Full text of Commercial and Financial Chronicle : June 16, 1960, Vol. 191, No. 5960

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The COMMERCIAL and FINANCIAL

1/J*y 'fyf.
%
ESTABLISHED 1839

foflr. t/. S. Pat, Office

Volume 191

Number 5960

AS WE SEE IT

New York 7, N. Y.,

The latest bid of Governor Rockefeller for the

Repub¬
lican Presidential nomination would appeal to us a great
deal more if the programs he espouses were not at
some
points so New Dealish and at others so uncertain
or unclear in
meaning. Having thus condemned weak¬
nesses in the Governor's manifesto, we gladly add that
at certain other points he has some very heartening ob¬
servations about the needs of the day. We heartily en¬
dorse his stand against "featherbedding or restrictive
practices by labor or management." We certainly would
like to see a revision in tax policies which would en¬
courage investment—although we must say that before
growing enthusiastic about the Governor's proposal to
this effect we should like to hear more specifically how
he would alter present policies.
~

It will be recalled that drastic tax reform

the

"musts"

one

was

dividual income tax. We at this moment have

no reason

that Governor iRockefeller has any such re¬
form as this in mind, and if he does not then much of
the apparent meaning of his suggestion is illusory. The
Governor is rightly critical of any system which permits
our
economy to be "tormented by periodic crises or
clashes that invite solution by political pressure or politi¬
cal expendiency," and is on strong ground when he con¬

to suppose

demns "the kind of surrender to forces of inflation that

marked the

long delayed settlement of the steel strike

year."

'.i

/•'

It is when the Governor

comes

to what he would do

like to do in the way of national policies that doubts,
one after another, arise as to whether,
despite his heart¬
or

ening sentences here and there, he (Continued

page 37)

Cents

Copy

To Meet Future Power Needs
By Charles E. 'Oakes,* Chairman of the Board,

Now, before

we go any further let us
"investor-owned" means as applied

what

Pennsylvania Power & Light Co.

electric

Utility head's appraisal of private electric industry not only
details

upward

dynamic

direction

ahead

but. also

belies

notion, said to be held by some, that the industry is inca¬

pable of fully meeting our futurd power needs.

Mr. Oakes

(1) electricity generated in next 20 years will

points out:

exceed three times that produced since Edison's invention;

(2) nuclear fuel in 15 to 20 years will face real competition
from direct

generation from various sources; and (3) con¬

tinuing pace of pooled capacity and interconnection provides

advantages, new to USSR but not to us, including

many

payment of taxes.
The start of

new

and take stock

decade is
to where

are

and where we

needs
time

in advance

well

the

stock

ers

of the

Edison

are

Electric

Institute

about 3.8 million own¬

investor-owned electric

com¬

panies in the United States—the direct owners of
companies just like yours and mine. But there are
many more people who have a very great financial
interest in

companies.

our

Approximately one-third of the outstanding debt
of America's electric, gas, water, and communica¬
tion facilities is held by the nation's life insurance
companies.
Analysis shows that well over half
of the $16 billion so invested for the 124 million
life insurance policyholders is in electric com¬
pany securities.
Then

there

the

are

than

million

de¬

positors in the savings banks of the country, who
likewise

have

substantial

stake

in the

amounts

their

electric

business

savings

have been
placed in power and light securities.
Millions of
workers whose major support in their old agd will
come from private pension
funds, together with
beneficiaries of trust funds of all kinds, also
a large interest in: the investOr-owned util¬
ities because these trust funds hold substantial

have

amounts of their securities.

to their

customers; conduct re¬
search and development of all

in the nation has

Thus almost everyone
financial interest in the opera¬

tion of the electric companies—the investor-owned
electric companies.

phases of their business in the
public interest; assure efficient
operation and management by
attracting the services of ca¬
pable and well trained men and
women;
contribute their full
share to the support of our gov¬

defense of our

The

define
to the

the

will be re¬
quired; give first-class service
at the lowest practicable price
power

country; support sound regula¬
tion by 7 regulatory bodies at
Federal, state and local levels;

industry.

studies indicate there,

good time to pause

are going.
The investor-owned utilities have the
responsibility to: Furnish an abundant supply of
electricity for use in the areas
they serve; anticipate future

ernment and the

What He Would Do

Price 50

Private Utilities Ready and Able

the

early part of the Eisenhower Ad¬
ministration, and that in 1954 sweeping changes were
made in the law. Whether the present law is better than
the older form we are not in a position to say. What we
do know is that nothing at all was done about the basic
defect in our tax system — the highly progressive in¬

■■last

Thursday, June 16, 1960

The investor-owned
companies are rightfully
proud of the contribution they have made to the
nation's economy.
They have pioneered in the
development of the industry. They have built well.
Through technological improvements and good
management, they have done an outstanding job
in holding down the price of electricity despite

Chas. E. Oakes

the

merit the confi¬
dence of: their customers, the investors in their
securities and the general public; and in every
way, be good citizens.

of inflation that- has swept over our
They; have merited the confidence of
customers, investors and the general public.
wave

country.
The

utilities

power

cannot

develop,

wait

and

for the
(Continued

market
on

for

page

38)

Underwriters and distributors of

STATE, MUNICIPAL AND

PUBLIC UTILITY INDUSTRY ISSUE
U. S. Government,

Public
•

Housing,

State and

BONDS AND NOTES
Dealers in and Distributors
of Securities of

NATIONAL AND GRINDLAYS

Municipal

BANK LIMITED

Securities

Federal Land Banks

STATE

Head Office:

AND

MUNICIPAL

Lester, Ryons

HAnover 2-3700

London Branches

54 PARLIAMENT

CHEMICAL BANK

NEW YORK

Bankers

ST.
to

the

Government

UGANDA,

SOMALILAND

TRUST

COMPANY

BOND DEPARTMENT
30 Broad Street

New York 15

-Members Pacific Coast Exchange

JAMES'S SQUARE, S.W.I.

KENYA,

in:

Offices

ADEN,

ZANZIBAR

PROTECTORATE

Branches

in:

PAKISTAN, CEYLON, BURMA,
TANGANYIKA, ZANZIBAR,
UGANDA, ADEN, SOMALILAND
PROTECTORATE, NORTHERN AND

THE FIRST NATIONAL CITY BANK

INDIA,

SOUTHERN RHODESIA

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

OF NEW YORK

KENYA,

Co.

Members New York Stock Exchange
Associate Member American Stock
Exchange

BONDS

STREET, S.W.I.

683 So. Hope Street, Los Angeles
17,
California

86, BISHOPSGATE, LONDON, E.C.3.
telephone:

PUBLIC HOUSING AGENCY

Inquiries Invited

Southern

California Securities

Bond Dept.

Teletype: NY 1-708

New York Correspondent

—

Pershing A CO.

Federal Intermediate Credit Banks

Federal Home Loan Banks
Banks for Cooperatives

Federal National Mortgage Association
United States Government Insured Merchant

Marine Bonds

and

international Bank for Reconstruction
and Development

(World Bank)
THE

CHASE MANHATTAN
BANK
HAnover 2-6000

Nit Active' Markets Maintained
''

$500,000

MUNICIPAL.

BONDS

To Dealers, Banks and Brokers

City of Montreal

T. L.WATSON &Co.
ESTABLISHED

1832

Members

canadian

New York

Stock Exchange

Commission Orders Executed On All
Canadian Exchanges

Stock

Exchange

BROAD

STREET

NEW YORK 4, NV Y.

Offering by Prospectus

DIRECT WIRES TO MONTREAL AND

TORONTO

•

PERTH AMBOY

MUNICIPAL BOND

Dominion Securities
Grporatioh

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

IMPROVEMENT

Price 99.70 to yield 5.40%

CANADIAN DEPARTMENT

Teletype NY 1-2270

CIVIC

Payable in United States dollars

Block Inquiries Invited

2 BROADWAY
NEW YORK

CALIFORNIA'S

Due June 15, 1980

securities

American

FOR

% % Debentures

1 NORTH LA SALLE ST.

CHICAGO

Associate Member American. Stock Exchange

Exchange Place, New York 5, N. Y.

Tel. WHitehali 4-8161

Tele. NY 1-702-3

DEPARTMENT

BANK OF AMERICA
N.T. & S.A.
SAN FRANCISCO

•

LOS ANGELES

The Security I Like

Brokers, Dealers only

For Banks,

and Financial Chronicle

The Commercial

(2574)

Best..

broad

Contacts through

wilbur y. adams

Partner, Adams-Fastnow Co.

range

our

Members Pacific

Los

adding

trenched
the

York 5

years,

Prod¬

ucts"

branches

serv-

for

picture

economy

1959

was

the Japanese
as a whole.

share.

61 Broadway, New York 6,

come

N. Y.

Telephone: BOwling Green 9-0187
This

not

orders

for

offer

any

signs and some 30%

The remain¬

outright sales.

ing volume comes from the sale
of component parts.
Rental con¬
tracts range from 36 to 60 months.

for

solicitation

derived from the leasing

electrical

from

particular securities

During the term of a lease, "Elec¬

STREET

WALL

NEW YORK

5, N. Y.

SUGAR
Raw

Refined

—

Liquid

—

the

the taxes, and does
many other chores that make for
not only an economically sound
arrangement, but also a pleasant
one.
Through this leasing plan,
the company is building income
for future years. In other words,
the sale this year of a rental con¬
tract (which may bring as high as
$2,000 a month) will result in a
monthly income for the next three
to five years.
Furthermore, be¬
sign,

maintains

Products"

trical

LAMBORN & CO., Inc.

pays

written

all costs have been

cause

Exports—Imports—Futures

off during

renewals

the term of the lease,
be made

can

at¬

tractive and hard to compete with

basis.

the

substantially

sults

this

from

force

the

numbers

now

have

invested

company

salesmen

additional

Now's

training
its

and
over

100.

increased

been reflected

sales
Re¬
sales

new

sales and lease business written in
the

the

of 19.7%

crease

$2,619,153
To

about Commercial Financing
or
Our

Factoring

experienced

credit

specialists will co-operate

fully
your

help

you

solve

firm's working capital

needs.

You

get

plans

flexible

registered in

the

first

and

fast

action at Talcott.
Call
of

our

round

out

its

coverage

sign business, the company in
acquired Arrow Manufactur¬
ing Company of Oakland, Calif.,
producers of thermoplastic sign
faces. Now operated at the Plas¬
tics Division, it produces point-ofpurchase signs and supplies the
parent
company
with
superior
quality plastic sign faces. In ad¬
dition* unrelated industrial fab¬
rication recently has become an
added factor, and could lead to
interesting possibilities. In 1960,

visit any

offices.

division

the
to

150

could

contribute

100

share to earnings.
Products"
designs

"Electrical
and

manufactures

many

the

components used in the operation
of an electrical
sign.
Although
not
visible, such vital pafts as

cathodes, housings, tube supports
and bases, sign rotating units, etc.
1

with
$1,583,231, a

compared
of

Total

2.47-to-l.

year-end amounted
Products

"Electrical

listed

Corp."

the

Pacific

Coast Stock Exchange.

•

ORegon 7-3000

Chicago • Detroit • Boston • Atlanta • Los Angeles

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

Members New

Members American Stock

HAnover 2-0700

harry l. McAllister

Birmingham, Ala
Mobile, Ala.

Direct wires

ture

competitor. In living room furni¬
ture, a newer field for Drexel, the
subject company was second by a
substantial

STOCKS

reputation in the fur¬

niture industry has increased

with
the company's remarkable growth.
Through a dignified and success¬
ful advertising program on a na-t
tional
level, more people than
before

have

Call

Few

companies

Securities Company

products.
supplied the Air
Academy at Colorado
Springs all the dressers and desks
Drexel recently

of New York,

spectacular growth than the
Furniture
Company
of

for the beautiful

Affiliate

and

Tokyo, Japan

now
Brokers

makes cabinets for Motorola tele¬

vision, hi-fi and stereophonic sets.

111

and

bedroom

meet

lines.

its

for

requirements

constantly

BOUGHT

enjoyed

(This is under
as a

L.A. DARLING

C., plant, added a research and
engineering building at' the1 Mor¬
C.,

ganton,- N.

its

employees

manufactured

plant,

stock

Today,
ranks
na¬

tion's finest in
the

manufac¬

turing of qual-

ity

ap-

sales

Harry L. McAllister

pany

Drexel

million

$40

over

several

operates

favorite security

reasons:

sound

ciples, has

the past,

dividend

the

company

business
it has

and has

record

dividend

$1.60.

paid $1.75.
an
enlarged

during

two decades.

shown

excellent

the
.

•

force

strategically
located
throughout
the nation, and with an able and
aggressive management, the com¬
pany stands ready to continue its
pattern of healthy growth.

past

During that
time, net sales increased from $13
million to $40 million, book value

1959

earnings

Exchange
Exchange

Penobscot

from
$14.88 to $32.62
price of the common stock

DETROIT

Building

per

value per share

Branch Office

dividend

Indicated
Net

Bay City, Mich.

POINTS!
INC.

HYDROMETALS

TRADED ASE

(HYD)
On

4/27/60

mended

Triple
42".

Chartcraft

"buy

took

42".

current
For

STOP

3/30/60
32—ulti¬

objective

price
Check

quick

today's

for

paper

says

profits

trading

market

ASE

price.

certain

Figure

objective

profit of 17 points
Another — MICROWAVE

"Buy

—immediate
mate

recom¬

our

days.

ASSOC.

ASE

STOP

formation—price

Top

far

"I
in

Chartcraft

Service
25

way.

un¬

Mr.

service the
my trading

your

years

Point

the

leads

think

stocl^:."
Send
page

$1.0

today

for

textbook land

your

free

week trial

subscription. You won't be sorry.

1.60
Write

working

DE 75

—

17 QUICK

$3.93
32.62

MICH.

26,

WOodward 2-3855

Book

*21.27

capital

Dept. C-l

CHARTCRAFT, INC.
*Less

long-term debt.

Division

1 West

of Business

Reports)

Avenue, Larchmont, N. Y.

Kidder, Peabody Branch
Opens in Milwaukee

increased
and the

1051

best

Pertinent Per Share Financial Data

1949 and 1959.

tween

Stock

Detroit

sales

prin¬

much growth poten¬

tial in the future
in

annual

With

and has

persons

year.

for

Members
Midwest

approximately $30. Indi¬

however, the indicated
dividend was $1.40 and the com¬

proximately 2,600
net

MORELAND & CO.

common

Last year,

large plants,

employs

cated

now

operates

the

(traded

furniture.

The firm

Drexel, N. C.,

in the Over-theCounter Market) of Drexel Fur¬
niture Company is an attractive
commitment for persons interest¬
ed in above average yield along
with capital appreciation possibili¬
ties. The current market price per

chiffo-

the

con¬

plant. The new showroom of ap¬
proximately 40,000 square feet will
enable the company to show its
At its current level,

wash stands

with

and

showroom and of¬

new

entire line for the first time.

dressers,

robes.

SOLD

—

expanding

fice building at the

Drexel

Investment Bankers

Broadway, N. Y. 6 COrtlandt 7-5680

course, is in addition to
high quality living room, dining

Drexel, N. C.
The company was
organized in

and

Yamaichi Securities Co., Ltd.

dormitories

new

quarters,

structed

oak

Inc.

Force

Drexel

write

Yamaichi

operations,
Dickson & Co., Inc., Charlotte, N. C. Drexel completed a million dollar
program last year at the Marion,
Drexel Furniture Co.

and

information

current

know

come

For

Drexel and its fine

room

Chairman, Executive Committee, R. S.

1903

branch offices

our

JAPANESE

margin.

Drexel's

18.2 for the nearest

against

have

NY 1-1557

New Orleans, La. -

its

MILWAUKEE,

Wis.

Kidder,

—

jumped from $10 to $32.

Peabody

Drexel, during that period, ac¬
quired control of Heritage Furni¬
ture and
Morganton
Furniture
which
increased
production
by

branch

Harold H. Emch, Jr. Mr. Emch was
formerly Vice-President of Emch

45%.

& Co.

of this date, the
com¬
plants,
inventory
and
equipment are appraised atl more
than $30 million and current assets

Street

Co.

has

opened '

office at 710 North
under

the

Water

management

'Having**

pany's

are

nearly four times total liabil¬

N. Q. B.

ities.

BOND

Drexel's

position

manufacturing is shown vividly
by the results of an independent
organization which makes
a
survey of brand names every

NEW

OVER-THE-COUNTER

OUTING

INDUSTRIAL STOCK INDEX

IN THIS ISSUE

20-Year Performance of

According to the charts,

dining

room

brand

concioiisr

Drexel stood 57.4% against
13.6% for the nearest competitor.

ness,

Drexel

YORK

PICTURES

research

two years.

CLUB

furniture

was

circumstances to be construed

Candid

photos

taken

Annual Field Day, of the
Club

New

the

35 Industrial Stocks

Bond
FOLDER

York,

appear

REQUEST

52.7 in bedroom furni-

today's

Other Talcott Offices Serving:

Inc.,
(Page 2) %

This, of

NEW YORK
221 Fourth Avenue

Steiner, Rouse & Co

Charlotte,

Co.,

and; officers

growth is the 10-year period be¬

1958

Talcott

1959

$3,135,762, an in¬
as compared with

the

t0 talk

1 '

Harry L.

—

The best illustration of Drexel's

months

quarter of 1959.
-

31,

1960,

three

first

amounting

time...

last

Dec.

$8,488,039.

common

Last year

force

supple¬

some

ratio

■

DIgby 4-2727

Co.

'■

■

Bought—Sold—Quoted

of the company's in¬

About 60%

The Nomura Securities Co., Ltd

assets

liabilities

$10,-

which
generated , net
earnings of $576,424, equal to $2.20
a
share on its sole capitalization
of 262,002
shares of common
stock outstanding.
For 1960, rev¬
enues
should
approximate
$12
million and net is expected to be
in
the neighborhood of $2.40
a

Stock

Monthly

our

quar¬

dividend, is possible.

$3,950,784,

assets

and Arizona.

684,791,

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

current

that

current

Wilbur V. Adams

Total income

Write

stock

were

ingthePaCoast, Nevada

IN JAPAN

an un¬

going

1960, perhaps in the form

current

and

'■,:*?,

r::.

Furniture

McAllister, Chairman of Execu¬
Committee, R. S. Dickson

ever

cific

Opportunities Unlimited

record

The

1929.

Current

has

now

offices

-dividend

ment in

past 48
"Elec¬

trical

Principal Cities

stand¬

and

specifications

indicated

has

vertising signs
for the

CHICAGO

Wires

to provide standards of
construction of electrical
advertising displays, ZEON Corp.
grants licenses only to responsible
companies whose services and fa¬
cilities
conform
to
the
rigid

back

ad¬

SAN FRANCISCO

•

Private

electrical

tive

interest

terly rate is 250 a share, increased
from 200 in 1957.
The President

marketer

Exchange

its

"Electrical Products" has

and

(Page 2)
Drexel

Angeles, Calif.

Fastnow Co., Los

quality

broken

leading

producer

ards.

considera¬

1920

Teletype NY 1-40

•

operating
Established in the public's
licensee

ZEON

tion.

Associate Member

BOSTON

Many of these products are
marketed to other sign makers.
"Electrical
Products"
is
the

■

Adams, Partner, Adams-

bur V.

signs.

ZEON

warrants care¬

Corporation

PHILADELPHIA

country's

ful

120 Broadway, New

greatest
growth area,

New York Hanseatic

WOrth 4-2300

list

its

Products

trical

HANSEATIC."

Stock

inter¬

house

potential" stocks, Elec¬
Corp., firmly en¬

"growth

you're getting
the widest, possible coverage,

American

Corporation

investment

the

ested

sure

Established

Angeles, Calif.

play an important part in reduc¬
ing maintenance costs and adding
to the efficiency of the company's

areas.

wide wire system.

"Call

Coast Stock Exchange

Electrical Products

nation¬

For

To make

Louisiana Securities
Corp.— Wil¬

Products

Electrical

service and

Selections

Their

participate and give their reasons for favoring a particular security.

department offers

reaches

Alabama &

Participants and

advisory field from all sections of the country

in the investment and

Our experienced trading

Trigger-quick

different group of experts

A continuous forum in which, each week, a

HANSEATIC"

Thursday, June 16, 1960

Week's

This

Forum

Call

as an

offer to sell,

solicitation of an offer to' buy, any security referred to

herein.)

Pictorial

Section.

National Quotation Bureau
Incorporated

46 Front Street

Hew York 4, N.

Volume

Number 5960

191

The Commercial and Financial Chronicle

(2575)

Home Electric HeatingCONTENTS

Big Market of the Sixties

CHTEIMIH

B.S.

COMPANY

AND

Articles and News

By Thomas G. Ayers,* Vice-President, Commonwealth Edison Co.

Page

It's All Right
Electric utility industry is
"a

sales

into one."
tum
•

Mr.

—Ira U. Cobleigh__

displayed

—Alan

far toward the goal of the all-electric home and in

coordination between manufacturers and

Ha sees this requiring

side

of the

>—Donald

Power.

you

cat

and

those

stocks.

Obsolete Securities
11
WALL

Regarding Economic Growth

Dept.

STREET, NEW YORK

Telephone: WHitehall 4-6551

—Hon. W. Allen Wallis

ABOUT THE ELECTRIC

electric heat market.

give

for

dog

Down-to-Earth Observations

________

the
need of changing the traditional distributor-dealer-contractor-builder
relationship, and a sales-education marketing program involving
bankers, architects, heating contractors, builders and, of course,
the consumer.
Data are provided on electric-heat's present and
potential future progress, and not neglected is the non-residential
■

—that

Why Electronics Is World's Fastest Growing Industry

utility companies, changing

design and performance of this flexible medium, facing up to

the

Poole

JACK

—....4

Substituting Iron Ore Stocks for Some Steel Stocks

Ayers' concern in general is with the lack of momen¬

particular with the electric heating of homes.

Theatres, Inc.

American Broadcasting—Paramount

taken to task for not aggressively meeting

opportunity greater than all of today's appliances rolled

UTILITY INDUSTRY

mattel, inc.*

Private Utilities Ready and Able to Meet Future Power Needs
To

marketing,

students

many

electric heat is

one

of the greatest

million

expected

the

—Charles E. Oakes

with air

customers. As contrasted

...Cover *

acoustica

Home Electric Heating—Big Market of the Sixties

electric heat must
compete with firmly entrenched
heating devices. So the heating
portion of the climate condition¬
ing market, which is
virtually
inseparable Trom
total
electric
living, has just left the starting

Neither do the

post.

Inevitable

manufactur¬

associates

Does Bank Money Cost Less Than Long-Term Financing?

opportunities ever offered to our
industry. Even so, I do not believe
that
ties

utili¬

fully

ap¬

preciate the
potential this
market offers.

ers.

pliances,

awareness

—Gerard M.

etc.

manufacturers

all-electric

and utilities to

home

Financing Electric Utilities Needs

Power

From

the

Peaceful

Atom

Fairman

american intl.

Essential

bowling

Widening P/E Ratio Spread Between Growth and
-

Non-Growth Electric Utilities—Owen Ely
Management's Primary Role in Assuring Plant Safety

J. Theodore

Adverse

cus¬

baird-atomic, inc.
12

Young..

and

—James

tomer

means

—Harold

potential

utility,

the

;

10
A.

Ives

Timely Advice

some $1,500 more in equipment
sales—wire, cable, switches, ap¬

the

—George T. Conklin, Jr

all-

G. Ayers

Creating Greater Interest in Electric Utility Bonds

in¬

tensify

manufacturer

the

electric home offers the

My objec¬

tive

—Thomas

conditioning,

Wolfe

Effect of REA's

Nation's Balance

sports arena

Sheet

^Prospectus

—Walter T.

opportu¬

using at least 20,000 kilowatthours a year—six times the

Lucking...
Live Better Electrically—Key to Electrifying Sixties

nity andto
stimulate their

present
national
average.
The
projected four million electrically

request

Exciting Possibilities in Electric Industry Research

this

will

kilowatthours

raise some ques¬
electric heat. Indus¬

ideas and

some

about

tions

nearly

—

—Allen

cus¬

Let

begin by looking briefly
indoor climate con¬

if both manufacturers and

really decided to sell!

at the whole

ditioning market of which heating
and cooling are twin components.

One

the

■

Edison Electric Institute Elects New Officers

The Developing World of Trade

and Investment

Olmsted

—George

Harvall

Manpower and Occupational Outlook in the 1960s
—Ewan

DIgby 4-4970

Hermetite

Clague

Servonics

Analysis of Future Trends in the Investment Market
V.

—Curtis

who

ter

Kuile

Systron-Doner*

Electro Refractories!

continued to bear children year in
50 Million Home

Electric

There

electric customers in the country.
Six and

air

half million have room

conditioners.
central

have

about

14%

Another 900,000
or in total,

cooling,

Let's start with manufacturers. •

*Prospectus

As We
Bank

The vista of the electric heating

upwards of 114 million
Electric heating
equipment
sales
grossed about
$100 million last year; in less than
a

envisioned

billion-dollar-a-year industry.

•

tunity?

device was being
outmoded, and there was really
no competition. So we see that the
cooling part' of electric indoor
climate
conditioning,
which
is
more or less separable from total

The number of

electric living, is off to a fast start.
On the other

been great. I

substantial

veloped and improved, but not, I
believe, with the imagination and
boldness required by this market.
Look,

hand, electric heat

customers, while doubling in the

past three years, still number only
600,000. Ten-year projections vary
from 3V2 to 4V2 million, or 6% to

Their products have de¬

measure.

copies
heating uriits
are

base¬
con¬

Wilfred

Prospective
Security

The

have

specialized in

Continued

page

PREFERRED STOCKS

Security

Salesman's
.

i___'

Best

YOU WILL FIND THEM
7

ST., NEW YORK 4, N. Y.

Boston

6
60

Bank &

TELETYPE NY 1-5
Chicago

Schenectady

Glens Falls
Worcester

Quotation

Record
j Copyright 1960 by William B. Dana

COMMERCIAL and

Reg. U. S. Patent Office
B. DANA

Reentered
ary

1942,

25,

Editor

Til

post

office

(Single Copy

135

South

fTelenhone

news

Salle

STate

St.,

2-0613).

Dominion

Canada,

Other Countries,

I
;

Bank

$45.00

This

Quotation

year.

B.
of

—

hound

publication

Write

Monthly,

Postage

extra).

the fluctuations In

of
exchange,
remittances
for
subscriptions and advertisements

be made in New York funds.

will

tions.

year;

i ,

rate

foreign
must

Record

(Foreign

Note—On account of

the

per

$4)

give you the monthly prices
on
all
listed
securities
as
well as those "hard to find"
Over - The - Counter quota¬

$72.00 per year.

Other Publications

and
per

$68.00

—

New

t
Subscriptions in United States, TJ.
Possessions, Territories and Members
Pan-American Union, $65.00 per year;

;

and ad¬
Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
state and city news, etc.)
,

Thursday (general
vertising issue) and every

Office:

the

Febru¬

Subscription Rates

Vice-President

Thursday, June 16, 1960

matter

York, N. Y., under the Act of March 8, 1879.

SEIBERT, President

Every

Other

second-class

COMPANY, Publishers

GEORGE J. MORRISSEY,
WILLIAM DANA

(Only $45 per year)

Company

FINANCIAL CHRONICLE

Newark

QUOTATIONS?

You—By Wallace Streete

Washington and You

Members New York Stock Exchange

Nashville

l__

Tax-Exempt Bond Market—Donald D. Mackey

CLAUDE D. SEIBERT,

Albany

NEED "HARD TO FIND"

Offerings

REctor 2-9570 to 9576

25 BROAD

'"25 Park Place, New York 7, N. Y.

Founded 1868

St. Louis

...

Corner

and

Security I Like

WILLIAM

Spencer Trask & Co.

Los Angeles

The State of Trade and Industry,

The

TELEPHONE HAnover 24300

May

Published Twice Weekly

For many years we

59
_

Securities Now in Registration

The Market

Cleveland
Dallas
Philadelphia

Chicago
San Francisco

Public Utility Securities

•

Direct Wires to

...

inc.

40 Exchange Place, N. Y.

Teletype NY 1-1825 & 14844

and
aesthetic. A unique fea-

ventional

equally

instance,

for

boards—most

Our Reporter on Governments

respondents has

mackie,

HA 2-9000

Bargeron

Funds

Observations—A.

only hope they prove
and reliable in like

NSTA Notes

Manufacturers

News About Banks and Bankers

Favorable Response from the

existing

request

Mutual

seller. Little education was needed
—no

....

Indications of Current Business Activity

a summer

request

Singer, Bean

Cover

r__

Stocks

From Washington Ahead of the News—Carlisle

Now, what has been the manu¬
facturers' response to this oppor¬

been
about

(Editorial)'

Einzig: "Whither British Equities and Rates for Sterling?"

each year.

decade

Insurance

Dealer-Broker Investment Recommendations

ings and
more

See

and

Coming Events in the Investment Field

dwell¬

market is 50 million present

tSpecial Report

major factor
peak
condition to many northern utili¬
ties. The buyer has literally taken
air conditioning away from the
has

in bringing

Regular Features

have air conditioning..

all of this growth has
taken place in
the last decade.
Last year the residential cooling
equipment market grossed about
$800 million, up 17% over the
previous
year.
The
marketing
success
of residential air condi¬

Nearly

tioning

Behalf of Invited Guests

her

50 million residential

are

A Plea

out. When she consulted
doctor, he advised: "For good¬
ness
sake, when you wake up,
get up."
Taking someone else apart - is
always easier than self-analysis.

and year

Customers

Broadway, New York 5

woman

•

friends likened our
toward electric ,heat to

plight

J.F.Reilly&Co.,Inc.

...

of my

attitude

Free Enterprise Job

Electric Utilities to Spend $52 Billion in This Decade

utilities

1
a

King

representatives can evaluate
Such estimates are only aver¬
the ideas in terms of their service ages of the trend-line variety. As
area
or
company better than I. Shirley Gracy of Florida Power
Then, too, I am sure the answers says: "An average is the best of
to the questions will vary con¬
the lousiest and the lousiest of the
siderably among individuals. Fi¬ best." As exciting as these figures
nally, I would like to suggest are to contemplate, they don't be¬
some
avenues
of programming gin to measure where we could go
,

S.
.

try

and action.

...

half, the

electricity
all
residential
tomers- used-la&tryear!

MacDonald

—Philip A. Fleger
Supplying Electric Power Is

heated homes could use 80 billion

T. G. Ayers

to it.
project

response

—R.

•

call:

WILLIAM B. DANA CO.
25 Park Place

New York 7, N. Y.
REctor 2-9570

Financial Chronicle

Commercial and

The
4

. .

Thursday, June 16, I960

(2576)

American Broadcasting-

in Adelaide,

and

So you see

Paramount Theatres, Inc.

and
countries,

Rica

Costa

stations

other Central American

American Broadcast¬

ing-Paramount Pictures, Inc.

•

WILFRED MAY

BY A.

is a
In¬

operation.
attracted
much by the munifi¬

panoramic

quite

•

Australia.

vestor interest has been

Economist

By Dr. Ira U. Cobleigh, Enterprise

here

not so

Theatres, eight

United Paramount

had the nation's largest
of movie playhouses — so

years ago,

chain

the government

large in fact that
rdered
jf

"United

divestment

substantial

in early
1953,
Paramount Theatres was
Then,

same.

event

terrific

has

ABC

Sports,

This season, ABC-TV
will have a $9 million billing to
Gillette
for
broadcasting NCAA
coverage.

football

feature

out¬

and

games

standing prizefights.

viewers

Providing

such

with

merged with American Broadcast¬

diverse

ing to create the present company.
divestment of theatres pro¬

pleasingly reflected at
register.
In 1959 gross
ABC-TV time sales expanded 22%

"The

ceeded, and the proceeds were
happily reinvested in broad¬

attractive video

and

has

fare

been

the

cash

past

"Nobody knows what die
gold basis or gold standard really
is." 'r" •
y,
•'
' x ;
press:

President,
recently
termed
(on a smaller number of
"Choice By Ballyhoo" by Adlai
shares).
This doesn't look like
Stevenson* (himself a very spe¬
progress; but actually represents
cial
type
of "non-Candidate.")
a
consolidation of activities, and
Having gotten past the Primaries
a balancing off of declining thea¬
—castigated as "eye wash" by Mr.
tre revenues against rising TV in¬
Truman—the next major piece of
come.
Now, it appears, a definite
corner
has
been
turned.
First business would be the Party Con¬
ventions.
But undei[ this year's
quarter (1960) per share net was
81c against 53c for the identical strategy, the timing of the candi¬

Cynicism from the Republican

1955

over

casting. The result is that Americ a n
Broadcasting - Paramount

gain among the three
networks for the year).
The time
rates
for
ABC have been sub¬
stantially below those of its com¬

in 1961.

petitors due to its lesser national
coverage
and quite liberal dis¬
counts.
It is expected that these
rates will be increased, based on

common

Side

Another Presidential

Candidate
liberal
Republican Wendell
Wilkie, frankly endorsed the cyn¬
icism due pre-Election statements.
the

During

Committee's
Destroyers for
England Bill on Feb. 11, 1941, he
was
questioned by Senator Nye
about inconsistency of his testi¬

Theatres, Inc., while still the larg¬
est owner of movie theatres (495
theatres in 270 communities in 36
states), has so reoriented its earn¬

ing power that, of $288
lion

million of

earnings in 1959, $179 mil¬

gross

from ABC, and only $91

was

million

from

bal¬

The

theatres.

$24 million, came from mis¬

ance,

cellaneous

sources.

Further, about the theatres, the

has been to retain the
profitable ones, and to sell
marginal units and those proper¬
ties more valuable for some other
program

movies.

showing

for

than

use

property dispositions have
created sizable cash realizations,
and those theatres retained have
These

further benefitted total cash flow

by depreciation charges

which, in

1959, amounted to about $4.2 mil¬
The movie business, in gen¬

lion.

eral, has an upward look based on
some
rise
in
total f". attendance,
more
attractive feature pictures,
the

and
now

total

myriads of "war babies"

coming of age who swell the
of the 15 to 30 age group—

major segment of movie view¬

the

(and popcorn buyers!)

ers

The
ABP
mon

(NYSE symbol for the com¬
stock) is the ABC broadcast¬

This ranks as one of

ing division.

the three nationwide broadcasting

with

networks
and

five

234 network

stations

ABC

affiliates.

growing much faster than its
competitors due to a sales-minded
and aggressive management and
increasingly attractive programs.
Newer
TV
shows, such as the
"Rebel" and "The Untouchables"
is

have caught fire,

while the older

ones,
"77 Sunset
yenne" and "The

have

been able

Strip," "Che¬
Real McCoys"
maintain

high

ratings. Music for the young, and
the not so young, provided by Pat
Boone
and Lawrence Welk
re¬

spectively,
audience
such

Sinatra

commands

and

Bing

the

broad

"specials" with

Crosby

and

"have I pulled"

and the wider audiences
being reached. This will, of course,
improve
profit margins.
Gross
time TV sales gained 20% in the
programs

1960.

first quarter of

ating at

loss but is now on the

upgrade and, quite possibly, may
show some black figures for 1960.
basis

The

expanding

for

earn¬

at ABP does not rest
entirely on theatres and domestic
broadcasting.
There are some in¬
teresting and highly promising in¬
vestments in other fields.
The
ing

power

has a 35% stock interest
publicly owned electronic

company

enterprise, Microwave Associates,

Inc.,

growing factor in micro¬

equipment and radar com¬

wave

Other electronic invest¬

ponents.

Frank

well.

interest

Technical

Operations,

one-third interest in
Dynametrics Corp. a contract en¬
gineering from in the missile field.
These ventures pay no dividends
Inc.,

and

currently but provide an attrac¬
tive growth factor by virtue of
expanding equity in earnings

and market value.

entertainment

other

In
ABP

couldn't

traction
name,

visit);

and

tourist at¬

Florida with

wacky

Weeki-Wachee Spring.

further diversity to
earning power, ABP istn the pub¬
lishing business through owner¬
ship of Prairie Farmer Publishing
Co., putting out three of five lead¬
ing American farm journals. ABP
also owns two record companies,
and has moved into foreign TV
Providing

acquisition

through

interests

The Gutman Letter Is Back

Dis¬

Khrushchev

(which

neyland

fields,
in

interest

35%

owns

With such prospects ABP

writer

$2.

within
not

one

Wall

Street's most popular and

provocative investment
letters, has become associ¬
ated with

us as

Research. We
say

our

Director of

are

happy to

that his weekly com¬

ments

common

are now

statement he had
previously. "Oh,
that was a bit of campaign ora¬
Governor
Rockefeller to elabo¬
tory," was his unabashed and notrate on his program and views
too-shocking explanation.
may or may not be proper.
But,
to assume that this would neces¬
The Public Relations Factor

next two years

the

old

sarily

the

Let us recall the striking "bedynamics in the
is supplied by top fore-and-after" Election contra¬
accompanying
the in¬
Mr. Leonard Gold- dictions
enson
has been President since auguration of the New Deal. Par¬
the merger and is respected
as ticularly blatant was the schism
in one of the most important and
one of the top-flight executives in
ABP

picture
management.

Roosevelt's

Professor

Parker

Willis

York Stock Exchange

Street, New York 5

Telephone:&Owling Green 9-4880

economic matters, before the post¬

arrival

election

the

monetary

magicians). Today's political lead¬
ers

switched

have

reliance

Simon intensively discussed issues of the
high
public
relations
strategy,
Siegel, Financial Vice-Presi¬ 1932 campaign, namely, monetary
master-minded by "Madison Ave¬
dent is a "figure" man par excel¬ policy and inflation.
nue."
"
lence;
and
Oliver
B.
Treyz,
Expounding his "program" on
Surely, then, the value to the
youthful (42) President of ABC- June
30
in
Albany,
Candidate
electorate
of pre-Election state¬
TV has been doing an outstanding
Roosevelt saidj v'Ue£ us have*cour¬
job in programming and the pro¬ age to stop borrowing to meet ments is in the process of being
further reduced.
- , „
duction of advertising revenues.
continuing deficits. Stop the def¬
ABC-TV now sends out about icits.
Let us have equal courage
20% of network TV billings and to reverse the policy of the Re¬
SOUND DIVERSIFICATION
its percentage of the total market publican leaders and insist on a
has been rising steadily.
Total sound currency."
Subsequently,
IN CONSUMER CREDIT
TV gross time billings are running of course, his New Deal permaIn contrast to the proliferating
now at above $625 million a year.
nentized the deficits, and in depth.
the entertainment business.
B.

By 1965, this figure may reach $1
billion.
Thus ABP is very well

placed in
dustry.

rapidly expanding in¬

diversification of industrial enter¬

"Sound
served

the

must

money

all

hazards!"
in

Candidate

1932

pre¬

prises,

declared

coal company taking
manufacturing, or

underwear

Brooklyn

a tire manufacturer
adding space,
on
Nov. 4.
"... The thing has exotic fuels, and amusement busi¬
Capitalization of ABP is uncom¬ been said three times in my
nesses,
with the accompaniment
plicated—56.8 million in long term speeches.
It is
stated without of some skepticism, the vast extent
debt, $1.5 million in 5% preferred qualification in the platform, and of
the commercial banks' "diver¬
and 4,149,362 shares of common I have announced
my unqualified
sifying" with customer credit goes
listed on NYSE. Working capital
acceptance of that platform."
on
largely unrealized. No doubt
was $52 million at the 1959 yearSome attempts have been made
the casualness of the public's ob¬
end.
to justify the subsequent dollar-*
servation of such credit services

There

doubt

that motion

picture theatre business has been
relatively unattractive in the past
decade. In the ABP situation you
can

juggling

gent long-range program of grad¬
property
resources into assets with greater
ual conversion of theatre

forward

motion and higher earn¬

nostrums

invoked

successfully

President

Roosevelt,

stretched

The

standard

record

cannot

tionalized.

In his

the

even

Expansion by the Banks

gold

First

ra¬

vestment
dustries

and

in- i

Brooklyn Acad¬

ities

emy of Music speech on Nov. 4,
the Candidate epitomized his un¬

growing in¬
sense,
then per¬

rapidly

makes

deserves

your

closer

some

the
been

libel

months

gold

standard.

This,
clearly shown since,

the

credit

the

look

this

credit

area.

quanti¬
banks' activ¬
Total install¬

at the

outstanding

created

by all holders, has risen from $4.5
billion in 1939 to $39.7 billion now.
Of

this,

the

amounts

commercial

banks

going into
increased

$1 billion to $15.1 billion,
a

rise

about

against

only $10.3 billion from
the
same
amount at the

earlier period.

Of' the"increase

has

was

ment

from-going off

ago

let

tative growth of the

It would appear that equivocal commitment to the gold
this program has now reached a standard
thus, "the business men
stage where earnings can move of the country, battling hard to
ahead into a new order of magni¬ maintain their
solvency were told
tude; and a higher conversion rate in blunt language in Des Moines,
for gross into net can reasonably Iowa
(by President Hoover) how
be expected. If good management, close an
escape the country had

diversification

partly attributable to their ob¬

vious appropriateness.

them
under
a
"sound currency" um¬

ing power.

prudent

bringing

perceive, however, an intelli¬ brella.

total

out¬

standing installment debt by $35
billion since 1945, 38% has taken
place in the commercial banks,

United

States."

compared with 28% in the sales
days after taking office, finance
companies, 10% in other
Roosevelt, on March 6,
financing units, 12% through re¬
1933, ordered the suspension of re¬ tail
outlets, and 8% through credit
demption, taking us off the gold
unions, and 2% by others.
Three

President

Cooley & Co. to
Admit Partners

*In

Cooley &
Co., 100 Pearl St., members of the
HARTFORD, Conn.
New

Stock

York

"This

Week"

Magazine,

Feb.

1960.

—

Exchange,

The above data

28,

demonstrate the

growing importance to the

July 1 will admit Norman W.
Spencer and Leo V. Dubey to

partnership.

Announce the Removal
of Their Office,

Goodbody & Co.

STEARNS & CO.
72 Wall

demagoguery or on issues, the ad¬
of
technical
experts
(as
dependence
on
the
sound Senator Carter Glass and

vice

the

were
pretty
much
with good old-fashioned

bound up

"Bef ore -and - After "

90 Broad

To Admit Two
New

statements

available to

clients.

Members

In the earlier days, pre-Election

policies

would

incredible.

seem

serve

torate

months

made

was

Gutman,

the

with

mony

inform the elec¬
that will
actually emanate from the White
A return to that distribution House next January, is naive.
Paramount

ABP
inspection.

Walter

quite

1952, the regular rate on the
United

haps

attracted

has

following.
It now sells
around 37 with a $1 dividend that
will no doubt be increased.
Before
market

Much

radio, ABC owns six stations
with 354 affiliated network sta¬
tions. This division has been oper¬
In

ments include ownership of a 21%

motion

forward

real

expanding popularity of ABC

the

1959

alysts

Senate

Hearings

dates' and draftees' statements on
period; and competent an¬
the issues is being made the ma¬
have projected per share
net for the full year at around jor item of public controversy.
The call on candidate Nixon by
$2.50; and possibly as high as $4

195§ (the largest percentage
dollar

by this
given to the

rationalization

neat

most

and

accompanied

standard;

THE DEMOCRATIC
earnings, as the
PROCESS
promise for the future. Including
capital gains, the net per share for
Merrily onward goes the "demo¬
1959 was $1.92, exactly one cent
cratic
process"
of choosing a
more
than the $1.91 reported for
of

cence

of this enterprise and its profitable
progression from tired theatres to lively television.

Viewing the substantial growth

Co., 2 Broadway,
New York City, members of the
&

Goodbody
New

York

Stock

Exchange,

Larger Offices at
80 PINE

July 1 will admit Joseph B. Binford

and

Joseph

partnership.

Neil, Jr.

from

Street, New York 4, N. Y.

New

STREET

NEW YORK 5,

N. Y.

Telephone Number: DIgby 4-7890

banks

Volume 191

Number 5960

of this kind of
credit. Further diversification for the banks

The Commercial and

Financial Chronicle

(2577)

has
the
qualitatively via the kinds of past - decade;- premiums written
borrowers. Whereas, the consumer
now amount to $438 million, total
debt
instrumentality in the "good assets to $678 million, and net inold days" was
largely confined to come to $35 million (this profit
the automobile
buyer; now, in the figure of the insurance division
words of the
current "Bulletin" of alone exceeding the entire profits
the
Federal
Reserve
Bank
of of
the
country's second largest
Philadelphia, far from limiting mail order-retail company),
time-purchasing to "durables," the
consumer today can
eat, sleep and Stock Market Versus Cons
comes

even

life

been

about

Its
growth
eight-fold over

now.

„

travel via airline

People

...

"on the cuff."

Debt

has

become

Credit

The Debt Increase

the

uring

installment
more
as

long-term

period
increased

debt

has

rapidly than consumer debt
whole; and also more than

total

consumer

tributed

income. This is at-

the

larger proportion

young adults getting
and their starting of

married,
families, to

increased
terms
terms

workers'

incomes

of
of

rmrphasino- nnwpr
purchasing power, to tv,p
the
swing to urban, non-farm occupa-

tions,

suburbanization;

all

furniture ^
finanppahlp

phasis is placed on the personal
hnrrnwpr*
qualifications
of
the
borrower,
the

while

cmnHc

Alcn

investor

borrowers,

reported

the

F.R.B.) to borrow despite their
holdings of the needed cash; as
their

"hocking" insurance

Policies.
the

ratio

used to buy goods, as a
of income is

credit

percentage

remaining steady at
1
-

l^^i.

•

,h,lghs'

creases

concentrated

are

the

attitude is
to

This ap-

more similar.
——

endorsed

by the Re-

explanation of the
of
margin
require-

regulation
mpnt,

"Since

flow

the

t'be

stock

market

fiuctuate

with

general

into

ron^tions

Wlth ,ln"

usually correlated

actions

1959
JLOnJO

affect

that

availability "

credit

general

Annuai

Report

minuai

Diversification

financing

margin

will

cnppifip

it«?

broaden

the

XI.

IT.

•

floated

and

whic

closeby

new

the
let the

though

re-

opera-

money

tions

before

holders

—

again making offers

Government

issues,

rphis brings about uncertainty

1*1

and,

issues

Pvnlanatinn<;

tha

the

Rnarri

Board

^ J^ward refunding by tne
,J'.

long

The

had

market

money

prevail

1964

the --— due Nov.
2V2S
—

15,

1961.

issu

From
^
it

pvtpnd

the
rP.
re-

inducement

the

form

rear

of much

the

appeared

the

Wav

ntl

negative
ally

brought

about

ir»
in

gained

momentum

refunded

the

Treasury

the

have
in its
in

these

1L.

lowering

so.

thing like large scale purchases,
The most distant issues—those in
*he real bond classification—have
made
limited
progress
largely
through state pension fund pur-

fbp

Central

that

the

has

as-

r»0licv

policy

of the

chases but there
^ ^ be

purchases

are no indications
foUowed by sizeable

intproo,

ratp

since

there
"

interest rate

are

th6

There has been considerable dis- trend would be very helpful to the
The sharp up-trend in prices
sharp up-trend in j
more
cussion about "forward refunding" Treasury in "forward refundings" of commo^l stocks has taken
there

and

what

the

was
no
financial

ijeved it would
tbe

Treasury,
the

future.
rate

question

but

provided

district

be-

ment

but
The
level

some

fact

time

that

the

4^4%

for

the
1

make

necessary induceit is there.
'1

xl"

than

bit of 't.he V\An^1Vlff
glamor

away
bearing securi¬
reported that quite a
mnnmn

from fixed-income

ties.

be carried out by

Success Indicated

few positions in short-term Govoffer by the Treasury to ernments have been liquidated
take care of part of the Nov. 15, and the proceeds put into equities.

The

Q-fiv

(Special to the financial chronicle)

ST.

Stix & Co., 509 Olive St., members

receivables

through

buck Acceptance

offerings

Sears

Roebuck

subsidiary, Sears Roeof

Corporation, via

Mr.

short-term

(now

totalling

About

quarter

the

Ward,

also

now

"post

selling

Exchange,

formerly

was

Corp. Bond Traders Elect

The

installment

Corporation^
of
New

Association

Sears insurance business
represents an enormous amount of di-

elected the following new

f°r the ensuing

versification, also in the financial
Its

pany

has become

Allstate

insurance

Insurance
a

Com-

F. S.

dent,
Co.

including

ARE

York

*6?0-19*°

has

officers

year,

President, John F. McCormack,

multiple line

company,

vice-

he had been as-

accounts.

area.

J**1**,

with

sociated for many years,

parent

Avery"

its

Morris

Inc. with which

companies' customers' installment
accounts are so financed. Montgomery

Stock

Midwest

President of Taussig, Day & Co.,

notes,
million).

$158

the

Smithers &

Fred

Co.; Vice-Presi-

R. Eisele, Freeman &

Our

9 Qth ANNIVERSARY YEAR

PLEASED TO ANNOUNCE

THE

FORMATION

MUNICIPAL
AND

BOND

THE

OF A

Commemorating this event,

DEPARTMENT

have just published

"A TEN YEAR INVESTMENT FORECAST

ASSOCIATION OF

M. A. HAGBERG AS

1960-1970"
MANAGER

AND

This research work examines the

BUCHANAN, JR.
.

■

MERRILL

background for

MORONG

.'AS

investment
cusses

opportunities in the next decade and dis¬

nine industries

likely to show superior growth.

REPRESENTATIVES

WALKER, AUSTIN & WAGGENER
INVESTMENT SECURITIES
REPUBLIC NATIONAL BANK BUILDING

Dominick & Dominick
Members New

naciremA,kroY Stock Exchanges
and Toronto

PALLAS 1, TEXAS
EFFECTIVE

14 WALL STREET, NEW YORK 5
JUNE

15, 1960

n°n"

The

J 01X1S k) tlX \J\)»

LOUIS, Mo.—Howard P.
ris has become associated

Federal fields.

lVlUIIlO

Diversification in another channel is instanced in the
financing

gone

addition, there have been somewhat increased commitments in
the intermediate-term obligations

ditions with the passage of time.

have
1

year

and this crced. dcon_

^utrality

but

mainly into short-term issues. In

but these have not assumed any-

Board

least

fumed

curities

evidence
■Rp„erve

lowering of the Central
Bank rate has brought some additional funds into Government se-

size
size

Long Bonds in Doldrums
The

next
in

will

successful

have

which

jPfirpnt,p

the

down

the

and

■-

may

Treasury

cut

issues

re-

•

recently

the

•

reduction

rate

spurred

excess

-i

rpi,„

rlpplinA
decline

the

of
member
system and eventq-

the

refunding"
offer
though it would

undertaking.

reserves

which
start

beyond question the figures to be

sure,

ctortoH
Which started wi+V»
with

too

the

the action of the
monetary
authorities
to
ease
money
and
credit
conditions

banks

the

pavine-

«forward

prove
_

indications

available

published

higher rates,

sense,

he no ball of fire and the guesses
which were being made were not
optimistic.
However,
it
subse-

some

3%g

holders of

note made

above were not attracted
much by either the 3%s or

were

satisfied with

were

maturity, this exchange for

especially from the tax angle. On
the other hand, the holders of the
2^s w^° bought them at 100 or

near-term

been

maturity mi nToOO^
matunprjju.iH.uuu,

maturity date by a «fnrwnrd
forward
funding" unless there is a

looking

evident that

.®

it d
not going to be
way of a

for at least a short
breathing spell but the Treasury
took advantage of the lull in
operations by making a forward

unce

discount

Refunding" Offer

n
In addition

drive

"Forward

large

any

unding» by the

certain
Xhe

looked

was

fwerrent to

serves'"and"

obob-

figations

interest

IV/T^-p-ma

upon

not

was

pA„rp-q

continues
Treasury
Treasury

investment

short-term
short-term

into

•

for

long-ter
uPP®d

bond, however,

bank's

credit stake.

consumer

below 100 and

nWitfntinn<!

„

sur-

"—

000)
—/

requirements,

indirectly further in-

and

been

funding

Commercial Credit Company, following C.I.T.'s alignment abroad
with
American
Express.
These
crease

have

t,in that large
^^'"1

includes attention to the Prme
level and inflationary psychology.

providing
exporters, has

is not going to
digest the issues

market

the

oara 01 ijoveriiors.
Board of Governors.

AnH

abroad

much

appears

fmanc

Treasury

business

changes in margin re-

au^rements
S.dJ ^olicy
the
L11C

tends

been announced this
week, by the

moves

the

took

pretty

COmmumty

prise.

refundi

advance

whlch

offer

credit

of its raising and lowering of the

the

with

extensions.

Transatlantic

raising

money

Board's

serve

probable in personal loan

Expansion

new

operati0n which will have to be
unciertaken in the next fortnight,
or
s0> the Treasury came along

In its overall policies covering are" available
the two credit areas, the Boards fixed income

are

Currently,

speculator-

the

borrowing is the stated wish
individuals (one-third of

of many
the

well

govern-

face

some instances, creates confuliquid collateral. (In this connec- s-[on jn the
money markets.
tion, SEC Regional Administrator
Tbe positive reserve position of
Windel's plea for greater attenmember banks, together with the
tion
0
to
the
borrower
by
the
junexpected decline in loans in
margin
l-eXienuing
DrOKer,
fn(ia
tav
a
^
face of income tax navmpnt? has
payments, has
before the Association of Customimparted an easier tone to the
ers' Brokers last week, is
money markets.
In spite of this
esting).
trend, the bulk of the funds which

nnnfriK.

'
.

uting to this increased shift from
such

criteria

lending

ing

CHIPPENDALE, JR.

the 3%%

•1

credit extension the em-

consumer

37/g%

Out

to be a pretty good
proposition with the note getting
the major part of the
play. To
those owners of the 2V2 % of Nov.
15, 1961, who had acquired them
a

and

turned

Interesting
discussion, mostly
way of informal, of the nature of credit
life." The new areas
further en- going into the stock market and
larging the "diversification" now to consumer debt, along with some
include "retail" credit extensions of the
foregoing questions, took
by the banks running the
gamut place
at the
Consumer Credit
from
clothing purchases to pack- Management Program at Ardei
aged vacations—with competition House in
Harriman, N. Y. las
likely to spur this further.
week. The consensus held that in
debt.

note

„mn,

geT out

go into debt to

1961
maturity through the ex¬
change of these 2t^s for a 3%%

Our Reporter on

BY JOHN

issue

TAX-EXEMPT BOND MARKET

opening
Also

Federal

New

the

York

and

seven

Bank

Reserve

fleet

rate

count

[Of

bond

the

from

served

system

invigorate

market.

banks

reserve

was

the

serve

recent

ap-

new

this

issue

June

s e v e r a

14,

positive

several, im-

portant items were up for cornpetitive bidding. The Commonsegments of the economy, includ-' wealth
of Kentucky asked for
ing lower commercial loan fig- bids on $30,000,000 serial bonds
in

of money

Offer

Seen

Successful

unique advance
slowed down the

plan

general improvement in the

offer may not fulfill the suggested
limits for each offering, it seems

likely

that

holders

1961

tial

volume.

ment

Should

bond

the

;

the

market

second

the

gain at its present tempo, the attraction becomes more impelling.
The tax-exempt bond
market,
following the new leadership set
by Treasury issues, continued the

the

4.20%.
ket

highest yield is less than

The

has

municipal

followed

bond

this

mar-

about

exempts

higber

point

one

the

against

considerably

rise for

average

tax

Treasury

bonds.
,

icated

However,
issue
now

aggressive

new

bidding for municipals that
prevails,
presages
a
con-

siderable
bond

the

rise

market

future.

new

the

municipal

and

the

issue

very

near

pricing be-

and

the

totals however, is close

associates

circumstances.

according
about

ne¬

The

the

street

float,
List," is
Although

"Blue

$307,000,000.

it is.

con¬

siderably lighter than the average

volume

sue

exempts

favorable.

has

than

tax

for

last

generally well

been

lighter
it

and

has

this
been

distributed. As

positive factor of tremen¬
impact, thp Federal bond
market has been
the
object of
continuing official attention bene¬
dous

fiting the entire bond market.
Dollar Bonds Moving Upward

last

reporting

June

the

Smith,

Barney & Co. turnpike
yield Index was 3.96%. The

bond
week

Since

Chase

rise

Index'

the

June

issues

wit:

lave

was

one-half

many

chalked

Illinois

point.
individual

Toll

gains, to
87, up

3%s

1%;

Kentucky Turnpike 3.40s at
91, up 1; Pennsylvania Turnpike

MARKET ON REPRESENTATIVE
SERIAL ISSUES

California

(State)
Connecticut (State)
New Jersey Highway
Auth., Gtd.__
New York (State)
Pennsylvania (State)

Vermont (State)
New

Calif

3%%

1978-1980

Bid

3.90%

1980-1982

3.50%

3.35%

1978-1980

3.45%

3 30%

1978-1979

3.15%

3.00%

3%%

1974-1975

3.20%

3.05%

1978-1979

3.25%

3.10%

31/2%

1977-1980

3.50%

3.35%

3.85%

3.70%

3%%

1978-1980'

Baltimore, Md
Cincinnati, Ohio
New Orleans, La.—

3Vi%
3i/2%
3y4%

i980

3.55%

3.40%

i980

3.35%

3.25%

i979

Chicago 111
New York
City, N. Y

3 60%

3.45 %

3y4%

1977

1980

—

84%;-up V>; Kansas Turn¬
pike 3%s at 77%, up y2; and
Texas Turnpike 2%s at 80, up 1.
At present/ most of these issues
are
in small supply and markets
are consequently thin.

3.75%

3%%
3%

3.75%
-

3.60%

3.90%

3.85%

June 15, 1960
Index=3.396%

New Additions to
.

Important

state

new

nicipal issues

added

week

and

include:

000,000 Dallas,

$13,487,000

Texas

(1961-1930)

LOCAL STOCKS

com¬

Mary¬

school

dis¬

June

30;

(1961-

1980)

for July 6; $37,000,000 Chi¬

cago,

Illinois (1962-1979) for July

7, and many of less size and im¬
portance.

There

are

further

negotiated type issues for nearby

offering
State

other

Power

than

New

JAckson 1-0316

under

offering continues

discussion.

generally

;good bond market, with the focus
on

tax

exempts,

prospect.

a.m.

11:00 a.m.

1962-1980

10:00

1961-1980'

2,000,000
13,487,000
2,750,000
4,925,000
Authority 100,000,000

offering by Dillon, Read & Co., Inc.,
& Co., and W. H. Morten & Co., Inc.

Kuhn, Lceb

Norfolk, Virginia
Ohio

continues

a.m.

7:00 p.m.

1963-1975

11:30

a.m.

7:30 p.m.

2006

Halsey,

9,000,000
15,000,000

10:30a~m.

1961-1980

Stuart

Co.

1961-1985

11:00

1960-1970

Noon

Inc.,
a.m.
„

Croville-Wyandotte Irrigation

62,000,000

1966-2010

11:00 a.m.

1,750,000
1,418,000
3,080,000
1,132,000

District, California
High Sch. D., Calif.

1961-1975

11:00

Oxnard Union

Passaic,

New

Jersey_____

...

Faterson, New Jersey...—__^—
West Orange, New Jersey.
June 22
Albany,

;

State

College

2,508,000

1961-1980

12:30 p.m.

1961-1980

10:00 a.m.

2,538,000

1961-1990

3:00 p.m.

Jl,050,000

1961-1990

2:15 p.m.

20,000,000
3,000,000

1961-1975

11:00

a.m.

1963-1986

11:00

a.m.

1962-1999

10:30 a.m.

2,500,000

1962-1979

8:00 p.m.

Ken¬

Santa

Connecticut,.

■■■•*';

—

Manatee

County,

June 23 (Thursday)
a.m.

11:00

a.m.

1962-2000

10:00

a.m.

1,000,000

1961-1980

1,125,000
1,370,000
2,200,000

1961-1999

(Tuesday)

...

Columbia

County, Wisconsin
Escondido, California
Fayetteville, North Carolina..
Marion County, Florida
Victoria County, County
Navigation

11:00

.1,100,000
2,500,000

June 28

California

1963-1984
1962-1989

93,000,000

Florida

Cruz,v California
•

•

District,

Texas.
1,500,000
June 29 (Wednesday)
Florida Development Comm., Fla.
>16,800,000
Louisiana State Univer., Louisiana
6,500,000
Pennsylvania State Public School
Building

8:15 p.m.

<6,600,000

I
...

Waterbury,

1961-1990
1961-1980

1,950,000

York

New

Morehead

a.m.

1961-1990

(Wednesday)

Anaheim, California
Fastchester, New York
Greenburgh Union Free School
District No.- 3, New York..
Maryland State Roads Commission,
Maryland
Miami, Florida

Author.,

Pennsylvania

25,260,000

Silver Creek Sch. Bldg. Corp., Ind.

1961-1979

11:00

a.m.

1962-1985

9:30

a.m.

1961-1985*

1:30 p.m.

1965-1990

11:00

a.m.

1962-1983

11:00

a.m.

1960-1999

Noon

2:00 p.m.

.1,660,000

Dallas Ind. Sch.
El

Paso,

Paso

Dist., Texas

School

North East Ind.

'8:00 p.m.

>15,000,000

Texas
Ind.

Dist., Texas
Sch. Dist., Texas.

3,000,000
6,000,000
1,000,000

1961-1984-

8:00 p.m.

July 5 (Tuesday)
Alameda
Water

Co.

Flood

Conservation

Control

and

Dist., Calif.

;2,250,000

1961-1990

10:00 a.m.

July 6 (Wednesday)
Charlotte County Special Tax
School

District

Carolina

No.

1, Florida..

_________

Salt

River

District, La—
Project
Agricultural

Imp. & Power District, Arizona

1,000,000
10,695,000
1,500,000

1962-1982

11:00 a.m.

1961-1970.

11:00 a.m.

19,000,000

1963-1992

11:00 a.m.

July 7 (Thursday)
Chicago,
St.

Illinois

Petersburg,

10:00 a.m.

37,000,000
5,000,000

Florida

July 12 (Tuesday
Anne

Arundel

Anne

Arundel

County, Maryland.
County Sanitary

Commission, Maryland
Ball State Teachers

Denton,

*4,400,000
2,500,000

Texas

Escanaba Area Sch.

_____

Dist., Michigan

New Orleans, Louisiana...
Santa Clara
County, California

Eugene,

9,750,000

College of

Indiana, Indiana

1962-1989

10:00 a.m.

2,300,000
2,800,000
6,200,000

1962-1990

10:30 a.m.

1961-1989

8:00 p.m.

1962-1990

10:00 a.m.

11,498,000

1961-1985

11:00 a.m.

1961-1980

8:00 p.m.

July 19 (Tuesday)
Oregon

____

25,000,000

July 20 (Wednesday)
Bernards

Los

Township Sch. Dist., N. J.

1,532,000

Sept. 8 (Thursday)
Angeles, California

4,000 000

■'

Sent. 14
(Wednesday)
Greenwood Metro. Sewer
District,
Carolina

1,000,000

•

2:00 p.m. •
7:30 p.m.;

June 30 (Thursday)

South

a.m.

1961-1970

*Negotiated

York

Authority scheduled

Tunnel District

ATLANTA 3, GEORGIA

11:00

1960-1997

for June 21. The Chesapeake
Bay

RHODES-HAVERTY BLDG.

1962-1980

1,250,000

Orleans Levee

mu¬

the

$10,695,000 North Carolina

CORPORATE BONDS

a.m.

1961-1985

Jersey City, New Jersey..
Maryland
Milford, Connecticut

(1963-1975) for June 21; $15,-

J ESTABLISHED 1894b

MUNICIPAL BONDS

11:00

1,800,000
3,600,000
1,576,000

...

Tennessee

petitive schedule during the past

land

1961-1976

(Tuesday)

1961-1980

North

Calendar

trict

STATE AND

County,

3.i0s at

Asked

3%%

—.

Housing Auth. (N. Y., N. Y.)

Los Angeles

Maturity

5,000,000

——

Chula Vista, California

3.99%. This represents an average
dollar

District;

3:30 p.m.
3:00 p.m.

50,000,000

added

1962-1973
1961-1980

1,500,000
1,650,000

Alabama

is¬

New

a.m.

(Monday)

tucky, Ky

demand

considered

year

Manhattan
just nosing out the
F. S. Smithers & Co.
group.
The

Rate

School

County

June 21

for the year.

The

1,308,000

210, Arizona.

Co.

June

about

heavier than last week,

and, at the close

Co.

due

ago

volume, although moder¬
ately heavy, poses no threat to
an orderly market under existing

aggressive bidding last
Tuesday was $10,000,000
Philadelphia, Pennsylvania school district bonds (1962-1985).
Here, too,
the bidding was
seriously competitive, with the account headed
&

The

21. This

of the order period, about $7,500,000 was reported in account,

by Drexel

week

to
heavy volume of awards this
was

Authority issue to be
gotiated by Dillon, Read &

Another important new issue that
1M

since

Power

attracted

•

Higher Municipal Market

calendar

$750,000,000;
including
the
$100,000,000
New
York
State

to 3.60%

added

Milwaukee,-Wisconsin awarded
$15,000,000 water - revenue bonds

2.25%

issue

new

week.

pattern,

for

Maricopa

10:00

...

___;

*New York State Power

been

week, although the schedule
of today is not much heavier

than

(1961-1990)
to
Drexel. &
Co.,
albeit
much
less
spectacularly. Glore, Forgan & Co. and associThe
Commercial
and
Financial ates. The bidding was very close,
Chronicle's
average- yield
Index with Halsey, Stuart & Co., Lehfor high
grade bonds has gone man Brothers, Smith, Barney &
from 3.45%
on
May 11, 1960 to Co.
and
others
furnishing
the
3.396%
as
calculated
yesterday, sharp competition. The issue was
This indicates an
average dollar" reoffered at prices to yield from
rise

the

Manitowoc, Wisconsin

a.m.

(Friday)

Colorado—

College,

3:30 p.m.

11:00

Nashville, Tennessee

fairly good.

last

Barney & Co., Lehman Brothers,
gradual rise that had been briefly JJ.r J x
,a
Barriman
interrupted a few weeks back. As RJPley & Co. The bonds were ofrecently as the middle of May
mv0enn°^S ? P™C,$S ?
more
than 40 different issues of
from 2.70% to 4.00%. A
Treasury .bonds
yielded
better
reception is reported for
than
4%
and
some
of
them thls lar^?' special motor vehicle
yielded close to 41/2%. Currently, revenue issu^^with a balance of
only 12 issues yield 4% or more a^out ■ $9,000,000 at this writing,
and

3.90%.

membership. The only other bid.ding group was led by Smith,

bonds

The

yield from 2.50%
Investor
reception is

Sizable issues have

won

bidder.

1971-1990
1961-1977

Evansville School Corp., Indiana.-

The

Big Week Ahead

by
the group
headed by Blyth & Co., Halsey,
Stuart & Co., First of Michigan
Corp. and including a national
was

Rico.

priced to

reported

Another important state offer-

bonds

govern-

continue

general

ing, $25,000,000 State of Michigan,
Trunk Highway
(1981 - 1985)

2Y>s

the

market

2,000,000
2,550,000
1,800;000

11:00 a.m.
9:00 a.m.

Agricultural and

public
obligation

was

3.00%,

Fort Lewis

improvement
Asheboro, North Carolina
bonds.
The Broward
County, Florida
City Bank account Carter

(1961-1980)

were

bidder for $17,000,000 serial

high

Bank

National

2.40%

In¬

Noon

1961-1980

1,000,000

—

June 20

1985

28,880,000

Bayonne Housing Authority, N. J.
Connecticut

Well

15)

Puerto

First

from

amount

Chase Manhattan Bank group was

formance.

accede in substan-

may

was very

yield

list, skepticism regarding it has been largely dispelled and, although the exchange

due

came

instance

account reports an unsold balance
of about half the issue. In view
of the market's splurge of
strength, this seems a good per-

gov-

bond

ernment

Bidding

(June

close, with the Halsey, Stuart &
Co. group runner-up. Scaled to

an-

nouncement of its

refunding

Manhattan

the award.

won

the '' Treasury

Although

Chase

Going

borrower

Savings Bank, Northern Trust
and

Ricos

Yesterday

Co.

was

teresting and perhaps underrated

the

and

the following tabulations we list the bond issues of
$1,000,000 or more for which specific sale dates have been set.

Mechanical

in eir-

Treasury's Advance Refunding

$3,400,000.^,

closing

Puerto

(1962-1971) for highway, bridge
and tunnel purposes. The group
culation, and the general dip- in headed
by
the
First National
consumer
spending.
>
'* ->
Bank of Chicago,> Harris Trust
decline

recent

the

ures,

Stone and
Corp., F. S.

Co.,

Securities

Tuesday's

parently based upon the lowered
momentum
in
some
important

relative volume

Larger Issues Scheduled For Sale
In

Moseley & Co. and associates were Honolulu, Ha^iii:::—the high bidders. The bonds were
Newburgh City School Dist., N. Y.
priced to yield from 2.30%
to University of Tennessee, Tenn
3.45%. The reported balance at
June 17

will

bidding.

obligations

whose

Fenn

Webster

issues

new

indicate

surge in
Tuesday,

action

The

rise,

Comment concerning
of

city

Phelps,

sections

all

sharp

Thursday, June 16, 1960

Information, where available, includes name of borrower3
of issue, maturity scale, and hour at which bids
bidding,, borrowed $5,633,000 by will be opened.
means
of serial bonds (1961-90).
June 16 (Thursday)

R(,ccnt Financing

3V2%

rather

Tuesday, St. Paul, Min¬

always attract highly competitive

latedly affects the secondary market, the various averages will re^

emulate
the
earlier
action
of
thg San
Francisco and Philadelphia reserve banks
in reducing the disthe

others

prices

3.80%. The re¬
at
yesterday's
about $3,500,000.

was

nesota,

decision

reoffered

was

yield 2.70% to
ported
balance

BY DONALD D. MACKEY

The

Financial Chronicle

The Commercial and

(2578)

10:00 a.m.

Volume

Number 5S60

191

The Commercial and

Financial Chronicle

(2579)

Steel Production

continue to be revised upward, as

complied

Electric Output

dwindling excess capacity, labor
shortages,
and
keener interna¬
tional
competition make it im¬

from

Carloadings

'"(V

Retail Trade

The State of

the

upon

"Chronicle,"

telegraphic

advices

the chief cities of the

coun¬

The

magazine
of

most

based

comments

that

optimism

current

any

autumn

hopes and the
evaluation.
There
is

try, indicate that for the week long-term
perative to expand capacity, mod¬ ended Saturday, June 11, clear¬ nothing in the order picture now
ernize equipment, and rationalize ings for all cities of the United to
justify hopes of a sharp up¬
States for which it is possible to trend in the near future.
production.
1
obtain weekly clearings will be
While seasonal influences have
The national metalworking

Food. Price Index
Auto Production

Business Failures

TRADE and INDUSTRY

based

Commodity Price Index

3.8%

above

those

the

corre¬

pressures since
weekly points out that July or¬
Our ders are disappointing. A recent
danger remains that sponding week last year.
preliminary totals stand at $25,- flurry of automotive orders has
the
expansionary
process
may
generate excessive demand. As a 368,040,654 against $24,433,283,062 subsided. Flat-rolled products

helped

ease

price

last fall, the

of about 2% during

the first quar-\
for the same week in 1959.
Our
quarter of result, there has been no substan¬
summary
for
the
tial departure from the policies of comparative
to
67,208,000 persons in 1959, after a rise of over 4% from
fiscal
and
monetary
restraint principle -money centers follows:
May, an increase of 1,049,000 over- the third to the fourth quarter of
000 Omitted ——N.
earlier.
Virtually
all Week End.
April, while unemployment last year. In Japan, the expansion adopted
June 11—
1960
1959
%
dropped to 3,459,000, or 201,000 continued at a very rapid pace in Western European central banks
New York—.
$13,605,972 $12,895,164 + 5.5
first
below the April figure.
quarter.
In
Canada, have by now acted to curb credit Chicago—™
During. the
1,151,806
1,197,243 — 3.8
May the average factory worker where the cyclical upswing has so expansion. In some countries, the Philadelphia
1,014.000
1,033,000 — 1.8
introduction of new credit
con¬
Boston
733,435
673,218 + 8.9
increased
his
working time 24 far been modest, the economy has
Central
minutes to 39.8 hours and average apparently been moving sideways, trols is being considered.
Steel Operating Rate of 50%
factory earnings by 91 cents to although above the level of the banks also have continued to issue
Forecast
$90.70 a week. The average fac¬ fourth quarter.
strongly worded warnings against
Steel operations continue to
tory production worker aiso got
The most rapid production ad¬
the perils of economic over-ex¬
head down, "The Iron Age" re¬
2.4 hours overtime a week, an 18 vances
continued uto
be in the
pansion.
minute increase over April. There
Production will hit a low
ports.
basic industries and in automobile
are
850,000 new workers in the.
point at or near 50% of capacity
production. Iron and steel output Bank Clearings For Week Ended
labor
market
and
school age
on
the holiday-shortened July 4
June 11, Up 3.8% Above Same
youngsters will soon seek summer in the first quarter, for example,

The Labor Department announced
this- week
that
employment in¬

ter

the

above

fourth

creased

vacation

ployment

em¬

was

of 67,594,000 was
July, but it is ex¬

total

recorded

last

that

pected

The highest

jobs.

high

new

will

made in the winter months of this
year.

running 30% ahead of a year

earlier

and 35%
Plans

the

United

Bank

Kingdom,

show

ahead in West Germany.

for

generally

investment

clearings

this

week.

week

will

increase compared with a

But even after that, no signifi-

"The

Iron

positive

Age"

outlook:

have to end

activity

May

Even

eral

Reserve

noted

view."

have

Bank

its

June

The

slowdowns, a rate of
purchasing to meet consump¬

tion will show

early
come

and

Automotive

(,2)

rush
in

models

1961

soon.

improvement. '
ordois foi the

suppliers

made

have

first moves, but this

their

has not been

general.
In spite of some

(3)

cant rebounding is expected until

Continued

cutbacks,

page

does

not

items

many

than

Commonwealth of Puerto Rico

5%, 33/4% and 3.90% Bonds of 1960, Series B

Y oFv

stronger

earlier.
employment
moved
up
sharply to a new all-time high in
mid-April, as outdoor employment
rose
after
an
unusually wintry
March.
Unemployment fell from
a

1960

$17,000,000

seem

pushed total factory out¬

—

for

June 16,

New Issue

York

New

put upward in May, but produc¬
tion in some industries—including
automobiles
registered further
gains. The prospect, moreover, of
later increases in production else¬
where was indicated by a recent
survey of consumer buying plans
which showed buying intentions

•

■

nj'-<

■.11

'-Ml

year

Dated July 1,

Due

1960

July 1,

shown

Total

AMOUNTS, RATES, MATURITIES*
AND

after

force

Personal

1961

2.50%

1962

2.75

400,000

1963

3.00

600,000

1964

3.20

600,000

1965

3.30,

600,000

1966

3.40

800,000

1967

3.50

1968

3.55

1969

3.60

1970

3.65

1971

3.70

auto¬

1,000,000

33/4
33/4
33/4
3%
33/4
3%
33/4
3%
33/4;

1975

3.80

These Public

and old houses, and

1,000,000

3.90

1976

3.85

valid

general obligations of the Commonwealth of Puerto Rico, for the pay¬

1,250,000

3.90

1977

3.85

ment

of which, both

1,250,000

3.90

1978

1,250,000

3.90

1,250,000

3.90

seasonal

adjustment.

showed

income

gain

April of $3.4 billion (seasonally
adjusted
annual
rate),
almost
the

first

tire

increase

increased by
information

the

over

en¬

According

quarter.

advance

.the

report,

retail

sales

3x/2% in April. Early
suggests that in May

800,000

retail sales remained at about the

April

high

level.

further

demand

tinuing

800,000

pickup

consumer

80£,000

800,000

suggested

by the con¬
Industrial Con¬

National

1,000,000

ference Board survey of consumer

buying

plans.

March

interviews

consumers

mobiles,

February

major

spring and
a

case

indicated

plan to buy

new

certain

new

appliances

summer

this

than had been

earlier.

year

1,000,000
1,000,000

and
more

A further

positive

influence is also to be
from business spending
for new plant and equipment. The
actual volume of outlays does not
expected

yet

have

to.

seem

indicated

levels

reached

been

down

scaled

the

ment

political or municipal subdivision thereof, or by any State, Territory,
or possession, or by any county, municipality, or other municipal
subdivision of any State, Territory, or possession of the United
\ States or by the District of Columbia.
Legal Investment for Savings Banks and Trust Funds in New

@100
1973 @100
1974
3.80%
•

@100
1979 @100
1980 @100

after
the

boom
vance

countries

abroad

year

are offered when, as and if issued and received by us, and subject to prior
approval cf legality by the Secretary of Justice of the Commonwealth
of >Puerto Rico and Messrs. Mitchell, Pershing, Shetterly id
Mitchell, Attorneys, New York, N. Y.

The above Bonds
sale and

flected

seems

increasing

Banco Credito y Ahorro Poncena

Banco de Ponce

Phelps, Fenn & Co.

ad¬

quarter
to

have

pressures

...

Blair & Cb.

ther

investment

months.

induce
in

production

coming
(season¬

ally adjusted)
showed an esti¬
mated increase in Western Europe

Hornblower & Weeks

G. H. Walker & Co.

Corporation
Cornoratfon

F. S. Moseley & Co.

Paine, Webber, Jackson & Curtis
W. E. Button &Co.

•

Reynolds & Co.

Dominick

Francis 1. duPont & Co.

kciniCoffin & Burr
moD&

Hayden, Stone & Co.

Wm. E. Pollock & Co., Inc.

Kirsch & Co.

Incorporated

fur¬

•

Industrial

Allen & Company

V R. W. Pressprich & Co.

American Securities

and

White, Weld & Co.

Salomon Bros. & Hutzler

Incorporated

L. F. Rothschild & Co.

however, it is expected that rising
wages will swell the demand for
goods

Ira Haupt & Co.

re¬

plant capacity and the spread of
labor shortages. In most countries,

consumer

Halsey, Stuart & Co. Inc.

Ponce, P. R.

economic'..

economic

the first

countries

principal and interest, the good faith and taxing power

of the Commonwealth are pledged.

Ponce, P. R.

Drexel & Co.

al¬

to
have slowed
The
slower
rate
of

somewhat.

in the opinion of counsel,

of New York

appears

expansion
some

pace

Improvement Bonds will constitute,

Morgan Guaranty Trust Company

The Chase Manhattan Bank

article, "Business
Abroad,"
the
Reserve
underlying expansionary forces strong in the major
Bank finds the

industrial

York State

1972

Trends

though

in the opinion of counsel, from taxation by the Govern¬
of the United States, or by thS Government of Puerto Rico or any

Interest exempt,

aggre¬

second

spending

gate.
In

*Descriptive Circular upon request
(Includes full information on
Redemption Provisions)

the

surveys
of
plans taken a
few months ago, but there is no
evidence
that
these
plans have

business

Principal and semi-annual interest (January 1 and July 1) payable at the principal office
of The Chase Manhattan Bank in New 1 ork City, or at the option ot the holder, at
the office of the Government Development Bank for Puerto Rico in San Juan,
P. R. Coupon bonds in denomination of $1,000, registrable as to principal
alone or as to both principal and interest and, if registered as to both
principal and interest, reconvertible into coupon bonds.

PRICES,

400,000
400,000

.double

YIELDS OR

(Accrued interest to be added)

5.4% to 5.0% of the civilian labor

will

bodymakers

Some

"Monthly Re¬
expansion in

April

demand

consumer

consider¬

ap¬

to have steadied at the higt
levels achieved in April, the Fed-

pears

the

will

cutbacks

soon.

summer

steel

Inventory

(1)

ing

points to these
the
market

factors

figures late summer or early fall.

Preliminary

ago.

year

Week

Economic

1959

have leveled. But many
products have not yet hit bottom.
While
short
term
gloom ap¬
pears
to
dominate the
market,
appear to

Laidlaw & Co.

Gregory & Sons

Cruttenden, Podesta

Co.

Wallace, Geruldsen & Co.

r.
i

issue

June

DEALER-BROKER

The

data

PARTIES

INTERESTED

SEND

THE FIRMS

MENTIONED

THE

WILL

FOLLOWING

ber

Stock

List—Booklet

Selected

Chemical

Co., Ltd.; Ta-

Industry

Street, New York 5, N. Y.
Also
a bulletin on General

Steel

Motors Corporation.

Street, New York 5, N.Y.

Stock

Bank

Quarterly—Review—

M. A. Schapiro &

Co., Inc., 1 Wall

Street, New York 5, N. Y.
Book:"

"Blue

dian

and

oil

Cana¬

iron,

gold,

copper,

uranium

Reviews

stocks

nickel,

available

Point

Chartcraft
Service—64

trial

week

$10—

subscription,

Stocks

Chemical

Securities

mended

—

Bulletin

New

memorandum
Stocks

Corporation,

Review

—

Hanly,

—

Bulletin

General

with

Barden
Precision

Broad¬

Bulletin

Park,

—

Ten

;

Forecast—
1970—Dom-

forecast to

Dominick,
5, N. Y.

Wall

St.,

York

Chest

Treasure

Stocks

— Monthly
stock
economic review —

and

inick

for

Bank

Continental

Rico—

Develop¬

Puerto

Rico, San

Banking

Wall

Company—

Co.,

Hayden, Stone &

—

Street, New York 4, N.Y.
National

Diamond

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

West—28 page

Corporation—
&

Hutton

Growing

indus¬
trial advantages of the area served
—Utah Power & Light Co., D. H.
White, Manager Business Devel¬
opment
Dept.,
Dept.
A5, Utah
Power
&
Light Co., Salt Lake
City 10, Utah.
brochure

Thursday, June 16, 1960

Redpath, 2 Broadway, New York
4, N. Y. Also available is an anal¬

ysis
and

Merchants

Minerals

Chemicals Corp. 0f
Analysis — Halle &
52 Wall St., New York

Stieglitz,

Co., 14

Corporation—

551 Fifth

& Company,

Ave., New York 17, N. Y.

Also available

data

are

Union

Tank Car.

Memorandum—

—

Mitchell Hutchins
La Salle

Ekco Products
Francis

Co., 231 So.

Street, Chicago 4, 111.
I. du

Memorandum—

—

Pont

Moore

Corporation Ltd.—Analysis

Osier, Hammond & Nanton,
Ltd., Nanton Building, Winnipeg,
Manitoba, Canada.
—

William

Ohio. Also available is
of Penton Publishing

available

Philip

memorandum

Co.,
207
East
Michigan St., Milwaukee 2, Wis.

ties

Frontier Refining Co.—Memoran¬

Leisure

Time

Boston

—With

particular
reference
to
Broadcasting-Para¬

ers,

Petrofina Ltd.

memorandum

Cana¬

Leisure

Time

Stocks

—

Review

—

Milwaukee

Equipment, Northrop Corporation
and Ryan

mount

Stocks

Review

—

Theatres,

Machine

Inc.,

American

Foundry

Hammond Organ Co.

Co.,

—

Publish¬

19th

—

edition

and

Purcell &

The

—

First

Corp., 15 Broad St., New
York 5, N. Y.
*

Missiles

Acme

Bruns,

—

New

Porter—Memorandum

—Coffin &

Burr, Incorporated, 60
Street, Boston 9, Mass.

dum—Peters, Writer & ChristenInc., 724 17th Street, Den¬
2, Colo.

sen,
ver

Memorandum

Nordeman

Broadway,

Fischer

—

General Electric

Memorandum

—

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

bulletin

Gillette

Co.,

York

115

analysis

Inc. — Analysis —
McKinnon, 2 Broad¬
New York 4, N. Y.

State

Filer—Crown

—

Co.

Morris,

United States Government Securi¬

—Herbert

Moore, Inc.—Analysis

—Fulton, Reid & Co., Inc., Union
Commerce Building, Cleveland
14,

& Co., 1 Wall
Street, New York 5, N. Y.
Also

Calif.

Understanding Put & Call Options

;•

.;'■*■

5, N. Y.
Mission

N.Y.

—

Union
Adolphus

—

Dept. A-7, 419 Park Avenue,
South, New York 16, N. Y.—$3.00
(ten day free examination).

Review

Lines Inc

Dallas

—

America

way,

—

Motor

Co.,
Inc.,
Dallas 2, Tex.

Refractories
Report—
Singer, Bean & Mackie, Inc., 40
(Exchange Place, New York 5,

Stocks

Company
Amphenol

Securities

Tower,

Electro

Time

Fast

—Memorandum

Thomson

Hemphill, Noyes & Co., 15 Broad
St., New York 5, N. Y. Also avail¬

Murphy

Borg.

Raymond International.

Leisure

memorandum

Spring St., Los Angeles

National

Weingarten

—

Dobbs Houses
the

Insurance—Memorandum
—William R.
Staats
&
Co., 640
Street, New York 5, N. Y. South

Diamond

Data

Investment

Year

Puerto

Government

—

Review—W.

Ryan, Inc., 70 Pine St., New York

American

Aeronautical—Shearson,
Hammill & Co., 14 Wall Street,
New York 5, N. Y.

ment

Street,

—

North

100

St., Hempstead, N. Y.

Japanese

The

Fansteel.

reference

particular

Recom¬

—

2 Broadway,
York 4, N. Y. Also available

Defense

and

Co.,

!—

Tax Exempts

dian

Avenue, Larchmont, N. Y.

New York 5, N. Y.

way,

able

Chartcraft, Inc., Dept. C-l, 1 West

,Goodbody

Outlook

textbook and 6

page

Report

Company,

Salle

Commonwealth

25 Broad

Comments

Hanseatic Corp., 120

York

Illinois

The

—

Inc., 231 South
Chicago 4, 111.

Shaw Bank of Buenos Aires—New

5, N. Y.

Nomura

ASE

Figure

Bulletin

Analysis

New

digest

alysis of Ventures Ltd.

St., New York 5, N. Y.
City of Memphis, Tenn.—Bonds—

the

Investment

an¬

Tor-

Corp.,

Inc.—Analysis—

Cooke

Juan, P. R.

—

Economic

Franklin

Also

Possibilities

Exchange

investments—Stearns & Co., 72
Wall Street, New York 5, N. Y.

Edwards

Canada.

Co., 36 Wall

GutmanLetter—W eekly comments

Company Ltd., 25 Ade¬
Street, West, Toronto, Ont.,

laide

Steel

Castle

Newburger, Loeb & Co., 15 Broad

Draper

—

Dobie and

Co.—Bache

and

Armstrong Rub¬

Co. and

ota Motor Co. and Yawata Iron &

available is

the

Exchange

Financial

Argentina
Bache

Company.

Stock

buy, switch or hold suggestions on kedta Pharmaceutical Industries;
524 stocks—Bache & Co., 36 Wall Tokyo Shibaura Electric Co.; Toy¬

listed

Northwestern

rington

LITERATURE;

article

Co., S. D. Warren Company,

Standard

PLEASED

Securities

York

Wire
THAT

issue

same

New

AND RECOMMENDATIONS
UNDERSTOOD

Exchange"—

St., New York 5, N. Y.—20 cents
copy
($1.50 per year). Also in

the

Foreign

"The

Exchange Magazine, 11 Wall

INVESTMENT LITERATURE

Financial Chronicle

The Commercial and

(2580)

Aviation Corporation

National

Analysis—Hornblower
Wall

St., New York

available

Also

—

Weeks,
N.

analysis

U. S. Rubber.

Cash

National

—

Review

—Ira

Haupt & Co., Ill Broadway,
New York 6, N.Y.
Thermador

Norris

Memoran¬

—

dum—Walston &

Co., Inc., 74 Wall
St., New York 5, N. Y.

American Sulphur Company
Analysis — Joseph Walker &
Sons, 30 Broad St., New York 4,
N. Y. Also available is an analy¬
sis of Emery Air Freight Corp.
Pan

—

Stocks

Electronics

Bulletin

—

Boenning & Co., 1529 Walnut St,
Philadelphia 2, Pa. "
"Eligible Book"

preferred
listed

the

—

I960 edition of

and ^common

Toronto

and

Mon¬

Co.,
N.

New

Broadway,

available

Also

York
data

are

4,
on

Servel Inc.
Oil

Wall

available

Gundy

and

Co.,

figures
Inc., 40

St., New York 5, N. Y.

Gillette.

heimer and

Company, 326 Walnut
St., Cincinnati 2, Ohio. Also avail¬
able are an analysis of Procter &
Gamble

Co.,

Macy

Co, and data

Stock Exchanges considered Over-the-Counter Index
Folder
eligible for investment by Cana¬ showing an up-to-date compari¬
dian Insurance Companies — in¬ son between the listed industrial
used
in
the
Dow-Jones
cluding lists of new entries and stocks

Chemical.

deletions

from jthe previous edi¬
Cochran, Murray & Hay
Limited, Dominion Bank Build¬

Averages

Amerada

tion

counter

ing, Toronto, Ont., Canada.
Fire

treal

—

Casualty Insurance Stocks

•—Comparison & Analysis—Laird,
Bissell & Meeds, 120 Broadway,
New York 5, N. Y.
Investments

Foreign

Discussion

—

Yamaichi

Japan—

Securities

Co. of New
way,

York, Inc., Ill Broad¬
New York 6, N. Y. Also

available
subishi

reviews

are

Electric

Mit¬

Mfg. Co., Nippon

Oil

Co., Ltd., Toyo Koatsu In¬
dustries, and Mitsubishi Estate Co.
Growth

economic
for

and

Japan

ence

the

Orient—Study

investment

with

outlook

particular

refer¬

Electric

Power

Kansai

Company; Matsushita Electric In¬
dustrial

Sony

Co.;

IV^itsui & Co., Ltd.;

Corporation;

over-the-

stocks

used

Garrett

Co.,

—

Broadway,

New York 6, N. Y: Also available

review of Kroger Company.

Government Employees Insurance

Corp.—Analysis—Alfred

Van-

den
Broeck
&
Co., 55 Liberty
Street, New York 5, N. Y.
Also

Heyden

Petroleum

Corp.

circular

same

are

reviews

Inc., National Starch
Chemical Corp., and Tuboscope.

—

Sumitoma

—Cooley & Company, 100 Pearl
Street, Hartford 4, Conn. Also in

market

the

both as to yield and
performance over a 20-

period

year

Bureau

Bureau,

—

Inc.,

National Quotation

46
Front
Y.

Street,

New York 4, N.

Recommended Investment Lists—

income, growth and yield —
Reynolds & Co., 120 Broadway,

New York 5, N. Y. Also available

analyses of Pullman Inc., Ten¬

nessee

Oil

Retail

comparative figures

Stocks.
Stores

Witter &
San

—

Review

-—

Dean

Co., 45 Montgomery St.,
6, Calif.

Francisco

Selected

Stocks—In

various

cate¬

gories—Courts & Co., 11 Marietta
St., N. W., Atlanta 3, Ga.
Soft

Columbia

System

Drink

Industry

—

Article

and
&

For financial institutions

only—

are

Broadcasting

Rubber Co.

Foreign

Newport

—Analysis

Chemical

York

5, N. Y.

Amphenol
Bulletin

B o

r g

Electronics

Carreau

—

Howard

111

Canada

—

Manufacturing

Co.—Bul¬

Corp.

Industries,

Inc.—Analy¬

Corporation,

Broadway, New York 6, N. Y.

International

Co., 115
Broadway, New York 6, N. Y.
Benson

—

Rhoades

Nickel

Company of

Review—Carl M.

Co.,

Wall

Loeb,
Street,

New York 5, N. Y. Also available
are reviews of Ryder
System, and

letin—De Witt Conklin Organiza¬

tion,

Inc.,

Iowa

York

5, N. Y.

120

Broadway,

New

—

Analysis—H. M. Byllesby and Co.,
Inc., 135 South La Salle St., Chi¬
cago 3, 111.
Water

—

report

Light Company-—
—

Iowa

Power

Light company, 823 Walnut Street,
Des Moines 3, Iowa.

Telephone

Annual

Water

Power

Annual

Binks Manufacturing Company

Company

York
&

report—Cali¬
Telephone Com¬

Street, San

Lancer

Industries

—

Bulletin—L.

Rothschild

way,

& Co., 120 Broad¬
New York 5, N. Y.

Long Mile

the

available

United Financial

Corporation

can

Rubber

Corporation—

Analysis — Dempsey - Tegeler &
Co., 210 West Seventh Street, Los
Angeles 14, Calif..

and

Woolrych,

Principal for

Brokers, 'Dealers and Financial Institutions

Dabentures

—

Common

—

Warrants

—

Units

Members: New York

Bought

•

Sold

Prospectus

HAnover 2-0433-45

See's Candy
—Hill

NY 1-4722

Teletype NY 1-376; 377; 378

rates

Members: Principal Stock
National

Association

—

Also

Arenas

Inc.

Analysis —
&
Carlsen,

Shops Inc.—Analysis

Richards

American Greetings Corp.

Southwestern

Service

Electric

quarterly
reports — Southwestern Electric
Service
Company,
Mercantile
Bank Building, Dallas, Tex.
Southwestern

and

States

Telephone

Company—Annual report—South¬
States Telephone Com¬
300 Montgomery Street, San
Francisco 4, Calif.
western

pany,

Symington

Analysis
&

son

Webber,, Jack¬
Curtis, 25 Broad St., New
5, N. Y. Also available are
Paine,

the

Continental

Transit

Freeze

dum—Jerome

Wall

Corporation—

Wayne

—

Steel

Industry

Can.

Corp.—Memoran¬
Robbins

Co., 82

St., New York 5, N. Y.

V.—Analysis—Nor¬

C. Roberts & Co., 625

San

way,

Diego

available
Foods

bulletin

Broad¬
Also

Calif.

Hunt

Industries.

Wallson Associates,
—Russell

Saxe,

New York 5, N. Y.
is a memorandum

Inc.—Analysis
50 Broad St.,
Also available
on

Sagamore

Manufacturing.
Watson

Bros.

Transportation Co.,

St., New York 4, N.

Broad

West Coast Telephone

Exchangee of Canada
Security

review

Inc.—Analysis—Herzfeld & Stern,

&
of

Inc.

& Co., 621 South
Spring St., Los Angeles 14, Calif.
Also
available
are
analyses of
Wyandotte Chemicals Corp. and

Wemp
The

regular commission

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400

through and confirmed by

TROSTER, SINGER & CO.
74

•

request

Orders Executed

Member New York

Securities, Inc.

Security Dealers Association

Broadway, New York 4, N. Y.

