The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
'he COMMERCIAL and FINANCIAL
fJ
.
•
C)
\
-
*** * *
*
■
ct
ch^'d
Reg. U. S. Pat Office
|STABLISHED 1839
Volume
New York 7, N.
Number 5956
191
AS WE SEE IT
■Mcid
both Federal and the
other governments in the
$299 billion, which is some
[$15 billion higher than at the end of 1958. Private bor¬
[country ended the
year at
reach the total of nearly
record increase in any single year. Sub¬
rowing rose some $51 billion to
[$548 billion, a
for nearly all types of pri¬
vate borrowers, both business and consumer. The time
'has evidently again arrived when we should do well to
(pause long enough to ponder the significance and the
potentials of the debt that is piling up at such a rate.
There are doubtless many left among us who recall
the controversy, rather pointless and futile, in the earlier
days of the New Deal about how much national debt we
stantial increases are shown
At the time the net Federal debt stood
could "stand/'
at around
lowers
$40 billion. There
Franklin
of
those among the fol¬
were
Roosevelt
said
who
there
no
was
Federal Gov¬
limit to the amount of indebtedness of the
American people.
It was all debt, so they said, that we "owed one another"
and hence was not a particularly serious matter how
large it became. Of course, that was in peacetime. Soon
World War II was upon usand the net indebtedness of
ernment that could be
the national
"stood" by the
We
"stood" these staggering amounts of debt and survived—
but we had to accept a 110 % rise in wholesale prices and
a
100% rise in the cost of living, or at least we did
government rose to over $252 billion.
There has been
we,
talk
no
revival,
the
about
so
far
Executive
President's budget
of
know, of the
total amount of debt that
either government or private,
liberal's
the
"miracle
(Continued
on page
28)
than
admittedly glamorous appeal
theory of public spending as the
without economic soundness,
Mr. Stans warns against
of
formula
where
we
"growth without illusions."
future
America's
As an example of
heading, he totals our Federal mortgage on
are
as
billion
$750
defensive
which
government has been on the
it has almost gone out of
the
This, I think, is the wrong view. As Repre¬
Graham Barden put it recently, "If it
were
not for us conservatives,
/
what would the liberals have
left to be liberal with?" There,
sentative
a
not when the Government
whole
disagreement here regarding the Nation's basic
Everyone recognizes that the goal is
economic growth as a means to higher living stand¬
ards. But there is a great difference of opinion as
objectives.
»
of the fiscal conservative shows
clinging to the present,
unwilling to venture or to risk
the unknown. By contrast, the
so-called
"liberal" in fiscal
matters is sketched as the em¬
him
bodiment
to
ing
a
of
enterprise,
is
a
to how to get it.
Our
the
better,
the glamour on
Maurice
H.
Stans
with all
;
of
has
their demands
and
as
a
means
stampede public opinion.
istration's
the side of the liberal. But it is not
over
concern
fiscal soundness
as
for¬
a
mula for economic
stagnation. They are preaching
the
miracle
theory of public spending as the
panacea for growth. The
(Continued on page 30)
The one who is conservative
about money matters has visions, too, but they are
tinged with realism, and there lies a profound dis¬
simple.
really that
advocates
r
been made an issue by
massive public
spending as a
rate
They are attempting
to hypnotize the country into blindly following the
cult of growth, without inhibitions about balanced
budgets or big debts or inflation. At the same time
they are doing their best to stigmatize the admin¬
to
striv¬
fellow man.
stark contrast,
growth
rationalization for
his bonds and
brighter world
escape
vividly brought out by the current
growth. Now, there can be
are
no
caricature
conventional
afford it.
discussion of economic
speech, and perhaps I
ought to leave it at that.
The
can
Conservatism and Growth
The issues
single eloquent question, is
a
represent short-run expediency, opportunism
use
of tax dollars, and irresponsibility in
playing Russian roulette with inflation. Fiscal cau¬
by well-trained and resourceful
pressure-groups which are out to get from Gov¬
ernment what they want when they want it, and
style.
in
due.
tion is confronted
long that
so
come
Ranged against them are all the, powerful forces
in
Fiscal conservatism in
in endurance.
the hereafter when the bills will
without including built-in
spending bills.
increases in existing
What he lacks in glamour, he more
makes up
today than at any time in the past of the conse-f
quences of push-button budgeting, an increasing
reluctance to face the morning-after hangover of
the spending binge, and a respectful concern as to
conservative's
Destruction" and spells out the
wants to
parties, with the fiscal predicament of the Federal
Government.
There
is a
greater understanding '
our
domestic enemies which he describes as the "Four Horsemen
of Economic
where he
only knows
Today there is growing concern among thought¬
ful elements in our society, and in both political
for growth." In pointing out no nation can be great
panacea
not
responsibility.
expert presents a vigorous case for fiscal
an
He
but where he stands now. He recognizes no
incompatibility between idealism and a sense of
go,
Office of the President, W ashington, D.C.
conservation in rebuttal to
It
as we
tinction.
By Maurice H. Stans,* Director of the Bureau of the Budget
for himself and his
What We Can Stand
rather inane
Copy
a
For Growth Without Illusions
v
seek
I'
accept them.
Cents
50
This Is the Conservative Formula
'he Department of Commerce has just issued figures
Indicating that by the, end of 1959 the total of both
oublic and private debt in this country had reached the
total of $846 billion on a net basis, that is with certain
duplications eliminated. The increase during the year
if some $67 billion is said to be higher than has ever
>een recorded in this country in a single year. Net public
Jebt of
Price
Y., Thursday, June 2, 1960
Underwriters and distributors of
REGISTRATION—Underwriters, dealers and investors in corporate
securities are afforded a complete picture of issues now registered with the SEC and poten¬
tial undertakings in our "Securities in Registration" Section, starting on page 34.
SECURITIES NOW IN
U. S.
STATE, MUNICIPAL AND
*
PUBLIC HOUSING AGENCY
BONDS
Government,
NOTES
AND
Dealers in and Distributors
Public
State and
Housing,
Municipal
of Securities of
UNDERWRITERS
Banks for
Members Pacific
t
RAILROAD
PUBLIC
chemical bank
new york
MEMBERS NEW
/
15 BROAD
CABLE:
YORK AND
STREET, NEW YORK 5,
COBURNHAM
EXCHANGES
• Dl 4-1400
TELrTYRB NY 1-22S2
N.Y.
T. l.watson &Co.
ESTABLISHED 1832
Banks and Brokers
25
Exchange
Southern
—
BANK
Pershing & Co.
HAnover 2-6000
ROYAL BANK
OF CANADA
Rights
We
offer
to
buy
the
above
rights
which expire on June 27, 1960 at
the current market.
Direct Private
On All
Wires
to
i
Montreal, Winnipeg, Calgary,
Vancouver, Victoria and Halifax
CANADIAN DEPARTMENT
Stock
STREET
BROAD
NEW YORK
4, N. Y.
DIRECT WIRES TO
Toronto,
DoMimoN Securities
1-2270
MONTREAL AND TORONTO
Goodbody a
Co.
•
PERTH AMBOY
1 NORTH LA SALLE ST.
NEW YORK
CHICAGO
%■
MunicipalBonds
FOR COMMUNITY
PROTECTION
MUNICIPAL BOND
Grporatioix
Associate Member American
MEMBERS NEW YORK STOCK EXCHANGE
2 BROADWAY
BRIDGEPORT
on
Correspondent
THE
Invited
Stock Exchange
York
,
canadian
securities
Commission Orders Executed
Canadian Exchanges
'**
Chase Manhattan
California Securities
New
Markets Maintained
Teletype NY
V.
THE
Santa Monica, Whittier
Inquiries Invited
Teletype: NY 1-708
Block Inquiries
Members
Development (World Bank)
/
Bond Dept.
To Dealers,
American
and
International Bank for Reconstruction
OF NEW YORK
Net Active
New York
del Mar,
Riverside, San Diego, Santa Ana,
Company
AMERICAN STOCK
Marine Bonds
and
THE FIRST NATIONAL CITY BANK
Burnham and
Corona
Association
Merchant
United States Government Insured
Coa^t Exchange
Claremont,
Cooperatives
Federal National Mortgage
Exchange
Oceanside, Pasadena, Pomona, Redlands,
SECURITIES
30 Broad Street
in
-
Encino, Glendale, Hollywood, Long Beach,
trust company
New York 15
Offices
UTILITY
FOREIGN
&.
Exchange-
Associate Member American Stock
INDUSTRIAL
HAnover 2-3700
BOND DEPARTMENT
Federal Home Loan Banks
California
Members New York Stock
telephone:
Federal Intermediate Credit Banks
Hope Street, Los Angeles 17,
623 So.
DEALERS
Securities
Federal Land Banks
Lester, Ryons & Co.
and
BROKERS
40
Stock Exchange
Exchange Place, New York 5, N. Y.
Tel. WHitehall 4-8161
Tele. NY 1-702-3
Bank
of
DEPARTMENT
America
N. T. & 8. A.
San Francisco
Los Angeles
(2362)
If it's Over-the-Counter
I Like Best...
The Security
Dealers only
For Banks, Brokers,
You
be
can
Dayton. Ohio
Speed
Vapor Heating Corporation
Experience
There
in
unique satisfaction
a
about good investments
strong potentials which are
generally known to the in¬
vesting public.
writing
with
not
Primary Markets in
more
I
Issues
than 400 OTC
is
that
times
and it is
Established
I
BOSTON
•
Wires
in¬
to
Principal Cities
which
but
vestors
has
Herbert
Harris
E.
a
my
future.
in
Back
Opportunities Unlimited
IN JAPAN
«0«
Write for
^
&
His Nomura Securities Co., Ltd
—
"
-•
i 11
61 Broadway, New York
6, N.Y.
Telephones BOwling Green 94)187
not
offer
an
orders for any
or
solicitation for
one
associated
industries it serves
foreign coun¬
tries
are:
aviation,
buses
and
trucks,
chemical
processing,
marine, oil and gas, and railroads;
Its business is excellently diver¬
sified
in
and
served
areas
Every
railroad
the
in
States and Canada and
foreign countries
Union
the
are
in
customers.
Pacific
built
a
when
on
it
is
dark
and
automatically turns it off in day¬
light. It can, however, be set to
Philadelphia 2, Pa
shut
off
current
determined
switch. Its
and
at
any
varied
Two
but
such
and
also
will
—
and
CALLS
Richard
Whiting? Packed with ac¬
trading methods for utilizing the
'unlimited
profit
on
the
upside
—
strictly limited loss on the downside'
tual
Calls,
no
interested
in
profits
in both
AND declining markets can
afford to miss this book. The
$5 cost
is immediately returnable if this book's
advancing
not
this
stock
market,
a
prove
complete
to
little
itself.
and
known
send
$5
For
your
invaluable
area
to
of
'Puts
the
&
Calls', R. H. M. Associates,
Dept. FC-100
220 Fifth Avenue, New
York 1, N. Y.,
• folder.
or send for free descriptive
in
D.
feel
I
has
that mark
of
Sutton
with
is
Call
of
Yamaichi
Securities
of New
Chemical
Canadian
Limited
cell
is
relatively
the
from
output
the
of
than
achieved
been
small
Affiliate
111
Co., Ltd.
Tokyo, Japan
&
Investment Bankers
Broadway,N.Y.6 COrtlandt7-5680
LAMB0RN & CO., Inc.
99
STREET
WALL
NEW
YORK
5, N. Y.
4
indication
achieved
success
products
the
that
fact
be
can
this
in
up¬
year
ap¬
proximately
during the last three years.
As a result, the company's sales
last year rose well above its break¬
will be of
28%
new
total
of
SUGAR
derived
sales
Raw
-—
Refined
—
Liquid
products introduced
which in turn is a even point of approximately $20
controlled subsidiary of million to reach $26.3 million,
Celanese Corporation of America while net profit per share, which
administering most of Celanese's in 1958 was only 120, rose sharply
foreign companies. Canadian to 660.
Limited,
wholly
of
Yamaichi Securities
~
of
outlays
Some
features
the verge
subsidiary of Chem-
a
Company
York, Inc.
produce,
some cases more
having
grading
"break-out."
a
write
position
a
Company
company on
information
or
'
which
one
of the
many
a
The
late.
like to discuss
article
this short
in
was
additional funds.
should
Exports—Imports—Futures
DIgby 4-2727
.
for
as
is
electric
control
real
able and
aggressive;
its
ex¬
research
is
capable and
has contributed
contribute
pro¬
and
substantially
outstanding
to
success.
In the first quarter of this year
sales increased to $6,390,000, up
14%;
consolidated
earnings
in¬
to
$665,000,
up
24%.
Profits
1959
were
for
adversely affected in
substantial
by
research
field
expenses
pected
to
for their
which
$2.16
a
expenditures
and
introductory
which
more
can
than
Chemical
has
chemical
plant
be
ex¬
compensate
penalty to 1959 earnings
$2.38 compared with
share in 1958.
were
fully
a
Edmonton,
near
cess
ever,
petroleum gasses which
as by-products
from
obtained
are
petroleum
production
products
fibre
flake,
proc¬
British
Cellulose
Columbia.
products
are
companies
sold
mately
domestically.
fifth
a
acetate is
as
of
total
U.
market.
S.,
where
tenth
a
company
preferred
stock
had
or
no
bank
bonds,
loans
at
the
start
of
1960
and
current
assets were more than three times
(This is under
M
as
a
additional capacity
Demand
also very little in the way of vari¬
costs. The
marginal impact
on
ex¬
duction
com¬
costs
are
low
so
they
—
well be the lowest in the
world—that the company can ship
this product to Europe and sur¬
mount tariff barriers and
with
pany's location behind the Rockies
and
domestic
producers
compete
in
such
more
from the
output is
sold, demand is
growing extremely rapidly. Pro¬
company's operating rev¬
extremely high.
is therefore
(2) Leverage arising from up¬
grading of products. The com¬
pected to grow rapidly in the U. S.
"penta" in the future, but in
Europe and other overseas mar¬
pany's
the
enue
for
kets, where the bulk of the
,
than
circumstances
solicitation of
an
offer
to
to
be construed
buy,
any
as an
offer
security referred
ft
to
to
sell,
or
herein.)
a
thousand
miles
major Canadian markets
in the
east, necessitates a rela¬
tively, high transportation cost. On
a
low value product, this can be
a
particularly heavy
burden.
By
raising the value of the product,
however, through up-grading this
burden
The
is
reduced
Research
departments
no
only
able
the
is not
will not
very little in the
way
of
additional fixed expenditures, but
it
of
...for you
entail
alkyd resins. Ap¬
the
plant cost $75 million). More¬
a further 40% increase can
Since operations are fully inte¬
grated and highly automatic, this
proximately a quarter of the com¬
pany's output of this product is
to
cost.
subsequently achieved for the
expenditure of another $4 million.
chemicals, the most important
of which is
pentaerythritol, used
primarily as an ingredient in the
roughly
output
be
wide range
of
supplies
in
little
over,
output of the Edmonton plant. The
exported
at
its chemical capacity by 40% at a
of only $4 million (the orig¬
inal
of
expansion
achieved
cost
Acetate products account for ap¬
proximately half of the value of
manufacture
be
years, but the rewards of
this foresight are now being real¬
ized. The company is increasing
ters.
a
expansion.
early
cigarette fil¬
remainder consists of
from
This imposed a burden during the
of
output
Leverage
subsequent
ApproxU
the
tow for
of leverage
.
original
could
Latin
America and Japan, although part
are
used in Canadian operations
and
number
much
higher rate of production
than initially planned in order that
in
acetate
in
a
design incorporated .*
certain auxiliary functions such as
power
capable
of supporting
a
sold for the most part
affiliate
how¬
the future potential that
as
.
(1)
pro¬
Limited,
These
this
suc¬
achieved in recent years,
The
yarn,
pulp
about
much the
me
so
factors:
chemical
acetate
using
is not
arises from
Al¬
by the company's affiliate,
Columbia
to
also
and
and
duced
are
variety of
a
the
of
These
fields.
interests
company
liquified
may
The
What
integrated
Alberta utilizing as raw materials
into
creased
does
G.
by
I
in
was
increase
that time it may be too
situation
essed
factors for
success
the company's
PROFITABLE TRADING IN
of
but
timer
mercury
necessary
department
gressive. It
guide
depart¬
50% above designed capacity, this
able
reason
doubt,
it
the
though
plant
beyond
en
Last year,
even
trend is prov-
broad
Heating has both: its management
only able and experienced
copy
current
has had conspicuous suc¬
company
in
a
is not
value
For
was
on
to sell more than it could
this
until
change
concentrated
were
cess.
pre-
oil
perienced
management
and
a
good research organization. Vapor
and
may
berta
planes. Some of these indispensa¬
ble products have been developed
in cooperation with
government
engineers at Wright Field.
industrial
Investor
plant
company
up-grading products wherever
possible. In all three phases, the
fer to wait
are
time
by
applications
electronic
Puts
1951, the
the efforts of the research
ana¬
pre¬
systems for jets, missiles and air¬
•<0UR It/Of.
of
lyst
here and in several
signs, flood lighted areas, munici¬
pal lighting systems, etc.
Another
important product is
characteristics
the
time
the
in
.
New York 6, N. Y.
LO 8-0900
CO 7-1200
ATT Teletype PH 30
by
cautious
the
Among
Among recent developments is
photo
electric
timer
switch
which automatically turns electric
1914
PUTS
From
built
most
the
The
better.
sub¬
a
1529 Walnut Street
Have You Read
been
record
the
company
diversified
division
and
an
company
(Canadian).
sidiaries,
current
Broadway
parent
six
Motive Division of General Motors.
B0ENNIN6 & CO.
115
the
until
has
»5arge customers include Kroger
Co., Royal Dutch Petroleum Corp.,
Whirlpool
Corp.,
and
Electro-
Keyes Fibre Co.
i
It
over
boilers to handle the work. Other
Corp.
STOCKS
creasing the volume of output and
systems.
large laundry in Ogden, Utah,
Vapor Heating Corp. was dele¬
gated to construct seven large
Richardson Co.
■
changes mark¬
edly for the
25
Fischer & Porter Inc.
Established
was
that
said
,*
has
the
heating
When
Stouffer
company
a
Company Limited
•:
United
Interest in
JAPANESE
produced
by
Celanese
Corporation of America. The lat¬
ter accounts for only around 5%
plastics
Brokers
products.
particular securities
A Continuing
Exchange,
in¬
now
branch offices
our
other
and
cellulose
ment
years
to
also
while the company
Canada,
suddenly
our
-•
1904
developed and expanded
Monthly Stock
D ^est, and our other reports
fcbat give you a pretty clear
picture of the Japanese ^
economy as a whole. '
are
formed to engineer and manufac¬
ture
NY 1-1557
Birmingham, Ala
Mobile, Ala.
Direct wires
methanol and for¬
marketed
largely in
went
difficult thing in investment anal-, through a long and difficult pe¬
in
which
ysis is to discover a company riod *of development
with
an
unspectacular earnings losses were larger and more fre¬
record at ap¬
quent than profits. Emphasis was
placed on developing markets by
proximately
the point of
building up a world-wide sales
time
where
organization, while at the plant
has
It
and successful history and,
judgment, an even greater
long
in
tf
not well
pany
SAN FRANCISCO
to
Canadian Chemical
com¬
a
known
CHICAGO
•
PHILADELPHIA
Private
select
New York 5
New Orleans, La. -
of sales.
judgment.
Once again
I
Teletype NY 1-40
WOrth 4-2300
malin
Stock Exchange
confirmed
my
Exchange
American Stock
120 Broadway,
-•
'
has
1920
Associate Member
such
„
butyl alcohol,
Exchange and Canadian
Toronto Stock
United Kingdom
Germany. Other
as
acetone, iso-
distributes
Stock
Montreal
Members:
Best"
Like
the
as
chemicals
Montreal, Canada
each "Security
Corporation
A
Members New York Stock Exchange
HAnover 2-0700
that
isfaction
-
»
Western
countries
Nesbitt, Thomson & Company, Limited
sat¬
a
>
•
Daiiop D
Stock
Exchange
19 Rector St., New York 6, N. Y.
G. D.SUTTON
/ Manager, Research Department
in this column
'*
Cvmim
ually
on
and
are
considerably.
Development
therefore contin¬
the lookout for opportu-
Continued
on
page
"
MlEINERf HOUSE & vO.
Members American
and
•
New York Hanseatic
(Page 2)
investment.
long-term
unique
several
Manager,
Sutton,
opinion this is an excellent invest¬
ment
for
those
seeking above
tisfaction
sa
Bought—S old—Q uoted
Ltd.—G.
Co.,
Research
Department, Nesbitt, Thomson
& Co., Ltd., Montreal, Canada.
D.
most of the 775,000
closely held. In my
are
Chemical
Canadian
short supply as
shares
Louisiana Securities
E.
Day¬
ton, Ohio. (Page 2)
$1,000,000 more
than
a
year
ago
and business
continues most satisfactory. This
is an over-the-counter stock
in
average
had
have
orders
Back
Thursday, June 2, 1960
Alabama &
Heating Corp.—Herbert
Vapor
$5,100,000;
were
Nationwide Wire System
particular security.
liabilities.
current
HERBERT E. HARRIS
Securities Dealer,
.
Participants and
Selections
Harris, Securities Dealer,
of
sure
.
Their
field from all sections of the country
participate and give their reasons for favoring a
Call "HANSEAT1C"
.
Week's
This
Forum
each week, a different group of experts
A continuous forum in which,
...
in the investment and advisory
This is
Financial Chronicle
The Commercial and
2
16
N.Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
20-Year Performance
35 Industrial
FOLDER
ON
of
Stocks
REQUEST
National Quotation Bureau
Incorporated
46 Front Street
New York
4, H. Y.
Number 5956
191
Volume
.
.
The Commercial
.
and
Financial Chronicle
(2363)
No Longer Can We Select
A Calculated Safe Risk
Sir
By
Geoffrey
CONTENTS
AND
Articles and News
thesis that one of the prime motivational decisionmethods—i. e., the policy of the "calculated risk"—is now
making
I
factor, In fact, he adds, to choose
middle
a
*
willing to give up defense and capital spending in order to
we
level? Can we hang back, whether we like it
or not, from helping underdeveloped countries? And can we run the
risk of not trusting the Russians enough? The author's answer to
these appalling choices is that if we have to gamble on something we
should where we can "gamble on the enlargement of the human spirit."
V
.
sounds.
-
J how
cial
be-.
at-
one
the
r v;
•'
r
P*
,
the
.spepds
h
'
o
learning m.ore
Geof.
Sir
is
less
and
less
would
about
Sir,
I,
more.
who
; man
a
an
av—T.
;
_
9
acoustica
of Eras This Time
......1
associates
10
F.
american intl.
Patton___________„__
12
bowling
■/
Attractiveness of Bonds in the Cold
having
13
crown aluminum
The American Depositary Receipt
accident. :In;; the
an
Colder War
or
—Roger W. Babson
a car,
v
—Edward Marcus.
.
for Foreign Equities
14
___
lafayette radio
New Horizons for Steel
,
V-
..^Benjamin
F.
and How to Reach Them
Fairless
:____
18
and
amateur.
-make
to
Removing the Danger to Our Future Industrial Growth
v
Joel
don t
I
Now
I ;
__:____l__
*
•*
_____ji_
;_
v"
.■"v*r.- ;
.
22
J.F.Reilly&Co.,Inc.
'/
196ol_i___
39
Broadway, New York 5
31
DIgby 4-4970
.
Regular Features
As We
See It
human affairs were ever like that
a
___!
Purchasing Agents Bullish About Second Half of
know ^whether
-
Hunter
♦
do that would make you reason¬
ably safe.:J
'
-
learns
more
an
am
venture
not
-
less,> while
and
less
amateur
Crowther
W-r
moreK,
about
baird-atomic, inc.
Table of Communication to Get Public
Understanding
;
case the question was, How.
much of a defined risk is it worth
eliminating at what -cost m.ktime
or money or men? ': And if you
were smart enough, you could dp
the calculation, and feet- safe,,, intaking a calculated -risk.. There
was always something you could
bis' ifi®;
and
Worthington_:
—Elliott V, Bell...
v.:
old.each
w
n
a
B.
of Western" Europe collapsing. In
jest' - that a
expert ':-is,';
m
7
Successfully Accomplishing A Change
it is the desire to get /
home quickly against, the danger
sort.
call
—Leslie
•
.
'*Marshall Plan, it.was the need to
tempting to
MihjfHfc *
keep American taxes downdo anything of/r
against the risk of the economy,
in
comes
Dept.
STREET, NEW YORK
»
,
f
a
4
____
Can't Keep On Selling the Same Steel
Products
it has there is
life «||^B ing
And
"I" 1 ri
"
-
"
v
>
twenty
in a position where
my duty to keep in
99 WALL
3
—Frederick W. Page
v
that, in matters of public policy,,
a simple antithesis of
been
touch danger and desire, a simple calcuwith the economic and political lus of a defined ~ risk. In building
affairs of the. -: a
a bridge, it is the conflict between
whole world.'MHKIiFllSII
the desire to buUd it as cheaply
How grandil-t:
as possible and the need to make
'Oquent th a
sure it won't fall down. In driv-.
than
spent more
^0
years
Obsolete Securities
A
Investment Merits and Utility Common Stocks
..
.
A
•
v;
rising price
avoid
V
_________
Tobacco Road to Profits—Ira U.
Cobleigh
countries and in trusting Soviet Russia, the editor;asksi
poor
Geoffrey Crowther.
make
can
Telephone: WHitehall 4-6551
•
well known
are
t
—Sir
we
high bid.
Cover
No Longer Can We Select A Calculated Safe Risk
<
that obsolete.
you
Perhaps
Illusions—Maurice H. Stans
course
hot be the safe thing to do. Taking three dilemmatiis examples,
risks of price inflation, in aid to underdeveloped
may
the
A TALL STORY
page
sold
The well known London economics editor finds we now
must choose between dangers, all of them enormous and incalculable,
for no longer is it possible to select a risk which provides a reason- V
safety
'
This Is the Conservative Formula for Growth
Without
-
>■
passe.
able
COMPANY
"
Sir Geoffrey's
It js
LlCHTEnSTCIIl
B.S.
Crowther*
Manager, Director of the London "Economist"
3
specific '.statement aboutv hardly ;Iv think perhaps they •were. Rut
anything.. On the other handy .1 .not now; In so many, of our public
Bank
;
~
(Editorial)
and Insurance
__A
-Cover
::___
Stocks
ElcoCorp.
:
29
.
seasoned^-practitioner of affairs-today,^ it is not/a simple
sweeping
generalisations.*
And calculus of risk against cost, of
there is one particular general re-. .danger against desire,/but a much
flection about the world's affairs
more
complex and incalculable
that * I want to
discuss
in
this
affair. We can t nowadays ,decide
am
a
Businessman's
f
Bookshelf
Jamesbury
48
.
.
;
paper.
-
:
;
.
We used
to
how much of a risk it is safe to
take. In so many instances alk we
,
hear
a
deal
great
a
vye used ,to near a great deal a
few years ago.about the policy of
the "calculated
risk."
I
always
thought it sounded
sive.
It
human
sounded
affairs.
very
like
It
an
we
we
impres¬
applica-
conjured
up
is
do
can ao »
two
choose
to
o
wili .take,
or
more
the
a
a
an alert figure in rim¬
glasses, fingering a slide rule
writing a few equations on a
freedom
.'■
Dealer-Broker Investment Recommendations.
/
Einzig: "The Forward Dollar Puzzle"
now
exactly how far it
in
providing
was
defense
safe
to go
Risk
conciliating the Russians, or
raising wage rates or extending
credit, or whatever else the problem might be. It was like building a bridge. You calculated the
risk of its
falling down, you added
;
calculated safety factor and you
knew exactly how much steel to
put into it. Or, to take another
just how fast it is safe
risk
corner—the
skidding against the
desirability of getting there quickly,
The
idea
trine
of
lying
the
behind
calculated
this
Utility
Securities
^
Prospective
and
...
Corner
32
You—By Wallace Streete__________^____
17
The Security I Like Best__
NEED "HARD TO FIND"
QUOTATIONS?
2
•,
The State of Trade and Industry.—
5
i_^
YOU WILL FIND THEM
V
Tax-Exempt Bond Market—Donald D. Mackey
'
V
.
,
.
*
■
-
*r
*
;
t
.,
''
■
'
1
'J
i
:
6
IN
■
Washington and You—
Bank & Quotation
48
Record
Continued on page
The
Twice Weekly
Copyright 1960 by William B. Dana
(Only $45
Company
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—
Our Reporter on Governments
■
request,
mackie,
&
24
May
on
.
was
For many
years we
Wilfred
* Prospectus
(
.
doc-
risk
Observations—A.
-
Mos^ ?f as are x?nSCi°we Irwrisk of inflation. Never has a ything been more vigorously publicized. We all know—and]1 am
not being in the least iron c-^
all know that inflaJ10^ivcoa1^. rt7
away the fabric of our
y.
It breeds arbitrary .inJns
undermines the basis
business judgment by Pe"ai\z.ing
thrift and rewarding sp
'
it is the friend of all the predatory elements in/ke community
and the enemy of the sober Inflation has the sa™f
the social Jpd econom
that narcotic drugs hav
__;
News About Banks and Bankers
I
Inflation
..
example, it was like the calculated risks that
every one of us
takes every time we drive a car
a
No
.
a
to drive round
of
of
25
Funds
r
singer,bean
46
Mutual
to
armaments,
or
and decide
try
„
Bargeron____ 13
Indications of Current Business Activity
.
Illustrate what I
mean
or
by three examples drawn
blackboard and coming up with from problems of the present day
a
precise
and
accurate
answer
and I will start with one thai
which would enable you to know
is purely economic.
will
Columbus Electronics
24
j
■
like
I
8
______:
From Washington Ahead of the News—Carlisle
■v
The
looks
luxury of bygone days.
less
Superior Electric*
:
between
incalculable.
^culated/Risk
Howard Sam
8
froodom
dangers, all of them
and
enormous
picture of
only
Coming Events in the Investment Field
risk
which
choose
to
is
"have
'
.
.
:
New York 7, N. Y.
REctor 2-9570
.
4
Financial Chronicle
The Commercial and
(2364)
brands, Chesterfield regular ciga¬
Tobacco Road to Profits
in
been
Chesterfield.
The
L
Thursday, June 2, 1960
.
MAY
WILFRED
A.
BY
filter
M
&
.
OBSERVATIONS...
moderate
a
decline, partially offset by
aggressive selling of the king-size
sales
Economist
By Dr. Ira U. Cobleigh, Enterprise
have
rettes
.
brand has moved ahead
equities
capsuled presentation of the durable values offered by
of leading tobacco companies.
A
well, and
filter, re¬
mentholated
Oasis,
a
corded
a
57 % gain last year.
MR. ROCKEFELLER S
Liggett & Meyers Common at 79
enough
old-fashioned
investors
those
For
tradi¬
such
consider
to
tional investment criteria as book
current assets, sustained
earning power, decades of depend¬
able
cash
dividends, reasonable
values,
(not astronomical) price/earnings
ratios
and
rewarding yields, a
look
leading tobacco shares is
at
currently recommended.
At
time when steels are sag¬
a
ging, oils are soggy, motor cars
(and earnings) are getting com¬
pact, drugs are being Kefauvered,
and paper companies are coping
with
competition
arising from
some
over - capacity,
cigarette
smoking is on the increase, and
leading tobacco companies in 1960
rack
will
results in
the best
up
long and honorable history.
their
particularly when you are
premium for high
So,
the leading
menthol filter (over 28 billion).
stocks deserve attention.
The over-all statistics are inter¬
1959 year-end, Reynolds
magnificent cash position,
$478 million in net current assets.
Reynolds has consistently led the
industry
in profit margins and
reached a new high in that de¬
health, a fact that has
kept Camel on top for years.
It
spent $25% million in capital im¬
provements last year and will
duplicate that amount, this year.
With its rich cash position it is
definitely interested in diversified
that
For
and per
share net of around $4.85 against
lated
which
now
characteristics.
sive
record
1901.
(since
the
of
taste and flavor rather than on
nico¬
the
dreds
Camel,
a
lion
is
leading
filter)
Gold
than
more
decline
22.8%
in
three
the
categories
offset
(regular,
its
the
of
rate
to
growth
four years.
It
has, however, attained a new mag¬
in
nitude
past
earning
at 37
stock
with
have
Tareyton
been
moving
Tobacco
$2.20 dividend
attractive. The yield is al¬
6%, and shareholders are en¬
Co.
forward.
successfully
so
with
confidence.
pect
a
1960
around
We
would
share
per
of
net
'
Philip Morris, Incorporated
Next
to
Lorillard,
Philip
Mor¬
ris has shown the best recent sales
increases
the majors.
Its
leading brands are filtered Marl¬
boro (20.6 billion units annually),
among
Philip Morris, kings and regulars,
and Parliaments, the elite among
filters.
'
<•/
,
More than
.
others in the indus¬
try, Philip Morris has gone in for
diversification.
In
it
1957,
ac¬
Milprint Co., makers
packaging and, quite
recently, has defined a merger
with A. S. R. Products, producer
the
quired
of
razors
sales
impressive
year
a
sales
new
Due
expected
are
high of
over
to
$1,200
to
54%
with
an
indicated
$2.80, yielding
a
little
5%.
&
Meyers Tobacco
Co.
and
lower, due largely to
merchan¬
of the
same
distribute
ciga¬
many
that
rettes.
Philip Morris Common sells at
around 64 with
indicated divi¬
an
dend of $3.60. Its growth has been
sedulously
and
management
is
work to
improve
at
ex¬
the glamor of
do
look
"space" stocks they
pretty
solid
from
the
standpoints of sustained long-term
growth, rewarding current yields
and sensible
price/earnings ratios.
The principal which will
in trust for her during
her lifetime, with its ultimate dis¬
position subject to her appoint¬
ment, will be subject to tax at her
held
demise.
Meanwhile, of
from
income
that
the
coming
to
philanthropies
will be fully
choosing,
taxed.
.
Thus,
ment's
but
regularly taxwhat is concur¬
or
devoted
her
of
trust,
from
exempt assets
rently
bill
is
the
not
Govern¬
eliminated,
v
To Philanthropy—"Or Else"
A
second
attribute of
the
philanthropist's will is its high¬
lighting of the confinement of
amelioration
of
the
tax
burden
the, wealthy, their charitable
contributions, along with denial of
that glibly and widely voiced fic¬
on
tion to the effect that
through the
strategy it costs wealthy peo¬
ple nothing to make a charitable
gift, or even that the donor ac¬
tax
tually "makes money" by giving it
(including, specifically, works of
art) away.
.
The
Rockefeller
codicil
will's
third
(amendment) provided for
distribution
to
various
charitable
organizations, of anticipated re¬
funds of previously
paid Federal
income
taxes
through
1956.
retroactive
permitted
from
the
under
in
passed
ment,
for
1953
1949
years
Public
This
back
unlimited
current
taxable
North Carolina Natural Gas Co.
1
Law
amend¬
to
1939,
deductions
year
and
8
of
the
Piedmont Natural Gas Co.
Public Service Co. of North Carolina
J919
INCORPORATED
,
Columbia
NEW
YORK
Raleigh
Direct
CHICAGO
Greenville
Wire to All Offices
Jacksonville
,
Operating conversely,, .this col¬
repeats a truth, in the hope
that it will eventually gain more
the
usual
approval.
So
data
current
tuations
lip - seryice in
again exhibit
the typical fluc¬
we
on
individual
of
stocks
those
from
market
technicians
(including the never-say-die Dow
Theorists) to commentators who
keep on assuming the existence
of
a
and
to
"the"
market
trend to
a
to
talk
about,
forecast.
In the interval from Jan. 1, last,
the week ending May 20, the
Jones
Dow
showed
Industrial
Average
of
loss
net
9%; and
Standard & Poor's 500-Composite
Stock Average a net decline of
7%.
a
Yet
of the trading
following week a
goodly number, ranging from 34
to 67, of N. Y. Stock Exchange-
days
of
each
on
the
listed issues actually attained new
highs for the year; with the new
highs outnumbering the new lows
in four of the week's five sessions.
Day's Net
—New 19(>0— '
M
trading Day
Highs
Change in
D.J.I. Avg.
Lows
—0.25 %
34
—0.36
25
34
46
—0.02
the net income for such
year. This
relief provision has been further
26__
67
44
27__
66
54
+0.24
+0.32
May 23__
loosened by an amendment
mitting the averaging of two
secutive taxable years, in
at the 90%—and over
Fifty-nine
per¬
con¬
arriving
tained
highs
Stimulated
amending
wealthy in¬
at¬
the
week.
During this
same
the N.Y.S.E.-listed
Giving
stocks
during
different
allr-time
(705) than
So
much
rose
week, more of
issues declined
(584).
for
disposing of the
(as distin¬
guished from the issues) for fore¬
casters to talk about, in any con¬
text. But even a further doubt is
illusion about
in
order:
a
market
regarding
the
instru-
Pulp and Paper
near
Murray
We
are
pleased to
announce
that
part of the schedule
annual
Convention
being
CHARLES W. HAHN
ft
is
now
With Dominick Firm
Richmond
BOSTON,
Mass.
Lovejoy, Jr. is
Dominick
&
—
now
Charles
W.
associated with
Dominick.
He
was
previously with the Boston office
of Reynolds &
Co.
to
the investing community, ranging
associated
with
us
(Special to The Financial Chronicle)
Member Midwest Stock
Exchange
Atlanta
the
as
the
the better.
special trip to
a
Clermont
18th
the people,
repeated often
bigger the lie,
to
was
36
held, at Murray Bay.
R. S. Dickson &_ Company
CHARLOTTE
at
"sold"
be
48
"10-Cent"
Bay for the afternoon of Saturday,
for
Established
could
provided it
enough—and
41
New York State resident still
goes
June
Common
Theory of the Greater Lie,
made effective by Adolf
Hitler, held that any falsehood
credo
a
24
Dealers Association of Can¬
Mills
Common
THE GREATER TRUTH
The
10
dividual to keep more net income
(the effective rate of taxes on the
the Donohue Bros.
away.
the individual's contributions
plus
his income tax bill exceed 90% of
Invest¬
has planned
given
asset
taxable
The net effect of this
is not to permit the
ada
Common
the
on
qualifica¬
ment
in some instances where
capital gain has accrued
substantial
•a
income, of
charitable
contributions, when in
the
fiction.*
a
♦Excepting
than
great
TORONTO, Canada—The
trading markets in:
is
umn
merely postponed.
Conv. Schedule
We maintain active
confined to the facilitation of char¬
.
typically,
tax
the
excepting
course,
tion.
ID AC Adds to
the
itable
preceding years, the aggregate of
While cigarette shares may lack
for
contributions; and (2) that
$150-million
the credo that through
"strate¬
residuary estate that "goes to" the
widow, Mrs. Martha Baird Rocke¬ gic," but legitimate, tax avoidance
feller, in qualifying for a "marital money is "saved" or even "made"
408
in
introducing the new
high - filtration Duke cigarettes.
This brand is meeting favorable
consumer
acceptance.
Of other
penses
blades,
through
outlets
profit margins.
from $556 million in 1958 to $554.9
million. Net income was about a
million
dised
and
half
the
that
of the approximately
ex¬
flexible
Meyers, third in
in the industry showed, in
1959, a slight decline in total sales,
46
com¬
a
managed
$4.40.
of
Liggett
Winston
the
and
power
a
the fact
from
stems
be
Old
Center
particularly with the adroit use of
philanthropic contributions, can relevant codicil inoperative).
avoid, if not evade, payment of
Conclusions
taxes.
(One news story's typical
Thus, the public gets a reminder
caption:
"Rockefeller's Will
that (1) amelioration of the in¬
Avoids Big Taxes.")
•
dividual's. tax burden is largely
Such impression in this instance
porary.
the
kings,
sensational
individuals,
wealthy
Lincoln
Performing Arts, of the $22,689,735
in
expected
refunds ^(and
actually received and distributed
before
his
death;
making
the
this freedom from tax is only tem¬
Lorillard cannot be expected
continue
that
illusion
Thus, Mr. Rockefeller already
January 8, 1958, well before
their
receipt,
provided for the
outpayment
to
philanthropies
ranging from Brown University to
Colonial
Williamsburg
to
New
on
York's
First, comment thereon confirms
the continuation of the widespread
deduction" is un-taxed to her. But
gain and
and filters).
two
size
(above 65 bil¬
(around
that
Liggett
straight, is the
filter
Lucky
$9.23 against $8.55 for 1958.
over
straight
produced annually)
the
thol
around
having the best selling brands in
:
units).
the
and
dividend of
30% of the total cigarette business
and has the unique position of
national best seller
1959, Kent's 5.5%
homogenized leaf tobacco, net
per share may go above $10 (on
the old stock). On April 7, a 2for-1
split in AT Common was
approved. The new shares sell
Reynolds Tobacco Co.
has
Lorillard
84%% gain in Newports (men¬
an
of
million. Reynolds now does about
kings.
why
market favorite.
a
this, and to sav¬
ings developed from increased use
1959, R. J. Reynolds achieved
a new high in sales,
and for the
sixth year in a row increased its
net earnings to record levels.
A
12.2% increase in sales, over 1958,
produced a vast total of $1,286.9
except
billion
a
Mall
reach
so
categories
63
million.
In
all
and
cigarette
This
J.
R. J.
For
same
see
such
income.
on
were
Reynolds Tobacco Com¬
we'll talk about that
company first.
<
is
Net per share earnings for 1959
millions, and billions in
the great industry that
brings tobacco from leaf to lip.
The biggest factor in this industry
R.
accent
American
of
is
period net per
from 67c to $4.20.
So
rose
can
you
been
pany
million;
brands
hun¬
profit to
pany,
$203
In the
lion.
Company is second in size in
with 1959 sales of
Pall
since Sir Walter Raleigh's
day, smoking has brought relax¬
to
reported
only
an¬
payer
long-time straight favor¬
ite, is still a big seller (44% bil¬
lion units), but it's the gains in
So,
contentment
net sales in 1956
million added $90
million to that figure in 1957; and
1959 sales zoomed past $490 mil¬
of
industry
Strike,
(Tar has always been
better for paving than smoking,
anyway!)
and
is
Co.
dividend
and its shares have
favored in ■* accounts
1905)
over
tine content.
ation
which
most
Co.
it produces
the second
in national
popularity, Pail-Mall, king-sized
(with annual domestic output of
Federal Trade Commission) is now
or
Tobacco
been
$1,161.4
that the
the minuteness of the tar
back it seemed undramatic
unimpressive but, in 1957, the
began a forward surge
due importantly to effective re¬
search and smart merchandising
of its Kent filter brand. Lorillard,
company
titled to view the stock of
This
on
Tobacco
durable
long
few
appears
American
•
other
ac¬
(courtesy
since
'
American
produced. There is today a ciga¬
rette for every taste and tempera¬
accent
Unbroken
dividends
cash
of
where
advertising
13
about
earnings — a reasonable
enough
ratio for so
sound an
equity.
The present dividend of
$2.20 will probably be increased
this year. Reynolds Common is a
quality
stock, combining rising
earning power with solid defen¬
count for about 10% of total units
ment and it's nice to note
J. Rey¬
R.
sells
times
increase in mentho¬
the
cigarettes,
64
At
Common
nolds
output is in filtered cigarettes. An¬
other swing away from the tradi¬
tional is
1958.
in
$4.45
A
years.
and
million,
$1,400
200
significant
entails some
implications.
umnists,
fiscal
years
share
Reynolds looks for¬
new high in sales,
1960,
around
industry
of
50%
almost con¬
ward to another
demand for filtration
a
was
ago).
years
capita consumption (15
today
(A deal
merger.
cluded with Warner-Lambert two
years-and-over
age
group)
of
over 3,800 units. This is a 2% rise
over 1958. For the past five years
research tending to link cigarette
smoking with possible incidence
of cancer, although inconclusive,
did create
of
instead
for
business
filing of the 59-page will of
Rockefeller, Jr., while
yielding nothing of interest to the
scandal or gossip mongering col¬
P. Lorillard Company
giving of "10-cent" in¬
stead of "whole" dollars.
Mr. John D.
protected by earnings which this
year may rise to $8.00 a share, *
88.3%^; but to increase the
charitable
AND TAXES
The
dividend
the
and
tobacco
equities
is comfortably
major
among
to
up
WILL, PHILANTHROPY,
$5 dividend, yields over
Q%. This is the best current yield
a
This enterprise has now been in
Reynolds management is both
aggressive and progressive. It has
stuck to selling taste and flavor
For 1959, American con¬
sumption was 453.7 billion ciga¬
rettes
(up 4% over 1958), with
so
a
with
partment last year, 15.8%.
esting.
annual per
Salem
At the
had
asked to pay no
yields, and due to rising trends in
earnings and dividends, tobacco
and
billion)
SCHERCK, RICHTER
COMPANY
Member Midwest Stock
Exchange
320 N. Fourth
St.
St. Louis 2, Mo.
Number 5956
Volume 191
The Commercial
...
and Financial
Chronicle
(2365)
mentality, namely the
Which is used to trace
the following curred. As the eager
show the net changes Hans Hartung gem
in
example,
For
table
we
close, in the issues auction ladder's
the 1959
ince
Average attending coterie of the fashionthe past, able Abstract genre's addicts ocbidders
on
reached
Steel Production
a
...
Carloadings
the
$4,000 rung
Indus- of them suddenly realized that it
together was being displayed upside-down.
with
f
Tbe, auctioneer, quite unpera*e' is
wnnw chartists
tu£b2?' q!?ickly explained that
by popular Dow chartists.
whether held upside down
nHD A TAT?
After
Business Failures
ilvADE 3,11(1 INDUSTRY
Commodity Price Index
the
turn in
nniv" Tones Industrial Average
Jan. 1-May 27, 1960
Alcoa
—
duPont—--------
Kodak—
General Electric—
General Foods
General Motors
Eastman
—
-
Int'l Paper
Manville—_
Owens-Ill. Glass—
i
.
•
^ ^"8 upside-
dowrf" C
aown-
P
2*
S. In this
+
Standard Oil (Cal.)
—20
"auctioneer"
Standard Oil (N.J.)
—20
—
4
Union Carbide
—
...
United States
Steel
Westinghouse
__
Wool worth
♦Stock
during
+19*
3*
1960
week.
past
-
•
-.
that is supposed to
vs.
proclivity
criteria
with
to
I
"D
D
register
the end of 1957
into
General
^
about
a
propitious "out" time for the many
holders who, in 1955, had
Ford
subscribed
at 64.
to
the
But, alas
.
initial
.
offering
now
.
Ford
the
with
along
is
level
reserve
first
stretchouts
some
To
likely.
are
illustrate
the
is
carrying
to
20%
This
of
its
makes
investment,
total
it
unlikely that
companies will take
the
any
on
typical mill
°HUt
the
at
were
the
spring of
part of this trend
a
x.
_
nnpratinns
sptvp
,
,
the
to
even
^
Yeinl?erg. ^ withfraw FnternaUonal
^'tnerSh'P m Stea™S & C°'
the
(with
Sef 1t°aSktOSeYorI'sh7amed
iamea
Parke-Bernet Galleries, a contretemps slightly embarrassing to the
show an
SSu
min
mlet " en^
meet its dividends
can
an
and
capital
requirements
of
a
year
compiled
Peter R Hodgkinson,- Lewis H.
from the
-
.
Schulte,
Donald
L.
Stone
715or
of
ranaritv
"Steel"
about
will
average
(v«
now
Oii+rmt
said
and
what
tnnc
bringing total output for the first
the
rorresnondim*
npriod
vfa: DroXrtfnn waf
almost
Identical-'
L
44 4
'
million
ifww't'.
ontwt
of
points in steel onerations
P
David U. Stone
ended
the
current
with
rate
a
auarter
will
that
Saturday,
all
"Chronicle,"
May
weekly
the
week
28,
for
cities
for which
obtain
aha
nointsl
ffifcrttSE?
66 9%
of
!
rnrvneitv
price
composite
4940—4960
to our
pleased
a
to announce
half century
the
gross
a
Liouidatiok
of
-^"lumation
+
inven
excess
01
excess
inven-
However
there is
no
uniformity
intTese^ndquarter"
m
Is
operate
can
at
an
earnings.
But
af•'up"
high-
some
pected
ate »st "hit
Specialty mills
all.
The
profit
stainless
for
other
the
demand
specialty products was
depressed earlihF'in the ^ear and
pinch
-
nrnrinnoro
early
came
the
in
-
,
nf
thpep
a
capacity
nonLlVw"-.
ftimes
was
a^strike
Since
have
that
the
the comple¬
and
used
to
in
eighJol
an
,
,
.
,tc
downriver
stocks
rebuilt,
nlace
no
New
to
wish
to
extend
•
York--'
steelmakers
shin
their
our
customers,friends
a
Me
cMqnnai
strict
faPfors
inven-
s^me
slowdowns
industries still
domjnate the market. The operat-
tory control) and
jn gteel consUming
.
ra^.e
.g
decBne
sharp
to continue a
through June and
ijkejy
set against increasing them.^
,e. |ors. rer
sa ^srr,year'.
port. They just finished interviewin£. some 200 executives m 32
comes.
the
With
when
the
consumer
lowest
upturn
inventories
possible
level,
suit in al quick upiurn in n
erai
ing
are
aggressive
and
p
market-
paying 0ff
,
pr^.19Mce
almogt
flghUng
every
d
p?evaUs £
of metalcompanies
are
segment
g
s
gteel Operations
60c/
products
an
jn juiy
working.
to Hit Low of
churnings about in a state of
profitless prosperity—others are
4 Holiday Week
Steelmaking operations the end
will fall
-hv
1
into the low slxties by tne
Many
taking jobs Continued keep work
at_ cost to
page 32
on
will
be
000 Omitted
1,198,355
1,125,000
,
^Reductions
Steel
1959,
Vo
+ 2.1
1,251,897.— 4.3
1,165,000 -— 3.4
746,522 + 2.3
763,901
By Steel Companies
earnings
are
likely
to
20% in the current
quarter, "The Iron Age" reports.
drop
ESTABLISHED
MEMBERS
AMERICAN
t»
1
1
65
NEW
YORK
STOCK
broadway,
STOCK
the
EXCHANGE
-
national
UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES
metalworking
says
companies in a squeeze be¬
tween continuing,the rate of dividend payments and keeping up
with capital spending plans.
With the third-quarter outlook
steel
Correspondents inprincipal cities
throughout the UnitedStatesand Canada
to
the sharp decline in
steel market may place many
weekly
(ASSOCIATE)
new york 6
15
The
,
1910
EXCHANGE
;•
Metalworking is having a record
it is possible to
clearings
Warns of Possible Dividend
employees.
G. C. Haas & Co.
tub-
Masons"-Tf) DrUHng
ivity' re"'
"^ons. (ij^Drilling activity reX8 ;2T Users have
inventories and
deld
dIYpie +veniones ana are ueau
clear¬
$12,734,505 $12,478,426
Philadelphia
Boston—
and
are
Je n0 Place to snip tneir tup
of the United
I960
28—
Chicago—— '
we
theje
threat
week in 1959. Our com¬
Week Ended
clients.
to our
is
cimniv
ctppi
above
same
May
deep appreciation
ex-
peace
Thev
mnntii
civ
completely
,
ctppiq
labor
nine rr^onth stock whenever
for
general market outlook,
"The Iron Age" reports
*
carry-
assured and there is surplus tube-
rarrv
and
that
now
cost mills' profits have fallen off making
fast.
of
^
cycles
companies'are
Ma1or oil
even ing iiquidation farther than
lower rate and still show respect-
able
J-+- m0"th P?ststrike buildup.
long
parative summary for the princi¬
pal money centers for the week
ending May 28 follows:
of continuous service
On this occasion
the
on
steelmakine
those of the corres¬
ponding week last year. Our pre¬
liminary totals stand at $24,667,117,893 against $24,393,535,846 for
1.1%
are
the
w«
shames? of the II,
™k
r?„:„(
Outnnt of a^ont in Jl
,ond
Easter
decline
a
upturn in buying is likely to re-
chief cities of the coun-
for
States
tion of
u
rveragrbutwhhthe'ratestinin n^igei TstaSted inMaTafte?
iit started in May after
at
Week
the
by
indicate
try>
ings
We
in
ir>
will
mfninn inlnt
q
£vemontS to53*^riniinn tonf
of capacity. This is about
70%
operations
Ended
Week
this week will
increase compared with
ago. Preliminary figures
are
Officers
any
clearings
Bank
Co., Inc., is engaging in
O'Connor Drive.
for
Clearings
1959
a
securities business from offices at
251
Huation
May 28 Were 1.1% Above the
JOSE, Calif.—Keystone Fi-
nance
1,,
in May will
into July.haTsallsa^head^ngfola rmak
such
But the magazine points out the ^ ^ny managerfpredicjrec:
possibility of a sharp jump in ord do]layr saiesB for 1960. New
action seems remote.
(Special to The Financial Chronicle)
SAN
Automakers
(3)
ouTas^result ofTm'me^tense
Eugene Greenberger and Rich-
Ju,m
tw
TT heavy melting grade of
steelmak.ng scrap for the fourth
remained at
$33 33
ton
* pk
g
fourth
discussion of the pos-
some
formerly with Shields sibility of a reduction in the dis...
•
count rate,,.in view of the drastic\ Also
on the same date Muriel a.Uy
different credit conditions
F. Siebert will become a partner since last September s advance.
in R. B. Stearns, Gutman & Co.
Now with the change which could
niantc
ur+rcapitarplograms Tnothe?
further capital programs. Another
the producers of these steels.
was
anH
ScraP is holding steady,
seems
clear that the need to deal with
be
^UI^88
,,
,
rplat.pd
operations related to
Treasury refinancing, it also
in
will
orderim?
AdHD
be
inventories
plants
over
Production
During
long-term debt equal
a
of
business.
otart
up¬
irndertnfWmhef
off
dividend- iast
spending squeeze, the magazine
points out that the steel industry
three
be attributed to Federal Re-
serve
In Investment Business
ART AN INVESTMENT
ioik s
since
While
1959.
ter K. Gutman to partnership. Mr.
Gutman
^ Go.
ON INVESTMENT
BEING AN ART—AND
ivew
Average
negative
lowest
Bank
ctl
the
during the
of May, and
0
ektoguth ng°a!l tlx TdTantale fd
Sthehswgitc"ad1aV^dge
of
ease."
weeks
^
cost
no
Stock Exchange, will be inflationary pressures and over- drop in new orders has hit bottom,
changed to R. B. Stearns, Gutman exuberant business decisions had but there is no rapid upturn in
&
the admission of Wal- greatly diminished. There
was sight for some weeks.
66, General Motors down at 43-a
(Scene One) At the latest
spectacular
Art
Auctions
of "erring
signs
of
position
T
for
pressure
sharp cutoff in capital
spending is expected. Most
mills say they are going through
with
all planned
programs, but
shifted to neu- mills
some
side
member bank borrowings declined
:
the
tr
commit-
Yuork
down
thirties, this seemed like
;
^une_
both
eouallv
interpreted as
tral" gave
Oj-
and
reduction,
of
the
some
a
riods will be
£St
period),
see
Excess
denleterf"
tMonetalJ policJ,+ic,h had been outlook. Some of the lower-cost
•
brush
because
(1)
ln dividends over the 1958-59 pe- "steel's"
prices; or and upon the tax receipts of Fedso popular eral and state governments.
of the
instead
dividend hJay"icuw.
payments.
same
proportions. More recently, atten-
a
Stearns & Co., 72 Wall St., New
York City members of the New
from Ford
With
Motors.
issues auoted
in the
was
by
may
tax-
loss for tax purposes
a
near
offered
will be
uivmciiu
*as ,.palHd
of credit, is assuming ever-larger
to
VJTU. Ulllctll 06 vU»
value
in
moral
in
m
However,
ments
companies
some
sales, with
sales, manufacturer and dealer margins, and use
turer and dealer margins, and use
OLt/di Ilb?
4yy> q
J?t C*r\
For example
cut
a
a
wages and
archai?
"D
T)
mar-
Ifrequentl^rewmmended switch
to
events
H Arm
1
A
1U
supplant
arithmetic
motivated switching
best
for
alterna-
tor one, addedthe
debt for expansion.
the
At
time, a
of
more
reduLd stiland matrLl co^
of
on
ket price in correlation with value
over the long-term, reminds us of
the
or
£"$£? dollar
sumption,
UJ ULe aruLaic orusn,
e
Divergent Value
Stressing the divergence of
-
_
the
currently
of the
it.
measure
u n e m
^^ke/lTTbfcyTe%e
...
1
Tax-Switcliing
For
two
high
grave
a
tp
—
one
doubt is called
for regarding the existence of both
a trend itself as well as the "tool"
Thus,
d
iourtn
this
and
-
remained
employment,
+
new
iiauuuQi
reader, this column will present tion has shifted to the potential
the choice of a full set of the U.S. unfavorable influence
upon conDepartment of Labor's charts on sumption of petroleum products,
—20
f—
made
at
N.B.
these
9
3
—
-—
Aircraft
United
were'correctly hung
—20
_.i
uo.
instance, the lines
barrassed.
—
l
plans is likely. The
tive
njobile output advanced moder-
Sears, Roebuck
Swift
1
question
mark, some
slowdown in future capital spend-
Bank of Boston
widely used indices of busi- ately last month, making it likely
ness
activity, namely the Federal the industry
achieved
its
anReserve Board Production Index nounced May goal of
615,000 cars,
and the Gross National Product. The
outstanding automobile trend
Scon a
swelling chorus from the continues to be the penetration of
.audience
joined
in
a
chorus the
growing
array
of domestic
0
Texaco
in
moved
ing
most
0
Gamble—
Procter
steel
three consecutive months of
decline, says.The First National
price
$11,000.
.
and
in the current
the
ie
art-devotee.)
One
of
the issue of its New England Letter,
main speakers before
the Finan- Continuing,, the Bank says, Steel
cial
Analysts' Society a few Production moved steadily downdays later started to discuss a war+ getting close to two million
master
chart showing the rela- ingot tons weekly, the lowest nontiOnship between corporate prof- strike rate since late 1958. Autoits, the profit margin, and the two
—15
+ 2*
—25
+24*
____
automobiles
big
a
the
July 4 holiday week
customers'
some
still
opposite directions in May, follow- ing
(Scene Two,
Offering solace to
+ 1
—24
—19
—34
—22
+13
—10
+ 9
—20 ;
■—11
American Tobacco.
Anaconda —----Bethlehem Steel.--
Johns
of
—^9
+1?
ATT
Goodyear
Int'l Harvester
Int'l Nickel
a
,
American Can-—_l_
Chrysler
sophisticated bidders, without
tandmg^berh^^t^
kn°ck-down
—•
—-
^fas .th<r
the
—11%
Chemical.—
Allied
reacsame.- Whereupon The two bellwether industries—
for
capacity—in
shipments <md orders be¬
cause:
side up, the "esthetic
;
bottom
(normally a slow
steel industry will
or
in the Stocks Used in
Net Change
hit
predicted May 30.
Auto Production
T"\TT\TTOrnT)\7"
and
of ' ^July
4,
"Steel," the metalworking weekly,
Food Price Index
'
which,
Average,
June
year—about 60% of
the
holiday
week
t
Retail Trade
The State of
one
comprising the Dow Jones
trial
of
Electric Output
5
Dominick
Members New
&
Dominick
York, American & Toronto Stock Exchanges
14 WALL STREET
NEW YORK
6
The
lem.
TAX-EXEMPT BOND MARKET
has
DONALD D. MACKEY
BY
has
•
they fall within the working week. Memorial Day was not
an
exception to the axiom. No
large, important new issues have
last
the
into
come
column
since
market
and
We
state
sume
plans
new
The
mean
v-
M
'
T
n
»,
stantial
could
return
offering
enlarged
that California
its P°licy
t0
.1
Yield Index Unchanged
may
Commercial
sirable
from
vestor
from
both
tax
The
return
con-
other types
4
times
four
a
corporate tax angles. These segments
of
demand, however, are
limited and cannot absorb the full
volume
of
tax
or
an
than
bonds in investment hands. There
,K+1
is no subtle approach to an underwriting problem of this magnitude.
Port Authority Unjustly
figure
$400,000,000.,The
increasing share, when
large
investors
ally priced out for
Puert°
Periodically,
,
one
> Florida
q
■■
'
,
•
u
reason
Those
„
eenerallvkepTpace1 with"the vol-
largest
our
Bond
Inventory
by the
indicated
that
thoroughly
are
famil-
volume
increased
ahead
mercial
years
months
accomplished
the
coincidence
issue
new
calendar
generous
banks.
With
.
the
volume
gradual
(Friday)
increase
in
and
slowly lessening
present marxet tone,
market tone,
yields, the
yiems,
tne
although fairly good, lacks the
robust mialifv to carry it thrraiuh
quality to carrv it through
of its operation.
T
«
.
Alabama
1964-1990
11:00
:
^
|
11:30 a.m.
2:00 p.m.
1961-1965
10:30
a.m.
1961-1980
10:00
a.m.
1961-1980
10:00
a.m.
1961-1980
11:30
a.m.
1961-1970
11:00
a.m.
1961-1990
9'7/10
~V
:Pg^.e"; ^a^'
District No.
pAnncvivnri«a
V
Pennsylvania
Power
System,
1964-1988
1961-1982
1964-1970 -11:00 a.m.
8:00 p.m.
2:00 p.m.
11:00
,
11:00
a.m.
11:00
a.m.
a-
*
Noon
1961-1982
(Thursday)
,
„
1961-1990
15,000,000
" ;•
8,500,000
1,000,000
-J
•
june 9
.
1Kftnnftn
1,500,000
1fUJ1
f
1fto,
10:30
1961-1985
1963-1986
5:00 p.m.
2,000,000
1961-1980
10:00 a.m.
^
the
list, from bills
long-term bonds. Although the
the
thority
c™^rlbl^ssnth^°Sey wllre
it would
that
.a
year
policy
ago,
toward
an
enough
easier
for
irt
the
money
situation,
Federal
desire to be.
or
-
The
their
railroads
problems
own
though
best.
Al-
they might like to be out
continue
r,
it
in
it
were
e-
.
.
cnnol
^omnn/)o
sonal
nn
demands
system.
June
These
strenuous
on
are
the
sea-
banking
derived
from
tax
payments, the - sizeable
Treasury financing, as well as an
exDandine demand bv thp cornoexpanding demand by the corporate and tax exempt bond mar-
be most
.
a
mer
lull
as
economic
problem.
under
the
It
the
arrangements
and
in
the
taY
of
problem
a
different
+oV
ap-
proach to tax exemption, with
Port
of
ent
Drexel
seems
de-
about
ernors
time
that
the
gov-
of
Schmidt
ocuiiiiui,
_ui
Roberts
nuucxis
der,
Peabody
Pearson
't1".
orvz-S
of
Dnknrf
&
Co.
Smith
Barney
OclIIl ey
OUIllIi,
C
T3
'£
,T
^
Webber, Jackson
1
r
Rate
Bid
William
f
R -W
th
Aiken
rjirarri
Thaver'
of
Trncf
Pnm
Sovdng
Cor
fows
E.
of
hf i
Howard
York,
Doremus-Eshleman Co.
man
of
the
3rd
is
3.40%
Management
3%
1978-1980
\3.50%
3.35%
been
3%
1978-1979
3.25%
3%%
1974-1975
3:25%
KANSAS
CITY, Mo.
formed
of
com¬
—
offices
Broadway, to engage in
31/8%
1978-1979
3.25%
340%
ties business. Officers
'3%%
1977-1980
3.55%
3.40%
Welch,
1978-1980
3.90%
3.75%
Mader,
3.50%
president;
vice
3.65%
3.40%
1979
3.75%
3
314%
June
1980
1980
1977
3.90%
3.75%
liam C. Hisey, vice
3%
1980
3.90%
3.85%
assistant
1, 1960 Index
=
3.46%
59|
and
at
a
4722
securi-
are Gus D.
treasurer;
G.
assistant
Edward
J. Stonner, vice president;
secretary;
has
Edward
president,
31/4 %
3y2%
3i/4%
secretary
Mutrusco
Corporation
with
3%%
___2
in
/mu
Wil-
president and
and
John
Collett, secretary and treasurer.
1
11:00a.m.
........
*8:00 p.m.
196"l-1980
Noon
v
"Be 16 (Thursday)
2,000,000
Hawaii
College,
!
v
11:00 a.m.
1,800,000 r;:
(Friday)
Colorado..
*
June 20 (Monday)
\
County
10:00 a.m.
1,308,000
Manitowoc, Wisconsin
.
1,650 000
1961-1980
3:00 p.m.
5,000,000
School
Form Mutrusco Mgt. Corp.
3.80%
2:00 p.m.
17 000 000
1,200',000
nonoiuiu, nawan
Maricopa
4.00%
New York
City, N. Y.__
Honolulu
Mechanical
mittee.
^3.55%
1993-1998
3,300,000
__
t
Chair¬
public relations
a.m.
11:00 a.m.
Fort Lewis Agricultural and
&'co
duPont
9:00
1962-1985
5,000,000 '
hp
of Francis I
1961-1980
'99
5 IDO 000
.....
FrTnris 'T duPonf ^ University of Tennessee, Tenn....
IIS ?
:
June 17
r m a nan
1980-1982
Baltimore, Md
Cincinnati, Olio
New Orleans, La
Chicago, 111
15 000 003
*
^ nnn nnn
Puerto Rico '.
;
^
1978-1980
Los Angeles, Calif
•
:
w
change Bank.
3%%
Housing Auth. (N. Y., N. Y.)
*
Baker & Co. and Jack I. Foard' Struthers, Ohio
31/2%
New
n
Washoe County, Nevada.....
> 3,000,000
15 (Wednesday)
r,
Co.,^hairma^^ur^. Burgas
(State)..
Jersey Highway Auth., Gtd...
New York (State)
Pennsylvania (State)..
Vermont (State)
^
Unive^ity^^
.
c
Connecticut (State)
New
r
City Jr. College District,
1961-1976
11:00 a.m.
District
h No 210, Arizona
A«ked
1:00 p.m.
...
*
and legislators nf thp ctafps
Maturity
1962-1971
v.•
i
'
.
80 000 000
30,000,000
^^a^e^la
.
MARKET ON REPRESENTATIVE
SERIAL ISSUES
California
1
v
7:30pm-
Philadelphia School District, Pa...
Pinpllas Pmintv
Pinellas County, FlnriHa
Florida
1 JUiCHclS C/UU1HJ,
J? 1U1 lUd
"
T'Curtis,
fr 01 JLJ?1
"
circumstances
involved, faced the practical elethat the Federal Reserve should ments of
this problem, along with
m°ve tooffsel any possible determunicipal and railroad officials,
rent to the forward
moving econ- and negotiated enough tax reducomy.
In so doing, at this par- tion to
keep our present comticular
time, the bond markets muting
facilities
in
operation
seem likely to be benefitted.
This is not a Port
Authority prob-
-owi
1
1961-1975
25 000 000
California
California
Co
T"l
a
o
Pasadena
7:00 p.m.
1200000
Membership committee: Frank-Trustees, Illinois
]in
2:00 p.m.
-1 i
" (Tuesday)
™
MUwaWwi^^rr™":
J
&
Oi
£'
Michigan
&
Edwin
-
Kentuckv
Robert S.
Parke, F. Stanton Moyer of Kid-
the' 0"
Authority, inexperienced in
terribly complex
problem,
It's
March
11:00 a.m.
1961-1970
2,000,000
5,000,000
Gran^Forks Ind' Sc^KsT'n'd
T.
Suplee, Yeatman, Mosley & Co., Inc., Rubin
Hardy of
ivTdic.ii
Des Moines, Iowa_______^__.___._;
University of Illinois, Illinois.....'
ClS7i
Co.,'Robert
&
.
Arnold of
Y11
a
overall
outing
committee consists of Henry McK
Authority the gimmick
merely be
nmaph
could
traditional sum" ^tr1qtuted for the railroads and
continues
others.
background factor in
sirable
consideration
throwing
to the Port
^1S
t^°mnVth
month
In
would
em-
practically approached by
J
sensible
relief.
not
,
situation
the
and
The
chKlt^F^S'lricktT
'
themselves know
In tanV°T co.gn!zaJlfe of the dragging them to financial
so-called soft spots in the general barrassment. This
economy
au-
no
! ?f..tbe _c.^!"uteX business, they The First Boston Corp.,
Reserve would
rvf
onmn
This it has
The Correct Solution!
'
aPPear
being gradually directed
is
port area.
8:00 p.m.
.
,
of
a.m.
3,000,000
^
that
assume
a.m.
-
California.
Pennsylvania State University,
Pennsylvania —
Reading^ Ohio
;_L_w
Pa.—Albert A.
„T_,,
1961-1983
5,870,000
High
School District, California
R. Wenzel, of Francis I. duPont &
A
3:00 p.m.
Los Angeles Dept. of Water &
N amesCommittees
PHILADELPHIA,
Noon
1,325,000
1,645,000
—
Union
p.m.
3,000,000
—
County ; Joint
2:00
—
June 8 (Wednesday)
.
drastic market fluctuation. There Dumont Sch. Dist., New Jersey—
have been no recent additions to Fort Pierce, Florida
the negotiated new issue calendar. Greenville, Ohio
-
1960-1989
1,000,000 " 1963-1966
na
^oum uena, muiand
Kern
Noon
25,000,000
—
2:30 p.m.
1960-1980
*
2,180,000
Auth
t>tate Auth.,
e
Tri,.
1961-1990
2,700,000
York
1, New York
Stafp
rwipral
nnn"
2:30 p.m.
William A. Webb oi DeHaven
N
on
Miehismn
2,500,000
1962-1986
the Port Authority is set up to & Townsend, Crouter
& Bodine ; west'vi2ginia state "Armor "Board"
Reserve Board Wary of
care
for all port area problems, was named Chairman of the proBusiness Trend
J ^pfnbtale Arm°r Board,.. 1,475,000 /: 1962-1990
Were this the situation, the Port gram committee. The other mem%
"
"
Treasury issues are firm and Authority would ultimately be the ber is William A. Lacock of E. W. June 13 (Monday) I
dealers report demand for almost overall socialistic
1961-1984
government for Clark & Co.
•
.Corpus Christi, Texas____„_-_—J
3,810,000
to
a.m.
■
1961-1989
—
1
;
Recently the Port Authority has
k.een variously criticized by politlcians>» articulate organized com-
people
all sections
a.m.
'''
•
,
3,375,000
/n/fo*i«1avV' ^
so-called
mass
Co., President of the Philadelphia ^
.
a VA
muting . groups, so caiiea
mass „ ' ifi
A^nclatinn
annnnnrpri
Bethlehem, Pennsylvania
transportation experts, eanois ?,ecurlt„I??„Asso<ilat;on'_ ®nnouncea .P.lnnmington, Minnesota——.-transportation experts, editors
aDDointment of various 'com- Bloomington, Minnesota.:
.1.
tn
highpr nriccc
unlp«
others for resisting efforts in® appointment or vanous comxo
nigner prices unless there
tn^re he and
be
sieu Parish School District
might
nlace
all
commuter mittees of the association to serve
raJcas
greater inspiration induced from
for the ensuing vear
No. 30, Louisiana.—
for the ensuing year.
- ino.
nanas.
problems
in
the
Ports
nauub.
the government bonds market.
.Waterford Township School Dist.
w
Waterford Township School Dist.
Most of these
.
11:00
"V
•
.
Memphis Bd. of Education, Tenn._
Aocm
Phila. Sees. Assn.
fight
3:00 p.m.
8:30 p.m.
>5,000,000
1,550,000
!^emp£is'v^enn/™?e
seems
splendid^ performance exhibited
Port, its directors and its
competent personnel over the
a
1961-1980
is
List"
"Blue
yield
base,
and
considerable, if not unusual, demand
on
the part of a few large com-
of
2,379,000
1,250,000
6,095,000
Dothan,
Excessive
Not
a
through
lareelv
few
nast
been
2,208,000
I—-——
likely to be absorbed without any
the
has
a.m.
Anchorage Ind. Sch. Dist., Alaska
Bloomfield, Connecticut————
v°n
Ju
iar with the Port of New York
Authority, its operations, its
growth and its problems, physically. financially, politically and
otherwise, are impressed with the
umedurine
this
v
v
Alaskal
Anchorage,
on
or
i
j
4.
11:00
1960-1988
—
r
„
ahu
1961-1989
-
secondary market volume
of State and Municipal bonds as
i
of
:
Lond?
bonds
gradu.-
are
one
4,443,000
Commis-
Develonment
New additions, besides the $93,-
and
best known
Authorities re- $350,687,820 as we go to press. A
ceives headline attention, This is week ago it was $364,607,980. The
nus is
^
another, as the market improves not unusual considering its mag- market appears to be in fairly
and net yields diminish.
nitude and the nature of its status, good technical balance and the
other
June 3
1
,
,
The
Criticized
securities,
exempt
.
currently is close to $575,000,000.
™
of securities, and particularly from the individual and
even
a.m.
-—
tinues relatively favorable against
*
10:00
.
securities
exempt
rather
year
in-
and
dealer
viewpoints.
/U^n1/>n
1961-2000
June b UVlonaay; .
000,000 California bond offering Hempstead Union Free Sch. Dist.,
mentioned above, are $20,000,000
No. 11, New York
---------2,973,000
Maryland State Roads Commis- Linda County Water District, Calif.
1,200,000
lends itself to the quarterly ap- sion bonds for June 22; $16,800,000
./yJune 7 (Tuesday)
proach in order that investment Florida
Deve^ Bridge Kev Albuquerque Municipal Sch. Dist.,
.
"
bankers may suitably place the (Pinellas
County
Mexico
3,500,000
Financial
and
im-
gradually expanding. Last week's
total of scheduled sales approxi-
sub- mated
borrowing
of
amounts
attempting to
Chronicle's
High
Grade
Bond do it in smaller amounts opporYield Index is unchanged at tunistically. The volume of neces3.46%. This market respite is de— sary
financing ' involved
better
The
"f
2,902,000
of Regents, Texas _ _ -—- - -- - - - - Oyster Bay Central School District
revenues
relative
A
,
ago.
•
road
show
to
continue
AfllV
st* t%r%
/i
of issue, maturity scale, and hour at which bids
wm 5e opened.
^
T
« /Thursday)
J
June £ v-l w a
y/
1961-1988
3:00 p.m.
Ithaca, New York
—
L;*^,uuu 1962-1989 11:00 a.m.
Lexington, Kentucky------------- • 4,/ou.uuu
North Texas State College, Boara
.
bidding for
issues, the
market for tax supported bonds is
about
unchanged from a week
market
Toll
4.00%.
was
7
P
■
school bonds, provement.
'
No. 2, New York-------------$15,000,000 harbor bonds and $3,Riga Ogden, etc., Cen;ral School
000,000 small craft harbor bonds.
New Business Calendar
;
District No. 1, New York------All will be general obligations of
Expanding
;
Stamford, Connecticut--—-- the state and will mature serially.
The
new
issue
calendar , is West Slope Sanitary Dist., uregon(
competitive
general
*
past
$50,000,000 veteran's
are
'
we
bonds,* $25,000,COO
Without the impetus lent by the
usually
supported
revenue
few days. This recent improvemeht is not reflected in the
reported last week that the Smith Barney & Company Turnof California plans to re- pike bond yield index which last
its borrowing late this June, reported (May 26) at 4.03%. The
are
now being readied for
week previous the average yield
Included
uled for the balance of this week,
and
Road
• -
the sale of four issues on June 28.
our
sched-
are
none
California Reverts to
King-Size Offering
issue flotation
new
profit.
no
Toll
Thursday, June 2, 1960
.
list the bond issues of
^ ^00,000 or more for which specific sale dates have been set.
Information, where available, includes name of borrower,
rJ
KurJri
tabulations
f0n0Wing
issues
been firm and active for the amount
other
when
for
market
J-JCii. g,
▼
nrnfit
nn
.
.
Scheduled For Sale
T)flT£fBr ISSUGS
be
not
manifold tasks
its
from
which it derives
The
Holidays invariably detract from
should
and
it
from
.
■
Authority already
Port
problems
detracted
the volume of
and Financial Chronicle
The Commercial
(2366)
June 21
(Tuesday)
Alabama
Broward County, Florida
Chula Vista, California
11:00 a.m.
50,000,000
3,600,000
1,250,000
11:00 a.m.
1961-1980
7:00 p.m.
2:000/J00
Jersey City, New Jersey.
1961-1970
1961-1980
1961-1985
0hio°
11-00 a.m.
lSOOOOOO
1960-1970
Noon
High Sch. D., Calif.
Passaic, New Jersey..
1,750 000
1961-1975
11:00 a.m.
Person, New Jersey
3',080',000
1,132,000
Oxnard Union
l'4is'000
WeSt °ranHe' New Jersey
r
.
.
-
June 22 (Wednesday)
H.
'
Maryland
........
..J
■
3:00p.m
^.538,000
20,000,000
8:15 p.m
1961-1975
Number 5956
Volume 191
.
.
The Commercial and Financial Chronicle
.
losophy
of full employment, it
continuing
inflation.
At
time, war bonds in
meant
about
Frederick W, Page,* Partner, J. W. Seligman & Co., and Vice-
liy
v
President, Tri-Continental Corp., New York City
utility stocks attractive to investors and how can utili¬
successfully raise capital through common stock financing? The
answers to this reflect Mr, Page's 27 years expert conversancy with
one of the largest portfolios of common stocks. The author comments
on investor's willingness to select, and thereby push up, high price- 7
earnings ratios of issue that promise higher earnings in the future,;
and the ways a utility can produce earnings-growth despite rate of
return regulatory limitations. The latter includes:
(1) advice on
where and how much common should be issued; (2) inadvisability ofv
stock dividends and pre-emptioir rights; (3) importance of selling7
new stock at a premium over book value; and (4)
need for broad. <
market for firm's stock. Mr Page deplores use of current earnings / ;
in computing cost of common stock capital in rate proceedings and
argues for 1% to 2% spread above cost of prior capital.
What makes
\
ties
much doubt that;
industry is going to
be relatively more dependent on
the capital markets over the forenot
is
There
utility
the
-Pn+iiro
*
seeable. future
■*-"
'
^
\
-
of
; :
■
in:",
'
with
OmOOr.lVPS
developments,
was
capitalize
to
sure
the- rate,
we
projected
that
the
market-was
riods
of
"these
were
minor
capital appreciation and eventu- (X2L2,, and. Cpmpany
A's
stock
yielded 5.2% .compared to 5.9%
for Company B's stock. Thus, for
Investors' Recognition of
Inve^rs Recogniuon ot
anyone able and willing to look
Future
r
ally higher income.
long-term upward
there were pedecline, but generally
Of course,
.
relative to the '
Earnings
we^e
of
were
properly
varvinff
-.a
selected
.
.
three to five years
pany
.
If
P'ortant
the
n__
m
.
fact that the
will be and not
ica. If one pro¬
inv?5tffnt Phi^spphy that ^ih^^oh'^ps^ th^p^^
aS
predominates.
letter
the
belief
capital re¬
quired to build
capacity to
the
4.
basic
v
i.
-n
•.
n
-r
i
Frederick W. Page
segments
electric,
industry
gas,
telephone and^water. Technologi¬
cal developments requiring pro¬
v__
in
agS€ts
I hprp
ic
not
that
that
greatly affects the flow of
greatly affects the flow of
substantial
a
7he"* popularity of
segment
savings. This basic inphilosophy is slow to
change, and changes, are usually
brought about only by some sub-
country's
Consequently it
stantial
problem
will
be
of
raising
new 'capital
for many
utilities
with
to come, and it will be one
years
°f their
major problems,
Obviously, to be successful in
meeting this problem, securities
.
must be made attractive to
tors who have
many areas
they
can
invest their
inves-
in which
savings. To
make them attractive and to
keep
them attractive is not a one-shot
operation
requiring only
occasional thought and attention. As I
hope to develop
takes
a
a
appeal.
;
f ;7 v
Although there are many.types
securities -which
sell to raise their
like to limit
my
stock
Ruaiz
,
.
'
,
■
wii ct
future
on
i Cictuuiui
,,
-
stocks
during the
Throughout the 1950s, the earn-
^W.rova^n°nman? statef
■
,ife
insurance
banks
"
* Hectronic
j
vaxo»
iixj.O'
earnings is
Ctiiti
umci
viiipiiaoiia
why many
„
giuwm dlucivs
ahd;pther growth.stocks
f
to
companies
fnvest
.
in
New. Jersey
d
,
i»«s of Company A had grown at
'he compound rate of 1% a year
■ which
permitted only an occasional slight increase in the divi-
per- •
Current yields are more or less
ignored and a dollar of earnings
is
no
longer considered to be
worth
less
than
a
dollar
stockholder's hands.
As
a
utilities
;
can
capital, I would
remarks to
com-
u
A
avc
vaAiClWJlv
..
^
v
investment
-
-
-
—
~
~
the
basic
was
to make a quick fortune by
philosophy
-
-
income securities, every year. Assuming that ComAs earlier stated, basic investinterest rates rose: pany A could expand its growth ment philosophies ■ are slow to
8
{
that
rhan^e
and changes are normallv
undue risks. In the utility field from 3% to 5%, and the premium rate to 3% and determining that change, and changes are normally
this was reflected in the highly placed on capital gains. With the there was no reason to expect a; brought about only by some subpyramided holding companies. In gUrge in population and the great decline in Company B's growth
Continued on page 2d
part
of fixed
though
borrowing funds and taking other
■
the stock market it was reflected
u
.
l
1
\
*
•
substantial
purchases of common
stocks on high margins by "
individuals who knew little about
in
stocks and relied largely on mar-
This announcement is not
an
ojjer oj securitiesjor sale
or a
solicitation of an ojjer to buy securities.
.
New Issue
.
^
-
June 2, 1960
,
"
$40,000,000
buy stocks recommended by your
barber.
;
kp
,
>
brought to an end
»
by the stock market crash of 1929
and
the
subsequent, deep
and
-
This
era was
lengthy depression. Fortunes were
capital, but the; lost and people were badly in;
considerably, both debt. The public decided almost
trom year to
year
and between to the man that it would never
companies, and if utilities can touch the stock "market again...
highest
cost
will vary
cost
43/4% Sinking Fund Debentures,
due June 1,1985
.
make
these
they
will
added
their
securities
attractive,
they have
investor appeal of
find
to
the
prior
that
securities.
Moreover,
jny knowledge of bonds and
ierred stocks
leaves
pre-
muqh, to be
uesired, but having spent 27 years
as a
student of the industry, and
nf1!!? largely responsible for
* the
one
largest portfolios of utility
common
stocks
in
the
country,
a,Sf t"3! I can speak with some
anil nty afc>?ut common stocks
7hat
appeal.
give^. Uiem
investor
Savings mostly went into life insurance,
savings
accounts,
or
bonds. When common stocks were
bought,
Price 100%
they were purchased alplus accrued interest from June lj 1969
most solely on the basis of safety
and yield. Retained earnings were
deeply discounted because a doilar
in
corporation's
the
treasury
not worth as much as a dollar
in the stockholder's hands. There
was
to be no growth, for the
was
economy
had
matured
and
Copies oj the prospectus may be
Broad
an
from
Dillon, Read & Co. Inc.
Street
the
companies.
Basic Investment
Philosophy
them
legally ojjer
The First Boston Corporation
Blyth & Co., Inc.
Kuhn, Loeb & Co.
Eastman Dillon, Union Securities & Co.
Goldman, Sachs & Co.
:
Lazard Freres & Co.
Glore, Forgan & Co.
Lehman Brothers
L.
each of
mon
as may
the
+
In
prospectus)
these securities under applicable securities laws.
prospects were for recurring depressions. This philosophy prevailed throughout World War II
and the early post-war period,
The expected post-war depression
Investors, and was always just around the corner,
Whitehall Fund—have been
parand corporate earnings were apncu
arly partial to utility common praised at very low values. The
stocks, and these
holdings have popular form of' investment con®^ved us well
over many years,
tinued to be life insurance, sav—
As of March
31, 1960, we held ap- ings accounts, war bonds, and
Proximately $155,000,000 of these other fixed income securities,
they constituted the
The shnrk that brousht this
lay
they
Th#» shock that brought this era
to and end was the outbreak of
in ^slsinj5le lndwouijr investment
industry XIJLV^
in-Continental,
t!}y^nSi National
obtained jrom such oj the undersigned {who are among
the underwriters named in the
Our four
investment companies
r-
?7a.ttracts investors
"ivcDiuis
the Korean War.
This event con¬
public that the United
States would have to maintain a.
vinced the
to com- large military 'establishment on
ti/
s generally and causes practically a permanent basis,
A0 5eiect particular stocks This meant continued high tax
the
supply of thousands of rates, and with the political phi-
of
+
the
.
financing. Not only is
this
in
matter
js ^ £ave variable annuities. Ail.B',how^, had; <rf fact, a premium is placed on
4-^
A
1
1
"'7'thb^ould^have been^uhthink- shown a growth rate of 9% com- the reinvested earnings because
Following World War I and able in the 1930s. This change was pounded annually, and had in- * they will earn additional dollars,
continuing ^throughout the 1920s, the result of loss of favor on the creased its dividend somewhat; undiminished by a tax bite,
.
stantial shock.
shock.
little • later,Ht^ket tips. You were crazy not to
to compile
take the ; opportunity of making
give securities a fortune by borrowing money to
investment
mon
u
^
of efforts
years
record which will
of
.
common
^approva^o^
of.-, the
vestment
that the
xnat
'
-i™..
ket wrong in its appraisal of theie sell at more than 40 times current
hi !,
increased enormously
two stocks?" I £° not beliey^ so . ear'nings^and yield less than 1 %.
of
the
uranium
stocky which 19503° Itds^e^dent"thaAhe public and a projection of the earnings, ft js obvious the buyers are lookmeanfhemaln' tavestLnUheory both "directly and indirectly °fthe two companies will show ing growth future, share are seeklng t0 the in per and earnings.
portionately heavy
capital
ex¬
penditures will also have an effect
on
overall capital requirements.
appears
_
ClOtlOl
mucn
.
