Full text of Commercial and Financial Chronicle : June 25, 1959, Vol. 189, No. 5858

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uuiversir
MICHIGAN

ESTABLISHED 1839

JUN 25 1959

N%Aas^

IUC. U. 8. Pat. Office

Volume

189

Number

New York

5858

EDITORIAL

The

the

scene can

reaction,

hardly fail to be dismayed by

Senior Economist,

lack of it, at both ends of Pennsyl¬

vania Avenue to the evident

necessity of raising

the national debt limit and to the obvious desira¬

bility of removing the limit now imposed by law
upon the rate of interest which may be paid on
longer term Treasury obligations. Their dismay,
moreover, is not in any significant way related to
action taken or not taken by Congress on the
measures that have been suggested by the Admin¬
istration to deal with the financial difficulties by

which the

cause

reasons

All such difficulties, of course, stem

from the

habit to which

Congress has been addicted since
the days of Franklin Roosevelt of utter reckless¬
ness in the spending of taxpayers' funds, and—
with deep regret be it said—from the absence of
any indication that the Eisenhower Administra¬
tion has any real intention of doing anything to
give the voter hope of basic alteration in this
policy of fiscal extravagance which, if indefinitely
continued, can hardly fail to bring financial ruin
to this, the richest country in the world.

high earnings..

Not

All

good deal to say of late about balancing the
budget and even of debt reduction. Careful in¬
quiry, however, quickly reveals the fact that the
economy ideas of the Administration are modest,

/ DEALERS \

page

PICTURES

power,

which

af¬

take

ad¬

opments and

Welfare

State," and praises goals toward which the

The

true

scope

of the recent

goal, genuine budget balancing per¬
even more so.
Stabilizing the
budget deficit and the external value

haps

In my opinion, it

reach

significant changes in

focus

Continued

ence

THIS

address by

the

dustry, and, second, the

Dr.

page

the

same

now a

even

Dr. Melchlor Palyi

ago:

are the
prime agenda.
time they are means to
overriding objective. What

franc

At the

an ininclusion of
this information as a vital and integral part of individual
company analyses. It follows that comparative industry
studies have an essential role to play in the evaluaSidney C. Cottle

chief

mechanism.

techniques,

objective,

was

today's PICTORIAL

price

the French price system and income dis¬
been effectively twisted, until even the

had

tribution

Continued

Annual Outing of the

ISSUE—-Candid photos taken at the

Association of New York appear in

years

myriad of devious

Bankers

California

scarcely

problematic thirty-odd
the restoration of the

before the Trust Investment Confer¬
Association, San Francisco, Calif.

Cottle

monetary and

1928, all that .was needed was bal¬
ancing the budget, stopping the in¬
flation, and returning to the gold
convertibility of the currency. (The
budget was actually overbalanced
for
four years:
1927-31.)
For De
Gaulle, convertibility is a remote

requires: first, the preparation
of
closely comparative industry studies
which
determine
and
bring
into
Dr.

French

fiscal reform has been little understood in Europe, still
less in America.. For Poineare, in

to protect against ad¬
can
this be'done

effectively?

is aiming. >

economy

Capitalism With Crippled Price Mechanism

How

ones.

verse

most

cur¬

made to date, Dr. Palyi
advises that the athnittedly

progress

cautiously

seek

investors

that the return of confidence in the

vantage of favorable industry devel¬

♦An

Continued

industries

trends

earning

appraises

present state of affairs as a compromise wherein Acre
has been a "shotgun-wedding of Sound Money with Hie

;

a prerequisite to investing companies in that industry, all of
us would agree that institutional and
all other. 'long-term investors are
concerned with those basic changes

and

auspicious opening up of reform still has a long way to
go before a final reform is achieved.
He describes the

fect

economist

is symptomatic of

nevertheless,

should be

Admittedly, it has also been having a

unaware

rency

opinion today regarding the extent to which an attrac¬
tive outlook for a specific industry

known

heralded France's turn-about in economic

The specific role that industry studies should play in
investment management is still being debated at conconsiderable length.
But whatever the difference of

the White House has been reiterat¬

ing its opposition to some of the more extreme
suggestions for still greater extravagance, many
of which were born of a recession which has now
vanished.

other than

widelypolicies and
finds most significant the attempt to return to a free
market price mechanism, to peel away the welfare-state,
and to abandon managed money and escalator dames.
Internationally

of these infirmities and to the

apparent indifference to that cause.

To be sure,

Chicago, Illinois

study of chemical
as a whole does not
earn an exceptional high rate of return on capital.
Dr.
Cottle points out: (1) 1953-57 earnings on capital were
10%, excluding du Pont, quite close to 1935-39 average;
(2) industry ranking was twenty-third; and (3) chemi¬
cal earning's return as a per cent of composite rate for
major industries dropped from 136% in 1935-39, to
98% in 1947-57 and to 87% in 1953-57 period. Author
discusses the attractiveness of chemical companies for

Treasury is faced. It goes much deeper

to the root

By MELCHIOR PALY I

Stanford Research Institute

Contrary to generally-held opinion,
industry sample shows the industry

Copy

French Stabilization

COTTLE*

By DR. SIDNEY C.

Cents

The Balance Sheet of

Appraising the Chemical
Industry and Components

thoughtful observer of the current Wash¬

ington

Price 50

7, N. Y., Thursday, June 25, 1959

page

Investment

SECTION.

State, Municipal

Public

Housing,

State and

STATE

Municipal

AND

MUNICIPAL

Members

MONTHLY

THE FIRST NATIONAL CITY
-

;nt
bond department

30 BROAD ST.,

Burnham and
MCM.CS NCW YORK

Company

AND AMERICAN

CABLE:

JJcaler

T. L.WATSON&CO.
ESTABLISHED

v> ; **£

cJ*1j!f.jx

1832

Members
New York Stock Exchange

A!A>?*!-!-!

American

Stock Exchange

Active
Dealers,

BROAD

STREET

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rirst

£oatAu>e*t company

•

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On All

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EXCHANGE

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Teletype NY 1-702-3

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DEPARTMENT

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national

40ExchangePlace, New York5,N. Y.

1 NORTH LA SALLE ST.

CHICAGO

For

Municipals

Goodbody & Co.
115 BROADWAY

the

Correspondent—Pershing & Co.

securities

MEMBERS NEW YORK STOCK

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dallas

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del Mar,
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Pasadena, Pomona, Redlands, Riverside,
San Diego, Santa Ana, Santa MonicA

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OF NEW YORK

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STREET, NEW YORK 5, N. Y.
• 014-1400
COiURNHAM
TELETYPE NY 1-22S2

|5 BROAD

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Encino, Glendale,

LETTER

BANK

Public
'■

Offices in Claremont, Corona

view

burnham

CORN EXCHANGE

nt ; •

Street, Los Angeles 17,

Associate Member

the

CHEMICAL

•

628 So. Hope

Members New

BONDS

HAnover 2-3700

Underwriter

Lester, Ryons & Co,
California

Securities
telephone:

""V

and

U. S. Government,
;

iivs,tngs association

300 Montgomery St., San

Francisco, Calif.

The Commercial and Financial Chronicle
2

The

Brokers, Dealers only

For Banks,

A continuous forum in which, each week,

Try "HANSEATIC"
When time is

participate and give their

and experi¬

our large
enced trading

This Week's

Forum

different group of experts
and advisory field from all sections of the country

8n the investment

important to

you,

Security I Like Best
a

for favoring

reasons

they to be regarded,

are

are not intended to be, nor
offer to sell the secuiities discussed.)

as an

Pacific

Western

San Francisco, Calif.

Alabama &
Louisiana Securities

Railroad—Ernest

\ Stent, Partner, Hooker &

(The articles contained in this fornm

department

help you reach the
OTC markets you need —

Participants and

Their Selections

particular security.

Fay,

(Page 2)

Bought—Sold—Quoted

can

faster.

into

Partner, Hooker & Fay,

A nationwide

private wire

system, plus a wide range
of contacts, assure you of

need in your Overthe-Counter problems.

Exchange (Associate)
and Pacific'Coast Exchange
D

...

r ~

trial land along the

Steiner, Rouse & Co!
Members New

......

„

'
' j

point in its favor. In a highly com-

rights-of-way.

Birmingham, Ala
Mobile, Ala.

Pacific represents rail- This endeavor was carried even petitive industry, the present manto the point of purchasing large": agement group has brought net
acreages which were then im- sales, from $6',385,576 in 1949 to a
proved by the installation of utili- point ywhere they have averaged
(1)
Practically all its line are
ties, roacis and drainage so as to nearly $18,000,000 sales for the
main lines.

reduced to its simplest
terms for the
j following
«
* — reasons:
-- —-

)

This, without
outside financing or
Milpitas resulted from this policy merger acquisitions. The increase;
make them attractive

(2) Practi¬

Corporation
5

120 Broadway, New York

BOSTON

•
•

Wires to

Private

going right
through to the

Teletype NY 1-40

PHILADELPHIA

and

end

CHICAGO

•

(3) There is

V7V

brokerage service

Unlisted Securities

Exchange Place. New York 5
Phone: WHitehall

3-7800

Teletype No., NY

1-2762""

^pact_wp<stv
v

Unp

moin

Tta

(

for Banks and Dealers
40

problem.

(6) It has ho snow

Security Dealers Ass'n

all

■

rapidly

two

growing

aieas-

show

Its

(8)

branch ofiices

and

Jr.

line

secondary

e
one

OUtstsndinfi.

•*

'•

•

'•

information

or.

write

Yamaichi

Securities Company :
r'

;

of New York, Inc.

Affiliate

.;■..

Yamaichi Securities Co., Ltd.

Y'SL
"

Tokyo, Japan ;

Brokers

:&C Investment' Bankers.

111 Broadway, N.Y.

s(ock

vtewr'cuHenf liabilities, and cash

Investntent point rf

best. Current assets are nine times

Coast Exchanges and,

and Pacific

from

regarded

with

growth

6 COrtlandt T-5680

JOHN

;

UNKLES, JR.

STOCKS

that '

they
produce
some
and ^catalog as in
stock about 4,000 items,7 total ....
in-<

East Orange, N-'J-

(9.) With the greater part of its
line
traversing .the
un-

distribution

worthy of note here. Despite the
fact

•

Partner, Nugent & Igoe,

exceed

alone

governments

INSURANCE

LIFE

and
total

current liabilities. The Thomas &

risk) J

moderate

-Betfs i system

___

Call

ment, has -in its own

••

current

President,

the

ability iO
part of the Produce, they and their families
is reflected, ownx over 40% of the total stock ,

At'A

•" VI.

For

) requirement,
dividends to come. W es4^^:ift.^inelyi adequate financing, this
Pacific is listed on the New York; company measures, up with the

(North-South) is fed traffic from
the North by the Great Northern
and from the South by the Santa
Fe.

■

;

careful

same

the

STOCKS

#
:

friendly
The operating. * JJ. depth

the

4Vr\irylvf

mr\»«n

should

our

JAPANESE

hard-Hitting Nestor MacDonald,,,
feeling have built a, smooth-working team

done

more freight, more. earnings,'^outstanding,
and my guess is mere and biggerOn* the " third
in

Its maximum grade is very • in

(5)

connects

line.

consideration

easy.

Members

relations

& CO. INC.

Render

foster

the

stent

truest

each

management. All this

GROSSMAN

Thomas,

have

railroads

which has accounted for
personnel on the passenger trains: .th]s progi:05S. tPractically all the
are
carefully
picked % for their present officers have been witn
courtesy and interest in the com- fjhe company 15 years or more.,
fort of the passengers,; and labor To show the confidence manage-

passenge
train is run

despite the sales already effected.

toward

each way

for this same period is even more
impressive. The Chairman, G. C.

much

j
re¬

WEINBERG,

in net operating profits of 1,000%

(4) Only one

and has benefited the railroad.tre-

commuter ;

traffic.

years;

mendously. Thousands of acres are
still held for future development

Few

other.

SAN FRANCISCO

Principal Cities

three

last

to industry,

Ford assembly plant at; benefit

The huge

•

originating at '
one

WOrth 4-23005

its

haul freight;

Exchange

American Stock

all

freight is long

Established 1920
Associate Member

Direct wires to

cally

Y.\

New Orleans, La. -

Western

New Yoik Hanseatic

Exchange "

NY 1-1557

HAnover 2-0700

roading

York Stock Exchange '

Members American Stock

—,

19 Rector St., New York 6, N.

aggressive development of indus-

ftaiiroao

pacific

western

John J.

Igoe, East Orange, N! J. (Page 2)

goodfrailIB

of
~

phase

—

Unkles, Jr., Partner, Nugent &

loading that is vigorously*PU*-r
sued by the management is/ the *

American Stock

part of '

«-

Thomas & Betts, Inc.

developed

has

profitable

highly
system.
a

Another

Members: New York Stock Exchange,

getting the complete cover¬
age you

the

San Francisco, Calif.

States.

United

STENT

ERNEST

Thursday, June 25, 1959

(2842)

25,000

If you can't find a

home for certain of

your

items

....

Members New York Stock Exchange ^ventories only represent about
populated Nevada deserts, there is Thomas g Betts Inc.;,fo?ur months sales. This is accomno need of maintaining and man;
'plished by using some 850 disning stations along the lines.
There are three ; basic in- tributors, the principal ones being
(10)
The
railroad
has- been gredients which Will insure .the> General v'Electric
Supply , Co.,

main

through a drastic financial reorganization which left it in
strong
financial condition with
good earning power.

Trading Interest In

American Furniture

With this

Bassett Furniture Industries

Life Insurance Co. of Va.
Commonwealth Natural Gas

SfRADER and COMPANY, Inc.
LYNCHBURG, VA.
LD 39

TWX LY 77

—-5-2527—

Private

Wire

New

)

York

City

starter, when he

assumed

the f

t Presidency,

Whitman

set

right

efficiency
tion.
in

All

and; profitable operaf
the' new improvements

railroad

eagerly

were

operating technique
installed. Complete

dieselization

frai cfbt

mnrlfiri')

manage

house

(3)

m e n

cars

outlet

1,300

(company

items

The

points.

employs some 115 sales-

service the distributors;
| arbd^promote the sale of Thomas
j men ;,to

examine

Thomas

4;& i Betts products with particular
^emphasis on new items.. Here it
ffshbuid - be • emphasized that the
Icqmpany is constantly alert in its
iresearch f.and development pro-igrhip; New products accounted,
.pdr;-r-$l,600^000 .^iof )'sales in 1958.

Ret+o
o

t h

points.

e
•

0n the mat¬
^er of

gr0wth,
niind

bear

com_

pany

John

fjne

broa(j

the

cars-

Unkies,

electrical
racewav

Write

forvour

Monthly.. Stock

Digest, and ou r: other reports
that give you a pretty clear ).,
f1
picture, of the Japanese
r
economy as a whole. i,;;;
•

)There,

manu-

factures

accessories and

are other new. products indevelopment now which will pro¬
duce an additional f$3,000,000 of

Jf:pannual salps;< As-fu^her evidence

conductor®^

•»

61 Broadway, New

Telephone:

lacewal accessories and conauctoi company is buildmg an additional
was
?on,n?.ct°rs' .many of which are 92,000 square feet of; plant space
;ns ailed with company designed this year, without outside financcompletely modernized with'vista tools and equipment. These prOd- .ina o£.course Labor relations are
dome
cars;
and
modern track uofg
used
throughout "entire
^
^
^
'
maintenance, equipment was put eiectrical systems, starting at-the excellent.,-The company has not
in service.
generating
station,
through'' had a work stoppage for 13 years.
nhsnlWe

venlaced

Opportunities

r>£»l'a

freight

&, Eetts'

Thomas

'about

Adequate
us

comparatively pearly
date;
unprofitable branches "were abandoned;; centralized traffic control
was
installed where it could be

beneficial; -Smoidern

Coast Life

; effected

was

buy and ware-

ioif,

aki

Able

Fred financing, Let

work to
further improve the physical operating condition of the railway
and develop it ;to a point of high

lionofipicil*

est

T¥T.„

. of
any common^ stock Graybar Electric Co. and Westinvestment, namely: (1) .Growth, These
inghouse - Electric Supply .. Co.
distributors

success

one

This

not

York 6, Nf* Y.

BOwling Greeit 9-0167
an

offer or solicitation for

orders for any

particular securities V

arp

primary and secondary^ distribuThomas & Betts'^.has 1,479,296
how— tion lines as well as in original shares outstanding Earnings have
ever, is the fact that in 1931
it equipment such as transportation..-^- ,
^
*lgharp fnr tuo
placed in operation the "Inside equipment, signal systems, home
g
^ mS1
are or
Gateway'1
a
new
North-South appliances, communications, busi- *ast three years. Earnings for the
main line bridging the 111-mile ness machines, instruments, elec- first quarter of 1959.were"34 cents
..One

most

the

interesting

features of tVestern Pacific,

Bought

—

Sold

—

Quoted

between

gap

Keddie

Northern

Great

the

and

Santa

the

Railroad at Bieber.

This

new

Walter C.
Russ

Gorey Co.

Building, San Francisco 4
YUkon 6-2332

Teletyp SF 1011 & 1012

Southern

which

Legg

Company,
Y.

Troster, Singer & Co., N. Y. C.

promised for electronics,

with

lines

originated

through the efforts of the

Atchison,

thef South
on

and

the

the North.

Though it has b^en in service for
28

years,

always

it is still and probably

will

the

last

major

piece of railroad construction by
anMt ■* s «ok ss

ram

common

carrier, railway in the

found,
growth

year

P™bably
total sales in

51-5"

excess

instru- and in the past 10

of $20,000,000

years

has never

to carlY down over 10% of

appiiances we need say no more/Wales to net after taxes, by itself
Further, we are told ; that the a remarkable- record. The stock is

This

utilities

the

its

double

may

seen

much

building by

years

in the past 60 years.

means

market

for

the

greatly

expanded

company's

prod-

nearly 4%

The management

perhaps

of Thomas &
the

strongest

Over-the-Counter

Quotation Services
for 46 Years

its 80 cent dividend.

I firmly believe that for assured

long-term growth few stocks will
measure up

to this

one.

With most

National Quotation Bureai

stocks in this industry selling 25
times earnings

ucts.

Betts

currently selling around 21-21J/2

capacity in the next decade." per share over-the-counter to yield

means

have

all

States

of 1959

share. Management has predicted

^ent^?easingd uset0Saelectrfcal failed

power

freight

Great Northern

Baltimore

Sierra

East

competes. Since

its

the

United

can

think

When

well

Pacific

products

course

part

Wire System
John

ene^r'ThornS

Betts

"bridge" line, by ,far the greatest

for

Mountains

^
g.

follows

the foothills

along

Nevada

the

line

tronic devices, aircraft-and mi5-: an(j earnings for the

Betts

less

higher, Thomas

than

times

earnings is grossly underpriced.

Established 1913

46 Front Street
CHICAGO

New York

4,ftLY,

SAN FRANCISCO

■

Volume

■'

189

Number

5858

...

The Commercial and Financial Chronicle

(2843)

I N D E X

Growth Industries of the Future
-v'-'

*':.;>

By LIONEL D. EDIE*

Chairman of the Board, Lionel D. Edie
f

Company;

Investment and Business Counsellors

;

Articles and News

.V/v-'-VT"lr

Market

economist,

in fgeneral

decrying current tendency- to : speak; of
terms, specifically lists forty industries
grouped according to their likely rates of growth, ranging from
25% to 200%, over the coming ten years. ■ Warns against

^mechianicalty'projecting historical

Page

Sheet of French Stabilization^

Melchior Palyi

When stocks

Appraising the Chemical Industry and Components

rt;—Sidney C. Cottle—-——

■"

is not

growth

V :
the

:,V.'"

illuminating

Cover

Growth Industries of the Future- -Lionel D. Edie_
■y*.i-'-.f;-. v,-":
•'// ••••

T-.

product,

but

cnppifip ".'and

growth

nnnnrMa

on in
vt+ViPsP-

on^

Washington and elsewhere

Hnvs

whpfhPT*

hnvfi

your

turn

out

only comeback

Wall!

__£■•<

Obsolete Securities Dept.'

99 WALL

•

)

STREET, NEW YOfcK

Telephone: WHitehall 4-6551

The Gas Industry Looks Ahead—J. Theodore Wolfe
4 ^.: 7 -v. *...
" ;
w^v. "
'v-.v'--':. v.

having relation toy

average^ens^
nol growth of gross a fornv of argument that is Koing> national

-■

'-.'■ morp

joke,

„_

record into the future; and

■

My topic

THE SPOOF

__Cover

Jndicates
^Indicates

jim ooKifiirt;

»-

emphasizes importance, of rpart played by Defense activities.'
^seven
'tools of
.seven >tools
ofanalysis
analysis for ?:studying
comparative%./, tpS'f Accelerating Ford—Ira U. Cobleigh—
studying comparative
-fe?.■ growth potentialities, "i .W' &•'''I •*-'
V-l-:; •'' \.v./--- ;'
;

1..

The Balance

growth

licHTcnsra

B. &

why Much Boom: No Bust-Arthur R. Upgren—

•*

'''■

;

r
'

-*.-»•

•

*■

.»

*food fair

properties
down- to" indi%

<<vidual

mists whp say We -have a growth:
v: bend of
only 3 % "f and we hav$

Indus* f

£ to
'

-::;1

■

;

want

talk about the

c o mp a r

?! ;growth

:';do

at ive

;

■

There

Edie

Lionel

everybody

how you came
About

and

Significant Banking Events—J. Regis Walthour___

industries
as

to be involved in

standard
uranium

per

alaska oil
>

had

think

not

* •

have

empire state oil?

Doing Business with the Russians—O. V. Tracy

budget would change the rate of
We

*purepac corp. ;

^13

better.*/.

Gainsbrugh

!
}

;

'/'CJ-

growth materially,

equity oil

Modest Pickup in Capital Outlays Seen by First National

deal

great

ifc

public interest and attention given
subject of growth. Most of
it has been in general terms. We

year

ago,

came

business

have

and wanted

if I could undertake the

know

rate

reeves
soundcraft

City Bank of New York

*Prospectu«

request

to the

executive
to

10%
other

...

The Economic Outlook at Mid-Year—Martin R.

al-

are

Confronting Petrochemical's Excellent

Outlook—P. L. Fiichards

that running bigger deficits in the

to explain just

the task.
;

some

where it is less than 2%
annum

ject of this kind it is rather helpful

are

^;found that^
j ;w hen; y o u
^tackle a sub-

but. 6

-annum

industries

American

Particular Challenges

ready- faced Vwith a growth outiOok that is not a mere; "3%i per./

have ;.:'often

jj of - forty lead{?ing industries.
,

2/.he

out* J>";

kin the

!' -coming decade

raise,5 that up to 5 % and - the
way to raise it is to run a bigger
Jeficit in the Federal budget.< I
point out to you that a third of

academic; school

thought which

study of the growth outlook for
leading ,t industries
in
this

way

business

Manufacturing Chemists'

Association

that the only
to maintain growth in Amer*

ican

the

John T. Connor Is Chairman of

says

have

the rate of 2%

;

T-r-f:

J.F.Reilly&Co.,Inc.

■

inflation

Regular Features

year.
If you
wanted to discover'
Where was there superior growth;? do not have inflation, theyf say
As We See It (Editorial)
...Cover
and
where
was
there > modest you will not? have the growth.
We have another point of view
growth and where was there little
Bank and Insurance Stocks.
in financial circles in Washington
or no growth.
l.L
X
27
.....• ■■■■■
•'■.;
which says that we want.sustain¬
; -V'A / • -.
/' 1;
r~ .- V ,
'S Demand for Pinpointing Growth
able growth and in order to have
Business Man's Bookshelf.....
11
44
/•; The growth concept, in sweep- sustainable growth it is essential
i"
'Hl-l
' ' ' 1" ■ '"*■'■■■
''
f-ing generalities, seems to have to have tight money most of the- ? Coming Events in the Investment Field-.l:.^.-;
;
8':-lr
lost much of /its value.
The de- time. We have a great many sur-^ ;
Qmand today is to pinpoint growth veys taken these days of the plans
j
»A
; /
; f down to individual, industries.
- of
business for capital expendi- j ;
1®ro^eir Investment Recommendations.
8
11?
TTirct
nf
nil T bnd fn dpridp tures, or the appropriations; by / s - -• *'*
' ;
'
(
/
•
'/■
t... r ifaii,/
:f:. riau -i
qec
- h
{
f
mnitni
PvnpnHiturps
Einzig: "European Trade Areas and a New Comuetitive
Threat"
IS
Competitive Threat" 18
1 what were the leading industries./ business for capital expenditures.
For that purpose, I took a classi- Growth has been discussed ad in*
From Washington Ahead of the News—Carlisle
Bargeron
16
/fieation that had been setup by
in general terms, but there

^country.- He

Air Products

Pacific Uranium

■

Ling Electronics

„

Electronic Capital

"Wnciiintrtnn

was

- with- individual
industries
and making comoarisons betvveeii

eases

A-•,

And then, I had

•.

t/-

to decide how,

going to make the study.

them

I
to

to -set up certain tests,
decide -what tools to use.
•

Indications of Current Business Activity_.i______.__-.

Mutual. Funds

Singer, Bean

I have nothing

against the peo¬
ple who have discussed "growth in
i
*
general. terms.
I have • done ? $
;
Superior and Inferior Growth ■-.« great deal of that myself but I
'
am.
Area
'■' */' - • ;
pretty well through with it
I
have
graduated from - talking
The
results show
that about.
about growth in sweeping gen-/
f| one-third of the leading industries
eralities, and I feel a. little: bit
1} in this country have ahead of like Marc
Antony at the funeral
!| them a growth trend, over a ten¬ of Julius
Caesar,* who said, "1
's year period, of from 60 to 200%.
come to bury Caesar, not to praise
These are superior growth areas.
him"; I am not here today to
.They represent about a third of
praise or criticise the authorities

1 had

Reeves Soundcraft

has beeni-little; getting dowp to

h the Bureau of the Budget down in

&
News.About Banks and Bankers.——20

mackie,

inc.

40 Exchange Place, N. Y.

HA 2-9000

Observations—A.

■-

■

all

growth trends. Their growth over
the next ten years will probably
be only 15 to 20%.
Then there
is a middle group that is half-way
between those two, with a ten-

growth

year

potential

This breakdown by thirds,
it seemed to me, would be rather
60%.

tional

York

Mr. Edie before the Na¬
Industrial Conference Board, New

talk

Our

Reporter

Our

Reporter's

Governments

Report
-1

subject.
Tools

over-emphasis

for

Railroad Securities

the

"-V Prospective

Comparing Growth

tackle the

comr

Security

tries,

—

you
off a

find that

bit about what I have used

Continued

the

page

The Market.

rT.

and You—By Wallace Streete—_——

The State of Trade and

PREFERRED STOCKS

Spencer Trask & Co.
Stock

and

Reg. -O.
B.

Park

DANA

Patent Office
COMPANY,

2-9570

4, N.

Subscription Rates

N. ,Y.

Subscriptions

President

Dominion

TELETYPE NY 1-5

TELEPHONE HAnover 24300

plete

Nashville

Chicago

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Worcester

statistical

records,
state

Other

issue

corporation

and

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Offices:

Chicago 3,

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1°5

—

market quotation
bank clearings,

etc.).

$45.00

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(Telephone STate 2-0613).

and
per

rate

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per

year,

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of

year.

VIRGINIA

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account

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the

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exchange,
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i'unus

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CAROLIN,

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CAROLIN

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the

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Bank

news,

^mjth

WEST

VIRGINIA

Thursday (general news and ad
vertising Issue) and every Monday <comEvery

Territories

Pan-American

Thursday, June 25, 1959

Febru¬

■I

Other

matter

25, 1942, at the post office at New
Vork, N. Y., under the Act of March 8, 1879.

ary

Publisher!-

to 9576

SEIBERT,

For the

MUNICIPAL BONDS

seconu-class

Possessions,
DANA

bv William B. Dana

1959

Company
Reentered

,..GEORGE Jr MORRIESEY, Editor
WILLIAM

must carry on I

Place, New York 7,

REctor
....

CROSS

You

CHRONICLE

FINANCIAL

RED

Industry

Exchange

ST., NEW YORK

Boston

Angeles
Chicago

Your

—

Albany

Los

...

The Security I Like Best

BROAD

Dallas

Cleveland

Securities Salesman's Corner

you have "bit¬
tough assignment, so I
thought that perhaps at this point
I should explain to you a little
ten

York

...

Offerings

parative growth of various indus¬

WILLIAM

—

T*~e vuivuvitr(CiAL and

New

...

Securities Now in Registration

Published Twice Weekly

Members

Philadelphia

Thus when you

•.

specialized in

;

Direct Wires

*■

San Francieco

Public Utility Securities

Washington

have

general growth, but I am here

to bury the

City.

For many years we

Teletype NY 1-1825 & 1-4844

May—4
v

industries.

Now, at the other extreme, you
have one-third
that have slow

Wilfred

'»qq23Z3X3

&cot

RICHMOND,

VIRGINIA

The Commercial and Financial Chronicle

(2844)

of which $850 million

Thursday. Jrizxe 25, 1959

has gone to

Latin America.

Observations
—

States

media

ment

HARD AND SOFT

Fund

Loan

the

(to

tune

sive review of

the extent and

ter of

our

instructed

ar¬

Conditions

Fresh

for.

word

the

amounts.

that

citizenry
the

roting

prohibitions,
"institutional Shy-

The Fund has disbursed

total of $3.3 billion in

drawings,

of which $961 million has gone to
the 15 less developed countries of
Latin
America
(including $8%

there are par-

or--loans

nomic

tributed total loans of $4.4 billion,
of which $923 million went to 15

relief

alleged rigor and frugality prac¬

less

law's

Woods

Bretton

organs

are

strictly confined to disciplining
ground rules by their articles of
incorporation, that even so their
operations have been extensive,
and that a host of other agencies
are standing
by to take on soft-

arrangements.

money

The Fund is not designed

to be
dole-dishing
agency.
It
is
mandated to employ its funds, to¬
gether with sound rules, only with
a

borrower who

show that his

can

American
countries.
Of
September's
$350
million''international loan to In¬
Latin

dia, $100 million was give n by the
World Bank,
witfy more, fo come.

from ond-

It is most

slightly

year, and

Also

major

Public

of credit

U. S.

to realize

important

that

in 1960,

able to member governments that
have satisfied the agency of their

Brazil

intention

and

house

Bank
in
was

cannot

July

Thus

tread.

while

1956,

her

in too great disorder to

capacity to restore

qualify for World Bank help, suc¬
These principles apply ceeded in
securing a $151 million
developed and underdeveloped loan from Export-Import, with an

balance.
to

countries alike."
articles

And

the Fund's

specifically admonish the
that

managers

they must not be

guided by members' "domestic,
cial

so¬

political policies."

accompanying

explanation

President Eisenhower
is

friend

good

that Brazil

and

valuable

ally." Ex-Imp loans to all
tries

since 1957 total

from

Law

480.

commodities:

nishing

facilitates

This

the

come

$1.6 billion,

$14 million of
$31 million total; and the UN
Special Fund launched last Janu¬
ary under the direction of Paul
Hoffman, as compromise with the
a

Comptroller of the State
will sell at his office

June 30, 1959,

of New York

ment

Albany, New

at 12 o'clock Noon

ments under the

dend

Bank;

banking

institution"

pro¬

corporate profits

The

$42,000,000 July 15, 1960-1974
$8,000,000 July 15,,1960-1979
$24,000,000 HIGHER EDUCATION BONDS
maturing $1,600,000 annually July 15,
1960-1974, inclusive

$18,000,000 MENTAL HEALTH CONSTRUCTION
BONDS
maturing $1,200,000 annually July 15,
1960-1974, inclusive

$8,000,000 GRADE CROSSING ELIMINATION BONDS

course

upon

application to

Divi¬

rate—$12%

of business fluctuations.

years

Million Below 1958 Total

Commerce

time in history.

Clearings Down 9.4% From 1958-Week

clearings this week will show a decrease compared with
year ago. Preliminary figures compiled by the "Chronicle" based
upon telegraphic advices from the chief cities of the country,

indicate that for the week ended

Saturday, June 20, clearings for
cities of Ihe United States for which it is possible to obtain
weekly clearings will be 9.4% below those of the corresponding
week last year.
Our preliminary totals stand at $27,205,635,708
against $31,034,004,938 for the same week in 1958. Our compara¬
tive summary for some of the principal cities follows:
all

Week End. June 20—

1959

New York

Philadelphia
Boston

1958

$14,376,517,330
1,428.216,043
1.226,000,000
303,882,132

Chicago

$18,200,658,056

1,262,233,516
1,160,000.000
844,004,237

—21.0

+13.2
5.7
4.8

—

Foreign Investment Trebled in Past Ten Years
than ten years U. S. industry has almost trebled its
investment in Western Europe, according to the current issue of
In less

"Report on Western Europe,"
monthly survey.

the

Cliase Manhattan Bank's bi¬

In 1950 the total of "direct investment," representing -both new
.capital and reinvested profits of U. S. companies operating in the
area, amounted to $1.7 billion. "It is now an estimated $4.5 billion
—and growing even more rapidly under the impact of the European
Common Market," the Chase Manhattan publication says.

"The postwar pattern of American investment in Europe—
highly concentrated by country, by industry and by company—now
is gradually changing under the impact of the Common Market
and the

accelerated flow of U. S.

capital to Europe," the survey
period, most of the increase in U. S.
from reinvested profits of large
wholly-owned subsidiaries. The current trend is towards more
new capital from the U. S., and more joint ventures with
foreign
added.

"Jn

investment

the

postwar

Europe

came

firms."

Expects "Non-Inflationary" Steel Contract
Steel

union

chief

representatives will

medicine
an

program.

annual

Bank

David

soon

sign

McDonald

and

non-inflationary

steel

company

agreement
fringe benefits—unless last-minute

wage

calling for moderate wage or
haggling and bumbling lead to a shutdown of the steel industry,
according to "The Iron Age," national metalworking weekly.

infla¬

binge.

But surely the alco¬
holic needs less, not more, of the
stuff that got him that
way!

"If

anything happens at the last moment to cause a-ditching
attitudes on both sides, a long and bitter steel strike
feelings will result," the maga¬

of present

with its inevitable harvest of hard

Warren E. Durdle

zine

warned.
If there is

Joins

Goodbody & Go.

off

furnaces

and

unnecessary short shutdown, the cost of taking
the loss of workers' wages will be a needless

waste, "Iron Age" said.

(Special to The Financial Chronicle)

„

•

: v

•

? .♦

.goo

BOSTON,'Mass. —Warren

Durdle has become associated with

Goodbody & Co., 140 Federal St,
was formerly an offi¬

Mr. Durdle
cer

Comptroller, Albany 1, N. Y.

unwelcome

for the debtor nation
tion

Principal and semi-annual

Descriptive circular will be mailed

are

same

to be

rules

the past two

"the first

Nationwide Bank

realistic

the

Average, factory earnings increased to $90.32 in May,

exceeding $90 for

some

Businesslike

over

and

Labor

workers.

high time to
stocktaking. For
this trend toward laxity may well
be more harmful to the recipients
than to the giver of the largesse.

maturing $400,000 annually July 15,
1960-1979, inclusive

interest January 15 and
July 15j
payable at the Chase Manhattan Bank, New York
City.

seem

about

Departments announced that a
decline of 238,000 unemployed from April lowered the May jobless
total to 3,339,000.
Comparatively, this was 700,000 higher than
May 1957 but 1,500,000 below 1953. In the interim, employment
has risen by 1,004,000 to attain a new May record of"66,016,000

With
the
"hard money"
dis¬
ciplining agencies being dwarfed
by the onrush of give-away bodies,

for

were

May's Unemployed 1%»

Note from Alcoholics Anonymous

it would

old-age and survivors insurance

disbursements

billion—in each of the periods, not having followed the swings of-

posed by President Eisenhower.

pause

SERIAL BONDS OF THE STATE
OF NEW YORK
maturing as follows:

"Inter-American develop¬

York

$50,000,000

Dated: June 23, 1959

Most of the gain over the past year has been in payrolls. As
compared with the first five months of 1957, transfer payments
were also up substantially, reflecting mainly larger benefit pay¬

'■

(Eastern Daylight Saving Time)

ARTHUR LEVITT, State

7 77

income set a new record
period at an annual rate of $369% billion, $20 billion above
corresponding months of last year, and $25 billion above the
period of 1957.
7
~
*
: ;

"in

process"; the International Devel¬
Association (IDA)
affiliated with the World

from the previous month.

For the first five months of the year,

the

give-away
proposal.
(The U. S. has thus far subscribed
$10.4 of a $26 million total.) Two
other important "soft money" in¬

opment

types of income showed relatively little change from
Aggregate transfer payments were unchanged, as outlays

SUN FED

are

were

for the

(In the U. S.

in 1958 contributed

and

The

weekly earnings also

April.

fur¬

$4,6 .billion

institutions

manufacturing, gains

under unemployment compensation programs declined again, while
disbursements under the old-age and survivors insurance program

emergency

grams has
since 1954.

Within

Other

Agricultural
Trade
Development and Assist¬
ance Act provides for the sale to
foreign countries for local cur¬
rencies.
of
surplus agricultural

ternational
coun¬

with

implementing

Program

World

also in trade and construction.

widespread. Increases were particularly pronounced for-the durable
goods industries, especially for-metals and machinery manufac¬
turing. The. gains stemmed primarily from higher i employment,

continued to increase.

in addition to this pair of
austere, businesslike lending in¬
Gross economic assistance via
stitutions, there is a rapidly grow¬ U. S. grants to the less developed
ing number of agencies extending countries from 1951-1958 totaled
soft-money
loans
along
with ($7.4 billion, and "uneconomic"
grants, with due regard for the loans (again outside the Bank and
political interests involved. Some Fund) another $3.9 million. Re¬
of 1hese disbursements of loans cent
progressive increases reflect
and grants come directly from the our reallocation of
appropriations
U. S. Treasury, and some <are fi¬ from
military to economic aid.
nanced jointly with other coun-*

but is avail¬

source

April-to-May increase in income -.was in wages
and salaries, which were up $2Vz billion at annual rates. Payroll
advartees centered in manufacturing, with substantial increases

of aid and

source

drawing is in support of a sound
ensuring stability at real¬
istic exchange rates. In the words
The International Agencies
of
its
Managing. Director, Per tries.
Jacobsson: "It is largely through
Our Export-Import Bank, which
Also outside the "hard money"
the application of sound princi¬ is committed to the
furtherance of Fund and Bank area are inter¬
ples that the Fund is able to con¬ our foreign
policy
along
with nationally sponsored agencies in
tribute to the
observance i of a spreading free
enterprise through which the U. S. liberally partici¬
degree of monetary discipline in lending where private business is
pates. These include two United
the member countries. The Fund unable to
do the job, frequently Nations
agencies:
its
Technical
is not therefore just an additional
steps in where I.M.F. and the Assistance
program

of the

Most

eco¬

other

assistance
participation on all of the Bank's through the use of surplus agri¬
cultural commodities; and finances
loans.)
donations of surplus food owned
The Numerous Soft-Money
by the Commodity Credit Cor¬
Agencies
poration. The cost of these pro¬
third to one-half represents

evidently is not realized that

these

developed

(A proportion 'ranging

The Hard-Money Twins

was $25 billion, or 7%, higher than a year
earlier, - With consumer
prices advancing only fractionally during the past year, this rise
represented in large part real gains.
C

achieve

political,

many

objectives which
the United States may have in a
given country. And then there is
the President's Special Authority
and
Contingency
Fund.
These
agencies all operate as part of the
Mutual Security Program, which
will have spent $3.9 million this

million plus $2

million standby for
Bolivia, and $11 million to Brazil
last week).
The Bank has dis¬

necessary

the

any

squawks an¬
A- Wilfred May
nually deliv¬
ered by their
representatives
at World
Bank
and Fund
meetings against the
ticed in these
agencies' lending
operations. Also these institutions
are
berated
for
divorcing eco¬
nomics from politics.
+7',

May was at a seasonally adjusted annual
billion, $3 billion above April, the Office of Business
Economics, U. S. Department of Commerce, announced. Income

tution is committed to make grants

these

locks" have distributed substantial

Latin

America

under

pair

our

comes

from

Even

Auto Production

Industry

Business Failures

Personal income in

country, and are current year); and the President's
that "only
economic Special Assistance Program ($269
shall
be
relevant
to milliori this year). The latter insti?

their decisions."

rangements is
surely
called

Commodity Price-Index

rate of $376

member

existing

nature

Trade

Food Price Index

and

loan
and
grant
pable of repaying. Its officers are .the ;previous
"Point Four"
Tech¬
specifically barred from taking technique;
into account the political charac¬ nical Assistance ($172 million in

foreign aid, a
comprehen¬

Retail

State of Trade

Likewise with the World Bank.
—
With
committees and elec¬ Its articles confine its lending to
tioneering politicians joining in productive purposes, to loans aid, placing development assist¬
the cry lor enlargement of our which the borrowers will be ca¬ ance on a loan system in place of

WASHINGTON, D. C.

Output

Carloadings

$1.6 billion in its first two years).
This agency constitutes a major
factor in U. S. foreign economic

spawning

Production

Electric

for

extending aid constituting "soft
money" substitutes for the Fund
and Bank, include the Develop¬

By A. WILFRED MAY
OUR FOREIGN AID

United

Steel

The

Soft-Money Disbursements
Other

of Harkness & Hill Inc.

John F. Merrill has also joined
the staff of Goodbody's Boston of¬

fice.

"Iron

Age" said both sides arc bowing, and making their
contribution, to President Eisenhower, who has used the full force
of his

office

price increase.

insist on a steel pact that will not necessitate a
In this instance, Mr. Eisenhower is public opinion

personified.
Final details

the

pact, which may run for two years,
now
and midnight June 30.
It is
hoped that substantial agreement will be reached soon enough to

will be

worked

out

new

between

Volume

avoid

183

Number 5858

banking of furnaces.

before

strike deadline.

The Commercial and

into

This work usually starts several days

.•

Accelerating Ford

Barring

a last-minute hitch, the steel wage agreement will
big "give'' on the part of both sides, "Iron Age" said.
"Iron Age" said that if there is no strike, the market outlook

represent

like this:

Galvanized

sheets

started, and there appears to be
restricting third quarter orders.

inventory

end

demand.

of America
producing

Ford cars;,

.after

third

quarter oil country seamless has already been
Standard structurais are still available for July delivery.

ill!

ons

supply

the

Other Trade Publication

Steelmakers

Expects Steel Strike

Ford

its

nice

ployment! to

Conti-

senger

Sullivan!);

and

the

Until
Motor

models

but it's the

—

public
common

641/i

early

the

mood to sit idly by and see

become

has

So Ford, in

nus

weekly advance and lifted the market to the highest level since

share net for
decade later,
1958, the figure was $1.75.- In between, however, there were five
years
in which net exceeded $4
per share including the peak year

March.

1955 when the

composite

on Nov. 1 heavy melting steel scrap rose
to $36.50. This was the fourth consecutive

also

are

nonferrous producers, "Steel"
zinc, and brass expire
The two big unions in the field are

between June 30 and Nov. 10.

pushing for higher wages, a shorter workweek, SUB, and escalation
clauses. Both sides have indulged in tough talk, and indications of
any kind of compromise are few.
size of the

talks.

about

the

steel

settlement

Indications

from

same

time

Detroit

nonferrous

the

will

that

will

appear

bit later,

"Steel"

models

1960

possibly

GM's

Slim

Line

transmission,

Plymouth's

six

cylinder, overhead valve engine, and Chrysler's unitized

bodies.
major engineering changes for next year's big cars,
is making extensive styling changes on two lines.

Ford plans-no

but it

Steel Output
The

American

Based

Iron

and

Last

Steel

92.8% of Capacity
Institute

announced

147,633,670 net tons. Estimated percentage fbr this week's fore¬
cast is 92.8%./
; '/' ■
A month ago the operating rate (based on 1947-49 weekly
„

production) was *165% and production 2,650,000 tons. A year ago
the actual weekly .production was placed at 1,666,000 tons, or
103.7%.

in particular, was a

differ¬

By early settlement of

off to
models.

its wage contract, Ford got
swift start with its 1959

design changes

No drastic style or

production is based on average weekly production

for 1947-1949.«

Steel production set a monthly record during May, when
steelmaking furnaces poured 11,600,000 net tons of ingots and steel
for castings, according to the preliminary report of American
Iron and Steel Institute.

affurpesivp-

inn

ba<de'

arinrned

and

thp

most

the

model

un-

2-door

bSttfetod
In
Big Three.

event, the models have caught

&U.1 warae*
time best year

in total sales and

the first 4

For

total

sales

car

made in Germany

Continued,

page

—

should

provide answers to such as Volks-

wageri, Renault and Volvo.
J
in Canada the future is bright
Ford Motor Company is so
enthused about it that it proposes
and

"e^aTe
eration

Thus it is

important factor in

gen¬

Even the

cfu'ite logical to

motor

industry

argue

should
.

continue in strong position in the
Surging 60s, with 7 million car
years a by no means-improbable
possibility. In such an automotive climate. Ford appears certain
to prosper. The years and millions
the Company has devoted to plant
investment, automation-and modernization are now-showing up at
the cash register, and Ford common is steadily gaining m stature,
dependability of earning powerj
and capacity to increase dividends.
Selling at about 9 times expected
1959 earnings Fom common, at
JlVt, presents possibly the best
current value among motor shares,
and is favorably regarded by a
number of quite sophisticated institutional buyers.

John R. Thomas Now
With

$350 million in 1959;
exciting growth in years

Dempsey-Tegeler

(Special to The Financial Chronicle)

ST.

come.

Ford

the

that

•

history.

thruways and turnpikes.

around
an

all

problem is- being solved,
part rit least,' by all our new

Ford of Canada should show sales
of

most

traffic

of Canada from 27% to 75%,
creating a lush market windfall
for the Canadian company shareholders in the past few weeks.
and

the

group

colle£e
age group
motor-borne and motor-mad

LOUIS,

Thomas

has

Mo. —John

become

associated

delivery types, to huge heavyduty work horses. Ford also has

°TheC Company3 ifa

^^f'SuctsTt

the hasic p c

neeck—such

asasflwawjs

New

York

Exchanges.
been

the

and

Midwest

investment business

in St Louis for many years was

formerly local Manager for Blair

* <* —«•

register the improvement was also
pronounced.
First
quarter per
share net was $2.46 giving rise to
estimates for the year in the order

1870

All this is solid support
present $2.40 indicated

$8.25.

for

the

for

expecting

payout, since dividends
past five years
have
50% of net.

larger

for the
averaged

about

Which brings us

to a broad¬
Ford

Correspondents inprincipal cities
'

throughout the UnitedStates and Canada

UNDERWRITERS AND DISTRIBUTORS

scale consideration of the

per

share annual level instead of
$4.50 as in the past?

around $4 to
.

First

should

note

that

plant improvement program, involving several hundred millions

since

1950, is now paying off in

OF INVESTMENT

Dominick

SECURITIES

Dominick
.k (

Members New York, American &
14 WALL STREET

Stock

Mr. Thomas, who has

1958, and truck sales up 48% in
same
period. At the cash

ade, what basis do we have for
believing that earnings can
be
stabilized around or above the $7

steelmaking the May 1959 output was 163.1 in terms of the basic

the

i^tion assuresjm f

the

monthly peak, was 11,567,745 tons. The April output was
11,281,920 tons.
The output of the first five months of 1959 was a* record

53,369,988 tons, an increase of 74% over the 30,625,007 tons made
during the comparable part of last year. The former record for
the first five months in any year was 52.9 million tons in 1956.
According to American Iron and Steel Institute's index of

—

Ju addition oui burgeon ^g p pu^

1959
50% over

equity. Having noted wide swings
in earnings for more than a dec¬

time

thousands, the

months of

were

poured more than 11 million tons in
previous all-

months.^ The March total,

dieds oi

perhaps, in earnings per share—
and the common has taken on new
elements of investment quality.

The furnaces have now

Further The huge; suburban mi-

were'ma'dc° but pridnTwaTthOT- the manufacture ol"wto twnte with Dempsey-Tegeler & Co., 1000
oughly competitive; and advertis34 models from lightweight Locust street, members of the

tification

of three successive

sea-built entries

over

Anglia made in England, the Tau-

dividend, and provides some jus¬

Output of $teel During May Sets Record

each

its 1960 line will offer

compact lower priced model, the
Falcon. - This, together with its

to step up its ownership in Ford

$8.19.

was

This year, however,
ent story.

*Index of

figure

trying one at Ford with net sales
falling over 35% below 1957, and
net earnings by more, than 60%.

any

capacity and 2,620,000 tons a week ago.
Actual output for the week beginning June 15, 1959 was equal
of the utilization of the Jan. 1, 1959 annual capacity of

year,

that the

to 92.5%

per

$1.82 and

unit offered by the

operating rate of the steel companies will average *163.5% of steel
capacity for the week beginning June 22, equivalent to 2,627,000
tons of ingot and steel castings (based on average weekly pro¬
duction for 1947-49) as compared with an actual rate of *163.1%
of

was

are

last year's,

affect

could

said. Buick will be delayed. Ramblers will be earlier. Outstanding
features

example,

1948

threatening

said.. At least 85 contracts in copper, lead,

The

For

Ram-

Company biers and Larks make a substanfamily secret; tial dent in its customer coverage,

and

1, almost all the estimated

both toward small foreign
to more compact and
ones.
It is in no

own

Strikes

until

and

stock

the

since

cars

Ford basic domestic

pretty much

were

but

trend

Macy's window, so to speak. There
has been considerable volatility.

content

.about Ford's dedi^tq its. basic line of lowest

offering

last week

rest

not

improved its percentage

industry, would ngiake arpra-.

widely owned, earnings' results
comparisons
have been in

ton

is.
of

priced standard cars. That policy
will no doubt be continued, but
Ford is also keenly aware of the

and in the fu-

the past,

earnings

1956,

six week work

"Steel's"

in Ford

We've talked

ture, that "rev up" the net earnings.

