Full text of Commercial and Financial Chronicle : June 18, 1959, Vol. 189, No. 5856

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O i

ESTABLISHED 1839

« I

V

..

I V w

)

•

of michigan

JUN

^ 1959

J

Reg. V. 8. Pat. Office

Volume 159

Number

5856

New York 7, N.

EDITORIAL

As

<

feared, the President's

for relief from the 414% interest
term

ceiling

Treasury securities has become

on

a

gain

an

advantage

Chairman, Board of Governors of the

fwe must

on

Federal Reserve System

Treasuries and/or substitute

the statute books

tuitively opposed
minimum, rate

they

as

of

to more than a bare
in need of en¬

are

are

minding them that
with it

wars
■

%

■

we

the books.

on

are

wealth.

of nearly three-quarters

of

procedures during those years gave rise
serious threat of disastrous inflation
none too vigorous policies of the Eisen¬
hower administrations have done nothing more
at most than to hold in check on a sort of 24 hour
basis. The facts are plain for all who have eyes

grees

what the future holds.
with varying de¬
responsibility are more

Officers

of

securities.
an

familiar

problems

investment

'

•

'

.

'

•'

•>

'

on

page

20

IN

THIS
Club

ISSUE—Candid
of

New

York

in today's PICTORLAL

UNDERWRITERS
-

BROKERS

and

DEALERS

Municipal

/!

:

STATE

.-

a

rates

HAnover 2-3700

and

MUNICIPAL

&

n

United States

A.
I

have
local

our

found

it

helpful to periodically discuss with

officials

some

of

the

30 BROAD ST., N. V

Nbond department

SECTION.

State, Municipal

15 »ROAD STREET, NEW

YORK S,N.Y.

•

014-1400

Bond Dept.

To

ESTABLISHED
•

'

1832

New York Stock Exchange

Block

,

.

American Stock Exchange

NEW YORK 4, N. Y.
FIRST
,

£}QilUuC€&t COMPANY
DALLAS




•

PERTH AMBOY

on

the

Chase Manhattan

Southern

BANK

Securities

New York Correspondent—Pershing & Co.

for

Imperial Bank of Canada
We

offer to buy these rights at
current

Inquiries Invited

Canadian Exchanges

,

,.

California

the'

market.

Municipals

Direct private wires to Toronto, Montreal,

Ottawa, Winnipeg, Calgary, Vancouver,
Victoria

.

Teletype NY 1.-2270

DIRECT WIRES-TO MONTREAL AND

and

*

Halifax

Municipal Bond

TORONTO

1 NORTH LA SALLE ST.
CHICAGO

Department

Dcmdoqh Securities
(orporatioti

Goodbody & Co.
115 BROADWAY,
NEW YORK

BOND DEPARTMENT

(Rights Expiring August 7, 1959)

MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

-

CANADIAN DEPARTMENT
.

1

BROAD STREET

Brokers

Commission Orders Executed On. AH
.

25

v.

Maintained

and

securities

Members

'//

Banks

canadian

';

■■■%/%

Markets

Active

■

'

'

Teletype: NY 1-708

Dealers,

"

Jt

fa

Exchange

San Diego, Santa Ana, Santa Monica
California

T.L. Watson&Co.

'

Bonds and Notes

Pasadena, Pomona, Redlands, Riverside,

Inquiries Invited

TELETYPE MY 1-ttM

CABt.Cs COBUNNMAM

Dealer

"■

Public Housing Agency

623 So. Hope Street, Lps Angeles 17,

OF NEW YORK

Distributor

•:

24

by. Mr. Browne before the 53rd Annual Conference
the Municipal Finance Officers Association of the United States
and Canada, Montreal, Quebec,. June 8, 1959.

Lester, Ryons & Co.

STOCK EXCHANGES

Net

-J.

the

of

Offices in Claremont, Corona del Mar,

THE FIRST NATIONAL CITY BANK

MEMBERS NEW YORK ANO AMERICAN

"'

of

on vaoe

address

Eacino, Glendaie, Hollywood, Long Beach,

Burnham and Company

'

characteristics

Continued
♦An

Associate Member American Stock Exchange

FOREIGN

BANK

'

af¬

The Municipal Bond Market, Its Nature and Size

UTILITY

SECURITIES

CORN EXCHANGE

J/*

and

Members New York. Stock Exchange

BONDS

RAILROAD

CHEMICAL

>•j.-. v.'/-':'.,'./1':. ?.

borrower

conditions

with

fecting their issuance and sale.

Alan K. Browne

Members Pacific Coast

•

the

to

commensurate

California

PUBLIC

-

as

we can

photos taken at the Summer Outing of the Municipal

appear

INDUSTRIAL

Underwriter

well

and

insure

20

by Mr;'Martin before the Ways and Means Committee,
Representatives, Washington,' D. C., June 10, 1959, in
connection with the Administration's Debt Management Proposals.
of

Securities
telephone:

as

and

L'<

\.

banker

sonable

Continued

Bond

Housing,
-

Stale and

the

areas of mutual
concern, seeking ways
continuing satisfactory
market for municipal bonds at rea¬

interest

U. S. Government,
*

of

some

explore, some of the

to

in

Public

with

marketing municipal
From my viewpoint as

of

investor, it is my hope that

Due to past

♦Statement

House

PICTURES

DEALERS

and

Finance

goods in the hands of pro¬

of public facilities, such as
school
buildings,
and
waterways, and of industrial plant
and equipment. The society in which
we live has been popularly charac¬
W. McC. Martin, Jr.
terized as affluent, and, despite our
proper concern for certain depressed
areas, both economic and geographic, I am sure that
we can all agree with this characterization.
One conse-

very
which the

page

today

sumers,

a

on

prob¬

highways,

bound

Continued

..

the daily

of public finance must on occasion take stock of
what has happened, where we stand

durable goods in the hands of con¬

get the government, and the economy back on
more solid financial ground. The thoroughly un¬

'

concerned with

are

we enjoy the benefits which
flow from a reservoir of housing and

one

to

4

who

saving,

a

of the major reasons why we can
not afford to fail to take the necessary steps now

to

lems

us

and quality of the accumulated stock

'

^

.

.

of

than

ducers and consumers.

no

I

5%.

of capital

'

decade) is

Treasuries—assuming

as

The banker also analyzes factors

distinction between the United States
and most other countries is the size

-

#

stance that we did finance two world wars (and
fcarried over the same monetary policy into a
postwar period

change in conditions.
affecting the municipal
market; explains dealer's plight and how to obtain low¬
est borrowing costs; and describes proposed IBA at¬
tempt to popularize municipals.

end,

living today in a country of unprecedented
is wealthy, in part, because of abundant
natural resources; and, in part, be¬
cause of the energy and initiative of
our people. An even more important

*
\

billion with 1960 pushing $9 billion; and (3) corporate!
will not be as competitive as mortgages or, in the short

money.

effect and make

»

re¬

*

was

receding faster; (2) $600 million increase in longmunicipal financing compared to 1958Y $7.4

term 1959

It

The fact of the matter is that the very circum¬

r

and

Those

We

managed to win two major

-

■

M

this limit rather than

remove

supply's growth

money

lightenment on this subject. Statesmen with the
good pf their country really at heart should be
explaining to the voters why it is now the part
of wisdom to

some

an engine of inflation.
Mr. Martin doubts under
today's conditions, we could peg the interest rate on gov¬
ernments; criticizes proposals to offset inflationary im¬
pact of pegging by other central bank moves and lists
pegging's deleterious after affects, and notes recent

though it probably
the rank and file, in¬

interest,

reverse

a

(1) somewhat higher long-term
1959, leveling off at year's end with
decline in early 1960 and short-term rates rising

interest rates for

the Fed

should be ashamed—even

men

artificially created

Claims the latter would have

be freed of it. Such an attitude is,
political tactic of which real states¬

•is true that many among:

Mr. Browne anticipates:

In a plea for realism, Mr. Martin states the
important
thing is whether, sayings and negotiable government
bonds can be used effectively in debt management.; To
lower the interest rate, he adds, we must increase sav¬
ings or decrease borrowing, and not peg the par value of

now

of course, a

Vice-President, Bank of America N. T. & S. A.
San Francisco, Calif.

longer

happens that after having financed two- World
with this restriction

Municipal Bonds

By ALAN K. BROWNE*

political,

party) that the people will wish to know how it
.wars

Market for

By WILLIAM McCHESNEY MARTIN, JR.*

the President and his

over

Copy

a

The Prospective Volume and

Rate Policy Is Dangerous

proposal

jeven a partisan issue. It is being said {by those
jwho are always looking for an issue with which
to

Price 50 Cents

An Unrealistic Interest

to be

was

Y., Thursday, June 18, 1959

IBank of Amruiat

Associate Member of American Stock Exch.

40

Exchange Place, New York 5, N. Y.

Tet WHitehall 4-8161

Tele. NY 1-702-3

300 MONTGOMERY STREEI

m jH

SAN FRANCISCO 20, CAUWWItJ

The Commercial ancl Financial

2

Chronicle

Thursday, June 18, 1959

(2734)

Banks, Brokers, Dealers

For

The

only

Try "HANSEATIC"

This Week's

Security I Like Best

Max

participate and give their reasons for favoring a particular seoyrity.

Our experienced trading

(The articles contained in this forum

department offers

Trigger-quick
reaches

a

are

they to be regarded,
A.

service and
range of

„

block.Exchange (Associate)

American

sure

"Try HANSEATIC."

New Yoik Hanseatic

Corporation

1962

—

Notes due
J. Levy,;

ll/>%

Bought—Sold—Quoted

Robert

Partner, Robert J. Levy & Co.,
New York City. (Page 2)„
7 i

Steiner, Rouse & Go!

^

,

demonstrators,'
system of branch

n(f

set

a

Members American

A

■«,

American Stock Exchange

York 5

nio

Birmingham, Ala
Mobile, Ala.

Direct wires to

BOSTON

•

STOCKS
7 For current-information

Call

Wires

to

Securities Company

Principal Cities

TOUne Bcrnrns

coSics atCunvoii.e?ea"rthe 7 SA
Eur°Se7^ "if
ierm^ro^h,"highly
cosmetics at a youn^ei
atoe, tne the Common Market will also- berMax u Factor- &
Co
optional

tremendous expansion in

*

Acquisitions

*

Discoveries

*

Gas Price Increases

newer
greater
leisure
buying
power,
greater
leisure
time and the growing emphasis on

hi.vintr

Affiliate

recLmend
Our

"

'firm

for

many

have

A*

I

Past growth offers some indica- •

tion of what may come

FIRST INVESTMENT

have
since

SAVINGS CORP.

tions.

Birmingham, Ala.
TWX BH 456

the

an

desire

for

that

downturns.

to

personal

care

$44

milii0n

—

Liquid

Exporta—Imports—Futurej

^ Not.es
APr,,»-*962

5 3%

a highly successful

quarter in 1958. carried
sales above $45 million

turity. Any of
the Treasury

ing within two

shares of Class A •:
and Common stock outstanding, :
which represented a 6.2% profit
•

7, .v

or

were

tlon'

^reene^iCompttiau
Established

1930

able,

very

Teletype—NY 1-1127

£

(Casa International

National Cleveland Corp.

?unta Alegre Sugar

§yntex Corporation
Texas American Oil

Direct Wires To

Los

Angeles—Marache, Dofflemyro
& Co.

Denver—Lowell, Murphy &
Company, Inc.


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

tinue

throughout: the year, ppsh-

of

current

ing

sales

comes

from

sales

in

relation

to

its- po-

Perhaps

.>

J
S

offerings.

we can

help.

mm
'

ALBERT J. CAP LAN 4 CO.*

LOCW STREET, PHItA. 2, PBHNA.

but I
chosen

Note because
it

offers

of

the

all

advan¬

DETREX

tages of short-

CHEMICAL
INDUSTRIES

term Govern¬
ment

Notes

BOUGHT

—

SOLD

with certain
Robert J. Levy

additional tax

advantages

From

an

affirmative point

of-

view, short-term Treasury Notes

over the
the profit

reasonable

submit your

this particular

$50 million are desirable for the following
Max
Factor ; has
made
giant mark. If
margin does reasons:
strides in each of these areas. Max no
better than; remain, steady,-- '(f)'if held to maturity, there is
Factor, Jr., President is a noted earnings per share will come to ^ot only no risk of loss, but an
fcFeater-otosnictic firsts and pe^.$1.60, <
*•
■
assured capital profit.
The 1V2%
sonally heads
staff of very fine
Based on a recent price of-19, Notes due in April, 1962 are sellsdentists in chemistry and related the stock is selling for about 12 i,lg at approximately 92 24/32 to
fields. Their success is pointed up times
earnings—lower
than its yield over 4.15% to maturity. Only
by the fact that a sizable propor- major competitors, and certainly slightly more than 1V2% of this
tion

Bell

HAnover 2-4850

1

,

vwwm

three years

have

again

rate of sales increase will con-

INACTIVE ISSUES j

'

AVi

would be suit-

.

First quarter 1959 results

|
7'i
jdt

{

;

11VIIID

Notes matur¬

earni,lgs to $1.32 a share on ;
2,115,500

-

7'7 %

•

'v.;7:

fourth

ratio.

7;T

•- »■ If you can't find a
home for certain VI. jyui.
of your

0

^en to

the

7

•'

r

.

.

large organizations now ap-

nnV thnrnXhp. -? '
gnd thorough-national distnou-

Telephone

<

INSURANCE

"■

J

'The Security I Like Best at the
present time — and j repeat, at
the present time — is a U. S.
Treasury Note of short-term ma-

■

DIgby 4-2727

0

v''r's\*7 Associate I'}/, 7'1:- 7.
Troasurv DA^
Notes • :
'

>;'«

,

SUGAR
Refined

»

noteworthy, with earningS up 63% to 39c a share from
ply
to
the
cosmetic
industry, 23c in the initial quarter of last "
which traditionally has been com- year
with sales rising 11% to
posed principally of small units. $11,700,000. The margin was 7.0%/
This
will
become
increasingly thus indicating the company is
true in the future as it takes capi- regaining its ratio of profitability
tal resources to. .afford the con- as
earnings catch up with the
tinual creation* of new pi'Ouhcts, sales increase
'
the high cost of mass advertising,
Managcment has forecast the

favor.

—

1957,
reorganization

and

at'the* marl
g.jns which dropped to 6.2% and

annua,

,

an<1 Amerjeaii Stock Exchange
.

g6ihg oyer f*
but the: in-:.V;7^,Due

efforts chipped away

and

cosmetics and toiletries now

rapidly lih,

up

years

in

sales

tensive

and

has become so strong

The distinct business trends which

Raw

two

next

The

approach basic human needs.

moved

the

Which companies will gain most
from this advantageous climate?

NEW YORK 5, N. Y.

gales

]ion

national product, even
during
recession
years
which
should put to rest the old bugbear
that the industry is exceptionally

cleanliness

STREET

0f 8.3%; In 1955, the margin 7
of,;$28 mil- 7

reached 8.8% on sales

gross

vulnerable

ILAMB0RN & CO., Inc.

in the fu-

industry basis, sales
been higher in every year
1914 with only live excepIt has consistently outpaced

On

tare.

WALL

;

ROBERT

STOCKS

Summary report on request

99

-

Broadway,N.Y. 6COrtlandt7-5680

111

LIFE

LIVINGSTON OIL CO.

rAirfax 2-0585

*.

Investment; Bankers

nosition in the stock

the earnings

404-No. 21st St.,

;

.

Tokyo, Japan 7
Brokers' &

a Posltion LEVY stock.
m me
J.

u™e

years

a

j">.

,

-

n

fjmG

of

Yamaichi Securities Co., Ltd. *//•

-

tn Factor which has had
f* ^u;
u;.
I
Doon to ractor wnicn nasthere and/or its partners from time to
naci
established organization

■ hnf
an

personal care. These buoyant l'ac-

sharply increasing
of »

are

sens-5

in

even

a

still

which

„<0ck

Inc.

of New York,

®pid Vise"^1pTpSlattoiT1with^a saieS,,0£ cosmetics oI° toiletries.
looking for a'
use in population wun a "1f"ren]°test
and
makes
the trend'toward!
sdthanalthe m^Uy and climate o/erating
™a/
Tinan exciting
ht
if for long
young persons, tne trena lowaras in rugh
faster »
rapid

Very recent

write •"'

777 Yamaichi 7

SAN FRANCISCO

Private

or

mv

CHICAGO

•

:

branch offices

our

japanese

,

Teletype NY 1-40

WOrth 4-2300

PHILADELPHIA

'

NY 1-1557

HAnover 2-0700

/

New Orleans, La. -

.

Established 1920

-

Stack Exchange

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

C increase

p.

York Stock Exchange

Members New

-

traveling

moved

.

Associate Member

120 Broadway, New

Treasury

April

em-

Max.Factor 8 Co,

you're getting
widest possible coverage,

j

demonstrators,

S.

U.

doubled its direct salej
established training schools

store

for

Louisiana Securities

Fox,

A.. B.

—

1
>vould seem to place a dividend
within the realm of pos'production facilities have been"sibility in view of the rising
In a market in which some of
m0dernized with a 215.000 sduare-'eathhigs- and somewhat lessening
the more popular stocks are sell- f
t building in Hawthorne, Calif.,
demands for capital expenditures,
ing at precariously high levels,
d
pl*nts in several of the ; Adding to its attractiveness, the
the natural tendency of many inforeigr} nati0ns in which the firm JS studying some mediumvestors is to search longingly for f.\
mannfartures
makine ooer- sized companies with related lines,
securities which show more evi™
f especially; in the proprietary .drug
dence of current value, but also
;
Jf y
field, which have characteristics;
hold promise of substantial future
the assistance ol distriba^ that , can be integrated .with
growth.
?
s' the company s products
Factor's current activities.' Of
The cosmetics and toiletry inP,ow sol?,lnrri96 countries around particular interest are those that
-d.ustry provides just such a vehi- *he world. This major interest in coulci benefit from Factors marwith
favorite being the tuiejgn. sales,
once thought to j^ting. advertising, sales promo.

the

/

posi-

regions

force,

Co.

&

Fox, Los Angeles, Calif. (Page 2)

tion. It has set up four marketing

and Pacific Coast Stock Exchange

wide wire system.
To make

,

Members: New York Stork. Exchange,

nation¬

our

.v

Factor

Partner, Stern, Frank, Meyer &

,v

nor

strengthened its competitive

FOX

•

Contacts through

intended to be,

not

are

offer to sell the securities discussed.) h

Siern, Frank, Meyer & Fox
Los Angeles, Calif.

Partner,

broad

B.

as an

Alabama &

Their Selections

each week, a different group of experts'
the investment and advisory field from all sections of the country

A continuous forum in which,
8n

Participants and

Forum

return

is

taxable

as

MORELAND & CO.
Members

Stock

Midwest
Detroit

Stock

Exchange

Exchange

1091 Penobscot Building

DETROIT 26, IMCH.
WOodward 2-3855
Branch

.

DE 15

Office—Ba,y City, Mich.

ordinary in-

products
developed
in
years.
In _theresearch

recent Jgptial. B?se$ on a comparison of' come. The balance of the return,
efforts, first quarter figures, Factor's 63% approximately 21/>%, will become
primary attention is given to de- increase in earnings was the best taxable in 1962 as a capital profit
veloping items which will become reported in the industry.
" at" the Capital Gains tax rate of
staples rather than mere fads.
Consideration of dividends has 25%~~ ~
Thus in Factor's present product
become rather old hat in .some
*• (2) An investment in a Treasury
mix, there also are a number of
circles, but at an 80 cent annual Note of short maturity assures the
items introduced quite some time rate, the Class A stock at* 20 is availability of cash at'any time
ago
which still contribute sub- yielding 4.0%. Of the 2,115,500
short
notice with minimum
stantially to volume. The com- shares outstanding, the Class A j£k of only
dtf^
pany
manufactures a full line listed on the American and Pa- preciation
should
the investor
consisting of make-up, face cific Coast Stock Exchanges ac- wish to sell these notes before mapowder, lipstick, rouge, hair prep- count for 909,837 shares and the turity
'
arations, hair pieces, skin treat- Common
(held by the Factor
/3) There is a large market for
ment items and men's toiletries,
family) re p r esents 1,205,663 these Notes, the bid and ask price
These products, with the excepshares. The two classes of stock being within a few 32nds of each
tion of hair pieces, are sold pri- are equal in all respects except other
and
for
quantities many
manly in the popular-price range that the existence of the Common-^ times the maximum amount that
through department stores, drug provides method by which*-the even a large investor would cornstores
and
the
rapidly-growing Factor family can accept1 lower
thi
ecuritv
°ritlet.
dividends than are paid on the •
^4^ In tlie event of lower money

A

>0

fr^ionS^capital

s, - permitting a larger re- ratve
which could ensue during
investment in the firm. In 1958, the n'ext three ear the investor
lor ?xamP;e' wh.en the ,Class A could obtain a larger return than
received 80c a share, only 25c a th indicated 4.15%, while an in? Jeo^am2a- share was declared on the Comin short-term money rates
marketing structure mon. holding the actual payout

,f ™ ;7es7,7e.ar^ -in
;7e; f'nS- both television
? 7nn T7i7^.7. «pa ,empha"
77 P7 7 7wC
S'
v

♦inn
tion

in

nf
of

1957,

the

the

company

9

•

has

to

the

conservative

36%.

This

-

Continued on page 43

N. Q. B.
/

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
20-Year Performance

of j

35 Industrial Stocks
FOLDER

ON REQUEST

National Quotation Bureau:
Incorporated

46 Front Street

New York 4, N.Y«

Volume

189

Number

5856

.

.

The

.

Commercial ancl Financial'Chronicle

(2735)

IN D E X

*

»ji;
'*

And What Must Be Done

)•

'•

"

'

'

1

,

f

<

Articles and News

I.S*'
1

/ •!

••

V;!."-

Partner,'Smith, Barney & Co.

.4 The

New York City

K.

and Market for

Municipal Bonds

Browne.

-

LOVE IS OUR

Cover

'"//

./

.

Prospective Volume

-x—Alan

'fix":

:

/'

j*

,

"

-

Page

i.2

'

By HOLDEN K. FARRAR*
"•I'.

Policy Is Dangerous
New York investment banker states that next decade's
that
decade s capital
capital/./William McChestiey Martin, Jr.•
.Cover
requirement, so as" to effectuate/a conservatively-anticipated
'

$690 billion 1970

for

economy

about $45 billion

average

15
215 million population;

a

a. year

in the 1960's and entail

■// ;'.J^be 1970 Investment

may

a

Environment: And What

r^rHqlden.ICFarhu/,1^

rise

-■f

..

it

r

J
J
7. n L'
,
trend, and of. inflation,, improved

,

tion of

^

.

'

managed

economy

."All ImvestmOilt and

■

.

i

-

Speculation in Asbestos—Ira U.
Cobleigh
J. "
• ' "•<—
■
*•■■■'. //. //•■-'•
' i'. ■' ". ;•
v_

««-

...

i

.

.

„

4"

99

/ \

■•

WALL

love

we

:

STREET, NEW YORK

Telephone: WHitehall

;

4-6551

.

and American Business '
■;
:
;

'//'/ >*'*

6
relationship with stockholders,. labor and the. financial
it sob ligation
community/ andinvestment banking adherence tot its obligation
//. / :The^;' TlftrtJi About Consumer Credit—William J. Cheyney_
7
of creatively and intelligently raising
necessary funds at the// •/////< ?>/?''«'-//•
/•' v.p/// //!/;:///;•/;//y\// ;l"
V".;V
lowest possible cost; .:;Maintenance
rdr investments
The L.ong/i'erm Textile Outlook—William H;
Long-Term Textile
/of < a sound investments
Miernyk......
9
Miernyk—
climate, Mr. Far ran concludes, is fundamental •• if wei are to

porate

gold,

Obsolete Securities Dept.
a

^nax?irl Rockefeller
—DavicI T?nMrA{.nlT4av

^

of

cash for obsoletes!

pay

g

//■
fr«
\e> European
* ' ,'lheEuropean Common Market
Common

cor-

to

/•

Must Be Done

;

in

new
offerings from $9.5' billion in 1958 to $15 billion by
1970; The underlying importance of a' favorable investment
climate is stressed and is; shown to. require: tax
reform, cessa-

Having hearts

~

!

.

PROFESSION

An /Unrealistic Interest
Rate

*

3

*food: fair

_

,

properties

.

WL

:

•

reeves

reach

::i //■"/■>

soundcraft

/•/

I hope my
"Investment Environment

•;

*purepac corp,

•-/Must Be Done

..

'

^

} does not mislead

create

and

the

Am press ion.
/ that I have an/ s

V fn

efficient

than ten-fold increase since 194i;
pch
Research

on

in

this .scale
scale

is

.a

empire state oil

:new
-;new

/

-

,

......

;

;

;

and^many.;/^v 1
a Sllver Lining—Howard Freas_____L______:- 12
beginning/to'/^ :t ;^/•-' / ../-/ "/.'.•
r'-'/'y-v~
e
explore its possibilities. >
**e Must. Run Iiard to Win tlie "Race Into Space"
;
?

} factor

erys-; >

our

economy,

standard

nies,
companies are onlv

v!' tal ball. To be

j

uranium

.

frank, I

am

in

-Wernher Von Braun____v_
Therefore, with some knowl¬
14
edge of what the trend's are, we
perhaps just a bit of the
-:
•
'* •,
8,!. r *>
x\
t
potential of our 1970 economy.! / N. Y. Life
Insurance Dept. OKs Exchange of FNMA
Holdings
This does not mean we will be
-

/

no

;

sense

a.

alaska oil

r

constantly

with

whom

I

because

fession

:

-p thought

the

does

■

-

~

> •

that

mean

if

^

decisions
K.

Farrar

we

(Letter

Of

our.

"Prospectus

■M

economic 'Cli¬

the

and

'
.

Editor)___.V________

■

See

It

(Editorial)

J.F.Reilly & Co., Inc.

:

/•".T-/ ' //
,+ ;//'
/Bank and Insurance Stocks...!.

>

28

Regular Features

<As We

request

on

of Keynes

mate is

intrigued
in our profession
primary functions is ?

one

to

27

::/

-r.

■

.

./?

the caption, for

4'

'

BernsteimComes to Defense

'

;

make-/

favorable,- we- do have the
potential of equalling.or exeelling
with
previous economic trends.

I- was

:

/

^

ok busi-r'/

level

f

-

the right business and investment
Holden

upon
h e r

t

r

u

It

on

'/: record,
•x f

there

activity.

ness

high

these

>

/Treasury Issues_.rr.....r_...._.„

levels
wilk obviously be

at

fluctuations in

con- '
the

"

Fa„ tt

.

tomorrow.'

/} With this

•

.

to have* lunch
*

.

.

supposed

am

..

:

can' see

membering

f

i

equity oil

.

soothsayer,
having
difficulty
in
re-

;

Cover
"

•"

1

'

n

!.

._

21

!1 the-raising of capital

■

---

J: and state and local

4

3d:

~

*

-

Permachem

{/

••

~

*■.

•»*":

'•.

It is not unusual to
8
•'

3

---

50

even

Therefore;

years.

in

population growth. 1

a

Ling Electronics

that

am sure

—

„

Pacific Uranium

r

—-----

..

:

be

try

-

-1

.

,

;

,

,

or

A

but

that the particular indus-

sure

..

/t

w

i

,

particularly

those

"

their

of

i *urn

children, if they happen to-be in

government financed will

»»iim-aii

in

the future.

the grandfather class. .Falling.;m
/
z~r love, and maiTiage'with'its1 usual " " MdtuarFunds

■

wie ivews—Carlisle

rsari

--

/

Indications of Current Business Activity

be-doing business for a long time

1

oi

r,

.

;

--

13

—.

.

-

........

...

Sonoma Quicksilver

•

i

<

33

/•
—

;

/..:' ReevesSoundcraft I

19,

Singer, Bean

29

end results, is one of manV eaiii-t

Many clues about the future are
'

be

to

found-by

'

our

:

economy

We

look

a

at

est and most consistent activities

what

and the base is being broadened/

has done in the past,

for example,

know,

throughout

the

that

News About Banks and Bankers...!.

the

Those /of

world.

r

&

18

...

been

has

of

one

dynamic

*

r

Overall,

growth.

the

amount

-

have produced

/ .'goods we

in

--

ties find the impact of this popu-/

of

-

lation

this

—

25 increased taxes for new schools,/
It has been said that the the tremendous, increase, in the/

:"IAmericam-.economy
-1

current /

I every

.

_

42

poverty

of

"

"

facilities in our hospitals as well
as the drives for contributions for

5 We also know that

;

/

•

f

nological revoiutibn: Never before

Population

have

The chart shows

we are

have been in the midst of

--

Dallas

a

.

—«

spent

as

.
.

products. and

i
?

:

much
into

Chart

tech-

I

shows

the

growth

16

34

and additional church facilities. /

on.

government

research

being

r

and

more

improved
-

new

Academy Life Insurance

explosive

lying

41

ahead.

our

American Investors

population

By 1970 this figure is

,

minimum of 215 million,

,

CrBfise

Associa"'0'l• Chi-

Of/

23^%.,

Some

Continued,

•

The

conserva-

tively expected. to increase ta

f

28

an

Market

and

You--

in--.

—

many years wen nrrr

Century Geophysical Corp.

:

FINANCIAL
Reg.

WILLIAM

25 BROAD

New

York

Stock

U.

B.

/!

.

.

Exchange

Reentered

as
second-class matter Febru¬
1942, at the post office at New
York, N. Y., under the Act of -March
8, 1879.

ary

Office
Publishers

RECtor 2-9570. to 9576

WILLIAM

SEIBERT,

Subscriptions

J

Possessions,

United

Union,

National Union Life Ins. '
Oxford Life Insurance

States,

and

$65.00

U.
Members

S
of

per

in

Dominion
Other

Thursday, June 1ft, 19S9

ST., NEW YORK 4, N, Y.

in

Territories

Pan-American

President

Great Western Life Ins.

25,

Subscription- Rates

MORR1SSEY, Editor

DANA

Acceptance Corp.

Equity General Insurance

Company

CHRONICLE
Patent

DANA COMPANY,

GEORGE J.

"

.

S.

Denver

Copyright 1959 by William B. Dana

,

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

/..

Members

44

Published Twice Weekly

THe COMMERCIAL and

nnrij CTflPKQ

Spencer Trask & Co*

Cambridge Life Insurance
4

26

iili■ lh ii lll 0 i uuiio

specialized in:I

•
common

2

♦si.

/

have

Corp.

Atlas Credit .common & B

SOUFCeS

on page

Corp.

American Investors Life Ins.
AIco Oil & Chem.

16

a

Washington and You.

For

-

at the end of 1958 at 174 million,

methods,

Pro^ssfona^'^Bvestor^Refations Seminar,

X>:M."y

Angeles
Chicago

19

'

brought

Los

Cleveland

Markets and Information:
Securities Now in Registration.

—

industry /and

to

'

need for obstetrical and pediatric

abolishes

definition

50 years.

its

inc.

Exchange Place, N.Y.

Direct Tfires

Philadelphia

has " doubled ' every

J country
years.

25

San Francisco

clues ias,

by .such

surge

40

Teletype NY 1-1825 & 1-4844

living in surburban communi-.

us

-

5

—*

•

record

MACKIE,

HA 2-9000

Observations—A. Wilfred May..'.

year,

of
Canada,
$68.00
per
Countries, $72.00 per year.

year

United American Investment

Western Heritage Life Ins.

"

TELEPHONE HAnover 24300

*

TELETYPE NY 15

Every

Boston

Nashville




1

Chicago

Schenectady

Glens Falls
Worcester

(general news

and

Other

ad-

Publications

-

vertising,; issue)

plete

Afbany

Thursday

statlrtieal

records,

and

- every
Monday (com¬
issue-—market-quotation
news, bank clearings,

corporation

state- and city

news,

Bank

$45.00

and.

per

Note—Oh

Quotation

year.

Record—Monthly,
Postage extra).

(Foreign

account of

etc.),.

the

fluctuations in

;tup
r^.te
of
ex^hansre.
'•emntnnces
for
qffTes: 1**1?
** S*Jle St., foreign suhscrinH— —' •'*
'dements
Chicago 3,""111. (Telephone STate 2-0613). must bo made in New York funds.
n«*vr

.

Searight, Ahalt & O'Connor, Inc
New York, N. Y.

Washington, D.C.

"

\

4

The Commercial and Financial Chronicle

(2736)

steadily
for
21
while financing major ex¬
pansions, entirely from internal 5

sources

Speculation in Asbestos
By DR. IRA U. COBLEIGII

Enterprise Economist and Author of "How to

Get Rich Buying Stocks.

Containing some news and views about two interesting com*
panies specializing in the production of one of our less heralded

all

—

Asbestos

purchase at 8V2
high.

its

eral

vital
'our

selves).
been

points

have

asbestos

in

made

fortunes

those

of

could

construction

teresting vistas of profitability in
some of the companies now busily
at work extracting and milling the

industry, it's
ex tensively
as¬

ore

bestos-cement

and

are

used

in

Ira

tiles;

floor

is

bestos

U.

Cobleigh

and

board

There

companies
particularly to

in transportation, as¬
vital ingredient in

a

coatings.

displayed the word "Asbes¬
tos" in big bold letters. Asbestos
textiles
are
still
a
"must"
in

The growth

that

ration,

Ltd.

of Asbestos Corpo¬

has

been
assets,

quite re¬
markable with
excluding
theater curtains and fire fighting land and mineralized areas, in¬
creasing
from
$9V2 million in
units.
1945 to $32 million in
1958, after
After this brisk salute to asbes¬
depreciation charges in the period
tos
its
appropriate to
inquire of
about $16 million.
Working
"Where do you find the stuff, and
capital has been well maintained
is there any money to be made
amounting to , $6,845,637 at the
producing it?"
Well asbestos is
1958 year end.
usually found in veins in other
l ock.
Capitalization couldn't be sim¬
The most common commer¬
cial type is chrysotile
asbestos, pler, consisting solely of 1,800,000
occurring in serpentine. Canada is
the

shares of

common

treal and

major source of asbestos, ac¬
counting for about 65% of the

shares

world's

now

listed

in Mon¬

selling at 28. These

split in

production; and the head¬
quarters of the Canadian industry
is

less

are

in

Eastern

Quebec

Townships, South
rence
River, and
below the City of
region. Canadian
85

over

a

years

of the St. Law¬
60 to 80 miles
Quebec. In this
asbestos got its
ago and, in total,

hundred

separate

compa¬

the result of

a

3-for-l

1951; and since 1951 per
earnings have never been

share

start

lieved

be

to

the

among

•

than

1958,

a

dends

the $2.30 reported for
depressed year. Cash divi¬

have

been

generous, rang¬
and 70% of net.

ing between 60%.
Last

year

share

was

same

payout this

the

on

mining there, both open pit and
underground. One of the earliest
and largest is the Canadian-Johns
Manville
property at Asbestos.
After extraction, the ore is
crushed, dried and screened, and

over

per

$1.75 and, assuming the

Asbestos

nies have since engaged in asbestos

distribution

i'ear,

common

the yield
at

28

is

6%.

increasing use of asbestos
throughout the world, the effificiency of its quite new Nor¬
mandy mine, and the capacity of
Asbestos

Estimating these

a

ton (based on

lor

raw

Corporation, Ltd. to

pay

-

reserves

at

.

CONSTRUCTION—Private
while

Lake

trial

nor more

,

Lake

Asbestos

seasonally,

will
"

three

years after com¬
regular production;
thereafter a depletion rate of

will

be

in

allowed

deter¬

mining profits subject to tax.;;
Here then is a quite romantic -•
new
entry into asbestos produc¬
tion enjoying the benefits of
(1)
strong sponsorship and fine man-agement by American Smelting
and Refining;
(2). a proven ore
supply sufficient for 28 years of
operation at present mill capacity;
(3) a favorable tax angle; (4) a.
cost highly efficient mining
milling operation: (5). a ris¬

and

ing world-wide demand for asbes¬
tos; (6) $3 million in new cash
from

resources

January.

financing

last

Asbestos

shares

sold this year as high

as

have

$7 3/16.

At current quotations of about

$5
(4,356,900 shares out¬
standing), United Asbestos pre¬
sents some interesting potentials
for gain through low cost produc¬
share

of

tion

—

With the average workweek at factories up about

weekly earnings increased to $90.32, 10%
above May 1958. 'Unemployment again declined substantially; the
seasonally adjusted. rate was 4.9% of the civilian labor force
average

with 5.3% in April and 5.3%

compared

in March.

DISTRIBUTION—Seasonally adjusted rctoil sales have in¬
creased continuously this year, and in May were 2% higher than
in

April and 10%/above a year earlier. Sales at durable goods
outlets remained at advanced levels in May while sales at depart¬
a number, of other groups rose substantially.
The

ment stores and

number of

new

autos sold

of year since 1955.

was

at the highest rate for

mineral fiber with

a

this time

v

COMMODITY

PRICES—Average wholesale prices of indus¬
in May and early June at a
a year earlier.; Prices of textiles
rose
further, steel scrap- turned up, and nenferrous metals changed
little, while prices of hides, rubber, lumber, and some other sensi¬
trial

commodities were unchanged

level

2Vz%

higher than

tive materials declined somewhat
Wholesale

following substantial increases.

prices of farm proucts and foods declined slightly.

Supplies of foods have been larger than
consumer

lower

a

year ago

demands have

increased, food prices
than in the spring of 1958.

BANK

CREDIT

AND

RESERVES—Total

-

United

a

reduced level.

a

Seasonally adjusted nonfarm employment
increased 230,000 further in May and, at 51.1 million, was 2 million
above a year earlier. Gains were widespread
among durable goods
manufacturing industries," which accounted for one-half of the
total increase.

Asbestos.

exempt from Dominion income

and

the

building remained at
EMPLOYMENT

mencement of

33R}%

below

housing starts in May,
March-April level, were at a high

adjusted' annual rate of 1,340,000 units. Total new
construction put in place changed little in May at a level slightly
below the record high of March. Commercial building
activity rose
sharply further, do: a/new high, but private residential, utility,
and total public'construction continued to decline. Private indus¬

As¬

Brightening the picture here is

for

somewhat-

nonfarm

seasonally

and

60%.
Pre-production
ex¬
penses
($37 million) are to be
repaid out of 75%. of first net
proceeds pro rata to both United

be

Steel mill

Activity in the nondurable goods industries in May was about
Output of apparel and leather
products, and of such industrial materials and supplies as textiles,
chemicals, and paper rose further. Activity in the rubber industry
remained at reduced levels, however, as work stoppages continued.
Output of mineral-fuels and metal ores increased.
\V

than

taxes

Business Failures

one-tenth above the highs of 1957.

present prices

ceive not less than 50%

that

Industry

.•<•»

bestos, under the original devel¬
opment agreement, will divide the
net proceeds from production in
such a way that United will re¬

the fact

Index

tion of nondurable goods,, which had surpassed earlier highs by
mid-1958, continued to expand and output of minerals increased.
The gain in output of durable "goods industries was broadly
based as output of finished products and materials expanded.
Production of farm machinery; motor trulks, and industrial and
commercial equipment showed further gains. Output of household
durable goods and autos also rose. Production of building mate¬

fiber) indicates

Asbestos

Lake

Price

operations, maintained at 93% of capacity in May, rose one addi¬
tional percentage point in early June.

$425,000,000.

and

*

Retail Trade

rials and most nonferrous metals continued to increase.

total ultimate recoverable value

low

The

'•

,

tons.

$10

United

Carloadingo

•;

_

Totally

and

of

)

Commodity Price Index

1947-49 average) 2 points above the revised April figure and 6
points or.4% above the prerecession peakyin/early 1957. Activity
in the durable goods industries advanced to a-new high. Produc¬

United

a

:

Output

INDUSTRIAL PRODUCTION — The; Board's seasonally ad¬
justed index of industrial production rose, in?May to 152% of the

largest

richest in the world.

asbestos

i

* »«

Production

Steel

V Electric

i ;, ;

posits located at Black Lake, be¬

Asbestos spent S2 million
ASARCO,
$35
million
in
dredging the lake, development of
the mine, and the building of a
Asbestos Corporation, Ltd.
The first is Asbestos Corpora¬ super-modern mill as tall as a 14tion, Ltd., the largest independent story building, with 11 floors for
crushing and drying rock, sepa¬
producer of asbestos in the world.
This dynamic enterprise, with a rating and packaging the fiber.
The mill started operations June
long history of growth and prof¬
itability, operates three properties 29, 1958 with a capacity of 5*000
tons of ore per day, and an ex¬
-in
the
Quebec area, aforemen¬
production -capacity**-of
tioned.
It either owns in fee, or pected
has mining rights on, 33,000 acres 100,000 tons of asbestos per year.
Proven reserves for open pit min¬
of serpentine-laden
lands, and
at 42' V million
has
ore
reserves
estimated
at ing are placed
wanted

we

linings, clutch facings,
and automobile underPacking and friction
materials of asbestos are widely
used in machinery; and asbestos
is uniquely useful in insulating
111,345,000 tons as of Dec. 31, 1958.
electrical equipment, boilers, fur¬
The company is continuously on
naces,
pipes,
and marine ma¬ the
prowl for new reserves and
chinery. Increasingly asbestos is has
recently been prospecting in
being used in vinyl and laminated
Northern Ontario, Yukon Terri¬
plastics.
And we all remember
tory, Newfoundland and Mexico.
the
old-fashioned
stage curtain
brake

gaskets

centered

Asbestos

Quebec, Ltd.', for the bringing
into production
of asbestos de¬

and

i

~l

Expansion in industrial activity continued in May, employment
increased further, and the decrease in unemployment was again
considerably larger than; seasonal, the Federal Reserve Board
announced June 15. Consumer incomes and buying attained new
highs, and business plans for plant and equipment outlays in 1959
were revised upward.
Commercial bank loans and the seasonally
adjusted money supply continued to increase.
Security yields
tended; upward in May and early dune.; Wholesale prices of indus¬
trial commodities gerierally changed Tittle/ . The Boards summary
-of national - business conditions ^-contained the. following:

touch upon today.

wall

and

more.

Canadian

two

which

siding,
shin¬
gles,
roofing
shingles, clap¬
board, corru¬
gated
sheets

exploring for

•

Auto Production

and

into an agreement
Smelting and Re¬
Company, and. its 100%

(as the wives of Tommy Manville
,.owned subsidiary,- Lake
testify!) and there are in¬ of

industrial

society. In the

,

more

a

American

with

fining

,

Food

bestos entered

profitability there

"*

1959

United Asbestos Corp., Ltd.

sporting
turn of mind, a look at another
Canadian asbestos share might not
be amiss. It sells at around $5 a

:

About

plays, a
part in

\

,

deal

resistant min¬
'

*'

of Trade

State

fibers
which
remain
are
about the
share, and is listed on the Ameri¬
major minerals such as bauxite, graded as to length and quality, can, Toronto and Canadian Stock
nickel, copper and iron, but very packaged, and sold to fabricators Exchanges.
Its name is United
little
about
asbestos.
Yet
this —(in the case of Johns-Ma nville Asbestos Corporation Ltd.
and
Flintcote
heat and acid y
Mills,
to
them¬
In September, 1952, United As¬

great

a

„

The

not un¬

a

'

in¬

well

a

ty

that

suggest

is

common

attractive
below

these

investment and

sulated

For

minerals—asbestos.
hear

We

W-; '*'

years

a

Thursday, June 18, 1959

.

.

dividends

cash

An Investment and

.

and, although
5%

average about

commercial

bank

credit changed little iii May.

Sharp expansion in loans continued
but banks reduced their holdings of U. S. Government securities.
The seasonally adjusted money supply—demand
deposit and cur¬
rency holdings of businesses and individuals
increased $300
—

million further.

"

Member bank

;

borrowings from the Federal Reserve averaged

Continued

-

on

over

page

3,600 uses.
The long range demand for
bestos

appears

steadily

as¬

upward/

the price structure has been
favorable to producers in recent
and

In

years.

price

Correspondents inprincipal cities

to

throughout the United States and Canada

of

10%

there

UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES

Dominick

&

Dominick

14 WALL STREET




Exchanges

days

grade; and
increase, in

stocks

when
have

bearing
the

equities

merits

grade

Grace Canadian

Securities, Inc,

Members: New York Security Dealers Association
so

many

taken

on

strable merit selling at not absurd
prices. If your mineral tastes run

investment

Principal for

the

phantom market valuations, it is
refreshing to find issues of demon¬

25

Broadway, New York 4, N. Y.

HAnovcr 2-0433
Orders Executed

dividend-

at

NY 1-4722

regular commission rales

through and confirmed by

then

pondering
of Asbestos Corpora¬

tion at this time may be reward¬

ing; but if your tastes
to

NEW YORK

on

another 5%

as

Brokers, Dealers and Financial Institutions

5%

1957.

these

common

to

Members New York, American & Toronto Stock

depending

was

October
In

January of 1956
asbestos was raised

Specialists in Canadian Securities

run

more

low-priced

you

zest

speculations then
may find considerable market
in

the

future

United Asbestos.

prospects

of

Members: Principal Stock Exchanges of Canada
The

National

23

Association

of Security

Dealers

Broadway, New York 4, N. Y.

31

Volume

189

Number

5856

.

.

.

The Commercial and Financial Chronicle

(2737)
exists

in

the

form

of

Soviets' observe,
although it is extremely
competitive politico-trade maneu-i difficult to estimate how much
vers, in the form of dumping and further expansion can go, it must
excessively easy'; and i long-term be taken for granted that the ficredit accommodations.1 But this nance
companies will need greater
does
not
warrant
the
alarming financial resources with the passtatements that are in circulation sage of time.

By A. WILFRED MAY

regarding comparative
majority of the population

morec1o\x*^^0nivnn
vve recognize it
xiiortf cio

pletely

phony

issue.

money spend-

The

.

soft-

~

holier-than-

thou
are

attitude,

•,v;,r.

t-

-

,

—

•

—

•

t*

Pnhrif.»nnt

j

engaged in

creating

sumer credit's present position in

•

r

con-

The-fNatiOnal' Bureau.!of Eco- the national economy is drastically
.On ''the%ther hand while itiia^K^hdc-r.-Research is completing a' different from what it was in
tion ,is not; a prerequisite- for major study of comparative eco- prewar as well as early postwar
growth, it'cannot be assumed that"nomic growth in the U. S. and years.
Of course, there was a
economic growth- isprevented by.' '.the* Soviet Union, which was dis-:. drastic
decline in consumer fiinflation-.' The .record clearly shows' .Passed-the other day by Solomon nancing in wartime, hitting loans
.

ing boys, with
a

The study points out that

mestic output*

stimulating ef'f;t£

fect will .be -dissipated..

as a com-

'

Changes in Credit Use

both quality and quantity in do-

ages to get on the available inflation escalators, its

to

as

thp>

-

"Riir^aii'c

n!rw»fni*'

for

durahlp

consumer

nnrehncec

the

s

-

i

Superficial conclusions
bcinff voiced

recardinff

%

arc

the

^ihahhoury the Soviet "draft"

also

effect

sound

that is, that it is pricing us
.out of the-market, It is true that

budget
balancers in
their desire
money

for

a

ness,

.our.

export'surplus

clining

growing
Wilfred

A

econon y—

May

has been

drastically.

But

de-

there

.

econ-

Soviet's 8a|"s in lndu!*™al 0"lPut

have been the result 01 the diverswa ,°l manpower to .industry;
homely, through, the shift ol. manPb^er into this sectoi, to the longterny detriment of the other ecosectoi s,

>

tries

Actu-

are -as

ally, the issue of the desirability
of expansion
is, and should be

^

mlth-

merely from the alternattve

Materials pjddes^-— which are to

od$ of achieving it

ling-ites

want

government

A

wnicn

consumers

;'

aud inhthc

extent to which they have been
8«»>« wto debt
From 1950 to 1956 the propor—
tion of consumer credit devoted to

automobile

A NEW ERA

dent

the Anderson-ites

while

certain 4;hat

are

sound and.

personal

loans

rose

from 13% to 17%, On the other
hand, during that interval there
were declines in the proportions

of total outstandings devoted to
single payment loans, and to durable consumer goods other than

aUi? rS"
This

little

volume

is

government.; The

vertising
agency, it has
been
an¬
nounced

by

Howard

W.

Calkins,

Others Jjjt

■

latter

are

r;T

,

will presumably be shortly!^®re<f*
business recoywuree

the-end of World War II they

con-

long

identi¬

fied with the
d

a

ertising

v

field,

jouvuhj reactions «> mis American

way of life, ranging from ehthusicstic approval as the mainspring
0£

economy

wc

about

the

Jfimria"

8n„v^

yS

v

business

surpluses have consistently shown

That Inflation Element'
is

the

increasing. in-.v.abow.-.ciied..reasons; and will••

TAIN

THEIR

:<«m'::

•

*

*

T

In reporting the recent great

Indus-

FUNDS"

r?n^i a

Pr^r^0uisite

by John

findidgs%Fthe^

iro^

elusion of inflation in the
growth- doubt so continue—all without
re-^^^'nerts'hre 'contained in
discussion confused and
confusing.' gard to • our - domestic inflation

an

ex-

84-page

growth

in

a
Vice-President of Bryan
Houston, Inc. for two years and
prior to that had served as Vice-

President
and

and

television

Director
for

Legler, Inc. for 18

of

radio

Warwick

&

He also
served
as
career
officer, U. S.
Foreign Service for eight years.
years.

Dorsey & Co. Formed
In New Orleans
ORLEANS, La. —Dorsey
& Company,
Incorporated, Rich¬
ards Building, has been formed
to

in the securities busi¬

engage

ness as

to T. J. Feible-

successors

&

President.

American shareowner-

.

Asiel & Co.

A

quiet

economic revolution that

Seventh

of the Graduate

School

of

questions- eliciting

well turn outT-beneficial V Few P ,p.fr Tf.ahze to what. a
foreign trade.
Walter huge extent the finance companies
Hallsteirf,: President-of the Com- have..used funds in recent.years.
mission of the European Economic rmri-hnancial
corporations,
in-

our

postwar .4%

rate of expansion has been

panied by inflation
the

much

as

accom-

manifested

advertised

Community' (Common

Admit New Partner

who

wage-

occurred in spite
of the
inflation (as demonstrated
by the

of

the steel

been

able

ing of present tariffs, by negotiation in accordance with the
industry). We GATT rules,

to

survive

seemingly

something

temporary.

of Columbia University

■

new

Once

■%

«■>-■■■

July 1 Aisel & Co., 20 Broad
St.i New York City, members of
the New York Stock Exchange,
will admit Joshua Kohn to part¬
nership. Mr. Kohn will become a
member

n"

-

|

U

| JU.it

y

I

Aulllll

Ui

willistnn

.

and

'

Ufolnh
Hi W8ICR
^

"Rpnn^

Admit Two Partners

lis

managers ot
•
•
>
Penf51.°^ funds, as well as com- Broadway, New Yoik City, memmerc].al
.\}V GL +^rGp
e7 ^ers of the New York Stock Exguently on both side of the fence) ciiange on juiy j wjn admit John
have vastly enlarged their holdf
ings of the obligations of the fi- H. Welch, member of the Exnance companies. As the authors change, to pa t ers lp.

CHICAGO,
Howard

Schourek

will

Western

Natural

Republic

Gas

Natural

of

the

Stock

New

foundries

Southwest

Natural

Gas

Production

Corp.

WERTHEIM & CO
Members New York Stock Exchange




negotiations leading to the above transaction.

Hornblower
BOSTON

YORK

lathe works

undersigned furnished financial advice and assistance

in the

Unlisted Trading Department

NEW

bend

Co.
The

Northwest

acquired the assets and business of

south

Co.

i

i.i

t

I

'

NEW YORK

PORTLAND

BANGOR

CHICAGO
PEORIA

DETROIT

CLEVELAND

ROCKFORD

Weeks

&

PHILADELPHIA

CHARLOTTE

be

WORCESTER

York

Exchanges.

Co.

Gas

and

July

Robert

admitted

1
A.

to

partnership in McCormick & Co.,
South La Salle St., members

Hugoton Production Co.
has

On

—

231

is, of course, true that a
the growing threat to our export trade

steel

111.

Gross

R.

It

american

Stock

McCormick & Co. Io

BCflllC

||

The Russian Threat

-

York

New

m

.

J. R. WllllSlOH. BftMlft

„

the

of

Exchange.

the

spiraling inflation chiefly because''
been-

•"

On

surance companies,

Market),

is visiting this country, is
price spiral. But far from assuming strongly of this opinion. He insists'
cause and effect between the
two that it will be practicable for us
elements, the fact is that expan- to effectuate the Market's lowerhas

neSq

ne!f

to.U.fs.

.

It is triie that

theTervent'hope*'that'our

prompt

country is not being thus "quietly
'

fuzzy Tt may

thinking.

beach-front

or

Busi-

While the impact coming from
the Common Market is uncertain,

much

Avenue

bXet pub®d under^'the aejs reshaped."

for thetor.

growth.' Or does inflation prevent
growth?
These are two popular

has

new

Huhn

that

Likewise

it

Mr.

Company.
George Dorsey will be Presi¬
dent, and T. J. Feibleman, Vice-

of

course

Previously

was

query

have

on

development in his

position.

man

ITEM OF THE WEEK

ruptcy*has left'a void in the form
information

htir wnnnrnv's

its damnation

to

aS the harbinger of national bank-!
0f

with

XvvinS Xnt

oonrornod

aro

stUl

a

sion

Tevis Huhn

will

concentrate

NEW

£

in

of

President. >
Mr. Huhn,

planning
stopped half-way; thah

■

131

ad-

replete

~

lasting growth can only >.ory(4) Much, of the. decline m
be. attained by
leaving spending °hr .expprts^bas been _^Iue^to
and; investing
decisions to
the "''structural'''changes m the output.
private individual and not the
our customersr that, is, since

.

headquarters,

the

of

national

: v with a veritable.wealth of infor-

'

'

paper grew from 28%
while
the
proportion

to

spending-and-taxing-

and-plannmg-and-spending;

vinced

tor

agriculture, to 35%;
going into

as

inflation-geared as Moreover, independent studies of
arc we- (our.own price manifests°v,!f industrial output are at
tions. of'inflation have lately been ^?.£r variance with the Kremlin s ;
recognized as, entirely spurious, extremely spotty).
(2) Imports ?f*lcial figures, even the highest
The contentions of both
groups
from us have been importantly independently calculated mdex
the free spenders and the
a'nti- cut through the impairment of the heing far below the Rlissi&h clanifs.
inflationists, are premised on the purchasing .power of some coun^V'.,a. i}/^
"• ♦ c,r,
underlying aim of growth —'the fries (as in Latin Amerifca) aris- '•triMiA
a jwirc
im
schism between them ari^ine ing from;; declines in their raw '£■INAnfCE, COMPANIES IN
full employment.

purposes

°my has not been able to do bet,
torn 1M1 to 1#5«. dnce
ter .tban our free enterprise sys- then important changes have taken
tend;5 He points
out that the place in the purposes for which

. f jve
major factors that
should lirqit .our expectations of
the worst.
(1) Most other coun-* ,*^

are

that they have
sion and

York

Cedar Street, and has been elected
a
Vice-Presi¬

.

Inflation, and Exports

-

royal-

t"

Agency

Huhn has joined Albert
Frank-Guenther Law, Inc. in its

the Board and

that they are
being opposed
by' the "eco¬
i

Albert Frank
Tevis

Chairman

im p ression

nomic

Huhn Elected V.-P. of

New

Soviet-

American accomplishments,

man-

5

PROVIDENCE
MEMPHIS

and

Midwest

§

The Commercial and

(2738)

Financial Chronicle

.

..

Thursday, June 18, 1959

is: the first, though very cautious policies.' Through their harrowing
step,(towards a federal system of/-experiences; they have'become
government in Western Europe.
convinced that economic and poliWith
these
new
institutions tical unification is the* only hope
nomic
side
of the structure of emerge new responsibilities which for Europe in the future.
European
integration.
I - won't' are European rather than national
ho Rnmo .iih
inctnnpp
dwell on the details of the Rome^ih scope. "Fr»r instance, ' thprf IS' a * Sees Favorable French Response
For
there is fl
Treaty—there are some 248 Highly'social fund to help labor adjust
Another favorable omen is the

Treaty of
the European
Economic Community.
i
; *
Let's turn briefly to the ecomeaning
1957

The
Business

of

which

the Rome

set

up

cr>nno

By DAVID ROCKEFELLER *

I
I

Vice Chairman, Board of Directors,

[

The Chase Manhattan Bank, New York City

technical articles for

and analyzing the European Common Market,
its growth. He finds

After describing

Mr. Rockfeller finds most encouraging

Europe is well

Just

eleven

years

Vin ,ye?rf a^°'

-

the

first

cold

major challenge of the
As in today's crisis, the

war.

problem

cen¬

tered

Ber¬

on

the'

in

roots

>

a

r

Win
sighted statesmen, such as Winston Churchill,,Jean Monnet and
Robert
Schuman, .were Jalking
about a United States oi Europe,

350040 and get the

^

c,uotas

were

20%,

bv

enlarged

alld made equal to at least 3%

.

country's

cach

market

of
each

for

Provisions

'

.

First

Tod%.y°u can (^ you wish) ask

lin and had its

\

...

overseas territories of the mem-, product.
Before these initial
>ber states. Within the context..of,,,moves: had been made, it was ;v
our .own nation, we would call, widely feared that, France, for. (
area
free of all trade barriers)-^/these three steps unemployment example, would use the "escape?
between the six member'., coiin—!insurance,^.federal aid, to states^ ciauses jn the Rome Treaty. In*
tries: Germany, France,,Italy and ,aPd foreign aid respectively. They* stead, the French —-' thanks to
the three Benelux nations, Bel-.-.al>e
addressed to newly created President deGaulle — drastically -■ <
gium, Luxembour g.t'and the.
heeds and responsibili- overhauled their" economy," put
Netherlands. These six countries
which / follow automatically through a much-needed devalua- %
have agreed to do away with all from ; the establishment .; ofthe Ron 0| the franc and/were able ".;
tariffs, import quotas and other Common Market.
*
meet - their Common Market■
impediments
to
trade
among
The three broad aspects ofthe obligations in full. The reforms ;
working,
themselves.
At ;the same tinrie, .Commori*4 Market; which^T have am working. the franc, is strong,'
these countries will have a com- outlined; should sound familiar to : an(j France—instead of being the
mon external tariff and trading anyr American.
For , they are.'vveak sister of the Common Marpolicy towards the rest of the what we'already have, and tend j^et—now shows signs of becoming .•?*
wofld. Both these adjustments are* to take for granted,:in the United dpe of its strongest members.; I
;

*ew,/ar~

y ?

first

of

all, the Common Mar-

ket sets up a customs union—(an

r

i

this

ago

the

of

success-

,

productivity, know-how and man production, and to take
lead in reducing trade barriers.

month the Free World confronted

•

:

still great lead

our

conditions,; immediate

market

provisions.^underdeveloped areas within the
•»■:W V-• six-nation: "community.. There, is
Describes ECM Principal .tWa development fund for use in the

%-■

on

cutting costs to remain competitive to keep
in

to; changing

of the Common Market

her way to becoming a major economic
force comparable to U. S. A. and U. S. S. R. Noting we have
much to gain and very little to lose, providing our trade with
ECM expands, the banker states the right answer to the
Common Market's challenge is to buckle down to the job of
that

the lawyers

about. I merely wish vtb&resulting from the elimination of tariff and quota cuts put. into efpoint out what I take to be,three/tariff barriers. There is an invest-v fect in early 1959. In January,
important common denominators .merit bank to provide capital for tariffs were cut by 10%, while

to argue

-

Ur?

,°l

European Eco-

unsettled

question
of
Germany's fut

u r e

The

.

challe ng e
amounted to a

unity

the

as

Common

SSn/whaUvouldTappen® o'^

Market,

of

purpose of
West.
o

w

confront

other

questions which I should like to

discuss.

the

ajj services

First,
w*

e*
David Rockefeller

-an¬

what

is

the

European

Secondly, will it work and what

*RortC

tho

or.n

c.™,,.

In most essentials the
challenge of.1948 is being laid
down again. But the situation of
the West has altered dramatically

question.

are some of the

eco-

^ rights of separate states' qn fact, in all the Common Market
3^11^:1.1;0 largei?
?^tt.he>'eduntries-^isdhat^'.Mbod
cp'nmumity, as a^^yhole.,; jfim]t^~;kmomentum has built up behind

There are

of integration...Businessmen no longer debate the pros

problems?

^ce

labor and invest- '

menf capital

will eventually cir-*

culate freely'

Common Market?

crisis

The social and

nomic
are

policies of the
to be harmonized.

Lastly, what does this new
munity mean to the United States ton policies, common Soals of
--both economically and politi- full employment and growth, and
rally?
a common pooling of efforts,in.the

tc^5'

,

The reallv sis-

,•

i^ospec!^

Common Market would not have free and fair competition. - The opera^on,
given up any part of their national treaty sets up a fair trade coder^Jj^^
political sovereignty unless they It outlaws governmental subsidies
had been convinced that, in so do- now pre^

take
at
least
a
generation for
Eurone to get back on her feet,
Europe to get back on her feet,
and
she would never play the
dominant role she had in the past
—or, at least, so the predictions

higher

.

r
.
.
A Coming M .
Major Economic Force

Today, thanks to

no

small

meas-

to Marshall Plan aid, but due

«re

importantly

also

to

European

energy, resourcefulness and
of

the

traditional

some

sovereignty

of

The six nations in the

ir}g, they would bring about
level

of

prosperity

a
by

Treaty

countries.
legal.

great

puts

•

Investors,

Po^ibiht^

new,

-

nlSv fhr'Tt"''":'munists^vvhicha1' ,
fu *
^ broad, .suppo t fo ^

emphasisnot

A^^e^ite t fi s j
+h;c

n„+

wiii

+h*

5f

.......

.

.-1 itninK _xne ans^y

It abolishes discriminatory '

tion

l/iVUA

vv

iilOtltU tlvilij

KJ JL

.

.

set up to enforce the treaty and they

are truly enforced, these
that, so far as possible supra*- measures can be very important,
national European interests pre- They would mean, for example,"
vail over strictly national inter- that the Italians would no .longer
ests.
.
be able to subsidize their ship- *
see

The

"

""

"

"

~

since/.World War II. AThe

1iir_rlrox

Co

on
t

w^

'

eAOn

*f Vl

r
19 1 R
12-15

C*

^so

c]

timetable s

.

to be

in Europe today seems

-

**v

d

"1^

-

concrete move came in 1947 witn ened. It now seems P
i
OEEC -— the Organization , for " acitually wi 1
.
European Economic Cooperation.
Ihe sigmiica t po r
■
This group administered Marshall Co^m.on,X^eLc/eaJ^
+u~ naih intpr tnnir n lpaH in halanre worK in vmcn tne iiaiiuai i.uj.cco
^

Market

could

Individual nations, Europe is well
On her way to
becoming a major
economic force in the world

com-

parable to the United States
the

Soviet

Union.

and

Whereas

ten

ago
European
currencies
critically weak, today they
strong, backed by rising gold

years
were
are

and

reserves

only

a

short distance

from full

convertibility. Economic
austerity has given way to vigorous

old

economic

growth.

Even

qy

tnis

union

fcted

dual

as

an

matte? and^economic

would

be

compewuon wouia Decome-a uiucii

Political

annroach

not feasible

was

'impractical

union

without

political arrangements to bind it
together
The
of
the

succeed,
fully
0thetnCo^°"nMa^^^^^^^

Trlmers
decided to -start
^n^c^idrWWFlSB

Common Market
from

the

slogan—"When the American

the

understanding

that

the

n/.nnnmiz. umwtVi

w«*o ucuwuA-r-w«,-jv4"»

potent force in insuring customs union between Belgium, penence ofrap
t
economic efficiency than it is at,.Luxembourg and the Netherlands, m Westerm Euiopc
present. The ultimate success of These,, countries are now in the
cam mon dVflhrket
the Common Market, in promot- Common Market, but they had ni/;-w!hi<:h t. eucceed
ing economic, advance, may well-showed in the early postwar years cpuld w n Ssupport a
turn on the ability of the cooper- that , three highly developed, but A? it becomes more
operaating nations to secure acceptance different /.economies t could
be
of the rules of free and fair com-, merged successfully. By far the
, .
fapfnr
;n
ennnorting
Petition to which they have com: best example, however, has been ..powerful
in
mitted. themselves
•, the, .-European
Coal and Steel
the

more

iso-

coonera-

necessarl to reach economic
objective!w^MpSuceSSS

tion

supp^mg

factpj

b/treaty.

rn?(?"mT*rineefen fPpP6 c^tches results which were regarded as
How is the system of economic..-'Set Vff
.theiqsr°"t'readjustments which are generally
darmg ultimately of great importance, fair play to be enforced? This called i-.SchuraanTj^n m.g, associated with growth and
Thus, the Common Market is es- brings me to the third interesting-.^a?L.ln e**ec*»'.a. P^oLpro.i,
: .
.
.
.

p°G
the past two American recessions.
•An

the

address

Graduate

by Mr. Rockfeller before

School

of

Business

of

the

aniosTty of Chicago'Chicaso'I1L'June
:

'

sentially
«rith
mu•

Thls>

an

economic

aspect of the

movement

i

..

implications.

countries.:and steel ; among rthe. same six
number :of :-key : rPeP?^frs as
more comprehen-

seems to me, is the real

have delegated a
Hpoisinns
and
decisions
and rpsnnnsihilitip«3' to ;Sivev common Market.responsibilities f to si ve'Common marKei.certain newly created
1

iristitutibnS^/PP3^111^'
For example,^cessful. ' ;

CORPORATE BONDS
LOCAL STOCKS

tional interests of the six member ^defeated

-

:

Robinson-Humphrey Company,Inc.

; RHODES-HAVERTY BLDG.
WALNUT 0316




ATLANTA
LONG

1, GEORGIA

DISTANCE 421

.

Generally
ueneiaiiy

been highly sue""

'
.

p

,

Possible Problems
that the

All this doesn't mean

£

_

—

Over

Rlere

certainly
ce^

^rugt

-

provisions

not

does

Market

...
the

i

,f
long

face
vliri

run,

friction
of the community..
;
,
.
between the governments and the
there
is
the
Common; Market*;' Moreover, in
considering the new institutions of the community
Commission, which will speak and" background of the Common Mar-ust ag we sRR have our "states
act for the European communityv ket; it's important to remember
riibts" difficulties from time to
as
a
whole.
There is a Council- that,,: historically, the "six"' are, t.^e
certainly there
will be
of Ministers representing the na-) as1-one European noted, a club of
~prob'iems jn enforcing the anti-

1894^

STATE AND MUNICIPAL BONDS

The

.Under'the-,crefte<J a common maiKci in coai

Rome Treaty, the six

■

[ESTABLISHED

'

Common_Market—market i^coal

its political structure.

brnnri

nations.

.

Benelux

and

governments. There is a General-France were" quickly defeated in
Assembly drawn froth"%therpar- 1940, Germany and Italy in 1945:
liaments
of i each
country.
And. .This.common experience in defeat ,
there is a Court of Justices -f- a h£lps. explain why these countries
sort of a Supreme
Court which,.have been willing (after centuries
will be final arbiter of the. Rome .of unwillingess) to give up their
.

.

compllcateflr? ^eaty,rvmere is mo political party,.in^.e

leaning the benefits of freer trade
several reasons.
reaping the benefits of freer trade, t.ransnort rates/ And it ealls for j
transport rates. And it calls for
,,s
Conversely, the Common Market measures to deal •witfiv?icarteVr>f One treason is the success off|'P°t whether tne
probably wouldn't work without agreements that fix prices,*'limit*'earlier ^experiments in economic is going to wo
|J1UUUUI/1W11 and v*X V 1UU
U.J/ markets
J
••
the new political institutions of production CI 11^1 divide up 4 C4X ixV- lu * cooperation, of which there ha.ve J^dy be^un^to
the community which have been among a few big companies.
If been several on the Continent much and how

above

all, her willingness to waive

sees *he Cmnmon

are, the

worn-out
civilization. ..Her
economy
had
been wrecked by two wars. She
was
beset by outmoded national
divisions and animosities. It' would

ran.

-j
^

off

old,

;

"I
lltlSJh. W ?

1

wj„ ,

in hand.

an

^

.

'

around the world who had written
as

n(,:° S

.«?"!??,-^y •

,:v,.
development of
nificant
change
is
in
Western
The Rome Treaty
- In .short, theCommon Markqt is
^ What
political and economic
To begin with, it must be noted £hi attempt; to set up ,shop
.success
gesture.
that the Common Market haifcotlph^Hi along the lines .bf 4hq ,50
A decade ago there were many, political and economic aspects, federated states in our QWn?n£tiop^
peo^iv. in tnc united States .and These-two sets of goals go hand
Moreover, the Common
In the meantime

Europe

-

tod^;Ih^inS|l1JhJee5bSic

and.

firmness

N

known

of the

test

Treaty

will

We have

be

of
the
Rome
them, too. And

susppct the Europeans will find
R difficult to introduce freer trade
in acrricuiture.
But, I won't even
comipent on our own farm probj

lem
The point is that, although
Treaty and its application. Within ^sovereignty, set up new dnstitu-^ there arP many problems, there is
this framework, there is a balance.', tions, and turn their backs on a
nQ reason
think that, with good
between national and supra-nasystem of barter trade, economic
tional interests which, in effect, barriers and beggar-thy-neighbor •
Continued Ofl puye cc,

Volume 189

/Number

5856

.

.

The Commercial and Financial Chronicle

.

T

(2739)

Absolves

The Truth About Consumer Credit

/The

'

By WILLIAM J. CHEYNEY*
.

-

Defending

credit'

r

./•

j

recession

f

:
-

C lf the people were overburdened
by the indebtedness they incurred
in 1955, this would have .shown
the vehicle that made it possible, UP sin clearly decreasing purchashas been seized upon as th&Fposfr* ihgvin *the later period—and it
sible
cause
of
everything thatv did; not. show up.
v

j...;
,r/:■'
;";v
The preservation of Private En- upset
accepted economic theory of
terprise as a system has been our■the past, that consumer-*credit,
-

most

important

since
Ti. >.

objective ; ever

1900.v In that era,

vn{ll.'n

11-

thousands

_m

—millions be-

*

to realize

gan

sess

■

>T h

goods produc¬
tion

had

10

or

..

shelved

far

as

be-

,

plan.

-

■^wr^r^;^;^re;%pufolisHeci and clear.

-iV

years

so

There

no

was

overburden^of^Tebt resultanffrZ

.

-

.

the past decade—Automobiles and
fceavv

industries

the

as

durables

concerned.
—

are

------—— -

Prac*

electrical

mechanical

and

consumlh^Bqu^mlnt.
Absolute

Proof

This is the first time in which

absolute proof shows up in care¬
fully gathered statistics—thai the

***.&: credlt fey consumers has
been

a

casual factor in either

the upward or downward spiral
°f the business cycle.
.

.

.

tically all price increases, and we
Credit has proved to follow the
n+
riomanH
have cataloged them from the course of consumer demand,. 11s1

1

.i

.

f>niifeo

..

»

for several years)

the

in

industries
have
been
4~a~
1
t-—~
by new wage contracts all
along the line Which affect cost,
either directly or indirectly.
caused

Demand has had

kets

the instalment ^,fiT|ie figures of the government

.

,

The supply and demand theory
to
have been completely

effect what¬

these fields.

on

recession

seems

durables

Lately these two.theories baye .'.-The automobile market lost its
tgun to clash.
earlier,
jy;,
£ business not by ^mobility ois-'the
For the growth of the big state people to buy, but by their deciand . in t he
William'J. Cheyney
which
seemed
; first 20 years
easy
to swallow 'sion-not to buy—they spent their
of
the
Cen¬
since apparently it meant only money elsewhere.
;
tury bathtubs, carriages, factory- the rigid regulation and manageFurthermore, they continued to
made furniture, better bedding— ment of big business, industry and save at approximately the same
later
mechanical
refrigeration, banking — not the little. people r- ra|o as they had through 1954 to
gun

price increases levied
upon them in a period when demand was dropping.

press

,

>

swallow

great measure

of

era

Consumer

^

While consumers willingly spent
same percentage of their income as in earlier years, they can
not be blamed for refusing to

the

trends, the big government idea, :>no't merely shift its purchases out
there has developed rthis .almost of;; automobiles and into services,
universally, accepted theory of ,the, savings and soft goods—which is
right of little people to accumu-, exactly what the consumer did in
late wealth in their own way—in 1957-1958.
;

b i g

product, big
ticket-

.

.

..

//. I

.

e

...

•

•

econoa^y^ the-;i; TJlie consumers cut back heavily
and tdips
did
of the;;busine^s in purchasing automobiles
J'J
cycle. ; ;v7:
:
7 - /,-;.
'/ 7 this;reflect overindebtedness as so
Strangely, ^ concurrently / with, many -economists have alleged?
.the growth of statism, socialistic
An - over indebted public does

t

a

.

j in the p^st.

turns

hands

made.
.

h

w

<their

..

plain. Con"
do with thkcs

recent

w

goes wrong with the

their power to
take and pos-

*

1

are

had nothing to

consumers through- 1
whole period, 1957 and

usage, Mr. Cheyney submits that /
provides absolute proof that consumer
;
credit was not a causal factor in either the upward or down- 1 '- slight one for a 4 V2 month .period
ward spiral of the business cycle. Moreover, he points out, ndr
—then
continued
their
upward
were consumers uver-indebted.
^spiral of purchasing to newer
Turning, to other matters, he
rf ;-lieights in every succeeding quarexecrates the .growth of the **big state" and recent cries'
urging
tef until today.
consumer credit
regulation; andfears administered wage-cost //;; /-This4 was no consumer en"price strait jacket'- provides the -setting wherein "consumer ^ .i':- gendered/ no consumer continued
demand can push ihe market only one way—up." ■-V
:///* recession;
consumer

recent

fiacts

the

The fact is that to do so would scarcely a breather right on to
Out the
have cost them 15 to 25% more the new highs of today but they
1958, continued buying without' for these units than they had continued in lines of purchasing
much; of any setback except a invested for the same equipment other than those bellwethers of

■

V

ex-

But
sumers

Strangely,

i

f

the

by speaking only
consumers failure to purchase
as many car Units in 1958 as they
did in 1955.
.

vsr from the demand:

National foundation for Consumer Credit, Washington, D. C.

;

;

.

Pi ice .increases

of

-the sudden withdrawal of the

Vice-President

Executive

Credit

1957 was a
capital goods recession reflecting

r

_

Consumer

recession

price

upon

no

When

apparently

consumers

withdrew $3.8

billion from the automobile
in

1958,

the

in

mar-

v 1 a

mg when the demand results in
purchases of heavy durables,
dropping when consumers turn

their

attention

to

smaller

ticket

items, services and non-durablea
—a
«

ever

onnonrYioi-

result rather than

This time the

clean

cut—and they

e consumer

a

cause.

causes were

were

clear,

not in

credit area of the

economy,

price

of new
model automobiles went up—not

down.

War Brooks Joins

When great industries finished
their expansion programs and the
backlog of the capital goods inWICHITA, Kan.—War O. Brooks
dustries dropped severely, prices
has become associated with The
either stayed steady, or went up—
Fourth National Bank as Vice-

Fourth National Bank

not down.

j

am

President in the investment divi-

afraid

we

are

in

a

price sion of their trust department. Mr.

jadro, television were considered suddenly looms up as ;a^stern^
strait jacket in which the costs, Brooks was formerly head
|he exclusive property of the ricli which; if. allowed,- ;tq/gr<iw^
jg.i not" 'chargeable with backed by powerful organized brooKs & Company, which
and well to do.
^
;
;;
:
will ^stifle the very rights of the the weakness of heavy debt when labor, can not come down; hence discontinued business.
Had. this
situation •; continued, Pe°Pie ^ claims as; its benefi- ije refuses to buy a new car in a period in which consumer de* ' "

of
has

.

,

_

Private Enterprise in this country would have gone the. way it

daries.
r

Drive

The

system of

consumer

degree

was

•

credit

respon¬

sible for maintaining the status
quo

tem,
the

here for it
more, than
smaller

by this sys¬
other, that
average homes

was

any

and

equipped with modern and

were

comfortable

ings.'

devices

I..-"S

V

furnish¬

and

Consumer

as

>

^

invented by private capitalism in
considerable

Reffulaie

to

has in many parts of the world.

"I',;1 V 1958—the

'

•

V-:

Credit

-

niflw

in

theSi

model and make

same

regulate the use 1 nf r consumer
of
credit by the people" is advanced,
and if such regulation should en¬

push the market only

can

the car he purchased in 1954— one way-up.
costing him $1,200 more.
,
Nothing but

The automobile industry has
cleverlyattempted to cover up its

"rpmdaicx

mand

the basic right of Ame'ricaris
acquire what they "consider
family wealth- will have -been
tampered with to the point where
the big state makes these people
not beneficiaries, but slaves.
i;"--

■

f

|

Mason Bl*OS. Adds

.
SACRAMENTO, Calif. — Emil
economic Schneider has been added to"the
debacle seems powerful enough to staff of Mason Brothers, 1000
upset this rigged market situation. Tenth St.
^ :

an

.

sue,
to

,

This annoimcefnent is neither
any

an

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

of these securities. The

New Issue

June 17, 1959

.

'•

Aided

Private

Enterprise

That

The discovery that major long
lasting durables vactually are
packages of services, and that a

could

man

purchase the package

and pay for the services more

less

as

-

he

them

extracted

—

discovery that this, in fact,

.

or

the

con-

stitutes

living within one's means
—satisfied the "pay as you go"
axiom; made possible not only the
growth of our great durables industries,; the hiring of more- and
imore skilled labor at higher and
7
higher wages, the furnishing of
This was

arid better homes.

more
f

only, in Tact, a secondary effect,

v

The
primary result was the
preservation of the Private/Enterprise system in this country.
*

the

But

fact

that

for

the

wealthy, the clipping of
.

coupons
and investment in securities cont i t

s

u

t

the

e s

accumulation

of

/ wealth, luckily became co-existent

with

the

theory
that the
ownership of a little, piece of
ground, the furnishing of a home,
the
placard
"Private
Property,
Keep Off,"—that these likewise
constitute wealth-

consumer

credit

broadens

the demand markets, exerts presr
.

.

of capital—beyond the needs of;

current year or era, is adYanced to prove ..that the people
should be restrained in their pur-

chasing in order to save the eeonomy from the turns of ^the >business cycle. -:
.•
vVui' : **

is

nation

what

Made the "Scape-.Goat"

growth of

overexpansioh' .of indilstry^.'transr
porlation and business, 1956-'57,
and hence, to have caused the re-

different.

..
;; /
^:
In 1954, '55 and '56,^ ecdnqptiists v
almost universally were warning
industry and the government -of • a
great bpom ahead in the ' 60's;

Price $ 9.25 per

".4.-,

Share

Copies of the Prospectus may be obtained in any State only from such of the several under¬
writers, including the undersigned, as may lawfully offer the securities in such State,

.

forecasting population

increases,

family formation growth, .shortages
of all lines of production,
shortages of labor.
/
s

White, Weld 8i Co.

J. A. Hogle 8C Co.

*

Harriman

,

Sneaking their theories into.the
Presidents'
An n u a 1
Economic'

Ripley&Co. Smith, Barney & Co.

