proceeds—For- debt repayment,

Inc. V-0'

Industries, Inc.

General Realty Income Trust
April 27, 1962 filed 1,000,000 shares. Price—A maximum
of $10.
Business—A real estate investment trust. Pro¬

March 23,

April 30, 1962 filed 140,000 common.
Price—$4. Busi¬
ness—Operation of discount centers. Proceeds—For exT pansion.
Office—19 W. 34th
St., N. Y. Underwriter—
Preiss, Cinder & Hoffman, Inc., N. Y. Offering—Ex¬
pected in early July.
Gabriel

St., New Haven, Conn. Underwriters—Ingram, Lambert
& Stephen, Inc., and Reuben Rose &
Co., Inc., N. Y. •

Gemco-Ware Corp.

restaurant

Frouge Corp.
Jan. 26, 1962 filed
200,000 common. Price—By amend¬
ment.
Business—Construction and operation of various

49

For debt repayment and investment. Office—348
Orange

March 9, 1962 filed
146,000 common.
ment (max. $8).
Business—A

type apartment, industrial and office
buildings. Proceeds
..

(2801)

&

Co.)

$975,000

'

'

'

.

Continued

on

page

50

50

50

The Commercial and Financial Chronicle

(2802)

Continued from page 49
units

consisting of

Good-Era Realty & Construction Corp.

$100 debenture and 36 shares. Price
—By amendment. Business—Manufacture of restaurant
and other type furniture which it sells principally to
dealers in Puerto Rico.
Proceeds—For equipment and
general corporate purposes. Address—San Juan, Puerto
Rico. Underwriter—Edwards & Hanley, Hempstead, N. Y.
Glastron

a

Boat

Co.

May 4, 1962 ("Reg. A") 33,114
pleasure boats.

Price—At-the-

common.

Business—Manufacture

market.

of

sale

and

fiberglass

Proceeds—For selling stockholders.

Of¬
Underwriter—James

fice—9109 Reid Rd., Austin, Texas.
C. Tucker & Co., Inc., Austin, Texas.

April

filed 550,000 class A shares. Pjrice—$10.
Business—Company plans to develop, operate, construct
and manage real estate. Proceeds—For general (Corporate
purposes. Office—151 N. Dean St., Englewood, N. J. Un¬
derwriters—Leiberbaum & Co. and Morris Cohon & Co.,

Corp. (6/25-29)
23, 1962 filed 150,000 common, of which 60,000
are to be offered by the company and 90,000 by the com¬
pany's parent, Glen Modes, Inc. Price—By amendment
(max. $7), Business—Design, production and sale of
women's fashion accessories, and sportswear.
Proceeds
•—For
general corporate purposes.
Office—417 Fifth
Ave., N. Y. Underwriter—Sprayregen, Haft & Co., N. Y.
Globe

Industries, Inc.
Oct. 30, 1961 filed 200,000 common, of which 100,000 are
to be offered by the company and 100,000 by stock¬
holders. Price—By amendment. Business—Manufacture
of miniature electric motors, powdered metal products
and devices for the missile and aircraft industries.

—Real estate investment.
tal

Donald &

Co., Cleveland. Note

This registration

—

and

N. W.,

was

withdrawn.
Gold Leaf

Pharmacal

1962

13,

Co., Inc.

filed

80,000 common. Price—$4. Busi¬
ness—Manufacture, development and sale of pharmaceu¬
tical and veterinarian products, rroceeds—For advertis¬
ing, research, debt repayment and working capital.
Office—36 Lawton

—Droulia

St., New Rochelle, N. Y. Underwriter
Co., N. Y.
,

&

Continued from page 49

Tabach

Towers

Marts
(W.

Russotto

&

Co.)

Co.,

Langley & Co.)

D.

Blauner

Bruce

&

Co.,

&

-Gourmet

(McDonnell &

United

Co.,

Co..

and

Rose

&

Co.,

Oppenheimer & Co.)

Universal

Hamilton,

(Edward

&

Co.,

Inc.)

Inc

Lewis

Proceeds—For

West

S.

the rate of one share for each 15 rights held of record
June 4, as follows: To common stockholders of Govern¬

(R. F.

(Carroll

Fastpak,

Securities

Co.)

Co.

Wolverine

Co.,

Aluminum
(P.

&

Units

$444,000

26

Corp.)

&

Co.,

Inc.,
&

Sierra

Pacific

Power

(Bids

$297,500

11

,

(P.

Fenner

$5,000,000

Co.)

11

a.m.

28

Saw

Hampshire

EDST)

Mill

River

(Bids

12

Service

Bonds

Malkan

&

$1,575,000

&

Co.,

Inc.

Scientific
Schuss

Co., Inc

&

Co.)

Common

Ellner &

Co.)

150.000

Common

(Searight.

&

Inc

O'Connor.

Inc.)

114,500 shares

Site-Fab, Inc.
(H.

Wiggins

P.

Plastics,

(Investment

&

Co.,

Inc.)

shares

Corp.)

Inc.

and

Triangle

Products, Inc

(Baruch Brothers & Co.,

Common

Mortgage Investors
(Hayden,

Stone

&

Co.)

Ben.

Anchor Industries Corp
(Amber,

it

Burstein

Int.

Common
&

Co.,

Inc.)

$308,000

Arde Inc.

Common
(McDonnell

&

Co.)

100,000 shares

Bernalen, Inc.

Common

"

(Amber.

Burstein

&

Co.,

Inc.)




&

Common
Co.)

$255,000

:

^

$15,000,000

Debentures

:

$12,000,000

'7

&

Common

Co.*

Inc.)

$375,000

Investing

Corp.)

Co.)

Common
i

.V

?

•

.

^

\

!
EDST)

a.m.

-

V7

L_i.

$500,000 >

(Wednesday)
11

Common

$525,000

!

-

-

-—Debentures /-

$7,500,000

"

(Monday)

>

Common
(Globus, Inc.) $750,000

•

& Co.)

&

(Tuesday)

D.

6

Co.)

Inc.)

Arnav Industries,

Common

August 7

Common

V,

received)

$25,000,000

-

Y.

200,000

shares

&

Units

—

Inc.)

Co.,

1,200 units

;

*

w

(Tuesday)

.

August 13

Capital
$750,000

(Monday)

Hydro-Swarf, Inc.
;

(Raymond

-

;

v\

Moore

&

,

Common

————

Co.) : $485,000 \

7

.,

$300,000
-

and

Co.)

Southwestern Bell Telephone Co
Debentures
(Bids to be received) $100,000,000

'

$300,000

Inc

August 20

Common

Dempsey-Tegeler

jshares

450,000

&

Inc.—

(Gianis

shares

Common

Co., Inc.)

Fuller

(Monday)

$200,000

&

—Bonds

Norda Essential Oil & Chemical Co., Inc.—Class A
(S.

—

,

Florida Power & Light Co.
"7 7 (Bids 11:30 a.m. EDST)

Co.)

.

(Monday)

Bruce (Michael)

;

-7-'"".'

Distributors, Inc.

(Gianis

August

27

&

Co., Inc.)

v

(Offering

Common

:

$500,000

(Monday)

Iowa Public Service Co.—.

$50,000,000

to

Common

—

stockholders—Bids

to

be

,

-

received)

7

;■

shares

(Wednesday)
12

noon

September 11

—Equip. Trust Ctfs.

EDST)

$3,540,000

Southern

(Tuesday)

Railway Co.—Equip. Trust Ctfs..-:
.(Bids

12

noon

EDST)

(Monday)

Coatings Corp

-Common

(Arnold Malkan Growth of Puerto Rico, Inc.)

Continental Telephone Co
(Allen & Co.

and

E. F.

November 7

$375,000

& Co.)

475,000 shares

Bonds

$23,000,000

Georgia Power Co.*——**r_Preferred

General Investment Co. of
Connecticut, Inc.—Com.
(Ingram, Lambert

'

—_—

(Bids to be received)

Common

Hutton

$9,450,000

(Wednesday)

Georgia Power Co,

(Bids

to be received)

$7,000,000

& Stephen, Inc. and Reuben Rose & Co., Inc.)

November

$1,500,000

Berne of California, Inc
(Adams

$183,750

July 16
Chemical

shares

Bonds

received)

320,468

(Bids

$19,500,000

be

(Cortlandt

.

$562,500

50,000

Atlantic Coast Line RR.„

Inc.) $400,000

:

July 31
Common

Colket &

.

July 11

to

.

",y.

Common
.Sons)

Inc.)

be

to

■■

r

\

:

Barogenics, Inc.

/Tuesday) ,-V7,v
(Bids

7

July 30

New England Telephone & Telegraph Co.—Debens.

$100,000

"

•

150,000

'

EDST)

a.m.

(Gianis

July 25

$325,000

__

Inc.)

Polonitza,

Co.,

11

(Bids

Common

Blosser & McDowell
&

July 10

Common
Group,

/Monday)

Admiral Automotive
American

135,000

Inc

Planning
Investors

July 2

(Straus,

Curtis)

Atlanta Gas Light Co

shares

Moore

Sampson Enterprises,

Common
Black

.7

Common

,

Dowd

$9,450,000

Equipment & Plastics Corp

$600,000

Jaap Penratt Associates, Inc
(R. F.

Common

:,f

Preferred

&

Co

Markets, Inc.—
v'7- '
'/i (Moran &

"

$690,000

,

&

EDST)

noon

Jackson

(Monday)

.

,

\

Common

Co.)

&

Co

(Garat

Common

Ahalt

.

550,000 shares

Inc.)

Frederick's of Hollywood, Inc.—

shares

Pike, Inc

Laboratories,

July 23

.

Corp

(Raymond
&

"

'

(Thursday)
(Bids

Common

Associates, Inc
Mfg.

Bonds
'

Equip. Trust Ctfs.

Rochester Telephone Corp

..August

(Glanis

(Reed, Whitney & Stonehill, Inc.) $300,000

Joanell

Barish

Dyna

Fuller

(Bids

$500/000

Penington,

Co.,

Garrett

$300,000

American Bolt & Screw Mfg.
Corp
D.

Chemical

—;

$6,000,000

(Wednesday)

July 19

(Monday)
(Robert

(Friday)
'S.

Alcolac

170,000 shares

received)

Atlantic City Electric

•

Common

Corp

and

&

*

'

Class A
&

Controls
Co.,

$1,000,000*

United

Aviation, Inc.-

July 9
Capital

(John

June 29

"

Common

(White

(White, Weld & Co.)

Brunswick

July 18

$200,000

Industries, Inc

(Stroud

be

12

(Paine, Webber,

National

1

Corp

Inc.).

Electromagnetics Corp.

Plant Equipment Corp

Tactair Fluid

Polonitza,

to

(Bids

.

.

Weld & Co.)

Spears (L. B.), Inc

Sternco

&

Southern Railway Co

$350,000

Inc.)

Co.,

$10,000,000

(Tuesday)

;

Equip. Trust Ctfs.

CDST)

Microdot, I—
New

Inc.)

Co.)

Co.)

Common

(Bids

Common
&

Class A

Leiberbaum &

and

Missouri Power & Light Co.—

Common
Co.,

Malkan

Co.

200,000 shares

(Pacific Coast Securities Co.)

Walston

RR

noon

July 17

$1,000,000

Corp
&

&

page 51

V.

Industries, Inc.-

(Arnold

$24,000,000

Cohon

(Garat

Debentures

Gilhart

D.

on

(Louis) Enterprises, Inc

(Morris

Valu-Rack, Inc.

Common

(Andresen

(Thursday)

Gulf, Mobile & Ohio

Cc.)

Co.)

90,000

June

Lesser

Units

Co

Electronics

164,000 shares

Public Service Co. of New
(Bids

&

Price—By amend¬

common.

Continued

(Joseph W. Hurley & Co.) $208,980

Common
&

'

shares

542,000

(Arnold Malkan & Co., Inc.)

Co

(Putnam

50,000 units

Raceways, Inc
Brooks

/

Insurance Co.

April 13, 1962 filed 381,600

Units

Sokol Brothers Furniture
Co., Inc

Bonda

EDST)

Co.)

Estate Investment Trust,

Western Power & Gas Co

Interonics, Inc

(Wednesday)

Board

W.

&

Place, Baltimore. Underwriter
formerly was known as

$286,875

(Offering to stockholders—underwritten by White,
$5,800,000

Orion

Real

Eastern

Common

(Albion Securities

Co

a.m.

Inc.)

Investment Trust

ment (max. $5).
Business—Company plans to Write cer¬
tain types of fire and casualty insurance. Proceeds—For

shares

__

Loeb

Nopco Chemical

Preferred

Lynch, Pierce,
$15,000,000

200,000

Securities.

Estate

,

Co

(Kuhn,

Skiers

Merrill

Co.)

(Hayden, Stone & Co.)

Steel

June 27

Colonial

and

Smith Inc.)

&

——

Kenner Products

(A.

Common"

Investors

Continental

Common

(Sunshine

(Arnold

Puget Sound Power & Light Co
(Blyth

Brooks

Kavanau Corp.

(Tuesday)

(R&D

W.

Real

ment. Office—530 St. Paul

$250,000

Honora, Ltd.

100,000 shares

Lockfast Mfg. Co., Inc

Continental

-

(P.

^

—To be named. Note—This firm

First Connecticut Small Business Investment
Co.
Common

RF
June

Great

$625,000

-

Ltd.

Aug. 3, 1961 filed 300,000 shares of beneficial interest.
Price—$10, Business—Real estate. Proceeds—For invest¬

-Common

(McDonnell &

Common

Co.)

Inc.)

Co.,

Inc.)

Co.,

<

„

Co.,

ceeds—For general corporate
purposes. Office—250 Park
Ave., N. Y. Underwriter—Allen & Co., N.

Common

Eisenberg
&

Development

$300,000

Mammoth Mart Inc.

$300,000

Corp

Winckler

J.

Inc.)

Paul

Malkan

Lewiston-Gorham

Shopping Center Limited
Partnership
&

and

(Arnold

Baltama

common., Price r— By amend¬
ment. Business—Sale and development of land on Grand
Bahama Island for residential and resort purposes. Pro¬

Class A

Co., Inc.)

Inc.

West Falls

'Hodgdon

Dowd &

Equipment Corp

de¬

(7/16-20)-;K

Common

Corporate Funding Corp.Dunhill Food

subord.

conv.

in 1,200

Jpn. 23, 1962 filed 250,000

(Rittmaster, Voisin & Co. and Midland Securities Co., Inc.)
72,000 shares

-

$500,000

Office—

Government Employees Financial Corp,
Aug. 17, 1961 filed 603,000 common being offered for
subscription by stockholders of affiliated companies at

Common
Coast

Ave., Portland, Ore.
,\V7-::-;'

selling stockholders.

■},■'■

be offered

Underwriter—Midland Securities Co., Inc., Kansas

Great

Common
Inc.)

Co.,

Vendex, Inc.
(Pacific

10th

St., Anaheim, Calif.

Inc.) "

$306,000

cisco,

•

Common

Taylor

Industries,

Southeast

/;•

$600,000 of 6%

units. Price—
$500 per unit. Business—rOperation of jewelry stores,
jewelry concessions and a liquor concession in discount
department stores. Proceeds—For debt repayment and
working capital. Office—182 Second Ave., San Fran¬

Inc.

Underwriter—Cruttenden & Co., Inc., 618 S. Spring St., Los Angeles.

450,000 shares

Packaging Co., Inc

(Godfrey,

Office-—915

land Hotel.

Common

and

Products,

'

1962 filed

bentures due 1977 to

-

—Class A

Reuben

Granco, Inc.
March 23,

Grand

Food

Gourmet Restaurants, Inc.
April 30, 1962 ("Reg. A") 28,213 capital shares.
Price
—$3.50. Business—Operation of restaurants in Disney¬

$1,590,000

Inc.)

writer—None.

City, Mo. Offering—Expected in July.,

>;;S-;7-':/7;;;

Underwriter—Darius Inc., N. Y.

*77
Common

Corp.
Inc.

Ni Y.

t"

ment.

$1,200,000

United-Overton

common.

paper.

May 25, 1962 filed 100,000 common. Price—$4.50. Busi¬
Growing, purchasing, distributing and selling
whole potatoes and processing and selling of prepared
potato products. Proceeds—For a new plant and equip¬
ness

Capital
shares

!

Inc.

of

—Van Alstyne, Noel & Co.,

Common

550.000

Tujax Industries, Inc
(Richard

.

Price-r-$ll, Busi¬
Proceeds—Expansion and
working capital. Office—Lyons Falls, N. Y. Underwriter

$360,000

Trans-Alaska Telephone Co.
(Milton

4

(6/25-29)

Paper Co.

Sept. 28, 1961 filed 140,000

$300,000

Inc.)

International, Inc
C.

Underwriter—Rouse, Brewer.

Thursday, June 14, 1962

.

ment Employees Insurance Co., two rights for each share
held; to common stockholders of Government Employees
Life Insurance
Company, one right for each share held;
to
common
stockholders
of
Government
Employees
Corp., four rights for each share held, and to common
stockholders of Criterion Insurance Co., ope right for each
share held. Rights will expire June 29. Price—$7:50
Business—A consumer finance company. Proceeds—For
working capital. Office—1700 Broadway, Denver. Under¬

ft St.,

Bryant, Inc., Washington, D. C. Offering—Ex¬
in September.
/
V : '

ness—Manufacture

Common

(Packer-Wilbur

Office—1707

purposes.

Consumers Mart of America, Inc

Thompson Manufacturing Co., Inc

Business

&

Gould

:

Industries, Inc
(Costello.

corporate

Washington, D. C.

pected

1445

March

other

Price—$6.

Proceeds—For working capi¬

Pro¬

ceeds—For debt repayment and working capital. Office
—1784 Stanley Ave., Dayton. Ohio.
Underwriter—Mc¬

in July.

Gotham Investment Corp.
Nov. 21, 1961 filed 100,000 common.

Becker

Glensder

1962

N. Y. Offering—Expected sometime

March

•

2,

.

.

Grand Bahama Development
Co., Ltd.—
(Allen &

Co.)

250,000

shares

Southern Electric

Common
:i. —

J.

28

■

'

■

;

,

.

...

(Wednesday)
Generating Co

(Bids to be received!

$6.500000

.Bonds

Volume 195

Number 6168

Continued from page 50

.

.

,

(2803)

The Commercial and Financial Chronicle

i-\

working

51

Office—4344 E. Indian School Road,

capital.

general corporate purposes. Office—116 John St., N. Y.
Underwriters—Emanuel,. Deetjen & Co., and Zuckerman,,
Smith & Co., N". Y.
-'v7-

housewares, hardware; lighting fixtures,^ automotive
accessories,, etc. Proceeds--For debt repayment,, expan¬
sion
and
working capital.
Office—-1416 Providence
Highway, Norwood, Mass;. Underwriter—McDonnell &
Co., Nv Y. Offering—Temporarily postponed.

• threat Plains
Corp.
1
March 26,1962 ("Reg. A") 60,000 class A common. Price

Dec.

ceeds—For debt repayment, equipment* advertising

*—Company plans to own and operate an amusementpark. Proceeds—For property development, advertising,
and working capital. Office—3100 Tremont Ave.* Cheverly, Md. Underwriter — Switzer & Co.* Inc., Silver
Springs* Md. Offerings—Imminent. >

working capital. Address—P. O. Box 430, Phoenixville,

,

'

•

—$5.

Business-T-Cqmpany. plants,to, establish an, industrial
bank and an insurance* agency., Proceeds-^-For. workingcapital,' debt repayment and expansion. Office—368 Main
St., "Longmont,Colo. Underwriter—Birkenmayer 8c Co.,

Denver.
;

;

Offering—Imminent.

.

,

Greater New York Box Co., Inc.

•

Dec. 29,

1961 fil^d , 100,000' coipmonv Prlcftr—By amend*
mentf ($7 max.). Business—Manufacture of corrugated
board and containers. Proceeds—For general corporate
purposes. Office-^149 Entilr Rd., Clifton. N. J. Under¬
writer—D. H. Blair & Co., N. Y. Offering—Temporarily
postponed..>
•- ■ -.
'• - ■. ..%■ //■; ■ -: •'v

Price—$4. Busi¬
ness—Design, production arid? distribution of belts and
related products. Proceeds—For sales promotion, expan--;
sion, inventory, and debt repayment. Office—476 Broad¬
way, N. Y. Underwriter—Finkle & CO., N. Y. Offering—

Bxpected in August.

Pittsburgh Capital Corp. I y
*
^
NoV. 14,. f961-; filed 250,000 common. Price—$11; Biisf- T
ness—A small business investment company. Proceeds—
For investment. Office—952k Union Trust Bldg., Pitts¬
burgh. Underwriters-^—Moore; Leonard' fy Lynch and Sin- ;
ger, Dean 8c Scribher, Pittsburgh. Offering—Postponed.

.5. •"

,

Green

Instruments I he* ;
April 30, 1962? filed 150,000 common." Price—$2.25. Busi¬
ness-Manufacture pf precision instruments for measuring: atmospheric conditions: Proceeds—For debt repay¬
ment, equipment and working capital.
Office—2500
Shahxes Dr., Westbury, L. I., N. Y. Underwriter—None.
Greenman

Bros.,

Inc.

.

"

7

7

^

—For

debt

repayment, inventory and working capital.
Engel St., Hieksville, N. Y. Underwriter—J.
R. Williston 8c Beane, N. Y.

Price—By amendment (max. $30>.

Equipment Corp.

•

Harwyn Publishing Corp.
Jan. 29, 1962 filed 300,000 class A

Hawaii.

v

Chicago.

illustrated

Investment Trust

•

^

16;

375 Park

/

nance

■

^r
.

.

-

convertible

Milk

St.,

policies and
Under¬

Boston.

• Ideal
Toy, Corp.
May 1, 1962 filed 490,000 common, of which 250,000 will
be offered by company and 240,000 by stockholders. Price

—By amendment (max. $20). Business—-Manufacture of
toys and related products. Proceeds — For debt repay¬
ment and general corporate purposes. Office — 184-10
Jamaica Ave., Hollis, Long Island, N. Y. Underwriter—
White, Weld & Co., Inc., N. Y.
Illinois Bell Telephone Co. *
V
May 11, 1962 filed 3,771,577 common being offered for
subscription by stockholders on the basis of one new
share for each 10 shares held of record May 29:, 1962.
Rights will expire June 29. A. T. 8c T., holder of 99.32%
of outstanding stock, will subscribe for its pro rata share
of the offering. Price—$20. Proceeds—For debt repay¬
ment and general corporate purposes. Office—212 W.
Washington St., Chicago. Underwriter—None.
Income Properties, Inc.

May 18, 1962 filed 200,000 class A shares and three-year
warrants to be offered in units consisting ot one class A
and one warrant.
Price—By amendment (max.

share

$12 per class A share). Business—Real estate investment
and

construction.

pansion

Proceeds—For

and working

Rd., Brooklyn, N. Y.
Chatkin, Inc., N. Y.

debt repayment, ex¬
capital. Office—1801 Dorchester
Underwriter—Crow, Brourman 8s

Index

& Retrieval Systems, Inc.
1962 filed 125,000 corriirion. Price—By amend¬
Business—Publishes "The Financial Index" and

Jan. 29,
other

indexes and

abstracts.

Proceeds—For equipment,

promotion, office relocation, and working capital. Office
—19 River St., Woodstock, Vt.
Underwriter—Searight,
Ahalt & O'Connor, Inc., N. Y. Offering—In July.
Industrial Growth Fund of North America, Inc.

April 20, 1962 filed 100,000 common. Price — Net asset
value (max. $11.50). Business—A closed-end investment
company which plans to become open-end in 1963. Pro¬
ceeds—For investment. Office—505 Fifth Ave., N. Y.
Distributor—Industrial Incomes Inc. (same address).

Co., Inc.
due

Holiday Mobile Home Resorts, Inc.
Jan. .31* 1962 filed 3,500,000 common and 5-year war¬
rants to purchase 700,000 shares, to be offered in units
of 5' shares and one warrant. Price—$5Q per unit. Busi¬
ness—Development and operation of mobiie home re¬
sorts. Proceeds — For debt repayment, expansion and

automobile insurance

Office—164

Hydro-Swarf, Inc. (8/13)
30, 1962 filed 97,000 common, of which 80,000
will be sold by company and 17,000 by certain stock¬
holders. Price—$5. Business—Manufacture, assembly and
sale of aircraft and missile components on a sub-contract
basis. Proceeds—For debt repayment and working capital.
Office—7050 Valley View St., Buena Park, Calif. Under¬
writer—Raymond Moore & Co., Los Angeles.

ment.

Wis. Offering—Indefinitely postponed;
;

loans.

March

common.
Price—$5.
barbecue machines and

debentures

None. Note—This

writer—None.

-

subordinated sink¬
1977 and 25,650
common shares* to be offered in units consisting of one
$500 debenture and 50 common shares. Price—$1,000 per
unit. Business — Manufacture of liquid and semi-solid
rsalrid dressings and specialty sauces.. Proceeds—For debt
repayment and expansion. Office—109 S. Webster St.,
Madison, Wis. Underwriter—Milwaukee Co., Milwaukee,
fund

premiums of

business

Feb. 28, 1962 filed $250,000 of 6y2%

ing

—

withdrawn.

60,000 common.
Price—$5.
Business—A general finance company. Proceeds—To fi¬

1961 filed 2,265,138 common to

Hoffman House Sauce

was

Hyde Finance Co.
28, 1962 ("Reg. A")

writer—None.

—
For a new building; and
working capital; Office—350* Cahuega Blvd., Los An-'
geles. Underwriter—Carl M. Loeb, Rhoades 8c Co., Inc.,

Ave., N. Y. Underwriter

May

be offered for
subscription by stockholders of Union Bank of Califor¬
nia on a share-for-share basis. Price—$3. Business—A
.management irivestmerit company.
Proceeds—For in¬
vestment. Office—760 S. Hill St., Los Angeles.
Under¬

and .commercials. Proceeds;

29,

registration

Hill Street Co.

Oct.

(E. L.)

Associates, Inc.
1962 filed 50,000 common. Price—Net asset
value per share plus 2%.
Business—A closed-end in¬
vestment company. Proceeds—For investment. Office—

Inc.

of

Hutton

March

23,300

manufacture

-

PI., Irwindale, Calif. Underwriter—
Bateman, Eichler & Co., Los Angeles.

Underwriter—To be named.

Hanna-Barhara Productions, Inc.




Pro¬
Office—137 N. Wabash
Underwriter—Hornblower
& Weeks,

stockholders.

Office—15855 Edna

High Temperature Materials* Inc.
Sept. 28, 1961 filed 120,000 common. Price—By amend¬
ment.
Business—Manufacture
of products from
test
models.
Proceeds—For equipment, research and devel¬
opment, leasehold improvements, repayment of debt and
working capital. Office—130 Lincoln St., Brighton/ Mass.

Dec. 29, 1961 filed 200,000 capital shares. Price — By
amendment* Business-YProduction of television cartoons

Price^By amendment. Business—Retail sale of

-

which company has acquired in Southern Calif. Proceeds
—For debt repayment and other corporate purposes.

Proceeds—For equipment, inventory,
promotion, expansion and working capital. Office
-10-20 47th Rd., Long Island City, N. Y. Underwriter—
J. B. Coburn Associates, Inc., N. Y. Offering—Indefinite.

investment. Office—
Underwriter—Fulton,

v
Jarr.' 26, 1962 filed 200,000* commori, of which 100,000
are*to be offered by the company and 100,000 by a stock¬

(6/18)

—

saies

Reid 8c Co., Inc., Cleveland.

y-,>y....yy

Vision* Inc.

Business—Construction of homes and apartments on land

aiued equipment.

Hampden Fund, Inc. (6/25-29)
•
24, 1962 filed 500,000 common. Price—$10. Busi¬
closed-end investmerit, trust which plans to

Distributors, Inc. '*

general

Corp.
30, 1962 filed $1,600,000 of convertible subordi¬
nated debentures due 1977 and 250,000 common shares.
Price
By amendment (max. $6 per common share).

Hickory Industries, Inc.
31, 1961 ("Reg. A") 40,000

ness—A

holder.

28, 1962 filed

Helix Land Co.,

Jan.

■

common.

Publishes

Aug.

1962 filed 79,500 common. Price—$4. Business
—Manufacture, packaging and sale of proprietary drug
products. Proceeds—For debt repayment, expansion and
other corporate purposes. Office—1827 Pacific St., Brook¬
lyn, N. Y. Underwriters—Packer-Wilbur 8c Co., Inc., and
Alessandrini 8c Co., Inc., N. Y. Offeringr-Jn late July.

—Expected in July.

Aver,

Underwriter—White, Weld & Co., Inc., N. Y.

Business—The

March 30,

July 28,-1961 filed 700,000 common sharer Price-^$I.
Business—The* marketing of gifts, candies and greeting
cards through franehised dealers; Proceeds-*For equip¬
ment, inventory and working capital Office—Tenth
Ave., S., Hopkins, Minn. Underwriter—None. Offering

Proceeds—For

Securities, Inc., Rego Park, N. Y.

ceeds—For selling

'

-;r-V

•

S.

manufacturer and distributor of optical equipment.

St. Louis.

100,000

the company and 200,000- by a stock¬
holder. Price—By amendment. Business—Manufacture
of recessed incandescent lighting fixtures. Proceeds—
For general corporate purposes.
Office—Chicago, 111.
Underwriter—R. W. Pressprich 8c Co., N. Y. Offering—
Temporarily postponed.
:
*

Happy House, Inc.

House of

Herlin & Co., Inc.
May 29, 1962 filed 100,000 common, of which 80,000 are
to be offered by company and 20,000 by stockholders.
Price—By amendment (max. $12.50). Business—Sale of
wrist watches to holders of food chain, cash register
tapes. Proceeds—For working capital. Office—2046 Bell
Ave., St. Louis. Underwriter—Newhard, Cook & Co.,

sold by

'

U.

March 29/1962 filed 150,000 commori. Price—By amend¬
ment (max. $17). Business—A dispensing optician and a

:

Halo

.■>

the

■"; ^
Inc.
March 29, 1962 filed 75,000 class A common. Price—$5. Y
Business—Importing of Japanese liquors. Proceeds—Fur
debt repaymerit, advertising, inventory
and working
capital. Office—129 S. State St., Dover, Del. Underwriter
—P. J. Gruber 8e Co., Inc., New York. ' v--./ -r.;/--:

1962 filed 586,000 capital shares. Price—By
(max. $5). Business—General real estate.
Proceeds—For general corporate purposes. Office—4265
Summit Dr., La Mesa, Calif. Underwriter—None.

purchase 25,000 common at $1 per share to be offered in
units consisting of a $10 debenture, 8 common shares and
one warrant. Price—$18 per unit. Business—Extraction,
processing and sale of rock and sand. Proceeds—For a
new plant arid other corporate purposes. Address—Hal¬
landale, Fla. Underwriter—Mutch, Khanbegian, Flynn &
Green, Inc.. 115 Broadway, N. Y.

open end.
Proceeds—Fof
2100 East Ohio Bldg., Cleveland.

in

House of Koshir,

amendment

become

distribution

writer—-Sunshine

April 27,

March 30, 1962 filed $250,000 of 8% subordinated deben¬
tures due 1977, 200,000 common and 6-year warrants to

.

their

corporate purposes.-Office—42 W. 48th St., N. Y. Under¬

shares of 5% convertible
preference stock to be offered for subscription by stock¬
holders on basis of one preferred share for each 10 com¬
mon
held. Price—$12. Business—KeaK estate. Proceeds
—For general corporate purposes and debt repayment.
Office—40 Beaver St., Albany, N. Y. Underwriter--None.

Hallandale Rock & Sand Co.

Hardlsties

—

Heartland Development Corp.
March

^ Heck's Discount Centers, .Inc. :V'; •:
1962 filed 125,000 common. Price—By, amend¬
ment (max. $5). Business—Operation of discount stores.
Proceeds—For inventory, expansion, debt repayment and
working capital. Office—6400 MacCorkle Ave., S. W.,
St. Albans,
W. Va.
Underwriter—Willard Securities,
Inc., N. Y.
Y-

•

Business

May 18, 1962 filed 1,000,000 shares of beneficial interest
and eight-year stock purchase warrants to be offered in
units consisting of one share and one warrant.
Price—
$10 per unit. Business—A real estate investment trust.
Proceeds—For
working
capital.
Address—Honolulu,

June 7,

-

Honora, Ltd. (7/2-6)
20, 1901 ("Reg. A"> 76,500 common. Price—$3.75.
Business—Purchase of cultured pearls in Japan and

Nov.

Indefinite.

(6/25-29)
Feb. 28, 1962 filed $10,000,000 of 6V2% conv. subord.
debentures due 1977. Price—At par. Business^—Company
is engaged in the development of planned communities
in Florida. Proceeds—For debt repayment and general
corporate purposes. Office — 557 Northeast 81st St.,
Miami*.: Ela« Underwriters — Morris Cohon 8c Co. andStreet 8c Co., Inc., N. Y. »
.//■/■Y'-v •'v"-

N. Y.

Price

— By
encyclo¬
pedic works for children and operates an advertising
agency for sale of TV and radio spot time. Proceeds—
For working capital. Office—170 Varick St., N. Y. Un¬
derwriter—Van Alstyne, Noel & Co., N. Y. Offering—

Gulf American Land Corp.

•

(max. $16).

Hawaii Real Estate

Halsey Drug Co.

Co., Philadelphia. Offer¬

Hunsaker

Price—By amend¬
Business—Operation of supermarkets
and
small food stores.
Proceeds—For
selling stock¬
holders. Office—175 Humboldt St., Rochester, N. Y. Un¬
derwriter—Merrill Lynch, Pierce, Fenner & Smith Inc.,
New York. Offering—Expected sometime in August.

ment

amendment.

of which

8c

and

March

>

common,

Underwriter—Harrison

terminating products; Pro¬

ing—Temporarily postponed.

Hart's Food Stores, Inc.
March 28, 1962 filed 235,550 common.

New York.

Lighting, Inc.
27, 1962 filed 300,000

Pa.

Chicago.

Office — 6400 Chillum Place, N. W.,
Washington, D. C. Underwriter—Shell Associates, Inc.,

be

less terminals and other wire

(Paul) Stores* Inc.
See Paul, Harris Stores, Inc.

ated dry cleaning and laundry establishments. Proceeds-

will

Proceeds—

Karris

—For expansion.

Mar.

Govt.

Equipment, plant expansion and working capital. Office
—320 Park Ave., Worcester, Mass^ Underwriter—Shearson, Hammill & Co., N. Y. Offering—Temporarily post¬
poned.
; ',. .7'^ '>/;■■■ 't;<

May 28, 1962 filed 100,000 common. Price—$3. Business
—Furnishing of equipment for operation of coin-oper¬

I

Hollingswortlt Solderless Terminal Ce.
1962 ("Reg. A") 75,000 common; Price— $4.
Business—Manufacture, sale and development of solderFeb. 27,

Business—^Manufac-

.ture and sale of M-14 rifles to U. S.