B sold at 18.4 times earnings
pany
stocks.
common
There is not much doubt that
«
not
+
rnmnanv a
Vvph*
•
;thaTihey'are wilUng^o S
> company B's stock
ori a 3.7%
trasted to Company B's 50% debt 'yield basiseven though Company
and 33% common equity. In spite * g's mortgage bonds yield 5%.
ordinary popularity and growth of
tment
staggering.
the
that
Pany B since it has only 41 % debt
and 49% common equity, as con-
advice and manage-
ment; This resulted in the extra-
statement
a
mean
This is true for
of
professional
••
expressing* the,
investment phi-
a
investment^hilosophyn I do
philosophy. ^
de¬
mand becomes
all
V'..
x
brokerage
in
icsophy changes only
times in a generation
I thought about this, the mdre .1
of
meet this
.."VV
.
Recently I read
ten
amount
Combetter
looking ahead
jects trends in
demand for
years,
a
stocks
and
other
single indus¬
try in Amer¬
next
ahead,
B's stock represents
share earnings has become so im- 'investment than that of Company
in the investor's mind,' A even though it is higher priced
results '*
he ex- ; relative to current earnings and
in the position of and to show the resul
sell he was sure pects to obtain, I will give -i the - dividends.
duration.
short
*
To illustrate why growth in per
long term results and they usually
than any
the
earnings for
the former to rise 3% per year,
and for the latter to continue its
To
grow.
on
in the future. It is through this pany A was selling at a ratio of
growth that they hope to get their .12.5 as- compared to Company B's
strong
a
trend.
taappreciation, others emphasize^holder was not
safety, Or there can be a.cbmbina,; ^^ng forced to
Of
economy
Upon studying long term charts
the stock market, the public
discovered
•;
issues. Some invest to obtain mcome, some invest-to obtain :capi-
rion
technological
this
'7
this, one should buy
large volume matured- and the in- common stocks and avoid fixed trend of 9% per year.
Using the
vesting public was dramatically income securities.
resulting projection of earnings
shown how poorly*bonds treated
A refinement of this basic in- for* 1963, we found that Company
holders in terms of purchasing vestment philosophy
crept into ..A's price-earnings ratio had depower during an inflationary pethe picture to an important degree clined from 14.6 to 13.3, and that
riod. The continuance of high tax in
]L957r and it-has become more these earnings with a normalpayrates detracted from the appeal pronounced in the last two years, out would permit a dividend that
cf
Current
income, -and i capital This refinement does not change yielded 5.2% ori the present price,
gains with their limited tax rate ;the basic philosophy but affects Company
B's'projected 1963 earn:became more desirable. With in- selectivity. The public is now seekings resulted im a price-earnings
flation detracting from the appeal ing.stocks in companies that show ratio of .14.4 as compared -to the
of bonds, and with capital gains the fastest growth in per, share current ratio of
18.4, and the esti-®
becoming more attractive
than earnings. With confidence in .the mated dividend for that year, procurrent income, the public in in- future, they are willing to pay : duced a yield of 5.2%. Projecting
creasing numbers turned to stocks many times current earnings in rjust a little further to 1965, we
as a: haven for their savings.
,N
order to obtain higher earnings ,found that en these earnings, Comr
v
.
'(2367)
Merrill Lynch, Piercey
Smith, Barney & Co.
Fenner & Smith
Incorporated
Incorporated
Stone & Webster Securities
Corporation
White, Weld & Co.
Dean Witter & Co.
8
and Financial i*ruvm««
The Commercial
(2368)
Co., R. H. Unilever—Analysis—A,
Lighting
Island
Long
Pine Street, New
& Company, 70
DEALER-BROKER
Co.,
National Biscuit
Company, and Pure Oil Company,
Clevite Corporation —.Review —
Gertsch Products Inc.—MemoranRobert W. Baird & Co., 110 East
dum—Woolrych, Currier & Carl-
York 5,
INVESTMENT LITERATURE
&
Macy
N. Y.
«,
..,
&
der
M.
Kid¬
Irtc., 1 Wall Street
New York 5, N, Y. Also available
is' an
Co.,
analysis of Fairmont Foods
Heyden Newport. Chemical
Corp. and a study of Electric Util¬
Co.,
Milwaukee 1,
sen, 210 West Seventh Street, Los
circular are
ities.
Angeles 14, Calif.
Tobacco
United
States Rubber Co.—Re¬
Hunt Foods—Memorandum—Nor¬
Co., American Machine & Foundry
man
C.
Roberts Company, 625 view—Fahnestock & Co., 65
and Eastman Kodak.
Broadway, New York 6, N. Y.
Broadway, San Diego 1, Calif.
Cohu Electronics — Analysis — Du
Also available is a review of
Long
Huntington Park First Savings &
Pont, Homsey & Company, 31 Loan Association—Memorandum Island Lighting Co.
Milk Street, Boston 9, Mass. Also
—William R. Staats & Co., 640 Vornado, Inc.-r-Bulletin—De Witt
available is an analysis of MerSouth Spring Street, Los Angeles Conklin
Organization, Inc., 120
Wisconsin
Avenue,
Wis. Also in the same
reviews of R. J» Reynolds
AND RECOMMENDATIONS
IS
IT
FIRMS
THE
THAT
UNDERSTOOD
TO
WILL
MENTIONED
BE PLEASED
FOLLOWING LITERATURE:
THE
INTERESTED PARTIES
SEND
genthaler Linotype.
istics of puts and calls—"Puts &
Calls," R. H. M. Associates, Dept.
Brewing Industry—Survey—E. F.
Hutton &
Company, 61 Broadway,
Palmolive
Colgate
—
Co.,
.
Manufac¬
—
New
York
Air
Simplicity
Brake,
minum, Food, Chemical, Drug and
—Watling, Lerchen & Co., Ford
Building, Detroit 26, Mich. Also
available is
a
memorandum on
Airline industries.
K V P
Letter"—Hay-
Savings & Loan Industry—Analy¬
Eastman
den, Stone & Co., 25 Broad Street,
New York 4, N. Y. In the same
sis—Sartorius & Co., 39 Broadway,
& Co., 25 Broad
New York
4, N. Y. Also available in the same
booklet are reviews of Tennessee
turers
Trust
Company, 55 Broad
Street, New York 15, N. Y.
Stocks
Growth
Discussion
—
"Investment
June
letter
Pattern Co., and data on the Alu¬
in
Pen Company Ltd.—
Canada—Report—Reynolds & Co., Report—Peter Morgan & Co., 149
120 Broadway, New York 5, N. Y. Broadway, New York 6, N. Y.
|s
a
discussion of ABC
.Vending and an analysis of Fiber
—
to
erence
Owens
Outlook
—
New
Corporation,
120
Broadway, New York 5, N. Y.
Understanding Put & Call Options
—Herbert
1960
In
Hanseatic
York
letin— H. Hentz & Co., 72 Wall St.,
New York 5, N. Y.
Investment
Cooley & Company, 100 Pearl St.,
Hartford 4, Conn.
~-
Publish¬
Filer—Crown
Dept. A-7, 419 Park Avenue,
South, New York 16, N. Y.—$3.00
FastHne,
(ten day free examination).
York
ers,
*
*
$
—
land 14, Ohio.
New York 6, N. Y. In the same is¬
Seventh
dustry
and
letins
on
& Co., 1
Economic
Ship
Building
dustries Ltd. and Toyo Rayon Co.
orandum—Westheimer
Ltd.
pany,
Japanese Stocks
digest
Nomura
—
Securities
Co.,
Ltd.,
Com¬
Corporation
Analysis —
Eisele & King, Libaire, Stout &
Co., 50 Broadway, New York 4,
61
N.
Folder
—
Mem¬
322-326 Walnut Street, Cin¬
Ohio.
Bendix
Broadway, New York 6, N. Y.
Over-the-Counter Index
—
and
cinnati 2,
Monthly stock
economic review —
and
duPont
Wall Street, New York 5,
American
Mitsubishi Chemical In¬
I.
—
Y.
N.
bul¬
are
Metals
&
Memorandum—Francis
Instrument In¬
Japanese
Y.
.
—
showing
Benson Manufacturing Co.—Mem¬
orandum—S.
an
up-to-date compari¬
between the listed industrial
in
used
the
National
Dow-Jones
Quotation
Chain Belt Company
Loewi
Bureau
East
Averages, both as to yield and
market performance over a 20year period—r National Quotation
Bureau, Inc., 46 Front Street,
New York 4, N. Y.
Profitable
Trading
Calls—Richard
methods
for
in
Puts
&
&
Company—Analysis—
& Co., 122 South La
Street, Chicago 3, 111. Also
Magnavox
—
Review
Mason
a
review of
William H. Rorer, Inc.
f
Chrysler—Memorandum—Eman¬
uel, Deetjen & Co., 120 Broadway,
New York 5, N. Y.
and
port
The Milwaukee Company,
—
Company
Michigan Street, Milwau¬
kee 2, Wis. Also available is a re¬
port on Kirsch Company.
Ford
Review
—
Rhoades
New
&
York
circular
M.
Carl
—
Co.,
Wall
42
Loeb,
Street,
N. Y. In the same
reviews of AMP Inc.
5,
are
and Granite City Steel. Also avail¬
able
reprints of
are
G.
Armand
tions"
address by
an
JCrpf on the
"Stock
Thoughts and Observa¬
given at the annual con¬
—
vention of the National Federation
of Financial
is
available
bulletin
a
Aztec
on
Oil audi Gas Company.
Ferguson—Memorandum
Nicholson & Co., Ltd., 67
Massey
—G. W.
Canada.
Street,
Land
Ltd.
Company
—
40 Wall
St., New York 5, N. Y.
General
tion
on
Corp.
Aeronautical
Memorandum—S t
Public
Service
Corpora¬
Analysis -4- Paine,
are
data
Haveg
Great
on
Co.,
New
American
Fairchild
System,
Industries,
In¬
England Elec¬
Corporation, and an
Raytheon Company.
Camera,
Heli
and
Coil
analysis
of
r o u
—
d & Com¬
available
Northrop
&
is
a
i'
•'
-
*
11
i
>
•<i"
''
-
Memorandum
—
—
Wal-
Co., 74 Wall Street, New
Y.
R.
J. Reynolds
—Bache
&
New York 5,
36
Wall
Street,
N. Y.
Street, New York 4, N. Y.
New York
Report—A.
Infrared Industries Inc.
Data-Control Systems Inc.
Electro Instruments Inc.
Ionics Inc.
Electronic Capital Corp.
Epsco Inc.
Farrington Mfg. Co.
Itek
Corp.
Lafayette Radio Elec. Corp.
Ling-Altec Electronics
Time & Life
Co.,
Foxboro Co.
Perkin-Elmer Corp.
Radiation Inc.
Gulton Industries Inc.
Space Components Inc.
Systron-Donner Corp.
Hermes Electronics Co.
High Voltage Eng. Corp.
Telemeter Magnetics Inc.
Prospectus
on
Inc.,
Building, New York
Shulton Inc.—Analysis—Courts
Co.,
Marietta
11
Street,
N.
Smith Douglas
Company—Analy¬
&
Weeks, 40
Wall Street, New York 5, N. Y.
sis— Hornblower
Sperry Rand
—
Report
—
&
Hanly, 100 North
Street, Hempstead, N. Y.
74
Edwards
Franklin
(Baltimore, Md.)
Baltimore spring
Green Spring Country
of
Club
outing
at
Club.
3, 1960, (Chicago, 111.)
Bond Club of Chicago 47th annual
field day at Knollwood Club.
June 3, 1960
Security
(Connecticut)
1
Traders Association of
summer
outing
at
Meadow
Country Club,
Connecticut
Shuttle
New Britain, Conn.
June 3, 1960 (Detroit, Mich.)
Bond Club of Detroit spring
4, N. Y.
ada.
Analysis—W. E. Hutton & Co., 14
Street, New York 5, N. Y.
Country
Standard
Gilsonite
Analysis—Carothers
Inc.,
Mercantile
Dallas
Company
—
&
Company,
Bank
Building,
1, Texas.
•
June
Register
Co. — Memo¬
randum—Hill Richards & Co., 621
golf
Golf
&
Club, Essex, Ont., Can¬
u
.
3-5, 1960
(Los Angeles,
Traders Association of
Angeles spring party at the
Security
Los
Riviera, Palm Springs.
(Los Angeles, Calif.)
June 3, 1960
Bond
Standard
Essex
at
Calif.)
Wall
Club of Los
Angeles annual
field day at the Oakmont Country
Club, Glendale, Calif.
V
Spring Street, Los Angeles
June 3, 1960
Bond
—
Memorandum
Principal for
Brokers, Dealers and Financial Institutions
—
Club
Field
Day
(New York City)
of
at
New
the
York
annual
Sleepy Hollow
Country Club, Scarborough, N.
Y.
3, 1960 (Philadelphia, Pa.)
Philadelphia Securities Associa¬
tion annual outing at Aronomink
Golf
Club;
tennis
at
Merion
Cricket Club, Haverford, Pa.
as
June 9,
Grace Canadian
Members: New York
Securities, Inc.
Security Dealers Association
25 Broadway, New York 4,'N. Y.
\
•
HAnover 2-0433-45
p
NY 1-4722
Iowa)
konda
Investment
Club.
June 10, 1960
Municipal
York
City)
New
the
Country Club, Rye>
(New York
Bond
Club
of
field day at
annual
Westchester
N.
through and confirmed by
(Des Moines,
1960
Bankers Silver
Anniversary field day at the WaIowa
Y.
June
10, 1960
(Philadelphia, Pa.)
Association 01
Investment Traders
Philadelphia summer outing ai
Overbrook Country Club, Radnor
Security Dealers Association
Township, Pa.
Trinity Place, New York 6, N. Y.
1960
3,
Bond
tournament
request
Teletype NY 1-376; 377; 378
1960 (Ponte Vedra, Fla.)
Southern
Group
of
Investment
Bankers Association meeting.
Spiegel—Analysis—T. L. Watson
& Co., 25 Broad Street, New York
Specialists in Canadian Securities
TROSTER, SINGER & CO
HAnoter 2-2400
;;
June 2-5,
June
&
W.,
Atlanta 1, Ga.
Orders Executed at regular commission rates
Members t\eu> Iork
(New York City)
Traders Association of
New York Bowlirig League an¬
nual dinner at tne Coachman, 13
June
TELEX 015-220
*
June 2, 1960
20, N. Y.
''Microdot Inc.
FXR Inc.
IN INVESTMENT FIELD
June
Corporation-
Gabriel
J.
Currently Active Electronics
Baird-Atomic Inc.
EVENTS
4, N. Y.
Seacrest Industries
the
of
COMING
William St.
Auchincloss, Parker & Redpath, 2
Broadway, New York 4, N. Y.
reviews
Street, New York 5, N; Y.
Security
Aeronautical—Memoran¬
Ryan
South
are
n—Analysis—Her¬
&
Co., 52 Wall
o
Tobacco—Bulletin
Co.,
Underwood
circular
i
n
Stern
E.
bert
York 5, N.
14, Calif.
same
Also in
reviews of
and Collins Radio.
pany
memorandum
Georgia Pacific Corporation—Re¬
Hogle & Co., 40 Wall
Street, New York 5, N. Y. Also in
are
Collier Publishing Com¬
Crowell
Air Shields Inc.
view—J. A.
Primary Markets
bulletin
same
Incorporated,
12 3 South
Street, Philadelphia 9, Pa.
pany
Co., 120 Broad¬
New York 5, N. Y.
way,
the
Gas—Review—
Ont.,
Toronto,
Standard Financial Corporation—
Webber,
Jackson & Curtis, 25 Broad Street,
New York 4, N. *Y. Also available
—
—
.
National
Also
Natural
Western
L. F. Rothschild &
Western U
Analysts.
Analysis—Hill, Darlington & Co.,
tric
Only
Re¬
—
207 East
District
Financial Institutions
Salle
-•-v
Clarkstown (N. Y.) Central School
Bonds—Bulletin—Tilney
C. Allyn
Maltz,
Governor
surance
character¬
Inc.—Mem¬
Purchaser
—
—
Incorporated, 225
Street, Milwaukee 2,
A.
Greenwald & St. John Del Rey Mining Company
Co., 1441 Broadway, New York 18, —Data—Winslow, Cohu & Stet¬
son, Incorporated, 26 Broadway,
N. Y. .■/
orandum
Garden
Co.
Wis. Also available is
Whiting—Trading
utilizing
Fuller
Co., 26
Broadway, New York 4, N. Y.
Averages and the 35 over-thecounter industrial stocks used in
the
D.
:
dum—Herzfeld & Stern, 30 Broad
5, N. Y.
Market
V-1/;;'.
son
stocks
Morris &
14,
Angeles
Los
Street,
* > :•:
Calif.
—
Fisher
Machine
American
review of the Bearing In¬
structure. Also available
Analysis — David
Co., 52 Wall Street, New
Inc.
.
American, Greetings Corporation—
Analysis in current "Investor's
Analysis—McDonald & Company,
Digest"—Yamaichi Securities Co.
Union Commerce Building, Cleve¬
of New York, Inc., Ill Broadway,
dustry, Industrial
Analysis — Penington, Colket &
Company, 70 Pine Street, New
York 5, N. Y.
Federated
Japanese Automotive Industry
are
—
Financial Corporation
e sco
Analysis—William Blair & Com¬
Magnavox
Company—Analysis— pany, 135 South La Salle Street
Dempsey-Tegeler & Co., 210 West Chicago 3, 111.
ston
Corp
—
Study—The Bankers Trust Com¬
pany, 16 Wall Street, New York
15, N. Y.
sue
Metallurgical
Fansteel
W
teresting Convertible Bonds.
Broad
Corporation and Illinois Power.
Fansteel Metallurgical—Review—
Treasury Notes —Bulletin
Corning Fiber -
Exempts — Bul¬
Tax
Standard
—
South Michigan
Avenue, Chicago 80, 111.
Fiber Glass and Ferro Corp.
High Yield
1959 annual report
Street, New York
Oil Company, 910
glas, Gustin Bacon, H. I. Thomp¬
son
(Indiana)
Company
Oil
Standard
<flass stocks with particular ref¬
6, N. Y.
Kodak—Review—Hirsch
bulletin on in¬
Also available is a
Richmond
Sutherland Paper Co.
Company of Waterman
International Nickel
—
cies of 182 countries
Broadway, New York 5, N. Y.
14, Calif.
Survey
—
120 Broaway,
New York 6, N. Y.
FC-100, 220 Fifth Avenue, New
t
u
*
New* York 5, N. Y. Also in the
York 1, N, Y.—$5 (free descrip¬
Business In Brief—Review—Chase
same circular are surveys of KelManhattan Bank, 18 Pine Street, tive folder on request).
sey Hayes Co. and Southern Rail¬
Research: An Investment in To¬
New York 15, N. Y.
road.
" \.
Defense Stocks—Review—Hemp¬ morrow—Review of growth com¬
Craig Systems—Data—Purcell &
panies strong in basic research—
hill, Noyes & Co., 15 Broad St.,
Co., 50 Broadway, New York 4,
Goodbody & Co., 2 Broadway, New
New York 5, N. Y.
N. Y.
■yYork 4, N. Y. Also available are
Equipment Leasing — Analysis —
Denver Airport Revenue Bonds—
reports on Emery Air Freight,
Van Alstyne, Noel & Co., 40 Wall
The Illinois Company,
Mercantile Stores, Atchinson, To- Bulletin
Street, New York 5, N. Y.
peka & Santa Fe Railway, Bur¬ Inc., 231 South La Salle Street,
Foreign Exchange Quotations — roughs Corp., Chromalloy Corp., Chicago 4, 111.
A.■ vv.//
Listing exchange rates of curren¬ Globe Union,
Missouri
Pacific, Detroit Edison Co.—Memorandum
&
Abraham
Members:
>
•
The
Principal Slock Exchanges of Canada
National
25
Association
of Security
Dealers
Broadway,. New York 4, N. Y.
June 10, 1960 (Pittsburgh,
Pa.)
Pittsburgh Securities Traders^Association spring outing at Shannopin country Club.
Number 5956
191
Volume
. .
.
The Commercial and Financial
Chronicle
useful,
Can't Keep on Selling
The Same Steel Products
New York
City
*
.
,
|
—with
imagination
challenging problems confronting
it but I think the keystone in our
progress as a
dustry in the
years
is the
our
vital, growing in-
to come
sale of
products
.
So
and this
—
sales
with
challenge
excitement
test
and for
faced.
nology
L. B.
For
us.
.
,
us in the future.
trouble is that the future
getting here sooner than it used
would be with
The only
to.
writers of financial
A few
col¬
intimating
re¬
been
have
umns
cently that steel is no longer a
growth industry. This
is com¬
pletely incomprehensible to me.
Perhaps if we closed down our
sales offices, called a halt to our
research
and
development, and
just sat back and hoped that sym¬
pathetic people would continue to
order
some
would
fail
of
products, we
But we are
our
to
grow.
than
serious
instance,
our
future
just
how
claim
some
what
amounts?
kets
can
of
our
found
will
fast
we
markets and in
mar¬
new
claim?
Just
matters
are
thought
action.
.
.
.
and
•:-V
to
how
be
''The wise
head;
man's
but
for
in
eyes
the
pro¬
vigorous
..
In the Old Testament
<(
connec¬
expanding American economy?
Yes—these
we
.f;.:.
read:
in his
are
in
you will, is
my text for this paper. I want to
talk
seriously about some of the
Problems of selling steel. If we
do not understand these
problems
fool
darkness."-,, That, if
if
along
a
rabbit
who
marshland
Looking about, he found a place
beside the road where a horse's
hoof had made
soft
walketh
fail to do something con¬
structive to solve them, we do
we
gradual changes
and
slow
improvements.
Yet
now
is viewed
Ours is
ay
as >
the
a
driving
force
of
a
inspiring, depending
choose to meet it.
or
we
into outer
forget these
struggle with our
problems?
Have we
as
we
day-to-day
lost just a little of
have
zeal?
our
J,
We
glamorous, inspiring prodaren't selling pudding.
Someone has to, I suppose, but
for
that
me
wouldn't
be
very
exciting.
Imagine for
in
which
world
moment
a
there
devoid
is
no
steel
of much of
in-
vented
steel
and
volume.
if
the
off
weeks,
obtainable
became
All other
pushed
pages
Then
suddenly were in-
front
indeed
sell
with
of
new
the
it
and
can
best
a
should
trade association
and
do,
the role
played by individual compa¬
In the policy role of the Use
Committee, there would be ap¬
propriate areas like these:
materials
the
to
as
so
define
clearly
product and selling challenges
enthusiasm which
and different and
compete
is-isn't
to*
enough
Next
with
steel
tional
and
large "new." w,hile. stee1'
can
substituting
mere
operates against ate<?
talk for ef-
broad
promo¬
themes . ..
on which member
build.
.
Then—stimulate
.
.
member
com¬
panies to undertake effective pro¬
,the
and
motional
dhSS£ed
do
messages
companies
by and
are
provide
—
approaches
meet
the
other
new
activities
to
challenges
from
compete
with
which
materials
of
clear
distinction
sharp
a
nies.
trai* of identifying what is new
with what is good, and what is
9,^ W1?i, w^at is not so good,
Some of the major materials which
granted.
"leaping
But enthusiasm alone-imporas
is
between what
meeting the challenge of other
materials.
front
better deserves
tant
there
Then there is the basic human posed for the steel industry.
it
lightning"
something
that
Can Do
it perfectly
make
me
—
at all.
Let's not take steel for
Let's
forming
First
collect
information
on
***& philosophy.
Frankly, many
s^eei producers haven't had this in major developments in competing
for
pages
had
we
Let
an aggressive promotion and sell-
in
would be
news
in
What the Use Committee
.
Partly because their suppliers have
dustrial progress we know.
suppose
.
Committee
increasing role in steel's bat¬
an
Competitive materials have
made inroads into steel markets
a
...
the
,
the
intelli¬
tles with other materials.
foresee
_
meet
and
of Steel. This Committee will play
av^ay*
society
a
Executive
no^
deluded by this.
As we a11 know, profit success or
Proflt 'failure m business rests on
a raz6r's edge. This thin margin
of victory can readily be shaved
We
must
we
courage
the Committee to Promote the Use
any'who"^
ph^_ J?.,"*
with
Institute's Board of Directors and
ciacement o£ steel in the foresee
a
uct.
^
sometimes
we
and
can
One good and forthright
step has been the action of this
rePlace steel in the majority
°J.^S tonnage markets. Avail^tnlity, superior technical proper*ies> and cost considerations, if
can
steel.
prod"cts^
,
.
.,
the road.
"I
'
~
thought
to
Each of
This
is neither
announcement
an
The
offer to sell, nor a solicitation of an offer to buy any of these securities.
offer is made only by the Offering Circular.
\ \
\
of
These Securities are offered as a speculation.
NEW ISSUE
has to get out of any
us
sales
.
.
got in the hole and I had
get out."
sort
.
.
'
said you couldn't
you
'
The battle among
for each company in this
industry.
The national need for
sound economic growth demands
it.
The battle of opposing ide¬
'
•
.
•
,
in.
materials makes
hole he may be
•
'
200,000 Shares
'
<
■■■
it urgent
PACEMAKER BOAT TRAILER CO., INC.
raging
it
(a Pennsylvania Corporation)
>
imperative.
...
i
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T.
•
.
,
'
'
,
it
Common Stock
(Par Value, 10< per Share)
<
.
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•
Offering Price—$1.50 per share
.
.
grow
/
•,
around the world
If we fail,
there won't be any friendly rabbit
to pull us out.
Let
the
wise man
turn this
necessity into opportunity — op¬
portunity to improve products . . <
opportunity to serve the world
market better
v opportunity to
ologies
makes
opportunity to make
adequate profits.
To
capitalize
on
Offering Circular Available
on request
nity, we have a
June 1, I960
flearsmt, iHurpljg & Gin., 3ttr.
tfnvebtmenf SPeculitieb
erties, is enormous.
dynamic
served yester-
as
We
.
'*
MAIN
In
austry, and what
how
upon
"Help
more
in^mex6t
man
we
the
overrate them,
a
a
frog.
Ayn Rand's latest book, Atlas
lessons of history
sharply defined than Shrugged, a novel about an earthever
struggle between eco¬
before—that real progress shaking
nomic concepts, we read about the
vory
often
stems
from, radical
invention
of Reardon Metal,
a
changes and new departures. We
metal
far
have new
superior to any the
selling challenges in the
steel
industry, and I say that, as world had known. The implica¬
tion in the story is that this metal
"dividual
companies,
we
need
eu;
insight and new approaches could be the key to the achieve¬
ment of a superior way of life.
know from
some applications, these materials
a^f potent competitors. We can't dismaying
man
as
coming. New forces and
are taking shape.
The
ideas
new
Finally and very importantly—
fective action.
i
■
Everyone ought to read the
utilize the product committees of
Let there be no mistake about American
Iron and Steel Instime," cried the frog—T
the Institute to foster the program.
it—what lies before us is no fancy tute's
excellent first report on
can't get out."
Although this policy group is
Replied
the rabbit,
"I have Utopia built of airy phrases. We "Competitive Materials
Probsmall,
the product committees,
urgent business down the road, can't just tell ourselves to get out j
and opportunities." It tells
which draw widely from the in¬
,■,
but I'll be back in half an hour and sell. We must face up to the
truth about our selling needs.
• ,-^ls
to help you out."
st°ry clearly and .concisely dividual companies for their mem¬
bership, will provide ample opTrue to his promise, the rabbit
Optimism by itself can be dan- *n terms of how to look at the
Continued on page 28
did return—but to find the frog gerously misleading. It has been problem and what steps should be
hopping contentedly about upon
a
this opportu¬
tremendous asset
walk in
itself, for steel is
the
darkness, and that would —steel
be the
height of folly for our vital world's most versatile and lowestcost material for most applica¬
industry.
tions.
Furthermore, the potential
Meeting New Selling Challenges
for improving its strength, its cor¬
rosion resistance, its hardness and
Ofttimes in life we are inclined
toughness, and its aesthetic prop¬
to be
content with
or
in¬
more are
deep hole in the
a
earth, and in the hole he saw
is
materials
gence.
road when he heard cries for help.
snake
basic will steel continue
an
a
in
growth. For
What
steel
hopping
was
was
get out," said the rabbit.
:
"So I did," said the frog, "but a
What other materials will
grow?
there
Once
matters for
are
consideration
tion with
folklore of more
country.
It
like this:
runs
not about to do that.
Obviously there
tech¬
'
the
wonderful things are upon us, and
true at this time that nothing
Do
European
one
competition from
" ls
truths
new
'
of
future is rushing down upon us—
head, wide
visualized
are
Sheet steel
a
and does provide.
fable which has found
its way into the
.
problems of competitive materials
and imported steel have always
been present in varying degrees,
and we have long
known they
is
a
To the
space
This
framework
vancing technology. We can look
back, though I hope not com¬
placently, upon 60 years of this
20th Century as years filled with
future
the part
and
of
one
Wh*le
competitive materials
situation is disconcerting for steel,
a
products that
research
in
can
There is
Worthington
the
instance,
best
of the
selling
our
al¬
been
ways
with
sive
this
has
about
now
good, are banging away at
markets. Some of us have
learned, the hard way, that for
finely designed automobile. Stainless, exquisitely refined, is the
good offense;
a
—
tions.
that offense is aggres¬
us
speak
face
re¬
studies
'
whole
between
graceful bridge, a sinew of commerce, a vital link in communica-
other forms of competition,
in
as
only
our
•*:
*
Selling Pudding
flange beams
which jobs depend. Here,
on
the best defense is
ever
True,
in
is
other
Other metals, and nonmetallic miracles of achievement. But to¬
materials such as plastics, glass day, more revolutionary and more
one
great
"
Steel is not prosaic.
It is a con¬
jobs and the
involves
which
profit
competition
need
only
is
and
whose eyes are in his
of each steel company.
sourceful
have
times.
slack
result
kinds of selling effort on
some
tough¬
most re-
we
in
can
me
all
we
—
and
n 11'''
!
Not
the sellers of vari¬
materials goes on
in boom
and
Let
the most pressing sales problems
sold
expectations.
**'.•* o l
among
times
battle
one
dicative of something that is good
for America—namely, rapidly ad¬
Keen Substituting Competition
ma-
means
indeed.
other materials.
our
filled
people
battle
the
of
est,
misunderstandings
ever
greater
This is delusion
The
us
.
properly
properly.
in Washington may
have about competition and steel,
the fact is that a roaring market
ous
volume
against
few
battle
greater
in ever
What
give
can
to achieve
means
terial progress than we have ever
known
provided they are used
tomorrow be only
hitching post of stagnation.
this
But
now.
will follow.
;
progress may
taken
who
a man
cigarette smoking because he finds
cigar ashes strewn on the carpet,
steel which carries
industry still has many
optimist is
an
and just as importantly,
existing steels, used with greater
engineering efficiency—creatively
blunt primer on
steel
said that
steels,
the need for, and what is, an "intensive" and 4
"comprehensive" selling program to meet substitute and foreign com¬
petition facing steel is layed down by Mr. Worthington. Calling for
a more imaginative product application, greater emphasis on innovajion
to serve existing and potential markets better—the steel head
1»
urges individuals be made specifically responsible for broad strategy
and detailed tactics to meet the selling challenge. It is not sufficient,
he adds, to hold someone responsible for being informed about com¬
petitive materials, nor to confine customers' contact to purchasing
agents when it should go beyond them to engineering departments,
research organizations and anyone else connected with the purchase
of steel. He concludes by listing the selling weapons which are effec- v
five against foreign steel, and the ways to sell more steel.
The
the
port number
.
A
than
Metal.
thinks that his wife has given up
Wortliington,* President, United States Steel Company-
Leslie B.
Reardon
New
the
n
versatile
more
fictitious
9
(2369)
I
say
that
something
we
more
already have
exciting, more
STAMFORD
OFFICE *'/
50 Broad Street, New
West Park Place,
York 4, N. Y.
me
a
copy
of the Offering Circular relating to Pacemaker Boat Trailer Co., Inc.
JNAMJB
♦
•
ADOFFSS
CTTY
»
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{
DAvis 5-3541
BOwling Green 9-5190
Please send
HOUSE
Stamford, Conn.
j
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i i
1 '
■
TFT
STATF
■
The Commercial and
10
(2370)
By Elliott V. Bell,* Editor & publisher, Business Week Magazine
grants
gifts,
in
-
1
problems said to require
promises of our
Bell to. describe the tough, stubborn
Mr.
realistic solution if
of great
era
we
are
*
1933
make certain the
results, to
except for the
build in the free world and in our economy
The huthor fears there may be an economic battle royal
strength we helped
endures.
between the
up
of payments.
chronic deficit in our balance
in the late 1920s there was
Back
good deal of talk about a "new
era." It was to be an era of wide¬
a
spread
prosperity.
lasting
and
nant—pregnant with new inven¬
tions, new skills, fertile with the
of research and
develop¬
seeds
ment.
-
garage
every
the
was
way
politicians de¬
scribed it. We
had
emerged
from the Great
War
with
a
under-
new
standing
f
o
America's
'
•'
'
'
believe
in¬
have
can
we
dustrial might,
we
standards
and
V.
Bell'
life for
our
edge that modern
agricultural
'*
share
America
industrial and
know-how had cre¬
ated a productive capacity adequate to provide all* the people
of the luxuries of life.
,
modern
been
stabilized
and restored to the gold standard,
budgets balanced and inflation (at
least in the commodity market)
cheeked. The United States as the
er
done
be
We
of the future.
but
of that era
demonstrated
its
ability to
pre¬
is that
widespread, although not
ersal, that we had licked the
business cycle and would never
again experience the major eco¬
nomic collapses which character¬
ized our past history.
It all sounds a little familiar,
was
know
a
.
what
happened.
A
came; but it was a fright¬
ful time of economic blight:
A
decade of chronic unemployment,
new era
tne
$1.5
grim saying by the
,
.
the
past,
great
every
war
pression.
has been
pattern
The
War and postwar in¬
flation results in roughly doubling
consistent.
the price
level.
There is
a
period
War
of booming prosperity.
Then the
bubble bursts; depression sets in
of
of
billion
1959
to
began; a long powder-train
bankruptcies, currency col¬
lapse and grinding deflation.
It
30
after 1929 be¬
fore anyone had the courage again
to
was
years
talk about "a
in
Now
new
recent
era."
months
that
phrase has again become wide¬
spread. There is a rather general
opinion that we are at one of
those significant turning points in
history where one chapter ends
and another begins.
Tempers "New Era" Outlook
The
new
question is what will the
era
be like? Will it be a pe¬
riod of endless prosperity such
as
the optimists of 1929 predicted or
a
nightmare such has actually fol¬
lowed
1929?
We've
had
a
spate lately of
speeches and articles about the
soaring 60s. It must be that every
high school sophomore can recite
the story of the coming "popula¬
tion explosion"—how we are go¬
ing to have more young people
of marriageable age than ever be¬
fore and how they are going to
get married, have babies and con¬
sume houses,
washing machines,
refrigerators, automobiles, etcetera,
like crazy. We all know too that
American industry is also
preg¬
Great
the
after
after
our
It
Britain.
for
this
The
end
'
the last
of
the world with
found
war
an enormous
back¬
log of needs to make up—a back¬
log that had accumulated not just
a
effect,
a gold
cities.
Demand
was
limitless.'
And
finance
home
there
this
in
but
1958
it
we
billion.
The
will be
year
to
due
were
the
great
demand.
means
defi¬
little
a
special
some
theless
fixed
price
for
gold
which
at
tional
balance
This
of
lies
era
ahead.
Consider
economic
for
;
-
moment
a
v
the
this
of
consequences
•
change.
The
v
United
States
program of
international assistance has been,
in
effect,
priming
like
huge
a
program,
pump-
conducted
on
I
currency
such it will be
principal
re¬
of the world.
serve
no
longer
enormous
era
be
room
for
of world-wide
carry¬
tion must
may
be made
in
mortgage - debt, consumer
As
on
has
lost
it
measures
domestic
debt and state and
municipal debt.
Abroad, the United
nanced
recovery
States fi¬
and reconstruc¬
done
so
the
freedom
to
or
monetary
to
maintain
fit
sees
stability. For
the first time since the
early 1930s
we
are
subject to the discipline
of the international
Let
me
spell
gold standard.
that
out.
Since
No
country, not
States, can keep
,
;* *»
4.T.
M
even
on
>*
.»
<4
•»,
+
*
they
dollar
deficit
importance or
temporary imbalance
no
It is feared
itself.
cure
that
calling attention to this per¬
sistent large deficit may arouse a
new
of isolationism
wave
or
pro¬
a
There is
new
to
forth
retreat
no
to
isolation
in
today's world. A
high tariffs would
rip apart our political alliances
and mark a crushing defeat in the
struggle * between the free world
open
us
reversion
to
Communism.
United
States
Moreover,
business
has
international.
tional trade
is
in
gone
Interna¬
and
of
in
itself
a
opinion, will the
found, as the
my
be
answer
State Department
Department
vast
Commerce
and
to
seem
expansion of
hope,
ernment
has taken steps to com¬
bat the recession by
would
feel
free
to
follow
again the same anti-recession pol¬
icy
of
drastically
cheapening
unbalancing the budg¬
so
would
in
a
of
cer-
substantial
foreign central
governments
some
almost
and
their
billion.
To
overcome
our
solely by increasing
exports
would
require a mer¬
chandise trade surplus of more
,
than $4.5 billion
^
,
.
*
,
Given the present
policies in the
United States on the one hand and
those
of
Western
Europe
and
pand
next
such
the other, it is most un¬
on
its
export
two
or
surplus
three
years
r
in the
to any
Such
a
course,
if successful,
might only result in seriously dis¬
rupting the economies of Europe
and
Japan, creating
new
interna¬
tional problems as bad as the one
it seeks to solve.
Bear in mind
that at this moment Europe is
unwilling to spend all the dollars
is
earning,
preferring the
money to the goods. The countries
she
that need and want more
Ameri¬
goods are the underdeveloped
countries of Asia and Africa—and
can
they
buy.
do
not
have
the
money
to
Time Has Come for Plain
Speaking
The
point is
does
not
our
adverse
come
chandise' trade
or
from
from
Continued
on
,
*>
ex¬
can
startling extent.
ance
«►
current
rate of deficit
others
There is another
aspect to this
problem. A nation cannot be. a
a
Look at the figures.
Even in
1959, when our : over-all deficit
was $3.7
billion, we had a surplus
on merchandise
trade of over $1
balances
from this market in fear of
dollar
in
exports.
our
likely that this country
the gov¬
case
depreciation.
i
a
that will
of
Japan
withdrew
away
,
just
as
the
aside
matter
short-lived. In each
banks,
the United
giving
a
the end of World War
II, we have
four
recessions.
Each
has
been
comparatively
mild
and
had
outflow of gold as
much good be ended?-
brush
as
Neither,
us.
economic
result
Now, why must our great global
pump-priming program that has
"payments,
narrowly watched
take whatever fiscal
money and
et. To do
*
to
whole
inevitably follow?
Ending Global Pump-Priming
of
powerful force for growth and ef¬
and there must be
absolutely no ficiency. The answer to our prob¬
question about our ability to meet lem will not be found in trying to
instantly in gold, all demands that shut our markets to foreign goods.
ties
think,
*
heavily
States
payments.
circumstance—the ap¬
one
balance
our
we
effective
will ask for gold,- no matter how
well disposed they may be.
There are those who would like
has thus become the
•
that
are
not going
steps to deal
with the long-standing deficit in
take
to
and
expected
to
reach $2.5
billion, perhaps even $3 billion.
No nation, however rich, can con¬
The
practical consequence
of
tinue indefinitely to run a deficit this is
that, for the first time in
of this magnitude in its interna¬ a
quarter century, the
United
of
.
sion
meet
Smoot-Hawley tariff.
Notes Emergence of International
Gold Standard
doubt that the
had the
to
ex¬
reserves
sud¬
to postwar inflation is over; the big
At question will be whether defla¬
liquid assets from the war
and a greatly expanded money
supply, augmented by an explo¬
over
or
order
tectionism— bring
war
and
under constant pres¬
the
reducing in¬
a
global scale. It has financed a terest
rates or running a
period but during the
budg¬
tremendous foreign demand for
long
depression. We
needed
etary deficit or both. In the re¬
American goods, and it has made
cession of 1958, for
houses, autos, television sets and
example, in¬
all the paraphernalia of the good possible the rebuilding of Europe's terest rates were
sharply reduced
industrial plant.
family life.
~
I
and the Federal
budget went into
The rest of the world needed
Obviously when this great out¬ the red for $12.5 billion.
not merely all these things but in pouring
of dollars comes to an
If a new business recession
were
the first years even food to sup¬ end, world trade will lose some¬
to start next
month, it is highly
port life.
It needed also to re¬ thing that has been a prolonged
unlikely that the Federal authori¬
build
its shattered roads,
fac¬ and powerful stimulus. There will,
tories
in
in gold and a large part
they keep in dollars. The dollar
bal¬
our
factors
(including
some
large
European purchases of Americanmade jet planes) but it is never¬
occurred
Napoleonic Wars and
Civil Wdr,* just as it did
after World War I.
in the
With Realism
in
prices ultimately return to
pearance of a large United States
where they were before the war.
payments
deficit
—
would
be
This
pattern
has
held
true
enough, in my judgment, to justify
throughout
modern
times,
not us in
saying that a new and criti¬
merely for the United States, but cal
for
In
it
will
sell
to
us
a
very
foreign central
banks
and
surplus.
governments,
most
between 1949 countries keep only part of their
deficit
$3.7
and
not ended until the Second World
has returned to
change standard. Since the United
States has maintained from 1934
payments averaged about
cit
,
currencies.
gave
years
the
smaller
past will be condemned to repeat
In
portable and country after coun¬
try abandoned the gold standard
and: adopted
"managed money"
policies. They were willing to let
the
external,
foreign - exchange
world
denly jumped to $3.4 billion and
"Those who do not remember the
it."
of
Sterling had been
at too high a
gold
was
valued
gold
one-year
in
that:
George Santayana,
this
1930s,
their
a
Europe following
crisis
1958
ance
had
large sales of
our
to
During the
eminent Harvard philosopher and
skeptic,
coal
Suez
and
have
we
past ten years, excepting
and
substantial
|V
has been followed by a great de¬
doesn't it?
We
There is
to
is
balance of payments
our
1957, when
oil
dis¬
astrous consequences.
v
for
a
it brings
solve—with
oping into big ones and the opinIon
before
truth
the
for
of
the toughest, most stubborn prob¬
lems of the past — problems we
failed
uni
The
back into the foreground some
vent minor recessions from devel¬
'
entering
are
money
are
deficit in
the chief character¬
istic
America. The Federal Reserve had
it will
done
financial and industrial lead¬
Europe, Japan and Latin-
can
I do not believe
by ignoring the
lessons of the past or by trying to
ignore and minimize the problems
will
of
amount
the
(including tourist spending), for
value of their currencies fluctuate
military and economic aid, for re¬
in order to be free to take what¬
mittances and pensions, for mak¬
ever
steps they wished to main¬
ing investments abroad, ° for ■ hll"
tain economic stability at home.
purposes—is greater than the
Now all of the principal coun¬
amount the rest of the world pays ,'
tries" of Efirope " have
us.
'
-■ ' istabilized
pie-in-the-sky.
it
total
means
in
standard discipline proved insup-
:
This
payments.
the
bal¬
international
its
in
of
pression
,
paying to the rest of the
world—for
goods
and
services
we
feeding each other
economic fairy tales of
of the world was lending large
to
that
by
era
sums
we
believe
not
new
new
deficit
Depression.
Great
do
and
case
,
chips
ance
a
life
good
of
believe
I
has.
But I
be
had
kind
another
avoid
...
with all the necessitiesrand many
Currencies
provide
to
constantly improving
people. I believe that
the
in
It
.
in the foreign exchange mar¬
Each time Britain tried to
reflate
In the period of world-wide de¬
is sinking. In economic
language, the United States has a
much of the rest of the world can
knowl¬
the
and
good,
Elliott
continue
of
believe
great economic progress. I
can
ket.
for.
At
.
of
era
an
with
high and
rising
living
level.
sure
to
the
*
that in
assured
been
glorious time ahead we will
all consume more, work less and
rise to higher and higher stand¬
ards of living, chiefly by having
more leisure and more babies—a
fascinating
prospect,
especially
for the young. We've had a large
portion of pie-in-the-sky.
And
lately it's been just a little indi¬
gestible.
Now let me be very serious.
I
in
cars
"
'
the
pot and
every
two
'
have
We
A chicken in
Great Britain.
restored
Twenties
in
,
free" world countries! recommends our
foreign economic aid be confined to underdeveloped countries! calls
on our European allies to take on a bigger share of joint defense
costs; and questions whether we can be a strong leader with a
shaping
asked
late
the
Thirties
early
banks and
governments to keep on accumu¬
lating
dollar
balances without
asking for gold; two, the reserves
of gold
available should it be
.
in
the willing¬ trated
one,
of foreign central
unem¬
present we have left about
mand
for
dollars
seemed
in¬ $19 billion gold, a very large sum, ployment at home, she was faced
with a run on sterling from
and
far
more
than any
other
satiable.
The theory was widely
abroad. Beyond that, it seemed as
accepted'of a permanent shortage country has. However, foreigners
though each time there was an
of dollars in the world.— a so- now hold just about $19 billion
international conference or a dif¬
short-term
dollar assets for
called dollar gap, between what Ox
ference of opinion among
nations,
other
countries
needed
to
buy which they could demand gold.
there would be fresh withdrawals
from us and what they were able
This brings us to the most im¬ of
gold from London, weakening
to sell to us,
!
'
portant reason why our balance and embarrassing the British
It was said
that world trade of
payments deficit is disturbing. Government.
was like a
poker game iii which 1 Any
substantial
conversion
of
Some Britons accused France of
the
United
States * consistently
foreign dollar balances into gold practicing "financial frightful¬
held all the winning cards. The would have
a
restrictive effect ness" by deliberately
withdrawing
idea was we would have to keep
upon
our
economy.
Under the balances
from
London
to
put
giving away chips to prevent the workings of our money system,
pressure on Britain.
The French
other players from being frozen
gold withdrawals tend to reduce said: Nonsense. It was simply that
out of the game.
: v
• <
*
the money supply, tighten credit every time Britain pursued poli¬
and bring about inflation. This is cies the French didn't like, French
The Situation Has Suddenly
the discipline of the gold standard. people naturally lost confidence
": Changed
Under the gold standard, nations in sterling and regretfully with¬
Now we have suddenly realized
which pursued, loose fiscal poli¬ drew their money.from London.
that
the
situation
is
reversed:
There can be no sentiment in
cies, had persistently un-balanced
There is no longer any shortage
budgets or persistent deficits in the realm of international ex¬
of dollars in the world—no dollar
their
international
balance
of change.
If our
allies
disagree
gap. Instead the rest of the world
payments, soon found themselves with some of our policies, there
as a whole is acquiring more dol¬
will be "distrust of the dollar."
losing gold and had to mend their
lars than it is willing to spend;
ways
promptly
or
risk
being If foreign central banks and gov¬
The poker game has shifted. Now
ernments
forced off gold.
get the idea in their
v
it is the United States whose pile
heads that the dollar is over¬
economic progress.* The time is ripe, the business news
of
Conference
-
factors:
two
ness
world's need
the United
could supply that the de¬
States
to achieve, this time, the
publisher concludes, for us to take the lead in calling a new world
economic conference, comparable in scope to the London Economic
-
on
So urgent was the.
for
products
only
of the term ,"new era" after 30 years prompts
The re-emergence
money
without
other
and
aid
-
forms of assistance.
Thursday, June 2, 1960
...
to foreigners forever strong leader of other nations "if
reaching the bottom of it is the victim of a chronic deficit
the barrel. How soon the bottom in its balance of payments.
We saw this poignantly
of the barrel is reached depends
illus¬
its
one of the most remark¬
examples of statesmanship
and generosity in the history of
nations. Since 1945 we h&ve made
available to the world—our erst¬
while enemies as well as our allies
—nearly $80 billion, net, of loans,
tion by
able
Successfully Accomplishing
A Change of Eras This Time
Financial Chronicle
%
*
i
*<
4.
.4,
«
bal¬
mer¬
normal
page
45
Number 5956
191
Volume
.
.
The Commercial and
.
Financial Chronicle
Court
PUBLIC UTILITY
of
fair
a
Iowa
(2371)
Iowa, which established
value
rate
Power &
base. However,
Light has not yet
obtained
BY
the -full
decision,
OWEN ELY
as
ing
only
4.7%
on
it is
benefit
estimated
an
of
currently
this
of
fair value rate base.
a
Iowa Power & Light
Light Co. supplies
natural gas to a
last
copulation of about 433,500 in Des
and
Moines, Council Bluffs and some-.
kw
Power &
electricity and
this
communities in centrsl
southwestern Iowa. The orig¬ erating
and
summer, with a 15%
inal
company,
Gas Co., was formed-
predecessor
The
Des
company
^
-
' ;
Natural
Gas
gen¬
:v /.
•
stock, then
Railways, ..was distributed to
latter's common stockholders.
While Iowa .is noted for its rich
20
million
Moines*
cubic
Gas
area,;
in
feet.
The
a
re¬
Iowa
Power
&
Light has been
selling recently around 35, and
$1.60 to yield 4.6%. Based
pays
and
on
the
earnings
ended
ratio
March
is
*f.
com¬
In
the
12, months
price-earnings
*
•
❖
*
as
&
Light- has
the
article
on
American
&
en¬
follows from the company's an¬
nual report recently issued, which
produces twice asjoyed very rapid growth—reve¬
much revenue
as
agriculture, nues.
;describes the contract accurately:
have, nearly* tripled 'since
while in the company's own area,
"Under,, this { contract
1948. However, the company's net
[dated
farming as an industry now ranks
Nov. £8,, 1959],. the Chief Justice
earnings have suffered somewhat
fourth in dollar volume. Thus the
of the Supreme Court of Argen¬
.because of a declining rate of re¬
economy has become better bal¬
turn. Thus only 5.5% was earned tina is to determine the price for
anced in the'past decade.1
Des
the
properties, which is " to be
on net property last
year, accord¬
Moines is a major jobbing center,
evidenced by- negotiable promis¬
ing to Standard & Poor's, comand area industries include print¬
sory notes payable in dollars over
ing and publishing, food process¬ jpared with 7.3% in 1948. Earnings a
period of 15 years. The net pay¬
in 1948 were $2.09 a share and in
ing, farm implements ■ and light
ments made on account of
.
.
cipal
are
Argentina.
to
be
that
James
the
of
partner, ■ has
Association
and
Statler
Hilton
Hotel,
Fisher's
Island
land,
to
the
13th
instead
New
Club,
York,A
announced.
full
assumed
•
charge
of
firm's
of
the
floor
Stock
firm's
Fisher's Is¬
.
.
•'
•
V \
,
found¬
ing partner was admitted to part¬
nership in January of 1959, and
previously
as
den, son of the
Chicago-based
James R. Cruttenden
the
at
Ex¬
Mr. Crutten¬
Hartford,
of
on
Midwest
change.-'
the
at
,
has
served
and
r
co-specialist since
Jennings Now With
As
firm's
as
partner
MSE
MSE
in
floor .broker
time.
that
charge
the
of
floor
operations, Mr.
Cruttenden succeeds his brother,
PHILADELPHIA, Pa. — Eastman Walter, who resigned his partner¬
Dillon, Union Securities & Co.," ship last week to become asso¬
Eastman Dillon
|
Philadelphia National Bank Bldg.,
William
that
announce
F.
Jen¬
nings has become associated with
them as Manager of the Pennsyl¬
Division
of
Funds
Subject
R.
Cruttenden,
operations
price being at least $62 mil¬
Sales,
Thomas
C.
as
a
their
ciated
with
Midwest
the
newly formed
Exchange-member firm
Wheeler
of
&
Cruttenden,
Los Angeles.
•'
Inc.,
"...
',
Mutual
and
Egan,
the firm
pur¬
.
chase
h anges,
the
prin¬ vania
reinvested • in
$2.06, in the meantime hav¬
together with
ing fluctuated between $1.74 and
coal mining.
; v ;
•
;//
•
•
7, —
7
;Five private utilities now serve $2.08.
about three-quarters of the state, i
The company's major difficulty
goods,
consumer
x c
The next meeting of the Board of
.
.1959
E
announces
Governors Meeting
September. 12th
.to
the
settlement
in
this is expected to be available
Argentina
by
was partially incorrect. We
the next heating season.
quote
Power
La
Stock Exchange Firms will be held
CORRECTION
productionof
corn,
livestock and other farm,
products, nevertheless industry in
requested
additional
supplies from both pipelines and
Iowa
tenden, Podesta & Co., 209 South
Salle Street, members of the
firm's
Exchange Firms
Foreign, Power Co. in this column
in the May 19 issue,- the reference Connecticut,
has
now
the
Governors
7
15.2.
v'.
Iowa
for
pany
the state
with
is
the
the
farmland and;big
associated
CHICAGO, 111. — Robert A. Podesta, managing partner of Crut¬
an¬
Banks
Midwest Stock
earnings. He anticipates
Iowa Power's common •Power itself has a propane peak- 777 77owned by United Light shaving plant with a capacity of
years ago
Exchange,
Joseph S.
..
Pipe Line Company
Des
Stock
that
New York and
>
America, each of which has im¬
portant storage facilities. To serv¬
the
York
nounced
now
7
of
ice
opti¬
New
Broadway,
City, members of the
Mr.'4 Banks
has
operating ratio ment.
recently
.(excluding - income
tax)
from been with Blyth & Co., Inc.' *
about 74% this year to 71% in
five, years.
7
has two gas sup¬
pliers, Northern Natural
103
years
ago; dividends »have been
naid for over 50 years.
Tweniysix years ago the present corpo¬
rate entity was organized, and ten
Moines
reserve.
was
York
Co., Ill
Municipal Bond Trading Depart¬
duction
approximated 297,000 kw
expected to reach ,319,000
other
900
Analysts
Charge of Firm's
Floor Operations
Haupt & Co.
Haupt &
of
year
is
Security
Ira
Ira
mistic regarding the future trend
December 1958, is the
largest unit
in the state of Iowa. Peak load
Iowa
&
Company
Cruttenden Taking
New
President Thompson in a recent
talk before the New York
Society
of
Jos. Banks With
earn¬
return
11
Department
Customers Brokers
Jr., has joined
registered represen¬
lion—the
-
Quarterly Dinner
;
estimated cost of a new
tative.
"77.
7
7.
-{• 7.7:
population while scattered mu¬ ;has been obtaining higher rates
The
Association
of
Customers
;300,d00 kw power plant—and sub¬
Mr. Jennings has been active in Bfokers will
nicipal and REA plants serve the from
the
hold their quarterly
city? councils
of,7 the,
other fourth.,;The private utilities
ject to'the negotiation of;a sat¬ the investment securities business dinner and business meeting on
municipalities which it serves; or
isfactory agreement for Sale of its for the
have set, up a statewide grid sys¬ from the state courts on
past ,10 years and prior to June 8th at 15 William Street.
appealoutput to the. government power
tem to provide emergency power there is no state
joining
Eastman
Dillon, - Union The business meeting will, begin
regulatory com¬
agency,
the proceeds, are to be Securities & Co., was associated
reserves and permit construction mission. The
at 4:30 p.m. with a reception at
company has how¬
used to build the plant and the
of larger and more efficient gen¬
with H. A. Riecke & Co., Inc.
ever
obtained
two
electric : rate
5*45 p.m. and dinner at 6. Reser¬
erating units than each company {increases in 1951 and 1958, -. and companies are committed to. re¬
vations should be made by June
:
.
,
invest in Argentina an additional
3rd. 7
' '
'■
v;
Gittlin Sees. Opens >
increases in 1954 and amount
equal to, 25% of the net
H'..7
The Hon. Paul Windels, Jr., re¬
purchase price. If* -the price to be NEWARK, N. J.—Gittlin Securi¬
cussion of mergers in
the past,
There have been a number: of ■paid for the properties is less than ties Corporation has been formed gional administrator of^ the Se¬
but no plans have developed.
* <
curities and Exchange Commis¬
Iowa Power & Light's revenues price increases by the company's $62million,
the companies will with offices at 850 Freylinghuysen
sion and former Assistant U. S.
gas suppliers and while these have invest the proceeds in other en¬ Avenue to engage in a securities
are
65% .'electric and
35%
gas.
District Attorney will be guest
Residential sales provide 35% of not been finally approved by the terprises in Argentina, outside the business. Officers are B. Morton
speaker. His subject will be "The
electric revenues, rural 12%, com¬ Federal Power Commission, they electric power industry
v t The Gittlin, President; Fay L. Gittlin,
remained
in
effect, under companies have received, thus far, Secretary; and Ruth M. Gittlin, Customers' Broker and the S.E.C."
mercial 25% .-and industrial 22%. have
Treasurer.
•
; 7 '
;
7 Domestic business,
including bond and reduced the company's a * down payment of 150 million
would
be
own."
There has been
able
to
build
its
"on
some
two gas rate
dis¬
1959.
,
..
■
.
.
earnings
househeating, accounts for 60% of
the
from
gas.
business.
receipts. While there is natu¬ However,; last winter the company
rally competition between the two •obtained an increase in- gas rates
services, it is interesting to note amounting to 23%.-of gas-revenue
pesos
that
;
of'172 million pesos relating
materials and supplies."
Form Kurz-Liebow
to
Kurz-Liebow
gaging
the
company has set up a —subject to refund if the FPC
promotional rate of 1.75c for elec¬ does not allow the various > in%
tric heating even though the an¬ creases put in effect by the pipe¬
nual cost to a householder would lines. With this increase the com¬ ORLANDO, Fla. -r- Southern Se¬
curities Specialists, Inc. has been
run about two or more times that
pany was able to make a better
formed with offices at 25 South
of
7
using gas.
for the 12 months
31,- 1960, earnings
$2.31 compared with
generating
capacity,
four
new
the
$2.06 reported- in calendar
generating units totalling 250,000
kw having been installed since 1959.. For the calendar year 1960
.about $2.35 is estimated.
1950, more than tripling the pre¬
vious
Iowa utilities are now obtain¬
capacity. The last unit of
-The
showing,
company
has
now
and
March
ended
ample
increased
to
Form J. Ezra Co.
:
at the time of signing the
contract and subsequent payments
gas
from
Form Investment Co.
in
a
is
Co., Inc.,
en¬
business
securities
at
offices
19 West 44th
St.,
City. Officers are Her¬
New York
bert
&
Joseph Ezra & Co., Inc. has been
Kurz,
president;
Harold
H.
Liebow, secretary-treasurer.
Main Street to engage in a securi¬
Now
ties business. Officers are William
formed with offices at 176 Broad¬
way,
a
New York City to
conduct
securities business. Officers
are
Joseph Ezra,
President; V. Ezra,
Secretary; and Philip Trager, Vice
President.
Form Selected Investors
Corporation
A. B. Morrison & BROOKLYN, N. Y.—Selected In¬
Q.
Lockwood, . Jr.,
President;
Co. Inc., a corporation, is continu¬ vestors, Inc. has been formed with
Henry J. Brett, Vice-President;
offices at 1812 Cropsey Avenue, to
and Mrs. Lucilee G. Showker, Sec¬ ing the investment business of A.
a
securities business.
B. Morrison & Co. Officers are A. engage in
retary-Treasurer. Mr. Lockwood
are
Joseph
Kirchmar,
B. Morrison, President and Treas¬ Officers
was formerly with Merrill Lynch,
President and Secretary, and Ber¬
90,000 kw, placed in operation ing some benefits from the Fort
Pierce, Fenner & Smith and Good- urer; N. M. Seaber, Vice-Presi¬
at the Council
nard Asher, Vice-President.
dent and Secretary,
Bluffs Station in Dodge decision by the Supreme
body & Co.
This announcement is neither an
to buy these securities.
The
NEW
.'
ISSUE
offer to sell nor a
solicitation of an offer
offer is made only by the
'
:
Prospectus.
MIAMI, Fla.
This announcement is neither
7; 7'
an
—
nor a solicitation of an offer to buy
made only by the Prospectus.
offer to sell
these securities. The offering is
7
'
New issue
110,000 Shares
917,835 Shares
pacific coast properties, inc.
FIRST MIDWEST SMALL
BUSINESS
INVESTMENT COMPANY
Common Stock
(Par Value $1 Per Share)
Common Stock
The
Company
Stock
of
holders
of
aggregate
Food
of
Time
pursuant
to
GIANT
Giant
917,835
scription price
York.
the Common Stock and Preferred
("FOOD GIANT"),- and to the
stock options, Rights to subscribe for an
is offering to the holders of
FOOD
on
of
employee
shares
$10
of
the
share.
per
Company's
The
Rights
Common
will expire
Stock at the sub¬
at 3:30 P.M., New
10, 1960. The Underwriters may offer Common
terms and conditions set forth in the Prospectus.
June
the
the
nouncement
the
Prospectus
as
be obtained in any State in which this an¬
only such of the underwriters, including
lawfully offer the securities in such State.
may
is circulated
undersigned,
PRICE $7.50 per share
Stock
Subscription Price $10 per Share
Copies of
(Par Value $5)
INC.
MARKETS,
Copies of the Prospectus may be obtained from any of the underwriters
only in states in which such underwriters are qualified to act as dealers
in securities and in which the Prospectus may legally be distributed.
.
'
CRAIG-HALLUM, INC.
from
may
PAINE, WEBBER, JACKSON &
IRVING J. RICE & CO., INC.
Bear, Stearns & Co.
May 31, i960.
WOODARD-ELWOOD CO.
.
C. D. MAHONEY &
CURTIS
HAROLD E. WOOD & CO.
KALMAN & CO.
CO.
-
-
(2372)
'*■>
-
•'
employees, the public, and
our
Get Public Understanding
Lists
believe
We
Ideas
Ten
this
a
Commandments of
for Republic
Ten
of
set
Communications
of the surest ways to obtain labor peace. Mr. Patton lists 10 Com¬
mandments of Communications for management and relates results
« t.
He points out that this
involves everyone, from the President and Chairman on
management. I am. going to list
them, and then comment briefly
on
some
of the thoughts which
led up
public relations and adver¬
tising departments. Concerned with the lesson learned in the past
strike, i.e., attitudes do not change overnight, Mr. Patton urges the
communications program be used for prevention and putting out
fires as well as achieving an understanding of the basic vocabulary*
down, and not just the industrial relations,
to them.
be
must
Communications
(1)
part of the job of every man on
the management team.
a
(2) Seek to improve your com¬
employees
munications with your
day in the year, not merely
when trouble is brewing.
every
In the early days of
the steel in¬
dustry,
communications
was
a
chore that nobody liked, and few
people bothered about. Today, I
would
all
we
agree-
that
to build a good program,
create a solid foundation
of
communica¬
tions
but
an
obliga¬
to
tion
As
our
employees,
our
customers
be
result
a
not only
tions.
considered to
(6)
were
we
job
in
areas
experience, but we tackled
media—radio, TV and motion
you
vious
the
pictures—and came out confident
that we were communicating in
of
our
our
which our employees and
public would make an effort
ways
free
the
T. F. Patton
enterprise system.
to
We must communicate, because
must create broad understand¬
see
hear, and hopefully, to
or
\
understand.
and in effect we will be throwing
the American economy open again
competition, and its effect
ing of business policies and prob¬
lems.
If
we
ourselves
on
fail,
h^ve in
past. Our right to manage will
come
to
find
the defensive in the
future even more than
the
will
we
under
we
heavier attack,
even
the destructive tinkering of the
bureaucrat and the
the
exploitation of
Many
equally
and
earnings.
well
that
labor leader.
the
we
union
demands
about
told
people
chances.
our
that
feel
during
pessimistic
been
complex
last
the
failed
have
I
labor
the
trous
made
for
the
steel
the
contrary,
the
to
earth
to
so
bring
in
its
indus¬
I
and
—
notable
even
there
Public
don't
Understanding
Gained
Utopias in the
convinced that if
see
any
we
those
whom
to
can
another,
deeds
your
will
not
speak,
otherwise you will be talking to
yourself and those who already
agree with you.
r\
ideas
These
obvious
to
make
few
a
the
In
offer to sell
securities.
or
I
Prospectus,
copies of which may be obtained from the under,
signed or from The Marine Midland Trust Company
of New York, the Exchange Agent, 120
Broadway,
New York 5, New York,
The
Exchange Offer will expire at 3:00 P.M. Eastern
Daylight Saving Time on June 30, 1960, unless ex¬
tended by The Buckeye Corporation as
provided in
the
the
on
had
early days of
which
our
com¬
Republic,
error
of
letting the men in industrial re¬
lations, public relations and ad¬
vertising carry the entire respon¬
and
was
a
serious mis¬
have
we
the
of
all
gradually
Prospectus.
management
communications
Today,
up
from all
of
program.
of top represen¬
principal depart¬
the
company, ties the
together and guarantees
communications
the
men
in
Communications Com¬
our
stemming
top management level.
in every department are
kept informed of communications
problems
Corporation is offering shares of its
Common Stock in exchange for all of the outstand*
ing shares of the Capital Stock of King Bros. Pro¬
ductions, Inc. at the rate of one share of The
Buckeye Corporation Common Stock for each three
shares of Capital Stock of King Bros. Productions,
Inc. upon the terms and conditions set forth in the
Prospectus.
any
have
munications program in
we
made
the
common
Key
The Buckeye
exchange
comments
we
to these commandments.
up
from
Share)
The Exchange Offer is made only by the
seem
pretty
dyed-in-the-wool
may
the
to
as
communicators, but I would like
good
'
an
be
words
your
well
as
ments
'
not
will
believed.
be
Listen
(10)
tatives
Common Stock
This Notice is
are
broadened and deepened the par¬
Buckeye Corporation
per
words
your
(9) Do not speak only with
words, but with deeds, also; for if
your
words say one thing and
take,
of Capital Stock of
(Par Value $1
your
and
partmental
word
on
make
it
plant
and
de¬
spread
the
progress,
briefings
down
whenever
managers
events
District
necessary.
carry
and
the
ball
locally, and work through their
supervisory personnel to get the
message to the men, and from the
men
upward,
as
well.
We always
try to remember that good com¬
munications is a two-way street.
By
the
arose,
time
the
company had an
do in getting the
needed.
even
was
on
Nobody
crisis
in
the
important job to
story across, and
every supervisor in
ments
1959
department
every
those depart¬
if
he
was
call
was
excused, not
the Chairman and the Presi¬
dent.
„
THE BUCKEYE CORPORATION
16 East 34th Street, New York 16, New York
May 27,1960
that
pany
facts, and repeat them
We think this is
tions, and pound them
ways
with varia¬
home over
and over again until the attitude
slowly, reluctantly
begins to
change.
guilty
used
I
gether,
a
Lesson
program moves.
of
the
Last
Strike
The strike experience
taught us
another lesson, too. Attitudes
depreciation problems, apd the
push factor in inflation, for
example, we are severely handi¬
capped by the lack of understand¬
ing on the part of the audience of
wage
well.
Republic—and
all of you have come to
sure
am
In
about
conclusion
same
One of the most
confirmation
the
of
be
standing.
we
we
closer to
ployees through
tions
program,
realized
we
fear of the
with the
v
self
that
—
same
it¬
that
company
first
place, that paid their wages last
year, that has given them more
and
more
benefits, that offers
their
provided
in
jobs
the
audience
of
ing. For
when
with
one
thing is clear. Only
behind company
likely
to
the reason
understand
men
instead
understand¬
policies are they
those policies,
support
of
blindly
following
is
it is
but
slightly
more
it
ways
It
is
has
important to un¬
their
aspirations.
A
derstand
man's
ambition
himself
for
and
his family is his proudest posses¬
sion. It is what can make him a
hard
worker
employee.
him
and
just
we
can
tie
and
not
the
a
long
the
employees
basic
and
a
if he feels that
have
been
on
have
We
must
with
we
way
of
company
we will have
in solving the
of
modern
labor
relations.
Republic had
every
put to use.
Listen
needs,
thinks.
ourselves
continued
come
a
but
long
way
to
decision.
taking
when
faced
deadlock
forced
in
make
we
with
the
1959,
we
a
How far
funda¬
should
audience into
confidence—should v/e push
ahead to the very limits of frank¬
our
our
ness, or should we stand still and
wait it out?
Our decision was to push
in every medium
ahead,
to us
spoke as frankly to our em¬
ployees and to the public as good
business
practice
would
allow.
open
we
Obviously
we were not going to
give away trade secrets, or throw
books open wide to our com¬
our
petitors,
been
have
know
concen¬
what industry
on
what
and
We
management
little
too
about
true
its
weapons,
objectives, its
weaknesses and
We need to listen with
interest
to
union
We need to exert
analyti¬
propaganda.
greater effort
employees
saying and thinking. We need
to have a clearer picture of their
picture of management and man¬
agement
policies.
We need
to
know why they distrust the com¬
pany and its policies—particularly
its economic policies—and regard
the union as their champion.
find
to
what
out
a
our
are
but
short
of
these
ex-
are
beginning to get these
to know
answers, and as we learn
employees better, and devote
our
increased
effort
to
improving
their
understanding of business
policies and practices, the great
barrier
between
employee and
manager will narrow. Employees
will
go in
Observe
and
strengths.
that
we
We
the union—its
communications,
mental
case
Finally, we must learn to listen
and to observe, as well as to com¬
down the jroad to more forthright
were
constantly
communications
our
can
Must
We
alternative.
no
plead
and
tool
at the ballot box,
us
airwaves.
the
on
We
ambitions
the
to
union,
problem
found
to be,
or
our
gone
cooperative
also make
worker
man
aspirations
ignored.
thwarted
If
can
rebellious
a
militant union
his
a
it
But
critical
industry—passing
for
ment
cal
equally
less
powerful. In some
become judge and
judg¬
and
trying each "case" of labor-man¬
agement conflict in the press and
jury
the
union line.
a
actions than it used
our
trating too much
afraid, and how
are
fear
on
huge and unseen audience
watching our every move. The
municate.
why they
than
stage
More
are
a
out
combat
and
with statements
as
we
profitable
employment in the
years ahead.
Little by little we are finding
to
we
attitudes
own
reports.
before
with
stable,
their best chance of
them
well
as
annual
ever
-
dealing
company
V
everything
with
but
our
and
offs, the speedup, the loss of sen¬
iority, the loss of dignity and
personal freedom, and a hundred
and one other spectres out of the
.V:Y.' V.
part, but
remember, too, that
communicate not only
with
actions
ever
uns&er^ rgbblq rouser in the
crisis was fear: fear of lay¬
■'
'
'
1
do—with
the company.
We found that we were
V
words,
The
past.
on our
We have to
clearly that their fears, as
well as their aspirations, are pow¬
erful motivators in their attitudes
1959
diligence
effort.
more
toward
to find this com¬
It will require a
the results will be well worth the
communica¬
our
alone
great deal of research, and a great
em¬
our
not easy
language.
deal of
-
came
we
let
constructive
language barrier, instead.
a
It is
some¬
mon
As
most
we made in 1959 was that
understanding may
always be ignorance. It may
not
have long sus¬
pected:
our
employees have a
deep desire to identify themselves
with the company, and a strong
tendency to be loyal to it, union
efforts to the contrary notwith¬
that
thing
the
of
the barrier to
out of 1959
discoveries that came
words,
concepts.
findings
K/.'
heart-warming
year.
was
One
the
in
day
working
every
basic
the
job
and will continue to be a
now
for
basic
the
even
your
company—communications is
own
encouraged
going to be hard to achieve. In
talking about productivity, and
labor relations, but it
more.
no
Semantics
were
is
primarily to put out
fires, rather than prevent them.
This has been particularly true in
applies to public relations as
of
we
-
hand, we were forced to a
sobering conclusion on the other.
In some areas, real understanding
program
the field of
'1
-•
one
on
the same mistake. We
our
communications
of
have
while
But
has been
think the entire industry
:■
Problem
A
,
mistake—and we
bad
a
business.
have been
And that is where we
making
of the surest
one
help bring about labor
and a favorable climate for
to
peace,
*
•
and
When you get
everybody in the
management
team
pulling
to¬
said
I
people as possible the reasons be¬
hind our policies, the goals toward
is being unfair, even if he
is dead wrong,' that
is another which'we are striving, and the
obstacles that stand in our way.
matter. You have to show him the
fact.
barren ground.
directed, otherwise you
talking to yourself./'
program
"
on
Communicate in simple
language, understandable to all of
mittee, made
:
otherwise
practice,
ness
words will fall
found that this
296,236 Shares
I
the
sibility of telling our story to our
employees and the public.
We
King Bros. Productions, Inc.
The
in
basic facts of economics and busi¬
ticipation
;
public
the
and
ployees
experiences
EXCHANGE OFFER
To Holders
we
progress.
offing, but I am
we
try
hard
enough
of
events
and
communicate,
in the
area
of local working
Can Be
try. I do not share that pessimism.
On
to
Convinced
government; * that
experience was a disas¬
defeat
able
wages
(7) Strive to educate your em¬
led
the
in
1959
on
conditions
negotiations we did not reach the
steelworkers, the public or the
officials
jobs
them
were
down
on
sold
cost-ofliving. We failed only where we
Finds Progress Made
Some
We
time.
(8)
.
of the companies were
hard
at
work,
and
I
would like to point out again that
by our combined efforts we sold
the facts on inflation, and on the
effect of wage pressure in mak¬
ing inflation a threat to the econ¬
omy. We sold the facts on foreign
we
Seek to
on
part of it was favorable. As a re¬
sult,
we
are
more
determined
than ever to get across to as
many
give
can
you
it
<
.
was a wise
decision.
before, our mail was
substantial, and by far the greater
he is wrong, he
change his mind about that
But if he feels that his com¬
will
C',
promote public
of your
policies
problems, for if you do not,
will regret it at bargaining
and
new
price
:
in understanding
considerable pre¬
had
we
•
and
fact,
a
proof
the
ployees, for out of understanding
comes wisdom in industrial rela¬
at
survival of
life.
of
his¬
our
and the
public
large.
It
may
even
be
employees'
your
a fact
Seek to understand the
fears and aspirations of your em¬
we
effective
an
which
as
,
able to do what
stockholders,
union
(5)
for
tory.,-
our
Accept
(4)
labor
engaged
in the
communications effort in
need,
a
>
,
We think it
As
feels about something.
reasonable man is wrong
But
example, we
most intensive
Republic,
If
company.
understanding.
In
not
is
a
can
underestimate the
not
Do
(3)
intelligence of your employees, or
their desire to be loyal
to the
get the facts to the people—that
when we spend the time and the
money
only
that the
me
learned how to
steel industry has
we
think
convinced
the strike
the line. /
way a man
him
strongly in
so
tremes, we pretty well laid
takes
It
overnight.
change
don't
time, and hard work — constant
WOrk—to correct an error in the-
about
Republic that we have followed
Moses' example and worked out
ployee and public understanding of its policies and problems as one
obtained from their usage in his company.
the
politicians.
Cleveland, Ohio
steel works charts the securance of em¬
Head of the third largest
under¬
broader
much
a
standing of the facts of business
and economic life in the minds of
Value of Communication to
By T. F. Patton,* President, Republic Steel Corp.,
.
>T
-
achieve
program
Thursday, June 2, 1960
...
v..
t
*
,,
and Financial Chronicle,
The Commercial
12
begin to appreciate the fact
has harnessed
science and engineering
to the task of raising steel indus¬
try productivity, and that it is
rising productivity — not union
pressure—that enables companies
management
capital,
to
pay" better wages. They
to understand, too, that
come
management—not union
will
good
pressure
for the record of
improvement in steel industry job
—is responsible
working conditions.
realize these things,
peace
and
cooperation between
labor and management becomes a
practical goal.
security
Once
and
they
optimistic about our
the public s
understanding of the industry s
I
also feel
chances for improving
umoer
oiume
and
and policies. If we can
the facts on other con¬
troversial subjects as well as we
7 on inflation we have nothing
worry about. And if the public
nroblems
Set
the public. That is
certainly
plan in Republic, and I know
our
across
that
each of your
companies
similar plans under way.
It is
going to be
♦n
is
but
the politicians will be
with us,
sight
WTheUonly° thing
do
we
of
the
it
a
twin
Scherck, Richter
difficult job,
well
we
goals
are
of
...Ahead of the News
in
labor
♦An
the
address
68th
General
the
Iron
and
at
the
American
New
ter
Meeting of
Institute,
Steel
York, May 26, 1960.
the
fiscal
year
1958 the
District Directors of the Inter-
64
Revenue
Service
made
-
-
t1
*>1
■
v
/
i
t. 1
f...
f
' „l
As
assess-
approximately
seized
and
or
By Roger W. Babson
i.
advised by Mr. Babson
consideration in preparing for
should take into
a
the
to
attention
calls
comparison
non-hasty
attractiveness
bonds
of
made r between
be
and
suggests
a
of good ;
current yields
stocks and bonds.
1
,
the international situation have been covered in
in the last two weeks. I especially refer to the reaction of other
countries to the U-2 spy incident—particularly those countries
in which we have
bases—and "the subsequent collapse of the
Summit Conference.; I now want to suggest what conservative
investors will take into consideration in preparing for a continued
ideas
My
cold
—
on
perhaps
and
"colder"
a
—
war
United States.
Russia
between
7.
yer
will
war
play
safe to
avoid
unnecessary
Bonds
worry.-
it risky
\'/r- '
be
to
Railroad
\
3%
Company
due 2047.
coupon
A
1985.
of
7e 777
assessment
w°uJd be v01l However, that is
men,,
jeopardy
fbp
and
tion in the
no-
tav
&
]
Company of
Houston
prior
'
Qffthe trading
" 1 department of
Charles W. Hahn
Ratchet, Pierce & Co. in Houston.
Qmil"
M
J OIIIS
WIPk
1T*TT!
P
World
■««
oVthe sfatuTe lf
Revenue
Service acquire
tremendous
retary or his delegate believes that
What the collection of any tax (other
than income, estate or gift tax)
power?
/
....
making jeop- under the provision of the Inter-.
ardy assessments is found in Sec- nal Revenue laws will be jeoption 6861
(a) of the Code. This ardized by the delay. This would
provides that if the Sec- cover all types of miscellaneous
retary,' or his delegate, believes taxes.
7 ' ,V
' •
that the assessment or collection
Section 6863 provides that when
of
1986.
deficiency will be jeopardized
a
by
c1PAmTT ™
III.
a
As
'
Dexters
T
Ruiiding''has
as
resentative
an
with their firm
"
These
Unite/Pstates
Other Attractive
"
country.
trict
a
jeopardy- assessment
Th^nfhnrftv
has
Ravaj Academy,
g
1932
y
Considerations
;
XInCeffect nowfif^
believes'
Director
Disthe
that
amount of the tax assessed under
jeopardy assessment.
7
an
offer to sell
or a
of these securities. The offering is made
Following an early career in
War II. Following World War II
be was with tte amphibiou.
I°rces» H. S. Atlantic Fleet, and
during the Korean War commanded a Navy oiler in the Far
F3®4'7?7ge,d ln ffufellng ca" 7
^sk
at sea off the coastof
Kwjea. He has been connected
with Naval Intelligence both in
Alaska and the 13th Naval Dist
4n®t f°r.slx yeat-s0"'Llafil
rSSK
fty bf°?e
Ifln
Qnti«r«»
^ie'in^upron!1rati0n
of the Pan-
tbe operation of the Pan-
Part
anJf
."eof &ment S
studies of inve
.
Lester, Ryons Adds
(Special to The Financial
Chronicle)
- John R.
Coutts hasJseen added to^the^staff
LOS ANGELES, Calif.
changes. Mr. Coutts was formerly
with Walston & Co., Inc.
solicitation of
an
offer to buy
June 1, 1960
««'Vi
is,
.
any
only by the Prospectus.
NEW ISSUE
t.-i'
-The-properties of the telephone company, and also of certain
railroads, are so well diversified over large areas, and in many
cases own such valuable mineral and oil rights, that they should
be attractive
possibilities for investment. Even if their terminals
were
temporarily disrupted, or even destroyed, they would be
quickly restored. Hence, I again cite the American Telephone &
Telegraph and the Northern Pacific bonds as offering excellent
security and add as further impartial examples a number of other
.
250,000 Shares
»'•'<
^ f
...
f
T
< St
Aero Industries, Inc.
COMMON STOCK
(Par Value 25<)
railroad and utility issues.
These
banks
rate
are
listed
their
according to Moody's rating, by
bonds.
from par:
•
All
are
-
7-
selling
-
at
Price
of 1976—
Metropolitan
._
-
—
Edison 27/ss of 1974
Niagara Mohawk Power 23/4s of 1980
Northern States Power 2%s of 1977—
AAA
AA
AA
AA
Ohio Edison
23/4s of 1975——
Pacific Gas & Electric
23/4s of 1981—
Cities Service 3s-of 1977
!
23/4s of 1996
A
3s
BB
Northern Pacific
of 2047—
AA
A
4.11%
3.78%
3.67%
75
78
75
80
AA
^outhern Pacific
3.65%
3.62%
3.21%
3.77%
73
76
75
AAA
AAA
;
•
$3.30
per
Share
Current Yield
72
76
78
73
Rating
Southern Bell Tel. 2%s of 1985
Virginian Railway 3s of 1995,.
Price:
v.
■
American Tel. & Tel. 2%s of 1986
AAA
Illinois Bell Tel. 23/4S of 1981——AAA
Socony-Vacuum 2M>s
which most
substantial discounts
-.•■ ■■
.
59
60
-
•
,
3.50%
3,53%
3.67%
3.75%
4.66%
5.00%
Class of
been
Secretary or his delegate, a bond
This announcement is not
r
■
the
Navy as a Rear
Admiral and is a graduate of the
ing jeopardy assessments, while in an amount equal to the amount
originally resting in the Secretary of the tax to which the stay is of Lester, Ryons & Co., 623 South
of the Treasury, has through the desired. Previous to the 1954 Code, Hope Street, members of the New
process of delegation been given thg
bond • had to be
twice the York and Pacific Coast Stock Ex-
time, it is well to give some considera¬
possibility that World War III could start before most
""'-V
The
retired from
appointee
shall
he
considerable length of
tion to the
""
^
announced
S°rt°" ototment of James A
FlenniSen
investment rep-
the deficiency, together with
large city that might be bombed in case
investors usually buy bonds to keep for
good bonds mature.
,
Qniithwinir
Wocu
^ar
immediately made, the collection of the whole
or any amount of the assessment
interest, and shall make no- may be stayed by filing with the
delay,
-any
include the leading telephone company,
companies, and two excellent utility companies. -
War
:
kJlJU-Uli VY IvlY. x. 11 ill
Personally, I would rather buy the bonds of an electric power
which serves smaller communities than one which is
of
:
•
t
IPllfllKftTl
p
company
a
and
thereto
Manager
was
C^e ^ns°t7he ^
section
above examples
primarily located in
of¬
ficer of Crerie
"
questions
The authority for
These
;'-'v •
Electric Illuminating Company 2%% coupon due in
These are selling around 71 and yielding about 3.85%.
two railroad
the
to
re¬
an
nn
I do aboutit?.
can
2001,
Edison Company 2%% coupon due
selling around 70 and yielding about 4.10%.
The
the
tavnawr
series
such
v
Commonwealth
Cleveland
assistant
making
thp
Internal
.
selling around 60 and yielding about 5.00%.
are
in
fn
-assess
are
former
Jeopardy assessments of taxes
do this to me without a other than
income, estate or gift
hearing? ,1s such action in viola- taxes are provided for in Section
tion
of my constitutional rights 6862.
This section provides for
of
due
process?
How does the immediate assessment if the Sec-
Chicago, Rock Island & Pacific Railroad 2%% coupon due 1980.
These are selling around 75 and yielding about 3.80%. 7
«
the provisions of the statute and
did.not issueittedehciency letter
within 60 days from the assess
ernment
Illustrations
Telephone &...Telegraph Co. 2%% coupon due
These are selling around 72 and yielding about 3.65%.
Northern Pacific
District Director failed to follow
comes
assessment is made—can the Gov-
.
American
"belief"
period
limiimmedi- tations make more than one jeopately arises in the mind of the ardy assessment covering one intaxpayer against whom a jeopardy COme tax liability
•
anticipated for the time
being by the considerable discount at which bonds are selling.
This discount has primarily been due to the increase in money
rates. These higher money rates, however, have been largely, offset
,by the discount at which many good bonds are selling. If you
have any doubts, compare their current yields with the yields on
...'
cently
in
is
Mr.
was
,
However, I believe that inflation has been
A Few Bond
ment depending upon the
assessment and levy was made
security, perhaps better than good stocks will give. Of course,
some people will advise against buying bonds for fear of inflation.
good stocks.
tax
from
navpr
good purchase, at least they .will give good
a
Hahn
rector's issuing another jeopardy battleships and, ..destroyers, Ad-^
had
nnnnrtnnitv tn nrp"
assessment in the event he has nnral Flenniken entered the sudS™ <'Pu^^'EifnrP the
sent his side of the case before thp failed to issue the deficiency let- marine service in 1935 where he
within 60 davs He mav within
served until the end of World
There will be no
7
may
their
donTwfthl"an^arine 11
will think
of
Gould, Washington law-
and
rectors
a
this year.
collection
Ex¬
change.
that the assess-
so
The action of the 64 District di-
the
and
good time to take advice from some banker or
an investment counselor in whom you have faith.
Sensible people
will not get panicky and rush either to buy or sell stocks;.-but
It is
continue
Stock
for
Attorney General.
buy equities at this time. Money in the bank will appear to them
better just now than stocks or possibly undeveloped real estate.