Incorporated

Stone&Webster Securities Corporation

t

Hayden, Stone 8C Co.

Hallgarten 8c Co.

Hemphill, Noyes 8C Co.

"little capsule"

The expansion program was illin that practically all- big

companies in production and/dis¬
tribution and transportation ex¬
panded
simultaneously, causing
the' capital
goods industries to
break
at the seams,
causing a
shortage of labor, causing a build¬
ing up/of prices for
machine tools

fast and has

so

Shields 8C

E. F. Hutton 8C

Francis I. duPont 8C Co,

Bache 8C Co.

Company

The Ohio Company

Company

Shearson, Hammill & Co.

G. H. Walker 8C Co.

L. F. Rothschild 8C Co.
Walston 8C Co., Inc.

timed

ilies. has

so

St

:

cession of 1957-58.
.The truth of the matter is. faP

wealth in the hands of little fambeen

Common Stock

people

experiment and is still being per¬
fected, but its result upon our
ongoing capitalistic system has
been vivid, positive and' of value
to this nation beyond measure.

'The

.

(Par Value $1.00 per Share)

1955, the public is- charged
with excessive buying on credit,;
which is said to have caused the;'

that wealth in
the

;
.

/ In

Messages, and worming their/way
of . into the private counciling df .the
that nation consider it to be—the Directors
of
big
industry, the
growth and acceptance of these great plant expansion program of
1955-57 was brought abouV-'-based
co-mingling
theories
preserved
our system.
'
purely upon the needs of the
The
economy to satisfy the demand of
mechanics
of
consumer
credit has weathered 50 years of the early 60's.
*!.
a

1,400,000 Shares

,

sure on prices, forces industry to
extremes in expansion, investment;

and

construction7

equipment. •" /

Baker, Weeks & Co.

J. Barth & Co.

Blair 8C Co.
■

Lester, Ryons & Co.

Alex. Brown 8C Sons

Incorporated

McDonnell 8C Co.

Rotan, Mosle 8C Co.

Incorporated

Schwabacher & Co.

Stern, Frank, Meyer 8C Fox

Stroud 8C
—•

Then

..

*An

the

address

New

York

Association;

by

Mr.

State

New

Cheyney. before

Consumer

York

City,




Finance

in-1957, a large percentage
of this ' expansion progfarh '.was
suddenly completed.

Company

Incorporated

d

\

8

FincmciaLChronicle

The Commercial and

(2740)

.
« *
!
^
^
Corp.—Memorandum—H. .Hentz; & Co.* 72
Wall Street, New York 5, N. Y. Also available'is a memo- >
randum on Chicago, Milwaukee, St. Paul & Pacific.
Bestwail Gypsum—Data—Shearson, HammiU & Co., 14 Wall
Street, New York 4, N. Y. .Also available are data on Elec- : ?•;
trie Auto Lite, Martin Company, Cooper Bessemer, Eagle

report on G. D. Searle and Company.

7

Bentnx

Dealer-Broker Investment
Recommendations & Literature

Aviation

Picher and Pullman,

Canadian

L
Bornliam View

Monthly Investment letter

—

—

&

Burnham and

Company, 15 Broad Street, New York 5, N. Y.

>

by Canadian insurance companies—Cochran,

Casualty

and

Stocks—Study

Company

Insurance

Ont.,

—

Study of changes in postwar years—
Investors Beacon"—Nomura

of "Nomura's

issue

current

Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
available is a review of the outlook for Plant and Equipment

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

Expenditures

Japan

for

New York.

Data in June "Business Comment" —
Commercial Banking Department,
Streets, Chicago 90, 111. Also in the
discussions of the general business picture,

Meat Packing Industry

—

Northern Trust Company,
La

Salle and

same

issue

Monroe

are

System;

Nova Scotia,

A

Problem

of Timing—Review—Bank

of

Toronto, Canada.

New England Business Conditions
Bank of

—

Review

—

First National

Boston, Boston, Mass.

showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used, in the National Quotation Bureau Averages, both as to
yield and market performance over a 20-year period—
National Quotation Bureau, Inc., 46 Front Street, New York
4, N.Y.
v ^
—

,

Street, New York 4, N. Y.
— Memorandum

"-7 •*

i

-

,

•

June 26, 1959 (Detroit, Mich.)
Bond
Club of Detroit annual
N. Y.
• *
McKinnon, 2 Broad->- "7. summer outing at fhe Essex
way, New York 4, N. Y. -Also available is a report on r} - v
Country Club, Essex, Ont., Can.
Consolidation Coal Co. ^
"
r
;
June 26, 1959 (Columbus, Ohio)
Ilelene Curtis Industries, Inc."— Bulletin — Weil & Co.," 734
Columbus Stock & Bond Club
Fifteenth Street, N. W., Washington 5, D. C.
*;
1
outing at the Columbus CounInsurance Corporation of America — Bulletin — Francis X.~2
| try Club.
Martinez, 1500 Walnut Street Building, Philadelphia 2, Pa.
Iowa Illinois Gas & Electric Co.—Memorandum—J. A. Hogle
{ June 26, 1959 (New York, N. Y.)
•& Co., 40 Wall Street, New York 5, N.-Y.
Municipal Bond Women's Club
Livingston Oil Co.—Report—First Investment Savings Corp.,'- *
annual outing at Seawane Har¬
bor Club, Hewlett, N. Y.
: :' 7
;
404 North 21st Street, Birmingham 3, Ala.77 Lynch Carrier Systems Inc.—Analysis—P. W. Brooks & Co." 7
June 26, 1959 (New York, N.
Incorporated, 115 Broadway,'New York 6, N. Y.
'New York Society of Security
National Union Life Insurance Co.—Study—Searight, Ahalt'& Analysts, Inc. annual outing at
O'Connor, Inc., 115 Broadway, New York 6, N. Y.
Westchester Country Club, Rye,
New Idria Mining and Chemical Company—Bulletin—De Witt
•
N. Y."
v'7
Conklin Organization, 100 Broadway, New York 5, N. Y. ' "
■
Norfolk & Western Railway—Data—Montgomery, Scott & Co.,
June 26, 1959 (Philadelphia, Pa.)
120 Broadway, New York *5, N. Y. Also in the same circular
Investment Association of Philare data on Raytheon Manufacturing Company and Wheeling
r
adelphia Spring Outing at
Whitford Country Club, Whit(M:- Steel Corp.
^7.
-777:7.7
v\7>7'7
Puerto Rico Aqueduct and Sewer Authority — Annual report
;V*. ford, Pa.
1958—Puerto Rico Aqueduct and Sewer Authority, San Juan, "
7 June 27, 1959 (Chicago, 111.)
Puerto Rico.
7-7'7-•>
77'"-7*; • • -7V77777;777V;\^'
•f
Chicago Traders Association
Quaker City Life Insurance Co. — Analysis — Hill Richards & :
s summer
outing at the WoodCo., 621 South Spring Street, Los Angeles 34, Calif." !/77777
ridge .Country Club.
Reinsurance
Investment Corporation—Report—First
Invest- ;;
ment Savings Corporation, Box 688^'Birmingham, Ala.
Aug. 9-21, 1959 (Charlottesville,
A
"J
St. Regis Paper Co.—Report—Harris, Upham. & Co., 120 Broad- *
Va.)
School of Consumer Banking,
way, New York J, N. Y. ^ Also
available are reports on
Underwood Corp., Allegheny Lndlum Steel Corp., Amcri- ''
University of Virginia.
can Viscose
Corp., National Cash Register Co., Martin Co.
Aug. 14-15, 1959 (Detroit, Mich.)
and Draper C orporation.
' %
"
Basis Club summer outing at St.
Sonoma Quicksilver Mines, Inc.—Study—Lon Hughes Organ¬
Clair Inn and Country Club, St.
ization, 256 Sutter Street, San Francisco 8, Calif. 7" .
»Clair, Mich.
Southern Nevada Power Company—Analysis—G. A. Saxton &
Aug. 19-20, 1959 (Des Moines,
Co., Inc., 52 Wall Street, New York 5, N. Y.
Southland Racing Corp. — Memorandum — General Investing
Iowa)
Iowa Investment Bankers Field
Corporation, 55 Broadway, New York 6, N. Y.
Standard Railway Equipment — Analysis— Reynolds &"Co., '
Day at the Waionda Country
club.
120 Broadway, New York 5, N. Y. Also available are analyses"
General Gas Corp.

—

Eisele & King, Libaire,

Stout & Co., 50 Broadway, New York 4,
Gimbel Brothers Inc.—Report—Thomson &

*

.

-

Y.):

-

Over-the-Counter Index—Folder

Pacific Northwest Industries

<

'

"50 Broadway, New York 4, N. Y.
Celancse Corporation of America -—

'•

and of Residential Building.

Monetary

White Bear

.

York 5,

In

Bond Club 38th
picnic and outing at
Yacht Club, White
•Bear Lake, Minn, (preceded by
a cocktail party June 17 at the
Nicollet Hotel, Minneapolis).
annual

,

of 44

companies—First Boston Corporation, 15 Broad Street, New
N. Y.
Japanese Stock Market

>

Cities

Twin

-

Ltd.—Analysis—Doherty Roadhouse
' .2",
America—Analysis—Pin cell & Co., V

of

iMinneapolis-St.

,

Inc.

Fire

June 18, 1959
•

.

"Eligible Book"—On preferred and common shares listed on
Toronto and Montreal Stock Exchanges considered eligible
Murray & Hay, Ltd., Dominion Bank Building, Toronto,
Canada.

Corporation

Investment Field

Paul, Minn.)

•

Street, New York 16, N. Y.

Companies,

In

Analysis — Sprayregen:& \'i June 19, 1959 (Bryn Mawr, Pa.)
Philadelphia Securities AssociaCo., 26 Broadway, New York 4, N. Y.
■
'j*%
Corn Products Company—Analysis—Hayden, Stone & Co., 25
v
tion annual outing at the OverBroad Street, New York 4, N7 Y. Also available are reports",
brook Golf Club, Radnor Townon
American Zinc, Greyhound Corporation, United Mer-*
v
ship.
chants and Manufacturers, Vecder-Root Inc. and Copperweld
June 19, 1959 (New York City)
Steel.
v-V;.
vInvestment Association of New
Curtiss Wright Corp*—Memorandum— Green, Ellis & Ahder-"
York annual outing at the Tuxson, 61 Broadway, New York 6, N. Y.
'
edo Club, Tuxedo Park, N. Y. ':
Dixilyn Drilling Corp.—Memorandum^—Hemphill, Noyes & Co.,
15 Broad Street, New York 5, N. Y.
June 19, 1959 (Pittsburgh, Pa.) Eaton Manufacturing—Review—Ira Haupt & Co.j 111 Broad¬
Bond Club of Pittsburgh an¬
nual.
way, New York 6, N. Y.
Spring
Outing • at
the
v;
'
'' ■ Yv'^C'
Evans Products—Data—du Pdnt,'IIomsey & Company, 31 Milk
*
Longue Vue Club.
•
'
Street, Boston 9, Mass: - Also in the same circular are data
* :
June 25-27, 1959 (Hyannia, Mass*)
on Ex-G'ell-O Corporation, and a discussion of the Dow Jones
Consumers Bankers Association
Industrial Average Earnings.
Atlantic States Sectional meetFord Motor
Company—Analysis—Gruntal & Co., 25 "Broad *"
: •
ing, Wianno Club.

Industry—Re-appraisal—Bache & Co., 36 Wall Street,
New York 5, N. Y.
Construction Activity—Review with particular reference to
American Marietta Company and the Arundel Corporation—
The Milwaukee Company, 207 East Michigan Street, Milwau¬
kee 2, Wis. Also available is a memorandum on Cuneo Press,

Chemical

for investment

-?;

Co., 335 Bay Street, Toronto 1, Ont.,- Canada.

Celanesc

Also avail¬

able in current Foreign Letter.

Oil

1959

EVEN TS
■

—

38th

Thursday, June 18,

COMING

Inc.

Company—Analysis in current issue of "Management
Audit"
American Institute of Management Incorporated,
12d East

.

-

Borden

it i* underttood that the firm* mentioned will he pleated
to tend interested parties the following literature#

.

Also available is a

Michigan Street, Milwaukee 2, Wis.

East

.

Annual review

—

Seattle-First

National Bank, Seattle, Wash.
Petroleum Situation — Review — Petroleum

Department,1 The
Chase Manhattan Bank, 18 Pine Street, New York 15, N. Y.

Pre-Engineered Buildings in Factory Applied Colors—Litera¬

...

-

.

*

.

,

■

Steel

ture—Stran

Corporation, Detroit 29, Mich.
•
j
Exchange—Summitry of all 1958 transactions
—Cromer Brokerage Company, Inc., 39 Exchange Place, Salt
Lake City 11, Utah.
Share Ownership in America; 1959—Study—New York Stock
Exchange, 11 Wall Street, New York 5, N. Y.
•*'•'•3:
Steels—Bulletin—A. M. Kidder & Co., Inc., 1 Wall Street, New
York 5, N. Y.
Also available is a circular on Insurance
Salt Lake Stock

Stocks.
Tax

'-•■.-/.v:/■

Exempts

70 Pine

vs. Taxable Yields—Review—Park, Ryan, Inc.,
Street, New York 5, N. Y.
; -v
.

'

T

.

.

,

Arden Farms Co.

Wall

—

Memorandum

Street, New York 5, N. Y.

randum

on

—•

Walston

& Co.,

Also available is

Inc., 74

a

Coca-Cola.

memo¬

.V'V-7

.■•■■■/.

.

.

'

Beatrice
York

Foods—Survey—Abraham & Co., 120 Broadway, New
N. Y. Also in the same circular are surveys of

5,

of

National

Distillers

Federal Paper Board Company and General American Trans¬

Oswego

portation Corp.

and

Corporation,

Chemical

Sealright

Sept. 17-18,1959

Metal Climax Inc.

Bell and Gossett

Company—Report—Milwaukee Company, 207

Corporation,

Falls

Union Oil Company of

Stores

Lerner

and

American
r

California—Report—Dean Witter & Co.,

Montgomery Street, San Francisco 6, Calif. Also available
is a report on Signal Oil & Gas Company.
United Engineering & Foundry Co.—Review—Peter P. McDer45

For

financial institutions

mott & Co., 42

Recent Neiv Issues:
7

Hermes Electronics Co.
^

Electronics Capital Corp.

_

Canada.

25

Ltd.,

Company
.

,

—

Adelaide

Analysis

Street,

.

—

^

-7-VV'

•

•

7•

Women 37th annual

Sept. 28-29, 1959
.Canada)
Association

Interested in the stocks

Poly Industries Inc.

SALT

The Kratter Corporation

We

of

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V Sold

offering, free

all

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LAKE

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on

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request

EXCHANGE?

traded,

a
ten-year high-low range of prices,
records, total outstanding shares, total sales
of each stock for the year, and last sale price. Also indicates operat¬
assessment

Iroster, Singer & Co.
Members New York Security Dealers Association

In

gas

interests.

the above
as
over-the-counter oil and uranium issues, and
reports of current developments as issued from time to time by
company officials. There's no obligation; just write;
addition,
stocks, as well

you

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CROMER BROKERAGE

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on request,

ing and non-operating companies and those with oil and
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(Toronto,

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the newly-published Summary
all Transactions of the Salt Lake Stock Exchange for 1958.
are

dividend and

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day, Friday,

Sept. 23-25, 1959 (Milwaukee,
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National Association of Bank

Draper Dobie and

West, Toronto, Ont.,
77v«' '• .-'7 7-;> "•

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Wheeling Steel Corporation—Analysis—Schweickart & Co., 29;

Broadway, New York 6, N. Y.

City Club; field
Kenwood Country

day at Queen
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Broadway, New York 4, N. Y.

United Keno Ilill Mines Ltd.

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Municipal Bond Dealers Group
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Life Insurance Stock

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Summary report
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SAVINGS CORP.
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Birmingham, Ala.
TWX BH 456

Volume

189

-Number 5656

.

The Commercial and Financial Chronicle

.

.

(2741)
tion

The Long-Term Textile Outlook

there

were

mill

States

products

was

in

been

declining,;

formerly

the

on

dependent

United

States

cotton

States

either
other

or

sharp shifts in the pat-' major

producers of textile mill
products. The loss of these export
markets

has

contributed

shipments i over-all reduction

of

Examination and diagnosis of textile industry leads to short-run

cloth

to

the

United

for

in

to

the

the demand

domestically-produced

textiles.

289%,

rose

while exports' Despite
rapid
modernization,
from this country declined 48%.
American textile producers can¬
The impact was much greater on not
compete—on a price basis—
the wool segment of the
industry. with lower cost mills abroad.
Here imports of fabrics made
pri¬
The
third
major
government
marily of wool rose 437 %j while
policy which contributed to the
exports of wool fabrics virtually'
textile decline in this
country was
disappeared—down 95 %.

of current cyclical

expansion continuing through
first half of 1960, and to projection of reversal in
long-run
downward trend and greater production stability. After setting

;

textile

United

tern of inter-national trade in textile mill products.
Between 1947
and 1957, for example,

By WILLIAM H. MIERNYK*
Professor of Economics and Director, Bureau of Business and
Economic Research, Northeastern University, Boston, Mass.

prognosis

of

the

basis

for

this

hopeful

Boston economist briefly
examines outlook for individual fabric groups; expects produc¬
tivity pace to reduce number employed; and foresees fewer
r

;

;

view,

that which maintained

The

but

-'

relatively larger firms which will lessen excess price competition, foster greater research and dampen the textile cycle.

-

I

The author attributes postwar decline to changing

preferences and broad technological changes in
c-;.>

-

which

sys-

-

He

February

as an

overdue forward step.

V.*
'■£ x~<:t
i
: \
One of the significant economic
-

>

.

-

r

..

*

phenomena of the past decade has
been

the

;long-term
decline
in
during a period of rapid

textiles

economic

creased

national

went

88%. Per¬

sonal

income

nut

p a y m e

s

increased

82%, and
sonal

H.

Miemyk

con-

-s.iiih.

72%.

William

per¬

sumption

expenditures

But

the

at

went
time

same

up

the

total sales of textile mill products
rose

net

only 44%, and there was a
drop in domestic textile pro¬

duction.

The

decline

tion

has

with

one

of

textile

produc¬

been

not

uniform, but
exception—fabrics made
.

..

...
„

of the

newer

non-cellidosic fibers

—it has been
cotton

tiveiy

production

moaesi

rela-

was

{z.u/c).

.out

in.

production of woolen and worsted
broad woven
over

this

there

was a

which

readily discernible. The
cutback in production of
so

industries

is

of" the

one

effects.

The

But

which

total

many

are

sup¬

impact

upon

economy

44%
synthetic^,

goods dropped

In

period.

decline of 26%

production of rayon

tne

in

where

there
in

crease

was

in¬

15-fold

a

production from 1947 to

1957.

The decline in total textile pro¬

-

duction

much

led:, to

the

of

scrapping

textile machinery.

For example, the number of cotton systern
spinning
spindles in place
declined II70, and there was
a
reduction.

looms.

tern

16/o

Ox

cotton

111

and

Woolen

sys-

worsted

looms declined by
was

an

*>0/e, and there
larger drop in the

even

number

of

woolen^ and worsted

.spindles.

V

^

,

,

One of the direct effects of the
of textile production

decline

25%

a

drop in

was

textile

total

em-

ployment. And in the broadwoven
segment of the industry there was
-a decline of 30%. Well over 300,textile

000

mill

workers

per-

manently lost their jobs during
the 10-year period of contraction
•in the

industry. Since this reductextile

tion

employment occurre.d during a period of genera
economic growth, it was often assumed that the displaced textil
workers f°und jobs m expandi g
.industries. To some exltemt:
e>
did. But a substantial piopoitioi
of

these

f
lost
of

at

least

the

external

policies.

Three

causes

govern¬

principal

^government policies have affected
industry.

These

(1) liberali¬
foreign trade policy,
stimulation of the growth of

zation of

(2)

textile

are:

our

industries

in

other

coun¬

tries through our foreign aid pro¬

and (3) the two-price cotton
system'which is a result of our
agricultural price support pro¬

gram,

gram.

countries

workers

have

remained

!uy- une™ployed «ri?
their textile jobs. This

were

particularly from
to a flood. This led

price for
increased

This

our

program

By the
in

the

.o?RU^f, ,VtPmnorSlv

the

had

of

end

cotton.

same

competitive

1957, conditions

American

become

textile

critical.

industry
During the

preceding decade at least 700 tex¬
tile

mills

had

been liquidated in
Thousands of unem¬

this country.

economic

theory—were unable to
employment.
Mill margins

find

rose

narrowing rapidly

and

revenues

as

costs

declined. Profits

fell, and the textile industry cut
back

on

was

also

capital investments. There

to remain viable.

HI

satisfied

ment

tions.

it

not

was

ievej

demand

retr0Spect

condi-

until

Qf

1947

postwar

satisfied.

was

a

wartime

under

And

was

Thus,

in

it

is
not
surprising
production and employment feu sharply during the
rece<&ion 0f 1947.49. The downtextile

war(j

trend

continued

out the

after

Tariffs and Trade nego¬

on

tiated in 1947.

government policies upon this in¬
dustry. Shortly afterward, Sena¬
tor Norris

Cotton, of New Hamp¬
shire, introduced a resolution (S.
Res. 287) calling for the estab¬
lishment of

a

Senate Subcommit¬

foreign «u program, we were enaid
—
couraging the expansion of textile

tee to conduct a full and complete
study of all factors affecting com¬
merce and production in the tex¬
tile industry of the United States.

production in countries which had

the

same

time, through our

iWC1BU
_

.

.

i.1-

^

/\tf

T1

I

serve

the

Subcommittee

held

announcement

this

The

year.

five

is not

and

sult

of

income

inelastic.

the

investigation?

discuss five

of

the

-

A Permanent

but

it

ra^e
a

has

increased

'•

—

Because of the*

complexity of the textile problem,"
and the impact of various
govern¬
ment policies upon this
industry,
the major recommendation of the '
Subcommittee

that

was

^an

rjse jn jncome>

consequence,

Spenf
their
ci0th.

consumers

declining

a

representatives

proportion

of
of

on
goods made
Many household items for-

of

Gf

cloth

—

such

as

napfcjns>

drapes, tablecloths and
similar items — are now
of paper or plastics. This
has cut sharply into the fabric
market.
In addition, changes in
clothing styles have affected the

0fiier
made

demand

for textile

The elimination

Subcommittee

mill products,

of vests in men's

yards
rayon

For

of

woolen,

worsted

tion.

within

But

on

the

May

Administra¬

18,

Eisenhower indicated
both

for

an

ad

hoc

There has been
decline

in

the

an

even

on

Interstate and For¬

eign Commerce had voted to

industrial

with Senator Pastore

Finance, Inc.

par

Debenture are exercisable at $1.75 per share on or prior to October 31, I960,
share thereafter and on or prior to October 31, 1962, $4 per share thereafter and
on or
prior to October 31, 1961. $5 per share thereafter and on or prior to October 31,
1968, and $7.50 per share thereafter and on or prior to May 1, 1971, after which they will
have no further validity.
\
to a

$2.50 per

paper

metajs have displaced many
types
Gf fabrics in industrial uses. Thus,
otber
conditions had re-

mained

unchanged,

plus accrued interest

textile

The

Prospectus may be obtained in any Slate in which this announcement is emulated from only
the undersignef and other dealers as may legally off er the securities in such Stale

such of

Paul C. Kimball & Co.

pro-

the-important factors contribu-

httle over the past decade. There

ting to the high level of localized

which

unemployment
*An

address

by

Mr.

has

per-

Miernyk

before

the South Carolina Textile Manufacturers
Sea

Island.

Ga„




May

29,

were other factors,

however, which

contributed to the decline in total

domestic textile production.
External

Causes.*

^ ^ ^

^

At

the

Same

consump_

A. <i. Edwards & Sons

llallowell, Sulzberger, jenks, Kirkland & Co.
While &

Company

Chairman.

on

,

duction •would have increased but
•

is

as

Continued

demand

Plastics,
products, and various light

con¬

tinue the Textile Subcommittee—

sharper

for tex^je mdi products.

support

committee, and the proposed ad¬
visory committee. Meanwhile, the
Committee

purchase ol 200 shares of Class A Common Stock,

Price 100%

President

his

inter-agency

value 50c per share, will be attached to each $1,000 Debenture and a warrant for 100 shares
will he attached to each $500 Debenture. Such Warrants when presented to the Company

and

ap¬

time it appeared that this

a

support

May 1, 1971 with nondctachablc warrants attached

A nondctachablc warrant for the

cloth.

be

recommendation would find little

7% Subordinated Debentures

attached

of

Subcommittee also recommended
that in each Session of Congress a
Textile

suits, for example, meant a sudden, sharp reduction in demand
amounting to thousands of linear

one

1

number

a

departments.
In addition,
an advisory committee will be
ap¬
pointed, made up of representor-

(A Maryland Corporation)

Due

perma¬

other

As

income

meriy

Dal toil

have

a

by a highy
ranking officer of the Department
of
Commerce, -■ and will include

$500,000

slower

a

will

Inter-Agency Tex-'

tile Committee

June 16,1939

increased,

at

I

major recom¬

as

made from textiles has

wealth

industry

mendations briefly:"

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

That

personal incomes in this
country have gone up, total spend¬
ing on apparel and other products

a

problems. What did: the
Subcommittee recommend as a re¬

NEW ISSUE

been

of

result of

a

its

an

The

Intemal Causes: In recent years
demand for textile products

is,

1958

volumes

as

this investigation contain
of information about the

the

has

of

hearings

in Washington and irv the
field.
Its report was issued on Feb. 4
of

the

This

through¬

During the latter half

Senator John O. Pastore, of Rhode

At

to

investigation.

Early in 1948, in a speech to the pointed in the Committee on In¬
Senate, former Senator Frederick terstate and Foreign Commerce.
G. Payne, of Maine, outlined the

sharp
increase in our shipments abroad,
Also, the civilian demand for textile mill products could not be

time there

the third member of the

as

Subcommittee

a

pointed out the effects of various

same

Cotton

and

nature of the textile problem, and

II, textile imports to
United
States
declined. At

the

lina, joined Senators Pastore and

drop in spending for tives of the textile
industry, labor
development activi¬ and the public, to provide liaison
ties though it was recognized that between
the industry and the
gov¬
such
expenditures are
badly ernment agencies represented on
needed if the textile industry is the
inter-agency committee. The
research

stemmed

the

Foreign

Commerce, to conduct &n inten¬
sive study of the textile
problem.
Senator Thurmond, of South Caro¬

nent
inter-agency committee be
textile workers — who established to
continuously review
should have been reabsorbed into the textile
situation. This Com¬
new jobs
according to traditional mittee is to be headed

the increase in imports. As woolen
imports reached new high levels
it was also necessary to invoke
the Geneva Reservation of the
import of woolen fabrics—under
the terms of the General Agree¬

War

a

ployed

products,

Japan, grew

the

related to an inflated base. During 19.6 which temporarily stemmed
World

was
appointed Chairman
Subcommittee of the Com¬
mittee on Interstate and

of

agri-. hearings published

disadvantage of American mills
and contributed, at least indirect¬
ly, to the rising tide of imports.

were

As the textile industries of other

to the negotiation of the so-called

and

ducing the newer synthetic fabrics

two-price

system for cotton. Under
cultural
price-support

economy., world

some decline was to be expected,
Comparisons with the 1947 are

substantial—is that pro¬

was

our

mill

causes.

acetate
recession, however. And it is the
fabrics. The only segment of the
causes
Gf this long-term decline
industry fer register growth—and which we should examine.
this

per

But
first it must be pointed out that

internal and external

general. The decline

in

textiles

machinery

de-

rebuilt, following
the end of World War II, they
found a ready market for their
products in the United States. At
II
the same time, restrictions on the
What are the major causes of entry
of textile imports were
the postwar decline in textiles? lessened as part of our long-term
These will be discussed under two commitment
to a more liberal
major headings which I will call trade policy. The trickle of textile

Gross

product

effects

is greater than the
figures relating to the textile in¬
dustry alone would suggest.

by

up

in

obvious

our

in¬

18%.

not

dwindle.

United

States

decline

other

pliers to the textile industry have
seen
their sales to textile mills

p

the

are

been

other

ex¬

1 e, the
population, of
am

the

have

more

1947— through

for

of

textile

growth.; From

1957,

<" There

the

the decline of the domestic textile

communities

sharp

■

...

.

S m ^ny

in

occurred

ment

■

,

,

a

the result of various

are

2

of

drop in

causes

led to

Some of these changes were prob¬
ably inevitable. But to some ex¬

tent

credits Senate Subcommittee's textile recommendations of last
:

internal
which

a

capita consumption result from American
buyers of domestically
changing consumer preferences! produced cotton were
required to
and broad technological
changes pay about 20% more than the

r

our economy,

governmental trade liberalization, two-price cotton
and fostering of increased foreign textile capacity.

tern

clink

consumer

and to

Island,

.

.

the

9

page

23

■

The Commercial and

10

Financial Chronicle

category, that is true. But your
industry can approach it and at
the same time perhaps return a
greater yield. If you are starting
with .'a jield to investors of 4%
margin will keep the aggregate's some paperboard
stocks, are
profit margin up and stable.
yielding today/ it will be just that
products, some introduced in the

margin tends to (
go
aovvnward
with
increasing
competition — and others intro-,
duced recently whose high profit
past whose profit

Expectations

The Investor's

From Industry
CULLOM DAVIS*

By SHELBY

Thursday, June 18, 1959

.

.

Mr. Davis

primarily looking

other items which
financial community wants from industrial leaders: (1) ade¬
quate and frequent reporting; (2) corporate good manners;
(3) willingness to tell the company's story before groups; (4)
broad gauge view of national and international problems,
a

and (5) proper

dividend policy.

or

more

the financial commu¬

the

other, yield or

growth. These

It's not Main Street in the
sense
because the financial

are

the masters you

gentlemen are

What is

nity?
old

community

the

largely

means

als"

today.

But

it's

not

you

growth were the inexo¬

Wall
Street, but

yield

Milk Street in

does rear its

Boston, Broad
Street in Phil¬

and

adelphia,

tween—neither

or

But
compromise
ugly head, of course,
vast body of securities

choices.

rable

the

it too,

mutual funds,
inherit some

attributes.

Nevertheless,

these

of

to

person

champions,

his

as

difficult

most

a

the

and

with

deal

as

The average inves¬

buy

the mutual funds can

great

a

stock on any new
offerings and -it certainly pays to
be nice, to them. Most ,of the mu¬
tual fund people happen to be fine
fellows, too!
>
: - <
%
'//•■'
deal " of

your

View

Long-Term

companies,.,are^ also

.^Insurance

but' they

large scale investors

typical example, of ably appeal to the largest body of

Have

Companies

Insurance

are

generally strictly long-term. There
is

trading ( in

little

very,

,

stocks

the;- insurance (companies.

among

There is no endeavor to "beat the

':///(../// investors-^for investors in general averages.'/; Insurance

companies

companies' have difficulty in making up their are very desirable stockholders;
sales
are
expanding " so rapidly minds what they want. But it is they are not worrisome; they look"
due to the introduction of hew.;not the individual investor which at the long term and are "content
products which in turn need new companies must cater to for the to be patient. And let me say that
factories and plants, the growth most part today.
It is the "pro-, this a a most desirable quality be4
company pays small dividends and' fessional" investor, in" the banks cause patience, I believe; is one of
plows back much, from 80-90%;: or trust companies/pension funds, the hallmarks of ( successful- in¬

your

only

is

tor

his

wants

He

too.

the growth

Because

cannot have come
present position without
knowing that life is one compro¬
mise after another.
I have said
Now

to

a

today's growth company.

serving.

"profession-

less

yield

have seen.

we

shorter time when the retuin on
• cost to investors is 6 or 8%. Think
the other hand how long-it
new products.
It has been brought will take, the investors in Rohm
to
mv
attention,
for example, and Haas yielding 0.32% today to
that
one
of
the newly offered have a return of 6 or o%! Or the
companies to the public, .Upjohn, stockholders - of ri.BJVL tW ki c h
in
the
drug field, had 58% of' yields only 0.44% today.
So a
last year's
sales represented by* return •;to investors in the 3-4%
products introduced in only the.area is most welcome,■ with-.an
last five years.
Between 8 and/annual rate of growth more than
10%
of its sales dollars) were:.of population or national income,
spent on research. This would be: :. Fortunately, tnese stocks prob-

compromise between

security holders must

avers

yield and growth. Maintains investors are
for growth from industry. Lists following

wants

cake and he wants'to eat

Necessarily a growth company
will have a large research orgahization which constantly is finding

Co.

Managing Partner, Shelby Cullom Davis &
Members, New York Stock Exchange

*

.

(2742)

of

substantial'mutual funds, insurance < compa-

earnings/This

its

plow-back has the effect cf keep- nies, etc. That is probably the biging the money at work . iri' the gest single change in the financial
business instead of paying it out. community
since the war—the
and Uncle Sam taking his share professionalization, let us say, of
from
the
various /stockholders, the investor class. Moneymaking,

It does not: do to try to

vesting.

get too rich too fast./.' •/( //>(/
And there you have the most

probably are halfway be¬
important segments of the finan¬
the fastest grow¬
cial community, gentlemen—pro¬
ing nor yielding the most.
It is
clid Avenue
fessional managers all and" each
in Cleveland,
probably among this-category of The compounding process/in other you see, has also been taken over with his own/particular sets of
securities that the paperboard
LaSalle Street
bosses (and I learned only a few
words, is at work longeir//f /;(// as a management function!
stocks find themselves. In a sense, in
Chicago,
The
growth ' compdhy'"further- :,> We have discussed the trust days ago a new definition of boss:
therefore, they are "all things to more will be in an industry where' investor and his general preoccu- double SOB spelled backwards)
Spring Street
all men" which is not too unhappy
in Los Ange¬
business statesmanship is mani- pation with the current benefici- —the Big Four: the trust compa¬
a situation after all.
les, and Mont¬
fest and where there is emotional1 ary. The pension fund officer is nies, the pension funds, the mu¬
Shelby Cullom Davis
How much yield is necessary to
gomery Street
stability among its top executives, on the opposite side of the fence. tual
funds,
and
the
insurance
in San Fran¬
become a
yield stock and how There is no "dog eat dog" philoso- These days, while the pension companies. And where is the in¬
cisco. There are financial commu¬ much growth for a growth stock?
phy nor are there trade jeal- funds are just building up and dividual investor? Most of them
nities all over the nation, to a
These standards change, gentle¬ ousies which represent personal starting to grow, he in concerned are included in one of these four
lesser or greater degree dominated men. I am a member of a finance
quarrels which are clearly not in chiefly with the future benefici- categories' but there are other in¬
toy Wall Street, it is true — but committee of a fund with around the
stockholders'
interest.
The aries — the remaindermen — since dividual investors, of course. But
nevertheless doing a great deal of $100 million invested. The yield executives of this industry are there are very few current bene- they have become less important
independent thinking on their own. scale is from less than */2 of 1% inclined to take the long view ficiaries receiving pensions from since the war. Furthermore, indi¬
The
financial communities
in for Rohm and Haas, a chemical and not get excited about short- the fund now.. Consequently, the vidual investors frequently are
todav

Eu¬

these various centers

in turn

are

made up of different individuals—
or sometimes the same individuals

different "hats." Take
in a bank, for

but wearing

trust

the

officer

example,

or

investment coun¬

an

Essentially
the trust officer serves two mas¬
ters: the current beneficiaries of
sellor for that matter.

the

he

trusts

and that
called the

manages

gossamer-like

person

"remainderman."

Sounds

like the "remittance"

The cur¬

ling's stories, doesn't it?
rent

the

bit

a

of Kip¬

man

beneficiary, and like as not
current

ably

beneficiary

prob¬

is

widow whose husband has

a

worked hard and saved all his life

and left his

in trust, con¬
stantly needs income. Therefore
any securities which have a large
yield sound good to her. On the
other hand, the remainderman, he
or she who receives the body
or
money

of the trust after the "cur¬
beneficiary dies, is interested
largely in growth. He or she would

corpus

rent

like the trust to be
sible

when

lier hands.

interested

it

large

as

comes

as pos¬

into

Therefore, he

his

or

or

she is

primarily in low yield,

growth securities. Of course, when
tliey become current beneficiaries,
it is quite possible that their view¬
point may change a great deal!

there you have

And

the

financial

basic

the

in

community.
Yield
or
Those are the two mas¬

grow th?
ters which you in the paperboard

industry
«tre

are

really

in effect serving. You
serving capital, it is

true. But this
someone

and

or

of

these

really twofold—
growth.

Naturally there are some greedy
persons,
and probably a
great
many

more

than you think,

who

want

not only a 10% yield but a
growth of 100% in a year or less.

But the "professionals" into whose
hands most of the money man¬

agement has passed during recent
years are more sophisticated and
know otherwise.

In 999

cases

out

of 1,000 that sort of thing
simply
"can't happen here." It is one or

•An

address

Mr.

National

Paperboard

Sulphur

Springs,

Davis

before

Association.

West

Virginia.




ments of the investment business
Emotional thinking is apt to today, is preoccupied with longaggravate any situation and lead term
growth and small yield,
to a "prince or pauper" psychol- Long-term
growth
generally
ogy. And you know what happens brings greater yield in: its wake
to the price-time earnings ratio as rising sales and rising profits
when a "prince or pauper" psy-: are gradually translated, into rischology prevails among investors, ing dividends. The pension fund
such as in the steel and copper officer is perfectly content to wait
stocks— and more notably still in for growth/ *

Reuther's

Walter
all

heard

textiles and coal.

too

frequently, General
Motors
yielding 4.0%
"ditto,"
Kennecott Copper yielding 4.4%
and the coppers have traditionally,
been
"prince or pauper stocks,"
and

Steel

Armco

Steel

yielding 4.3% and 4.6%,

spectively—"ditto"
and pauper

also,

re¬

it appears

that

property must be in danger
being expropriated either by

the

Arabs

you

steels.

And

that

pears

to

drug

stock,

stock

or

nesota

must

Mining

either

office

an

whatever

it

growth

get

you

Reuther

or

ap¬

be

a

equipment

it is that Min¬

does.

Apparently

growth

sales

the

White

company is one whose

growing faster than the

are

annual rate of

population growth
(about 2%% annually) or growth
in national income (about 3% an¬
nually). Indeed, its rate of growth
be

at

indices

least

and

double

probably

these
some¬

where between double and triple.
A

rate

of

annually
the

growth

would

growth

around

well

stock

or

—

growth rate of around 50%
five

10%

qualify

class

in
a

every

years.

Its rate of profit margin should
be both high and stable—so that
the

level

least

as

sales

if

margin
the

of

fast

profits

can

constant

up

at

as

be sustained only
introduction

with

little

consequently

gins.

moves

the growth rate of
not faster. A high profit

products

Thus

company

the

of

will have

a

for

-

into

however

better,

the

and

—

the
price-time-earnings
growth spells research

higher
ratio.

And

constant destimulation of sales
areas.
But growth must be profitable—I want to emphasize again
products,

new

—arid

run

a

usually

for his money and he

it—one way

gets

other.

the

or

:

(

What the Community Expects

and

to

.

growth, yes. They are strictly in
competition—not only with each
but with that nebulous op-

other

an

erages.
The mutual funds must
beat the "averages or individual
investors * will say, "Why hand

investors

make
a

mistakes

"prince"

our

sional

too

and
can

over

af-

cannot

fee

in

money

to these profesthem a
So the

and pay
meantime?"

investors
the

mutual fund managers must necessarily take also a' short-term

sink

"pauper." It is better to bet
on a
rising rate of growth, stable
profit margin, and rising profit,
Even
though the price may be
a

viewpoint as well as a long. They
must "beat the averages" on the
short-term swings as well. Adhigher,
the
insurance^, against mittedly this is a most difficult
"pauperism" is worth it. •
problem—and that is why they
Between

these

two

growth and yield,
body of stocks.
If

you

are

lies

extremes

the

,want to get your quarterly'figures,
ir} ad™nce of everyone else if at

great

V.

not

an

?

which is exceeding the population

or

200% per annum, you;need not

growth

be

income

concerned.

Yield
-

In

addition

an

Objective

to capital

gain

growth by 150-growth, the mutual funds

You

will

not

are

and

also

interested in yield. They are serv-

be' ing, let me repeat, the average in-

placed strictly in the growth stock

financial

does The

else

community expect from industry?
I suggest five actions or view¬
points:
*

(1) Intelligent and comprehen-;

sive disclosure of pertinent infor¬

rent

operations;

(2)

vestor— and the average investor

-.

courteous

/

,

Corporate

good

treatment

manners—

of

legitimate

investors'

inquiries, whether by
personal call;, • •
->
(3) A willingness to appear be¬
fore investor groups to tell the
story of your company or of the

mail

or

,

industry;

,•.

national

and

rather

lems

••?/<.

.

view of our
international prob¬

A broad gauge

(4)

than

a

industry

com¬

narrow

view

in

con¬
fronting the big issues of the day;
or

pany

of

(5) A reasonable passing along
higher earnings in the form of

higher dividends, including stock
dividends, so that/the^ investors*
interest seems well safeguarded.
analysis, in to¬

in the last

But

day's" market, the financial com¬
munity expects f r o m industry
growth, more growth, and still
more growth. Otherwise why take
the risk of common stock invest¬
when

ment

yield
ever

age

bonds

return

greater

industry
strive for greater than
today?

So

must
aver¬

profitable growth to win the
the hard cash—

confidence—and
of

financial

the

•-

community.
'

:

\

.

Tegtmeyer Adds
(Special to The Financial Chronicle)

CHICAGO, 111.—Paul J. Primms
has been
added to the staff of
Wm.

H.:

South

Possible.'

industry

mar¬

of

problems are
! If
mutual
your
stock-

complex.
among

statesmanship/ponent called the Dow Jones Av-

frequently
into

are

business

Professional
ford

more

.

stability about
the whole industry. Nothing chills
the
professional
investor
more
than a "prince or pauper" aspect,
an

What

than $1 mation in the annual report with
billion of adequate quarterly figures on cur¬

emotional

of

aura

be

above all there must

$15

funds

holders, chances are that you will
find them among the most restive
and on (the phone every .other
quarter or so asking how Things
are. Why should this be so?
Mutual funds are interested in

The greater the-rate of growth,
the

nearly

yield—their

even/
funds

national

number

The

siles.

public—that wants both/- growth

Profitable

or

high profit

or space mis¬
individual investor

electronics

niums,
wants

Funds

assets. This has been one of the
most spectacular growths t.Ae ti¬
nancial community lias ever seen,
In effect the small investors of th<
country, and some not so small,
too, l ave been handing over their
savings! for-,.professional investors
to invest.. And since the mutual
funds are catering to tr,e genera*

part.
Must Be

to

billion

less

from

grown

and'

Growth

by

new

competition

typical

primarily

have

velopment,

Growth Company Defined
A

in the "get rich"

type of stocks, whether it be ura¬

<

can

most

Mutual

Since the war the mutual

with
yields
tittle'1in 25 years.
Even public utility
stocks,
traditionally havens for
yield, return less than 4% for the

must belong to a highly cycli¬
industry like the coppers or

cal

Walter

or

looking

the

of

'

buy bonds today
greater than at any

' yield

your

of

professional

Investors

prince

stocks.

So to get yield

;

Bethlehem

and

Growth

-

investors
nowadays
buy
common, stocks
largely for growth, bond yields
being what they are and exceeding common stock yield | in most
cases, I think it is fair to say that
the financial community; expects
primarily growth from industry.
Since

is

voice

interested strictly

.

and .4.2%, respectively,
probably because of the fear of
expropriation in the Middle East,
one
public utility, Consumers
Power centering
around Detroit
where

unreason-

ity.

of

ing 4.3%

and
by

list

cut

ably to keep going at full capac-

matter of

there were only
seven
stocks yielding more than
4%: two oils, Socony Mobil and
Standard Oil of New Jersey yield¬

two

cither

a

recent

about 75 holdings,

should

are

As

most

our

on

capital is owned by

somebodies

yield

fact

the

wishes

Steel.

Bethlehem

typical pension fund, and they are
among the fastest growing seg-

not over-

They do
prices

swings.

build—then

sota Mining to a

it, gentle¬

conflict

term

I.B.M.

for

the public seems to like it.

The Basic Conflict

men,

(actually 0.32%) and 0.44%
and 0.85% for Minne¬
high of 4.6% for

stock

Tegtmeyer

La

&

Salle Street.^

39

Co.,
-

-

...

Joins Union Security
(Special to The Financial Chronicle)

CHICAGO, IU. — Harry Lucas
the staff of Union Se¬
Co., 29
South, La Salle

has joined

curity:

Street.

Volume

Number

189

The Commercial and

5856

Financial Chronicle

(2743)

growth

(Which,

in a

and

:

Prominent Canadian economist asserts that his country,
with the United
of

along-

rect to. state

::

Maintains inflation threatens capital*

fixed income securities.-Concludes

the

objective of stable

money

in

our

growing

a

in

--

•

economy

with full

c

:

has

f

v.V

'i

I

would -like-- to

problem

*

on.

for

ing have increased* on a
compound basis as follows: -;i:

or

>

it -bears"paijicularly»'
r
-;
the ac- Residential

as

Canadian growth and

to^epe,n?.lx? larga

are,

'

with

compare

increase-in

an

the

wefl

cost of such expenditures

be-

x

-i

.

two

prices are stable
The net effect is to

major trends in the United States
rather quickly to Canada.

The inassociated with

flationary period
the
the

Korpan War was a
Korean.War-was;a

^ood

ex-

tbe.United. States

_Muencing. The

Canadian economy.. Thus at times
„,p

farfd

qvp

nnlv

not

creep?ng

problem ol
of seeping

5

with

the

t

.

n

■

,

.

if

the~growing" problem oFfinancing S^ee;; resource
the cost of which is

„ram

?■

J

S

to

;•

j

most

,,

the

demand

materials

for

associated

inflationary

trends. ..It

mi^ht be sunnosed that

far

as

States
states

as

jg concerned

wi

the internal genera-

' \

-■

j

played

a

(

,

oh funds

hte ^owth in'expenli^ b>'

cc

l

•

large part

in^s^ Tn

a corresponding

inflation.^uTta ffie^ew SSteSTfa
b?ar thiS °«t. During The^ast future this t
ot offseiting ac.
friends handle°his pro^hl^
tiqniiwill constitute a declining
cently they have been setting us- bration of funds
by "over
am""socl?! roS
a pretty good example.
'phjs

rs^' wel^ Md'ltetes

-

,

•
compares with
O'Leary has stressed the in-' uation in the three
.

Dr.

....

,

—

,

i<

.

i-price stability deserves equal em...

mands

going

am

to.ac-

•

cept his conclusions on this point

arid

rich

United

We

Europe is
in

is

This is not

an

sit-

reverse

follow-

years

likely

go

to examine some leaCanadian economy

on

turesrof

our

„.

»

for; outside;,funds

fi-

to

is much less and
finm-Jrin*?

to-be

smaller

tmue., to grow and increase, the
.undesirable
competition for available savings. %
,

-

industrial society which
States clearly is but

toward which

soon

we

this

see

are

still moving.

type;:of pressure-in

marked form in

a

vulnerable

to

trade

unions,
show impatience with the
thought that there is any .justifi¬
our

which

cation

for

wage differentials as
Canada and the United

between

Canadians

also

seem

un¬

infla¬

offering of these shares for sale, or an offer to buy, or a solicitation of
any of such shares. The offering is made oitly by the prospectus.

penditures make greater demands
not only on domestic'savings but

an

offer to bu§

400,000 Shares

gut

not

is t0

Common Stock

likelv

nniv

som£ exten^

($i

'

...

Financing Complexities

Par Value)-

'

'

.

Chemicals, Inc.

to for-

recourse

The casual way in which many
Canadian borrowers, with no
J which seem to me to mak^ -us
The^^problem of financing the; Unned ^tates dollar earnings, as7
particularly i vulnerable Jto
the cai>ital program.is further comp]i->:fume an ■ exenange risk ot uni
problems associated- with irifla-,, cated by the growing] proportion J^PwrJ cost m order to tap the
tion
v'^/.consisting of social capital... By United States capital market at
J.
"-j J .social capital is meant expend!- on# a sma11 saving in yield gives
-and

;

tim¬

a

ex-

a

phasisr as -a: major objective with, nance capital spending will conthe other two., I

5

...

p

quarrel

can

highly developed,; broadly based
the

Reichhold
r

.

one

<

.

i

in

No

ing point of view perhaps we can
question whether we are not try¬
ing to anticipate the fruits of a

States;,

Targe part In

offset

was

us

willing to accept the risks that
are
normally associated with the
tionary trends also because of her opportunity to reap the rewards
position as a large trading nation. of living and working in a young,
It is in this role that we begin to rapidly developing
country. ;
ask the basic question stripped of
This is illustrated most clearly,
all
financial
complexities, "Are I think, by our tremendous
pre¬
we in danger of inflating our cdst
security.
structure to the extent of losing occupation with social
our competitive position in world
Continued on page 30

United

.J

to

Canada's Trading Role

}„ijX>n? potentlafof thisjiiflow

business spending lor capital items

1- LUII<xejue"'

hi
has

c*

is

subject to al¬
pressures to up¬
standards to the United

our

States level.

to

Canada

mo*-

financing

argument

with the objective but from

our

with

about the prospects of price sta¬
bility much beyond this year.

*lal sWPfies.f.or American industhe

appear

irresistible

grade

to be
resumption
of
strength in industrial prices. In
my view we cannot be complacent

development has

try
4+ "try and capital from

■

classical

*

and

rial'supplies for American indus¬

sensi-

so

*

the

standards make

particular* aspect

in fact, suffering from slug-

reflected

«

,

froSSn!?largecaoi

SS ^aTe

but

i

_

_good_ex_ tlve

ample of inflationary pressues in
.

.

Canadians

hold.

,

_

respects

States, coupled with signs
of business stability and slow im¬
provement in the United Kingdom

"

t,

young

unwilling to accept the risks and
self-discipline that are necessary

United

.

+

or

by

pattern

declining prices; How¬
ever, the current pace of business
improvement in Canada and the

the;most,cursoryA exam-,,consumer ^pricejevel;
ofaroundyond the "capacity of domestic
ination of this as other.problems,
2^2%; over the same period. As-" saving to finance;"second by deis the sensitivity of Jhe Canadian
smnjng a continued high rlevel -of stroying Confidence in fixed in-'
fi
nuc
economy to broad economic trends., capital ■ spending /in 'j the/
years come securities.
•
J in the United. States. There is re? ahead,- it seems reasonable to as'Txhe financial nroblem has been
cent evidence to suggest that this
snme
that a similar nrice differ—
i
^
masked
to some
cpncHnH+v ic
L
..•" similar piict. uiiiei
masked to some extent by the
sensitivity is fpndine tn decrease ential
tending to aecrease
will
continue to
operate. iarae ranifal inflow mainiv fmm
al inflow, main]
somewhat. Nevertheless the mulAlternativeiv if inflation auickens 7u
?r
lnilow, mainly from
tinlieitv
of
trade
and
financial ^liernail^eiymnauon quicKens the United States and the United
States and
tipucity
oi
iraae
ana_ nnanciai lts pace the differential could conhat
Kingdom, that has occurre< in reoccurred
dealings between our two counceivably widen. The point I would,,,,pn+
(viae- Vioc +V10
To an important deCcXlt
tries has the effect nf .transmitting
of trcincmitfiniJ like
to stress about this trend is
Jears*
even

the

set

when

with" this

stable

At the

on

to

our

raw

dian economic life that is revealed

?

stimulates

countries

raising
prices faster than costs is weak¬

inflation problem may seem
ill-timed in a period when we

finance,
r

;

tend

declining.

cern

of

-cumulation.,
v-

and

9n a continued nigh level gishness in

housing,6

inflation

ture hot only, the full effect Of a
Our proximity
to the United
general price inflation but an ad¬ States and the almost daily oppor¬
ditional increment as well.
Con-- tunities for a comparison of living

satisfactory

a

industrial

\Vrite into the Canadian cost struc¬

__

-

that

growth in undeveloped

a

period

a

> adopted that allay investor's fears

v

ment

and

fact that wage rates do not decline
with a downtrend in profits or in

(yearly^us far, Canada's

with

.

aspects of the, inflation

you some

•.)

explore

closely with price
industries

that

me

accept
the
inevitability of inflationary
trends and allow them to
develop
unchallenged. The classical argu¬

indus¬

resource

to

seems

"Yes" if we

ened
by the shortening of the
time-lag between a given rise in
large segment of Canadian prices and wages. It is Weakened
industry; > The joker lies in the also by the fact that in at least

tries

reached

—

the

these

is

answer

tend to rise further in such indus¬

an-

even

w

■

did the Governor
in his

in

It

the

rapidly when
profits are expanding.
Thus, in
an
inflationary period, wage rates

the result can only be a further
employment, will depend mainly on our success in reorganizing a
the structural, institutional and taxing.arrangements to engage
^ marked £Joss of ..confidence*-, in
h,e self .interest of the powerful pressure groups toward the. i < ^ borids. as a store of value.
^
J ^ j v goal of stable
prices.-; u
j - Importance of Capital Spending

.

markets?"

wage rates rise more

an
exaggerated and
^psychotic stage.
Neverthevless,'?,this - problem will not solve
itself,"^Unless new policies are

H

attaining

success

as

of Canada

in

correlate

trtends

>nual report that fear of inflation

*

m

Profits

tries

excess

of the: Bank

States, is recurrently faced with the problem'

"seeping" inflation.

;
.

spending, through inflating its cost and destroying confidence/

-

the

the

stability in
capacity in many
major industries, it may be cor-

■prices and

Economist, The Son Life Assurance Company of Canada

rose

-

constitute

reluctance of savers to commit
funds into fixed income securities.
In the light of recent

By J. W. POPKIN*
'

1956, industrial prices

all

stock

spending
>

end of

profits

12%, approximately double
value) if capital •increase in general prices.
declines because of a

basis Vof

Growing, Fully Employed Economy

industrial

after

411

,

•>-

.

Price $30.25 per

share

...

f

.

r

i

-

.

Copies of the -prospectus may be obtained from any of the scleral under¬
writers only in stales in which such underwriters are qualified to act as

-

dealers in securities and in which the -prospectus may

Canadian Characteristics

Postwar

tares for housing, municipal serv- many -observers the- jitters.
Inices, educational facilities, hospital -c%'aslJ§ foreign investor concern
-postwar Canadian economy has and the like.
This category .of-with risc^l trends ill, Canada (albeen the continuously high pro- investment is expected to consti--1 Jayed in part only by the recent

legally be distributed.

One of the characteristics-of the

-

.

;
1

;

t

,

Blyth & Co., Inc.

,

tute about 45%

of the 1959 pro-^;budget) and: concern with general
gram compared with a figure of Sbvetnment criticism ot the rble

Eastman Dillon, Union Securities & Co. J

capital .development. Over; the
past five years • capital .expanditures
including
housing
have
averaged 23% of our gross na-tional product. This compares with
about 16 to 17% in the United

35% in 1957. This trend can be-of the foreign investor in the Caexpected to continue as we mod- -naoian^economy, may well slow
ernize and expand long neglected'
movement of capital into Canservice areas in our economy. The adcL particularly lor investment in
significance of the trend from the bonds, andothus increase the pres-

Dean Witter & Co.

and.4he=, United Kingdom
same .period.
Looking
can believe
the forecasts of the Royal Com-,
States

a

the

over

into the future, if we

•

-mission

on

progress,*
-

f•

*■

-

u

u

>

laige

absorb■:a

to

continue

economic

Canada's

•

capital ...spending iwUL

-

pen-

financial point of view is the

puy

suggests

lMl

a

,„v

r°ss

of capital

-rate

9do/

%

.

o.

reliance .of ; social. capital>"
prire Volaiilitv
borrowers on the bond and mort- • '
■
T
**
In this area of the
A second characteristic
-

.

nccpcc

program,- inflation

two-edge

^rience 1

'thp

.

+i,ot

..

...

i

finder

iri-

^

It
Jfjii

'S45

and

various ca

one

a

~anadlan economy that incieases

tmnd and.

bjc shrinKing the

...

,

wi.ling

.

,to
.

,

he:

income .securities
no

-

percentage

'

the period 1979-1S81.

doubt that -fears-,1, nificance

of

this

The sig-

relationship

is

^n^a^on have already directed

industries

•

Between-

1958 price increases

for

viding

»

found in the following

P

P

we

a11

invest

type securities such

Montreal, Canada.




-

point.— the effect

as

in

equities

War
or

rose

-

industrial material prices

48%

compared

to

a

rise

of

an important 24%. in general wholesale prices.
on

Canadian

Similarly, from late

II. Ilentz & Co.
-

.

.

»

1954

to

the

,

•««

•

f'

Elworthy & Co.

Manley, Bennett & Co.
Schwahacher & Co,

..

.

Baker, Simonds & Co., Inc.
Boettcher and

Company

First California

Company

Stroud & Company

Stern Brothers & Co.

Ball, Burge & Kraus

Incorporated

Reinholdt & Gardnez

Newhard, Cook & Co.

Company

Straus, Biosser & McDowell

Bosworth, Sullivan & Company, Inc.

Incorporated
oxx

Butcher & Sherrerd

Incorporated

Julien Collins &

r*

Campbell, McCarty & Co.

.

t

o

r*

'

"

Carr, Logan & Company

...

Courts & Co.

Company

_

.

R. S. Dickson &

Company

Incorporated

First Securities Company

Dittmar & Company, Inc.

sequence

fixed, income of effects. Industrial prices are
or real.estate;,more volatile than general prices
fornis of investment. .With dif-rand rise further and faster than
ferent motivati°n ^his trend might general pricest in an inflationary
be regarded as a constructive one..: period. For example, from midhowever, those who argue that M949 to mid-1951—the inflationary
inflation is not to be feared pror ^period associated with the Korean

;

1m

is

the, other. .Gordon Commission to.rise to 28%

on

With°ut wishing to. exaggerate the: in
effect, there is

the

"it '

Shearson, Hammdl & Co.

t

Win; C. Roney &

terms

Goodbody & Co.

'

J. M. Dam & Co., Inc.

The Milwaukee Company

very

25% 'and is forecast in the

./

,

Blunt Ellis & Simmons

Company

that-is priced at the volatile torough

,

-

dustrirt. materials level. In

c?m.m.tted for investment in fixed;.aboul

'

*

,

Watling, Lerchen & Co.

Incorporated

production

funds

-

Blair & Co.

Burnham and

•

Model, Roland & Stone

Stein Bros. & Boyce
.

'

'

Baker, Weeks & Co.

.

'

...

Waist on & Co., Inc»

'
I

"■

__

Michigan Corporation

Incorporated

Lehman Brothers

W. E. Button & Co*

E. F. Button & Company
.

McDonnell & Co.

of the

In- ^ vulnerawlity ■to inflationary
by_ greatly m trends is the relatively large perof tlie program centages of Canadian

.

Doia„ddr£tb^r' aJS^invesTtSenu real estate' °verlook
Association,

with

cuts

First of

L

,

Francis I. duPont & Co.
_

Hayden, Stone & Co.

sword-bv 'greatly

.^e ?wora
fhtmg the cost

'

.

Incorporated

Shields & Company

frpnds
some .saving from
y
?securities to equity
on

in
^

.

...-

,

T.

,,

hazard Freres & Co.

Paine, Webber, Jackson & Curtis
.1

.<•

The First Boston Corporatioa

-

•

Clark, Dodge & Co.

4

A. C. Allyn and Company

sure on domestic savings.

,

-.effect-

tKx>

Tf this

a1

proves

nf

Goldman, Sachs & Co.

heavy

resources.o£

median forecast for the years 1979:

.yery

gage markets.

on

of

centage

•

.

portion] - of
our
gross
national
product that, has been devoted to

/

J. A. Bogle & Co.

of Chicago

*

Kenower, MacArthur & Co.
Nauinan, McFawn & Co.
F. J. Winckler Co.

Boenning & Co.

Bateman, Eichler & Co.

Davis, Skaggs & Co.

Bill Richards & Co.

Lester, Ryons & Co.
R. C. O'Donnell & Co..

*

Kirkpatrick-Pettis Company
Pacific Northwest Company

Rodman & Renshaw

Bingham, Walter & Burry, Inc.

Robert Garrett & Sons

Booker & Fay

Hawkins & Co.

.

Joseph, Mellen & Miller, Inc.

Irving Lundborg & Co.

MacNaughton-Greenawalt & Co.

-

Saunders, Stiver & Co.

-

Prescott, Shepard & Co., Inc.

Quail & Co., Inc.

Suplee, Yeatman, Mosley Co.
Incorporated

-

Sutro & Co»
_

Wagenseller & Durst, Inc.

Winslow, C0K1 & Stetson
Incorporated

June 17. 1959,

„

Wulff, Hansen & Co,

Tiie Commercial and Financial Chronicle

4
12

.

Thursday, June 18, 1959

.

.

(2744)

Federal Bills have been introduced in this
and of session designed to prevent a submunicipalities. Probably, the most stantial part of the savings afrailroads
through
State
tangible evidence of this was the forded
enactment by the Congress of the and municipal tax relief from beTransportation Act of 1958 and its ing siphoned off in Federal inI
repeal of the excise taxes on the come taxes.
Press reports indicate that there
transportation of freight,
cluding

The Cloud With a Silver
By HOWARD

and

Lining

FREAS*

Commission

Chairman, Interstate Commerce
Washington, D. C.

Impressed by the, general outlook for both railroad and motorI. C. C. Commissioner stresses the former's

Transportation Act of 1958 are railroad labor leaders on recrepresents
the
most
extensive ord as believing that some revisingle revision of transportation sion of some of the working rules
Jaw
since
1940.
Congress
pro¬ for railroad employees may be in
It is these working rules
vided for the granting of tem¬ order.
porary
financial
assistance
to which railroad management
railroads, through the guaranty claims are costing them vast sums
of loans
for specified purposes; of money. There is hope that this
repealed the freight excise taxes controversy will be approached
and amended the Interstate Com¬ realistically and resolved objecmanagement is
merce Act narrowing the list of tively. > Railroad
agricultural commodities exempt also taking more aggressive steps
from economic regulation. By this in some areas to recapture paslatter
amendment
the Congress senger traffic. While the problem
endeavored
to
halt the further is complex and there is no single
erosion of the traffic of regulated solution—I am optimistic enough
The

carrier industries,

greatly improved capital structure and developments indicative
of substantial growth and greater prosperity for the future.
Regarding the latter, he notes that it is the regulated minority
trucking firms that have had the phenomenal growth and
who are increasingly obtaining equity and bank commercial

of

economies

financing. Mr. Freas notes: recession inspired

loan

public sympathy; increased interest by rails to consolidate
or merge which, he is confident will occur; and prospect for
technological improvements — aided by guaranty-loan provi¬
sions of 1958 Transportation Act. All in all, he is hopeful

and

investors may

find it worthwhile to supplement rail's significant
of retained earnings.

use

officials of the
governments

State

carriers. The 1958 act also added
new
section to the Interstate

a

depreciation, was approximately Commerce Act designed to afford
mission is enjoined to administer $14.7 billion. It was exceeded by an expeditious means by which
the Interstate Commerce Act so their capitalization which totaled railroads
may
discontinue un¬
about $17 billion. At the end of
as, among other things, to promote
economical and wasteful passen¬
1957, the depreciated investment ger-train service which is not re¬
safe, adequate,
in road and equipment had risen
economical,
quired by the public convenience
to $23.4 billion whereas total capi¬
and
efficient
and necessity or which results in
talization had
been reduced to
service - and
unduly burdening interstate com¬
foster ' sound
$16.6 billion.
And during that merce.
Previously,
such
train
period the ratio of long-term debt service had been left entirely to
economic conto equity of these railroads de¬
d itionsi in
regulation by the States. Another
creased from 95 to 56%. This, im¬
transportation
amendmentto thg vaje provisions
and
provement is due in part to re¬ of the Act was designed to give
among:
ductions of debt effected through
the several
carriers greater freedom in fixing
reorganizations under the Bank¬ their rates to attract tfife"J,
earners.
The
ruptcy
Act, but results mainly competing modes of transporta¬
ultimate
ob¬
from the railroads' plowing back
jective is to
tion.
their earnings to make additions
develop, t co¬
The benefits that may be ex¬
and betterments to their proper¬
ordinate
and
pected
to
come
from
the
1958
ties.
preserve a
amendments probably will not be
The
railroad
industry
as
a
national
Howard Freas
fully apparent for many months,
whole, and of course many im¬
transportation
or perhaps years.
Some transpor¬
system by water, highway, and portant individual railroads, suf¬ tation
observers consider the leg¬
rail, as well as other means, ade¬ fered drastic reductions in their
Com¬

The Interstate Commerce

,

quate to meet the needs of com¬
merce of the United States, of the

earnings during the recent nation¬
wide economic recession. But in

Postal

this

Service, and of the national

order

to meet the

properly

confidence

the

in

confidence

such

and

industry,
can
exist

only where there is an awareness
by investors of facts which justify
optimism. It is to such facts and
the

to

outlook

future

of

in¬

the

particularly the railroad
industry, that my remarks are
mainly directed.
dustry

of
railroads
receive considerably
public acceptance
than formerly. This is due partly

Today

securities

generally
less

to

favorable

the additional

competition af¬

forded by securities of many new
expanding industries and partly
to the relatively low rate of re¬
turn, overall, which with excep¬

an

excellent

start

Although

have

Other

1920s.

contributed, but

no

good purpose would be served by
reviewing in detail the history of

some

some

in

the

field

of

has
of

been

a

in

shown

the

and

1958

1959.

the

first

as

far

as

So

whole

is
to

reason

last

half

quarter of
industry

the

concerned, there is
doubt

it

that

will

share with other industries in in¬
creased

pated

increase

speare

The

capital

railroads

today
basis

sounder

during

structures

the

are

in

1958.

This figure is not a fig¬
ment of the imagination, nor is it

bookkeeping manipulation
which can be explained away. The
amount may be somewhat differ¬
ent depending on the measuring
stick used; that is, whether you
are
referring to "out-of-pocket"
costs, "avoidable costs" or the ICC
formula. Irrespective of the yard¬
stick used, there is no escaping
the fact that the passenger-train
deficit is alarmingly high.
It is
also
absorbing
an
increasingly
greater amount of the earnings of

a

At

1920, during which
mission
tion

by

was

over

first

the

a

much
were

the

year

end

of

the Com¬

given jurisdic¬

the issuance of securities

railroads, the investment in
and
equipment of class I

road

line-haul
•An

railroads

less

address

accrued

by Mr. Freas before the
New York Society of Security Analysts,
New York City, May 29, 1959.




The indications

are

that

aptly said:

so

public officials, railroad manage¬
ment and labor, are becoming in¬
Which, like the toad, ugly and creasingly concerned about the
Sweet

they

on

than

'20s.

of

recession

The

also

lias

improvements

through

in

in
While
the
need
to
improve
service
and
achieve greater economies is not
confined to any one form of transportation, the railroads generally
have the most pressing need for
service and through reductions

operating

such

"

means

One of the most important capimprovements made under

Hal

of automatic classification
yards. Such yards are reputed to
save 24% to 33% of switching
costs, and several have been built
within the last few years at a cost
of $4 to $15 million each. While
the installation of such yards is
extremely costly, the savings realized are sufficient to amortize the
capital costs /within
relatively
short period oFtime. "Where there
is a heavy Volume of traffic to be

given tion

impetus
to
efforts by railroad
managements to better their earnings

no

today's conditions is the installa-

proved.

expenses.

improvement.

the capital expenditure
justified. The situation in

handled,
him Interest in

Consolidations

js wcll

Probably the thing which gives this respect provides another exthe effec- ample of the advantages of conof economies is the in- solidation. Of two railroads maincreased interest in the consolida- tabling separate,,yards at a parthe greatest promise for

tuation

railroads. There
where consolidation or merger would enable
railroads
to
reduce
excessive

ticular location, neither may have
sufficient traffic to make worthwhile the heavy expenditure necessary for a modern automatic

plant, eliminate duplicative facilities,
and
otherwise
eliminate

penditure might be warranted and

tion

or

are

many

merger of

situations

waste, thus enabling them to realize substantially more net profit
the

on

same

revenues.

gross

classification yard. But such exsubstantial savings might be ef-

In

fect of

reversed.

Capital Structures

im-

be

by

offer the only source for the effectuation of substantial economies by the railroads. Much
progress has been and is being
made by various railroads through
technological improvements. Many
of these improvements will re¬
quire relatively heavy capital expenditures, and'many Tailroads
find it impracticable to obtain the
necessary financing upon rcasonable terms.
Possibly some railroads will be able to make advantageous use of the guaranty- loan
provisions of the Transportation
Act of 1958 to effect some of these
needed improvements,

transporta¬

prosperity with the antici¬
in the gross
the railroads and the experience national
product.
Because
the
of
investors in their
securities. railroads'
existing plant is ca¬
Nor do 1 propose to cite a lot of pable of handling much more traf¬
statistics. While any sound ap¬ fic, substantial increases in their
praisal by an investor must take operating revenues will be quickly
into
consideration
unfavorable reflected, in much greater pro¬ the railroads from other sources.
factors
affecting
an
industry portion, in their net income.
Preliminary figures for 1958 indi¬
which may have existed in the
cate
that
the
deficit
absorbed
Blessing in Disguise
past, presently there exist ele¬
44.5% of the freight net railway
ments of strength in the railroad
Notwithstanding its ill effects, operating income.
industry which, in my opinion, the recent recession may prove
There
are
reasons
to believe
are entitled to equal, if not
great¬ to have been a blessing in dis¬ that this trend can be
stopped and
guise for the railroads. As Shake¬
er, consideration.
Sounder

will

will be irresistible.

Consolidations

tion, including the extent and ef¬

deficit as measured by the ICC
of the roads are formula amounted to $610 million

yet out of the woods, consid¬
erable improvement
in earnings

as

the

previous

not

no

since

mergers

passenger-train

and-

can

such and the prob-

carriers so great that the pressure
for meritorious consolidations and

Presently, studies are underway
in
various parts of the country
public aids to transporta¬ looking toward possible merger of
tion and the deficit operation of
certain railroads. Before any such
revenues of carriers subject to the
railroad passenger trains.
Commission's jurisdiction.
mergers can be effected it will be
The railroads' troubles were, of About the Passenger-Train Deficit necessary that they be approved
by the Interstate Commerce Comcourse, compounded by the per¬
In connection with this latter
mission. For this reason it would
ennial passenger deficit. However,
problem the Commission has just not be proper for me to indicate
in the face of declining revenues,
completed an investigation of the at this time, in advance of an apmany railroads showed unexpect¬
causes
of the passenger - train
plication, how I feel about any
ed strength in
their ability to deficit and of
possible ways and particular pronosal. However, it
control
expenses
to
a
greater means of
eliminating them.
This may be pointed out that section 5
extent than was anticipated.

the

to

compared

12-month period, there was a re¬
duction of nearly $1 billion in the

to

earn

situation

are

feeted if the traffic of both were
handled in a single yard.
v
committee on Surface Transpor¬ many instances, not only would
The use of new machines and
other industries, some of which
tation of the Senate Interstate and great economies be realized, but methods is reducing substantially
have
been
considered at least
Commerce
Committee there would be substantial im-v;labor costs incident to track mainbordering
upon
the
blue-chip Foreign
laid
the
groundwork lor future provements in service to the pub- tenance. New signal and coramuvariety.
The curtailment of in¬
action by obtaining authorization iic,
and
the
carriers involvedf nications improvements also have
dustrial production naturally re¬
to make an extensive study of a would
be
able to attract more' reduced operating costs. Centralsulted in less goods to transport.
traffic to their lines.
ized traffic control, or CTC as it
During the year ended June 30, variety of questions long trouble¬

tions the railroads have been able
factors

be

respect the railroads' experi¬
other public carriers, but contend
was
not
greatly different
that more must be done. The Sub¬
from
the
experience
of many

expanding needs of commerce and
the national defense, the trans¬
portation industry, like all other
industries, is dependent upon the
proper application of labor, man¬
agement, and capital. Of course,
new capital in sufficient amounts
1.958,
can be attracted only if investors
have

to

ence

defense.
In

islation

toward solving some of the prob¬
lems besetting the railroads and

to believe that the

economies

able benefits to the shipping publie and the security holders of the

are

the

venomous,
Wears yet a

uses

of adversity,

precious jewel in

his head.
The recession gave strong, new

plight of the passenger-train busi¬
ness.
What's
more
important
something is being done.
Recent

enactments of the legislatures of
to problems which the New York and Massachusetts, as
railroads and other carriers have well as action taken by the City

emphasis
faced

for

tribution

welfare
doubt

some

of
of

flow

greater
lems by

the
the

years.

One

recession
railroads

from

the

con¬

to
will

the
no

resulting

of their

prob¬
the public generally, in¬

awareness

of

Interstate

the

intended

was

to

Commerce
encourage

Act
the

accomplishment of mergers which
are
found to be consistent with
the

Consolida-

interests.

public

is generally called, offers opportunity for substantial reductions
in maintenance costs. It contributes
also to more expeditious

service, yet so far CTC has been
installed on only about 15% of
the railroads. ' I could mention
other examples of operating improvements which have been and
no doubt will be used to a greater
extent in the future to raise efficiency and improve the earnings
of the railroads. The efforts of
railroad managements and technicians to effectuate further improvements have been spurred by
the recession and the necessities
of a competitive economy. I am
confident that they will produce
other innovations equally as important as those, which have been

approved by
exempted
from
the anti-trust laws.
In a
communication to Congress last mentioned,

lions

and

mergers

Commission-

the

arc

the Commission took the " _
.
_
position that where consolidations
Traises Plowback oi Earnings
of railroads would produce subAs indicated, however, most of
stantial economies without sacri- these things cost money — and

year

ficing service to shippers or otherwise affecting the public interest

money

in

substantial

amounts,

The railroads have been plowing
adversely,
such
consolidations back into their plants a large proshould be
encouraged. We ex- portion of their net earnings —
pressed the view, however, that approximately 50%
in the 11
such

proposals should be initiated
1

" 1

years

ft

J1

l

i

^

by the railroads voluntarily.

ended Dec. 31, 1957. During
A4

Hopeful Rails Will Act
Since World War II, there have
been few

significant proposals for
of in-

the consolidation or merger

dependently

railroads,

controlled

Only one—and that is

a

cent

been

application—has

sented

to

approval.
problems
mounted

the

very re-

preCommission for its

In view of the serious
which must be surto effectuate the consoli-

this

period

has

«

increased

$5

billion,

debt

has

their net investment
by approximately

whereas their funded

increased

by

only

a

small fraction of that amount.
In order that the railroads may

meet the needs of the nation's
expanding economy and the needs
of the national defense, and be enabled to effectuate the indicated

economies in their operations, it
is, of course, important that they
obtain additional capital to

sup-

railroads, and the plement their retained earnings,
alleged resistance of some man- As
previously indicated,
such
of Philadelphia, are evidence of agements to taking a subordinate capital in sufficient amounts will
this.
position,
some
observers doubt come from private sources only
As already mentioned, Congress that important results can be ob- if there is generated greater con¬
in its last session provided for re¬ tained from voluntary efforts of fidence by the investing public in
sort to the ICC in connection with the carriers.
I do not agree. I am the future of the industry. Railmanagements themselves
passenger - train discontinuances. convinced that the possibilities of-road
dation of large

Volume

189

Number 5856

.

.

The Commercial and Financial Chronicle

.

13

(2745)
may do much

conclusions

along this line. The

of

members

of

your

profession will play a great, if not
leading, part in determining the
attitude of the investing
public.
This in turn will

the

ence

railroad

materially influ¬

future

welfare

industry,

the

of

indirectly

and

that of the nation's overall

The verdict, of course, must
be based upon hard
facts, and I
make no plea for favored treat¬
of

other.

one

industry over
urge, however, that

I

an¬

you

carefully consider the many fac¬
mentioned, and others which
working in favor of the rail¬

tors
are

road

do not wish

I

industry and which, in

my

opinion,, give

indication of sub¬
stantial growth and greater pros¬
perity for the future.
..v..

that

pression
carriers
Of

to

leave

for-hire

all

state

20,000

are

motor

sion's

regulations.
A
portion
of
for-hire
motor carriage — principally that
of

carriers

engaged in the trans¬

portation of agricultural commod¬
ities—is unregulated.
There appears to be
tial

difference

health: and

in

"

substan¬

a

the

financial

of those
regulated and

are

4;

Financing

almost

\p)i

entirely to railroads since

securities

constitute

large proportion in
transportation

such

rities

exchanges and

est to the

ever, I
tion of

which
secu¬

of inter¬

are

public generally.

How¬

do not wish to omit
the

a

amount of the

securities

traded upon the national

are

securities

men¬

of

freight
and passenger carriers
by motor
vehicle, which also are subject to
regulation by the Interstate Com¬
Commission.

merce

ties

of

few

a

national

on

others

these

of

the counter.

larly

securi¬

have
growth since World War If, and
to an
increasing extent they are
finding it necessary and desirable
to

establish

their

public

a

market

for

placed

of

motor

of

this

class generally
is com¬
mainly of motor vehicles
with relatively short life as com¬
pared to Wie properties of rail¬
roads, and the financing of the
acquisition
of
such
equipment
usually is made through arrange¬

prised

with the builders or by
private placement with financing
ments

institutions

of

conditional-sales

agreements or chattel mortgages.
It is problematical whether there
is likelihood in the

wide

future of

near

public

marketing of"
debt securities of motor carriers,
but it is likely that you will be
any

concerned to

an

increasing extent

with public offerings of their com¬
mon
and preferred stocks.
Also,

increasing

an

shown

have

number
interest

banks

of
in

the

fi¬

nancing of equipment acquisitions

by truck lines. It was recently
predicted by a competent financial
that

observer

within

five

one-

an¬

number have annual

a

exceeding $20 mil¬
hand, while we
statistics with respect to

On the other

have

no

the

individual

incomes

the

of

carriers, there is testi¬
that conditions among these
carriers
are
not
good.
This is
exempt

what

spokesman

one

carriers

said

in

for

these

testifying before

Congress.
have

found

one-third

in

of-'i-

our

Two associations of these carriers

then asked Congress to be placed

regulation.

Dispels

been

the

of

At times the ill fortunes of par¬
securities are blamed on

ticular

the fact that the issuing companies

"regulated." It is not my pur¬
to disprove such inference,
but I believe that an analysis of

are

pose

the fortunes of the motor-carrier

industry would do much to dispel

present

our

in

meet,

is

right, ;,but, the

that

growth is

one

have infla-..
tion." This

if

tensive use.

improvement

Bargeron

in

improvement.

Recently

businesses

thorough study of the comparative
growth records of this country and
Russia, put some figures in the
CongresSiohal Record which show

in

specialize in the handling
specific commodi-

or more

ties, being- restricted in certain
instances* for example to com¬
modities in bulk, or tank trucks,

heavy articles requiring special
equipment
The
operations
of

or

a

small

area

while

others, such as movers of
goods,
may
operate
throughout
the
United
States.
Their
vulnerability to competi¬
tion or, perhaps, the vicissitudes
of a particular industry, depends
upon the nature and scope of the
particular operations conducted.
Any appraisal of motor-carrier se¬
curities thus requires
a
careful
analysis of the operations in which
household

the
is

carrier

difficult

involved
to

make

engages.
any

It

general
is safe

characterizations; but it
that, based on the past and
present-indications, the motorcarrier industry as a whole pos¬

to say
on




to

grow

the

situation

is

not

half

1850

to

for

and

other

satisfactions.