Office—35

Gruman-Bond

Harrington & Richardson, Inc.

Mafch 7, 1962 filed 180,000' common, of which 40,000 are.
to be offered by company and 140,000 by stockholders.

(Henry X.)

April 25, 1962 filed 150,000 common, of which 75,000 are
to be offered by company and 75,000 by stockholders.
Price—$10. Business—Wholesale and retail distribution
of toys, hobby lines and sporting equipment. Proceeds

Harley.Products* Ine*

March 28, 1962 filed 75,000 common.

.

Greater

Y

Hargrove Enterpriser, fnc*
8, 1961 filed 160,000 common. Price—$5. Business

Phoenix/Underwriter—None.

Industry Capital Corp.

26, 1961 filed 500,000 common. Price—$15. Busi¬
ness—A small business investment company. Proceeds—
Dec.

For general corporate purposes.
■f

Office—208 S. La Salle
& Co., Chicago.

St.. Chicago. Underwriter—A. G. Allyn
Offering—Indefinite.
Instromech Industries, Inc.

March 30, 1962 ("Reg. A") 100,000 common. Price—$3.
Business—A contract manufacturer of precision products.

Proceeds-^For acquisition of land

and building, equip¬

ment, inventory and other corporate purposes. Office-*
Cnntiniied

nn

naae

52

^ww*r«w*iwwwiwi«iiwiwi n

registered

51

were

Business—Company-was> formed to -construct the
Hilton" at Tel Aviv, Israel. Pro¬
ceeds—For general corporate purposes.
Office—229
South State St., Dover, Del. Underwriter — American
Isiuel Basic Economy Corp., New York City.

Huntington Station, N. Y*. Under-,
N. Y. Offering—Late July.

Plaza,

Broadway

par.

luxury hotel "Tel Aviv

writer—Price Investing Co.,
Instron

Engineering Corp.

amend¬
produc¬
in testing the physical char¬

March 26, 1962 filed 120,000 common. Price—By
ment (max. $14). Business—Development and
tion of

(6/18-22)

Drug & Surgical Corp.

150,000 class A shares. Price—$4.
licensing, and manufacturing of
pharmaceutical and medical instruments. Proceeds—For
working capital and other corporate purposes, Office—
375 Park Ave., N. Y. Underwriters—Seymour Blauner
Co., and Wm. Stix Wasserman & Co., Inc., N. Y.
March

23, 1962 filed
Business—Importing,

Plastic

International

& Co.,

March

200,000 common.
Price—$2.50.
plastic products produced by
thermoforming.
Proceeds—For equip¬

and

•

Protein Corp.

International

Office—818—
Sudler & Co.,

(6/25-29)

shares.

N. Y. Note—This firm formerly was
Corp.
|

$110

(max.

amendment

•

per

Research

Corp.

15,

1962

Terrazzo

Co., Inc.
75,000 common.

A")

("Reg.

For

equipment,

other

New

.

Proceeds—

use

etc.

Interstate Equity

(6/25-29)
30, 1962 filed 1,605,100 shares of beneficial interest.
Price—(max. $10). Business—A real estate investment

Conditioning Corp.

Price—$4. Business
co-production of foreign

common.

domestic feature films. Proceeds—For acquisition,
co-production, dubbing, adaptation and distribution of
films, and working capital. Office—1776 B'way, N. Y.
Underwriters—General Securities Co.. Tnc./ and S. Kasr

.

Richter

a

purposes.

No.

—A

real

estate

struction

and

investment

trust.

investment.

'

Ave., N. W., Washington, D. C.
•

lona

repayments
Office—901
—

stockholder.
P r i c e—$6.
Business—Manufacture
household electric appliances and electric motors. Pro¬
•

ceeds—For

new

products and working- capital.. Office"
—Regent St., Manchester, Conn. Underwriters—Richard
& Co., Inc., and Reuben Rose
& Co., Inc., N. Y.

Feb. 28.

1962

International, Inc.

debentures due

$4,036,000 of 6V2% sinking fund de1980-86 and 40,360 common
(with war¬

rants) to be offered for sale in units of
ture

and

10

common




$1,000 deben¬
(with 20 attached warrants). Also
one

:/

1
;

,

j

AAA

<

;
,

;/

:

.

1

•
-

..

28, 1962 filed 262,500 common, of which 112,500
by the company and 150,000 by stockholders. Price—By amendment; (max. .$12)/ Business—
The operation of garages and parking stations; renting
and leasing of cars; cleaning and maintaining of commercial buildings and conducting of funerals.
Proceeds
—To buy additional automobiles.
Office—111 W. 50th
St., N. Y. Underwriter—Bear, Stearns & Co., N. Y.
:
to be offered

Kohnstamm & Co.,lnc....

(H.)
Feb. 21

1962 filed leO^Oa&^mmon/ Price—

ment; Business—Manufacture

food,

drugs

of colors

-

-

;
,y

.. .

■

■■

V

.

:
..

.

*

By amendfor

;■•*.,

and flavors

-

arid cosmetics; also > industrial' chemicals.
general corporate purposes. Office—161
Y. Underwriter — Kidder,

Proceeds—For

of the Americas, N.

Avenue

Peabody & Co., Inc. Offering—Temporarily postponed.

Kollmorgan Corp..,
•.;
;'A
Nov. 9, 1961 filed 100,000" common, of which. 40,000 are
82,500 are-;*
to be sold by* the company and 60,000 by stockholders^
stoekhold-*
Price—By amendment: Business—^Manufacture of op- -n i
ers. Price—By amendment. Business—Development of n
tical equipments Proceeds—For debt repayment. Office •>' 4'.:-.,. /
simulated weapons training devices for U. S.- Armed"1
—347 King St.. Northarnntnn. Mass
Underwriter—Put- ...
Forces and the manufacture of electronic control equip¬
nam & Co., Hartford. Offering—Temporarily postponed.
ment. Proceeds—For general corporate purposes. Office

Laboratories,

,

....

Inc,. (6/29) aw'

-

Corp.
29, 1962 filed 140,000 common, of which 70,000:'
are to be offered by company and 70,000 by stockhold¬
ers.
Price—By * amendment '(max;
$10).
Business—~
Reclamation of metallic* from- steel- slag^ mining of sand-,
and gravel; and dismantling and salvage of industrial
buildings.;. Proceeds—For new - plants;- debt repayment t
and. working capital.. Office—6272
Canal. Rd., Clever,
land.
"Underwriter—Robert L. v Ferman & Co., Inc., -

>

*

,

Miami, Fla.

Kapner,
March

filed

Corp./ N. Y.

Kinney Service Corp.. (6/19):

are

of

Kraft

29,

ness—Mail

order

sale

of

subord. deben- •

conv.

,

tures, due 1972, and 150,000 common to be offered in
consisting of a $300 debenture and 200 shares. -.

Price—$5.

merchandise.

Busi¬

Proceeds—For

equipment and working capital. Office—1924 Washing¬
ton Ave., Bronx, N. Y. Underwriter—Arnold, Wilkens &
Co., Inc., N. Y.

<

.

.

units

Price-—$900
bution
.

of

per

unit.

sesame

Business—Processing and distri-;

seed.

Proceeds-—For-accounts.receive.

able/ inventories, plant expansion and working, capital^.
Office—2301 N. Main St., Paris, Texas.
Underwriters—
-John A. Dawson & Co./and-Leason
•

& Co., Inc.,.Chicago*.

Realty & Construction Corp..

Kreedman

-

;
-

^- *

.

-

.

April 19, 1962 filed $5,000,000 of cony; subord. deben-^ ■«■**-and 200,000 common shares to be offered

of debentures and one common
amendment (max. $27).
Business—
operation of office buildings. Proceeds
repayment.
Office—9350 Wilshire Blvd.,

in units consisting of $25

Inc.

(6/25-29)
1962 filed 50,000 common.

Sesame Corp.

(John)

May 24, 1962 filed $225,000 of 6%

tures due 1982

Bruce

Israel Hotels

?

March

"

Kaiser-Nelson

-

a
of

Securities

Indefinitely postponed.

March

Manufacturing Co.* (6/25-29)"

? he offered by the company and 15,000 shares by

:

.

Atlanta, and J. C,'Bradford & Co., Nashville. Offering—

•

i

.

2, North Lebanon Township,

Kingsberry Homes Corp. ;AAv; A/?
iV
April 9,-1962 filed 140,000 shares of capital stock of
which 100,000 will be offered by company and 40,000
by stockholders. Price—By amendment (max. $17.50).
Business—Manufacture of prefabricated homes. Proceeds
■—For a new plant. Office—1725 S. Gault Ave., Ft. Payne,
Ala. Underwriters—The Robinson - Humphrey Co.. Inc.,

Dorsa Ave., Livingston, N. J. Underwriter—Searight, Ahalt &• O'Connor, Inc., N. Y.
.

Connecticut

«*an- 26> 1962 filed 140,000
common, of which 125,000 are

;

($5.25)., Business—Operation of three retail dis- : :
expansion, Address—R. D..AA -

derwriter—Underhill

—102

Business
Proceeds—For con¬

Underwriter—None.

.

~

Dec. 21, 1961 filed 114,500 common, of which
to be offered by the company and 32,000 by

Price—$10.

Office—3315

-

Lebanon,. Pa.. Underwriters—Suplee, Yeatman, Mosley Co.* Inc* and ^Woodcock, Moyer, Fricke & French, Inc., Philadelphia.... ,

Office-r-514

Products Corp.

Joanell

Scherck,
Co., and Dempsey-Tegeler & Co., Inc., St. Louis.

Investors Realty Trust
May 31, 1962 filed 200,000 shares.

;

317,000 by stoekholdPrice—By amendment (max. $24). Business—Manu-

count stores,. * Proceeds^For

products. Proceeds—For redemp¬
2,910 $50 par preferred shares, expansion, and
working capital. Address — Route 286, Saltsburg, Pa.
Underwriter—Arthurs, Lestrange & Co., Pittsburgh.

.—A

debt

■

(7/2-6)

to be offered by company and

ment

frozen meat and meat
tion

For

Co.

Keystone Discount Stores, Incw; i
'AyA;:May 24, 1962 filed 110,000 common. Price—By amend/

Jiffy Steak Co.
'
5,'1962 filed 65,000 common. Price—By amend-'
ment.
Business—Processing, packaging and sale
of

Investment Securities Co.
March 16, 1962 filed 250,00U
common, of which 125,000
are
to
be offered by the
company and
125,000

possible expansion.
Louis. Underwriters

Products

New York.

Feb.

Office—818 17th St., Denver.

Proceeds—

•

(6/25-29)

facture, design, and distribution of plastic toys. Proceeds
—For general corporate purposes. Office—912 Sycamore
St., Cincinnati, Ohio. Underwriter—Kuhn, Loeb & Co.,

Inc., 26 Broadway, N. Y.

Price
stockholders, $2.50; to the public, $3.50. Business
<—Manager and distributor for Western Industrial Shares,
Inc., a mutual fund. Proceeds—For debt repayment and

capital and
Washington Ave., St.

Kenner

are

window coverings, room dividers, folding doors,
Proceeds—For debt repayment and general corpo¬

Unsubscribed shares will be offered to the public.

—To

working

repayment, working capital and
Office — 947 Newark Ave.,

J
Kine Camera Co., Inc.'
■.-.>■•y.*/: ' Nov. 21, 1961 filed .75,000 common;; Price—$5. Business
—Importing and distribution of cameras/binoculars and
photographic equipment. ProceedsAFor debt repayment
and working capital. Office—889 Broadway, N. Y. Un¬

Investment Management Corp.
May 10, 1962 filed 100,000 common to be offered for sub¬
scription by stockholders on a 2-for-l share basis.

the insurance field.

debt

For

amendment

ers.

as

Jerlee

Co., Inc., N. Y. Offering—Indefinitely postponed.

stockholder. Price—By amendment
(max. $20),. Business
management investment.company specializing, in

—

corporate purposes.

'■{
March 30, 1962 filed 542,000 common/ of which 205,000

May 1, 1962 filed 75,000 common. Price—$4.25. Business"
'—Processing and distribution of vinyl roll plastic fabric
and vinyl tablecloths, and various foam rubber items.
Proceeds—For equipment, raw materials, debt repay¬
ment and working capital. Office—596-612 Berriman St.,
Brooklyn, N. Y. Underwriter—R, P. Raymond & Co*

by

of

-

•

Inc.
filed 80,000 common. Price—$4. Business
—Design, manufacture and sale of young women's wear.
Proceeds—For working capital and possible acquisitions.
Office—254 W. 35th St., N. Y. Underwriters—Seymour
Blauner^Co., and Wm. Stix Wasserman &, Co., N. Y.
Offering—Expected in mid-July.

Distributors, Inc.

general corporate purposes.
Underwriter—None.

shares,

common*

16, 1962 filed 250,000 class A common. Price —
(max. $10). Business—Company owns ;
and operates apartment and office buildings. Proceeds— v/
For debt repayment. Office—1620 S. Elwood St., Tulsa,
Okla. Underwriters—Fulton, Reid & Co., Inc., Cleveland
and Walston & Co., Inc., N. Y.
;'v By

Jays Creations,

and

.

class A

March

(6/25-29)

March 30, 1962

Ave., N. Y. Underwriter—Van Alstyne, Noel & Co., N. Y.

dan &

88,000

Kelley Realty Corp.

Offering—Temporarily postponed.

Proceeds—For investment. Office—450 Seventh

and

filed

1961

Elizabeth, N. J. Underwriter—Hardy & Co., N. Y. Offer¬
ing—Expected in late July.
;

Olympic Blvd., Los An¬
geles. Underwriter—D. E, Liederman & Co., Inc., N. Y,

rate

distribution

29,

Jaylis Industries, Inc.
Oct. 18, 1961 filed 150,000 class A common. Price—$8.
Business—Manufactures patented traversing screens for,

Mai eh

Theatrical

Air

Jamoco

•

repayment, working capital and
Office—826 62nd St., Brook¬
Underwriter—Drourr, Lampert & Co., Inc.,

Ifiterworld Film

debt

Underwriter—Hayden, Stone & Co., N. Y.

other

Y.

San Francisco.

Price—$2.

debt

Sept. 29, 1961 filed 106,250

Proceeds—For

Office—30 E. 42nd St.,

Kay Foods Corp.

Proceeds

Jayark Films Corp. (6/25-29)
Aug.'24, 1961 filed 72,000 common, of which 50,000 are
to be offered by the company and 22,000 by stoekholdera. Jfrice—-By
amendment. Business—The distribution^
of motion picture and television films. Proceeds—For
production of films and working capital. Office—15 E.
48th St., N. Y. Underwriter—Pacific Coast Securities Co.,

York.

company.

(max. $25).

•

corporate purposes.

lyn, N. Y.

By amendment

air-conditioning systems. Pro¬
stockholders. Office—38-18 33rd St.,
Long Island City, N. Y. Underwriter—Shearson, Hammill & Co., N. Y. Note—This offering was temporarily
postponed.
' •

Business—Manufacture and installation of terrazzo floor¬

ing, and the installation of marble and tile.

,

unit).

per

which 44,000 are to be offered by the company and 44,000

ceeds—For selling

common

Corp., Clifton, N. J.

International

May

•

Dec.

heating, ventilation and

and 9-month
war-ants to purchase 110,000 class A shares at $4 per
shai i, to be offered in units, each consisting of one share
and one warrant. Price—$4 per unit. Business—Design,
development and manufacture of mechanical, electro¬
mechanical and electronic equipment for government
agencies and the military. Proceeds—For equipment,
debi. repayment and working capital. Office—Engineer's
Hill. Plainview. L. I., N. Y. Underwriter-^International
Services

class A

N. Y.

Jarcho Bros., Inc.
;
•
March 23, 1962 filed 240,000 common. Price—By amend¬
ment (max. $12).
Business—Installation of plumbing,

Office—919 N. Michigan Ave., Chicago. Under¬
writer—Kidder, Peabody & Co., N. Y. Offering—July.'
Systems

investment.

estate

$101

—

poses.

International

(max.

repayment and working capital.

Feb. 28, 1962 ("Reg. A") 40,000 common. Price — $3.
Business—Design, installation and maintenance of heat¬
ing, plumbing and air conditioning systems. Proceeds—
For inventory, equipment and other corporate purposes.
Office
954 Jamaica Ave., Brooklyn, N. Y.
Under¬
writer—Martin-Warren Co., Ltd., N. Y.

unit). Business—Real estate investment. Proceeds—For
debt repayment, construction, and other corporate pur¬

Maich 30,1962 filed 110,000

—

Greenshields & Co., Inc., N.

Realty Corp.

Price—By

Price—By amendment

Business—Real

holding company for a Jamaican Electric
utility. Proceeds—For acquisition of additional stock in
subsidiary. Office—507 Place D'Armes, Montreal, Canada.
Underwriters — Stone & Webster Securities Corp. and

April 27, 1962 filed $18,000,000 of s. f. debentures due
1977, 360,000 common shares and five year warrants to
purchase 540,000 common shares to be offered in 180,000
units, each unit consisting of $100 of debentures, two
common
shares and warrants to purchase three addi¬
tional

warrant.

1962 filed $750,000 convertible subordinated
due 1977; also 120,000 class A common, of

stockholders. Price

by

named Marine & Animal By-Products

,.

(7/2-6)

Corp.

29, 1962 filed 50,000 shares 6% cum. preferred
four-year common stock purchase warrants to be
offered in units consisting of pne preferred and one,

•f

Inc.

Kavanau

and

Business—A

expansion, machinery, and working cap¬
Office—233 Broadway, N. Y. Underwriter—Arnold

Proceeds—For

International

•

March

f

1962 filed 90,000 common. Price—$5. Business
fishmeal and animal by-product proteins.

Malkan & Co., Inc.,

Bronx, N. Y. Underwriter—Michael G. Kletz & Co.,

—

—Distributes

ital.

Rd.,
N. Y.

payment and working capital. Office—1800 Boston

be offered by the company* by stockholders. Price—$7; Business—Packing and sale
Price—By amendment (max, ■ of fruit juice products. Proceeds—For general corporate
purposes. Office—241 N. Franklintown Rd., Baltimore.
$12.50 for common). Business—Operation of a chain, of
Underwriter
retail department stores; Proceeds—For debt repayment
Auchincloss, Parker & Redpath, Wash¬
and working capital. Office—29 NV W, 10th St., Miami,
ington, D. C. Offering—Indefinitely postponed. y
Fla. Underwriter—Clayton Securities Corp., Boston. Of- ;
Keene Packaging Associates
':\'i
fering—Indefinitely postponed.
April 2, 1962 filed 165,000 common, of which 100,000
Jamaica Public Service Ltd.
are to be offered by company and 65,000 by stockholders.
March 30, 1962 filed 215,000 common, of which 100,000
Price—$4. Business—Design and manufacture of semi¬
shares are to be offered by company and 115,000 shares
rigid vinyl plastic cases and containers for packaging.

Business—Manufacture of
extrusion

•

which 66,666 shares are to
and 53,334 by stockholders.

Corp.

ment, rent, salaries and working capital.
17th St., Denver. Underwriter—Amos C.
Denver. Offering—Expected in August.

13,

debentures

Kaufman

Carpet Co., Inc.
1962 filed 250,000 common. Price—$5. Business^-Operatian o£ a chain of retail stores selling carpets —«
'
and rugs. Proceeds—For expansion, inventory, debt re¬

Inc., N. Y.

Jackson's/Byrons Enterprises

•

filed

1962

26,

Container

•

(7/9-13)
Jan. 30, 1962 filed 100,000 common. Price—$3. Business
■^Industrial designing,,the design of. teaching machines,v
and the, production of teaching programs. Proceeds—
For expansion, new facilities and working capital. Office
—315 Central Park W., N. Y. Underwriter—R. F. Dowd

Underwriter—None.

Jan. 26,

Thursday, June 14, 1962

.

March 29,

Jaap Penraat Associates/ Inc.

•

equipment for use
acteristics of various materials.
Proceeds—For selling
stockholders. Office—2500 Washington St., Canton, Mass.
International

$2,760,000 of 6^2 % dollar debentures
each; for debentures,

Price—For units, $1,050

due 1980.

March

*

(2804)

Continued from page
4

Financial Chronicle

The Commercial and

52

share.

Price—By

Construction and
—For

debt

Beverly Hills, Calif.
N. Y.

Underwriter—Lee Higginson Corp.,

Offering—Indefinitely postponed.

.

.

I

Volume 195^

Number 6168

J ♦. The Commercial and Financial Chronicle

Inc.
("Keg. A") 100,000 common of which
65,000 will be sold for. company and 35,000 for stock¬
holders. Price — $3. Business — Manufacture of certain
patented cooling packages. Proceeds—For debt repay¬
ment and working capital. Office—Jennings Bldg., P. O.
Box 638, Moberly, Mo. Underwriter—John W. Flynn
& Co.rSanta Barbara, Calif.
.

Kwik4fold,

March .29,, 1962

Lab-Line Instruments.

Inc.

Feb. 23, 1962 filed 142,860 common, of which
to be offered' by the company and 20,692 by

122,168 are
stockhold¬
ers, Price—By amendment (max. $9). Business—Manu¬
facture of an extensive line of industrial, hospital and.
clinical laboratory instruments. Proceeds—For debt re¬
payment, construction, and working capital. Office—
3070-82 W. Grand Ave., Chicago. Underwriter—R. W.
Pressprich & Co., N. Y. Note—This offering was tem¬
porarily postponed.
inc.

Laminetics

March 22, 1962 tiled 80,000 common. Price—$3.50. Busi¬
ness—Production and sale of gift sets, linens, place mats,
etc.
Proceeds—For equipment, moving expenses, sales

and other corporate purposes. Office —20
St., N. Y. Underwriter—Fabrikant Securities
Corp., N. Y. Offering:—Expected in late July.

promotion
W.

•

27th

Lee

Fashions, Inc.
Dec. 27, 1961 filed 166,667 common. Price—By amend-;
ment. Business—Importing of low priced ladies' scarfs
and blouses.

Proceeds—For debt repayment and work¬

ing capital. Office—2529 "Washington Blvd., Baltimore.
Underwriters—Godfrey, Hamilton, Taylor & Co., N. Y.

Co., Miami Beach. Offering—Temporarily
..:
■

and Penzell &

postponed.

-v

Co.

Lee-Norse

May 25, 1962 filed 272,000 common. Price—By amend¬
ment (max. $20). Business—Production of a coal min¬
ing machine. Proceeds—For selling stockholders. Office
—751 Lincoln Ave., Charleroi, Pa. Underwriter—Moore,
Leonard & Lynch, Pittsburgh.

Lehigh Industries & Investment Corp.
filed 2,000,000 class A common. Price—By
amendment.. Business—A holding company for three
Dec. 29, 1961

subsidiaries which operate

utilities, engage in construc¬

tion, and distribute electronic parts. Proceeds—For debt
repayment, construction and working capital. Office—
800 71st St., Miami Beach, Fla. Underwriter—Leeco Invesors
Corp. (a newly-formed subsidiary). Offering—
Imminent.

working capital. Office—145 W. 11th St., Huntington
Station, L. I.. N. Y. Underwriter—Blank, Lieberman &
Co., Inc., N. Y. Offering—Expected sometime in

July.

■

Lenox, Inc..'"'
'
March 30, 1962 filed 172,500 common, of which 25,700
are to be offered by
company and 146,800 by stock¬
holders. Price—By amendment (max. $18). Business—
Manufacture and marketing of dinnerware and giftware.
Proceeds—For purchase of leased plant. Office—Prince
& Meade Sts., Trenton, N., J. Underwriter—Hemphill,
Noyes & Co., N. Y. Offering—Temporarily postponed.
#

(Louis)

(7/16-20)

Enterprises, Inc.

March 30, 1962 filed 1,000,000 class A common. Price—
$10. Business—Heal estate management and construction.
Proceeds—For debt repayment and general corporate

Office—8737

Wilshire

Blvd.,

Underwriters—Morris Cohon &

baum &

Beverly

Hills,

Co. and Leiber-

Co., N. Y.

Levine's

Inc.

clothing and dry goods stores. Proceeds
stockholders.

Office

—

8908

—

amend¬
chain of
For selling

Ambassador Row,

Dallas.

Underwriter—Kidder, Peabody & Co., N. Y. Offering—
Indefinitely postponed.
(Tillie)

Foods, Inc.

April 9, 1962 filed $4,000,000 of 5^s% convertible sub¬
ordinated debentures due 1977. Price—At par. Business

—Processing, canning, bottling and selling of fruits and
vegetables. Proceeds—For debt repayment and working
capital. Office—Fresno Ave. & Charter Way, Stockton,
Calif. Underwriter—Van Alstyne, Noel & Co., N. Y. Of¬
fering—Expected sometime in July.

(7/2-6)
March 14, 1962 filed $1,000,000 of 6%% first mortgage
bonds due 1977 and 200,000 common to be offered in
units consisting of a $500 bond and 100 shares. Price—
•

Lewiston-Gorham Raceways,

$500 per unit.
mutuel harness

Inc.

Business—Conducting^ commercial pari-

racing meets in Lewiston and Gorham,
Maine. Proceeds — For debt repayment, property im¬

provements and working capital. Office—33 Court St.,
Auburn, Maine. Underwriter—P. W. Brooks & Co., N. Y.
Lllli Ann Corp.
March 29, 1962 filed $750,000 of conv. subord. debentures
due 1977, also 100,000 common shares to be offered by
stockholders. Price—By amendment. Business—Design,

manufacture and

distribution of women's high fashion

suits and coats. Proceeds—Net proceeds from the deben¬
ture

sale

Lincoln

March

will

be

30,

Price—Net

Fund, Inc.
1961 filed

951,799 shares of common stock.
plus a 7% selling commission.

asset value

Business—A

non-diversified,

open-end,

management-

type investment company whose primary investment ob¬
jective is capital appreciation and, secondary, income
derived from the sale of put and call options. Proceeds—
For investment. Office—300 Main St., New Britain, Conn,
Distributor—Horizon Management Corp., N. Y.
•

Livestock

(6/25-29)
Feb 23, 1962 filed 245,000 common. Price—$10. Business
—An insurance holding company whose subsidiaries in¬
sure the lives of all types of animals. Proceeds—To form
new subsidiaries. Office—26 Piatt
St., N. Y. Underwriter
—Shearson, Hammill & Co., N .Y.
(6/26)

*

April 27, 1962 filed 100,000

added

to

the

general funds

of the

portion of which may be used to retire shortterm loans. Office—2701 16th St., San Francisco. Under¬
writers—Sutro & Co., San Francisco and F. S. Smithers
& Co., New York.
company, a

Lily Lynn, Inc.
Feb. 23,1962 filed 150,000 common, of which 86,000 are to
be offered by the company and 64,000 by the stockhold¬
ers. Price—By amendment (max. $12). Business—Design,
manufacture and sale of women's casual dresses. Pro¬




53

<

.

common.

Price—$2.25. Busi-

ness—Assembling of packages for shipment to post of¬
fices. Proceeds—For general corporate purposes. Office
145 Ave. of the Americas, N. Y,
Underwriter—Globus,
Inc., N. Y, Offering—Expected in August.
/
Mammoth Mart Inc. (7/2-6)April 5, 1962 filed 200,000 common, of which 100,000 are
to be sold by company and. 100,000 by stockholders. Price
—By amendment (max. $15). Business—Operation of
self-service discount department stores. Proceeds — For
debt repayment and working capital. Office—106 Main

St.,

Financial Corp.

Lockfast Mfg. Co.

Mail Assembly Service, Inc.

,,

Brockton,

Mass.

Underwriter—McDonnell

&

Co.,

New York

Manhattan Drug Co., Inc.
March 29, 1962 filed 72,000 common, of which 58,000 are
to be offered by company and 14,000 by stockholders.

Price—$3.50.
Business—Manufacture,
packaging
and
sale of various proprietary drug products. Proceeds—
For

,

Jan. 11, 1962 ("Reg. A") 85,000 common. Price — $3.50
Business—Manufacture of furniture hardware for sale
to furniture manufacturers. Proceeds—For debt repay¬

ment, steel inventories nad plant expansion. Office—
Boarman Ave., Baltimore. Underwriter—R & D
Investors Corp., Port Washington, N. Y.
3006

equipment, new products, debt repayment and work¬
capital. Office—156 Tillary St., Brooklyn, N. Y.
Underwriter—Dana Securities Co., Inc., N. Y. Offering
—Expected sometime in July,

ing

•

Maradel

Products, Inc.

March 12, 1962 filed 335,000 common. Price—By amend¬
ment (max. $20).
Business—Manufacture of toiletries
and cosmetics.

Lockwood Grader Corp.
Feb. 20, 1962 filed $900,000 of 6% sinking fund deben¬
tures series B, (with warrants). Price—$1,000 per deben¬
ture.

Business—Design, manufacture, sale and repair of
machinery and equipment used in agriculture. Proceeds
—For debt repayment, equipment and general corporate
purposes. Office—7th & S Sts., Gering, Neb. Underwriter
—First Nebraska Securities Corp., Lincoln, Neb. Offer¬
ing—Temporarily postponed.

Proceeds—For acquisitions, debt repay¬
working capital. Office—510 Ave. of the Amer¬
icas, N. Y. Underwriter — Hornblower & Weeks, N. Y.
Note—This registration was withdrawn.

ment and

Marin County Financial Corp. (6/18-22)
May 2, 1962 filed 102,050 capital shares, of which 27,790
are to be offered by company and 74,260 by stockhold¬
ers.
Price1—By amendment (max. $18).
Business—A
holding company for a savings and loan association.

Logos Financial, Ltd.
April 11, 1962 filed 250,000 capital shares. Price — By
amendment (max. $10). Business—A diversified closedend investment company. Proceeds—For investment. Of¬
fice—26 Broadway, N. Y. Underwriter—Filor, Bullard &
Smyth, N. Y.

Proceeds—For

•

Corp.
30, 1962 filed 63,000 common. Price—$5. Business
—Company provides optometric services and dispenses
optical items. Proceeds—For expansion, a laboratory and
working capital. Office—130 W. 57th St., N. Y. Under¬

Price—$20 per unit. Business—Operation of a
—
For construction, equipment and
working capital. —Address—Cummings, Ga. Underwriter
—First Fidelity Securities Corp., Atlanta. Offering—
July.
:
i....

writers—J. R. Williston & Beane and Doft &

Marks Polarized Corp.
June 27, 1961 filed 95,000

Lordhill

March

Con Inc.,

Offering—Temporarily postponed.

Lucks, Inc.
*
28, 1962 filed 282,496 common, of which 142,500
to be offered by the company and 139,996 by stock¬
holders. Price—By amendment (max. $5). Business—
Canning and marketing of vegetables and meats. Pro¬
ceeds—For expansion and debt repayment. Address—
Seagroye, N. C. Underwriter—J. C. Wheat & Co., Rich¬
mond, Va. Offering—Indefinitely postponed.
Feb.

are

•

Lustig Food Industries, Inc.
29, 1961 filed 100,000 common. Price—$6. Business
—Processing and packaging of frozen foods and the can¬
ning and bottling of fruits and vegetables. Proceeds—
For debt repayment and working capital. Office—48
High St., Brockport, N. Y. Underwriter—None.
Dec.

marina.

Proceeds

-

amendment.

games. Proceeds—For general corporate purposes.

Office

St., N. Y. Underwriter—Darius Inc., N. Y.
Offering—Temporarily postponed.
Magic Fingers, Inc.

Dec. 29, 1961 filed 75,000 common. Price—$4. Business
—Production of a new electrically powered device for
massaging a person in bed. Proceeds — For general cor¬
porate purposes. Office—Route 17, Rochelle Park, N. J.

Underwriter—Stanley R. Ketcham & Co., Inc., N. Y.
Magnetics Research Co. Inc.
April 30, 1962 filed 100,000 common. Price—$3. Business
—Design and marketing of magnetic memory units.

Company also plans to market transistor logic units and
subsystems for use in computers, business machines and
data handling systems. Proceeds—Expansion of sales and
engineering, new product development and equipment.
Office—179 Westmoreland Ave., White Plains, N. Y. Un¬
derwriter—T. W. Lewis & Co., Inc., N. Y.

.

/
common

shares.

Price—By

Business—Conducts research and

develops

electronics, optics, electro-optics, quantum elec¬
tronics, etc. Proceeds — For expansion, acquisition of
new facilities and other corporate
purposes.
Office—
153-16 Tenth Ave., Whitestone, N. Y.
UnderwritersRoss, Lyon & Co.. Inc. (mgr.), Glass & Ross, Inc., and
Globus, Inc., N. Y. C. Offering—Postponed.
Marshall Press, Inc.
May 29, 1962 filed 60,000 common. Price—$3.75. Busi¬
ness—Graphic design and printing.. Proceeds—For pub¬
lishing a sales catalogue, developing a national sales
staff and working capital.
Office—812 Greenwich St.,
N. Y.
Underwriter—R. P. Raymond & Co., Inc.^ 26
Broadway, N. Y.
Martin

(L. P.) Maintenance Corp. (6/19)
23, 1962 filed 100,000 common, of which 20,000
offered by company and 80,000 by a stock¬
holder. Price—$5. Business—Cleaning and maintenance
of buildings and the sale of janitorial supplies and
equipment. Proceeds—For debt repayment and work¬
ing capital. Office—840 DeKalb Ave., N. E., Atlanta.
March

to

are

be

Underwriter—Johnson, Lane, Space Corp., Atlanta,
Masters, Inc. (6/25-29)
v
March 22, 1962 filed $1,500,000 of 6% conv. subord. de¬
bentures due 1972;
also 150,000 common shares, of
which 80,000 will be offered by the company and 70,000
stockholder. The securities will be offered in units

by

a

of

one

$100 debenture and

10 common shares,

except

that up to $700,000 of debentures and 70,000 shares may
be offered separately.
Price—For debentures, at par;
for common, $10. Business—Operation of discount de¬

partment stores selling a wide variety of merchandise.
expansion.
Office—135-21 38th Ave.,
Flushing, N. Y. Underwriters—Sterling, Grace & Co.,
Proceeds—For
and

Norton, Fox & Co., Inc., N. Y.

'

Masury-Young Co. 1 "
Dec. 4, 1961 filed 100,000 common. Price—$6. Business—
Manufactures

—130 E. 40th

>

ment in;

.

—Production of educational and recreational devices and

at

H

.

—

Magellan Sounds Corp.
1962 filed 60,000 common (with attached oneyear class A warrants to purchase 60,000 common shares
at $4 per share and two-year class B warrants to pur¬
chase 60,000 shares at $4,50 per share) to be offered in
units (each consisting of one share, one class A warrant
and one class B warrant). Price—$4 per unit. Business

Ave.

common.