It looks as if Mr. Khrushchev may be calling a turn in the bull
market.
or
frozen
believe
•
investors
exceptions, most
to
information
Michael
tirp
few
ment
available
were
unable
This
What Should Be Done About Equities
With
to
Section 6861 (b) of the Code
requires that when the jeopardy
on his property, making necessary
assessment is made, a 90-day derepairs, paying real estate taxes ficiency letter must be mailed to
and from using his funds for the the taxpayer within 60 days after
protection of his property and for making the assessment. This is to
ordinary living expenses.
It is enable the taxpayer to file a petiobvious that a jeopardy assessment tion in the Tax Court to deterhas far-reaching and often disas- mine the actual tax liability.
It
trous effects upon the taxpayer.
would seem, therefore, that if the
Convinced that inflation has been gener¬
bonds for the time being, the financial advisor
ously discounted in
them
taxpayer prevents him from
paying fire insurance, premiums
continued cold—
of
the -Midwest
of the
possibly colder—war.
and
assets
tax-
accounts
bank
be
^hiin7S7S 7 ? normalthe assets tor.their particular District Direcmanner, of
The action of freezing
what they
on
their
funds
no
were
are
their
2,500
•
will
collection
jeopardy because of delay. Thus,
it is quite likely that taxpayers
the defense of action against the- in different parts of the country
assessment.
Thus, the taxpayers will be afforded different treatthat
Conservative investors
result of these
had
payers
in
a
or
jeopardized
by
delay,
he may
make the assessment,
The 64 District Directors may
differ as to'ttte reasons which led
assess-
ments.
,
assessment
ap-
ments
•*
Street,
members
During
nal
-
North
Fourth
proximately 2,500 jeopardy
•
Company,
320
Mr. 1 Patton "before
Relations-Public Relations
Industrial
rejoined
Scherck, Rich¬
BY CARLISLE BARGERON
by
Group
all the companies to keep
facts before our employees
part of
Charles W. Hahn
ST. LOUIS, Mo,
has
peace, and a favorable, depend¬
able, climate for business growth.
that could stop
would be our own lethargy. In
the months ahead I expect to see
a steadily mounting effort on the
the
if
Chas. Hahn With
PROM WASHINGTON
has
Copies of the Prospectus may be
;
such
other
dealers
as
may
obtained from the undersigned and from
lawfully offer these securities in this state.
Myron A. Lomasney & Co.
39
vO f
>
■'
J
i t. v
v
i >
'»
Broadway, New York 6, N. Y.
BOwling Green 9-8120
•I
f
v.4
ft
'
tration
The American Depositary
College, Associate, G. H. W ittman Inc.
here is the
relatively simple access to foreign securities
meeting of the com¬
directors —- and often
quite costly, because of gov¬
ernment taxes, perhaps equal
to six months' dividends.
lar to
ADR
American stock certificate. In tracing the
an
p
mechanism of the
The
i
noticed
Certificates" and "American Shares," and answers such puzzling ques¬
as
as
Oil
stock
the
boom
.
Irving Trust Co.
Petroleum
Controls
distributor.
petroleum
Ampol Exploration
'
.
„•
v
Oil
lands
_y'7
'
w
.
„.i,
„
:
Ecuador
in
-
Morgan Guaranty Trust Co.
-Morgan Guaranty Trust Co. *
>
m
Morgan Guaranty Trust Co^
Electrical Industries
Associated
voting rights, foreign taxes, and rights. An extensive table
><•
»
.
Oilfields
Anglo-Ecuadorian
that
of
Irving Trust Co.
(in
Australia
Anglo American Corp.-———
Holding
company
—
South African and
Rhodesian gold, diamond, copper, other mines
late twenties,
the
in
*
"
•
_
•
_
Western
in
exploration
Australian
foreign procedures more
closely to our own first was
Depositary bank, points up the similarities of ADR's "American Share
^
Bankers Trust Co.
association with Caltex)
,
the
procedures, Dr. Marcus lists several advantages including the
possibilities for arbitrage. He explains tber functions performed by the
tions
Ampol Exploration
*
for assimilating
need
Chemical & Morgan Guaranty
_
electrical equipment mfr.
West German
American Israel Paper "B"
Israeli paper and paper products mfr.
Ampol
provided by American Depositary Receipts affording protection simi¬
synthetic textile manufacturer
Dutch
Allgemeine Elektricitaets
Gesellschaft (AEG)
pany
By Edward Marcus, Associate Professor of Economics, Brooklyn
Kunstzijde Unie) — Chase Manhattan Bank
(Algemene
AKU
the
at
Bank Issuing ADR
Its Business
approval
tomary to wait for
Nature of
Foreign Company and
process
quite lengthy—often sev¬
eral months, since it is cus¬
Receipt for Foreign Equities
Described
transfer
and
is
period spread to foreign se¬
British electrical engineering company
lists over 125 shares and their Depositaries.
;
curities. In 1927, in an effort Associated Television "A'7-:.-———Morgan Guaranty Trust Co. 7
Provides television programs for commercial
•
;
to
meet
this
problem,' the
British broadcasts
The boom in common stocks Canadian issue that is the ex¬
Guaranty Trust (now Mor¬ August Thyssen-Huette A.G.—.—— Chemical Bank N. Y. Trust Co,
over the past decade has been
ception; most non-American
West German, iron and steel producer
•<
*
•
gan
Guaranty Trust) origi¬
Chemical Bank N. Y. Trust Co.
educating the American pub¬ securities are on a quite dif¬ nated the American Deposi¬ Badische Anilin-& Soda Fabrik_
West German chemical manufacturer -/-% •*
V
--7
lic to a more sophisticated ferent level, and the unwary
Schroder Trust
.7.. 7
tary Receipt. The boom in the Bancroft Mines
investor may well be in for
Northern Rhodesia copper mine. Associated
level, finan*
with Anglo-American
foreign field during the past
;
r
Y
an
unpleasant surprise if he ten
cially com¬
Chemical Bank N. Y. Trust Co.
years revived interest ih Bayerische Vereinsbank
overlooks the "fine print."
West German commercial bank in Bavaria
'
" '
' *. " ^ •
parable
to
it, and now the Chemical Beecham Group
Chemical & Morgan Guaranty
the more
Fortunately, for many of Bank New York Trust, Irving
British proprietary drug and cosmetics mfr.
v;
■
; :
; 7
the
experienced
foreign stocks the in¬ Trusty Chase Manhattan are --.Birmingham Sound Reproducers.—-.Morgan Guaranty Trust Co.
British manufacturer of phonographs
77'.-'777vestor .has available a form
European.
also active, as well as several
Blyvooruitzicht Gold Mining.———Irving Tr. & Morgan Guaranty
investor. In¬
known as the American De¬
South
African gold
and uranium mine
Y7y7..
other banks in a less impor¬
Boots Pure Drug
—-Irving Trust Co.
creasingly,
positary Receipt (ADR), tant way. /
..
British
pharmaceutical and chemical mfr.
Y
_^77/
which reduces the differences
especial ly
Borax (Holdings)
Morgan Guaranty Trust Co.
.
,
.
_
■
-.,
,
.
■*
^
—
,
-
.
,
,
„
—
■
v
_——
'
,
v
,
—
__
within
the
between
the
domestic
Over 125 ADR's
and
J
■7.
7. British holding
company—mines in Europe,
United States, South America
-
past year or
other shares.
two,
foreign stocks
as
Amer ican
and
even
However, not all
are so covered,
of the more
some
At
well
present
securities
ADR's.
are
over
covered
125
v7
•
'
""
,
and
.;
^'
:
•
v
'
products
manufacturer
throughout British Commonwealth & U. S.
-
by
Y y',
..
•••
77 r.
...
.Morgan Guaranty Trust Co.
Bowater Paper
7 Paper
".
paper
...
■
.
Morgan Guaranty & Irving Tr.
identified British Aluminium
stock prices
British aluminum company
'
V
.7 7'; y, :
popular ones could be the at the end of this paper. In
British-American. Tobacco....
Morgan Guaranty Trust Co.
soared to
new
peaks, there source of costly misunder¬
British tobacco products manufacturer
1955, a reverse move started:
have been nibbles at foreign
British Motors
Irving Trust Co.
standings.
;
foreign bearer receipts were
British
motor
vehicle
manufacturer—
securities. Buyers who were
"7"
'
issued
abroad on American
"Morris," "Austin" 7.y ■ 7
7V; y:
:
y
7-77
Origin of ADR
once
vague about the merits
British Oxygen
—Morgan Guaranty Trust Co.
thus. altering our 7
The ADR, as it is popularly equities,
British Commonwealth producer of oxygen
of General Motors or Stand¬
Y:" 7
!
and other industrial gases
■'' •'A
'v7.y-7,.;
registration preference to the
basic
ard of New Jersey are now called, arose out of the
British Petroleum
Morgan Guaranty Trust Co.
foreign anonymous certificate.
in
stock
owner¬
heard comparing Pirelli's pos¬ difference
British oil producer and distributor
YY\ \
->
The mechanism of the ADR British South Africa
—:
Irving Trust Co.
sible gain from the European ship registration ■, that is the
Owns mineral and surface rights in Africa
'.'.7,
7 y7v77
of
Common Market with the fa¬ characteristic
foreign procedure can be best: ex¬ Burma Mines
Morgan Guaranty Trust Co.
50% control of Burma Corp.; a non-ferrous
:
In
vorable impact of the recent shares.
many
European plained by first tracing^ a
7/ mining* and processing company in Burma
7 - y
British election on English countries the popular form is hypothetical purchase. John Burmah Oil
——Morgan Guaranty & Irving Tr.
"bearer''—the owner; is not Smith in New York City de¬ 7
^Through subsidiaries owns oil properties in
v- ;y',Y"7'"'""'V 7''-7;« ; ' 7'
steel stocks.
;
India, Pakistan, and Burma
•<>'■ 777
:y' v'7cides to buy British Equities.
Most
are
un¬ registered on anyone's books.
Americans
Canadian Pacific Railway
y.
'
7 77'
He telephones his broker in
aware .that
there are differ¬ This,
incidentally,
could
4% preference non-cum._,
Irving Trust Co77:'77":^%7y
Canadian' railway;
this city, who then transmits 7"50%
ownership
of 7 :
" ''
f' 71
never be true of a New York
ences in the mechanism cov¬
Prof. Edward Marcus
They
are
,
.
,
——
-
'
•
•,
...
.
.-
-
,
....
•
-
v
.
:
■
*•
■
i
the -order to London. After
sale of Stock Exchange listed stock,
such securities. Since Cana¬ where the requirement is for execution, notice is given to
dian stocks tend to be traded a certificate registered in the deposit .the shares with the
London office (or correpondon the same
exchanges or in name of the holder. All Amer¬
ering the purchase
the
ties,
Over-the-Counter
same
Market
it
reason
stocks
as
ican
stock certificates
is
only
other
that
are
to
be
foreign ferred.
Alternatively,
regarded registration is
similarly. Actually, it is the
as
in Great
in
are
equi¬ this form. But abroad,
natural to more anonymous form is
the American
the
ent
office)
bank
Investments,
•mines
Cie.
of the New York
The
New
York
if
so
name
(or street
desired).
Britain, the regis¬
-
7
on
bank
in South
"
7
&
P.
assets
of
.7'*'
,.-Y ;
manufacturer
and
bank
smelters
in
in-non-ferrous
England,
metals
British
For financial institutions
textiles
•
.
■
of
chemicals
-V7'-/'
gold
mine
Decca
"
.
diamond
Records
uand
SECURITIES
navigational
mine
,
-
*
British
r
bank
—
British iron
and
W-st German
steel
Dresdner Bank
_Y
West German
&
no. Inc.
British
- ances
—
Elliott
FOREIGN SECURITIES SPECIALISTS
Fa ire y
20
BROAD STREET
TELEPHONE HANOVER 2-0050
•
NEW YORK 5, N.
producer
1
Y.
household
manufacturer
west
German
Fiat.
....
7
Morgan Guaranty
Morgan Guaranty Trust Co.
electrical
goods-—radio3,
Morgan Guaranty Trust Co.
appliTV
■
.
"
Y
•
Morgan Guaranty Trust Co.
of
automatic
manufacturer
equip't
&
Morgan
Guaranty
*
Bayer
chemical
Farbwerke Hoechst
West German
&
.
Chemical
aircraft
Fartjenfabriken
TELETYPE NY 1-971
of
-
-
——.^......Chemical
Co.
British
Morgan Guaranty Trust Co.
commercial bank
Automation
British
Y.v
manufacturer
manufacturer
and
Morgan Guaranty Trust Co.
Huettenunion.—Chemical Bank N. Y. Trust Co,
Electric & Musical Industries
,,
^
Chemical Bank N. Y. Trust Co,
,
Duni°P Rubber manufacturer
British rubber
Carl Marks
Y
;
;
*
—
steel
Dortmund-IIoerder
.
—
>
__
.■
;
■
-
.
■...
Ltd._^
distiller
Y
.Chemical Bank N. Y. Trust Co.
'
7
.1
77
and coal producer
Co.,
v
: •
>
.7
aids
Dorman, Long & Co
PRIMARY TRADING MARKETS
:i.
___Irving Trust Co.
commercial
Yest ®erman
^
•/'
____
German
Distillers
.Y
7
,
'
phonograph records
Deutsche Erdoel
'
':7'7:."
Morgan Guaranty & Irving Tr.
___
manufacturer of
Deutsche Bank
West
•
..
Irving Trust Co.
:
African
British
'"7
gold and uranium mine
(Deferred)
FOREIGN
> *;
;
-'Y.
Mines
African
Y,.South
;
and
7-7"
:
De Beers Consolidated Mines
•
'
.
,
Irving Trust Co.
African
Daggafontein
South
•
."•7777,
—Morgan Guaranty Trust Co.
Mines
South
,
.
-7 Y
•
manufacturer
synthetic
,
Malay
Courtaulds
■
.
.Irving Trust Co.
Australia,
peninsula
Crown
y
,
Irving Trust Co.
interests
Consolidated Tin Smelters
'.
Y Y
.
—Chemical Bank N. Y. Trust Co.
commercial
South Africa
Tin
■■'7
merchant
Consolidated Gold Fields of
15
7;':
"
■
Irving Trust Co.
thread
Worldwide
7" V
'
the
Commerzbank
•
/'
•7
'
7''77
Morgan Guaranty Trust Co.
Coats
German
:
'• :
.^
Suez
the
-
•
Irving Trust Co.
gold
African
.,
Financiere
British
name,
page
,
products manufacturer
mainly
Holding company
for
former Suez Canal Co.
;
J.
Normally, the
Continued
7- *■,
* - r;
;
}■ 77Morgan Guaranty Trust Co. 7;
*
^__
tobacco
Central Mining & Investment—
then issues the ADR in John
where Smith's
more common,
British
handling the company's
ADR's.
pre¬
Consolidated Mining & Smelting
.
Carreras "B"
or
-
__
manufacturer
*
...—
Chemical Bank N. Y. Trust Co.
Y
Chemical
1
&
•
Morgan
chemical manufacturer
Italian
manufacturer- of -transport .equlpment-r-"Piat" auto
Schroder Trust Co.
Guaranty
Number 5956
191
Volume
.
.
The Commercial and Financial
Chronicle
.
(2375)
•
15
/
Foreign Company and Nature of
Its Business
Bank
Issuing ADR
4*4% pref.) Morgan Guaranty
Motor (ordinary and
uritis" auto manufacturer
Free State Geduld Mines
ri
01 t,I
African goid mine
Free
States Saaiplaas
Fnrd
Two
The American Depositary
Trust Co.
that
questions
puzzle
the
American
treatment
may
the"
is
of
voting rights
_
Morgan Guaranty & Chemical
and foreign taxes. Although
Morgan Guaranty Trust Co.
rarely exercised, the Deposi¬
k0Lui Alllean gold mine
Continued from page 14
registration law, the Ameri- tary will vote the underlying
Furness, Withy —
Morgan Guaranty Trust Co.
*
number of shares
wormwice shipping ^company
■
,
f represented can in most cases cannot ex- shares in conformity with the
faumont-British Pictures "A
Irving Trust Co.
by the ADR is the same as the ercise his
ADR
holder's
instructions.
right to subscribe
Ordinary
-Irving Trust Co.
tfmisn taeater chain
original purchase, though oc- to additional shares. Instead, Usually the Depositary will
-Chemical Bank N. Y. Trust Co.
^lonally, there may be one the Depositary sells the right request instructions, and only
West German
ADR for several
foreign abroad and gives him the pro if the ADR owner indicates a
r.eneral Electric Co.—Morgan Guaranty Trust Co.
sharpc
nuslv electrical equipment
manufacturer
'
"
-Shares nt several ADR's for rata distribution. His alterna- preference will the Deposi¬
of cwmvnl atyd>„
General Mining & Finance——Irving Trust Co.
one
foreign share. The Lon¬ tive is to turn in his ADR, tary instruct the foreign cor¬
auuth African, mining finance company
don custodian for the New
Oeneral Tin Investments._______
Chase Manhattan Bank
r
As for foreign
arrange to have the original respondent.
Holding
company of certain. British and
/York bank has the actual shares delivered to him taxes, these are governed by
Far Eastern tin companies, some' of which
■
\
" '
•', /•
were formerly part of
the Bolivian Patino
4
shares, either in bearer or abroad, and then exercise the the tax conventions; usually
enterprise;
t'•
/ a,
^registered form, depending on right to subscribe in the for- the American ADR owner can
Gestetner "A" and OrdinaryMorgan Guaranty Trust Co.
Receipt for Foreign Equities
.
.
_
.
.
,,
.
r—
jl_
j-
x.-i.
•
tt-
,,
.
,
,
.
Glaxo
■ »
•,,.v
Stores "A"
Hadfields
•'
the
V
-
r
•
'
.
,
' :
-
"*
:
^
in
holding
company. for
,
f
•
scribed
<
Chemical Bank N. Y. Trust Co.
German
West
:
'
iron,
the
f
Industries:?—
British -chemical -producer
Vv;
Morgan Guaranty Trust Co.
;• V
.•
,>#•
.
•*'
'V
■
,
:
reader
will
note
that
exchange—of -shares for
ADR
the
paragraph.
Advantages/of ADR's
warrants
it,
an
.
The advantages of the ADR
.
>r
.
equipment
electrical
-Mexican
•
Jaguar Car "A"
.
investments
R. Karstadt
KLM
-
-
-•
-
.
•"
gold &
.
.
_
••British
Lobitos
and
—
and
re-
4
-
,
'■ •
*.
steel
transportation
&
Morgan Guaranty
producer
Morgan Guaranty Trust Co.
.—
:
V.;4
•..:,i''
communications
1-<t"hplier
South
African
:
gold
producer
and
-
'*
holding
*
4
'
•' 'l. -{..
Northern Rhodesian
oil
producer
r
1
•
-
►...
.* ..'
.
...
,v.
Investments
in
Pirelli Societa
mine
copper
South-
per
rubber
->•'
'»
V
r-J
./
>
; 4
African
gold
products
and
*
*
...
-V
*- "
.
manufacturer •
;
s
_i_l_L__Morgan Guaranty Trust Co.
manufacturer
electronics
mines
■
Azioni_«:__w^__—Chemical Bank N. Y. Trust Co.
rlessey Company
.
.
Copper_2d;_4__ Irving Trust Co.1
•
British
' •"»
'
.
Orange Free State InvestmentIrving Trust Co.m
■*
"
.Morgan Guaranty Trust Co.
Balian chemical end
Italian
"
;*
-
Montecatini
Nchanga Consolidated
of
essary
components
nec¬
shares abroad. The
saw
advertised
an
>
..
,
m
mine <
fio'ili iAfrIran holding- company—gold
Kdchhold Chemicals
British chemical
Rnemische
-
mines
If
terest.
j
«
Stahlwerke
dividend
a
■>
--—
&
,
.
'
.
steel
"i
Elecktrizitaetswerk
Rhodesian
°ding
Public
Chemical Bank N. Y. Trust Co.
'
M
\ 4.
Utility
,
Anglo-American
company^-mainly Rhodesian
i:___ Schroder Trust Co.
copper
,1 "'WC'
Khodesian Broken Ilill......
Northern Rhodesia
lead, zfne,
:'v'.v':,•
'■'/
..
*
.*
....Irving Trust Co.
United
is
an
ADR
in
the
abroad, the
the
is
sum
The
For
holder
that
the
if
he
stock
ADR
investor
would have to do for
himself.
purchased the foreign
itself.
The
annual
r
•
.
.
t
on
request,
example, at the office of
on
page
Brokers, Dealers and Financial Institutions
foreign securities
Wertheim & Co.
Members New York Stock
Continued
..
Exchange
de¬
Broadway
New York
.»
5, N. Y.
Deposi¬
Teletype
Telephone
-----
r*cc
n-f
NY 1-483
REctor
on
WOUld
COUrse,
1-484
2-2300
be
1-485
on page
16
in
certificate.
Since/for¬
arbitrarily establish
take
tion
care
of
of
the
ADR's.
its
a
Dealers and Financial Institutions
FOREIGN
delay
registra¬
Thus,
as
compared with the dividend
SECURITIES
payable abroad, there could
be'two
slight — delays, the
For Banks,
Brokers and Dealers
—
transmission of the funds and
the time from transfer to new
Foreign Securities
Bought
Sold
,
registration of the ADR.
Quoted
-
-
A
complication is intro¬
foreign company
issues rights to purchase ad¬
<
duced if the
Alfred LVanden Broeck & Go.
~
==
New York Stock
Exchange '
65
LIBERTY
4
'
American Stock Exchange
STREET,
Tel.: BE 3-8880
,
,
•
NEW
YORK
Teletype NY
Private IFire System to
BEAR/STEARNS & CO.
Members New York Stock
ditional shares. Since the SEC
MAIN
MEMBERS
Canada
6
1-4-686
requires that any new issue
for which value is given be
registered
-
under
the
Securities Act, and since
1933
few
companies wish to
proceed with the complicated
foreign
.
OFFICE
Exchange
European Representative:
One Wall Street, New York 5
Leo Korndorffer
Telephone: DIgby 4-8500
Haringvlietstraat 10,
.
re¬
port of the foreign company
Continued
120
the
performs
Depositary
other functions for the
un¬
is
the
ADR holder receives.;
States.
eign dividends are usually
payable, immediately, there;
being no need for time be¬
tween transfer and registra¬
tion as in this country, the
American
Depositary
must
to
and e'admiiini
;
as
a manner similar to the loss of a domestic
stock
,
of :
ADR,
'
Trust Co.;.processed
Rheiniseh-Westfaelisches
West German
-
____Chemical Bank N. Y. Trust Co.
iron
company-
reverse
amount
for
propriate checks LOSS OI an.
„
-v -•*
■'■•
manufacturer
yV- German holding
net
will be furnished
tary, who will then send the
____^_Morgan Guaranty Trust Co. \
___;
has been withheld
selling
clared, the custodian abroad
will collect the amount, and;
after; receiving < these funds,
transmits them to the
^
-
.
Morgan Guaranty Trust Co.
"
>v.M : V \ , C:
■%!!!? AfJicJ?g^^L-.Chemieal Bank N. Y.
^n<? ^ines
---i------Irving Trust Co.
p,
1118,
or
notice
The ADR avoids these
the
be. The Depositary,
possible—buying abroad
pleasant aspects. The Deposi¬
tary keeps the watchful eye
out, and thus can notify him;
of any action affecting his in¬
.
Gold Mining
uranium
1116
may
and
of a dividend or other right.
Obviously, if he lost the cou-,
pon or the share certificate;
he would have no protection.
company in So. African minerals
and
case
also
"otgietersrust Platinums _—_x____—Chemical Bank N. Y. Trust Co. American stockholder the
apinvestment
South African gold
uses
Tor him to watch the
for
aircraft industries
President Brand
if he
'v
Middle Witwatersrand (Western Area) Irving Trust Co.
company
'•:j
'
—Chemical
and
bearer
bonds. It would then be
he
Irving Trust Co.
___—
coal
m
certificate with coupons at¬
in the coun¬
try of domicile of his equity,
turning in his coupon when
'
•Mr
■
4 ',.
Investments, mainly in tin industry
Instead, he would get
our
credit
financial papers
,,i,
Morgan Guaranty Trust Co.
steel
••/>. "•
'
< - >•
—Morgan Guaranty Trust Co.
holding company for.-Jron and
Peru
-
First National City Bank
.<•..<
in
;
►.
of
record,
tached, similar to
?
s
•' \
'•
*
producer
Preference
&
registration
any
;
.
a
Marconi International Marine..
.
-
.
Chase Manhattan Bank
London Tin Corp.__—
,
"
First National City Bank
___—4
Oilfields
British
1
course.
,
iron
producing properties
finery in England
West German.
1
..
fabricator
Steel
Mannesmann
::
,
airline
Cil
:
4
—Chemical Bank N. Y. Trust Co.
coal
steel
:;r
-
;__
La Consolidada Ord.
Mexican
•
chain
Kloeckner-Werke
Lancashire
"
,
•
.
department store
international
German
V:
'
•
other
(Royal Dutch Airline)w_—
West
r
-
Invest.wi^__^__ Irving Trust Co.
African
______
German
v'est
South
companies
fining
.
manufacturer
Consol.
in
'
<
___^——Morgan Guaranty Trust Co.4
automobile
British
Johannesburg
manufacturer
.
forms
^American could
buy an ADR
here,- sell the corresponding
up more clearly after shares
abroad, making depurchase. Had the Ameri- livery by turning in the ADR
can
bought a foreign bearer in New York and getting
security, he would not be on delivery of the
underlying
v
-^——Morgan Guaranty Trust Co.
British, tobacco products manufacturer '
«• •/, „ ,*
4*. show
Industria Elec. de Mexico.—;Ji^^4_lt__Chase Manhattan Bank
v:
the
Imperial Tobacco
a
"long form" and itemizes his
deductions;
the
Depositary
generally supplies the neces¬
sary data for completion of
reverse—permits it should be noted, transmits
the only the dividend paid; if tax
or
quotation
._i
:v;*, *
exer¬
,
manner
preceding Prlce ; spread
between the
■-/■*.<< *
»
TJ. S. market and the foreign
Ti
J
in
s+eel, and coal1
Imperial Chemical
rights and
claim
arbitrage- operations.---If
He-
manner
to
arrange
arrange
Possibility of Arbitrage
The
an
this ADR would have
^
steel producer.
-
this
_
-utcn iron and
an
already outstanding ADR in
Hoesch AGi—^-——-—Chemical Bank N. Yi Trust Co. nally
;,7 west German_iron, steely & coai producer
;
^
r
" arisen
Hoogovens en Staalfabneken N.V.____Morgan Guaranty Trust Co."
r
,,
(or
cise them).
••
^uarantyTrust:^^
Iiseder Huette
market
withdraw his
^Smith could have bought
k •'*.?
"•
Ha^h^t
in eign
It should be noted that Mr.
Morgan Guaranty Trust Co.
-
handling
"
l'M'
-4
customary
that center.
Morgan Guaranty Trust Co.
steel producer.. ^ "
British
r.
,
■
,.
Morgan Guaranty Trust Co.,
--
—
..
mail order and retail "chain
>'iLHh
,
-Morgan Guaranty Trust Co.
proprietary drug..manufacturer
British
.
' \
Laboratories m____ —c.„
Great Universal
Ordinary
,
•
.
,
manufacturer of office equipment
British
v
.
Amsterdam-Zuid
-Teletype: NY 1-633
Cable Address: "BEARBAND", N.
Y.
Tel.: 793345
Telex: 11309
16
16
Continued from page
The American Depositary
IS
.
The
_
Continued from page 15
Rhokana
On
the
other
hand,
alDepositary; though there are other types
otherwise
the
shareholder of foreign shares in the New
would have to write for it to York market, many are no
the foreign company. In addi- different in
practice from the
tion, it keeps abreast of any ADR described is this article,
new
factors
ADR
as
that
affect
stockholder,
a
the
although
their
Roan8 AnteloDeineS
can
affected.
"American Shares"
Ob viously,
Certificates"
Share
are
French
gold,
a
new
occur—
only
West
SEC
requirements
automobile
British sewing
Sma
and truck
steel
and
British steel
Tate
&
identical
,
The Depositary, as already
indicated,
acts
as
the trans-
fer agent on the ADR. A sep-
shares, he does have the
same
.
with
,
rd to cash diyi.
&
.
registrar is necessary dends, sale and purchase. His
only for ADR's listed on the main concern should be that
New York Stock Exchange, he knows the type of share
course,
Wall Street
Trust Co.
household
hinted at,
consumer
Not
British
."r.-
for
and
its
business,
New tution which has issued the
York market trades both the
ADR
of
ADR's. along with the banking insti-
the
many
nature
In
majority
the
the
overwhelming the bulk of the trading in forof cases, however, eign securities, via ADR's, is
this would be
a
preference for done in the Over-the-counter
the ADR, if available.
gold and other
Market
available.
needs
If
«r
gold and
Gold
telling the
quoted.
are
are some rare
African
gold
uranium
&
Morgan Guaranty
in
our
H
,
*
gold
British
a
a mer|can
J Ordinary.
Wal1
mainly
Over-the-counter.
»D.f.rr.d.
'
*
in
- -
•
.
tNew Y°rk stock Fjcchange
Trading
of
Mr.
Community,
and
Mrs.
at the
Donald I.
Rogers in Douglaston, L. I. (Mr.
Rogers is the "Tribune's" Business
—Marine Midland Trust Co
companies,
Street
home
■
Helicopters
oil
E« S
buffet Supper, attended by 5U
writers and other members of the
Ordinary and 6% pref.—Morgan Guaranty Trust Co
for
was
C. Norman Stabler wdb
h0"o^d. on TuesdaZ'
mining
variety store chain
carrier
resignation
n
Tribune,'
Trust——.Irving Trust Co
African
okPCl
X otoGL
0„ the occasion of his
(
Woolworth
,
.
,
OLdUIt/I
gold and uranium mine
South
traded
Over-the-Counter Market.
"
Morgan Guaranty Trust Co.
companies
and Financial Editor.)
h
;
J
zzz
.
Joining the "Tribune" in
••
Mr. Stabler had served
financial
•
1925,
the paper's
department as reporter, editor and columnist. His
new
association will be formally1
news
your
Diversified Income
missing. Prices will be gladly
serve your
ALLENTOWN, Pa.
—«-
a„
EDWIN L. BECK
Care of Chronicle, 25 Park Place, New York
7, N. Y.
R
D
CafM
Diversified
is
clients. It pays!
Telephone REctor 2-9570
Stock Exchange and is also
-
•
.
Chronicle bound sets
Be prepared with complete sets to better
,
mine
Guaranty Trust Co.
in
the
at
The stock is listed on the Toronto
West Rand Consolidated Mines...—Chemical Bank N. Y.
Trust Co.
Investment
out
times 1959 earnings of 660 a share.
—...
Investment
but
mixtion
that
gold mine
South African
tor
at approximately $6.00, only 9.1
Irving Trust Co.
Western Stockholders Investment
West Rand
Situation
present time the, shares are selling
minc
and
interGStmg
an
nncwpr
—...Irving Tr. & Morgan Guaranty
Western Holdings
South African
'
uranium mine
Mining
50UAh sAtJlc&? .goWdnan,dJ
South
,
answer mat question,
West Driefontem Gold Mming_._„Chemical
Worldwide
interested—do not delay. Write
years you are
1
State Gold
—
south African
.
the investor who is willing to take
a calculated risk. Is this the right
time to buy? Only the future can
roiling stock
Mining
OPPORTUNITY...
you
IS
•
manufacturer—
equipment
-
andmust still be classed as a speculative situation. But I believe it
——Morgan Guaranty Trust Co.
—
heavy
ships,
,
limited time there
^
——Morgan Guaranty Trust Co.
!Last
a
•
-
considered by any means as a blue
chip. It is a relatively new cornpany which is just finding its feet,
*
,
;;
•
•; ——Morgan Guaranty Trust Co.
Companies.—
Ltd.
Welkom
*
YOUR
accounts-
;Cd.;:-V^^lcal
,
—.
-
^
.Chemical Bank N. Y. Trust
Virginia Orange Free
Air
For
;
•..
"
,
British
appropriate American Deposi-
original stock, tary Receipt covering the
Hence, the prospective buyer shares of the respective cornshould specify which he de- panies. It should be noted that
sires.
-
-
Morgan Guaranty & Irving Tr.
—
Unilevor
trading company in molasses
United Steel
accompanying tabur
we show name of the
at this foreign corporation as well as
foreign the
covered by
are
Indeed,
all
'
,
.
British Commonwealth iron & steel producer
already lation
is necessary
juncture.
stocks
caution,
basis.
By
employing this
device, the company will avoid
paying income.tax for some years
t° come, although it may well
make provision in its operating
--.line-
1
fSSuv°eno^T^r«rMtumaU pr°"uc<'rUnited Molasses
aircraft,
A word of
rJUrlaws which permit depreciation to be charged on a straight-
,v
v
Corporation
Vickers
jn the
North
mining companies
must be in the that he is ordering.
area.
i960, but thereafter the company
^an
;
Union Miniere du Haut-Katanga— Belgian American Bk & Tr. Co.
,
arate
and, of
in
This loss carry-forexpire halfway through
earlier years.
; r
•
.
investment in south African
ease
;
Morgan Guaranty Trust Co.
; ;
^
Irving Trust Co.
.
.
;
ward will
fabricator
general dis- wlth the protection he has m
and south America
foreign shares an American stock certificate.
""I""
covered by ADR's would While
he is somewhat reand
distributor
of
require
a
more
detailed stricted in the exercise of
goods and foods,
Unilever N.V.
registration.
■
*
rights to purchase additional
Union
'
—Morgan Guaranty Trust Co.
of
comment. Hitherto,
some
serves
the company has. not-paid any'be**Morgan Guaranty Trust Co. cause of losses incurred in the
v
properties
v
"V
^
Development
company—oil
Dutch member of
u';■■:%■■■>;
.—Irving Trust Co.
—___—
British steel
com-
The question of income tax de-
•"
Petroleum
the
that
chance
even
net profit before tax.
*
ln CentraI African
Securities Trust—
Holding
,
operating profit and a doubling in
v
Irving Trust Co.
Ultramar Company
a
f
be. to produce a 50% increase in
Morgan Guaranty Trust Co. >
refiner
°J.
ProsP^us. This unsosimplicity
is
limited
to
..
Irving Trust Co.
Lyle^„>—
Ltd.
.
pany's sales will increase by close
to 25%. The effect of this, would
>■• investment in tobacco securities
Co.
.
than
manufacturer
British sugar
last
cnarges last
ine eiieci 01 tne ioregpmg can
be summarized as follows: within
the next two years there is a better
..
Sons
c°inpany
Tobacco
charges
Morgan Guaranty & Chemical
Concessions
:
of
million.
Morgan Guaranty Trust Co.
Sub Nigel
Tanganyika
comprised
..
tinpiate producer
S&
is
year amounted to $o.4 million out
of a total operating profit of $8.6
real estate
Lloyds
John Summers
•
•
iotai iixea
year,
a
„
British steel producer
„
„
and
doUar
,
debt, the interest on which
Irving Trust Co.
Australian
in
,
amounts to little over $2 million
Co
gas,
of Wales
Company
British
Trust
••
.
over
Chemical Bank N. Y. Trust Go.
of
distributor
and
company
Stewarts
.
Chemical Bank N. Y. Trust Co.
producer
.
funded
v.--.
—
Steel
-
textile manufacturer
electricity, and chemicals
Stanhill Holdings
..
(4) Leverage arising from fixed
charges. Of the company's total
capitalization Of $76 million, a
,,
Tube Investments
tribution
National City Bank
g
with thg y
tQ
..
Morgan Guaranty Trust Go.
..
ViMosa^Mieta NaziomUe
Invest'fc
to bring the Canadian dollar back
manufacturer
Societa Edison
that the will
probated, not
virtually
com-
it went far enough
example,
for
Guaranty
*
machine manufacturer
Italian synthetic
Italian
.
.
.
Industria Applicazioni Viscosa
,
the United States, but
basis
approx-
the
of
tent tills year, Will Dong aoout a
substantial improvement in the
company's operating position if,
Dutch
equipment mfr
electrical
German
French
are
a
Co.
.
_
^
L
Mnriran
certificate; thus delivery positary Receipt gives him acof the certificate is delivery Cess to
foreign securities on
orders;
two-thirds,
pany's chemical output is exported, operating revenues have been
^adversely affected by the high
Halskeu-—-—-------Chemical & Morgan Guaranty
&
Trinidad
licited
iarge proportion,
a
imately
*Chase Manhattan BanR
flrving Trust Co.
& Trading
Singer Manufacturing
ADR
■
gince
-
*
„
canique et Carrosserie Automobile-First
also abroad,
quite simple. Form .S-12 is
Ip summary, it can be said
used; and the required pro- that for the average American
spectus is represented by the investor, the American Dethe
;
metals, diamonds,
SIMCA—Society Industrielle de Me-
necessity of having the
m
. ,
Morgan Guaranty Trust Co.
S'emens
the
issue does not
Leverage arising from the
(3)
premium on the Canadian dollar.
n
British member associated with Royal
creased holder of ADR's there
by the deposit of al- the possibility
ready existing stock—that is, may have to be
to
access
°* America.
Co
,
Morgan Guaranty Trust
oil
Shell Transport
calculating the net
Finally, it should be noted
amount due per share.
that in the case of the de¬
created
Triret
.
producer of glass
Shell Transport & Trading
fore
procedures for
probated in a foreign
American securities, the role country. On the other hand,
of
the
SEC
is
relatively where an estate includes origminor.
Since
the
ADR
is inal foreign securities there is
manufacturer
Shares'L----i---i.Chase Manhattan Bank
—tChase Manhatt n B
Investm't company—base
procedure must Africa. Exchange complicarecompensed, and the tions have postponed efforts
fee is therefore deducted be- to add Japanese stocks,
Unlike
,
Morgan Guaranty Trust Go.
Selection
also be
no
,
has
those of its U. S. parent, Celanese
<
•
research facili-
own
company
,
The dividend
is
the
St. John D'el Rey Mining
Morgan Guaranty Trust Go.
premium prevailing oil the CanaBraziiian gold mine
\ t,v dian dollar in the past year or so.
Santos Ltd
Irving Trust Co. .
,
A decline in the premium, which
tralia, and the Union of South
Minor SEC Role
producer
(Compagnie de)
Saint-Gobain
some-
cancellation,
final
and
dmon to its
^
—Irving Trust Co.
& aircraft
"NY
nities to up-grade products. In ad-
rn
?oUrtCfoinUvldwith sheiiT?Sortd distn ""
times synonymous with the
"American . Depositary Receipt." So far, under these
various
names,
procedures
have been established for
trading in the leading stocks
of the United Kingdom, Germany, France, the Netherlands, Italy, Belgium, Aus-
tion
automobile
Royal Dutch Fl. 20
and
for all these
services the Depositary gets
a fee.
Generally, this is collected from the ADR buyer
or
seller, since the foreign
issuer
rarely
absorbs
the
charges. Each transfer of an
ADR gives rise to a charge,
as well as the
original crea-
Continued from page 2
.
.—
^
J Like B6St
-—Morgan Guaranty Trust Co.
—
....
Dutch
Royal
and differ. In particular, "Ameri-
notifies him if his interest is
-
SeCUrity
v
_
Northern Rhode-
Northern Rhodesian copper
Rolls Royce
may
names
mines
—
....
Holding company—mainly
British
«
Irving Trust Co.
Corp
Northern Rhodesian copper
RiO Tinto
n
A
Guaranty Trust Co.
Rhodesian SMw Trust---—
Morgan
Holding company — Northern Rhodesian
appropriate
Thursday, June 2, 1960
,, .
.
Foreign Company and Nature of
Receipt for Foreign Equities
the
Chronicle
Commercial and Financial
The
(2376)
?ngagi"S
I
NivS
Gra^m?^esMe™
y'
Win* IMllliCir Co« OpCHS
WASHINGTON TOWNSHIP,
N. J.
ofmes at ,50 Broad St., New York —William P. Miller is engaging in
Clty' °fflcers are J- Irving Weiss, a securities business from offices
Resident; Abraham B. Weiss,'Vice % 109 Honeysuckle Drive under
Thorns J. He,lop, Vice President; President;
•
'
Capital Counsellors, Inc. is engaging in a securities business from
Blair-Smith. Sec- tary-Treasurer.
was
Eve Weiss, SecreJ.
Irving
formerly, with Shields
Weiss
& Co.
J^2SaSBJIrtZX
meSr^th
Fenner &
Mwr'iU
Smith
Lynch, Pierce,
Incorporated.
Number 5956
191
Volume
.
.
The Commercial
.
and Financial Chronicle
THE- MARKET;..... AND YOU
cent
(2377)
markets,
despite
currently but do
man-
the
pave
17
<
PrTltFprirtari kr
agement predictions that it way for future growth.
BY WALLACE STREETS
will
reach
the
billion
sales
Wheeler Forming
level for the first time in its
history this
year.
tion
It is selling has
not
p^tidpated hrthe^e- NeW Coast "Firm
showed. Industry sources
continued to
as well as outside
spectators Si a? aei°7% Sountfrom <=ent popularity is Raytheon Walter w. Cruttendell) Jr. wiu
ind opposition in the 625-30
last 'vear'v nt>nk
,..j
ff
which at the low this year become associate^ with the newly
were
still
predicting unit
area
for their average this
Kr', tf
was
approximately half of formed investment firm of
sales at the
second-highest
week. High hopes that a cut
level in
Angeles, on
history. On the other dividend covered °two and a ^st year's peak The company
& Cruttend™^ Los
in the margin requirement,
July 1.
His
conservacurrently, 90 %, would come hand, mitigating this seem¬
resignation as
ingly good news is the fact,
partner of
over the long holiday week¬
forthfZr
earmngS a"d had to cut back to size
that the low-profit
y
Cruttenden,
compacts,
later so
end to give the list at least a
that .despite a fat
Podesta & Co.
are
taking over a large share
\]r *
temporary boost, proved pre¬
jump in sales, earnings were
becomes ef¬
Industrial stocks
a
*
!
•
mature.
In its
of
-
the
swing
recovery
the
v
.
little
market
demand
and
for
there
the
is
Like
high-
enterprises
with the auto
•
1 inked static
and
the
industry, U. S.;growth * nature
in he rent
of
the
fective
industrial average closed only profit frills to be installed on Rubber has not been obvious- pany Was obscured. With the
them. The pinch,
consequent¬ ly in favor;. Yet only about a straightening out- of its inonce
before' above 625 and
fifth of its sales come from ternal
this week worked ahead to ly, is a double one.
situation, the company
selling moved
back to the lower
of the resistance area.
628 before new
limit
Rails Still Drab
Motors
tenden's
ciate
It
leaves
in the rails was
a drab one. Mild selling kept
them depressed even when
there was selective demand
elsewhere. For several weeks
colossus
a
Motors, with
makers where the ups
car
could
be
is
now could: be at; the- turning
production point where .expanding earnfactor. Its more imporings can be realized. If so, it
like
a
tant work is in industrial rub-
long- ber
goods, rubber chemicals
term record of
profit-making and plastic
products, even
ability, selling at little better
participates in the running of
than
12-times earnings and
a nuclear reactor for research
yielding 4M>% on a dividend work. Its latest announced
that
new
a
larded with
would
asso¬
the
in
firm
John
E.
Wheeler,
and downs of auto
"Growth"
vs.
are
General
The story
the
High-Yielding
drop it
Crut-
.Mr,
§
,
in to
May
31.
-corn-
a
former
cagoan
W. W. Cruttenden, Jr.
Chi-
and
to
member of the
other
old Chicago Stock Exchange, more
electronics in investor inter-
ffiSK tS
probably
participate
be
with
able
the
to make up some
est
of the at Hill Richards & Co., Los Anground lost by the stock mar- geles. Wheeler & Cruttenden, Inc.
ketwise.
'
wiH conduct a specialist operation
a
venture is a joint one with
*
*
*
Change
a memhad been that the year-end or other extra. And Borden Co. to build chemical
Rails as a group stir up ber of the Midwest Stock Exch.
this is in odd contrast with
carriers could return to favor
plants to broaden its chemical little enthusiasm but not all
Mr. Cruttenden, 37, is the oldest
and take over market leader¬ the no-yield, 50 or more times business.
the roads,
like the eastern son of the founding partner of
ship. But they showed little earnings items where
ones, are in continuing trou^
°n
Pair of Interesting Laggards
inclination to -do so and, in "growth" is the magic word.
bles. Southern Railroad con_
alfo
the hopes
.
in
months
down
for
row
a
*
.
.
.
as
minus-ground
General Instrument, for in¬
by a slim margin for the
month of May, to make it five
stance, dipped into red ink in
fact, eased into
*
*
Colgate
other
Falmolive
old-time
name
is
an-
in
the
were
as
for the gen¬
the
Memorial
In: the
meantime,
trimmed
labor
its
it has
cialist,
as
on
floor broker and
by ™est stock Exchange since that
force
South which added
100
new
more
area
111 "iUllV1CI bdl y
than
industries to the
Day passed, highs.
Colgate's domestic business Southern serves. Its amply
which is the-traditional.date
has been relatively static, al- covered dividend offers a
Expanding Electronics Items
that marks the
beginning of
though profit margins have yield of about 6%.
To its credit, General In¬
the summer
been improved. Its< key factor
rally. June is one
[The views expressed in this article
of the better months for the strument has been busily ex¬
in its new records is a boost d0 not
necessarily at any time coinmarket
historically when it panding its participation in of nearly two-thirds in for- cide with those of the "Chronicle."
the electronics field via de¬
comes to
winding up with a
eign sales in the last five They are presented as those of the
plus sign. But with the busi¬ velopment and merger; in¬ years, to where last year the ou^or
only.I *
•
•
•' v *
-j
ness
picture scrambled, there cluding a pending acquisition foreign operations produced
g.
C.
Haas &
Co., 65 Broadway,
New York City, members of the
NeW.Yo1? sto.ck
*s cur~
nhLL Vrfthf founding6o£
few
flat
predictions
either way as far as the shortterm movement of the aver¬
of General Transistor. Where¬
half of sales and two-thirds of
Walston Adds
to
the
firm.
^Partners in the firm
are
George
w-Theo~
■*
were
spe-
the floor of the Mid-
40%, lowered its wage ratio time*
significantly and kept profits p p tj
p
Up well. Helping along was VJ. O. IJLclclS 00.
four the move of industry to the FCAfV* A
yield is less than one-half of each year for the last
arguments 1% and the issue is among and anticipates posting anonly muted -somewhat those that keeps posting new other peak this year.
;
over
eral list. And
Infantry service in World War II.
vlrSil Kick feeadethat for rails generally, g. firm,
running more than the
twice
earnings increased progres¬ split last year. Since then the
With the rails in no mood
sively from 21 cents, 93 cents, shares have had a range of
to confirm the recovery in the and
$1.37, so the apparent less than 10 points although
Industrial Average, the de¬
growth outweighs a 15-cent the company has;reported
bate was "hot" over whether dividend
payout on which the record sales and earnings
a
trainee in 1946, following combat-
vestor interest since its stock
1950, 1952 and 1955. But then
their average.
the worst is
tinues to add to its business,
the rate of growth in the last
T^Mead, Jr^all
zellar, Jr., Edgar
general partners, and Isle H. Lev-
inger
and
G.
Hinman
Barrett,
Limited partners.
Staff
radio and TV the company's income. The
(Special to The Financial Chronicle) r.
p
■
n_l
1
*7
1'
components was promise in the future is its ac- DENVER, Colo.—Robert F. Clayrorms Roebuck runds
its major business a few years
ages was concerned....
quisition of an ethical- drug ton has been added to the staff of Melvin L. Roebuck is engaging in
ago, this activity is now down firm early this year as well Walston & Co., Inc. Denver, U. S„
at
Selective Demand
™Ze,°N™
to only half of total sales and as
a
hospital supply firm. National Center. He was previ- York City, under the firm name of
the company is building up These
are
small operations ously with Harris? Upham & Co.
Roebuck Funds.
^ Where
there was demand,
the gains were
spectacular its more profitable business of
and, despite occasional profit- developing complete systems
as
supplying
_
makers with
TteS®
taking, fairly persistent with
such
as
International
This announcement is neither an
and devices.
The
Busi¬
ness
Machines, Vendo, Uni¬
Like the
Match, Owens Corning
Co., Ryan
Fiberglas, Addressograph,
versal
old Glenn Martin
Aeronautical
i
offer to sell
nor a
solicitation to buy
any
of these securities.
offering is to be made only by the Offering Circular.
June 2,1960
NEW ISSUE
s
i
.rapidly moving out of the air¬
and
a
few
craft field and turning to
others
making the new-highs electronics and
anticipates an
lists
repeatedly.
eight-fold increase in sales of
*
*
*
-
General \Foods
In the
electronics, Motorola
and Texas
having
Instruments
troubles
some
were
with
their
previous highs which
gave them an erratic tone at
times.
...
♦
Steels
electronic
its
*
*
moved
narrowly de¬
spite the continued
decline in
R9^operating rate to below
ulS Were also
where
atchword,
ay
of
a
caution
and
The
Its work in electronic
gear is chiefly in navigation
equipment. Without wide¬
spread appreciation of its
electronic
work, Ryan has
been
available
10-times
at
key section
the big
little in the
determined price
ac¬
share)
Price $3.50 per
share
estimated
Copies of the Offering Circular may be obtained from the Undersigned in any State in which
Undersigned may legally offer these shares in compliance with the securities laws of such State.
the
UNDERWRITERS
than
earnings
less
First Broad Street
for this year,
"
Russell & Saxe,
Lagging Rubber Issue
United States Rubber
item
that
trian
one
has
is an
been a pedes¬
for the most in re-
39
Broadway,
-
Street &
44 Wall
St., New York 4, N. Y.
Wall St.; New York 5, N. Y.
-
New York 6, N. Y.
Inc.
V. S. Wickett & Company,
99
Corp.,
(Managing Underwriter)-
-
,
50 Broad
mo-
was *
per
gross.
capacity finally in the
ings.
doldrums.
(par value 10^
over last year when it
contributed less than 5% to
year
where the other
T .wtfh some predicting electronic skyrockets are sell¬
that the
rate will be down to
ing at 60 or more times earn¬
ait of
ummer
85,700 shares Common Stock
this
division
Inc.
•••
Sandkuhl &
1180
Co., Inc.
St, New York 5, N. Y.
Company, Inc.
Raymond Blvd., Newark 2, N. J,.
The
18
By Benjamin F. Fairless,*
long era of industrial peace. That
our
number one goal of the
President, American Iron and
But
decade.
for
we
modern
statesmanship
tions
•
viability is made by Mr. Fairbettering labor-management rela¬
problem facing the industry. Moreover, he
depicts a new approach to
foremost
the
as
substitutes and with
(within the industry, with
competition
warns
intense than ever. In order.to
meet these problems, and to attract needed capital for essential
improvement, Mr. Fairless prescribes a six-point program so steel
foreign producers) will become more
■
can
in this new decade.
reach its new horizons
decade
completely
a
it
the
new
good plant, a su¬
perior
product,
sound
manage¬
ment and a fine working force.
\
a
believe
the
problems
will be
solved if the indsutry will concen¬
trate on these points:
."
reality. Amer¬
must face
in
has
It
as
of
has no monopoly on
efficiency.
We have no
on ingenuity
or research.
the
appraisal of the steel industry's
less who
as
(1) Work earnestly with our
corner
on both sides of
employees and their unions and
bargaining table — a states¬ Many of our neighbors in this the public in an effort to
achieve
world community are already
manship which
will give even
lasting industrial peace.
fully capable of competing with us
more serious thought to the public
in techniques and facilities. There¬
(2)
Increase
productive
ef¬
interest and to the welfare of the
fore we must do everything in our ficiency through every means pos¬
whole economy.
The new labor
sible. /•'
*
""
! •'
• ••• > 7 "
agreements provide new avenues power — management, employees
and
union -r to hold our own. \ (3) Intensify our research
of approach to this problem, and I
pro¬
- v gram developing new steels and
hope that this work will show against this competition. -;
new
In our favor is the fact that, in
processes,- and opening new
a more constructive results than our
:"
• '... > •,.:
similar efforts in the past. ' We competition with foreign steel,, markets.
■,77.7'
cost are making progress, too, in em- • price alone is not the only factor.
(4) Maintain our leadership in
than ever before
Taut
the seventh
world.
ican industry
greater de¬
a
industrial
of
gree
is
need
The
Steel Institute
problems
as
20th Century
I believe we are still the
most efficient producers of mass
materials and goods in the world.
is
new
well
tages,
enters
that we
ogy.
steel—one
'
—
compensate for the wage dif¬
ferential with superior technol¬
expects a new approach
labor-management relations in
which will lead to a
in
And How to Reach Them
*.
Thursday, June 2, 1960
. . .
can
country
New Horizons for Steel
people believe
many
past. The
made in the
have been
■
Financial Chronicle
Commercial and
(2378)
.
of the six decades in
this historic century has brought
Every
one
problems and great changes
our industry.
There have been
new
to
a
natural
.
decade,
should
we
won
d
i
what
be
i
s
for
store
that
n
Benjamin F. Fairies.
a1-":,,'
-
.
Obviously, I cannot answer that
>
question. But of this I am sure:
we
are living
in a changed and
changing
world •— a
world
of
breathtaking advances in science
and of profound
uncertainties in political and eco¬
nomic life. The 1960's will present
technology,
and
problems,
new conditions, new challenges—
as
well as-the promise of con¬
tinued growth and expansion.
to
industry
our
new
How
This
all
can
is
7.\
of
to survive and
I
the
other
are-here
it
believes
or
It
union.
the
to
steel
the
in
I
needed
is
■
-
-
•
:
- -
gest four as being the most urgent,
and
plainly visible today.
No, the question is not how to
how to make
the
to achieve
in the industry;
way
a
labor peace
Continuing the present pro¬
(2)
designed to improve
the efficiency of steel plant
gram
operations;
I
Offsetting the steadily ris¬
(3)
ing competition from other
materials and from low-cost
steel produced abroad; and,
(4) Maintaining a fair level of
profits, and a fair allocation
of
benefits
the
of
produc¬
tivity increases, so as to at¬
capital needed for
improvements and
tract the
essential
expansion,
of
All
these
problems
are
related.
Their common
denominator is competition.
In considering them, it is well
to remind ourselves that, while we
are living in a world of bewilder¬
ing change, there are some things
closely
•
that
remain
unchanged.
The
multiplication table has not
changed one iota since the be¬
ginning of time. Two times two is
four, and all the electronic com¬
puting machines in the world can
give no other answer. Nor have
certain
laws
of
economics
been
only will they need to com¬
municate
more
effectively and
the
of
terests
worker
the
and
are not in conflict, but
identical. The employee cannot
company
are
have placed at the forefront—the
achievement of labor peace.
One
of
the
great
changes
in
their
are
the
of
and
jobs and their security.
sick and tired of strikes
inflation
which
robs
of the
creases
cure
and
for
and
needless
both
destructive
understanding and co¬
between
management
achieve
to
will
these
be
neces¬
ends.
I
devoutly hope that the efforts of
both
parties
to
achieve such
operation will be
more
co¬
successful
huge labor unions, and one of the
most
powerful of these is the
in the past.
Steelworkers
sides to search their souls to find
the
end of World War II, as you well
know, there have been five major
to
feas¬
senting
and
We can't very well
existing plants, repre¬
our
investment of
dollars, and spend
an
billions of
build
billions to
Our
must
many
more
plants
new
over¬
will
It
good
help to make' the
conscious of steel's
more
its
and
name
being
coordinated
value. It is
through our
Institute, and deserves the whole¬
hearted support of every member
company.
The purpose
The
major cause of the influx
foreign steel, as we all know, is
steadily rising employment
costs as compared with the much
of success in com¬
is to maintain a profit¬
petition
The aim
ways
future
to
they have been
should be for both
indeed,
are
reach
will
steel
*An address
General
and
Steel
May 26,
1960.
y
Metalcraft, Inc.
Stock Offered
First Broad Street Corp. and asso¬
ciates
offered
shares of
stock
at
share.
-77, 7 7
'
Depicts Need for Capital
as
The
times higher than theirs. As
result, of course, they have a
wide margin on which to invade
markets and
our
undersell
us
on
products.
many
opportunities for growth to
we
look can
be,, realized
are no
longer
valid—if they ever were.
Consider our
imports of iron
ore.
Last year we imported al¬
most 40 million tons, an all-time
record.
That
28% above such
was
imports in 1958.
And in 1950, the
record for the time
only
was
some
million tons.
We
are
search
raw
the
materials.
world
That
in
is
major reason I say and say
again: the answer to our problem
a
of foreign competition is not in
high tariff barriers. That's a po¬
litical game any number can
play.
If we raise trade barriers
against
by
raising
need
the
they can retaliate
them against us. We
rest
repeating in the needs us.
We hear it
mistakes
that may*
money
will - be
previous decades
of
known.
try
have
It follows that the indus¬
will
have
diligently
of
needed
we
set
to
than
ever
obtaining that
itself
to
more
the
task
the
world
as
it
The key, of course, will be the
same as it has always been in
the
this
free
must be
country of ours. There
adequate earnings, to at¬
tract and hold investors who want
a
fair return
on
their investment.
said —and
,
general funds of the com¬
chinery, equipment and replace¬
moving expenses; electri¬
ments;
cal
installation,
furniture
and
building fixtures for new offices
and plant and for general work¬
ing capital.
Metalcraft, Inc., of New Hyde
Park, Long Island, New York, and
Park,
N.
is a contract
wide variety of
Y.,
a
products in the metalworking field, produced in re¬
sponse to orders for specific items.
ment,
they
will
The
precision
require¬
invest their
products are
which
have
assemblies
or
parts
been
,
produced by Metalcraft by means
of metal
fabrication, welding
assembly. These
parts
or
such
as
and
ply
made
are
standard
test
for
metal
cabinets, vi¬
fixtures, power sup¬
boxes, electronic chassis, in¬
panels, frames and en¬
strument
closures.
For
31,
the
1959,
months
11
the
ended Dec.
sales
of
from
operations, of $151,392,
$1,003,597
net
profit
had
company
and net
equal
after Federal income taxes, to
Every company therefore must
not
only achieve an efficiency
which provides a sound
profit, it
cents per share.
must
also
preserve
its
own
fair
share of the returns from that ef¬
ficiency.
And, further, it must
keep its position clear to its em¬
ployees and the public, so that its
intentions
and
decisions
are
un¬
This industry has many advan¬
and
assem¬
articles
communications consoles, radar
blies
money elsewhere.
derstood.
often
the sale of
shares will be added
and used for additional ma¬
pany
bration
money.
If steel does not meet his
scouring
of
More
than in
Solutions to the problem which
assume the American steel indus¬
per
7\7'|7
,
precision
pro¬
'
;
Our wage costs are as much
$3.50
.•
from
proceeds
common
the
to
price. of
a
7:
Net
the
85,700
31,
May
on
Metalcraft, Inc. common
Rego
ducers.
will
men
''"y".
v
manufacturer of
'77 7/:'71
"■■■;'■ "-'77':
And
It
by Mr. Fairless before the
Meeting of, the American
Institute, New York City,
decade.
costs of foreign
wage
them.
with
vision, experience, and ability are
determined to keep steel out in
front. -Vr"
77 7 ■
777'
able industry.
lower
horizons
decade.
because
so
fourth problem to be faced in this
And herein lies the
eco¬
v
new
new
our
avoid
any
There
and
7*7
77.
_
of
other countries,
now
political
our
for steel in this
agement's; that job security and
employee welfare depend on the
industry's ability to ; compete at
home and abroad. / 7
v
public
of
ciples
nomic life.
Iron
ucts.
direc¬
By continu¬
only
our
technology, and our
products, but also develop better
understanding of the basic prin¬
68th
merchandise steel and steel prod¬
those
the years.
over
ing and intensifying those efforts
we should be able to improve not
challenge is theirs as well as man¬
seas.
nine
inflation.
union leaders
sary
strikes
in the future than
Since
these facts.
employees and their unions,
realize that this competitive
of
understanding
try is self-contained
facts that bear
American life has been the rise of
Union.
for
must:work -constantly
We
tions
in
efforts
effective
V surely do
want to know the
Mutual
its
7
only if capital is available for tak¬
ing advantage of them.
operation
keep
'
v.
which
feet
must
more
grow
a
planted
firmly on the solid
ground of reality. And certainly,
this will be true of the problem I
problems,
only-
problems can
severe.1 '77.
seven
a
Its
will
if the company does not.
equally important for them
to understand that the employees
lose in the end when they get a
wage increase beyond the amount
justified by productivity increases.
I firmly believe the steelworkers
is
It
to
pretend do not exist.
industry, dealing with
mind
industry.
the
benefits of wage in¬
unjustified by higher pro¬
ductivity. The problem is to find
The steel
a
a move is hardly
the American iron
scrap
of
which too many people would like
life
of
such
steel
kind
of problems that confront our in¬
dustry is seldom achieved over¬
night, or by short-term or high
pressure programs. We must keep
everlastingly at it.
It
is
important
for
the
employees and their unions . to
understand how and why the in¬
understanding
least.
of
do so,
True
them
facts
rising levels abroad, the gap
not
be narrowed—and our
any
an
above
far
•
were
we
for
They
some
if
Even
ible
place now as always will buy the
best and most he can get for the
are
continue
costs
•
production
,
of
problem
convincingly, they will need
also to communicate continuously.
more
on
These
This
bargaining process
Not
altered. The buyer in the market
-
Meeting Foreign Competition
our
to soar
On the whole front of competi¬
foreign com¬
work
better
for
all
concerned. petition is not peculiar to our in¬ tive effort, we must continue to
We cannot
Many factors are involved in this dustry alone. But in steel it is be¬ make real progress.
effort, but one thing is clear: the coming more and more critical. close our eyes to the gains which
companies will need to do a more Some industries,, in growing num¬ other materials have been mak¬
effective and convincing job of bers, are trying to meet the prob¬ ing.,:;;..'\
vv/.V- ■■■"'"
explaining their problems to the lem by building plants overseas. ,7 A great forward step was the
employees, to their unions, to the In effect, they are exporting jobs. launching early this year of the
is an ominious trend for steelmark symbol. This industry¬
communities in which they oper¬ This
American workers.
wide program is designed to help
7.
ate and to the country.
collective
prosper
'
see
better informed.
They are:
Finding
It is our re¬
that they are
tally it affects them.
break the union, but
(1)
of the competition
sponsibility to
Work
basic
if
However,-
by the
why it is happening, or how vi¬
Making Collective Bargaining
problems, I would sug¬
the
understand
not
industry, especially
foreign competition. They do not
understand what is happening, or
faced
both^y
•
with steel
and
Getting the Facts Across
with
thousands of our own steel¬
critical nature
wants,
~
in line .with our own.
wage more
"
-..
the companies.
'
steel
people—including
our
workers—do
possible to destroy
the employees and
in the
indus¬
industry,
the
products,
believe
many
st^j^aud no
industry
world, the great march toward
higher standards of living is go¬
ing forward, and over the years
this
will tend to
bring foreign
competi¬
producers in other countries.
to
problem but I do know that
the answer does not lie in any
effort
to
turn
back
the clock.
one
other / countries. "
com¬
part
of that program
naturally to a steel man.
Every
comes
Our great industry in fact owes
permanently fixed inits growth to our consistent and
All
over
the
remain
not
t
A
past,
the
of
within
tition
this
Unions
,
In the years ahead, it will be
more
intense than ever—compe¬
going
solution
^
.
.
7;\
that wages will
But we do know
try.
prosper.
know
not
do
V
'
years
advancement
must devote our utmost
us
the
Over
achieved?
which
be
!
.
tion has been a vital force
.
.
ever-mounting
of
fact
-1
check.
petition.
both sides
attention, if the industry is
1960's Problems Outlined
the
a war;
peace
the
while
increased
of this problem is
At the heart
experience
bitter
our
as
costs are held in
basic problem to
a
,
Of
be
"
t
>
in full measure,: can- other lands.
productivity
wins
one
no
lose.
our
Industry in the
.;•
these means,
nor
from
learned
ing
er
neither
the - nation's
economy can continue to support
the
senseless
extravagance
of
these recurring strikes. We have
first year of a
new
industry nor the
all of
sure
steelworkers,
this
in
that,
us
our
will
It belongs
that
am
now
not dwell on it
to history. But I
here today agree
of
strike of 1959.
the story of that strug¬
I
and
here.
put
have
'
the 116-day
You know
gle
one
over
longest and most costly
was
expansion.
It
is
only
I
dollars.
half billion
a
at
calculated
been
The
and
recovery
ployee communications.»
cost of these
employees in lost wages
strikes to
all
tremendous
Quality of material, promptness; every area of competition.
.
industryV of delivery and service are also
(5) Expand our export markets
important considerations for the
number two problem that of in¬
and develop new export oppor¬
creasing the efficiency of opera¬ buyer. And on these points Amer- ; tunities.
y-'v-i/f,
tions
beyond the present point. ican steel has the edge.
(6) Step up our efforts in pub¬
We cannot—and of course we
Here, we know is a two-fold re¬
lic relations, promotion and ad¬
quirement. It is for real cooper¬ would not—seek to lower, the
vertising— to insure greater ap¬
ation on the part of the union and wages of American steelworkers
preciation of steel's use and value,
employees and for constant im-> to the levels of workers in other
and its contributions to the econ¬
provement in the technology of countries." Nor do we have any
omy.,;
';• 7" ;> '
7\/'
production. Only by the unity of control over raising the wages in
over
steel. The aggregate
and
great
d e p r e s sion
and periods of
wars,
America
has
world
two
strikes
80 million tons of
These
strikes.
steel
of the current
-411
completion
financing, outstand¬
Upon
ing capitalization of the company
will
consist
common
Associates
Russell
of
275,700 shares
of
stock.
&
in
the
Saxe,
offering
Inc.,
Co., Inc., V. S. Wickett & Co.,
and Sandkuhl &
are:
Street &
Co., Inc.
Inc.
191
Volume
Number 5956
for
and Financial Chronicle
Economy
Billions of dollars in cash and securities—even the
nation's gold at Fort Knox—rest
doors.
Because
they
secure
fire is
in
welded
to
the flick of
a
above
be swung open
can
controlling inside temperatures,
•
'
•
V '
.V
',|l
"
BETHLEHEM
So. San
STEEL
^
but just about impossible to
unless," of course, you have the combina¬
— when the steel vault
get in
—
And bank robbery
shut and locked—belongs strictly to the
Vault doors like the
from steel
shown above
one
are
made
plates rolled by Bethlehem at Sparrows
Point, Md., the country's largest steel plant, and
at
.
Johnstown, Pa.
-
,
Plates have other important uses in shipbuilding,
bridges, large-diameter pipe, storage tanks, freight
cars,
and heavy machinery.
•/
I
COMPANY
,
General
Francisco, Calif.- Los Angeles
■',
should be locked inside by mistake, it's
tions.
that when a
so
.
are
world of television.
iSf
rf
'
:
rather easy to get out,
secretary's finger.
doors
condition.
minimum.';
If you
with
Vault engineers have solved such knotty problems
as
a
remaining
High-quality steel plates,
together in layers, reduce heat pass-through
perfect
country's liquid assets, bank vaults must be im¬
one
the vault are
protected from charring and blackening,
behind steel
most of the
protect
raging outside, the contents of
pervious to fire, flood, and earthquake. Yet 30-ton
giants like the
19
Versatility
...
vault
(2379)
Strength
/.
.
The Commercial
...
•
■'
Offices:
Bethlehem,
Calif.; Seattle, Wash.
'
Pa. STEEL PLANTS—Bethlehem, Pa.; Johnstown, Pa.; Lebanon, Pq.y Steelton, Pa.; Williamsport, Pa.; Lackawanna, N. Y.; Sparrows
SHIPBUILDING AND SHIP REPAIR YARDS—Quincy, Mass.; Boston, Mass.; Brooklyn, N. Y.; Staten Island, N. Y.; Hoboken, N. J.; Sparrows
-
Baltimore, Md.; Beaumont,
Texas; San Francisco, Calif.; San Pedro, Calif.
Point, Md.;
^
Point, Md.// -
/
The
20
(2380)
living and are set< on
making
the
attempt.
What a
calamity it will be for all of us if
they fail! Contemplate for a mo¬
ment the case of India. There is a
ards' bf
No Longer Can We Select
A Calculated Safe Risk
country which has thirty thousand
mouths to feed every day.
more
Continued from page 3
tional safety or of stopping eco- while eating
human
noiric growth. Of course I am not ber of indians greater than the
suggesting that it isn t possible number of people in a large ball*° pursue a middle course and roorn will have been born, all
bave a bit of each. Indeed, that wailing for food. By the next
is obviously the sensible thing to morning there will be many more
frame
and
spirit. If you
do not think this denunciation of
inflation
is
enough, then
multiply it by five and it will
still be true. We ought not to
run any risk*ofUnflation running
becoming
away and
of
feature
I
take
strong
society.
our
it
we
permanent
a
all
are
agreed
on
thf
But then look at
appalling risks we run if we don't have
inflation. What causes inflation?
The two strongest causes;^
that
dinner, a num-
do,.But Jt,isn ha saJa thing tb »d9» < new*Indians than the whole popu-
That isn't ^calculating a risk and jation 0f the Waldorf-Astoria
staying within the safety margin. Hotel in New York City. Yet
" is mipng the risks, in unknown India is a country where the
^CfL'fexp&g
f™* of 'he ?eehde,m^von
turn
have to take sS institutions depends absolutely on
iXhlTwhat would vouUkHo belr!gJable' not only to feed this
Any
wav
v0u
not,of
perhaps^ theare excessive Governonly ones, but the
do]jar? or national defense?
strongest
—
our
Qr
of
■
industry. If Government expendi-
„hm-rp
^
wte
?b'ytl?e
savings—then in either case you
get that condition of too much
mhn1fihp\Swt\^Lf^in?ldflStio°nr
which the short
is inflation.
name
r
W1,
.
n
.
^
Defense Spending.
Now I think we all know what
is causing excessive spending
Governments. Each one of us
could
doubt
also
us
these
that
knows
is
it
„owth
who
man
mean
sub-continent, giving access to
the Indian °cean' t0 Afnc,a' *9
Australasia, were to be colored
clamors
^ford^tO cut
per-
that
stand
I
not
am
trying
opinion
an
on
his mind to cut out this ele-
up
of
merit
running
safety
~
a
Or
lor
great
to
*
moment
,
look
risk
is
the
free world
the
.
inflation
of
lar^e
verv
of
.
other
the
risk
the
,
_
a
of
cause
at
tne
inflation,
tendency in recent years for
capital expenditures to outrun the
available
supply of savings. It is
not very difficult to cut back tne
rate
of
capital
expenditure.. In-
qJq
Sr/S
♦ imr
T
ran
JL
inS
rp
vwvLi«
„Tt:~
ha
i Vnnnnf
A
JTSSL"
SJItSlL
lii/I^ KiwJTvHc wZ Iwa
«
tn
hn
Inilt
if
cSmun
inwAa?i?Ar
AY
L-r
x
™XL™!^In
we
in
Tint
conscious
nine if
ever
pnv
of the
we
pocp
wp
rSs
we
Qrp
Let
me
to my second
move
to mention what is happening in
Latin America to make my point,
ex-
ampie, which is partly economic,
partly' political. I find it in the
great puzzle, which faces all of
us
jn deciding on the proper rerich and
iations between the
Again, which risk do you want
to run? The risk that we will overstrain ourselves? Or the risk that
Africa
de-
Latin
and
America
and
Southern Asia will fail, and think
failed them?
countries of the world
arid Underdeveloped
we
poor
countries. This is sometimes called
problem
the
of
and
Haves
I
have
been speaking
of this
.
Have-Nots among the nations, ITOdnitat "(Tan
president of the United States
to
report
Fo{
j
the
on
proper
aI£ F
forei
•
dimen-
collectors
so,
•
had
heard
until
of
recently. In another two years
or
......
virtually the whole of Africa
divided into wholly self-
will be
Here also, I think, the dilem-
run-
don't at least do what-
risks at
home—rising unemploy-'
rorq
And
a
return
we
abroad
run
if
we
nf
the
even
New
Deal
greater risks
keep up in
cannot
^rhafbeec^ema1CcategS
imperative in
world, and we
very well aware of the
our
be
tempted
African
that are
ou^
Cabin
pausing to
enorm)OUS
united
an(j
tribute to the
achievements
States
a
pay
^aj£
of
the
in the
jn
past decade
sustaining
the
to think of Africa and
independence in terms
mixture of Uncle Tom's
and George Washington,
a
But the American Negro has been
number of Western civilization
for three hundred years or longer.
a
smaller than
in economic
major effort
81X1311 beside
the
under-
many participants there may be, asking myself whether they will
there are obviously limits to what give Africa civilized government,
dSn't^ne J1" happe" i£ ^ey
tnf,W countn®s
j
inha^ahi
w_
man^ vpilc al i!,
annarAnf PL^n
apparent even in this citadel of
h
„„
no
°iTT JLS7
" frJflZts^f„!ka£ d° i®1
or to
other.
good either to ourselves
the under-developed countries.
.
,,
its name—-is
rpkiti^liv
arf I p1e0p ^s'
Lhl lrlfi sophisticated, largely
urban population at one end, and
a
a^d
The white
p??ple' o£ d«"
men
at ,tl?e
went
Satmcpunjrt:. within the
into
memory
x men still living, for the pri-
_
it
and
vanity.,; Perhaps
tively cling to
our
all like our own
as we
be
may
a
all instinc¬
birthdays, just
we
best.
names
Nevertheless, I can give
you three
why, in spite of all that
said, I still look to the
future With cheerfulness. To the
first I will give only a sentence,
since it would, be an impertinence
to say more. It is in times like
reasons
have
I
in
"calculated
these that every man most needs
is
to
a
them
trust
rest
the
just
risk"
will
far, and for
have enough
so
will
we
we
say,
to be safe. But if I read tne
arms
history of the last three years
correctly, it means the end of cal¬
culated risks in foreign policy. We
cannot any longer trust the Rus¬
sians up to the point where real
risks begin, and then stop. We
have
either
got to trust them
quite a lot, or not at all.
the
Now
risks
trusting
of
too much are very
Russians
the
well
spread across the newspapers
are
frequent intervals. If we
trustful, if we let down
our guard too much, then we may
be opening the door to the world¬
very
wide
the
of
success
Communist
conspiracy. I would not like to
anything to minimize the scale
of the risks that a policy of trust
say
would
run.
But I sometimes wonder whether
Americans sufficiently realize
faith to live by.
My second reason is perhaps
only the secular version of the
first. It really is true, as the phi¬
^
losopher put it, that the secret
happiness is to live danger¬
ously.
A
totally secure world
of
would be
that posed no chal¬
one
lenge to human courage and hu¬
man resourcefulness. Even bank¬
ers must sometimes get tired
of
security. Once you realize that, as
in riding a bicycle, you can stay
upright only by keeping moving,
it is possible to get an enormous
zest out of going to see what there
is
too
are
next
the
round
corner.
And, thirdly, in these appalling
that
choices
have
we
there is sometimes
criterion to assist
to
gamble
to
make,
a
fundamental
us.
If you've got
something, when¬
gamble on the en¬
largement of the human spirit.
You know the old gag; that the
only lesson you can learn from
history is that you can't learn
anything from history. I don't
ever
on
can,
you
the
opposite risk, the risk of not
trusting them enough. Suppose it know if that is true — I think
is true that the dominant party probably not. I will give you an¬
in
Russia
wants
peaceful
co¬ other epigram—the chief thing to
existence. Suppose it is true that be learnt about man is that he
they want to devote their ener¬ does learn.
:
gies to raising the standard of
I won't weary anyone by going
living of their people. Suppose it all through the examples I have
is true that they are getting
a been
giving to illustrate how this
bit
scared
of
the
Chinese
and
thought illumines the choice. I
would like to come to terms with
will refer it only to my middle
the West. Suppose, finally, that,
example, the emergence of the
wanting all these things (as we
under-developed peoples of the
want peace), they are neverthe¬
world.
Basically,
our
dilemma
less
nervous
about
the
extent
to
not
unreasonable; they might be
correct. Then, if we do not show
enough trust
to
meet
them
half
throwing away the
best chance we have of avoiding
way,
we
are
World War III. And if
one
tenth
part of what the scientists tell
us
strengthening the But in parts of Central Africa, about total nuclear war is true,
defenses of the free world. The the grandfathers of the men who this risk is even greater than the
other mature countries, them- are now-forming governments had other.
selves now restored, are taking never even seen a wheel. Now
Well, which do you regard as
»p the load —and doing so, I please do not think that I am the greater risk—Communism
or
would remark parenthetically, to opposing this rush to independ- destruction? Of
course, I'm
not
a greater extent than perhaps ence. On the contrary, since we trying to
say
that we have to
Americans realize. We in Western have no
Eur°Pe are so much
the United States
terms that even a
on our part looks
the States. Aid to
doubt that this
no
instinct,
an
it
of
and
alternative, let us do it
as gracefully and as quickly as
we can. But I cannot help asking
myself whether these emergent
governments, so fierce in their
nationalism, will be able to
is
terms—that
think
governing states
capjtai to: other countries, whether
^ goes on loan or as a
j
cannot mention this subject with-
run
ment, falling sales, industrial unrest, perhaps even—horror of hor-
of HJitler's
possible to
end
to
used
which they can afford to trust the
clear enough. There are governing states,
obvious limits to the extent to
I often wonder if we fully capitalist imperialist West. I am
which the richer and more mature realize what that means. Anybody not suggesting that these suppo¬
countries can go in exporting who has grown up in America is sitions are correct. But they are
2Lfotdine ^
depression. We
great
threat of
It
the
since
war.
1S
ma
vprv
Se
can
easily stated. It is this—
can we trust the Russian Commu¬
nists? That has been the question
Dilemma of Foreign Aid
exerfsomeTonlrol3 'HemaaTa
No^
iaTfoTuvtagTf
pretty
otetina?e skeptic Ibout ^th is no longer a matter for ^ir Peoples^and what will hap"iT16riC3 31 O n 6* Slit IlOWGVCr PGH if tllGy C3111. I CSnnot IlGlp
that
dilemma
this
of
essence
very
at
economy
f small way, m 1958. But can you
the
politically nor economically could
we afford it. Perhaps I need only
to
this controversy. I am only mindful of
the fact that anyone who makes
express
towards Soviet Rus¬
sia and World Communism. Now
should adopt
known in the United States. They
an
useful plant.
dilemma in terms of the financial
be given to these
few voices
raised in
public m ^as recently been neatly chris- emerging countries. But there is
favor of an actual reduction m tened the "North-South"
problem a purely political side to it, about
our
preparations Tor
defense. to distinguish it from the familiar which I should like to speak for
Even those who think they are
"East_West" cleavage. I recall that a few minutes. One can hardly
large enough seem to be m a it ^ a probiem to which Mr. Ben- open
a
newspaper
these
days
minority, and there is a great deal
p. Fairless, President of the
without reading of a new African
of logic behind the doctrine that
steel Institute, gave a great deal
nation that has attained sovereign
we
have been neglecting certain
0£ bought and attention a year or
independence. Some of them bear
areas of defense. You will under^wo ag0, when he was asked by names that no one but the stamp
mine?; I hear very
second example. For my third,
I take one, that is in all our mijids
—the dilemma of the attitude we
my
be
Now I have
was
pointed we can simply go back to
where we were before. Neither
spending-—eiyher m your
country or in
Yet, Views Future Cheerfully
dilemma
North-South
The
;
a
a
not
if.the whole of that vast
security of 1860,
"No, thank you very much."
I say
Take
Toward U. S. S. R.
to
Atttitude
economic
between
and
penditures. They are all chicken veloped
compared with the costs of and the
we
fte
been horn in the
blindly.
haps the most dramatic, but only
one among many. Let no one
imagine that, if the revolution of
increased expectations is disap-
feed
Can
or
should run
we
tempted even to slow
inflation would weaken the nation
more
than
the
arms
would
strengthen it, or the enthusiast for
growth who doesn't know the difweed
lem of excessive Government ex-
defense
man
a
ference
things that create the prob-
defense.
take a look at.the ™ap of "J®
worId' and imagine what it would
that
mohr'eask whether without stop- Communist red,one example,
armam?nts
or yellow
pjag
the resulting
That is only
no
category of spending to be cut
out, whether it be farm aid or
foreign aid or pensions or welfare
or something
else. But each one
of
nrkends
"w —Jrr'
for
by
nominate
easily
""""
rriticize
Safe cho?ce
the
prea?hS about the dangers
-iS iiS saving what
?£ ^ ^ ^0 about drfenfe and
collections,
or
if industry's capital spending
who
runs
ahead
of the community's
ture runs ahead of tax
T
make
vnn
Thursday, June 2,1960
,
if we at¬ vfor > the worldt exchange their
homes for safe ones in the valley.
the process
We are all living high up on the
down, let alone bring it to a stop.
How
can
you
calculate these slopes of the most dangerous vol¬
cano, the world has ever known.
risks? How cani you do more than
if you ask me
choose which | set of
risks you But for me,
whether I wouldn't prefer to have
want to run, and then go forward
risks
ever
ing of the whole people. Can we
sisss-wsss asrasrsss'ais a&WsSSaffl
capital expenditures by
rate
Financial Chronicle
Commercial otic?
have
that
one
that
me,
have
we
them
the
or
tonight.
burden
and
marvel
I
other, still less
to
choose
thank
I
does
shall
between
God
not
rest
never
that
upon
cease
at the fact that there
to
are
men
who, by running for public
office, ask for the crushing bur¬
den
upon
of
final
choice
to
be
put
their shoulders. But I do say
that
we
have to run some risk
either of being "soft to Commu¬
nism" or of going to the brink
of
total
war, or perhaps of both
together. Not only some risk, but
a very
big risk.
-
there
is
old
the
of
one
liberty.
Liberty without responsibility can
be
disastrous.
there
until
Should
wait
one
is
proof of responsi¬
bility before granting the free¬
dom? Or go ahead at once in the
confidence
breed
self
will
freedom
that
responsibility? There are
But for my¬
way.
prefer to gamble on the
risks
either
I
teachability of
♦An
man.
address
by Sir Geoffrey at the
68th General Meeting
of the American
Iron and Steel Institute, May 26, New
York
City.
Schroder Banks
Appoint Three
The Directors of J. Henry Schro¬
der Banking Corp. and Schroder
Trust
-
Co.
have
announced
the
appointment of Peter C. A. Car¬
penter, R. Canon Clements and
John I. Howell, formerly VicePresidents, to Senior Vice-Presi¬
dents of both banks.
All
three
officials
have
with Schroder Banks for
a
been
num¬
ber of years. Mr. Carpenter is in
charge of Latin American business
while Mr.
Clements
is
in
charge
-
Now
only
Not
some
my
purpose has been to
at
all. For one
frighten.
thing, all
thinking
scared
they
will think that
men
must
be
already. If they
are
pretty
are not,
of the Domestic Banking Division
and is Chairman of the Credit
Committee.
Mr.
Howell
is
in
charge of European business and
is also Secretary of the two banks.
not
thinking men. And
an Example
"?3ry PuJP°se of stopping the for
Joins Courts Staff
another, every time I prove
risks we run if we endanger it.
But there are also enormous
v? trade, the first people en- to
(Special to The Financial Chronicle)
myself that we live in a very
risks if we hang back. Whether slavln£ the second. Now, in the
Says There Is No Safe Choice
We' hke it -or -not; there has been
.of independence and na- dangerous world, I also go on to ATLANTA, Ga.—James E. Ben¬
reflect that I really don't
regret nett has joined the staff of Courts
in the world what has been called tionalism, this savage people is,
it. Indeed, I think I
positively & Co., IX ,Marietta Street, North¬
n
?uU have my first a revolution of expectations. m substance, put back under the
prefer it that way. One has often
?.ll®mnla-. 9rn..the 22.e kand Jhe Whether we believe they can do control of the first.
west, members of the New York
read that the
people who live Stock Exchange. He was previ¬
?' 911
o
r it or not, all these countries are
What appalling risks we are
hand, the nsk of endangenng na- determined to
on
the slopes of a volcano
raise their standlead ously with the Citizens & South¬
taking!
are
all
Cites India as
,
,
iir«u
a.
•
A^d yefwhatappallteg
very
happy
lives
and
wouldn't
ern
National Bank,
Number 5956
Volume 191
.
.
.
The Commercial
and Financial
Chronicle
(2381)
Tomorrow starts with steel.
ijii
i
\
i 1.
.
Planning for tomorrow is something we all like to do.
to
plan ahead. So do adults. And so does
That's
why
we
last decade and
the steel, for
a
Kids like
U.S. Steel.
have spent more than 4 billion
dollars in the
and better steels. Take
half to bring you new
backbone of
miles of Interstate Highways scheduled to be
example, that forms the very
America's 41,000
Right
now,
dozer blades
in
are
every
rollers with hardened steel prongs,
packing down roadways
without breaking
f
-...
hillsides . .. sheep's-foot
like the one above, are
massive shovels ram
their extra-tough steel
•
t
i
■■
-1
.
f
/•
.
.
•
■
i
;
*
;
i
.
it
•
.
the completed sections of this great
on
new
highway
roads 30 per cent stronger
of
and much less expensive to maintain
thousands of feet of steel guard rails divide opposing lanes
...
traffic, making driving safer than
dreds of underpasses
steel,
ease
ever
before... and hun¬
and bridges, which owe their very existence
the ever-increasing flow of traffic.
super-tough steel
part of the country,
chewing out huge
v
And,
system, welded wire fabric actually binds the concrete, making
to
completed by 1971.
..
r
teeth.
1
■
-"I
through rock
ical
highways is
a
vital part of
designed to lighten your work
widen your
Watch THE U.
world.