TELEX 015-220

Sports

Currier

Unilever,

Grace Canadian

Rorer

Incorporated, 233 A St., San Diego
1,
Calif.
Also
available
is an
analysis of Fed-Mart Corp.

and

Specialists in Canadian Securities

are

Theatres

man

Conv.

reports on Ameri¬
Broadcasting Paramount

York

Teleregister Corporation

bulletin

same

William

comments

The

5, N.

Engineering

—Review—A.

Company—Annual

Philips Lamps.

fornia

Reliance

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

sis—Aetna Securities

New

Electric

Broadway,

Ryan Aeronautical

Schweickart

—

American

Motors—Report—Har¬
ris, Upham & Co., 120 Broadway,

review

National Cash Register.

Heyden

Co.

Power

circular

same

pany, 300 Montgomery
Francisco 4, Calif.

Buildings Corporation

memo¬

—Memorandum—Hardy & Co., 30
Broad St., New York 4, N. Y.

Corp., and Pittsburgh Plate

Glass Co. and
on

randa

Merrill

—

available

Also

American

For

are

Memorandum

Analysis —
Meeds,
120

—

the

Pierce, Fenner & Smith, Incorpo¬
rated, 70 Pine St., New York 5,

Quotation

Bissell

M. Kidder & Co.,
Inc., 1 Wall St., New York 5, N. Y.

Great Western Financial—Review

National

Incorporated

Laird,

Newport

Lynch,

the

Ranco

of Radiation,

and

California

Uris

review

Review

—

Averages,

—

the

and

industrial

Corp.

Company

Fahnestock

Chemical—Review—West-

Allied

Canada—Facts

—Wood,

Also

Dealers

Broadway, New York 4, N. Y.

Company-

Annual report

— 300 Montgomery
Street, San Francisco 4, Calif.

Wurlitzer

—

Rothschild
New

Memorandum—L.

York 5,

Co., 52 Wall
N. Y.

Street,

Volume

191

Number 5960

The Commercial and Financial Chronicle

also manages iron ore mines, ships
ore and buys and sells it. It also

Substituting Iron Ore Stocks

has

For Some Steel Stocks

Poole

anticipates

wall

hedge

against

inflation.

sharp upturn in steel production by late

early fall, and

increasing demand for iron

area

interest

The

subject to be discussed

certain

per¬

industry and

ore

selected stocks in this in¬

dustry,

but

eva1u

necessary

ting

these stocks
to make

some

forecast
steel

produc¬

tion

for

the

remainder
1960.

million

belief that
have

over.

Let

the

seen

lowest

very

The

facts about the iron

some

dustry. Our main

steel

iron

production for

this year with
the
possible

the

exception of

is down

the

and
Alan C. Poole

mills

will

closed

vacations.

for

briefly,
ore

in¬

of supply

source

continent

this

Superior

and the
product
direct shipments

far

concentrates

are

concerned.

it is called,
this might be considered a growth

or so

product.

taconite

for

Demand

Canadian

could increase in the

coming
years, but let me warn that one
must stay fairly close to the estab¬
lished
companies with iron ore
properties geographically located
where
the
ore
can
be
shipped
penditures program. Earlier this readily. By all means avoid flyyear I forecast ingot production by-night p romotions. Another
at 125-million tons, but I lower area with high iron content ores
this reluctantly to 120 or possibly is South America with Brazil in
115. It is debatable Whether 1960
particular having ores with a con¬
will be a record steel year or not, tent as high as 68%. Venezuela
but, in my opinion, there is a has good grade deposits, but the
good chance it may prove to be political situation has to watched
in this country. Liberia, too, has
one.
Ah far as market interest in good deposits.
Now let us deal with specific
steel stocks is concerned, I feel
that in the past few days interest companies.

upturn in produc¬
tion and by late summer or early
fall production will turn up rather
sharply under the impact of 1961
passenger car production as well
as an
increase in the capital ex¬
we

may see an

switched

has

the

from

into

issues

electronics

ores

the

although I ques¬
tion whether they will be worth

have

the

Mesabi

rise,

they are selling at by
Personally I do not
feel
that
the '.steel industry is
stable enough nor is the growth
price

Labor

Day.

potential
steel

great

sufficiently

stocks

to command

St.

John

National

for

better

110.

Cliffs

companies,

second

This company owns good
properties and also has large
holdings of Republic Steel, Inland
Steel, Youngstown Sheet & Tube,

Steel

Stocks

discussion,

Turning

Laughlin and Wheeling
Approximately 4,000 acres
timberland in
Michigan are

the subject

namely,

iron

now

speculation,

Great

Northern Iron Ore selling
is worth looking at. At the
of each year a liberal divi¬

at 20

dend

cents

the

Cleveland

Cliffs

and

operates
hydroelectric plants there. In
company

view

the

owns

fact

at less than

tial

1960

rather

considered

was

out $2 this year

stock

feel

these

levels.

M. A.

Hanna, incidentally, is sell¬
around
20
times
potential

ing

earnings, but
their stake
is

not

one

must remember
is

overseas

enjoyed

one

which

Cleveland

Cliffs.
Mesabi

Iron,

much-maligned

stock for many years, has finally
worked
out
an
agreement with
the

Reserve

Iron

owns

Mining

and

Co. Mesabi
virtually

controls

all the best magnetic taconite de¬

posits

the

Mesabi

Mesabi's
to

operations
expand shortly.

stock still has

traction.

The

Range

and

expected

are

feel

this

great deal of at¬
is

company

position where it will be able to

non¬

of which approxi¬

future

The

this

non¬
com¬

depends

success

Hanna

Range, but it has done

S, A.

As a concluding point I would

like to point out that the demand
for iron

ore in the United States
is increasing. The estimated use
for 1960
is around
130-million

magnetic taconite

ore

There

interesting

are

some

Canada

with

Hol-

linger Consolidated probably
the

should

might

situations
of

tons

reserves.

This

best.

substantial

company

interests

iron

one

well

their money

used.

and

concentrating low-grade ore.
years ago when I was in

few

the Mesabi
note

Range I

ore

that

was

so-called

It is still a leading Canadian
gold producer and if the price of

shipment.

able.

Even

without

rise

in the

price of gold, this stock presents
a
good value with its iron ore

the

iron

ore

♦Ah address by Mr. Poole before the
Association of Customers' Brokers at the
Steel Forum, June 6,
1960, New York

Granbery, Marache

To Admit Partner

Granbery, Marache & Co., 67 Wall
poten¬
St., New York City, members of
tially valuable iron ore properties
the New York Stock Exchange,
well located geographically near
Sault
Ste
Marie which
if
de¬ on July 1 will admit William M.
Algoma

Steel has

some

veloped could very well prove out Lendman to partnership.

an offer to sell or a solicitation of an offer
The offering is made only by the Prospectus.

buy these securities.

Company

of New

York, Inc.

First and Refunding Mortgage

Bonds, 4M% Series R,

due June 1, 1990

ore

Dated

June 1, 1960

Price 100.799% and accrued
interest

GULF STATES UTILITIES COMPANY
Notice of Invitation for Bids for the

Purchase of First

NOTICE IS HEREBY GIVEN of

Mortgage Bonds,

1990, of Gulf States Utilities Company. Bids

Prospectus may be obtained in any State in which this announcement is circulatedfrom only such
of the undersigned and other dealers as may lawfully offer these securities in such State,

% Series due

for the purchase of all of such
12:00 Noon, New York Time,

will be received by the Company up to

Monday, June

The

the Public Invitation for Bids for the Purchase of

$17,000,000 principal amount of First
Bonds

Mortgage Bonds

HALSEY, STUART & CO. Inc.

27, 1960, at the offi'oe of The Hanover Bank, Room A,

Broadway/New York 15, N. Y. Copies of the Public Invitation for Bids, which
sets forth the terms and conditions relating to such bids, the Registration State'

ment and the

may

related Prospectus, and other

more in¬
in direct placements and

equities where, if you make a
good investment, it cannot im¬
mediately be taken from you. It

in by

hedged

are

less

bonds,

still substantial

some are

terested

legal
restrictions that they have little
or no option to enter the alterna¬

funds

in¬

several:

are

pro¬

yields and

against

Pension

is raised above

insurance companies invested very

curities

attractive

Finds

various

placements

supply of funds available

duced

the relative attractiveness of these

most

direct

better

for capital

economy

constantly changing and

are

the

a; properly
market. The

capital

demands

sectors of

life

greatly. Conse¬
insurance
funds

where heavier demands relative to

field

one

interest- rates

process

functioning

naturally arise (1)

life

funds

widened

industrial bond

investment

it often does, then life

post¬

of flowed heavily into mortgages and

group

flow into the other. This is

they, where

unattractive

insurance
and

field

one

becomes

The

been

economy

available to the broad gauged in¬

sophisticated and seasoned inves¬

G. T. Conklin

debt

consists

■.

capital from all private
of investment

quently,

•

tremendous

sectors, the range
opportunities and

necessary ex¬

investors

the

invest¬

the

factor

expansion with its heavy de¬

war

and

was

major

ment

other

mar¬

for

investors

mortgages, corporate bonds,

tax-exempts,

the fi-

Insurance

lower rate of interest

tional group. They invest in every
medium of which you can think,

this industry

rely

insurance

probability
the
gauged investors of

means,

nancial

Industry's

Interest

all

through inter-

must

Insurance
Lack

the

program

nal

Association of
that, in the case
of 54 of the 57 companies, protec¬
tion against early redemption at a
e

America revealed

largest part of
sion

panies
L i f

often

finance

brief look at these

of 57 life insurance com¬
conducted in 1958 by the

pro¬

became

purchasers, and became

any

A survey

questions.

manufacturing

industries,

take

they

rates;

although

time, be

decades, only
of those investments

refunding at lower

interested in electric utility

a sound one if you have
alternatives, and the markets
taken away in 1954 when interest today offer many such alterna¬
rates temporarily sharply de¬ tives,
in
municipals,
in direct
clined. One issue was refunded placements, in commercial mort¬
even
before
final
delivery- was gages, in U. S. Governments, in
taken by the investors. Gradually,, Canadian .Governments
and in¬
therefore, the industry became, in¬ vestments of all types, in World
sistent upon adequate call protec¬ Bank bonds, in natural gas pipe
tion and directed their investment lines, in purchase lease-backs, in
to areas where they could obtain equities, etc.
:
it, and away from areas
(i.e.)
No, the reason is primarily be¬
where it was largely unobtainable.
cause the state and local pension

pension funds, may follow the life insurance industry in shying

interest

the value

tection against

judgment, for it is difficult to un¬
derstand how a "heads you win,
tails I lose" bargain can, at any

in the previous two

emphasis

glance. Surely it is not
of seasoned
investment

first

to have many

the

and became more seasoned inves¬
tors, they broadened the scope of
their operations and placed great-'

Why these funds are purchasing
electric utility bonds is not clear

forcefully brought home to
the importance of adequate
protection against call for refund¬
ing purposes. After having suf¬
fered through two decades of low
interest rates, investors finally, in

Thursday, June 16, 1960

this year.

had

Creating Greater Interest
In Electric Utility Bonds

10,

'.:J

Co.

White, Weld

1960.

"...I'll..

Co.
&. Co.

;

Goldman, Sachs &. Co.
Dean Witter & Co,

Volume

191

Number

5960

The Commercial and Financial Chronicle

...

(2583)

bonds becomes less

'"trapped" and
seasoned, the interest rates

on',,

electric'

cepts

increases in

to other fields of investment will

integral

part

of the

By Donald C. Power,* Chairman and Chief Executive Officer,
General

Telephone & Electronics Corp.

All

•

rather

four

phases

and industrial, and

ket, and this will bring back the

to $15 billion this year, or a

interest

The total

other

investors

who

find greener fields elsewhere.

*From

June

Institute,

Atlantic

City,

1960.

1960-1970

the

defense electronics would

still

the

billion

major industry in
the country today — if not the
world—and the potential for continued

future

countermeasures

and

growth is sub¬

countermeasures

stantially

mean

ST.

LOUIS, Mo—Walter M. Fas¬

has been elected

Directors

Board

to the

of Fusz-Schmelzle

Co., Inc., 522 Olive Street,

Firmin

cording
Albert

and

Fusz, Jr.,

Fassel

has

been

joined in 1953.

ing

indus-

the

•

Richard

H ^7 T®T*1 IT
x

aiimguun

communica-

climb

the

■

of defense

case

puter

C. Power

Donald

Four or five

described elec-

"the world's most prom-

move

if -I

all

its

not

were

field with

into the 1960's,

.•

ics

Street

Sales, Inc.,

simply hasn't been watching. ;
So that you can

sales

tional

will

distributor for
One

The
li

Wil¬

and

Street

a m

see

here now, let me
briefly in history

you

very

Fund, Inc. and

dustry came from. As recently as

Scudder Fund
-

the

Edward

Burr, Pres-

i d e n

an¬

nounced.
F

will

the

the company's

with particular emphasis
upon pension and profit sharing
plans and estate planning.
group

Farrington
for

was

sales

New

manager-group

y-'/JJ,

pensions.

The

Company of

recently

most

area

previously

years

Prudential Insurance

York

with

Then

the

re¬

potential for growth

point out
especially in-

ics

tists

New Wire

the early years
before America was
directly into it, the scien¬

country

engineers here in this
in Europe began to

and

find entirely new and broader ap-

System

distributors and dealers
in investment securities, has
placed in service a new 2,000 mile
teletype system which puts
its
New York City office in immediwith

the

firm's

quarters in Charlotte,
its

The

head-

C.,

and

offices

branch

system

reach

$6>7

billion

A*uu' * u *

(1)

totals

add

and

function

eration

is
of

based

the

upon

electrons

gen¬

vacuum

and

tronics

where

see

industry

the

This is not

and

transmit

pick

hear

the

already

maintains

Co., Inc., with
in
Charlotte,

offices

Atlanta,

Ga.;

New

Chicago;

Columbia, S. C.; Greenville, S. C.;
Jacksonville

industry and

$1.00

per

Out

the

effort

The

Company is

each
came

(4) The vast number of

ten

June 30,

technical advances and so^
hiuch new know-how that the end
of the war found us with a new
industry

that

During
shares

few

very

and the home that will be found
for electrohic equipment and devices.

(5) The increased strength elec¬
tronics will bring to National De¬

(6) The increased opportunities
for employment and investment.

talk

National
New

York

Mr;

Industrial

Power-

means

offering to its

and

Miami,

Fla.;
Raleigh, N. C. and Richmond, Va:

Now Sole

Proprietor'

Sylvia J. Hollander is now sole
proprietor of Adrian H. Muller &
Son, 103 Park Avenue, New York
City.

common

made only

of the official Prospectus.

held.

The

stockholders of record June 9,

shares at the rate of

rights will expire at

one

3:30 p.m.

share for

Boston Time

1960.

the

and
as

after the

subscription

stated in the Prospectus

period,

the

which describes

Underwriters may offer
more

television

taken

was

down

fully the terms of

offering.

You

are

invited to ask for

and the Company's

Prospectus describing these shares

business. Any of the undersigned who
will be glad to give

Paine, Webber, Jackson & Curtis

tenfold

total

a£f1i.nst> .as

iain\/r^

Hemphill, Noyes & Co.v

Hornblower & Weeks

+^
and 1940 More than .60% of the

Carl M. Loeb,

total in +1950 represented TV and
jadio^sets, service and distribu^ °,nlI
about $560 million, and was

i. Berth & Co.

•

Hcsyden, Stone & Co.

W. C.

Lee Higginson Corporation

Alex. Brown & Sons

-just
beginning to move into the en¬
tirely new era of supersonic air¬
craft, guided missiles, and space
technology
and

you a copy.

sales and revenues had

legally

compliance with the securities laws

of your state

^bution and service,

can

the

1959,

moved

years

between

defense

total

1950

electronics

nearly

C. E.
June

15,1960

F. S. Moseley & Co. Shearson, Hammill & Co.

Rhoades & Co.

•

Langley & Co.

Dominick & Dominick

Tucker, Anthony & R. L. Day

Uhterberg, Towbln Co.

before

Conference

City.

people had heard much about. But
then

new ap-

mmmemo

niany

major

the

^icatianl in
inHn^trv
Potions in commerce, industry,

share)

Growth

war

companies.

new

offer to sell. The offering is

1960, rights to subscribe for 63,656

increased

headquarters
C.,

the

■

merciar'electroilics"1broadcasting
I -:+3 if *V
b broa?castin£>

network

York;

entrance

► Common Stock

"electronics."

word

new

Reviews

automati-

via

R. S. Dickson and

N.»

notentiiN

Laboratory for Electronics, Inc.

IF electronics, %ntertahiment

a
unique
scanning device,, which
routes messages to all branches in

its

erowth

► 63,656 Shares

(Par Value

new

elec¬

whole

►

(3) The expansion of companies

going. From sales and revenues of

New Issue

UlTautomatic g

electronic

the

The

new

£
cally

introduction

bdieb dna revenues.

are

various

the

offer these shares in

signed to

The

(2)

Projections Made

let's

Now

growth will come from new con-

for the vacuum tube
other types of tubes whose

electron¬

fense.
Adds

nearly

billion by 1970. This

ncJ ^ 5

unprecedented

products and services.

1965

plications

writers,

yearj

during

and

R. S. Dickson and Co., Inc., under¬

nil

this

increase

appears

from the standpoint of:

$3 billion,

70%.- It
should climb another $350 million
an

fu-

its

Growth

employment of around

applications of this
principle became so numerous that
in the early 1940's we began to

Dickson Instals

touch

ing

basing

word

war,

drawn

tube. The

ate

reached an annual volume of more
than $3.1 billion in 1950 (includ-

organization is

v, In summary, let me say that the

associated

increase the total by about $100
million, and by 1965 the annual
figure is projected at nearly $2.4
billion. By 1970, the projection is

industry

conclusions

have

70,000 back in 1940.

expandin g

America,

the

crystal ball, but

entered

vocabulary. This business rep¬
sales of some $500 mil¬

lion

R. K. Farrington

services to members of its selling

employed

even

resented

supervise

Mr.

hadn't

"electronics"

develop

and

immedi-

the

industry, "but

casting

Mr.

ington

a r r

1930's and the years

ately before the war, there wasn't
any
electronics industry, as we
use that term today. There was the
radio manufacturing and broad-,

Canada

Ltd.,

segment* of

the service and distribution
businesses). The total passed $5
where the electronics in-, billion last year which represented

give

back

better evaluate

growth projections I

of the

some

this

certain

Summarizes Bases for Predicted

been

Street, New
York City na¬

is what

com¬

appointed Director of Pension and
Profit Sharing Services for William

draw

ture planning as far as electronics
is concerned on these projections.

ising technological revolution," and closer and closer to the moon.
Turning now to the broadcasting
And I would guess that anyone
Turning now to entertainment business revenues rose 300% from
who wasn't convinced back then, electronics — which includes, of about $550 million in 1950 to $1.6
1 William certainly is b^'ftbw. IfTi&Tsn't, he course, television, radio, and hi-fi billion last year. This year will
has

Farrington

realistic pro-

— and
attempted. It
saying that the over¬
all General Telephone & Electron¬

the

which
also
ponents,
and
making more and more use
microwave radio systems.

goes without

espe-

the

can

that

—-J

J~"'

today, but I wouldn't be surprised
to find them revised steadily upward

around

based

from available information

will
as

are

teresting potential is the telephone
business, because of the development of many new types of devices and so-called "interconnected services"
which
use
many
different types of electronic com-

year

—

years ago, someone

tronics

that

1965, and $101/2 billion by 1970. In
my
estimation those figures are
the best projection we can make

reaching

built

and

miss

should be up around
$5.2 billion, around $7.8 billion by
,

projections

figures X have been giving

pretend to have

elec¬

equipment. I would be greatly

and space travel, total ex
penditures for defense electronics
this

course

ef¬

enormous

these

have

torical and current facts. We don't

an-

industry will

jection of past trends, and on the
application of logic to known his-

daily in data processing, which of

lites

potential,;

developments

P"t OH

of the

because

of the past 25 years.

[Vj^mpc;
xnciiiiv^o

;

-being directed toward satel¬

far

Sales

should

1970.

becom¬

and

you

use

$4.6
billion by 1965 and $6.3 billion by

electronified,

increasingly

fort

technological
*

defense

its

nual

the

equip-

manufacturing processes,
sales

jamming of

national

cause

electronics
represents one
°f the most

president and one of the principals
of
Fusz-Schmelzle
& .Co.
which he

commercial

1965,

These

(especially electronic data
processing and telephony) as well

counter-

try's past de¬
velopment and

vice-

and

probably be revised upward
many opportunities unfold,

ac-

an
announcement by
Schmelzle, president.

to
M.

Mr.

York

devices

jamming) missile guidance systerns, early warning systems, and
the many other developments. Be¬

dustries. Aside

New

billion—which would

threefold increase in 11 years,

$2.8

Because of the broader

electronic

tronics;'

from the quantitative aspects

the

about

other large in-

mem-

Stock

vacancy

•

the jamming of the other fellow's

Exchanges, to fill the
caused
by
the
recent

the

exceed $15

billion, and the total

should

most

yond

Mid-

bers
west

death

be¬

phe-

sales and revenues, according to present indications, should

tions

(which - really
radar and

pretty

industry, but this

attained $21 M> billion annually,
and more than $27 y4 billion by
1970.

year

$4.8 billion—because of such developments as high-speed, highly
reliable communications systems,
electronic navigation,
electronic

fastest growing

considered

year,

virtually nonexistent 15

was

ment

nomenal in any

largest segment of the

reached $2x/2

phase of the industry absolutely far above the others.
industry

doubling of volume in 10

...

this

keep

years

ago, and totaled only some
$680 million in 1950. Last year it

' ''

period, commercial and industrial electronic

doubling of

electronics

The

sel

know,

elec-

ye^rs

is expected to display the fastest rate of increase but the

Fusz-Schmelzle

people

that

;

projected for 1965 is $21.5 billion, and $27'/4 billion for

anticipated

J.,

Fassel Dir. of

some

is * commercial and in¬
dustrial electronics. Here is a field

startling threefold increase since 1950.

usage

talk by Mr. Conklin before the
Annual
Convention
of
the
Edison

28th

ago,

entertainment

industry
v

broadcasting—add up in Mr. Power's estimation

1970.

Electric

The third

of electronics—defense, entertainment, commercial

isolated compartment in that mar¬

now

that

be leveling off, but
once again, the
industry has confounded the conservative thinkers.

entire

rose
to $14 billion last year—an
increase of 180%. As many of you

tromcs might

electric

bond market, rather than

about $5 billion in 1950, the total

hi-fi and radio. Three

years

thought

utility bonds.
These developments will make the
electric
utility
bond
market
a
more

four

rise, and more protection against
refunding will be accorded in¬
vestors

television set design, more
homes, and continued

second-set

utility bonds relative

the

Board.

(2584)

The Commercial and Financial Chronicle

hazards of delayed regulatory ap¬

Banker

dashes

cold

water

savings in paying a
for

belief

bank prime rate

that

officers

when it issues first mortgages

proves

and

the

loans

opposite
retired

are

commercial bank

There

when

occurs

against

additions

room

in the timing of

short-term

the

cost

difference
money

long-term

our

been

well

not

and

assets

liabilities

current

are

adequate

that

additions

a
company has to
by sales of equity, to
the
proverbial eye¬

that

extent

ital, therefore., zero. Manufactur¬
ing companies by contrast have a

brow

commences

net

nomic

working

41%

their

handsome
nancial

averaging
capitalization,
a

reserve

current fi¬

for

problems.

Current

contribute

meets

however,

the

eye

is
first

glance. It lies in the ability to sell
securities that
to

are

most acceptable

the

investor, and it is against
ability that the commercial

this

banker

happy

lend

tempo¬

funds.

rary

of this

re¬

borrowing

power depend, of
the quantity and qual¬
ity of the securities the company
course,

will

position to sell. If

has

company

additions

the

dustry,
able

the

eco¬

utility in¬

mortgages should be
some
price
under

extent

sal¬
any

conditions.

that

these

serves

the

there

So,

are

additions,

re¬

and

therefore mortgages that could be
sold against them
(even though
one

not actually plan to do
so), to that extent a company can
may

consider
with

itself

well

buttressed

the

reserves,

sufficient

that it

can-

bondable

completely

retire its bank loans from sales of

So,

can

quality

provide cash to

bills until such times

the

that

of
pay

com¬

There

Claimed

ference

rates

long-term

the

and

serve

recalled,

March

point

The
Re¬

Treasury, it might
announced

was

1951. There was a
difference in rates in
a

brief period, you
a
point differ¬
but for the rest of

1957,

let

1948

this

take

are

minor.

maximum

much

Dealers

company

the

Christiana Securities

cost.

could sell its bonds
How

market have

much
move

case

TV4

basis points. Now

in substance this 1%

Corporates & Municipals

Laird, Bissell
Telephone BArclay 7-3500

swings

And

rate.

BANK

BLDG.

But

forget

PHILADELPHIA, PA.

and

difference

bond money for a one-year period
can
be offset by 7^4 basis points
the

cost

long-term money.
5.075% money instead of 5% and
any savings are gone.

225

SALEM, N. J.

STATE

Considers Cost of Idle Money

DOVER, DEL.

amount

5.15%,
points.

are

abrupt.

very

Light, for

the

Even

identical

increase

idle

money

should

of M. A.

Hagberg,v. J. d.

Buchanan,
Morong
with

moves

the

bond

110

Mr.

of
Manley A. Hagberg

pal

field

for.,

Buchanan
with

has

him

over

for

4.95%

later

of-130

two

have

firm

fi¬

investment business in

down

side.

Pa¬

$60 million
public and

the

basis

3.65%,

issue

differ¬

points. Or take
issues
and we

Darius Incorporated announce the
removal
of their office from 90
Broad
and

St.,

St., New York City, to new
enlarged offices at 80 Pine
New York City. The firm's

new

telephone

number

Pacific

just

Gas

Electric

3.65%

day short of three months

one

later.

Against

potential
fluctuations
like these in long-term rates, costs
or savings of three to seven basis
points look pretty small. In fact,
the prime
rate has
highest just before

rates,

So, if I

loans

been

have

may

cash

business.
A.

be said that

been

cheapest

summarize
are

reserve

un¬

—

Partners

Bailey

Bailey was for¬
merly with Walston & Co., Inc.

Branum Inv. Co. Opens

with offices in the Life &

Building to
business.

engage

Officers

in
are

banks

securities

cannot

but

help

in the

giving

and

credit

SYRACUSE

Now

Corporation

28th

can

plenty

timing of

talk

Annual

Electric
June

Mr.

Convention

Institute,

these

•••••••••••••

Inc.,

Mon-

financing.

cor¬
con¬

tinue

the

investment

business

great La
elbow

Ives
of

Atlantic

before
the

City,

the

Edison

J.,

1960.

offer

Montagne, Pierce & Co., 422
Waverly Street. Officers are Ed¬

ward

C. La Montagne, President
Treasurer, and Catherine D.
Pierce, Vice-President and Sec¬

retary. Both were partners in the
predecessor firm.

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

may

be obtained in

including the undersigned,

as may

any

of these securities.

any state from such of the several
Underwriters,
lawfully offer the securities in such state.

A.G.Becker & Co.
June 14, I960

—

Copies of the Prospectus

PHILADELPHIA

poration has been formed to

help sell

Incorporated
BOSTON

William

in the nature

Price $13 per Share

1-4176

Casualty

securities

Branum, President; H. P. Branum,
Secretary and Treasurer.

quantity and quality PALO
ALTO, Calif.
of the securities can be sold to
tagne, Pierce & Co.,
liquidate bank loans. We commer¬
cial

the

are

Pierre

and

Mr.

NASHVILLE, Tenn.—Branum In¬
its vestment Co., Inc. has been formed

decline

can

funded additions

high

securities
Norman

Schnebelen.

Exchange

Teletype:

the 130-basis-point change
Form Bailey, Schnebelen
only three months' .time,
namely, from the $60 million issue Bailey, Schnebelen & Co. has been
formed with offices at 79 Wall
of Con Edison on Oct. 22, 1957, at
St.,
New York City, to
engage in a
4.95% to the $75 million issue of

($1 Par Value)

Broadway, New York 6, N. Y.

Telephone: BArclay 7-8800

will

Digby 4-7890.

Established 1909
115

Kan¬

have

Langley & Co.

Mr.

Darius Inc. in

Common Stock

secondaries

Members New York Stock

Mr.

associated
years.

Morong in the past conducted his

mergers

W. C.

been

another

comparable

tax-exempts

financing

New Location

July 23, 1957,

ence

industrials

private placements

years.

been
many

Crawford Corporation

dealers, and distributors of all types of securities.

new

the

Hag'oerg

Co. has been in the Texas munici¬

160,000 Shares

public utilities

Hag-

berg, former¬
ly President

underwriters,

railroads

tives.

offer...
as

new

basis

violent

six months

The

fifty years' experience

the

and

This advertisement is neither

over

are

rep resenta-

•••••••••••••

Jr.

and Merrill C.

ex¬

cific Gas & Electric, for example,

*From

Conversely, how about the cost
of

the

sas City, has
recently been active
ample, brought out a $20 million
in the Texas field.
issue on March 24, 1958, at a yield
to the
public of 4.05%, and 19
months later repeated an identical

Invested

ST.

under

management

own

Florida Power &

room

WHITNEY AVE.

NEW HAVEN, CONN.

160 W. BROADWAY

long-

swings

large, and sometimes

the

moment

municipal bond
departm e n t

when they cost the most.

basis points of in¬

in¬

and the

the

bank

these

present value discounted at 6% of

in interest rate between bank and

Exchanges

Bell Teletype NY 1-1248-49

ZURICH, SWITZERLAND

light

30 years of

just observe that

BROADWAY, NEW YORK 5, N. Y.

WALDMANNSTRASSE

cut in half

bond

payments.
mathematics for

Meeds

Members New York and American Stock

PHILA. NAT L

will be

saving is the

terest

WILMINGTON, DEL.

would

against

before this 1% sav¬
ing is wiped out? The answer in
this

the company

Distributors

BUILDING

increase

long-term rates will wipe out the
one year's saving? Let us assume

the formation of

money

identical bonds at

.Bank and Insurance Stocks

DU PONT

the

can
give, thus, a flexibility in the at 1% less than the current cost
timing of these sales; we-can tide of long-term money. The apparent
a
firm over rough market situa¬ saving of 1% must be measured
tions; we can stand by against the against the higher cost of long-

that

120

the

sold

financing is done.

Bank

therefore, but 3V2 and 7!/2
How small this is in

term

the

How

Texas—Walker, Austin
Waggener, Republic National
Building, have announced

department

issue

and

year

borrowing gradually

chooses to go to the market a company borrows its full re¬
with its long-term securities. We quirement for a year from banks

Underwriters

borrow

basis points.

change in the timing of a forth¬
coming financing. Let us assume

when

Dept.

DALLAS

ments

one-point saving in the prime rate
compared to the bond rate and see
if it
is
sufficient
to
justify a

pany

Mun. Bond

associated

needs

one-

out

the time the differences

But

very

squeeze

ence

money.

Federal

the

and, for
can

bank

between

cost

Walker, Austin

given amount for a year,,
a practical fact, a company

and the cost cost,

money

commercial

accord

between the

increased by the end of the year,

Unlisted Securities

would

company

but

term money that will be encoun¬
tered if bond interest rates have

Primary Markets

period

during the
Savings
year
and
likewise
selling bills
In 1948 we were still coming out gradually as it needs the money,
done
equally
of the cheap money era of the war so that if this is
month by month during the year,
and pre-war
periods. But since
1951 there has not been much dif¬ the firm s requirements or invest¬

healthy

present

situation

which is not too far from cash.

The size and degree
serve

With

•

Thursday, June 16, 1960

We have assumed in these cases

given amount for

to rise.

likely foreseeable

reserve,

than

capital

in¬

are

and

retire loans

about equal and net working cap¬

12-year

vest

the equivalent of about 15
points -on long-term money-.

basis

money.

sometimes

this

Doubts

utility industry's high rate first mortgages, it should consider
of growth and formidable ratio of that any commercial bank would
plant account to gross revenues regard this as a good credit. To
extent

last

would have occurred during 1958,
when government bill rates got as

something
discussing it further.

The

the

gov¬

The greatest cost of idle money

during

would

keeps the industry in the embar¬
rassing position where its current

invest

and

ernments until needed?

able

substitute for unfunded additions.

as a

com¬

time

understood, I thought I might be

financing and not

(

before

cannot

because

the

and

by equity sales. He advises using bank financing

provide plenty of elbow

between

bank

and

things

are

amount

can

bondable additions,

inadequate

are

weigh

ahead

proceeds

cannot do,
supply you low as 1%. A nimble trader might
with the type of money you must have been able to hold cost to a
eventually raise, and we cannot couple of points difference be¬
save you (and
conversely we can¬ tween money cost and the yields
not
cost
you)
any
appreciable from these bills which would have

firm's credit imv

must

however.

bond rate

by way of lending, Mr. Ives says

cases

ing to market.

justifiable

compared to

there

rate

clouding the earnings picture; and
similar factors that financial

'<
is

long-term financing. In making clear what

and cannot do.

the

prolonged

any

By Gerard M. Ives,* Vice-President, Morgan Guaranty Trust Co.
of New York, New York City

nance

proval

Does Bank Money Cost Less
Than Long-Term Financing?

Volume

Number 5960

191

Financing
Companies' Needs

Electric

Passing to preferred stocks, we
a
constructive development

note

By Harold H. Young,* Limited Partner, Eastman Dillon, Union
Securities & Co. and National Chairman, Public Utility Securities
Committee

of the Investment

Bankers Association of

words,

wasted

electric

Some

think it may

ingenuity and
statesmanship.
the

get

good operating records,
ratios and favor¬

that

feel

financial

sound
able

reputations among investors
the doors to the cash

unlock

will

This is not necessarily so.

vaults.
I

see

two

neither

able.

One

primary problems,
which is insurmount¬
that

electric

many

other

because

their

buyers

ers

take addi¬
price con¬
suggestion to the
will

One

behooves

the

some

companies is that they
might
consider
coming to the
market more
often for smaller

larger

com¬

later date other groups

are

principal buyers, study their
likes and dislikes and act accord¬
the

the in¬ they have always offered bonds
with certain provisions, it doesn't
tense competition for funds from
mean
that
they cannot deviate
real
estate mortgages, securities
from the established pattern.
cf other types of corporations and
For instance, some funds would
tax-exempt bonds of govern¬
mental bodies.
Rivalry from the be more enthusiastic about 25than the traditional
latter source promises to continue year bonds
Certain buyers
particularly strong in the years 30-year issues.
ahead as explosive population in¬ would be attracted to bonds with
A

second

creases

public

problem

entail

works

financing

the

all

expansions

good

Industrial

enterprises

sharp competition,

offer

sinking

tutions

kinds.
with

the

pressure

should now find
easing. Among the

companies

electric

common

equity of 36% to 38% falls
in a good average range.
When
the figure gets into the 40's, com¬

stock

mon

one

not

are

complain

adequate

leverage which
of the inducements for buy¬

benefit
is

may

getting

stockholders

they

from

the

ing utility stocks.
At the
of

moment the best buyers

utility

common

stocks appear

pension funds, mutual
funds and private investors.
Life
insurance companies and savings
to

banks
If

the

seem

could

only to
tell

be nibbling.

the

what

stock

Mr. Muhl-

feld

joined

Stone & Web¬

ster, Inc., the
parent com¬

regulatory
authorities,
it
should not be dilatory in present¬

pany,

ing its case.

ing his release
has

idea

dend

cash

to minimize or

way

financing.

stock

buyers — especially
among the trust companies—want
no part of them.
I think it is early

hand,

some

pass

idea

came

judgment finally on this
stocks of the companies

sponded marketwise in
a
way
that suggests
a
spontaneous re¬

mem¬

Webster

financial

Corporation's

Service

department
in
1947
and
elected a Vice-President of

Electra Investment Co.
PATTERSON,

J.~Electra

funds.

will take only

Some insti¬
obligations

protection against call for a

been

ers

may

find

some

to engage

competitive

with
to

conclusion,

the

task

ahead

not be easy but it should be
entirely possible. Companies
should keep closely in touch with

may

potential buyers of their secu¬
rities
and
with their points of
view. Take their wishes into con¬
sideration
and
vary
plans and

the

procedures

tric

by Mr. Young before the
Convention of the Edison

Institute,

28th

Elec¬
Atlantic City, N. J., June

1960.

new

issues

stock

securities.

counter
Albert

Sharpe,

Treasurer; and

Front

is neither an offer to
of these securities. The offer

distribution of
and

over-the-

Officers

Hazel Buegeleisen,

Gas Co.

Jervis.

Miss

been

Buegeleisen has re¬

cently' been with T. M.

Kirsch Co.

offer to buy,

200,000 Shares

HENDERSON'S PORTION PAK,

INC.

Stock
share)

;

Republic Natural Gas Co.
Price

$6.00 Per Share

Colorado Interstate Gas Co.

South Shore Oil and .Development

Co.
Copies of the Prospectus may

Union

Texas Natural Gas

in states in which

Corporation

Class A Stock

WERTHEIM & CO.

New

A.C. Allyn

YORK

;

and Company Bear, Stearns & Co.

Incorporated

York Stock Exchange

NEW

the Prospectus may

Burnham and Company

Unlisted Tlading Department

Members

be obtained from the undersigned only
qualified to act as a dealer in
legally be distributed.

the undersigned is

securities and in which

W >

June 16,

1960.

Mr.

conducting his
investment business in Port
has

is made only by the Prospectus.

(Par Value $1.00 per

are

President and

Vice-President and Secretary.

sell, nor a solicitation of an

Common

Street

securities business

specializing in the

own

offices- at,

engage'in

Sharpe

necessary.

talk

Annual

eliminat¬

advantage.
In

Officers are T.

I note a trend toward

especially as to specified period.

Southern Union

In¬

formed
with offices at 175 Market Street
has

Co.

vestment

securities business.
C. Fry, Jr.!, Presi¬
dent; L. W. Schneider, Secretarying the use of subscription rights Treasurer; and Willy Schneider,
on
the part of some of the com¬ Vice-President.
panies with which they are op¬
tional.
I recognize all the argu¬
Form Investment Co.
ments in favor of a straight public
offering but I just suggest that in PORT JERVIS, N. Y. — T. M.
Kirsch Company Port Jervis Inc.,
some future market where buyers
are not as easy to find, the com¬
an
affiliate of T. M. Kirsch Co.
panies which have consistently
of New York,
has been formed
made offerings to their sharehold¬

ception of the idea.

This announcement
any

was

that

corporation in 1957.

but

pioneering the plan have not re¬

ber of Stone

Frank B. Muhlfeld

investors

Some

tax brackets welcome
dividends.
On the other

He be¬

1946.

avoid common

in the high

duty

stock divi¬
annually in addition to a
dividend may be the best
of

active

from

propounded

been

that the payment

follow¬

Just because

Be flexible.

ingly.

bites.

in general, getting

connection

-this

the

increase

equity ratios.

to levels which seem fairly
adequate
and
many
companies
who have felt under pressure in

pension funds the big buy¬

now,

panies to tailor-make their securitibs to meet their wishes.
-itib
If at

tional offerings only at
cessions.

These are now,

Savings banks have had
ample outlets for their money in
mortgages at good rates.
With

companies

their common stock

appeal.

warrants

credit

these items promise

and

years

utility business.
placements have had big

Private

This difficulty
is particularly acute as to the big
companies, some of which are al¬
ready paying more for their cap¬

depre¬

helpful.
A con¬
siderable
amount of common
stock
has
been
sold in recent

companies have been

than

amounts for

increasingly

putting, large sums An real estate
mortgages and bonds of industries

they really want.

than

ciation,
together with retained
earnings, already have eased the
need for outside financing some¬

bonds at the

insurance

companies have already done so
much financing that some buyers
have as much of their paper as

ital

Increasing

from

in.

thrown

pension funds, both

executives

utility

recent

are

what

moment are
state and pri¬
vate corporation. The phenomenal
growth of the latter is one of the
most interesting developments in
the institutional market in recent
years. It is a break for the utility
companies that these funds have
come
into the market in a big
way
as
soraft, traditional ^buyers
have become much less avid. Life
company

H. H. Young

im¬
that

Home,

offset inflation and the
big emphasis is on growth.
It
behooves
management
to keep
earnings and dividends on an up¬
ward
trend.
If help is needed

ingly

unable or unwilling to
buy common stocks but will be
pleased to buy sound senior secu¬
rities with a run for their money

Speaking in detail of bonds, we
find
the
big buyers of electric

hand,

pression

announce¬

by E. K.

not be attracted by fixed- in¬
securities, as such, and per¬

haps

Buyers'

the

We sometimes

with

Securities Corporation,

Street, New York City.
according to

Broad

President.

might be
convertible securities
that

Vice-President of Stone

& Webster

been

has

Muhlfeld

B.
a

looking to common stocks increas¬

come

Securities to Meet
Needs

Tailoring

require appli¬
task

utility is

may

saturated market.

tunately. I

average

cardinal princi¬
ple of good investing, favors en¬
terprises and agencies whose se¬
curities do not already have
a

Unfor-

cation

the

diversification,

auto¬

matic.

offering induce¬
options —

stock

position to consider but
this gives an idea of the competi¬
tion.
In all of this, the urge for
in

not

and

such

something

routine

accommodations.

even

are

ments

promises

believe

elected

Van

companies. This

in vogue in

Securities Corp.
Frank

ment

years.

paid for money. Unregu¬
enterprises can afford
to

liberally for

pay

I wish
say

been

not

•

mind that investors are

Bear in

sale of this type
has

Stone & Webster

demand for utility common stocks.

the

done

needs

could

industrials, are
turning
to
sound-value
utility
stocks. Briefly, there seems to be
at
present reasonably adequate

good time to give thought to
of security which

investors, shying away

over-priced

from

—notably debentures or preferred
stocks.
Such securities tap a siz¬
able field of new buyers.
They

in the next
decade.

bonds of the same
is

against

lated

large

capital

yield

spread

the rate

permanent fi¬
nancing of the electric utility in¬
dustry's

preferred stocks. Provisions
the law are complicated and

companies are affected the
same.
The net result, however,
has been renewed interest in pre¬
ferred
stocks.
Some have been
sold at less than the traditional

investment banker utility

for

outlook

the

that some

not all

companies' heads some

My views are those of an invest¬
ment banker, the middleman, as

that utility stocks as a group
appear exploited although
some
individual ones look high.
There
are
definite
indications

Muhlfeld V.-P. of

not

buy

specialist offers
thoughtful advice on arranging permaiient financing of their capital needs. Some of the topics discussed
include: overcoming the problems of a saturated market and intense
competition for funds; importance of flexibility in meeting big buyer's
needs; keeping proper common stock equity ratios and earnings and
dividends on an upward trend; and reservations about stock divi¬
dends and the elimination of subscription rights. Mr. Young surmises
a reasonably adequate demand for utility stocks exists at present.

With

tax

application, gives life insur¬
ance companies an inducement to
of

pearls
I can

say

its

America

going to be, I

gratuitously.

wisdom

in the passage of new
legislation which, in

year

Federal

are

would not be offering here

and Convertibles

last

trends

market

Opportunities for Preferreds

Timely Advice

(2585)

Commercial and Financial Chronicle

The

Walston&Co.,lnc.

(2538)

The Commercial and Financial Chronicle

higher

Whither British Equities
And Rates for
In

answer

and

business

the

rhetorical

question

sterling will take,

outlook

exactly

Dr.

what tendency

Einzig knows that the

promising as

Government is prepared to turn tough in the
should weaken this year.
fear of
the

inflation

boom,

present

may

and

the

-for

World

and

it to close to

cause

when

the

that

Britain

since

needs

abroad

whereas foreign sterling balances in London have

she

has

have

hands

declined

take

greatly increased.

for

the

London

1726,

the

attitude

extent

Londoners

true,

evidence

selling

the

London.

are

idle

show that Americans interested in

British

industrials

are

the

look

same

general

Britain

Government's

business

attitude

far

spite

restrictive

tof

measures

the

extension

view

indeed

prosperous
and

The
to
felt

itself.
result

IV2%.
few

been

has

areas

existing
more

economy will now
for the reduction
Such

the

last

reductions

sion
the

1957-58,

the

argument that

enough

spiral.

turn

means

overtime

all

pay

rates

wage

there

for

change

to the

conceded

addition

are

past.

For

higher
during the

pressure

for

be
of

watched

anxiety

Reeves

Soundcraft Corporation of
Danbury is the manufacturer of
the the magnetic video tape being

that

quite

the

British

of 800 square miles.

area

flattened

out

before of Cuno
by AMF.

face

this

take

situation

the

line

some

that

keep

such

relatively

What

reserve.

views

situation

small

those

overlook

well afford to
on

time

British

have

run

electronic

that

will

In the

investments

declined,

while

greatly

increased.

Nor

■

'• :

construction

85-acre site at

abroad

Hartford
ment

acquire

controlling in¬

the terest in the Excelsior Life
Insur¬
ance Co. of
Toronto, Canada. The

purchase

proximately
any

price

will

$5,250,000.

ap¬

Under

terms of the agreement Aetna in¬
tends to buy
55% of the com¬
It

25,000

also

other

outstanding shares.
negotiating to buy an¬

15%

the

stock.

expand

rapidly

omy.
'

•

growing

econ¬

Channel

TT"

the

purchase

Geometric

officials

will

chucks
will

Company of
purchased the
product
line
of

has

New

said

Copies of the Prospectus
other

dealers

Myron
39

be obtained from the undersigned and
from
lawfully offer these securities in this state.

may

that

acqui¬

broaden the variety of
now
manufactures and
continued

assure

of Horton products.

availability

Sales and

en¬

gineering operations of the Horton
line

will

transferred

immedi¬

ately to New Britain and
the

125

also

Horton

the

headquarters within
'7

The

Casco

Lomasney

Broadway, New

York 6, N. Y.

BOwIing Green

9-3120

Co.

will

Skinner

few weeks.

sis

acquisition of 66%

terest in

some

employees

shifted

stock

Products

in¬

Coip. of

Bridgeport has been announced
by Standard Coil Products Co.
The stock

Cone,
share.
make

the

was

acquired from J. H.

Chairman,

$10.15

company
plans
to
similar offer to purchase

remaining

outstanding Casco
price. Casco is

same

manufacturer of automobile

cessories
ances

and

small

home

electric

ac¬

appli¬
t

e a m

tools, and elec¬

power

heating pads and blankets.
*

Sherman
the

including

irons, hand
tric

The
a

•

Knapp, President of

Connecticut

Light

Power

Co. has been elected President of
the Edison Electric Institute. Vice-

President

the

Institute

since

last

States Power Co., as head of the
association of the nation's
investor
owned
electric
c o mpanies. Mr. Knapp is also a Vicetrade

Hartford

Yankee

and

Director

Atomic

Electric

Co.,

which is
New

owned by a group of 11
England utilities, joined to¬

gether to construct the area's first
a.omic

electric power plant.

1
X/7

Primary Markets in

CHAS. W. SCRANTON
Members New York Stock

CONNECTICUT

CO.

Exchange

New Haven

Haven.

such

division

President

Pay-TV in Hartford has been
cleared by the Federal Comunications Commission
through its
TV

business

;

June, he succeeds Allen S.
Aetna, King, President of Northern

••

authorization

its

chuck

Skinner

Aetna Life Insurance
Company of
has reached an agree¬

foreign

Chuck

Greenfield's

shares at the

Canada's

Value $.10)

per

■:

COMMON STOCK

Price: $5.00

controls,
a

Bristol.

mean¬

does

with

300,000
foot plant currently under

square

desire
■

Esquire Radio & Electronics, Inc.
(Par

connection

Britain

manufactures

electric

President, Henry S. Beers cited
'

and

$10 million.

Skinner

sition

the proceeds of the stock

use

since sale in

the gold stand¬

shoestring.

;

* '

which

company,

who

has : changed

Superior Electric Company of
Bristol : recently sold
156,000 $1
par shares
at $12 a share.
The

-150,000 Shares6

subscriber

"...

The

Horton

pany's

Cuno

an offer to sell or a
solicitation of an offer to
buy
of these securities. The
offering is made only by the Prospectus.

purchaser is

Zenith / Phonevision

Corporation of Meriden, a pro¬
of ducer of industrial filters and cig¬
most arette
lighters, and
American

announcement is not

Long

•

the relative position

has

the

test

cost of about

New

keeping with the British tradi¬

ard

securities

RKO General
Zenith Radio Corporation

Inc. and

United

The

formed

Engineering

June 16, 1960
" %'

unit,

Horton

should Directors
v

New Ts?"**

Phonevision.

prepared

the

Road.

Beach

hold

Calif.—Arnold Ru¬

engaging

business from offices at 2457

City, members of the

with

total

This

beck

Street,

the

sterling balances in London have
to

Broad

OCEANSIDE,

now

the tendency

of .pre-1914 days when Britain |could

part

Doukas

The plan, sub¬
really satisfactory ject to ratification by Cuno share¬
level.
Compared with the West holders, calls for the
exchange of
German gold reserve the British 0.443 shares of
previously author¬
gold reserve is far from adequate.
ized, but unissued, AMF common
Not
only Germany but also shares for each share of Cuno
France and even Japan are show¬
common.
ing more satisfactory increases.
.■

tion

Exchange.

Connecticut Brevities

convic¬

if
sterling
..A • :

it has reached

gold

the

Co.,

York

firm4 has

the

■

reserve

spread

Stock

Arnold Rubeck Opens

partner in

sterling is not as strong as
people in this country would like Machine &
Foundry Co; have ap¬
it to be. The increase in the
gold proved a plan for the acquisition

dismissing

past year.

scarcity of labor. Any addi¬

Even

the working day at one and
onehalf times the normal
wage rates.
It is simply another form of
wage

increase, in addition

tough

the

that

for

1957

weaken.

quarters

limited

scares

the

know

now

not

now

work

Droulia

Kimon

16th

become

method

York

New

there is

should

instead

But

some.

resump¬

work

measure

workers

enough work for all
all

basis

sterling

Government

indus¬

mean

sterling will

lators

for

scope

have been conceded
largely under
the influence of the mild reces¬

among

still

much

basis

The

will

season
approaches.
It used in the TIROS meteorological
unlikely, however, that we satellite. The product, which rep¬
shall witness anther sterling scare resents five
years of research, is
this year.
The domestic situation in use in a
wide-angle lens re¬
is well under control, and specu¬
cording system which scans an

industries

number

two.

existing

relatively high, in most
industrial districts there is
now an
acute

year

where unemployment

the

autumn

in¬

Droulia & Co. Admits

seems

capital

that

some

point

the price
working hours during

that

reached, with the
unemployed down
though there are

pay

Even

completed.

still

the

overtime.

Gov¬

now

are

rightly

inflationary

employment
less

quarters

equipment, but it will

afford

trend

figures

expansion
tries

very

the

business

the

proportion
at

cannot

official

would

tion

care

boom
Full

the

that

this

Admit to Firm

their

main

somewhat

first time since

modernization

programs

There

turnover

feels

leave

take

would

drop

supposed

matter

are

their

near

tion

From

the

increases

rising.

trouble

ernment

with

year,

profits

have

the

was

time sterling dropped
during the spring when

weakened

very satisfactory, but it will
take
time
before
the
projected

point

would

admit

short

below par

equipment.
further expansion
come through
the

and

vestment

upward, espe¬
cially in the capital goods indus¬
tries. If left alone, British busi¬
ness

for

will

partnership.

WASHINGTON, D. C. — On June
23, Sherwood F. Webster will be¬
come a partner in Sade &
Co., 905
Sixteenth St., N. W\, members of

sterling
New York Stock Exchange.
repetition
of the autumn sterling scare.
Its
prompt recovery has produced a
reassuring effect, but the fact that

are

trend
continues.
Even
in
instalment financing the effect of
those measures is
merely a slow¬
ing down of the advance. Other

too,

have

equipment.

ing

indices,

number

fears

some

Stewart to

Sade Co. Will

pay

This

recent

caused

any
considerable
output through a

the

any

the

various
expand¬

the

it is possible to ascertain.
By it¬
self the business outlook is
prom¬

ising.

expect

would

out¬

exactly
and so is

that

means

New

The

see

industries

most

utilization

Most

before,

better

buyers rather than sellers.
But

not

increase

balance

working at very
capacity, this time it

seems

the

July

Robert M.

Midwest

and

The Question About Sterling

now

changes,

John A. Kemper
To Admit Wood

why unemployment per¬
sisted in Italy for so long after it On June

The

many

the

gold

present.

reason

is another period of stagnation or
decline in the output. And since

firmer

which

average

the

by putting on the
only question is to
what degree they will
apply the
brake, and in what form.
The

has

needs a great, PITTSBURGH, Pa. — Moore,
than she has at Leonard & Lynch, Union Trust
Building, members of the New
York and
Pittsburgh Stock Ex¬

Britain

Stock Exchanges, on June 23 will
periods ; em¬
overtime to admit C. Franklin Wood to part¬
staffs rather than nership. •.

existing

employees;

choice but to

First

idle

prosperous

their

labor

brake.

there

fact,

labor.

new

increase

try to check the demand for addi¬

American

favorites

American
than

cheerful, and

with

last thing they would like to

Wall Street, too,

econ¬

available.

tional

in the outlook.

agreements

authorities have

For, apart from it, there has
been no basic change in the situa¬

become

the

ac¬

ties.

In the circumstances the British

counts to a large degree for the
change in sentiments towards equi¬

tion

manpower

towards most things was liable to
be affected
by the weather.- This

typically British characteristic

overload

the

would

very

Trade Unions but also through the
competitive bidding by individual declined in most other countries.
employers
for
the
inadequate

Already Voltaire
when he arrived in

it,

the

result

better.

noticed

which

distinct turn

ployers prefer to

tion

during

omy would mean a stepping up
of wage increases, not only as a

Exchange has taken

that

deal

costly rate. LIMA, Ohio—John A. Kemper &
Experience in Italy shows that Co., 121 West High St., members
such a system discourages the in¬
of the
New York

before Whitsun the London

Stock

alternative to paying

off

beginning

War.

deny

em¬

is doing badly it is
penalized by having to
on its payroll unnecessary

them

LO N D O

N, England — With the
improvement of the weather just

the

firm

carry

degree the damper

gold than

investments

from

But

further

unlikely event sterling

some

employment is under¬

secure

ployers' point of view any meas¬
ures
against dismissals, such as
the payment of heavy compensa¬
tions, would simply mean that

British

that

pressure

standable.

general

and

Moore, Leonard Co.
To Admit Stewart

Yet, he also knows that the Government's

particularly

—

before

show
steady surplus as between
the end fit the .Napoleonic Wars

such

By Paul Einzig

equities

British balance of payments

wages and shorter hours, a

has just begun to
prevent
dismissals
through
rer
dundancy. The desire of workers

new

Sterling?

Thursday, June 16, 196Q

SECURITIES
New

York—REctor

Hartford—JAckson

2-9377

7-2069

Teletype NH 194

i *

Volume ,191

Number 5S60

The

Commercial and

Financial

Chronicle

(2587)
We

ress.

-to-

still

poverty,

have

instances

ties foreclosed

pockets

growth in terms of the aspirations
and desires of the
people. Further¬

opportuni¬

unnecessarily, and

other economic problems. All of
these problems are real, many of
of them are important, and a few

Price

our

confidence

Stability for Economic Growth

lack

century,

and

finds

its

growth

exaggerated

and

not

are

slowing down;

and

The

story of America's economic

able

of history.

pages

level of

terial

ma¬

individual

well-

being

endeavor.

short, our economic growth has
brought us more and better means

satisfying our wants, and it has
also
brought us better wants.

,earlier, .and
not more than

dreamed
even

Our

parts

level

taken

still

humanity is to live
out
their
lives
in
toil,
filth,
misery,
ignorance, and disease.

material

Even

liv¬

Dr.

Allen

Wallis

ing, though
dramatic, is far from the most
important part of the stqry of
American

economic

other features
nificant:

benefits

are

first,
of

for

lot of most of

Unparalleled
-improvement
of

growth.

even

the

Two

sig¬

non-material

the

greatest civilizations

of the past—these that

mcst, such

Ancient

admire

the

diffusion

and

all

We
to

Greece,

or.

not

itself.

only

by consuming
by working under

better but also

better

conditions.

Most

for

man

living

meager

nec¬

make

has

even

dis¬

now

appeared.

our

efforts and to engage more

richer

variety

cul¬

tural and recreational pursuits. It
made possible higher levels

has

of education and enlarged
oppor¬
tunities for
creative
activity. It
has
open

greatly
to

represent,

Nixon

told

Moscow

television

summer,

the nearest approach to

audience

last

classless society.

widened

the

and

our

well

review

the story
growth, not in a

economic

spirit of smug self-congratulation,
but in a spirit of
humility. What
tend

take for granted,

average

the

choices

citizen,

and

which

all

social

and

economic

developments inevitably
is

services

constant

lever of

even

risen,
part

could

economy

amount
to

and

time

produce

and

output

are

confession
than

Growth

1,500

St.

Augustine
ago about

years

it; but what it is that I
I do not know."

balls.

Evolution

Six of the most

.of the volume of output.

economic growth are the
centage rates of increase in:

(1)

composition
free

conforms

Similar¬

the

choices

made

market, and public output to
choices
made
through
political
processes by freely elected repre¬
In

centralized

authoritarian

extent

"growth"
ized

valid
which

nominal

the

growth

countries

given

nuts, bolts, cloth, appendectomies,
tractors, missiles, financial writ¬
ing, and speeches. To measure the
list by a
sary to

single number it is
put

value

market

ple

voluntarily

Even

our

and

pay

sue

economic
wise

progress

and

labor

valued

only

used up.

thing

terms

less.
The

magnitude of the valuation
problem is shown by the compar¬
atively simple problem of compar¬
ing Russian GNP with ours. The
two lists of products must be valued

by the same prices, otherwise the
comparison
will
reflect
differ¬
ences

prices,

not
If

GNP.

just

Stock

Exchange
Midwest

American
Stock

Stock

(3)

between

times

for

are:

Aberrations of averages, and
Treacheries of timing.

(4)

About the deficiencies of data I
will

prices
applied to their output and to
ours,
our
GNP
is
nearly
four
are

theirs.
If American prices
applied to the outputs of both
countries, we are only twice their
are

Russian

GNP

40%

from

but

commonly

splitting the differ¬

the

difference

tween

27%

Rnd

53%,

which

little,

say

except

that

the

average

separate

PUBLIC UTILITY
.

culture

the
are

than

economy

true
of

economy

even

—

are

for
the

involve

this
best

liberal

country
in
use

the

even

the

(both

Russia). The

Continued

Copies of the Prospectus may be obtained in any State only from such of the
undersigned and others as may lawfully offer these securities in such State.

Telephone:

NY 1-911

Kuhn, Loeb & Co.

Teletype:

HAnover 2-7900

PER SHARE

RAILROAD

BROADWAY, NEW YORK 4, N. Y.
>

$42

June 16,1960.

half

things

average

tween the rate for agriculture and

PRICE

even

growth
for
the
whole
will be half-way
be¬

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

OFFERING

every

these

The

other

Exchange

SECURITIES

are

declining. To see that this is pos¬
sible, suppose that a country has
half of its economy in agriculture,
and that growth is slower in agri¬

production
ours

part is constant

rate

This advertisement is not

MUNICIPAL

Averages Can Be Tricky

($1 Par Value)

INDUSTRIAL

that

es\irn,^tes of Russian GNP
percentage; of ours.

Common Stock

This

ours.

split is not between two and four,
would give three, but be¬

basic figures on GNP or industrial

Exchange

Brokers in

differ¬

Russian

The Brush Beryllium Company

MEMBERS

some¬

for- preserving
and cultivating the forces of
prog¬

York

things

no
means
guarantees
equal value is created;
sometimes it is more, too often it

that

435,182 Shares

New

But just using up

policies

Vilas & Hickey

the two

(1) Deficiencies of data,
(2) Vagaries of valuation.

world

pur¬

accept.

large and increasing share of out¬
put is governmental, and can be

past

can

peo¬

however,

economy,

may
we

item.

by prices

progress,

fact unique in history. It
well prove transistory unless
understand the sources of our

neces¬

each

economy,

value most things

ence,

personal

rates

between

country,

meaningful

have
list of

The

to.

things
produced
includes
such
heterogeneous products as apples,

described

man-hour

disposable

compare

—and

problem

alluded

which

Real

central¬

achieved

economy

of the

valuation

Averages can be tricky,
and
us
consider certain major short¬ every one of the growth measures
is an average of divergent rates
comings that seriously limit what
any of them really show.
These of growth prevailing in different
ubiquitous
flaws,
which
create parts of the economy. It is pos¬
troubles
for
anyone
trying
to sible, for example, for the overall

econ¬

decisions.

criterion

The

already

income per capita.
Before considering what each of
these gauges appears to show, let

authorities, and the values
placed on goods and services also
represent

I
thought a
but it is nevertheless
hardly better than conjecture at
many crucial points.

size.

(5) Output per unit of
capital combined; and

the

There is

too, that it is

you

than

ago;

results

and

both private and public out¬
put reflect the choices and values
of

for

worked;

(6)

better

month

Output

the

sentatives.

adjusted

(4)

per

know, and

lot

times

Prod¬

Industrial production;

people, and
the valuation of the output re¬
flects the values placed on goods
and
services
through voluntary
purchases and sales. Private out¬
put

National

(3)

of output reflect the

choices

Gross

per¬

Real GNP per capita;

changes in the

economy,

Real

uct, that is, GNP
price changes;

all the people.

among

gauges

(2)

tion of output is as much a part of
economic growth as is expansion

our

common

composi¬

the

approximation
and
adjustment.
With respect to Russian data, I
now

ences

meas¬

cannon

stereopticons, and

surreys,

the concept of time ought to be
repeated daily by all who purport
to measure economic growth. "For
so it is, oh Lord
my God, I meas¬

meaningful sense must mean
not just more things,
but more
things that are useful and that
people want.
Today we produce
such things as automobiles, tele¬
vision sets, and missiles, instead of

sp e c

impossible to quantify.

ure

all.

effort

that

non-material

growth

rising levels of per capita
output if it is to mean increased
not

grow¬

measuring growth is
fearsome. Not only do we lack
adequate data, but the qualitative

volve

our

declining.

problem

without adding to individual wel¬
fare.
Obviously, growth must in¬

this

If the concept of growth is com¬
plex and elusive, as I have been
trying to indicate that it is, the

out¬

world power—

take

though output per capita
stable, if at the same time

were

eco¬

needed

have

as-

produce

even

needed

omy,

has provided to regard as the natural and in¬
enjoy the fruits destructible state of affairs toward

with leisure to

systems,

Vice-President

growth

fully

economic

Economic

and

perhaps

the

formerly

brutal physical toil
essary

define

An economy may get bigger
"grow" in an absolute sense,

—or

uted

perspective of other contemporary
in

end

do not live to grow; we grow
live better. And we do, live

not

put.

comparative handful of peopled A

ma¬
ern and western. Viewed either
by
benefits the
perspective of history or by the

the people.

better,

goods

maintain

unique feature of our economic
growth has been the broad shar¬

both

non-material

Growth is

measure.

Italy^r-the flowering ly,^ growth is to be meaningful
p^ci^i]j?aj;ion was,shared by onjy a 'the output must be well distrib¬

economic

broad

Renaissance

growth, in ing of progress among all
groups
the form of improvements in the
—urban and rural, workers and
quality of our life; and second,
managers, white and colored, east¬

terial

difficult

our

ure

granted, as it is taken
for granted in
many parts of the
world today, that the inescapable

rising rapidly.

levels

nomic
growth as an
increasing
supply of goods and services. This
is all right as far as it
goes, but
it doesn't go very far. As
popula¬
tion increases, a larger supply of

But

Throughout history it has been

this high

chosen

capacities

the

difficult

only goods

growth in the form of leisure and
improved working conditions.
In

any

world.

And

efforts

not

but non-material

have

were

Growth's

Dispersion

.the

Economic

consider

tive

the

welfare.

today in

most

from

growth must refer
This means

pects 'of growth.

ing

results

Generally, people think of

un¬

dreamed

and

must

growth

him vastly increased

dignity

growth

estimation, and guesstimation,1 of
interpolation and extrapolation, of

economic welfare.

one

distributed

Clearly, true
to

second

fact,

and

for developing and
utilizing his individual capacities.
It has given new dimensions 'to

enterprising people have achieved

oversimplify them. .Economic

opportunities

A free and

being

benefits

all.

confuse

lack

confusion

compares

pinpoints ten essential

it has given

of the most remark¬

one

with

not

witn

Economic -growth is

steps the government should take to assist growth.

growth is

the

not

economic

widely.
Total and per
capita output can
rise, while the living levels of the
masses
are
rising little or not at

catch-phrases of the day. Behind
the phrase there are, to be sure,
real
and
important issues;
but
they are not simple issues, and

definitional difficulties in
measuring and comparing economic growth;
takes the best of our statistical data to
show, contrary to allegations

made, that

perfection

centralized

and services

unfavorably with West Germany, Japan and Mexico and even that
under the Czars in the decade
prior to World War I. In a vigorous
defense of economic
liberalism, he says any departure from our tradi¬
tional way of meeting "unmet social needs" is
but a device to social¬
ize the results of
production in place of the failure to socialize the
means
of production.
Dr. Wallis reviews the
methodological

need

What Is Economic Growth?

economy well not overtake, us in the visible future—at least not in
this

progress,
rate.

Economist to Vice-President Nixon
strongly rebuts basic arguments
posed by our country's "neo-mercantilists" to
justity their authori¬
tarian prescription for economic
growth. Dr. Wallis claims Russia's

authority

urgent. But we can tackle
problems with more zest and

are

By Hon. W. Allen
Wallis*, Special Assistant to the President
and Executive
Vice-Chairman of the Cabinet Committee on

with

more,

McDonald &

Company

page

The Developing World of
Trade and Investment
By George OImsleJr* President, International Bank, Washington,
Z>«
President, Financial General Corporation

already

world

ment

the

must look at the world

United

States

principally

has

been

the
we

One

must
is

Canada is rich

resources,

applies to our

take

must
George Olmsted

field,

the

area.

natural

industry, we see how the
opening of the fields in the Fort

gas

St.

John

alone

area

construction

spurred "the

Canada's.

first

natural gas

and

dollars

railway; it has meant
growth

and

big

and

pany

ber

Limited of Vancouver, D. C.
speech he made last Novem¬
at

the

Twelve

Resources

Conference,
clared:

slowly

Mr. Turner also de¬
"There is no doubt that

but

interest

surely

for

American

the

oil

center

entire

North

industry is moving

northward

from

American

areas

Tulsa

and

other

Calgary, to
Edmonton, to Dawson Creek, Fort
St.

John, and maybe

north.

feel

even

that

farther

eventually

States

thing

double the size

sia.

the

are

largest remaining
outside

resources

Rus¬

the

leading producer of
pulp and paper in the free world,
the

and

second

largest

producer

of lumber.
The

ranks

that
in

world

should

Canada

energy

will

There
of

and

resources,

that

million

friends

abroad

trade

the

know

the

key¬

Canadian

econ¬

tion

and

and I

number

make

families

will

about

tion,

while

third

three out of

the

of its

total

take

produc¬

providing jobs
for
every eight workers?
products

Downtown
will become

areas

big

cities

crowded, urban

will have to be stepped
modernize outdated areas.
Industry
decentralization
will
be accelerated,
and more farm¬
renewal

will

land

converted

resi¬

grade
schools
will
be
provide for six million

children,

more high schools
million more teen-agers,

four

colleges and universities will

have

take

students

from
6.4

the

Fourteen

ment

in these

70%

enrollment

present

3.7
10

million

goes

million
years.

workers

civilian employ¬

added to

to make up

the 83.4 million
must have to
the nation's need by 1970.

civilian
meet

care

their

million

will be

use.

needed

little

farms,

forests, and mines shipped abroad
in raw or finished
form, Canada

cars

1970.

and

crowding the
highways, bringing the
90 million vehicles by

total up to

product,

will

sell.

Twenty-three million
trucks

jobs

think

look at

just

confident and add to the
of the summer

progress before the
traditional summer rally
is

officially declared over.

getting

chances

can

from

see

rally

peak posted

and

even

some

the

which

the public utilities where growth
ultra-basic steel mills was. is
steady although not star¬
operating has been unduly tling.
depressing on the market.
Fairmont
Foods which is
Large inventories were built relatively immune to cyclical
up, and not worked off, dur¬
swings has lolled in a range
ing the steel strike of late last of not quite five points so far
year. And while it would be this
year although it offers an
at

pace

normal for the steel
whittle

ers

inventories

consum¬

above-average yield of around
at their 5%. Fairmont has been whit¬

away

strike

the

once

settled,

apparently this
went on longer than the mar¬
ket analysts had anticipated.
Industry statements were
confident ones, although leav¬
ing room for possibly another
was

lull

before

the

dol¬

summer

tling its less profitable lines,
while expanding with
its
spare cash. So there has been
no
growth in sales to capture
investor

interest.

other

hand,

hasn't

resulted

its

the

expansion

stock

any

earnings dilution. In fact,
drums can be counted over,
per share earnings have been
but anticipating a good fall
growing steadily and the divi¬
pickup. As far as the steel dend has be^n increased each
shares were concerned, they
year smce 1955.
weren't obviously popular
Fairmont's declining sales
until more concrete evidence
picture has obscured the fact
is at hand to show a good
that since War II, the firm has
pickup in new orders.
shifted product emphasis im¬
portantly and the low-profit
Autos similarly were large¬
items that produced 70% of
ly neglected until it is clear its busmess have now been
what effect the
widespread
supplanted by high-p r o f i t
demand for the compact cars
items to where they produce
has had on profits. The small¬
three-fourths of sales. And
and

barren units acb

the company has bowed into
have less profit the leisure food lines and
potential than the more lux¬ seems headed toward the
i 11

d 1 y

urious

cars

the

standard

frozen

food

ones

its

lines.

stage of diversification.

this

page

by the

industrial

average
on
this
largely a seasonal
phenomenon with the only year's second trading session.
*
*
*
change in the news to bolster
The concentration on issues
the market coming from pre¬
liminary evidence that the where sharp gains in sales
persistent decline in the steel and profits have been show¬
operating rate was, if not bot¬ ing was a market facet again
toming out, at least leveling leaving abandoned some of
off.
the better statistical bargains
in such basic lines as
food,
Steel Outlook Mixed
was

sf«

few of the signposts

Continued

eclipsing the

near, or

all-time

greatly expanded markets
for housing, food, clothes, lumber,
recreation,
travel,
home
appli¬
ances, and nearly everything you

omy? Do its friends at home know

national

create

that exports of goods and services
account for over one-fifth of your

With

million

nearly 62 million.
Spectacular rises in the popula¬

and

foreign

gross

and households will go up another

for

210 million Americans
1970. The number of families

high in manufacturing.

stone

the

greatly

us,

also

world

that

changed.

its

will

dential and industrial

outside

told

by 1970?
be sure about

ahead

States

United

into

ran

The

we can

look

bound

stores

Prospects

changes will there be in

United

liv¬

It is the third largest
producer of grain in the world. Its

through
since World

passed

What

Europe.

the Westcoast Transmission Com¬

one

Its

resources.

than

leader

Canada is

the

greater

War II.

streets and

Lloyd

Vice-President

with

few

years

has

the
world.
It
is
the
largest
country in the world after Russia,

wealth in royalties and land sales
for
the
province," according to

Turner,

They

timber

south

spectacular

and

population

than the

ing standard is the second highest

dreds

Canada; it has resulted in the
completion of Canada's first north-

in¬

the

familiar

vegetable

forests

millions

interest

era

even

needs,

the world's fastest growing coun¬
tries. It has vast untapped mineral

River

new

capital it

beyond its borders.

become

pipeline; it has meant
industries for the Peace
area;
it has brought hun¬

large

the

following facts:

one

patience

courage,

must

vestors

applies to the great Pacific
just

take

effort.

attract

Canada

for

granted Latin
America, and

vision,

Canada

new

reaching a critical breakout
opposition this point on the upside. With
week but without chilling the better action in this quarter,
enthusiasm
that
anticipates the chart followers would be
The stock market's strong re¬

that it is

see

expansion

10
To

certainly

will

however,

these

into

trends

possible to

One

AND YOU

...

pro¬

product

this peek

threshold

the

the coming

development

endless

and

overlook

The

money,

national

tendency

power

these natural

greater volume in

years.

This

concept.

and

life, and more
foreign trade.

growth

which

that the world will need

resources

de¬

national

the

first

water

and

Canada Prospects

concept
in
place ;of a
Europe

the

agriculture,

industries,

mean

conveniences

national

well.

world

total

has

world

great interest in Canada's oil re¬
sources
and
in
its
lumber and

minerals,

develop

free

food,

Just from

will

the

All

course,

by 1965, $50.2 billion by
1970, and $76.1 billion by 1980.

pivot on re¬
north of the 49th parallel."

sources

move

billion

industry

the

Gross

fishing

now

this

which

ancestral roots.

our

things

in the
oriented

Europe,

back to

stems

thinking

our

Canada is expected to rise to $39.9

exaggerated views held and notes that Canada's $1.7

past

for

duction for

pared to the Japanese.
the

people,

luxuries

billion
exports to Red China is little over one-half of what it sells to Hawaii
alone. In one of his many area analyses he observes that U. S. finan¬
cial interests are slow in responding to Alaskan potentialities com¬

20 years. Popu¬

present 18-millionmillion by 1965, to

19.5

homes,

mand

planning and action." Discussing East-West trade, Mr. Olmsted criti¬
cizes

the

great market that calls for a whole new concept of thinking,

Thursday, June 16, 1960

BY WALLACE STREETS

million in 1970, 23.9 million
by 1975, and 26.5 million by 1980.

ring to the new concepts in international financing, the banker em¬

trade

THE MARKET

the
even

21.6

States, and the accelerated changes in trade and invest¬

from

plus

opportunities no longer confined to traditional areas. In refer¬

has

The
experts
point
to
great
growth in the Canadian economy

phasizes that "isolationism in financing has become as obsolete as
as

nation

believe

lation alone is estimated

rapidly developing trends in Canada and

political isolationism" and "businessmen

leading

trade.

opportunity to become
greater factor in world
the coming years.

Mr. Olmsted examines the
the United

Chronicle

The Commercial and Financial

(2588)

But

before

the

hesitation

The

airlines, despite fare
Dow industrial
increases, and booming travel,
had retraced approxi¬
have had little following with
mately two-thirds of the path
set

in,

the

average

All

these shares having

been sold this

announcement

appears

matter

record

only.

investors

fell

whose

interest

has

early this year. Last
been
concentrated
on
the
gain, at least as far as
heavy expenses of shifting
average is concerned, was
over to
jet planes rather than
of the sharpest in history
the

week's
this

NEW

ISSUE

June

13, 1960

one

and, by other measurements,
the

was

269,000 Shares

largest
:'fi

Megadyne Electronics, Inc.

all

sjs

(Par Value $.10

per

Share)

several

:|s

surface

this

indication

that

there

plenty of investment
available if the

Common Stock

years.

The

that prices

still

owners

think

attractive and

that the investment climate is

deficit of

Glenn Arthur Company, inc.
wew York 4, N. Y.

profit

minor

period
more

period last
more

vear.

than

stock
points

But the
dozen

drag on the list was an
story. That is the inability Interest Stirring in Bank
of the rails, even in the face'
Insurance Stocks

of much
merger

talk of which
portion is acknowl¬
edged to be real, to get going
a

great

The

recent

research

cians

tion

rails

faltered

discount

cut concentrated

convincingly. To the techni¬
the

than

million dollars in the same

higher last year. At its recent
denrpssed level, it offers a 5%
yield.

Drag

The

)

unseasonal

old

Underwriter

the

and show

the

against

sold

Rails Still

Broadway

during the first third of the
year

are

Ameri¬

Air

Lines, the giant of the
.domestic carriers, was able to
post a 30% boost in revenues

for
money

good.

favorable aspects.

can

and

rate

considerable

department atten¬
stocks but,

the bank

Volume

191

Number 5960

The Commercial and Financial Chronicle

(2589)

far, without whipping up earnings from some of the dividend has been increased
in the way of enthusi¬ new ventures
in nine of the last 10
perked up.
years.
*
❖
*
asm.
Bank of America, the
[The views expressed in this article
colossus of "department store
Avisco specializes in joint do not necessarily at any time coin¬
cide with those of the "Chronicle."
banking" is still available at ventures, apparently, having
so

much

15% discount from its operations in which it is
high for this year. Yet its teamed with Monsanto in
earnings are improving and nylon and acrilan; with Puget
heading toward where a new Sound Pulp in a pulp opera¬
some

record

should

for

set

the

tion

and

with

Oil

Sun

And while this is plastic corporation. The stock
largest' private of Avisco in any event is
bank, it shows no signs of let¬ available at a discount of a
world's

ting up on its expansion, hav¬ score of points under
ing opened 18 new branches year's high.
so far this
year with another
Prospering Gillette
25 slated to be
opened before
the

is out. At the

year

its

ment

branches

fabulous

The

yield

bracket

runs

that should

come

ing earned twice
_

close to be¬

benefit from

known

line,

and

razors

blades

including its new blade
being promoted vig¬
orously. Actually, Gillette is
important in hair prepara¬

which is

over.
*

companies also
as
standing to

cited

were

682.

best

the shift

in the

with

tions

with

ing

life

mundane trad¬

far

1960,

its

range not quite stretching to
a dozen
points. This company
—one

of the few available in

listed

trading—like other cas¬
ones
seems
to have
reached, or be on the brink,

ualty

of a turning point in its un¬
derwriting experience. In
1958 it lost more than $3 a

share and trimmed the loss to

$1.58

last

with

1958,

further

improve¬

ment

seemingly assured for
after an impressive
showing Gillette made in the
early months, The company
is a cash-rich one, a long-time
dividend payer and its payout
has averaged unusually high
at 69% of net earnings. This
year's results are expected to

this. year

run

the

than

dollar

Textile

Company where

American Viscose,
the

past

was

cited

which in

out¬

are

textile

its

they

once

now

try

generally than from

ternal
has

problems,

had

record for
ever,

bit.

show

al¬

and

has

tion with

furniture

established

packaging,

published by

44th

Annual

Investment

Dealers'

Association

of Canada

is opening today, June
16th, at the Manoir Richelieu,
Murray Bay, Quebec, and will ex¬

through June 19, 1960.
President

the

son

Manager
&

of James

Richard¬

Sons, Winnipeg, will be in

the Chair.

their

Over 390 members and

wives

are
attending this
together with represen¬

meeting,

tatives from the press.
The Honorable Onesime
non,

Lieutenant-Governor

Province of

Quebec, will

open

the

ada Pipe Lines

planned

and

Limited. It is also
hold two discussion

Municipal Finance and

Portfolio Management.

Fennekohl Opens
Newark
NEWARK, N. J.

City,

has

office at 24
der

Fennekohl &

—

opened

New

branch

Commerce Street

direction

the

Fligel,

Office

Incorporated,

Company,
York

n v

The

who

has

un¬

Marshall

elected

been

Vice-President of the firm.

A. Varick Stout

which

Dominick

the

department,

least

Stout,

senior

voted

background

plans,

firm's

re¬

according to
Varick
is de¬

announcement

by A.
partner.
It

examination

investment

for

the

and

exacting scrutiny of the prob¬
course for growth industries
in the next ten years.
Here are
some of the predictions:

The
of

Inflation, one of the major in¬
vestment influences, will not be
intensive and

decade of rela¬

should

founded

banking

Witter to Admit
SAN

FRANCISCO, Calif. —Dean

Witter

Co.,

Montgomery

1870.

has

and

Pacific

changes,

Coast

June

Stock

will

Ex¬

admit

City, Buffalo, N. Y.,
London, England, Paris, France,
and correspondents in 21 cities in
the

United

The firm

States

and

been

superb. It produced

putting the finishing
a major move at their

Street address.

year

when

earnings last

successive year

year,

keeping

substantially to its
equipment.

equipment,

Dominick

nel,

adding

creasing

equipment and in¬
for all department*

space

Forms Robinette Co.
BALTIMORE, Md. — Robinette &
Co., Inc., has been formed with
offices

the

Old

engage
Officers

Town

nership.

This

announcement

industrial

Ed Kennedy
research

ex¬

penditures will reach the $15 bil¬
lion
a

annual

rate

within

year;

prise
name

growth,

increasing

Building

under

is neither

offer

sell

nor a

solicitation of an offer to buy
by the Prospectus.

any

of these securities.

June 10,1960

300,000 Shares

Yale

Express System, Inc.
Class A Stock
(Par Value $.25 Per Share)

Its

Incorporated

Stanley Heller & Co.

Gerstley, Sunstein & Co.
'

John H.

Exchange

30 Broad Street

&
543

MEETINGHOUSE LANE, SOUTHAMPTON, L. I„
MADISON

AVENUE, NEW YORK 22, N. Y.

K&plan & Co. Laird & Company, Ross, Lyon & Co., Inc.

Teletype NY 1-733

ST.

Hardy & Co.
V.J

Corporation

Telephone DIgby 4-7800
MAIN

N. Y.

Woodcock, Moyer, Fricke & French
Incorporated

Oppenheimer & Co.

the

firm

of Ed Kennedy Investments.

Michael G. Kletz & Co.

New York 4

Opens

Copies of the Prospectus may be obtained from such of the
undersigned as may legally offer these securities in this State.

Exchange

John

business from offices in the Enter¬

$35 billion annual rate by 1970.

NEW ISSUE

for Banks, Brokers and Dealers

Members New York Stock

Bank

securities

TULSA, Okla.—Edward B. Ken¬
nedy is engaging in a securities

The offer is made only

BROKERAGE SERVICE

Members American Stock

are

BOND

Hardy & Co.

investment in

Price $5.50 per

STOCK 6-

addi¬

Dominick is training new person¬

business.

eighth

row.

tion to major installations of elec¬
tronic data processing and record¬

rec¬

ord

Canada.

Wall

Sustained

Howard A. Frame to limited part¬

has

It did, how¬

was

offices

Rising production and demand
Robinette III, president; James O.
consumer
goods will call for
Robinette, vice president; and W.
m,ore
power
to run better ma¬
C. Robinette, secretary-treasurer.
chines, requiring business to add

Street, members of the New York

paint indus¬

Its recent progress

firm

Dominick

for

posi¬

tries.

most

in New York

Building to

stability is ahead.

allocate

growth in sales of at

investment

the
country will nearly double
today's
volume
with
an
even
greater
proportion
of
increase
among U. S. investors.

over

equity funds to industries

touches

Trading on the New York Stock
Exchange and other exchanges of

ex¬

an¬

years.

Dominick

tive

after pay¬

over

80%.

able

that

discretionary income

ten

Investors

zes

prepared

of their

Dominick is basing its own
was

than

changes in the dollar.

rate of at least 3%

which face

economic
on

purchasing

greater

nually—or 40%, compounded
the

summar

Gross National Product will

publicawhich

forecast

impact

will

pand at

the

estment

tion,

real

economy.

the

business.

Company of New York, and
Kerr, President, Trans-Can¬

forums

popu¬

ing for essentials—will lend the
greatest force to an expanding

90th

year

power

machines.

teenagers

Increase in

June

firm's

these

—the amount left

and

marks

the

Gagof the

meeting.

J. W.

brokers.

the

indicated by

doubling of

jand
the
young
marrieds,
along
with
a
higher proportion of retired people.
The

vestment

bankers

run

the

worker,

consuming segments of the
lation:

power

Dominick, in-

Associa¬

tion, Norman J. Alexander, Gen¬
eral

In-

Dominick

least

per

A "population explosion"
will
bring sharp increases in the high-

Forecast,

Meeting of The

will
larger.. labor

of 75%

paper,

earnings

substantial im¬

last

provement

although it

erratic

in¬

Opens in Canada

above

figure, according to

Year

required to

family income will

The

Ten

the

were

standing example
of good
major part of its business. It
diversification,
in recent
has branched out into syn¬
years seems to have suffered
resins
and adhesives
in tune with the private de¬ thetic
pression in the textile indus¬

and

vestment

present

efficiency

15%

increase

machinery investment

10 Year Forecast
have increased nearly 50%

and

customers

relatively minor

though

its

over

requirement.
The margin hasn't been that

that has made the shift from

Diversified

90th Year With

force,

IDAC Convention

dividend

Projections
wide for the last three years.
indicate that its underwriting
*
*
*
will be in the profit column
National Starch is a com¬
this year, so it could have
made the significant shift.
paratively neglected item
year.

from

age American

Toni division,
The
guest
speakers
will
be
point pen field Henry Clay Alexander, Chairman
of the Board, Morgan Guaranty
Paper Mate. Of Trust

its

come

When 1970 rolls
around, the aver¬

its

market but particu¬
newer note is
marketing pro¬
larly for casualty companies,
the recent problems have prietary drugs for Upjohn Co.
Earnings were boosted
kept many investors on the
some
12%
last year over
sidelines. Continental Insur¬
has had

of the

and in the ball

money

ance

those

only.]

The

outstand¬

author

tend

payment

-a

Insurance

last

ing enterprise where public
acceptance of the name is
well into the pretty much confined to its

collection
is

Gillette Co. is

mo¬

presented

are

production

entire year.

the

They

Dominick Marks

F. L. Salomon & Co.

(2590)

Chronicle

The Corntnercial and Financial

•

■

„

•

generation

the

electricity,

of atomic

application
Fairman

Mr.

tackles

energy

the

The

and

14%

the

marks

bewildering

economic

plant

York

atomic

fuels.

nuclear power.

for

since the

years
of

benefit

of energy are

sources

policy

and

present

our

develop

Atomic

not

electric

corner

bulb

any

than

first,

judge the

the

Thompson,
stein

new

would

imagination,
givings,
and

has

energy

and

the
mis¬

aroused

have

caught

few

scientific

engineering achievements. Its

turn

competitive

owning

will

power

with

power

and

frontiers.

tool

not

exceed

sponding costs of

the

corre¬

discuss

and

reason

laid

that

and

prudence.

the

scientists

have

the

agriculture,

groundwork, there is no
great mystery about atomic power.
A large
proportion of the elec¬
tricity produced in this country,

and

about

medicine,

biology,
electric

has

power

been

wide

the

first

into

steam.

The

gas
ex¬

Discuss

of
In

atomic

It
James F. Fairman
...

volved, for good or ill, in domestic
politics, the Cold War,., and the
international

prestige

the

have

•;

,
.

been

subjected, as a
bewildering barrage
of
claims
and
counterclaims,
charges and countercharges. There

result,

those who have made extrava¬

gant

promises

world

comes

about

the

tomorrow,
to meter"

cheap

mind,

atomic

and

Competitive

may

Cost

passing

Factor

interest

variety

that

one

there

of devices now under
study or de¬
velopment for the future produc¬
tion of electricity. In addition to

far

national

might

magazine

that

suggest
of

passengers

have

recent

the

been

-•

This

sion

playing

killed

the

minds

the

Doria
if

that

powered

to
of

and

thoughtful Americans. They wish
do what is right and
good, but
they do not know which way to
to

years

shot

and

means

forget

we
an

such

count-down

and

rocket. But there

ference.
ment

just

were

the technical

the

heat

given

off

when

split

fission.

in the electric

Engineers

industry

heat for the heat of
in the process of

bend¬

are

ordinary fuels

generating elec¬

tricity. We have known

it can be
done since the submarine Nautilus
made
her
maiden
voyage.
But
problems remain in the economic

the

concept

The economics of electric
power

production
of

are

the

daily

utility engineers. We

stantly

looking for

concern
are

some

was

con¬

way

time

discover

the

build,

own

But

is under

solicitation of

circumstances

offer

is made

NEW ISSUE

he construed

Edison

distribution

of
electricity,
the
industry
has
experi¬
mented,
developed,
and
built
highly efficient boilers, turbines,
and generators to turn the
energy
of heat into electrical
energy. Our

country,

familiar

and

names

Volta, Faraday

—

there
—

who

are

Ampere,

gradually

heat

laid the scientific groundwork for

•

today's modern electric systems.
I

feeling

patient, I remember
discovered

the

most

that

offer

to sell

June 14th, 1960

Faraday

entirely
of heat, heat from

coal, oil, or gas.
of atomic fuels and the

use

poses many new

Inc*

uranium, hafnium,
zirconium, thorium, and other ex¬
They must learn how

otic metals.

conventional

materials

They have

had

de-

Protection

from

begin

the

large

and

uphill'

passable

the

back¬

energy

can

the

needs.

energy

believe atomic energy
help us keep down the
these

derelict in its
ants

and

duty to

develop

would

to explore

energy

sources.

motive, and

appeal

descend¬

our

not seek
new

A secondary

require-'

energy

generation

one

women,

airborne

dust

the
par¬

ticles associated with the burning
of ordinary fuels. Atomic fuel is
not
"burned"
in
the

ordinary

The

sense.

products

combustion

atomic

not

pour
out of
smokestacks. This fuel is enclosed
in
metal
containers
called
fuel

elements.

The

unburned

the wastes

the

operation

remain in
are

the

reactor

the elements until

reprocessed

unused

fuel

produced dur¬
of

fuel.

they
the

recover

;

Atomic power plants can be an
factor
in
overcoming

important

air pollution. As
more

energy,

and

together

use

live

and

closer

urban

and

centers,

drive everywhere in automo¬

biles, air and water pollution be¬
of

come

spend

greater

money

air

equipment to
tion

assure

left

99%

over

elimina¬

solid

the

coal

Many

remember, as I do
experience,
the
hauling out the

may

personal

daily

chore

ashes

from

get

the

control

after

burned.

from

amounts

pollution

matter

Utilities

concern.

significant

coal

chuckle

which

several

wrote

furnace,

out

appeared
in

may

article

Scientific

the

ago.

years

The

humorous vein

"about the problems
engineers will
face a couple of thousand
years

from

now if uranium
supplies are
depleted and the world has to go

back to

using coal. Using the jar¬

of the science writer, he dis¬
remote

control

operating

of the reactor, it is
oper¬
remotely, which forces the
design of elaborate control sys¬

properly and efficiently.
cludes

tems. The collection and
handling
of industrial wastes
incidental to
the operation of the
reactor is

ible.

use

radio¬

that;

stations

fuel

spent

they

elements

shipped to repro¬

are

for

our

are

}. J. KRIEGER & CO., INC.
\

Our

power.

power

there

motive.

variety of

pursuit

competitive
But

we-studied'
incided with the
steam

over-riding
is

based

The Industrial Revolu¬

tion

heat

economically

civilization

power

coal.

co¬

development of

derived
In

school

from

the- 19th

i we added oil and natural

the

century
gas

;

smile at this whimsical

the talk today
and

atomic

removed
.

from

who

about the

about ra¬

energy

reality.

expressed

is as
The

concern

of atomic power on

use

steamships betrays his ignorance
of
reactors
and
radiation.
The
wastes in the fuel elements of the

shielding, would

reasons

from the atom.

one

Radiation

feas¬

reactor, which is surrounded with

Over-Riding Need for Power
There

far

writer

we want
to try to use atomic
energy? Why
not
be
content
with
what
we

ultimately be

con¬

power-

treatment of problems which we
handle as a matter of course. But
diation

will

can

coal-driven

Reality
We

much of

be obtained

6, N. Y.

are

life,

Atomic

future

sources

eration

temporary

from the undersigned.

last

radiation

have?

COrtlandt 7-8033

our

way of

living

Our

storage

OFFERING PRICE: $2.00 PER SHARE

year as

the

imperative

achieve

material in the plant. Pro¬
vision must be made for the care¬
ful
handling and

cent)

NEW YORK

also

cusses

areas.

special

use

own

contribute
world's

one

equipment, the disposal of ashe?
requires new types of buildings to and gaseous wastes, and the diffi¬
house the reactor plant. As no one culties of providing the proper
conditions so the coal will burn
enters these buildings
during op¬
water.

cessing plants.
Why, you may ask, do

STREET

ward

gon

impurities

we-.may

sources

our

world

ways of
nutest
traces

before

120 LIBERTY

the

removing the mi¬

velop

react

active

COMMON STOCK

may

new

maintain

author

complicated by the

(a New York
corporation)

Copies of the Offering Circular

develop

American

problems for engineers.
must investigate the char¬

acteristics

practical

burned

ated

Speed-Way Food Stores
one

now

merely
ation

men

who

the

one

shields

been pointed

ship

of the best

know.

out many

man

dispersed
sank.

not be

because

And water is

our

radi¬

had

times, the

atomic

sub¬

marines are subjected to less ra¬
diation while
they are submerged
than
they would receive while

walking down the street, of their
hometowns.
—

International

fuel

years

headlong

They

use

design of reactors

principle of elec¬
before

years

have

technical

im¬

tric generation in 1831—but
it was
over

source

from

The

•

was

years

1860

from

hundred.

closer

century

commercial

splitting atoms, and to use it as
safely, as efficiently and as cheap¬
ly as we have learned to use the

.this

buy any of these securities. The offering
only by the Offering Circular.

(par value

started

out.

150,000 Shares

...

found

soon

electrical

different

first

much fuel in

ing

problem

other

years

burn

well

electricity. Ben Franklin's kite is
firmly embedded in the folklore

•

In the three quarters of a

since

radiation.

announcement

the

Energy
private companies
and operate power

permit

reactors.

hundred

know

much

hun¬

dred

gress amended the Atomic

|
This

until

Not

of us knew how big was
challenge we sought and ac¬
cepted back in 1954, when Con¬

secrets

control.

Few

dred years ago that the scientific
minds of Europe and America be¬
gan

and
was

the

than two hun¬

instrument

Real Start Permitted in 1954

Act

The world's consumption
of nat¬
ure's resources shows
every sign
of increasing in the future. A

reduction

ican industry was
portunity
to
try
putting the atom to work.

and
develop¬
beginning. The

time

Amer¬
given the op¬
its
hand
at

history of electricity.

little

When

•

from

instrument

and less than six years ago

commercial scale which take time

to solve.

reflect

became

last decade has the veil been lifted

design and construction of atomic

near ready for commer¬
development is that making

occu¬

placed under the strictest of gov¬

great dif¬

Hitler

ad¬

Christian era?

ments.