Co., Inc. (6/25-29)
1962 filed 130,260 of class A common, of which
65,130 are to be offered by the company and 65,130
by stockholders. Price—$5. Business—Sale and distribu¬
tion of costume jewelry, ladies' handbags, and accesso¬
ries. Proceeds
For working capital. Office — 1650
Broadway, Kansas City, Mo. Underwriter—George K.
Baum & Co., Kansas City

Feb. 28,

Fifth

March 30, 1962 ("Reg. A") 15,000 units consisting of one
share of 8% cumulative preferred and two shares of

Mac-Allan

Magazines For Industry, Inc.
Aug. 2, 1961 filed 100,000 common, of which 80,000 will
be offered by the company and 20,000 by stockholders.
Price—$5. Business—The publishing of business period¬
icals. Proceeds—For promotion, a new publication and
working capital. Office—660 Madison Ave., .New York.
Underwriter—Arnold, Wilkens & Co., Inc., N. Y. Offer¬
ing—Temporarily postponed.
!
* /

Office—990

Underwriter—Dean Witter &

Marine Development Corp.

Lunar

Films, Inc.
Aug, 31, 1961 filed 125,000 common. Price—$5.75. Busi¬
ness—The production of television films. Proceeds—For
filming and production and working capital. Office—
543 Madison Ave., N. Y. Underwriter—Fred F. Sessler
& Co., Inc., N. Y. Note—This firm formerly was named
Lunar Enterprises, Inc. Offering—Postponed.

investment.

Court, San Rafael, Calif.
Co., San Francisco.
•

Feb. 23,

March 19, 1962 filed 80,000 common. Price—By
ment (max. $17.50). Business — Operation of a

Lewis

Beane, N; Y. Offering—Temporarily postponed.

-

sanitary structures, fallout shelters and play sculptures.
Proceeds—For debt repayment, sales promotion and

Calif.

R. Williston &

•

Dec. 21* 1961 filed 100,000 common. Price—$3.50. Bustnesi^MaiiUfactures steel re-inforced concrete utilities,

Lesser

repayment, worldng capital and expan¬
Riverside Ave.,

sion: Office—Herman L. Bishins Bldg.,
New Bedford, Mass. Underwriter — J:

N. Y.

Lembo Corp.

purposes.

ceeds—For debt

(2805)

v' •". t

commercial

products.
equipment, and

nance

and

mainte¬

industrial floor

Proceeds — For repayment of debt,
other corporate purposes. Office—76

Roland St., Boston. Underwriter—Chace, Whiteside &
Winslow, Inc., Boston. Offering—Indefinitely postponed.

i( Maxwell Industries, Inc.
7, 1962 filed $750,000 of 6V2% subord. sinking fund
debentures due 1972, 75,000 common and 10-year war¬
rants to be offered in units consisting of a $10 debenture,
one common share and one warrant.
Price—By amend¬
ment (max. $21.50 per unit).
Business—Contract fin¬
isher of fabrics used in the manufacture of Wearing ap¬

June

Proceeds—For debt repayment. Office—70 Wall
St., N. Y. Underwriter—H. M. Frumkes & Co., N. Y.

parel.

Mechmetal-Tronics Inc.

May 28, 1962 filed 150,000 shares of 8% convertible cu¬
mulative preferred stock. Price—$3. Business—Design
and manufacture of miniature metal bellows and other
miniature products. Proceeds—For debt repayment, re¬
search and development and working capital. Office—
12 Rochelle Ave., Rochelle Park, N. J. Underwriter—
Charels Plohn & Co., New York.
Medical

Industries

Fund, fine.

Oct, 23, 1961 filed 25,000 common. Price—$10.
—A closed-end investment company which
Continued

Business
plans to

on

page

54

54

Continued

The Commercial and Financial Chronicle

(2806)

from

Milmanco

53

page

open-end.
Proceeds—For investment in the
medical industry and capital growth situations.
Office
—677 Lafayette St., Denver. Underwriter—Medical As¬
become

sociates, Inc., Denver.
Medical

Nov.

1961 filed 250,000 common. Price—$10. Busi¬
of
medical electronic
equipment.

13,

ness—Manufacture

Office—City, Calif. Underwriter—Financial Equity Corp.,

Proceeds—For

Studio

general

corporate

purposes.

Los Angeles.

Memorial

Services, Inc.

April 30, 1962 filed 1,200,000 common. Price—$1. Busi¬
ness—Company plans to acquire and operate funeral
homes. Proceeds—For acquisitions, debt repayment and
working capital.
Office—315 E. Sixth Ave., Helena,
Mont. Underwriter—Memorial ^Securities, Inc., Helena.

Price—By amend¬
Business—Operation of a chain of
Proceeds—For selling stockholders.
10th St,, Wilmington, Del. Underwriter

May 24, 1962 filed 169,302 common.
ment

department

$26).
stores.

Office—100

W.

(max.

—Clark, Dodge & Co., Inc., N. Y.

April 20, 1962 filed 104,000 common, of which 33,000 are
to be offered by company and 71,000 by stockholders.
Price—By amendment (max. $7.50). Business—Sale of
phonograph records through leased record departments.
Proceeds—For moving expenses, working capital and
general corporate purposes. Office—1692 Utica Ave.,
Brooklyn, N. Y. Underwriter—D. J. Singer & Co., N. Y.
•

Mercury Books, Inc.

St., Philadelphia. Underwriter — Meade
Offering—Temporarily postponed.

& Co., N. Y.

34,200 common by stockholders. Price—By amend¬
(max. $10). Business—Distribution of food and re¬
lated products to supermarkets and other retail stores in
the New York Metropolitan area. Proceeds—For general
and

ment

corporate purposes. Office—345 Underhill Blvd., Syosset,
N. Y.

Underwriter—Brand, Grumet & Siegel, Inc., N. Y.

Metropolitan Acceptance Corp.
filed $300,000 of 6% subordinated convert¬
common shares to be offered

Oct. 2, 1961

ibles due 1967 and 60,000
In

upits consisting of $100 of debentures and 20

shares. Price—$150
tail

sales.

Western

common

unit. Business—Financing of

per

re¬

Proceeds—For

working capital. Office—5422
Chase, Md. Underwriter—To be

Ave., Chevy

,,

St., N. Y. Underwriters — H. Hentz & Co. and Herzfeld
& Stern,, N. Y. Offering—Expected in July.
,

ventories. Office—224-09 Linden Blvd., Cambria

Underwriter—Harrison Securities, Inc.,
New York.-' •/■ ,"i - •
/. "<
K '//
4""// ~ -

Miracle

Mart, Inc.
1962 filed 295,000 common, of which 140,000
to be offered by company and 155,000 by stockhold¬

Car Rental System Inc.
1
19, 1962 filed 2,000,000 common to be offered-for
subscription by stockholders; unsubscribed shares Will
be offered to the public. Price—$1. Business—Rental of
•

.

Price—By amendment (max. $14). Business—Opera¬
tion of self-service discount department stores. Proceeds
debt

repayment, expansion and working capital.

Office—370

W.

35th St.,

vehicles

N. Y. Underwriter—McDonnell

sion.

Corp.

—

Nov. 24, 1961 ("Reg. A") 300,000 common; Price ~ $1.
Business — Production and sale of new type butterfly
valve.

Proceeds—For

of the patent and

purchase

pro¬

development of the valve.- Office — 5909 r fied telephone directories. Proceeds—For general £pj?r
Hollywood Blvd., Hollywood, Calif. Underwriter—Brown
porate purposed. Office—3306 Lancaster Ave., Philadel¬
& Co., Phoenix, Ariz.
,
"
<
phia. Underwriters—William, David & Motti, Inc. and
Molecular Dielectrics, Inc.
Crichton, Cherashore & Co., Inc., N. Y.
• National
Sept. I, 1961 filed 150,000 common, of which 135,000
Equipment 3t Plastics .Corp. (7/23-27)
„

_

to be offered

by the company and 15,000 by Cardia
Price—$5. Business—The manufacture of high-tem¬
perature electronic and electrical insulation materials.

Sept. 28, 1961 tiled 105,000 common*. Price—$5. Business
—Operation of a cleaning and pressing plant and affili¬

,

Co.

Proceeds—For

equipment,

ated

estate

investment

trust.

Office—1700
Underwriter—Eisele &

St., N. W., Washington, D. C.
King, Libaire, Stout & Co., N. Y. Offering—Indefinitely
postponed.

new

Corp. (6/25-29)
13, 1962 filed 200,000 common. Price—$3.50. Busi¬
ness—Manufacture, sale and operation of vending ma¬
chines. Proceeds—For debt repayment, inventories and
general corporate purposes. Office—6425 Oxford St., St.

Louis

Park, Minn. Underwriter—Irving J. Rice & Co.,

Inc., St. Paul.

nents, instruments and systems used in missiles and
satellites, radar and communications systems. Proceeds
—For

debt

repayment

and

working

capital.

220 Pasadena

Ave., South Pasadena, Calif.
—White, Weld & Co., N. Y.
Mid-America

Office—

Underwriter

Security Life Insurance Co. (6/18-22)
100,000 common, of which 80,000
by company and 20,000 > by ?stockholders. Price—$17.50.. Business—A life, accident and
health insurance * company. Proceeds—For ,investment*
Office
130
Alvarado,:, N. E. Albuquerque, N,■ M.

Systems Corp.
12, 1961 filed 140,000 common. Price—$3. Business
—Production
of
polyethylene
materials
of; varying
grades. Proceeds — For equipment, research and .de¬
velopment and working capital. Office — 420 Bergen
.

,

March

.

share for each four held of record June

1, 1962. Price—
$6. Business—Oil and gas production and development.
Proceeds—For expansion, preferred stock redemption
and working capital. Office—14 North
Robinson, Okla¬
homa City. Underwriter—None.
Midwest Planned

Investments, Inc.

May 28, 1962 filed 250,000
ment

common.

Price—By amend¬

(max.

$7). Business—Company is engaged
on contractual
plan of other
funds, in trading in over-the-counter market,
underwriting. Proceeds—For hiring and training

distribution of shares

sonnel. Office—1300

First National Bank

in 1he
mutual

and

in

of per¬

Bldg., Minne¬

apolis. Underwriter—None.

Monarch

Midwest Technical Development
Corp.
26, 1962 filed 561.500 common to be offered for
subscription by stockholders on the basis of one share
for each two shares held.
Price—By amendment

(max.
$7). Business — A closed-end management investment
company. Proceeds — For general corporate purposes.
Office

—

2615

First National

Bank

Bldg., Minneapolis.

Underwriter—None.
Midwestern Mortgage Investors (6/25-29)
1962 filed 500,000 shares of beneficial interests.

Price—$10.

Business

—

A

real

estate

investment

com¬

Proceeds—For investment and operating expenses.
Office—1630 Welton St., Denver. Underwriter—Boettcher & Co., Denver.
pany.




offered

—

National

Corp.
May 28, 1962 ("Reg. A") 140,000 common. Price—$2.
Business—Manufacture and sale of plastic letters, em¬
bossed sign faces, quantity signs and boat windshields.
Proceeds—For purchase of land and building, moving
expenses, equipment and working capital.
Office'—5606
Stuebner Airline Rd.,
Houston.
Underwriter—W. R.
Sauve Co., N.'Y.

St.

&

•

Central

Electro Products Corp.
29, 1961 filed $1,250,000 of 6%% convertible sub¬
ordinated debentures due March, 1977. Price — At-par.Business—Operates retail stores selling sewing machines
and vacuum cleaners. Proceeds
For expansion and
working capital. Office—122 W. 26th St., N. Y. Under-

writer—Standard Securities Corp., N. Y.

of which 175,000
by company and 342,122 by stock¬
holders. Price—By amendment (max. $18). Business—
Retail sale of popular priced shoes. Proceeds—For debt
repayment and working capital. Office—558 Pleasant St.,
offered

Bedford.

Mass.

Underwriter—Dean

Witter

&

Co*

N. Y. Note—This registration was withdrawn.

Moskatel's, Inc.
May 28, 1962 filed 104,000 capital shares, of which 20,000
to be offered by the

company

and 84,000 by stock¬

(max. $8.50). BusinessSale of artificial flowers and florists' supplies. Proceeds
—For payment of income taxes. Office—738 S.- Wall St.,
Los Angeles, Calif. Underwriter—Thomas Jay, Winston
&

Co., Inc., Beverly Hills, Calif.
Mosler Safe Co.

i

(6/25-29)

vaults, security systems and office equipment. Proceeds
—For selling stockholders. Office—320 Park Ave., N. Y.
Underwriter—Blyth & Co., Inc., N. Y.
Mott's

Super Markets, Inc.
March 29, 1962 filed 75,000 common. Price—By amend¬
ment (max. $8). Business—Operation of a chain of su¬
permarkets. Proceeds—For debt repayment, equipment,

working capital. Office—59 Leggett St., East Hart¬
ford, Conn. Underwriter—D. H. Blair & Co., Inc., N. Y.
Offering—Indefinitely postponed.
State

Industries, Inc.

(6/25-29)

April

6, 1962 ("Reg. A") 80,000 common.
Price—$3.
Business—Design, fabrication and marketing of plastic
toys, games and novelties.
Proceeds—For equipment,

working capital and other corporate
New

purposes.

Jersey Railroad Ave., Newark, N. J.
writer—G. K. Scott & Co., Inc., N. Y.
•

systems. Proceeds—For inventory, debt repayment hnd
working capital. Office—718 Atlantic Ave.,-Brooklyn,
Underwriter—Ezra Kureen &

Office—

Under¬

Multronics, Inc.
("Reg. A") 100,000 capital shares. Price—$3.

Co., N. Y.

>

Nationwide

Bowling Corp. (6/25-29)
Oct. 19, 1961 filed 100,000 capital shares (with attached
warrants). Price—By amendment. Business—The oper¬
ation of bowling centers. Proceeds—For a realty acqui¬
sition and working capital. v Off ice — 11 Commerce St.,
Newark, N. J. Underwriter—Jennings, Mandel & Longstreth, Philadelphia.
v . v
'
' ;
"
,

New Brunswick Scientific

Co., Inc. (6/28) *
i
("Reg. A") 50,000 common. Price—$6.
Business—Design, development and manufacture of pre¬
cision apparatus used in production of pharmaceuticals
and other chemicals. Proceeds
For expansion, equip¬
ment, research, and working capital. Office—1130 Som¬
erset
St., New Brunswick, N. J.
Underwriter—John
Schuss & Co., N. Y.
»
w
28,

1962

—

-

New

Campbell Island Mines Ltd.

Oct. 13, 1961 filed 475,000 common, of which 400,000 *are
to be offered by the company and 75;000 by a stock¬
,

holder.

Price—50c.

develop¬

Business—Exploration,

ment and

mining. Proceeds—General corporate purposes.
Office—90 Industry St., Toronto, Canada. Underwriter—
A. C. MacPherson & Co., Toronto.
•

New

•

•:/

/h'V;.;r

,

England Electric System

April 12, 1962 filed 872,786 common shares being offered
for subscription by common stockholders on the basis
of

March 23, 1962 filed 260,000 common. Price—By amend¬
ment (max. $20). Business—Manufacture of safes, bank

Multi

Tele-Systems, Inc.
27, 1962 filed 82,000 common, of which 65,000 are
to be offered by company and 17,000 by stockholders.
Price—$3. Business—Manufacture of closed circuit TV

March

Morton's Shoe Stores, Inc.
March 16, 1962 filed 517,122 common,

New

>

(6/18-22):

May 11, 1961 filed 75,000 shares of capital stock. Price
design,
development, manufacture and sale of quality transistors
for military and industrial use.. Proceeds
For. new
equipment, plant expansion, working capital, and other
corporate purposes. Office—Mallory Plaza Bldg., Danbury, Conn. Underwriters—Lee Higginson Corp., N. Y. C.
and Piper, Jaffray
& Hopwood, Minneapolis (mgr.).

N. Y.

—

be

//.-.*v

Semiconductor Corp.

Feb.

Morse

to

named/

National

Liquors, Inc.

Dec.

are

be

—To be supplied by amendment.. Business—The

Ave., Baltimore. Underwriters—
Street & Go., and Morris Cohon & Co., N. Y. OfferingExpected sometime in late July.

275

Feb. 26,

1962 filed

Underwriter—To

Plastics

and

Feb.

be

.

holders. Price—By amendment

April 2, 1962 filed 225,000 common to be offered for
subscription by stockholders on the basis of one new

23,

to

are

Blvd., Palisades Park, N. J. Underwriters—Stone, Ackerman & Co.. Inc.,
(mgr.) and Heritage Equity Corp., N. Y.
Offering—Temporarily postponed.
;
-

are

Minerals, Inc.

debt

National

Molecular

•

Microdot Inc. (6/28)
April 30, 1962 filed 170,000 capital shares, of which 156,000 will be offered by company and 14,000 by stock¬
holders. Price—By amendment (max. $20). Business—
Design, development, manufacture and sale of compo¬

Proceeds—For

pansion and working capital. Address

Dec.

•

Micro-Dine

Feb.

stores.

repayment, store ex¬
—
Portage, Pa.
Underwriter—Cortlandt Investing Corp.; N. Y.

product and working
capital. Office—101 Clifton Blvd., Cliftqn, N. J. Under*
a

Bank

real

expan¬

Directories, Inc. *
: k .;
/ ;
' "
°<
("Reg. A") 100,000 common. Price—$£.75.
Business—Compilation and publication of regional classi¬

K

Business—A

Proceeds—For

National

Proceeds—For general corporate purposes.

Price—$6.50.

activities.

duction and

Montebello

Metropolitan Realty Trust

related

March 29, 1962

April 5, 1962 filed 160,000 common. Price—By amend¬
ment (max. $5). Business—Blending, bottling and mar¬
keting of alcoholic beverages. Proceeds—For equipment;
inventories, advertising and working capital. Office—~

•,

and

Office—1000

Milner Bldg., Jackson, Miss. Under¬
writer—None. Note—This registration bas become effec¬
tive.
'/-//'/•-/
/ /■'■'/ •/■'*/ ■ 1

& CO., N. Y.
Valve

National

March

ers.

—For

Heights,

(Queens), N. Y.

April 20,

named.

Dec. 20, 1961 filed 1,000,000 shares of beneficial interest.

—

fund will invest in tax-exempt bonds of states,

-

•

March 30, 1962 filed $1,500,000 of convertible subordi¬
nated debentures due 1977 to be offered by company

To be supplied

by amendment. Business —The
counties,
municipalities and territories Of the U. S. Proceeds—For
investment. Sponsor—Ira Haupt & Co.j 111 Broadway,

Wash.

writers—To be named.

(6/18-22)

Corp.

Municipal Investment Trust Fund, Series B - *
April 28, 1961 filed $12,750,000 (12,500 units) of interests.
Price

Minkus Stamp & Publishing Co., Inc.
:
T
April 27, 1962 filed 150,000 common. Price—By amend- - N. Y. C.
ment (max. $6).
National Bag-O-Tunes, Inc. 5
Business—Operation of leased stamp-?
and coin departments in department stores, and the pub¬
May 11, 1962 ("Reg. A") 50,000 common. Price—$5.
lishing of stamp albums and catalogues. Proceeds—For
Business—Distribution of phonograph records. Proceeds
—For expansion of warehouse
expansion and working capital. Office—116 W. 32nd
space, equipment and in¬

are

14, 1962 filed 55,000 common. Price—$4.50. Busi¬
ness—Publishing of newly written popular biographies.
Proceeds—For working
capital.
Office—1512 Walnut
Feb.

Met Food

&

Renton,

Ave.,

Missile

Enterprises, Inc.

Merco

and

Underwriter—Cruttenden
Co., Inc., 618 S. Spring St., Los Angeles.
7th

Thursday, June 14, 1962

.

Silver

prints technical manuals for armed forces and industry..
Proceeds—For debt repayment and expansion. Office—

are

Mercantile Stores Co., Inc.

,

writes, / prepares

Business—Company

Price—$4.

.

ment, and working capital. Office—2000 P St., N. W,.
Washington, D, C. Underwriter — Switzer & Co,, Inc.,
Spring, Md. Offering—Imminent. I
V
>

May 2, 1962 ("Reg. A") 75,000 common, of which 64,200
will be sold by company and 10,800 by stockholders.

620

Video Corp.

Corp.

.

one

with

share

new

rights to

for

each

held

15

of

record

June

14

Price—$21. Proceeds—
corporate purposes.
Office—441 Stuart St., Boston. Underwriter—None.

For loans

New

to

expire

June

subsidiaries

29.

and

other

Plan

Realty Corp.
1962 filed 150;000 class A shares. Price—$11.
management company. Proceeds
—For debt repayment,
working capital, and general
corporate purposes. Office—369 Lexington Ave., Nt Y.

Jan.

24,

Business—A real estate

Underwriter—None.
New

York Testing Laboratories, Inc.
(6-25-29)
29, 1962 filed 50,000 common. Price—$5. Business—
Analyzing and testing of electronic, chemical and other
materials. Proceeds—For plant
relocation, equipment,
and working capital. Office—47 West St., N. Y. Under¬
writer—Robbins, Clark & Co., Inc., N. Y.

Jan.

Nopco Chemical Co. (7/2-6)
May 4, 1962 filed $5,800,000 of conv. subord. debentures
due
1987
to be offered for subscription
by common
stockholders on the basis of $100 of debentures for each
20

shares

held.

Business—Manufacture

of

industrial

Jan. 5, 1962

chemical

Business—Production of electronic parts and components

urethane

and

Place, Newark, N. J.
Underwriter—White, Weld & Co., Inc., N. Y.

the furnishing of consulting services in the radioengineering field. Proceeds—For debt repayment, equip¬

specialties,

mainly

organic

foam plastics. Proceeds—For
and construction. Office—60 Park

in

nature,

and

debt repayment

Number 6168

Volume 195

Nordon Corp.,

.

,

.

Orr

Ltd.

,

1962 filed 375,000

29,

Nor da Essential Oil & Chemical

(7/31J

Co., Inc.

March 20,

1962 filed 200^000 class A shares. Price—By:
amendment (max. $15). Business—Manufacture, process¬
ing and distribution off natural and synthetic essential

oils, flavor, essences, etc., to food and drug industries',.
Proceeds ;— For debt repayment, working capital and
other corporate purposes. Office—601 W.'26th St., N.
Underwriter—S. D. Fuller & Co., N. Y.
,
'
. ~
'

Corp..
••
/
• / /
: "
T2
1962 filed $5,000,000 of 6% conv. subord de-,
bentuTeS due 1977.
Price—By amendment.; Business—f
.Nortex Oil & Gas

April 27,

Production of crude oil and natural gas.
Proceeds—For
debt repayment, working capital and other corporate
Carreau

Office—1900 Life Bldg.y Dallas.^ Underwriter—
Co., N. Y.

&

• Norway
(Kingdom of)
May 28, 1962 filed $25,000,000 external loan bonds due'
June 15,. 1977.
Price^By amendment; Proceeds—For
acquisition
and
importation
of
capital
equipment.
Underwriters—Harrfrnari
Ripley & Co., Inc.; Kuhn,
Loeb & Co., Inc.;
Lazard Freres & Co., and Smith.
Barney & Co.; Inc., N. Y; OffeHn#post¬

poned.

•

Norwood's

Superettes, Inc.
April 23, 1962 ("Reg. A") 75,000 common.
Price—$4.
Business—Operation of Superettes.
Proceeds—For ex¬
pansion and working capital. Office—10 Merrick Lane,'
Northampton, Mass. Underwrite? — Walker, Wachtel &
Co., Inc., Boston. «
;
.
*
.

,

Nucl63i*

lnc«

Data

' *

*

-

'•

~ *

MaTCh 28y 1962 filed 170,000 common, of which 30,000
are
to be offered by company and 140,000 by stock¬
holders. Prices—By amendment (max. $12). Business-

Design, development and assembly of instruments fof
detection, measurement and analysis of nuclear radia¬
tion., Proceeds—For working capital. Office—3833 W.
Beltline
mick &

Highway, Madison, Wis.
Co., Chicago.

Underwriter—McCor'/,/'

Engineering Corp.
1962 filed 100,000 common. Price—By amend¬

March 29,

(max. $15).

Business—Research

and

development
on
contracts using radioactive trLeers; precision radio¬
activity measurement; production of radioactive isotopes
and the furnishing of consulting and radiation measure¬
Proceeds—For

services.

ment

equipment,

debt repay¬
Address—P. O.

ment, expansion and working capital.
Box 10901, Pittsburgh. Underwriter—Johnston, Lemon &
Co., Washington, D. C.
Nuveen Tax-Exempt

gations

of states, counties and municipalities
S., and political subdivisions thereof which

of

the

are

be¬

lieved tcr be exempted from Federal income taxes. Pro-"
eeeds—For investment. Office—Chicago. III. Sponsor-*
John Nuveen & Co., 135 So. La Salle St., Chicago. Of¬
fering—Expected in mid-July.

Nuveen

17,

Bond Fund, Series

Tax-EXempt

1961

$15,000,009

filed

6f

units

4

representing

fractional interests

hi5 the Fund. Price—By amendment
Business-—The Fund will invest in interest-bearing obli¬

gations of states, counties, and municipalities of the U. S..<
and political subdivisions thereof which are believed
"

to be exempted
For

investment.

from Federal income taxes. Proceeds—

Office—Chicago,

Sponsor—John

III.

outstanding shares of capital

•

-

Land Development Corp.

Pacific Westates

Note-—This company was

basis

of

formerly named Westates Land

17 shares
Business—Design, manufacture aind

$100 of debentures for each

Price—At par.

and defense electronic

consumer

products.

Com¬

Pennsylvania Mutual

Proceeds—For

Proceeds

Penta Laboratories, Inc.
April 23, 1962 filed 85,920 common. Price—By amend¬
ment
(max. $4.25). Business—Development, manufac¬
ture and marketing of electron vacuum tubes. Proceeds
—For selling stockholders.
Office—312 N. Nopal St.,
Sattta

Perfect

(max. $20). Business—Photofinishing and the dis¬
tribution of photographic equipment and supplies. Pro¬
ceeds—For

N. Y.

named.

Perma-Bilt Enterprises, Inc.
May 28, 1962 filed 230,000 common. Price—By amend¬
ment (max. $8). Business—Merchandising, sale and con¬
struction of homes. Proceeds—For acquisition and devel¬

Development Corp.
March 12, 1962 filed 400,000 class A stock.
Price—$10.
Business—A real estate holding and development com¬
pany. Proceeds—For general corporate purposes. Office
—70 N. Main St., Freeport, L. I., N. Y. Underwriter—
Underbill Securities Corp., N. Y.
&

opment of land, and other corporate purposes.

Blvd., San Leandro, Calif. Underwriter—•
Robert A. Martin Associates, Inc., N. Y.
Permeator

in Aug.

March

29,

International, Inc.
1962 filed
150,000

tons.

Proceeds—For

Office—1331 Halsey
Baruch Brothers &

(6/25-29)

equipment

Price—$5.50.
synthetic pearl but¬

and

working

St.,. Brooklyn, N. Y.

capital.

ton, Taylor & Co., Inc., N. Y.

Underwriter—

Co., Inc., N. Y.

•

Olympia Record Industries, Inc.
)
May 29, 1962 filed 66,000 class A shares.

Price—$4.

Business—Wholesale distribution of phonograph records
and' albums. Proceeds—For debt repayment, inventory,

product expansion and working capital. Office—614 W.
51st St., N. Y.
Underwriters—Gianis & Co., Inc. (and
Jed' L. Hamburg Co., N. Y. Offering—In September.
Optech, Inc.
Dec.

26, 1961 filed 160,000 common. Price—$3. Business
—Research, development and fabrication of materials
used
and

N.

J.

in

optical electronics. Proceeds—For equipment
working capital. Office—246 Mailt St., Chatham.
Underwriters—Stnne.

A^kerrna#

Co..

Inc., and

Heritage Equity Corp., N. Y. Offering—In July.
Orbit Stores, Inc.
May 28, 1962 filed 100,000 common. Price—By amend¬
ment (max. $6).
Business—Operation of two discount

type department stores. Proceeds—For equipment,- in¬
ventory, expansion and working capital.
Office—725
William
T. Morrissey
Blvd., Boston.
Underwriter—
None.,
••-y/v-//
,

•' Orion

Electronics Corp.

(7/2)

1961 filed 100,000 common. Price—$3.50. Busi¬
ness—The manufacture of precision electronic sub-sys¬
Aug. 28,

tems

for

the

generation; detection and control of fre¬

quencies up through the microwave region. Proceeds—
For expansion, eauipment and1 working capital. Addres»
—Tuckahoe. N. Y. Underwriter—A. D. Gilhart & Co.

Inc.,- N. Y. C.




/

Perpetual Investment Trust
Nov.

Inc. (6/18-22)
filed $2,000,000 of conv. subord.

tures

due

1962

1977.

(For the balance) Net asset value plus 8% commission.
Proceeds-i-For

Price—At

Parkway Laboratories, Inc.
Dec. 6, 1961 filed 160.000 commUn. Price—$5.

Business—A real estate investment trust.

investment.
D.

C.

Office—1613

Eye

Underwriter—Sidney

St.y N. W., Washington,
Z. Mensh Securities CO.,

Washington, D. C.
•

Pet Milk Co.

(6/21)

29, 1962 filed $20,000,000 of s. f. debentures due
1, 1982. Price—By amendment. Proceeds—For an
acquisition and repayment: of debt. Office—Arcade Bldg.,
St. Louis; Underwriters—Kidder, Peabody & Co., Inc.;
May

Business

June

—Manufacture

of drugs and pharmaceuticals. Proceeds
acquisition, research and other corporate pur¬
poses. Office — 2301 Pennsylvania Ave., Philadelphia.
Underwriter—Arnold Malkan & Co., Inc., N. Y.

v-For

1961 filed 500,000 shares of beneficial interest.
the first 10,000 shares) $10.80 per share.

9,

Price—(For

deben¬
par.
Business—Operation of
drug stores and licensed departments in membership de¬
partment stores. Proceeds—For expansion, debt repay¬
ment; redemption of preference stock and other corpo¬
rate' purposes.
Office—2323 Grand Ave., Kansas City,
Mo. Underwriter—Scherck, Richter Co., St. Louis.
<

April 30,

;

common

corporate purposes. Office—445 Park Ave., N. Y.
Underwriters—Irving Weis & Co., and Godfrey, Hamil¬

Parkview Drugs,

common.

and sale of

1962

eral

pike, Mineola, N. Y. Underwriter—A. L. Stamm & Co.,

Business—Manufacture

18,

ture, use and sale of a patented tool, "Permeator," used
in completion of oil and gas wells. Proceeds—For gen¬

Paragon Pre-Cut Homes, Inc.
Aug. 25, 1961 filed 112,500 common. Price—By amend¬
ment. Business—Sale of pre-cut (finished) homes. Pro¬
ceeds—For working capital. Office—499 Jericho Turn¬
N. Y. Offering—Postponed.

Oceana

Corp.
filed 300,000

to be offered for
subscription by stockholders of National Petroleum
Corp. Ltd., parent, on the basis: of one share for each
15 National shares held. Price—$5. Business—Manufac¬
May

\

•

Office—

319 MacArthur

•
Papert, Koencg, Lois, Inc.
May 10, 1962' filed 100,000 class A shares. Price—By
amendment (max. $8)r. Business—An advertising agency.
Proceeds—For selling stockholders.
Office—9 Rocke¬
feller Plaza, N. Y. Underwriters—Andresen & Co. ahd

Nuveen & Co., 135 So. La Salle St., Chicago.

selling stockholders. Office—4747 N. Broad
Philadelphia. Underwriter—Bear, Stearns & Co.,

St.,

repayment, equipment, and other
Office—39 Broadway, N. Y. Under¬

Oppenheimer & Co., N. Y. Offering—Expected

Price—By amend¬

ment

debt

Realty

Photo, Inc. (6/25-29)
14, 1962 filed 154,800 common.

Feb.

Co., Charlotte, N. C.

Beryllium Corp.
Feb. 28s, 1962 filed 100,000 Common. Price—$5. Business
—Company plans to mine for beryl ore in Argentina.

PanAm

Barbara, Calif. Underwriter—Francis J. Mitchell
Co., Newport Beach, Calif.

&

Pan American

be

debt repayment and acquisition and
Address — 2220 Philadelphia Saving

Imminent.

filed

For

St., N. Y.
(same ad¬

Inc.

Fund Bldg., Philadelphia. Underwriters—Stroud & Co.,
Inc., Philadelphia, and Walston & Co., N. Y. Offering-

(max.

—

For

—

working capital.

100,000 capital shares. Price—By
$19).
Business—Writing / of life,
health, accident and hospitalization insurance. Proceeds
—For working capital. Office—1310 Lady St., Columbia,

Proceeds

Wall

Co.,

Pennsylvania Real Estate Investment Trust
21, 1962 filed 500,000 shares of beneficial interest.
Price—$10. Business—A real estate investment company.

velopes, packaging materials of variUUs kinds, wrapping
stationery, and school supplies. Proceeds — For
selling stockholders. Office—198 W. Alameda, Denver.
Underwriter—Francis I. duPont & Co., N. Y.

Underwriter—R. S. Dickson &

&

Feb.

paper,

S. C.

Office—60

investment.

dress).

Paper Industries, Inc.

1962

Fund, Inc.

Underwriter—Sackville-Pickard

March 30, 1962 filed 150,000 class A common. Price—By
(max. $13). Business—Manufacture of en¬

amendment

Reading, N. J. Underwriter—Mortimer B. Burnside
Co., Inc., N. Y. Offering—Temporarily postponed.

March 21, 1962 filed 1,000,000 capital shares. Price—By
amendment (max. $10.29). Business — A mutual fund.

amendment

M&rch 28,

&

repayment, inventory and working capital.
St., Lynbrook, N. Y. Underwriter-rCo., Inc., N, Y.
Wilbur

Port

&

alstf installs and services its TV receivers and
stereophonic units, and manufactures plywood doors.
Proceeds—For
debt
repayment.
Office—12333
W.
Olympic
Blvd.,
Los
Angeles.
Underwriter—Kidder,
Peabody & Co., Inc.y N. Y.
Pak-Weli

(6/25-29)

Corp.

Pellegrino Aggregate Technico, Inc.
7
Aug. 10, 1961 filed 130,000 class A common shares. Price
—$5. Business—The manufacture of building materials.
Proceeds—For payment of income taxes and loans and
for working capital. Office—Woodbridae-Carteret Road,

pany

•

debt

Kordan

;

Packard-Bell Electronics Corp.
(6/25-29)
May 4, 1962 filed $5,023,800 of conv. subord. debentures
due 1977 to be offered for subscription by stockholders
the

Business—

par.

22, 1962 filed 120,000 common, of which 100,000
are to be offered by the company and 20,000 by
stock¬
holders. Price —• $4. Business — Distribution of electric
parts and components to industrial customers. Proceeds
Office—19

Development Corp.

held.

Peerless Radio

—For
-

Sept. 28, 1961 filed $1,500,000 of 7% convertible subord.
debentures due 1976 and 300,000 common shares to be
offered in units, each consisting of $100 of debentures
and 20 common shares. Price—$200 per unit. Business—
General real estate. Proceeds—For debt repayment and
working capital. Office
9412 Wilshire Blvd., Beverly
Hills, Calif. Underwriter — Morris Cbhon & Co;, N.^ Y,

Price—At

1974.