,
'
our
*..
job at U.S. Steel
brighten
your
—
a
job
leisure
-
S. STEEL HOUR on television. See your newspaper for time and station.
21
Removing the Danger to Our
Future Industrial Growth
business?
and
put up the money
complete steel plant
a
now
be
can't
of
We
build
to
the amount period of 25 years or so are some¬
what like the common law.
a
write off each rule has been issued from time to
year in order to come to zero net
time to cover particular situations
property value at the end of 12
which seemed to require it, but no
instead of 25 years.
We might
comprehensive official code ex¬
then say that because
12 years
ists
which is expressive of all
later
our
dollar will be worth
generally accepted accounting
only half of what it is now, if
history repeats
itself, we must principles. This may have been a
wise approach, but the result has
provide an additional million dol¬
been varied with incomplete cov¬
lars through annual depreciation
you. tell
us the plant
complete unless we put
Did the manage¬
million dol¬
of 25 years of
successful operation? Why did you
up more money.
of America
the
of
decade
the
continue to
healthy steel industry, ade¬
to
supply
the
nation's
sixties,
have
penny-wise and pound foolish" tax
into
move
we
a
quate
must
we
and
This
means
capable
gen era
a
of
ting
the
statistics,
of
most
funds
the
steel
Joel
as
Hunter
much
country's
growth might require. This is not
a concern of the men who
sell steel, every citizen
interest, because steel is
truly basic to our whole econ¬
make and
so
an
Profits must be realized, in
spite of steadily rising cost levels
omy.
limits
and
be
placed
the
on
These limits
petition:
prices
on
which
goods
can
sell.
we
imposed by
com¬
ourselves;
are
from
among
other materials which
increas¬
are
in
plants cost so
steel
last
and
long.
so
Industry
from
$0.80 to $1.20 for each dollar of
plant investment; 1959 was $1.01.
Few- other industries are this low.
sales
merely
has
because
important
is
Depreciation
en¬
largement
of Sales to Investment
Low Ratio
and
such
for
dis¬
are
show.
able to
to be
seem
main¬
tenance
dollars
our
appearing more rapidly than we
re¬
quired for its
own
so.
and
costs
opera¬
tions
and
becoming
in¬
In
accumulating
publishing income
unrealistic,
creasingly
through its
own
which
recent
in
range
years
Any industry which has a large
inflation.
It
is
of those nag¬
one
ging things that simply won't go
steel; and finally, there is the steeL way. It is a very real problem to
from
revitalized
foreign
plants the steel industry, and its influ¬
-
able
have
captured
the
of
part
a
consider¬
markets
we
formerly enjoyed. While we have
long been producers of one of the
lowest-price structural materials,
have
we
now
to understand
come
is felt in
ence
number of ways.
a
One of the most subtle is its effect
depreciation
on
The
expense.
theory of accounting depreciation,
as
practice it today, is that
original dollars of the
we
the cost in
that the rate at which steel prices
million-dollar property we spoke
will
of will be allocated to each
be
increase
in
the
future
substantially less than
must
in the
past.
Cost
Reduction
In
Spending Plans
I
consequence,
there has
say
venture
been
never
when the American steel
has
given
industry
attention
more
to
time
a
to
the
reduction of costs of all kinds. At
every level of management, the
drive is on to reduce costs.
Our
industry has scheduled $1.6 billion
for
plant improvement in 1960—
second
only to the $1.7 billion
spent in 1957. According to public
reports, little increase in capacity
is expected from
this spending.
The
greater part
is for
of reducing
costs.
pose
of
kind
this
ernize
pur¬
Spending
to mod¬
is necessary
plants,
our
hours
the
and
reduce
man-
production.
speed
Enlightened labor union leader¬
ship recognizes the urgency of
cost reduction from the
standpoint
indeed,
national
welfare.
All
thinking
people
recognize the importance of our
having efficient, low-cost steelmaking facilities. Over a century
of industrial history demonstrates
conclusively that saving of human
of
labor
is
labor
lot
of
and,
the
the
way
to improve the
common
man.
Steel
companies are certainly
willing to spend for new equip¬
in
ment;
choose
will
the
fact,
the
the. most
limited
This
capital
return
speculation
turn
levels,
other
period of
must
is
which
production
many
is
to
particular things that
bring
able.
the problem
things
time.
be
The
return
funds
a
with
avail¬
calculated
depends
markets
for
and
expected
over
to
necessary
replacement.
a
out
go
It is
more
buy
and
just
a
simple
as
that.
as
If
we
can
assume,
for
moment, that there have been
the
ment
has
of the
this
problem.
The cost
machine, which is just
the same in all respects as the
machine bought 25 years ago and
now
new
completely
worn
out, is not
$1 million—but about $2.5 million.
But the company has gotten back
only
its
which is
to
up
original
investment,
$1 million. If it intends
stay in business, it must come
with $2.5 million, and it is $1.5
million short.
money
come,
of
earnings
either
Where is the extra
coming from? It
course,
or
from
borrowing
or
from
only
retained
the
outside,
can
equity
money.
Department
is
not
necessarily income to the econo¬
Treasury
him from asking such
questions. It should not, however,
confuse us—nor, for that matter,
anyone else.
mist
prevent
which
factor
Another
tends
At
are
this
likely
to
say,
"Why
should
decisions
even
of
our
Using the Lifo Principle
accounting for inventories
Lifo
is
method of matching current
a
replacement
inventory
of
cost
activities
continuing
F,
fruit
better
still
in
of
Congress
plants.
this
As
learn
we
about
depression-afflicted budget.
proposal was made in Congress
to reduce depreciation allowed to
all
taxpayers
by ,a:v flat
25%.
Treasury ■: Secretary > Morgenthau
proposed, instead, to give his In¬
ternal Revenue Department the
A
of
that
This
job.
we
was
preciation allowances by making
the taxpayer prove he was en¬
the
evitably
titled
to
present
Since
the
find that much of our
equipment is no longer
the best tool for the job. The di¬
reduction
rect
endeavor
furnace
no
iron
coke
and
open
an
blast
Oxygen
hearth
it goes, with
courageous enough to pre¬
shops.
man
And
all
changes
agree,
many
coming.
are
impossible
to
it
claimed
he
is
almost
conclusively
is retired,
prove
not too difficult to cut the
was
allowances down and collect
Bulletin
taxes.
F
came
more
few
a
earlier
ing
tax
as
codification
a
experience in
depreciation
of
reduc¬
and
is
re¬
markable because it is official and
yet is isn't. The Treasury Depart¬
surely be making steel differently
within the next generation from
ment
the way we
human in spite of what some peo¬
And
make it
now.
have these
we
so
two fac¬
tors which
plant
jeopardize the value of
investment: the decline in
value
of
is
it
says
Revenue
but
ple
be
may
times,
After
seem
only
a
"guide;"
agents, being
inclined
to
to
it
use
only
think
as
at
bible.
a
all,
and
processes.
the Bulletin lives are
long and the rates are low, and
there is nothing else in
official
print. Fortunate is the taxpayer
fect
our
who
the
dollar
and
techno¬
logical obsolescence of both plants
They directly af¬
plant values, and the an-!
recognition ;of depreciation
nual
should take both into account.
'
•
-
•
;
•
•
,
-
/
\
Law Prevents Faster Writeoff
What
is
of 25 years,
ence
that
we
have
can
will
we
have
carry
no
any
whatever for it 25 years later.
Neither can we expect our cur¬
use
rency
years
value
from
Suppose
to
be
the
same
25
now.
should say to our¬
selves, "This equipment ought to
continue
to
neither
perseded
that
we
be
the .best
job for the next 12
time,
wear
out
nor
by something
as
best
we
tool
years.
be
better
can
can
for
It
su¬
in
guess."
get
.
shorter, lives
ap¬
proved. I go back into history only
because the same theory still pre¬
vails: the taxpayer is required to
to
prevent us from
writing
off
our
million-dollar
property addition at a faster rate
than $40,000 a year?
Why should,
we
not say that 25 years is too
long a time?
Even though the
facility might reasonably be ex¬
pected to have a physical exist¬
assurance
given the force of
practical purposes.
by
law, for all
identical,
means
no
defining taxable income
accounting rules for deter¬
and
mining income have had consid¬
erable influence, each upon the
other. Generally accepted account¬
ing principles have governed the
of taxable income
determination
in
absence
the
the burden of proof.
Aside
from
the
tax
amortization
erated
on
de¬
preciation which arises from the
fact
are
that
basic
steel
companies
large enough to have a num¬
ber of shareholders and be
regis¬
tered with the Securities and Ex¬
change
Commission.
company
stocks
are
Most
listed
steel
on
se¬
curity exchanges, and the accounts
must be audited
by certified pub¬
Cer¬
under
tificates of Necessity are instances
changes in the tax law in¬
general accounting in
where
fluenced
practice if not in strict theory.
The Government Certificate of
Necessity program was a wartime
measure
designed to encourage
building of industrial plants.
was the right to de¬
duct
from
taxable
income
a
the
The incentive
greater portion of the cost, more
rapidly than ordinary tax depre¬
ciation allowances. The objective
In
achieved.
certainly
was
the
eight years since 1952, the steel
industry added 40 million tons of
capacity—an expansion of
37%.
This was made
ingot
than
possible,
billion
the finishing ca¬
with it, by the $2
additional tax deduc¬
with
to
pacity
go
of
tions for rapid
This
was
a
amortization.
very
thing for
industry. It
good
the country and our
is too bad the program came to an
end.
Less than one-third of our
total
United
industrial
States
plant is modern,, in the sense of
being installed since 1950, accord¬
ing to a McGraw-Hill survey.
Under
could
funds to ad¬
extra
the
'
,
Depreciation Abroad
Faster
The
we
circumstances
these
use
vantage.
is
States
United
not
the
has
used
greater depreciation allowances to
only
collector,
there is another influence
of special laws or
regulations to the contrary. On
the other ;hand, lifo
and accel¬
more
later
this
except, we
and great
We will
amount
depreciation
until after the property
years
so
dict the final outcome
will
the
ovens.
threaten
is
ore
eliminate
to
converters
melt
of
done, and the Rev¬
did reduce de¬
Department
enue
doing every day, we will in¬
are
new
help out the govern¬
ment's
goes on,
the sci¬
process
more
entific basis of the things
when
1934
searching for
was
to
revenue
in
back
event
an
of
This Bulletin grew out
property.
producing iron and steel, of heat¬
ing, forming, and all of the. ac¬
tivities
that
take
place in bur
as
Bulletin
as
preciation rates are set out for a
are
ways
known
large number of different kinds
it is certain that these efforts will
bear
is
rules
rather remarkable document,
a
in which the useful lives and de¬
accelerating, and
and
accepted principles, the rules are
While
Treasury Depart¬
these
of
ment
to
in
research
Our
application of generally
the
flect
the rules
the steel industry.
We
been privileged to observe
this.
will
point, the stockholders
law,
case
highest tribunal.
Federalists Bulletin F
in
improvements
to the owner.
or
One
complicate the issue is the growth
of research in industry, particu¬
the
Complicating. Issues
income to the
is
What
law.
cial
Incidentally, this helps to confuse
the shareholder and perhaps
no
changes in the art, and that the
identical machine bought 25 years
ago will be replaced, the manage¬
re¬
than the outlay, because the out-
period of 25
years by successive writeoffs to
expense.. Theoretically,
the next
generation will find that at the
end
of the
25-year period, the
original cost of this property has
been thus wholly expensed. At the
end
of the
25-year period, the
facility will suddenly collapse. As
the professional accountants are
careful to point out, accounting
theory ends at this point without
regard to what happens next. The
business manager would
be in¬
clined to go further and say that
having gotten its
money
back
through the charges for deprecia¬
tion over the years, the company
has or should have the $1 million
operations
long
a
considerably
on
year's
made
be
the rules say we
because
technology in
investment
in
properties which: the past few years which outstrip
last a long time has a problqm,, 4he
developments of the preceding
People get tired of hearing about generation. We will not stop with
ing in importance and displacing
which
we
always buy something better.
We
have
,
this prop¬
of
similar comment
with respect to all
A
rules.
the
can
cannot. against current revenues from
sales. It is specifically sanctioned
What rules? Who made the rules?
another
First of all, the income tax rules. by the rules, and the underlying
ent kind.
!'■
The assumption that we would When corporation income tax
principle has wide support in the
replace a
25-year-old piece of rates are 52% for the Federal, and literature and practice. The use of
equipment with an identical facil¬ more for the states, accounting current value dollars .• instead of
ity
is, of course, absurd. This practices are very strongly in¬ historical cost depreciation is also
simply does not happen. Changes fluenced by the rules which gov¬ a means of matching current costs
ern
the taxability of income.
It with revenues; the identical prin¬
in the art have produced better
equipment which operates at less is said with some logic: "Why ciple which is the basis of lifo.
write off more depreciation if it Yet a specific rule explicitly for¬
cost and produces more. The old
equipment is obsolete, which is to is not allowed as a deduction for bids the use of current value de¬
tax purposes?" In theory, the in¬
preciation in excess of cost. Rules
say that while it may be mechani¬
cally as good as ever, it simply come tax is imposed on net in¬ accountants must follow are made
isn't good enough any longer for come. In practice, income is very by their professional society. Since
today's competitive economy. So narrowly and strictly defined by the SEC" and stock exchanges re¬
we
never buy the same thing to
Treasury Department rules and a quire the accountants' opinion to
replace something that wears out/ great body of statutory and judi¬ state the financial; statements, re¬
$3.6/.
>
$40,000 annual
inflation, but unfortunately
cannot do it. We cannot do it
and
and also by
consideration of a differ¬
larly
|
to
have
now
'
This is fine; this might do very
well to cover both obsolescence
stages of useful life,
last
year, chemicals $1.51, textiles
$2.59
and
electrical
machinery
Paper, for example, was $1.40
fundamental
:\vr
erty..^,'-'
of ^ the
plants in various
facilities in our
$40,000 a year for the
next 25 years. I would like to talk
about property depreciation as an
economic fact, because the way
we
now
take it into account is
f i t a b le
industry,
$160,000 instead of
cost of ownership
diversity
and
and
again
amount
the issues; sometimes
inconsistency seems
result from the application of
of
erage
our
spending
We therefore double the
power.
we
are
answers
saved
we, are
number '
will average
p r o
of
get
to
back in terms of
money
*
order
in
writeoffs
knew were
you
because the
issue is never isolated in such a
fashion. The whole matter is ob¬
scured
by
other
changes, - the
least,
to install a new piece of
equipment which costs $1 million
in additional charges to
depreciation
of
prepared to give to these pointed
questions? For the -time being at
today
for
which
kind
What
to
money
replacements
of
coming?
lay is certain and will affect our
costs for years to come. A decision
expense
provide
for its defense.
enough
aside
depreciation we
-
end
care
property
results
commerce
set
take
depreciation laws,
Mr. Hunter shows that our present system: (1) exaggerates income;
(2) diminishes tax revenue; (3) retards industrial development; and
(4) permits value of plant investment to be jeopardized by price
inflation and technological obsolescence. The industrialist notes en¬
couraging signs of awakening by Congress and CPA organization and
hopes that either through changes in our accounting rules or tax
rules the danger said to confront our future industrial health and
growth will be removed. Of mora than passing interest is Mr. Hunter's
comparison of our depreciation laws with those of foreign countries.
Critical of "our
at
not
By Joel Hunter,* President, Crucible Steel Company
Neiv York, N. Y.
lars
therefore double
We
in this
invest any more money
ment suddenly lose a
the
Thursday, June 2, 1960
. . .
(2382)
we
As
Financial Chronicle
Commercial and
The
22
which
country
stimulate
Canada
doubled
industrial
did
its
If
years.
the
ingot
we
development.
thing and
same
capacity in 15
the 19
compare
industrialized' countries
more
the world with the United
we
find
tries
the
permit
seven
allow
of
States,
of
eight coun¬
shorter
lives while
rates of
laws
accelerated
Ten
writeoff in
the first few years of the life oi
Accountants are
governed by the property,-as an incentive for
what is known as "generally ac¬ modernization.
In Great Britain,
cented accounting
principles" in Belgium, Holland
and Sweden,
their
certification
of
financial this amount is between 30 and
statements. This does not always
33V3%, and in Argentina it is as
coincide
with
the
income
tax
high as 50%.
In eight nations,
lic
to
accountants
who
must
certify
their annual reports.
rules. The
have
been
accounting rules which
formally stated
over
a
depreciaton above our rates.
an
additional
entire
plant was
permit
the
correct
for
inflation
revalued to
which
had
Number 5956
191
Volume
try, the problem is not
£ is aggregate without revaluapermitted to exceed, cost
!'°1p
m
in
tl
'
I
I
add up to
features
facts
affects
in
some
Financial Chronicle
steel indus¬
ours
degree
property.
business
can
be
hurt
have developed abundant evidence
It
that
an
every
being
Small
than
more
big business because small busi¬
may have more difficulty in
financing property replacements.
ness
the sad con-
'fusion
that the United States' tax
depreciation laws are the most
restrictive in the world.
Tt is unfortunate that the extra
writeoff- available under our Cerufirates of Necessity must reduce-
All business is affected in
less degree. The tax
more or
burden rests
heavily upon those which
require larger
plant properties
more
and lighter upon those with little
or
no
(H383)
alone.
corporation, partnership and in¬
dividual that pays income tax and
has depreciable
not add up to
most oi the 19 counmore than one of the
the
have mentioned.
But
have mentioned
But
number:* do
Jq because
}L have
S
It
the revalued cost.
above
or
EL e
The Commercial and
particularly about the
in f^ctepreeia-
:urred, and
...
depreciable
industrial
development
is
retarded,
and' individual
members of Congress have shown
growing concern. I am
told
a
questionnaire on depreciation will
be
soon
sent
Department
taxpayers,
larger
to
by
a
corporations.
all
of
This
is
Certified
are
given such' recognition
this
j.
accountants
change
their
indications
views.
increas¬
an
ing number of CPAs
are
with
the
present
their clients'
effect
of
accounting rules
the
the
on
unhappy
go
become
and
less
more
atable
at
I
will
has
recently
restructured
ceive this questionnaire will have
the
the
tax
rules
will
be
overhauled
first, a change of one will most
probably influence the other;
,'X
An economist would say we are
not
being
altogether
lars
are
believe
back¬
or
which
in
ments
main
to
unsolved,
our
and
once,
future
industrial
♦An
68th
Meeting of the American
Institute, New York City,
and
Steel
May
26,
1960.
V
are
cf
.
,this
statements
income
These
kind.
certified by the CPAs and ac¬
cepted by the SEC and stock ex¬
changes,
distributed
and
shareholders
and
to
FOREIGN
our
o
general
public.
again, the dilution of
the single transaction in the large
body of the whole. Nevertheless,
industry is now in the unhapoy
There
is
position
of
historical
being
cost
less than
depreciation in
ture.
I
were
tried
1960
to
prevented
served
the
fu-
that
to
~
the
for
under
....
error
*
Revenue
a
Act
of
heritage
poor
exploration and production research efforts and
field tests. In addition to a number of important prod¬
uct
was
our
Despite increasingly keen competition,
was surprisingly good. We increased
national average.
All-time sales records were set in tires, batteries,
accessories and LP-gas. Efforts to reduce distribution
our
-
are
disappearing and we
reporting more income than
actually have, because the tax
ana
accounting rules require it.
are
we
than
more
our
i
eco¬
the
only
in
ant Pr°duces more
npj3 lri taxes on corporate
uLn?
mcomes, and the
•
•
.
than
and
new
increased to
dividends in 1959 had a value of
equal to about 50 per cent of earnings.
Regular cash dividends for the year were supplemented
by a special dividend in Standard Oil Company (New
Jersey) stock with a value, based on the December 18
market price, of 53.1 cents per share. We have paid
dividends for 66
consecutive years.
been
speaking
598,280
640,648
707,400
691,800
661,466
645,745
MARKETING:
Refined
per
products sold, barrels
day...................
Retail outlets served
28,380
29,032
1,566,993
325,416
1,422,498
277,183
....
Natural gas
,
sold, thousand
c cubic feet per day .:....
.....
( Crude oil sold, barrels per day...
TRANSPORTATION:
252
PEOPLE:
17,568
155,332
152,796
90,191
miles.
Tanker and barge traffic,
million barrel miles
281
17,609
Pipelines built, miles
Pipelines owned, miles (year end)
Pipeline traffic, million barrel
93,710
;
158,553
43,569
348,411,000
Stockholders (year
end)........
Employees (year end)
Wages and benefits
♦"Dividends paid"
151,937
v
46,033
352,469,000
include the value on this Company's books of the Standard
stock distributed as a dividend. "Dividends paid
Oil Company (New Jersey)
per
share" include the market value of the Jersey
THE
stock on date of distribution.
is
a
STANDARD
910
SOUTH MICHIGAN
Please send me a copy
OIL COMPANY
fully integrated oil company.
of the Standard Oil
Company (Indiana)
refiner, trans¬
porter, and marketer in 15 Mid¬
western states. In these it has ex-
trade-mark rights to the
name. Two subsid¬
Standard Oil
iaries—The
American
Oil
Com¬
pany and Utah Oil Refining Com¬
pany—refine and market in 33
other states.
WHOLLY OWNED SUBSIDIARIES
PARENT COMPANY
A
UTAH
REFINING
THE
OIL
AMERICAN
and
petroleum products in 28
Southern, Southwestern,
petroleum
products and sells them in
Manufactures,
five Western states.
I
OIL
COMPANY
COMPANY
Eastern,
Manufactures
sells
transports,
and Western states.
owned): Pan American Petroleum Cor¬
Corporation • Service Pipe Line
Company • Indiana Oil Purchasing Company • Tuloma Gas Products
Company • Amoco Trading Corporation • Amoco Chemicals Corporation
Other
major subsidiaries (wholly
poration • Pan American International Oil
NAME.
STREET.
(JIT
established
elusive
AVtNUE, CHICAGO 8 0, ILLINOIS
1959 Annual Report.
j
ITS SUBSIDIARIES
COMPANY AND
Standard Oil Company (Indiana)
COMPANY'
CITY
.
2,268
Refinery input, barrels per day..
Crude running capacity, barrels
per day (year end)...... ......
STANDARD OIL
nn
..
1,347,590
10,872
2,193
11,164
(MANUFACTURING:
(INDIANA)
a
I: have
..
in 1889, operates as a
tn
Whn°nl?rged tax base.
mie
1,509,343
per day, net.... A
..... ..
Oil wells owned, net (year end)..
Gas wells owned, net (year end).
The parent company,
^iVes rise to income which
It P?Xef as long a3 the plant lasts.
in*£
Pro.ven statistically that,
mm?
diminishing tax reveali
'■ more liberal depreciation
thpm lnces wil1 actually increase
of
y ?nc°uraging the building
Anv iW 1"come-Producing plant,
morr. ?uS ln the initial
period is
bvth
P offset rather quickly
is
FINANCING. Net worth at the end of
$2,162,000,000, a gain from 1958's record
$1 931 per share,
the
-
$f(<K
gained momentum with a unique pipeline terMissouri, which permits drivers
trucks directly from the pipeline, thus eliminating storage expense and reducing manpower
requirements.
DIVIDENDS. Total
the
run, Every dollar spent for
share of the reseller market on a
$2,076,900,000. Book value per share
$60.44 in 1959 from $58.06 in 1958.
are
npur
285,474
thousand cubic feet
1959 stood at
improvement.
iSUry benefits
2,769,317,000
2,076,853,000
i*T>fV»y 58.06
$
v.
*
NET WORTH AND
*
Even
'60.44
307,686
.
minal at Trenton,
-
economy.
64,578,000
270,387,000
to load
a serious matter.
lAVu.r disappearing dollars
natV ,the steel industry and
national
1.687
costs
;
c,ax,5s1 are greater than they
wHj? be> dividends tend to be
aw
' and ^ere is less availole for
plant
research
focus of
sales record
our
The dollars invested in
;
3.29
53,197,000
MARKETING.
our
Reduced
nomic income is
improvements, our product and process
reorganized to provide a more effective
scientific talents.
Income Is Exaggerated and Taxes
Reporting
was
our
.
successors.
plants
potential of the Athabasca tar
brought closer to realization by
RESEARCH. In 1959 the
1954,
for
a
sands of Canada
the
the
is
g
*
significant advances
stills, and
liberalized depreciation permitted
this
Natural gas,
continuing program of improvement and modern¬
At Whiting, a 140,000-barrel-a-day crude
67,500-barrel-a-day unit replaced five obsolete
a 30,000-barrel-a-day fluid catalytic cracking
unit retired six old thermal cracking units, a small cat
cracker, and two vapor recovery units.
River
...........
1,882,441,000
117,775,000
,
$
3.90
$
54,498,000
$
1.931
$
85,099,000
$ 268,868,000
$2,846,502,000
$2,161,981,000
Crude oil and natural gas liquids,
barrels per day, net. ..... ... ..
running unit, one of the largest in the world, came on
stream replacing nine smaller obsolete stills. At Wood
.
.>
share
'PRODUCTION:
;
ensuing 20.
Even
tempered
by
somewhat
though
Lake
.
.
....
.
Book value per
ization.
addition
for five
years at the expense of a
much
more
serious
understate¬
ment
in the
Necessity have
correct
well in central
MANUFACTURING. The year saw
we
annual
average
The faster writeoffs un¬
only
a
light oil on test at a rate of
5,000 barrels daily. In addition exploration continues
in Iran, Libya, Algeria, Mozambique and Italy.
recording
expense with
der Certificates of
one-third interest in
...
Total assets.
our foreign prospects
development moved toward realization.
We drilled 91 wells in Argentina under a contract with
the state oil agency, developing an indicated producing
capacity of 24,000 barrels per day. In Venezuela we
a
.
.
ACTIVITIES. Some of
Maracaibo that flowed
$40,000
writeoff.
earnings.
earnings per average
outstanding share.
Dividends paid*,..............
Dividends paid per share*......
Earnings retained in the business
Capital expenditures
$1,980,779,000
$ 139,597,000
Net
for crude oil
hold
from
•
Net
Net worth..
1958
1959
Total income.
of
amount
and
show
depreciation
the $1 million
property
its
-
forcea by the
to recognize
real
and
-'
'
rule
adeauate
an
1
FIGURES
FINANCIAL:
STATE.
————
—
-health
address by Mr. Hunter before the "
General
Iron
1959 ANNUAL REPORT
THE STORY IN
re¬
the^danger
growth is clearly and gener¬
NORTH AMERICAN PRODUCTION. Our proved reserves
point in history. A large bank of favorable acreage is
under lease. A new record in natural gas production
was established while reserves were
climbing to a new
high total of 13.3 trillion cubic feet. Net domestic
production of crude oil and natural gas liquids showed
a 7.1
per cent increase over 1958 (contrasted with an
industry gain of 5.7 per cent) despite continued severe
proration in Texas and other states and the province
of Alberta. Net production averaged 305,839 barrels
a day despite restrictions to 123 allowable
producing
days in Texas last year. Natural gas production in¬
creased 12 per cent to 1.51 billion cubic feet a day.
of
ally apprehended.
disappearing without full
of crude oil and natural gas liquids in the United States
and Canada rose to 2,243 million barrels—the highest
embedded
are
instances
of
thousands
;
We
out
problem of this magnitude to
EARNINGS INCREASED 18.5% OVER PREVIOUS YEAR
ground may be, it is difficult to ;
explain how we can have $16'>,000 in expense one year and $10,000 the next, for the very same j
thing. There has been no physical
change, the machine is there, run¬
ning just as it did a year ago, but
the figures come up with this sur¬
prising difference. One is tempted
to say they can't
both be right
and yet hundreds
of companies
are saying they
are right, in ef¬
fect, by printing income state¬
will.
way
hopefully before
longer. There are too
able,- dedicated people in
,
reasons
it
much
happen,
and
Certificate is exactly
amount required ■ if
straight line depreciation of $40,- .
000 were corrected for obsoles-"
cence and inflation
in the illus¬
tration I used a moment ago.
.
Whatever the
too
to
our
same
the
debate
unpal¬
is
this
the
under
of
and
government, the accounting pro¬
fession, and industry, to allow a
in
truthful
Should
much
many
financial statements. Our dol¬
our
,
for
find
too
rule-making machinery and a
broader
approach, including re¬
consideration of existing rules, is
expected to result. Irrespective of
whether the accounting rules or
matter
There
cannot
surely
this muddle
its
loss.
evident
here
CPAs
development, and can
the Department recog¬
nizes the necessity of reviewing
the subject. Those of us who re¬
mean
the
a
an
truth.
stake
and
of
long enough, it would
on
affairs. The American Institute of
an
property.
opportunity of contributing
depreciation of the fu¬
information which will
certainly
lfil covered by a Certificate, ; Is Washington Awakening? v have an
influence on the official
he imaginary $1 million tool we
There are- signs of increasing attitude of the Treasury Depart¬
Inoke of might have been the recognition in
toward
Tax
Washington of our ment
depreciation
source of $800,000 in writeoffs by ,
penny-wise and pound-foolish tax allowances.
We
should
try
to
1059
Under .present rules, we
wouid have only $200,000 remain¬ depreciation rules. Hearings be¬ bring out the facts as we may be
fore
ing historical cost value to spread
Congressional : committees affected by the present tax rules.
over the next 20 years. The an¬
nual writeoff
thus goes from
$160 000 for five years down tor
STANDARD OIL COMPANY
$10 000 for the next 20 years. It
is not entirely coincidence that the
writeoff
of $160,000 permitted f
ordinary
are
public
also
There
important
only
we
opportunity.
may
the Treasury
selected list of
including
is not often
23
'
,
-
24
BANKS AND BANKERS
Branches
New
•
New Offices,
•
etc.
of
M.
Rathbone
J.
as
shareholders at
a
to be held
member of the Board of Directors
of
meeting
Guaranty
submitted
Trust
appropriate
Com¬
of
pany
will be
there
shareholders
the
to
the.
to
amendment
bank's Articles of Association pro-
New
reduction in the par
York
was
an n o
unced
value of the bank's stock from $20
today
by
Henry
C.
Alexa nder,
to; $10
per
share, and a corresponding increase in the number
of
Chairman
070
the
viding for
of
to
3,026,140.
.
Rath-
bone is Presi-
•
and
t
e n
Chief
Company,'
J.
Oil
Company
(New Jersey). He
Pa.,
an-
Robert.} A; , Maier,
Telegraph Company and of Prudential
Insurance
Company
of
Chairman
and
American
Petroleum
*
*
Institute.
Office
in
National
the Bahamas to 27.
•
He
the
Forbes
joined Mellon
tional became part of
Mellon NaCompany.
appointed Assistant Vice-
.
He
*
with
1929
Bank.
Bank in 1947 when the Forbes Na,
tional
•
*
.
named
Mr. Maier, started his banking
career
the
Perry
Canonsburg
The announcements
by Frank R. Denton,
made
hamas, June 7.
brings
Bank's
the
was
will open a branch in Nassau, Ba-
number of banks and branches in
Canonsburg
Chairman of the Bank.
Vice
office
of
Manager
were
*
Bank's
Office. Kenneth B. Cook, formerly
Chase Manhattan Bank, New York
Chase
Bank
was
-
m
r,
a.
Trust
and
President of Mellon Bank in 1958.
The
eighth
The
First
Argentine
National
City
New York
was
Lorn as
Zamora.
de
represents
branch
of
Bank
of
opened May 31 in
This
opening
banks 86th
the
The
opening
of
Savings
.
T
...
.
Carlos Juan Wulf
is
of
manager
»-J
«ei /im
election
York
Hollister
of
Trust
has
company. He
Trust
Company
Savings became^the
been
*
.
„
*
_
.
.
.
National Bank " of
Charlottesville,
Charlottesville,
Peoples
The
Va., increased its common capital
stock
355
$2,193,960
from
the
b
sale
of
$2,413,-
to
stock ef.
new
,
f ective
May
outstanding
.
Cox
of
New
announced
value
by
par
$5).
*
*
will
Middle
be
Vice-President
Illinois.
States
the
of
made
was
ant
an
Assist-
Vice-Pyesident of the Firet
National City Bank of New York.
*
James
B.
elected
*
'
'
Division.
He was, until recently
*
a
Michigan
"■
*
has
been
dividend
stock
a
mon capital stock
National
Bank,
the
com-
of the Moline.
111.,
Moline,
was
$1,000,May 18 (Number of
000 effective
James
A.
Farley
Bernstein
Jr.,
President.
formerly
Vice-President
of
the
first
was
Merchants
Columbia
National
city,
Mo.,
Reidy
a
♦
J.
elected
*
*
*
The
Kenney, 63, Vice-Presi-
dent
and manager of the Waterbury Trust office of the Connecticut National Bank,
*
By
the
common
died May 26.
*
Bank;of
West
West Orange, N. J., was
Orange,
increased
from $350,000 to $450,000 effective
(Number of shares out¬
standing—22,500 shares, par value
$20).
May 20,
*
The
Union
*
*
capital stock of The
common
National
Bank
and
Trust
Company at Mount Holly, Mount
Holly, N. J., was increased from
$200,000 to $400,000 by
a
stock div-
idend and from $400,000 to
$500,000 by the sale of new stock effective May 18, (Number of shares
outstanding —10,000
value
WL
The
stock.
r
Municipal Bond
Club Outing
shares,
„
J
Board
Pittsburgh
burgh
30,
*
of
*
*
Directors
National
Pa.,
at
its
of
Bank,
the
Pitts-
meeting
May 17, voted in favor of
a
on
to
the
approvTof
the
T.
Westchester Country Club,
at
and
Trust Company,
Ky.,
effective
as
of
*
*
*
*
*
''
,
„
.
Activities
planned
for the day
be
golf,
of
office
the
at
9
June
Weeden & Co., and may be obtained
William
'from
.
„
Weeden
Coa
&
are:
*
\
.
p
Chairman's Committee—Jerome
Glore
Breen
Forean
-
bodv
Co.
&
and
William
P
Mc-
Kay, Blue List Publishing Co.
riinaT1fip
Th
Trust
rnmmittPP
Tnhn
_
Morgan
senior
Ellis, formerly Manbank's
operations
in
Spain, Trinidad, will be-
come Manager of BNS banking
operations in the Bahamas.
Leslie
Hammond, Managing
of The Bank of Nova
Company (Bahamas)
«a
subsidiary, will de-
t0
differential
The
rates
Bill
Treasury
Bill
rates
level
of
decline
on
to
U.
Wall
prospects :as a result of
many
American investors
in
of
number
a
followed
not
appears
to become
advic-
Bills
ury
with
the
Forward
Ex¬
as
convenient as the holding
low American Treasury Bills,
.occasions
corresponding
appreciation of the Forward dolby
this
Treasury
remarkably
a
as
able. The holding of British Treas¬
change covered was not considered
S.
^
true
moment's
a
of
would
always be
British Bi]]s
possible to sell the
a
remained
the
all
time
that there would
so
under
have
1%
been
a
xk % in trans¬
over a
t
judg
by t
g
e pe s s
dollar
have
there
been
such
no
transfers on a sufficient scale
restore the Forward Exchange
If
the
parity.
to
v'
•
situation
to
had
notice
and
to
re-
to such operations and pre-;
fer
to
the
forego the extra yield for
sake
tions.
It
of
avoiding ^ complica¬
mainly for this reahigher .British Treasury
was
that
son
Bill
rates
U.
S.
to
restore
on
the
interest
its
unable
were
funds
to
attract
sufficient
a
Forward
parity
4
scale
dollar
tion to the dollar at
between
t
ondon
in
1951
various
+;
the
restoration
differ¬
-
the
times
of
the
Foreign Exchange market
and
the
Guaranty
there
for
was
beginning of the
1958. In theory
months an
profiTon
appreciable
transferring
funds from London to New York
Press
bf^ tta
more7emarkaWe^hat
of the
none
d
u
.
British
4v,n,,rtt,+
nntoinw
financial
n# vint+ii-in
commentators
u
mi,;.
thought of putting it forward. This
:c
roiYiorimKia
is tvnir>Qi of the remarkable Tonk¬
typical
lack
of
interest
in
Foreign
^
ZC
p
many
Chairman;
Lynch, for interest arbitrage. In practice
Pierce, Fenner & Smith; and Eu¬ this could not be done on a sufgene E. Kelly, Jr., Carl M. Loeb,
ficiently large scale to restore the
Egenes,
to
represented
as
by the Treasury Bill rate
ential.
been
"dollar scares" in
r
Company,
Berger
Exchange
>
„aT
London fina
cial press^ While the British busiw.
3u become much more
Merrill
Co.
Forward
Exchange to its interest
parity because
of
the
limits
many British
retical
economists
have
active
interest
technical
in
taken
an
For-
im-
Charles V.
Smith, Clark, Dodge & posed by the Bank of England on
years, the London financial
Co., Chairman; Joseph B. Wise, the amount of British banking pret£,s
hard,Iyt. eve4r comments on
J. A. Hogle & Co.; Paul L.
Sipp, funds that could be used for that ™a"eJ"s r? ?;ing ,to
Jr., Stern, Lauer & Co.; Chester nurnose
change. Although interest rates
W. Viale, L. F. Rothschild &
^
'
xti
in the London money market are
Co.;
On the other
hand, the use of commented
Wilson ~D. Lee", Rand~&"co7; and
upon
regularly, the
American funds for interest arbiexperts on the subject who write
William E. Simon, Weeden & Co.
fra?f }P^ London is subject to no about it appear to be unaware of
Snorts Committee
Robert A
Ftorwa"L^
,
,,
_
Rhoades & Co
'
Merrill
&
Smith
*
Bercener
Lvnrh
Inc
*'
plrpo
p'
John
Trust'Company:
Simon, Weeden & Co.',
Byram, Northern
William E.
and Thomas E. MacNiven, Kuhn,
,
limitations whatsoever.
banks
any ?i!04
f^nvLmean be
can
k
sterling
dervalued
w
\ 5°" ^ n^ye
an
^
on
was
end
on
casions.
Capital Flows Do Not Depend
answer
Credit Division of the Asso¬
interest
parities
on
the
has
of
Stock
reelected
Rates
to this
do
Newborg
puzzle is that
not
depend
differential
indication of
Credit Division Elects
ciation
The
an
oc¬
The
On Bill
this side to lead to
fascinating technical problems.
overvalued
several
on
explanation is
*
sterling
weeks
perplexing un-
f the Seneral lack of interest in such
purely
temporarily.
yet during the spring of 1960
_
Now American Service
five interest
pe-
relation to the dol-
entirely
Loeb & Co.
un-
except
Forward
for
in
the influence of Forward rates on
interest rates. That
S dervaluation of the Forward dol: Forward iar failed to arouse sufficient ac-
substantially
a
prolonged
over
overvalued
And
American
free to take full advan-
are
v.
lar
Daily Bond Crier — Frank P.
Gallagher, Jr., W. H. Morton &
Co.; Eugene E. Kelly, Jr., Carl
Fenner
Director
justified
be
the
London and New York.
Buyer,
chairman; James F. Reilly, Good-
Egenes
E.
of
Co
&
Committee
Arthur R. Guastella, Bond
management
of the
would
its interest
Marlin, Bache & Co. '
■
It is at-
about
chetti, J. A. Hogle & Co., Chair¬ other way round it would be quite Criticizes British Financial
For
man; Harry W. Faath, Jr., Marine understandable.
very
long
Trust
Company; and Donald periods Forward sterling remained
of its operations in the Bahamas.
of
which
the undervaluation of the Forward
^
Organization—Theogwick, White, Weld & Co.
broaden
ager
that
ferring American funds to London.
•;
,
Committee
v,uii,iin»v.v.
M. Loeb
William F.
than
basis
of the field day com¬
Members
mittee
*
*
The Bank of Nova Scotia, Toronto,
Canada,
announced
plans
to
the
street
doubts
to
to
the
Simon, profit of well
a
,
tributable
tennis, swimming,
verse
,the
sw
transaction
in
horseshoes
and
bridge.
Also a ar^ven though .frorn bme to order to recover the dollars To
time the differential with British
feature is the yearly publication
the majority of American invesof the
"Bond Crier" the
Club's Treasury Bill rates was something
torSi however. this would be rather
like 1/2% per annum and more,
humorous
publication.
Extra
compucated, They are not accuscopies will be available at $1 per the premium on Forward dollars tomed
will
w
surPlus of $112,500.
to special circumstances.
this
during March, April and May was
Rye, N. Y.
Prizes and Venture Committee—
of
oc-
casions during the spring was due
its
with
relation
iiu4u
Bank
decline of U. S.
interest pari- Treasury Bills became a favorite
sterling. In temporary employment for such
other words, even though forward funds. The idea was to
keep the
dollar has been at a premium, its funds available so as to be able
premium
was
for a long time to reinvest in Wall Street as soon
in
ties
between
Day
*
National
Moreover,; the
is
It
Atlantic.
the
compared
on
The Office of the Comptroller of Schiicting, Kidder, Peabody &
^}e C^re/lc>;<i!SUe^a °K?r xi°n Co.; Joseph' F. Meyers, Spencer
^al1p_tn°k »
Trask & Co » Richard G. Murphy,
fonntv
fa
The
Pr^iHen^
B* J' Van In^en & C°" ^ Alan
S
^
President is N weeden, Weeden & Co.; WilkUWiRi^^riFSfll1aw The^rfw liam M' Durkin» First National
h**
t capital of cJnn non anH
Bank of Chicag°»
William M.
has a ea^itS' nf $300,000 and a
two-
for-one split in the capital stock
subject
Bank
Port
par
$50).
Edward
State Bank under the title Farmers
of
;.
Treasury Bill rates on various
on
experts
Exchange
eign
of For-
brains
the
exercised
smaller
of the
Municipal Bond
Club of New
v„,t
h„
York will be h.lrt Friday, June 10
held Frir]av jv
Field
Annual
The
Rhoades &
*
Farmers
sale of new stock, the
capital stock of The First
National
Kansas
Princeton, Ky., with capital stock
of $100,000 was converted into a
Princeton,
*
Bank,
Director.
Bank of New York.
Frank
will con¬
company
386,667 shares of common
of
Executive
Vice-Presjdent shares outstanding-40,000 shares,
of the
Central Industrial Bank, par value $25).
—,v
Brooklyn,
N.
Y.,
according
to
Mr.
sist
Announcements
By
permanent character which
more
has
*
*
increased from $800,000 to
Bernstein
a
Arrangements—Alfred J. Bian-
Resident. Mr. Avenue National Bank, Chicago,
associated with the
Atlantic
Foreign Exchange puzzle of
other
.
the current during recent months the forward chose to keep part of their capital
capital¬ dollar was frequently undervalued jn a liquid form. Holding U. S.
J. Burke, Dean Witter & Co.
*
Shostran
Charles W.
of the
ization
_
shares,
482,671
There is, however, an-
financing, the outstanding
16,^ (Number of shares
x
George C. Textor,
Cox
located
are
he <company are located
°f
copy
Vice-President of The Marine
Midland
banking
Bellevue
the
at
r»ank
.
;
B.
■
.
as a
and
Bellevue
i
'
the Lomas de Zamora branch.
The
1942
j0jne(j Mellon Bank in 1947, when
this
-.o
/vtvinn
in
his
started
Cook,
Bellevue Office of Mellon Nation-
branch
marks First National City's 32nd
banking office in South America.
n.1,0.
a maniini
Other branches i„ Argentina are
in
located in Buenos Aires, Rosario,
Cordoba, and Mendoza.
'T
Mr.
career
over-
branch.
seas
o-
^nnmariv
upon completion of
formerly Man-
was
the
of
ager
the Manager.
of
nH
^on- ^
result of
ered all that it lost as a
that fiasco.
side
is also a DiTelephone and
America,
Boat Trailer is en-
pged in the
tnbution ^^ ?Ln,trv P?oduc-
assigned to the Marketing Division
Rathbone
partment. He
rector of American
The
Trust
Assistant Vice-President, has been
tive Officer of
1;
>.
.
and
Bank
for failing to take an interest in the perplexing undervaluation of the forward dollar.
>
(
financial press
.
materials and equipment and LONDON, England—The perplex- ment available for holders of
capital of ing depreciation of sterling that funds in New York. Interest rates
the company. Balance of the pro- followed the failure of the Sum- on such investments remained well
ceeds will be applied towards the mit Meeting has proved to be a above U. S. Treasury Bill rates on
expansion of the company s sales three-day-wonder, even though to occasions when the latter underthis day sterling has not recov-c went abnormal declines..
program.
Pacemaker
Pittsburgh,
that
nounced
Execu¬
Standard
National
Mellon
complicated transaction. He berates, however, the British
a
Net proceeds from the offering
will be used for the purchase of
*
*
is
to augment the working
"
:
'
*
think
a
as
.
sake of avoiding what they
prefer to forego extra yield for the
tors
raw
outstanding shares from 1,513,-
Board.
Mr.
d
a
offered
being
shares are
speculation.
an
The author notes that the American inves¬
ties in relation to sterling.
1, 1960 at $1.50 per share by Poarson,
Murphy
&
Co., Inc. The
special meeting
a
June 23.
on
this
At
Morgan
report from London deals with the puzzling parsistent undervaluation
forward dollar compared to its interest pari¬
in recent weeks of the
June
Glenolden, Pa. was made on
Election
following the Summit Meeting's collapse. This week's
tion of sterling
Inc.,
Co.,
Trailer
Boat
maker
column dealt with the inexplicable deprecia-
Last week Dr. Einzig's
offering of 200,000 shares
of the common stock of the Pace-
Public
—
——
"
By Paul Einzig
Of Pacemaker
Revised Capitalizations
•
Thursday, June 2, 1960
..
.
The Forward Dollar Puzzle
Pearson, Murphy
Offers Com. St'k
NEWS ABOUT
Consolidations
Financial Chronicle
The Commercial and
(2384)
be-
tween
Treasury Bill rates in London and New York. If U. S.
Treas-
&
Exchange
Joseph
Co.,
/sxu
as
J.
Price,
President.
A1,
„
?ther offlcers named
Firms
were
McGovern, Hayden,
Alber;
Stone &
Co., Vice-President; Francis Hano-
LOS
phy, Goodbody & Co., Treasurer;
name
^ames F- Connolly, Bache &
ANGELES, Calif.—The firm ury Bills decline
considerably it
of Keystone America, 3757, does not
.necessarily mean that
Wilshire Boulevard, has been there must be a heavy flow of
changed to American Service
and
funds to London.
There are many
other forms of short-term
invest-
Torno
Xr
rn
Co
m
Secretary, and Charles Johnson,
W. E. Hutton & Co., Assistant
Secretary.
-
Number 5956
191
Volume
.
,
The Commercial
.
and Financial Chronicle
the value of the
corporation's as¬
sets was
$156,410,651. This was up
$22.1 million, or
16%,* from the
start of the year and
$44.5 million,
MUTUAL FUNDS
ROBERT E. RICH
BY
(2385)
or
40%, from 12 months
ter
to
shareholders
that
notes
Reductions
since the end of the reporting pe¬
riod the asset value per share con¬
tinued to rise and reached
ago.
positions in Addressograph - Multigraph, Ameri¬
can Machine & Foundry,
Central
Hudson Gas & Electric, CutlerHammer, Eastman Kodak, Emer-~
son
Electric, International Tele¬
phone
& Telegraph,
Magnavox
all-
an
ing the past three months included
40,000 shares California Financial
year was accounted
Corp., 5,500 Donnelley (R. R.) &
for by about
$13,000,000' in net Sons Co., 5,397 Financial Federa¬
new
money and about $9,000,000 tion, Inc., 6,600 Government Em¬
in gain in the value
of the com¬ ployees Insurance
Co., 6,000 Petro31,
Fund Notes
5 himon,
decline Of $610
a
of a year
although not
in the course
million
shrinkage
This
assets of about
had net
omrvmies
open-end
the
report
latest
At
-
1959. Net asset value since the be¬
Recent Developments
on
analyze
of
one
the
few
Probably
people
who
pany's
*
have
however,
them,
Many of
taken
to
consolation — usually to
that while there had
setback, still it .was not
offering
effect
the
been
a
the slide in
nearly so severe as
averages.
Some¬
Standard & Poor's aver¬
the Dow-Jones
times the
used.
ages are
And
;
i;
i
;; ■
A
■'
■
y:.;
•
f
„;
■
that
three
for those fund managers
as
dex
of
500
common
stocks,
for
example, declined by some 5.5%
in the past six months."
./" / '?l
Wellington
did
it
by reducing
completely eliminating invest¬
or
ments in such
basic
autos, metals,
oil,
industries
steel, and
as
tire
6 rubber. This
money was shifted
into drugs, office
-equipment,
photography
and
growth stocks."
"miscellaneous
Puritan
Fund
30
assets
net
of
Texas
Instruments, Transitron,
international
and
Business
Polaroid,
Machines
others- have
been
staking out positions in "situations
mat are
greatly .undervalued in
the
current .market."
Thus,
Rit-
tenhouse Fund
explains its pur¬
chase of over
9,000
shares
of
dffi
Airlines,
srmn
of
leader in a
industry,
and
a
bled
u
8,900 shares
United
leaihT tr°ubled
leading
Biscuit,
"company ; in
industry. '
/
year
share
a
Fund
period
to
shows
rise
a
in
question;
Why
are
American
comnDs ?.ck® available on such
when
i
y. attractive bases
Srinc-mnUSt[lal Shares are Sti11
•
Fund
of
aipT
stock?
u-yuhlgh? The Delaware
I1 advises, has 5.5%
ln bank stocks- Bank
•
the $24.50
the fund's
Mirek
160
on
the
net
terially
in
net
value
of
resulted
which
shares
the
moderate
to
asset
the
of
ma¬
decline
fund's
from
man
assets
of
in
these
four
groups:
public
utilities, food, banks and finance,
and retail trade, which have gone
income
/
.
_
were
Oct.
on
$11,677,171
on
Apr. 30
$14.92
value
per
31,
Apr. 30,
share*
on
$14.81, compared with
Oct. 30, 1959 and $15.70
was
on
Apr. 30, 1959/
:
"
The increase in net assets in the
past six months was due primarily
to
continuing
ditional money
old
officers
the
Common¬
Among
reported.
portfolio
in
the past six months were:
Broadcasting
-
Ameri¬
Paramount.
Louisiana
Gas
Co.,
Corning Glass Works, Ford Motor
On
June
Fund,
sjt
,
the
from
the stocks eliminated
portfolio were: Boeing
Dictaohone Corp.,
Gerber
Products
Co., Reynolds
Metals Co. and Weyerhaeuser Co.
Airplane
Co.,
*
Hs
Financial Industrial
distribute over
in investment income
to
its
approximately
20,
Inc.
$1,100,000
will
The Putnam Growth Fund
reports
for the six months ended Apr.
that the asset value per
30,
share, ad¬
justed for the 50% stock distribu¬
tion made on Apr. 29, 1960, in¬
to
$11.29
a
$12.47, compared with
Oct. 31, 1959 and $11.19
ago. This represents an in¬
on
year
crease
of 10.5%
for the six-month
the capital gains
last
In
distribution paid
New
done
vLi of
,Stock Exchange,
htti
lightened
and withlistings from . the
contrihute to
•
have
an en-
fnvd^nVestment
community,
their
mutual funds, with
ihvestme 4noi\ ahility to analyze
But
cim
able
■
aTe?,™ Y.alues> it's
Would
hf1
greater lag
a
s h 0 w 1 n S an
ihey comtTl
t take
dividend
the
addition,
trustees'
2
8/10
cents
!j!
even
just knowing
even if
time to read
and
31
per
at the
share.
let¬
assets
Corp.,
the
of
*
Fund,
Inc.
rec¬
a
records
new
ing, and that the Fund's asset total
"record
gross
sales of
amounting to $43,500,-
shares
new
000
while
portfolio
values
mainly down in keeping
with the general market trend."
were
Investors
EST.1925
in a
A mutual fund investing
list of securities selected
for
of
possible long-term growth
capital and income.
Total net assets of the Chicagobased mutual fund on April 30
the
Fund's
last
fiscal
year,
31, 1959. Net asset value
the
riod
fiscal
0.6%
midyear
per
was
Oct.
share
$7.58,
for the six-month pe¬
ended
30,
the
Income Rind
A mutual fund investing
Fund
added
tron-Donner Corp.
ordinate
777
and
5%
current income.
A prospectus on each fund is available
Sys-
15,360
common
from your investment
to its
shares.
eliminated
into
dealer.
THE PARKER CORPORATION
$150,000
converted
debentures
common
stocks
in
list of securities selected for
d
April 30. *
During the quarter ended April
200 Berkeley Street, Boston, Mass.
22,-
Common
from
the
port¬
folio included Barry Controls "B,"
Clark
Controller,
of N.
Consolidated
Y., and Indiana
Principal
tion,
eral
eral
common
included
tions
FOR THE GROWTH
MINDED INVESTOR
General.
6,000
9,200
Pont,
du
Railway
addi¬
stock
Air
Reduc¬
35,000
Gen¬
8,600
Gen¬
Signal,
Telephone & Electronics, 32,-
500 General Tire &
Goodyear
Tire
International
20,000
Otis
&
11,700
Rubber, 28,000
prospectus
Rubber,
describes
Business
Elevator,
1,400
Machines,
11,800
Re¬
Engineering, and
Texaco.
'
fy*
AviationElectronics-Electrical
Of
Affiliated
of
growth
possibilities of selected com¬
mon
objectives of this Fund
are
possible
long-term
capital
and
income
growth for its shareholders.
Prospectus
upon
—
Chicago
& Co.
—
Atlanta
—
this 25
year-old mutual fund.
cfc
Address.
*
New York
aviation-
Name.
request
growth
Lord,
of the
Mail this advertisement,
Investment
*
stocks
electronics-electrical equip¬
ment industries is offered by
A Common Stock Investment Fund
National
group securities, inc.
An investment in the
Fund
rate of
Investors
stock mutual
fund
of the $358 million Broad
Street Group,
have topped $150
million for the first time. At the
latest calculation, it was reported,
Net
*
shareholders and shares outstand¬
payments to sharehold¬
May
INFORMATION
also established in number of.
every
record
of
are
MUTUAL FUND
yv
Equipment Shares
three months since the
fund was established in 1935. The
dividend is to be paid on shares
ers
reason-
i?n ihat bank stocks
the'?££feel hotter
continues the unbroken record
securities
*
liance Electric &
November.
course» have had a few dividends
individual^118 thls generation of 100,000 shareholders, according to
that the
tnvestors. It may be an announcement made by Presi¬
the hnni peop!e are ignorant,; but dent Charles F. Smith. This 98th
quarterly
dividend
make ?i iv ^lth their refusal to consecutive
dlscl?sure
such
told shareholders that
were
Edison Co.
He
period
#
in
portfolio
and
15.6%
for the
12month period, after adding back
$
Stevenson
the
Litton Industries convertible sub¬
1960."
-
Mr.
was
D Co.
creased
•
con¬
Co., Gimbel Bros., Inc. and Square
Among
Broadway, New York 5, N.Y.
high of $328.7 million at the
close of its .fiscal midyear. April 30.
Chester
D.
Tripp,
President,
down
Fund
,general trend, of
stock
prices in recent months,
constituted approximately 33% of
the company's assets as of Apr. 30,
the
to
counter
120
of
reported total net assets at
wealth
Arkansas
RESEARCH CORPORATION
ord
at
can
NATIONAL SECURITIES &
of
Establishid 1930
stocks and
Television-Electronics
the stocks added to the Common¬
Stock
the
investment of ad¬ .showed an increase of 6.7% over
by both new and resources reached at the close of
shareholders,
wealth
Prospectus and
descriptive literature, v
opinion of
management that in¬
fund's
reflected
assets
for Free
t
1959.
Net
it
H-.
~.y '
Commonwealth
$13,300,770
1959 and of
•
Inc.
.
diversified group of cor¬
likely to result in the fund
achieving its stated objective of
long-term capital growth.
and President Robert L.
"Shareholders will be interested
note," Mr. Bullock said, "that
holdings of Dividend Shares,
*
which
fund
investment in
more
Cody
told stockholders in the mid-year
report. This compared with net
the
sharp
decline in stock market
prices in the early weeks of the
calendar
year
and
again even
more recntly, Mr. Bullock said.
Fund
that
vestments
$14,455,884 on
April 30 Chairman S. Waldo Cole¬
.
groups
have tended
*
31,
months
an
porate stocks selected for
currentreturn. Send today
$24.60.
was
research.
the
,
of
a
share
per
mutual
a
provides
in
securities,
March
nine
securities
tific
in
or
is
the only
operation, the net asset
added
said
equity
fixed
t
*
assets
Stock
portfolio
and
j
.
Net
fund's 28th
securities and
defensive stocks
Vance
between
as
securities.
Substantial investments in Gov¬
ernment
fund's
holdings
31, 1959, total
were
$267,612,897 and
per share were $2,96.
assets
the
balance
'•
fiscal year. At Oct.
assets
in fixed in¬
Mr.
SERIES...
i
companies
which engage in extensive scien¬
marked change was made
no
either
President, told shareholders in a
report
covering
the
first
six
of the mutual
securities.
Inc.,
At
first
common
vertible
during the first three months in
amounting to $254,701,April 30, and net assets per
were
$2,80, Hugh Bullock,
months
year end, Boston
54% position in com¬
a
'
J.
selected
fiscal
stocks and 46%
that
net
net assets
share
the
STOCK
Stevenson, President,
attributed the showing of the fund
to
its
policy
of
investing
in
rising bond prices and also
holdings.
come
over
total
had
Inc.
per
value per share
on
Shares,
a
the
At
fund, said
the decline reflected the general
setback in prices of holdings.
Dividend
20,
'
'MATI0HAL
■
-
high of $26.01 as
gain of 6.2% over
share figure as of
new
a
May
1959.
Fund had
a
Resources
&
to
rose
of
of the
sponsor
friend'c
drawing
3,000
specializing
reported net asset value
of
Corp. of Ameriw*
Securities
the field of convertible
2,
from
$26,732,300,
Securities
Fund,
fund
close
with
compared
$8.12
Capital
investment
July
mon
same
Corp.,
to
J
and
31.
from certain of its equity
ago.
National
the
'Management Co. is
unripf0
that is in Quest of
is thp
?
situations. Its choice
thK niUn!^0ubled hanks.
It raises
this
Jan.
on
unsettlement in the stock market.
The fund, he
the equiva¬
lent
of
$12,47
a
share,
from
$11,048,500 and $11.19 a share.
a
Pelaware
earlier
$16.18
increase in bond holdings, Bos¬
was in an excellent
po¬
sition to weather the period of
as of April
$72,476,420, or
of
Puritan Growth
a
,
share
per
from
ton Fund
reports
$7.64
a
share,
$66,998,088 and
net
While
Wellington
has
been
latcmng onto the glamorous likes
Inc.,
Convertible
an
,
general level of stock prices. The
widely-used Standard & Poor In¬
value
$16.47
explained, profited
assets
can
asset
to
months
Samson
Total net assets climbed to $220,937,856 from $211,907,980. Henry
T. Vance,
President, said that be¬
cause
of-a sharp cutback in its
equity position late last year and
.
oil
actually show a gain in
net asset value,
the gloating is
*
*
understandable.. Thus, Wellington
Total net assets of the National
Equity Fund tells shareholders:
Securities Series of mutual funds
"Net asset value per. share has
at the end of the April 30 fiscal
increased from
$12.03/to $12.86
year amounted to $449,520,870, or
during the i semi-annual "period
$6.06 on each of the 74,198,865
ended April 30, 1960.
This is an
shares outstanding. This compares
increase
of
6.9%.,. exclusive of
with $465,604,584, or $6.79 on each
dividend income. This increase is
of the 68,621,515 shares outstand¬
especially significant since it was
year
previous. Henry J.
achieved during a period which ing a
Simonson
Jr., President of the
saw a significant
decline in the
who
net
increased
Corp. into Graham-Paige in April.
the
:
.
Service,
•.
The
Report
-
Gas
Ryder
.
investment Companies —- one
more than a year ago.
Fund managers, of course, have
closed-end fund do not reflect the
the painful duty of reporting to
merger of Madison Square Garden
stockholders that net asset value
share has declined.
lane
*
and Radio
up
$16,115,share, against
year-earlier figures of $11,571,223
and $1.91. The 1960 figures of this
per
*
System, Inc., 10,000 Scott
with $30,000 Boston Fund, in the first
three & Fetzer Co. and 12,000 Tampa
worth of Dividend Shares. He
got months of its fiscal year to
Electric Co.
Apr.
his stock by
entering a picture- 30, registered an increase in the
Eliminations included 6,900
puzzle contest in April, sponsored value of the
its shares and saw its shares Atlas Sewing Centers, Inc.,
by Wheaties. He won the grand total net assets reach
the highest 5,500 Copperweld Steel Co., and
prize. The trouble is that the rest quarter-end mark
in its 28-year 2,800 National Fire Insurance Co.
of us don't get our stocks for box
He
He
He
'
'
history.
Conn., who wound
with a
The Funds
vear ago becomes even more de¬
pressing since the 1960 figures are Graham-PaigeJ reports
based on 157 mutual-fund mem¬ March 31 net assets
were
bers of the National Association
933, equal to $2.08 a
Df
investment portfolio.
Norwalk,
comparison
unfavorable
are
not too much concerned about
the
facts is that fellow in
considering the behavior
„f the general stock market — is
not unsubstantial, considering that
in
the meantime
sales of new
chares have been
outrunning re¬
demptions (on average of $100
tops.
million a month in the last two
Souths reported). Moreover, the
.were
ginning of the
information.
in.
effected
stock
common
time high of $12.70 on May 9.
New additions to the fund dur¬
Assets per shares stood at
$14.12
compared with $13.41 at Dec.
were
25
Los Angeles
(
•
•...«.
City.
.State.
DISTRIBUTORS GROUP, INC.
80 Pine Street, New York
5, N. Y.
.
instead.
proportionately large sales of
built
The
Investment Merits of
time not
low prices
relative
to
earnings,
dividends
and book value, but they tended
to dilute the per share earnings,
thus obscuring the trend in net
stantial shock.
phi¬
summarized as
follows.
With a continuing high
tax rate and an inflationary econ¬
omy, common stocks are better
can
give these results. The
market has to be shown by actual
will
7
The current
be
stock
common
Utility Common Stocks
Continued from page
equity positions
up
only
not
years.
that
at
Thus
we
as¬
change in
the rate of return, there are no
reinvested earnings, capital struc¬
ture ratios are kept constant, and
all
sales of common stock
are
made at book value. The only fac¬
tor to show a variation is the cost
there is
that
no
capital, with the new cap¬
longer exists, still ital costing 5V2% as compared to a
it is possible to add to the com¬ 4% average cost on existing issues.
mon
stock's
earning
power
if The allowable rate of return is
prior securities can be sold at a 6%, the capitalization is 70% prior
lower cost than what utilities are capital, and 30%
common stock
allowed to earn on their overall surplus. It has outstanding 1,000,000 shares of common stock with
investment.
a book value of $30
a share.
Tailoring Capital Structures
/
The 6% return on the present
Whether or not utilities should $100,000,000
of capital produces
While this extraordinary
income.
period of opportunity
results extending over a
at
made
were
constant.
earnings
sume
of prior
no
limited
by
regulation
opportunities for produc¬
However,
investments than fixed income se¬ ing earnings growth.
curities. From a long range point although the rate of return is very
of view, properly selected com¬ important, it is not the only factor
For example,
mon
stocks are almost sure to affecting earnings.
show appreciation in the absence Company B, previously cited as
of a forced sale during a low mar¬ having a growth rate of 9% com¬
ket.
A key factor in proper se¬ pounded annually for the decade take this route to increased earn¬ operating
income of $6,000,000.
the: '4%
lection is the rate of growth in of the 1950s actually showed a ings depends on a number of fac¬ From this is deducted
decline on its return on invested tors. Can they reasonably expect
per share earnings and the faster
charges on its $70,000,000 of prior
the rate of growth, the higher will capital between 1950 and 1959. In to earn the full allowable rate of capital or $2,800,000. This leaves
its
operating
income return over a period of time? $3,200,000 for the common stock
be the price-earnings ratio.
Ob¬ 1950
amounted to 6.7% of its invested What is their
present capital struc¬ or $3.20 a share. The $50,000,000
viously this philosophy is pred¬
capital, whereas in 1959 it was ture, and will it permit the addi¬ of new capital is raised through
icated on confidence in the fu¬
only 5.9%.
Still its per share tion of prior securities without the sale of $35,000,000 of prior se¬
ture of the economy. I believe this
philosophy will continue to dom¬ earnings more than doubled from taking away all flexibility on fu¬ curities and $15,000,000 of common
1950 to 1959. This is cited to in¬ ture
inate the market until some shock
financing? How costly is the stock to preserve the 70-30 capital
dicate the importance of "below alternative of common stock fi¬
occurs
to undermine this confi¬
ratios. The common stock being
dence. Shock by its very
definition
unpredictable, so no one can
say how long the current philos¬
ophy will dominate the market.
However,
with
our
population
surge, an ever increasing stand¬
ard of living, and great techno¬
logical developments, it is dif¬
is
ficult to
see
the
economy
failing
the foreseeable
future.
Therefore, companies
should strive for growth in per
share earnings in order to make
to
expand
stocks
an
over
securities
their
If
vestors.
are
they
attractive
to
in¬
succeed, their
almost
sure
to sell
at
expanded price-earnings ratio.
How
growth
can
in
.
Thursday, June 2, I960
.
(2386)
.!
losophy
Chronicle
and Financial
The Commercial
26
utilities
earnings
obtain
when
a
their
Return
narrows
the line" financial factors.
nancing? What is the likely trend
return, in the cost of prior securities?
other "below the line" factors af¬ There are no general answers to
addition
In
to
per share
invested earnings,
fecting
rate
of
results are re¬
capital
struc¬
ture, cost of prior capital, and the
price obtained from sale of com¬
mon stock relative to book value.
This latter factor can have a
these
on
a
and
questions, for they depend
company's specific situation
requirements.
However,
I
„
like
would
ments
most the
case
make
to
a
few
com¬
capital structure. As in
on
of dividend
payout, there
important bearing on earnings as has been much discussion of stand¬
will be shown a little later.
ards for capital structures. I feel
Reinvested
an
important,
have here, too, there rs danger in gener¬
though rela¬ alization. Capital structures should
earnings
even
can
tively slow, effect on the growth
of earnings of a utility. Not only
do you have the earning power
on
tailored
be
which
not
the
to
means
that
sell
a
shares and the sale of prior
tal at
re¬
500,000
of
issuance
the
quires
capi¬
5^>% cost increases fixed
a
charges by $1,925,000. Under these
conditions, the per share earnings
work out as follows: The 6% re¬
turn
$150,000,000
the
on
of
in¬
capital would produce op¬
erating income of $9,000,000. De¬
ducting the new fixed charges of
vested
$4,725,000 leaves $4,725,000 avail¬
for the common stock. This
able
inherent
risks
on
they will
vary
of
Cer¬
1,500,000 shares gives earnings
a share—an 11% decline
from earnings prior to the expan¬
sion. If there were no escape from
very
these
does
soon
only by industry but by com¬
but the in¬ panies within the industry.
in equity permits a firm to tainly a company with a
proportionate amount of stable earnings experience
this added capital,
crease
$30
sold at the book value of
$2.85
results, management, would
be under pressure to hold
shares outstanding.
On this basis
earnings would work out to $3.43
share. The stock is now becom¬
ing somewhat more attractive, but
still leaves something to be de¬
a
sired.
Now
will
we
that
assume
stqck can be sold at
new
the
150%
a
premium ovei* book value, which
is very possible
in the present
market.
At a price of $75, only
146,667 shares would have to be
Pro forma earnings would
share as compared
sold.
then be $3.73 a
to
the $3.20
earned before the
expansion.
This illustrates how
important the premium over book
value
The premiums
be.
can
are
largely the result of a high priceearnings ratio, and this is why
the
utility and the commission
should be interested in the price-
earnings ratio
of the
stock.
-
Price-Earnings Ratios
/ With high price-earnings ratios
contributing to the premium at
sells
stock
which
its
over
book
value,./and this premium being
a strong stimulant to
earn¬
such
ings growth, the utility; should
continuously do.; whatever it can
a maximum ratio for its
stock. This will give lowest cost
to attain
stock
common
financing
which
helps to offset- higher cost prior;
security financing, and even in
with the latter it will
connection
have
beneficial effect.
a
been stressed
has
As
this
paper,
is
earnings
-
earlier in
growth in per share
the greatest single
high price-earnings
contributor to
And,
ratios.
rate
of
is
stock
was
as
growth
for
record, particularly
of a
utility stock.
strong reason why
stated,
the
particular
a
determined
by its past
in the case
This is one
I feel that
by and large
securities^ If the ^cost of not require as large an equity po¬ capital expenditures to a bare stock dividends are
Statistical services,
regulation, and why should they these prior securities is less than sition as a company with volatile minimum, and service would then undesirable.
be interested in a high price-earn¬ the allowable return, the company or uncertain earnings. In addition, deteriorate. If this continued over security analysts, and most stock¬
structures
should
vary an extended period of time, utili¬
holders do not adjust the earnings
ings ratio for their stock, are nat¬ can obtain additional earnings for capital
the common stock. The resulting from year to year depending upon ties would have financial prob¬ record for stock dividends unless
ural questions to be asked at this
markets for various classes of se¬ lems similar to those of
compounding of earnings can be
point.
tjie rail¬ they are substantial. If a comany
quite attractive depending on the curities. During periods of low in¬ roads.
has a growth rate of 6%, which
Growth in Per Share Earnings
allowable return and the cost of terest rates and preferred stock
is
slightly - above average, and
prior money.
Offsetting Factors
Actually, if many costs, they should rely relatively
pays
an
annual 3% stock divi¬
Reputation of earnings growth
stockholders did not need the in¬ heavily on this type of financing
is
However, there are some other dend, the historical growth record
neither
easily
earned
nor
come, it would be best from their and not be influenced to any im¬
offsetting factors.
First of all, will show a 3% trend which is
quickly lost in the stock market.
long term point of view to rein¬ portant degree by the resulting there would be some retained somewhat below average. Because
Such reputation is based either
vest all earnings.
I can think of effect on their, capital ratios. Con¬
the
on a long-term earnings record or
earnings. Assuming that the 50% of
apparent
difference
in
no
other industry where a com¬
versely, when interest rates are expansion was spread over a five growth rates, the price-earn in <?s
on factors which lead the investor
pounding of earnings could be so high, common stocks are likely to
to believe that there will be fu¬
year
period, and the company ratio will be adversely affected.
effective with the same amount of be in favor. Under such conditions
ture earnings growth. As exam¬
paid out 75% of earnings, retained The initial market response to a
certainty over a period of years. they should rely more heavily
earnings would amount to $4,000,- stock dividend may be favorable,
ples, reason indicated that utilities
However, since many stockholders than normally on common stock
even
though
they
had
strong do
000, making it necessary to raise but over the long run the better
require income on their in¬ financing, especially if their stock
only $11,000,000 instead of $15,- -earnings
growth in terms of phyiscal units
record
that
will
be
vestments,
dividends: must
be is selling at a good premium over
could not have strong growth in
000,000 of new
common
stock shown where there are no stock
paid. There has been much dis¬ its book value.
However, offerings money. The sale of this amount dividends, will have a more fa¬
earnings because earnings were
cussion in financial and academic
of common stock should not be so at the book value of
limited by regulation. It took ac¬
$30 a share vorable effect on the market price
circles about dividend payout, and
large or so frequently made that would require the issuance of of the stock. '
tual
'
v
earnings results for many it has often been said that a
\,
pay¬
per share earnings are completely
years to convince the market that out of about
366,667 shares, so that there would
75% is proper for
diluted. The ideal time to offer be
there were utilities such as Flor¬
Frowns on Stock Dividends and
1,366,667 shares- outstanding
utilities. My own feeling is that
common
stock is during a year after the
ida Power & Light, Texas Util¬
expansion.
The net in¬
Rights
such a generalization is meaning¬
when they foresee a large enough come available for common
on
ities, Houston Lighting & Power, less. The payout should
vary by
It is true that there are many
gain in earnings to more than off¬ this number of shares would give
Florida Power, Atlantic City Elec¬
rate
of
return
is
restricted
by
tric, and Virginia Electric & Pow¬
which had an earnings growth
comparable to that of the faster
er,
growing industrials. In determin¬
ing the growth rate, the investor
usually determines the rate at
which earnings grew over the past
five or 10 years, and then reasons
whether
prior
companies
to
the
should
be
geared
involved
or
stock¬
and
risk
holders' requirements if
be determined.
I would
they
can
consider
H
will
so
show
that
per
share results
ture
a
standards
for
an
entire
in¬
dustry would add unnecessarily to
the cost of financing for many
companies.
The
earnings of $3.13 a share, which
would still be slightly less than
earned before the
der
these
ers
still
expansion. Un¬
conditions,
stockhold¬
happy.
Instead of the growth that they
are seeking, they would see some
deterioration in spite of having
reinvested
$4,000,000
of
their
earnings. With the stock out of
favor, new shares would be diffi¬
would
not
to
sell
except at sacrifice
prices, and the tendency would be
to curtail capital expenditures.
There
would
remain
factors
would
be
curi-ent market conditions. If prior
can be sold
at a lower
which
only two
give the com¬
appeal. One
commissions
securities
cost than
isting
a
the average cost of ex¬
outstanding prior securities,
company
on
the
type
will
common
of
the cost
earnings
stock through this
increase
financing. Conversely, if
of new prior capital ex¬
that could
stock
mon
a
investor
higher rate of return
are
reluctant
to
give, and the other would be
selling the new common stock at
a
premium
latter
book value.
over
factor
is
This
not
fully appre¬
by many investors, utility
managers, or regulators. To show
its effectv we will carry our cal¬
ciated
investors
who
additional
stock
receive the
like to
shares
that
go with a
They feel that
receiving something for
and that the proceeds
dividend.
they are
nothing
from
the
sale
of
the
new
shares
the
equivalent of an extra
dividend.
Actually it does not
work out this way. Although they
have received additional pieces of
paper that are impressively en¬
graved, their proportionate inter¬
est
in
the company is actually
unchanged.
If
they sell
these
shares, their interest is actually
are
reduced.
results
as
this
tial
to
sale reallv
does
way
"extra
an
extra
capital,
produce
dividend."
in
it
"income"
is
essen¬
the
stockholder, the very
results can be obtained by
same
the
ia
reduction
a
no
income
If
Thus, such
in
in
and
sale
of
a
proportionate num¬
ber of shares of his present
ings.
The
issuance
of
hold¬
shares
First, we will assume that in
raising the $11,000,000 of new
through a stock dividend is ex¬
pensive, creates
considerable
bookkeeping for all concerned,
actually
gives
the
stockholder
nothing, and obscures the growth
in earnings with a resulting ad¬
common
verse
ceeds the average cost of outstand¬
culations
ing issues, per share earnings will
diluted, everything else being
utility
be
be
cult
rising cost pf prior capital
is almost sure to have a negative
effect on the growth record under
equal.
To
illustrate
how
this
This is the present record of growth which
would works, we will take a hypothetical
many
electronic have added to the market
ap¬ utility with $100,000,000 of invested
companies whose stocks sell at praisal
of
its
earning power. capital which requires $50,000,000
very
high price-earnings ratios Capital added at this low
cost of new capital for expansion
pur¬
even
though they have a very contributed
enormously to future poses. In order to show the effect
limited earnings record.
In the earning power. But
many utili¬ of the cost of prior
case of utilities
capital, we will
though, reasoning ties missed this
opportunity and keep all other factors affecting
future growth.
situation
for
,
ing shares
gain. This type of
flexibility, which can mean so
75% pretty much of a maximum
much to the earnings record and,
unless there was no likelihood of
therefore, the cost of financing,
growth in earnings.
If earnings
becomes valueless if management
do
show
a
good growth trend,
or
regulatory
bodies
prescribe
some
small annual increment in
ratios
without
a
dividends is an effective way of capitalization
proving to the market that you great deal of give in them. A fed¬
eral agency setting capital struc¬
do have growth.
With a five to
or not there is likely to
change in this rate. This
is why a reputation of growth is
not
easily earned but requires ten year record of a constant
continuing efforts over a long pe¬ growth in
dividends, even though
riod of years. And once acquired, it is
not substantial, investors will
the reputation is not quickly lost
calculate
yields
on
future
ex¬
as is indicated by Houston Lightpectations
depending
on
their
: ing & Power's record.
From 1950 state of confidence rather than on
through 1956 its earnings expand- the basis of current dividends.
: ed at the compound rate of about Once
again, it is anticipation that
"16%
annually,
but
for
1957 really counts in the market value
through 1959, the growth rate was of a stock.
a very mediocre 2%. Still Hous¬
Under
certain
market
condi¬
ton has the reputation of being a
tions, changes in capital structure
growth company and its stock
can have an
important effect on
sells at a healthy 25 times earn¬
the trend of earnings. Back in the
ings.
early 1950s when bonds could be
The market place will also put sold
on a 3%
basis and preferred
a growth reputation on stocks that
stocks could be sold on
a
4%
have very little earnings record if
basis, the industry had a most
reasoning
indicates
prospective unusual opportunity to build a
be any
set the added number of outstand¬
able
a
to
the
hypothetical
step further.
on
money
sell the
the company is
stock at a 50%
premium over book value, or at
$45 a share. This would require
the issuance of only 244,444
shares,
that at the end of the expan¬
sion. there
would
be
1,244,444
effect
ratio.
stock
run.
so
on
price-earnings
dividends
over
the
long
,
The effect of
in
the
By and large, stockholders
hurt rather than benefited by
are
the
sale
of
preemptive rights
common
stocks
is
Number 5956 :
191
Volume
stock divU
stockhold¬
similar to that of
Although many
ite
lds.
,
er not understanding the longterm implications are in favor of
iahts, actually they are hurt by
™
offering. The sale of stock
h an
rights offering, by its
very
nature, requires that the
Snck be sold well below the mar¬
ket criee in order to give a value
to the rights.
When this is done,
So premium over book value
.ihich the company receives and
Sch is so important to low cost
financing,
is
greatly reduced.
Moreover, more shares
must be
'"id to produce the same number
of dollars than would have to be
"id if the stock- were priced at
its full market
value. This un¬
through a
if
dilution,
necessary
repeated
down the rate
With the
slower growth, the price-earnings
ratio is likely to suffer so that
even
the stockholder .who sub¬
scribes does not realize the full
potential of a better price-earn¬
ings ratio.
But experience indi¬
cates that most stockholders either
slow
can
often,
growth in earnings.
of
Commercial and Financial Chronicle
The
.
not only gives an investor
ture would
eventually contribute
confidence, but it often clears up to a low
price-earnings ratio, for
preconceived, erroneous opinions. as the
price-earnings ratio rose,
When Atlantic City Electric first,
the cost of common stock
money
became independent of its hold¬
thus calculated would decline and
ing company, it was amazing how
many sophisticated investors
thought that it was nothing but a
boardwalk
nancial
community educated, but
the effort is
usually worthwhile
.
in
its
The market
based on the
of the stock which
is normally under pressure dur¬
ing the rights period. As a result,
most stockholders sell their rights
in a poor market and are happy
to receive
a
few extra dollars
because they do not understand
the longer-term implications. Ac¬
tually, they would be better off
if the company sold stock at the
maximum
premium
over
book
market price
and
value
the
avoided
unneces¬
dilution that is implicit in a
rights offering. The added earn¬
ings and the probable improve¬
ment in the price-earnings ratio
resulting from the better growth
would far outweigh the few extra
sary
dollars obtained from the sale
rights.
..
of
Importance of Management
conditions, there are other
Management is a very
important
structure.
often
indicates
management is
investor
The
factor.
has
been
to
me
more
that
the
interested in
the prestige of its
office than it is in obtaining max¬
imum .earnings for its common
stockholders.
make
The conditions that
interested
me
high
in
utility
a
stock equity
are
(1) the stock is selling
tremendous premium over
a
at
a
its
book
common
value,
(2)
there are
policy
has changed and that the equity
ratio will be allowed to decline,
thus adding earnings to the com¬
mon
stock
if the' cost of prior
money is less than the return on
indications
or
that
financial
investment.
Cast of Capital
There
is
final
one
subject
which I would like to offer
a
on
few
The Buckeye Corp. pursuant to a
prospectus dated May 20, offered
to exchange 296,236 shares of its
if
common
stock
of
capital
earnings growth
eliminate it, and without
not
It would sell at
a much lower pre¬
mium over book value
and, as was
shown earlier, either this
higher rate of return is
quired
of
to
prior
offset
the
capital.
of
the
owners
of the enterprise.
It is
amazing how many managements
give the impression that their
is
maintaining them¬
Still others give
that
impression
they
are
working for the consumers or the
employees.
Indications
of
this
are often portrayed in annual re¬
office.
higher
This
shares
re¬
of capital theory in deter¬
mining the allowable rate of re¬
turn
in
regulatory proceedings.
This
poses
the greatest danger
which the utility industry faces
from
the
both
and the
consumers
stockholder's point of view. If not
carefully applied, it could
chaotic for the entire pri¬
vately
financed
industry.
The
at
common
or
value is essential to
curate
more
of
measure
In
company.
my
to
in which the cost of
calculated
of current earnings
theory
stock capital is
basis
the
would definitely result in a higher
cost of overall
capital. Utility se¬
curities and particularly the com¬
stock
would
and
a
become
stock
of
of
him
to
tion
fractional
a
stock
common
will have
of the
the
purchase
option either
one
King
mon
of
stock
the
satisfactory
cerned
would
spread
above
book
Company
way
a
much
for all
con¬
ranging
be
to
allow
some
from 1% to 2%
above the cost of prior capital. To
stay financially healthy the util¬
ity industry must be able to raise
this type of money profitably and
show a growth in per share earn¬
ings on the common stock.
*An
New
con,
address by Mr. Page before the
Jersey Utilities Association, AbseN. J., May 12, 1960.
written
to
are:
New
election
notice
of
such
extension
respecting
tax-free
reorganiza¬
tions, it is necessary that Stock¬
holders of King Productions who
buy or sell fractional shares of
common stock of the corporation
be
charged for brokerage and
transfer tax expenses attributable
to such purchasers or sales.
the
notice
thereof
to
stockholders
of
King Productions.
Stockholders of King Productions
may accept the Exchange Offer by
mailing or delivering to the Ex¬
change Agent, at its address set
forth above, prior to the Expira¬
tion Date, their certificates repre¬
senting full shares of capital stock
of King Productions accompanied
Named Directors
the Board
Trust
Exchange Agent who will
thereupon mail or publish written
The
Exchange Offer is con¬
tingent upon the deposit with the
Exchange Agent, on or before the
Expiration Date, of certificates
(properly endorsed, with signa¬
tures
guaranteed,
and
accom*?
panied
by
properly
executed
Exchange Instructions) for shares
of capital stock of King Produc¬
tions constituting a majority of
the
then
outstanding
shares
properly executed Exchange
Instructions, in the form furnished
by the corporation. Such certifi¬
by
cates should be endorsed in blank
Century Chemical Corporation, 60
East 42nd Street, New York City,
the
of
Midland
of
two
Appointed to
>
with
signatures guaranteed by a
or
trust company or by a
member organization of the New
York Stock Exchange or of the
American Stock Exchange Securi¬
bank
thereof.
,
J
«*
'
'
\
v
/
'
1
.
•*'
'
:•
■
ports,
and
conversations,
speeches,
most importantly in the earn¬
unat¬
difficulty in obtaining suf¬
capital to meet its increas¬
ing demands, not to mention new
capital required for improvement
have
THE PUBLIC UTILITY ISSUE OF
in service.
ings
record
the
and
policy pursued.
financial
Another
impor¬
tant factor is the
political risk.
Is the
utility vulnerable to subsi¬
dized
government
What
about
mate?
competition?
regulatory cli¬
the
Many commissions
either
through attrition of the rate base,
regulatory lag, unrealistic rates
of
return, or the usurping of
managerial prerogatives
cial
matters, have
sible for
a
company
record of
growth.
ties
on
finan¬
made it impos¬
to compile a
Stocks of utili¬
operating under this type of
regulation usually sell at relaively
low
price-earnings ratios.
are
which
a
we
refuse
because
nat
to
of
number
a
to
of
states
invest
regulatory
in
funds
climate
next
makes earnings growth
impossible.
There
are
other
factors
which
e Rearing on the price-earnbut are not as
important
growth, management, and reg-
ina
gs ratio
s
h
a ad
1?n-
D°es the stock have
market?
a
This is important
mnd ge investors
who
theory is dif¬
apply, and there is great
The cost of capital
risk
that
will
the rate
here
there is
Will Be Published June
for some
room
16,1960
argument. However, when it comes
to calculating the cost
of common
I do not see how it
be done with any degree of
stock
can
money,
accuracy.
★ The 1960 edition of
As has been pointed out
sent the official
throughout this paper, the market
price of stock is determined not
its earnings will be some
into
and
but by
believes
time in
our
ANNUAL PUBLIC UTILITY ISSUE will pre¬
opinions and forecasts of the nation's public utility leaders
non-industry authorities on the outlook for this vital segment
earnings
present
what the investing public
the
far
How
future.
ture
nation's economy.
★ Get your
they are willing to look de¬
pends upon their degree of confi¬
dence. Consequently to accurately
measure the cost of common stock
money,
what
would have to know
being
and how far into the
one
perspective
future
these earnings were
earnings which is definitely inac¬
curate. Thus calculated, a stock
considered
would
capital
actually the stock
to
cost of 5%, but
have
this year's prospects and the future trends of
★ Do not miss the
opportunity to advertise
your
Firm, Corporation or
v
Bank
in
this
important issue. Please reserve your space requirements
being
projected. With these two un¬
knowns being subject to dispute,
the
tendency is to use current
selling at 20 times earnings
on
public utility industry.
level of earnings was
estimated
be
the
a
before
closing date of June 13th.