510,000 USW members in the steel industry will be involved. And
a large portion of the metal fabricating plants will be shut down

car

Fords

stoppage would do little more than put a
dent in industrial production and would hardly affect third quarter
gross national product'.
That is because most steel users have
planned inventories for at least a six week strike. Outside of steel,
probably the hardest hit industry would be the railroads.

to note

top
management
for the most part,

will

and

Ford has

possible to offer, totally, 60 pas-

War II.

cation

eight week strike, $430 million in base pay, or more than half as
much as they have lost in all steel strikes since the end of World

for lack of steel.

easily identified American car. All
these are very nice and make' it

damage, unless it goes beyond eight weeks. If steelworkers
strike for four weeks beginning July 1, they will lose about
$213 million in wages; a six week walkout, $321 million; and an

settlement by Sept.

quite

matic advance in Ford earnings.

strike

1958r ofc more than 5 A 4 million
units.: The widespread production
good of smaller economy cars may open
up a whole new market of buyers.

the Edsel which ranks as the most

.go on

If there is

•

...

broader

about

In 1957 Ford
Thunderbird; zestful in lines of total car sales.
and
performance; the Big "M" sales were 30.9% of the industry;
Mercury giving contentment to in 1958, 26.4%.
Moving that fig¬
hundreds of thousands (and em¬ ure up to 33.3% or one-third of

Many observers think loss of pay will be the most noticeable

thing

the j same

the

hoping for a labor settlement that won't
require higher prices, but since both sides are on the spot, neither
can
expect total victory. Possible solution: Concessions by the
USW on operating procedures in exchange for a small wage in¬

absence of disapproval) lis,

anfcoTpUeU

Lincoln line; the up-dated

are

1957

year).

up,

Cobleigh

Ira

are

than if or

its

that

made

sales.

car

It's

car

Another

passen¬

ger

better

motor

ratios

These

1959.

quarter

today
unting
over
80%

a CO o

nental with its house-boat luxury;

crease.

assured.

increased. These

have the sleek

starting to taper off. Mills operated last week
at 92.5% of capacity, down 1.5 points. Output was about
2,619,000
net tons of steel for ingots and castings.

own piro<ducts5, so Fo d w 1 P
mably
J51
financing company of its ovm/until
Congressional approval (or at

25 %

Production is

proc-

motor
their

,ni

for

furnaces.

single

ness-^-turning

reported June 22.

Steelmakers

with

They've already taken the initial step of cleaning out raw
material pipelines.
Within a few days, they will start banking

Congressmen
about
manufacturers'
financing

out Fords—

doing

models

getting set for a walkout because union and
management negotiators are still far apart after six weeks at the
bargaining table, "Steel" magazine, - the metalworking weekly,
are

many

be assembled

have been greatly

achievement

June;;;,)'/'-W.y'A'

end '"of

number of different

was,

muttering by cer¬

tain

For

and standardization of parts

esses

great

it is still

•

line.: Automation

decades

the same busi¬

However, the big sheet users are known
holding large stocks. Appliance arid auto plants will have

can

cars

and

coming in at
months

however, some

perspective the
new
elements of efficiency are motor
industry, totally, has a
showing up in the profitability more dynamic look rthan in any
column, with pretax earnings of year since 1955. The demand-(and
17.8% of sales and net income, willingness to buy) holds out the
9.1% of sales in the first quarter possibility of total car, sales in

good. rate.

V .Sheets,; wide-flange beams,arid' bars are, question marks.;i
Cold-rolled sheets are sold out for July, and August orders are

two

Now

line.

mass-

There

tool..

sales

greatly increased efficiency.

became one of

Co.

economy

normal

everything and is regarded as an
effective

power

revolutionized

and

Tubular products, with the exception of large linepipe, appear
headed for a sharp summer letdown.':* One mill estimates half of

to be

of earning

resurgence

corporations of the world example, each particular model
the industrial used to have its own assembly

the great

building
Mills are

shipped.

remarkable

the

arrange¬

ments, with the same organization
that sells him the cars simplifies

currently evident in Ford Motor Company.

before

salute

Motor

Ford

specific jobs.

strong

were

"How to Get Rich Buying Stocks."

Enterprise Economist and Author of

credit

customer's

the

Plates, galvanized sheets, and railroad products seem certain
to remain
strong. On plates, the mills are hopelessly behind on
their delivery promises. They have heavy July commitments and
steel is said to be earmarked for

tying in

business and

profitable

By DR. IRA IT. COBLEIGII

for the various steel
products is about

This

financing.

sales

;

(2845)

Financial Chronicle

Toronto Stock Exchanges

NEW YORK

The Commercial

(2846)

(4)

The Gas Industry
President

Baltimore

Gas

Electric Company

lie

firattwoassumptions"
Evervone accents the fac"^hat iri
tt^Ssence of anuclear
bacte"'
or

and

ket in the next dozen years some $20-$24 billion of stocks and

erev
tug.y.

bonds.

form of inanimate energy?

most

variety of
not need

newer

and

synthetic

confident natural

go on

less

when the future

two-thirds

whose

from the sale of

come

should

acting

company,
revenues

electricity,

spokesman for
the gas indus¬
try. The fact
that

gas

a n

iarly good
sition
the

see

strong

points

the

its

and

times

during its life¬
time, the more pessimistic ob¬
servers have been ready to write

fraternity who

well

"But"

u s

J. Theodore Wolte

t ries.

own
observations,
I
happen to believe that the strong
points of each far outnumber the
my

weak. It is

easily possible for me,
therefore, to represent the gas in¬
dustry at the national level—and,
indeed, to promote the gas busi¬
ness
aggressively at the local level
—without in anv wav ~1irfU 'pg
the electric industry or the elec¬
tric business of my Company. /'//
thumbnail sketch of the his¬

tory and make-up of the gas in¬
dustry

of course, it would be a mistake

period

"flameless" .and

from

with

powered

the consumer's preference for gas.
nearly as * I could determine,

naturai gas fuel cells.

War II to 28%

last

hear

you

I seem

/Among the

gas appliance and equipment manfacturers are spending 10 million
dollars a year and the gas utility
companies at the local level are
spending enough more to give the
The smokeless, odorless ihcin- J1.ldustry a total sales and promo^

to think it should be

erator,. developed successfully to tional effort of 100 million dollars
meet- the requirements of air pol- a year- And I believe the consumlution ordinances and now on the ef f preference, in many respects
Since World War II market, where it is being enthuleast, is being cultivated for gas.
has swept the country,- siastically received;
^

purposes." That is
servation.
natural gas
to

such

extent

correct ob-

that

is :/

there

Automatic water heaters

which

Adequacy of Supply

.....w

utility and pipeline bonds^
very little of the country, left for produce twice as much hot wacer
The fourth important assumpAlways in the past, the gas in¬
it to sweep. Many of the ripe pros^ id an appliance 0f the same size tion underlying our projection of
dustry has been able to laugh
pects who were awaiting the ad- ;and produce it cheaper than can ; continued vigorous/growth was
along with Samuel Clemens, who
vent of natural gas are now reve- be done by any competitive ap- that gas will be available in aderesponded to a premature printing
nue
producing customers. /•/ \. j pliance; //•'■
/ ,-/ quate supply and at .competitive
of his obituary with the comment,
.
.
"L
.
*
A new gas refrigerator, to be on prices. Lets take a look now at
"The
reports of my death are
Will Seek Extensive Expansion
the market next year, which will
the supply of natural gas.
greatly exaggerated." I hope to
It
is
interesting
to
observe/ hold its own with the electric re- / Those who are faithful readers *
persuade anyone who tries,
however, that the preponderance,frigerator on initial price, conven- 0f a.G.A.'s releases know that we
directly or indirectly, to write ql'f
of gas industry growth in the last: fence features
and/performance, have a very important Committee
the gas industry that it is hardly
decade has represented intensive and will offer the customer a defion Gas Reserves which painstakgoing to improve his standing as
development
rather
a
than/ exten- hite saving in operating cost. X; Singly develops authentic informa- •
reporter or as a prophet. It
sive growth
The
absolute
growth
a new gas furnace, still in the/ lioVirom confidential reports on
might help to convince the die-'
in
demand for gas in established research
stage, containing its own the amount OfrecoverableZ/gas *
hards that 300,000 gas lights were
natural gas areas such as,the Ap-.i. thermo-electric gas-fueled
sold in 1958 and 500,000 will prob¬
gener-,/known to be in the ground at any
palachian region and the South- ator of sufficient capacity, to operr *'Lyen time and the amount proably be sold this year.
west has been substantially;
great.-;,;ate: the/controls:/and warm;eair :|uted; each year,8 The Committee'
er
than growth in new markets./blower or circulating water pump./
§20-$24 Billion
advjses that the proven reserves /
.

weak

points of both

hand,, will bake a cake of su-.r

of inanifalrlv well

sources

geographic markets, thus making
possible large volume sales of gas
for industrial and space heating

even now

From

many other new and
important appliance developments
saying, "Much of that tremendous brought about through cooperaincrease came from the extension hve research: and the efforts of
of natural gas pipelines into new individual manufacturers are:
. ■
before World
year

Several

various

?"*
?LS™
ing the postwar

revenues

for gas

po¬

have

product

written;
at least,
I can't get any other
meaning out of their insistence on
stringent sinking fund provisions

pecul¬

its

have tripled.

seem

company

doubled

financial

combination
electric

than

repeat the third assump-

oven,

enerev

the obituary of this great indus¬
try. There are those among the

the

president of

sales

y <r ,
.
P
7
range in which
the ship of „i,ini
national
television, along
«„;n
nrluortioincf nrndram
when not in use, will be/with a print advertising program.
concealed, and when brought into Our sponsorship of Playhouse 90
operating position by the wave of will continue next year.
;
mestic. gas

tenure .to half the usual to give the impression that A.G.A.'s
™te
It Is
time by the aPPhcat,on of radiant -'expenditure .of 6 million dollars a
fnt'Xt • ha/tremen^!v heat above and gentle heat below; ye!/, including 3% million for
increased itf share of the total a range with foldaway top burners playhouse 90,' represents the inenerav supply in this country durw/ch in themselves will be dustry.s entire effort to cultivate

a competitive
industry will be ready if and
synthetic gas becomes feasible.

puzzled that the

Playhouse 90 has gained outstand-

Clearly on the horizon is a do- fii^t time

en-

what
wiictt.

auestion is
quc&nun
is,

...

amone

and incentive price, and that the

Some may be
chief
executive

less/ry from the prewar cookstove^ Institute has umdorfcdtentor tte

animate

own

£% ft8 2?

He is

come.

agree •

and

energy

his

The
J.11C onlv
Uiuy

Let

competitive appliances; and (3)

long, long time to
will be obtainable at both

gas

for

development; (2) provide

commentators

the

more-* inanimate

from its Intensive to extensive

to»ntroI, its•/otisseries and grill, peiilOdicaU) by testing the^trend
Mi low. BTU pilots and improved of consumer l^ferencea among
insulation . which permit auto- vieweis and non-viewers of the
Sat the average American for matic ignition of all the burners program. A less scientific but
othL than reSlational purposes, while keeping the range cool, and
will
continue
to
use
more
and •lts many other features, is a far success is that the Edison Electric

that the gas
industry's future is every bit as great as its past are set forth
by the industry's spokesman, who is head of a utility two-thirds
of whose revenues come from electricity.
Mr. Wolfe avers
predictions of the industry's demise today are no more valid
than those of the past and he explains why gas expects to mar¬
(1)

riological war, we are in-for a
virtual population explosion. And

Facts and assumptions supporting the bullish view

The rapidly growing industry, he says, will:

Thursday, June 25, 1959

The present-day gas range, with ing prestige and it has produced
its automatically controlled oven, for the gas industry a strong sales
its automatic top burner heat impact which'has-been measured

tifving the

Gas Association

American

-—are

';./•;

.Lii

By J. THEODORE WOLFE*
President of the

dividual appliance manufacturers poor
or controversial program
directed to the more whim- over which we, of course, have no
sical demands of the buying pub- control, we have never been sorry.

be available in
and at competi-

will

Gas

adequate supply
tive prices.

Looks Ahead

and Financial Chronicle

mav

bacnurop

„

Financing Ahead

have

mentionedtiihe

already

vigorous growth of the past ten
years.
This was not just a onedecade phenomenon. Our A.G.A,

New markets take time to

develop

to their maximum, and major, ex-,

of demand still lies*ahead

-pension

for

those

which

areas

Gas fired air conditioning units,

either

received

part of the

heating,

natural

year-round/the

cooling

gas

end of

humidityVbubie

and

ifi this/country at/

1958'were 254

feet

andi;ithe

trillidri

production*'

an! add-on; dui.ing 1958 was IT ^ trillion cubic
for our look ahead.
natural gas initially .during
*the;? unit-to be installed in conjunction feet*'
Bureau of Statistics, which I have
•' 'J' r: v
This is a big industry. Measured
last 10 years.
/
,,with a separate heating system.
found to be quite reliable in its
'n
bleaqe do not make the
in terms of total assets, it is now
Of course, one cannot expect a > Because of its great and profit^x,h:„h' onm- have/made
the fifth largest industry in the prognostications, tells us that by
of
the end of 1970 we shall see a rate
growth
in
the ^ future; able potential, gas air
054 bv-?ll%^and conUnited States. To serve their 32
further growth in the number of matching the rate of the past,, 10, is a subject; close to my heart:
million customers, the gas dis¬
cluding
our natural gas supyears.. And if you want to apply During
customers
the
summertime
when
served
by
the
tribution and pipeline companies,
j
t
j
22
s
The
gas
the compound interest tables to electric utility systems are already
utility
industry from last year's
at the end of 1958, had a gross
of 254 trilUon cubic feet by
the projections I have given, you groaning
32 million to
under
the
burden
of
nearly 44 million;
represents our total gas
plant investment of 18 billion,
will find that they do represent a peak loads caused by air condiover the same 12-year
period, the
400 million dollars. In the year
.
It fs only the workingamount of gas sold will go from slackened rate of growth. Our in- tioners,, vast quantities of natural f "W J•
which1 we have "on the
1958 they took in revenues of 4
80 billion to 154 billion
»
I S ih\* uo let me
therms; dustry doubled its sales in the past -gas are available, at low increbillion, 600 million dollars. Yes,
10 years; it may take 12 years to mental costs which can be sold
our revenues will rise from 4 bil¬
1.°.Pihnt in 1945 we had
the gas industry is a big industry.
double
them
again.
However, for cooling purposes without add- re™
nf
than 148
It's a complex industry, too. It lion, 600 million to 10 billion, 700
million
only
the
gloomiest
observer
would
ing
a
single
dollar
to
the
gas
utildollars;
and
the
fPP+
since then we
gross
consists of some 1,300 distributing
investment in distribution trillion cubic f
,
plant
investment of the distribut¬ look on this as an indication that ity's
cubic
companies, many of which are in
our arteries have
begun to harden, facilities/ It is this obvious fact
the electric business as well, and ing and pipeline companies will
With
much
of
the
"heavy that
has led the gas industry
100 or more pipeline companies, increase from 18 billion, 400 mil¬
cream" gone from the top of the through
lion to 49 billion, 300 million dol¬
AGA's cooperative re- ^ad Pr°J</n
some
of which also produce and
®
notwithlars.
Making due allowance for market, it will obviously take search program and through the
distribute
^
volumes
of
gas,
and manufacture
some real effort for the
replacement
of
old
gas indus- individual efforts of manufactur- standing
increa 1 g
plant, this in¬
petrochemicals seven thousand or
crease of
try
to
maintain
a
rate
of
growth
ers
such
as
Arkla-Servel,
Carrier's
production,-we
ha
nearly
31
billion
dollars
more producers, the principal ones
have
inin gross plant investment means that will double sales in 12 years. Bryant Division, The York Divi- Prove"
of
whom
are
+
inventorv
also
in
the
oil
I can assure you that such effort sion of
that the industry will
Borg-Warner, A. O. Smith creased, the amount 0
, y.
probably
business; about six hundred gas
is being exerted.
Part of the ef- and others to invest substantial
on the sneii.
appliance manufacturers, many of spend 34 to 36 billion dollars on
fort
is
new
being devoted to the deveL sums in the development of variconstruction, to be financed,
No one really knows what ^our
whom also make electric and oil
burning appliances; and some four roughly one-third from internal opment of improved equipment- ous types of gas air conditioning total supply of natural gas is. The
control-system

conditioning'Sv£ing

th|t

|Lyure
^umeans
^

™

ic^

Proddced fOg trillion cubic
^ at^ 1^, en«t of 19OT w©

•rl/?pSn?

thousand
distributors
of
liquid
petroleum gas, not a few of whom
are in sharp competition with the
electric segment of the business of

some

our

distributing

com¬

panies. I
must
at

am sure this complexity
give the security analyst fits
They have to live with
as

Notwithstanding its already
buge size and its complexity, the
industry is a rapidly
growing industry. To me this is
American gas

its most remarkable feature. Here
is an industry born in

other

two-thirds
In other

words, the gas utility industry ex¬
pects to market during the 12-year
period
stocks

some

and

bonds.

billion

any statistical pro¬
jection must be based on assump¬
course,

tions.

There

are

four

basic

sumptions underlying our 12
look ahead. They are:

(1) There will be

as¬

year

1816, long
past the age when most industries

United

States;

would

(2) The standard of living in
this country will continue to
rise,
and this will involve a continued

have

turned

downhill

passed out of existence, now en¬
gaged in the most vigorous growth
in its entire history. Just in the
past ten' years, the number of
customers served by this
industry
has increased by nearly
40%, the

(3) Gas will

New

by Mr. Wolfe before the
Society of Security Analysts,
York City, June
10, 1959.

among

the

mate

energy;

the

use

equipment.
The gas air conditioner is a reality today and will
be a mass consumer item tomor-

U. S. Bureau of Mines rather con-

servatively ,estimates

it at l,0Du

trillion cubic feet, or four times
the amount of proven reserves

the end of 1958. Other experts say
really get quite a thrill when improved equipment and new uses it is anywhere from 1,200 to 1,700
I observe how much alive the gas for gas.. I said that another
part of trillion cubic feet. And this is lor,
industry has become to the need the industry's effort to maintain only 48 of the United States, not
for developing
new
and better a healthy rate of growth was be- counting Alaska, where large
appliances.
Historically, the in-, ing devoted to cultivation of the quantities of gas are believed to
dustry has been a price conscious consumer's
preference
for
gas..exist. Nor does it count the vast;
one and, until very recent
years, AGA alone, through its coopera- unproven reserves of Canada and .
gas

...

sell gas and

appliances had been based

their

than hold its

popularity
sources

contest

of inani¬

comparatively low cost. Now

the

buying public is less interested in
price than in such things as clean-

liness, coolness, convenience,

mo-

dernity, automaticity, and so on.
While gas retains, in many areas,
a

v^ious

row.

Newer and Better Appliances

it is generally recognized that

inanimate energy;

address

York

population

increase in the per capita

own

♦An
New

new uses for
gas, another part
cultivating the consumer's preference for gas.
'

most of its efforts to

tremendous

growth

the

and

g0 much for the development of

Assumptions Made
Of

I do.

the

by the sale of securities.

times.

It to love it

and

sources

price

forms

of the

forts

over

other

energy,

most

industry's development ef-

—

AGA's

advantage
inanimate

those

supported

cooperative

through

research

gram and those carried

por-

by in-

tive

program

promotion

and

advertising, is spending

more than
million at the national level,
five times what it was spending

Mexico, which could be made,
available to us if the necessary

economic and political relationships were worked out. Nor the
in 1952.
In addition to magazine tremendous possibilities inherent
print advertising and the various in the shipment by ocean-^goipg
cooperative
promotional
protanker of liquefied natural gas
grams, AGA undertook two years from th<3 Caribbean or the Middle
ago the sponsorship of a national
East$6

television

good

program.

fortune

the

Either
exercise

by
of

great perspicacity, the responsible
committee
chose
Playhouse
90.
Except for those rare occasions
when

receive brickbats for

Without posing as a geological
myself, I firmly believe

expert

there

plenty

natural

gas

industry
going at an ever accelerated pace
until long after you and I and our

available

keep

our

Volume

children
passed

The Commercial and. Financial Chronicle

axiomatic

seems

gas at the present time

that

Initial research

price

' 4;

gas.

natural

4 One may suspect by now that I
am just a bit bullish op the future

"yUj,# the American gas industry. If

Oil shale and

the

so,

suspicion

wander

E. A. Shurtleff V-P

Of Blyth & Co., Inc.

Be Carreau Partner

SAN FRANCISCO, Calif. —
Eugene A. Shurtleff has been ap¬

Gordon Y. Billard on July 1 will
become a partner in Carreau &
.

well founded.

off

Gordon Y. Billard to

into dream-

pointed Vice-President of the in¬

thinking about the possibili-""

ties

the

solar

battery

vestment

the

nuclear

banking firm of Blyth
Inc., Russ Building,* it is

Co.,

announced
muiiey

xo-iue enori.

nus uoes'itoi.r

77,

~—

"" V

a1'

7•

"T"

•.,

and Wlth iar tewer technical prpb- land, as the possibilities of the gas
prices of natural «as from Federal lems than coal. Furthermore, there 'fuel e£lLAnd when we comeback
regulation 4 It does mean that r arc indications that sliale "•—-xven • to;-reality,;r, taking into account
favor a form of regulation whichTthe poorer quality shales of the such : practical
considerations as
recognizes.that the discovery and Midwest and Appalachian areas— customer;^investment,; customer
develoDment of
natural
«as "re- ^can
converted to gaseous fuels-safety, service reliability and
'serves3s:;:riot Sv^SBiijc^€ili€v
liquid? operating %osts; we find that the
itio^andiccaiifmt; successfully be fhfels.^I^^^m?sureth£re iwiU ?be'^ansrftissichi;and "distribution .of
dealt with' as Such but which also .significant • ney/g about, shale - re- gas through a -system of pipes is
recognizes that most of our gas is / search in the not distant future, still -just: about the most efficient
producedby people whose pri-'
Frankly;. I think it , will be a means we have of getting usable
mary/concern has been the pro- long, long time before our supply , energy into the customer's home,
duction of oil • and the distributors of natural gas will nbed to be sup- It is for that basic reason that I
mean

aWnranrp

some

Chairman

that I favor exempting field

plemented by substitute

thnt eas won't

out of Us market

their great, great grandchildren, it
may be comforting to know that,

•V-'Xy''
Supply at

Competitive Price

think the

gases. But

'£.

J'h«n that

pipeline

firm

AJJ

of the New York

much

assume

ithat-

found.

; of

will

this

country we kick
things around and we mess them 4 ?
up pretty badly sometimes, but we
always do what we have to do.

this

have to work

problem- which

mental

concern

the

office

Francisco

from
t°n

partnership in J. R. Willis-

Beane

June 30.

corporate

(Special to The Financial Chronicle)

ATLANTA,
Ga. — Bobby
Lowry is now with Miller Securities

;

Corporation, 11 Pryor
w.;x,v.:-

Stix Adds to Staff f

J. w. Tindall Adds

(Special to The Financial Chronicle)
(Special to The Financial Chronicle)

ST.

Mo. —Howard

LOUIS,

ATLANTA,

Ga.

—

Joseph

V.':?-..

V' tv

•

This announcement is neither

Producers, pipelir.ers and distrib¬
utors of gas are all beginning to
realize that

San

graduated
from
the
of California in 1939.

now with Stix & Co., SrS^Tas^been"'alde^To the
of producing synthetic gases may Mr. Ballard was formerly with 509 Olive Street, members of the staff of j. w. Tindall & Company,
serve
as
an
important factor in Copley & Co.
?
Midwest Stock Exchange.
Fulton National Bank Building;

optimist? to

solution

offer to sell

solicitation of

nor a

offer to

buy these securities.

7The offer is made only by the Prospectus.

New Issue

out

funda-

entire

$39,982,000

gas

industry, Under the leadership of
A.G.A. we have begun this year a

The

series of informal conferences at¬
tended by representatives of all

Municipality of

segments of the gas industry. In
these conferences, we are seeking
to

develop

of each

better understanding
problems. Out of

"A*:

other's

(Province of Ontario,
Canada)
>»'

that understanding may come an
answer to the question of how to

get the gas
tive

need qt

price.

Hi''

;

Debentures

competi¬

,«

Dated June 1, 1959

believe, how¬
ever, that :J recent prices
in new
contracts may represent a level at
which exploratory and develop¬
mental activities

can

time to

be supported

come.

i'l

Date

1960

$484,000
509,000

Approx.

Offering

Yield to

Rate

Price*

Maturity

535,000

1962

564,000

,1963

? 594,000 "

1964

554,000

1965

583,000

1966

614,000

41967

100

4%%

1961

Public

Interest

■■

Maturity

Amount

reason

some

shown below

Principal

■

MCF is heavily
affected by some very iow con¬
tract prices established when gas
was primarily a by-product. There

for

Due June 1,

$6,759,000 Instalment Debentures
■':;

12 to 13 cents per

some

7; 7

to increase from its present level,
since the present average price of

\.i»'

•v

ready to con¬
cede right now that the average
field price of natural gas is bound
course,

...

199,000

1972

5.00

210,000

1973

5.00

220,000

,5\:.;..

100

5 'V::'

100

New tech¬

5.07%

5.00

•y

99.50

1971

100

•:

Maturity

190,000

5.00

Yield to

Price*

"45

100
"

Offering

1970

5%
5-'

1974

■

-,v

''-7

Approx.

180,000

4.875

Rate

1968

100

Interest

1969

4.625

Public

-■ ■

,■

Maturity
Date

,678,000

4.375

100

Principal
.Amount,

$645,000

4.125%

100

-4%
4%
4%

■.
,

V 99.50

5.06

99.25

5.09

99.25

5.09

5.10

(*Plus accrued interest from June 1, 1959)

niques and new materials used in
exploring for and producing gas
are helping to offset the otherwise

rising trend of costs as wells go
deeper or farther offshore. It is
worth noting, too, that many of
the

factors

same

make

which

tend

prices rise affect the
prices of competing energy sources
well.

It would be foolish of
a

precise prediction; but I

do have

conviction that

the

have
which

gas

will

projection.

need

sustain

Public
-

to make

$33,223,000 Sinking Fund Debentures

gas

Interest

Offering

Date

Rate

Price*

Approximate
Yield to
;

Maturity

$32,741,000

1979

5% "

98.45

5.125%

142,000

1984

5 :.v

97.56

5.175

340,000

1989

97.35

5.175

j';;;

•

(*Plus accrued interest from June 1, 1959)

;

Synthetic Gas

One should

Copies of the Prospectus

not conclude

dis¬

the long range future
industry witnu^c ocvi.-ig
something about the possibility of

cussion

Maturity

Amount

shall

prices

Principal

growth

our

dealers

;•

are

as may

obtainable from only such of the undersigned and other
lawfully offer these securities in this State.

of the gas

Harriman

developing synthetic gases to sup¬
plement our supply of natural gas.
I

hesitate

casting doubts
ojf natural gas.

do
on

for

fear

the availability
may know,

Some

however, that' the gas industry,
through its cooperative research

is working on substitute
primarily at the Institute of
Technology. While this is a

program,

The Dominion Securities Corporation

Ripley & Go.

Incorporated

The First Boston Corporation

Smith, Barney & Co.
A. E. Ames & Co.
Incorporated

Blyth & Co., Inc.

McLeod, Young, Weir, Incorporated

Wood, Gundy & Co., Inc.
-

Lehman Brothers

Salomon Bros. & Hutzler

White, Weld & Co.

gases,

Gas

long, long term project, indicating

tfiat

really do look ahead, sig¬

nificant progress
It

has

already

has been made.
been

Mills, Spence & Co. Inc.

Bell, Gouinlock & Company

Nesbitt, Thomson and Company, Inc.

Incorporated

Burns Bros. &

Harris & Partners,

Denton, Inc.

Inc.

Greenshields & Co (N. Y.) Inc

demon¬

strated that synthetic gas can be
made from coal.
Major progress

W. C. Pitfield & Co., Inc.

ha£ been made on both the methanation
and
the
hydrogenation

June 24, 1959.

processes.

They have been devel-

With Miller Sees.

Stock

fvoSBut ^don^nfoSbafto Meanwhile, the known-possibility Sudler & Co„ 818 Seventeenth St. Eichhorn is
be?too

Billard

Exchange. Mr. Billard will retire

with Amos

;

...

World t War' II he served
S. Navy in the Pacific
Theater. After the war, he re¬
joined Blyth in the sales depart¬
ment and in 1955 became a sales
the

Co., ,63 Wall St., New York City,
members

lard and William W. Snyder have

affiliated

Blyth,

Board.

representative in the
buying department.
Gordon

tsneciai to the financial chronicle)
DENVER, Colo.—John L. Bal-

systems, become

the

University
in

Charles
the

? During

future

since

great as its past.:

Sudler Adds 1 WO

the/as ia"

existing, major

NOW. I have no pat solution to
c,om,fthis questioji of how to regulate^ expects to; be ready with
field prices so that producers will full scale production plants,
liave; the economic incentive to doubtless located on or near the

/find and deliver the gas we need

„:

industry has

gas

those who like to worry about every bit

by
of

Mr. Shurtleff has been with the

need

(2847)

controlling the

;

get

pricefii'^O'
;To

grandchildren have oped to the point where producThe only questions tion
is known to be feasible,
it, and at what. j although the cost would be some*2'?,v•V'4 •' Iwhat higher than that of natural,

and

away.

how

are,

5858

Number

188

Dawson, Hannaford Inc.
,

■

Equisec Canada Inc.

Midland Canadian Corporation

The Commercial and Financial Chronicle

(2848)

American
ards

Also

Dealer-Broker Investment

Hospital Supply Corporation—Analysis—Hill Rich¬
Co., 621 South Spring Street, Los Angeles 14, Calif.
is an analysis of Arizona Public
Service

American

77:"

7 '''7 7/-/;.77 • 7r ' -A
Company — Report — Thomson

Tobacco

.-••••7'
& Mc-

EVENTS

Rubber

Armstrong

tt is understood that the firms mentioned will be pleased
to send interested parties the following literature:

Co.—Memorandum—R.

Pressprich

Hathaway Inc.

Memorandum

—

Pitman

—

pany,

31 Milk Street, Boston 9, Mass.

ing, Wianno Club.

Castle

Clute

issue

Securities

Stocks—1958

Study of changes in postwar

—

"Nomura's

Investors

available is

Expenditures

Japan
a

—

Commerce

years—

Also

market

able is

over

Owens

Central

Cement

Salem

Electric

Va.)
School

Basis Club

Brosius

Haupt

Co.,

Also available is

Ill

Aug. 19-20, 1959

Iowa Investment Bankers Field

Sept. 17-18,1959 (Cincinnati, Ohio)

Broad¬

Municipal Bond Dealers Group
of Cincinnati annual outing —

review of Curtiss

cocktail and dinner party

Thurs¬
City Club; field
day, Friday, Kenwood Country

International

Inc.—Analysis—Mellott, Pitney, Rowan & Co.,

Club.

—
Memorandum
Howard, Weil, Labouisse,
Co., 222 Carondelet Street, New Orleans 12, La.
—

Sept. 23-25, 1959 (Milwaukee,

Wis.)

Data—Walter C. Gorey Co., Russ Building,

Corp.—Brochure—Troster,

4, Calif.
Union—Analysis—Gerstley Sunstein & Co., 121 South
Broad Street, Philadelphia 7, Pa.
F. W. Woolworth
Company—Analysis—Laird, Bisssell & Meeds,
120 Broadway, New York 5, N. Y.

Co., 74 Trinity Place, New York 6, N. Y.
Allied Mills, Inc.—Analysis—Peter P. McDermott

Singer

Canada)
Association

Co., 42

Wyandotte Chemicals Corp.—Memorandum—Baker, Simonds &
Co., Buhl Building, Detroit 26, Mich.
Youngstown Steel Door Company—Analysis—Hallowell, Sulz¬

American Brake Shoe
40 Wall

Co.—Memorandum—J. A. Hogle & Co.,
Street, New York 5, N. Y. Also available is a mem¬

orandum

Union Bag

American Capitol Insurance of Houston,
and

berger, Jenks, Kirkland & Co., Philadelphia National Bank
Building, Philadelphia 7, Pa.
; "v
7

Tex.—Analysis—Kay

39th

For

financial institutions only-

Lifton Securities Inc.

ing in

offices

The

375 Park

Avenue, New
Officers are Robert

City.
Lifton, President and Treas¬
urer, and Loretta Lifton, Secre¬
tary.

Express International Corp.

largest forwarder, clearance broker

and

con-

Ohio

Group of Investment

Bankers Association annual fall

meeting.
Nov.

2-5

John J.

agents throughout the world.

489

business from

Fifth

Paine,
Webber,
Jackson
&
Curtis, 626 South Spring, Street.
He was-formerly with Walston &
Co., Inc:

Brochures

James

(Special to tun Financial Chronicle)
/*

SPRINGFIELD, Mass.

Troster, Singer & Co.
Members New York

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2100

Teletype NY 376; 377; 373

—

conducting

Albin

Chibidakis

25th

OMAHA,

Neb.—Joseph

terno has been added

the

firm

of Albin J. Radawiec & Co.

Wachob

Bender

Pa-

advisory

ant,
Most

....

•CLEVELAND,

Ohio—Mrs.

42.

recent

and

consult¬
research.

Work-in steel fabrication

building

materials.

Age.

$12 to $15,000.

request.

Commercial and Financial Chronicle

Su¬

Webber, Jackson &
Curtis, Union Commerce Building.

•
field

research capacity. Ex¬

teaching,

Present earnings

Resume

Box

Hansen has been added to the

staff of Paine,

top level industrial

college

rebar,

the

Engineer, Pkfi.
perience:

With Paine Webber

Desires entrance into investment

3624 Farnham Street.

san

meeting

Professional

to the staff

(Special to The Financial Chronicle)

OAKLAND, Calif. — Clyde L.
has joined
the staff of
Grant, Fontaine & Co., 360 21st

Investment

Sheraton Dallas.

Corporation,

(Special to The Financial Chronicle)

Nelson

t>f

Com¬

Joins Grant, Fontaine

Street.

Group
annual

Calif.—
has! joined

Wachob Bender Adds

name

Texas

Montgomery Street.

Newbury

under

FRANCISCO,

rities business from offices at 737

Street

the

April 6-7-8, I960 (Dallas, Tex.)

(Special to TnE Financial Chronicle)

a secu¬

Convention

Annual

Americana Hotel.

Opens

J. Radawiec is

4, 1959 (Bal Harbour,

Fla.)

^(Special to The Financial Chronicle)

SAN

the staff of E. F. Hutton &

A. J. Radawiec

Request.

-Bankers Association of America

Joins E. F. Hutton

pany, 160

Convention

Investment Bankers Association

offices

Avenue,. New York

Security Traders Asso¬

Annual

Nov. 29-Dec.

LOS ANGELES, Calif.—John P.
Burke has been added to the staff

O'Keefe is conducting

securities

City.
.

(Boca Raton, Fla.)

1959

John J. O'Keefe Opens
7

solidator of international
cargo with a network
of 278 offices and

Hotel.

Warwick

»the Boca Raton Club.

(Special to The Financial Ciironiclf)

is engag¬

securities business from

York

t Air

Paine, Webber Adds

the

Oct. 22, 1959 (Cincinnati, Ohio)

ciation

Form Lifton Securities

convention

annual

National

(Philadelphia,

1959

14-17,
Pa.)

Consumers Bankers Association

Co., Inc., 2316 South Main, Houston 2, Tex.

Exchange

ing at the Royal York Hotel.
Oct.

Camp Paper Corp.

Stock

First Board of Governors meet¬

•

Broadway, New York 4, N. Y.

(Toronto,

28-29, 1959

Sept.

Western

Bank

Women 37th annual convention.

Co.—Memorandum—Hemphill, Noyes & Co., 15 Broad
—

Association

National

Street, New York 5, N. Y.
West Coast Life

at Queen

day

San Francisco

Express

Country

—

Overnite

Waionda

the

Club.

Son, 419 West Jefferson Street, Louisville 2, Ky.
Steel Company of Canada Ltd.
Analysis—McLeod, Young,
Weir & Company Limited, 50
King Street, West, Toronto,
Ont., Canada.
Textron, Inc.—Bulletin — Frank C. Masterson & Co., 64 Wall
Street, New York 5, N. Y.
Warner

(Des Moines,

Iowa)

Standard Oil of Kentucky—Memorandum—J. J. B. Hilliard &

—

Club, St.

Clair, Mich.

Broadway, New York 6, N. Y.

Friedrichs &

outing at St.

summer

Clair Inn and Country

Co., Inc.,

5, N. Y.
Also available
Westinghouse Electric Corp.

Banking,

Aug. 14-15, 1959 (Detroit, Mich.)

Gas, Schuster &

Street, New York

7,
of Consumer
-

University of Virginia.

Day

Corporation—Review—Ira

(Charlottesville,

9-21, 1959

Aug.

& Co., 50

Co.—Memorandum—Walston &

Southdown, Inc.

Exempt Bonds—Discussion
Park, Ryan, Inc., 70 Pine
Street, New York 5, N. Y.
in Transportation—Report—A. M. Kidder &
Co., Inc.,
1 Wall Street, New York
5, N. Y. Also available is a bulletin

Air

(Chicago, 111.)

Traders Association
summer
outing at the Woodridge Country Club.
Chicago

the Veno Co.

Illinois

New York 6, N. Y.
Wright.

Trends

way,

list of interesting Electric Power and Light
Companies, and Natural Gas Utility Companies.

ford, Pa.

Corporation—Analysis—Loewi & Co., Incor¬

Fiberglass—Memorandum—Dreylus

memorandum

Wall

Polymer

Street,. West, Toronto, Ont., Canada.
Southwest—Bulletin of economic highlights — First National
Bank in Dalas, Dallas, Tex.
Steel
Situation—Bulletin—Reynolds & Co., 120 Broadway, New
York 5, N. Y. Also vaailable is a report on Continental Oil

Spring Outing at
Country Club, Whit-

June 27, 1959

Co., and S. D. Warren Co.

25 Adelaide

Thatcher Glass Manufacturing Co. and data
Transportation Co. and Gamble-Skogmo Inc.

Corning

memoranda

20-year

memorandum

Permanentc

77"77.
Silver—Analysis of outlook—Draper Dobie and Company Ltd.,

Tax

7 7,.v,;

26, 1959 (Philadelphia, Pa.)

Whitford

Co., 29

Pacific Mercury Electronics—Bulletin—A. C.
Allyn & Co., 122
South LaSalle Street, Chicago 3, 111.
Also available are

4, N. Y.

Company and

N. Y.

Broadway, New York 4, N. Y.

Averages, both
a

Society of Security

v.;

adelphia
&

porated, 225 East Mason Street, Milwaukee 2, Wis.
Also in
the same bulletin is an analysis of Tractor
Supply Co.

Yamaichi Securities

as to
period—
Bureau, Inc., 46 Front Street, New York

performance

York

Analysts, Inc. annual outing at
Westchester Country Club, Rye,

Co., Union

Company—Analysis—Schweickart

:7.

7~-

Building, Cleveland 14, Ohio.

Outboard Marine

Street, New York 5, N. Y.
Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
and

Hewlett, N. Y.

1959 (New York, N. Y.)

June 26,

Wall

National Quotation

bor Club,

Investment Association of Phil¬

Broadway, New York 6, N. Y.
Transistor Corp.—Memorandum—William
Norton &
Co., 9 Maiden Lane, New York 38, N. Y.
Life & Casualty Insurance Company of
Tennessee—Analysis
Clark, Landstreet & Kirkpatrick, Inc., Life & Casualty
Tower, Nashville 3, Tenn.
V
McNeil Machine & Engineering
Co.—Memorandum—Kidder,
Peabody & Co., 17 Wall Street, New York 5, N. Y. Also avail¬

Opportunity for World Progress—Study of effect of population
growth and universal sufferage spread—W. E. Hution & Co.,

yield

;/■'

(New York, N, Y.)

26, 1959

New

Industro

New York.

used in the National Quotation Bureau

Reid

Coun-

Municipal Bond Women's Club
annual outing at Seawane Har-

Standard Accident Insurance Com¬

Club

Bond

try-Clubr777 7:7/-_7 7'7.7

Co.; Denver Club

Corp.—Memorandum—Fulton

General Controls

Company of New York, Inc., Ill Broadway, New York 7,

bulletin

'.7

June

1959 and
brief analyses of
Flour Mills Co., Iwaki
of the Steel Industry.

Japanese Stocks—Current Information

Murphy &
7

Producing

routing at the Columbus
June

Pa.

Erie Resistor

for

survey

Wall

Freightways, Inc.—Analysis—Woodcock, Hess,
Moyer & Co., Inc., 123 South Broad Street, Philadelphia 9,

Mitsubishi Heavy Industries, Nippon

Cement Co. and

Stock

Columbus

pany.

review of the outlook for Plant and Equipment

Gas

Co., Inc.,

Ohio)

June 26, 1959 (Columbus,
.

Consolidated

Beacon"—Nomura

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

available is

States

summer

/Country Club, Essex* Ont., Can.

Company—Analysis—Blair &
Incorporated, 20 Broad Street, New York 5, N. Y. Also

Co.

■

Corp.—Report—Lowell,

Coastal

earnings comparison
—Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
Food Processing Industry—Bulletin—Bache & Co., 36
Wall
Street, New York 5, N. Y.
Gifts of Stock to Children—Brochure summarizing the many
ways of making gifts of securities to children — Parker
Corporation, 200 Berkeley Street, Boston 16, Mass.
Investment Decisions Today—Brochure—Hornblower & Weeks,
40 Wall Street, New York 5, N. Y.
Japanese Economy—Survey of current trends—Daiwa Securi¬
ties Co., Ltd., 8, 2-Chome Otemachi, Chiyoda-Ku, Tokyo,

current

Cooke, .Inc.—Analysis—Blyth

7 Building, Denver 2, Colo.

Department, Ottawa, Ont., Canada—25c per copy, $3.00 per

Street, New York 5, N. Y.

able in current Foreign Letter.
Canada — Statistical summary — Bank of Canada, Research

Japan;
Japanese Stock Market

„

Club

.-.Bond

Green, Ellis & :

—

/ Bullock's

'777-!; 7'7777-\777, ;7":'. 7777• 7.7

Co..— Memorandum

Anderson, 61 Broadway, New York 6', N. Y.
Inc.—Analysis—Bateman, Eichler & Co., 453 South '
Spring Street, Los Angeles 13, Calif.

Corporation, 120
Broadway,. New York 5, N. Y.
7
Burnham View — Monthly Investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y.
Also avail¬
:

year, J 7.7 777
; 7,/7
Fire & Casualty Insurance

Gas

(Detroit, Mich.)
of Detroit annual
outing .at/the Essex

June 26, 1959

Ilills

Brooklyn Union

States Sectional meet¬

Atlantic

Co.,

Building, San Antonio 5, Tex.
Power & Light Company—Report—A. G. Becker
& Co. Incorporated, 60 Broadway, New York 4. N. Y.

Bond Market—Bulletin—New York Hanseatie

Consumers Bankers Association

Milam
Black

Stocks—Analysis with particular reference to Bank of
America, Irving Trust Company, National Shawmut Bank
and Seattle First National Bank—du Pont, Homsey & Com¬

Bank

Mass.)

June 25-27, 1959 (Hyannls,

Co., 48 Wall Street, New York 5, N. Y.
Berkshire

Field

Investment

Kinnon, 2 Broadway, New York 4, N. Y. Also available is
a discussion of bond yields.
American
Viscose
Corp.—Memorandum—J. R. Williston &
Beane, 115 Broadway, New York 6, N. Y.

Recommendations & Literature

Thursday, June 25, 1959

COMING

Available

Company.-1

J-625

Park Place,

■

New Y'ork 7,

N. Y.

Volume

Number 5858

189

The Commercial and Financial Chronicle

By ARTHUR R.
Frederic

in the retained profits of corporations or what we call "corporate

automatic economic snubbers and

period was filled with "over-full
employment." The evidence of the
over-full employment is the sharp
rise in prices and in wages which
occurred from 1946 through 1948.

savings.

job was done by 1946!
In fact, the immediate postwar

postwar recessionary

our

lion since the end of the war,
well over half of this increase

American

shown

teen

has

surprising

re-

and bounce

the four-

need to replenish liqui¬

Second

r't

cessions.

re¬

These

•"Shoffar

these

•

tics reveal the
dramatic

Upgren

and

character

bust"

"no

Arthur

per¬

formance

for

forecasting

the

uunun

Recession—Started

fourth

service

public

quarter 1949. GNP de¬
V/z%. Duration twelve
months. Total declined in total

Followed by

about

1950.

This

recovery

recovery,

But the liquida¬
busi-

rise as we
now,
having
liquidated
inventories, so
substantially, had again to produce all the goods we were conto

suming. The production rate rose
sharply. This caused re-employment and

re-employment has in¬

creased personal

income by $17.5
point in the

billion since the low

that

the
The

"Markets

After

lished

Commerce

and

the

"The Albert Lea

all took place before
outbreak of the Korean

conflict

high

Duration

bottom

Decline of 2^%
of decline,

month.

nine

billion. Low point reached
quarter 1954.

also $9

$44 billion in¬
crease in GNP by fourth quarter of 1955. The recovery in 21

Followed-by

times

'/months was five

took

which

decline

place

the

previous
nine
months.
Much bounce—little bust.

the

Recession—Shortest du¬
six months from

1957-59'

of all,

to low. -Total decline $18
Amount of decline 4%.

high

in the

just

$40 billion re¬

twelve months to
first quarter of 1959. Recovin.

covery^
'

was
more
than
twice
...
„
-r
amount of .decline. Recovery
ery

...

continuing.

the

increased

»1

Clearly
"much

mam

What Most

Economists Overlook

the record

boom

—

resiliency in the

was

years

the

corporate

were

decline

this announcement is neither an offer to sell nor a
The offer is

boom

which

Now

of farm commodities.
how total produc¬

see

solicitation of an offer to buy these securities,:

made only by the Prospectus.

gave

postwar

the

were:

by corporations.

$40,000,000

Philip Morris Incorporated
AV%%

Sinking Fund Debentures
Due

demand

starved

June 1, 1979.

which

measured by Professor Sum¬
Slichter

midway

ner

war

and which had then

the support

worst

Moines.
forces

by individuals and $75 billion of
this increase in liquid assets was

the

by only $3.5 billion.
to this the decline in tion has increased by $40 billion
personal income faxes result- in the twelve months endmg last
ing from the moderate decline in March, and to this will probably
personal incomes and the modest pe added an $abilhon increase
reduction in family savings, we in the present quarter,

see why consumption was so very
Certainly we can say that there
well maintained right through the has been "much boom—no bust"
thus maintained, recession. In fact, consumption in the American economy since
corporate profits declined by only $2.1 billion and the end of the Second World War.

line

Minnesota

(2)
A war-time increase in
liquid assets of $225 billion, $150
billion of which was accumulated

(3)

recession

developed

in the
reached

total of $56 billion.

)

In ;the postwar period, total
^efense expenditures did not deciine
by $100 billion, but did
•

Price 99% and

Accrued Interest

billion or' twothirds of the amount contained in
our 7 hypothetical: question.
This
meant that the Secretary of Defense did reduce 71expenditures
by
Ll
decline by $68

<f»/?0

1>.! 11:

$68 billion. Why
a

*«r/i

recession?

Consumers

Can

Because women

Spend Too

in the

was

be obtained in any State only
several Underwriters, including the under¬
lawfully offer these securities in such State.

Copies of the Prospectus may

from such of the

H nt

did we not have

signed,

as may

of America had

capability for spending fully
comparable to that of the Secre¬
tary of Defense. Family expendi¬
tures,
out of increased income
and accumulated liquid assets, in¬

mightily.
There was a
rush
to
lift family expenditure
rates
and
to
end
the vacuum
starved demand which had been

Glore, Forgan & Co.

Lehman Brothers

Kuhn, Loeb & Co.

The First Boston Corporation

creased

business
expenditures for new plant and
equipment .and inventories now
needed to supply the rising fam¬

once

$36

billion,

due to three
simple forces, operating intensely,
but overlooked by about 90% of
ily expenditures were increased
shipments
'the
economists in the United t>y $20; billion, our
$7 billion
States in 1945 and by all of the - abroad
increased
by
and state and local expenditures
postwar

em-

Community Post¬

is one of
bust." The rioted. Family expenditures rose

economy

entire econfrom a level of
GNP of $210; billion at the end
of the Second World War to $467
bftlion
in rfche% first - quarter of
1959, "the bounce," in the econ¬
omy iivthe 14 postwar years, has
been from ai* index of 100 to an
index of 233-at the present time.
In this bounce, the "price puffery"
when
rubbed out reduces
this
boom in the economy by about
one-third to not more than onehalf. The- declines have been as
small
ripples on this economic
swell.
/
- '
Inasmuch

decline

(1) A war-time doubling of in¬
comes
generally
permitting
a
100% increase in family expeditures for consumption.

was

increased

manual

another

the

Des

three

economy

billion.

Followed by

much

The

nearby city of Albert Lea

The

billion. The
expenditures by gov¬
ernment have been primarily of
state and local governments and
of the Federal
Government; for

have increased by $9

is wages, and total wage

payments

pub¬

Department

which

across

north

Amount

GNP.

ration

Plan"

war

War"

the

expense

bulletin

famous

the

recovery

from

compensation

profits was due to expenses continuing in the recession above the
depressed vote of corporation production and sales. The primary

in the econ¬
simple
indeed and
capable of measurement and were

the

—

total

words

were

omy

1953-54 Recession

tenance of wages, an increase of
$3 billion was paid to the unem-

billion largely represents ployed workers in the form of
the maintenance of wages above, increased
unemployment
cornsales
receipts
by
corporations, pensation. Now we see why perThis is verified in the observation sonal income in the United States

fast as they moved across

measured

times

profits

The decline in corporate

The members of

was

decline.

the

amount

last year.

tion of inventories and our
fiess

of $12.5

The forces built up

$21 billion re¬

and one-third

two

is found in the fact

have built automatic eco-

profits.

Germany in the final days of the

in. the first six months

covery

omy

answer

comes

reduction of more than $11
billion of investment in invenrecovered to about 10% above the tories could no longer continue. In
pre-depression level. The Federal the final half of last year, conbudget receipts, as a result of the sumption
and • production had

ury

armed foices dispatched General^Hershe^ and diis""argument ployees
declined by only $6.5 bil- declined
tion in the recession. In other Adding

output $9 billion.

in both Federal Treasbudget receipts and in corporate profits. Corporate profits have

recovery

those

~works~ reserve" effect better to sustain the econBut these are not the only stab- tories has risen by. $12 billion,
In fact, °my, and it was; offset; by. that ilizers we : have - built > into our housin|
expenditures
creased by
$4.5 billion,have
and ;inthe
amount of decline in corporate economy. In addition to the mam- expenditures
"
1 government
of all

war.

sharp

can

year,

in order that un¬

slowly

^ease unduly.

clined

first

the

Total output, GNP, declined iiies by their maintained confW-S billion.. Of this .decline of gumption ablei, to> produce^the
$18.5 billion, .: without : getting ^™atae :$40< billion recoveiy^m

employment totals would not in-

quarter 1948. Low point reached

Explains "Why No Bust"

that

Major General Lewis Hershey at
one time suggested that the mem¬
bers of the armed, forces might
have
to
be
released
from the

economy:

*fc

been.

lies in

supply consumption
but-the production of
inventories ; produced
in¬

course,

this

'/would be vitally needed.

statis¬

1949

"no bust"?

evidence

that in the

consumption was "fed"
Inventories, of

out of inventories.