Quite naturally this potent

the

used

the

sincerely

fission atoms and

the year

was

infinitesimal

launched

launching
was

Research

ernment

fanfare

the

last

struggle
could; standard

war.

just

the

used

costs

atom

interpretation of the
data sent back by the satellite—if
delicate instruments function

with

which

Czechoslovakia. Two years
later Europe was engulfed in war.
Pearl Harbor came in 1941. The

was

have

particle served

bullet

pied

this is only
end—the collection

power

you

that

reminded

changes these technical

have made in the
way
live. But how many of

will

careful

anywhere

confu¬
many

agoniz¬
that have

into the preparation for the

cial

application

hopes

people has led
the

went

all

unlucky ship had been
by an atomic reactor.
fears

issue

Andrea

and

called

probe the secrets of
And, while Fermi and
probably did it earlier, it

That

direct

ing their efforts to substitute this

months

particle

release energy.

the

gone

of the
vances

actually split

satel¬

power plants were still ahead. Not
fusion, we read until this
work is done and several
conversion,
and
that'
plants placed in operation can we
tongue twister, magnetohydrodynamics. All of these devices in¬ begin the interpretation1 of fOsults
which will lead to improvements
volve the conversion of heat en¬
and point the way to economic
ergy into the flexible and more
feasibility.
P'
easily divisible and transportable
form of energy we call
Engineers
can
become
impa¬
electricity.
tient, too, and I find it salutory
The only one of these
concepts

adding to the world's
ation. An author in

overlook

We do not need to be

six years before they realized
that with the neutron they could

thrilled

are

gan

This

prime
discov¬

was

nuclear fission and

are

natural radi¬

space

supply of fossil fuels and be¬
to convert steam power
into
electricity.
our

new

atom.

others

it blasts off, but

properly.

atoms

ing

use

"electricity
is

tend

atomic

used

the

its

others who have painted the
dark-;
est pictures of the
consequences of

Atomic

that heat is essential in

has become in¬

energy

United States.

by the rocket

electric

rocket.

turbine

nature,
effects

too

natural

generator.

addition, the
development

are

water

oil,

launching of

and

turns

time

radiation.

the

lite

coal,

panding steam drives
which, in turn, spins

exist¬

ence,
and

the

burning

public

the

heat

impatient

people. In speaking to a group of
engineers recently, I compared the
work being done on atomic power

stage in the process of en¬
ergy transformation. The heat of

realization for
of

requires

first

accom¬

panied

80%,

be
are

scientists

This

neutron.

the

was

atomic

the

of energy makes it
1932

nuclear

into

advances

until

ered,

conventional

for

Not

the

We Americans

sug¬

atomic energy unemotionally
with

Now

believe.

one

tions

plant.

that it is possible to

gest

promise in the
fields

whom

that

theory

and Volta—men who laid founda¬

Atomic

Feelings of Impatience
Atomic

Ein¬

Rutherford.

formulated

gether,

the

was

and

affected

radium

that

photographic film in the same way
that man-made X-rays did. This
discovery set off a flurry of scien¬
tific activity
by the Curies, by

maintaining
structures and equipment of
an
atomic7j power plant and the
costs of atomic fuel, considered to¬

Becquerel,

man,

the

Energy Act's amendment encouraged entry

just around the

use

turn of
French¬
inadvertently

just before the
century that a

cost

this

private companies into this field, Mr. Fairman observes that the

milllenium

represent

20th

day explain atomic
energy.
These scientists can be
compared to -Franklin, Ampere,

only

compelling justification

efforts

was

the

■

history.

this

from

heart

from conventional fuels when the

from

economically. Recalling what has transpired in the past six

power
-

new

national

our

tures and

Moreover, he says the future needs of this country

and the world for
;

stand

feasibility of the struc¬
equipment of an atomic

power

that

fuels

investment

our

must

bility, need and safety. The utility officer places the State of New
areas

use

now

ordinary

lamp.

take

20% of the total cost of producing
electricity/These are the bench¬

^barrage of claims and counterclaims regarding its economic faaslhigh cost fuel

electric

while the cost of the fuel is about- discovered

;

other

operating

steam

;

with

handle
make

the

equipment.

our

and

equipment

store

about

of New York, New York City

report

progress

found

costs

By James F. Fairman,* Senior Vice-President, Consolidated Edison
Co.

and

investment

Power From Peaceful Atom
.

universally applicable use was
for electricity — Edison s

holding the line by reducing the

Inevitable and Essential

Thursday, June 16, 1960

"■

and national com-

Volume 191

Number 5960

mittees of medical and other

•

fessional

have made

men

Professor

Eisenbud.

pro-:

has

From these studies

trations

•

and

radioactive

levels

for

standards

Commission

and

the

Actually
creases

there

Protection

and

Measurements, the Atomic Energy
has established rigid
regulations for the operation of
power

radioactive

amount of

materials

produced in
be

used

and

When

themselves.1

The

recovered.

will

need

reading

watch

energy

perhaps

in the utility
concept of

Governor Rockefeller who follow¬

teachers' salaries.

ing his impressive victory in New

bring

power.
At* that time v. we
given the tools to shape this
source
of energy. Our ideal
and is a heat source competi¬

York in 1958, was the most prom¬

education I'll eat my

ising political figure in the coun¬
try, is rapidly frittering away his

look

opportunities.

•

new

was

had

with

tive

ago

years

only

fuels. As we
knock off the rough edges of the

existing

problem, we begin to
more^ clearly
how much is

raw

the

see

in¬

volved in the achievement of our

scientific advance about
ideal.'
;
•
which the public was informed in'
The first generation of power
great detail, both as to benefits
and the need for careful handling reactors are only approximations
.

and

ideal

the

control, before peacetime ap¬

seek.

Once

these

first atomic power plants are

built
plications were
developed. The
stored on government reservations
and operating, we can begin the
machinery for establishing radia-■
under government supervision.
time-consuming job of chipping
tion
standards
and
setting
up
The wastes from reactors that
regulations is already organized. away at details. It is a job requir¬
produce plutonium for weapons
great
patience and highly
Through careful and Continuing ing
are stored in this fashion. It will
skills. We are fully
studies
of
these
standards, the developed
be-several decades before wastes strict enforcement of
confident that we can shape this
regulations,
from atomic power reactors will
new
source
of
energy
into
a
and the inherent conservatism of
equal in volume those created in utility engineers, we are assured powerful instrument of peace. The
utilities of New York State are
production
reactors. that atomic power can supplement
plutonium
Present storage methods are ade¬
in full agreement with Governor
our
existing sources of energy
quate as to safety, but more eco¬ without contributing appreciably Rockefeller's Committee on Power
methods must eventually

nomical

Research

found.

under way.

and

this

toward

ment

no more

the

During

fossil fuels.
operation
of

our

economic

efforts

atomic

other

coun¬

•

from

York

"New

fuel

cost

power;

long

run

of economic
other areas

66th

Annual

Reactors
Be

radioactive

made

materials

incidental to the

operation of the

and Will

That Are

small

into

concentrated

that

nature

can

the

Under
Atomic

the

Energy Commission there

slight amount of this material
can be safely released to the
environment at a plant site. An
infinitesimal amount may be dis¬
solved in water and released, for

that

hard

to beat.
perfect

these atomic power

drinking

National

the

Protec¬

Radiation

safely be released high into
air at plant sites under con¬

We humans have been
to natural

subjected

"sees"

sculptor

the

turn

becoming
Republican
doubtful

sue

This

ideal.

his

that

year.

Sunday

the

wanted

Nixon

Federal aid to edu¬

on..

That is the question
spending 'three billion dollars
additionally for national defense.

That is what Stuart

basing his

Rockefeller

that

said

did

never

answer.

himself, has
said that he intended to improve
upon the present Administration's
program after he has received the
Nixon,

The

fact

record

than
no

that

for

Nixon

what

stands

of the nominees.

any

can

his

what

say

Nixon's

confidante

stand

but
on

Nixon

but there is

fiasco

U-2

against

claims

made

that

was

had

;

Established

' ";

engage

Officers

securities
Lloyd

are

Martin, president; Alfonso Carty,

president; M. A. Martin, sec¬

retary; and D. C. Carty, treasurer.
Mr. Martin was formerly propri¬

ated.

telling us just
what is the strength of Russia. In

photographic

this

words,

reconnaisance

Russia

1928

• o

i •

•

f■

how

much

about how

gence

we
matter

the

stand
of

Offer

the

and

military experts of the
Military Affairs Commit¬

tee, after studying the subject for
many
months,
have
expressed
confidence

the

Eisenhower

The committee
is predominantly Democratic.
requests.

budget

I, for one, don't want to see any
spent on the military.

more money

have built up such a military

it is, that the question

economy, as

arises

whether

us/1

control

With

the

does

This announcement is

menace

being worked out.
On

medical

program

of Russia.

There is not the slightest

for the

money

their

buy

have

insurance.

them

that the aged

medical

own

can

I don't think it is as
the Forand Bill which
would tie the health plan in with

Frankly,
good

security,
where

nevertheless

but

Nixon

stands.

aid

the

Administration

would

loans

grant

the

states

for

opposed

which

would

Government

education

eral

His

On Fed¬

position is well known.

bill

anu

for

which

grants to

school construction.

to the Senate bill
Federal

the

have

appropriate funds for

neither

powerful lobby behind
unquestioned.
A high

percentage of our economy is de¬
pendent upon the continuation of
military spending.
Lobbyists
working for plants which are en¬

gaged

military ' manufacture
They can give

town.

the

flood

thousand reasons why more
spending
should
be
provided.
In
advocating
more

you a

and

spending
and

Governor

Rockefeller

Stuart Symington,

albeit

ALL CLASSES

the

lobbyists.

offer to buy any of these

only by the Prospectus.

\ *

ISSUE

Thermal Industries
120,000 Shares

COMMON

OF BONDS AND STOCKS
including

PUBLIC

STOCK

($1 Par Value)

Florida Inc.

UTILITY—RAILROAD—INDUSTRIAL
FOREIGN ISSUES

Price

per

Particularly Adapted to Service Firms

are

With Retail Distribution

Your

Inquiries Solicited

Copies of the Prospectus may
States

P.
"

where

the

be obtained only in such

securities may be legally

offered.

F. FOX & CO., INC.

120

(

•

BROADWAY, NEW YORK 5,

Telephone

REctor 2-7760

' t

N. Y.

Teletypes

NY 1-944 & NY 1-945

Peter Morgan & C°mpany
149

BROADWAY. NEW YORK 6, N. Y.

un¬

wittingly, are two of the best

offer fo sell nor a solicitation of an

COMPREHENSIVE INVESTMENT
and
v'
DEALER SERVICE

doubt

that the Pentagon, also the Atomic
Nixon is for the Adminis-.
tration's plan/
This calls for the Energy Commission, has lobbied
Federal Government and the state against an agreement on the con¬
trol of nuclear weapons. That they
governments to provide enough

aged,

securities. The offer is made

NEW

not

Pentagon

•-

with

defense

squabbling on: how to divide up
the
spoils we have almost lost
control of military spending and
run
the risk of having the mili¬
he
doesn't intend
to have Ezra
Benson in his cabinet, the Vice- tary control our affairs. That can
as
great
a
danger
as
the
President's new farm plan is still be

*
..

told

has

they were
bluffing. Mr. Eisenhower is pre¬
sumed to be acting on top intelli¬
just

marble.

His first blows

with the mallet and chisel reduce

•

been

instrumental

June 14,1960
' "

the

question that is before the

I
(

that,

secret about it.

of the

One

Symington is

for the Presidency

race

Well,

on.

House

recently.

Nixon feels.

wanted

about?

did

against the Admin¬
everybody knows how

istration

Russia

know

Rockefeller

seen

issue

one

cation, Federal health insurance,
just what issue it was that he
to

never

futile

other

Press"

the

was

speak out

social

vice

have

assuming

panel
asked
Rockefeller just what specific is¬

that

business.

But he

would

this

one

formed

he
1964

"Meet

night

will

party

1964.

unpopular with the
regulars
that
it
is

loses

the

Nixon

believe
lose

the

him

chance

Securities

Street

Nixon
and

have

control

hat. '

completed

statue in the raw block of

As Merril

in the food we eat.

speak of the

artist. Before he begins work

the

radiation since the be¬

time. It comes from
cosmic rays, from radioactive ma¬
terials in the air and earth around
us,

industry

— Metropolitan
Corporation has been
with offices at 418 Olive

LOUIS, / Mo.

ST.

generation of electricity as an art.
some
may wonder at the
etor
,of
Metropolitan
Investors
use
of the term,. I find the work,
with which Mr. Carty was associ¬
of the engineer akin to that of

ginning

our

While

conditions.

trolled

then

Republican

observers-

election

If that wouldn't

Federal

about

public today,
except the
farm
problem. Aside from the fact that

Metropolitan Sees. Formed

plants are ex-t

tial and inevitable.

minute amounts of gaseous wastes

the

every

Adds to

believe, essen¬

atomic power is, I

tion and Measurements. Similarly,

may

WnuEr

pensive to build and operate. But
the
achievement
of
economic

wants

the

wreck

Many

utilities are scheduled . to
place
in
operation
four
large
power reactors.
'
v
Like Edison's first light bulb,

example, to a river. As released
plant, this water will be
within
the
safe
limits
set
for

water

that

and

c" '

year

from the

Committee

William E. Pollock & Co., Inc., 20
but we are just
Pine
St., New York City, have
beginning to learn about atomic
announced the addition to their
power. The government is operat¬
sales staff of Arthur Fitzgerald
ing a number of experimental re-,
in the New York office, Michael
actors. One large power reactor,
has
operated for some time at Ingraham in the Beverly Hills,
Calif, office, 9643 Santa Monica
Shippingport, Pennsylvania. Two
smaller ones have been operated Boulevard, and Paul Hyde in San
in
California.
During the next, Francisco, 315 Montgomery St.

doing

Nixon

wreck

for

these techniques,

volumes,

regulations

We've had eighty years to

transported '* to

safely

and

atomic cemeteries.

going

are

put in steel and concrete contain¬
ers,

Corning,

Operation

just around the corner. Techni¬
cally and economically our pres¬
ent methods of making electricity'

cation, plant house cleaning, and
like. Most of this material is
a

the

such

Party.

Mr.

But do not think the millenium

plant. The materials come from
equipment leakage, water purifi¬

^of

giving the impression now
sole purpose in political

some

life

Convention

his

nomination.

Fairman before
of the New
York State Federation of Women's Clubs,
address

♦An

He is

that

and

stand

areas

the

than
the country."

power.

that

development

nuclear

develop

high

benefit

the

atomic reactor there are collected

this

compelling justifi¬
national policy and

are

present

our

economic problem than the
from expended

energy

cation for

technical and
wastes

needs

try and the world for new sources

In the long run, prop¬

erly controlled radioactive wastes
may

future

The

now

are

Resources

to the natural level of. radiation.

develop¬

end

BARGERON

CARLISLE

were

repetition. The inconveni-.

atomic

business

familiar

too

are

...Ahead of the News

original ideal.

Six

first great

fuel will be

wastes

disease

Atomic

these

life, they will be shipped to re¬
processing plants where unused
or

the

eliminated by luminous dials.

elements have served their useful

fissionable material

benefits

conforms

statue

in¬

alarm clock in the dark has been

reactof will

power

\
some

in radiation levels because

bear

ence

within the fuel ele¬

contained

ments

■

FROM WASHINGTON

technical

considerable

and

finished

the

The

ment
to

greatest

has

advantages of medical
X-rays in the diagnosis and treat-

reactors.

By far the

planet

are

want.

i Commission

rough semblance
sculptor

Now the

knowledge. The skill and talent of
the artist determine how closely

of radiation

this

always been exposed."

Radiological Pro-

Radiation

life

tience

minute

same

detectable levels

which

tee

proaches what he had in mind. It
is work that requires great pa¬

live,

less than the

tection and the National Commit¬
on

with

International

the

•

unless

generations must contend

but

Guided

out,

"future

exposure

workers

public.

pointed

environment and the way we

concen-

materials

radiation

industrial

general

•

concept.

prepared to modify drastically our

they have de¬

prived standards for safe

marble

his

are1 begins the patient chipping away
at the rock until gradually he ap¬

studies of the effects of radiation.
r

the

Industrial

Medicine at New York University,

exacting

(2591)

The Commercial and Financial Chronicle

(2592)

The Commercial and Financial Chronicle

ade

s~\

i-i

( 111
U

•

I
HOK
blUUlY

in
111

far

reach

1960s pay singular

stress

the

he makes

bound to

enjoy

above

rates

average

force

this

have

adaptation of

changing economy.

rapidly rising labor force to

our

This not only will assist

rapidly

our

higher national

training,

eco¬

he concludes, but also will simultaneously help pro¬
highest income and preferable job opportunities to those

the

with

The world

education

most

and

training.

1960s will be the number of
young

teenagers reaching maturity. The
number of young people reaching

changes.
born

economic

year.

1960

have

lived

will increase

age

3.8

nearly

the

This

million

50%

early

surging forth

the

immediate

into

The

one

20th

and

industrial

the

this

Rising

the

States

United

challenge
are

these

people. This is a
that other nations

our

now

joining the race for eco¬
well-being. It is an oppor¬
tunity in that we still have the

nomic

greatest

increase

material

result

rise

the

rates

after

demobilized.

were

the

birth

immediately

experienced
pressure

changes represent a challenge and
an
opportunity. For half a century
we have been a
leading nation in
the world, not
only in power and
prestige, but also in the living
standards of

and

period.

our

These

rising numbers of young people
will have marked impact upon the
nation's schools. We have already

Ewan Clague

living are the hope and aim
people throughout ,th(& world.
To

million

1947,

armies

standards

postwar

the ' direct

course,
in

develop¬

ment.

of World War II

years

unprecedented

are

key char¬

acteristics

1965, up
five years.

number of 18 year olds
anticipated
between
1964
and
1965
is, of

century. Pop¬
ulation growth

expansion

only

large growth in the number

poverty and
stagnation are
the

es¬

of young people reflects the
sharp
rise
in
birth
rates
during the

Ages

years

pecially fast—from 2.6 million in

Peoples

who

being

are

every

Now

the

high

middle

the

1950s

grade

wave

reached

the

upon

the

their

schools.

youngsters

school

has

and

age,

colleges.

1960s, they will reach

Enrollments

grades

1960s—from

9.2

40%

the

1950s.

13.7

million—

increase

College

enrollments

will

during
university

from

3.8

high, but because

our

death

low.

Furthermore, unless
conditions change, we are on the
threshold of another

of pop¬

wave

ulation growth which will eventu¬

ally

make

nations
the

one

discuss

the

largest

the globe. But it is not

longer future
here

that

now,

wish

the

decade—the 1960s.
Birth rates
main

high;
than

born

tween

are

it
40

million

in the
1960

expected to re¬
estimated that

ing

allow

tinued

babies

United

and

States

1970.

will
be¬

Further¬

that

sume

and

to 208

million,

rise from

the

ties

and

the

tion

which

tional Outlook

the

and

large proviso.

are

made

needed

plan and finance

expansion

operations,

in facili¬

country
not be able to provide higher

may

education
young

for

all

our

the

people seeking it
consequent loss to

tional

strength

and

qualified
—
with
the

na¬

welfare

individuals

concerned.

occupational

information

for

all

means

that

most

but

the

on-coming force
of new workers will be
readily
absorbed
in
entry
jobs.
Thus,
there will probably be keen com¬
petition among young people for
jobs
in
many
occupations and
geographic areas and need to pre¬
them for moving

pare

rapidly

'as

possible into positions normally
staffed
by
older
persons.
This

calls

for great expansion in train-

iwg'programfs,'Counseling and
ing,

and in placement services to

youth.

;

'•

qimrr-ib

q--W.

Growing Industries and Jobs

The

demand

side

the

broad

jections

and

the

Labor

These

new

young

briefly,

pro¬

growth.

these

pro¬

large

growth

expenditures
and
the

and

the

number

labor force.

The

for

schools,

defense
levels

and

purposes

activity

personal

and

dec-

The

have

responsible for
growing employment in this area
include

rising income levels, the
increasing
complexity
of
the
country's

financial

growth of

our

movement

activities, the

industries, and the

population

from

areas.

are

expected also in retail

stores and other branches of
in government services —

trade;
chiefly

State

and

services such

local

government

public education,
public health, sanitation and welas

Los

Angeles

Hess, Grant & Remington, Inc.,
Philadelphia
Reinholdt &
St.

Stewart,

Eubanks,
&

San

Gardner
Louis

the

ers.

The

scientists,

and

continue

for

be needed. For

nical

and

kindred

will

employment in¬

Meyerson

cal and

The

workers,

building
and

trade

particularly

crafts,

The

data

increasing

dustry, business, and
offices

will

demand

lead

for

the

need for

despite

the
introduction of the
electronic
computers
and
other types of office
automation,
are

tending to restrict

ployment in the
more
types of clerical work.
Occupations
When

formation

are

most

Will

the

em¬

significant

At the

respects
nical

tion

occupa¬

cation

conclusion

that

rate

had

For

pamphlet
School

which

encing.
^

are

the

Distribution

with other nations.

active

long

our

—

man-

The

Trading

Utility Securities

Stock

Co.

Exchange; American

Street—PHILADELPHIA 2,

Bell System

experi¬

The United States has the

Boenning

LOcust 8-0900

engaged

are

race

also

world

Many Years We Have
Specialized In

Philadelphia-Baltimore

Work."

continued struggle to increase our
standards of living and to elimi¬
nate
poverty.

and

Of Sound Public

school

will

economic

12.5

—

also

expan¬

sion

Un¬

Underwriting

and

help

can

opportunities. I commented earlier
about the great economic

education
of

conclusion, the decade of the
confront young people
and their elders
with many prob¬
lems.
On the other
hand, these
can
readily be converted into

means

1959.

grades,

60's

employment

average

schooling

guidance

are

early

boys and girls

published

they had
baccalaureate degree.

the

leavers, "From

average,

well

training possible. Par¬
needed

be
special attention. The De¬
partment of Labor has recently

The clerical and sales
group, which
ranks second in level
as

and

given

occupational

schooling. This

indica¬

encourage

special

highest

the

gifted

professional and tech¬
workers—by far the most

one more

need

children who are poten¬
tial school
dropouts can be identi¬
fied and given

are

than

the

services

level of education.
Personnel em¬
ployed in this group of
occupa¬
tions in 1959 had an
average of
16.2 years of

that,

finding is

schooling, ticularly

group, as we have seen, and also
the one with much
the

This is

measure

boys and girls to get all the edu¬

occupations

growing

considerable

kind

This

Expand

top of the scale in both

rapidly

jobs (unskilled, for
example)
held
by
those
with
lower education.

related to the in¬

years

The

those with less education.
due

routine

prospective

tional trends

That

the

worker's

are

—

new

which

is,
a

schooling
likely to have the highest pay.
the reverse
side, unemploy¬
ment
rates
are
higher
among

increasing

workers

Pay

occupation and his earnings.
Workers with the most

government

clerical

Schooling, the Greater

Furthermore, there
relationship between

all operations in in¬

repairmen

machinery workers, and sales

workers.

Members:

and Industrial Securities

the

dropouts

partly educated shrink.

1529 Walnut

Trading Markets in Public Utility, Natural Gas

million

even

their situation is

sales workers, the second
rapidly growing group. Other
rapidly growing groups are the

WHitehall 4-4970

Francisco, Cal.

2.5

likely to get worse as the number
of
high school graduates grows
and
job
opportunities
for
the

most

52 Wall St., New York
5, N. Y.

Co.

that

completed
The school

to find jobs and

between 1960 and 1970, half
again
as large a
figure as that for cleri¬

A.Saxton&Co., Inc.
Teletype NY 1 -1605-1606-1607

college

especially need counseling,
guidance, and placement services.
Currently, it is difficult for them

bottom

one-fourth

some

will

is estimated at around
40%

crease

not have

eighth grade.

also

about

have

high school, and

nurses,

workers

and

will

these

entering the labor force during
the 1960s will not have
completed

professional, tech¬

group, the rate of

them

high school

people

will

professional workers will

70%

education.

other types

many

better

Current trends suggest that
about
7.5 million of the
young

Additional

large numbers of teachers,
accountants, and

Nevertheless, there will
still be millions of
young workers
without a high school

engineers,

technicians

mount.

the

will

education.

most

demand

young
labor

into

1960s

About

graduates

which

group

the

young workers will be
of

the

sales

only 3%, semi-skilled

coming

parents.

total

skilled workers and
farmers
farm workers were
at the

Glore, Forgan & Co.
Chicago

& Co.

and

22%.

equipped educationally than their

percentage

were

workers
force

rapid growth
in employment
is, however, the
professional and technical work¬

growth,

Dallas

means

relation

occupational

will

years

Crowell, Weedon

the

consti¬

which
finance, insurance and real
will expand most
rapidly are those
estate, the employment is expect¬
ed to rise even faster than in con¬ requiring the most education and
training.
struction. Factors

PRIVATE WIRES TO

Schneider, Bernet
& Hickman, Inc.

emerges.

Above-average employment in¬
not

workers

college educa¬

clerical

4%, and farmers and
farm workers 5%.
Conversely, in
these last three groups from
twothirds to four-fifths of the
work¬
ers
had
less
than
high school
graduation.
The
new

farmers

75% of the
have had some col¬

had

workers

that

during

and

while

there

labor force.

high¬

corporate income.

creases

only will affect the schools; they
ture

the

households, partly because of an¬
ticipated increases in government

Force

workers

decline

tentative

industrial

Summarized

number

workers

Unskilled

em¬

ployment situation is represented
by the growth of industries and
occupations. The Bureau has made
some

the

propor¬

At the
other
extreme among unskilled
workers

substantial

the

each

skilled

•

•y u-'

The

test¬

expect

levels, which

indicates

tion

tute another group which is ex¬
pected to remain at about present

use

guidance—throws considerable
light. The answer the Handbook

farm

1960s.

pared by the Department and the
country's chief reference book of

farms to urban

Change

drop
and

industrial

accompany

occupations

group

workers

shifts

and

show

workers

had 25% with some

declining. Intensifying

will

than

antici¬

workers

;

looking

lege education, and only 6%
less
high school education. The
proprietors and managers
group

only major
actual decline

occu¬

growth.

pre¬

—

entire

number of farm workers
on

which

Occupa¬

Handbook

than

at the
occupation
and

technical

the
an

occupa¬
group who have
attained
certain
educational
levels.
For
example, in the professional

em¬

pational

young

new

less

tional

some

the job changes will be the

types of
starting positions? This is a ques¬

in the volume of business

outstanding features will drastically modify the struc¬
growth

will

required

that the

usual

facilities

immediately to train the

by 15%, over the

population

the

ways

Structure

One of the

the

con¬

proportions of

180

Surge in Teenagers Reaching
Maturity

teachers

This

decade.

moderate

Unless strenuous efforts

well

number

workers

number

will go

for this tre¬

room

necessary

the

physical

available.

to decline.

Thus, the total popula¬

the

high
They also as¬

great

expected

young
people
attending
school and college.

with new advances in medi¬
cine, death rates should continue
is

for

rise

teachers

more,

tion

the

is
one
of
two
industry groups
where employment is
expected to
rise much faster than
average—
partly because of the expected

and

growing

and

people

young

tion

pated. We expect that production
of food,
fibres, and other farm
products will continue to rise but

guidance,

jections indicate that construction

nations
in
the
world, not because our birth rate

fastest

rate is

Agriculture

with

6.4 million between 1960 and

1970,
70%, after a rise of 40% dur¬
the decade just ended.
These figures are all estimates
by the U. S. Office of Education

resources

among the best human resources
in the world. We are
among the

assist

mendous

9-12

(high school) are expected to in¬
crease by nearly 50%
during the
top of

vocational

Will there be

today is undergoing in

social
and
New nations

provide

relationship
education

manufacturing will
others.

industry where

transition from school to work.

short period of time great revo¬

lutionary

branches

placement services, safety educa¬
tion, and all the other aids needed

nomic growth,

vide

had

total

However,

Another way

grow much faster than

omy

ever

same

ployment.

has ever had to absorb in a
single decade—far more than we

great field of manufac¬

the

about

Altogether, 26
will enter
the labor force during the present
decade, almost 40% more than
during the 1950s. This will be a
far greater number than the econ¬

growth,

the

education

schooling. V

turing which employs far more
people than any other major in¬
dustry, the overall rate of increase
in employment is expected to be

people

young

cessful

Dark

relationship
though
met

modified,

pro-, of the scale in level of
with
an
average
of
nine years of

other

and,in

services;

Thursday, June 16, 1960

fessional, -business, • 'recreational,
and personal services.

con-

urgent request for greatly expanded training programs,
counseling and testing and in placement services. Further, Mr. Clague
underscores points made in averring our basic
problem is the suc¬

fore

of Youth.

reversed.

million

encouraging them to obtain all the education and training possible
Moreover, prior to charting the industry areas
occupations

labor

1960s

wholly

need

—before it's too late.
and

the

will

depiction of number of teenagers who

maturity in the

the

been

Age

they have been able to command
good wages and salaries.

Department of Labor

will

has

the scarcest age group, demands
for their services have been
high;

By Ewan Clague,* Commissioner of Labor Statistics, United States

Government's labor expert's

1950s

Golden

cerned, young workers have been

1 U\J vo
-L V/OwS

TmP
\JLLKS

the

sense

Teletype

PH 30

Stock Exchange

PA.

New York

Telephone

COrtlandt 7-1200

■1

inrffltr

Volume

power

191

the
at

1960s.

rate

for

are

5960

PUBLIC UTILITY

SECURITIES

modest

conservative increase in pro¬

ductivity during the coming dec¬
ade, we could produce an annual
output in 1970 of over $730 bil¬
lion, or an average of $3,500 per
capita. Perhaps we can do even
better than this.
Our basic prob¬
lem

to
IU

ifl

fully

see

acc

labor force

we
wc

adapt
to

our

ing economy.;
address

regulation and the vagaries of the
weather.

a gain
only 1%—but this disappointing result was probably due to

Decoration

which

in the

holiday,
following week

TTT

to this extent by local

popular—posreflection of general

increasingly

sibly

market interest in electronics and

ATimi»-pn

Tlonrv T

ivnrk

t Awprrp

iln

effective

City ,members of ffie
'
f"

New
nPrchin

-11

J-jOwerre will
o° r5arKe w i? cin
ritv»m°^mw nf

New

fluctuations. Certainly for future growth — an average
for the industry as a whole tern- gain of about 5-7% in output over
porary
changes
in
industrial the next three or four decades is

business

Tnlv 1

Jri aZittPT

The industry continues to plan

iiUWcIIt)

uccn uciciiu-

awu

"fn

i-JUIIlCU bU

A rim if"

1958 reflecting the set-back of the rating, electric output has conautomotive industry, but fortu- tinued to show reasonably good
nately not many utilities are af- gains ;
;
M

The rapid growth issues have be- fected
CQme

navv-

KlTP'ttoF

industires have also been deterio^

\A/

Thus, while steel operations have been in a rapid downtrend, and the weekly business

Non-Growth Electric Utilities

came

Day

last year.

Widening P-E Ratio Spread Between Growth and

by »„ r,....... w.,.„ the
Mr. ciague before
Conference on Occupational Outlook, New
York City, May 25, 1960.
An

have tapered

auuucaasuccess-

uctxi
can

the outlook for the electric utility

industry
as
a
whole
remains
these *in-"> favorable,
subject as always to the
off and the irregularities of local politics and

months

week ended June 4 showed

OWEN ELY

in January,
iO.2% in

February and

March. In later

the

rapidly
rising During the past year two groups
rapidly chang- of electric utility stocks have fol,
lowed divergent market trends,

our

last year—6.8%

11.4%

creases

$500 billion

assuming

(2593)

over

during

producing

now

Financial Chronicle

The Commercial and

much

living

about

Even

year.

and

a.nmmwwumMnuimni

Number

resources

higher standard

miwmmi»iwi»aTriiiTtin—giiifminiii,aiTTitilTi^inir'inff,tnrw^rYi'1"'''i1Ti-Wr*^t>r

■

June

/ rl"

ijewis & co'

Penn Harvey, a limited partner
sales are more than offset profit- envisioned, compared with an
wise by continuing gains in com- overall industry growth rate of in W. E. Burnet & Co., will with¬
mercial and residential business perhaps 3-4%. In other words draw from the firm on June 30.
I JnPOTTimOn x ± WilLO hand, the "slow growth" utilities, as the result of new family output will continue to double
Profits
vj 41V-A7111H1W11
together with those affected by formations, sale of new appliances, nearly every decade,
involving
"Common Stocks and Uncommon unfavorable
regulatory climates, growth of air-conditioning, etc.
tremendous construction and fi- Forms Norelda Investments
Profits"
bv
Philin
A
In the calendar year 1959 the nancing programs. Moreover, the OCEANSIDE N Y—Josenh ColFronts
by Philip A. Fisher is have shown little market "oomph"
Fisher is
_although many of them revived utilities continued to make a good industry is stepping up its re- ten is eneaeine in a seouriHes
now available in a revised edition.
rij_

other "romance" stocks whose
earnings are supposed to double
every year or
so. On the other

bommon utOCkS &
_

This

volume

Fisher's

has

tion,

describing

methods

Mr.

completely

new

week's

last

selec¬

stock

market,

buoyant

regaining ground lost earlier this

the

yea1'-

new

the

-are

which

growth

Until the recent market revival,
Also the average "slow growth" elecpages
in trie utility was selling at about

stock.

various

discusses

such

com-

with

earnings,

times

13-16

the

as
American. Cyanamid, higher ratios unusually reflecting
panies
Ampex,
Beryllium
Corp.,
Food a generous dividend payout. On
Machinery,
P.
R.
Mallory, the other hand the P-E ratios for

Motorola, Texas Instruments, etc.,

the

rapid

growth

stocks

—

the

and popular Florida, Texas and Ariprospects of these firms that he zona issues with a scattering of
commented
upon
in
the
first others such as Atlantic City Elecedition.
trie
and
Delaware
Power
&

reviewing

performance

the

interesting

Particularly
Table

that

immediately

"Preface

the

—covering

this

the

follows
Edition"

months' period
revised

the 26

between the first and the
editions of this

book. It compares

the

Dow

rise

the

Jones

Aver-

for this period with the rise
of
each
of
the
examples
Mr.
Fisher
used
to
illustrate
the
ages

investment

various

advocates.

principles he
comparable

During

period, the average of all these
examples
increased
in
market
lvalue
nearly three times more
the

than

These

Jones

Dow

results

Averages.

are

even

that kwh sales of the
privately-owned electric utilities
showed nearly a 10% gain, with
in

Light have heen in a range approximating 23 to 35, based on
latest reported 12 months earnln§s- In some cases (such as
Tampa Electric, which achieved a
^5 ratio) rate increases or other
factors assure a higher level of
earnings for calendar 1961 than
fern the latest reported 12 months
s0
tJie P-E ra*10
^

somewhat lower if related
calendar 1961 earnings,

divergence between the
of electric
utility
stocks reflects in part the effect of
higher money rates. Utility stocks
This

two

groups

which

held primarily for in-

are

(1) the con- come have to compete with new
servative, institutional nature of issues of high-yielding preferred
many
of the stocks Mr. Fisher stocks and bonds. (Recently, for
cites, and (2) the recent authori- example, a new pipeline 1st morttative
statistical
study
showing gage bond issue with
a 53A%
that
in
1958
57
mutual
funds coupon and a common stock war-

1958,

8.6%. Operating ex-

penses were

held under good con-

revenues

trol

while

and

income

charges

interest

rates, net

reflected higher money

10%.

nearly

gained

it 7%%^ aftTaZwing
increase in

The

Form
0mpga

equity

utilities

eiec^ric

rpjie

rather

fully

priced

not

did

hydro

favorable

Omega Securities

Securities Cornoration has

"megaAuntiescorporation^ftas

this

time,

tary-treasurer.

ings gained about 7%.
enjoy

Toel

U Qer ine lirm name ot

homes in< lts stepped-up advertis- Officers are Albert Herman, presi-

financing and
dividends, per share earn-

stock

in§ program. Thus, while some of dent, Arthur Herman, vice presithe growth utilities may seem dent; and Stuart Diamond, secre-

the

'
Norelda Investments Co.

oeen formed with offices at 40
Exchange Place, New York City,
all-electric to engage in a securities business,

featuring its Medallion

to the

common

result

business from offices at 2555

dynamics, the fuel cell, etc. In
order to improve the load factor,
increased attention is being given
to electric heating with active
promotional
campaigns,
special
rates, etc. The industry is prepared to wage a publicity battle
with the gas
industry and
is

recession

impact of the

the

than

chapter telling how he goes about

selecting

The adverse effects of search and development program
long steel strike were less in atomic power, fusion, electro-

showing.

-mmm m "

con-

ditions in 1959 as in 1958, but
nevertheless reported an increase
jn fuej costs of only 8.1% compared with the gain in kwh sales

We have

following

continuing interest in the

Public

0f 9.9%. Operating efficiency increased, with the average "Btu
declining from 11,085
to
an
efficiency gain of
1,5% contrasted with only 1% in
the previous year. Increased pool¬
ing and interchange arrangements
kwh"
10,920,

per

53/8J, 1986

also helpful.

were

usual

factor

1959. Despite the

increases

annual

productivity

labor

Improved
was

Telephone & Telegraph

American

Consolidated Edison

wage

striking in light of

rant was offered at 100.59.) On
the other hand, many holders of
they rose about one-third the growth issues are interested
than the Dow Jones.
mainly in capital gains.

Dow-Jones

1959

less

The

Harper
is

and

volume

better than
and in

10%

only

averaged
the

Averages,

published

Brothers,

available

for

New York,
$3.95
per

copy.

they

less

are

indicated

business

from

minor

period.

the unin¬

recessions

the

postwar

there are ex¬
sharp decline
Edison's
earnings in

course

with

Detroit

during

utility

average

ceptions,
in

Hyatt Street.

the

for

Y.—Thomas
securi¬

offices

terrupted gains in share earnings

O'Dowd Opens

STATEN ISLAND, N.

cyclical—most of
protective de¬

them have built-in

vices—as

P. O'Dowd is conducting a
ties

Electric utility stocks enjoy an
advantage over industrials in that

the

rates, atotal labor costs increased
only
little over half as much
as

0 n"c'' 0
00
Employee figures

" 0

4%s, 1990

j
j

kwh output.

entire

higher

industry, but reports for some individual companies indicate that
the number of employees is still

for

available

not

are

despite

slowly

declining

the

plants

and

output.

older ones,

in the

maintenance

National Cash Register

the

than

43/4!, 1985

and the rapid increase

productivity. Atlantic City Elec¬
tric for example, recently com¬
pleted
center

of future
the

501

with its various

cessories. A Farrington-IMR
scanner

into

amount

cash

scans

ac¬

stubs

:;:g

RCA

Members New York Stock Exchange

tapes.

inexorably, but

increase

electric

utilities

are

Telephone WHitehall 3-7600

"flow
through"
for
tax
from accelerated depre¬
ciation, which tends to reduce
total taxes reported. The new SEC
rules and the tendency of state
commissions to favor flow through

using

decide

(b) Natural Gas Companies

What

Boston

for

§j

Cleveland

the

about

nearly

Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400

outlook

Teletype NY 1-376; 377; 378

with
mates

show

calendar
that
an

1959.

for
as

the

El Paso

esti¬

growth stocks will

gain of 8.2% in
this year, while
slower growth pros¬

average

with

pects may

showed

excellent

Dallas

Durham

j
f

Fayetteville,Ark.

Fayetteville,N.C.

; ;

Hakrisburg Houston

Denver

Farmincton,N.M.

Fullerton Grand Rapids

Chicago

Des Moines

Philadelphia

Rome, N. Y.

gains

Montgomery

Pittsburgh
St. Louis

San Francisco

Utica

Santa Ana

Victoria, Tex.
.

Huntington,w.va.

Malone

|§

New Orleans

Nashville

Norfolk

Potsdam Rock Island

Portland, Ore.

Salt Lake City
Santa Fe
Washington

Cincinnati

Detroit

Los Angeles

Kansas City

Joplin

Minneapolis

gain about 6.6%.

Industry kwh output in the first

quarter

§j

Beverly Hills

Beloit

Baltimore

Charlottesville

Burlington

Indianapolis

share earnings for
those

following cities:

compared

Moody

Municipal Teletype: NY 1-1691

direct wires to the
Asheville

Albuquerque

months ended March

TROSTER, SINGER & CO.

have

normalization
with resulting
in share earnings.
give

ceptionally good one (with the
help of some colder weather) and
average share earnings showed a
gain

I960?- The first quarter was an ex¬

& Distribution

Members l\ew York Security

Corporate Teletype: NY 1-865 •

may

in the coming year,
increases

Transmission, Production

companies

2/oy/s,.J-

now

savings

that

.y/w<

^P/ree/

72
Taxes

means

request

opti¬

minute, punch¬
ing the account number and cash

(a) Operating Utilities

growth. The center uses

RCA

Prospectus

modern data processing
designed for some 20 years
a

the rate of 100 per

Markets in.

of computers for many

use

branches of the business also aids

cal

Firm Trading

5%s, due 1980

New modern generating
require much less super¬

vision

Michigan Wisconsin Pipe Line

San Antonio
Seattle

Westwood
^

San Diego

;

Tulsa

Wiiittier

Toronto

(2594)

aged

cakes, buy weddings in en¬
semble,
vacation
on
packaged

Home Electric Heating-

tours,

and

from

Continued

from

page

heating

shaped,
positioned, and adorned in count¬
less ways. Why not let the modern
be modern in

design!

Are

today's

bathroom

blower

Units in keeping with the palaces
of* glass and
enamel where, the

homeowner washes his hands? Or
do they recall the
glinting sunbowl

with

its

protective cage of

wire?
What

about

ceiling

cable?

this marvel of radiant heat
and

seen

—un¬

infinitely flexible—being

neglected because its profit mar¬
gin isn't great enough? Or what
about pre-fabricated
ceiling pan¬
els?

Is the progress of this

inno¬

vation

lagging because installa¬
techniques are slower and

tion
more

painstaking?

Above

really

all,

alert

manufacturers

are

electric heat?

the
In

versatility of
form

one

an¬

other, it is adaptable to any con¬
dition, any situation, any prefer¬
ence.
Would
they be wiser to
broaden their lines rather than to
on baseboards where
ceiling

ance

would

units

belongs?
tion
for

Often

within

the

one

when

pump

applica¬

house

In
is

the

king,

the housewife is

have

resist¬

calls

type of electric

consumer

draperies

heat

best

equipment.

this case,
Do

better,

given

than

heating
run,

where

insist
the

ladies

long
or,

queen.

short
want

cradle

secured

How

tax

grave

deduction.

charts!

glad

Most manufacturers

get

test

our

to respond with

were

results

and

changes and mod¬

ifications.
If
the
manufacturers
had to suffer in solitude. I wouldn't
feel

suffer

badly.

back

isfied

But

have

along with them.

satisfied

customer

further
ones

than

One dis¬
set

can

dozens

you

sat¬

help you!'

can

start—but

turers'

several

new

challenges. Realignments in the
traditional distributor-dealer-contractor-builder

inescapable.
to

not

relationships

While

would

are

constructive, the pattern is

clear.

However,

service

manufac¬

today

posed

di¬

for

know

that today Americans bake
pack-

better

directed

the

electric

diluted

con¬

heat

full

But

must

and

tag-on

told

This

references

the 'bottom

ads
featuring
"Live
Better
Electrically" or "Total Electric
Living."

Some

recognition of this is be-

ginning to

house
fall

will

devoted

electric heat.

ing

coverage

political conventions and

elections

mercials
"

The Westingof the

appear.

television

summer

feature

leadership role in this
issue

Gardens."

electric

advertis¬

demonstrates

program

June

com¬

exclusively

The E.E.I,

its

in the

area

"Better Homes

and

Electrical
tion.

New York Stock Exchange
Midwest Stock

need

much

Associa¬

beginning, but

specific national
directed to the con¬

tal

concessions

some

loads,

big,

little,

friends

cannot

provide

all

the

answers.

Many of us in the utility
industry have an electric heat
pricing problem—a problem made
difficult by rate traditions.

Fresh

The
a

test

Viewpoint

all-electric
of

our

product in

the

expanding

and

has
to

problem

use

electricity

our

should

with

provides

to continue

way

marked

meet

Needed

home

willingness to price

our

competitive
the

ufacturer's

who

wheel

can

important

restaurant,

have

market.
I

■

head

cannot

school,

start

whatever

phy,

tional

much

use.

showed

higher

recent
it

Electric

six

'r\

and

program,
ufacturers

was

expected.

the

are

that

the

manufactur¬

ing genius which made possible
the marvels of today's electric era
will
rise .to
the
needs
of
to-morrow.

„

COMMON

have

now

greater than
ances

Are

electric heat.

sales

opportunity

all of today's appli¬
into one.
What we

rolled

must* decide

whether

Aware

the

for electric

consumption.
people
appreciate
opportunities which lie ahead.
They know first hand the chal¬
lenges and the competition. They
Our

sales

the

know

about

its

the

toes

and

business with

local

gas

industry—up

slugging for the
$30 million com¬

and

national

promo¬

They know that air

conditioning,

automatic cooking,
refrigeration no longer come

and
on

silver

platter tied up in blue
They recognize, too, the
pressure for the consumer dollar.
They know that even with pro¬
a

ribbons.

motional
is

pricing, electric heating
going to cost more.
Public Pays for Its Wants

; But

our sales people also know
that the American public pays for
what
it
wants.
Examples
are

fully

—

refer

the

automatic

transmission, power features, and
wheeling on this model. The
annual depreciation alone—I am
still talking about the car—would
pay for heating a couple of homes
electrically.
free

believe

promote

success¬

fully in this kind of -competitive
market, utilities really have to
wake

and get up!

What, specifically, is their role
in

promoting

format

has

are

companies that
headway.

making

They have learned that
to

the

organize

trade,

ceptance,

the

hard

need

you

market,

advertise
sell

well de¬

pretty

many

already

The

electric heat?;

been

educate
gain

MARKETS

POSITIONS

IN'

Madison Gas & Electric

Central Indiana Gas
Gas Service

Northwestern Pub. Serv.

Company

Indiana Gas & Water
Iowa Public Service

OF:

Lake Superior Dist. Pwr.

Central Illinois El. & Gas

Otter Tail Power Co.

Pacific Power & Light
'

Portland General Elec.

Wisconsin Power & Light

Do the

the

BEACH

utilities fully appreciate
opportunity of electric heat?

can't

the

life

why

are

not

cited
/.

for

stand

about

it.

under¬

ex¬

.The "Electrical World"
Heating*
Survey estimates annual revenues
from
houses
now
heated
elec¬

trically at $225 million.

The vol¬

William A. Fuller & Co.
Members of Midwest Stock
Exchange
209 SOUTH LA SALLE
STREET

ac¬

whatever

Great Opportunity?

MIAMI

can

the pricing problem on
a basis that will yield a
constantly
widening horizon of opportunity

Utilities

the

technique,

face up to

STOCKS

Central Electric & Gas

Iowa Southern Utilities
BOSTON

in¬

underlying philoso¬
rates of charge will pro¬

mote and not retard

TRADING

HAVE

This

quality of the
demonstrate that man¬

confidence

came!

becoming alert to
opportunity.
I
have
full

their
*

double

MAINTAIN
AND

House

hundred

response,

CHICAGO

service

nearly

spring in Chi-

Nearly three thousand

Investment Bankers Since 1912

general

study by the TV A

Heating
Symposium and Exposition. Five
or

our

whatever
the

the

N.E.M.A. held its First Na-

cago,

INCORPORATED

that

whatever

This

the

>•

remarks on
without paying

manufacturers
;

high-rise

;

'them tribute.

deal

subdivision,

building,
will

representative

and

expect

theory,

viewpoint. fined by the

It is

important to keep in mind,
too, that the all-electric home has

sales

history,

approach

fresh

the

debate

ing, and cost of service studies to
the technicians. It is sufficient
for

and

sale, .especially during
the pioneering period. The man¬

the

costs, promotional pric¬

'•—

needs.

point

leave

cremental

which

make

pricing
incremen¬

evaluation.

But

in the

well be

loads that make us fret was as big as the electric range
peaks, capacity, and reserve. and vacuum cleaner businesses
want, our rate of people to combined:and,
swimming pool;
be equally
tolerant, equally un¬ manufacturers see their business
derstanding of these loads and soaring to $1 billion in 1960."
opportunities.
As much
as
we
,L Look at the improvements in
urge
them.,
our
manufacturing cars the people pay for so cheer¬
per

Finally, I am bold enough to
suggest that those selling electric
heating
equipment
be
able
to
.

cost

about

sumer.

American Stock Exchange (Associate)

peaks

everywhere. Fred Borch told our,
spring: E. E. I.
sales
conference:
medium—loads that strain our in¬ "Last
year
the swimming pool
genuity as well as heat our cop¬ business, at $700 million in sales,
of

erance

advertising

Exchange

tarnishing our power
and
sacrificing the good
of our voltage with motors

our
companies
we
need
schooling on tolerance: tol¬

page spread
is
sponsored

heat

double

Contractors

This

before

balk at

washers, clearners, refrigera¬
tors, air conditioners?

jointly by E.E.I, and the National
MEMBERS

shrunk

Did

for

specifically,

repeatedly.

idea

name

tell.

accomplished/ with

often

too

factor

page.

mother's back

opportunities?

the

lighting, and so on.
Electric heat is important
enough
story

—

our

appliances,

to- spread on its own
It has a marvelous

arms

have

now

by its inclusion in ads

cost

Tuesday would be a
day of burned-out services, trans¬
formers, and secondaries.
Is this picture overdrawn?
Or

Some otherwise effective adver¬

tising

little

account

summer

A first step

process may

tional budget.

and

sumer.

forcefully,

mand.

bined

fresh, but wrinkled, clothes—

of its goblets, a goodly
part of the promotional dollar had

with

find that little or no gener¬
ating capacity costs need be as¬
signed to the space heating de¬

the

into

pricing electric heat.

clotheslines become loose mounds

trading stamps
station

pattern

Moving from production of heat¬
ing equipment to its distribution,
poses

the

advertising

their

and

heat

take

may

since.

start.

part

for the color of its

New Challenges

electric

only

large

residence
impor¬

use

Companies

prove

ordinary

bonus

when

tunity?

single

The buyer likes to

additional

tant

meeting this oppor¬

are we

This

times in ten years.

People tell me that the flat iron
a real stickler to our dis¬
tribution engineers—five-hundred
rected to the trade.
While you
watts in a single device that could
don't get any back talk when
you
come on our lines anytime mama
talk to yourself, I suggest that a
wanted to sharpen the crease in
stronger
appeal
to
the
buyer
would be more productive. When papa's pants! And Tuesday morn¬
ing. when the bright pennants of
people pick their super market
A

vaBMPt

NEW YORK

that

increase six

expected

seven

Thursday, June 16, 1960

insist
cable

socially
by

are

•

ume

Perhaps self-analysis will
difficult than sizing
buy complete; under a home mort¬ up the other fellow.
To begin with, have our engi¬
gage he can, and will, buy more.
longer ones?
Why not give the Some
manufacturers recognize this neers and rate people evaluated
lady what she wants?
the heating kilowatthours and the
If high wattage units cause wall problem and are trying to solve
it.
How the manufacturer
brings corresponding cash that will flow
streaking, why not concentrate on
together the heating contractor, into our tills? Or do they tense
lower wattages, or spread the air
the
electrician, the supplier of in¬ up over the load, it imposes on
flow? Do heat pumps have to be
sulation, the appliance distributor, our generators, transmission lines,
sold with little or no
attention
and so on, is difficult to foresee.
substations, and distribution net¬
to servicing? And must their crit¬
It means
disturbing time-honored works? If we are honest, we must
ical testing be left to the unsus¬
prerogatives and habits. It will admit that they have been tra¬
pecting customer?
require a high degree of local ditionally conservative, and some¬
Several of the heat pump types
variation to solve the problems times
short-sighted.
I
am
re¬
marketed in my own service area
that arise. f
minded of the professor at one of
in
1959
failed to prove
out to
our
A new product in
great schools of technology
specification under test. Among
today's con¬
the product difficulties uncovered sumer market needs the full treat¬ who wrote in 1897: "After a thor¬
ment of modern promotion: mar¬ ough investigation, I find the elec¬
was a case where the heat
pump
tric light a failure." As one of my
ket research and
performancecoincided
with
a
pinpointing, vol¬
ume
advertising, sales coopera¬ colleagues says, the electric light
company's
internal
engineering
power
industry
has
been
data—but differed radically from tion, and all the other techniques. and
published sales performance Manufacturers have made a good "failing" its way to success ever

Big Market of the Sixties
ture of electric resistance
is that the units can be

Chronicle

The Commercial and Financial

■

CHICAGO *

Volume

manner

191

Number 5960

required, and make

sure

what

meant

the

the customer is satisfied.

Just

The Commercial and Financial

electric heat

isfied.

customer is

sat¬

don't make the equip¬

ment; we don't install it. But as
surely
as
we
promote
electric
;
The
electric
heat
market
is heat, our reputation — and to a
composed of many elements, each considerable
extent
our
public
with varying degrees of interest. relations—are on the line with its
These include not only the manu¬ performance.
Obviously, we can't
facturer,
distributor,
architect, underwrite the entire business.
heating contractor, electrician, and What we do to keep the customer
builder, but also the mortgage satisfied will vary greatly with
lender, appraiser, and FHA of¬ the local conditions. What is im¬
ficer.
All need to be organized portant is that we put our finger
into a
unified effort
the
if electric on
problems and do some¬
heating is to be successfully pro¬ thing about them.
.

organ¬

izing the market?

moted..

There

set

formula

get these various factors pull¬
ing together. Your organization
do

can

its

yard than

back¬

own

packaged, sure-fire
scheme I might describe. The job,
any

stated

simply,
leadership.
Need

basic

one

Most

been
side

dential,
more

knowl¬
edge — which brings us to the
second important function of the
utility—to educate the trade. But
first

have
the

electric

said

has

residential

heat

market.

this market is similar to the resi¬

And leadership requires

before

the

Applications in commercial, in¬
dustrial, and institutional build¬
ings are equally promising and
diversified.
The development - of

Education

what

directed

with

perhaps

little

staff needed to advise archi¬

tects and

consulting engineers

technical

problems.

When

one

on
...

;

considers the dimen¬

Chronicle

sions

the

{(2595)

electric

heat

for both manufacturer and

market

plications

utility,

methods to

I have

done, it is easy to un¬
why many students of
marketing call it one of the great¬
as

derstand

est
our

opportunities
industry.

I
this

that

sure

opportunity;

been

all

sense

purpose

has

stimulate aware¬

merely to
into
have

raised

and

made

manufacturers

appraise

this

marketing
product.

market

for

even

its

magazine has made
contribution

substantial

Th^ New York Chamber of Com¬

methods

bound

the

electric

—

the

"Big

heat

Market

questions

comments

regarding

design,

performance, marketing, and pro¬
motion. Essentially, I suggest, that
they be modern in the way they
handle this modern product.
I
have
raised
some
questions
and made

some

comments to util¬

ities about

pricing and promotion,
market, edu¬
cating the trade, advertising the
electric
heat
story,
selling
at

♦An
28lh

selling,

level

and

customer

these

the

market needs

above

all,

happy.

suggestions

are

keeping

address

Annual

Electric

June

Mr.

Institute,

before

Ayers

the

Atlantic

Plotnick

Walnut

total house expert.

instance,

was

Paul

with

Marshall,

Nye,

Waterhouse

partner

Co.;

business axiom

growth will

the

come

from

today's research."
That is

why you'll find more than

scientists and

3000

engineers busy every day

in the 24 laboratories of

General Telephone

& Electronics Laboratories

Later,

Incorporated.

it for 300 more.
the

before

owner

for

dinners

held

more.

several
(

>-.£•>!

I e+nV'4

,11

and we expect to
addition, we have

officials,

hold

staff is
engaged in two kinds of projects: the
development of new fundamental informa¬
This

'V»P

does.

mortgage

and

bankers

loan

large and growing technical

tion in the basic sciences,

Ill

and maU
We
neglect the Society of Res¬
of personal

program

Gen Tel that "tomorrow's

be-4-

and the applica¬

tion of that information to further

follow-up with these people.

improve

products and the services of General

idential

Appraisers, either — re¬
member, they are the eyes of the

the

lender.

Telephone & Electronics. *

of course we lose

is a

them

contact

no
opportunity
individually.

Society

the

talked

Architects and,

Their efforts are
how

third

part

Telephone- & Electronics

and the facilities of many

lumber dealers' group.
The

just another example of

brings together the talents of many.people

association, the apartment
builders association, a half dozen
real
estate
boards, and even a

General

talked, among others, to the

motel

all working

of the utility's

marketing program is to advertise
electric
heat
to
gain
customer

companies

to advance .-communications

through sight and sound;

Here we have a de¬
Customers in our
area
have confidence in

By.developing, new methods and new

solidly

"products for home and industry, General

acceptance.

cided advantage.
service

what

are

product, they are sure it
gocd one.
In other
words, as they say in the adver¬
behind

say.

will

tising trade, there is an image
truth and reliability.
With

Telephone & Electronics is working for

»a

this

kind

friendly

what it believes is bound to be-a

future in
at¬

mosphere, what we need is to
spend sufficient dollars to get our

to the consumer. It
'might be well to bave the pro¬
grams tie in with manufacturing
and trade advertising, or form a
basis on which trade advertising
story

& Electronics Corpora¬

tion, 730 Third Ave., New York 17, N.Y.

General Telephone

General Telephone &

utility has a prime responsibility
for creating consumer acceptance
and action at the local level.

Operating Companies

".A

fourth

and

Company

Automatic Electric Company

utility

developing

market
This

means

Hard"

Sell

the
sell

Lenkurt Electric Company,

and

sell

Sylvania Electric Products Inc.
Lighting Products Division

hard.

Photolamp Division

aggressive force of

representatives, thoroughly
trained in all phases of building.
They must be able to work with
customers, architects, builders, and
contractors.
They are not selling
an
impulse item but a product
which has to be sold on the basis
of its advantages.
Furthermore,
to be equipped with
promotional
tools • to
the sale.
*
" T

need

Semiconductor Division

field

they

Parts Division

Electronic Tubes Division
Electronic Systems

Chemical &
1

Division

Metallurgical Division

Home Electronics Division

Argus Cameras Division

GENERAL

effective
close

Finally/
formative
is up

at
least during
the
stage, I believe that it

to the utility to see to it that

Inc.

Electronic Secretary Industries, Inc.

responsibility
electric heat

Electronics Laboratories Incorporated

General Telephone Directory

Leich Electric Company

"Sell

growing

growing America.

General Telephone

across

build. However it's done, the

can

McGee,

and

Price,
Harold

Riegelman, Benetar and Charney.

It's

in mind, the lender buys ;

home

Co.;

Executive

Cushman

Bank;

com¬

own

Oil

Shell

the

Committee

the

Vice-President-

Riegelman, partner of Nordlinger,

Arnold

Co., Inc.

contractors.

electrical

repeated

didn't

hattan

business from offices

formerly

Malkan &

pany we ran a six-week course on
electric heating fundamentals for

partner of R. W. Pressprich & Co.;

Broadway, New York City;

simply

part of the market, then you
start all over again.

.of

Lawrence

Meininger Opens

securities

at 26

each

elected

A. A. Buzzi,

Finance

Henry J. Meininger is conducting

Telling youj: story is not, in my
opinion, simple. You tell it to the
entire market, then separately to

hundred

were

part¬

Co.

Vice-President of the Chase Man¬

H. J.

Keep

of Kuhn, Loeb &

the

living, you are pitching for
whole house and you have to

the

York

New

Taxation.

min J. Buttenwieser, limited

Also

conducting

Avenue,

City.

heating business.
As Ar¬
Goldman, their Director of
Marketing, recently said: "When
you start promoting total electric

700

J.,

securities business from offices at
2352

partner

Mr. Richardson succeeds Benja¬

Morris Plotnick Opens
Morris

Richardson,

the

Edison

City,

Lybrand, Ross Bros, and Mont¬
gomery, as Chairman of its Com¬

1960.

Essentially,
ap¬

Convention

thur

Mark

ner

about organizing the

whatever

has announced the election

merce

Sixties."

electric

For

potential, if they
approach it with a positive atti¬
tude, if they meet it with modern

"House

ourselves.

educate

Of Tax Committee

fraction

educate others we must

and Home"

come

Richardson Chmn.

utilities

and

mittee
some

some

manufacturers

the

modern
modern

action.

ness

offered

ever

^ELECTRONICS

(2596)

The Commercial and Financial Chronicle

states

Era
In

disturbances

constitute

insufficient

reason

investing in carefully chosen issues according to Mr. ter Kuile. In
touching on favorable and disquieting factors affecting the invest¬
ment

climate, the

author

selects

investment category to illustrate
tunities

During
have

the

been

months

past

increasing

particular

there

Yet

number

since

lations

been
and

oil

Not

although

ter

who

many

Kuile

the

may

that

were

permitted

production,
imports,

executives.
that
not

been

refinery

used

Cuba

our

and

out

dark

past

attempting

that

1959

than

higher
in

net

lowest
earned

1959

the

net

any

invasion of any
quite a different

our

industrial

our

and

resources

must

severe.

peace.

for

the

armed

our

know

that

the

1958

and

income
a

are

its

was

There

are

sound

believing

that

the

war

with

foreign country in the forseeTherefore, let

ar-

range our investment program on
that premise,

out

year

March

ago,

yet

most

the

Government securities remain the
premier investment. They are evi-

begin

with, in the case of
institutions, certainly U. S.

price since 1955. Texaco
44.8% more per share in
dently low in price today. The
in 1954, 12.2%
more in
U. S. Treasury 4J/4S due
May, 1985,

than

1959 than in

1958, and 6.2%

than in the March
quarter of 1960
than in the same
quarter of 1959.

are

selling

4.15%

yield.

exempt

101,

which

Treasury

from

bonds

taxation

are

that

the

other

NATURAL GAS

YEARS

traded
market.

must

invest

income

$54,600,000

$28,200,000

Revenues:

tee,

the

time

the

ticular

Gas

200 COMMUNITIES

TOTAL
NET

INCOME

right

for

the

there

are

in¬

Moody
Rating

One

these

only,

seem

situation

suggest

selection
the

Yet,
increase

steady

the

cine

invest

carefully selected groups of stocks
with

confidence.

There

are

some

?.XC®!!ent J?.od' ut.lht?
stocks available
at
to

,_ml

from

should not

over-

5.00%.

However,
look the

one

fact that

are

now

expect all sorts of upsetting
news,
charges and counterchaiges, criticisms of our defense
policy, and

the conduct of our
affairs both at
home and abroad. After the
elecmost

the

disturbance will

disappear. There
change

will

can

probably be

our

regardless

izon.

pattern

which

hope

for

but
be

not

seem

the

very

and

lower

air

be any
the hor¬

been

there

114,000

for

they
rarely

decline

convertible

conv.

bond.

2,020,000

are

cost of

7,117,000

800,000

and

come

the

too many

Certain

chance

taxes
for

were

individual

reduced,

personal

loans

The

situation

the

following

in¬

convert-

Current

Market

Yieid

981/2

3.54%

113

3.76%

2/15/87

107

3.97%

8/15/73

106

3.77%

Debenture

S.F. Subord. Deb.

111

4.17%

1013/4

4.42%

•

the

1/72

8/15/87

State

New

York.

with

municipal

vL S f! f L

/0 yield

an all time
high of
3.84% and it is 3.58% now. What
other proof is required to show
that municipal bonds are in a

ra"ge t°day"

o!
^

tjf";

1951

New York 1.60s due
a
1.50% basis.

3,45%_

and

sold

{QQQ, 'listed

the

stock Exchange, have

and

indi-

mechanicaI

the

been

invest-

AnalystsNe" Y<"'< S°cie"' °' SeCl"
y

With B. C.

3/due

New
had

graduale

o!
on

Today State of
33,4 s due in 1989
yield

CUy of New York

engineer, Cornell University. He has

engaged in engineering

State

1992

that yield hit

J* a d o

Christopher

(Special to The Financial Chronicle)

York

range KANSAS CITY, Mo.—Ludwell G.
1251/4-81 18/32 since they were
Gaines III has become affiliated
the low price
being re- with B. C. Christopher & Co.,
ported in this year 1960. At
pres- Board of
Trade

issued,

erd

they

are

selling at 87

April,

1946, the Dow-Jones average Gf twenty
20-year muncipal
bonds registered an all
time low
yieid 0f 1<72, yet on Jan.
11, 1960

Building,

bers of th^ New York

mem-

Stock

Ex-

change. Mr. Gaines was previously with H. O. Peet & Co. and
prior thereto with Merrill
Lynch,

Pierce, Fenner
y

;

„

§f

& Beane in Akron,
'

\\
'

Market Place
w.

for ALL

Unlisted
'

'
,

;

...

■

WISCONSIN UTILITY ISSUES

IL^nwora*
INCORPORATED

INVESTMENT

and

necessary commodities.

favorable

Maturity

Debenture..

™ea"T7/ mone?C/Ts"

then

with
plenty of grain,
wood, iron ore, cotton, wool, and

these

se-

suggested that investors study the
merits

Apparently

danger
oil, coal,

Despite

non-

Carefully

time payment

time payments would also
dimin¬
ish. No country can be
considered
to
be
in
real
economic

other

their

l6n-ed c?nverfibla bonds are
sellin§ ln a buying range.

pros¬

outstanding, but if the
borrowing should go lower,

need

but

below

de¬

loadings

into

straight

selling ible bonds:

♦Legal for savings banks in

figure
higher if

freight

with

stock

convertible,

contracts

12,975,000

along

the

are

intrinsic worth

S.F. Subord. Deb.

reported
much

fluctuating normally.
fundamental indications
perity are evident.

374,000

they

party

included in the total, as
they
should be.
The output of elec¬
tricity is steady;
housing starts

4,825,000
1,804,000

which

Carloadings have

clining,

conv.

4%% convertible
Atlantic Refining

New York

i
therefore

may

steadily

1/74

4%%

certain

rise

market

*Niagara Mohawk Power
A

refer-

bonds. These
investment usually

for

(Indiana)

...

may

are

the

well
continue it's upward trend. Thereone

the

assistance, pensions and
vacations, the economy could

fore,

convertible

tend

Yet

bonds has been similar to that of
old-a^e the corPorate market. They have
longer experienced market fluctuations

conditions

rjng

imnrovements in mai
farming oractices medi-

working

aspa

market.

1/82

because
in

only^n

^Consolidated Edison

Donulation

chinerv

stock

v///;

4V4%

last

were

ms+i+nVi™

anv

10/

would

caution

stocks.

vebjcies

from

few examples. Atchi-

b/includedIn the

could well

Recent

pretty high. The

times

times
rates

today, had by
long run

Phillips Petroleum

York
"Times"
average
of
stocks is at 381.02 and the alltime high was
428.00

Such

^Baltimore Gas & Electric
41/4% convertible Debenture

New

August.

the

y.ry-f \,f

self-

that

in 1929 and

3V2% convertible S.F. Deb.__

par¬

hectic

Standard Oil

certain

appear

of showing
these
point out the obvious
investors who purchase

not
the hope
capital gairl) but .aiso
bed§e against a severe decline in

fiscal

to the Present"

mortgage 4s due 1995

commit¬

connection,

ma-

son & ToDeka & banta Fe general
lopeKa & Santa ae general

such

that

the

119 V4-

far the better of it in the

out at

comes

outstanding

513,000

been

purchase.

market

277,000

........

Water

100,000 CUSTOMERS

9,759,000

not

only./-:

breakup

deducted,

paid at

money

higher cost ol
and, present income

are

individual, feels that

this

stock

most

made

investment

things would

2,427,000

Telephone

can

range
were

purpose

that

such

wages,

1929

for

market

However,

are

Electric

fPjration. are turn-' ;£r° indiv<Uali
of record

through

be selling at

were

TOTAL ASSETS

halt,

Since then

sound bonds with
courage in
0f doubt and high

market which have been there all

They

themselves

stock

may

can

the

level.

vestments

times

the

high

have

And

example,

truck
1950

data
fact

it is difficult to find bonds that

premium

money,

less than
period.

Some

steadily.

•

taxes

the

materials

^Exchange alone,
possibly three

unusually dark clouds

PROGRESS
1959

they sometimes find
required
to
invest

might
70

WATER

mort-

guarantees

mg m reports

Favorable Factors and
Indefinable
Uncertainties

W large

the

of various

There

Diversified utilities in
diversified area.

traded

taxation.

Great Bend, Kansas

The

with

nnrtfolin

of^arTo'uTtTOes rfr!!ra?ftiesrAnd
types ot securities.

wins.

WESTERN LIGHT & TELEPHONE
COMPANY, INC.

they
hous-

guaranteed

and

brought

1963

$26,000,000.

are

many

institutions
and

life,

TELEPH0ME

over

nothing

say

uon

because

commitments to

subsidies

••\, '' ,??
always buying bonds, the

corporate bonds

little

ELECTRIC

yeai

are

week

4.25%

story,

pre-

supply
g00ds and services to foreign na^ions.
From all reports it would
seem that if the present trend on

yield

yields

Premises Investment Program
°n Supposition of No War

slightly

selling

Each

such
an
enemy
That is the rea-

why, despite threats,

able future.

in-

income

People

evifent.

Jersey)

higher than that
the

spring a
attempt to fol-

United States will be at

influence

national

all

enemy

Knowing

one

reason

it may be pointed
Standard Oil (New

quarter

resources,

have

performances

still at

vestors,
earned

also

consequences

Snare

remember

and

courage

would

it may seem. With-

should

against

strong nation, with

strength,

Govern-

situation

Whereas it would be very

for

matter.

article

productive

kind

felt

not

are

son

oil

de¬

entitled "Atomic
Investments"
which

surprise attack,

Fer

due

be mentioned that

low it up with

the

times

enemy

full

dipping,

gages>

whether
M^^thefdueTfgel

4
4 50%

high

easy

Contrasts Oil Earnings and
rrice

types of weapons. We are
practically surrounded by a wide

business.

However,

attempt

wrote

Americans

ocean.

taxation and other actions
have tended to interfere
with our

„

S
weld

time when

Venezuela, forces,

where

petroleum

the

pression

87Vs until they
turity in 1949.

not

New York Stock

$1,485
in

^he

debt

selling

1929

de-

The figures
do

country>

our

national

not incblde subsidies

ingj

that

one

2.80%
is

bonds

-n

Qur

gent

bave

thing

for

March

Heat and Power purchase
money
4s came through the whole

Sa^elds°3 m1* only 0m46% :'Teaf .lncreas<? .Pe^K°£*that
yields
d.»7 /o>
on!? u.io /© As lt now, it is noticeable how

pride.

runs,

1972
1972,

latest

experienced

Moreover,

chance

and

plenty

sufficiently firm hand has

ment

these

use

1951,

enormous

particularly as to imports, and its
rulings
in
that
regard are
believed to
have confused the oil
situation,
which had been
kept in balance
to

much

grade

debt

top
this

would

odd

high

that

themselves,
Last year the Department
of the
Interior was
given authority to
police the oil industry,

and

installed

may

author

us.

manage their business

Another

in the repetition of threats

an over
supply of certain nroducts, yet these problems could be
handled if the
leading oil

bond

oversubscribed

dealt with this possibility. In nine
years there has been little change

better

corporations

the

Bombs

temporarily

the

they have been up to
151%, but
today they are around 96%. The
New York Gas & Electric
Light

t
.g more Ukely to be based
apprehension 0ver the great
increase
in
public
and private

yield

1946

over

foreign
Suddenly
attack

wishing to

February,

feel

type

market

Over-the-Counter

attack, it
Curtis

there

persons

fact, "Fall-out Shel¬

preciate

indus¬

are

much

ground.

fuels

104

Tel.

or
the
enormous
food, cotton and other
in government storage,

gut

Aaa

maturity as for twelve years. For
example, U. S. Treasury 2 &s due
November, 1961, yield 3.41% and

some

advertised

are

ready

however,

there

re¬

whereas

bond

many

bombs

many

States

been

atomic

apprehensive

might

United

ters"

and

the

Government

has

possibility that

the

with

our

and

become

weapons.

may
replace
petroleum. In

the

missiles,

country

possibility

try,

then

uncer-

lots,

ducts

bar-

"indefinable

amounts of

Communists, particularly
about

the

pro¬

new

low

Tel.

2000

4.78%

the

same

the

near

There

and

said about'

that

has

Russia.

have

has

duction
the

oppor¬

disturbing situation to

discussion

written

over

selling

between

the

and

business.

Much

1958.

investors

these is in the
i 1

due

almost

turbing ele¬

States

basis.

purchase

may

bond

major

there

excellent

some

One

been

Another

are

One

market

1960

Sy"

may

Thursday, June 16,

on March 22,
,1929, Since
they have sold up to 141.
in
in the economy. Perhaps 1946, but they are about 92
now
it is related to the large number Chesapeake & Ohio general mortof new automobiles standing in gage 4V2s due m 1992
were

aware

Ument

cators, however, businessmen are

the

dealers

Mountain

present today.

certain disments.

each

87%

oar

corporate

over

his thesis that investment

are

of inquiries as to possible future
trends in business and the securities
markets.

There

issues

quite

<mch

December

taxat on
taxation.

the

gains.

dissuade

can

thpm

estate
estate

seem

Present

seUing

turned

Kuile*

ter

that

V?Sorv2%sdue^

In the Investment Market
By Curtis V.

and

nf™ Qnl

Analysis of Future Trends

225

EAST

MASON

MEMBERS

SECURITIES
ST.,

MILWAUKEE

NEW YORK STOCK EXCHANGE

I OTHER PRINCIPAL
EXCHANGES
OFFICES

AND

REPRESENTATIVES THROUGHOUT
WISCONSIN

mmiMumd.

Volume

191

Number

5960

The Commercial and Financial Chronicle

(2597)

PRG6RE$f§R|P0R*
I from! purr©!

Wmm
:4wWM®

w$&
w§m

ifispss
®S??S
W:W$5

PURE adds 379
The Pure Oil
new

oil

Company gains important

reserves,

pipelines, and

prospective fields in its purchase of
Woodley Petroleum Company's assets.
Three hundred

seventy-nine oil wells,

delivering over 10,000 barrels of crude
oil a day, are just part of the assets
pure acquires with the purchase of
Woodley Petroleum Company.
pure

receives Woodley oil reserves

over

70 million barrels of crude,

of which 64 per cent

is in the United
in Canada.

States

and 36 per cent

These

supplement pure's own esti¬

mated

reserves

of 511 million barrels

crude, condensate and natural gas

liquids in the U. S. and 20 million
barrels in Venezuela.

the pure oil

producing wells
In

addition,

pure

has natural

gas

estimated at 2 trillion, 194
million cubic feet, not including the

reserves

70 billion cubic feet of

quired from Woodley.

•

reserves

ac¬

Other properties acquired from
Woodley include leases and options
on 600,000 net acres for future

exploration: a minority interest in a
refinery in the Twin Cities area, and
interests in three crude oil pipelines
totaling 530 miles in Saskatchewan
and Minnesota.
pure is happy to welcome the ex¬
perienced, competent employees of
Woodley into its organization. Acqui¬
sition of the Woodley properties
represents an important step forward
in pure's program to expand its
crude oil production and reserves.

company,

35 E. Wacker Dr., Chicago 1, 111.

YOU CAN BE SURE WITH PURS

KW»Ar<W:Na«Tfet

['•

twri^'^io^Ji^i'rt^.iiwW^'iiiii^itll i'i^Vll#t4WfJRJifrt

|H4'

*f*

w** ^, ^rflgfesui• rw

<ft*

^y.'i-

,ryi,

vh-r^^^wwewwteiWfti^m

J"
7

(2598)

The Commercial and, Financial Chronicle

methods and results, in preparing

Management's Primary Role
In Assuring Plant Safety
>:?

training

work

tinue to
makes

until management

occur

its

staff department;

safety specialists;

Wolfe

-1

decides they

and ends

pretense

any

to breed accidents and fails to fake in the

lip

when

errs

tolerable level of accident frequency,

dustry from

disabling

delegate

service.

budgets

rte shows

ex¬

will

that

until

first

management

those

the

who

direct

the

What

affairs

Edison

Electric

Insti¬

three

tute. The very
that
it

been

cluded

topic

for

sion

ses¬

in¬

dication of the

high degree of
importance at¬

ing

tached to it by
the leaders of

b j e c t

and

or,

by tfie fact that this is the second
in

simply this:

recognized

that

four

years

discussed

and

competitive

has

EEI's

determine

for

cure

each

the

cause

accident

im¬

injuries

accidents

the

accident

any

in death,

hours

the

many

payroll,

from

had

the

outstanding work done by
associates in this division. No

persistent

safety

the

mittee

1930,

460

our

employees

intelligent

want

ducting

aid

overlook

contribution

Accident

would have suffered such
injuries.

significant

accident
same

and

achieve

can

without

the
of

specialists.

Nor

employees

the

frequency rate been
in

work.

if I did not pay tribute

remiss

company of our size
its safety objectives

magnitude, or which
loss of eight of more

1959, with

the

try

made

Prevention

the

Institute,

the

Com¬

con¬

safety

conferences,

exchanging

information

Whirlybirds
give wings to
Puerto Rican
power
:j

Over rough ground and fertile
plantation
acres in Puerto Rico,

\
\

place poles and string

\
-

t..

last

1958, and

;

the electric system vital to

70% greater than in
of electric power in Puerto

year was
use

Rico

wires

evolution. New power-grid construction

•

\
|

new power

the Commonwealth'3 industrial

out

up to nearly five miles a day.
This airborne technique saves
much time and money in
building

p»imuu(iMJ»i
7;

helicopters

at a rate

I
\
\

rose at

nearly twice

the U. S. average rate of growth.
This power-system
construction is

■

partly financed by bond issues of the
Puerto Rico Water Resources.
Authority,

•

whose debt service
requirements

covered 1.75 times

The bonds

revenues in

were

1959.

are

exempt both from
U. S. federal and state
income taxes.
They
merit consideration for their
sound

•

and liberal yields. Your

investment dealer

can

give

you

own

security
bank

BANK

FOR

PUERTO

Fiscal Agent for the Puerto Rico
Water Resources

not

two

was

months.
no

promote

almost

safety.

that

say

letdown
those

If I were

strive

nation

for

the

swer

is always,

only

objective

tion

But

"Yes."

accept
accidents

that

the
It

which

Once

sense.

and

complete elimi¬

accidents?

does

the
—

an¬

proposi¬

some

acci¬

inevitable, and the
against them is already lost.
I

have

been

friends

told

the

make

dents—are

war

some

that

industry

dustry

waste

P. 0. Box 4591,
San Juan, Puerto Rico

RICO

human

resources

which

uct

less

to talk about

accidents.

devastating

and

economic

the

end

And

use¬

doubtless

rather

would have to search
to
find
an

which

did

not

manage¬

stances

are

admit

Yet,

the

among

which tells

look

its

establishes
With

worked

in
I

Authority
Street,

New York 5,-N. Y.

year

level

batting

year.

last

Based

tools

don't know the
answer, but I dare
that the best hitter in base¬
ball intends to hit
safely

say

every

steps up to the plate,
Again referring to the 180 com¬
panies reporting to EEI last
-

...

find

abling

which

reported

injuries J add'! five

year,
dis¬

others

which reported less
than one acci¬
dent
per
million man-hours
worked. Do the
managements- of
these companies

budget

given

number of accidents
each year? I
do know the answer
to that. And
I suspect we all
know it.
The

plain

charging

fact

that,

dis¬

responsibility

its

duction

is the complete
elimina¬

tion of accidents.

attained —just as
player will ever hit
time

goes

bat

may
no

safely
—

lesser

objective, set as a
achievement, will tend
rather

than

them.
That

never

baseball
every
but any

mark

breed

prevent

merely

rhetorical

statement.'It is made after
much

thought,
my
of

part.
a

even

rather

soul-searching,

made

in the face

sobering

experience

the

and

need

hardly
there

insur¬

accident

the

training and
possible re¬

tell

this
other

are

but

measure

^important than the cost
Some of them, such
lost time by

avoidance of

entire

crews

partments
are

safety

value

amount

that

insurance.
the

man¬

mistake to think

harder

equipment,

values,
far
of

whole

even

when

accidents

economic values.

And

de¬

occur,

some

them, such as the pain and hard¬
ship which accidents bring to in¬
dividual workers and their fami¬

lies, are human values. The day
has passed when
management can
afford
to
ignore

any
of these
values, for the economic and the
are
inseparable.
A safe
place to work is a good

human

place to work.

Which

another

way of

saying that safety, encour¬
aged 4by
management
and

achieved

through
the
common
application of sound tech¬
niques, is a vital factor in devel¬
oping the kind of human relations
sense

within

company which

are

pre¬

requisite
to

to cooperativeness and
high level of productivity.

For

fear

may

couched
be

that

passed
in

nizes
can

its

sermon

abstract

suggestions

their

but

authorship.

I en¬
can¬

They

developed by the members

EEI's

Accident

Committee at

Prevention

meeting two years

ago, at which the subject for
cussion

to See

responsibility for safety

these

claim

with

which recog¬

effectively discharge it.

were
>•

conclude

management

dorse
not

too

of specific

remarks

these

off

terms

helpful,, let

set

how

is not

costs

spent on

awards.

True, this objective
be

pay

standard

premiums

audience

for

safety, there is only one
right
objective for management to
set—

and that

over¬

will

safety program can be
by weighing the cost of

and

ance

that

budget a given num¬
ber of strike-outs or
pop-ups? I

time he

the

many

false

supervision, against

average of

record, each time he goes to bat
this year, the odds are
nearly two
to one against his
hitting safely.
But does he

economic

the

man-hours

baseball

upon

the
It is

measured

fans know that Hank Aaron of
the
Milwaukee Braves led both
major
.355

that

use

effective

budgets
given number of accidents.

leagues with

may

that

fre¬

injuries

are

add

program.
as

but
management
mistake when it
who

way

may, .require
certain
hazardous

measuring

damages,

matter

though it

even

an earnings estimate or a
sheet,
the
accountants
insist upon a
contingency
provision for the cost of

agements

may

sense,

Attacks False Concept of Cost

balance

industry,
utilities, I

accidents

cer¬

paring

than the average for all
being 6.06 for electric

burden of costs but
dividends instead.

In pre¬

zero.

stays

But, if safety is

all

accident

quency, unless it be

frequency rate in my
industry was not much better

number

jobs, it will not

that

assume

the

doesn't

sure

increase.

watchers

con¬

thing

tolerable

past

level of accident
frequency."
There
is no
such

that the

objective.

the

sure

foot in the
wrong

common

life,

confess, in preparing
these
remarks, I caught myself
thinking of a phrase "tolerable

accident
own

safety

whose

watch

taught and practiced

tain number of accidents
is inevi¬
table. Let me

chart

American

see

its

record

management to

1959, there were still 6.47 dis¬
abling injuries for every million
man-hours

the

make

the

would

Accident

fronting us, it is not unnatural for

required

that, for the

industry, and when

that

Tolerable

perhaps the fault lies in the
measure
by which management

respectability.

when

responsibility for safety. In this
enlightened era, being for
safety
is
like
being against sin. Both
marks of

watcher

organization.

There's

; One

awake, the cost burden would be¬
come
intolerable.
And, human
nature being what it
is, I suspect

pretty hard ;Level

intelligent

ment

the line
far

put his hand

are trying to dele¬
departments a re¬

staff

place, and if another person is
assigned to keep his eye on the

industry

duty

worker

sponsibility which properly be¬
longs with themselves and with

modern

trite.

our

gate

of the

Now, what I have said thus

sole

:V '
/
Perhaps too many managements

improved tech¬
or any

in¬

do.

prod¬

as an

deeply imbued with

public conscience certainly should

accidents

45 Wall

person

plars of industrial safety,

the

full information.

GOVERNMENT DEVELOPMENT

would

overcome

Those

frequencies

never

7 I

this

immedi¬

superstition,

than

average,

there

could

No¬

might conclude that it is a
grave
to talk, or
agree to talk
about safety.
Certainly,< I have
had
to
ask
myself, again and
again, does it really make sense

industry

distinction

accident

average.

and

dubious

the

efforts

mistake

from five to nine times the indus¬

makes

the

in the mind of
everyone, we shall

the

results

permanent disability,

had

reporting

employees.

all

above

average,
17
were
double the industry
5

program.

which

consecutive

de¬

50%

disabling

first

appear

accidents, totaling

The

safety

assisting, in countless
in the achievement of man¬

safety was to establish an effec¬
tive Safety,Division; and I would

suffered

of whatever

involves the

company's

paraphernalia

agement objectives.

resulting from
job. We defined

disabling injury then

now:,

including

other

ways,

been

Annual

Company

disabling
a

its

than

known—not
just
to ,the
supervisor or safety en¬
gineer, but to the entire line or¬

niques, better tools,

Indeed, one of the first acts of
Thirty years ago-^-in»1930**»34<2 Management following its accept¬
the
employees of the Baltimore Gas ance^ oi
responsibility
for
Electric

elim¬

safety

Convention.

and

makes

otherwise

at best, to the sec¬
tional conference. I am
impressed
time

then

mediately
after
its
occurrence;
publicizing the
importance and
the requisites
of safety; and in

safety is relegated to the commit¬
room

just

and

shall

ganization,

answer

cooperative

helping

J. Theodore Wolfe

programs;
suggesting im¬
proved methods and better tools;

industry.
Usually, the

tee

period

safety

our

6 u

phe¬

accident

they

company

responsibility
for
safety you think, however, that these set as a goal the complete elim¬
had a
responsibility for the safety cannot be delegated to a staff remarks are addressed solely to ination of accidents would
be to
of our company's
employees and department. It is part of the job companies with accident frequen¬ impose intolerable cost
burdens
decided to discharge that respon¬ of
every
officer, every depart¬ cies above the industry average. on their operations. I don't
be¬
ment
sibility.
Among the companies with better lieve it.
head,
every
foreman
or
True, if safety becomes
Now, I do not wish to minimize group
head,
every
individual than average performance, there an obsession, to the point
where
the importance of the work done
worker, to prevent or avoid ac¬ is need for plenty of improvement no worker is permitted to
do his
before the electric
by our Safety Division in: de¬ cidents. Unless that fact is
industry can job without the constant surveil¬
clearly
veloping safety manuals; organiz¬ impressed upon and kept fresh take its place among the exem¬ lance of another

dis¬

rather
in

decades?

The short

cussion at this

general

over

Management

in¬

this

reduction

frequency

fact
has

caused

nomenal

that

the

you,

our

One

very poor records,, in¬
Among the 180 companies
reporting their 1959 accident ex¬
perience to EEI, 52 reported a
frequency
above
the
industry
average, 33 of these were more

de¬

the first

our

accidents just happened.
inclined
toward

deed.

cision

observe, than it is to the hearts

cides

conclude
similar mis¬

with

assure

one

About

series of

five

reaching
the
guilty of skipping
any

year.

1959,

program. There followed

ately

non-

making a
point out that, while
there are many companies in the
electric industry with truly out¬
standing records, there are even

at this

say,

vember, I agreed to

never

Lest

take, let

eliminated,
nor
further reduced in frequency to
any
substantial
degree,
unless

;

evils

the

are

church.

6.06

million

per

1959.

trying to

never

inated,

r'.i

point, 'is that industrial'accidents

Safety is a subject close to my Instead, the number of disabling
heart, but not closer, I am glad injuries was eight.
i

1949

who

ones

Managerial Must

What I

this tends

totality of costs, such

as human values.
Getting down to specifics, the
industrialist suggests an 11 point
program for management to adopt.

injuries

It's

Mr.

and

•

attendance,

faithful

last

months

injuries.

responsibility.
proverbial
regularly lectures

who

preacher
the

acci¬

reducing

14.02

man-hours in

lost time, as well

the

suffered

know of the

been

has

frequency in the electric in¬

con¬

be eliminated;

refuses to

through

committee

factor

for

had incurred only three

particular
all

Thursday, June 16, 1960

giving only lip service

are

this
You

accepts and fully works with

bluntfy points oat management

pects

shall

known its decision right down the
line;

responsibility to

dent

large utility predicts industrial accidents will

this

help but wonder if there
too
many
managements

which

numerous

concern

expressed

major

President

The

ways.

safety

By J. Theodore Wolfe** President, Baltimore Gas and Electric Co.

h.'

materials,
meritorious

'recognizing
achievement, and in
other

cannot

aren't

and

programs

was

dis¬

"What I Would Like

Top Management Do About

Volume

191

Number

5960'.<>

The Commercial and Financial Chronicle

(2599)

Senior

Investment
Officer, Na¬ President, Union Commerce Bank,
City Bank; Harry F. Bur- Vice-President; Robert M. Hornmester, President, Union Com¬ ung, Vice-President, National
Gives Specific Program
merce Bank;
John S. Fangboner, City Bank, Vice-President; Anker
(1) Attend and participate in President, National City
Bank; C. Studsgaard, Comptroller, Na¬
employee safety activities such as Yost W. Fulton, President, Fulton, tional City Bank, Treasurer, and
Reid & Company; Wade N. Harris, George P. Dietzel, Assistant Vicemeetings,
inspections,
award
presentation ceremonies, investi¬ President, Midland-Ross Corpo¬ President, Union Commerce Bankgations, evaluations and analyses. ration; George R. Herzog, Chair¬ Secretary.
(2) Establish and maintain an man of the Board, Union Com¬
active safety policy.
merce Bank;
Charles B. Merrill,
Form E. R. Dunn Co.
(3) Include safety performance Chairman of the Board, Merrill,
in evaluating individual perform¬ Turben
&
Company;
A. Dean POMPANO BEACH, Fla. — E. R.
ance.
r'V..
' Perry, Vice-President and Treas¬ Dunn & Co. Ltd. has been formed

Safety."

And

here, is

what

they

would like top management to do:

tional

(4)
Support
reasonable
dis¬ urer,
The
Harshaw
Chemical
ciplinary action for failure to fol¬ Company;
Edward
P.
Prescott,
low established safe practices.
Senior Partner, Prescott & Com¬
(5)

Hold every level of super¬
safety.
(6) Provide for effective train¬
ing.

vision accountable for

(7)

Provide

adequate, com¬

petent safety staff.
(8) Place the
accident

same

prevention

and
President,

pany,

The

emphasis on
produc¬

Boulevard

officers

will

be:

Corporate

Mr.

Re¬

Blyth, Pres¬

ident, Donald L. Harbaugh, Vice-

engage

ties business. Officers
R.

are

ward

Edward

Secretary-Treasurer.
R.

principal
York

Dunn

was

Dunn

City.

Ed¬

formerly
&

Pasquier Seskis

June.

the

Pasquier

firm

name

Co., Inc., 61
Broadway, New York City, mem¬
bers

the

New

York

Stock

Co.,

New

change, will be changed to
Pasquier, Seskis & Co;, Inc.

ANGELES, Calif.—Roger H/
conducting a securities

Kendall is

business from offices at 8343 Red-

du
•

Drive

under

the firm

J. H. Mitchell

BROOKLYN, N. Y. — Abraham
Traub
and
Barry
Traub have

Opens

LOS

ANGELES, Calif. — J.
Mitchell, Jr., is engaging in a

formed Patchogue Associates with
offices
gage

Court Street,

en¬

securities business.

curities

business

727

West

the

firm

from

Seventh
name

offices

Demonstrate that safety is
integral part of operations.
(10) Direct engineering and op¬
erating personnel to consult safety

NEWS

Mitchell,

Jr^ & Associates.
D. B. Hutchinson
FT.
B.

securities business from
407

Opens

LAUDERDALE, Fla.—Donald
Hutchinson is engaging in a
Southeast

the

firm
and

name

24th

offices at

Street

under

Hutchin¬

Walter Powers Opens
WHEELWRIGHT,
R.

Powers

Mass.

—

conducting

ties business from offices
Road under the firm
ter R. Powers Co.

Co.

ON TEXACO PROGRESS

From two horses to 200-

companies.

among

top

management throughout
sincerely

the electric industry will

accept its responsibility for safety
and

diligently follow the sugges¬

tions

vention
the

the

Accident

EEI

Committee,

Pre¬

dare

say

day will be not long in

ing when

Ifitt

com¬

point with pride

we can

truly commendable perform¬
ance,
one worthy
of this great
industry of ours.'

June

1960.

MZM

vmvzxY

before the
28th
Annual Convention
of the Ediscn
Electric
Institute, Atlantic
City, N. J.,
address

*An

Mr. Wolfe

—o

Resources

Formed in Cleve.
CLEVELAND,; Ohio — Two
of
Cleveland's
commercial banks
and

investment

Cleveland

four

banking

firms

announced

have

they

are

g a n
new

or-

:X«J£y;;

l&'&k

i n g a
small

business

vestment

jXWJ

com¬

yesterday—"petroleum"

pany.

was

primarily kerosine, the fuel that fed the lamps and cooking stoves of

Participants
the

new

company,

known

Corporate Re¬
The

are:

tional

Clev e.l

Union

Daily deliveries

soon

merchants, it

was

delivered to them once a week. It was

need for twice-weekly deliveries, with its horsedrawn tank wagons.

followed.

Na¬

City
of

Bank

Blyth

Texaco that first met the urgent

Inc.,

sources,

Robert B.

America. Sold by local grocery and hardware

a n

Com¬

Bank;

merce

Ball, Burge & Kraus; Fulton, Reid
& Co., Inc.; Merrill, Turben & Co.,
Inc., and Prescott & Company. Under present plans, the initial
capital
for
the
new
company,
ample to meet borrowing require¬
ments
for
anticipated operation
in
the
foreseeable
future,
will
entirely from the participat¬

come

ing firms.'

;.\"v :V...

;Vv;

The company

is being formed to

provide a needed source of risk
capital to assist growth industry
in Ohio and contiguous states. Its
establishment
will' mean
avail¬

ability of .funds to • growing en¬
terprises which are not in position
to
raise needed capital through
ordinary channels; such as public
offerings of stock- through invest¬
ment bankers.
Technical assist¬
will

ance

firms

also

borrowing

Resources,
connections

since
of

available

from

Corporate

established

the
its

participants

provide access to outside consult¬
fields.

ants in all of the technical
Directors

will

follows:

Raymond Q. Armington, Director,
Union Commerce Bank, and for¬
mer

General Manager, Euclid

Di¬

General Motors Corpora¬
tion; Peter Ball, Senior Partner,
Ball, Burge & Kraus; Robert B.
Blyth, First Vice-President and
vision,

today—the

cj^iief product of petroleum is gasoline, moved swiftly from storage point to market in

giant, modern tank trucks. Today Texaco's fleet of red trucks serves more than 39,000 Texaco
stations Across the nation. Alert marketing
contributed to Texaco's continued growth.

Dealer

operations, based on service to America's motorists, have
'

'"T

Walter
securi¬

name

representatives on safety of de¬
sign.
(11) Appoint a joint safety and
operating committee to establish
uniform accident prevention rules

Avenue, under

as on

(9)

H.
se¬

tion.
''

name

Roger Kendall and Co.