March

and Schwabacher & Co., San Fran- ;

Offering—Indefinitely postponed. /

due

—

ceeds—Fof the selling stockholder Office—35124 Alvarado-Nfles Road, Union City, Calif. Underwriters—First

sale of

debentures

f

convertible subordi¬

construction, sale of liquid asphalt, production and
sale of concrete, sand, gravel and crushed stone. Pro¬
ceeds
For debt repayment, equipment, purchase of
plant and other corporate purposes. Office—50 Haarlem
Ave., White Plains, N. Y. Underwriter—First Albany
Corp., Albany, N. Y.

(par 50 cents) to be sold by stockholders. Price—
Business—The manufacture of steel products. Pro¬

California Co., Inc.,

Peckham Industries, Inc.
April 2, 1962 filed $500,000 of 6%
Road

j;, Pacific, States Steel Corp.
June 21, 1961 filed 100,000

cisco (mgr.).

C.

nated

stock

writer—To

—

OCt.

Ala.

Mining Co., Inc.
1962 filed 900,000 common/Price—$1. Business
—Mining. Proceeds—For equipment and working capi¬
tal. Address—Creede, Colo. Underwriter—None,

corporate purposes.

Bond Fund, Series 3

Oct. 17, 1961 filed $15,300,000 of units representing frac¬
tional interests in the Fund. Price
By amendment
Business—The Fund will invest in interest bearing obli¬
U.

Address—Opelika,

Outlet

$6.

brewery. Proceeds—For selling stockholders. Office—
Parkway, San Antonio, Tex. Underwriters—A. Allyn & Co., Chicago and Dewar, Robertson & Pancoast, San Antonio.
312 Pearl

Palmetto State Life Insurance Co.

Nuclear Science &

ment

capital.

working

and

Underwriter—None.

on

•

*

tising

55

a

May 1, 1962 filed 285,000 common. Price—$10.50, Busi¬
ness—Company's subsidiaries manufacture cartridge tapev
recorders and programs therefor and men's and boys'
dress trousers.
Proceeds—For debt repayment, adver¬

Feb. 28,

Hills, Calif.

purposes.

Enterprises, Inc.

(J. Herbert)

.

capital shares, of which
100,000 are to be offered by company and 273,000 by
stockholders. Price—By amendment (max. $6). Busi¬
ness—Acquisition and development of oil and natural
gas' properties.
Proceeds—Fof drilling expenses and
working capital. Office ;— 5455 Wilshire Blvd., Los An¬
geles. : Underwriter—Gregory-Massarf,
Inc.,
Beverly
March

(2807)

The Commercial and Financial Chronicle

an

G. H.
/

Walker

&

Co., N. Y., and Julien Collins & Co.,

Chicago.

...

•

Paul, Harris Stores, Inc. (6/21)
April 2, 1962 ("Reg. A") 40,000 class A common. Price
—$7.501. Business—Operation of wearing apparel stores.
Proceeds—For equipment and working capital. Office—
2920' N. Tibbs, Indianapolis. Underwriters—Kiser, Cohn
& Shumaker, Indianapolis and Cruttenden, Podesta &
Miller, Chicago.
;

Petro-Capital Corp.
28, 1962 filed

March

Business—A

small

556,700

business

common.

investment

Price—$11.

company.

Pro¬

ceeds—For

general corporate purposes.
Office—6130
Sherry Lane, Dallas. Underwriter—McDonnell & Co.,
New York. Offering—Expected sometime in July.

;i

Payrn Save Corp. (6/18-22)
April 27, 1962 filed $1,200,000 of conv. subord. deben¬
tures due 1977, also 40,576 common shares to be offered
by stockholders. Price—By amendment (max. $17 for
common.). Business—Operation of hardware, drugstore
and
nurseries
businesses.
Proceeds—For
expansion,
working capital and other corporate purposes. Office—
514-524 Pike St., Seattle. Underwriter—Dean Witter &
Co.,. San
Pearl

shares held of record
Price

22.
of

a

(6/25-29)

March 30/ 1962 filed 148,300s common. Price—By amend¬
ment (max. $26). Business—Company owns and operates

—

wide

products

in

$33

range

per

of

May 29. Rights will expire June

share.. Business — Manufacture
electronic, electrical and other

the Netherlands and

30 other countries fot

world. Proceeds—For general
torporate purposes. Office—Eindhoven, The Netherlands.
Dealer-Manager—Smith, Barney & Co., N. Y.
sale

Francisco.

Brewing Co.

Philips N. V.
April 3, 1962 filed 6,153,140 common being offered for
subscription by stockholders on the basis of one new
share for each five common or 15 participating preferred

throughout the free

Continued

on

page

56

56

Continued

The Commercial and Financial Chronicle

(2808)

Promistora

from page 55

"

Pictronics

Corp.

1962 filed 80,000 common. Price—$5. Business
—Manufacture of professional audio visual and sound
recording equipment. Proceeds—Debt repayment, equip¬
ment and working capital. Office—236 E. 46th St., N. Y.
Jan.

18,

be named.

Underwriter—To
;

Inc.

20, 1961 filed $465,000 of 10-year 8% debentures.
Price—$15,000 per debenture. Business—The company
plans to organize and sell real estate syndicates. Pro¬
ceeds—For general corporate purposes. Office—1807 N.
Central Ave., Phoenix.
Underwriter—None.
Dec.

Piggyback Transport Corp.
April 30, 1962 ("Reg. A") 40,000 common. Price—$5.
Business—Loading and unloading of trailers and autos

and forward¬
ing. Proceeds—For equipment, expansion and general
corporate purposes. Office—1200 Seaboard Dr., Hialeah,
jFla. Underwriter—Willard Co., Ill Broadway, N. Y..;: v
from

;

Prosper-Way, Inc.
Feb. 7, 1962 filed 85,500 common.
Price—$3. Business
—Development and promotion of "one stop dry cleaning
and laundry" establishments, and the sale and main¬
tenance of dry cleaning and laundry equipment. Pro¬
ceeds—For real estate, sales promotion, acquisitions, and
working capital. Office—2484 W. Washington Blvd., Los
Angeles, Calif. Underwriters—Crosse & Co., Inc., V. S.
Wickett & Co., Inc. and Thomas, Williams & Lee, Inc,
N. Y.

Restaurants, Inc.

Pioneer

1961 filed 125,000 common, of which 75,000 are
to be offered by the company and 50,000 by a selling
stockholder.
Price—By amendment.
Business—Opera¬
tion of six restaurants in Sacramento.
Proceeds—For

expansion, debt repayment and working capital. Office
—1626 J St., Sacramento.
Underwriter—Stewart. Eu-

Plantation

Inc.

30,

1962 filed

Plasticon

Chemicals, Inc.

7, 1962 filed 150,000 class A capital shares. Price
—$3.50. Business—Manufacture of a plastic protective
coating and a water proofing solution. Proceeds—For
inventory, equipment, sales promotion, and other cor¬
porate purposes. Office—507 Fifth Ave., N. Y. Under¬
writer—Arden Perin & Co., N. Y. Offering—Late July.
Feb.

Playboy Clubs International, Inc.
May 28, 1962 filed 270,000 common. Price—By amend¬
ment. (max. $7). Business—Company is engaged in the
ownership and franchising of Playboy Clubs. Proceeds—
For debt repayment and general corporate purposes. Of¬
fice—232 E. Ohio St., Chicago. Underwriter—Divine &
Fishman, Inc., Chicago.
;

PoHcy-Matic Affiliates, Inc.
Oct. 16, 1961 filed 200,000 capital shares. Price—$3.25.
Business—Leasing of insurance vending machines. Pro¬
ceeds—General corporate purposes. Office—1001 15th St.,
N. W., Washington, D. C. Underwriter—To be named.

Polytronic Research, Inc.

I

June 7, 1961 filed 193,750 common shares, of which 150,000 will be sold for the company and 43,750 for stock¬

holders. Price—By amendment. Business—Research and

engineering

development,

production of certain
missiles, oscilloscopes,
electronic vending machines and language teaching ma¬
chines. Proceeds—For expansion, repayment of debt and
working capital. Office—7326 Westmore Rd., Rockville,
Md. Underwriters—Jones, Kreeger & Co., and Balogh &
Co., Washington, D. C. Note—This offering was post¬
poned indefinitely.
electronic

devices

for

28,

and

aircraft,

Premier Microwave

Prudent Realty

Investment Trust

May 21, 1962 filed 100,000 shares of beneficial interest.
Price—$10.
Business—A real estate investment trust.
Proceeds—For
investment.
Office—1324
Walnut
St.,
Philadelphia.
Public

Loan

Corp.

Price—By amend¬

(max. $17). Business—Operation of small loan of¬
fices. Proceeds — For general corporate purposes. Office
—41 Chenango
St., Binghamton, N. Y. Underwriter—
A. G. Becker &

Co., Inc., Chicago. Offering—Indefinite¬

ly postponed.
Public Service Co. of New Hampshire*

June

5,

1962 filed $24,000,000

(6/27)

<

y<

of first mortgage

bonds,
due 1992. Proceeds—To redeem outstanding 5%% bonds,
due 1987, 5%%
bonds, due 1989, and 5% bonds, due
1990, repay short term loans, and for construction. Of¬
fice—1087 Elm St., Manchester, N. H.
Underwriters—
(Competitive). Probable bidders: Halsey, Stuart & Co.
Inc.; Equitable Securities Corp.-Eastman Dillon, Union
Securities & Co. (jointly); Kidder, Peabody & Co.-Blyth
& Co., Inc. (jointly); White Weld & Co.; Lehman Broth¬
ers.
Bids—June 27 (11 a.m. EDST) in Room 166, Parker
House, Boston. Information Meeting—June 25 (3:30 p.m.
EDST) at the same address.
Publishers

Co., Inc.
Nov. 28, 1961 filed 541,000 common. Price—By amend¬
ment. Business—Book publishing. Proceeds—For an ac¬
quisition and other corporate purposes. Office—110b Con¬
necticut Ave., N. W., Washington, D. C. Underwriter—
Roth & Co., Inc., Philadelphia.
'
Rico Brewing Co., Inc.
(6/25-29)
23, 1962 filed $2,500,000 of sinking fund deben¬
tures due 1977 and 500,000 common shares to be offered
in units consisting of a $10 debenture and two common
shares. Price—$18 per unit. Business—Company plans
to
produce beer and natural malta
(a non-alcholic
beverage). Proceeds—For construction and operation of
a
brewery and working capital. Address—San Juan,
Puerto Rico. Underwriter—Merrill Lynch, Pierce, Fenner
& Smith, Inc., N. Y.
Puerto

March

Puget Sound Power & Light Co. (6/26)
1962 filed 150,000 preferred
(par $100). Price
—By amendment (max. $103). Proceeds—For prepay¬
June 1,

ment

of

bank

loans

and

construction.

Office—1400

Washington Bldg., Seattle. Underwriters—Blyth & Co.,
Inc., and Merrill Lynch, Pierce, Fenner & Smith Inc.,
New York.

filed 125,000 common, of which 50,000
are
to be offered by the company and 75,000 by stock¬
holders. Price—By amendment (max. $12). Business—
Design and manufacture of microwave components. Pro¬
ceeds—For debt repayment and working capital. Office
—33 New Broad St., Port Chester, N. Y. Underwriter—
Van Alstyne, Noel & Co.,, N. Y. Offering—Postponed.

• Premiums Infinite, Inc.
1, 1962 ("Reg. A") 25,250 common. Price—$10.
Business—Development and exploitation of new ideas,
designs, products and inventions. Proceeds—For equipJune

metn salaries and other corporate purposes .Office—56 %

Merchant's Row, Room 523, Rutland, Vt.
None. "■ *
''

Underwriter—

working capital. Office—18 Lancaster Rd., Union, N. J.
Underwriter—Jacey Securities Co., N. Y.
•

Prestige Capital Corp.
19, 1961 filed 200,000 common. Price—$5. Business
investment company. Proceeds—For
investment. Office—485 Fifth Ave., N. Y. Underwriter

—

Primex Equities

RF

Interonics, Inc. (7/2-6)
30, 1961 filed 40,000 common. Price—$5. Business
of radio frequency interference filters
and capacitors. Proceeds—For equipment, working cap¬
ital and other corporate purposes. Office—15 Neil Court,
Oceanside, N. Y. Underwriter—Arnold Malkan & Co—Manufacture

N. Y.
Radio

Business—A

Proceeds—For

real

estate

Price—By

investment

firm.

property

acquisitions and working cap¬
Hawley St., Binghamton, N. Y. Under¬
writers—D. H. Blair & Co., and Troster, Singer &
Co.,
N. Y. Offering—Indefinitely postponed.
ital.

•

Office—66

Product Research of Rhode

July 28, 1961 filed 330,000
Business
used

in

—

The

the

Island, Inc.
shares. Price—$2.05.
vinyl plastic products

common

manufacture

automotive,

of

marine

and

Proceeds—For

household

fields.

repayment of debt, new equipment and
working capital. Office —184 Woonasquatucket Avenue,
North Providence. R. I. Underwriter—Fred F. Sessler &

Co., Inc., N. Y. Offering—Postponed.




Electric

Service

Co.

of

New

Jersey,

Inc.

(6/25-29)
Jan. 23, 1962 ("Reg. A") 55,000 common, of which 50,000
will be offered by the company and 5,000 by stockhold¬

Price—$5. Business—Wholesaling of electronic parts,
supplies and equipment and the retailing of high-fidel¬
ity and stereophonic equipment and components. Pro¬

ers.

common.

the

electric

repayment

and

electronic

fields.

Proceeds—For

debt

and

working capital. Office—455 W. Main
St., Wyckoff, N. J. Underwriter—Myron A. Lomasney &
Co., N. Y.
;•
' /
,

Resin Research

Laboratories, Inc.

1962 filed 105,000 common. Price—$3.50. Busi¬
Operation of a laboratory for contractual re¬
search, development and engineering in the chemical
field. Proceeds—For expansion of facilities, debt repay¬
ment and working capital. Office—396-406 Adams
St.,
Newark, N. J. Underwriter—Keene & Co., Inc., N. Y.
—

Richmond Corp.

Dec. 21, 1961 filed 142,858 common. Price—$7. Business
—A real estate investment
company. Proceeds—For debt

repayment and general
K

corporate

purposes.

Office—220

St., N. W., Washington, D. C. Underwriter—Hirschel
Co., Silver Spring, Md. Offering—Indefinite.
Ridgerock of America, Inc. 29,
1961
filed
100,000
common.

Dec.

Price—$2.50.;

Business—Production of stone facing for buildings. Pro¬
ceeds—For debt reduction and general corporate pur¬

Address—Sebring, O. Underwriter—To be named.

poses.
•

Ridgewood Financial Corp. (6/25-29)
March 30, 1962 filed 60,000 common, of which 11,250 are
to be offered by company and
48,750 by stockholders.
Price—By amendment (max. $9.75). Business—Owner¬
ship of stock of Ridgewood Savings Loan Co. of Parma,
in Cleveland. Proceeds—For organizational expenses and
investment. Office—1717 E. 9th St., Cleveland. Under¬
writer—Fulton, Reid & Co., Inc., Cleveland.
Riker

Delaware Corp.

March 29, 1962 filed 200,000 class A common and 50,000
warrants to be offered in units of four shares and one
warrant.'

Price—$30 per unit.
development and management

Business—A real
company.

estate

Proceeds—For

construction, acquisitions, debt repayment and working
capital. Office—LaGorce Sq., Burlington, N. J. Under¬
writer—H. Neuwirth & Co., Inc., N. Y.
Rite

Jan.

Electronics, Inc.
1962 filed 62,000

29,

(6/25-29)

Price—$6. Business
receiving tubes, television
picture tubes, and electroinc components, parts and
equipment. Proceeds—For an acquisition, equipment and
working capital. Office—1927 New York Ave., Hunting¬
ton Station, N. Y.
Underwriter—Robbins, Clark & Co.,
Inc., New York.
—Sale

•

and

distribution

common.

of

Roadcraft Corp.

(6/25-29)
26, 1961 filed 400,000 common. Price—By amend¬

Dec.

ment. Business—Design, manufacture and sale of mobile
homes and office trailers. Proceeds—For general cor¬

porate purposes/ Office—139 W. Walnut Ave., Gardena,
Calif. Underwriter — Vickers, MacPherson & Warwick.

Inc., N. Y.
•

Roblin Seaway

Industries, Inc.

(6/25-29)

March 29, 1962 filed $1,000,000 of 6% convertible sub¬
ordinated debentures due 1982. Price—At par. Business

—Purchase and sale of scrap steel and other metals and
operation of a rolling mill, a stevedoring business and
demolition companies. Proceeds—For general cor¬
porate purposes. Office—101 East Ave., North Tonawanda, N. Y. Underwriter—Brand, Grumet & Seigel, Inc.,

New York.

Rosenfeld

(Henry), Inc.

(6/25-29)

March 23, 1962 filed 120,000 common. Price—By amend¬
ment

(max.

$10).

Business—Design,

manufacture and
a selling stock¬
holder. Office—498 Seventh Ave., N. Y. Underwriter—
Robert A. Martin Associates, Inc., N. Y.
women's dresses. Proceeds—For

Royaltone Photo Corp.
29, 1961 filed 300,000

Nov.
are

common, of which 100,000
to be offered by the company and 200,000 by stock¬
Price — By amendment.
Business — Develops

holders.

Oct.

—A small business

Corp.
1961 filed 335,000 class A

50,000 are
Electronic
Specialty Co., parent. Price—$5. Business—Design and
manufacture of regulating and control devices used in

sale of

Queensway Mines Ltd.
March 15, 1962 filed 150,000 capital shares. Price—$1.
Business—Mining. Proceeds—For debt repayment, sur¬
veying and general corporate purposes. Office—Suite
1212, 55 York St., Toronto. Underwriter—Asta Corpora¬
tion Ltd., Toronto.
-V,
' /

Oct.

«—To be named. Note—This registration was withdrawn.

(6/25-29)

two

Pulp Processes Corp.
Sept. 20, 1961 filed 140,000 common. Price—$5. Business
—Development of pulping and bleaching devices. Pro¬
ceeds—General corporate purposes. Office—Hoge Bldg.,
Seattle, Wash. Underwriter—Wilson, Johnson & Higgins,
San Francisco. Note
This offering was temporarily
postponed.

•

Corp.

March 30, 1962 filed 150,000 common. Price—$5. Business
—Real estate. Proceeds—For purchase of mortgages, and

amendment.

Regulators, Inc.

Jan. 29, 1962 filed 75,000
common, of which
to be offered by the company and
25,000 by

.

.

Nov. 27,

—

Co., Inc.

1962

Prescott-Lancaster

Properties Corp. of America1
1962 filed 300,000 class A shares. Price—By
amendment (max. $16); Business—Company owns cer¬
tain real
estate, general insurance agency and a mort¬
gage servicing company. Proceeds—For debt repayment.
Office
745
Fifth Ave.,
N.o Y. Underwriter — Stanley
Heller & Co., N. Y. Offering—Expected in mid-July.

&

Underwriter—None.

ment

100,000 common, of which 70,000
are to be offered by company and 30,000 by stockhold¬
ers.
Price—$5. Business—Manufacture of wrought iron
furniture. Proceeds — For inventory, advertising and
working capital. Office—4601 Georgia Rd., Birmingham,
Ala. Underwriter—Godfrey, Hamilton, & Taylor & Co.,
N. Y. Offering—Expected sometime in July.
March

May 15, 1962 filed 100,000 common. Price — By amend¬
(max. $5.50). Business—Operation of a chain of
dry-cleaning and laundry stores. Proceeds—For selling
stockholders. Office — 48-12 25th St., Astoria, N. Y.
Underwriter—Edwards & Hanly, Hempstead, L. I., N. Y.

March 28, 1962 filed 170,000 common.

Patterns,

Thursday, June 14, 1962

April 27,

ness

ment

San Francisco. Offering—Tem¬

banks, Myerson & Co.,
porarily postponed.

.

Feb. 27,

Prosperity Cleaners & Laundries, Inc.

freight cars, and freight consolidation

Dec. 21,

Feb.

ploration of mining claims in Canada. Proceeds—For
general corporate purposes. Office—36 Yonge St., To¬
ronto, Ontario, Canada. Underwriter—A. C. MacPherson & Co., Toronto.
*
'
f

Taranton

.

Real

Ltd./

April 24, 1962 filed 750,000 capital shares, of which 500,000 are to be offered by company and 250,000 by stock¬
holders. Price—50 cents. Business—Acquisition and ex¬

.

Pierce Proctor Schultte &

Investment Co.,

Gold Mines,

.

and

film.

prints

color,

and black and white photographic
For equipment and working capital.
Ave., N. Y. Underwriter — Federman,
Co., N. Y. Offering—Expected sometime in

Proceeds

Office—245

Stonehill &

—

7th

July.

Royalty Stores, Inc.
May 29, 1962 filed 75,000

common.
Price—$3.75. Busi¬
ness—Operation of discount stores and wholesale distri¬

bution

of

general

merchandise.

Proceeds—For

expan¬

sion, advertising, and other corporate purposes. Office
—10 Charles St., Floral Park, N. Y. Underwriter—R. p.
Raymond & Co., Inc., 26 Broadway, N. Y.

Ruby

Silver

Mines,

Inc.

ceeds—For debt repayment, expansion, moving expenses
and working capital. Office—513-15 Cooper St., Camden,

Jan. 2, 1962 ("Reg. A") 2,400,000 common.
Price—12%
cents. Business—Exploration and development of mineral

N. J. Underwriter—Lee-Mosson & Co., Inc., N. Y.

deposits. Proceeds—For debt repayment and general
corporate purposes. Address—Box 1088, Wallace, Idaho.

Ram

Tool

Corp.
May 16, 1962 filed $800,000 of 6%% subord. debentures
due May 31, 1972 (with attached warrants).
Price—By
amendment.

Business—Manufacture

and

sale

of

elec¬

trically powered tools, and hand garden tools. Proceeds
—For debt repayment and working capital.
Office—411
N.

Claremont

Ave., Chicago. Underwriters—Aetna Se¬
Corp., N. Y. and Cantor, Fitzgerald & Co., Inc.,
Beverly Hills, Calif.
/
curities

...

Underwriter—Pennaluna & Co., Spokane, Wash.

Sage International Inc.
April 30, 1962 filed 150,000

capital shares. Price—By
(max. $13). Business—Operation of mem¬
bership discount department stores. Proceeds—For ex¬
pansion and inventories.
Office—315 S. Beverly Dr.
amendment

Beverly Hills, Calif. Underwriters—First California
Inc., San Francisco and Allen & Co., N. Y.

Co!

Volume

•

Salant

195

Number 6168

.

.

The Commercial and Financial Chronicle

.

School

&

Feb.

23,

Office—330 Fifth Ave., N. Y.—Underwriters—
Kidder, Peabody & Co., and Jessup & Lamont, N. Y.

holders.

Salro

Manufacturing Corp.
March 19, 1962 filed $250,000 of 7% convertible subordi¬
nate debentures due 1972, and 16,500
outstanding com¬
shares to

mon

be

offered in units

consisting of $500 of
Price—$632 per unit. Business

debentures and 33 shares.

April 30,

bags

frames, for certain manufacturers. Proceeds—For
debt repayment, equipment, and working capital. Pro¬

writer—I. R. E. Investors

Corp., Levittown, N. Y. Offer¬

ing—Imminent.

Sampson

Enterprises, Inc. (7/9-13)
Feb. 28, 1962 filed 450,000 common. Price — By amend¬
ment
(max. $8). Business—A holding company for a
real estate concern, motor inn, shopping centers, bowl¬
ing establishments, etc. Proceeds—For debt repayment
and working capital. Office—222 E. Erie St., Milwaukee.
Underwriters
Straus, Blosser & McDowell, Chicago
and Dempsey-Tegeler & Co., Inc., St. Louis.
—

San Francisco

Price—$12.50. Busi¬
ness—A small business investment company.
Proceeds
—For
investment.
Office—400
Montgomery St., San
Francisco. Underwriter—Cantor, Fitzgerald & Co., Inc.,
Beverly Hills, Calif.
Fe

Santa

common.

Drilling Co.

March 30, 1962 filed 160,000 common, of which 100,000
are to be offered by company and 60,000 by stockholders.

Price—By amendment
labor
for

and

oil.

(max. $33). Business—Furnishes
equipment to major oil companies and drills

Proceeds—For

debt

repayment and equipment.
Ave., Santa Fe Springs, Calif.

Equipment Manufacturing Corp.
83,500 common/
Price—$6.
Busi¬
.

•

Saturn

Electronics

Corp.
May 3, 1962 ("Reg. A") 80,000 class A common. Price
•—$3.75.
Business—Design, manufacture, and distribu¬
tion of high fidelity amplifiers, transformers, etc. Pro¬
ceeds—For equipment, inventory, moving expenses and
working
capital.
Office—10665
Harry
Hines
Blvd.,
Dallas. Underwriter—Reese, Scheftel & Co., Inc., N. Y.
Save-Mor
Dec.
conv.
a

Drugs, Inc.
28, 1961 ("Reg. A") $300,000 of 6% 15-year subord.
debentures. Price—At par. Business—Operation of

chain of drug stores. Proceeds—For general corporate

purposes.

Office—3310 New York Ave., N. E., Washing¬

ton. D. C. Underwriter—C. A.

Saw

.<

Mill

River

Taggart, Inc., Towson, Md

Industries, Inc.

(7/2-6)
Price—$5.

March 29, 1962 filed 100,000 common.
ness—Design, development and manufacture

products for home

use.

Busi¬

steel
Proceeds—For working capital.

Office—1051 Saw Mill River Rd.,

Yonkers, N. Y.

Under¬

writer—Arnold Malkan & Co., Inc., N. Y.

Sawyer's

Inc.

.Mar.

26, 1962 filed 240,000 capital shares, of which
140,000 are to be offered by company and 100,000 by
stockholders. Price—By amendment (max. $9). Business
—Manufacture
viewers.

and

distribution

and

of stereo photographs
working capital. Address—

Proceeds—For

Portland, Ore. Underwriter — Straus, Blosser & Mc¬
Dowell, Chicago. Offering—Temporarily postponed.
•

Saxon Paper Corp.

March 30, 1962 filed 200,000 common. Price—By amend¬
ment (max. $9). Business — Wholesale distribution of

printing paper and paper products. Proceeds—For debt
repayment and expansion. Office—240 W. 18th St., N Y

Underwriter—Bear, Stearns & Co., N. Y. Offering—July.
Schaevitz

March

Engineering

(6/25-29)

13, 1962 filed 150,000

common, of which 100,000
by company and 50,000 by a selling
stockholder. Price—By amendment (max. $10). Business
—Design and manufacture of measuring, indicating,
are

to

be

offered

testing and

recording,
craft

and

Address

missile

controlling devices used in

systems.

Proceeds

—

For

air¬

expansion.

U. S. Route 130, Pennsauken, N. J. Under¬
writer—Bear, Stearns & Co., N. Y.
—

Schlitz

(Jos.)

Brewing Co.

March 2, 1962 filed 347,543 common. Price
ment (max. $35). Business—Brewing of
"Old

Milwaukee"

beers.

By amend¬
"Schlitz" and

—

Proceeds—For

holders,. Off ice—235 W.

Galena

writer—Glore, Forgan
definitely postponed.

&

Co.,

selling stock¬
St., Milwaukee. Under¬
Chicago. Offering—In¬

Solid State

$20). Business—Company owns and oper¬
ates TV, radio and FM broadcasting stations. Proceeds
—For selling stockholders. Office—1121 Union Central
Bldg., Cincinnati. Underwriter—First Boston Corp., N. Y.

Feb.

Schlumberger Ltd.
May 11, 1962 filed 700,000

Price—By amend¬
Business—Furnishing of electrical
logging and related services to oil well drillers, and the
ment

design

(max.

and

common.

of

electronic

and

electro¬

mechanical

equipment, components and systems. Pro¬
ceeds—For selling stockholders. Office—408 Bank of the
Southwest Bldg., Houston. Underwriter—Morgan Stan¬
ley & Co., N. Y.
Schneider

(Walter J.)

Corp.

Feb. 28, 1962 filed $5,500,000 of 6Vz% subordinated con¬
vertible debentures due 1977 and 110,000 5-year warrants
to

purchase a like amount of class A common!
The
company plans to offer the securities in 5,500 units (each
consisting of $1,000 of debentures and warrants to pur¬
chase 20 shares) for subscription by holders of its class

A stock and 10% debentures due 1976.

ment.

Business—General

real

estate.

Price—By amend¬
Proceeds—For ac¬

quisition of property. Office—67 W. 44th St., N. Y. Un¬
derwriter—None.




Furniture

Inc.

Co.,

(7/2-6)

1962

Products, Inc.

filed

110,000

(6/25-29)

Price—By

common.

Business—Development, manufacture

semiconductor devices. Proceeds—For
repayment

Salem, Mass.
Day, N. Y.

Security Aluminum Corp. (6/25-29)
Jan. 26, 1962 filed 200,000 common. Price—By amend¬
ment. Business—Manufacture of alumnium sliding win¬
dows and doors. Proceeds—For equipment, moving ex¬
penses and working capital. Office—503 E. Pine Ave.,
Compton, Calif. Underwriter—Vickers, MacPherson &
Warwick, Inc.. N. Y.

Solo
to

are

-

&

company and 6,000 by stockholders.

Business—Operation of coin operated

ment rides for children.

and

Vending Co.

("Reg. A") 60,000 common, of which 54,000

be^ offered by

Price—$5.

sale of

new

working

Amusement

May 4, 1962

amend¬

and

plant, debt
capital. Office—1 Pingree St.,
Underwriter—Tucker, Anthony & R. L.

and

a

working

capital.

amuse¬

Proceeds—For debt repayment

Office—219—9th

St.,

San

Fran¬

Investment

Secu¬

Seg Electronics Co., Inc.
Sept. 28, 1961 filed 110,000 common. Price—By amend¬
ment.
Business—Design and manufacture of networks

cisco.

for data and program transmission, filters, transceivers
and related electronic equipment. Proceeds—For equip¬

Dec. 28, 1961 filed 75,000 common.
Price—By amendment.
Business—Installation of its coin operated laundry equip¬

Searight, Ahalt & O'Connor,
Offering—Temporarily postponed.
—

Selective
Feb.

28,

Financial

B

to

Solon

Life

Inc., N. Y.

D.

Corp.

April 2,

estate

Nov.
p

Underwriter—None.
Underwriter—None.

Office—565 Fifth Ave., N./Y.
*;/•••

capital/ Office

—190 Gruner Rd., Cheektowaga, N. Y*
Underwriter—General Securities Co., Inc., N. Y.

ment (max. $13). Business — Operation of a chain of
junior department stores and self-service discount stores.
Proceeds—For selling stockholders. Office—1325 Warford St., Memphis. Underwriter—New York Securities
Co., 52 Wall St., N. Y.

Shelley Manufacturing Co.

(6/25-29)

Dec. 29, 1961 filed 55,000 common. Price—$6.50.
—Manufacture
of automatic
equipment for

Business
handling
packaged foods, and various food serving devices. Pro¬
ceeds—For equipment, advertising, plant expansion and
working capital. Office—3800 N. W., 32nd Ave., Miami,
Fla. Underwriter—George, O'Neill & Co., Inc., N. Y.
Sierra Pacific Power Co.

(6/26)
1962 filed $5,000,000 of first mtge. bonds due
1992. Office—220 S. Virginia St., Reno, Nev. Underwrit¬
ers—(Competitive.) Probable bidders: Kidder, Peabody
& Co.-White, Weld & Co. (jointly); Salomon Brothers
& Hutzler; Halsey, Stuart & Co. Inc.; Stone & Webster
Securities Corp.-Dean Witter & Co.
(jointly). Bids—
Expected June 26, 1962 (11 a.m. EDST), at 49 Federal
St., Boston. Information Meeting—June 22 (10:30 a.m.
EDST) at 90 Broad St., 19th floor.
;

May

29,

1961

("Reg. A")

100,000

Co., Inc.
Price—$3.

common.

Proceeds—For debt repayment, conversion of

a

boat, and

working capital. Office—3300 N. W. North River Drive,
Miami, Fla. Underwriter—Irwin Karp & Co., Inc., 68
William St., N. Y.
? >
,

^

***+»

-

/

^

'

June

1, 1962 ("Reg. A") $95,000 of 5%
tures (series H) due 1982.
Price—At

'> For retirement of debentures, and working capital., Office—919 W. Peachtree St., N. E., Atlanta, Ga.
Under¬
writer—None.
r
;//:y. / '■
^ ;:v. .v."/ //:

Spears

(L. B.),

Inc.

(7/2-6)

Oct. 30, 1961 filed 65,000 common. Price—$5. BusinessOperation of retail furniture stores. Proceeds — For

working capital. Office—2212 Third Ave., N. Y. Under¬
writer—Arnold Malkan & Co., Inc., N. Y.
Sperti Products, Inc.

Co.

March 30, 1962 filed 236,000 common. Price—By amend¬

•

Wash¬

"

cision control components and associated products. Pro¬
ceeds — For debt repayment, equipment and working

(Sam)

E.

subord., deben¬
par.
Business—
Price—$10.
Proceeds—For con¬ //.Company operates a loan and discount business,I art
:> insurance agency and life insurance concern. Proceeds—

Servotronics, Inc. (6/25-29)
March 30, 1962 filed 125,000 capital shares. Price — $3.
Business—Design, development and manufacture of pre¬

Shainberg

Office—600

Business—Construction and operation of towing boats.

• Southern Discount Co.

investment.

building.

investment.

Southeastern Towing & Transportation

C share of

Properties Corp. * k
*
May 1, 1962 filed 200,000 class A common.
a

Proceeds—For

ington St., Orlando, Fla. Underwriter—None.

Underwriter—None.

of

1962 filed 700,000 common. Price—By amend¬
(max. $13.80). Business—A real estate investment

trust.

—

struction

Underwriter—None.

ment

held.

Business—Real

C.

Southeastern Real Estate Trust

Remaining 94,822 and any unsub¬
scribed shares will be offered publicly. Price—To public*
$6; to stockholders, $5. Business—Company plans to en¬
gage in the consumer finance, mortgage,/ general fi¬
nance and related businesses. Proceeds
For general
corporate purposes. Office*—830 N. Central Ave., Phoe¬
nix.

Industries, Inc.

at designated residential locations. Proceeds—For
selling stockholders. Office—115 L St., S. E. Washington,

offered for

share and two-thirds share for each class

Selective

Mohr

ment

1962 filed

be

J.

rities, San Francisco.

500,000 common, of which 405,000
subscription by holders of the A,
B and C stock of Selective Life Insurance
Co., an affili¬
ate, on the basis of 4 company shares for each class A or
are

Underwriter—Frank

11,

Signalite Inc. (6/25-29)
29, 1962 filed 126,000 common. Price—$4.50. Busi¬
ness—Manufacture, sale and development of glow lamps
for use as indicators and circuit components. Proceeds—
For debt repayment, equipment and working capital.