'non-

recessions.-

the

The

Government stops

States

morbidity sta¬
tistics

The

Eastman Dillon, Union
Harriman
>

Securities

Ripley & Co.

Incorporated

Smith, Barney & Co.

Goldman, Sachs

Co.

Lazard Freres & Co.

Kidder, Peabody &. Co.

Carl M. Loeb, Rhoades &

Co.

...

Merrill Lynch, Pierce,
>

Fenner & Smith

Incorporated

Stone & Webster Securities

Corporation

—

talk

m e r

the

Here

the

are

monetary, volume,
-' • v
Boom, then, -there had

period.

o,uu

have

three

SWer lies in the fact

recession

corporate retained profits.

meaning the in¬

production and expendimeasured
in physical,
not

vCfll
xw,
spending $100 billion a year
for
war?" The official economists of
the : Administration of that time

e e n

years, we

had

United

these

was

how

jn face 0f a much more marked
reduction in production? The an-

$12

level

have gained by about
billion. Thus did the losses in
nomic
snubbers
and
stabilizers incomes, to corporations and the
The popular question at that
into the economy. Here is how Treasury,
finance * better main; Uipe was: "What will happen to they operated in the recent 1957- tained incomes of the families of
the
American
economy
when
58 recession:
America and thus were those famthe postwar

World War in

Europe."

"real terms,"

ture

and production.

economic

official

end;

the

worth the contribution we have
seen in the deficit of the Federal
and Treasury and in the "shrink" in

creased

official advisers to President Truman. These advisers' forecast has
become their "Great Mistake" of

y ears

since
the

most

the-

silience

e c o n o m

consumption during

dated inventories which generates consumption

incomes

prices has increased by more than $250 billion since
the end of the war. Dr. Upgren credits our automatic economic

The

wage

seen

now

by $18 billion. How could conSUmption be so well maintained

c?mes7?efthe mamtainence
of

have

stabilizers maintain consumption.,
However, production did decline

output) in current prices had
increased by more than $250 bil-

in current

■

much

Total

recessions and attributes recovery to

,Thus did a loss in
receipts of the Federal
finance
maintained
in-

budget
budget

only 6/10ths
consumption.

was

total

S? vf boom
then^ we see
what
I call billion above the decline in total
the
econorny. production of $18 billion was well

explained by former Dartmouth and now Macalester College
economic research professor. He points out that total output

situbbers and stabilizers for maintaining

„

Minn.

declines
has been, more than offset by recovery gains, so that the
"declines have been as small ripples on this economic swell/'

The fact that the extent of

the

of Economics

Paul,

St.

College,

this

UPGREN*

Bigelow, Professor

Macalester

billion which offset all but of $12.5 billion was shared one$2 billion of the $68 billion de- half by the United States Treascline in expenditures for war and ury and one-half by the decline
$66

Why Much Boom—No Bust

(2849)

i civ

Dr.

I.W.en

Petroleum

before

Institute,

MoToes iowa. May 27, 1959.

again could increase and
Des -did increase by $3 billion. It Was
this total expenditure increase by
the

now

Wertheim & Co.
June 25, 1959.

White, Weld & Co.

Dean Witter & Co.

The Commercial and Financial Chronicle

(2850;

markets continue to of Japanese portable radio sets in
evidenced by the recent the American market has more
introduction of stereophonic-than tripled in thelast two years,
sound.
J: sr
■/>:;"C.v, v-.-v-

rise and

The World Outlook for Electronics
By H. H. SCUDDER*

open,

There is
of

New York City

market outlook for electronic products depicts
sion with U. S. A.

obtaining

definite

electronics

than

Does Not Favor.Protectionism

defense.

all

expan¬

the

percentage

coun-

mount from present 3 to 4% to 7% by 1975,

increase is expected also in Europe. Or, the volume of business

expected to reach 75%. The out-

and

look Is for increased product/de-.

industrial

paralleled

years

seen

borne

not only in the airand
ground systemsbut

also in

new

fields such

world outlook is
dominated by the Cold War.
To
win this war we must persuade
of life is a
offeied
by

way

that

our

better one than
the other side.

American business

fe WSJ-*!^

assist

can

ma¬

terially

in this by expansion of
trade, investment in for¬
eign countries,; and the establish¬
overseas

Tpreign countires

a"d1f

present

the uncommitted nations that

Wealthy competition from abroad

under-

The

industffes. from what^ might be a

velopment

whole

Africa.

£xtra «°seLof Protectionism would
be f°od M ^ ^omy. This

Eagle program, this percentage is

going up
four-fold. The industrialist hopes we will not turn protectionist
in the face of foreign competition and he suggests how chang¬
ing international factor can be mutually beneficial for all.
spending in next 15

America, in spite of finan¬
difficulties, expansion is on
continuing and this is
true in the Far East, the British
Commonwealth
and
parts
of

electronics

Latin

ther increase in international com- cial
petition, and- this-fact has to be the

realm

the

most other European countries. In

;

We can look forward to a fUr-

importantuse ;

and

industry and in France the
of recession seems to be
fading out. ; Signs point to a sus¬
tained activity in Germany and
danger

defense faced. How should we best meet
spending going to electronics is this competition? Should we react
increasing. In the United States, negatively by a retreat into furfor such programs as the Jupiter ther protectionism or positively, by
and. Thor Missiles, electronics,rep- cutting costs and, by .-working,with
resent between 55% arid
60%2;of i jpreign associates. I/do not bethe total cost. In the new NaVy lievfe,:generally speaking, that an
tries

goodly share from exports or

foreign investments. In the United States the share of
in all capital expenditures alone is expected to

from

national

Mr. Scudder's brief review of the factors underlying the world

Defense f

Thursday, June 25, 1959

tion to

new

National

President, International Standard Electric Corp.
An Associate of International Telephone and Telegraph Corp.

All of these

ment of factories.

ac¬

operating equipment. As an pf the possibility of earning dol- tivities will tend to bring about
example of the complexity of new, ars' wl*b a .resulting loss of busi- an improvement in living standi
The term "electronics" is very are
entering an era where the
At ITT we are planning to
much in the public mind today disparity of living standards will equipment, one can cite the instru- ness ppporturtities-''for American ards.
mentation for the new F-108 In- exporters.
continue increasing-'* our invest¬
and
is construed to
embrace
a
be more rapidly reduced. •
terceptor,
which
will
provide > There is what I believe to be a ments abroad and", we are con¬
considerably larger field than the
With this background of rising
navigation,
identification,, com- very...heal thy tendency to join sidering the
establishment, of
dictionary
population,
production
and
in¬ munications and landing-aid con- forces with foreign industries in
manufacturing units in additional
definition of
comes
throughout the world, the trol for aircraft travelling at three order to benefit from their lower countries. We see
nothing to pre¬
the
term,
electronic industries appear to be
times the speed of sound. ;.
/
'
cost. I recently read that a new vent a continually increasing mar¬
which is "That
well placed to benefit because of
Technological developirient cori- i*adiq .set produced by a
e ket with a goodly share in the
branch
of
the widely diversified nature of
tinues to create opportunities Jn American corporation will include electronic industry being obtained
physics which
their products. Whether the main
all fields. This development is ex- Japanese components This use of by American interests either
treats of the
emphasis is on defense or welfare,
through sales " from the United
pected to continue at perhaps eyen f°reiSn"*hased production has been
emission, be¬
on
consumption
or
investment,
States or from /units established
a more rapid rate than in the past:
^^iliar>to . us for many years.. in
havior, and
there is bound to be at least one
foreign countries. /
^V
We all know how transistors and There" are advantages to the proceffects of elecarea of growth and usually more,
the new solid
state components ess ^insofar; as the use of foreign
trons, espe¬
in which the electronics
water

industry

cially

vac-

tubes,
photoelectric
cells, and the

Consider,

Our

pany's b
ness

was

telephone.

Our

company was

only

werp

invention

si/
originally
first

strictly

associated

established in Ant¬

two
of

after

the

telephone

years

the

Bell. In recent years, our business
has grown to include many lines

which

are

from

though

far

removed

telecommunications,
telecommunications

represents
our

perhaps

large

for

basic

al¬

before obtaining anything like

the

telephone

this

country.

proportion

man
new

from

brain

transistors

of
1.3

epoch-rnaking-]^de- 90rriP°nej}ts. ~~ by lowering
giving
.p, ^slu° Tp ^11\lsbpd product-

million

match

have

units

units in

1954

Without

1958.

the

world.

Great

Britain, for example, there are
of still
160,000 would-be subscribers
the

moJfthan
than douEiert
doubled
more

the fifth largest in the courttry. New possibilities are opened

now

waiting list. Not only must
World-wide prospects for the
new
equipment be installed but
electronic industry are generally
possible to receive radar
equipment installed 30 or 40 years from far distant
on

and

size

Robert L. McCaffrey has joined
otherwise would, not exist,
Next tot competition, another the investment fifm' of Harriman
great forqe shaping, the develop- Ripley & Co.,/* Incorporated, 63
nient of foreign business is the Wall Street, New York City,- as a
I
' j
;government policies, V Ibe-Jt' re sv?-;/-'

^Ye *.ind

and natural de-

£?L£i*\5n+™es

? abl]f^ ad f^

estimated that the population will
rise from the present 174 million

tion of this trend is the recent

to 235 million by 1975. In Asia and

post

lished

an¬

nouncement of the first automatic

office

the

United

This

one.

the United

such

States

can

seen

®xba^

resources.

-This is
plnf

•-^conditions
throushout

the

person

after taxes is expected to
between 1957 and

1975. In other regions of the world

can

*An

safely be assumed that

address

kind

made

change rapidlv
world ahd one

Mr.

Scudder

There

Heyr York City.

will

be,

that

electronics.

in all likelihood,

throughout the world

demand

before

the National Industrial Conference
Board,

for

ik-

missies. andf^dSta^

in other

entertainment

standards
are

home

continuing

c.e

Company ;bf:
New

o r

k;"

wher e"he
s

p e n

•

t't he
Rooert L.

greater part

McCaffrey

of hi* b1,cin«vqs
career.

He served in various

exec¬

utive

capacities at Mutual Life,
including such posts as Director
of Accountiiig and/Stafistics, Per¬
sonnel

Director

and assistant

Lewis,W./Douglas; then President
.of ;MutuaI/-~;'

WiUuWaDs.tAssoc.

(Special, to The-Financia^ Chronicle)

ATLANTA,
Harris is

now

Ga.

—xGetha

affiliated with Walls

Associates, Inc., Candler Building.

Two With Coburn
(Special to The Financial Chronicle)

BOSTON, Mass.—Pearl R. Jackman/

and/;■

Thomas

Elizabeth,,^A.

have

become; assdeiated'with, Coburn
&.< Middlebrook,
Incorpo¬
rated, 75 Federal; Street.
Both
were formerly with A: L. Albee
& co.

R. W:

?ithlr

•

Pressprich Addis

(Special to ThE Einancial Chronicle)

■

BOSTON^ Mass.—John B. Butripw/Wiih R. W; Pressprich
Federai Street:" He was
formerly .with Schirrrier, Atherton

industrial

growing pean currencies.

trick is

competitive positions. In

rarily

As this contin-

legst

some

tempo-

Europe

will

offer,

possibilities.
I - have recently returned .from

markets. A typical example

?uro?e and,: generally speaking, I

sale

& Co.

-•

:•

Join J. C. Flax

*
-

(Special to The Financial Chroniclb)

SPRINGFIELD, Mass. — Kermit
Bleicher and John F. Bantis .have

joined the staff of J. ClaytonrFlax
&
Co.,
1562 Main Street.; Mr
BIeicherwasfpreViouslyt with J ay
C. Robertsi&c Co.

ourselves
_

of Japanese

.-fJr. found;a much, better outlook.than

portable several months,

to radios in this country. The share

ago.

The

new

Joins; Harris, .U pham

out; of

priced
,

the

have

ubs, foreign- exchange shortages

& Co., 75

will be.reduced and financial mar-

....

recording devices. Even in world

country

countries put

number of overseas manufacturers

this

n s u r an

Spst

growing items,

radio, television and

Life

Mutual

home
by

entertainment

possible

McCaf-'-

Mr.

frey was for- ;
merly with

prepared to move rapidly
to/ meet These changing circumstances.*: For exajpnple,: in Vietnam

processing equipment, where pronow
ten vears
oroducbeing installed by ITT in
higher. In Europe, with Providence, Rhode Island. Auto¬
matic
handling of checks has been
o lower total increase in
+
equipment are. couhtries increased by about 95%.
popula¬
a subject of
acquire electronic jt is expected that in the next 15
study by the Ameri¬ skillss^riv^nS
tion, there are still important re¬
and
knowledge. • But .the-:
can Bankers Association for some
ye^rs it will double. This will
ceives of manpower to sustain the
most important factors tending, to result in" increased' buying power
time and several installations of
remarkable
rates
of
industrial
increase
world-wide competition •
and exparisibn. of' markets which
this
nature
have
already been
growth which hase recently oc¬
are to be found abroad. The cost
in our opfnion will mofe than offof
curred. All these potential pro¬ made or are in the process
and price advantages long.erijoyed
being installed.
aby losses which may be
ducers and customers will have
The growth
in consumer in¬ by the United States are rapidly
greater incomes. In the United comes will also tend to
strengthen
diminishing as technical advances ^mentis the ^convertibility of Euro-;
States the average
the world-wide demand for the
income

rise about 40%

>
'' *,

deritr>

even

per

Latin America the rise is expected
to be

P'resi-

loway,
<"

orhi6s
based'on raw "materials and
atrrioultiiral -production

States, particularly in-

fields

a; n-

Stuart F,,Sil-

„

has;'"'.
1

nouneed

desire to fight

planets and.it is
a vast
ago must be replaced. New devel¬ now
possible to look forwardtq after the end of the. Indo-<China
foreign
opments such as the submerged new solutions to the
problems .of war, it; was almost impossible to
competition, government policies
repeater telephone cables which
end other economic, financial and
inexpensive world-wide commu/sell equipment produced in France,
now span the Atlantic arid part of
nications by using a
political developments on the in¬
system of; Now the situation is almost cornthe Pacific will become a major
three satellites in orbit around the
ternational
scene—running from means of communication.
pletely reversed, and Vietnam "is
common markets to the Cold War.
equator. These are not remote a good outlet for French products,
In spite of these conflicting fac¬
dreamsbub
actual proven possi- K:%}:t\
• 'r
- - 1 '•*
/ Industrial and Office ^Electronics
bilities. The varieties of applicators, the w orld market outlook for
ECM and Convertibility
Impressive as the business .out¬
electronic
tions that are opening up in all
products is definitely look
J" Two other important developfor telecommunications may
fields are innumerable, /t
expansionist. Our basic reasons
r ^/ / // ments which influence the busibe, the growth prospects in fields
for this attitude are both economic
>
■'
ne^sl outlook ate the European
such as industrial and office elec¬
end
technological. First of all,
V.; Factors Affecting Business
Common
Market^ arid / currency
tronics are even greater. In the
Outlook
there is a worldwide demand for
convertibility. Bdth developments
United States it is reported that
electronic products, and secondly,
After this brief review i,of the in my opinion are favorable.
In
the
share of
electronics
in
all
there has taken place in recent
basic factors underlying our ex- one of its aspects, of course, the
capital expenditures is at present
years a rapid scientific evolution
pansionist view for the Undusfryf Common ; Market; means strong
between 3% and 4%. It is ex¬
which could even be called a
one must consider the other "comcbriipetition, as European firms
pected that this figure will rise
"revolution."
plex forces that may affect'the' joih* forces. Several;. agreements
to 6% in 1965 and to 7% by 1975.
business outlook. These forces arehate'/klr eady been, concluded
A parallel increase is to be ex¬
Economic Bases for Expansion
competition, government poll- among European firms towards
pected
in
Europe
and
other
indus¬
Two fundamental economic fac¬
cies, and political, economic* arid-end. ; The xphyiojis ;je_ountertrial regions of the world. The
tors influence worldwide demand
financial developments. There can action for; American business is
to be no doubt
for any product, namely, popula¬ level; of capital expenditure
that competition, even- to-establish ainitstin^^ the Common
which
these
percentages
apply in a
tion and income. Today both are
highly technical industry Market in orders to. benefit from it
will almost double between now
such
as
rising throughout the world. In
ours, is increasing all over
mstead x>f competing with it. In
and 1975, so that the volume of
many parts of the world there is
the wqrld as electronics evolves>
e establishment of
business and industrial spending
occurring what has been called a
from a comparatively smalfindusr
Wts 18 n«t practifor electronics will be multiplied
pop u 1 a t i o n explosion. In the
try to a larger and more estab- fablf,' licensmg^ a|reements seem
United States, for example, it is by approximately 4. As an indica¬
good, although affected by
number of factors such

dent,
b

econonr ic

-inlist be

echoes

McCaffrey V.P.

Of Harriman Ripley

found in transistors and other solid state
have ap¬
components, most of today's comproximately
35
telephones
for
puting, guidance, navigation, and;
each 100 persons. In Europe the
space travel equipment, cotild noti
comparable figure is 6% and the have been
possible because of exrest of the world approximately
cessive
weight and/bulk. Since
4%. In Asia and Africa it is as
1952, when the first semi-conduclow as .3%. Shortages exist every¬
tors were introduced, the United
where even in the most developed
countries

R. L.

widens the- United States markets

the

power

Sales

new

electronics,

density

Here

still

».'■

business.

outlook

phone. The world has still far to

Henry H. Scudder

com¬

the

example,

of communication—the tele¬

:orm

like."

revolution

for

world-wide

working for

are

will participate.

uum

Brit-

ish budget provides some stimula¬

* (Special, to The Financial Chrcnicije)

SAN FRANCISCO, Calif.^-Max¬

Jr: has-j pined the
Upharii & Co;, 232

well E. Bublitz;.

stafL=o£ Harris,

Montgomery; Street.

Volume

5858

Number

169

The Commercial-and Financial

Chronicle

(2851)

duction
'

■

been

Oar Produclivity Record

>; i.;
,'

workers

engineers

and

nicians

not

may

reduced—in fact

have

try

tech-

the

■i".'i ■
'

National Bureau of

Economic Research, New York City

insight into

•

mere

are

of ma-

wastage

In other words, the inoutput per production is a broad term.

cuange

guuu.>

measures

inputs7 such

Just what lies types of

worked in each

behind it?

worker manhour has been due in

our,

difficulties when the quality of

case

consist

inputs

4; crease in

productivity score, which may
>-'A,'■
surprise some, is; provided * by one of the country's top
measurers. Among the observations made, Dr. Kendrick notes
3^: that ^industries with the largest productivity-increases,
shown relative price declines which have stimulated sales
.okr-.V
0; output
and, in turn, prompted pro ductivity~ad vance
\ opposite of a vicious circle and the
-lO'bA"creeping inflation is needed to spur
/ Regarding ,steel specifically, the economist finds upward
price trend and its lower post-war productivity increase than
i
the economy: as a whole has hurt steel's sales and long-run
:4
i'".;
comparative position* He explains the locus for price increase|
urges substantial research and productivity advance; and rec1 ommends program .to accelerate the, nation's growth rate.
A definitive

tirst

rejects and

;^teriai.

University, Washington, d. C. ;

-.George Washington

tnac

suppose

kendrick*

dr. john w.

which

over
time." Our
of output and produc¬
tivity may understate true in¬
creases on this score, just as price
Meaning of Productivity Change
indexes
correspondingly
over¬
We have said that the total pro¬ state price rises.
On the input
ductivity ratios measure change- side, our inability to measure and
in productive efficiency. But tha.; separately weight all the distinct

"vployed;-further, there has been a
-7 large increase in invested capital
per worker; and, finally, we shall

—Hiw Does It

■il':

gross,

associated

purchased materials and services,
as well as of labor and capital.

em-

are

output

manhours

occupational cate-

in the first place, increases in gory, also tends to understate the
otheroftypes
of labor,
of capital, output relative
to inputs ' reflect increase
in inputs, i£4since there
has
moforiolp
for
ni"n/liintion
•
Unnn
— 1,

part; at least, to a substitution of
f

'V on/4

•

*P^^0U1r» °r actually, to drop.

/..meseuays^ Output: must be redetermine the extent of technologi- tions.- At best, our productivity
7v
ah
associated in- cal advance.
4-'.-XXX''
indexes are fairly rough meas-.
puts in order ,id reveal the net
•
,spPnnH : nrnHnpfivirv
mnv
in- ures,
and certainly significance
^
u! Second, productivity may in/savings of inputs, achieved over crease as a.result of economies of should not be attached to every

■

•

10th of

"3y!

I The iron and steel industry is years; and then to appraise t*>
emdency
Thii
J, one whose good economic health, record and ask where do we go "total: produdtivity" measure ', is
untt continuing progress are of from here. But first I niust.dis- obtalned by weighting the input

■fi
.

cial applications. If we wish to inputs affect the movement of

1v
leads to th? general def-• probe; more deeply,; we must say the series.: Needless to say, the
ft inition to productivity which is* that the basic values and institu- quality of the basic data also afbecoming
increasingly
accepted tions of a society ultimately de- fects the accuracy of the calcula-

silciahzation
maehrnes

•

all of

concern to

M! nortnnf mip in

important role in

•

■pi? producing for
all three

jor
;

sectors:

ma¬

economic

of their meaning.

„.

con-

y;.
4,/..

0f output by their unit values, or
prices, in the base period.

concept has been defined and used

measures

/ ment for

loosely, in different ways by dif-

real

na-

s-v?

jtonal security

7.:

poses,

In recent

-•f« :

has

4-'av»

the

for

1 •

the
represents

economy,

product

national

some

the

changes

produc¬
perspective to

recent

see

look at the record for a compara-

tively long period of time. Over
the 68 years between 1889 and
1957, total factor productivity in
the private sector of the U. S.
rose

economy

indus¬

extractive

helps

tivity

nual

tries.

rate

d£

also

inputs

Last, over short periods of time,

-A-

J. 2

effi"

at an average an¬
Total factor

1.7%.

rose

the

average

fhA*

designate the

been

made
to

andplther°er
wh^n con" a co"solidated production state- produc'tMty "as" measured reflects rate of p% "a year,. Thus inputs
and there has been con- ment for all firms and other pro- changing rates of utilization of ca- and productivity have contributed

meaning
"5'i JiZ"

years increas¬
ing recogni¬
tion

v\Arvrvl

percentage point change

National Productivity Changes

Certain overhead type inputs or activities are spread over
increasing numbers of units, re¬
ducing unit costs. To some extent,
however, this may be offset by a

obtained

are

measures

ducers,-and
V. the govern-

'X.X purposes.

men

which

qiency.

by
4/ weighting the units of each type
Put

„

...

Concept and Definition of
Productivity

and

nlants

sioie wmcn contributes to eiti-

dhX'xJh-:-

sumers,-pro¬

Xe^

the concept of productivity..meaSures
each class of input
*nnderlvm0
measures-v.-This
iS'-u„
„
1
iL
underlying • mv
my measures.
This is
by ,u.
its rela(ive cost in a
base
peessentiai ior a clear.understanding
riod—just as the aggregate out-

due to its im-;;.cuss

,/■=■

ffrms

difference in the measures.

qens^' du"ng. units» m which purchases pacity. In periods of recession, in equal proportion to the 3.5%
h?en nc=ed to and sales among firms wash out, productivity increases less or de- average a^mm! ^-rease in real
r?fin«
to
-' °U/ 8J?
purchases re- clines as lants are used below
gross private product.
;
lati.os of output,to main. In this case, the associated their most efficient rates.
But 4 The annual estimates are shown
broadest

he«

V" M
j
' +
n
,
_•
mcu" must cxxicicul j-cttca. juuv
ine annual esumates are snuwii
Dr- J- w* Kendrick ml
n
imp
factor
should not affect the in
Exhibit
1. Theavencfe
total input
puts, in
physical vn
volume
te n s. mputs
factors boil
of production, laboi and thig
trends
as measured over a oeriod
iq
a
weighted
of series
laboi*
people to toe role of productiv- In this usagd, there is a whole capital, including land. The same of years tSt include a number of and coital inputJt H can
ttv
advance
the
most
dvnamic
cneetnim
of
nrodurtivitv
fw
atfirm
if
01
years
inat
mciuae
a
numoei
ox
ana
capital
inputs.^-li
can
be
that
:
capital input — measuredseen
by
tty advance as the most dynamic spectrum of productivity meas-4is true of an industry or firm if bu5ines^ cvcles
:
element
effecting j e c o 11 o m i c ures—as many as there are dif-; output is measured net of pur^
T
u' -i*
• +
t
v
Continued on page 30
S; growth and effecting .changes in ferent types of inputs, or differ- chased materials and contractual
,,
y' snouia point out tnat
H: the structure of the economy.
As ent methods of measuring output J-services, i.e., as real value added, there are various technical^aspects
1
The estimates underlying this wera
a measure of the ratio of output
and input
A? '
54 \ 44 suchlndustry and company measmeasurement which affect the prepared
by the author for the National
Bureau of Economic Research. They have
14to associated inputs, productivity
Now there is no reason not-to r ures are comparable with the
fdStd
recently been summarized and graphed
,-c^ges largely reflect techno- compute these "partiaKproductnational .measures. But for cer- tP«on ^Ihese techrdcal
i

ktmmmmmmmmmmmmmmm

neenniolo/l

down to the^basic

thod ghtfu
ebtfin
tnOU
1

L sS

•

^t^fm^ely

analytical pAta, i. h
Vthat
»>easure company or induS- output measurement encounters No. 63. N. B. E. R. 1959).

S
even

V ;I

the

more.-important', than

increase in: the: inputs of labor-and

capital

in promoting the

growth

of this type of/measure,--''"output per manhour/! it indicates
changes in manhour requirements

^'4

type

This announcement
.

.,4f tivity^' 9'dvahCO/3ias:^been^ viewed as- hours worked per unit, of ■ output/'^
the 4 m o.s t -* important * element Thus, a declining, ratio indicates
/
necessary to reconstruct warworn
that . there / have .been/savihgs
economies after World War II; to achieved in the ,use of manpower
44
4' promote .the'devglopmeiit of eco-. per unit of.produc|:.V All too often: ?
4 /
4 nomically backward areas; to inthe /"output per manhour'!;meas'J. crease; t h e'-X relative
material ures,> misleadingly called -"labor*
strength and potential power po- productivity,"/, have been inter-:
// ?ition of the free world vis'-a-vis preted as indicating changes4 in
i
///the Cpmmqnist blnr"
^
the efficiency of labor, or chan es
7:4 recently, as a means of mitigating in productive efficiency generally.
.inflationary pressure j ai.a as a Both
interpretations .are .'false.
./ rough guide. to the/increases in Changes in labor efficiency ,:as
; v wage-rates/ that!
would, .be -.ap- such are but. one/of many eleproximately consistent with stable ments affecting productivity.
prices.
/; •
4 ",
V:: change/and thp "output per man-/
Thefortunes of individual firms hour" indexes .refl.optj not ..only; r, *
and'industries'are .likewise afr - changes in- productive^^efficiency,.
tile fectednbv theirs relative rate-- ^f generally, but also subshtutionsof >

is not an

offer to sell,

or a

solicitation of an offer to buy these securities.
Prospectus. \
; ;
:/

The offering is made only by the

4 "

;

Sh
pX

4;'':'4,': //

$20,000,000

Northern Illinois Gas

Bonds, 5% Series due June 1, 1984

First Mortgage
'

'/4

Company

/Dated June 1, 195?.

4*.

•

;

rf*-l

accrued interest

Price 100.712% and

•

If a com-,
does not increase its p^oductivity as rapidly as its com-

productivity advance.
pany

other inputs for; l a h o r, u i.e., {;
ehanges in the proportions of .in- /
puts used in the productioii proc- >

. 4 ,
• .
:
,
per manhour indexes /
changes in productive ef- :
ficiency even less satisfactorily V
1 ^
timately leads to bankruptcy. .In- when the manhours relate only to >'•:
'*// dustries whose average rates of particular classes of employees, ; "
productivity advance are below such as production workers.: Smce
the national average tend to ex- production workers in man'Tac- •
perience relative increases in unit turinc have dropoed from 84% to '
costs and prices; which usually less than 78% of all employees "
dampen the expansion of their between 1948 and 1957, it is ap- ;
•
.•;i sales and output. Su^h industries
parent that output per nroduction
:-'f
tervd to become relatively less im- worker manhour tends to overji jportant employers of labor and state the/saving achieved in use of
";4i creators of capital compared w't.h labor generally.
4 others
that
a^e
technologically
To illustrate my point,, let us •
more progressive.
:'
suppose, that
an as^emMy line
I should like, ta present some has been automated.; The nummore debited facts about, omdno°f nro^uetion workers in a .
ttvi+y
change in
the American plant have been reduced drafti- ;
eeon^my over recent decades and callv. But the resulting la^ge in-

petitors,

this

reflected

will

the

Prospectus may be obtained in any state in which this announcement is circulated from,only
of the undersigned and other dealers as may lawfully offer these securities in such state.
4

The

eventually be essand loss -. Output

measure

■

BACHE &. CO.
WM.

BALL,
THE

,'Y:
'

•

*An

address

Dr.

the 67th general meeting

Kendrick

before

the Ameri-an

Steel Institute, New York
DigitizedIron
for and
FRASER

City,

in outpnt per production
Worker manhour is f1? irC'S^re Of
the incrOfl^e in produofive 'e flciency achieved), because non-prOr

EVANS
-

MULLANEY. WELLS &

INCORPORATED

1939

IRA HAUPT & CO.

'• ."

FREEMAN
& COMPANY
r
*
/■ > >

J. S. STRAUSS & CO.

RAND & CO.
&

COMPANY

STIFEL.NICOLAUS

June 24,

•

COE

McMASTER HUTCHINSON & CO.

crease

BURNHAM AND COMPANY

VAN ALSTYNE, NOEL &, CO.

MACKALL

* CO.

INCORPORATED

AUCHINCLOSS, PARKER & REDPATH

LEMON &. CO.

SHEARSON, HAMMILL & CO.

COURTS & CO.

MILWAUKEECOMPANY
'

INCORPORATED

BURGE & KRAUS

BAXTER & COMPANY

POLLOCK &, CO., INC.

JOHNSTON,

•

WEEDEN & CO.

PRESSPRICH & CO.

LADENBURG, THALMANN & CO.

INCORPORATED

BECKER & CO.

4"' 47

HALSEY, STUART & CO. INC.

profit

and^ .unless _fhe
un4:favorable trend is corrected, it ulstatement

such

•

;

CARL

THOMASCOMPANY

PFORZHEIMER & CO.

J. R. WlLLISTON &BEANE

(2852)

The Commercial and Financial Chronicle

Paiticular Challenges Confronting
Petrochemicals Excellent Outlook
By P. L. RICHARDS*

This

crude

still hardly

oil, and by careful

actually

mean

a compound
hydrogen,

oxygen,
to
lesser

carbon,

are

about
t r o-

chemical

and

therefore

product which
made

made

a company

could

this

interest

one

compares

of crude oil.

identify
as
being a petro-

Richards

These

kind of thoughts
the number of

the

are

chemical

that

organization. Actually, what we
are
really talking about is that
segment of the chemical industry

petrochemical
manufacturers
to
multiply many times over during

which

utilizes

chemical

the

storehouse

called

crude

caused

the past decade.

tremendous

starting raw material to
make nearly the whole gamut of
organic chemicals. Petrochemicals
as

have

Well, what is ahead for the next
10 years?

Looking at petrochemical spe¬
cifically, the challenges of profit¬
ability,
growth
and
expansion,
are the progeny of the very suc¬
competition, and manpower Idecessful marriage of the chemical
velopment which apply to the
and petroleum industries.
chemcial field broadly certainly
/•
'
f
'•
1
■1 v
are very much with us in market¬
Impact of World War II
ing
petrochemicals.
There ' are,
Back in 1920, there were only
however, some additional areas
two
companies
in
the
petro¬ which it
might pay us to examine
chemical
business,
the
Union at least
briefly to review some of
Carbide Corporation, and my own
the challenges which seem per¬
company, Standard Oil Company
haps particularly important to the
(New Jersey). By the close of
petrochemical field.
World ;War II, there were still
only two or three dozen com¬
Trend to Vertical Integration
■■

•.

...

panies,

while

several

hundred.

today

there

The

are

Manufac¬

turing Chemists' Association has
published
figures
which
show
that

even

about

late

the

icals

from

petroleum.

the

1940

only
chem¬

organic

dervied

were

Then

the

came

tremendous

impetus
of
World
War II. By 1945, this figure was
about 22%, nearly 60%
by 1950,
and today the figure is getting
to

90%.

Knowing what we
do today, we might wonder
why
it took so long. Well, I don't have

the complete
answer, but from the
petroleum side I can remember

that

only

had

about

write

hensive

report

years

rather

additives. At that

ago

compre¬

lubricating oil
time, we were

selling relatively low volumes

solid

crystalline product, 2, 6ditertiary butyl paracresol (we
are still selling it—in better
vol¬
ume). At that time, this product
sold

$1.10

pound.

interest, however, that in report¬
ing

the

statistics

our

lubri¬

cating oil additive business, I
required

convert

was

volume

our

The first of these is INTEGRA¬
TION.

This

courts

but

the

not

type of
integration being discussed in our
is

raw

that

basic in their supply
materials or to move more

marketing products closer to the
interests. of
the
ultimate
con¬
For

the

chemically

oriented

petrochemical company,
the general tendency is to inte¬
grate backwards toward the basic
raw

material supply in order that

such may

sion to

be assured for

conver¬

finished products. On

the other hand, the petrochemical

having
principally
a
petroleum background tends to
integrate forwards towards more
complex end products which may
company

may not be actual
items but at least they

of this

solid

date. A man who
through the petroleum
after

his

roughneck

oil field could think
of barrels

chemical

materials.

The

raw

philosophy

is,

integration of

some

of their

larger

per

industry

days

in the

only in terms

day, and the unit

meaning for him.

*Based

talk

by Mr. Richards be® Rj® New York Section of the Amer¬
ican
Chemical
Society, New York City.
,

This
but

mon

one

reasons

appears

this

point
to

direction,

of the

most

heard

for

such

instance,

there

this

have to be

consumers.

debatable

there

trends

this is

changes.
may

ultimate

least

definite
and

latter

com¬

very substantial

revision in the

OVER-

situation,

that

in these areas,

success

magnitude

similar

economic

that

expect

can

industrial

and

making

into

reconcile all

terests

these varied

The

home

this

excess

marketing prob¬
lem of considerable magnitude;
Most of the petrochemical plants
are
large
continuous
units
(a
heritage mainly from their petro¬
leum
parent)
and as such
the
profitability of their operations
is

sensitive

very

divisor.

such

Most

operating

units

have

with

best

chance

for

ac¬

seem

developing new products
getting them into those

rapidly*1 as" possible

before competing

capacity

can

constructed abroad.
•

Super-Market

filth

best

poses

quickly

and

Here

complishing such would

suming

capacity

therefore, that

me,

realize such profits
while the opporutnities

can

that unnecessary dupli¬
cation of facilities and manpower
not encountered.

are

tance

Reselling

challenge
and

for

utilize

which

as¬

impor¬

marketers

the

broad

chemical

entrepreneurs whom we
variously resellers, jobbers,
wholesalers, agents, etc. Accus¬
call

tomed

chemical

are

industry

the

petro¬

think

terms of large volumes and large
unit
sales, the reseller has not
had too
big a role to play in
this type of markketing.
However,
as

know,

date the reseller has performed

tendency,

therefore, for those of

concerned

with

marketing the

sales

often

Sometimes
extent

reduced

this

that

prices.

carried

there

definite

weakening of the whole market
price structure. It is imperative
therefore, that we recognize not
only the short-term profit possi¬
bilities of such

sales but

that

seriously consider the long range
implications of our sales policies.
Decreasing Export Market
I

mentioned

sion

above

the

field

third
the

which

area

serious

concern

excess

us.

This is

EXPORT

Over recent years,

the

Frequently,
some

have
on

chemical
or

this

has

been

concession in prices,

general
had

such

view

can

the

over

extrapolate

ahead

the
has been made in

progress which

years

;

the

petrochemical field since the
close of World War II, it is rather

staggering
Our

us.

think

the

new

which must-be ahead

responsibility

both

ourselves

and

new

ability.

upon

few

lenges. There

have
of

only touched
larger chal¬

the

are many more,

continuing existence of such
is, of course, the really stimu¬
lating and satisfying part of our
business

marketing

chemicals.

petro¬

lack

never

at' the"'heart * bf

growth

and

best " to

our

challenge
of

industrial

cur

expansion.
measure

Let's

over

us.

G. Harold Pearson V-P
Of Parker, Ford
DALLAS,

Texas

—

Harold

Pearson

has
become
associated
with Parker, Ford &
Co., Inc., 211
North
Ervay Building, as Vice-

President

Trading
Department.

cus¬

Pearson

the

past

four years has
been active in

the investment

done

company

may

The

business

for

and

opened two

new

the

going

such

say

job to be done

part

Morris

Co.

issues.
has

also

branch offices, in
i 1 d i

n g,. Denton,
Texas, under the management of
James A. Parker, and in the Oil
and Gas Building, Wichita Falls,
Texas, under the direction of Lar¬

Robb. Mr. Parker formerly con¬
his own investment busi¬

ducted
ness

the years ahead.

over

trader

regional

this

in the

stment

ness

Ford

spend

here and it is worthy of consider¬
able
concentration
of
effort
on
our

and

Parker

was

many

n v e

local

decide

Suffices
real

way

Prior

banking busi¬
in" Dallas

G. Harold Pearson

matter

ramifications

the

what
chemical super¬

potentials.

that there is

and

Manager

to integrate such with the
marketing programs which petroprime suppliers to realise maxi¬

the

to this
the years ahead

sary

considerations.

for

challenge. We are in a progressive
and dynamic industry-which lies

years

into

and

the

tion this type of operation is here
to stay and it is therefore neces¬

each

de¬

marketing talent to be alert to
these possibilities and to
capitalize
upon
them to the very best of

Denver.

this

approaching

operation.

profit

for

road

our

Surface Has Hardly

in Denton.

over

the

areas.

of the European
capacity
is
con¬
basic petrochemical

the

other

from

side

149-

Broadway,

City.

percent

the

oil

(probably

three

produced

being upgraded

will

this
over

in
of

the

country is
the realiza¬

by
fuel
uses.
long range look, it seems
likely that this percentage

remain to be

satisfied, and where

better is there

materials

reservoir of

utilize

William
been

should add

sea

tremendous
and

combinations

gage

permuta¬
of prod¬

Zaretsky is

principal in

garil has been named Manager of
the
commodity
of
department
& Co., 2215 Church Ave¬
nue, it has been announced. Mr.

research

and

Bache

foreign producers and

type
development

With Bache & Co.

materials indicates

the

Co., "Inc. has
offices

BROOKLYN, N. Y.-^Tack Ma-

raw

with

Row, New York City, to en¬
in a securities business. David

expect

efforts

David

formed

the firm.

raw

water and air. The

number

Park

providing

these wants other than petroleum
and natural gas, and of course we

tions

Form William David Co.

increase
probably
several
Many needs of mankind still

fold.

Opens

crude

obtainable

Taking
most

five)

A. G. Zeller

starting with these elemental Magaril

& Co.,. Inc. is
securities ^business

ONEIDA, N. Y. — Alfred G.
Zeller is engaging in a securities

ucts

and

offices

New York

coin which says that soon we can
more

Williams

conducting

Street.

ethylene,
propylene,
butadiene,
and
the
like,
but
plants
for
synthetic
rubber,
plastics,
and
synthetic
textiles, all of which are large
consumers of these petrochemical
raw materials, are now
being con¬
structed. These events behoove us
at

perhaps

business from otfices at 425 Tilden

past

tions

look

wish

few

the

present, most
petrochemical

such

ways

storehouse,
namely,
crude
oil.
Marketing people teamed with
research groups have to spark¬
plug this effort. Today, relatively

business

with

some

largest one. This is the chal¬
petrochemical
companies

order

materials

challenge
in

lenge

European countries, it is be¬
coming increasingly difficult for
U. S. marketers to compete for

cerned

last

discuss

have to better utilize its chemical

the

these

R. G. Williams & Co.
Pt.

little

three years in particularly

Been

Scratched
The

markets.

the very
the petro¬

growth of

capacity

lowered

relatively

domestic

our

However,

raw

challenge

progress.

production

done at

two

push ahead

thereto he

abroad to supply the growing de¬
mand of the expanding economies

but

tremendous

not have strong feelings re¬
the desirability of this
situation, but I feel without ques¬

which

and

obviously we could
evening and several

believe

oil

garding

The

com¬

may

I have been
talking about often has been sold

there.

now

for

DECREASING

MARKET.

are

might call

market.

the

to all of

sent

tomers. From this start, the larger
ones

the

cmde

for

certainly not alone in this
effort, and the result of such for¬
eign
investments
leads
to
the

present

containing more than four carbon
atoms.
(Possible exceptions here
are
benzene, toluene and xylenes).
As
marketing people, and par¬
ticularly
in
the
petrochemical
field, these raw materials repre¬

valuable function in local
distribution with very rapid and

are

very

mum

expan¬

fractions.

individualized service to his

abroad.

company

petrochemical

hardly been scratched

utilization

all sales are not
large units, and to

conducted

products from this type of opera¬
tion to go after large volumes of

lies ahead

group

operate

at, say, 60% of capacity
break even. There is a great

Growth

still

petroleum

the

our

in¬

jump

markets

and

pumps

feet and

countries

It has been a problem of con¬
siderable magnitude to coordinate

sales

here

the
production from which they plan
to export at an attractive profit.

velop

additional,

ent

surface has

opportunities lie in an
opportunistic approach to foreign
marketing wherein as soon as we
recognize chances for attractive
both

the

which

utilizing the higher* molecular
weight compounds already pres¬

horizons

seems

exist.

plus

the

best

our

example of
where
are

soon

primed.^

company

ventures

Thursday. June 25, 1959

be,

may

be somewhat tem¬

course

companies thus engaged are
building capacities for the antici¬
pated
needs
within
their
own

the part of

material

suggests

porary

petrochemical business. Our Euro¬

the sale of chemical

raw

whatever

pean

India. Our

all familiar; will of

foreign affiliates

our

substantial

marketing organi¬
company undertaking
such forward integration. Whereas
zation for

course

should

actively pursue mar¬
kets in less developed areas such
as
South
America, Africa,
the
Near and Far East, and
perhaps

contend.

are

prize

own

substantial

here

course, that such companies have
to
recognize- (1)
the backward

interest

came

of millions of
pounds per year had
no

challenge

have

effect

product to bar¬

that

We
this

prices

customers, thus decreasing their
markets, and (2) in general the
rels of 42 gallons
each, in other somewhat
higher returns per dol¬
words, petroleum barrels. This, I
lar invested which
may be ex¬
think, is illustrative of some of
pected
on
those
products
of
the thinking which
prevailed at
sale

the

work

pounds

Less

world

are

being classified

development in these parts of the

consumer

removed: from

industry during the last few
A company intending ■ to
integrate either forwards or back¬
wards
builds capacity sufficient
lor its own needs and then nearly
always
adds
some
additional,
anticipating sales to others.

in the direction of producing and

sumer.

Sales

ical

tendency of
petrochemical companies either to
become

years,

ex¬

shown

the growth
rate of petrochemical production
and petroleum refining. Here we
see
the dynamic growth of the
petrochemical industry over the
past 10 years compared to the
more
mature industry of petro¬
leum refining which ,in turn, has
more than kept pace with the in¬
creases in population. Now, what
petroleum management have had
their
eyes
upon,
and what has
illustrated by the fact that petro¬
chemical products upgrade value

ex¬

can

talking

petrochemical field. The

when

and

nitrogen,

and

the
tent

sulfur

tents

must

chemical

present in

oil

marketers

scratched

already but it is certain

In view of this overall

with the spectre of excess capacity
which has prevailed in the chem¬

storehouse

evidence

some

can

manufacturing
patterns caused by the trend to
vertical
integration
by
petro¬
chemical companies leads me to
the second challenge with which

when
Today, however, the manage¬
we
talk
about
of
petrochemicals? ments
petroleum
companies
Actually, if the principal atoms are much more knowledgeable of

changes

EXPANSION. We

We have

Suggests

areas,

What do

can

expect their marketing efforts
to intensify over the years ahead.

of this

will

require
more
sales
personnel and perhaps a
different type of sales ^organiza¬

The

policy of large volume-sales at reduced
prices in terms of long-range implications.

derivatives

developed

by researching and developing

marketers to compete here in the
States
for
these
petrochemical
markets.

exports and increasing imports, by developing sales to under-

re-examination

in
long-term

conducted

under

Challenge of Over-Expansion

capacity, and declining

excess

Developed Areas

Spectre of over-expansion and other challenges that must, now
bo faced before the petrochemical industry can realize the
staggering growth prospects ahead, compared to progress
since World War II, receive Mr. Richards' solutional analyses.
Well versed in manufacturing, research and sales, the author
overcoming present

commonly

volumes

contracts by relatively few people,
the sale of more complex chemical

tion.

Assistant Sales Manager, Enjay Company, Inc., New York City

suggests

most

l.arge

modity
five

has been
brokerage

years.

the

business

com¬

for

Volume

lei*

Number 5858

the drain of The composite wholesale price inresumed. More dex, while trending upward of
more
American companies late, is just about where it was
in the sense of a 40% rise over and
the same period a year ago. This are
expanding their production last May." In many instances pro¬
abroad.
The
implications of this ducers have thus far been able to
was the first year-to-year increase
in 11 quarters.
The rise in ap¬ upon employment here at home absorb wage increases or higher
provals was mainly centered in have yet to be thought through. material costs. In the light of the
ations

The Economic Outlook at Midyear
By MARTIN R. GAINSBRUGH*
Chief

Economist, National Industrial Conference Board
New

York

City

an-

peak, preceives this shift as the beginning of
and recalls doleful views of unemploy¬
of just a few months ago in pointing out that the mid¬

percentage is no larger than past prosperity periods. Mr.
Gainsbrugh credits expansion to behavior of personal income
and buying, and to private business investment. Weighing the
disturbing and encouraging elements surrounding the near
term outlook, he finds the balance favorable for prosperity
without inflation in the period immediately ahead.
year

little

than

business revival

April,

which

activity to

in¬

after

dustry is

achievement

now-

than

ever

fore

in-the

be¬

nation's

his¬

tory. Total
factory output
is already well

peak.

Late-,

comers

to the

tern

durable

Negative

rise in gross

corporate

well
figure in relative terms—say
as
a
percentage of economic ac¬
tivity or in terms of sales margins,
or in other meaningful comparar.— ___
_ _ _
_____
this

national product rep-

„

Five conclusions suggest them-

jng standards. As of midyear, the
ni'ture. Now, as of mid-1959, most American people now have higher
of
the
capital goods producers reai incomes per capita than they
have also joined the roster of in- had
prior to the recession,
dustries operating at new highs.

selves from this review of trends
in business at midyear. The first
I have already underscored, so I

elusion

only two of the heavy

the

Der

transformation

prosperity,

instruments and fur-

can

pattern which bein soft goods now
characterizes virtually
all of
initially

the

Credits Personal Consumption
Strength

Percent

its

That figure for the
month of April was $373 billion,
or nearly $25
billion higher than

»*

broadly based

Unemployment

Woes
recovery

has been transformed into increas-

ingly widespread prosperity, it
has dramatically altered the un-

employment situation. Recall that
a few months ago we were
told that the problem of persistent
mass
unemployment of the type
just

knew in the Thirties

turned

had

re-

plague the American
And yet, as of midyear,
of unemployment
larger than it has been in

economy.

the percentage

past periods of prosperity. As output rose, first the hours of work
were
expanded.
Then as fatter
ord.er books heightened business

confidence, the lengthening of the
work-week was followed by the
recall of more and more workers,
This

was

capital goods

reces-

sion right from the outset.
rable

goods

In dumanufacturing, em-

ployment fell from
8.6

million

been

10 million to

the

recession's

Steadily,

trough.
month

of further gains in
on,i
in^asp

in personal
corporate
profits
and Ithe
income,
amincrease
not as

enlarged the

discouraged as are some of my
colleagues about the prospects of

eve,in tt^connl?ith

first

^to

forces of private investment
rising consumption expendi-

ary

and

which I have highlighted
earlier, should contribute toward
continuing upturn in the fourth

tures,

quarter.
of renewed
of the

is the threat

Fifth

This is another

inflation.

^Zrtend

J*011

not

1959,

month after
employment has

a year

Not

trough t"f moaths immed^te y
f^ead, but welt into the early
1960s-

N. Y. and Amer. S. E.

negative factors to be put into our

To Close July

evaluation of the prosperity pre¬

The New York

report

purchases, in the bidding up of and the American Stock Exchange
farm lands,
and in urban land have voted to close the Exchanges
values. Add,to this the difficulties
FriHav
Tulv 3
to 2ive memof the United States Treasury m on Friday> Jv^y
» 1
g

throughout this bers and employees the uenefit of
the continuing a three-day weekend.
foreign drain of gold. These are ; Tjie Governing Boards of both
disturbing; elements that sui round gxciianges aiso announced a new
itself

financing
fiscal

and

year

the outlook as we

enter the second

...

policy providing that when any
holiday observed by the Exchange

half of 1959.

considerable progress
our battle against fans on a Saturday, the Exchange
inflation over the past year. Oui
.jj n0^
Gp€n for business on
consumer price index, for exam..
____
pie, has remained virtually un- the preceding Friday,
'Un¬
changed over the past 12 months, usual business conditions exist.
Even

was

so,

made

unless

New Issue

387,300 Shares

the Joint

In-

Congressional Committee on

Taxation is of
some interest in this connection,
Their estimate of personal income
for purposes of determining revenues from personal income taxes
was $384 billion for the first six
months of calendar year 1960—
and this estimate was made several months ago, when recovery
was seemingly lagging,
Expansionary force number one,
as I see it, then is the ever-higher
aspirations of America's consumers for more and better* goods and
services backed up by rising levels
of personal income. We are also
witnessing the beginning of a restoration of a better balance in
consumer
outlays
for durable
goods. These peaked out in the
third quarter of 1955. The bigtag items now promise to regain
some of the ground they lost in
family budgets in the past four
ternal

Revenue

Wesco Financial

Corporation
M'

...