Patchogue Assoc. Formed

son

Roger Kendall Opens
LOS

Ex-- path

securi¬

Dunn, President, and David R.

Dunn,

Company.

sources

?■■■

Robert W. Ramsdell,
The East Ohio
Gas

with offices at 2769 East Atlantic

To Be Du
Effective

Barre

of Wal¬

in rural

,o persons

Adverse Effect of the REA's

receiving

service."

who are

areas

central

',<$■

On Nation's Balance Sheet
By Walter T. Lucking,* President, Arizona Public Service Co.
Arizona

observer

sizable

Administration's

Electrification

Rural

dependence on non-tax status, low cost financing, subsidization

from

become self-supporting adults

treatment, and to

and

other

favored

other

members

Alarmed at the

tree-enterprise system.

of the

pursued in some areas, wherein co-ops are

opposite course being

world

ness

record

assets

our

successes,

our

failures,

But, the

ever.

wis¬

our

ment

dom, our dar¬
ing and our
judgment. The

poor

tion.

ture.
we

fu¬

rural

sheet,
to

extent

Walter

the

from

past

these

the

pages

evaluate where

we can

are

So, first, what of the past? The
history
of
rural
electrification
the

back 40

years,

investment

to 1920, when

private

funds

in electric companies coupled with

technological advances,
made ,it
possible to begin major emphasis
on

rural

electrification.

in¬

Our

dustry recognized that rural elec¬
trification

was

integral part of

electric

company
development.
During the 1920's we pioneered in
finding better and more economi¬

cal

ways

the

farm.

other

using

electricity on
joined forces with

interested

ing about

groups

bring¬

coordinated, system¬

atic study of the problems of rural
extensions

moting
the

and

the

methods

use

pro¬

electricity

farm.
1929

Altered

Picture

fication of farms

ran

high during

the decade of the '20's. Real prog¬
the

was

being

great

avail¬

electric

made.

However,

depression

changed this entire picture

of continuing

vast rural

the

serve

farmers

that

knew

anxious to have the benefits

electricity. We knew, too, that

electricity could

serve

im¬

portant tool to help solve the ex¬
treme
economic
plight
of
the
In

companies

were

extend

able to

their

electric

areas

many

continue

into

lines

rural

despite the economic handi¬
caps. But the odds against the in¬
dustry as a whole were almost

areas,

insurmountable.
And so,

one

of its

many ven¬

tures to

provide new jobs and to
the economic pump, the

prime
the

established

Government

Federal

Electrification

Rural

istration

1935.

Admin¬

1929
over¬

people who
an
existing

had

lievable

progress.

to,

and

this

time, the electric companies were
cooperating to aid in any way
possible
feasible

development

the

feed nearly 25

people, whereas
produce
only

can

his

father

"The Adminis¬

tration is authorized
ered to

and

could

make

food

this

industry

feed

record

empow¬

make loans in the several

possible.

the

REA

cost.

They

operating

effi¬

financial

Where

Sales

Factor in Co-op

This is made
the

that

fact

now

and

agree

the

means

achieve

rural

tells

The

electrification

75%

sales.

ratio

vestor-owned
cent of the
mers

electrified. Nearly
customers

utilities.

Forty

by REA
who purchase their entire
supply
This

from

private

that

means

consumers,

one

the

over

but

will
power

not

only

in¬

co-op

amount

far

excess

utilities

responsibility

di¬

serve

nation's

the

total power needs for 66% of these

ditions of the economy
time the REA's were

consumers.

the

electrify

through its

own

assist

the

nation's

farms

cessful

resources

the

REA

well

co-ops

their approach to what has been a
tremendous problem to solve.
When

look

the

Continued

dustry

use

modernize

increase

production

farms

The

the

electric

panies and the REA
a

co-ops

1,000
There

REA's

Operating

continually lower

cost.

them

million.

States for rural electrification and

represents
eral

provide

Facilities

this

service

investment of Fed¬

loan

installed

electric

money

nearly

the nation's dynamic

responsibility
vestors

been

and

growth.

free

this

the

country

enterprise

their

and

dependent

government,

whether

subsidy or outright
gifts. As they grow less and less
dependent
upon
themselves
to
activate

and

promote

their

indi¬

vidual success, the day of govern¬

ment

systems

$618

in the form of

about 1,000

are

upon

such elec¬ must operate as economically as
operating
in
the possible in order to insure a fair
country today. They serve nearly return to the investors who put
five
million
customers
in
46 up the money that enables us to
states, and have gross revenues of keep up with and stay ahead of
tric

whether

will have
industry.
The
of
many
people in all
of our life are making

phases

have

direct

business
under

actions

com¬

utilities to bring the best possible
electric service to all customers

economy.

whether the government

question that today's farmer is
major market for all things elec¬
Both

system.

full control of this

trical.

the free

development

will

great in¬

question

the

suc¬

them

Vital Issue

electric

vital

attitude.

successful

are

join this

member

basic

not

and

our'

profit-making

The

electricity to

the

fairly
take

not

enterprise

billions that

responsibility for meet¬
electric cooperatives have become ing this
challenge.
a
sizable factor in our industry
It is the goal of investor-owned
and the nation's

them

want

necessity in a nation of rapidly
expanding population.
There is
a

balance

want

This

companies plan to invest for
growth.

further

formed

business and have been

rural

during the

particular statement.
say that since they are in

Some

loans

they
today

this

answer

Rather, if they

had done the job originally.
only have to look at the con¬

fact, future

in addition

that

existence

made thus far in the program.

our

These facts testify to the will¬
ingness of investor-owned utilities

remind

over.

differences.

growth

borrowers

to
not

require the investment by its

electric

political

cases

would

areas.

REA estimates that this

and

quick

proportion is bound
with
the
continuing

growth
of non-farm population
and industry
in rural and sub¬
urban

area

the co-op leadership
through the National Rural Elec¬
tric
Cooperative
Association
is

This

widen

co-ops

companies.

rectly nearly half of

rural

cal

many

In
capital requirements
of these systems have been esti¬
have assumed the
mated at $1 billion annually. This
for supplying the

vestor-owned

farms,

per

while

remaining farm custo¬

served

are

in¬

caused

Some of it is operational
much represents ideologi¬

cus¬

about
connections

rural

three

REA

to area.

non-farm

131,500

non-farm

the

factors and varies from

year

Moreover,

their

were
a

are

many

tomers accounted for 54% of total
power

unfriendliness

This

REA-financed

that

between

private companies are not as
good as we would like them to be.

and

elements

non-farm

relations

eral

strikingly clear by

use

today? Simply, the job is virtually
farmers.
complete. Today 97% of the na¬

the

energy

cannot

methods
them.

1959

are

electricity.

electric

for

and

ciencies

de¬

proud of the role
played by the modern miracle of
we

states and territories of the United

furnishing of

strive

ever,

economic

America's

Rural

unbe¬

Then, in 1936,
the
Norris-Rayburn Bill was
passed, establishing the REA as a
stated,

lower

service

should

REA's?

electricity than farmers.
people.
REA's report for the fiscal
Many modern farming techniques
enough

program.

The Act

commercial

Today's farmer

almost

made

rural

ours?
ter

goals

be any different from
They, too, should seek bet¬

co-ops

growth

lpan fund of $100 million was cre¬ sheet for the 25
years of the REA's
ated for
farm
electric
develop¬ existence we realize that
ment.

the

Should

are

prosperous

Yes, they have the legal
utility. Until the passage of this velopment and growth is proceed¬
so
rapidly that its electric right and responsibility not to
Act neither Federal nor state gov¬ ing
make a profit if they choose the
consumption has been
ernments had played an important p o v/ e r
means.
We
have
doubling every four to five years, cooperative
role in rural electrification.
chosen the course that provides a
As our country recovered from compared with seven to 10 years
profit and achieves our objectives
its economic ills in the late Thir¬ for the nation. An important fac¬
at the same time.
ties, capital once more became tor in this growth pattern is the
Although in some areas we have
available, and the electric com¬ continuing movement of non-farm
business and
industry been able to cooperate with the
panies were able to revitalize their families,
REA's in solving .our mutual op¬
from urban centers to rural areas,
programs for rural electrification.
erating and technical problems,
Since that time, farming, so essen¬
Non-Farm Customers Big
it is an unfortunate fact that gen¬
tial to our country's survival and

emergency

permanent agency.

Optimism for the rapid electri¬

ress

appliances

farmer.

goes

reverses.

served

half—43%—are

were

in 1960 and better plan for
the decades ahead. "
~

economic

was

organizations.

extended
be

tion's farms

market.

assess

experience

for

attempts

T. Lucking

that

under¬

himself

farmer

ized the importance

bal¬

ance

shattered economic situa¬

serious

non-profit

tions, the electric companies real¬

electri¬

tend

rural extensions was

Despite the tight money condi¬

look at the

fication

for

equipment. Often, he did not even
have the money to wire his home.

guide

Today

avail¬

elsewhere,

returns

The

able

rec¬

the

programs

He did not have the money

past
provides

went

the

ord

better

written

of invest¬
to continue

funds

few

The

up.

the return

happened

and

than

sources

able for investment were attracted

what

purposes.

tells
has

rural

and

dried

two

serves

for

capital necessary
many
other

this

balance sheet

was

preference

Thursday, June 16, 1960

solvency.
growth. However,
They should set aside reserves for
some still operate on
a marginal
Although investor-owned utilities
emergencies and to take care of
could apply for loans, in actual basis to provide only the electrical
the continued growth facing them.
needs of the farmer,
practice few could avail them¬
They, too, ought to meet the re¬
So, between the electric com¬
selves of the loan funds. It is im¬
sponsibility for equitable wages
panies and REA's the job of rural
portant to note that the accepted
and working conditions for their
is virtually com¬
intent of Congress at the time of electrification
employees.
passage of the Act was that REA plete. Where do we go from here,
Yes, their goals should be much
funds were for the farmer only and what part is to be played by
the
same.
Unfortunately, how¬
companies and the
and
that electric service
should the electric
given

could

greater

need

the

True,

electrification

our

liabilities, which reflect

and

night.

clear

not

organizations and others are serving nonfarm industry, commerce and residential customers in competition
with private utilities, Mr. Lucking sets forth a program to reverse
the role of REA co-operatives and to overcome the unfriendliness
of his fellow utility heads toward the REA.
The basic question,
according to Mr. Lucking, is whether or not the development of this
country's electric production will be under free enterprise or whether
the government will have full control.
banding together in super

On the balance sheets of the busi¬

it's time for the government's progeny to cut itself off

says

today

co-ops

■■

■

electric

most

business
operations.
Many
have- departed - from the
original concept of farm electrifi¬
cation
and
seek industrial and
be

station

Intent of Congress

growth

Financial Chronicle

The Commercial and

(2600)

comes

ownership and control
speedily upon us.

From statements made
of

the

REA

Our

voice beliefs that

customers, in¬
employees has never

farmers

greater.

statements

imply the co-op

socialistic

are

makeup.

by some

leadership it appears
which they

that this is the pattern
wish to follow. These

their

believe

cannot

that

billion.
These

idly

have

co-ops

and

grown

them

rap¬

successfully. As of the end
1958, 909 co-ops reported
a

UTILITIES

grown

GROWING

have

many

combined net

margin (this is their

term for

million.

California-Pacific Utilities Company

and

profit) of
In

Southern Nevada Power Co.

funds"

think

keep
they

First California Company
INCORPORATED

look

two
are

making
they are
Whether

underwriters
MEMBERS:

PACIFIC

distributors

•

COAST

STOCK

AMERICAN

STOCK

EXCHANGE
EXCHANGE

•

trading
MIDWEST

facilities

STOCK

totaled

EXCHANGE

SAN FRANCISCO

Street

LOS ANGELES

647 South

Teletype SF 885

Spring Street

Teletype LA 533

co-ops

WIRES

NEW .YORK

AND

DIVISION

OFFICES

figure

During 1959, the number of telephones

"Rural

Sheet"

appropriate for

served

in mind. First,
business, profitoperation;
and
second,
in business legally.

big

not,

are

here

and

practically

the

means

whereby

cheap

Since

they

income

than

money

show

profit,

taxes.

are

of which 90
per cent are
Copies of
our

laws

available

these

tems to

set

throughout

our

service

The

dial operated

growth will continue
areas.

Company is classed

the 11th

growth.

"net

that

Telephone Companies in the nation.

obtain

for

are

largest of the 4,000 Independent

provide

they

margin"

they

Various

individual

Indications

request

pay

state

laws

WEST COAST TELEPHONE

provide additional1 encouragement
for

1959

Annual Report

busi¬

state

every

Federal

by West Coast Telephone Company

increased from 163,500 to 174,700,

things

Union.

rather
PRIVATE

the

Balance

the

300 Montgomery

total

must face up to the fact that REA

ness

(ASSOCIATE)

Pacific Northwest

than $300 million.

Electrification

Southwest Gas Corporation

addition, "investments

special

So,

GROWING with the

than $74

that $237 million for

Nevada Natural Gas Pipe Line Co.

electric

shop. As

sys¬

result,

300

Montgomery

street

san

francisco

Company
4,

California

tt.il,

'WNtftaWMtM

Volume

191

Number 5960

most

.The

Commercial and Financial Chronicle

individual
co-op
members
consider themselves socialistic. In

which they have not been able to
solve as fast as.others;. But it<is

tem

their

time

(2601)

fair-minded

individual

own

operations

ness

with the

they

free

our

tem, just

deal

and

the

vast

majority to
citizenship.

full

Yet, in

some

tain

We find

banding

co-ops

state-wide

either

mem¬

as¬

op¬

cer¬

together

super

Our

nation's

predicated

down with

just the

areas

posite is happening.

sys¬

do.

individual

for

sume

and

—

enterprise

you

the

cases

busi¬

must

profits and losses

taxes—of

many

farm

lems.

co-op

method

fully realize how he
is receiving his power supply, nor

promote
large
generation and transmission proj¬

mutual benefit of all.

is he in accord with the idealogies
of the most vocal REA leaders.

ects.

men

communities

undoubtedly
he

would

one

our

Others

com¬

ities.

public

content to

goals of the NRECA.

power

Most co-ops consider themselves

fication

locally

owned, controlled and
They claim the right to
operate on an equal basis with in¬
vestor-owned companies in per¬
forming their service operations.
as

managed.

Their

only

about

route

for

bring

this

them

the

full

responsibility of business
well as enjoy
the privileges

business.

Surely,
of

members

that

they

should

fair

Federal

above.

and

the

contributed

subsidies

the Federal Government—in their

get

V
which

system

prosper for long at the
of all others. For this to
continue and expand would mean
can

expense

the destruction of the nation as

Need

Can

Mutual

for

trust

mutual

Trust

and

the

another

brought

Government has

Federal

—in

sider

<•

two-way

build
their

problems.
utilities

their

across

t^ie nation for
well

economy

interest.

Our

super

TVA's

the

tional

segments

-separate
within

agency

NRECA

benefits

gain

pro¬

will

and

by integrating the
This job

done

by individ¬
ual investor-owned utilities work¬

continues
rate and

make greater tech¬

as we

nological strides,
ignore the REA

they

should

can or

Should

co-ops?

isolate them from

increasing

ever

forward

our

planning and shunt them aside to
fend

before

the

Atlantic

Opens

way

North.

'•

'''

•

long¬

bedrock

Mayer Opens Office
LYNBROOK, N. Y.

our

that

enough to solve
to

work

particularly

have

out

when

coun¬

Mutual Fund

be big
problems

solutions

we,

say

those

industry. We have
sponsibility
of
helping

for

tions

balance

think

can

start

with

than

the

bringing

about

ourselves

and

at 836 East Center to

re¬

Callis A. Caldwell,

sheet.

Form

rela¬

Sacks, Wunderlich

place

REA's,
equality

REA's

and

been

both

formed

with

Madison- Avenue,

to engage

Partners

rights and in responsibilities.
This we must do if the electric

and

Wunderlich

Sacks,

between

—

Secretary and

Treasurer.

better
our

Co.,

offices

Now

Age

steam

mighi

loan

compare

REA's

subsidies

tax

and

the

Federal

the

rearing of children

by parents. None of us as parents
would disagree with the time and
monies each of us spend during
the

formative

years

chil¬

our

We contribute in every way

dren.

possible

the necessary food and
clothing during those years when

provide

they are unable to obtain these for
themselves.
However, at their
coming of age we as parents fully
expect them to be on their own,
to
support
themselves,
and
to
contribute

themselves

with

relationships
human
'

their

now

REA

now

co-ops

responsibilities
citizenship?
Need they

full

own

longer rely on the parent in
Washington to insure the fu¬
ture?
It is true that certain in¬
any

dividual co-ops may need

further
help before they establish them¬
selves as full-fledged partners in
the
are

free

times

Some

enterprise system.

coming
and

age

may

have

different
problems

economy

of these

without

ex¬

any

inflation.

they

efit

in d securities business.
Seymour Sacks and

are

Arthur I. Wunderlich.

time

the

for

and

served

contribute

find

than

contribute

them

for

efforts

realize

this
of

about a solution to
this problem we need the highest
caliber of
leadership from both
bring

be in

the best interest of all peo¬

We of the electric, companies
prob¬
lems and we have to start taking
those
constructive
steps
which

ple.

have to understand the REA

aid

solving

prob-

these

technical

ad¬

energy,

form

available to them. One

most

important

this

fuller

even

come

inter-industry

the

Elec¬

Council.

Through

the Council electric companies and

have achieved worthwhile

co-ops
-

Coming

together

that of

We in

the

save

we see

individual

the

can

electric

are

our

For

than

fifty

FOR

IOWA

NAMES

FAMOUS

NEIGHBORS

POWER

own

cation

free will,

have invested their

This is evidence of the
company

free

and

find
Armstrong Rubber; Fire¬
stone
Tire and
Rubber; Ford Implement; Great Lakes
Pipeline; Inland Mills; John Deere; Marquette Cement;
Meredith
Publishing; National Carbon & Carbide; and
Penn

famous names:

nationally

pend

years

upon

our

ize

minutes

the

of work.

Copy of

our 1959 Annual
is Yours for the

Report of Progress
Asking

Street

Des

Moines 3,

have

now

up
and
responsibil¬

grown

take

full

electrification

ral

will

and

affect

our

the

balance

have

nation's

com¬

The

ru¬

sheet

profound
' balance

sheet.

IOWA POWER AND LIGHT COMPANY
Walnut

co-ops

It will depend
help them real¬

munity, state and nation.

823

for participation

ity

can
A

efforts

they

should
expanding economy of this balanced
agricultural-industrial area, Iowa Power can offer a cli¬
mate
for
industrial expansion- that includes everything
management is looking for . . . plus gracious living with¬
with

individual

their problems.

Dixie Cement, to name a few.

Growing

re¬

individual efforts

our

with

work

the future with

Iowa

one

this

the

I Ml 14

founding fathers

to have the
opportunity to add up our nation's
assets and liabilities, I think he
might be disappointed at what he
country

\vere

found.
Those

men

public's faith in

An Investor-Owned Business

enter¬

to the philosophies will de¬

gard

Among Iowa Power and Light Company's largest gas
electric customers in Central and Southwest Iowa you
many

balance in

DETROIT EDISON

doing this work.
Which way the scales will tend

Iowa Power-Land

complete,
a
in
philosophy
the
two
parties

between

money

contributing to Southeastern Michigan's

essentially

exists

\s 7.v /

consecutive

whose continuing economic leadership

difference

major

Detroit Edison has

typical American business enterprise.

Yet, while
find the job of rural electrifi¬

businesses in

our

of the

formative

the

buy; freedom

quarterly dividends to stockholders who, of their

of rural electrification.

FIND

INDUSTRIES

system. The Company has paid 204

in order to gain much needed

assistance

freedom to choose the

customers and owners.

years

prise citizens who joined the co¬
ops

operated productively under the free enterprise

com¬

members

movement

co-op

it; freedom to conduct

the best interests of

panies should remember that most
of

read, the services

and to invest; freedom to tell our story

major starting point for bringing
the co-ops into the free enterprise
.system:

personal freedom

newspapers we

mutual

these

Triffti

dynamic industrial climate.

results in many areas.

problems such

contribu¬

has

respect

•

Among the most highly valued of all human rights is

and

also must

economical

most

Utilization

tric

that the answer should

concerned

the

tions

through

goal in mind by all

electrical

the

energy

this nation.

sides with the

we can

that will lead

avenue

how to take

mers

ing the basic forces which have
produced the dynamic growth of
To

the

alike. Together

Working together,

undermin¬

are

leadership

solution

vantage

time

their

electric

find the way to show farm custo¬

its

economy.

the

nation's

operational problems.

get what they can take away from
and
start
thinking
of
can

the

America

they

the

and

and co-ops

people for¬

what

must

management of private companies

weakness

It is time that these

sibility

REA leader¬

which
builds
strength.

gram

rather

Freedom in her hands...

public

overall

industry. To achieve this goal re¬
quires the assumption of respon¬

ship to turn from a negative pro¬

will

from

planning

built.

been

best

invite and urge the co-ops to ben¬

leadership in the REA's and are
not examples of how America has
It

the

interest

All

examples of the neg¬
displayed by the

are

No,

Served

attitude

ative

fellow

It has come of age.

benefits

the

headaches

that

electrification

Rural

take

their

beings.

97% complete.
Shouldn't the

panding

healthy,

them

make

well educated future citizens.

indicate

attitudes

all

want

the

Overall Public Interest Must

plants to serve them?

These

of 200 years ago saw

«ki

has
342

New York City

Federal Government should build
Electrification

Rural

are

remove
are

Jay R. Lowe, President; Leonard
Taylor,
Vice-President
and

our

the

engage

Officers

business.

securities

mean

of the liabilities that

country's

our

that

Mutual

—

Corp. of America,
Inc. has been formed with offices
Fund Brokerage

good.

common

Brokerage

Idaho

POCATELLO,

own

some

securities

business from offices at 66 Holly¬

forefathers

our

our own

will be for the
And

wood Avenue.

wisdom

and

Arthur E.

—

Mayer is engaging in

themselves?

for

Edi¬

City,

from offices at 735 Pelham Park¬

concerned with

put our major emphasis on the
and balances which form

possessed.

the

Lucking

Mr.

Convention

Institute,

J., June 6, 1960.

try today some of the courage and

and opera¬

resource

and

society..,

our.

We need to revive in this

the

Annual

Electric

Lee Kerbel

interests of all.

not

need

BRONX, N. Y. — Lee Kerbel is
conducting a securities business

concerned

country.
We
slipped
away
from
those
concepts which promote the best

nation's power facilities.
can

after Federal hydro
longer available the

that

urge

become

have

in the public

power

centers? ; Can \

trust when

mutual

have

the

reasons

customers

means

inte¬

facilities

power

—

values

are

address

28th

son

creep

selves

grating

transmission

the
load

thinking to

values, and

investor-owned

♦An

con¬

puts us
of losing sight of that
We have permitted our¬

the material

operational
and

owned

society-^which

our

planning, and

by the taxpayers, belongs to them
and that the Federal Government
lines

alien

classes

power

should

Society

the investor
the REA's

ment of the country.

Free

danger

with

effort

have become

example,

and

fulfill effectively its obligations in
providing for the future develop-

people

goal.

honorable

common

—

utilities

society.

some

into

responsibility to guarantee their
Such cooperation
supply at a subsidized price : ing together.
without raising rates, irrespective among
electric
companies
has
of the cost to the taxpayers?
Can led us to significant technological
we have
mutual trust when they improvements in all phases of our
feel that all power generated at industry.
As the integration of facilities
Federal dams, which are financed

the

relation to power supply, facilities

For

industry

the

cooperative

all

We have permitted what I

one

together.

start

can

street

free

Threat

respect

get

can

betterment

level where

and

efficient,

businessmen

union of free peo-

This should

local

know

who

posed

coopera¬

utility operation be

that the

power

whole.

done

giant Federal

tive

the

look

efforts
something for nothing.
increasing

ever

about when REA spokesmen urge

has made this nation great, no one
group

for

purpose

and

when

;

economic

the rural electri¬

serve

full

government is

util¬
longer

their

loans

agree

obligations, thus strength¬
ening the necessary functions of
government. Surely, fair minded
members of co-ops would agree
that they should turn their backs
2%

are

state

pay

community,

cost of money

tax-paying

co-ops

Federal

and
efficient,

which they
were
originally intended.
Now,
they also want to reap the harvest
of profits in commercial, indus¬
trial and residential loads—on top

minded

would

co-ops

Some

commerce

served

well-managed

panies not fully understanding the

expanding

are

industry,,

serve

his bill just

pays

the

working out differences can be
applied to this problem for the

ber does not

organizations

sitting

confident that the

together and working together for one common goal,

another to discuss

time-honored

old,

this nation

sys¬

the basis«of < pie, gathered

individuals

one

problems.

business

-t,»i«04*f«1Mi*iSMn lWMWC^'*'l

mailed

Live Better Electrically—

find

of the

Better Electrically" program

This is shown to require the active and direct par¬

industry.

ticipation of

11 0.
lis.

every

interest

sponsorship of the nighttime tele¬
"Playhouse 90." Per¬

electric company head, manufacturer and trade

vision show

Electric utility heads are criticized for spending so much less

ally.

s
I

mended

incurred and why stress

mother; and (2) use of the opposite

competitive advantage heralded by the gas industry—the symbolic

ago, Mr. E.
O. George,
O.
McQuiston and
Mr.

year
Mr.
T.

>.;

tric living. I

try's

cept."

business

and

problems

op-

stress the word "con¬
Second,
leadership
was

tunities

por
.

pre¬

senting the concept of total elec¬

George Ousler outlined the indus¬
ti' ■

investing only pennies in

was

that

•

lK\
''

needed
v?"

tie

and

coordinate

together

imperative for

efforts of all segments

the

level

trical

investor-

the

hind

ties of America

national ad¬

cept,
uniting them behind our
slogan, "Live Better Electrically,"
uniting them behind some kind of

vertising,

battlecry

to undertake

motion

pro¬
and

American

publicity

pro¬

industry

gram

called

Live

Better

the

*'lti

The

■'('

the

fact

over

h1
.'

.iv

fr. V

electric
ratio

>7
1

/■•!

of 1

to 3."

lent

\
>;

pointed out

brand

and

excel¬

features,

■

electricity

'i'

at all.

■u

or no

such reference

Locally, manufacturers and

appliance dealers

promoting
appliances, individual appliances.
And, again locally, utilities were
spelling out the competitive ad¬
vantages of electricity over other
were

And

things were missing, how¬
First, despite millions upon
advertising

and

sales

dollars being invested against in¬
dividual appliances, our industry

for

the

and

months.

every company

every

manufacturer

and every trade

ally to take a di¬
rect and active part in this total
electric living crusade.
Speaking for the Planning-Task
touch

upon

the

following points:

utilities

and

together

The

virtually

has

consumer

pliances^being ?*p?]?sly e» cost is
n°t a ™aJ°r f
* JA? n?otlva.

in5p
Itinn K
of the buying action, hold back
who

women

in the use of elec-

at all

(1) The results of

making

were

progress.

interesting
that

AGA

credit

for

course,

enormous

ship

About half felt

program.

of
given

fact,
was

its

sponsor¬

"Playhouse
90."
This,
again, reflects AGA's far greater
budget.
One

unmistakable

from

out

these

segments

utilities
the

industry

who

dealers

impression

sell

who

the

out-promoting

the

who

going

What

mail

ques¬

tionnaire sent to utility executives

consumer

na¬

doing a
excite our

hope to

not

our

industry?

living

shred

wants

and

industry,
for

the

consider

individual

your

Live Better

Electrically,

Public

public's

mind

Receptive

part.
Let's

begin with research. Last

winter,

questionnaires

were

means
is

ready
Live

and

Better

mind

determine
the

examines

the

American

the

adver¬

to the concept of

through
living

electricity.
a
clear

has

most

consumers,

electric

many

appliances.

highly desirable,

pleasing

comfortable

living,
living. To many consumone out of three,
it means,
means

ers,

expected

high price
-

But—and
of

sence

here

the

very

research—cost

our

and

men,

two hours each,

lasting

were con¬

who
sell

the

are

make

when

The

motiva-

most

end

powerful

benefits

appliances, those who

them and

those who produce

helps

electric

the

living

con-

outweigh

cost.

the

•

"Resistances to

buying

Time

and

any

labor

ap-

sav-

ing
Better-living and Luxury." Here is the paradox of our
.

Chicago; Cleveland; Dallas; De¬
troit; Long Branch, N. J.; Los

75%

Middle
of

those

women,

husband

and

family.

addi-

afraid that they may
use more leisure

are

productively. And their husaren't

sold

the

modern

ic&a

old-fashioned. The flame is

understand than the in-

of electricity. Abd

visible myslery
here

range

gas

many

,JUke. the

the overwhelm-

come

jng rationalization °f people who
favor gas: It is a less costly sub-

Our data indicate that the total
movement is strongly toward more

electrical

that

shows

toward this desirable obThese are the gas users,
are
comfortably accustomed

others

jective.

using gas,

believe it has
and who

who

virtues,

old-fashioned

remind themselves that gas seems
to

cheaper. An interesting fact

supporting this inevitable move
toward electric living is that gas
range owners have only slightly
fewer electrical appliances than
those who cook electrically.

n^a^-SYml?a+lzlf f
conflicts that beset
90%

the

all

Naturally,
T
and .ll.me
and more status

housekeeping,

a ™dr\rranTand

•

Lrhmnai (?at appl!ances

CONNECTICUT

an7 «,n? r»rL
her

PRODUCTS

fna
and

hnshand
husband

-1

family. Women

want

efficient, up-to-date homes
-the same things men want in
their business. Women want
social

their

the Areas served

by The Hartford Electric Light Company
metro¬
politan Hartford, Middletown, New London, Stamford and Torrington
.

But

and prosperity.

COMPANY

Wethersfield, Connecticut

status,
work

they have

science

about

pleasure

and

"better

living"

twinge

indulging

con-

the

luxury of appliances.

"What'our
ho
be

five

cnmmnvi7„,

points:

g
? .our
?ur excluslve

allies—is

rtivonH van-

competitive tfdvan
tages oyer gas so the consumer can

the

ecutives, we have found that they
want
a
more
competitive Live
Better Electrically program. In researching appliance dealers, we
have found that we need a more
competitive
Live
Better
Elec-

trica«y

us"

P™gram.

consumer,

researching.

have found a

strong desire for electric living
and a desire for the competitive

facts that wiU 3ustify the
wav

clearlv

,ivin„

electrlC

vvhich

they

eve

f be"eVue-

)o,Qkahle

Wlth such an unmistakable
mandate the Live Better Elec-

Really Policy Committee crew
up a statement of policy.
This
document reads as follows:
"The broad,

research tells

summarized

all our

hasten the movement af gas ^ i
t?ward the admitted goal oi total
® * £ \lvmgL
describe

g've the

I®"1 'me'sl1?
(Si V1"8( app :

utilities, the marul"

and

choice. In researching utility ex-

SSlbfnt. p"rchases'

lor

industry

facturers

Gas Users

assignment of our

obvious

Tt-e

weigh the facts and make a w

woman.

initiates

MARKET

LIGHT

but

rather

easier to

the

income
class)
feel
that
,
cci
working at housekeeping is necessary to gain and hold the affection

bei

(that is,

women

middle

and

ELECTRIC

this,

Hastening Exit

majority

all

•

mits

owners

business.

Unr„

Cumberland Avenue

appliances. It is functionally less efficient. Gas is oldfashioned—almost everybody ad-

ducted among middle income fam¬
ilies in these 11 cities—

WORLD

176

developments

0f new

way

gas

who

that

how the family benefits

emancipated

HARTFORD

|.be
j,n

advertising
sumer see

bands

THE

limited—people expect very little

the energy to run them is to create

time

resources

has a minor piace in our way
iiving. its future is definitely

future—but some consumer groups
are
moving
less
rapidly than

only

weak.

not know how to

myriad industries find employees, markets/

factor

tion, they

By contrast people tell us that
gas

owning and using appliances, Obvicusly, the challenge to those

have the notion it is expensive,

living. Our reasearch
the American public
expects to live electrically in the

prime

values

wives

with

comfortable living. It is
luxurious,
pleasurable.
Electricity per se is a mystery few
care to understand. Many people

lined,

clean,

es-

pliances arise from their greatest

interviews

garded as a key ingredient of our
way
of life. It offers unlimited
future benefits. It means stream-

stitute for modern electric living.

Stress Benefits Outweigh Cost

Three

hundred

electric
or
gas?
Generally
speaking, electricity has an attractive personality. Electricity is re-

their

open

living

meaning.
It

and

homes—and

their

are

tising of the electric and..gas in¬
dustries, and makes its choice.

long

our

study

state

and

are

receive

depth

down
and

glamorous things

spending

are

time

tion

so.

Electrically story. Last winter, the
Program invested $27,000 in

both

you

pie

not the

May I present the evidence that

benefits

company

industry of which

way

House

Undoubtedly these
findings reflects the fact that peo-

motives

or gas.

also-rans.

are

question is this: When

she chooses an appliance, shall it

jet airplanes and wonder drugs

There

story?

doubt,

expects to do

public
you,

place,

Modern

Such

tag-

ing

utility

second
are

Car.

electric

the

for

9%,

New

total

(4) A so-called copy platform, a
set of guide lines used in develop¬

makers for

"Modern

means

modern

LBE

Finally, four ideas for

however,

mittee.

decision

Living

Appliances," either electric
Tied

idea. It

Indeed, is
the public really receptive to our

eager

(5)

ques-

living

Incredible as it
to 60% of the people

seem,

Modern

the

national advertising.
The advertising itself.

may

simple
modern

dees

you"?

pect

ward

(3) A statement of policy devel¬
oped by the LBE Policy Com¬

our

mean

the

asked

"What

public's attitude to¬
electricity? What does it ex¬

remarkable

study.

viewers

ap-

People Prefer Electricity
The next

When the interview started, intertion:

advertising
.

bene-

enjoy Modern Living."

...

points form the basis

entire

our

pr0ach.

living.

"Everybody wants to 'Live Bet-

All-electric

not

the

Finds
a

fits" of total electric

ter'

These five
for

the consumer

appeal to

the basis of the "family

Exactly what

(2) The results of

must

having

the

asking their opinions of the LBE
Program.

these

in the public's mind?

from

better

public?

life easy.

benefits" that reappliances do
jobs. The key idea is that

sonal and family

suit

industry

gas

them.

peak when she thinks of the "per-

these

minds

ap¬

The consumer's interest reaches a

cific

distinct

enough job to
people, how can
the

energy

4 '(5) The way to help them—to
give them the strong unselfish
motivation they seek—is to show
how appliances benefit the whole
family, instead of just making her

appliances—-"the use of speappliances" and "the work
specific appliances will do."

ers

the

strong
excite

interest to the manufacture

the

are

to the area which

mary

sell

have

that

tional level. If

own

The two

surveys:

our

pliances—both
is

stands

the ball at the local level—

carry

the

fact

is of pri-

come

that

Note

slightest question, that the public

(6)

Two

the progress of

second, to ask

EEI

Overcoming Industry's Disinterest

millions

two-fold:

Better

Live

proved

types of energy.

11-

ever.

ap¬

rated AGA

many

most

„

with

only the most incidental reference
to

here

purpose

Electrically pro¬
gram and briefly review the ad¬
vertising that has now been ap¬

of electric

doing

of advertising, as they
their own competitive

■

was

job

brands

promotional program. I

Commitee, I will

were

aggres¬

the

offers

addition, it

must,

'■■

while the allus $425 — a

year,

home

appliances

■V»

face

that the manufacturers

:,P':

■

the

sive, coordinated competition from
the gas industry. -■ The opportuni¬
ties were spelled out by Mr. Mc¬
Quiston in the following sentence:
"The
all-gas house brings us a
total of $52

electricity's

share of the appliance market has
in

less

industry is unified in

First, to report

that,

the last 10 years,

decreased

sent to

was

responded.

and

R. G. Macdonald

com¬

advertising ahead of the national

entire

our

unified,

the

ship."

was

summed up

AGA

show

that

truly

con¬

stress the words "national leader¬

business

.problem

would

public
is

than the gas

Electrically.
i ■■'

that

living

thirty-six

nearly twice

The

industry—uniting them be¬
the total electric

many

pliance dealers in all parts of the
country. Seven hundred and

that

of the elec¬

owned utili¬

questionnaire

electric

t, ^

made

national

the

half as
making

with

im¬

was

phrase "Electricity is Flameless."

Program

parable progress. I might add that
AGA's national promotional bud¬
get is about
120%
larger than
ours.
: :'y"
'•••'•'
■'

should be placed on benefits to the family

whole and not just to the

LBE

credited AGA

how end benefits of electric appliances outweigh cost

(1)

the

proving while only

advertising program these items are discussed by Mr. Mac¬

Donald:

that

In outlining contents of recom¬

public's preference for electricity.

:';.

haps it's significant that 86% felt

advertising than appliance manufacturers and for not capitalizing

i»(),,,
,

in presenting the
story of Electricity in the Home,
work

the
to

expects

consumers

i.»'i

shows

dramatically

study

the

manufacturers

Thursday, June 16, 1960

bacaus®
?y
los.ing
love
of husband and family if appiiwas
strong, while 71% rated the tricity per se—although this is the ances seem to make their lives
AGA
Program
favorably.
Inci¬ primary interest of the utilities to** ®afy*
dentally, AGA was widely praised which produce and sell it. The
(4) Women wa t appliances, but
by the electric utilities for its consumer's interest rises as we they need our help in justifying

industry's promotional program, Mr. MacDonald

reports on the progress of the "Live

Our
that

that the national electric program

Electrically Program

Mindful of the gas

was

how

out

interesting that the answers of
all four groups were basically the
same.
Only one out of three felt

By R. G. MacDonald,* Vice-President, Marketing, W est Penw Power
V

and

objective

The

Minneapolis;
(1) The term "modern living"
Mass.; and means modern appliances.
«
•*(2) While people talk about ap-

Angeles; Miami;
Omaha; Springfield,
Washington,,D. C.>
•

they felt about the
LBE Program in its first years. It

Company and Chairman, Planning-Task Committee of Live Better

managers

managers.

residential
advertising

-i..

vice-presidents,

sales

Key to Electrifying Sixties

utility chief executives,

sales
^

Financial Chronicle

The Commercial and

(2608)

strategic objective

'can « 'the' -L1W Better < 'Electrical r
.

following

kilowatt-hours by

iesi
featur-

competitive

equip-

Program
dential

jng

specific

sell

xts

t V

Volume 191

Number 5960

The Commercial and Financial

Chronicle

PICTORIAL

|ng"
ap-

Bond Club of New York

va-

tost
>ack
tove

fpliives
but

ring

pasis
ap-

hen

111 it

[ally

Raymond D. Stitzer, White, Weld & Co.,
incoming President;
William B. Chappell, The First Boston
Corp., retiring President

racre-

Paul Devlin, Blyth

& Co., Inc.; Lee M. Limbert, Dean Witter <ft Co.

Maitland

Ijams,

L. F. Rothschild

C. Langley & Co.; Walter W.
Hess,
Co.; J. Hindon Hyde, Halle & Stieglitz

Jr.,

our

ited
lam-

tble.
few

•pie
that
'ay

|tely
ittle
ints
lon-

>ld-

ad-

|tnge
of

inmd

tlm;ho

kub-

jing.

Allen

lotal

Nix,

Riter

Jackson

&
A

Co.;

Allen

Curtis;

Ernest

Robert

lore

Du
W.

Bois, Wertheim A Co.; David J.
Borkland, Jr., Tucker, Anthony A
A Co.

C. Johnson, Kidder,
Peabody

Lewis,
R.

Paine,
Day;

Webber,

Ernest

Altgelt, Jr., Harris Trust A Savings Bank; David J. Lewis,
Paine, Webber, Jackson
Curtis; G. Norman Scott, Estabrook A Co.; Earl K.
Bassett, W. E. Hutton A Co.;
Kenneth A. Kerr, E. F. Hutton A Co.

ireh

Iblic
the

pups
lhan
lob-

pers,
led

has
I
rho
?ms

fact
love
gas

ltly
lhan

lour
Inu-

to
sers

ital

|ug:ibe
lan-

Philip K. Bartow, Drexel A Co.; Harold H. Cook, Spencer Trask A Co.; Robert A.
Powers, Smith,
Barney A Co.; Blancke Noyes, Hemphill, Noyes A Co.; Avery Rockefeller, Jr., Dominick A Dominiek

Leo G.

|can

Shaw, Ladenburg, Thalmann A Co.; Homer J.
O'Connell, Blair A Co. Incorporated;
Joshua A. Davis, Blair A Co. Incorporated

rise
lexley

Live

Irej
we
ore

lec-

(ingr
a

ling

live
trie
icy

Or land K. Zeugner, Stone A Webster

Securities Corporation; Raymond D. Stitzer, White, Weld A
Co.;
Robert W, Fisher, Blyth A Co,, Inc.

James

Topping, J. D. Topping A Co.; Francis
B.

Coleman, Gregory A Sons; B. Winthrop Pizzini,

W. Pizzini

Co.

Commercial and

The

PICTORIAL

Financial Chronicle

. . .

Thursday, June 16, 1960

Annual Field Day

Robert
Dean

Hatcher,

Witter

Jr.,

Co.;

Chase Manhattan Bank; Robert G. Dillon,
Elmer F. Dieckman, Glore, Forgan A Co.

Austin

Patterson,

First
First

Boston
Boston

Corporation;

Robert L. Harter,

Corporation

John W. Carleton, Eastman
Frank L.

Dillon, Union Securities A Co. (Boston);
Lucke, Laidlaw A Co.

ityMzhi tMiUsM
F/vdIt
>**>»>*>&:

Vw/;'j

MB
■*:

Edward

John

Edwin

Baker,

Jr.,

David H. Callaway, First of Michigan
Dwight S. Beebe, Freeman A Co.;
Hager, Halsey, Stuart A Co.

Fullerton Peet, Burns Bros A Denton, Inc.;
James F. Colthup, Freeman A Co.;
Albert

Kenneth

Howard,

Nelson R. Jesup, Clark, Dodge <fi

A Co., Inc.; August F. Huber, Spencer Trask A Co.;
Reynolds A Co.; Brittin C. Eustis, Spenter Trask A Co.

Uhler, R. S. Dickson

A. Hogle A Co.; Alfred J. Ross, Dick A Merle Smith;
Stanley A Co.; John C. Curran, Van Alstyne, Noel A Co.

Morgan

John

Corporation;

Worthington
R.

Young,

Darnall

Co.;

Robert A. Don, Granbery, Marache
Clark, Dodge A Co.

•

•'•

;/;^V;<Vo*T''

Co.; Glenn

Hartranft,

Mayo-Smith, Blair «£ Co., Incorporated; John C. Maxwell, Jr., Tucker, Anthony
Jim Cooper, First Boston Corporation; Fred
Wonham, G. H. Walker A Co.;
Richard C. Egbert, Estabrook A Co.

Day;

Wallace, Bache A Co.; Henry L. Harris,
Goldman, Sachs A Co.;
Wm. E. Pollock A Co., Inc.

H. Albert

Aschen,

Volume

191

Number 5960

The

Commercial and Financial Chronicle

PICTORIAL

Friday, June 3, 1960

Edwin L.

Beck, Commercial & Financial Chronicle; Malon S. Andrus,
Malon S. Andrus, Inc.

Ralph

Hornblower,

Jr.,

Hornblower
John

John

Lokay,

Shearson,

Shear son,

Lewis

Weston,

Hammill

Hammill &

Goldman,

The

&
Weeks; Edward Glassmeyer,
Valentine, White, Weld & Co.

First

Bnesel,

Boston

Blyth

Co.;

Edward

Selding,

Walker & Sons

Spencer

Inc.;

Andrew

Curry,

Nelson Loud, F. Eberstadt A
&

Ames
Bank

Co.; Wright Duryea, Glore, Forgan & Co.;
Co.; John J. Cronin, Shearson, Hammill & Co.

Thompson, Joseph

Jr., Kuhn, Loeb & Co.; William B. Chappell,
Corporation; James F. Burns III, Blyth & Co., Inc.

Co.,

Sachs

McKean

Richard

Trash

Ballou,

Thomas

Co.;

Jay

Manhattan

Chase

Cahill, Chase

Manhattan

Thors, Asiel &

Co.;

<&
of

Co.

New

Co.; Eugene Treuhold, L. F. Rothschild
Co.; Emmons Bryant, Blair <ft Co., Incorporated

Incorporated; Rollin C. Bush,
York; William R. Kaelin

First

National

Bank; George A. Barclay, Kean, Taylor & Co.; Arthur
Bank; Sunny Sundstrom, Schenley Industries, Inc.

Marvin

Dean

Levy, Lehman Brothers;
Co.; Enos Curtin

Witter &

Robert

City

Swinarton,

Lane,

The Commercial and

PICTORIAL

F. Donald Arrowsmith, Van Alstyne, Noel A Co.; Donald D.
Dominick

Dominich;

Financial Chronicle

Rosenberg,

Asiel A

Mackey,

Herbert

Frederick S. Robinson,
Co., Inc.

Marache, Jr., Granbery, Marache
Baldwin, Reynolds A Co.

Co.;

Richard

Co.; Hudson B. Lemkau, Morgan Stanley A
Co.; Eugene G. McMahon, J. Barth A Co.

Co.;

Frank

Lucke,

Eberstadt, F. Eberstadt A Co.; Charles W. Rendigs, Jr., Bache A Co.; Henry F. Willems,
Hornblower A
Weeks; Frank J. Lockwood, Glore, Forgan A Co.
i

Van Alstyne,

...

,,r

^•'

Thursday, June 16, 1960

Henry

Stravitz,

Swiss

American

Arthur

Burns,

Dominick

Corp.; Calvin M. Cross, Hallgarten
Zucherman, Smith A Co.

Co.;

Dominick; George E. Nelson, Gregory A Sons;
Co.; Charles S. Bishop, The Hanover Bank

James

Wolff,

Raymond

Smith,

Weeden A

•

George P. Rutherford, Dominion Securities Corporation; William S. Wilson, Montgomery, Scott
Pierpont V. Davis, Harriman Ripley & Co. Incorporated; David Van Alstyne, Jr.,

Garet O. JPenhale, Grace National Bank; J. Raymond Boyce,
Auchincloss, Parker £ Redpath; John J. Clapp, Jr.,
R. W. Pressprich & Co.

Laidlaw A

Andrew W.

Sleepy Hollow Country Club

Frederick S. Robinson A

Samuel

Noel A Co.

>- J--1

VV'*

1,1

fcafoWW*!

if.pl

& Co.;

John

Kelsey,

Union

Eastman Dillon, Union Securities A Co.; Laurence C.
Keating, Eastman Dillon,
A
Co.; A. Peter Knoop, Auchincloss, Parker A
Redpath; Elliott Bliss,
Halle A Stteglitz; Richard N. Rand, Rand A
Co,

Securities

Volume

191

Number 5960

The Commercial and Financial Chronicle

(2603)
within

ment

the

total

electric

living concept.
"This

cal

goal dictates

these

tacti¬

objectives:

"(1)
ence

Create

customer

for electrical

competitive

fuels.

This

prefer¬

that

use

rectly

with

di¬

other

means

selling
the
benefits of electricity and, with
honesty and good taste, calling at¬
tention to the advantages of elec¬
tricity as compared with its com¬
petitors.
"(2)

For maximum effect, con¬
centrate this effort on only the
most

•

critically* competitive
which

jects

safety,

sub¬

Range;
Heater; Dryer; Heating and
cooling, and Medallion Home.
"(3) Blend HOUSEPOWER and
Lighting
into
the
advertising
now

"(4)

flameless brings to mind a won¬
derful picture of electric living—

positive,

truthful

and

strongly
the fol¬

competitive.

Therefore,
lowing Copy Platform was writ¬
ten and adopted:
.

"(1)
with

sharply

other fuels.

ploiting

the

competitive
this

exclusive

ex¬

consumer

national

co¬

11<>■

•

■,, .ii'

•

ELECTRICITY IS FLAMELESS

"(2)

Persuade

audience

our

her

crease

the

that

stature

woman

she

will

in¬

smart

husband—by using electric appli¬

preferencebuilding job with the local selling

ances.

effort of member

members of the family

ordination

the

utilities.

Multiply the effect of the

"(5)

at all levels by encour¬
aging cooperative effort by other

program

electrical

industry members."

With this set of objectives com¬
mitted to paper, the next step was
to

organize what is known in ad¬

vertising

Copy

consists

This

the

selling

themes that go into the ads them¬

selves—words,

phrases

and

ideas

that must be present in all ads.
not

three

advertising man my¬
told that there are

self, but I

essential

effective,

ingredients

all

result-producing
ads.
to isolate an

First it is necessary
exclusive

benefit

consumer

for

product—something that sets
product apart
from
all
others.
Second,
there must be
simplicity, an expression of this
your

your

exclusive

simple,

benefit

consumer

understandable,

benefit

ing

do.

Flameless

Electricity

is for the

its ex¬
competitive advantage—
the
flame.
Every AGA
ad,
in
print or on television, hammers
clusive

relentlessly at the speed,
modernity, quality and economy
represented by the flame. There¬
fore, in an attempt
to
under¬
stand our competition, and find
away

our

exclusive

own

the

program

and

went

advantage
of

theirs.

advantage,

heart

the

discovered

line

our

the exact opposite

was

Electricity is flameless.

Researchers went into the field

again.

They asked

simple
this

question:

phrase,

cooking,'
mind?"

'flameless

what
Over

comes

and

this

consumers

"When

over

you

see

electric
to
your
and

over

research.

our

tive

sell¬

the

en¬

LIVE

BETTER

talking about
told

has

that

and

the

competi¬

advertising,

that the con¬
wants competitive facts on

sumer

same

zines
the

run

We have

ads—the

spadework

has

given

Statement

our

Policy, and it
Copy Platform.
the

gas;

has dictated the
Now let's look at
of

product

and

basic

the

all this
adver-*

tising program for the rest of 1960
all

and

Here is

1961.
This

family enjoying the benefits
electric water heating—not a

housewife
tion

tric

less

for
it

taking it

electric

that

heating is so
not say

does

copy

water
know

safer,

without saying

comparative

matically

heating

that

the

testifies

truth

mind.

asserts, in complete
honesty. "Only Elec¬

and

tricity Provides Flameless Water

Heating."
cluttered,
this

—

Note

the

clean, un¬
personality of

simple

forceful

the

our

industry

American family.

Then

there

dryer ad.

The

the

clothes

new

use

There

is also

implication of benefit for the

family instead of simply

ease

for

the housewife—the rationalization

she

needs

in the

same

and

range

cooking

means

"Better

includes

HOUSE-

When

buying

other

that

ads

Post"

"Better Homes

and

the

contribute
this

full

Scozzare,
Secretary.

all

rightfully

address

Cavalier & Otto

Convention

Institute,

Formed

the

by Mr. MacDonald before

Annual

J., June 6,

the

Edi¬

Atlantic

City,

1960.

SAN

FRANCISCO,

to engage in

Partners

Otto

Paul-Mark Formed
THIENSVILLE, Wis.—Paul-Mark,

1961,

17th

will

run

Alfred

was

bacher &

advertiser

formerly
Co. Mr.

Homes &

in
specializing

business

listed issues.

Officers

Paul

are

the

president,
Mrs.
Frederick, vice presi¬

dent; and Mrs. Sharon M. Splaine,
secretary and treasurer. Mr. Fred¬
erick
Co.

formerly with Loewi &
Incorporated.

Also

tiglieri is engaging in

businessv from

member

the

new

Street

under

the

Stanford

Berry Opens

offices

the

Midco

take

sharply

Pa.

—

office in the
under

the

Investment

Stanford
a

branch

Building
of Edwin

management

Palmer.

A message

for

GROWTH-MINDED MANAGEMENT

interested in

with four ideas

now

specifically to the
other

and

officers

and

power

huge stores of minerals and chemicals, low-cost fuel,
—

water

and other factors relating to industrial opportunities.

pres¬

the

utility industry:

(1) It is evident from all of
research that

our

advertising must

our

be competitive.

There is

investment if

point

advertis¬

our

GREAT

you'll find

ing is not competitive enough to
business from other types of

win

fuel.

must states the

electricity

as a

for

case

I KM rtl ICTDIJLI

service to the pub¬
.

lic

the

public

industry's
nities

will

make

can

wise

realize

not

magnificent

J 1^1

w w

I K

the

opportu¬

POTENTIALS

accident, or inertia, or
by letting things take "their nat¬

ural course."

We will succeed, as
other American business does,
only by having the courage and
imagination to compete.

in Treasure Chest

any

(2) We hope that

—

the Utah, Idaho, Colorado,

will ask

you

gram—using the word "flameless"

and

Jay

"Better

heater

Post"

854
name

Corporation has opened

Build¬

ing.

firm

Corp. Branch

PITTSBURGH,

TULSA, Okla.—Aaron S. Berry is
engaging in a securities business

largest advertiser in

May I close

our

securities

Central New York Investment Co.

or¬

from

offices

Gardens." and LBE will

addressed

UTICA, N. Y.—Salvatore J. But-

ganization
is
Mark
J.
Splaine,
previously with Loewi & Co.

that

subject of house-heating.

electric

was

Close with Four Ideas

idents

Schwa-

Central N. Y. Investment

Frederick,

Gloria

the magazine. Five single page ads
will run in "Reader's Digest," all
on

with

Cavalier

There will be

issue

every

Jr.

Co.

securities

magazine among 1,350 advertisers.
There will be 15 ads in the "Post,"
ranking LBE 17th.

Otto,

limited partner in Dean Witter &

magazine, making LBE the
largest

Cyr Cavalier. Mr.

at 43 Parkview Drive to
engage

Gar¬

ads

securities business.

are

Inc., has been formed with offices

few words about media.

Coast

Calif.—Cava¬

lier & Otto has been formed with
offices at 235
Montgomery Street

dens."
Just

and

family

coopera¬

allies—so

our

Vice-President

and William St.

Living. Spreads like this will
in "Life," "Saturday Evening

run

ISLAND, N. Y.—Astrel

Securities Corp. has been formed
with offices at 25 Central
Avenue
to engage in a securities
business.
Officers are Aaron
Kessler, Pres¬
ident and
Treasurer, and Joseph

utilities, all manufac¬

Electric

son

Finally,' in
pictures,
the ad
talks about the competitive appli¬
ances, HOUSEPOWER and Light
for

all

the 28th

clean."

ask

all
and

♦An

families

from

com¬

benefits.

attention

in "Life,"

turn to electric house

our

Medallion

And
the
headline
specific benefit: "To

may

individual

the.

ads

Gardens."

the

com¬

electric

voice

people to tie in your local
promotions with the national pro¬

water
run

Evening

Homes

heating,

the

dryer,

ads will

"Saturday

electric

will

format for the electric

The

range.

initiate

There

process.

tion

all

companies

affair.

thing about
flameless electric, house heating is

choice.

strong

same

the word flameless.
the

tasteful

but

communication from
to

have

turers

your

n g

all

and

plus

combination

are

this concept, it seems
desirable and good sense

for

maga¬

for

right,

the most wonderful

auto¬

comes

reader's

headline

The

panies.

Form Astrel Securities
STATEN

easy.

water

The

living.

The cap¬
the picture reads: "Flame¬

1 i

be the second

water heater ad.

company
pany—we

Medallion
Homes, the people who have the
experience to testify that total
electric
living is comparatively
better. The centerpiece of the ad
is electric house heating,
since
heating is the heart of total elec¬

"Life"

and

basis for

Electrically program,- there is no
such thing as a
straight electric

things in particular. These

actually

electricity
the

industry prospers, so does
each part of it. When we consider
the objectives of the Live Better

this

ads,

Gold
call

testimonials

are

format

new

electric

the

Digest.

ads.

to three

the

appliance

our

"Reader's

which to base her choice between

flameless

program

the
industry members
appliance dealers want

given:

1960

kind will

So far I have been

same answer was

1 The

benefit

YOU

again, the

POWER and Lighting ads.

living bet¬

we are

ELECTRICALLY."

AGA

that

all

prominent and con¬
sistent display value to the theme

electric

has singled out

program,

What

family.
"(4) Give

safe."

The gas industry, with a $6 mil¬
lion
investment
in
its
national

picture

electrically.

memor¬

everything

Project

tire

Third, there must be
repetition of this exclusive con¬

sumer

ter

able words.
a

"(3)

Platform.

basic

Ads

Home

that

Electric house

heating is practical.

total

home manager—in the eyes of her

for

different direction.

heating
is
comparatively
new.
Perhaps we are now in the stage
of
development where the best
thing we can do is tell the public
that
there
is
such
a
thing as
electric house heating, as the ad
does, describe the principal com¬
petitive
advantages, and
assure
people that this new form of

benefits which stem from the fact

are:

possible.1

Provide

fnbdern-

and

saying safer,
cleaner or more modern, the con¬
sumer
automatically volunteered
these
comparatives.
The
word

Water

wherever

cleanliness
Without
our

ity.

rich in natural

Land

Wyoming

area

resources

your

served

by Utah Power & Light Co. and subsidiaries

Telluride Power

Company ond The Western Colorado Power Co.

the

and

slogan "You Live Better
Electrically" and portraying the
family benefits of electric living.

This national program will not do

local job.

your

All sales

are

made

locally.
But keep in mind that
by repeating locally the selling

messages that are used

growing line of

stantially

in the Southwest...

(3)
The growth pattern

that has

that

years

The

areas

ets

capitalize

available

Live

agreed

should

Better

help

Electric¬

locally
up

the

(4)
was

Report

My last point is this.
Better

conceived

erated

request.

Electrically

for

the

and

benefit

brochure, "A Treasure Chest

minerals and chemicals; fuel, water and power

transportation facilities, market growth.

resources;

UTAH

It tells about the human

factors

conditions, unlimited elbow

POWER

known

room.

companies already here.

—

climate, living

It lists nationally

Inquiries held in

strict confidence.

The

S LIGHT

WRITE

TO:

D. H.

White,

Manager Business Development Dept.,
Dept. A 5 Utah Power & Light Co.,

CO.

Salt Lake City 10, Utah

program

being
of

28 page

oppor¬

national

substitute for the local job.

dial operated.

1959 Annual

will

new

Growing West". It is specific, concise, reliable.

It. discusses the almost inexhaustible storehouse of
raw

The LBE program is an
additional promotional effort, not

Live
Copies of our

company

set

in the

in¬

program.

telephones in service,

92 per cent are

the

local promotiohal budg¬
thus
reduce
ability to

and

tunities

Texas, Oklahoma,

Arkansas and Louisiana. Of the
total

Perhaps

from the

now serves more

144,000 telephones in certain

Write for

companies.

own

the

Our

direct

ally Program
from
a
separate
budget, rather than borrow funds

continued through 1959.

Company

than

leadership

each

finance

prevailed during the past several

needs

program

active

dustry's

effective.

leadership
and

nationally,

local investment will be sub¬

your

the

op¬
en¬

tire

electrical industry—not just
utilities, not just some util¬
ities, but for all electric utilities,
the

THE SOUimVESTERN STATES Telephone Company
3 00

M O

N'T GO

MERY

STREET

SAN

FRANC ISC O

C At I FOR N I

all

manufacturers

' electrical

equipment and all our trade allies.
It is imperative that all segments
of

our

industry recognize that,

•

Im^

C^hXHlkMJ^ (jjeil

<*4

sumpcm^

awfaimvM/mttiii n

fV 1
■"

Exciting Possibilities in
Electric Industry Research
By Philip

A. Fleger*, Chairman

'•?•

Research

whole

the

of the

Board and

Approximately $250 million annually is being spent

only is team work among the men
and

women

the

improve

the

production,

delivery

and

team

companies.

laboratories,

work

among

our

also
team
work among our companies and
our
many
allies:
the electrical

pro¬

There

research

the
independent
and the univer¬

manufacturers,

of research between the electric utility companies and electrical

manufacturers

broad

there

President

on a

groups,

if"

benefits of

provides

Besides projecting this figure, Mr. Fleger also

electricity.

Take, for example, the develop¬

\
u-

vide.

The

utility head refers to areas that could benefit from still

intensified research and discusses ways

expansion of research

including the
Research

takes

can

be glamorous and

can

:^i

ready

the al¬
leys and by¬
paths, the dark
and
winding
plore

that

often lead

cents

no-

where

he
station,

but

the

kilowatt-hour.

tem¬

pressures

plants.

What

area.

The electric

utilities, in turn, have
provided facilities for field test¬
ing, made suggestions for modifi¬

indus¬
his first

gas

opened
in 1882,

higher

facilities for research in this

cations

he sent
men
from
door
to
door asking
potential customers whether they*
would change from gas to electric
lighting if the cost were the same.
He found they would and that he
could compete with gas lighting
by selling electricity at about 25

ex¬

lanes

compete with the

central

constantly

must

exciting. It

within the

Before

try.

also be dull and plodding. Re¬

searchers

is
!i

could

forms.

many

of better organizing research

program

and

ther¬
has
taken place is this: the manufac¬
turers have
provided laboratory
and

electric

mal

zation of electric power in everyday living which research may pro¬

■'(

higher

peratures

conversion, heat storage and the—more glamorous—increased utili¬
■

ment

comprehensive insight into possibilities of direct energy

This

was

meet

operating conditions,

contributed

and

meeting

ideas

new

for

changing

require¬
ments caused by constant growth
the

of electricity.
In some
of the work, ■: university
research organizations have been
in the

use

phases

called

for assistance.

The

sult of this cooperative effort has

price he set.

been the

development of increas¬

Today, the average revenue per

that may, sud¬

denly,

:i
,'Tj

into

kilowatt-hour

corner

turn

bright

along

should

of the

illustration

these

made

paths that the
occasio nal

industry

during

the

past

research

And

Philip A. Fleger

chief

the

dramatic prog¬

electric

the

ress

little-travelled

in itself

serve

has

made

has

years.

possi¬

ble.

today's research is of an evolu¬
tionary nature. It is carried out

industry differs from that in most

along the main avenues, the broad
highways that past research has

'H|

revolutionary
discovery may be found. But most
of

;

basically

opened for travel.
forward

move

The
do

not

sults

these roads.

the

form

taken

bulk

together,

history,

that

the

public

Industry

served

interests
the

when

Josephson, in his re¬
prize - winning
biography,

■

v:
<*»

rMpif I

through

day,

"the world's first industrial
research laboratory."
As you all
know, it was there that the incan¬
descent lamp was developed and
the electric industry was born.

the

tory

'i;

Edison

develop

specifically
an

electric

set

out

system

were

well

through

ganizations,
able

learn

the

To¬

other's

This

other

our

trade

are

other

each

experience.

research

project
Uni¬

at Johns Hopkins

under

grant from

EEI.
suc¬

resulted

the

development

device

for

use

elec¬
treating

heart
rhythm during surgical operations.
The device, by the way, has been
interruptions

or¬

companies

what

effort

cessful

trical

doing and can thus build

that

versity

Institute,

seen

carried

ex¬

committees

Electric

Edison

Still another sort of team work

best

changed information freely.

calls Edison's Menlo Park labora¬

them, however,
are
in the area of research, de¬
velopment and study.
Nine

plants.

interest

companies

Matthew
cent

joined with the Atomic Energy
Commission, various service or¬
ganizations, and manufacturers to
take part in 26 projects aimed at
developing
nuclear
power
that
will be competitive with
power

can

their

and
Birth

nu¬

operation of actual nuclear power

companies learned, early in their

progress.

qonsist^) pf the construction and

can

quickly throughout
industry. The electric utility

our

the field

Since the passage of
the Atomic Energy Act of 1954,
132 electric utility companies have

produced from conventional fuels.
The
majority of these projects

companies, the re¬
both
our
evolutionary

disseminated

they

found

clear power.

our

revolutionary research

and

they make often
startling in them¬

seem

but

utility

Because there is
direct competition

between

discoveries

selves,

electric

the

other industries.

Research teams

along

Research

christened

the

fibrillator."
a

968

projects were either in prog¬
or
had just been completed
by EEI and its member companies.
I am sure that many of these proj¬
ress

would

normal

'closed-chest
seems

de¬

that

little research might be done on

the

general public.
"In¬
studies of over¬
splices," for instance,
are not likely to become headline
news anywhere. Still, projects like
this make up the bulk of electric
industry research and provide the
basis for continuing evolutionary
progress in the industry.
'
est

line

head

Electric

■:

dramatic developments
in the electric power business, i
Another important area under
in

result

study is that of heat storage. Here
a
subject of great significance

industry-wide basis, for com¬
panies often allocate their ex¬

penditures in different ways. How¬
recent EEI survey of

120
utility
companies
does
indication of the amount

give

of money

this

industry devotes to

our

activity.

According

This

1959.

the

these
companies
than
$6J/2 million

spent

survey,

of electricity. For instance,

zation
it

would be

they estimate they will be spend¬

ing in

of $8 million.

excess

These

totals

include both engi¬
non-engineering re¬
search, but they do not include
research in nuclear power.
For

neering

and

several

years,

concentrated

industry

our

vast

has
of

amount

effort in this promising area. Last

utility
companies
spent more than $100 million on
various phases of nuclear power
research, including the construc¬
tion of nuclear power plants.
In
electric

year

1960

they

will

spending

an¬

supply energy for heating to our
customers at times when the de^

clear

these

from

figures

that the electric utility companies
of
this
country are devoting a
substantial

amount

continued progress in the produc¬
tion

and

delivery

these

direct

however,

electricity.

expenditures,

must add the amount

electrical manufacturers spend on
for

electric

the

The

cost

naturally,

utility

this

re¬

included

the
effectiveness
of
seeding" as a means of in¬
creasing the water available in
the area of hydroelectric stations.
studying
"cloud

They are studying
of lightning.
They

of the equipment
the manufacturers.

been

estimated

between
an¬

health

lessen

appearance,

cost

the

needed

keep trees from grow¬

into power lines. They are
even studying the habits of wood¬
ing

in order to control the
these birds do to wood

peckers,
damage

poles.
Equally

People sometimes
say
we
are
living in the "push-button" era.
Before too long the push button
be

may

thing

tric

appliances

Let

True

Dimensions

Electric

Industry Research
the

But

our

cannot

research

fully

reflected

cents.

What will grow out of

research
ficult

not the

This 218-ton piece of equipment is only

PP&L—a

half the

Company in northeastern latitudes.

twin,

Together with

completes

the

scheduled

Company's

new

for

in-service

iden¬

300,000-

kilowatt, cross-compound turbine
ator

pioneered

the

Our

gener¬

the

Brunner Island steam-

electric station in 1961.

This

new

plant

is the second "outdoor" plant facility by

The

Company

pioneering is

believes

necessary

that

—and that PROGRESS is necessary to
success

effectively meeting customers'

needs, attracting and retaining
tent

people

and

maintaining

compe¬

investor

confidence.

PENNSYLVANIA POWER & LIGHT COMPANY

sound

to PROGRESS

from

known.

Not

fact that

■—the

bomb

and

the

may

sight,

And certainly

price tags.
efforts

tricity

capacity story for PP&L in

the coming year.
tical

concept

outlines

but not the details.

new

dollars

being done today is dif¬
predict accurately.
The

broad

are

atom

are

elec¬

is busy,
she will call the
shopping center over a two-way
TV-telephone. Merchandise
will
wife

the

appear

exploring fusion
the hydrogen

of generating

means

electricity.

the

kitchen, food will be
cooked, and served at

prepared,

direction

the

area

electric
direct

being devoted

industry

energy

Ahead,

there

including nuclear

the

conversion.

energy,

vision

raw

energy,

transmuted

ahead

will

day

energy

disposable

The

light bulb will be a thing
past. Instead, people will
be
using area sources of lif?ht.
Whole
walls
will - glow
-with

the

electroluminescence.
won't

progress

when
only
in coal was

And

you

need

flip a switch
to turn them on. All you'll need
to do will be to say the word "on."
But
you'll have
to
be
careful
even

about

mumbling.

When
a

dirt

collects

closet will

cleaner

and

open

carpet,

vacuum

will

emerge.
Automati¬
cally, it will clean wherever nec¬
essary

and

then,

silently, put it¬

and

away

closet

the

door.

One wall will probably be
up
you

giant

will

"live,"

grams,

the

bounced

will

world.

The

be able

comfortable

the

The

electronic,

manufacture

represents

Edison's

will

moving parts. The dish¬
only
be
used
on
special occasions, when the best
china is brought out. For every¬
day use, a small electric machine

satellites

range,

it.

serves

will

40% of .the energy lo.qked..„in-, a
lump of coal into electricity. This

2%%

the

food

the

and

washer

Australia

since

takes

freezer

days

will

There

that

refrigerator
with

electronic

programmed

time.

directly
into
elec¬
tricity. Our most modern power
plants are able to transform about

tremendous

computer

self

Much attention is

color,

screen,

course.

well

well known is the

principle
—

generate

the
so

electric

what

dishes.

dimensions

true

industry's

living in the future may be like.
If it is raining, or if the house¬

the

dollars

themselves.

for

describe

cooks

billion

past,

the elec¬
will seem

use

thinking

then

the

crank

Model T. In many cases,

from

the

In
other
words, total electric
industry
research
expenditures,
including expenditures in the nu¬
clear power field, are currently
running in the neighborhood of

one-quarter

developments

exciting

being explored in the way we
will
be utilizing
electric power.
are

appliance

annually.

are

impairing
their
in order to
of
the
pruning

without

trees,

behavior
learning

the

the growth of

slow down

how

price
from

use

approaching icethunder-storms.
They
are

and

money

the

with

experimenting

nually.

ONLY HALF THE STORY

other uses

radar to warn of

outmoded

other $132,000,000.

$100 million and $125 million

great advantage in

electric house heating if we could

re¬

1960,

year,

has

generation and utili-r

for both the

mand for electricity for

the cost of research accurately

the

i-h

could

cell. Any one of them

fuel

is relatively

buy

in¬

goal,

this

reach

low. This can be done
scope and
if some way is developed to store
magnitude of the electric indus¬ the heat over a period of time.
try's research effort is in terms of Considerable research has been
the
dollars
being
spent.
Of done toward reaching this goal.
course, it is difficult to calculate
Today, electric companies are

search,

attempt

cluding magnetohydrodynamics,
thermoelectric,
thermionic,
and

the

measure

companies.

Research

Industry

Expenditures

One

research

•

inter¬

little

seem

frared pyrometer

electric

Another example of team work
can

greatly increased.
At the same
time, it may be possible to do
away with most of the bulky and
expensive
turbine-generator
equipment we use today. Many
paths are being explored in the

ever,

ingly efficient steam plants.

residential

electricity is just about l/10th the
price Edison charged.
This fact

new

world.

from

Of course, much of the research
being carried on by the electric
companies is conducted solely by
the companies themselves. In fact,
a
recent
survey
by the Edison
Electric
Institute
disclosed
that

re¬

Thursday, June 16, 196.0

being used.
But through direct
conversion; the percentage may be

equipment in order to

actual

somewhat less frighten¬

ects

sities.

multifold

ing name.

finding

fabric

electric industry research the key
pattern is "team work." There not

Duquesne Light Company

gram

Work

Through

The Commercial and Financial Chronicle

(2604)

Team

Wt^i-hW

«**wuwiu*«ww

air

made
On

receive

from

pro¬

Europe,

anywhere

The

screen.

signals

else

will

living room off
circjing the .earth,
your

simply

the

all

set

house

year
a

will

round.

control

You
at a

desired temperature and humidity

Volume

191

Number

5960

driveways
the

around

house

now

storing energy to level off peak
loads, either for a customer or for

the volume of work is to increase.

heated,

Snow

ties.

Interior decorators may even

using

begin
The

them

doors

garage

automatically

oddi¬

ornaments.

will

open

electric

and

auto¬

will

mobiles

glide out onto elec¬
controlled
highways

tronically

that will make

steering unneces¬
sary.
The driver will be able to
read, or sleep, watch television,
or just listen to the record
player
in the back seat.
know

it sounds fantastic.

will

what

the

developments

probably
things

Yet,
amazing

most

electric

will be the

imagine today, things which only
tomorrow's
able

researchers

will

dream

of, develop,
eventually bring into reality.
Organizing
in

Future

Electric

the

How

and

the

nature

industry's research
So the question arises:

research

our

quate?
Now,
our

there is

ade¬

program

denying that

research activities

exceed¬

are

ingly broad in scope. On the other

hand, there are

number of prob¬

lems that

probably warrant more
attention than we are giving them.
The vast potentiality of direct
energy conversion pobably justi¬
fies

intensification

some

our

efforts in this field. Other methods
of

generation, such as wind power,
sunlight conversion, and radia¬
conversion

tion

overlooked.
also

been

nomical

should

Further
of

not

studies have

suggested

use

the

eco¬

diesel-driven

and

turbine-driven generators for
peaking power, stand-by power,
gas

and

combination

with

steam

plants.
The

forecasting of future loads
to

tance

be done

utmost

the

defining of the
involved and formulating

factors
a

the

impor¬
every
electric
utility
A lot more work needs

company.
to

matter

method of

tors

tion.

combining these fac¬
electric computer opera¬

by
'

■

As load

which

clearly

ity

••

concentration and gen¬

electrical

This

Characteristically,

How

companies

raises

should

companies

another
the

must

question:

electric

utility
prob¬

these

approach

lems? Should the research be car¬
ried out by one company,' by a
group

of companies,

centrally

directed

through

program

sup¬

The subject is of the utmost im¬

industry.

problem

Certainly

should

separately.

Some

best

suited

each

considered

probably

individual

are

action,

joint action by small
groups of companies, some to ac¬
tion by the industry as a whole.
But the general shape and direc¬
tion
of
our
industry's research
some

activities deserves

serious at¬

our

tention
and, in fact, are being
carefully studied by the Edison

Electric

Institute

the

present

time.

As the EEI research program is

conducted,
suggested
re¬
projects are gathered by
the Research Projects Committee
from the engineering committees
search

other

committees

the

ing facilities become possible.
the

field

Proposed

utilization, in¬
being aimed at
of the applications
of the heat pump, at developing
a
satisfactory electric incinerator,
developing more electric garden
tools, and at a basic study of the
possibilities of obtaining a lowweight, high-capacity storage bat¬
tery of moderate cost.
Such a
battery would make the electric
automobile
practical and might

Financing Plan

Therefore, the Institute's Board
last

decided

December

tigate the possibilities of financ¬
ing
an
expanded
Institute
re¬
search program on
the basis of

voluntary, sliding-scale contribu¬
tions along the lines of the Live
Better Electrically program.
It
now
appears that the Board will
be in a position to take action on
proposals for such a program in
September.
While

provision will have to be

for

made

some

method

new

The

Author

letter

financing Institute research, there

the

other hand,

in view of the increas¬
ing importance of research and
the rate at which this activity is

be¬
new

division—the Research Division—

organization.

This

division would have the

same

"for

same

brethren

fees,

drinks

"And

the

nics

what

question

gatherings,
days, pic¬
you, raise
a

"When

field

have

which

the

over

assorted

labeled

has

bothered

For

years.

there

at-homers ante

the

as
the
Engineering and
Operating, the Sales, the Account¬
ing, the Customer, Employee and
Investor Relations, and the Gen¬

are

each of the five

CLEARWATER,

Fort Harrison

Form

at-

—

David

Street.

Security Service

CITY, Utah — Secu¬
rity Service, Inc., has been formed

en¬

with

offices

tSreet

3318

engage

South
a

State

securities

business.

Ralph E. Ellingson is
principal of the firm.

Robert Harris Branch
SOUTH
M.

accounts, etc.

ORANGE, N. J.—Robert
Harris & Co., Inc. has opened

branch office at 12 South Orange
Avenue
under
the
direction
of

that

"Granted

Fla.

SALT LAKE

"Then, why the extra or multi¬
plied fees when raffles, pools and
dice normally extract the cash un¬
der voluntary conditions. Besides,
there are the opportunities, (two
way of course) for moving some
dusty inventory or dining up joint

their

tap

groups

segregation."

Passell is engaging in a securities
business from offices at 10 South

endearing contacts.

during and

It would be

Projects
Committee, which has
been doing such a commendable
job for our industry.- Complete
control over the program would

supposed to provide

David Passell Opens

up.

friends

alleged hos¬

(Special to The Financial Chronicle)

are

business

arrange

Court and have

mind, these out-ofinvited, cajoled and,
sometimes, pressured
to
attend
the functions. They are presumed
be

"Keep

towners

the

golf handicaps.

comes

whing-dings in the fu¬
ture, let's not forget the Supreme

growing tendency, and a growing
write-up in- assessing the out-oftowners for the privilege of being
guests a number of times what
the

when

pitality

technique. All
itinerant
are
lodge brothers and

members

country.
whether

free."

for

local

stature

eral Divisions of EEI.

plea for groups to

invitations

should be treated the

the

within the EEI

host-guest relation¬
practice?

Treat"

Dad

And

friend¬

practically impos¬
many. Rather, it is an
advocacy
of, the
true
"Dutch

sible

homers and the bouts and/or routs

be every reason to
present controls ex¬
ercised in deciding what projects

nod to
19, also
brings forth the various meetings
of groups and associations in the
Old

Dear

the

expanding, considerations
ing given to establishing

Are

patsies to

deficits?

element

This is not

roses,

undertaken.

the

That would

"June,
the
month
brides, graduates and

appears

the

extend

—Editor.

continue

should

ship, or the
ship in such

his

that

most

where

following

the

requested

extent for such events.

out-of-towners

carry

identity not be disclosed publicly.

inves¬

the

securities industry throughout the

developed.

stitute.
Assisting
the
Research
Projects Committee in evaluating
the proposals is a Liaison Group
composed of representatives from

practically
treasuries

all

Edward

Dieterle.

ARE YOU "NEW PLANT" PLANNING?

lie with the Research Division and

mittees

engineering

from

and

the

com¬

Sales

and

Accounting Divisions. No project
is submitted for approval by the
Institute's Board until it has been
studied

mittees

the

appropriate com¬
feasibility and
value, and until a specific pro¬
gram,
with estimated cost, has
been prepared for it.
This

its

method

operation

as¬

that research undertaken by
will be devoted to projects

sures

EEI

are

interest

general

the member companies and which

offer

reasonable

expectation

the

further

stantially.

Institute

has

increased

sub¬

addition, a survey
of
prospective research projects
by the Research Projects Commit¬
tee
clearly
indicates
that
this
trend will not only continue but
actually will accelerate if the nec¬
essary funds are available.
But
research conducted by the Insti¬
tute

tute's

financed

out

funds,

general

Insti¬

the

and

the

EEI

has

Directors.

Board

vtprU

(

'in

Research Division within the

EEI

framework

natural

out¬

industry's present
activities. Its formation

growth
research

the

would

give research projects their
standing among industry
activities. At the same time, it
would strengthen the framework
proper

which, at

point in the future,

some

might be called upon to bear the
added weight of an enlarged re¬
search

effort.

tion

would

flict

with

Such

not

the

with

electric

con¬

activities

companies

you're

undertaken

activities

the

organiza¬

replace

research

individual

However, in recent years, the
amount of research undertaken by

creased research is

study

some

Behalf

Of Invited Guests

built around the present Research

practical, beneficial results.

generat¬

merits

In¬

different

new

now

and

the

Institute's research program must

which

basis

problems of system application or
operation fall into this category.
These are the problems which the
electric utility
attack.

of the

scope

electric util¬

areas

concern

erating plant sizes increase, volt¬
ages used
for transmission will
also increase, unless appreciably
distribution

Consequently, if the

A Plea

Institute's research program in the
future iff to be determined on the

manufacturers,

direct

company.

proportions which
additional funds, if

require

projects
which are proposed by the vari¬
ous
committees, rather than by
arbitrary
financial
limitations,
some new method of financing the

Some of these

to anyone but

in-

are

the

which electric

going on, but
might benefit from inten¬

sified effort.

tric

areas

research

reached

will

portance to the future of the elec¬

of the electric
program.

the

dusty

Research

developments
into reality is

dependent

whole.

examples

ported by all companies?

Utility Industry

brought

largely

these

soon

will

for

the company's
system as
These are just a few

living

are
not
among
the
have mentioned.
They
things we cannot even

(2605)

also have valuable applications in

too.

will

The Commercial and Financial Chronicle

paths

and

will

shovels

tke

and
they will be kept at
selected levels, automatically.
The

by small groups of companies. It

would, however, provide

regu¬

EAST-TEXAS

lar, accessible medium for the ex¬
change of information between
companies
concerning their re¬
search
make

would

activities.

Healthy business climate

(also

PICTURE

Central-Southwest location

possible for many of the
smaller companies which are not
able to do research work
to

own

WELCOME

CENTRAL

participate

Market accessibility

of their

this

See how this rich
is

farming region

developing into

area

highly diversified economy!

im¬

Stable local government

portant work. Nor would such an

organization
impede
the
com¬
petition
between
the
electrical
the

manufacturers

Choice industrial sites

AGRICULTURE

research

Transportation crossroads

field. This competition has proved

too

valuable

any

Profile of a

way.

Certainly

ward-looking

California Water & Telephone Company

research

155,000 telephones in diverse areas of

CALIFORNIA WATER t TELEPHONE COMPANY

Southern California. This
jw#UH

"1q5Q

inmr:

forward-looking,

ranks 12th

largest of the nation's almost

4,000 Independent Telephone Companies.
Copies of our
1959 Annual

Our water

Report

Los

available

divisions, located in parts of

Angeles County, portions of San Diego

for¬

Nominal

manner

MANUFACTURING

building costs

and

Wonderful year
climate

the

status

industry
in the eyes of our customers, in¬
vestors, and the public in general.
Research

has

part in the
tric

played

progress

industry.

our

Abundant natural

resources

Cultural-educational

of the elec¬

increasing

OIL AND GAS
MEDICAL CENTERS

great

'round

centers

our

PROCESSING

research effort and by organizing
ourselves
search

even

County, and on the Monterey Peninsula,

request

Excellent utilities

properly
publicized would do much to en¬

industry

provide water service to an estimated

LUMBER

Quality labor pool

hance

locally managed telephone company now

described

program

in the

carefully directed

provides modern service to more than

substantial,

GROWING company

have

disrupted1, in
.

the

can

benefits

population of 240,000 in those rapidly

growing areas.

variety of

this

effectively,
to

electric

ways.

Stimulating recreation

re¬

our

spread

multiplying

our

industry

strengthened and the pub¬

WAREHOUSING

Copies of the annual and quarterly
reports giving further information
on the Company's operation and
the territory served are available

service

upon

The results will

at least two-fold:

will be

out

continue

constantly

carry
more

DISTRIBUTION

request.

SOUTHWESTERN ELECTRIC SERVICE COMPANY
1

CALIFORNIA

lic will be better served.

Water & Telephone Company
*An

300

MONTGOMERY

STREET

•

SAN

FRANCISCO

CALIFORNIA

28th
June

address

Annual

Electric

1960.

COMPANY

Mr. Fleger before the

Convention

Institute,

TEXAS

Atlantic

the

City,

J.,

OPERATED

TEXANS

John T. Shewmake,

Edison

—

Executive

Offices:

—

SERVING

TEXAS

President

Mercantile Bank Bldg.f Dallas, Texas

CITIZENS

The Commercial and Financial Chronicle

(2606)

tion of this neighborhood approach

Supplying Electric Power
Is a Free Enterprise Job
By Allen S. King,* Retiring President, Edison Electric Institute
and President, Northern States Power Company
Electric

the job is too big for indus¬

try with a cogent reply showing the opposite to be the case. Con¬

in the eyes of the public

cerned with the industry's split personality
and the paradoxical situation that

the aggravating challenges stem

job it has done and is doing, Mr. King calls upon

from the excellent
the

industry to tell the facts about itself and our economic system to
"Main Street" in "Main Street" terms. He lists eight areas that an
educational program

should include, compares our electric power per¬

U.S.S.R.'s, and submits data on what our future per¬

formance with

formance will be and the

This

past
rewarding

year
one

grateful

cerely

Directors

capital spending it will entail.

has been a most
for me. I am sin¬
to

the

Board

Edison

the

Electric

the

able

valu¬

nity of serv¬
ing our great
industry as
the

Institute.

The

activity
this posi¬

tion

has

times

nation land dedication to an amaz¬

ing degree,

been

throughout the country.

long

tions

way

toward favorable solu¬

certain

our

national

seemed

have

and this would seem

taxing

very

terms

time

real

and

energy,

but it

Allen S.

confidence

permitted
to

areas.

that

some

our

most

aggravating

challenges stem from the very
excellent job we have done, and

give all of us
industry's

our

counter.

become

much

better

ac¬

quainted with the leaders of

our

industry in all parts of the coun¬
try. This is more than adequate

challenges

A year ago

may

en¬

at the New Orleans

Convention, I stated that it would
be

this

interest

the

many

connected

and
with

our

customers

varied problems
maintaining reli¬

■

have

always had

the

which

time

and

real love

utility

electric
has

business,

absorbed

all

working life. I have always had a
great deal of confidence in this

industry,

and

have

continually
viewed its potential with enthu¬
siastic optimism. Now—after hav¬
ing spent a year traveling around
people at meetings
of various kinds, I have gained an
even

company

our

business than

—

to get into serious

difficul¬ controlled,

ties.

greater feeling of confidence

for the future of
I had before.

year

that

thousands
is at
our

but
upon

by
thousands of in¬
are

owned

the neighborhood

companies

greatest challenges.

tional

level dividual Americans. These many
their owners are our neighbor s—
workmen,
professional
A consolida¬ farmers,
have

activities may be
our na¬

associations—we must give

emphasis

telling our story to
doing for people
and what we will be doing

now,

increasing the
use
of
electricity most of our
companies
haVe
been
growing
bigger and it becomes increasingly
difficult" 1:6
impress
upon
our
customers
our
identity as
in¬
vestor-owned
Companies
which
are actually an integral part of the
American free enterprise system.
This problem of maintaining the
identity of our organizations as
investor-owned
companies
is a

our

"Main Street" and in

In the process of

tric

for

the

purpose

Whatever
—on

what

seem

for

expended.

are

to meet individual

community and

national needs in the future.

wtatts

—

total.

Altogether from the beginning
1980 about $143.3

of 1960 through

but

nevertheless,

much

velopments
sibilities.

can

Our

has

dustry
with

absorbing

today's
and tomorrow's

de¬
pos¬

electric

utility in¬
great history filled
filled

romance

complishments

initiative—but

with

men

1980

our

cannot

ac¬

expect

electric industry has

done in
the past. They want to know what
are

doing

and what

now,

their

meet

needs

for
;•

The truth of this has been borne
out by several recent events.
newspaper

eral interest in the

and

report

The
gen¬

Rus¬

sia power industry developments,
and the comparisons which have
been

MANPOWER.

...

Skilled; Plentiful

CLIMATE

„

Sunny; Mild

lion

compared to about $3^2

lion

INDUSTRIAL SITES

...

Friendly

Choice

Our country's

1960.

national

bil¬

gross

product, disposable

per¬

sonal

incomes, and personal sav¬
ings are expected to increase with
the result that funds will be avail¬

able for investment

in the utility
companies to meet these tremen¬
dous

future

These

demands

forecasts

for

money.

indicate

the

basic faith of the electric compa¬
nies in the vigor and potential

Our

War II.

coun¬

try, seem to indicate that the eyes
of all of our people are focused
on our plans for the future.
We
able interest of

our

Congressional

leaders in the publication by EEI
of the forecasts of electric power
in this

country for 1970 and 1980.
short, it would appear that our
people are looking ahead and are
directly concerned with how our
industry is preparing to meet the

The

population trend, the
new households, and
continual adoption of new
electricity-using methods are all
among the guideposts taken into
account in making these forecasts.

formation of
the

The

magnitude

very

numbers involved in

the

business

our

—the billions of dollars—the mil¬
lions

kilowatts,

trillions

and

soon

of kilowatt-hours

—

the
are

admittedly immensely difficult to
comprehend. The growth we fore¬
see may seem to some to be fan-i
yet

—

know

dimensions of

that

the

industry today
would
have
seemed
e q u al 1 y
breathtaking if they were fore¬
casted only 20 years ago, at which
time

our

plant

our

was

investment

electric

about $12 billion—less
than one-third of today's total.

made between the develop¬

ments in Russia and in this

have also witnessed the consider¬

GOVERNMENT.

ex¬

to be at
of about $12 bil¬

expected

rate

annual

construction

new

okw

penditures are

great

to be too much interested in what

widespread
.

required to pro¬
plant
and
that is predicted.
In

equipment

tastic

additional

the

of the United States.

General Concern About the Future

FLORIDA BALANCE SHEET

will

billion
vide

compa¬
to look back very far, nor
nies believe, for example, that the
they have the inclination. More
over-all economy will continue to
and
more
we
are
becoming a
civilization attuned to the future grow at least at the rate it has
—perhaps, at times, anxiously— during the period since World

time

the future.

energy

will

electric

total

The

Predicts Hike in Capital Spending

His¬

tory is being made so rapidly to¬
day that most people do not have

ASSETS

ex¬

same time build¬ than double whiat it was ten years
ing up and transferring to the ago. It is expected that new con¬
companies some of the aspects of struction will require $51.9 bil¬
the industry image which would lion to be spent by 1970, and an
be of value at the local level. In additional $91.4 billion by 1980.

able power supply.

the country and visiting with elec¬

compensation
energy

have, and at the

maintaining the understanding

and

I
traveled around the country, to
emphasize the need of the "Main
Street" approach to our industry
problems.
Basically, the job of
serving electricity to people is
quite a personal and local activ¬
ity. Even in our larger companies
there is a neighborhood aspect to
all of our business dealings.
W6 continual one. Related to it is the
are truly operating right dbwn on
problem
of
making sure
that
"Main Street"
and it is only
people know that our companies
when we forget this point that we
are not "Wall Street" owned and
my

companies

reach 263,000,000 kilomore than twice today's

split

Our compa¬

future, and in our ability to meet

King

Whatever

has
me

operating

These facts should

electric

the

output will be in a new series of
personality in the eyes of
numbers—the trillions — reaching
Our
strength is in our great many people. That is, customers
a
total of 1.2 trillion kilowattrecord of expanding service to the may view their own local electric
hours
approximately twice to¬
homes, farms, and industries of company with approval — yet
day's total.
our
country — the unprecedented somehow they do not transfer
By 1980 electric company power
job we have done in bringing many aspects of this image to the
electric service and its benefits to industry as a whole. Instead, they producing capability is expected
reach more
than 492,000,000
all Americans. We have achieved seem to view the whole industry to
which is nearly four
world leadership in power supply in a different light despite the fact kilowatts
through the operation of our in¬ that the industry, as a whole, con¬ times today's total, and nearly
dustry as part of our free enter¬ sists entirely of independent in¬ twice the prediction for 1970. The
prise system. By maintaining our vestor-owned companies like the total electric company energy out¬
industry as
an
active part of one they feel serves them so well. put is expected to reach nearly
American free enterprise we will We will have made a great ad¬ 2.3 trillion kilowatt-hours—again
move forward to new records
of vance in our industry's public re¬ four times today's total.
Our electric companies had at
achievement in the future.
lations if we could find a method
of last year 43 billion
of bringing to the industry image the end
Paradoxical Source of Challenge
the
features
of
individual ap¬ dollars invested in electric plant
and
equipment, which is more
Paradoxically, it can be said proval that our own companies
problems.

own

our

Thursday, June 16, 1960

citizens

good

are

pected to

of rapid growth
developed a

In this process
we

others

and

housewives,

are doing, in expanding the use of
electricity. Through our sales ef¬
in their forts and
through a continual re¬ other words, there should be a
operating areas and are continu¬ duction in the cost of our
product, unified and harmonious image for
ally promoting the areas in which we have
developed the use of both the companies and the indus¬
they serve. This our communities
electricity in this country to the try. The factors involved in this
recognize. The officers and em¬
point where most people consider complex problem are under study
ployees of all of our1 companies it a
necessity of life. There is a now.
are active in community life and
tendency on the part of many
The determination with which
are, in many instances, the lead¬
people
to
take
electricity
for we tackle these problems in our
ing citizens in their various cities
granted, and to consider it almost own back yard will be of great
and towns. In short—we are cit¬
as
much their right 'as the
air significance to the future of the
izens wherever we serve, and jiave
which they breathe. This creates industry and every company in
created good corporate images in
for us the very serious problem it.
■
•

nies

opportu¬

President

of ability, imagi¬

men

are

to assure our future.

Institute for

extending

The leaders of our various com¬

panies

—

utility spokesman traces the phenomenal growth of industry

wherein he counters the arguments that

men,

by all of our companies would go

These numbers, however, are so
that
despite their

astronomical

significance
adequate

they

are

answers

really not
themselves

to that question of our neighbors,
"What does this all mean to me—
how

I benefit?"

Let

for

moment leave this stratosphere of

figures

and see what these pre¬
dictions mean to Mr. Joe Doaks.

POWER.

MARKETS,

LIABILITIES-

....

Unlimited

Continuously Growing

NONE!

future demands for power.

of its people, is the petf
capita :use of electricity. In 1959
the total
power
output of the

tions of what- the power business
will be like in 1970 and 1980. All

United; States

our

companies have contributed

these

studies, and because
business

our

probably better prepared to
dict

POWER & LIGHT COMPANY
Miami Florida

Helping Build Florida

One of the best indications of
nation's economic strength, and
the well-being and standard of
a

The results of intensive studies
by EEI Committees enable us to
give some very realistic predic¬

the nature of

FLORIDA

Reduces Figures to Per Capita

the

future

our

nities than anyone else.
to

of
are

pre¬

commu¬

We have

be, if electric power is to meet

the

future

needs,

and

living

amounted, to

kilowatt-hours
woman

and

for

child

every

the

4,52$
man.

nation.

1970 the per capita output is
expected to reach 7,555 kilowatthours, and in 1980 the per capita

forecast is

about

11,800 kilowatt-

hours for each person.
What do these figures mean in
terms of human energy?

Based on
equivalents, the
today is esti¬
substance, and in all probability mated to
equal the energy of more
will be borne out.
than 67 men working for every
Here are some of the highlights
single one of us—67 men working
of what we see
ahead; By 1970 for each man,;woman and. child
total power
producing capability in the country—at home, on the
hand when it is required.
(So we
feel that these predictions have

accepted

energy

electricity

use

Volume

Number

5960

tand in the manufacture of
things we buy. By 1970 each

job,
the
of

191

will have at his service the

The Commercial and Financial Chronicle

(2607)

ica, under its free economic sys¬
tem, has made possible the growth

the fact that

price of electricity has been going
down. Although the cost of living

electric

equivalent energy of more than
men, and ten years later, 176

produced

112

men.