Nov. 29, 1961 filed 230,000 common of which 200,000 are
to be offered by the company ana 30,000 by stockholders.

Price—By amendment. Business—Manufacture of drug
and food products, electrical and electronic devices and
precision machinery. Proceeds—For the purchase of cer¬
tain patents, repayment of debt, and working capital.
Office—730

Grand

St.,

Hoboken.

N.

J.

Underwriter—•

Blair & Co., N. Y. Offering—Expected in July.

Sports ways,

Inc.

Feb. 20, 1962
offered

filed 175,000 common, of which 50,000 are
by company and 125,000 by a stockholder.
Price—By amendment, (max. $7). Business—Manufac¬
ture and distribution of skin diving equipment and ac¬
cessories. Proceeds—For working capital. Office—7701
E. Compton
Blvd., Paramount, Calif. Underwriters—•
Troster, Singer & Co., and Federman, Stonehill & Co.,
N. Y. Offering—Temporarily postponed.
to be

• Stack
Electronics, Inc.
May 25, 1962 ("Reg. A") 60,000 common.
Price—$5.
Business—Manufacture, sale and distribution of elec¬
tronic
equipment.
Proceeds—For new products and
working capital. Office—45 Washington St:, Binghamton, N. Y. Underwriters—Arnold Malkan & Co., Inc. and
Dean Samitas & Co., Inc., N. Y. Offering—In September.

Stainless

Steel

Products, Inc.

Simplex Lock Corp.
April 20, 1962 filed 20,000 common to be offered for sub¬
scription by stockholders of the company and of Associ¬

May 28;' 1962" filed 100,000 capital shares, of which 75,000
are to be offered by company and 25,000 by stockholders.
Price—By amendment (max. $10). Business—Design, de¬
velopment and manufacture of high pressure, high tem¬
perature ducting systems for use in aircraft and missiles.
Proceeds—For plant expansion, equipment and working
capital. Office—2980 N. San Fernando Blvd., Burbank,
Calif. Underwriter—First California Co., Inc., San Fran¬

ated

$80).

manufacture

1,

ment.

Offering—Indefinitely postponed.

Jan.

•

Brothers

of buildings, repayment of debt and
capital. Office—253 Columbia St., Brooklyn,
N. Y. Underwriter—Albion Securities
Co., Inc., N. Y.

(max.

Sentinel

of

Sokol

working

Scripps-Howard Broadcasting Co.

derwriter

"

of

and modernization

March 20, 1962 filed 375,000 common. Price—By amend¬

—Expected in

1962.

Business—Distribution

Sept. 28, 1961 filed 240,000 common. Price—$2.5u Busi¬
ness—The instalment retailing of
furniture, appliances
and other household goods. Proceeds — For
expansion

ment, research and development, repayment of loans and
working capital. Office—12 Hinsdale St., Brooklyn. Un¬

late

Service Corp.
(7/2-6)
30, 1961 filed 550,000 common.

Price—By amend¬
coin-operated insur¬
vending machines to brokers at sporting centers.
Proceeds—For inventory, advertising and working
capi¬
tal.
Office—420 Lexington Ave., N. Y.
Underwriter—
Pacific Coast Securities Co., San Francisco. Note — This
firm formerly was named National
Vending Ski Insiir- 1
ance Corp.

1962 filed

Underwriter—Dean Witter & Co., Los Angeles. Offering

Office—11015 Bloomfield

Skiers

ment.

injectors,

ment

—

ance

9

Capital Corp.

April 23, 1962 filed 60,000

•

Oct.

of
sterilizers, multi-dose jet vac¬
operating lights
and
other medical
equipment.
Proceeds—For inventories, new products
and moving expenses.
Office—20 North Ave., Larch mont, N. Y.
Underwriters—Coggeshall & Hicks and
Ernest M. Fuller & Co., N. Y.

cine

debt

repayment, acquisition of land and
Office — 1093 Frank Rd., Columbus,
Ohio. Underwriter—H. P. Black & Co.,
Inc., Washington,
D. C,

ness—Manufacture
*

For

57

working capital.

7,

Scientific

—Manufacture and distribution of metal purse and hand-*

ceeds—From the stock sale will go to selling shareholders. Office—413 Thatford
Ave., Brooklyn, N. Y. Under¬

reeds

Pictures, Inc.
1962 filed 60,000 common and 40,000 class A
common, of which 41,864 common are to be offered by
the company; the entire class A and 18,136 common
will be offered by stockholders. Price—By amendment
($35 max.). Business—Company develops, prints, and
finishes "school pictures." Proceeds — For plant and
equipment, acquisitions, and working capital. Office—
1610 N. Mill St.;' Jackson,, Miss. Underwriters—Equi¬
table Securities Corp., Nashville, and Kroeze, McLarty
& Duddleston, Jackson,
Miss. Offering—Postponed.

Salant, Inc. (6/25-29)
1962 filed 150,000 class A shares. Price—By
amendment (max. $35). Business—Manufacture of men's
utility and sports' clothes. Proceeds—For selling stock¬
March

(2809)

cisco.

Office—1933

Heck

Ave., Neptune, N. J. Underwriter—

Milton D. Blauner & Co., N. Y.

Development

basis of
and

one

one

and Research Corp., parent, on the
share for each 10 company shares held,
for each 30 shares of Associated held.

new

share

Price—By amendment, (max. $20). Business—Develop¬
ment and sale of a new type combination lock. Proceeds
—For equipment, research and development and work¬
ing capital, Office—150 Broadway, N. Y. Underwriters—
Charles Plohn & Co. and B. W. Pizzini & Co., N. Y.
Site-Fab,

Inc.

(6/29)

Starmatic Industries, Inc.
Nov.
ment.

1961 filed 100,000 common. Price—By amend¬
Business—Manufacture of boxes, brochures, pack¬

3,

aging materials and packaging machines. Proceeds—For
debt repayment and other corporate purposes.
Office—
252 W. 30th St., N. Y.
Underwriter—R. P. Raymond &
Co., Inc., 26 Broadway, N. Y.
Offering—Expected in
late August.

Feb. 27, 1962 filed 135,000 common. Price
ment

— By amend¬
(max. $4). Business—Construction of homes. Pro-

Continued

on

page

58

58

The Commercial and Financial Chronicle

(2810)

State Life Insurance Co. of Colorado

Third

1962
filed
300,000
common.
Price—By
amendment (max. $5). Business—Writing of life, health
and accident insurance.
Proceeds—For investment and

March

27,

ness—A

—For investment.

writer—None.
•

Statewide

Vending Corp.

•

through vending machines. Proceeds—For

registration

debt repay¬

Corp.

(7/2-6)

Ten-Tex

Jan.

•

(6/18-22)

product line. Office—744 Berriman St.,
Underwriter—Lloyd Securities, Inc.

(M.)

Stephens Mfg.

1962 ("Reg. A") 75,000 capital shares.

Price—

tanks

•

ances.

Sterno

(7/2-6)
Feb. 21, 1962 filed 115,000 class A, of which 40,000 are
to be offered by the company and 75,000 by stockhold¬
ers. Price—$6. Business—Manufacture, sale and distribu¬
tion of fish foods and distribution of various types of fish
and aquarium supplies for hobbyists.
Proceeds—For a
new plant and working capital. Office—52 Cottage Plaza,
Allendale, N. J. Underwriter — Andresen & Co., N. Y.
Industries, Inc.

Stratford
March

ment

and

•

Y. Underwriter—

Busi¬

ness—Development, design and manufacture of gears
and gear assemblies, precision instruments and appli¬
ances.
Proceeds—For equipment, working capital and
research and development. Office—5960 Main St., North¬
east, Minneapolis. Underwriter—Irving J. Rice & Co.,
Inc., St. Paul." ~
•

Co.,

N. Y.

Offering—Expected in

;

.August.
^Superior
Feb.

28,

Bakers,

1962

Inc.

(6-25-29)

filed

325,000 common, of which 294,000
by the company and 31,000 shares by a
stockholder. Price—$3. Business—Manufacture and sale
of baked goods. Proceeds—For debt
repayment and gen¬
eral corporate purposes. Address—New York & Drexel
Aves., Atlantic City, N. J. Underwriter—Balogh & Co.,

,

are

to be offered

Washington, D. C.
Szemco, Inc.
29, 1961 filed 66,666 common. Price—By amend¬
ment ($1.50 max.). Business—Design and manufacture
•of ordnance, automotive,
aircraft and guided missile
parts and components. Proceeds—For selling stockhold¬
Dec.

ers.

Office—4417 Okechobe Rd.,

West Palm Beach, Fla.

Underwriter—None.
Tabach

(6/25-29)

1962 ("Reg. A") 50,000 common. Price — $6.
Business—Manufacture and sale of women's wear. Pro¬
ceeds—For debt repayment, leasehold

improvements and

expansion. Office—217 E.

Eight St., Los Angeles, Calif.
Costello, Russotto & Co., 9301 Wilshire
Blvd., Beverly Hills, Calif.
Underwriter

•

—

Tactair Fluid

Controls, Corp.

(7/2-6)

March 29, 1962 filed 90,000 common.
Price—By amend¬
ment (max. $7.50). Business—Manufacture of fluid con¬
trol

equipment used in missiles, helicopters and aircraft.
selling stockholders
Address—Bridge¬
port, Conn. Underwriters—Stroud & Co., Inc.; and Penlngton, Colket & Co., Philadelphia.

Proceeds—For

Taylor Publishing Co.
21, 1961 filed .152,000

Dec.

ment.

Business

common.

Price—By amend¬

Production and distribution of school
year-books and commercial printing. Proceeds—For sell¬
—

ing stockholders. Office—6320 Denton Dr., Dallas. Un¬
derwriters—Merrill Lynch, Pierce, Fenner & Smith
Inc.,
Dallas Rupe & Son, Inc.,
Dallas, Tex. Offer¬

N. Y., and

ing—Indefinitely postponed.
• Teaching Systems, Inc.
June 1, 1962 ("Reg.
A") 50,000
ness—Production

teaching aids.

and

sale

of

v

•

-

common.

Price—$2. Busi¬

educational

audio-visual

M.

Dain

&

Co., Inc., Minneapolis.

'

—

Reuben Rose & Co., Inc., N. Y.
Tull

May

(J. M.)

17, 1962

Metal & Supply Co., Inc.

("Reg.

A")

Business—Wholesale
ferrous

metals

and

25,000

distribution
-industrial

Price—$12.

-common.

of

ferrous

supplies.

and

non-

Proceeds^For

working capital.; Office—285

Marietta St., N. W./"At¬
Underwriters—Wyatt, Neal /.& •' Waggoner, ahd
Robinson-Humphrey Co., Inc.*-1 Atlanta* •
' -#v«

lanta.

•

Turbodyne Corp.
March 2, 1962 filed 127,500 common."
Price—$5. Business

—Research, development and-production

and overhaul¬

ing of- gas turbine engines. Proceeds—For debt repay¬
ment, research and development, a new plant and work¬
ing capital. Office — 1346 Connecticut Avenuef N. W.;
Washington, D. C. Underwriter—Sandkuhl & Co., Inc.,
N. Y.
V,
V ■
'
•

Turner

(J.

L.)

&

Son,

Inc.

Mar. 27, 1962 filed 120,000 common, of which 60,000 are
to be offered by company and
60,000 by a stockholder.

•

*

Price—By
retail

amendment

(max.

$15)

Business—Sale

of

merchandise; Proceeds

—
For general corporate
Office—East Main St.,- Scottsville, Ky: Under¬

purposes.

¬

writer—Bear; Stearns & Co.y N. Y. Offering-^Expected
in July.
'
V
/
•
;

.

.

.

•

Office—2220

withdrawn..

Florida

Ave., Jasper, Ala.

First Southwest

Underwriter—

Philips, Rosen, Appel and Walden, N. Y.

Co., Dallas. Note—This registration

•

-

Tork

Time Controls, Inc.
12, 1961 filed 150,000 common. Price—By amend¬
ment. Business—Design and manufacture of time con¬

+

of

electronic

v

"

^

Price—$10.

flash

systems

for

photography, etc. Proceeds—For equipment,, sales pro¬
motion, research and development, and other corporate
purposes.
Office—120 Liberty St., N. Y. Underwriter—

trolled switches. Proceeds—For debt

repayment, expan¬
sion, and working capital. Office—1 Grove St., Mount
Vernon, N. Y. Underwriters—Godfrey. Hamilton. Taylor
& Co., and Magnus &
Co., N. Y. Offering—Postponed.

International, Inc.

12,

Inc.
'
'
!
1
;
~
1962 filed 40,000 class A shares.

Business—Production

Dec.

was

«■'.

• Unilux,
June

None.-.-,.

«•;

7

•

.

■

.///

•

'•

.*" V

;

Unison Electronics Corp. (6/18-22) ./*••
March 30, 1962 ("Reg. A") 100,000 common. Price—$1.50.

(6/25-29) y
:
^Business ;— Manufacture tef 2 high-precision instrument
550,000 capital shares. Price — By
components for aircraft and missile guidance systems.
Company builds and operates
Proceeds—For debt repayment, equipment, and working
retail discount department stores. Proceeds—For
expan¬
capital. Office — 1634 Marion St.; Grand Haven, Mich.
sion. Office—41 E. 42nd St., N. Y. Underwriter—W. C,
Underwriter—Gateway Stock & Bond, Inc., Pittsburgh.
Langley & Co., N. Y.
;
? United Camera
Exchange, Inc.
>
.//
*
Traid Corp.
Jan. 29, 1962 filed 105,000 common. Price-—$3. Business
Feb. 12, 1962 filed 150,000 common.
Price—By amend¬
—Operation of retail camera stores. Proceeds—For ex¬
ment (max. $9).
Business—Design and sale of special
pansion and general corporate purposes. Office—25 W.
cameras for scientific
photography. Proceeds—For gen-.
43rd St.. N. Y. Underwriter—M. G. Davis &
Co., Inc.,
eral corporate purposes.
Office—17136 Ventura Blvd.,
N. Y. Offering—Expected sometime in July, v 7
:
Encino, Calif. Underwriter—J. A. Hogle & Co., Salt
United Markets Inc. (7/23-27) >
Lake City.
Offering—Indefinitely postponed.
March 15, 1962 filed *100,000 common. Price—$5. Busi¬
Trans-Alaska Telephone Co. (6/25-29)" "
ness—Operation of "Foodtown" supermarkets. Proceeds
Nov. 29, 1961 filed 265,000
/—For general corporate purposes. Office—531 Ferry
common, of which 250,000 are
St.,
to be offered by the
Newark, N. J. Underwriter—Moran & Co^ Newark, NJ J,
company and 15,000 by a stock¬
holder. Price—$6. Proceeds—For
United National Insurance Co.
~ :
construction, and ac¬
quisition, repayment of debt, and other corporate pur¬
May 29, 1962 filed 77,000 common. Pr^ce—$15. Business
poses.
Office — 110 E. 6th Ave., Anchorage, Alaska.
—Sale of automobile insurance, and the writing of fire
Underwriter—Milton D. Blauner & Co., Inc., N. Y.
and extended
coverage/insurance. \Proceeds—For ex¬
pansion. Office—225 S. 15th St., Philadelphia. /Under¬
Trans-Western Service Industries ■
Feb., 1,

.

1962 filed

amendment.

Business

—

•

,

-

*

writer—Suplee, Yeatman, Mosley CoM Inc.: Philadelphia.

April 2, 1962 filed 100,000 common, of which 20,000 are
be offered by
company and 80,000 by stockholders.
Price—By amendment (max. $10). Business—Operation
of dry cleaning and
laundry plants. Proceeds—For debt
to

Proceeds—For equipment, promotion and




Corp.

-

Tyler Pipe & Foundry Co.
Jan. 25, 1962 filed 120,000 common. Price—By amend¬
ment; Business—Design, development and manufacture
of cast iron products; Proceeds^—For selling
stockhold¬
ers.
Office—Lindale Rd., Swan. Texas. Underwriter*—'

Towers Marts

Industries, Inc.

March 29,

Hotel

v

-

Top Dollar Stores, Inc.
May 1, 1962 filed 200,000 common, of which 100,000 are¬
te be offered by company and
100,000 by stockholders.
Price—$5. Business—Operation of a chain of self-serv¬
ice retail stores selling
clothing, housewares, etc. Pro¬
ceeds—For expansion, equipment and working capital.

•

'

electronic
plumbing and heating
electric water

Sepulveda Blvd., El Segundo, CaliL Underwriter—View
ers, MacPherson & Warwick, Inc., N. Y. Offering—Tem¬
porarily postponed..

Office—3601 N. W. 50th St., Miami, Fla. Un¬
&

International

Inc.

Tujax Industries, Inc. (6/25-29) '
'
<
Mar. 23, 1962 filed 150,000 class A
shares, of which 100,000 are to be offered
by company and 50,000 by stock¬
holders. Price—$8. * Business—Through its subsidiaries
the company is engaged in the wholesale
distribution
of electrical supplies andequipment. Proceeds
For
debt repayment and working
capital. Office—514 E. 73rd
St., N. Y. Underwriters—Richard Bruce & Co.: Inc., and

compact

2, 1962 filed 175,000 common. Price—By amendment ($10 max.). Business—Hotel ownership and man¬
agement. Proceeds — For construction. Office.— 525 N.

City Dairy Products, Inc.
27, 1961 filed 110,000 common. Price—$4. Business

purposes.

in

of

Jan.

—Distribution of eggs and dairy products in Florida and
other southeastern states. Proceeds—General corporate

derwriter—Finkle

Underwriter—J.

Thom-Tex

Thunderbird

Sun

Oct.

used

manufacture

Research

Office—7620 Lyndale Ave. * S., * Minneapolis.

purposes.^

Un¬

Thompson Manufacturing Co., Inc. (6/25-29)
Dec. 22, 1961 filed 90,000 common, of which 80,000 shares
are to be offered by the
company and 10,000 by stock¬
holders.
Price—$4. Business—Design and manufacture,
of special machinery for the paper industry and the
construction of bowling alleys. Proceeds—For expansion
and general corporate purposes. Office—Canal St., Lan¬
caster, N. H. Underwriter—Packer-Wilbur Co., Inc., N. Y.

Gear

Price—$3.50.

Tronchemics

Business—Development of

devices

the

•

May 10, 1962 filed 400,000 common; Priee—$lr Business
—Research and development and manufacture of
prod¬
ucts in the fields Of data
processing, process control and
chemical and food processing.
Proceeds—For research
and. development, working capital and other
corporate

Paper Converting Corp.
March 15, 1962 filed 70,000 common. Price—$4. Business
—Manufacture of writing paper items. Proceeds—For
debt repayment and working capital/ Address—Highway
3, Rio Grande, Puerto Rico. Underwriter—Meade & Co.,
N. Y. Offering—Temporarily postponed. *• "

Realty & Construction Fund, Inc.

Co., Inc.
May 29, 1962 filed 167,000 common.

and

Co.-

coatings, sealants, mastics, paints, etc. Proceeds — For
selling stockholders. Office—10701 Shaker Blvd., Cleve¬
land. Underwriter—McDonald &
Co.,'Cleveland. Offer¬
ing—Temporarily postponed, •

heating units. Proceeds—For equipment, working capi¬
tal and other corporate purposes. Office — 492 GrandBlvd., Westbury, N. Y. Underwriter—J. B. Coburn Asso¬
ciates, Inc., N. Y.

March 20, 1962 filed 500,000 common. Price—$20. Busi¬
ness—A real estate investment company. Proceeds—For

Summit

14th St., Des Moines.

Manufacturing

iTeb. 26, 1962 filed 150,000 class A common. Price —
By
amendment (max. $15).-Business—^Producer of
protective

Allyn & Co., Chicago.

(max. $10).
electrical

fields

1962 filed 315,000 class A shares of which
to be offered by the company and 97,000 by
the stockholders.
Price—$6. Business—Commercial fi¬
nance company.
Proceeds—For debt repayment. Office
—95 Madison Ave.,
N. Y. Underwriter—Mortimer B.
Burnside & Co., Inc., N. Y.
lor*- :

-

C.

*

Tremco

•

Thermotronics Corp., Inc.

Financial Corp.

investment. Office—50 E. 40th St., N.
To be named.

Proceeds—For -advertising,
equipment
and
capital.
Office—2079 Wantaugh Ave., Wantaugh, N. Y. Underwriter^-rWeisel, Kleinman & Co., Inc.,
Garden City, N. Y.
/■■•. /
•
>y
/

March 30, 1962 filed 100,000 common. Price—By amend-'

are

Stratton

Office—4509 E.

withdrawn.

was

working

accessories; and gas fueled household appli-v
acquisitions, debt repayment and

derwriter—A.

registration

specialized method for transporting the aged and handi¬
capped.

of

Proceeds—For

equipment.

29,

218,000

and

image

and

„

Thermogas Co.
May 25, 1962 filed 800,000 common. Price—By amend¬
ment
(max. $15).
Business—Distribution of LP gas,

St., Los Angeles. Underwriters — Thomas Jay,
Co., Inc., Beverly Hills, Calif., and I. J. Schein
Co., N. Y.
29th

Winston &

the 'data

Transportation for the Handicapped, Inc. :
■"»
May 2, 1962 filed 80,000 common. Price—$2. Business—
Company plans to sell franchises for:"Mobile Care,"*a

Capital, Inc.
Oct. 16, 1961 filed 275,000 common; Price—By amend¬
ment (max. $20). Business—A small business investment
company. Proceeds—General corporate purposes. Office
—1947 W. Gray Ave., Houston. Underwriters — F. S.
Smithers & Co., N. Y., and Moroney, Beissner & Co.,
Inc., Houston. Note—This company formerly was named
Texas Electro-Dynamics Capital, Inc. ..;/*/•:1"/ ly

Brooklyn,

in

Johnson-Ave., El Cajon, Calif. Underwriter—To be

named. Note—This

Texas Technical

$4. Business—Manufacture and distribution of electrical
fittings and connectors. Proceeds—For debt repayment,
inventory, equipment and working capital. Office—814
E.

N.

Price—$5. Business

common.

development

and transmission field. Proceeds—For debt
and other corporate purposes. Office—1000

repayment

Proceeds—For expan¬

August.

and

processing

Corp.

Paul. Offering—Expected in

(6/18-22)

Inc.

Co.,

—Research

120,000 common. Price—$2.30.
a
machine for production of
tufted textile products. Proceeds—For debt repayment
and working capital. Office—4813 Tennessee Ave., Chat¬
tanooga. Underwriter—Irving J. Rice & Co., Inc., St.

1962 filed 200,000 common. Price—$3. Business
bicycles, tricycles and toy automobiles.
Proceeds—For debt repayment, moving expenses and a

March 28,

circuits.

•

Transdata, Inc.
Nov. 29, 1961 filed 100,000

31, 1962 ("Reg. A")

Business—Manufacture

5,

new

electronic

equipment, exploration and working cap¬
E. 4th St., Casa Grande, Ariz. Under¬

•

,

—Manufacture of

N. Y.

Y. Under¬

Corp.

with

Resources, Inc.

Office—201

writer—None.

St., Orange N. J. Underwriter — Magnus & Co., N. Y.
Note—This registration was withdrawn;
' o ;
/«•

2, 1961

Stelber Cycle

Tellite

nection

ceeds—For

Jan.

ital.

sion, research and development, acquisition a technical'
library, and working capital. Office—200 S. Jefferson

("Reg. A") 69,660 common. Price—$3. Pro¬
equipment and working capital. Address—
Norristown, Pa. Underwriter—Joseph W. Hurley & Co.,
Norristown, Pa.
Oct.

Office—235 E. 42nd St., N.

Proceeds—For

Busi¬

Proceeds

29, 1962 filed 125,000 common. Price—$3/ Business
—Manufacture of "Tellite," a new material used in con¬

withdrawn.

was

Plant Equipment Corp.

Steel

Price—$10.

company.

Jan.

ment, leasehold improvements, expansion and working
capital. Office—354 Hempstead Ave., West Hempstead,
N. Y. Underwriter—M. H. Myerson & Co., Inc., N. Y.
•

investment

writer—Straus, Blosser & McDowell, Chicago.

March 23, 1962 filed 88,250 common. Price—$4.25.—Busi¬
ness—Sale of cigarettes, coffee, beverages, candy etc.,

Note—This

business

small

Thursday, June 14,, 1962

1962 filed 500,000 capital shares. Price—$1.50.
Business—Exploration, development and production pi
the Lake Shore copper deposit near Casa Grande, Ariz.

Corp.

April 30, 1962 filed 500,000 common.

.

.

May 28,

Ave., N. Y.

Technical Capital

Under¬

working capital. Office—1760 High St., Denver.

and

N. Y.

way,

Transarizona

working capital.
Office—1650 Broad¬
Underwriter—Creative Ventures Corp., 733

advertising

Continued from page 57

.

repayment. Office—1167-65th St., Oakland, Calif. Under¬
writer— Granbery, Marache &
Co., N. Y....

.

United-Overcon Corp*

(6/25-29)

Mar. 26, 1962 filed 450,000 common, of which
90,897 are
to be offered
by the company and 359,103 by stock¬

holders.
-

-

Price—By amendment (max. $18). Business—
Operates hard goods' departments in discount depart-

Volume

Number 6168

195

.

.

*

The Commercial and Financial Chronicle

ment stores.

•

Needham

(2811)

Jan.

Proceeds—For debt repayment. Office—19
St., Nugent Highlands, Mass. Underwriters—
McDonnell & Co;, Inc., and Oppenheimer & Co., N. Y.
-United Packaging Co.,

Inc.

Vendex, Inc. (6/25-29)!
12„ 1962' ("Reg. a > .500,000 common. Price — $1.
Business—Manufacture of coin operated vending ma¬
chines.

(6/25-29)

promotion and advertising services to mothers

side, N. Y. Underwriters—Globus, Inc.* and First Philadelphia Corp., N. Y.
*7

Proceeds—For

an
acquisition, and general cor¬
Office—1290 Bayshore Blvd., BurlinUnderwriter—Pacific Coast Securities Co.,

Nov. 29, 1961 filed 102,000 common. Price—$3. Business

porate purposes.

—A

game, Calif.
San Francisco.

general

business. Proceeds

packaging

For

—

new

machinery.,, debt repayment and working capital. Office
—4611
Wayne Ave., Philadelphia. Underwriter—God¬

Vending Components, Inc. *
30, 1962 filed 100,000 common. Price—$4. Busi¬
ness— Manufacture, design
and- sale of metal valves,
mixers, taps, etc., for vending machines. Proceeds—For
expansion, new products and other corporate, purposes.
,

'

frey, Hamilton, Taylor & Co.* Inc., N. Y.

;■

March

,

•U. S. Electronic Publications, Inc.
Sept. 26, 1961 :("Heg. A"7 100,000. common. . Price—$3.
Business—Publishing of military and industrial hand¬

'

Office—204

books. Proceeds-—Debt repayment, expansion and work-

,

Railroad Ave.,. Hackensack,

writer—Keene &

ing capital.' Office—480 Lexington Ave., N. Y. Under¬
writer—Douglas Enterprises, 8856 18th Ave., Brooklyn.4

N. J.

,,

,

.

.

-

—

'

(

and

...

installation

of

new

Proceeds

—

For the

purchase

facture and sale of classroom

moulds, machinery and equip¬
Office—

ment, research and general corporate purposes.
250 Goffle

Road, Hawthorne, N. J. Underwriter—Edward

Lewis
was

•

& Co., Inc., N. Y. Note—This
named Aero-Dynamics Corp.,!;.

;

formerly
!,

furniture, folding banquet
tables and chairs.. Proceeds—For general corporate pur¬
poses.
Office—15134 So. Vermont Ave., Los Ang^s.
Underwriter—Crowell, Weedon & Co., Los Angeles.

company

Virginia^ Electric & Power Co.
May 4, 1962 filed 650,000
struction.

Universal Telephone,

Inc. (6/20)
March 29, 1962 filed 120,000 common. .Price — $5,625,
Business—Operation of telephone facilities in N. Mex.,
Ill,, and Wis. Proceeds—For expansion and working cap¬
ital. Office—2517 E. Norwich St., .Milwaukee. v Under¬
writer—Marshall Co., Milwaukee.

v

common.

Proceeds—For

con¬

Office—Richmond

(Competitive).
Fenner

9; * Va.
Underwriters—
Probable bidders: Merrill Lynch, Pierce,

Smith

&

Inc.; Stone & Webster Securities Co.;
Kuhn, Loeb & Co.-Ladenburg, Thalmann & Co.-Allen &
Co. (jointly). Offering—Temporarily postponed.

*

*

•

Voron Electronics Corp.

"

Urban

July 28* 1961 filed

Redevelopment Corp.;'
1962 filed 100,000 common.

March 29,

■

Price—By amend¬
ment.
Business—Company operates the "Kellogg Plan"
which provides 100% financing and construction through
a single source for renewing older residential properties.
Proceeds—ForC debt
repayment,
sales
financing
and
working capital. Office — 1959 S. LaCienega Blvd., Los
Angeles. Underwriter—Holton, Henderson, & Co., Los
Angeles.

$5.05

Texas, Inc.

unit.

per

-

Business—Manufacture of urethane
equipment,
working
capital,

First Nebraska Securities

28,

music. Proceeds—For

Wenger ServiceMASTER Co.
1961

filed

140,000

*

Corp., Lincoln, Neb.

capital

(6/18-22)

shares.

Wallace

Investments, Inc.
12; 1962 filed 400,000 common. Price—By amend¬
ment (max. $22). Business—Company makes short-term
real estate loans, acquires, develops and sells land, and
engages in the mortgage loan correspondent business.

Utah Concrete Pipe Co.

Feb.

Feb. 8,

1962 filed 110,000 common. Price — By amend¬
(max. $10). Business — Manufacture and sale of
pipe, masonry products, corrugated metal pipe,
telephone conduit and miscellaneous concrete products.
Proceeds—For debt repayment and working capital. Of-;
fice—379 i7th St., Ogden,. Utah. Underwriter—Srhwabacher & Co., San Francisco. Offering — Indefinitely
postponed.
ment

concrete

-

Proceeds—For
ford

selling stockholders.

Bldg.,^Dallas.

Office—1111 Hart¬
Underwriter—Harriman Ripley &

Co., N. Y. Note—This registration is being withdrawn. ~
Walston

Aviation, Inc.

(7/2)

Oct. 30, 1961 filed 90,000 common, of which
be offered by the company and 30,000 by a

Corp.
Sept. 18,1961, ("Reg. A") 33,097. common. Price — $5.
Business
Operation of a discount department store..
Office—3629 N. Teutonia Ave;, Milwaukee, Wis; Under-,
writer
Continental Securities Corp., Milwaukee, Wis.

60,000 are to
stockholder.
Price—$6.25. Business—Sells Cessna Airplanes and sup¬
plies; also repairs ..and services various type airplanes.
Proceeds
For expansion and general corporate purposes.
Office—Civic Memorial Airport, E. Alton, 111.

Offering—Temporarily, postponed.

Underwriter—White

U-Tell

—

—

>

-

•

Valu-Rack, Inc. (7/16-20)
May 4, 1962 filed 200,000 common, of which 100,000
to-be. offered- by

Price

are

100,000 by stockholders.
Wholesale distribution and retail

$5. Business —
merchandising of health, and
—

beauty. aids, housewares,
kitchenwares, wearing apparel and other goods.
Pro¬
ceeds—For debt

repayment.

St., Los Angeles.

Office—2925

S. San

Pedro

Underwriter—Garat & Polonitza, Inc.

156,76.2 common. Price.— By amend?
Business—Manufacture of - steam, generators for

diesel locomotives: temperature control systems for rail
cars, buses and aircraft; and door control devices for
.

rail passenger

Office—80.
William

E-„

Blair

postponed.

Proceeds—For selling stockholders.
Jackson
Blvd.., ChiVagn
Underwritpiv—

cars.

&
-

:

Co., Chicago. Offering —Indefinitely
1




.

-

J

& Co.. Inc., St. Louis.

Steamship Corp.
Aug. 29, 1961 filed 1,743,000 common. Price—By amend-,
ment.
Business —The carrying of liner-type cargoes.
Proceeds—For the purchase of vessels, and working cap¬
ital. Office—71 Saint Joseph St., Mobile, Ala. Under¬
writer—Shields & Co., Inc., N. Y. (mgr.). Offering—
Temporarily postponed.
Wavelabs

May 21, 1962

Vapor Corp.
Feb. 2, 1962 filed
ment.

•

—

Waterman

and

company

sheets

Business

—

Inc.

("Reg. A") 220,000

common.

Equipment, inventories and working capital. Address—
P. O. Box 329,Panel
Way, Longview, Wash. Underwriter

—Ferman & Co.,

West Falls

monitoring devices. Proceeds—For equipment,
advertising, marketing and working capital. Office—4343
Twain St., San Diego. Underwriters—Hannaford & Tal¬
bot, San Francisco and S. C. Burns & Co., Inc., N. Y.
Welcome

Miami, Fla.

Shopping Center Limited Partnership

Nov. 14, 1961 filed $444,000 of limited
partnership inter-ests to be offered in 444 units.

-

Price—$1,000. Business-^"

Development of

a

shopping

Proceeds—For general
K

&

center

corporate

at

Falls

purposes.

Church* Va.
Office—1411 V-

St., N. W., Washington, D. C. Underwriter—HodgdonCo., Inc., Washington, D. C.
Western

Lithographers, Inc.
30, 1962 ("Reg. A") 120,000 common. Price—
$2.50. Business—General printing- and
lithography: Pro¬
ceeds—For equipment, debt
repayment, and inventory.
.

March

Office—3407 N. El Paso, Colorado
Springs, Colo. Under¬

writer—Copley & Co., Colorado Springs, Colo.
Western Pioneer Co.
Feb. 19, 1962 filed 371,750 capital shares of which
175,000
are to be offered
by the company and 196,750

r

by stock¬

holders.

Price—By amendment

(max.

$42).

Business—

The

making of loans secured by first liens on real estate.
Proceeds—For debt repayment. Office — 3243 Wilshire

Blvd., Los Angeles. Underwriter — Kidder,
Peabody &
Co., N. Y. Offering—Expected in July.

• Western Power & Gas
June

12,

1962

filed

Co.

(7/17)

150,000

cumulative preferred (no
par). Price—By amendment (max. $50). Proceeds—For
prepayment of bank loans, redemption of 4J/4% deben¬
tures due 1970„ construction and other
corporate pur¬
poses. Office—144 S. 12th St., Lincoln, Neb. Underwriter

—Paine, Webber, Jackson & Curtis, N. Y.
Western States Real Investment Trust
Nov.

13, 1961 filed 32,000 shares of beneficial Interest.
Price—$6.25.
Business—A small
business
investment
Proceeds—For investment.

company.

Ursula

St., Aurora,
Aurora, Colo.

Colo.

Office—403

Underwriter—Westco

Corp.,
.