Common Stock
($1

par

Price $23

value)

Per Share

oi a Prospectus describing these securities and the
be obtained within any State from any
regularly distribute k within such State. The
offered only by means of the Prospectus, and this an¬
neither an offer to sell nor a solicitation of any offer to buy.

Upon request, a copy

business of the Company may

Underwriter who may
securities

are

nouncement is

shift

from

re-

prosperity we now have
Also Credits Business Buying
nearly 60 million people employed
The second expansionary force
in nonagricultural industries. This is in the area of private business
is nearly two million more than investment. Profits have improved
at the
trough of the recession, sharply and as they rose so, too,
Comparing like months to mini- did
capital appropriations. We
mize seasonal influences, employ- have just released our latest figures in the capital appropriations
*An address by_ Mr. Gainsbrugh
be- series for the thousand largest
covery to

the

Annual

Business

the First

National

and

Finance

Bank in

Louis, St. Louis, Mo., June 12,

1959.

St.

manufacturing

corporations

we,
compile for Newsweek. Appropri-

Lazard Freres&Co.

Ripley&Co.

Incorporated

•

Stone & Webster

—-—

Forum

William Blair & Company

Goldman, Sachs & Co.
Harriman

June

25,1959.

Stock Exchange

earlier,

recent

iust

mmodintelv

rising in the durable goods years.

industries.

fore

In the light

receipts

sonal income.

diately ahead.

On an accrual

basis, Federal outlays ancl
are almost in balance.

give it in summary fashionvailing in mid-1959. Signs of spec¬
shift from recovery to pros¬ ulative fever are evident in equity

perity. Thus far, 1959 has lived
up to its advance billing as a good
business year, if not a spectacular
What has been behind this tranAmerican industry. This shift in- sition from recovery to prosper- one. In this connection, remember
to
new
high ground may well ity? First and foremost has been that this expansion is already
mark
the
end. off the recovery the strength of personal consump- more than a year old.
phase of the business cycle and tion. As we shift into prosperity, changes in the second half may
the beginning of the next classical this is intensified by accelerated not be as large as in the first half
phase of the business cycle gen- outlays
for
consumer
durable because in the closing half of 1958
erally called prosperity.
In that goods. Week after week, our sur- output was already well on
phase, while it may be long ex- veys of consumer buying plans way back toward pre-recession
tended, the rates of growth are (financed by Newsweek magazine) peaks.
historically slower than in the re- have shown a spirited advance,
The second point I have already
covery period. If this historic patparticularly in plans to buy more made is the intensification of fortem is again followed, the shape cars, as well as new homes and eign competition.
It was present
and slope- of the business curve appliances. We find consumer in- markedly in the first quarter; in
should begin to reflect this tra- tentions to purchase rising, backed
ditional shift in the months immc- by more and more dollars of perThe recovery

the

has

development tq be watched closely is the
emergence of a negative foreign

with

high

new

with

g,.

canita incomes and liv-

and into the next.

betterment of profit posi¬

buildup

into

seller's market. In connection

cash flow
American industry, along with

tion

rcCord

Recalls

feature at mid-

the difficulties of the U. S. Treasury, the prospect of an improved
income
before taxes budget position is already at hand
be nearing $50 billion, as we move out of this fiscal year

may

Forces

recovery

into

ground. A month or two ago this

gan

negative

is the improved profit position of American industry. While

......

instance

—

few

bringing this inflationary force
The swing from recovery to of
under control.
prosperity has decelerating as well greater depreciation also being
Further confirmation is to be
On balance, this review suggests
as accelerating influences.
One of earned.
And
this
greater
cash
found in still a third measure of
that this nation faces the best opthese is the change in the degree
flow,
in
turn,
is
having
its
impact
national economic activity — the of
stimulus-of-inventory policy. first upon appropriations and then portunity it has had since the end
dollar value of the nation's total Eva/wiThout*reference'' to'steel
upon the rate of capital invest- of World War II to have prosperity
output of goods and services. This lnvent0ries, for example, it is unment later this year and next.
without inflation in the period
measure—gross national
product likely that'w9 will
th'e next 12
Fourth
iq
the
orobable
slow- immediately ahead.
I would go
may total in excess of $47o bit- mont|ls experience a $14 billion
down in the
either
lion when it is announced for the swjtcli
the inventory policy of
because of labor-management difthe waue-cost.current quartei. Some of this industry as we did
12 fioulties or the "scare" steel in— successfully .with thf^ w S®
again reflects a higher price level. months
ventory
in
the
halt
Pri<*
But as has been true since recov'
•
V._
of 1959. However, the expansionbalancer this
cry first began, the bulk of the
v Another unfavorable

JM. R. G^unslmtghr

goods

true of

A third salient
year

This

the

industries

the

and
equipment, particularly the latter,
and should thus give_further body
to prosperity in late 19o9 and per- with
tive terms—is
about in keeping
past periods of prosperity.1
haps a^
I960.

balance. Our imports have gone
roughly by 10% since last year,
Our exports, 111 contrast, are alioady about 5 /o lower,

was

one

that appeared in the business scene in the opening half of
1959.. However, I think it is more
a longer-run negative than a factor that could quickly reverse the

authorizations

higher

signs

*ng ,new orders for new plant

resents an increase in real physical
industries
but
they,
too,
have output. These second-Quarter figfinally broken through in instance ures also firmly support the conafter

This

in'th'0 pa/t

pat¬

are

goods

most

widely dispersed

quarter

again

was

tbfr/qu^ter,

above its pre-

recession

recovery

gold

should in turn be reflected in ris-

prosperity.

turning out
more
goods

industries.
pronounced in
iron and steel industry.
The
were

These

in May, 1957, another period of
all-time prosperity. Thus, the employmentunemployment picture confirms
the
earlier
conclusion
of
the

Indus¬

peak.

second

the

as many companies
reported higher approvals com¬
pared with a year earlier than
reported lower approvals.

1958 has brought national

economic

try

year

"markedly"

Almost twice

ment in May, 1959 is fully a million above the number employed

the
began in

use

excess capacity and of intensified
competition domestically as well
the
as in foreign trade, they are trying their best to squeeze these
lagging industries were chemicals
—the
costs out of internal economies
only industry to show a
rather than to attempt a passyear-to-year decline—and petro¬
general
upward
trend
of
business,
through
as in other years of a
leum, with only a small increase.

durable

Gains

all-time

prosperity phases,
ment

markedly in the first

rose

quarter of 1959. 1

the

Conference Board's economist fixes overall economic activity
at

(2853)

Financial Chronicle

The Commercial and

;

Smith,Barney&Co.
•

....

Securities Corporation

(2854)

The Commercial and Financial Chronicle

a
larger number of
ployees as the years

Significant Banking Events
By J. REGIS WALTHOUR*

and

ferences

in Greensburg, Pa.

National Bank

program which,
well established

Pennsylvania banker warns inflation at home threatens our
competitive position; explains why all is not

•

cold
*W

that

scene

the

has continued and it has

war

become

international

;

and

'*•"

while

maintain

free

the

Personal

world

leadership in
military de¬
fense, it must

ment store sales
above

also carry on

praiiv

havp

hour^of
the

hsd

year

gains'.
Fortunately the
wholesale price index is actually

po¬

while

for the end of the year, 1958,
all banks in the United States and

latest

to the'iron curtain

countries, for

crease

est

supplies electricity,

population of 241,000 in five separate

the

one

southeast.

Principal

dairying and

face

(contributing

area

farming region,

with

Freeport is in

manufacturing, and

some

commercial (arming center.

■

ofVv electric

revenues, commercial 24% and industrial 28%.
Some
' •; 72% of
derived from domestic and space-heating
gas receipts are derive
:

.-.

latter contributing 53% compared with only 23%

done-

capacity at the end of 1958

purchased, capacity of 22,000

an n

:.'v;J-.V

whfrh

and

are

7 Electnc sales 111 1948 Provided 67% of revenues, gas 30%
.

(the
cLfS Sin
n/hPr fivS ^" ;:an:1949);\ffix^
Generating
which wli
were prev¬
have

one

served

val-* 'and steam 2<&- "Residential-rural business contributed 44% of

the operation
'

state,

cities

80% of revenues) has machine tools, automotive parts, hard-

.Lincoln is mainly

lnnf

low

total

165,000 kw plus

was

kw.VA

187,000

new

today

prices

the

these

changes

what

loss

investment

our

increasingly

vear

call

year

and

.'•an interest in

7 4,000

quiik1n

ta7

Mcf

.up

i ui

to that date.

; v.

obtained from Panhandle

Pipeline Co. of America.

Eastern

Pipe Line

The company also has

storage project in northeastern Illinois.

gas

shaving' plants with combined

were

protected

♦

peak

propane

but the tax savings made

possible ' by a
oiu
laws, offer little, satisfaction in
the face of the continuously^ de-

gas

and Natural Gas

officers

difficult. «.True,
have resulted in
profit

Natural

changes
we

year

statutory limitfor inter-• "interchange agreement

work

$251,331,512,000 and
of $277,880,159,000. The

have already deposit increase for the year was
occurred and are
continuing to $17,153,420,000, While total assets
occur in other areas. Of particular
increased $18,692,640,000.
significance has been the creation.
Pennsylvania, the deposits
of the European Economic Com- 0f
our
banks passed $15 billion

Hpvntp

and

gas,

Federal obligations/ These
substantial changes have made the

total assets

makelt~necessary 7o"in-;

available figures

Possesions on that date, showed
deposits

Gas

we , have 4 ■« 55,000 kw
generating unit is under construction and scheduled for
with* high,
commercial operation in 1961.
The company will ? continue to
return. This condition even threat-%i
i buy power, from the Commonwealth Edison under a five
ens"to

are

n.egis Waiihour
competition
for export
business is not, however, limited

ware and many other diversified small industries.

the'

market, but it
to

ago,

year

decidedly

nomics.

the

about

Banking too has continued to
develop its potentialities, and

The

and

customers

securities,

alent

Banking Growth

sition in inter¬

over

epnnri*ie«

come

123.7.

national eco-'

vi5riiL

and finance to
maintain and

field-

either

uirtU

one-tenth of 1% below a year ago
and the consumer price index is

the

rapidly changing security

ditional

three-tenths

heating, service to

north

study to the

banks.

Electric and Gas Co.

Electric

include

stock

have had

com¬

important

discussion
the

ues

trade,

expand its

iengthy

0Ur

offense

the
.

ls proper t0 say that bankers gen--:

substantially

the figures for a

within

rep0rt

boncj

ago.

and vigorous

through

are

hardly
brief

; More recent figures will show ad-

continuous

merce,

5.7%. The

this

automobiles, car loadings,
electric power output, and depart-

steam

Illinois

Rockford, Freeport and Lincoln. The Rockford
It

not

of 8.9%.

Steel,

Central Illinois
Central

sections of Illinois—three in the central part of the

Changing Securities Prices

must

its

is up

income

By OWEN ELY

starting with the-

ing. number. of special .schools]
providing technical .training to-

Federal Reserve Index of produc-

evident

Utility Securities

national

bankers and their employees.

year ago, or an increase

the

Public

"moonlight and roses with the banking business"; notes
"topsy-turvy" effect of rapidly changing securities prices on
banking operations; and observes governmental encroachment
in past year has not diminished.
the

Thursday, June 25, 1959

em-,-

American Jlnsti- A,
tute of Banking, includes a grow-

international

augment

by.' How- 1

ever, banking generally and our
Association particularly are
paying considerable attehtion to this
matter. Our own schools and con--

President, Pennsylvania Bankers Association

President, First

trained

completed in 1957.

daily

Two

capacity

The ^company's gas rates

of
are

against.price increases by suppliers, through cost ad¬

justment clauses applicable to all
The

has had

company

gas

rates]-;Y"'
'i

interesting record in recent

years.

i'-v.

irregular and the diviCommon

1948,
.

tariff

barrier

vi»c
countries

against

—

...

outsiders,

-percentage gain in deposits being "pVaced'on (uVure" Whn'iCTs'
4.9'9%, the highest gain since' in the form of rapidly
rising ^tock '

°«lnr SiatHfoS 1950. Savings accounts showed

our

orvwo

balance

Maintained,

of
we

trade

be.

£rnrJ?UJlfT
and merchandise

goods

here

While

all-time

or equity prices, while
feW
people want to

wJ h2JrZU
«

assets

our

thd'ttstdrii from^'bnd Ihlirel?

1959

net for the first quarter of 1959 is

r. /

vV4

there

was /

gave

AvvO

vV/

V CI Cv/lllC

I'M I

billion
billion

f 11

rw 11

possible

encroachment
State govfefn- >

all

they

City,

excessive

governmental

in industrial kwh sales and

that total

revenues

were

nearly 2%

the previous year).

ojjer^ to sell nor a solicitation of an
offering is made

offer to hay

;

•

(compared with 9% in

outlook, the company's report to stock¬
that "steadily rising electric and gas service de¬
bright residential and industrial growth picture cause
contihual expansion of our system facilities.
Programs designed
to attract new industry to our service areas are receiving consida

erable attention in both the Rockford and Lincoln

Divisions, with
surveying the areas for possible plant devel¬
opment projects.
Meanwhile, the outlook for existing industry
is mere than satisfactory.
Major manufacturers are looking ahead
to business increases in 1959 ranging as high as 25% above the
depressed levels of 1958. Home building in Rockford is expected
to increase more than. 30% over last year during the approaching
months, and /sizable gains in retail sales are anticipated following
the 1958 slump.
The retail trade in the RockEord area is receiving
a
boost from the establishment of a sixth shopping center, the
development of municipal parking facilities in long-established
business districts, and increasing popularity of the new Northwest
Tollway, which since August 1958, has provided areas east of
.

•

95,000 Shares

Specialties Co., Inc.

Rockford with fast

Common Stock
'

Copies of the Prospectus
may

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

Milton D. Blauner & Co.
Incorporated

access

the Rockford

trading area."

from $1.28 to $1.44 making the current yield 4.6%.
Based on the
latest reported earnings of $2.03 the price-earnings ratio is 15.5

J which is below the general utility

Stanley Heller & Co.

average, despite the

company's

favorable record of share earnings in recent years.
7 '

•

Revenues

Common Stork Record*

Year

(Millions.)

Earnings

I)i- idends

1958

$23

$2.08

$1.28

•;—>

Aprrox. Range

40-20

1957

1.95

1.28

26-21

1956

1.88

1.16

26-21
22-18

1955

1.66

0.91

1954

1.23

0.86

18-14

1953

1.10

0.82

15-14

1P52__

1.24

0.70

14-12

19"1

1.26

0.70

14-12

1950__

1.44

0.70

1949

1.36

0.70

11-

1948

1.32

0.70

12-9

■

''i

;

The stock has been seiling recently in the over-counter mar¬
ket around 31 Ve.
The dividend rate was increased early this year
"

($.10 Par Value)

Price $2.50
per

several tine prospects

of these securities.

June 25, 1959

Accurate

still

Regarding the 1959

mands and

only by the Prospectus.

NEW ISSUE

■{

-'i

holders stated

regu-

lation.

•

1 he

moderate

larger drop in miscellaneous sales (residential and commercial
gained moderately).
While total electric revenues held almost
eveh, gas and other miscellaneous revenues recorded good gains

♦

ThlS announcement ^ neither

■

sulted in-a decline of about 4%

survey,

show

company's .1958 increase in share earnings was accom¬
plished despite the industrial recession in the first half, which re¬

to must be continuously alert and
?i S?.Uate addltl011S to .Capi- make known to others the dangers

iah All this requires much more
skill and attention on the
part of

1958 and

The

^ ^

earned

increase.''.J'

ment on the operation of the free

peteers

should at

least equal

satlffacto.ry dividends and

address by Mr
Walthour before
65th
Annual Pennsylvania Bankers

Atlantic

Pany'had

SiSSS'?tion> and onthethis$2.03
ba!is"secms
1959 earninss sh01
in likely that
possibly

in the least in tMs^year,' and with
+n S ia9r^ased» ^ has been difficult
the growing desire of certain po1scale
^ain{,ai"
°ur
net
income
on
a
litical elements to be the pupwhich makes

•An

then

were

gv*.

Convention,

com-

i^the1 eadv mon^hfand tai.n..advanta§es which our comIn the
later, and unexpectedly
g'growing3 cos^s! The^utthls
SabaterdeC°Geross ^f&tiona^Prodthat wJil.e our Sross income

Association
J-J

common

have

recession

the

this period.However, ho additional

May

#65 1billion ud
427 1
ftoobillion,
up from
from 427.1

put); their

This

c°l a°' c0,ld.ucti"S our business, danger of continued
J? Sir; Broader services to overcome cer- of both Federal and

1958

apparently^ 'shares doubtless account for the irregular share earnings during

when

at^ome ca^quickly esf
rateTha^^de^his'ifhW^e

May

i'-j1
>if

a l-for-10 basis in 1952 and again in
November 1953. '* These substantial increases in the number of

intervening period of

STrSd^advantage of quality
From

rights
l-for-7 Vi

increased change " recently
done steadily since
announced v;that :r' earnings a chance to increase^ which they have do
most satisfactory manned a first quarter dividends in 4959^1953. ;■ Cr-£*"C"**;■
-v:;;
Wool
o «<%
•'
.s
great deaI of this Sr°wth has beeil were up 2.6% over the same pe- '
In the ,1-2 months ended April
jn time and
30/ 1959 share earnings were
savings interest-beab- riod of 1958,' they did not bother
t*-innh,AZ1ha$2.03, a slight decline from the $2.08 for 1958. Obviously the com?
^
percentage increase
nnnv
hari.*aTroadv mndif^ nn alinnst four-fifths nf thpi pnnitv diludiluin
-'
already made up almost four-fifths of the equity

SJ181*n
..eltorts
with
ese

tion

9.49%,

are

ibasis In'Feljruary-1851, on

was

outside
the
organised increase
moving to form a com- record,
parable
group
and
the
Latin
Americans
are\ drafting
similar
agreements among themselves.

area

stock
on

Adjusted for 3-for-2 split in 1955 and 5-for-4 in December,

10
9

1958.

•

.Volume 189

Number 5858

The Commercial and

...

them, pi esent Soviet leaders use
foreign trade as an instrument of

Doing Business With the Russians
;

•;

1
*

;
^
*

\
*

Soviet

•

„

boundaries

the

bureaucratic

as a

weapon of political warfare to the

Soviet State.

nn,

Marxist

Leninist

them

reaffirmed

economically

1955

■

.....

Soviet Trade Reliability

How reliable is the Soviet State

when

machinery of the
,

doctrines

nati?ns Jnd Pe°Pte emphasize this—and Khrushchev
it

under Communist control—and
chains

tionship of businessman to busiIt is trading with the

nessman.

tough-minded rulers of the Krem-

bloc, trade policy serves to
the

Terming the concept of normal trade with the Communists a
delusion, oil industrialist inveighs against deals designed to
help USSR build up its industrial machine. He urges that-we
maintain the lead in aiding underdeveloped countries, and that
our allies reject trade arrangements that aid USSR.Mr. Tracy
recalls what happened when Russia used a similar trade gambit
in the 1930's; notes Russia has not altered its expressed goal
of world domination and, thus, wants chemical, nuclear and
electronic equipment rather than consumer products; explains
what trade means under her cold war economic strategy of

not

This

businessman?

normal
ttussia.
•
economic and most for political practice for businessmen trading
Outside the iron Curtain, for- purposes." This statement should overseas to check the dependa-

said,

"We

value

least

trade

for

idle question—for it is

fulfills three purposes,

eign trade

It,-seeks

overcome

be given careful consideration by

^Russia s those-seeking to build

at)road-

bility,
credit,
and
past
pertrade formance of their foreign counter• .
parts. All of these factors become
about
it
doubly important when you are

up
with the Soviet monopoly.

important domestic shortages by
Second, it tries

]y[ake

bones

means business when considering dealing '■ with the
nlott he says trade is valued most for Russians. Even if there were no

^om^ moremadvancedr co^ntiTe? Khrushchev

im!r!i

rPl

tmV

political Masons. Look at what ideological qualms about trading
happened to, Soviet trade with with the Communists, a cursory
Yugoslavia
last year. As soon as such
glancetrade
at the
record reveals that
^,-fWon^c
is a risky business.

hicor

ndr^tiP

>•

'
.

Yugoslavia and Israel

conquest and refers to recent dumping,

the

Inside

Standard Oil Company
York City „•,
.*

New

Trade is important mainly

By O. V. TRACY*

•

the facts of life concerning.Soviet
motives.
y

frl^c?^0Wer' expansion an^ sub~

Vice-President and Director, Esso

(2855)

Financial Chronicle

And'
d

totn
it tries to

tWrd
thud.

Ww-u+iooi

fiovoa

qTi

experience, and disregard of international patents; and praises
chemical

industry's unanimous rejection of; recent purchase
Noting the Soviet Premier's threat* tov "bury" us,

offer.

Mr.

Tracy

"supplies the spade.";

changes of great magnitude have
taken place in every field of huendeavor. Political, economic,

forces

■

_
Iff dangerous

have-

by
both
sides meant unprece,dented destructiohVfor alT bellig-

world.

forces

causedVy

mnd

?•

Tracy

Tv/r^v,

Men have started

and

space,

timers

the

ironfc

trouble getting along
ticuiar planet
of thp

rnn«!f

velopments since

oxiw

ooviei

^1,""

—

_land

one-half

thei

nature.

^ mntracT

contract,

The

ine

case

weht to the Soviet Arbitration
Court for a decision.
The' Soviet export agency

&***&*
^fWI„Tc to create

4^ soviet e^xpou ^agency

deliver the crude oil to the Israeli

;

It is also imp0rtant to recognize firm because of "force ntejeure"-^'
the manner jn which the Russians an act beyond its control. It said
carry .on trade. The Communist that its export licenses had been

Cold

.anses. voicuwai

Wjap

changed, — thanks-to- the
nuclear stalemate, Soviet leaders

have

Recalls

y-1

weapons
weapons

war

^I101ce "-om ine iracie haps the most outstanding differ- delivery to Israel, or compensaence is in the monopoly character tion to the firm for losses result1930s Trade Gambit;
of Soviet foreign trade.
^ '
ing
from the arbitrary suspension
of these deliveries.
.

hanir«J^

trnrip

rpi ^f

'thp

with

nrlH

—

,lv^

|!Stes SS

t H

to ttie

Rusl^ns

going 10 iraae.

i+1

never

ever sold the United
$30 million worth bf

Soviets
was

far

tko

- *

•

----

orre-quarter of thq

•

niques.

^urface,
and. .about jYtWc.
world's popula-

the

maneuvering^ practically overnight.

Diplomatic

the

for

substituted

mono.-

plodding of the past.

Soviet

fPphnn,oeicai advances were

pub-

i£

^^fitlelf

I nst

vea

±ney iigure out

ae^ionr ar1rmfeflue„ced
bv demand

COurse

that the Soviet Government and
+»*
;•
its export agency were
one
and
rontract
.

-n-.-

the same,

«'

•

§SS?

and

that the contract

wween * it

^Gover^tnt

the

and

Therefore!

'basis ior the W

sians claiming that the contracts

prices

supply

Sc!factors?

were
cancelled I because of an
The foreign trade of the Soviet "act beyond their control.';
; runion,,on the pther hand, is carOf course, the Israeli claim was
riedloh only by the'government, rejected by the Soviet court—and'
whic^ owns and distributes all of a precedent was established^which •
the products that go into trade, makes doing business with the
extremely
Economic factors have little or Russians
extremely hazardous.
in
can
<
no influence on trade policies. All
Businessmen
can
experience
a^d Other

ex pur is

historv

hoY «iuch trade they can conduct^

most

^tVat sanctions S°ods m 1937. However, by tapping
XS'-iSst^ a^res- the- advanced technology of the

™

The Israeli finn pointed out'

corporations. Individual business-

cicrnifiponf

thewar^

-x

carried on by private citizens and

u-eahzed

par-

Free
b ree World,
worm, - trade
iraae is

the
XhG

In
Jn

„

f>:0'\X

J y%
^ shPUA"-cuit'
j? ux cmuih«., men decide
deciae wnn
mey are
are
imen
with wnom
whom they
the; heyday of trading in the rtoin^ tn trade
Thev figure out

oi,diplomac^ >pi-0i?gnan1& ^States

h£

DIOC.
:

world

a^encv

cert^X tVPL t^
keta; pertain y the*ta h are
,

*■

—

^hecSoviet Oil
^amages^ againstSoviet^Oil
EpS?
wVth which it had

tumoilT ll'tuaT

economic

mumsts control

Bolivia

session

hv +hp

^ effectiv^gam^^gg..,e
in the thirties, the Russians
S°1S .US1?f
gained V years in; .economic deas
our
natiorf is * concerned^ his
With the death oi Stalin m 1953,;., vel;ofjmeht,. And # soon as they
been the raoid pvSoJ r,f ihl the Soviet Unmp immediately in- got.iyrhat their wanted, trade with
Sino-Sovipt hlnr> TnHav
creased, the- use pf these tech-, the Outside world'was cut off
looay, me Lom-r
Onp

A^semblv

and'

t^ch^aiactmistic.of Soviet tiade
^ period

i?2Je must be waged with :|he w ap ps ^^

Th?6

Jp nvf'Sfl

for

v-uv..

nrises

„

bther nlan^t

Recent Dumping

recent United Nations Gen-

Jead\tP^utual^nihil^pn^m^e^^(^^^sia
^|^been operation differs drastically from withdrawn "by'! the Ministry ;of
military,,^tpaI1^ athat of the Western countries. Per- Foreign Trade—thus forbidding

each> other to rubble-^many times over.
overV^Butthese
But.these means
are being held in leserve—for an
eventuality which both sides hope

•

perfected.

ei,ai

into.^thermo-nuclear ^war.Sr a.

ICUULlag
reducing

structiv e;'power
have

to probe

Hfaa

undei

•s!iiA current Communist
PlsoJ^^e-^fi^i^jrhis is still an impor-

^pressure
has : been
abandoned..
Both sides have -the^^capability Pf

of/greatde-Y

hppn
been

foreign b>,;
or

This is not to say that

:■

in interna-"

wars

dangerous—for they could easily^
develop

tional ; rela- j
tions. Weapons ':?■

Soviet

the Czais

bmy^The State monopoly estabhshed over foreign trade allowed
Kremlin leaders to turn trade on

possessed

weapons

Limited

erents.

;

economic

nuclear

erful

policies, in
business, and

■

instrument - to

the East-West conflict;: The pow-

cha riges^in
government,

^
use

in' the

have

undei

.^6} Jhe: Bolshevik leyo^
maidfets
^ld ^lanne^
^
over the
econin4 control
controL over
the domestic
domestic econ-

been at work;
everywhere

These

J2&

much

Egypt, during the Suez crisis, the
Soviet Union immediately
can¬
celled a contract to deliver crude
,
.
T
„rl„aTo
oil to an
Israeli
private
concern.
a^ Israeli private concern.
>

There were two reasons for this-revolubnn
; Indonesia> Malaya,
Thailand
First, America and NATO took a
complained against the Soviet
firm stand against Russian armed
in order to allow Union dumpinS tin 011 the world
threats and aggression. Secondly,
to exercise full marketAluminum, rice, cotton,
military amun
action ucv.aiuc
became «
a
very Soviet
planners to exeicise lull
d
u
f
other products
military
....

man

social.

against

moved

Israel

When

Suez

crisis

Since the end of World War II,

and

Historically,

it won't be fulfilled unless the Free World

says

;

to Israel during the

pened
;vr> munism.

•

—j

emu.

are

liuyuiw

con-

by the Soviet Ministry of
Soviet Foreign Trade-headed up by Mr.
about, trolled

V;pq\7v
lO!
heavy financial
financial losses
if a goveminent refuses to honor its contracts. The Soviets; have shown
^

-—-—

hesitate

do this.

are

legal

compensation for

nis.wen-publicized.wu*
can industrial and financial cen- ;;
ters. iHowevet, recent pronounce"
U
ments ' from the Kremlin for
"htcreased trade" and "peaceful
this addition competition" should not blind us to
means to continue its expansion,
to the Soviet arsenal. The Soviet;i- < ■ —'
looriprc pall
it "trade and aid." I
—v...leaders call it "trade and aid." I
An address by Mr. Tracy before the .prefer Calling it .economic wat
This advertisement is neither
an«^facturmgr. Chemists' ^ Association,
fare—fOr. the vCOnCCpt Of normal

industrial
growth ' and technical i^ny,^1111^1^achievements have attracted many time
a new
underdeveloped
nations' to
the was forged.
;
Soviet* system.
, ;
: ;
»
v
;
^
In the early 1950s, the Soviet ■>;
Union was forced to look for new
I want to discuss

""'7'

cold.^a^weap®-

that

•

.P'f

'•

Sfmngs.'w. Ya-» '*June 11, trade
with.the
Communistsbefore
is a
delusion.
Like-the}.Czars

agency.

What about credits?

Remember that trade with the

Soviet Union is not trade with
Ivan the independent entrepreneur. It is not the normal rela^

nnno

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

buy

any

'•

NEW

ISSUE

143,750 Shares

■

• • • •
j,

M'-

maintaining

r.,

Plastic Materials &

...

i'V

for

Polymers, Inc.

primary market in

Common Stock

APLASTIC MATERIALS & POLYMERS; INC

(10^ Par Value)

>•

•

Banks, Brokers and lnstitutions

■*

Prospectus

ARNOLD MALKAN

Price $4

request

upon

Per Share

&
CO,J INC.

Copies of the Prospectus may

be obtained from the undersigned.

underwriting and -private financing
...

-i',

r-'i

Filor, Bullard & Smyth

BROADWAY, NEW YORK 4, N. Y.
TELEPHONE:

TELETYPE:

4-8125

N.Y. 1-8762 and N.Y. 1-3763

June

22, 1959

Whea

Khrushchev made his bid for trade
last year he stipulated that the

of this Stoc\.

The Commercial and Financial Chronicle

(2856)

Thursday, June 25, 1959

Named Director
John

From

Washington
Ahead of the News

I. Taeni

director

Inc.,

John

has

By CARLISLE BARGERON

been

elected

THE MARKET... AND YOU

Brothers,

anonunced

by
Fowler, Jr.; Chairman.

Mr. Taeni is

New
of

has

Seeman

been

York

Stock

By WALLACE

associate of the

Exchange

STREETE

firm

Josephthal & Co., having joined

that company

Stocks did

lot of aimless slash in
refinery operations
milling around this week, the by Sinclair, and more sched¬
Named Director
traditional summer
practically ever since the Second and pour out money all over the
rally still uled cutbacks throughout the
World War, the Administration world to help the economies of
FORT WAYNE, Ind. —Richard showing no
signs
of
being an summer unless the demand
has trouble every year with its underdeveloped countries.
A.
O'Connor, Chairman of the influence on
prices yet. In picks up, was a stark indica¬
This is the honest way to do it
foreign aid or
Board of The Magnavox Co., has
mutual secu¬
but it is a question of how long
how harrowing the
announced the election of Donald fact, if it wasn't for pinpoint tion of
the public will stand for it.
rity bill. Con¬
To N. McDonnell, Senior Vice-Presi¬
strength in some chemical, business was at the moment.
gress
invari¬
give this money in our own de¬ dent of Blyth & Co., Inc., to the
drug and metal issues, the It. succeeded in chilling
fense is one thing; to give it just board
ably
whittles
Although it has been going on Now

from

down

the

amount

the

Adminis¬

tration

to rehabilitate backward countries

when
feeling

against for¬
eign aid be¬
came
quite
strong, it was

nationalists.

Carlisle

Bargeron

palatable for the tax ridden public
stand. It

felt that mutual

was

aid, by which it is presently called,
salable.

was more

A few years ago, too, in an ef¬
to take the sting off the

fort

giveaways, it was decided to wrap
up in the general foreign de¬

fense

bill.

The

propaganda was
that it was military support, de¬
signed to back up our military
installations in foreign countries.

Jacob

The Foreign Relations Commit¬
of the Senate, however, has

adopted Senator Fulbright's figure
for the loan fund.
The latter's
assistance
is
supposed
to
be

through the form of loans but the
catch in that is that a large part
of the loans, that is loans to most
make it possible for our bomb countries, are repaid in the soft
canning planes to take off and currency of the borrowing coun¬
us

that

Russia. Bases

much

closer to

Turkey, Greece,
Italy, Spain, Alaska, Germany etc.,

rain
than

bombs
30

over

minutes

Russia

time.

undoubtedly* acted

less

has

This

Trip to Israel

market

would

have

been

sorrier matter what with

It continued to

of cautious

a case

eign

Reiner

study of

our

whole for¬

program, reported that
in the future, our
emphasis should

polio vaccine."

placed

upon

economic

aid

rather than the

military. We were
overburdening the countries with
military aid, it was reported.
So

the

emphasis this

placed

ance

with

year

will

economic assist¬
view to helping the

upon
a

the

backward countries improve their
economies.
This is what we have
been doing but in a disguised
way.

State

Vickers Brothers.

Waller G. Kruge lo

t'f

Street.

smaller

:'f

Walter

C. Kruge will conduct
securities business from offices
at 50 Broadway, New York

individual

dealer.
of

J. Ruether has joined the staff of
J. P. Arms, Incorporated, Pills-

bury Building.

pieces.

Aluminum

MINNEAPOLIS, Minn.—Robert

bright

and bear markets in different

diverse

actions

single

group such as the
where
Boeing was

aircrafts

down

quarter in value while Martin
had tacked

50%

some

far this year.

able to

higher.

move

:y"■■y;-.'

Simonds

sold

Saw, for instance,

momentarily

only

this

•

year below last year's peak '
and with the solid backing of
a

strong rebound

tions has

pushed

in
to

opera¬
a

peak

for the last handful of years.

Nevertheless, the shares
still

available

better

than

are,

yield of
4t4% when the
a

yield of the blue
chips is nearly a percentage
point lower.
average

5|£

•

5j[S

With

profits more than;
on
a 27%
sales in¬
crease in the first quarter this
year, the dividend rate has
doubled

been increased and could

most

rested

the

were

sec¬

for

the

pending the last week

before the union contracts

expire,

Hayden, Stone Adds

again if, as ex¬
share earnings

pected,

per
moved to a level better than,
that of
ness

1957

before the busi¬

recession

business.

The

into

the

company

has

cut

the

prospect
of
a been liberal in its dividend
upsetting the sec¬ payout which, while it en¬
tion
unduly. Coppers were tailed fluctuations
payout
quiet; and generally steady was Jj>5 a share in 1956, $3.50
without adding any interest last
year—could mean better
to the proceedings.
returns
as
the business re¬
strike

(Special to The Financial Chronicle)

issues

in the metals

ones

Steels

tion.

was

Walter

bull

increased

City,

formerly an officer
Kruge & Co., Inc.

had

of the

groups to concentrate on the

>''V;y

Joins J. P. Arms
(Special to The Financial Chronicle)

students

talking

(Special to The Financial Chronicle)

Matthew J. Merritt, Jr., Presi¬
LAWRENCEVILLE, 111.—Fran¬ improved sympathetically as
dent; Gerard P. Daly, Treasurer; cis F.
Sigmon has become con¬ the next logical outfit in the
and James S. Vickers,
Secretary; nected with John L.
Eisner, 1017 chain to carve its shares into
All

Open Own Office

market

stopped

are

formerly associated with

■«'V%

they

oral

Glore, Forgan Adds

try. We spend this money in the
borrowing countries by way 0f

were

(Special to The Financial Chronicle)

aid

ran

tend its consolidating
The hunt for favored issues,
pause
Co., Ill and let individual issues, like consequently, was pretty
Broadway, New York City, mem¬ American Cyanamid,
respond much concentrated, not only
bers of the New York Stock Ex¬
to
individual developments. in issues with
good prospects
change, have announced that on
The spur in Cyanamid was and an above
June 1, C. Paul Klotz and Julius J.
average yield
of
the
Mugno became partners in the confirmation
widely but ones that already have
firm.
rumored development of an shown marketwise that
E.

to make

the new
past a dozen a

Milton Reiner Admits

Milton

Forming in N. Y. G.

by former

that

making

Selectivity was of an even
be far more higher order than it has been
so far in the
10-year bull mar¬
buyers than
ket swing, to the point where

deterrent

Secretary of War W. H. Draper,
Jr., whom Mr. Eisenhower named

outfits

ing to drag despite occasional day.
strength elsewhere.

Merrill, Vickers Inc.

A committee headed

oil

aircrafts and utilities continu¬ lows lists

building highways, hospitals, and
With American Telephone
CHICAGO, 111.—John F. Sam¬
against Russia. We can get to them the like.
None of it ever gets
ples has been added to the staff having broken the log jam,
much faster than they can get to back to this
country in the form of
Glore, Forgan & Co., 135 South telephone
us even with their vaunted inter¬
of hard dollars.
company stock
La Salle Street, members of the
continental missiles.
Our
Congressional junketeers New York and Midwest Stock splits were getting somewhat
It is claimed we have to
give get some of it. When they make a
general.
Latest to vote a
Exchanges.
economic as well as
military aid trip to these countries they jam
7-to-l
division
was
Pacific
to these nations to take
up the their pockets with the soft cur¬
gap in the economy which our rency, even bring some of it back
Telephone which, in the proc¬
Now With A. C. Allyn
military takes up.
for souvenirs.
ess, was a wide price gainer
(Special to The Financial Chronicle)
But the plain fact is that 62%
OMAHA, Neb.—John Dimitroff and forged to a new peak on
of this defense support aid
goes
has become associated with A. C. unusual volume for this issue
to
Korea,
'Formosa,
Vietnam,
Allyn and Company, Incorporated, so
Pakistan and Turkey.
tightly held by AT&T.
Farnam
Building.
He was for¬
We don't
have
any
bases in
merly with Harris, Upham & Co.
Vietnam and Turkey. In Laos we
New Split Candidate
Merritt, Vickers, Inc. has been
are giving so much
outright eco¬ formed with offices at 37 Wall
New
nomic
aid
that ■ it
England Telephone,
exceeds
the Street, New York
With John L. Eisner
City, to engage
country's national-budget.
also largely owned by AT&T,
in a securities business.
Officers
*as'

enough oil followers

oils,

Alkow, President of urgent sellers,
volume hold¬
Senator Fulbright, Chairman of Alkow & Co., Inc., 40 Exchange
ing to a low level not seen
the
Senate
Foreign
Relations Place, members of the New York,
since the doldrums of last
Committee, on the other hand, is American, and Pacific Coast Stock
demanding a five year program of Exchanges, is leaving for Israel August
when the vacation
$1 billion a year for the Develop¬ where he contemplates discussing season cut
heavily into trad¬
ment Loan Fund. Mr. Eisenhower with the government authorities
only asked for $700,000,000 for this the possibilities of opening the ing activity.
year for the "bank."
The House first office of a member firm,
Encouraging Business News !
has approved the mutual security which may be of great service to
bill pretty much in the form Mr. the many foreign residents and
The general run of business
Eisenhower asked for it although tourists in Israel who are vitally
news was
heartening but not
they juggled the figures around to interested in the various American
to the market generally
provide more for economic aid stock exchanges.
and less for military aid.
which seemed to prefer to ex¬
tee

The explanation was that these
foreign bases kept Russia that
much farther away from us and

brought

of directors of The Magna¬
Mr. McDonnell will re-°

Co.

Alkow

He is in the forefront of the inter¬

clothe it in new language. Foreign
aid was looked upon as too un¬
to

vox

place, until the next annual stock¬
Senator
Mansfield,
Assistant holders' meeting, Joseph W. Dye,
Democratic leader in the Senate, President of International Trade
is insisting that we put a cut-off
Development, Inc., whose resigna¬
date of three years on these give¬ tion was
accepted by the board
aways. The Senator's stand is sig¬ with regret.
nificant because he by no means
can
be considered an isolationist.

re¬

decided

in 1945.

to go out in the open

is another.

quests.
A few years
ago
the

we are

not

—

BOSTON,

Mass.

—

Ralph

Stuart Jr., has been added to the
staff

Hayden, Stone & Co., 10

Post Office Square.

FOR

SALE

•

of Westheimer and

demand at times but without

Jan. 1, 1929-Dec.

New

31, 1957

Available

immediately in N.

Write

Phone

Edwin L. Beck, c/o

—

CINCINNATI, Ohio —Edwin S.

Walnut

From

Y. C.

REctor 2-9570

Chronicle, 25 Park PL, N. Y. 7

Apfeld has been added to the staff

Motors

(Special to The Financial Chronicle)
,

continues and the
earnings of this supplier to
guished except for American metal and wood-working in¬
Motors which showed good dustries continue to improve.

Westheimer Adds

122-Bound Volumes of the

COMMERCIAL & FINANCIAL CHRONICLE

Street,

York

and

Company, 322

members
Cincinnati

the

Stock

Exchanges.

With

Cruttenden, Podesta

(Special to The Financial Chronicle)

CHICAGO, 111.—Richard J. Krull
has joined the staff of Cruttenden,
Podesta & Co., 209 South La Salle
Street, members of the New York
and Midwest Stock

Exchanges.

were

covery

also undistin¬

Some Rails to the Fore

threatening the peak posted
There were several widelyin the year when its
success
with compact autos favored items in the rails for
was
first being indicated in both above-average yields and
for vigorousearnings re¬
the earnings reports.
bounds as the leverage factor
Oils Depressed
inherent in rails comes into

earlier

There
for the

was

little to account

oil easiness

definitely

new,

that

was

although

play. Fixed
and

down

carloadings

expenses move up

with
reaching" ihe i r

slowly and,

Volume

Number 5858

189

highest level in

The Commercial and Financial

half,

$39,982,000 Issue of

the

Offered to Investors
porated

higher in the
more speculative

even

of the

the

proceeds from the sale of
debentures will be used by

the

Municipality of

Net

Ripley & Co., Incorand The Dominion Se¬
Corporation
are
joint

curities

Toronto

finance

Metropolitan
the

costs

managers
of
an
underwriting roads and sewers, schools, waterhow- syndicate which on June 24 of- works, local improvements, parks
ever
rpilo havp
littlp fered
an
lssue
of $39*982,000
ever, rails nave shown little debentures of The Municipality of and recreations, housing, home for

case

carriers.

Marketwise,

•

• x

premiums thereafter, plus accrued
Interest in each case. The instalment debentures are non-callable.
The
Municipality
of
Metropolitan Toronto was incorporated
under Ontario statutes enacted in
1953

United States currency.

Harriman

...

and

June

Toronto Debentures

Rio Grande and Great Northem,

yield 5.125%; $142,000 mature
1, 1984 and yield 5.175%,
and $340,000 mature June 1, 1989
and yield 5.175%.
.
Principal of and interest on the
debentures
will be payable in

and

than a
profit
should expand rapidly this
year. Returns of 5 to
were common even in quality
items like Santa Fe, C. & O.,
and

year

(2857)

Chronicle

the

following. The Metropolitan Toronto (Province the aged, parking authority, misbright hope
nope here (is
,is that;
that in of Ontario, Canada). The offering cellaneous projects «»u
and for varivex.time the high yields will at- consists of $6,759,000 of instal- °usot;h®[ PPP0^3debentures
frnof
ment debentures, oated June 1,
Ane smmng iuna aeoeniurts
iract attention When tne conand maturing June 1, 1960 will be callable on and after June
stantly higher prices of the through 1974, priced to yield from ^ 4974^ at the option of the
premiere "growth" issues 4.125% to
^10%' 9Qnnnd"fS
Municipality of Metropolitan
bump into a stalemate and
^k^ng^fund
debentures, ofwhich Toronto, at an initial redemption
that play runs out of steam.
$32,741,000 are due June 1, 1979 price of 103% and at declining

sustained

financial

and

other

pur¬

The City of Toronto is the

focal

point

area

which

covers

"approximately 240

square

miles,
•.

James H. Orr, President of Colonial Energy Shares, Inc., (Boston, Mass.) formerly named Gas
Industries Fund, Inc., has announced

and

has

the
a

population

the

appointment

Charles H. Stockton
of

Boston

from

the

& Stewart, legal- counsel for the
Fund,
is also a director of American
Electric Power
Co.,
TTlPrt+nn r Daiitai* P/\

Boston

Mr. Wilson is a director

of Min¬

Edison Co. and United Fruit Co.

Weingarten Admits

neapolis-Honeywell Regulator Co.

On July 1, Weingarten & Co., and the Second Bank-State Street
w

„

551 Fifth Avenue, New York City, Trust Co., Boston. He was founder

members of the New York Stock and President of Doelcam Corp.9

Exchange, will admit Lew Sonn which was later acquired by Minto partnership.
neapolis-Honeywell.
■■

hauling activities
St.

Sea¬

Lawrence

way is Rock Island—Chicago,
Rock Island & Pacific—whose

fell to

of their

less

half

than

1955

peak value last
year,
but then perked up
when the heavy crop traffic
last year saved the line from
the larger earnings declines
reported by roads more de¬
pendent on industrial traffic.
The big boost from crop haul¬
ing will not be available this
year since indications are crop

must serve well to prosper

We must

prosper

to serve well

movements will be down. But

Island

Rock

has made good
lessening its crop
dependence and in„ the more
normal year of 1957 received
nearly half of its revenues
strides

Tie function "of the telephone busi-*
-

ness

from manufactured and other

items, so it will par¬
ticipate in the improved
freight picture this year. The
freight picture will also bene¬
the

when

Seaway's

Rock Island

dividend

begin

in- all,

candidate for

mean

most

current

price.;..v

ways we
:

investors,

but

little

shown

and offers

that

one

has

investor interest

measure

40-50 price

range

from 1947 to 1956 and

since

then

has

bit

range a

enlarged its
the downside

by slipping to around 35 in
the last two years,

while this

it approached 60 for the

first time since 1946.

Consid¬

ering the gyrations of the
eral market

static.

The

gen¬

in all that time,

the issue has been

definitely

outlook is

good-

foreign dividends expected to
a

third

domestic
up.

higher this

operations

Its return is

satisfactory 412'
fThe
article
time

views
do

not

coincide

those

couple of

years

but

than almost

any y

long-term business. Al¬

must keep building

ahead

handle the needs of the country. ,-r
needs

arc

growing every

day.

Just the gain in population

alone

gives

some

idea of their size.

By 1970 there will be 40,000,000
more

required

by people, industry and defense.
Such progress can

come

only if

there is reasonable freedom for busi¬
and the encouragement to go

full steam ahead that

comes

with

those
are

any

the

presented

of the author only.]

mite
Bell

make your service ever broader and better. (Solid lines
underseas cables. Heavy dotted line is new cable now being laid to Europe.)

show present

mean

ing,

in research,

arc an

important factor in the
of the country as

over-all economy
well

phone

jobs and purchas¬

in the best interests

of tele¬

users.

good earnings. The benefits are

widespread.

If
of

earnings

the

arc

less than the needs

task, and all energies and

judgment must be devoted to meet¬
There is ever-increasing

evidence

good earnings for the tele¬

phone company, with all that they

ing the pressing needs of
ment, it becomes
the best

There is, indeed, no

idea that the

the mo¬

impossible to do

job for everyone.

BELL

TELEPHONE

sure way

basis for the
to low tele¬

phone rates is to keep the company's
earnings as low as possible.
Such

from

this

System keeps opening new fields to

philosophy, by limiting

re¬

search, efficiencies and the econ¬
omics of

long-term building, would

lead almost

precisely to the opposite

result... poorer

service at

higher

price than you would otherwise have
to pay.

picking

Far

U. S. satellites derive their radio voices from the Transistor, the mighty
of electronics invented at Bell Laboratories.
It's through such pioneering that the
outer space,

year,

necessarily at

communications.

communications

service and services will be

that

great advances ,in

telephone overseas as clearly as across town.

Submarine cables enable you to

people in the United States.

More and

ness

UNDER THE SEAS AND INTO THE SKIES are two

thoroughly

expressed

"ChronicleThey
as

fo^: six months

return

generous

roughly in

run

mean

among

neglect is that the issue

year

Those

name

Woolworth. A

held

surely

Neglected Issue ■"

the

other, is

al¬

■

year or a

to serve well.

continuing basis. For the telephone

business,

the shares at the

A well-known

return

We must serve

And just

must prosper

or a

improvement

This doesn't

this
year and even a moderate im¬
provement to $2 a share—it
paid $2.70 in 1957 and 1956—

-would

public and serve

It works two ways.

makes

" "

well to prosper.

Lawrence

benefits

All

accrue.

St.

the

serve

it well.

than crop

fit

is to

board.

partner of the
law firm of Choate, Hall

Stockton,

One of the rails in line to

benefit

director

member of the advisory

Mr.

eon

000

as a

the Fund and John J. Wilson

as a

about 1,429

„

poses.

--.y-

provided
for
the
municipalities in
Toronto Metropolitan area for

certain

Nam#**] Dir^rtnrc

nameQ W™*™*

which

federation of

SYSTEM

The Commercial and Financial Chronicle

European Trade Areas and
A New Competitive Threat

Thursday, June 25, 1959

Volume

Number 5858

189

The Commercial and

in to excesses if not watched with
It does, however, serve
where caution.
to lay
the groundwork for the
higher industrial prices have more
than offset declines in prices of next step—broadened activity in
farm
products
and
processed capital goods lines. Evidence is on
foods.
With a seasonal rise in hand that this is getting under
food costs expected in the next way, although at a modest pace.
Halsey, Stuart & Co., Inc. heads
With the problems
of recession
few months, a moderate upturn
them, businessmen will a group of underwriters which on
in the over-all indexes may re¬ behind
June
23 offered $20,000,000 North¬
sult.
At the same time, the deli¬ now need to be alert to the prob¬
ern
Illinois Gas Company First
cate
balance
of recent months lems of prosperity—pressures on
Mortgage Bonds, 5% .Series due
points up the need for greater prices, temptation toward excesses
1, 1984, at 100.712%
and
of inventories or credit use, and June
vigilance
against inflation and
the eroding of the efficiencies and accrued interest. The group was
any
government,
business,
or
awarded the bonds on its bid of
union policies which will exert cost reductions introduced during
tendencies have been apparent

discretion, the unemployment sta¬
tistics

Bonds Marketed by

"Some say that 'frictional' un¬
employment need be no greater
than, say, 2,000,000.
Of course
everyone likes to have plenty of
jobs available. One of our statis¬
tical! deficiencies is absence of
on job openings which in fact
always exist in some dimensions.

around

been
down

below 3 million many

short-handed for
sufficient qualified appli¬

employers
lack of

are

further upward pressure on

In such circumstances em¬

cants.

offers and

tionary

prices.

broadening scope
are off on an infla¬
of rising activity and the confi¬
- price
merry - go- dence and optimism pervading the

competitively raise wage !'

ployers

"The steadily

the recession."