Union.

four

the tric

been rising, the

About

industry that in 1959

the years, as

over

cost of living has

The best

and

think

which

Without

found

of the

ourselves

various

ways

serves

us.

check list this becomes

stock

electricity

difficult

of all is for each

way

take

process

our

own

perience. If the

have

company's

ex¬

average person is

asked

to guess how many appli¬
ances-using electricity that he has
in his home, his guess is usually
about

one-quarter
that

number

vertising stunt
our

quite

developed

customers

number

check

ad¬

our

lists

the

guess

the

have

provide

over

off from

total

appliances

have, and then turn
and

this subject in

first

actual

effective

with

they

the

use.

company.

which

in this

interesting to
future

changes that

prising
Of

are

even

sur¬

those that have

than

curred! in

people. For the
there will be

our

expect

the

oc¬

past.

all forms

word-of-mouth

communication,

country

still

the

most

effective. Evert with all the claims

people's attention being made
TV, radio,
newspapers
and magazines,
the most lasting

impression results when
like

you

and

respect

something.
Here is
nity for all of our

someone

tells

you

opportu¬

employees—

and certainly our wives—to enter
into this "Main Street" job of tell¬

ing

story to people.

our

What

Private

Electric

ideas

and practices from

free enterprise system.

government

ample

free economic system. As we-tell
this story we must make the fact
very

clear that the abundant

ply

free

sup¬

electricity

available

result

direct

economic

system
country. Although there

the

this

are areas

in this country

in which power is
distributed on some basis

being

other
than
free
enterprise, the
history of our industry from its
inception has been a history of
men.
investing their funds and
their talents in the growth of our
electric supply.
From

Edison

the

time

invented

lamp and set

that

the

Thomas

incandescent

the first central
station system on Pearl Street in
New York,

ply
free

numerous

power

based

enterprising tradition. A
of

imaginative

initiative

great

sup¬

Edison's

established—all in the

were

cession

through the
a

systems

work

growing

suc¬

with

men

has

developed
in this country

years

system

it is

now

purchased

stalment

plan, including, for ex¬
ample, two kinds of radios, fur
articles, accordions, and even

wooden

canoes.

Compares U.S.A. to U.S.S.R. in
Electric
We

read

creases

Usage

promises of future in¬

goods in Rus¬
sia, but the actual changes in that
direction
small.

consumer

to have been rather

seem

example of how the
Russian society is oriented, in 1958
only about 16% of the power pro¬
an

duced in the USSR went for resi¬
dential

with

and

rural

29.8%

matter

compared

use,

country. As a
the Russians are
nationwide campaign
our

fact,

conducting

keep the use of electric power
by people to a minimum. Letters
and

articles

suggesting new
electricity appear

save

larly in the Russian
these

articles

produces

seven

generation

United

States

electricity than the

nations

the

world

combined.

J*.,

■

i '

Russia presents a good ex;
of what can be accomplished under
a

centrally
Russia

later

controlled
the

not ask

maintains

may use

strict

contrary

country.

this

people to

of ways

tric

quite
in

the
do

people and

service.

try to sell elec¬

tricity in competition with other
forms

of energy.

panies
sales

have

All of

instituted
We

programs.

united
Live

economic

Freedom

education.

national

scale

the

Electrically program,
to establish a core program of na¬
tional advertising to increase the
sale

broad

electricity.

research

for

ing

replaced by

The

methods

economic

maintaining

industry and

whole

depends

the

electric

utility
part of

integral

that free enterprise system.
Job Is Too Big for

must do it.
I say to
that the job is so big that free
enterprising industry must con¬

you

tinue

half,,of

This

small

the
6%

^ebyaska

standard

population enjoys a
material living that

has been the desire

and dream

throughout the ages.

with

this,

Along

integral part of our
American way of life has been the
an

financed

bonds, and
the

revenue

in the Pacific North¬

revenue

bond technique

b§er)(^j5ed by, the public

districts.'

The

these

cases

prise

method

from

power

difference

only

free

our

the

lack

enter¬

development of standards of free¬
dom that have been the
men

The electric

industry has been an
important factor in the develop¬
of

our

and

American productive

very

factor in the way every
The growth

and

Priced

But

Expensive

Cheap

Government power is

American

taken

into

of elec¬

sive—but

account.

expen¬

undeniably in

are

generation and distribution
systems of the country.
future

the

A|merican

electric industry and the future of
all

the

routes

"Main
of

Streets"

and

rural

country

are

inex¬

this

tricably

united. Here again is a
where all electric compa¬

place
nies

should

Street"

remember

aspect

the

companies solve engineering
accounting and other prob¬
on the local
level, and as we
attempt to meet our share of de¬

and

lems

veloping A

program

education

for

should do

the

with

economic

people,

approach.
All

of the

facts

about

economic

results

electric

tion

regional and national

"Main

locally

which

suited

best

are

important
selves

that

identify
"Companies," and
we

important that
of

the

ownership

companies.
ple

panies

our

:are

vestors all

the

attention

the

decision.

real

utility

electric

com¬

thousands of small in¬
across

have taken

the country, we

the

long step to¬
maintaining our industry as
integral part of our free econ¬

ward
an

It is my hope that our com¬
will continue this educa¬

omy.

panies
tional

process,

Street"

using

approach

the

which

Let

review

important

some

areas

of the most

which

tion

this

educational program:

(1) We must tell
we are

people

doing and what

plan to

the

neigh¬

do.-

and

should

solve

our

use

aspects

problems

(3)

We should attempt to elim¬

inate the split

acquired

—

personality

and

try to

Continued

priced cheap, and

you

The truth of the effectiveness of

are

some

rare

interested—do

clients.

shown

clearly

Chronicle bound sets

not

needs telling the years you are missing.

quoted.

Education

system

delay.

Write

your

Prices will be gladly

Be prepared with complete sets to better

serve

The

Car

your

It pays!
EDWIN

BECK

Cafe of Chronicle, 25 Park Place, New York 7, N.

Designed with
Load Building in Mind

Bayard L. England, Board Chairman of Atlantic City Electric Company, is shown

Telephone REctor 2-9570

with

"f. '

one

It is

of the

new

electric automobiles purchased

by his

company.

predicted that the new electric car will be the greatest
the electric industry has seen in many years.

largely

Main Street.

— for
advertising,
in general, sales promotion
programs—and in other ways.

this

business

our

number

Economic

what

experience

our

companies should be giving atten¬

and,

Calls for

our

Outlines "Main Street" Campaign

For example, in united
research projects—for the inter¬
connection of systems, for longrange developments and planning
—for the'exchange of information

"Main
is

strongest asset.

ways.

and

story

the

same

other

our¬

bring peo¬

that

time, they can join with
companies on regional and

and

It is

utility

our

can

understand

owners

will

tell

AUTOMOBILE

local

our

Street," and they must be

told in "Main Street" terms.

or¬

ganizations at the same time. The
companies administer those things

eco¬

industry—and the facts about our
companies, must be told along

THE

production.
Our electric
companies operate on a local basis,
as they should, and yet they func¬

our

nomic system—the facts about

free

power

"Main Street"

enterprise system of
our country
allows for flexibility
of organization that produces the
most

"Main

business.

our

Our

when all factors of cost are

for those

resources

public domain, and let free
enterprise continue to develop the

expensive

power

better

power

(2)
Power

important

use

taxing

might

the

borhood
Government

'government

purposes which

ation.

the differ¬

its

use

any

equity capital, and the tax-free or
nearly tax-free status of the oper¬

aspiration
from the beginning of time.

taxpayer makes

The

Government

government

has

lives.

service.

of the world's

system,

new

nation

continuation of the American
free economic
system, and in
on

west

ment

electricity, and also find¬

providing electric

totalitarian

than

wealth.

finding

the

it, not government.
system if the people do not want
Where the scope of an activity
it and do not work to keep it.
is logically and properly in the
People will not work to keep public domain, the project is al¬
freedom if they do not understand most
invariably in some sort of
it. Without a knowledge of eco¬
financial
distress.
For example,
nomic facts people can be fooled we find that there
is continual fi¬
into thinking that a totalitarian nancial
stress in the areas of pub¬
system might be better than our lic roads,
schools, water supply
American free enterprise system. and
sanitation, and people are at¬
In a free country such
as
ours, tempting to find new sources of
the
people control our destiny. money for these purposes.
Our
people would
not
seek
a
In areas of our
country where
change in our system to a totali¬
so-called public power is domi¬
tarian or socialistic
system—but
nant, we find that there is an ur¬
small
change added to small
gency to borrow from our free
change soon develops certain fun¬
enterprise method of financing to
damental changes.
It is most un¬ meet
the needs of the people. TVA
fortunate that so many people, in
is
now
preparing to finance its
calling upon our government for
growth
through
revenue
bonds
changes, base their requests upon
because it had difficulty in getting
an
erroneous
idea
of what our
its money from the Congress.
If
present free enterprise system has
TVA really wants to become a
done for them. It is up to us, each
free enterprise electric system, it
one
of our companies, to have a
should finance its whole power
part in presenting proper facts to
business in the free market at the
the people.
going rates for money, and it
America, with only 6% of the
should pay taxes in the same way
world's population, has, through
that the electric companies do.
its
economic
system,
developed
We find the power system in
over
the years so
that it now

We conduct
development

and

aimed

programs
uses

can

com¬

Better

of
There are some people who say
industry, electric compa¬ that the job of supplying elec¬
nies throughout the country must
tricity to the country in the future
redouble their efforts in this area is too
big far industry, so that the

men

our

aggressive
have even

future of the electric

the

ence.

OPPORTUNITY...

limited time there

available.

enterprise cli¬
possible the
the American

made

growth

produces

save

people benefit from elec¬

con¬

and do. Amer¬

YOUR
For

One of

press.

American

electric

electricity
world's
try to multiply the variety

—we

the
Czar, and
Communists, the

trol of the lives of the

they

economy.

rapid

free

has

the

by, the growth
economy.
The

under

'government
what

regu¬

recent issue

ways

Pravda suggests that street lights
be turned off late at night to save

national levels to act in

the

the in¬

America its outstanding industrial

Today

pos¬

the

can

and distribution that has built for

might.

own

that

business

to insure the continu¬

that

situation

dramatic and exciting ex¬
of the effectiveness of a

America

stores

our

In certain

mate

are

be, and has been, lost through
neglect. A free economic system

Power

Has Done

during

sible to buy goods on credit. There
is now a list of 21 kinds of goods

This

; The story of what the electric
industry is doing, and is going to

ation

electricity.

do, is

person

creased by more than half
the same time.

there is to each

some

through

elec¬

much

aspects, life in Russia
seems to be changing.
Russia, in
a
good many ways, is borrowing

the page
list of

quite

times

person in Russia.

they

We find this game to be

times

the

tricity is available to each

appliances the number that is in
use.

three

Soviet has more than doubled in the
a per capita basis,
the past 25 years, the average price
difference is even more striking. of residential electricity has de¬

electricity

full

than

much

has contributed to, and

power

has been stimulated

new

LOAD BUILDER

have

translate
page

w-.

vmktvla-vw'jv*n'*£dU~*!M\ tuutji«^««|!•artwi-fl 1»m**

„m

y '<*

$ i' to4

&i*t

* m**i

wcsaw w «u

%'jt

»;

(,•»

i' (

>'■

■:: i;
J

Continued

page

industry image.

?Jt"

(4)

fi'

from

favorable company images into an

The Commercial and Financial Chronicle

(2608)

We should identify our com¬
as free
enterprising busi¬

panies

*''•

■

organizations.

ness

j;;.
:' II.

(5)
we

(6)

that

tradition—are

should

Wall

not

are

Street

con¬

his¬

tory is out of date.
(7)

(8)

about

companies^—we should
engaging actively in telling
story to people—our neigh¬
tell

this

story it is well

In
n

the

way

has

benefits

the

,f|;

rules

regulations that
purchase and sale of

the

ness

is admit¬

need for personal

aware¬

pitfalls that still

pre¬

The public is often unaware

of many

of the "booby traps" that
befall them despite the abun¬

them,"

"what's

American

our

for

way

life.

This free

long

maintain

of life will

way

free

our

are

con¬

able to

economic

sys¬

tem—limit the role of government
in the lives of our individual peo¬

maintain

and

—

the

electric

utility industry as part of Ameri¬
can free enterprise. Only in doing
the
necessary
educational work
will

be able to continue "lead¬

ing the world in electric
the

American

power—

Securities

"made

often

28th

address

Annual

Electric
June

sensible and

careful

King
of

the

Atlantic

1960.

;

before

the

Edison

City,

J.,

obligations to the investing public.
Nor

all

are

about

the

ultimate

their

some

promoters

concerned
of

outcome

ventures.

Despite
the record of many excellent un¬
derwriting organization who have

along for

gone

"misses"

with

years

and

financing

greater
pieces of

of excellent

their

behooves

the

mini¬

credit,

security

still

has

joined

mer

ff*

customers

"look

before

the

staff

Co., 134 South La Salle St.

WHEELING, W. Va.

—

Joseph W.

Co., 1210 Market

Street.

;

Lee
ST.

Higginson Branch

ginson Corporation has opened

Fullerton, Jr.

BOISE, Idaho

Schwabacher &

—

Co. has opened a branch office in
the First Security Bank Building
under

the

management of Joe A.

■';%

Uberuaga.
4

ties
Corporation
has
opened
a
branch office in the First National
Bank Building Annex under the

direction of Earnest F. Rentz.
?••;

BROOKLYN, N. Y.
name

1324

—

The

99th

firm

Planning Co.,
Street, has been

changed to First Mutual Planning
Corp.

name

-4

l •'

Investors

Investments

Corporation, 1535 Wilshire Boule¬
vard has been changed to Gordon

Ladet

!♦"

Opens Branch

lil:
r»

office

»if*

under

the

i»4'
■

TUSCON, Ariz. — Ladet & Com¬
pany, Inc. has opened a branch

Nettie Sue Hamilton.

* *

2030

Broadway
md^iagement of Mrs.

,!>i
u**

■■

East

<\*l

\> {
V

what

are

may

termed

"Bail

Outs," especially when the
management is old, tired, or filled
with
nepotism and contentment.

getting
to

come

market

variety

rid
of

word:

capacity

right

sure

and

management's
in

progressiveness

place

company you
are

money.

also companies in the

industry

but

they

to
market at the wrong time. A few
months
ago
Florida
land
deals
were eagerly
bought by the spec¬

ulating

public—they

come

not

are

at¬

tractive today. Several years ago
uranium
stocks
were
eagerly

too.

There

the

new

were

the

be¬

tute

they are also a
"getting out" when

certain
he

this

OUT.

New

And

out

several
later.

The

around.

TAKE

CARE
AND

TAKE

CARE

always

find

sell—if

don't

YOU.

attractive

you

You

everything
read, and hear.

you

the

Some

off

they

public

terms

of Mr. Scaffs
dictions follows:
summary

Watch

out

for

young

compa¬

company

large
very

low

the

For

see,

the

such

now

even

bargain
if

may

six

months

buy

not

be
from

electric

will

Elects Officers

the same. The
present breakdown is: 25.6% corn^
stock, 11.2% preferred stock,
long term debt, and 8.5%

mon

54.7%

following

sources:

Billions

$19.20
3.56

8.17

$30.93

Election.

Elected

elected

Co., John M.
Royce & Co. was re¬

Treasurer.

the

Board

Those

The

riod

Brothers

Company;

Jo¬

seph J. Gollatz of New York City;

Joseph

Grogan

Hirsch

Co.;
Joseph Klein of Joseph Klein &
Company; Frank Knell of New
York
of

Alden H.

Vose, Jr. of Kohlmeyer
Co.; G. Clarke Watson of New
York City and Albert M. Weis of
Irving Weis & Co.
&

With

the

Grogan,
the

Klein

others

retiring

exception

and

were

Board

Messrs.

Knell,

members

who

all
of

were

of
the

through

The
356.2

total

officials

the

years

million

Now what about the cost of the

electric

utility

Dec.

31,

cost

1959

constructing the power
plants, transmission lines, distri¬
bution systems and other operat¬
ing facilities which the companies
will have to build in the

if they

LOUIS, Mo.—Max H.

and

Midwest
many

Stock

years

Mr.

with A. G. Edwards

Exchanges.
Carter

was

& Sons.

Construction

Spending

the

Board

Directors

New-

Again,

find

prior thereto

H. F.

plant expansion,

during

next 11 years than the com¬
panies accumulated in their plant

accounts in the 77 years of the in¬

dustry's existence.

total

years

Trouville

with, the largest amount
capital

ever

raised by the

electric

utilities

period in the past

was

to restore needed

must

point out that this total

were

included,

the grand total would be well

over

$150 billion.

Avenue,

has

opened

offices

Street, to

engage

P.
45

With

Blyth Co.

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif—Harold

J. Caldwell has

joined the staff of
Blyth & Co., Inc., Russ Building.
For many years he was with First

Bache Opens Dept.
TORONTO, Ont., Canada—Bache
& Co., members of the New York
Stock

Exchange, the Toronto Stock
Exchange, and other leading se¬
curities exchanges, has announced
the

opening of a Mutual Funds
Department in its Toronto, Can¬
ada, office, 360 Bay Street, under
the management of R. H. Cardine.

With

Hill, Darlington

now

associated

Rogers

registered

Now L. D. Babcock Co.
name

members

D. Babcock

required

Co., 1118 Fourth Avenue.

The firm

billion

representative with Hill, Darling¬
ton &

ture?

$51.9

Meadowbrook.

VERNON, N. Y.—Joseph

West Grand

Where
will
the
money
come
from that will be required to pro¬
vide the power needs for the fu¬
The

Frederic

SEATTLE, Wash.—James

reserves.

companies conduct

—

Joseph Tanno Opens
MT.

billion, and the grand
21
years is
$143.3

11-year

Va.

Schneider is engaging in a securi¬
ties business from offices at 1405

the

To give some idea of the magni¬
of the figures that we are
new

•

1971-

billion.

investor-owned

and
with Alkow &

was

California Company.

figure for the 10
for

Presi¬

Inc.

most remark¬

the

The

Co.,

Schneider Opens

NORFOLK,

picture. The companies will
spend $51.9 billion, which is 20%
for

Co., Inc. and Toboco & Co.

able

formerly

was

Binder

securities business.

is for electric property only. If the
other businesses that some electric

Andre Meyer has been elected to

dent

Tanno
Describes Planned

Named Director

Binder

Mr,

meeting the forecasted power
requirements for the period?

Carter

Holton, Henderson & Co., 210
Street, members of
Exchange.

West Seventh

dealing

(Special to The Financial Chronicle)

ST.

with

to be successful

are

tude

With Fusz-Schmelzle

(Special to The Financial Chronicle)

LOS ANGELES, Calif.—Aaron M.
Binder
has
become
associated

plant account at
and the estimated

years

Holton, Henderson

the Pacific Coast Stock

kilowatts, which is
nearly three times the total capa¬
bility at the end of 1959!'

re¬

Ex¬

for

quite

1980 is $91.4
new

seems

inadequate.

elected.
The

1971

10-year pe¬
1980 is 227.4

markable achievement

are:

A.M. Binder With

figure for the

million kilowatts of capability!
To say that this will be a re¬

elected

Managers

Harry B. Anderson
of
Merrill
Lynch, Pierce, Fenner & Smith
Incorporated; Alfred Boedtker of
Volkart

kilowatts of capability than

1959.

Vice-

Brothers &

of Orvis

companies

years

they had in service at the end of

today mont
Mining
Corporation.
Mr.
when the issue is
oversubscribed,
because of a good job of over¬ Meyer is senior partner of Lazard
selling on the part of the pro¬ Freres & Company, New York in¬
moters. Many of these "free rides" vestment
banking firm.
you

would

approximately

11-year

the
install

"get in"

stock

structure

1970

means

price and where the company his¬
tory is meagre or not too good.
three-dollar

Long-term debt
period
1960 Preferred stock
through 1970, the number of kilo¬ Common stock
watts
of
capability the electric
companies
expect
to install is

and

nies, where the insiders have sold For
themselves

capital

pre¬

$19.4 billion. That occurred
during 1949-1959, which was a pe¬
riod
involving marked inflation
and when capacity was required

timing is off.

the

companies

from the
A

can

Schmelzle & Co., Inc., 522 Olive
Street, members of the New York

the

cover
only their surplus.
If no sbstantial variations occur
operations. Also, that the
requirements are in in the capital structure, the new
of 1959 dollars.
capital will have to be obtained

priced, but still will "miss the

may

that

companies

has become associated with Fusz-

boat" because the

planned

and

sound,

issues

that

the

projections be

his

making

new

basis on which
of new capi¬
determined, it was as¬

was

128.8 million kilowatts. This

has

mind.

electric

good ones,

represent

the

1959

inflation

greater.

sumed

that during the next

They are no longer in favor.
buy into new issues after

industry

tal

H.H. Scaff

N. Y. Cotton Exch.

Don't

cooled

based

are

future money

securities

believe

figures

Regarding

capacity,
the
Ebasco
official
pointed out that the figures for
the

repre¬

difference.

the probable sources

WILL

careful

are

much

capital spending

YOUR

THEY

re¬

Program."

Before

experience

Hence,, should
continue,
the
amount
money
required would

Ex¬

pansion

computed

are

past

capital figure

new

the

These

Sixties'

earnings and de¬

dollars.

"Financing the

best

CUSTOMERS

sents

panel

based

and the

discussion

BE¬

WARE.

16.63

___

30.93

preciation accruals

were

part of

days, weeks,

BUYER

accruals

retained

figures

Jersey.

marks

reveal
seller—you may

Billions
$ 4.34

__—_

$51.90

City,

Mr. Scaff's

always readily

months

he's

reason

find

much

WANTS

stock

doesn't

the

too

has

earnings

capital

The

re¬

cently

who

will be

;

Depreciation

Insti¬

Atlantic

buying opportunity, but
of

•

New

held

Sometimes these secondaries rep¬

method

.■

of Retained

Edison

Electric

in many instances

someone

the period 1960-1970
provided as follows:

for

Annual

Convention

reasons.

change took office June 9, for
went
one-year term.

issues

some

Serv¬

resent

Vice-President

Scaff,

28th >"

it.

City; William K. Love, Jr.
Anderson, Clayton & Co.; Fred
W. Perutz of Schwabacher & Co.;
Public stockholders are something A. C. Purkiss of Walston &
Co.,
new. And some
managements that Inc.; Malcolm J. Rogers of New
have become static don't take too York
City; J. Raymond Stuart of
well to their responsibility of be¬
E.
F. Hutton
&
Co.; Robert K.
coming a public corporation. In a Vincent of The Kendall Company;

ANGELES, Calif.—The firm

C. McCormick Inc.

;!
D'

aggressively forward look¬
Not infrequently,
however,

there

well

Gordon C. McCormick Inc.
LOS

Guide Posts

jor portion of the funds that are
generated through the public of¬
fering. In many cases, these com¬
panies are strong, well managed

well.

Mutual

East

Few

bought and

Now First Mutual

Are

There

■

cause

every

MOBILE, Ala.—Universal Securi¬

i' f

Secondaries

Annual

pubic funds, especially if the
management is receiving the ma¬

■itl

help

some

Williams of

Universal Sees. Office

of t..

meeting of the

position and would like to have

Watch out for the company that
has never come to market before

ing.

PETERSBURG, Fla.—Lee Hig-

branch office in the Hall Building
under the management of Walter
A.

Here

and

Schwabacher Branch

stocks

be prepared and given wide
circulation because: someone has

for

With Westheimer & Co.

of Westheimer &

quite often "write-ups"
may

President is J. Antonio Zalduondo

Westhei¬

depicted

was

ices, Inc., dur¬
ing the closing

Ebasco

policy to remember that

Tinney C. Figgatt of New York
City was elected President of the
he New York Cotton Exchange at the

advises."

Czinki has been added to the staff

it is good

of his

CHICAGO, 111. —Thomas Pavone

f.M

salesman

power

ahead

program

for other "booby traps"
outside of the underwriting field,

And

who is desirous of maintaining the

....

Joins Westheimer & Co.

;

too

are

too considerate of their

Convention

Institute,

Mr.

accounts in 77 years

plant

The tremendous magnitude of the
electric
industry's
construction

and when they are

soon

over—they are through!

stable market condi¬

tions. Not all underwriters

mum

way."

are

good-will and buying

\f
\ H

over

are

salesmanship is based
Many deals that are devel¬ upon performance. When a sales¬
in periods of highly active: man's record with his customers
speculation in the market would is
good, he doesn't have to know
otherwise be unmarketable in less
very
much more about security
active
times,
and
under
more
salesmanship. The word will get

percentage
*An

accumulated

that

20%

industry's existence.

oped

figure for plant expansion is shown to be

to Be

sell."

ple

and

stocks and bonds, there

that each Tom, Dick and Harry—
and
their
wives
and
families—

tinue

Tom, Dick and
dance of rules and regulations. The
"Main Street."
If we are to maintain this system security salesman with whom they
deal is the focal point upon which
that has brought our country to
they must rely for guidance.
world leadership,
it is essential

/.MS

business

the

understand

trust¬

too

and

can

the individual

Harry working

:|;

take

regulatory government
self-policing bodies
NASD. Despite all

agencies
such

vail.

life

of
innumerable

produced

will

are

investment

have

Our

that

American

will al¬

there

who

advantage legally and other¬

surround the

remember

for

those

ing, careless, or just plain dumb.
Every business has this problem.

eco¬

people react
strongly to "What's in it for me."

tedly

;■ >.f

another,

one

wise of others who

American

our

with
ways

people who deal

are

inform

than

former

in the

period of 1980

Experienced If Not Always 100% Right!
Where there

part in

bors.

companies' capital spending should reach $51.9 billion

Customer Expects You

all be
this

Your

our

activity

nomic system—and what it means
to them as individuals.

tric

1980. The

every

We should take

present

people
»

Leading utility management consultant presents data showing elec¬

BY JOHN DUTTON

1960-1970 decade and $91.4 billion total in the longer

' re¬

We should point to our hun¬
of thousands
of owners—

the

CORNER

busi¬

still

trolled—and that certain past

Spend
$52 Billion in This Decade

so.

dreds

;H'

Thursday, June 16, 1960

Electric Utilities to

SECURITY SALESMAN'S

tell people how
in the free en¬

enterprises—and

ness

main

should
founded

were

terprise

120

of Petronio &

Broadway,
of

New

the

York

American

Co.,
City,

Stock

Exchange, has been changed to L.
&

Co.

Volume

191

Number 5960

Halsey, Stuart

Bond Offering
Stuart

manager

Co.,

offered

issue

ally
Inc.

underwriting

which

dicate

syn¬

June

$50,000,000

Consoli¬

dated Edison's first and refunding
mortgage bonds, 4%% series R,
due June 1,

1990, at 100.799%, and
interest, to yield 4.70%.

accrued
The

group

award ; of

won

bonds at competitive sale
14

bid

Net

bonds

the

treasury

June

from the

will

the

become

funds

sale

part

the

com¬

and will be applied toward

pany

the retirement of short-term bank

estimated at $55,000,000 at

loans,

the date

of sale of the bonds.

The 1990 bonds will be redeem¬
able at optional

redemption prices

ranging

from

plus

interest.
June 1, 1985,

105.80 %

accrued

prior

through

bonds

refunding

any

par,

However,

will be redeemable from

proceeds

operation

incurred

less than

the interest rate carried

these

interest

bonds.

The

cost

1990

bonds

will also be redeemable at special

redemption
100.799%

prices

receding from

to par, plus accrued in¬

Consolidated
New

the

Edison

Company
is engaged in

York, Inc.

manufacture, generation,

chase

and

tricity
sale

sale

the

and

tricity

hattan,

the

Richmond

supplies

Boroughs

The

elec¬

manufacture

steam.

pur¬

and

gas

Bronx,

and

elec¬
Man¬

Brooklyn,

parts

Queens,

all in the City of New York, and
in Westchester County excepting
the northeastern portions of that
county; gas service in the, Bor¬
oughs
of
Manhattan
and
The

Bronx, in parts of Queens, and in
the more populous parts of West¬
chester County; and steam service
in a part of Manhattan. It con¬

trols,

through ownership of all
the
voting
stock,
Consolidated
Telegraph & Electrical Subway
Co.

which

owns

derground

conduits

cipally by the

used

un¬

prin¬

1959, the

operating revenues
$614,908,000 and net income

of
of

$68,764,000.

Di gest of Convention
Locations Available
To Executives
tenth

edition

annual

the

Diger.t

of Convention Locations,
published by Robert F. Warner,

Inc.,

hotel

sales

consultants

for

independently owned and oper¬
ated hotels, is now available to
executives in charge of- selecting
meeting sites for corporations and
associations.
It

contains

formation

concise

form

in¬

the

meeting facili¬
ties of 65 resort and city hotels in
the United States, Mexico, Canada
on

clear

the

least

says

of the

some

monopoly immunities of labor organiza¬
tions as a remedy for such situations as the steel impasse
last year or for
any number of inflationary ''settlements"
that have been made since that date—to
say nothing of
those that preceded it!
"*■ '
instrumental in

bringing a belated
rriust be regarded
as not in the
public interest. This sin in so doing was far
less grave than in
refusing or neglecting to suggest or
insist upon- a
change in the basic situation which made
the impasse possible; The
thought that compulsory gov¬
ernment arbitration is the
proper way to prevent such
situations as these from
arising or from doing wide harm is
a lame and
impotent conclusion. It would obviously invite
rather than prevent "settlements" in accord with
political
expediency. The really disheartening thing about all this
is that nowhere
among influential politicians or their
parties is there even a suggestion that the basic situation
out of whT'ch such
costly controversies rise and inflict
was

end to the steel strike

terms which

punishment

booklet

points

the

fact that it costs executives noth¬

say

mind

certain that

growth took place chiefly in those areas where
growth is really essential for competing with communism?

also to confuse better education with greater
spending as so many do. All in all, he seems to
be essentially a victim of much of the New Deal philoso¬
phy—in even greater degree than the present Adminis¬
seems

Federal

tration.

With Du Pasquier, Seskis
Eugene

Lehman

about equally culpable.

When the Governor ventures extended

and

less detailed proposals in the field of national
defense, he
steps in where most angels fear to tread. The way the
suggestion of an additional $3 billion rolls off his tongue
is

clearly reminiscent of

Pasquier,

Broadway,

services

Convention

Warner's

use

secure

reliable,

up-

to-date survey of possible meeting

sites,
both

fitting
in

areas

year in which

The
also

offices

are

and

the

are

that

services
Warner

when the resorts

open

often

are

time

interested.

Warner's

time

themselves

requirements,
at

they

use

saves

their

closed

readily
their

available

except

representatives,

through

Robert

Free copies of the booklet may be
obtained

from

Robert

Inc.,

East

45th

York 17, New York.

Warner,

Street,

New

York

under

firm

the

name

Stock

Valley Road.

Form Inv. Co.
CHARLOTTE, N. C.— Investors
Stock Brokerage Co. of North

(Special to The Financial Chronicle)

BEACH, Fla.—Lifter Se¬

Carolina has been formed with of¬

curities Inc. has been formed with

fices at 916 East Moorehead Street

engage

Officers

Lincoln

407

securities

Bennett

are

Road

business.
Lifter,

engage in a

Officers

are

President

President;
Daniel Lifter, VicePresident, and Stephen R. Ru.bin,
Secretary-Treasurer.

Alice

securities business.
M. Harris,

William

and

Treasurer,

Faulkenberry,

Vice

dent and Secretary.

of the Democratic

some

aspirants than that of his party
certainly be better informed
and better able to
judge our needs than the Albany execu¬
tive. He would run counter to what
appears to be the
trend of the times in armaments in
general. He is, of
course, wholly within his rights in holding such views and
expressing them—as are some of his presumable political
opponents. He may be right. Certainly we should not feel
competent to pass judgment on so technical and so com¬
plex a question on the basis of the limited knowledge in
our
possession. It is to be noted, however, that he takes an
extremely aggressive position on the matter — and that
pursuit of such a policy at this time would play into the
or

his President who should

hands of the Soviet

propagandists.

Eisenhower Administration

has

times

had

sensible things — within limits — to say about our
agricultural problems and policies. The fact is, though,
that acts speak louder than words in this as in other areas,
and our farm problem is still with us in unmitigated form,
and appears certain to remain with us whether the Vicesome

President

the

Governor

of the

New

York—

January.

that the Governor is trying to steal

of the thunder of

State

Democrat—enters the White House next

It would appear

some

of the Democrats
we

raise

our

when

growth rate to
all too common

He also falls into the error
apparently harboring a most vague and strange notion
of growth, how it is measured and what it means. It is
difficult to escape the impression that he has here simply
picked up a popular slogan and made it a part of his arma¬
ment. He must know that it makes a great deal of dif¬
ference what it is that we produce or are prepared to pro¬
duce. We should not be a whit more able to cope with
aggressive communism by reason of a greater output of
toothpaste, cold cream, lager beer, or even for that mat¬
or

Twelve Months Ended March 31
1960

a year.

ter of wheat.

$27,581,513

$24,473,777

20,207,913

Gas

17,630,421

1,029,475

Total

$43,082,853

Operating Income

41,274,836

36,741,893

$ 7,544,065

Operating Expenses and Taxes*....,..
Net

948,655

$48,818,991

Electric

$ 6,340,980

164,211

134,149

.......................

$ 7,708.276

$ 6,475,109

2,181,185

1,991,716

$ 5,527,031

$ 4,573,393

2,343,698

1,923,413

$ 3,183,393

$ 2,649,930

293,365

259,720

$ 2,890,028

$ 2,390,269

$1.94

$1.68

$1.89

$1.64

Earnings

Net

before

Income

Sharehold¬

Minority

Shareholders

In¬

Interest

Subsidiaries...... 1

come

Net

Interest in Income of Subsidiaries

ers

Minority

Central

for

Income

Electric

& Gas

Company
Balance

Divid«nds

Stock

Preferred

for

Common

& Gas

Electric

Earnings

Stock

Company

Common Share

per

Central

on—

Average number of shares outstanding
Number of shares outstanding at end
of

period

CENTRAL ELECTRIC & GAS COMPANY
SUMMARY OF CORPORATE EARNINGS
'•

♦

•

Operating Revenues:
1,029,475
$21,237,388

Electric

Total

Operating Expenses and Taxes1'".......
Net

Operating Income....
Other Income (including dividends from

$ 1,778,144
927,214
$ 2,705,358
573,518

293,365

Dividends

Common Share

period

Central

$1.42

$1.32

$1.28

on—

Average number of shares outstanding
Number of shares outstanding at end
Number of Shares

$ 1,872,120

$1.33

Stock

Balance for Common Stock.

$ 2,131,840
259,720

$ 2,117,108

Net Income

per

629,314
$ 2,410,473

Interest and Other Income Deductions..

Preferred

16,830,932

$ 2,006,313
1,033,474

Earnings

$18 699,976

19,231,075

$ 3,039,787

subsidiaries)
Net

$17,669,421
918,555

$20,207,913

Gas

Earnings

must

prepared to meet the worst that the
Communists can do to us, then a good many other things
such as steel, certain types of machinery, many of the nonwe

1959

Operating Revenues:

Interest and Other Income Deductions..

suggestion that there should be a "redefinition
of our farm program to make low-income farmers more
productive members of the economy" is not enlightening.
Again, what an opportunity the Governor missed in not
speaking the plain unvarnished truth about our farm pro¬
grams of the past quarter of a century or more, and
coming forward with a plain statement that if we are to
keep our economic health in full a radical change is in

or some

SUMMARY OF CONSOLIDATED EARNINGS

Net

The

and Subsidiaries

Other Income

What Does He Mean?

order!

CENTRAL ELECTRIC S GAS COMPANY

Telephone

of Common Stock of
Gas Company out¬

standing at—

metals, and a good many sorts of equipment must
adequate supply and our ability to produce them
quite adequate. But it is quite conceivable—indeed it has
in

already occurred
if

measured

—

that substantial growth, particularly

terms

Gross

National

Product,

could

Electric &

March 31,
March
♦Includes

1960

31, 1959

1,525,956

1,459,579

purchased of $11,936,866 and $10,307,615
respective periods (corporate and consolidated.)

cost

gas

and

Presi¬

before hirn. His position in this matter is much nearer that
of

Phoenix Securities from offices at

City,

Forms Lifter Securities

ferrous

Warner, Inc.

York

the New

ness

& Co., Inc.,

New

number of successful politicans

for

the season, and information is not

Seskis

with

Exchange.

ing

associated

now

Phoenix Sees. Opens
MONTCLAIR, N. J. — Charles E.
Cohn and Henry S. Giannetti, Sr.,
are engaging in a securities busi¬

Leonard

representatives

members

and

Brody

are

registered

offices

are

"growth"—

nothing of how he would measure it. If he has in
programs other than tax revision and the elimina¬

featherbedding—both of course much to be desired
—he does not make himself clear. And how would he make

dates, avowed

not,

Again

tion of

MIAMI

insists that it is essential that

also

And "Growth"

And how would the Governor stimulate

upon us all should be corrected. In this area
it appears to us that both
political parties and all candi¬
or

relatively minor enlargements of these fields
importance in the circumstances.

of vital

are

Vice-President

is that of the Vice-President. What an
opportunity he missed in not suggesting removal of at

some

and Bermuda.
The

than

his doubtful respects. It is also true that at some
points his position is far from clear—at least as un¬

company

total

The

Dealish

the President to whom he occasion¬

with

which

company.

For the year

had

system of

New

Continued from page 1

pays

vital

terest.

even

If Mr. Nixon

100.1599%.

proceeds

not

whom he criticizes

(2609)

occur

AS WE SEE IT

Heads Con. Ed.

Halsey,

The Commercial and Financial Chronicle

in the

Economic Growth and Population

Private Utilities Ready and

The

Able to Meet Future Needs
forecasts

Continued from page 1
to build to meet it.

proceed

They must plan far ahead so that
the public can be assured of al¬
ways having available an abun¬
dant supply of electric power. The
investor-owned
companies have
been

this
no

the

conse¬

have occurred in the areas

quence

they

that

shows

record

shortages

power

doing

successful

highly
for

serve, even under the stress
For a number years the

situation

its capacity

studied

and

establish the solid basis on

one

furnished
for

date

have

dently expect to do
ahead.

Each

met

full.
so

our

re¬

confi¬

in the years

United

Na¬

amount, 85 billion

kilowatt-hours

little

for their

produced by

than one-tenth, were

hours

the

...

Of this great

remaining

in -international

comparisons.^

industries

the

own

use.

The

billion kilowattproduced by utilities

710

were

industry is in two
parts — the investor-owned utili¬
ties on the one hand, and govern¬
utility

is well in¬
to
where
it is,
and
where it is going. Every utility ment bodies in the
power business
keeps up-to-date forecasts of the along with rural electric coopera¬
power needs of its area, and has tives on the other. Of the utility
formulated
plans
to
meet
its total, the investor-owned
com¬
future power requirements.
panies generated 544 billion kilo¬
To
formed

company

assemble

and

thinking

the

Edison

information

this

industry basis,

on an

Electric

Institute

has

watt-hours

(76.6%)
bodies

government

and

the

electric

and

been

reviewing past history, sur¬ cooperatives produced the remain¬
veying forecasts made by econo¬
ing 166 billion (23.4%).
mists of national
standing, and
The two sections of the utility
preparing estimates of its own as
to

what

industry

ahead

for

the

entire

for the investorutility companies
particular.
Definite
figures

owned

have

and

electric

been

1980, with
even

2000

for

prepared for 1970 and

general estimates

some

far

ahead

certain

the

phases

year

the

study.
Let

industry

and energy is bought and

power
sold

interrelated, in that

are

between

them.

Slightly dif¬

other

percentages
of

measures

venient

over-all

prevail

with

size;

con¬

figure

T98S^t5hripanies, and about one-quarter
us

look

some

these

rise

for government

bodies and

population and the
the level of living stand¬

co-ops.

causes

—

closely
of the

nation's

The

the

Census

economy.

has

Bureau

re¬

Edison Electric In¬
figures in be¬
tween—namely, 208 million peo¬
ple in 1970 and 245 million in
1980. For the year 2000, the In¬
stitute advances 340 million people

fertility; The
has

stitute

taken

likely figure for that

Chart

shows

to 1959.
to 1970

from

bottom

1980 is at 2.9%,

year.

national

gross

1929
projection

product

the anticipated

which is the

The
and
aver¬

losses

get

of its people. Hence
encouraging picture.

this

The economists foresee for

1980

value

lars

this

dollars

that the forecasts show a substan¬

today's figure. To reach
will

level

expanded

use

three

most

The

shown for the in¬
utilities
represent
the long-range plans of the com¬
panies to meet the needs of the
areas
they serve. You will note

constant

terms

require

stalled

of electricity—al¬
kilowatt-hours
per

in the Edison Electric Insti¬

Predicts Fabulous Electric Output

used
tute

probably
praisal as

realistic

ap¬

average

rate

the
1946

through 1958

postwar period.

Gross

national

product,

you

know, represents the market value
the goods and services pro¬

of all

duced

the

United

accurate

States.

For

comparative

pur¬

The
erate

this

analysis

trends

shows

the

historical
sales,

sales

between

industry will

install

make

components

this

One

1,500

that

is,

our

did

was

power

the

needed

most

important

determine

was

vestor-owned

this

vast

and

capability
1980

owned by
companies

will

made

GROWTH IN

ANNUAL PER CAPITA REQUIREMENTS

left after tax payments to govern¬
ment. Commercial kilowatt-hours
tie

FOR ELECTRICITY

with

personal consumption
expenditures as represented
by

BILLIONS OF
1959 DOLLARS

the

market

value of goods
and
purchased by individuals.

services

AT 5%

AT 3.57%

1,000

\ /
V

Industrial

closely

electric

the

measured

activity
country which is

by the Federal Reserve

Board index of industrial produc¬

tion.

$479.5,

follow!

industrial

throughout the

sales

ACTUAL

500

Thus,

casts

AT 2.90%

for

believe these fore¬

the

industry

rest

solid foundation.
The

lines

task
to

extending

electric

American

public is
complete. Future gains
sold to home and farm

virtually
in

the

power

will

largely come from an ex¬
panding population and from in¬
creased

1929

1940

1950 *

I960

1970

PROJECTED

use.

1980

-J

Importance of House Sales in 1980
The

residential
the United

average

electricity

for

is shown in Chart II.

CHART n

ties

have

use

IS59

States

Some

utili¬

already passed the

na¬

CHART IV

tion-wide average-use forecast for
1970. And many individual homes
are

AVERAGE ANNUAL RESIDENTIAL USE OF ELECTRICITY

now

using

than the

tional average forecast for

,fas,far,

na¬

;

-x

i'X

'*■*'/?/

v* 4,

1980—

13,000 kilowatt-hours.
ABOUT

13,000

home

watt-hours

20,000

over

use
a

all-electric

size,

average

will

year.

1980 there will still be

ket for the sale
in

the households

big

DOUBLED ABOUT

ABOUT

highly

mar¬

electric

EVERY 10 YEARS

7,500

Climate

power.

beneficial

uses

■

'■

.....

■

'■

MF.
-

\
,>

v.'-'

control

commonplace with electric
heating in winter and air-condi¬
tioning in summer. Even the fam¬
ily car may be driven by elec¬
tricity. And there will be many
other

MILLIONS OF KILOWATTS
•;fiy

through

will be

3,550

WM-

electric power
of our country.-

mechanized

■'

The household of tomorrow will
KWH

CAPABILITY

kilo¬

even

; '

:::%'-:M:,;;|:! :■;:;;?■ ■;:

:•

■

'..

;•

;::'

-K-V,.

cannot

foresee today.

Increased

1,547

and

1947

components, the

our

shop

of its

main

productivity

office has

one

use

of electricity.

nation is going to reach the

economic levels

1959

■

1970

I960

f-fORECAST-j

anticipated, for,it,
with the relatively limited work
force and working hours available
for
in

the

purpose,

marked increase

productivity of the

1959

1970

individual

other¬

anticipate that the kilowatts

much

produce

will

spent needlessly.

capability

plant
to

how

which

dollars

tax

wise

industry's study group

power

The

try.

gross

income

the

plain.

ready and able to meet in full the
future

it has produced dur¬

the

things

residential sales
disposable income—
people have

gov¬

capacity.

very

example,

related to

are

••

GROSS NATIONAL PRODUCT

Seen

Power

need for

national product.
For

co¬

needs of the coun¬
investor-owned
com¬
ing its entire history to date. And, panies are ready to enlarge their
in
the
decade
of the
'70s, the plans to supply all the necessary
estimates show
a
production of facilities, including the part of
over
three times the energy that the program indicated for public
it has turned out from the day of power on the chart, and will do
Edison's invention of the incan¬ so if
given the opportunity. This
descent lamp to the end of 1959.
would result in enormous savings

re¬

and

The investor-owned utilities stand

gen¬

much energy in the next

real

ernment
want

Public

for
is

classifications

customer

certain

There

used.

kilowatt-hour

existence

lationships
various

1959 is

case

electric

Need

gross

ten years as

it is put in terms of constant

poses

dollars—in

1980

of increase for
—the

what

represents

study,

dollar

capability to be in¬

government

operatives.

national product
compared to only 1%
kilowatt-hours today.

1959.

figures

tial amount of

greatly

rate of increase from 1929 to
Some people talk about a
rate of growth as high as 5%. The
3.57% increase, which is the one
age

new

trillion dol¬

services of nearly one
—double

vestor-owned

nation's goods and

our

bodies and coopera¬

built, of which 87% is the job of
the
investor-owned utilities.

productive capacity and the wellan

the

411 million of kilo¬
capability must be

1980,

By
watts

good indicator of a nation's total

im-

between
the
companies and

capability

required to meet the needs of
nation. Per capita use is a

being

end

the

existed

vestor-owned

to the amount of energy, that,

our

produce

required to

have shown the sit¬

figure that ties in government
will tives. ;

■

The chart shows the breakdown
of

distribution

and

it
.

1959.

capita requirements for elec¬

per

necessary

purposes,

uation

III shows

the anticipated

IV shows

the amount of energy

16,300 by 1970
22,000 by 1980.

over

Chart

at supply the needs of our people in
1970
and
1980.
For
comparison

of 1959 to

transmission

maximum and minimum,

and

how

and

energy

made up.

capability

rise from

which
are
tricity, compared with the actual
expansion figures for 1959. I have added

cently prepared new forecasts of
the probable
population of this
country. The Census figures are
based

would

Chart

kilowatt-hours

12,000

end

amount

power.

is scheduled

around

are

which

causes

and

CHART I

the | underlying
affect the need for

These

ards.

The end

of power per employed

use

the

about

three-quarters for investor-owned

The

development

ferent

electric

the growth in

for resale to ultimate consumers.

The

worker

elec¬

influenced

basis

and
require¬
ments of business and industry, by

the

electricity

•

total of 795

the

use,

its Electric Power Survey reports.
To

1959,

was
generated
States.
This total

tricity
United

provided the public
with factual information through

sponsibilities

rest.

kilowatt-hours

billion

tions

industry,

electric

public it serves. But first

the year

what

which these forecasts

war.

industry has

guide

the

for

ahead

and the
let

of .electric power

use

worker will be essential.

Thursday, June 16, 1960

result will be the use of more and

Rise

national

then

Financial Chronicle

The Commercial and

(2610)

win

ii»t-

the in¬
in 1970
up

Volume

191

Number 5S60

The Commercial and Financial Chronicle

(2611)

shown

Chart

background,
1959

for
It

are

evident

seems

reliance for the

Again

main

supply

will

modern

fuel-burning, large-scale
generating stations. Of the over
added

utilities

owned
will

investor-

1980,

fuel-

Power

Direct

versus

Generation

and

develop it in

like way. But

being done
business¬

a sound

it must be appreci¬

ated that the present state of the
nuclear power art is today about

the

where

was

for

mates

close
of

steam-electric
1980

nuclear

turbine

industry

kilowatts

based

power

esti¬

aggregate

million

is presently
in

The

1920.

what

known of the

technology. However,
if research and development over¬
comes
the
competitive gap be¬
nuclear

power

and

faster

fossil

fuel

than

pace

anticipated,

now

the

installed

nuclear power capability could be

substantially
In

larger.

another

area,

research

deal

great

being

carried out
in the direct generation of electric
energy from fuel sources,

thereby

eliminating
the
steam - turbine
generator as we know it.
the

hear

about direct

such

sources,
.

years

will

you

generating
'

as—

'1"

Here
what

that

central

short

nuclear

station

But

years

while

ago

energy

the

only fuel on the horizon to offer
competition
to
fossil fuels,
we
envision

more,

will

to
*

are

fuel

competition

life

for

that

assured

now

fuel

ample

American

power

civil

nuclear

20 years hence. And further¬

there
to

that

have real

may

sources

industry and

hundreds

years

come.

These

advances

research

1940,

the

end

of nuclear power as well as these
newer

praised

sources

from

must

ap¬

the

competitive
viewpoint and in a considered,
judicious and positive way.
Capital Requirements
Now, what will be the money
requirements
program

have

the
outlined?

carry

just

plant

nearly ,$168

out

taxes

customer.

fair

our

year

are

customers,

our

pay

but

the

and

nearly
book

1960.

four

times

value

also

the
It

immediately

raises

the

ques¬

tion of where the funds will

come

from

addi¬

tion

provide
the

facilities.

$143.3

You

vast

electric

continued

taxes

utilities

assuming

dollar,

econ¬

the

courlfry and
constant value of the

the

electric

companies

should be able to generate in the
about

$58

the

billion

total

—

needed

money—$85

around
in

the

billion—which

the

staggering

there

from the sale of

come

investing public.
to be

sum

seems

with

fair

proper

sure.

reason

dividend

Should

continue, however,
of

amount

needed,
would

new

and
the

inflation

much larger

would be

money

smaller

proportion

generated by

the busi¬

ness.

The

study

indicates

investor-owned

utilities

that
are

the
pre¬

the

people

our

country.

They

are prepared to raise their
capital in the free money

market, without recourse to the
public treasury.
They have adequate plans to
assure
ample electric power in
future

enter¬

their

equity

share.

But

business un¬
dertakings have failed to do so.
There is another important sub¬

ject that I want to discuss.

late,

good

Some

bit

about

the

been

hearing

pooling.
who have

power

people

visited Russia

have

pool.

Their

been

ostensi¬

ure

the

field.

benefits

discoveries

research

the

aggregate

kilowatts.
date

was

all sections of the
country are enjoying the benefits
resulting therefrom. This develop¬
ment is still going on.
Nearly all of the present oper¬
ating utilities are the result of
integrating, over a 60-year period,
small

their

the

taxes

pool

the

payments made
its resale dis¬

total

twelve

over

and

tributors in lieu of taxes.

Today
this

there

and

are

country.

other
throughout
range
from

many

pools

power

They

formal

organizations to informal
exchanges
of
economy
power,

isolated

Valley
of the

tions. Their histories resemble the*
one I
have just outlined to you.

million

They, too, continue to expand. For

Au¬

example,

same

have

In the year 1958, the twelve1
participants then in our power
•pool set aside a total of over 183

Of
113

dollars

Federal

dollars

income

million

dollars

Utah
and

Power

Arizona

represented

There

T.V.A. and its resale distributors

Federal

income

that I

taxes.

Light Company
Service

addition

resulted

has

the
in

and

are

other examples

many

have

one

six million dollars in lieu of state

possible rates. They are so much a
part of our daily operations in

1 Baltimore Gas & Electric
Co.; Penn¬
sylvania Electric Co.; Metropolitan Edi¬
son
Co.; New Jersey Power & Light Co.;
New Jersey Central Power & Light Co.;
Electric
Hershey
Co.;
Public
Service
Electric & Gas Co!; Philadelphia Electric
Co.; Delaware Power & Light Co.; At¬
lantic
City
Electric
Co.
and
Luzerne
County Gas & Electric Corp.

this
for

that

country

take

have

pooled

Continued

page

sys¬

pooling

electric

interconnected

their

generating

and

facilities

to obtain further economies.

May I refer to my own com¬
pany's experience — Pennsylvania
Power &
Light Company—as a
good example of what has taken
place many times over the years
in

this

field.

Step by step over 900 separate
parts were consolidated to form
the Pennsylvania Power & Light
Company as it now exists.
More than 36 years ago, in 1924,
representatives of Public Service
Electric & Gas, Philadelphia Elec¬
tric
and Pennsylvania Power &

and

utility

•

result

thousand

built.

(oils

tunity
often
10

pioneering, a 220
loop was
time, this was the
voltage in use in this

step by step, the present
power pool, consisting of
companies with a total gener¬

capability

kilowatts,

was

of 13.5 million
developed.
The

•

;

13 '

»nd

cHib

groriP9
,

,\itieB.

meeting

'Tnew

«rtn Lwtnta^ J$\Yie

-■>

lS°" do"S°«i
i«w'J
struct*}
ltWer

the

; vest

bvuH «

v/itnesfe^

its

start "

tana.

__lhe

anre-

Ration

urac-

®uRB

»r„
/

^Deration

oU,

^°[ y°bv5^

Orleans

country.
Then

there
<

Be(»

backbone

the

regional

ating

this

volt

OrtwM!■*

■

Light met to investigate the feasi¬
bility and desirability of a high
voltage transmission interconnec¬
tion among the companies. As a

them

granted.

Of particular interest as .regards
the mileage of the transmission

companies of today, various utili¬
ties

main

objective, which is to furnish good
service to the public at the lowest

integration
the

are

could cite.

All of these ties

payment of nearly

Public

preparing to interconnect
their
electric systems to take advantage
of load diversity.

about

and

other taxes.

announced a plan ,to
major tie between upstate
York and the metropolitan

area.

represented

taxes,

investor-

New

nearly

sum

major

just

build

taxes.

this tremendous
million

for

the

owned utilities in New York State

resources.

that

partici¬

times

by the T.V.A.

million kilowatts.

11.7

paid

merging them

power

capability

was

Tennessee

T.V.A. made

it until nearly

1959

thority's capability

future along this line.

tems,

words,

amounted

similar

at the end of

bly impressed by what the Soviet
planners have in mind for the

hundreds

other

Parenthetically, I would like to power
purchase
agreements
or
you some interesting figures
simple emergency service connec¬

Not New to Us

have

pay¬

pants

which

Power

resale

over nine million

twelve

the

Taxes with TV A

million

highest

years.

They will continue their pioneer¬
ing so that the people of this
country will receive in full meas¬
new

pooling

operations

Compares Pooled

•

pared to meet fully their responsi¬
bilities

our

improve

and

slightly

its

similar

success

ratios

treatment

investor.

But

why

maintenance

capitalization

equity

business

originated the pooling idea many
years
ago,
and have developed

sound

stop
plan to

The utilities of the United States

fair regulatory treatment of

you

about the companies in this power

that

agree

With
omy,

bear

and

made

give

formidable

will

billion

figure.

the

this

industry's

assure

are.

We, and
willing

are

matter

Power Pooling Is

this is a very striking
of the growth ahead of
investor-owned
companies.

now

taxes

dollars.

have proved to be very beneficial
to
the
customers
of
all
the

in¬

the

government

should

—

was

do' not

cost

think all business, includ¬

prises,

account

billion

intend

VI)

element

the

serve

plant

Now,
picture

new

still

the

estimated

own

methods of power generation
emphasize that the development

(Chart

these

course

I think

account

get out this cannot be done with

can

concerned.

few

foresaw

now

sound

twenty-one

shown!

cluded

$43

16 times what the book value

insofar
a

itself

1980,

should

and

power

only

period

the

thus far, government

can

that

ment of

Company

joined the pool. I

local

distributors

participants.

epd

plant

Potorhac Electric Power

where

and

May 1st of this year,

continue

shows

ing

laboratory in the next ten

years

recently

facilities

which

billion; for
1960 the estimate is $45.8
billion;
and $88 billion by 1970. By the

will have to

possible

of these methods

of the

stood

this

significant

strengthening and expanding
process
is going
on
today. As

dollars

con¬

the vast

figures

some

electric

bill, based on pres¬
ent tax rates, during the years to
come—a total of nearly 102 billion

total for

will be. At the end of 1959,
account

A
any

are

the

securities to

seems,

able

size of the tax

billion.
adds

find

may

illustration

the 21-year period of $143 billion,
which is 3% times the total elec¬
tric
plant account of the com¬

new

Fusion

hardly

You

Fuel-ceU.__.
It

the

period 1960-1980. The rest will be

Magneto-hydrodynamics

$91

And this

ness

$o2

value.

ten-year period,
1971
1980, the total will be

40%

Solar

Thermionic...

nearly

will

price line which,
on
the
whole, they have been
more
than successful in doing as
compared to general price levels.

utility

dollars

they

tinue to hold the

property

day-to-day operation of the busi¬

Thermo-electric
;

the

total

hand,

progress

nuclear

tween

level

through
over

will

constant

—

present
In

electric

And unless inflation gets out of

1960

construction

investor-owned

companies
billion

period

panies at the end of 1959!

; Nuclear power is on everybody's
mind. A monumental amount of
work has been

11-year
1970,
the

the

85%

conventional

burning type;
Nuclear

capability

the

through

expenditures

future

356 million kilowatts of

for

figures

that the

power

foreseeable

the

comparable
shown.

Llal

3/' i

"1
) I'

T
40

(2612)

The Commercial and Financial Chronicle

Thursday, June 16, 1960

I
\f

•

Private Utilities Ready and
Able to Meet Future Needs

Continued

t
),■
ft:*

■

•

li,'
i.

lines

22,000
with

.«■

the

and

great

volts and

expansion that
since 1950.

place

the

together

over,

lines of 60,000
the

taken

States

generating

capacity
grows to take care of the expand¬
ing load, the interconnection and
pooling process is accelerating all
the

Over

United

States.

Ensuing Savings

vi
U

pooled systems of the future.
look

of the

some

have

the

addtional savings

operation.

will

range

regional

''r

|;
I

ill"

and

special benefits that can be rea¬
lized in individual instances. Here
is my

Savings in production expenses,
differentials

exist in fuel
operating ex¬
fuel. The gen¬

cost, efficiency and
other

penses

than

eral

practice is to place the

cost

stations

schedule
of

base

the

their

others

low-

load, and to
in

the

order

voltages

losses. Line

selected

relation

the

have

amount

Reduction

the

amount

reserve

generating capacity. This
advantage is especially important
because

being

the

large-sized

installed.

The growth in

demands
tance

this

the

impor¬

factor.

bilities

units

leeway

Ability

to
install
larger
and
efficient generating units.

This

smaller

special

utilities

advantage

that

w
m

related
to

4
'

i',

catastrophies and accidents
jor equipment.

the event

pool

bombing

will

ma¬

sabo¬

aid

service. It will also
give greater flexibility to
locating
defense projects.

various

low-load

not

should be

only to sizes, but also
and temperatures.

this

out

carry

idea, the

in¬

existence

should
not
expect
the
manufacturers alone to do the job.
The companies must take the lead
in this

great

care

not

block"

of the

use

factor
and

that

develop

hydros
be

built

into

future

technological

great

use

will

maximum

size

suitable

without

Ji
!•

sites, in respect to load
centers, fuel, water and the many
other

factors

plant

involved

support necessary to
the program that I have

outlined

But

must tell

story. Our

our

customers do not know these

own

and

must

responsibility to see
they are informed.

power

willing
of

and

line

volts

able

million

there is

even

Coordinating

they

make

kilowatts,

technical

voltages

that

and

that

only

million

one

Public

Manufac¬

facturers
two

got

the

half

rate

the

manu¬

utilities, if
and
be

the

scheduled

installed

that the

facilities

uniform
As

units

manner

turing

the

together,

new

such

and

both

would

manufac¬

have

that

9<w

hoin

omroromont

inhoi
?hiv^ in

Ana

this century we can look
rapidly increasing economic
momentum. Population will confor

sold

the

relv

Overcoming

n„

Public's

Lack

Here is the key fact: More than

two-thirds

the

29%

government

who

help

took this position because

said

needed

they feel

the job to be done is "too
big" or
"tnn

pvnpncivp"

fnr

handle

nnr

ZusHy's

our

plans,

our

against
easier

any

our

really hurtmuch

ideological

ye®

Was

is much

correct.

let

tell

the

story

capability
power

continue

old

facts

record!

past

industry,

our

industry's
us

what

than

of wide-

the

And it is hurting

nnm-

aeain

capabilities and

our

resources

Here

knowledae

Tout

this
and

being sold

are

selling stockChair-

Eskow,

Board

™

Directors

from

exDansion

expansion

■

thp

our

meet

needs. And

bear

story

mind

may

familiar to

about

the

must

information

work

the

evidence

fully

this

area

that

let

that

come

us,

this is

electric

keep

have
us

in-

our

and
at

programs
hand much

demonstrates

before

J.,

address

Electric

June

for

imnrovement
improvement

ana

p.™grafm'

*10n of working c'aPltal expended

The
jn

Coip.,

restore

fai?ds

done

that
the

job

do.

by Mr. Oakes before

institute,

Atlantic

City,

1960.

vfif'

tAp

impress system, inc., in-

ries on the business of common
carriage by motor vehicle, freight
forwardirfg and consolidation of
property for shipment. It also
leases trucks, trailers, tractors and
other equipment to its subsidiaries

others

and

The

haul

company.s

general

Unit is $120

plus accrued interest.

the

TTr,jtPri

capital

Saving's

United

stock

Loan

and

savings

ana

AiS-

nuan

nf*

s0Ciatl0n ot 0f all of the
Inglewood* Calif. and
owner

capital

stock of Rio Hondo Savings and
I

Association,

oan

South

Gate,
also operates

company

fire,

for

agency
related

insurance
casuaity
and

insurance
simjiar

coverage

for protection

Agency,

insurance

com-

conducts
business.

recently

The

become

T^V
the financing

The proceeds of
wl'h the, ®*c®Ptlon °f aPPre?1,wt!
distnbuted to tie holders of the
company's capital stock outstandP«Pr to the issue and sale of
the units. The balance of the proceeds will be added to the c0^1"
,,

Pa^yfunds and
general corpoiate

!'ates, fr°m few Hampshire to

be, available for
purposes.

The debentures are convertible

after Sept. 1,
a 1960 at
'per slWTer.The isfreight forwarding system from sue will have the benefit of a
Massachusetts to Texas, and con- sinking fund commencing May 1,

anfd

so.idate

FI^lda:

shipments

into

single

shipment for delivery by a designated carrier or freight forwarder,
PrinciPal offices of the company
ara located in
York City.
For the year 1959, the company
^^d i^s subsidiaries had consoli^t^icd operating revenues of $15,276'239 and net income of $848,269.
Upon completion of the current
financing,
outstanding
consolidated capitalization of the company. and
its subsidiaries will

^onsmt of $2 601 745 of loni-term
,1 673^600 shares of class A
s^ocK and
shares o±
.

class a st0CK-

Branch

Corp.

nounced

America

was

branch

first

Western

New

urill

will

tion

York

Offices
n-P-Pinfte

OCCUpy
OCCUPy

BuffMo

s new Tishman
Robert Kaffey will be

...

Building.
Manager.

annually.

addi-

the

For

bentures

sinking
will

par

pius

Oct.

20,

fund

1960

interest.

they
the

the

de—

redeemable

accrued

deemable

After

also

are

re-

the

option

in whole or part at 105%
through April 30, 1961 and at decompany

creasing prices thereafter,
accrued interest,
upon

completion
company

plus

of the

will

offer-

have

out-

standin« of
f.250,ooo principal
amount
purchase money ob]igations due

1969; the $6,000,000
debentures; and 1,290,056 shares
0f capital stock.
■»

«-

•

-i

-pv

-i

MUlllClD9i ijOHCl
(Hl]h
rpjie

ects

vlvi\/

jM>

Municipal Bond Club of New

York

has

elected

the

following

officers for the ensuing year:

new

wm 10 ii n® if mmmmmm utiimi!

tip to

retire

may

tional $600,000 principal amount

an-

Walter

Benedick,
President of the mutual fund
sales
organization.
The
com_
Kronola

1966 under which the company is
required to retire $600,000 debentures annually and at its op-

ing, the

BUFFALO, N. Y. — The f o r m a 1
opening
of
a
Buffalo,
N.
Y.,
branch office of Investors Plan™ng

°Perat|

President:

is the majority

1 he corporation is tne majority
owner

Chase

mmmomm ummis

only

each unit consisting of
principal amount of debentures and two (2) shares of capital stock. The offering price per
units,

$100

Maryland and between New York into capital stock

tkmnmw

stock.

t~ of; Tenders in real estate trans¬
irf" actions> and its subsidiary, Tested

corporated in 1938 under the laws

CHART VI

lliili

capital

is being made

normally required
,•

deben-

120,000 shares

company's

offering

°an

and

subordinated

1975 and

Calif. The

pany's
♦From

the

POtTinqnv

and

corporation

trom tne salJ 01

will

convertible

company.
nro„ppd„

in-

formation

until

being

company

wfdJn^Hestnnw^dlriteriHn-nis Investors Planning
widespread
knowledge
and
dustry.

associates

and

public offering,
units,
of
$6,000,000
United
Financial Corp. of California 5%
tures due

modities by motor truck over
regular routes
in
northeastern

Knowledge

nanies

the

Benjamin

subsidiaries

ro"

Lo.rrtf

not

" enmnaniif
w^thov LfrornToot hofo la
noo^aarv
government help is
y*

production.
push ahead into the last

are

Brothers

June 10 made

customers

our

shows

nnwd SltlS
Inf.n wf Si

though

turing Production Rate
It is my belief that it would be

In-

th.

tomorrow's

Uniform

number

Lehman
0n

°Lroanv which through thre! comPanY has
LonLCn°Trovirte 'nil "y arned subparts, car- lic,f"Sed aS a"

iio.ro

total

and

June 10.

that

for the

customers,

52%

wardmto

Companies

company

150,000 shares of class A stock

Program, based on a
properly selected sample of elec-

barrier

higher.

-j.

150,000

holder,

formation

trie

System,
price of

the

A recent opinion
survey

Electric

Express

stock

150,000 shares

man

Yale

the

of th
!
N t

Inc.

underwriting

for ^he account of

merit
merit

public's

carry out

ing

Manufacturers tell
are

location.

that
mat

advan¬

comment
confident

per

an(j

Corp. Offering

Co.,

300,000

iSSUed

offered

class

offered,

the public

lack

5,.

recourse

treasury.

$5>5o

feet, and to do

own

smead

locate

jnc

augmented

have oroof that the

investor- owned

greatly

Kletz

which

group

are.jwell- prepared to.take
the

manager

indus-

our

themselves

CHART V
>

The

their

Edison

is needed.

for each situation.
Greater opportunities will present

tageous

Michael

Heads United Fin.

iJjXPrGSS (jlTOUP
™
~

needs of the future, stand-

power

that

power,
of
the

units

what

resources

care

"road¬

the demand grows for addi¬

tional

our

standardization

progress.

utilities

matter, but they must take

unit

maintaining

now

large-sized

process

advantageous to

greatly

Making possible full

especially fa¬
to

The idea could well be extended
other items of equipment.

that

Contribution to national
defense.

tage,

respect

pressures

Improved emergency service. A
pool gives added insurance to the
maintenance
of
service
during

standardization

cannot

themselves justify
installing gen¬
erating units of optimum size.

seem

seen

9/16

-j-.

today,
long-range planning in the

facts

past.

operating under high pres¬
and
temperatures.
The

made

planned
maintenance. The ability to draw
on spare
capacity in the pool gives
greater flexibility in the increas¬
ingly difficult task of scheduling

mere

the

by the industry. The possi¬

vorable

peak

summer

maintenance.

used

does

emphasizes

Greater

Taking advantage of load diver¬
sity, including differences in time
zones.

dustry

•

ii.

done

where

Savings in capital expenditures
be
obtained through stand¬

losses.

units

been

situations

can

involved, the distances to
load centers, and the value of the

today

has

ardization of turbines and genera¬
tors over the entire range of sizes

power

exist

sures

efficiency.

Lower transmission

direct

this

list:

where

today

have

Lehman Brothers
—

JnLGRQS

com-

realize

a?.?F,ai

pools

power

TJ__ J

try is taking this look ahead. What
we
have projected is a
realistic

by long
of
transmission
interconnections.
The

aided

successful

other

fyasis, and

planning

lines

measure

most

are

growth

1\4"tpVjqo1 TTlpfy
IVllUIla/t/l XYICLZj

fully what the
future holds depends in great

the

every situation. I have listed nine

there

and im¬

conditions.

than

is toward this end that

ca¬

in-

past.

But

The

local
will

process

major

benefits;

the

This

years

use

will be governed as to extent and

these

and

grow

ing

are

and

greater progress in the

even

the

us.

loads

Business

grow.

Wise

pacity increases, further expansion
of power pooling offers possibili¬

type

possible

future

opportunities that

before

fits of interconnection and
pooling
remain much
the same. Not all
are

the

proved

Although conditions are con¬
stantly changing, the basic bene¬

benefits

investor-owned utilities, these

ties

future. Pumped storage
projects, where conditions are fa¬
vorable, offer advantages to the
As

dustrv Dromise substantial exnandustry promise substantial expan
sion.
Research
and
scientific
development offer assurance of

the

page

United

volts

the

over

has

from

tinue

John

Manhattan

Bank;

Milhau,
Vice-

President: Hugh C. Wallace, Fran¬
cis I. du Pont & Co.; Secretary:
William

F. Dore, Kuhn, Loeb &
Co.; Treasurer: Alan N. Weeden,

$101,T

Weeden & Co.

",'l" i

["BILLIONS

:HS;

■

''/■A,

'>./

(Special to The Financial Chronicle)
'

•

ST.

LOUIS, Mo.—Arnold L. Heller

has been added to the staff of Ed¬

$65.5

!»
*

Edward Jones Adds

Hill

'DOLARSll

i *vv

.r#

ward

Fourth

Jones

Street,

Co., 300

members

North
of

the

New York and Midwest Stock Ex¬

changes.
with

$56.2
pS, "A'-iA y
K'

MmAMM
mmrnWi

!K
m'I

formerly
Beane

LEVITTOWN, N. Y.—Patriot In¬
vestors
Corporation
has
been
formed with offices at 3924 Miller

Place
'

♦

tm Wtwutr fHQV S0j*as

or-tr.fi

p
V'iur*

I ■■■''''

'/'•

1960-1970

1971-i960

J960-1960i

business.

engage

Officers

are

securities
Louis

DiMitri, president; Frank D. Sulli¬

•
-

van,

vice president and secretary;

and Herman

Udasin, treasurer.

Js;
3

Form Patriot Investors

>>»

was

Williston

City.

.ii;

Mr. Heller
R.

New York

,H'

-Vfe'v

'4"

WTf

Volume

191

>: Number

5960

The Commercial and Financial Chronicle

(2613)

$15.73

April 30, compared with

$16.53

Oct. 31.

Massachusetts

Dividends declared from, invest¬

ROBERT

ment

RICH

FUND

investing

come

and in

selected

common

for

denlzens °.f. Wall chant- mg that utilities stocks,major apto marching and Street peal as "defense" have
but many

income

wprp pi
were given

and

ing

profit possibilities.

the

students

the downtown
canyons

overseas,

these many

months

might have rung to such
phrases
as:
"Electronics,
yes!
Cyclicals, No." And: "Railroads,

Equity

Down

t-iuia investing pri¬
marily in

common

selected for
term

home!"

bread

dissidents

stocks

tened,

Wellington Fund
Wellington Equity Fund

the

ine

world

first

came

trumpeted

largest brokerage

♦

louder

and

the

concern

whlch> incidentally, has never had
any
difficulty in restraining its
enthusiasm
a

special

for

mutual

issue

culation

^.Tpewhii»hft
While it
MUTUAL FUND

funds.

its

mass-cir-

the

magazine,

riers.

"the

gains prospects. The funds were
buyers of utilities, on
balance,
early this year. Whether this was
any more than a defensive meas-

broker

ha™®™!!
have made

may

few

converts, there is no denying
the one-day sensation, reminiscent
of its plea several years ago for
just one railroad: the Pennsyl-

INFORMATION

vania.

this

time

munity

it may be that

course,

the

will

investment

harken

com-

unto

the

rtrUH

But,

whether it's

utilities

the

it's

roads,

the

plodding

sidetracked

difficult

rail-

Meanwhile,
the

Incorporated

tute

Investors

insurance

EST.1925

had

one

that

A mutual fund investing
list of securities

in a

selected for

possible long-term growth

capital and income.

And

they

have the understandable

A mutual fund investing in
0 list of securities

selected fof

current income.

A prospectus on each fund is available
from your

top official
great life

nation's

companies
electric

was

saying

the

power

the

50s.

railroads,

friends

and

Utilities,

have

mflu-

derive support

from the sophisticated. The result
is that utility stocks, on average,

have

been

steadily for the
last 15 years. If they were to win
friends among the little people,
as they have attained influence in
the big institutions, there might
even be a shortage of stocks.
As

investment dealer.

the

it has been

ential

Income Fund

Insti-

for

rising

railroads,

don't

200 Berkeley Street, Boston, Mass,

even

that

about

just

were

new

day for the railroads and that

this

generation will settle for the

unfrenzied growth of

friendless.

the open-end and closed-end

such

balance, were sellers of
top-quality carriers as
on

Southern

Pacific

Southern

and

13 of the 62 favorites

in this field. There is

deny-

income,

"with" a* dividend
income

business

State

SCifit
r(Zotn/taniff Trustee

Street, Boston 9, Mass.

Incorporated 1818

capital gains.
*

Iinert faf

Another purchase of Atlantic ReCorporation

stock

the

Axe Investment Funds of New
York was announced. The pur¬
chase of 12,000 shares for $600,000
is the second purchase of Atlantic

Funds

shown
can

the way.

made

The Plain Janes

mighty

appear

att,ractive t0 °ther men- ;t
onjy

they've

alter

seems>

attrac ted

suitors.

numerous

Research stock by the Axe Funds

recent

months.

that

had purchased

Axe-Houghton

Fund

Second Quarter Dividends
Record Date June 21, I960

Inc.,

Axe-Houghton Fund B, Inc., AxeITnn„h)„„
Houghton

Fllnr|

Stock

Tnr,
Inc.

Fund,

chase

f he f UndS ReDOIX

additional

Haydock

Fund,

Inc.

reports

for

earlier.
At latest
stocks constituted

year

6iy2% of the total portfolio, compared with 66.7% a year earlier.
'

Grouped

- *

$3.42, down from $3.91

year

and

investment

67Vi cents

the

Payable July 1, I960

part,"

$2.70 PREFERRED STOCK

Broadway, New York 6, N. Y,

was

The Dominick Fund, Inc.
A diversified closed-end
Investment

Company

assets

Chemistry

glares, inc.

Re¬

Axe

continued interest in tne

dustry of which it is

STOCK

Dividend No. 145
*

onjcs

Payable July 1, 1960

progress of Atlantic Research and
in the solid-propellant rocket in-

earlier,

Net

*unds

the

Income

Shares, Ltd. reports that at March 31, end of the
fiscal year, net assets per share
totaled

cents

the COMMON

anrl

Atlantic

"reflects

Company

the

25,000

Diversified Closed-End
Investment

Early in Janu-

announced

was

oorji

Axe Science and Electronics. Pur¬
Tl

Nucle-

Electronic

record high

were

On June

14, 1960

dividend

12^

the capital stock of the

per

declared

was

Cor¬

$8,477,000 on May 31, said John
M.
Templeton, President of the

poration, payable July 15, i960

Tri-Science

30,1960.

was

from

vajue

the

Growth
than

earlier>
share was

per

aimost

figure

after

52%

six

taking

This

Fund.

year

May 31>

disclosed
ment

stockholders of record

increase

Net

$13.58

higher

JOSEPH

asset

THE

10-year investrecord

Lazard Fund, Inc.
44 Wall

total
to

Dividend Notice

commitments

high

St., New York 5, N. Y.

$13,-

$25,-

The

Board

declared

Total nef assets of Investors Stock

per

the fund's

Net

asset

Secretary

than

983,000.

STOUT

earlier,
account capital

plans set

brought
the
under plans

June

months

into

sales

Vice President and

600,000 in agreed payments, which

share
the

of Directors

today

dividend of 8 cents

Fund

the Capital Stock

payable July

15,

1960, to stockholders of record
June

20,

1960.

The

dividend

is payable from net investment
income.

R. S. Troubh
Treasurer
June 13,1960.

semi-annual

value

per

report,
share was

Selected

Fund

american

stocks selected for investment

quality and income possibilities. Mail
this ad for free booklet-prospectus to

cents

shares for $1 million. These shares
were
allocated to the portfolios

mutual investment fund of diversified

common

ffitbulajiee

from

71/?

Affiliated
is

tAfateac/ur&effo

declared by
Fund, Inc. This

compares

investment

certificates of record

was

Mutual

Axe

so, if they do it at all, only
after keen investment men have

True, the
.funds^. were> FUn(i, inc., mutual fund affiliate
of mighty Norfolk &
managed by Investors Diversified
neither that PocaServices, Inc., rose from $559,538,hontas
carrier
nor
any
other 851 as of 0ct.
31, 1959 to $601,railroad
makes
the
list
of
the
387,920
on
April
30,
1960,
up
five
dozen
leading favorites of
$41,849,069 for the first half of
more than 1,600 financial instituthe current fiscal year, Joseph M.
tions.
Fitzsimmons,
Chairman
of
the
Contrast this with the record of
Board and President, announced
are

investment

per

But

the utilities:

from

cents

seven

buyers

Western.

utiiiti^c

ary

Railway.

net

the

holders

June 17, 1960.

dividend

gajn distribution of 50 cents dur-

there's scant danger
they'll win any popularity

funds,

DubiiP

ea.

ing the past six months.
jn the past year, the president

contest. In the first quarter of this
year,

anCC' °" an. ga!' pu„Wlc utUltles-

and

our utility
industry. But the inclination is
strong to predict that they will

they
And,

now,

income, payable
1960

trust

lt may very wel1 be' however>
that the New Era wil1 also mean a

have

there

been times when it appeared

THE PARKER CORPORATION

net

ance

appeal of

Ph°t0g,"aPhy

City,

Electric

industry
would "remain the highest-quality investment medium in the '60s
unlike

Incorporated

Atlantic

convened,

the

Edison

20,

share from

per

investment

June

itvciiT*

Fund

to 30 cents from investment income and 45 cents from realized

automation.

where

plpftmnin?

anH

cents

Life

dividend

Total dividends for 1959 amounted

common

difficulty

Pmiinrripnt

paying

at the

They simply
don>t h»ve the luster of electronics
or

$26.15

Massachusetts
is

paid in the second quarter of 1959.

for

report

concealing it.

DIVIDEND

ago.

these

enthusiasm

message, but if institutional man-

year

arouse

widespread

the fiscal year ending Apr. 30 net
asset
value
of
$24.45,
against

they seemed to have

Johnston

agers, brokers, traders and oddlot buyers were filled with fervor,

Life Fund

close o{6 the half_
year
jn
the following
industry
groups:
chemicals, electrical

ments

payable June 24,

only time will tell.

ure,

Trurtm-

sods

new

£ 1 / call

The

was

utilities have considerable capital-

Lomb"

Tpyas

the other

little-needed

blast

CITY

teeming

Bausch

ii0
lis-

many

The

A^nriafp^

midweek.

ADDRESS

while
,

heeded.

and

™

NAME

that

To*

Varian

menfs

□

^ cause

urging

feel

managers

that vseveral

strongly

clarion-clear

and

few

canclles

both

□

the

heard

was

•

nnnparL
appealed

write to

one

investment-fund

ntVm-p^ toRerjnbl;ace the Ploddin.g regulated industries.

Wellington Company. Inc.
Philadelphia 3, Pa. cp
Check

How-

voice

carriers

Ask your investment dealer for
or

was

C2 4.i° ra
of
the

growth of capital and

future income.

prospectus

glamour!

butter!"

the

actually

land.

our

"Up

and

last week

ever,

possible long-

And:

period

fund, which invests princi¬
pally in common stocks or their
equivalent, had its larger invest-

Plain Janes

stocks

the

The

in¬

current

during

responding period

bonds and preferred stocks
selected for conservation of

principal and

income

totaled 20V2 cents per share, com¬
pared with 191/4 cents for the cor¬

A BALANCED

A Common Stock Investment Fund

Investment

CALVIN BULLOCK,

objectives of this
Fund
are
possible
long-term
capital
and
income
growth for its shareholders.

LTD.

Established 1894
ONE

WALL

STREET,

NEW

Prospectus

YORK 5

upon

I1VC.

request

Hugh W. Long and Company, Inc. 1
Prospectus from your dealer or

Name.
Address.

Lord, Abbett & Co.
New York

—

Chicago

—

Atlanta

Los

Selected Investments Co.
135 S. La Salle St., Chicago 3, 111

Angeles

187B

Elizabeth 3, New Jersey

(2614)

The Commercial and Financial Chronicle

STOCKS

El't'nics Rights

BY LEO I.

local

years.

BURRINGTON

As a group New York City bank stocks are considered to
have special investment attraction for the above
reasons, together
with their established record for efficient
operations. These banks

Laboratory For Electronics, Inc.
(Boston,! Mass.)
is
offering
its
stockholders the right to subscribe
for
63,656
additional
shares
of
the

rate

record

June

prices for many of the nation's leading bank stocks are
considerably from their record highs at the beginning of
this year. Investment opportunities, from a timing point of
view,

subscription price is $35 per
The right to subscribe will
expire on June 30, 1960. The of¬

exist for

or additional bank stock commitments,Many bank
selling at modest prices relative to the higher earnings
indicated for 1960.
They offer reliable and growing investment
returns, combined with defensive characteristics and healthy
growth potential.

share.

stocks

fering is being underwritten by a
group headed by Paine, Webber,
Jackson & Curtis.

inventory;

proceeds

nancing not
under

the

from

the

fi¬

applied will be used

for

company's

during

Banks

company

approximately $28,29, 1960. Sales

year ended April 29,
$38,526,000, compared
with $20,410,000 in the year ended
April 24, 1959; net income in the
were

years

was

Laboratory For Electronics, Inc.
is engaged principally in the re¬
search, development and produc¬
of

electronic

aviation

and

equipment

other

military

Its products are grouped

system

aircraft.

indication

ous

his

latitude,

longitude, ground speed and
and distance to

course

destination.

rates

will

outstanding,

and

Devoid

material

"money"

the

700,208

be selected from

the

Irving

Bank

Trust

Chase
•

Chemical Bk.

Hanover Bank,
Girard

Trust,

National
Bankers

in
Partners

Sixth

formed

Street to

securities

10.6

8.8

14.2

12.2

Detroit-

„

FIRE & CASUALTY

INSURANCE STOCKS
Bulletin

Request

Laird, Bissell & Meeds
Members New York Stock Exchange
Members American Stock Exchange
120 BEOADWAY,

NEW YORK 6, N. X.

Telephone: BArclay 7-3600
Bell

Teletype NY 1-1248-49

Specialists in Bank Stocks

came

was

cancelled)

shortage

was

in just

deposits funds

the

weakening, adding to
;

•

Further easing of the steel mar¬
ket is indicated this week in re¬
duction in net

charges for lighter
tinplate. The initial
move, made by U. S. Steel Corp.
of

gages

reduced

thickness

the

and

lighter

:•

gages.

Steel Industry to

from

Rate

First

Summer

quarter

mill

products

than

those

and

are

imports
85%

higher

first

quarter

were

steel

1959's

coming into the U. S. at

4.2

14.1

12.2

1.20

3.6' '

14.3

12.5

reports.

69-

2.40»

4.3

13.0

2.00

4.3

14.2

12.5

58-

2.50*

4.7

13.1

11.7

67-

2.00

3.5

12.0

10.8

York—

45-

the

first

1960,

1.4

steel

invaded

three

million

months
of

market

the

Bank

National, Phoenix
Average for 25 stocks:

2.40

3.2

12.1

11.9

58-

1.60

2.9

12.9

13.3

65-

1.60

2.6

14.2

14.7

3.00*

4.1

12.0

12.9

period, the U. S. will be a
importer of 3.5 million tons

61-

1.00

1.6

17.9

23.6

steel

3.8%

13.7

12.8

3.8.

14.3

14.0

4.2

12.0

11.8

during 1959-1960 period.

lower

the
latest 12 months earnings
through March 31, 1960 compare favorably with the
average 1959
price-full year operating earnings. About one-half of the banks
tabulated also supplemented cash dividends with
stock dividends,

characteristics

bank

stocks.

net

this year.

Few

expect

the

year-end

total

effect,

dividends strengthen the earning power base of
banks.
are
plowed-back to help meet an accelerated demand

$31.33

Spending for plant and equip¬
is still being looked to as
one
of the strongest factors that
could keep the 1960
economy on
a

record-breaking

"Steel"

big

said.

second

campaign,
it

But

half

Manufacturers

will

take

overcome

slow start.

Philadelphia

believe 1960's capital expenditures
will top the record

(set in

by 4%.
Producers of
anticipate a rise of 26%

1957)

durables
last

over

while producers of nondur-

year,

ables

see

This

only

Week's
On

6% improvement.

Steel

Output

Based

62.3% of Capacity

American

Iron

announced

erating ' rate

and

that

the

Steel

the

steel

op¬

com¬

will

average
*110.5%
of
steel capacity for the
week, begin¬

ning June 13, equivalent to 1,775,ingot and steel castings
(based on average weekly produc¬
tion of. 1947-49).
These figures
000 tons of

compare with the

actual levels of

*109.3% and

1,756,000 tons in the
beginning June 6.

week

Actual output for last week be¬

ginning June

one

stock

imports will reach 5.6 million
(vs. 1959's record 4.4 mil¬
lion), but marketing executives

loan¬

able

funds while leverage still remains
high because deposits
(borrowed funds) grow on the increased,
though uniquely low
percentage, common stock base. The trend is upward for banks

higher percentage earnings return on book value.
deposits, which cost less to administer
loss, as well as loans which have the

highest rates, are able to turn in the best
earnings performance
over a period of time.
Banks enjoy certain tax
benefits, particu¬
larly from sound bond portfolio
supervision, which strengthen
their asset positions and reinforce
their earnings growth.
Large size is advantageous in banking and this
characteristic
largely explains the trend toward branch bank
expansion and
acquisitions of banks; five major bank
mergers have occurred
during the 1959-1960 period: Chemical Bank New York
Trust Co.,
Morgan Guaranty Trust Co., Pittsburgh National Bank
(Fidelity
Bank & Trust &
Peoples First National Bank), Firstamerica's
acquisition of California
.Bank, and Wells Fargo Bank American

Underway is the merger of Harris Trust &
Savings
Chicago National Bank.

The stocks of
leading banks in major cities continue to hold
particular promise as sound
investments. Factors underlying their
relative attractiveness include
opportunity-minded and proficient

61.6%

are

1960

admitting privately that the
figures will exceed estimates

made

early in the year. They ex¬
imports to drop sharply

6, 1960 was equal
the utilization of the

month

two

the

strike settlement.
Some

tracts

made

Big

gains

jumped

the

noted

Sheet
to

1959

144,215

247,339
figure.
tons

Plates

—

tual

weekly production was placed
2,620,000 tons, or *163.1%.

♦Index

of production is based on
weekly production for 1947-49.

age

steel

furnaces

—

revised rate.
Output:
775,000 ingot tons.

Orders

aver¬

Steel Production For May Totaled

8,832,000 Tons
The

production of steel totaled
8,832,000 net tons of ingots and

for

most

Iron and Steel Institute
today

in its

monthly preliminary report.

The
with

May production compared
9,777,857 tons made during

eight April

at
62.3%
1.7
points above the previous week's

About

1,-

products are
declining.
Sales executives
expect no sustained improvement
still

operating rate
on 1947-49
weekly produc¬
tion) was *126.4% and production
2,031,000 tons. A year ago the ac¬

tons—

production may fall
below 60% of capacity in July
and
early August, "Steel" said.
Last week, steelmakers
operated
their

capacity

A month ago the

strip

bled, from 75,978 tons to 158,849.
Pipe
and
tubing
jumped
80%
from 93,984 tons to
168,251.
S.

fore¬

(based

can
some

and

times the prior year's total.
Large
structural shapes more than dou¬

that

Estimated

week's

are

products.
imports soared
times

capacity

tons.

this

steel

for

still coming steel for castings during May, and
long term con¬ 53,350,750 tons during the. first
five months of
during the strike.
1960, said Ameri¬

imports
result

annual

net

based

pected

within

1960

(

tons

Earnings
for

62.3%.

based

com¬

melting

ment

cast

12.9

generally

"Steel's"

ton.

"Steel" commented that if the
last three quarters match the first

4.8

the

cents

slipped

gross

period.

2.30*

that

grade

13.1

8.4

table

sluggish

heavy

re¬

substantial

and

steel
operations.
posite, on No. I

percentage

14.5

9.0

2.00*

the

re¬

week,

demand

507,000 in the like 1959

15.6

4.4

3.00*

from

domestic

tons from

3.6

2.00*

12.00*

♦Increased cash dividend payouts

soon

second

absence

12.1

1.50

Tr.

flecting

the

148,570,970

11.1

A._

for

to 528,000

12.4

12.0

13.6

will

market continued its

scrap

Jan.

13.6

312

79-

The

(vs.
757,555 net tons in
1959's
first quarter). U. S.
exports in the
first quarter inched

3.7
4.5

4.7

consumption

decline

foreign

tons

335-246
78-

Cleveland

ratios

11.4

71-

National, Boston

noted

annual rate of 5.6 million

steel¬

marked

are

panies

orders

flected in mill operations.

The

Months

"urgent," in¬
dicating low stocks are being held
by many consumers. An upturn

•

Operate at Low

percentage
received

being

width

2.40*

high

makers

ex¬

Bank and

long
They

Co.

not

70- 55

Trust

could

orders

tons,
"Steel," the metalworking weekly,

Loans which produce more
and result in less risk of

Comparison & Analysts

heavy

11.5

steel

13.3

obtaining

first

quarter
imports.
Auto¬

placed

largely

are

the

13.2

51-

Valley

for

15.8

covers

of Samuel Friedman.

automakers

15.3

while 12 of the banks
paid out higher cash dividends than in 1958.
The issuance of stock dividends
from time to time

Building, under the management

18.3

47-

salient

steel

4.1

1.72*

the

last to do so, will clear up its for¬

eign steel only this month.
The heavy shipments of
foreign

4.0

53-

Pennsylvania Banking
Philadelphia Natl. Bank

One major automaker, the

3.8

Sakier Opens Branch

pected.

2.40

price-earnings

MONTI CELLO, N. Y.—Sakier and
Cp. Inc. has opened a branch of¬
fice in the National Union Bank

The effects of automotive
purchases of foreign steel lasted
longer than almost anyone ex¬

4.00

2.00*

Fargo-American
Security-First Natl., L.

Co.

good.

(5)

3.00

are
Russell B.
Pecaut,
Richard A. Pecaut, Jackson S. Pe¬
caut, and M. J. Pecaut. Russell B.
Pecaut was formerly a partner in

W. Britton, Pecaut &

production

the

101

will

outlook

and

increased

Manufacturers Natl., Detroit

en¬

or¬

A
now

have

the softness.

15.3

4.7

business.

inventories,

Rec. P/E

4.2

City Bk.,

con¬

machinery steel

tinplate releases and the
mill logjam on tinplate is break¬
ing up. Mills are reducing their

Lat. 12 Mos,

1,60

First

tap

in order entry until late
July or
early August.

their

market

18.5

55-

Trust, N. Y

New

a re¬

materialize.

Canmakers

pected.

1959

2.00*

market

38-

Trust..

Natl., Cleveland
Southern, Ga.

should

when

2.9%

50-

with

Institute

steel

71-

N. Y....
of

Yield

in the

anticipated. As
improvement in

some

ders

(which
stocks

page

to the extent

charges for

Avg. P/E

50-

Central

Bank

and

neighboring counties.

capital spending for
still high. It has not

yet been felt

makers

profitable

94-, 73

Philadelphia-

Bank

$4.00

Citizens &

First

service

118-

Crocker-Anglo,

Calif.
Manufacturers Trust,

Divid.

139

55-

Manhattan, N. Y

Pittsburgh Natl.

Iowa—Pecaut

from

this year is

bulge

raw

44-' 37

Trust

Company.
First Natl. City, N. Y.-_
Morgan Guaranty, N. Y

under¬

Price

172-135

Wells

gage

vital

Price/Earn'gs Ratios

Mean

1960rI959

Pecaut & Co. Formed
been

rate

responsible

The

Approx.Bid Recent

Natl.

CITY,

bank's

clock

from

recession

Price Range

at 511

the

Price Action of Leading Bank Stocks

Sons, Dominick & Dominick, Hayden, Stone & Co., W. C. Langley
& Co., Tucker, Anthony & R. L.
Day, C. E. Unterberg, Towbin Co.

offices

around

quarterly earnings
accompanying table lists 25 of the 50 largest banks
which release such
reports quarterly.
results.

are: '■

Company has

hazard

Income

"over-the-counter" market, bank
managements are doing a better
job in keeping investors informed than heretofore.
Today, over
one-half of the 50 largest U. S. banks release

Co., F. S. Moseley &
Co., Shearson, Hammill & Co.,
White, Weld & Co. Incorporated,
J, Barth & Co., Alex. Brown &

SIOUX

tends

grow from

can

investments.
also

those with

common

Hemphill, Noyes & Co., Hornblower
&
Weeks,
Lee
Higginson
Corporation, Carl M. Loeb,
Rhoades

continue

higher yields, such as the Phila¬
delphia banks, to those representing dynamic
growth situations,
such as the Arizona banks.
Although investors are inconvenienced
by having to follow their bank stocks price
performances in the

Detroit

group

adverse

any

loans

L;... a-.
satisfy different investment objectives, individual

stock.

writing

work

channels.

can

and

services

obsolescence

$4,546,009 bank
debt under the Regulation V-Loan

members

Bank

prosperity earnings

loans

other

Other

have

capitalization

consist

and

is not expected
earnings outlook.

In periods of

received

Upon issuance of the additional
shares

3 ¥2%
bank

earnings due to the inherent
Earnings can rise in periods of recession due
governmental policies which increase
loanable

trust

resistant.

in three

for

1960

stimulating

fiduciary,

uses.

the company, the
system gives the pilot a continu¬

lowering of the rediscount rate by Federal Reserve

the

higher

for

Continued
the

(4)

funds for banks.

principal categories, namely, selfcontained aircraft navigating sys¬
tems, air traffic control equipment,and computer products.
Its most
important product is a doppler
navigating
Developed

the gains registered

favored position to produce steadfast
nature of banking.