Regular advertising rates will prevail
for space
in this important issue.
tuWan! to buy larSe quantities
bn
'
iu
kut
THE COMMERCIAL & FINANCIAL CHRONICLE
i
atl«
of
its
stock.
Full
informa¬
of the
the fu¬
its
by
not only
is selling at 20 times earnings only
because investors looking at past
also want to
history believe it will have higher
thp S
i t.lley can dispose of
A
nl
circumstances change. earnings in the future. It is very
unlikely that a stock with a record
ihvoo+npany's efforts in keeping of no
growth would sell at this
munH°r- ?nd tlle frttancial comhigh a ratio, but more likely would
tinnc f m*or,med about its operasell at about 10 times earnings.
bear
an°ther factor with some
The use of current earnings in
ratio Jf •?n xthe
Price-earnings
of
THE CHRONICLE
be incor¬
rectly calculated. The cost of prior
capital can be determined within
a
slight degree of accuracy, but
even
this
calculation
by
its
very
na¬
;■
'
ties Clearing Corporation. Addi¬
C. F. Moore Opens
Blodgett, Vice-Presi¬
tional
copies
of
the Exchange
dent, Stone and Webster Securi¬
LAS VEGAS, Nev. — Clarence F.
ties Corporation, New York City, Instructions may be obtained from
Moore is conducting a securities
and Arnold Dom, partner in the the Exchange Agent.
business from offices at 1234 Las
No fraction of a share of the
law firm of Cahill, Gordon, Reindel and Ohl, New York City.
corporation's common stock will Vegas Boulevard, South.
Emmons
ficient
ficult to
com¬
corporation.
exercise his
the
.
to
entitle him to
additional full share of
would
company
or
additional fractional
an
sufficient to
share
three
share
corpora¬
to sell such fractional share
Such stockholder may
Marine
The
the cost to the
additional directors.
common
capital
each
entitle
a
opinion
announces
on
of
for
issued pursuant to
the Ex¬
change Offer. Any stockholder of
King Productions who deposits
with the Exchange Agent a num¬
ber of shares of capital stock of
King Productions which would
option by so indicating in the
Instructions.
In
the
York,
120 Exchange
financially Broadway, New York 5, New York absence of such indication, such
healthy industry with a growing has been appointed by the corpo¬ stockholder will be deemed to
demand. To sell stock below book
authorized
the
ration as Agent to accept delivery have
Exchange
value would have an
opposite di¬ of certificates representing shares Agent to sell any fractional share
luting effect on existing stock¬ of capital stock of King Produc¬ to which he might otherwise be
holders who would become reluc¬
The
tions which are surrendered by entitled.
Exchange
Agent
tant to authorize the sale of new stockholders of
King Productions may, as agent for stockholders of
shares. The railroad industry sel¬
in
acceptance of the Exchange King Productions, offset buy and
dom raises new capital
through Offer. The fees and expenses of sell orders or may execute such
the sale of common stock.
the Exchange Agent will be paid orders through the facilities of the
If cost of capital must be used
American
Stock
by the corporation.
Exchange,
in
in rate proceedings, the cost of the
The Exchange Offer will expire either case at currently prevailing
common stock
at
three o'clock P. M.j Eastern market prices for shares of com¬
component should
be based on some estimate of fu¬ Daylight Saving
Time, on June 30, mon stock of the corporation on
ture earnings and then the overall 1960. The corporation may, how¬ such Exchange. In order to con¬
results should be used merely as a ever, extend the Exchange Offer form
with
the requirements of
Internal
Revenue
Service
rough guide rather than an ac¬ one or more times by giving the
sell
very
ital
stock
stock
Productions.
cost
ability
the
common
premium
a
for
888,708 shares
of
King
Bros. Productions, Inc. at the rate
of one share of the corporation's
growth the stock would lose favor.
comments. This has to do with the
cost
tractive
interest
the
concern
latter
maintaining
working
selves in
opinion the im¬
the
of
greatly exaggerated by many fi¬
nancial people in the past.
An
overly
strong
capital structure
mon
first
In my
portance
In Exch. Offer
a lower allowable rate
of
return. This lower rate of return
would minimize
or
ritory and the population growth
are
given weight in the market
price of its stock, as is its capital
wants to feel that the officers are
in
fi¬
strict adherence to the cost of cap¬
the largest single factor in priceearnings
ratios
under
present
factors.
lower
be
Buckeye Corp.
result in
prove
-
Although growth in earnings is
market
to
The economy of the firm's ter¬
ratio
rights in the market.
price of the rights is
contribution
nancing costs.
to; increase their invest¬
the company, so sell their
willing
company.
It takes a
effort to keep the fi¬
continuous
with
ment in
{,£<>01)
tion
unable financially or are un¬
are
I
.
25 PARK PLACE, NEW YORK 7, N. Y.
RECTOR 2-9570
28
of debt increase in
AS WE SEE IT
Continued from page 1
»
*
.
(
"stand." In
can
Financial Chronicle
The Commercial and
(2388)
point of fact, it would
V
*
:
*
*
■
"
1 •'
1
that the rank
the way that the
a
long while past.
appear
and file have been rather indifferent to
total of our debt has been on the rise for
It is little short of remarkable that the net debt of the
tional government as late as the end of 1959 was
be
to
more
we
are
escape
than any
[
still
.
>
—
not
•
na¬
the
upward
of
$243 billion,
the
war
or some
to
came
an
$13 billion
more
end and certain
than it
~
postwar adjustments
to
steps
be expected the chief increase in debt 7;
as was to
7,.-■/• /
of
compete with
sensa- }
By the end of the Truman regime *
it had reached the
staggering total of about $307 billion.
By the end of 1958 it was but a little short of $500 billion, }}
and now the
Department of Commerce says it reached
$547.5 billion by the end of last year.
tconm^es its
Too Much Debt? V
We
mittee can't do the job alone.
;
,
certainly need not
we
the
can
it would be
good thing if
did—whether or not we have reached a
point where,
general economic good is endangered. How much debt'be assimilated without
injury depends, naturally,-
upon
number
a
obtain
funds
of
for
Debt
which
purposes
pected to produce
ultimately to
factors.
at
revenue
which
a
is
incurred
how
I
stress
enough
enougl
just
reasonably be
all timeV'fo service
.
Let
to
point.
hold
It
eign producer cannot offer:
isn't
\n0 jn
in
someone
sible
ture
it and}
inallv
ically,
who
charged
charged.,
are
with
with
.sent
man
Sstha"
for-
press?
sure
Let's use the
-
-me
America
have
we
a
bigger,
mobiles economy
than the
ever known. But as the
culture
of our, society
more
world has
develops,
T:.
going to do
are
and
more
more
steel. Ours isn't-the problem
sume
^Chtoa'or
?/ ^ China-or
an-India-to build
anJndia—to build
1-ailroads—to build - the basic
the
tearing in the
.
too
■,
/;/"/'//,
they?
/
-In
serv-
tearhl^'in
me
ar^
the
of the facts.
custom-
our
0f steel.
are
n
right out to solve a
heat treating} or of
in
rfnppif- Csheeto
specif-
the
Can
throughout
bpards
age
/0r
uD^DusseldorTand ?have
problem
There must be respon-
individuals
this line?
calk
ers
a
ex¬
/'
nation, " designersand. - engineers
are creating
an even greater la¬
begin'by selling, much
us
harder those .things that the
'
Do
being informed about competitive
to
materials.
can
this
things
steel... •::./'/
^rawing^
•
•
First, member companies must "ice, quality, availability.
}.///.
organize—sometimes reorganize—
First,
metallurgical
service,
to do this job.
Please remember what
foreign producer does any-
can,-
however, ask ourselves—and
£
niade
' cent itotke of us live in' a vast,
While
Some
gajaaemop today, on
faniilla(. world of steel,
cent|tnke. .approach
abroadmay
V.
•
is now produced in such
roundcd;and servcd fr0lh
horning
tijb night :with countless
...
;
V- /
Companies Must
What
■
argue among ourselves about}
how much of this sort of debt
we can "stand." We
they do?
can
time
a
yea™
*-ome..
...
...
•
in
the final analysis, it is posi-'-'(.Having emphasized how tough a
tive action by individual member problem
foreign competition is,
companies
fighting
competitive let me say just, as-forcefu y that
materials
that
will
count most. I think we are equal to it,
Just what
.
bdriously made,only-a few pounds
day wage rates
|teel.: It will be of
great help to the member companies of the Institute. But the Com-
tion of debt statistics.
Steel
}//
?he^nce precfom Zfa! £
.
..
government. Since 1945 it has, however, been the
of
7
>
-
been
^
the
like to dorfwlth a few
productsr We will be under pres- remarks directed toward the overgure from more and more foreign
all problem of. gelling- more steel
of insuring that ours-is an indusv
4.1,
trv 'that grows and
the Use •'Committee hasNo-one-with,sense thinks that, try_ tnat mm anp Contributes its
has occurred in the
war
,-,V
-I should
sponsorship of ••Steelmark^ meeting
an^bPaUng ore.gn comobligations of private in- }: our trade symbol/,which identi- petition is. an easy
dividua Is and businesses. This
fies for consumers products made The foieign pioduct is almost al
type of debt, as is well
of modern, high quality, reliable ways priced less tharf the, Amenknown,: declined considerably after 1929, and, naturally ;
rsteeK^.,can product even though an qpdid not recover
during the war years. At the end of the:
So all of us are most fortunate P01 tunistic Price put on
i
y
war, it amounted to only $140 billion or thereabout on aj; to have this
Committee whose for- occasionaUy be higher than the
net basis,
mation is due to materials which
very much smaller than the debt of the national
since the
in
freedom
-V' --Selling. More
".i;
bad dream and it will make it-
any
will/win
where
place
choice prevails.;
a
^
it
our
and
can
market
•;,
have
other
know you wouldn't.
industry's abilitv
products and services
I
of
provide
which
-.
But
and
I am sure
persistently
mounting national debt seems to have become a national
policy,;or at all events nothing effective has been done to ;
prevent it from following an upward course. And let us ;}
never
forget that many obligations of one sort or another ~ Continued
from
do not figure at all in the
published total of national debt.; portumty for each
,c°™Paiiy
As a matter of fact, that
"present value'* of future Old
participatem
acuities 9^ v..;
type lust aescuoea.
Age and Survivors obligations itself • about equals pub- J:
One- of
the
lished figures of the national debt.
outstanding f irst.
_"}
-Lf",;'
y
wouldn't
way,
of debt and cash balances had been made. A
,
buyer best.
I
when
was
Thursday, June 2, 1960
competition, and we can meet it
only by our being prepared to
compete successfully in a
society
where
every * individual
and
every business enterprise—has the
right to choose freely in the mar¬
ket place the product which
serves
chnnge^seems
somewhat altered business
a
change in basic policy.. In any
moving upward at a rate that should
attention.
;
situation
,
instances, but the
some
reflection of
a
.
.
factbries
to-;;.'provide
bones of. industrial
broad
broad.
the,, bare
•
life. ^ In
part,
Then, quality^-the strongest of as we go forward in
it is-one thing; debt which does not
out.--soctety
a11 Possible sales
features,-and we we write more books, -we paint
provide in any way for its own
tp-meet this competitn
servicing can not but bC 5
have it in our domestic steel
prod- more
a burden
pictures^.: Wfr/.W'ake ."iiiore
Individual
upon some ether type of
companies
should ucts. But are
we selling it as hard '
activity and lies in a} hit
music, and ;we have imn^ lekurp
competition from other mate- as we can? Have
quite different category, There can be little
customers grown This/is all
question that}- rials head-on, application,
good But t
by ap- s0 accustomed to
the debt that we have been
^receiving and don't necessarily, take much steel.
acquiring in late years lies in / plication, and customer by cusworking with our- quality steels ^Bnt let's not
part in both of these categories. How much in
tomer.
forgetiT-while we
one and
c,,^. }v: that they simply do not remember have our;eyes- glued on the dohow much in the. other
repay
-
,
.
is
can
well
not
lose to sight.
Rather
a
" y.
question
this moment
to this phase of the matter is
to the economic status of
as
There
no one at
matter, though, that we all should
yy'}''7}y}}7::yyy7.."y''^y
closely related
the question
rowers.
It is
answer.
a
Finally, steel companies shouLd
establish
and - maintain :f contact
customers-beyond the pur-chasing "agents;"—: with
design
now
load of debt without risk
both to themselves and
to the
general public welfare. There is almost no
information
available about the economic
status of individual bor¬
rowers, whether
borrowers,
or
they be mortgage borrowers, installment
emergency borrowers, or in some instances
all three kinds in
campaigns
uals
to
now
One
one.
not well take note
can
constantly under
building real
for ourselves in the
future.
'
causes
-
.
.
-
commitment, and that
a
flexibility in the
total
if too
rowing on
the
tax
the range of possible
properties of
our
It is true that
more
imaginaapplication—greater
emphasis on innovation, the better
to
serve
existing and potential
markets—by specific, informative,
promotional programs, and by intensive and comprehensive selling of our services and products,
without
trouble
tive
be
forgotten that
debt is
a
many commitments
a
are
dangerous loss
of
some
slowing down
*•
'i-
vital
small
these
•
J
to do this real-
.
of
into
going
aluminum
places
or
where
materials,
materials,
and only these
do the best job. But
can
I am concerned that
steel does not
get
outsold,
vertised
outpromoted,
and
—
ing, economic,
of view.
-
-
from
serious
is
the
engineer-
and aesthetic point
years
Statement,
be-
couldn't
we
market today most of
products'we
And
ago.
I
/
^ompeuuon
brief word about another
,
a
aspect
of
Forpifn
the
competition
be wi h l fm
hfirT 1 liftil lT
il/ it
another, but
u
•
ti^
i
of today's products 15 years from
now. } We must
face yp to this
stimulating and challenging fact,
til J'.1
rising standards of living in other
of the World; will mean
tremendous demand for- manufac-tured goods;^ 'This will;also mean
steel to build factories and equip--
houses and
public/buildings,
,
for
1°^ processing -equipment;
and
the^-eritire 1-^nge/-oft^mmotcia-l
And we must have
greater-insight development such as we have seen
into what the requirements will in our nation for the past century
be in another 15
years.
or so- ' D ^»
One
factor
in} these 1 requirements will be the need for
higher
tion' that
quality steel
world
.
try
American ;indus^
as
to
moves
more
mechanization in
made
from
and
.
Why?} Because
in
ness
on
a
ma-
adjust for minor differ-
can
ences
more
producing items
steel.
the individual operator
chine
v
such
qualities as thickhardness. But usually the
or
automatic
machine
with
variations.
these
The
third
'
cannot
cope
selling
against foreign steel is
availability.
Of course, I know
the delivery situation
earlier this
weapon
year was
loaded with problems.
But deliveries from
foreign sources
take longer and are a
lot less certain. I'm not
going to belabor
this
point, but certainly
fail
to
ment
Who
use
we
signs
of
an
The
need
extended
going
for
exten-
The point
continuity
period
of
time
is the single most important
conre-
latf°nship in steel.
Remember:
Service,
Quality,
Availability—our triple line of attack against
competition from for-
confronts
us.
That
'> ,*
forget} in this
connecother nation in the
produces steel
of/ better
no
Quality,/of
greater ;variety,/.and
stricter adherence to the customers'/specifications, than, we do.
Let's not hide the light of Ameri-
steel
can
Let's
under
production
bushel, so that the
world can't see it.
not
get
so
rest
of
a
the
preoccupied
petition that we don't see, with
"the wise man's eyes," the potential of rising markets for steel in
the rest of the world,
So the challenge is to
steel
in
problem
>-i
is
sell'more
in applications
which
improve efficiency,
which ease the drudgery of life,
which promote a higher standard
of- living; new and better ma-
availability argu-'
dealing with customers chines,
in
show
this:
over
should not
the
sively to-foreign steel.
is
Let's not
with the problem of foreign com-
obvious
+
like
foreign
at -home —that
made; 15 ment, for railroads, highways and
transportation,;fori schools and
I£ay 10?' provlde a Permanent or basic
?*ne year ^an solutlon for the problem which
won t
go away
here
this will be true
We produce~im" eign producers. Notice I have said
"oth,ng ab°"t tariff protection,
nnVi ' t/ Y
^ecaus^ thJs does not, in my opin-
rnmnptitirm
and7 the
market
••
countries
sideration in the
buyer-seller
oorted steel
• j•.
steel
an
in
Beating Foreign Competition
Now
•;».
outad-
outfoxed
yes,
tionS;.where
right material
elapsed
it.:**,*
.
amounts
plastics
in the rates
i
.
with
energy, and with
promptness, I m not worried about
country.
months that have
by steel
istically,
system
during the
materials as they attempt to
invade markets that can be well
served
a
made
encourages over-borof businesses—since
interest is tax
there has been
material—by
/ tive. product
of the
.
•:
sell
itself.' Let's take the
offensive by better
understanding
part
deductible while dividends
are not.
It seems to us
that
these statistics which
the Department of
Commerce now
releases should cause
many of us to pause to
inquire about
the wisdom of the
debt trend in this
this year
.
This is the best way to sell
any
against other materials,
It is .the
route by which other
Again, I urge you most earnestly to meet the threat of competi-
amount,
our
r
-must
economic system
may well be suffered.
that
,
are
being sold against
you/It is the route by which steel
We fear that all too
often government
lends its support
or indirectly to these
campaigns to encourage
continuous
borrowing on the part of individuals and cor¬
porations. This is, of
course, particularly true of
mortgage
borrowing as witness the various devices
the national
government has created to
encourage and to make easy
extended
borrowing by a great many individuals. It is
true
"
.
directly
likewise
:./
the
re-
*
fact that
a
exact
materials
,
not
in
;/;,
'
general
a
the
even
material
.
Loss of Flexibility
it must
As
lieve it is
sell
.
steel.
'
l:. [
After all,
departorganizations
research
production rates and
with the styling studios
.
way to persuade individ¬
into debt for the most
trifling
wondering whether or not we are
go
of high
to them in terms
are
dueed downtime?
engineering
.
—in"
owe—so
.adequate are their assets, their income ~ or
earning power.; There are many others who without
doubt- are
already overindebted and should not add to
their
load—and, as a matter of fact, could not add to their
}
competition
fact, everyone who has something to do with the purchase of
can,
are
their
.
Vments
of course,- bevery little doubt/that:
individuals and businesses
aplenty in this country that could safely borrow a
good deal more than they ;
there
.
mestic
improvement
-with
groups
individual bor¬
how valuable quality and product
more
better
vehicles,
John
better
and
new
and
new
places
structures.
Roebling sold the Brooklyn Bridge
not just as so much steel, but as
a
way to move people efficiently
from
place to place.
The
seu ^
way
as
the
which
it
customer
siie strength.
ness.
sell
Sell
ease
Sell
>•
all
the superior
material
sell
to
-
.
steel is to
engineering
is
steel.
Don't
just-
Sell ten-
superior
hardSell
of fabrication.
tremendous impact resistance. Sell
corrosion resistance., Sell hardenability. And to the designer, sell
beauty.
which
Sell
are
so
all
low
these quality
in cost and in
Number 5956
191
Volume
...
Commercial
.
and Financial Chronicle
The
tzaey;
where they really Miss
places
those
Heckel Secy.
Of Wm. St. Sales
material.
economy has always moved
with your
Our
to mass
Burr,
market fruition These
been
This Week
commercial
United
plans.
1960
number
the
com¬
pany, which
is - national
distributor
of 1956.
of
c
54
The One Wil¬
liam
Fund
day.
the
was
last
holder relations programs.
A graduate of Goucher
College,
Miss Heckel was formerly associ¬
time
organization tried something
really new in the way of a sales
approach? I hope it was today.
your
And I hope the
tomorrow.
1
.
com¬
panies, we all worry most about
ourselves, not our industry.
So
where does all this urging to sell
steel
more
Companies and the
Institute of
with
better
leave your company
my
Aero Ind., Inc.,
Com. Stk. O'ffd.
Myron
com¬
your
in
company
it will
be
do
the
because
company,
successful
in
industry, for
an
any
for
my
firm
ing
common
unsuccessful
stock
(par
of
result
at
share.
per
Industries,
Inc.
was
or¬
ganized
in Delaware on Jan. 7,
acquire directly or indi¬
rectly all the outstanding stock of
four corporations and 80% of the
1960
to
stock
efficient capacity, fight¬
of
fifth
a
corporation
"subsidiaries"
of
the
California continues
incomes
to
be
team
selling
effort
on
is
at
Santa
are
engaged in
new
a
va¬
businesses
and
bine
of
tur¬
gas
$5 bil¬
lion annually in
steel, there are a
lot of people who are
staking their
livelihoods on the job ahead.
<
"
for
"The wise man's
eyes are in his
head; but the fool walketh in
darkness." There is no excuse for
walking in darkness. Our sales
problems are
tions with
and
are
importantly,
the
The
are
company
small
total of
a
and its
organiza¬
approximately
officers
and
employees and
minor position in the
various businesses in which they
have only
Barbara
Bank
doubled from
approximately
provides
of
southern
Pacific
10
re¬
ASSETS—
VniciPal bond field in
d their Third An-
Jacobs
26.5
5.8
53.0
48.2
52.0
(Real Estate)
Other
Co.,
or¬
and
Airways, Inc., organized in
Pennsylvania in 1959.
(Special to The Financial Chronicle).
Total
54.2
Assets—. $1,831.5
"i'VvTA.
LIABILITIES—
Capital funds
Deposits
(Time
DENVER,
chelder and
(313.4) (38)
47.3
are
now
connected
with
J.
of
••JSsUSt"
* <*• °-
B.
Co., Guaranty Bank Build¬
Mr. Batchelder was formerly
J. Clark Investment;
Mr. Kennedy was with G. R. Har¬
Henri
with Phillip
ris & Co.
CT
FlrnV t0 TME Financi*I. CHBONICIE)
®ND,
ber
jn,
Ohio-William
i'S now with paine,
(Special to The Financial
CHICAGO,
L.
man
Web- A.
is
now
.!:
& Co., 208 South La
Salle Street, members of the New
York
and
Midwest Stock
Ex¬
Noyes
changes. He was previously
Reynolds & Co.
&
Ohio
Co,
with
Wallace,
—
has
in the
opened
Union
a
Com-
was
formerly
officer of
an
6.8%
$117.8
7.0%
(40.1)
6.8%
(617.1) (40.4)
GREENBAY, Wis.
1.1
.6
2.1
29.0
1.7
1.7
Liabilities
$1,831.5
for Link,
manager
$1,527.4
1959—
Price Range
10.6%
'
40—22
■
1.59
1950—
.60
Koch
28—25
10.7
BANK LIMITE9
Amalgamating National Bank of India Ltd.
and Grindlays Bank Ltd.
18.10
8.8
16—12
p
Head
,
26
1959
amounting to 6.11% in 1959 and 5.87% during 1958.
two-thirds
of
earnings
are
derived
loans.
Net
presently is estimated for 1960. First quarter earnings were $0.69
a share, a gain of 17% over the $0.59 for the like period in 1959.
Although a net loss in 1959 was realized on securities sold, such
Office:
BISHOPSGATE,
London
„•
is
of
more
than offset
purchased below
course
1959
of
be
the
in
line
average
par
with
by future profits,
in 1959.
sound
at maturity,
on
April, 1959,
banking practice.
maturity of investments
a new
was
Checkway Credit plan
It extends to borrowers the convenience
line of credit by merely
to
writing
a
of
check.
recent years is the promotion of its
Branches
STREET, S.W.I
13 ST. JAMES'S
SQUARE, S.W.I
Govt.
ment
St.;
13 St. James's Sq.;
Nairobi;
Rd.,
Ins.
Travel Dept.:
common
of
price of 33 provide a 3.6%
rate.
The book value of
this
an
was
years,
in
International Department
leading
bank
at
the
PROTECTORATE
Branches
in:
INDIA, PAKISTAN, CEYLON, BURMA, KENYA,
TANGANYIKA,
ZANZIBAR, UGANDA,
NORTHERN
AND
PROTECTORATE.
SOUTHERN
RHODESIA
Earnings Comparison
First Quarter
Leading
N. Y.
City Banks
1960
tant
internal consolidation steps largely completed
$3
a
share.
excludes
With
and
the
impor¬
strong
a
capital funds base for new business, the shares of Crocker-Anglo
sound banking network.
on
Request
current
yield on the present $1.20 dividend
$23.76 at March 31,
a
13 St. James's Sq.
introduced.
Among the bank's aims
Debt reserve which approximates
believed to represent
and si
Parlia¬
the Government in: ADEN, KENYA,
UGANDA, ZANZIBAR & SOMALILAND
available personal
Bad
are
54
Bankers to
Bulletin
shares
Dept.:
At the close
4.6
customers.
The
E.C.3
The taking of security losses
comparison with 5.1 years at the end of 1958.
In
/■
LONDON,
54 PARLIAMENT
Trustee Depts.:
from
operating earnings increased 14.3% during 1959. Due to the in¬
creased shares outstanding, the per share gain was 8.3%.
A 25%
stock dividend was paid in 1958. At least a 10% gain in earnings
will
Dempsey-
NATIONAL AND GRINDLAYS
25—20
10.4
total deposits increased 8.5%, time deposits—
7.6%, total loans—19%, assets—8.3%, and capital funds—6.4%.
Further gains were registered during the first quarter of 1960.
Sizable time deposits allow an above average return on loans,
During
with
was
Tegeler & Co.
38—32
10.5
*
Jr., and Carlton Stritzel.
Mr. Reinhart and Mr. Stritzel were
with Link, Gorman, Peck & Co.
Approx. Bid
on
Book Value
Book Value
as¬
Also joining the Marshall staff
Otto
J.
Koch
III, John C.
Mr.
% Earned
Dividends
Gorman, Peck
are
Selected Per Share Statistics
Earnings
John C.
—
become
•
100.0% $1,691.9 100.0%
Net Operating
Year
has
associ¬
with the Marshall Company.
Reinhart was formerly local
Reinhart
Total
Sr.
sociated for many years.
(39.7)
38.4
Company
& Co. with which he had been
90.9
90.2
Joins
(Special to The Financial Chronicle)
Mr.
1,527.0
Reinhart
The Marshall
ated
V./;'\
90.5
Ross, Borton & Co.
Reinhart,
$1,527.4
Other liabilities
Chronicle)
111. —Philip D. Volkconnected with David
&
merce Building under the direc¬
tion of Lawrence W. Simon. Mr.
-v
18.1
in
With David A. Noyes
N°» With
Paine, Webber
,
John
2.7
.6
ing.
and reservations
Watif3 eTwlth Peter Whitman
CLEVELAND,
Geruldsen
•
(34)
2.8
100.0% $1,691.9 100.0%
.-'V
$125.3
1,656.7
(664)
deposits).
3.0
11.1
bonds
Colo. —Herman BatJohn M. Kennedy III
Vice-
Nicolaus
Branch in Cleve.
21.3
-
Reserves
loss
,
become
Stifel,
ADEN, SOMALILAND
Two With J. B. Henri
'
mav^m6^6"18
814.9'
s
(380.5) (39)
—
assets—.
Over
Penn
ri
ana
in Dela¬
will
of
Wallace, Geruldsen
6.4
971.6
in
ganized in Delaware in 1957,
ntm!£er 0uting °n Aug. 12,
Countrv
1 I1, Clair Inn and
Clair, Michigan.
SWimnri
S WiU include SOlf,
Party S a,?d cards- A cocktail
guests
x?lr?ner for members,
the aJLldtheir wives will follow
Prizes
ng
£olf and door-
organized
Theis
Simon
Pennsylvania in 1953;
1960;
Aircraft Engine
of
are:
Albert Theis, A.
Shapleigh
Boyd, Jr., Fred F. Farrow, Charles
W. St. Denis, Lee G.
Shuey, Leland
(Bud) Boogher.
hvj
f
98.2
20.64
1960
Actiiit^
i'H ', v,
448.2
20.44
subsidiary, of
Bankers
of the National Board
branch office
5.0
.96
80%
on
commit¬
Other members of the
Theis organization who are
join¬
ing Stifel, Nicolaus and Company
were
21.7
.96
ware
i,'
Carmel
90.9
2.19
Atlantic,
Detrmt
of
397.1
2.06
an:
for
Company.
In
U. S. Governments-
1956—
Inc.,
prominent
17.6%
1957—
i;li
been
community
having
served
years
Mr.
,
23.37
Atlantic, organized in Penn¬
sylvania in 1957;
Wellington Packaging Machinery
.
Bank
$23.60
Montgomery Enterprises Inc., a
wholly-owned subsidiary of
Basis Club Will
representation.
$282.916.7%
17.3%
.96
subsidiaries
has
financial
President
of
$317.7
$1.20
in
beAmerican 1
General Meeting of the
York Cbv m" a"d Steel Institute, New
City, May 26, I960.
nual
population
—_
2.30
The
in
Governors.
Dec. 31,1957
$2.49
^r" Worthington
anMich.^-The Basis Club,
tive fn n!a
of y°unS men ac-
The
/—Dec. 81, 1958—,
considered in relation to
program.
Theis
the
member
growth
,—Dec. 31,1959—^
Cash
1958—
going
successfully.
foreA^h«dfifie»S|f
33%.
"
-V
are:
required to meet
them, and
meet them
established
was
Association, as Chairman of the
Mississippi Valley Group, and
states.
a
the ability of the company and its
subsidiaries to carry out the fore¬
following
many national and local
tees
of the
Investment
(In millions of dollars)
engaged. Such facts, includ¬
ing the limited financial resources,
must be
1940
Stifel, Nicolaus
'
many
through 1959 to
population
years
California
Atlantic Aviation Corp., organized
solve
1950
Grove and The
5,306,625 shares outstanding.
are
companies
high
estate.
42
more
in
1956.
Statement of Condition
use
subsidiaries
represented in this audience have
the
insight, the imagination and,
most
by commercial concerns
the development of certain
real
some
the
a
&nd
engines, the leasing of light
distribution
employment costs of
sure
Bank
merged into Crocker-Anglo. Assets arising from the four banks
in 1959 amounted to $79 million.
These mergers were executed
through the issuance of 265,000 shares of stock. Presently there
aircraft and packaging machinery
am
National
Company
1890.'
Mr.
Crocker-Anglo is
First
&
Although the bank's present branches service primarily north¬
and
central California
areas
the
May, 1959 merger into
Crocker-Anglo of the County National Bank & Trust Co. of
com¬
every manager,
and every worker has a
part. With
I
operation,
in
his father's death.
future.
near
President
came
in
85
being
bank's first regional
are
8.6%, compared with 10.5% in 1959.
was
(all
ture
Every department,
clear.
numbered
offices
new
ern
relating to the projected manufac¬
the
earth.
daily becoming
of
Crocker
During the next ten
Loans
successful
12
7.0% of the national total in 1950 and
In 1950 California's share of
personal income in the
aries in additional
for
the
represented
counts?
no,
of
superior to that of most other
than
more
Other securities
is
& Sons was organized in
by the late Albert Theis.
Harry Theis, son of the founder,
joined the firm in 1918 and be¬
1914
,
riety of businesses, and to engage
directly or through said subsidi¬
greatest
of
Theis
for
mergers,
Crocker-Anglo was the
first commercial bank in the nation to
open a department to fi¬
nance the purchase of
automobiles, and the first to pioneer prop¬
erty improvement loans.
''■/?■;',
<;•
'
Management has been alert to profitable expansion
opportunties for serving the
swiftly growing population of California and
the rapid rise of economic
development. The business outlook in
dustrial relations? Am I
saying it
is only the salesman who
really
answer
Six
consolidation
now
pany) which
entire
the New York and Midwest Stock
offices
new
Excluding
Crocker-Anglo's offices
ing inflation, finding enough raw
materials, and improving our in¬
the
the
Exchanges, effective June 1, 1960.
been opened since the
beginning
held for approximately 20 offices.
Anglo California National Bank in
nation
25c)
that
in the
its
National
Aero
length of time.
Obviously the
seven
twelve.
of
September, 1959 The First National Bank of Monterey, The First
$3.30
saying to go out and sell
forget our problems of build¬
more
step-up
goal of
at
set
have
communities.
8.7% in 1959.
Lomasney & Co., of
City, o n June 1 com¬
Mo.—Announcement
made
branch
fifteenth' largest
a
Inc.
Am I
and
initial
an
the
the
public offering
of
250,000 shares of Aero Industries,
can
same
no one
and
announced
now
offices
new
California
California
menced
a
sounder, more profitable position,
and
A.
New York
pany? If carried out successfully,
emphasis on selling
leave
is
about $40 billion.
alone is projected
this renewed
will
From
'.end
.
methods
or
has
Permits presently are
Personal
Life Insurance.
•
■
competing
vigorously
As
ated with the National Association
of Investment
next time will be
California
year
Nancy Heckel
been
Exchange, has joined the invest¬
ment banking firm of
Stifel, Nico¬
laus
&
Company, Incorporated,
314 North
Broadway, members of
Stacks
BANK—
opened during the first half of 1960.
The
office is expected to be located at
Sacramento in the
Now in its ninetieth
Street
Fund, Inc. and
Scudder
the
twenty-seven
imagination and the talent to of Canada Ltd.
do this, because assuredly,
pro¬ She will continue to supervise this
ducers of other materials are push¬ activity as well as other areas of
ing new uses for their products the company's public and share¬
when
in
recently
expansion
the
And
bank
States,
correspond¬
of
Bank
—
Management of Crocker-Anglo National
Bank, the fourth largest
program
LOUIS,
personnel of Albert Theis & Sons,
Inc., member of the Midwest Stock
ence
tell him how best to
make it out of steel?
Or more
importantly, do you go to him and
show him how to use steel to capi¬
talize on his idea? I hope we have
every
ST.
has
CROCKER-ANGLO NATIONAL
has
shareholder
you
can
William
Nicolaus
Absorbs Theis Co.
BY LEO I. BURRINGTON
Inc., 1 William Street,
respon¬
for
the
sible
thermoelectric refrigeration They
nnen UP new outlets for materials,
f et's do the things that will make
them markets for steel.
.
<
If a man comes to your comMnv with a new idea for a prod¬
uct
of
been
Miss
Heckel
startling developments in
to
has
Presi¬
dent.
"Le all the way f rom metal curfin wall construction for bulld¬
ogs
Heckel
New York City, it was
announced
by Edward B.
engineering advancement. Many
developments are just now comng
Secretary
STOCKS
Street Sales,
technical and
direction of
the
•
Jane
elected
•
BANK AND INSURANCE Stifel,
Nancy
'"cell an engineering function, not
cf nme pounds of steel, and sell
the customer the pro/it he makes
za
•
Laird, Bissell 8 Meeds
Members New York Stock
Exchange
Members American Stock
Exchange
120 BROADWAY, NEW YORK
5, N. Y.
Telephone: BArclay 7-3500
Bell
Teletype NY 1-1248-49
Specialists in Bank Stocks
30
This Is Conservative Formula
budget is up from 1960. And for
1962 there are already in sight
traditional freedoms. Then
our
would
we
the
that
discover
growth
apparent than real.
We must not be charmed by
notion that Government is
a
the
wiser
of our economic fortunes
private enterprise.
We must understand that the
formula for adequate growth is
not for Government
to displace
private capital formation.
We must be alert to challenge
manager
than
is
,
the
of
panacea
"crash"
the
Getting
old
international relations, with a se-
more.
or
disarmament agreement,
cure
could
we
mula for economic growth. Above
all, let us learn from history that
with
by
get
.
.
ended
or
servative, and the self-discipline
Gross Na-
carry our
future tional Product close to the 750-bilacted on lion-dollar mark by 1970, without
to
about
bring
to
revised tinues, it will
be
should
which
grams
act
on
our
American
The Congress
only three, and when we came to risky
do the arithmetic, we found that kind
savings.
convictions,
will
economy
the
respond
artificial stimulants.
That and grow and continue to reward
of
growth
spells
more jn strength and in security the
instead
of
moreincome,
greater people of this free and fortunate
reducing future ex¬ wealth,
It means that we Nation.
•
penditures, they had increased our well-being.
make
conscious - decisions 1 ■
commitments by about 9 billion could
are.
Cases
to
Down
tensions in
..
If
we
have been pursuing was more
of those hard facts
some
Nor can we afford to dress up the
doctrine of "spending our
selves into prosperity" in new
clothes and pass it off as the f0r,
reduce
could
we
and ultimately remove
Thursday, June 2, 1960
.
economic soundness does not guarantee national greatness, but that
!
without it, no nation can be great'
incapable of being turned off. A tional security.
Beyond this, we can expect that
If we have the realism to see it
year
ago
the President in his
Budget Message listed 18 pro¬ if normal economic growth con- -this way, the courage to be con¬
kind, just so long as it is growth
—that
we
forget to
keep our
point is this: If we adopt reckless
minds on where we are heading.
Government spending to force up
our score in an international con¬ Certainly we can't afford to ignore
the hard facts that must enter into
test measured solely in terms of
a statistic
defined arbitrarily and governmental fiscal policy as we
our
future economic ex¬
called the Gross National Product, chart
we could find
that we have paid pansion. I'd like to describe what
through inflation,
budget deficits, and growing debt,
in addition to having sacrificed
dollars
billion
another
1
price
If
world.
the
.
.
much less
We would
Of course, there are few built-in spending for defense.
decreases, since Government pro¬ not have to continue to spend 54
grams
once
begun are usually cents of every tax dollar for na-
ForGrowthWithoutlllusions
stiff
of
increases
built-in
similar
Continued from page
this
why
That's
dollars.
billion
a
and Financial Chronicle
The Commercial
(2390)
project the history of the
we
last
10
.
will come up
with a budget of 160 billion dol¬
lars by 1970.
Impossible? Well,
it's no more impossible than the
progression of spending from 3
years,
we
dollars.
decades.
Do
ap¬
■;*
want to accept
we
this
things it doesn't include:
GNP, the Federal Government
be taking 120 billion dol-
of
Association
would
lars
in
than
1970,
billion
40
or
is
It
now.
too
not
Mutual
Savings
Banks
v:vvty..<><;:;•/
t -
-
A
'
j
~
J f i Achievement
more
to
soon
of
Washington, D. C., May 9, I960,
.v.;,
.
'v*:.:''/-, /•
-»
AWclTd BailGUet
brief
levels in just three
budget
some
a
taxes./..For example, if budget
receipts were to continue at 16%
Our already accrued liability for
plan what we want to do with that
military retirement is about 30
potential added income., -Unless o
».•
,/
billion dollars, and our unfunded,
we let it go by default to Parkinyouth today must "learn and acaccrual for
civil service retire¬
son's second law, which is that cept the important
responsibilities
ment is another 28 billion dollars;
spending rises to meet income, we Gf our private enterprise system
on
top of these, the future bill
have the opportunity to take care ,
through enlightened citizenship"
for veterans' pensions, compensa¬
in Federal
increase
long way from being all
owe for the
past. Here
are
in
25-fold
we
that
billion dollars in I960.4 There you
a
billion dol-.
of 290
debt
lars is
1940, to 40 billion dol¬
lars in 1950 and now to nearly 80
see
our
national
billion dollars in 1930 to 9 billion
dollars
;,S!is that
to what share we want
in
•
■
Fact Number Three
to take
as
pro¬
,
proach
as
colossal
spending in the
for gression
rationalization
a
as
of 1960's?
It's
name
formula for the
our
what
the demands for
growth.
These
the
are
illusions
involved
is
tion, and other benefits will come
in
to about 300 billion dollars. These
forcing economic
past services.
well
and
securely.
I extravagant forecasting by the
suggest that our watchword be advocates of big spending, little
"Growth Without Illusions."
or nothing is being said about the
The
goal of growth must -be debts that have been piling up—
more
solidly grounded than on and about the load we've already
economic wishfulness.
We have
a
delicately - structured
economic system, in which invest¬
ment and productivity and mone¬
tary policy play key roles.
We
certainly cannot take for granted
the expectation that our economy
has a built-in immunity to infla¬
tion. In the past ten years almost
ing
of
we
think
Federal
about
budget
take on in
Let
That
out
of 50%
creases
or more.
that
by
Soviet Drive for Growth
The
■
But
we are
asked—"If the Gov¬
ernment doesn't force
our
Here
national
just
are
a
we answer
bury
us
"Of
to
Khrushchev's threat to
be
we
stronger
continue
want
to
than
Russia,
but
dollars
over-stressing the meanings of re¬
cent
Soviet growth.
It is very
easy to discover a new rational¬
ization for big spending under the
slogan of "keeping up with the
It is true
that, the
Soviets have made rapid strides
differences between the two
systems. It would be
ishing
way
they
if
had
more
not
aston¬
found
take advantage of the
technological progress
to
of Western countries
method
gained
and by
years
of
It's
that
time.
while
much
easier,
for a
least, to add 6% a year to
scale of 40, than to add 3% to
at
scale of 100.
But
we
a
stampeded by their boasts,
hypnotized by alarms that
completed
backlog of 13
are
ized
lars
conservative, national,
fiscal policies.
These
there
ternative
to
is
no
acceptable al¬
conservatism.
Any¬
thing else works out to specula¬
tion; and in plainer language that
means gambling with the
country's
fiscal
strength which is essential
our security. There still can be
ample room, under conservative
to
fiscal
policies,
take up new
as we can
to be dynamic to
ideas, to move ahead
afford to do
so.
But the great danger is that we
be
so
clamor for
may
and
obligations,
unexpended
distracted
by
the
growth—growth of any
is
dollars
been
a
of
author¬
billion dol¬
30
the
interstate
variety of
coupled
with
balances in the
c.o.d.'s.
And
that
this
has
a
side, in that many of
expenditures will add to our
can
absorb
years as
them
the economy
Fact Number Two is this: Even
this
session
of
the
Congress
doesn't add any new programs or
increases to the budget, the level
of
Federal
The
in
reason
in
spending
will
is that there
increases in
which
are now
to
go
are
up.
built-
existing programs
producing and will
produce
in interest-
;
•
Fact
Four
comes
A table
in
the Congressional Record showed
that in the last session of Congress
alone, 20 major spending bills in
the Senate along with another 20
introduced
in
five-year
be
an
up-curve
expenditures. The catalog of
increases
covers
such
built-in
the
House, for
new
period.
While
there
duplication among
them, if these and other bills were
passed as their sponsors would
some
In the face of these
fiscal facts
life, what choices do
for
the
future
and
costly
find
become
even
more
unless the Congress can
solutions
farmers
can
faster
increase
than
their
the
Now, let
and
me
sum
spell
it
midst
do
they
signify?
and
of
men
are two ways of
looking
future, one pessimistic and
hopeful. The important thing
the
one
that
the
American
decide which
route
people
can
they want to
take.
On the pessimistic
a
side, there is
mortgage of 750 billion dollars
that will have to be paid. Builtin
increases will push expend¬
itures
up,
sures
are
Federal
more
year
after
mounting
more
of
year.
to
Government
and
ment's
Pres¬
have
take
local
responsibilities,
deficits,
money,
and
is
commodore Hotel.
Economic
in which teen-agers organize and
their
Taxation,
Card, and Inflation;
f
- ; f i
-^Compulsive Spending, which
has helped multiply the Federal
budget by 25 in just 30 years;
of
guidance of
^
John W. Remington, President
of the American Bankers Association
and President of the Lincoln
Rochester Trust Co., accepted an
"Achievement
Award"
for
the
,
"vital
role
played
banks in
by
America and Canada in the
tinuing
con-
.of, Junior
Achievement."- The Award was
-—Cancerous
Taxation; t h a t presented to Mr. Remington by
erodes initiative; fV 'H. Mosler, Jr., President of the
development
.
—
Government by Credit Card,:
Mosler Safe Co., and President of
that piles up unending accumula-: Junior Achievement, Inc. *
tions of debt;
j.
/ •; v" 1 ' : /
There were 49 Junior Achieve-
~~7 and the final destroyer, | Inflation, which if allowed to ride
unchecked, would wipe-out the
values of savings,
pensions, and
i
insurance.
These
;
enemies, if
..
don't
we
vigor much
easier
than
it
con-
would
succumb to Soviet attack.
our
view they
my
three:
are
First,
to
Next, to work for
and
are
growth, and
our
position
on
strong
a
sound
a
these
the
in
be-
healthy
maintenance
the
world.
budgets,
of
This
start
a
debt reduction and tax
reform,
against infla-
continuing fight
tion, and a realization that
a
pulsive
spending
tivation
haust
can
our
under
sooner
mo-
later
or
capacities
com-
any
for
ex-
sound
economic growth.
And
lastly, to work for the
over
domestic
of
use
our
for
govern¬
to find
the
right priorities, to end the old and
and
advance the new,
competition
to recognize the
among
purposes
and
keep them in proportion, to build
on
partnership between Government
and
the private enterprise
in seeking our goals.
This is the conservative formula
debasement
of
our
—and
weakening
of
our
relating
and
the
only safe formula—for
sound economic growth
governmental fiscal
policy.
afford to project our
Nation's
growth
these
sibility of reducing Federal
spending lies in what happens in
illusions
any
cannot
afford to do
so
on
more
in
our
the
than
Achievers
New York
;
"Facts and figures are poor
dicators
.
.
they
.
not
do
basis
we
in-
accu-
rately report the full measure of
gained by
ecutive
However, of
•
•
City
29
teen-age ex-
Achievement,
49 companies in
our
York
were
•
a
Junior
in
...
financially sue-
cess^u*
•
•
,
; 20
• • •
from the
co0
suffered financial losses
* profited immeasurab y
experience."
George Alpert, President of
the
New Haven Railroad and
man of the Junior Achievement.
Advisory Board of New York introducedthe award Presentation.
Arthur B Langlie President ol
the /^p3.11 CorP°ration was; Ba
quet Chairman and Toastmaster.
.
-
Irwin
KOSS
Opens
•
,
Firm
UWn investment ruw
rvwn InVf>efrment
most
resources
purposes,
economy
dent of the
econ¬
currency,
essential to
balanced
means
Reporting on their progClifford Stewart, 17, Presi-
New
provide for a strong
defense, with the fervent
hope that this necessity will be
temporary and rapidly decreasing;
omy
this year.
ress,
what is
We must decide how where
priorities lie, and in
ment companies in New York City
Association said:
.
trol them, can destroy our national
effective
economy.
business
with the
own
adult advisers from business. V
our
Destruction:
small-scale
operate
resolute
a
Spending, Cancerous
Government by Credit
the
to
™
,
•
com-
here: in
But
We
2
*
The young people—three from
recognition for outstanding performance in Junior Achievement
we
But it need not be that way. On
the optimistic side, the real
over
^Ihe'corZodore H^el
the prob-
have
we
pos¬
Now,
for
1961
alone,
built-in increases came to
a
plain that in
crop
production.
the American Bankers
Queens,, two from Brooklyn, and
from Manhattan -— received
Compulsive
cause
There
at
rattanshared honors foi achieve-
ment with
-
have enemies, too,
I call them the Four Horse-
own
anH
three-point
up
out
abroad.
enemy
,.
Queens
one
•
think
K
Junior
the American people
solution.
I
a
Banquet,
from Rrooklvn
:y'.
lem
Jacob
guests at
hn
T.on
Summary
have
we
what
as
outer
space,
civil meet demands for more spending
aviation, public works, merchant on many fronts. Unless we pick
shipping, urban renewal, science our way carefully through these
education, medical research, pub¬ proposals, we could soon have 100
lic assistance, loans
150
billion
dollar
abroad, and or
budgets,
veterans' pensions. The farm
pro¬ along with higher taxes or bigger
may
that
tnat -40
U
of
oi
national
Looking Ahead
programs
gram
said,
As I
programs, altogether priced out at
more than 326 billion dollars, over
a
Achievement
their
have
Hollar
dollar
every
Senator
500
.
Number
creasing in intensity.
is
expands. But this isn't all.
if
owe
We all know that the pres¬
for: new spending are in¬
sures
of
brighter
We
stop
,
de¬
for future spending.
these
to
like, they would add 50 to 60 bil¬
lion dollars a year to what we are
other
now spending.
huge
a
true
every
'
program, total 100 billion
dollars of commitments or C.O.D.'s
is
If
bearing debt and in obligations
past
services
and
other
fense
It
now
we
we
spepders
everv
nn
on
munism's aims
this:
for
may
begun.
over
complete
continue
I submit that in Government fi¬
nances
to
through the
living. I don't believe they will
catch
up in
seven
years or 27
years unless we play into their
hands by moving farther and far¬
from
not yet
assets.
of
billion
highway program.
viets
ther
but
It will cost
are
grounded in realism. The So¬
are
a
long way from ap¬
proaching us in their economic
development and their standard
works
there
and
—
that have
projects
nor
not
public
about 7 billion dollars before they
a
need not be
public
-
projects already started will re¬
quire expenditures after 1961 of
a
tremendous
off what
next.
for
eves
to
and action of the Federal
were
the
cause
eyes
we
economic growth.
consider
But
or
mortgage
spending
future
to do
must begin
burden,
States
javits told
plan the course right now be-
That's what
-
future
civil
Federal
in industrial output. But there are
vast
the
for
housing.
let's not make serious mistakes by
Khrushchevs."
"
; The
Federal
Government
is
committed to contribute 5.5 billion
economically?"
course
dollars.
of
right
now, and if we went on collecting
taxes at present levels, it would
be 10 years before we could pay
Merchant marine subsidies and
ship replacement costs constitute
Federal obligation of 4.3 billion
boosting
Government
v
a
growth by more spending, how do
s
of both.
some
United
or
750 will choose which of these routes
>
!;V
they wish to take.
I. hope the
the choice will be the right one.*.
promises of all that
can be expected to do
glib
Just
the
few:
Government's
process
buy another illusion—that it can't Federal Government is piling up
happen here.
C. O. D.'s faster than most people
realize.
magnitude
have to reckon with when
force
with just
is
the
■
tax
debt
the
reduce
to
the
relieve
to
Government
ernment's
One
nearly
America's future.
hear
deliberately
fostering sound growth.
Number
of
on
me
Fact
total
is
Federal
give you some idea of the
magnitude of the Federal Gov¬
Let's not
,
we
the
much
how
can
*
billion dollars.
American economy and as
the
we
believable
This, too, has a mean¬
measure the strengths
on.
as
for
on
v
time
same
of C.O.D.'s adds to the almost un¬
outstanding obligations,
four big facts which you
of 67—have had price in¬ can't afford to ignore:
half of the free-world countries—
29
taken
V
.
Now, the 290 billion of public
debt, plus 360 billion for past
services, plus 100 billion dollars
economy
complex,
obligations we've taken
are
through governmental
that— growth
instead of advancing our economy fiscal policy. It's what some peo¬
—can
slow down and ultimately ple seemingly would have us do.
But it's noticeable that in the
destroy our capacity to build our
at the
of real national needs and
of
can
private lives.
business
from offices at 1866 East
Street under the firm name^oi ir
win Ross Co. Mr. Ross ^as
merly a stock trader for Cappei
& Coengaging in a securities
r*
V
C
«•*
Cn
rorm Vju R. ocott va>.
OCEANSIDE,
N. Y.—G. K.
Scott
& Co., Inc. has been formed with
offices at 2846 Oceanside Road to
in a securities business,
Officers are George Kevorkian>
President
and
Treasurer,
ana
Alice Kevorkian, Secretary.
^
Kevorkian
was
formerly wit*1
David Blau & Co., Inc.
engage
Number 5956
Volume 191
...
The Commercial and Financial Chronicle
(2391)
conditions
Purchasing Agents Bullish
About Second Half of 1960
Though the Purchasing
Agents' Survey Committee
recent entries into the
market by the buyers
°n
i,
re-
so
Lionel
Corp.
Names Deering
v
W side are; Cutting tools, jute, burlap, calcium chlor-
ide, multiwall
On the
paper
bags.
.
„
down side
are: Steel
scrap; and, again this month, a5
reports mention better buys in electrical apparatus and
number of
Raymond C. Deering, Senior Vice-
equipment.
uncover increased
President
In short supply are: Phthalic
and maleic anhydrides show up
again as in short supply.
This situation has existed for some
months now.
business conditions they do not see any
extension of this trend in the last half of the year. In fact, 47%
bearishness in the current
predict the last six
or
porting.
months of 1960 will be better than the first half.
f{„JN?TE; Jhes®
figures for future
latest report of the National Association of Purchasing
Business Survey Committee stated that the year 1960
looked better in 1959 than it does after five months of 1960. This,
in itself, is no startling pronouncement, because few would argue
this point. It is significant, however, that a large group—39%—
of the members report that, to date, 1960 has completely measured
up to their expectations,
A small minority of 8% say it actually
exceeded their expectations, and 53% say that it failed to meet
their earlier predictions..,.
.V rS*,-
under General Business
Manufacturers
Board.
build¬
Pacific
have
to
inventories.
Only 6%
state
that
stocks on hand.
that
both
their
Food
production and new orders
Only 18% of the members
Committee finds
have deteriorated in the
say
of
their production has
is
sified
/
-
slight increase here, and a better discount -there, typifies
present price situation. While list, or book ^prices, on the
average are trending slightly upward, some of these increases
are
being offset by "good buys."
: ^
It is not possible to
categorically state that pieces are up or
down.
Balanced on the whole, prices are on a plateau, held down
by adequate domestic productivity capacity and the threat from
foreign manufacturers and held up by high materials costs and
This month, 19% say prices are higher,
lower, and 76% report no chang£.
rates.
A
Inventories *
/
real
company entered into an agree¬
ment pursuant to which it will ac¬
number of properties in
varying both
character and in stage of de¬
quire
a
Southern California,
in
.
diver¬
F.
Duke, Chairman of the
Fidelity Union Trust
Company; Herbert W, Marache, a
partner of Granbery, Marache &
Co.; David B. Chase, partner in
J. K. Lasser & Co., and John M.
Foley, President of the Airex
Corporation, a division of Lionel.
of
All
members of the company's
are
Board of Directors.
Part
of
N. Y.
Analysts
the. proceeds from the
sale of the notes will be used to
The New York Society of Security
$181,000,000 notes maturing
Analysts has elected Edward S.
June 15, 1960. The remaining $71,Wilson, Theodore Tsolainos & Co.,
000,000 will be added to funds
retire
.
President.
available to members of the Home
were
Other
Donald
officers
elected
B.
Macurda, F. S.
System to meet the Smithers &
Co., Vice-President;
demand for mortgage money.
Gerald L. Wilstead, Hallgarten &
Mr.
Smith
said
that
while Co., Secretary; and Edward
R.
June lu of feting of ftbt'es will in¬
Holt, Newburger, Loeb & Co.,
Loan
Bank
■
buying policy.
A
are
a
.Cy./
velopment. The various proper¬
ties are merely
summarized as
rather
sharp drop in inventory position is again reflected
May reports. The number of Purchasing Executives indi¬
cating higher inventories is at 17% for May, only two percentage
in the
points above the October,
1959, low in this category, when steel
were almost depleted.
Likewise, those reporting lower
(a) Nine commercial (shopping
center) properties, comprising
over 270 acres. Two shopping cen¬
seasonally large because of Securities Company has been
repayment by member institutions formed with offices at 5723 H. M.
of loans from the Banks; in addi¬ C. No. 10 to engage in a securities
was
tion
of
mortgage loans were season¬
business.
Officers
are
Eugene
these months Coleman, President, and J. A.
Coleman, Secretary-Treasurer.
slower construction activity.
ally
during
lower
follows:
inventories
inventories, 30%, rose four percentage points from last month.
Noticeable is the absence of any comments expressing a desire to
increase inventories.
There are many, however, who still plan to
make further
reductions.
construction
employment situation appeared rather depress¬
month; 68% report
no
change.
Buying Policy
'
•
-
.
A summarization
of buying policy as of today
like this:
a.
b.
c.
On
looks something
most
production items: 30—60 days.
supplies: Hand-to-mouth—30
On capital goods items: 90 days—1 year.
On
MRO
•
days.
ing
a
definitely toward shortening and most Purchas¬
Executives are keeping forward commitments on as current
need/use basis
Per-Cent Reporting—
60
90
6 Mos.
Days
Days
Days
to 1 Yr.
8
37
34
16
29
51
14
11
5
13
6
33
40
14
7
23
46
22
8
1
10
6
13
21
50
Hand to
Mouth
30
Production Materials
-
—
Capital Expenditures
MRO Supplies
Capital Expenditures
<
-
(c) Portions of several proper¬
ties, comprising 27 acres, which
are presently zoned for apartment
house or single home construction,
but about 10 acres of which may
rezoned
upon
commercial
showing need therefor.
(d) A single tract of
Air Force
be held
to
(single home and
for residential
(shopping
development.
1
(e) Several miscellaneous prop¬
erties, including a residential sub¬
division under construction; a
master lease and a $2,000,000
Trust
Deed
(mortgage)
on
a
downtown
Los
Angeles
office
are
For
In
this
of
one
Your
acquire
a
■
own
WILLIAM
copy
will bo rushed to you immediately oa receipt
the order form below if yon desire.
may use
the company will
general- construction
B.
DANA
CO.
PARK PLACE, NEW YORK
.
7, N. Y.
Gentlemen:
I
enclose
Name
Street
—
City—
ml
addition,
u on
protecting capital and intelligent defense of market profits,
of $1, may save thoasands!
dollar. You
25
and some milk plants
leased and held for in¬
come.
cask
apartment
46
which
on J
of investors who buy stocks somidly—even
outlines which stocks shonld be sold first.
1,120 acres,
Vandenberg
the
5
largely
local
YOUR market profits?
shrewdly—
falter when it comes to selling. Too many stand by helplessly while
prices and their market profits melt away.
Accordingly, we think investors will be eager to read this timely new
monograph—"WHEN TO SELL STOCKS." It sets forth thr 7 basic guides
for selling stocks and clearly defiaes tke 9 proven market signals that
warn when stocks
are too high and sale shonld be considered. It also
know wken to sell
Thousands
booklet is must reading. Its cost
25
re-
AND
ARTHUR GRAY, JR.
use
center)
Not much movement of prices in any specific item is
Ported this month. Such
changes as are noted seem to be
restricted to limited areas; and, in the main, reflect either?
for
5
»
By DR. IRA U. COBLEIGH
Do yon
(b) 76 acres of industrial prop¬
erty, to be held for future devel¬
opment.
building;
Specific Commodity Changes
"WHEN TO SELL STOCKS"
in late
1961 or in 1962.
house) and commercial
April
Production Materials
for construction
planned
Base,
May
MRO Supplies
scheduled to commence oper¬
near
possible.
as
"
be
The trend is
construc¬
ating by the Fall of 1960; four are
planned for construction in late
1960 and in 1961; and one other is
ing. Optimism was
expressed for some improvement
the year.
Some encouragement was hoped for this
ment last
under
tion, are substantially leased and
are
later on in
month and
actually the number reporting lower -employment did drop to
^1% from April's 26%. On the other
hand, only 11% report higher
employment than April, as against 13% reporting higher employ¬
presently
more,
Employment
Last month's
DO YOU KNOW?
operation, with further
in
process;
two
ters are in
''
Vv:;
.
.
finance
which, while em¬
phasizing the ownership and de¬
velopment of commercial (shop¬
ping center) properties, would
crease
the
Banks'
indebtedness Treasurer.
also acquire and develop indus¬
trial
properties
and residential $71,000,000 outstanding obligations
have been very substantially re¬
Mutual Fund Services
properties of both the single home
duced in 1960 and at the close of
and apartment house type. It was
(Special to Th? Financial Chronicle)
business on June 15,1960 will have
also planned that the Company
LACKAWANNA, N. Y. —Joseph
been reduced by
over one-half
would, through its initial acquisi¬
C. Mills is engaging in a securities
billion
dollars
to
$1,262,240,000
tions, commence business with
business from offices at 376 Sud¬
from
$1,773,660,000 on Dec. 31,
some properties already
in oper¬
bury Road, under the firm name
1959. The reduction, he said, was
ation, some scheduled to com¬
of Mutual Fund Services.
effected by retirement of matur¬
mence
operation in the near fu¬
ing debt from cash resources dur¬
ture, and others to be held for
Form Southland Sees.
later development.
ing earlier months of I960 when
the inflow of cash into the Banks HOUSTON, Texas — Southland
To
implement this plan, the
the
they
that of
was
well-financed
and
estate company
With the ready
availability of all materials, Purchasing Executives continue to
say
Boulevard, Beverly Hills,
The conception underlying
Calif.
and 8% state they will reduce their purchases from
large majority—80%—do not plan to alter their
present policy. >
V
,;-yv
5%
incorporated
23, 1959, and
office at 9744
principal
non-callable
15, 1960 and due
Agent of the Home Loan
Banks, and a nation-wide group
of security dealers. The notes are
priced at 100%.
V.-,..'.'.
its
4.45%
Lionel's
cal
Wilshire
The
increasing labor
com¬
rights will expire
Bear, Stearns & Co.
of the underwriting
Manager
has
of this year,
^
Properties
Banks
notes dated June
on
Board
Mar. 15, 1961 is being made June
1 by the Federal Home Loan Bank
Board through Everett Smith, Fis¬
The
its formation
shorten their forward commitments.
Loan
Assistant
as
committee with Mr. Deering are:
Roy
Offering June 1 of $252,000,000
principal amount of Federal Home
of
The company was
in Delaware on Nov.
/,
Commodity Prices
Coast
10.
group.
is receiving greater recognition. There
are
some
who strongly favor foreign buying, and others who
violently oppose it; 12% of our members say foreign sources will
become more important in their buying activity for the balance
Caution is the watchword in
shares
two
preferred stock held
stock.
June
on
Foreign competition
abroad.
Pacific
mon
22% report reductions. Not since the Spring
their production figures been so bearish. The new
order situation has also worsened in the last month, with 24%
reporting improvement, 49% no change, and 27% a reduction.
The employment figures continue to be depressing, with the
number of members reporting fewer employees mole than twice
as many as those who tell of additions to their work force.
Over-all prices continue to be stable; but, there are more
and more instances of competitive situations that result in dis¬
"book prices."
Giant
each
served
y::
Serving
May 26. Two rights are re¬
quired to subscribe for one share
of 1958 have
counts from so-called
com¬
stock of Food
on
while
increased,
for
and
which includes supervision of the
bank's 116 branch offices, since
con¬
Offered at Par
and
1929
Secretary, Assistant Comptroller,
Comptroller and Vice-President.
He has been in his present
post,
F.H.'L.B. Notes
mon
statistics, the Survey
last 30 days.
,
a,a:va-o. 1954.
,
options, rights to subscribe for
917,835 shares of Pacific Coast
Properties at $10 per share.
One
right will be issued for each com¬
.-V'V'
at May's
looking
In
seeking independent
is tracts.
Giant Markets, Inc. and to hold¬
of Food Giant employee stock
occur
they will increase
and preferred
tion to
Inc.
ers
without the benefit of any inventory build-up program, for 36%
of the members say they have definite plans to further reduce
their
Properties,
offering to the holders of the
mon
predict it will be worse.
evidently
Coast
in
ing in California. It is anticipated
that this concern will perform a
substantial portion of the com¬
pany's construction work, in addi¬
Properties, Inc.
Rights Offering
serious slump. In fact, 47% believe the second half of 1960 will
be better than the first half, 39% see no change, and only 14%
will
of
Company,
Deering, who has been a
Lionel
director
since
January
company which is engaged in both J
1960, joined Manufacturers Trust
commercial and residential
of the diminishing optimism about current business
improvement
the
Mr.
conditions, the critical question probed by the Business Survey
Committee is, "what is the trend likely to be for the balance
of 1960?" The N.A.P.A. Committee members do not look for any
this
Trust
of
Board
Corporation it was announced by
Roy M, Cohn, Chairman of the
Conditions.
The
However,
member
has been named Chairman of the
finance committee of The Lionel
Agents'
In view
and
General Administrative
current inventory figures should not be confused with the
inventory plans reported
31
*1.
Kindly rash my copy of "WHEN TO SELL
STOCKS" tos
I
32
Twin City
SECURITY SALESMAN'S
CORNER
price increases can be
through and made to stock.
pening to him day in and day out.
The speculative pot is boiling but
it is doing so on only one part of
the stove. The new issue activity,
bond
club members will be $3 for the
cocktail party; $8 for non-golfing
members;
and $12 for
golfing
members. Guest registration fee is
$30. Reservations should be made
with Richard McFarland, Kalman
the
&
Institute
Minn.
from where I sit,
the
emphasis today among the rank
and file is on speculative PROF¬
ITS. Never before have I received
■so
offers of market letters,
many
charting services and particularly
"Science Stock" tipster sheets. My
dentist is
dedicated
a
who
bought
fxom
me.
It
man
investment
three thousand
a
was
dollar purchase of a
Mutual
young
first
his
growth type,
When he bought it
Fund.
I explained to him that he would
off
better
be
and
leaving
practicing dentistry
buying to
stock
the
a
jam up of new issues in reg¬
istration, the great public interest
in short-term trading profits, and
in
speculative,
venture
type, issues is evident everywhere
except in the great body of good
quality common stocks that rep¬
highly
,
he finally finished
six weeks session trying to save
aching tooth, he gave me a
lecture (along with the drill) of
resistance
areas,
support levels,
dividend payers,
the solid earners,
companies that are the back¬
the
mail
direct
a
tape record¬
replete with
stocks,
charting
in
course
ings and charts. He is playing the
on paper and he is serious
about it. He said he once bought
market
Central at 34 and sold it at 25 and
to do that again.
he doesn't want
buy a certain
it hits 41 on a
selling climax when the market
has a 5,000,000 share day and panic
He
to
promised
stock through me if
is hitting the street.
issues of this bull
only in glam¬
neglected
that
market
exists
evened up.
about
now
and selling has
Several months
buying
the odd lot indexes have been
bearish—possibly
to
coming
are
we
turn. I never knew this man
a
well but I had no idea that
he was following odd lot trading
very
and other market indices. He used
to
insurance and
buy good
bank
stocks for investment.
ing the rounds of large brokerage
firms
and
branch
offices
keep
file.
on
stocks that
electronic
Off beat
some
service will
ommend as an attractive
rec¬
purchase
for price appreciation
but
will not only
buying of the novice
partners of some mem¬
the
attract
even
ber
firms.
It
like
seems
dipping
is
everyone
treasure
chest
venture
type
of
specific. It is the era of mystery
and companies that defy the anal¬
the
understand
have
must
going
keeps
THAT
so
science
JUST
OR
RISE,
HAS STARTED,
RISE
or
Salesman, are elected
Mr. Security
it!
to do
Want
You
Be
So
there is
to
Be
Smart
a
One
no sense
are
do
we
Certainly
do.
Romans
stocks that
Roman
a
in Rome and
are
we
the
like
in recommending
without
glamour, without a
"go" to them. The other day I
heard the head analyst of a large
firm
explain
that
brains
and
growth
being capitalized at a
are
ratio that takes into consideration
a
should
years
are
company
earn)
on
hence. The
out. If
do about
will earn (or
its stock five
yardsticks
old
there is little
so
we can
it, and if you are in this
busy business to make money for
your customers (and for yourself)
certainly
you
should
buy
the
stocks that are popular and not
neglected.
But
do
in
there is
thing
one
you
can
along with all this hullabaloo
order
to
keep
your
record
straight and your clients heads
many are making it pay.
from going completely haywire—
The New Issue Market
you can maintain your own equi¬
librium. When you are speculating
Meanwhile, the new issue cal¬
for a "turn" in the stock market
endar is jammed with every type
sure
that
your
customer
of offering that one can ask for. make
understands
that
you
have no
The SEC states that it is so busy
crystal ball. Don't oversell. Don't
trying to expedite registrations
over
promise. In fact, point out
that the delays of from one to
several weeks in the offering date that if you are wrong you want
of new issues is now normal pro¬ to run and run fast. Expect some
Come
cedure.
all, and
come
one,
the security salesman is receiving
calls
telephone
from
complete
strangers
who hope to get in on
fast moving over-subscribed
some
hot issue.
week
Last
call from
I
had
some
man
telephone
a
whom
I
had
heard of before in my life.
never
He must have made calls to every
stock brokerage firm in town. He
told
me
gave
he
me
from Boston, he
impressive local
was
some
references; he gave
of
another
and
he
broker
promised
the
me
(a
me
name
fine
firm)
business if
losses, and make this point clear.
Try to limit losses. Try and be
of
be
to
so
cated that I didn't have
to take
alone
care
of
them
closely allo¬
a
chance
of regular clients let
assist
strangers who were
only looking for sdme easy, quick
turn, profits. A lady I had not
done business with in three years
called me long distance, collect.
What
shares
did
of
she
an
want?
issue
tight there wasn't
Only
that
even
group.
was
a
200
so
selling
Joas,
Trim
On
the op¬
that
announced
erating rate of the steel companies
will average *109.9% of steel ca¬
beginning May 23.
week be¬
1960 was equal
65.6% of the utilization of the
ginning May 23,
Jan.
capacity of
Estimated
for this week's fore¬
on
that
capacity is
net tons.
percentage
cast
annual
1960
1,
148,570,970
based
A month ago
the operating rate
(based on 1947-49 weekly produc¬
tion) was *133.0% and production
2,137,000 tons.
A
the
year ago
ac¬
tual weekly production was placed
at
2,653,000 tons,
♦Index
age
*165.2%.
or
of
production is based on
weekly production for 1947-49.
voted
Club of New York has
the
establish
fellowship at
a
School
Graduate
of
Business
Club
of
New
"The Bond
York
Fellowship"
winners
tastic
ever
in
of
one
"bull
in
seen
the
markets"
fan¬
most
have
we
miracle,
rudder
how"
This
and
because
isn't
the
plenty of "know
may need it.
you
time
for
the
pose
pert analyst,
some
or an
may
money
be
able
to
ex¬
market but you will need the un¬
derstanding
some
very
and
cooperation
adult customers.
of
in
total);
that
This
increase of 2,589 cars
was
29.7%
or
the
above
corresponding week of
cars
or
122.2%
above the 1958 week. Cumulative
loadings for the first 19 weeks
of 1960 totaled 199,176 for an in¬
crease
of 56,687
cars
or
39.8%
1959
and; 6,213
the
above
corresponding
period
of
1959,
and
111,402
cars
or
126.9% above the corresponding
period
1958.
There
S.
in
I
railroad
U.
were
52
systems
originating this type traffic in the
week
current
one
compared
and
ago
year
with
40 in
the
47
cor¬
responding week of 1958.
Intercity Truck Tonnage for May
Week
4.8%
was
Below
The 1959 Week
Intercity
truck
tonnage
in the
est
ponding week of 1959, the Ameri¬
can
Trucking Associations, Inc.,
announced.
Truck
tonnage was
1.3% behind that of the previous
Monthly
Volume
Production of
for
Since
1955
than 631,000
more
during June will be the high¬
total
an
since
the
auto
industry
set
all-time record of 721,000
cars
in
1950, "Ward's Automotive Re¬
ports" stated.
The
reporting service said the
estimate, if achieved, would
be nearly 16,000 units or 3% more
June
this
month's
improvement
blies in June
estimated
557,995
over
a
pro¬
13%
a
assem¬
21,
4.8%
was
in
the
corres¬
week of this year.
These
findings
weekly
based
are
on
the
of 34 metropolitan
areas conducted by the
ATA Re¬
search Department. The report re¬
flects
survey
handled
tonnage
than 400
at
truck terminals
carriers
mon
throughout
of
the
more
of
general
com¬
freight
country.
Slight Dip in Business Failures
In Week Ended May
year ago*
Estimated May-June production,
combined with output in the first
four months of
the year would
May
volume
25
Commercial and industrial fail¬
dipped
ures
to 299
the week
the pre¬
in
be
will
occurring in the similar week last
year and the 278 in 1958.
How¬
ever, they remained 1 % below the
be
of $2,500 mated
calendar year, 1960, proinitially in •duction of about
6,500,000 cars—
each of the school years 1960-61
a five-year annual
high.
and
1961-62. It
is contemplated
"Ward's" revealed that for week
that recipients of the fellowship,
ended May 28, estimated auto out¬
upon graduation, will be available
(144,027) dipped 7% under
to assist financial institutions in put
week's
154,755
units,
research
and to
teach financial preceding
in
subjects
the
amount
effective
be
in
colleges
univer¬
and
sities.
The
Bond
was
formed
ago
as
an
Club
of
New
than
more
outgrowth
Street bond group
tive in the sale of
40
of
York
which
had
for the
The
years
Wall
which was ac¬
Liberty bonds
been
13-week
a
high
industry.
lower
followed
a
gomery Street.
He
was
dotted
by only
plant schedules.
Ford
Motor
week
volume
that
few
a
was
overtime
Co.'s
Falcon
and
Gomet
assembly lines continued
their Saturday work
plan, but the
rest of the
industry maintained a
predominantly five-day
Week-long
shutdowns
program.
in
were
6.2% Above
1959 Week
The
Form First Western
distributed
(Special to The Financial Chronicle)
and
MINNEAPOLIS,
Minn. —First
Western
Corporation has
been
formed with offices in the North¬
western
National
Bank
amount
Building
to engage in a securities business.
ended
electric
the
Saturday, May 28,
timated
according
Institute.
energy
electric
light
industry for the week
power
kwh.
Form Merit Investors
by
of
at
to
the
Output
above
was es¬
13,572,000,000
that
Edison
104,000,000
was
of
kwh.,
Electric
the
previous
week's total of
FLUSHING, N. Y.—Merit Invest¬
ors
Corporation
is
conducting
13,468,000,000 kwh.
and
gain of 794,000,000
showed
a
a
securities business from offices at
59-08 Kissena Boulevard.
kwh.,
or
6.2%
above
that
comparable 1959 week,
of
the
the com¬
level of 303 in
prewar
parable week of 1939.
Failures involving liabilities
$5,000
or more
275
week
a
continued
small
earlier
although they
232 of this
the
On the other hand,
casualties, those with liabil¬
from
the
of
fell off to 259 from
above
ities under
and
Electric Output
Co.
ceding week, reported
Dun &
Bradstreet, Inc. Despite this de¬
cline, casualties exceeded the 264
size last year.
production
work
a
previously
with Francis I. du Pont &
make
out of this particular
I960
included
were
over-all
in
14,
and
will
expert at trad¬
ing—you
as an
May
-
will
se¬
curity salesman to
revenue
ended May 26 from 313 in
and
the
reported
(piggyback)
ended
week
cars
more
or
given to a full time
student majoring in finance who
figure to a first-half total of about
is a candidate for a Master's or
3,800,000 cars. This, "Ward's" said,
Doctor's degree.
The fellowship would form a solid base for esti¬
and
under¬
underbrained companies, you
had better have a strong hand on
one
trailers
(which
an
11,297
were
June May Top 631,000 Cars, High¬
mystery,
many
May
the
duction of 615,600 cars and
as
of
ended
than
It will be known
the
21
Production
announced by Wil¬
liam .B.
Chappell, First Boston
Corp., President of the club.
was
week
below
Auto
Administration of New York Uni¬
versity, it
or
week
Estimated
cars
to
There
aver¬
est volume for any similar month
since 1955 and the third-best June
The Bond
cars
corresponding
*
/
the
in
loaded with
Class
61.9%.
66,383
the
the
but
21, were 3,146 cars or five-tenths
of 1% below the preceding week.
week's
to
decrease of
a
week in 1958.
weekly produc¬
1947-49).
These figures
compare with the actual levels of
*116.4% and 1,870,000 tons in the
on average
of
Actual output for last
of
above
highway
(based
was
increase
for the week, beginning
May 30, equivalent to 1,765,000
tons of ingot and steel castings
pacity
Alphonse J. Grun,
registration;
Stanley R. Manske, First National
Bank of St. Paul, publicity; Law¬
rence E. Shaughnessy, Jr., Shaughnessy & Co., Inc., St. Paul, golf;
George A. MacDonald, First Na¬
tional
Bank, prizes; J. D. Mc¬
Carthy, Jamieson & Co., boating;
Albert J. Berglund, First National
Bank, special prizes; Oscar Berg¬
man, Allison-Williams
Co., Min¬
neapolis, and Guybert M. Phillips,
Caldwell, Phillips Co., St. Paul,
prize solicitation; William G.
O'Connor,
Dean
Witter & Co.,
Cocktail Party; Charles J. Rieger,
Merrill Lynch, Pierce, Fenner &
Smith
Inc., entertainment; Wil¬
liam H. Thayer, Woodard-Elwood
&
Co., transportation; Leighton
H.
Borin, National Securities &
Research Corp., tennis and horse¬
Fellowship Fund
By NY Bond Club
This
nounced.
Loadings
Steel
and
Iron
Ended
Loading of revenue freight for
week
ended
May 21, 1900
totaled 636,808 cars, the Associa¬
tion
of American
Railroads an¬
61.9% of Capacity
American
The
First National Bank,
shoes.
Output Based
This Week's Steel
Week
the
11.6%
week
rummy;
Loadings for
May 21 Decreased 7.2% Under
Corresponding Week in 1959
an
costs.
Smith,
Barney
& Co., ' general
chairman; Leo L. Quist, Harold E.
Wood & Co., St. Paul, bridge and
gin
June 2, 1960
'. Thursday;
put 49,344 cars or 7.2% below
corresponding week in 1959
(2)
that
tion
capitalized and often understaffed,
Everyone
out
picnic
1960
Kenneth
are
capacity so
industry's
the
strain
will have enough to cover
of
issues.
v;"-';'
the
of
Members
rummy,
Managers mention two
force at Studebaker-Packard and
Now With Reynolds
his
y
Chrysler Corporation's Los An¬
losses.
Be grown up about this
(Special to The Financial Chronicle)
geles facility. Three Ford assem¬
thing — there
are
no
"Free SAN
FRANCISCO, Calif.— bly sites and a Buick-Olds-Pontiac
Lunches" in Wall Street.
Thomas W. Smith is now affiliated
plant were reduced to four days
When it comes to trying to pick with Reynolds & Co., 4 2 5 Mont¬
operating time.
he
science, glamour and
six
boating.
committee
gin
and
>
bridge
tennis,
and
the golf tourna¬
will be horseshoes,
to
customer
I could get him 200 shares of each
turned
there
ment
"
•
addition
the time but tell
during the first World War. It
if you are lucky
now has over 750 members
repre¬
enough to hit a few winners not
to expect the impossible. Explain senting investment banking firms
and major financial institutions.
that the times you are right you
want to let the profits ride so that
right
your
50%
Co., Inc.
In
follow¬
a
without
ing,
and
stocks
IT
the fellow who buys ten
10,000 shares. And you,
says
shares
ONE
BEFORE
BUY
TO
A
AFTER
ME
GET
up;
CAN
I
STARTS
almost
into
the
speculative
lay public. We don't
it, so this company
something. A stock
of the
ysis
what
Certain market letters are mak¬
them
tips. The 1929 stock buying craze
was
indiscriminate; this one is
that
me
the odd lot fellows are now turn¬
ing—the
science, brains (we hope) and
our,
If
Another customer tells
in the main
of America are
bone
an
objectives, buying and selling cli¬
maxes,
and something he called
"pop-ups." He is paying $500 for
The
industries.
basic
the
resent
the
experts. He agreed.
Last week, as
Every security salesman could
tell of such incidents that are hap¬
—
Club. Tariff for
Bear Yacht
looks
overhead paid.
Still others are being pressured by
dealers to lower prices.
and
intact
forces
solutions
for the profitless prosperity: (1)
Wait
hopefully for a boom to
Speculations!
.
Car
Continued from page 5
The
Twin City Bond Club will hold
its 39th annual golf tournament
and picnic June 16th at the White
Recommend
When You
.
STATE OF TRADE AND INDUSTRY
/
Golf Tournament
DUTTON
BY JOHN
Commercial and Financial Chronicle
Bond Club
MINNEAPOLIS,
As it
The
(2392)
$5,000, edged up to 40
previous week
Thirty-three of
failing businesses had liabil¬
32
ities
in
38
last
in
the
year.
excess
from 29
in
the
$100,000, rising
preceding week.
of
The toll among retailers dropped
to 131 from 150, while milder de¬
clines
prevailed
construction,
in
down to 48 from
55, and in man¬
ufacturing, off to 46 from 49. Con¬
trasting increases lifted whole¬
saling casualties to 36 from 28 and
commercial service to 38 from 31.
More
concerns
year ago
succumbed than a
in all lines except man¬
ufacturing
and
Five
of
the
in the
about even
retailing;
latter group, tolls were
with the 1959 level.
nine
major
geo¬
graphic regions reported declines
during the week. The most no¬
ticeable
the
downturns
Pacific
place in
took
States, where
casual¬
ties fell to 55 from 74, and in the
New England States, where they
dropped to nine from 21. In con¬
trast,
Middle
Atlantic
failures
climbed
to
105
from
86
and East
North Central to 55 from 46, while
mild
increases
occurred
in the
West
South
v
Central
and
Moun-
191
Volume
mortality
.Business
states.
•
tamppded
Number *5956
'
in one.
The Commercial
.
Retail
n^Pn
in
Trade
and Financial Chronicle
Fractionally
Below
unpleasant
weather
many areas held consumer
week
close
to
the
prior
trade
pe-
was
from the similar
fractionally
Although the
Price Index, compiled, oy J^un &
Bradstreet, Inc., was uncnangea
Jhis week from the prior ^penoa,
u
was
down somewhat trom a
vear ago. On May 24 it remained
at $5.94, and was
°wn. o
m
Our Reporter
in
buying
nod, and over-all retail
down
ju^v
(2393)
National Cash
Year Ago
More
this
Wholesale Food Price Index
Unchanged
Unchangea in Latest Week
v
.
level in six
last year's
Sons, dipped in two and held
steady
.
T\
1
f~\J}J*
~i
period a year ago. While volume Dillon, Read & Co., Inc. heads a
ln men>s apparel, outdoor furni- nationwide underwriting group
ture, some appliances, and new which is offering publicly today
BY JOHN
T.
CHIPPENDALE, JR.
■
passenger
year
~
+
moderate decline
in the general commodity price
level this week, reflecting lower
Sales
West North
u
is resulting in purchases of the
most liquid Government securities. The. demand for these bills
has been spilling over in some
Department
%
,
steel scrap.
the
company
into the electronic busi-
machine field.
oats, the Federal Reserve Board's inThe company and its subsidihogs and steers. The Daily Whole- dex for the week ended May 21, aries are engaged in the producsale Commodity Price Index, com- i960, show a decrease of 1% be- tion, distribution and servicing of
piled by Dun & Bradstreet, Inc., low the like period last year. In business machines, including cash
increases on corn
set slight
(1930-32
stood at 273.86
100)
=
on
the
preceding week, for May 14,
** 27, compared with 274.40 on
May 23 and 276.41 on the corre-
decrease of 2%
the
four
sponding date a year ago.
1%
increase
that yields in some
exceeding
expecta-
2%
ended
May 21, a
registered over
was
the
tions, trading in wheat slackened
somewhat during the week
and
reported. For
was
weeks
a
On reports
were
areas
prices were somewhat below the
prior period. Rye prices finished
at the end of the week
Unchanged
after
Rye
were
slipping earlier in the period.
offeringsin * some markets
light and supplies were lira..
.,
.
,
,
.
Reflecting an appreciable pickup in buying, corn prices moved
UD modpratoTv
from % wppt
Mr
lier. 'The increased volume
was
result of unfavorable weather
ditions
in
a
con-
some
growing
areas
planting. Trading
steady and receipts
which delayed
in oats was
were
light
which
helped
prices
edge
up.
Soybean
from
the
preceding ^week 'as
ceipts moved
lagged.,.
^
/
and
dipped
re-
transactions
-v.
'buvine
Flour
.
up
prices
t
" confined
was
toniinea
" r"
o
scattered fill-in orders and
to
XO
prices
ceding^weekehExportrsa?es'of f?our
dipped
at the end
after commitments
of
the
were
increase.
According
to
the
Svstem
serve
s£des
New
welk
ended
reported
ias,
vpar
inded
York
Mav
Was
th
Citv
21
of.nce
a
-
prices
was
were
week earlier.
week
made
to
moderately,
unchanged from
UP
over
the
vuC
preceding
nrei-edino
the like period last
and
week
i<y
four weeks
a
orn
ending May 21
was
reported
J
,
over
*
^"showed 3^6%
May
prices
For
year.
a
the
d c
increase
j
!,
£"? S®11"
L nthir fnr"
factunng operations in other foro
^
JToU*ccTorviKixr
countries.
eign
Unix
tn
i
cocoa
came
bags> compared with
ln the slmilar 1959 pe-
hod.'
Thpro
ne^e
to
■
on May 26
increase
xxxuxecxae
traadlng
hncr
a
at the end of the
X
moderate
" »*«««««
vestment
Co.
stock
common
(par
ln
$40,000,000 in sinking fund debentures; and 7,956,515 shares of com-
at. $J-50 Pf.r share- wilhout mon
beneDt of a selling group,
The
The company
First
will
pro-
and lend-
'
but transactions
re-
Qf
"pOTTrl
XXciW 1
Ol.
receipts
slightly.
changed
in
Chicago
were
T/^rlo^T
X UU-Ciy
a
„
Copies
of
_
the
.._
.
Bawl
_
unaer me aci ana me ixxsi xxx
mc
Illinois, Indiana
tion in Montana,
Street
are
c! !ng week>
Exports
C^irifipc
w
haq
Banner securities, mc.^ jias
Ranner kepurmes,^ inc. nus
been
^
tormed Wltb
f
way» New York Clty ^care of
engage in a
oS14'009
'5P00
bonding
bales
bales during the
period last season
corre-
.
comeovernight.There
question
but
and
associations
loan
what
.
.
securities
Buell has become associated with
1412
sizable
A
Secretary-Treasurer.
Both
£). W. Collins
Opens
Rand
Chronicle)
LOS ANGELES, Calif .-George A.
of Hay-
Form Foresight Inv.
...