99.9599%.-

;

■

Proceeds

from

the

\-0-

sale off the

be applied to retire
a maximum of $5,000,000 of bank
Calif.— loans and to increase working

E. A. Hunter Co. Formed

bonds

prices ranging from 105.72% to
100%; for sinking fund purposes
they may be retired, beginning
on Dec. 1, 1961, at prices ranging
from 100.69% to 100%, plus ac¬

Halsey, Stuart Group

data

The general experience has
that when unemployment is

Northern III. Gas Co.

wholesale price index,

the

affected.

are

(2859)

Financial Chronicle

will

crued

interest

Northern

in each

Illinois

case.

Co.

Gas

ac¬

quired in 1954 all of the gas util¬
ity properties of Commonwealth
Edison Co. It is engaged prin¬
cipally

supplying

communities
located
of the

and

Cook

gas

in 277

adjacent areas
County outside

City of Chicago and in 19

Illinois.
approximates 10,000
miles in area and has an

other counties in northern
The territory
square

estimated population of

2,400,000.

SANTA BARBARA,
Opens Inv. Office
reports augur well Eugene A. Hunter is engaging in
capital for application to con¬
expansion.
Prosperity a securities business from offices struction purposes.
Angie Barnes is conducting a
!
New Production Records
built on inventory accumulation— at 14 West Figueroa Street under
securities business from offices
The bonds will be redeemable
>
"From all indications, general a major factor in the current up¬ the firm name of E. A. Hunter &
at 60 John Street, New York City.
at the option of the company at
Co.
•;<
business activity is entering
surge—is transitory and may lead
new
high ground in the second
quarter.
Industrial
production,
according to the Federal Reserve
index (seasonally adjusted, 1947As a result, safety is not a passive thing at Cyanamid
49=100), set a record of 149 in
Continual emphasis on safety and training in safety
April, two points above March
but a dynamic factor contributing increasingly to both
practices have helped Cyanamid achieve one of .the
and 18% higher than at the low
employee morale and operating efficiency.
highest on-the-job safety records in the chemical field
point of the recession a year ear¬
lier. Durable goods output in April
which, itself, has established an enviable safety
was 25% greater than a year ear¬
record among all industries. One plant, for example,
lier and within one point of its
has operated for the past sixteen years—since 1943—
December 1956 peak. .Continued
without a single disabling injury! And because more
pressure for buildup of steel in¬
wage

latest business

round.

future

for

—

ventories has been

major factor

accidents ocqiir away

but the April
figure also reflected a record out¬
put of building materials,
increased demand for industrial ma¬
chinery and trucks, and expanded /
output of consumer durable goods
—automobiles, furniture, and tele¬
recent rise,

the

...

vision sets.

automobile

"The

industry

has

experienced the most encouraging
spring sales pickup since its bonanzo
year of 1955. Dealers sold
504,000 domestic cars in April,
the largest monthly total
since
June
1957, and reports for the
first 20 days of May show further

;

; v

•
Sales of imported cars
jumped to 50,000 a month.
Industry experts are increasingly
confident that, with the stimulus
of new 'compact' models to be
introduced in the fourth quarter,
the forecast of 6 million domestic

gains.
have

imported

and

car

sales

1959

Deal¬
to
climb and on. May 1, according to
Ward's Automotive Reports, they
exceeded 1 million for the first

will be reached or exceeded.

stocks

ers'

continued

have

history, including about
100,000 imported cars. Neverthein

time

production schedules> have
remained, high, partly as a pre¬
caution against a steel strike, but
mainly because of favorable sales.

•

less,

"Although production of non-:
durable goods has risen less rapid¬
.

ly than that of durables, the non- :
durable goods index has regularly :

set new records since last August.
Textiles are having the best pro-

duction

year

since

1950,

with mills reporting forward

ing into 1960, and the
dustry is setting new
ords.:-." *' *;■ !.-•
'

Consumers

"
..

with
buy¬

apparel in-" r
output rec- - "
s r
• •':
*

Spending

Confidently:

;

"Consumers, while discriminat¬
ing, have . been spending more;
freely. Retail sales in April were
at a high of $18.0 billion (season- '
;

ally, adjusted), up

preceding

year.

9% from the.
Sales of auto-,

mobiles and other hard

goods have

figured largely in the advance in.;
recent months.
Instalment credit
is

being

consumer

drawn on more freely;
instalment credit out-^

standing rose over $1

billion, sea¬
first quar¬

sonally adjusted, in the
ter.

price index has
within a range of
0.2% for the past 10 months, the
"The

held

consumer

steady

of stability since
started in 1913,
according to Labor Department
officials.
A closer look at the
components shows that the stabil¬
ity has rested on counteracting
movements. A drop of 3.4% since

longest
the

period

index

was

July 1958 in food prices has offset
increases
in
other commodities
and
services.
Similar offsetting

from work than on the job,

Cyanamid also encourages off-the-job safety con¬
sciousness
in travel, recreation, home activities.

AMERICAN CYANAMID
SO

COMPANY/

Rockafallar Plaza, Naw York

20, N.

Y»J

(2860)

The Commercial and Financial Chronicle

President
elected

News/ About Banks

the

who died
Fresident

NEW

BRANCHES

NEW

OFFICERS, ETC.

Bankers

and

REVISED

elected

and

Vice-President

elected

quired

C.
Alexander,

tlie

had

the

;

Bank's

the

authorized

first branch

lished in the

<Mr. Horn is

young
Astor
Place
after branch banking

soon

been

Bank—ac¬

by the 1893
New York State Legislature. Thus,

Board.

Exchange

the

Bank,

Henry

ago, in 1899,
Chemical's predeces¬
years

one

sors—Corn

anty Trust Company of New York,
It was
announced
June
22
by

Chairman

was

that

Guar¬

Morgan

bank

estab¬

was

state.

made

personal trust
administra¬

short block west to the northeast

tion group. He

corner

employed
in 1944 by the
personal trust
department of
was

Co.

Morgan
pointed
In

1944

John
-

York

Trust

James

elected

trust

appointed

Brooks
He

Co.

correspondent

maintain

Hinton

banking

available

Mr.

Jehn, forAssistant Treasurer, is
to
Morgan Guaranty's

department.

the

executive

Board

staff

and

18.

City,

William

with

the

succeeds

the

**•

Bank's

joined
Hin¬

Mr.

Rockefeller

services

the

will

8th

new

Street

The

in*

auditor

1935

and"' Assistant

Secretary in 1936. In 1941 he left
the Franklin Savings Bank to be¬
executive

come

secretary

the

Savings Banks Association- of the
State

which

New

York,

position
coming to
Sayings Bank in

held

Dime

January

until

1950.

John
the

Emigrant

appointed
•'*

Company,
nounced

New

Everett J.
The

Carl

Vice-

York,

Horace

Chairman of the Board.
Mr. Carlson joined the Bank in
1932. He is with the National De¬

partment and services business in

the

Bank's

from

Directors

the

proved

transfer

undivided

Brooklyn,

Bank

June

announced

a meeting of the Board
Trustees, James MacGeorge had

elected

Bank

manager

Assistant

ail

the

and

the

Branch, 86th
Brooklyn.

St.

Secre¬

appointed

Bensonhurst

and

19th

Ave.,

Mr.

MacGeorge joined the staff
of
The Dime Savings
Bank of
Brooklyn on Dec. 29, 1926. He
in

served

including

various

chief
of

capacities

clerk
the

chief

and

main

office

and

Bank.

elected Assistant Treasurers.
Bank's investments de¬

the

Bank's

Hill

Bank

Office

ment officers

following

were

K. deVeer, Arthur

invest¬

The

Ilanover Bank,

June

named: Robert

Berlin, Sidney

eham, Jr.

and

W. Jefferson, Jr., Louis
Lustenberger, William E. Reid,
Martin J.

Phillips,

Jr.,

George

were

division.

Harry

Kondourajian

was
elected an Assistant Trust
Officer in personal trust adminis¬

tration. Dean W. Egly

was elected
Assistant Secretary in the cor¬
porate trust and stock transfer

division.
*

The First National
City Bank of
New

York

announced

June 29 its Chelsea
at 23rd Street and

that

Branch,

now

Seventh Ave.,
business in new
modern quarters at
23rd Street
and Avenue of the
Americas.
will

for

open

The main
on

the

banking floor

street

level

will be

new

apartment building which has
just
been completed.
John J. Buyer,
manager of the

relocated branch,
First National

has

been

City for 28

Mr.

Buyer

manager

years.

the

branch at its present
location and
is well acquainted
with the Chelcea

Louis A. Hollander and

area.

Walter

Felsen, assistant

Mr; Buyer's 'staff,

With him to the nfew

Hollander

and Mr.

combined total
First National
spent

managers

.will

move.

location.

M**

Felsen have
50

years

with

The oldest branch
office in the
York State bank¬

history of New

ing was transferred to a new
location on
Monday, June 22, by
Chemical Corn
Exchange

Bank,
New York, it was
announced by
Harold H. Helm, Chairman.

Trust

Coppers,

Director

nounced

Moore,

June

has

Chairman

Frederick
dent

pany,

from

Assistant

Vice-President; James H.

1931.

dore

Butler

from

Assistant

from

Executive

sistant

Savings Bank, New York.
:2s

Adrian M.
Massie, Chairman
the Board and Hulbert S.

ten

the

Aldrich,

President of The New York Trust
Company have announced the fol¬

lowing

promotions

which

approved at a recent
meeting
the Board of
Directors:

John

O'Connell,

Secretary
has
been
to Vice-President
and
Austen

formerly
promoted
•

Secretary.

Gray, formerly Asr
Vice-President has been

sistant

promoted
is

52nd

Vice-President.

charge of the Bank's
St.

and

office

the

Reno, Jr., has been
Assistant Secretary in
the
Investment
Department
of
Personal Trust Division.
Brown

proval

York,
the

Harriman

given

was

Branch

New

York

State

to increase
its permanent
capital from $2,000-,
000 to

$4,000,000.

A
of

The

trustees

same

Union

the
Dime

Bank, New York held
Walter
R.

Williams,

board

Savings
June 17,

Jr.,

Vice-

$25

each

260,369
value.

par

First

National

Bank

Wolcott, N. Y. into Security Trust
Company
of
Rochester,
N.
Y.
under

the

title

"Security Trust
Company jof Rochester" has been

filed

with

the

New

Yx>rk

State

Banking Department.
&

the

•

regular

land-Atlas

National

Bank

Boston, Mass. held June 16, Rob¬
ert E. Munroe, who became as¬
sociated

with

the

tors.
H.

1948,
of

':•»

town,

Pa.

ceeds

elected

Company, Norris-

Anderson, former
Vice-President,
suc¬

the

late

Melvin

Anacostia

National

increased

its

1923

Vice-Presi¬

was

the

Bank

capital

common

stock from $600,000 to $800,000 by
sale of new stock effective June

Edwin

pointed
at

Board

elected
of

Assistant

has

been

ap¬

Vice-President

the

Board

Directors of The Michigan Bank,
Detroit, Mich., according to John
C. Hay, President.

He will function
of

Coordinator

Branch

Activity in the Opera¬
Department of the Bank.

tions

Mr.

Jones,

has

been

with

bank since 1957 and

was

Manager

this

prior

the

Branch

appoint-,

ment.

The

Fourth

Wichita,
War

National

Kansas,
Brooks

their

Bank

announces

that

associated

row

Trust

Department as
Vice-President and securities an¬
alyst.
•
,.77 *
7
' '
;

'•

■>.-

si:

' \ $

Limeston
Merchants

Bank,

•

Elkmont,

the

Maine,

iffice

San

Fran¬

Smith

the

Bank

continue

will

Board

direc¬

his

hold

and

Council

Advisory

America's

President

announced by

was

Clark

Retirement

Beise.

the

for

cisco born banker

|
Fran¬

San

after 47

comes

years,in the banking profession,
with

Bank

where

America

named

was

1939.

Following

European trip in
of
America

with

1945

Vice-

Executive

President in

Bank

Founder A. P.

Giannini, Mr. Smith
and de¬
overseas
branch and

selected

was

to organize

the
representative
velop

offices

program

and named in charge of

the bank's

international

time,

overseas

that

activities.

had one
London,

of America
branch,
in

Bank

England.
,

si:

The

Trust

•

First

Western

and

Bank

San

Company,

Francisc^,
Calif., has elected Francis S. Baer

Chairman of its board of directors,

was

announced

McMillen,

June 18. M.

chairman,

former

Chief

President and

continues

Executive

Officer. Mr. Baer was
Chairman of the Ex¬

formerly

ecutive Committee of the Bankers
Trast

Company,

remained

ber

the

committees.

New

but

York,

Director and mem¬

executive

trust

and

resigning from

these activities to take up

his new

National

Form Cons. Investors

stock

Bank

Lake

MERRICK, N. Y. — Isadore J.
Lefer is conducting a securities
from

offices

224

Lincoln Boulevard under the firm'
name

Consolidated

Corporation.

Investors
■

the

Vice-President of the

National

will

at the

month

"77'7

business

capital

Hagemann, * Jr., Charles, Louisiana, has been in¬
Bank, also an¬ creased from $300,000 to $600,000
that Wintnrop B. Walker, by a stock dividend effective June
of

head

Directors

common

Gulf

this

retires

fi¬

international

torates in the Bank's international

Ala¬

under charter and
Limestone County Bank.
V

The

international bank-;
a world figure

field

County 7 Bank,

■«

bama, merged
title

Bank

duties.
e

Athens, Alabama, and Farmers

Direc¬

Jones

meeting

lending

he served in many posts including
Vice-President and
Cashier. He

Carl.

Washington, District of Columbia,
has

Montgomery County

Mr.

Executive

Smith,

subsidiaries, it

was

Frederick

Canal

President

Atlas

Bank

appointed

was

dent.

15,

Bank and Trust

with

meeting of the
of Directors of the Rock-

nounced

plan providing for the merger

presently

meeting

State

sj:
a

As¬

the

Mr.

?77;:7:j ■ 77'*777

Gerald M. Anderson
President

cisco.

Office

10, (Number of shares outstanding
—8,000 shares, par value $100).

consisting

shares of the

ap-' •member

Banking Department

York

Brothers

New

of *243.369 shares

$6,509,225

and

Co.,

Soergel,

Assistant

value

par

Board

Edward J.

appointed

New

Madison Ave.

Assistant
L.

Banking
Department has given approval
to the Security Trust
Company of
Rochester, New York to increase
its capital stock from
$6,209,225

were

Mellon
years

in
September
appointed Assistant

senior

several

charge of

and

was

The

consisting
of

Secretary.
if

Mr. Coppers also serves as a
Director / of:
Citizens
National
Bank, Englewood, N. J. He also
acts as a trustee of: Greenwich

Administra¬

Squir¬

member

year

America executive Vice-President

transferred to
1953

ing activities and

For

Cashier. '7-

his

1955

been

was

Department

coming

officer positions in southern Cal¬
ifornia branches and at the Los

all

1941

Pinck-

Secretary to
Vice-President:, Theo¬

Secretary; and Gerald

Bank's

an¬

included

Bank's

his

assume

with Bank of America had

career

phases 'of banking
assigned to the
Auditing Division. In 1951 he was

worked

Sacramento

nance,

and

will

Prior

Angeles headquarters of the Bank.

from Assistant

tive

the

Y.,

Royce moved
Vice-President to

Bankers

William

Com¬

month.

Presi¬

Guy M.

men.

Board.

was

an¬

Jr.,

Trust

nounced June 23 the promotion of

four

Assistant

been

Hainfeld,

Long Island
Garden City,

this

'
came

ney,

/.i\

Co., New York

City, many of them
the Chelsea area"
*

elected

with

Schwab.

elected investment research
officers in the corporate research

ap¬

Floyd

Jacob M. Cath, Charles E. Phil¬
James

the

members

new

its branch advisory committee:

and

New York,

announced

pointment of four

I31axill, Eliot C. Clarke R. Bruce
Underwood, and James H. Wicker-

lips

;

McCarthy

Mr.

Russell

Adams

As¬

Trust

nas

appointed manager of the
Mr.

named

was

executive duties in San Francisco

Herbert W. Adams also
rel

Office

World War II.

named estate admin¬

the

'7v.- v....,"

joined
Bank
of
America. im¬
mediately following his discharge
from the U. S. Navy at the close

Com¬

Department.

the

Trust

Schurr, joined Mellon Bank
was employed in var¬
ious divisions of'the bank, and in
February of 1950 he was appoint¬
ed trust administrator. In May of
was

the

sistant Vice-President in 1958. He

in 1927. He

Office =;of

ing his transfer to the Bakersfield

1952 he

Main

7;7;- *

Main

Mr.

istrator

Vice-President

branch in Bakersfield and follow¬

by Frank R.
Vice-Chairman
of
the

Denton,

posts. For two years he was man¬
ager of the Bakerslield-Hillcrest

capital and

announcement

McCarthy

••

several administrative and branch

Pittsburgh, Pa., according to

pany,

•'

Bank

Mr.

During his years with Bank of
America, Mr. Larkin has filled

;The Philadelphia National will
have $53,521,875 in its sur¬
plus account, which, when added
to its capital of.
$26,478,125, in¬

National

23 that at

has

Bank.

now

pointed Assistant Secretary in the
Trust
Department
of
Mellon

Real
the

Assistant

combined

adminis¬

Bank's

;

in San Francisco. 7

Bakersfield

its

surplus account.

the

the Capitol office is
Kenneth V. Larkin, formerly an

ap¬

senior

department

Succeeding

manager

$5,000,000

profits

were

have

that

announced

JWhite,

downtown

Loan

Office

Head

Howard W. Schurr has been ap¬

Idaho, Illinois, Montana, Utah and
banking department. In November
Wyoming.
'
: ■;
of 1955, Mr.
MacGeorge was ap¬
Appointed Assistant Secretary
office and all three
pointed assistant manager of the
of the branch at 149
midtown offices. *
•
Broadway is
Bensonhurst
Branch
and had been
Elizabeth McBride, and to Assist¬
In the general
banking division,
manager
of that 'branch
ant Branch Manager of West 43rd acting
Edgar O. Crossman II, Carl W.
since last December.
Timpson, Jr., and James T. Wallis St., Anthony Carrano.
.

\ j

York

Assistant

Savings

supervisor

V-

named

and

trative l post; in

1 Estate"

Indus¬

an¬

Flanigan,

'i„.

■

Philadelphia Pa.

' creases

Livesey, President of

Dime

been

President of Manufacturers Trust
-

;

—

tary of

Center Office. He joined
Guaranty
In 1946; and has served at the

partment

Thomas,
Treasurer,

Madden," Chairman of surplus * to $80,000,000.

Board

Vice-President.

Assistant

C. E. McCarthy, manager of
the Capitol Office since 1955, has
been advanced to Vice-President

late" Karl

V;V
■

by President S. Clark
v7v•
'"'7
'

Beise.

- Savings
-Frederic A. Potts, President of
-Bank,
New
in 1932 where he was*made* The Philadelphia National Bank,.

appointment

Carlson

Jr.

'777^:"77 J>v7->-t-y77'.

at i its

announced

and

Calif.,

Capitol Office in Sacramento were

has

elected to the Board of Man-»

agers.

became associated

Neumann

Vice-President
was

Bank of Ameri¬

Francisco,

San

for

was announced June

Schwotzer. " William

elected

was

Institution

Jersey

President, it

1950

1.951

Promotions
•

ca,

Savings,

chief

and

**•

Provident

The

capital of $250,000 and
a
surplus of $150,000. The Presi¬
dent
is
Don
Carney
and
the
Cashier Russell C. Wright.

officer.

■■

The

Colorado.

County,

ferson

Bank has

will

Franklin

banks

50,000

and Broadway Office.

Assistant

than

offices abroad. Chemical's world¬
wide

joined
-

foreign

which

was

1951.

Guaranty Trust in 1928.
ton

Trustee.

and

Assistant Trust

Vice-Presidents.

credit

Jan.

year

the metropolitan area, correspond¬
banks throughout the nation

Other advancements announced
Include election of George I. Jehn

merly an
assigned

April of that

ent

Officer in 1955.

Walker

Dime

Treasurer. In January
became
Vice-President,
as

largest bank in New trial Savings Bank, New
City in point of total de¬ ahnouriced that
William R.
posits. It has 94 banking offices in has been

form

Officer

officer'.

Morgan &

end

man

elected

the

Trust- York

He was ap¬
Assistant Trust Officer

tration,

V/as

Union

joined

National

Conn,

on
or
about July 1, ac¬
cording to Joseph H. Allen, Chair¬

Williams

is the fourth

Guaranty

Also in personal- trust adminis¬
a

Mr.

Scally, Union

Chemical Corn Exchange Bank,
was founded in
1824, today

Horn
-

1951.

J. P.

which
-

New

and

Patrick

are

Haven,

Millord

and

;

New

another banking location in

open

was

post

First New Haven

Bank,

Guaranty.
an

additional

Vice-President

O'Connor, Assistant Manager.

with
of

him

Assistant Secretary, and Dennis P.

last

24
Company

Broad¬

and

,777::' :;£

with

which

April

Street

;7y7
Karl Pons, Vice-President is
in charge of this office. Associated

New

York

8th

Incor¬

merged

way.

Morgan

porated,

York

From its original site, the Astor
Place
branch is being moved a

The

was

Bank

Secretary,

the

Treasurer.

been

has

the

Wilbur Lewis,

and

was

Horn

recording secretary of the board;
Ross D. Hill, Vice-President,

CAPITALIZATIONS

John

Treasurer,

late

on May 20. At the same
John M. Robert, Vice-

meeting

CONSOLIDATIONS

and

President

succeed

Thursday, June 25, 1959

Bank,

join

National

the

Bank

Portland,

10.

(Number of shares

ing—60,000 shares,
if

Rockland-

August
Executive Vice-President.
on

the

charter
Lakeside

has

par

outstand¬

value $10).

Now First Mid-America

CHICAGO, 111.—The firm name1
of

Mid-America

Securities

Com¬

been

National

issued

Bank, Jef¬

pany, 176 West Adams Street, has
been changed to First Mid-Amer¬
ica Securities Group.

i
'

Volume

189

Number

5858

The Commercial and Financial Chronicle

the-relative

Continued from page 3 -j

certain

analysis

camparative

growth:

Analyzing
T

■

Comparative

no-

mac^e

went

1960

age

groups

•

that

are

defense

V!f

by states, by
That

regions.

ag?'

broad
is

aids in the missile business; a 25%
increase for ground support in

increase

the

missile

supplementary,,

nents,

use

of missiles.

compo-

auxiliary

Then,

20%

inrease in each of the three fol-

lowing categories: The submarine
as an implement for nuclear war-

into

some

detail

budget would show the
percentage
increase
in

over

1959, fiscal years.

Jure

The

expendifor the guided missile pro-

case.

;

nautics;
and
finally,
atomic
research and development—a 20%
increase.
*
•'

Importance of Defense Budget
There are the ten top percentincreases
in
the
defense
biidget, 1960 over 1959. Although
age

The

ceding year, I
light on

budget

Top Ten Growth Areas of Defense

(Fiscal 1960 Over Fiscal 1959)

think that they
trend that is
likely .to prevail for a number
of years to come, not necessarily
for ten years because there may
shed

V
50%
50%

40%
40%

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)

Tracking and Warning Devices
Missiles Ground Handling Equipment-Electronics and Communication
Command Control and Warning.-

About
About
About
About

Missile Components
Missiles

few

years

About 25%

Year

this

top

Space

Year
Year
Year

tures

(9)

About 25%
About 20%
About 20%

Year
Year
Year
Year

About 30% a Year
:

—

Missiles Ground Support Equipment--Submarine Expenditures

Exploration Development

(10) Atomic Research and Development

a
a

furfther

cal

scientific

changes.^As far

—

very

defense

culation to have available and one
'

Continued

Abo£it20% a Year

mzm

My Number Two tool is science

NEWS

PROGRESS

ON TEXACO

research, and here I have in
mind not only the ordinary con¬
cept of research and development
in American industry, which has
reached
around

very

large

$10 billion

a year,

the fact that

figure,
but also

Two views of

have entered the

7:tv;

of science. Science exnot only from the stand¬

space

age

pands

point of military matters but also
from

the

tual

standpoint of the

impact

of these

even-

phases

new

of space age science on all forms'"*-:*./
of American industry. Science and
research
is
my
Number .Two t v

criterion.

My Number Three tool has been.
one
that perhaps some will not,

think is too appropriate. It is pureeconomic
theory. I am not

ashamed

admit

economist.

use

theory

pure

not

YESTERDAY. Texaco's first refinery at Port

ashamed

in 1902 to turn the black crude oil

into useful

analytical

for

kind.

this

purposes

that

Arthur came into being

newly discovered in quantity —

products for mankind. Produced in simple

products were kerosine,

While

—

economic theory

pure

found,

keep
cop^

for

are

purposes

•

at all times a
Principles of Economics," by Alfred Marshall. For '
my money, that is the "Bible" on
pure economic theory and when¬
ever
I come up against a tough
problem and I- cannot see the
answer, I
re-read some part of
"The Principles of Economics" by
Marshall and
invariably I find
from that
a
lead, a solution, a
method of* approach that is im¬
desk

"The

mensely helpful. You cannot ex¬
pect to analyze the growth of
various industries without making
constant

use

✓

pure -

theory.
v

economic

And, Number Four—my respect
Now,

for history comes into play.

history

can

different

ways

studied
but for

many

pur/-

today I should like to make
points about the use of his¬

poses
two

tory in studying future growth:
Marked

Changes

Growth

Rate

The first point is that there are

indusrties

many

that

had

have

tremendously high rates of growth
in the last 10 years but their rates
of

will be cut in half in

growth
next

the

years." There

are

marked changes between the decade

of the. '50s

the

„J

and the decade of

with

'60s,

respect

of growth.

rates
one

you

these
from "

industry to another, you have
explain to yourself why

to try to

these; changes have occurred.

The second point about the use
history is that there is always
temptation to make a mechani¬
cal projection of a past trend into

{

of
a

the

future.

irend

10 years,

ahead.

there

has

been

certain kind in the last

it is easy to project that

That is

mechanical

pro¬

it is not worth any¬
thing; and none of the conclusions

jection and
that

based

am
on

about

any

give

you

TODAY. At Port Arthur,

mechanical projec¬

United

States,

tions' of that kind.

produce constantly

My Fifth test in analyzing
growth has been the part which
defense
plays in the American

of other

Since the end of World
War II, the variations in defense
have had very strong impacts on
economy.

in the
methods to

and at 11 other major Texaco refineries

ultra-modern chemical wizardry uses many

improved gasolines, perfected lubricants, and a myriad
products are so vastly im¬

petroleum products. Because these

jet planes can fly faster and {
efficiently. And because it has corcj*

.TEXACO
L. CONSTANT

proved, you can drive a more powerful car —
farther

—

industry can operate more

stantly planned ahead, Texaco's

growth has been continuous.

stills, the first

naphtha, asphalt and primitive lubricants..

there may be many different ideas
as to where the greatest authori¬
ties

OIL'S

FIRST

expendi¬

useful bit of cal¬

—

and

techni¬

the next
are concerned, I think

ten in
a

and
as

■

tool in the analysis of growth.

increase for command control in fare; space exploration, techni- those figures relate to a comparithe operation of missiles; and a cally called, I believe, astro- son of only one year with a pre-

guided missiles would be at the
top of the list_ but that ig not

geographical
Number One

35%

I suppose that to many people
it has seemed fairly obvious that

wai}t a
£!f, age
—! groups,
breakdown
of population
and then I want it
^

is a plus 25%, 1960 over
1959; but double that rate is the

budget for

gram

fjn(^ what ten items in the

jng

population,
the
age
is reaching working

that

de-

tain objective, that objective be-

regional distnbu-

highest

the

*°jai population I but

school-age

•

classification in pursuit of a cer-

tion. I want to know the trend of
the
teen-age
population,
the

age,

study

population

age groups and

group

for
that

and

with

out

felt

fense budget for 1960 and for 1959

Growth

start

tracking and warning
the next 10 years unless we had
devices. Likewise, there is a 50%
a
few things straightened out in
increase for the ground handling
our minds about the defense proof guided missiles; and then a
gram and how that might affect
40% increase for electronics and
the future.
communications; and another 40%

Of the Future: Edie
of

growth

and

could not say very much about

Growth Industries
1
tools

rates

industries

(2861)

PROGRESS
CENTURY

page

(2862)

The Commercial and Financial
Chronicle

Continued

from

what

page

anatomy

Growth Industries

most

how

Of the Future: Edie
that is

ready to analyze growth.
Therefore, I summarize the new
defense

table

mix

Unit

Now,

Reduction

another

come

analysis,

Reduction

iike

test

that

Costs.

and

Unit

to make

an arbitrary
"growth industry."
A growth industry is an
industry

definition of

growth

that is able to reduce the unit
cost of production each year. Over

ten-year period, in order to be
a
superior growth industry, that
is, the top third, it is necessary

how

and

attain

can

it,

the

dustry can have a very clear idea
of growth unless he has an idea
as

to the

breakdown of the vari¬

parts of the industry and a
breakdown, similarly, of the vari¬
ous
products made by his own
company.
Each of the industries
ous

this

Science

and

age

and region.

No.

the

energy sales.
That
factor of probably

has

125%
a

percentage

in the next

//..
metal

the

major
quote
in

category,

and

metals
the

and

Theory.

History, without Mechanical
Projection.

only

that

ten

years.

a year

No.

big

which

the actual growth

give

because I

in the last 10

the

that

drug

business,

rating mainly
betting that research

The New Defense Mix.

not

going to do that is not going to
be a superior growth
company.
Now, how do people reduce
costs?
Mainly by capital invest¬
ment and particularly investment
in equipment,
machinery, electric
power

—

durable
I

what

rather

during

the

amount

business

present at this

bought

has

whatever.
of

shocking fact, that

past ten years the
producers'
durable

equipment

rate

shown

expenditure

business

for

American
growth

In constant

dollars, the
by private

producers'

equipment today is
it

producers'

equipment.

would

point

call

durable

than

ten years ago.

was

? say that this is a shocking
thing. I am referring here to the
purchases by private
industry of
producers' durable

equipment, ex¬
pressed in terms of constant dol¬
lars, physical volume.
It is at this particular
crossroad
the economic
challenge or

that

pressure

Russia

into pay, because

comes

offers

ever

challenge what¬

the

consumer side of the
economy. But the impingement of
the Russian
challenge is on

capi¬

tal

investment

one

Russians have

and

equipment,
moving
ahead very,
very rapidly in this
respect, and this at a time when
been

the growth of

American business
of producers'
durable
equipment in constant dollars has
been zero.
•
purchases

Anybody who wants to meet
challenge must wake'

the Russian

to ihe fact

clone

that

continue

cannot
to

have

static growth

picture in business

purchases

producers'

durable

equipment in this
country.
For my
part, I do not believe
we
are
going to have a static
growth picture.
I think we are
going from a decade in the
fifties
when there was no
growth in this
when

?ua new. decade in sixties
there

and very
1

business

ten

zero

trend.

purchases

years,

does

show

growth

and

happen partly
it

real

very

-CerS' durable equipment

the sixties will
trend of 3 or 4%
the

important growth

tnmk

fha

will

rate

year as

think

£hallenSe>
happen it

the
that

result

tool, and
one- and this is

thC ailaton,y

of 0"

additional work
The

Swniv
Sa wiil

n
,

in order
'

inrinof

thought of
0ne pr°duct. That
w86' Usually there
products and
?e «r°wth factor

y of a

paii and
aLi°^2

pans
xn

each

tfiSSl
djfierences
dividual

the

see

one

c'°mpany,

its comP°uent
growth fart™-

those parts.

expIain why

exist.

company

When

these

any

in!

wondering

uses

The front

facilities. The

Republic

area.

suburb of Cleveland,

ment

many

new

research labo¬

building contains administration and laboratory
rear

building is

420 by 160 foot development

This is

occupied by pilot- and laboratory-sized equip¬
capable of turning crude ore or scrap into finished bars

and sheets of tomorrow's still
unavailable steels.

through its plants. It supplements Republic's

beyond the

when plant laboratories need
scope

of their equipment.

building itself demonstrates, in

current

of steel and

new

single gleaming unit,

applications which will undoubt¬

edly become commonplace in the future.

steel

°ften

steclmaking. The

Independence, Ohio,

local efforts and
cooperates

The walls

Component Parts

living example of the beauty and

coordinating hub for the company's

ratories scattered

Must Analyze
Growth in

the

reduce the unknowns in

last
will

proposals

,Ln

Research Center at

challenge

building that is

versatility of steel, Republic is taking giant steps in its efforts

thnr^lfn S® Russian

whLt

against

pS together? "0lUiCal
tET* ,a Seventh

tadusjy.'*

AT REPUBLIC STEEL'S NEW RESEARCH
CENTER

growth

and I think if
will

LEADING THE WAY INTO THE FUTURE OF STEEL

are

Truscon's Vision-Vent® with textured stainless

panels. The panels

are

coated with blue porcelain enamel

which is burnished to reveal

panels

are

pattern of stainless stars. The

separated by strips of bright stainless.

Inside the

building

movable interior

are

such practical applications of steel

walls; prefabricated flush doors; desks,

HEADED BY INTERNATIONALLY FAMED
METALLURGIST... EARLE C. SMITH
Director of the Research

Center is Earle C. Smith, shown at the left
with Peter
Robertson, Republic Steel's vice president in
charge of research and plan¬
ning. Dr. Smith is one of the few Americans to
be
nominated by the Verein

Deutscher
Dr. Smith

Eisenhiittenleute

there are still

house, the Center's

and

steelmaking from

ingeniously combining drawers from Republic's Steel

to AUSWARTIGEN MITGLIED

EHRENHALBER.
hopes to reduce substantially the number of unknowns
in steel-

making, of which

counters, drawing tables of colorful plastic laminated to steel

Kitchens and office files.

this

for the next

Anybody who

superior

for management to be able to cut
the unit cost of
production an

average of 3%

the

aluminum.

nice

growth

the

100%
-

would

growth

very

above

No.

10 is electric

next 10 years. That is

Specified

well

years.

one

top

growth factor but it is not
Industries

ma¬

ten years in the range of 100 to spreads out
over
a
great many 100% club.
No. 9 is residential
200%; that is superior growth.
industries, part of it being mili¬
building ex¬
At the top of the list is guided
tary, part of it being for civilian penditures, and here I am think¬
missiles, with probably a 200%
ing of a comparison of a fairly
expansion, and a fairly close sec¬ purposes but, taking all in all, average or typical
year,
not a
ond to that is office equipment, electronics should have a
growth boom year, not a depression
year,

Research.

Pure Economic

pages.

business

of computers.

have prepared a documentation to
support these conclusions of some

called

years.
will produce new
break-throughs
brings us to a sort of
No. 4 is air
transportation, not in various fields of medicine and
"brass-tacks" stage of the discus¬
referring to the military but to give this industry a very high
sion today. What are the superior
civilian air transportation. It will rate of growth.
growth industries? By "superior be
a
very high growth industry.
No. 8 is plastics, which covers
growth" I mean industries that
And No. 5 is
electronics, which a multitude of items, but is in the
probably will expand in the next

Seven Tools:

Population, by

tremendous amount of work and
with the aid of my colleagues we

sometimes

chinery; an any case including
an increasing interest in the field

Thursday, June 25, 1959

This

the

are

Cost.

I do not want you to think this
was simple an easy.
It involved

Growth

breakdown.

recapitulate, these

Unit

;

300

approached and analyzed

terms

Reduction in

The Anatomy of an Industry.

the

industry is the
essential key.
I do not see
anybody in the chemical in¬

has been

I go from the defense

should

form

the

Cost

question I
of growth
the

preceding page.

good

management

many.

His dream is shared by
Irving White-

assistant director. Whitehouse

art to

is dedicated to

changing

science. "The day will come before too
long,"
he says, "when the
individual steel artist who still adds
this-and-that
a

by ex¬
perience, will give way to scientists who will
duplicate perfection by the ton."

•

.Volume 189 .Number 5858

beginning and

as a

year.

as a

The Commercial and Financial Chronicle

terminal

the comparison

make

starts

a year, somewhere out there
towards the end of the sixties.

(2863)

products, communication
construction.

And, No. 10 is research and de¬
basis, I would think the
dollars expended on residential velopment, including the science
construction
in
constant prices of the space age. This has had re¬
would show an increase of 100% markable growth. I am not sure it
in the decade and that the larger will grow as fast, percentage-wise,

I have wanted to

and

that

part of that increase would come

the past 10, but I think its growth
will be in the top 10% per annum

the

half

second

of the

decade

in the sixties. That is for the

rea¬

that at that time there will be

son

the

years

it has in

club.

I think that when you go into
very sharp rise in the number of
people reaching the age at which the second 10, you have a little
marriage customarily occurs, and different situation* dealing more
With marriage comes family for¬ with segments
of the economy
mation and the need for homes. I than you are with industries, per
a

would say that toward

the

the end of
sixties

the

decade

should expect a

The

se.

second

includes

busi¬

services, engineering serv¬
water and sewerage, state

ness

perfectly terrific
housing boom and I should not be and local government, educational
staggered in the least to think in services,
natural
gas,
medical
ices,

of two millions

terms

of housing

services,

chemicals

and

allied

Conclusions

Well,
late

let

much talk

have

about

the growth
in sweeping gen¬
eralities and it is time to get down
to brass-tacks and cases and study
the growth of individual indus¬
tries. And I have pointed out how
I have gone about it, what my
methods were, and my tools, and
I
have gave you an idea as to
what my results were in terms

discovering the

trying to

say

point

what I

growth is indicated by the Seven*
Topis 0f,analysis 'that! haye pre¬
sented. to you. today for purposes*
of studying the comparative!
growth of 40 leading industries.

right

indicate

Forty Leading Industries GroupeS
A
ccording to Their Likely

you

possible to study growth
abstract, but in the

the

I have wanted to

concrete.

Rates of Growth

show

of these

Guided Missiles and Products Re¬
lated to Outer Space

efforts.

should

to make

Office

another

Equipment, incl. Computers!

quotation from Shakespeare in his, Electric Energy Sales
"Julius Caesar" play. One of the Air Transportation
~
lines in there says, "Upon what Electronics
meat doth this our Caesar feed Aluminum
that he is grown so great?"

"
Growth.
Well, Plastics
which American Residential Building Expenditure
industry feeds if it wants superior Research and Development.

Greatness

the

Drugs

meat

and

upon

Second Ten
;
i

New research lab opens up on a

Top Ten—100 to 200%

how it could be done. I have
wanted to show you the fruits

was

today.

gets

I have wanted to

you

major indus¬

was

not

superior growth in the next ten
and that

wanted

that it is

tries in this country that will have

years,

pinpoint the subject of growth.

of the economy

and

clouds

down to earth.

I have said that there has been

too

the

just recapitu¬
little and try to tie this up.
now,

place

of view before yo.u which brings
the subject of ^growth down out

30-30-30-10 formula

•

—

56 to

90%

Miscellaneous Business Services
Engineering and Other Service*
Water and Sewerage

;

State and Local Governments
Educational Services.

(
\
i

Natural Gas

)

Medical Services

The

new

Research

budget: 30% for development projects expected to bear fruit in
to three years;

30% for exploratory projects expected to

about five years;

one

Construction.

science, work with

This

rare

10%

•'

is the most

highly prized by

its

many

knowledgeable

55%

*■

Electrical Machinery
Scientific Instruments
Retail Trade — Food

well be increased under

may

Services

currently apparent application.

people/Republic foresees that this 10%

Third Ten —40 to

30% for the ten-year type of experiment; 10% for

pure

•

.•

'•

.'Legal Services

FIRST

Fourth Ten

the projects in the first 30% is the search for a coating for steels to be used
underbody of automobiles. Current work includes testing of metallic and
non-metallic coatings which can be applied to steel sheets, before fabrication by the

Testing the adherence of

auto makers. This would

sheet.

better product.

Here

the

determine how sharp a

project with extensive social benefits is under way to make industrial areas better
living places, by developing waste control. Closer Jo home is the development of a
prefabricated storage wall for residences, the wall can be made up of any combi¬

which
your

non-metallic coating on a steel

brake

press

protected underbody of

the

%'■

thi

;

•

second

•.

Federal Government

customer^ wish. In tlie industrial field, stepl is being subjected to uniform, constant
high temperatures to determine how much it may stretch over the years in use.

7A%w^<%yAv.v>.v.7.'.v.x

tilted

-•

Vj?

-jj

Zilka, Smfffter fo

Open Seattle Branch

a five-year.maturity.rating begin to take on a more eerie aspect. By the *
minutely precise equipment, Republic has graphed the expansion of steel
while it is being heated, and found the critical points at which it stops expanding
and begins to shrink. Then expands again. Republic is now applying a Hot Stage
Microscope (rare in. the steel industry) to learn why these changes occur. Through
this microscope, shown at right, the changing in the hot crystal structure can be

may

be of

use

in application of metals in outer

ATTLE, Wash.'— ZHRa,
& Co., Inc. will open ©

'Smither

gained

;

watched. Knowledge

Personal Services
Fabricated Metal Products,

Projects with
use

40%

car.

nation of drawers, shelves; and cupboards, accessible from either side according to '
Stress at

25 to

Non-Electrical Machinery.
'Transportation Equipment 'v
-Rubber;
.' r;
Banking
,Repairs J '_f.

bend can be applied to coated steel

someday may qualify as a

future

is being used to

machine

—

Paper and Allied Products
'
J
Freight Transportation, incl. trucks*

in the

give the auto industry

Retail Trade

-Amusements and Recreation,

Among

A
,'5i

Petroleum
■J

Printing and Publishing
Stone, Clay and Glass

aggressive programming.

THE

;

Communications

off in

pay

Chemicals and Allied Products

Center, dedicated officially this June, divides its

space.

It may also lead eventually to production of better iron powder.

Supra-microscopic inspection of minute parts falls into the five-year class, too.
Radioactive tracers will be used to
not

larger than

measure

speck of dust, which

wear

such small parts as

the balls,

into tiny ball bearings. This could be the
The

solution of measuring the wear of. or helping to produce, the Lilliputian parts in

satellites—which will last

close to forever

as man

Hot Stage Microscope is equipped with a furnace

the lens. Here the observer can watch metal

is permitted to achieve.

under

crystals change

through different temperatures.

structure as they pass

Radioactive tracers are also scheduled as part of the continuing research into
refractories. Refractory nozzles in the bottom of a ladle, for example, erode away
during
ihgot
.

pouring of hot steel. Does this eroded ceramic material end in the steel

in the slag? Tracers
:
•!

are
'

tK«SSS»XJ

expected to end this old, old argument.

■

''y'

C. Arnold Taylor

' '-'A

;

branch

new

THE THIRD 30

office in

Vice-President
Here long range

planning at present is devoted largely to improving
synthetic

scrap,

Taylor

processes to

make available materials not now usable. Direct reduction of ore, without

is already developing

the Logan,

Building, with C. Arnold Taylor,
was

Mr.

charge.

formerly

vice-presi¬
&

dent of Wm. P. Harper & Son

melting,

Co.

and potentially could be important in the

iron powder field.
The
means

grinding and dressing of
of

ores goes on

Forms Hunter Parker Co.

continuously to determine the best

upgrading and agglomerating the great variety of

ores

from Republic's

PORTLAND, Oreg. — Hunter
&
Co.
(Oreg. Ltd.) ha*
been formed with offices at 430

sources—Labrador, Liberia, the Adirondacks, the southern ferruginous
sandstone areas, and the extensive Lake Superior region.

Parker

many

&Mmk

Southwest Morrison Street* to en¬
gage

THE

BLUE

SKY

This

inkling of the type of work in the dream world of research comes from some of

Republic's "way-out" equipment. Coming into the Center is

Plasma Jet, represent¬

laboratory-sized vacuum melting
a

furnace—which looks

hybrid between Sputnik and a pressure

cooker-produces

high temperature alloys in hand-sized ingots. Here
the future are

steels of

being born.

a securities business. Part¬
Hunter C. Parker, general

ners are

partnerj and Richard

H. Parker*

limited partner. Hunter C. Parker
is a partner in Hunter Parker,

Connaway & Holdert.

ing the latest stage in the evolution of an industry which started when primitive man
first used

mud furnace to obtain crude metal from

ore

heated to around 2000°F.

This is not much hotter than your backyard charcoal barbecue
duces about 3000 F.

For 100

years or so,

pit. A blast furnace pro¬

steel furnaces have reached above 3000°F.

Oxyacetylene welding heat goes as high as 7000°F. And now comes the Plasma Jet,
practical working tool that can produce 30,000°F—hotter than anything most of us
have ever seen except the sun and stars. In the opposite extreme, the Center is in¬

REPUBLIC
General Offices

•

(Special to The Financial Chronicle)

Cleveland 1, Ohio

vestigating heat treatments that involve temperatures as low as —320°F, the temper¬
of liquid nitrogen. This cold can actually cause the structure of steel to change
in a sort of forced aging process. Applications, again, point to the Outer Space Age.

Two With Sutro

STEEL

SAN

cis

fa/<rt£oti C(/ode4£

ffiwyz

Dodd have become

Sutro

ature

FRANCISCO, Cal.^-Fran-.

J.. Broderick

Co.,

and

James

460

Montgomery

Street, members of the New
P_

Cnoct

associated with

Ctnnlr

Yodk

ITvrVlontfP®

(2864)

The Commercial and Financial Chronicle

Dean Witter to Admit

Exchanges,
David

The

bpace Age

Speculations?

Not many months ago, the Department of Defense announced
a major contract award
involving hundreds of millions of dollars
to one of the nation's key aircraft
companies. It was the kind of
contract news that in the not too distant past would have caused
a swift and sizable
appreciation in the market price of the stock.

Co.,

which will be dissolved June 30.

A MUTUAL

■

INVESTMENT

Nothing much, however, happened. Then, within a very few days,
word got out that another
contract, this time for only a few
million^ had been granted to the same company. Immediately the
market reacted in a big way. Why? On the second
occasion, some¬

stocks

have

had

the

market

from

time

look around and has made

FREE INFORMATION

FOLDER ANO PROSPECTUS TO

the National

Investment

Com¬

Mooney,
flected

confidence

the

in¬

economy,"

"continues

their

said ■V'- Mr.

re¬

which

the

ket

association

$82,689,000

figure >of

still stood at $76,424,000

—

level

the

$38,932,000

| Incorporated [
Investors
ESTABLISHED

A mutual fund

J92S

selected

little

than

tually

doubts that real commerical

emerge

missile

in the field

and fuel

fields, but it

atomic

energy

take

may

well

many

years

possible long-term growth of

Incorporated

Income F und
A mutual fund

list

investing in

of securities for
•

All

listed

equities

income

current

income.

this

funds.

A prospectus on each

your

investment dealer.

The Parker Corporation
200-

may prove to

As Chemical Fund sees
it, there are more than
chemical companies which are not

j
:

Berkeley Street

be the poor relations of tomorrow.

;
I

Boston, Mass.

total

31,394,

was

//::<•/;.//;-

■

Street

Fund,

Inc.

the

for

notes

before

value

asset

the

last

net

assets

Variable Annuities

cod*

kxc1

iE£sH

new

According to Prudential, the passage of the law "marks a,
and significant
chapter in the history of the insurance indus¬

try,

are

*ff*ct$rif>rirnarUy

one

that holds great promise

based

of enabling people

means

the value of

common

stock

Variable annuities

that the return to the

Gas Industries

offer

who

answer

many

They would.

critics of the present insurance system

charge that it fails to

take into account

the

damaging effect

of inflation.

..Approval-

statement made at the time he signed the three-bill
pack-

age, Governor Meyner said: "Whether

not the

annuity contract will
BATON A HOWARD, Incorporated
Y 24 Federal St. Boston 10. Mass.
□ STOCK FUND

Name

Address,

Shares,

than 49%

months.

over

Investment

investment

distributed during the
past 12 months amounted to more
than
such

$3 million, largest for any
period in the fund's history.

Gas They amounted to 10.4e per share.

$1:5 /.million

tributed- to'

the

Y:* ?-mate
the

given by
broadening of

policy of the fund to
existing limita¬

certain

remove"

the past
income

dividends

Inc.,

also

was

shareholders .to

year.

in'.

profits

.share,//or
dis¬

were

fund's
approxishareholders during

75,000
..

Largest

;

total,?

industrial

Financial

portfolio

investment

Industrial

Fund's

present is ? in
the
chemical group.
Next,.fin? rank,
field.
are
utilities, oils and electronics.
merger will not affect the number The
biggest holdings in these
of shares, or net asset value
of groups'are in Monsanto, American
shareholders' investments and will Telephone
& : Telegraph,i Texaco
not involve tax liabilities to either and
Philips Lamp, respectively.
the fund or the shareholders, Mr.
.^Sizable purchases -during the
Orr stated. Colonial
Distributors, Tatest quarter were in Arkansas
Inc.,
Boston,
will" continue
as Louisiana
Gas, Cessna Aircraft,
national distributor.
-Food
Machinery-and Chemical,"
❖
*
*
Allied Chemical, Ford Motor, Pip¬
President Herbert R. Anderson er
Aircraft,
Southern
Railway,
of
the
Common
Stock Fund of Sunray Mid-Continent
Oil, Transtions

investments in the energy
Changes as a result of the

Group
In

Prospectuses available from
your Investment Dealer or

0 BALANCED FUND

appre¬

chased, net assets have increased
nine

President

market

Oct.

„

holder fluctuates with the future worth
of the dollar.

Growth
nc°m9

new

to provide for
adequate retirement incomes."

!nVesVng**

Orr,

to Massachusetts.

ware

lav/, insurance companies would offer variable
annuities for sale under the
regulation of the New Jersey State s
Banking and Insurance Department. Before annuity*contracts can
be sold, however, the
banking department must draft special rules,.
including provisions for the licensing of agents.
1

result

ciation and additional shares pur¬

survive, and the state of incorpo¬
ration, will be changed from Dela¬

The action signalled a
victory for the Prudential Insurance
Company of America, which has been battling for five years to
,?

$1,-

Industries, has ; announced. The In addition, securities
Colonial Energy Shares name will „lhe, rate
of 5.6c per

state.

•

com¬

"" A

closed in his 94th quarterly report
to shareholders.

Energy

than TOO

five,

■

'4 *

Shareholders

own¬

Inc., boosted its net assets by $15,409,961 to a high to 151,313,341,
President Charles F. Smith dis¬

stated at $4,127,516 or

year.

one,
not
diversified

During its fiscal quarter ended
May 31, Financial Industrial Fund,

ex¬

Townsend U. S. & International
are

not

well

ership in
panies.

si:

April 30

from

one

day prior to the

Fund's

and

fund, notes
brochure, is to provide income
better i living
today—income

comes

change into the value of the Vir¬
ginia & Delaware assets.