40

hour

week

of

as

economists are
certainly should

cdhtehding and
not

of

throw
our

today.

some

us

off

the

even

Although

tenor

unreliable

Essentially the concern about
Russia is a healthy one, Senator
Bennett
says,
"and will be of
priceless value if it spurs us to

policies which
inhibit our growth."

tho^e of
or

fact

our

he continues, that
we
are
the richest nation today
and in the world's
history, al¬
though we have about six percent
of

is,

world's

the

produce

and

population. We
one-third
,

goods and services.

comes

from

our

need

of

are

rein-

U.S.S.R.

decades

to

1950 and 1957 the So¬

prices. Ours increased $97 billion,
two-thirds
again
as * much
as
theirs. Looking at ratios of Rus¬
sian gross national product to U. S.
gross national product, the Soviets
increased

size

their

from

40

to

relative

to 44%

during the
1958. But* based
011
anticipated growth rates over
the next decade, Russia's gross
national, product will still likely
be less than half of ours by 1970.
ours

recession

year

absolute
in

gap

$241

was

1958, but it will

bil¬
to

grow

$395 billion in 1970. On a per
capita basis, Russia's gross national
product will still be 40% only
of. ours by 1970.
the

If
to

by,

say,

the*" United

and*

continue

U.S.S.R. should

expand

6%

per

year

by

4%,

States

national
product
wouldleaft^tfeup with U. S. gross
Soviet^ gross

/V

national pfocTiict sometime in the
next

cal

century. But such mechani¬

extrapolation

future

cal,

with

social,

stances

is

into

a

distant

unknown technologi¬

and

political circum¬

meaningless.

Turning

to

-

industrial

produc¬

tion, Mr. Khrushchev has boasted
that Russia

will

advance to first

place in the world in absolute
national product but in¬
volume and per capita industrial
dustrial growth rate at 9Mi% per
production by 1970. However, this
year as compared with our own
average
industrial
growth
rate boast assumes that U. S. industrial
over the period
1950-57 of 3.6%. production will grow at about 2 %

not gross

One-half of the world's manufac¬
tured goods

Soviet data

economy in the world, and placed
its
1951-58
industrial
growth—

consume

of the world's

in

terpretation by our own statis¬
ticians, we must recognize that
Russia has had a more rapid rate
of growth in recent years than we
have. Allen W. Dulles, head of
the CIA, in a speech on April 8,
1959, recognized the Soviet Union
as
the second largest industrial

ways.

correct

many

and

many

viet real gross national product in¬
creased by a value of 60 billion
American dollars, in terms of 1957

The

time

the

Between

lion

important

for

come.

more

American productivity has
steadily gone up, working hours
have steadily gone down, from an
average of about 70 hours a week

as

and

now

might have done
people might

our

While

in

now

we

still far ahead of the

ca

fac¬

Though

two-thirds of its automo¬
registered in the United

are

industrial

output

fig¬

a

year,

have important implications,

ures

and it assumes a Russian

gross

qualified.
If my
arriving at a
sound appraisal, just and reason¬
able

to

the

investors

and

carrier

■

.

w

■

-

■■

t

This advertisement is neither

an

offer to sell

nor a

solicitation of offers to buy

any

of these securities.

The offering is made only by the Prospectus.

I

f

NEW ISSUE
■t-,*<

100,000 Shares

Organization Changes
A major realignment of admin¬

erty engage vary greatly. Some
haul commodities generally, both
small and large shipments; while

confined to

more

equally

Soviet

national

eminently

are

dures in the home office of Bache

are

have

Senator

Bennett of Utah, who has made a

we

that

United

remarks aid them in

istrative

some

order

as

hour week.

step up this rate
but significantly,

chosen

slowly than

real

of
and

growth of approximately 9% per
national
product
figures
In conclusion, I should slate that
States, one for every 2*/% persons provide a more complete economic year. Both of these assumptions
my objective today has been to
which is ten times the world aver¬ comparison of the two countries. are absurd.
throw some light on the general
and
24
times the Russian Soviet gross national product has
A 2% rate of industrial output
outlook of the railroad and motor- age
average.
We
produce half
the grown at an annual rate of
carrier industries.
is well below the U. S. experience
Naturally, I
world's oil, 40% of its electricity roughly
614%
over
the
seven
.have refrained from commenting
over the decade
1948-57 of 3.6%
and
one-fourth
of
the
world's years
1950-57. Per capita gross
with respect to any particular car¬
railroad mileage.
national product over the same per year. It is expected to exceed
rier.
The prospects of individual
during the decade rof the
During the past century our period in Russia grew at an an¬ 4%
members of these industries and
nual rate of 4Vz%.
1960s.
the investment characteristics of rate of output has risen so rapidly
Oii the other hand there
In comparison the U. S. gross
that the average American work¬
their securities vary widely.
An¬
is
already
evidence
that
the
er
today
produces
nearly
8V2 national product grew at an an¬
alyses of these differences and ap¬
Russian growth rates are declin¬
times as much in an hour of work
nual rate of 3%% over the seven
praisal of particular securities is
as
his great grandfather did in years
1950-57,
and per capita ing
a job for which security analysts

which the motor carriers of prop¬

one

have

day

seven

even

wished,

we

we

Carlisle

a

We could

,

analysis

America

years

ment-trust method will be in ex¬

others

hour

seven

produce in

would give us
a
statistical

a

in

another century, if the
rates continue, we shall
able to produce as much in

be

to

but not

$3.45 in goods

present

to increase

our

estimated

an

services.

today, according to
Bennett, American pro¬
ductivity, meaning the average
output per hour of work, is con¬
tinuing to increase at such a pace

Bache Announces

of

1958

average

And 'even

way1 that, is
advocated ;for

biles

t

,

in

an

Senator

a:

threat;all

us

power,

and

Russia.;

There

tories,

such notions.

.

of

ing

jthreat/

from'.

The

Notion

trucking industry and banking alike, I shall feel amply rewarded
for my remarks.
world will be living with a form
of commercial paper, in the field
of truck financing, and that at
least a
variation of the equip¬

types

Measured

duced

weaken

Scapegoat

the

The

1850.

economic

rate

alarmed

become

product
figures
places the United States of Ameri¬

growth;

the

crease

alarming
the>tIsmail-

frightening proportion.

a

has

country that
greatly in¬

of

gross

purchas¬
hour's
work in 1850 yielded 41c worth
of goods and services, while an
average hour's work in 1958 pro¬

or

careful

A

States

area

exempt truckers go out of busi¬
ness
a
year.
Of course, there is
always
someone
to
take
their
place but the turnover has
reached

there

this

in

double

that

mony

the public market have

on

as

gross revenues

lion.

carriers

consisted.almost entirely of equity
issues. The fixed plant of carriers

men-,

exceeding $1 million

nually and

under

securities.

Securities

over

revenues

about

Truck lines particu¬
shown a phenomenal

As

starting

many

—

We

over

•

one-truck operations. Today
1,000 of these have gross

man,

some

and

frequently

not.

are

number of the regulated
have
had
phenomenal

a

growth

listed

are

exchanges

traded

are

The

which

carriers

My remarks have been devoted
their

those

sometime

must

order to

well-being

carriers which

Honed,
.

For

propaganda
we

we

better.

of the News

By CARLISLE BARGERON

sub ject to the Commis¬

before

But

Ahead

economic

substantial

increased

product

annual rate of 1%%.

an

by these comparisons, let us take
them apart and understand them

motor

regulated by the ICC.

are

estimated

67,000 for-hire
carriers engaged in inter¬
transportation only about

an

.

Reviews Truck Carriers'

From

im¬

the

national

gross-

at

Extent Regulated

econ¬

omy.

ment

sesses great potential for further
growth.

and

& Co., 36
and

operational

Atlantic Research

Administrative

of

Services

a

new

Division

Common Stock

under the direction of Charles D.

Halsey,
been

Corporation

Wall Street, New York,
establishment

the

proce¬

general

a

announced

partner, have
by Harold L.

(par value $0.05

per

Share)

Bache, senior managing partner.
"At

the

nounced

partner

same

thf.t

in

time,

it

William

charge

of

was

an¬

Kann, the
the Com¬

Price $15 per

munications

Department, and El¬
Comer, the Operations Man¬
ager, will report directly to Adolph
Woolner, the partner-in-charge of
the Fiduciary and Control Divi¬

Share

mer

sion.

will

Messrs.

Kann

continue

Copies of the Prospectus may be obtained from the undersigned only
which the undersigned is qualified to act as a dealer
in securities and in which the Prospectus may legally be distributed.

in States in

Comer

their

with

and

present

responsibilities.

Cady, Roberts Partners

Johnston, Lemon & Co.

Cady, Roberts & Co., 488 Madi¬
son Ave.,
New York City, mem¬
bers of the New York Stock Ex¬

change,

on

July

1

Robert

M.

Hart to

partnership.

Gintel

will
and

admit

Herbert

June 17,1959

h: i

The Commercial

14

and Financial Chronicle

Thursday, June 18, 1959

.

r(2746)

i

Director, Development

.

Army Ballistic

I

Space"

field

Missile Agency
Missile Command
Alabama

to achieve

are

undisputed technological leadership. One of

materials

what

As

beginning,

a

point of de¬

a

present space capabilities and
those missile systems which have
our

been

developed,

or

are

under de¬

velopment, to meet the military
needs associated with national de¬
fense. Practically all the work so
far conducted in space has been
the

which,

obviously,

The booster, named Saturn, is
being designed and fabricated at
the
Army
Ballistic
Missile
Agency. Our 140-foot static test
tower is being modified for static
firing the Saturn at Redstone Ar¬
senal.
The
first
flight
test
is
scheduled from Cape Canaveral,

LOX as

it

is

Its physi¬

condition,

problem in any
stationary installation, is ofr still
more
importance in the missile
Corrosion,

a

addition to the common

field. In

environment of humid

suitable for application:

stainless

austenitic

impact force.

with LOX under low

organic

of

Traces

materials

on

valves

of

A

was

gaskets

or

limit

react

can

explosively-with LOXv

.or

atmosphere

there¬

fore,
has
been
established to
qualify materials as reasonable
An

risks.

instrument

devel¬

was

that

thought

resistant

insensitivity,

of

signer

and
to

at

'

Erosion resistance ' :

(7) Corrosion resistance
Aging characteristics

(8)
*

Nominal cost

(9)

Designer's

Preferences

expect,

Usually, as you might
the
designer looks first

to the
strength-to-weight ratio.
For
lightweight
booster components
which
are
required to operate
low

under

ambient

tures,

high-strength,

view

of

or

generally

materials

tempera¬

non-ferrous
used in
strength-

are

their excellent

weight ratios. Thus, booster air¬
frames
made
essentially
from
materials

non-ferrous

are

em¬

ployed
in
the
Redstone
and
Jupiter missiles. One of the over¬
riding concerns is the military
requirement to move these giant
rockets about—to airlift them—
with

relative

This, in turn,

ease.

establishes size and weight param¬

both

since

eters

within

are

must

operate.

stainless steel

corrosion

tem-

ductility

and

Strength

(6)

severe

aluminum

elevated

sub-zero temperature,

r

where bimetallic
contacts
in
corrosive
fuels
or
oxidizers are involved. We once
used a flow meter which had an
aluminum
barrel
with/-stainless
steel flow straighteners. The de¬
ticularly

metallic surfaces or as components

chosen because of the
proven extreme reliability of the
existing engine. The Saturn sys¬
tem, we feel, will answer the na¬
tion's immediate need for a rela¬

and the Air Force's
ATLAS.
Since these

are

aluminum,

ARPA has said the cluster con¬

cept

JUPITER —with which I am most
—

or

steel, copper and perhaps magne¬
sium. Titanium reacts explosively

Fla., in I960.,

upon

familiar

oxygen,

at

peratures

-

(5)

X

of sheets and
: - v' •
'

"

which

and

.

is

500,000 pounds thrust.

use

military rockets, like
Army's REDSTONE and

based

it

a

booster unit capable of about 1,-

to

jeopardizes the outer space program.
parture, let me call attention to
the intimate relationship between

weight

conserve

grade, resulting in quite a loss of ori sea climate Conditions, we have
material in the case of" insuffi¬
to fight the corrosive attack of
cient
insulation.
Insulation," on"
propellants used in the missile
the other hand, imposes a weight and its attendant ground support
penalty which is undesirable. At system. As I said, the apparently
LOX temperature only three or innocent alcohol is actually very
four
metallic
materials
exist - corrosive and corrosion is par¬

limiting factors, he reveals, is the non-availability of
suitable structural materials which compels the designer to
at

to

work is now in progress.
>

however, causes a
lot of difficulty since-the liquid
boils at minus 183 degrees. Centi¬
cal

our

guess

order

peroxide are desirable to use
higher
strength

known to missile men.

that the Russians are still ahead of us in
larger missile-propulsion devices, he urges us to "run hard" if
we

hydrogen

concentrated oxidizer than

liquid

opments. Warning

V (4) Strength

decomposition of the
hydrogen peroxide. Recently, the

by

and

a more

and invites mutually rewarding devel¬

(3) Availability
shapes

,

will catalyze

wnn

material of
used.
than
stainless
Consider some of the materials steel. This would be possible if a
problems
introduced "by 'these; boating material resistant to H202
propellants. It is difficult to find could be developed. Development

hol

for iron and steel industry the con¬
tributions ferrous metals can make to space exploration;
reviews some of the accomplishments thus far achieved in thenational space program;

concerned

are

Missile liquid oxygen, alco¬

stone

;

Braun pinpoints

von

••

■

systems which must be
troops under battle- ! precipitation hardening stainless
conditions.
For the
Red-j steels, have been', employed. In

handled

Redstone Arsenal,

Dr.

we

Relative ease and reliability
of fabrieatiton

problems

weapons

Operations

U. S. Army Ordnance

i

the

wnen

WERNHER VON BRAUN*

By DR.

L

to

due

(2)

stabilized

inherent in steels, 347 and 321, are satisfactory.
the containing and transfer of the I Unless stabilized welding rod is
used the chromium deficient areas
liquids. This becomes a solution
inacceptable - for
employment; will rust and the rust, in turn,

We Mast Run Hard to Win
The "Race Into

the

only

involved

is

combination

optimum

the

ploy

the

which

So

far

designer

as

move-

under

ability goes, the liquid propellant
atmospheric conditions, the com¬ sockets have a distinct advantage
bination
would
be =- e quail y. with respect to weight. They can
satisfactory.
We
were
able to be shipped empty and fueled on
demonstrate that this bimetallic the launching pad—the propellant,
connection imbedded .in the elec¬ of course, is by far the heaviest

determine the LOX im¬
pact sensitivity of materials in the trolyte formed by the fuel pro¬
were
the systems
available for
element in the entire system.
\
Army Ballistic Missile Agency. duced an electromotive force of
space applications at the time
Ferrous metals have a major ad¬
tively inexpensive, reliable booster This device is now utilized'in 0.7 volt—a pretty good battery!
when it was decided we should
vantage where elevated tempera¬
other laboratories throughout Jhe
proceed "at all deliberate speed" capable of lifting into satellite
tures and high internal pressure
orbit or outward to space jour¬ country.
While relying upon the ; "
to
implement a national effort,
90% Use of Aluminum
are involved.
For example, solid
results obtained from it, we have
neys, a multi-ton load of scientific
our
achievements
have
been
Aluminum constitutes approxi¬ propellant motor cases are manu¬
instrumentation.
never had an accident with liquid
limited to the basic capabilities of
factured from steel in almost all
This
would
be
mately 90% of the total airframe
considerably oxygen.
"V
these systems.
instances! One reason is that with
weight of our larger military mis¬
Corrosive Effect
That
is
the
reason
why the larger than anything the competi¬ :
small rockets the weight of the
siles. The Redstone and the Jupi¬
EXPLORER earth
satellites tion has yet demonstrated. Note I
The fuel selected for the Red- case is not quite as critical as in
ter are ' examples.
However, this
did not say larger than anything
launched by the Army in connec¬
stone, alcohol, is easily handled., does not mean necessarily that the bigger missiles such as the
the
competition has—we simply
tion with the International Geo¬
■but it is very corrosive :to steel,,
An¬
aluminum will continue to' domi¬ Redstone, Jupiter or Thor.
do not know what our Soviet ri¬
physical
Year
were
relatively
and light metals.
As you; well nate the missile airframe materi¬ other reason is the high pressures
vals are up to next on their space
light payloads
when compared
know, alcohol even corrodes peo¬ als field. It cannot, I. should add, and elevated temperatures char¬
with the heavier satellites orbited conquest schedule. On the basis of ple. I The alcohol-water , mixture \
acteristic of the solid fuel rocket
if we
expect to push ahead at
the
evidence
of
late
1957 and
we
are
by our competitors behind the
using in the Redstone is
which gives a
definite edge to
accelerated pace.
1958, however, I suggest we must
Iron Curtain. That is also why our
more corrosive than either of the
high strength steel for the casings.
conclude they are hard at work
/
Aluminum
begins
to
suffer
Pioneer
space
probes,
one. of
components alone and this cor¬
Industry
arid
Government
re¬
and that they still enjoy some¬
measurable loss of strength above
which escaped Earth's gravity to
rosion problem is more evident in ¬
search laboratories are now en¬
,400 degrees Fahrenheit. This be¬
become a satellite of the solar thing of an advantage in larger field handling. :
,
,;4V ;
gaged in extensive research and
propulsion systems.
comes a limiting factor in the case
fystem, were so much smaller in
The
development programs
to
find
propellants must be fed
of missiles operating for longer
weight than the Soviet Lunik. It
even stronger steels for solid pro¬
Must Run Hard to Win
into
the
Redstone's
combustion
periods
of time
and
at
high
comes
down
to
a
question of
chamber
against
the
chamber
pellant rocket cases.
Some ma¬
If we are going to catch up in
.velocity in the denser atmosphere.
thrust; that is, how much energy this
terials presently used, .or being
all-important
"race
into -pressure, requiring fuel and LOX Trajectory parameters sometimes
can vou release at Earth's surface
considered, for motor case appli¬
of
considerable
horse¬ dictate
space," if we are to forge ahead pumps
just such conditions and cations and their maximum yield
$0 propel a rocket system through
power.
A steam generation unit there
and establish undisputed techno¬
may be other valid reasons
the
fcidvitationai lieid and tne
was installed to drive the turbine
strength are as follows:
■■■(■
logical leadership, it behooves us
why the rocket system must be )
atmosphere into the vacuum of
Max. Yield
to run hard!
I am not going to which in turn drives the centrif¬
operating within the atmospheric
space.
In the case of Redstone,
Material.
\
Strength, PSI
ugal pumps.
In order to obtain environment where the drag co-'
attempt to handicap this race. I
which
we
modified
for
spatial
Vasco jet 1,000
for a short time a large amount
—250,000 ;
can only
say, at this juncture, that
efficient
and
the
aerodynamic
missions, the thrust developed by
of high pressure steam sufficient
Peerless 56
250,000
we have not heard the last word
exotic fuel was in the order of
heating combine to create a poten ¬
from
Mr.
Khrushchev's
rocket to drive that turbine, high concen¬
240,000
tial trouble area. In these situa¬ Tricent
85,000 pounds. In the case of Jup¬
teams. It is altogether likely they tration hydrogen peroxide is em¬
tions the surface temperature of .17-7 PH __!
__:
220,000
iter, converted into the Juno II are
pushing as rapidly as they ployed. Everyone is familiar with the aluminum skin could exceed
-system for space assignments, the
4,130 i
180,000 ;
can to put man in space.
They ap¬ the 3% aqueous solution of hydro¬ the melting
thrust
runs
to
about
point of the metal as
150,000
preciate the propaganda edge they gen peroxide used for bleaching well as the working temperature 4,340
——
220,000
pounds. jUsing two engines of like
achieved with the first Sputnik and how it decomposes spontane¬
PH 15-7 MO.
235,000
of most other commercially avail¬
design, the booster portion of the
and, to lesser extent, with the ously in contact with organic ma¬ able metals. This is at least one
USS-X-200
240,000
Atlas
intercontinental
ballistic
Lunik.
If we regain the initia¬
terial, liberating oxygen, water
of the reasons why the designers
missile has a thrust of about 300,Even
the
strengths-weight
tive, it will not be because our and a little heat. In the decompo¬ of our first intercontinental bal¬
000 pounds.
ratios of these materials are not
took a
holiday or sition of high concentration hydro¬ listic
Until we develop something of competition
missiles, the Air Force's
elected to work a shorter week!
gen peroxide, the heat produced is
adequate for current propellants.
a
larger
order
of
ATLAS,
have selected a
steel It is
magnitude,
sufficient to generate steam. It is
expected that higher energy,
Having thus briefly intro¬
alloy for their airframe.
therefore, our operations
must
duced the competitive aspect of relatively stable and can be stored
propellants will be developed and
necessarily be limited to these
'The sad fact is that designs of these will
our
require still more ad¬
position in the area of con¬ in commercially pure aluminum
energies. More thrust can be ob¬
advanced missile and supersonic vanced
ventional propellents and the en¬ containers with practically no de¬
strength-weight ratios. '•
tained by increasing the specific
aircraft are already being limited
For the REDSTONE Missile sys¬
gines to burn them, let me turn composition and in stainless steel
impulse of fuels used; scaling up
only slight decomposition.- by the non-availability of suitable tem, the first of the truly big bal¬
now
to a discussion of the field with
the size of the engine; or assem¬
materials. The designer must solve listic missiles developed in this
a
small
amount
of
directly in the area of interest to However,
bling a cluster of reliable proven
his problem' by the use of com¬
country to reach the field, a low
steel—metal applications in mis¬ foreign substance will initiate the
engines already in hand. The first
the
decomposition of H202 into posite materials, unorthodox de¬ alloy, high strength steel, MIL-Ssile systems.
two are evolutionary approaches
unusual fabrication tech¬ 7,809 (Corten), was employed for
water and oxygen. The exothermic signs,
which
will
eventually
furnish
The Matter of Metals
reaction will vaporize the water niques and materials applications the skin of the nose cone and the
greater weight-lifting capacity for
on
occasion, also by dis¬ attached instrument compartment
Engineers
are
accustomed
to and a steam containing oxygen re¬ and,
America's launching vehicles. But
commonly,
accepted due to the elevated skin temper¬
being handed a set of seemingly sults. Steam generated in a con¬ regarding
to fill the void for a quick, reli¬
trolled manner is used to drive margins of safety. Obviously this
atures
encountered
during - re¬
impossible requirements with in¬
able high-thrust booster, we are
situation
cannot
long
continue entry and dive through the at¬
structions
the propellant feeding pumps.
to
find
the- solution.
else
the
success
of
our
entire mosphere. The nose cone protects
currently attacking the problem Building more powerful rocket
A great deal of investigation has
advancing space program may be
from the cluster approach for the engines poses many problems. For been carried on of all
the
warhead from
aerodynamic
possible
The materials re¬
example,
physical
and * organic variables to find
the
optimum jeopardized!
Research
Advanced
Projects
heating as it plunges back from
in
tomorrow's
missile
chemists can determine theoret¬ condition and composition of a quired
Agency of the Defense Depart¬
ically a combination, of. fuel and catalyst for decomposition of design are dependent upon the airless space into the dense at¬
THOR

and

oped

to

.

.

„

.

.

.

—

_______

— -

.

ment

tics

and

and

Employing

the National Aeronau¬

oxidizer which will yield the

Space

Administration.

sired

thrust.

cluster of eight Ju¬

fuels

in'rocketry

bons,

hydrazine

a

piter-type,

liquid

gines,

expect

we

propellant
to

obtain

•An address

en¬
a

by Dr. von Braun before
toe 67th general meeting of the Ame^an
Iron and Steel Institute, New York City.
May 27, 1959.




Some

dizers

nitric
ide.

of

the

are

are'hydrocar¬
and

common

ammonia.

liquid oxi¬

liquid oxygen, fuming

acid, and hydrogen

But

de¬

Among the proven

one

cannot

perox¬

always

em¬

HoOo.

In

handling
cause

were

for

of

ingenuity

of

and

searcher working

investigated.

Be¬

well

lacks

sufficient

pressurized

missile

containers, stainless, steel is used
which has received

a

special

pas-

sivation treatment. Where welding

as

not

In the instrument com¬

partment

are

requirements de¬

manded by current

may
.

missile systems

be listed as follows:

(1) .Ultimate

ratio

the im¬

mosphere
pact area.

materials

nonferrous materials.

The structural

•

from

far

re¬

with ferrous as

the

storage

during

aluminum

strength

methods

addition

stabilization

strength-to-weight

control
the

missile to

its

and
constrain

guidance

the

systems

which

pre-determined
and

provide

ballistic

trajectory

terminal

guidance all tjie way

the target.

to

These too,require pro-

Volume

tection

Number 5856

189

the

against

high

.

.

.

The Commercial and Financial Chronicle

deepjpenetration of all reliability of both military and
spaces—augured
well scientific
missile
systems.
The
future, I would point out: guided missile is unique among
these
were
not i very
large ye- transportation systems because the
hides, the weight and size of in- most expensive part of the system
strumentation
was < sharply
reis. expended in the delivery of the
stricted, and * thatthe vproblemv payload—whether it is a nuclear
planetary

for

Steel
Other

Components

missile

components usu¬
ally made of steel, further reflect¬
ing the /common interest of the
missile designer and the steel en¬

takes
we

(3) High,where

SAE

,(4)
zles]

Thrust
/

is

4,130

chamber

"7

and

radiation shields
protect the missile tail.

to

Fire walls.

(7)
Missile
ground
support
equipment including the fuel and
f

oxidizer trucks, instrument
personnel carriers
flectors.

vans,

and flame

de¬

:^r,'

.

(8)

.

Finally, the manufacturing

tools required to form, and shape
and assemble components and the

complete system.

-

.

r

i

:

^"

,

What I have been discussing in
the

metals

field

to this point
concerned the military missile sys¬
tems,. mid-range,, intermediaterange

or

up

to
1,500
nautical
the 5,000-mile inter¬

up

miles,

and
continental

missiles.

I

will

would

hicles

designed

^

outer

ve¬

'
especially
for
penetrations, addi¬

space

tional

demands confront us
the system designer.
! ;

and

■

jTi".

conditions

The

encountered

a

new

7 7~"

\vhich

outer

in

.T.

will

.

be

space

pre-

engineer

with

1

Outer Space Demands

*

For example, we will be looking

for

materials

sistant

to

which

the

will

be

re¬

adverse .conditions

of the space environment. They
include extremes of temperature,
•

high

vacuum, "solar radiation,
cosmic radiation,
residual gases
-

on

space

lack

irig at incredible velocities, 24,800
miles per hour in the case of
Pibneer IV, human intervention
cannot' be

of

information

depended

for
corrections in course, or in the
level of propulsion thrust, or other
similar factors. That is why the
modern
long-range rocket is a
triumph of automation, and it is
also why we must find materials

Perkin-Elmer Corporation, Norwalk, has been awarded contracts
totaling
$940,000 by
Princeton
University for the design and con¬
struction of a 36 inch aperature
telescope, which will be carried
aloft by an unmanned balloon for
photography of planets. The in¬
strument

be depended upon to
requirements
unheard-of
previously
can

meet

rnu

>

,

.

;

.

.

of space travel
2 51S iimir!nS,i-challenge to the
enSmeer- Building missiles and
outei space vehicles is a team efA very important position on

-

^

that

team

must

be

occupied

specialists

in

by

Govern¬

.vni;

t,

nit

on

_Pbig^

bl
g%

Aiaokat

ic

United Aircraft

East Hartford, has agreed to acquire

l

>

exactly how serious the environ-

■

ij

-

months

Nationale
struction
Paris.

31, 1958. This was

the trail blazer, so to speak, and
gave ' us

quite

exact

information

Of the physical conditions
had to .meet.
V,.- '
'

on some

we

,

,/ The outer shell of the satellite,
based upon original design work
by Josef Boehm of the Army Bal¬
listic. Missile Agency, consisted
of a 12-inch long stainless steel
.cone

and

steel

a

21-inch long stainless

cylinder
6,25
inches
in
- In
orbit, and I might
.

diameter.

th©

000 shares of common stock which

one

share for each unit
or

fraction thereof.

subscription

price has not
yet been determined. Plastic Wire,
producer of thermoplastic-covered

the

and

de

Con¬

d'Aviatioii
headquartered in

interest

stock

in

Weser

Flugzeugban of Bremen, Germany.
will

receive

license

a

with funds from internal
sources,
to repay short-term bank
loans,
to finance the company's current
construction program and for in¬

ventories.

quantity production of United's
Pratt and Whitney J-75 jet engine
for the French-built Mirage IV
tactical bomber] This is the first
time

P

a

has

James B. Patke With

Stifel, Nicolaus
(Special to The Financial Chronicle)

ST.

LOUIS,

Mo.

*

James

—

Patke has become associated with

Stifel, Nicolaus & Company, In¬
engine license corporated, 314 North
Broadway*
to a foreign

W jet

&

been

'

given

country.
*

The
Avco

*

*

Lycoming Division of the
Manufacturing

Corporation

of Stratford has been awarded Air

#"

uOlltrOllCf Of

in

by the cosmic radiation. phenom-.J
enon.

In

this

.

of

.

controller

integrated ^'of- ^pelaware,
oh pure metals 'E u n d and
the

case

effects of radiation

Stockholders

,

metal. "In
alloys, disordering of the desired structure

precipitation

a n -

possible that metals undjer stress
might Undergo creep from the
effects of radiation agitated atoms.
Further, the corrosion rate might
be
affected.
Laboratory experi"
ments along these lines are lim¬

i

-Donald- R.

Blot

great

and

York

Will Admit Three

:Jt

:Is

It has been

for

device

^ith Barret, Fitch, North & Co.
incorporated, 1606 Baltimore Aveoi-^q
*
*

^interest

.

and

even

"

meS th°emph"nde: ^ 1° hT

^ '

"preset"

CLEVELAND, Ohio — Curtis^
House &
Co., Union Commerc©
Building, members of the New

gasoline in York
as $1 or

pumping

dollar amounts such

Midwest

and

Stock

Ex¬

changes, on July 1 will admit Ed¬
ward B.Geggus, Franklin H. Floydt
and Richard L. Henn to partner¬

$4. The device was prefected after
a market study revealed that 96%
all gasoline purchases are for
ship in the firm.
full tanks or dollar amounts. The
of

computer

preset

designed

is

so

that the station attendant can push
any

,

-

Patke

New

Cartiss, House Co.

purposes.

start production of a new

J.

-

B.

the

each

Treasurer of the Funds.

.

Joins Barret, Fitch

iof

of

members

The

reported that VeedcrRoot, Inc. of Hartford will soon

.

.

''

area

for

loans, to finance part of the com¬
pany's $800,000 1959 construction
program and for general corporate

n t

largely to radiation of very
v;
particle weight, although we
(Special to The financial chronicle)
are aware that the more
damag...
.
KANSAS CITY, Mo. —Dennis
ing cosmic rafliation will occur Hudson
has
become
associated
from high speed heavy particles,
Another

share

held.

James

$16

E u b 1 l c A ccountant, vwas formerly Assistant

ited
low

38,004
at

share in" the ratio of one ad¬

Ae

•

stock

common

4 and a Midwest
Stock
Exchanges.
Mr.
rights, expire Patke was formerly with Smith,
June 23. Proceeds will be used to Moore & Co. and G. H. Walker
repay in parti outstanding bank & Co.

^
£

subscribe to

to

ditional

J1* tl t u a 1

the usefulness;; of- metals/as; struc-;.Th v estrn e
tural
members." Howevei', Tt
is

of

•fraction

hardening'! can'

None of these effects should affect

right

shares

nounced by
W* Lin t o n
occur if radiation takes place beNels°n, vPreslow
the annealing temperature.' ideht of bothand

Connecticut

of

Water Company have been offered

is in
the -thermal-, properties
'»
will be for some, materials under influence.. Of the
f'j C-v' L'~!
n-"
'
extreme cold to which all. Shaded";
come,
the temperature
Smith, Moore 'Adds
areas are exposed in outer space
excursions, of the outer shell are
(Special to The financial Chronicle)
and the high heat flux encountered
severe
when
the satellite
goes
ST.
LOUIS,
Mo.—Robert
E.
from full sunlight to full Earth during re-entry conditions. Here
has been added* to the
shade. A satisfactory range of in¬ is another aspect of material tech- Smith
strument operating temperatures, nology where -the literature is of staff of Smith, Moore & Co., 509
from 43 to. 104 degrees Fahren¬ little aid.. An example iri point is Olive
Street,
members
of the
heit, was achieved by mounting the fact-that although tungsten is isfew York and Midwest Stock
all
electrical
devices
on
rigid very widely used for high temper¬
Exchanges.
plastics for insulation from the ature applications, very little is
exterior metal and also by selec¬ known
concerning
its
thermal
With J. C. Rahel
tive absorption of; sunlight.
For properties at high temperaltures.
It is well to keep in mind that
this purpose eight equally placed
(Special to The Financial Chronicle)
aluminum oxide stripes of 0.625- we must have useful materials,
OMAHA, Neb.—Jack C. Brisinch width, were flame-sprayed
lengthwise along the outside of
the instrument housing and the mands in terms of stress, weight, Cliff Rahel and Company, Inc.,,
'nose cone.
These white ceramic fatigue resistance and so on, but First National Bank Building,
stripes reflected a higher per¬ also in the fabrication of rocket
centage of the sun's infrared radi¬ systems and their payloads. The
R. S. Dickson Adds
ation than did bare steel under requirement, is for materials susc
(
to the financial chronicle)
the same exposure.
A balanced ceptible to working — that is,
fhwin
t
—
reflectivity helped to prevent al¬ which can be formed into various.
'; /
ii^awin D.
ternate overheating and freezing shapes and welded or otherwise Reaves has joined the
staff of
of electrical elements when the joined to provide pressure type R. S. Dickson & Co. Inc., Hood
Explorer satellites were in ex¬ vehicles. We cannot design func- System Bank Building,
posed and shaded'sections of their tional missiles, satellites and space
orbits.
vehicles on the basis of properties
With Mitchum, Jones
'•
The instant concern was to pro¬
of laboratory curiosities. They are
(Special to The Financial Chronicle)
vide a protective shield in which simply not applicable in the major
to install and house the sensors
SAN FRANCISCO, Calif.—
projects which will enagage our,

there
years to

with

Force Air Material Command con¬
be. We are
DlOl
'•
tracts totaling $8,245,000 for the
the gaps by n^eans of
g
*
data
obtained
from
satellites,
DfildWdCfi FlHfOS production of the T53 gas. turbine
engine. The contracts, which cover
space probes and high- sounglingLffT'-*
:
rockets
but
a
great deal more; ^iPHILADELRHIA,. Pa.—'The ap- production of turboprop and heli¬
accurate.:
information r ■$will
be polntment of Donald.. R. -Blot -to copter engines, follow some $11,needed.
How
this
000,000 in contracts received
affects
the.. the _' newly-;. earlier by Lycoming.
materials picture may>e indicated created
post .

mental conditions may

note the first EXPLORER is still
up

d'Etude

SNECMA

per

space team Jan.

statement

covering approximately 40,-

Will be offered to stockholders at

for

w a

I,

in

Last October UAC acquired

43%

a

concepts will be required in the
development of alloys to -cope
with these problem areas.
As a
specific instance, let me cite the

Army's missile-

invested

de Monteurs

(SNECMA),

the

launched by the

UAC has

European aircraft industry*. The
new agreement is with the Societe

Delaware Inl¬
come F u n d

scientific

and

Kenneth Ellis to

of the unit's five pump keys
be assured the nozzle will

Be Slants PartneGr

shut of automatically.
*

#

PHOENIX,

*

Kenneth
of

One

Connecticut's

newest

plants, in operation less than one
year, plans to add 53,000 square

which
capacity.
Officials of Knox Glass Inc. have
warehouse

feet

of

will

double

space

Ariz.—On

July

will become

Ellis

1

power

as" the" radio
space

While

-

to

as

well

Earth communications.
in the Explorer
and the later Pioneer
success




we

move

ahead

for
Overall

-

our

program

supplies

instrumentation

attention ah

The

Reliability

materials

bearing,

problem has a
of course, on the over-

George

D.

Mitchum,

Ladas

is

now

& Templeton,
He was formerly

Jones

Russ Building.

with

with Dean Witter

& Co.

X
a

changes.

warehouse

their Danielson plant re¬
quires the addition and that con¬
struction will get under way in

Now With Walston
(Special to The Financial Chronicle)

gram at

near

A.

partner in William R. Staats &
Co., members of the New York:
and
Pacific
Coast
Stock
Ex¬

indicated that the accelerated pro¬

the

'

future.

The Connecticut

SAN
A.

MATEO, Calif.

Harris

Walston

is

&

now

—

j

Edward

affiliated with

329 South
plant is one of eight operated by Ellsworth Avenue. He was for¬
Knox organization, manufac¬
merly with Merrill Lynch, Pierce^
turers of all types of glass con¬
tainers.
Knox dedicated the $4,- Fenner & Smith, Incorporated.'
Co.,

Inc.,

the

I

„

and their

•

a
10% stock interest in a wires, cables and cord sets, pl^na
leading French jet engine maker;' to use the -proceeds from the sal©
marking the second time in eight of the additional shares, together

working

EXPLORER

Corporation,

J

*

about

than

even

SEC

The

.

which

registration

of five shares

meteoric
bombardment.
I
think it is entirely likely that new

satellites,

the

called

*

the rate of

arid

first of the Free World

been

*

Plastic Wire & Cable Corpora¬
tion of Jewett City has filed a
-

telescopes.

should approach a saturation state
and be comparable
to the cold

earth

has

000,000 eastern Connecticut plant
last September.

"technical forerunner" of satellite

upon

.

it plf

.

;

a

ment
and
industry,
by
raw
material suppliers, processors and
fabricators/"One " might
say
the
challenge is almost as big as space

Problems

s^t difficulty heretofore has
of of problem^ Qnc«nmjpr

the

been

~

materials

the

sent

filling

...

,

materials

New Materials'

source

industries.; Turning to

v,

national program.

that

stringent as the
demands may seem for these sys¬
tems, they do not by any stretch
of the imagination pose the final
requirements we are placing upon
your

man

Jupiter- missiles in the Project
Mercury flight series.
Utilizing
these existing systems enables .us
to test the capsule being developed Tor eventua1 manned orbital
flight. We shall, m the course of the tests, give pne or more of the
Mercury Astronauts a ride m, a
missile. During the comparatively
brief journey in space he will experience weightlessness for a pe-r
nod of about five minutes.
Only
by a logical, sequential approach
can 'we
establish
parameters of
vital importance to more pretentious space flight operations. The
question of suitable materials will
not be resolved overnight, but it
is of utmost significance in the

"

emphasize

carry

„

»

target

a

probe
launched towards the planets. Because it will be fired only once,
the missile must function peror

Space Administration the Army i$ fectly the first time. Because we
preparing several Redstone
ana. are concerned with vehicles mov-

noz¬

(5) 2 Heat

(6)

which

Earth's surface

For the Nahonal Aeronatics and

^ .'V.'-.

r

those

warhead fired towards

bigger orbiters

,

(</''\ !'."

monly used.

different aspect when

a

mto space.

air "bottles,
most com¬

pressure,

on

consider much

and

(1) Parts of valves.
(2) Plumbing and ducting.

Connecticut Brevities

the

.

gineer, include the following:

.

the

program

stagna¬

tion temperatures.
*

<2747)'15

CHAS.W. SCRANTON & CO.
Members New York Stock

CONNECTICUT
SECURITIES

Exchange

New Haven

New

York—REctor 2-9377

Hartford—JAckson

7-2669

Teletype NH 194

Financial Chronicle

The Commercial and

16

.

.

Thursday, June 18, 1959

.

(2748)

compared with $93,100,000 on the

corresponding date in 1958.
Last

Santa

year,

reported

Fe

THE MARKET... AND YOU

earnings of $2.51 a common share

$2.30 a share
year, with the start
the road has had, it is estimated
earnings could approach $2.75 a
share. Santa Fe has been paying
as

Atchison, Topeka & Santa Fe
Atchison, Topeka & Santa Fe
has made a strong earnings start
this

particularly as compared with 1958. For the first four
months, net income amounted to
$18,473,875 equal to 68c a common
share as compared with $12,632,year,

135

or

of

44c

a

1958

like

common

share in the

For

period.

month

the

April alone net income totaled

$6,053,587 against
April of last year.

in

$5,362,850

compared

in

with

1957. This

The

30c

quarterly and last year paid
Crops this year probably will not
reach the totals in the Southwest a year-end extra of 25c. If earn¬
attained in 1958. However, there ings continue their present pace,
it is believed there is a possibility
is a large amount of grain in
of the extra dividend being in¬
storage which probably will be
creased at the end of this year.
moved to market. Revenues from
the movement of grain last year There are outstanding 24,270,600
increased to $58 million from $32 shares of common stock.
million in 1957. This was a large
factor in the strong revenue showing made during the year. De- Dick Adams
spite smaller crops this year,
estimates are that because of the 31
carryover
from last year that

market

stock

able

maintain

to

earnings

during the current recession

Technical Indications

calmed

Favorable

down

considerably this week
after the wide swings both
ways
last week, but the
weight was on the selling side
than

times

more

little

in

the

not

weren't bleak

Celebrates

down.

The road is serving

a

growing
by
the

tions, the new downhill slide

saw turnover dropping sharp¬
unduly ly to below 2!2 million. The
few random breadth of the market nar¬

Pressure wasn't

rowed

revenues

drastically reduced last year to ers of the
$2,400,000 from the 1957 figure of Northwest and
$10,300,000, which aided earnings prides himself
substantially during the period, on being the
This was accomplished by a sharp one who gets
cut in non-productive train-miles down to the
by some 15%. Atchison is followv office every
ing a policy of not trying to dis- morning to
courage passenger
business but make the
rather to increase it on its more o p ening—
profitable
runs.
However,
the which is 6 a.m.
N

elimination of additional unprofit-

Y

e w

o

r

volume of

million shares
last week's wide gyra¬

bit

a

persistently in

addition to add to the conclu¬
sion that it

lack of buying
aggressive selling

was

rather than

that

hobbling the
/

was

*

freight cars amounted to 4.6% of
total ownership, which is considered high for the Santa Fe but
still lower than the industry as a
whole.
Consequently, with revenues
and earnings increasing, it
is anticipated that over the balance
of the year more will be
expended
on
maintenance
of
equipment to
bring
the
total

any means,

a

three

seen on

around to bolster the list.

!

indications

by

From

however.

of buying

way

technical

The

with above

Years of Wedlock heavy except in a
Richard H. Adams of 3.1. Hagen cases such as American Tele¬
again should match 1958 &
Co., American Bank Building, phone which was given to
is good and flexible control over results from this source,
Portland, Oregon, on June 17th,
sliding rather steadily and the
expenses. The road has followed a
In addition to good control over
celebrated his 31st wedding anni¬
shares sold at their poorest
policy of cutting expenditures as expenses, passenger losses have
versary.
gross revenues decline and in- been reduced. The passenger burprice since the stock split of
Dick Adams
creasing
them
when
revenues den which has been increasing in
last month. The easiness car¬
is one of the
rise. In this respect, it might be recent years was substantially reried the stock more than a
noted that on April 1 bad order duced
in 1958. This loss was pioneer trad¬
One of the reasons Atchison has

been

even

STREETS

By WALLACE

generally.
:

"

,

list
•"

" r*

li'i

c

_

*#•

'

;

'*>:-:

'

i;v

t

dozen

points below the high
As has
happened before;
posted when it was first ad¬ the industrial average found
mitted to trading.
''-vav'.support around the 615 area
tr
v
v
y*•:.. •
which could be a good floor
Steels ran out of strength
if it holds on any future test¬
after their flurry last week
ing. The business picture was
'b u t; beyond an occasional
a
good one — industrial pro¬
show of strength in Youngsduction at a peak and most
town Sheet and Lukens, it was
of the business students
' r-'

v

•

•

":v//

■

"

*v

f

■'

•'

-

pro¬

k

quiet affair with the general jecting the continuing re¬
run
of
steel
issues
ent. His loveR,cl,ard H' Adam8
giving
rapid recovery in gross revenues
covery ahead for a year or
ly wife, Grace, deserved a great ground moderately as the
so far this year. While it is not
'
,
more.
Some of the market
directly tied up to the steel inThe road continues ma strong deal of credit for getting him off labor-management discussions students were even
hailing a
on time.
Since his college days/
dustry to the same extent as the financial position. On February
remained stalemated.
continued period of consolida¬
industrial; roads, still a prolonged 28, 1959, cash and cash equiva- Dick has never lost interest in the
territory

as

evidenced

able

runs

,.

.

rr.

time

and branches is antici-

a

at

pres-

,

D.

,

.

„

v

,

.

sports world/ his particular inter¬
tion as a constructive devel¬
Coppers Easy
ests being baseball, football and
opment to lay a solid base for
boxing. If you want to know
a <well diversified while current liabilities were $90,Coppers had to contend
the traditional summer rally.
ng about the averages or with new
traffic
pattern- and
population 700,000. Net working capital on
price easiness for
*
*
tcontinues to grow in its territory, that date totaled $139,400,000 as what the score is, Dick can tell
the metal and reflected it

steel strike probably would alfect
earnings to some extent. However,

amounted

lents

...

...

to

$162,700,000

......

the carrier has

you.;

with

CPU Head Receives Award

.•

.v

•..

.

.

-.

;

....

J

■

dreary price action. Air-

crafts

Joins J. Barth Co.
■

(Special to The Financial Chronicle)

;;

were

prominent

lows list

new

on

on

the'

new
contract
awards
FRANCISCO, Calif.—Kurt with
joined the staff of J; helping individual issues mo¬
& Co., 404 Montgomery St.,

has

Barch

members

of

the

York

New

and

"

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

SAN

FRANCISCO, Calif.—Rob¬

ert S. Viele has become affiliated

with McDonnell &

Building. He

was

the buy¬

that carried the industrial
to

average
even

while

a

peak in May
issues

more

were

mentarily but doing little to declining than advancing, the
hunt for undervalued situa¬
inspire any better feeling to-"
ward the group generally. For tion continued to be an ac¬
the oils it was a continuing tive one and to many the rail¬
case of uncertain price action roads have yet to live up to
with
liquidation, of large their potential from higher
blocks troubling some of the revenues; and aggressive cost

Pacific Coast Stock Exchanges'.

■'

rather selective, like

occasion ing

SAN

Guen

Since the selling has been

;;

Co. * Inc., Russ
individual issues.
formerly with

control.,

William R. Staats & Co.

i

of

Some

the

items

associ¬

;;;

Santa

;

Fe Favored

f

*

In the quality section,
building were
Santa Fe was something of a
(Special to The Financial Chronicle)
t on
the easy side as housing
favorite and, in some quar¬
DENVER, Colo. —Lumir E. starts : dipped
and for ply¬
Beran has been added to the staff
ters, a candidate for a higher
woods
it
was
complicated
of Amos C. Sudler & Co., 818 Sev¬
further by price easiness in yearend dividend / this year
enteenth Street.
Mr. Beran was
since earnings projections in¬
grades used for home
formerly with L. A. Huey Co.
f the
dicate that the regular divi¬
building which gave them an
dend will be covered more
Joins J. H. Ayres
even
rougher time of it,
than twice over. Even on the
(Special to The Financial Chronicle) "7
Georgia Pacific particularly
basis of last year's payout, it
COLORADO SPRINGS, Colo.—
showing on the new lows list

Amos Sudler Adds

ated with home

.

N. K. Crump (left), President of the Canadian Pacific
Railway
Company, receives the Julian C. Smith medal "for achievement in
the development of Canada" from Dr. K. F. Tupper, retiring

of

President

the

Engineering

Institute

of

Canada.

The

medal,

awarded by the Institute

since 1939 to Canadians judged to have
done the most in the past year for the nation's progress, was pre¬
sented to Mr. Crump at the opening dinner of the Institute's
73rd annual meeting at Toronto.

FOR

SALE

COMMERCIAL

&

FINANCIAL

J.

of

r

'

-

.Fail. 1,

:

Available
;
-

l

Write

Edwin L.

or

'From \

1929-Decj

—

•

the

920
;

•

as a

.

*•'

C.

REctor 2-9570

*

■

turn of

*

above-average re¬
5%. A measure of the

an

neglect for this well-known
were also
rail leader is the fact that its
selling pres¬
1959 range has yet to reach
sure which, without any im-1
(Special to The Financial Chronicle)
four full points.
*
ST. PAUL, Minn. —Robert D. portant buying help, became
Grashuis is now affiliated with
something of a steady downLa Hue Investment Co., Pioneer
To some of the traditional¬
drift
although daily losses
Building.
weren't excessive.
ists, the progress of the entire
The

With La Hue Inv. Co.

RED

WING,
has

blue

added

to

chips

under moderate

*

❖

Electronics

Minn.—O. Walter

been

the

and at times

bled but

on

*

were

were

market

uncertain

well

scram¬

the whole showed

depends

on

the rails

getting into gear with the in¬
dustrials,

but

so

far

such

hopes have been short-lived.

little

disposition either to
It hasn't diminished the ardor
tangle with their year's peaks
or the
1959 lows, apart from of the rail followers and the
With Herzfeld & Stern
which guaranteed conservative times-earnings
Herzfeld & Stern, members of Raytheon
the New York Stock Exchange, an appearance on the week's
ratios and high yields, plus
announced that Bernard Krieger list of lows
by one day's dip.
the fact that some are heading
has joined the firm as a registered
The near-frenzied buying of
representative in its new midtown
for record earnings, merely
this group was pretty much
New York City office at 405 Park
indicates that the investor atAvenue*
*•
' -/ u.i
I " - over at least temporarily.: :
Inc., 315 East Avenue.

31, 1957

offers

result.

■

-

staff of L. W. Chamberlain & Co.,

Beek, c/o Chronicle, 25 Park PL, N. Y. 7




-

Co.,

(Special to The Financial Chronicle)

CHRONICLE

immediately in N. Y.
Phone

Ayres* &

East Williamette.

Johnson

V

H.

L. W. Chamberlain Adds

122-Bound Volumes of the

I

Winston A. Young has joined

staff

-

-

1

■-

-

Volume

Number 5856

189

tention hasn't

.

.

.

The Commercial and Financial Chronicle

yet discovered

Second

W. N. Chflia Named

'the carriers.
'

/V" "/•

*

*

.

To Man. FaaJs Bds.

*

benefit from

that

issues

the

BOSTON, Mass. — William H.
Claflin, former Trustee and mem¬

expanded capital

ber

former

have

yet

to

com¬

emerge

Soledad

is

Treasurer

Harvard

College,

member of the advisory

a

ap¬

boards of Massachusetts Investors

year's recession. Only one

Trust and Massachusetts Investors

Growth

hovering around its peak,

Stock

Fund,

it has been

announced.

that

being

which

Machine

Mesta
shown

has

Mr.

superior

a

Claflin

is

a

Director

of

Street

Trust

With

Sugar

Company.

He

is

ASHEVILLE, N. C.

Trustee of the Boston Mu¬

Wait has

bers of the New York

become

—

Gene P.

connected

mem¬

with

with Daniel F. Rice & Co.

With Westheimer Co.

(Special to The Financial Chronicle)

change,

will

offices

open

at

Shearson, HammiU

CHICAGO, 111. —Dominic F.
Ameche, Jr. is now with Shearson, Hammill & Co;, 208 South La
Salle Street.
He was previously

With Goldman, Sachs

Stock Ex¬

(Special to The Financial Chronicle)

2

CHICAGO, 111.—Paul L. Briscoe
is now affiliated with Goldman,
office staff.
The executive and
Sachs & Co., 135 South La Salle
sales
offices will remain at
17 Street.
He
was
formerly with
Wall Street, New York City.
David A.* Noyes & Co.

CHICAGO, 111.—Spero S. Furla

Broadway for the use of general

has become connected with West¬
heimer &

Co., 134 South La Salle
was
formerly with
Irving Weis & Co.
Street.

He

I ability to hold up profits even
'

-

•

"

.

•

through troubled times. Despite its high standing the issue yields 5 % at recent levels
and it has been selling only
around
10-times
anticipated
1959

earnings.
"A Good

:
.

\ -At

least

partment
group

Group"

deanother
to have

statistically,

stores are

that

-

sums'-

.

seems

I turned something of a corner.
of the store

:

As

l

put it, investors are overlook¬

some

analysts

ing the fact that the depart¬
store chains

ment

have

com-

'

•

pleted their adjustment to the
new
pattern of suburban re-

tailing. May Department
Stores, in addition to a yield
approaching 43A%',: is one
j where the major costs of ex.

;

seem to be over so
earnings could begin to

pansion
:

that

;

reflect the additional stores in

1

areas

<

where p o p u 1 a t i o-n
growth has been pronounced.
'

'

•'

.

..

i\i

:[i

i'f

'■

•'

Ferro Corp., important sup¬

plier to the : appliance and
building fields, shows a yield
; about average at 3-plus percent, but its payout has been
'

conservative
•

•

:
.

• -

;

and

market

the

appraisal is still a moderate
10-times earnings. Contributing weight to its profit statements recently have been the
high start-up costs of its diversification into the plasties
field and here most of these
costs

history. For the
the company re¬
earnings more than

are now

first quarter

ported
doubled
:

on

a

15 % increase in

makes

sales :which

the

com-

'

candidate for dividend

pany a
:
!

1'

liberalization

since

indicated

t: earnings for the year* should
cover

the payout some

times

i

over.
❖

*

.

■'

•

;
;

rails

the railroad

•

.

supply companies

lowing even / where, as in
American Brake Shoe, the
profit recovery this year has
been sharp. On a gain of 8%
in sales, the company was able
report net income up 77%.

Its

yield is well into the 4%
has diwhere

bracket. The comoany
versified diligently to

the railroad business is down
almost to

a

third of total sales.

The only question in the way
of
.

•••

themselves,

have had little investment fol-

to

-

the

Like

!

threer

❖

or

a

full

year's results equal to

better the 1956-57 peaks is

whether

or

would be

[The
article
time

an

views
do

not

coincide

"Chronicle."
as

not

those

a

steel strike

extended
expressed
necessarily
with

It

can come

building for

today

or

lustrous Stran-Satin blue, rose, green,

tomorrow—that time when you need a new

your store,

combination. Yes, lasting beauty

manufacturing plant, warehouse or farm.

at

You want your

building to be low cost yet handsome. Quickly

Efficient. Easily maintained. Long lived.
For all of these, select a fine building from the broad line that
has established National Steel, through its Stran-Steel division,
leader in the development
...

of steel buildings.

usually less than 1 per cent of building cost. (For

many

continuing advances that National Steel brings to

American industry
Steel

a

building development—beautiful factory-applied

gray or any

Pre-enginecred buildings in factory-applied colors are typical of
the

National Steel first! Today, through its
Stran-Steel division, National Steel is offering a major new
And now, color

bronze, white,

and extra weather protection

literature, write Stran-Steel Corporation, Detroit 29, Michigan.)

erected yet solidly built.

as a

cost

a

through its six major divisions: Great Lakes

Corporation, Weirton Steel Company, Enamelstrip Cor¬

poration,
Products

color coating in

Hanna Furnace Corporation, National Steel
of course, Stran-Steel Corporation.

The

Company and,

one.

in
at

this

NATIONAL

STEEL CORPORATION, GRANT

BUILDING, PITTSBURGH, PA.

am/

those

of the
presented

They are
of the author only.']




"*

/;

.,y

'v

.

fwi

/

>

■■■■■,■■

'' 'i

*'

17

(Special to The Financial Chronicle)

McCarley & Company, Inc., 35
Page Avenue, members of the
New York
Stock Exchange.

Space

Kidder, Peabody & Co.,

With

McCarley & Co.

(Special to The Financial Chronicle)

of Fine Arts.

To Increase

a

of

(1938-48)
has been

a

seum

of

committee

pointed

pletely from the doldrums of

•

finance

the Rockefeller Foundation and

expenditures by industry

last

the

of

Bank-State

Company, United - Carr Fastener
Corp., United Fruit Company and
also

Similarly

;:

(2749)

"

>

y.

'

..

The Commercial and Financial Chronicle

18

William

will

It

Monongahela.

of

section

A. McDonnell,

President,
banking facility
will be at the corner of 11th and
Main Streets in Monongahela. He

*v Mr. Fowler, Territorial ^repre¬
sentative in Illinois, Indiana, Ken-

News About Banks
consolidations v;
new branches
new officers, etc.

The

announced June 16 by Dr.

Malcolm McNair to
Assistant Vice-Presidents of The
Chase Manhattan Bank, New York
w e re
announced
by
George

in

elected a
and

of

and

Deposit

Safe

Gloucester

Gloucester, Mass.,
and Manchester Trust Company,
Manchester, Mass., merged under
charter
and
title of Gloucester
Trust Company,

Bank.

■'

York it

As¬

Trust

announced by Harold

was

and

Broadway

165

at

and

specializes in import-export
commodity financing.
'•

mon

end

Ex¬

May 29,

July

proposed

vote

to

stock of $100,000; The TownsNational
Bank, Townsend,

and First National Bank in
Pepperell, Pepperell, Mass., with
common
stock
of
$50,000
into

and

at the
close of business June 17 will be
entitled to vote at these meetings.
record

of

The proposal is subject to the ap¬

Tarentum, Pa., with
of

stock

National

into

of

Bank

regulatory
authorities.
The
merged institution will be named
Bank

Trust

York

New

Company.

ville,

title

and

,

' ft

.

East'

O.

Savings

River

York,

Nodyr.e,

June

on

election

New

Bank,

announced the

11

James

of

President,

Landauer

D.

and John A. Coleman as members

the

of

bank.

of

Board

of

Trustees

the

Mr.

ft

ft

'

,

,

tv

ft

..

American

"

value of $12.50 each.

ington, Washington., D. C.

The

City

manager

State

National

Bank

The

of

Assistant

to

Cashiers.

Mr. Schrama

of

years

is

a

bonds

since he

000

in

been

Newark

its

Hanover

Bank

President

and

Clark,

Russell

State

Superintendent

announces

ings

New

and

Bank,

N.

of

York
Banks,

that The Bank for Sav¬

Union

Y.,

Square

withdrew

Savings
from

the

Banking Department their ap¬
plication for approval of a plan
of merger filed April 1.
*

$

*

the

to

bond

bank

the

in

to

the

when he

Orange

the
as

N.

election

a

director.

trustee

of

Y.,

of

has

Mr. Dirkes is also

the

Long

Island

a

City

office.

has

been

pointed Vice-President of Mellon
National

to

an

The

County

Trust

White
Plains,
N.
Y.
public relations and ad¬
vertising
department
to
Viceof

President; Harry Klingler, trust
department, to trust officer and
Assistant Secretary; and Vincent
J. Nielsen of the Bank's Elmsford




under

effected

charter of The Kent National
under

and

the

title.

The

'

: '•

Chicago

Bank,

Carroll

elected

111.,

cago,

He

1956.

and

Pittsburgh,

Denton,
bank.

Mr.

--'i-V
been

had

Dodson

of ;the

Vice-;

a

National1

First

.

"

resident managers of The Bank Of
Nova Scotia banking offices in
each

area,

the

trust

company's
Managing
Director, E. Leslie Hammond, will
provide a full range of corporate
and personal trust services includ¬

ing: executorship and trusteeship
of
wills;
trusteeship of settle¬
ments; and management seryices

with

Chi¬
E.

he

..came

in

1955. 7 .f.

.

Mr.

Schwan,

a

California

with

California

with

since

R.

32 year veteran"
joined the

Bank

bank in 1927, he has

been assigned,
offices and depart¬

Trust

Pa.,

Peterson, President,
the
appointment

nounced

Frank. J.
the

Manaut

bank's

as

future

an¬

of

of

manager

Ala

Moana

latest
the

toward installation

the

of

Ala

step

bank's

in

Moana

Kapiolani

Moana
Mr.

branch

Blvd.

and

Ala

Center area.

Manaut

joined

Bank

of

Hawaii in 1950.
bank's

Manaut

served

relief

as

-branch

for the Oahu branch ad¬
ministration.' In ;June,, 1956, he
appointed

was

manager* of

the

Waipahu
until

branch, serving there
February, 1953, when he was

named

manager

branch.

\

■

of

the

Kaimuki

■

■

He will be associated with
N.

_

The

Sixteen
National

Now With Walston Co.

wel¬

bank's, Quarter

for any purpose by writing checks

and

of

Pittsburgh, Pa.,
into

the

Mellon

Trust
were

Com¬

the bank.

the

fornia,

Frank
wart

E.

*

as

„' V,

Langstrom, Jr. and
have

McFadden

Western

Pennsylvania

Assistant

Ste¬
been

at

the

Bank, McKeesport, Pa., announced

for

the

establishment

of

a

banking office in the New Eagle

ft

'

5

Arthur Fowler has been elected

Vice-President
Bank

in

St.

of

First

Louis,

National

according

to

.

and

Vice-President

bank's

Price,

!<!

affiliated

&

Inc.,

201

Staff

'

as

Keller Adds

Francisco;
appoint¬

A-Ssistant Man¬

International Department;
Appointed
Assistant
Cashiers

Kenneth

ft

J.

become

Co.;

to

(Special to The Financial Chronicle)

"BOSTON,

Mass. — Donald C.
has become connected

Sweeney

with Keller &

Co.# 34 .State Street.

ager,

elected Vice-Presidents of the Na¬

National

San

A.,

Walter Martens

*

.

N.

announced " the

ments of Wilfred C. Andrews, Jiv

against funds made available for

-ft

111. —Lawrence

has

-

with. Walston

McAllister, Chairman of
Board of The Bank of Cali¬

-Calif.,

their personal use.
•'

Stallman

Elliott

closely Continental's inauguration
of a personal check-credit plan,
whereby customers can borrow

employees
Bank

(Special to The Financial Chronicle)

CHICAGO,

South La Salle Street.

announcement followed

tional Bank of Detroit, Mich.

plans

A.

keep pace
for this

need

manager

V-.,/

^

comed

the

growing
type of facility.

President,

pany,

under the direction of

A product of the
training program, he has
received training in the central,
Bank this spring. He. will, assume
.administrative
d u t.i e s
in ..the; savings, paying and receiving, in¬
stallment loan, credit, mortgage
bank's petroleum division.
savings bonds, collection,
Mr. Mears has been assigned to loan,
and operations departments.
Mr.
the real estate loan
departiiient

City Bank of New York prior to
his
association
with
California

Continental Illinois National sistant Cashier in 1943, Assistant
Land,
Senior
Vice-- Bank and Trust Compay, Chicago,' Vice-President in 1952, and Cash¬
in
the
bank's
Eco¬
111., announced it will inaugurate ier of the bank in 1956. He will
nomics
Office.
Mr. Balles will' a
carry
the
title
program of low-cost personal continueA to
of
assume
his
duties
with
Mellon
checking accounts to round out Cashier of the bank.
Bank this summer.
its retail banking facilities.
ft
ft
ft!

James

offices,
by the

managed

sometime in the first part of July,
Mr. Manaut's appointment is the

;;

President

.j';'

National

Trust

new

be

quarters in the Ala Moana Center

of
California
is assigned; to

staff

Bank

...

three

will

three

institutions.

before

announcement

of service with

The promotions of James F. Mc¬

Carthy, iof

was

The

with

British

associated

Bank

Senior Vice-President, " a to numerous
Com¬ Prater,
according' director to replace Charles Roy ments. He became associated with
McEdlowney.
by Frank R.
the cashier's department in 1942
Vice-Chairman
of
the
/
']ft
!•: '
ft
; and was
successively elected As¬
Bank

R.

&

of the
29.
The

as

$20 each.

ap¬

Company,

ff

effective
May

fice.

$200,000

business

W.

D.

lending: activities at the Main Of¬

v

Balles

head

ft

of

Benecke,

Fargo

the

in

Bank

Bank

000, divided into 28,000 shares of
common stock of the par value of

was

Century Club last evening. Frank
Denton,
Vice-Chairman
of
Mellon Bank, presented gold em¬
blems to the new members, each
of whom has completed 25 years

Savings Bank, N. Y.

stock of $400,National

stock

A. Freeman,
and G. W. Post.

had been

Brown

Wells

joining

Garrettsville, O.,

Kent, with capital stock of $560,-

"...

John.J.

announced

Howard J. Dirkes

Kent,

Portage County National Bank of

Airport Office from 1955

transferred

of

consolidation

The Lafayette National Bank of

Brooklyn,

merged,

close

been manager of its

to June of this year

pany,

G.

came

1940 and has

of

the New York Foundling Hospital.

common

Bank

Mr. Blind

First

have

specialist in
in the 10
to the bank

municipal

common

The

and

Garrettsville,

with

and

came

Kent National Bank,

The

coming to the bank in 1950.
Butera

Mr.

v';«v.

ft]

with

Ohio, with

Mr.

'ft"

ft

ment, which is located in Orange.
He has been in the department
since

Herbert

'

'•••'

is manager of

association

branch.
Anticipating the estab¬
Major, Neal T. Moore# M. J. Shevlishment
of
temporary
bank
lin, and William E. Naler.

Bank, Toledo, Ohio.

the
bank's installment credit depart¬

New York Stock Exchange, 1943Telephone Company, and
the American-Broadcasting Com¬
pany, as well as a trustee of the

absorbed

Ohio,

Spitzer-Rorick Trust and Savings

Schrama,

department.

York

Toledo,

pany,

Alfred

of

M.

were,

Clifford, Jr., T, E. Darnell, C/D.
Irwin,
George P.
Kohl, R. F.

Com¬

An¬
thony V. Butera and William A.
motion

has

Director of the New

Trust

Citizens

in

to

branch

Assistant Vice-Presidents named

Newark, N. J., announced the pro¬

Coleman, succeeds the late
Henry P. Bristol.; Mr. .Coleman
was Chairman of the Board of the
a

Ohio

•

.

were

bank.

the

C. Erskine Lesley,

include
The

Scotia

well-known

Brown,

Promoted to the title of

of Wash¬

Bank

of

Com¬

Caribbean

The
BNS
Trust
Company
(Bahamas) was founded in Janu¬
ary,
1958 by the Bank of Nova

Angeles,

Vice-Presidents

cashier

Ltd.,

subsidiary of The Bank of
Scotia, Canada. The trust
Company's main headquarters is
in Nassau, Bahamas.
'
'

four

W.

Scotia Trust

Nova

Nova

Bank" of

Los

have

Main Office, for
holding! companies,; financial
Charles R. Dodson, petroleum di¬
corporations and pension funds.
vision, Sixth and Grand Office,
First
Canadian
bank
in
the
James B. Mears, real estate loan
Caribbean, the BNS is extending
department, and C. F. Schwan, its trust services

Washington, D. C., ab¬

Company,

(Bahamas)

President- of

King,
Bank,

Robert

Trust

and

Security

of

pany

which
L.

.offices;

Trust

under the

bank

First r National

Elected

^

company

Bank
■

rectors.

f

ft

ft

national

ot

Trust

Jamaica, Trini¬
dad, Tobago and Barbados by the

Vice-Presidents',
three
branch managers, and nine Assist¬
ant Vice-Presidents, following the
June meeting; of the board of di¬
of

Fidelity-IJaltimore National Bank.

sorbed

tired from the Board.

He is

as Manager1 of
Foreign Collec¬

been registered in

Wadesboro,

of

Calif., has announced the election

Fidelity-Baltimore
Bank,
Baltimore, Md.,

Lowell, with capital stock of
$1,651,250,
divided into 132,100
shares of common stock of the par

municipal

1947.

Bank

/

Frank

merged under charter and title of

of

Landauer, will succeed
Mr. Douglas Gibbons, recently re¬
Mr.

-

California

Union

The

of

Md. and

National

title of Union National Bank

Blind

George

years

appoint¬

departments.

value $100.)

Kerrville.

proval of two-thirds of the share¬
of both banks and also
of

par

a

into. title

$300,000,

holders

Chemical

22

his

?

Alison Bank and Trust Company,

/

Pikesville-Peoples Bank, Pikes-

of Union National Bank of Lowell,
the Lowell, Mass., with common stock
insti¬ of $1,320,000, under the charter

tutions.

Shareholders

j

upon

those

of

merger

\

capital stock of $2,850,000, divided
into
285,000 shares of the par
value of $10 each.

meetings

special

for

8

shareholders

%

,

National Bank of Pittsburgh, with

000;

change Bank, New York and The
New
York
Trust
Company,
set

'

Union

Mass., with common stock of $75,-

Directors of Chemical Corn

.'l'v#

!:

-

charter

merger

ft

*

*

The

Pittsburgh, Pittsburgh, Pa., with
common stock of $2,850,000.
The
merger
was
effected under the

of The First National
of Ayer, Ayer, Mass., with com¬
the

'

The

of the close of business

as

1

'

common

certificates was issued
and making effective,

approving

The

Company.

in Tarentuiii,

Company.

Merger

Helm, Chairman. Mr.
Cox
joined Chemical in 1941. He is
jcvith
the
Bank's
International

H.

"Division

serving

was

for

of

its

certificate was issued Wadesboro, N. C. ;
and making effective,
as of the close of business May 29,
First State Bank of Kerrville,
the merger of First National Bank
Kerrville, Texas, has converted

New

Bank,

Exchange

of

-

•'

Merger

Deposit and Trust Company;
A branch was established in the
former
location
of
Manchester

Vice-President;;'has been
a Vice-President of Chem¬

Corn

ical

Bank

increased

approving

Safe

elected

National
Tenn.,

The Easton. Wadesboro, N. C., Bank of Anson,
National Bank and its branches
Ansonville, / N. C. and -Bank of
and branches of The Easton Trust
Peachland, Peac h land,:N.. C.,
Company
will be operated
as merged
under - charter
of; .The
branches by the continuing bank. Bank of Wadesboro and new title

ft

ft

Trust

Easton

each.
ft

New York it was an¬
nounced by Horace C. Flanigan,
Chairman of the Board of the

George W. Cox, Jr., former

*

tion

former main office of

stock of the par value

common

of $25

Company,

sistant

Broadway

Nashville,

office trans¬ shares,
ferred to former location of The

$1,~
450,000 divided into 58,000 shares

Advisory
Manufacturers
Trust

of

Board

Shore

Department

Mortgage

time

the

the Domestic and
'»•

.

Company, with head

Quincy, with capital stock of

Estate

Real

the

of

and

New York

of the Greater

trustee

Savings Bank, has been
member

ment

1952.

California

of

at

tle, Wash.;

the

South

President

in

■

Monongahela and the sixth in
Washington County.
Western Pennsylvania National

of
of

and title
National Bank

charter

under

ft

Mullen,

and

•

named Assistant Treasurers.

Prank

Bank

Assistant

.

department were those
of James H. Carey, John W. Field
and Edward C. Haynes, who were
ft

Assistant

and

1950

Kennewick First National Bank,
common capital stock ;frora $750,^
Kennewick, Wash., with common
000 to $1,000,000 by a stock divi¬
has been with announced plans for the 18 office
dend, effective June 5. (Nutnberv capital stoclc of $200,G09 has gone
The County Trust Company since
several months ago. Number 18 of shaies^ outstanding +^ 40,000 into voluntary liquidation by a
1950.
will be the area's first Drive-Thru
of
its ; shareholders
shares, par value $25.)
^ *•*< - resolution.
ft
ft
ft
Bank.
dated- May 29, effective May 29.
^
t Mr.
L. E. Babcock,/ whose ad¬
South Shore National Bank of
The common capital stock of
The
Easton
Trust
Company,
dress is P. O. Box 616, 'Kenne¬
Quincy, Quincy, Mass., with com¬
Third National Bank in Nashville,
Easton, Pa., and The Easton Na¬
mon stock of $1,250,000; and Ran¬
wick, Wash., was appointed to act
was
increased ' from $4,tional Bank, Easton, Pa., consoli¬ Tenn.,
as
dolph Trust Company, Randolph,
liquidating agent.;. The liqui¬
dated under charter of The Easton 000,000 to "$5,000,000 by a stock
Mass.,
with
common
stock of
dating
bank
was
absorbed5 by
National
Bank
and
new
title dividend, effective June 4. (Num¬ Seattle-First National Bank^ Seat¬
$200,000 merged, effective May 29.
ber of shares outstanding—50,009
The
consolidation
was
effected Easton National Bank and Trust

the same

ft

Gon-

McCarthy

Mr.

ization.

official appointments

in

-

Vice-President

in

Hughes, Chairman.

E.

Champion, President.
Both are
former' Assistant Treasurers in the
United
States
department,
the
Bank's national territorial organ¬
Other

Cashier

Comptroller of the Currency. It
will be the bank's second office

Joseph

Mr.

named

He ..was

1924.

operation by August 35. - ' ;
Approval for the New Eagle Of¬
fice
has
been
granted
by the

office to Assistant Treasurer were

E.

Harry

of

promotions

Ekblom and

Manuel

tucky and sfateg in the southeast¬ service, is in charge of the bank's
sections of the country, has- Machine5- Accounting operation. <1
Mr. L. E. Babcock, whose adbeen
with ?: First-; National , since

be in

CAPITALIZATIONS

James

>,

office;

ern

probably will:

said dhe new office

Bankers

and

revised

Cancelliere,

A.

said that the new

^

v

San Leandro office; and
D. Roulo, San Jose office!.
Andrews, who has 24 years

salves,

of the Board.

M.

.

Thursday, June 18, 1959

.

.

Oakland

Chairman

be WPNB's 19th office.

;

.

(2750)

rence

A.

H.

Harry
H.

Tebbetts.
New

Cashiers

head

Smith
-

were

and

Law¬
Edward L.:
-

office

Allyn

C.

'With Schirmer, Atherton
(Special to The Financial Chronicle)

William

Putnam,

-

branch
are

office

Linhares,

-

-■

-

•

Assistant

Browne,

BOSTON,
Holden
Atherton

is
-

Mass!:— Clayton I,
with' Schirmer,
-Co.,
50
Congress

now

&

Street, members of the New Yotk
and

Boston

Stock

Exchanges.

Volume

189

Number 5856

.

.

The Commercial and Financial Chronicle

.

(2751)

covered

Public

To Invest

Utility Securities

Not to Invest

or

Dilemmatic problems

Peoples Gas Light & Coke Company

Retail customers contribute about
57%
interruptible 7% and wholesale 36%. In¬

L,

.,

,

„

as

too

follows:

.

Natural Gas Pipeline Co. of America
(100%)__„
Texas-Illinois Natural Gas Pipeline Co.
(71%)
Chicago District Pipeline Co. (100%)
Peoples Production Co. (100%)
Texoma Production Co.

--i

I'btal---

...

*i^at-ura^ Gas PiPeline

versus

prematurely; and to borrow

are

15

3

have

executives

their

$104

to

make

a

absurd

to

Would

put

and Chicago District Pipeline operate

a

the

goods

and expand
their plant
n

from its owned reserves in the
Panhandle field.
Texas-Illinois
Natural Gas Pipeline operates a
longer pipeline from the Texas
Gulf Coast.
The combined
capacity of the two lines is over a
billion cf a day. has

exploration

and

production

interests

through its investments in Tcxoma Production
Company and Peo¬
ples Production Company. However, both these companies were
in the red last year and their
operations are

largely in the develop¬
The company also operates, through a
subsidiary, the
Herscher Dome project in Illinois
which has substantial storage
capacity, although it has not. proven entirely successful because of
ment

stage..

leakage.

Peoples Gas is developing additional storage facilities in

the Mt. Simon formation at
Herscher and last year
lion on development work.

spent $2.5 mil¬

The postwar growth of
Peoples Gas has been stimulated by
space-heating, with conversion from oil heating to gas by domestic
While total customers increased
during the past decade
only from 919,000 to 084,000, the number with
space-heating in¬
creased from. 52,000 to 291,00(1 Last
year the company reactivated

customers.

its expansion program with the FPC
put of 185 million cf of gas per day.

involving

an

increase in out¬

Following authorization, con¬
struction of the facilities was
completed in about three months and
deliveries of the additional
gas began Dec. 20, 1958. The company
was thus enabled to add
44,000 heating customers last year, a rec¬
now

supplying gas heating service to over 53%
of the individually heated
dwelling units in Chicago, but 100,000
customers are still on the
waiting lists for gas heat (57,000 are
individually heated dwelling units and the remainder multiple
dwelling units and commercial and industrial establishments). Gas
is competitive with other fuels with the
exception of stoker-fired
coal; the cost of "heating a representative centrally heated single

family dwelling in^Chicago is estimated

as

follows:

Gas—A

$177-

No. 2 Fuel Oil

Stoker-fired Coal

163

Heat Pump
Electric Resistance Heating
1

214

334

The amount of

gas

669

.

'

70%- in-the

consumed for other

past decade.

:

It appears unlikely that substantial additional gas can be ob¬
tained in time for the next heating
season, but since the project
Of Midwestern Pipeline (sponsored

w,

0

long

as

as

e

by
their

using

hew

by Tennessee Gas) to build a
the FPC, future availability of this
Peoples Gas to add 30,000 additional

line Has been approved by

supply

may

permit
space-heating customers during 1959, according to Chairman Bjork.
Major pipeline systems are having difficulties with keeping
rates in line with

increasing field prices of gas, and Peoples Gas is
However, Peoples has made considerable progress

exception.
clearing up system rate problems. To remove uncertainties re¬
garding past and future rate levels and to clear the way for pend¬
ing financing and construction programs, Natural Gas Pipeline and

no

in

Texas-Illinois last: year negotiated agreements with customers cov¬
ering pending rate issues for all periods prior to May, 1958, and
the resulting refund settlements (described in detail in the annual
report) were approved by the FPC. The basis of settlement was
cost of service as actually incurred,
including a 6% raie of return
on depreciated original
cost, averaged for the periods. The two
pipe lines then negotiated new rate increases totaling $3,225,000
per annum; and on Dec. 20th, Natural Gas Pipeline put in effect a

further rate increase of

nearly $5,000,000, principally to reflect the

additional-investment and operating costs
relating to its 185 million
cf per day expansion, and to provide a
6V4% rate of return. These
three 1953 increases will be subject to FPC review and

possible
Peoples Gas also received from the Illinois Commission
during 1958-9 rate increases aggregating $7,500,000, reflecting an

refund.

allowed rate of return of 5.85%.
In October last year Peoples Gas sold

holders, under rights at $41
is foreseen in the

near

a

share.

447,000 shares to stock¬

No further equity financing*

future.

Aided by rate increases and larger sales
(reflecting in part
cold weather during the recent heating
season) the company earned
$3.89 in the 12 months ended March

31, compared with $3.02 in the
previous 12 months; for the first quarter earnings were $2.19 vs.
$1.51. The cold weather may have accounted for some 150 to 180
per share.
It appears likely that earnings for the calendar 1959
may show some further increase over the March figure.
At the current price around 56
(range this year 59 Y2-49%) the
stock yields 3.6% based on the
$2 dividend, and sells at only about
14.4 times earnings. The present low

payout is doubtless
in the relatively low
price-earnings ratio.




a

on

of

June 12 at

Country

New

Y.