TnvPStorsvCo
has
been
den' St°ne & C°" 5657 Wilshire
formed with offices at 140 Nassau
was pre- gt^ New York City, to engage in
Boulevard.- Mr. Briggs
viously with Paine, Webber, Jack-
a
securities business. Isaac Nachsole proprietor.
man is
giving
are
Executive Committee of American
Express Co., has been elected
President of 7U. New York Cham¬
the
ber
Brads tre
ed
in
the
the
oast
t
Chairman
of
the
ber's
Cham¬
Execu-
Commi t tee.
Both
will
serve
until
May, 1961.
Ralph
Reed
Mr.
T. Reed
succeeds Isaac
Grainger, director of the Chem
icai Bank New York Trust Co.
the
57th
in
President
the
Fie
192-
history of the Chamber, the
oldest organization of
year
^
demand.
new
e
Inc., was elect¬
ease
^at be arecredit conditions a
inch ed to
Of¬
ficer of Dun &
is
' Tnchned ^to "
Chair¬
and Chief
Executive
g
xu.
Newman,
son
man
from
-
Com¬
J. Wil¬
Board
bearing obligations.
-^-x
of
merce.
market unless the powers
nation's
How-
businessmen.
monetarv
Mr. Newman succeeds Walter E.
authorities have kept money and Sachs senior partner of Goldman,
credit, on the tight side when Sachs and Co., who was named a
strong.
increase
^
#
spending by
in
Government for defense pur-
poses,
which would not have too
Robert Lehman,
man Bros.
,
partner of Leb-
The Chamber's membership of
much of an effect upon the budg-
2,000
could most likely be taken
stride. This would have little
This would have
in
many
or
or
representatives of
of the nation's largest busi-
ness,
ness,
et
„0
a
Building under the firm name of
D. W. Collins & Co.
no
;
addition, the cost of obtain¬
or
few
nearbalance
between
and outgo. There
income
'
rHayden, Mone
flight
a
balance
Donald W.
were BUFFALO, N. Y.
Collins is conducting a securities
Uairrlon
& Curtis.
income
in
17th Street. .He was formerly with
business from offices in the
son
resulted
Bailey & Company.
T.evine.
is
savings
_
deficit financing.
to
money market
influence on the mone
since
there
would
still
be
a
Frank
jQpnh
again
modest
year.
the
tbe mutual savings banks plenty
°fcompetition for the savers
This might bring to life again the
inflation fears which in the past
AVPr
BAKERSFIELD, C a 1 i f.—George
of Briggs has joined the staff
cornerph
resort
a
Francis I. du Pont & Co.,
are
Officers
fk„qp
(Special to The Financial
through^av^oa^ fhG
of balance
sharply out ot balance. A defense
sizable
step-up in outlays. for
meeTsu?^
With Francis I. du Pant
Form Banner Securities
H•
closeP to
thTenWbaS-pdces
Lnited
to throw the budeet
as
mft
sharolv
the
Were un~
CoUonFaExcha°np ^
to
.
.
nroDortions
already running well ahead
last
in order to
market. It is evident that the ill- VT V
A"f
fated Summit Conference is going 1 > • 1 • UXld,lIlLKJX Ui ,
to bring about changes in our P/xyv-i yyip-pCP F.lppfc; '
defense spending and the imporLC UllcLUo
tant question now is whether or
r.
.
..
not there will be increases of such Ralph T. Reed, Chairman of the
x_-,-x
w7"nWi
of
and Michigan.
Joins
7ork
.
..
money
lichee MA
of
spite of payments to theTreasury And the current feeling is that
^or taxes, it would indicate that
y
fx
f
Jorpo i,?ns are well fixed for
f
nithnnuii
if"io nnt uirei-tr
+
.
lack
apparent
The savings banks
,
ing this money through deficit
operations of the Treasury would
have a tightening/effect on the
Trading in lambs formerly with J. A. Winston & Co.
and prices
an
liquidating pressure in these
bonds, since the holders of these
otJhe m.°ntb- £!e|n to™!?
R this demand should persist in ^ §° Jo 4%onsavingsdeposite.
In
Trmwial
moderate
a
Se^-or\ thd
fixed
d UUI llcXl
Qfo-nrla
DLdllQb
V/Il
^jned close totheweekearlieT* Ebner' President; Jacob LevinG'
cattle
"own
,5 Y"
F
buyers of these securities,
will have income tax payments to
have
stock, par $5.
p.
Business
licensee under
Business
Investment
Investment Co. is
Small
the
use
Small
Midwest
hith xS pnces finished slightly
prf ertban the prior period. Steer tinger), to
ing thp wl? Ui? /ractional.ly dur" business.
.
nonetheless
1959
in
sold 110>000 shares of C»/1Asinking fund promissory Hohon.
in nnn nnn
notes;
emlrincf -funrl
Cw^nll
First Midwest Small Dnni'MOfifi T-r*_
Business In-
nonnor
was
"jV
of
,
^
fic/i'
week
ofP
ports t0 date
rod
1 nOR
in
Arrivafs
uva"
rix
spite
amounted
to $427,568,000 and net income to
company
week
i
in
Net sales and other income °f C°Uld bri"g- about. a Iar8e .enouSh
the
are
pick-up in demand from private
and state Pension funds. There is
people of whom tions for defense will have a
outside
the marked influence on the money
and Switzerland and main-
a£
fication
are
United States. Principal manufactoring plants are located in the
United States. Subsidiaries have
manufacturing plants in Canada,
Great Britain, Germany, Brazil,
than
more
™tmentS-
long-term Governments
short-term Government securities are not inclined to be
will be tested very
t s time.
since corporations, the
Rate for Savings Banks?
.
mately 49,000
about
23,000
been
been
still in the "professional" classi¬
watched
registers, accounting and bookkeeping
machines, adding machines and electronic data proc- bave more funds to work with,
cessing systems, together with
Summit's Effect on Spending
supplies for use in its machine
uxuuucbs
x xic
products.
The cumpmiy axm xu>
company
and its
The spending policy of the
subsidiaries
subsidiaries
employ
approxi- present and future Administra-
weffeeSSsMed1M0Ughhrfdi?gthn MirXSt'l9°9rigFirsty Midwest Ts newsstand It 11 Wall Street, New
the
n^ rL^ined fualiBed to do Sesfit Minne York City. Howard Dean, Harris,
ST® FCffS X
SPthhemm^uphoafS ^
feting a mo^raTeTxpSnTn MfbVmade for.',Ad Street^ournal^ Advanee orders
Purchases.
end of
be
not
deficit in the budget so that the
1959.:
v
Treasury would have to raise new
$19,076,000 compared with $400,- money in the open market to the
T"n VAQt"mATlt" Tv"TPTYI Q 079,000 and $15,512,000, respec- tune of several billions. An in: ; ;.
crease in funds for defense purJ-J-l V CD lliiC/il 1/ I IX III .p tively, in 1958.
Giving effect to the sale of the poses of such a magnitude as
Q4-nr»Tr
sinking fund debentures, capital- would completely unbalance the
UtUvli V/ll t/X t/Ll •
ization of the company as of Federal budget would mean that
Craig-Hallum, Inc. and associates March 31, 1960 was: $40,854,000 the Government would have to
over
patched that Act of 1958, is the second
week
the
chanee
I4^al« inereafed
Mav
7% increase
the
^™e-i";s.u8ar
for
no
leds
Vietnam, Indonesia, and Norway ceeds for investment in
early in the week. Domestic buy- ing to small businesses.
out
Restore
the like neriod
over
jn
Federal
denartment
ended May J4 sale^ increased 1%
G
"
ited
same period in 1959 while the
Jan. 1 to May 21 period showed a
should
have
The
heavy movement of funds
primarily in financing "2.
projected expansion of the ?
ness
far
VG'X"
the general funds of the company
for
use
1% for
May 21 Week
x
and
I 7'
The
and the balance of the
proceeds will be used to increase
Store
Down
measure into the middle-term issues although these purchases so
.™Le^f
closely*
temnnrnrv
interLtional
j.
incurred for working capital
were
purposes,
Department store sales on a
wheat, hides, rubber and
These decreases off- country-wide basis as taken from
prices on
• n
tard;
^acific Coaff to ta
~4
Central -5
Nationwide
Ltwn
short-term
a
haven continues to grow. Not
only
the uncertain
sUuation but also the domestic picture
redeemltde' afthe^nGnnnf
j°unf 1% i&TElW*
'
seeking
r
a
on
GOVERNMENTS
DeOS. Ottered
C0^reSP°ndmg
There -was
-
Lvv3^1St01 OO#
cars
showed year-to- (June 2) an issue of $40,000,000
increases, sales of women's The National Cash Register Co.
'
'
~~~
"
apparel, indoor furniture tele- 4%% sinking fund debentures, For the first time since the final
vision sets, and floor coverings dUrl Ju?e*' 1985> at 100
week of January 1959, the nation's
the »6-10tlJhe
were down somewhat. «■ < i»i . The debentures are entitled to a banking system' last week re-'
period last year.
The total doUar volume of re_ s king: fund,.beginning June 1, ported net free reserves. For the
Higher in wholesale price this tail trade in the week ended May
x
retire 75% of period ended May 25 the weekly
week were
corn, beef, bellies, 25 was from 3% below to 1%
nS?™^ T y averaSe amounted to $21,000,000.
coffee, cottonseed oil, eggs and higher than a year ago, accord- ?
^
Whether this shift from modest
potatoes. Lower, were
flour, ing to spot estimates collected by than 4
+V
negative reserves to a moderate
wheat,
rye,
oats, hams, , lard, Dun & Bradstreet, Inc. Regional
the a+m°un!;
°f fr®e' reserves is the
sugar, cocoa, and hogs. (
estimates varied from the com- comn^v at nrires
start of a trend which will result
The Index represents the sum parable 1959 levels by the followm?75%y
the rr?e.mber banks having
total of the PH- peLpound of
percentages: Mountain +3 to
TorVel!st
Tt^
the
Si raw food stuffs and meat in +7; South Atlantic 0 to +4; East year Dnor to maturitv
.
net free reserves over a period
general use. It is not a cost-of- South Central -1 to +3; New Y tL net proc^eds f
fror
should be the answer as to how
Sg index. Its chief function is England and Middle Atlantic —2 er- * " - pro?eeds tror
to show the general trend of food
to. +2;: West South Central —3 nart to renavUpfirr^nt hlt inp™ much money market conditions
annUSpiv
nnnnrm
prices at the wholesale level.
to +1; East North" Central and of approximately $5,000,000 whWare going to ease* This is imP°rwhich
'»
loCAmnioditv Price Index
Wholesale Commodity..Price Index
Dips From Prior Week
33
market
money
industrial
organizations,
SL.
financial
and
W. otewart Jrorms
not
are
includes
Own Investment Co.
specialists
MIAMI, Fla. — E. W. Stewart &
this idea since they believe that a Co., Inc. has been formed with ofstep-u.p in defense spending will fices in the First National Bank
fl
^
toQ Jarge and the additional Building to engage in a securities
^
d mainly for the business. Officers are Edward W.
President,
William L.
kind oT defenses which will be Stewart,
of
much less expensive than would Deam, Vice-President, and Leonbe the heavy kind of hardware.
ard Osheroff, Secretary-Treasurer,
who
are
inclined to go along with
1
_
^nd
11
1 !i •
1
Jivsrf
4-
1
vx
A
ft A
1VI
Ar»
Lflnses
Treasury Bills in
,
The
1
■
m
Demand
,
demand for Treasury bills
continues to be
sizable since the amount of funds
has been and still
AH were formerly with Plymouth
Bond
&
Share
Corporation,
Stewart
was
of
Vice-Pres-
which Mr. Stewart was vice rres
ident.
,
34
Commercial and Financial Chronicle
The
(2394)
Now
Securities
of
the large number of
(Friday)
Common
Chemical Packaging Co., Inc
items reflect the expectations of the underwriter
Englehard Industries, Inc.——
not, in
are
general, to be considered
(Dillon,
firm
as
Read
West Ohio Gas Co
Common
Inc.
(C.
•
A. K. Electric Corp.
(6/6-10)
100,000 shares of common
May 4 (letter of notification)
(par one cent). Price—$3 per share. Proceeds—
For general corporate purposes. Office—231 Front St.,
Brooklyn, N. Y. Underwriter—Hilton Securities, Inc.,
580 Fifth Ave., New York, N. Y.
stock
••
June 6
7
$300,000
Inc.)
(6/13-17)
(D.
April 27 filed 42,574 shares of class A common stock (no
Cabana
Victor
H.
Co.,
$100,000
Inc.)
par), including 25,000 shares to be issued and sold by the
and 17,574 shares which are outstanding and
will be offered by the holders thereof. Price — To be
Certified Credit & Thrift
supplied by amendment. Proceeds—Principally for vari¬
ous leasehold improvements. Office—1308 Prospect Ave.,
Continental Capital
Cleveland, Ohio. Underwriters—L. F. Rothschild & Co.,
New York, and Murch & Co., Inc., Cleveland, Ohio.
Crawford Corp.
(Commonwealth
(McDonald
:
Empire Gold Mining Co.
April 12 (letter of notification) $300,000 of 6% income
notes to be offered in multiples of $100 each. Price—At
face value. Proceeds—For mining expenses. Address—
Doak
Juneau, Alaska.
Underwriter — Stauffer Investment
Service, 1206 N. W. 46th Street, Oklahoma City, Okla.
Alberta
(6/16)
May 19 filed $30,000,000 of sinking fund debentures, due
June 15, 1985, and to be unconditionally guaranteed by
Municipal Financing Corp.
Province
the
of
Alberta.
Price
—
To
be
supplied
.
Co., Inc
(Ross
Securities,
.
*•.
'
2
i.
r
■
.
10,000 shares
^;
Co.
'
60,000 warrants
.
Proceeds—To
be
(Fidelity Securities «fc Investment Co., Inc.)
(William
Co.)
shares
200,000
Co.)
&
7
"-Vr
;
-
loans
amounting
to provide
to
approximately
Elco
incurre
$1,700,000
rities of
municipalities, cities, towns and villages within
Alberta, Canada, as loan applications are appproved.
Underwriters—The First Boston Corp. and Wood, Gundy
& Co., Inc., both of New York.
•
Aid, Inc. (6/13-17)
April 28 filed 335,880 shares of
of
which
210,880
shares are
be
offered
for
the
account
of
Cohon
Elco
&
,7
(Ladenburg,
Fuller
Elco
Fuller
&
(Bids
the
holders
thereof
and
125,000 will be issued and sold by the company. Price—
'..y77'
(Myron
A.
New
York.
Lomasney & Co.)
(Westheimer
$750,000
&
Co.)
Lomasney
&
Hentz
&
Co.)
Co.)
Witco
Friendly
porate purposes. Office—Arlington, Texas. Underwriter
,
—Rauscher, Pierce & Co., Inc., Dallas.
offering has been postponed.
Note
—
This
•
Alside, Inc. (6/15)
April 23 filed 300,000 shares of common stock (no par).
Price—To be supplied by amendment.
Proceeds—To¬
gether with an additional sum of $6,000,000 to be bor¬
rowed
for institutional
lenders, will be used to provide
financing for the company's products by
consumer
consumer paper from the company's distributors
dealers. Office—1415 Waterloo Road, Akron, Ohio.
Underwriter—Reynolds & Co., Inc., New York.
Foods, Inc. (6/13-20)
230,000 shares of common stock (par
$2.50), of which 168,310 are to be offered by Bankers
Securities Corp. and 61,690 on behalf of the company.
Price—To be supplied by amendment. Proceeds—To re¬
pay indebtedness, for working capital and other corpo¬
18
purposes.
Office—933 Lee St., S. W., Atlanta, Ga.
Underwriter—Kidder, Peabody & Co. Note—The name
has been changed from Alterman-Big
Apple, Inc.
general
corporate
purposes.
Office
—
37
E.
Street, New York, N. Y. Underwriter—Palombi
rities Co., New York, N. Y.
18th
Secu¬
American Bowla-Bowla Corp.
April 15 filed 100,000 shares of common stock and war¬
rants for the purchase of an additional 50,000
shares,
The company proposes to offer these securities for
pub¬
lic sale in units consisting of two shares of stock
25
cents)
and
ceeds—To
price of
and
$1,125,000
C.
Morton
&
Co.,
shares
Lite-Vent
&
Morgan
McGowen Glass Fibers
$1,200,000
Co.)
Co.)
7 (Hardy
National
Lawnservice
(Fund
■
7
Co,, and Filor,.Bullard &
&
:
-
P.
one
cover
two
fixtures
warrant.
an
initial
Price—$6.25
installment
additional bowling
thereon;
and
the
(par
unit. Pro¬
per
on
the
purchase
centers; for furniture
balance
to
be
added
to
working capital and be available for general corporate
purposes. Office—400 38th St., Union City, N. J. Under¬
writer—Hill, Thompson & Co., Inc., New York.
Continued
on
page
36
Common
Ott Chemical
(Offering
to
First
Common
Pioneer
EDT)
Debentures
Debentures
H.
M
Corp.; Glore, Forgan & Co.
& Hutzler)
$35,000,000
J.
Co.
Inc.
&
Corp.)
$300,000
Co.)
Foods,
Penn
&
■
150,000
Co.)
Co.,
Telecomputing Corp.
(Dean Witter & Co.)
Inc.)
&
Common
Co.)
shares
335,880
Common
Insurance
—Capital
Co
&
Co.,
$3,570,000
———Common
Inc.
and
Mackay
Co.)
&
•
Big Laurel, Inc
(Pearson,
(George,
& Co., Inc. and
400,000 shares
Mackay
O'Neill
&
Co.,
Inc.)
——Common
"
Common
Co.)
&
7
Enterprises, Inc._
Processes,
..Common
$2,010,000
Common
Inc
Investing
Corp.)
$150,000
Securities
Corp.)
$262,750
Common
(Havener
Dillon,
; ■
—Preferred
Murphy
Bruce National
Union
Securities
&
Co.),
Inc.—Com.
298,204
shares
Compressed Concrete Construction Corp.—Common
(Capital
100,000 shares
Co.)
?.■
42,574 shares
Inc.)
Coca-Cola Bottling Co. of New York,
shares
—
Co.,
Chemtree Corp.
:
Common
$300,000
&
—
Murphy
Chemo-Vive
shares
112,500
Murch
Inc..
Life
Laurel, Inc
(Pearson,
(Eastman
&
Inc.—Common
(Offering to stockholders—no underwriting)
Common
Products, Inc
Hammill
Inc.)
—
Alterman
7
4
•
Common
and
Witter
(General
Securities
Krleger
&
Common
Speed-Way Food Stores Inc._^
(J.
and
Bros,
Precision
(8hearson,
Rothschild
,7
Bonds
Forgan
Co.,
r
.....Common
$300,000
7 7 "
7
400,000 shares
Manufacturing Co
Simmonds
Aid,
I
stockholders—underwritten by
Byllesby & Co., Inc.) $450,000
(Hancock
&
Paine,
by
shares
(Monday)
$45,000,000
Co.—
(Glore,
F.
Big
Metals, Inc.
Reliance
>
.
(Kidder, Peabody & Co.) 230,000 shares
shares
Telephone Co.-
Boston
$500,000
100,000
Corp.
13
128,329 shares
to
Salomon
Inc.)
stockholders—underwritten
(Dean
Pennsylvania Co.
(The
.Co.;
Airport Parking Co
Common
a.m.
&
.
1
$300,000
underwriting) 420,945
11:30
Bernheimar
Class B
...
American
Bell
shares
400,000
(Offering to stockholders—underwritten by Schweickart &
7.'
700,000 shares
7 ' ■
(L.
- $300,000
North Central Co
(Bids
Smyth)
Webber, Jackson & Curtis)
June
Corp
(Equitable Securities Corp.)
Northwestern
*
$360,000
'Waltham Precision Instrument
Co.,
shares
Corp.)
Inc.)
7
7 -
/
.7.7777'1.>7.7^;7,■ ^77:
Electronics Corp._^
7"7 (Offering
Vulcatron
$300,000
National Old Line Life Insurance Co
(No
: ;7
/"•/'v-. •••.■ (P. de Rensis
—Debentures
Planning
7:
Common
300,000
Securities
EDT h,$25,000,000 7
a.m.
(First Securities Corp.)
(D.
*
Common
Medallion Pictures Corp
(Hancock
11
Bonds
Laboratory For Electronics, Inc;„—-—Common
*
'7'...7
$520,000
—
&
-7.7.;
.7;-
American International Aluminum Corp._Common
.
Common
(Simmons, Rubin & Co.. Inc.)
(Barhe
,'7-
;
June .10 (Friday)
'
-
Corp
Mattel, Inc.
shares '
250,000
$180,000
Co.)
&
Curtis)
&
i
Industries, Inc
(Peter
^ • •••;>...
'
7
Units
$376,000
Liberty Records, Inc.——:i.......Common
Weedon
7
.
Companies, Inc.—Com,.
(Hilton Securities, Inc.)
Jackson
Packaging Corp.-————Common
Foto-Video
Howe Plastics & Chemical
(Crowell,
National
———Class A
—
Inc.)
7
•
Co.2_—---Debentures
(Bids
Rogers Co. and Hilton Securities, Inc.) $2,000,000-
(B.
,
Capital
Baltimore Gas & Electric Co
-Debentures
Hampshire Gardens Associates-
•
120,000 shares
Brothers)
$8,000,000
•.
-
Realty Corp._
Great American Realty Corp.—
(No underwriting) lio,000
Electronic
Corp. (6/27- 7/1)
May 19 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
For
underwriting)
$6,000,000
(Thursday)
filed
rate
Ameco
(Louis L.
Common
.■•
Alterman
March
(No
American
pur¬
chasing
and
Great
$2,520,000
Corp.)
Brothers)
•
June 9
■
.
Inc
Webber,
Chemical
•" +j:
7"
:
•.
debentures and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
stock. Price—$108 per unit. Proceeds—For general cor¬
Space
(Smith, Barney & Co., Inc. and Goldman, Sachs & Co.)
7
"Shares
New
Allied Bowling Centers, Inc.
29 filed $750,000 of sinking fund
shares
Common
^
Manufacturing Co., Inc.——Common
(Paine,
shares
150,000
Lane,
(Lehman
Vector
Pfd.
Corp
First National Realty & Construction Corp.—War..
(H. Hentz & Co.) 150,000
v7
v
Dec.
410,206
Co.)
$600,000
(par 10 cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office—48-14 33rd St., Long
Island City, N. Y. Underwriter — Morris Cohon & Co.,
Frost
McDonald &
United Financial Corp. of California
stock
York, N. Y.
and
(Lehman
$295,000
150.000
Co.)
&
'
-
—Common
United Financial Corp. of California—Debentures
First National Realty & Construction Corp.—Com.
(H.
7
$1,500,000
Co.)
Newspapers, Inc
(Johnson,
*
:
Common
First National Realty & Construction
Hentz
(Dempsey-Tegeler &
(Kulin, Loeb & Co.
Common
(H.
if Alderson Research Laboratories, Inc. (6/20-24)
May 26 (letter of notification) 100,000 shares of common
;
.
$4,665,000
EDT)
noon
Beryllium Co
Savannah
Common
Figurette, Ltd.
A.
:
Co.) $100,000
Corp._^—„_
(Myron
—_Bonds
$12,000,000 7
EDT)
a.m.
(Wednesday)
7
Brush
Common
(Courts &
Steel
and
1 7
240,000
Bowers Battery .& Spark Plug Co.-.—.Common
$1,000,000
Co.)
To be supplied by
amendment. Proceeds—For additional
working capital. Office—7045 North Western Ave., Chi¬
cago, 111. Underwriter—Dean Witter & Co., Chicago and
11:30
(12
82,065
Co.)
Esquire Radio & Electronics, Inc.
Federal
8
Debentures
Fuller &
D.
Bear, Stearns & Co.
shares ' >'
Co.,
&
Bros.)
Atlantic Coast Line RR—-——Equip. Trust Ctfs.
shares
Corp.
(S.
^
Common
87,809
Co.)
&
Equitable Leasing Corp.
stock (par $1),
outstanding
and will
common
Thalmann
Warrants
D.
and
Common
Washington Gas Light Co._
June
Corp.
(S.
-Debentures
Sutro
$300,000
Co.)
__—
(S/^D.
7' v'77-
.
——Common
Corp>x-
working capital and to the purchase of secu¬
.v
Corp.
.
150,000 shares
Inc
(Morris
into Canadian funds, to the reduction of short-term ban
.7.
& Co., Bear, Stearns & Co.
Sutro Bros.) $6,000,000
./V~, •• 75
-
Teleregister
7
__—-Capital
Staats
R.
$300,000.
Inc.)
Thalmann
(Ladenburg,
...
-Common
Dymo Industries, Inc
Dynamic Films,
;
$100,000
Chemicals, Inc.—---—
by
applied, after conversion
&
.•
"v
Co., Inc.——^Common
7 (Merritt, Vickers,
.
amendment.
Webster Securities Corp.; White, Weld
and Halsey, Stuart & Co., Inc.)" 7
&
(Stone
v
•"
-
.
Transmission Co.——Warrants
Teleregister Corp.
:
——Bonds
:
&
7'
-
_______-Common
Inc
(Allen
'•
Securities Corp.;-White, Weld &
Stuart
Co., Inc.)
$60,000,000 "
Webster
Pan American Envelope
.
"
Dubois
V
<
'
$300,000
(Fidelity Securities & Investment Co., Inc.)
Associates,
1—Common
Jackson & Curtis)
Co.--,—Bonds
Transmission
Midwestern Gas
.
Drug
'
—.i——-—Common
Inc.)
Drug Associates, Inc._
.
and
Co.
——
Paine,' Webber,
$10,000,000
v..
;
Halsey,
and
-Co.
—..Common
Pharmacal
:
;
.
Gas
&
(Stcne
$5,050,000
,
Alaska
;
Midwestern
Co., Inc.)- 200,000 shares
&
Common
&
•
$3,290,000
Co.)
&
,■
-
.
shares
168,833
Co.)
&
Inc.—
and
Co.
&
v
Corp.__^4.--—-----Stock
Securities Corp.)
Becker
G.
Growth Capital,
•
Corp.——7——-———Capital ;
(McDonnell
(A.
/
.
$300,000
(Mandell & Kahn, Inc.)
1
7
~
——Common
Pools, Inc
company
Kidder
M.
;
,.
Equip. Trust Ctfs.
$2,550,000
EDT)
p.m.
....Common
Corp
&
$1,650,000
Quincy RR.
:,7.
;
..
(1:00
A.
Stereophonic
Class A
Inc.)
Co.,
&
Food Fair Stores, Inc.——
(Eastman Dillon, Union Securities
I
-
■.
■
Common
Securities,
(Hilton
$753,340
(Tuesday)
(Monday)
A. K. Electric Corp..
Kletz
G.
Chicago, Burlington &
;
<
American
Airport Parking Co. of America
$800,000
(Stanley Heller & Co.)
;
,
June 7
—Class A
Viewlex, Inc.
....
(Michael
,
$2,000,000
Co.)
Towbin
Unterberg,
E.
Debentures
underwriting)
System, Inc.—
Yale Express
—---
-
-——Common
_
stockholders—No
to
(Offering
offering dates.
FXR
—Common
Inc.) $700,000
Bruce & Co.,
(Richard
& Co.)
Freres
Co., Inc. and Lazard
400,000 shares
&
$300,000
Inc.)
United States Boat Corp.-—
Jeffrey-Robert
Securities Corp. and
Corp.) $287,500
(Mainland
—Common
—
Hindley & Co.,
(Martinclll,
increasingly difficult to predict offering dates
a high degree of accuracy. The dates shown
in the index and in the accompanying detailed
with
$720,000
& Co,)
Inc
Tri-Point Plastics,
June 3
Common
Florida, Inc
Morgan
(Peter
issues
awaiting processing by the SEC, it is becoming
but
REVISED
ITEMS
•
Thermal Industries of
CALENDAR
ISSUE
NEW
NOTE—Because
* IN DICATES AD DITION S
SINCE PREVIOUS ISSUE
Registration
in
Thursday, June 2, 1960
.
.
.
Accumulation
Corp.)
$300,000
Deluxe Aluminum
Products, Inc
(R.
A.
Holman
Deluxe Aluminum
(R.
A.
&
Co.,
Inc.)
Products, Inc
Holman
&
Co.,
Inc./
Common
$350,000
-Debentures
$330,000
,t
,"
npvelopment Credit Corp. of Maryland.,.Common
^
underwriting)
(No
Federated Electronics, Inc
$2,200,000
(J.
Germeshausen & Grier, Inc.—Common
TTrteerton,
Peabody
(Kidder,
&
Co.)
120,000
B.
General Drive-in
shares
(Paine,
Builders, Inc..
Florida
*1Ui
&
(Jaffee
Common
Co.)
80,000
———Common
&
Magic Boats, Inc
Glass
Holman & Co., Inc.)
(R. A.
'
;
(Burnham & Co.)
Stearns
(Bear,
&
Co.)
;
Manufacturing Co., Inc.!
Lang ley & Co.
(W. C.
Service
(Pearson,
(Laird &■ Co. Corp.)
..
$2,336,960
(F.
//';.•'<■'
TY M. Kirscli & Co. and Robert
Co., Inc.;
Martin
•
•
Associates,
Inc.)
-4
A.*
...
—
O'Neill
(George,
&
Inc.)
.Common
$825,000
'
Higginson
Security. Industrial
Corp.)
$500,000
;
Loan Association
(Lee Higginson
Corp.)
&
Co.,
Inc.)
(Offering
stockholders—no
to
..
underwriting)
Sloss
&
(Merritt,
Co.,
Inc.)
Inc.)
Securities
(Hallowell,
Sulzberger,
Co.;
and
L.
'
underwriting).'-$1,412,599
;- Y
&
-
-Cuipv:
J—
h.
..Common v
(Reynolds & Co.,
Inc.)
shares
300,000
<
Investment
Co.)
&
Smith,
Co.
(Harrison
&
|
Homes,
(American
Sire Plan of
60,000
Inc
Portfolios,
."
v
Plan
Portfolios,
Electronics,
States
V.
Uranium Reduction
Allyn
&
Inc.)
Co.,
Gundy
Co.,
Corp.
Inc.)
Wood,
and
YY-,/Y;:;V (Goldman, Sachs
Savannah Electric
& Power Co
(Bids
to
Debentures*
;
K
(Bids
\
be
invited)
be
&
June
20.
Co., Inc.)
Inc.—
&
Co.,
(Monday)
and
Scherck,
and
Co.
Co. and
,
Polycast Corp.
and
(Hornblowcr
<
&
Lee &
L.
Inc.)
Globus,
..Common
Inc.)
(G.
H.
Walker
&
shares
.j—.....Common
and
Co.
1,000,000
Beil
&
Hough,
(P.
(Diran,
Norman
Corp.
and
V.
&
Co.,
Inc.;
Wlckett
S.
&
Co..
Inc.)
$300,000
A.
Holman
&
Co.,
(Laird, Bissell
&
Patterson
&
J.
&
•"
Faultless
v
Stearns
&
Sons
'
Sudler & Co.)
$300,000
Inc.)
$290,000
Stone
Brawley,
Cathers
& Co.)
.....Common
&
Co.)
,:
4
Units
Inc.
and
Globus,
Inc.)
$616,000
Light Co
Bonds
$5,000,000
(Tuesday)
(Bids
Debentures
be
to
invited)
$38,101,600
,
Southern Counties Gas Co
(Bids
to
be
Bonds
invited)
(Monday)
August 1
$1,500,000
(Ross,
C.
&
Lyon
Harold
$2,000,000
$500,000
Inc.;
Co.,
Shore &
Co.
Units
Globus,
Reich & Co.;
Hamilton, Magnus
Inc.;
and Godfrey,
Co.) $800,000
Co.,
Inc.)
Southwestern Bell Telephone Co.—
$501,000
(11
Debentures
Michigan
Common
Debentures
$100,000,000
(Bids
to
Debentures
$35,000,000
invited)
be
Southern California Edison Co...
Debentures
———
Bonds
(Bids to be invited) $60,000,000
Elauner & Co., Inc.)
and Milton D.
EDT)
Bell Telephone Co
50,709 shares
Crouter & Bodine)
a.m.
(Tuesday)
August 23
$50,000,000
Brothers)
(Tuesday)
August 9
Common
&
Magnus
Blauner & Co., Inc.)
September 13
&
Common
of
shares
unknown
Common
——
Treat
& Co.,
Inc.)
(Myron
.
A.
175,000 shares
& Co.)
(Michael G.
j
Bonds
(Bids to be invited) $50,000,000
>
(Tuesday)
September 27
(11:00 a.
Bonds
Y. Time) $12,000,000
m. N.
$650,000
Common
—
Kletz &
Bonds
(Tuesday)
Indianapolis Power & Light Co
Southeastern Co.) 145,000 shares
Industries, Inc
Win-Chek
;
be Invited) $25,000,000
Public Service Electric & Gas Co
Common
Lomasney
(Hardy & Hardy and First
-
to
September 20
$410,000
number
Co.)
(Bids
,
Common
Corp.—
underwriting)
(Tuesday)
Virginia Electric & Power Co
,
Alberta
(Tuesday)
Gas Trunk
(No
—Bonds
Line Co
underwriting)
$65,000,000
Class A
October
Co.) $450,000
18
(Tuesday)
(Tuesday)
(Bids
Bausch & Lomb Inc
.Debentures
(Offering to stockholders—underwritten by Stone &
Webster
250,000
shares
Bonds
Louisville Gas & Electric Co.
Securities Corp.)
November 3
to
be
$16,000,000
Invited)
(Thursday)
$6,657,900
Bonds
Georgia Power Co
—Bonds
Tampa Electric Co
$6,000,000
Caster Corp
(Hayden,
/
216,645 shares
Consumers Power Co
Common
Inc.)
Triumph Storecrafters Corp._1
(Bids
Co.—...—Debentures
and
.Bonds
$10,000,000
Capital
Co.)
Co.,
&
$1,500,000
Co.)
Trans Tech Systems, Inc...
Common
^ingtonLawrence
Manufacturing
,
—Common
Inc.
June 28
Common
Co.,
$450,000
(Tuesday)
July 19
July 26
.
T.
Inc.)
invited)
New Jersey Power &
$1,250,000
Wohlstetter)
&
Ultrasonics
(Amos
$255,000
Finance Corp
(J.
yrus
Stelma,
.
Inc.)
Meeds)
Crow
Common
BSC Electronics
Corp...
Bairmount
Common
(Monday)
Lyon
Investing
Cortland
shares
(Thursday)
October 4
Custom Craft Marine
Co., Inc
(R.
(Ross,
Common
Michael
Inc.)..
Common
50,000
Astrotherm Corp.
35,000
shares
Columbia Technical Corp
Inc.)
Associates
July 18
Common
Development Corp
Hough, Inc.) $1,600,000
Bevis Shell
Homes,, Inc
Co.,
Common
.&
Debentures
Co.,
&
—
(No
Saucon
Debentures
and Beil &
Co.)
70,000 shares
S., Inc
Seskis
Co., Inc.
?
o
(G. H. Walker
& Co.
$10,000,000
Bonds
Lee & Co., inc; and Milton D.
:
20,000 shares
'Powertron
Common
Bevis Shell
Homes, Inc
Co.)
$400,000
'*
200,000
&
(Offering to stockholders—underwritten by Dean Witter
$700,000
Polycast Corp.
(M. L.
Weeks)
Units
$6,325,000
•'
Inc..——
Amos C.
Treat
shares
(Tuesday)
July 14
Varian
$17,000,000
EDT)
Bear,
Bonds
$5,000,000
& Plastics Corp
162,000
'
Co...—
and Townsend,
(Drexel & Co.
.Debentures
..(Morris Cohon & Co.) $300,000
-
Richter
V ,"
Globus,
and
Inc.
noon
Inc.)
Debentures
&
(Bids to be
Warrants
(Lehman
;
•
American Rubber
July 12
...Common
.1
Inc.
Inc.
Co.,
Co.,
Common
Holman
A.
$300,000
*•-'
Co.,
Common
&
Central Illinois Electric & Gas Co
Units
_
Navigation Computer Corp
Alderson Research
Laboratories, Inc
Inc
Blyth
$150,000
•
/
&
(Pistell,
Common
—
Hamilton,
(Godfrey,
$3,000,000
Invited)
by
shares
Corp
-
Montgomery Ward Credit Corp
& Power Co
to
Common
16,000
Sav-A-Stop, Inc.
Common
100,000 shares
Lee Motor Products, Inc
■:
(M
Savannah Electric
Co.,
&
150,000-shares
Co.)
Co.)
(Walter R. Blaha & Co., Inc.) $300,000
Common
(Finkle,
..Common
&
&
&
shares
Rajac Self-Service, Inc
Debentures
(Amos
,
$30,000,000
Interstate Finance Corp
Fenner
Gardner)
stockholders—underwritten
Brothers
(R.
Common
Common
,
Boston
&
to
shares
Alberta Municipal
Financing Corp
Pierce,
&
Kings Electronics Co., Inc
Common
200,000
Lynch,
Reinholdt
(Bertner Bros.)
Pearson
Co..
of America
(Purvis &
(Thursday)
(The First
and
Consolidated Research & Mfg. Corp._„
Lamtex Industries, Inc
June 16
Common
Merrill
Inc.;
Pauley Petroleum Inc.
& Co.)
Illinois Beef, L. & W.
.
Co
Brothers;
Glass
(Lehman
Preferred
I c Inc.
$600,000
Co.—
$24,000,000
(Monday)
Brockway
60,000 shares
(Myron A. Lomasney & Co.)
(Bache
shares
Common
Stabell)
Co.)
Common
Gas
Utilities
Hotel Corp.
v;
Preferred
4,500
^Debentures
Securities &
(Friday)
Gas
July 11
Debentures
Corp) $8,300,000
Gulf-Tex Development,
^
Inc
(Donald
C.
Inc.)
Union
(11:00 a.m. EDT)
Gulf
$300,000
$225,000
$5,000,000
Putnam
:
.
Lyon &
Debentures
Inc.)
EDT)
!
New Britain Gas Light Co
Common
Inc.)
Normandy Isle, Inc
(Sire
Tucker, Anthony &
750,000 shares
Corp.
-
Sire Plan of
(A.
Securities,
Normandy Isle, Inc.
Plan
and
,V; (Ross, Lyon & Co., Inc. and Globus, Inc.)
shares
—
Diversified
(Sire
Thurow
Corp.)
Sullivan
Goelet Corp.
/'*.
(Ross, Lyon &
.
Preferred
Boston
a.m.
Offering to stockholders—243,600
Common
(Bids
IWionowall
Laclede
(Bache & Co.) 400,000 shares
(Ross,
;
$544,810
$5,000,000
Bonds
Smith.
Goelet Corp.
Common
Co.)
Harnischfeger Corp
First
July 8
Lazard
-
100,000 shares
General Atronics Corp....
(The
Co.;
Corp
International,
Goelet
$1,600,000
Inc.)
•"
'•:/
..Common
Fenner
EDT)
Mississippi River Fuel Corp..—
(Lehman
v.,150,000 shares
'''
,
Pierce,
&
Battery Corp.——
(Bosworth,
'
American Frontier Life Insurance Co.—.Capital
Corp
a.m.
(11:00
-
Common
(Willis E. Burnside &
:
Gem
'
(Merrill Lynch,
Ripley
Electrada Corp
:
Securities
$20,000,000
(Palombi Securities Co.) $300,000
Cellomatic
;
.Capital
(Wednesday)
(Union
Co.)
Bonds
Harriman
(Darius, Inc.)
v.:;..;
.
$3,500,000
Preferred
(11:00
Notes
&
Atlas Bowling Centers, Inc..
•
$50,000,000
Bonds
a.m.EDT)
shares
(Snow, Sweeney & Co., Inc. and A. C. Allyn & Co., Inc.)
50,000 shares
:
Garrett
150,000
(Monday)
Electronic
1
*
$510,000
Co......
Alside, Inc.
Co.)
Weld
C. F. C. Funding Inc
to J stockholders—No
June: 15
&
(Eastman Dillon,
Day)
Arkansas Western
Debentures
EDT)
Bonds
$50,000,000
EDT)
ra.
(William R. Staats
Ameco
'
Co.)
Ladenburg,
(Thursday)
,
of New York. Yi'ii-Bonds
a.m.
Long Island Trust
(Offering
Co.
11
White,
(Lehman Brothers)
(Tuesday) -V;.:
(Bids
July 7
Smith, Barney & Co.) $10,000,000
(Keller
.
Weld
Northwest Natural Gas Co
Common
&
by
shares
$300,000
.i*
and
First Boston
$300,000
Kirkland
217,278
Co.)
(Offering to stockholders—underwritten by The
(Hallowell, Sulzberger, Jenks, Kirkland & Co.) $500,000
Consolidated Edison
Inc.)
(Friday)
June 27
Inc
$500,000
.Common
&
a.
10:30
Common
White,
Loeb &
„
.
Jenks,
Co.)
Sierra Pacific Power Co
(Wednesday)
June 24
Common ~
Inc.—
Whitmoyer Laboratories,
June 14
(11:00
$300,000
Miles Laboratories, Inc
$525,000
Co.)
Laboratories,
&
(Wednesday)
shares
Common
Vickers,
Schrijver
stockholders—Underwritten
(Offering
Common
(Jacey
&
Co.
$1,250,000
Inc
Whitmoyer
Loeb
(Kuhn,
.
:■■■:
$1,709,680
Warren Industries, Inc
Westmore,
>'
Common
Swimming Pool Development Co., Inc
(Marron,
-[■
-r-
50,000
Harvey Aluminum, Inc.—
$900,000
••
to
July 6
Common
Co.,
Inc
Co.
R.
::
Inc.)
(City of) Norway..
June 22
•
and
Hlinois Bell Telephone Co
Common
.
.
Common
(A. G.) Spalding & Bros. Inc
Common
(Tuesday)
Freres &
Common
Sloss
&
50,000 shares
Sierra Electric Corp
(Marron,
and
(James),
(Kuhn,
"V*.
'
;
(Offering
Thalmann
Inc.
Co.
Eberstadt
June 21
Security Industrial Loan Association—Debentures V
(Lee
&
$300,000
——
Co.;
Co.
&
Gulf Power Co
Talcott
(Oslo
Safticraft Corp.
(James),
Eberstadt
(F.
Common
Cohon
$300,000
Corp
,
Republic Graphics Inc.——.-.Common
(Arrin &
(Morris
Gulf Power Co
Talcott
and Courts & Co.) 240,000 shares
660,000 shares
Itemco, Inc
Common
&
140,000 shares
Class A
(Reynolds & Co.)
Common
Co.)
Associates)
Murphy
Inc.)
Co.,
Namm-Loeser's Inc.
Co.,
Maher
Instrument
——.Common
Broadcasting & Development Corp....Com,
Reeves
R.
&
$175,000
Inc._____
(John
Obear-Nester Glass Co
.
Common
(Merrill Lynch, Pierce, Fenner & Smith, Inc.) 210,045 shares
&
Common
Kletz
G.
Futterman Corp.
Debentures
Corp.)
Stern &
Sullivan
Sea-Highways,
-
Common
$192,500
Welders, Inc.—...
(Bosworth,
Common
to
Oxford
(Michael
(Granbery, Marache & Co.) 100,000 shares
OK Rubber
,
stockholders—underwritten by Shearson, Hammill
Co. and Piper, Jaffray & Hopwood) 561,500 shares
&
H.
Co
Electronics, Inc
Common
Corp.)
Movielab Film Laboratories, Inc
-
Arco
90,000 shares
Inc
Philadelphia
(Edward
Common
shares
Midwest Technical Development Corp
/Offering
Co., Inc.)
(Tuesday)
Sterilizer
(Glore, Forgan & Co. and Fulton, Reid & Co., Inc.) 150,000 shs.
shares
Common
&
5
American
Martin-Parry Marine Corp..
shares
212,500
180,000
Petrochemicals, Inc...
Common
200.000
Curtis)
Philadelphia
(First
$51,000
Vitamin Products, Inc
Hudson
Kenrich
-——-Debentures
Henderson's Portion Pak, Inc
■
&
Petrochemicals,
Common
July
$300,000
Common
Jackson
Fennekohl
(First
Holman & Co., Inc.) 68,000 shares
A.
(R.
Kenrich
$10,000,000
Boats, Inc
Magic
niflss
Inc.)
Co.,
Inc.)
Corp
Webber,
(B.
(Blair
.Common
Associates,
General Sales Corp
shares
Franklin Corp.
Coburn
be invited)
Corp
%
—
(No underwriting)
(Bids
to
be
invited i
$12.000 000
$25,000,000
December 6
(Friday)
July 1
Dalto
to
——
134,739 shares
-Common
Northern
(Tuesday)
States Power
Co.
(Bids to be invited)
(Minn.)
$35,000,000
Bonds
RTTTiTtcTvtuv
36
American
persons
in exchange
Price—$1 per share.
Capital Life Insurance
Co.
American Frontier Life
Washington,
15th St., N. W.,
(6/15)
—
Investment Corp.
(2,000) known as In¬
representing $900 of bonds
and 783 shares of stock. Price—$1,800 per unit. Proceeds
—To be used principally to originate mortgage loans and
carry them until market conditions are favorable for
disposition. Office — 210 Center St., Little Rock, Ark.
Certificates, each
American Penn Life Insurance
filed registration of
30
Stock Option Plan. Price—$28
To increase capital and surplus.
15th St., Philadelphia, Pa. Underwriter—
Agent's
the
company's
per
share. Proceeds
Office—203 S.
—
None.
(6/20-24)
American Rubber & Plastics Corp.
May 11 filed 200,000 shares of common stock. Price —
To be supplied
by amendment. Proceeds—To selling
stockholders. Office — La Porte, Ind.
Underwriter —
Hornblower & Weeks, New York City.
1
Lawrence Seaway
American & St.
Land Co.
of which
350,000 shares are to be publicly offered. Price—$3 per
share. Proceeds—To pay off mortgages, develop and im¬
prove
properties, and acquire additional real estate.
shares of common stock,
Jan. 27 filed 538,000
Office—60
Gabriel Co., Inc., New York
A. J.
Underwriter—
St., New York City.
42nd
E.
City.
American
Security Corp.
March 28 filed 100.000 shares of capital stock
The
is
company
affiliate of
an
(par $2).
&
American Security
by reason of the fact that each of their stock¬
holders owns the same number of outstanding shares of
Trust Co.
of
of
capital stock of the Trust Company in units
It is proposed to offer the 100,000 shares
American Security stock and a like number of shares
each entity.
the $10 par
of
share of stock of each
one
issuer; and the units are
debentures,
of 6% subordinate
and common * shares initially
warrants. The holders of outstand¬
ing preferred stock will be entitled to purchase the new
preferred at the rate of one new share for each ten
shares held.
Common stockholders will be entitled to
purchase the additional common shares at the rate of
one new share for each ten shares held.
The record date
is to be the effective date of the registration statements.
Office—1900 West Slauson Ave., Los Angeles, Calif.
Price — $55 per unit. * Proceeds —
will use its proceeds in part to repay
indebtedness incurred incident to the purchase
3:30
p.m.
EDT.
American Security
current
non-banking assets of The City Bank of Wash¬
of the
ington, with the balance added to
working capital for
general corporate purposes.
Office—734 15th Street,
W., Washington, D. C. Underwriters—Alex Brown &
N.
Folger,
Md.;
Baltimore,
Sons,
Nolan,
Fleming-W.
B.
Co., Inc. and Johnston Lemon & Co., Washing¬
ton, D. C.; and Kidder, Peabody & Co., New York.
Hibbs &
•
American
Stereophonic Corp.
(6/6-10)
April 11 (letter of notification) 50,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—
For general corporate purposes. Office—17 W. 60th St.,
New York, N. Y. Underwriter—D. H. Victor & Co., Inc.,
New York, N. Y.
American Sterilizer Co.
(7/5-8)
**
~
*
shares of common stock (par
$3.33%). Price—To be supplied by amendment. Proceeds
—Of the net proceeds from
the sale, approximately
$600,000 will be available to AMSCO Laboratories, Inc.,
a wholly-owned subsidiary, as an additional advance for
the completion of a new manufacturing plant. The bal¬
filed
20
May
150,000
if Bahams Caribbean Corp. Ltd.
May 25 filed 4,500 shares of common stock, to be offered
for sale at $5 per share, and 600 units of 6% promissory
expire
June 14 at 3:30 p.m.
on
—
•
Brown & Sons (jointly). BidsExpected to be received on June 9 up to 11:00 a.m. EDT.
Information Meeting—Scheduled for June 6 at 3:00 p.m.
^ Basic Inc.
1 * ■
May 26 filed 123,808 outstanding „shares of -common
stock, of which 81,161 shares are institutionally held.
All shares result from conversion of convertible prefer¬
rent market
Corp.
offering.
Proceeds — To selling stockholders.
Hanna Building, Cleveland, Ohio, Under¬
writer—The First Boston Corp., New York.
Office—845
Lomb Inc.
(6/28-7/13)
$6,657,900 of convertible subordinated de¬
bentures due 1980. It is proposed that these debentures
will be offered for subscription by common stockholders
at the rate of $100 principal amount of debentures for
each 13 common shares held. Price—To be supplied by
amendment. Proceeds—About $5,000,000 will be used to
construct new facilities in Rochester and the balance
will be used for working capital and other corporate
purposes.
Office — 63 St. Paul Street, Rochester, N. Y.
Underwriter—Stone & Webster Securities Corp., New
The
York.
stock
prospective member-stockholders. Price—At
par
($100 per share). Proceeds—For working capital.
Office
5030 Berthold, St. Louis, Mo.
Underwriter —
None.
; ."
1
or
—
..
Inc.
May 25 filed 75,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—To retire $100,000 of short-term bank loans, to provide
if Associated Testing Laboratories,
equipment for plants at Wayne,
additional facilities and
J., and Winter Park, Fla., and the balance will be
added to working capital.
Office—Clinton Road, Cald¬
N.
well, N. J. Underwriter—Drexel & Co., New York and
Philadelphia.
r
•
Astrotherm Corp.
(7/18-22)
of 8% subordinated
(6/20-24)
Inc.
:
filed
stock, to be offered for
mon
public sale in units (200,-
purchase of two additional units of one common share
one $8 debenture at $9.50 per unit. Proceeds—$2,OOOjOOO will, be used to? increase the company's holdings
of mortgages placed on the shell homes jt sells; and $1,-
and
of mortgages
and the bal¬
Office—Tampa,
600,000 to be used to increase its holding
will be placed in escrow for that purpose;
for
ance
purposes./
corporate
general
Underwriters—G. H. Walker & Co., New York
Fla.
Beil
and
.
holders
30
000), at $15.50 per unit, each unit to consist of five com¬
mon shares, one $8 par debenture, and warrants for the
pected sometime in August.
Louis
Homes,
$1,600,000 of 9% subordinated sinking
debentures due 1985 and 1,000,000 shares of com¬
fund
stock. Price—
For general
corporate ♦ purposes and working capital.. Off ice—11924
W. Washington Blvd., Los Angeles, Calif. Underwriter—
Shearson, Hammill & Co., New York. Offering — Ex¬
(letter of notification) 3,000 shares of common
to be offered for subscription by member-stock¬
Shell
Bevis
•
March
—
May 23
&
Bausch
May 19 filed
r.
if Associated Grocers' Co. of St.
placed in 1958. Price—Related to the cur¬
price on the American Stock Exchange at
of
time
—
Arnoux
shares
ence
of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—To¬
gether with $1,500,000 to be received from a contem¬
plated private placement of debentures, will be used
to retire some $1,000,000 of term bank notes and to de¬
fray all or a portion of the cost of the company's antici¬
pated 1960 program of property additions and improve¬
ments.
Office
28 East Center St., Fayetteville, Ark.
Underwriters—Snow, Sweeney & Co. Incorporated, New
York, and A. C. Allyn & Co., Inc., Chicago, 111. t /
May 23 filed 133,000 shares of common
To be supplied by amendment. Proceeds
''j
edt.
50,000 shares
13 filed
& Co.; Harriman Ripley & Co.
(jointly); Kuhn, Loeb
(6/27-7/1)
Co.
Gas
Western
Arkansas
including proposed construction
Incorporated and Alex
York.
May
.
expenditures. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co. and The First Boston Corp,
both of New
Corp. and Blyth & Co., Inc.,
corporate purposes,
eral
(EDST). Price—$36.50
Phoenix, Ariz. Underwriters
3rd Avenue,
Boston
Underwriter—None.
Electric Co. (6/9)
May 23 filed $25,000,000 of first refunding mortgage
sinking fund bonds, series due 1980. Proceeds—For gen¬
share. Proceeds—For construction purposes and pay¬
ment of loans incurred for such purposes. Office—501
South
Proceeds —To
Baltimore Gas &
•
per
First
$212.50.
develop a 100 acre tract of land located on Grand Ba¬
hama Island in the Bahamas. Office—5008 Dodge Street
April 22 filed 333,400 shares of common stock (par $5),
being offered to holders of the company's currently out¬
standing common stock at the rate of one new share
for each 10 shares held of record May 24,1960 with rights
to
offered for sale at
notes, to be
Public Service Co.
.
being offered for subscription by stockholders of each
issuer of record May 25 at the rate of one new share for
each five shares held with rights to expire on June 14
at
chell Jr. Co.,
shares
preferred
the
Arizona
Co. (6/13-17)
127,500 shares of capital
stock (par $10) to be offered for subscription by stock¬
holders of record on April 28, 1960 with rights to ex¬
pire 30 days from offering date. Subscription rate on
105,000 shares of the stock will be three additional shares
for each one share held.
Of the remaining 22,500 shares
the offering will be on the basis of nine shares for each
14 shares held, and all unsold shares of this block will
be offered under warrants granted in accordance with
•
Farms Co.
(convertible), 44,278 sharesof
preferred stock, and 149,511 shares of common stock. The
debentures are to be offered for public sale at 100% of
their principal amount. The company proposes to offer
Underwriter—Amico, Inc.
March
D. C. Underwriters—G. J. MiU
Washington, D. C. Note-r-Ralph B. Leonard
& Sons, Inc., of New York City is no longer involved in
the underwriting.
*
'
- mm
•
,
t;,
Bldg., Washington,
Tower
Omaha, Neb.
through subscription
public sale in units
for
(7/5-8)
Electronics, Inc.
filed
10
Arden
trust
offered
Underwriter—None.
Northport, L. I., N. Y.
May 13 filed $4,000,000
series due July 1, 1990
April 29 filed $1,800,000 of 4% 20-year collateral
bonds and 1,566,000 shares of class A non-voting com¬
mon stock.
It is proposed that these securities will be
vestment
share PrMeejb
Office —1010 inira
—
York.
American Mortgage
of com¬
notification) 200,000 shares
cents). Price-$1 per
140,000 shares of class A common stock.
Price
To be supplied by amendment.
Proceeds —
$350,000 for general corporate purposes and the balance
for working capital.
Office—New York City. Under¬
writer—Michael G. Kletz & Co., Inc., New York City.
supplied by
To be
,
,
„
general corporate purposes.
Arco
•
May
amendment. Proceeds — For
general corporate purposes and working capital. Office
—4851
N. W. 36th
Ave., Miami, Fla. UnderwritersHardy & Co. and Filor, Bullard & Smyth, both of New
Price
stock (par 10
Street, East
filed
30
(letter of
25
May
mon
Insurance Co.
Address—Gate City, va.
Aquavee Corp.
—For
share.
per
resources.
4
200,000 shares of capital stock. Price—$8
Proceeds —To increase capital and surplus.
Office—1455 Union Ave., Memphis, Tenn. Underwriter—
Union Securities Investment Co., also of Memphis, which
will receive a selling commission of $1.20 per share.
• American International Aluminum Corp.
(6 10)
April 13 filed 400,000 shares of common stock (par 25c).
Nov.
mrnm?
Underwriter—None.
April 15 filed 96,450 shares of class "A" common capital
stock. Price—$5.80 per share Proceeds—For general cor¬
porate purposes. Office—917
I>. C. Underwriter—None.
for certain properties and services.
Proceeds—For expenses for explor¬
ation of oil and gas
34
Continued from page
•
UllU F Mi-uftnu
(2396)
J J.
managers.
•
City
Hough, Inc. of St. Petersburg, Fla., as co-
&
Big Laurel,
v —7
(6/13-17)
Inc.
March 22 filed 400,000
shares of 7% cumulative
preferred
and 400,000 shares of common stock
(par 10 cents), to be offered in units of one share of pre¬
ferred and one share of common. Price—$3 per unit. Pro¬
stock
(par $2.80)
ceeds—To develop
a
resort community and for working
capital. Office—Bryson City, N. C.
Underwriters—Pear¬
Mackay 8c
Murphy & Co., Inc., New York City, and
Co., Reading Pa
'.. 'v,'
son,
"
Birtcher
AV/v
Corp.
March 29 filed $500,000
f':r?'*
of 6% convertible
subordinated
debentures, due April 30, 1975. Price^-At par. Proceeds
—To
pay
bank loans incurred to augment working
capital.
Office — Los Angeles, Calif. Underwriter —
Quincy Cass Associates, Los Angeles, Calif.
•
Bowers
Battery & Spark Plug Co.
(6/8-15)
convertible
debentures, due July 1970, 154,000 shares of common
stock, and 46,200 common stock purchase warrants. The
company proposes to offer these securities in units, each
unit to consist of $100 of principal amount of debentures,
50 common shares, and 15 warrants exercisable initially
at $2 per share. Price—$200 per unit. Proceeds—To re¬
pay loans, purchase new equipment and the balance for
working capital. Office—Indianapolis, Ind. Underwriters
March 29 filed 280,000 shares of common
—Ross, Lyon & Co., Inc., Glocus, Inc.,
Shore & Co., all of New York City.
to be expended either by the' company or through its
subsidiaries for the improvement of certain of its manu¬
May
24
filed
Atlas
$308,000
Inc.
Bowling Centers,
and Harold C.
\
which
par),
250,000 shares will be offered for
at
tween $200,000 and $300,000
is expected to be
expended
costs; including initial rents
plant in the southeastern portion of the
United States which it hopes to obtain and open before
the end of the year; an additional $250,000 is expected
before
of
the
1961
for starting
up
new
facturing facilities/such
(6/27)
May 2 filed 100,000 shares of class A common stock (par
10 cents). Price—To be supplied by amendment.
Pro¬
stock (no
public sale
$6 per share and 30,000 shares will be offered to
selected employees at $5.40 per share.
Proceeds — Be¬
of
material control
connection
with
as
additional mechanization
and
handling and for experimental work in
beryllium; and the balance of the pro¬
ceeds will
working capital. Office — 255
Huntington Avenue, Boston, Mass. Underwriter—Keller
joe added to the company's general funds. Of¬
fice—Reading, Pa.
Underwriter
Dempsey-Tegeler &
ings and for additional working capital. Underwriters—
&
Co., St. Louis and New York.
Glore, Forgan & Co., New York and Fulton, Reid & Co.,
if Automatic Merchandising, Inc.
May 25 (letter of notification) $250,000 of
will
ance
be
used
reduce
to
short-term
bank
borrow¬
Inc., Cleveland, Ohio.
Anken Chemical & Film
April
Corp.
146,555 shares of common stock (par 20
cents) being offered for subscription by holders of out¬
standing common stock of record May 20 at the rate of
one
new
expire
share.
share
on
June
for each
6
six
3:30
at
shares
p.m.
held, with rights to
(EDT).
Price—$30
per
Proceeds—$1,950,000 will be applied toward the
purchase of certain properties and assets of the Sperry
Rand Corp.; $140,000 will be used to retire short-term
bank loans; and the balance for general corporate pur¬
poses. Office—l Hicks Ave., Newton, N. J. Underwriters
~-R.
W.
Pressprich
&
Co.
and
Riter
&
Co.,
both
of
New York.
Appalachian Oil & Mineral Development Co., Inc.
(letter of notification) 40,000 shares of common
stock of which 15,000 shares will be offered to various
May 23
For
—
additional
Co., Boston, Mass.
to be offered
debentures
filed
7
ceeds
ers
on
the basis of
common
—To
a
10-year, 7%
for subscription by
stockhold¬
$10 debenture for each 12 shares of
Price—At face amount.
stock owned.
Proceeds
short-term indebtedness, buy merchandise,
and for working capital. Office—217 N. Willow Avenue,
repay
•
Aviation
Employees Corp.
Feb. 8 filed
per
share.
sidiaries;
maining
the
for
the
shares
general
purchase of all
of
one
business of
or
the
of
corporate
balance will
formation
the
2,500,000 shares of common stock. Price—$2
Proceeds—Together with other funds, will be
in
invested
or
be
a
used
company's
purposes;
from
substantial
more
insurance
'
■
_
v.
Brockway Glass Co., Inc.
May 19 filed 162,000 shares of
of
to
(7/11-15)
common stock (par $5),
which 32,000 shares are now* outstanding and are
be
offered for public
sale by the present hold¬
ers
thereof and
issuing
130,000 shares are to be offered by the
Price—To be supplied by amendment.
company.
applied toward the cost of building
equipping a new glass container plant at Rosemount,
Minn., near St. Paul and Minneapolis, estimated at
750,000. The balance of the cost of the plant will be paid
Proceeds—To
be
and
Underwriter—None.
Tampa, Fla.
—
time
three sub¬
and the re¬
to
time
interest in
or
for
the
other companies engaged in
finance or to further sup¬
or
plement the funds of the three subsidiaries. Office—930
'
it J
I
the company's funds.
Office—1200 Wood Street
Brockway, Pa.
Underwriters — Lehman. Brothers ana
Blyth & Co., Inc., both of New York./
.
from
• Bruce National
Enterprises, Inc. (6/13-17)
April 29 filed 335,000 shares of common stock (Par.A
cents).
Price—$6 per shares Proceeds—For?-reductioj
of outstanding indebtedness; to pay off mortgages
certain
property; for working
capital and other
corp
Number.5956
Volume" 191;
,
.
.The Commercial and Financial Chronicle
Office—1118 N.E. 3rd Avenue, Miami,
underwriter — Geprge; O'Neill & Co., Inc., New
nurooses.
4*
!wra* r?n -antt"fraud proceeding has
Mr. Burka and
of
•°Brush
Beryllium Co.
(6/8)
of common stock, of which
to be offered for the account of the
vcmn£ company and
150,206 shares, representing out¬
line stock, are to be offered for the account of the
Present holders thereof. Price — To be supplied by
Snendment. Proceeds — For expansion. Office—CleveInri Ohio. Underwriters-—Kuhn, Loeb & Co., New York
filed 410,206 shares
11
Anrii
Snoo
shares are
Byer-Rolnick Hat Corp. ^ ,v-: ■/
Mav 9 filed 100,000 outstanding shares of common stock.
Price
To be supplied by amendment. Proceeds — To
feiiing stockholders. Office—601 Marion Drive, Garland,
Tex Underwriters — Dallas Rupe & Son, Inc., Dallas,
Tex! and Straus, Blosser & McDowell, Chicago, 111.
C F. C. Funding Inc. (6/27)
- /
May" 6 (letter of notification) 75,000 shares of common
ctock (par 10 cents), Price—$2 per share. Proceeds—For
general corporate purposes. Office—90 Broad St., New
York 4, N. Y. Underwriter—Darius Inc., New York, N. Y.
•Cabana Pools, Inc. (6/6-10)
March 31 (letter of notification) 150,000 shares of com¬
mon stock (par 10 cents). Price—$2 per share. Proceeds
_For general corporate purposes.
Office —640 Fifth
Avenue, New York, N. Y.
Underwriter — Mandell &
Kahn, Inc.,
Time-Life. Building, Rockefeller Center,
New York, N. Y.
.«
'V/;'."
x Cambridge Financial
Corp.
rX&'fi
5
May 25 (letter of notification) 299,700 shares of common
stock (par one cent). Price—$1 per share. Proceeds—.
(
—
general corporate purposes.
Office —161 William
Street, New York, N. Y. Underwriter—None.
For
Capital Shares Inc., San Francisco, Calif.
*
May 3 filed 1,100,000 shares of common stock. Price—
$1 per share. Proceeds—To increase capital and surplus
and for working capital.
Underwriter—None.
• Cetlomatic Battery Carp. (6/27-7/1)
May 20 (letter of notification) $270,000 of 6% guaran¬
teed 5-year convertible notes and 6,000 shares of com¬
to be offered in units consist¬
$90 note and two shares of common stock. Price
—$100 per unit. Proceeds^—For working capital. Office—
300 Delaware St., Archibald, Pa. Underwriter—Willis E.
stock (par 10 cents)
ing of
a
Burnside &
Co., Inc., New York,
^ Central Illinois Electric & Gas Co.
June
(7/12)
$10,000,000 of first mortgage bonds series
filed
1
due 1990. Proceeds—To
be used to provide, a porti©noO£
required for present and contemplated con¬
struction program of the company and to provide for
the funds
the payment of some
$5,000,000 of bank .loans incurred
purposes. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc., Kidder, Peabody & Co. Inc.
and White, Weld & Co. (jointly); Blair & Co. Incorpor¬
ated, Merrill Lynch, Pierce, Fenner & Smith Inc. and
Stone & Webster Securities
Corp. (jointly). Bids—Ex¬
to
or
be incurred
for such
pected to be received
Certified
Credit
on
July 12.
& Thrift Corp.
(6/6-10)
Jan. 26 filed 250,000 shares of class A stock
($10 par)
and 250,000 shares of class B stock
(20c par), to be
offered in units of one share of each class of stock. Price
—$20.20
per
unit.
Proceeds—To pay mortgages.
—Columbus, Ohio. Underwriter—Commonwealth
Office
Secu¬
rities Corp., Columbus.
•
Chemical
March 16
Packaging Co., Inc.
(6/3)
(letter of notification) 115,000 shares of com¬
stock (par 10 cents).
Price—$2.50 per share. Pro¬
ceeds — For general
corporate purposes.
Office — 755
Utica
mon
Avenue, Brooklyn, N. Y. Underwriters—Mainland
Securities Corp., 156 N. Franklin Street, Hempstead, N.
Y. and
Jeffrey-Robert Corp., 382 S. Oyster Bay Road,
Hicksville, L. I., N. Y.
•
Chemo-Vive Processes, Inc. (6/13-17)
(letter of notification) 75,000 shares of class A
(par 10 cents). Price—$2 per share. Pro¬
ceeds—To purchase
machinery and equipment and the
balance for
working capital.
Office —609-11 Fourth
Avenue, Juniata, Altoona, Pa.
Underwriter—General
Investing Corp., New York, N. Y.
April 22
common stock
April
19
Corp. (6/13-17)
(letter of notification)
'V
262,750 shares of com¬
stock (par 10 cents).
Price—$1 per share. Proceeds
--For general
corporate purposes. Office—100 W. 10th
mon
weet, Wilmington 99, Del. Underwriter—Havener Se¬
curities Corp., New
York, N. Y.
Circ'e"The"siShts,
M
Principal amount. Proceeds—For initiating sight-seeing
Office—Washington, D. C. Underwriter—None.
Bottling Co. of New York (6/13-17)
i,
298,204 outstanding shares of its common
JfSCob
I
iock.
Price—To be supplied by amendment. Proceeds
rA° selling stockholders. Underwriter—Eastman Dil-
in
'
mon Securities & Co., New York. Listing—The
mPany intends to apply for NYSE listing.
rvK°!d. Vak® p'Pe
tho
,
Line Co., Ltd.
d 200,000 shares of
common
stock. Price—At
market, at time, of offering. Proceeds—For general
r/>?0Je, Purposes. Office—1410 Stanley St., Montreal,
nnr
nada.
Underwriter—Michael Fieldman, New York.
Capers* Inc. •
ntnr.1
^letter of notification) 150,000 shares of common
vrnti 'no par)* Urice — $2 per share. Proceeds — For
pXi"# capital. Office—7626 Old Georgetown Road,
jn^esdd> Md. Underwriter—F,; A. Burka, Inc., Wash/
•
S100, D. c.
Note
—
general
The SEC has announced May 9
corporate purposes.
Office
61-02
—
31st
Ave.,
Woodside, L. I., N. Y. Underwriters—Diran, Norman &
Co., Inc., V. S. Wickett & Co., Inc., and Cortlandt In¬
vesting Corp., New York, N. Y.
Dec. 16,1957 filed
$25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct.
1, 1968 and 3,000,000 shares of
offered in units
as
common
stock to be
follows: $1,000 of bonds and 48 shares
of stock and $100 of debentures and nine
shares of stock.
Price—To be supplied by amendment.
Proceeds — To
construct refinery. Underwriter—Lehman
Brothers, New
York. Offerings-Indefinite. V,
^- /
;
;
;
Compressed Concrete Construction Corp.
(6/13-20)
May 9 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3
per share/Proceeds—For
general corporate purposes. Office — 313 W. Jericho
Turnpike, Huntington, L. L, N. Y. Underwriter—Cap¬
ital Accumulation Corp., Franklin National Bank
Bldg.,
Roosevelt Field, Garden City, N. Y.
Connecticut & Chesapeake, Inc.
^'
April 29 filed $585,000 of 4*/2% promissory notes and
2,250 shares of common stock. It is proposed to offer
these securities for public sale in units, each consisting
of $260 of notes and one share of stock, provided that
the minimum
purchase shall be 10 units for
a
consideration of $3,600 ($2,600 of notes and 10
minimum
shares of
stock).
Price—$360 per unit. Proceeds—For repayment
of certain advances made to the company. Office—72414th
Street, N.
W.,
Washington, D.
Underwriter—
C.
Shannon 6z Luchs Securities Corp.
Consolidated
Edison
Co.
May 6 filed $50,000,000 of first and refunding mortgage
bonds, series R, due June 1, 1990. Proceeds—-To become
part of the treasury funds of the company and will be
applied toward retirement of some $55,000,000 of shortterm bank loans. Underwriter
—
To
be determined
by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc. and The First Boston Corp. (jointly); Morgan
Stanley & Co. Bids—Expected to be received oh June 14,
in room 1628, 4 Irving Place, New York City, up to 11
a.m. EDT.
Information Meeting — By appointment on
June 7 between 9:00
a.m.
V
and 12 noon.
Consolidated Realty Investment Corp.
April 27 filed 2,000,000 shares of common stock. Price—
$1 per share. Proceeds—To establish a $250,000 revolving
fund for initial
and intermediate
financing of the con¬
struction of custom
or pre-fabricated type residential or
buildings and facilities upon properties to
be acquired for sub-division and shopping center devel¬
opments; the balance of the proceeds will be added to
working capital. Office—1321 Lincoln Ave., Little Rock,
Ark. Underwriter—The Huntley Corp., Little Rock, Ark.
commercial
ic Consolidated Research & Manufacturing Corp.
(7/11-15)
May 27 filed 50,000 shares of class A and 50,000 shares
of class B stock (par 10 cents). The company proposes
to offer these shares in units of one share of each class.
per unit.
Proceeds—For equipment, sales
expansion, increased advertising and marketing program
budget, and working capital and general expansion. Of¬
fice—1184 Chapel Street, New Haven, Conn.
Under¬
writer—Bertner Bros., New York.
Price—$6.50
Constellation Life Insurance Co.
March 29 filed 1,350,000 shares
of common stock, of which
350,000 shares will be reserved for stock options, 150,000
shares will be offered to holders of the outstanding
common
on
a
"first-come-first-served" basis at $3.25
share, and 850,000 shares will be publicly offered.
Price—$3.50 per share.
Proceeds—To general funds.
Office — Norfolk, Va. Underwriter — Willis, Kenny &
per
Ayres, Inc., Richmond, Va.
•
Continental Capital Corp.
;
(6/6-10)
$10).
share. Proceeds—For investment in small
April 19 filed 235,000 shares of capital stock (par
Price—$14 per
business concerns, and to
the extent necessary may use a
portion thereof to retire its outstanding subordinated
held by the Small
Business
Administration.
Office — 120 Montgomery
debenture in the amount of $150,000
Street,
nell
San
Francisco,
& Co., Inc., New
Calif.
March 30 (letter of
Underwriter — McDon¬
York.
notification) 58,000 shares of capital
Price — $5 per share. Proceeds— For
general corporate purposes. Office—4620 N. Sheridan
Road, Chicago, 111. Underwriter—Link, Gorman, Peck
& Co., Chicago, 111.
stock (Par $1).
Country Club Corp. of America
April 29 filed 200,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—For repayment
of outstanding debt, including payment of mortgages,
taxes, notes, and miscellaneous accounts payable; for
general corporate purposes and construction of new fa¬
cilities.
Office—1737 H. Street, N. W., Washington,
D. C.
including1 $5,199,800 of bank loans made
directly to an unconsolidated subsidiary).
It is con¬
templated that the additional funds will be used to ac¬
quire land for development or resale to dealers, con¬
struction loans to
builder-dealers, expansion of the com¬
pany's market area, and the possible manufacture and
erection, in cooperation with builders, of "shell" house
packages for completion by the home owner on a "do-ityourself" basis. Office—7111 Florida Boulevard, Baton
Rouge, La. Underwriter—A. G. Becker & Co., Inc., of
Chicago and New York.
Custom Craft Marine
Co., Inc. (6/20-27)
(letter of notification) 85,000 shares of comPrice—$3 per share. Proceeds
—For general corporate purposes.
Office—1700 Niagara
Street, Buffalo, N. Y. Underwriter—R. A. Holman & Co.,
Inc., New York, N. Y.
March 28
•
Underwriter—A. J. Gabriel Co., Inc., New
Crawford Corp. (6/6-10)
March 28 filed 200,000 shares of common
of which 100,000 shares are to be offered
for account of issuing company and the
York.
•
stock (par $1),
for public sale
balance, being
outstanding stock, by the present holders thereof. Price
—To be supplied by amendment. Proceeds—To be initi¬
ally added to working capital and used for general cor¬
porate purposes, including but not limited to the reduc¬
tion of short-term bank losfris ($5,921,872 outstanding at
;
stock (par 25 cents).
mon
Dalto
Corp.
(7/1)
134,739 shares of common stock, to be
offered for subscription by holders of such stock of
record May 2 at the rate of 'one new share for each
two shares then held. Price—To be supplied by amend¬
March 29
filed
ment.
Proceeds—For the retirement of notes and addi¬
tional
working capital.
writer—None.
Office—Norwood, N. J.
Under¬
■;/
■
Dart
Drug Corp.
March 30 filed 200,000 shares of class A common
stock,
of which 170,000 shares are to be offered for
public sale
on behalf of the
issuing company and 30,000 shares, be¬
ing outstanding stock, on behalf of the present holders
thereof. Price—$5 per share. Proceeds—For repayment
of corporate indebtedness and for
working capital. Office
St., N. E., Washington, D. C. Underwriter—
Ilodgdon & Co., Washington, D. C. Offering—Expected
—5458 Third
sometime
in
June.
•'/'
<
stock
(par
one
■
'
1
Defense Electronics, Inc.
April 12 (letter of notification)
ceeds—For
(6/14)
37
Dec. 31, 1959,
mon
Cosmopolitan Insurance Co.
stock and $330,debentures (10-year 8% redeemable). Price—For
stock, $1 per share; debentures in units of $1,000 at their
«?tn
been filed against
his firm. The company is in the
process
underwriter.
a new
Columbia Technical Corp. (6/20-24)
May 6 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—For
Inc.
March 30 filed
165,000 shares of common
buu of
service.
selecting
Commerce Oil Refining Corp.
City,' and McDonald & Co., Cleveland.
mon
(2397)
200,000 shares of
com¬
cent).
machinery
Price—$1.50 per share. Pro¬
and electronic test' equipment,
working capital and a reserve fund. Address—Rockville, Md. Underwriter—Balogh & Co., Inc., Washing¬
ton, D. C.
./
...
Deluxe Aluminum Products, Inc.
Oct. 15 filed $330,000 of convertible
(6/13-17)
debentures, and 70,common stock. Price—For the
debentures,
100% of principal amount; for the stock, $5 per share.
Proceeds—From 10,000 shares of the
common-stocky to
the present holders thereof; from the rest of the offer¬
000 shares of
ing, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St., Miami, Fla.
Underwriter— R. A. Holman & Co., Inc.
ic Detroit Tractor, Ltd.
"
May 26 filed 1,375,000 shares of class A stock.
Of this
stock, 1,125,000 shares are to be offered for the com¬
pany's account and the remaining 250,000 shares are to
be offered for sale by the holders thereof. Price—Not to
exceed $3 per share.
Proceeds—To be applied to the
purchase of machine tools, payment of $95,000 of notes
and
accounts
poses.
payable, and for general corporate pur¬
Office—1221 E. Keating Avenue, Muskegon, Mich.
,
Underwriter—To be supplied by amendment.
-
Development Credit Corp. of Maryland (6/13-17)
March 29 filed 2,000,000 shares of common stock. Price
—$1.10 per share. Proceeds — For generaT corporate
purposes. Office—22 Light St., Baltimore, Md. Under¬
writer—None.
Diversified
■
>•
Communities, Inc.
Sept. 25 filed 367,200 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For ac¬
quisition of Hope Homes, Inc., Browntown Water Co. and
Cantor & Goldman Builders, Inc., with the balance to
be used as working capital.
Office—29A "Sayre Woods
Shopping Center, Madison Township, P. O. Parlin, N. J.
Underwriter—Lee Higginson Corp., New York.
Offer¬
ing—Postponed.
Diversified Realty Investment Co.
April 26 filed 250,000 shares of common stock. Price—
$5 per share (par 50 cents). Proceeds — For additional
working capital. Office—919 18th Street, N. W., Wash¬
ington, D. C. Underwriter—Ball, Pablo & Co., Washing¬
ton, D. C.
• Doak
Pharmacal, Inc. (6/6-10)
April 28 (letter of notification) 100,000 shares of com¬
mon stock (par 10 cents). Price—$3 per share.
Proceeds
—For general corporate purposes/ Office—99 Paris Ave¬
nue, New York, N. Y. Underwriter—Ross Securities, Inc.,
99 Wall
Street, New York 5, N. Y.
Drug Associates, Inc. (6/6-10)
May 6 (letter of notification) 100 units of $100,000 of 7%
sinking fund debenture bonds and 10,000 shares of com¬
mon stock
(par $1) to be offered in units consisting of
one $1,000 debenture and 100 shares of common stock.
Price—$1,100 per unit. Proceeds—For general corporate
purposes. Office-^—1238 Corlies Ave., Neptune, N. J. Un¬
derwriter—Fidelity Securities & Investment Co., Inc.,
Asbury Park, N. J.
•
Dubois
Chemicals, Inc.
(6/6-10)
\
March 30 filed 200,000 shares of common
to be publicly offered and 125,000 shares
stock (par $1)
issuable under
the company's Restricted Stock Option Incentive Plan for
key employees. Price—To be supplied by amendment.
Proceeds—To reduce a bank loan in the amount of $2,681,000. Office—634 Broadway, Cincinnati, O.
Under¬
writer—Allen & Co., New York.
?
Durox of Minnesota, Inc.
April 11 filed $650,000 of 7% first mortgage bonds and
120,000 shares of common stock (par $1). The offering
will be made in units of one bond ($100 principal amount)
and 20 shares of common stock or one unit of 50 bonds at
.
Continued
on
page
38
The
Continued from page
37
amount plus
principal
-
Price—-To be
accrued interest.
$10
per
Esquire Radio &
.
Proceeds—For general
share.
Inc. (6/6-10)
150,000 shares of capital
First
I
(6/6-10)
(6/6-10)
stock (par 10c).
of subordi¬
obliga¬
tions; and the balance of approximately $477,000 will be
added to working capital and used for general corporate
purposes, including financing of finished and raw mate¬
Office—39 Broadway, New
rial inventory.
./
National Realty & Construction Corp.
April 25 filed 150,000 shares of cumulative convertible
preferred stock first series, $8 par, redeemable by the
company on or after May 15, 1963 at $10 per share,
and 150,000 shares of common stock (par 10 cents). It
is proposed that these securities will be offered in units,
each unit consisting of one share of preferred and one
replace funds used by company for payment
nated notes; $50,000 to repay short-term bank
Note
per
ing—Delayed.
Proceeds—$73,000 will be used to
Price—$5 per share.
stock (par $1).
Price—To be supplied by amendment. Proceeds—Ap¬
proximately $200,000 of the proceeds from the sale of the
stock will be used for the purchase and installation of
machinery and equipment in a new plant which the com¬
pany is presently negotiating to lease; $400,000 will be
used for the acquisition of tools, dies, jigs and fixtures;
$100,000 for leasehold improvements; and the balance for
working capital. Office—2546 Tenth St., Berkeley, Calif.
Underwriter
William R. Staats & Co., Los Angeles,
11 filed
Electronics, Inc.
150,000 shares of common
March 30 filed
corporate pur¬
Un¬
Dymo Industries,
stock (par $1).
supplied by amendment. Proceeds—For
general corporate purposes. Office—Saratoga Springs,
N. Y.
Underwriter — Sutro Bros. & Co., New York.
Offering—Expected in late June or early July.
(
•
Thursday, June 2, 1960
unit. Proceeds—For purchase of
construction of racing plant as well
as other organizational and miscellaneous expenses. Of¬
fice—142 Pierrepont Street, Brooklyn, N. Y. Underwriter
—Stroud & Co,. Inc., New York and Philadelphia. Offer¬
be
Price—To
J. Rice &
Co., Min¬
Office—400 Park Avenue, New York City.
derwriter—Charles Plohn & Co., New York City.
•—This statement has been withdrawn.
80,000 shares of common
April 29 filed
stock. Price—
300,000 shares of common
filed
poses.
April
v .
land and the cost of
& Electronics Corp.
Espey Mfg.
plant
Corp.
Dworman
15
Chronicle
stock. Price—$155
N. C.
Underwriter—Courts & Co.,
Bldg., St. Paul, Minn. Underwriters—Irving
Co., Inc., St. Paul, Minn, and M. H. Bishop &
neapolis, Minn.
•
Office—246 Charlotte St., Asheville,
Atlanta, Ga.
ing capital.
\
"*
supplied by amendment. Proceeds—For additional
and equipment and to provide working capital to com¬
mence and maintain production.
Office — 414 Pioneer
Jan.
Commercial and Financial
(2398)
38
share of common.
Price—To be supplied by amendment.
Proceeds—$257,000 will be used to repay loans made by
an officer and director of the company and a corpora¬
tion controlled by him to provide funds for apartment
York. Under¬
about $500,000 will be used for the
portion of bank notes; and the balance
will be added to working capital for use in the acquisi¬
March 30 filed $2,000,000 of convertible subordinated
tion of new properties and for the company's construc¬
debentures, due 1970. Price—To be supplied by amend¬
tion program. Office — 630 Third Avenue, New York.
ment. Proceeds—$950,000 will be used to repay short- Underwriter—H. Hentz & Co., New York.
term notes and up to $375,000 is to be invested in Micro• Florida Builders,
Inc. (6/13-17)
mega Corp.; the balance of the proceeds will be used
to acquire new facilities, to maintain necessary inven¬
Mar. 30 filed 80,000 shares common stock (par $1). Price
*
—To be supplied by amendment.
tory to meet current and anticipated sales requirements,
Proceeds—Between
California.
to supplement working capital and for other general
$200,000 and $250,000 will be used.to establish or acquire
• Dynamic Films, Inc.
(6/6-10)
corporate purposes. Office—26-12 Borough Place, Wooda
Federal Housing Administration approved mortgage
March 29 (letter of notification) 100,000 shares of com¬
side, N. Y. Underwriter—C. E. Unterberg, Towbin Co.
financing and service company; $200,000, will be used to
mon stock (par 10 cents).
Price—$3 per share. Proceeds
Fairmount Finance Co. (6/26-24)
pay off bank loans; and the balance for working capital.
<—For general corporate purposes.
Office — 405 Park
Office—700 43rd St. South, St. Petersburg, Fla, Under¬
May 6 (letter of notification) 58,000 shares of class A
Avenue, New York, N. Y. Underwriter—Morris Cohon
writer—Jaffee & Co., New York. ';l
common stock
(par $5). Price—At par ($5 per share).
& Co., New York, N. Y.
Proceeds—For working
capital.
Office—5715 Sheriff
Florida Home Insurance Co.
• Dynatron Electronics Corp.
March 30 filed 17,500 shares of common stock to be of¬
Road, Fairmount Heights, Md. Underwriter—J. T. Pat¬
April 29 (letter of notification) 100,000 shares of com¬
terson & Co., Inc., 40 Exchange Place, New York, N. Y.
: fered to holders of the company's 85,995 outstanding
mon stock (par 10 cents). Price—$1 per share. Proceeds
common shares at
the rate of one share for each five
Family Fund Life Insurance Co.
—For general corporate purposes.
Office—178 Herricks
shares held. Unsubscribed shares will be offered to em¬
March 30 filed 116,800 shares of common stock, to be
Road, Mineola, N. Y. Underwriter—General Securities
offered for subscription by stockholders at the rate of
ployees and officers of the company who are stockhold¬
Co., Inc., New York, N. Y.
ers without further offering of such unsubscribed shares
one new
share for each 5 shares held.
Price—$9 per
E. S. C. Electronics Corp.
(6/20-24)
share; unsubscribed shares at $10.25 per share. Proceeds : to other stockholders of the company. Price—To be sup¬
May 17 (letter of notification) 75,000 shares of common
—To increase capital and surplus and expand the busi- , plied by amendment. Proceeds—To be added to the com¬
stock (par 10 cents).
Price—$4 per share. Proceeds—
ness.
Office—1515 Spring St., N. W., Atlanta, Ga. Un¬
pany's general funds to be held in cash or invested in
For general
corporate purposes. Office — 534 Bergen
securities. Office
1335 Biscayne Blvd., Miami, Fla.
derwriter—J. H. Hilsman & Co., Inc., Atlanta, Ga.
•
FXR,
repayment of a
A
(6/3)
Inc.
house construction;
& Co.
writer—Myron A. Lomasney
—
t
—
Palisades Park, N.
Boulevard,
Bissell
&
Meeds, New York, N.
East Alabama Express,
J.
Y.
Underwriter—Laird,
Farmers' Educational &
Underwriter—None.