Growth

this

-3.9%"

but from

of-the big
fund's shares at the close of busi¬
ness

that,

that will vary in amount but may
be
more
dependable because it

closing date. The number of One
William Street shares to be .issued
will be arrived at by
dividing the
net

reveals

The objective of the

a per¬

holding company. According
application, the Virginia &
Delaware Corp. will have assets
of about $940,000 on collection of
demand

Research

industry holdings
iron, 11.66% (in¬
Republic ? Steel),
auto parts, 8.9%,
tobacco, 7.89%
(including 3.75% Liggett &
Myers), retail trade, 7.46% (in¬
cluding 3.28% Allied Stores), and
utilities, 7.29%.

to the

certain

and

brochure

major

cluding

Securities-and. Ex¬
Commission for permis¬

•

of New Jersey has signed into
permitting the sale of variable annuities in that

Under the

the

moved

are

■

Governor Robert B. Meyner
law three bills

gain such approval.

added,

have

Other

William

fund

-are?steel

aircrafts, metals specialists and so on. Although the pres¬
Fund
inc.
of
Boston
have
ap¬
frenzy might not suggest it, a good many blue chips are going
proved
a
plan
to
merge
with
be riding around
up there with the first rocket ship,
>■
Colonial

Prudential Gets Green Light

sold

•*for|nearly 9% of total portfolio.

sonal

James

EATON & HOWARD

com¬

Among the biggest hold¬
Chesapeake & Ohio Rail¬
Co., N. Y., Chicago & St.
Louis R. R. Co., Great Northern
Railway Co. and Southern Rail¬
way Co., which altogether account

ent

CONSIDER...

way

Virginia & Delaware Corp.*

several

stocks

shares.

ings

and,
All

19,935.

$7.75 per share compared
688,875 or $5.59 per share

few sound

only well-established but have
a very
strong stake in the space business along with their other
promising lines. But the chemicals provide only one example. As
much strength and
participation can be found in the electronics,

Securities

total

reported

985,000.

rather

likely that, just as in all the sensationally
exaggerated booms of the past, there will sooner or later be a;
shake-out in the space
industry. Many of the darlings of today

fund is available from

companies

1958, it

change

Fund

seems

subsequent

of
less than 13.32% of
portfolio contained rail

June

sion to issue its shares for most of
the
cash
and
securities of the

by way of prefacing an important point for
shareholders and perhaps the mutual fund in¬
dustry as a whole. While the small companies with big know-how ;
and relatively small
capitalizations may be the darlings of indi¬
vidual speculators, most of them are
quite unsuitable for the mutual fund temperament, except among the frankly speculative
Chemical

the

May,

One

act

mar¬

stocks are apparently
security of National
Series, mutual fund of the

Stock

has asked the

capital and income.

:,'V

the

of intensive

Earnings arising from military contracts are subject to change or
cancellation on short notice; (2) Profit margins on
government
contracts are small, as low as
2%, and are subject to protracted
renegotiation; (3) Government-sponsored research work does not /
offer the same patent protection as does privately financed research, and (4) Commercial opportunities growing out of space
age technology will require prolonged and intensive development
before bearing fruit.

for

highs" than those being purchased.

accumulation plans in fpfceJ&'t .the
end of May, 1959, numbered an

even-

the

average,

Corporation.

month

unpleasant

opportunities will

the

stocks

fund

higher in terms of 1955-57

National

Exchange

estimated

one

than

Stock

research and development to reach this
goal."
Some of the things that are
wrong with a good many space
age stocks right now, points out Chemical Fund, are these: (1)

investing in

list of securities

with

from

the

quality being purchased.

the

much

30,780 accumulation plans opened
in
May, 1959. In the previous

memories.
"No

and

3,500 different securities in
2,000
corporations,
New
York

Member

more.

attempted to participate in

FREE ON REQUEST

shift

stocks., being

some

"This is not the first time such a
phenomenon has occurred.
The advent of atomic energy
triggered a boom in uranium stocks.
This boom ended
relatively soon, leaving most individuals who

EITHER PROSPECTUS

break

attractive

held

described

permitted

parable

April,
nearly

twice

to 7.46%.

The funds' broad diversification •;. Railroad
indicated by their holdings of a Tavorite

The securities of these companies have
experienced a,speculative
boom with certain 'glamour' stocks
selling as much as 40 times

earnings

gas

recovery.
At recent> levels, said
he, their yields and future appre¬
ciation potentials have proved less

from

Broadway, Now York 5, N. Y.

and

particularly well in the 1957

4(5^ ,mem¬

by the open-ends represented
point, Chemical Fund lowers the boom. "Much of the
approximately 3,5% ? of' the total
present interest in space age stocks," ' says the
newsletter, "is?value of- all* equities
on. the ex-s
speculative, concentrating on a number of small companies active
change.
<
in rocket and fuel
development based on government contracts.

Etfablishtd 1930

electric

Anderson

changes

steady purchases

10.38%

was

At this

RESEARCH CORPORATION

May, 1958.

lays will continue to increase.

NATIONAL SECURITIES &

to 3.12%. Notable de¬

were

utilities,/-down from 15.62% to
7.24%, in banking and finance,
from 9.34% to 2%, and in food,
from

shares."

companies

The fund then observes that the
possibility is that the out¬

trend.

YOUR INVESTMENT DEALER OR

"The

the

space

creases

$14,622,668,000 at
the end of April to $14,889,921,000
at the close of May. One year
earlier, the combined net assets
amounted to just $10,098,844,000.
Redemptions, while
down
from

pretty blunt appraisal of the
entire situation. In the recent
newsletter, the fund admits that the
government will this year spend a hefty $3.4 billion on missiles and
related devices, and even reprints a chart
depicting the trajectory
of such spending over the years. It
is, of course, an awesome up¬

WRITE FOR

from 0.79%

panies.

ber

rather discreet silence.

Now, Chemical Fund. Inc. has blasted off into outer
have

Association "of
vestors

increased

Apparently,
however, most of them have approached these issues gingerly, if
at all. Amid the rather general hubbub of the Buck
Rogers stocks,
most mutual funds have maintained

Director of

Total net assets of the

time.

ecutive

of mutual fund

body mentioned the word "space."
Mutual funriers, like most other traders in
securities, have
cocked their eyebrows at the effect the so-called
"space age"

FUND

the $192,018,000 tally of
These, were
figures- re¬
ported by George A. Mooney^ Ex¬

April.

btocks—Investments

Report

funds

off from

in Laurence M. Marks &

120

Thursday, June 25, 1959

purchases; during •road equipment from
3.29%
to
May amounted to $180,826,000— 6.77%, in
petroleum from 2.40%
up sharply from the $109,483,000 to
4.03%, in automobiles from
of the same month last year but
"2.16% to 5.59%, and in textiles

By ROBERT R. RICH

on July 1 will
Lovell, member
of the New York Exchange, Carl
C. Brown and Edmund E. Barrett,
Jr. to partnership. All are part¬
ners

Mutual

Mutual Funds

Dean Witter & Co., members of
the New York and Pacific Coast

Stock

The Mutual Fn mis

Lovell, Brown & Barrett
admit

prove

dicted, but the problem is

to be
so

useful

proposed variable

answer

important that

reports

•

net assets by $11,000,000 to a cur¬
rent figure to $63,790,000 during

opportunity to

try to meet it ought not be
denied, even though the subject has
been sharply controversial."

mission.

Inc.,

that

cannot be pre¬

Sales of variable
annuity contracts will be regulated not only
by the state agency but also by the Securities and
Exchange Com¬

Securities,

the

fund

its

total

america and Vick

disposals

were

Chemical, Major

American

Cy-

anamid, General Precision Equip¬

the first six months of fiscal 1959.

ment, W. R. Grace, Koppers, Para¬
mount Pictures, Philco and Victor

Shareholder

Chemical

14% to
the

same

accounts

jumped
high of 15,631 over
period.

new

Major
•

increased

portfolio

volved

increase

stocks

from

8.98%

changes
in

in¬

railroad

12.94%

holdings, other increases in rall-

Works.

National

...

Securities Series group

of mutual funds has taken
on

several

have
fiscal

stocks

which

profits
yields

dropped. During its current
year,

begun

last

May

1, it

Volume

189

Number 5858

has built up its holdings of
copper,
tobacco and public
utility stocks.

Here
fund

are

Foujds Joins
Wm. P. Harper & Son

tips for mutual
gleaned from the

some

salesmen

Govt. Devel. Bank

Clinton

SEATTLE, Wash.

Franklin Almanac, publication for
distributors of Franklin Custodian
Funds: (1) Make up a list of all

Our

and ~

cided

♦

•

'•

■

.**

•

I*-,'/-

•.

•••■

tt*

•
*"" «i»

•

•"'%

■

.c:

the

Whether there be
or
*

sold at

pushed

end

the

fiscal

year

June 30.

the

lifting of the debt interest rate entirely, \

higher level,

Government bonds be

discount in order to meet the present competitive con¬

though higher yields are in store for Treasury
issues with a maturity of more than five years.
As long as this
uncertainty hangs over the capital market, it is not going to do
very much.
•

ditions, it

" V

before

hand, the question of a higher interest rate limit than 41/4%
for long-term Government bonds will probably not be cleared
up until some time in the future, since there is evidently more
than a little bit of politics involved in this situation.

other

•

clear thinking and accurate-doing. (4) Be a reader that hits the •
high spots. * If it is important, 1
make a real mental note of it.
(5) :
If- you make a
study of a situa— :
tion, 'take your time, - > ' ;
*
*
\

Bank

(1 year, to end June 30, 1960) and a permanent one of $285
billion, appear to be very much in the cards and should be de¬

holdings. '

the

Development

basis

(2) Keep a daily record of sales
and gross-commissions earned.
(3)
Discard useless information
cluttered desk is a handicap

been

have

Vice-Presidents

Government

and

Esteves

Jr.,

Pershing,

named

The increase in the debt limit to $295 billion on a temporary

Appoints

Vernon

John

By JOHN T. CHIPPENDALE, JR.

•

Foulds has become associated with

trades

For P. R.

Governments

Dr.

customers that you call regularly.
Keep up-to-date records of all
customer

Reporter

Clinton

—

(2865)

The Commercial and Financial Chronicle

■■

seems as

John

My Templeton, President
ViKifnAriiftf
I"11-.
1
ofF
Nucleonics,; Chemistry ; and
Electronics Shares, Inc., has sug-

gested

that

make

soon

Japanese

Wm. P. Harper & Son & Co., 1504
Third Ave., 1ft" the trading de-

Dr. V.

There has been

The V

reason

that

•

« •

Japan,-under

dividends. 'Templeton calcu¬
lates that a stockholder in the 30% 4
top tax bracket may under cer- i
tain conditions pay less than half
as
much
in
over-all
taxes
on

Japanese

dividends
dividends. /'\V.'.

Of Chemists'
The

succeeds

; ;V;

Group

Union

Carbide,

tors of the-

JF'

^ the Doards

nam
Balanced
Stein
Roe &

Stock
Inc.

and

has

Board

been

;

companies
managed

President,

Union

Carbide

;
,

the

invest¬

ing;; firm

Stein

'■a*.

Roe

tor,
E.

Robert

Brooker

.Mr.

President

Whirlpool Corp., St. Joseph, Mich.,
appliances. Prior
to his connection with Whirlpool,
he

was

Vice-President

and

Memorial

well

Foun¬

Forms Sievers In v.
MOUNT CARMEL,

111.—Adolph

F. Sievers is engaging in a securi-

ties

business from

offices

Mathieson

Washing¬
full-time

225

Street under the firm
of Sievers Investment Co.

Mulberry

the

money

three-

expiring May 31, 1962

Peter

Bank

been

1958,

Economic
Munoz

ernor

University and Har¬
School, Mr. Pershing

of Princeton

vard

Law

formerly was an Assistant Profes¬
sor
of Government and Public
at

Law

University of North

the

Carolina.

promotion
Presidents

pen

to the interest rate for long-term Government bonds.
It
that the present top level of 4*4% for issues with

a
than five years is not going to put these bonds
the market unless they are sold at a discount to meet the

evident

conditions. It may
Government issues
may still be kept at the 4J/4% level, which could be achieved if
the Treasury is forced to sell issues of more than a five-year
maturity at a discount in order to meet existing conditions.
currently existing competitive capital market
that the interest rate level for long-term

Midwest Exch. Names

point of the public in formulating
Exchange policies. They cannot be
members or nominees of member

Public Advisors

firms.

CHICAGO, 111. —
executives

business

Six leading
have
been

named

ton;

■

St. Louis

Mo.-—The St. Louis

Society of Financial Analysts have
elected the following officers:
President: Harry F.

Assistant

the

Vice-

of the following staff
The
Government

for

Bank

Puerto

Rodriguez CoBazo, J. J.

Cardona, John Martinez Echevarria,
Salvador Rodriguez, Fran¬
Boneta, John Mudie
and Mario E. Rodriguez Olmo. ;■

Andersen, Randolph Brchu
Wash. — An¬
Randolph
&
Co.
has
a
branch office at 613

BREMMERTON,
dersen,
opened

the direction

Pacific Street under
of Wendel Walker.

Kurland Sees. Opens
PHILLIPSBURG, N. J—Alfred
Kurland is conducting a securities
business from offices at 31 South^
Main Street under the firm name
of Kurland Securities.

Specialists in
U. S. GOVERNMENT
and

Analysis

Elect New Officers
ST. LOUIS,

announced

also

Pico

Dr.

cisco Rivera

point where the tax burden is getting to be a bit on the heavy
side to say the least.
The new tax free offerings will tend to keep
rates for these obligations from going down to any exfent.
Probably the most important force overhanging the capital
market is the answer to the question as to what is going to hap¬

was^

Administra¬

Cooperation

nomic

It is possible, however, that the pick-up in expenditures for
new plant and
equipment could bring about an increase in the
offering of corporate bonds. As against this, there are no indica¬
tions that the introduction of new issues of tax-exempt bonds is

the

tion, stationed in. Paris. Mr. Pershr
ing has been General Counsel for
the Bank since 1954. A graduate

Development

going to show any appreciable let-up, in spite of talk that not
few of the communities that are selling securities are reaching

Marin.

Washington, D. C. and a specialist
in foreign payments for the Eco¬

members

having previously
Advisor to Gov¬

formerly an economist for the In¬
ternational
Monetary
Fund
in

Rico:

public advisors to the Mid¬
Stock
Exchange
for the
John R. Hoover, President, west
coming
year, Sampson Rogers Jr.,
W
F Piracy Onpnc
' B.
F. Goodrich Chemical Co.,
W. E*
v^legg upens
Cleveland; Theodore Marvin, partner of McMaster, Hutchinson
.CLEVELAND, Ohio—William President, Michigan Chemical & Co. and Chairman of Midwest's
of
E. Clegg is engaging in a securiGovernors,
has
an¬
Corporation, St. Louis, Mich.; Carl Board
ties business from offices in the j*. Prutton, Executive Vice-Presi- nounced.
Newcomers
to
the
advisory
Superior Bldg. He was formerly dent, Food Machinery and ChemiWith Livingston, Williams & Co.-calJCprp., New-York; and Robert group
are
Dean
H.
Mitchell,
of
Northern
Indiana
4.
" B..
Semple, President, Wyandotte President
Public
Service
Co.,
Hammond,
Form D. W. Daniels Co.- ^l^fcals Corp., Wyandotte, Mich. Jnd.; Joseph Griesedieck, President
mMpqTp..n
M
V.
n
w
'The -Manufacturing Chemists' of Falstaff Brewing Corp., St.
HEMPSTEAD, N. Y. — D. W.

name

market or the capital market is also under
cloud, even though it is not likely that the corporate bond flotations will be as sizable in the future as was the case not so long

maturity of

Allen,. President,
Canadian
Industries Limited,
Montreal; L. G,, Bliss, President,
Foote Mineral Company,
Phila¬
delphia; Bruce K. Brown, Presi¬
dent, Petroleum Chemicals, Inc.,
New Orleans; Howard S. Bunn,
President, Union- Carbide Corp.,
New York; -R. F. Coppedge, Jr.,
President, National Distillers and
Chemical Corp., New York; A. E.
Forster,
President,
Hercules
Powder Company, Inc., Wilmingare:

dation.

Olin

elected, for

Directors

the Illinois Institute of Technology

the Armour Research

were

Chairman

Okla.

Children's Home and Aid Society,
and

Board

Chicago,; year team

Hospital,

Vice-Presidents

Nichols,

ton, was re-elected
Secretary-Treasurer.

trustee of the Illinois

Maurice F. Crass, Jr.,

Co.,

ley

Direc¬

re-elected.

Bartlesville,

di¬

of Sears, Roebuck and Co.
also is a director of Swift &

Columbus Fiber Mills Co.,
Sta-Rite Products, Inc., and Wes-

Thomas, Vice-President
Phillips Petroleum Company,

rector
He

and

and R?W.

facturers of home

money

chemical Corporation, New York,

of the nation's largest manu¬

one

was

the

ago.

President

Elected
Thomas

Brooker. is

Private Bond Market Vulnerable

Gen, John E. Hull, USA (Ret.),
full-time

Farnham,

opinions

The. long-term

ment counsel¬

Dawson, Viceclu Pont de Ne-

mittee.

quotations

indicate that the competition for short-term money
be strong in the foreseeable future since the
Treasury will most likely raise a considerable amount of its new
money through the sale of near-term Government obligations.

are

considered

are

continue

will

; mours &7..Co.,: Inc., Wilmington,
Del.,
succeeds
Mr.
Comior
as
; Chairman of the Executive Com¬

t ment

the

David ! H.-r

Dr.

Chicago-based

This appears to

Corporation, New York.

funds. The two

Harry B. McCIure,
of

upside

market.
This means that the near-term
market for Treasury issues will be inclined to be on the firm side,
with a slightly upward trend in rates not to be unexpected. Busi¬
ness, commercial, and agricultural loans will be picking up in
the not too distant future and this, along with the increasing
demands for funds for consumers goods and inventories, will
mean there will be no decrease
in the need for loanable funds.

pressure

•

He succeeds

of, both

i.nve

of Directors of the Manu-

Vice-President

Jr., Pres¬

ident

facturing Chemists' Association at
its 87th Annual Meeting held at
White Sulphur Spring's,' W.'4 Va.,

;last June 11.

Harry H. Hagey,

„

Fund,

announced

,was

Roe_& Farn-

Fund, .'Inc.

uncertainties overhanging

and capital
whether it be
for short- or long-term purposes, will go higher as the year moves
along. ' The Federal Reserve Banks have evidently decided that
net borrowed reserves will be kept in the neighborhood of $500
million so that there will not be any appreciable lessening in the

;Mc«kVco?toc?RSyfN.
J°
elected Chairman of 'the

RobeACE°B' I11/-Tthe)ehlec«°» of
f directorsof Stein

many

markets that the cost of obtaining borrowed funds,

Manufacturing Chem¬

ists' Association.

Of Stein Roe Funds :

the

There

Chairman of the Board of Direc¬

R. E. Brooker Director

too

are

effective July 1,
Dr. Rafael Pico, President, has
announced., A
graduate of the
University of Puerto Rico, Dr.
Esteves
completed
postgraduate
studies at Harvard, obtaining his
Doctorate in Economy in 1948. He
was
appointed Director of the
Economics
Department
of
the

for Puerto Rico,

have a pronounced move¬
of Treasury obligations.
There will have to be a settlement of some of these conditioning
factors before investors will be willing to take, sizable positions
in Government securities, especially the longer-term obligations,
since the near-term liquid issues will continue to attract funds
in a period of unsettlement.

Harry B. McCIure, Vice-

President

that there

evident

ment

President of, Merck & Co.

John Pershing, Jr.

R. Esteves

mar¬

both the money and capital markets to

Connor Is Chairman

modest betterment in the tone in the

However, this improvement has not
yet reached proportions that could be classified as a rally that
might continue at an accelerated rate with the passing of time.

may

a
tax treaty with r
this country, will withhold no tax :

ket for Government issues.

partment. Mr. Foulds was formerly
bigger hit with U. S.^with Foster & Marshall,

investors.

stocks

Long Bonds to Remain Under Pressure

federal agency

Securities

Langenberg,

& Gardner.
Vice-President: George R. Hays,
Laclede Gas Co.
;

Reinholdt

Secretary:

Alois

Bolfing,

•

Association is

Darnels Co., Inc. has been formea
with oiiices at 114 Main Street

representing

to engage m a securities

in the United

Officers

Daniel

are

President;; Harvey
Vice-President;
and
Widelock, Secretary.

business.

^he chemical

Schneider,-nhemical

Shaw,

Vilas
V
as

&>
&,

States and Canada.

Named Director
Adams

analyst

TSTfw
Nevv

York
York,

City, passed away suddenly June
15th.

in the

Harriet

railroad

Hirkev
Hie
y,

group

field,

William

industry group

than 90% of
production capacity

Widelock, jf. -ls j_he oldest trade
-

E. L. Shaw
with
Wit

has

been

Call,

partner

Peck, New York City,
elected to the board of
,

„

directors of the Bettinger Corporatj0n.

Mr. Call was instrumental

arranging Beftinger's recently
completed new financing.
jn

Transit Casualty Co.
Treasurer:

John

Maloney,
Bank of St.

Louis; Thomas G. Harrison, Chair¬ Boatmen's National
man,
Super Valu
Stores, Inc., Louis.
Minn.,
and
Charles
E.
Spahr,
Board
of Governors:
William
President of Standard Oil Co. of
Mead, General American Life In¬
Ohio, Cleveland.
surance
Co.;
Robert Kohlsdorf,
Re-elected to second consecu¬ Mercantile Trust Co.; and Francis
tive terms were David M. Ken¬ A.
Dunnigan, Smith, Moore & Co.
nedy, President of the Continen¬
tal
Illinois
National
Bank and
Mitchell Branch in S. C.
Trust Co. of Chicago, and Ben
GREENVILLE, S. C. — G. J.
Regan, President of Nationwide
Mitchell
Jr.
Co. has opened a
Food Service, Inc., Chicago.
Function of the advisors, who branch office at 501 East North
Street under the management of
are selected by the Board of Gov¬
ernors,

is to represent the view¬

Charles

Moss.

Aubrey G. Lanston
& Co.
INCORPORATED

20 BROAD

STREET

NEW YORK
☆

CHICAGO

☆

BOSTON

(2666)

The Commercial and Financial Chronicle

Continued from first page

■

}

•

and more at the
present time. The existence of
these very large commitments for the
years ahead makes
it all the more
imperative that current
even more

\As We See budgetary
It
the hope of a better
which to face the voters next year lies

far and

situation with
mostly in the ex¬

and that

rapidly

outlays be reduced
possible and that extraordinary
adding to the already staggering

be taken to avoid

care

Thursday, June 25, 1959

will people whose consumption
conspicuously exceeds their de¬
clared incomes.
(The gaudy dis¬
play .ojrinflation profits has done
its
sfwre~'fri
fostering
French

communism.) As to small business

weight of future commitments.

—not

even

dares

dictator

propose to the French that they
make their income
declarations

pectation of larger tax collections.
Continued from first
page

A Serious Situation

oath. But 2,400 inspectors
engaged to go after the taxdodgers.
under

are

situation, all too often over¬
the rank and file. It is as true
of financial transgressions as of any other that, as the poet
expressed it, "vice is a monster of so frightful mien as to
be hated needs but to be seen; yet seen too oft, familiar
with iter face, we first endure, then pity, then embraceT
A very substantial proportion of the voting population of
this country has never known a budgetary situation essentialjy different from that now existing. This state of af¬
fairs tends to look normal to these younger elements in
the population. The older members of the populace have
in all too many instances simply grown accustomed to the
a very serious
not understood by

Here is

looked

The Balance Sheet of

fully,
more

time the

was

clear that it—and

platform

Eisenhower Administration ap¬

matter

even

those

who

sign of fading out.
\
expenditures adjusted to permit
integration into the national accounts of the Department
of Commerce had got down to
slightly less than $69 bil¬
lion An 1955—a large
enough figure in all conscience, but
.© good deal below the
nearly $78 billion in 1953. In 1956,
the figure rose to
nearly $72 billion, and has shown a
further increase each year
since, including 1958 and the
(at

though by

off.

the

was

sidies

Really significant budgetary reform always has
begin a year to two or three years in
advance, since
•fiscal extravagance
always places heavy loads upon the
to

number of years,

not

■

yet

been able to discern in the
national capital, is some serious
effort to avoid commitments
which will fasten
heavy bur¬
dens upon the shoulders of the

taxpayer in 1960, 1961 and

i
one

fail to notice that

some

of the
very

they

negligible. They
interest paid by the

were

four times net
//Federal Government. Of
course, the main element in these

Vpayments is the outlays on account of the old
**age and survivors insurance, so-called. The
second most
important is the aggregate of
military pensions and the
like.

These two
together

accounted

for

than

two-

thirds of the total in
1957, and without doubt account for

;

are now

un¬

administrative costs.
the variety of tax rates on
value"—a sales levy on

the

level

manufacturing

been reduced from

some

—

has

20 to 4.

system

whole will take time.

(6) All expenditures other than
"productive" capital investr

for

ment

to be covered by current

are

revenues.

>•

(7) The deficit (for productive
investment) is to be limited to
the amount the government can
borrow from, domestic savers. No

monetization

debt

course

the central bank

re¬

the

commercial banks!- Abandoned is
the

practice of the Fourth Repub¬

lic—to spend first, then look for
means
to
fill
the hole
in the

budget.
(8) A key feature of fiscal re¬
form is, or will be, the simplifi¬
cation
and
decimation
of
the

rates

articles

the

national

trouble,

budget—the

ir¬

and

"economic

interven¬

industries'

chronic

financial

>4.

incomes to the acid test of the law

supply and demand

is the

—

general idea of Dc Gaulle's budget
However, more than the

reform.

has

budget

reformed in

order to accomplish the

aim.

Terminating the monetization of
trouble and the very sick social¬
ized medicine have to pay their, the public debt and stabilizing the
way by increasing their charges currency herald the eixl of infla¬
and*/or reducing their services. Of tion and the restoration of com¬
subsidies
and

veterans,
bonfire was

consumers,

farmers, etc.,

niade

of France should not be used

Vehicle to pour out funds that do
not figure as public expenditures.

1958, France's budget deficit
amounted
to 600
billion francs,
Which is what had been done for
roughly $1.2 billion. Nothing dra¬ years: the central bank was forced
matic, by American standards. But to provide "intermediate" credit
in
terms
of
the respective per
for home construction.
This in¬
capita national incomes it was flationary
mal-practice alone has
equivalent to $14 billion, or more. stretched the French
money base
And that was. neither the begin¬
by 570 billion francs ($1.14 bil¬
ning nor the end of it.
•
lion). In 1958, it was expanding
Huge deficits were piling up to the tune cf 274 billion francs—
year
after year.
Last October, the money supply by 450 billion
when the Minister of Finance put or 6%, without counting savings
his 1959 budget together, a pro¬ bank
deposits — despite
severe
spective hole of almost $2.4 billion credit
restrictions, because
the
was staring him in the face. Such
central bank had to
rediscount
was the
delayed effect of the 1957 these five-year "mobilization"
devaluation, reinforced
by
the bills arising from mortgage loans.
impact of the all-pervading esca¬
-

large

burden the taxpayer is
carrying this year, was carrying
Inst year, and will
plainly be carrying in increasing weight
many years f° come goes all the
way back to
the New Deal
days, although, of course, it has been en¬
larged from time to time in more recent
years. "Transfer
payments" are now running at more than
$21 billion a
fe£ently as 1957 they came to only a little more
than $17
billion, and in 1946 were less than $10 billion. Of
course, prior to the New Deal
jare now not far from

Fiscal Reform: Principles

thoughtful taxpayer would

Washington, and has

wastebasket.

bu¬

from

petitive

the

.Lacking

markets.

automatism of the gold standard,
credit inflation was checked by

to the tune of 236 billion
(another name for sub¬
strict ceilings set — already since
sidies), engendering deficits and francs ($470 billion). In the long
inflation. Since the liberation in run, the former recipients will be February 1958 — over bank bor¬
rowing at the Banqiie de France.
1944, the Fourth Republic's money no worse off: inflation used to
Import licensing has been very
supply has risen by 540 million cancel off the "benefits."
substantially relaxed. On Jan. 1
francs on a daily average — an
(3) JJ/q more hidden subsidies! of this year, the Common Market
amount larger than the total
If subsidies there must be, they
went ihto operation, reducing by
forced upon the country during should
appear
in
the
budget. 10% the tariff against the other
four years of German occupation. Especially, the
(nationalized) Bank members. Lesser concessions have

extensive.

later years.
Let no

cause

no means its sole cause,

tions"

.......The fact of the matter is that it would
be very dif¬
ficult to make large reductions
forthwith, since commit¬
ments for this
year and the next and the next are so
-

but for

thrown

are

repressible flood of "social" sub¬

Future Commitments*

one year

the

The chief

unable to say, but it may be taken
really substantial reduction is in the

©head. What-the informed and
like most of all to see in

It had to follow prin¬
ciples which negate, more or less,

satisfaction,

are

taxpayers in not only

was

and of distributive justice. The functions of the government, not
Keynesian gobbledygook ruled to "direct" the economy, or to
supreme. Here was a prime reason control the business cycle, to re¬
for lack of resistance against in¬ form mankind and to falsify the
mechanism.
Nationalized
flation: in the fear of the "cold" price

points, we
for granted that

"added

mandatory.

Taxes

well

market, if its shackles

E.g.,

be for the full year, 1959 (these are all calendar
years)
or for 1960 even if the
President is able to have his
way
no

cleaning

excessive

from
as

necessary

•

seasonally adjusted annual
rate). By 1958, the figure stood at $87 billion, and in the
first quarter of 1959 was
proceeding at an annual rate of
well over $90 billion. What the
figure on this basis would

at all

house

system

But the reform of the tax

fate of the defunct Fourth.

Thorough

tax

upped when higher
promise improved returns— overgrown bureaucracy.
When¬
of mass consumption
ever a problem arose, the French
sur¬ such as
cigarettes and gasoline; welfare state's answer was a new
vival of unfit business and farm
and lowered
(by about 2%) on official agency, usually overlap¬
became an unwritten imperative
perfumes and caviar, in order to
ping and conflicting-with older,
of national policy.
increase revenues. Along the same
ones.
The consquent inflation of
An
intellectual setback went
lines, while tax loopholes are the bureaucratic apparatus cannot
hand in hand witii the economic
being closed, "exceptional levies" be cured overnight. It will take
disruption, brought about by the on business
corporations, onerous years before the full benefit of
cumulation of immobilities, fric¬
real
estate
transfer
dues,
and administrative deflation /.will ac-'
tions, lags, and disequilibria. nuisance taxes are eliminated or
crue
to the harassed public and
Within
a
.generation's- lifetime, reduced. The slap in the face of
to the Treasury. Raising the bu¬
French economists and business¬
the Welfarist philosophy is more
reaucrats' retirement age—lowest
men, to say nothing of the bu¬
acutely resented by the "Liberals" in the nationalized industries—is
reaucrats, have literally forgotten than the moderate shift in dthe
another item on the same agenda.
the laws
of
the market place.
incidence of the tax burden.
They have lost their sense for its
"Operation Verity"
(2) Similarly, budgetary
ex¬
ability to provide (he optimum of
Subjecting French prices and
penditures are to serve essential
output, of consumer

profits divorced from
supply-demand equations, the

or no

quarter of 1959

been stymied. The Fifth Republic
would have shared the inglorious

efficiency.

and

Federal Government

first

labor

tional relation to risk incurred or
value produced; with costs,
prices

which the Eisenhower campaign
was based—were not
wholly free from New Deal taint.
TThe trend, in any event, was sharply reversed after some
apparent progress in 1954 and 1955. Beginning in 1956
©n
upward trend in national expenditures appeared which
©till shows little

"scientifically," and
disastrously developed. As a

1950 and

for that

been

Common

particular, basic tenets of the welfare state.
(Between
(1) From, here on, generally
1957, the index of Pari¬
speaking, public revenues are to
sian wages went up 2%-fold while
pay for public spending—not for
the cost of living index did not
redistributing incomes or manipu¬
even double.)
Distortion of incen¬
lating the economic process.
tives
and
malallocation
of
re¬
The re b j', if only as a matter of
sources (into protective
"hedges" principle, France returned to the
in lieu of productive
investments) classical rule of fiscal policy ac¬
became rampant. The combination
cording to which taxes are raised
of over-expansion in some sectors
for
one
purpose,
one
only: to
and under-development in others
cover necessary expenditures. Lit was
one
of
the
earmarks
of
erally overnight, a fundamental
France's great "recovery." Legiti¬
postulate of all socialist taxation
mate profits ceased to bear a ra¬
was
thrown in the
with

peared do be making at least some endeavor to follow the
general prescriptions of the 1952 document, although it
drafted the

Welfare

nowhere

markets and with domestic
costs;
and costs, labor costs in

good deal in the 1952 Repub¬
lican platform to give hope of at least moderate effort to
bring this hazardous financial situation into better con¬
a

has
more

result, French prices had lost con¬
tact, more or less, with the world

jby the Keynesian or neo-Keynesian philosophy. And, of
is always the case in such circumstances, there
©re a great many who have acquired what they have come
to regard as vested rights in this type of management of
public finances.
It all adds up to a dangerous state of affairs. It would
Jie a good thing if at least the leading elements in each
'community could be persuaded to take a good, long look

trol. And for

matter

Market—a political "must" on De
Gaulle's program — would have

The

relief

reaucratism

semblance of competitive markets

State

course, as

was

dent

had almost vanished.
The semi-autarchic

of months.

the

being greatly simplif ied, with inci¬

French Stabilization

situation, and have often had their brains well washed

©t the record. There

(5) The extremely complicated
structure

lators.

The

mere

might have
franc

into

Overhauling the Revenue

announcement

sufficed

tailspin.

one-half of this deficit

send

could

Structure

the

More than
not

(4) No tax privileges and ex¬
emptions, or in exceptional cases
only, and no tax evasion to be

have been raised except with the
aid of the printing press.
With

tolerated.

vicious price- and wage-escalators

one,

been granted to non-members, too,
and
French trade
liberalization

Thereby,
the
progressively
breeze of
international
competition,
and
thousands of parasitic organisms
are
being deprived of artificial
nourishment.
Also, the cost of
imports is being reduced; scrap¬
proceeds

apace.

economy

being

exposed- to "the

ping
lar

fresh

some quotas imposed in dol¬
trade saves, as an example,

the cost of imported cotton.

Extent of Progress to Date

All of which still is

some

ways

from genuinely free markets, but
much

ning.

The

than

French

mere

begin¬

welfare

state

has not been discarded altogether.

the

francs

projected
in

direct

1,268

billion

subsidies

and

"interventions," not less than 1,032
billion survive the budget purg¬

ing; social security is actually ex¬
The French farmer, for
panded by broadening the range
has been de facto, though of the
"insured," though the med¬
coming again into operation and not de jure, exempt from paying
ical kind is trimmed; the govern¬
a fresh wave of
capital flight set¬ the progressive income tax. He
ting in, the complete debacle of will soon begin carrying his share; ment retains full control of the
the franc was to be expected in a
also, in social security levies. So capital market. And there remain

Volume

Number 5858

189

The Commercial and Financial Chronicle

nationalized: and a major fraction

the best the De Gaulle
regime considered enforceable
without .recourse to force. Its
hopes are set on the regenerating
power of. the .liberalized market

economy;

significant

dirigism:, ently

residuals

prices in the farm sector
(and beyond) still are being fixed;

some

nationalized ^ industries

the

stay

•

the nation's investments still is

planned

True;

most

■

the; gradual

return

the

save

billion

•
,
rJ __t h

But

boosting

|tl^i^Jf5-v:.

X portion; of - the
good'

commandeered

I\/T n

rwr»

f*
B

■

■ mar ma

i-_

Trust Company could

,:j

—

Bank Stocks
,

matter

fact,. capital
of

sorts)

all

get>with

total

almost

one-fourth

expenditures.
d

The

End

Several

Francy Kuhn¬

stockholders'meeting.

e o r g e A
Kuhnreich,
President;

;

Financial" Analysts

Managed Money

aspects

the

power

society.
. ,r.

monetmy_ and^.fiscal reiornj are .. COLLEGE PARK, Md.-^-H. L.
i.P*
w?*S.Sv.especially,
Mso,- Smitli'Co? ;Has been formed with
the rate
of 1/
5/^ at
which the -0fficey at? 7302 Yale Avenue. Offranc was aevalued.
It WPs neces-

Kuhnreich

^ers

the

Common

Market

security burdens

than

And

the

other

billion

subsidies

.have

given

—

the fact that their wage

social

chance-derit;

Smith, Vice-Presi-

.•

francs

been; cut

exporl

Maria Mr Drew

•

"out" of

and

formed

Powers-1 haive

ders ol'the French

taxpayer onto
France's commercial competitors.
In the process, huge profits, were
thrown into, the laps of the specu¬
lators
who ; had; sold
the* franc
short, : %

significant

Co.,

Street,

Wall

The
stock.

York

effect, real wrages

are

Francoise Malle

lesser

•.

..L'elaiieici LrO. to Admit
Alfred" T. ^Sviahan
and
Jean-

cut
the- private...

sector; and similarly, if to

overhauling of the - French New —York-

The

economy

reasonable

bounds

and

the
competitive
incentives
unleashed,. J> u s i li e s s enterprise
should get-a sound impetus. Most

Stock Exchange. Mr.

for

the

these

time

reserves

ernment's

ten

„

years,

the-govobligations,- At

foreign

the surplus was some

$300 million—and

(window

sacje

central

bank

ratis-

dressing)
reports

—

outstrip

Abramowitz

in a se-

is engaging

22-31

New York Avenue.
V''jr
.

the deficit

year ago.

All of which is, to repeat, the
auspicious opening up of a reform

rather

than
The

self.

the

final

it-

reform

of
Sound Money with the Welfare
State,was a- compromise—apparshotgun-wedding

Form Advance Planning
FOREST
vance

1 The

all

Fourth
Republic has natienal-^r
public utilities, coal mining, the

—

Corporation

Ad¬
has

been formed with offices at 67-71

Yellowstone Boulevard to engage
111 a securities business.
i,'

(zed

HILLS, N. Y.

Planning

'v"*~

Capra Opens

deposit banks and life insurance
SCARSDALE, N. Y.—Robert A.
companies, trans-Atlantic passenger snip¬
Capra i& conducting a securities
ping, also a substantial number of indi¬
vidual firms such as the leading auto'lo^;; business from offices at 6 Palmer

producer, and so on, all these on top "
previously ^nationalized
tobacco
industry, post, .telephone, telegraph and
railroads..» Presently^, the^ Fifth Republic
is
considering to divest itself gradually
of some-of its direct and indirect bold-r
of

Avenue/;-

engaging in a se¬
curities business from offices at
25 Broad Street, New York City
under the firm name of J. W. Scott
J. W. Scott is

Company.

ings

nominal

non-nationalized
value

such

given as ;l€0!r billion
lion).-,

plants.

The,

parties-- '»nns

frames

($320

iriiljiis

Maurice Friedman
Maurice
in

Friedman

a:Securities

York

City.

Skousen

Opens :

ing in a securities business from
offices at 2339% Honolulu Ave¬

engaging

nue.

Officers are Max B. Skousen,

President;

Joseph

Tomlinson.

Melvin R.
Blomquist, Secretary-Treasurer.

iohiW'illiam Street, New- Vice-President;

fices

—

and

In¬

Charles Guarria Opens
BROOKLYN, N. Y. — Charles
Guarria is conducting a securities
business from offices at 1077 New

York Avenue.

Janow

Opens Office

Charles S. Janow i3 conducting
securities business from offices

Mount

215

York

Hope

Place,

City. '

New
"

111.—The Executive

CHICAGO,
Committee

announced

has

election

Wheeler

-the
of

Woolfolk, Inc., New
Orleans, La., to membership in
the Midwest Stock Exchange.

W. C. Langiey

Branch

PHILADELPHIA, Pa. — W. C.
Langiey &
Co. has opened a
branch

office

220

South

16th

the management

Street

under

James

Sands.

Jains Westheimer Co.
(Special to The Financial Chronicle)

CHICAGO, 111.—Donald J. Dubow is now connected with West¬
heimer and
La

Company, 134 Sotith

Salle Street.

NATIONAL

AND

GRINDLAYS

BANK LIMITED

Head Office:

26 BISHOPSGATE,

FIRE & CASUALTY

STREET, S.W.I

13 ST. JAMES'S

SQUARE, S.W.1

Sto6k Exchange

Telephone: BArclay 7-8500
Bell

Teletype NY 1-1248-49

Specialists in Bank Stocks

13 St. James's Sq.; G»tL

Ins. Dept.: 54 rartttineat
St.; Travel Dept.: 13 St. James's Sq.; facome
Tax Depts.: 54 Parliameat St. A
13 St. James's Sq.

Members New York Stock Exchange

120 BROADWAY, NEW YORK 5, N

54 PARLIAMENT

Rd.,

Request

Laird, Bissell & Meeds
Members American

LONDON, E.C3

London Branches

INSURANCE STOCKS

Midwest Exchange Member

EARNINGS COMPARISON

Skousen Investm't Service
MONTROSE, Calif.

vestors.

Trustee Depts.:

Investment Service, Inc. is engag¬

business..from" of-,

1958

Bulletin

■

' the

offices

New York

Greater

A/ma/gamaiing National Bank of India Ltd.
and Grind/ays Bank Ltd.
■

Forms J. W. Scott Co.

large

bile

activities

(103 or thereabout). However, it comes out to 106%. The differ¬
ence may be said to represent a small doubt about the plan going
through, either because of the supervisory powers vetoing it, or
because the shareholders balk.

Ju" curities business from offices at

reversing

It is the opinion of the

Trust management that in respect to the trust

Trust and

BROOKLYN, N. Y. —Gertrude

name

price discrepancy at present between New York
Chemical. The latter is selling at about 61. One and
three-quarters times that should come out to New York's price

Opens Investment Office

from

Linden Boulevard under the firm

taxable

business units.
There is a

•

business

ties

to $4.20, or by about 12%.

—personal, corporate and pension trust—of the merged banks, the
whole might almost be said to be greater than the parts, or as the
bank puts it, "the trust facilities of the combined institution would
have greater strength and capacity than
is now possessed by
either of the two institutions separately."
/
The formation of Chemical New York Trust with its large
resources of over $4,300,000,000 will enable the bank to keep up
front with the country's expanding industrial banking needs. Also,
because of its size, it is expected that economies will be realized
as mechanization of operations is the better attained among larger

Iny. Associates rormed

mid-April,

year-end extra)

New York

is the fact

first

of Fulton Trust Company some years ago.

that conjf
siOUX CITY, Iowa—Investment
dence in the currency be restored.„ Associates has been formed with
Since January first of this year, offices in the Live Stock Exchange
the country's gold and foreign ex- to
engage in a securities business,
change reserve has been increas- Currier J.* Holman is sole proing every.single day.
Presently, prietor.% - %
/
important

case

Greater N. Y. Investors

poncnt was a very well integrated bank in its own right, its trust
business was considerably augmented at the time of the acquisition

;Paris7 representative,
T

Boulevard.

BROOKLYN, N. Y. — Mitchell
Garfinkel is engaging in a securi¬

Importance should be placed on the contribution by New York
1 Trust to the trust activities of the consolidation. While this com-;

Mahan is: in charge of the firm's
research department. Mr. Malle is

is well underway. With

held

costs

ern

Trust will

the meeting.

July 1 will be
extent, in the public sector. This admitted ;to partnership in Delais a real blow to the concept of field &. Delafield,
14 Wall St.,
the Welfare State, t
New York; CiTy, members of the
a

business from offices at 777 North¬

•

Surer J' M' HUgbeS'

vicious inflationary auto--becietary - e0Surer'
matism is jettisoned;* the escalan
,
£.
n p
.

Opens

NECK, N. Y. — M. L.
Gottlieb is engaging in a securities

appraiser appointed by a court, and in such a proceeding they are
paid off in cash. On what is probably an outside chance, that a
very large proportion of New York Trust stockholders elect to take
cash in lieu of going along on the merger, the Chemical Board of
Directors may, in their discretion, declare the merger off.
This
column expects a very high proportion of assent to the plan at

tors.

M. L. Gottlieb
GREAT

present stock have the right to object to the plan of merger, and
to have the value of their shares appraised by a court or an

np- «
JacquetRuett-^nTresto-ed a's

Gardinfer

formed

business.

gain or loss will result to the New York Trust
shareholder by reason of the merger and the exchange to Chemical New York Trust shares, except, of course, those selling frac¬
tions of shares resulting from the exchange.
Under New York State laws, shareholders of New York Trust

in a securities business.

has

Company with offices at 2001

Shepperd to engage in a securities

quarterly rate on the new stock will have the effect
increasing his annual rate from the present $3.75 (including the

ion

Hughes Securities

PECOS; Texas—Hughes Securl-

•

?hf°fnueantn/r ^ nfthe^nM

yet,

Counsel for New York Trust have advised that in their opin¬

isAthi

thing

LITTLETON, Colo. —Frank V.
Gardinier

early July to

60-cent quarterly dividend rate on the new
of the holder of New York Trust present stock,

plan calls for

In the

25-ccnt

City.

Form

Company.

Gardinier & Co. Formed

the 60-cent

Drew

New

of H. B. Crandall

the plan

be added to Chemical's.

Marie J.
partnerinvestment

has-been*""ship to-continue the
shifted, iii effect, from the shoulr' business of Charles H.

Ash Avenue under the firm name

Six branch offices and the head office of New York

countries;Continue Invest. Business

the budget; Their burden

The

•

FLUSHING, N. Y. —Harold B.
in a securi¬
ties business from offices at 140-50
Crandall is engaging

merger.

Trp

higher

Co.

Crandall Forms Company

On the basis of March 31,1959 data, the total capital funds
(capital, surplus and undivided profits) will be slightly in excess
of $384,000,000.

and L.-J. Smith, Secretary-

rates and

are

five

and Hirsch &

Completion of the merger will see 8,476,590 shares of Chemical
New York Trust outstanding, par value $12 per share. This change
will be made to provide a capital for the merged bank equal at
least to the aggregate of capital of the two components prior to the

Harry L. Smith, Presi-

are

borrower.

Cowen & Co.

formerly with

was

J5'- in oider Jo^ give- dent; Cfyd "W"

one

Joseph Rogers,
Secretary. Mr.

George A. Kuhnreich

of merger, on July 8. June 17 was the record
date. Under the proposed plan 1% shares of the new stock (Chem¬
ical Bank New York Trust Company) will be issued for each share
of New York Trust stock.
The Chemical Corn Exchange Bank
holder will receive one new share for each share of Chemical Corn.

■

French exporters an initial

bank to

The stockholders of the two banks will meet in

vote

Form H. L. Smith Co.

French

reich, VicePresident, and

higher total of capital and
surplus, the merged banks are in a stronger competitive position
vis-a-vis the other large institutions, for, be it remembered, the
amount of capital and surplus determines the extent of lending

-William S., Jackson Jr., Hamilton Management Corp., retiring
of President,
was
elected to the
p—board of'directors of the National

will be

York's banks, and as it gives us a much

down-at the

a
hefty 1.470. biljion
francs, 26% above last year; they

constitute

ecurities

business. Offi-*

™W

tary*

in the current bud-

appear

New
City, to

cers

Frederick R.eid, Mountain States ;
Co., Recording Secre-

^in-,

68rd

East

engage

strong impression that New York
be absorbed, given the right price atmos¬
a

vestments; (constructions

Inc.,

Street,

" f: f: So,1 it came as no great surprise when it was announced sev¬
the Treasury. The latter-also proDENVEBt, ,^Colo.—Lawrence 'Af " eral weeks ago that a merger plan had been negotiated between
vides funds for the expansion ol!Nowell,.:First National Bank, was % New; York Trust Company and Chemical Corn Exchange Bank,
private industrial capacity as well--named. President4 of the Denver
subject, of course, to the assent of the shareholders of both banks,
Society, of^ Security Analysts at
as for schools and the—corruptionand of the New York State Banking Department, and of the Fed¬
its annual meeting.
>
; :
eral Reserve Board, both banks being members of that system. It
ridden—public housing.' The pro¬
Other
officers. elected
were
jected 1959 deficit of 587 billion
goes without saying that the "liberals" promptly sounded off at
Don
C. De Vore, FIF Manage¬
their discovery of "restraint of trade" and other bugbears, particu¬
francs, about 8% mf- the budget,
ment Corp., Vice-President; Wilis
the
fiscal expression
larly at what they considered to be an assault on the competitive
of.„ the
Keynesian theory, still prevalent *ar£ H. 'Marsh, Denver U.
S. system in banking.
in
; \ s
France,
that the growth* of -^a *°n^ Dank^ Treasurer; FredWell, as we pointed out at the time of the Morgan-Guaranty
basic production cannot be left toTpssberg,. C o 1 o r a d o i merger proposal the reverse is true. The Chemical New York Trust
the "vagaries" of the profit motive,v ^a^idIla^ Seci*etary;_ and; consolidation puts that combination in third place among New
As

Co.,

phere: ^Indeed, the bank's 1958 annual report stated that the man¬
agement would consider any merger proposal made. In the early
1950's it was .announced that the bank would merge with Manu¬
facturers Trust Company of New York, but this plan was voted

^ NillllP RAW DtTI^K^

guaranteed

with offices at

York

had long been under

':y '')

y.,'

official Plan Com mission •|stillvhas ^
to.be borrowed

r<r»»-nTV,

Week

Proposed Chemical-N. Y. Trust Merger

huge-ex-^ |J

capital needed dor their
r

llAiiiiAii

-;-'t

pansion,

I %

450

This

(

:tae European Common Mar-..

taxpayer■•ran-

francs,

rates,

Kuhnreich

By ARTHUR B. WALLACE

ancU/fjci^^y a ^stable
st&ble
monetary standard,
pnonetary
T?YlT^m-kOO

>orting>
self-supporting^

will be formed

mentally-owned enterprises
become

Form Own Investm't Co.

Bank and Insurance Stocks

goV.e£n~-f..propensity;;; the;.,
ardCto;i^^^ef^', ^discipline.. • established -

the

George Kuhnreich to

;l^y ^the flight capital; the influx of foreign >
"funds, ;l|her^rehabilitation of*; the-'?

financed

and

authorities.1

(2867)

Nairobi;

Bankers to the Government in : ADSN.EMTA.
UGANDA, ZANZIBAR A

SOMALILAND

Branches in:
INDIA. PAKISTAN,

CEYLON, BURMA,

TANGANYIKA, ZANZIBAR,

ADEN, SOMALILAND

UGANDA.