Club

annual meet--

officers

Club,*
elected

were:

imagine that

factor

loss

of

up a

any firm
plant and keep it

Should this be done,
interest would offset,

Coffin & Burr, Incorporated.
Treasurer: Eugene L. De Stae-

,

existing plant
to

the utmost

limit

its

of

capacity. Even
if it

were

safe

assume

to

that

demand

of decisive

Einzig

of

decision

the

during the next few
few

next

would

be

the

ever

easy.

answer

may

simple: since the chances are
that in a few years' time the cost
of building and equipping a new
plant will be much higher, the
seem

it is

done

the better.

in

reality the problem is
extreme complexity, with
arguments on both sides.
There

can

But

many

be little doubt about

only two things which
considered

be

a

well

result of

new

a

inventions.

risk which few firms

afford to take.

could

That is

inventions

extensive

have

Even if

re¬

resulted

modernization

in

and

automation of the works, there is

always a possibility of further
technological progress. No tech¬
nological expert can ever claim

be

abso¬

death and

infla¬

for certain that the last word has

opin¬
ions on the prospects of almost
continuous rising costs in general
and'of the cost of building and
equipping factories in particular.
Indeed it seems practically certain

Low Net: Robert

Morton &
Low

Krumm, W. H.

Co., Inc.

Gross

for

Guests:

Russell

Ergood, Stroud & Company, In¬
corporated, Philadelphia.
Low

Net

for

Guests:

Freeman

Grant, Grant & Co., Philadelphia.
Winners
ment

in

the

tennis

tourna¬

were:

Victor H.
Zahner, Zahner &
Company, Kansas City, Mo., and
G. Philip Whitman, American Se¬

curities Corporation, New York.
Edwin
J.
Cross, Roosevelt &

Cross,

Inc., New York City, and
Bush, First National City
Bank, New York, were winners
in a play-off.

Rollin

been said in any particular sphere.

may

lutely certain
tion.

There

—

be

can

the latter

to

plant put up today might
become quite obsolete as a

years

cent

prospects of rising costs. In
this life, so full of uncertainties,
are

think, the technical manage¬
are certain to be opposed to
premature capital expenditure, on
the ground that in five or
six

ments

;

:

den, Kean Taylor & Co.

years.

the commercial managements

of .certainly

one

the

there

progress
What¬

were:

,

Low Gross: Edward A. M. Cob-

may

years

none,too

On the face of it the

sooner

which, I think, is
importance is the pos-

sib,Uity,,qf technological

expand in the
course

Golf winners

An argument
Paul

will

will

no

two

increase

to

a

lafger extent than the general
price level. It is a pity that there
is no reliable index showing the
increase in the cost of capital in¬
vestment.
In Britain at any rate
such

have

costs

increased

more

And

the

will

continue

chances
to

are

that

increase

at

a

safely assume that the
a factory in 1965 will
more than the
of the same factory in

can

erection of
cost

great deal

a

erection
1959.

How much more is of course

anybody's guess. It is also reason¬
ably safe to assume that the in¬
terest

charges

on

capital

raised

in 1965 will be higher than those
on

capital

in

the

its

over

rival

which

carried

raised this year. For
the investing

meantime

Kings County Bankers
Elect New Officers

out

ils project prematurely, by being
able to

Edmund W.

Madden, Vice-Pres¬

ident of Manufacturers Trust Co.,

produce at lower current
has been elected President of the
And this may considerably
than
offset the difference Kings County Bankers Associa¬

cost.
more

in the

tion, it has been announced;

capital cost involved.

Other

There

is, moreover, the risk
that, after all, the demand for the

products concerned may not ex¬
pand at all, or not sufficiently.
Consumer requirements and tastes
they arc liable to change in the course

higher rate.
We

The firm which defers its capital

project to the very last moment
stands a good chance of scoring

con¬

than in proportion
to the rise in the cost of living.

siderably

^

new

Bond

its

possibly more than offset, the bler, Winslow, Cohu & Stefsofa.
"
saving effected. If the hew plant
Members of the Board of Gov¬
is employed to some extent from
ernors
(to serve three years):;
the outset and is employed in¬ Alfred
S. Mante, Smith, Bafney
creasingly as time goes on then & Co. and Craig de V.
Simpson,
the comparison of loss of interest Bankers Trust
Company; (to serve
with saving becomes a matter of
two years): George W. Hall, Wm.
involved arithmetics, the answer E. Pollock &
Co., Inc.
;
depending on the extent of the
The Field Day, which was the
initial use of the new factory and 26th annual
outing of the Club,
on
the rate at which its use in¬ was attended
by 312 members and
creases.
99 guests.

r

prac-

ticab 1

that

uses than heating is
Ninety per cent of new ranges
purchased are gas, and more than three-quarters of the single and two-family dwellings in the
city have automatic gas water
heaters. Gas clothes dryers outsell electric
competitors by a wide
margin, and the use of gas for incineration and for year-round
air-conditioning service are being developed.

about

o

defer this

ord number.

Peoples Gas is

held

Westchester

Rye, N.

and

whether to

also

the

and invest in equities

money

Municipal

President: E. Barron Rockwell,
Halsey, Stuart & Co., Inc.
Vice-President: R. Geofge Levery difficult decision — whether idle for years in order to save the
Vind, Blyth & Co., Inc.
to anticipate the expansion of the increased cost of its erection and
Secretary: Charles L. Skinner,
demand for
trial

5

1,216-mile .dual network of pipelines from Texas and
Oklahoma
Chicago; the former produces about 35% of its gas needs

Gas

The

New York

ing and Field Day

hedge until investment time.

a

LONDON, Eng.—British indus¬

29

fields to

Peoples

Municipal Bond Club
Election; Outing

British

on

equipment.

:^V *

to whether

Besides the question of future higher costs

as

$52

as

reviewed by

Millions

(100%)

solution,

present idle capacity if a plant were built now is the big
problem of the latter's possible obsolescence when the plant is
called intb operation or consumers' taste may have changed.
Concludes it might be best to not anticipate future capacity

ties in six Midwest States.
of

approximately

now

columnist.

Peoples Gas of Chicago operates an integrated natural
gas
system with annual revenues of over
.$138 million. In addition to
serving the city of Chicago subsidiaries supply
gas to several utili¬

revenues; industrial
vestments
subsidiaries are

confronting British industry
later

capital gains on
By resorting to this
industrial firms could

get the best of both worlds.

it is better to invest

or

the

the equities.

By PAUL EINZIG

By OWEN ELY

by

19

First

officers

elected*

were:

Vice-President, Joseph Press,

Vice-President of the Bensonhurst
National Bank; Second Vice-Pres¬

ident, John Bates, Assistant VicePresident,
First • National
City
Bank; Secretary and Treasurer,
of years.
To have to re-tool the Alfred M.
Olsen, Cashier, La¬
factory erected prematurely
in fayette National Bank.

anticipation of continued demand
Messrs. Bates and Madden and
for the same product would in¬ Leonard
O'Brien
Were
elected
volve wasteful expenditure.
In¬ members of the Association's Ex¬
deed
in
given situations it is ecutive Committee.
hardly feasibly
at all, if the
change in demand is such as to
call for totally different products.
Loeb, Rhoades Branch
-

Taking all arguments into con¬
sideration, the answer to the ques¬
tion

whether
in

later

cases

to invest now or
where immediate

Office in Houston
HOUSTON, Texas — Carl M.
Loeb, Rhoades & Co., members of
the New York Stock Exchange,
have opened a branch office in the

public will have become increas¬ investment
expenditure
is
op¬
ingly inflation-conscious and will tional must be to defer the opera¬
First City National Bank Building
expect to be compensated for the tion as long as possible. Admit¬
under the management of Gene
decline of the purchasing power
tedly, it must be exasperating for
M.
Woodfin.
Mr.
Woodfin re¬
of fixed interest-bearing securi¬
executives to watch the costs of
cently became a partner in the
ties. Indeed the chances are that
capital investment operations rise,
by then most capital schemes will knowing for certain that the work firm.
have to be financed through the will have to be carried out sooner
issue
of additional equities,
or or later.
Fortunately, there is a
Di Roma, Alexik Opens
debentures carrying an option for
solution to this problem:
(Special to Tire Financial Chronicle)
equities, which means that exist¬
Firms
could, if they wished,
SPRINGFIELD,- Ma ss.—Di
ing
stockholders
will have
to
hedge against the increased cost Roma, Alexik & Co, has been
share the firm's profits with the
of
capital investment. All that formed with offices at 1387 Main
newcomers—a very costly method
they would have to do is to bor¬ Street to engage in a securities
of financing from their point of
row the money now and invest it business.
Partners are Agostino
view.
in safe equities which are bound Di
Roma,
Jr. and Edward F.
On the other hand, if the fac¬
to benefit in the long run by the Alexik. Both were formerly with
tory is erected before it is really rise in prices. Quite possibly the
Jay C. Roberts & Co., of which
necessary it would have to work
present prices of equities in Wall Mr. Di Roma was sales manager.
well below its full capacity for
/

-

a

number of years,

pending the ex¬
pansion of demand for its output.

Street, and perhaps even in Lon¬

That may mean higher overhead

may

charges

terms

would

terest

per

unit

certainly
on

invested.

of

mean

the capital
It

output.

would

It

loss of in¬

don, are too high, and a setback

be overdue.
of,

say,

six

But thinking in
years,

to assume that the level of

prematurely prices will be higher. As
of

course

be

it is safe

the

increase

in

costs

a

equity

result,

would

be

Zuckerman, Smith Partner
On

June

18 Zuckerman, Smith
Broadway, New York
City, members of the New York
Stock Exchange, will admit Rae
&

Co.,

S.

Goldsmith

ship.

61

fcrlimited

partner¬

20

The Commercial and Financial Chronicle

(2752)

it

Continued from first page

when the

was

Republican party took

over

i

to

Calling
When the Japanese

of the marketable

10%

on

or

was

of

.

the

j

debt in the hands of either the Federal Reserve banks

or

the commercial banks.

after

the

At the

beginning of World War II loans to private
borrowers at commercial banks about equaled holdings of
governments; at the end of the conflict these banks had
over $.90 billion in
governments and a little over $26 bil¬
lion in ordinary loans to business and individuals. Even
at the end of 1952 these institutions held over $63 billion
in governments to something less than $76 billion in loans.
As to the Federal Reserve system, it had next to nothing
In the way of accommodation to private enterprise at the
end of 1941, and only about a quarter of a billion at the

from first

of affluence is exposure to

end of

1945.

Truman's

Its

second

discounts

and

advances

administration

at

the

end

of

to eke out

a

bare living, ad-

stock

of

capital

are

as

The full economic effects of all this

can

not, of

this
little

would

fantastically high.

as

type

of

threat

from natural

In

economy,
there is
of instability except

A drought or
good season may
relative
poverty or
causes.

unusually

certain key
government
obligations Chiefly—we had almost said wholly—what is
known as money
supply — that is the sum of demand
deposits and currency outside banks — rose from about
$48.6 billion at the time of Pearl Harbor to $102.2 billion
Can increase of 110%) by the time
Japan had thrown in
the sponge.

It continued to rise throughout the rest of
President Truman's terms of
office, and by the time he
retired to private life, it had reached the
staggering total
of $129 billion, an increase of
165% from 1941. Mean¬
while, Gross National Product in "constant 1954 dollars"
rose

only 32 %; from $238 billion in 1941 to $314 billion in
1945—and the increase, of
course, was chiefly in things
never

reached the market

to

absorb the additional

Stocks of money. As a matter of
fact, GNP reached only
about $354 billion (1954
dollars) in 1952, or 49%> up from
iy41.

\

■■

';V■''■

resultwas

inevitable
more
dollars chasing
goods. Prices—certainly price indexes—during the
war had little real
meaning as is well known. During the
first postwar
year wholesale prices
averaged nearly 79%;
?^7*49 average, and by the time President Truman
oltice, they had reached about 109.6% of that average.
WyP&ve was 56.8% . What used to be called 4;he
co_sJ of living index (now consumer price index) rose from
—

rru

little less than 63% of the 1947-49 base in
1941 to

some¬

thing over 83%. in 1946, and to 114.1% in 1952. When
any member of the New Deal-Fair Deal
party feels the

inclination to make any boasts about the
fiscal and finan¬
cial accomplishments or about the
rate of interest
able to

they

operate with, let them take

a

look

at

the

effectively.

today? A little better, per¬
haps, but in most respects at least essentially the same as




But

is

everyone

always
of

range

The greater the accumulation of
wealth

the

bilitieq

greater

for

are

the

a

problem.

Re¬

As

loans.

the banking system,'

on

banks have been accom-t

modating

growing

a

of'

volume

borrowers have sought

accommodation, banks have raised
tteir.pn.ne rate from 4.to i¥z%.
cj,arge top-quality'customers on'

Sf * customers on

f

in

a

of the free world. This has

.T

been

%

More recently, the discount rate,

*

period of great economic
owth, very active
edit, further mor

the

nossi-

sh"f ts

preferences

hi

% tlie Federal Re^rve Banks has.
been raised * from o to a it fa.

-the

discount rate is the interest rate

among

attitudes

toward

saving

and

of

undermines

financial

haps

on

the

<?nivpnev

institutions,

or,

per-

occasions, simply
a point where

some

from the arrival at
even

high rate of technical in-

a

novation

to

fails

induce

•

,*=

Tf

ib

nut

eiinnriei-no

tho4

■

and Canada.
V

_

.

•

..

*%* United
the

#f
States, ?the

ty?#

We

ress.

can

for

fluctuations
goal

of

and
stable

time, however, we must recognize that it is
highly unlikely that we shall ever

Government securities of long- prosperity and the potential threat,
0f inflationary boom, the Federal
?aiY outstanding Aaa corporate Reserve should not be in the posiionds, and

average

over

5%

on

in our

offered

~

necessarily have to be
to
investors
at
higher

undue ex-

Hence, the appropriate discount
rate under present circumstances

is

their

recent

one

that

does

not

encourage

upward member bank borrowing and is

movement,-interest rates in the generally above current pates on.

f^.mng-i^pCmnvementst^nee0lSt
11 is Sometimes asserted that .the
SjftZ hS
the
Federal Reserve. System .should,
SU!nnier

hove

been

within

feSfj L,pf if
durins

h

the

Anhsmntlallv
most

of

the

x

ways,

-

measures

of

economic

1-

•

step in and halt the upward

trend;

f/ifof Interest rates resulting from

economy ex-

themselves in various

broad

tion of encouraging an

outstanding Baa corporate bonds, pansion of bank credit and money.,

historical viewpoint, the present
level of rates can hardly be reand we attempt to gauge them by garded l as
"out of line" for a
various statistical measures. If we period
of wide prosperity and
look at the movements in any of growth. : ''
the

und money, bascu^largeiy^

on

JW P°jnt reached "shortly;.the last four months, an annua*
after the end of the war. Yields rate of growth of about 5%. In
"ow range from 4 to 4.2 A on U. S.the face of developing high-level,

lower than during most or tne
nineteenth
century.
From an

.

Fluctuations

For some months, we have been

about two. percentage.points since creased by more than $2 billion m

same

achieve 1
perfection

press

-

rh'anees United States are stiU at levels short-term market obligations,
comparable with those prevailing such as bills.
A-.■;

and should work to

the

ExDansioll

Opposes Undue urettH expansion

eMnomienroe-

our

these

reduce

"

had and

ahvavs will have

paeiTof

.

dit

struments... Yields on long-term.—demand deposits at banks plus,
securities have generally risen by .currency in circulatiw^has m-

rates1
DesPfte

the

•

r

borrowed reserve funds. The.
and maturities of debt in- seasonally adjusted nroney supply,

rla^le,t(?uvC0U,nte:balanCe *3?rfeC
icv theUwWe1 sh&tQ' th'^ran

k

money.

rise credit

New issues

X think

,»

having rapid expansto of bank:

.

in interest rates has affected all

surprising mat, in a
free and wealthy economy, we are

pl?ie"V^^wayshave

-—- —

called high-powered
is high-powered bc~»
cause it is credited directly to the,
reserve
account
& member
bank, and, unless used to finance
a payment of currency into public
circulation or an outflow of gola
or some other development which,
drains the member bank reserve
base, it forms the basis for a multipleexpansion of bank credit and

lat|r than in the United States

.

and medium-term, over 4*2% on

invest

merit decisions adequate to sustain
4
capital expansion.
it

per-

&Y -is often
money.
It

the

investment, from over-speculation
which

muugn

abating, inflationary presThroughout
the
period,
interest rate levels in other in-'
dustrial countries have been
higher than in the United States,
This past year's rise in interest
rate levels here,
accompanying
economic recovery, has been in
contrast to some decline in interest
rate
levels
in
Western
Eu ropean, countries, -where a
modest recession came somewhat

•

The

wide range of expenditure oppor
tunities open to them, from chang-

ing

and continuing,

sures.

fluctuation

economic

growth. At the

fewer

record. That should quiet them
quite
And what is the situation

plenty.

fully employed and the

strive

The Inevitable Result

The

produce

people's
course,

be outlined in the
space available here, but
facts can be. As a result of bank
purchase of

and

haps

tiiiu

we

These may stem from

money.

pressing

'shown

sion,

regard

were

printing

financial

cently credit demands have been'

systems

have

iciiu-

at interest rates which

an

evident

of all kinds does create a'

after World War

does take place, is effected

wfihwing

ing

—the modern counterpart of

is

.

,

economic fluctuation will tend to
be fairly small.

It

a larger share1
product for their pur¬

of strong demands'
the credit markets from bor-.

difficult

key
countries
II, interest rates
rising
trend
throughout the industrial nations
tary

In

only about $156
enough from these facts that the
Federal Government managed to finance the war and to
carry itself along for a good many years thereafter at very
low rates of interest by the
simple though most regrettable
expedient of placing its obligations in tne banking system
against deposits created for the purpose of carrying them
million.

free

they will have to pay for
it.
- •
' !

poses,

Since the stabilization of mone-

In periods of boom and

periods of recession.

to

a

matter how affluent,,
that, when borrowers

of the total

torn of broad prosperity and rapid
economic growth.
'
'

poor

ditions

In

interest.

follows

it

on

economy,
where
everyone must work as hard as he
can

ref

attempt to attract

page

instability in the pace of general
activity and also in interest rates

very

attract

to

economy, no

Rate Policy Is Dang err as

a

efforts

of

ment

An Unrealistic Interest

in

}

.

away

rowers

rise

are

•

•

The presence

Continued

which

taxes

-

-

from current con¬
sumption in return for' the pay¬

sources

doing

quence

that

fact

•

.

represent

New

replaced with government bonds?
Obviously any attempt to have the banks finance the
Treasury without reducing their loans to business would
be to repeat the gross financial errors of wartime.

decline

were

followers

per-,

Aggressive demands for financ¬
ing, which, as I have said, are
characteristic of prosperous times,

report nearly $750 million in

Would the

of

cause

higher.

and individuals

ness

of the marketable

public issues of the Treasury, while the commercial banks "
were
carrying 43 %'—making approximately half of this

a

. -

and they are
banks now "hold

now

the

look at

long-term

in

rates

we

must bear in mind
that
net
yields after taxes are
lower today than a comparison of,
market rates would suggest, be-,

other differences too,

rate

When

recap¬

of

we

was

Federal Reserve banks held about 17%

that

.'

,

share

substantial

a

tax,

income

spective,

Deal financial ideas have these accommodations to busi¬

was

12% of this debt, by then enormously en¬
held by the Federal Reserve banks, while
commercial banks had increased their holdings almost as
rapidly as the Treasury was obliged to increase its in¬
debtedness. By the end of Truman's second administration

*

some

lion. The Reserve banks

of the publicly held market¬

over

war

first

are

-discounts and advances.

held by the Federal Reserve banks
and the commercial banks together. Some 5l/2% was in

larged,

the

interest

importance. Commercial
only around 35% of the publicly held marketable debt of
the Treasury, and they have lifted their accommodations
to private business and individuals to more than $101 bil¬

gory.

By the end of

tures

Government,

Federal

the

bonds,

only around $395 billion in 1958. Whole¬

was

little less.

or

There

callable within one year— and that after almost

the hands of the Federal Reserve banks.

On its own taxable

less than 2%.

Federal

prices now stand at just a little short of 120% of the
base, while consumer prices are 114% of that

base

decade of emergency

able Federal debt

The

of the publicly

interest it pays.

mature

Something like half of it was within the one-year
grouping as President Truman's second term drew to an
end. At the end of 1941—again after long years in which
the commercial banks of the country had grown to be first
and foremost investors in Treasury's rather than bankers

14%,

1947-49

publicly held interest bearing

operations attributable to the great
depression and the New Deal. When the Japanese finally
surrendered, about one-third of this debt fell in this cate¬

than

more

net rate of a little

a

through

sale

attacked Pearl Harbor less than

to business—more than 56'V

definitely short-term.

4%, implies for

say,

1954 dollars

the Banks

debt of the United States Government was due to
a

still

of

parties

held marketable national debt; Money supply has passed
the $140 billion mark, while Gross National Product in

out very briefly to make sure that
wish to know the truth may do so easily.

all who

is

debt

Reserve banks still hold

We lay them

see.

:

tional

We See It

As

both

na¬

Thursday, June 18, 1959

,

rate

ket

the reins of

government in 1953. A distressing proportion of the

...

actlve de™?n.ds/®T i°an? £y

~

ply'ng suiflcieat FederaI

form or another to
interest rates from rising.
m one

k

Tkis cannot be done

without pro-

inflation—indeed without
the Federal Reserve
cVgtem jnto an engine of inflation,
'•> *

moting

converting

such

a

.

them with
Consider After-Tax Yield
adopted during and following the
fluctuations in interest rates, the " Iii comparing present rate levels w^r> n "id succeed lor ^ time in
conclusion is inescapable that in- with those of the past periods, one actually pegging interest rates on
terest
rates
tend
generally to of the important* things sometimes Government obligations. But, at
move upward in periods of prosoverlooked is the effect of our the same time it promoted ^ana
perity and downward in times of necessarily high tax structure on facilitated the dangerous
bank
recession
or
arrested
growth, the effective rate of interest. For credit and - monetary expansion
Hence, concerned as we may be example, if/both the borrower and that developed under the harness
about the impact of rising interest lender are subject to the 52% tax of direct price, wage, and material

activity

and

compare

_

rates

debt

on

or

the burden of the public
necessitous borrowers,

on

must recognize that rising interest rates are, in fact, a'symp-

we

controls. The suppressed inflation
that resulted, we are now well
return is a little less than half aware, burst forth eventually m a
of the expressed rate. Thus, a mar- very rapid depreciation of the dolon

corporate profits, the borrow-

,ers' net cost and the lenders' pet.

Volume

lar and

.

.

The Commercial and Financial Chronicle

.

threatened to destroy

even

free

our

5856

Number

189

bank credit,

nor

do they reduce day

the- dollar

the demands of borrowers. If they: international

>

conomy.

(2753)

not

are

fully

offsetting,

the

net

is

the

anchor

financial

of

stability.

That anchor must be solid. Real-

Bank and Insurance Stocks

*

Doubts Pegging Could
This

experience is

the

and

effects

and

widely

It is

Jstiq financial policies of

govern-

»U acutely:thtegV-:ment: are; essential to that end as
J**
toe Publicly-held,well as to the end of a wealthy
debt ; that is outstanding, and and strong domestic economy. At

recent are

very

are

well remembered.

result would be inflationary;

Succeed

21

very

now

By ARTHUR B. WALLACE

available, to provide ,a;t basis for this juncture of world developThis Week
Insurance Stocks
serve
Svsten
could
in fact
ne«
such m°netary inflation. There is ment, the least evidence of an irThe
vicissitudes
of
the
interest"rates on Government ob- 110 maSic formula ,by which we responsible attitude on the part of
fire- itable lines in 1958: fire, inland
ligations under today's conditions caneat^our cake and have it .too. the (United States toward its; ii- tasualty insurance stocks recently marine, auto bodily injury, auto
doubtful whether !'the Federal Re--

—

___

if

even

infla-

the

accepted

we

costs, which would
be
high and would eventually lead to
severe collapse.
It is certain that

Money"..Supply

Decries

Increase

has

learned

from

any

lov.^Tthfe'day^Any attemptlm the o^any^other^obligation^can'^e
part of the Federal Reserve to
2
Lii'
+£
rates today would be shortly tolY mfIatlng the money
neg

lowed

hv

outflow

acceleration

an

of

of

the

supp y*
In

in

sold

u

.

of

in

ment

savings from invest-

bonds

and

fixed

other

interest obligations into stocks and
j
w.,
other equities, and by a mounting
„

of

demands

in

order

for

to

funds

borrowed

equities

speculate in

and to beat the higher prices

iol anttc%atod
;
Harmful
'

and

■

...

Developments

''

*

...

.

,

Those familiar with the investment

will

markets

tably follow

confirm

that

Federal Reserve at-

a

®

this

wun

discus-

ims aiscus-

.like

a

^

^

low

as

as is con-

would

reserves

thrown

into

the

to

have

be

risa ln aur national well being,

As these

reserves

policies can, of
influence interest rates to

course,

ence,

the

on

rate

effectiveness

at

which-the

of

Federal

Reserve

demands for credit to reap specu-

even

the

hold

interest

mately,

heroic

most

if

Reserve

rates

the

is

efforts

reserve ' re-

F
subject

now

to

Ulti-

down.

gold

How to Lower Interest Rate

enhanced

lative profits and to hedge against
future inflation would overwhelm

were

H.

Truman,
Truman,
& Co.. has been an& Co., has been an-

Wasserman
Wasserman

jn

interest

rates

the

expect

even

when

depreciation

they

the

in

value of their dollars to be limited,

This

is

understandable.

Take

for

corporate financial institution subject to a 52%c tax. The
example,
after

a

income

tax

yielding 42/4%
amount

with

to

the

just

from

bond

a

interest would
a
little over 2%

dollar

stable

value,

in

If this potential investor had
son

to

fear that the value

of

the

depreciate even 1%
a year,
his real return would be
very
low.
If the investor had
reason
to expect a price rise of
just over 2% a year, his real return would become negative.
Investors
are
alert
today. to this
way of figuring interest returns,
It might be added that to suggest that holding
interest rates
down by supplying the banking
system with reserves through Federal

Reserve

chases

of

open

market

pur-

Government

securities,
on the one hand, and taking them
away with higher reserve requirement increases, on the other, represents

a

fundamental

misunder-

about

lower

a

rates

is

level

increase

to

flow

"as

addition

to

the

total

are,
no

supply




in
net

of

portion

well

may

remain

in

re-

serves.
serves.

annual report

of Great

thought that 1956 American Insurance Company,
a
fairly
satisfactory one of our larger and better maninvestors, looking for aSed units, state the case: "Our

was

be

many

iiivneu

the Wall Street Club, 40 Wall

in

the

National

mittee

tinued

count what was

considered to

be

of-the

Development ComEleanor Roosevelt

and

the

insurance

declined in price

.We

have

pointed

out

several

Denver.

fol|ow underwriting results, favor-

cancer

fb|® ^
X,win«
mvcsuueni snowings.

The
hospital
accepts
patients free of charge, regardless of the advanced stage of
their disease and for

casualty

^i""1havea
^noPrR°oosev^t tostRut"wn!

continuing high loss trend in the

stocks

bull

faithfully

more

In

in

oYhe?
oiner

mwket^

to meet rising costs of
physical damage repairs and ever
reserves

increasing

awards

for

injuries."

,,

persona!

It then goes

..

.

t

,.

,

underwriting
oun+e(a

for

,

is

loss

these

bv

to say

on

.

ac-

additional

One could go through

reserves.

hie manuals and find

that the well

""waged companies are building

STbt

Ira

the

of

demand

Haupt & Co.

"

CSpecial to The Financial Chronicle)

CHICAGO,

not only relieve immediately Boeckh

some

111.
in.

has

—

Julius

uuAAMo

W.
. t.

associated

become

pressures

sav-

and ™a^e!abLlbonds

effectively

parts of its program
management. The forth-

debt

right

use

as

management

of

is

lower

interest

force

not

essential

an

the

We

Treasury

to comply with arbitrary ceilings
on either the size of the debt or
...

levels

of

industrial

among
more

countries

;n earlier postwar years.

ai

0f

most

with

restrictions
of

movement

interest

closely aligned than

aiignment, together

capital,

This

re-

remov-

among

international

d

lt

Andrew

j.

Arenth, Treas'

With Peter P. McDermott
Charles

Berkeley
Cooke,
Jr.
has become associated with Peter

Ho

Co.,

&

42

circumstances,

is

Diamond, Turk Partner
On

June 5

James

L.

Kirby be-

nf thP

We need to remember that to-

aeain

(Special to The Financial Chronicle)

BOSTON, Mass.—Gordon Smith
an(j Stella E.

affiliated

Smith have become
Keller

with

five

the

ended with 1958
average
combined loss and
expense ratio was the very red
years

flgnAenSf 10.9'.7^' an undei[t
in 195,8 writing
at 94.0%, giving
.

_.

.

•

AND

DENVER, Colo. —John Bennet
is

conducting
from

a

securities

offices

at

495

GRINDLAYS

busi¬
South

WORCESTER,

Mass.

Max

H.

Walston
June 7.

&

Block,

associated with

Co., Inc., passed away

Peter

H. L. Robbins & Co., Inc., 37,
Mechanic Street,
„

n

Form V. S. Wickett Co.
V. S. Wickett & Company, Ine.
jiag ^een formed with offices at 33
YVXlAJl

West 44th

street> New York City

(c/0 jasper Sandler & Lipsay) to
engage

a

officers

are

and

seph

Landis,

securities

businesa.

Beverly Leib, Presiand Dr. Jo¬

Treasurer,

Vice-President

and

Almalgainating National Bank of India Lid.
and Grind lays Bank Ltd.

1958

-Head Office:
26 B1SHOPSGATE,

STREET, S.W.I

ST. JAMES'S SQUARE,
13

COMPARISON

FIRE & CASUALTY

London Branches:

Trustee Depts.:

EARNINGS

LONDON, E.G2

S.W.I

St. James's Sq.; Govt.

Nairobi; Ins. Dept.: 54 Parliament
St.; Travel Dept.: 13 St. James's Sq.; In¬
come
Tax Depts.: 54 Parliament St. &
13 St. James's Sq.
Rd.,

UGANDA, ZANZIBAR A SOMALILAND

Max H. Block

—

Leatoa^a^been added to thext^a

Secretary.

LIMITED

Bankers to the Government in : ADEN, KENYA,

Canosa Court,

!

(Special to The Financial Chroniclb)

dent

54 PARLIAMENT

John Bennet Opens

Brother®

H. L. Robbins Adds

coverage in 1958 turned m a very
heartening showing. Whereas in

13
'

rates in this country must increas-

well

so

iuywx

AmPr

Fv^bante

ican &l0CK ^xcnan&e-

interest
as

do

Two With Keller Bros.

rVi,*

BANK

Un-

domestic conditions,

mi

1

opinion the Securities Co., Inc., Zero Court
pessimism
is
being
somewhat Street. Both were formerly with
over-embhasized. We continue to Jay C. Roberts & Co.
have the mptor vehicle losses, but

NATIONAL

money

pre-

stocks have always recovered
from the bad underwriting yearsr
,
there is no reason
why they

But in this writer's

formerly with Value Line

was

ness

these

bond

Broad-

Fund,

reflects

that

buyers, especially among
holding units.

surance

profit margin in the line of b /<?.
With the line steadily^gaming size
way, New York City, members of in premium writings, tnis snowing
the New York Stock Exchange, is a good offset to the less proiMcDermott

P.

rapidly
cheapest

market

QTVi

the

^np^JNew
S^ ^ JtQ

the

secondary,
iit,]Voc

the fire category, and for the secPresident °ud .(n0t
consecu^YeJ ye*r ™
Mnrrnt F Vi^ariVh about seven or eight, extended

E^

3Gaoe

beins

tributing factor, but of probably
minor influence, is that there has
been enough portfolio shrinkage
to add to the pessimism of the in-

the

on

and most readily
pared to accommodate them.

ance

onerations
in(!Iiranfi0

^

So insurance stock prices are
again substantially off from their <■"
highs of some months back. A con-

Q

markets, which is the financial
counterpart
of progress
toward
sustained growth in output and
trade in the free world generally.
it also signifies a state of affairs
in which capital demands are becoming international in scope and
in • which
they
will
converge
on

me^jf

were

heavily

Lawrence

T'wIl^nn

progress towards a closer relation-

ship

ePP1irifipq

resort

to

the rate of interest it pays.

are now

n

Offkers are

should

to undesirable expedients in order

rates

bustoess

York

New

in

in

part

rates.

International

r:+v

the

public
of any
program to encourage savings and
debt

Pari? A°enue

30

at

shall be able to

better news on the industry must
be forthcoming before we are
justified in accumulating insurance stocks, this department feel*
that this is not the time to jettison
holdings in the industry. Insur-

be

J. W. Boeckh With

uic

w

underwriting
bad, the chances would
against higher insurance
stock
prices. And this is
logical, as, after all, the underwriting end of the business is the
principal part of it, with investsuits

of

way to do this is to reduce
substantially the deficit at which
the fiyvciiuiiuut, » uiiw dung. This
government is operating. 1U1B

as

bad

stocks

times that^price moves of fire-

tant

of

continued

; The institute is being built and
equipped ;at a cost of $1,500,000
at the American Medical Center at

savings or to decrease the
amount of borrowing: One-impor-

ingly reflect world-wide

base

a

loss of,

a

.

real

effects

the credit

which

in

is faced with

Company

opportunities to be ground-floor statutory underwriting figure's
buyers, rushed in and we had our were influenced unfavorably by
first big
0f buying into the substantial increases in loss retail party in honor of Represent gro.up. But underwriting con- serves made during the year, war!atiye James Roosevelt to be held
bad, and the effort to dis-. ranted in our judgment, by the
lIiaL,

interest

of

the

der

on

instances

numerous

Let the
it

invited

changes

standing of how the credit system
functions.
Obviously, if the net
fact, offsetting, they make

in setting up in unperiods larger reserves
than are necessary.- And there are

favorable

aiert

are

rea-

dollar would

forehanded

an

ernment

willing to lend

we hear that March and April of
1959 were bad months in under
1959 were bad months in under-

year,

has

_

.fSSZSLJf. ,u":
their money at low

when these stock companies went

-

the iai2f }hT
that
he

announced

with Ira Haupt & Co., 141 West
eliminated, the System might ac- that are pushing interest rates up Jackson Boulevard. Mr. Boeckh,
quire a large proportion of pub- in credit markets, it will also re- who has been in the investment
licly-held ' Government
debt
of assure savers as, to the future business for many years, has reOver
$200
billion
in this way. value of the money they put in cently been with the Sears Bank
True, the interest rate on Govern- bonds and savings institutions and & Trust Co. Prior thereto he was
hient obligations might be said in thus increase the flow of savings with Daniel F. Rice & Co.
some distorted sense to have been
into interest-bearing obligations.
stabilized by such an operation.
Tke pr0posals before you do not
Cornerstone Planning
Interest rates generally, however,
relate to the levels o£ rates which
,
Planninn Cornorawould spiral upward as they alwiu
ail in the market
but
Cornerstone Planning Corpora
ways have in every major infla- rather to whether or not the
govtion.

ex-

run-

moreover put interest rates where Street, at 4:30 p.m. Monday, June a coming cyclical turn ran up automobile, business. We feel it
'we would whatever our likes ' 29. Mr Roosevelt is Chairman of prices 0f the stocks. Underwriting prudent to establish adequate loss
Federal Reserve

market

inflationary pressures even further,
the rush from money and fixed
obligations into gold and physical
property as well as the mounting

years

the Eleanor into the red. The next year they say, $50,000, and has reserves for
Roosevelt Institute tor Cancer Re- were further in the red, and m that contingency. But if the loss
search under the Chairmanship of 1958 slightly in the black. Now is settled for $40,000, the unused

wT':ululuVuceu

through policies is always subject to the
Federal /Reserve
open
market reaction of borrowers and savers
purchases in the attempt to stem as expressed through the,market,
the upward pressure on interest
rates.

those

slpStent W1*h «i?^ned b?gh \eve}s -Prominent members of the bank°f economic activity, with a steady, mg and business world to a cock-

tempt to peg interest rates. - A banking system can add to the
simply tremendous volume of credit and money supply, y The
bank

Street

of

the casual eye and that is strongly

Committee" .for

high rates.of intefr. stitute.

interest levels be

an,d wIth trheas°nable s£blhty f°r
,value .for.-the dollar. We cannot,

to the Mure

«■■■

£at

with

"Wall

a

in

ning, respectively, at 93.1%; 93.6%;
94.9%. Then they ran into 1.956

sh°uji"°un<?dby ,Sid?.ey .Giazie(',East" wr"!ng
When
eral Reseiwe System ern Regional Director of the In- would

demands from abroad, by further
diversion

Formation

ratios

pense

Research Institute
*

Charles

.

connection

111

to

response

group, the combined loss and

Wall St. Comm. for

number

them, and those who companies, much that doesn't meet
Set rid of them."

tended to relieve;::.. If you really
knows want to encourage
rising interest
effort rates> you have
only to follow the
prescription of those who argue

now

fhJm TUSGd °T ,iUt^tyu 2n P^Perty damage,in a
etc.
to remark that
nobody
But there is,

* *1 tiiKciu,+1 a 1 .^wnrnent issues iWhich. confront it in meet- wants to buy

V

wartime, infla-

tionary experience. It
that inflation follows

the

ut0 lac;e squarely tne. them

J

tionary

PROTECTORATE

Branches in:

KENY^,

TANGANYIKA, ZANZIBAR, UGANDA,
ADEN, SOMALILAND

Bulletin

on

Request

Laird, Bissell & Meeds
Members New York Stock
Members

American

Stock

120 BROADWAY, NEW

INDIA, PAKISTAN, CEYLON, BURMA,

PROTECTORATE,

NORTHERN AND SOUTHFRN

INSURANCE STOCKS

RHODESIA,

Exchange

Exchange

YORK 5, N Y.

Telephone: BArclay 7-3500
Bell Teletype NY

1-1248-49

Specialists in Bank Stocks

1
;

The Commercial and Financial Chronicle

22

Continued

The

ical price and assuming full re¬ such items as ores, basic chemi¬
cals, coal, grains, cotton and to¬
sponsibilities of membership,
The
Common
Market
All of this will take time, as bacco.
there are strongly held views on treaty provides that many of these
both sides.
For example, a few products will, as they have in the
continue to enter the six
months ago a spokesman of the past,

jrom page 6

European Common Market

luck

and

good

they

planning,

cannot be worked out within the

framework of the Common Mar¬

ship

full and equal rights to

are

freer trade.

countries

Britain and the other
been

have

than

more

ket.

to encounter heavy
economic going in the form of a
severe
and
protracted slump,

economy were

economic

European

cooperation

would be likely to succumb to the

heavy weather. That is one im¬
portant reason why it is so vital
we

in the United States pur¬

policies that will stimulate
vigorous economic growth while
preserving stable prices.
sue

as

eventual United States of Europe.
This

is

from

understandable

the

British point of view. It is equally
understandable that the Common
say
that the
trying to negotiate a
strictly commercial deal, in which
they wish to have their cake and
eat it, too.

members

Market

British

are

In

States.

United

terms

of

real

Outsiders

tries

offer

combined

a

market

roughly two-fifths the size of the
By 1975, their

A Larger Bloc?

American market.

purchasing power should be al¬
most as great as ours is now.
In
of which have strong
recent years, total production of
psychological, as well as economic,
roots—it is difficult to say how goods and services in the Common
—many

of great im¬
portance to Europe and the West¬
ern World is the relationship be¬

Market countries has been grow¬

Free

along what lines, a com¬
be worked out. Some
experts see the possibility of ne¬

Europe,
particularly Britain,
Switzerland, and the Scandina¬

gotiating. broad e r multi-lateral
trading
agreements
within the

and

vian countries. So far, negotiations
to link these nations
with the

framework of OEEC or the Gen¬

Market countries added up

eral

Common Market have failed.

The

Trade.

$46 billion in 1958—almost
half of which was intra-European

casualty has been
the proposal for the larger, more
loosely-organized
arrangement

more .-.

tween

the

other

most

Common

and

Market

countries

in

notable

which has

come

to

be known

as

the "Free Trade Area."

soon, or

promise

ing almost twice

can

Or

fast

as

in the

propaganda that we have
ourselves completely out
of world markets, that the dollar
is fast becoming a soft currency,
that we are such a rich nation
the

priced

for

that

trade, imports

exports for the six Comnlon

to well

that

is

in

itself.

The

Market

the

figures indicate that the

going to be a
big market—an expanding market
—and a strong bloc in interna¬
tional trade.

this

ness,

and

an

For

For American busi¬

both
opportunity.
means

the bulk

of

a

challenge

from

affected.
continue to sell

to

drugs

atomic

to

heavy

reactors.

machinery
present,
one signi¬

At

in the hole, and that is

ace

the volume and variety of its ap¬

research

plied

is

which

and

else in the world.

development,
anywhere

Market. Already the total of

mon

U.

S.

rope

private investment in Eu¬
is large—well over $4 billion
than 250% higher than

more

exports to in 1950.
The flow of new capital
Europe, the Common Market is a is accelerating as more and more
plus factor. Over two-thirds of our American
companies
establish
exports to the Continent are made branch plants and subsidiaries on
up
of raw materials and food— the Continent.
our

good

to

say,

reasons

U. S. business
for locating in

Europe. There is the potential for

#p£rralfsts

where else outside the U. S.
there

are

the added

rest

your name on our

:

have for sale

Market

:4:|

little

~NY 1-1920*




countries—not

petitors—but as partners in trade
with the prospect of great mutual
In so doing, we would
recognize that the Europeans have
our equal economic part¬
ners in the Free World.

This,

seems to me,
real significance

it

touches

of the
Market. .This
development is far more than
just
a
commercial venture of
the

on

European Common
new

European
consumers
cars,
appliances and
the other amenities of life. Rather
it is a bold move to unite Western

supplying
with

more

Europe and make it a powerful
partner of the United States in
the fight for freedom.
As such,
the mere existence of the Com¬
mon

Market

is

today

already

symbol of what we have
in the postwar years.
Perhaps it is all too easy
get
we

a

gained
to for¬

overlook exactly what it is
have gained. Twice within this
or

century, we, as a country, have
paid a dear price for not having
unity in Western Europe, for not
having the likes of a- European
Common Market.
I, for one, find
it encouraging to know that if the

nuclear weapons.

I find it also

the

encouraging to see
Market a vital

Common

all

these

and

Finally, I find it most encourag¬
ing to know that, instead of a

to

American busi¬

then,

U.

S.

busi¬

much to gain, and

lose, from the
American

very

Common

companies

should

also

expand,

expand.

because

I

say

there

month

means

Common

that we, as a

Now With S.

Chicago Board of Trade Bldg.
'

HArrison 2-2942

CG 411

Russian

Romanoff

(Special to Tns Financial

Chronicle)

WORCESTER, Mass.—Frank A.

Oftring

Market

has

country, are

He

associated

become

Now

—in the European market, in our
own
home market, and in third
M.

negotiate in reciprocal trade dis¬

vestment

cussions. not with individual

Co.,

tions of Western Europe, but with

SAN

MARINO,

Blalack

Main
with

-

Proprietor

(Special to The Fin incial

markets throughout the world.
It
also means that we shall have to

na¬

formerly

was

Hemphill, Noyes & Co.

going to face greater competition

principal Exchanges

the

with S. Romanoff & Co,, 340

Competition

Certainly the

met

strength.

is

"if" involved—and that is the

first

we

challenge in Berlin.
That chal¬
lenge has grown, but so, with the
unification
of
Europe,
has our

Street.

CHICAGO (4)

x

one

Greater

Co.

NEW YORK (6)

WOrth 4-6000

takes

The

trade policy of the United States,

Members New York Stock Exchange

Broadway

links

operating on the continent will
gain most. But our trade with Eu¬
rope

an

Municipal Bond Department

111

And

the world.

of

balance,
has

should

and other

S. As

Market.

daily airmail offering list

&

-

weak, divided and dependent ally
on the Continent, there is develop¬
ing a strong, united and equal
nessman
put it: "The European partner in the Western alliancemarket was attractive before, but one
who shares with us the criti¬
this Common Market gives it real
cal problems
and challenges of
sex appeal."
our
age. Yes,
11 years ago this
On

buy inquiries

Ira Haupt

know

doing, we take on the European
as cut-throat com¬

so

incentives of

ingredients and adds the big plus
an eventual mass market which,
up until now, has existed only in

ness

© To place

great

our

of

m

us your current

of cutting
competitive, to

remain

to

image of our own political
economic institutions.

with the

the U.

© To show

Challenge

the

right answer to the Com¬
Market's
challenge
is
to

in

Common

you

to

Answer

The

rates and established trading

REVENUE and G. O. BONDS

items

the rest of the world.

relatively low wages, flexible tax

TAX-EXEMPT

on

prosperity

indissolubly linked with that of

is

growth—particularly in the field
consumer goods where Ameri¬
French and Germans are going to
can
mass
production and knowhow can be readily adapted.
To go at it again, this time it will be
on
the economic point, and the
a
considerable
extent, there is
war
will be fought with Volks¬
political and financial stability—
with probably less risk than any¬ wagens and Renaults—not with
of

us

like it or not—

we

future growth and

our

become

Technical prog¬

capital will be moving to Western
Europe to cash in the new oppor¬
tunities opened up by the Com¬

has

call

essential

many

benefits.

unmatched

Needless

Mutkti

U. S. ex¬
importers of
raw
materials.

net

are

And—whether

ductivity,

be

American business has

and

42

We

ports.

lead in pro¬
ho w and mass
production, which still - remains
The U. S. will
those products that are unique in great, and to take the lead in re¬
ducing barriers to trade between
performance, design and cost—
members of the Free World.
By
will

exports

.

These

protective tariffs. Already
this coun¬

4 million jobs in

try are directly tied to

Common

—

O For prompt bids

of high
some

maintain

Of course, not all our manufac¬

turing

.

We invite you to

nothing of the sort.

:
of course,
The sim¬

ple fact is that the United States
can
no
longer afford the luxury

costs

prospect

Common Market is

our

buckle down to the job

rope.

ress in the U. S. should be rapid
trade.
Generally speaking, most
in the coming years, and it will
countries
are
heavy
for European
facilitate
continued
exports
to
exporters of manufactured goods
some modus vivendi in trade rela¬
Europe despite increased compe¬
and heavy importers of raw mate¬
tionships still looks favorable —
tition in certain lines of produc¬
rials.
The six Common Market
if only because the Common Mar¬
tion.
ket is bound to stimulate trade, economies, in fact, are already, as
American Capital
rather than merely, diverting it a group, the world's largest im¬
from one country to another. Such porters of raw materials.
Meanwhile,
more
American

members

But the right answer,
is

turn

the rest of the world.

on

mon

American

some

to

afford

can

we

backs

exports will cease to move to Eu¬

ficant

International

In

over

Tariffs and
there could simply be

Agreement

as

U.S.

This plan
originally proposed by the
British, but was defeated last No¬
vember after long and complex
negotiations. It was suggested as growth will make it possible for
a
supplement to the Common the Common Market countries to
Market, but was regarded by its extend some concessions to out¬
opponents as a,- substitute with siders (as they have already done
in the first round of tariff and
many objections.
The main stumbling block to quota cuts), whether or not they
the Free Trade Area was the fact are prepared to join the club.
that the Common Market is both More important, such growth will
an
economic and political club. make
the
prospect of actually
The price of membership is some joining the Common Market more
loss
of
national
sovereignty, attractive for outside countries
whereas the benefits of member¬ even if this means paying a polit¬
was

higher tariffs and try to become
of a "Fortress America" in
trade.
We could swallow

manufactured

upshot

licked, retreat behind still

sort

goods, how¬
ever—particularly finished chemi¬
cals and machinery — American
exporters
will meet increasing
competition
from
the
Common
Market.
For one thing, American
goods will face a uniform tariff
wall, while internal tariffs in the
Common Market area are being
reduced to zero.
More important,
States?
European producers will have a
Let's start with the size of the large
six-nation
home
market,
Common Market.
Together, the which helps justify the develop¬
six member countries now have a ment of mass, production
tech¬
population approaching 170 mil¬ niques, thereby generating greater
lion—almost equal to that of the efficiency and lower costs.
The

purchasing power, the six coun¬

are

world

the European market expands.

In

admit that

challenge would be to
we

ucts from the U. S. should increase

nomic side, but have

Given these conflicts of interests

The

Another problem

One

perish." His answer was: "On the she have the raw material base to
whole we'd rather perish."
Yet support rapid industrial growth.
most observers believe that some Therefore, exports of these prod¬

willing to cooperate on

comparable to our own.
answer
to
this friendly

ests

financial

the eco¬ arrangement will eventually be
not seen fit worked out between the six na¬
to go further.
Britain, for ex¬ tions of the Common Market and
ample, seeks to maintain her pref¬ the other nations of Western Eu¬
relationship
with
the rope. In the absence of such an
If the Free World economy can erential
She objects to agreement, a serious split in Eu¬
move ahead in a general era of Commonwealth.
growth with no more than mod¬ the close integration of social, rope could occur,
erate
periods
of
readjustment, farm and economic policies of the
Impact on the U. S.
Market, since these
then the adjustments involved in Common
I come now to my third and
making the Common Market work would interfere with her Com¬
can probably be absorbed.
On the monwealth ties. And she is not last question: What does the Com¬
other hand, if the Free
World willing to contemplate joining any mon Market mean to the United
But, on this score, developments
the world economy, and spe¬
cifically in the United States, are
likely to prove of key importance.
in

the

Thursday, June 18, 1959

.

.

organization of trading inter¬

an

community was Common Market countries free of
or
under
extremely low
asked what he thought of Senator duty
Europe is neither selfFulbright's statement to the effect tariffs.
that: "Europe must federate or sufficient in agriculture, nor does
British

And American Business

that

.

(2754)

will

Chronicle)

Calif.—Charles

continue the

business

of

Blalack

2486 Huntington. Drive,
sole proprietor.

in¬
&
as

Volume

189

Number 5856

.

.

.

The Commercial unci Financial

Chronicle

(2755)

Continued from

chance that through research,
plus
more
aggressive
merchandising,
the textile industry can restore

9

page

The Long-Term Textile
Thus, it appears * that the Sub¬
committee's -major recommenda¬
tion is well on the

to full

way

realization.

Improved
second

Textile

Statistics—A

recommendation

appropriate

that

was

government

agencies

expand the collection of relevant
statistical data and report these
more

quickly, to assist the indus¬
try in its efforts to gear domestic

production

more

closely

the

to

current state of market demand.
There has been no
opposition ex¬

pressed

to

this

this year,

Outlook

increase

in

production

specializing in the

The

Professor

broad

or

com¬

did

T.

M.

Thus

years.

from

now

There

textile

if

—

the

a

the next decade—if it occurs at
all—will be less than that of the

year

past pattern

is

evidence

some

manufacturers

in

past decade.
What

inflexible, but would
permit imports to expand as the

total demand for textile mill
prod¬
ucts in this
country increased. As
yet, there has been no action on
this recommendation.

Elimination

the

of

two-price

cotton system—The Subcommittee
pointed out the inequity of a pro¬

which

gram

required

domestic

mills

to pay premium prices for
cotton grown in this
country, and
recommended the immediate

II, paper, plas¬
tics and various light metals have

displaced

fibers

many
types of
other industrial

that

to

sively

in

The

industry.

During the present
example, mill man¬

agements

are

present upturn will not
definitely.
volatile
tion

man¬

Recognition

conditions

produc¬
help stabilize
the industry. Rapid

itself

in

expansion

of

inventories

would

only hasten the day when
would

far

mands.

I

exceed

not

am

behavior

:

these

current

implying

alone

and

in

re¬

industry has

fiberglass

machine

to
and

gears

other machine parts is only a be¬
ginning.
Further
research
and

experimentation should lead to
industrial uses for tex¬
tiles, and in the future the indus¬

many new

trial

market

again.

should

once

Competition between tex¬

tile and non-textile materials will
continue.
But it will be compe¬

will

de¬

few years.
Careful review

a

the

factors

decline in the

capita consumption of textile
mill products in the past suggests
that any further decline during

per

the

that

smooth

of

which have led to

next

small.

10

to

But in

elimination of the two-price sys¬
tem. It was further recommended

cycle. But it might
help dampen extreme fluctuations
and help produce greater stability
in the

decline will

that until the two-price
system is

in

out the textile

15

will

years

making

be

a conserva¬

past.

the

directly from the two-price
tem.

While

these

tariff

it

is

sys¬

unlikely

adjustments

that

will

be

made, it is highly probable that
the two-price system on
cotton
will be

gradually eliminated.

Review

of

foreign

trade

pro¬

to
direct
investments
to
non-textile outlets
underdevel¬
gram

—

oped

countries

trialize

have

anxious

quite

Employment
ment in this
is

per

to

indus¬

naturally

sought to construct

it

textile

mills.

dollar of invest¬

industry is high. And

to

understand

why a
country lacking in industry seeks
to

easy

construct

textile

mills.

The

Subcommittee recommended,how¬
ever,
that in view of existing
world textile capacity those ad¬

ministering

foreign aid

our

pro¬

gram seek new investment outlets

less competitive with an industry
which is already faced with peri¬
odic crises

of world

tion—given
effective

the

an

overproduc¬

current

demand.

ommendation

form of

was

This

state
last

more

of

rec¬

in

the

admonition than any¬

thing else, and the extent to which
it will be followed remains to be
seen.

IV

What
and

is

what

look?

the

is

The

improved

current

the

situation,

short-term

textile

out¬

situation

considerably

since

has

the

second quarter of last year. There
has been a substantial increase

in

the

production

fabrics.

of

man-made

The

output
of
cotton
goods picked up moderately dur¬
ing the fourth quarter of last
year, and the outlook is for fu¬
ture gains. There has been rela¬

tively little improvement in
woolens

and

worsteds,

although

the current level of production is
above the low point reached in
1957. The outlook at present is for
continued

textile

v

on

expansion

of

overall

production for the rest



What

the

little

to

bolster the

morale

,

of

anyone in the

industry. But such
an
approach to long-term fore¬
casting would, in my opinion, lead
to

results.

erroneous

woolen
the

and

example,

The

worsted

domestic

entire

segment

of

textile

would

before 1970

industry, for
disappear long

the basis of

on

be

based

tion
the

to

upon

the

of

careful

causes

past, and

upon

these and other

in

occur.

Imports and Exports—It is im¬
portant to be realistic about future
imports and exports in making
such

projection.

a

almost

certain

Exports are
during
although at a

to

decline

in tex¬

country is expected
25%. There will
substantially larger increases
in personal
income, and in per¬
to

increase

by

be

sonal

consumption

These
will

expenditures.
growth
factors

powerful
than

more

offset

declining

capita consumption and — in
opinion—the effects of mod¬

per

less

between

has

already

Exports

dropped

1962

and

1957

than

during the five preceding years.
Imports are equally certain to

more

At

the fu¬

rapid rise in total textile im¬
may be anticipated.

trends.1

the past decade.

responsible

for

the

decline

will

slower

than

rate

mitment to

a

the

increase

of

Despite our com¬
program of greatly

liberalized trade there is

in

will

be

a
modest increase.
The
is true for woolen and wor¬

same

sted

fabrics, although the current

outlook is for a smaller relative
rise for these fabrics than for cot¬
ton goods. This

projection allows

for

continued

a

these
the

will

be

blends

substitution

of

to

blends

fibers, but

rather than

100%

syn-r

thetics for natural fibers.
Within

the

synthetic
fabric
the decline of rayon and

group,
acetate

the results of this

seen

petition

phase

during

of

each

the
cycle

com¬

downward

during

the

postwar period. The Pastore Com¬
mittee report pointed out that the
textile industry "suffers from an
of

excess

price competition."

This

results from the large number of

independent producers manufac¬
turing each of the major staple
fabrics.
sive

It

is

true

that

the

con¬

benefits from such aggres¬

sumer

price competition

short-run

but

—

—

again

in

the

the

social

costs have been high. ... "
There is some evidence of

a

slow, but gradual change in the
industrial structure of the textile

industry. This is the trend toward
fewer but relatively larger firms.
It is
I

am

necessary to emphasize
not discussing larger

but about
are

that

mills*

where

cases

brought

over-all

together

more

mills

under

the

management of a single
If this trend continues—

concern.

I

as

expect it will—management
increasingly recognize that no
firm in the Industry gains in the
long run from an excess of price
competition. There will be more

will

of

an effort to
gear production to
the current state of
demand, and
this should dampen—though it is

not

likely to eliminate—the tex¬
cycle. As a result of this there
will be greater short-run
stability
of prices and employment than
tile

has been true in the past.

will

continue.

For

many

those fibers have been dis¬
placed by newer synthetics, and

a

grow¬

Larger firms are also more like¬
ly to spend substantial sums for
research
small

this substitution is bound to con¬
tinue.
The growth of the newer
non-cellulosic synthetics will be

rapid

-—

should

present

more

ten

next

to

output levels

than double
fifteen

over

The

years.

growth of this

sector

dustry

the

bolstered

will

be

of

the

in¬

by the
synthetic fibers
and fabrics not yet
developed.
addition

of

What

new

of

employment?
Given
any reasonable assumptions about
imports, exports and per capita
consumption, the current outlook
is for

a

further decline in textile

employment.

The

major

factor

behind this will be continued in¬
creases
in
output per worker.
Gains in productivity in the tex¬

industry

the past decade
large — much larger
than the average increase for all
manufacturing. These gains will
continue as the textile industry
over

been

continues its research efforts and
further gains in. productivity will
result from research by the tex¬
tile

machinery, chemical and other
supporting
industries.
All
this
will add to the ability of domestic
mills to turn out more yards of
cloth with less human
If

the

productivity

effort.

trends

the past decade continue

of

development than
in my opinion

And

the future of the domestic textile

industry depends to a large extent
upon an ever expanding research
and development program.
Thus,
in

the

should

ucts,

long run the consumer
benefit from better prod¬

made

better

on

machines, and these

and

faster

may. even be

sold at lower relative prices thai*
those currently prevailing.

If

this

trend

continues,

some

will

object that the consumer is
losing the benefits of price com¬
petition.
But with more stable

mill-margins,
and

more

stable prices,
employment, tex¬

more

stable

tile manufacturers can

turn else¬
where—as they are doing in any
event—for other means of com¬

petition, namely, better products
and. better production processes.
As in other industries

(steel, autos,
competition should increas¬
ingly take the form of product
etc.)

improvement,

m ore

aggressive

merchandising, better service and
similar non-price forms.
There

need

be

little

monopoly in textiles.
very
little
likelihood
number
will

of

will be
of

in

the

that

of
is

the

industry

extremely
small.
likely is that there
relatively small number
firms, with many hun¬

more
a

large

dreds

firms

fear

There

become

What is

even

—

and

firms.

uses

or even

thousands of smaller

firms, but with the latter tending
to follow more closely the pro¬
duction and pricing policies of the

the next ten to fifteen years.

former.

The rate at which textile employ¬
be significant,

growth,

however.

textiles

over

ment declines will

If

ing body of opinion—even among

domestic textile

shift

of wool and manmade

allowing for moderate increases
the present time a reason¬
in total production—total textile
assumption is that imports*)
employment in the United States
continue to rise, but at a
might drop by as much as 20%

able

major factors have been

seem
reasonable
based
the above assumptions. For
cotton
broadwoven goods
there

upon

exports

Along with this one must
consider any potential growth fac¬
tors which
might reverse these
Three

jections

cline

down.

than

during the past decade.
briefly to individual
fabric groups, the following pro¬

have

in

successful

Turning

tile

slowed

more

it has been

of the past
Indeed, the rate of de¬

ports

ture.

be

will

I expect

merchandising will
aggressive, and that

more

it

ten years.

products in this coun¬
try rises. And in the absence of
such import quotas a somewhat

in

for textile mill
products.
that
textile

the years ahead,
slower rate than that

textile mill

the effects of

causes

further modest

a

instituted they will allow for some
increase as the total demand for

examina¬
decline

of

that

assume

rise. Even if the quotas proposed
by the Pastore Subcommittee are

simple

extrapolation. But this is not at
all likely to happen.
Any attempt
to project textile production and
employment into the future must

the

decline

is

rela¬

This

projection

of
long-term
greater stability, in
might appear over-opti¬
and

tively slow, it can be geared to mistic to many. But it is not an
attrition in .the industry.
attempt
to
bolster
industry
the
burden
of
rising
imports This will consist mainly of the
morale. This view is based upon
should be more equitably shared
retirement of older workers, but
analysis of the factors which led
than it has in the past; that the
if necessary it could include the
to decline in the recent past, and
tive to examine the potential ef¬ growing sectors of the economy layoff of some younger workers
their probable influence in the
should absorb a larger share than
fects of these causal factors during
particularly where seniority sys¬ future.
It also includes evalua¬
declining sectors.
Also, the de¬ tems
the coming decade.
prevail. Because the younger tion of those factors which con¬
fense essentiality of textiles must
workers are more adaptable and tribute
Declining Per Capita Consump¬ be recognized
to economic growth.
On
by our policy more mobile than older workers
tion
Much of the decline in makers. The
balance, it is my opinion that the
Senate Subcommit¬
this will create much less hard¬
household consumption of textile tee
expansionist forces will outweigh
pointed out, for example, that
ship than the mass unemployment those which lead to
mill products during the past dec¬
there
would
be
contraction.
little point in
of recent years which largely was
ade has been due to the substitu¬
There will, of course, be further
maintaining our present huge de¬ due to mill
liquidations. If how¬
tion
of
paper
and
plastics for fense expenditures if at the same
vicissitudes, and there will be
things made of cloth in the past. time we allowed essential indus¬ ever, the drop in employment is cases of hardship as individual
the result of further liquidation
There will undoubtedly be other
mills
close.
But
the
tries to shrink to the point where
long-term
of mills there will be protracted
substitutions in the future.
But
outlook is far more favorable if
they could not satisfy basic ci¬
hardship for many workers —es¬
it is unlikely that these will cut
one examines all of the factors af¬
vilian and military needs in the
pecially those in their middle
as sharply into traditional textile
event of an emergency. Thus, for
fecting the textile industry than if
years — and the social costs will
markets as they have during the
one
merely looks uncritically at
the purpose of estimating textile be
high as they have been in the
past decade., Aiso, there is a good
what has happened in the recent
production in this country in 1970, past.
past.
1 The remarks which follow are based
production during
These are: (a)
declining per capita consumption;
(b) rising imports; and (c) de¬
clining exports. It will be instruc¬
the

past

some

decade.

academic

economists

—

that

normal

—

►

a
statistical projection of the tex¬
industry to 1970. While the results
are
preliminary-—and
not
yet
ready for publication—it is unlikely that

upon

tile
of

the
text

of

of

long-term outlook
in view of the declining trends
of the past decade?
Simple ex¬
trapolation of these trends would
do

projection
of
textile
mill
activity over this period, it is best

industry than it has known

the

completely eliminated, tariffs be
cotton fabrics to equalize
difference in cost resulting

the

years

•

expand

last in¬ tition, not simple substitution, as
has been true so often in the
past
of
the

nature of textile

should

such

the

But

uses.

molded

manufacture

to

that

aware

packaging

in

compete more aggres¬
the industrial market.
of

use

fabrics

and

cent years the textile

begun

support the thesis that mill

Since the

end of World War

tive

raised

have

ten

tile production will be reversed.
Between now and
1970, the popu¬
lation of this

become

to

happen to
textile mill prod¬

the demand for

general

evidence

likely

is

increasingly recognized the
cyclical nature of production in

of

'*

ucts for industrial uses?

have

sweep¬

These quotas

next

Stanback, Jr., of parel uses. I am not suggesting
my
University—have con¬ that the per capita consumption erate
increases in imports and a
firmed
statistically
what
most of textile mill products for per¬
slow decline in exports. New in¬
textile manufacturers have long sonal and household uses cannot
dustrial uses will be
developed—
known, namely, that the average decline further. What I am saying
particularly for synthetics—which
duration of the textile cycle is is that the rate of decline
during will help bolster
the total demand
about
two

ing changes in our foreign trade revival, for
policy. But it did recommend that agements have been less willing
to expand production to full ca¬
the import of textile
products be
regulated, and that this be done pacity than has been true in the
through the imposition cf quotas past. There has been less of a
rush to move to a
on
six-day week,
all categories cf fabrics in
for
order to prevent further
(example, and there are vari¬
damage ous other bits

to specialized mills.
would not be

the shift to casual

the

long-term downward trend

New York

pro¬

Subcommittee

recommend

as

be

must

this

foreign

petition.
not

mar¬

wear of the past few
years—will
do little to reduce the
per capita

But this

prevails — textile production and
employment, will be declining as
inventories accumulate, prices
it.
"
.i:'
and
mill
margins
are
Import Quotas by Category of fall,
Fabric—It was pointed out in the squeezed. The industry should be
aware of this, and should be
pre¬
course of the
hearings that textile
imports are heavily concentrated pared for it psychologically as
well as otherwise.
in a few
categories of fabrics, and
duction of these fabrics have been
unable to withstand

household

changes in clothing

consumption of textile mill prod¬
recognized for what it is—a cycli¬ ucts in the form of apparel. And
cal upturn.
Two recent studies— style changes as yet unforeseen
one issued
by the Department of might even raise the per capita
Commerce, and one published by consumption of textiles for ap¬

recommendation,
and it is quite
likely that positive
action will be taken to
implement

that mills

lost

Further

styles—such

and probably through¬

out the first half of 1960.

its

of

some

ket.

VI

Over

23

I

have

erate

assumed

rise in

this

broad
will

ftaements.

generalizations
be

altered

by

made

in

subsequent

the

decline

outlook

in

a

exports.

on

re-

assumptions?

further

imports and
the

What

basis

of

mod¬

slow

a

is

the

these

One

last

discussed.

pride

trend

Textile

themselves

remains

to

be

manufacturers

With Casper Baumgartner

large
number of firms in the industry,
and on the
rugged competition

W.

which

pany,

this

on

the

engenders..

But

we

SCOTTSBLUFF, Neb.—Richard
Baumgartner has joined the

staff of Casper Baumgartner Com¬

1705 Broadway.

The Commercial and Financial Chronicle

24

.

.

.

Thursday, June 18, 1959

:M

(2756)

B. Fire,

Continued from

first page

the flow of credit, and if economic

money market
could add additional problems. However, lending

Casualty and Marine

activity expends excessively and
benefit there is a trend to higher interest
So far there has been evidence
from higher rates.
Consequently, rates,, some; investors mayf switch
of improved underwriting results.
we should
anticipate real eompe- ;to 4'ixed income securities as>a
As most such companies are sub¬
tition from mortgages during 1959 hedge and to obtain the more-atject to the corporate income tax, from
applicable investors"/when-. tractive yields./So/thereis ;§pme4
lax-exempt municipals are an at¬ ever
tax-exemption is not ;impor- benefit^ to' cre'diHrestrictiohV aside1
tractive investment medium!, par-^
tant or where the purchase of mufrom being an anti-inflationary
ticalarly as yields have increased.
nicipal bonds has been merely a measure.
> nicipal bond market in the United Such insurance companies are temporary " haven for- -loanable
,
• " v,
VII
,
States as this discussion develops. usually canny buyers and have funds. %;&'*■
AA/AA:
Evaluation of Prospects for
frequently offered strong support
>* Remainder of 1959 and
m
to sagging markets.
We should C. United States Treasury Needs
v'Y* .'i/v
!'•
*'•
Early 1960 ; ' ;
Source of Funds for Investment
expect $1.1 to $1.2 billion added
It does not appear ;.that :there
Gur
previous comments have
to their tax-exempt holdings dur¬ will be
The potential source of funds
any real reduction in the
Federal
deficit
for investment is of considerable ing 1959.
throughout
ora
at
year. Roll-over of short-lerm. msi~-v the.Lu^uite;. At best, .Qiie can _9nly
importance to those issuing mu¬ C. Life Insurance Companies
nicipal bonds as well as those
turing obligations, plus cash-fiThere has been no significant
nancing, will keep the ^Tneasury
a: Prac~dealing in municipal securities.
buying of municipal bonds on the
There is no great mystery as to
busy and will probably . require tiee:„of predicting, coming events
part of life insurance companies another lift in the 'debt ceiling, ar^ conveniently absent when the
the principal sources of invest¬
Insurance

Companies

institutions

earning-wise

Prospective Volume and
Market for Municipal Bonds

The

While

market*

bond

municipal

good under¬
standing of the bond market, it
requires daily participation, as
well as broad exposure, in order

most

of

have a

us

changing

properly evaluate the

to

the overthe-counter nature of the munici¬
pal bond market in the United
States. At this point I would like
Later on I will discuss

national,

between

distinguish

fads;

beyond
the
usual placements.
ment funds, as follows:
Some companies have been an¬
statistically rated
(A) State and Local Govern¬ ticipating the imposition of new
borrowers enjoy national markets. ment Retirement Funds.
or
adjusted taxes to modest ac¬
Somewhat lesser-known credits
(B) Fire, Casualty and Marine quisition of municipal bonds to
are
traded in regional markets, Insurance Companies.
their portfolios.
Once individual
and small borrowers look to local
(C) Life Insurance Companies.
tax
liabilities
are
determined,
regional and local markets. Large,
well

known,

-

markets.

national

So-called

credits

(D) Mutual Savings Banks.
(E) Commercial Banks.

can

of several
centers of the

be traded in any one

financial

major

As credits become

United States.

less well-known
in

look

,

scene.

to

v

nature,

■

the market place
point of origin.l

after

terest in

Associa¬

1959

expect

interest in United

-blue's. forecasts,..I. find.: it- difficult
to suggest what might happen,
chance
of
successful ' long-term market-wise, in ihe.months"ahead,
bond financing u n d.er existing without supporting such evalua-t
market
conditions
and,, interest tion by related action".- As an in-1
new tax bill, rate limitations. A tight money vestor as well -as an investment
increased in¬ market has resulted in more* com- banker; I must base, my market
bonds. During mercial bank liquidation bi Gov- actions, on my own predictions;

municipal
$400-500 million
in this area.

some

Securities by manyipvesjtorS^ It
is obvious that there is very .little

will

be invested

Pension

Corporate

(H)

of a

passage

should

we

(Non-Municipal).

tions

local

and more

Individuals.
(G) Savings and Loan
(F)

Funds

re¬

(Non-Municipal.)
In
addition, other investment
Most municipal bond issues come funds may originate in investment
into being by electoral or statu¬ companies, Federal Reserve Banks,
tory approval. Public sale by com¬ Federal
agencies,
non-financial
petitive bidding, either by sealed corporations, credit unions, other
bidsror auction, is a normal pro¬ consumer lenders and foreign in¬

D. Mutual

cedes to the
i

Ovefcall,
it rather'.than
make .adjustments
though, the TfehSury -will after, the fact to correct improper
be a strong competitor for/investanalysis. With this understanding.
ment funds, but primarily short- let us take a look at the prospects
for * the
remainder .of - 1959 and
term.
However, the Government
bond market will always lilay' a
early 1960.

ernment. securities.
looks as

Savings Banks

potential tax change should

A

a;depjine of time-for. such' events has arrived;
States!T^asury! J^ithodt /.taking: issue ^

There is evidence of

produce some interest in munici¬
pal bonds as well as more liberal
yields. Possibly $100-200 million
might flow into municipal bonds.

major role in

the

bond

general

As to Interest ; Rates.

A.

its-:influence on
the attitude of investors towards
fixed income securities in general
market

through

Yields today 011

•/•./

*

1

municipal bonds

are the most attractive they have
E. Commercial Banks
~r
been since 1935 when- the top
The
substantial
additions
to and ' rates. in particular. *
<
of investment
J
'
•. <)
'i
'
Federal corporate income tax: wa^
municipal holdings during early D. Within? t.he Municipal Bond
.as compared to the" 52%funds are potential investors in
1958 will not be repeated during
; Market Itself.
;
nicipal bond issues, determined by municipal
bonds.
In addition, 1959. Loan demands, rising inter¬
y 1 ■,
levied' today. Considering all of
local sale laws and the nature and •
Later in "this discussion *1 " will {he factors that; liaye influenced
prospective investors may shift est rates, bond depreciation and;
size of the borrower and the con¬
have something to say about -the interest rates during the last 25
funds from one investment me¬
tight money will have their in¬ outlook for the dollar volume of
dition of the bond market/
years,
it would seem logical to
dium to another, according to in¬
dividual
effect
on
commercial
The municipal bond market is dividual needs and market factors.
municipal bonds during, 1959-60. expect-that rates have risen about
banks. In addition, the substantial
a healthy manifestation of the free
However, at this point we should as .high as they might.- However,
increase in time deposits will not
IV
recognize that we can anticipate it is not that Simple as there are
enterprise system. Using figures
carry through the year as in 1958.
an
increase in long-term financ¬ other considerations, the principal
compiled by the Blue List which
Prospective Flow of Investment
Still there will be room for ab¬
does not record all bonds avail-?
ing by States and their political ones having been discussed preFunds for the Balance of 1959
sorption of $1 to $1.5 billion in subdivisions.
To absorb this in- viouslyr'
able in the market yet provides
And Early 1960
municipal bonds.
Such invest¬ crease competitively with; other
an excellent index of principal of¬
Therefore, I predict that for the
What can we expect will be the ments will replace run/off, pro¬
investment mediums, municipal balance - of" 1959- we
ferings of new issues and second¬
will have
flow of investment funds to vari¬ vide tax-swaps and fiduciary re¬
borrowing, will frequently crowd somewhat-higher' lPrig-ternt in-"
ary market bonds, daily listings
ous
types of investors?
Several quirements and as an aid to future the new-issue calendaiy This will fnrrct • ritos
have varied from a low of $155,There
will
be "a
estimates
for
1959 have been earnings, as attractive yields be¬
450,850 to a high of $391,681,000
tend to bring- about, higher bor- leveling W towards-the end of
made and while not basically dis¬ come available.
during 1958. So far this year the
lowing costs due to excessive sup- the' year and some decline during
lofo was $166,782,500 and the high agreeing with those who have F. Individuals
r
* ply and the reluctance of investors eariy i960. - Short-term rates will'
to
$340,161,500.
The amazing fact made earlier estimates, I will try
buy.
Investment;-dealers,, .m be under pressure and rise pro-:
Tax exemption, hedging against
about the municipal bond market and project my estimate into 1960.
turn, will be more cautious of their p0rtionately
faster" and : recede,
the stock market and more liberal
is that it is unregulated and self- Inasmuch as our concern is pri¬
mventoiy risks.
,^
* faster: - Periodically, there will be
marily municipal bonds, I will not yields will tempt individual in¬
While new schools ..have .been
policing—of which I will discuss
temporary technical i m pro V evestors during 1959, despite obvi¬
later. In the face of a rising vol¬ attempt to discuss types of in¬
one of the most needed rpf,public
me^-s of course, any significant
ous periodic flights from the bond
vestors who will not be significant
ume of long-term new issues to¬
market, sufficient to absorb about
taling over $7 billion during 1958, purchasers of municipals. In the
■ ;
as
estimated by "The Bond area of so-called institutional in¬ $2.5 billion.
Buyer,'* and an estimated $56,500,- vestors, I would estimate that
transit and' parking facilities;
to
000,000 outstanding June 30, 1958, during 1959 some $2 billion in
pitals, water supply and. sanita- , £ ™Jf, Pth' t
Competitive Factors Affecting
as compiled by the Treasury De¬
municipal bonds will be absorbed
Flow of Investment Funds
tion, plus the pressure of increas;
partment,. the
municipal bond by insurance companies — life,
ing population a-nd: ipopulation
rise lower duality
Competition for investment
market has still continued to give casualty, ste. — State and local
movements, will exert their, force
yv..
® rates rise,^lowey quaj y.
funds will have an an impact on
a good account of itself.
on
the supply of new municipal
pension funds, and mutual savings
the municipal bond market. Aside
banks. Commercial banks will add
bond issues.
from those institutional investors
out-of-line, while higher quality
B. Canada
some $1.5 billion to their holdings,
to purchase municipal
yr,
•'.x;
credits are adjusting %in: closer
In deference to Canadian mem¬ individuals $2.5 billion and other required
bonds
and
individual
investors
relationship to the market.' As
Other Factors Affecting jh'e^y
bers of the Municipal Finance Of¬ investors $0.5 billion, or a total of
markets improve'and rates de-.
with major tax problems, shift of
Municipal Bond Market
ficers Association, I cannot pass
$6.5 billion. For the first half of funds to the most attractive eli¬
cline, the reverse is frequently
A. Monetary Policy
:
"
oyer municipal finance in Canada 1960 approximately the same pro¬
the result.
/Ay!
'
gible investment medium is nor¬
without comment.
portionate total increase in hold¬ mal investment practice. As the
The
problems ^Besetting -the
Obviously, the nature and pur¬ ings will take place with potential
Treasury and the/functions of the b. As to Dollar Volume of
:.
supply of investments increases
pose of municipal debt, in com¬ additional anticipated new debt and as the
Federal Reserve have a very basic
v-.f Municipal Bond Offerings
:
money market tight¬
parison with the United States, absorbed by insurance companies
effect on the municipal-b.opdnnar- ..
ens, rates tend to rise, forcing bor¬
Despite some withholding of
cedure for the issuance

of bonds.

vestors.

negotiated sale also ac¬
counts for a number of new mu¬

Private

all

Not

'

sources

-

_

-

,

Jros-;itdsneoSsary
S credit
o^Interest'
*L{j®

,

.

%

,

-

is somewhat

ada.
and
sues

and

are

in Can¬

at variance

Bond issues

come

into being

sold in various ways.

Is¬

variety of guaranties
payments too numerous to

carry a

mention.

While there is

the-counter market for

an

the market is

essentially

a

Domin¬

gross

new

rowers

look at some of the in¬

class in order to ana¬

interest

their potential
municipal bonds.

in

State

A.

issues

and

Local

Retirement

Government

Funds

to

know, such funds con¬

grow

as

eligible

em¬

ployees are added and salaries are
increased.

While

will also increase, this

will be off¬

set to some extent as some
are

adjusted to

basis.

The

a proper

funds

actuarial

usual limitations

im¬

the small funds, will have a con¬

had their effect

on

Canadian Pro¬

vincial and municipal borrowing.
Much as I would like to continue

to draw parallels between Cana¬
dian municipal financing and that
of the United States, it is not prac¬

tical to do

so

within the confines

of this paper. Therefore, I shall
confine my remarks to the mu¬




of

demands

or

pay

the going rate.

Corporate Requirements
So far during 1959

there is evi¬
bond financ¬

ing will be at a moderate pace
with normal expansion of plant
and

equipment and inventories
It is still , too early to

determine what the effect of more

Actually,, many bond market
factors in the United States have

the

means

withdraw from

market,
seek
other
satisfying their fund

disbursements expected.

posed on investments, particularly

than

either

dence that corporate
As many

previous years.

market

to

bond

the

A.

tinue

of
provincial and municipal bonds
totaled an estimated $1,194,000,000
(Canadian $), including bonds
payable both in Canadian as well
as
other
currencies,
exceeding
prior years. 1958 saw more money
being raised in the New York
year

us

lyze

States,

ion market.
Last

Let

vestors by

over-

Canadian

municipals in the United

investors.

individual

and

liberal credit policies,

credit cards,

as

yields

exceed

municipal bonds

corporates

in

turn, is registered in the ibond
In otheirwords, the avail-

market.

of

ability
the

substantial
increase in borrowing costs will
chill some corporate bond borrow¬

income

on

receivables.