Whirlpool Corp.
April 25, 1962 filed 1,000,000 common. Price—By amend¬
ment (max. $30,125). Business—Manufacture and sale of
home

appliances.r Proceeds — For selling stockholder
(Radio Corp. of America). Address — Benton Harbor,

Mich. Underwriter—Lehman

offering
•

was

White

Brothers, N. Y. Note—This
indefinitely postponed.

Lighting Co.

(6/18-22)

Feb.

26, 1962 ("Reg. A") 75,000 common. Price — $4.
Business—Manufacture and distribution of electrical and
lighting fixtures. Proceeds—For debt repayment, equip¬
ment and working capital. Office—5221
W. Jefferson
Blvd., Los Angeles. Underwriter—Costello. Russotto &
Co., 9301 Wilshire Blvd., Beverly Hills, Calif.
•

Widman

(L. F.), Inc.
27, 1961 filed 162,000 common, of which 102,000 are
offered by the company and 60,000 by stock¬
holders. Price—$3. Business—Operates a chain of retail
drug stores. Proceeds—Expansion, equipment and work¬
ing capital. Office—738 Bellefonte Ave.; Lock Haven, Pa.
Underwriter—Godfrey, Hamilton, Taylor & Co., N. Y.
Offering—Temporarily postponed.
Oct.

to

be

Wiegand

(Edwin L.)

Co.

March 30, 1962 filed 606,450 common. Price—By amend¬
ment. Business—Manufacture of electrical heating ele¬
ments for

industrial, commercial and household applica¬
Office—7500
Blvd., Pittsburgh. Underwriters—Eastman Dil¬
lon, Union Securities & Co., N. Y., Moore, Leonard &
Lynch, Pittsburgh and Reinholdt & Gardner, St. Louis.
Offering—Temporarily postponed.

tions.; Proceeds—For selling stockholders.

Thomas

Wiener Shoes Inc.

April 2, 1962 filed 80,000 common. Price
ment (max. $11). Business—Operation of

By amend¬
chain of shoe
stores. Proceeds—For debt repayment, expansion and
working capital. Office — 808 Dakin St., New Orleans.
Underwriter
Howard, Weil, Labouisse, Friedrichs &
Co., New Orleans.
—

a

Baby, Inc. (6/18-22)
28, 1961 filed 75.000 common. Price—$2. Business
—Company renders direct mail public relations, sales

•

—

•

Wiggins Plastics, Inc. (6/29)
20, 1961 ("Reg. A") 100,000 common. Price—$3.
compression, transfer and injection
molding of plastic materials.
Proceeds—For debt re¬
payment and general corporate purposes. > Office—180
Kingsland Rd., Clifton, N. J. Underwriters—Investment
Planning Group, Inc., East Orange, N. J., and Triangle
Investors Corp., N. Y.
Oct.

Business—Custom

Willpat Productions, Inc.
1962 ("Reg. A") 161000 common. Price—$1.25T
Business—Production
of
full-length motion pictures.

May 9,

Proceeds—For

new

films, debt repayment and working

Office—1025 Connecticut Ave., N. W., Wash¬
ington, D. C.
Underwriter—Bevan & Co., Inc., Wash¬
ington, D. C.
>

capital.

Price—$1.25.

Manufacture of airborne and shipboard vi¬

bration

Dec.

common. Price—By
amer\d-'
(max. $9). Business^—Company processes^
plywood
into factory finished wall
panelling. Proceeds-

Price—By

cleaning and moth-proofing of rugs, furniture, etc. Com¬
pany also manufactures and sells cleaning equipment
and supplies to franchise holders. Proceeds—For debt
repayment, new building and equipment and other cor¬
porate purposes. Office — 2117-29 N. Wayne, Chicago.
Underwriter—Laren Co., N. Y.

Offering—Temporarily postponed.

*

Paner Co.

March 30* 1962 filed 135,000
ment

amendment. Business—Sale of franchises for on-location

Proceeds—For

—

of background

Wade

Dec.

leasehold expenses and other corporate purposes. Office
—2300 Republic National Bank Bldg., Dallas.
Under¬
writer

$3.

tooling, pro¬
duction, engineering, inventory and sales promotion of
its products and for working capital.
Office — 1230 E.
Mermaid Lane, Wyndmoor, Pa. Underwriters — John
Joshua & Co., Inc., and Reuben, Rose & Co., Inc., N. Y.

Feb. 14, 1962 filed 250,000 class A and 250,000 common to
be offered in units of one share of each class. Price—
foams.

—

the sale, installation and servicing of industrial and
commercial communications equipment and the furnish¬

•

Urethane of

100,000 class A shares. Price

Business—The manufacture of electronic test equipment,

ing

behalf

(6/25-29)

Verlan

*

mosaic tiles.

Welsh

Under¬

Publications* Inc.
1962 filed 89,500 common, of which 80,000>
United States ReaSty- IL Investment Co.
v
are
to; be offered by company and 9,500 by a stockMarch 30, 1962 filed. 150,000' capital shares.. Priced—By
\ holder. Price — By amendment (max. $5.50). Busi¬
amendment (max. $8).- Business — General real estate.
ness
Preparation and production of books, catalogues
Proceeds—JFor working Capital. Office-^-972 Broad St.,'
vand other printed material. 4
A subsidiary publishes
Newark, N. J. Underwriter—H. Hentz & Co., N. Y. Offer¬
photography books. Proceeds—For expansion, debt re¬
ing—Expected sometime in July. \..r<
\
J
payment and other corporate purposes. Office — 915
U. S. Scientific Corp.
'
r Broadway, N. Y; Underwriter—Searight, Ahalt & O'ConM&r. 22, 1962 filed 85,000 common. Price—$4. Business
nor,' Inc., N. Y.
•
•
''
"
'
—Company plans to merchandise and distribute a line of
Victor Electronics, Inc.
consumer
products, including -an air vent cigarette
Jan. 23, 1962 filed 150,000 common. Price—$5. Business
holder; a: transistor ignition:unit for automobile spark
—Manufacture, lease and sale of an amusement device
plugs, and a small plastic capsule containing a chemical,
; known as Golf it. Proceeds — For debt repayment and
to increase efficiency of spark plugs;. Proceeds — For
>■
general corporate purposes.? Office—1 Bale Ave., Bala**
equipment, inventory, advertising and sale^ promotion, '
Cynwyd, Pa. Underwriter—D. L. Greenbaum Co., Phila¬
research, and working capital. Office—220 E. 23rd St.
delphia. Offering—In late July.
N.;Y; Underwriter—Edward Lewis Co*, Inc:, N*. Y. Of¬
Video Color Corp.
fering—Expected in August. ;
'" :
:
x April
6, 1962 filed 1,000,000 common. Price—$1.15. Busi• United
Telephone Services, Inc.:
ness—Development, manufacture and distribution of picMarch 30,1962 filed 150,000 "class A common. Price—By
i ture tubes. Proceeds—For equipment, inventories and
amendment
(max. $5). Business—A telephone holding
working capital. Office—729 Centinela Blvd., Inglewood,
company. Proceeds—For debt repayment, equipment and
Calif. Underwriter—Naftalin & Co., Inc., Minneapolis.
working capital. Office—-645 First Ave.. N. Y. Under-o
Video Engineering Co., Inc.
writer—J. R. Williston & Beane, N. Y.: Offering—Post¬
Mar. 26, 1962 filed 125,000 class A common. Price—$4.
poned. •
•'• ■ • Business
Company designs, fabricates, installs and
-United Variable Annuities Fund, Inc.1
/services closed circuit television systems. Proceeds—For
April 11, 1961 filed 2,500,000 shares of stock. Price—$10
debt repayment, advertising, equipment and expansion.
per share. Business—A new mutual fund. Proceeds—For
Office—Riggs Rd. and First Place, N. E., Washington,
investment. <Office—20 W: 9th Street, Kansas City, Mo.
; D. C. Underwriter—Mitchell, Carroll & Co.. Inc.. WashUnderwriter—Waddell & Reed, Inc., Kansas City, Mo.:ington, D. C;
/
Offering—Expected in August.
"
^ ■
/
Virco Mfg. Corp.
Universal industries, Inc. (6/25) '
-/
/ April 20> 1962 filed 250,000 common, of which 50,000 are
to be offered by company and 200,000 by stockholders.
Aug. 7, 1961 filed d00,000 common shares. Price—$5
Business
The importation and distribution of Italian
Price—By amendment (max. $5.75). Business—Manu¬
—

on

of retail stores. Proceeds—For debt
repayment and gen¬
eral corporate purposes. Office—210-07
48th Ave., Bay-

Co., Inc.; N. Y.,

March 30,

-■

marble- and

59

Winslow Electronics,

Inc.

28, 1961 filed 125,000 common. Price—$4. Business
—Design and manufacture of precision electrical and
electronic measuring devices and test equipment. Pro¬
ceeds—For debt repayment and other corporate pur¬
Dec.

poses.

Office—1005 First Ave;, Asbury Park, N. J. Under¬
Inc., N. Y.

writer—Amos Treat & Co.,
,

"

'

*

Continued

on page

60

60

The Commercial and Financial Chronicle

(2812)

Continued from page 59
v

sell $25,000,000 of 30-year first mortgage bonds. Office—
139 East Fourth St., Cincinnati. Underwriters—(Com¬

:,V

wolf

corp.i,r
-;r:4
Jan. 26, 1962 filed $4,500,000 of 6.5% convertible sub¬
ordinated debentures due 1977 (with attached warrants)
offered

to

be

A

stock

the

on

class

A

Real

for

estate.

subscription by stockholders

basis

of

held.

shares

$500

debentures for

of class
each 100

per unit. Business—
repayment and realty
acquisitions. Office—10 E. 40th St., N. Y. Underwriter
—S. E. Securities, Inc., 10 East 40th St:, New York.:/ ,. •

Price—$500

Proceeds—For

Wolverine

Aluminum

debt

Co.

Corp.

Meeting—June 18

(11 a.m. EDST)

(47th floor), One Wall St., N. Y.

the Fall. Proceeds

41st

Corp.

26, 1962 filed 130,000 common. Price—By amend¬
(max. $27). Business — Manufacture and sale of
work clothing. Company is also engaged in industrial
laundering and garment rental. Proceeds—For debt re¬
payment, acquisitions and working capital. Office —
1768 E. 25th St., Cleveland. Underwriter—Hornblower

Power

Co.

Corp.-

Boston

v ;

:

<

:

expects to
$25,000,000 of debt securities in late 1962 or early
Office—500 South 27th St., Decatur, 111. Underwriters—To be named. The last sale of bonds on May 21,
v 1958 was made
through First Boston Corp: Other bidders
; were:
Halsey, Stuart & Co. Inc.; White, Weld & Co.Merrill Lynch, Pierce, Fenner & Smith, Inc..(jointly);
/Eastman Dillon, Union Securities & Co.; Harriman Rip¬
ley & Co., Inc.-Glore, Forgan & Co;; (jointly>•'; \

^

;

„

.

,

—

For construction.

Office

—

120* E.

St., New York

Dec.

it

1961

11,

was

-

South

High

St.,

O.

Underwriter—To

Wertheim

be

&

ner

named.

& Co.

Consumers

to

Light Co.

,

poned until early Spring of 1963 its plan to issue addi¬
tional common stock.
The offering would be made to
stockholders first

on

the basis of

each 10 shares held. Based

on

ic Wulpa Parking Systems, Inc.
7, 1962
("Reg. A") 50,000 common.
Price—$4.
Business—Company plans to manufacture and operate in
the U. S. a parking device called the "Wulpa Lift."
Proceeds—For manufacture, purchase or lease of loca¬
tions and working capital.
Office—370 Seventh Ave.,

one

share for

Zayre Corp.

Power

re¬

Weld & Co.
•

Florida

debt

quarter. Address—Madison Ave., at Punch Bowl
Rd., Morristown, N. J. Underwriters — (Competitive).
Probable bidders: First Boston Corp.; Halsey, Stuart &
Co. Inc.; Eastman Dillon, Union Securities &
Co.-SaloT
mon Brothers & Hutzler-Merrill
Lynch, Pierce, Fenner
& Smith Inc. (jointly); Kidder, Peabody &
Co.; White,

St., Wilmington, Del. Underwriters—(Competi¬
tive). Probable bidders: Carl M. Loeb, Rhoades & Co.;
W. C. Langley & Co.-Union Securities Co.
(jointly);
Lehman Brothers; First Boston Corp.; White, Weld &
Co.-Shields & Co. (jointly); Kidder, Peabody & Co.Merrill Lynch, Pierce, Fenner & Smith Inc. (jointly).

Underwriter—I. R. E. Investors Corp., Levittown,

Proceeds—For

fourth

Market

New York.

stocks.

June

standing on Dec. 31, 1961, the sale would involve about
418,536 shares. Proceeds—For construction. Office—600

June

common

Jersey Central Power & Light Co.6, 1962 it was reported that this company plans to
sell $11,000,000 of first mortgage bonds due 1992 in the

the number of shares out¬

common

and

payment, and construction. Office — 161-20 89th Ave.,
Jamaica, N. Y. Underwriters—To be named. The last
sale of bonds on May 3, 1956 was made by Blyth & Co.
Other bidders were: Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co.;r White, Weld & Co.
The last several
issues of preferred were sold privately. The last sale
of common on May 9, 1956 was made
through Blyth &
Co., Inc.
:•
"

March 9, 1962 it was reported that the company has post¬

1962 filed 61,000 common. Price—$5. Business
—Financing of commercial accounts receivable. Pro¬
ceeds—For general corporate purposes. Office—114 E.
40th St., N. Y. Underwriter—D. A. Bruce & Co., N. Y.

Co.-(jointly); Merrill Lynch, Pierce, Fen¬
Inc.-Kidder, Peabody & Co.-White, Weld

20,

preferred

Delaware Power &

(6/18-22)

Mar. 22,

to

addi¬

Supply Co.
1962 it was reported that tHis utility plans
sell $3,000,000 of mortgage bonds and $2,000,000 of

March

bonds, about mid-year. Proceeds—For construction.
Michigan Ave., Jackson, Mich. Under¬
writers—(Competitive). Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co.-Shields & Co. (jointly);
Harriman Ripley & Co. Inc.-First Boston Corp. (jointly);
Morgan Stanley & Co.

Underwriter—Standard Securities Corp., N. Y.

plans
an

Jamaica Water

Office—212 West

$6; for debentures $90. Business—Publishing
of encyclopedias and other reference books. Proceeds
—For debt repayment, working capital and other cor¬
porate purposes. Office—290 Broadway, Lynbrook, N. Y.

&

Smith

gage

of 6% senior conv. subord. debentures due 1972. Price—
For stocks:

i>._

(jointly). Bids—Expected Aug. 27.

Power Co.

Jan. 9, 1962 it was reported that this company plans to
sell about $40,000,000 of securities, probably first mort¬

• World Scope
Publishers, Inc.
July 31, 1961 filed 100,000 common shares and $350,000

(8/27):

320,468 common shares on a l-for710 basis. Ad¬
dress—Orpheum-Electric Bldg., Sioux City. UnderwritT
ers—(Competitive). Probable bidders: Blyth & Co.; Carl
M. Loeb, Rhoades & Co.; Ladenburg,; Thalmann & Co.-

Co., plans to sell $10 to $20
Office—297

Columbus,

Public Service Co.

tional

stock in the late spring.

common

Iowa

June 6, 1962 it was reported that this utility
offer stockholders the right to subscribe for

reported that this newly formed

Small Business Investment

million of

Weeks, N. Y. Offering—Temporarily postponed.

N. Y.

Inc.-First

Co.,

1963.

Columbus Capital Corp.

Mar.

Financial Corp.

&

Feb. 28, 1962 it was reported that this utility

City. Underwriters—(Competitive):,
Lynch, Pierce, Fenner & Smith
Inc.-White, Weld & Co. (jointly); Morgan Stanley & Co.;
Halsey, Stuart & Co. Inc.
"
*

ment

Worth

Blyth

and

sell

at Irving Trust

Probable bidders: Merrill

Detroit.-

&

Inc.;

Illinois

^ Columbia Gas System, Inc.
*
^ *r'-*.?'■. 'V/..*1*'"'
-•
June 12, 1962 it was reported that the company plans
to sell $25,000,000 of securities; possibly debentures, in

(6/25-29)5
— By amend¬
ment (max. $6.50). Business—Processing and manufac¬
turing of aluminum building products. Proceeds—For a
new building and equipment. Office—1650, Howard..St.,
Lincoln Park, Mich. Underwriter—F. J. Winckler & Co.,
Wear

Co.

Lazard Freres & Co.. (jointly).

~

tion

March 5, 1962 filed 100,000 common. Price

Work

Eastman
Dillon,
Union
Securities
&
Co.-Salomon
Brothers & Hutzler ..(jointly); Kidder, Peabody & Go.Equitable Securities Corp/ (jointly); Halsey, Stuart &

„

petitive). Probable bidders: Merrill Lynch, Pierce, Fenner
& Smith, Inc.-Lehman Brothers (jointly); Morgan
Stanley & Co.-W. E. Hutton & Co.: (jointly); Halsey,
Stuart & Co., Inc.; Blyth & Co., Inc.-First Boston Corp.
(jointly); Eastman Dillon, Union Securities & Co.-White,
Weld & Co. (jointly). Bids—Expected June 21. Informa¬

Thursday, June 14, 1962

...

Co.

7

Merrimac-Essex Electric Co.

May 9, 1962 it was reported that this subsidiary of New
England Power Co., plans to merge with two other com,

5

specialty stores.

Proceeds—For working capital. Office
—One Mercer Rd., Natick, Mass. Underwriter—Lehman

writers—To be named. The last rights offering of com¬
mon

on May 4, 1959 was underwritten
by Kidder, Peabody & Co., and Merrill Lynch, Pierce, Fenner & Smith
Inc., N. Y. Offering—Expected in October, 1962.

Brothers, N. Y. Offering—Temporarily postponed.
Zeckendorf

Properties Corp.
30, 1962 filed 100,000 class B common. Price—By
(max. $16). Business—Real estate. Proceeds
—For general corporate purposes. Office—383 Madison
Ave., N. Y. Underwriter—Harriman Ripley & Co., Inc.,
New York. Offering—Indefinitely
postponed.
March

•

Florida Power & Light Co. (7/31)
June 11, 1962 it was reported that this
utility plans to
issue $25,000,000 of first mortgage bonds due 1992. Office

amendment

—25

Zero

Mountain, Inc.
30, 1962 ("Reg. A") 100,000 common. Price—$3.
Business—Operation of underground cold storage facil¬
ities.

Proceeds—Expansion, debt repayment and working
Address—Box 594, Fayetteville, Ark/ Under¬
writer—Don D. Anderson & Co., Inc., Oklahoma City.
capital.

Corporation

News

-to know about it

Department

that

so

we

can

would

prepare

similar to those you'll find hereunder.
Would

write

an

:

telephone

you

at 25 Park

at

us

REctor

like

;

2-9570

or

Place, New York 7, N. Y.

June

12,

1962 it

y

T

r

Peachtree

St., N. E. Atlanta. Underwriters—(Com-

Securities

&

address.

★ Atlantic Coast Line RR.

(7/ll)w

-.

/>

approximately

$3,540,000 of

certificates. Office—220 E.

'...".-'.'v

1-15 -year

equipment

trust',

42nd

St., N.-.Y. Underwriters
—(Competitive). Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Brothers & Hutzler. Bids—Expected July
11

(12

noon

Baltimore
March
to

9,

issue

EDST).
Gas

1962 it
about

&

was

Electric
reported

$25,000,000

the second half of 1962

of

Co.

that this company plans
first mortgage bonds in

darly 1963. Office—Lexington
Liberty Sts., Baltimore 3, Md.
Underwriters—(Com¬
petitive). Probable bidders: Halsey, Stuart & Co.
Inc.;
White, Weld & Co.-First Boston Corp.
(jointly); Harri¬
man
Ripley & Co., Inc.-Alex. Brown & Sons (jointly),
Cincinnati

Gas

&

was




subsidiary of
30^year first

■i

>

& Co,

Nov.

12, 1962 it

7.

Registration—Scheduled

for

(11/7)

Electric Co.
(6/21)
reported that this utility plans to

?

i

and

the

SEC.

The stock

ap¬
or-

was

Sept^. 1958 agreement under
which the two carriers agreed • toshare-for-share ex¬
change of 400,000 shares and the lease of each others jet
planes during their respective busiest seasons. The CAB
later disapproved this plan and ordered the airlines to
ar

—

About

$20 per

other

corporate-purposes* Office—rMiamb International
Airport, /Miami 59, Fla. * Underwriter—Merrill - Lynch,

jr Natural Gas Pipeline Co: of America ^/. >
i
June 12, 1962 it was reported that this subsidiary of
Peoples Gas Light & Coke Co., plans to. sell $35,000,000
of

senior

two

Texas to

securities

natural
the

expansion.

.

later this year.

Business—Operation

pipeline

systems extending from
Chicago metropolitan area.: Proceeds—For
Office — 122 So. Michigan Ave., Chicago*
gas

-

Underwriter—Dillon, Read & Co. Inc.-, New York City*
Nevada

*

Feb.

-

28,

Northern

1962

it-

was

Gas

Co.

reported

;

1

/

that

this subsidiary

of

Southwest Gas Corp., plans to sell $2,000,000 of common
stock. Office—2011 Las Vegas Blvd., South, Las Vegas,

Gulf, Mobile & Ohio RR. (6/28)v
r"
June 6, 1962 it was reported that this road
plans to sell
1-15

the Board

iginally obtained under

of

:>.<■ ■/.,

of

/

.

"■

was

lanta, Ga. Underwriters—(Competitive). Probable bid¬
ders:
Blyth & Co., Inc.:'First Boston Corp.; Morgan
Stanley & Co.; Eastman Dillon, Union Securities & C6.Equitable Securities Corp. (jointly); Lehman Brothers..
Bids—Expected '-Nov. 7. /Registration—Scheduled for.

$1,575,000

;

share. Proceeds—To repay a $4,500,000 demand loan, and
x.

Oct. 5.

Oct. 5.

^

divest themselves of the stock. Price

Nev.

Underwriter—Eastman

Co., N. Y.

y..;...;/

Dillon,- Union Securities &

>/.;■

:: V'

//V

,-■■■

equipment trust certificates- ,.r
New England Power Co.
Office—230 S. Clark
St., Chicago. Underwriters—(Com¬
May 8, 1962 it was reported that this utility plans to sell
petitive). Probable bidders: Halsey s Stuart & Co. Inc.;
$12,000,000 of 30-year first mortgage, bonds in Novem¬
Salomon Brothers & Hutzler. Bids—June 28
(12 noon
ber, 1962. Proceeds—For debt repayment and construc¬
CDST) in Chicago.
tion.
Office—441
Stuart
St.,
Boston. Underwriters—
Houston Lighting & Power Co.
(Competitive). Probable bidders: Falsev, Stuart & Co.
Mar. 28, 1962 it was reported that this
company plans
Kidder, Peabody & Co.-White, Weld & Co. (jointly);
to sell $30,000,000 of first
mortgage bonds due 1992. Of¬
Inc.; Merrill Lynch, Pierce,
Fenner - &
Smith
Inc.fice—900 Fannen St., Houston, Tex. Underwriters
Lehman Brothers-Equitable Securities Corp.
(jointly);
(Competitive.) Probable bidders: Lehman BrothersFirst Boston Corp.; Kuhn, Loeb & Co.
year

.

-

or

and

April 17, 1962 it

•

of

proval

reported that this subsidiary of
the Southern Co. plans to offer
$7,000,000 of preferred
stock in November.
Office—270 Peachtree Bldg.,: At¬

June 13, 1962 it was reported that
company plans to issue

City (managing).

Pan American World Airway's Inc., subject to final

Georgia Power Co.

:

17.

Airlines, Inc.
/
May 8, 1961, it was reported that the CAB had approved
the company's plan to sell publicly 400,000 shares of

mortgage bonds in November.
Office—270 Peachtree
Bldg., Atlanta, Ga. Underwriters—(Competitive). Prob¬

On Jan.

Probable bidders:

National

(11/7)

(jointly); First
Brothers; Morgan Stanley & Co.-

-

Co.

was

Monterey Gas Transmission Co/.;/;\^
April 24, 1961 it was reported that Humble Oil & Refining Co., a subsidiary of Standard Oil Co. of New Jersey,
and Lehman Brothers, had formed this new company
to transport natural gas from southwest Texas to Alex¬
andria, La.,:for sale to United Fuel Gas/Co., principal
supplier to other Columbia Gas System companies.: It
is expected that the pipeline will be financed in part by
public sale of bonds; Underwriter—Lehman Brothers,
New York

;

Bids—Expected

(jointly). Bids—Expected July
25
(11 a.m. EDST) at 90 Broad St. (19th
floor), New
York. Information
Meeting—July 23 (11 a.m. EDST) at
same

;

to $6,000,000 convertible debentures of
Major Realty Corp., an affiliate. Office—223 East Alleg¬
hany Ave., Philadelphia. Underwriter—To be named.
The last rights offering in December 1957 was underwritten by Eastman
Dillon, Union Securities & Co.,

Eastman Dillon, Union Securities
Boston Corp.; Lehman

.

petitive). Probable -bidders: Stone & Webster Securities
Corp.White, Weld & Cq.-Kidder,jPeabody & .Co. (joint¬
ly); First Boston Corp.; Shields & Co.; Halsey, Stuart &
Co.
Inc.; Equitable Securities Corp.-Eastman
Dillon,
Union

;

(

Halsey, Stuart & Co., Inc.; Harriman Rip¬
ley & Co.. Inc.; Blyth & Co., Inc.; Kidder, Peabody &
Co.-Shields & Co. (jointly); Equitable Securities
Corp.-

$7,500,000 of debentures

243

pected July

able bidders:

reported that this utility plans to
due Aug. 1, 1982. Office—

was

sell

1962 it

St., Jefferson City; Mo.-: Underwriters—
Halsey,- Stuart & Co.
Inc.; First Boston Corp.; White, Weld & Co. Bids—Ex¬

Business—Development and operation of shopping cen-,
ters. Proceeds—To retire
outstanding 6% preferred stock

On Jan. 12, 1962 it was
reported that, this
the Southern Co. plans to offer
$23,000,000

Prospective Offerings

6,

Light Co.. (7/17)
reported that this utility plans to

West Hight

(Competitive).

.

Georgia Power Co.

(7/25)

106

which will be offered to stockholders through
subscrip¬
rights on a l-for-10 basis. Price—By amendment.

New York.

•jAr Atlanta Gas Light Co.

June

Power &

'

and purchase up

item

Missouri

sell $6,000,000 of first mortgage bonds due 1992. Office—

Fla.

tion

:

us

Miami,

Properties, Inc..
:V-;:.
11, 1962 stockholders authorized the company to
issue 756,000 shares of a new convertible
preferred stock

issue you're planning to register?

an

Ave.,

Food Fair

/

Our

Second

whl0li^ wiR /issue $20,000,000*of.

mortgage-bonds. Office/-— 441 Stuart Sb, Boston.
Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co. Inc.; Kidder, Peabody & Co.-White, Weld
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc.-Eastman Dillon, Union Securities & Co. (jointly);
First Boston Corp.
;;
/
•

May

ATTENTION UNDERWRITERS!
Do you have

E.

first

;

Underwriters—
(Competitive), Probable, bidders: Merrill Lynch, Pierce,
"Fenner & Smith Inc-Kidder, Peabody & Co.
(jointly);
Halsey, Stuart & Co. Inc.; White, Weld & Co.; First
Boston Corp.; Blyth &
Co., Inc. Bids—Expected July 31
(11:30 a.m. EDST).

March

•

S.

panies in> July after

—•

Volume

Number 6168

195

.

.

England Telephone & Telegraph Co.

New

Broadway, Nj Y.

of

bonds

on

Inc.

Telephone Corp.

San

Some Current Banking
v".

'

.

:

(7/19)

we

are

to

attain

to

our

national

I

re¬

(11/28)

tration—Scheduled for Nov. 1.
■-

i■

<v-

...

■

.

:;

,

'■

•

;"

•

Windjammer Cruises, Ltd.
April 18, 1962 it was reported that the company plans
to register 90,000 ordinary shares. Price—$4. Business—
Operation of "Windjammer" sailing ship cruises. Pro¬
ceeds

which

Generating Co.

Co.-Equitable Securities Corp.-Drexel & Co. (jointly);
Morgan Stanley & Co. Bids—Expected Nov. 28. Regis¬

(7/17)

goals

Electric

mortgage bonds in November. Office—600 N. 18th St.,
Birmingham, Ala. Underwriters—(Competitive) Prob¬
able bidders: First Boston Corp.; Halsey Stuart & Co.,
Inc.; White, Weld & Co.-Kidder, Peabody & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Smith Inc.-Blyth &
Co., Inc. (jointly); Eastman Dillon, Union Securities &

1962 it was reported that this road plans to sell
$9,450,000 of 1-15 year equipment trust certificates in

economic

advances from parent, and for construction.

Southern

June 12,

it was reported that this company ex¬

.

On Jan. 12, 1962 it was reported that this subsidiary oi
the Southern Co. plans to offer $6,500,000 30-year first

Diego, Calif. Underwriter—Blyth & Co., Inc., N. Y
Railway Co.

(8/7)

Pine St., St. Louis. Underwriters—(Com¬
petitive). Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co. Bids—Expected Aug. 7.

Diego Gas & Electric Co.
that this company plans
to stockholders in late
Office—861 Sixth Ave..

Southern

Telephone Co.

Office—1010

March 19, 1962 it was reported
to sell about 500,000 common
1962 to raise some $17,500,000.
San

EDST).

noon

—To repay

rt

Bids—Expected July 19.

Inc.; Kuhn, Loeb & Co.

if

,

Colorado

bank loans, and redeem outstanding 4% deben¬
1963. Office—10 Franklin St., Rochester, N. Y.
Underwriters—(Competitive). Probable bidders: First
Boston Corp.; Eastman Dillon, Union Securities & Co.Kidder, Peabody & Co. (jointly); Halsey, Stuart & Co.

Panhandle Eastern Pipe Line Co.

.i»/*•.

(9/11)

May 29, 1962 it was reported that this A. T. & T. sub¬
sidiary plans to sell $100,000,000 of debentures. Proceeds

tures due

respective busiest seasons. The CAB later disapproved
this plan and ordered the airlines to divest themselves
of the stock. Office—135 East 42nd St., N. Y. Under¬
writer—Merrill Lynch, Pierce, Fenner & Smith Inc.

.

of

(12

Southwestern Bell

^

repay

reported that the CAB had approved
the company's plan to sell its 400,000 share holdings of
National Airlines, Inc.
However, it said Pan Am must
start selling the stock within one year and complete the
sale by July 15, 1964. The stock was originally obtained
under a Sept., 9, 1958 agreement under which the two
carriers agreed to a share-for-share exchange of 400,000
shares and lease of each other's jet planes during their

8, 1961

Co.

1962

June 6, 1962 it was reported that this company plans to
issue $12,000,000 of debentures due 1987. Proceeds—To

Oct. 30, 1961 it was

March

Service

Rochester

Blyth & Co., Inc., N. Y.

American World Airways,

(Competitive). Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Brothers & Hutzler. Bids — July 17 (12
noon EDST).
—

900,000 issue. Office—70 Pine St., New York. Underwrit¬
ers—(Competitive). Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Brothers & Hutzler. Bids—Sept. 11,

this company plans
stock to stockhold¬
ers through subscription rights during the fourth quar¬
ter of 1962 or the first quarter of 1963. Office—900 15th
St., Denver, Colo. Underwriters — First Boston Corp.,
Blyth & Co., Inc., and Smith, Barney & Co., Inc.

1962 it was reported that the company's 1962
expansion program will require about, $40,000,000 of
external financing to be obtained entirely from long
or short term borrowing. Office—2223 Dodge St., Omaha,
Neb. Underwriter—To be named. The last sale of de¬
bentures on Nov. 16, 1960 was handled on a negotiated

Pan

$18,900,000

Underwriters—•

of 1-15 year equipment trust certificates in
September. This is the second instalment of a total $18,-

March 9, 1962 it was reported that
to sell about $30,000,000 of common

28,

basis by

total

a

York.

$9,450,000

Public

Northern Natural Gas Co.',,:
Feb.

New

June 12, 1962 it was reported that this road plans to sell

000,000 of maturing bonds. Office—9th and Hamilton
Sts., Allentown, Pa. Underwriters—To be named. The
last sale of bonds on Nov. 29, 1961 was won at com¬
petitive bidding by White, Weld &"Co., and Kidder,
Peabody & Co. Other bidders were Halsey, Stuart &
Co. Inc.; First Boston Corp.-Drexel & Co. (jointly).

Underwriters—To be
July 14, 1960, was
handled by First. Boston Corp. Other bidders were:
Halsey, Stuart & Co., Inc.; Blyth & Co.; Inc-Equitable
Securities Corp. (jointly); Glore, Forgan & Co.
sale

last

St.,

$93,000,000 in debt financing in the period 1962 to 1970,
Proceeds—^For construction and the retirement of $17,-

About $25,000,000 of this, in the form of a debt
half of 1962. Office—

The

Pine

61

Feb. 20, 1962 Jack K. Busby, President and C. E. Oakes,
Chairman, stated that the company will require about

issue, will be sold in the second
615 Eastern Ave., Bellwood, 111.
named.

Office—70

★ Southern Railway Co.

Pennsylvania Power & Light Co.

}" Northern Illinois Gas Co.,
Feb. 28, 1962 it was reported that the company expects
to raise $125,000,000 to finance its 1962-66 construction
program.

<

This is the first instalment of

issue.

Peabody & Co., both of New York City (mgr.). Offering
—Expected in the fourth quarter of 1962.
^
1
-

Underwriters—(Competitive)
Stanley &
Co.; Halsey, Stuart & Co. Inc. Bids—Expected July 10
St., Boston.

Probable bidders: First Boston Corp.; Morgan
at 195

July.

pects to sell about $72,000,000 of debentures sometime in
1962, subject to FPC approval of its construction program.
Office—120 Broadway, New York City. UnderwritersMerrill Lynch, Pierce, Fenner & Smith Inc., and Kidder

(7/10);;

1962 it was reported that this company plans ;
to sell $50,000,000 debentures due-2002. Proceeds—To
repay advances from A. T. & T., parent company. Office

May 16,

—185 Franklin

(2813)

Financial Chronicle

The Commercial and

.

P.

—

O.

For

acquisition of additional vessels. Office —
918, Nassau, Bahamas. Underwriter — J. I.

Box

Magaril Co., Inc., N: Y.

duction and elimination of quotas,

the

tariffs and other restrictive

sideration, legislation to authorize

meas-

Senate

has

now

under

con-

earlier. There is no other ures. To succeed in such negotia- United States participation,
by which we can Simula tions the United States must, of
The new arrangement will protaneously meet our international course, have, something to offer vide an important means by which
commitments,
advance
toward other countriea in .the^ form pf m-j^medium «r term . credits may be
freer trade for the benefit of the creased access to our markets; the available
through the Fund to
this country have fallen short of United States and the rest of the Trade Expansion Act now before cope with any threat to the stathe
Congress
is
designed
to bility of the international payour
payments abroad by a con- world, and yet obtain the desired
important
goals, ments mechanism. The credit fasiderably larger margin than in improvement in our balance of promote these
Adoption of adequate legislation cilities may be used while both
earlier years.
payments.
\

■'

:

ferred

-

1'.