PROTECTORATE,

NORTHERN AND SOUTHERN RHC

(2868)

The Commercial and Financial
Chronicle

Continued from first

I Securities

Salesman's Corner

tion

Saturday mornings being what finally sold him a $30 a month
investment plan, my twelve year
are, I usually just sit around
the house
and
go
through the old excitedly once again stuck her
motions
of
study and reading, head inside my study door and
ell of which is calculated to im¬ proudly handed me the following:
press the rest of the family with
"How to Buy Stocks"
the great weight of research that
"By John Button Jr."
is necessary in order to provide

they

them with

day, I

the

week

and

recent

dutifully pursuing the

was

events

livelihood. On

sat

the

child

securities

salesman,
and
have I learned
quite a lot about stocks and bonds

at my typwriter

from

stocks, studies them, and advises
others to buy certain ones. Then

trying to concoct
column, my twelve year old
stuck her head inside my work
room and said,
"Writing that col¬
umn again. I could write a better
than you do in a lot less
that work."

column

time and without all

"You skidoo," said I, "get out of
here and let the old man try to
think." With that she vanished.
took

look

the

less
is

know."

seem

Research

far cry today f rom the invest¬

sometimes he is not

who

knows

whether

"If

bring
want

you

profit.

that

will

the

industry

and

as¬

then

examination of its

the

back

influence

evitably

fundamental

door—in¬

and

economic

formance

financial

developments in an in¬
dustry require a careful examina¬
tion not only of the individual
industry's experience, but, more
importantly, of its ' performance
relative to that of other indus¬

and

market

valuation

the

industry with that of each

the

other

ment

industries of invest¬

importance. This measure¬
be in terms of the

ment

would

half

make

Comparative
factual

analysis

industry studies just
of company studies.
analysis

rests

information.

Therefore, it,
consistently
compiled

requires

which

the

cover

prime investment

period

provide
knowledge

General

industries

consequence

over

sufficient

perspective.
of the per¬

of
industries,
while
helpful, is not adequate.

broad

Security

analysts and invest¬
managers
need
industry

ment
data

economic

chemical

examination

industry

and

com¬

its financial record with the

pare

financial records

such

form that they can
"yardsticks" for doing
three things:

mary

few

of 32 other pri¬
American industries.1 These
from

progress at

broad

study

Stanfard Research In¬

your

yttrium

and

Having just finished Mr.
ton

forces

wjjl. get better.'"

preferable to begin

G. J. Mitchell Branch

Bur¬

"The Wall
ket

letters

ferent

"Chronicle"; management of Gordon Little.
Journal"; mar¬
'

from

brokers.

about

six

Arthur

dif¬

Weisen-<

berger's study of the Lazard Fund;
the portfolios of several better
known Mutual Funds to

see

they have been doing; also
port

issued

the

Government Growth

tended

to represent

analysis of and
sions
.

the

Certainly

what

full-brown

basis for conclu¬

chemical industry.

there

need

MINEOLA, N. Y.—The Randolph
Commercial Corp. is engaging in

1950—

securities business from offices

1952—

at 60 Third Avenue.

wfite a-real
as

sat

the

1953—

& Allied

Industrial

Animal

Products

Chemicals

Oils

Fertilizers

100

104

103

105

100

101

110

112

121

126

120

136

124

134

101

from offices at 515 Madison Ave¬

the

nue, New York City. Partners are
Francis J. Walters, Jr. and Anne

Sanborn.

90.1%

and

more
over-all in¬

the index of 143 for all industrial

production.

This

well-known

secular

confirms

130

pated equally well in this postwar
growth?
The Federal Reserve Board has
the industry
into eight
principal product groups. Produc¬

five
seen

these

—

124

111

132

121

112

Reserve Board Index of Industrial

110

the

that

1957,

Production

chemicals had risen to 203 by 1957
was far ahead of total indus¬

10.6%

and

Butadiene

10.4

trial

16.9

Phenol

8.8

Methanol

8.0

14.3

Isopropyl Alcohol

4.2

Acetone

production.2
Industrial

From

3.9

the

12.5

Acetic Acid

3.8

considered

11.9

Acetic Anhydride

2.3

11.2

drug

3 A

Index
the

25.1%, the 1917-195; rate

Note

Industrial

143, soap stood at 112, paint
at 121, vegetable and animal oils
at 130, and fertilizers at 132.
In
contrast, the index for industrial

was

It may

129

Formaldehyde

the average growth rate for 1947-1957
the 1951-57 rate a modest 7.8%.

developed

groups.

from Table I that marked

divergence exists in their produc¬
In fact, only one of
the five groups has had higher
output since 1951 than the Federal

14.6
13.4

—

the

Have all of the major segments
the chemical industry partici¬

Production.

25.1%

the

trend

tion records.

(1947-1957)

-Although

substantially

than

1947-1957, the index of chemical
output stood at 184, or 29% above*

Board.

Sodium Dodecyl Benzene
Sultanate"

Ethyl Chloride
Ethyl Alcohol

been

147

Major Industrial Organic Chemicals Comparative Growth in
Production Annual Average Growth Rate

sales¬

met

has

pronounced

dustrial production.
To illustrate,
at the end of the 11-year span.

TABLE H

usual

prospect who couldn't hear and
by sheer dint of his perseverance

tion

110

132

it will be found that the postwar
growth in total chemical produc¬

112

Board

compared with the Board's Inde^.
of Chemicals and Allied
Products,

when

Ethylene Oxide
Ethylene Glycol
Form Walters Associates
Styrene
Frank J. Walters Associates is Ethylene Dichloride
conducting a securities business Toluene

Reserve

Industrial Production

122

Reserve

competition, public
psychology, high prices and low
yields, Castro, Khrushchev and
company today? As I was about
ready to give up and write my

classifications.;

Federal

112

column

the

140

196

Inc. is conducting

Index

137

203

securities business from offices
at 2775 Broadway.

major product

production
standpoint of

the

tion indexes have been

177

Broadway, New York City.

over-all

from

for

184

Federal

then

107

143

Sonn e:

terms

108

143

in
and

112

1956—

P. J. Schmitt Co.

has long been character¬
by its secular growth.
This
growth needs to be analyzed first
ized

112

113

CHEEKTOWAGA, N. Y.—Peter

The output of the chemical in¬

dustry

146

108

type¬

not, however, provide the desired
consistency.

112

125

the
trade—could be used. They would

113

118

which

familiar

106

116

1957—

111

125

market.

•,

some

—

divided

122

Mitchell Rosen Opens

124

talk

103

104

124

Mitchell Rosen is conducting a
securities business from offices at

are

well
as
the production
indexes
compiled by the Board, are ad¬
hered to
as
closely as possible.
Numerous,
alternative
product

101

118

tific research,

couldn't

Products

116

J. Schmitt Co.,

who

101,

105

184

the more confused I be¬
Just how does anyone make
sense out of this
jumble of scien¬

man

and Allied
Paints

153

solid

how

Soap

154

industry

industry.

Veg.and

148

writer,

about

167

dis¬

1952.

125

came.

stint

data is

herein.

M. W. Leland, "Some Economic Char¬
acteristics
of
the
Chemical
Industry,"
Chemical Engineering Progress, October

139

stock

here at

1951—

chemical

1955—

during

week

1949—..

point of
output data

basic

to
the
Federal
Reserve
Index of Industrial Produc¬
Since consistency is

might

1954—

the week (closely), I had the feel¬
ing that I was sufficiently charged

"*V

may

familiar

the

chemical

re¬

on about
ten different stocks, and watched
the market about ten hours

But

■

Production

1947—

obtain

reference,
for

classifications

Economic-

NAM

vs.

•

Year
.

Randolph Commercial

comment here on the fact that the

cussed

Chemical

Industrial

analyst

Production Information

(1947-49:= 100)
Total

1948—

Form

Growth, special reports

this

industry

the

to the problem of organ¬ tion.
equally
izing industry information for use important, - the
classification
of
by security analysts and invest¬ chemical products which the Fed¬
ment managers.
They are not in¬ eral Reserve Board employs, as

Comparative Chemical Production Indexes

the

Street

which

proach

TABLE I

Crane's

monthly's, read

have' their

do about it he says, 'Don't worry,

excellent book last
BEL AIR, Md.—G. J. Mitchell,
week, "The Sophisticated Inves¬ Jr. Co. has opened a branch office
tor," studied two financial bi¬ in the Lutz Building under the

Economic

now

well-known impact on the return
earned on total capital. Thus, it

thing-a-ma-jig-

own

him what to

from

launch such further organized re¬
search as he considers
necessary.

stitute, are for the purpose of in¬ keyed
dicating the framework of one ap¬ Board

significant

going to be worth 25.

£er).

limitations, it would perhaps

be better to confine ourselves
this

tabulations, which have been

taken

pound

time

each

the

Comparative

much

demand, and price
of the major
chemicals.
Because of

for

formance

be used

ask

supply,

very

when I

broad

situation
industrial

de¬

tries.

the heart of

„

and

lar growth, (2) an examination
of
the
primary product

over-all

industry consists of a
complex and heterogeneous group
outset some basic concept is nec¬
ously look up the meaning of these
of companies—it is
probably the
Get All Information Available
essary in order to compile essen¬ most
jawbreakers.
widely diversified major in¬
tial information in an orderly and
"If
you want to buy a certain
dustry in the United States.
In
Finally, giving up in almost
effective manner.
:
hopeless frustration, I turn to my stock, you should find out more
fact, as one executive has put it,
financial records and my manuals. about it than you can learn in the
Starting from the premise that, "There is no clear-cut agreement
an' investment standpoint, as to where the chemical
There I see what has happened to financial pages. Some good ways from
industry
a
find
out
more
information the most
important single fact starts and where it ends."2
subject company dollarwise in to
the past. I note the price range of about it is to get a pamphlet on about a business is its earning
In view of the diverse nature of
its securities, I put the pencil on the stock if the company has one,, power. The fundamental measure
the output, it is essential that in
Its net earnings, on its capital or ask a stock broker about the of the earning capacity of an en¬
some
manner, the chemical indus¬
structure, and the usual indicators stock. If it looks good to you and terprise may be taken to be the try 'be
segmented from an eco¬
we
relationship of earnings to the nomic
supposedly knowing men of rises, I would suggest buying it.
standpoint. The task is not
total capital invested in the un¬
Wall Street use to evaluate such
"Also, my father reads all the
only difficult but it also involves
things. But there is something we time, and studies a lot. The last dertaking. Moving forward from
the risk of incompleteness
and
don't
know today,
and that is stock he bought for me was at this concept all financial data can"
then be built around and tied to
what is coming next in molecular,
1 Space considerations made
it neces¬
1514, finally it went.up to *1812,:
sary to exclude the graphic material and
beam
return-on-total-capital
techniques, . tropospheric, I told him to sell but he said not the
ap¬
numerous
tables.
Nevertheless, the na¬
scatter: systems,
:
4' [^' '■ ■
or
long • range! to do so because it was someday proach.
ture of the most
14

the

carried

classifica¬
product anatomy. The next major tions, and
(3) an analysis of the
in¬ fir-and probably more important- major
inorganic,
organic,
and
vestment management.
step is to measure and compare end-use industrial
chemicals. The
The analysis and appraisal of the sales, capital,
earnings per¬ objective
is
to
determine
the

—coming

continuously read the
financial
pages
in your news¬
I
read
about
analogs, digitals, paper. Study the stocks. If you see
(1) Analyzing a selected indus¬
diodes, enzymes, microorganisms, a stock soaring high, study that try in terms of its own record;
ultraviolet, sonics, cosmic butter¬ one especially. The stocks that
(2)
Appraising the industry's
flies, cesium, parabolic mirrors, fall you should dismiss from your
performance in terms of the ex¬
precision, inertial navigation sys¬ mind, unless the market is having
perience of other industries; and
tems, voltage references, spectron- a few bad days and many stocks
(3) Evaluating the performance
ie
colorimeters,
hydro-acoustic are dropping. Stocks at a trend
of a specific company in relation
transducers, spectral emissivity, study until you see whether they
to
that of the industry.
cryopumping, ambient tempera¬ rise or decline. Do not study
tures, cyrogenic devices, neutron-, stocks for several days but for
4, Basic Concept ; ■ 4
sensitive isotopes, and hundreds!' a few weeks. When you can
pay,
We arc
all familiar with the
of such mysterious methods, pro¬ or want to
pay less than 29c for
ducts, tools, and results of scien¬ a share, then don't bother consid¬ volume of financial data which
can
be
tific
developed in regard to any
operations
conducted
by ering' the higher priced stocks,
industry.
American business today, I labori¬ until you want to go higher.
Consequently,
at
the

microwave transmission (and don't
write and ask me to define these
dillies or I'll suggest you obtain

through three progressive stages:
(1) a review of the over-all secu¬

not

interested in buying, it is a good

policy

undertakes

studies

Data

analysis

industry

thought

reading
and
study
we
was a must only a decade
finally obtained a good desk
size collegiate dictionary. Now as

pects

chemical

analysis

which reviews first the broad

Economic
economic

ment

ego. I

individual stocks, industry

economic

■

The

You

want to buy stocks, it
you
want one that will

one

study with

decisions in regard to

and also extends

cline when you buy it. But which
one
should you buy? If you are

investment

Buying

you

means

companies.

industry can it be
orderly and ef¬

fective manner.

start

stocks

sure on

Stocks—First Step
In

individual

Thus, through their influence

data

Study

this complex
analyzed in

composite experience of the major
morning to the postwar growth in
corporations in each industry. We
output.
term these composite series "in¬
An examination of the
product
dustry yardsticks." Finally, there
anatomy of an industry should
should be a graphic and tabular
have two primary goals.
First, it
comparison
of
the
industry's should provide
comparative infor¬
primary corporations in terms of mation in such a form that
the
these yardsticks.
security analyst, in making indi¬
vidual company
Illustrative Industry Study
studies, can ap¬
praise as effectively as possible
To
illustrate this comparative the
major items in the product
approach to industry analysis, I mix
of
each
firm.
Second,
it
have some tables which
provide a should provide a sound platform

buy or sell
stocks on oil or gas, automobiles
etc., whether to buy any stocks
or to just sit back. Stocks are the
hardest things to know about.

himself,

papers,

magazines and books I have been
perusing this week and said to
myself, "I wish she could write
it, because the more I read the

him.

Thursday, June 25, 1959

oversimplification.
Nevertheless,
only by progressively
segmenting

Appraising the Chemical
Industry and Its Components

By JOHN DUTTON

Home Work!

page

was

topped

industry is ordinarily
separate
and
apart

provisional Federal Reserve Board
for drugs and medicines covering

span

output

Chemicals

investment standpoint,

1947-1954

indicates

that

the

this segment of the industry
that for industrial chemicals.

even

yolume 189

from

Number

the

Paint,

and

oils

The Commercial and

11%; followed by synthetic rub¬
with almost a 10% growth

industry."
and

ber

vegetable
also

are

Strikingly,

rate.

man-made

10% to nearly 12%. These three reasons for the marked differ¬ fibers, antifreeze, and industrial
chemicals, plus phosphoric acid, ences in individual production explosives were all close to the
4% growth rate for over-all in¬
"chemical companies" cut across were well above the 8% growth
performances, let us turn to the
dustrial production.
these industry boundaries.
Some rate for all industrial chemicals, third group—the major end-use
are substantial
It is not possible here to ex¬
producers of drugs, Sodium hydroxide's rate approxi- chemicals.
others manufacture paints, and so mated
amine the more complex end-use
that
for
all
industrial
Industrial End-Use Chemicals
on.
In a broad sense, it may be chemicals. Sulfuric acid had a rate
groups or to determine the vari¬
said that the firms ordinarily con- close to the postwar increase of
ations
in
Seven
growth rates in the
end-use
groups
have
sidered to be "diversified chemical 4% for over-all industrial produc- been selected. Ranked in terms of primary products comprising each
companies"
are
more
production value, they are: man- group. It may be sufficient to
typically tion.
those
which
however,
the
following
produce
predomiit is not within the scope of this made fibers, synthetic plastics and note,
treated

separate industries. But,

well

known

that

many

nately industrial chemicals.
The

classification

chemicals"

paper

"industrial

examine

bring

thus

and

each

product

the

primary

out

behind the differences in
of basic,
intermediate, and end- growth rates.
But in general it
use chemicals.
While this hetero- may be said that—as in all indusgeneous aggregate is an essential tries — product innovation, techstarting point in an over-all an- nological development, and scope
alysis, it must be dissected into its of use have had their varying immajor components in order to pacts on demand,
examine

the

covers

the

product

anatomy of
industry.

chemical

The

key

have

large number factors

industrial

been

chemicals

classified

into

three

broad groups:

(1) seven major inindustrial
chemicals
of

organic

importance in the manufacture

finished

chemicals, (2) 16 major
organic chemicals, and (3) seven
major end-use products.
These
last chemicals

are

ucts"

they are not subfurther significant

that

"end-use prod-

jected to

any

chemical

transformation.

Using
the term broadly, the next step is
"fabrication," that is, mixing to
form paint, molding,
extruding,
and

This

on.

fabrication

either inside

occur

may

outside the

chemical industry.
T

The

chemicals

Inorganic

Chemicals

industrial

seven

selected

inorganic

for

Industrial Organic Chemicals
Significant classification
and
other Problems are involved in
an analysis 0f the organic chemicals- Nevertheless, it is possible,
although subject to wide differences of opinion, to select a meaningful group of basic organic industrial chemicals,

Recent data

importance
in
relation
major end-use chemicals

Although

these

outside the Federal Reserve

are

Board

Classification,

their

A graphic analysis of the post-

production experience of the
seven industrial inorganic chemieals reveals

wide divergence in

the growth rates.

The

growth

the

rates

over

of
1947-1957
range

is from a low of about 2%
annum for soda ash to 16% for

span
per

estimated

4 Based

Handbook

Economtc

Research

study

the

Chemical

Stanford

staff

institute.

table

Aircraft

21.3%

Proprietary Drugs

20.5

Automobiles

19.5

Apparel and Accessory Chains

14.6
14.6

Ethical Drugs
;

—

Auto Parts and Accessories-.—:

13.1
13.0

Building Materials
Chemical, including du Pont
General Industry Machinery

12.8
12.7
12.4

Corn Products

—_

Oil
Glass

—

Packaged Foods

11.9
11.8
11.5
11.4

Toilet Preparations

Electrical Supplies

Copper

Grocery Chains
Rubber

Growth in Sales

7.9
6.2
5.9

Textile Fabrics

5.7

Packing

table

5,553

Auto Parts and Accessories
Paper and Allied Products

Distilling:,
«

___.

General Industrial Machinery..
Chemical, excluding du Pont

r—-

Chemical, including du Pont

;

Proprietary Drugs
Automobiles

Earnings Rate

2,014

1,006
1,005
920
778
756
•.:
754
744
744

;

10.3

115

1938

6.7

5.5

1939

____
'

11.1

7.8

122
,

....

142
129

12.0

10.7

118

1942

9.4

123

602

11.6

11.1

9.1

122

569

1943

:____.

108

The

developed
financial service.
of

tests

the

composite

the

chemical compan¬

(1) in terms of its own 22 year
record and (2) in relation to the

ies

composite experience of the pri¬
mary units\in each of more than.
30 other major American indus¬

Metal Containers

528

1947

14.3

110

499
475
470

1948

13.7

15.0

Agricultural Machinery
Mail Order Houses
Apparel and Accessory Chains

12.2

111

15.0

113

448

1951

13.4

12.6

106

Glass Containers

447

1952

10.7

11.0

Toilet Preparations and Soap

9.7

11.1

431

1953

5 For

tries.

Growth
•

In view

welllet us

of the industry's

aspects,

growth

known

begin with an examination of the
Chemical
Industry
Sample
in
terms of the relative growth in

Continued

page

8.8

11.1

1955

11.6

12.9

"Chemical

1956

11.0

12.0

"sample," is used to designate

414
398
386

1957

9.9

363

10.9

Corn Products

1935-39

LQ.9

136

339
277
274

8.0

Cigarettes

12.1

12.4

10,1

11.6

ical

that

of the selected

9.5

Meat Packing

Commission.
71% of

major corpora¬
in
a
"chemical

sample
data
are satisfactorily representative of
broad
industry experience. Ac¬
cordingly, the next step is to ex¬
amine the composite performance
Numerous

indicate

13.0

1954—i_

1947-57

1953-57

____

com¬

seven

industry" classification

11.9

Limited-Price Variety

the

included

tions

111

sales

125

;

sales

The total also constitutes

9.0

Corporation.

of the relative

curities & Exchange
the

7.5

16.9

Co.

panies in 1957 totaled over $6 bil¬
lion, representing approximately
60%
of all industrial chemical
sales as estimated by the Federal
Trade Commission and the Se¬

9.7

13.5

Company

size of
substantial effect
on any composite figures, industry
averages have been computed in
two
ways—both including
and
excluding Du Pont..

8.3

Corporation

du Pont and its

1945

1950

financial

Cyanamid Company

Carbide

Because

1944

1949

com¬

Monsanto Chemical Company

563
531

1946

measuring

for

Union

564

.__

corporatethe

Hercules Powder Company

Packaged Foods
Grocery Chain Stores

Steel

Daily Products

11.8

12.6

Copper

138

1937

168%

1941.

Department Stores

9.7

1940

Grain Mill Products

6.9%

13.4

626

•

11.6%

1936

687

Oil

1935
.

Rubber—.

Percent of

Industries

Building Materials
Ethical Drugs

Industry Composite

(ex. du Pont)

9.3

Chemical Rate

in the well-estab¬

are

andprimary
Accordingly,

by a well-known

Capital

Composite

Chemical

be selected.

E. I. du Pont de Nemours &

;

Industry

Dow Chemical

(1947-1957)

718

Textile Fabrics ___2r____2__

would

question immediately arises as to*
how a manageable' and, at the
same time, representative sample

;

Earnings Rate on Total

of them
Thus, the

portion
impractical.

significant

American

Total Capital for Chemical Industry Sample
Rate for 33 Industries

that to undertake the analysis

Allied Chemical

As Percent of Composite

724

this is such

performance. Using this criterion,
following seven companies
were
selected
to
comprise the
chemical industry sampled

4.0

____

can

the industry. In most instances,
a substantial number

8.1

—

Department Stores
Distilling
Agricultural Machinery
Meat

terms

performance of an

be measured only in
of; the companies making

industry

sticks

8.1

Metal Containers

The financial

the

8.8
8.1

Grain Mill Products

of the industry.

formance

posite data for the major units in
each industry listed on the New
York Stock Exchange should pro¬
vide satisfactory investment yard¬

10.1
9.6
9.0

Limited-Price Variety

Electrical Supplies and Equipment

the
the economy,,
as well as those with growth ratesfar in
excess.
Moreover,' infor¬
mation organized in this manner
of

growth

entities.

'(Average Index 1953-57)

Radio and Television

with growth rates well below

lished

10.2

—

Radio and Television

fact, the composite

styrene)

chemicals

industrial

all

for

omy. Nevertheless, there were a
number of major product groups

10.3

-—

Chemical, excluding du Pont
Dairy Products
Cigarettes

growth rate for the 15 or-

Aircraft

and Soap2
and Equipment

Steel

(excluding

rate

which is double that for the econ¬

vestments

12.1
12.0

Containers

ri°d is shown in Table II. Note
the widespread divergence in the
experience
in
the
individual
chemicals. Furthermore, the
growth rates for many of the
major industrial organics have
been significantly higher than for
the major industrial inorganic

industry canbe measured only in
1947-1957
production
growth

By far the predominant portion
of institutional common stock in¬

14.4

Nonferrous Metals

10.9
10.7

annual

ef¬
ap¬

can

(Average Rate, 1953-57)

(1935-39=100)
,

Comparative Industry Earnings Rates on Total Capital

7:V'

11.3

table

type of economic probing
product anatomy of a basic

Mail- Order Houses.

Comparative Industry
,

This
of the

Paper and Allied Products

praisal of the product mix of the
corporations in an industry a»
well as his appraisal of the in¬
dustry itself. Furthermore, it will
aid the analyst in avoiding the
pitfalls of unduly broad generaliations. For example, the chemical

duct

each chemical in the postwar pe-

games

billion

$4.9

1957.

The production growth rate for

chemicals.

potential of each major pro¬
or product group. Neverthe¬
less, sufficient material has been
presented to indicate (1) the an¬
alytical approach employed and
(2) the wide variation in the post¬
war production experience oil the
major chemicals,
and

jumped from $2.6 billion in 1950

intermediate organic chemicals
products
company covered by the Handbook analythe greatest opportunity for profit sis- Thus> there can be no doubt
as well as growth.
Accordingly, as to the relative importance of
the
relative
production
growth the selected industrial organics.
rates for the individual chemicals

—8.5

except alkyds

the

the, analyst's

increase

dynamic

war

•

fectiveness

general

Thermosetting plastics

information

develops

should

may be readily supplemented by
Important as the postwar pro¬ the security analyst to the extent
duction experiences of each of the
special situations or other factors
major industrial chemicals may require.
,2. ' ' •
V
*'/
chemicals
constituted
approxi¬ be, they are, obviously, only part
"
*
Financial Data
mately 50%
of the production of the picture. If time permitted,
Having
examined the major
value of nearly 80 major end-use the
consumption
pattern,
and
chemicals
(excluding
medicinal price
characteristics
of
these products and product groups in
an
industry,
the next, and even
chemicals
would
also
be
reviewed.
chemicals). It is also interesting
to note that the production value Then we would have a solid basis more important, consideration is
of
the
seven
end-use
the profitability the comparative financial per¬
groups for considering

im-

gate production value of 51 major

Alkyd resins

industry
which

However, according to
a
past study by the Chemical
Economics Handbook staff, in 1950
the production value of the seven

Portance warrants their inclusion
here.

of 88 major inorganic chemicals.4

important.

all
not

avaliable.

chemicals

$1.4 billion in 1957. This amount
is in excess of 60% of the aggre-

are

to
are

17.1%
8.8

Thermoplastics

to their aggregate

petro¬

butadiene made from

and

their value constituted nearly 35%
of the aggregate production value

it is the
which offer a

experience between
types of plastics:

the three major

group

analysis
are:
sulfuric acid, chlorine, amAccording to a tabulation just
monia, phosphoric acid, nitric acid, released by the Chemical Ecosodium hydroxide, and soda ash. nomics Handbook staff of StanIn terms of production value, they lord Research Institute, 14 of the
are the most important chemicals
industrial organic chemicals had
in the inorganic group.
In 1953, a total production value of nearly

Typically,

differences in

resins, synthetic rubber, antiknock
agents, industrial explosives, syn¬
thetic
dyes,
and
antifreezes.

16
The postwar growth rates for
chemicals has been established,
the
selected
chemicals
end-use
With two exceptions, all of them
range
from a negative rate of
are
included either directly or about-3% for
synthetic dyes to a
indirectly—through their derivahigh of almost 13% for synthetic
lives — in the Federal Reserve
plastics
and
resins.
Antiknock
Board's index of "industrial chem- agents were second with over
icals." The exceptions are styrene
Recordingly,

leum.

Industrial

2»

(2869)

Financial Chronicle

phosphoric acid. Ammonia, chlo- 10.5% compared to an average of
rine, and nitric acid enjoyed in- 9% for the inorganics.
sometimes creases ranging from slightly over
Again, without delving into the

"chemical

soap,

animal

5858

ease

reference,

Industry

Sample,"

the
or

term.

simply1

the com¬
posite experience of the selected chem¬
ical companies
in order to distinguish
from the experience

industry.

of the total chem¬

The Commercial and Financial Chronicle

(2870)

Continued

from

page

Thursday, June 25, 1959

in^hrnaH llvLi a+tGr to c,0I?sljder' a specific industry the increase in per capita which was largely the
ctiiriioc' i/ f i156*
induj- IJS sales and total capital against result of Drogressive shortening
luck* in cpnilS m^us?ry yvrd- the increases for the other indus- of the work-week and work-year.
trv

Appraising the Ciemical
Industry and Its Components
sales

and total capital and,

then,
take up the earnings performance,
Sales: We have compared the

but if Du Pont is excluded,

ttt^
industry has

tart
ical

illustrated

tewwwe ass
with

the

rate drops to 10% and the industry ranking drops to 23rd place,

growth in sales for the Chemical

material

vital

the

praisal of individual companies
p

Summary

to year. Hence
needs to be on a
period basis. For present purposes,
the five-year period from
1953
through 1957 has been selected
as the terminal span and two different base periods—1935-39 and
tially

from

year

1947-49—are used.
It

can

that

seen

along with that of several other

industries,
somewhat

capital

Table

III

expansion

and

erated depreciation.
examine

the

their

from

has been
depressed
by the already-cited

the

industries

1935-39

with

In the

ranking

regard
return

average

total capital.

accel-

Consequently,

relative

1935-39

First

pe-

return on total capital of the in- earnings alone
in

duStry in terms of, (a) the indus- ^productivity

with total factor

the private econ-

ky s own record, (b) the |)Wform-;:bmy, Tt can be seen clearly
?nCe -of each of the other major:, real average hourly earnings

that

nomic

variation

the production expe-

Declining Return -on Inflation ...1

ratios, the security, .analyst has 'a":

h?8^'8 major full comparative revievy 'of the iii--1' Since World War II, and,, in
rtrtrom' ^ determined, dustry. Then both the analyst and' some other periods, real average
nntn,./
material of investment managers haVe -not hourly earnings grew even faster
5SJ slJPPorted by /only the basis for a careful" eval- thah-output per unit of labor inice>. 17and Proflt uation of the record,"-the pfesent -put;? This was associated with a.

products

mav

rarptniiv

Chemical.

the

"km?
Mscoar ^artrssssrt
Third, through analyzing the' comparing real average hourly

anv

to
on

tion'telfu^by'h^
m'ueh^ret
♦mucn.
.reaJ

closely the secular growth anri

have
Amenc?n industries, and (c) the risen faster than total productiv90mP°s^e experience of all of the dty. This is possible, because real
lndustries> the relative' earning compensation per unit of real capinformation in
industry
power" of.: the industry 'may * ber'Jtal-has risen less than producTherefore, I should like to sum-' ^eaddy determined. Wheilthis in- tivi'ty. ' This result is not surprismarize them.
formation is supplem&iied-' with ringwhen it Js "remembered" that
thrn'.iffh
similar analyses of the profit mar- capital grew', much faster than
noSnSJ
! f
T
depreciation,
capital turnover;
•'i/\,.
j,
anatomy of J industry,
the ginand '/other
significantfinahrnb Tstbof
' " input.
*

In the 1953-57 span — and for
Three broad analytical nrinH
Industry Sample with growth in most of the postwar period — the pies have been employed in this
sales for each of 31 other Indus- earnings rate on total capital for
industry review
They are aDDli
tries. Sales can fluctuate substan- the
Chemical
Industry Sample, cable to the development of bade
the comparison

ing

Industry riod, the inclusion or exclusion of thic
Sample's average sales index for Du Pont had little impact on the pniiQiimntinn
1953-57 <based On 1935-39=100) composite rate of return and, ex- H-itn
is 756 if Du Pont is excluded and eluding or including Du Pont, the
the effectiveness
analyst's
744 if Du Pont is included. Thus, Chemical Industry Sample stood
appraisal of the product-mix of look forthe- industry,- J>ut-,aIso
COririant rat of return-on
depending
on
the sample, the sixteenth among the industries,
chemical
industry stood either
any ltseIh as
praisal of the performance 'of^^ih-'^run.' - I suspect that the relative
seventh or ninth among the 32
Exemptional High Rate of
becond, through measuring for dividual companies \yithin it' n ? movement of factor prices, and
industries.
Because
of
possible
Return
;;-labor and capital shares in the nadistortions arising from the use of
The
preceding
data
indicate
-v
fioaal income, are the result of
the prewar base, growth has also that, contrary to the
generallyContinued
from pacje 11
: broad market forces. But the sigbeen computed in terms of both held opinion, the chemical indusV',
.* nificance
of the1 real average
a
1947-49
base and the annual try does not earn an
exceptionpostwar growth rate. On either ally high rate of return on total
basis
the
Chemical
Industry capital.
It might be concluded,
..W
r-j-4'.
increases' in current dollar averSamplei stands within
the top therefore, that the investment at-

of'^he

Prions in

^^
Lely

fat"s-f ancJ,the

a'retel

well valuable yardsticks' Torches apv-fnvested capital over the long

industry

•

■

.•

Our Productivity, RecoriL

ekht industries.

tractiveness

chemical

relation to the other major
American
industries, the
sales

panies does not lie
high rate of return

performance of the Chemical In-

much in

the real capital stocks in the several industries weighted by their

dustry Sample certainly places it ings.
Two
of
these
attributes
in the high-growth category. In mentioned frequently are:
(1) the
terms of year-by-year expansion ability of the industry to maimin sales, the increase for the in- tain, across time, a
satisfactory redu^try was most pronounced in turn
on
a
rapidly
increasing
1950 and 1951, and, again, in 1955 amount of capital and
(2) stability
was

The

1956.

and

due

1950-51

increase

primarily to the Korean

1955-1)6 increase represemted nlmost entirely an expansion

volume.

been discussed.

capital

earnings
in

rate

1953-57

In spite

./total

10.1%

excluding Du Pont,

was^ 576 ,aml Sample is maintaining
RU fu nt XlaS 523i19?5- torily its return on total

39=100). On these bases, the industry Stood either seventh or II

industries^ t f

o.rlol
average

an..-Annual
trv
try

An examination

tions in the return

thf
°UtpUJ
?ales> and dollar

capital pr--rising ;
of which results
capital"is'in*
nnfavorable1 consequences
eluded With labor input in "the de-v for^ tlTC 'economyr-as a ; whole if
nominator of-the ratio, the-rafe of they P^sist'

pared with

in line with past experience

satisfaccapital.

of the fluctua-

total capital,

?Hmicals'
amount of earn-

i?flrf0™hntb
hjgher. In fact, onboth the althouSh
jn
is

there are cross-currents
facts, the chemical indus-

the

die

input
-

was,

rate ings leads
to the conclusion that,

growth

considerably more' than
labor input—manhours worked in
the various industries weighted by
base-period average hourly earn-

base-period

rates

return-in-

creased

0j particularly rapid asset expansjon and heavy
depreciation, the

close to the 1935-39
average sof
not ebb and How in a manner
10.9%.
(For the entire postwar
similar to sales, a single year can
span — 1947 through 1957 — the
be used for comparative purposes.;,
average earnings rate was 12.1%.)
In 1957, the total capital index for
From this
information, it would
the
Chemical Industry -Sample,
appear that the Chemical Industry

age

output-capital .ratio"has,"actually

Prkes —both

Wlierr "this

declined somewhat'
large increase in

earnings.

average

;

Capital: Since the amount of
capital invested in a business does

The rapid growth in capital has

situation^and the; marked rise in already

prices. The

earn-

1' 0

"JlQUr-,'- VOCS aI IlOOK

a
.

capital

some other attributes of

hourly earnings that are consktent with a stable price level.
• ••
-'i Increases that exceed a certain
astonishing incr^se^i^fe^fl^
are inevitably associ3% a year on average so that^the ated with either a declining rate
ft;'J/1

com-

2.5%

year average

Saidof 'eapi-

to the

tal per manhour.

,•!

T/u

ar Ai' W(r dispersion of total factor produc-

thesis!;;

DrodfrT WOrId War '• total

11 d!d-in
garIier
'measure'is virtually hack ih.Jine-^^eccSofh^as^^a^^y-hole.
since,
1919 with its longer-term'trend
Pnrt
a -w-noi^ but
out . short-

rieeiriSc
?<J
decades—2.1%a
9

the

geX

shall

are

experience, I
subsequent re-

the 1919-1957 period
■hereof.
thereof.

portions

1919

recent

confine

mnrirc

year

after

In tte

fr^ds

J"cre?fed. at^. a faster even the output- per.-,manliour

relevant

Productivity; m the economy ■

;

there

was

^ riational mefi^^, ; _ ; ; /
^ jxamplef factor prothe ductivity and output per unit of

-sigfiiftont-:'<feibp';jn-i

the-productivity i-atiosi after
war. -

labor input in five major : indus-

trial- segments: Farming showed

These -- observations.,
observations:; Underline
These
linderline

iess"than average increase over
period changes w ^ 01 e
period ' 1889-1957/
—particularly in the partial pro- ? although there - Was a notable
ductivity ratios, should 'not'
be;^ccele,,?tion after 1937!. Manufaca

the fact that short

Partial and Total Productivity
Ratios
,
.

Since

taken as^indicative of bhanges in ; juring/and-raining sho\ved aptrend. Year-to-year fl^ctuatiopS. proximately average increases f
are influenced to^a-Jarge^defeiee . around -2%- '• a;^ye*ar.:vN°te;
dustry Sample has had a
pro:
/
business cycle. Regarding ,acce],eration * in
nouneed relative increase in total
manufactunng
the^iostwar
nerind^e'dehati'h/J
a year.
The difference; reflects a the average
capital as weU as in sales. The
mo\^nei^:<)f .butpm - pr(jductivity in the 1920s. TransBefore
leavtog he^earnfngs pei
continuing 1% a year increase in Pfr nianhour over i the Phases
years
of biggest increase were
f
ppr^ation
and
public
utilities inf ™oi®.leaving theea mn;gspeicapital per unit of labor inputs the cycle, the r
cleariy 1952 and 1953
at|°. ,eyejs "Ptl P creased their productivity at rates
{rSaSe
re
addlSonal
Output
per
manhour
rose by 2.6%
The foregoing analyses of sales
dJf ?nes som?xynf
^!°£; ^ .Avell above 3%: a . year. Rough
factor to be considered.
It is the a year. The 0.3 percentage point the boom and the
and total ^capital ^clearly substanearly.;-es\^ipate^ for - the trade, service
annual relationship of the rate of difference between
this
and
the
recession.
But
tiate that -the chemical industry-restarts,-insi
andix finance
segments; indicate
return for the sample to the com¬ rate
of increase
in
m
output per XV1C "ic'vuin
ouiput
conh'acjion is^
* 1.5%* a year increase, well -below
as represented
by the composite posite rate of return

•latter
;

bases it stands

Accordingly, the

third.

•

eniovs

Chemical In-, whether
1

—

/tahilitv

moderate

there

has

been
ween

has

anv
any

labor

1919, output
input rose at

rate

2.3%

per
pci
an.

unit
unit

oi
of

average

year, .while the
output capital ratio rose by 1.3%

the^Ts

ixicj-cast;

for all of the

record of Hie selected companies

^a^high growth rate. However,

carfEdtathe
capjxaiis xo oe meaningiui
to xne

investor, it ™ust be translated into

major industries across the last 23
years
^ relationship may be

tl0m TaWf V which sbows

chemical return as a
percent
of the composite return.
(In addi-

fo^the'chmnical Ind™"^ Sample P°site rates tor the 33 industries
ne^s bITnalvzed
Sample the
are shown.) Note that whereas

needs to be analyzed.

Earnings Mate
The

basic

formance

test

the

chemical

Total Capital.
earnings per-

rate

return

rate

Sample's

1935-39

87%.

the

earnings

136%

was

composite, in 1953-57 it

was

annual

the

down

data

are

the period

al-

which earnings represent on the
examined, it will be seen that a
capital required to produce them, downward
trend
prevailed
Therefore, rather than looking at through
an

index

earned,
amme

much

the .dollar

amounts

the next

step is to «xthe earnings rate on total

Ca*£l
iu
Whether

eluded has

the return

™

•

not Du Pont is

in-

substantial effect

total capital earned

Igr the Chemical Industry Sample,
Table IV,

^ ifeen

above
ward

the

the
the

1955-57

1954

drift

Peri°d

levels

low.

should

The

were

down-

noted, and
reasons f°r it need to be de-

termined

and

appraised

the

analyst

Clearly,

numerous

additional fi-

nancial factors would need to be

rom 9onsidered carefully

Note that the average

12.7%

though

ing

ment

conclusion

before reachto the invest-

attractiveness of the chem-

including Du Pont, which ical
industry. However it was not
places the chemical industry tenth our
objective to arrive at definiamong the other major industries, tive
conclusions
regarding this

unit

labor

input

(weighted

manhours) is due to the fact that

^es stron^y

oi expansion.. .fei.:.

—average^,

v->.

..r

^:::4rrgnd rates of increase .in total
weighted by : Even from; oi ie^^ cycle i:peak-to :
|. i W roductivity lor 33 indusaverage earnings by industry, the another;
^deviat :0ns from ynrend;^v
/see Exhibit 2)- range
weighted
measure
rises •:^ more ;rates op
increase-in total produe-;! ws; than'1% a year for
than unweighted manhours. This
tivityVaverag<^r; 1.0 percentag#' »ntiiracue coai mining, tor more
reflects the
relative
s h i f t
of point. ,• The: gi#ater :
thantrenda. year for electric light
workers to higher-paying indus- rate of
advanc^|rom 1948; to 'IBoS*
bower. No major industry has
tries which has gone on for a -should not
hav^:I)een;interpreted ^-jLr^i a deciine' in productivity,
long
time.
A
weighting
by-as, indicating
f^acbel^io^^.;-h.ch^ttests to the strength of the
minor industries and occupations,- trend any
more|than the less than fnrpp^ nromoting productivity adif feasible, would probably
pro--average advantW from ~ 1953-1957:
e in the United States.
.!
duce an even larger increase in r should be inter; ireted as
^
weighted labor input and-thus
ana
tnus • owing
owing; a-Slow
a ' siowmg
Tnese ,Jrf
differential rates of pro_
pg. down of the
These
smaller increases1 in output per
oer
trend.' It is thffidrift
over several
several .ductivity
ductivr
trend.
thefdrift over
advance ; have strucunit of labor input and in total cyclical period®.that is significanU- Jantly
affected;; economic
economic
when

manhours

are

r"1

wnrri

Zunni

•

tture.In. the first

place,-relative

"&re. i. Jn- the first -place, - relative
Productivity: .changes have not
even more clefrlv in the growth ^e9n ^correlated with .: relative
of
real econonw;
producf per
per-capita
In
the ls
changes
in -factor
prices.7,- There
ot.real
Producf.
-capita
in real
factor correlation
prices.
private
Since
1919
no significant
be-

' . The Jmportaifce-"of prbduetivity
war pe" 111 economi.c pifgress can be sebn
*

Rptip" ,qJoP
Shm t u an{^ 1957'
thin^
nsGn
by
6% a year,
on aviLl\ 3 yG+tr'
av_ prfvate econonf; Since 1919, real
erage—more than
the ?n
longer private product:- per < capita in- fween changes in productivity and
norf«^
c/3/
„?_.
yer,the
knger
private produft- per> capitaall
■ Of::in;.hourly
AWCCll CllClilgCS
ill pujuubliwij1
Clliu
penod.
Some people have taken creased by 1.8%a year-^-so all
earnings.
Il899r-1953).
of 7in:ihbiirly .^earnings^^
ll899^!953).
riod

outnut ner
^
hif
a
bit
U1L more man
erage—mom

over

nrlS

advance.
the

rTV\ovo

ifi

lilrAiiTicA

a.dven^ of a .n9w this must havft; come out of the There , is likewise no

total

But

when

■

-norrftl ofinM

correlation

prTductivity adVance.; between reiative changes in pro® dlf^erence|s due to a decline "ductivity and in rates of return

w^look^at Th%f

productivity measure
it was right in line

° lnPut P©r capita. . Real capital on capital. In fact, over long pelVlvlJherru919-1957 trend—2.;L% " stocks and inp|t rose relative to riods of time, the prices ;of the
capital'per
P
per manhour
manhmj^hal
has ^hmx
real offset the decliW-Jn
bu|; not"labor
enou§h
to factors
much
the> same
shown
input
changes show
in most
industries
as

see

that

Volume

189/ Number 5858

The Commercial and

some

tal markets

pared

wOiKang oroperiy.

>*;.•• V.'
Productivity Induces Price
,,

Declines .:;

:/./J'

Accelerating National
Productivity Growih

, ,

Over
0f

and

the

there

above

steel
is

the

industry

pressing

growth

problems

between

in
prices
of
products by inuustry.; Tiie/ correlation is not perfect since unit
relative

materials

costs

clear

with

a avanees

relative

price

de-

creases*ih' the .short-run; persist- other half of the cost front—pro- national

clines./--//7--'>^'-; /"/';':/•

ductivity. I strongly suspect that
there are real possibilities in the
iror* and steel in<*ustry for increasing--productivity at a more
chasers gradually shift tp other rapid rate in future years than
products or suppliers whose prices in
the past decade. During the
interwar

ent relative price rises, such as
sales and output
which has
in haVe ~taken place in steel since
turn
promoted productivitv ?ad- the war» are bound to have a neg"
vance—the opposite of 'a^ viciouS: adVe l6nger"run effect as pur'
This has- of

circle'

course

Output

has

stimulated

expanded

enough in the technologically progressive industries to result in a

have risen £ess.

relatively greater employment of
labor
and
capital than in /the /
economy as a whole, despite the

greater
and

reductions

unit

labor

capital requirements.'; T h i s

.;•

•,

period,
1919-1939, for
example, advances were significantly greater than in the period
1947-1957. In looking at a recent

.
o

Uncovers
Sources of
Price Increase
What have been the

causes

si,.,,

over

—

measures

aie

ivhich

needed

»U1

Science

tion's annual investment in educa¬
tion
as

should

soon

cated

this

labor

I across

should

tion

increasing
possibility
our

doubled

least

at
can

force

operate

the

not be neglected, as
leisure gives us the
of upgrading within

adult labor force.

Closely
associated
with
this
point is the need to expand re¬
search, development, and innovational activity even more rapidly

cut

.^"eve that it would pay the iron
One prerequisite to accelerating
eud steel companies to step up our productivity advance is widesubstantially research and devel- spread recognition of the problem,

you

but let

Eisenhower's

Advisory Committee, that the na¬

and above this

of most other Industries, exerting
upward pressure on price.
The
me
briefly OTtemarize thd im#' second eatisai factor is productivcations as I see them
Lettu&fari * ity; which ' provides a means of
with the fact that prices of steer offsettihg to some extent; at least,

industry?/ fsIcS

recommendation

recent

President

^-e
than in the past.
Lufarturine'indurtrv
Raising productivity in individmanuiacturmg industry ual industries, particularly those
that have been lagging, is part of

to research and development.

have been thinking of this

the

ofWtw« th?' .is>heJig?^%^ imoreP^nathoIesteel

place, i heartily endorse

the first

creasing our real incomes per productive mechanism and to dfe,fP°n7 tamily more rapidly in the future vise improvements. Adult educa¬

grd

should

effectively be
productivity
addone, and that the
quality 6£
vance
could
be
an
important education be improved. With On
anti-inflationary
factor
in
the
increasingly complex technology,
domestic
economy.
Finally,
it we need a better trained and edu¬
celeration

search and development as ratios

£*

•

trade,

thinking not in terms of mantaining past rates of productivity
growth, but in terms of increasing
those rates. Also, with the tendency of money incomes to outrun
our capacity to produce, an ac-

0f-tabulation of expenditures for le- would provide the basis for in-

the relative increases in steel mill

certainly suggests that-the notion/productprices?
They may be
° 5 vf' n?Ser* S a
of "technological unemployment" classified
broadly under two
Paiu5n
is a bogey, and I am glad that we headings. One is the prices of the
. %
>
do not hear much about it any inputs, of which the two most imnbrtant tvnes are labor and nur- SrouPs' the primary metals prodmore.
,.v
portant
types are labor, and pur'UD ranked numb® 14
Si uc
chased
material,
supplies, and
uc.;f k}!,up ian^ca numnei 11
Significance for Iron and Steel >' contractual services.. "The pri(?$5 with httle^nore than one-quarter
^ f\-p nnp
ppi-if nf rpvpiniA ftniiicf
L

volume

pro-

industries

largest productivity
have vshown

well

price.r But ft

thatuthe

changes

ductivity effect

effefct.

same

increasing

articles and talks on the sub¬
tempt to raise the rate of pro¬
ductivity growth in the economy ject will increase our "producas a whole. We have seen that tivity-consciousness.'*
there has been no acceleration in
How to Raise Growth Rate
the rate of growth of total factory
productivity for the past 40 years;
As to needed measures, I can
yet in the postwar period many do nd more here than indicate
;
other countries—in which I would briefly several areas In which I
include the Soviet Union—have think actions would be favorable
made remarkable progress.
In to productivity advance. In many
shipments. '
V
i
But while tackling the problem order to preserve the basis for cases, we do not know the precise
//No matter how insensitive de- of
input : prices, I do urge our relative power position in the measures heeded and more re¬
mand1 may seem to be to price in- an unrelenting advance on the world, and our position in inter- search and study are indicated. In

As far as labor costs are conjcerned, comment is scarcely nec.essary, nor would it be appropri;ate here. I also have no advice
risen less, or have actually fallen, ,to offer with regard to prices of
this has reduced our comparative imaterials and other intermediate
advantage, or eliminated it for^,inputs, except to keep suppliers
some products in some markets— on theitf tpes.
<
with a consequent reduction Of j
cueffes+s Two Pronosals
net exports in relation to tbt^l , .
.SS •
' >

tion

the

Certainly,

at-

Price Stability fdr
has- issued

Growth

statements

believe

need

Cabinet

The

generally.

Committee
Economic

Since relative changes in pro-> b(? adaed
the international reductivity ana. in factor prices are percussions.
Insofar as relative
not correlated, tnere must be and
Prices of steel mill produces in
is a sigmticant negative correia- competing foreign countries have

productivity. and

(2871)

decrease in their sales com- changes in profit margins have
with what
they would not provided a significant offset
otherwise haye been, and has thus to rising unit costs.
further dampened the expansion w The
unfavorable price trend
0f the steel marKet. To this must .can be attacked in various ways,

they should if the labor and capiare

Financial Chronicle

industry lines,

the future than in the past,
and particularly in the industrial
areas in which both research afid
in

opment, both within the company I sense that there is an increasing
atri through the American lion emphasis on this goal in influential
many
-piStete h^V risen signifi-. ineredsing; prices'of the inputs. i^.Steeh Institute insofar as this times
circles.in It
was mentioned many
hearings before the Joint

productivity advance have lagged
in the past, as in trade, finance^

and services.. We should also tryto increase research productivity
But prddUctmty in the steel in•
It would be of assistance, of Economc Committee last year and
itself by more research into tne
dustry 'has vrisen somewhat less / .It woulc ,
,
of
the
year, as-'wett as oveV the p^ribtf i
tHati*:iri ,iharidfact;ufihgj or in the course, if suppliers—especially of this. The final report several nature of creative activity, includ¬
a whole.
This increase in relative/ccohdibyj as a whole, during--.the' capital- goods /■ Were also able to American Assembly, held
ing the motivations involved.
*
prices is the1 result, the symptom;" postwar period through 1957 or accelerate, their productivity ad- weeks
ago a
Men House, v Productivity advance Would be
of basic forces-we shall look at m
I9S«,;'
V.
with favorable,, effect on stressed the objective of aceeler- ^accelerated by a more rapid

cantly

than whprcsale prices

generally, since the War——year bv

moment.