The

No significant competitive
factor arising from corporate re¬
ing.

b. Mortgage

Requirements

,

,

rency, the Federal Reserve causes
interest rates to rise and fall, This,

and

The
pressure
for real estate
and mortgage funds is apparent. Com¬
mercial banks
and institutional
Governments.
We
may
expect
investors are reacting to this de¬
some
$400-500 million additional mand either through a shift of
funds or curtailing loans. A tight
investments in municipal bonds.
chase of eligible

psychological as well.my-.
The constant threat of inflation,

new "market due to
"municipal bond
the

issues from
current

the

Jhter^t^^ates 1959'
together with r^away specula-,^ "volume o?
ttf
^ hnnd „fmoney markets
regidatiiig the
£0"me
r

and overdraft accounts will have

tinuing influence on the type of quirements during 1959 will affect
the municipal bond market.
investment purchased. Local in¬
fluence will account for the pur¬

a/S? ?

hfit

but

func^

for.

investment

municipal bond-market.

-

,

have

previously noted

the

hf

These have been

slow to come to market and there
stl" authorizations from prior
Yeafs that may bg expected^to be
sold. Those borrowers who dq
are

pot require electoral appioval for

.

authorization always account
few surprises.

'

"Voters have seen nt to con-

tinue

to

approve

financing

of

pub¬
in¬
telligently
presented and
they
have/confidence in their public

soundly conceived, necessary
lic

Level of Economic Activity
We

i "f

rate offreturns on fixed iheir
securities brought about for a

by exercise of the monetary policy
is transmitted tp the level of the

b.

biL Telei

improvements if they.are

officials, despite the potential of
increased taxes. As previously
discussed, public improvements
today are-' generally larger and
reasonable to €jxPect that some more substantial to serve more
borrowing will bjb curtailed and/or people.
Inflation, spiraling costs
higher, interest rates will vTesult. have been responsible for larger
If our monetary policy reduces
bond issues. As an offset, some

of fund| demands reflect
business activity.
As
such needs increase and compete
with other fund demands, it is
impact

increased

Volume

189

Number

5856

.

The Commercial and Financial Chronicle

<

.

revenue bond issues of a construc¬

of

tion nature

risk.

not feasible when

are

borrowing: costs

high

are

and

so

shelved.

are

It

wasn't

nual

total

so

of

bond

new

being the ultimate.
exceeded

every

1952, with
last.

should

-

exceed

an¬

issues

as

following

year

$7.4

Nineteen

$8

amount—

we

This has been

total of

a

year.

small

billion

fifty-nine

billion

1960

pushing $& billion.

bond

dealer's

ing tax-exemption at this point is

interested

tax-exemption through municipal
borrowing is construed to be for

to

Finance

Officers

are

by

a

should

be

receiving the best possible bor¬
rowing cost.
Therefore, as you
view

the

dealer.

bond

wins

one

the

if

mu¬

a

nicipal bond issue take losses
their

commitment.

funds

still

Relating to

No

Their

on

capital

reduced; customers are
feeling they paid too

are

and

an*

;definite

the

borrower

cated

often carried forward to

a

Municipal Bond Market
No

bond,

discussion
market

of

the

would

municipal
complete

be

.

the

t—

next

cannot

the

bond

control

successful

sale.
the

dollar in

antipathy
is

fabri¬

While you
enthusiasm of
.

bidder

he

has

there

Those who bid for your bonds in
the
underwriting
process,
dis¬

other ways in which you can
if the market has declined

would
the

cause

vesting institutions and

the

have

of

banking

an

viewpoint.

maintain

over-the-counter
kets

in

have

secondary mar¬
outstanding
obligations

a

nature

pal

considerable

stake

and course of

bond

the

in

the

munici¬

market.

In my previous remarks, I have

indicated
factors
bond

the

tne

affecting

market.

important
municipal

the
have

I

also

and

the

issues

possible direction of

rates.

say

lew

a

noted

new

growing volume of

terest

I would

words

municipal
A.

of

some

bond

concerning
dealer.

discussing

bond,, market,

the

I

not

the

'

municipal
out

nature.

What

is

mention

the

its
I

"exempt"

rather

or

unregulated status of
Municipal bonds do
fall within the jurisdiction of

the

market.

not

the Securities and Exchange Com¬
mission except as to fraud. This

of

oversupply
money market,

sale

date

with

or
as

Sale Timing: Be

(1)

a

has

other

the

action of
follows:
that

sure

least

a

conflict

borrowers

seeking to
their -bond issues, either
nationally or locally, depending on
the primary market.
Don't hesi¬
tate to postpone sales if your in¬
vestment

banker

do

so

advises

and

legally. Don't try
and "beat" the market, as the re¬
sults are usually unsatisfactory.
you

can

so

(2) Single Bids: Receipt
single bid at sale time can
of

many

things.

of

a

mean

Either lack

of interest on the part of munici¬
pal bond dealers, insufficient ad¬
vertising and distribution of the

notice

of..

sale,

too many other
by municipal bond
dealers, unusual or unsatisfactory

commitments

bidding

terms, individual credit
problems of the borrower, and, on
occasion, collusion. -Fortunately,
the

latter

is

reason

seldom

parent.

ap¬

'•''

compete

Some

in the

maintain high standards of busi¬
ness conduct through self-regula¬

writers. Many dealers feel that in

tion.

'

While
we
recognize that
marketing customs exist in

element of risk for the under¬

today's market, highly competitive
bidding for large issues requiring
nationwide

distribution

is

national

forms

of

be

market.

municipal

fiscal practices, not only from the

standpoint of "housekeeping" but
when marketing your debt obliga¬
tions.
B.

'

|

/.

ment

Inventory Risks

I am sure that many have heard
municipal bond dealers speak of
their inventory.
It is their stock

trade

in

flow "of credit is of concern to the

municipal

borrower

as

{ancl

represents

their

well

as

Curtail¬

postponement of public
works, not immediately required
or
necessary,
during periods of
tight money and corresponding
high interest rates, tensed to ease
some of the inflationary
pressures
or

prime

merchandise, both retail on our economy.
Through
the
various
Inventory can be
money
profitable or very costly.. Usually, market procedures of the Federal
dealers pledge their inventory as Reserve,
considerable impact is
and

a

fi¬

for loans.
It entails the felt in the municipal bond market.
capital funds to the extent Those actions which tend to raise
margin requirements or the interest rates and decrease the flow

of

entire
use

gf

inventory might represent
capital funds.
The dif¬

ferential

between

rate

the

and

mines

the

the

coupon

cost

of

borrowing
rate

deter¬

borrowing,

if

any.

Today when we speak of in¬
ventory risks we seldom refer to
credit: deterioration

of individual

borrowers, but rather the
tial market swings.
markets

through
creased

can

poten¬

down, either
supply or in¬

demand

by the action
money, market.
In either
case, the municipal bond dealer
has no control-and,
consequently,
he is'subject to inventory risks.
A quick glance at last year's mu¬
nicipal bond market and the mar¬
of

ket

or

the

so

far this

can bring
inventory losses
and marketing problems previous¬
ly discussed. To help in our fight
against inflation and,
in turn,
bring about a better climate in
some

year

in

indicative




of the

the municipal bond market, every
effort should be made to regulate
the municipal bond supply poten¬
tial in sympathy with the objec¬

tive

of

our

It is true that

go up or

excessive

of funds for investment

about

C.

economy.

Tax Exemption
It is

hardly necessary for

elaborate

on

the

subject

me

of

nance, such as local aid-to-indus¬

five years.

Treasury is not going to sell long-term bonds, which extend the
maturity of the debt, with a 4*4% coupon rate. Before June 30th
the temporary and permanent debt limits will be worked out. On

It is this type of public

concern.

finance that encourages legislation
that could seriously impair State
and local tax

to

the other

The

see

It

the

It is complex

in nature and yet, year after
year,
all necessary public

improvements
requiring bond financing that have

than five years.
The pattern of interest rates is dictated in no
small measure by the course of
business, since the demand for

been approved either by the elec¬
torate or the issues, have been

Our

brief

size

of

market, the

look

the

at

the

on

cut costs and at the

bond

lessening if responsi¬
ingenuity in the tech¬
niques of underwriting'. Some of
the other points discussed suggest
no

monetary authorities
any easier to obtain.

or

of

measure

contribute

to

keting* of

As

responsibility to

the

successful

State

and

Before

der

a

a

matter of

are

fact, there

not

are

Bankers

seeks

to

municipal

or

program un¬

well

by the Invest¬
Association, which

few money market spe¬

for

as

refunding purposes.

broaden

the

market

Interest in Government Market

for

except for
liquid maturities, because there appears to be an
ample supply of funds seeking a spot in the various maturities of
Treasury bills.
This condition is not expected to change very
much, since a period of uncertainty in the money market always
brings with it a demand for the most salable and marketable
the shorter most

The intermediate term obligations are still under more than
modest amount of pressure, with the 2%s of 1965 and the 2^s

issues.
a

of August 1963 being the issues which have been the most active
largely because of liquidation by commercial banks. It is reported
that these funds are being reinvested in tax-exempt
issues, as well
as being used to make loans at rates
considerably in exeess of the
coupon rate on the obligations which have been sold. This being a
tax loss year for the deposit banks, they most likely will continue
sales of those Treasury obligations in which they have sizable
losses.

tional

and

statutory

incurrence,

State

and

away"

as

Federal

methods
or

long-term maturities

of the

Governments

still

are

not

competitive with tax-exempt bonds as well as corporate bonds
only a very small interest among those that
have funds to put into fixed income bearing issues. Some state
and therefore have

of

pension fund purchases

to
"give¬

opposed

loan

i

The

help preserve local autonomy
by pointing out the availability of
credit through
normal constitu¬
debt

Mostly Professional

The interest in Government obligations continues to be
very
limited with as much of a professional tone now as it has had
in a long time. Investor interest is- still at a low ebb

be to

are

being made, but these

are

not very

large, as well as some limited buying from monies which came
from the sale of common stocks.

programs and to the more

devious

and expensive ways of
obtaining
public
improvements,
through such mediums as "leasepurchase" financing.
*
This

is

program

constructive

FIC Banks Sell Debs.

Forms Irwin Schloss Co.

The Federal Intermediate Credit

Banks

offering yesterday (June
and deserving of understanding as
17) a new issue of approximately
well as support. The IBA is pro¬
$150,000,000 of 4.45% nine-month
posing the program as an effec¬
debentures, dated July 1, 1959 and
tive tool to be used in meeting
maturing April 4, 1960. Priced at
the impact of expanding municipal
par, the debentures are being of¬
bond financing.
fered through John T. Knox, fiscal
agent of the Banks, and a nation¬
wide group of securities dealers.
Palmetto Sees. Formed
Mr. Knox also announced that

COLUMBIA, S. C. — Palmetto
Securities, Inc. has been formed
with offices in the Palmetto State

Life

Building to

curities

Robert

engage

business.

in

se¬

a

Officers

total of $14,500,000 of outstand¬
ing debentures maturing Sept. 1,

Oct.
for

are

1

and

Dec.

1,

1959

was

Irwin
been

sold

delivery July 1, 1959.

Form United

Guaranty

PHILADELPHIA, Pa. — Roth
and
Company,
Inc.
has
been

PROVIDENCE, R. I. — United
Guaranty Corporation has been

formed

Land

formed with offices

in

minster

Building

securities
a

to

business.

in

the

engage

Sydney
principal of the firm.

Co.,

Inc.

offices

at

has
15

Broad

Street, New York City, to
engage in a
securities business,

Officers are Irwin Schloss, Presi¬
dent, and Michael L. Schloss, Sec¬
retary-Treasurer. Mr. Schloss was
formerly with Goldman, Sachs &
Co., and Carl M. Loeb, Rhoades
& Co.

Fred Suskind
Fred S. Suskind is

Opens
conducting a

securities business from offices at
He

was

City,
formerly with First Inves¬

tors Corp.

Witter Adds Two
(Special to The Financial Chronicle)

Roth & Co. Formed

offices

&

with

55 Liberty Street, New York

Proceeds from the financing will

L.

with

Schloss

formed

a

Turbeville, President; be used to refund $110,900,000 of
James W. Hunter,
Treasurer; and 3j/4% debentures maturing July 1,
Jack W. Drawdy, Secretary.
1959, and for lending operations.

is

My purpose in mention¬

a

are of the opinion that
money and credit conditions
the capital market will continue to tighten. This means
that the Government will have to meet competitive conditions
whether it be in the short-term or the long-term section and it
does not make too much difference whether it be for new
money
as

consideration

ment

of

a

the rebuilding

not going to make credit any cheaper or

to

say

as

cialists who

mar¬

concluding I would like

to call attention to

such

mortgages, means that the
for funds is not going to show i Very much of a let-up in
the foreseeable future. Also, as long as the demand for loans is
going to be sizable as we move along the expansion road, the
pressure

prospects for this year and next

some

time to expand facilities in a small way
are on the increase and this, along

with the other demand for money and
credit,
of inventories, consumers needs, and

funds, and factors af¬
fecting the market, indicates the
areas of
activity and concern. The

bility

same

(so far), capital expenditures

vestment

indicate

" ;

has not only come through the recovery
phase with flying colors, but it is now moving into the expansion
period. Because of the need to meet competitive conditions, to

and flow of in¬

source

are

the uptrend as

In fact the economy

nature

municipal

and credit always expands when economic conditions
they most certainly are today.

money

adequately financed by a relative¬
ly small segment of the invest¬
ment banking fraternity.
and

is

believed in most quarters that higher interest rates are m
making irrespective of whether or not the Congress grants
the authority to the Treasury to increase or to eliminate
entirely
the present level of 4%% for obligations with a
maturity of more

that segment which

ourselves.

concerns

though the interest rate ceiling change
compromises not to be unexpected.
*

Higher Interest Rates Inevitable

municipal bond market is
any of us realize, as

only

we

as

time with

The money and capital markets so far seem to have taken
the Treasury's request for the elimination of interest rate
ceilings
on marketable Government bonds and
savings bonds rather well.

n

bigger than

Title

1894.

hand, it looks
more

IX

that, historically, it
hotly debated subject
since passage of the Revenue Act
has been

Under present and future foreseeable conditions the

will take

immunity.

Concluding: Remarks

tax

immunity of income derived from
the obligations of State and their
political subdivisions. It is suffi¬
cient

there is something settled by the Congress
or the complete elimination of interest rate
Government securities with a maturity of more than

changing

on

try gesture, must be viewed with

wholesale.

basis

use

of

the

ceilings

tanta¬

regulating the

corporate and individual.

!'

■,

Federal Reserve in

either until

any

over

municipal bonds. It is essentially
mount to a financial fiasco.- In
a plan to use advertising, publici¬
order to insure good distribution
laws affecting
ty, public relations, radio, televi¬
the issuance and
and
a
successful
underwriting, sion, news articles, and
sale of municipal bonds occur in
public
many syndicates merge to form a
each
meetings to inform local citizenry
State, the essential objec¬
single bidding group. The results and public officials of their role
tives of the municipal bond dealer,
of what amounts to "negotiated"
in public finance as weil as the
aro to pay a fair price for
bonds,
sales have been excellent. As fi¬
distribute them as an attractive
part played by the investment
nance
officers faced with selling
bankers. In addition, to illustrate
investment to customers and to
large issues in a disturbed bond how citizens can
be compensated with a reasonable
participate in fi¬
market, recognize the symptoms nancing their local improvements
margin iof profit commensurate
and try and understand the cur¬
through individual purchase of
with the existing, market, and in¬
rent marketing problems. Rejec¬
municipal bonds and to expand
ventory risk, the quality. of the
tion of single bids, while justified
the
limited
interest
of
certain
merchandise and the cost of doing
in certain instances, can be very
classes of investors and
to tap
business*. Finance
officers. can
costly when market conditions in¬
potential new sources of invest¬
help .their own borrowing and
dicate otherwise.
ment funds,
such as municipal
strengthen the
municipal bond
(3) Inflation: The actions of the bond funds. Another phase would
business
by encouraging
sound
various parts of the United States
and
Canada
and
that
different

Governments

steady side due largely to professional operations,, which means
principally the evening up of positions, mainly the covering of
short sales. There is no pick-up in demand for
Treasury issues
with a maturity of more than a year, and there is not
likely to

on

political subdivisions, par¬
ticularly those whose credit is
marginal and those who could not

Today's "king-sized" issues add

local

impact

bonds.

places a tremendous responsibility
on
municipal
bond
dealers
to

an

tax-exemption

severe

on

By JOHN T. CHIPPENDALE, JR.

and

be-,

market

one

pointed

over-the-counter
did

to

*

Over-the-Counter Market
In

in¬

like

now

if

misjudged his market,

Reporter

Prices of long-term Government obligations have been on the

borrowing costs of all State

help

tribute them to investors and in¬

from

comment

some.

investment

Our

today's bond market is

are

without

of

purposes.

Loss

severe.

;

very

towards

the

-

use

Competition for the investment

but

unwarranted

caution when the

urge

non-public

market for

successful underwriters for

unhappy,

*

vm
Points

prospective

municipal
bonds,
consider
the
predicament
of
the
municipal

much

Other

municipal

in

long ago that
talking of a $5 billion

were

the

25

(2757)

a

Roth

Street,

to

securities business.
L.

n

a-P

fL

at 146

West¬

engage in
a
Martin Miller
r\

Ti

vm

SAN

FRANCISCO, Califs
W. Russ, III and Law¬
J. Solari, Jr. have become

Charles
rence

connected

with

Dean

Witter

&

Co., 45 Montgomery Street, mem¬
bers of the New York and Pacific
Coast

Stock

Exchanges.

26

The Commercial and Financial Chronicle

(2758)

Continued

from

labor

3

page

The 1970 Investment Environment
population in 1970

our

high

230 million.

as

The

increase

as

far-reaching

has

For
instance,
the
of the population by
will change significantly. Since our longevity is increasing, there will be more people in
the older age groups and youngrters in the lower age brackets

implications.

distribution

oge group

will

those

outnumber

will

be

This

distribution

cant,

as

labor

"middle-aged"

who

us

1970.
signifiit controls the size of the
is

by

very

More

force.

people

consumption,

more

of

mean

more

con-

cumption means more production,
ctnd adequate productive facilities
Will require much greater capital
end plant investment.
Chart 11,

shown in

As

with

those

available

we

an¬

investment

increased

toward

in

rather than debt on the
part of the American public. According to a recent study, in 1958
savings for equities were about

by
1970 conservative estimates
project it to 87 million, an in¬
of

crease

almost 23%.

thoritative

ject

the

studies

total

Some

an

new

actually

million persons on
American business—eleven

from

pro¬

years

must be offset
increased productivity if we
to compete successfully in the

by
are

productivity also relates
apparent in the
character of our population. With
Four,

to

the

more

We

lull

have
the

at

over

population, and

within

force

looked

now

for

it

1970.

the

labor
With

on

Product

age

standard of living,

in
as

200

in any
dread

m

168

/

.

Now that

we

be channeled in any desired dias indicated by the Soviet

possibly

.

have

Gross

152

136

of

1930

35

1940

45

1950

.

amount of risk

ward the new

our

estimated

the

$312

CHART

Mils.

THE

LABOR

88

bv

much as $13 billion
This potential need of

as

1970.

By of this capital?
A large portion
to 'will be generated internally. De~
on a per preciation and retained earnings
capita basis, the Disposable Per- will provide a great deal of the
«onal Income in 1958 was $1,790 amount needed.
Last year $9.9
and the potential for 1970 on these billion of new
corporate offerings
projections would be $2,250, an were absorbed by investors. It is
improvement of 25.69%. Again, safe to predict that these offergrow

pear in mind that this is related ings will approach $15 billion by
the

power

present dollar purchasing
with no allowance for inWe

Need

Contmumg

More

in

Capital
world

our

1970.

Traditionally

institutional

our

investors have been

„

Why

commercial

banks, savings banks, and insurof

companies.
In recent years
have seen the increasing role
played by mutual funds, pension
amount of capital needed to fifunds, and savings and loan assopance this growth and the prob- ciations as additional important
lems inherent in raising it.
institutional investors.

jnake-believe
s

do

a

and

the

supposition,

We

factors

do

which

capital will be
know

will

some

of

determine

this need for capital.

One, we must replace our plants
equipment as they become

and

old

ance

we

little estimating of the

"Just how much
•needed?"

obsolete.

And,

of

course,

overlook the

ever

we

must

growing

not
of

area

private investment.
/

'

Investment Environment
The

"What

Must
__

Be

Done

To

_______

The maintenance

Make It Right" part of my assignhighly efficient ment I have interpreted to mean
state is very important. The risk the type of investment environanherent in deferring capital ex- ment and financial
machinery, so
ipenditures for new plants and to speak, that will create confiequipment could result in other dence on the part of business,
or

our

plants in

security

reduces

a




35
Source:

1950

45

1950

HacKay-Shields Associates

the

capital moving to¬
and often venture¬

a

dulling inventives for

enterprise!

and seriously restricting, the mo- capital

J
1
Furthermore, the structure of
our personal income ta« should be
re.evaluated. Here again is the
problem of creating: the proper
investment incentives. The the-

I960

II

billion.

potential will
^479 billion.,To put it

to

original

some projects out of which comes
dynamic growth.
Until we aboljsh or reduce the capital gains tax
we
are
encouraging stagnation'

KacKay-Shields Associates

Source:

National Product

nearly

the

This

120

$72 billion to oil our economic
$690 billion, let's examine what machinery in the 1970's is imand I will spend in 1970. portant money, even to our big
Chart IV, you will notice, shows
spenders in Washington.
Disposable Personal Income in
What will be the major sources
1958

in

purchased.

-

;you

•of

invested

It
this

be avoided by remaining

-

«at

1970

can

-

it

distortion.

Het

tax

-

js just twice the 1956 figure. Acon the dollar cording to municipal bond experts,
today and do not our state and local governments
way take into account the this year are expected to raise $8
possibility of inflationary billion in the capital markets and

potential

young

enterprises.

-

based

are

know

we

vigorous

TOTAL

Please bear in mind that these

as

proven

locks the investor in because

average

figures

less

POPULATION

rection,

work
week,
the success in science.
amount of capital goods per work¬
How Much Capital
er
and
a
little more
guessing
Let's turn now to the question
concerning the future productivi¬
ty of labor, the latter two very of "How much capital must be
raised by 1970?" Economists agree
3arge areas of surmise.
Chart III, you will notice, shows the
need
will
be
great.
The
Cross National Product of $437 amount should average around $45
billion for 1953 and the projected, billion annually throughout the
increase to $690 billion in 1970, an 1960's.
It is thought that in the
increase of 57.8% in this 12-year 1970's corporate capital expendiperiod.
turcs will reach $60 billion.
This
the

and

to

growing industrial resources can

shown

the size of the labor force but

io

productive

-

must, take off

as

we

non

A fifth and final clinching reason for increasing productivity as
well as a higher return on capital
investment lies in the rise ol
Russia's economic challenge. Her

assumptions, not only

more

these

labor force to avoid lowering our

be expected in the way of
jiroductioii. Let's take a look at
the potentials of our Gross
Chart III. Here

successful, mature

of capital from

investments

must of necessity be sup¬
ported by a comparatively smaller

inay

Hational

through¬

has been a capital
gains tax which restricts the flow
out recent years

groups

to determine what

now

One of the roadblocks

changes

older and more younger per¬

sons,

these two factors tied down, it is

important

more

>

world markets of the future.

'

Production Potentials

Reforming Tax Structure

battle

hall will require major planning.

Thursday, June 18, 1959

As wage rates

billion investment.

now.

r

complete

.

worker.

rise they obviously

au¬

well over $0
the payroll of

to

prepare

.

equivalent investment for

least

each

substantial

a

to

equities

Three, we must make every ef¬
increase in
the size, of the labor force, al¬ fort to increase productivity. And
this means additional capital in¬
though the growth here will be
flightJy less percentagewise than vestment. A Twentieth Century
total population growth. In March Fund study has estimated that a
<of this year our labor force was 1% increase in capital per worker
estimated to be 70.8 million and would create the need for a $4

ticipate

have

plans to light off the disgruntled
trend or the opportunists. Even hiring a

The encouragement of a high
level of savings as a more and
important source of our investment requirements is essen12% of total personal savings. The tial as is the ability to coax these
companies', or possibly other na- figure may more than double, to savings into risk ventures.
lions', securing a a competitive 25% of personal savings, by 1903.
This encouragement can best
advantage. This must be avoided This will mean a greatly increased be accomplished by the maintenat all costs.
number of shareholders which ance of a climate favorable to inTwo, enough capital for our ex- already approaches the 10 million vestors. In this connection, the
panded labor force must be pro- mark.- This stockholder growth greatest impact for either a good
vided.
Today there is a capital will create many problems for the or bad climate is played by our
investment by industry in each people concerned with sharehold- own Uricle Sam. There lies in the
American worker o£ about $14,000. er relations.
They will become hands of
government, the
In some industries such as the even mol-e essential to their vandestrov incentives
utility, oil and steel, this invest- ous
corporations.
Stockholder basic powei 10 aesiroy incentives
ment runs as high as $100,000 per meetings will cease to be drab for enterprise and investment.
worker. Over the years this ever affajrs an(j the larger companies Likewise, enlightened government
increasing investment has enabled
.
.
.
Heirship in nronare
nolicv will allow a free flow of
our industries to pay continually will find it desirable to prepare policy will allow a tree How ot
higher wages and, at the same a major show, including product capital funds so essential to fitime, compete effectively in world display,
and occasionally
will nancing our future growth.
markets.
To maintain our posiCHART I
tion, we must continue to make at

—And What Mast Be Done
project

and

capital for investment.
There
is a
pronounced

.

FORCE

1970

Volume

189

Number

5856

The Commercial and Financial Chronicle

.

(2759)
ory of a

for the

progressive tax is sound,
pay is obviously
higher
income

higher

ability to

brackets. However,

of

according to many economists. It
is easy to imagine the satisfaction
_

continuing,

inflict

to

dead-weights

over

any reduction here would

capital expansion.

.

plants and equipment, es¬
pecially those which "age" more
because ' of

technological

Stop Government Planning and
A

less

Inflation

is

toward

r'.T.4

•;

of

what

extreme

national

result

m e n

cdn

regimentation.

Anothier
maintaining

factor

to

v

be

good invest-

a

pressures.

continued

infla¬

However,

the

.

most

a

useful
^

•

proper

in

-

r

a

been

;

.

investment

Investor

...

pressures which

be

1970

financial

No

system

of

is

this

exempt
responsibility.
Our

must

•

banks

continue

to

policies which have enabled busi¬
of tightened credit

tinue

to

they must

support

their

loan

add

much to

Role

The
the

envi¬

relations

could push prices

posed

of

draw

groups

CHART

the

or

pect

at

the
the

raising
creative

one.

money,

job

is

the

to

educate

:>

■

-

550

'

1

:

'

V;

■
■

...

550

.

-

J"

'

"

.

'

•.

:';\h

w

;■
.-L- •'

.

/■

v

.»

■.

about

investors

the

' 7.'..

"

'•.*

..

V■'

130

1

35

Source:

270

:

i

•

,

,

1

15

55

*

CHAR£

■"

■

;V'■>;

1

I960

Thacher, Superintend¬
New

York

501

Eisenhower

City,

report,

of 4%

in

his

and manual

message

whereby

real

its

estate

guaranteed

eco¬

hold¬

Section

Readjust¬
Act,
and
possibly
other
holdings would be ex¬
changeable, on a par for par basis,

1

65

130
1970

for

United

Bonds

States

-

IV

Investment

Treasury

Series

$ Bils.
510-

only

The

ex¬

for

1%% Five
States
Treasury

allowable

value of the
cost.

admitted

2%s has been

The

discount.

partment would be, in the event
FNMA exchange plan mate¬
rialized, in regard to the value to
be reported by authorized insur¬
ers

the

as

cost

of

authorized

the

insured

insurers

FNMA
in

ex¬

basic

to

be

that

the

market

bonds surrendered in

provides
reported

the
on

an

value

acquisitions.
from this

55
.

I960

in

exchange

consideration

to

MacKay-Shields




Associates

be

The

only deviations

policy, in the past,

recognition of

new

were

a

general situa¬

tion due to special

circumstances,

such

Source:

of

the disposition there¬

of and establishes the cost of

1950

on

instance

as,

pressed,

when

to

prices

enable

without

surplus. This
and in

1951,

involved

now

under

the
con¬

At that time the 2Mt%
of 1967-72 became
eligible

conversion

1975-80.

part,

The

into

the

2%s

of

21/£s, for the most

acquired

were

above

were

companies

withdrew

ernment

par

its

support
from government
bonds, the mar¬
ket price of these bonds
dropped
below

To

par.

avoid

statement

losses

in
surplus on these ex¬
changes of United States Govern¬

securities,
required

the

to

use

companies
the

amor¬

tized value of the 2%s as the cost
of the 2%s acquired in substitu¬
tion thereof. However, for income
tax purposes, the companies were
required to consider the 2^s as

having been disposed of at '100.'
"In light of the
foregoing, the
following ruling is hereby adopted
(pursuant to the provisions of
Section

91

of the

surance

Law), as
basic policy:

our

"A
sured

eral

the

New York In¬
an

exception to

mortgage

or mortgages in¬
guaranteed by the Fed¬
Housing Administration or
or

Veterans'

acquired

by

from

Administration

or

authorized in¬
Federal National

any

the

Mortgage Association in exchange

policy of this De¬

partment has been and continues

.

portfolio

sideration.

surer

Describes Exchange Terms

"The

-

their

happened in the 30's

were

are

change for the 23A% bonds.

.

guaranteed FHA

or

adverse effect

an

ment

but

V/2% notes
presently selling at a substan¬

tial

by

15

improve

"B"

United

amortized

DOLLARS

J

1970

greatly expanded econ¬
omy and a prosperity greater than
this country has ever known.
;

These 2%% bonds are

marketable

Year

asset

2%%

mortgages acquired from

t

in

a

mortgage, and when the United States Gov¬

under

of the Servicemen's

•

TOTAL

540'

1910;

for

S. Government bonds

the

35

growth, the possibilities
are

exchange of insured

"Inquiry has been made as to
what the requirements of this De¬

*

to our businesses for their further

bonds

are

$ Bils.

task,

necessary

2%%, series B, non-marketable U.

changeable

1957

the

sure

Holdings for Certain U. S. Issues

ment

.'

DISPOSABLE PERSONAL INCOME
CONSTANT

am

easy

capita! can be raised.
With an
ample supply of funds available

for

budget

Notes.

1930

I

an

by authorized insurers

1975-1980.

Associates

;

.

then

)
problems,

solve these

can

2%% bonds

non

-.;;

we

Dept. OKs Exchange of

FNMA
-r

MacKay-Shields

■.

~.'

Z

.

'

I9H0

If

and this will not be

are

ad¬

restrict the essential flow of
cap¬
thorugh the imposition of a
capital gains tax.
It must allow
business to generate new
money
for plants and equipment
through
favorable write-offs on its present

facilities.

the

to

maintenance of a sound in¬
climate is fundamental.
Our government must not
destroy
the incentives of private enter¬

stated recently: "there are indica-:
The latter
tions that the Federal National
same

ings
•.

;

VA mortgages
acquired from FNMA

Thomas

loans

-rac

-

this

due 1975-80.

nomic

; /ri"

;
..

/

410

V

vv

make

war

raising this investment capital,

President

TV'T

.«•

cold

capital formation essential.

Mortgage
Association
(FNMA)
may adopt a program, endorsed by

"

1930

to

trading

is that all of the fi¬

Department,

'

«%

:"

productivity. Foreign competition
growing challenge of an

economic

ital

in¬

vantages of securities ownership.

690

■.

'

mo

■

when

head fixes terms for

-

'v.-\.

day

for

difficult

$ Bi Is,

'

'

::
"■

v''

not

ent of New York State's Insurance
r

labor force with

Anticipating FNMA action, New York Insurance Department

,V.: "

270

is

FNMA

TOTAL
••

the

prise and investment through un¬
favorable tax policies* It must not

as¬

community gives every
legitimate kind of encouragement

DOLLARS

:

to
se¬

important

an

H. Y. Insurance

$ Bils.
-

existing

environment
It

the

concern

for

V..

is

our

or

690

func¬

one,

nancial

III

1957

for

solving
of mechanical
problems; however,

It has been said that,

he is the architect of
corporations.

Their

important

concerned

GROSS NATIONAL PRODUCT
CONSTANT

climate.

not

a

of

vestment

favorable

more

already have been made. We

cap¬

attempted to

necessary tools and machines, and
most important to increase our

in

help

can

a
completely mechanized opera¬
tion. Experiments in this direction

to
Whether

his

of

have

Of the many problems involved

savings

the various exchanges will be

on

lowest possible cost.
investment banker is

new

a

markets

visualize

ital, it must be raised intelligently
Since

exchanges

most

vestment.

falls

equity

to

The immediate liquidity
available on thousands of differ¬

investment

new

will

curities.

next

corporations,

this money be debt

with

nearer

our

investment bankers.

and

a

average

the next.

the

stock

is

may
over

and the

bankers

effectively channel

provide

Investment Banker

for

a

more

ent securities

in

in¬

;

points

as

equipment, to support additional

respon¬
*:

these

on

investment

investment

banks can
sound investment

necessary

the

Well-informed and

enable

tion

'

task

capital

are

a

(5)

further to create

smaller,

We

again

economy

capital needed to

show that this money will be used
to maintain our present
plant and

vestment research.

The

decade,
in the past
decades, of raising

as

necessity for good
stockholder relations. .The objec¬
tives- of these traditionally
op¬

are. many

policies,

better

on

half

present

The

members

sible representatives.

con¬

our

support this giant
$45 billion per year

Full disclosure of informa¬
An emphasis

we

population of 215

a

than

more
as

decade.

into investment.

to expand and grow. In times

ness

is

produces.

tion.

Emphasis

pursue

This
much

(2) Careful policing of broker¬
practices.

(4)

Conservatively,

million persons producing a Gross
National Product of $690 billion.

continue to in¬

age

envi¬

segment

1970 economy.
have estimated

ethical standards.

favorable

a

investment

"right."

v

are
equally important.
fact, good labor relations might

be considered

period of relatively stable prices.

Yet, in the background

the

ronment

climate.

of prime importance but, on the
other* hand; a corporation's labor
In

have

to

a

relations

months

progress

relationship

(3)

tive

be

Relations

ronment.'

climate is the control of inflation.

few

bound

is

make

Corporate Labor & Stockholder

The

past

its

A

company and the finan¬

have attempted
point up the possibilities of our

to

(1)
Self - regulation
by
ex¬
changes and dealer organizations
aimed
at
obtaining the highest

one.',■

from

Federal

our

much

economic tool.

ing"

investment

sound

a

regarding
thereof.

a

.

.Corporate management, too, has
equal responsibilities in maintain¬

„

important

lack

or

,

from

"

,

climate. *.Our

-

restricting in¬
investment by crip¬

for

of

informed

our

'

aid to

booms,- could

a favorable investment
climate." r And, further, it ■ should

centives

Our obligations
clude;

corporation has an obligation
keep the financial community

even more
marginal customers as
balanced" budget
over
the
long well as
the corporations of prime
term; using deficits and surpluses
financial strength. With construc¬
to
retard
recessions
or
control

markets in

pling taxes. '

yy

financing i produces

,

tionary

Therefore, the government, should
juse its efforts to maintain free.:

restrain itself

-

leave

.

as. an

t.

deficit

example

headaches

through

Because

The fiscal results of

desired,

-

an

->v

•

Government

managed economy.
A
look at the government's efforts to
control the free markets for. farm
is

Financial Information

to

Summary
In summary, we

create
sound,
solid,
economic
structures which fit in with the
past and last into the future, i.

respect

The financial community itself
has >• far-reaching
obligations
to

a

products

mutual

tion

—

; yet., prevalent
underlying trend

the

of

one's employees.

tries -often
without comparable
increases-in. productivity.
It is a

-

obvious,

problem

stock

stock

relationship

with

between

for years.

-

v;?;

strength of the

that we ob¬
tain, appropriate legislation regu¬
lating labor's, power, similar to
that which- has regulated business

on

rapidly
change.

a

the

necessity-,- therefore,

Another way to accomplish this is
to provide more favorable .write¬
offs

be. the

labor■* unions.

of

purchase At least he provides the financial
holdings of bricks with which they are built.
employee pension plans.
Basic¬ With this function goes the re¬
ally, it is sound business to have sponsibility of the architect to
and

semi-t monopolistic
power,
they^ have been able to force con¬ cial community which is based on
accurate
directly., tinued higher
and
complete
informa¬
wages oh Our indus-"

..

for

institution

A
ap¬

i

•

funds

to

pears-

of* large

free "enterprise;
.v;
• this
As for the corporate income tax,
free

present period
rates and a quite

our

wa^s in line. ;
The* cause*G$nhis situation

two

our' system

on

the

would hold

our.

these

the

rising wage
possible, steel strike in the offing.
But,; at the" same time, unemploy¬
ment is .rather widespread.
Tra¬
ditionally this surplus of labor

of, say, 50^ would do much to
free investment capital with little
loss of revenue to the
government,

derived by the Russians

cheapen

plans

lAn.exaiftple is

ceiling rate

a

further

and

dollar.

in *' the

greater

27

de¬

to

for

23A%y Series B, Non-Market¬

able

United

Bond

or

States

Government

Bonds, due 1975-89, shall

be deemed to have been acquired
at

a

cost

said bond

equal
or

to

bonds

par

value

given in

change therefor, but in

no

of
ex¬

event

shall such cost exceed the princi¬

pal amount owing
gage or

upon

the mort¬

mortgages at the time of

acquisition by such insurance or¬

ganization."

The Commercial and Financial Chronicle

28

tor knows it!

Nor was Keynes

In Defense of

Keynes

spondent asserts late British economist opened up tremendous
new
vistas for economic analysis and policy, and provided
useful tools even for those who disagreed with him. Main¬
tains

Keynes' made

supreme

contribution in alerting people to

Chronicle:

book, "The Failure of
Economies/' by Henry
on

and

business

economic affairs for "Newsweek"

Magazine, has
receiving
a good deal of

'

:

• • -

<

•

*/

been

enthusiastic

-

attention

financial

the

Yet,

wholehearted

acceptance

am

litt has to say
as

show,
a

23

appear

after

that

Keynes,

:

!

has

failed

to

observe

Keynes' warning about the diffi¬
culty of "escape from habitual

Peter L. Bernstein

has

Mend Some Fences
One

the

of

lessons

have

I

expression."

of

modes

will

learned about this business is that
you

"The Economic Conse¬
of the Peace," written
he had resigned as Lloyd

pensation
his

is

going to hail from.
Over the years I have acquired
quite a few friends in various
sections of the country, as well
as within a radius of several hun¬

The

remembered,

best

I

will

he

if

do

to

the

of

conscious

am

always

try

good job.

a

great

this

investment business in

1925

firms:

but

investment

ethical

had

we

they

-

coun¬

back in

When I started out

try.

confined

their

activities primarily to institutional
accounts and serving a very select

clientele.

individual

limited

and

Today, conscientious, trained, and

skilled representatives of

-highly

people like to be
will not be for¬

doing busi¬

investment firms are

with all types of investors—

ness

who

those

much

have

the

of

have
only a very small share—and in
my own small way I surely think
I have had quite a few rewards
of my own—both in friendship as
world's goods and those who

you

well

business.

as

gotten.
•

Contribution

Supreme

that

remember

business

friends,

change that is taking place in the

major

non-Keynesians recognize his
major contribution to economic
thought, even if they would pur¬
sue some objectives differently/

lack

never

connections, customers, and com¬

know where your, next

never

customer

George's main advisor at the Ver¬
sailles
Conference,
one
of the

Hazlitt's criti¬
ago, but that Mr.

years

Hazlitt

Mr.

elusion.
Hazlitt

would

cism

turbing con.

book,

a

quences

himself, wrote Mr.

and dis¬

arts,

.

saying nothing new."

It

I shall
lead to

rather curi¬

ous

.

pect, between a belief that I am
quite wrong and a belief that I

of

what Mr. Haz¬

can,

By JOHN DUTTON

fabulously successful
operator on the stock exchange
who made a fortune lor himself
and for King's College, Cambridge,
author of the incredibly prescient

a

...

.

in

*

p r e s s.

enthusiastically to

a

designers of the Interna¬ dred miles distance from my office.
tional Monetary Fund and
the As
from
you build your clientele, you
Bank, ancl
chief will discover that people will
and expression. The ideas which International
British
negotiator on
the $3,- think of you if you will only think
are here expressed so laboriously
are extremely simple and
should 750,000,000 loan made by the of them once in a while. I try to
be obvious. The difficulty lies, not United States in 1946.
write short letters to old friends
in the new ideas, but in escaping
In its ultimate impact, his book even though I don't do business
from old ones which ramify, for
was
thoroughly ' practical,
too. with them very often. They ap¬
those brought up as most of us
Many
non-Keynesians use
the preciate this thoughtfulness, and
have been, into every corner of analytical
techniques which some fine day the telephone rings
our minds.
Keynes developed to follow na¬ and there is either a new cus; ; "Those
who are strongly wed¬ tional economic trends and to de¬ tomer they are sending me, or an
for -some
securities
for
ded to what I shall call 'the classi¬
velop public and private economic order
cal theory' will fluctuate, I ex¬
policies.
Even more important, themselves, or a relative. If you

A recent

writer

of

man

was

the

struggle of escape
habitual modes of thought

Editor, Commercial and Financial has been

New

unaware

generously and

danger that, contrary to pre-depression economics, our
system does not have inevitable and immutable tendency
toward full employment and maximum production.

the

"long hair"

a

tower,

really about.
who gave himsell

He

the

Hazlitt,

ivory

what the world was

Keynes. Corre¬

severely criticizes the theories of Lord

the

in

Henry Hazlitt's new book

Peter L. Bernstein takes issue with
which

>

Thursday, June 18, 1959

.

.

trouble—and the doc¬

from heart

THE EDITOR:

LETTER TO

,

.

(2760)

Take A

Trip Occasionally

the

of

One

things

Opens New Branch Office

;

enjoy

I

as

/ SPRINGFIELD,

111.

—

Crutten¬

salesman of securities is the op¬
den, Podesta & Co. has opened a
people to the portunity this business affords me branch office in the Ferguson
to take an outing once in a while" Building under the
direction of
danger that our system does not
have an inevitable and immutable and just go around and visit with; Stanley B. McFadderi.V

Keynes'

was

contribution

supreme

a

this: He alerted

old
friends.
About
once
Maynard
tendency toward full employment some
For it is irrelevant to say, as
Keynes' extraordinary and con¬ Mi*. Hazlitt does, that Keynes was and maximum production. Pre- every six months I get into my
Jesup & Lamont Partner
car and take off for a little town
troversial magnum opus, "The wrong because he offered pre¬ depression economics had been at
J. Kenneth Hall on July 1st will
General Theory of Employment, scriptions which would be danger¬ fault in believing that a job for about two-hundred-fifty miles,
from my office where I have six become - a
partner in Jesup
Interest, and Money," which first ous in a time of prosperity, such everyone seeking work will al¬
customers.
We
do
business
by Lamont, 26 Broadway, New York
appeared in 1936. A full hundred as in our postwar world. When the ways and automatically be created
in
our
technologically intricate telephone and mail and some of City, - members- of the New York
pages longer than the book it pur¬
book was written, millions of peo¬
these people I have known for Stock Exchange.-' "
ports to destroy, Mr. Hazlitt's book ple were unemployed and starv¬ and money-oriented system. Thus,
years.
On these trips
I
is- unquestionably
a painstaking ing while factories lay idle and well-respected habits of thrift and many
don't try to sell securities—in fact
job.
orthodoxy
which
are
business enterprise Was strangled financial
T. M. Whitener Opens
we
talk about almost everything
It is, however, really rather old
vitally essential in times of high
by fear and bankruptcy.:
.
(foycciul to The Financial Chronicle)
else but stocks and bonds.- One
hat.
Criticisms and critiques of
may lead .to disaster
In 1936, Keynes could not visu¬ prosperity
of
these
customers
is
the best
HICKORY, N. C. — T. Manly

about John

written

.

,

.

„

,

now

must by
into thousands. They

General

"The

have

run

Theory"

alize

the

backlogs of
would exist for

enormous

which

demand

activity is heading

when business

downward.

fisherman

you

life—I've

k

been

met in your

ever

out

with him for

carefu 1, scholarly consumer goods in 1946 -— nor
If Mr. Hazlitt were to achieve
a
day's bass -fishing and I've
pieces to polemics of intense fury. could lie picture the tremendous his
objective
of
obliterating learned
more
about
patience,
Keynes, himself, was not above liquid savings which people would Keynes' writings (and enthroning
planning, and how to land a big
the struggle and poured out arti¬ accumulate
Mr. Hazlitt's in their place, pre¬
during the war to en¬
one from him than all the books
cles and rebuttals right up until able
them
to
spend money so sumably), then the anti-recession¬ I ever read about salesmanship.
his death in 1.946.
v
freely. Thus, he underestimated ary policies pursued from the fall I usually come home very rested,
the active role which consumer of 1957 to the spring of 1958 would
completely relaxed and loaded
V
New Vistas Revealed
spending could take in influencing have included the following:
with fruit from a farm or some¬
But with the passage of more
business
activity.
In
1936,
he
body's orchard. I am also filled
(1) .The Government would
than 20 years, professional econo¬ could not visualize the tremen¬
with good ideas about the future
have cut its expenditures sharply
mists have, by and large, made dous shortage of new plants and
of this country and
the people
and/or raised taxes in order to be
their
peace
with Lord Keynes. machinery which would exist in
who live in its small towns and
sure
that the budget would re¬
Everyone (including Keynes' most 1946, not only in the United States
who still save, invest and have
main in balance while revenues
enthusiastic adherents) recognizes and Britain,
but in the whole
were
declining, and unemploy¬ very little use for idlers, wasters,
that the book was replete with world.
Thus, he overstated the
or
people who believe they can
ment was spreading.
the errors, contradictions, and con¬ need for governmental support to
get something for nothing.
fusions typical of any pioneering the economy.
(2) The Federal Reserve would
In 1936, he could
On a recent trip I visited an¬
have raised interest rates to dis¬
from

range

work in human

thought.

But

ev¬

not visualize the fundamental and

(except Mr. Hazlitt appar¬
also recognizes that the
book opened up tremendous new
vistas for economic analysis and
policy, while it also provided use¬
ful and effective tools of analysis
Which strengthened and enriched
the theory and practice of econom¬
ics by those who fundamentally
disagreed with many of Keynes'

vitalizing redistribution of income
which would have
occurred by

eryone

ently)

courage

business borrowing, there¬

of

by hoping to force liquidation

other

just

friend

and

magnificent
all too short

1946.

errors on every page.

.

Many

Keynes' ideas, which ultimately
the

formed

theoretical

basis

for

wrote:

my

book is chiefly addressed
fellow economists. I hope

that it will be intelligible to oth¬
ers.

I cannot achieve my

ob¬
of persuading economists to
re-examine
critically certain of
their basic assumptions except by
a
highly abstract argument and
also by much controversy....
.

...

ject

-

"The

composition of this book




under

the

Cruttenden,

—

has

Co.

office at

branch

610

opened
a
Main Street

management of Hiram

Smith.

C.

Now Baker,

Warden

CLEARWATER, Fla.—The firm
of

1985

Drew

changed

and;

Cosby

name

Street,

Baker,

to

Company,
-has; been

Warden

and

Company.

Johnson, Lane Branch
LA

GRANGE, Ga.

—

Johnson,

Lane, Space & Co. Incorporated
has opened a branch office at 14
North

Court

the
Griggs.

under

Square

management of James R.
:

-;v.

Philips, Rosen Partner
Philips, Rosen & Appel, 55

Lib¬

erty Street, New York City, mem¬
bers of the New York Stock Ex¬

change,

on

admit
limited part¬

June 18th will

George Lederman to
nership. X /

'

•

.

and

effective

inflationary

description of
After

turned

in

our

sour

and silly,

circulating

member, when a customer gives
you an order and he acts upon
your advice, he isn't buying some

Vice-President,
Bernstein-Macaulay, Inc., New

Executive

i

York; Financial, Economic
and Industrial Consultants.

insignificant
little

JOLIET, HI.
&

Podesta

Building

in

under

of James B.

Cruttenden,
opened

has

Co.

office

branch

—

a

Chalstrom

the

the management

Mclntyre.

recommended

when

a

cause,

years

antibiotics

be¬
later, the patient no
longer has the flu but is suffering

something

111.

MACOMB,
&

Podesta

branch

Co.

office

at

patient had the flu

wards

under the

Grant B.

—-

has
438

Cruttenden,
opened
South

a

Ed¬

sub¬
good

The

old

saying,

"To

am

the

is

certainly

me

one

of

the

My

Certainly the whole progress of
mankind has been based upon that
can

offices

at

2317

Forms Avery

Marrin Assoc.
Marrin

engaging in a securities busi¬
from offices in the Enterprise

Building under the firm name
Avery Marrin &

of

Associates.

in all of human

family, my house,
my
business, my bank account,
these are the things that register
with
all of
us.
And why not?

little

from

Washington Avenue.

is

I

one

business

ness

the most important person in

world",

T. L. Jarvis Opens
EVANSVILLE, Ind.—Thomas L.
Jarvis is conducting a securities

TULSA, Okla.—Avery L.

Remember the Little Things

management of who

Shanklin.

quite

judgment.

behavior.

Branch

He is usually

stantial to your integrity and

most solid truths

Cruttenden Opens

of

is

that

trinket

consequence.

entrusting

Cruttenden, Podesta Branch

system."

Thus, to reject Keynes' analysis
of
the
depression1 because the
problems we face today are dif¬
ferent, is like criticizing a doctor
who

about the securities business. Re¬

PETER L. BERNSTEIN,

process.

"modernist stuff, gone wrong and

"This
to

WIS.

&

Podesta

.

the
the
what we popularly call New Deal war, aware that the economies of
the
world
were
fundamentally
economic policies, are held up to
different from what they had been
apparent ridicule.
He accuses
in the 1930's, he wrote:
Keynes of bad writing and exces¬
"I find myself moved, not for
sive technical language, and, fi¬
the first time,
to remind con¬
nally, he claims, "What is original
economists that the
in the book is not true; and what temporary
classical teaching embodied some
is true is not original."
'
permanent truths of great sig¬
Curiously, on the very first page nificance."
of "The General Theory" Keynes
He
referred
disparagingly to

of

New Cruttenden Office

_

..

right

securities business.

RACINE,

a

home. I spent an
Thus/he overestimated the inventories and consequently a re¬ hour or so with him and his
The
tendencies of advanced capitalist duction in the price level.
family.
We - walked
over
the
societies to save excessive amounts. higher interest rates would also
grounds, I visited his study, talked
have been designed to encourage
with him about everything
Naturally Keynes understood
but
consumers to spend less money in
securities. and when I got up tothe - inflationary implications of
the stores and to save more.
most of his proposals. Indeed, he
leave, he said, "When you get back'
(3) Widespread wage cuts to the office find fifty good bonds
wrestled
with
inflation
as
the
chief architect of Great Britain's would have been encouraged to for me." People will only do busi¬
premises and most of his prescrip¬ wartime economic
increase
employment opportuni¬ ness with you if you have given
policies. These
tions for economic illnesses.
'
■
■'
-v
he first laid out in a little book ties.
them
good
investment
advice,
In
the
published in 1940 and entitled
Ridicule Challenged
spring of 1959, Mr. good service, and you have also
"How to Pay for the War."
This Hazlitt, would our output of goods demonstrated to them that you
Mr. Hazlitt claims to find ambi¬
book, written for the general pub¬ and services be making new highs have always acted in good faith.
guities, inconsistencies, and out¬
There is something very personal
lic, is a brilliantly clear, simple, oh all sides?

'

a

Union Square to engage

216 Vz

in

had

client who

himself

built

Whitener,.'Jr. has opened offices
at

word—EGO.
remember

The

these

man

things,

and who is a warm human being.

Godfrey Hamilton Magnus
Godfrey,
Co.

Hamilton, Magnus

&

Incorporated is engaging in a

securities business from
101 Park Avenue,

offices at

New York City.

Raymond H. Godfrey is a

principal

Volume

189

Number

5856

The

...

Commercial and Financial Chronicle

(2761)

to common issues
previously held,
including: Arden Farms, to 10,000
shares from 7,000; Brown & Bigelow, to 8,000 from 7,000; Central
Maine Power, to 15,000 from
12,000; Chesapeake & Ohio Railway,

Mutual Funds
By ROBERT R. RICH
An

oft-raised

mutual funds

quite

can

common

question in the marketplace is just how the
expected to react to major adversity. It is

to dismiss their

stability in the stock market slide
the decline that got underlay two
in this long bull market. Yet it may

of 1957 with the argument that
years ago was

merely a pause
well be that the considerable erosion

very
took

of

stock

values

place in the last half of 1957 would have turned into

a

pede but for the stabilizing effect of cool-headed professional
agers of the funds.

that

stam¬
man¬

During the past year the marketplace has been treated to
another example
of their long-view policies, which contrast
sharply with the in-and-out-hit-and-miss operator, who sees only
the ripples

who

more, much more.

This might well have been a time for
portfolio managers to
create ;<new,^institutional favorites, latching onto electronics and

Space Age/stocks, for example.

These might have replaced the oils
as institutional favorites. Yet it is a fact
that, on balance, the major
investment companies have been buying petroleum shares.

Thus, Standard Oil (New Jersey) continues to be the common
stock most favored by institutional
holders, just as it was in 1958
and 19571: Yet that stock is down 7% from a
year ago.
Texaco,
as another
example, ranks seventh among the favorites of the in¬

stitutions,^unchanged from lasf
eighth spot it occupied two

and actually up from the
ago.
Over the last 12 months

year

years

Texaco stock has climbed a mere 7%,
compared with a 200%
in Motorola (to cite a representative electronic

No

doubt,

jump

issue), which is

held by a relative handful of institutions.

argument could be made that portfolio managers
lack flexibility, staying with a group that has made
little, if any,
progress in a stock market that offered numerous upside
an

demand

institutional

nounced

ft

ft

ket large holdings representing an investment in
■
V'"

basic growth

a

.

Of the 13 institutional

favorites,

continue, as earlier in
1959, to be oil stocks — Jersey, Texaco, Socony Mobil, Phillips
Petroleum, Gulf Oil, Standard Oil (Indiana) and Standard Oil of
California. Indeed, the bare statistics would indicate that invest¬
ment

seven

have added oils to their portfolio on weakness,
for only six oils were among the 13 favorites a
year ago, Standard
of California having climbed to the 13th
spot from No. 15 during
the past year. And two years ago only five oils were
among the
managers

favored 13, Stanolind having moved up in the interim.
In

An

option

sponsors

to

purchase

the

of three established

mu¬

tual funds with aggregate invest¬
ments of about $55 million was

steady
buyers of other prime equities. Along with closed-end funds, in¬
surance
companies and other institutions,, their second mostfavored stock is General Electric, just as it was earlier this
year,
last year and two years ago. General Motors
occupies the third
slot (fourth two years ago), American
Telephone & Telegraph
fourth (third two years ago) and E. I. du Pont de Nemours & Co.
is fifth (sixth two years ago.)
:

is

It

interesting to note that not a single railroad appears
the favorite 50. 'Union Pacific is 51st, down from the 46th
position in 1957. And even more interesting is the growing invest¬

among

ment status of U. S.

Steel, which has moved to No. 14 from 36th in

share

per

increased

$13.93 to $15.70.
New
holdings
wealth

hem,

to 37th.

up

The
The

Income

It

was

not among the top 50 in 1957.

Mutual
Fund

of

Funds

Boston,

Inc., in its report for the/quarter
ended
April
30,
disclosed
the

Fund,

with

backlog

in

vestment

$3.7
a

million—have

agreed-payment
of

programs

a

in¬
than

more

$130 million.

Sponsorship of the funds will
acquired through purchase by

be

First Mutual of

91% stock hold¬

a

ing in Renyx, Field & Co., Inc.
First Mutual is the principal dis¬
tributor for shares of Nucleonics,

include

from

from

common

Insurance

its

portfolio

stocks:

of

American

Co.

(Newark, N. J.),
1,000 shares; Carrier Corp., 8,000;
Cluett, Peabody & Co., Inc., 3,000;
Columbia Gas System, Inc., 10,000; Continental Baking,
5,000;
Denver i&

Rio

Grande

Fire Insurance
Mohawk

Chemistry

American

Electronics

&

Shares,

United

States

Steel

12,000;

craft

and

in

new

will usher

pressures

of

steadily rising
construction
activity during the
next 15 years, says the Milwaukee
Co. in its June report.
It notes
a

that

construction

have

the

era

set

14

expenditures

records

new

past

in

each

of

despite three
recessions during that span. The
investment company suggests that
construction stocks are attractive

today because of the industry's
steady growth in the past and the
optimistic

contends

investors

outlook."
now

It
find

can

"a host of outstanding companies
in the lumber, cement, steel, rock,

aluminum
indus¬
and
offer profitable ven¬

products
tries"

elected
Fund.

E.

Western

that

tures.

ft

ternal

internal

and

development, should
at

faster

a

United

rate

States

economic

move

ahead

that of

than

the

after

Samuel &

ft

ports for
April 30

Canadian

of

Com¬

Investment

analysts at Montreal

of

the

fifth

the

on

founding

of

Canada, Ltd.,

the first of the

eight publiclyregistered Canadian invest¬
ment companies formed to enable
U. S. investors to participate in
as

held

diversified

mutual

in

ments

a

invest¬

fund

broad

Canadian

enterprises,
these points:

A

Common Stock Investment Fund

Investment

•

objectives of this Fund
are
possible long-term
capital and
income
growth for its shareholders. '

Prospectus

upon

he

of
made

(1) These eight funds now have
up their Canadian portfolio

investments

to

total net assets

of

about

$410,000,000, managed in
behalf of
129,000 U. S. share¬

the

world

economies of
the
position

grow,
Canada in world

Chicago




—

Atlanta

—

Los

Angeles

$11,048,000,

over

com-;

Asset

value

share

per

rose

to

months ago and $10.84 a year ago,

vestors during the past six months
totaled $4,029,000, a new high for

similar period.

market

trade

will

of
be

On April 30,

the

fund
the

of

was

exceeded

fund's

cost

in¬

Total

stocks.

common

value

by

in¬

$2,-

497,000.
additions

Growth

Fund

the

to

during

three "'months

Putnam

the

^included

,

past
20,000-

shares of Aeronca Manufacturing

Co., 2,300 Alberta Gas TrunklineCo., Ltd. "A"; 7,000 Carter Prod¬
ucts; 10,000 R. L. Crain, Ltd.; 5,000 First National Bank of Miami;
5,400 First Security Corp. and 6,000 Universal Winding Co.
Eliminations

included

9,550

shares of Arvida Corp.; 3,500 Bal¬
timore & Ohio; 3,885 Boston Her¬
ald-Traveler Corp.; 3,200 R. R.
Donnelley & Sons Co.; 4,000 Hous¬
ton
Corp.;
5,000
International
Utilities Corp.; 3,000 Royal Dutch
Petroleum;
5,000
Southwestern
Public Service,, and 60 Superior

(California).
ft

the
1

of

The Quarterly

Fund, Inc.

ft

ft

Report of Texas

shows total net assets

maintained.

However, he added:
"Foreign trade through the years
will become less important to the
Canadian economy, but this will
result

internal

from Canada's greater
growth rattier than from

adverse

external

more

developments."

up

29%

in the

12 months ended

May 31, 1959, rising from $30,314,106

to

an

all-time

high of $39,-

069,671.

Major portfolio changes during
the quarter included purchases of

(3)

request

Lord, Abbett & Co.

re¬

$16.78," compared with $13.20 six

Oil Co.

As

Canadian

taxation

offers

important inducements, especially
the absence of a capital gains tax.

^New York

Fund

Shareholders increased to 3,800,
against 2,800 six months ago and
1,700 a year ago.
.
;

range

built

(2)

Fund

ft

the six months ended
an increase in total net

to

assets

New

Addressing U. S. and Canadian

holders.

Affiliated

ft

Growth

pared with $5,370,000 on Oct. 31,
1958, and $3,130,000 a year earlier..

any

White

ible

Stores, Inc. 4%%

debentures,

convert¬

Rohm and Haas

Company, Monsanto Chemical
Underlying forces bearing
supply &nd demand for stocks Company and Stauffer Chemical
have
recently been more
con¬ Company.
Eliminations included
(4)

on

paying "
cents

per

22,

of

trust

at

the

'

a

Life

dividend

share from

1959

of!
net

payable
holders

to

certificates of record
close

of

..

business

June 19,1959.

tsilateac/tulcfh
tfitbttlaiice
50

Z/CoiftifcttJCrfo
r(jCi)t/tany, Trustee

State Street, Boston 9, Mass.
•

vestments

the

is

15

been

Co., member of the

The Putnam

in

■

-

has

Exchange, Man¬
ager
and Distributor of EnergyFund, since 1956.

vested

of

Massachusetts

investment income,

Vice-President of Energy
has been with Ralph

93%

Chairman

Life Fund
.^DIVIDEND

He

about

'

.

Straus

L.

1960, accord¬
ing to Ilardwick Stires, President
of the Scudder Fund of Canada,
and

Massachusetts

June

economic

anniversary

The only common stocks newly
Railroad, 2,000; Equitable Gas Co.,.
added
2,000.
V *
to
the
portfolio
were
Also Gimbel Bros., 2,000*, Gran¬ De
Beers
Consolidated
Mines,
ite City Steel Co., 2,000; Inter¬
Ltd., 10,000 shares, and P.* Lorilstate Power Co., 6,000; James Lees lard
Co., 2,000 shares.
& Sons Co., 6.000; National Union
However, there were additions

your dealer or

Selected Investments Co. :

135 S. La Salle St., Chicago 3. HI

Stores.

ft

representing increases of 27% and
57%, respectively. This is after
expansion, adjustment for a capital gains
spurred by population growth and distribution in November, 1958.
increasing opportunities for ex¬
Purchases of new shares by in¬
Canadian

the Scudder Fund of

-

Prospectus from
1

Varian

New York Stock

years

American

Aviation, 9,000; Pacific
1,000;
Puget -Sound
Power &
Light, 1,000; Reliance
Insurance
Co.,
1,000;
Republic
Steel, 6,000; Union Pacific Rail¬
road, 4,000; Universal Leaf To¬
bacco, 4,000; Western Union Tele¬
graph, 5,000, and F. W. Woolworth
Co., 4,000 shares.

INC.

Potash

and

Winn-Dixie

Irving

Population

Companies.

North

shares

Commonwealth disposed com¬
pletely of Aluminium, Ltd.; Beth¬
lehem
Steel;
Columbia
Broad¬
casting System "A," Consolidated
Electrodynamics; Continental
Can; Crown Zellerbach; Feder¬
ated
Department
Stores;
Ford
Motor
Co.; Lone Star Cement;
Spencer Chemical; United Air¬
ft

Co., 1,000; Niagara

Power,

cele¬

Common¬

by

Associates.

Inc.

mittee

Report

will

.

Finance,

-

elimination
these

institutional favorites is Bethle¬

fund

anniversary

&

Ltd

The only other steel among

1957.

that the

brate its 10th

Chemical;
Black
&
Decker
announced by William G. Damroth, Manufacturing Co.; General Port¬
President of First Mutual Securi¬ land Cement; General Transistor;
ties of America, Inc.
The three Grand Union; Great Western Fi¬
funds—Corporate Leaders Trust nancial
Co.;
Litton
Industries;'
Fund, with $44.5 million in assets; Philips
Lamp
Works;
Phillips
Petroleum
Lexington Trust Fund, with $6.5
Co.; Rohm & Haas;
million, and Lexington Venture Smith, Kline, French, Trane Co.;

"highly

stock market that has climbed about 30%
(based on the
Dow-Jones industrials) the funds, of course, have been
a

T.

american

assets

tunities.

industry.

and

ft

oppor¬

But the fact is that most institutions have been alert
to
the profit potentials in the new favorites and have
exploited a lot
of opportunities. What they have not done is to throw on the
mar¬

Inc.

shareholders, Mr.
Carter, III, President, an¬

W.

ably follow

prob¬
pattern of U. S.
growth, he asserted.

System,

In his letter to

for Canadian securities will

the

Gas

Selected

currents that are

have taken a dim view of that industry's
problems—import
quotas, too much crude, burdensome inventories, onerous taxes
imposed by foreign governments, falling prices, rising costs, and

in

7,000 from 5,000; Drewrys Ltd.
U. S. A., to
15,000 from 10,000;

and eddies in the

stream, ignoring the deep under¬
running. In a market that has gone ahead full
steam, the oil shares have been bypassed by the short-term traders,

Growth

Columbia

Texas Gulf Sulphur Company.

on Aug.
31, 1959.
From initial assets of
Commonwealth
Stock
Fund, $150,000 and 10 shareholders, tha
Eastern
Utilities
Associates,
to Inc. of San Francii^o
reports net fund has grown to over $39,000,00(1
10,000 from 7,000; Kelsey-Hayes
assets have crossed the $10,000,000 and more than 13,000 shareholders.
Co., to 8,000 from 5,100; Louisville
mark, rising from $8,493,508 on
& Nashville, to 7,000 from
5,000; Oct.
31, 1958, to $11,677,171 on
Moore-McCormack Lines, to 7,000
April 30, 1959. This was due to
from 3,000; New York, Chicago &
a
combination of continuing in¬
St. Louis Railroad, to 8,000 from
vestment by new and old share¬
5,000; Truax-Traer Coal Co., to
holders
and
increasing
stock
7,000 from 6,000; United States
prices.
During
the
period
the
Lines, to 12,000 from 10,000, and
number of shares outstanding rose
Van Raalte Co., Inc., to 4,000 from
from 609,694 to 743,953 and net
3,00°.

to

be

ducive to rising equity valuations
the
U.
S.
than
in
Canada.

in

2J>

Incorporated IS 18

-

The Commercial and

Finaiycml Chronicle

(2762)

30

to

economy
in a colossally original. They do, I hope, illus¬
expensive effort to absorb a mar¬ trate a definite bias of action
gin of unemployment that can be towards measures that engage the
more
cheaply
and. effectively self-interest of the various power¬
eliminated, even with direct Fed- ■ ful pressure groups ih our society
eral Government financial assist-, and away from exhortation that

entire

Continued from page

11

b a Stable Cuiiency Possible in a
regardless of

Here

cost.

again no one can quarrel with the
objective of eliminating suffering
and want from our society. How¬

of us agree
the Canadian
people lies in creating the en¬
vironment for continuous, vigor¬
ous growth.
If the prospects for
growth are dimmed by a scale of
increasing welfare payments that
at the present pace of expansion
seems clearly inflationary, the se¬
curity from such a program be¬
comes largely illusory. The anom¬
groups can combine to
aly of pressing vigorously the
tackle more effectively the prob¬
three
objectives
of satisfactory
lem
of maintaining
satisfactory
growth, higher living standards
growth with minimum of unem¬
and a maximum program of social
ployment and with stable prices.
security is heightened in the case
As a general propositon, we must
of those who would like to ac¬
rely
less
on
exhortation
and
complish all this in a narrow
name-calling and create condi¬
framework of Canadian national¬
ever,

I think that most

that real security for

Thursday. June 18, 1959

.

.

the self-interest of the

engage

powerful pressure groups toward
goal of stable prices. I have
- the
mentioned several times in this
address the importance of putting
our
economic objectives in their

by an imaginative approach, assumes that such groups can ever properfperspective.:: I would like
problem at a regional level.' really acknowledge a criterion off to conclude by putting this talk
Thirdly, we
should approach action that extends beyond their in its proper perspective by para¬
In answer to phrasing a quote from that ever
only of savings but many other the problem of the inadequacy of own self-interest.
activities in our economy.
We savings not in the spirit of ration¬ the question "Can we have stable ; topical; playwright, Shakespeare:
money > in
a
growing economy
may then ask: "Is there any al¬ ing the available supply but with
:-"And still remains that we find
ternative approach to the problem the object of increasing the, in¬ with full employment?" U would
-J.,: out the cause of this effect ;
of inflation other than accepting centive to save and ^broadening say that our success in: attaining
Or rather say the cause of this
its
inevitability or relying en¬ the channels through which sav¬ this Objective will depend mainly
~""'J ' .
tirely on government policies?"— ings can be accumulated, This is on our success in reorganizing the vff;' defect PU y-f
"For this effect defective comes
both of which courses in my mind a job mainly for private enter¬ structural, institutional" arid" tax¬
by cause."
* "
throw
out
the
jys- - ft
baby
with the prise, but the Federal Govern¬ ing arrangements in - our society ;
bathwater.
ment can play a key part by in¬
creasing tax incentives to save
fice, i Washington
25,. D. ;lC.
For Stability
and by conducting is fiscal and
(paper), 25 cents.
• ::
I believe there are a number monetary affairs in a manner to
Historical and Comparative Rates
of ways in which we, as individ¬ give savers confidence in the fu¬
of
Labor
Force/ Employment
uals, business firms and regional ture value of the ; medium
in
and
Unemployment:
Hearings
saving will
political

Grawing, Fnlly Employed Economy
almost

.

ance,

to the

•

,

,

■

•

the

which

bulk

of

Before the Joint Economic COm-

continue to be done, that is, fixed
bonds

ings
the

in

such

forms

income

and

has been

spite of

-

Canadians

of

record
war

The

mortgages.
an

since

ment

one

have

a

stable 'currency

prerequisite to achieving
satisfactory rate of growth with
a minimum of unemployment;
I
believe in one way or another we
will set up defenses against in¬
flation and the real question; in
my mind is whether the methods
we choose
help to preserve 'the
essentials of our private enter¬
prise -economy or accelerate our
progress toward a highly regu¬
a

lated socialist state.

workers

of

accepting the inevitability and
desirability of inflation, increasing
the
opportunities
for
hedging
against it and resorting to the
printing press
to prevent the
natural tendency for prices to
outrun incomes from slowing the
process.
The inevitable end of
such a process would be a serious

On the whole,

saving suggestions.
labor

this continent has a good

on

record of accepting the introduc¬
tion

of

and

methods

new

chines.

ma¬

However, there are some

important exceptions, particularly
in
the
field
of
transportation,
which is

lins Street, Melbourne,
-

In

the

Canadian economy.

be made

general, it should
easier

things

for

business

necessary

to

to

do

reduce

costs than to conduct a successful

appeal in Ottawa for subsidies or
tariff protection.
With Ca¬
nadian industry currently experi¬

more

encing

a very

productivity,
to

remind

satisfactory gain in
is a good time

now

both

businessmen

and

labor leaders of the economic ad¬

vantages of allocating some part
the productivity gain to the
largest but most often overlooked
assumed serious enough propor¬
segment of our population — the
tions. This is not likely to be the
consumer.
Labor has been
crash -when

maladjustments

of

had

press¬

pattern of events in Canada.

would

that

other

do

than

more

-

(

Research.

New

fioii

;• •• ;•;;•; 'u '

With

for

Italian

partment :—Chamber of - Comof /the •_ United - States,Washington 6, D. C. * (paper);r. -

defense

—

Edited

more

r\—H. W.

mitments

for defense

abroad

"-..

than

•

• ~

therefore, to reduce
expenditures in other areas of
our Federal budget.
ever,

Dumb Welfare;

.

Elec-

.

Via;

Venei'o, " Rome,

Jtaly; 15c per copy; $1 per year.

Knights, of- Labor
-Leon 4 Watillon,

.

uments, U. S. G o v ef n m e n t
Printing Office, ^Washington "25,
DC. '(paper), lob
' *
'l ,'J.

'

March-April 1959

trical Industry ; etc.—Italian Af-

fairs, "56

.

4

Grants-

Department of State Publication
6,789—Superintendent of Doc¬

•'

It becomes more important

table.

New York

Exchange

Affairs,

Public Relations in Italy;

.

52, N. Y., $3.

Educational

York 6, N; Y.
' ^ -fF
P -

Blind,. Deaf &

A. Gordon-Brown.
Wilson* Company,. 950

.

decline,

to

.

Edi-*

.

Guide

by

University -Avenftb,

•'

un¬

resumption of
a
rising
trend
in
government
spending for defense seems inevi¬
likely

'♦

J

expensive and our. com¬

;Up

Wiesenberger —

<

containing articles bh technical
Training- in the Armed Forces;
Foreigners Resident in Italy;

.

ing

Arthur

(cloth), $25. U

V.merce

defense purposes.
equipment becom¬

—

Broadway, New

'

spending

;

■>

Arthur Wiesenberger & Co., 61

Forces and ReProspects: Report
Economic Research De¬

East Africa, Year-Book and

Carborundum

Niagara 'Falls, N." Y.

(paper)..

employment

f

—

investment .Companies 1959

Disemployment

have occurred ; in spite
to declining .trend in

Area

Company,

•

oUthe

Report

Survey: Niag-

Climate

Falls

ara

'

:

—

Energy—United States
Commission,
Washington,. D. C.: (paper)y, bn
;request/': ry 5; is U-r ***-':■
U"\'

*

ahead that has encouraged
widespread acceptance of the in¬
evitability of inflation.
Recent
increases in overall government

1958-1959

Joint r~ Committee : bn

'the

Industrial

'

Design
and
the
Production of
Houses—Burnham Kelly.—McGraw-Hill Book Company, .327
West 41st Street, New York 36,

years

.

Atomic. Ener gy

-

;

Y., $10.

of

'Atomic

,

N.

Operations

and

Safeguards
n'to

1959 —.
Bureau,

Book;

.

obligations
that
are
enormously in the

flat

Year

82
Beaver Street,
York 5, N. Y„ $l£95.

bound to grow

a

Activities

Advisory Committee on Reactor
'

5,

Washington

Inc.,

savings

spending

r

(paper).

Commodity

'

quest).

,

Indemnification of Atomic Energy

.

C:

D.

their tech¬

among

personnel—Industrial Re¬
News,
230 West 41st
Street, New York. 36, N. : Y.,
(quantity prices on re$1,50

Data, 1958—Na-

\

to

raise the level

lations

Australia

'

encouraged government to assume

of

Building,

*

Commodity

any

dollar is to balance
the budget by a cut in govern¬
ment spending.
It is the .almost
cavalier way in which we have

his

erh

designed*

nical

fional Coal Association, Dfepartment of Codl Economics* South-'

•

Booklet

—

Creative

Your

Increase

of creativity

.U'p v;■

1

Bituminous. Coal

thing to restore savers'
in the future value of

one

confidence

(paper)-.,

-

f

the Federal Government could do

particularly heavy cost financial

a

item in the

much

7 To my mind, the most direct
route to the latter would consist

scope for rewarding
who come up with cost-

to

.' assist companies

power;

'

Printing Office, Washing(paper), 35c. <J

Output

Monthly

trade and commodVf ities; cement and cement prod¬
ucts, etc.—The National Bank of
Australasia Limited, 271-9 Coltric

,

greater

—

summary—Containing infer ma-;
tion on overseas trading; elec¬

,

will

Conditions

Australian

.

25, D. C.

IIow

tutional base for the accumulation
tions that direct the self-interest of savings. In the past insurance
high tariffs. Let us con¬
of major groups in our society has been one of the major-ways
tinue to aim high in our objectives
toward actions that promote price in which
Canadians have saved
but let us also put them in proper
stability rather than inflation. A and will likely continue to be
perspective from a timing point of
good example of the approach I in the future. Nevertheless, there
view.
mean can be found in the area of
is room in our economy for addi¬
Inflation Dangers
cost reduction
and productivity. tional institutional media for ac¬
I have spoken thus far about
It is patently in our best interest cumulating savings.
soihe characteristics of our econ¬
to increase the incentive for firms
In
this connection, recent ef¬
omy
that make us particularly to
to
improve productivity and cut forts
establish
a
secondary
vulnerable to inflationary trends.
costs, either by encouraging re¬ market for mortgages through the
These
characteristics make me
search or giving greater tax-free medium of a mortgage bond com¬
feel positive that a stable cur¬
allowances for depreciation.
In pany is a good example of what
rency or general expectations that labor
relations
there
is
also I mean.
The single . thing that
are

ton

;

fairly narrow insti¬

a

ism and

we

Congress of -the
States—Superintendent
ofv: Documents. U. S. Govern¬
United

sav¬

excellent

of -the

mittee

v

insurance,

as

U;. Frederic

in -Belgium -ftranslated by

Institute, of
100 BAE
Building,. University of Califor¬
nia, Los Angeles 24, Calif., $1.50.

"•

Meyers

—

Industrial: Relations,.

all the gains
Employee Welfare and Pension Luxembourg
Summary of -in¬
productivity, apparently on
Funds: Statistical.Tables-^-New'
certain route to the same desti¬ the
Effectiveness of Competition ;
vestment information—Board of
theory that there is only one
York State Insurance Depart-*
nation would be to adopt the at¬
way to increase consumer's buy¬
: Industrial
Development of the
Fourthly, one of the most po¬
titude that only the government
ment, Welfare Fund Btfrelau, 123
ing power and that is by increas¬ tent forces in the fight against
: Grand
Duchy of Luxembourg-—
William Street,York 38,
or
some
arm
of it such as the
Consulate of Luxembourg, 1200
ing his income. We suggest there inflation is effective competition..
N. Y.—$5,501*
Bank of Canada has the power is another and better
\
rr/
way
and Pressure groups in our society
-Fast 42nd Street." New-York 17,
or devotion to the general interest
that is by using part of produc¬ arb successful chiefly to, the de-> Establishing the Product-Planning U-N. Y,
/U. - -P •/-.;• •• yU.
.. to efficiently tackle the problem
Function in
Your
Company—
tivity gains to reduce prices and gree they can insulate themselves
Making Medical Care Better—And
of inflation.
The more sophisti¬ thus increase the
Edgar W. Nelsorf—"Market Plan^
purchasing from competitive pressures. Every.,,
Easier to Pay For, Too—Herbert
cated have long deplored the pop¬
ning
Corporation," 6 4 2 Fifth
power of the consumer's dollar.
opportunity
should
be
taken,,
.Yahraes—Public Affairs ~ Comular delusion that the government This method has
Avenue, New Y0'rk,tl^'N. Y.
particular merit therefore, to increase the number:
mittee, 22 East 38th Street,. New
distributes
real
wealth
rather in that it does not
encourage in¬ of price decisions that are arbi¬ Federal Home Loan Bank Board
.'York 16, N. Y. (paper), 25<h;
than claims on wealth that have
—Annual Report, 1958-UF;ederal
flationary trendencies.
trated in the market place. Both,
Marketing Reference Bureau In¬
already been created. Yet these
Home Loan Bank Board, Wash¬
Perhaps it is time to have a business and labor are guilty of.
dex of Advertising & Marketing
same
sophisticates will fall into spokesman for a well organized
ington, D. C. (paper).
;
short-circuiting the discipline of;
Publications—Marketing Refer¬
an even greater error of believing
consumer
group
sit as a third the marketplace at times. There Fiat Money Inflation in France—
ence
Bureau, -Inc., 1616 Pacific
that in a democracy the govern¬ member at the
wage bargaining are,
Andrew
Dink son
White —,
however, pitfalls to be
"Avenue, San Francisco 9, Calif.
ment can ever impose for any table with labor and
management. avoided in pushing competition
Foundation forfe.Economic; Edu¬
^-Issued monthly —$10.00 per
time a solution to a problem that While
admittedly difficult to ad¬ as
an
anti-inflationary
cation.
device.
Irvington - on .- Hudson,
year
(semi-annual .cumulative
does not have the popular sup¬ minister a
system of tax relief Bigness which derives from effi-.
N. Y. (paper),
|1.25;. cloth, $2.
editions ^$8.50—^.iree to subport of the mass of the people. for that proportion of profits al¬
ciency must not automatically be Four Ways to Be~ Sure It Can't
seribers'H - • •
-. /
-**
"
' V
Without popular support the gov¬ located to finance a reduction in
labeled
monopoly. Similarly,
Happen Here—Booklet on:-Pre-ernment's approach is more likely
Occupational Wage Survey, New
prices would be an interesting growing recognition that certain
.vention
of ^manipulation,
to be a rearguard action playing
of
York City April 1959—U. S. De¬
approach to this problem.
international labor unions exert
paperwork in deposit accounts
for time and masking the unpop¬
partment. of Labor, Bureau of
a degree of monopoly power than
and
loan
transactions—'Cumular aspects of its actions. The Employment a Regional Problem
Labor
Statistics,
341
Ninth
cannot longer be tolerated should
onins-Chicago Corp., 4740 North
tendency would be to treat the
Avenue, New York 1, N. Y.
In the second place, we should not be the basis for a broad move^Ravenswood
Avenue,
Chicago
symptoms of inflation on an ad
Oil
and
Canada-United
Stales
regard and tackle unemployment ment^to break the trade union
'40, 111.
hoc basis as they appear.
Relations
John
Davis — Na¬
less as a national and much more movement.
Finally, the general German
AffairsH-"The Bulletin,
tional Planning Association,
Take, for example, the financial as a regional problem to be dealt desirability of allowing commod¬
a weekly survey—Press and In1606 New Hampshire Avenue,
problem associated with
infla¬ with jointly by business, labor ity imports to enter the country
formation. Office, German Fed¬
N.
tion. As pressure points develop and municipalities at a local level. at tariff rates that allow them
W.,
Washington1. 9, D. C.
A somewhat

longer but

no

ing

less

hard

to

corral

from

_

:

.