,

■

way

,

Problems

Continued from page 15

convertible

freely

....

world

the

of

rencies

at

must

fixed

be
ex¬

rates.

change

before us the
are highly important problem of reconcerned with the promotion of ducing substantially our country's
adverse balance of payments. Last
equilibrium in international pay¬
ments and with the defense of the year our payments deficit was
international position of the dol¬ $2'% billion, and the associated
decline in our gold stock was $878
lar.
Thus, the Federal Reserve
the United
States Treasury

Today

and

For

many

years

no
States.

the

II

War

ployed
sources

to

help

world

free

for

the

Following World
United States em¬

productive

great

its

payments

problem

presented
United

interna¬

the
of

balance

tional

Problem

rebuild

a

re¬

of

build dollar assets to serve as

balances

and

as

mone¬

tary reserves. The world-wide de¬
mand for United States products
and

services

cities

led

world of scar¬
much talk about a

in

to

a

"dollar gap." By the
of 1958, however, the dollar
had disappeared. The eco¬

that

is clear

it

hard

a

only

and

That

fort.

row

after

ahead

ef-

great

must

effort

tinued with

be

con-

greater vigor.

even

Efforts at Solution
Solution

of

for

rections. The
must include:

(1)
from

Increasing
business

our

net receipts
with

defense

and

other

to

economic

countries

assist-

needing

such

assistance;
(3) supplementing our gold reserves
through the International

in
Western
Europe and the increase in that
area's
gold and dollar reserves Monetary Fund and other coopenabled
the
major
Western erative arrangements, which could
European countries to make their be used by us, to deal with terncurrencies freely convertible into porary pressures upon the interdollars and other currencies for national
payments
mechanism;
current use by their citizens, and and
to
(4) having fiscal and monetary
begin to dismantle the dis¬
criminatory barriers which had policies that will promote equibeen maintained against imports librium in the flow of international payments, as well as growth
from the dollar area.
*
In recent years United States in domestic economic activity and
to

rise

as

we

pmninvmpnt

leadership, have remained high.
Despite the substantial relaxation
of controls by foreign countries,

of

of International

Sh

Responsibilities
important goal of the
States has been^ and no

doubt will continue to be, to encoarage other advanced industrial
nations to undertake a more
equitable share of defense and

development assistance expendi-

Specifically, the United
States has sought with some degree of success to obtain the prePayment of the indebtedness of
°tltie:r countries to the United
States, and the purchase by
European countries of a larger
portion of their military defense

equipment in the United States;
Jh.ese payments by foreign countries Paftially offset our

military

expenditures abroad. Our government jjas also been seeking to

persuade

other

governments

to

movements and to develop their

Strong Domestic Economy
The

line

first

of

and

defense

most

of

the

important
dollar

is

here at home. United States

goods

remain

com-

and

services

must

respect is essential.

the deficit countries and the surplus countries take the necessary

.

Continuing Problem
The

solution

of

steps to bring their international

balance

our

of

°wn internal capital markets so
that they will not have to rely
s0 heavily on our capital market,
The

Administration

is

seeking

payments into balance,

payments

shot"

of international money

United

flows, the

continue

will

States

the years to

how to conduct its affairs

avoid
ance

over

have the problem of
so

to

as

persistently adverse bal-

a

of payments.

International Financial
Cooperation

.

i

WOuld

like

Monetary Fund
i

_

In recent years

discuss

to

aspects of internafinancial
cooperation
in

tional

which the Federal Reserve is en-

gaged. In

world of convertible

a

currencies and rising internationai trade, the volume and volatility
0f international payments is

bound to rise.
economic

are

of any

ances

threat

Thus, when there

political disturbkind, there is always
the spreading and
or

of

intensification
International

next

the

of

some

the

of

pressure

to

the

point where the stability of the

the InternationMonetary Fund has played an
increasing
role
in
helping
its

entire international payments sys-

member countries

over

in

nancial

periods.

By

facilities,

members

al

liberalize their controls on capital

have increased our

imports from abroad, and as the
military spending, economic aid
and foreign investment,
charac¬
teristic of our position of world

modernization

term interest rates,

^ ^

'

(2) reducing the net outflow of
payments by the United States
Government
without
impairing
our
international responsibilities
ance

payments abroad have continued

in

plant and equipment. In an at¬
mosphere of over-all price sta¬
bility, monetary policy has sought
to promote a fuller use of domes-

•

end

resurgence

vestments

problem

transactions

in this

problem is not a "one
proposition.
The
various
components of the balance of payments are dynamic. We must be
siderable attention — as we all
know—to the task of holding the constantly alert to the forces of
change in those components; we
wage-price line. It has adopted must be
ready
to
cope
with
some
plans, and has proposed
change. In a world of convertible
others, to promote business incurrencies and increasing freedom

tic "resources and the productivity
gains this could bring, while seekgoals of such effort ing to avoid, for balance of payV
ments reasons, very low shortthe

bSc^-00111'

for

nomic

Recognition of this reality is
clearly spreading. It is reflected
in current fiscal and monetary
policies. Thus, the Administration
has stressed the importance of a
balanced budget for the coming
fiscal year, and has devoted con;

calls
sustained effort in many di-

permanent
gap

have

was

three

Progress in this area comes

viable

through
American payments for assistance,
military
purposes
and
foreign
goods. The foreign countries used
the
dollars
to
buy goods and
services in the United States and
working

us.

slowly

countries acquired dollars

to

still

we

record

of the

each

preceding years,

Foreign

economy.

in

than

better

the

While

million.
Balance of Payments

have

we

Fund's

obtained
cies

of

the

countries

thus increased

the
have

of

use

convertible

other

reserves.

critical fi-

curren-

and

tern may
0f

to

of

25

Monetary Fund to be used by the
in loans to one or more of

Fund

participating countries
a

threat

to

the

the

renewal, after
of official
United States operations in convertible foreign currencies,

Stabilization

A recent example is the

tl7e/«atLf-1iCvtl0nJt0 T2£e a toM
.J5.®, billion the standby credit
facilities
to
International

of

led

years,

have

their international

$1%
billion
drawing
(coupled with a $% billion standby credit) obtained by. Britain in
August,
1961,
almost
half
of
which has already been repaid.
During the last several months,
important steps have been taken
to enlarge the resouces of the International Monetary Fund. Early
this year 10 industrial countries,
including the
members
of the
European Economic Community,
the
United
Kingdom,
Sweden,
Canada, Japan and the United
States, agreed, subject to legisla-

event

1961

iapse

a

•

record

the

be jeopardized. A period
uncertainty early

considerable

in

the

world

Fund Operations in

German Marks

'

in March 1961 the German mark

Dutch

the

and

valued—i.e.,
creased

guilder were retheir value was in-

in relation

to the

The revaluation set off

a

dollar,

wave

of

apprehension that there might be
additional
changes
in
the
par
values

of various

particular, it
that

was

another

currencies.

In

widely thought

upward

adjustment

in the German mark might be in-

evitable.
on

the

Let

This

brought

pressures

dollar.
us

pressures

see

how

came

some

of

these

about. Some per-

who held dollars and would
need marks in the future for busi-

sons

negs

purposes

were

inclined

to

buy marks with the dollars im_
me(jiately, before marks became
more
expensive; they made spat
sales 0£ <j0nars for marks in the

to expand the international trad- payments system.
The share of foreign exchange market.
Other
come
even
more
ing opportunities of the United the United States in this underpersons with dollars but with no
with those of the rapidly advanc- States by negotiating with other
our receipts from the sale of our
taking is $2 billion. The House of business needs for marks also conproducts and services abroad and ing foreign industrial nations. We countries
the liberalization of
Continued on page 62
from investments by foreigners in must be successful in this respect their import policies, and the re¬ Representatives has adopted, and




petitive

—

rather,

they must becompetitive —

<

62

The Commercial and Financial Chronicle

(2814)

forward Swiss francs rose ubstan—

Some Current

The

*

largest

single -transaction

tiaUy. From the start it was ap- that has been effected

the international

of

and
thus
large System account is the swap, an- smooth out some of the strains in
eventually nounced on March 1, of $50 mil- connection with large-scale shifts
tend to strengthen the dollar in lion for an equivalent amount of of funds from
one
country : to
relation to the Swiss franc; this French francs. This exchange of another.
is, in fact, what has gradually currencies between France and
happened—though not without in- ourselves, as-was stated in our
Conclusionterrupftion—since the turn of the press release at that time, ' "will
In conclusion, I would emphayear. We have recently made sub- facilitate official intervention < in size that the years ahead will
pose
stantial progress in liquidating our the foreign exchange markets in stiff tests for all of us, ;both within
forward commitments in Swiss the event .that such intervention and outside the Federal Reserve
francs.
•
may become advisable." As fur- System. Success will
depend

Problems

payments

mechanism

would

deficit

trade

«/

of lubricant

far for

so

Thursday, June 14, 1962

Switzerland's

that

parent

And Monetary

.

_

.

_

marks

into

dollars

their

.

r

central

Some

^serves

hold their rese

Continued from page 61
verted

f.

.

statutes

»anKs, pursu

their

•

the chance that they might
^
make a profit on a further rei v valuation. As dollars were offered

just

•

on

the ^llar dedlned to
relation to the mark.

^

central

h

^serves iu g

,

hold-

lncreas

-

f

tor marks,
price

in

_

Other

cases

were

more^ compll-

"

United

the

frQm

gQld

re-

General Comment
currency
Currency

on

Foreign

uyeiaiwus ;
Operations t

.

upon self-restraint in

and

;

.

■

--

determine

tne

wisest

reserves

receipts
in the forward
for marks, thus fixing in
advance the amount of marks he
would
receive
for
any
given
dollar

market

■■■SS°2?iorterofnrotecttng himself
the exporter of protecting MmsaS
in
on

^1S
the

forward marks. Because so

h^marks

f

dreids.of m

premium in the forward market.
of

marks

reluctant

were

to sell them for dollars for future

delivery in spite of the premium.
The increased premium and the
reduced supply of marks created
«

TnPnPr^e0nsiTKS
^elation
value aPp[®be,
of the dolla

further

the

,,

.

German

+v»incf
^

thp

exoorter

hnrrow

a

might do was
immediately,

to b

dollars

.

p

the

P

doBars

to" buy
nuy

amount^of

anequivalent
®
q.

io

fw

thii«

a

Murine

recSving ^arks
rofp

TTnnn

rereint of the dol-

arising out of the export, the
could use the proceeds
pay the
loan.
The exporter

exporter
chose

between

the

two

alterna-

tives on the basis of relative costs.
United
States : importers
and

owing

,:

cooperation withtheGerman

the marks to

this

back

stantial

expensive in
the future.
There was, of course, nothing reprehensible

in

these

an

shuation?

Another Source of Dollar Pressure

Another

of

source

dollar

arose

as

pressure

on

holders

some

nuiucxs

^eacbing

f

p'y®"iasfealyfne
g

sterling chose to convert sterling into marks and other Continental European currencies. Because of the position of the dollar
as a key currency, the conversion
frequently involved the sale of
pounds for dollars and the subsequent sale of the dollars for marks
t

_

,

other ^cirori r.,irrpnries.
desired currencies.
Most

caDacitv

p

major European
ntral banks are obligated, under
aer
the
rules
of
the
European
Monetary Agreement, to maintain
their onrronnica within
currencies within

a
ranee
a range

three-quarters of 1% above
low

the

rencies
Thus

par

value

central

currency and sells
the
spot
rate
on

or

of their

in relation to

each

a

|0rS
of

its

bro^lt

the

c„n

p"

infiuene'e

on

could

control

we

need

marks, forward
purchases were a cheap alterna-

bye to the immediate borrowing
^
pf dollars and their conversion

bank

buys its
dollars when
its

into marks
The

the spot market.

in

operation was successful.
intervention was on a
scale. At one time there

Initially,
large
were

outstanding

forward

tracts

for

of

the

sale

more

con-

than

$300 million worth of marks. The

V"""

—

pletely within nine months, and
the market m German marks is
now

Reassured

bv

in

de-

of

fend
rates.

currency

g

strong deof such a
country, its central bank is R^ely
to acquire a large amount of dolis a

for the currency

Jars.

marks

operations

in

German

are

mg out of
...

abnormal factors.

..

Fimd

oDerations

^^^^^cies
Other Currencies

in

1932

the Federal Open

York to undertake transactions in
foreign currencies for the System
Open Market Account in accordwith

ance

the

Committee's

structions.1 ;

The bagic
Opera^ons

0f System
foreign currencies,
the Federal Open

purposes

jn

pi»v«'vvu

».....

.V

they

had good results from
operations in Swiss francs beginmng in the summer of 1961
when,

uv.iv

3.042% net interest cost. Other

a

members of the syndicate included
Eastman Dillon, Union Securities
& Co> Blair & to and Equitable
Securities Corp.'The bonds were

<» *> <***

have
T0wn

0f

Hamhur?

on <heir bid of 100.38 for
^be
) als.a for

New

dollar in international

ex-

efficient
efficient

and

in
In

avoiding disorderly conditions in
exchange markets;

(3) to further monetary cooperation with pcuwax banks of
wxnx
central
utuc.i
other
countries maintaining convertible

""un

currencies, with the International
Monetary Fund, and with. other
international
payments
institutions;
(4)
and

*

coupon^,

Dollar
In

Ncgtheni

the

Bonds Improve

bond

revenue

^trarigeT.as it might

Trust Co., ^lair & Co.,.Inc., Roose-

are

areay as

prices

seem,

slightly better this

.H.WelZt%
M-^Cy^oUeredat
a
out at3.84e% fKiaw^ek
the Index

170yo to J.oUTo, good myestor ae
mand appear edwiththe present

A

3

$°10'000The Buffalo. Sewer
New York awarded

term

syndicate
aye c- J. Deyme -& Co.,_
blower & Weeks,
^Reynolds & Co.
and the First Michigan
Coiy. Tlie
bonds were offered^^to Yield from

.

temporarv imbalances in interna-

had

issues

arademreLnuCeePbond^
Srade - xevenue bond-was

done

OmTuesday evening

bonds

are

one-

durj

no

issue $41,425,009; revenue bonds to
TefUnd $27,628,000 of

outstanding

bonds and to provide for
improve--

and extensions to the pro ject uuim iruvcou &
jobn Nuveen ec Co.
and jd. u*
yv/. aiiu B. J.
Van Ingen & Co. have
been named
to handle this
financing. Further
details are not now
available. :

$3 465000

Prions

------

pur-

Today's

were

$100,000,000

State' of

f tl
f drAtTlflipfl California issue would seem' to
^^raea to tne^ group jmanag
pose no marketing problem.' At

0J

A

100 4299

for

2 95%
2.95%

a

i®aS^ tkSee
^oming-for

coupon.
coupon,

beirie offered
being offered to
yield from 1.60% to 3.10% and as
Thp
The

we

hftnds
bonds

arp
are

to* press

"go

balance

a

^be

in
xii

the
mc

new
atw

saw

some

issue

.

Hadley In v. Branch
WICHITA

slackening

volume

uout

interest

ghould.be generated/

California^ Today

Yesterday

should be forth-

thisiarge issue and, at
^SSlS
d' a,t
currently generous yield level,

wide$pread-'investor

of

$1,750,000 remains in account.

+im£l
tional

J

FALLS,-Tex.—Handley

Investment Co.

which

'

.

nSJZti that
Davmentr^that^mnT1^' Save underwriters a chance to branch office at
"3verselv' affect monpfarv rP^rxrZ P°nder the $100,000,000 State of Drive under the

tary xeserve

about

in the near future. 7t
was
ann0unced on Monday of this-week
that the Chelan
County, Washings
^on p ^ D No. 1 has planned to

good
good

'

at

important-negotiissuesfready for marketing

akd

3%% coupon

a

There

together with these banks

institutions, to help moderate

stood,

indicating that this
category of long-

quoted

week.

Union^ Securities

& Co. and associates ata net jnterest cost_ of ^.103%. Other members of _the_ successful

Pose

ago

thus

^OGO OOO^rev- quarter better on the average
1967-1986^ to mg this feverish

bonds
due
Eastman Dillon,
enue

q„mm^Nfw

week

g6%,

dollar'

*
Authority,

*

iof-^international.

more
more

y Ine

$140,000.

Co. account. Cither membersottne

winning group are The1

cost ^entered by the Amer-

a^.30%

^fy^ln\he0ftedrd^Pbe^^

2.25% to3.30%for

are:

(1) To help safeguord the value

u

-

_x

has -opened
1

p,,

»

1511

a

T,

A

Beverlv

management

of

California loan scheduled for to-

Earl Peronto.
\
: v
day. There were, however, two
^ -n tbe long run> to make i^ues of • note
'5A_,ln
long run, to make issues of - note which sold on
Form filv'WiJft
possible growth in the
P°ssible growth in the liquid as- Wednesday.
A
group
headed
y- vviue inv«
".."SlnUTn
sets available to international jointly by the Franklin
FLUSHING, N. Y.—-Paul B. Karsch
a
money markets in accordance with Bank of Long
J®
is engaging in a securities busithe needs of an expanding world
ness from offices at 65-94 162nd
DlJvloi?L
economy.
Wd for
Street under ther firm name of
submitted the best bid
u
a
In carrying out these obiectives nnn
earrvina out these
Tdir^
' York City-Wide Investors Co. /
objectives 900 bonds of lshp, New
000
Co'.
Islip,

nositirnis*

arid

'

.

.

,

^

*

J

X?

^

.

J1

T-l

1

1J_

1

Is^ ^A^tr5?Q

+bp

^vstpm

iiiuvihk

of

wiui

that

through

i;auw.un.

any

an

iivuvj

«w»i>

•"«"

Switzerland and the premium

on

will

course

^th caXn

dictateg

011„v,

sucb

be

Pmdence
xnuuexicc

operation

initial and experiJL. A

cental"phase; "riT"addition7the
phase; in addition, the

united States balance of
payments
position simply is not favorable at
the moment to the acquisition of
amounts

rencies

through

of

foreign

normal

cur-

market

channels
1 For

the

AC!

text

Amenamem/,

(1962)

pp.

Union Free School District No. 12
serial
owxxwx
(1963- 1992)
bonds.
The
j?"
~"oiLot
ffrnnn
bid
100.91
for
a
group
bid
100.91
for
a
3%%
coupon.

This compared

-~

of

o/

iss-ieo.

the

Committee^

from the group headed by Halsey,
Stuart & Co. The securities are of-

fered to yield from 1.80% to 3.55%
and initial demand has been fair
over 45%
of the bonds sold.
or.noict/xH

nf

_

new

a

atcp

n~u*

—

with the second bid of 100.79 also
with the second bid of
for a 3y2% coupon which came

week's final
au-

_

In Securities ^
Business
"
op
ORANGE, Calif.
Marion
favorably
Deckard is

with

Different




in-

'

•

as stated by
Market Committee,

major

also

1

spect to the form in which

at

-

duPont & Co. Scaled to yield from
lt70% to 3.30%, about 70% of the

-

a good
example of the
foreign currency operations may
tions may play in relieving strains
in international
money flows ris-

We

6

-

role that

.

:

page

#

These

.

currency;
:urrency;

different

a

More^

'

cur-

and it sells its
jt sells its
and buys dollars whenever the spot rate on its currency
reaches a premium of three-quarters
of
1%
above
the
dollar,

have

be

felt

payments
payments

would

1

1

the

(2) to aid in making the existing
system

who

"

.

.

dollar.

discount of three-quarbelow the par value

Therefore, if there

deficit

under

13

had

we

As the premium on .forward marks
declined, holders of dollars were

be-

currency

mand

was

navments

nf

functioning normally. I believe that the turning of the tide
the
of was
was
facilitated
because
of
facilita ®
traders

1%

of

ajd

^©untrv

^ tb

_

reaches

+0

?

interVal that

nn

fo^
p-

-riiv~"ia"

17^1062. * "Vc ^lty' ^ew

vV/'y

,v

weel^.than
velt & Cross, Inc., Manufacturers
they were a week ago. The Comthe government-and
graders Trust Co.,
mercial and Financial Chronicle's
in the difficult blower & Weeks, Hayiden,Btone
revenil€
bond (toll
road, bridge
bound to elapse & Go., Wood, Struthers &
Co^and
d utinty revenue) yield Index

believed

Market Committee authorized,the
Federat Reserve
Bank/of New

.arrangement was liquidated comarrangement was liauidated com-

the

of

beyond the water's edge
sides.
Furthermore,

both
.

s a

.

of

or

pfog-

and capital

less inclined to
less inclined to convert them into
.into
marks right away; and for those

them-

loss in

the

money

^

«?mrfvrsLekin?torSprotect
abnormal

"jttier th^

to ®xert a steaay
at bott spot

actions

nnlirv nf

a

international integra-

cen

nufpo+lv^c
objectiv s

+

United States.

'

Scarry-

rapkl
in the

ress

of

"L.y,u
German prepayme

y

,

^roaP mSnii?e4 y
interest
Trust Co. of Western New Yorlt {-on

forward

operation were
April, 1961, the United Stat
cepted

V

^^———————

the tactical Continued from

f fniinw

tion of national

dollars into marks. In particular,
the United States Treasury, acting
through the Federal Reserve Bank
of New York and working in close

marks also
their acqui-

more

0f

Accordinglyj the American and markets, the effects of monetary
Accordingly, the American and
German authorities took steps to
conversion

-

,

_

<bond^

ld

Successful Foreign iixchajige SaJe

further

-

became clear that the Federal Re-

of

'grred to slow ^ stopy*the flow

the

payments problem. Such opera-• ;
tions can, however, act as
sort Jersey, May

exchanSe markets—with the FedReserve Bank of New York
acting as its fiscal agent—the Fed-

States,'tbpva<5 wpii as wp nr~
they, as well
we, pre-

the exchange operatio
drive down the*;premium on
sition of marks in order to pro- ward marks, which reflec
tect themselves against the poshens:10
+.
+Il nnrmal
sibility that marks might become changes
persons

sought to accelerate

brunt

defense hf the dollar in^he foreign

,

other

more

-

y:y;.;y

■

the Treasury was

ing. ;the

foreign exchange markef. Some of

lars

to

question

r€quire

-

measures,

,;.y;

;

..

do wi+h the dollars While

™ifrrent

the

at

the

will

-

Federal Reserve Operations

tral bank, made large forward
sales of marks in the New York

immediate

whkh

fundamental

economy was increased
German central bank was

himself of

f

lfim

equivalent amount

Snfront^ wfth

reduce

J?6

basic cause of our deficits prob-

last

lho:While

the saiehi an

have;

described and hot to remedy the

to sell doliars andbuy marks last
spnng the;price of the dollartie
clined and the German central
bank was required to buy hun-

wbai.

Holders

nowever, is ymy w ix«w6«^
ditions similar to those 1.

wnnfpr1

^

stances, the German exporter was
likely to do one of two things:
One, he might sell his expected

in

way

should be held,

'

-

.private price

policies, und upon <an
enligMened ,response by the genera!
public -to ,the^ challenges
wage
wage

-ouw

Operations by the United States

which ,its

—

-

States
The

lars, he would incur a »uss u.,
the meantime, the mark were revalued.
Under
such
circum-

upon

,

the dollars to buy

,should

t

"

issue

«9 R7R nnn

of

Pair-

conducting

,hminPSfi frftW ^
business
-

H.

securities

Uv.vrVt*«VAV.k3

from"offices°at 122^A Sck

Qlassell
name

a

^

0f

iiou

o.

Street under
the
firm
of Deckard
Investment
Co.

N

Boulevard

x>ouievara investors
Investors

The iirm

vestment

of

name

Boulevard

Company,
—

-

—

150
■

■

-

In-

Broad-

:

Volume

Number 6168

195

The Commercial and Financial Chronicle

.;

.

TXTTYTTQTPV

Qf of CL nf TP A T^TP onrl

Intercity Trucking: Gains 7.8%

1 lie Qiate 01 l JttilJJlLl anu llN U U 01IX I
i,

.

,

+i,A

,

.

Continued frorn page 16

,

+„

+i,n

imp©]rtedsteel, 1the co:stt5

than a year ago in wholesale trade
an<* construction *'but casualties
the,volume in the correspond- continued close to 1961 levels in

week

comes much closer to tne domestic

propriations represent funds set
aside by company managements
and entered "on the books."

price.

Noticeably fewer businesses failed

Intercity truck tonnage in the

11ccir

Industrial Conference Board. Ap-

;struction inched to 48 from 46. Atlantic

Over Last Year's Week

-

®

(2815)

Q^

qnded June 2

7,8% ahead

was

ing week of 1961, the American other industry and trade groups.
Nevertheless, imported steel is Trucking Associations announced.
Regionally,
failures
resurged
;

confined

longer

no

'

.

.

coastal

to

Truck tonnage

10.7%

was

behind

strongly in the Middle Atlantic
States to 90 from 56, in New England to 21 from 5, and in the

It is showing up in larger
seven
major metalworking cate- tonnages in inland areas through
gories responded to the latest Iron shipments by barge, and through
Age-NICB
Survey.
The metal- the st- Lawrence Seaway.
than

More

weekly reports all data

working

_

to

Js seasonally adjusted,
""Behind the marked rise in capi-:
tal

spending plans of metalwork-

'•»•_ U

the magazine.;

Market Crash

.

^

,

.....

But.; NICB
economist, Martin
Gainsbrugh, and the metalworking
.

weekly caution that appropriation
decisions on capital spending were

market
jolt last month, and the Presidenfhade

the

to

prior

stock

down of a price hike in
April.
However, the extent to which

tial slap
steel in
<

„

these

appropriations arevulner-*
cancellation

to

able

with

varies

companies.

individual

In

many

in -spite of-these-setbaeks,
companies are going ahead be¬
cause of the > necessity of cutting
cases,

costs

production

increasing

and

productivity.: -

there

the

over

J

v.

^

1961.
plans by

last quarter

spending

«+/\aI

w/vrt/i

vti/\n

HKl/7

-iron and steel foundries rose 55%

;in

the

$22.5

period, ' to

same

*

gains
Rpnrpri
senred
scored

first

in

sDeriding

Tanricaten
fahHrated
fabricated

in
in
in

were

nTod!

metal
metal
metal

prod¬
ucts lines. Capital set-asides here
rose
81% over last quarter 1961,
"to $99.3 million.
nroa-

.i

spot situations
have taken over,

are

Qn^e jron Age sajd

forej[gn

effor^

steelmakers

also

were

made

in- electric

and

machinery, transportaequipment, and instrument

industries.

Only

metal

furniture

makers pulled down their spend¬
ing sights. The drop in this cate¬
gory was 27 % — $4.7 million ap¬
propriated in last quarter 1961 —
$3.5 million set aside in the first
"quarter this year.- > •
-•
•
•

Economist

Gainsbrugh and the
point out that - while

.magazine

^cancellationswill be

funds

-zip

in

f

appropriated

minimal, only

new

the

'

This

sary.

exists

_

is

thq

since

Production

situation

Output Seen

tne

■

U.

•

.

of

___

_,

the

U.

S.

cars,

auto

barely

K

advantage

Pr;?rKS'
"
me-result
are
•

not

their

;

is

even

to take

lower

the

import
.

that

foreign mills

having much luck selling

own

excess

steel in the U. S.

{This is in spite of improved

de¬

livery and better quality of foreign
steel than

•

a

few years

Exceptions
trods,
barbed
staples, and
(-These

ago.

are

rebars,
wire,
nails

said that

mated at 151.486 "^8, will set the
for

pected

the

to

630,000

entire

result

1955.

ex

upwards

the

and

cars

volume since

month

In

best

:

of

June

woven

fence

and
wire.

products where cheaper
foreign steel has long made major
inroads into U. S.
are

...Last

week's

s

scheduled 25%
...

r

.

_

.

all
4.7

but

three

Of

^

the

industry's

assembly

plants were closed
for Memorial Day. In the .corre¬
sponding week of a year ago, pro¬
duction
:

;

was

In

warehouses

many

to

or




during

similar

Memorial Day weeks in previous

on

a

ju-l

o

Bond, Richman & Gerald

Bond, Richman & Gerald.
The
firm maintains a branch office in
Fair Lawn, N. J.

run

Lumber

Output Dipped 2.1%

Below 1961

•

Slightly

Off

From

Last Year's Week

of

tion

freight

revenue

in

530,829 cars, the Associa-

of

American

-

Railroads

an-

nounced. This was a decrease of
49,532 cars or 8.5%
below the

in

several

Frum^es^&^Co^536
central Avenue

from

from

and

week

270.13

in

the

27L46ba

vearlier^ However,

it

Joins Garat & Polonitza

prior
month

remained

ifioecial to The Financial Chronicle)

LOS

ANGELES, Calif.—Helen A.
Kilgore has joined the staff of

States in the week ended June 2, - above the comparable 1961 levels Garat & Rplonitza, Inc., 9229 Sun-

totaled
compared with 245,891,900

m the
pnor week' according to reports
from ,r®gio!;al associations, A year

,ag0 ih/ 4flgure was 220,943,000

n
higher,

and

gained

orders

10.7%.

"following
thousands

the

are

of

board

figures

feet

in
the

for

-

;.•? jUne

Production

June 3,

May 26,

2,

Wholesale

Food

Slightly

Up

in

Latest

^ood Price Index

P™
1.2%
the

to $5.81

highest

^ow
1960.

day

and

2ii',28o

wholesale markets
increases

amount

distributed

the

for

Week
energy

light

electric

and power

industry for the week
Saturday, June 9, was estimated at 15,876,000,000 kwh., according to the Edison Electric
Institute. Output was 405,000,000
ended

kwh.

more

vious

000

than that

week's

kwh.

of

the

hogs

also

fiour>
1L

«...

rye,

and

were

ii

—.

pound

of

31

meats

in

general

1,117,000,000 kwh.,

not

a

preceding week.

been

added

to

Montgomery Street. He
formerly with Birr & Co., Inc.

pany, 300

Peter H. Ffolliott Joins

John Nuveen & Co.
(Special to The Financial Chronicle)

_

_

t

•

ST. PAUL, Minn.—Peter H. Ffolf
liott

has

1U

.

r\

ws

nnrvni r\

/\

4-

A

ttTI

M

with

associated

become

John Nuveen & Co.,

First National

Bank Building. Mr. Ffolliott. who
has recently been with the

McGill
sales
for Stanley Gates & Co.

Company,
manager

in

the

past

was

foodstuffs

raw

cost-of-living

has

up

Wholesale Food Price Index represents the sum total of the price
and

FRANCISCO, Calif.—Harold

Brumfield

the staff of First California Com¬

beef, lard, cheese,

i

per

5.8% above that of the comparable 1961 week.

at
moderate

chalked

pre-

or

SAN

J.

were

higher

15,471,000,-

of

total

and

1961

cocoa
and eggs. Partially offsetting these increases were declines
in wholesale cost of wheat, corn,
oats, barley, sugar, cottonseed oil
and steers,
The
Dun
&
Bradstreet, Inc.
J. f

electric

of

by

Higher

the

both

of

substantially

Quote(i

ov,:

15,

was

bellies

Hams,

First Calif. Adds
(Special to The Financial Chronicle)

was

•

233,549

Than in 1961

compiled by

registered on

the

Exchange.

Kilgore was formerly with
Taylor & Company and DempseyTegeler & Co.

Inc,' ™°v;ed up

221 424

Electric Output 5.8%

Week

this week. This
level since May

of

members
Stock

Coast

Miss

but the index remained 1.4% beand

Boulevard,

Pacific

Index

holding steady at a 1962
low for two weeks, the Wholesale

252,293

The

Price

After

19(51

1.962,
245,891

—216,320

set

of 26907 by a narr°w margin

corresponding

weeks indicated.

total more than -5,567,000 units,
compared with 5,408,625 cars made
in the entire 1961 run. The 1962

Carloadings

269.72

Level

at the close of last week will

count will top six million by June
30, it was predicted.

prevailed

Greene, Ross & Goldhill

On June ","1 A1--*
11, the Daily Wholesale
^
Commodity Price Index dipped to

years,

W(>2

use.

is

It

index.

Its

chief function is to show the gentrend of food prices at the

eral

wholesale level.

corresponding

Business Failures Up After
' Holiday Lull
Recovering from the downswing

and a decrease of
7.7% below the cor-

in the two previous weeks, cornmercial and industrial failures in-

responding week in 1960.>
There were 13,943 cars reported

creased to 306 in the week ended

Although good weather did not
prevail in all areas, it helped in
many regions to boost retail pur¬

week earlier,

chases in the week ended June 6.

loaded with

reported

The loadings represented
of

crease

876

cars

below

in

44,151

cars or

.1961,

the

de-

a

two-tenths

or

.

one

or

more

highway trailers

or

highway

tainers

(piggyback)

ended May 26,

included

total).

2,112

1962

in

that

This

was

cars or

in

the

(which

week's
an

revenue

conweek
were

over-all

increase

cars

or

17.9% above the

20.6%

above

the

of

cor-

Cumulative

.

'

,

June 7

*

Weather Stimulates Consumer

.

from

280

a

Buying

Total volume exceeded last

week.

year's
by
a
moderate
margin.
Stepped-up buying of appliances,
sporting goods, garden supplies,

They did exceed the 1960 level of
283 and ran almost 10%
higher

and building materials offset some
slowing in apparel purchases. New

numerous

-occurred

Bradstreet, Inc.
casualties were not as
as
last year when 349
&

Dun

However,

in

similar

the

than the pre-war
tered in 1939.

toll of 279 regis-

level

continued to sell at

cars

topping

$100,000 moved up to 36 from 29

piggyback loadings

for the first 21

com-

a

brisk

A newspaper strike in Min¬
neapolis and a parcel delivery

pace.

\

Failures with liabilities

1960

week.

year's week

cases,
when
the price of

,

commodities and steep gains were
registered in rye and lamb prices

127,256.

Ward's said that the 1962 model

w

through

week-to-

Compared with 1961 levels, out-

corresponding
period
in
1960.
for well over 45% of the domestic There were 59 class I U.
S. railmarket, The Iron Age pointed out. road
systems originating this type
Foreign steel is generally —traffic in this
disbrokers.

_

.

increases

experienced

;jVrt

corresponding period of 1961, and
52,100 cars or 23.5% above the

freight is added

the

P"t declined 2.1%, shipments were
5%

,

,

staples, for example, account

triouted

of

121,152

above the

.

Imported barbed wire, and nails
and

•

_

Sliding fractionally through the
past week, the general wholesale

tonnage

year

-

we.

par¬

markets,

areas.

to

we.

eonnt

car

weeks of 1962 totaled 273,724 cars for an increase
of 46.068 cars or 20.2% above the

ticularly in coastal

-

board feet

.

responding week of 1961 and 2,383
wire

year.

