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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 Purepac Corporation V Sold offering, free all Lists ... LAKE STOCK on stocks 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 will receive latest quotation sheets CROMER BROKERAGE Stock Exchange ing at the Royal on request, ing and non-operating companies and those with oil and on of convention. (Toronto, First Board of Governors the the newly-published Summary all Transactions of the Salt Lake Stock Exchange for 1958. are dividend and Prospectus day, Friday, Sept. 23-25, 1959 (Milwaukee, Wis.) National Association of Bank Draper Dobie and West, Toronto, Ont., 77v«' '• .-'7 7-;> "• FXR, Inc. Bought ; Club. Wheeling Steel Corporation—Analysis—Schweickart & Co., 29; Broadway, New York 6, N. Y. City Club; field Kenwood Country day at Queen ; Broadway, New York 4, N. Y. United Keno Ilill Mines Ltd. (Cincinnati, Ohio) Municipal Bond Dealers Group of Cincinnati annual outing — cocktail and dinner party Thurs¬ on COMPANY, Inc. meet¬ York Hotel. Life Insurance Stock Holding Company Summary report Reinsurance Owns available on Investment Corp. 51% of the ' ■ outstanding stock of LOYAL AMERICAN LIFE FIRST INVESTMENT ' 74 Trinity Place, New York 6, N. Y. HAnover 2-2400 - - Member Salt Lake Stock Exchange . Suite 3 Teletype NY 1-376; 377; 378 39 & 4, Salt Lake Stock Exchange Bldg. Exchange Place, Salt Lake City, Utah SAVINGS CORP. 404-No. 21st St., FAirfax 2-0585 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