.

*

...

.

..

.

-

•

—

•

"

in

our

financial

structure,

regi¬

This

is

the

level

at

which

more

to have

eral Government—German Em¬

a

strong anti-inflationary

mentation and direction of avail¬

effective

able

to

expand job opportunities of a
permanent nature and this is the

exception for

level at which pressures to evolve

tive protection

savings

irresistible

will

be

solution

an

for

ment to

almost
govern¬

adopt. If we continue to
fore growth at a pace faster than
savings
accumulate,
we
invite
regimentation and rationing not




a

measures .can

successful solution

are

be

taken

greatest.

In this approach, also, we weaken
the tendency to overstimulate the

effect

should

not

preclude

the

and struggling
industries that might need effec¬

bassy, 1742-44& R Street, N. W.,
Washington, 9; D. C.. • *
.

(paper), $1.

at that particular
stage of their development.
The suggestions just discussed
are
by no means
inclusive or

Highlights of
velopments

Foreign
1958

—

of

Policy De¬

State

Publication

Superintendent' of
U.

S.

Government

6799 —
Documents,

Printing Of¬

Business

sity

Department
„

of

*

i!

Review—Bureau
Research, Univer¬

Oregon Business

new

of Oregon,

On request,.

Portfolio

Eugene, Ore.—

-

Selection:

versification

of

Efficient

Di¬

Investments I—

Volume

189

Number 5856

.-.

.

The Commercial and Financial Chronicle
4

*

(2763)
-»

Harry Markowitz—John Wiley

Continued from

&
.Sons,; 440 Fourth Avenue,
i;New York 16, N. Y., $7.50.

Primer

for

Profit

in

the

4

paae

level was the third
highest for any monthly total, exceeded only
by January and March of this
year.

r y

New businesses chartered
totaled 70,230, for a

Stock

"s;' Market'; A Manual

for the Small

•*Investor

Kahn,

Harry

—

"y Doubleday &
'*

porated,
New

$835 million and excess reserves $440 million during the four
< weeks ending June 10. Over this period, reserves were absorbed
by: currency and gold outflows and by reductions in Federal Ret serve holdings of U. S. Government securities/ Reserves were

Jr.—

'

.

Madison

Avenue,
N.:Y:. (cloth),

22,

$3.95.

,

supplied mainly by

;

;

Puerto Rico Aqueduct and Sewer
Authority: Annual Report 1958
d Sewer

'

Aqueduct

Authority,

Puerto

.

Rico

Rico

decrease in required

a

SECURITY MARKETS

and

<

■

San; Juan,

Yields

reserves.

long-term Treasury and
State and local government securities have
remained relatively
stable since mid-May, but those on
corporate bonds and on short-

*

+- Puerto

during the first four months of this

year

Company, Incor-

575

York

31

'and

(paper).

At

—

on

intermediate-term
the

end

of

Treasury issues have increased further.
Federal Reserve Bank discount rates have

May,

gain of 50.9% over last year's 46,545.
sharp rise in incorporations that began last FaH
was
undoubtedly due to the approval on Sept. 2, 1958 of the Tech¬
nical Amendments Act of 1958 which
provided for tax advantages
for small corporations.
This encouraged many small
proprietor¬
ships and partnerships to incorporate.
Much of the

Feverish Steel Shipments Pace
Steel shipments are
strike deadline

as

continuing at

Strike Deadline Nears

a record pace as

the July 1
approaches, "Steel," the metalworking weekly, said

June 15.

Economic Review: > raised one-half percentage point to 3+>%. In
early June, common
Highlights -of - t h e V stock prices declined appreciably and then partially recovered.
Saskatchewan Economy —Eco'
; i
4
'
nomic
Advisory
&
Planning
> With the bottom of the recession now more than a year past,
Board,
Legislative
Buildin<* ' ; is the Pace of the recovery "on schedule"? The Harris Trust and

Regina,-'Sask., Canada (paper)'

weeks

Statistical

•

„

,,

.

,

•v

Southern
hi

AfHea_Voar

'Guide—Edited

Brown—H
rrbanv' 950

-

,!

The

RnnV

A*

hv

W

Wilsoh

52

answer

filjds■' product indicate that the recovery is
;i:

Com-

as swift as the 1950 and 1955
recoveries. But the net gain over the pre-recession peak within
the first >"ear is o bit less this time because the 1958 recession
was 30% to 60% more severe than 1949 or 1954.

'

Avpmm

'
~

Freeman—-June,

this question in its
"Barometer of Business." The monthly business summary
that both industrial production and -real gross national

June

o

Y

N

Sqvings Bank, Chicago, attempts to

-

Pnrdrin

TIniver<?itv

New York

1959—Con-

•

,irr

.,

.

.

,

.

,

Jt

,

" While.the expansion movement is broad, the Harris Bank
observes that the high rate of inventory accumulation is a key
' factor- Business and farm, inventories accumulated at a $5.7 billion
Socialist Propaganda* What Inannual rate in the first quarter, highest since 1955. Two factors
rdustry Expects of the Engineer" ' are at w6rk: hedging against a possible steel strike and expansion
Unemployment and Unionism'
of manufacturers' new orders and sales. Inventories tend to rise
"etc.
Foundation for Economic " wben new' orders exceed sales and order backlogs accumulate.
"'Education." Inc.
Irvin^ton-on- " Durable manufacturers' unfilled orders have risen 7% since year
"Hudson, N. Y. 50c.
to —""- v end, quitb comparable with the 1955 recovery at this stage. At

taining articles

Free

on

Enter-

-

prise and European Unity Merchant's Appraisal of Inflation*

v

"

1

lion tons.

Although current performance is better than expected a few
odds still favor that this month's shipments will
April level of 8.6 million tons. Overworked equip¬

ago, the
fall back to the

ment may have to

tenance.

Slowdown

And

shippers

road

Unions

AmVrino.

in
u

n

a

T>f

Sectto^

JiSations
University,
Princeton

P

t:

Princetcm

i
~

-248

months.
'
'; . v:
The Barometer finds that steel labor negotiations
merit fiscal problems keep inflation at the forefront

y-

'

$2

(paper)

V *

the momeftt+total business inventory-sales ratios are the lowest
since 1950. Basic economic forces portend continued inventory

1

u

i -S1

J

Box

O

j.

N.

-d

T

'

v.

and Govern-'

-

.the day.

In April wholesale prices set

a

new

as

high and

topic of

a

and

DaIIm! FSltflltfa

lift*
1 prices re-attained their previous peak, with a further rise officially
riVldlluUf IUvalyith rising demands and greater utilization of capacity
llftlinwiMMxi fill
*j|
',! the upward pressure on prices seems likely to intensify. Yet some
UeDGRYUlBS UYTered
-perspective is desirable;. During the past year, both price indexes

tpani

Kimball

undf»rwritintf

an

fered

on

iti

hr,

x

June 16

have shown almost no change even though industrial prices have
" risen moderately while farm products and foods have declined,

r'

+r

crmiin

$500 000 of

Dall '<Moreover, the United States has held, the price rise

ton

Finance, Inc. 7% subordinated
debentures, due May ly1974- at

ance<i-f>u.dg.et'

purchase of 100 shares.of class A>

/
"...
*
Nationwide Bank Clearings Up Only 1.3% from 1958 Week
-

stock;

stork

*•

$601^303
Dee 31'
toraieci *bUM00 on Dec. 31,

Md

on

is 'at'Mmirif

dfrecUy" nd

engages

subsidiaries
business

in

nrinri-'
v

through

AIIahIiV Rpeparrh ftnrit

Miianiiu ncdcaiun

Week Ending June 13-

'

uuip.

Chicag0

the

Co

&

-*

<

will

stock

Rhort-tprm

be

used

expansion

of

iacultiS

•

augment the working- capital
position of the company.
"
Incorporated in 1949,^ the com-%
pany is primarily engaged in the
.

research, development and
in

rockets,

about

the

80%

volume.
active

m

-

field

of

of

manu-

solid

which

The -.company
electronics and

business

is

also

°P^CJ

an^

^
ite
^
i

-

^oS

t"

,

,

94%

-

:

,

,

944,000,000
664,324,710

+9.4

*

,

n<t_

...

;

the financ-

came

to

$708,940,061,

down .0.3%

from

.

7

The aggregate of building permit values for 217 cities for the
first four months of 1959 were at a record level.
The total was
-r.

18.2%

over

the prior record of $2,028,626,841 set

in 1958.

'
'

New York

City had

a

permit valuation

total of $371,853,402

fo1' the first four months of this
year, compared

with $220,244,756
a year ago, for a gain of 68.8%.
Outside New York City the four
month total came to $2,025,678,570, an increase of 12.0% over

eonsiS solel^ of 753°856 £ast year's $1,808,382,085.
totaTlutoSSTssuetf 2,0^000April Ncw Business Incorporations Set Record
shares.

pin'y

vdll

.For
1958

the

year

Atlantic

operating

ended

Research

23c

reported

per common

share.,-


J
http://fraser.stlouisfed.org/ $
Federal Reserve Bank of St. Louis
-

31,

of $3,756,524
$218,079, equal

revenues

and net income of

to

Dec.

Although the number of new incorporations chartered in April
slipped from the prior month, the level was the highest for any
April on record, reports Dun & Bradstreet, Inc. The total was
17.554, down 3.1% from the prior month's 18,119, but 54.9%
higher than the 11,329 of the similar month last year, and 40.7%
above the previous April record of 12.475 set in 1956. The current
*

'

operate

fear the

trickle may become a flood

before long.

The

waukee.

The major country of origin seems to be West
Germany,
Belgium, France, and Britain also shipping.
; «

with

"Steel's"

•

industrial

production index reached a record high
It's the fourth week in the last five in which
record has been tied or broken.

for the latest week.
a

r

Principal factor in this latest
is electric power output, which is; about 14%
ahead of the year-ago figures.
The other three factors in the
index: Steel production, auto and truck
production, and freight
carloadings.
'
show

of

strength

.

Mealworking production capacity will be boosted 2.7% in the
half, "Steel" found in a survey of 6,000 plant managers.
One in three metalworking plants
plans to expand.
Of those
boosting capacity, 7 in 10 will buy equipment; 1 in 3 will build
plant additions; 1 in 8 will build plants. Here's how much major
industry groups will expand: Instruments, 5.1%; primary, metals,
3.9%; transportation equipment, 3.6%; electrical machinery, 2.3%;

,

„

nonelectrical

other

machinery, 2.3%; fabricated metal products, 2.1%,+
metalworking, 3.0%.
+
,

"Steel's"

price composite for No. 1 heavy melting at
$35.50 a gross ton was up 50 cents last week, highest since April.
Spotty demand is still noted.
scrap

Steel Output Based
The

American

Iron

and

on

Steel

-

92.9% of Capacity,
Institute

announced

that

the

operating rate of the steel companies will average *163.8% of steel
capacity for the week beginning June 15, equivalent to 2,831,000
tons of ingot and steel castings
(based on average weekly production for 1947-49) as compared with an actual rate of
*162.1%
of capacity and 2,604,000 tons a week
ago.
to

.
L,

Actual output for the week beginning June
8, 1959, was equal
92.0% of the utilization of the Jan. 1, 1959 annual capacity of

147,633.670 net tons.
92.9%.

\

Estimated percentage for this week's fore¬

cast is

!

(

A month ago the operating rate (based on 1947-49
weekly
production) was *164.6% and production 2,644,000 tons. A year
ago the actual weekly production was placed at 1,751,009 tons, or
*109.0%.
i.r

*Index

of

production is based

for 1947-1949.

,

on

average

,

weekly production
"

+

'

Dispute

Despite the noisy chest-beating, both sides in the steel labor
hassle are now ready for some tough give-and-take collective
bargaining, according to "The Iron Age," national metalworking
weekly.
•
'< +
"Iron

March

Building permits issued in 216 outside cities totaled $597,464,-

up

*

to

Look for Compromise in Steel-Union

the

rail¬

or

+1.3

904 in April, for a gain of 11.3% over the year ago $536,821,090,
but down 2.8% from the March total of
$614,405,217.

$2,397,531,972,
,

trucks

Chicago, Cleveland, and Detroit ports received 9,063 net tons of
steel bars from six countries in the week ended
May 30. Other
products docked include structural items, steel
wire, and bolts,
nuts, etc.
/
Chicago appears to be the favorite port of entry, with much
foreign steel also going to Cleveland, Detroit, Buffalo, and Mil¬

'
+

.

of

of capacity.

steelmdn

+1.0

New York City building plans filed amounted to $111,475,157
in April,,up a sharp 107.5% over last year's $53,726,893, and 15.4%
higher, than the $96,589,327 of the preceding month,

-?;r

electro-

mechanisms, combustion, chemical

rocket

V

1,18.5,708,337

$710,994,544, but up 20.0% over the $590,547,983 o£ April 1958,
l
Prior record for the month.

-

pro-

constitute

current

+
,

shortages

r

1,197,243,373

April Building Permits Record For Month
'

current total

finanw

and

facture

,

level £°r.any April on record reports Dun & Bradstreet, Inc. The

;

,

i

pellant

%
—0.8

retire

to
to

existing

1953
$12,998,887,850

-—The total value of building permits fbr 217 cities declined
fractionally in April from the prior month, but was at the highest

;

thp

hank-lmn?

a

cnio'-nf ;

"

-

from

increase compared with

1,033,000,000
673,218,706

———

Boston

Re-,;,..
search Corp. at $15 per share was
'
made on June • 17 by "■ Johnston,'
nrnrpprk

an

$12,895,164,173

Philadelphia

Public offering of 100,000 shares
of common stock of Atlantic

Npt

,

„T

;1959

NewYork

CommAi! Slock unereu
uommuil OIOCH Offoroii

Lemon

^

091 for the same week in 1953. Our comparative summary for the
"principal money centers follows:
.
;
;'

,

V

«■!

.

r

gur preliminary totals stand at $24,202,720,542 against $23,884,316 -

'

■

,

„

ypar ag0' Preliminary figures compiled by us, based on telegraphic
advices from the chief cities of the COUntry, indicate that for the
week ended Saturday, June 13, clearings from all cities of the
United States from which it is possible to obtain weekly clearings
wiU be 1'S% above those for the corresponding week last year,

smalf lofn

the

'

-

,

Bank clearings this week show

1

•

'

Rbnior

.

by

Also, steelmakers will have to start banking their furnaces
trimming production schedules soon unless there's a turn for

their furnaces
Output was 2,661,000 ingot tons.
Foreign steel is entering the Great Lakes ports, via the St.
Lawrence Seaway in little more than a
trickle, "Steel" said. But
at

tion are missing, the emerging boom is likely to exert moderate
inflationary pressures.

,

Finance- whose

policy.

growth will be restrained in coming months. Therefore the Barometer concludes that although ingredients for a substantial infla-

of

four classes of debentures:
468,498/
shares of class A" common

office

monetary

the recovery began. While the money supply has advanced
rapidly, since January, recent Federal Reserve action suggests its

operations.
Giving effect to this offering,
capitalization will be: $769,400 in

Dalton

restrictive

a

as

..

debt, and for possible acquisitions

ual

plus

revenues, to balance the budget during the next 12 months.
The
Federal Reserve promptly restricted monetary growth last summer

,

1958

.

in fiscal 1960

stymied

second

v

be used to.finance additional loan
volume and reduced short-term

which totaled

since 1955 to

foreign countries,

^Barring a.vsharp further increase in Federal spending, the surge
hi personal and corporate incomes will generate sufficient Federal

stock, par value 50c, accompanies-each $500 debenture.
:Proceeds from the offering will

extension

many

believes that factors mitigating against
^substantial, inflation include vastly improved prospects for a bal-

common

and

The Harris . Bank

*?■

100%
plus accrued interest.'~A
nondetachable
warrant, fon' the-

.

more.moderate proportions than

■"

be

may

the better in labor negotiations.
Steelmakers last week continued

consumer

vailllll

be taken out of service for
repairs or main¬
or wildcat strikes
may hamstring production.

cars.

—

"

-

j

Mills are
pushing finished products out of their doors at
capacity. If they can keep it up for the next two
weeks,. June's
shipments will match or exceed last month's record of 8.9.mil¬

Saskatchewan

Age" predicted that serious efforts to break the

deadlock will be made

soon.

This could take the form of

sions

by management and labor despite the apparent
promising positions bith sides have assumed thus far.

current
conces¬

uncom¬

At the same time, the magazine conceded that the
atmosphere
anything but encouraging. Nevertheless, it still feels that if the
dispute goes to a strike, the walkout would be one of short
duration rather than a long and bitter one.
i
is

matter

what is said, steelworkers as a whole have no
long strike," "Iron Age" said. It added that David
McDonald, steel union chief, knows this as well as anyone.
Thus, it believes that when the chips are down the union will
move in the direction of a realistic
compromise.
"No

stomach for

a

J.

"There

still 6-to-4 odds for

a short strike," said "Iron Age."
that there will be some kind of a walkout to
suggest that steelworkers are behind Mr. McDonald.

"It is

are

still likely

"The

applecart could be upset in the

next few weeks,

but

'The Iron Age' stands on its previous story that even though the
chance is slim, there may be a non-inflationary settlement without
a

price

increase.

In

other

McDonald to be reasonable."

words,

this
.

is

the

year
-

for

-

Dave;
/

,

Despite ihe probability of a walkout, steel users are pushing
the mills for a place on third quarter delivery schedules. The mills
are accepting
these orders with some misgivings. They realize
that a percentage of this business will be canceled out if there
Continued

on

page

32

32

The Commercial and Financial

(2764)

Continued jrom page

wheat moved up during the week and prices
Corn trading was steady and prices
remained at the levels of a week earlier; marketings by farmers
were light.
There was little change in soybeans prices and trading i
The buying of

31

was

At the same time they are

strike.

Electric Output

The amount of electric energy

distributed by the electric light

industry for the week ended Saturday, June 13, was
estimated at 13.503,000,000 kwh., according to the Edison Electric
Institute.

'

For the week ended June

.

13, output increased by 480 million

kwh., above that of the previous week and showed a gain of 1,394,000,000 kwh. or 11.5% above that of the comparable 1958 week.

Loadings 11.3% Above Corresponding 1958 Week

Car

Loadings in the week of June 6 were 5,102 cars, or seventenths of 1% above the preceding week.

Lumber

6

In the

same

week

new

sales

period

tal

the

$875,000 of the proceeds
acquire the outstanding stock
of
Grand
Prairie
Savings and
Loan Association of Grand
San Diego Imperial Corp.; in¬
corporated in California in 1956,
is engaged primarily in the busi¬
ness
of holding stocks of other
companies. Its principal invest¬
ments are in various Savings and

buying of Summer merchandise this week and total retail
noticeably from a year ago. Best-sellers were men's
apparel, lawn furniture, barbecue sup¬

the

from

comparable

1958

levels

the following

by

Loan

5.6% below.

were

Business Failures Down

Moderately

Commercial and industrial failures declined to 295 in the week
ended June 11 from 314 in the

preceding week reported Dun &
Bradstreet, Inc. However, for. the first time since January, casual¬
ties exceeded their level a year ago when 254 occurred and also
comparable

more

1957 total

Failing

of 265.

businesses were

18%

than the 249 in prewar 1939.

numerous

Casualties

involving liabilities of $5,000 or more fell to 254
previous week, but remained above the 216 of
change among small failures,
which stood at 41 as against
42 a week earlier, and 38 in the similar week of 1958. Liabilities
ranged above $100,000 for 27 of the week's failures, edging up
from 25 in the preceding week.
Retailing casualties declined most appreciably during the
week, to 146 from 162, while manufacturing dipped to 49 from 53
and wholesaling to 26 from 37. On the other
hand, the toll among
construction contractors rose moderately to 43 from 38 and
among
from 272 in

the

this size last year. There was little
those with liabilities under $5,000,

service

concerns

to

31

from 24.

More

reported

marked

increases

in

of

sales

ice

priations

of

the

week's

downturn

concentrated

was

in

four

Department stores sales
geo¬

the

Central and Mountain States.
tolls

held

at

the

increased

A new issue of

level.

Contrasting

increases

raised Pacific casualties to 67 from 61, New England to 25 from 23
and South Atlantic to 23 from 22.
Geographic trends from 1958

country-wide basis

Index

for the

week

as

the market on June 16
underwriting
syndicate
managed by Blyth & Co., Inc. The
stock was priced at $30.25
per

by

_

Reichhold

a

taken from
6,

Houston, Texas.
Reichhold

street, Inc.,

rose

fractionally in the latest

City for the week ended June 6 showed a 10%
In the preceding
5% increase was reported. On May 23 sales

operated in the United States, and
company has subsidiaries in
Canada
and Mexico; - Reichhold

has

31

advancing in wholesale cost this week were
coin, lye, oats, lard, cocoa, potatoes, steers, and hogs. Lower
wheat, coffee, and eggs.

The Index represents the sum total of the
price per pound of
loodstuffs and meats in general use. It is
not a cost-of-

raw

living index.

Its chief function is to
food prices at the wholesale level.

Wholesale

show the general

trend of

»

■

There was

J-

Golf Tournament

97R Q9
276.92

°°
a

The Dailv
Commodity Price Index, compiled by Dun & Bradstreet,
T

week

9. (1930-32= 100)
and 279.63

earlier

year ago*

Reports

on June 15, compared with

on

the

corresponding

date

Golf Association

on

June

16 held

its 60th annual tournament at the

with

a score

American Steel Foundries has
acquired the assets and business
of South Bend Lathe Works, it

announced on June 17. Hornwon low blower & Weeks furnished finanof 74 The Gov- cial advice and assistance to the

Winged Foot Club.
Thomas McKenna, Jr.,

was

*

of

m

from the prior week.




negotiations

above transaction.

Cup was won by James
Nick, Jr., J. F. Nick & Co.,
a gross of
78, net 67.

*

.

7;

leading

up

to

the

McDermott, partner
Hayden, Stone & Co., chairman
of
the
Golf Association,
stated
that 250 golfers competed in the

May, Borg Admits

tournament.
Guests
C.

of

of

honor

were

Edward

Werle, Chairman of the Board
Governors

of

the

On

June

1

Thomas

T.

Mosby

partnership in
May, Borg & Co., 61 Broadway,
New York City, members of the
was

admitted

to

American Stock Exchange.
D

i

c

*a.1_

Dertram omitn

Exchange;
Bertram Smith,

associated with
Funston, President of the
Yarnall, Biddle & Co. PhiladelExchange; and Edward C. Gray, phia, passed away June 2 at the
Executive Vice-President.
age of 73.

Keith
„

,

J

J

^

„

the common stock since
regular ' dividend in
The latest divi¬

on

initial

the

dend,

paid

■

amounted

H.

H.

to

on

May

15,

1959,

15

cents

per

share.

Reichhold,

-

President

and

chief executive officer and owner

£'^g^oTs" common' shares," has
walv'ed

divjdends

1,500,000 oi
April 1,1961.

on

these shares through

April
amounted to
$30,568,000 and net income applic¬
able to common stock to $1,032,000,
In the four months ended

30,

Richard G.

of

a

unfavorable weather in
growing areas and an
trading helped rye prices rise appreciably during the
week.
Crop damage in Missouri, Illinois,
Minnesota, and the
Dakotas stimulated interest in
oats, and prices were up noticeably
increase

So. Bend Lathe Works

The New York Stock Exchange

with

a moderate rise in the general commodity price
W1^b Sams in most grains, lard, and steel scrap

*

November-1956.

F.

? declines in hogs, lambs, flour and rubber.

Wholesale

terly

ernor's

Previous Week

foreign

7. White Plains, N. Y.

Acquires the Assets of

gross

Commodity Price Index Moderately Over

number

in

in

Exchange Annual

Commodities
were

Amer. Steel Foundries

a

other

interests

Executive offices are in

Dividends have been paid quar¬

«fin5e ?rl0r wyk- 9" J«^Ut°t°od at $6'09' UP 03% imm the
$6.07 of a week earlier, but 7.9% below the $6.61 of the corresponding date a year ago.
floui,

stock

companies

countries.

New York Stock

major producer

a

the

of

week from the 1959 low

is

synthetic resins and industrial
chemicals.
Sixteen
plants
are

of

increased 10% and May 16 a 7% increase was reported.

Index, compiled by Dun & Brad¬

1958-60

its

of

costs

to

expected to
total about $24,000,000.
Included
in this figure are about $4,500,000
to be spent for additional facilities
at Elizabeth, N. J., and $1,800,000
at Tuscaloosa, Ala. Approximately
$1,000,000 has been budgeted for
costs
of a new resins plant at

Wholesale Food Price Index Moves
Up Fractionally
The Wholesale Food Price

+,7 %%%

+■

construction program,

increase from that of the like period last year.

week, May 30,

<

Approximately $10,000,000 of the
net proceeds will be applied by

11% above the like period last year.

sales in New York

mixed; four regians had heavier business mortality while
five reported slight declines from last
year.

on

an

share.

.j+V According to the Federal Reserve System department store

were

400,000 shares of

par

placed

)

ended June

or.

'?+'17

value common stock of
Reichhold
Chemicals,
Inc.
was
$1

In the preceding
week, for May 30, an increase of 5% was recorded. For the four
weeks ended June 6, a gain of 9% was registered.

In both the South Central Regions,

previous week's

on a

Federal Reserve Board's

■V,:77

share,..'.>

Common Stock Offered

salers.
All

reserves,

$832,494,

Reichhold Chemicals

For June 6 Week

graphic regions: the Middle Atlantic, down to 100 from 105, the
East North Central, down to 52 from 65, and the West North

to

amounted to $57,623,

reserves

2c per

cream,

Sales Up 11%

31,

Dec.

equal to
35c per share. Per share earnings
after appropriations for general

businesses succumbed than

Nationwide Department Store

general

for

amounted

products, cold cuts, and fresh produce, while
goods, baked goods, fresh meat, and poultry
remained at prior week levels.

in retailing, construction, and service. But, slight dips
from last year's level prevailed among manufacturers and whole¬

ended

year

terest, fees and income of $3,722,381.
Net
income before appro¬

frozen foods, dairy
interest in canned

year ago

the

For

remained close to the similar 1958 week.
Grocers

in

located

'

1958, the corporation reported in¬

+4 to +3; New England +3 to +7; East South Central +2 to
+6; South Atlantic +1 to +5; West South Central —1 to +3.
Women shoppers were primarily interested in cotton dresses
and sportswear and appreciable gains over last year prevailed;
interest in lingerie and accessories was well over a year ago.
Anticipating Father's Day, shoppers stepped up their buying of
men's furnishings and sportswear and sales of tropical suits and
slacks noticeably exceeded those of last year. Volume in children's
Summer merchandise advanced substantially from a week earlier
and good year-to-year increases were maintained.
Furniture stores reported higher sales than both the prior
week and last year in outdoor metal tables and chairs and most
upholstered lines. Volume in air conditioners rose sharply from a
week earlier and dealers' stocks were noticeably reduced.
There
were moderate gains over both the prior week and last year in
automatic washers and dryers. While the call for floor coverings
rose appreciably from a year ago, purchases of linens and draperies

were

Associations,

California, Texas and Colorado.

per¬

corresponding week in 1958, production of reporting mills
7.3% above; shipments were 10.1% above; and new orders

orders

use

to

centages: Pacific Coast +8 to +12; Middle Atlantic -f 7 to +11;
East North Central and West North Central +5 to +9; Mountain

was

The company may

company.

also

a year ago.

2.4% above; shipments were 0.3% below,
11.2% below. For the latest week, as against

new

a

minority interest in the capi¬
stock of American Savings
Dallas, Tex.
The balance of the proceeds will
be added to the general funds of

5%

were up

varied

Compared with the previous week ended May 30, production

reporting mills

the

.

outstanding

purchase the

to

and

plies, air conditioners, and Summer food specialties. Purchases of
new passenger cars were sustained at a high level and marked
year-to-year gains remained, according to scattered reports.
The total dollar volume of retail trade in the week ended
June 10 was 5 to 7% higher than a year ago, according to spot
estimates collected by Dun & Bradstreet, Inc. Regional estimates

were

duction.

was

Christi, Texas; to repay two bank
loans; to pay off the unpaid bal¬
ance of the purchase pricetof the
company's new office building;
to make an advance to a-sub¬
sidiary to acquire a lot in Dallas;

and women's lightweight

below

Savings

Loan Association of Corpus

and

Prairie, Texas.

sumer

orders of these mills were

production.
Unfilled orders of reporting mills
For reporting softwood mills, unfilled
equivalent to 21 days' production at the current rate,
and gross stocks were equivalent to 42 days' production.
For the year-to-date, shipments of reporting identical mills
were 2.6% above production; new orders were 3.8% above pro¬

the

the common stock of First

Hot weather throughout most of the nation encouraged con¬

shipments of 470 mills reported to the National Lum¬
were 3.5%
above production for the week

'

proceeds from the sale of
the stock will be used by the com-*
pany to acquire substantially all
Net

Summer Merchandise Sales Stimulate Retail Trade

amounted to 45% of stocks.

of

stock of San Diego Imperial

Corp. at $9.25 per share.

6 Loan Association of

Week

ber Trade Barometer

orders

mon

prior week.

the

Shipments 3.5% Above Production
For June

13.8%

shares of the com¬

fered 1,400,000

in the similar

50,853 ears or 6.9%

sponding week in 1958, but a decrease or
below the corresponding week in 1957.

Lumber

underwriting group headed

Trading was somewhat discouraged by
favorable crop news and the possibility that next year's harvest
would exceed domestic and export demand. United States exports
of cotton during the week ended last Tuesday were estimated at
46,000 bales by the New York Cotton Exchange Service Bureau.
This compared with 39,000 bales in the prior week and 122,000 in
the similar week a year ago. For the season through last Tuesday
exports amounted to about 2,418,000 bales, compared with 4,951,000
below

Loading of revenue freight for the week ended June 6 totaled
682,624 cars, the Association of American Railroads announced.
This was an increase of 69,243 cars or 11.3% above the corre¬

ended June 6.

appreciable decline in export buying occurred. There were
domestic and export buying of rice and

supplies were reduced; rice prices were unchanged from the
prior week.
While sugar trading advanced moderately, prices were un¬
changed. Although coffee trading picked up at the beginning of
the week, it slackened at the end of the period and prices were
steady. Wholesalers reported a slight increase in purchases of
cocoa and. prices advanced somewhat.
Despite a dip in salable receipts in Chicago, hog prices de¬
clined during the week as hot weather slowed trade* There was a
slight decline in cattle receipts and steer prices matched those of
a week earlier; trading in steers lagged again. Lamb prices slipped
somewhat and trading was moderately lower. In contrast to the
;dip in hog prices, lard prices moved up appreciably during the
week.
*
Prices on the New York Cotton Exchange finished moderately

and power

Imperial Gorp,

jointly by White, Weld & Co. and
J. A. Hogle & Co. on June 17 of¬

moderate increases in both

11.5% Above 1958 Week

Thursday, June 18, 1959

.

.

Common Stock Offered
An

flour

week and prices slipped slightly;

buyers were inactive during the
an

f^r ahead as October for cold-rolled sheet.

placed orders as

sluggish.
•
anticipation of new crop offerings at lower prices,

In

afraid to commit too much
tonnage because or the production and delivery problems that
usually develop if there is a strike.
"Iron Age" said the amount of hedge buying for third quarter
delivery is hard to gage. One sheet mill feels customers will take
tonnage booked in July and August if there is no strike, but will
cut back on new orders for September. Some major users have
no

.

S. Diego

higher.

moderately

were

The State oi Trade and Industry
is

Chronicle

1959

net

sales

compared with $21,792,000
and
$631,000, respectively, in the sim¬
ilar period a year earlier. In the

complete'"year ~1958, the"
were

figures

$72,701,000 and $3,281,000.

Giving effect to completion of
1959, capitali-

thds sale, April 30,

zation consisted of: $12,367,000 of
debt;^ 15,000 shares of $100 par
value preferred stock and 3,529,630 shares of common stock.

Volume

189

Number

5856

.

.

The Commercial and Financial Chronicle

.

(2765)

Indications of Current

Business Activity
AND

STEEL

INSTITUTE:

Week

Indicated- Steel operations
■Equivalent to—

(per cent capacity)

Steel

(net

ingots and castings

AMERICAN

PETROLEUM

Crude-oil

and

42 ^gallons
Crude

Gasoline

output—daily average

§2,631,000

(bbls.

Month

Week

(bbls.)

average

June

!i8,280,000

June

(bbls.)—

29,415,000

June

.

1,956,000

ASSOCIATION

OF

AMERICAN

CIVIL

ENGINEERING

2,644,000

7,202,625

7,200,225

7,888,000
28,501,000

7,722,000
27,003,000
1,759,000

7,690,000

Private

:

>

.

construction

"

1,700,000

•

11,995,000

6,663,000

6,517,000

6,775,000

203,140,000

208,419,000
21,616,000

193,025,000

25,063,000

87,655,000

93,037,000

55,553,000

62,810,000

102,496,000
55,615,000

Rc-iigious

613,381

Social

177,900,000

190.400,000

270,300,000

137,800,000

225,200,000

304,958,000

211,800,000
58,500,000

104,300,000

168,200,000

196,178,000

33,500,000

57,000,000

108,780,000

252,500,000

Juno 11

_

All

EDISON

ELECTRIC

Electric output
FAILURES

June

8,525,000

8.150,000

8,350,000

6

7,725,000

380,000

.360,000

318,000

388,000

June

6

150

.122

158

T35

13.023,000

12,684,000

12,109,000

311

254

INDEX—FEDERAL RESERVE

INDUSTRIAL)

AND

DUN

—

COMPOSITE

PRICES:

Electrolytic

J.

QUOTATIONS):

.....

Lead

(New

Lead

(St.

tZinc

(delivered)

Zinc (East St:

Aluminum

MOODY'S

a

.

c';

v

5.967c

$66.41

$66.49

$37.50

$37.17

$33.83

$35.50

31.100c

31.125c

31.150c

28.675c

29.350c

28.375c

12.000c

12.000c.

11.000c

11.800c

11.800c

11.800c

10.800c

(primary pig.
(New York)

.9.9.5",o )

PRICES

—

DAILY

11.500c

11.500c

11.500c

10.500c

June 10

11.000c

11.000c

11.000c

June 10

24.700c

24.700c

24.700c.

104.750c

104.625c

June 1G

83.58

83.56

102.625c

—

June 16

83.42

95.26

86.11

36.38

87.32
90.48

89.37

86.24

87.18

95.92

31.66

82.03

32.77

June 16

85.20

85.33

i

———

86.38

85.33

35.33

86.51

97.78

June Hi

87.36

88.40

89.37

100.0

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds

June 16

-

June 16

4..12
y

4.12

4.13

4.70

4.68

4.61

•

""

4.46

4.38

4.55

4.46

3.77

4.70

4.69

4.62

MOODY'S

Group
INDEX

COMMODITY

———

5.02

4.96

4.54

4.76

4.68

June 16

4.76

4.76

4.67

May
Total

4.53

4.46

June 16

—

389.4

390.1

386.4

(tons)(tons)

Production

Unfilled .orders

—~—

—

(tons) at end of period

348,856

350,614

332,434

6

2.95,007

326,467

313,894

June

—

6

6

88

97

94

AVERAGE

.

548,933

497,831

525,874

110.29

110.61

ROUND-LOT

TRANSACTIONS

ACCOUNT

FOR

Transactions

——1

Gttier sales

-———1

109.82

Other -transactions

Total

-Total
"

off

■;

at

28G.835

Other

foods

Food

at

Gas

fuels

Solid

-

*

a

and

fuel

oil

2,607,280
446,100
2,201,290
2,647,490

1,594,440
349,040
1,243,410
1,592,450

Other

376,270

415,170

550,100

37,200

and

-.Other

Total
Total

sales

477,600

446,100

355,270

351,400

506,700

503,300

435,370

388,600

Personal

535,542

Reading and recreation—;
Other goods and services

—.—.———

round-lot

transactions for account

Total purchases

Short

108,110

133,250. <>
5575,100

591,156

985,500

1,008,350

786,916

——

3,-188,100

4.317,800

3,678,360

2,545,152

495,460

622,520

(559,450

May 23

3,276,939

3,731.100

3,431,760
4,091,210

582,000
2,185,966
2,767,966

—

sales

May 23

,

3.772.149

4,353,620

BOT

DEALERS

EXCHANGE
Odd-lot

sales

.Number

-Dollar
Odd-lot

ON

EXCHANGE

Y.

N.

shares

:

—

of

•Customers'

short sales—

Ftound-lot
Number

•

May 23

—-—.—•

—

—

EXCHANGE AND

-FOR

Total

ACCOUNT

round-lot

.Short

sales

1,047,318
$46,619,209

1,628,061

1,846,943

1,967,040

1,057,724

OF

MEMBERS

LABOR—(1947-49

=

Domestic

Exports

ttLondon,

commodities.

,

——,

ttThree

127.7

139.1

137.3
116.0

140.3

134.2

103.8

103.8

104.0

136.7

130.9

107.0

106.7

107.8

109.1

99.0

98.2

132.0

129.8

91.8

91.9

144.9

J 34.0

186.1

192.0

127.6

*149.2

142.7

138.3

130.0

129.7

128.5

117.3

117.0

128.2

—

127.3

127.2

(E. & M. J. QUOTATIONS)—

refinery
(per pound)
refinery (per pound)

months,

long

(per

London

31.155c

-

24.298c

28.814c

29.397c

21.944c

£236.206

£240,017

£178.798

£236.575

£240.324

£180.756

long ton)

(per

31.300c

——

—

ton)

tfTliree months,
Zinc

10.500c

£77.353

£72.688

£61.854

tfZinc, London,

£75.875

£72.460

£62.262

91.375c

91.375c

3G1.250

448,820

488~630

529^790

36l~250

Gold

599,580

659,290

692,910

378,790

Quicksilver

Silver

—

York

New

(per

Straits.

ounce,

fAntimony,

(per
New

Antimony
Antimony

pound),

refined

741,590

737,780

837,500

16,290,710

19,186,510

17,619,350

12.180,160

May 23

16,858.040

Cobalt,

19,128,100

18.357,130

13,017,660

Aluminum

Cadmium

118.8

90.7

95.2

94.563c

$35,000

$35,000

$240,545

$229,231

32.590c

32.590c

32.590c

29.000c

29.000c

29.000c

boxed Laredo.—
ounce)

29.500c

29.500c

29.500c

deliver

ton

;—

$77,000

$77,000

$68,154

$1.20000

lots)..

lots)

$1.20000

$1.20000

$1.30000

—

Not Available

ingot

$1.75000

(per

-

-

•"Nickel

(per

pound)—

June

107.2

107.3

107.8

101.3

101.5

102.8

114.9

June

127.7

127.8

128.1

125.0

MIDLAND

BANK

""Includes 943.000 barrels of foreign crude runs.
SBased on new annual capacity of 147,633,670 tons
as of Jan.
1,'1959, as against Jan. 1, 1958 basis of 140,742,570 tons.
tNumber of orders not reported since introduction of
Monthly investment Plan.
fPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-half cent a pound.
~

fDomestic

five

$24,700

$24,000

35.250c

35.250c

35.250c

74.000c

74.000c

$2.25

$2.25

£46,298,000

£18,152,000

$2.00000

112.9

June

$26,100

$24,700

$2.25

primary Tig
pound)

$26,800

aver¬

-—_————

grade

$1.75000

$26,800

74.000c

pound)
99'/J>

Bismuth

102.517c

$35,000

99',b

Magnesium
119.7

76.10UT

$2.81572

$245,000

grade (per pou£d)—
grade ingot weighted

97(1>
(per

Aluminum,

91.1

(per

pound,

(small

79.193d

$2.81653

bulk Laredo

(per pound),
(per

88,625c

79.100d

$2.81454
103.060c

U. S. price)
flask of 76 pounds)
York,
boxed

(per

567,330

age

10.000c

and

Silver,
Silver,
Tin,

-119.4

—

three months (per long ton)
Sterling Exchange—
New York (per ounce)
London (per ounce)
Sterling Exchange (check)

529,790

90.5

£72.473

11.000c

488,630

119.3

£70.418
11.500c

448,820

June

11.512c

£72.137

11.000c

14,088

2—— June

11.712c

10.983c

£69.048

£71.691

ton)

Louis

11.189c

£70.800'

11.500c

1,043,636
$44,130,710

i

long

London (per
pound)—East St.

(per

11.897c

11.705c

ggZinc, prime Western, delivered (per pound)
ttZinc, London, prompt (per long ton)

8,809

U. S. DEPT. OF

products

128.7

118.5

117.7

—...

Platinum,

~-

.112.4

149.6

——

prompt

1,958.231

100):
.

136.6

107.3
114.3

145.3

Cadmium

—

120.7

114.8

May:

$111,318,648

7,176

(SHARES):

—

Commodity Group—•

METAL PRICES

May 23
May 23

Total sales

123.6

132.7

192.6

—

care

1,839,767

STOCK

-

112.5

134.4

...

care

$94,690,387

sales—

WHOLESALE PRICES, NEW SERIES

•f\arm

2,297,540 V

$138,508,521

STOCK TRANSACTIONS

sales

Other

■.

2,018,040

$105,944,393

—

SALES ON TIIE N. Y.

ROUND-LOT

Medical

6,566

<

STOCK

TOTAL ROUND-LOT

115.9

113.6

98.9

——

1,621.495

shares—Total sales—

——

111.3

91.9

Priva tc

$85,210,523

•

...May 23
Short sales
May 23
Other sales
—:——
—May23
Round-lot purchases by dealers— Number of shares—
May 23

"

1,786,479

$95,625,800

sales by dealers—
of

134.1

132.4

Public

May 23
May 23

—

—

girls'

ap])arel

——May 23

——

other sales

value

May 23
-—May 23

sales)—

total sales

orders—Customers'

and

Footwear

Common, New York (per pound)
Common, East St. Louis (per pound),
t+London, prompt (per long ton)—
:

STOCK

COMMISSION

purchases)—t

(customers'

dealers

value

^Customers'

Dollar
-

SPECIALISTS

AND

SECURITIES

purchases by dealers (customers'

Number
-•

of

—

by

121.6
120.5

Lead—

STOCK TRANS ACTIONS FOR ODD-LOT ACCOUNT OF OI)D-

•

123.5

117.7

Copper—
—

—

123.7

115.5

195,760

377,390

843,119

May 23
May 23

i

sales

; Total

118,160
724,959

of members—

sales

-Other

Women's

Transportation

May 23
May 23

—

930,477
409,860

108.0

May 23
May 23

sales

973,338
1,340,337

133.8

boys'

57,200

'694,710

$2,313,675

841,400

1,063,200
716,200
347,000

138.7

—

—

558,370

930,640

$1,904,600

139.3

—

29,100

689,630

$780,400

107.0

Men's

the floor—

on

100)

—

operation

466,020

|
————...
———————May 23
1—————
i
May 23

Total purchases,
Short sales

$1,798,600

118.2

May 23

.———

$88,500

128.7
—

May 23

sales

Other transactions initiated

—

=

electricity.,

2,864,820

-—————————...

—

$85,000

104.7

—

—

Apparel

'

12,400

24,100

134.1

—

„——

and

457,210

—

*

$52,000

111.5

home-.-

Housing

Household

—.

*$49,900
11,900
*24,100

112.9

vegetables.

2,407,610

—

$50,200
11,900

123..9

—...

from home ( Jan. 1953

away

348,200

——

12
,r,'t

115.3

Home..—

24G,385

floor—

20

49

of Ajjril:

2,074,130

the

"87

INDEX—J 947-1949=: 100-

2,332,450

.

39

84

300,500

PRICE

May 23

—-,

sales

Other sales

,7

initiated

purchases—

Short

.69

45

37

653,200

Housefurnishings

2,823,290

70

48
48

958,700

—

Rent

—-—

118

1,008,100

2,422,630

——

i

.

455

115

(000's)

—

May 23
—————-———May 23

—

April

munidipal„_—

and

and

specialists in stocks in which registered—

of

Total purchases
Short sales

•

88

405

$1,966,800

of

construction

Fruits

BERS. EXCEPT ODD-LOT DEALERS AND SPECIALISTS
-

43

38

v.

$810,700

Month

—

bakery products
Meats, poultry and fish
Dairy products

MEM¬

OF

32

51
38

*

118

$86,200

—

Cereal and

365,246

110.34

6

June 12

100

—

34

239
,

117.6

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

3.

Food

81

June

53

24,100

items

400.2

June

.——————

Percentage of activity

•..

1;;

consttuction

Month
All

3.75

June

36

March

construction

CONSU3IER

NATIONAL PAPERBOARD ASSOCIATION:
Orders received

228

38

(000's omitted):
TJ.

Private

3.89

4.57

226

—

4.27

June 16

—

5.05

4.77

•3H@

30

ENGINEERING CONSTRUCTION — EN¬
GINEERING
NEWS-KECOIU)
Month of

4.01

June 16

383

COM¬

of

3.56

4.57

63

386

CIVIL

State

4.47

June 16

—

OF

—

Federal

June 16
—

DEPT.

—

COMMERCE

3.97

Juno 16

Public'Utilities' Group

—

—

2.91

June 16

■Industrials

—

_■

Public

-

1,248

92

22

development—
—

—:

omitted)

92.06

June 16

Group

17

1,254

'

CASH DIVIDENDS—PUBLICLY REPORTED BY
U. R.
CORPORATIONS—U. S. DEPT. OF

88.27

V.

13

93

__

99.68

86.11

Juno 1(;

-Group

and

public

Retail

103.13

88.13

June 15

Industrials

HI

;

Wholesale

96.54

89.37

87.86

June 16

—————

89.23

June 10

—

81

364

73

.

94.875c

AVERAGES;

—

25

71
341

121

enterprises

INVENTORIES

Total

146
470

545

systems

NEW SERIES —Month
(Millions of dollars):

24.000c

,

•

26

132

—

Manufacturing

'

32
18

124

39

10.000c

:

June 10

———

U. S. Government Bonds.—

Average corporate

—

at—

at.

.1
—

.........

service

other

I-'.

88

;

MERCE

23.025c

12.000c

at————— June 10

Public ""Utilities

All

24.600c

June lo

„—

—___————-—_—.—

at-"——.'——.

_I

institutional

water

Conservation

BUSINESS

.

June 10

June 10

at

Louis)

BOND

Pul4ic

m.

'►'•»f':

'

6.196c

$66.41

at———————- June 10

York)

Louis)

Straits-fin

/

.

copper—

Domestic .refinery at^.—
Export refinery at—'

■;

i

M.

6.196c

$66.41

9

—

6.196c

9

:

438
:

1,435
-

service
nonresidential buildings

Wa tor

9

51
:

15

„

.^—Ill-

and

and

143
24

—III~II"II~
IIII—III"

Administrative and

Sewer

12

43
-I.

30

Sewer
—

&

314

36

448

--

295

40

46

67

Military facilities
Highways

&

June
(per lb.)„——:
——
Pig iron (per gross2-^-—-—--• June.
Scrap steel (per gross ton)-—————u June

(E.

13,503,000

June 11

Finished-steel

METAL PRICES

Hospital

65

165

357

Educational

*

Other
June 13

——

<

Industrial

INSTITUTE:

(in 000 kwh.).—

BRADSTREET, INC
IRON AGE

6

June

i

AVERAGE Vss 100——

(COMMERCIAL

II™

——III
I_III_

-

...

buildings
Nonresidential buildings

67

14

,

private
construction

209

'

other

Public

120

201

.: 4i

——

:
-

126

41

telegraph
public utilities

Other

285

146

46

construction

utilities
Railroad
Telephone and

272

•:

.

213

.

Residential

Pennsylvania anthracite (tons)
SYSTEM—1917-49

recreational

Public

(U. S. BUREAU OF MINES):
Bituminous coal and lignite (tons)

DEPARTMENT STORE SALES

and

204

161

institutional

Miscellaneous

June 11

51

156

698

71

and

493,462

June 11

355
;

159

—I—IIII

677,398

«,

1,015

629

320

.

590,311

COAL OUTPUT
;

_

687,726

Farm

56

1,421

687

buildings

Educational

$505,535,000
200,577,000

318

154

—

IIIIIIIIIII

Other nonresidential
1

2,752

1.340

376

IIII

2,918
1,714

61

IIII—

4,000

1,867
_

4,172

3,160

buildings and warehouses
restaurants, and garages

Stores,

22,344,000

$415,600,000

4,595

1,430

Commercial

Hospital

$315,700,000

Ago

—IIIIIIII

alterations

579,559

$522,800,000

Year

Month

OF

Industrial
Office

54,669,000

ahd

569,430

—-

DEPT.

(nonfarm)_

Nonhouskeeping
Nonresidential buildings

12,251,000

203,605.000

June 11

.

S.

(in millions):

dwelling units

Additions

1,725,000

7,141,000

June 11

.

New

27,165,000

12,372,000

24,030,000
97,544,000

of that date:]

are as

Previous

construction

of cars)—June

-

State and municipal
Federal

new

construction
Residential buildings

682,624

.

construction

Total

ENGINEERING
*

—

Public-construction"

■

1,751,000

CONSTRUCTION—U.

LABOR—Month cf May

June

(no.

of quotations,

cases

either for tlM|

are

Month

BUILDING

6,255,935

June

_

CONSTRUCTION

•NEWS-RECORD:
Total U. S.

64.9

RAILROADS:

Revenue
'

in

or,

Ago

93.4

*2,604,000

June

freight loaded (number of cars)
Revenue freight received from connections

Dates shown in first column

that date,

Latest

12,847,000

.

.Distillate fuel oil

(bbls.) at
Residual fuel oil (bbls.) at—

on

Year

Ago

*92.0

-

-

month ended

production and other figures for the

cover

Private

7,032,325

Distillate fuel oil output (bbls.)
June
Residual fuel oil output (bbls.)
June
Stocks-at refineries, bulk terminals, in transit, in pipe line
Finished and unfinished gasoline (bbls.) at
June
Kerosene (bbls.) at
June

-

Previous

month available.

of

June

(bbls.)_

output

§92.9

—June21

or

or

INSTITUTE:

condensate

output

Kerosene

June 21

—

each)
to stills—daily

runs

■

tons)—

following statistical tabulations

latest week
week

Latest

AMERICAN" IRON

The

33

Processed

All

foods

commodities other than farm and foods—

•Revised

figure.




NEW

CAPITAL

ISSUES

IN

GREAT

LTD.—Month

tons

or

more

BRITAIN
of

but

May._

less than

£43,775,000
carload lot

boxed.

§§Delivered where

freight from East St. Louis exceeds 0.5c. **F.o.b. Fort Colburne U. S. duty included,
ttAverage of daily mean and bid and ask quotations per long ton at morning session
of London Metal Exchange,
Jtlncrease all stocks.
0

The Commercial and Financial Chronicle

.

.

Thursday, June 18, 1959

,

(2766)

34

★ INDICATES

Z

Securities Now in
Academy Life Insurance

Co.

(6/19)

1

of common stock

filed 400,000 shares

Widmayer Inc., Washington, D. C.
order proceedings instituted by the SEC.

drawn

of

the

balance

of

the

will

issue

be

offered

stock

.

America /

,

cfe

i

•

-

A".-; —'

/

x.r-

★ Baird-Atomic, Inc., Cambridge/ Mass.
June 17 filed 180,000 shares of common taock- (par $1).
Price—To, be- supplied by
used

to

retire

bank

loans

amendment Proeeeds^-To be
and for construction of new '

Underwriter—White, Weld & Co.; New

plant facilities.

York. ,'

*

-

:

-

Ballard Aircraft Corp. *•• •

to

/

Underwriter—None. Statement effec¬

options.

tive March 31.

-

' ""

•••

* '

"

April 17 filed 300,000 shares of common stock (par $1).^

Price'^$3,25 per; share. * Proceeds—To; develop and
manufacture aircraft embodying the body

the

lift principle,

Underwriter—Firm originally mentioned has with¬

etc.

drawn. ; Note^SEG to hold
statements in prospectus.

public and to holders of stock options. Office—134 East
Second Ave., Anchorage, Alaska. Proceeds—^To discharge
a bank loan; for drilling and exploration; and for general
corporate purposes. Underwriter — National Securities
Corp., Seattle, Wash. Statement expected to become ef¬

hearing'June 18 regarding
.
V'"'V"
,

Bankers Preferred Life I nsurance Co.

Jan. 30 (letter of

notiifcation) 100,000 shares of

common

(par $1.60). Price—$3 per/ share. Proceeds—For
expenses incidental to operation of an insurance com¬
pany.
Office—Suite 619, E. & C. Bldg., Denver, Colo.
Underwriter—Ringsby Underwriters, Inc., Denver 2,

stock

fective around June 20.

Apache Oil Corp.
coio.
May 25 filed 350 units of participation in the Apache
e Basic Atomics Inc.
Oil Program 1960 and 70,000 rights for the purchase of
common stock (par $1.25).
March 5 filed 444,246 shares of common stock (par 10
The offering is being made
only to the stockholders of the company. Each subscrip¬
cents). Price—At prevailing market price, in the Overtion to a unit in Apache Oil Program 1960, will entitle
the-Counter Market. Proceeds—To selling stockholders.
the subscriber to subscribe also to 200 rights for the
Underwriter—None. Statement has been withdrawn.
purchase of one share per right of the company's $1.25
Basic Materials, Inc.
par value common stock. Warrants evidencing the rights
April 9 (letter of notification) 1,200,000 shares of com¬
will be nontransferable prior to Aug. 16, 1960, and will
mon
stock (par 10 cents).
Price-—25 cents per share.
expire at 2:00 p.m., (CST) on Jan. 31, 1962.
Unless
Proceeds—For mining expenses. Office—c/o Harold A.
Apache Oil Program 1960 commences operations on or
/Roberts, President, Arroyo Hondo, Santa Fe, N. Mex.;
before June 30, 1960, all unexercised rights will be void
Underwriter—Hyder, Rosenthal & Co/ Albuquerque,
as of 2:00 p.m.
(CST) on that date, and their purchase
N. Mex.
price will be refunded. Price—$12,000 per unit. Pro¬
Bausch & Lomb Optical Co.
ceeds
For general corporate purposes.
Office — 523
May 8 filed $8,542,600 of convertible debentures due
Marquette Avenue, Minneapolis, Minn. Underwriter—
1979, being offered for subscription by common stock¬
APA* Inc., the corporation's subsidiary.
holders on: the basis of $100 principal amount of deben¬
Approved Finance, Inc. '
t'
tures for each. 10 shares held on June % 1959; rights
June 3 (letter of notification) 12,000 shares of common
to expire on June 18. Price—100% of principal amount.
stock (no par) to be offered to stockholders of record
Proceeds—To retire all outstanding bank loans maturing

of common stock (par $1),
to be offered publicly and
to be reserved for sale4o the holders

Feb. 25 filed 1,431,200 shares
ot which 1,000,000 shares are

.

DeCoursey-Brewis

the company's parent (payment for the
by such debenture holders may be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares purchased
for cash or for the 6% debentures of the parent at the

Minerals Ltd.,
shares

Price—$1.25

share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—To be named by amendment

per

—

• Alsco, Inc.
(6/22)
May 15 filed $4,000,000 of 5*4% convertible subordinated
debentures due June 1, 1974. Price—100% of principal

amount. Proceeds—To reduce short-term bank loans; to

liquidate the balance of loans from the Estate of Dora
Sugar Weinstock advanced for construction purposes;
to prepay an instalment on funded indebtedness; to re¬
deem all outstanding 1,089 shares of $100 par preferred
stock of a subsidiary; for capital expenditures; and for
working capital.
Office—225 South Forge St., Akron,
Ohio.
Underwriters — Hirsch & Co. and Bache & Co.,

June

the basis of one new share- for each
Z Dec. 31, 1959, for working capital and other corporate
Rights expire July 7, 1959.
Unsub¬
purposesV^^Ur^rwritcr^— Stone::&/WebsteV^eeurities
scribed shares will be offered to the public. Price—To
Corp., New York. •
ZvJWZft/Z/■ Z:;/Z/
' Z"-^ v"
stockholders, $20 per share; to public, $21.50 per share.
• Benson-Lehner
Proceeds—To repay 3 % % series A subordinated deben¬
Corp. Z(6 • 22-26)•/ - •
five

York; and Equitable Securities Corp., Nash¬

16,

1959,

shares

on

held.

May 4" filed 89,620 shares of common stock,- of which
76,620 shares are to be offered for subscription by com¬
mon stockholders of record April 30, 1959, on the basis

tures

and for working capital.
Office—246 N. High St.,
Columbus, Ohio. Underwriter—For publicly offered
shares, Vercoe & Co., Columbus, Ohio. V. /

ville, Tenn.
Alscope Explorations Ltd.
26 filed 1,000,000 shares

-f- Formerly

-

Anchorage Gas & Oil Development, Inc.

and

:

shares of common stock, of which,
the company proposes to .issue 126,072 shares to A.M.I.
Inc. for the latter's property and assets, and the re¬
maining 166,354 shares are to be issued upon the exercise

May 27 filed 450,000 shares of common slock; part of
which will be offered, at a price of $1.50/ per Share, to
stockholders of record June 1, 1959, in the ratio of one
new share for each three then held.
Unsubscribed stock

Alaska Mines & Metals Inc.

both of New

in Name

Change

underwriter.

i.'C

-

March 2Hied 292,426

Ltd.
March 23 filed 745,000 shares of capital stock (no par),
of which 500,000 shares are to be sold for the account
of the company, and 245,000 shares by the holders there¬
of.
Price—30 cents per share.
Proceeds—For explora¬
tion and development program.
Office — 2100 Scarth
Street, Regina, Saskatchewan, Canadar- Underwriter—
Cumberland Securities, Ltd., Regina, Canada;

Aerojet-General Corp. (6/25)
May 27 filed 175,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
pay advances from General Tire & Rubber Co. Office—
6352 North Irwindale Ave., Azusa, Calif. Underwriter—
Kidder, Peabody & Co., New York.

rate of one for each five shares purchased.

,

Amican Petroleum & Natural Gas Corp.

•

431,200 shares are
of 6% debentures due 1962 issued by

as

United States Telemail Service, Inc.

Stop

REVISED

Automatic Canteen Co. of

corporate purposes. Office—Salt Lake City, Utah. Un¬
derwriter—Amos Treat & Co.; Inc., New York, has with¬

cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,
and Williams,

Underwriter—None.
Inc.

ment

(par five

ITEMS

3

ISSUE!

cattle; for "Improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.
Otfice—1301 Avenue
Cisco, Tex. Underwriter—None.
Robert Kamon is President.;
//ZZ Z UrV-/ZZZ/Z • 'Z^/'Z

375,0U0 shares of common stock (par
Price—$4 per share. Proceeds—To purchase equip¬
and supplies and for working capital and other

$1).

Advanced Research Associates, Inc.
Dec.

Office—

Feb. 17, 1908, filed

19, 1959;
rights to expire on or before July 7. Price—To be sup¬
plied by amendment. Proceeds— For additional working
capital. Ofifce—405 Exchange National Bank Bldg., Den¬
ver, Colo. Underwriters — Boettcher & Co., Inc., and
Bosworth, Sullivan & Co., Inc., both of Denver, Colo.
V Accurate Specialties, Inc. (6/22-26)
Miay 12 filed 95,000 sharps of common stock (par 10
cents). Price—$2.50 per share. Proceeds—For additional
equipment, operating expenses, working capital and pay¬
ment of notes. Underwriters — Milton' D. Blauner & Co.,
Inc. and Stanley Heller & Co., both of New York.

PREVIOUS

;

for one share of Massillon common.

American Telemail Service,

each share held of record on or about June

ADDITIONS

SINCE

■

Ridge Avenue, Evanston, 111.

2020

30

cents) to be offered for subscription by common stock¬
holders on the basis of 0.525 shares of additional stock
for

•

common

shares of common stock (par

March 31 filed 310,000

r;

Bldg., Edmonton, Canada. Underwriter—None in United
States; Forget & Forget in Montreal, Canada.
State¬

of three new shares for each 10 shares then held.. Rights
expire/July 7. Price—$6.75 per share to stockholders. The
remaining 13,000 shares will be sold for account of selling
mon
•stockholders at $7 per share. Proceeds—For additional
Proceeds—For mining expenses. Office—c/o Hepburn T. Z
working capital and Other general corporate /purposes;
Armstrong, Round Up Heights Cheverme Wyo. Under¬
/ including research and
development.
Office — 1860
writer—Bruno-Lencher, Inc., Pittsburgh, Pa. / ; .
Franklin Street, Santa
Monica, Calif. Underwriter —
• Arnav Aircraft
■i Bear, Stearns & Co., New York.
No public offering, v/
Associates, Inc.• • '-/./'-.vZ •
May 14 (letter of notification) 150,000 shares of common

ment effective June 1.

stock

March

of

capital

stock,

of

Armstrong Uranium Corp.1

which 700,000 shares are to be offered publicly in the
United States, and 300,000 shares in Canada. Price—Re¬

Jan.

lated to the then current market price on the Canadian
Stock Exchange (31 cents per share on March 16). Pro¬
ceeds—For properties, drilling costs, working capital and

general

corporate

Office

purposes.

—

303

Alexandra

.

/

r

16

(letter of notification) 3,000,000 shares of com¬
stock (par one cent). Price — 10 cents per share.

★ Bestwalt Gypsum Co.
(par 10 cents). Price—$2 per share. Proceeds—To
May 22 (letter of notification) 400 shares qf common
certain indebtedness, to finance increased inven¬
stock (par $1). Price—At the market on the New York
tories, for working capital, etc. Business—Manufacturers
Z- Stock Exchange. Proceeds—To go to a selling stock¬
of hydraulic fluid line fittings and related
products for
holder/Office—120 E. Lancaster Avenue, Ardmore, Pa.
the aircraft and

repay

American

Asiatic

Oil Corp.
100,000,000 shares of capital stock. Sub¬
sequently reduced by amendment to 20,000,000 shares.
Price—One and one-quarter cents per share. Proceeds—
to selling stockholders.
Office
Magsaysay Building,
San Luis, .Ermita, Manila,
Republic of Philippines. Un¬
Nov. 24 filed

—

missile industries. Office—32 Industrial

-

Underwriter—None.

Ave., Little Ferry, N. J. Underwriter—Hamilton, Waters
& Co.,, Inc.,
Hempstead, L. I., N. Y. Offering expected
any day.
'r;-.'/i"'-

Oof

.

derwriter—Gaberman

&

Hagedorn,

Inc.,

Manila,

Re¬

public of Philippines.

under

agreements

with

various policy holders
in American Buyers Life Insurance Co. and
Americap
Life Assurance Co. (both of
Phoenix)

permitting them
to purchase stock at $1.25 per share.
Sales personnel
have been given the right to purchase stock at
$1.25
per share up to the amount of commission they receive
stock sales made by them.] Proceeds—For the
opera¬
tion of other branch offices, both in Arizona and in other
on

states.

Office—2001 East

Roosevelt, Phoenix, Ariz.

Un¬

derwriter—None.
American Commercial

Corp.

May 14 (letter of notification) 250,000 shares of preferred
stock (par 50 cents) and 50,000 shares of Class A com¬
mon stock
(par 10 cents) to be offered in units of five
shares of preferred stock and one Class A common share.
Price—$6 per unit.
Proceeds
For general business
purposes. Office—744 Broad St., Newark, N. J. Business
—

—To finance accounts receivable. Underwriter—Phoenix

Securities, Montclair, N. J.
American

Hospital Supply Corp.

April 20 filed 20,610 shares of common stock (par $2) to
in exchange for common stock of Massillon
Co.

on

the




basis

of

nine

shares

of

American

(letter of notification)

1

;

15,000 shares of common

stock

(par $1) to be offered for subscription by stock¬
of record Nov. 1, 1958 on the basis of one new
for each four shares held; unsubscribed shares
will be offered to current creditors in pavment of all

holders

vertible preferred stock

share

(par

cent)
stock (par
one

and 50,000 out¬
one cent).
The

standing shares of common
preferred shares are to be offered for public sale for the
account of the company and the common shares will
be offered for the account of a selling stockholder. Price
—To be supplied by amendment. Proceeds—To acquire
new bowling centers and increase
working capital. (part
to be used in defraying cost of acquisition of stock of
owner of a Brooklyn
(N. Y.) bowling center.
Office—
135 Front St., N. Y.
Underwriter — To be named by
amendment.

Offerinir—Expected in two weeks.

Astronautics Engineering Corp.
May 28 (letter of notification) 150,000
stock (par five cents). Price—$2 per
For working capital. Office—500 W.
Fla.

Underwriter

—

Charles

N. Y.
•

Plohn

■

■;

(7/6) shares of common
share. Proceeds—
18th St., Hialeah,

&

-

Co., New York,
• •
- ■;

Azalea Mobile

Homes, Inc.
May 21 (letter of notification) 300,000 shares of class A
common stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds—For opening one additional trailer sales lot and
for construction cost of mobile home park. Address—3455

Australian
Jan

i?

At par

(56% cents

per

of

share).

common

stock.

part of claims, at the rate of

Price—-

Proceeds—To purchase

one

share for each $4

of claims discharged; rights to expire about two weeks
after mailing of offer. Price—$4 r~~ share.
Proceeds—
*

To pay current creditors.
Addres.
P. O. Box-506,
Bridgehampton, L. I., N. Y. Underwriter — None. Offer¬
ing—Has been delayed. ..."
\.v; . *
: -

ic British Oxygen Co.
.

filed

Ltd.

-

>

;

American

depositary receiots for 60,000
shares of ordinary registered stock. Depositary—Morgan
Guaranty Trust Co. of New York, i Z
Z

June

10

•

Brockton

Edison Co.

( 6/23)

May 7 filed $5,000,000 of first mortgage and collateral
trust bonds due

April 1, 1989. Proceeds—To prepay its
loans, to purchase $2,014,160 of de¬
benture bonds and $1,665,100 of common stock of Montaup Electric Co/ and for construction purposes. Under¬
writer— To
be
determined
by competitive "bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Stone &
Webster Securities Corp.; Kuhn, Loeb & Co., Salomon
short-term

Bros.

&

bank

Hutzler

and

Wood

Struthers

&

Co.

(jointly);

Kidder, Peabody & Co., White Weld & Co. and Shields
& Co.

Grazing & Pastoral Co., Ltd.
4 ooo oon

or

.

Highway, Norfolk, Va. Underwriter—Palombi Securities
Co., Inc., 37 Wall St., New York, N. Y.

be offered
Rubber

Bowling Centers, Inc.

23

Nov. 24 filed 300,000 shares of 20-cent cumulative con¬

American Buyers Credit Co.
Nov. 13 filed 5,000.000 shares of common
stock, of which
4,545,455 shares of this stock are to be offered for public
sale at $1.75 per share. [Shares have been issued or are
issuable

Associated

;■*■/ Z. Z.

Bridgehampton Road Races Corp.

(jointly); Eastman Dillon, Union Securities & Co.
Bids—Expected to be received up to U a.m. (EDT) on
June 23 at 49 Federal St., Boston, Mass.

Volume

189

The Commercial and Financial Chronicle

5856

Number

(2767)

35

'

Brookrtdge Development Corp. r
mu
(letter of notification) $200,000 of 6% 15-yeai
convertible debentures; Price—At par ($500 per unit)
Proceeds—For expansion and working capital. Office—
901 Seneca Ave., Brooklyn 27, N.- Y.
Underwriter

other

Dec, 19

•

Wis.

Offering

—Temporarily suspended-by SEC;?.
Buckeye Corp., New York
J ; : :
filed 192,039 shares of 5% cphvertible preferred
stock, series A. (par $10) and 164,299 shares of common

April 28
stock

All of the preferred shares and 99,299

(par $1).

shares

of

be

will

common" stock

issued'in

acqdisitiohs of btisinesses- and Assets; the
65,000 common shares are reserved' for- issuance
Employee Restricted Stock Options. Underwriter
^-i-None.t ■
";-•*<> ;
"•
■ »■'.
V.'other

of which

St.,

50,000 shares are to be offered for public sale
by the company (plus ari additional 8,000 shares to be
offered to officers and employees); and the
remaining
70,000 shares will be offered for the account of d selling
stockholder. Price—To be supplied by amendment. Pro¬

■

WiJson

ceeds—To

prepay $390,000 of 8% first mortgage serial
bonds, to defray the cost of an addition to the company's
Clifton Heights plant, for the purchase of additional
manufacturing and engineering equipment, and the bal¬
ance for
working capital.
Office — Clifton Heights, Pa.

Underwriter—W. C.

★ Centennial Fund,5-''lnc.v-f'v—

,

June 10 filed 800,000 shares of capital stocks Pr ice—At
market: Proceeds—For investment;',' Office—714;-Boston

Organic Chemicals.

Colonial Energy Shares, Inc.,
Boston, Mass.
May 5 filed 1,100,000 shares of common stock.
Price—
At market.
Proceeds—For investment.
Underwriters

Underwriter—Singer, Bean

—White, Weld & Co., New York, and Dean Witter &
Co., Los Angeles, Calif. Offering—Expected late in July.
Colorado Water & Power Co.
Feb. 25 (letter of notification)
$220,000 of 6% unsecured
debentures due April 1, 1964 and 1,100 shares of common

Mackie, Inc., New York. '

March 25 filed

520 per share; Proceeds—For purchase and development
if industrial properties and for working
capital. Office
* Centennisi Management & Research Corp. '
; —Chattanooga,
Tenn.; Under writer—None.
June 10 filed $10,000,000 of escrow agreements;' Proceeds
;r
Chemex Industries, Inc.
k^r-For investment. Office—714 Boston Building, Denver,
May 26 filed 200,500 shares of common stock, of which

Building,- Denver. ColdV:-» Underwriter—None./,* £££-'

.

itock

,

tures

v

Colo._# Underwriter—None.y'.y1

^

\

v

ltOjOOO shares

,

selling;rstockholders...Price-~:$1
finance

^

acquisitions

St.;-Tampa, Fla; Underwriter—Pierce,
Carrison, Wulbcrn, Inc., Jacksonville, Fla.

working capital.
Office—161 East 42nd St., New York, N. Y. Underwriter

—None.-V/'-7Vv/"-"' 1V•

-

•

1

($25 stated value); Price—$25

Finance

Co.

nance

share. .Proceeds—To¬

per

Civic

of stock and $100 of debentures and nine shares of stock.
Price—To be supplied by amendment. Proceeds —
To

Corp.

construct refinery. Underwriter—Lehman
Brothers. New
York. Offering—Indefinite.
'

May 21 (letter of notification) 11,116 shares of common
stock (par $2)
being offered on a share-for-share ex¬
change basis to stockholders of Milwaukee Loan & Fi¬

'

<*.<•' Central Telephone Co.;,(6/25)
June 5 filed 30,000 shares of cumulative preferred stock
.

Underwriter—Associated
Falls, Iowa.

Commerce Oil Refining Corp.
Dec. 16,1957 filed $25,000,000 of first
mortgage bonds duo
Sept. 1, 1968, $20,000,00 of subordinated debentures duo
Oct. 1, 1968 and 3,000,000 shares of common stock to bo
offered in units as follows: $1,000 of bonds and 48
shares

Office—2822 35th

share.';,Ihf,oceeds—To

per

to: increase

and

Water

gether with other funds, will be used to repay advances

Commercial Investors Corp.
28 (letter of notification)
900,000

Nov.

Offer expires on Aug. 1,

1959. Office—633 N.
Underwriter—None.

St., Milwaukee, Wis.

—

Securities 412 Main Street, Cedar

to be offered publicly. The remaining

are

(par $1) to be offered in units of $200 of deben¬
one
share of stock.
Price
$205 per unit.
Office—Suite 421, 901

and

Proceeds—For working capital.
Sherman Street, Denver, Colo.

30,o00 shares are subject to sale under stock purchase
options granted to employees. Price—$3 per share. Proceeds—For purchase of properties, for construction of
additional warehousing space, and for working
capital.

Central American Mineral Resources, S. A.
May 27 filed 620,000 shares of common;;stock, of which
1:500,000 shares are to be offered for the account ;of the X
company and 120,000 shares for the account of certain

/;

stock.

mon

reeds—For

from Central Electric'& Gas Co.; for construction expen¬

^Ar Clifton Precision Products Co., Inc.
June 11 filed 128,000 shares of common stock

ditures; for investment in stocks of subsidiaries; and for

Langley & Co., New York.

•

Chattanooga; Industrial Development Corp.
37,500 shares of common stock.' Price—

&

•

•

12th

June

under

:

South

★ Century Chemical Corp., New York
3 (letter of notification) 100,000 shares of class A
common stock
(no par); Price—$3 per share. Proceeds
For general
corporate'*purposes, including purchase of

connection

With certain

;

Office—144

purposes.

Century Brick Corp. of America
April 6 (letter of notification) 150,000 shares of common
stock.
Price—$2 per share.
Proceeds—To be added to
general funds of the company. Office—1020 G. DanieJ
Baldwin Building, 11005 State Street,
Erie, Pa. Under¬
writer—Summit Securities, Inc., New York, N. Y.

*

S'ano & Go.; 15 William St., New York, N.. Y;

corporate

Lincoln, Neb. Underwriters—Paine, Webber, Jackson &
Curtis, New York;, and Loewi & Co. Inc., Milwaukee,

*

shares of com¬
Price—At par (10 cents per share). Proinvestment. Office—450 So. Main
St., Salt

Continued

(par $1),

on

i.li

hf

ISSUE

NEW
June

18

Philip

(Thursday)

V--;
•A.

(Bids

iiQon

Worcester Gas Light Co

v; lij.

Bids ll:30

Stuart

$7,050,000

CDT)

June 19

Hall

Vocaline

CALENDAR

Inc

Brothers

$40,000,000

Co

Co.

July 6

Debentures
Glore, Forgan & Co.)

and

of

Financial

Common

America, Inc

Western

(Friday)

*

Academy Life

Insurance

Cp._

California

Telephone Co._^

(Offering to stockholders—underwritten by Boettclier & Co., Inc.
Boeworth, Sullivan

and

June 24

Microwave

.Consumers Water Co
......ECommon
■:
;
;J I <H. M. Paysott ft Co.) $286,650
Ozark Air Lines, Inc.—
—.l^lCommon

(Lazard

"»j: j-j

,V

(Filor ,. Bullard & Smyth)

>...

& Co., Lehman. Brothers
Loeb & Co.) $10,600,000

1 Harrison
fft;.

June

22

Blauner

(Monday)
Stanley Heller &

and

Inc.

(Bids

Toronto

(Harriman

S"

—__—

:

■:

'

'V.

;

'

jh-,-'

-

.

f

'
Tobacco

Continental

■y

;

.(Best Securities.

-

Inc.)

$125,000

Central

Class A

Funds for Business, Inc.--——

o,

V

(Paine,

—Debentures
$1,-50,000

•:

,

Red oath and
$680,000

&
.t'

■

Kidder,
'

Peabody

(Ira

"'-

(Auchincloe?.

74,800,,shares

Precision

Ideal

-

.

Peabody
•

{tr ,

ft

Mississippi
(■':

Co.),

Plohn

$615,625

Co.)

&

,

^

l'fO'/t

"to

;

;

(Charles Plohn & Co.

,

~

^

rr-'

Puritan

'r'-

Smith

'•

••

Fanon
"

-

Coiftmon

Electronic

Inc.—*___

..

—Common

Hallgarten & Co: and
Co. i
150.000 shares

ft

.

.

Damroth
(Hccker

Hemphill, Hoyes

Cot)

?/

26

Union

&

Co.)

du

(J.

Rah el

Cliff

'A.

ft

$135,000

Amos Treat ft Co.,

Inc.)

—.Bonds

*•'

•

V\

Terminal

■

29

(Bids 11

Dilbert's

—.Common

Common

Inc

(J,

A. Winston ft

(Thursday)

Darlington

ft

Electronics,

ft

Products,

Worthington

^-J

*

*

^lohn

1(B.

(Monday)

Inc.—_l__Debens.

23

11

a.m.

ft

Co.)

Reid

ft

Co.)

(Kidder,

Common

July 14
(Bids

Hunter Mountain

be

shares

(Tuesday)
EDT)

a.m.

Bonds

$8,000,000

(Wednesday)

Development Corp.
Debentures &

(Myron

A.

Lomasney

(Simmons

$843,750

United

States

& Co.)

(Eastman

ft

Dillon,

Union

July

Common

$630,000

Common
Co.)

$300,000

Plywood Corp

Debentures

Securities

16

$20,000,000

ft

Co.)

$15,000,000

(Thursday)

Corp._L_

:

Debentures

<Emanuel, Deetjen ft Co. and Bachc ft Co.) $5,000,000

(Wednesday)

1

90,000

North Hills Electric Co

Common

invited)

11

Debentures

$3,300,000

Debentures
to

.Common

Peabody & Co., Inc.)

July 15

Co.)

&

Buckingham

Com.

■:—Common

Transportation Inc

(Cruticnden,

Fodesta

Co.)

ft

250,000

shares -

Common

ft

Curtis)

(Cruttenden, Podesta

& Co.)

(Paine,

Superior

Webber,

Window

Jackson

Common

(Cruttenden.

shares

shares

100,000

July 22 (Wednesday)
Northern States Power Co. (Minn.)
(Offering to stockholders—bids to be invited)

Preferred

Co.—

Podesta ft Co.)