$1,226,000

and $578,000.

tion

For the full year the indicated 12% to 15%

strong and the prime rate of 5% still prevails. Should the prime
rate be lowered, any drop would have to exceed the
drop in the
rediscount rate before the return
being realized on bank loans
would stop advancing.
Apart from the status of the economy, bank stocks are in a

April

respective

stock dividend payouts during

be followed

operating earnings will parallel

from

effect

the

1960

numerous

doubt

in 1959.

V-Loan

the

The

sult,

The recent

Backlog
440,000

will

year

struction and

Agreement.
amounted

situations.

increase

borrowing

STATE OF TRADE AND INDUSTRY

1959 six-month period.

larger volume of busi¬

which will require larger ac¬
receivable
and
a
larger

order

historically low, under 50%

by increased per share
cash payouts. Bank stocks generally can be expected to maintain
their past investment standing as good income
producers over
the determinate future.
For leading banks, first-half 1960 oper¬
ating earnings are likely to show gains of 20% or more from the

counts

to reduce the need

suburban populations in

new

Present cash dividend payout is

principal purpose of the fi¬
nancing is to enable the company
ness

operations

are

in many
the past

are expected to benefit from
permissive relaxation of vault cash
requirements and lower Reserve requirements. Effective
July 1,
1960, New York banks can apply for geographic expansion of

Bank Stocks

—

down

The

to handle

Week

Market

one

1960.

This

(1) share for each ten (10) shares
held

Thursday, June 16, 1960

services, wider markets served —■ from
to international, highly developed fiduciary and trust serv¬
ices, greater economies from use of automation equipment, and
strong second line managements to assure leadership in future,

BANK AND INSURANCE

Heads Lab. for

stock

managements,'complete

Paine, Webber

common

1960

made in

and

11,600,581

tons

May 1959.

The five-month total was
19,819
tons lower than in the
correspond¬
ing part of last year when the

output

was

record

53,370,569

tons.

According to American
Steel

Institute's

index

Iron and
of

steel-

making the May 1960 output
124.2
of

in terms of the

basic

was

index

average

period
with

production during the
1947-1949.
This compared

142.0

for

April

1960,

and

163.1 for May 1959.
The

five

index

months

figure for
of

1960

the

was

first
152.9

Volume

191

Number

5960

The Commercial and Financial Chronicle

against 154.0 in the corresponding above the corresponding week of
part of last year.
1959 and 6,951 cars or 150.8%
Based on the Jan. 1, 1960, ca- above the 1958 week. Cumulative
pacity rating of 148,570,970 net loadings for the first 21 weeks of
tons
of raw- steel annually, the 1960 totaled 221,663 for an insteelmaking facilities were util- crease of 62,099 cars or 38.9%
ized at an average of 70.0%
of above the corresponding period of
capacity during May 1960, against 1959> and 124,068 cars or 127.1%
of

1960.

The

•

average

Produchon

Auto

16%

Above

Price In- mates collected by Dun & Brad& Brad-, street,
Inc.
Regional
estimates
(1930- varied from the comparable 1959

Dun

32=100)
with

June

272.80

277.70

13,

compared
earlier and

week

the corresponding date

a year ago.

Although trading picked

fro-pfi

Output in Same Period of 1959

:;l The U. S. auto industry, which
^completed it^ 4}OOMOOth car or

nnvr-nnf

the

prices

..molr

current

week

rjit

Trilrk

from

Ex-

levels

JlSrilSll JDSrylllUm

nrevailpd

An underwriting group managed
Kuhn, Loeb & Co. and Mcdle Atlantic —1 to +3; West Donald & Company is offering
North Central and Mountain —2 tod&y (June 16) 435,182 shares of
to +2i West South Central and common stock of
The Brush
Pacific Coast —3 to +1; New Beryllium Co., of Cleveland, Ohio
+
at $42 per share.
England —4 to 0.
,-1

were

;

<C/10

t-vnv.

offering consists of 260,000
new
shares
being sold by the
company to finance its expansion

Nationwide Department Store
Sales Down

j...

13%

June 4 Week

■

program and

175,182 shares being

durine

corn

sold by certain stockholders

Department store, sales on a
that favorable weather < country-wide basis as taken from
in
prnwinp
arpa?
Hie
uefcua tta Luivcn

^ases

OtOCK Oil 61*0(1

percent-

Central

+7; South Atlantic +2 to -f6;
East South Central 0 to -f 4; Mid-

light A fractional dip occurred in
rye prjces
reflecting a slight de-

Reports

North

The

markets

„

the following

by
East

ages:

IT*

active and

were

in some

£d

■

ex-

wheat

down moderatelv

were

offerings

Qtrn

e 19 9 Week

•

week

cline in volume.

June 4 \yeek Was 14.5% Below
.

the

p0rt transactions

1958.

jnter

truck in the week ended June 11,

will pass another significant milestone within the next two weeks

PVlo

1 v.

d with 47 one yearweek
ago
in the
corresponding

and 40

i-»

traffic

end

tremely low levels earlier

fvno

'
,

jiw,™

the

type

iRo/

Commodity

compiled

street, Inc., stood at 272.55

19?8- There were 53 Class 1 U. S.
railroad systems originating this

capacity

capacity.
i

dex,

abo,ye tbe corresponding period in

during April
for the first
five months of 1960 was 86.2% of
80.1%

Wholesale

(2615)

resenting the sale of

rep-

part of the

the Federal Reserve Board's in- Brush Beryllium holdings of eachJ

Intercity truck .tonnage in the ??"r?ge(?P""hases^orndunng dex for the week ended June 4, of such stockholders,
week ended June 4, was -14.5%
1960, show a decrease of 13% beThe principal busii
ailUW U UCH CdSC UJ. lO'/O
UCAilC
fji
bUSinCSS Of the
iionth compact car of 1960, ac-: below the volume in the corres-,
corn supph^. were up low the like period last year. In company , is the production . of
cording to
"Ward's Automotive P°ndl^ we.ek of 1959, the AmenPP
t
y,.d in nafc
Qini"" the Preceding week, for May 28, beryllium, beryllium copper,. ,beReports."
can Trucking Association, Inc., o.Qh gnriVad
t"
an
increase was reported. For ryllium oxide and other beryllium
new
"Ward's"
said
the
four
a[mou,n™; Truck tonnage was
the four weeks ended June 4, a alloys and compounds and fabrialso
13.3%behind
that
of
the week earlier.
There was a no- j op0 (jecrease was registered over cated beryllium shapes. The
it

when

the

out

turns

Lone-mil-

.v«o

j.-X.XJ

„

xrar-a.

wa«

production

year's

this

t.hhf

Jot.
=Tn?,nftd

last

tirne

the two

vear

L LStl

th™

cars

wi„?trvtnaf

o n

j
Memorial

Jntnnt

mnrl

than

1i
ofisi
uio.uoo;.

nrnviADctPpl
previous
weex

Triirk

prouuciion oiz%ooo units tmoug
comomea

HUlUinOllVG

volume.
u-

icaono

IUI

grams

factories

auto

most

ended

June

their

and

normal

the

t
(

con-

tinued with its four-day program,

"Ward's"
for

said

plant shutdowns

"inventory adjustments" were
previous

noticeably fewer than in
weeks.

Seven plants operated on
four-day schedules and two were

closed

all

offered

troubles

Labor

week.

interference with

some

strengthened and an appreciable
rise occurred in prices.

are

based

Department.

The

refiects tonnage handled at
than 400 truck terminals of
nnrriprc

mnn

cf^n^rQl

report

Lumber

4 Were

wholesale

and
pre-

shipments of 460 mills

last

of 16%

°ve*_the sam

(2,948,783).

year

1959 Week
ween

distributed
and

electric

amount

estimated

according

Institute.

Output

kWh

energy

by the electric light
industry for the week

power

be-

]0w production during the holiday
week ended June 4, 1960. In the
same

week

new

mills

were

8.4%

tion.

Unfilled

mills

For

orders

these

below

orders

amounted

stocks.

produc-

of reporting

29%

reporting

gross

softwood

mills, unfilled orders were equivalent to 16 days' production at the
current rate,
and
gross
stocks
were equivalent to 53 days' production.
por the

year-to-date, shipments
reporting identical mills were

47%

above

that

632,000,000

the

weeks total of 13.134,OOO OOO kwh
and showed a gam of 263,000,000

kwh.,

1.9%

that of the

above

below

orders

production;

7.9%

were

produc-

the

eek endfd reporting mills proMay.28, i960, was
of
below;
shipments
below; orders were

24.0%

1959
•

Loading of

'the

week

totaled

•tion

ended

574,301

Week

23.1%
were

below;
11.5%

and
below.

Slight Rise

Mignt nise in Weeklv Business
in weexiy Business

•106,316

This

cars

the Associa-

cars,

American

nounced.

Railroads

was

an-

decrease

below

15.6%

the

and
6.4%
below the corresponding week in
1958.
Comparisons are distorted,
however, as the Memorial Day
corresponding
a

decrease

Holiday
rent

week

1959

of 39,080 cars

observed in the curweek
but not in the

was

1960

corresponding

week

1959

Commercial and industrial fail-

the

Dun

preceding week, reported
Bradstreet,
Inc.
While
were

above

the

254

were

week's

the

edged 1% above the

Liabilities

high

involved
failures,

1958

pre-war

$5,000

previous week and

On the other hand, small casualties, those with liabilities under
$5,000, dipped to 22 from 25 a
week earlier and fell considerably

below their toll of 41 in 1959.
Twentyseven of the failing businesses

had liabilities in

excess

$100,000 as against 30 in the

pre-

66,087 cars or 10.3% below
preceding non-holiday week.

were

ported

11 560

were

loaded

revenue

with

one

cars

highway trailers-(piggy-

Wholesale Commodity Price Index
Slips Fractionally from Prior
Week

re-

increase of 3,019 cars or

Cotton Exchange moved

There was a fractional decline
in the general commodity, price

35.3% hogs,

and

lambs.

The

crease

Daily

re-

new plants are under construction,

the

°ne at Shoemakersville, Pa. to
replace the Reading plant, the
other at Hayward. Calif,

reported

the four
a 1%
in-

over

to June

trading.

was

nViAnmrl

showed

WMgjjh■ PjMMo.^.dex
Declines in Latest Week

For the second week in a row,
the Wholesale Food Price Index,

and was down moderately from a
It dipped 0.5% on June
7 to $5.90 from the week earlier
$5.93, and it was down 3.1% be-

year ago.

wholesale

cost

™rresPondi"g
va n

this

cing

week

were

corn, oats, barley, beef, bellies,
lard, milk, cocoa, eggs, and steers.
iMHpV

rprvrpcpntc

nr,r?

npr

thp

Qiirr^-

nnnnH

total of the price per pound of 31
raw

food stuffs and meat

gen-

eral use. It is not a cost-of-iiving
index.
Its chief function is to

Ppf-py» |\/rrvT*0'QTI

rainy Saturday in
retail
trade
rose
moderately from the prior period
in the week ended this Wednesday and was up slightly from a
year ago. The most appreciable
Despite

some

areas,

increases

year-to-year

in men's apparel,
conditioners,

occurred

nHV»or»rY-»ol

WlltJIb

1 llul Illal

matched
and

those

remained

Net
the

proceeds from

will

common

sale

the

initially

be added to the general funds of
the company. It is expected that

portions

these

funds

may

Inc<

organized under the laws
1960 as
successor
to a business begun in

was

Delaware in February,

4951 With its main plant, office
and warehouse in Miami, Fla., the

4-sx

plant

produce

beryllium

billets

month to 24,-

per

it<?

and

rnrnnanv

subsidiaries

are

lbs, per month, and to expand
beryllium hydroxide capacityfrom 35,000 lbs. of beryllium content per month to 60,000 lbs. per
month.
metal

The

additional

output

will

beryllium

used

Brush Beryllium in its fabrieating operations to meet increasing demand for fabricated beryllium shapes.
Sales during 1959 amounted to

$18,076,000

compared

with

$12,-

669,000 in 1958 and $7,962,000 in
1957 while net income increased
to $1,482,000 in 1959 from $801,000
in 1958 and $361,000 in 1957.
Capitalization

the

comnanv

ofP Jun^'T 1960* adjS "to
give effect to issuance of the
as

260,-

000 shares being sold by the
comprised

pany,

corn-

$6,233,500

con-

vertible subordinated debentures
due 1974 and 1,885,959 shares of
common

stock

en3ed i^almLrall DhasIs of C0mm0n Stock*
thf air.conditionine business inengineering
design' in- F°rin Commonwealth Sees.
r

StaffinTervTce.^ Customers
^SCent houles! office^buiM^ng*;
iwoio

KniiHovo

huildings

ni,hlir

mnWc

factories

and

r»

110

WILMINGTON, Del.
wpalth

Common-

uoc.

been formed wRh ofHces at U00
King Street

engage

securi-

«i ndusUi a linstallations tiesbudnessOfffcTs
housin

developments,
f

nrjvafp

also

company

well

residences

The

warehouses

buys,

llOVifUUVvD

<*V

f
of

f
types

PofliDTlypPnt Sl?are

Rock

vice president

P"®»P y

narts

rnnfijtjoning

Histrihiitnrs

and

that the

(AAA"

iareest

installers

and

Florida

'
Net sales of the company rose
,

from

about

nrpdprp_or

$45,000

first full year

1951

(the

Dartnershin^

126,591 for 1959. Earnings for the
period

1959
.

NEW ORLEANS, La.—Philip F.
Hack is engaging in a securities
business from offices at 2344 St.
Charles Avenue under the firm
name of Philip F. Hack & Co. Mr.
jjack was formerly with Madison
Securities Corporation,

of operation of the

Piedecessor partnership) to $1,-

taxes

;

P. F. Hack Opens

suocom-

secretarv

andPresldent> secretary

and treasurer,

air^ronHitioning
air-conditioning

bllfeved

Se-

lames

are
Baxter, president, and Roland

and distributes at wholesale, vari-

were

$107,488

cents
-nn nnn

per

after

COmmon

«Wpc

dt-m

com-

upon complexion oi me current

the similar 1959 period, according financing, outstanding capitalizato scattered reports. ;
.
tion,of the company will consist
The total dollar volume of retail Gf 250,000 shares of common stock,
trade in the week ended June 8
,
nf
was unchanged to 4% higher than $1
PaT v*™ »
$
»6 6
a year ago,

used

000

week
over

Elmore

fr6mfiz,S66 lbs,

and snare on me ^u,uuu snaresi pres
offset ently outstanding, making this the

well

the

vacuumTcast

slight dips in women's apparel best earnings period in the
and linens. Sales of new passenger pany's history,
caIS

of facilities

expansion of the com¬
pany's fabrication facilities. It is
planned to increase the capacity
of

furniture,
which

will

expansion

finance

AT l

TVXU1 gdll OO \J\J*

Retail Trade Climbs Slightly
Over a Year Ago

txrill

at
the Elmore plant for the produc¬
tion of beryllium metal, and to

Thermal IndusMes of Florida,

cViaroe

finance

1959.

ance of the proceeds will increase
the company's working capital.

pany

itinnal
increase
over
tional

R(7/_

«-»

up at

Proceeds received by the comfrom the sale of the addi-

the 1959

period, and from Jan. 1

the used for financing of additional
end of the week and finished customers installment contracts;
moderately higher than a week for repayment of bank loans and
earlier. There was a slight rise in for inventory purchases. The bal-

earlier

back) in the week ended May 28, level this week, as lower prices
1960 (which were included in that on grains,, steers, and steel scrap
week's over-all total).
This was offset increases on flour, sugar,
an

tionally reflecting lower supplies
and a dip in volume. Lamb price.s
moved up moderately as higher
receipts stimulated buying.
Cotton prices on the New York

air
,.A

sales

over

period last year. For
weeks ending June 4

249

year.

May
unchanged

mained

Peter Morgan & Company offered
on June 14 120,000 shares of Thermal Industries of Florida, Inc.
Common Stock at a price of $6
Per share.

show the general trend of food
the prices at the wholesale level.

254

the comparable week of last

year.

ended

Despite lower receipts in some
a slight dip in transactions, prices on hogs finished
the week slightly higher. In contrast, steer prices were down frac-

in
261
of
rising from

week

York

markets and

when 295 occurred, they

Loadings in the week of June 4,

There

ago.

industries, and in business
machines and communications and
electronics equipment. Plants are
located at Cleveland and Elmore,
In the preceding Ohio, and at Reading, Pa. Two

lllQUSlllGS UlOCK'

rpUck

not

ceding week.

1953

the

New

period last

com-

year

ments for the aircraft and other

s
tem department store
saies in New York City for the
week ended June 4 a 16% de.
crease was reported over the like

yres week endedslightly9 to 283 274 Lower m price were flour, wheat,
increased June from in rye hams potatoes, and hogs.
the

1960,

period last year.
Commodities a d

Failures

and

June

9.1%

orders

new

freight for level of 279 in 1939.

revenue

were

production of reporting mills was
f6.6% below; shipments were

year ago
remained

15.6% Below

Loadings

According to the Federal Reserve

totaled 65,131 bags, as against 62,185 last year.

cotton

duction

casualties

Car

1,850,281 bags,

with

1959 week.

comparable

new

below

Compared

13,766,000,000 kwm,
the Edison Electric
was

ports

below. .Compared with the cor- compiled by Dun & Bradstreet,
responding full week in 1959, Inc., declined in the latest period

:Electric Output 1.9% Above

The

came

States

stocks

12.4%
,.

date

United

cocoa

range

Warehouse

Cumulative auto production for

increase

during the
week and finished slightly below
the
prior period; cocoa trading
moved up somewhat. Arrivals of

5.5%

tion.

time

Cocoa prices moved

narrow

irade Barometer were 5.5%
Trade

Jefferson plant in Detroit.

nri^oo

1,643,193

ceding week.

pared with

sembly at Mercury's Wayne,
Mich., site and at the DeSoto and
Chrysler lines at Chrysler Corp. s

JfSOtodatenowstands atThis esan is
3,426,386 units.

xx/oolr

within

freight

r»Arlincf

reporting to the National Lumber

as-

timated

coffee

prices remained close to the

Below Production
Lumber

slight gain in vol-

was a

ume

com-

Shipments For Week

Ended June

There

-f-roicrVit

carriers of general
throughout the country.

assembly

were

Studebaker-Packard

basis.

resumed

some

Saturday

iney
They

prices were steady. Sales of sugar

survey of 34 metropolitan

week

xne four
the iour
Falcon facilities, the Comet plant
at
Lorain, Ohio,:; and American
Motors at Kenosha, Wis., which is
building cars on a 24-houf-a-day
scneauiesVi
schedules.^

the

findings

areas, conducted by the ATA Re-

week,

operated

routines

five-day

These

four-day pro¬

preceding

the

mon

the week to 166,878 vehicles.
In contrast to the

ehanges . were afA moderate rise occurred in
Smte Memorial Day oc-'flour trading pushing prices up
curred ?(a„Sat!|r<iayt f,y.ea: somewhat. While export volume
comPared
Monday of the latest in rice lagged during the week
week reP°rteddomestic trading picked up and

pstimLii weekly

ddUc

for

losses
losses

n„nrndnrt on
Day production

b°th t®6 week;to"week and the soybean oil and meal markets.

ra.r-i°-year

forrnnahlv 978 000

1S r/q

Previous week °f this ye^. These «ceable decrease in sales of soy- th° same period in 1959 whi]e the ucts are used in - missiles" and
more
decreases are largely attributable be?"s a"d Prlces were down sip- Jan l to June 4 perjod showed a aircraft, in atomic reactors, in the
more'to the Memorial Day Holiday; mficantly, reflecting weakness in 1% deCrease.
manufacture of sensitive instru-

EssSSS
At

prod-

Ta^faU ^veToosted

trnduced

according to spot esti- sundry indebtedness.

E. H

Nelson Onens

E-. n. DieiSOn KJpens
KILMARNOCK, Va.—Edward H.
Nelson is engaging in a securities

business from offices here. Mr.
Nelson

was

formerly with Greg-

ory & Sons> clement A. Evans &
Co., Inc. and Kidder, Peabody

& Co.

With Hardy & Co.
^

Angier St. George Biddle Duke
™w associaited with the investT>rnaf3

Broad

Npw

Ynrk

Pitv

I k
ofi i'
members of the New York Stock
v

Exchange, it has been announced.

?'P
**

The Commercial and Financial Chronicle

(2616)

•l

Edison Electric Institute

!fi

:■

utility

trade

to succeed

Knapp

ple,

association's

S. King

Allen

convention

H. Will, Chairman and

& Power

Sherman R. Knapp,

Company,

) &j

since

■V

the

last

the

Chief Executive, Virginia Electric

Mr.

Company,

association

that

head

Continued

dent

and

Director

Light

The

the

and

The

businessmen

and

those

upon

Sherman R. Knapp

There

versity. He served as an engi¬
neer
in
the
Operating and

Sales Departments
New

District.

Milford

Vice-President
1948.

}h^
2 if

Electric

and

Mr.

1949

until 1937, when he

Assistant

became

Assistant

named

was

Knapp

the

sales

the

President

Director

Company, which is owned by

a group

Atomic

Yankee

of 11 New England

Mr. Knapp has
served

the

been

Institute

Conference

He served

f.Jj'D

Board

He is presently

Co.,

has

including the

served

serves

director

Presi¬

Electric

the

and

National

Planning

Indus-,

Association.

Com¬

the

Connecticut

Bank

and

Trust

Manufacturing Co., the Hartford Accident and
Hartford Fire Insurance Co., the Hartford
Steam Boiler Inspection and Insurance Co., and Scoville Manu¬
facturing Co. He is also a trustee of Connecticut College and a
the

Emhart

indemnity
;v
M
•

Co.,

meet

the

Director of ACTION, Inc.

■

Philip A. Fleger, Chairman of the Board and President of
Light Company, was made the Vice-President of the

have

facts

de¬

been

challenge

the

must

$750 billion. We will have to in¬
yearly sales by $165 billion

crease

about

52%

years, to keep
production.

Reaching
tion

level

$600

over

$750 billion produc¬
1870 will provide
of

family

in¬

personal

people—an

per

these

with expanding

billion

for

come

within

average

compared

with

$7,400 today. With improved
incomes, the average family will

able

ard of

The

ton,

afford

better

Duquesne

Edison Electric Institute at the
After

West

graduating from

Virginia

trade

the

law

association's eonvention.

school

the

University of
Philadelphia Co.

1926, Mr. Fleger joined the
system, of which Duquesne Light was a part. He
to General Attorney of Philadelphia Co. in
1939,
-President

1940,

Senior Vice-President in

1942

was

businessmen

—and

1960's.

market

For

the

and

Vice-President in 1946.

ii.
ft

Mr. Fleger has been Chairman of the Board and Chief Execu¬
tive Officer of Duquesne Light
Company since 1950. He is a
Director of the Edison Electric Institute and has been for the

si)

and

Idaho

larger

serve

the

businessmen

mittee.

He is

Association
member

i?!

also

the

1956

member

Edison
EEI

the Executive

Committee

Illuminating

Companies
Advisory Committee.

received

the

Duquesne

and

the

former

Award

for

Leadership in Management. A year later he received the Pitts¬
burgh Junior Chamber of Commerce Award as Man of the Year
in Business.
Last

m
'

year

Pennsylvania

Western

Fleger received the
Chapter of the Society of

Industrial

the

Western

Realtors

Pennsylvania's outstanding industrialist for 1959.
Other

Is;
ft/-1

award

addition

the

EEI

above

Officers

i;..

The
dent

administrative officers

and

Assistant

Managing Director,
Managing Director.

are:

Edwin

and

The

EEI's

Vennard, Vice-Presi¬
Morgan, Secretary and

office

Third Ave., New York
City.
New

Board

located

750

Directors

■

Board

tit
t

J.
j

appearance as newly elected members of the
Directors, with terms ending in 1963, are:
Branch, Jr., President, The Southern Company, At¬

Dignan, President, Boston Edison Co.,
Boston, Mass
President, Florida Power & Light Co., Miami, Fla.
President, Southern California Edison Co., Los

R. H. Fite,
K
Horton,

Angeles, Calif.

iij

Allen

King,
neapolis, Minn.

.«»!■>

kiK

!>'?;♦

[j v<|

:r$

lanta, Georgia.
H. J. Cadwell, President, Western Massachusetts
Electric Co.,
Greenfield, Mass.
T.

Luthringer, President, Central Illinois Public Service
Co., Springfield, 111.
P. B. McKee, Chairman and Chief
Executive, Pacific Power
& Light Co., Portland, Oregon.
Mitchell, President, Northern Indiana Public Service
Hammond, Ind.

;Wj'
j -i

ff.

Rincliffe, President, Philadelphia Electric Co, Phila¬

delphia, Pa.

r-:*

ade.

¥ *

the

border

this

risk

and

that there is

agree

capi¬
need

for

an
educational process to ac¬
quaint investors and lenders with

potentialities

from

Except
side

for

Alaska

slow

realized

oil

have

exploration,
interests

out¬

been

there.

The
Japanese
have
not
slow, however. A Japanesefinanced $50 million pulp mill is
going up in Sitka, four leading
been

steel

companies

Japan sent

team to Alaska to survey

development,

iron ore
other Jap¬

while

industrialists

anese

in coal and oil

interested

are

in Alaska.

and

annual

600,-

product

gross

nearly $1.5 billion, Hawaii is a
dynamic market for trade. Its rate

population

growth,

for

ex¬

ample, is faster than that of the

Most

land

abroad
ward

Northwest

naturally
the

across

Alaska and

looks

area

looks

west¬

Pacific—first

Alaska is

ocean.

key part of

Pa¬

your

and has

area,

since

been

well

can

already known in

from

all

add to what is

the Northwest

Northwest

had

area,

phenomenal
growth in recent years, and has a
great potential for expansion in

decade.

Alaska

Imports
$12

postwar
lion

from

from
million

period

find

the

publicity about

the

past

two

considerable

years,

Canada

Not many of our people realize

big

Congress

voted

its

state¬

Alaska leads all other states

the

rate

population

growth

and where population goes, so
goes

demand, and

consumer

too,
eco¬

nomic growth.

will

20,000

under

acres

estimated

million
able

for

farming

crop
years

the

of the

While

acres

there.

were

195%

acreage

the

countries

think

clearly in¬
increase

first

seven

Alaska's

trade

main¬

exports

have

mainland,

with

other

been

1946-50

$33

over

mil¬

its

goods

market

later.

its

50th

twice

States

buys

from

mainland

much

every

state

the

nearly

sells

good and

growing customer for the Pacific

1957.

Total

exports

million
went

from

sent

investments

even

into

countries, and the Bank of
Tokyo operates a branch in Los
Angeles.
Gross national product in Japan
jumped
from
$12.3
billion
to
nearly $30 billion in the past dec¬

ade—averaging a yearly gain of
8%. Per capita income has more
than

doubled

world

for

the

same

trade.

time.

the

across

Meanwhile,

it
backyard.
It is building a $27.5 million fer¬
tilizer
plant for East Pakistan,
also

cultivates

has

its

own

cement

factory in Singa¬
shirt factory in Colombo,

pore,

and radio and

auto

plants in For¬

mosa.

Japan also
however, and
sizable

moves

far

has

number

afield,
of

projects

countries.

going in other
Latin America, for

instance,

Japanese

arrangements

companies
with
local

has invested
$35
Brazil, including the
building of an $18 million ship¬
yard, and is also helping build a
500,000-ton steel mill.
in

As
aggressive as Japan is in
pushing its exports, it has dropped
from its prewar position of fourth
place in world trade to eighth

place today.

Japan, however, is a growing
buyer from other nations, and its
imports have passed prewar levels.

expanding economy has lifted
living standard of the people

the

since 1950.

100%

over

tor

Far

The

East

developed to
is

now

compared

VJ-Day

Formosa

and

key fac¬

has

strong and almost
position. Its pop¬
nearly 12 million

self-sustaining
ulation

trade.

economy

six

million

present

popula¬

tion of 18 million in Canada. For¬
is

mosa

size

market

for

the

substantial

trade.

Formosa,

estimated
million

however, is
population

Chinese

overseas

between

outside

the

and

Communist

mainland.

tied

Nationalist China through

and

warm

These

people,

friendly

relationships,
group of
greatest importance in future
trading on the far side of the Pa¬
constitute

Northwest.

influential

the

Across

the

Seas

Moving westward
cific
a

come

over

the

Pa¬

the

Philippines,
growing and flourishing market

for

trade.

The

overcast

skies

political uncertainty seem now to
clearing and brighter days ap¬

to lie ahead. Then

pear

and

part

New

the

Zealand

British

to Aus¬

which—

Common¬

wealth—have close economic fam¬
ily relations with Canada. These
are

important markets for United

States

trade

Australia
economic
dollar

well.

hydro-electric

River
for

power

opment
cost

ian

new

great

billion

project

will

provide

further

devel¬

programs.
Incidentally,
of that single project is

national
-

and

product
a

half

1950.

immigrants
have poured into
Australia, mostly
-

cific

rim.

Many
nese"

these

Chi¬

"overseas

key financial and
trading positions in Manila, Sing¬
occupy

Hongkong,

apore,

Saigon. They
ness

they

are

Bangkok and
prominent busi¬

are

leaders

cities

these

allowed

not

and

become

citizens of the countries in which

they live.

Many
about
can

undergoing

upsurge.

Snowy

electric

the

million

$3.8

has

China

year.

Certainly, Hawaii is

lion

billion

Japan

instead

other

Beyond

return.

This

history

creditor

nation.

Communist

controversial

time
a

Nationalist China
average

the

equal to one-fifth of the Austral¬

1951

$1.2

Its

growing.
Total imports went from $1.3 mil¬
in

first

av¬

about $1.5 million
goods to Canada, and buys
about $3 million of Canada's
goods

the

has been with the U. S.

and

2.5

suit¬

1950's.

most

imports

from

are

million

possibilities

dicated

cultivation, it

there

3.2

the

became

countries

yearly

than

discuss

tralia

Although Alaska has less than

leadership

China,

Alaska is—one-fifth as
all the other 48 states to¬

large as
gether.
Its population went up
nearly 65% from
1950
to
1958

annual

other
a

sells

Hawaii

ignorance

about it around the United States.

how

1958.

United

all

over

is,

Hawaii sells

the

has

the

from

up
from the
defeat 15 years
position of economic
in the Far East. For
come

Nationalist China

area.

Alaska

trade

with the United States.

climbed

moved

pub¬

achieving statehood,

lion in 1958.

cific Northwest Trade Association

there is little I

Hawaiian

of $304 million in the 194650 postwar years up to $426 mil¬

new¬

beyond to the rim

the other side of the

capita income
than that of

erage

Hawaii, the two

est states—and

Per

larger

of the

Purchases

Alaska

States.

area.

companies., It

over

the

has

million
000

clear

of military

have

Hawaii

population of

less

Japan is reaching out

relatively
putting investment capi¬
developing the resources

into

tal

financial

of course,

the

Japan
ashes

doing business in Alaska.

American

dec¬

the

President, Northern States Power Co., Min¬

D. H.

south

hood.

Harllee

credit

states.

when

Making their

Despite

two

$1,876

this

newly elected officers, the
Treasurer of the nation's trade
organization of private elective
companies is H. S. Sutton of Consolidated Edison Co. of New
York,
Inc., New York City.

tal."

other

Mr.

flow

ent

en¬

adequate and consist¬

licized

University

courage

Indonesia, rich

has

Japan

debtor

good start has been made in

United

Columbia, Alberta, and
parts of Canada,
they can
on a growing
major market

past year Chairman of the EEI General Division Executive Com¬

Mf,

Alaska

Canada and Japan.

are

British

Vice¬

Executive

countries for

stand¬

Washing¬

Montana

Alaska—will have

advanced

elected

are mostly pulp, wood
metal. Chief among the

With

Oregon,

question in

taking care
of Alaska's
credit
needs, but "the important task for

living.

count

trade

step

the total yearly production of
goods and services from the pres¬
ent
$465 billion level to about

domestic

Philip A. Fleger Elected Vice-President

the

decade

$9,550

1955.

non-U.

director of the National

member of the National

Chairman of the Connecticut Flood Recovery

mittee following the floods of
He

the

and

Association

Gas

England

Association of Manufacturers and

trial

committees,

Committee.

Executive

New

Council of New England.

member of the EEI Board of Directors

number

Division

General
dent

the

from

that

Exports
and scrap

the
next

and

drawn

period.

year

the future is to maintain and

important les¬

some

figures

utilities, joined together to construct the area's first atomic electric
power plant.
'
and

effective

most

veloped for the 1960's, lessons that
will assist in such planning.

elected Executive Vice-President.

was

Vice-President

1941

and

the

are

sons

Philip A. Fief er

made manager of the

was

that

seven

populous,

ago

move

long-range planning.

1928

graduation from Cornell Uni¬
]

women

which

companies

same

and

forward most successfully will be

Power

the

decade

expansion

greatest

Company since 1952. He joined
company

and

future. It is the major unanswered

$2.4 million to $8.4 million in the

page

will

change that America has ever ex¬
perienced.

elec¬

1960's

the
the

the

investor-owned

Connecticut

from

States

companies.
Mr. Knapp has been Presi¬

Developing World of
Trade and Investment

tric

its
gross
national
7% to $1.1 billion in

reports

economic progress.

The

In¬

June,

Northern

trade

nation's

exam¬

politically staunch ally. Mili¬
security is assisting the As¬
sociated
States, formerly IndoChina, to start on the road to

Knapp succeeds Allen S. King,
Power

for

past five years. Malaya is up
60% to about $2.2 billion annu¬
ally. Thailand is our prosperous

Co., Richmond, Virginia.

J., last June 8.

stitute

President

moving

Burma,

the

President of The Connecticut Light & Power

vention, held at Atlantic City,

> ('

Asia

product up

elected President of the Edison Electric Institute

was

Vice-President

Co.,

this

and

by its Board of Directors.
Installation of the new President was
made at the closing session of the Institute's 28th Annual Con¬

Lighting & Power

Houston

tary

>V*

;-J

•

if:

Sherman

elects

President of the organization.

President,
'
'

Wharton,

help build

country.

Southeast

A. Fleger becomes Vice-President of the Institute.

Philip

■

Electric

jfv
;yi

Thursday, June 16, 1960

economically.

Illinois.

fft

growing

Turner,

Houston, Texas.

from Europe, to

Sammis, President, Ohio Edison Co., Akron, Ohio.

Chairman and Chief Executive, Louisiana
Power & Light Co., New Orleans, La.
J. H. Ward, President, Commonwealth Edison Co., Chicago,

Elects Its New Officers

i**

■

the

them

continue

Free

China

uncertain

are

future,

whether they
their
loyalties to

because

some

these countries. Free China is

not
recognized while Communist
China is. If they cannot be cit¬
izens where they live, they must
orient
land.

themselves to
It

overseas

nied
and

orbit

would

Chinese

orientation

forced

into

their home¬

tragic

were

the

Free

the

de¬

China

Communist

for, surely, in this way the

Volume

Number

would

World

Free

191

lose

5960

Tr'~""L

only

exports

million

$1.7

her

million of exports to
a little more
half of what Canada sells to

weighing the
interesting study

trade.

with Commu¬
nist China in the Jan. 30, 1960 issue

The

was

trade

Canada's

and

Trade

seeks to encourage more

trading

major

China's

bloc

porters should exaggerate opporthemselves
in
the
for

tunities

China's

perce ntage

small

imports of consumer goods, it is
worth mentioning that the corn-

imported

the

strong enough to stand on
their own feet and trade among

only

today

enough

strong

they

but

themselves,

underdeveloped

were

categories
Canada,

made

are
or

not

either
if they

are,

ment

other

against them in the China market."
Businessmen in the United States
who

pushing

are

trade with

for

should look

China

Communist

Canada makes,
whether fho scanty
the counts

the volume of sales

decide

and

gains
I

T.ri-.0+v.or

worth the price.

are

difficulties

land,

nature
of the
will not permit

the

people

submit

them

forever

Yoke

Communism,

anything

do to

serious

are

Chinese main¬

the

that

Chinese

there

that

believe

the

will

against

ourselves.
East-West

Trade

exports by half a billion

crease

dollars

been

million

amounted

mission

and

one-third.

went

This

$12 7
loss of nearly
to

dropped

million last year—a
be

the

$18.9
Canadian
to

businessmen

Moscow

when

1958

Canada

from

Union

does

not

seem

growing trend in the face of
rising world prosperity.
Canadian exports to other Com¬
munist bloc countries appear to
a

shape, with gains
reported in Hungary, Yugoslavia,

'better

Czechoslovakia, Poland and Bul¬
garia.
The U. S. S. R. has made it clear

with the
economic

that it intends to compete
free

world

winning

in me cuiiuxik years.
the coming veais
V
While the U S. S R.
part of
e
the far Pacific rim it is doubtful

uxeinacv
supremacy

Eastern ^Siberia

that

either

will

become

aggressive competitor or

good

customer

Northwest

for
the

t«

f"%

•

our

hope to

able to

goal

opening branches, plants, buy¬

forming subsidiaries or
arranging for representation ' or
licensees in other countries.
ing

$12

billion

nually

grossed

firms

American
Amcii,au

foreign

years

ago.

went oyer $30
The day is gone

they

branches

11CW

the

East-

Far

some
.^

sales

Last

an-

year

billion,

—

headed

companies,

men

!! wil? A°Pen
Buenos

r»

/-v t rv

n n

Capital

moves

markets

3960

and

Delaware

Electronics,

has

the

under
March

entered

into

24,

con¬

to acquire, upon the com¬
pletion
of
the
offering,
as
a
wholly-owned subsidiary Esquire
Radio

combination

and

units,

phonograph

both

A further step in the Bank of export the consumer credit idea standard and high fidelity.' In adAmerica s foreign operations was to the other nations of the free dition, the company will then be
its acouisition of controlling in- world.
in the business of selling to dis1
acquisition of controlling in- world
terest in the Banca d'America e
tributors radios manufactured in
...

„

To Summarize Then:

d'ltalia, with headquarters in Milan, with over 60 branches and
agencies in
38 communities in
Italy.

Troc+

East, South
Asia,
South
America,
Central
America, and the Caribbean.
The First National City Bank
Australia,

Far

of New York operates 84 branches,
affiiiates in 28 foreign

ff-

1960's more prosperous than ever
before in its history. Most of the

accordance

with

the

company's engineering and design

specifications.
During

last

the

five

the

years

records

world—Europe,
Al1c+Miio
nca,

Japan

The world has moved into the

"in"heirecon^iclnnctivD net annual income afterj taxes of
records in their economic activi }his ,—.
,—
underdeveloped
btu!i,"e,sLh.as ranged *
from a
,f the. ff.e tles. and the underdeveloped low of $24,700 to high, for 1959,
Middle East, Af- countries are awakening to their

,x7nr1r|

and

potential for growth

and expansion. Current trends in all parts
of the world give promise to making the 1960's the Golden Decade
for most of the people, assuming
manage

tn maintain the neace

manaSe to maintain the peace

The free countnJs bordering on

.... onn
A..
, ..
of $155,800. After the completion

of the

offering, the President will
of
the
outstanding

62.2%

own

the

outstanding
and

pany

35.9%

company

will

Treasurer

own

the

public

the

and

1.9%

the

com¬

will

own

thereof.

The net proceeds from the sale
as
the £r lLde °Vhe PaClf,C IT
ar®ady " Tiwb. SLrt! would add up to aPP™ximate y of the shares is expected to be
r®La uSf
f,
one-third of the population of the
Arabia, Egypt, Union of South worid. The people are there, the used for the following purposes:
Srtfn hiwdmpnk abroad raw the markets are there. there placeapproximately $73,000 to re¬
'
"
material resources are The (a) funds used by the company
and

haAm™
of

r'j

sub-

■

*/*/

i~»w i

m r

»£«««' &
almost trebled its

investment

has

less

than

ten wars
years.

...
Direct in-

great need for the area is t0 cre.

Sie'purchasing

ami

payment

for

subordinated

to'as- notes; (b) approximately $50,000

Si?
^eg
.

„

^nfers0%Se7a/inrin Weste% ratSv'toeifd^mands
$1.7 billion satl^ty tnen aemanasy
E

am0unted

1950,

and is now estimated to
billion.

be over $5
A

big

change

has been taking

place in U. S. investment in
ern

West-

Most of the investthe
past went to one

Europe.
in

ment

iti

in /~\

the

the balance of approximately

(c)

Rich as the promise is, however,
face many tough and real
Problems in turning the promises
1960s into rea lty.

I suggest the following guidelines for developing more world

$477,000 will initially be added to

for
in¬
cluding financing of finished and
capital

working
general

material

raw
^
^
^

corporate

used

purposes,

The

inventory.

arnount of nroceeds which will be

r^uired ^

of in-

country, Britain, and was limited trade in the 1960's:
ventories will be dependent upon
1° iust a few Capital invested in
industries. Almost
(i) Explore the ways to corn- future business trends and conhalf of U. S.
world that is
Communist.
together to bring

pete peaceably in a

Britain still,
in oil, autos,

Western Europe is in

most

Pta oth®r countries. For example,
tcrms of U. S. investment pe
caF+lta' I aly h*s
getting U. S. capital faster than
other country in Europe
Even before the Common Mar-

any

ket
on

part free and part
(2)

Work

ment in

the Common Market area

increased 145% from 1950 to

1957,

place

and attractive to those who can large

ditions, and, therefore, cannot be
fixed at this time. Since a substantial portion of the company's

about closer understanding and
cooperation among the nations of
the free world.
(3) share the responsibility
am0ng the strong nations for help-

saies are usually made in the last
five months of the year, it has
been the company's experience i/i
the past that it must resort to outside sources for short-term loans
|ng the underdeveloped nations to to finance the inventory build-up
become self-supporting
necessitated by the seasonal na¬
(4) Lift our corporate industrial, ture of its business.cash position
The mainfinancial and national sights to tenance of
strong
a

world as
a
market for goods and services,
came into being, the countries
(5) Remove the barriers bethe
continent
were
gaining tween the free countries so that

;'7 -:
goods

branch in highest living in our own,Inlet us radio
standards.
their phonographs,
interest and

mJ^ingCfro^reinvested
dumping

laws

Aires, Argentina.

in in
in

said that this democratization of facturing on a contract basis for
-

and

Along with new changes
world trade are coming new concepts in international financing.
Isolationism in financing has be/>V\ nrtl
a!
1
^

the creation of consumer
the lit-

Radio

incorporated

was

when large
tan
companies can leave their inter- chemicals, and.machinery.
national divisions in the hands of
Trhe
* changmg howjunior executives. With increasing evef; and wniie tne U. K. will
frequency we see today the inter- continue to attract heavy U. S. innational divisions, or subsidiary vestment, more capital is flowing
ablest

Esquire
Inc.

Pueia ^umpar, Malaya, Hong- credit saved the free enterprise distribution by others portable
^ong, and Okinawa. The last^one system in our countries. Certainly transistor, clock and standard
opened just recently. In June it
has
brought us
the world's radios,
monaural
and
stereo-

uuiuucuucb

some
of the
management.
b

credit made it possible for

companies

Capital is a mobile commodity.

countries.
cannot

are

value common stock of Es¬
Radio & Electronics, Inc.,
$5 per share.

quire

„

as political iso-

gsssast 22?
We

and

new

of our large corporations.

many

international

China go along

the

prospectus?
&

and desires of the people for bank
obligations incurred since
a higher standard of living can be
'n
and ^einaLhlgi}ef standard of living can be Jan. 1, 1960, which obligations
world vestment—new capital ^and^rein- stimulated, and trade can bring were incurred in order to provide
world
.
,
nf:t
nf
TTr-ifpu
QfatPq stimulated,
and trade can bung necessary working capital; and

concept of American businessmen
is the rising importance of foreign
business in the total operations of

foreseeable

Russia and Red
together, however,
they will continue the process of
Communist political infiltration in
J:
long

continent, must also be taken into
account.
One of the most interesting de-

the Pacific

ture

Iumre<

agd LaUn^ica. and
'

Sea llraadULme^af well

with future trade prosoects

velopments

June

Lomasney

of a™as

naturally

around the Pacific rim, the growing
prosperity
in Europe, the

extent.

Exports

Northwest

establis.hes branches in for- cremi maae it possioie lor me 111- ttaaio Corp., a New York corcorp., a New Yor
countries During the three tie never had have buying power poration which is engaged manupast he fellow to before. It might be business of designing and in the
months it has
opened

auotas which discriminate against

Pacific

T?onniyn
XJotj[UlIt/

Co., 39
Broadway, New York 6, is offer¬
ing 150,000 shares of the 10-cent

tries.

eveZ ™aJ°r

United States goods."
While the primary interest

Association,

tract

goods by European countries. The
ionortrnpntc said similar
Quih
similar
departments

opened new avenues for U. S
exports. They said the end of 1960

Myron

witnessed the achievement of this

home

e^l^branc^office^in^rtaallly
erates orancn oiiices in virtually

quota eliminations by countries in
ether parts of the world have also

Pursuant

ada and the United States we have

credit to

the widespread removal
imPort
of import quotas on United States

fhr-oo
three

before

Olmsted

Radio Common

dustrial enterprises in other coun¬

foreign

sible by

——

Soviet

This is made pos-

year.

Sta^^been doing any of. Near East
it to
any

State, Commerce and Agriculture
declaring that American industry
now
has the opportunity to in-

starts

trading with
tire U. S. S. R. while the United
has

.....

the United States Departments of

the

Canada

tha#should see'the "virtual eliminastrengthen the tion
throughout the world of

working

ago

and

hold of the Communists over Red

China

was
vvcl„

1JUV,1U,
„

from high prices or
considerations
that
work

suffer

they

ioint stateissued ... Washington by
in

weeks

Two

too

Mr.

Canada.

v/llCIo

reach down to the little individual

local enterprise,

finance

companies

new

The rise of the regional group-

Northwest Trade

Hfforc

abroad to finance their various in¬

and

maturity.

economic

all

M. A. Lomasney

services*
of these
often do not

programs

address

Pacific

and

makes direct loans to

join

c!o
at

par

large

help the
countries reach

efforts

cooperative

and
useful
the benefits

steel mill in India,
hydro-electric power
new railroad track in

It extends commercial

also

are

they do

separate
what
from
what
we

Vancouver,

citizen. If we are really going to
build the defenses of the free
world against Communist infiltration, we must develop an economic
middle-class throughout the
world, more people "who have"
and less "who have not." In Can-

not

are

important
However,

banks to

world

free

■"An
the

governemnt level, are performing

dams

operating

home."

great public pools of capi-

grams,

(the

industrial de¬

projects such

plant and
Japan.

Cwfll

these

India,

All the industrially strong riations

Recon-

the vast new

largely; ings in Europe and other places
sugar, spices, animal and marine
around the world need not cause
products, cotton cloth, kerosene,
help make
drugs,
paper,
and medical ap¬ thes? countries
paratus. Most of the products in stronger markets for all of us.
modities

for heavy

loans

Outer Seven,

the

and

partner, accounting for about 75%
of the trading.
In listing the imports for Communist China, the study observes:
Lest Canadian producers and ex-

for

Development

and

velopment

Soviet in the Common Market in Europe,

out that the

points

study

of economic strength. Whole regions
of nations
are
grouping
together to promote self-help, as

it
trade, the
While

Commerce.

cannot

abroad

chance.

World Bank). It assumes portions

regained and, in some cases,
surpassed their former positions

Department

Canadian

the

struction

war-weakened nations

once

Bank

International

have

published

Trade"

"Foreign

,0 ■

given

any

"WOrld affairs " The President
said: "We have discovered that we

^he Pas_t 50 years. It helped to lift
?ur living standard to the highest
i° the world. It can do the same
other
countries
if
in

d.^clar®.d

for"

The Bank of America particiPates, like others, in the loans tal, such as our American Ecomade to foreign countries by the nomic Aid and Development Pro

prospects for more

■

°^erniaSi^f?r

fairs and foreign policy
country. The terms should

*nent in the United States over

the

The

ing trends in Canada and the
United States, and we have looked
westward
across
the Pacific in

alone!

There

In an address made by President

consumption and mass employ-

New York.

We have looked at the develop-

$1.7

Hawaii

found

may

communist infiltration.

Need for Consumer Credit Abroad

better able to buy our

perous and

things of life to make the world a
happier place, less vulnerable to

capital from the U. S. and
joint ventures with foreign

Financing of industrial develop-

goods,

Communist China is
than

companies,

American

big

flrmS"

international operations of the
This leads to my final point— three biggest U. S. banks—Bank
the need for a total world concept of
America,
Chase
Manhattan,
in planning for trade.
and First National City Bank of

Commonwealth countries.
This

country.

The World Concept

another $1 billion

$4 billion, plus

region

Financing by Big 3 U. S. Banks

Russian iron ore and steel.

last
year,
exports to all
the
Commoncame
to about

total
countries
except
wealth countries

however,

can,

Dollars)

(Canadian
while

that

note

Trade

world

free

place,

ment in other countries by U. S.
When we think of investment
financial institutions, corporations, m other nations around the world
iron and steel mills are of good and investors is moving forward let us include in our thinking the
quality. As these mills are ex- in a large way around the world, need to promote consumer credit
pancfed
to meet local requireAn example of this global fi- in
those countries. Consumer
ments, there would remain no nancing which, in turn, will help credit was the key that unlocked
reason
why
India should
buy make other countries more pros- the door of mass production, mass

to Communist China

from Canada

amounted

China

Red

However,

™

„

new

try.

Facts

the boundaries of

meet Communist economic infli¬
tration in some of these countries
by helping to finance and develop
the - indigenous industries.
Take
India for example, where their

for frowning
on
Canadian and British trade
with Red China, and there has
been much talk in Canada that
she needs to trade with that coun-

(2617)

invest. It need not be limited to

The

there has been criticism

of the United States

The

u:~u

at high losses.

■South East Asia.
I know

The Commercial and Financial Chronicle

break the price and force selling

much

deai with the whole free

world, and all can grow stronger,

(g)

Through

the

development

will

enable

nance

the

company

said inventory largely

instead

of through

ings

bank borrow¬

in the past.

R. K.

McQuade Opens

FlSHSil

profUs of rieh-and-poor

societies

wholly-owned subsidiaries people can have more

11-

itself

so more

of the good name of R. K. McQuade & Co.

(2618)

The Commercial and Financial Chronicle

Thursday, June 16, 1960

ADDITIONS

* INDICATES

Securities

Now

ISSUE

NEW
NOTE—Because

the

index and

the

June 17

Columbia

not, in

are

accompanying detailed

general, to be considered

Technical
Norman

Corp.

Doak

and

Elco
; '

Corp.

Corp

(S.

Cortland

Wickett & Co..

Securities,

Corp.

Fuller

Inc.)

Fuller

Common

—.

Glass

(no
par), including 25,000 shares to be issued and sold by the
company and 17,574 shares which are outstanding and
will be offered by the holders thereof. Price
To be
supplied by amendment. Proceeds—Principally for vari¬

(Arrin

Co.,

June

Cabana

for

the

account

holders

•

Alderson Research

Chemo-Vive

May 26 (letter of notification) 100,000 shares
stock (par 10 cents). Price—$3 per share.

general corporate purposes.

City, N. Y. Underwriter
New York, N. Y.

(No

and

Co.)

underwriting)

(Cyrus

(7/11-15)

Federal

Lawrence

Steel

of common

Inc.)

Co.,

Corp.

Hentz

Brook

Co.)

(H.

Friendly

Price
$5 per common share, and bonds at 100% of
principal amount. Proceeds—To purchase the outstand¬
ing shares of the Cloverdale Spring Co., and the balance

Frost

-share**!

for the general funds. Office—Guildford
Md. Underwriter—Weil & Co. of

Ave., Baltimore,

Washington, D. C.

•

Alside, Inc.

A^rij

22 filed

Chemtree

Price—To
gcLner

wnn

chares of

supplied

stock

by amendment.

auuitionai

sum

(no par).

Proceeds—To-

Office—1415 Waterloo Road, Akron, Ohio.
Underwriter—Reynolds & Co., Inc., New York.
Electronic

Coip.

(6/27- 7/1)

May 19 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
For

general

corporate

Office

purposes.

—

Street, New York, N. Y. Underwriter—Palombi
Co., New York, N. Y.

The company proposes to offer these
securities for
lic sale in units
consisting of two shares of stock
25 cents) and one warrant.
Price—$6.25 per unit.

price of

(Bear,

Lasco

initial

installment

the

two

For
and

(par

purchase
furniture

Co.)

Co.,

(American

Securities,

Inc.)

Safticraft

Sullivan

100,000 shares

Inc.)

50,000

..Common

(George,

O'Neill

Sea-Highways,

Talcott

(James),

(Pearson,

Co.

Tri-Point

Co.,

Inc.)

debt

reduction.

Office

—

1725

West

Calif. Underwriter—Shields

American

Sixth

Weld

White,

Weld

Co.)

150,000

Co.)

700,000

York

Life

Insurance

fileu 200,000 shares of
capital stock. Price—$8
share. Proceeds — To increase capital and
surplus.
Office—1455 Union
Ave., Memphis, Tenn. UnderwriterUnion Securities Investment
Co., also of Memphis, which
will receive a selling commission
of $1.20 per share.

Electrada

American

(Goldman,

—4851

36th

Ave.,

Miami,

Fla.

Continued

page

(City of)

(Kuhn,

Loeb

Co.)

150,000

Uranium

Co.;

and

(A. C.

Co.

Globus,

Inc.)

$700,000

Globus,

and

Inc.)

70,000

Co.,

Inc.

and

35,000

Bonds

—

EDT)

noon

Inc.)

Globus,

$17,000,000

.Common
shares

and

Debentures

—.

Bear,

Stearns

$1,500,000

Co.)

Co.

and

Amos

Sudler

Common

Treat

Co.,

Co.)

$1,500,000

.———-Common

Inc.)

$2,000,000

Industries, Inc

Co.

(Offering

Common

Seskis

Hamilton,

and

Common

Wohlstetter)

Magnus

Brothers)

Townsend,

$500,000

-Common
Co.,

Inc.)

$5G1,000

Debentures

$50,000,000

Common

Crouter

stockholders—no

Obear-Nester
(Merrill

Bonds

Lynch,

Oxford
•

.Common

& Bdrtine)

50,709

(W.

Glass
Pierce,

underwriting)

$1,119,510

Common

Fenner

Smith,

Inc.)

210,045

Manufacturing Co., Inc.——..

Langley &

Co.

and

Common

Courts

Polycast Corp.

Co.)

Common

240,000 shores

..Debentures

(M. L. Lee & Co., Inc.

and

Milton

Elauner

Co.,

Blauner

Co.,

Inc.)

$400,000

Aid, Inc.

Common
Co.)

and

Nebraska Consolidated Mills Co.__.J-

Allyn & Co., Inc.) $1,232,848 50

$544,810

Navigation Computer Corp

Harriman

Witter

Co.)

of America

(Wednesday)

(Dean

Co.)

128,329 shares

Co._

Richter

Motor Products, Inc.——'

(Drexel

Ripley & Co.; Lazard
Smith, Barney & Co.) $10,000,000

Reduction

Scherck,

Common
&

Inc.

Utilities

(Godfrey,

Norway
&

Freres & Co.

June

Underwriters

•

Sachs

•

Warrants

Common

National Old Line Life Insurance Co
Oslo

(6/27-7/1)
April 13 filed 400,000 shares of common stock (par
25c).
Price—To be supplied by amendment.
Proceeds—For
general Corporate purposes and working capital. Office

Interstate Finance Corp

(Equitable Securities Com.)

International Aluminum Corp.

and

Inc.

.Common
400,000 shares

100,000

Common

Co.,

(Lehman

(Bache & Co.)

Inc.)

Montgomery Ward Credit Corp

300,000 shares

Corp

per

Offering—Imminent.

& Smith,

Common

(Amos

Common

—

Lamtex

Lee

Inc.)

310,000,000

Illinois Beef, L. & W. S., Inc

Co.)

(Tuesday)

(Reynolds & Co.,

Co.

$600,000

Debentures

(Purvis

Alside, Inc.
Frontier

Co.)

Inc

Co.,

(Finkle,

June 21

$300,000

Cosco, Inc.

(Bache

$300,000

by Schweickart &

Inc.)

I C Inc.

Common
Inc.)

Common

Inc.)

Fenner

Lyon

Hotel Corp.

$20,000,000

Inc

Hindley & Co.,

Common

Common
Co.,

300,000

Notes

and

$100,000

Associates,

& Co.,

States

St., Los

Co., New

Common
Co.)

(Smith, Barney & Co., Inc. and City Securities Corp.)

—Common

White,

$237,500

Inc.)

Corp.

Hamilton

$300,000

Inc

Plastics,

(Martinelli,

...Common

Common

Lomasney

(Bids

and

Co.

Gulf

$300,000

Inc..

—

Lyon

Goelet

$825,000

Corp

Murphy

(James),
&

Associates)

120,000

Common

Sullivan

(Ross,

Instrument

Eberstadt

Inc.)

Common

Maher

Service

Co.,

Inc

(John

Eberstadt

Corp. ',

(Ross,

Corp.

(Offering to stockholders—underwritten

including construction

Ccburn

Lynch, Pierce,

Goelet

Waltham Precision Instrument
Co., Inc.—Common

purposes

Co.)

Goelet Corp.

general

corporate

(Harrison

Common
Common

Co.,

$300,000

General Atronics Corp

$300,000

Welders, Inc.—

Corp.)

Company,

International,

(Bosworth,

$160,000

Common

Diversified

(Bosworth,

(F.

Gem

(Ross,

OK Rubber

(P.

Corp

(Merrill

Movielab Film Laboratories, Inc

Talcott

Garrett

$300,000

Inc.)

Peabody

(Blair

Inc

$262,750

Franklin Corp.

..Common

Securities

Homes,

Corp.)

Accumulation

150,000

Monowall

—-Units

—

Inc.) $300,000

Electronics, Inc

$300,000

Service, Inc
(General

Common

Securities

(Myron A.

Common

(Edward H. Stern & Co.)

Mister

$297,000

Co.)

Figurette, Ltd.

.—.Common

Co.)

Magaril

(Sutro^ros. & Co.) 80,000 shares

(J.

..Common
Henderson

Espey Mfg. & Electronics Corp
Federated

$376,000

212,500

...Common

Corp

(Courts

Units

Inc.)

Equitable Leasing Corp.

$2,000,000

1960, filed 300,000 shares of common stock (par
Price—To be supplied by amendment.
Proceeds—

Nov. 30

•

Martin-Parry Marine Corp..

Pro¬

fixtures

Angeles,
City.
•

Co.,

and

Inc.

(Sandkuhl

Class A

Products, Inc

Stearns

(Holton,

June 13,

$1).

Hough,

Edwards Engineering Corp

.Debentures

Industries

pub¬

additional. bowling centers; for
thereon; and the balance to be added to
working capital and be available for general
corporate
purposes. Office—400 38th
St., Union City, N. J. Under¬
writer—Hill, Thompson & Co., Inc., New York.
• American Electronics, Inc. (7/18-22)
and

180,000

Securities, Inc.)

(Granbery, Marache & Co.)

American Bowla-Bowla
Corp. (6/27-7/1)
April 15 filed 100,000 shares of common stock and war¬
rants for the purchase of an additional
50,000 shares,

cover

Morton

Vitamin

Hudson

18th
Secu¬

rities

ceeds—To

Common

(Kidder,

Hampshire Gardens Associates
(B.

Beil

Inc.—.—.

Battery

(Capital

underwriting) 110,000 shares

dealers.

Ameco

Hilton

and

Co.

Edgerton, Germeshausen & Grier, Inc.---Common

Common

Realty Corp

Rogers Co.

(No
common

$6,000,000 to be bor¬
rowed for institutional
lenders, will be used to provide
consumer
financing for the company's products by pur¬
chasing consumer paper from the company's distributors
and

Great American

—_—Common

Corp.

150,000

Curtis)

Debentures
Inc.) $1,600,000

Inc

(Havener

$1,125,000

$126,600

Compressed Concrete Construction Corp.—Common

..Common

Jackson

Co.)

and Beil & Hough,

Company,

Corp

Webber,

(Louis L.

Co.)

underwriting)

Drive-in

(Paine,

Industry, Inc..-Common

Gray

(Willis E. Burnside & Co.,

apw.VtM.*

Great American Realty Corp

(6/21)

3ft0.ono

General

Hentz

150,000

Inc

(No

—

Co.)

Common
shares

(Darius, Inc.) $150,000

First National Realty & Construction
Corp.__War.

Cellomatic

Pfd.

Allegheny Pepsi Cola Bottling Co.
June 9, 1960, filed 200,000
shares of common stock and
$500,000 of first mortgage bonds, due 1963 through 1972.

Hentz

Walker

(Sandhuhl

First National Realty & Construction
Corp.__Com.
(H.

——Common

100,000

for

Homes,,

$295,000

150.000

.Common

Co.)

(Richard

Labs. .Co.,

400,000

C. F. C. Funding Inc.—

Common
Co.)

200,000

1,000,000
&

Corp._Common

Smyth)

Homes, Inc

Shell
(G.

...

(G. H. Walker & Co.

Bevis

Debentures

First National Realty & Construction
Corp.
(H.

Bevis Shell

Common

Cathers

$312,500

Inc. and A. C. Allyn & Co., Inc.)

Cafeterias

$290,000

and Brawley,
$6,000,000

Weeks)

Gas

(Keller

Automatic

$2,200,000

Sons

(Westheimer
.

Western

$150,000

■

Units

—

Bullard &

Filor,

(Snow, Sweeney & Co.,

Common

Corp
Aluminum

50,000

$3,290,000

$300,000

Atlas Bowling Centers, Inc

Common

Corp.)

42,574 shares

.Common

Bowla

and

Inc.)

Co.,

Thompson & Co., Inc.)

(Hornblower

Capital

Patterson

Co.

Arkansas

Jeffrey-Robert

Farrington Manufacturing Co

Proceeds—For

Morris

American Rubber & Plastics Corp..

Common

Fairmount Finance Corp
(J.

Murch

Corp.-

Bowla

$300,000

Development Credit Corp. of Maryland

and

American

(Hardy

Cohon & Co.,

—

Electronic

and

American International

$500,000

Inc

Investing

$9,600

—Common

Rothschild & Co.

$287,500

Processes,

(McDonnell

.Common

—

Lincoln)

Co.

(Monday)

(Hill,

Continental Capital Corp

Office—48-14 33rd St., Long

Island

(L.

$300,000

Inc.)

Corp.

will

Co., Chicago and

Laboratories, Inc.

Common

Corp.)

125,000 will be issued and sold by the company. Price—
To be supplied by amendment. Proceeds—For
additional
working capital. Office—7045 North Western Ave., Chi¬
cago, 111. Underwriter—Dean Witter &
New York.

Inc.)

Associates)

Securities

Co,

Trust

(Palombi Securities Co.)

(Mandell & Kahn,

(par $1),

thereof

Robert

Chemical Packaging Co., Inc

(General

the

and

$300,000

Pools, Inc.—

Aid, Inc.

offered

Co.

Inc.)

Conv. Debentures

(Mainland

.——Debentures

Inc

Airport Parking Co

Common

Cass

—

and

Kirsch

Securities,

(Quincy

face value. Proceeds—For mining expenses. Address—
Juneau, Alaska.
Underwriter
Stauffer Investment
Service, 1206 N. W. 46th Street, Oklahoma City, Okla.

stock

Investment

June 27

$300,000

Birtcher Corp.

Price—At

outstanding

Ramo

(Monday)
(Hilton

Inc., Cleveland, Ohio.
Empire Gold Mining Co.
(letter of notification) $300,000 of 6% income

(Friday)

(First

A. K. Electric Corp...

leasehold improvements. Office—1308
Prospect Ave.,
& Co.,
New York, and Murch & Co.,

Cleveland, Ohio. Underwriters—L. F. Rothschild

common

Common

___Debentures

Corp.)

Associates,

Sweeney

Snow,

$12,000,000

(Offering to stockholders—underwritten by The
First Boston Corp) $8,300,000

Ameco

ous

(6/22)
April 28 filed 335,880 shares of
of
which
210,880
shares
are

$300,000

Securities

Inc.;

Martin

—

multiples of $100 each.

and

Inc.

Co.,

Miles Laboratories,
'

Fibers Corp

(Hancock

stock

———Debentures

Gas

Allyn &

$1,000,000

Co.)

DeDentures

(Simmons, Rubin & Co., Inc.)

(6/27-7/1)
common

Units
120,000

(Thursday)

June 24

Republic Graphics Inc

McGowen

Fulitr

(A.

Inc

Co.,..Inc.)

•

i
D.

Southern Union

82,065

Co.)

Corp.
(S.

June

..Common

Ripley & Co., Inc.)

(Harriman

Warrants

•
Airport Parking Co. of America
April 27 filed 42,574 shares of class A

$2,010,000

Day)

Properties,

$300,000

—

(S.

Elco

Wallace

Investing

$300,000

87,809

Medallion Pictures Corp..

•

Co. and Tucker, Anthony
750,000 shares
<.

..Common

Inc.)

Co.)

• A. K. Electric
Corp. (6/20-24)
May 4 (letter of notification) 100,000 shares of common
stock (par one cent). Price—$3 per share. Proceeds—
For general corporate purposes. Office—231 Front
St.,
Brooklyn, N. Y. Underwriter—Hilton Securities, Inc.,
580 Fifth Ave., New York, N. Y.

Loeb

Common
Inc.;

Co.,

—i.—ji—J—____

Elco

notes to be offered in

Inc.)

(Kuhn,

Co., Inc.——

(Ross

April 12

Common

Inc

Co.,

O'Neill

(George,

Harvey Aluminum, Inc..

Pharmacal

firm

offering dates.

Alaska

REVISED

ITEMS

Bruce National Enterprises,

CALENDAR

(Friday)

.(Diran,

items reflect the expectations of the underwriter
but

•

the

large number of issues
awaiting processing by the SEC, it is becoming
increasingly difficult to predict offering dates
with a high degree of accuracy. The dates shown
in

Registration

ISSUE

SINCE

335,880

Polycast Corp.
(M.

Lee

Common

———

Co.,

Inc. and Milton
20,000

Inc.)

Volume

Pyramid

191

Electric
(No

Reeves

Number 5S60

The

Commercial and Financial Chronicle

Common

underwriting)

(Laird

Rosauer's Super

&, Co.

Saucon

Corp.)

Michael

!•'

Plan

July 6
Common

plan

Co.,

Inc.)

Portfolios,

Plan

Portfolios,

Inc.)

Co.,

Inc.)

(Offering

(Marron,

■

Sloss

Co.,

(Richard

July 7

Whitmoyer

Co.,

Common

•

Laboratories,

(Hallowell,

Sulzberger,

Whitmoyer Laboratories,

(Hallowell,

Co.)

Laclede

(Michael

(Lehman

$500,000

Co.)

EDT)

a.m.

EDT)

a.m.

Union

Debentures

Securities &

Co.)

Inc.;

Merrill

Lynch,

Pierce,

Common
Fenner

(11:00

Co.)

July 11

(Tuesday)

(Offering

-•

Iron

Securities

Ore

Alderson

Debentures

stockholders—underwritten

Webster

Liberian

Corp.)

Stone

(Eids

Northwest

Natural

Aviation

(Ross,

(Sterling,

Tampa Electric Co
(Bids

Brockway

m.)

Company

Bonds

Western
•

(Bids to

"■

(Auchiuclcss,
to

invited)

—Bonds

162,000

First

Inc.;

Co.,

(Auchincloss,

Common
(No underwriting)

Parker

Glass

(R.

Holman

Co.,

July

(Tuesday)
t

American

Sterilizer

......Common

(Glore, Forgan & Co. and Fulton, Reid & Co., Inc.)

(Michael

Kletz

Co., Inc.)

Co.)'

75,000

(William R.

■

(Drexel

Common

(Coffin

Burr,

(First Eoston Corp.

Control

Data

Inc.)

27,000

Co.)

(William

$50,000,000

125,000

Fennekohl

July 14

Class A

Co.,

Inc.)

and

Co.)

Inc.)

Cohon

Gas

$450,000

(11:00 a.

Co.)

Common

October 4

$400,000

—Bonds

CDST)

October 6

Cohon

(First

Kenrich

Co.

and

Schrijver

Co.)

Philadelphia

/ n '

(First

Philadelphia

Co.

stockholders—underwritten

and

Piper,

Jaffray

October

(Offering

•

(The First

Continued jrom page 46

Co.)

Shearson,

Hopwood)

561,500

(Ross,

Cubic

(Shields & Co.)

filed

120,000 shares of

•

Football Team of

common

stock

(par $1).

To be supplied by amendment. Proceeds — For
improvement of the Boston University Field, and the
balance to pay organization expenses and for working
capital.
Office — 522 Commonwealth Avenue, Boston,
—

Underwriters—Estabrook

Co.

and

Mose-

ley & Co. both of Boston, Mass.; and Tucker, Anthony
& R. L. Day and White, Weld & Co. both of New York
City. Offering—Expected sometime in July.
••
J
American Mortgage Investment Corp.
April 29 filed $1,800,000 of 4% 20-year collateral

trust

and

1,566,000 shares of class A non-voting com¬
mon stock.
It is proposed that these securities will be
offered for public sale in units (2,000) known as In¬
vestment Certificates, each representing $900 of bonds
and 783 shares of stock. Price—$1,800 per unit. Proceeds
—To be;, used principally tp originate mortgage loans and
carry them until market conditions are favorable for
disposition. Office — 210 Center St., Little Rock, Ark.

Underwriter—Amico, Inc.

Bonds

$12,000,000

Bonds

(Tuesday)
to

Lyon

Co.,

Inc.

and

Globus,

Inc.)

Penn

filed

the

Stone

Life

Co.)

Insurance

registration of

Co.

127,500 shares of capital

offering will be on the basis of nine shares for each
held, and all unsold shares of this block will
offered under warrants granted in accordance with
Agent's

company's

Stock

Option

Plan.

Price—$28

share. Proceeds — To increase capital and surplus.
Office—203 S. 15th St., Philadelphia, Pa.
Underwriter—
None.

American

Rubber &

Plastics Corp.

(6/27-7/1)

May 11 filed 200,000 shares of common stock. Price —
To be supplied by amendment.
Proceeds—To selling
stockholders.
Office — La Porte, Ind. Underwriter —
Hornblower & Weeks, New York City.
American
Jan.

filed

St.

Lawrence

Seaway Land Co.

538,000 shares of common stock, of which

Price—$3 per
share. Proceeds—To pay off mortgages, develop and im¬
prove
properties, and acquire additional real estate.
Office—60 E. 42nd St., New York City. Underwriter—
A. J. Gabriel Co., Inc., New York City.
350,000 shares

are

$30,000,000

invited)

-Bonds
$16,000,000

Bonds

—

invited)

$25,000,000

Bonds
be

tnvited»

si2.ooo.ooo

to be publicly offered.

(Tuesday)

(Bids to

per

•

Northern States Power Co.

50,000

the

December 6

$616,000

——Capital

pire on July 11 at 3:30 p.m. (EDST). Subscription rate on
105,000 shares of the stock will be three additional shares
for each one share held.
Of the remaining 22,500 shares
14

invited)

(Thursday)

'Bids

(par $10) being offered for subscription by stock¬
of record on April 28, 1960 with rights to ex¬

stock

Units

Corp.

American
30

-Debentures

Georgia Power Co

300,000 shares

holders

League Professional
Boston, Inc.

bonds

(Hayden,

York.

Mass.

Common

—

Astrotherm Corp.

American

Time)

Florida Power Corp

123,808 shares

Hammill

Hardy & Co. and Filor, Bullard & Smyth, both of New

Price

•

Ladenburg,

;

N. Y.

November 3'(Thursday)

American Electronics, Inc

217,278

underwriting) $65,000,000

(Bids

March

June

Corp.)

(Monday)

July 18

Common
&

Boston

$175,000

stockholders—Underwritten

Thalmann

——Common

——

$192,500

Namm-Loeser's Inc.
-

Midwest Technical Development Corp.—-Common
(Offering to

(Tuesday)

(Thursday)

October 20
1

Debentures

Corp.)

Bonds

$50,000,000

(Friday)

July 15
Basic, Inc.

Common

Corp.)

$10,000,000

invited)

Louisville Gas & Electric

216,645 shares

$500,000

Inc.—

Petrochemicals, Inc

invited)

(Bids

Capital
Co.)

i/1

(Tuesday)

$30,000,000

(Thursday)

.Common

Gas Trunk Line
(No

(Offering to stockholders—underwritten by Dean Witter

Common

Petrochemicals,

Debentures*

$17,000,000

Indianapolis Power & Light Co.

(Bids
(Morris

September 27

$10,000,000

Co._

Co—
invited)

(Tuesday)

(Bids to be

90,000 shares

Itemco, Inc
Kenrich

Public Service Electric & Gas Co

Associates

Varian

660,000 shares

Common
&

Columbia Gas System, Inc

General Sales Corp
"B.

Co.

1,000,000

(Reynolds & Co.)

•

250,000

Bonds

Debentures

Crow

(Bids 10:00

Common

Futterman Corp.

Co.)

(Wednesday)

Northern Illinois

Faultless Caster Corp

--Bonds

(Wednesday)

Light

(Bids

Alberta

Common

Debentures

$35,000,000

(Tuesday)

September 20

—Capital

Wheeler Fibre Glass Boat Corp

July 13

Co.—

invited)

Utah Power & Light Co.

—

Co.)

&
(Bids

-Common

(Morris

Debentures

$100,000,000

$10,000,000

Bache

Co.;

R. Staats

(Pistell,

—

(Laird, Bissell & Meeds) $300,000

(Hayden, Stone &

Power

$51,000

Sav-A-Stop, Inc.

Common
&

E. S. C. Electronics Corp
vl

Utah

Debentures

Pauley Petroleum Inc

—Notes

and Kidder, Peabody & Co.)

Witter

EDT)

Corp

(Dean

Staats

Hammill

Shearson,

/.Buzzards Bay Gas Co.—.....Common
Commercial Credit

EDT)

September 14

Metropolitan Development Corp

140,000 shares

Associated Testing Laboratories, Inc
y

(Bids to be Invited) $25,000,000

-Bonds

11:00

50,000

Virginia Electric & Power Co

Units

Common
&

a.m.

September 13

500,000

68,000

Inc.)

Co.,

Southern California Edison Co

Common

Co.,

Netherlands

Common
&

Telephone

Common

150,000

Laclede Gas Co.-^_

150,000 shs.

Electronics, Inc.

and

$1,200,000

(Bids to be invited) $60,000,000

Holman

(Bids

Arco

...

(R.

Common
Inc.

Inc.)

(Tuesday)

(Bids

Co.,

Michigan Bell

—-Units

Tfi f

Glass Magic Boats, Inc

Co.) $800,000

(11

$500,000

Redpath)

Inc.)

Inc.; Reich & Co.;
Godfrey, Hamilton, Magnus

August 23

Magic Boats, Inc.—

134,739 shares

Units

Globus,

City

Drug Co., Inc

Parker

.share3

Bonds

(Tuesday)

$325,000

Redpath)

Common
1,140,000

Southwestern Bell Telephone Co

Common

Inc.)

underwriting)

and

Holman

August 2

$300,000

Bros.)

Drug Fair-Community

$10,000,000

Dalto Corp.

Inc.)

Drug Fair-Community Drug Co., Inc._

(Friday)
(Bids

Co.,

Inc.)

Murphy

(Bertner

July 1

Co.,

Consolidated Research & Mfg. Corp

$3,700,000

Central Illinois Electric & Gas Co

$38,101,600

Corp.—-

Corp.
(R.

Common
&

$1,250,000

Inc.;

Winston

.Common

Christy

(Pearson,

—Equip. Trust Ctfs.

Pearson

$5,000,000

Inc

Blyth

invited) $22,000,000

Co.

Securities

Common

___

Co.)

Conetta Manufacturing Co., Inc

invited)

Common

—_

(Vickers,

$25,000,000

(Wednesday)

Maryland RR._

Inc

Common

EDT)

—

Co.,

Shore

Capital

(J.

Development & Construction

Securities,

June 29

Grace

Co.,

Brothers

Commonwealth

60,000 shares

11:00

Glass

(Lehman

Preferred

(Lehman Brothers)

Laboratories,

$330,000

(Monday)

Lyon

Harold

National

Employees Corp.—

Units

—

Gas

Research

-Debentures

Inc.)

Kings Electronics Co., Inc

16,000 shares

(Monday)

(White, Weld & Co., Inc.) 30,000 units

Co.,

Inc

Debentures

Common

$350,000

Southern Counties Gas Co.:

(Morris Cohon & Co.) $300,000

$6,657,900

Ltd

a.m.

stockholders

August 1

...

stockholders—underwritten

Putnam

Common

Inc.)

(Tuesday)

$24,000,000

and Reinholdt & Gardner)
stockholders—243,600 shares

New Britain Gas Light Co

Bausch & Lomb Inc

Co.,

Products, Inc

Holman

June 28

Consumers Power Co

(Offering

Brothers;

(Offering

Bonds

$5,000,000

(Myron A. Lomasney & Co.)

July 26

$5,000,000

-1

Offering to

$450,000

$150,000

Products, Inc

Gulf-Tex Development,

$5,000,000

Smith,

Class A

Kletz

EDT)

a.m.

Holman

(R.

(Friday)

Gas

Co.)

(Monday)

(R.

$510,000

..Common

Industries, Inc

Deluxe Aluminum

Bonds

(Eastman Dillon,

(Equity Securities Co.) $242,670

Win-Chek

Bonds

Preferred

(11:00

Debentures
&

System, Inc.

July

Dillon,

a.m.EDT) $3,500,000

(11:00

July 8

^Common

Corp.T

Lyon

El Paso Natural Gas Co.

Co.)

Inc

Sulzberger, Jenks, Kirkland

Wilier Color Television

Eastman

Mississippi River Fuel Corp

..Common

Kirkland

Ross,

$255,000

(Tuesday)

130,063 shares

$700,000

Inc.—

Jenks,

Co.)

Gulf Power Co

Common

Inc.)

Jersey Power & Light Co

(Thursday)

■'

$1,250,000

Inc.)

Gulf Power Co

.Common

and

Deluxe Aluminum

175,000 shares

Corp

Bruce

Securities

10:30

(Hardy & Hardy and First Southeastern Co.)
145,000 shares

United States Boat

stockholders—underwritten

Union

Co.,

..Common

Triumph Storecrafters Corp.—.

Preferred

Inc.)

New

$50,000,000

Sierra Pacific Power Co

Swimming Pool Development Co., Inc
'

July 19
Bonds

EDT)

Development

(Globus, Inc.

Co\, Inc

Holman

(11:00

$225,000

4,500

National, Patent

(Wednesday)

Papercraft Corp.

Common
Treat

Custom Craft Marine
(R.

Common

Lomasney' & Co.) $650,000

(11:00

$900,000

Inc
(Amos

$360,000

Illinois Bell Telephone Co

unknown

Normandy Isle, Inc

(Sire

Stelma,

(Myron A.

Normandy Isle, Inc.——.Debentures

(Sire

Common
&

Common
Corp.)

—Preferred

number

(Marron, Sloss

Packaging Corp

Trans Tech Systems, Inc.——

$294,000

Electric Corp...

Sire Plan

Com,

$2,336,950

Marshall)

Co.)

(2619)

(First Securities

Development Corp.!

(P.

National

$291,443.75

Markets, Inc

(Foster

Sire

Broadcasting & Development Corp

Sierra

invited)

(Minn.)

Bonds

$35,000,000

American Stereophonic Corp.
April 11 (letter of notification) 50,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—
For general corporate purposes. Office—17 W. 60th St.,
New York, N. Y. Underwriter—D. H. Victor & Co., Inc.,
New York, N. Y. Offering—Imminent.
American Sterilizer Co.

(7/5-8)

150,000 shares of common stock (par
$3.33V3). Price—To be supplied by amendment. Proceeds
May

filed

—Of
the
net proceeds
from the sale, approximately
$600,000 will be available to AMSCO Laboratories, Inc.,
a wholly-owned
subsidiary, as an additional advance for
the completion of a new manufacturing plant. The bal¬
ance
will be used to reduce short-term bank borrow¬

ings and for additional working capital. Underwriters—

Glore, Forgan & Co., New York and Fulton, Reid & Co.,
Inc., Cleveland, Ohio.
Arco

Electronics,

Inc.

(7/5-8)

140,000 shares of class A common stock.
Price
To be supplied by amendment.
Proceeds —
$350,000 for general corporate purposes and the balance

May

filed

—

for

working

capital.

Office—New York City. Under¬
Co., Inc., New York City.

writer—Michael G. Kletz &

Continued

page-

The Commercial and Financial Chronicle

(2620)

Underwriter—Stone

Continued from page 47

Corp.,

Securities

Webster

New

Co.

Farms

Arden

preferred stock, and 149,511 shares of common stock. The
debentures are to be offered for public sale at 100% of
their principal amount.

The company proposes to offer
preferred
shares
and
common
shares
initially
through subscription warrants. The holders of outstand¬
ing preferred stock will be entitled to purchase the new
preferred at the rate of one new share for each ten
the

held.

one

stockholders

Common

will

share for each ten shares held.

new

entitled

additional common shares at the rate of

purchase the

The record date

Homes,

Shell

Bevis

(6/27-7/1),

Inc.

....

$1,600,000 of 9% subordinated sinking
fund debentures due 1985 and 1,000,000 shares of com¬
March

filed

units (200,000), at $15.50 per unit, each unit to consist of five com¬
mon shares, one $8 par debenture, and warrants for the
purchase of two additional units of one common share
and one $8 debenture at $9.50 per unit. Proceeds—$2,000,000 will be used to increase the company's holdings
of mortgages placed on the shell homes it sells; and $1,600,000 to be used to increase its holding of mortgages
will be placed in escrow for that purpose; and the bal¬
stock, to b.e offered for public sale in

mon

for

ance

corporate

general

Office—Tampa,

purposes.

is to be the effective date of the registration statements.
Office—1900 West Slauson Ave., Los Angeles, Calif.

Fla.

Underwriters—G. H. Walker & Co., New York

and

Beil

ic Arkansas Valley Industries, Inc.

managers.

June

9, 1960, filed $600,0000 of 6% convertible subordin¬
debentures and 30,000 shares of com¬
stock, $3 par. $200,000 of the debentures will be
issued to Arkansas Valley
Feed Mills, Inc.; the re¬
mainder of the registration will be publicly offered. Price
—To be supplied by amendment. Proceeds — To retire
current bank loans and increase working capital. Office
ated sinking fund

mon

•

St. Louis, Mo.
Western

Arkansas

May

Co.

Gas

(6/27-7/1)

filed 50,000 shares of common stock (par $5).
be supplied by amendment.
Proceeds—To¬

Price—To

$1,500,000 to be received from a contem¬
plated private placement of debentures, will be used
to retire some $1,000,000 of term bank notes and to de¬
fray all or a portion of the cost of the company's antici¬
pated 1960 program of property additions and improve¬
ments.
Office — 28 East Center St., Fayetteville, Ark.
Underwriters—Snow, Sweeney & Co. Incorporated, New
gether with

Arnoux Corp.
May 23 filed 133,000 shares of common stock. Price—
To be supplied by amendment. Proceeds — For general
corporate purposes and working capital. Office—11924
W. Washington Blvd., Los Angeles, Calif. Underwriter—
Shearson, Hammill & Co., New York. Offering — Ex¬

pected sometime in July.

Testing Laboratories, Inc. (7/5-8)
May 25 filed 75,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—To retire $100,000 of short-term bank loans, to provide
additional facilities and equipment for plants at Wayne,
N. J., and Winter Park, Fla., and the balance will be
added

to working capital.
Office—Clinton Road, Cald¬
well, N. J. Underwriter—Drexel & Co., New York and
Philadelphia.

filed

Corp. (7/18-22)
$308,000 of 8% subordinated convertible

debentures,

due July 1970, 154,000 shares of common
stock, and 46,200 common stock purchase warrants. The
company proposes to offer these securities in units, each
unit to consist of $100 of

principal amount of debentures,
shares, and 15 warrants exercisable initially
at $2 per share. Price—$200 per unit. Proceeds—To re¬
pay loans, purchase new equipment and the balance for
working capital. Office—Indianapolis, Ind. Underwriters
50

common

—Ross, Lyon
Shore

Co.,

Globus, Inc., and Harold C.

Inc.,

Co., all of New York City.

Bowling Centers, Inc. (6/27)
May 2 filed 100,000 shares of class A common stock (par
10 cents). Price—To be supplied by amendment.
Pro¬
ceeds
For additional working capital. Office — 255
Huntington Avenue, Boston, Mass. Uhderw?riter—Keller
& Co., Boston, Mass.
—

Cafeterias

for

Industry.

Inc.

(letter of notification) 42,200 shares of common
stock (par 10 cents).
Price—$3 per share. ^Proceeds—
For general corporate purposes.
Office—Dover, County
Kent,

Del.

York, N.

Underwriter

—

Richard

Gray

Co.,

New

Proceeds—To

a new

equipping

invested

Proceeds—Together with other funds, will be
in
the
shares of the company's three
sub¬

sidiaries; for general corporate purposes; and the re¬
maining balance will be used from time to time for
the purchase of all or a substantial interest in or the
formation
the

business

one

other

insurance

companies engaged

finance

further

sup¬

plement the funds of the three subsidiaries. Office—930
Tower Bldg., Washington, D. C. Underwriters—G. J. Mit¬
chell

Jr.

Co., Washington, D. C., has withdrawn as un¬
New underwriter is Sterling, Grace & Co.,

derwriter.

New York City.

All shares result from conversion of convertible prefer¬
ence shares placed in 1958.
Price—Related to the cur¬

market

price
offering.

the American

Stock

Exchange at
time of
Proceeds— To selling stockholders.
Office—845 Hanna Building, Cleveland, Ohio.
Under¬
writer—The First Boston Corp., New York.
Bausch

Lcmb

Inc.

from

It is proposed that these debentures

will be offered for subscription by common stockholders

the rate

of $100

principal amount of debentures for

each 13 common shares held. Price—To be supplied by
amendment. Proceeds—About $5,000,000 will be used to
construct new facilities in Rochester and the balance

will
.

used

purposes.

for

Office

working
—

capital

arid

other

Underwriters

Pa.

Brockway,

•

—

Lehman Brothers

and

Brook Labs.

Co., Inc.

(6/27-7/1)

(letter of notification) 108,000 shares of common
stock (par 10 cents) of which 28,000 shares are being
sold for selling stockholders. Price — $2.75 per share.
Proceeds—For general corporate purposes. Office—650
May 31

Place, Brooklyn 16, N. Y. Underwriters—Sand-

Lincoln
&

Inc., New York City and Newark,
Co., 37 Wall St., New York, N. Y.

Company,

N. J. and J. J. Magaril
Bruce

National

Enterprises, Inc.

Utica Avenue,

Office—1118 N. E. 3rd Avenue, Miami,
Underwriter — George O'Neill &
Inc., New

purposes.

Fla.
York.

Hyannis, Mass. (7/5)
outstanding shares of common stock,
offered for sale by American Business Associates.
To be supplied by amendment. Underwriter—

Buzzards Bay Gas Co.,
filed 27,000

June 7
to

Price

Inc., Boston, Mass.

Byer-Rolnick Hat Corp.
May 9 filed 100,000 outstanding shares of common stock.
To be supplied by amendment. Proceeds — To

Price

—

selling stockholders. Office—601 Marion Drive, Garland,
Tex. Underwriters — Dallas Rupe & Son, Inc., Dallas,
Blosser & McDowell, Chicago, 111.
Note—This offering has temporarily been postponed.
and

Straus,

C. Funding Inc. (6/27)
(letter of notification) 75,000 shares of common
stock (par 10 cents), Price—$2, per share. Proceeds—For
general corporate purposes. Office—90 Broad St., New
York 4, N. Y. Underwriter—Darius Inc., New York, N. Y.

May 6

Cabana

Pools,

Inc.

(6/20-24)

—

Kahn,

Inc., Time-Life
York, N. Y.

Building,

Center,

Rockefeller

Capital Shares Inc., San Francisco, Calif.
May 3 filed 1,100,000 shares of common stock. Price—

Proceeds—To increase capital 'and surplus
and for working capital.
Underwriter—None.

$1 per share.

CeJcmatic Battery Corp.

(6/27-7/1)
May 20 (letter of notification) $270,000 of 6% guaran¬
teed 5-year convertible notes and 6,000 shares of com¬
mon stock
(par 10 cents) to be offered in units consist¬
ing of a $90 note and two shares of common stock. Price
—$100 per unit. Proceeds—For working capital. Office—
300 Delaware St., Archibald, Pa. Underwriter—Willis E.
Burnside &

Co., Inc., New York, N. Y.
Electric

Illinois

& Gas Co.

and

Hicksville, L. I., N. Y.
Chemo-Vive Processes,

(6/20-24)

Inc.

April 22 (letter of notification) 75,000 shares of class A
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—To purchase machinery and equipment and the
balance
for working capital.
Office — 609-11 Fourth

Underwriter

Juniata, Altoona, Pa.

Avenue,

Investing Corp., New York, N.

—

General

Corp.
(6/27-7/1)
(letter of notification) 262,750 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For general corporate purposes.
Office—100 W. 10th
Chemtree

April 19

Street, Wilmington 99, Del. Underwriter—Havener
curities Corp., New York, N. Y.

Se¬

Circle-The-Sights, Inc.
165,000 shares of common stock and $330,(10-year 8% redeemable). Price—For

March 30 filed

000 of debentures

stock, $1 per share; debentures in units of $1,000 at their
principal amount. Proceeds—For initiating sight-seeing
service. Office—Washington, D. C.
Underwriter—None.
Line Co., Ltd.
shares of common stock. Price—At
the market, at time of offering. Proceeds—For general
corporate purposes. Office—1410 Stanley St., Montreal,
Canada. Underwriter—Michael Fieldman, New York.
Cold

Feb.

•

Lake

Pipe

filed 200,000

Columbia Technical Corp.

(6/17)
100,000 shares of common
(par 10 cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office — 61-02 31st Ave.,
Woodside, L. I., N. Y. Underwriters—Diran, Norman &
Co., Inc., V. S. Wickett & Co., Inc., and Cortlandt In¬
vesting Corp., New York, N. Y.
May 6 (letter of notification)
stock

ic Commercial Credit Co.

(7/5-8)

1960, filed $50,000,000 of senior notes, due July 1,
1979. Price—To be supplied by amendment. Proceeds—
For working capital. Office—300 St. Paul Place, Balti¬
June 9,

more,

and Kid¬
(managing the books), both of New

Md. Underwriters—First Boston Corp.

Commonwealth

Development & Construction Co.

(7/11-15)

May 24 (letter of notification) 60,000 shares of common
stock (par five cents).
Price—$5 per share. Proceeds—
working capital. Office—11th & Main Sts., Pennsburg, Pa. Underwriters—Vickers, Christy & Co., Inc., 15
William St., New York, N. Y. and First City Securities,
For

Inc., New York, N. Y.
Compressed

Concrete

Construction Corp.

(6/27-7/1)

for present and contemplated con¬
the company and to provide for
some $5,000,000 of bank loans incurred
or
to be incurred for such purposes.
Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc., Kidder, Peabody & Co. Inc.
funds

struction

required

program

May 9 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office — 313 W. Jericho

Turnpike, Huntington, L. I., N. Y. Underwriter—Cap¬
ital Accumulation Corp., Franklin National Bank Bldg.,
Roosevelt Field, Garden City, N. Y.
Conetta

Manufacturing Co., Inc.

the payment of

(7/11-15)

June 3 filed 125,000 shares of class A common stock

(par
Proceeds—For general
corporate purposes including the reduction of indebted¬
ness, the purchase of machinery and equipment, and for
working capital. Office—73 Sunnyside Ave., Stamford,
10

cents).

Price—$4

Conn. Underwriter
York

—

per

share.

Pearson, Murphy & Co., Inc., New

City.
&

Chesapeake, Inc.
April 29 filed $585,000 of 4V2% promissory notes and
2,250 shares of common stock. It is proposed to offer
these securities for

public sale in units, each consisting
one share of stock, provided that
purchase shall be 10 units for a minimum
consideration of $3,600 ($2,600 of notes and 10 shares of
stock). Price—$360 per unit. Proceeds—For repayment
of certain advances made to the company. Office—724of

$260 of notes and

the minimum

14th

Street,

W.,

Washington,

Underwriter—■

Shannon & Luchs Securities Corp.

Consolidated Realty Investment Corp.

April 27 filed 2,000,000 shares of common stock. Price—
$1 per share. Proceeds—To establish a $250,000 revolving
fund for initial and intermediate financing of the con¬
struction of custom or pre-fabricated type residential or
commercial buildings and facilities upon properties to
be acquired for sub-division and shopping center devel¬
opments; the balance of the proceeds will be added to
working capital. Office—1321 Lincoln Ave., Little Rock,
Ark.

(7/1)

filed

$10,000,000 of first mortgage bonds series
due 1990. Proceeds—To be used to provide a portion of
the

Underwriters—Mainland

Franklin Street, Hempstead, N.
Jeffrey-Robert Corp., 382 S. Oyster Bay Road,

Connecticut

(letter of notification) 150,000 shares of com¬
mon stock (par 10 cents).
Price—$2 per share. Proceeds
For general corporate purposes.
Office — 640 Fifth
Avenue, New York, N. Y. Underwriter — Mandell &
March

June

Brooklyn, N. Y.

—

Coffin & Burr,

(6/20)

Inc.

Securities Corp., 156 N.

der, Peabody & Co.
York City.

(6/22)

property; for working capital and other corpo¬

certain

•

Chemical Packaging Co.,

(letter of notification) 115,000 shares of com¬
mon stock
(par 10 cents). Price—$2.50 per share. Pro¬
ceeds—For general corporate purposes.
Office —755

April 29 filed 335,000 shares of common stock (par 10
cents).
Price—$6 per share. Proceeds—For reduction
of outstanding indebtedness; to pay off mortgages,,on
rate

Thursday, June 16, 1960

Underwriter—The Huntley Corp., Little Rock, Ark.

Consolidated

Research &

Manufacturing Corp.

(7/11-15)

May 27 filed 50,000 shares of class A and 50,000 shares
of class B stock (par 10 cents).
The company proposes
to offer these shares in

units of

Price—$6.50

Proceeds—For

unit.

one

share of each class.

corporate

St. Paul Street, Rochester, N. Y.

and

equipment, sales
expansion, increased advertising and marketing program
budget, and working capital and general expansion. Of¬
fice—1184 Chapel Street, New
Haven, Conn.
Under¬

ated,

(6/28-7/13)

May 19 filed $6,657,900 of convertible subordinated de¬
bentures due 1980.

estimated at $5,-

The balance of the cost of the plant will be paid
the company's funds.
Office—1200 Wood Street,

750,000.