Cooperative
April 1 (letter of notification) 77,000 shares of common
stock (par. $1).
Price—$2.50 per share. Proceeds—To
repay notes payable, reduce equipment purchase obliga¬
tions, accounts payable and for working capital. Office
—109 M Street, Anniston, Ala.
Underwriter—First In¬
vestment Savings Corp., Birmingham, Ala.
$2,500,000 of registered
March 29 filed
debentures, series
D, maturing from 1969 to 1980. Price—To be offered
in units of $100. Proceeds—To pay notes maturing be¬
fore Dec. 31, 1963, with $1,107,000 to be contributed to
surplus or loaned to
Underwriter—None.
subsidiaries. Office—Denver, Colo,
^
.>
■
Farrington Manufacturing Co. (6/20-24)
25 filed $6,000,000 of subordinated convertible
debentures due 1970. Price—To be supplied by amendment. Proceeds—$2,000,000 to be applied to the pay¬
ment of bank loans; $2,800,000 to the scanner program
Office—1230 First Avenue, N., Birmingham
Underwriter—None.
ing capital.
3, Ala.
Edgerton, Germeshausen & Grier,
(6/13-20)
.
Inc.
May 5 filed 120,000 shares of common stock (par $1) of
which 20,000 shares are now outstanding and are to be
offered for public sale by the holders thereof and 100,000 shares are to be offered by the company. Price—To
general cor¬
porate purposes. Office — 160 Brookline Ave., Boston,
Mass. Underwriter—Kidder, Peabody & Co., New York.
supplied by amendment. Proceeds—For
be
Edwards
Engineering Corp.
April 8 filed 85,000 shares of common stock of which
70,000 shares are to be offered for the account of the
issuing company and 15,000 shares, representing out¬
standing stock, are to be offered for the account of the
present holders thereof. Price—$3.50 per share. Pro¬
general corporate purposes including sal¬
aries, sales promotion, moving expenses, and research
and development work.
Office—715 Camp Street, New
Orleans, La. Underwriter—Sandkuhl & Company, Inc.,
New York City and Newark, N. J.
ceeds—For
Elco Corp.
(6/6-10)
April 22 filed $1,000,000 of 6% convertible subordinated
debentures due May 15, 1975, 82,065 common stock pur¬
chase warrants, and 87,809 shares of common stock re¬
served against the exercise of the warrants.
Price—
100% of principal amount plus accrued interest from
May 15, 1960. Proceeds—For retirement of the company's
indebtedness to The First Pennsylvania Banking & Trust
Co., and for the purchase of machinery and equipment.
Location—"M" Street below Erie Avenue, Philadelphia,
Pa. Underwriter—S. D. Fuller & Co., New York.
1960, including , (a) -$1,000,000
Farrington
Electronics, Inc., a
B stock: Price—
research and de¬
velopment, $200,000 for working capital, and the balance
for sales promotion expenses.
Office — Cedar Grove,
April 26 filed 125,000 shares of class
$4 per share. Proceeds—$100,000 for
and
chase
r
v
N. J.
Underwriter—D. F. Bernheimer & Co.,
for expenditures by *
York
City. '
newly-formed date
subsidiary, for inventory, 250,000 to pur-1
processing
test
equipment for producting scanners
and
$250,000 as working capital; and (b) $1,300,000 for re¬
search and development. Office—77 A St., Needham,1
Mass. Underwriters—Cyrus J. Lawrence & Sons, New
City; and Brawley,
York
tario, Canada.
Cathers & Co.. Toronto, On(6/20-24)
stock (par $1),
for the account
holders thereof and 50,000 shares are to
May 13 filed 250,000 shares of common
of which 200,000 shares are to be offered
of the present
be offered for the account
—To be
,
of the issuing company. Price
supplied by amendment. Proceeds—$300,000
will
purchase new presses and other production,
equipment and the remainder will be used as working
capital. Office—1421 North Garvin St., Evansville, Ind.
Underwriter — Hayden, Stone & Co., New York City
be used
7 •/
.
(6/6-10)
March 30 (letter of notification) 59,000 shares of com¬
mon stock (no par). Price—$5 per share.
Proceeds—Fort
an expansion program.
Office—3327 Elkton Ave., Dayton
Federal
Ohio.
.
Steel
Corp.
Underwriter—Westheimer & Co., Cincinnati,
Ohio.
•
Electronics, Inc.
Federated
(6/20-24)
(letter of notification) 300,000 shares of com¬
cents). Price—$1 per share. Proceeds
—For general corporate purposes.
Office—139-14 Ja¬
maica Avenue, Jamaica, N. Y. Underwriter—J. B. Coburn Associates, Inc., New York, N. Y.
stock (par 10
Fidelity Acceptance Corp.
of notification) 12,000 shares of class H
6% cumulative preferred stock. Price—At par (25) per
(6/27-7/1)
March 29
filed 400,000
shares of common stock.
Price—To be supplied by amendment. Proceeds—For
acquisitions, debt reduction, and other corporate pur¬
poses. Office—9744 Wilshire Blvd., Beverly Hills, Calif.
Underwriter—Bache & Co., New York.
March 24 (letter
+ Elja Oil Corp.
May 20 (letter of notification) 75,000 shares of common
stock.
Price — At par ($1 per share).
Proceeds —For
working capital. Office—203 Elsby Building, New Al¬
March
Electrada Corp.
bany, Ind.
•
Englehard Industries, Inc.
(6/3)
Mar. 30 filed 400,000 shares common stock (par $1). Price
—To be supplied by amendment. Proceeds—$2,000,000
to
reduce
outstanding amount of term notes, and the
reduce outstanding short-term indebtedness
and increase working capital.
Office—Newark, N. J.
Underwriters
Dillon, Read & Co. Inc.. and Lazard
balance
to
—
Freres
&
Co., both of New York City.
•
Equitable Leasing Corp. (6/6-10) "
May 9 (letter of notification) 50,000 shares of common
stock (no par).
Price—$2 per share. Proceeds—For work¬
share). Proceeds—For working capital. Office—820 Plym¬
outh Bldg., Minneapolis, Minn.
Underwriter—Ray F.
Kersten, 3332 E. Orange Dr., Phoenix, Ariz.
Figurette,
3 filed
Ltd.
(6/6-10)
100,000 shares of class A common stock,
(par 50 cents) Price—$6 per share. Proceeds—For gen¬
eral corporate purposes. Office—514 N. E. 79th Street,
Miami, Fla.
Underwriter—Myron A. Lomasney & Co..
New York.
Underwriter—None.
>•
(6/13-17)
April 26 filed 1,000,000 ;shares of common stock (par;
value $1). Price—$10 per share. Proceeds—For invest¬
ment.
Office-—9 25
Hempstead" Turnpike/ Franklin
Square, New York.
rated, New York.
Underwriter—Blair & Co. Incorpo¬
Option Plan.
Price—$7.50 per share.
Proceeds—For re-;
payment of bank loans, for company's expansion pro¬
gram, and the balance for working capital.
Office—123,
Frost Street, Westbury, L. I., N. Y. Underwriter—None.
Futterman
Corp.
(7/5-8)
April 1 filed 660,000 shares of class A stock.
Price—To
amendment. Proceeds—For acquisition
of properties. Office—580 Fifth Avenue, New York. Un¬
derwriter—Reynolds & Co., New York.
be
•
supplied by
Gamble
Brothers
(letter of notification) 12,500 shares of com¬
mon stock (par $5) of which 11,246 shares are being of¬
fered for subscription to stockholders of record as of
April
14
each share held
rights to expire on June 16. Price—To stockholders,
$18.50 per share; to the public, $22.50 per share/ Proceeds
—For an expansion program. Office—4601 Allmond Ave.,
Louisville, Ky. Underwriter—Stein Bros. & Boyce, Bal¬
timore, Md.
June 2, on the basis of one new share for
with
April 25
mon
Inc., New
/"'u-
FrankSin Corp.
to
(managing).
3,
•
:"
• Friendly Frost, Inc.
(6/6-10)
April 5 filed 150,000 shares common stock (par 10c). An
additional 96,500 shares included in the registration state¬
ment are reserved for the company's Employees' Stock
,
Faultless Caster Corp.
(6/7)
v
March
in
Inc.
April 14 filed 168,833 shares of common stock, PriceTo be- supplied by amendment. Proceeds — To selling
stockholders. Office—2223 Allegheny Ave., Philadelphia,
* Pa. Underwriters—Eastman Dillon, Union Securities & '
'
j Co. and A. M. Kidder & Co., both of New York. /J
Foto-Video Electronics Corp.
(6/10)
•
^ Ebsco Industries, Inc.
May 23 (letter of notification) 100,000 shares of common
stock (par $1) to be offered to certain key employees
of the company and its subsidiaries on a first subscrib¬
er's basis. Price—$2.55 per share. Proceeds—For work¬
Food Fair Stores,
•
Union of America
Inc.
it Filmways, Inc.
May 27 (letter of notification) 16,000 shares of common
stock
(par 25 cents). Price—At market price on the
American Stock Exchange at the time of sale. Proceeds
go to a selling stockholder.
Office —18 E. 50th
Street, New York 22, N. Y. Underwriter—None.
—To
Finger Lakes Racing Association, Inc.
28 filed $4,500,000 of 20-year 6%
subordinated
Dec.
sinking fund debentures due 1980 and 450,000 shares of
class A stock (par $5) to be offered in units, each con¬
sisting of $100 of debentures and 10 shares of class A
Garrett Corp (6/15)
May 5 filed 100,000 shares of common stock (par $2).
Price—To be supplied by amendment. Proceeds—To re¬
duce
presently outstanding indebtedness. Office—9851,
Sepulveda Blvd., Los Angeles, Calif. Underwriter—Mer¬
rill
•
Lynch, Pierce, Fenner & Smith Inc., New York.
Gem
International, Inc.
(6/27-7/1)
Mar. 29 filed 150,000 shares common stock (par $1). Frice
—To be supplied by amendment. Proceeds—$125,000 to
open, furnish and equip the new Wichita store being
built for the company by others; $75,000 to open,
nish and equip the second store in St. Louis,
fur¬
similarly
being built by others; $128,600 to purchase the assets of
Embee, Inc., and Garrol, Inc., who now hold the basic
lease on the premises used by the Kansas City operating
company and who sublease the premises to that company:
$208,000 for advance to the Honolulu subsidiary to en¬
able it to purchase the assets of Honden, Ltd., Honla,
Ltd., and Dacat, Ltd., which now hold the basic leases
on
the store building; $105,000 for advance to Gem
Stores, Inc., and Gem of St. Louis, Inc., to enable those
corporations to repay loans; and the balance for general
corporate purposes and as needed to expand existing
facilities and
to establish new locations.
Office—411'
Empire
Building,
Denver,
Colo.
Underwriters —
Bos-
Number 5956
191
Volume
The Commercial and Financial Chronicle
...
Sullivan & Co., Inc., Denver, Colo.; and Scherck,
«,nrth
the
Co., St. Louis, Mo,
.
• General Atronics
Corp. (6/15)
March 18 filed 155,660 shares oi common stock. Price
S3 50 per share. Proceeds—$60,000 for additional lab¬
oratory and production equipment, $80,000 for additional
developmental engineering and sales promotion of mafprials handling equipment, $80,000 for investment in
Atronic Learnings Systems, Inc., $93,000 for repayment
of bank loans, and $157,859 for working capital. Office
Bala-Cynwyd, Pa. Underwriter — Harrison & Co.,
Philadelphia, Pa.
two
'
*
*
General Drive-In Corp.
ceeds
-
in
of the proceeds
Oregon
Portland,
Gross
Furnace Manufacturing Co., Inc.
(letter of notification) 120,000 shares of com¬
stock
(par 10 cents). Price — $2.50 per share.
mon
Proceeds
/. ..V-
X ' X';';
'./X'
v'
^ Gibbs & Hill, Inc.
May 25 (letter of notification) 3,500 shares of common
stock (par $5). Price—$39.90 per share. Proceeds-/For
general
corporate purposes.
Address
Underwriter—None.
X
—
Pennsylvania
Station, N, Y.
Glass
vS^'X
(6/13-17)
Magic Boats, Inc.
For
advertising, /equipment and working
capital. Office—c/o Joseph JJ Gross, 2411 Sunnybrook
Road, Richmond, Va. Underwriter—Maryland Securities
Co., Inc., Baltimore, Md.
; '
•
—•
Growth
Capital, Inc.
(6/7)
April 14 filed 500,000 shares of common stock (par $1).
Price—$20 per share. Proceeds—To provide investment
capital and management services. Office—Bulkley Bldg.,
Cleveland, Ohio. Underwriters—McDonald & Co., Cleve¬
land, Ohio and Paine, Webber, Jackson & Curtis, N. Y.
Guild Films
Co., Inc.
■ ■
May 31 filed 17,664,891 shares of common stock.
It is
proposed that 2,400,000 shares will be issued to creditors
of the company
in satisfaction of their claims against the
company. It is also proposed to offer 12,515,000 shares
to various corporations
comprising the Vic Tanny Gym-
ynasium System pursuant to
an
agreement for the acqui¬
sition of said System by the company.
Under an agree¬
ment with Victor A. Tanny the company will acquire
all
the
sium
and
liabilities
of the
System
stock.
;
assets
in exchange for the
Office—New York City.
Vic
Tanny Gymna¬
12,515,000
shares
of
it Gulf Power Co. (7/7)
I
May 27 filed $5,000,000 of first mortgage bonds, due
1990. Proceeds—Together with other funds, will be used
for
property additions and improvements and for pay¬
$3,092,800 of bank loans. Office—75 North Pace
(letter of notification) $51,000 of six-year 6V?%
convertible debentures to be, offered in..denominations
Dec. 30
"
/
Goelet Corp.
(6/27-7/1)
March 1 filed $700,000 of 8%
subordinated Installment
debentures, due in March, 1970, 70,000 shares of com¬
mon stock
(10 cents par) and 35,000 common stock pur¬
chase warrants (exercisable at $4.3,0 per share until May
15, 1965), to be offered in units consisting of $100 of
debentures, 10 common shares, and five warrants. Price
—$143 per unit.
Proceeds—To be applied toward the
company's general business activities. Office—292 Madi¬
son
Avenue, New York. Underwriters—Ross, Lyon &
Co., Inc. and Globus, Inc., both of New York.
Gold Medal Packing Corp.
June 18 filed
572,500 shares of common stock (par one
cent), and 50,000 common stock purchase warrants. Of
the shares
400,000 will be sold for the account of the
company; 110,000 by certain stockholders; 12,300 for the
underwriter; and the remaining 50,000 shares are pur¬
chasable upon exercise of the warrants. Price—$1.25 per
share. Proceeds—For repayment of debt; purchase of
eQuipment and facilities and other general corporate
purposes.
Office—614
B.
Change—Formerly
St.,
&
Eastern
Indefinitely delayed.
.
Broad
Burnside
Utica, N.
Y. Under¬
Co., New York. Name
Packing
Corp.
Offering—
,
Great American Realty Corp.
(6/6-10)
April
8 filed
$2,000,000 of 7% convertible debentures
July 1, 1975, together with 110,000 shares of out¬
standing class A stock. Price—For debentures, at 100%
°f
principal amount. Proceeds—For additional working
due
capital.
Office—15 William St., New York. Underwriter
debentures, Louis L. Rogers Co., 15 William St.,
York City and Hilton Securities, Inc., 580 5th Ave.,
New York
City.
Greenbelt Consumer Services, Inc.
40,000 shares
and
160,000 shares
share.
ot
of series
A common stock
of series B common stock.
Price—$10
Proceeds—$400,000 will be used in payment
bank loans made in
January to finance the
purchase
?Sulpment for two new supermarkets which are plansonA0 be °Penecl in May and June, I960. Approximately
^1)0,000 will be used for the purchase of inventory for
Underwriter—Insurance Stocks, Inc., Denver, Colo.
Henderson's
Portion Pak, Inc.
(6/13-17)
200,000 shares of outstanding common
(par $1). Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office—4015 Laguna
Street, Coral Gables, Fla. Underwriter—Burnham & Co.,
April
filed
18
stock
New York.
Hotel Corp. of America (6/27-7/1)
May 17 filed $1,500,000 of convertible collateral trust
debentures, due July 1, 1972. Price—To be supplied by
amendment. Proceeds—For expansion program. Office—
New York City. Underwriters — Bache & Co. and Bear,
Stearns & Co., both of New York.
•
Howe Plastics & Chemical
Companies, Inc.
(6/6-10)
Dec.
14
(letter of notification) 60,000 shares of com¬
(par one cent). Price—$3 per share. Proceeds
—For general corporate purposes.
Office—125 E. 50th
stock
mon
Street, New York, N. Y. Underwriter—Hilton
ties, Inc., 580 Fifth Avenue, New York, N. Y.
•
Hudson Vitamin
April
15
stock
(par
Products, Inc.
Securi¬
(6/13-17)
filed
212,500 outstanding shares of common
$1). Price—To be supplied by amendment.
motion
5, 1960 at 3:30
p.m.
New York Time, at the office of the
Chase
Manhattan Bank, Room 238, 43 Exchange
New York City. Bids—Expected to be received
due
1990.
Proceeds—To pay some
term notes issued under
series
$15,000,000 of short-
revolving credit agreements to
provide funds for construction purposes, and the balance
will be used to carry forward the construction program
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc. and
White, Weld & Co. (jointly); Salomon Bros. & Hutzler
and Eastman Dillon, Union Securities & Co. (jointly).
Bids—Expected to be received on June 27 at 12 noon
(EDT). Information Meeting—Scheduled for June 15 at
and
for
10:30
other
corporate purposes.
a.m.
Gulf-Tex Development, Inc.
March 30 filed 250,000
$5 per share.
(6/27-7/1)
shares of common stock.
Proceeds—For purchase of Pelican Island;
improvements on said property; and for working
capital and other general corporate purposes, including
the general development of the property. Office—714
Rosenberg St., Galveston, Tex. Underwriter—Myron A.
Lomasney & Co., New York.
for
•
Hamilton Cosco,
Inc.
May 11 filed 300,000 shares of common stock. Price —
To be supplied by amendment.
Proceeds—To members
of the Hamilton family
(company founders), selling
Columbus, Ind. Underwriters —
Smith Barney & Co. Inc., New York City, and City
Securities Corp., Indianapolis, will co-manage the group.
Offering—Expected in late June.
stockholders.
Office
—
Hampshire Gardens
Associates
(6/6-10)
For purchase of the fee title to a garden type apartment
community (Hampshire Gardens) consisting of 14 build¬
ings with a total of 134 apartments in Chillum, Md. Of¬
fice—375 Park Avenue, New York. Underwriter—B. C.
Morton & Company, Inc., New York.
(6/15)
May 3 filed 60,000 shares of convertible preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
Harnischfeger Corp.
selling
stockholders.
Office—89
Seventh
Bear, Stearns & Co.,
—
New York.
I
C
Inc.
(6/27-7/1)
June 29 filed 600,0UU
Price—$2.50
shares of common stock
share.
per
(par $1).
Proceeds—To further the corpo¬
rate purposes and in the preparation of the concentrate
and
enfranchising of bottlers, the local and national pro¬
and advertising of its beverages, and where
necessary to make loans to such bottlers, etc. Office—*
704 Equitable Bldg., Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler & Co., both bf Dehver.
Colo.
•
Illinois
April
Beef, L. & W. S., Inc.
filed
29
stock.
(6/27-7/1)
shares of outstanding common
selling stockholders.
Price—$10
Office—200 South Craig Street, Pittsburgh,
200,000
Proceeds—To
per
share.
Pa.
Underwriters—Amos Treat & Co., Inc., New
,
and Bruno
•
Illinois
May
York,
Lenchner, Inc., Pittsburgh, Pa.
Bell Telephone
Co.
12 filed 3,047,758 shares of common
capital stock
(par $20), to be offered for subscription by stockholders
May 27, 1960, in the ratio of one new share for
of record
each
ten
shares
June
30.
Price—$20
then
held, with rights to expire on
per share.
Proceeds—For general
including property additions and
improvements, and repayment of advances to American
Telephone & Telegraph Co. Office—212 W. Washington
corporate
purposes,
St., Chicago, 111.
Underwriter—None.
Insured
Mortgages of America, Inc.
March 14 filed $1,000,000 of 5Vz% collateral trust bonds.
Price—At 100% of principal amount. Proceeds—To repay
temporary bank loans and to purchase additional in¬
sured mortgage loans, and for other corporate purposes.
Office—575 Colman Bldg., Seattle, Wash. Underwriter—
None.
International Properties, Inc.
April 20 filed 750,000 shares of common stock. Price—
$1.65 per share. Proceeds—To meet financial and loan
commitments of the company in connection with the
purchase of certain property. Office—1487 Northwest¬
ern
Bank
Company
Building, Minneapolis, Minn.
or
Underwriter-
selected dealers.
Interstate Finance
Corp. (6/16)
May 11 filed 150,000 shares of common stock. Price —
be supplied by amendment.
Proceeds—For general
funds and working capital.
Office—Evansville 8, Ind.
To
Underwriter—Goldman, Sachs & Co.
Price—
•
Per
•
Information Meeting—Scheduled for July
April 1 filed $376,000 of Limited Partnership Interests,
to be offered in units. Price—$500 per unit. Proceeds—
filed
Colo.
Ave., New York. Underwriter
New
28
it Helicopters, Inc.
May 19 (letter of notification) 60,000 shares of common
stock (par $1).
Price — $5 per share.
Proceeds — For
purchase of equipment, tools, inventory and working
capital. Office—Heliport, Stapleton Airfield, Denver 2,
Pensacola, Fla. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey, Stuart & Co., Inc.; The First Boston Corp.; Equi¬
table Securities Corp.; Kidder, Peabody & Co. and White,
Weld & Co. (jointly); Blyth & Co., Inc.; Merrill Lynch,
Pierce, Fenner & Smith Inc.; Salomon Bros. & Hutzler
and Drexel & Co, (jointly); Eastman Dillon, Union Se¬
—For
April
•
Harvey Aluminum (Inc.)
(6/22)
April 21 filed 750,000 shares of class A common stock
(par $1). Price—To be supplied by amendment. Proceeds
—For expansion and working capital. Office—Torrance,
Calif. Underwriters—Kuhn, Loeb & Co. and
Tucker, An¬
thony & R. L. Day, both of New York City.
Boulevard,
W Gulf States Utilities Co. (6/27)
May 25 filed $17,000,000 of first mortgage bonds,
<
•
writer—Mortimer
applied to the repayment of a portion of
company's short term bank borrowings. Underwriter
—The First Boston Corp., New York.
Proceeds—To
Place,
at the
$51 each. Debentures are convertible into common
office of Southern Services, Inc., Room 1600, 250 Park
stock at $1.50 per share. Also, 68,000 shares of common
Avenue, New York 17, N. Y., before 11 a.m., New York
stock (par 10 < cents) to be offered in units of pne/^51 :*.■ Time on
July 7, 1960.
debenture and 68 shares of common stock.
Price-^Of ic Gulf Power Co. (7/7)
debentures, at par; of stock, $102 per unit. Proceed^—
May 27 filed 50,000 shares of cumulative preferred stock
To pay off current accounts payable; purchase of^rpw
(par $100). Proceeds—Together with other funds, will
'materials and :for
expansion.
Office — 2730 Ludelle
be used for property additions and improvements and
Street, Fort Worth, Texas. Underwriter—R. A. Holman
for payment of $3,092,800 of bank loans. Underwriter—
& Co., Inc., New York, N. Y. Note—The name has bein
To be determined by competitive bidding. Probable bid¬
changed from Glass Magic, Inc.
^
ders: Harriman Ripley &
Co., Incorporated; Eastman
Glass
Marine
Industries, Inc.
^
Dillon, Union Securities & Co. and Salomon Bros. &
April 25 filed 200,000 shares of class A stock and 100,000
Hutzler
(jointly); Equitable Securities Corp.; Kidder,
shares of common stock. The class A stock is to be^ofPeabody & Co. and White, Weld & Co. (jointly). Infor¬
fered at $2.25 per share and the common at 75 cents per
mation Meeting—Scheduled for July 5, 1960 at 3:30 p.m.
share; and the class A and common shares are to.:.'be
New York Time, at the office of The Chase Manhattan
offered in units consisting of two class A and one com¬
Bank, Room 238, 43 Exchange Place, New York City.
mon.
Price—$5.25 per unit. Proceeds—To develop^the
Bids—Expected to be received at the office of Southern
necessary production facilities to produce the company's
Services, Inc., Room 1600, 250 Park Avenue, New York
boats. Office—Humboldt, Iowa.1 Underwriters—Leaaon
17, N. Y., before 11 a.m., New York Time on July 7,
& Co., Inc., Chicago, 111.; William B. Robinson & Co.,
1960.
•; ./ / ' /
:•,///;
'/„ V,
\
, X
Corsicana, Texas; and Bala William & Co., Wichita
Falls, Texas.
ceeds—To be
ment of
of
'
39
the
curities & Co.
and Idaho. Office — 1105 N. E. Broadway,
Ore. Underwriter — Fennekohl & Co., Inc.,
New York.
two
March 30
(6/20-24)
will be used to open two new stores
open¬
next
Beltsville, Md. Underwriter—None. Offering—Expected
July.
filed 180,000 shares oi common stock (no par)
of which 50,000 shares will be offered for public sale
bv the company and 130,000 are outstanding and will be
offered by the holders thereof. Price—To be supplied
bv amendment.
Proceeds—For expansion. Office—480
Boylston St.," Boston, Mass. Underwriter—Paine, Webber, Jackson & Curtis, Boston and New York.
• General Meters, Inc.
(6/15)
May 11 (letter of notification) 104,703 shares of common
stock (par SI) to be offered for subscription by stock¬
holders of record for a seven day period on the basis
of % of a share for each share held.
Price—$1.50 per
ance
the
in
ment arid
'
contemplates
balance of approximately
$182,000 will be added to gen¬
eral working
capital. Office—10501 Rhode Island Ave.,
share.
.
company
$1,200,000 of the pro¬
the offering will be used to finance the
pur¬
equipment and inventory for such stores. The
of
chase of
April 29
Proceeds—For construction, purchase of equip¬
working capital. Office—287-27 Road, Grand
Junction, Colo. Underwriter—Peters, Writer & Christensen, Inc., Denver, Colo.
>
^ / v
General Sales Corp. (6/20-24) :
April 28 filed 90,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—$75,000
will be used for additional working capital, inventories
and facilities for the Portland Discount Center; $75,000
for the same purposes in the Salem Center; and $50,000
to provide working capital for General Sales Acceptance
Corp. for credit sales to member customers.
The bal¬
The
additional supermarkets within
and one-half years.
Approximately
_
•
stores.
four
ing
Richter
*
new
(2399)
York
(managing)
New
City.
•
Itemco, Inc. (7/5-8)
April 29 filed 200,000 shares of common stock, Price—
$2.50 per share. Proceds—For repayment of outstanding
debt, for instrumentation and automation of laboratory
equipment, for expansion of existing manufacturing fa¬
cilities and the acquisition or establishment of additional
facilities, and the balance for working capital. Office—
18 Beechwood Avenue, Port Washington, N. Y. Under¬
writers—Morris Cohon & Company and Schrijver & Co.,
both
•
of
New
Kenrich
York.
(6/20-24)
convertible subordinated
debentures due 1970, and 55,000 shares of class A com¬
mon
stock.
Price—For debentures, 100% of principal
amount; and $3.50 per class A share. Proceeds—$10,000
will be applied towards the repayment of demand notes,
$115,000 for new plant facilities and equipment; and the
balance for general corporate purposes. Office—120 Wall
St., New York. Underwriter—First Philadelphia Corp.,
Petrochemicals, Inc.
March 29 filed $175,000 of 7%
New York.
Kings Electronics Co., Inc. (8/1-5)
May 26 filed 200,000 shares of common stock (par 10
cents) and 100,000 common stock purchase warrants.
Continued
on
page
40
The
40
Continued from page
in
stock
Meyers
to offer these securities for public
of one share of common
gan
units, each consisting
one-half
and
common
stock purchase
Thursday, June 2, 1960
, . .
&
debentures in the ratio of $100: principal
debentures for each 16 shares of common
stock then held; the subscription offer will expire July
scribe for the
amount
York City.
warrant.
Magnasync Corp.
Feb. 26 filed 200,000 shares
applied
Price—$4 per unit. Proceeds—$165,000 will be
to the repayment of certain loans, $75,000 for develop¬
ment and design work by a subsidiary in the field of
of capital stock.
Price
—
$5
instrumentation,
The new debentures which will be convertible
stock until maturity, Unless previously re¬
into common
deemed, will be entitled to an annual sinking fund com¬
mencing July 1, 1966, sufficient to retire approximately
93% of the debentures prior to maturity. Proceeds—For
interim loans up to $100,for expansion of labora¬
and personnel for research and develop¬
facilities
$100,000 to increase plant production facilities;
$116,000 for tooling and production of proprietary items;
$110,000 for increase of inventory; $75,000 for research
and development; and $2,000 for documentary stamps;
$110,000 will be added to working capital; and the re¬
maining $88,400 is unallocated. Office—5546 Satsuma
tory
of
11, 1960.
share. Proceeds—To repay
000 to Taylor & Co.; $100,000
per
$100,000 for continued re¬
search in the design, development and production of
components for microwave instruments, and the balance
for working capital. Office—40 Marbledale Road, Tuckahoe, N. Y.
Underwriters — Ross, Lyon & Co., Inc.;
Globus, Inc.; Reich & Co.; Harold C. Shore & Co. and
Godfrey, Hamilton, Magnus & Co., all of New York City.
infra-red
for work¬
Office—14637
Road, Detroit, Mich. Underwriters—:Peter Mor¬
Co., and Philips, Rosen & Appel, both of New
advances by two officers, and the balance
ing capital and other corporate purposes.
pay
39
The company proposes
sale
Chronicle
Commercial and Financial
(2400)
ment;
repayment of short-term
Boston Corp., New York,
ir Mississippi
Price—To be supplied by
1980.
To be
loans.
&
River Fuel Corp. (7/7)
$24,000,000 of sinking fund debentures due
1 filed
June
debt. Underwriter—The First
managing.
amendment. Proceeds—
outstanding bank
Union Securities
'•
/.
applied toward the reduction of
Underwriter — Eastman Dillon,
Co., New York.
_
'
-■
i;
.,
Electronics, Inc. (6/10)
Ave., North Hollywood, Calif. Underwriter—Taylor and
ir Model Finance Service, Inc.
April 20 filed a maximum of 100,000 shares of common
Company, Beverly Hills, Calif.
May 26 filed 100,000 shares of second cumulative pre¬
stock, to be initially offered to its stockholders. Price
ferred stock—65c convertible series, $5 par—and $1,000,Majestic Utilities Corp.
.—To be supplied by amendment.
Proceeds—For addi¬
000 of 6V2% junior subordinated debentures, due 1975.
April 29 filed $300,000 of 6% convertible 10-year de¬
tional working capital and expansion, and the balance
Price—To be supplied by amendment; Proceeds—To be
bentures, $250 face value, 30,000 shares of common stock,
if any, to reduce bank loans.
Office—1079 Common¬
and options to purchase an additional 30,000 shares;
It added to the company's general working funds. Office—
wealth
Avenue,
Boston, Mass.
Underwriter —Paine,
202 Dwight Building, Jackson, Mich. Underwriter—Paul
is proposed to offer these securities for public sale in
Webber, Jackson & Curtis, Boston and New York. * ••/>/
C. Kimball & Co., Chicago, 111.
units (1,200), each consisting of $250 face amount of de¬
ir Laclede Gas Co.
bentures, 25 shares of common stock, and options to
• Monowall Homes,
Inc. (6/15)
June 1 filed $10,000,000 of first mortgage bonds. Proto purchase an additional 25 common shares.
Price— April 22 (letter of notification) 150,000 shares of com¬
eeeds
Together with the proceeds from the sale of
$350 per unit. Proceeds—To be applied in part payment
mon
stock (par 10 cents).
Price—$2 per share. Pro¬
'common stock, will be applied towards the repayment
of a $250,310 bank loan and the balance to be added to
ceeds—To pay an outstanding note, purchase of land,
of bank loans incurred in connection with the company's
working capital and used for general corporate pur¬
equipment and for working capital. Office—546 Equi¬
construction program for additions to the company's
poses. Office — 1111 Stout Street, Denver, Colo.
Under¬ table Building, Baltimore 2, Md. Underwriter—Ameri¬
working capital, to be used for construction and gen¬
writer—Purvis & Company, Denver, Colo. Offeringcan Diversified Securities, Inc., Washington, D. C.
eral corporate purposes. Underwriter—To be determined
Expected sometime in July.
by competitive bidding'. Probable bidders: Halsey, Stuart
Montgomery Ward Credit Corp. (6/27-7/1)
Martin-Parry Marine Corp.
(G/20-24)
&. Co. Inc.; Stone & Webster Securities Corp.; Lehman
May 5 filed $50,000,000 of debentures, 1980 series. Price
May 10 (letter of notification) 240,000 shares of common
Brothers, Merrill Lynch, Pierce, Fenner & Smith Inc.
—To be supplied by amendment. Proceeds—To be added
stock (par 10 cents). Price—$1.25 per share. Proceeds—
and Reinholdt
& Gardner (jointly); Eastman Dillon,
to general funds and will be available for the purchase
For general corporate purposes.
Office — 415 Madison
Union Securities & Co.
,of deferred payment accounts from Montgomery Ward
Ave., New York, N. Y. Underwriter—Edward H. Stern
ir Laclede Gas Co. (7/8)
& Co., Inc. Office—100 West Tenth St.,
Wilmington,
& Co., 32 Broadway, New York 32, N. Y.
June 1 filed a maximum of 243,600 shares of common
Del. Underwriter—Lehman Brothers, New York.
Mattel, Inc. (6/6-10)
stock (par $4), to be offered to stockholders on the basis
Movielab Film Laboratories Inc. (6/20)
April 18 filed 300,000 shares of common stock, (par $1),
of one additional share for each 14 shares of common
of which 50,000 shares are to be offered for public sale
May 4 filed 100,000 shares of class A common stock (par
stock held of record at the close of business on July 8,
for the account of the issuing company and 250,000 shares
$1) including 62,500 shares to be offered for public sale
I960. Price—To be supplied by amendment. Proceeds—
now outstanding, by the holders
thereof. Price—To be
by the company and 37,500 shares which are outstanding
Together with the proceeds from the proposed sale of
and will be offered by the holder thereof. Price—To be
supplied by amendment. Proceeds—For additional work¬
the first mortgage bonds will be applied toward repay¬
ing capital. Office—5150 Rosecrans Avenue, Hawthorne,
supplied by amendment. Proceeds—For general corpo¬
ment of bank loans incurred in connection with the com¬
rate purposes. Office—619 West 54th St., New York. Un¬
Calif. Underwriter—Bache & Co., New York.
pany's construction program and for additions to the
derwriter—Granbery, Marache & Co., New York.
McCormick Selph Associates, Inc.
company's working capital, to be used for construction
and other corporate purposes. Underwriters — Lehman
April 15 filed 130,000 shares of capital stock, of which
Mustang Lubricant, Inc.
Brothers and Merrill Lynch, Pierce, Fenner & Smith
100,000 shares will be offered for public sale by the is¬
May 9 filed 80.000 shares of class A common stock.
suing company and 30,000 shares, being outstanding, by
Inc., both of New York, and Reinholdt & Gardner, St.
Price—$5 per share. Proceeds—For general corporate
the holders thereof. Price—To be supplied by amend¬
Louis, Mo.
purposes.
Office—Denver, Colo. Underwriter—To be
ment. Proceeds—To reduce outstanding indebtedness, to
Lamtex Industries, Inc.
(6/27-7/1)
supplied by amendment.
reduce accounts payable, and for additional working
May 13 filed 100,000 shares of common stock. Price—
• Namm-Loeser's Inc.
(7/5-8)
capital. Office—2308 San Felipe Rd., Hollister, Calif. Un¬
$5 per share. Proceeds—For general corporate purposes.
April 27 filed 217,278 shares of common stock (par $1).
derwriter—Wilson, Johnson & Higgins, San Francisco,
Office
Motor Ave., Farmingdale, Long Island, N. Y.
The company proposes to offer 108,000 shares of new
Calif.
'
Underwriter—Finkle, Seskis & Wohlstetter, of N. Y. City
common stock for subscription by holders of outstand¬
• McGowen Glass Fibers Corp.
(6/6-10)
Lasco Industries
ing stock of record May 31, at the rate of one new share
April 27 (letter of notification) 150,000 shares of com¬
April 29 (letter of notification) 150,000 shares of com¬
for each three shares held. Arebec Corp., of New York,
mon
stock (par one cent). Price—$2 per share.
Pro¬
mon stock (no par). Price—$2 per share. Proceeds—To
which owns 109,278 common shares, has entered into
ceeds— For general corporate
purposes. Office — 829
an
pay for a new building. Office—2939 S. Sunol Dr., Los
agreement to sell said shares to the underwriter.
Newark Avenue, Elizabeth, N.
J. Underwriter—Sim¬
Angeles, Calif. Underwriter—Holton, Henderson & Co.,
Price—To be supplied by amendment. Proceeds—To be
Los Angeles, Calif.
mons, Rubin & Co., Inc., New York, N. Y.
added to company's general funds and will enable it to
• Medallion Pictures Corp.
(6/6-10)
use all or part of the proceeds in the reduction of bank
ir Lee Filter Corp.
March 29 (letter of notification) $300,000 of 6y2% con¬ ^indebtedness. Office —>2301 Woodward Ave., Detroit,
May 27 filed 110,000 shares of capital stock (par $1).
vertible subordinated debentures due March 30, 1968.
Mich. Underwriter—Ladenburg, Thalmann & Co., New
Price—To be supplied by amendment. Proceeds—About
Price—At 100%. Proceeds—For general corporate pur¬
York.
.$250,000 will be used to discharge bank loans, the pro¬
ceeds of which were used to provide additional working
poses. Office—200 W. 57th Street, New York 18, N. Y.
National Lawnservice Corp. (6/6-10)
Underwriter—Hancock Securities Corp., New York, N. Y.
capital and to discharge other short-term indebtedness;
Jan. 11 (letter of notification) 100,000 shares of com¬
Miami Tile & Terrazzo, Inc.
mon
stock (par one cent). Price—$3 per share.
$100,000 for construction and purchase of additional
Pro¬
March 11 filed 125,000 shares of common stock (par $1).
ceeds— For general corporate purposes.
tools, dies and machinery and additions to raw material
Office — 410
inventory; and the balance for general corporate pur¬
Price—$4 per share. Proceeds—$150,000 as reduction of
Livingston Avenue, North Babylon, N. Y. Underwriter
—Fund Planning Inc., New York, N. Y.
poses. Office—191 Talmadge Road, Edison, N. J. Under¬
temporary bank loans, $140,000 in reduction of accounts
writer—Myron A. Lomasney & Co., New York.
payable, $65,000 to repay notes and loans payable to
National Old Line Life Insurance Co. (6/6-10)
Barney B. and Nathan S. Lee. and the balance for gen¬
Lee Motor Products, Inc. (6/27-7/1)
April 12 filed 128,329 shares of class BB (non-voting)
eral corporate purposes.
Office—6454 N. E. 4th Ave.,
common stock, of which 43,329 shares are to be offered
May 6 filed 167,000 shares of class A common stock (par
Miami, Fla. Underwriter — Plymouth Bond & Share
for the account of the issuing company and 80,000 shares
$1). Price—$3 per share. Proceeds—$150,000 will be used
Corp., Miami. Fla.
;
: V
to repay existing obligations to banks incurred in March
representing
outstanding
stock,
are
to
be ; offered
Midwest Technical Development Corp.
of 1960 to retire trade accounts and for other working
for the account of the present holders thereof. Price(6/13-17)
capital purposes; approximately $50,000 will be used
To be supplied by amendment. Proceeds — For general
to finance expansion of warehouse facilities; and the
May 17 filed 561,500 shares of common stock, to be of¬
corporate purposes. Office — Little Rock, Ark, Under¬
balance of $207,000 will be added to the company's gen¬
fered to holders of the outstanding common on a onewriter—Equitable Securities Corp., Nashville, Tenn.
•
for
Laboratory
—
•
-
-
—
,
.
as working capital. Office — 4701
Cleveland, Ohio. Underwriter—Godfrey,
Hamilton, Magnus & Co. Inc.. New York.
eral funds and used
.Gladstone Ave.,
Liberian
.
Iron
Ore Ltd.
joined with The Liberian American-Swedish
Minerals Co., Monrovia, Liberia, in the filing of $20,000,000 of 6V4% first lien collateral trust bonds, series A,
due 1980, of Lio, $20,000,000 of 6^4% subordinated de¬
May
19
bentures
due
shares of Lio
1985 of Lio. and unspecified number of
capital stock, to be offered in units. Also
for-one
basis. Price
—
To be
supplied by amendment.
Office—Min¬
neapolis, Minn. Underwriters—Shearson, Hammill & Co.,
New York City, and Piper, Jaffray & Hopwood, Min¬
Proceeds—For general corporate purposes.
neapolis.
Midwestern
Gas Transmission
Co.
(6/7)
22 filed $60,000,000 of first mortgage pipe line
bonds, series due June 1, 1980, with attached warrants
for the purchase of 240,000
shares of common stock
April
(par $5). The bonds will be offered in denominations
$1,000 with attached warrants for the purchase of
of common stock at $15 per share on and
included in the registration statement are $20,000,000 of
of
6Vi% secured promissory notes, series A, of Lamco and
four shares
$20,000,000 of 6y4% subordinated debentures of Lamco.
Price—For units, to be supplied by amendment.
Pro¬
after Jan.
ceeds—To make loans to Lamco. Office—97 Queen St.,
Charlottetown,
Prince
Edward
Island,
Canada,
N.
S.
Underwriter—White, Weld & Co., Inc., New York.
Liberty Records, Inc.
(6/6-10)
1973. Price—To be
supplied by amendment.
Proceeds — To finance con¬
struction of two natural gas pipe line systems. OfficerTennessee Building, Houston, Texas.
Underwriters —
Stone & Webster Securities Corp.; White, Weld & Co.,
and Halsey, Stuart & Co. Inc., all of New York.
1, 1964 through Dec. 31,
Midwestern Indemnity Co.
April 1 filed 150,000 shares of common stock (par 50c).
Price—Approximately $8.00 per share. Proceeds—To be
added to the company's general corporate funds, sub¬
stantially to meet increased demands on working cap¬
ital.
Office—6920 Sunset Boulevard, Los Angeles, Calif.
mon
Underwriter
held. Price—$17 per
—
Crowell, Weedon & Co., Los Angeles,
Lite-Vent
Industries, Inc.
(6/6-10)
March 25 filed 100,000 shares of common stock (par $1).
Price
$5.20 per share. Proceeds—To be added to com¬
pany's general funds, of which $200,000 will be used for
repayment of indebtedness, $45,000 to acquire additional
roll forming machinery and equipment, $74,000 to re¬
stock
(letter of notification) 15,832 shares of com¬
(par $5) to be offered for subscription by
stockholders of record at the close of business on March
4,
1960 in the ratio of one share for each three shares
ital.
Calif.
•
March 25
share. Proceeds—For working cap¬
Address—Cincinnati, Ohio. Underwriter — W. D.
Gradison &
Miles
May
18
debentures
due
1980.
The
of convertible
company
pro¬
to offer to the holders of its outstanding common
stock of record on or about June 24, 1960, rights to sub¬
poses
National
Packaging Corp.
(6/9-10)
60,000 of common capital stock (par $1).
Price—$6 per share. Proceeds—To retire $87,000 of in¬
debtedness, to purchase $18,000 of additional machinery
and equipment, to set up a small-plant: (at cost of
$28,000) on the West Coast to service the fruit tray and
vegetable tray business in that area, and for working
capital. Office — 3002 Brooklyn Ave., Fort Wayne, Ind.
Underwriter—First Securities Corp., 212 W. Jefferson St.,
Ft. Wayne, Ind.
National
March
Union
Life
Insurance Co.
29
(letter of notification) 50,000 shares of com¬
mon stock
(par 50 cents). Price—$4 per share. Proceeds
—For expenses in the operation of an insurance com¬
pany. Address—Montgomery, Ala.
Underwriter—Frank
B. Bateman, Ltd., Palm Beach. Fla.
Navigation Computer Corp. (6/27-7/1)
May 18 filed 50,709 shares of common stock (no par)be supplied by amendment. Proceeds—To be
added to the general funds of the company and used for
general corporate purposes. Office—1621 Snyder Ave.,
Price—To
Philadelphia, Pa.
Underwriters—Drexel & Co.
and Ete-
Haven &
Townsend, Crouter & Bodine, I both of
delphia, Pa.
Phila¬
Nebraska Consolidated Mills Co.
Co., Cincinnati, Ohio.
Laboratories, Inc. (6/24)
filed approximately $8,300,000
subordinated
•
March 30 filed
May 11 filed 111,951 shares of common stock, to be of¬
fered for subscription by holders of outstanding common,,
at the rate of
Price
—
one
new
$10 per share.
share for each four shares
Proceeds
—
To be added
held.
to the
general funds of the company and will be used to fii
.
.
.
The Commercial and
and accounts receivable.
inventories
inreer
Number 5956
191
Volume
Office—
North 16th St., Omaha, Neb. Underwriter—None.
New Britain Gas Light Co.
(7/8)
Wav 18 filed a maximum of 16,000 shares of common
stock (par $25), to be offered to holders of the outstand¬
ing common on the basis of one new share for each five
chares held. Price—To be supplied by amendment. Pro¬
ceeds—To discharge bank loans, for construction, and for
general corporate purposes. Office—New Britain, Conn.
Underwriter—Putnam & Co., Hartford, Conn,
x New Britain
R/Bachine Co.
May 20 (letter of notification) 3,000 shares of common
stock (par $10) to be offered to employees. Price—At the
over-the-counter market price determined by mean
between bid and ask price for the week ending May 28,
I960. Proceeds—To purchase stock. Address—New Brit¬
ain, Conn. Underwriter—None.
• New Jersey Power & Light Co.
(7/19)
May 24 filed $5,000,000 of first mortgage bonds, due
1990. Proceeds—For construction and reduction of in¬
debtedness. Office—Denville, N. J. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co., Lehman
Brothers and Salomon Bros. & Hutzler (jointly); Equi¬
table Securities Corp.; First Boston Corp.; Merrill Lynch,
Pierce, Fenner & Smith Inc.; Eastman Dillon, Union
Securities & Co., and White, Weld & Co. (jointly), Bids
—Expected to be received on July 19 up to 11 a.m. EDT.
3521
Newton Fund, Inc.
May 26 filed 245,000 shares of capital stock. Price—$20
per share. Proceeds — For investment. Office — 759 N.
Milwaukee St., Milwaukee, Wis. Manager and Invest¬
ment Adviser—Newton & Company. Underwriter—None.
•
Co. (6/6)
420,945 shares of common stock (par $1).
The company proposes to offer 142,860 shares for cash sale
at $7 per share. Additional shares (amount unspecified)
are to be offered in exchange for outstanding shares of
North Central Life Insurance Co., of St. Paul.
The rate
of exchange is to be supplied by amendment. Proceeds
—To be added to the general funds of the company.
Office—335 Minnesota St., St. Paul, Minn. Underwriter
North Central
•
March 11 filed
,
.
North
certificates.
discount of
of
$1,600,000
first mortgage participation
Price—The certificates will be offered at a
from face value.
17.18%
Proceeds—For the
primary purpose of refinancing existing loans. Office—
1160 Rockville Pike, Rockville, Md.
Underwriter—In¬
Securities, Inc.
vestor Service
^Northern Illinois Gas Co. (7/13)
May 27 filed $30,000,000 of first mortgage bonds due 1985.
Proceeds—To be applied to the retirement of not to ex¬
$5,000,000 of bank loans to be obtained for tem¬
financing of part of the company's new construc¬
to increase working capital for application to
porary
tion
bonds
due
June
15,
1975.
Price
To
be
supplied by
To be' advanced by the City's
Loan Fund to the Oslo
Electricity Works, the Oslo Har¬
bor
Authority and the municipal tramway companies
amendment. Proceeds
—
—
for
capital expenditures to be undertaken by these mu¬
nicipal enterprise. Underwriters—Kuhn, Loeb & Co.,
Harriman Ripley & Co., Lazard Freres &
Co., and Smith,
Barney & Co., all of New York.
•
OU
Chemical
March
17
Co.
(6/6-10)
$450,000 of convertible
filed
subordinated
debentures due June 1, 1970.
The company proposes to
offer the debentures for
subscription by common stock¬
holders
of
record
June
1,
1960,
the
at
rate
of
a
$100
debenture for each 3.11
expire
shares t.hen held with rights to
10. Price
100% of principal amount.
June
on
Proceeds
—
For
—
retirement
of
note, for additional
improvements to properties, for equipment and the bal¬
ance for
working capital and other purposes. Office—500
Agard Road, Muskegon, Mich. Underwriter — H. M.
Byllesby & Co., Inc., Chicago, 111.
a
™°xf®rd Manufacturing Co., Inc. (6/13-20)
May 3 filed 240,000 shares of class A common stock (par
$1), of which 160,000 shares are now outstanding and
to be
are
offered for public sale by
the present holders
remaining 80,000 shares will be offered
issuing company.
Price — To be supplied by
be
deter¬
•
Northwest Natural
Gas
Co.
(6/24)
struction
Office—Portland, Ore. Underwriter
—Lehman Brothers. New York City.
certain
•
Pacific
April
19
Coast
filed
new
Properties,
Inc.
being offered at $10 per
share to the holders of Food Giant Markets, Inc. common,
preferred, and employee stock options on the basis of
one right for each share of Food Giant common held or
subject to option of record May 26. One right will be
917,835
issued
for
May 26,
on
each
June
shares
shares
2
with all
of
—
preferred
of
expire
at 3:30 p.m.
$906,000 toward cost of
rights to
Proceeds
10.
Giant
Food
acquisition and the remainder for general
corporate purposes. Office—Beverly Hills, Calif. Under¬
writer—Bear, Stearns & Co.
property
Telephone
Co.
Nuclear Engineering Co., Inc.
April 18 (letter of notification) 30,000 shares of common
stock (par 33.3
cents). Price—$10 per share. Proceeds
-~T°
replace bank financing,
reduce accounts payable,
purchase machinery and equipment and for working
capital. Office—65 Ray St., Pleasanton, Calif. Under¬
writer—Pacific Investment Brokers, Inc.^ Seattlie, Wash.
Obear-Nester Glass Co.
(6/13-17)
April 14 filed 210,045 shares of common stock
Price
(no par).
To be
supplied by amendment. Proceeds — To
selling stockholders. Office—Broadway and 20th, East
Louis, 111. Underwriter—Merrill Lynch, Pierce, Fenner
—
& Smith
Pacific
Panel
Co.
Feb. 8 filed 100,000 shares of class A common- stock,
subsequently increased to 150,000 shares (par 50 cents).
Price—$3.
Proceeds—For reduction of indebtedness,
for
for establishment of'Three- addi¬
tional outlets and to provide additional working capital
for a new subsidiary.
Office—1212 West 26th Street,
capital;
working
Vancouver, Wash.
Underwriter—Frank Karasik & Co.,
Note—This statement
Inc.
•
Pan
American
of
Parker
was
withdrawn
on
May 26.
Envelope Co.,
Inc.
(6/7)
a
loan,
(A. J.)
Inc., New York.
March
30
filed
he
oy
of its outstanding common
be
stock,
subscription date and record date will be supplied
amendment.
general
Price—$2.50
corporate
purposes.
Beverly Hills, Calif.
•OK
share.'Proceeds—For
Office—9489 Dayton Way,
per
Underwriter—None.
Rubber
Welders, Inc. (6/20-24)
1
™r' ™
50,000 shares common stock (par $10). Price
.7° °e supplied by amendment. Proceeds—Together
V1m the
proceeds of a $1,100,000 insurance company
i0an
aPd $700,000 realized from the sale of installment
htta
wholly-owned susbidiary finance company,
K
Acceptance Corp., will be used to reduce bank loans
in
amount of $1,300,000; to repay other indebtedness
"J the amount of $228,600; and the balance of approxietfi $800,000 will be added to working capital. Office
Ypl Rio Grande Avenue, Littleton, Colo. Underwriter
Bosworth, Sullivan & Co., Inc., Denver, Colo.
+U
"
IVIetals,
(6/6-10)
Inc.
(letter of notification) 100,000 shares of com¬
mon
stock (par 10 cents).
Price—$3 per share. Pro¬
ceeds—To retire outstanding bank loans, inventory pur¬
chases, expansion and for working capital. Office—1900
N. E. Miami Court, Miami, Fla. Underwriter—Hancock
Securities
Corp., New York, N. Y.
Polycast Corp.
(6/27-7/1)
convertible subordinated
71,364 shares of common stock, of which
debentures and 20,000 shares of common stock will
the
exercise
issuable upon the
remaining 36,364 shares
conversion of the debentures. Price—
publicly; 15,000 shares are
warrants
of
issuable upon
are
the
and
stock will be
used in part
($325,000) to purchase equipment, and the balance will
be used for working capital purposes. Office—69 Southfield Ave., Stamford, Gonn. Underwriters—M. L. Lee &
Co., Inc. and Milton D. Blauner & Co., Inc., both of
debentures, 100%; price for common
supplied by amendment. Proceeds—To be
For
New York.
•
(6/27-7/1)
Corp.
Ultrasonics
Powertron
May 19 filed 205,000 shares of common
stock. Price—$2
share. Proceeds—For retirement of
outstanding in¬
per
debtedness, and the balance will be used for working
capital. Office—Roosevelt Field Industrial Park, Garden
City, L. I., N. Y. Underwriter—None.
Fund
Provident
Dec. 23
for
Income,
Inc.
400,000 shares of common
filed
a
loan, expansion of sales, personnel, advertising, devel¬
working capital. Office—
Belmont Avenue, Philadelphia, Pa.
Underwriter
dress.
•
Patrick County
March 25 filed
Price—
share. Proceeds—About $162,000 will be applied
payment of certain indebtedness; $25,000 for ad¬
ditional
machinery and equipment; and $118,752 for
$3
per
to the
working
52
Office—
Everett
Inc., New York. Offering—Expected some¬
capital, promotion and advertising.
New York. Underwriter — G.
Broadway,
Parks &
Co.,
time in August.
^
^ Pauley Petroleum Inc.
(7/11)
.
y/
^
filed $10,000,000 of subordinated debentures
(convertible) due 1976.
Price — To be supplied by
amendment. Proceeds—$7,000,000 will be applied to the
May
27
payment of bank borrowing incurred in connection with
the company's Mexican Tidelands operations and to the
reduction of current liabilities.
The balance will be
of the company and will be
corporate purposes. Office—717 No.
Highland Avenue, Los Angeles, Calif.
UnderwriterWilliam R. Staats & Co., Los Angeles, Calif.
added to
the general funds
available for general
Corp.
(7/11-15)
March 30 filed 50,000
shares of common stock.
Price—To
amendment. Proceeds—$60,000 will be
utilized to repay the company's indebtedness to Busi¬
ness Development Co. of Rhode Island; the balance will
be added to working capital for general corporate pur¬
poses, principally to finance
inventory and for other
manufacturing costs. Office—1 Constitution St., Bristol,
R. I. Underwriter—R. A. Holman & Co., Inc., New York.
be
supplied by
Pennsylvania Company
(6/6)
filed $35,000,000 of collateral trust bonds, due
1985. The bonds are to be secured by the pledge of 1,400 000 shares of common stock of Norfolk & Western
May
23
entitled to a sinking fund calculated to retire
92% of the issue prior to maturity. Price—To be sup¬
plied by amendment. Underwriters — The First Boston
Corp.; Glore, Forgan & Co. and Salomon Bros. & Hutzler,
Ry.'and
are
all of New York.
,
Electric Co.
April 1 filed 89,675 shares of common
to
holders
warrants at the rate of one
stock to be issued
outstanding stock purchase
of the company's
share for each warrant at a
price of $3.25 per share. The warrants were issued in
May, 1954, in connection with a previous pub¬
lic offering and included 46,000 to the underwriter, S.
D. Fuller & Co., and 46,000 to the company's officers
and after
and
employees.
At
warrants
until June 25,
Offering—Ex¬
present there are 89,675
outstanding. The warrants are exercisable
.1960.
Office—52 Broadway, New York.
pected sometime in June.
Rajac Self-Service, Inc. (7/11-15)
18 (letter of notification) 100,000
March
shares of com¬
cents). Price—$3 per share. Proceeds
—For general corporate purposes.
Office—11 E. Second
Street, Mt. Vernon, N. Y. Underwriter—Walter R. Blaha
& Co., Inc., Long Island City, N. Y.
stock (par 10
Reeves
Broadcasting &
Development Corp.
y;/
(6/13-17)
■
487,392 shares of common
4
stock, of which
300,000 shares are to be publicly offered and 187,392
shares are to be purchased by Christiana Oil at $4.75
per share ...and distributed as
a dividend to its 2,800
March 30 filed
Canning Co., Inc.
140,000 shares of common stock.
Offering—Expected in late June.
Pyramid
1238
—Metropolitan Securities, Inc., Philadelphia, Pa.
stock (par $1).
in¬
Paad¬
supplied by amendment. Proceeds—For
vestment. Office—3 Penn Center Plaza, Philadelphia,
Underwriter—Provident Management Corp., same
opment and research and for
Pearson
300,000 shares of common stock, to
ottered to the holders
Pioneer
mon
Co.
May 11 (letter of notification) 100,000 shares of common
(no par). Price—$3 per share. Proceeds—To repay
Shale Corp.
,
•
April 20
Price—To be
•
stock
(6/6)
May 13 filed $45,000,000 of 38-year debentures, due
1998. Proceeds—The company intends to use a portion
of the net
proceeds of the sale of the debentures to re¬
pay some $24,600,000 of advances from its parent, Amer¬
ican
Telephone & Telegraph Co. and to deposit the bal¬
ance in
its general funds.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; The First Boston Corp.; Morgan
btanley & Co.; Eastman Dillon, Union Securities & Co.
Bids—Expected to be opened on June 6, up to 11:30 a.m.,
i\ew York
Time, at Room 2315, 195 Broadway, N. Y. City.
Bell
to the
Bldg.,
Manila, Philippines. Underwriter—None.
be offered
in
manufacturing plant facilities,
construction of which has been completed; the balance
of the proceeds will be used for general corporate pur¬
poses.
Office—151 Spring Street, N. W., Atlanta, Ga.
Underwriters—W. C. Langley & Co., New York; and
Courts & Co., Atlanta and New York.
purposes.
Northwestern
supplied by amendment. Proceeds—To be added
company's working capital. Office — Soriano
installed
equipment mortgages, purchase of
new folding and printing equipment, inventory, promo¬
tion and advertising, etc. Office—6700 N. W. 35th Ave.,
Miami, Fla. Underwriter — Merritt, Vickers, Inc., New
York, N. Y.
May 25 filed 60,000 shares of preferred stock (par $100).
Price—To be supplied by amendment. Proceeds—To re¬
tire $5,000,000 of bank loans and the balance for con¬
Philippine Oil Development Co., Inc.
103,452,615 shares of capital stock, to be
offered for subscription by stockholders at the rate of
one new share for each 5V2 shares held. Price — To be
March 30 filed
Proceeds—$150,000 will be used for thel
purchase of additional machinery and equipment to be
payment
EDST.
rights
Price—$75 per/share.
debentures and
13,
a.m.
15.
with
held
May 19 filed $400,000 of 6%%
the
May 10 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
to 11:00
y
tcf expire at 3:30 p.m. (EDT) on
Proceeds—$1,100,000 will
be used to repay in pant short-term bank loans of $1,600,000 incurred during 1959 to provide funds for the
company's continuing program of modernization, im¬
provement and expansion; the balance of the proceeds
will be added to its general funds.
Office—218 South
Washington Street, Butler, Pa. Underwriter—None.
then
June
by
amendment.
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co., Inc. group. Bids—To be received on July
up
of common stock (par $50)
being offered to stockholders of record on May 13, 1960,
at the rate of one additional share for each two shares
•
and
construction-expenditures.. Underwriter—To
41
Peoples Telephone Corp.
March 29 filed 15,250 shares
thereof and the
EDT.
Washington Land Co.
filed
3
ceed
•
..
.
(2401)
Oslo (City of)
Norway (6/21)
May 24 filed $10,000,000 of sinking fund external loan
record
—None.
May
Financial Chronicle
Price—$5
stockholders.
per
share.
Proceeds—To pay
$110,000 bank note and for general corporate purposes.
Office—304 East 44th St., New York.
UnderwriterLaird & Co. Corp., New York.
a
(6/6-10)
stock (par $5),
of which 40,000 shares are to be offered for public sale
for account of company.
The remaining 110,000 shares
are now
outstanding and are to be offered for sale by
the present holder thereof.
Price—To be supplied by
amendment.
Proceeds—For repayment of short-term
bank debt. Office—350 Fifth Ave., N. Y.
Underwriter
—Glore, Forgan & Co!, New York.
Republic Ambassador Associates
April 29 filed $10,000,000 of Limited Partnership In¬
terests, to be offered in units. Price—$10,000 per unit.
Proceeds—To purchase hotels in Chicago from a Webb
& Knapp subsidiary.
Office—111 West Monroe Street,
Chicago, 111.
Underwriter—Lee Higginson Corp., New
York.
Offering—Expected in late June.
•
Reliance
Manufacturing
March 28 filed 150,000
•
Co.
shares of common
Republic Graphics Inc.
(6/13-17)
of
Proceeds—
April 29 (letter of notification) 75,000 shares
common
stock (par 10 cents).
Price—$4 per share.
For
general corporate purposes.
Office —134 Spring
Underwriters—Theodore Arnn
New York, N. Y.; T M.
Martin Associates, Inc.,
Street, New York, N. Y.
& Co., Inc., 82 Beaver Street,
Kirsch & Co., and Robert A.
New York,
N. Y.
TV, Inc.
277,000 shares of common stock, of which
shares are to be offered for public sale by the
Roller Derby
March 30 filed
117 000
shares will
stockholders.
Proceeds—For
issuing company, and the remaining 145,000
be sold for the account of certain selling
Price—To
be
supplied by
amendment.
Continued
on
page
42
production
purposes relating to the
and sales of motion picture films of the Roller
and the balance for working capital. Office—4435
ley Ave., Encino, Calif.
Derby,
Wood-
•
March 29 filed
Underwriter—To be supplied by
issued
be
for
exchange
in
common
$1) to
shares
for working
and preferred
officer's loan, and general corporate
purposes.
Office—93 Worth Street, New York. Under¬
writer—Morris Cohon & Co., New York. Offering—Ex¬
of
repayment
an
pected in mid-July.
S.A.F., Ltd.
partnership interests, to be of¬
Proceeds—
acquire fee title to certain land in St. Augustine, Fla.,
upon which will be constructed a 54-unit Howard John¬
son Motor Lodge and restaurant, swimming pool and re¬
lated facilities. Office—60 East Coral Center, Fort Lau¬
derdale, Fla. Underwriters—Radice Securities Corp. and
Jerry Thomas & Co., Inc., Palm Beach, Fla.
May 6 filed $303,000 of
fered for sale in units.
Price—$500 per unit.
To
#
Safticraft
(6/13-17)
Corp., Patterson, La.
April 29 filed 27o,uo0 shares ot common stock (par 10
cents).
Price—$3 per share.
Proceeds—The company
to use $50,000 to expand its efforts in the sale
boats nationally; $250,000 for reduction of
short-term borrowings; and the remaining $293,500 to
be advanced to du Pont, Inc. as additional working cap¬
proposes
of Safticraft
in the financing of increased inventories
and receivables incident to the increased sales volume of
ital
necessary
Underwriter
Dupont.
—
O'Neill
George,
&
vertible
working capital.
stock, of whicn
Co., Inc.,
Co. (7/6)
debentures due July 1,
Inc., Los
pay
$9
and
1985.
floor, New York
19th
30
March
$1) constituting its first public offering, of which
shares are to be offered for public sale by the
underwriters
gregate price of
.
(5/31-6/3)" April 15 filed 250,000 shares of
Price
$5 per share. Proceeds
(6/16)
Savannah Electric & Power Co.
<
May 11 filed $5,000,000 of first mortgage bonds, due
1990, and $3,000,000 of debentures, due June 1, 1985.
Proceeds—For payment of outstanding notes and for
construction expenses.
Office—Savannah, Ga. Under¬
writer
To be determined by competitive bidding.
(6/20-24)
$20,000,000 of senior notes, due June 1, 1980
and 150,000 shares of common stock (par $9). PriceTo be supplied by amendment. Proceeds—To be added
to the company's general funds and be available for gen¬
—
& Co. Inc.; Kidder,
Peabody & Co. and White Weld & Co. (jointly); The
First Boston Corp.; Merrill Lynch, Pierce, Fenner &
Smith Inc. Bids—To be received on June 16 up to 11 a.m.
EDT at 90 Broad St., New York City, 19th floor. Infor¬
mation Meeting—June 14 at 2:30 p.m. EDT.
bidders:
Probable
Halsey,
Savannah Newspapers,
Stuart
(6/8)
Inc.
April 20 filed 480,000 shares of common
stock (par $1).
20,000 or more; other¬
wise $5.55 per share. Office—Savannah, Ga. Underwriter
—Johnson, Lane, Space Corp., Savannah, Ga.
Price—$5.25 per share in lots of
(6/20-24)
May 9 filed 150,000 shares of common stock. Price—$2
per share. Proceeds—For working capital. Office—PanAmerican Bank Bldg., Miami, Fla. Underwriter—John R.
Sea-Highways, Inc.
Maher
•
Associates, of New York.
•
New York.
share,
or $10 for the unit. Proceeds—To complete construction
of new shopping centers. Office — 619 Powers Bldg.,
Rochester, N. Y. Underwriter—John R. Boland & Co.,
Inc., New York. Offering—Expected mid-to-late July.
$7 per share and one class A share at $3
per
Security Industrial Loan Association
(6/13-17)
April 13 filed $500,000 of 7% convertible subordinated
debentures due May 1, 1975, and 50,000 shares of com¬
mon stock. Prices—To be supplied by amendment. Pro¬
Citrus
Witter
Teleregister Corp. (6/7)
30 filed $6,000,000 of 6% subordinated sinking
fund debentures, due May 1980 (with attached warrants)
rities
Service
Instrument
Corp.
outstanding at the date of the stock offering; to
in the capital stocks of six of the company's
seven
bank
subsidiaries; to repay a bank loan of $6,400,-
000; to add to working capital; to retire certain longterm indebtedness; and to develop citrus groves.
Office
—-250 South East First Street, Miami, Fla. Underwriter
Offering—Indefinite.
Union Gas Co.
bank
000
of
$12,000,000 of sinking fund debentures,
be supplied by amendment.
Pro¬
the
balance
the repayment of $4,000,-
borrowings for construction purposes, and
will be used for further construction ex¬
penditures in 1960. Office—Fidelity Union Tower, Dallas,
Texas. Underwriters—A. C. Allyn & Company, Incorpo¬
rated, New York and Chicago, and Snow, Sweeney &
Inc., New York.
Co.,
Servonics, Inc.
Feb.
25
filed
76,600
shares
of
common
being offered to stockholders. The
transferable subscription warrants
stock
company
(par $1)
will
issue
evidencing (a) rights
to subscribe for one new share of common stock for each
shares held on the record date May 24
and (b)
the privilege of subscribing for such of the shares offered
as
are
not subscribed for upon the exercise of rights
five
sub£ct *° aM°tment with rights to expire
on
June
-$7 per share. Proceeds—For general corporate
Office—822 North Henry St., Alexandria, Va.
Dealer-Manager—Kidder, Peabody & Co., New York.
10. Price
purposes.
Shellmak
Corp.
Southwestern Oil
Producers, inc.
,
^2pJf"erf.f par ($2 per share). Proceeds—To
stock. Price
At notifi^tion> 150,000 shares of common
all of New
(A. G.)
pur¬
Spalding & Bros., Inc.
10 shares held
of record
June
Speed-Way Food Stores Inc. (6/6-10)
April 27 (letter of notification) 150,000 shares of com¬
stock
York
•
Va-
:*V
♦
credit
stock
(par $10).
•/
//••/V-'/
/,
';/.t
shares of common
s
Price—$11.50 per share.
Proceeds—To
loan, purchase equipment and-for inventories
and working capital. Address—Highway 92, Deland, Fla.
Underwriter—McCarley & Co., Inc., Asheville, N. C.
a
(par one cent). Price—$2 per share. Proceeds
general corporate purposes. Office—847 E. New
Avenue, Brooklyn, N. Y.
Underwriter
Krieger & Co., Inc., New York, N. Y.
•
Texas
Capital Corp.
May 4 filed 350,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To be
used
to
services
—
investment
provide
to
small
J.
J.
capital
business concerns.
Austin, Texas.
Blvd..
and management
Office—705 Lamar
Underwriter—Dempsey-Tegeler &
Offering—Expected in late June.
Fastern Transmission
Corp.
April 11 filed $25,000,000 of debentures, due 1980. Price
—To be supplied by amendment. Proceeds—For the re¬
duction of indebtedness and for construction expenses.
Office—Houston,
Texas.
Underwriter—Dillon, Read
Co., Inc., New York City. Note—This offering
indefinitely postponed.
-'V-.
•
(6/13)
13, 1960. Price—$20
per share. The Pyramid Rubber Co., the largest individ¬
ual stockholder, owning 178,978 shares, has agreed to
purchase at the offering price within five days after
the expiration of the subscription offer (June 30, 1960),
all of the stock not sold to the company's stockholders.
Pyramid Rubber may within 30 days thereafter resell
for investment at the offering price some of the stock
it shall acquire to other persons (not exceeding 15) who
may be stockholders, officers or directors of the com¬
pany. Office—Chicopee, Mass, Underwriter—None.
mon
York.;/
• Tempromatic Corp. ;
May 19 (letter of notification) 16,000
Texas
Vv.
May 2 filed 85,484 shares of common stock, to be of¬
fered for subscription on the basis of one new share for
—For
repayment of current
agreement with bank and the balance will be applied to
the company's construction program. Office—445 Fair¬
field Ave.,** Stamford, Conn. Underwriters — Ladenburg,
Thalmann & Co., Bear, Stearns & Co. and Sutro Bros.,
Co., St. Louis, Mo.
Offering—Expected in late June.
March 23 filed 700,000
each
consisting
Price—To
ceeds—To be applied in part to
•
stock (no par). These secu¬
sale in units, each
a
amendment. Proceeds—For
City, Utah.
(6/20-24)
(letter of notification) 200,000 shares of com¬
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds -—For general corporate purposes.
Office — 693
Broadway, New York, N. Y. Underwriter — Pearson
Murphy & Co., Inc., New York, N. Y.
stock
shares of common
to be offered for
are
$1,000 debenture (with 5-year warrants to purchase
20 common shares initially at $15 'per share) , and 40
shares of common stock. Price — To be supplied by
of
Mockingbird Lane, Dallas. Underwriter — Elmer K.
Aagaard, 6 Salt Lake Stock Exchange Bldg., Salt Lake
mon
Dean
March
Office—
March 23
Ave., Los Angeles, Calif. Underwriter —
& Co., New York City and Los Angeles.
•
Central National Bank Building, Richmond, Va. Under¬
writer—Lee Higginson Corp., New York.
customers.
(6/6-10)
11 filed 100,000 outstanding shares oL common
stock (par $1). Price—To be supplied by amendment.
Proceeds — To ' selling stockholder. Office —915 North
invest
filed
Meeting—June
April
senting outstanding stock, to be sold for the accounts
of certain selling stockholders. Price—To be supplied by
amendment.
Proceeds—To retire 70% of the common
24
City. Information
Corp.
Telecomputing
•
Bids—Expected to
28 at 90 Broad St.,
11 a.m. on June
to
11:00 a.m.
and 240,000
1985.
up
floor, New York
19th
24 at
shares of common stock. Price—
$2 per share. Proceeds—For the drilling of three wells
and the balance for working capital. Office—2720 West
ceeds—To be available for loans to
received
be
(Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par $lj,
of which 1,543,000 shares are to be issued and sold for
the account of the company, and 457,000 shares, repre¬
due
V VV
\
Goldman, Sachs & Co.
& Smith, Inc.;
Sottiie, Inc.
May
•
000,000 of bank loans
tures. Office—111 North Dale Mabry Hwy., Tampa, Fla.
Underwriter—To be determined by competitive bidding.
Probable bidders:- Halsey, Stuart & Co. Inc.; Stone &
Webster Securities Corp.; Merrill Lynch, Pierce, Fenner
all of New York.
Southern
(6/28)
bonds, series
some $24,and for I960 construction expendi¬
repay
cumulative convertible
Electric Co.
Tampa
May 19 filed $25,000,000 of first mortgage
due July 1, 1990. Proceeds—To be used to pay
general corporate purposes. Office—2326 Nostrand Ave.,
Brooklyn, N. Y. Underwriters—First Broad Street Corp.;
Russell & Saxe, Inc. and V. S. Wickett & Co., Inc.,
stock
Office—225 Park Ave., South,
Underwriters—F. Eberstadt & Co. and White,
Co., both of New York. ,
" V//-V/'
Weld &
Inc.
—Bear, Stearns & Co., New York.
preferred stock, ($.01 par) and 90,000 shares of class A
common stock
($.01 par).
It is proposed to offer these
shares in units, each consisting of one share of preferred
at
corporate purposes.
New York.
May 24 (letter of notification) 82,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
Seaway Shopping Centers, Inc.
May 20 filed 90,000 shares of $.50
(lames) Inc.
Talcott
eral
general corporate purposes.
(Herman H.)
•fr Smith,
—Principally for addi¬
capital. Office—Florence, Ala. Under¬
Sloss & Co.. Inc., New York.
;
May 19 filed
Office—2520
By-Pass Road., Elkhart, Ind. Underwriter—Rodman &
Renshaw, Chicago, 111. Offering—Expected in mid-June,
for
working
writer—Marron,
A
Skyline Homes, Inc.
April 15 filed 115,000 shares of class A common stock
(par $1). Price—To be supplied by amendment. Pro¬
ceeds—^To be-added to the company's working capital
used
.
—
tional
agreement and putting the company in a more
position to secure, through borrowings, such
additional funds as may be required from time to time.
Office—105 White Plains Rd., Tarrytown, N. Y.
Under¬
and
Development Co., Inc. (6/13-17)
j ■ "!•
;
common stock (par $1).
Swimming Pooi
•
favorable
Underwriter—Sire Plan Portfolios, Inc.,
Quade, Pres., 246
offering. Proceeds—To provide
option to purchase 72,600 of the
of common of
maximum ag¬
$1,333,333.- Office—Chicago, 111, v :
V-V
credit
St., Garfield, N. J.
$300,000. Price—To be supplied by amendment. Proceeds
—For mining expenses. Office — c/o Wallace F. Mc-
Securities Corp. has con¬
10,000 such shares. Price—
113,003 issued and outstanding shares
Progressive Wholesale Grocery Co., at a
issuing
company and 12,500 shares being outstanding stock, by
Geoffrey R. Simmonds, president. Price — To be sup¬
plied by amendment. Proceeds — To be added to com¬
pany's working capital, thereby reducing the amount
of funds required to be borrowed under its revolving
*Sav-A-Stop, Inc. (7/11-15)
May 27 filed 100,000 shares of common stock (par 10
cents). Price—$4.50 per share.
Proceeds—For working
capital.
Office — 2202 Main Street, Jacksonville. Fla.
Underwriter—Pistell, Crow Inc., of New York City, for¬
merly Pistell, Schroeder & Co.
(6/27-7/1)
on
$25 per share for public
the funds to exercise an
100,000
Beaconsfield Blvd., Beaconsfield, Que¬
bec, Canada. Underwriter—P. Michael & Co., 69 Passaic
Development Corp.
Saucon
April 28 (letter of notification) an undetermined num¬
ber of shares of common stock (par $1) not to exceed
111
offering subscription Central
ditionally agreed to purchase
writer—Shearson, Hammill & Co.,
York,
cumulative dividend), $1 par, The comto sell 50,000 shares, through a group of
headed by Wm. H. Tegtmeyer & Co., Chi¬
a firm commitment basis; and by a pre-
proposes
cago
New York.
• Sire Plan Normandy
Isle, Inc. (6/15)
March 9 filed $225,000 of 10-year 7% debentures and
4,500 shares of $3.50 cumulative, non-callable, partici¬
pating preferred stock (par $5), to be offered in units,
each unit consisting of one $50 debenture and one pre¬
ferred share.
Price—$100 per unit.
Proceeds — To fi¬
nance acquisition.
Office—Ingraham Bldg., Miami, Fla.
New
annual
($150
oany
City.
Precision Products, Inc., (6/6-10) y
filed 112,500 shares of common stock (par
Simmonds
/
preferred shares-convertible series
60,000
10 filed
May
$2,300,000 of
some
.
(6/27-7/1)
•
»
May
10 filed
175,000 shares of outstanding common
ctock
Price—To be supplied by amendment. Proceeds
—To selling
stockholders. Office — Stamford, Conn.
Underwriter—Amos Treat & Co. Inc., New York City,
Super Food Services, Inc. v
•
.
,
Inc.
Steima,
outstanding bank
loans and for construction expenditure. Office — 220
South Virginia St., Reno, Nev. Underwriter—To be de¬
termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Kidder, Peabody & Co. and White,
Weld & Co. (jointly); Stone & Webster Securities Corp.
and Dean Witter & Co. (jointly). Bids—Expected to be
received on July 6, at 49 Federal St., 8th floor, Boston,
Mass., up to 10:30 a.m. EDT.
Information MeetingScheduled for July 1 at 11:00 a.m. EDT. at 90 Broad St.,
Proceeds—To
J. Keenan & Co/
Calif. Underwriter—John
Angeles, Calif.
;
Angeles 23,
the
tor
capital. Office—Gardena, Calif. Underwriter
& Co., Inc., New York City.
+ Sierra Pacific Power
May 26 filed $3,500,000 of
machinery, inventory and for
Office—4120 E. Bandini Boulevard, Los
purchase
Proceeds—To
—Marron, Sloss
Price—To be supplied by
amendment. Proceeds—To be used largely for reduction
of accounts payable, as well as for new tooling, research,
subsidiaries.
four
of
100,000 snares of common
are
(letter of
Mav 5
/
to be sold for the account of
issuing company and 20,000 shares are to be sold
the account of the present holder thereof.
Price
per share (par $1). Proceeds—To reduce bank loans
shares
80,000
amendment.
tAt Roto American Corp.
May 27 filed 75,000 shares of common stock (par
be offered for cash sale to the public, and 44,283
(6/13-17)
Electric Corp.
Sierra
Works, Inc.
notification) 100,000 shares of 6% con¬
preferred stock. Price—At par ($3 per share).
Standard Carriage
equipment for chip-n-sand c°ur.ses14702 Hawthorne Boulevard, Lawndale, Calif.
Under¬
writer—Binder & Co., Inc., Los Angeles, Calif.;,
chase land and
41
general corporate
shares
Thursday, June 2, 1960
. . .
(2402)
Continued from page
to
Financial Chronicle
Commercial and
The
42
Thermal:
Feb.
26
(6/6-10)
(par $1)per
share.
Proceeds—To be added to the
general reserves. Office—Miami, Fla. Un¬
Industries of Florida,
filed
Price—$6
company's
&
has been
'
Inc.
120,000 shares of common stock
derwriter—Peter Morgan &
Co., New York.
Three-L-Corp.
shares of common stock. Price
share. Proceeds—$46,098 will be applied to
the acquisition of 493 acreas of land in Fairfield Town¬
ship, Hyde County, and $15,000 for payment of the
July instalment on acquisition of about 12,726 acres m
Hyde County; $500,000 for purchase and installation oi
machinery, equipment and saw mill and $75,000 for
working capital in connection with lumber operations;
$65,000 for January 1961 instalment payment on the
March 24 filed 3,500,000
—$1
per
12,726 acres; and the balance to purchase
planting feed and pasture, raising livestock,
livestock,
and acldl"
capital. Office—Fairfield, N. C. Under¬
writer—Participating dealers will receive 15 cents Per
tional working
share.
-
'
Number 5956
191
Volume
.
.
The Commercial and Financial Chronicle
.
(2403)
(6/15)
Electronics, Inc.
Thurow
standing, by the holders thereof. Price—To
by
filed 200,000 shares of class A common stock,
far $2 oO) ol wnicn 100,000 shares are 10 be ottered lor
P,hlic sale by the issuing company and the balance by
vf
M Carpenter, President. Price—$3 per share. ProVds-—To be used as additional working capital for inmitorv
and business expansion purposes. Office—121
Cnnth Water, Tampa, Fla. Underwriter—Donald V. Sta28
March
Lii
&
York.
Corp. (6/10)
(letter of notification) 100,000 shares of com¬
mon stock (par $1).
Price—$3 per share. Proceeds—To
set up a plant and equipment, to purchase machinery
and equipment, and for working capital.
Office—c/o
William h. Berger, 209 Washington St., Boston, Mass.
Underwriter—P. de Rensis & Co., Inc., Boston, Mass.
__For
-.
•
Hindley & Co., Inc., New York, N. Y.
Triumph Storecraffters Corp. (6/27-7/1)
May 18 filed 145,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—For general cor¬
Wallace
Properties,
April 5 filed $12,000,000
Inc.
principal amount
of 6% con¬
debentures, due June 1, 1975 and
360,000 shares of common stock (par $2), to be offered
elli,
vertible subordinated
only in units, each consisting of $100 principal amount
of debentures and three shares of
Texas. Underwriters
common
stock.
and First Southeast¬
Ga.
.' :
,
Underwriters National Assurance Co.
May 12 filed 240,000 shares of common capital stock.
Price—$7.50 per share. Proceeds—For general corporate
purposes, including payment of operating expenses, the
carrying on of the insurance business, and for working
capital (and including $50,000 which will be certified to
Offering—Expected sometime in June.
•
Waltham
Precision
Instrument
April 15 filed 700,000 shares of
Co., Inc.
common
stock
(6/10)
(par $1).
It is proposed
that this offering will be on a subscription
company's present common stockholders.
Price—To be supplied by amendment. Proceds—$600,000
basis
authorities for investigation and examination by
the certificate of authority to transact in¬
surance business).
Office—1939 North Meridian St., In¬
dianapolis, Ind. Underwriter—David L. Johnson & As¬
sociates, Inc:, Indianapolis, Ind.
the
to
to pay the balance of the purchase price for Boesch
Manufacturing £o., Inc. stock; $350,000 to pay the 5%
chattel mortgage note held by the Secretary of the U. S.
Treasury as assignee of the Reconstruction Finance Corp.;
State
it to procure
$200,000 to
the 6% secured notes issued as part pay¬
of Electro-Mec Laboratory, Inc.; and
pay
ment for the stock
United Components,
common
balance
the
stock, of which
for
working
capital
and
other
corporate
Office—221 Crescent St., Waltham, Mass. Un¬
10,000 shares are to be offered to Sheldon Leighton, a
purposes.
director, at $2.50 per share and the remainder is to be
derwriter—Schweickart & Co., New York.
Warren
March
Corp. of California >(6/8-9)
$6,000,000 of convertible subordinated
April 1, 1975, and 120,000 shares of cap¬
stock, to be offered in units of $100 of debentures
and two capital shares. Price—To be supplied by amend¬
ment. Proceeds—Approximately $1,000,000 will be used
for general corporate purposes, and the balance will be
distributed to holders of the capital stock prior to the
Price—$3
debentures due
ital
issuance
and
sale
of
units.
the
Brea Avenue, Inglewood,
Office—425
Calif.
South
1
United
March
States
28
filed
Boat
350,000
publicly offered.
—
Corp.
shares
27
Underwriter—Richard
rate of
thereof.
new
The
Bruce &
of
stock
common
date
to
be
pany's 1960 construction program and to the retirement
of $5,305,000 of long-term debt.
Underwriter — To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; East¬
man
Dillon, Union Securities & Co.; Equitable Securi¬
ties Corp.
Information Meeting—Scheduled for June 3
in Room 238, 43 Exchange Place, New York, at 11 a.m.
be
utilized for working
Co., Inc., New York.
common
each
is
to
be
stock, to be of¬
stockholders
four
(EDT).
(EDT)
shares
or
at
m
the
•
fraction
working
of
capital
other properties.
and
for
possible
Tampa,
acquisition
Office —602 Florida Theatre Bldg.,
additional $300,000 is to be
filed
31,361
shares of 4%%
Market
cumulative
pre-
Westmore, Inc.
si°ck
($100 par). Price—To be offered for sale
over-the-counter market, or otherwise by public
r
private sale at
$95 per share, or such lesser price
or
prices which
may be obtained. Proceeds—To selling
stockholders. Office—602 Florida Theater Bldg., Jack¬
sonville, Fla. Underwriter—None.
■
n
i
Co.
T?ir
+
A
oceeds
—
SAe1C1unty
C.
n
Wheeler
(6/15)
•*
(7/14)
216,645 shares of capital stock to be ofat tK
?'* subscription by stockholders of record July 14,
ne rate of one new share for each 15 shares held. Price
stn °r
supPBe(i by amendment. Proceeds — For conbani
i'new machinery, the retirement of outstanding
—-P
?ns> and the balance for working capital. Office
km
Calif. Underwriter—Dean Witter & Co., San
^ancisco, Calif.
*
^
i
•
Annto^ ,ManufactuHnS
Of
Co-» l"c- (6/8)
/ e<f250,000 shares of common stock (no par),
kS ?, !*' 100,000 shares are to be offered for public
hy the
+i!-
sain
J
issuing
company and 150,000
shares, now out¬
Securities Co., New
Co.
.