August 4

$500,000

Class A Common

Superior Window Co

Pennsylvania

Electric

(Tuesday)
Bonds

Co

(Bids to be Invited)

$500,000

Common
952,033 shares

$15,000,000

'

\

Mission

Insurance

-i

.

Northern

S.hearson.

Co

—

Hair.mill ft Co.)

—

Bids

10

a.m.

CDTj




—Preferred

—;'__Bonds
$20,00©,OOfr

Broadcasting Co
(Harriman Ripley & Co. Inc.)

$1,500,000

Illinois Gas Co
.

Taft

White-Rogers Co.
.

•

$6,000,000

Jersey Central Power & Light Co

(Tuesday)
&

Debens.

(Amos Treat ft Co., Inc.) $750,000

Co., Inc.)

Common

Lomasney

A.

July

$5,000,000

300.000

Com.

Debentures

Trans-Sonics, Inc.

$360,000

Michigan Seamless Tube Co

^

(Bache

&

Common

Industries, Inc

Reading Tube

Bonds.

Corp.

.

(Bids

(Tuesday)
EDT)

Debens.

/

Edison Co._,—
'Bids

Fabrex

$1,440 C00

Bonds

$6,000,000

(Newhard, Cook ft Co.)

Medearis

,..$375,000

.

Fennekohl ft- Co:) $150,000

June
Brockton

Co.)

Common

Corp

(Myron

—Common

Inc

(Charles

Wellington

$1,000,000

Co.)

EDT)

a.m.

Co., Inc. and Netherlands Securities Co., Inc.)
$1,000,000

-Common
$17,150,000

Curtis)

ft

(Charles Plohn ft Co.)
Tower Co..

——Common

Hill,

165.000 shares

Mallinckrodt Chemical Works

$450,000

Montreal Canada

Co.__

Oil

..

Co.)

Properties, Inc

^

Crosby-Teletronics " Corp.

Co/'of Lincoln)

ft

(Offering not underwritten) $500,000

Preferred

Netherlands Securities

and
'

(Fulton

.I^ECommon

Common

40,000 shares

(3. D. Fuller ft Co.i $4,505,600
Hudson Radio & Television Corp

(Monday)

June 30
Trust

Inc.)

11nvestors Funding Corp. of New York-

Co:'of-Lincoln)

Trust

Co.,

Light, Heat & Power Co

v-

Cable Corp

Co.

ft

Design

■

$850,000•

Rahel ft Co; and The First
$1,000,060

Cliff

,

Voss

The First

Products Co.__—

Top

(J.

and

;.

.

Tip

Co.

&

(Wednesday)

Pont

July 13
Debentures

"

r.

Blyth

Cable Corp

July 9

ft

.Common

(Friday)

Jackson

Webber,

'/

V

Radar

and

Rowe Furniture Corp

shares

Industries,

Wire &

(C)iarles Plohn

,\"

.

Common

Corp.—
ft

Jefferson

Tip Top Products Co.————______—^^Bonds

V

Loewi

stockholders—underwritten by The First Boston
Day) 105,927 shares

to

(Paine,

:

?Uj

Staats & Co.), 100.000 shares '

Magnetics,

-

,

R.

,

Brothers;

(Lehman

1

.

.

and

—

Co.

'

Templeton.

,

Curtis

International Recreation Corp

'

&

(Francis I.

$2,000,000

(L. D. Sherman & Co.)

.

\

shares

and Tucker, Anthony & R. L.

.'-—Common
,

175,000

Equipment Corp

June

...

.r(Di'nne-ft-Co.)."$625,009

-t1/. Telemeter
"dOt

'

_

(H. C.) Oil Tool Co
William

-

Corp.

Netherlands Securities,Co.fc Inc.)

and

$875,000
Corp.—

Chemical

(Offering

Wire

Preferred

80,000

June

/-—Common

Corp.^—

Plastic

July 8

(Bids 11 a.m. EDT) $5,000,000

o

Warr.
$550,000^

iGeneral;Investing Corp.)

Electronics

Precon

Co.)

ft

Hirsch ft Co. and

General Precision

.;oo

Micronaire Elec; Med. Prods. Corp.--Com. &

Common

(Tuesday)

&

Putnam

-.^Sl,500,000
Power Co.!

.Vx«'V-J1

■

Meter-Co.,-Inc.—Common

Charles

,f

.

Kidder,

and

Reapath

&

$412,500

75,000 shares

,

'

Giant Food Properties, Inc.—— ————Common

Inc.)

Friedrichs ft Co. and The Ohio Co. )

Laboulsse,

Haupt ft Co.;

•

•

Common
Netherlands

(Offering to stockholders—underwritten by

Common

Jackson &

■

Co.,

and

$10,000,000

The Dominion

and

Herold Radio & Electronics Corp

ife- Co. >

u

W •

;V

(Howard,. Weil,

Co.

Debentures
Staats

Canada

$39,982,000

Co.___
'

,<t

Parker

(William R.

Co

Webber,

Steel

'«•

Properties, IncDebenfures
Parker

(Auchinclo-s.

Co.'of EiniOln)

Tr ist

First

Giant Food

Hausman

ft

July 7

(Thursday)

Co., Inc.)
'

.

City Steel Co., Inc.*'

'

1

$750,000

$330,000

Northrop Corp.

$6,000,000

Inc.

Co.

25

Telephone

Plohn

(Bear, Stearns ft Co.)

330,000 shares

Corp.)

Peabody

(Joseph Mandell & Co., Inc. and Robert L. Ferman &. CO., Inc.)

Gate

Co.)

EDT)

Ripley &

>(Kidder,

Common

Securities

Aerojet-General Corp.

Common

$435,000

Technical Operations, Inc

Equip. Tr. Ctfs.

noon

June
-

$604,935
Co., Inc.^—

Corp.)

Common

&

Securities

Common

(Charles

shares

-Debentures

1-—

■
■
■
t $4,000,000 ;
^
Benson-Lehner Corp,
Common
(Offering to stockholders—undenvrifteii by Bear, Stearns*& Co.i

Common

$900,000

(David Barnes ft Co., Inc.)

Corp.)

(Municipality of Metropolitan)

■

shares

Inc.)

Tape Cable Electronics Co., Inc..

Debentures

(Hirsch <fc Co;; Bache & Co. and Equitable Securities Corp )

,>r

Co.

Tang Industries, Inc._

■J-

..

.

Co

(Dean Witter

Cto.)

1

$237,500

Alsco, Inc.

•

and

Debentures-Common
Co.

ft

Southern Pacific Co.—

.n_..t_.Common

Inc

ft Co.,

>>•'

t-;

$300,000

20,000

Co._

Ryan Aeronautical

Specialties,

(Milton B.

Saltzman)

&

Cement

3,000,000

ft

(Aetna Securities
,

...LCommon

Corp..

(Laird

-

Accurate

v

(Torpie

Oklahoma

.EGommon

Brothers '&' Co.)

S.

Ultrasonics

Co.)

Co., Inc

.

Freres

Kuhn,

143,750 shares

Skaggs Leasing Corp.__

Reheis

-Debentures

.-

Narda

Common

shares

100,000

Montecatini Italy

v,;Vr
(Offering to stockholders—underwritten by Newhard, Cook &
iiiiiCo. and Yates, Heitner ft Woods) $631,084
Plastic Materials & Polymers, Inc.—
Common

ft

(Blair
v

Brothers)

Common

First National Life Insurance Co

Associates, Inc
(Lehman

300,000 shares

(Eastman Dillon, Union Securities & Co. and William R. Staats

$782,757.50

(Wednesday)

inc.) 310,000 shares

ft CoM

Common

Peabody ft Co.)

First Charter Financial Corp

.Common

(Offering to stockholders—no underwriting)

.....Common

$300,000

Federation, Inc.—^
(Kidder,

(George O'Neill ft Co., Inc.) 210,000 shares

'

*

Common

(Charles Plohn & Co.)

23,165" shaves

Co.)

ft

(Monday)

Astronautics Engineering Corp

.Common

(White

——Bonds
EOT) $5,000,000,.

a.m.

Morris

(Lehman

Chicago Burlington & Quincy RR.__ __Eq.Tr. Ctfs.

.

36

page

..Common

September 17

483,332 shares

Debentures

.{Scherek, Richtcr Co. and Semple, Jacobs & Co., Inc.' $1,000,000

Georgia

(Thursday)

Power Co.__
(Bids to be Invited)

Bonds
$18,000,000

„

The Commercial and Financial Chronicle

36

.

.

Thursday, June 18, 1959

.

(2768)
DCA common stockholders
recently consummated merger

received

35
Underwriter—Earl J. Knudson & Co.,

in connection

by

Continued from page

with

take City, Utah.
Salt Lake City, Utah.

Equities. Inc., into DCA and the plan of
consummated in connection therewith.

Connecticut Water Co.
^
Mav 15 filed 38.986 shares of common stock
which 38,004 shares are being offered for

None.

the

of Real Estate

reorganization
Underwriter—

•

(no par), of

subscription
stockholders of record June 3, 1959, at the

fey common

share for each four shares or fractions
thereof then held; rights to expire on June 23. The
remaining 982 shares are being offered for subscrip¬
rate of one

new

employees. Price—$16 per share. Proceeds—to
the company's outstanding bank loans;
finance part of its 1959 construction program, and

tion by
repay

to
for

in part

corporate

other

Underwriter—Putnam &

purposes.

Consolidated Petroleum Industries,

Inc.

April 30 (letter of notification) 80,000 shares of 6% con¬
vertible preferred stock (par $3.50) and 80,000 shares oi
common stock (par 10 cents) to be offered in units of
one share of preferred and one share of common.
(Pre¬
ferred stock may be converted into two shares of com¬
mon stock at any time.)
Price—$3.75 per unit. Proceeds
—For development of gas properties. Office—908 Alamo
National Bank Building, San Antonio, Texas.
Under¬
writer— Frank Lerner Co., New York. N. Y. Offering—

Temporarily suspended by the SEC.

Portland* Me. (6/19)
9,800 shares of common
stock (par $1).
Price—$29.25 per share. Proceeds—To
selling stockholders. Underwriter—H. M. Paysori & Co.,
•4r Consumers Water Co.,

(letter of notification)

June 4

Portland. Me.

Continental Tobacco Co., Inc.

•

(6/22)

(letter of notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price—$1.25 per share. Pro¬
ceeds—For general corporate purposes. Office—607-12th
Avenue, Huntington, W. Va. Underwriter—Best Secu¬
rities, Inc., New York.
April 2

Mining Corp. Ltd.

Cree

April 17 filed 260,000 shares of common stock. Price—
80 cents per share. Proceeds—For exploration program.
Office—2100 Scarth St., Regina, Saskatchewan, Canada.
Underwriter — Cumberland
Securities Ltd., also of

Regina.
Crescendo Oil Co., Inc.

shares of common
stock. Price —At par ($1 per share). Proceeds —For
lease, labor, equipment, etc. Office—309 V2 S. Third St.,
Las Vegas, Nev. Underwriter—None.
Crescent Petroleum Corp., Tulsa, Okla.
May 26 filed 48,460 shares of 5% convertible pfd. stock
<$25 par) and 12,559 shares of common ($1 par), 34,460
Shares of the preferred and 9,059 shares of common are
issuable upon the exercise of stock options granted when
the assets of Norbute Corp. were acquired 011 Aug. 6,
(letter of notification) 300,000

June 1

1958.

Crosby*Teletronics Corp. (6/30)
May 22 filed 250,000 shares of common stock (par 25
cents). Price—$3,3732 per share. Proceeds—For general
corporate purposes. Office—54 Kinkel St., Westbury,
L I., N. Y.
Business—Designing, manufacturing and

development of highly tech¬
specialized electrical and electronic equipment.
Underwriter—Myron A.. Lomasney & Co., New York.

conducting research and
nical and

* Dilbert's Properties, Inc. (7/13-17)
11 filed 84,400.000 of 20-year 532% convertible

June

bentures, due July 15, 1979 and 1,056,000 shares
mon stock (par one cent) to be offered in units

Inc.
1,000 shares of common
ctock (par $50 )to be offered for subscription by stock¬
holders of record April 30, 1959, on the basis of one new
ehare for each two shares held. Rights expire Aug. 25,
1959. Unsubscribed shares will be offered to the public.
(letter of notification)

per

Proceeds—For working capital.
City, Kan. Under¬

Minnesota

share.

Ave., Kansas

writer—None.
Crusader Oil & Gas Corp., Pass Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which
€41,613 shares will be offered on a one-for-one basis to
stockholders of record May 15, 1959.
The remaining
€58,387 shares will be offered publicly by the under¬
writer on a "best efforts" basis. Price—To be supplied
by amendment. Proceeds—For repayment of notes and
for working capital. Underwriter — To be supplied by

ernendment.

Cycon,

:

' ,;

': '

,

'/

1959,

on

the basis of

then held with

one

new

of

common

record

share for each

June

10,

DIT-MCO,

>442,000 ol

>1.

bank

June 3

(letter of notification) 250.000 shares of

stock.

Price —At par

common

share).
Proceeds —For
working capital, inventory, sales program, etc. Office—
2130 South Platte River
Drive, Denver 23, Colo. Under¬
writer—None.
7
per

Development Corp. of America
April 30 filed 1,376,716 shares of common stock (par $1)
reserved for issuance upon conversion of shares of the

company's $1.25 cumulative convertible preferred stock

4

Underwriter—Blair &

61,708 shares of class A
offered to stock¬

Unsubscribed shares will be offered to the pub¬
cap¬

East 2626

of Blue Diamond into Flintkote.

Ave., Spokane, Wash. Underwriter—Pacific InterSecurities, Inc., for any publicly offered shares.

•

Mountain

Flintkote Co.

June

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
contracts. Proceeds—For investment, etc.
Office—2480
16th Street, N. W., Washington, D. C.
Underwriter—

4

filed

holders of Glen Falls.
current market

Exchange.

Co. of Clarinda

pany's books at the end of each 30-day period on a pro
each share

now

held. Un¬

subscribed shares will be offered to the public. Price—
Estimated at $140 per share.

Proceeds—Working capital,
Clarinda, Iowa.. /

etc. Office—106-108 W. Chestnut St.,

Fedders Corp., Long Island, N. Y.

May 12 filed $3,812,300 of sinking fund subordinated de¬
bentures, due May 31, 1979, with warrants to purchase
152,632 shares of common stock being offered for sub¬
scription by common stockholders in units of $100 of
debentures with warrant for the purchase of four shares

stock

(par $5).

or

Price—To be related to

current

Proceeds—To

price

on

selling

the then

the New York Stock

stockholders.

Under¬

writer—None.

Fluorspar Corp. of America
Feb. 5 (letter of notification—as amended) 300,000 shares
common stock.
Price—At par ($1 per share). Pro¬

of

ceeds—For

prepay

Farmers Mutual Telephone

common

exchange for 369,858 shares of Flintkote Co. The 143,789
shares of stock are to be received by certain share¬

• Fabrex Corp.
(6/23)
May 21 filed 300,000 shares of capital stock (par $1), of
which 150,000 shares are to be sold for account of the
company and 150,000 shares for certain selling stockhold¬
ers. Price—To be supplied by amendment. Proceeds—To

May 19 (letter of notification) 1,531 shares of common
stock (par $100) to be offered to stockholders for a pe¬
riod of 60 days at book value as reflected by the com¬

143,789 shares of

This company on June 17 will acquire all the assets of
The Glen Falls Portland Cement Co. (of New York) in

None.

Co., New York.

Co., Inc., New York.

Co., New York
t
May 20 filed 227,368 shares of common stock, of which
173,286 shares are to be offered to certain officers and
key employees of Flintkote and its subsidiaries under
the "Flintkote Stock Option Plan"; 16,771 shares are
subject to options granted by Flintkote in substitution
for options granted by Orangeburg Manufacturing Co.,
Inc., to certain of its officers and key employees; and
37,311 shares are subject to options granted in substitu¬
tion of options granted by Blue Diamond Corp. to certain
of its officer and key employees. Flintkote acquired all
the assets of Orangeburg in December, 1958, in exchange
for 132,416 shares of preferred stock; and on May 14,
1959, it issued 615,617 common shares upon the merger

Tower, Cincinnati, Ohio. Underwriter—None.

Sherman &

(7/6)

Flintkote

Enamo-Bord Products Inc.

Underwriter—L. D.

Insurance Co.

filed

75,000 shares of common stock (par $4).
Price—$12 per share. Proceeds—To increase capital and
surplus. Office—1230 East Camelback, Phoenix, Ariz.

scription by common stockholders of record June 5,
1959, at the rate of $100 of debentures for each eight
rights to expire on
June 30. Price—At par. Proceeds—To repay outstanding
bank loans and for general corporate purposes. Office—

standing bank loan; and the balance will provide work¬

(7/6)

(no par).

First National Life
June

shares of common stock then held;

(6/29-7/3)

(110 par)

3,000,000 outstanding shares of common
Price—To be supplied by amendment.
Proceeds —To selling stockholders.
Office —110 North
Dcheny Drive, Beverly Hills, Calif.
Underwriters —
Eastman Dillon, Union Securities & Co., New York; and
Wilixam R. Staats & Co., Los Angeles, Calif.

Emery Industries, Inc.
filed $6,103,700 of 4%% convertible subordi¬
nated debentures due July 1, 1979, to be offered for sub¬

Inc.

an

interest

filed

11

stock,

May 21

•

(letter of notification)

ic First Charter Financial Corp.

stockholders on the basis of one share of series 3
three shares of series 1 and/or series 2
stock held; unsubscribed shares to other stock¬
holders.
Rights expire 30 days from offering date
Price—$1 per share.
Proceeds—For working capital
Office—333 S. Farish Street, Jackson, Miss. Underwriter

Industries,

Calif. Underwriter—Kidder,

—None.

stock for each

Electronic

selling stockholders. Price—

undetermined number
Proceeds—Ap¬
proximately $100,000 to invest in the commodity mar¬
ket. Address—P. O. Box 67, Boston, Mass. Underwriter

common

outstanding obligations and for general corporate
Business—Textile converting.
Office—115
West 40th St., New York, N. Y. Underwriter—Bache &

Los Angeles,

St.,

of shares of beneficial

by

—

-

,

^ First- Boston Commodity Fund

(letter of notification> 250,000 shares of series a
stock (no par) to be offered for subscription

share. Proceeds—For working

(7/6)

Federations, Inc.

supplied by amendment. Proceeds^-To repay a
loan and for working capital. Office—210 West

June

ital and to obtain new dealerships. Office

,

Peabody & Co., New York.

common

lic. Price—$2.50 per

be

Seventh

Emerite Corp.

be

200,000 shares ol class A common stock.,
($1.50 per share)
Proceeds—For working

and the balance for certain

June 2

to

\
/

A
portion thereof (unspecified; to be supplied by amendment) is to be offered for the account of the company

Philadelphia, Pa. Underwriter—None.

(letter of notification)
stock (par 50 cents)

/

.

.

Industry, Inc.

—

Financial

(letter of notification) 300,000 shares of class A
common stock (par 25 cents). PHce—$1 per share.
Pro¬
ceeds—For inventory, equipment, working capital, etc.
Office—901 S. Lake Street, Farrnington, N. Mex. Under¬
writer—Investment Service Co., Denver, Colo.

Fanon

exchange for Consumew

the debentures in exchange

May 27 filed 300,000 shares of capital stock (par $1).

April 6

•

offer

tfich.

Electric City Supply Co.

Trent

in

to

Office—508 Ainsley Bldg., Miami. Fla. UnderR. F Campeau Co., Penobscot Bldg., Detroit,

apital.

May 22 filed $2,000,000 of partnership interests, to be
offered in units. Price—$10,000 per unit. Proceeds—To
be
used
for various/acquisitions.
Office — Broad &
Chestnut Streets,

For

'rice—At par

To

Drexelbrook Associates

rata basis of one-half share for

■jr Denver Metals & Chemicals Corp.
($1

subordinated

proposes

12% debentures of three subsidiaries
Office—1 South Main Street, Port Chester,'

16 filed

Jec.

vrtter

stock ^par 50
Price—$3 per share. Proceeds—For acquisition
)f undeveloped real estate, for organization or acqutsl
don of consumer finance business, and balance to be
ised for working capital.
Underwriter — Investment/
Service Co., Denver, Colo., on a best efforts basis.

common

company

Underwriter—None.

Y.

Finance

jentsj.

May 14

fhe

1968.

the debentures

>f Federated.

Inc.

DiversifiedInc., Amarillo, Texas
/an. 6 filed 300,000 shares of common

fan. 19

due

lebentures; and $226,000 of

15 filed 30,000 outstanding shares of common
stock,
only about 16,000 shares are to bei offered.
Price—$10.50 per share. Proceeds—To selling stockhold¬
ers.
Off ice—911 Broadway, Kansas City; Mo.
Under¬
writer—Midland Securities Co., Inc., Kansas City, Mo.

10 shares

oversubscription privilege. Rights ex¬
pire on July 17, 1959. Price — At par ($10 per share).
Proceeds—For a construction program. Office—112 W.
Elm St., Sycamore, 111. Underwriter—None.
an




lebentures

April

ing capital to finance increased inventories and accounts
receivable.
Office—-98 Berriman St., Brooklyn, N. Y.

DeKalb-Ogle Telephone Co.
May 27 (letter of notification) 19,822 shares of
stockholders

Federated Corp. ot Delaware •
29 filed $918,000 ol 6% convertible

;

for the outstanding

May 29 filed 150,000 shares of common stock (par 20
cents). Price—$3 per share. Proceeds—To retire an out¬

working capital. Office—Mearns Bldg., 142-148 N.
"Washington Ave., Scranton, Pa. Underwriter—Sano &
Co., New York, N. Y.
V

to

Sts., Carlisle, Pa. Underwriter—Winslow, Cohu & Stetr
son, Inc., New York, N. Y.

New York.

—For

offered

■'

(no par). Price—$3 per share. Proceeds—To ac¬
quire all of the capital stock of Byer's Lumber Co., Inc.
and for working capital. Office—North West & Lincoln

,

purposes.

Inc.

be

V''7v

Co.

>210,000 of the debentures to purchase the capital stock
it Consumers Time Credit, Inc., a New York company;

Co., New York.

to

Federal Equipment

May 22 (letter of notification) 100,000 shares of common
stock

consist¬

March 25 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds

stock

//77

repayment of notes; to develop and construct shopping
centers and a super-market under existing purchase
contracts and for working capital.
Office—93-02 151st
Street, Jamaica, N. Y. Underwriter—S. D. Fuller & Co.,

holders.

Underwriter—None.

Crusader Life Insurance Co.,

Office—640

York.

^ec.

Carew

Crowley's Milk Co., Inc.
26 filed 60,000 outstanding shares of common
atock (par $20). Price— To be supplied by amendment.
Proceeds—To selling stockholders.
Office—145 Conklin

Price—$150

de¬

of com¬

Underwriter—Allen & Co., New

eral corporate purposes.

—

March

June 3

per

June

ties, Inc.

Price—

unit (flat). Proceeds—To be used for the most
part for the purchasing of products by company's distrib¬
utors and dealers; and the balance will be used for gen¬
$100

—None.

Underwriter—None.

•

Ave., Binghamton, N. Y.

11, 1959; rights to expire on June 29.

June

on

ing ol $50 principal amount of debentures and 12 shares
ot common stock. Price—$51.20 per unit. Proceeds—For

Co., Hartford, Conn.
•

^ Dexter Horton Realty Co.
15 filed $977,500 of limited partnership interests.
Price
85,000 per unit. Proceeds — For purchase of the
Dexter Horton Building in Seattle, Wash. Underwriters
—Lifton Securities. Inc., and Hechler-Weintrow Securi¬

shares held

of stock at the rate of one unit, for each 50

,

mining

expenses.

Ave., Portland 6, Ore.

Office—4334

S.

E.

74th

Underwriter—Evergreen Securl-

ties, Inc., 4314 N. E. 96th Ave., Portland, Ore.
Foundation Investment Corp., Atlanta, Ga.
13 filed 231,988 shares of common stock to be of¬

Ian.

fered

for

subscription by stockholders;

unsold portion
Proceeds

be offered publicly. Price—$12.50 per share.
—To repay notes.
Office—515 Candler
o

Bldg., Atlanta,

Ga. Underwriter—None. Statement effective April 2.
Franklin Electric Co., Inc.
May 12 filed 40,000 shares of common stock (no par), of
which 20,000 shares are to be offered for account of
company,

and 20,000 shares for the account of certain

selling stockholders.
ment.

Price—To be supplied by amend¬
Proceeds—To be advanced to a subsidiary for the

of constructing an addition to a building now
being leased from the subsidiary.
Office — 400 East
Spring Street, Bluff ton, Ind. Underwriter—Fulton Reid
& Co., Inc., Cleveland, Ohio.
purpose

Fran-Well, Inc.
-•
•
May 25 (letter of notification)

"

r

300,000 shares

of com¬
per share). Proceeds—For
working capital. Office—100 E. Minner St., Oildale, Calit

mon

stock. Price—At par ($1

Underwriter—None.
Fn-*"-*

w.xtiness. Inc.

(6/22-26)

?

May 8 filed 500,000 shares of class A stock (par 50 cents).

.Volume

189

Number 5856

.

.

The Commercial and

.

Financial Chronicle

(2769)

Price—$1.50

per share. Proceeds—For working capital.
Office—120 East 41st Street, New York. Underwriters—
Joseph Mandell & Co., Inc., New York; and Robert L.

Ferman & Co., Inc.,
Miami, Fla.

Futterman-Dupont Hotel Co.
May 22 filed $1,706,900 of Limited Partnership Interests,

to be offered in units.
Price—$25,000 per unit.
—To repay monies borrowed for the

Proceeds

of closing
acquiring the
Dumont Plaza Hotel in Washington, D. C. Office—580
Fifth Avenue, New York, N. Y. Underwriter—None.
purpose

title

and

paying

incidental

expenses

in

•

Gate City Steel Co.,
Inc., Omaha, Neb. (6/22-26)
May 26 filed $1,250,000 6% sinking fund debentures,
series A, due May 1, 1969, of which
$350,000 will be
offered, on an exchange basis, for a like amount/of 5%

debentures which the company plans to retire. The re¬
maining $900,000 debentures will be offered publicly.
Price—Par. Proceeds—For advances to
company's sub¬
sidiary, Moffett Engineering, Inc.— Underwriter—First
Trust Co. of Lincoln, Neb.
..

.

General Aniline A Film Corp., New York
Jan. 14, 1957 filed 426,988 snarei >t common A

stock

Ku.

common B stock (par fl.
Proceeds—To the Attorney General of the United States

Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos
ion : Corp. ; (jointly),4 Kuhn,
Loeb
&
Co.;
Lehmai
Brothers, and Glore, Forgan A Co. (jointly). Bids—Ha<
been scheduled to be received up to 3:45
p.m. (EDT) oi
May 13 at Room 654, 101 Indiana Ave., N. W., Washing
General

«een

★ Grace

(W. R.)

Equipment Corp.

June 16 filed

in

connection

with

the

common

common

stock

(6/26)

share of new preferred for each 11 shares of com¬
stock held and by holders of $1.60 preference series
the ratio of one new share for each 16 Vz shares of

one

$1.60 preference stock held

June 25; rights to expire
supplied by amendment.
Proceeds
For working capital.
Underwriters ■— The
First Boston Corp., and Tucker,
Anthony & R. L. Day,

July

on

Price

13.

—

To

on

be

—

both of New York.
General

Underwriter—F. L. Putnam & Co., Inc.,
Boston, Mass.

;

Connecticut

Avenue,

Investment

Washington, D. C
Advisory
Service,
Manage¬

Columbus, Ind.
of

stock

(no par—
supplied by
amendment.
Proceeds—To selling stockholders. Under¬
writer—City Securities Corp., Indianapolis, Ind.
stated

value

share).

per

common

Price—To

be

change.
the

on

common

stock

(par $1)

the American Stock Ex¬

Price—Relating to the then current market

American

Stock

Exchange.

Proceeds
Underwriter—None.

stockholders.

Hathaway Industries, Inc.
300,000 outstanding shares of common stock.
shares are part of the 672,990 shares
(53.43%)
■

June 9 filed

These
held

by Seaboard Allied Milling Corp. Seaboard plans
to offer 100,000 shares for sale to the business associates
and

employees of Hathaway Industries at $6 per share.
addition, Seaboard may wish to sell publicly the re¬
maining 200,000 shares, or a portion thereof, on the
American Stock Exchange, or
otherwise, at prices cur¬
In

rent

at

the

time of such sales.
Proceeds—To selling
stockholder, Seaboard Allied Milling Corp. Office—
Hathaway St., Syracuse, N. Y. Underwriter—None.
Hausman

Steel

—

To

on

Co., Toledo, Ohio

(6/25)

selling

General Underwriters Inc.

2 filed 80,000 shares of common stock
(par $5).
Price—To be supplied by amendment. Proceeds—To re¬
tire short term bank
loans, for general corporate

pur¬

poses

and

for

expansion

of

the

company's

business.

Underwriters—Howard,

Weil, Labousse, Friedrichs &
Co., New Orleans, La.; and The Ohio Company, Colum¬
bus, Ohio.
;.3-r_ftr
V';:j"'
.

April 6

(letter of notification) 225,000 shares of com¬
capital stock (par 25 cents).
Of the total, 195,000
shares are to be offered for the account of the
company

Heliogen Products, Inc.
22, 1958 (letter of notification) 28,800 shares of
common stock (par
$1). Price—$5 per share. Proceeds—

and 30,000 shares for a selling stockholder.
Price—$1 per
share. Proceeds—For furniture inventory and
improved

For payment of past due accounts and loans and
general
working capital.
Office—35-10 Astoria Blvd., L. I. C.

merchandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,

3, N. Y.

mon

Inc., Pine Bluff, Ark.
•

General Waterworks

Corp.

March 31 filed 16,131 shares of $5 voting preferred stock
(par $100) and 66,131 shares of 80-cent dividend voting
second

preferred stock (convertible—par $1). The com¬
is offering one share of the 80-cent dividend second
preferred stock for each share of common stock of New

pany

Rochelle Water Co. and
one

share of the

each share of

share of its $5 preferred and
second preferred for
Rochelle $3.50 preferred (including
one

80-cent

New

dividend

accumulated unpaid dividends from November
1950). The
offer is conditioned upon acceptance
by holders of 80%
of New Rochelle stock. Office—3219
Philadelphia

Pike,

Claymont, Del. Statement effective May 12.
•

Giant Food Properties, Inc.
(6/22-23)
May 19 filed $680,000 53/2% sinking fund debentures (GT
series), due Dec. 1, 1971, together with 74,800 shares of
common

stock.

Price—To

be supplied by amendment.
Proceeds—To Richard Borden
Industries, Inc., the sell¬

ing security holder. Underwriters—Auchincloss, Parker
& Redpath, Washington, D.
C.; and Kidder, Peabody &
Co., New York.
Glasco

Corp., Muncie, Ind.
May 25 filed 100,000 shares of common stock (par $1).
Price—$10

per

eral funds

of

share. Proceeds—To be added to the gen¬
company and be used, together with
retained earnings, to maintain its
program of research
and development in the over - all field of commercial
refrigeration and more particularly in that of general
the

vending-machine design; and to reduce or eliminate the
necessity for seasonal short-term bank borrowings. Un¬
derwriter—Smith, Hague & Co., Detroit, Mich.
Government Employees Variable
Annuity Life
insurance Co.
Nov. 13 filed 2,500,000 shares of common stock
(par $1)
to be offered by company viz:
(1) to holders of common
Stock (par $4) of Government
Employees Insurance Co.,
on the basis of one warrant
per share of stock held

(1,now outstanding); (2) to holders of
(par $1.50) of Government Employees
Life Insurance Co., on the basis of 1
Vz warrants per share
of stock held (216,429 shares are now
outstanding); and
(3) to holders of common stock (par $5) of Government

334,570 shares
common

are

stock

Employees Corp., on the basis of Vz warrant per share of
stock held (as of Dec.
31, 1958 there were 143,703 shares
of stock outstanding and
$589,640 of 5% convertible cap¬
ital debentures due
1967, convertible into shares of com¬




Oct.

11

June

Hemisphere Gas & Oil Corp.
April 27 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceeds—
For development oi oil and gas properties.
American Bank Building, Portland
Earle Hensley
Seattle, Wash.

Office—702

5, Ore. Underwriter
Co., Inc., 4444 California Avenue,

Hereon Electronics Corp.
May 21 (letter of notification) 100,000 shares of common
stock (par one cent). Price—$3 per share. Proceeds—To
defray expenses; to pay outstanding notes; to purchase
equipment and to further manufacturing facilities.
Of¬

fice—481 Washington

St., Newark, N. J. Name Change—
Company formerly was known as Hermetic Connector
Corp. Underwriter—Richard Bruce & Co., Inc., 26 Broad¬
way, New York, N. Y.
•

Herold Radio & Electronics Corp.
(6/25)
May 18 filed $1,500,000 of 6% convertible subordinated
debentures due June 15, 1974. Price—100% of principal
amount. Proceeds—To redqee notes
payable, excise taxes,
payroll taxes and other current liabilities. Office—716
South Columbus

Ave., Mount Vernon, N. Y. Underwrit¬

ers—Ira Haupt &

Co., Hirsch & Co. and Amos Treat &
Co., Inc., all of New York.
Hickerson Bros. Truck Co., Inc.
March 11 (letter of notification) 285,000 shares of com¬
mon

stock.

Price—At par

($1 per share). Proceeds—To
pay existing liabilities; for additional equipment; and
for working capital.
Office—East Tenth Street, P. O
Box 68, Great Bend, Kan.
Underwriter—Birkenmayex
& Co., Denver, Colo.
Highway Trailer Industries, Inc.
June

9 filed
1,105.294 shares of common stock to be
offered for subscription by present stockholders at the
rate of one new share for each two shares held. Price—

To

be

for

new

supplied by amendment. Proceeds—To be used
equipment and plant improvement; to be used
for inventory and production requirements of the Hazelton, Pa., plant and the increased production of the
Edgerton, Wis., plant; and for discharge of bank loan

and

New

other

corporate

purposes.

Office—250

Park

Ave.,
York, N. Y. Agents—Allen & Co. and Van Alstyne,

Noel &

Co., both of New York.

•

* Hoffman Laboratories, Inc., Hillside, N. J.
June 12 (letter of "notification) 50,000 shares of common
stock. Price—$6 per
masney
of

this

share. Underwriter—Myron A. Lo¬
& Co., New York. Offering—Expected at the end

month.

"

16

Underwriter—None.

/

-

filed 25,000

shares of common stock, to be of¬
subscription by stockholders of record April
30, 1959, on the basis of one new share for each five
fered

for

shares

then held.
Price—$40 per share. Proceeds—To
applied to repayment of bank loans and for com¬
pany's capital expenditure program and investment*
Office—Honolulu, Hawaii. Underwriter—None.

/

Household Gas Service, Inc., Clinton, N. Y.
May 25 (letter of notification) 5,000 shares of common
stock. Price—At par ($10 per share).
Proceeds—For
repayment of debt; purchase of equipment and for work¬
ing capital. Underwriter—Mohawk Valley Investing Co.,.
Inc., Utica, N. Y.
•

Hudson

Radio

& Television

Corp. (7/13-17)
shares of capital stock, of which
125,000 shares are to be offered for the account of the
company and 75,000 shares for- the account of a selling
stockholder. Price—$5 per share. Proceeds—To be util¬

June

8

filed

200,000

ized

in reduction of obligations, the acquisition and/or
development of additional inventory lines, warehousing
outlets; the adoption of various sales
promotional programs, and as additional working capi¬

facilities and sales

tal.

Office—37

West 65th St., New York, N. Y.

writer—J. A. Winston & Co., Inc.
curities Co., Inc.
•

Under¬
and Netherlands Se¬

Hunter

Mountain Development Corp.,
Hunter, N. Y. (7/15)
5 filed $690,000 of 6%
subordinated debentures
due July 1, 1969, and 69,000 shares of common stock
(par
10 cents) to be offered in units, each unit
consisting of a
$50 debenture and 5 shares of common stock. Price—$50
per unit. Proceeds — For purchase of equipment, for
building of lodge, and for other corporate purposes. Un¬
derwriter—Myron A. Lomasney & Co., New York.
June

• Ideal Precision Meter
Co., Inc. (6/22-26)
May 19 filed 137,500 shares of common stock (par 10
cents). Price—$3.75 per share. Proceeds—For planned
expenditures and working capital, and for payment of
certain indebtedness. Office
126 Greenpoint Avenue*
Brooklyn, N. Y. Underwriter—Charles Plohn & Co., New
—

York.

Imperial Growth Fund, Inc.

Underwriter—Albion Securities Co., Suite 1512,

Broadway, New York 4, N. Y.

—D.

.

be

Washington, D. C. Underwriter—Investment
ment Associates, Inc.,
Washington, D. C.

$3

.

^ Honolulu Construction & Graying Co., Ltd.

America, Inc.

Advisor

•

Bldg., Tulsa, Okla.

250,000 shares of common stock (par 10
Price—At market. Proceeds—For investment.

Investment

Underwriter—Arnold & Crane, New
v "
',>■ ' V
:•
! -

Home-Stake Production Co., Tulsa, Okla.
Nov. 5 filed 116,667 shares of common stock
(par $5).
Price—$6 per share. Proceeds—For working capital aoG
general corporate purposes.
Office — 2202 Philtowor

filed

Office —1825

Orleans, La.

Orleans.

May 22 (letter of notification) 23,000 shares of common
(no par) being offered to stockholders of record
1, 1959 on the basis of one new share for each
eight shares then held with additional subscription rights
subject to allotment.
Rights expire June 19.
Unsub¬
scribed shares will be offered to the public.
Price—$12.50

•

to be sold from time to time

New

the company of

June

Stores

Corp.
May 21 filed 1,884,278 shares of

25, 1959. Price—■
per share. Proceeds—For expansion program, for
working capital and other corporate purposes. Office—

June

4

]

Co. Ltd.

for each 14 shares held of record June

stock

Feb.

(D. H.)

June 5 filed 14,780 shares of capital stock to be offered
to present stockholders on the basis of one new share

Greenwich Gas Co.

cents).

Holmes

•

stock to be issued

acquisition by

Hamilton Cosco, Inc.,
3 filed 50,000 shares

mon

in

Offering—Postponed indefinitely.

Hatco Chemical Co.

Growth Fund of

per

$37.50

126,000 shares of

June

May 26 filed 105,927 shares of cumulative convertible
preference stock ($50 liquidating value) to be offered
for subscription by holders of common stock in the ratio
of

common stock (par $1).
share.
Proceeds—To selling stockholder*
Underwriter—Van Alstyne, Noel & Co., New York*

Price—$10

& Co.

,

General Precision

March 9 filed 250,000 shares of

total of

postponed

Merchandising Corp., Memphis, Tenn.

(par one cent). Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
writer— Union
Securities
Investment
Co., Memphis,
Tenn. Statement effective April 24.
•

Hoffman Motors Corp.

date*
164,733 common shares would be outstanding.
Price—$3 per share. Proceeds—For capital and surplus.
Office—Government Employees Insurance
Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed.
a

share. Proceeds—To pay bank loans and for working
capital. Office-—33 Greenwich Ave., Greenwich, Conn.

par) and 1,537,500 shares of

Feb. 18 filed 250,000 shares of class "A"

were

converted

per

y.

ton 25. D. C..3but bidding has

at $28.0374 per share. If all these debentures
into common stock prior to the record

mon

3?

March 2 filed 600,000 shares of common stock.
Proceeds — For investment.
Office

market.

Price—A*
60

Mar¬

—

—

quette Ave., Minneapolis, Minn. Underwriter
neapolis Associates, Inc., Minneapolis, Minn.

Min¬

Industrial

Leasing Corp.
(letter of notification) $200,000 subordinated
convertible 6% debentures ($1,000 denomination)
and
$50,000 subordinated convertible 6% debentures ($500
denomination). Price—100% of principal amount Pro¬
ceeds—For working capital. Office—522 S. W. 5th Ave.*
Portland 4, Ore. Underwriter—May & Co., Portland, Ore.
June

1

Industrial Minerals Corp., Washington, D. C.
July 24 filed 600,000 shares of common stock (par on*
cent). Price—$1 per share. Proceeds—To develop and!
operate graphite and mica properties in Alabama. U*•erwriters—Dearborn & Co. and Carr-Rigdom & Co*
both of Washington, D. C., on a best efforts basis. State¬
ment effective Nov.
•

18.

Information

Systems, Inc., Skokie, III.
April 21 filed 170,000 shares of common stock being of¬
fered for subscription by common stockholders of Panel-

lit,

Inc.,

at

three
1959
(with a 20-day standby). Price—$3.50 per share. Pro¬
ceeds
To pay notes, for research and development
costs; and working capital. Underwriter—None. State¬
Panellit

rate

common

of one new share for each
shares held of record May 15,

—

ment effective June

8.

Instruments for

Industry, Inc.
May 22 (letter of notification) 100,000 shares of com¬
mon stock (par 25 cents). Price—$3 per share. Proceeds
—For working capital. Office — 101 New South Road*
Hicksville, L. I., N. Y. Underwriter—D. A. Lomasney &
Co., New York, N. Y.
•
International

Bank, Washington, D. C.
$5,000,000 of notes (series B, $500,000, twoyear, 3% per unit; series C, $1,000,000, four-year 4% pa*
unit; and series D, $3,500,000, 6-year, 5% per unit). Prlo*
—100% of principal amount.
Proceeds — For working
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.
Dec. 29 filed

Railroads Weighing Corp.
(letter of notification) 82,626 shares of com¬
mon stock
(par $1) to be offered for subscription bycommon stockholders at rate of one new share for each
four shares held. Price—$3 per share. Proceeds — For
research and development costs and working capital.
.Office—415 Spruce St., Hammond, Ind.
Underwriter—
International

April 16

None.
__

_

Continued

on

page

38

The Commercial and Financial

38

—None.

,

.

.

Thursday, June 18, 1959

construction and
Mass.

New York and Boston.

May 28 filed $25,000,000

K, due 1989. Proceeds—To be used for construction of
utility plant and to pay short-term bank loans made

(letter of notification) 175,000 shares of clasi
stock (par 50 cents).
Price — $1 per share
Proceeds—For equipment and working capital.
Offict
—Pascagoula, Miss. Underwriter—Gates, Carter & Co.
Gulfport, Miss.
April 3

A

common

Co.

shares of common slock. Price—$1
Proceeds—For the acquisition of properties
under option and for various geological^ expenses, test
drilling, purchase of equipment, and other similar pur¬
poses.
Offices—Wilmington, Del., and Emporium, Pa.
Sept. 29 filed 350,000

Ltd.

April 24 filed 225,000 shares of common stock. Price—90
cents per share. Proceeds—To defray the costs of explo¬
ration and development of properties and for the ac¬

M.

share. Proceeds—To be used for the purchase of

Indianapolis, Ind. Underwriter—None.

land Securities Ltd.,

land,
and

(6/29-7/3)

Jefferson Wire & Cable Corp.

.

yqrious .public;;works; projectsf andi for..repayment
borrowings incurred for such purposes^ Undenvriter
—To be ' determined by competitive bidding. Probable
bidders: Lehman Brothers, White, Weld & Co., Eastman
For;

stock, series B, and for general corporate
Office—3600 North Second St., St.Louis, Mo.
Underwriter—Ncwhard, Cook & Co., St. Louis, Mo.
Mansfield Tire &

materials, for plant facilities, for sales promotion,
working capital. Office—Sutton, Mass. Under¬
writers—Charles Plohn & Co. and Netherlands Securi¬

of

Rubber Co.

Dillon; tUnioq, Securities & ,Cb. and Blyth'
-Co'., Inc.
(jointly).; Shields/& Co., Halsey, Stuart & Co. Inc.,
Savard & Hart and Salomon Bros. & Hutzler (jointly).

of 5% convertible subordinated
debentures, due June 1, 1974, being offered for subscrip¬
7 filed $5,038,300

May

and for

by common stockholders of record June 2, 1959;
rights to expire on June 18. Subscription Basis—$100

tion

both of New York.

Jersey Central Power & Light Co. (7/14)
May 21 filed $8,000,000 of first mortgage bonds due July
1, 1989. Proceeds—To be applied to the cost of the com¬
pany's 1959. construction/ program or to reimburse the
company's treasury for expenditures for that purpose.
Underwriters—To be determined by competitive bid¬

principal amount of debentures for each 28 shares of
common.
Proceeds—To pay short-term bank loans, and
to augment working capital.
Office—515 "Newman St.,
Mansfield, Ohio.
Underwriter—A. G. Becker & Co.,
Chicago, 111.

ding. Probable bidders: Halsey, Stuart & Co. Inc.; White,
Weld & Co.; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co.; Salomon Bros. & Hutzler and

Bids—Expectedrio be received on June 30.

mon

stock (par $1).

Pierce, Fenner & Smith, Inc. (jointly).
Bids—Expected to be received up to 11 a.m. (EDT) on

Underwriter—W. W. Schroeder & Co., New York

Kaiser Aluminum & Chemical

Corp.

holders.
•

Underwriter—None.

Kaltman

(letter of notification) $250,000 of 6%' convertible
July 1, 1964, and converti¬
ble into units of common stock which consist of one
share of class A, voting, and three shares of. class B,
non-voting stock at $40 per unit. Proceeds—To purchase
machinery and equipment and for working capital. Ad¬
dress—P. O. Box 755, Norman, Okla.
Underwriter—
subordinated debentures due

(D.) & Co., Inc.

None.

May 13 filed 1,406,141 shares of common stock (par 50
cents) fbeing Offered by Noma Lites, Inc., to the holders
of its 745,184 outstanding common shares at the rate of
1.9 shares of Kaltman
common

June

common

for each share of Noma

held on June 11; rights to expire on
Price—$4 per share.
Proceeds—To selling
Underwriter—Bear, Stearns & Co., New
•

'

Kilroy (W. S.) 1960 Co.
Participating Interests under
Participant Agreements in the company's 1960 Oil and
Gas Exploration Program, to be offered in amounts of
$25,000 or more. Proceeds—Acquisition of undeveloped
oil and gas properties. Office—2306 Bank of the South¬
west Bldg., Houston Texas.
Underwriter—None.
June 8 filed $3,500,000 of

• Land
Equities, Inc., Santa Monica, Calif.
May 12 (letter of notification) 200,000 shares of class A
common stock (par one cent).
Price—$1 per share. Pro¬
ceeds—For general corporate purposes. Underwriter—
Rcss, Lyon .& Co., Inc., New York, N. Y. Offering —
Expected this week

V Laure Exploration Co., Inc., Arnett, Okla.
April 30 filed (by amendment) 2,000,000 shares of com¬
mon stock (par $1).
Price—$2 per share. Proceeds—For
machinery and equipment and exploration purposes.
Underwriter—None.
-

Laymen Life Insurance Co.
May 27 (letter of notification) 60,000 shares of common
stock (par $1) to be offered to stockholders of record
on May 29, 1959 on a share-for-share basis.
Rights ex¬
pire June 30, 1959.- Price—$5 per share. Proceeds—For
working capital. Office—1047 Broadway, Anderson, Ind.
Underwriter—None.

June 11 filed 200.000 shares of common
r

the

basis

stock, to be ofsubscription by holders of outstanding stock on
of

one

share

new

for each share

held

during

the period

ending June 25, 1959. Price—$5 per share to
stockholders; $6 per share to the public. Proceeds—To
increase

rapital

and

surplus.

Boulevard, Shreveport, La.

Office —17^6

Centenary

Underwriter—None.

2,622,000

3,492'°00 shares of

shares

were

issued

common stock, of which
in

exchange

for

all

ol

tte common stock of Desser &

&

Garfield, Inc., and D. G.
R., Inc.; 750,000 shares will be used for the exercise

^by the comPany to purchase from Big

Mound Trail Corp.
remaining

some

120,000 shares




3,784.9
were

acres

sold

of

for

land; and the
the

account

of

Acceptance

Yprk, :N. Y.

Narda

■

Offering expected any day.

Microwave Corp..

>

of common stock (par 10
cents) and .50,000 warrants to be offered-in units, con¬
sisting of one' share: of common * stock with attached
warrant entitling the holder to purchase one additional
share.
The statement also includes an additional 10,000
shares of common; stock reserved for issuance to key
employees pursuant to options. -Price—To be supplied
by amendment, fProceeds — To be used, to retire bank
loans. Underwriter.—Milton D.,BIauner & Co.,.Inc., New
York.\
v"
June

filed

50,000

shares

.

;

Narda

•

(7/13-17)

Corp. of California

16

(6/24)

Corp;

Ultrasonics

-

ApriL29: filed '20,000 shares of common stock

(par 10

'

cents;. Price—To be supplied by amendment. Proceeds—
To retire a $100,000 outstanding bank loan and the bal¬
ance fell be used for general corporate purposes. Office—
*

West|ury, Dong Island," N. Y. Underwriter
Saltzfnan, New York.

—

Torpie &

May 15 (letter of notification) $80,000 of 12-year 5%% 7
National. Citrus Corp.• v->. A :
/, >■
capital debentures. Price—At face amount. Proceeds— I Apri§20-f (letter of notification); 150,000 shares of com¬
For working capital.
Office — 333 Montgomery Street,
mon Istock.j;' Price—At par
($2 per share).
Proceeds—
San Francisco, Calif. Underwriter—Guardian Securities
; For few equipment, inventory and working capital. AdCorp., San Francisco, Calif.
N7A dresftip;/ O/: Box T658, Lakeland, Fla.- Underwriterr—
/ R. Ff.Campeau Co.,- Inc., Detroit, Mich.ir Michigan Seamless Tube Co. (7/1)
./
: v ' r,
June 10 filed 100,000 shares of common'stock (par $5).
:ionaf Life & Casualty Insurance Co.
>
Price—To be supplied by amendment; Proceeds—To be
MarHi 25 ,filed: 250;000 'shares of common capital stock
added to general funds of the' company-and used- in
to bte offered to holders- of certain of- company's life
connection with a program of expansion- of the facilities
insurance policies issued on or prior to Dec. 31, 1955,
of the subsidiary (Gulf States Tube Corp.) scheduled for

completion in September 1960. Underwriter— Paine,
Webber, Jackson & Curtis, New York.
•
;
v
•

Micronaire

June

Electro

Medical

Products

Corp.

one-year

an

(par 10 cents) and
warrants for the purchase of common

additional 200,000 three-year

Nor& Central Ave.*,

war/ants,

exer¬

issued to cer¬
tain stockholders and employees. Price—$275 per unit.
Proceeds—To discharge indebtedness; for expansion of
sales efforts: and for working capital. Office-—79 Madi¬
son Ave., New York.
Underwriter — General Investing
Corp., New York.
'
'
/.'-/

cisable at $3, of which 150,000 have been

ceift$). Price — $1 per share. Proceeds — For workihg
cap ital and investments.
Office—Hartsdale, N. (Y. / Undei writer—None;
»
"/ /
/
.

+ Midwest Oil Corp.
June ,12 filed $550,000 of Participations in the Employee
Plan

of

Midwest

Oil

and

certain

affiliated

cor¬

porations, together with 14,667 shares of capital stock
which may be purchased pursuant to the 'plan;
Office
—5700 Broadway, Denver, Colo.' * •■ * '
/

Price—$1
For additional working capital.

Dec. 23 filed 602,786 shares of common stock.
per

share.

Proceeds

—

Office—Siloam Springs, Ark.

Underwriter—None.

.

Angeles 17, Calif. UnderUer—Waldron & Co., San Francisco 4, Calif. ;
-

fice-—1250 Wilshire Blvd., Los

ledow

Oil Tool Co.

,

v

Miy 5 (letter of notification) 150,000 shares of common
stqck (par 50 cents).* Price—$2 per share. Proceeds—To
ac4hire fishing tools for leasing; and for working capital.
Address—P. O. Box 672, Odessa, Texas. Underwriters—

To[-be designated.

,<

,^|New Pacific Coal & Oils Ltd.
Jufe

11 filed 1,265,000 shares of common stock, of which
1,000.000 shares will be offered for the account of the
company;.!00,000 shares will be offer eds for the account
of

^ selling stockholder (Albert Mining Corp.' Ltd.);

an<k

Millsap Oil & Gas Co.

_

Baylor Engineering & Research Corp.
Se^. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and nonassessable common stock. Price—
At^ijar ($1 per share). Proceeds—For organizational eXpefees and first three months' operational expenses. Of¬

Microwave

Associates, Inc. (6/24)
May 21 filed 100,000 shares of common stock (par $1).
Price—To be supplied by amendment." Proceeds—For
general corporate purposes. Business—Develops and pro¬
duces
components for radar systems. Underwriter—
Lehman Brothers,' New York.
'
*
4

Underwriter—None.

Phoenix, Ariz.

flatidnwide'

Small Business Capital Investing
'Corp. r:'
•••" /•//' 1
Ap: $1 24 filed 500,000 shares of capital stock/ (par 50
;

stock, to be offered for public sale in units of 100 shares
of common stock and 25 warrants. The registration also
includes

and|to certain employees. Price—$4.44 per share. Procee4^4-To,«increase capital and surplus. Office — 2300

>

(6/22-26)
1 filed 200,000 common shares

50,000

Thrift

Lefcourt Realty Corp.

^52*

Mercantile

•

★ Lee National Life Insurance Co.

'

New

May 14 filed 200,000 shares of common stock (par 20
cents). Price—$3.75 per share.
Proceeds—For general
corporate purposes. Office — 42 Broadway, New York,
N. Y. Underwriter—Amos Treat & Co., Inc., New York.

stockholder.
York.

'

Inc.

Medearis Industries,

•

stock

26.

5, N. Y.

June 1

effective June 5.

Statement

'

ring etc. ■/, Off ice—465 Lehigh Avenue, Union, N. J.. Un¬
derwriter—,G- Everett. Parks & Co., Inc., 52 Broadway,

Maturizer Co.

May 11 filed 64,028 shares of 4%% cumulative convert¬
ible (1959 series) preference stock (par $100) and 128,051 shares of common stock (par 33% cents) issued in
exchange for the outstanding stock of Mexico Refrac¬
tories Co. through merger. Proceeds—To selling stock¬

.

,

For payment of outstanding loans and working capital.
Office—Gunn Highway at Henderson Rd., Tampa 7, Fla.

July 14.

v

May .1. (letter; of. hptification) .99,500 :shares of,common
stock (par ■ 10 Scents).
Price—$3 per share.' Proceeds-fTo purchase, building;, for research, development, equiR,ment arid ^.machinery, t etc.;, and for/working capital.
Business—Portable and laboratory instruments for test-

,

24,000 shares of com¬
Price—$12.50 per share. Proceeds-—

Merrill Lynch,

Multi-Amp Electronic Corp.

7"

Mary Carter Paint Co.
(letter of notification)

•

March 30

New York.

Montreal, Canada: ( 6/36)
June 5' filed. $8,100,000 of sinking fund debentures/ for
local imj^rpvements due Jan. 15, 1980 and $11,900,OOQ
of sinking fund debentures for public: works, due Jan. 1^
1980. Price—To bg. supplied by amendment. Proceeds-fr
•

purposes.

raw

ties Co., Inc.,

Kuhn, Loeb «&. Co-.,>all of

Underwriter —Cumber¬

Regina, Saskatchewan. Canada.

tive preferred

May 27 filed 100,000 shares of common stock (no par).
Price—$3.75 per share-, ; Proceeds ,-r- To pay off various
indebtedness, for purchase of machinery, equipment and

supplied by amendment.
chemical

polypropylene and other petrochemicals. Under¬
Lazard F.reres & Co., Lehman Brothers and

static

Chemical Works (7/13-17)
$6,000,000 of convertible subordinated' der
bentures due July 1, 1974. Price—To be supplied by
amendment. Proceeds—To retire outstanding 6% cumula¬

- ••

Price'— To be

writers

Mallinckrodt

•

& Co., New York."

productioh and mining; Proceeds—For construction in
the United States of a plant for the manufacture of iso-

June 8 filed

St.,

For additional

Business—The largest company in Italy in both

Price—60

of capital stock.

—

of issue.

date

"

share.
Proceeds — For exploration, develop¬
acquisitions. Office—5 Cobbold Block, Saska¬

per

Saskatchewan, Canada.

toon,

shares of common stock. Price—$10

-

working capital. Vnderwriter —
'
':/*/'/■'/"/'
Mississippi Power Co. (6/25)
r
May 29 filed $5,000,000 of first mortgage bonds due July
1
1989.
Proceeds—rFor construction program.
Under if:
writer—To be determined by competitive bidding. Prob=±
able bidders: Halsey, Stuart & Co. Inc.; Eastman Dillon,
Union Securities & Co/ and Equitable Securities Corp. *'■'
(jointly); Merrill Lynch, Pierce, Fenndr & Smith; Kid¬
der, Peabody & Co. and White, Weld & Co. (jointly).
Bids—To be' received up to 11 a.m. (EDT) on June 25
at the office of the service company, Southern Services,
Inc., Room 1600, 250 Park Ave., New York 17, N. Y.,^
Montecatini (6/24)
'A
June 2 filed $10,000,000 of sinking fund dollar deben*vlures due Jhiie 15* 1979, and warrants to purchase capital
shares of the company. The debentures will be offered in
units consisting of a debenture in the principal amount
of $1,000 and a<warrant to purchase' a number of capital
shares having a market Value of approximately $500 at

*

Oils Ltd.

May 11 filed 390,000 shares
cents

^ Jamaica Development Co., Inc.

•

& S.

ment and

cattle, machinery and equipment, fishing lodge,
development expense. Office—1841 North Meridian

Statement effective/

Underwriter—None.

quisition of other properties; also for other corporate
purposes.
Office—1950 Broad St., Regina, S.ask., Can
Underwriter — Laird & Rumball, Regina, Sask., Can.

per

share.

per

June 15 filed 105,000

-

LuHoc Mining Corp.

writer—None.
Oil & Exploration,

Barney &
after June

(jointly); W. C. Langley'& Co., and Smith,
(jointly). Bids—Expected to be any time
18 on 72 hours' telegraphic notice.

of New York (7/13-17)
of 10% subordinated debenture
due July 31, 1964, to be offered in units of $1,000. Priet
—At 100% of principal amount. Proceeds—For invest¬
ment. Office—511 Fifth Ave., New York, N. Y. Under¬
Feb. 17 filed $500,000

I ran do

Underwriter—To be determined by

purposes.

competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc. and The First Boston Corp

Investors Funding Corp.

•

such

for

150,000 shares of

Shear son, Ho mm ill

Lighting Co.
of first mortgage bonds series

Long Island

International Tuna Corp.

filed

3

ceeds

June 1 (letter of

shares.
acquisition. Office—60 State St., Boston,
Underwriter—Paine, Webber, Jackson & Curtis,

980,000

ible

Lifetime Pools

50
to
Price—$17.50 per share. Proceeds—For

May 14 filed 2,750,000 shares of common stock (par
cents). The issue was later reduced by amendment

Pasadena, Calif. {6 23) v
10% cumulative convertpreferred stock (par S5>. Price—S10 per share.' Pro¬

Mission Insurance Co.,

l

June

t

A

Equipment Corp., Renovo, Pa. :
notification) 150,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—
For purchase of machinery and equipment; advertising
and working capital.
Uiiderwriter-^First Washington
Corp., Pittsburgh, Pa.

(6/29-7/3)

•International Recreation Corp.

1

.

Underwriter

April, 1959.

selling stockholder during

a

37

Continued from page

.

Chronicle

(2770)

the

remaining, 165,000

will

be

paid as additional

cou^pensation to brokers and dealers./.Price—Related,to
th^ then current market price on the American Stock
Exehange. Proceeds—To repay bank loans, for develop-

Volume

189

ment of

properties, and for general- corporate purposes.

Number 5856

.

.

The Commercial and Financial Chronicle

.

Office—145 Yonge Street, Toronto, Canada;
None.

-general corporate purposes.
'& Co., Spartanburg, S. C.;

Underwriters—A. M. Law
and Clark, Landstreet &
'Kirkpatrick, Inc., Nashville, Tenn.;

Underwriter

,:■/',//

/

.v>

-

Mew York Shipbuilding Corp./v.
March 20 filed 83,334 shares of common

(2771)

& Co. and Netherlands Securities

Paddock

stock; to be

March

of

filed

30

Pressed Metals of America, Inc.
April 17 filed 90,000 outstanding shares of

California

51,847

outstanding

shares

of

Price

common

stock

one share of New York Shipbuilding com¬
for each 24 shares of Higgins, commcm The offer
will expire on June 30. Statemertt ^ffectivfe'April 16.
;

mon,

To

,

stockholder

Pennsylvania Electric Co. (8/4)
15 filed $15,000,000 of first mortgage bonds due
- Proceeds
— Will be applied
to repayment

;stock vtdf

/shdrfc^

expenditures.

-

for

of

Fenner

&

4y; 19

.;up

subscription

one

.

new

stockholders

comrrion

by

share

March

Smithy-Vln^^^ids-^Expecied,4olC>fee .■ received

a.m.

■

<.★ Northrop Corp.

-yj£v>:

(7/7)

($19

June .15 filed $10,000,000 of convertible subordinated de¬

>

due«.July 1, i979.Price

per

Office—332 Atando

V

v-v

V-

Northwest

;y

Defense

*

S.

New

•

•

York.

::VVV!'-'i -Ji/Vet-VrV-V''

Minerals,

Inc.,

Keystone,

;±£

Sept. 4 (letter of notification) 100,000 shares of commoi
stock (par $1). Price — $3 per share. Proceeds — Foi
working capital.
Office—11 Flamingo Plaza, Hialeah
Fla/

Underwriter

.

—

FlaV^vJ^'VV'V^VVV

offered in units

for

of nine class A

Price—$100

investment

per

unit.

estate. Office—9 Clinton St.,
' ""
.

•

•

i

'-/'
-.

...

///V*".'
'i \
11...

.

•

Price-—To

Oil, Gas & Minerals, Inc. -V'F
j"April 2 filed 260,000 shares of common stock (par 35
cents.
Price—$2 per share. * Proceeds—To retire bank
-

Office—513 Interna¬
Mart, New Orleans, La. Underwriter —
Assets Investment Co., IncV New Orleans, La.
'
/

.

Trade

;.(6/24) ;V;

.

/

Brothers

and

bank

the basis of

,

' V;

one new

new

one

loans.

,

Under-,

•

Paco

May 11
ferred
of five

Products, Inc., Pacolet, A. C..
(letter of notification). 2,000 shares :of 7%

stock

to

shares

be

offered

first

.

to'Stockholders

one

share

amount

($50

per

on

of

share).

then

to

;




N.

J.

Underwriter—

Financial

Corp.

$1,000,000 of 15-year 6% series A sinking

of $500 and $1,000. Price—At

par. Proceeds—For work¬
ing capital and general corporate purposes. Underwrite#
—Rassco Israel Corp., New York, on a "best efforta"

Statement effective

Kennedy's stock.

Business

—

and coloring

&

Corp.

one

new

Price—To

Underwriter—

Reeves Soundcraft Corp., Danbury, Conn.
April 30 filed 22,000 shares of common stock (par five
cents) to be sold to Lewis Cowan Merrill upon exercise
of option. Price—$3 per share. Proceeds—To Hazard E,
Reevos, the selling stockholder. Underwriter—None. No
public offering is planned.
/

Primarily engaged

•

Co.r Inc. (7/6-10)
87,000 outstanding shares of class A stock,
price—$5 per share.
Proceeds—To selling stockholders.
Business—Manufactures and sells fine chemicals in bulk

(7/7)

ties Corp., New

Feb.

,

;

par
'

24 filed 200,000

N. J.

Statement expected to

Fund of America, Inc.

shares of capital stock.

Price—Ai

Office—Englewooo,
Underwriter—First Mutual Securities of America,

market.

Proceeds—For investment

Inc.

become effective July 7.

*

York.

Research Investing

for construction expen¬
for other corporate purposes. Underwriter—

• Precon Electronics Corp.
(6/22-26)
April 6 filed 175,000 shares of common stock (par 75
cents)'. Price — $5 per share. Proceeds — For working
capital; to reimburse the predecessor for certain development expenses; for inventories and work in process;
and other general corporate purposes.
Office—120 E.
41st St., New York, N. Y. Underwriters—Charles Plohn

5 filed

primarily to ethical pharmaceutical manufacturers, and.
cosmetic manufacturers.
Underwriters—Aetna Securi¬

(par $5) to
outstanding

share for each five shares

Hartford, Conn.

Reheis

June

outstanding bank loans,
,

Proceeds—To repay in full

and the balance will be added to the

7; rights to expire on or about July 27.
be
supplied by amendment.
Proceeds—To

Pptnam & Co

(7/16)

offering. Price—To be supplied by amend¬
long-term bank loans,
general funds of the
company and will be available to meet increased cash
requirements resulting from increased investment in in¬
ventories and for additions and improvements to prop¬
erties and facilities.
Underwriters—Emanuel, Deetjen
& Co. and Bache & Co., both of New York.
ment.

of

Cable

Corp.

at the time of

July

ditures and

rate

for

on

repay

pre¬

public. Price—At
Proceeds—To-pay bank loans and

Plastic Wire

held

for £ach

notes and

Rumson,

15 filed $5,000,000 of 15-year sinking fund
de¬
bentures, due July 15, 1974, with attached warrants to
purchase additional shares of common stock, to be of¬
fered in units consisting of a $1,000 temporary debenture
with attached warrants in an amount to be determined

-/■■'

stock at the rate of

1,000:shares held; unsubscribed
shares first to holders of 7%: short-term/notes in ratio

of

Circle,

June

Inc. (6/19)
May 11 filed 143,750 shares of common stock (par 10
cents). • Price — $4 per share.
Proceeds — For con¬
struction
of a
plant in Rhode Island and for gen¬

•

;

at

Mines, Ltd.

;Ar Reading Tube

April 21 filed 69,210 shares of common stock, to be of¬
fered in exchange for common stock of Kennedy's, Inc.,
in the ratio of IV2 shares of Phillips-Van Heusen stock

June 5 filed 40,000 shares of common stock
be offered for subscription by holders of

Common, class B common (not including class B shares
held by voting trustees),.or voting trust certificates for

;

(par $1).

Raytheon Manufacturing Co.
May 1 filed 350,602 shares of common stock (par $5) and
100,000 shares of 5Va% series (cumulative), serial pre¬
ferred stock (par $50). These shares were or may be
issued as a result of the merger, of Machlett Labora¬
tories, Inc., into Raytheon Co. (formerly Raytheon Man¬
ufacturing Co.).

thermoplastic^ raw
materials, and the sale of the resultant product. Office—
Hicksville, Long Island, N. Y. Underwriter—Filor, Bullard & Smith, New York City.

share

Price—$4.75 per share; • Proceeds'—For
purchase of additional flight equipment.
Address—P. O.
Box 6007, Lambert Field, St.
Louis; Mo. Underwriters—
Nevvhard, Cook & Co. and Yates, Heitner & Woods, both
of St. Louis, Mo.

stock

fund debentures due 1973, to be offered in denominationa

share for each two shares held.

eral corporate purposes.

common.

v
common

basis.

in the compounding

of general -common stock for each nine shares of class A

class B

Wilson

June 26 filed

"Plastic Materials & Polymers,

,

on

100,000 shares of

Jan. 28 (letter of notification) 290,000 shares of common

Arnold,

None.

(6/19) '
May 20 filed 132,944 shares of general common stock
(par $1) to be-offered to holders of class A and class B
common stock
(not including class B common'held by
voting trustees) and holders of voting, trust certificates

stock,

filed

1

Sano & Co., New York, N. Y.

Glore, Forgan & Co.,

Reynolds Airport, Winston-Salem, N. C.

.

cents). Price—$3 per share. Proceeds— For repayment
of outstanding obligations and for
working capital. Un¬
derwriter—Investment Bankers of America,
Inc.; Wash¬

common

Radinsky Investment Co.

stock (par $1). Price—$1 per share. Proceeds—To prove
up ore and for road and camp construction. Office—At
Suite 322, 200 Bay St., Toronto, Ont., Canada, and c/o T.

'

Corp.,, Wilmington^Del. V ,;.S "
U>Oreclone Concentrating Corp., Virginia, Minn.
-jMay 20 filed 200,000 shares of common stock (par 10

for class B

Underwriter—None.

Radar

Raindor Gold
t

be

May 27.

—Laird & Co.

4..--:Ozark Air Lines, Inc.

(par 10

Colo.

Piedmont Aviation, Inc.
cents) to be offered in units each consisting of $100 of / May 6 (letter of notification) 81,714 shares of common
debentures and 10 shares of common. !stock. Price—To ■j
stock (par $1) being offered to stockholders at the rate
^be supplied by amendment. Proceeds — For expansion,
of 1/14 of a share for each share held as of May 22, 1959.
general corporate purposes, and the balance for working
Rights to expire on June 30, 1959. Price — $3.50 per
capital. Office—Beacon Bldg., Tulsa, Okla. Underwriter
share. Proceeds—For working capital. Address—Smith

.V V-..'/;V

500,000 shares of capital stock

share
Price
—$2 per share. Proceeds—For working capital. Office—
2000 W. Colfax Ave., Denver, Colo.
Underwriters —
Amos C. Sudler & Co., and Purvis & Co., both of Denver*

supplied by amendment. Proceeds—For
working capital. Office—Soriano Building, Plaza Cer¬
vantes, Manila (P. I.). Underwriter—None.

for

•[[

May 21 filed $3,600,000 of subordinated debentures due
June 1, 1974, and 360,000 shares of common .stock (par 23

ington, D..C.

For

The warrants will entitle the holder to acquire one
of common for each five shares of stock acquired.;

Phillips-Van Heusen Corp.

loans and for investment purposes.

.Oklahoma Cement Co.

Lehman

at the rate of

.:'
■

tional

stock
stock

Philippine Oil Development Co., Inc.
April 10 filed 221,883,614 shares of capital stock, to be
offered for subscription by holders of outstanding stock

'
a

—

filed

30

Rassco

reduce short-term

—

'

Newark', N. J.'Underwriter

-

common

both of New York.

class B

one

syndicates and other real

-

>

.

,

writers

Proceeds—To be available

in real estate

—None.

shares and

common

—

To

Proceeds

purchase warrant for each five shares of stock acquired.

V June 2 filed

—

share

Each purchaser of stock is entitled to receive one stock

•>■.',/

Proceeds

per

Proceeds—To acquire a 1061 apartment develop¬
known
as
Queenstown Apartments
in Prince

June

-<:/a

Fla-

Office Buildings of America, ;lnc. • '• t>
* * ■■ ? •':
;
April 6 filed 91,809 shares of class A stock (par $1) and
10,201 shares of class B common stock (par $1) to be
share.

•

Ave., Charlotte, N. C.

Philip Morris Inc. (6/23-24)
$40,000,000 of 20-year sinking fund debenTo be supplied by amendment.
r>/ tures due 1979. Price

Henry :& Associates, Inc.. Vl 1

mingo Plaza. HialeaB,

'

/.York.

$1.50

—

—

Philadelphia Electric Co.
May 7 filed 640,306 shares of common stock (no par)
being offered for "subscription by common stockholders
of record Jurfe 2, 1959, on the basis of one new share
for each 20 shares then held; rights will expire on June
23. Price—$45.50 per share. Proceeds — To repay bank
loans
and
for
construction
program.
Underwriters—
Drexel & Co; and Morgan Stanley & Co., both of New

;

,

Design Corp., Syracuse, N. Y. (6/29-7/3);
May 26 filed 120,000 shares of common stock ($1? par).
Price—$3 per share. Proceeds
To liquidate notes and
mortgages, and for new equipment and working capital.
Underwriter—Charles Plohn & Co., New York.

:(par 10 oents). This covers the transfer of certain shares
/ pursuant to option agreements. Price — At over-thecounter market prices. Underwriter—None.

Dak.

May 4 (letter; of notif ication) 300,000 shares of common
stock (par 10 cents)../ Price—$1. per
shqre. proceeds—
For,-exploring and recovering, strategic,; mefals, and pro¬
ducing same/ Underwriterr-Caldwell Go.,[-26' Broadway,New- York, N. Y. Offering—Expected 'in July,
:
-V:\ Oak Ridge, Inc.

•

To,

Co.; Los Angeles,- .'Calif.;' and Bly

Price

Georges County, Md.

share).-Proceeds—For accounts receivable and

Inventories.

/

=

Sc

unit.
ment

by stockholders on
rata basis. Rights expire in 15 days. Price—At par

be"- supplied by / Underwriter—None.
amendment.
Proceed^Fo^working>Gapita(•;,and, other
'/ Permachem Corp., New York
corporate, purposes.. Office/- 9744 Y!{i|shir,e Bpulevard, /■ March 31 filed
2,041,331 shares of class A
•Beverly Hills, Calif.- UndemTiters—Williajin R-i Staats, ■ •(par 10
cents) and 1,917 shares of class B
bentures

& Casualty Co.
working capital.

Queenstown Gardens, Inc.

stock to be offered for subscription
/ a pro

Fire

•

June 5 filed 140 units, each unit consisting of 700 shares
of class B non-voting common stock.
Price—$5,000 per

Feb. 26 (letter of notification) 28,250 shares of common

(CDT}^pn - July- 22 at^231~§p; LaSalle St.,

•

Broadway, Lawrence, Mass. Underwriter—Dunne & Co.,
New York.
' '
'-/■ v '''•'///• /5

'

Chicago

Producers

Proceeds—For
•

Price—$1.25 per share. Proceeds—For working
capital and general corporate purposes. Office—2 South

shares

15

each

for

of

cents.

Under¬

writer—To be determined by competitive bidding. Probon the
able bidders: Halsey, Stuart & Co. Inc.; Equitable Secu¬
held; rights
rities Corp.; Kidder, Peabody & Co.; Eastman Dillon,
to expire on Aug. 11, 1959.
Proceeds—For construction ;
Union Securities & Co., Merrill Lynch,
Pierce, Fenner &
program expenditures; including, the payment of any
Smith, Inc. and White, Weld & Co. (jointly); The First
then
existing bank loans "'(estimated Vat :'.;$14,000,000).
Boston Corp.; Harriman Ripley & Co. Inc. and Blyth &
Underwriter—To be determined by- Competiti ve'bidding.
Co.; Inc. (jointly). Bids—Expected to be received up to
Probable bidders: Lehman Brothers-'and|-Riter & Co.
11 a.m.V(EDT) on Aug. 4 at the offices of General Public
(jointly}; The First Boston Corp;;'Blyth & Co., Inc., and
KuhnV' Loeb & Co. c(.i.ointly>-;->,White, WeJ.d:
Co. and -t Utilities Corp., 67 Broad St., New York 4, N. Y.
Glore,';.Forgan; & .;.Cp..>( jointly.) ;rMerrilF L^ch,; Pierce, // Perfecting Service Co. Z\
./ .r. ;
fered

basis

stock.
the

on

John C. Kahn Co., Washington, D. C.
e Puritan Chemical
Corp. (6/22)

/of short-term bank loans incurred for construction pur¬

construction

price

general expansion and working capital.
Office—1108
16th Street, N.W., Washington 6, D. C. Underwriter-

June

959

common

market

Prudential Enterprises, Inc.
Jan. 15 (letter of notification) 200,000 shares of common
stock (par one cent) of which 170,000 shares are to be 1
sold by the company and 30,000 shares by a selling

23.•/>:.J*•//; Aug. 1, 1989.

and for

brokers

per share.
Underwriter—None.

-

poses,

and

Price—$5

$20,000,000. of; - first, .mortgage bonds due V/f Peckman Plan Fund, Inc., Pasadena, Calif.
Proceeds—Toy retire bank loans, and for : May 19 filed 20,000 shares of common stock (par $1)
V Price—At market.
Proceeds—For investment.
Underconstruction. expcnditures.sUnderwriter—Ta be deter- •
mined by 'competitive.' bidding.* Probable bidders: Halsey,*' / writer—Investors Investments Corp., Pasadena, Calif.

■

current

issued by Dependable Life Insurance Co. and to certain

agents

..

Junb ."Q .;f iled; 952;033:

the

rights acquired in connection with life insurance policies

.

''•' NorthernStatesPowerXe.(7/22)

to

March

,

Stuart & Co. Inc.; The First Boston-Corp.; Glore, Forgan '
& Co.; Blyth & Co. Inc/; Bids—To be received up to

Related

Producers Fire & Casualty Co., Mesa, Ariz.
31 filed 400,000 shares of common stock to be
offered for subscription by holders of stock purchase

selling stockholders, The Refinite Corp. Office—8400

Sarita Monica Boulevard, Los Angeles, Calif. Underwrit¬
North American Acceptance Corp.
*• *;
V "
April 29 (letter of notification) $300,000 .of 6% 10-year 5 er—None. Statement effective May 15.
/
subordinated debentures to be offered for subscription ;
/Paramount Mutual Fund, Inc.
by .stockholders in denominations of $100, $500 / and
Jan; 2 filed 300,000 shares of capital stock. Price—Mini¬
$1,000 each. Rights will expire July 31,1959. Price—At
mum purchase of shares is $2,500.
Proceeds—For invest¬
par.
Proceeds—For working capital. Office—Suite 487,
ment. Office—404 North Roxbury Drive, Beverly Hills,
795 Peachtree Street, N. E., Atlanta, Ga. Underwriter—
Calif.
Underwriter—Paramount Mutual Fund Manage¬
Ncne.
::/■
/.//;•/
v/V.cv::' .*./•'//://'.
ment Co. Statement effective April 14.
Northern Illinois Gas Co./(6/23).=;%
'

May 27 filed
June 1, 1984.

—

American Stock Exchange. Proceeds—To selling stock¬
holders; Office—Port Huron, Mich. Underwriter—None.

(par $1) being offered "only to stockholders and
/directors of The Refinite Corp. and will not be offered
/to the general public." Price—$3 per share. Proceeds—

at the rate of

*(CDT)■■ on.. June

Co., Inc., both of New

York, N. Y.

f

offered in exchange for common stock of Higgins, Inc.,

:10 g.m.-

39

•
.

Richwell

Petroleum Ltd., Alberta,

Canada

26, 1958 filed 1,998,716 shares of common stock
(par $1). Of this stock, 1,174,716 shares are to be sold
on
behalf of the company and 824,000 shares for the

June

account

proposes

of

certain

stockholders. The company
1,174,716 shares for subscription,

selling

to offer the

Continued

on

page

4$

vContinued from page
by its shareholders at
each three shares held

inventories; and lor the acquisition of new production
machinery and tools. Office — 14930 South San Pedro
Blvd., Compton, Calif. Underwriter—Williaftn R. Staats
& Co., Los Angeles, Calif.

39

the rate of one new share for
(with an oversubscription privi¬

period will be for 30 days fol¬
lowing issuance of subscription rights. Price—To be
supplied by amendment. Proceeds—To pay off demand
note, to pav other indebtedness, and the balance if any
will be added to working

capital. Underwriter—Pacific
Canada.

Securities Ltd., Vancouver,

Roosevelt-Consolidated Building: Associates

1.

Statement effective June

Corp., Salem, Va.

Trading Co. < •
May 27 Royal Dutch filed 794,203 shares (nominal par
value of 20 Netherlands Guilders each), and Shell Trans¬

port filed 1,191,304 ordinary shares (£ nominal value).
According to the prospectus, an offer has been made
by Royal Dutch and Shell Transport to Canadian Eagle
Oil Company Limited, for the whole of its assets and
business. Pursuant to the offer, there would be allotted
to Canadian Eagle, for distribution in kind to its share¬
holders, 3,971,012 fully paid shares of

5,956,518 fully paid ordinary shares of

Royal Dutch and
Shell Transport.