Lumber production in the United

The statistical agency

week

further,
of

...

that

survey.

outPut last week, which it esti-

market.

orders

year

magnitude

M

latest weekly

soft market, steel users in the
TJ. S.
mill

'

,

,

week decreases is consistent with

exceeding the pace of near-record
in May, will reach another
seven-year high in June, accord7
mg to Wards Automotive Reports'

totaled

|are reluctant to out their domestic

failures

J?LdeX
Dips to New Low for Year

sales

\° In theskare
P16?1, current of 1%

S.

llTt

Los Angeles and Detroit terminals

The

1955

industry's 1962 model

^

'

One

city, Cincinnati, ollvl>vu
showed
miWM,

change from the previous

sales

were

de-

;

store

country-wide basis as taken from
the Federal Reserve Board's in¬
dex reported a 4% increase for
the week ended, June, 2, 1962,
compared with the like period in
1961. For the week ended May 26,
sales were up 7% compared with
the corresponding 1961 week. In
the four-week period ended June
2, 1962, sales were 6% above the

reported, off from 37 in the The firm name of Bond, Richman
previous week and from 44 in the & Company, 160 Broadway, New
corresponding week last year.
York City, has been changed to

tonnage
localities

level.

Week Ending June 2

Department

d

Canadian

Thirty-five

preceding week, 33 metropolitan
that. areas registered decreased ton-nage while only one area, Houston, showed an increase of 1.1%.

today.

Best June Auto

,

:

considerably.

for5 last

reflected

1961

Store

clines outweighing the increases corresponding period in 1961.

abroad—at cutrate prices if neces-

the week ended June 2, which in¬
cluded the Memorial Day holiday,

Makes Little Dent

the

Department

Sales Up 4% From 1961 for

mained lower than either a week Greene, Ross & Goldhill, Inc.
a§0_ .or a.aSo. Substantial
Frumkes Names
declines in the wholesale cost of
corn, oats, steers, tin and steel
CEDARHURST, N. Y.- Stanley I.
scrap pushed the index below the
appointed
Opolinsky has been
preceding Monday although slight

operating at a level rate of capacjty and dispose of production

Loading

Turning to another subject, The
Iron
Age reported that foreign
steel is being offered in the U. S.
at as much as $20 to
$25 below
domestic prices.
;
v
But • importers are not finding

points

from

Nationwide

Compared with the immediately

this year, foreign mills try to keep

latest

Foreign Priced Steel

five

creases

28

to+3;
South Atlantic 0 to +4; West
South Central and Pacific +1 to
-4-5; Mountain +4 to -f-8; and
East North Central +5 to +9.

commodity price level last Friday
:he
reached a new record low for 1962 The firm name of the Goldhill
of 269.61. While it eased up to Co., Inc., 115 Broadway, New
11*
AT'""
269.72 this Monday, the index re- York City, has been changed to
269.72 this Monday, the index re-

intentions.
Lower

while

at

ago

year

England

Sains of 22.6 and 21.4%, respectively. Ten other terminal cities
showed tonnage increases of more
than 10%.
" :

cyclical business

sustain

showed
a

New

Traditionally
when
the
foreign market softens as it has

strength
high level
metalworking capital spending

can

of

o

week

survey
increased

+4;

reflected

crease>

nonelectric
tion

terminal

de-

to

and East South Central —1

their share of the market will in-

The

metalworking weekly re¬
ports that rises in spending plans

The

:

no

increase

to

the

with higher—the size of the

com-

freight

of general
throughout the country.

terminal

-

4

not-change appreciably from

mbn carriers

petition.

.

\

v

than 400 truck terminals of

;

from

quarter

intentions

*

North Central casualties at 61 and
South Atlantic casualties at 40 did

preceding week. A contrasting
weekly survey of 34 metropolitan downturn prevailed in the Pacific
areas conducted by the ATA De- - States where the toll plunged to
partment of Research and Trans- 35
from 72. Comparison with
port 'Economics. The report re- year-ago levels shows five regions
fleets tonnage , handled at more with fewer casualties and four

ing of $27 a ton. The plant makes
wire products and has to use
imported steel to meet its com-

million.
caDital

J

' *

works and rolling mills, up

capital

fre-

,v

■/

reported.

South Central and Mountain. East

These findings are based oh the

(long-

are

,

was

spending in the industry >categories that include blast furnaces,

And

'

where imports
For; example, one user switched
to foreign rods because of a sav-

•tal

118%

These

quently necessary).
(3) Delivery costs.;
(4) Customer relations.

;

the first quarter, $351
appropriated for capi-

During
million

steel.

%

term commitments

But

Cautions Survey Made Before

imported

(1) Inconsistent quality.
(2) Lack of ;flexibility

,

f

.

of

use

include—

iti'g companies is the high level of.
production volume and relatively
good profits showing in the first
quarter and previous two quarters,
says

the volume for the previous week
0f this year. This decrease is
largely attributable to the Memorial Day holiday which fell on
There are traditional objections Wednesday of the latest week

araas.

companies., in

500

0

63

strike in New York

although remaining below the 45
of this size a year ago. Casualties

tail

which involved losses under $100,-

peared

000

consumer

mildly to 270 from 251,
but did not reach their comparable
last year's level of 304.
The upturn in the post-holiday
week centered in retailing where
the toll climbed to 158 from 141
rose

and

in

commercial

re¬

to

have little
buying.

effect

on

The total dollar volume of retail
trade in the

from
ago,

reported week ranged
higher than a year
according to spot estimates
1

to 5%

collected

by Dun & Bradstreet,
Regional
estimates
varied

up

Inc.

no

services,

hindered

activity in those areas. Over¬
all, stock market gyrations ap¬

from

comparable 1961 levels by
following percentages: West

pared with 58 one year ago and
53 in the corresponding week in

change in manufacturing at 46 or

the

1960.

in

North Central —3 to +1; Middle

to

25

from

18.

wholesaling

at

There

was

29 while

con-

Remember those in
the

gift

world.

Every $1

package

thru

need

across

sends
the

one

CARE

Food Crusade, New York 16,

N.Y.

64

The

(2816)

Commefcial and Financial Chronicle

f

.

.

Thursday, June 14, 1962

!'

'

■

.

June 22,

WASHINGTON AND YOU

delphia

behind-the-scenes interpretations

outing

annual

the

at

Philadelphia Cricket Club, Flourtown, Pa.

CACKLES a CO.
from the nation's

1962 (Philadelphia, Pa.)
Association of Phila¬

Investment

-SECURITIES-

June 22,

capital

New

(New York City)

1962

York

Analysts

of Security
annual outing at
Club.

Society

f1

10th

Westchester Country

WASHINGTON, D. C.—In recom¬
mending to Congress an acrossthe-board
reduction in personal
income and the corporate income
tax, President Kennedy apparent¬
ly improved the chance of passage
of the Administration's tax credit

loophole closing bill

and so-called

this year.

Committee

Senate Finance

The

has almost completed hearings on

approved bill.
The
granted the Treasury

House

the

-

Committee

retary

the

said

Dillon

before

mittee.

travel expenses for
are

to business and
industry in this country involves
credit

tax

investment

for

in

depreciable machinery and equip¬
ment.
The bill provides for the
deduction
cost of

of

7%

of

taxes

machinery and equip¬

new

United

The

and

in

Netherlands

the

have

Belgium

Kingdom,

effect similar

presently
tax credits

for investment stimulation,

it

tionably,

similar

a

States

United

credit

tax

would

help

in

of

Investment

Withholding

estimated

is

billion

a

in interest and divi¬
not reported. As a re¬

Sept. 13-14, 1962

there is a revenue loss of
$800 million a year to the
Treasury.
sult,

believes

that

the

business

-

"That

efficiency expert I

like

Florida

If

Sept. 19-21, 1962
Calif.)

that

same

income

had

been

COMING

casualty
Mutual

insurance

companies.

companies

have

been

•"

The

loophole that the Adminis¬

tration wants to close most is the
one

that is the most

publicized—

taxed since 1942

only on their in¬
income, subject to
a
minimum tax of 1% on gross in¬
vestment

accounts. Treasury Secre¬ come from all sources. Full cor¬
tary Douglas Dillon asserts that porate taxation which Congress is
the
problem involving expense unlikely
to
pass,
would
yield
accounts
is
not
simply one of about $50 million a year in addi¬
avoidance, such as disguising as tional revenue.

expense

business

the

expense

entertain¬

ment and recreation of the
or

family

the gross overestimating of ex¬

penditures

business entertain¬

on

ment.

erally

The

House-passed bill requires
that entertainment, traveling and
business expense be properly sub¬
stantiated. Tighter enforcement of

the laws
the

now

on

to

the books is not

the

problem,
Treasury Department insists.
answer

Then

what

is

the

answer?

the

entertain

acquaintances

Financial

Institutions

follow

the

House

-

passed

concerning fmutual sav¬
ings banks and savings and loan
associations.
Under
present tax

measure

laws

the

commercial

banks

discriminated against.
voted

in

Un¬

EVENTS
IN INVESTMENT FIELD

ostensi¬

bly1 to seek business, or wining or
dining
acquaintances
in
night
clubs and at cocktail parties, can
be charged

against income other¬
a result, tax-free
personal benefits can be obtained
by those offering the entertain¬

wise taxable. As

and

mutual

loan

associations

savings

banks

until

to

a

reserve

reserves,

for bad

surplus

un¬

divided

profits equal 12% of de¬
posits or withdrawable accounts.

Treasury
show

that

Department
because

of

records
this




Sec¬

[This column is uitended

be¬

June 15, 1962

views.1

June

Now Hinton Jones Granat

than

$70

million.

Sept. 23-26, 1962 (Atlantic City,
N. J.)

American Bankers Association

17-29, 1962

(Canada)

(Philadelphia, Pa.)
of Philadelphia 37th
outing and field day at
the Huntingdon Valley Country
Club, Huntingdon Valley, Pa. V"'v
Sept. 28, 1962

Bond

Canada

46th

annual

meeting

Richelieu,

Oct. 3, 1962
New

&

Granat, Inc., 1411 Fourth Ave¬
Building, has been chahged
to Hinton Jones Granat Incorpo¬

June 19, 1962

Bond

rated.

Big Springs Country Club.

summer

at

(Louisville, Ky.)

of

(New York City)

York

Group

Investment

Bankers Association Meeting.
Oct.

4-5, 1962

(Cleveland, Ohio)

Northern Ohio

Group Investment

Bankers Association Meeting.
Oct. 8, 1962

(Detroit, Mich.)

Michigan

Group

Investment

Bankers Association Meeting.

Attention Brokers and Dealers

TRADING MARKETS
American Cement
Maxson Electronics
Official
Waste
York

CAnal

Films

King

telephone number is

6-4592

Murray

nue

Club

Club

annual

Our New

Investment Dealers' Association of

the
Manoir
SEATTLE,
Wash.—The
firm
name of Blanchett,
Hinton, Jones Bay, Quebec.

an¬

nual convention.

Botany Industries

(New York City)

reflect Investment Association of New
the "behind the scene" interpretation
York, 16th annual Field Day, at
from the nation's Capital and may or Sleepy
Hollow
Country
Club,
may not coincide with the "Chronicle's"
Scarborough-on-Hudson, N. Y.
own

i

Municipal Bond Dealers Group of
Cincinnati, annual fall party, with
a field day to be held Sept.
21, at
the Losantville Country Club.

;

Valley County Club.

Meeting.

(Cincinnati,

Ohio)

tion annual outing at Whitemarsh

to

Louisville

LERNER & CO., Inc.
Investment Securities

annual

outing and election at the

10 Post Office

Square, Boston 9, Mass.

Telephone
HUbbard

Teletype

2-1990

BS

69

Co ve Vitamin & Pharmaceutical

<0

Common

At

the

and

Warrants

Versapak Film & Packaging

Carl Marks
FOREIGN
20 BROAD

same

&

Ho. Inc.

SECURITIES SPECIALISTS
STREET

tax

total Federal income taxes of less

enforcement problems,"

measure

debts

and

business expenses present diffi¬

cult

revision

deduct from their income amounts
added

ade all mutual

expenses

tax

20-21, 1962

can

disguised

"Personal

a

Sept.

The House

shelter, during the 1952-1961 dec¬
savings banks and
savings and loan associations paid

ment.

in

being passed by the Senate
fore adjournment this year.;

part to reduce this dis¬

Savings
and

result

Association

are

crimination.

der present law use of a yacht to

as

Taxing

If the Senate passes the tax re¬
vision bill, it is expected to gen¬

Vedra

(Santa Barbara,

Bankers

Board of Governors Fall

.

ment of stock and mutual fire and

(Ponte

Security Dealers Associa¬

Investment

countries as trade barriers
wages
and salaries is costly to
earned by competing financial in¬
being lowered in those coun¬ maintain. It is a proven tax gath¬
stitutions they would have been
tries. There is strong belief that ering method, however.
Tak¬
subject to corporate income tax.
we should increase our investment
June 14, 1962 (Minneapolising a little tax out of the pay en¬
The bill as passed by the House
in machinery and equipment
St. Paul)
velop or check intermittently does
would substitute for the present
without delay.
Twin City Bond
not cause any great concern to
Club 41st an¬
reserve
Our Government experts main¬ the
provision an annual de¬ nual
average taxpayer.
picnic and golf tournament
duction for reserves of bad debts
tain that we have been spending
at White Bear Yacht Club.
However, if that same taxpayer
only half proportionately to this was faced with a tax bill of sev¬ of either 3% of the net increase
in all real estate loans or 60% June 14-15, 1962 (Kansas
kind of capital outlay as has West
eral hundred dollars or a thou¬
City, Mo.)
of
the
retained
income
of
the
Germany, and only about 60% as sand or more dollars at tax
paying
mutual savings banks and build¬ Kansas City Security Traders As¬
much as the European countries.
time there would probably be an
sociation annual summer party—
The
ing and loan associations.
Kennedy
Administration,
"uprising" from
the
taxpayers.
Cocktail party at Hotel Continent¬
and President Kennedy in partic¬
The
House-approved
amend¬
The present method is the painless
ular, have been concerned about
ment would yield an additional al, June 14; golf tournament at
approach, of course, particularly
Meadowbrook County Club, June
the expenditures industry in this
$200 million a year.
However,
for the tax collectors.
15.
country planned to make in new
the
Treasury wants it further
The Treasury Department be¬
14-15,
1962
(Toronto
&
plant investment. This of course
tightened to yield $365 million a June
is the key to industrial growth lieves that dividend and interest
Montreal)
year or more.
withholding will be just as simple.
Canadian
and increasing our growth nation¬
Group
Investment
Of course there has been strong
This is disputed by many large
Bankers Association Meeting
al product.
opposition to closing the various
companies.
It
is generally
conceded now
(June
14,
Toronto;
June
15,
other
so-called
loopholes.
The
The proposed tax revision bill
that our country is going to face
Montreal).
recommended cut in personal and
stiffer
and
stiffer
competition would effect what the Treasury
corporate income tax, effective June 15, 1962 (Philadelphia, Pa.)
from the European Common Mar¬ describes as a "more equal treat¬
next Jan. 1, by the President may Philadelphia
Securities Associa¬

Expense Accounts

1962

tion annual convention.

are

ket countries.

(Chicago, 111.)

Beach, Fla.)

capacity

other

13-15,

Sept.

it—ME!"

approach about this matter would
the withholding of dividends
and interest. That is good with the

exception, and it is a big ex¬ time these institutions
piled up
which is so badly needed.
ception, that it would place a
$5.5 billion as additional to re¬
real
burden
on
the companies,
serves,
surplus
and
undivided
Foreign Competition
which are already heavily laden
profits.
Why is it needed so badly? The with bookkeeping problems forced
In effect a substantial part of
production costs in this country on them by governments—Fed¬
the untaxed additions to bad debt
are going up all the time. We are
eral, State and local.
reserves
constituted net income.
faced with keen competition from
The
withholding of taxes on
industrial

the

of

ization

hired to find the deadwood

around here found

to be

stimulate investment and modern¬

Invest¬
Meeting.

Municipal Bond Club of Chicago
outing.

Service

Revenue

Internal

Colo.)

Group

ment Bankers Association

about

Then

,

Association

(Denver,

Mountain

Rocky

$3

year

are

Meeting

(Chicago, 111.)

Bankers

Sept. 12, 1962

about

that

Group Invest¬

Municipal Conference at the PickCongress Hotel.

abuses.

Tax

It

day at

(Gearhart, Ore.)

Northwest

Sept. 11-12, 1962

Treasury believes will

many

field

ment Bankers Association

gift,

business

a

Association

Club

Pacific

limit

$25

anual

Sept. 7-8, 1962

on

vacations that
a

27th

(a cocktail
party and dinner will be held at
the Des/Moines
Club, June 27,
preceding the dinner).

'

was

brought out in hearings. Unques¬

and

(Des Moines, Iowa)

Bankers

Wakonda

Iowa

the

place re¬

gifts,

placed

value

the

dends

ment.

the

the

curb

the

of

business

House

which

on

on

as

The

the

of

combined with business travel.

provision in the bill that is

great concern

Investment

the amount to be de¬

testimony before taking final ac¬
tion on the proposal.

ducted

Invest¬

the

of

Santa Barbara Biltmore.
June 28, 1962

yachts, be disallowed in full as a
tax deduction. The Department is
also asking Congress to

Group

America annual Conference at the

Treasury

strictions

of

California

ment Bankers A s s o c i a t i o n of

Department
is
urging Congress that the cost of
business entertainment, including
club fees, and the maintenance of
entertainment facilities,
such as
The

(Santa Barbara,

Calif.)

decisive

clear-cut

"Only

June 23-26, 1962

Com¬

legislation will remedy this everworsening situation."

Department some additional time
next week to present some final

The

testimony

in

Finance

Senate

TEL: HANOVER 2-0050

•

NEW YORK 5, N. Y.

Common

and

Warrants

Bought—Sold—Quoted
f

TELETYPE NY 1-971

1ill, thompson & co., inc.
70 Wall Street, New York 5, N. Y.
Tel. WH 4-4540

•'

Tele. NY 1 -0154

*

Volume

195

Number

6168

...

A

Supplement to the Commercial and Financial Chronicle

BOND

CLUB

OF

NEW

Thursday, June

14, 1962

(1)

YORK

38th Annual Field Day—June 1,1962

H.

& Company; James F. Keresey, Baker, Weeks & Co.; H. Lawrence Bogert,
Jr., Eastman Dillon, Union Securities <£ Co.; W. Scott Cluett, Harriman Ripley & Co.
Incorporated; Earl K. Bassett, W. E. Hutton & Co.

Virgil Sherrill, Shields

Fred D.

Stone, Jr., Marine Trust Company of Western New York; Robert D. Allen, Paribas Corporation;
F. Swenson, Jr., First National Bank of Miami (Miami, Fla.); Blancke Noyes,
Hemphill, Noyes & Co.; Joseph 0. Rutter, Rutter & Co.

Edward

V

William

H. Long, Jr., Doremus & Co.; John E. Friday, Jr., Morgan
Stanley & Co.; Vincent C. Banker, R. W. Pressprich & Co.

Frederick

L.

Ehrman,

Company;

Hunter

B.

Sedlmayr,

Orin

James

Lehman Brothers; William S. Renchard, Chemical
T. Leach, Estabrook & Co.; Rudolf Smutny, R. W.

Grant, Jr., Coffin &
Merrill Lynch, Pierce,




J. Lee,

Trust

W. E. Hutton & Co.; Sidney Lanier, Morgan Guaranty
G. H. Walker, Jr., G. H. Walker & Co.

Company;

Bank New York
Pressprich <£ Co.

Trust

Burr; Austin H. Patterson, First Boston Corporation; Julius H.
Fenner & Smith Incorporated; Lewis M. Krohn, Ira Haupt & Co.

William

H.

Frederick

Worthington
First

G. H. Wcdher & Co.; James A Cooper,
Corporation; Andrew Blum, Gregory & Sons

Mayo-Smith,

Boston

Todd, Kuhn, Loeh & Co.; James D. Casey, Jr., A. C. Allyn & Co.; Robert F.
Smith, Barney & Co.; Peter V. N. Philip, W. H. Morton & Co. Incorporated

Seebeck,

S. Robinson, Frederick S. Robinson & Co. Inc.; Col. Oliver J. Troster,
Troster, Singer
Co.; Malon S. Andrus, Malon S. Andrus, Inc.; William S. Wilson, Montgomery, Scott & Co,

A

(2)

Marvin Levy,

195

Lehman Brothers; David J. Lewis, Paine, Webber, Jackson A Curtis; Charles Bergmann,
R. W. Pressprich A Co.; Clarence W.
Bartow, Drexel A Co.

Raymond Stitzer, White, Weld A Co.; William H. Todd, Kuhn, Loeb
A Co.; Robert H. B. Baldwin, Morgan
Stanley A Co.

Hal

Volume

Thursday, June 14, 1962

Murphy and Edwin L. Beck, Commercial A Financial Chronicle

H.

J.

6168

...

A

Supplement to the Commercial and Financial Chronicle

George Rutherford, Dominion Securities Corporation; Andrew J. Curry, A. E. Ames A Co. Incorporated;
John B. Lewis, John B. Lewis A Co.; Harold W. Davis, Laird, Bissell A Meeds

Stanley

Krusen, Shearson, Hammill A Co.; Hudson B. Lemkau,
Morgan Stanley A Co.; Allen J. Nix, Riter A Co.

Dabney Penick, Reynolds A Co.; Albert C. Purkiss, Walston
Co., Inc.; George R. Waldmann, Mercantile Trust Company

Charles J
Waldmann, Kean, Taylor A Co.; John J. Clapp Jr
R. W. Pressprich A Co.; Charles W.
Buck, U. S. Trust Co. of New York; H. Lawrence Bogert, Jr., Eastman Dillon, Union Securities A
Cd.




Number

A

Edmund

R.

S.

A.

Stanley,

Dickson

A

Co.

Jr., Bowne A Co., Inc.; Edward A. Uhler,
Inc.; E. F. Peet, Burns Bros. A Denton, Inc.

Edward B. de Selding and Allan C. Eustis, Jr., Spencer Trask A Co.

George J. Gillies, A. C. Allyn A Co.; Col. Oliver J. Troster, Troster, Singer A Co.; Mason B.
Starring,
Jr., A. C. Allyn A Co.; Peter B. Stachelberg, Hallgarten A Co.

Volume

195

Number

6168

...

A

Supplement to the Commercial and Financial Chronicle

Percy M. Stewart, Kuhn, Loeb A Co.; John S. Linen; E. Norman Peterson, Equitable
Corporation; Darnall Wallace, Bache A Co.; Craig S. Bartlett, The Manufacturers Hanover

Robert G.

Dillon, Dean Witter A Co.; Wendell R. Erickson, Stone A
Corporation; James D. Topping, J. D. Topping A
Jay E. Thors, Childs Securities Corporation

Webster Securities

Co.;

J.
J.

Paul
A

Milton

Securities
Co.

Brittain, Shear son,
Hodge, Glore,

L. Sipp, Jr., Stern, Lauer A Co.; E. D. Boynton, E. D. Boynton
Co., Inc.; F. Donald Arrowsmith, Von Alstyne, Noel A Co.;
James F. Burns, III, E. F. Hutton A Company

Norman

Bradley Green, Morgan Guaranty Trust Company; Kenneth J. Howard, J. A. Hogle A Co.; Edwin
Dikeman, Jr., Bankers Trust Company; Charles S. Bishop, Manufacturers Hanover Trust Company;
William W. Pevear, Irving Trust Company

Robert

I

'

(3)

Hammill A Co.; 'William M. Cahn, Jr., Halle A Stieglitz;
Forgan A Co.; E. Jansen Hunt, White, Weld A Co.

John

Gerald

T.

Wasserman, Asiel A Co.; David Evans, American Metal Climax;
Emerson, Morgan Stanley A Co.; John C. Glidden,
Stone A Webster Securities Corporation

Sumner

Smith, Merrill Lynch, Pierce, Fenner A Smith Incorporated; Rollin C. Bush, First National
City Bank of New York; Middleton Rose, Laird, Bissell A Meeds; Kenneth A. Kerr,
E. F.

Ralph Hornblower, Jr., Hornblower A Weeks; Avery Rockefeller, Jr., Dominick A Dominick; Allan B.
Bogardus, Watlingj- Lerchen A Co.; Braman B. Adams, Adams A Peck;
Richard C. Egbert, Estabrook A Co.




C.

Trust

Thursday, June 14, 1962

A.

Hutton

A

Company

Don, Granbery, Marache A Co.; Frederick M. Grimshaw, J. R. Williston A Beane; John
Fitterer, Jr., Wertheim A Co.; W. Laud-Brown, Bankers Trust Company
"

C.

(4)

Thursday, June 14,

Volume

1962

Glassmeyer," Blyth & Co., Inc.; Titus W. Fowler, Merrill Lynch, Pierce, Fenner
Incorporated; William R. Caldwell, First Boston Corporation; Justin T. Ottens,
Salomon Brothers & Hutzler; William T. Mclntire, R. S. Dickson & Co., Inc.

Edward

Ernest

W. Borkland, Jr., Tucker, Anthony & R. L. Day; Robert
Powers, Smith, Barney & Co.; Avery Rockefeller, Jr.,
Dominick

&

A.

Dominick

Richard
&

Patrick

B.

&

195

Smith

Watson,

Glore,

Forgan

&

Co.;

Frank

J. Lockwood, A. G.
Dean Witter & Co.;
Incorporated




Lewis

...

A

Supplement to the Commercial and Financial Chronicle

M. Weston, Goldman, Sachs & Co.; Andrew W. Eberstadt, F. Eberstadt & Co.; Henry
Willems, Hornblower & Weeks; Chas. Rendigs, Jr., Bache & Co.; Frank J. Lockwood,
A. G. Becker & Co. Incorporated

Winthrop Pizzini, B. W. Pizzini & Co. Inc.; Gus Phelps, Phelps,
& Co.; Arthur H. Kiendl, Frederick H. Hatch & Co. Inc.;
Benjamin J. Levy, Salomon Brothers & Hutzler

Fenn

E. Boesel, Jr., Hayden, Stone & Co., Inc.; D. Fred Barton, Eastman Dillon, Union Securities
Co.; John Ellis, Eastman Dillon, Union Securities <£ Co.; R. Donald Gibson, Courts <& Co.

Becker & Co., Incorporated; Martin
LeBoutillier,
John P. Garvey, McDonnell & Co.

Number 6168

Francis

J.

Cullum,

W. C. Lang ley &

Co.;

Lee W.

Carroll, Lee

F.

W.

Carroll & Co. (Newark, N. J.) ; Maitland T. Ijams,
W. C. Langley & Co.

Joseph Nugent, Mabon & Co.; Kingsley Mahon, Mabon & Co.; Frank Charles Roder, W. E. Hutton &
Co.; Harold Cook, Spencer Trask & Co.

Philip W. Carow, Jr., Harriman Ripley & Co. Incorporated; John
French, A. C. Allyn & Co.; Robert E. Clark, Caloin Bullock, Ltd.
\

Edward J. Morehouse, Harriman Rioley & Co. Incorporated; Walker
Stevenson, Hemphill, Noyes & Co.; Stephen C. Renyolds, Jr.,
Hemphill, Noyes & Co.

Volume

195

Number 6168

...

A Supplement

to the Commercial and Financial

Chronicle

Thursday, June 14, 1962

(5)

MUNICIPAL BOND CLUB OF NEW YORK
29th Annual Field

Clifton

Alfred S.

E.

C.

Hipkins, Braun, Bosworth & Co., Inc.; John W. De Milhau, Chase Manhattan
R. George LeVind, Blyth & Co., Inc.; Miles
Pelikan, John Nuveen & Co.

Mante, Smith, Barney & Co., Retiring President; R. George
LeVind, Blyth & Co., Inc., Incoming President

Bob

&

Sanford

(New Orleans);

Jerome Burke, Dean

Fulkerson,

Bankers

Harris

Tust

Trust

&

Co.

Company; John
Saving Bank; E.

William

Witter

&

Hattier,

George

Co.

Graham

Clapp, R. W.
A. M. Ccbden,

Pressprich & Co.; Ernest
Kean, Taylor & Co.

Durkin, First National Bank of Chicago
Stafford, Lee Higginson Corporation;
Ira Haupt & Co.

John

Faath, A. C. Allyn & Co.; Walter Niebling, Merrill Lynch, Pierce, Fenner & Smith Incorporated;
Bill McKay, The Blue List; Alfred J. Bianchetti, J. A. Hogle & Co.




Neal

Chester Viale, L. F. Rothschild & Co.; James Reilly,
Goodbody &

Byrne, Phelps, Fenn & Co.; Daniels C. Brasted, Evans & Co. Incorporated; Gilbert
Hattier

Bank;

Day, June 8,1962

Altgelt,

(New York

Harry

Estey, Merrill Lynch, Pierce, Fenner <ft Smith Incorporated; Thomas McEntee,
McEntee & Co., Inc.; James Trippe,
Ladenburg, Thalmann & Co.

City);
Peiser,

Adams,

Lynch, Eastman Dillon, Union Securities <fi Co.; William Mezger, G. C. Haas <fi Co.; Henry
Dahlberg, J. A. Hogle & Co. (Tucson, Ariz.) i Francis Gallagher, Kidder, Peabody <ft Co.
'

Arthur

Alfred

E.

Tonne, Salomon Brothers A Hutzler; Joseph Scherer,

Fox,

Dreyfus

A Co.;

Drake

A

I

.

.

A Supplement to the Commercial and Financial

J. Kenny

Ned Hess, Baehe A Co.; Rick Ott, Weeden A Co.;
Company; Ed Bueltman, Blair A Co. Incorporated

Charles

Murray,

Chronicle

F. Bradford Simpson, Jr., Hallgarten A Co.; Fred D. Stone, Jr.,
of Western Ne«f York; Howard Finney, Jr., Bear, Stearns & Co.

A Co.;

Trust Company

Bill Muller, Halsey, Stuart A Co., Inc.; William G. Carrington, Jr.,
Ira Haupt A Co.

Edwin L. Beck, Commercial A Financial Chronicle; Francis Coleman,
Dempsey-Tegeler & Co., Inc.

Barrington, Harry Downs A Co.; Eugene De Staebler, Eldredge A Co., Inc.;
J. C. L. Tripp, Tripp A Co., Inc.




.

Kenny, /.
Marine

Ted Swick, White, Weld A Co.; John Pilkington, G. H. Walker A Co. (Providence, R. I.);
Sid

Number 6168,

Jack

Guastello, The Bond Buyer; William Moser, James A. Andrews A Co., Inc.;
Robert Wohlforth, Hemphill, Noyes A Co.

Wertheim A Co.; Denton D. Hall, Spencer Trash A Co.

George

Volume 195

Thursday, June 14, 1962

(6)

Walter Von Seggen,Wood, Struthers A Co.; Brenton Harris, The Blue List; Bob Hamilton,
Laidlaw

A

R. E. Crooks, Ferris A Company
Arthur Friend, Folger,

Co.;

Carl Jayson, Robert K.

Wallace

A

Co.

(Washington,D. C.); David Kratzer, Stein Bros. A Boyce (Baltimore)*
Nolan Fleming A Co. Incorporated (Washington, D. C.);
Kennedy, E. F. Hutton A Company

Harold

Volume

Bill

Harding, Coffin

195

Number

6168

...

A

Supplement to the Commercial and Financial Chronicle

Burr (Boston);
Co.

Rollie Morton, The Blue List; William T. King, White, Weld &
(Boston); John Mitchell, Caldwell, Mitchell <ft Trimble

Wendell

Erickson, Stone & Webster Securities Corporation; Andrew
Dott, Malon S. Andrus, Inc.; Russell Dotts, Rambo, Close &
Kerner, Inc. (Philadelphia)

Eugene

G.

Gordon

McMahon,

J.

Laemmel,

Chemical
Ellwood

Bank

C.

Milton

Jamieson, Blyth & Co., Inc.; Willard McNair, Graham-Conway, Co. (Louisville,
Reginald MacArthur, Kenower, MacArthur & Co. (Detroit); Robert Mitchell,
Mitchell, Shetterly <6 Mitchell

Osborne,

Ky.);

Warren

J.

Ruxton,

Bradley

Green,

First

Boston

Morgan

New

Robinson,

George W. Hall, Wm. E. Pollock <£ Co., Inc.; Joseph McCarthy,
Goodbody & Co.

Barth & Co.; John Cowie, Moore, Leonard & Lynch;
C. M. Osborne & Co.; Gene Marx, Bear, Stearns <fi Co.




William

Thursday, June 14, 1962

York

Trust

Penington,

Co.;
Colket

James Musson, Newburger,
& Co.
(Philadelphia)

(7)

Loeb

<ft

Co.;

Vernon Kimball,

R. H. Moulton & Company (San Francisco) ; Frank
Bennett, Cutter, Bennett <ft Co.; Carroll Seward, Yarnall,
Biddle & Co. (Philadelphia)

Corporation; Harry Downs, Harry Downs
Morgan Guaranty Trust Company

Guaranty

Winfield

&

Co.;

Trust Company; Neal Fulkerson, Bankers
Scott, Hayden, Stone <ft Co. Incorporated

Edward

Trust

Warren,

Company

(8)

De Witt

William

Thursday, June 14,

Volume

1962

Hornor, First National City Bank; Marsom Pratt, Estabrook & Co.
Weeden & Co.; Coleman McGovern, First National City

Riley, E. F.

Hutton & Company; Dave
Incorporated (Boston)

Haley, Harkness

&

Edward

Kelly,

Dean
Chase

Whitman, American Securities Corporation; Frank Lynch, Blair & Co.
Courtney Keller, Wertheim & Co.; Dick Hess, Blyth & Co. Inc.




i

A

...

Gilbert White, R.

Supplement to the Commercial and Financial Chronicle

D. White & Co.;

Bob

Incorporated;

Witter

Archibald Galloway, Sykes, Galloway & Dikeman; Robert J. Doty,
A. Andrews & Co., Incorporated

James

Bank

Swinarton, Dean Witter & Co.; Daniel O'Day, Northern Trust Company (New York);
Arnold, White, Weld <£ Co. (Philadelphia); Ed Cross, Roosevelt & Cross Inc.

Philip

Number 6168

(Boston); William Simon,

Hill

Robert

195

&

Manhattan

Co.;

John

John

Senholzi,

Fitterer,

Wertheim

&

Co.;

Thalmann

Bank

Daniel
&

Whitlock,

Ladenburg

Co.

W. O. Melvin, Wertheim & Co.; Paul Wolf, Harris Trust & Saving Bank of Chicago (New York City);
William R. McGill, Wain Wright & Ramsay Inc.; Philip Hiss, First National Bank of Chicago (N. Y. C.)

Albert

Latto,

First

of Michigan

Manhattan

Corporation; William Devlin, Reynolds <ft Co.; John
Bank; Merrill Freeman, Salomon Brothers & Hutzler

Ward,

Chase