Central

Basic, Inc. (7/15)
May 26 filed 123,808 outstanding shares of common
stock, of which 81,161 shares are institutionally held.

rent

glass container plant at Rosemount,

Minn., near St. Paul and Minneapolis,

New

Aviation Employees Corporation (7/11-15)
Feb. 8 filed 2,500,000 shares of common stock. Price—$2

share.

Price—To be supplied by amendment.
applied toward the cost of building

company.

and

•

per

130,000 shares are to be offered by the

thereof and

ers

issuing

•

(6/27-7/1)

May 31

(7/11-15)

Brockway Glass Co., Inc.

May 19 filed 162,000 shares of common stock (par $5),
of which 32,000 shares are now outstanding and are
to
be
offered
for public
sale by the present hold¬

Texas

Atlas

Automatic

subordinated

of 6% convertible

debentures, due April 30, 1975. Price—At par. Proceeds
—To
pay
bank loans incurred to augment working
capital.
Office — Los Angeles, Calif. Underwriter —
Quincy Cass Associates, Los Angeles, Calif.

kuhl

Associated

May

(6/20)

Corp.

filed $500,000

City

Hough, Inc. of St. Petersburg, Fla., as co-

Blyth & Co., Inc., both of New York.

York, and A. C. Allyn & Co.,, Inc., Chicago, 111.

Astrotherm

Birtcher

March

—Dardanelle, Ark. Underwriter—A. G. Edwards & Sons,

March 16

York.

May 13 filed $4,000,000 - of 6% subordinate debentures,
series due July 1, 1990 (convertible), 44,278 shares of

•

writer—Bertner

White, Weld & Co. (jointly); Blair & Co. Incorpor¬
Merrill Lynch, Pierce, Fenner & Smith Inc. and
Stone & Webster Securities Corp. (jointly).
Bids—Ex¬
pected to be received on July 1.
Certified Credit & Thrift
Jan.

and

250,000

filed

Corp.

250,000 shares of class A stock
shares

offered in units of

—$20.20 per unit.

one

class

stock

(20c

($10 par)

par),

share of each class of stock. Price

Proceeds—To pay mortgages. Office
—Columbus, Ohio. Underwriter—CommnrMVealth Secu¬
rities Corp:, Columbus. Offering—Imminent.

per

Bros., New York.

Constellation

Life

Insurance

Co.

March 29 filed 1,350,000 shares of common stock, of which

350,000 shares will be reserved for stock options, 150,000
will
be offered to holders of
the outstanding

on
a
"first-come-first-served" basis at $3.25
share, and 850,000 shares will be publicly offered.
Price—$3.50 per share.
Proceeds—To
general
funds.

common

per

Office

—

Norfolk, Va.

Underwriter

Ayres, Inc., Richmond. Va.

—

Willis, Kenny &

Volume

191

Number, 5960

^-Consumers Power Co.

„

The Commercial and Financial Chronicle

(7/26)

June

15, 1960, filed $38,101,600 of convertible debentures,
due 1975, to be offered for subscription by holders of
record July 26, at the rate of $100 of debentures for each

25 shares of stock then held with rights to
expire on
Aug. 12. Price—100% of principal amount. Proceeds—For
the company's construction program. Underwriter—To be

determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; First
Boston Corp. and
Harriman Ripley & Co.
(jointly);
Kuhn, Loeb & Co. and Ladenburg, Thalmann & Co.
(jointly). Bids—Expected to be received on July 26 at
11:00 a.m. (New York Time)
•

Continental! Capital Corp.
(6/20-24)
,
April 19 filed 235,000 shares of capital stock (par $10).
Price—$14 per share. Proceeds—For investment in small
business concerns, and to the extent
necessary may use a

portion

thereof

retire

its

outstanding

subordinated

debenture in the amount of $150,000 held by the Small
Business
Administration.
Office — L20
Montgomery

Street,
nell
•

San

Francisco,

Calif.

Underwriter —McDon¬

Co., Inc., New York.

Control

(2621)

Diversified Realty Investment Co.
April 26 filed 250,000 shares of common stock. Price—
$5 per share (par 50 cents). Proceeds — For additional
working capital. Office—919 18th Street, N. W., Wash¬

Doak

Pharmacal, Inc. (6/17-24)
(letter of notification) 100,000 shares of com¬
mon stock
(par 10 cents). Price—$3 per share. Proceeds
—For general corporate purposes. Office—99 Park Ave¬
nue, New York, N. Y. Underwriter—Ross Securities, Inc.,
99 Wall Street, New York 5, N. Y.

Electrada
March

April 28

June

500,000

Inc.I

Underwriter—Bache
Electronic

Specialty Co.
150,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—To be added to the general funds in
anticipation of
capital requirements, possibly to include acquisitions.
June

loans

and

the

balance

working capital and general corporate

used

for

Office
Underwriter—

purposes.

filed

Office—5121

San

Fernando

Road,

Los

Calif.

Angeles,

Underwriters—Reynolds & Co., Inc., of New York, and
Bateman, Eichler & Co. of Los Angeles, Calif. Offering
—Expected in early August.

(7/11-15)

•

Equitable Leasing Corp. (6/27-7/1)
May 9 (letter of notification) 50,000 shares of common
stock (no par). Price—$2 per share. Proceeds—For work¬

A, $1

of bank

Office—9744 Wilshire Blvd., Beverly Hills, Calif.
& Co., New York.

poses.

10, 1960, filed $500,000 of subordinated sinking
debentures, due Sept. 15, 1975, with attached war¬

fund

Corp. (6/21)
400,000 shares of common stock.
supplied by amendment. Proceeds—For
debt reduction, and other corporate pur¬

filed
be

acquisitions,

Asbury Park, N. J. Offering—Imminent.

Corp. (7/5-8)
June 2 filed 125,000 shares of common stock.
Price—
To be supplied by amendment. Proceeds—To
repay $1,-

Price—To

Drug Associates, Inc.
May 6 (letter of notification)-100 units of $100,000 of 7%
sinking fund debenture bonds and 10,000 shares of com¬
mon stock
(par $1) to be offered in units consisting of
one $1,000
debenture and 100 shares of common stock.
Price—$1,100 per unit. Proceeds—For general corporate
purposes. Office—1238 Corlies Ave., Neptune, N. J. Un¬
derwriter—Fidelity ' Securities & Investment Co., Inc.,
^ Drug Fair-Community Drug Co.,

Data

100% .of principal amount plus accrued interest from
May 15, 1960. Proceeds—For retirement of the company's
indebtedness to The First Pennsylvania Banking & Trust
Co., and for the purchase of machinery and equipment.
Location—"M" Street below Erie Avenue, Philadelphia,
Pa. Underwriter—S. D. Fuller &
Co., New York.

ington, D. C. Underwriter—Ball, Pablo & Co., Washing¬
ton, D. C.
•

rants for the purchase of 25,000 shares of common stock

ing capital. Office—246 Charlotte St., Asheville,
Underwriter—Courts & Co., Atlanta, Ga.

par, and 150,000 additional shares of said stock.
These debentures and warrants will be offered in units

N. C.

Proceeds—Of the stock

—501

Park

Avenue, Minneapolis, Minn.
Minneapolis, Minn, and New York

Dean Witter & Co. of

City.

Cosmopolitan Insurance Co.
(letter of notification) 58,000 shares of capital
stock (Par $1). Price — $5 per share. Proceeds — For
general corporate purposes.
Office—4620 N. Sheridan
Road, Chicago, 111. - Underwriter—Link, Gorman, Peck
& Co., Chicago, 111.

March 30

Espey Mfg. & Electronics Corp. (6/27-7/1)
April 29 filed 80,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes.
Office—Saratoga Springs,

consisting

$500

debenture

D. C.

Underwriter—A. J.

Street,

W., Washington,
Gabriel Co., Inc., New York.

• Cubic Corp. (7/18-22)
June 8,
1960, filed 50,000 shares of capital stock, of
which 25,000 shares are being offered for the account*of
the company, and 25,000 shares for the account of sell¬
ing stockholders. Price—At-the-market at time of offer¬

ing. Proceeds—For additional working capital. Office—
5575 Kearney Villa Road, San Diego
11, Calif. Under¬

writer—Hayden, Stone & Co., New York City.
•

Custom Craft Marine Co.,

Inc. (7/18-22)
(letter of notification) 85,000 shares of com¬
stock (par 25 cents). Price—$3 per share. Proceeds

March
mon

—For

general corporate purposes. Office—1700 Niagara
Street, Buffalo, N. Y. Underwriter—R. A. Holman & Co.,

Inc., New York, N. Y.
Dalto

(7/1)
134,739 shares of common stock, to be
offered for subscription by holders of such stock of
record May 2 at the rate of one new share for each
two shares then held. Price—To be supplied by amend¬
March

ment.

Corp.

filed

Proceeds—For the retirement

tional working capital.
writer—None.

notes

and

Office—Norwood, N. J.

addi¬

Under¬

Drug Corp.
March 30 filed 200,000 shares of class A common stock,
of which 170,000 shares are to be offered for public sale
on behalf of the.
issuing company and 30,000 shares, be¬
ing outstanding stock, on behalf of the present holders
thereof.

Price—$5

per

share. Proceeds—For repayment

of corporate indebtedness and for

working capital. Office

—5458 Third St., N. E.,

Washington, D. C. Underwriter—
Hodgdon & Co., Washington, D. C. Offering—Expected
sometime

June.

Deluxe Aluminum

Products,

Inc.

(7/25-29)

Oct. 15 filed $330,000 of convertible debentures, and 70,000 shares of common stock. Price—For the
debentures,
100%

principal amount; for the stock, $5 per share.
10,000 shares of the common stock, to

Proceeds—From

the present holders thereof; from

the rest of the offer¬
ing, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St., Miami, Fla.
Underwriter— R. A. Holman & Co., Inc.

Underwriter—To be supplied by amendment.
•

Development Credit Corp. of Maryland
(6/20-24)

March 29 filed 2,000,000 shares of common

stock. Price
—$1.10 per share. Proceeds — For general corporate
purposes. Office—22 Light St., Baltimore, Md. Under¬
writer—None.
Diversified Communities,

Inc.

Sept. 25 filed 367,200 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For ac¬
quisition of Hope Homes, Inc., Browntown Water Co. and
Cantor & Goldman Builders, Inc., with the balance to
be used as working capital.
Office—29A Sayre Woods

Underwriter

—

William

Staats

Bros.

Co.,

York.

New

(6/20-24)

(letter of notification) 58,000 shares of class A
stock (par $5). Price—At par ($5 per share).
working capital.
Office—5715 Sheriff
Road, Fairmount Heights, Md. Underwriter—J. T. Pat¬
terson & Co., Inc., 40 Exchange Place, New York, N. Y.
•

Family Fund Life Insurance Co.
30 filed 116,800 shares of common stock, being
offered for subscription by stockholders at the rate of

March

($100 principal amount)
one

Sutro

Proceeds—For

one

unit of 50 bonds at

share for each 5

new

shares held of record

June

with

rights to expire on June 17 at 3:30 p.m. EDT. Price
—$9 per share; unsubscribed shares at $10.25 per share.
Proceeds—To increase capital and surplus and expand
the business. Office—1515 Spring St., N.
W., Atlanta, Ga.
Underwriter—J.

Hilsman

Note—This statement

was

Co.,

Inc.,

Atlanta, Ga.

effective June 6.

Farmers'

Educational & Cooperative
} '
Union of America
>'
March 29 filed $2,500,000 of registered debentures, series

Dymo Industries, Inc.
I
April 11 filed 150,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds—Ap¬
proximately $200,000 of the proceeds from the sale of the
stock will be used for the purchase and installation of
machinery and equipment in a new plant which the com¬
pany is presently negotiating to lease; $400,000 will be
used for the acquisition of tools, dies, jigs and fixtures;
$100,000 for leasehold improvements; and the balance for
working capital. Office—2546 Tenth St., Berkeley, Calif.

D, maturing from 1969 to 1980. Price—To be offered
in units of $100. Proceeds—To pay notes maturing be¬
fore Dec. 31, 1963, with $1,107,000 to be contributed to
surplus

loaned to subsidiaries.

Office—Denver, Colo.

Underwriter—None.

Farrington Manufacturing Co.
March

filed

$6,000,000

debentures due 1970.

(6/20-24)

subordinated

Price—To

ment.

convertible

supplied by amend¬
applied to the pay¬

Proceeds—$2,000,000 to be
loans; $2,800,000 to the scanner program
1960, including (a) $1,000,000 for expenditures by
Farrington
Electronics,
Inc.,
a
newly-formed
date
processing subsidiary, for inventory, 250,000. to pur¬
chase and test equipment for producting scanners and
$250,000 as working capital; and (b) $1,300,000 for re¬
search and development. Office—77 A St., Needham,
Mass. Underwriters—Cyrus J. Lawrence & Sons, New
York City; and Brawley, Cathers & Co.. Toronto, On¬
tario, Canada.

Co., Los Angeles.

ment

California.

of bank

•

Dynamic

Films, Inc.
(letter of notification) 100,000 shares of com¬
(par 10 cents). Price—$3 per share. Proceeds
—For general
corporate purposes.
Office — 405 Park
Avenue, New York, N. Y. Underwriter—Morris Cohon
March 29

mon

stock

New York, N. Y. Offering—Imminent.

•

Dynatron Electronics Corp.
April 29 (letter of notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For general corporate purposes.
Office—178 Herricks
Road, Mineola, N. Y. Underwriter—General Securities

• Faultless Caster
Corp. (7/5-8)
May 13 filed 250,000 shares of common stock (par $1),
of which 200,000 shares are to be offered for the account
of the present holders thereof and 50,000 shares are to

Co., Inc., New York, N. Y. Note—The underwriter states
that
•

this statement

Electronics

withdrawn.

Corp.

be offered for the account of the

issuing company. Price
supplied by amendment. Proceeds—$300,000 will
be used to purchase new presses and other production
equipment and the remainder will be used as working
capital. Office—1421 North Garvin St., Evansville, Ind.

(7/5-8)

—To be

May 17 (letter of notification) 75,000 shares of common
stock (par 10 cents).
Price—$4 per share. Proceeds—
general corporate purposes.
Office — 534 Bergen
Boulevard, Palisades Park, N. J. Underwriter—Laird,
For

Bissell &

Meeds, New York, N. Y.

Underwriter

it Eddie Senz, Make-Up Artist to the Stars, Inc.
7 (letter of notification) 198,000 shares of class A
common
stock (par one cent).
Price—$1.50 per-share.

Proceeds
Room

—

For

general

corporate

purposes.

200, 160 Broadway, New York, N. Y.

Office

—

Underwriter

—None.

Edgerton, Germeshausen & Grier,

—

Hayden, Stone & Co., New York City

(managing).
•

June

Federal

Steel Corp.
(6/20-24)
(letter of notification) 59,000 shares of common stock (no par). Price—$5 per share. Proceeds—For
an expansion program.
Office—3327 Elkton Ave., Dayton
3, Ohio. Underwriter—Westheimer & Co., Cincinnati,

March 30

Ohio.

Inc.

(6/27-7/1)

May 5 filed 120,000 shares of common stock (par $1) of
which 20,000 shares are now outstanding and are to be
offered for public sale by the holders thereof and 100,-

•

Federated Electronics, Inc.
(6/27-7/1)
April 25 (letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For general corporate purposes.
Office—139-14 Ja¬
maica Avenue, Jamaica, N. Y.
Underwriter—J. B. Co-

000 shares

burn

•

are to be offered by the company. Price—To
supplied by amendment. Proceeds—For general cor¬
porate purposes. Office — 160 Brookline Ave., Boston,
Mass. Underwriter—Kidder, Peabody & Co., New York.

• Edwards
Engineering Corp. (6/27-7/1)
April 8 filed 85,000 shares of common stock of which
70,000 shares are to be offered for the account of the
issuing company and 15,000 shares, representing out¬
standing stock, are to be offered for the account of the
present holders thereof. Price—$3.50 per share.
Pro¬
ceeds—For general corporate purposes including sal¬
aries, sales promotion, moving expenses, and research
and development work.
Office—715 Camp Street, New
Orleans, La. Underwriter—Sandkuhl & Company, Inc.,
New York City and Newark, N. J*

•

Elco

Associates, Inc., New York, N. Y.

Figurette, Ltd. (6/27-7/1)
March 3 filed 100,000 shares of class A common stock,
(par 50 cents) Price—$6 per share. Proceeds—For gen¬
eral corporate purposes. Office—514 N. E. 79th Street,
Miami, Fla. Underwriter—Myron A. Lomasney & Co.,
New York.

Finger Lakes Racing Association, Inc.
Dec.

28 filed $4,500,000
of 20-year 6% subordinated
sinking fund debentures due 1980 and 450,000 shares of

class A stock (par $5) to be offered in units, each con¬
sisting of $100 of debentures and 10 shares of class A
stock. Price—$155 per unit. Proceeds—For purchase of
land and the cost of construction of
as

racing plant

other organizational and miscellaneous

Corp. (6/17)
April 22 filed $1,000,000 of 6% convertible subordinated

fice—142

expenses.

well
Of¬

ing—Delayed.

Shopping Center, Madison Township, P. O. Parlin, N. J.
Corp., New York.
Offer¬

debentures due

Underwriter—Lee Higginson

chase

ing—Postponed.

served

bond

stock

—

common

principal amount plus accrued interest. Price—To be
supplied by amendment. Proceeds—For additional plant
and equipment and to provide working capital to com¬
mence and maintain production.
Office — 414 Pioneer
Bldg.y St. Paul, Minn. Underwriters—Irving J. Rice &
Co., Inc.; St. Paul, Minn, and M. H. Bishop & Co., Min¬
neapolis,, Minn.

Detroit Tractor,

Ltd.
May 26 filed 1,375,000 shares of class A stock. Of this
stock, 1,125,000 shares are to be offered for the com¬
pany's account and the remaining 250,000 shares are to
be offered for sale by the holders thereof. Price—Not to
exceed $3 per share.
Proceeds—To be applied to the
purchase of machine tools, payment of $95,000 of notes
and accounts payable, and for general corporate pur¬
poses. Office—1221 E. Keating Avenue, Muskegon, Mich.

one

Underwriter

May 6

Durox of Minnesota, Inc.
April 11 filed $650,000 of 7% first mortgage bonds and
120,000 shares of common stock (par $1). The offering
common

Fairmount Finance Co.

Redpath, Washington, D. C.

& Co.,

Dart

the

working capital and, together with
other funds, will be used to repay indebtedness and to
open 15 new stores in 1960-61. Office—1200 South Eads
St., Arlington, Va. Underwriter—Auchincloss, Parker &

and 20 shares of

fa¬

for

added to the issuer's

will be made in units of

new

warrant

issue, the proceeds from the sale
50,000 shares will go to selling stockholders. The pro¬
from the remainder of the registration will be

general corporate purposes and construction of
Office —1737

ceeds

Country Club Corp. of America
April 29 filed 200,000 shares of common stock (par 10
cents). Price—$3 per.share. Proceeds—For repayment
of outstanding debt, including payment of mortgages,
taxes, notes, and miscellaneous accounts payable; for
cilities.

and

purchase of 25 shares of stock. Price—$500 per unit, with
the price of the stock to be supplied by amendment.

May 15, 1975, 82,065 common stock pur¬
warrants, and 87,809 shares of common stock re¬
against the exercise of the warrants.
Price—

Pierrepont Street, Brooklyn, N. Y. Underwriter

—Stroud & Co,. Inc., New York and Philadelphia. Offer¬

Continued

page

I*'
'*■

•

The Commercial and Financial Chronicle

(2622)

Mi (#

•

Continued from page 49,

■£M

National

First

Realty & Construction Corp.

!|;j

proposed that these securities will be offered in units,
each unit consisting of one share of preferred and one
share of common. Price—To be supplied by amendment.

officer and director of the company and a

repayment of

<■'

tion of

■

•

portion of bank notes; and the balance

Florida

Builders,

•

M
i'I
I'V

share.

# Florida Capital Corp.
June 9,

finance

cerns,

the

issuer's

investments

which will be
Office

electronics.

engaged
1201

small

land

business

con¬

development

Harvey

Florida

Home

Insurance

I'll.

fered

common

shares held.

liJ]'

Unsubscribed shares will be offered to

Office

N. J.

Biscayne

Blvd.,

Miami,

ment.

im
hV;

Fla.

.1:
h

—

iiu

ment

are

fl-

if
jl'

Garrett Corp.

',}■

!;••

Gem

.if,;'
vv:
'

.:n

Falls, Texas.

M.'f
^V•,}

■

Avenue, New York. Underwriters—Ross, Lyon
Co., Inc. and Globus, Inc., both of New York.
•

it#1

and

April 8

locations.

Office—418

D;
if

—

EDT

Realty Corp. (6/20)
7% convertible

$2,000,000 of

debentures

debentures, Louis L. Rogers Co., 15 William St.,
York City and Hilton Securities, Inc., 580 5th
Ave.,
York City.'
' .-l
-vU;

New

Greenbelt Consumer Services, Inc.
April 28 filed 40,000 shares of series A
and
per

of bank
of

common

stock

160,000 shares of series B common stock. Price—$10
Proceeds—$400,000 will be used in payment

share.

loans made in January to finance the purchase

equipment for two

supermarkets which are plan¬
ned to be opened in May and June, 1960. Approximately
$200,000 will be used for the purchase of inventory for
the

two

new

stores.

ing four additional

new

The

contemplates open¬
within the next two

company

supermarkets

and one-half years.

Approximately $1,200,000 of the pro¬
ceeds of the offering will be used to finance the pur¬
chase of equipment and inventory for such stores.
The
balance of approximately $182,000 will be added to
gen¬
eral working capital. Office—10501 Rhode Island
Ave.,
Beltsville, Md. Underwriter—None. Offering—Expected
in July.
Gross

Furnace

Manufacturing Co., Inc.
March 30 (letter of notification) 120,000 shares of
mon

stock

Proceeds

(par

cents).

Price

—

$2.50

per

Guardian
June 3

com¬

share.

For

200,000

Central Trust,

Inc.

filed

484,862 shares of common stock, of which
shares are to be publicly offered, and the re¬

maining shares

are

•

the

Hanover

Gulf-Tex

for

June

11:00

a.m.

Bank.

Development, Inc.

(7/25-29)

March 30 filed 250,000 shares of common stock. Price—

;

$5 per share. Proceeds—For purchase of Pelican Island;
for improvements on said property; and for
working
capital and other general corporate purposes, including
the general development of the property. Office—714
Rosenberg St., Galveston, Tex. Underwriter—Myron A.

Lomasney & Co., New York.
Hamilton Cosco, Inc.
(6/27-7/1)
May 11 filed 300,000 shares of common stock. Price —
To be supplied by amendment. Proceeds—To members
of the Hamilton family
(company founders), selling
stockholders. Office
Columbus, Ind. Underwriters —
Smith Barney & Co. Inc.,* New York
City, and City
Securities Corp., Indianapolis, will co-manage the
group.
—

•

Hampshire Gardens Associates (6/20-24)
April 1 filed $376,000 of Limited Partnership Interests,
to be offered in units. Price—$500 per unit. Proceeds—
For purchase of the fee title to a garden
type apartment
community (Hampshire Gardens) consisting of 14 build¬
ings with a total of 134 apartments in Chillum, Md. Of¬
fice—375 Park
Morton &

Avenue, New York. Underwriter—B. C.
Company, Inc., New York.

Harvey Aluminum, Inc. (6/22)
April 21 filed 750,000 shares, of class A common stock
(par $1). Price—To be supplied by amendment". Proceeds
—For expansion and working capital.
Office—Torrance,
Calif.

Underwriters—Kuhn, Loeb & Co. and Tucker, An¬
thony & R. L. Day, both of New York City.
Hotel Corp. of America

(6/27-7/1)
$1,500,000 of convertible collateral trust
due July 1, 1972, secured by the common
stock of the company that
operates the Hotel Mayflower
in Washington, D. C. and of Fred Fear &
Co, Price—To
be supplied by amendment.
Proceeds
For expansion
May

filed

debentures,

—

Office—New York City, Underwriters—Bache
& Co. and Bear, Stearns &
Co., both of New York.

program.

Hudson Vitamin Products, Inc.
15 filed 212,500 outstanding

April
stock

(par

$1).

(6/20-24)

shares of common
supplied by amendment.
stockholders. Office—89 Seventh

Price—To be

Proceeds—To

selling
Ave., New York. Underwriter

—

Bear,

Co.,

Stearns &

New York.

advertising, equipment and working
capital. Office—c/o Joseph J. Gross, 2411 Sunnybrook
Road, Richmond, Va. Underwriter—Maryland Securities
Co., Inc., Baltimore, Md.
—

Bros.

July 5, 1960 at 3:30 p.m.
Time, at the office of The Chase Manhattan

Meeting—Scheduled

—For

subsidiary to en¬
Honden, Ltd., Honla

new

filed

July 1, 1975, together with 110,000 shares of out¬
standing class A stock. Price—For debentures, at 100%
of principal amount. Proceeds—For additional working
capital. Office—15 William St., New York. Underwriter

to the Honolulu

establish

Great American

due

(6/27-7/1)

Empire Building, Denver, Colo.
Underwriters
Bosworth, Sullivan & Co., Inc., Denver, Colo.; and Scherck,
Richter Co., St. Louis, Mo.

filed

son

purchase the assets of
Ltd., and Dacat, Ltd., which now hold the basic leases
on
the store building;
$105,000 for advance to Gem
Stores, Inc., and Gem of St. Louis, Inc., to enable those
corporations to,repay loans; and the balance for general
corporate purposes and as needed to expand existing

facilities
0«sas'

Eastman

Salomon

(EDT) at 70 Broadway, Room A, New York City. Infor¬
mation

com¬

15, 1965), to be offered in units consisting of $100 of
debentures, 10 common shares, and five warrants. Price
—$143 per unit. Proceeds—To be applied toward the
company's general business activities. Office—292 Madi¬

working capital. Office—123
I., N. Y. Underwriter—None.

one

and

White, Weld & Co. (jointly); Salomon Bros. & Hutzler
and Eastman Dillon, Union Securities & Co.
(jointly).
Bids—Expected to be received on June 27 at 12 noon

chase warrants (exercisable at $4.30 per share until May

open, furnish and equip the new Wichita store
being
built for the company
by others; $75,000 to open, furnish and equip the second store in St.
Louis, similarly

able

Corp. (6/27-7/1)
$700,000 of 8% subordinated Installment
debentures, due in March, 1970, 70,000 shares of com¬
mon stock (10 cents par) and
35,000 common stock pur¬

company;

*£*

are

Goelet

March

(6/27-7/1)

$208,000 for advance

the class A and common shares
consisting of two class A and

Incorporated;

Co.

corporate purposes. Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc. and

of¬

Office—Humboldt, Iowa. Underwriters—Leason
Co., Inc., Chicago, 111.; William B. Robinson & Co.,
Corsicana, Texas; and Bala William & Co., Wichita

being built by others; $128,600 to purchase the assets of
Embee, Inc., and Garrol, Inc., who now hold the basic
lease on the premises used
by the Kansas City operating
company and who sublease the premises to that

Co.,

(jointly);

determined

Proceeds—$125,000 to

i/fi'V

The class A stock is to

ah'd: for other

boats.

Mar. 29 filed 150,000 shares common
stock (par $1). Price
—To be supplied by
amendment.

Ii-!'

stock.

Ripley

Securities

provide funds for construction purposes, and the balance
will be used to carry forward the construction
program

Price—$5.25 per unit. Proceeds—To develop the
riecessary production facilities to produce the company's

the

International, Inc.

Price—Of.

stock.

mon.

iMay 5 filed 100,000 shares of common stock
(par $2).
Price—To be supplied by amendment.
Proceeds—To re¬
duce presently
outstanding indebtedness. Office—9851
Sepulveda Blvd., Los Angeles, Calif. Underwriter—Mer¬
rill Lynch,
Pierce, Fenner & Smith Inc., New York.

common

share; and

Futterman Corp.
(7/5-8)
April 1 filed 660,000 shares of class A stock. Price—To
be supplied by amendment.
Proceeds—For acquisition
of properties. Office—580 Fifth
Avenue, New York. Underwriter-^Reynolds & Co., New York,*.* r.«

common

offered in units

Hempstead Turnpike, Franklin
Underwriter—Blair & Co. Incorpo¬

gram, and the balance for
-Frost Street, Westbury, L.

fered at $2.25 per share and the common at 75 cents per

company's Employees' Stock
Option Plan. Price—$7.50 per share. Proceeds—For re¬
payment of bank loans, for company's expansion pro¬

Union

Gulf States Utilities Co.
(6/27)
May 25 filed $17,000,000 of first mortgage bonds, series
due 1990.
Proceeds—To pay some $15,000,000 of shortterm notes issued under revolving credit agreements to

common

Marine

shares of

9 2 5

reserved for

into

improvements and

1960.

Industries, Inc.
April 25 filed 200,000 shares of class A stock and 100,000

Friendly Frost, Inc. (6/20-24)
April 5 filed 150,000 shares common stock (par 10c). An
additional 96,500 shares included in the registration state¬

:T%<:

convertible

and

Bank, Room 238, 43 Exchange Place, New York City.
Bids—Expected to be received at the office of Southern
Services, Inc., Room 1600, 250 Park Avenue, New York
17, N. Y., before 11 a.m., New York Time on July 7,

per

and

Glass

•

.' <v

Office

are

Harriman

New York

Street, Fort Worth, Texas. Underwriter—R. A. Holman
& Co., Inc., New York, N. Y. Note—The name has been
changed from Glass Magic, Inc.

(6/27-7/1)

Square, New York.
rated, New York.

Debentures

$1.50

additions

mation Meeting—Scheduled for

Magic Boats, Inc. (7/11-15)
(letter of notification) $51,000 of six-year 6%%
debentures to be.offered in denominations

each.

property

Equitable Securities; Corp.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Infor¬

debentures, at par; of stock, $102 per unit. Proceeds—
To pay off current accounts payable; purchase of Yaw
materials
and
for
expansion.
Office — 2730 Ludelle

April 26 filed 1,000,000 shares of common stock (par
value $1). Price—$10 per share. Proceeds—For invest¬

U'
!•('

!>'

$51

for

used

Hutzler

share. Also, 68,000 shares of common
stock (par 10 cents) to be offered in units of one $51

Offering—Expected in mid-July.

Franklin Corp.

em¬

Underwriter—D. F. Bernheimer & Co.,
Inc., New

York City.

1335

—

Discount Center;

convertible

Foto-Video Electronics Corp.
«
April 26 filed 125,000 shares of class B stock. Price—
$4 per share. Proceeds—$100,000 for research and de¬
velopment, $200,000 for working capital, and the balance
for sales promotion expenses.
Office — Cedar Grove,

each five

•

for

ianos, 4465 Petit Avenue, Encino, Calif. Underwriter—
Thomas Jay, Winston & Co., Inc., Beverly Hills, Calif.

Ford Electronics Corp.
May 25 (letter of notification) 75,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To pur¬
chase tooling, a 20% interest in Arizona Biochemical
Corp. and for working capital. Office—c/o John N. Val-

'i;1i

one

Underwriter—None.

debenture

I ,<i;

rate

stock at

securities.

the

to other stockholders of the company. Price—To be sup¬
plied by amendment. Proceeds—To be added to the com¬
pany's general funds to be held in cash or invested in

N
f*
f

Glass
Dec. 30

ployees and officers of the company who are stockhold¬
ers without further offering of such unsubscribed shares

w «<

New York.

Co.

17,500 shares of common stock to be of¬
holders of the company's 85,995 outstanding

(7/7)

for payment of $3,092,800 of bank loans.
Underwriter—
To be determined by competitive bidding. Probable bid¬

ders:

March 30 filed

CoJ

Gulf Power

Dillon,

Portland

City.

May 27 filed 50,000 shares of cumulative preferred stock
(par $100). Proceeds—Together with other funds, will

capital, inventories
$75,000
for the same purposes in the Salem Center; and $50,000
to provide working capital for General Sales Acceptance
Corp. for credit sales to member customers.
The bal¬
ance of the proceeds will be used to open two new stores
in Oregon and Idaho. Office — 1105 N. E. Broadway,
Portland, Ore. Underwriter — Fennekohl & Co., Inc.,
for the

New York Time, at the office of the

Manhattan Bank,

and facilities

Bldg., West Palm
Beach, Fla. Underwriter—A. C. Allyn & Co., Inc., Chi¬
cago, 111. Offering—Expected sometime in mid-July.
—

Information Meeting—Scheduled for July
p.m.

will be used for additional working

1960, filed 500,000 shares of common stock (par
$1). Price—To be supplied by amendment. Proceeds—To

Room 238, 43 Exchange Place,
Bids—Expected to be received at the
office of Southern Services,
Inc., Room 1600, 250 Park
Avenue, New York 17, N. Y., before 11 a.m., New York
Time on July 7, 1960.

(7/5-8)

Corp.

Stuart

New York

April 28 filed 90,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—$75,000

;•}»
ft*.

-A)

Sales

(7/7)

Chase

Offering—Imminent.

Inc., Denver, Colo.

Avenue,
Underwriter—James N. Reddoch & Co.,

5, 1960 at 3:30

Proceeds—For

General

share.

curities & Co.

construction, purchase of equip¬
working capital. Office—287-27 Road, Grand
Junction, Colo. Underwriter—Peters, Writer & Christ•

per

be invested
Union

Weld & Co.

and

ensen,

table Securities

General

ment

Price—$6

Office—1415

Co., Inc.; The First Boston Corp.; Equi¬
Corp.; Kidder, Peabody & Co. and White,
(jointly); Blyth & Co., Inc.; Merrill Lynch,
Pierce, Fenner & Smith Inc.; Salomon Bros. & Hutzler
and Drexel & Co. (jointly); Eastman Dillon, Union Se¬
sey,

(par $1) to be offered for subscription by stock¬
holders of record for a seven day period on the basis
of 3A of a share for each share held.
Price—$1.50 per

states that this statement has been withdrawn.

fl-

(no par)

stock

Co.

filed $5,000,000 of first mortgage bonds, due
Proceeds—Together with other funds, will be used
for property additions and improvements and for
pay¬
ment of $3,092,800 of bank loans. Office—75 North Pace
Boulevard, Pensacola, Fla. Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Hal-

Meters, Inc.
May 11 (letter of notification) 104,703 shares of common

Inc.

Co.

public offering,

1990.

$1). Price
supplied by amendment.
Proceeds—Between
$200,000 and $250,000 will be used to establish or acquire
a
Federal Housing Administration approved mortgage
financing and service company; $200,000 will be used to
pay off bank loans; and the balance for working capital.
Office—700 43rd St. South, St. Petersburg, Fla. Under¬
writer—Jaffee & Co., New York. Note—The underwriter

—To

May

by amendment.
Proceeds—For expansion. Office—480
Boylston St., Boston, Mass. Underwriter—Paine, Web¬
ber, Jackson & Curtis, Boston and New York.

new

Mar. 30 filed 80,000 shares common stock (par

Thursday, June 16, 1960

Discount

the

Gulf Power Co.

50,000 shares will be offered for public sale
by the company and 130,000 are outstanding and will be
offered by the holders thereof.
Price—To be supplied

properties and for the company's construc¬
tion program. Office — 630 Third Avenue, New York.
Underwriter—H. Hentz & Co., New York.

Discount

Memphis, Tenn.
Memphis, Tenn.

of I which

will be added to working capital for use in the acquisi¬

Guardian

(6/20-24)

Corp.

Proceeds—From

Price

stock.

common

April 29 filed 180,000 shares of common stock

corpora¬

controlled by him'to provide funds for apartment
house construction; about $500,000 will be used for the

Drive-In

General

tion

i'a

stock

(6/27-7/1)

—

Proceeds—$257,000 will be used to repay loans made by
an

Corp.

155,660 shares

Proceeds—$60,000 for additional lab¬
oratory and production equipment, $80,000 for additional
developmental engineering and sales promotion of ma¬
terials handling equipment, $80,000 for investment in
Atronic Learnings Systems, Inc., $93,000 for repayment
of bank loans, and $157,859 for working capital. Office
Bala-Cynwyd, Pa. Underwriter — Harrison & Co.,
Philadelphia, Pa.

April 25 filed 150,000 shares of cumulative convertible
preferred stock first series, $8 par, redeemable by the
company on or after May
15, 1963 at $10 per share,
and 150,000 shares of common stock (par 10 cents).
It

III

Atronics

filed

—$3.50 per share.

(6/20-24)

*i-

General

March

!|i

•

reserved for the acquisition of the

I C Inc.

(6/27-7/1)

June 29 filed 600,000 shares

Price—$2.50

'
of

common

stock

(par $1).

share.

Proceeds—To further the corpo¬
rate purposes and in the
preparation of the concentrate
and enfranchising of
bottlers, the local and national pro¬
motion and advertising
of its
per

beverages,

and

where

necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg.,
Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler &
Co., both of Denver.
Colo.
1
'

Number 5960

191

Volume

Illinois Beef, L. & W. S., Inc.

The Commercial and Financial Chronicle

Lasco Industries

(6/27-7/1)

filed 200,000 shares of outstanding common
stock.
Proceeds—To selling stockholders.
Price—$10
per share.
Office—200 South Craig Street, Pittsburgh,
Pa.
Underwriters—Amos Treat & Co., Inc., Nbw York,
and Bruno Lenchner, Inc., Pittsburgh, Pa.
29

April

Illinois Bell Telephone Co.

being offered for subscription by stockholders
27, 1960, in the ratio of one new share for
shares then held, with rights to expire on
Price—$20 per share. Proceeds—For general

of record May

each

ten

June

30.

corporate

purposes,

including

property

additions and

improvements, and repayment of advances to American
Telephone & Telegraph Co. Office—212 W. Washington
St., Chicago, 111. Underwriter—None.
•

(6/21-22)

Finance Corp.

Interstate

150,000 shares of common stock. Price —
To be supplied by amendment.
Proceeds—For general
funds and working capital.
Office—Evansville 8, Ind.
Underwriter—Goldman, Sachs & Co. (managing) New
May 11 filed

City.

York

Itemco,

;

Inc.

(7/5-8)

stock. Price—
$2.50 per share. Proceds—For repayment of outstanding
debt, for instrumentation and automation of laboratory
equipment, for expansion of existing manufacturing fa¬
cilities and the acquisition or establishment of additional
facilities, and the balance for working capital. Office—
18 Beechwood Avenue, Port Washington, N. Y.
Under¬
writers—Morris Cohon & Company and Schrijver & Co.,
•

York.

New

Kenrich Petrochemicals,

May 6 filed 167,000 shares of class A common stock (par
$1). Price—$3 per share. Proceeds—$150,000 will be used
to repay existing obligations to banks incurred in March
of 1960 to retire trade accounts and for other working

balance of

Gladstone

•

Inc.

to offer these securities

for Electronics,

stantially to meet increased demands on working cap¬
ital.
Office—6920 Sunset Boulevard, Los Angeles, Calif.

shares of capital stock. Price — $5
share. Proceeds—To repay interim loans up to $100,000 to Taylor & Co.; $100,000 for expansion of labora¬
tory facilities and personnel for research and develop¬
ment; $100,000 to increase plant production facilities;
$116,000 for tooling and production of proprietary items;
per

$110,000 for increase of inventory; $75,000 for research
arid development; and $2,000 for documentary stamps;
$110,000 will be added to working capital; and the re¬
maining $88,400 is unallocated. Office—5546 Satsuma

Majestic Utilities Corp.
April 29 filed $300,000 of 6% convertible 10-year de¬
bentures, $250 face value, 30,000 shares of common stock,
and options to purchase an additional 30,000 shares.
It
is proposed to offer these securities for public sale in
units (1,200), each consisting of $250 face amount of de¬
bentures, 25 shares of common stock, and options to
to purchase an additional 25 common shares.
Price—
$350 per unit. Proceeds—To be applied in part payment
a $250,310 bank loan and the balance to be added to
working capital and used for general corporate pur¬

1111 Stout Street, Denver, Colo. Under¬
& Company, Denver, Colo. Offering—
Expected sometime in July.

ceeds

(6/20-24)
May 10 (letter of notification) 240,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—
For general corporate purposes.
Office — 415 Madison
Ave., New York, N. Y. Underwriter—Edward H. Stern
& Co., 32 Broadway, New York 32, N. Y.

Commonwealth Avenue, Bos¬

bonds. Pro¬
the sale of
will be applied towards the repayment

June

McCormick Selph

company's

filed

be offered to stockholders on the basis
of one additional share for each 14 shares of common
stock held of record at the close of business on July 8,
I960. Price—To be supplied by amendment. Proceeds-

stock (par $4), to
*

Together with the proceeds from the proposed sale of
the first mortgage bonds will be applied toward repayr. ment of bank loans incurred in connection with the com¬

pany's construction program and for additions to the
company's working capital, to be used for construction
and other corporate purposes. Underwriters — Lehman
Brothers and Merrill Lynch, Pierce, Fenner & Smith

Inc., both of New York, and
Louis, Mo.
Lamtex Industries, Inc.

(6/27-7/1)

100,000 shares of common

Underwriter—Finkle,

stock. Price—

corporate purposes.
Long Island, N. Y.
Seskis & Wohlstetter, of N. Y. City

$5 per share. Proceeds—For general
Office — Motor Ave., Farmingdale,

Ave.,
Share

March 25
stock

mon

(letter of notification) 15,832 shares of com¬
(par $5) to be offered for subscription by

stockholders of record at the close of business

4, 1960 in the ratio of

share for

each

March

three

shares
held. Price—$17 per share. Proceeds—For
working cap¬
ital. Address—Cincinnati, Ohio. Underwriter — W. D.

Gradison &
Miles

Co., Cincinnati, Ohio.

Laboratories, Inc.
filed

subordinated

approximately
debentures

due

(6/24)
$8,300,000
1980.

The

convertible

company

pro¬

to offer to the holders of its outstanding common

poses

stock of record

stock then

11, 1960.
into

one

about June 24, 1960, rights to sub¬
debentures in the ratio of $100 principal
on

debentures

for

each

common,

held; the subscription offer will expire July

The

common

new

debentures which will be convertible

stock until

maturity, unless previously re¬
deemed, will be entitled to an annual sinking fund com¬
mencing July 1, 1966, sufficient to retire approximately
93% of the debentures prior to maturity. Proceeds—For
repayment of short-term

debt.

Underwriter—The First

Corp., New York, managing.

Mississippi River Fuel Corp. (7/7)
1 filed $24,000,000 of
sinking fund debentures due

June
1980.

Price—To be supplied by amendment.

Proceeds—
applied toward the reduction of outstanding bank

To be

loans.

Office
St. Louis, Mo.
Underwriter
Dillon, Union Securities & Co., New York.
•

—

Eastman

Mister

Service, Inc. (6/20-24)
(letter of notification) 80,000 shares of com¬
mon stock
(par 20 cents). Price—$2 per share. Proceeds
—For general corporate purposes. Office—338 Lafayette
April

Street, Newark, N. J. Underwriter—General Securities
Co., Inc., New York City.
Model Finance

Service, Inc.
100,000 shares of second cumulative pre¬

May 26 filed

ferred stock—65c convertible

of 6y2%

000

series, $5 par—and $1,000,junior subordinated debentures, due 1975.

Price—To be

supplied by amendment. Proceeds—To be
company's general working funds. Office—
Dwight Building, Jackson, Mich. Underwriter—Paul
C. Kimball & Co., Chicago, 111.

added to the
202

•

Monowall

Homes, Inc. (6/20-24)
(letter of notification) 150,000 shares of com¬
mon
stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—To pay an outstanding note, purchase of land,
equipment and for working capital. Office—546 Equi¬

April 22

accounts

reduce

payable,

and

for

Calif.
,

•

working
Calif. Un¬
Francisco,

additional

capital. Office—2308 San Felipe Rd., Hollister,
derwriter—Wilson, Johnson & Higgins, San

Movielab Film Laboratories Inc.

the holder thereof. Price—To be
supplied by amendment. Proceeds—For general corpo¬
rate purposes. Office—619 West 54th St., New York. Un¬
derwriter—Granbery, Marache & Co., New York.
Mustang Lubricant, Inc.
May 9 filed 80.000 shares of class A common stock.
Price—$5 per share. Proceeds—For general corporate

Office—Denver,

purposes.

Rubin & Co., Inc., New York, N. Y.
Pictures

Corp.

The

company

common

proposes

(letter of notification) $300,000 of 6%% con¬
subordinated debentures due March 30, 1968.
100%. Proceeds—For general corporate pur¬

owns
109,278 common shares, has entered into
agreement to sell said shares to the underwriter.
Price—To be supplied by amendment. Proceeds—To be

use

Mich.

(7/11-15)

1,000,000 shares of capital stock. Price—To
be supplied by amendment. Proceeds—To complete pay¬
ments on the company's property,
for repayment of
loans, and the balance to be added to the general funds
construction purposes and acquisitions. Office—Los

for

Angeles, Calif. Underwriters—William R. Staats & Co.,
of Los Angeles, Calif., and Bache & Co. and Shearson,

Co., both of New York City.

general funds and will enable it to

part of the proceeds in the reduction of bank
Office — 2301 Woodward Ave., Detroit,

York.

8 filed

Hammill &

all

indebtedness.

N. Y.

Underwriter—Hancock Securities Corp., New York, N.

Metropolitan Development Corp.

to offer 108,000 shares of new
by holders of outstand¬

which

added to company's

priCe_At

•

(7/5-8)

ing stock of record May 31, at the rate of one new share
for each three shares held. Arebec Corp., of New York,

vertible

June

(6/17)

Office—200 W. 57th Street, New York 18,

Underwriter—To

stock for subscription

March 29

poses.

Colo.

supplied by amendment.
Namm-Loeser's Inc.

Medallion

(6/20)

May 4 filed 100,000 shares of class A common stock (par
$1) including 62,500 shares to be offered for public sale
by the company and 37,500 shares which are outstanding

April 27 filed 217,278 shares of common stock (par $1).

(6/17)

April 27 (letter of notification) 150,000 shares of com¬
mon stock
(par one cent). Price—$2 per share. Pro¬
ceeds— For general corporate purposes.
Office — 829
Newark Avenue, Elizabeth, N.
J. Underwriter—Sim¬

•

Building, Baltimore 2, Md. Underwriter—Ameri¬
Washington, D. C.
*

Diversified Securities, Inc.,

Montgomery Ward Credit Corp. (6/27-7/1)
May 5 filed $50,000,000 of debentures, 1980 series. Price
—To be supplied by amendment. Proceeds—To be added
to general funds and will be available for the purchase
of deferred payment accounts from Montgomery Ward
& Co., Inc.
Office—100 West Tenth St., Wilmington,
Del. Underwriter—Lehman Brothers, New York.

McGowen Glass Fibers Corp.

mons,

table
can

and will be offered by

Associates, Inc.

May 13 filed
.

Reinholdt & Gardner, St.

— For plant and modernization
ex¬
Office—Miami, Fla. Underwriter—None.

April 15 filed 130,000 shares of capital stock, of which
100,000 shares will be offered for public sale by the is¬
suing company and 30,000 shares, being outstanding, by
the holders thereof. Price—To be supplied by amend¬
ment. Proceeds—To reduce outstanding indebtedness, to

capital, to be used for

(7/8)
maximum of 243,600 shares of common

share for each three shares held. Price—$7

share. Proceeds

penses.

eral corporate purposes.

Laclede Gas Co.

new

one

per

company^

Trust Co.

Inc.

15, 1960, filed 254,322 shares of common stock, to
offered to holders of the outstanding common at the rate

June

construction and gen¬
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co, Inc.; Stone & Webster Securities Corp.; Lehman
Brothers, Merrill Lynch, Pierce, Fenner & Smith-Inc.
and Reinholdt &
Gardner (jointly); Eastman Dillon,
Union Securities & Co. Bids—Expected to be received
on July 11 up to 11:00 a.m. EDT.
Information MeetingScheduled for July 7 at 10:30 a.m. EDT at the Bankers

Marine Corp.

Industries,

it Maule

Webber, Jackson & Cur¬

stock,
loans incurred in connection with the
construction program for additions to the

•

4th

„

"of bank

working

—

Martin-Parry

$10,000,000 of first mortgage
Together with the proceeds from

filed

—

common

Office

poses.

writer—Purvis

Inc.

tis, Boston and New York.
Laclede Gas Co. (7/11)
June

.North, Hollywood, Calif. Underwriter—Taylor and

Company, Beverly Hills, Calif.

common

neapolis.

Boston

Feb. 26 filed 200,000

stock (par $1),
being initially offered to its stockholders at the rate of
one share for each 10 shares held of record June 9, with
rights to expire on June 30 at 3:30 p.m. Boston Time.
Price—$35 per share. Proceeds—For additional working
caoital and expansion, and the balance if any, to reduce
Office—1079

Crowell, Weedon & Co., Los Angeles,

Calif.

for public

Plymouth Bond &

neapolis, Minn. Underwriters—Shearson, Hammill & Co.,"
New York
City, and Piper, Jaffray & Hop wood, Min-;

amount

Ave.,

—

basis. Price — To be supplied by amendment.
Proceeds—For general corporate purposes.
Office—Min-^

scribe for the

—

Office—6454

Midwestern Indemnity Co.

(6/28)

Liberty Records, Inc.
April 1 filed 150,000 shares of common stock (par 50c).
Price—Approximately $8.00 per share. Proceeds—To be
added to the company's general corporate funds, sub¬

April 20 filed 63,656 shares of common

ton, Mass. Underwriter—Paine,

purposes.

for-one

May

Underwriter

Inc.

Midwest Technical Development Corp. (7/5-8)
May 17 filed 561,500 shares of common stock, to be of¬
fered to holders of the outstanding common on a one-

Magnasync Corp.

units, each consisting of one share of
and one-half common
stock purchase

loans.

Ltd.

corporate

Miami, Fla. Underwriter
Corp., Miami. Fla.

units, to be supplied by amendment, and not to be in
excess of par. Proceeds—To make loans to Lamco. Office
—97 Queen St., Charlottetown, Prince Edward Island,
Canada, N. S.
Underwriter—White, Weld & Co., Inc.,

warrant.
Proceeds—$165,000 will be applied
to the repayment of certain loans, $75,000 for develop¬
ment and design work by a subsidiary in the field of
infra-red
instrumentation,, $100,000 for continued re¬
search in the design, development and production of
components for microwave instruments; and the balance
for working capital. Office—40 Marbledale Road, Tuckahoe, N. Y.
Underwriters — Ross, Lyon & Co., Inc.;
Globus, Inc.; Reich & Co.; Harold C. Shore & Co. and
Godfrey, Hamilton, Magnus & Co., all of New York City.

bank

Ore

000,000 of 6y4% first lien collateral trust bonds, series A,
due 1980, of Lio, $15,000,000 of 6x/4% subordinated de¬
bentures due 1985
of Lio, an unspecified
number of
shares of Lio capital stock, to be offered in units.
The
units will consist of $500 of collateral trust bonds, $500
of debentures and 15 shares of capital stock. Price—For

(7/5-8)

Laboratory

Iron

joined with The Liberian American-Swedish
Minerals Co., Monrovia, Liberia, in the filing of $15,-

Price—$4 per unit.

•

Liberian

May

(

stock

Ave., Cleveland, Ohio. Underwriter—Godfrey,

Hamilton, Magnus & Co.. Inc.. New York.

Kings Electronics Co., Inc. (8/1-5)
May 26 filed 200,000 shares of common stock (par 10
cents) and 100,000 common stock purchase warrants.
sale

purposes;

finance

$175,000 of 7% convertible

The company proposes

approximately $50,000 will
expansion of warehouse facilities;

be used
and the
$207,000 will be added to the company's gen¬
eral funds and used as working capital. Office — 4701

capital

subordinated
debentures due 1970, and 55,000 shares of class A com¬
mon
stock.
Price—For debentures, 100% of principal
amount; and $3.50 per class A share. Proceeds—$10,000
will be applied towards the repayment of demand notes,
$115,000 for new plant facilities and equipment; and the
balance for general corporate purposes. Office—120 Wall
St., New York. Underwriter—First Philadelphia Corp.,
New York.
,./

March 29 filed

(6/27-7/1)

& Terrazzo,

$1).
Price—$4 per share. Proceeds—$150,000 as reduction of
temporary bank loans, $140,000 in reduction of accounts
payable, $65,000 to repay notes and loans payable to
Barney B. and Nathan S. Lee, and the balance for gen¬

New York.

April 29 filed 200,000 shares of common

both

Products, Inc.

Tile

March 11 filed 125,000 shares of common stock (par

eral

12 filed 3,047,758 shares of common capital stock

(par $20)

Miami

150,000 shares of com¬
mon stock
(no par). Price—$2 per share. Proceeds—To
pay for a new building. Office—2939 S. Sunol Dr., Los
Angeles, Calif. Underwriter—Holton, Henderson & Co.,
Los Angeles, Calif.
Lee Motor

Bell Telephone Co.

Illinois

■*.

May

(6/20)

(letter of notification)

April 29

(7/6)

1960, filed $50,000,000 of first mortgage bonds,
series G, due 1997. Proceeds—For construction purposes.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Glore, Forgan & Co. and Eastman Dillon,
Union Securities & Co. (jointly). Bids—Expected to be
received on July 6 up to 11 a.m. (EDST)
9,

June

(2623)

Underwriter—Ladenburg, Thalmann & Co., New

^-National Capital Corp. (8/1-5)
June 9, 1960, filed 240,000 shares of class A common
stock (par $1). Price—$5 per share. Proceeds—For re¬
duction of indebtedness, working capital, and general
corporate purposes. Office — 350 Lincoln Road, Miami
Beach, Fla. Underwriters—J. A. Winston & Co., Inc., and
Netherlands Securities Co., Inc., both of New York City.
Continued

page

Chronicle

The Commercial and Financial
52

•

Continued from page 51

general corporate purposes.
Turnpike, Levittown, L. I., N.

Office

100,000 shares of com-,

(letter of notification)

cent). Price—$3 per share. Pro¬
ceeds— For general corporate purposes.
Office — 410
Livingston Avenue, North Babylon, N. Y. Underwriter
—Fund Planning Inc., New York, N. Y. Offering—Ex¬
stock

(par

one

pected sometime in July.
•

National Old Line Life Insurance Co.

(6/21)

12 filed 128,329 shares of class BB (non-voting)
stock, of which 43,329 shares are to be offered

April

common

and 80,000 shares

for the account of the issuing company

account

for the

stock,
are
to be
present holders thereof.

outstanding

representing

of the

offered

supplied by amendment. Proceeds — For general
corporate purposes. Office — Little Rock, Ark.
Under¬
writer—Equitable Securities Corp., Nashville, Tenn.

(7/5-8)
March 30 filed 60,000 of common capital stock (par $1).
Price—$6 per share. Proceeds—To retire $87,000 of in¬
debtedness, to purchase $18,000 of additional machinery
and equipment, to set up
a small
plant (at cost of
$28,000) on the West Coast to service the fruit tray and
vegetable tray business in that area, and for working
capital. Office — 3002 Brooklyn Ave., Fort Wayne, Ind.
Underwriter—First Securities Corp., 212 W. Jefferson St.,
Ft. Wayne, Ind.
National

Inc.
June 6 filed 100,000 shares of common stock (par $1).
priCe_To be supplied by amendment. Proceeds—To re¬
duce indebtedness, purchase machinery and equipment,
and add to working capital. Office—North Water Street,

Packaging Corp.

Norwalk, Conn. Underwriter—Myron
Co., New York City.

So.
&

Nuclear

A. Lomasney

Engineering Co., Inc.

April 18 (letter of notification) 30,000 shares of common,
stock (par 33.3 cents). Price—$10 per share. Proceeds
—To replace bank financing, reduce accounts payable,
purchase machinery and equipment and for working
capital. Office—65 Ray St., Pleasanton, Calif. Under¬
writer—Pacific Investment Brokers, Inc., Seattle, Wash.

(6/27-7/1)

Co.

G'ass

Ohear-Nester

Price—

To be

•

■

Norwalk Co.,

Corp.

Lawnservice

New York City.

—Lehman Brothers.

3000 Hempstead

—

Y. Underwriter—General
Investing Corp., New York, N. Y.

mon

—

selling stockholders. Office—Broadway and 20th,
St. Louis, 111. Underwriter—Merrill Lynch, Pierce,
ner & Smith Inc., New York.

East
Fen¬

Oil Shale Corp.
March

filed

shares of common stock, to be
its outstanding common stock.

300,000

Patent

Development Corp.

(7/18-22)

8, 1960, filed 150,000 shares of common stock

(par

cent). Price—$1 per share. Proceeds—Net of this
sale in combination with cash on hand will be used to
finance the client and sales solicitation program, and

the

corporate purposes. Office—68 Wil¬

balance for general

liam

St., New York City. Underwriters — Globus, Inc.
and Ross, Lyon & Co., both of New York City.
National

March

Life

Union

Insurance

Co.

(letter of notification) 50,000 shares of com¬
mon stock (par 50 cents).
Price—$4 per share. Proceeds
—For expenses in the operation of an insurance com¬
pany. Address—Montgomery, Ala.
Underwriter—Frank
B. Bateman, Ltd., Palm Beach, Fla.
■

(6/20-24)
stock (par $10). Price
supplied by amendment. Proceeds—Together
with the proceeds of a $1,100,000 insurance company
loan and $700,000 realized from the sale of installment
notes to its wholly-owned susbidiary finance company,
OK Acceptance Corp., will be used to reduce bank loans
in the amount of $1,300,000; to repay other indebtedness
in the amount of $228,600; and the balance of approxi¬
mately $800,000 will be added to working capital. Office
—551 Rio Grande Avenue, Littleton, Colo.
Underwriter
—Bosworth, Sullivan & Co., Inc., Denver, Colo.
Rubber

Welders,

Inc.

(6/27-7/1)

Navigation Computer Corp.

Haven

Oslo

(City of)

Authority and the municipal tramway companies
capital expenditures to be undertaken by these mu¬
nicipal enterprisse.
Underwriters—Kuhn, Loeb & Co.,
bor

Harriman Ripley &

•

Consolidated

Nebraska

Mills

Co.

(6/27-7/1)

at the rate of

Price

$10

—

one

new

Ott Chemical Co.

the

share for each four shares held.

share.

per

general funds of the

Proceeds

—

To be added to the

and will be used to finance

company

inventories and accounts receivable.
Office—
North 16th St., Omaha, Neb.
Underwriter—None.

larger
1521

New

May

18 filed

stock

ing

Britain

Gas

maximum

(7/8)

Light Co.

16,000

shares of

common

(par $25), to be offered to holders of the outstand¬

the basis of one new share for each five
shares held. Price—To be supplied by amendment. Pro¬
ceeds—To discharge bank loans, for construction, and for
general corporate purposes. Office—New Britain, Conn.
common on

Underwriter—Putnam & Co.,

Hartford, Conn.

New

Jersey Power & Light Co. (7/19)
24 filed $5,000,000 of first mortgage bonds,

May
1990.

Proceeds—For

construction

and

reduction

due

in¬

filed

debentures

holders

debenture for

expire

Proceeds

June

17.

Brothers and

Courts

Merchandising Co.
May 26 (letter of notification) $300,000 of 7% convert¬
ible
At

sinking fund debentures due July 1, 1965.

face

amount.

Proceeds—To

Price—

short-term

repay

loans

and for

working capital.

Texas.

Underwriter—Parker, Ford & Co., Inc., Dallas,

Office—118 Cole Street, Dallas,

Texas.

May

Washington Land Co.
filed $1,600,000 of first mortgage

certificates.

participation

discount of

17.18%

from face value.

Proceeds—For the

primary purpose of refinancing existing loans. Office—
1160 Rockville Pike, Rockville, Md.
Underwriter—In¬
vestor Service Securities, Inc.
Northern

Illinois

Gas

Co.

additional

for

note,

—

will be used for general corporate pur¬
Spring Street, N. W., Atlanta, Ga.
C. Langley & Co., New York; and

Co., Atlanta and New York.

Pacotronics,
June 2

filed

Inc.

150,000 shares of common stock.

Price—$4

•

Papercraft Corp. (7/6)
2 filed 130,063 shares of common stock (par $1),
to be offered initially to stockholders of the corporation
at the rate of one additional share for each eight shares
June

son

& Johnson.

pany's

be supplied

Price—To

retire

with the recent

loans

bank

by amendment.

incurred

connection

acquisition of LePage's Division of John¬
Any balance will be added to the com¬

funds.
Office—Pittsburgh, Pa. Under¬
Dillon, Union Securities & Co., New

general

writer—Eastman

York.

Price—

mined by

deter¬

competitive bidding. Probable bidders: Halsey
Inc. group. Bids—To be received on July

Stuart & Co.,

13,

10:00

a.m.

Scheduled for July 6.

CDST.

Information

Meeting

—

stock will

and 20,000 shares of common

publicly; 15,000 shares are issuable upon the
of warrants and the remaining 36,364 shares

exercise

issuable upon conversion

are

of the debentures.

Price—

For

debentures, 100%; price for common stock will be
supplied by amendment. Proceeds—To be used in part
($325,000) to purchase equipment, and the balance will
be used for working capital purposes. Office—69 SouthInc.

Stamford, Conn. Underwriters—M. L. Lee &
Milton D. Blauner & Co., Inc., both of

and

New York.

Progress Electronics Corp.;
May 25 (letter of notification) 200,000 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—To
develop and produce proprietary items in the electron¬
ics field. Office—1240 First Security Building, Salt Lake

City, Utah. Underwriter—Binder & Co., Inc., 541 South
Spring Street, Los Angeles, Calif.
Fund

Provident
Dec.

filed

for

Income,

Inc.

400,000 shares of common stock

(par $1).

Price—To be

supplied by amendment. Proceeds—For in¬
Plaza, Philadelphia, Pa.
Underwriter—Provident Management Corp., same ad¬

vestment. Office—3 Penn Center

dress.

Offering—Expected

late June.

(6/27-7/1)

April 1 filed 89,675 shares of common stock to be issued
to holders of the company's outstanding stock purchase
warrants at the rate of

one

share for each warrant at

price of $3.25 per share. The warrants were issued in
and after May, 1954, in connection with a previous pub¬
lic offering and included 46,000 to the underwriter, S.
Fuller

& Co., and 46,000 to the company's officers
employees. At present there are 89,675 warrants

and

outstanding. The warrants are exercisable until June 25,
1960. Office—52 Broadway, New York.
Rajac Self-Service,

Inc.
(letter of notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price—$3 per share. Proceeds
—For general corporate purposes.
Office—11 E. Second
March

Street, Mt. Vernon, N. Y. Underwriter—Walter R. Blaha
Co., Inc., Long Island City, N. Y. Note—This statement
may be withdrawn.
&

•

Ramo

June

Co.

Investment

(6/24)

(letter of notification) 9,600 shares of common
stock.
Price—At par ($1 per share).
Proceeds—To go
to selling stockholders.
Office—8401 Building, Omaha,
Neb. Underwriter—First Trust Co. of Lincoln, Lincoln,
Neb.
Reeves

Broadcasting & Development Corp.

(6/27-7/1)
March 30 filed 487,392 shares of common stock, of

which
publicly offered and 187,392
purchased by Christiana Oil at $4.75
per share and distributed as a dividend to
its 2,800
stockholders.
Price—$5 per share. Proceeds—To pay
a $110,000 bank note and for
general corporate purposes.
Office—304 East 44th St., New York.
Underwriter—
Laird & Co. Corp., New York.
shares

300,000
shares

are

Republic Ambassador Associates
April 29 filed $10,000,000 of Limited Partnership In¬
terests, to be offered in units. Price—$10,000 per unit.
Proceeds—To

purchase hotels in Chicago from a Webb
Knapp subsidiary. Office—111 West Monroe Street,

Chicago, 111. Underwriter—Lee Higginson
York. Offering—Expected in late June.

Corp., New

Republic Graphics Inc. (6/17-20)
April 29 (letter of notification) 75,000 shares of common
stock (par 10 cents).
Price—$4 per share. Proceeds—
For general corporate purposes.
Office —134 Spring

Street, New York, N. Y. Underwriters—Theodore Arrin
& Co., Inc., 82 Beaver Street, New York, N. Y.; T. M.
Kirsch & Co., and Robert A. Martin Associates, Inc.,
New

York, N. Y.

Roller Derby TV,
March 30 filed 277,000

Inc.
shares of

117,000 shares

issuing
be

sold

are

and

common

offered

for

stock, of which

public sale by the

company, and the remaining 145,000 shares will
for the account of certain selling stockholders.

be supplied by amendment.
corporate purposes relating to

sales

motion

share. Proceeds—About $162,000 will be applied
payment of certain indebtedness; $25,000 for ad¬
machinery and equipment; and $118,752 for
working capital, promotion and advertising.
Office—
52

Proceed*!—For
the

production

picture films of the Roller Derby,

June 1

per

debentures
offered

and the balance for

the

Underwriter—To

general

Inc.

ditional

expenditures.

debentures and

Price—To

Patrick County Canning Co.,

construction

(6/27-7/1)
convertible subordinated
71,364 shares of common stock, of which

Polycast Corp.

May 19 filed $400,000 of 6V2%

Glendale, L. I., N. Y. Underwriter—Myron A. Lomas¬
ney & Co., New York City. Offering—Expected in midJuly. I
;

of bank loans to be obtained for tem¬

qnd for other

•

May 27 filed $30,000,000 of first mortgage bonds due 1985.
Proceeds—To be applied to the retirement of not to ex¬

$5,000,000

finance inventory

manufacturing costs. Office—1 Constitutioh St., Bristol,
R. I. Underwriter—R. A. Holman & Co., Inc., New York.

ceed

porary financing of part of the company's new construc¬
tion and to increase working capital for application to

principally

poses,

share. Proceeds—For general corporate purposes,
including the reduction of indebtedness and research
and development expenses.
Office — 70-31 84th Street,

per

March 25 filed 140,000 shares of common stock.

(7/13)

Office—151

Proceeds—To

Price—The certificates will be offered at

of principal amount.

100%

Underwriters—W.

presently held.

North

—

$100

purchase of additional machinery and equipment to be
installed in certain new manufacturing plant facilities,
construction of which has been completed; the balance

table Securities

American

Price

with rights to

• Oxford
Manufacturing Co., Inc. (6/21-7/1)
May 3 filed 240,000 shares of class A common stock (par
$1), of which 160,000 shares are now outstanding and
are to be offered for public sale by the present holders
thereof and the remaining 80,000 shares will be offered
by the issuing company.
Price — To be supplied by
amendment.
Proceeds—$150,000 will be used for the

poses.

North

the rate of

Road, Muskegon, Mich. Underwriter
Byllesby & Co., Inc., Chicago, 111.

of the proceeds

•—Expected to be received on July 19 up to 11 a.m. EDT.
information
Meeting — Scheduled for July 15
at 67
Broad Street, between 10:00 a.m. and 12 noon.

1960,

shares then held

Agard

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co., Lehman

(jointly); Equi¬
Corp.; First Boston Corp.; Merrill Lynch,
Pierce, Fenner & Smith Inc.; Eastman Dillon, Union
Securities & Co., and White, Weld & Co. (jointly). Bids

subordinated

improvements to properties, for equipment and the bal¬
ance for working capital and other purposes. Office—500

& Hutzler

3.11

retirement

For

—

convertible

1, 1970.
The company is offering
subscription
by common stock¬

June

each

determined

„

for

record

Office—Denville, N. J. Underwriter—To be

Salomon Bros.

(8/1-5)
March 30 filed 50,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—$60,000 will be
utilized to repay the company's indebtedness to Busi¬
ness Development Co. of Rhode Island; the balance will
be added to working capital for general corporate pur¬

•

$450,000
June

due

debtedness.

competitive

Co., Lazard Freres & Co., and Smith,

Barney & Co., all of New York.

debentures

May 11 filed 111,951 shares of common stock, to be of¬
fered for subscription by holders of outstanding common,

Electricity Works, the Oslo Har¬

for

March

# '

(6/21)

Norway

Angeles, Calif.

& Co., Los

Corp.

Pyramid Electric Co.

May 24 filed $10,000,000 of sinking fund external loan
bonds due June 15, 1975. Price — To be supplied by
amendment. Proceeds— To be advanced by the City's

Townsend, Crouter & Bodine, both of Phila¬

delphia, Pa.

general funds of the company and

Staats

Pearson

Co.,

Loan Fund to the Oslo

May 18 filed 50,709 shares of common stock (no par).
Price—To be supplied by amendment. Proceeds—To be
added to the general funds of the company and used for
general corporate purposes. Office—1621 Snyder Ave.,
Philadelphia, Pa. Underwriters—Drexel & Co. and De-

William

field Ave.,

the

will be
available for general corporate purposes. Office—717 No,
Highland Avenue, Los Angeles, Calif.
Underwriter-

added to the

subscription date and record date will be supplied
by amendment. Price—$2.50 per share. Proceeds—For
general corporate purposes. Office—9489 Dayton Way,
Beverly Hills, Calif. Underwriter—None.
The

incurred in connection with

company's Mexican Tidelands operations and to
reduction of current liabilities.
The balance will
the

offered to the holders of

—To

one

payment of bank borrowing

the

April 14 filed 210,045 shares of common stock (no par).
Price
To be supplied by amendment. Proceeds — To

Mar. 29 filed 50,000 shares common
National
June

Thursday, June 16, 1960

Proceeds—$7,000,000 will be applied to the

amendment.

(6/28)

preferred stock (par $100).
Price—To be supplied by amendment. Proceeds—To re¬
tire $5,000,000 of bank loans and the balance for con¬
struction purposes. Office—Portland, Ore. Underwriter

May 27 (letter of notification) 75,000 shares of common
stock (par $1).
Price —$4 per share. Proceeds —For

National

Co.

Northwest Natural Gas

May 25 filed 60,000 shares of

Fair Corp.

Fountain

National

Jan.

(2624)

Underwriter — G. Everett
Co., Inc., New York. Offering—Expected some¬

Broadway,

Parks &

New York.

time in August.

Pauley Petroleum Inc. (7/11)
May 27 filed $10,000,000 of subordinated

(convertible)

due

1976.

Price

—

working capital. Office—4435 Woodley Ave., Encino, Calif. Underwriter—To be supplied by
amendment.
•

Rosauer's Super

Markets, Inc. (6/27-7/1)
(letter of notification) 28,000 shares of 6% cumu¬
lative
convertible preferred
stock (par $10).
Price—
$10.50 per share. Proceeds—To purchase fixtures, equip¬
ment and

debentures
supplied

inventory for two proposed new super markets.
Office—Spokane, Wash. Underwriter—Foster & Mar¬
shall, Seattle, Wash.

Volume

191

Number 5960

The Commercial and Financial Chronicle

American Corp.

Roto

May 27 filed 75,000 shares of common stock (par $1) to
be offered for cash sale to the public, and 44,283 shares
to be issued in exchange for common and preferred

of four

subsidiaries.

Price—To

supplied

by
amendment. Proceeds—To be used largely for reduction
of accounts payable, as well as for new tooling, research,

repayment

officer's loan, and

general

corporate

purposes. Office—93 Worth Street, New York. Under¬
writer—Morris Cohon & Co., New York. Offering—Ex¬

pected in mid-July.
S.A.F., Ltd.

(2625)

Sottile, Inc. (Formerly South Dade Farms, Inc.)
July zy Jtiiea z,u0u,uuu snares ui common slock (par $1;,
of

which

the

1,543,000 shares
of

account

the

are

be issued and sold for

and 457,000 shares, repre¬
senting outstanding stock, to be sold for the accounts
of certain selling stockholders. Price—To be
supplied by
amendment.

company,

Proceeds—To

retire

70%

the

common

outstanding at the date of the stock offering; to
in the capital stocks of six of the company's
seven bank subsidiaries; to
repay a bank loan of $6,400,000; to add to working capital; to retire certain longterm indebtedness; and to develop citrus groves.
Office
Invest

—250

South

East First

May 6 filed $303,000 of partnership interests, to be of¬
fered for sale in units. Price—$500 per unit. Proceeds—
To acquire fee title to certain land in St.
Augustine, Fla.}

which will be constructed a 54-unit Howard John¬
son Motor Lodge and restaurant, swimming pool and re¬
lated facilities. Office—60 East Coral Center, Fort Lau¬
derdale, Fla. Underwriters—Radice Securities Corp. and
Jerry Thomas & Co., Inc., Palm Beach, Fla.

May

due

1985.

• Safticraft Corp.,
Patterson, La. (6/20-24)
April 29 filed 275,000 shares of common stock (par 10
cents).
Price—$3 per share. Proceeds—The company

$50,000 to expand its efforts in the sale
of Safticraft boats nationally; $250,000 for reduction of
short-term borrowings; and the remaining $293,500 to
proposes

use

be advanced to du

Pont, Inc. as additional working cap¬
in the financing of increased inventories

ital necessary

and receivables incident to the increased sales volume of

Underwriter

Dupont.

New York.

—

George,

O'Neill

Co.,

Inc.,

•

Southern

Development Corp.
April 28 (letter of notification)

(6/27-7/1)
an undetermined num¬
ber of shares of common stock (par $1) not to exceed
$300,000. Price—To be supplied by amendment. Proceeds
—For mining expenses. Office — c/o Wallace F. McQuade, Pres., 246 Beaconsfield Blvd., Beaconsfield, Que¬
bec, Canada. Underwriter—P. Michael & Co., 69 Passaic
St., Garfield, N. J.
Sav-A-Stop, Inc. (7/11-15)
May 27 filed 100,000 shares of common stock (par 10
cents). Price—$4.50 per share. Proceeds—For working
capital.
Office — 2202 Main Street, Jacksonville. Fla.
Underwriter—Pistell, Crow Inc., of New York City, for¬
merly Pistell, Schroeder & Co.

Union Gas

filed

000

of bank

the

balance

Co.

$12,000,000

(6/23-24)

services

small

business concerns.

will

for

used

further

construction

ex¬

penditures in 1960. Office—Fidelity Union Tower, Dallas,
Texas. Underwriters—A. C. Allyn & Company, Incorpo¬
rated, New York and Chicago, and Snow, Sweeney & Co.,
Inc., New York.
Inc.

Price—
$2 per share. Proceeds—For the drilling of three wells
and the balance for working capital. Office—2720 West
Mockingbird Lane, Dallas. Underwriter — Elmer K.
Aagaard, 6 Salt Lake Stock Exchange Bldg., Shit Lake
City, Utah.
2 filed 85,484 shares of common stock, being of¬
fered for subscription on the basis of one new share for
each 10 shares held of record June
13, 1960. Price—$20

share.

The Pyramid Rubber Co., the largest individ¬
stockholder, owning 178,978 shares, has agreed to
purchase at the offering price within five days after
the expiration of the subscription offer (June 30, 1960),
all of the stock not sold to the company's stockholders.

within 30

thereafter resell
for investment at the offering price some of the stock
it shall acquire to other persons (not exceeding
15) who
may be stockholders, officers or directors of the com¬
pany. Office—Chicopee, Mass. Underwriter—None.
may

Stelma, Inc. (6/27-7/1)
May 10 filed 175,000 shares

days

indebtedness

for

and

construction

Thurow

Electronics, Inc.
200,000 shares of class A

March 28 filed

expenses.

common

stock,

(par $2.50) of which 100,000 shares are to be offered for

public sale by the issuing company and the balance by
H. M. Carpenter, President. Price—$3 per share. Pro¬
ceeds—To be used as additional working capital for in¬
ventory and business expansion purposes. Office—121
South Water, Tampa, Fla. Underwriter—Donald V. Stabell, of St. Petersburg, Fla. Offering—Imminent.
Trans Tech

Systems, Inc. (7/5-8)
65,000 shares of common stock
(par
cent). Price—$10 per share. Proceeds—For general

March
one

filed

purposes. Office — 5505 Wilshire Blvd.,
Los
Angeles 48, Calif. Underwriter—Myron A. Lomasney Sc
Co., New York.

corporate

•

Tri-Point

Plastics, Inc. (6/20-24)
(letter of notification; loU,OU0 shares of com¬

Price—$2 per share.

Proceeds
Office—175 I. U. Willets Road, Albertson, L. I., N. Y. Underwriter—Martinelli, Hindley & Co., Inc., New York, N. Y.
mon

stock

—For

ual

Pyramid Rubber

Office—Houston, Texas. Underwriter—Dillon, Read &
Co., Inc., New York City. Note—This offering has been
indefinitely postponed.

March

Spalding & Bros., Inc.

May

per

duction

•

Southwestern Oil Producers,

March 23 filed 700,000 shares of common stock.

(A. G.)

Texas Eastern Transmission Corp.
April 11 filed $25,000,000 of debentures, due 1980. Price
—To be supplied by amendment. Proceeds—For the re¬

(par 10 cents).

general corporate purposes.

(6/27-7/1)

Triumph Storecrafters Corp.

May 18 filed 145,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—For general cor¬
porate purposes. Office—Houston, Texas. Underwriters
—Hardy & Hardy, New York City, and First Southeast¬
ern Co., Atlanta, Ga.
National Assurance Co.

Underwriters

May 12 filed 240,000 shares of common capital stock.
Price—$7.50 per share. Proceeds—For general corporate

including payment of operating expenses, the
carrying on of the insurance business, and for working
capital (and including $50,000 which will be certified to
State authorities for investigation and examination by
purposes,

Sea-Highways, Inc. (6/20-24)
May 9 filed 150.000 shares of common stock. Price—$2
per share. Proceeds—For working capital. Office—PanAmerican Bank Bldg., Miami, Fla. Underwriter—John R.

outstanding common
stock. Price—To be supplied by amendment.
Proceeds
—To selling stockholders.
Office — Stamford, Conn.
Underwriter—Amos Treat & Co. Inc., New York City.

Maher

Super Food Services, Inc.
May 10 filed 60,000 preferred shares-convertible series
($1.50 annual cumulative dividend), $1 par. The com¬
pany proposes to sell 50,000 shares through a group of

surance

underwriters headed by Wm. H. Tegtmeyer &

March 2 filed 110,000

Associates, of New York.

Seaway Shopping Centers, Inc.
May 20 filed 90,000 shares of $.50 cumulative convertible
preferred stock, ($.01 par) and 90,000 shares of class A
common stock
($.01 par).
It is proposed to offer these
shares in units, each consisting of one share of preferred
at $7 per share and one class A share at $3 per share,
or $10 for the unit. Proceeds—To
complete construction
,©f new shopping centers. Office — 619 Powers Bldg.,
Rochester, N. Y. Underwriter—John R. Boland & Co.,
Inc., New York. Offering—Expected mid-to-late July.
Service

Instrument Corp.
(6/20-24)
(letter of notification) 200,000 shares of com¬

March 23
mon

stock

ceeds

(par 10 cents). Price—$1.50 per share. Pro¬
For general corporate purposes.
Office — 693

—

Broadway, New York, N. Y. Underwriter

—

Pearson,

Murphy & Co., Inc., New York, N. Y.
Sierra

Electric

(6/27-7/1)

Corp.

which
80,000 shares are to be sold for the account of the.
issuing company and 20,000 shares are to be sold for
the account of the present holder thereof.
Price—$9
per share (par $1). Proceeds—To reduce bank loans and
for working capital. Office—Gardena, Calif. Underwriter
—Marron, Sloss & Co., Inc., New York City.
Sierra

Pacific

Power

Co.

111. on a firm commitment basis; and by a preoffering subscription Central Securities Corp. has con¬
ditionally agreed to purchase 10,000 such shares. Price—
$25 per share for public offering. Proceeds—To provide
the funds to exercise an option to purchase 72,600 of the
113,003 issued and outstanding shares of common of
Progressive Wholesale Grocery Co., at a maximum ag¬
gregate price of $1,333,333. Office—Chicago, 111.

Swimming Pool Development Co., Inc.
(6/27-7/1)
April 15 filed 250,000 shares of common stock

(par $1).
Principally for addi¬
tional working capital.
Office—Florence, Ala. Under¬
writer—-Marron, Sloss & Co., Inc., New York.
Price

—

share. Proceeds

—

System IVIeat Co.
share.

per

150,000 shares of
Proceeds

—

common

stock.

Price—$5

For payment of employees'

sal¬

aries, first mortgage installment, accrued officers' sal¬
aries, and the balance for working capital.
Office —
Newcastle, Wyo. Underwriter—Purvis & Co., Denver,
Colo. Offering—Expected sometime in July.
Talcott

May 26 filed $3,500,000 of debentures due July 1, 1985.
pay some $2,300,000 of outstanding bank
loans and for construction expenditure. Office — 220
South Virginia St.,
Reno, Nev. Underwriter—To be de¬
termined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and White,

per

June 2 filed

(7/6)

Proceeds—To

Co., Chi¬

cago,

March 29 filed 100,000 shares of common stock, of

(James)

Inc.

certificate of authority to transact in¬
business). Office—1939 North Meridian St., In¬

it to procure the

dianapolis, Ind. Underwriter—David L. Johnson & As¬
sociates, Inc., Indianapolis, Ind.
United Components,

Inc.
shares of common stock, of which
to be offered to Sheldon Leighton, a

10,000 shares are

director, at $2.50 per share and the remainder is to be
publicly offered. Price—To be supplied by amendment.
Proceeds
For new equipment, advertising, and other
general corporate purposes. Office—Orange, N. J. Un¬
derwriter—Darius, Inc., New York City.
—

United States Boat Corp.
March

filed

(6/27-7/1)

350,000

of common stock

to be

publicly offered. Price—$2 per share. Proceeds—$221,826 will be applied to the repayment of loans to United
States Pool Corp. which were used for general corporate
purposes, and the balance will be utilized for working
capital, including a later repayment of $45,000 to U. S.
Pool Corp.
Office —27 Haynes Avenue, Newark, N. J.
Underwriter—Richard Bruce & Co., Inc., New York.
•

Universal

Marion

Corp.

April 15 filed 435,120 shares of common stock (no par),
being offered for subscription by common stockholders
of record June 10, at the rate of one new share for each
four shares or fraction thereof with rights to expire on
July

at 3:30

p.m.

(EDT). Price — $13.50 per share.
general funds of the com¬

Proceeds—To be added to the

(6/20-24)

and be available for use in developing the com¬
pany's tract of land near Tampa, Fla., for working capital
and for possible acquisition of other properties. Office—
602 Florida Theatre Bldg., Jacksonville, Fla. Underwriter

May 19 filed $20,000,000 of senior notes, due June 1, 1980
and 150,000 shares of common stock (par $9). Price—
To be supplied by amendment. Proceeds—To be added
to the company's general funds and be available for gen¬

pany

eral

—None.

corporate

New York.

purposes.

Office—225

Park Ave.,

Underwriters—F. Eberstadt & Co. and

South,
White,

Universal Marion Corp.

(jointly); Stone & Webster Securities Corp.
and Dean Witter & Co. (jointly).. Bids—Expected to be
received on July 6, at 49 Federal St., 8th floor, Boston,
Mass., up to 10:30 a.m. EDT.
Information Meeting—
Scheduled for July 1 at 11:00 a.m. EDT. at 90 Broad St.,

Weld & Co., both of New York.

March

^ Talley Industries, Inc.
June 14, 1960, filed 150,000 shares of common stock.
Price
To be supplied by amendment. Proceeds — For
general corporate purposes, including the reduction of

ferred

stock

in the

over-the-counter market, or

19th

indebtedness,

stockholders.

Weld & Co.

•

floor, New York City.

—

the

Sire

March

4,500

Plan
9

(6/27-7/1)
debentures and

Normandy Isle, Inc.

filed

$225,000

10-year 7%

$3.50 cumulative, non-callable, partici¬
pating preferred stock (par $5), to be offered in units,
each unit consisting of one $50 debenture and one pre¬
ferred share.
•

Office—705 Lamar

Blvd., Austin, Texas. Underwriter—Dempsey-Tegeler &
Co., St. Louis, Mo. Offering—Expected in late June.

•

sinking fund debentures,
supplied by amendment. Pro¬
applied in part to the repayment of $4,000,borrowings for construction purposes, and

Price—To

ceeds—To be

•

Saucon

Texas Capital Corp.
May 4 filed 350,000 snares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To be
used to provide
investment capital and management

stock

Street, Miami, Fla. Underwriter
—Bear, Stearns & Co., New York. Offering—Indefinite.

upon

nance

research

acquisition

and

machinery and

Price—$100 per unit.
Proceeds — To fiOffice—Ingraham Bldg., Miami, Fla.

Underwriter—Sire Plan Portfolios, Inc., New York.
•

Skyline Homes, Inc.
April 15 filed 115,000 shares of class A common stock
(par $1). Price—To be supplied by amendment. Pro¬
ceeds—To be added to the company's working capital
and used for general corporate purposes.
Office—2520
By-Pass Road., Elkhart, Ind. Underwriter—Rodman &

Renshaw, Chicago, 111. Offering—Expected in late June.
•

Smith, (Herman H.) Inc.
May 24 (letter of notification) 82,000 shares of
Stock (par 10 cents). Price—$3

per

common

share. Proceeds—For

and
Office—

expenses,

equipment.

31,361

shares of 4V2%

cumulative pre¬

($100 par). Price—To be offered for sale
otherwise by public
at $95

share, or such

lesser price

private sale

prices which may be obtained. Proceeds—To
Office—602 Florida Theater Bldg.,

per

selling
Jack¬

sonville, Fla. Underwriter—None.

Cheshire, Conn. Underwriter—Adams & Peck, New York

•

outstanding shares of common
stock (par 10 cents). Price—$6.50 per share. Proceeds—
To selling stockholders. Office—557 First Security Bldg.,
Salt Lake City, Utah. Underwriter—A. C. Allyn & Co.,

Tampa

Electric Co.

(6/28)

May 19 filed $25,000,000 of first mortgage bonds, series
due July 1, 1990. Proceeds—To be used to pay some $24,-

000,000 of bank loans and for 1960 construction expendi¬
tures. Office—111 North Dale Mabry Hwy., Tampa, Fla.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Stone &
Webster Securities Corp.; Merrill Lynch, Pierce, Fenner
& Smith, Inc.; Goldman, Sachs & Co. Bids—Expected to
be

received

19th

to 11

June 28 at 90 Broad

St.,
floor, New York City. Information Meeting—June

24 at 11:00

a.m.

•

Telecomputing Corp.
April 11- filed 100,000 outstanding shares of common
stock (par $1). Price—To be supplied by amendment.
Proceeds
To selling stockholder.
Office — 915 North
—

general corporate purposes. Office—2326 Nostrand Ave.,

Citrus

Witter &

Street & Co., Inc., all of New York.

withdrawn.

The

Uranium Reduction Co.

March

Brooklyn, N. Y. Underwriters—First Broad Street Corp.;
Russell & Saxe, Inc., V. S. Wickett & Co., Inc., and

filed

City.

acquisition.

development

Ave., Los Angeles, Calif. Underwriter — Dean
Co., New York City and Los Angeles. Note—

underwriter

states

that

this

statement

has

ifiled

(6/21)

189,669

Inc., Chicago, 111.
Varian

Associates

(7/14)

May 24 filed 216,645 shares of capital stock to be of¬
subscription by stockholders of record July 14,
at the rate of one new share for each 15 shares held. Price
fered for

—

supplied by amendment. Proceeds
new machinery, the retirement of

—

For con¬

outstanding
loans, and the balance for working capital. Office
—Palo Alto, Calif. Underwriter—Dean Witter & Co., San
struction,
bank

Francisco, Calif.

(6/22)
principal amount of 6% con¬
debentures, due June 1, 1975 and
360,000 shares of common stock (par $2), to be offered
only in units, each consisting of $100 principal amount
•

Wallace Properties,

April

Inc.

5 filed $12,000,000

vertible subordinated

been

Continued

page

The Commercial and
54

three shares of common stock. Price
supplied by amendment. Office—Dallas, Texas.
Underwriter—Harriman Ripley & Co., Inc., New York.
of debentures and

plans no
some in
although the form it is to take has not as yet been

1961,

(6/20)
April 15 filed 700,000 shares of common stock (par $1).
It is proposed that this offering will be on a subscription
basis to the company's present common stockholders.
Instrument Co., Inc.

Proceds—$600,000

supplied by amendment.

Price—To be
pay

the 5%

held by the Secretary of the U. S.
Treasury as assignee of the Reconstruction Finance Corp.;
$200,000 to pay the 6% secured notes issued as part pay¬
ment for the stock of Electro-Mec Laboratory, Inc.; and
the balance for working capital and other corporate
chattel mortgage note

Office—221 Crescent St., Waltham, Mass.

purposes.

Un¬

derwriter—Schweickart & Co., New York.
West Ohio Gas Co.

stock. The com- •
subscription by its

for

the rate
held with rights

stockholders of record June 6, 1960, at
share for each 10 shares then

new

one

stock

this

offering

common

expire on July 7 at 2:00 p.m. EST. Price—$17.50 per
share. Proceeds—To be added to the company's general

and

funds

additions and im¬

be used for property

will

City Gas Co.
reported that this company is

March 10 it was
to tile

expected

stock some¬
Underwriter—Kidder, Peabody & Co., New

undetermined amount of common

time in June.

provements. An additional $300,000 is to be provided
through long term financing during the current year.
Office
319 West Market Street, Lima, Ohio.
Under¬
—

writer—None.

Inc.

Westmore,

Wheeler

Fibre

19 filed

Glass

100,000

Co., New

Securities

Underwriter—Jacey

wood, N. J.
York, N. Y.

May

(7/11-15)

Boat Corp.

shares of common stock

cents). Price—$4 per share. Proceeds—$35,000
chase of machinery and equipment; $18,000 for

(par 10
for pur¬
required

deposits on the company's lease, insurance and utilities;
$185,000 for working capital and the balance for expan¬

production facilities. Office—450 Zerega Avenue,
Y. Underwriter—Morris Cohon & Company,

sion of

Bronx, N.

of New York.1

it White Avionics Corp
June

(letter of notification) 150,000 shares of
(par 10 cents). Price—$2 per share. Pro¬
general corporate purposes. Office—Terminal

1960

common

stock

ceeds—For

Drive, Plainview, L. I., N. Y. Underwriters—Common¬
wealth Securities Co., Inc., Philadelphia, Pa. and Planned
Investing Corp., New York, N. Y.
•

(6/27-7/1)

Whiimoyer Laboratories, Inc.

Jan. 28 filed 85,000

shares of common stock and

$500,000

1977, with warrants

of 6% subordinated debentures, due

purchase of 10,000 additional common shares at
$5 per share.
Price — For the, debentures, 100% of
principal amount; for the 85,000 common shares, $6
per share.
Proceeds—For general corporate purposes,
including the reduction of indebtedness, sales promo¬
tion, and equipment.
Office—Myerstown, Pa.
Under¬
writer—Hallo well, Sulzberger, Jenks, Kirkland & Co.,
Philadelphia, Pa.

for the

•

Wilier Color

Television System,

(6/27-7/1)

Inc.

Jan. 29

stock

(letter of notification) 80,890 shares of common
(par $1).
Price—$3 per share.
Proceeds—For

general corporate purposes.
Office—151 Odell Avenue,
Underwriter—Equity Securities Co., 39
Broadway, New York City.

Yonkers, N. Y.
Win-Chek

April

Industries,

filed

150,000

(6/27-7/1)

Inc.

class

stock

publicly offered, 15,000 shares to be issued pursuant to
a
restricted stock option plan, and 21,500 shares being
registered but not offered at this time. Price—$3 per
share (par 25 cents). Proceeds—To purchase additional
inventory and equipment and the balance to improve the
company's working capital position.
Office — Moonachie, N. J. Underwriter—Michael G. Kletz & Co. (man¬
aging).

& Co. and
York City.

with

$8-$9,000,000,

approximately

the

set

timing

for

of this year, sometime after the Novem¬
elections. Proceeds—For expansion purposes. Office

the last quarter
ber

property, for constructing a motel on said property and
various leasehold improvements on the property. Office
—7805 Sunset Boulevard, Los Angeles, Calif.
Under¬
writer—Standard

Securities

Corp.,

same

address.

Prospective Offerings
Acme

Steel

Co.

March 25 the company's annual report stated that capital

improvements during 1960-63, inclusive, have been proj¬
ected to cost between $40,000,000 and $45,000,000.
It is
anticipated that a substantial proportion of this money
be

forthcoming from depreciation and retained
earnings. In addition, the sale of $10,000,000 of preferred
stock in 1960 is planned to supply a part of these over¬
all capital requirements. Office—Chicago, 111.
Alberta Gas
1

Trunk

Line Co.

announced

that

the

United States

and

the

company

balance

the

financing in

Canada.

Avnet

15 it was indicated by

May

the annual meeting

H. C. Forbes, Chairman, at

of stockholders, that common stock¬

rights to subscribe to convertible deben¬
common stock in the Fall.
This type of financ¬

ing would be contingent upon the

ability of the company

its presently outstanding 4% debentures converted
common
stock.
Con Edison this year will spend

to get

into

construction compared with
$222,000,000 in 1959 and $189,000,000 in 1958.
For the
five years through 1964, Mr. Forbes estimated that the
utility would spend $1.2 billion for plant expansion. To
finance the five-year program he said the company will
have to issue some $800 million of securities of one kind
about

$225,000,000

new

another.

Corp.
May 17 it was reported that the company contemplates
the filing of, about $2,000,000 of convertible debentures
sometime in June. Proceeds—For expansion and general

Office—70 State St., Westbury, L. 1.,
Underwriter—Hemphill, Noyes & Co., New York.

corporate purposes.
N. Y.

of convertible de¬

and may occur in the next
few months. Office—Birmingham, Ala. Possible Under¬
writer—Sterne, Agee & Leach, Birmingham, Ala.
i
is being discussed

bentures

Co.

Lighting & Power
was announced
in

Houston

March

annual
$35 million in,
to support the

the company's

it.

that it anticipates approximately
money will
be required in 1960

report

year's construction program, and to repay outstanding
bank loans. Studies to determine the nature and timing
of the issuance of additional securities are presently
Last August's offering

under way.

of $25,000,000 of 47/s%

bonds was headed by Lehman Brothers,
Dillon, Union Securities & Co. and Salomon
& Hutzler.
Office — Electric Building, Houston,

first mortgage
Eastman

Consumers

Power Co.