(6/8)
May 4 filed $8,000,000 of sinking fund debentures due
1980. Price—To be supplied by amendment. Proceeds—
To
be
to the
added
general funds of the company
and
Office—New York,
Underwriters—Smith, Barney & Co. Inc. and Gold¬
Sachs & Co., both of New York.
used for
N. Y.
man,
general corporate purposes.
WonderBowl, Inc.
April 14 filed 3,401,351 shares of common stock (par $2).
Price—$2 per share. Proceeds—For purchase of certain
property, for constructing a motel on said property and
various leasehold improvements on the property. Office
—7805 Sunset Boulevard, Los Angeles, Calif.
Under-,,
writer—Standard Securities Corp., same address.
Yale
Express
Inc.
System,
(6/6-10)
stock (par 25
pub¬
lic sale by the issuing company and the balance by the
company's board chairman.
Price — $5.50 per share.
Proceeds—$400,000 to restore working capital expended
to acquire American Freight Forwarding Corp. and for
March
25
filed
300,000 shares of class A
cents) of which 150,000 shares are to be offered for
of the freight forwarder operation; $150,000
funds advanced in connection with the ter¬
expansion
to
restore
minal recently constructed
the balance for expansion
460
12th
Kletz &
in North Bergen, N. J. and
and improvement.
Office—
Avenue, New York.
Underwriter—Michael G.
Co., Inc., New York.
Yardley Water Co.
(letter of notification) 4,000 shares of common
be offered for subscription by stockholders on
of one share for each three shares held. Price
May 11
stock
to
the basis
share. Proceeds—To repay a debt, for construc¬
pipe line, and for repayment of developers'
W. College Ave., Yardley, Pa. Under¬
per
of
loans.
a
Office—50
writer—None.
Yuscaran Mining Co.
May 6 filed 1,000,000 shares of common stock. Price— $1
per share. Proceeds—It is expected that some $100,000
will be used to purchase and install a mill for the proc¬
essing of ore; $60,000 for rails, ties, rail cars and related
equipment: $10,000 for rebuilding, roads; $30,000 for
transportation equipment; and $655,000 for working cap¬
ital. Office—6815 Tordera St., Coral Gables, Fla. Under¬
writer—None.
Prospective Offerings
Steel Co.
Acme
March 25 the
company's annual report stated that capital
improvements during 1960-63, inclusive, have been proj¬
ected to cost between $40,000,000 and $45,000,000.
It is
anticipated that a substantial proportion of this money
be
forthcoming from depreciation and retained
will
In addition, the sale of $10,000,000 of preferred
supply a part of these over-,
earnings.
stock in
1960 is planned to
all capital requirements.
19
Fibre Glass Boat Corp.
filed
100,000 shares of common
Laboratories, Inc. (6/13-17)
Jan. 28 filed 85,000 shares of common stock and $500,000
of 6% subordinated debentures, due 1977, with warrants
for the purchase of 10,000 additional common shares at
$5
per1 share.
Price — For the debentures, 100% of
principal amount; for the 85,000 common shares, $6
per share.
Proceeds—For general corporate purposes,
including the reduction of indebtedness, sales promo¬
tion; and equipment.
Office—Myerstown, Pa. Under¬
writer— Hallowell, Sulzberger, Jenks, Kirkland & Co.,
Whitmoyer
Philadelphia, Pa.
Office—Chicago, 111.
^Alberta Gas Trunk Line Co.
it
1
was
announced
(10/4)
that the company is planning
security issues totaling $110,000,-
million first mortgage bonds will be sold in
States and the balance of the financing in
$65
the
United
Canada.
'•
Atlantic
Line RR.
Coast
(6/8)
Bids will be received by the Road on
June 8 for the pur¬
$4,665,000 of equipment trust certifi¬
cates. Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
mon Bros. & Hutzler. Bids—Expected to be received on
chase
it
from
June 8 up to
of
12 noon EDT.
Electronics
Avnet
Corp.
May 17 it was reported that the company
contemplates
filing of about $2,000,000 of convertible debentures
sometime in June. Proceeds—For expansion and general
Office—70 State St., Westbury, L. I.,
Underwriter—Hemphill, Noyes & Co., New York.
corporate purposes.
N. Y.
Union Gas Co.
announced that thecompany plans no
more
financing this year, but there would be some in
1961, although the form it is to take has not as yet been
^ Brooklyn
May
cents). Price—$4 per share. Proceeds—$35,000
chase of machinery and equipment; $18,000 for
To selling stockholders. Office — 557
Salt Lake City, Utah. Underwriter—
M.Vao,an Associates
.
Chemical
the
stock (par 10
for pur¬
required
deposits on the company's lease, insurance and utilities;
$185 000 for working capital and the balance for expan¬
sion'of production facilities. Office—450 Zerega Avenue,
Bronx, N. Y. Underwriter—Morris Cohon & Company,
of New York. Offering—Expected in late June.
May
Allyn & Co., Inc., Chicago, 111.
fprI*
Underwriter—Jacey
wood, N. J.
York, N. Y.
/
c
(6/13-20)
(letter of notification) 150,000 shares of common
stock (par $2). Price—$2 per share. Proceeds—For gen¬
eral corporate purposes. Office—137 South Ave., Fan-
filed. 200,000 outstanding shares of common
mJf lPar 10 cents)- Price—To be supplied by amendcto
319 West
May 9
the
•Uranium Reaction
provided through long term
during the current year. Office —
St., Lima, Ohio. Underwriter—None.
financing
w
29
Witco
000.
stock. The com¬
to offer this stock for subscription by its
common stockholders of record June 6, 1960, at the rate
of one new share for each 10 shares then held with rights
to expire on July 7. Price—$17.50 per share. Proceeds—
To be added to the company's general funds and will be
used for property additions and improvements.
An
and be available for use
near
(6/6)
19 filed 43,048 shares of common
pany proposes
Jacksonville, Fla. Underwriter—None,
Universal Marion Corp.
larch
•
June
Gas Co.
West Ohio
May
supplied by amend¬
developing the company's tract of land
Underwriter—Michael G. Kletz & Co. (man¬
achie, N. J.
aging).
to offer in October four
Common stock has no par value. Price — To be
supplied by amendment. Proceeds—To be added to the
company
Bids—Expected to be received up to 11:30 a.m.
June 7, Room 1106, 1100 H Street, N. W.,
on
Washington, D. C.
ment.
general funds of the
Proceeds—$50,000, to purchase new
Washington Gas Light Co. (6/7)
12 filed $12,000,000 of refunding mortgage bonds,
1985. Proceeds—To be added to the
company's general funds and applied in part to the com¬
share.
common
share for
record
(par 25 cents). Proceeds—To purchase additional
inventory and equipment and the balance to improve the
company's
working capital position.
Office — Moon-
May
Haynes Avenue, Newark, N. J.
subscription by
one
share
/
(6/6-10)
per
Universal Marion Corp.
April 15 filed 435,120 shares of
fered for
Industries, Inc.
(6/27-7/1)
150,000 shares of class A stock to be
publicly offered, 15,000 shares to be issued pursuant to
a restricted
stock option plan, and 21,500 shares being
registered but not offered at this time. Price—$3 per
filed
26
Vickers, Inc., of New York City.
later repayment of $45,000 to U. S.
a
Win-Chek
April
La
Underwriter—Lehman
the balance will
Office
Broadway, New York City. Offering—Expected in June.
series due June 15,
Price—$2
capital, including
Pool Corp.
share.
equipment; $25,000 for research and development; $25,000
for advertising and promotion; $200,000 to acquire and
new/facilities; $23,649 for payment of notes to
stockholders,, and $78,100 for working capital. Office—
3701 N. W. 51st St., Miami, Fla. Underwriter—Merritt,
Proceeds—$221,826 will be
applied to the repayment of loans to United
States Pool Corp. which were used for
general corporate
purposes, and
per
thereof.
open
Brothers, New York City.
•
Industries, Inc.
and will be offered for the account of the holders
filed
30
System, Inc.
(letter of notification) 80,890 shares of common
stock
(par $1).
Price—$3 per share.
Proceeds—For
general corporate purposes.
Office—151 Odell Avenue,
Yonkers, N. Y.
Underwriter—Equity Securities Co., 39
29
—$25
(6/13-20)
April 29 filed 275,000 shares of common stock (par- $1),
of which 175,000 shares are to be issued and sold by
the company and 100,000 shares which are outstanding
—
United Financial
Wilier Color Television
tion
publicly offered. Price—To be supplied by amendment.
Proceeds
For new equipment, advertising, and other
general corporate purposes. Office—Orange, N. J. Un¬
derwriter—Darius, Inc., New York City.
•
•
Jan.
Price
—To be supplied by amendment. Office—Dallas, Texas.
Underwriter—Harnman Ripley & Co., Inc., New York.
Co., Atlanta,
March
........
(6/3-10)
Vulcatron
Proceeds—For working capital. Address—Selah,
Underwriter—None.
$ Tri-Point Plastics, Inc.
(6/6-16)
March 15 (letter of notification) 150,000 shares of com¬
mon stock (par 10 cents).
Price—$2 per share. Proceeds
Inc.
2 filed 110,000 shares of
—
March 11
Wash.
ern
Viewlex, Inc.
New
toe).
porate purposes. Office—Houston,
—Hardy & Hardy, New York City,
supplied
Office
holders thereof.
Price—$4 per share. Proceeds—
$100,000 will be used to purchase additional high speed
automatic production equipment; $150,000 for research
and
development of new products; $75,000 to be re¬
served to cover the costs of
moving present facilities
into new and enlarged
quarters; and the balance for
working capital.
Office — 35-01 Queens Blvd., Long
Island City, N. Y.
Underwriter—Stanley Heller & Co.,
Top, Inc.
Mav 23 (letter of notification) 30,000 shares of preferred
stock and 2,000 shares of-common stocky Price—Of pre¬
ferred at par ($5 per share); of common, at par ($1 per
ipfo
be
expansion.
the
Tree
general corporate purposes. Office—175 I. U. WilRoad, Albertson, L. I./N. Y. Underwriter—Martin-
For
April 12 filed 200,000 snares of class A common stock
(par 25 cents). The offering will include 175,000 shares
to be issued by the
company and 25,000 shares wnich
are
outstanding and will be offered for the account of
York,
New
—
Curtis, New York.
•
of St.
Co.,
Proceeds
Southampton, Pa. Underwriter—Paine, Webber, Jackson
Petersburg, Fla.
Trans Tech Systems, Inc. (6/27-7/1)
(par
March 29 filed 65,000 shares of common stock
i/p cent). Price—$10 per share. Proceeds—For general
pnroorate purposes. Office —5505 Wilshire Blvd., Los
Angeles 48, Calif. Underwriter—Myron A. Lomasney &
x
amendment.
43
10
it
was
determined.
•
Burlington
Chicago,
Bids
will
be
received
& Quincy RR.
(6/7)
for the
by the Road on June 7
purchase from it of $2,550,000 of equipment trust certifi¬
cates. Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
mon
Bros. & Hutzler.
Bids — Expected to be received
on
June
7 up to
1:00 p.m. EDT.
City Gas Co.
March 10 it
to file
an
was
reported that this company is
expected
stock some¬
Underwriter—Kidder, Peabody & Co., New
undetermined amount of common
time in June.
York City.
Consolidated
Edison Co.
May 15 it was indicated by H. C. Forbes, Chairman, at
the annual meeting of stockholders, that common stockContinued
on
page
44
Bros.
rights to subscribe to convertible deben¬
tures or common stock in the Fall.
This type of financ¬
ing would be contingent upon the ability of the company
to get its presently outstanding 4% debentures converted
into common stock.
Con Edison this year will spend
holders may get
$225,000,000 on new construction compared with
$222,000,000 in 1959 and $189,000,000 in 1958.
For the
five years through 1964, Mr. Forbes estimated that the
utility would spend $1.2 billion for plant expansion. To
finance the five-year program he said the company will
have to issue some $800 million of securities of one kind
about
another.
April 29 the company
(7/26)
Co.
Power
Consumers
asked the Michigan Public
Service
permission' to issue and sell securities
with base value of $73,101,600. The company proposes to
issue and sell first mortgage bonds in the amount of
Commission
for
$35,000,000 maturing not earlier than 1990 for the best
price obtainable but not less favorable to the company
than a 5%% basis. The mortgage bonds are expected in
quarter of the year. It also proposes to issue and
sell convertible debentures in amount of $38,101,600 ma¬
Texas.
1975 at a price not less
turing not earlier than
the
company
to
be offered
are
favorable
than a 5Yi% basis. These debentures
to the company's common share own¬
subscription on the basis of $100
principal amount of debentures for each 25 shares of
common stock held with
rights to expire on Aug. 12.
Proceeds
To be used to finance the continuing expan¬
sion and improvement of the company's electric and
gas
service facilities in a 65-county area outside of
Greater Detroit. Underwriter — To be determined by
competitive bidding.
Probable bidders: For bonds —
Halsey, Stuart & Co. Inc.; White, Weld & Co., and
Shields & Co.
(jointly); Morgan Stanley & Co.; The
First Boston Corp., and Harriman Ripley & Co., Inc.
For debentures—Morgan Stanley & Co.
■'/'
of record July 26 for
ers
—
*
Control Data Corp.
it
1
June
that the company contemplates
reported
was
early registration of about 125,000 shares of its common
stock.
Office—Minneapolis, Minn. Underwriter—Dean
Witter &
♦
was
stock
mon
Proceeds
Inc.
Dynamics,
16 it
are
—
For
Securities Corp.,
Commission authorized the
company to issue 185,088 new shares of comman_stack
and to reclassify 1,989,673 outstanding $5 par shares to
no
par value.
The new stock, to be issued at no par
value, will be distributed to common stockholders as a
16 the Federal Power
dividend
or
sold to employees under a company
purchase
Of the total, 132,644 shares of the new stock will
be distributed as a dividend on the basis of one new
share for each 15 shares held.
However, no fractional
shares will be issued. A total of 52,333 of the new shares
will be sold to employees, with proceeds going for con¬
struction expenditures.
plan.
it Florida Power &
June
it
1
Light Co.
announced
was
that the company anticipates
1960 approximating $25,000,000 and
estimates that in 1£61 it will require approximately $50,-
further financing in
000,000 of new money.
This company on May 31 floated
through Merrill Lynch,
Pierce, Fenner & Smith Inc. and associates at a price of
$59,125 per share.
a
400,000 common share offering
Power Corp.
Florida
March 10 it
reported that $25,000,000 of first mort¬
was
bonds will be sold by this utility,
gage
struction and
be
Proceeds
possibly in the
For new con¬
repayment of bank loans. Underwriter—To
fourth quarter of this year.
by
determined
—
Probable
bidding.
competitive
bid¬
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.
and Merrill Lynch, Pierce, Fenner & Smith Inc. (joint¬
ders:
ly); First Boston Corp.; Eastman Dillon, Union Securi¬
ties & Co. and Harriman Ripley & Co. (jointly); Lehman
Brothers and Blyth & Co. (jointly).
Ford
Motor
March 28 it
Credit Co.
was
this
Georgia Power Co.
Dec.
it
9
tration
with
was
of
announced
$12,000,000
SEC.
the
of
(11/3)
30-year
—
first mortgage
To
be
bonds
determined
by
competitive bidding. Probable bidders: Halsey, Stuart &
Co.
Inc.; Morgan Stanley & Co.; Equitable Securities
Corp., and Eastman
Dillon, Union Securities & Co.
(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
uled for Sept. 26.
Bids—Expected to be received on
Nov. 3.
Information
Meeting—Scheduled- for Oct. 31.
Hayes Aircraft Corp.
12 it was reported that
is being discussed
issue of convertible de¬
an
and may occur in the next
few months.
Office—Birmingham, Ala. Possible Under¬
writer—Sterne, Agee & Leach, Birmingham, Ala.
Houston
March
22
was
announced
in
the
company's
annual
report that it
new
year
anticipates approximately $35 million in
money will be required
in 1960 to support the
s construction program, and to repay outstanding
bank loans.
of
fhe
Studies to determine the
issuance
of
additional
nature, and timing
securities
presently
Last August's offering of $25,000,003 of 47,g%
first mortgage bonds was headed by Lehman
Brothers,
under way.
was
are
Northern States
curities Corp.
.
vv.
.
,
was
bonds,
construction
Underwriter—To be deter¬
Probable bidders: Halsey,
Stanley & Co.; Glore, Forgan
purposes.
For
Morgan
Stuart & Co. Inc.;
writer—Myron A. Lomasney
Union Securities & Co.
to be received on July 6 up
:\"'v ■
Indianapolis Power & Light Co. (9/27) •
;
April 18 it was reported that the company will issue and
sell $12,000,000 of 30-year first mortgage bonds. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Lehman Broth¬
ers; Goldman, Sachs & Co., and The First Boston Corp.
(jointly); Eastman Dillon, Union Securities & Co.;
White, Weld & Co., and Shields & Co. (jointly); Blyth
& Co., Inc.; Equitable Securities Corp.
Bids—Expected
to be received up to 11 a.m. New York Time on Sept. 27.
Information Meeting—Scheduled for Sept. 22 at 11:00
a.m.
•,
;■■■'. ;
"
Eastman
and
Co.
&
Dillon,
-
(jointly). Bids—Expected
to 11 a.m. (EDST)
^
..
.
^
President Sutherland Dows
depreciation and retained earnings and, to
any remaining balance, from the proceeds
short-term borrowings.
& Light Co.
announced that the company plans to issue
at least $20,000,000 of securities, the date and form of
which will be announced at a later date.
Proceeds—To
Power
Pacific
Jan. 29 it was
t
retire
that a secondary offering of com¬
being discussed. Proceeds—To
selling stockholders. Underwriter — Lehman Brothers,
mature
presently
is
stock
later this -year.
tures
May 11 it was reported
mon
$20,000,000 of unsecured promissory notes, to
on or prior to July 31,
1961. The notes will be
part of the issuer's 1960-61 construc¬
issued to finance
which are expected to total about
Office—Portland, Ore.
expenditures,
tion
New York.
$61,000,000.
ic Laclede Gas Co.
May 10 it was announced that
Panhandle Eastern Pipe Line
in addition to the $15,000,-
might sell
the third
quarter of this year. Underwriters — Merrill Lynch,
Pierce, Fenner & Smith Inc. and Kidder, Peabody & Co.,
retained earnings.
both of New York.
^ Long Island Trust Co. (6/14)
May 26 the directors of this bank voted
the
issuance
of
61,413
new
shares of
March 21 it
a
14, 1960, on the basis of one new share of stock for each
eight shares then held. Price—$23 per share. Proceeds
capital and surplus. Office — 82 Seventh
Dillon, Read & Co. and Johnston, Lemon
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Lehman
Brothers and Eastman Dillon & Union Securities & Co.
and Stone & Webster Securities Corp. (jointly).
&
(10/18)
reported that this company plans the
issuance and sale of $16,000,000 of first mortgage bonds.
Proceeds—For construction.
Underwriter—To be de¬
it
was
Loeb
that
Panel
& Co.,
reported that this company plans the fil¬
cago,
common stock. Office—Chi¬
Proceeds—For working capital. Underwriters
Byllesby & Co., Inc. and Rodman & Renshaw,
Chicago, 111.
111.
M.
both of
Michigan Beiil Telephone Co.
May 23
come
to
it
announced
was
market in August
debentures.
that
(8/23)
the
company
plans
to
Proceeds—For
construction, costs of
which
currently about
$103,000,000 per year. Office—De¬
troit, Mich. Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.
Midland
it
Enterprises
stated
was
in
the
company's annual
report
in?? it contemplates the issuance on or before March 31,
1 nnS'bond issue *n an ag£regate amount not to exceed
*
$4,000,000.
Proceeds
equipment
ordered.
mm'
.
To finance river transportation
on
order
and
Office—Cincinnati, Ohio.
.
Mohawk
March 16 it
register
—
presently
«
'
1 '
Insurance
was
its first
"
'
■
'
»
' '
to
expected
■
>"
-»'* I
"f
be
<•
fi
Co.
public offering
in June; The
offering
Kuhn,
New York.
Rochester
March
1
it
Gas
was
Electric
&
stated
in
the
that the company has filed an
State
Public
Service
Corp.
,
company's annual
report
application with the
for the
Commission
New
right
Underwriter
Probable
bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody
& Co., White Weld & Co. and Shields & Co. (jointly);
Kuhn, Loeb & Co.; Salomon Bros. & Hutzler, Eastman
Dillon, Union Securities & Co., and Eouitable Securities
$10,000,000 of new preferred stock.
to issue
be
—To
determined
(jointly);
by
Blyth
comoetitive bidding.
&
Co.,
Inc.; The
First Boston
San Diego Cas & Electric Co.
,
April 8 it was reported that $25,000,000 of bonds
expected to be sold sometime in the third quarter
this
tive
Inc.;. Blyth
ner
..
»
oi
year.
Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & L '
& Co.; First Boston Corp.,, Eastman
Union Securities & Co. and Merrill
announced that the company expects to
Corp.;
Lehman Brothers (jointly). Bids—Ex¬
pected to be received on Sept. 20 up to 11 a.m. Informa¬
tion Meeting — Scheduled for Sept. 15 at 11:00 a.m. in
& Co., and
Corp.
Corp.
Inc.
competitive bidding.
Halsey, Stuart & Co. Inc.; The First Boston
York
for the sale of $35,000,000 of
short-term
Underwriter—To
Probable bidders:
of company's
To pay all or part
be determined by
Loeb
ing of 128,000 shares of its
—H.
—
indebtedness incurred for construction.
issue of common stock.
Mercantile Discount Co. of Chicago
was
(9/20)
preliminary steps
for the sale of $50,000,000 in first and refunding mort¬
gage bonds with a maturity of not more than 30 years.
Proceeds
an
Co.
May 18 directors of this company took
reported that negotiations are still pend¬
ing regarding the filing of
May 25 it
financing has not been determined.
Public Service Electric & Gas
Co.
was
annual report
progressively
permanent financing is under¬
The timing, type, and amount
the company's
borrowings will increase
later in the year.
of this
White, Weld & Co. (jointly); Kidder,
Peabody & Co. and Goldman, Sachs & Co. (jointly). Bids
—Expected to be received on Oct. 18.
Mac
short-term
taken
curities & Co. and
March 23 it
stated in
was
during 1960 until further
American Securities Corp. and Wood,
& Co. (jointly); Eastman Dillon, Union Se¬
Co.,
Struthers
Hampshire
Public Service Co. of New
by
&
Co.
April 4 it
competitive bidding.
Probable bidders:
Halsey1, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man
Brothers and Blyth & Co., Inc. (jointly); Kuhn,
termined
Corp.;
ton
Underwriter—None.
Louisville Gas & Electric Co.
April 27
annual report it
anticipated that their 1960 construction program will
amount to $39 million and there will be further financing
of about $15 million of an as yet undetermined type.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co., Inc.; First Bos¬
—To increase
Ave., Garden City, L. I., N. Y.
stated in the company's
was
is
$5).
Subject to the approval of the stockholders
special meeting to be held at 8 p.m. on June 14,1960,
new shares will be offered to stockholders on June
the
Electric Power Co.
Potomac
to recommend
capital stock
(par
at
Co.
April 19 it was reported that this company
about $65,000,000 of debentures, possibly in
provided by the July
bond-equity financing, $33,000,000 will come from later
sale of securities other than common stock and from
capital expected to be
000 of new
;
mortgage bonds and deben¬
$50,000,000 of first
sell
to
stated that bonds
Co.
Paper
bonds, from
the extent of
of additional
ic Pacific Lighting Corp.
May 11 it was announced that this company, in order to
finance additional pipeline distribution systems, plans
supplement money to be ob¬
tained from temporary bank loans, to acquire the $10,000,000 required to finance 1960 construction. Office—
Sutherland
$10,000,000 of its first mortgage
ditions, of
^
Rapids, Iowa.
the sale of the com¬
is not financed by
pany's 39,165 shares of its convertible cumulative pre¬
ferred stock, series E, 5%
(par $100) will be financed
from the proceeds of sale in 1961, subject to market con¬
would be sold in order to
Cedar
Orange & Rockland Utilities, Inc.
April 18 it was stated that the company presently ex¬
pects that such part of its construction program through
1962 and the refunding of $6,442,000 series B bonds ma¬
turing in 1961 as
Co.
Electric Light & Power
-A :
Office—Norwalk, Conn. Under¬
& Co., New York.
eral corporate purposes.
competitive bidding.
mined by
■
reported that the company plans to file
an
undetermined amount of common stock sometime
soon.
Proceeds — For expansion of business and gen¬
March 30 it was
sale of about
issuance and
v:/:
Norwalk Co.
reported that the company plans the
$50,000,000 of first mortgage
maturity of which has not been set. Proceeds—
April 29 it
Bids—Expected to be received by Dec. 6.
(jointly).
Co.
Co.- (7/6)
Bell Telephone
Illinois
30-year first mortgage
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co., Inc.;
Merrill Lynch, Pierce, Fenner & Smith Inc., Kidder,
Peabody & Co. and White, Weld & Co. (jointly); The
First Boston Corp. and Blyth & Co., Inc. (jointly); Leh¬
man Brothers and Riter & Co.
(jointly); Equitable Se¬
curities Corp. and Eastman Billion, Union Securities &
Weld &C<>.
Eastman Dil¬
Equitable Se¬
(jointly); Salomon Bros. & Hutzler and
lon, Union Securities & Co. (jointly);
(Minn.) (12/6)
company plans the is¬
Power Co.
bonds.
Co. and White,
Kidder, Peabody &
Inc.;
was
May 11 it was reported that the
suance and sale of $35,000,000 of
bidders: Halsey, Stuart & Co. Inc.; Blyth
& Co, Inc., Lazard Freres & Co. and The First Boston
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Smith
April 8
Lighting & Power Co.
it
Chicago, 111.
ding. Probable
are
Feb.
bentures
it
30
it
12
plating the placing in registration of 17,000 shares of
common stock.
About 66% of the issue will be sold
for the company's account and the remaining 34% bal¬
ance will be sold for the account of a selling stockholder.
Underwriter—Van Alstyne, Noel & Co., New York.
reported that the company plans to
$15,000,000 of 1st mortgage bonds due 1990
sometime in the fall. Proceeds—For capital expenditures,
etc. Underwriter—To be determined by competitive bid¬
March
Inc.
\
reported that the company is contem¬
Nedick's Stores,
Nov.
issue and sell
that the company plans regis¬
Underwriter
Dowd
Idaho Power Co.
Office—High Point, N. C. Underwriter—Bache
New York City and Charlotte, N. C.
-
Office—Detroit, Mich.
year.
—198
*\
plans to file
of
York.
reported that the company
Byllesby & Co., Inc.,
reported that this company is develop¬
ing plans for borrowing operations, which may include
The issuance of debt securities, and possibly occur later
.
75,000 common shares. Price—To be sup¬
amendment. Proceeds—For expansion. Office.
Broadway, New York City. Underwriter — R. p.
& Co., Inc., 38 Broadway, New York City.
'
by
plied
rights offering of $2 million to $2V2 million
con¬
vertible debentures. Office — Chrysler Bldg., New
Proceeds—For working capital. Underwriter — H. M.
VK.V.P.
J
Electric Co.
Paso
El
:.
»
a
March 11
100,000 shares of com¬
expected to be filed in early June.
general corporate purposes. Office —
announced that
Palmyra, Pa. Underwriter—Plymouth
New York City.
May
■ •
;
Co., New York and Chicago.
Deckert
-c
•
.
May 25 it was
Iowa
March
Thursday, June 2, 1960
»• •
will consist of
Salomon
Houston,
Hydrometals, Inc.
the last
to
Dillon, Union Securities & Co. and
& Hutzler. Office — Electric Building,
Eastman
Continued from page 43
or
Financial Chronicle
Commercial and
The
(2404)
44
&
Smith
Bros. &
Lynch, Pierce
(jointly); Lehman Brothers
Hutzler (jointly).
fen*
and Salomo
Number 5956
191
Volume
,
.
.
The Commercial and
Financial Chronicle
(2405)
i
Texas. Registration
& Co.
reported that a secondary offering might
fp made this summer. Underwriters — Merrill Lynch,
mprre
Fenner & Smith Inc. and Harriman Ripley & Co.
(Jos.) Schlitz
it was
Marph 11
Sc
Telephone & Electronics Corp.
reported May 18 that a "Reg. A" filing of 52,980
It
was
shares of this firm's 25 cent
par common
ing the company's initial public
Carolina Electric & Gas Co.
March 25, S. C. McMeekin, President, informed this
naoer of plans to sell an undetermined principal amount
nf bonds, the timing of which will be subject to market
conditions. Proceeds—To repay bank loans incurred for
South
holders of record May 31, 100,000 shares on the basis of
one new share for each four held with
rights to expire
on June 20 at 3:30 p.m. EDT. Price—$46
per share. Pro¬
stock, constitut¬
financing,
is expected
shortly. Office—7 East 42nd St., New York City. Under-
ceeds—To
CRye6~NqYty Securities Co'' 39 Broadway, New York
Tennessee Valley Authority
Previous issues have been
current construction program.
placed privately.
• Union Trust Co. of
Maryland
April 21 directors of this bank announced plans to boost
its capital stock by 100,000 shares to 500,000 shares, $10
par.
The bank is offering for subscription to present
Rauscher, Pierce & Co., Inc., Dallas, Texas.
York City.
both Of New
Sometime in June. Underwriter—
—
Jan.
20
45
Alex.
•
1
announced
increase
Brown
Utah
capital and surplus.
Sons, Baltimore, Md.
&
Power
June 1 it
&
southern
March 15 it
that, pursuant to August, 1959, au¬
thorization from Congress to have
$750,000,000 of rev¬
enue bonds
outstanding at any one time, it plans its first
public offering, expected to be; about'$50,000,000, for
that
sometime
derwriter—To
about
Light
Underwriter—
Co.
Probable bidders:
California Edison Co. (8/23)
was1 stated in the company's annual report
besides the $3,0,000,000 issue of series L mortgage
•
26.
•
Union
Bradford & Co.
April 8 it
to
provide for
to
Bell
Southwestern
Telephone Co.
this
of
directors
bidders:
Co.
&
Salomon
Bros.
about Aug. 9 up
v
<
,
with
-
at
a
March
following, using the fig¬
military spend¬
ing abroad, nearly $3 billion ($2.9);
we
planning with Can¬
are
Six
will be
in
operation and what it
concessions of our
own
freedom
clearly'come when
unknown.
Euro¬
our
must |take a bigger
share of these joint defense costs.
The fact that Europe is accumu¬
grants
grants)
have
to
look
for
prompt
a
The
time
has
plain speaking.
been
has
ft
been
serious
still
serious.
is
by itself.
urgent.
If
we
neglect it,
great peril.
for
It
It
two
years,
will
is
not
so
Our
nomic
to our
the
friends abroad
to
their peril.
There
are,
of course,
certain
steps we, must take. The efforts
ow
being
mw
tw
tnat
made
to
stimulate
our
?re §ood. To this end, we
?la e. our People understand
keeping
costs
including
—
rpJm C°uts—*n Bne with economic
my
has
now
national
must
become
urgency.
be kept
a
matter
American
competitive,
restraint
and budgetary
fpr seJ vatlsm are no longer a matvtniiree ch°ice—our creditors
mn
upon
them.
If
we
are
riiAi they have the
cipline
us
rin
means
to
by pulling out gold.
re?i_^e ^ave done all
we must
resPect, there still restark choice—either we
hls
a
alii?
from our friends and
*ree world the same
thp^
cooperation we have given
wL°f we Probably shall be
anti? }° take drastic .unilateral
snri
S
^ n to protect the dollar.
siih*]e Bnited States is providing
to
A
w
vpr?
i
sums for military aid
ern Europe and spending
large amounts there
for
our
Economic Aid
Confine
should
be
to
to
countries
too,
certain of, the
nations,i notably Ger¬
many and Italy, ought to be able
to take up some ,of the burden.
here,
European
that
Nations
should
now
ment to
in
us
we
aided
have
accelerate the repay¬
of loans we made them
their time of need. Great
ain
already
has
along
done
Brit¬
something
this line.
The division of
Western Europe
trading blocs also is a
matter that affects our balance of
into
two
payments position. Six nations of
Continent, led by France and
Germany,
have
established
a
Common
Market,
while
seven
the
other
including Great
Scandinavian
have formed a rival
nations,
and
Britain
countries,
free
the
trade area. These
are
moves
political and economic in¬
tegration such as we have advo¬
cated; but they have provoked a
good deal of tension among some
of the countries involved, espe¬
toward
Britain on
Germany and
cially
and
other.
Europe
is
',V-i
far-reaching
character
emerging
newly
There
is
becoming
the one hand
France on the
the danger of
divided
into
that might dis¬
criminate against each other and
against us. In an effort to averi
rival trading blocs
New
Yardney Electric Corp.
May 9 it was reported that sometime in July this com¬
pany
expects to file
an
yet undetermined amount of
St., New York City.
as
stock. Office—40 Leonard
suggested
is
there
should
need
reform of the
for
a
ask whether
fundamental
International Mone¬
tary
nations,
to
are
an
trading system, may become inad¬
policies betwen key currency cen¬
particularly New York and
vertently involved in an economic
ters,
battle royal among themselves.
London, and whether this
be done through the IMF.
Calls for
the
Under
time
is
World
Economic
Such
Conference
;
the
circumstances,
in
ripe, it seems to me, for
lead
calling
a
new
world economic
conference.
kind
The
in
of
conference I have
comparable
would be
mind
in
with the London Economic
Conference of 1933. But I devout¬
scope
its
that
ly
hope
be
different.
outcome would
It was to that con¬
ference, you will remember,
President Roosevelt sent his
message
mous
rejecting
that
fa¬
currency
gold stand¬
so-called
international bankers." This threw
stabilization
ard
the
as
"old
and
the
fetishes
of
talks into confusion,
conference
reaching
any
broke
up
and the
without
agreement.
:
and
abroad
pose
still
another
ing for an international economic
crisis to force our hand.
.1. problem that needs careful con¬
sideration by a world economic
A
conference
such as I have
the pound. Short of this, it might
committed
as
economic cold war consider whether we need merely
with the Soviet bloc and its state a better means for coordinating
free
the
they
eco¬
confined
under-developed
and
action
of
'•
v
foreign
of
program
aid
in the second quarter of 1961.
England Ave., Winter Park, Fla.
bonds
panded without continuously in¬
creasing foreign holdings of key
currencies such as the dollar and
■
the United States to take the
Poor Lands
is
or evade it, they will
they too have done "so
deficit, while
strong a surplus
position?
Would
of
East
of
economic
problems suggests the danger that
The
these
to our bal¬
more a year
Germany is in so
$2,000,000
Office—132
still
payments
go
It
•yi°t,lgnore
that
ma
of
ance
delay,
real.
shall do
our
It
years.
temporize,
we
If
some
This problem has
developing for ten
away
or
for
come
or
rights basis to existing stockholders
and may or may not be underwritten by one or more
securities brokers. Future plans also include the sale
a
Fund, or for some new de¬
vice by which the liquidity of the
international system can be ex¬
West Germany add $600-
tures in
million
solution.
the 'Outer
organization
in
now
Allies
and
Seven. But when this
cost
(excluding lating dollar reserves at such a
$1.7 billion. high rate is proof that at least
some
European countries could
Here is a total of
nearly $5 billion
of
pay for a larger share of the costs
American
money,
spent
or
of common defense without hard¬
given away abroad.
Here is the source of our deficit ship. Why, for instance, should the
States
and it is in these items that we United
military expendi¬
Government
military aid
will be offered on
Underwriter—To be named.
the
may
for 1959: Net
This stock
30,000 additional shares of its common stock.
in
military forces. The time has
pean
announced that this company, during the
common
Blvd., St. Louis, Mo.. Offdling—Eih^tted
latter part of this year.'*' '
''a
;
^ i.
v
; ;.v.
own
comes
was
Co.
quarter of 1961, will issue and sell approximately
—315 No. 12th
Change of Eras This Time
It
May 10 it
first
,
Park Telephone
Winter
of
called'Inner
commercial transactions.
•
announced
was
ada, to join a new 20-nation or¬
ganization embracing both the so-
from the
lyn, New York.
by Dudley Sanford, Execu¬
tive Vice-President, that the company plans an offering
of debt securities in the range of $30,000,000 to $35,000,000. Proceeds—To meet construction expenses. Office
.
Continued from page 10
contemplated by this supermarket chain. No confirma¬
was obtainable. Office—2300 Linden fllvd., Brook¬
proposed
16 it
Halsey, Stuart & Co. Inc.; Salomon
Hutzler; White, Weld & Co.; Eastman Dillon,
& Co.; Stone & Webster Securities
Bids—Expected to be received on Sept. 13.
Securities
tion
Union Electric Co.
Halsey,
be offered for sale. Under¬
by competitive bidding.
determined
Waldbaum, Inc.
May 11 it was reported that public financing is being
$100,000,000 of subordinated income
least
this,
will
Corp.
announced that the company plans to offer
was
bonds will
be
bidders:
&
Union
$100,000,000. Proceeds — Together with
private
placement
which
is
presently being worked on by this company's bankers,
will be used for expansion of the company's jet-fleet.
Underwriters—Dillon, Read & Co., Inc., Lazard Freres
& Co., and Lehman Brothers, all of. New York.
Stuart & Co. Inc.; Morgan
Bids—Expected to be received on or
to 11:00 a.m. EDT.
Steck Co.
ures
Bros.
To
—
Probable
Airlines, Inc.
stockholders
$190,000,000
(8/9)
recommended
company
its
be
mortgage
writers
Hutzler
common stock purchase war¬
rants, and Hughes Tool Co. (parent) will purchase not
only its pro-rata portion ($78,000,000) but also enough of
any debentures not taken up by others to provide TWA
May 4 it was reported that the company plans the filing
of 60,000 shares
of common- stock.
Office — Austin,
A
&
first
debentures with detachable
$100,000,000 debenture issue,- subject to-approval by
regulatory authorities. Proceeds—To finance an expan¬
sion and improvement program over the next five years.
Underwriter—To be determined by competitive bidding.
Stanley
(jointly).
Trans World
the payment of
the issuance of first
mortgage bonds and other debt securities.
The timing
of the issue or issues was not stated in the report. Office
—Birmingham, Ala.
/r '•'•/"/';/•'
Probable
and
(jointly); Chase Manhattan Bank and Morgan Guaranty
(jointly); and Blyth & Co. and J. C.
in the company's annual report that
expects
company
28
Co.
Trust Co. of N. Y.
certain outstanding notes through
March
&
sold
Virginia Electric & Power Co. (9/13)
Feb. 5 it was reported that approximately $25,000,000
.
Apijil 4 it was stated
•
Securities
stock is expected to be
.
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc., First National City Bank of New York, Equitable
Securities Corp. and Smith, Barney & Co.
(jointly); First
Boston Corp., Lazard Freres & Co., Eastman
Dillon,
Southern Natural Gas Co.
the
Leh¬
Brothers. Underwriter—To be determined by com¬
man
common
determined by competitive bidding.
Halsey, Stuart & Co. Inc.; Blyth & Co.
and First Boston Corp. (jointly); White, Weld & Co.;
Stone & Webster Securities Corp.
(jointly); Salomon
Bros. & Hutzler; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Bros.; Bear, Stearns & Co.
..
will depend on market conditions. Proceeds—To finance
construction of new generating capacity. Power Financ¬
ing Officer: G. O. Wessenauer. Financial Advisor:
$9 million of
sometime in the third quarter of this year. Proceeds—For
construction purposes and repayment of bank loans. Un¬
in tfoe Fall.
May 13 it was announced that
$50,000,000 of additional revenue bonds will be
offered in the Spring of 1961. The
type of bond issued
underwriters in January, 1960, an addi¬
tional $55,000,000 to $60,000,000 will be needed to com¬
plete its estimated $123,000,000 construction program for
I960 This financing is dependent; upon market condi¬
tions, and will probably be some type of debt security.
Southern Counties Gas Co. (7/26)-vMay 16 it was reported that the company contemplates
the issuance and sale of approximately $20,000,000 to
$25,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,
Fenner & Smith Inc. Bids—Tentatively expected on July
sold to
hnnds
and
reported that $18 million of debt securities
was
well
a
to
would
up
to
the
European
been
level, leaving the dollar perma¬
nently over-valued. It has not es¬
caped
notice
that the
the United States
deficit; in
balance of pay¬
almost
from
the
moment in 1949 when the pound
ments
dates
•
-
of such a conference,
we
could guard against the pos¬
sibility that deflation, rather than
inflation, may be our major prob¬
lem.
We could examine carefully
By
means
the
international
of
adequacy
monetary reserves and the possi¬
ble need for new devices to econ^
omize
gold and to strengthen
and governments
in the event of a liquidity crisis.
We could face up to the fact that
on
banks
central
far
thus
it
with
I
the
both
acted
stabilizer
that
do
question
currencies
stabilized at too low a
face
whether
have
conference
should
conference.
'
is
States
United
has
pump-primer and
free world and
as
for the
time
others.
to
share this job
|
»v
certainly do
not wish
to ap¬
in the role of prophet of
gloom. On the contrary, I am con¬
fident
that
the
knowledge we
pear
have
we
acquired
and
the
strength
built
into
the
national
have
economies
of the free
world will
possible for us to deal
with
our
problems without re¬
sterling and other European cur¬ peating the disastrous experiences
rencies were devalued.
of the past.
I have great confi¬
dence in the ability of intelligent
There are other questions:
men to find a way out of any dif¬
Raises Other Questions
ficulties that present themselves.
Do we need coordination aimed I fear only the very human ten¬
just at dealing with balance
payments strains or capital
flight, but also at interest, rates
and monetary policies — so that
one nation does not take counter¬
not
of
make
it
dency
to keep
solutions
day's
applying
to
today's
yester¬
prob¬
lems.
The
have
policies of the past 15 years
brilliantly in re¬
succeeded
the productivity of warand Japan.
They
have helped to bring about the
What do we do about the prob¬
the world has become almost uni¬
and
most
widespread
lem of trade liberalization?
The greatest
versally committed to the wel¬
Now the
United States has gone far toward prosperity in history.
fare state.
And yet it has re¬
liberalizing its trade policy vis-a- problem is no longer reconstruc¬
turned, almost inadvertently, as it
vis the rest of the world.
Other tion and recovery. It is the seem¬
were, to a gold standard.
It has
nations, particularly some whose ingly less dramatic but, in fact,
done this without any certainty
far more challenging question of
payments position now is stronger
that the people are prepared to
than ours, have not kept up. Dis¬ economic stability, of making cer¬
accept gold standard
discipline.
cussion of commercial policy in tain this hard-won prosperity en¬
We must now face up to the prob¬
dures.
On the solution of this
all its aspects would be an impor¬
lems
that
are
inherent in this
tough, stubborn problem will ride
tant item on the agenda. Inciden¬
situation. We must, in short, bring
all the free world's hopes.
We
the
knowledge
that
we
have tally, this discussion should be must
bring to bear upon it the
concerned with Europe's liberal¬
gained in the past quarter-century
ization not only toward United highest wisdom, imagination and
to bear on the problems that the
States
goods but also toward generosity of spirit our age can
London
Conference
failed
to
command.
solve.
And we would be very Japanese goods.
Declining commodity prices and
wise—I may add—to do this while
*An address
by Mr. Bell before the
the world is still riding the flood the consequent falling income of Copper and Brass Research Association,
raw material
producers at home Hot Springs, Va., May 17, 1960.
tide of prosperity instead of wait¬
It
is
in the
realize that
quarter-century since 1933,
important to
cyclical action to the detriment of
storing
others?
torn
Europe
The
46
The following
Business Activity
Equivalent to—
ingots and castings
Month
Week
oil and
*65.6
75.0
93.7
*1,870,000
2,137,000
2,653,000
Gasoline
27,964,000
2,218,000
2,496,000
7,967,000
28,246,000
2,105,000
May 20
12,097,000
11,762,000
12,678,000
6.065,000
6,164,000
Kerosene
(bbls.)
Distillate
fuel oil
In pipe linesMay
at.
.
(bbls.)
87,972.000
85,S33,000
*78,408,000
94,088,000
38,875,000
38,263,000
38,813,000
54,484,000
May 21
636,808
639,954
625,374
CONSTRUCTION
ENGINEERING
CIVIL
.
——
——
173.200,000
289,200,000
273,300,000
215.900,000
208,800,000
219,800,000
May 26
175.900,GOO
178,200,000
161,500,000
May 26
40,000,000
30,600,000
58,700,000
178,600,000
(U. S. BUREAU OF MINES):
coal and lignite (tons)
.May 21
(tons).
Pennsylvania anthracite
*8,255,000
3,600,000
296,000
275,000
320,000
134
146
;
,i 8,499,000
290,000
'
v
45:'-
£■i'
46 -'
V
.
AVERAGE
=
100
12
</
138
47
17--
' "
125
113
i
438
348 -.: "
T.
ELECTRIC INSTITUTE:
(in 000 kwh.).
EDISON
.May 28
Electric output
INDUSTRIAL)
(COMMERCIAL AND
BRADSTREET, INC.
FAILURES
A
.May 26
COMPOSITE PRICES:
(per lb.).
AGE
IRON
299
75
6.196c
6.196c
6.196c
J
$66.41
$66.41
$66.41
$33.17
.May 24
$32.50
:;.
institutional———_
Electrolytic
Domestic
(E. A M. I.
'
May 25
.
PRICE8 DAILY
Bonds
BOND
MOODY'S
32.600c
32.600c
May 25
_
at
refinery
refinery at
Lead (New York) at
Lead (St. Louis) at
tZinc (delivered) at
Zinc (East St. Louis) at.
Aluminum (primary pig. 99.5% )
Straits tin (New York) at
Export
29.800c
)
,
*
32.600c
29.975c
12.000c
May 25 "
12.000c
May 25
11.800c
11.800c
13.500c
13.500c
13.000c
13.000c
.May 25
26.000c
26.000c
_
at
.May 25
AVERAGES:
29.575c
•
11.800c
?
t.-\.
'
13.000c
100.000c
99.375c
'vy.a^ezsc
.
v
*
85.02
84.15
83.92
84.68
85.07
86.51
89.23
89.37
89.78
87.18
87.18
87.32
84.17
84.17
84.68
86.11
82.03
85.59
78.90
-May 31
82.52
82.40
82.52
May 21
85.07
85.20
85.72
_
Group.
Utilities
Public
YIELD DAILY
U. S. Government Bonds
Average corporate
86.65
86.65
May 31
4.06
4.15
.May 31
4.81
4.81
4.78
-May 31
4.48
4.47
4.46
-
-May 31
4.85
-May 31
5.28
-May 31
4.98
-May 31
A
Baa
Group
Group.
Utilities
Public
4.78
4.67
Bituminous
4.43
4.70
•
*
5.02
r"-
,-
4.75
May 21
296,404
4.52
389.5
297,960
325,053
291,076
311,066
■
"'
86
May 21
95
94
May 21
441,637
468,803
413,884
-May 27
110.29
110.29
110.26
_
activity
.
of period.
-■
-
-v
TRANSACTIONS FOR ACCOUNT OF MEM¬
ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—
110.30
BERS, EXCEPT
May
purchases
Short
Other
May
May
May
sales
sales
sales
Total
Other transactions
2,209,910
421,380
2,150,220
2,252,100
May
279,320
65,600
63,550
sales
Other
sales
255,340
375,050
315,200
378,200
May
sales
/; 128,100
575,955
681,124
785,115
806,244
897,215
994,215
3,162,260
—
transactions for account
purchases
Total round-lot
Total
of members-
4,335,484
Member
585,400
612,480
692,680
Total
2,915,035
3,889,849
dealers (customers' sales)—
orders—Customers' total sales
of
Number
Customers'
3,259,065
3,395,064
3,619,535
3,527,515
Dollar
1,744,393
1,743,783
1,686,362
$83,566,716
$81,603,149
$85,698,984
$125,781,158
Short
17,543
17,408
10,082
Otherr
sales
1,437,063
1,460,041
1,485,873
1,919,212
TOTAL ROUND-LOT
STOCK SALES ON
of shares.
THE
N.
Y.
Total
round-lot
Short
$68,802,358
368,700
$69,299,389
419,560
$76,255,342
395,960
$104,855,472
495,180
368,700
4197560
3*95,960
495480
Government
612,180
613,770
774,890
Other
739,730
759,470
13,693,380
14,700,580
14,793,770
—
15,440,310
14,953,240
19,484,990
U. 8. DEPT. OF
119.7
119.8
119.8
89.S
90.7
90.1
91.0
May 24
107.1
107.3
106.7
107.6
—
as
of Jan.
figure.
1. I960
as
Against6 JaV^^959"asis
Monthly Investment plan.
•ne-half cent
a
pound.
fPrime Western
May 24
96.8
97.4
95.7
101.9
—
May 24
128.4
128.4
128.6
127.8
fiSdf«r!?n<4Kr,B^fed
niw annual capacity of 148,570,970 tons
zinc
f dS!-iS?h*I£U*l?^r
or(?er8 *°\ ^ported since introduction of
c sold on delivered basis at centers where freight from East St, Louis exceeds
of
sold
$6,156
$5,757
$3,145,000
$3,567,000
770
•
2
of
287,416,163
109,655,449
166,000
359,000
1,205,000
294,255,796
106,004,286
614,000
539,000
556,000
2,322,000
2,219,000
2,332,000
*$394.0
271.3
*269.4
$379.0
257.3
*112.2
social
10.4
35.4
10.3
12.2
13.6
24.9
24,6
*27.9
in¬
9.8
*9.8
382.3
*379.5
$983,016
$858,725
119,371
102,583
376,567
342,036
108.6
85.4
66.9
j36.8
45.0
9.9
34.3
12.2
12.0
12.9
21.8
26.9
8.3
362.7
NONFARM
LOAN BANK
IN
(000's omitted):
4
——
...
104,387
banks.—.—
lending
48.1
28.2
for
and loan
associations..
companies
Banks and trust companies
—;
*39.1
13.6
—...
8. —HOME
of March
70.6
12.2
income
FINANCING
U.
88.7
*70.1
10.9
persons...
Insurance
Miscellaneous
283,381,312
10.5
...
savings
988,000
35.6
...
Savings
Individuals
940,000
88.4
nonagricultural income
OF
366,000
113.0
;
ESTATE
117,000
»
2—_
—
professional
ana
BOARD—Month
Mutual
•Revised
575
$397.4
':
-
—
income
income
AREAS
119.5
May 24
—
All commodities other than farm and foods.
$4,412
570
1,013
48.3
payments
contribution
REAL
May 24
foods
$4,573
39.4
employees'
Total
—
Meats
294,806
290,623
COMMERCE)—Month
interest
Less
100):
products
Processed
OF
surance
commodities
Farm
438.8
IN THE UNITED STATES
Transfer
18,311,340
14,499,810
May
I
Commodity GroupAll
other
Personal
1,173,650
May
=
on
Govt,
i_,
Rental
806,430
.
issues
collateral—
S.
U.
on
Farm
May
(1947-49
labor
Business
STOCK
sales—
WHOLESALE PRICES, NEW 8ERIES
:
276,977
113,000
bonds
Dividends
~
130
20,402,000
17,945,000
8,776,000
342,839
354,000
industries
Service
(SHARES):
sales
—
borrowings
646,040
Total sales
LABOR
borrowings
May
sales
Other
116
,$3,151,000
...
April (in billions):
Total personal income—
Wage and salary receipts, total
Commodity producing industries—
Manufacturing only
;
Distributing industries ———
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBER8
445.0
109,006,810
...
in banks
listed
of
value
.May
.
dealers— Number
19,969,00017,602,000
11,126,000
us
$5,747
of
.May
Round-lot purchases by
,
2'
126
838
customers
to
and
hand
PERSONAL INCOME
14,167
.May
sales
extended
on
(DEPARTMENT
1,477,449
.May
shares—Total sales.
of
;
107
344,944
—
Member
1,933,379
1,454,606
1,495,955
Round-lot sales by dealers—
Number
I
286,884
in U. S
Total of customers' free credit balances.,.
Market value of listed shares..
Cash
2,278,440
.May
value
.
STOCK
Member
.May
sales.
•
449.5
EXCHANGE—
(000's omitted):
firms carrying margin accounts—
customers' net debit balances..
Credit
4,582,529
.May
short sales
Customers' other
■
April 30
Market
May
May
shares
of
of
2,809,664
3,152,130
—
value
■
609
YORK
As
632,170
SECURITIES EXCHANGE COMMISSION
Odd-lot sales by dealers (customers' purchases)—t
Dollar
114
„.V
PURCHASES — INSTITUTE
— Month
of April
Total
NEW
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND SPECIALISTS ON N. Y. STOCK
Number
144
8,989,000
:
2,636,895
May
sales
Odd-lot purchases by
137
April:
Group
May
.
EXCHANGE
139
$4,300
May
.
sales
Other sales
Short
Total
.•.*$821,000
1,503,000
863,625
696,785
$805,000
omitted):
(000,000's
130,590
sales
Total
$888,000
17,599,000
Industrial
835,594
May
.
864,555
125,120
May
sales
Other
697,700
120,830
May
Short
673,030
May
.
34,931,000
INSURANCE
LIFE
OF
568,083
the floor—
9,994,000
$71,907,000
STEEL CONSTRUC¬
OF
of
INSURANCE
■
480,183
438,600
$70,193,000
38,200,000
1,680,000
19,957,000
(tonnage)—estimated
Shipments (tonnage)—estimated
87,900
321,440
8,623,000
,
V
*
closed
Contracts
468,400
63,000
May
•
transactions initiated on
Total purchases
•
May
.
sales
Other
385,710
347,180
May
Month
TION)
3,020,231
.
Short
omitted).::—_«-.
place on April 30-.—.—
INSTITUTE
CAN
2,546,041
2,240,840
*
SALES
Spinning spindles active on April 30—
Active spindle hours (000's omitted) April
474,190
1,830,720
'
*
(DEPT. OF COMMERCE):
COTTON SPINNING
3,031,490
396,730
1,753,490
22,839,000
14,116,000
.2:7,809,000
-
LIFE
Initiated off the floor-
purchases
Total
2,309,270
2,107,250
445,740
1,795,100
.
Total
;
30.,
Active spindle hrs. for spindles in place April
FABRICATED STRUCTURAL STEEL (AMERI¬
ROUND-LOT
Total
...
(000's
30
Spinning spindles in
REPORTER PRICE INDEX—
tons)2_——
1
'
Average=iOO—Month of April:
^
(average monthly), unadjusted—*—
(average daily), .unadjusted——.—
Sales (average daily), seasonally adjustedjj. *
95
468,806
999
34,685,000
1,231,000
Sales
,
May 21
)—Month ^
Sales
317,985
"
1
SECOND FED•ERAL
RESERVE
DISTRICT" FEDERAL v«
RESERVE BANK OF NEW YORK—1947-49 V
291,909
303,573
.
/ «■-
STORE
DEPARTMENT
4.63
'
April
of
As
-121
.
.
2*19,427,000
$69,192,000
anthracite (net'tons)
•
•
COMMERCIAL PAPER OUTSTANDING—FEDERAL RESERVE BANK OF NEW YORK—
,..v
/ •;
,13,950,000
——_—————
.
4.74
120
$16,50li000
coal and lignite (net
4.53
,
:
1,335
(BUREAU OF MINES
Pennsylvania
166
'
9,671,000
April:.
.
132
671
.
$19,170,000
liabilities
OUTPUT
379.2
4.66
(tons)
OIL, PAINT AND DRUG
1949
AVERAGE—100
'X Total
of
"
•
(tons) at end
'
4.73
380.6
.
Unfilled orders
,
4.77
4.66
_
Percentage of
-'
r'
Vt,;
4.98
•
4.99
377.2
(tons)
—
Construction
■
-202
;x
1-43
"'607
:--"241.'.:":::
121
liabilities
liabilities
/ Commercial
service liabilities.!-!^—
Retail
4.10
5.23
5.28
.
-May 31
COMMODITY INDEXNATIONAL PAPERBOARD ASSOCIATION:
Production
-88.54
.
4.61
v'i4.81'
4.85
-May 31
Industrials Group
MOODY'S
Orders received
.
4.17
4.62
4.62
-
Railroad
<
21
•*»
1,370
•
-May 31
Aa
■;':;
-91
$18,483,000
11,420,000
—_r_—
18,563,000
—i———_—,
13,661,000
—
<—
7,065,000
liabilities
Wholesale
V.
COAL
AVERAGES:
39
,*.'s 224ir :
■
liabilities j.' _i__—____—__
85.46
-
87.05
May 31
.
Industrials Group
MOODY'S BOND
45
'■
'-82 i'V :
'13
220
,v
number
Total
Manufacturers'
88.40
-
79.49
_
37.' "
■
■v-'i-rr
140
———-—__
number————
service
83.77
84.68
I8S.0S
.May 31
Railroad Group
Construction- number
-
Commercial
73.90
i-4
674
;
103.500c
-
"•
2i5'-.
:
•
—1;
number
Retail
—-
_—_—
„
f
.May 31
Baa
number
Wholesale
*
24.700c
26.000c
43
-*
4.1.
number
Manufacturing
11.000c
»May 31
—
A
:4
11.500c
.May 31
Aa
116
•
'XrXm
.
BUSINESS
.May 31
.May 31
U. S. Government
Average corporate
419
..
72
,: V " 15"
FAILURES—DUN & BRADSTREET,
' INC.—Month of April: "'
\f-~r
12.000c
13.500c
.May 25
•
11.800c
May 25
.
38
119
•
• • :.v
-
-45:
...
SO
.
,
31.125c
33.075c
12.000c
_
50
&:■
'
QUOTATIONS):
copper—
^
\
'
service enterprises..?.—.-!.—
V
Conservation and development---—---—
,/j All other public___l--_---"-i_t^---_-n--''
Public
METAL PRICES
38
„
-.117
74
47
•
30
229
^.::6o
V.- 265
121
•
•
*',
'X
.*V-3'5
,
390
•
95
385
::
:-37.
39 ":; i
13
1,285
..
■
31-
75
and water, systems-————-—-
Sewer
<■
-
,a99
..
;-4B
v
nonresidential buildings!:..-——i
Military facilities L____
.
.
'
•' 331,.
■
■
34
$35.83
v,
57
78
351
,
■':v'29--
'29"
216
Highways
$66.41
$33.50
-
363
_—
Other
,
6.196c
.May 24
ton).
steel (per gross ton)
Pig iron (per gross
....——-
•
■;:t.
962
,
<
.
•
19
:
58.
•
,
Administrative and Servide'.—z
1"/.,
429
~
-
322
.
1,155
•*,
———ri:—---■
and
Hospital
v
264
325
313
;
.May 24
Finished steel
Scrap
' -12,778,000
13,300,000
13,468,000
13,572,000
■
DUN
131
*
~
397
:
■■-.V-A
Educational
"12
/
'
>:•
90
Industrial
--v
v
,
V36
,.''44:-''
.,
' :'f.
16
•
*■''
..——
Nonresidential buildings
45
'
—————
Residential buildings
..
4i
47
45
>
construction ...—-'"
Public
67
'
'
private———.————---—.
other
All
;
!
139
INDEX—FEDERAL RESERVE May
DEPARTMENT STORE SALES
SYSTEM—1947-49
8,365.000
.May 21
126
201
V
.
.
.
Bituminous
-276
,150
"
227 v;
74 '
•;
,
'
COAL OUTPUT
150
■:
.
"
143
75
Public utilities—1---------'Telephone and telegraph...—J——-Other public utilities——.—
Federal
:
229
i
institutional—1.1—
construction
Farm
>*;
•
'
■
139'
"
,
57
627
:
,
305
"162.
.
:
161
.
V
372
•:
•
213-
■
300
v
recreational—;!
and
Miscellaneous
,v
.
745
*
——————
Hospital and
Social
165,500,000
$493,100,000
$498,000,000
$389,100,000
X'■
207
-
Religious
•
.
«
1,370
v;
.
68
.
736
-2,999
1,799
278
■
69
—
——
4,284
•'
r,114->V
,•
291
Educational
May 26
municipal-
State and
586,687
May 26
construction
Public
1,176
•
restaurants, vand garages-.—
nonresidential buildings.——Z—
other
;
construction
Private
>
and warehouses
buildings
Office
$679,700,000
335,600,000
344,100,000
May 26
construction
U. S.
(nonfarm)—
Commercial
686,152
»
.538,164
541,622
541,238
of cars)—May 21
NEWS-RECORD:
Total
1.536
1,460
Industrial .a——-————————
;
ENGINEERING
—
2,734
Stores,
OF AMERICAN RAILROADS:
freight loaded (number of cars).
freight received from connections (no.
Revenue
23,212,000
,-.3,696
2,854
—————
»Nonhousekeeping
Nonresidential buildings
..
4,009
6,464,724
OF
alterations—.:—U--
and
Additions
v
6,804,908
units——————-4 ;
dwelling
New
203,610,000
19,113,000
22,922,000
ASSOCIATION
Revenue
221,552,000
construction
Residential buildings
.
6,614,000
May 20
.
.
,
011,647'
construction——.—-----—--—-
new
Private
1,488,000
May 20
.
at
at
12,114,000
U. S. DEPT.
(in millions):
—
.LABOR—Month of April
Total
•
216,059,000
21,947,000
214,128.000
20
transported by 437
tons)—-———-
(in
CONSTRUCTION
BUIIJOING
27,569,000
May 20
.
at--
Residual fuel oil (bbls.)
6,188,000
May 20
unfinished gasoline (bbls.)
and
27,262,000
6,864,010
7,215,975
7,891,000
6,982,610
6,793,810
8,034.000
bulk terminals, In transit.
Stocks at refineries,
Finished
117,935.000
«,
May 20
output (bbls.).
Distillate fuel oil output (bbls.).
Residual fuel oil output (bbls.).
Kerosene
March:
general freight
Intercity
carriers
May 20
stills—daily average (bbls.).
output (bbls.)
to
runs
Ago
ASSOCIATION, INC.—
TRUCKING
AMERICAN
Month of
May 20
May 20
gallons each).
Year
Month
Ago
AMERICAN PETROLEUM
42
Previous
Month
Year
Ago
§1,765,000
June 4
INSTITUTE:
condensate output—dally average (bbls. of
that date, or,
on
§6119
June 4
(net tons)
month ended
or
shown in first column are either for the
in cases of quotations, are as of that date*
Latest
AMERICAN
Steel
or
Previous
Week
IRON AND STEEL INSTITUTE:
Indicated Steel operations (per cent capacity)——
month available. Dates
week
i
Latest
Crude
Thursday, June 2, 1960
. . .
production and other figures for the
statistical tabulations cover
latest week
Indications of Current
Crude
Financial Chronicle
Commercial and
(2406)
....;
....
institutions.........
103,527
354,843
324,946
467,377
416,987
$2,405,561
" $2,148,804
♦
$1,058,665
Number 5956
191
Volume
♦
D.
Lars '
who for
has been
with
associated
& Co.; Inc., Chicago, in
institutional sales, has joined the
financial staff of Collins Radio
Rlvth
Cedar Rapids, Iowa. He
Company,
tions
at Collins.
intra-firm
Edward
transfer
ship, has been
liam
H.
of
Mr.
of
of
ner
the
that Albert F. Briggs
C. Magennis have
become associated with the firm
as registered representatives.
and Lawrence
erate
Los
Specialist's
a
Coast
Of
Angela Teschner, Jacob
Gordon, Dennis
Snyder man,
Michael
Burnstine,
Charles
Abramson and David Tamarkin.
S
Fox,
on
of. the Manufacturers Trust
Company, chairman for 1960/61
the
years.
been formed with offices at 312V2
Twiggs Street to
rities business.
A.
Officers
C.
R.
President,
Jackson,
and
R.
Frank
are
Deaton, President and
urer;
the
engage in a secu¬
Treas¬
Vice-
III,
Flemings,
D.
Secretary.
Fidelity
in
a
fices
posts
many
has been appointed
Wm.
during
the
past
She also has served on the
American
Women's
Institute
of
Stanley R. Ketcham & Co.
Banking
William J. Hanley has
Committee; of Los An¬
geles.
,
.
vestment securities
,
Before
joining
Manufacturers
Trust Company in 1948, she had
been
affiliated
with
the
Bank
of
America, National Trust and Sav¬
ings Association in Los Angeles,
where she was secretary to the
ley
Mr.
of
Mr.
of
Fidelity
Tsai,
Capital
formerly
Fund.
assistant
an
vice-president with Fidelity CapiNOTICES
15 3rd
on
the
Preferred
July
payable
Stock
1,
of
1960
this
Stockholders
to
books
will
will be mailed.
Corporation
30,
\v
•
•
CjT
Corporation,
1,
102
thirty cents (30$)
on
the Common
a share
Stock, payable
1960,TJ-q^hareowners
the^ctosb of business
June 8, 19"0Q^^
per
record at the close of business
•
books will not close.
•
of
June
the
3,
1960.
close
of
business
•
A.
Treasurer
Secretary >:knd Treasurer
AMERICAN
share
per
was declared pay¬
June 24, 1960, to stock¬
able
holders of record
of business
at
BANK NOTE
the close
June 9, I960.
,
COMPANY
John G. Greenburgh
61
Broadway
Treasurer.
New York 6, N. Y.
May 26, I960;
Preferred Dividend No. 217
Common Dividend No. 207
yale & towne
.
Secretary.
May 23, I960.
289th
LONGISLAND LIGHTING COMPANY
Quarterly Dividend
208
NO.
D
The Board of Directors of
THE
ANACONDA
has
today declared
of
Fifty
share
on
Cents
its
to
dividend
of
($>.50)
per
the par value of $50 per
share,
payable
1960,
to
stockholders
the
close
June 6,
of
of
record
business
1960.
R.
25
27,
ness on
;
Secretary and Treasure! '
Broadway, New York 4, N. Y.
4.35%
$1.25
$1.0625
$1.0875
$1.0875
Series G,
4.40%
Series D,
Series
VINCENT T. MILES
Treasurer
v
May 25, I960
———
THE
YALE & TOWNE MFG. CO.
on
a
meeting of the Board of Direc¬
Amphenol-Borg Elec¬
Corporation held to¬
quarterly dividend of
thirty-five cents (35^) per
a
share
was
declared
holders of record
of
payable
the
to
at
stock¬
—————
the
COMMON STOCK
Materials Handling Equipment
Cash dividends
since 1875
paid every year since 1899
A
quarterly dividend of VA%
declared
Tobacco
PER SHARE
Payable June 30, I960
Record June 10, I960
Declared June 1, I960
INDUSTRY
ESSENTIAL BASIC PRODUCTS
HOME AND
SERVING
WITH
Secretary.
May 24, 1960.
FUEL
ASSOCIATES
DIVIDENDS
STOCK — "A regular
quarterly dividend of 40 cents
a share, payable June 28, I960
COMMON
to
shareholders of record June
6, I960.
STOCK
CUMULATIVE
A
of
—
dividend
PENN
ELECTRIC SYSTEM
Monongahela Power Company
The Potomac Edison Company
West Penn Power Company
PREFERRED
regular quarterly
$1.12J^ a share,
payable July 1, I960 to share¬
holders
of
record June
6,
I960.
E. H.
250 Stuart
WEST
upon
BIRD, President
St., Boston 16, Mass.
May 26, I960
Our stock is
listed
on
the
Stock Exchange.
Symbol is EFU.
New York
,• >
the
Preferred
($1.50
share) has been
of record at the close of business June
1960. Checks will be mailed.
Co.
a
of The American
Stock
Company, payable in cash on July 1, 1960, to
stockholders
4'/2%
42 Vit
the close
business June 16, 1960.
FRED G. PACE,
Secretary and Treasurer
-
223RD PREFERRED DIVIDEND
Products since 1868
Lock and Hardware
Company
(Incorporated)
Quarterly Dividend
Dividend Notice
June 30, 1960,
^
Vice President
AND
Electric
tronics
The stock trans¬
Elmer F. Franz
25.1960
^HestPenn
aMPHENOL
day
Common Stock
payable July 1,
14,1960
GAS
of
the-
Louis T. Hindenlang
$1.10
5%
4.25%
E, 4.35%
Series B,
THE
tors
are
1960 to holders of record June 6, 1960.
EASTERN
Illinois—At
dividend of 30ff per share on the
have been declared. Both dividends
©a. r.
Broadview,
on
and Treasurer
Per Share
Series
Series F,
at
SCHNEIDER
share (1 J^%)
May 26,1960
June 6, 1960.
on
•
E.
per
quarter ending June 30, 1960
Declared:
quarterly
payable July 1, I960
holders of Preferred Stock
record at th©--close of busi¬
capital stock of
June
a
Stock for the
dividends
COMPANY
a
June
of Directors has de¬
clared the following
quarterly dividend of 75^
Preferred
fer books will remain open.
Record date:
PREFERRED STOCK
The Board
May 26, 1960
,
Share
July 1,1960
DIVIDEND
-
a
Payable:
QUARTERLY
DIVIDEND
A
and
371/2<
AnacondA
May 26, 1960.
thirty-one
and one-quarter (31J4 <ji) cents
BERGEN
R.
John Kuhn,
May 17, 1960
A dividend of
June
on
Checks
will be mailed.
*;
CORPORATION
1960, to stockholders of record
at
payable July
stockholders of
CORPORATION
B.M.TTetsch,
on
stock
on
1960, to
TENNESSEE
quarterly dividend
a
June 29,
payable
Common
mm
of record at
today been declared
Corporation,
the
on
Stock of C. I. T. Financial
C.
TENNESSEE
The Board .o£s£)irectors has
on
this
years
quarterly dividend of $0.65
share in cash has been
declared
•
FINANCIAL
York, N. Y.
of
Commercial Solvents
common
many
management
a
J
BONDANpHARE
declared
has
City.
per
.
corporation
>
outstanding
as
Harry L. Hilyard
.
.
76
York
Hanley has had
experience
A
of
June 17, 1960.
remain open. Checks
ELECTRIC
,;
the
New
Stan¬
Inc.,
NOTICES
•
Company,
record at the close of business
Notice of dividend
share
Street,
Co.,
DIVIDEND
May 24, 1960 a quarterly dividend of
and three-quarters per cent was declared
NOTICES
(10<)
&
consultant.
•
On
Transfer
~~DIVIDEND
New
cents
firm of
Ketchum
R.
Beaver
•
A dividend of ten
joined the
customer relations staff of the in¬
STOCK
PREFERRED
Vice-Presi¬
a
COMPANY
NO.
Man¬
June 10, 1960. The transfer
under the firm name of
DIVIDEND
At
Hanley Joins
N.A.B.W.
CAN COMPANY
one
dent
Hollen & Company.
DIVIDEND
board.
ing bank officials and customers.
with
DIVIDEND
Co.
securities business from of¬
at 410 East 81st Street, New
York City
the
AMERICAN
Fund
BOSTON, Mass.—Gerald Tsai, Jr.,
Hollenstein is engaging
Vincent J.
held
DIVIDEND NOTICES
-
JOHN R. HENRY, Secretary
Forms Hollen &
She
year.
Pacific
<
of
Tsai Named Vice-Pres.
Join Westheimer
CHICAGO, 111. — Westheimer and
Company,
134 South La Salle
Street, have announced the asso¬
ciation with them of Mrs. Beatrice
Post
Division,
Stock Exchange.
tary
TAMPA, Fla.—The Florida-Amer¬
General Part¬
Angeles
chairman
Bank Women Elect
icana Investment Corporation has
Higginson Corporation, 20
turned
from the East where he
Broad Street, New York City, inrepresented his firm on the New
vestment bankers and members of
York Stock Exchange. He will op¬
the New York
Stock -Exchange,
announces
since
(Special to The Financial Chronicle)
Mitchum, Jones & TempleOctober, 1958, recently re¬
Lee
associated
Form Investment Co.
formerly a member
Exchange for many years
a
and
Fidelity Management &
ufacturers Trust Company's Fifth
Metropolitan
New
York Avenue and 43rd Street office,
Company, the Fund's in¬ The
vestment adviser, is also assistant Group of the National Association Mrs. Walters
manages the exec¬
of Bank Women has elected Mrs. utive floor
vice-president of Fidelity Fund.
composed of offices for
Ruby L. Walters, Assistant Secre¬ the chairman of the board, visit¬
by Wil¬
Chairman
prior to becoming
Fund,
1952 with
Calin,
the
47
Research
member¬
announced
Jones,
tal
Board.
ton in
•
of
(2407)
.
Calin, Gen¬
eral Partner of
Mitchum, Jones &
Templeton, to membership in the
Pacific Coast Stock
Exchange, ef¬
fective May 16,
1960, through an
of
With Lee Higginson
Financial Chronicle
•
Exchange Member
Election
engaged in investor rela¬
will be
The Commercial and
.
Coast
RAPIDS, Iowa—Deane R.
the past eight
TFDAR
.
■
Collins Radio Co.
,
.
.
Tubbs Joins
R.
Tllbbs
.
.
10,
Financial Chronicle
The Commercial and
43
.
,
.
Thursday, June 2, 1960
(2408)
shores
because
-
threats,
WASHINGTON AND YOU
the
BEHIND-THE-SCENES INTERPRETATIONS
column
is
making
and
more
more
'
From
may
or
year,
for
the
of
tive
since
it
(in Esso
Company)—Founda¬
tion
for
Research
on
Human
Behavior,
1141 "East
Catherine
Street, Ann Arbor, Mich, (paper),
have
by
more
aid
$3.00.
$4 billion over the recom¬
mended amounts by the White
charged
Now it is called the Mutual Se¬
marked
curity Program, managed by the
International
Cooperation Ad¬
formation
tual
has
$4,175,000,000
quested
re¬
Mu¬
for
It
gress
unlikely
that
the
that
advocating,
but
he
on
doubt
no
President
the
there
to
gripped most of the world,
everything
Dillon, sounded the
C. Douglas
directly or indirectly, will re¬
sult in Congress providing near¬
President
Incidentally,
Cost
$10 Billion Yearly
A few weeks ago
abhors
the
scription
a
of mutual assistance
freedom - loving
countries
There
gories
ing
June
of expenditures,
includ¬
lending in-
separate
seven
schedule of foreign
cal
30, 1959, at $4,837,708,750,
at $3,225,813,000,
1960
year
a
at $48
with
the
million,
or
Congressman,
is
who
a
strong advocate of Federal fiscal
put or call option, risk limited
of the option (maybe a few
make unlimited
(possibly thousands of dollars in
declares
solvency,
a
cost
these
hundred dollars), you can
profits
90 days) is explained in this clear, simple
figures
interest
rowed
the
cost,
assistance
book
give
to
from
foreign
"including
what
on
that
total
have
we
away,
$10,000,000,000
ceeds
is
There
the
bor¬
now
ex¬
year."
a
question at all
Mutual Security Pro¬
the
that
is
gram
PUT and CAU
a
economy.
of
-ers,
no
great drain on our
The Communist leadwould
course,
be
de¬
lighted, if not downright happy,
Options
the
how
shows
book
you
too
can
traders
how
and
pro¬
make
It
shows
time
same
However,
ruptcy.
the
with
Fed¬
eral debt of about $290 billion,
wisest counsel
the
they do it and
maximum profits
investment.
minimum
on
would
people
of this country are demanding
a
strong national defense, but
neither
do
they
want
bank¬
the subject.
on
the
At
fessionals
purchase
"buy"
and
"sell"
options (call and put) because they know
these options
can make
big profits for
them
and
also
can
protect
unrealized
"paper" profits on the stocks they own.
This
States
spend itself into bankruptcy.
HERBERT FILER
of successful
Thousands
United
the
if
authority
#1
is
fairs
needed
also
you
can
sell options on your own
to increase income, where and how
buy and sell puts and calls, how to use
them to
make capital gains instead of
short-term profits, how to uSe options to
protect profits on your stocks, etc.
in
fiscal
our
af¬
Today
to
help
book
you
And
and
only $3.09.
you
examine it Free.
this coupon today.
can
Fill
gram
favorite bookseller,
CROWN
I
|
Please
I
free examination,
standing Put and Call Options for 10 days'
I
!
If
I
Filer's
Under-
|
times
nothing.
over,
for itself
I may return it and pay
Otherwise I
will
pay
Security
The number of
are
increasing from
•
you
$3.00
|
traveled
United
through
ocrats
I
Most
Address,
I
many
1
p| Save postage. Check here if
.
I
enclose check
we pay postage. Same
State.
the
yon prefer to
1
order for $3.00. Thea
!
moneyback guarantee.
|
or money
world;
Department
the
Defense
of
large
Department;
from
leges
and
the
the
from
and
hundreds
col¬
curity
program;
organizations;
press
radio,
of
of
much
liter¬
and
organi¬
other
zations which have been misin¬
formed,
are
whipping it
up
for
foreign aid.
"Your
tinue to
con¬
resist the unwarranted
propaganda and
for an
foreign aid.
Your support of the Commit¬
tee's efforts to bring this gran¬
diose, worldwide spending pro¬
gram
under
control
will
be
appreciated. With your coopera¬
pressure
tion, the Committee will report
a
bill that will
provide ade¬
quate funds, one based on need
and
not
on
desire.
"The Comptroller General has
stated that the weakness of the
program
is too
not too little."
much
are
Plus
of
Program
sistance
the
less
made
vation when he
the
House
16
New
York
to
declared
bases
in
us
;
that
FC-100,
hours
Real
a
matter of
or
"
'
-
destroy
Security
technical
going
as¬
on
in
recipient countries
•
'
disputes the fact that
offer
for
ask
any
us
war.
more
of
us
strength
the
The
our
of
to
and
Security.
of
four
the
committee
mem¬
philosophy anent
Passman,
weeks
who
ago
has
a
Chairman
penchant
expensive suits, and giving
Government
of
Financing—A
Policy
Bankers
use
of
absolutely
(paper).
... i
Revolution
Kar
M.
in
*
Transportation—
Editor—
Ruppenthal,
J Graduate
j
School
of
Business,
University, ' Stanford,
Calif, (cloth), $4.75.
-•••••-
Stanford
Processing
ment
bases
of
—
Enriched
Office of
Selves,
U. S. Depart¬
Commerce, Washington
25, D. C., $3.00.
going to
to give up bases on their
Attention Brokers and Dealers:
r
stC^
/
MARKETS
Botany Industries
Indian Head Mills
Official
Films
Southeastern Pub. Serv.
CMk Marks
FOREIGN
of 1
Analysis
Uranium
their
are
America
of
;
..
Technical
probability is that
Allies
to
State¬
Mortgage
—
Association
TRADING
Our New
& no. Inc.
York telephone
CAnal
number is
6-3840
SECURITIES SPECIALISTS
20 BROAD STREET
TEL: HANOVER <2-0050
•
NEW YORK 5, N. Y.
TELETYPE NY 1
LERNER ft CO.
Investment Securities
foreign aid spending.
Several
for
His
Dem¬
seven
Republicans.
of
Allies who
our
New
Avenue,
"
apart.
ac¬
,C.t5
character¬
couple
a
minutes
**
Estate
ment
"Hiro¬
another
•
one
Fifth
220
Relationship
Technology has made isolation
impossible for any country.
No
utilizing
1, N. Y.—$5 (free descrip¬
tive folder on request).
siles, armed with nuclear war¬
heads, could make New York
of
for
of
;York
may
Moscow
in Puts and
Whiting—Trading
Trading
puts and calls—"Puts &
Calls," R. H. M. Associates, Dept,
avail¬
now
methods
istics
war.
shima," in
45, N. Y. (on request).
Calls—Richard
Intercontinental ballistic mis¬
or
Healthy—
Money
York, 33 Liberty Street, New
Profitable
not and prob¬
ably would not be available to
us
Your
obser¬
Appropriations Sub¬
overseas
able
(cloth),
working of the Federal Re¬
System—Publications Divi¬
sion, Federals Reserve Bank of
of for¬
eign aid face the facts that the
250
Yale University
—
the
appeared before
He
Crisis—.
illustrated primer about
page
Safety
Mutual
programs
Keeping
do the proponents
never
;:-V;
;•
..
Dollar
the
serve
pertinent
a
J,
.
whole
a
;
;
and
Press, New Haven, Conn,
$4.75.
the Mutual Se¬
has
;
.
Robert Triffin
obvi¬
there
by
Inability
Employ^
Increases—Association
the Soviets have the missile and
Marks
the
various
and
Nevertheless, the other day
Brigadier General Bonner Fel¬
lers, United States Army, < re¬
tired,
Cost
Gold
and
"The
on
American
D.C.
many,
exhibits
and
Monroe
Railroads,
Trans¬
portation Building, Washington 6V
series of plus marks.
money,
-
are more
of
and
more
fibre
on
Program
bomber
Some
ment
our
the lead¬
committee.
will
committee
of
program
ously
which
universities
profit
the
who
program;
r
of the Railroads to Bear
Despite all the weaknesses in
.
scores
manufacturers
profit
ally
prestige;
its
Elmer
and with less effort.
acreage
prestige; the State
and
—Testimony
produce
to
food
more
White
the
Association
Engineers Wage Adjustment Case
year
States dollars abroad
Mutual
bers share his
Zone
the
of
House and its
how
ers
scattered in the 76 na¬
tions
Planning
(paper), $2.00.
numerous
em¬
Passman has
thousands
of
Committee includes
Name.
City
program
Many
countries and teaching
Security
Mutual
Francis
—
J/1 B.\ Whitely—Na¬
•
"
other
foremost
agricultural scientists likewise
are
visiting
the undeveloped
and
things.
employes and 10,000
trainees of the
also
•
States
United
arid
tional
highways, rail¬
plants,
cement
power
plants,
from
shocking.
are
are
miles-delving into the spending
of
the
year.
Representative
.
payment in full.
(plus the postage charge within 10 days as
|
pro¬
Many Pressure Groups
J
convinced that it can pay
not
many
Herbert
quarters
43,000
consultants
and
developing
ways,
The
bill.
propaganda
and
and
the various countries
sitting in on conferences
for
against
endeavor
an
reasonable
a
|
or
Dept. A-7,
419 Park Avenue South, New York 16, N. Y.
me
em¬
ployees and the number of
Publishers,
send
43,000
scattered in 76 nations of
world.
the
In
to
To your
■
write
Out
are
of the Mutual
ees
tivities
|
there
ployees, plus thousands of train¬
It can
make a fortune.
you
mail
costs
tremendous odds in
in
said
he
working
"is
letter,
govern¬
this time.
ment at
how
in
a
stock
This
committee,"
"Our
The
3564
Ann
■
Engineers
history.
scientists
and
his
Institute
visiting
excessive amount of
Understanding
by
quality neckties to friends,
a letter to every member
Representatives.
church
total of $8,111,521,750.
The
to
from
all
in
of the House of
the
Stock Market Transactions
How
available
funds
new
other sources
limited Risk-Unlimited Profit
on
funds appropriated for fis¬
new
and
on
expenditure
He
during the 1960 fiscal year.
listed
unexpended ' funds j
than 20 cate¬
more
are
a
assistance funds for
-
*
with
gress
against the Communist forces of
the world.
wrote
many
Mr. Passman
supplied each member of Con¬
program
by
away
Carroll-
Barriers to Trade Between Canada
pressure
de¬
President
•
..
and
to
away
of foreign aid, and
declares emphatically that it is
the
right
request would increase
the chance of war.
that
Eisenhower seeks.
State,
of
Secretary
keynote of the Eisenhower Ad¬
ministration's appeal. He main¬
tains
that any substantial re¬
duction
in the Administration
The stepped-up cold war that
ly
Arbor, Mich., $3.50.
,;V
Masson
Under
tremendous sum.
has
x
J.
Michigan
of
,
ally read a prospectus!"
at
certain
appears
Financing
Disability
Administration,
Administration
Building,
this time.
Capitol Hill that
it
John
—
Govern¬
(paper).
Public
of
financial world—he actu¬
the talk of the whole
"He's
ing. However, Congress will not
the appro¬
Congress is going to appropriate
a
Insurance
University
$1
cut that much out of
priation.
French
Algeria
Old Age, Survivors and
from
is
seems
than
more
Delegation
Alternative Methods of
the $4,175,000,000
that the Administration is seek¬
total
will
amount
slash
to
the
of
in
ment
time, he served
his
Subcommittee
that
billion
Con¬
provide
is
the
program
is
international cor¬
same
intended
Security for the 1961 fiscal
year.
the
At
notice
House
that
with
1959—In¬
Service,
General
ruption, scandal and blackmail.
ministration.
White
;
...
Algeria's; Development
The other day he flatly
House.
Marshall Plan in the late 1940's.
The
Improvement
Standard Oil
than
the
as
that
fights
foreign
reduced
numerous names
launched
was
ganization
past five years he has
the
In
spearheaded
legislation before Congress is
the foreign aid bill, which has
travelled under
Mutual
the
to
Action Research Program for Or¬
rela¬
Security
power
appropriations.
of
pieces
major
substantial
wields
he
position,
his
of
virtue
By
such sacrifices.
One
own
BOOKSHELF
in Congress is the
of the House Appro¬
Chairman
and spread year after
the principal reasons
are
coincide with
views.]
not
may
priations Subcommittee on for¬
eign aid funds, Representative
Otto E. Passman of Louisiana.
point the $41 billion-plus for
the Department of Defense, and
the foreign aid program, which
has grown
of
of the bitterest critics
One
stand¬
tax
re-
Businessman's
the program
-
Federal
the
to
Critic
Bitter
sac¬
j
intended
in
involved
are
Mutual Security Assistance
Program.
meaning. There is no doubt that
the taxpayers of this nation are
rifices.
that
stitutions
the
plane
"
the "Chronicle's"
our
in
spy
fleet the "behind the scene" inter¬
pretation from the nation's Capital
CAPITAL
and
WASHINGTON, D. C.—The
story of the burdened United
States taxpayer is an old one,
Jbut at this time of the year it
has renewed and important
Russian
U-2
incident.
[This
FROM THE NATION'S
of
particularly
of
wake
10 Post Office
I
Square, Boston
Telephone
HUbbard 2-1990
9, Mass.
Teletype
V
"
BS <;<J
■
@FedFRASER