Maatschappij, N.V., a company of
the Royal Dutch/Shell group of companies, which owns
"-■about 21% of the issued share capital of Canadian Eagle,
will waive its right to participate in such distribution.
Canadian Eagle shareholders owning the remaining 23,826,072 ordinary shares of Canadian Eagle will there¬
fore rqeeive two Royal Dutch shares and three Shell
Transport ordinary shares in respect of every 12 shares
of Canadian Eagle held. The offer is to be voted upon
by Canadian Eagle shareholders at a meeting to be held
July 21, 1959. After the shares of Royal Dutch and Shell
Transport have been distributed to Canadian Eagle
shareholders, Canadian Eagle is to be dissolved.
Bataafse

Petroleum

Ryan Aeronautical Co., San Diego,

Calif. (6/24)
stock (no par),

May 26 filed 330,000 shares of common
of which 275,000 shares will be offered on behalf of the
company and 55,000 for selling stockholders.. Price—To
be supplied by amendment. Proceeds—Amount accruing
to the company will be added to working capital. Under¬
writer—Dean Witter & Co., San Francisco, Calif., and
New York City.
•

Schjeldahl

(G. T.)

Co.

*

March 23 filed 42,500 shares

(par $1)
being offered first to present stockholders at the rate
of one new fchare for each eight shares held as of June
10, 1059; rights to expire on June 30.
Price—$10 per
ehare. Proceeds—For increased plant facilities, for pur¬
chase of equipment, working capital and other corporate
purposes.
Office—202 South Division St., Northfield,
M/nn. Underwriter
Craig-Hallum, Inc., Minneapolis,
of common stock

—

Minn.
Securities Acceptance Corp.
May 25 (letter of notification) 10,000 shares of 5% cumu¬
lative preferred stock (par $25). Price—$25.50 per share.
Proceeds—For working capital. Office—304 S. 18th St.,
Omaha, Neb. Underwriters—First Trust Co. of Lincoln,
Lincoln, Neb.; Wachob-Bender Corp., Omaha, Neb., and
•Cruttenden, Podesta & Co., Chicago, 111.
4,

Service Life Insurance Co.

Shares in American Industry,

Inc.

Dee. 12 filed 50,000 shares of common stock.

Proceeds—For investment.

Office

Price—At

—

1033-30tb

I3t., N. W., Washington 7, D. C. Investment Advisor—In¬
vestment
Fund
Management Corp. Former
Name—
Shares in America, Inc.
Sheridan-Belmont

Hotel

and

curred

to
of

a

in connection with the in¬
line of office dictating equipment;

incurred

be

new

payment of installment notes with interest; payment

of a

indebtedness; payment and interest on notes pay¬
able; and for general corporate purposes. Office—8 Middletown Avenue, North Haven, Conn.
Underwriter—
bank

Spiegel, Inc.
May 8 filed $15,417,500 of convertible subordinated de¬

Co.

1, 1984, being offered for subscription

bentures due June

by

stockholders of record June 5, 1959, on the
$100 principal amount of debentures for each

common

basis

of

held; rights to expire on June 22. Proceeds—
of the company to be
available principally to finance its increasing accounts
receivable.
Underwriter;—Wertheim & Co., New York.
12 shares

To be added to the general funds

Arenas (Delaware)
Inc.
$2,000,000 of 6% 10-year convertible de¬
(subordinated), due Jan. 1, 1969 Price—To be
mpplied by amendment. Proceeds—$750,000 to pay AMF
Pinspollers, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000
to
expand two present establishments by increasing
the number of alley beds by eight at Yorktown Heights
md by six at Wilton Manor Lanes, Fort Lauderdale;
1300,000 for deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. Underwriter—
Sports

Nov.

18 filed

None.

Sports

(Delaware)

Arenas

Inc.

Nov. 18 filed 461,950 shares of common

None.

k Stuart Hall Co., Kansas City, Mo. (6/23)
(letter of notification) 23,169 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—For general corporate purnoscs. Underwriter
—White & Co., St. Louis, Mo.
June 8

Suffolk Gas Corp.
May 8 (letter of notification) 6,000 shares of common
stock (par $2.50) to be offered for subscription by stock¬
holders; unsubscribed shares to public. Price—To stock¬
holders, $6.75 per share. Office—151 N. Main Street,
Suffolk, Va. Underwriter—Strader & Co., Inc., Lynch¬
burg, Va./

Sunray Mid-Continent Oil Co.
May 19 filed 525,000 shares of common stock to be of¬
fered in exchange for common stock of Suntide

Co. in the ratio

of

one

Refining

share of Sunray for each three

The offer is conditional upon the de¬

shares of Suntide.

posit of sufficient shares of Suntide so that Sunray wiL
own
at least 90% of the outstanding Suntide shares.
Underwriter—None.

Super-Sol Ltd.

shares of common stock. Price—
pounds—equivalent to $11 per
share in U. S. funds), payable up to 90% in State of
tsrael Independence Issue and Development Issue Bonds,

March 25 filed 250,000
At par (19,800 Israeli

and the balance in cash.

Office

—

79

Proceeds—For expansion pro¬

Ben Yehuda

St., Tel Aviv, Israel.

Fla.

Underwriter—Cruttenden, Podesta & Co., Chicago

Taft Broadcasting Co. (7/1-10)
5 filed 483,332 shares of common stock (par $1).
Price — To be supplied
by amendment. Proceeds —
To selling

New York.

of

the

common

are

stock

and 1,350,000-shares for
•account of selling stockholders: Price—To be supplied
by amendment. Proceeds—For working capital/Office—
company,

Central Ave. and Mechanic St.,

Silver Creek, N. Y. Un¬
derwriter—Maltz, Greenwald & Co., New York.
•

Sip'n Snack Shoppes,

Inc., Philadelphia, Pa.

March 31 filed 200,000 shares of comomn stock

(par 10
■cents). Price—$2 per share. Proceeds—To pay loans and
for new equipment.
Underwriter—Sano & Co., New
York.

•

<•'

~k Skaggs Leasing Corp. (6/19)
June 4 (letter of notification)
240,000 shares of common
fetock (par $1).
Price—$1.25 per share. Proceeds—For

general corporate purposes. Office—307 % W. 19th Street
Cheyenne, Wyo. Underwriter—Harrison
Co., Salt Lake City, Utah.
Smith

(H. C.)

S.

Brothers

stockholders. Office—800 Broadway, Cincin¬
Underwriter—Harriman Ripley & Co. Inc.,

&

(6/22)
May 20 filed 100,000 shares of capital stock (no par).
fi»rice
To be supplied by amendment. Proceeds
For
research and development of new products; to increase
—

—

Technology, Inc.

'
.

y

May 15 filed 325,000 shares of common stock (par 10
cents).
Price—$4 per share.
Proceeds—To pay off in
full the
subscription of Microwave Electronic Tube

Co., Inc. stock, represented by notes, to/pay for im¬
provements upon the plant leased to Microwave, and
for working capital.
Office—1500 Massachusetts Ave¬
nue, N. W., Washington, D.VC.
Underwriter — E. L.
Wolf Associates, Inc., Washington/ District of Columbia.
•

(6/22-26)

Magnetics, Inc.

Telemeter

filed 150,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—To be applied to the reduction of short-term bank
loans incurred fpr working capital purposes as a con¬
sequence of the1 expanding business of the company.
May 26

engaged principally in de¬

Business—The company is

sign, development, manufacture and sale of digital data
handling equipment and components for the computer
and data processing industry.
Underwriters—Lehman
Brothers; Ilallgarten & Co. and Hemphill, Noyes & Co.,
York.

of New

all

k Templeton, Damroth Corp., New York (6/22)
June 5 (letter of notification) 30,000 shares of common
stock (par 10 cents). Price—$4.50 per share. Proceeds
—For investment in various companies.
Underwriter—
Hecker & Co.,

Tang Industries, Inc. (7/6-10)
May 25 filed 110,000 shares of common stock

(par 10

Price—$3 per share. Proceeds—To purchase ma¬
chinery and equipment; for research and development;
for certain expenses and for working capital.
Office—
49 Jones Road, Waltham, Mass!
Underwriter — David
Barnes & Co., Inc., New York.
cents.

•

Tape Cable Electronics Co., Inc. (7/6-10)
June 8 filed 110,000 shares of common stock (par one
cent). Price—$3.75 per share. Proceeds—For the pur¬
chase
and
construction
of necessary machinery and
equipment, the promotion and sale of Tape Cable, and
capital. Office—790 Linden Ave., Rochester,
N. Y. Underwriters—Charles Plbhn & Co. and Nether¬

for working

lands Securities Co., Inc.,

both of New York.

k Teagen Co.
15 filed $630,000 of limited partnership interests.
Price—$10,000 per partnership interest. Proceeds — For
purchase of a long term lease covering a garden type
apartment located in the Borough of Bergenfield, County
of

Philadelphia, Pa.

Inc., Providence, R. I.
April 28 filed 973,000 shares of capital stock (par $1).
Price—$5.40 per share. Proceeds—For investment. Office
—512 Hospital Trust Bldg., Providence, R. I. Distributor
—E. R. Davenport & Co., Providence, R. I.:„
Ten Keys,

Tower

Terminal

Co.y

(6/29)

Cleveland, Ohio

May 29 filed $3,300,000 of 6% sinking fund debentures
due July 1, 1969, with common stock purchase warrants
for the purchase of the company's common stock at the
price of $30 per shares and at the rate of 10 shares for.
each $1,000 of debentures. Price — 100% of principal
amount.
Proceeds — For acquisition of the Terminal

Building, Cleveland, Ohio;

Tower

Reid &
•

Co., Cleveland, Ohio.

-

Underwriter—Fulton
*

-

Petroleum Corp.

Texfel

shares of common stock (par $1).
supplied by amendment. Proceeds—For

March 19 filed 550,000

Price—To

be

repayment of the company's 5% notes held by an Amer- «
lean bank, and the balance will be added to its general
funds and will be used in connection with its. various
operations, and for general corporate purposes, includ¬
ing payment of purchase obligations on certain prop¬
erties, and for the purchase of Warehouse inventories.
Office—Republic National Bank Bldg., Dallas, r Texas.
Underwriters—Bache &. Co. and Allen & Co., both of
New York. Statement has been withdrawn. "
v * •'/
•

(6/22-26)

Tip Top Products Co.

May 29 filed $850,000 of 6% first mortgage sinking fund
bonds, series A (with warrants for 17,000 shares of class
A common stock), and 100,000 shares of class A common
stock. Price — For stock, $10 per share; for bonds, at
100% of principal amount.

Proceeds—To retire the pres¬

mortgage debt of the" company, to pay off shortterm bank borrowings, and for working capital. Office—

ent

1515

— J. Cliff
Trust Co. of

Cuming St., Omaha, Neb. Underwriters

Rahel

Co., Omaha, Neb.; and The First

&

Lincoln, Neb.

(Municipality of Metropolitan)

Toronto

Canada

fund de¬
1960
$32,741,000 on June 1, 1979; $142,000 June 1, 1934, and $340,000 June 1, 1989.
Price—To be supplied by amendment.
Proceeds—For various public works projects.
Under¬
writers—Harriman Ripley & Co. Inc. and The Dominion
4

filed

$39,982,000 of serial and sinking

bentures, of which $6,759,000 mature from June 1,
to June 1, 1974, and $33,223,000 mature as follows:

Securities Corp., both of New
Transcon

York.

Petroleum & Development

Corp.,

.

Mangum, Okla.
(letter of notification) 300,000 shares of com¬
mon
stock.
Price—At par ($1 per snare). - Proceeds—
For

development of oil properties.

Investment Planning

Bergen, N. J. Office—350 Broadway, New York, N. Y.

Underwriter—First

Co., Washington, D. C.

Inc., Lexington, Mass. (7/13-17)
shares of common stock (par $1).
amendment.
Proceeds — To
selling stockholders. Business—Manufacture and sale of

k Trans-Sonics,

filed 90,000

12

June

Price

June

Oil Tool Co.




nati, Ohio.

(par

to be offered for

&

Mass. Underwriter—Bear, Stearns
' //vW/y/,;< ////V■ / ."v*

March 20

•

Silver Creek Precision Corp.
.March 30 filed 1,550,000 shares of
account

Ave., Burlington,
Co., New York.'

June
•
Superior Window Co. (7/1)
May 15 filed 50,000 shares of 70-eent cumulative con¬
vertible preferred stock (par $8) and 125,000 shares of
class A common stock (par 10 cents). Price—For pre¬
ferred stock, $10 per share; and for common stock, $4
per share. Proceeds—To purchase the assets of Superior
Trucking Co.; for repayment of notes; and for general
corporate purposes. Office—625 E. 10th Ave., Hialeah,

At par. Proceeds—For working capital. Office — 3M
Worth Sheridan Rd., Chicago 14, 111. Underwriter—None

cents), of which 200,000 shares

for investment in subsidiaries, for working
and other corporate purposes. Office — South

(6/24)

York, N. Y.

June

HO

(7/6)

program,

Underwriter—American Israel Basic Economy Co., New

►debentures due Sept. 15, 1963 fo be offered for subscrip¬
tion by common stockholders on a pro rata basis. Price—

€he

Thursday, June 18, 1959

.

Operations Inc.

Technical

stock (par one

Price—At the market (but in no event less than
f6 per share). Proceeds—To selling stockholders. Office
—33 Great Neck Rd., Great Neck, N. Y. Underwriter—

cent).

and New York.

.Aug. 19 (letter of notification) $250,000 of 6% convertible

.

bentures

gram.

Sept. 26 (letter of notification) 3,567 shares of common
jtock (par $1), Price—$18.75 per share.
Proceeds—To
,Zo to a selling stockholder. Office—400 W. Viekery Blvd.,
Fort Worth, Tex. Underwriter—Kay & Co., Inc., Hous¬
ton, Tex.

►market.

Proceeds—To be applied for costs ift-

—$14 per share.

None.

(7/8)
June 9 filed 165,000 outstanding shares of common stock.
Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Underwriter—Francis I. duPont & Co.,
Lynchburg, Va., and New York.
Royal Dutch Petroleum Co./Shell Transport &
Rowe Furniture

•

May 13 filed 126,254 shares of common stor- to be of¬
fered for subscription by common stockholders at the
rate of one new share for each three shares held. Price

troduction

of Participations in Partnership
Interests, to be offered for sale in units. Price—$10,000
per unit.
Proceeds—For general corporate purposes.
Office—60 East 42nd Street, New York.
Underwriter
May 4 filed $5,580,00,0

—None.

Soi«..dr.criber Corp.

.

May 29 filed 75,000 shares of common stock. Price—To
be supplied by amendment.,. Proceeds—-For construction
capital

The subscription

lege).

Financial Chronicle

The Commercial and

(2772)

40

—

To be supplied by

precision transducers.
Co., Inc., New York.
•

Treasure

Hunters, Inc.

stock (par one
share. Proceeds—For salvage op¬
Office—1500 Massachusetts Avenue, N. W.,

June 4 filed

cent).

1.900,000 shares of common

Price—$1

erations.

Underwriter—Kidder, Peabody &

per

Washington, D. C.

Underwriter—None.

Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock (par $1).
Price
$10.75 per share.
Proceeds —For investment.
Office—South Main Street, Greenville, S. C.
Under¬
writer—To be supplied by amendment.
—

Tungsten Mountain Mining Co.
May 21 (letter of notification) $100,000 principal amount
of 7% first mortgage convertible bonds, to be offered
in denominations of $500 and $1,000 each. Price—100%

Proceeds—For construction, instal¬
equipment and working capital.
Office—511 Securities Building, Seattle 1, Wash. Under¬
writer—H. P. Pratt & Co., Seattle 4, Wash.
•
of

principal amount.

lation of machinery and

Volume

189

Number 5856

.

.

The Commercial arid Financial Chronicle

,

(2773)
Tyce Engineering Corp.
May 6 (letter of notification) 100,000 shares of common
stock (no par).
Price — $3 per share. Proceeds — For
working capital. Office -L 809 G. Street, Chula Vista,
Calif.

Underwriter—Pacific

Coast

Securities

Co.,

San

Francisco, Calif.
ic Union Light,

Heat &

Power Co.

(7/9)

—

bidders:

-

Halsey,

Stuart

& Co. Inc.; White,
Weld & Co.; Equitable Securities Corp.; Salomon Bros.
& Hut&ler; Morgan Stanley & Co. and W. E. Hutton &
Co. (jointly). Bids—Expected to be received
up to 11
a.m. (EDT) on
July 9.
United

Employees

Co.

Insurance

April 16 filed 2,000,000 shares of common stock (par $5)
Price -*■ $10 per share. Proceeds — For acquisition oi
operating properties, real and/or personal, includinj
office furniture, fixtures, equipment and office
space, bj
lease or purchase. Office —
Wilmington, Del. Under¬
writer—None.

Myrl

President.

L.

McKee

of

Portland,

\;vf;■.A'/A;

Ore.,

li

r A /./Ay /A

United States Glass & Chemical Corp.
Nov. 26 filed 708,750 outstanding shares of common stock.
Price—At market. Proceeds — To selling stockholder*.

Office—-Tiffin, Ohio. Underwriter—None.
ic United States Plywood Corp.

(7/15)
$15,000,000 of 20-year subordinated deben¬
1, 1979 (convertible into common to July
Price—To be supplied by amendment.
Pro¬
.

June 10 filed

tures due July

1,

1969.

ceeds—Together with other funds, for purchase of all of
the assets

(subject" to the liabilities) of the Booth-Kelly

Lumber Co. and the redemption of 38,084 shares of the

company's series A 3%% cumulative preferred stock
(par $i00)„ and "a maximum* ot '9/551Ahai;eS' of its series
B, 33/i % convertible cumulative preferred stock, $100
par.

Underwriter—Eastman Dillon, Union Securities &

Co., New York.
ic U.

11

Polymeric Chemicals, Inc.
75,930 shares of common stock (par 50
centsX, of which 55,930 shares are to be offered for sub¬
scription by stockholders at the rate of one new share
filed

for each six shares held of record June

30, 1959. The re¬
selling
supplied by amendment.
Proceeds—To be added to the general funds of the
company and used for corporate purposes, including a
$250,000 expenditure for the purchase and installation of
new processing
equipment, consisting principally of two
maining 20,000-shares
stockholders.
Price

are

—

To

to be sold by certain
be

,

additional ireaters for its Santa Ana (Calif.)
plant.

Un¬

derwriter—Dominick & Dominick, New York.
United Tourist

Enterprises, Inc.

.Jan. 28 filed 4,500,000 shares of

class A

common

stock

(par 50 cents).
Price—$2 per share.
Proceeds—For
development and construction of a "Western Village"
arid for

construction

of

a

Grand Estes Hotel

and

Con¬

vention

Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located in Larimer
County, Colo.
Office
330 South 39th Street, Boulder, Colo. Under¬
writer—Mid-West Securities Corp., Littleton, Colo.
—

-

Uranium Corp. of America,

—

general

16

cents).

Price—To

be

Portland, Ora.

sunolied

common

stock (pai

by amendment

(ex¬

pected to be $1 per share). Proceeds—For exploration
purposes.
Underwriter—To be named by amendment
Graham

Albert

Griswold

of

Portland,

Ore.,

is

Pres¬

ident.
Utah Concrete Pipe Co.
April 27 (letter of notification) 41,300 shares of common
stock (par $1). Price—$7.25 per share. Proceeds—To be
used to reduce long-term debt;
improvement and expan¬
sion of Ogden plant and for addition to
working capital.

Office—379-17th St., Ogden, Utah. Underwriter—Schwabacher & Co., San Francisco, Calif.

(letter of notification) 900,000 shares of com¬
mon stock. Price—At
par (10 cents per share). Proceed*
—For mining expenses. Office—305 Main
St., Park City
Utah.

Underwriter—Walter Sondrup
City, Utah.
•
J
A

&

Co., Salt Lak#

May 6

(letter of notification) 300,000 shares of capital
itock. Price
At par ($1 per share). Proceeds — Foi
development of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.
—

Utility Appliance Corp., Los Angeles, Calif.
April 5 (letter of notification) 50,000 shares of common
stock (par $1).
Price—$5.75 per share.
Proceeds—To
selling stockholders. Office—4851 South Alameda Street,
Los Angeles 53, Calif. Underwriter —
Dempsey-Tegeler
& Co., Los Angeles, Calif.
Variable

Annuity Life Insurance Co. of America
filed $4,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
April 21

cont
M
•

cts.

Proceeds—For

investment, etc. Office—1332
Street, N. W., Washington, D. C. Underwriter—None.
Victoria

May 25 filed 1,000,000 shares of common stock (par $2
funds). Price—$4.50 per share. Proceeds—
To construct and operate a racing
plant; and for work¬
ing capital and other corporate purposes. Office—Notre
Dame Avenue at King Street,
Winnipeg, Canada. Under¬
writer—G.
as

Everett

Parks

&

Co.,

Inc.,

New

York

to

and
South Seneca St.,

purposes. Office—211

Underwriter—Hill, Darlington

George,

.

Worthington Products, Inc. (6/22-26)
May 8 (letter of notification) $150,000 of 7% convertible
subordinated debentures due May
15, 1964 and 15,000

other

shares of

common stock
(par 25 cents) to be offered in
units of $500 of debentures and 50
shares of stock. Price
—$500 per unit.
Proceeds—For advances to
Nautilus, a

corporate

subsidiary, for equipment and working capital; also for

Newcastle, Wyo.

working capital of parent and molds and dies for new
Business—To design and sell marine
prod¬
ucts and boating accessories. Office—441
Lexington Ave.,
New York, N. Y. Underwriter—B.
Fennekohl & Co., New
York, N. Y. ' :
A;.:/U'Av A/A-

& Co., New York.

accessories.

Vulcan Materials Co., Mountain
Brook, Ala.
May 7 filed 252,526 shares of common

stock, of which

142,526 shares represent the balance of 250,000 shares
issuable upon the exercise of options
granted key em¬
ployees under the company's Employees Stock
Option
Plan. The remaining
110,000 shares are to be issued to
stockholders of Greystone Granite
Quarries, Inc., and
Pioneer Quarries Co., both North

a commission of
$1.50 per share. Price
($10 per share). Proceeds—To purchase addi¬
tional machinery and
equipment; research and experi¬
mentation; for initial contracts; and purchasri of addi¬
tional companies.
Underwriter—None.

3

filed

100,000

shares

of

A

common

$5 per share. Proceeds
For working
Office—1507 M Street, N. W.
Washington, D. C.
writer—None.
—

6880 Troost

construction costs. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; White, Weld &
Co., Stone & Webster
Securities Corp. and Kidder, Peabody & Co.
(jointly);
Salomon Bros. & Hutzler and
Equitable Securities Corp.
pay

(jointly).

Alabama

May 21 it
the

selling stockholders. Business—Savings and loan holding
company. Office—315 East Colorado St., Pasadena, Calif.

West End

Co., New York; and
Offering—Expected in

Bowl-A-Drome, Inc.

May 26

(letter of notification) preferred stock. Price—
At par ($100 per share). Proceeds—For
purchase of land;
payment

on

purchase

of

construction

of

building and payment on
Oneida St., Oneonta,

equipment. Office
N. Y. Underwriter—None.

—

Western California Telephone Co.
1 filed 44,729 shares of common

June

Corp.

Proceeds

30,000
To

—

shares
pay

contemplates
preferred stock (par

of

construction

costs.

Under¬

Baird-Atomic, Inc.

—

Chicago, 111.

of

writers—May be White, ,/Weld & Co., New York; and
Sterne, Agee & Leach, Birmingham, Ala.
OfferingExpected late August or early September.

Blvd., North

Financial Corp.
June 1 filed 387,300 outstanding shares of commod stock.
Price—To be supplied by amendment. Proceeds
To

William Blair & Co.,
latter part of June.

Gas

was announced that the company

issuance

$100).

June 19 stockholders will consider a two-for-one
split oil
the common stock and an increase in the

Wesco

&

Offering—Expected late August or early Sep¬
A A. A
.'.A' '/■„.•
A" A

tember.

Hollywood, Calif. Underwriter—None.

Underwriters—Goldman, Sachs

an

Alabama Gas Corp.
May 21- it was announced that the company plans to
issue $4,000,000 of first mortgage bonds.
Proceeds—To

Price—$3 per share. Proceeds—To develop
lightweight gasoline driven golf carts and
—

Co.; and $300,000

Prospective Offerings

stock.

capital.
Under¬

Wells Industries Corp.
May 14 (letter of notification) 66,600 shares of common
stock (par 50 cents) to be offered for
subscription by
stockholders on the basis of one new share for each five

for working capital. Office

fire insur¬
title insur¬

writer—None.

capacitor manufac¬
turers; and for working capital. Office — Englewood,
N. J. Underwriter—Charles Plohn &
Co., New York.

place

a
a

gage

facture of machines to be leased to

two

of

capital contribu¬

additional capital contribution to Great Plains Mort¬
Co. Office—319 E. "A" St., Casper, Wyo. Under¬

an

Wellington Electronics, Inc. (6/22)
May 6 filed 240,000 shares of common stock (par 75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank note; to complete the automation of the
etched
foil production plant at
Englewood, N. J.; for manu¬

shares held.

company; $500,000 for additional
to Great Plains Development

Inc.

class

capitalization of

$500,600 for capitalization

company;

tion

who will receive

—

Of these

Price—$4

that date.

ance

—At par

Washington Land Developers,

on

ance

privately to retail druggists through James D.
Wade, Jr., company's principal officer and stockholder,

Price

stock.

share. Proceeds—$300,000 will be used for
payment^
contract to purchase shares of International
Fidelity

Insurance Co.; $325,000 for

stock

to be sold

June

1

V
common

share for each 2.33 shares held
per
on

common

A"

partially completed sub¬
scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered
initially to share¬
holders of record Nov. 1,
1958, in the ratio of one new

Wade

Drug Corp., Shreveport, La.
April 28 filed 157,250 shares of class B

A,//

.

Wyoming Corp.

Nov. 17 filed 1,449,307 shares of
shares 1,199,307 are subject to

Carolina corporations,
and to certain other
parties in exchange for all the out¬
standing capital stock of Greystone and Pioneer and
certain real and personal
properties operated under lease
by Pioneer.

-

'

(6/23)

company's

~

authorized shares to provide additional shares for

templated equity financing.
Bank of
Feb.

A

con-

a

i

Commerce, Washington, D. C.

26 stockholders

of

the

Bank approved

the sale o&

2,000 shares of capital stock (par $100) to holders o£
record May 29, 1959, on the basis of one new
share for
each three shares
held; rights to expire on June 30,
Price—$150 per share.
Proceeds—To increase capital
and surplus.
Bank of Montreal

May 1, it

was announced Bank is offering to its stock¬
holders of record April
17, 1959 the right to subscribe
on or before July 10, 1959 for
675,000 additional shares
of capital stock on the basis of one new share
for each

fered for

eight shares held. Price—$32 per share, payable in 10
monthly installments from July 10, 1959 to April 8,

and

Canada.

stock, to be of¬

subscription by stockholders of record June 17,
1959, at the rate of one new share for each three common,
share for each five shares of preferred stock
that date. Rights expire on July 15.

one new

held

on

Price—$17.50

share.

Proceeds—Together with other funds, will be
applied to the repayment of borrowings for construction
and/or for additional construction in 1959. Office—15900
San Jose-Los Gatos
Road, Los Gatos, Calif. Underwriter
—None.

None.

White-Rogers Co.

(7/1)

Louis, Mo.

27 filed

$500,000 of debentures due 1991 (non in¬
bearing) and 800 shares of common stock (par

$25) to be offered to members of this club and
Concord Ltd. Price—$375 per common share and
debenture.

build

Registration—Expected this
10

plates

of

$1,000
To develop
property and
Underwriter—None.

Proceeds

certain facilities.

—

it

Inc., Cleveland, Ohio,

week.

Manufacturing Co.,
was

announced

that

Kansas City,
the

offering of $4,500,000 of

an

company

common

Mo.
contem¬

stock.

Pro¬

ceeds— For

expansion program and additional working
capital. Business—The company is engaged in the manu¬
facture of aircraft and missile parts, aluminum containers
and beer

barrels, aluminum curtain wall sections for the
industry and other proprietary products. Un¬

•

Big Apple Supermarkets, Inc.

June

2 it was announced that the
company plans the
issuance of 425,000 shares of common stock. Proceeds—
To be used for expansion program and
working capital.

Underwriter

Simmons & Co., New York. Offering—>
Expected sometime during July. Registration.—Expected
in

Wilmington Country Club, Wilmington, Del.

per

15 it was reported that the
company plans early
of $2,000,000 six-year 6%
secured
notes.
Underwriter—Fulton Reid & Co.,

registration

derwriter—S. D. Fuller & Co., New York.

,

constructing and equipping a new building in
Affton,
Mo. Office—1209 Cass
Ave., St. Louis, Mo. Underwriters
—Scherck, Richter Co., and Semple, Jacobs & Co., Inc.,

terest

Agent—Royal Trust Co., Montreal.

^ Barton Distilling Co.

building

May 28 filed $1,000,000 of convertible subordinated de¬
bentures due July 1, 1979. Price — To be
supplied by
amendment. Proceeds—To pay for part of the cost of

Oct.

Subscription

June

June

(par $10)
(par $25). Price —
At par.
Proceeds—For construction and equipment of
company's plant and for working capital. Office—300
Montgomery St., San Francisco, Calif. Underwriter—
•

1960.

Benson

Western Wood Fiber Co.
March 5 filed 100,000 shares of common stock
and 40,000 shares of preferred stock

v

in Canadian

withdraw
underwriter.


and for working capital

program,

both of St.

Raceway

—

Voss Oil Co.
(6/22-26)
May 27 filed 1,231,779 shares of class A common
stock,
of which
231,779 shares will be issued to creditors. Price
—$1 per share. Proceeds—To be used for a waterflood

per

Utah Oil Co. of New York, Inc.

Underwriter

purposes.

Co., Inc., New York.

•

•

Utah Minerals Co.

April 11

corporate

O'Neill &

•

April 30, 1957 filed 1,250,000 shares of

sinking fund
bonds, series C, due June 1, 1979. Proceeds—To be ap¬
plied to the cost of the company's construction
program,
including $4,350,000 of advances for construction pur¬
poses by Worcester's parent, New
England Gas & Elec¬
tric Association.
Underwriter—To be determined by
competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.; Blair & Co.
Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Coffin & Burr, Inc. and
Estabrook & Co. (jointly). Bids—To be
received up to¬
ll :30 a.m.
(EDT) on June 18 at 10 Temple St., Cam¬
bridge, Mass.
:.V

Vocaline Co. of
America, Inc. (6/23)
May 19 filed 210,000 shares of common stock
(par $1.50),
of which 180,000 shares are for the
account of the com¬
pany and 30,000 shares for selling stockholders.
Price—
To be supplied
by amendment. Proceeds
To retire
notes, to expand facilities and for working capital and

S.

/June

Worcester Gas Light Co. (6/18)
8 filed $5,000,000 of first mortgage

May

•

June 12 filed $6,100,000 of 30-year first
mortgage bonds
due 1989. Proceeds—To repay advances from its
parent,
the Cincinnati Gas & Electric
Co., and to finance a por¬
tion of' the company's construction
program.
Under¬
writer
To be determined
by competitive bidding.

Probable

Victory Markets, Inc.
May 25 (letter of notification) 20,000 shares of class A
common stock
(par $2). Price—$14.52 per share. Pro¬
ceeds—For inventory and
equipment and for working
capital. Office—54 E. Main St.,
Norwich, N. Y. Under¬
writer—S. D. Lunt & Co.,
Buffalo, N. Y.

41,

a

—

few days.

British Industries

May 12 it
mon

was

Corp.

announced sale of 75,000 shares

of

com¬

stock is

planned, of which half will be offered for
the account of the company, and the remainder for the
account of a selling stockholder.

Underwriter—Emanuel,

Continued

on

page

42

The Commercial and Financial Chronicle

Deetjen

000,000 of debentures. Underwriter—D. H. Blair & Co.,

Buckingham Transportation,

•

(7/1)

Inc.

.

Thursday, June 18, 1959

•

Southwest Corp.

Dec. 10 it

18

June

June 9 it was

*.

*"

'

City Power & Light Co.
& A- ,/• $
Dec. 29 it was reported that the company plans to. issue I.
Kansas

and sell

additional shares of common stock (par $10)
to its stockholders of record June 30, 1959, on the basis
of one new share for five shares then held (after a 50%
stock dividend); rights to expire on Aug. 3. Proceeds—
To increase capital and surplus. Underwriter—Blyth &

Stearns & Co.

May 19 it

that this company plans to issue
and sell to residents of Indiana only, $800,000 of 6%

ditional

Corp.

"

,

:• "•

was

^Essex Universal Corp.

be marketed this year.

rities have not

5V8%

The

&

are

Gas,
both
rates.
attractive in

portfolios, even if the buyer must
pay a premium over par to ob¬
tain

the

Unsold

bonds.

balances

The date and type of debt

Co. will, open bids for $20
of its

Wednesday's
Two

will

make

the bill of fare for

up

the

of

Same

in

form,

Eiforis of the Administration to

Treasury certainly could not have
better time

That

which

for

example,

seems

to be
dol¬

into

drums

bit early this year. But
for weeks ahead is

a

summer

calendar

light, to

say

the least.

-

Meantime the trend of things in
the
Treasury market is much
'

along- the

lines

Meantime,

mar¬

heading
the

the

to the
President's requests on debt limit
and interest ceiling, it is a safe
assumption that he will obtain
both, with quick action likely on
the first mentioned.

than the present, it now appears.

that dealers and
disposed to an-

such

•

de¬

as

rate

request
for

excuse

an

will

the

provide

dearth

of

niatter oLfact, the general
expectation m the Street is to
iook for a fiddle-faddle type of

to

tures

the

of $10

•.

f

i.

Elsenhower
the

debt

rate

been

_

holder

stock in
the

warrants

carry

is

sold.
_

And

capital

purchase

ratio to be fixed before

a

issue

to

entitling

„.,.

.v..........

the

Municipality of
Toronto, Canada is coming into
the market here for $39,982,000 to
be raised by
the sale of bonds
of varying maturities.
Proceeds
will be used for various purposes.

•

sent

<«

J

his proposals on
the interest

limit' and

Borton

Ohio

ceiling to Congress

meni:

securities

within

a narrow

have
range.

governmoved

inclined to take-tor the

more

lull

will

be

Could

Be

Busy

The

ensuing week could

fice

be

a

under

on

emphasis

as

there has been ?

prices has been toward slightly

Much the-same situation: exists
in the corporate

has

been

^ lucrative as well, since
ma^or undertakings, are being

market.

extremely

Volume

light

Monday

is

slated

44807
the

issues
son

some

such

as

of the recent

for

public

sinking

fund

business

Consolidated

will

Edi-

ment of part of its short debts,

use

the proceeds for retire-

Hotel
direction of

offices

Brimberg

change.

the

J.

Shapiro Opens

BAYONNE, N. J.—Joel Shapiro
formed J. Shapiro Co.; with
offices at 88 West 35th Street; to

xx

n

-

a

i,,.,,

securities business.

.

-•

v

N.

PURLING,
office

at

Manor

Two With House

1WO

under

.<•

.

affiliated

•'

■SALISBURY,' Md.—Laird,f*Bis—
sell & Meeds has opened a branch
office at * 130
East
Main
Street

>

•.

.

-

With X H. Ayres Co; '

H.;

.* COLUMBUS,
Buckwald and
are^

.

;

Joins

&

is

'East

j.

_

,

.

.

Cruttenden, Podesta

DENVER, Colo.-—Jack H. Oreck

He

J:~

Yadouga

now;affiliated- withCommon-

with

920

Co.,

has joined the staff of

Street.

John

East Town Street.

now

r

...

J,

&

*

Ohioi—Clarence J.

.

(Special to The Financial Chrcnjcte)

Podesta

■

wealth* Securities Corporation, 30

Williamette.
,

:

SPRINGS, Colo-

Ament

Ayres

House-

(Special Io-The Financial Chroniclf7).
,

-

W.

with

,

-

(Special to The Financial Chronicle)

.

Two With Commonwealth

management of Merrill

Tilghman.

/

:Inc- 1126 Oakwood

Laird, BuieU Branch

W.

Johannes

JOiiannes

fSpecial toTl,EFlI;"AKCI'u,caRONrcLK)

.*

C.DAYTON, Ohio.— William D.
Lee. and; John P. Sayers have

Eugene
.

.

.

Y —Morgan

Bavarian

A.

la

Conklin to limited partnership.

*• l

i

r»

•

lolS

-

Davis & Co. has opened a branch

has

Tuesday, Northern Illinois Gas engage in

Ex¬

•

j",F.: J.; Connelly & Company, 44

Morgan Davis Branch

J.

•

York Stock

v:

.

Lou^ J*

management' of

BrlmBerg, resident partner,.-.

Emil

Ex¬

New

branch in the Nautilus Hotel'
der

Street

40

,

Connelly to Admit

BEACH, N.
Y.—
Co. has "opened a

&

COLORADO

at

bers of the

Hartley.

Brimberg Branch* ■A-A

'

from

nership in A. T. Brod & Co., 120
Broadway, New York City, mem¬

Edge water

under' the

ATLANTIC

branch of¬

Barclay Securities Corporation
is now conducting its investment

deben-

new

Co. of. New York and Public




a

Beach

management of
•

over-the-counter, it has centered tures of Philip Morris Inc., which
chiefly in

North

offering by bankers of $40 million change Place, New York City.

and, of 20-year,

Building

under the
.

Now in New York Gity

'

done by the negotiated route.

lower levels.

the

Clarence

sidelines, bids have been thin and
such

at

Such.

r^?n^ bu^ pf

in

Calif.—Albert L.

Maguire1 has opened

Week

On June 18th, Albert A. Bhuger
will be* admitted to limited part¬
,

become

Maguire Opens Branch
LANCASTER,

upon us.

*

But with institutional investors
onoe

summer

A.;T. Brod to Admit

;

Florida—

Ross,

—

Co., Inc. of Cleveland
has opened branch ofBees, in the

figure things out. And by

then- the

GARDEN,

Edmund K.

&

n/V4

seek to

Florida" Branch

management
of
Kupka.
;*

Ross, Borton Offices;
YOUNGSTOWN,

selling stockholders. Underwriters—Mit& Templetonv: Los Angeles, Calif.; and
Co.,'San Francisco, Calif.' *
'***

Jones

Schwabacher &

the

_

aai,*

_

_

chum,

Winslow, Cohu & Stetson of New
Inc., has opened a branch

million of deben¬

market through the next month or Central Tower Building and in the
ivitroefAi'C"
nndff»ddn7»a
ticipate recently" Since"President so while investors and* traders Realty Building.
traders had

Proceeds—To

-

York,

office?

corporation has scheduled

sale

the

interest on the secondary investinent market.
^

Wayne Manufacturing Co., Los Angeles, Calif.
May 26 it was reported that this company plans a sec¬
ondary offering of about 90,000 shares of common stock.

secu¬

v' Opens

,

delay

velops in connection with the in¬
terest

big Italian
Monteeatini

the

enterprise
taking the lead.

'Congress finally concedes

get things "squared away" for the

Schedule

offerings of foreign origin

industrial

the

^

'a
«

WINTER

Wednesday iwith

.

million

mortgage bonds.

pretty well whittled away.
More

*

23; J. W. McAfee, President, stated that the com¬
plans to sell about $30,000,000 of * additional com¬
mon
stock later this year through rights. to common
stockholders. Proceeds—For expansion program. Under¬
writer—May be determined : by competitive bidding.
Probable bidders: Lehman Brothers; White, Weld & CoM
and Shields & Co. (jointly); Merrill Lynch, Pierce, Fen¬
ner &
Smith, Inc. Offering—Expected toward the end
of the third quarter of 1959.
;
-t

competitive bidding. Probable bidders:?

in those offerings have now been

Whatever

:

pany

yet been determined. Underwriter—To

as

be determined by

coupon

coupons

. . ,

was

Feb.

$5,000,000-equipment trust certificates. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
4c Pacific Power & Light Co. .
May 22 it was announced that the company plans tor
market $8,000,000 in new securities through .1961. This;figure includes $10,000,000 in debt securities which may

15 it was reported that the company in the next
few months expects the issuance and sale of about $2,-

ket,

June 15 it

of 300,000

June

Electric

; 1

f

•

4c Tube-Kote,

;

ceive bids sometime in July for the purchase from it of

Service

^ /";■

during the second or third week in July.

y

;

,

to increase the authorized
preferred stock to 1,000,000 shares from 472,229 shares,
and the common stock to 25,300,000 shares from 20,300,000 shares. Proceeds — For major expansion program.
Underwriter—White, Weld & Co., New York.

issue

'

announced that the company plans an of-*

share.

per

Stockholders voted April 28

carrying

Hutzlerf

Speedry Chemical Products Co. Inc.
,
May 15 it was announced that the company plans an
offering of 208,666 shares of common stock. Underwriter
—S. D. Fuller & Co., New York.
Offering—Expected

shares of common stock. Price—$1"
Office—Mineola, New York; Underwriter-^Simmons & Co.,, New York,
j " ',
;
- r v ''
4c Northern Pacific Ry. '■.
/■/(' ''/> •/•///;•"
June 15 it was reported that the company plans to re¬

offer¬

Beane, New York.

new

Co. Inc.; Salomon Bros: &

r

*

El Paso Natural Gas Co.

corporate,

**

finane- /

some

S;.

year equipment trust certificates maturing annually from
1; 1960 to l'974i Underwriter—To be determined by
competitive bidding. Probable7 bidders: HMseyr Stuart &

Chicago

plans

"*

-

W :

June
/

and New
A'':A7y •

..

-;

Inc.
■-*.- \ •
-■w v*
reported that the company plans?an a'ddifering of 950,000 shares of capital stock. Price — $10 pei /
:tiohar common stock offering of between $2,500,000 to
share.
Proceeds—To increase capital and surplus. Un- •'
derwriter—John M. Tait & Associates, Cincinnati, Ohio V $3,000,000. Underwriters — Glore," Forgan &. Go., New
York, and Rowles, Winston & Co., Houston, Tex.
North Hills Electric Co. (7/15)
• Union Electric Co.
(Mo.)
*
June 2 it was announced that the company plans the
Dec. 1 it

ing of $4,000,000 to $5,000,000 of debentures. Underwriters
—Cruttenden, Podesta & Co., Chicago, 111. and J. R.

The

^

Expected in August or September.
North American Equitable Life Assurance Co.

issuance

an

,

ing. Business—Distributor of electronic parts. Offering-

(Florida)

reported that the company plans

a

■■

June 2 it was reported that company

Natural Gas Co.

at

v

■

•

Bids will be received by the* company up to noon (EDT)
on June ^4 for the purchase from it of
$6,000,000 of 15-

-

-

announced that company plans some adstock financing. Underwriter—Auehin->

was

Newark Electric Co. of

19, James Comerford, President, announced that
company plans later in year to issue and sell $20,000,000
of debenture bonds, if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co. and The First Boston Corp. (jointly); White, Weld
& Co. and Paine, Webber, Jackson & Curtis (jointly).

been undertaken

»,

T

common

'

York.

May

&

;

*••';•*

^'Ijointly);*-''^r'i;':^^/iv''"^>1:';''
Southern Pacific Cb^'(6/24)

closs, Parker & Redpath, Washington; D/C.

sinking fund debentures'' due Jul^'l, 1974. Price—100%
principal amount. Underwriter—City Securities Corp.,
Indianapolis; Ind. *

of

Williston

(jointly).

Travelwear

Leeds

Consolidated Finance Corp.

was

Corp.; The First Boston Corp. and Smith, Barney &-Co.

(jointly);

Inc.

Weld & Co. and Shields & Co.

June 8 it was reported

^ Coral Ridge Properties

/
,

Equitable Securfties Corp.; White,
(jointly); Kuhn, Loeb
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear,
Co.,

Co., Inc., Los Angeles, Calif.

June 15 it

$20,000,000 of first mortgage bonds. Proceeds—
program.
Underwriter—To be deter¬

mined by competitive bidding. Probable bidders: Halsey..
Stuart & Co. Ihc.; The First Boston Corp.. and Blyth &

of 210,000

May 15, Frank McLaughlin, President, announced com¬
pany plans to issue and sell first mortgage bonds later
in the year; Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart St Co.
Inc. and' Lehman Brothers
(jointly); Merrill Lynch,
Pierce, Fenner & Smith, Inc;; Stone & Webster Securities

,

construction

For

Los Angeles, Calif.
announced that the bank plans an offering

Consolidated

.

<Public Service Co. of New Hampshire /
f
f
April 22: it was stated' in the company's annual report
that it' plans the raising of $13,250,000 from outside
Ralsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea-*,
body & Co. and Shields & Co.- (jointly); Lehman Broth- • sources. This new money wilLcome partially from, shortterm obligations but principally from permanent .financers; The First Boston Corp.; Morgan Stanley. & Co.,;
ih g, the arnotmt arid type. df which, has not as-yet been
Squitabie Securities Corp. and Eastman Dillon, Union
determined". ^ Proceeds—To meet construction requireSecurities & Co. (jointly); Harriman Ripley & Co. Inc."
'
Registration—Planned for Aug. 21.
Bids—Expected to ;* ments for* 1959.
be received on Sept. 17.
-///
Puget Sound Power & Light Co.

National Bank,

Citizens

'

announced that the company plans to issue

was

■

Halsey,

equipment trust certificates. Probable bidders:
Stuart & Co. Inc.;, Salomon Bros. & Hutzler.

*

$18,000,000 of 30-year first mortgage bonds. Pro¬
construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders/

to noon (CDT)
it of $7,050,000 of

purchase, from

the

for

manufactures-

and sell

Bids will be received by the company up
on

&

ceeds—For

(6/18)

Burlington & Quincy RR.

Chicago

Securities & Co. and Kidder,

Peabody & Co. Inc.
Co., Inc.-and White, Weld" & Co.
(jointly);* Lehman Brothers,Bear, Stearns & Co. and
Salomon Bros. & Hutzien (jointly);
*
•«,- >
<
Pan American World Airways, Inc. >
^
May 26 authorized the company to offer up to $50,000,000 of'.convertible: debentures.
Stockholders Would
have pre-emptive rights to subscribe for these securi¬
ties. Proceeds—For purchase of equipment, etc. Under¬
writers —May be Lehman Brothers and Hornblower &
Weeks, both of New York.
: r
.</■?■>£< «//• ' VvL;

■

company

(9/17)

Georgia Power Co.

.

the company in view of
genera It v favorable market conditions, is now consider¬
ing the~ sale of 350,000 or 400,000 shares of common
stock.
Offering—Expected sometime this Fall. .Under¬
writers—To be determined by competitive bidding;
ley & Cov Inc. (jointly); Lehman Brothers and Lazard
Probable bidders: Blyth & Co., Inc. and Harriman RipFreres & Co. (jointly); The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Smith, Inc., jointly.
•

Business—The

stock.

common

Co., Chicago, 111.

Central &

bonds—Halsey, Stuart & Co. Inc.; Eastman Dillon,

(jointly);!-, Blyth

polyethylene film. Office—36-35 36th Street, Long Island
City, N. Y. Underwriter—Maltz Greenwald & Co., NewYork.
Offering—Expected sometime this Summer.

May 19 it was announced that

j

.

•

May 4 it was reported that the company is seeking
early ICC approval for the issuance of 250,000 shares of
class A common stock. Underwriter— Cruttenden, Podesta &

'■"

Extrudo-Film Co.

about June 22.

or

Union

^>i

* %,\\fy
June 8 it was reported that this company, which is pri¬
vately owned, plans public offering of 175,000 shares of

Registration—Expected on

& Co., New York.

For

New York. Offering—Not imminent;-*..7-

41

Continued from page

•

.

(2774)

j42

Co.,
was

524

Seventeenth

"

;

with

(SpLciul to. Tiirr

Financial.Chronicle/

WICHITA, Kans.

Drake

.and

Frank

—

Archie L.

A.

Hawkins

have become associated with First

Securities -Company/ of. Kansas,

Cruttenden, Incr,

formerly,

Walston & Co., Inc.

v.

Two With First Sees.

Schweiter*

Building.'

D^rake* was formerly with
Cochran & CO.

'Mr.

Milburn

Mr. Hawkins

was

with Luce, Thompson & Crowe.

,Volume 189

Number 5856

..

The
Commercial and Financial Chronicle

.

(2775)

Blue Marlin
W!l''

(U. S.

where

Fishing Tournament

funds

when

opportunities

Puerto Rico)

versus

the

available

":.
:

' >m-r

:■
:

tUt

'

■

'

"

' ?•:

v

<Yfe:';:.s3^
1:

><

>

f/>)/

A?

v

7

.

.

v

cautious

more

v

DIVIDEND NOTICES

investment

UNITED SHOE MACHINERY

/

CORPORATION

ap¬

V

210th Consecutive

The

With Grant, Fontaine

.-«& .*>: y-N;

;••> <&>.;:

with Estate Securities

now

Corporation, 1600 Ogden Street.

ticularly suggest that today offers
reasons
for
adopting a

proach.

&<<«&>•:

kill is

special

/

"

With Estate Securities
DENVER, Colo.—Paul O. Dris-

a
sound
investment
philosophy
should always require
compromise
between the extremes, and I
par¬

'SS

,

stock

program is, of course, a compro¬
mise, but I profoundly believe that

>

-v;-.

V

readily

attractive

common

a

''■r
\V r-,;^
,.<■>>,,>;
:

'

for

be

if

purchases develop during the next
three years.
The adoption of such

:;vs

-

will

and

49

has

(Special to The-Financial Chronicle)

OAKLAND,
staff

of

37Yz

Grant,

He

cents per

with Walston &

& Co.,
formerly

was

Directors

dividend Of

share On the
and
stock
62 Yz
share on the Com¬
mon
stock, both payable
August 1, 1959 to stock¬

C.
added to the

Fontaine

360 21st Street.

of
a

cents per

Preferred

Calif.—Ralph

Nicholson has, been

Quarterly Dividend

Board

declared

holders

Co., Inc. and Dean

of

record

July

3.

1959.

Witter & Co.

Arthur W. Moffatt.

■

Treasurer

DIVIDEND

June 10,1959

NOTICES

CITY INVESTING COMPANY
25
The

Broad

Street,

Board of

New

York

Directors of

June

4,

N.

Y.

this

company on
semiannual divi¬

17, 1959, declared a
dend of 20 cents per share, and an extra
dividend
of
10
cents
per
share on the
outstanding Common Stock of the company,
payable August 14,; 1959. to the stockholders
"of record at close of business on July
24,

WAGNER BAKING

1959.
JOHN

Vice

A.

KENNEDY,

President and

;

Secretary<•

CORPORATI ON
v

•

-

,

The
a

Board

the

1,

CANADIAN PACIFIC

(

Directors

of

dividend

of

$1.75

has

declared
share on

per

Preferred

7%

1959,

Stock payable July
stockholders
o-f
record

to

June. 19,

1959.
J.

RAILWAY COMPANY

,

C.

j.

STEVENS,. Secretary

.

Dividend Notice
4

r

'

.

At

"

*'

V. * >

'

f1

'• '

Wo OPALL |

**

.

,

meeting of the Board of
Directors held today a dividend
of seventy-five cents per share on
the Ordinary Capital Stock was
declared in respect of the year
1959, payable in Canadian funds

In tKe"International Challenge Blue Marlin
Fishing Tournament off Cape Hatteras, June
6-8, the Puerto Rico Team defeated the United^

; f\:

.

States

by

a

of

score

7

to

1.

The first

.

caught

;
^

523

Governor of North Carolina, and Esteban A.

members

William

H.

Biscombe,

of the Puerto Rico Team.

Jr.,

He

pounder

and

"Albatross

Angel

183;

U.

S.

Team

Miami,
other
336

/

caught

taxidermist
*

1

stantial

only affect this security to
minor degree because of
the shortness .Of -the maturity..
The

no

op¬

portunity for larger profit

as

the

Note is
at

a

debt obligation payable

$1,000
approximately 'three
hencei
The Note therefore

years

is

obviously

no

3.2%

corporate

bonfe^nd approximate¬
less thasithe return avail¬

ly 1%

short-term

on"

stocks^fell to yield

protection against less than

inflation during this period.
However, the important

Government

obligations. The best regarded in¬
dustrial

reasons

thi&aa^rage.

than

catch

are

Averages from 160 in 1948 to

over

630 in 1959. the very extent of this

rise

would

advisability
investment

to

seem

of

suggest

the

more "cautious

a

market,

stocks, and to
I

believe

this

but
a

of

substantial degree

is

true.

the stock market is
dicator

market

a

a

which, in

a

_

However,

sensitive in¬

truth,

registers

with

greater

less. .'

even

,

price

A^i^xamples,' Inter¬

Business

Machines

sells

yield slightly over one-half of
1% on its regular dividend and

Polaroid

sells

to

yield

less

than

2/10ths of 1%'qtf its regular divi¬
dend. The shares of most com¬

panies

therefore

are

M. E. GRIFFIN,
Secretary-Treasurer,

discounting

.

CORPORATION

a

witness

New

sub¬

readjustments

in

COMMON

and.

are

the

assured

differences,

many

The

yet,

than'; 25

more

years

the

Dow

Jones

Averages
regained their 1929 highs.
\
Obviously no .one would suggest
that any investor place all, or even

On June JO, 1959, the Board
of

DIVIDENDS

Trustees

have

Directors

quarterly

NOS. 49

declared

V

payable

|

quarterly dividend of. $1.12
per
share on the 414% cumulative
Of

j

I

$100

cents

|

Preferred

(2716d) per share on the common
shares of the; Association payable
July 15, 1959. Both dividends are
payable to shareholders of record

j

$25

CONVERTIBLE PREFERRED SHARES

and one-half

the close of business

fune 25,

1959.
B.

m

Pre-

A.

Date

Pay¬

i

able

Per

par

|
♦

•>

value
8-1-59

Stock,

par value

43A% Sinking
Fund Series
8-1-59

$0.29"/,*

of his

i

j
|

b. c. Reynolds,

Secretary
■

one

than

a

PACIFIC

POWER

& LIGHT COMPANY

moderate proportion

funds in "the security that

he likes best."

Similarly, I do not
all,
portion of
their funds, in short-term U. S.
Treasury Notes, but I do believe

recommend that investors put
or

even

that

a

each

substantial

investor

should

con¬

Dividend Notice

When their hopes, that
is their optimism, run high, the
market rises, just as it declines

offer

when

Historically,

suggest that he review his list of

Quarterly dividends of $1.25 per share on the 5%
preferred stock, $1.13" per share on the 4.52% serial
preferred stock, $1.54 per share on the 6.16% serial
preferred stock, $1.41 petf shard on the 5.64% serial
preferred stock, and 40 c&bts per share on the
common
stock of Pacific PoWer &
Light Company

agonizing fear Of inflation, stock

likes

equities, prune out the ones he
least, sell a few of those
whose prices are very attractive

June 30, 1959.

in advance the strong

some

ing public.

hopes of investors.

fear

is

the

or

an

is

pessimism. And, w&en this

translated

individual
no

dominant psychology

escape

into

evaluations

of

securities, there is still
from the basic fact that

individual

price

security sells at a
determined
by the hopes

and fears of investors. The income

To

r&e, the statistics themselves
ample warnings to investors.

and for good eco¬
nomic reasons, and except for the
prices should be' vulnerable when
debt

securities

panies

can

about 1

Vz %

If there is

yield-on the Dow-Jones Industrial and




years

a

of

be
more

the

same

com¬

to yield
than the eauities.

bought

a change in conditions,
consequent change in psy¬

sider thoughtfully the advisabil¬
ity of having a solid cash, or cash

equivalent, type of investment in
his

portfolio.

And

I

therefore

today, and re-invest the proceeds
temporarily

in

Treasury Notes.
creating

an

short-term

U.

S.

He will thus be

equity buying

reserve

have

•

v:

MHitiin

proportion of his
security. Those who
for thjs column do
suggest that an investor place

•<

$1.25

J
Johnson, Treasurer

June 11,,1959

write .articles

*

Preferred Stock,

5% Series

I

Rate

Share

substantial

more

1

stockholders of

J

at

I

to

|

the

I

regular
on

record July 15,1959, as follows:

a

of twenty-seven

|
|

declared

dividends

ferred Stock of this corporation,

Associatiop-;, payable July 1,
1959, and a quarterly dividend

hear of the

we

\

PREFERRED AND

heard often

we

England Gas

and Electric Association

In the pe^

prior to then, this country was
a long-term,
inflationary cycle.

not

.

Montreal, June 8, 1959.

elapsed after the collapse in 1929

a

■

F.

any

was

but I do suggest that in the 1920's

so-called .funds, in

to

the hopes and fears of the invest¬

i

.

"romance," "grcnyth" or whatever
you wish to cM it, sell to yield
national

philosophy.

We hear often that this is not

stock

securities

of

30, 1959.

DIVIDEND NOTICE
could

we

1929; there

before

payable

stockholders

Turner,
Secretary.

(

growth in population.. I do not
suggest a precise analogy between
today's conditions and those of

in

to

FINANCE

His

income

tional

Common

declared

PACIFIC

fish

more

prior, to 1929,

And

example, DuPont is selling
to yield approximately 2.4%
on
its regular dividend. General Elec¬

this particular se¬
the negative ones. After tric and Union Carbide are sell¬
years of rising stock market prices ing to yield approximately 2 Vz %
Some'
which have lifted the Dow-Jones on their regular£dividends.

curity

T.

built-in and accelerating inflation,
the
prospective growth of na¬

as

even

For

for purchasing

record June

the

on

been

July 15,; 1959,

f

By order of the Board.

share

per

Stock has

caught by the

Prosperity." Today

Average

able

30^"

'

1959."

of the'so-called "New Plateaus of

Group is approximately
today,, which is approxi¬
mately 1 Vz% less than the return
single disadvantage to this available on our highest grade

investment is that it offers

shareholders
June 19,

1959, to

••vvV:,

•

chology,

The SecurityTLikeBest

Bis-

N C

by A1 Pflueger, North

earth.

on

riod

very

was

Jose

and

these equity markets.

a

1,

Ernat

William

157

The only fish

•

was,

pounder.

III";

Burchart,

Fla., ,who mounts

Continued from page 2

would

Aug.

of record at 3.30 p.m. on

of the Tournament with

fishing from Capt.

was

Urdaz,1140 lbs."

all

'a

360

a

scorer

cruiser

combe,

Below: Rafael Figueroa, Jose Urdaz, Angel
and

heaviest,

points.

Foster's

-^-Birdr Captain of the Puerto Rico Team.
Buchart

highest

|

The regular quarterly dividend oi

'

Standing Left to Right: William G. Carring"
ton, Jr., partner, Ira Haupt & Co., member of
1
Puerto Rico Team;
Dfiv J. Cr Overbey, Captain.
U. S. Team; the' Honorable Luther Hodges;--5

A.

the

second

f

7;

<

on

day's catch above: Bill Carrington

NPLSTH I l >

a

been

declared for payment July 10, 1050, to
of record
at
the close of busmess

stockholders

PORTLAND, OREGON

H. W. Millay, Secretary

June 10,1959
w

i

The Commercial and Financial

44

Chronicle

.

port

Washington...
A ^ g-M
jTjL f islM/

Behind -the-Scene Interpretation*
from the Nation'*

Capital

SECURITIES

processed ingredients, and what
the housewife pays for a loaf
bread

of

higher

that

assert

economists

meeting
the
challenges
by
increased
mechanization from the mixing
of the dough on through the
bakeries

the

pack¬

the automatic

and

ovens

are

aging lines.
The

the

of

deter¬

Department is making to
mine

relationship between
farmer gets for his

the

what

the

unprocessed

to what the

crops

finished

housewife pays for the

product.

.

bread prices,
mountain sur¬
plus of wheat, is one of the
great
contradictions
marking
the American agriculture policy
as
the perplexities grow and
some

as

find

"to

some

Congressmen try

bushel.

a

it

farmers

The

growing muddle, and
taxpayers have long been
the

over

the

displeased with the way things
been going.
Some members of Congress try to blame
it on Secretary of Agriculture
Ezra Taft Benson. However, the
housewives and the American
have

people know that
the farm
problems have been with us
for years and appear destined
to

be

.

with

for

us

come.

to

years
>

<

•

hundreds of thousands or

Fathers' Day
cakes will be baked during the
of

millions

week, the deadline draws nearer
for

wheat law. Unless a

new

a

by July 10,
1,80.0,000 farmers

law is passed

new

estimated

an

continue

"will

the

existing pro¬

and grow all the wheat
they can for another year. And,
as
perhaps most people know,
'There is more wheat on hand
gram,

than the world wants. Our

How

country

even* give

cannot

it

storing
surplus
wheat, the cold facts are that
half our farms have gross in¬
and

comes

of less than $2,500 a year.

Some

producers

with

might get
bOfory the

However, Confess

Together

bill
JFourth of July holidays. Despite
the
opposition of the
Eisen¬
on

a

Administration, the
House a few days ago passed
a
bill to raise price sUP^orts
and cut down on production in

hower
^

I960

small

few commodities are a

in

influence

ing

subsidies is at

Senate

would

vocate

at

every

do

the

quire

bill, differing from
passed wheat bill,

require
same

farmers

time

to

re¬

by 25%, but
would

it

November

last
corn

price level to 90%

of parity.

Administration

The

tains,

main¬

it has statistics to
back up the contentions, that
if the acreage is cut, farmers
and

and

find

will

use

about

K

the

more

as

efficient

more

acreage

w*v«g-

fertilizer to

much wheat
was

cut.

as

'

„

on

>

y

>'cr-

surplus wheat.



.

sals

elim¬

and
gave

acreage
allotments
price support levels.

same

Background

Mr. Benson's

Who

cabinet

this

is

whose stock

to be ris¬

appears

realize

ing in the farm belt despite his
consistent
stand against high
subsidies

farm

to

their

pioneered

these

pud huge sur¬
in Whitney,

who

Young

the

Valley.

Mr.

Idaho

farm

grew

up

Salt

Isles

as

so

so

history

many

and

As

of

so

in

well

Church of Jesus Christ

Saints. Upon re¬

turning to the United States he
entered
Brigham Young Uni¬

that

surplus farm products, most

$1,000,000,000

is

a

year

There

these surpluses.

licized

cases

like

that

influential

Many

abolishing

pub¬

on

Ray

of

appears

the

the

deceived

Ii£

.1

a

he

on

about

agriculture
to

means

and

more

the

and

economy

FOREIGN SECURITIES

it

this

20 BROAD

STREET

long ago Mr. Benson

went back to where he
to

sing

Corporation,
11

the

proud

learned

Iowa

song.

w a

s" an¬

nounced by B.
Earl Puckett,
Chairman
-

of

the Board. Mr.

Kahn, a part¬
in Lehman.

ner

Brothers, is
also a director
of Avco

Man-

ufactu ring

"Corporation,
ncrman

ft.

Kann

Dayton Rub¬
ber

Company,

Fruehauf Trailer Co., Sutherland
Paper Co., Microwave Associates,
Inc. and William Street Sales, Inc.

Attention

Brokers and Dealers:

Industries
Mills

•

Co. Inc.

York telephone

\

♦

'

...

t''

NEW YORK 5, N. Y.

number is

LERNER t CO.
Investment Securities

Telephone

'

Serv.

CAnal 6-3840

10 Post Office Square,

too

di¬

SPECIALISTS
TELETYPE NY 1-971

TEL: HANOVER 2-0050

nation.
No

a

Stores

lied

Our New

Carl Marks

of

elected

rector of Al¬

Southeastern Pub.

and

what

been

has

Kahn

Official Films

more

the modest income,

learned

H.

Botany

days after he married Miss Flora
Smith Amussen. The frugal Mr.

his bride

Elected Director
Herman

Indian Head

Agricultural College
at
Am«^ where he enrolled as a
graduate student, only a
few

Benson and

Coast Guard.

program

ground that it has been

State

Ezra Taft

during World War II was a Lt.
Commander in the United States

people favor

whole

m<oiitli scholarship at Iowa

a

'buying

TRADING MARKETS

graduated with honors,

Subsequently

the

to be a grow¬

versity, Provo, Utah, where he

$70

a member
department staff
since March, 1946, and was elected
an
Assistant
Vice-President
in
December, 1956. He is a graduate
of the Columbia University School
of Business—Class of 1941—and

Mr.' Winter has been

of

469

every where

United

the

in

during World War II.

lint

against the whole farm program.
.

There have been several

"

University

the

a' Lieutenant

States Navy

year,

nearly double.

sentiment

ing

terest and handling charges of

last

produced

1940

in

pounds last year,

being paid out in storage, in¬

of

was

of

An average acre

produced 250 pounds of

cotton

cotton.

total

graduate

revolution; Ail

27

produced

nearly double.

tied up

A

a

California—Class, of 1941—and

that produced 28
bushels of corn in 1940 produced
52 bushels in 1958, nearly dou¬
ble. An average acre that produced 15 bushels of wheat in
1940

of it in corn, wheat and

is
of

acre

average

Nation's taxpay¬

$9,000,000,000

Assistant VicePresident in December, 1956. He
an

of

examples

some

the technological

few, he has declared on.

have

are

depart¬

buying

since July, 1946, and

elected

centrol program
this program had

after

Here

mankind

been fed

of the firm's

was

caused to serve a useful purpose.

has

he

Mr. Morehouse has been a mem¬

ber

ment ^staff

acreage

long

than one occasion.

Thus far the
ers

missionary

a

by

!

an

attending Utah State Agricul¬
tural
College.
Logan.
Utah,
'from 1918 to 1921, he. went
overseas
and
served
in the
the

culture, and the continuance of
an
outmoded
price
support,

,

on

farm, and cultivated a
there. i&The West. After

British

have

more

/

.

Benson

in

Never

one

settled

technological revolution in agri¬

be blamed for this problem.

to

of the /;
original pioneers with BrighSln
Benson,

Problem"

pointed out, the farmers are not.

the Secretary is a great grand¬
son
of
the
Mormon
apostle,
Taft

America.

all

with author¬

Mr. Benson says

not

and

on

ity that the farm problem was
not caused by the farmers, but
from
two specific factors: the

just a "farm problem,"
but it is a problem of the nation
is

pluses?
Born
Franklin County, Idaho, in 1899,

Ezra

the United States Treasury.

Benson and fairpeople everywhere
that the farm problem;

minded

payments from

direct

come

faith

Secretary

officer

substantial part of their in¬

V a

fields."

rich

some

same

quiet

strength

who

ancesters

the

have

farmers

vision

from

would

Secretary,
"but they produce
bushels to the acre. And

more

the

farmer.

there are propo¬
quarters that
make farmers depend for

Nevertheless,

we

those

file

and

rank

the

to

the
cornstalks
in
not be as tall as
remember," said the

very

may

Not Merely, a "Farm

lived

*5fn,.P

^orcl wheat supinvester'
..and, thus far has
000 (*'
A approximately $3,500,of " ^
 through support prices
plies

Delta.

which

almost

to

However,

re¬

of Agriculture

Secretary

Benson to increase the support

^

"Today,
Iowa

want

.1

to

little of the
money for storage, interest and
handling charges is being paid

Mississippi

and

ture. Corn farmers voted

3

for idle acreage.

bank program

to

big

not

outs

a

the wheat fields
the cotton fields
behind the levees in the fertile

majority of farmers
government hand¬
government
regi¬
mentation. They want freedom f
and less government in agricul¬
The

was

of Kansas, and

ad¬
opportunity:

continues

$791,488
in
support
loans and an additional $405,647
in funds from the Federal soil,

received

fields of Iowa,

Capitol Hill, not only from
the Democrats, but also from
some
Republicans
from
the
States,

Hugh Garvey of Wichita, Kan.,
who in the last four years has

Corn
little

being done in the corn

what is

on

Farm

Tall
did a

pertinent
observation, because it reflects

reminiscing. It

has

he

he

There

Grows."

despite the verbal blasting
received left and right

son,

the

Where

"That's

rising.

and

✓

duce their acreage

at

farm

all-time high,

an

Edward J. Morehouse

Winter

Proctor

porated, 63 Wall Street, New York
City,
has
been
announced
by
Stuart F. Silloway, President.

market.

the

maintaining

of

cost

The

strike!''

'Looks like another wildcat

of a
depress¬

surpluses

Tremendous

of Latter Day
The House

the

struggling

efficiently.

to farm

for

1961.

and

are

allotments which
to permit them

acreage
too

Lake

away,
'

getting rich

are

many

raising

and lower

/The Wheat Fiasco
As

and

legally.

inate

even

operating
doing

are

program,

Secretary of Agriculture Ben¬

unhappy

are

They

the

While

it on.

how, to blame

some

some

way,

some

one,

Co., Incor-

of Harriman Ripley &

surplus

They are producing it
parts of the Southwest
60 and 65 cents

\vheat.

the growing

grow

The election of Edward J. More¬

Presidents of the investment firm

for as little as

are

increasing

The

and

,

i
Ripley Y.-Ps.

Harriman

Affluent

getting rich producing

under

Department's tracing of
price trend is part
continuing
study the

views.]

Morehouse, Winter

Meanwhile, many farmers are

bread

the

pro¬

house and Proctor Winter as Vice-

Some Wheat Farmers

in

present

be

changed in order to stamp
out the abuses.
v ;

bushel for the

SI.81 a
surplus wheat.
pay

affecting the bakeries,

rises are

and

will
to

rates, plus more fringe
benefits, is the cause for the
higher bread costs. The wage
wage

the

or

,

economy.

should

program

the "Chronicle's" own

wheat farmers Is sched¬
July 23. The Government
be ready, under the law,

uled

Agriculture

of

the

for

agricultural
the

pretation from the nations Capital
and may or may not coincide with

among

has widened.

rolls

or

Department

left

its

V

only
Nation

are

[This column is intended to re¬
flect the "behind the scene" inter¬

has an¬
nounced that beginning July 1
(unless a new law is passed)
the acreage will be 55,000,000,
which would be the minimum
he could cut it under the law.
The customary referendum

prices have gone up every year
since 1945. The spread between
what the farmer gets
for his
wheat
and
the
other
un¬

that there

abolished,
'■

Benson

Secretary

C.—Bread

pro¬

grams

AND CO.

WASHINGTON, D.

no

and acreage control
has been a flop. <

Either

SNOODLE W

is

sup¬

roads

two
and

^-v « ■

old

the

that

seems

It

JL Cr Cv

There

failure.

price

doubt

gram

;

". Thursday, June 18, 1959

big

one

BUSINESS BUZZ

■

.

(2776)

HUbbard 2-1990

Boston 9, Mass.
Teletype
BS 69

Volume

Number

189

5856

...

The Commercial and Financial

PICTORIAL

Chronicle

1

Municipal Bond Club of New York

R. George Le
A
Co., Inc.,

James

Vind, Blyth A Co., Inc., newly elected Vice President; E. Barron Rockwell, Halsey Stuart
President Elect; Charles E. Weigold, Chas. E. Weigold A Co., A Past President;
Gilbert, Hornblower A Weeks; Charles F. Kavanagh, Bacon, Stevenson A Co.

Blyth A Co., Inc., General Chairman; George W.
William R. Pollock A Co., Vice Chairman

Jerome J. Burke,

Hall,

Harry J. Peiser, Ira Haupt A
William

Marshall

Edmund O'Leary, Eastman Dillon, Union Securities A Co.; William Simon,
Robert Schlicting, Kidder, Peabody A Co.; Charles V. Smith, Clark,

William

F.

K.

Pfeffer,

First National City Bank; Tom
Ladenburg, Thalmann A Co.

Co.; E. M. McLaughlin, Paine, Webber, Jackson A Curtis;

Carrington, Ira Haupt A Co.; N. P. Rogers, Adams A

Hinkley (Newark)

Hornblower A Weeks (Philadelphia); Alan N. Weeden, Weed en A Co., Inc.;
Viide, L. F. Rothschild A Co.; Coleman B. McGovern, Jr., First National City Bank;

Schmidt,

Chester W.

D.




Ted Dilger,

Weeden A Co.

Ackerland,

Donald Breen, Glore,

M. Durkin, First National Bank

Weedon A Co., Inc.;
Dodge A Co.;

of Chicago (New York)

Roger S. Phelps, Phelps,

Fenn A Co.; Harry W.

Estabrook

Youngdahl,

A Co.

Forgan A Co.; Theodore F\ Swich, White, Weld A Co.; Edwin
Blair A Co., Incorporated; Wilson D. Lee, Rand A Co.

A. Bueltman,

G. Laemmel, Chemical Corn Exchange Bank; A. W.
Phelps, Phelps, Fenn A Co.; Wendell R. Erickson, Stone A Webster Securities Corporation

W. Murray Lee, Hannahs, Ballin A Lee; William

2

The Commercial and

PICTORIAL

26th Annual Field

Richard G. Murphy,

B. J. Van Ingen & Co., Inc.;

Arthur Tresch, A. E. Masten & Co. (Pittsburgh);

Carnot W. Evans, Clark,

Edward H. Robinson,
Leonard

Burt

T.

&

Lynch;

Dorge & Co.

Schwabacher & Co.; John Cowie, Moore,
C. M. Osborne, C. M. Osborne & Co.

James

J.

(Toledo); Leo L. Quist, Harold E. Wood & Co. (St Paul);
Kidder, Peabody <£ Co.; Charles L. Skinner, Coffin & Burr, Incorporated

Brainerd H. Whitbeck, First Boston Corporation; Henry Harris, Goldman, Sachs

Jr., Courts & Co. (New York);




Lloyd B. Hatcher, White, Weld & Co.;
Bank of Chicago (Chicago)

First National

& Co.; Roy D. Neal,
Harold Schluter,

.

.

.

Thursday, June 18, 1959

Day

Monroe V. Poole, George B. Gibbons & Co.; Leonard S. Allen, Chemical Corn Exchange Bank;
George R. Waldman, Mercantile Trust Company (New York); Robert Krumm, W. H. Morton & Co.

Ryan, Park, Ryan, Inc.; Frank B. Sisk, Salomon Bros &
Hutzler; Henry G. Hull, Harry Downs & Co.

Ryan, Ryan, Sutherland & Co.

F. P. Gallagher,

Financial Chronicle

J. B. Sanford,

Robert

E.

Hamilton, Laidlaw & Co.; William

McKay, Blue List

Publishing Co.; Robert E. Brindley, Wallace, Gzruldsen & Co.

Jr., White, Hattier & Sanford (New Orleans); Edwin
Ludwell A. Strader,

Strader £ Co. Incorporated

J. Michel, Blyth & Co., Inc.;

(Lynchburg, Va.)

Joseph B. Wise, J. A. Hogle & Co.; G. Philip Whitman, American Securities Corporation; Rollin C.
Bush, First National City Bank; Victor H. Zahner, Zahner & Company, (Kansas City, Mo.);
Edwin J. Cross, Roosevelt & Cross

Volume

189

Number

5856

The Commercial and Financial Chronicle

PICTORIAL

3

Friday, June 12, 1959

David C.

Kratzer, Stein Bros. A Boyce (Baltimore): Robert J. Doty, Andrews A Wells; Arthur E.
Kirtley, First Boston Corporation (Chicago); William H.
Watterson, Fahey, Clark A Co.
(Cleveland, Ohio); Henry J. Krug, Jr., Mercantile-Safe Deposit and Trust
Company (Baltimore)

H. A.
A

Ascher, Wm. E. Pollock A Co.; William Kondratuk, Reynolds
Co.; Charles S. Garland, Jr., Alex. Brown A Son (Baltimore)

Bianchetti, J. A. Hogle A Co.; John H. Gertler, Barr Brothers A Co.;
Lehman Brothers; James
Robertson, Shearson, Hammil A Co,

Murray, Drake A Company; Tom McCormick, Phelps, Fenn A Co.; Dick Shanley,
Equitable Securities Corporation; Frank Noonan, Eastman Dillon, Union Securities A Co.

Harvey S. Renton, Jr., Freeman A Company; R. E. Crooks, Ferris A Co. (Washington, D. C.);
Charles J. Martin, Folger, Nolan, Fleming-W. B. Hibbs A
Co., Inc. (Washington, D. C.)
Arthur S. Friend, Folger, Nolan,
Fleming-W. B. Hibbs A Co., Inc. (Washington, D. C.);
William Travers, Francis I. du Pont A Co.

Karl

J.

Panke,

>

Harry W. Faath, Jr., Marine Trust Company of Western New
(New York) Frank L. Lucke, Laidlaw A Co.

Charles W.




Alfred

York

Rene

Foerster, Goldman, Sachs A
A

Financial

Co.;

Edwin

L.

Beck,

Commercial

Chronicle

Frank
G.

Lynch, Blair A Co., Incorporated; Ken Moir, Arthurs, Lestrange A Co.
(Pittsburgh); Charles
Peelor, Arthurs, Lestrange A Co. (Pittsburgh); Charles V. Thackara, Shearson, Hammill A Co.

(Seated)

Thomas A. Lankford, Union Trust Company (Baltimore); William Ferguson, Northern Trust
Company (New York); Edwin P. Sunderland, John C. Legg A Company (Baltimore); (Standing)
Walter Friend, R. W. Pressprich A Co.; G. Carl Jordan,
Jr., R. W. Pressprich A Co. (Boston);
James D. Topping, J. D. Topping A Co.

The Commercial and
4

PICTORIAL

Bill Veazie, Mabon & Co.; Tom Carter, Loewi & Co.
Sons (St- Louis); Jack Clark, Wachovia

Edwards &

Incorporated, (Milwaukee); Richard Morey, A. G.
Bank & Trust Company (Winston-Salem, N. C.)

Bill

Financial Chronicle

Hibberd, Trust Company of Georgia (New York);
Glenn Thompson, Carl M. Loeb, Rhoades & Co.;

.

.

.

Thursday, June 18, 1959

Bill Mears, Chemical Corn Exchange Bank;
John V. Hollan, Barr Brothers A Co-

*

Gene

A.

Frantz,

Frantz,

Hutchinson & Co.

(Chicago); George
T. Burke,

Russell A.

Barnett, First National City Bank; William
Bacon, Stevenson & Co.

Bob

Dick

A

Blake, 'Philadelphia National Bank (Philadelphia); A1 Harris, The Bond
Deegan, L. F. Rothschild A Co.; R. W. Ellwood, R. W. Ellwood &

Haff, Joseph, Mellen A Miller, Inc.; George H. Brooks,
Merle-Smith; Philip M. Hiss, First National Bank
of Chicago (New York)
\

Buyer; William
Co.

P.

John

J.

Joseph B. Wise, J. A. Hogle A Co.; Constantin G. Alio, A. Webster
Dougherty A Co. (Philadelphia); G. Powell Davis, Investment
Corporation of Norfolk (Norfolk, Va.)

Ward, Chase Manhattan Bank; David E. Ahearn, Hornblower & Weeks; William
Reynolds & Co.; Floyd F. Stansberry, Bankers Trust Company

A. Devlin,

mmm mt

John F. Hoffman,

Reynolds & Co.; James M. Heller, Shearson, Hammill A Co.

Richard K. Buechler, E. F. Hutton A Company




David

A.

Pincus, D. A. Pincus A Co.; Lawrence W. Lembo, Glickenhaus A Lembo