Public Service
sell securities
with base value of $73,101,600. The company proposes to
issue and sell first mortgage bonds in the amount of
$35,000,000 maturing not earlier than 1990 for the best
price obtainable but not less favorable to ffhe cbmjpany
expected in
quarter of the year. Proceeds—To be used to
finance the continuing expansion and improvement of
the company's electric and gas service facilities in a 65county area outside of Greater Detroit. Underwriter—To
be determined by competitive bidding. Probable bidders:
For bonds—Halsey, Stuart & Co. Inc.; White, Weld & Co.,
and Shields & Co. (jointly); Morgan Stanley & Co.; The
First Boston Corp., and Harriman Ripley & Co., Inc.
For debentures—Morgan Stanley & Co.
Information
than

5%% basis. The mortgage bonds are

last

the

Hydrometals, Inc.
rights offering of $2 million to $2^ million of con¬
vertible debentures. Office — Chrysler Bldg., New York.
a

Proceeds

July 22 at 11:00 a.m.

scheduled for
at the Bankers Trust Co., 16 Wall

St., New York City, 12th floor.
Deckert

mon

stock

was

announced that

100,000 shares of com¬

expected to be filed in June. Proceeds—

are

general corporate purposes.-Office—Palmyra, Pa.
Underwriter—Plymouth Securities Corp., New York City.
* El Paso Natural Gas Co. (7/26)
June 9
1960, it was announced by the

company

that

approximately 1,140,000 additional shares will be offered
for subscription by common stockholders on the basis
of one new share for each 15 shares held as of the ten¬
tative record date of July 26, with rights to expire on
Price—To be supplied by amendment.
Texas. Registration — Expected on or
June 22. Underwriter—White, Weld & Co., New

about Aug. 11.

Office
about

—

El Paso,

York City.

was

announced that

This company on May 31 floated

through Merrill Lynch,
associates at a price of

$59,125 per share.
Power

Corp.

—Scheduled for Oct. 17 at lliOO a.m. at Morgan Guaranty

Bids—Expected to be received on Oct. 20.

Trust Co.

Motor Credit
was

Co.

reported that this company is develop¬

operations, which may include
possibly occur later
Office—Detroit, Mich.

ing plans for borrowing
the issuance
year.

of debt securities, and

Georgia Power Co.
it

with

was

the

that the company

reported

was

plans to

mortgage bonus due 1990
sometime in the fall. Proceeds—For capital expenditures,
etc. Underwriter—To be determined by competitive bid¬
ding. Probable bidders: Haisey, Stuart & Co. Inc.; Blyth
&

Co., Inc., Lazard Freres & Co. and The First Boston
(jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Salomon Bros. & Hutzler and Eastman Dil¬
lon, Union Securities & Co. (jointly); Equitable Se¬
curities

Corp.

Indianapolis Power & Light Co. (9/27)
April 18 it was reported that the company will issue and

$12,000,000 of 30-year first mortgage bonds. Under¬
competitive bidding. Prob¬

sell

writer—To be determined by

able bidders:

Halsey, Stuart & Co. Inc.; Lehman Broth¬

Goldman, Sachs & Co., and The First Boston

ers;

Corp.

Eastman Dillon,. Union Securities & .Co,;
White, Weld & Co., and Shields & Co. (jointly); Blyth
& Co., Inc.; Equitable Securities Corp.
Bids—Expected
to be received up to 11 a.m. New York Time on Sept. 27,
Information Meeting—Scheduled for Sept. 22 at 11:00
(jointly);

Exchange Place,

at the Chase Manhattan Bank, 43
City, Room 238.

a.m.,

New York

it International Mining Corp.
It was announced June 1, I960 in the 1959 Annual Re¬
intends to issue

with

connection

the corporation

$10,830,000 of 7% secured serial notes in
its merger with Canton Co. of Baltb-

which will be the name of the surviving corpora¬
that the notes will be issued shortly
par, and will mature at the. rates of $1,000,000 an¬
nually for one to three years, $500,000 annually for four
to nine years, and $4,830,000 the
10th year after the
merger. Office—535 Fifth Avenue, New York City. Un¬

more,

It is expected

tion.
at

derwriter—None.
Iowa

March

Electric

Light & Power Co.
Sutherland Dows stated that bonds

President

be ob¬
acquire the $10,000,000 required to finance 1960 construction. Office—
be sold

would

in order to supplement money to

temporary bank loans, to

tained from

Rapids, Iowa.

K.V.P.

Sutherland

Co.

Paper

May 11 it was reported that a secondary offering of com¬
mon
stock is presently being discussed. Proceeds—To

selling

stockholders. Underwriter

—

Lehman Brothers,

New York.

Laclede Gas Co.

$15,090,July
from later

May 10 it was announced that in addition to the

(10/20)
March 10 it was reported that $25,000,000 of first mort¬
gage bonds will be sold by this utility. Proceeds—For new
construction and repayment of bank loans. Underwriter
—To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.
and Merrill Lynch, Pierce, Fenner & Smith Inc. (joint¬
ly); First Boston Corp.; Eastman Dillon, Union Securi¬
ties & Co. and Harriman Ripley & Co. (jointly); Lehman
Brothers and Blyth & Co. (jointly). Information Meeting
Florida

tration

—

issue and sell $15,000,000 of 1st

the company anticipates

400,000 common share offering
Pierce, Fennpr
Smith Inc. and

this

Cedar

Ford

Underwriter

capital.

Power Co.

Idaho

March

Power & Light Co.

Florida
June

working

port of International Mining Corp. that

Inc.

Dynamics,

16 it

For

—

Byllesby & Co., Inc., Chicago, 111.

Meeting—For the convertible debentures,

March

plans to file

May 25 it was reported that the company

Corp.

April 29 the company asked the Michigan
Commission for permission to issue and

Dec. 9

Electronics

stockholders. Office—750 Third,. Ave., New
Underwriter—White, Weld & Co., New York"

selling

York City.

Texas.

March 28 it

(10/4)

is planning
to offer in October four security issues totaling $110,000,000.
$65 million first mortgage bonds will be sold in
was

■

Edison Co.

Consolidated

000,000 of new money.

common stock (par $2).
Proceeds—For purchase of certain

Bros.

Columbus 15, Ohio.

—215 N. Front St.,

Price—$2

share.

Meeting—Scheduled for Oct. 31.

Information

Nov. 3.

it Harcourt Brace & Co. Inc.
June 13, 1960, it was reported that a secondary offering,
of 500,000 shares of common stock is
expected to be,
filed, probably during the last week in June. Proceeds—,

new

it Columbus & Southern Ohio Electric Co.
June 13, 1960, it was reported that this utility plans the
sale of about 200,000 shares of common stock to raise

April 14 filed 3,401,351 shares of
per

(jointly); The First Boston Corp. Registration—Sched¬
for Sept. 26.
Bids—Expected to be received on

uled

•

Inc.; Shields & Co.; R. W. Pressprich
Loeb, Rhoades & Co., all of New
Bids—Expected to be received on Oct. 6.
Smith

financing in 1960 approximating $25,000,000 and
estimates that in 1961 it will require approximately $50,-

June

Thursday, June 16, 1960

^-Columbia Gas System, Inc. (10/6)
June 13, 1960, it was reported that the company plans
to sell $30,000,000 of debentures. Proceeds — For con¬
struction.
Office—120 E. 41st St., New York City. Un¬
derwriter—To be determined by competitive bidding.
Probable
bidders:
Merrill Lynch, Pierce, Fenner &

further

WonderBowl, Inc.

will

Kayes Aircraft Corp.
Feb. 12 it was reported that an issue

tures or

May 9 (letter of notification) 150,000 shares of common
stock (par $2). Price—$2 per share. Proceeds—For gen¬
eral corporate purposes. Office—137 South Ave., Fan-

•

City.

holders may get
•

York City.

Carl

May 19 filed 43,048 shares of common
pany

determined.

Boesch

the balance of the purchase price for
Manufacturing Co., Inc. stock; $350,000 to pay

Gas Co.

10 it was announced tnat the company
financing this year, but there would be

May

—To be

Waltham Precision

Union

Brooklyn

Continued from page 53

•

Financial Chronicle

(2626)

(11/3)

announced that the company plans regis¬

$12,000,000 of 30-year first mortgage bonds
SEC.
Underwriter — To be determined by

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; Equitable Securities
Corp., and Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.

000 of new

capital expected to be provided by the

bond-equity financing, $33,000,000 will come
sale

securities

other

retained earnings.

it Long
June

than

common

stock

and

from

»'

Island Lighting Co.

13, 1960, it was reported that the company

is dis¬

cussing the sale of approximately $20-$30,000,000 of debt
financing, probably to occur sometime this Fall. Proceeds
—For

construction.

Office

—

250

Old

Country

Road,

Mineola, New York. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co.

Inc.; W. C. Langley & Co.;'Smith, Barney & Co.
New York City.
.

and

First Boston Corp., all of
•

Long Island Trust Co.

May 26 the directors of this bank voted to recommend
the
issuance
of
61,413 new shares of capital stock

by the stockholders at
special meeting held at 8 p.m. on June 14, 1960, the new
shares are being offered to stockholders on June 14, 1960,
(par $5). Having been approved

the

basis

one

new

stock for

each eight

July 11. Price
—$23 per share; Proceeds-—To increase capital and sur¬
plus. Office—82 Seventh Ave., Garden City, L. I., N. Y.
Underwriters—A. M. Kidder & Co., Inc. of New York
City and Brown, Lisle & Marshall of Providence, R. E
shares then held, with rights to expire on

Volume

Number 5960

191

The Commercial and Financial Chronicle

(2627)

Louisville Gas & Electric Co.

(10/18)

Public Service Co. of New

April 27 it was reported that this company plans the
issuance and sale of $16,000,000 of first mortgage bonds,
proceeds—For construction.
Underwriter—To be de¬
termined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man Brothers
and Blyth & Co., Inc. (jointly); Kuhn,
Loeb & Co., American
Securities Corp. and Wood,
Struthers & Co. (jointly); Eastman Dillon, Union Se¬
curities & Co. and White, Weld & Co. (jointly); Kidder,
Peabody & Co. and Goldman, Sachs & Co. (jointly). Bids
—Expected to be received on Oct. 18.
Mercantile Discount Co. of Chicago

that this company plans the fil¬
its common stock. Office—Chi¬
111. Proceeds—For working capital. Underwriters

ing of 128,000 shares of

-L-H. M. Byllesby & Co., Inc. and Rodman & Renshaw,

both of Chicago, 111.
:

announced that the

was

Public

currently about

gage bonds

Proceeds

$103,000,000

per

costs of which
Office—De¬

year.

March

Enterprises Inc.
April 8 it was stated in the company's annual report
that it contemplates the issuance on or before March 31,
1961 of a bond issue in an aggregate amount not to exceed

$4,000,000. Proceeds — To finance river transportation
equipment presently on order and expected to be
ordered. Office—Cincinnati, Ohio.
Insurance

Co.

March 16 it was announced that the company

offering in June. The offering
shares. Price—To be sup¬
by amendment. Proceeds—For expansion. Office
Broadway, New York City. Underwriter — R. F.
& Co., Inc., 38 Broadway, New York City.

Nedick's
Nov.

expects to

its first public

will consist of 75,000

Dowd

common

Stores, Inc.
reported that

the company is contem¬
plating the placing in registration of 17,000 shares of
was

stock.

common

About

66%

the

issue

will

sold

for the company's account and
ance

the remaining 34% bal¬
will be sold for the account of a selling stockholder.

Underwriter—Van Alstyne, Noel & Co., New York.
-

Northern States

May 11 it

was

Power Co.

reported that the company plans the is¬

remaining balance, from the proceeds of
borrowings.

May 11 it
to

pipeline

distribution

systems,

plans

$30,000,000 of first mortgage bonds and $20,000,000 of preferred stock later this year.
Pacific

Jan. 29 it
at

least

Power

was

Light Co.

announced that the company

plans to issue

$20,000,000 of securities, the date and form

which will be announced at

later date.

Proceeds—To

retire

$20,000,000 of unsecured promissory notes, to
mature on or prior to July 31, 1961. The notes will be
issued

to finance part of the issuer's 1960-61 construc¬
expenditures, which are expected to total about
$61,000,000. Office—Portland, Ore.
V

tion

•

Panhandle Eastern Pipe Line Co.

April

was

reported that this company might sell

about $65,000,000 of debentures, possibly in the third
quarter of this year. Underwriters — Merrill Lynch,

Pierce, Fenner & Smith Inc. and Kidder, Peabody & Co.,
both of New York.

Potomac

Electric

Power

bidding. Probable

Co.

Co.,

Inc.;

The

First Boston

it Scantlin Electronics Co.
June 13, 1960, it was reported that the filing of about
$2,000,000 of common stock is being discussed, with no
time indication as yet. Office—Los Angeles, Calif. Under¬

writer—Carl M.

Loeb, Rhoades & Co. and Paine, Webber,
(jointly).

Jackson & Curtis

summer.

secondary offering might
—
Merrill Lynch,

Pierce, Fenner & Smith Inc. and Harriman Ripley & Co.
Inc., both of New York City.
Southern California Edison Co.

March

stated in the company's annual report
$30,000,000 issue of series L mortgage
bonds sold to underwriters in January, 1960, an addi¬
tional $55,000,000 to $60,000,000 will be needed to com¬
plete its estimated $123,000,000 construction program for
1960.
This financing is dependent upon market condi¬
that

was

besides

(8/23)

the

tions, and will probably be some type of debt security.
Southern

the

Counties

and

bonds.
Underwriter — To be de¬
competitive bidding.
Probable bidders:

mortgage

termined

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,
Fenner & Smith Inc. Bids—Tentatively

expected

Information Meeting—Scheduled for

26.
a.m.

July

July 22 at 10:00

EDT at the Bankers Trust Co.

Southern Natural Gas Co.

stated in the company's annual report that
expects to provide for the payment of
certain outstanding notes through the issuance of first
was

company

mortgage bonds and other
of the issue

issues

was

debt securities.

The timing
Office

not stated in the report.

—Birmingham, Ala.

Smith
•

Inc.

Southwestern

Bell

directors

Telephone Co.
this

company

(8/2)
recommended

$100,000,000 debenture issue, subject to approval by
regulatory authorities. Proceeds—To finance an expan¬
sion and improvement program over the next five years.
Underwriter—To be determined by competitive bidding.
Probable

Stanley

Halsey, Stuart & Co. Inc.; Morgan
Bids—Expected to be received on or
to 11:00 a.m. EDT.

bidders:

Co.

about Aug. 2 up

million of an as yet undetermined type.
Underwriter—To be determined by competitive bidding.

Rauscher, Pierce & Co., Inc., Dallas, Texas,

Probable bidders:

It was

$15

Halsey, Stuart & Co., Inc.; First Bos¬

ton

Corp.; Dillon, Read & Co. and Johnston, Lemon
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Smith '(jointly); Lehman
Brothers and Eastman Dillon & Union Securities & Co
&

Co.

and

Stone

Webster Securities Corp.

(jointly).

offered

the

Spring of 1961. The type of bond issued

will depend on market conditions. Proceeds—To finance

construction of new generating capacity. Power Financ¬
ing Officer: G. O. Wessenauer. Financial Advisor: Leh¬
Brothers. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc., First National City Bank of New York, Equitable
Securities Corp. and Smith, Barney & Co. (jointly); First
Boston Corp., Lazard Freres & Co., Eastman Dillon,

man

Union

Securities

Co.

and

Salomon

Bros.

Hutzler

(jointly); Chase Manhattan Bank and Morgan Guaranty
Trust Co. of N. Y. (jointly); and Blyth & Co. and J. C.
Bradford & Co. (jointly).
Trans World

April 8 it
to

Airlines, Inc.

announced that the company plans to offer

was

its

stockholders $100,000,000 of subordinated income
debentures with detachable common stock purchase war¬

rants, and Hughes Tool Co. (parent) will purchase not
only its pro-rata portion ($78,000,000) but also enough of
any debentures not taken up by others to provide TWA
with

least

$190,000,000

$100,000,000. Proceeds — Together with
proposed
private
placement
which
is

presently being worked on by
will be used for expansion of
Underwriters—Dillon, Read &
& Co., and Lehman Brothers,

this company's bankers,
the company's jet fleet.
Co., Inc., Lazard Freres
all of New York.

Union Electric Co.
March
tive

16 it

announced

was

by Dudley Sanford, Execu¬

plans an offering
to $35,000,000. Proceeds—To meet construction expenses. Office
—315 No. 12th Blvd., St. Louis, Mo. Offering—Expected
of

Vice-President, that the

debt

the

securities

latter part of

Union Trust Co.

the

company

$30,000,000

range

this year.
of

Maryland

April 21 directors of this bank announced plans to boost
its capital stock by 100,000 shares to 500,000 shares, $10

bank

The

par.

offering

for

subscription

present

hplders of record May 31, 100,000 shares on the basis of
one new share for each four held with rights to expire
on

June 20 at 3:30 p.m.

EDT. Price—$46
capital and surplus.
Sons, Baltimore, Md.

Utah Power & Light
June 1 it
and

was

share. Pro¬
Underwriter—

per

increase

Brown

(9/14)

Co.

reported that $17 million of debt securities

$10 million of

common

stock is expected to be sold

sometime in the third quarter of this year. Proceeds—For
construction purposes and repayment of bank loans. Un¬
derwriter—To

determined

competitive

bidding.

Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co.
and First Boston Corp, (jointly); White, Weld & Co.;
Webster Securities Corp.
(jointly); Salomon
Hutzler; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
Stone

Bros. &

ly); Lehman Bros.; Bear, Stearns & Co. Bids—Expected
on Sept. 14.
Information Meeting—Sched¬
uled for Sept. 12 at 2 Rector St., New York City.

Virginia Electric & Power Co. (9/13)
5 it was reported that approximately $25,000,000
mortgage bonds will be offered for sale. Under¬
writers — To be determined by competitive bidding.

Feb.

first

Probable

bidders: Halsey, Stuart & Co. Inc.; Salomon
Hutzler; White, Weld & Co.; Eastman Dillon,
Union Securities &
Co.; Stone & Webster Securities
Corp. Bids—Expected to be received on Sept. 13.
Bros.

Waldbaum, Inc.
11 it was reported that public financing is being
contemplated by this supermarket chain, No confirma¬
tion was obtainable. Office—2300 Linden Blvd., Brook¬
May

lyn, New York.

^-Waterman Products Co., Inc. 1
15, 1960, it was reported that approximately 100,000
common stock is expected to be filed shortly.
Office—Philadelphia, Pa. Underwriter—Stroud & Co.,

June

^ Southern Nevada Power Co.
June 15, 1960, it was reported that in order to meet $8,300,000 of property expenditures scheduled for 1960, the
company has arranged a $6,000,000 revolving bank credit.
It will borrow about $5,100,000 under this agreement by_
October, at which time it expects to sell about $5,500,000
of bonds and $3,000,000 of an undetermined type of stock,
with preferred being considered, possibly with rights to
purchase common shares at specified prices. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc. Eastman Dillon, Union
Securities & Co. and Kidder, Peabody & Co. (jointly);
White, Weld & Co.; Merrill Lynch, Pierce, Fenner &

May 4 it was reported that the company plans the filing
of
60,000 shares of common stock.
Office — Austin,
Texas. Registration — Sometime in June. Underwriter—

about

offering,

to be received

(7/26)

reported that the company contemplates
sale
of
approximately $22,000,000

was

issuance
first

Co.

Gas

Steck Co.

Co.

was

expected to be about $50,000,000, for
Fall.
May 13 it was announced that
about $50,000,000 of additional revenue bonds will be

Underwriters

state'd in the company's annual report it
is anticipated that their 1960 construction program will
amount to $39 million and there will be further financing

March 21 it

public

sometime

Alex.

reported that

was

this

made

Authority

announced

ceeds—To

Schlitz & Co.

(Jos.)

March

^ Philadelphia Aquarium Co.
June 15, 1960, it was reported that the company plans
to sell about $2,000,000 of debentures and common stock
to finance an aquarium in Fairmont Park, Philadelphia,
which would be city-owned and company-operated un¬
der a lease. Underwriter—Stroud & Co., Inc. of Phila¬
delphia, Pa. and New York.

Blyth

Inc.; Blyth & Co.; First Boston Corp., Eastman Dillon,
Union Securities & Co. and Merrill Lynch, Pierce, Fen¬
ner &
Smith (jointly); Lehman Brothers and Salomon
Bros. & Hutzler (jointly).

the

sell

competitive

this year. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

April 4 it

announced that this company, in order to

Corp.
company's annual report

the

Diego Gas & Electric Co.
it was reported that $25,000,000 of bonds is
expected to be sold sometime in the third quarter of

additional

Lighting Corp.
was

additional

that, pursuant to August, 1959, au¬
thorization from Congress to have $750,000,000 of rev¬
enue bonds outstanding at any one time, it plans its first

short-term

Jan.

Electric

Stuart

(jointly);

May 16 it

series B bonds ma¬
turing in 1961 as is not financed by the sale of the com¬
pany's 39,165 shares of its convertible cumulative pre¬
ferred stock, series E, 5% (par $100) will be financed
from the proceeds of sale in 1961, subject to market con¬
ditions, of $10,000,000 of its first mortgage bonds, from
depreciation and retained earnings and, to the extent of

stated

Inc.; Kidder, Peabody
White Weld & Co. and Shields & Co. (jointly);
Loeb & Co.; Salomon Bros. & Hutzler, Eastman
Union Securities & Co., and Equitable Securities

1962 and

the refunding of $6,442,000

Gas

was

Halsey,

Orange & Rockland Utilities, Inc.
*-•'
April 18 it was stated that the company presently ex¬
pects that such part of its construction program through

finance

competitive bidding. Probable bidders:

San

.v.

Pacific

maturity of not more than 30 years.
all or part of company's short-term

determined

April

$35,000,000 of 30-year first mortgage
be determined by competitive"
bidding. Probable bidders: Halsey, Stuart & Co., Inc.;
Merrill Lynch, Pierce, Fenner & Smith Inc., Kidder,
Peabody & Co. and White, Weld & Co. (jointly); The
First Boston Corp. and Blyth & Co., Inc. (jointly); Leh¬
man Brothers and Riter & Co.
(jointly); Equitable Se¬
curities Corp. and Eastman Dillion, Union Securities &
Co. (jointly). Bids—Expected to be received by Dec. 6.

■

To pay

Information Meeting—Scheduled for Sept. 15
at the Chase Manhattan Bank, 43 Exchange

bidders:

bonds.'Underwriter—To

any

(9/20)

a.m.

March 11 it

(12/6)

(Minn.)

sale of

and

suance

Co.

that the company has filed an application with the New
York State'Public-Service Commission for * the .right
to issue $10,000,000 of new preferred stock. Underwriter

& Co.,
Kuhn,
Dillon,
Corp.
Corp.

Midland

plied

with

—

ark, N. J.
at 11:00

Morgan Stanley & Co.

—198

& Gas

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Loeb & Co., and Lehman Brothers (jointly). Bids—Ex¬
pected to be received on Sept. 20 up to 11 a.m., in New¬

—To

Electric

indebtedness incurred for construction. Underwriter—To

troit, Mich. Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;

Mohawk

Service

May 18 directors of this company took preliminary steps
sale of $50,000,000 in first and refunding mort¬

for the

Rochester

plans to

company

Proceeds—For construction,

debentures.
are

Tennessee Valley

Hampshire

the

company's annual report
that short-term borrowings will increase progressively
during 1960 until further permanent financing is under¬
taken later in the year.
The timing, type, and amount
of this financing has not been determined.

(8/23)

to market in August for the sale of $35,000,000 of

come

stated

was

Place, New York City, Room 238.

Michigan Bell Telephone Co.

May

be determined by

May 25 it was reported
cago,

April 4

shares of

Inc., of Philadelphia, Pa. and New York.
^ Western Maryland RR.

bidding.

company's initial public financing, is exoected
shortly. Office—7 East 42nd St., New York City. Under¬

ing the

writer—Equity Securities Co., 39 Broadway, New York
City 6, N. Y.
"

Salo¬

& Hutzler.

-A-Western Pacific RR.
13, 1960, it was reported that this Road is contem¬
plating the sale of $3,720,000 of equipment trust certifi¬
June

cates, probably sometime in July. Underwriter—To be
determined by competitive bidding.
Bidders: Halsey,
Stuart & Co. Inc. and Salomon Bros. & Hutzler.

* Western Printing & Lithographing Co.
15, 1960 it was reported that an undetermined
amount of common stock is expected to be filed some¬
time this summer. Office—1220 Mound Avenue, Racine,
Wis.
Underwriter—Goldman, Sachs & Co.
June

Winter

Park

Telephone Co.

May 10 it was announced that this company, during the
first quarter of 1961, will issue and sell approximately
30,000 additional shares of its common stock. This stock
will be offered on a rights basis to existing stockholders
and

may

not be underwritten by one or more
Future plans also include the sale

brokers.

Telephone & Electronics Corp.
reported May 18 that a "Reg. A" filing of 52,980
shares of this firm's 25 cent par common stock, constitut¬

Halsey, Stuart & Co. Inc. and

Bidders:

Bros.

mon

securities
.

(6/29)

13, 1960, it was reported that this Road is planning
the sale of $3,700,000 of equipment trust certificates on
June 29. Underwriter—To be determined by competitive
June

$2,000,000

of bonds

in the second quarter of 1961.
Ave., Winter Park, Fla.

Office—132 East New England

Yardney Electric Corp.
pany

expects to file an as

common
W T

stock. Office—40
m>*

vin-nrt

sometime in July this com¬
yet undetermined amount of
Leonard St., New York City.

May 9 it was reported that

A/4

I mil w ii«w i*wi w

i*
56

-si

sought in the 17th and

Down-to-Earth Observations

The
ine

norarv
P°r«ry

AU these diHicu:Ities mean not

Continued from page 15

1.1<

the

•iiV/i

that the economy

changes,

nonagricultural

sunnose

the

agricultural.

the

than

larger

Fven

Jhat measijrements cof growth ar

futlle and fruitless, but that to

segment

the

and

nonagriculture. Now

for

rate

growth

rate

stays

in both agriculture and

the same

5lnLlSnn 'about
jectivity, and sophistication about
economics
and statistics

both

nonagriculture, the new average
of
growth for the whole
economy will be JULvOi- wX the AAVA*.
nearer JVAAW nonCyUiiwiiij'
W AAA,
MV

J"rJfhy

rate

(

+i—

agricultural than the agricultural
rite, and therefore higher than
before. This kind of thing is in
fact happening in Russia. In the
United States, on the other hand,
the opposite is happening. Agrimi

•

j.i„

where

services

this

and

slower;

growth

down the

pulls

in every

the

than

higher

part of the

yet for our average rate

direct

ond

other

Characteristically,

individuals,
Private institutions, or general
social forces break the paths and
provide
Qnce

uutc

the

initial

vision
viaivu

uic

ins

momentum,

0f
ui

important
juifui tmn

an
cm

and

currenc

once

are

our

toward

way

„

attaining

words,

growth

Russian

™re raPid because they are still
in the area where improvement is

easy and the way has been shown,
whereas we are more heavily involved in the difficult tasks of expanding productivity in medicine,
...

pdupation.

innrrnlicm

pngineer-

journalism, education, engineerfn§' an<^ other services.

Ji
v' S;:

From

was

1.5%.
was

From 1948 to 1957 the
per
year,
again

2.0%

schemes.

schemes

have

future—certainly
century. We should

this

wiited and shabby as the proverbiai saloon sandwich, as they are

begrudge

pushed

decade
to

means

after

reach

decade

whatever

goals
over the

have most recently come

horizon

or are most rapidly being
attained through private forces.

Much

the

economic

character.

current

growth

All

sorts

emphasis
of this

plans

are

the

whatever
their

out

average

absolute minimum, and pref-

cycles.

several

Measure-

1948

and

the

1957

an-

nual rate of increase was 4.4%, a
little higher, but within the range
of statistical variation that characterizes this series.
Real private output per man
hour worked increased from 1889

trough

and

end

peak

peak to

;:
u

from

trough. Peak to peak

measurements

we go

fictitiously low rate if

best, for peaks

are

successive

cycles

trace

the

,'ftj

growth

fairly smooth and regular fashion,

>'Jr.

similar

For

i!!.
*;v
'

!''{]''

economic

course

often

spending
hand, are

same

other

described

wanting growth.

for

reasons

We could afford

the spending, the argument runs,
if we only had growth; and the
implication is that those who paint

these

glowing pictures of what
growth could do to expand Fed-

may

levels

reasons,
the periods
measuring growth must
not begin or end at the peak of

boom

war

post-war

the

limitations

These

trough of

proper

periods prevent making —
honestly—a number of comparithp

qono

npriod

World

sinre

thP

War

that

would

Interesting! In"that"period"there

v>;,'

have been only tv,J peaks,
three

fii

1953,
t,.

and

1957,

iQ^i?

nnp

the

1948

ticians

1957.

have

meaningful
growth, namely
a

While

this

some

poli-

that

from

1953

only be described
unwary, unwise, or unscrupucan

version

war

was

peak and

neither^
neither
a

mmMri

nWaPp?ai°n«?bUh

naiU'ally lnyte 0th.1r
,Q^?

■->:
V

/s.
uf

•

double

■

cvtl

growth in real GNP

the earner

acic

penod;

basis, it is double in the
later period. You pick your
party,
then you pick your
periods; and
so
you
"prove" that your party
has

done

other

twice

well

the

timing

are

rates

different

coun-

>
i
v

;;;*v
•'.J/ H

was

pression and pushed up by
booms- From 1948 to 1957

war

otner

?Jay

country

de-

the

fects"

ef-

"demonstration

expansion

u s s

economic

vastly

may

over-

emphasized. While her 6 to 8
annual
rate
of growth

per

two

Compari-

covering the same period for
countries

may,

misleading.

;w 'l
m
'

therefore, be
—

and

imnnrt

pynnrt

year.

economy

Imperatives
that a strong

Growth

the fact

from

Real

^he

arige

cent

at 2 per cent or 5 per

grows

per

growing

economy,

with

ec0nomy

high

per

total

production

fers

impressive, other

coun-

our

have

and

doing better.
progress
of West
are

Germany, Japan, and Mexico, for
example, is far more striking. As
a
matter
of
fact, Russia itself
grew faster under the Czars during

the

World

before

decade

the

First

War.

TJvmrt

But

years

economic

The

requires growth.

tern

recent

tries not under Communist domi-

itself. In other words,
vitality of the sys-

is to sustain

the continued

cent

beyond such technical mat¬
desire growth to promote

private ends and national purft is that simple;

poses

want

because it enlarges the
opportunities of our children, begrowth

expands

cause

capacities
choos-i

our

to pursue goals of our own

because it increases the range

ing

choices

0f
is

open

because it

us,

outlet

rewarding

for

our

creative energies and imagination
Nppd(,

eorin7

arfum|t

owan

invigorates

achievement

because

if we grow

faster

and fuller lives

The Soviet threat is real and
has many points of thrust.
It

would

governmental

perilous

the danger.

mate

underesti-

But

our

how

economic

own

Some people fear that

growth?

ordor

of desire

advocates' tastes

enforce the

other

grow

to demonstrate that our

syn¬

tern is not headed for inevitable
collapse, but will survive even in
abroad that a world of oppression and hos-

others

through
machinery.
It
is
on

reminiscent of groups
used government power

people's

rapid Soviet

and rapid P°Pulatl0a
There

are many other indicators
growth:
length of the work

books,

burn

but

tility.
How

our

Grow?

out

increase ixus&ian m
mucasc Russian mill-

ill
growth will

the

facts

AAlirf

court

the

XX 71

confronted

past

with

decade

/»

economic

•

Tl.-i.

there is

policy. But

to construction of schools, improve-

disagreement over the
relative
imp0rtance of growth as compared

'tod ies''that flnseT Still oVerffel? possible ^ents in teachers'salaries, superwj^ave looked at s^ffice to illu advlrse "demonstration effects" hlghwa/sfbmlt' 11?creases m tl?e
^ate Yfe nat^
of moid Sov^devefonmenttbat
s\"Pp?rt °f research. expansion in
nature of the problems of rapid boviet development—that ald to the needy, diseases con-

with other goals and even more
disagreement over the means by
which growth should be pursued

tary potential
growtn: length of the work tary potential so
so

ex^'plT

greatly

But the six

•

quered'

Ive^this
ord

shows

toief look at the
the

allegations

falsitv

that

slowfng dLn

our

rec-

economv

allv

such

ciose

judged bv

ards'

Indeed'

great

range

eood

verv

historical

stand-

All

considering

changes

that

have

Ejrs-t

that

past

chooid

have

nointed

commanding

out

lead

the over Russia in terms of both total
taken

and

per

redevelopment,

Growth

majo?goals

only

one

of several

economic policy.

achfevtae national hosPitals bailt> ®r lndee.d
ai?d economic anythl"gv else. Growth in public
theffi fe^r-merit sohe^
servlces has been enormous in the

ooliticallv

as best we are abIe to "ead it at than can be given to them here.
when

urban

wav

carelels strength

recenrrecord consid^atio^

The

capita

output.

Even

decade'

The

Economic freedom, stability of
employment, stability of the general
price level,
economic ef""""el-social- ficiency, and economic security

Xlniivewthl? w'e don^v^hav1!.1 a"
imP°rtant P™Perly Ca";
Plaintlvely that we don t yet have ceived and pursued, economic
everything that they thi"k

growth

compatible

with

all

fvate^rmlre^i!nT1ntereqthfn incompatibleg0al^; but 11 beS°Tno
-heSe 0t+
PrlY
opulence dulls interest in
when pursued too
wi

revolution.
The Publ'c squalor argument
"s'.7.n fact>. SIm.P
this decade's

ardently
or
by
inappropriate
means. Policies to promote growth
0r any other goal must reflect a
battlecry of socialism, which-in- compromise among competing

and the major adjustments Russian growth rates continue
that the economy has made with higher than ours, the absolute
flexibility and resiliency during gap between us will continue to
the Past 15 yeara. the record is increase for some time to come.
one which should renew our faith
Second, we don't know how
jn
vitality of our system. Per- large the gap really is — except

so£,'a

haps

grow

faster

and attempts to achieve greatly
accelerated statistical growth rates
may be costly in terms of human
hardship. New machines may reAiding the Economic Develop- duce prematurely not only the
ment of Other Nations is another value of old machines but also
reason often advanced for trying the value of human skills acquired
*° accelerate our own rate of through long training and experigrowth. This is a laudable and ence. New products may reduce
continuing goal of public policy, the incomes of those producing
But it does not follow that in- old products. New industries in
creasing our own rate of growth new locations may uproot homes
and raising our own level of liv- and communities near old indusing will have much influence on tries. Unless the costs of economic
the rate of economic
progress growth are equitably distributed,
elsewhere.
it is
only reasonable to expect

the

our

"to

should,
be

and

can,

and

better;

but

continued"

will
that

part

growth story.

that it is large. As was mentioned

earlier,
sons,
are

international

Economic

important

policy

growth
goal
o—

since

of
v~

the

has
our
—A

been

founding of

the

impordiminished
an

by our remarkable progress.
deed, economic growth has

national

comparidata,

had

difficult

Russian
or

even
a

business.

Why Grow?—Economic Growth

^ a P£ak-to-trough or a cently become
period.

trougn-to-peak

sons

however,

rate of

own

our

rtm.

growth. Our import and export
policies, for example, are vastly
more important to underdeveloped
countries than whether our GNP

people's
the the Russians will "catch up" to us group wants to burn other pe<
Eor a variety of reasons there
average annual rate of increase someday and so fulfill the tail fins. The argument about is~general"agreement that ecowas !-9%, despite high taxation Khrushchev boast about burying "public squalor" would be laughed
n0mic growth is an important goal
^
11J increase.
us.
Other s fear that
Allf
■?•£
AAA^r
"f
"f Vl

fnie?a«v70rUlJited States, 1948 Republic. It remains
-if 18 8 va r Peak"to-peak tant goal, in no way
period for measuring growth. For
some

■

1929

As A Policy Goal

treacheries

growtn

individuals,
after
they please. The

(when the data begin) to 1957
a rate pulled down by

especially hazardous in comparing

' «

to
use

1.6%,

party.

The

-ir0W

ioI oWlth
j°J
°"e,

p
pr
the n
other

J'f

cyclical peak, and

trough nor a peak. Such
trough

To/a

can

W6. will be better able to provide
Moreover, we desire growth for
a greater variety of public serv- the preservation of our way of
lces and
eliminate what we life. By continued growth we
now re£ard as poverty.
demonstrate to ourselves, and permerit close examination.
One of the more pretentious haps to the world, that our sysversions of the "needs" argument tern of free enterprise and repreImportance of the Soviet Growth is that we have shameful public sentative government is indeed
Threat
squalor in the midst of vulgar strong and able to fulfill rising
* The
Soviet Threat is one of private opulence. This argument aspirations and to enhance the
these.
has a strong authoritarian smell, dignity of free men. We need to

™WaI?' 01j unscrupulous piace

v«.

disposable personal income
capita measures the income

available

Thus, there is

^rsiofn0^ro9u4JhWia9S43a IfhT'
trough, 1953
both

Real

presented

with

1953

1959,

•ijll

2.4%, about 40%

was

higher.
per

thp

compariof the growth rate from 1947

sons

1948,

nnair

requirements for

measurement

iQdfl

middle

and only one period that meets

one

thp

wac

War boom.

Korean

the

and

saving which must flow into capital accumulation if the economy

name

Even

this

ond

M4-f:

of increase

annual rate of increase from

time

v *1

5°%

average
annual
rate: of
1.7%.
From 1948 to 1957 the annual rate

taxes, to

reconversion.

variation

well-

what

achieve depends primarily upon
how we allocate our resources to
vari0us ends, and on the kinds
of
international and
domestic
policies we pursue, rather than
—..
.._
-

of economic growth.

in the

Real output per unit of labor sions of growth cannot be taken
and capital combined, useful as a seriously should not blind us to
measure of overall efficiency, in- the fact that there are a number
creased from 1889 to 1957 at an of important considerations that

for

used

staifaf! Cyclical htherT 3'1%' ^

lm-

But

development.

not

people
achieve

src»eTy»r^d

ft!

and

ana

far

are

capita income such as ours generates a large volume of private

Between

apart

factors

these

economic

being in return for the privation
and hardships they have suffered

the

banner

they

material

plans,

the

under

Russian

rise

may seem

forth

not

visible

the

Some
become

<■:$ 4

Capita.

1957 the annual rate of
increase in real GNP per capita

these

nation

cyclical,
and
erratic
fluctuations. They must, for example, cover a full business cycle

iMi-M'■

{»*$

Per

GNP

political

ous

The

erably

)>'»

Real

1909

—
pmnomio

other

spending.

time-span,

proper

as an

npdjte

put

seasonal,

Hi.

...

annual rate of growth in total
real production was 3.8%, somewhat higher than the long-run
rate.
j

institutions

r,+v1Pr

50% of their labor portant than the direct.and in^
That Jg ^ a(ter wg havg force in agriculture; we have only direct aid that we ran give^ This
tten Qver the hm b
private about 8%. Our employment is ex- is not to unde™!\™
,hb our
g~
„nd„
and
at
panding in services, where 1m- mficant
contribution that
a
brisk
'pace, urgent demands provements in output per man foreign aid, investment, and
arise that the government ex- h°ur are aloWpand
™™dVu £ technology can make to^^orld

growth, with little or no analysis
of the way they might promote
growth—except growth in Federal

meas-

our

growth is the problem of

enough

V !

sues'inHhetTqu^X oTa^n-" proximately

ments must be made at times far

'{[

many

whatever
criterion is used. Like every kind
of growth, economic growth proceeds at an uneven pace. Measure-

and

agriculture

Industrial production, as measured by the Federal Reserve
Board Index, increased from 1919
(when the index begins) to 1957
at an average annual rate of 3.7%.

ures
a

recent record in relation to the

emu

somewhat higher.

Another affliction of

long term record.
long term record.

rate

to be less than theirs.

diversity

lts more highly valued output per
*

large departures above and below
it- Between 1948 and 1957, the

economy,

>i.

particular attention to the

paying

PaY*"° Pa

course
course

a
a

underveloped countrie , t
of languages, cultures,

many

political
p

has been fairly stable in spite of

Russian rate

•••

through
tnrougn

land, the extremes of ignorance m

and

industrv
urausuy

are

growth

1960

Thursday, June 16,

with
wim

Real Gross National Product
suddenly we become impatient
from 1909 to 1957 grew at an an- f0r a magic carpet to put us there i In short, there is no possibility
nual compound rate of 2.9% per instantly. Our impatience is ex- that the Russian economy will
year. The long-run growth trend pioited by those promoting vari- overtake ours, at any time in

figures on our average rate of
growth, even though the change
is
obviously
a
good
thing.
It
would be possible for our rate of

» *

« > •

oolitics
Pontics

employment

productivity

low

able to shift resources into things

»>

growth

economic

culture here has an extraordinary

[ ;< fi

elsewhere. Furthermore, they are
transferring masses of people out

large rate of growth,

1i.

•

issue

has

cen-

issue+ot economic growtn
entered the arena of contem-

Ui'

18th

turies.

aii'

Chronicle

The Commercial and Financial

(2628)

iwTHi'niTiini'filif" WtfWM "Tf Jr*^ tM--

and

good

unrewarding

Whether

We don't know
GNP

one-half

one-quarter of

ours

ours.

international
comparirates of growth can be
more misleading than com-

Third,
sons
even

parisons of levels of output. The
Russians, starting from a lower

In-

economic base and

re-

postwar reconstruction, should be

political rally- expected

ing cry, accompanied sometimes
by demands that the government

revert to the mercantilist policies
by which economic growth was

percentage
the

already

■

have

period of

fairly

high

rate

expansion,
able to take
accumulated technology

Moreover,
over

they

are

developed

and

exploited

tellectually bankrupt after more
^ban a century of seeing one after
apotber of its arguments for socializing the means of production
demolished—now seeks to social^ze
results of production.

goals.
Growth

The problems of world economic
development are formidable. The

strong

pressure

population

arable

its

entails

resistance

certain

costs,,

growth

and

accompanying changes,

get

high

rates

growth

Volume

191

Number 5960

The Commercial and Financial Chronicle

through more rapid capital ac¬
cumulation
means
that
people

tas'for

them.

must save more, either voluntarily

his childen; to encourage
initiative, independence, and in¬

tegrity;

tion

compulsion.

In the

Soviet

Union people are forced to sacri¬

current

fice

consumption
and
liberty to meet targets of capital
formation imposed by the authori¬

and

preserve

the moral worth of the
and

our

ideals

approach

justice

enlarge

individual;
closely to

personal freedom,
fair play, broad and

and

economic growth, compulsions and

equal opportunity, the rule of law,
and mutual respect and charity.
Growth requires a flexible and

depressed levels of consumption
costs which they would not

freedom

willingly

dustries

much

ties. As

Americans want

are

except in dire

pay

emer¬

gency.
A

variety

adaptable

economic

system with
experiment. New in¬

must

spring
up,
and
others must decline. New methods
must be accepted and old ones dis¬

of recipes for
Labor and capital must
in current vogue. Most carded.
shift easily and cooperatively in
of them are hackneyed antiques,
spruced up a bit with new phrases' response to economic rewards and
great

growth

and
the

two

are

served

under

penalties.

main, these recipes represent
fundamentally' different ap¬

abundant

new

names.

mercantilism

proaches:

and

eco¬

ideas, a
willingness to take risks, and the
new

speedy adoption of successful

nomic liberalism.

methods

In many ways the debate about
economic growth today is similar

rate of

condition for

new

high

growth.

The

ideas

new

centuries

how best to promote the

ago over

by a high rate of saving, through
which new equipment can be fi¬

wealth of nations.

The mercantil¬

ist approach of the
centuries was

17th and

18th

engineering

ap¬

nanced

also

and

put into

contributes

Saving
growth even
use.

proach.

where

lation

volved, since it makes possible a
larger stock of plant and equip¬

The government by de¬
tailed design and elaborate regu¬

economic

impose

growth
laws

attempted
coordinated plan of
society.
Sumptuary

life

prevent

frippery

and

waste, public monopolies to chan¬
nel

investment

wisely,

detailed

regulation of labor and trade—all
were part of the scheme of

these

things. Mercantilism gave
economic

liberalism—a

way

biological

approach to growth with the
ernment
cultivating
imposing it.
The

great

logical

approach,

Great

Britain

States

record.

whether

not

the

bio¬

especially

and

matter

gov¬

growth,

success

the

remains

United

historical

seen

basically liberal ap¬
proach will give way to a rising
our

tide of mercantilist reaction.

Attacks

Our

Today,

school

one

the modern
the

Neo-Mercantilists

growth

thought,
say that

mercantilists,

government

should

massive

the quantity and

create

increases

diversity of

ernment services

gov¬

into collective

use.

The opposite school of
thought,
the supporters of an
open society,
hold that the kinds and levels of

public

services

mined

really

want

should

the

basis

deter¬

what

government

pro¬

duce, that each governmental ac¬
tivity should be justified either
on

cost-benefit

sound

principles

grounds

social

respon¬

sibility, and that government
best

promote

which

the

can

growth

release

creative

by policies
give effect to

and

energies

private

citizens.
the

factors

percentage

over a

span

understood,
growth

has

past

accumulated

knowledge do tell

government

best

can

growth.
•

cultivate

The underlying forces that pro¬
national
economic
growth

basically

the

account

for

that

same

economic

the

dividual's desire for
more secure

those

individuals.

progress

in¬

higher and

standard of living for

himself and for his family is the
basic stimulus.
To this end he

studies,

plans,

invests.

pro¬

"'Second,

rewards

induce

provide

producers

private

them

for

sufficient
direct benefits to induce private
individuals to buy them.
sale,

Sums

offer

not

Ten

Ten essentials of

ernment
as

program

works,
searches

saves,

out

and
new

Punitive rates applied to

narrow

podge

a positive gov¬
for growth are

follows:

(1) Orderly Government. Peo¬
ple must be free to pursue their
private affairs — to work, save,

invest, enter into contracts with¬
out fear of fraud, confiscation, or
violence.

utilize
will

skills

his

the

utmost

obtain maximum growth.

Public

policy should be aimed
eliminating discrimination in
education
and
employment,
whether it results from color, re¬
at

class.

birthplace,

sex,

social

Our economy must be open

Price

(3)

Stability.

Level

inflation

deflation de¬

economic efficiency, dis¬
resource allocation,
and re¬

stroys
torts

growth. Monetary, budget,
policies should be

debt

conducted

such

manner

promote reasonable stability of
the general price level.
(4)

Stability

Employment

and Income. Occasional mild fluc¬

tuations

activity
much

In fact,
be said

the level of economic

not

are

all

yet

avoidable,

wish

otherwise.

the surest thing that can
about our future growth

rate is that it will fluctuate.
national

tively

But

policies must deal effec¬

with

recessions

should

directed

im¬

toward

proving the quantity and quality
investment, releasing incen¬

fare

involves

non-material

both

which

conforms

Competition is the lifeblood of
free
tem
of

economy.

the

keep

sys¬

strong and growing the lines
into industry must be

entry

kept

and monopolistic bar¬

open,
to

nated.

positive

elimi¬

must

progress

nated.

activities

Regulatory
government should

protecting

the

should

not

competition

allowed

and

trade

vironment

for

Inter¬

Trade.

address
Annual

cial

can

pro¬

time

one

our

fundamental

seeking
economic
growth—is to provide expanding
opportunities for every individual
to realize his own potentialities to
the utmost and to open wider vis¬
<

The

industries

ficers

also
more

trade

abroad

barriers

will

Governmental

Growth.

nomic

Hornblower

ber,

growth

growth.

pro¬

Growth involves

change.
When the government protects the
status quo or insulates particular
groups of business, labor, or con¬
from the

sumers

change,

of effects

causes

retards

growth.

Many pernicious and unwarranted
to

Moseley & Co.; Paine, Web¬
Jackson & Curtis; Reynolds

securities business. Of¬

Pollock &

Co., Inc.; Hirsch & Co.;
Co.; Gregory & Sons;
Cruttenden, Podesta & Co., Chi¬
cago; Wallace, Geruldsen & Co.,
Chicago.

are

Laidlaw

Newburger Branch

and

activities tend to block

Weeks;

Co.; Francis I. duPont & Co.;
Hayden, Stone & Co.; W. E.
Hutton & Co.; Dominick & Domi¬
nick; Coffin & Burr, Inc.; Wm. E.

J.J. Krieger & Co.
Offers Speed-Way

Although
economic ings Building under the manage¬
is
an
avowed
goal
of ment of Richard E. Foltz. Jesse A.

grams and

with

elimi¬

policy, >'many: 1 governmental

offering

Rothschild & Co.; American Secu¬
rities Corp.; G. H. Walker & Co.;

dividends ATLANTIC
CITY, N. J. — Newburger & Company has opened a
branch office in the Anchor Sav¬
Blocks
to

large

pay

home

growth.

(8)

the

& Hutzler; White, Weld &
Co.; Phelps, Fenn & Co.; Blair &
Co., Inc.; R. W. Pressprich & Co.;
Allen & Co.;

Eugene Nimkoff, Presi¬
of foreign
keeps our own dent; Louis M. Mintz, Secretary;
and Hyman Wiener, Treasurer.
efficient.
Con¬

pressure

efforts to reduce

tinued
nate

production gage in

domestic

Bros.

finan¬

City, June

members

Halsey, Stuart & Co. Inc.; DrexCo.; Banco Credito y Ahorro
Ponceno, Ponce, P. R.; Banco de
Ponce,
Ponce, P. R.;
Salomon

the

and

el &

Copley Securities Corporation has

Foltz and Dominick Bianchini

150,000

are

stock

associate managers of the new of¬
fice.

$2.00

Schirmer, Atherton Branch
LYNN,

Mass.

—

Schirmer, Ather¬

(par value
stock

mon

Stores

food

fice at 117 Broad Street under the

ceeds

management of Joseph Wineapple.

corporate

chain
of

com¬

Food

are

Inc.

one

being

offered at
by J. J. Krieger

120

The

will

the

common

cent)

per

Co.,

New York

the

Speed-Way

Inc.

ton & Co. has opened a branch of¬

Liberty St.,
Brooklyn-based

use

the

net

pro¬

offering for general

purposes.

our

business

growth

are

agricultural policies,
subsidies,
natural
re¬

policies, regulation of in¬
dustry, foreign trade policies, and

Abraham & Co.

source

grants-in-aid.
serious

growth,

one

business
ciencies

our

should

whole

the

Abraham

If we are really
New
accelerating
our

about

first orders of

attack

and

ineffi¬

structure

impediments

induced

Public

quires

Works.

social

investment.
makes

Growth

ner

and

genuine

contribution to

munity.
benefit

public

desired

services

But

Co.,

City,

Stock

1st will

MONTREAL,
QUE., Canada —
Merrill Lynch, Pierce, Fenner &
Smith, Incorporated has opened a

120 Broadway,
members of the

Exchange

J. R. Williston

Kahn

admit Irving
a

branch

part¬

Boulevard, West, under the
agement of Paul Sullivan.

& Beane.

To Be Gross Partner

here

principles

City,

members

Stock

office

635

Dorchester
man¬

Wagenseller Branch

SANTA ANA, Calif.—Wagenseller

July 1st Samuel Ochs will bewell as private come a partner in Gross & ComThe government pany, 15 Broad street, New York
re¬

economic growth when it provides

complementary

partnership. Mr. Kahn is

at all levels.

(9)

York

July
to

York

New

governments

Merrill Lynch Open
Branch Office in Montreal

Admit Irving Kahn

& Durst, Inc., has opened a branch

office at 811
North Broadway,
under the management of Robert

of the New York

G. Mawhinney.

Exchange.

facilities

by the com¬

strict
should

costapply

growth will be retarded. Be¬
public services are gener¬
ally not valued in the market

criteria are dif¬
apply. Realism and re¬
straint are, therefore, of crucial
importance in the use of public

place,
ficult

economic

NOTES

funds.

(10) Maintenance and Develop¬
of the System. Certain kinds
of governmental expenditures to
promote
science,
technology,
health, and education also pro¬
mote
growth. Here again strict
criteria should be applied, at least
insofar as economic growth is to
ment

served.

ties

should

Governmental
not

supplant

UTAH SECURITY DEALERS ASSOCIATION
The
new

Utah

Security Dealers Association has elected the following

officers:

those

areas

where

activi¬

Vice

private

substantial

President:

Schwabacher

governmental action
clearly apparent.

Goates,

Phil

Co.

Treasurer: Robert P. Wool-

ley,
Conclusion

Tax p o 1 i c y must can be achieved within a frame¬
masters, and eco¬ work of economic and political
growth should be one of freedom, the debate will range

Tunks, J. A. Hogle & Co.
Secretary:
Robert Bullen,

benefits from
are

o y

Lynch, Pierce, Fenner
& Smith Incorporated.

activities and should be restricted
to

C 1

President:
Merrill

Robert

Woolley

Company.
Directors: Edward

Mawood,

Dempsey-Tegeler & Co.; Rob¬
ert
Whitney, Whitney and
Company;

Calvin P.

Edward R. Burton &

Coin R. Ure,

Taxes.

several

Other

public, the
from a yield of
dollar price of par.

scaled

are

group include:

F. S.

formed

Pub¬

as 5, 33/4S, and
3.90s,
net
interest
cost
of
to the borrower.

2.50%, out to

Copley Sees. Corp.

involuntary

(5)

bonds

1960.

Form

3.89437%

Presentation

business
York

Com¬

Rico

On reoffering to the

Wallis

Awards

New

may occur.

serve

Mr.

Loeb

We are in the midst of a great
unemployment as
debate
over
economic
To achieve maximum national
sustainable growth, national poli¬ growth. But until we understand
cies must also present speculative what growth is, why it is an im¬
excesses in boom periods.
portant policy goal, and how it

objectives

setting

growth.

honor

journalists

been

competition

♦An

$17,000,000
Puerto

for the bonds

people.

Third

of
of

Improvement Bonds, due July
1, 1961 to 1980, inclusive.
The
group submitted a bid of 100.012999

written. We can be confident
that these chapters will be
happy
ones if we have the wit and wis¬
dom to preserve and

luncheon

issue

lic

offices at 1359
indirectly a greater quantity
variety of goods and services Broadway, New York City, to en¬

alone.

stifle

—

same

free

managed

monwealth

The future chapters of our story
of economic growth are still to

powerful ally

growth. By trade

and

the

voluntary

choices of the people, rather than
a rate obtained
by coercion, com¬

and

prevent

International

national

duce

aimed

consumer

innova¬
the regulated industries.

tion in

(7)

means

the

underwriting syndicate joint¬
by The Chase Man¬
hattan
Bank; Morgan Guaranty
Trust Co. of New York, and Ira
Haupt & Co. was awarded on June
ly

vigorous
strengthen
anti-trust program is essential to the forces of
progress that have
growth.
Restrictive
labor
prac¬ produced in America an abundant
tices, likewise, need to be elimi¬ economy, a great nation, and a
and

growth

stimulating

effort, improving pulsion, or excessive social costs.
cyclical flexibilty of the tax The rate of growth can be in¬
system as a whole, and treating creased
by improving the ef¬
equally people in equal economic ficiency of the economic system
circumstances.
and
by
pursuing
wise
public
(6)
Maintaining
Competition. policies to create a favorable en¬

effective

and

Being Marketed

and

the

economic

assure

material

benefits, widely dif¬

tives to personal

continuity
of
maximum
employment opportunities and to
alleviate the consequences of such

doing

Puerto Rico Bonds

growth in economic wel¬

exemptions and exclu¬ fused. True growth must conform
sions, and discriminatory levies to the values and aspirations of
distort resource use and impede
a
free people. The "right" or op¬
healthy growth.
Tax reform timum rate of growth is that rate

things, and de¬
velops- new techniques and proc¬
esses.
Hence, one of the most
ways

false and confused is¬

many

True

cause

to the ambitious and the able.

Marked

great hodge¬

over
sues.

growth

(2) Equality of Opportunity.
Only when each individual has
the
opportunity to develop his
potential to the fullest and to

base,

obstacles

for

penalize

and innova¬
place in a good tax

found in

Essentials

Growth

mote
are

progress.1

ficient

and

the

function

which, while valuable to the na¬
tion as a whole, do not offer suf¬

tards

how

the
government must provide various
public s e r v i c es and facilities

economic

and

requires

two-fold

system.

than

nomic

good deal about the conditions of
progress

our

moting growth. First, it must pro¬
vide a legal
and institutional
climate conducive to private eco¬

not fully

success

and

deter¬

of growth

years are

the

efforts

economic

that

rates

economic
environment that can be brought
about
and
maintained
only by
positive and progressive govern¬
The government
mental actions.

ligion,

While
mine

contribution

All of this

forcing

through taxes or through infla¬
tion, in order to divert resources

essential

growth.

short,
that
government
should
force growth on the
economy. This
either

in¬

not

are

ment, housing, and other physical
capital, which add to our poten¬
tial supply of goods and services.
In
this
way,
the prudence and
responsible foresight of people in
providing for future needs makes

and activity—in

approach
also
involves
people
to
save
more

methods

new

which

risk-bearing,

have

riers

translation

into practical processes is speeded

the great debate two

The combination of
flow

Taxes

;

thrift,

+oo

(2629)

Phil S. Tunks

Gaddis,
Co.; Lin-

Jr., Ure, Davis &

Co.; and William S. Aspen, J.
A.

Hogle & Co.

Cloyd Goates

Jto* wwwItfljAi «^> Auiti

,iuJMvt»wi(. v^iU^N ;H'^»

,«„

ii.ti
fVi •

ill

Pif
I

Indications of Current

The following statistical
latest week

|:jV
f)

Iff

Activity

Business

week

:fe

month ended

Month

Ago

June 18

(net tons)

Steel

AMERICAN

('■

§1,775,000

*1,756,000

;» •

gallons

Crude

'!;;
''

Gasoline

output

(bbls.)

Distillate

fuel oil output

! .*'■

2,324,000

2,010,000

1,956,000

12,305,000

11,636,000

12,683,000

6,304,000

5,697,000

7,141,000

209,908,000

211,653,000

218,772,000

25,017,000

24,421,000

21,468,000

June

96,341,000

91,453,000

83,501,000

39,997,000

38,705,000

574,301

640,388

641,703

680,617

494,631

539,262

551,838

oil

(bbls.)

Residual fuel oil (bbls.)

ASSOCIATION

at.
at.

June
.

RAILROADS:

AMERICAN

Revenue

CONSTRUCTION

ENGINEERING

CIVIL

Public

'Hi'

I ;;,"'}■

COAL

OUTPUT

and

lignite

EDISON

ELECTRIC

Electric

lj#
i£A

232,200,000

481,600,000

206,000,000

249,800,000

166,400,000

179,800,000

252,500,000
270,300,000

187,100.000

131,300,000

140,600,000

211,800,000

62,700,000

35,100,000

39,200,000

58,500,000

100

June

ilj. U

DUN

*8,440,000

294,000

313,000

131

Electrolytic

(E.

1 <

Export
(St.

tZinc

8traits

tin

MOODY'S
U. S.

lit

ti!
it!
li'.W
».
:

156

13,766.000

13,134,000

283

13,350,000

274

304

295

6.196c

Hospital

$31.50

$32.50

$33.17

$37.50

Social

32.600c

32.600c
30.600c

29.175c

29.725c

29.300c

12.000c

11.800c

June

13.500c

13.000c

11.000c

June

26.000c

24.700c

June

at—

104'.750c*

101.000c

100.125c

99.250c

.June 14

86.82

86.55

84.96

.June 14

85.20

84.94

89 51

89.64

89.51

87.45

87.32

June 14

84.81

.June 14

Group.

83.15

86.91

85.33

86.91

.June 14

3.88

4.06

.June 14

4.77

4.79

4.69

.June 14

4.45

4.44

4.45

.June 14

4.59

4.60

4.61

3.86

4.81

4.83

June 14

4.93

4.91

4.98

Group

Group.
Industrials Group

.June 14
.June 14

4.64

-June 14

COMMODITY INDEX-

4.75

376.5

4.75
4.64

4.64

376.5

■-

4.76

381.8

4.76
4.56

313,558

345,576

310,595

312,547

295,007

480,507

448,196

475,187

1949

ijji!

ROUND-LOT

(i<

TRANSACTIONS

ACCOUNT

:•

110.29

Total

Total
Other

348,200

2,744,410

1,965,900

1,955,400

sales

3,434,870

2,415,790

2,361,050

2,422,630

600,680

394,790

370,460

466,020

171,220

43,500

44,700

29,100

May 20
initiated

511,800

333,020

370,130

477,600

May 20

sales

683,020

376,520

414,830

506,700

the floor—

South

East

May 20

South

l<«

New

York

BUSINESS

Total
COAL

1,037,225

723,021

716,082

689,630

u;si

858,559

827,095

843,119

5,100,345

DEALERS

EXCHANGE

sales

Number

Dollar

I
®

—

AND

SPECIALISTS

SECURITIES

dealers

May 20

5,261,048

555,170
3,047,805

3,650,869

3,602,975

3,488,100
*

495,460

3,276,989
3,772,449

Oven

TOTAL

coke

Total

round-lot

Short

SALES

MEMBERS

THE

N. Y.

SERVE

Month

Total

(net
at

All

Number

17,181

14,562

6,566

1,905,031

1,542,305

1,629,053

1,621,495

$93,315,084

$73,966,740

$80,079,227

$85,210,523

May 20

556,360

419,810

438,980

1,559,486

1,643,615

448,820

May 20

556~360

419310

438,980

448~820

.May 20

663,470

593,980

647,870

599,580

STOCK

one-half

cent

PORTLAND
Month

Stocks

111,475,157

$708,940,061

;

$54,700
12,900

25,800

25,300

$93,400

$88,400.

35,760,000

34,685,000

35,323,000

1,236,000

1,231,000

1,388,000

5,760,669

5,653,846

*6,377,466
*6,243,212

6,074,002

106,823

*134,254

161,978

3,752,298

*3,673,465

3,422,876

$51,100

12,000

OF MINES)—Month

(net tons)
tons)

(net

April:

tons)

end

month

(net tons)

SALES—FEDERAL

6,235,980

RE-

Average=H00—
140

*154

144

137

*150

141

730,523

696,723

660,361

612,094

583,626

547,326

118,029

112,717

112,660

400

380

375

18,422,000

29,093,000

FACTORY

SALES

FROM
MANU¬

passenger
motor
motor

cars

trucks

coaches

April;
(barrels)
from

end

(BUREAU OF MINES)—

used

27,015,000

mills

(barrels)

month

(per

27,341,000

17,681,000

30,135,000

38,542,000

39,163,000

36,378,000

(barrels)

$856,291,478

cent)

RAILROAD

EARNINGS CLASS I ROADS (AS¬
SOCIATION OF AMERICAN RRs.)—Month

April:
operating

revenues

$823,593,483

operating

May 20

1,188.650
19,301,760

20,490,410

792,470

expenses

634,099,769

$847,576,624
658,625,859

94,334,886

98.078,746

692,620

567,330

65,124,764

61,150,611

652,676,733
94,204,791
82,274,098

15,051,040

14,745,520

15,843,510

15,438,140

16,290,710
16,858,040

48,000,000

44,000,000

62,000,000

Net

railway

Net

income

operating
after

ONDARY

TIN

(BUREAU
119.7

.June

89.5

.June

107.5

119.7
i

*89.7

10f.3

119.9
,

119.4

91.5

90.6

107.3

107.1

before

charges

TIN—CONSUMPTION OF

(in

pound.

133,454,537

$692,858,137

$54,700

S.—AUTOMOBILE

CEMENT

Production

(estimated)

PRIMARY AND SEC¬

THE

UNITED

MINES)—Month

beginning

98.0

97.5

97.1

101.2

Stocks

128.4

127.9

Total

STATES
of

March

period

Receipts
supply

June

charges——.

long tons):

Stocks

.June

1,124,000 barrels of foreign crude runs.
§Based on new annual capacity of 148,570,970 tons
as of Jan. 1, 1960 as against Jan.
1, 1959 basis of 147,633,670 tons.
tNumber of orders not reported since introduction
of
Monthly Investment plan.
% Prime Western Zinc sold on delivered basis at centers where
freight from East St. Louis exceeds

140,873,106

$597,464,904

Total

.June

Ulncludes

156,176,768
$559,403,600

Total

figure.

Capacity

May 20
May 20

All commodities other than farm and foods.

120,448,504

1,628,061

May 20

Meats

Revised

number
of

U. 8. DEPT. OF

foods-

52,480,793
36,749,757

April

ASSN.—Month of May:
of vehicles

May 20

—.

products

Processed

Number

TRANSACTIONS

commodities

35,087,559

COM¬

adjustment

VEHICLE

Number

12,115

sales

Farm

Month

;

Without seasonal

1,786,479

Commodity Group—

41 IJ

—

Taxes

—

28,878,541

May:

$95,625,800

sales—

WHOLESALE PRICES, NEW SERIES
LABOR — (1947-49 = 100):

109,864,261

42,440,216

$594,323,057

City

DEPT.

—

SERIES

SYSTEM—1947-49
of

1,894,274

1,917,146

Total sales
■

109,396,294

Adjusted for seasonal variation-

$95,585,664

(SHARES):

sales

Other

.1—_

(net tons)

1,726,857

sales

STOCK

121,730,252

dollars):

coke

Shipments

purchases by dealers— Number of shares

York

anthracite

$83,414,474

ACCOUNT

2,057,726

May 20
May 20

sales

ROUND-LOT

FOR

90,942,023

12,900

$100,648,152

,May 20

EXCHANGE AND ROUND-LOT STOCK

"if *
,UU

57,678,039

108,183,722
94,933,186

65,865,346

May 20

value

Other

63,580,208

$528,457,711

New

NEW

May 20

Round-lot

$35,648,480

51,828,277

—

PLANTS

Short

$23,513,930

FACTURERS*

short sales

Dollar

38,262,741

DUN

—

States

coke stock

MOTOR

STOCK

Round-lot sales by dealers—
Number of shares—Total sales.

:-Y;

ii.;/

3,355,112

633,330

3,017,539

COMMISSION

Customers* other sales

**3

3,534,991
'

purchases)—t

value

Customers'

;',f I '
& 11

1,044,960
4,216,088

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

l.+i

May 20

39,347,513

DEPARTMENT STORE

May 20

EXCHANGE

(customers'

105

64,795,834

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

(BUREAU OF MINES)—Month of
Production (net tons)
:

1,143,158

Odd-lot

105

Pennsylvania

May 20

;

May:

May 20
transactions for account of members—

—

122

OUTPUT (BUREAU

Oven

123

City

Beehive

549

CITIES—Month

Bituminous coal and lignite

118,160

—

390

$32,349,706

VALUATION

INC.—217

—

724,959

sales

144

;

104,820

sales I

Retail

722,275

sales

128

Wholesale

139,940

Other

and

INVENTORIES

718,619

Short

systems

enterprises

including

183,280

Total

227

—

—-

United

959,878

purchases

222

;

Total

May 20

round-lot

buildings-

Central

May 20

Total

385

service

and

Mountain

sales

Total

375

235

Central

sales

397

institutional

Central

Other

Total

1,468

.—

Atlantic

Short

1,187

COKE

purchases-

81
377

2,074,430

May 20

transactions

Total

405,650

May 20

sales

Other

off the floor—

purchases

Short

449,890

May 20
initiated

690,460

May 20

sales

2,332,450

May 20

transactions

2,268,570

458

348

Manufacturing
2,417,180

440

—L

Atlantic

(Millions

3,462,440

155

107

development
public—

England

MERCE

sales

Other

110.95

MEM¬

sales

Other

iv;i
**•«*

110.31

Short

lit

FOR

110.31

specialists in stocks in which registered—
purchases
H
May 20

Total

ijj

.June 10

125

378

——„

service

548,933

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions

New

Middle

Total

AVERAGE=100

348,856

289,565

,June

(tons) at end of period.

327,221

.June

activity-

.June

41
46

143

—

PERMIT

Pacific

.June

(tons)

45
46

—

April:

West

387.4

ASSOCIATION:

OIL, PAINT AND DRUG REPORTER PRICE INDEX—

♦

Utilities

Unfilled orders

46
46

—

BRADSTREET.

4.76

buildings

water

other

BUILDING

5.03

213

facilities

and

Public

4.70

5.28

received

229

1,367

and

4.13

5.23

Percentage of

240

.—-

Sewer

4.56

corporate

Production

161

—

30,136,505

Sewer

4.47

Orders

159

139

—

nonresidential

Military

All

4.80

•

320

161

156

—

buildings

Conservation

5.25

■

300

168

construction

Other

87.99

.June 14

)V<

154

85.33

.June 14

•i'/i

207

telegraph—

Administrative

85.33

85.46

Baa

687

206

._.

Hospital

81.90

82.52

MM'i

736

86.11

78.90

83.40

84.43

79.49

85.46

.June 14

84.68

79.25

.June 14

NATIONAL PAPERBOARD

770

buildings

.—

and

'"Industrial

;

87.99

,June 14

MOODY'S

485

Nonresidential
,

89.23

87.59

438

recreational

and

Residential

.86.24

365

—-—-—_

public utilities
private

other

Public

83.42

U. S. Government Bonds

i «.1!

425

—

Educational
;

'..^

,i'

1,473

:—

utilities

Other
All

AVERAGES:

Public

1,190

11.500c

June

Group

Railroad

1,248

516

11.800c

—

1,972

—.—

institutional

and

Telephone

12.000c

June

Aaa
>■
»,."<'

3,287

1,624

——-

construction

Public

31.150c

MOODY'S BOND YIELD DAILY AVERAGES:

n-.i

4,755

2,944

::—

Educational

$66.41

June

Baa

Group

4,131

—

6.196c

June

Industrials

4,535
3,168
1,747

L__——ii;

nonresidential

$66.41

Average

Other

6.196c

,June 14

Utilities

324

$66.41

at.

Public

85,348

196,004

buildings and warehouses—restaurants, and garages—

Stores,

77,489

71,926

Commercial

13,503,000

83,221

147,861

OF,

alterations——

Miscellaneous

corporate.

Railroad

7,317,000

62,039

.—

buildings

$66.41

DAILY

DEPT.

millions): |

(in

—

June

PRICES

311,601,000

*10,591,000

79,216

—_

and

Nonresidential

150

June 14

Additions

Aaa
A

380,000

June

Government Bonds.

Average

278,000

New

June

at.

BOND

May

buildings (nonfarm)
dwelling units-——

June

(primary pig. 99.5% )
(New York) at

307,260,000

165,038

—,—

construction

Farm

(East St. Louis)

Aluminum

\A-\
!T

York)

Louis)

(delivered)

Zinc

8,516,000

copper—

(New

Lead

Private

construction

Religious

refinery at
refinery at.

Lead

lit-f

40,638,000

34,532,000

(tons)—-——

CONSTRUCTION—U.

new

QUOTATIONS):

period

LABOR—Month
Total

PRICES:

Domestic

T'i'

PRICES

METAL

Vili:

8,275,000

139

i/'fl

>V> (

steel (per lb.)
Pig iron (per gross ton).
Scrap steel (per gross ton)—.

BUILDING

end

Office
—

Finished

:h-.,

8,010,000

June 11
INDUSTRIAL)

June

COMPOSITE

AGE

29,377,000

344,746,000

————

of 2,000 pounds)-

(tons

Industrial

AND

(barrels)-

Nonhousekeeping

BRADSTREET, INC
IRON

Stocks

INSTITUTE:

(COMMERCIAL

stocks

28,113,000

29,966,000

——•——

all

47,000

29,730,000

.,.

$522,800,000

June
June

(in 000 kwh.)

output

FAILURES

27,281,000

17,000

29,292,000

INSTITUTE, INC.—Month of
May: •
'
; ,' "
I
"
■ 'I
Slab zinc smelter output all grades (tons of
2,000 pounds)
—Ii—

INDEX—FEDERAL RESERVE

AVERAGE

SYSTEM—1947-49

222,839,000

27,559.000

Residential

(tons)

STORE SALES

DEPARTMENT

250,167,000

209,986,000

29,956,000
23,000

AMERICAN ZINC

OF MINES):

Pennsylvania anthracite (tons)

l.jf'f'l 5j

$385,800,000

June

S. BUREAU

(U.

coal

Bituminous

$648,000,000

June

municipal

$482,000,000

June

and

Federal

June

construction

State

237,562,000

220,977,000

output

(barrels)

Shipments

June

construction

Private

gasoline

.Decrease

ENGINEERING

—

construction

159,177

250,956,000
oil

crude

(barrels)-——(barrels)———
Benzol
output
(barrels)—.—
Crude
oil
imports
(barrels).
Refined product
imports (barrels)-——j—s
Indicated consumption domestic and export

NEWS-RECORD:

Total

157,189

117,142

production (barrels of 42 gal¬

each)

Natural

566,588

fuel

156,825

114,984

March:

Domestic

55,615,000

Distillate

lons

102,496,000

June

■tir

Ago

INSTITUTE—Month

PETROLEUM

Total domestic

203,605,000
25,063,000

■#<■'

•

8,204,000

29,152,000

12,245,000
6,229,000

June

7,788,000
26,924,000

freight loaded (number of cars)
June
Revenue freight received from connections (no. of cars)—June

i.I

Year

Month

170,688

of Mar..

aluminum (short tons) end

—

7,032,325

6,771,210

7,899,000

28,654,000

2,276,000

June

(bbls.).
Stocks at refineries, bulk terminals, in transit, In pipe llnea
Finished and unfinished gasoline (bbls.) at
Kerosene (bbls.) at—-

"S,814,560

28,943,000

June

(bbls.).

Residual fuel oil output

".j

6,780,960
(17,961,000

June
June
June
June

(bbls.)

Kerosene

!"'■'■

of that date:

MINES):

primary aluminum in the U. S.
(in short tons)—Month of March——

AMERICAN

each)
to stills—daily average

runs

(bbls.

output—daily average

condensate

and

are as

INSTITUTE:

PETROLEUM

oil

Crude

either for the

Latest

(BUREAU

ALUMINUM

2,620,000

2,031,000

are

Month

92.5

71.3

*61.6

Thursday, June 16, 1960

of quotations,

Ago

§62.3

Stocks
^

Year

Week

production and other figures for the

cover

that date, or, in cases

Dates shown in first column

Production

Equivalent to—
ingots and castings

.June 18

(per cent capacity).

tabulations

month available.

Week

STEEL INSTITUTE:

AND

Steel operations

Indicated

•;

Latest

IRON

AMERICAN

Chronicle

The Commercial and Financial

(2630)

}S;

34,640

••7,200
end

Consumed

31,545
7,130

33,765

34,640

38,675
31,050

8,075

7,395

7,625

200

manufacturing

115

7,875

transactions—.

Primary

fSecondary

4,240

42,035

IIIIII

period

scrap

41,840

processed

Intercompany

37,795

::::::::::::::
IIIIIIIII

7,280

7,510

4,760
2,520
2,685
*Revised figure.

5,190

-IIIIII"IIIIIIIII.

^Includes tin content of imported

Tin" based

alloys.

4,700

2,810

Volume 191

Number 5960

The Commercial and Financial Chronicle

announced

NEWS ABOUT

(2631)

June

the

creation

effective

July 1 of a three-man
top management term headed by
David M. Kennedy, Board Chairman and Chief Executive Officer,

BANKS AND BANKERS

the

time

same

was

by the Office of Comptroller of
the Currency to the Westview National Bank, Waco, Waco, McLennan County, Texas. The President

an-

nounced that Richard A.
Consolidations

New Branches

•

New Offices, etc.

•

Aishton,
President, will leave that position

Revised Capitalisations

•

June 30 under

June 9 announced that G. Russell
Assistant Clark,
State Superintendent of

Appointments of Ruby L. Walters
Walsh

Helen

and

Vice-Presidents of Manufacturers

New

Company,

Trust

York

was

Banks, had signed the authorization for the Roslyn Savings Bank
to

announced by Horace C. Flanigan,
Chairman of the Board.
Mrs.

Walters,

1948 and in 1954

Andrew

apppinted an Assistant Secre¬
tary. That same year she moved
to the Bank's Fifth Avenue Office,
she

office

from

Doig

was

N. Y.

June 9.

Mr.

Kennedy,

elected

Graham and Mr. Cum-

mings were also elected directors,
succeeding James R, Leavell and
John Holmes, who retired.
Mr.
Aishton remains

the

Bank's

Appointment of George Skakel,
as
a
member
of
the Advisory
Board was also announced by Mr,
Flanigan.
Appointmentiof James J; Hack-

The Salem National Bank, Salem,
New York, will be merged into a
,

Marine Midland Bank, The Manu-

as a member of the advisory
board
of
Manufacturers
Trust

Empire

State

Office

The Chase Manhattan Bank, New

York,
at

new-

Bush

June 15 started business
branch in Brooklyn, at

Terminal,

41st

Second Avenue, the
in the borough and

Street and
bank's ninth
105th in the

the

and

York,

New

Bank

stockholders

from
the
New York
State Banking Department to in¬
crease
its
capital
stock
from
approval

?hS

the

Included

tentative

named Senior Vice-President last

and

December.

general corporate purposes.
additional 80,000 shares are

Salem
as

$2,799,780 consisting of 559,956
same par value.

shares of the

advisory boerd to the Troy

Marine

Midland

Charles

President

Bank
as

Chairman.---The

Salem National

Company of New York, announced

the broad employe^ benefits available through the larger Bank, ineluding a pensioh program with
full credit for past years of

the

following

appointments and
promotions:. H e n r y F. Gorring
from
Assistant
Comptroller
to
Assistant Vice-President; Harry L.
Kurnit, Auditor; Harold J. Powers,
Assistant Cashier, and Ralph D.
','
Yeager, Assistant Cashier.

•

staff will receive

service.
The

^—2~j.

*
of

Board

*
*
Directors
,

the

Worcester County National Bank,

Worcester,
hold

The Bankers Trust Company, New

Mass.,

special

voted

meeting

the

shareholders to consider and vote

announced plans June 13
acquire the South Shore Bank

York,

the reduction of the par value
of Staten Island, Great Kills, N Y. of Capital Stock from $25 to $10,
The merger will give the Bankers thus splitting the stock two and
to

Trust

its

first

representation

One-half

Moore, Chairman of
Bankers Trust, and J. A. Springstead,
President
of
the
South
the
of

offer

six

called

for

banks

both

have

of
to

Capital
325,000

was

further

announced

$35 per share in the ratio of one
share for every 10 shares

new
<

held;

This will increase the. Cap-

ital Stock from $3,250,000

and the Federal Reserve Board.

The

57^,000.
creased

Harnett

Carney have
Presidents

and

been

the

Daniel

elected ViceLafayette

Na¬

to $3,-

The Surplus will be in¬
by $812,500.
*

State

Bank

Newark,

N. J., was formally opened June
13, in the Prudential Plaza Build¬
ing.

tional Bank of Brooklyn, N. Y.
Stockholders
National

Bank

the

Franklin

Long

Island,

special meeting held June 9,
approved a change in the Bank's
main office from Franklin Square
as

Mineola.

81%

of the

3,233,800
outstanding were
voted; 80%
approved and
1%
disapproved. The change will be¬
come effective when formally ap¬
proved by the Comptroller of the
Currency; tentative approval has
already
been
granted
by
the
Comptroller's office.
shares

of stock

The

State

Banking

Bank.

Department,

area,

will

Assistant Cashier

elected

was

1923 and

was

Vice-President

Senior

Union Trust Company of the Dis¬
trict

D. C.,

tal

Columbia,

Washington,

increased its common capi¬
from $2,800,000 to $3,-

stock

000,000 by a stock dividend effective as of June 1. (Number of
shares outstanding—300,000 shares,
par

grass SS&
DIVIDEND

NOTICES

DIVIDEND NO. S3

Hudson Bay
and

Mining

Smelting Co., Limited

A Dividend of seventy-five cents
($.75) (Canadian) per share has been
on the Capital Stock of this
Company, payable September 12,
1960, to shareholders of record at the
close of business on August 12,1960,

declared

J. F. McCarthy, Treasurer

selling

Crawford Corp. and its subsidiaries

tion,

development and sale of
properties in the

residential

elected

Board

Chairman

that

Leavell

Mr.
,,

President

was

m>.o

bank ^roJ1

JBfcst National

Chicago,

Bank, of

"^olph ^.^aUuck JVkl-PreSridents.

public market

elected

James

Thompson,
Presi-

Director.

Giving effect to the current is¬
capitalization will consist of
186,472 shares of common stock
and 494,227 shares of class B com¬
sue,

stock.

Commercial Bank and

Secu¬

rity National Bank of Greensboro,
N. C.,

have announced an agree¬
ment to consolidate the two banks
into one institution, subject to the
both

the

stockholders

and

banks

20, 1900.
Secy-Treas.

UNITED SHOE MACHINERY
CORPORATION

Consolidated

earnings for the
year ended March 31, 1959 were
$680,554, equal to $1.13 per share.
For

the

nine

months

ended

220th Consecutive Quarterly Dividend

The

Dec.

Board

has declared

31, 1959, earnings were $545,787,
equal to 91 cents per share.

of
a

Directors

dividend of

37^ cents per share on the
Preferred stock and 62 Vi
cents per

share on the Com¬
stock, both payable
August 1, 1960 to stock¬

Burnham Heads
TIA nvar\in

holders

dff'r*

IUIIIIIIIUtlllllllllllllllllllllllllllllllllllll|lllllllllllllllllllllllllltllllllllllll%,

New

the

Federal

regulatory authorities.
The na¬
banking authorities have
already issued preliminary ap¬
proval.
The new name agreed on for

company.

COMMON DIVIDEND NO.

The

Pak, Inc.,
1954. In 1955,
Henderson's Sea Food, Inc., an af¬
filiated corporation was organ¬
ized, and on Jan. 2, 1960 the two
companies
were
merged.
The
company's plants are located in
Coral Gables, Florida, where they
process
and freeze meats, meat
products, fish, sea food products
in

the

sell

and

England Gas

and Electric Association
Trustees

Portion

organized

finished

items

July

June 8, 1960

Portion

Henderson's

record

Frederick A. Stevens,
Treasurer

•

A public offering of 200,000 shares
of common stock of Henderson's

was

1960.

JtlGIlQGFSOIl ijll £?•

Received by the

June

ATKINS,

jinijgg.

The Board of Directors of Ameri¬

approval

record

C, B.

Pak, Inc. is being made
today (June 16) by an underwrit¬
$
*
*
ing group headed by Burnham
By a stock dividend the common and Co. The stock is
priced at
capital stock of The First National
$6 per share.
Bank in Altus, Altus, Okla., was
•. All
of the 200,000 shares are
increased from $100,000 to $200,being sold for the account of
000 effective June L (Number of*
certain selling stockholders of the
shares outstanding—2,000 shares,
company and none of the pro¬
par value $100.)
ceeds of the transaction will be

can

stockholders

mon

chairman and continues

dividend of $1.75' per share on the 7%
Preferred Stock payable July I, I960, to

Sears Bank & Trust Co., Chicago,

ues

The Board of Directors has declared

ri •;
*

I1L>

CORPORATION

for ns stock,

mon

time.
..

been

WAGNER BAKING

dividend

quarterly
nine

the

cents

ciation
to

(29<0

common

of
per

twenty-

shares of the Asso¬

payable July

13,

shareholder? of record

dose of

declared

have

business

B. A.

1960
the

June 28, 1960.

Johnson, Treasurer

June 9, I960
iiiiniiiiiiiiiiiiiiuiiiiiiiiiitiiiiliiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitinuiiu

frozen, ready-to-cook portions of
uniform size and quality, primarily
the combined bank is North Caro¬
for use by restaurants, institutions
lina National Bank. The consoli¬
(schools, hospitals and clubs), and
dation will be effective under the
name

new

soon

the. Comp¬

troller of the Currency gives final

approval.
*

capital stock of The

common

Atlantic

National

Bank

Jack¬

Jacksonville, Fla., was
from $4,000,000 to $4,400,000 by a stock dividend and
from $4,400,000 to $5,000,000 by

sonville,

increased

sale

June

stock

effective

of shares out500,000
shares,
par

(Number

standing
value

new

—

commercial

and

feed¬

terias

and airline caterers).
financial
state¬

Consolidated

industrial

ing establishments (in-plant cafe¬

$10.)

ments for the year ended Jan. 30,
1960
showed net sales totaling

net
income
of
to 64 cents per
share. For the fiscal year ended
Jan.
31, 1959
consolidated net
sales were $5,810,301 and net in¬
come amounted to $234,477 equal
to 23 cents per share. Earnings
for both years have been cornputed on the total of 1,000,000

$6,974,851
and
$637,970, equal

Comptroller of shares of common stock and class
the Currency issued a charter on B common stock outstanding on
May 31 to the Florida National Jan. 30, 1960. On May 2, 1960, the

The Office of the

Bank at Port St. Joe, Port St. Joe,

Gulf County,

Walter

Fla.

Sharit

The President
the Cashier

and

The

Dodson.

bank

capital of $100,000 and a
surplus of $174,220.92. This is a

has

directors declared
dend
the

7V2

common

record

cents per share on
stock to stockholders
on

July

Holders of class B
are

not

initial divi¬

entitled

31,

1960.
stock

common

receive

NATIONAL UNION
FIRE INSURANCE
COMPANY
OF PITTSBURGH, PA.

154,h DIVIDEND

DECLARATION

The Board of Directors of this com¬

today declared a cash divi¬
Fifty Cents (504) a share
on the capital stock. This cash divi¬
dend will be paid June 30, 1960
pany

dend of

stockholder* of record

dose of business June 13,

at the

1960.

any

Conversion*of the Florida Bank at dividends.

value $10.)
*

rate

1954..
He
was
promoted to the
Presidency in January, 1959, suc¬
ceeding Mr. Kennedy who was

the

George Munsick, President, Trust
Company of Morris County, has
announced
the
appointment
of
David T. Pyne as Assistant Trust
Officer and Assistant Secretary.

certain

National

Port St. Joe, Port St. Joe, Fla.
*

Continental Illinois National Bank

banking

Graham's

Mr.

Merchants Office of the

being sold by
stockholders,

the field of general administration, southeastern United States. All
When Mr. Aishton retires June outstanding shares of the com30 he will close a career that dates pany and its subsidiaries and afback to 1919, when he joined the filiated companies having forold
Continental and Commercial merly been closely held, there has

The
new

National

John

that

suance

Shareholders
will vote at special meetings on
July 13. Approval is also required
of the State Banking Department
approved the plan.

in¬

the voting would authorize the isof 32,500 ($10 par stock)
to be offered to shareholders at

Trust

Company stock for each share of
the South Shore Bank of Staten
1
of

while

tional
It

Island.

Directors

will

shares.

exchange

This

shares
130,000

from

Stock

Island, said

Bankers

one.

number of issued and

outstanding

William H.

.Shore Bank of Staten

for

the

crease

Staten Island.

commercial

the

of Sterling National Bank & Trust

of
for

are
principally engaged in
Mr. Kennedy said Mr. Cum- the production and sale of manumings' duties will be largely in factored homes and the acquisi-

with

...

McKee

Cummings joined the bank
1932, was elected Vice-Presi-

ri^nt nnri fViipf Tr.YAi-MitivA fiffippr
dent and Chief Executive Officer.
advisory He succeeds Crowdus Baker, who
complete resigned as Chairman but contin-

board

Mr.

plan

^ aPP°i?tnLent f of Directors
the present
Bank
Board

shares of the par value nf $5 each,
of

Pulvermacher,

re-

Joseph

operate as siff'bffice of
Manufacturer, National Bank of
Troy.

received

Bank

ceive Marine Midland Corporation
commoh stock and for the Salem

Commercial Bank of North Amer¬

ica,

bank

holding company
already have approved a plan of
merger
which provides for the
Salem

respec-

tion. The directors of both Banks

city.
sjs

Troy,

tiVe bank: stockholders and regu-

igan.
*

latory
banking
authorities, according to a joint announcement
by the three Presidents, Charles
B.
McKee,
Salem
National,
Chester F. Millhouse, Manufac¬
turers
National,
and
Baldwin
Maull, Marine Midland Corpora¬

also announced by Mr. Flan-

was

Bank

subject to approval of the

ett,

Company's

National

factiirers

Proceeds.from the sale of 80,-

shares will go to the company
addition to working capital

dent in 1947 and became Senior
Vice-President last December.

assigned

annual

Washington
Planning Corporation has opened

underwriting g t o u p
which offered on June 14, 160,000
shares of Crawford Corp. common
stock, $1 Par value, at a price of
$13 per share.

Mr. Graham joined the bank as 000
in 1953, and was'for

dent three years ago.

Walsh

shares
share

a?*

into

fitchburg, Mass.

£■' 9* decker & Co. Incorporated,

director.

and became Assistant Vice-Presi¬

Union Square Office.

basis

stock

common

160,000 shares.

Vice-Chairman

Board, and Tilden Cummings, who was named President,

Manufacturers Trust in 1926. Miss

the

stock

Fitchburg Office

A. G. Becker Heads

the

named Assistant Treasurer in 1954

was

class

converted

common

jer *s Guy
Davidson. The bank
has a capital of $200,000 and a
surplus of $200,000.

Vice-President

Doig has been with
organization since 1938. He

SSKS Crawford Offering

group
who was

presently assigned.
Miss Walsh, a commercial loan
officer
of
the
Bank, came to

Mr.

will

is Walter B. Dossett and the Cash-

members

addition

Both Mr.

elected a
Vice-President
of
The
County
Trust
Company,
White
Plains,

was

where

main

joined Manufac¬

Trust in

turers

its

move

Roslyn, N. Y. to Mineola, N. Y.

class B common stock outstanding.
Beginning
Feb.
1,
1961,
shares

the bank's retire¬

ment program.

and Trust Company,

Chicago, 111.,

charter

was

issued

There
par

May 27

are

value

800,000

200,000 shares of $1
common

of $1

stock
par

and

value

Trtoiuw

7,1960

The Commercial and Financial

(2632)

Chronicle

Thursday, June 16, 1960

m
h'\C-

BEHIND-THE-SCENES INTERPRETA TIQNS

hV
I,

COMING

AND YOU

t
VjV

FROM THE NATION'S CAPITAL

'i \

•til

INTERNAL

'II.
it!

WASHINGTON, D. C. — W i t h
perhaps less than three weeks
remaining before Congress
quits, everything is in readi¬
ness for the
final big push by

l'>-

the law-makers.

There

appears

likelihood

■

that

political

\?V

major

session

candidates

would

both

nominated
President

Members of Congress in both

parties would be inclined to at¬

fe:

tempt to whip up political par¬
tisanship for their side, and seek
to downgrade their rival party.
Little if any constructive legis¬
lation would emerge from such
partisanship.
-

'"•I'V

jl' J

'v'G
!ih

Senate and House leaders

V!v

confident

%■

are

Congress

working steadily, can finish up
the
"must"
legislation before
the 86th Congress is rapped to
adjournment.
There are some
far-reaching measures, affecting
nearly everybody in this coun¬
try, pending.

}.';[{/
iw

J{SW;(

that

VfjiV#'•
M'U

bill

minimum

Proposals

instance, organized labor
making a tremendous effort

to get passed amendments to the
social

security law that would
provide medical care for the
senior

citizens

our

legislation.

The local unions
states

with

gress

medical

care

election

in the vari¬

bombarding Con¬
requests to get a
bill passed.

for

year

years

Every
;

now,

under

two

past

the

Labor

both

as passage

St.

City Bond Club 39th annual
golf tournament and picnic at the

housing bill will
become law, it appears certain.
Traditionally Congress has been
passing the
omnibus
housing
bills in the final days of the ses¬
sions. This year will be no ex¬
ception,
Congressional
leaders

White Bear Yacht Club.
June

June
Bond

bill

corporation

sure

York

laws

these

for

enacted

another

:
the

before Thanksgiving. Then there

Federal

are

positively out

1959

were

of the

legis¬

the country by the statement of

eral-State

Secretary

would

Raise

splashed

Arthur

across

Flemming

Government securities down

substantially since Congress
in

interest

January, the bond

rate

Eisenhower
advocated
than

bill

which

the

Administration

year,

early
to

iri

the

have

session,

favorable

raise

pay

employes

bill

for

might

Fed¬

conceiv¬

cancer-causing

Because of the alleged contami¬

nation,

faces

veto

against it.

President

millions

cranberries
bill

great

interest

self

that

have

reasonable

passage

destroyed.

persons

would

employed
appear

chance

that

one

and
to
of

would

authorize

pay

tax

$2,500 maximum each year
their

after

when

normally
be

retirement,

their

sharnly

tax

scale

lower.

biggest monetary bill left
Capitol Hill this session is

the

Understanding

so-called

tance"

President
recommended,
appropriation will pass af-

this

Options
by

Thousands

ter several hundreds of millions
have been trimmed off of it.

HERBERT FILER

authority
of

successful

„

Another

the subject.

This
on

book

shows

you too
minimum

how

traders and pro¬

stock

can

how

make

public works projects like rivers
and

they do it and
maximum

investment.

profits

shows

The

buy and sell puts and calls, how to use
them
to make
capital gains instead of
short-term profits, how to use options to
protect profits on your stocks, etc. -

help

book

you

costs

make

only $3.00.
fortune.
you

And you can examine it Free.
and mail this coupon today.

the

To your

favorite

bookseller,

White

Please

ft »'

*•

send

Herbert

Filer's

J
I

V&
*

»-

Under-

substantial

the

annually; skilled nurs¬
ing home
services;
physician
services,
outpatient
hospital
services,
organized
home
services, private duty nurs¬
ing services, therapeutic serv¬
ices;
major dental treatment;

care

laboratory and X-ray treatment
to $200

was

beginning of this

estimated that

21,000,000

drugs
The

a year,

to $200

and prescribed
a

so-called

bill,

stir in and

medical

circles, was
stripped of its liberal provisions
to provide for health care for

the aged

through social security.

the

year

taxes.

than

Some late sessions of
Congress
apparently will be necessary in

had

Club.

Standard Country Club.
June

21,

1960

(Detroit

Security

Traders
and

Club.

;;.V

;;;

24, 1960 (Philadelphia, Pa.)
Investment Association of Phila¬

delphia

annual; outing

Whitford Country Club,
Pa.
•

(Chicago, 111.)
Security Traders Association of
Chicago outing; at Nordic Hills
Country Club.
June 25-28, 1960

(Santa
Barbara, Calif.)
■

California

Group

July

10-Aug.

111.)
Fundamentals

I960

ance

plan is

and

bounds.

persons

the

will

growing by leaps
About
4,000,000
be

Federal

covered

Employees

under

health

program that will

begin July 1.
The Federal employees plan is
supposed to be the biggest in¬

to the opening of
Democratic National Con¬

vention in Los Angeles.

[This

and may or

The

employees

them¬

selves will pay for the insurance.
The

the

medical

House

bill

care

Ways

and

which

Means

may

the "Chronicle's"

course

Full text of Commercial and Financial Chronicle : June 16, 1960, Vol. 191, No. 5960

FRASER