It -is-a

distressing

ThVis. costs' per unit of output

symptom .:< that'* -wbrks^;to-'/fth'e'^Kave*
:significantly,, more
longer-run.;-; disadvantage/ of'"th^ thaii ;i,n fhje!economy since input
industry.; The persisting' 'relativ^irices;' fiive; risen more/ and these

.their prices.• to steel.
.

steel.
some

products

atf^btti^^i)!|ustries;

It has also

tend^

"
-

on average;

largely; reflected

1:;' 1 EXHIBIT

iow

;

?iqqqZinn?

lyoo, tiooy—.luu;

price

^
.

I also think we cOiad

considerably more frOtti the
practice in other countries of the

accelerate

world. One sure way to

productivity is by more rapid re¬
placement of old equipment with
new.
Change irt tax laWS with
respect to depreciation allowances

1>500

Output; Input/ and Productivity/1889-1957

;, ^

associations.

learn

since

of innovations among re¬
firms, and across industry
and national lines.
Management
must be unremittingly alert to
pick up new cost-reducing goods
and methods from supplying add
competing firms, or through trade

spread
lated

"EXHIBIT 2

unit' -costs vhaVe ' been

increase in the prices. of. ther.creasing

products of steel-using finns and

This Percentage;>
combination, and the in- 2,000

.^ause Tis a/bad

;

•„

price advance^has exipahdfedi;th^/-lra^b^k^h^6ffset;by productivity
markets of^ competing^^ metal^^ ahd^'gaib^^te;a lesser fextent ithan in
other

ating productivity and economic

c •

;

Estimates for the Private Domestic Economy

objective.

would facilitate this

broadly, the whole tax
system should be rationalized with
greater emphasis on the objective
of providing incentives to business
for
increasing
productive
effi¬
ciency; This is an area in whifch
More

business recommendations are

particularly pertinent and busi¬
organizations must continue
efforts towards this goal.
ness

I submit that thought
given to creation of a
National Productivity Council, ah
impartial private professional btganization, supported broadly by
various groups ° in the economy,
which would sift ideas, sponsor
Finally,

should

research into causal factors influ¬

encing productivity, and propose
specific private and public meas¬
ures designed to promote produc¬
advance.
It is true that
organizations are already
working in these directions. But
a
Productivity Council could fill
a
need by coordinating efforts,
stimulating research in,relevant
fields
not
now
covered,
aftd
tivity

many

focusing

the

scattered

activity

going on towards the

now

single

objective of promoting produc¬
tivity advance in the economy. ^

Now With P. de Rensis
(Special to The Financial Chronicle)

BOSTON,

Mass.

—

Daniel

Ring is now with P. de
Co., Inc.,

1889

1899

J 909

1919

1929

193*

1949

1957

Electric uti 1 ities

private domestic economy

Total

Anthracite mining

bers

change.

Rensis &

126 State Street, mem¬
the

Mr.

with Keller

Boston

Stock

Ex¬

Ring was formerly
& Co. and Schirmer,

Atherton & Co.

(2872;

The Commercial and Financial Chronicle

Continued from page 5

The State of Tiade and

Central, East South Central, and West South Central States.
change from a year ago appeared in the Mountain Region. Twenty-one Canadian failures were reported as compared

with 32 in the preqeding week and 27

Industry

capacity rating of 147,633,670 net tons
of raw steel annually, the
steelmaking facilities were utilized at
en average of 92.5% of
capacity during May 1959, compared with
93.0% in April 1.959, and 87.4% for the first five months of 1959.

Index represents the

output in June is running ahead of the 650,000Only June of
(720,100) will

imit scheduled forecast

as the month
got underway.
record year 1955
(649,393), 1953 (588,604) and 1950
rank over the current month.

The statistical publication said

truck-making hit

for the week ended June 13 when
27,925 units

were

With the arrival

1959 peak

erected.

;

The

wheat in

some

up their purchases in the coming weeks.
export buying is anticipated shortly.

The automotive

publication said the 3,000,000th U. S. car of
1959 was produced
Monday (June 15). By,the. end of that week
the count will have risen .to an
.estimated 3,109,771 units, 45.2%
more than the
2,141,195 units assembled through the corresponding

purchases of tobacco and for other
general corporate purposes.
Prior to June 1, 1964 the bonds
not be redeemed through a
refunding bearing an interest cost
of less than 4.95%.
Starting in
may

Electric Output 11.6% Above 1958 Week

retire an
debentures
annually during the sinking fund
period. The debentures will be
tion

In addition, a gain

Morris

Loadings in the week of June
preceding week.

were

;

26,585 cars,

Lumber shipments of 475 mills
reported to the National Lum¬
ber Trade Barometer were
2.1% below production for the week
ended June 13. In the same
week new orders of

13.8%

these mills

below

production.
Unfilled orders of
reporting mills
For
Reporting softwood mills, unfilled
equivalent to 19 days' production at
the current
rate,
stocks were equivalent to 42
days' production.

and gross

For
were

The

were

the

year-to-date, shipments of reporting identical
production; new orders were 3.3% above

2.5% above

duction.

June 17

were

3.2% above; and

new

mills
pro¬

While

from

orders were 4.2% below.

with
and

Business Failures
Continue Decline
Commercial

and

industrial failures

continued

down

were lower in all
noticeable declines in

industry and trade groups, with the
manufacturing, down to 38 from 49,
139

and in
retailing, down to
from 146.
Casualties among con¬
struction contractors
dipped to 40 from 43, among wholesalers to
24 from
26, and among service concerns to 26
from 31.
Fewer
businesses succumbed than last
year in all lines
except commer¬
cial service. The
manufacturing toll fell most sharply from 1958.
Geographically, the week's downturn was concentrated in
three regions—the Middle
Atlantic States where failures
declined
to 76 from
100, New England, off to 17 from
25, and the Pacific
States, down to 48 from 67. Moderate
increases prevailed in five
regions, while East North Central casualties
remained at 52.
In

most regions,
however, business mortality dipped below
year's level. Tolls rose above 1958 in
only three regions: The

Goldman, Sachs & Co.

last
West

liam

dollar

volume

retail

trade

the

week

interest in

women's .Summer

week

of Wesco Finan¬
cial Corp. common stock at a price
of $23 per share.
The offering
marks the first public sale of the
company's common stock.
None of the proceeds from the
sale of the common stock will
accrue
to the company as
the

ended

shares
and

year ago.

fans below the prior week and marked
year-to-year declines
prevailed.
Interest in television sets, refrigerators, and
laundry
equipment remained close to a year ago.
The call for outdoor

tables and chairs, bedding, and case
goods was sustained at a high
level and over-all furniture sales remained
appreciably over last
year.
While interest in floor coverings climbed over last
year,
volume in linens and draperies was

unchanged.
Consumer buying of food was steady this week.
There were
slight gains in the call for canned goods, dairy products, and fresh
produce.

geles,

Calif.,

since

For June 13 Week

Department stores sales

on
a
country-wide basis as taken
from the Federal Reserve Board's Index for
the week ended June
13, increased 3% above the like period last year. In the preced¬

ing week, for June 6,

an increase of 10% was recorded.
For the
ended June 13, a gain of 6% was registered and for
Jan. 1 to June 13 an 8% increase was noted.

four weeks

According to the Federal Reserve System department store
sales in New York City for the week ended June 13
did not show
any change from that of the like period last year.
In the preced¬
ing week, June 6,
increased 5%

10% increase

and May 23 a 10%

was reported. On
May 30 sales
increase was reported.

was

metropolitan areas
in 1925.
Loan, with its
A
Pasadena,
WiJUVIVXlU,
also

founded

Mutual Savings &
main
JilCtJLIX

office

VAtlVV

ilJL

operates branches in Glendale and
Covina, Calif. Its principal activi¬
ties are to provide a savings me¬
dium for investors and to lend

\ funds to

finance the construction

and ownership of homes

residential

property.

and other
Most of

originally
finance the construction of new

Mutual's loans are made
to

single family homes.
As of March 31, 1959 assets of
Mutual

Nationwide Department Store Sales Up 3%

stockholders.

tion, which has been in the savings
and loan business in the Los An¬

regions held volume in air coolers and

outstanding
account

principal business of Wesco
Financial Corp. is the ownership
of all the
capital stock of the
Mutual Savings & Loan Associa¬

sports¬

some

presently

being sold for the

The

apparel fell moderately

lightweight suits matched those

are

of certain

year

Cold weather in

and Wil¬

Co. are joint man¬

agers of a nationwide group
underwriters that offered on June

earlier, volume remained slightly over last year,
principal gains in dresses, Summer coats, women's 4
suits,
lingerie.
With Father's Day falling a week later this

wear; sales of

Blair &

25, 387,300 shares

last, volume in men's apparel dropped noticeably below the
similar calendar fi)58
week, especially in furnishings and

267

steady at 41, the same as last
week, and exceeded
considerably the 29 of this size in the cor¬
responding week of 1958.
Twenty of the failing businesses had
liabilities in excess of
$100,000 as against 27 a week earlier.
Tolls

Corp.
Common Slock Offered

from 1%

than

in the week ended
June 18 from 295 in the
preceding week, re¬
ported Dun &
Bradstreet, Inc. While casualties fell below the
290 in the comparable
week last
year, they remained above the
241 in 1957.
Some 14% fewer
concerns failed than in
pre-war
1939 when the toll was
310.
All of the week's
decrease occurred
among casualties involv¬
ing liabilities of $5,000 or
more, which dipped to 226 from 254
in the previous week
and 261 a year
ago.
Small failures, those
with liabilities under
$5,000, held

most

Weseo Financial

below to 3% higher than a year
ago, ac¬
cording to spot estimates collected by Dun &
Bradstreet, Inc.
Regional estimates varied from the comparable 1958 levels
by
the following
percentages: Mountain +5 to +9; West North Cen¬
tral -f 2 to +6; East North Central
+1 to +5; Middle Atlantic
and East South Central 0 to
+4; Pacific Coast —2 to -f 2; New
England and South Atlantic —4 to 0; West South Central —5 to

Compared with the previous week ended
June 6, production
of reporting mills was
0.7% above; shipments were
5.8% below,
new orders were
2.1% below. Compared with the
corresponding
week in 1958,
production of
reporting mills was 3.7% above; ship¬

ments

total
was

Mil-

textile chemicals.

ago.

amounted to 42% of stocks.

orders

industries.

subsidiary, Nicolet Paper
Corp.,
produces glassine paper.
Philip Morris, in, April 1958, ac¬
quired Polymer Industries, Inc.,
manufacturers of adhesives and

men's apparel and air
cooling equipment. Scattered reports indi¬
cated that sales of new
passenger cars matched those of the prior
week and remained
sharply over a year

were

allied

and

print's

Retail Trade Close to Year
Ago Volume
Although unseasonably cold weather in some areas held con¬
sumer buying below the
prior week, total retail trade was close
to a year ago.
Slight year-to-year gains in women's Summer
apparel, floor coverings, and outdoor furniture offset declines in

For June 13 Week

smoking tobacco.

food,

Lumber Shipments Were 2.1% Below Production

Philip.

rt_The company in July 1957 ac¬
quired Milprint, Inc. which de¬
signs and "manufactures various
types of flexible packaging for the

year ago.

at the end of the week and finished moderately
higher than the prior period. Trading picked up,
reflecting re¬
ports of unfavorable weather conditions in some
growing areas
and limited supplies. Cotton
consumption in May came to about
702,000 bales, compared with 717,000 in April and
600,000 in May
1958. For the first ten months of the current
season, consumption
totaled 7,139,000 bales,
compared with 6,763,000 in the similar
period last season.

3.9%

products

Marlboro, Parliament,

Philip Morris, Benson and Hedges,
and English Ovals cigarettes; and
brands

Exchange climbed

above the

are

Bond Street and Revelation

appreciably

Loading of revenue freight for the week ended
June 13
totaled 709,137
cars, the Association of American
Railroads an¬
nounced.
This was an increase of
86,453 cars or 13.9% above the
corresponding week in 1938, but a decrease of
36,983 cars or 5.0%
below the
corresponding week in 1957.

prices ranging from 103%% to
100% and accrued interest.

buying of steers
slightly higher and prices moved up somewhat. There was a
substantial rise in lamb prices
reflecting higher trading and lim¬
ited salable receipts. In contrast to the increase
in hog prices, lard
prices fell moderately from the preceding week.
Cotton prices on the New York Cotton

Loadings 13.9% Above Corresponding 1958 Week

interest.
fund they
30 days notice

accrued

redeemable

are

•

Car

sinking fund

the

for

and

Other than for sinking

year and exceed that of

may

$2,000,000

100%

was

For the week ended June
20, output decreased by 172 million
kwh. below that of the
previous week but showed a gain of
1,390,000,000 kwh. or 11.6% above that of the
comparable 1958 week.

company

redeemable

Hog receipts in Chicago fell somewhat from the prior week,
but prices advanced
moderately as trading picked up. Cattle re¬
ceipts were the smallest in eight weeks, but the

kwh., according to the Edison Electric

the

additional

Principal

wholesalers reported

sinking fund re¬

debentures

were

early in the

The amount of electric
energy distributed by the electric light
and power industry for the week
ended Saturday, June 20, was
estimated at 13,331,000,000

benefit of

quiring the mandatory retirement
of $2,000,000 principal amount of
annually.
At its op¬

markets,

moderate rise in trading, but
steady. Trading in cocoa sagged during the week and
were down slightly.
Sugar prices finished the week some¬
what lower, while purchases showed some seasonal
improvement.
Sugar production this year in Cuba is expected to reach goals set

prices
prices

be entitled to

the issue will

1965

the

fractionally. Trading in soybeans eased somewhat and prices were
down slightly.
Although purchases of flour at wholesale lagged during the
week, prices advanced fractionally.--Negotiations for sizable ex¬
ports of rice to Indonesia, Argentina and Ceylon were completed
this week and domestic demand was
steady; rice prices were un¬
Coffee

through week ended June 20 will bo an esti¬
mated 319,403 units, 44.9% above
corresponding 1953 (427,335).

Philip Morris

of short-term
loans.
The
proceeds from the
short-term
loans, together with
other funds, were used to finance
reduction

the

changed from the prior week.

year ago.

The truck total

proceeds from the offering

Net

Although transactions moved up appreciably, prices on corn
and oats remained clcse to the
prior week and rye prices dipped

More than 120,000 trucks will be built this
month, according to
Ward's for the best June yield since 1951
(133,141) and greatest
truck total for any month since
May 1955 (129,869).

4.95%.

est, to yield

will be applied by

wheat trading moved up last week and prices were
moderately
higher. Flour mills' supplies were low and they are expected to

step

figure is threatened by the schedule of 27,795 units for week
y ended June 20.

Institute.

of seme new-crop

Glore, For-

The debentures will be
priced at 99% and accrued inter¬
& Co.

gan

Higher prices on wheat, flour, butter, livestock, cotton and
steel scrap helped boost the
general commodity price level mod¬
erately over the prior week. The Daily Wholesale Commodity
Price Index, compiled
by Dun & Bradstreet, Inc., rose to 278.92
(1930-32=100) from 277.70 a week earlier, but was below the
279.90 of the
corresponding date a year ago.

(84,396).

managed by

group

Lehman Brothers and

Wholesale Commodity Price Index
Advances in Latest Week

Reports said.

Ward's estimated 131,584 automobiles will be
produced in the
week, the top effort in four weeks. It betters earlier week's
output, ended June 13, of 127,029 units by 3.6% and is 55.9% above
the corresponding week last year

was

derwriting

total of the price per pound

raw foodstuffs and meats in
general use.
It is not a costof-living index. Its chief function is to show the general trend
of food prices at the wholesale level.

Morris Inc. 4"%% sinking
June 1, 1979
made on June 25 by an un¬

Philip

fund debentures due

of 31

Largest in Four Years

Production in U. S. plants continued to boom
along in the
week ended June 20 at a
pace that will send passenger car output
to its greatest June total in four
years and truck volume to its best
June ievel in eight
years, Ward's Automotive

week

sum

of $40,000,000 of

Public offering

barley, hams, bellies, sugar, milk, steers, and hogs.
The

car

Debentures Offered

year ago.

Index, compiled by Dun & Bradstreet, Inc., remained at the level of the prior week, but was
down appreciably from the similar week a
year ago.
On June 16
the index stood at
$6.09, for a decline of 8.2% from the $6.63 of
the comparable 1953 period.
Higher in wholesale cost this week were flour, wheat, lard,
coffee, cottonseed oil, cocoa, and eggs. Lower in price were rye,

the Jan. 1,1959

Ward's said

Philip Morris Inc.

The Wholesale Food Price

The index figure for the first five months of this year was
154.0 compared with 88.4
during the same part of last year.

June Auto Output to Be

Wholesale Food Price Index Unchanged

index cf
average production during the period 1947-1949.
^his
compared with 163.9 during April 1959 and 88.6 during May 19o8.

Thursday., June 25, 1959

North

Based

Savings

Loan

aggre¬

gated $134,797,721; unpaid princi¬
pal amount of real estate loans
was $116,916,365; savings accounts,
$111,227,037, and general reserves,
undivided profits, guaranteed
stock and surplus were $10,212,584.
For the year ended Dec. 31, 1958
Mutual Savings & Loan had total
income
of
$7,791,258,
and net
earnings before appropriations to
general reserves, $2,085,437.
At March 31, 1959 Wesco Finan¬
cial Corp. had 1,209,000 shares of
common

stock outstanding.

Volume

Number

189

5858

■

The following statistical tabulations cover production

Indications of Current

latest week

week

Business Activity
r

Ago

93.6

61.7

AMERICAN

2,650,000

*2,620,000

§2,627,000

June28

lons

June 12

7,684,000

Jpne 12
June 12

28,667,000
1,952,000

*29,152,000

26,821,000

26,960,000

1,956,000

1,867,000

June 12
(bbls.)
June 12
bulk terminals, in transit, in pipe line
Finished and unfinished gasoline (bbls.) at
June 12
Kerosene (bbls.) at
June 12
Distillate fuel oil (bbls.) at_.
.
June 12
Residual fuel oil (bbls.) at—
,
June 12

12,287,000

12,683,000
7,141,000

1,824,000
12,335,000
6,240,000

June 12

—

stills—daily average (bbls.)
output .(bbls.)__.
Kerosene output (bbls.)
Distillate fuel oil output'(bbls.)—

Crude

nuns

Gasoline

6,605,000

Residual luel oil output

7,032,325
*8,204,000

7,177,525

•

■'

AMERICAN

ASSOCIATION

Indicated

11,613,000

—

Total

TT.

construction-.

26,151,000

25,063,000

22,513,000

106,505,000
54,612,000

102,496,000

89,639,000

96,694,000

Orders for

55,615,000

54,629,000

63,393,000

New freight cars
Backlog of cars

AMERICAN
Month

709,139

682,624

694,380

622,686

583,562

569,430

583,186

517,322

—

Public construction—

——

Federal

$468,200,000

$429,875,000

252,500,000

304,200,000

135,188,000

318,100,000

270,300,000
211,800,000

164,000,000

184,600,000

145,900,000

294,687,000
220,379,000

—

133,500,000

58,500,000

18,100,000

74,308,000

June 13

Pennsylvania anthracite (tons)

June 13

9,035,000

*8,500,000

408,000

380,000

8,255,000
324,000

AVERAGE

SYSTEM—1947-19

Month
U.

June 13

142

467,000

June 20

13,331,000

137

150

138

(in 000 kwh.)_.

Electric output

BRADSTREET, INC
IRON

INDUSTRIAL)

(COMMERCIAL AND

J-

—

11,941,000

267-'/

June 18

•

-295

259

O-*.

(per lb.)

(E.

PRICES

—_————.—

6.196c

June 16
Pig iron (per gross ton)-.———————— June 16
Scrap steel (per gross ton) —
—
—June 16

Finished steel

290

$66.41

6.196c „7

...

'$37i50

$38.17

5.967c

.$66.41.

$66.49

534.17

$35.17

Domestic

tin

Straits

31.000c

31.100c

31.175c.

25.225c

27.675c

28.675c

28.600c

24.625c

12.000c.

12.000c

11.000c

June 17
June 17

11.800c

10.800c

11.500c

10.500c

June 17
June 17

11.000c

10.000c

24.700c

24.000c

June 17

104.750c

—

June 23

83.65

— —

June 23

——

—

:—
—

99.5^) at-

at——

(New York)

U. S. Government Bonds

Average corporate

Railroad Group
Public

Utilities

Group

Industrials Group

Aa^
.

~~~

I""-

—ZZ-Z-ZZZZZZZZ-ZZZZ—ZZ-Z-ZZ

Railroad

Public

Group
Utilities Group

Industrials

;

Orders received

Production

—

OIL, PAINT AND DRUG REPORTER PRICE
1949 AVERAGE —100
—

TRANSACTIONS

.Short

sales

Other

sales

Other transactions

——

Other sales

sales

•Total

initiated

Short

sales

Other

sales

purchases

Short

sales

Other

sales

Total sales

EXCHANGE

Number

(customers'

Production

Shipments from mills

97.78

Stocks

87.86

88.95

100.00

5.00

5.05
4.77
■»

Customers' other sales

•

sales

—

Round-lot

—

——

115,978

134,585

1.35,233

78,631

86,132

74.323

253,463

(tons

RESERVE

152

150

128

152

151

middle

127

G4'.2

64.8

63.1

(BUREAU OF MINES)—

—™!—
(barrels)

month

used

cent)

(per

Passenger Tires

29,093,000

(barrels)
:

,™

MANUFACTURERS

and

COMMISSION—

(barrels)

INC.—Month

Truck

May:

April:

end

Capacity

ASSOCIATION

—1_„
,

Tires

(Number

35,170,000

9,569,443

;
.

Bus

25,318,000

*37,711,000

•'

'
of )—

(Number

24,001,000

23,011,000

36,381,000
v

April: '

24,329,000

30,135,000

7,173,000

6,985,772

9,252,580
9,959,002

6,521,837

17,596,722

20,181,357

19,050,859

,1,304,042

1,002,135

of)—.

4.71

4.26

Shipments

3.89

Production

1,038,769

Inventories

3,275,554

398.6

June 13
June 13

308,729

348,856

330,025

295,007

282,974
322,778

271,307
290,704

June 13

528,417

548,933

485,085

384,471

June 19

110.15

110.34

110.43

109.81

Tractor

1,429,683

___

Implement Tires

(Number

1,390,661

954,914

3,680,472

3,607,103

of)—

441,270

447,911

385,907

Production

302,866

407,716

335,381

795,096

931,272

692,609

3,928,2G4

4,435,391
4,459,094

3,623,981

Inventory
Passenger Motorcycle
Tubes

(Number

Shipments

Truck

and

Inner Z

Bus

'•<.

of)—■

;

—

Inventory
Rubber

1,193,750
219,490

2,332,450

2,677,230

339,770

348,200

459,070

1,964,580
2,304,350

2,074,430

2,180,500

913,150

2,422,630

2,639,570

1,132,640

(pounds)
Production
(pounds)
Inventory (pounds)
RYE

.—.May 30
May 30
May 30

19,500

29,100

487,650

477,600

400,250

277,440
28,650
268,100

May 30

507,150

506,700

445,350

296,750

466,020

427,870
45,100

May 30
-May 30

653,696

689,630

709,890

128,737

118,160

-May 30

714,591

104,640
862,515

724,959

379,100
98,480
440,022

843,328

843,119

967,155

538,502

3,351,646

3,488,100

3,814,990

1,850,290
346,620
1,621,272
1,9G7,892

May 30

608,810

488,007

495,460

May 30

3,166,821

3,276,989

3,443,265

May 30

3,654,828

3,772,449

4.052,075

44,867,000

7,609,048

*37,665,000

38,019,000

;

37,728,000

38,569,000

37,534,000

27,047,000

34,515,000

26,799,000

DEPT.
Juno

AGRICULTURE—

84 %

OF U. S.

84'

c/o

CLASS I

RY8. (Interstate Commerce Commission)—
Month

Net

Other

February:

railway

operating

income™

income

Miscellaneous

deductions

available

Income

for

income

from

fixed

charges
Income after fixed charges

Other

deductions

income

(way & structure & equipment)
income taxes

Depreciation
Federal

Dividend

$39,793,696

$36,160,073

20,344,796

25,446,728

$9,0G7,596
20,339,878

60,138,492

61,606,801

29,407,474

4,442,453
55,696,039

4,405,196
57,201,605

24,966,344

24,271,958

25,826,000

*6,471,629

4,441,130

4,285,805

4,290,571

3,978,748

19,986,153

21,535,429

*10,450,377

50,670,204

50,773,747

15,294,773

17,579,658

49,761,313
1,262,066

28,640,569

,24,338,440

27,998,337

8,231,205

4,604,183

8,352,214

1.77

1.82

0.79

$53,131,900

$43,951,000

$288,000,000

$280,000,000

206,302,940

285,353,359

275,652,540

107,500

106,604

96,756

$206,410,441

$285,459,964

$275,749,296

418,814

419,708

431,923

$205,991,626

$285,040,255

$275,377,373

2,008,373

2,959,745

4,682,626

$286,410,441

$285,459,964

5,688,203

5,969,072

$275,749,296.
6,129,890

$280,522,238

$279,490,892

$269,619,406

2.853(i

£<624%

appropriations:

stock

common

preferred stock

Ratio

3,242,830

7,629,223

CONDITION—CROP REPORTING BOARD

Net

3,379,754
7,218,761

(Camelback)—

Shipments

2,342,330

Shipments

Tread

May 30

income

charges

fixed

♦Deficit.

May
May
—May
May

30
30
30
30

May
May
May
May

30
30
30
30

sales by dealers—
Number of shares—Total salessales

91,116

137,490

4.73

1,699,004

1,786,479

2,197,339

820,372

$102,830,427

$95,625,800

$123,309,784

$36,421,697

1,540,555

1,628,0G1

1,886,225

824,965

8,114

6,566

7.203

8,126

■

—

purchases by dealers— Number of shares

816,839

1,532,441
$85,730,911

1,621,495
$85,210,523

1,879,022
$102,481,736

$34,047,504

463,170

448,820

465,730

284,G80

TREASURY MARKET
RECT

AND

IT.

TRANSACTIONS

IN DI¬

SECURITIES

GUARANTEED

A.—Month

May:

463^170

44~8~820

465,730

284,680

579,690

599,580

701,140

276,310

Net

purchases

$86,297,500

17. S. GOVT. STATUTORY DEBT LIMITATION
—As

Total

Round-lot

Other

113,954
135,967

*112,663

.u——

;

Dollar value

1,639,000

May 30
May 30

...

Number

Short

May

PORTLAND CEMENT

3.02

4.54

30,662,000

*1,503,000

May:

—

COMMERCE

92.20

4.76

pounds)

Railway Employment
(1947-49—TOO)

88.27

5.04

34,400,000

pounds)

85.98

purchases)—t

Customers' short sales

Index

85.72

386.2

ACCOUNT OF ODD-

purchases by dealers (customers' sales)—
of orders—Customers' total sales

Odd-lot
-

INTERSTATE

82.27

4.70

34,920,000
1,388,000

A.—

—

85.33

400

85.20

....

month

FEDERAL

81.66

389.4

SPECIALISTS ON N. Y. STOCK
SECURITIES EXCHANGE COMMISSION

value

Dollar

THE

85.07

386.5

AND

dealers

Odd-lot sales

■

—

85.33

4.10

For

SYSTEM—1917-49=100—Month

81.78

3.75

—~

—

DEALERS

ERNORS

Seasonally adjusted
Unadjusted

Month

4.12

ioo

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

96.38

99.68

2,846

stocks at end of period

86.51

102.96

4.49

—

53,355

6,379

(tons of 2,000 pounds)

86.11

4.78

May 30
;

tons)

2,000

85.98

4.57

—

STOCK TRANSACTIONS FOR ODD-LOT
LOT

96.54

4.57

members—

:—

—

88.67

4.76

23
23
23

—May 30

round-lot transactions for account of

"•:Total

—

90.20

355.620

■

60,789

15,503

pounds)

Production

—

116,990

92,520

lignite (net tons)™..™
(net tons)

2,000

copper

Total

——

S. A.

2,000

Inventory

—

108,423

66,365
5,668

„

fabricators—

3.98

sales

-Total
Total

In U.

Refined
of

and

(tons
to

4.67

Total, purchases

(net

86.78

the floor—

(tons

4.70

—:

Other transactions

Crude

4.71

—

78,512

anthracite

SELECTED INCOME ITEMS

—

;

5,290,642

production in U.

June 23
——June 23

sales

Short

6,499,470

(BUREAU OF MINES)—Month

INSTITUTE

Copper

Shipments

—

6,624,867

tons)

89.23

initiated off the floor—

Total-purchases-—
.

COPPER

Production

———May 30
May 30

—

30,306

anthracite

3.97

INDEX—

—

35,479

(net tons)

tons)—

coal

3.77

——

3,534

36,869

May:

Bituminous

FOR

—

Pennsylvania

87.86

•-

Total

1,370

3,741

11,748,000

undelivered

Central America

86.11

4.46

ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—
Total.purchases
<—4-May 30

ROUNIX-LOT

COAL OUTPUT

3.57

(tons) at end of period

3,736

3,358

and

America

4.40

—

(net

4.65

activity--

Unfilled orders

South

4.51

1—1

(tons)

Percentage of

Asia

4.47

—

5,253

18,860,000

—

ASSOCIATION, INC.—
V
=

■

89.37

ASSOCIATION:

(tons)

4.57

June
June
—June
Juno

281,120,000

_•

(net

4.70

—

INDEX

NATIONAL PAPERBOARD

Europe

4.58

—

295,009,000
2,628,000

™

—June 23

Group

COMMODITY

MOODY'S

311,623,000
7,295,000

22,000

31,366,000
;

export

cars™.—.

87.72

4.12

—-Zj—»;—- June 23

corporate-!——__

Average

<36,478,000

50,000

(BUREAU OF MINES)—

and

RUBBER

U. S. Government Bonds
.

94.11

83.75

AVERAGES:

MOODY'S BOND YIELD DAILY

94.625c

103.125c

83.58

86.11

June 23
——June 23
—
June 23

—

29,467,000

INSTITUTE

order

—

—June 23

—

104.750c

AVERAGES'.

DAILY

PRICES

BOND

MOODY'S

——

24,652,000

28,113,000
40,638,000

April:

exports

Refined

———June 17
June 17
June 17

—1

refinery at
refinery at
(New York) at
Lead (St. Louis) at
tZinc (delivered) at_
Zinc (East St. Louis) at
Aluminum (primary pig.
Export

and

delivered
on

tons)

Deliveries

Electrolytic copper'—•

Lead

Pennsylvania

QUOTATIONS):

COMPOSITE PRICES:

AGE

METAL

12,931,000

13,503,000

DUN &

—-

219,146,000
194,472,000

25,041,000

Undesignated

EDISON ELECTRIC INSTITUTE:

FAILURES

freight

April:

To North

8,255,000

RESERVE

100_.

201,435,000

CAR

TRUCKING
of

COAL EXPORTS

SALES INDEX—FEDERAL

DEPARTMENT STORE

226,526,000

27,281,000
47,000

Intercity general freight transported by 411
carriers
(in tons)
1

(net

lignite (tons)—

and

250,167,000
222,839,000

May:
new

AMERICAN

S. BUREAU OF MINES):

(U.

Bituminous coal

$522,800,000

228,000,000

—

$546,100,000

Junc 18
—.——June 18

State and municipal

COAL OUTPUT

June 18

domestic

month)

Month

.—June 18
June 18

Ago

(barrels)

RAILWAY
of

(end of

ENGINEERING

—

Private -construction

stocks

190,241,000
22,959,000

NEWS-RECORD:

all

206,616,000

RAILROADS:

CONSTRUCTION

ENGINEERING

consumption

Increase

203,605,000

freight loaded (number of cars)
,
June 13
Revenue freight received from connections (no. of cars)—-June 13

Month

(barrels)

6,459,000

Year

Month

(barrels of 42 gal¬

oil

201,508,000

Revenue

CIVIL

production

crude

output (barrels).
Natural gasoline output (barrels)
Benzol
output (barrels)™
Crude oil imports (barrels)
Refined product imports (barrels)_

Stocks■«,t refineries,

of that date:]

INSTITUTE—Month

each)

Domestic

6,334,885
7,659,000

gallons each)—.

are as

Total domestic

1,666,000

(bbls. of
7,009,975
!I8,020,000

PETROLEUM

March:

output—daily average

condensate

of quotations,

cases

either for thai

are

Latest

INSTITUTE:

PETROLEUM

Crude oil and

that date, or, in

AMERICAN

and other figures for tihfli

Dates shown in first column

Year

Ago

*92.5

§92.8

June 28

month available.

Month

Week

STEEL INSTITUTE:

AND

operations (per cent capacity)
Equivalent to—
Steel ingots and castings (net tons)
—
Indicated Steel

month ended

Latest
AMERICAN' IRON

(2873)

The Commercial and Financial Chronicle

May 31

amount

face
any

omitted):
be outstanding

(000's

that may

time

OutstandingTotal

public debt
Guaranteed obligations not
gross

owned

Treasury

STOCK SALES ON TIIE N. Y. STOCK
TRANSACTIONS
ACCOUNT OF MEMBERS (SHARES):

the

:—

TOTAL ROUND-LOT
FOR
--f

Total round-lot
(Short
-

Total gross public

-EXCHANGE AND ROUND-LOT STOCK

Other

sales—

sales

Total sales

WHOLESALE PRICES, NEW SERIES
LABOR—(1947-49 = 100):

—

585,290

567,330

672,960

501,060

15,179,860

16,290,710

17,650,670

9,062,830

15,765,150

16.858,040

18.323,630

9,5G3,890

Flarm

foods—

Meats
All commodities

other than farm and foods

Grand

under
UNITED

.—

June 16

products

Processed

public

debt obli¬

gations not subject to debt limitation.
total

outstanding

Balance face amount of

U. S. DEPT. OF

Commodity Group—
Mi commodities.

obligations
outstanding

Deduct—other

May 30
May 30
—May 30

sales

debt and guaranteed

June 16
June 16
June 16

119.4

*119.4

119.6

119.0

90.1

*90.6

90.6

95.4

107.8

*107.1

107.7

113.1

103.1

*101.2

102.4

115.8

127.9

*127.9

128.0

125.2

above

STATES

obligations,
authority
i.

GROSS

DEBT

GUARANTEED— (000's
As

May

General

Net

omitted):

.1——*

funds

issuable

DIRECT AND

balance

debt

—-

Computed annual rate

(ilncludes 1,020,000 barrels of foreign crude runs. §Based on new annual capacity of 147,633,670 tons
as of Jan. 1. 1959, as against Jan. 1, 1958 basis of 140,742,570
tons. tNumber of orders not reported since introduction of
Monthly Investment Plan. tPrime Western Zinc sold on delivered basis at centers where freight from East SK Louis exceeds
•Revised figure,

Digitized forone-half
FRASER
cent
pound.

2.658 (/o

RE¬
PORTING BOARD U. S. DEPT. OF AGRI¬

WINTER

WHEAT

CULTURE—As

PRODUCTION—CROP
of

June

(bushels)

941.236,000

956,614,000'

1,179,924

The Commercial and Financial Chronicle

(2874)

Thursday, June 25, 199#

:A::," :

Securities
•

Now

(par 30
cents) being offered for subscription by common stock¬
holders
for

the

each share

of 0.525

basis

held

shares of additional stock

of record

June

17, 1959; rights
to expire on July 7. Price—$3.25 per share.
Proceeds—
For additional working capital.
Office—405 Exchange
National Bank Bldg., Denver, Colo. Underwriters —
Boettcher & Co., Inc., and Bosworth, Sullivan & Co.,
Inc., both of Denver, Colo.
•

both of New York.

Research Associates, Inc.
400,000 shares of common stock (par five
Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
1

—
Wesley Zaugg & Co., Kensington, Md.,
Williams, Widmayer Inc., Washington, D. C. Stop
order proceedings instituted by the SEC.

• Airwork Corp., Millviffie, N. J.

(7/13-17)
175,000 shares of commop stock (par $1).
supplied by amendment.
Proceeds—To
pay demand bank loans of $300,000 and for working
capital. Underwriter—Auchincloss, Parker & Redpach,
18 filed

June

Price—To

New York.

(par $1),
of which 1,000,000 shares are to be offered publicly and
431,200 shares are to be reserved for sale to the holders
of 6% debentures due 1962 issued by
Minerals Ltd., the company's parent

DeCoursey-Brewis

(payment for the
by such debenture holders may be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares
purchased
shares

for the

6% debentures of the parent at the

$1). Price—$4

per

as
underwriter. Change in Name
United States Telemail Service, Inc.

Amican

Petroleum

Natural

Gas

preferred stock and 225,000 shares of class A common
(par $1). Price—Of preferred, at par ($10 per
share); of common, $1.30 per share. Proceeds—For the
stock

manufacture and purchase of electronic
ment. Office—Washington

recording equip¬
St., Westboro, Mass. Under¬

writer—None.

Alscope Explorations Ltd.
26

filed

l,000,u00 snares of capital stock, of
which 700,000 shares are to be offered
publicly in the
United States, and 300,000 shares in Canada. Price—Re¬
lated to the then current market price on the Canadian
Stock

Exchange (31 cents per share on March 16). Pro¬
ceeds—For properties, drilling costs,
working capital and
general corporate purposes.
Office — 303 Alexandra

Price—»1 per share.

Pro-'

(56^4

par

for

cents

per

share).

improvements;

Proceeds—To /purchase

buy

ranch/in

aaanionai

Queensland, Australia; and for other corporate purposes.
Office—1301 Avenue L,
Cisco, Tex. Underwriter—None.

'-?'^'"/^;^"'/^

Automatic Canteen Co. of America//
March 2 Hied 292,426 shares of common

500,000 shares

be sold

are

•

for

(no par),

the

account

share for each three then held.

Unsubscribed stock

the

issue

will

offered

Second

;

—

National

Co., New

drawn.

—

Note

SEC

—

held

hearing

statements in prospectus.

June

regarding

Bankers Preferred Life Insurance Co.

Jan. 30 (letter of
stock

the

(par

expenses

notiifcation) 100,000 shares of

$1.60).

Price—$3

incidental

per

operation of

common

Proceeds—For

insurance

com¬

Office—Suite

pany.

619, E. & C. Bldg.,; Denver, Colo.
Underwriter—Ringsby Underwriters, Inc., Denver 2,

Colo.

Securities

Basic

April 9

Materials, Inc. ' : ;,
(letter of notification) .1,200,000 shares of

stock

mon

(par

cents).

Price—25

cents

com¬

share.*

per

Proceeds—For

mining expenses. Office—c/o Harol^ A.
Roberts, President, Arroyo Hondo, Santa Fe, N. Mex.
Underwriter
Hyder, Rosenthal & Co., Albuquerque,
—

tion to A unit in Apache Oil Program

1960, will entitle
200 rights for the

the

Weld

—

Ave., Anchorage, Alaska. Proceeds—To discharge
loan; for drilling and exploration; and for general

bank

Corp.
April 17 filed 300,000 shares of .common stock (par $1).
Price
$3.25 per share.
Proceeds
To
develop andmanufacture aircraft embodying the
boay lift principle,
etc. Underwriter—Firm
originally mentioned has with¬

public and to holders of stock options. Office—134 East
a

Ballard Aircraft

Anchorage Gas & Oil Development, Inc.
May 27 filed 450,000 shares of common stock, part of
will be offered, at a price of $1.50 per
share, to
stockholders of record June 1, 1959, in the ratio of one
balance

f*'~: '''
.

York.

which

new

'*r.

plant facilities. Underwriter—White.

of the company, and 245,000 shares
by the holders there¬
Price—30 cents per share.
Proceeds—For explora¬
tion and development program.
Office — 2100 Scartn

of.

and

March 31.

Baird-Atomic, Inc., Cambridge,/Mass, T7/14)

17 filed 180,000 shares of common
^tock (par $1).
Price—To be supplied by amendment. Proceeds—To be
used to retire bank loans and for construction of new

Corp. Ltd.

March 23 filed 745,000 shares of capital stock
of which

tive

Mex.

*:V''

•

subscriber to subscribe also to
purchase of one share per right of the company's $1.25
par value common stock. Warrants evidencing the rights
will be nontransferable prior to Aug.
16, 1960, and will
expire at 2:00 p.m., (CST) on Jan. 31, 1962.
Unless

Benson-Lehner Corp.
May 4 filed 89,620 shares

;

common

stock, of which

76,620 shares

are being offered for
subscription by com¬
stockholders of record April 30, 1959, on the basis"
of three new shares for
each 10 shares theinheld, Rights

mon

Apache Oil Program 1960 commences operations on or
expire July 7. Price—$6.75 per share to stockholders. The
before June 30, 1960, all unexercised
rights will be void - remaining 13,000 shares will be sold for accoynt-oT selling
as of 2:00 p.m.
(CST) on that date, and their purchase
stockholders at $7 per share. Proceeds—For
additional
price will be refunded. Price—$12,OOG per unit - Pro¬ /working capital and
/other/general corporate purposes,'
ceeds— For general corporate
purposes;/; Office —523
.including \research '/'andf/develcdment.■/Office
1860
1 Qan
; '-\ ^
Marquette Avenue, Minneapolis, Minn;1 Underwriter—
Franklin Street, Santa
Monica, Calif.APA, Inc., the corporation's subsidiary/
•
'.
Bestwali Gypsum
:.>L : :,V •;V~ v.
•
May 22 ,(letter of notification) 400 shares of common
Approved Finance, Inc.
: /
:
r
stock;: ..(pay, $1
June 3 (letter of notification)
12,000 shares of common
)/v^ict^At ti)e mafkefZon/thezNew "York
Stock Exchange. ./Proceeds—To'
stock (no par) to be offered to stockholders of record
go to a selling stock¬
.

„

Bldg., Edmonton, Canada. Underwriter—None in
States; Forget & Forget in Montreal, Canada.
ment effective June I,

American
Nov.

Asiatic

;
Oil

United

State¬

;

June

filed

100,000,000 shares of capital stock. Sub¬
sequently reduced by amendment tq 20,000,000 shares.
Price—One and one-quarter cents
per' share.
to selling stockholders. Office

Proceeds—
Magsaysay Building,
Luis, Ermita, Manila, Republic of Philippines. Un¬
derwriter— Gaberman &
Hagedorn, Inc.; Manila/ Re¬
public of Philippines.
—

San

American Buyers Credit Cp.
Nov. 13 filed 5,000.000 shares of common
stock, of which
4,545,455 shares of this stock are to be offered for

public

sale at $1.75 per share. [Shares have been issued or are
Issuable under agreements with various
policy holders
In American Buyers Life Insurance Co. and
American
Life Assurance

Co. (both of Phoenix)
permitting them
purchase stock at $1.25 per share.
Sales personnel
have been given the right to purchase stock at
$1.25
per share up to the amount of commission they receive
stock sales made by
them.] Proceeds—For the opera¬
tion of other branch offices, both in Arizona and in
other

states.

Office—2001

East Roosevelt,

Phoenix, Ariz.

Un¬

derwriter—None.

1959,

held.

the basis of

Rights

one

expire

* Aquavee Corp., Huntington, L. I., N. Y.
June 16 (letter of notification) 800 shares of
6%L

cumu¬

lative

preferred stock (par $100) and 20,000 shares of
common stock (par 10 cents) to be offered in units of
one share of preferred and 25 shares of
common, price—
$150 per unit. Proceeds—For general
corporate purposes.
Underwriter—None.

Armstrong Uranium Corp.
Jan.

mon

stock

(letter of notification) 3,000,000 shares of com¬
(par one cent). Price — 10 cents per share
Proceeds—For mining expenses. Office—c/o
Hepburn T
Armstrong. Round Up Heights. Cheyenne. Wyo. Under¬
writer—Bruno^Lencher, Inc.,
Pittsburgh, Pa.
Associated Bowling Centers, Inc.
Nov. 24 filed 300,000 shares of 20-cent
cumulative
vertible preferred stock (par one cent) and

PRIME MARKET FOR SECURITIES!
<J

Chicago and Mid America there are over 1,400,000 stock*
They own more than $20 billion in securities. Your

holders.
best

means to

reach these midwest investors is

advertise

in the

Chicago Tribune. The Tribune puts your securities ad¬
vertising before both the general public and the professional

investor. It is

widely read than any other standard-size
See your Chicago Tribune represent¬

newspaper in America.
ative for the details.

THE

WORLD'S

GREATEST

account

the

company

and
a

the

common

will

selling stockholder. Price

—To be supplied by amendment
Proceeds—To acquire
aew bowling centers and increase
working capital (part
-n
bp used in defraying cost of
acquisition^ of stock of
owner

135

Front

Brooklyn (NY) bowling center.
Office—
St., N. Y.
Underwriter — To be named by

amendment.

F*a.
N. Y.

Underwriter

—

Charles

Plohn

(7/6)
shares of

■//'"

Ardmore, Pa.
••

it Bestwall

Gypsum (Co.
v'1
June 22 filed 75,769 shares of common stock
(par 40
cents). The shares being registered, have been or are be¬
ing offered to officers and key. employees of the com¬
under restricted stock options, a portion of which
to the public; by the optionees. "The
prospectus states that' the optionees, respectively, may
offer to the public all or a portion of the shares each of
pany

be offered

may

them

has acquired or. may hereafter
acquire, thereby
becoming selling stockholders.^ Such offering tq the pub¬
lic will be such time or times as the optionees
may

deter¬

mine, at such price as they prevails on the New York
Stock Exchange.
The selling stockholders will receive
the net proceeds of such sales.

■

•

• Big Apple Supermarkets, Inc.
June 24 filed 425,000 shares of
common stock
cents). Price—To- be supplied by amendment.

(par

Under¬

writer—Simmons & Co., New York,

it; Black, Sivafcls & Bryson, Inc. "
June 22 filed 152,100 shares
of common stock (par $1)
issuable upon the exercise of
outstanding warrants and
stock options.
• Brew (Richard D.)

& Co., Inc.,

June 23 filed

Concord, N. H.

110,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To go
to selling stockholders.
Underwriter
Lee Rigginson
Corp., New York.
—

•

Bridge' ampton

Road

Races Corp, ...
r
'ft
23 ("letter of notification)
15.000 <hares of common
stook /par $1) to be offered for su^^
ription by stock¬
holders of record Nov.. 1. 1958 on the
of
one

*?hare

for

each

four

held:

unsubscribed

new

offered to current creditors i»* oavment of all
part of claims, at the rate of one <hare for each
$4
claims discharged: rights to expire about
two weeks
*fter mailing of offer
Price—$4 •
hare
Proceeds—

common

share. Proceeds—
18th

Office—120 E. Lancaster Avenye,

Underwriter—None.
*

will

Astronautics Engineering Corp.
May 28 (letter of notification) 150,000
stock (par five cents). Price—$2 per
For working capital. Office—500 W.
NEWSPAPER

con¬

50,000 out¬
standing shares of common stock (par one cent). The
preferred shares are.to be offered for public sale for the
be offered for the account of

holder.

new

July

—

16,

share for each
7, 1959.
Unsub¬
scribed shares will be offered to the
public. Price—To
stockholders, $20 per share; to public, $21.50 per share. *
Proceeds—To repay 3V2% series A subordinated deben¬
tures and for working capital.
Office—246 N. High St., *
Columbus, Ohio. Underwriter
For pyblicly offered :
shares, Vercoe & Co., Columbus, Ohio. Company
reported ;
June 22. that the offering has been postponed. V '
'!

five

Corp.

Grazing & Pastoral Co,/ Ltd.
4,000,000 shares of common stock. Price—

filed

June

it AKden Electronic & Impulse Recording Equipment
♦' Co.,
Inc.
/. '
•
June 12 (letter of notification) 650 shares of convertible
.

(par 10 cents).

Robert Kamon is President.

Formerly

—

Apache Oil Corp.
May 25 filed 350 units of participation in the Apache
Oil Program 1960 and 70,000 rights for the
purchase of
common stock (par $1.25).
The offering is being made
only to the stockholders of the company. Each subscrip¬

March

derwriter—Amos Treat & Co., Inc., New York, has with¬
drawn

Corp., Seattle, Wash.

ISSUE

share.

corporate purposes. Underwriter

•

cattle;

Office—

common.

per

one for each five shares purchased. Price—$1.25
share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—To be named by amendment

REVISED

Underwriter—None.

rate of

Underwriter—
Cumberland Securities, Ltd., Regina, Canada.

Alaska Mines & Metals Inc.

ITEMS

-v

Street, Regina, Saskatchewan, Canada.

Feb. 25 filed 1,431,200 shares of common stock

for cash

Massillon

stock, of which,
the company proposes'to issue 126,072 shares to A.M.I.
Proceeds—To purchase equip- - Inc. for the latter's
fproperty
and
assets,
and the re¬
ment and supplies and for
working capital and other
maining 166,354 shares are to be issued upon the exercise
corporate purposes. Office—Salt Lake City, Utah.
Un- / of stock options.
Uttdcrwrtfer--TNonk Statement effec¬

filed

and

ADDITION9

SINCE

Australian

American Telemail Service, Inc.
Feb. 17, 1908, filed 37a,uou shares ot common stock (par

cents).

Underwriters

one

Highway, Norfolk, Va. Underwriter—±-aiombi Securities
Co., Inc., 37, Wall St,, New York, N.
Jan.

2020 Ridge Avenue, Evanston, 111.

Advanced

Dec.

for

common

of nouucacioii>; 300,000 shares mf class A

txcuer

stock

ceeds—For opening one additional traner sales lot and
for construction cost of mobile home pant. Address-^-3455

be offered in excnange lor common stock of Massillon
Rubber Co. on the basis of nine shares of American

—

<ii

common

American Hospital Supply Corp.
April 20 filed 20,610 snares of common stock (par $2) to

(6/25)..,.
May
common stock (par 10
cents). Price—$2.50 per share. Proceeds—For additional
equipment, operating expenses, working capital and pay¬
ment of notes. Underwriters
Milton D. Blauner & Co.,

■

Azalea Mobile Homes, Inc.

Ma.y

Securities, Montclair, N. J,.

Specialties, Inc.
12 filed 95,000 shares of

Inc. and Stanley Heller & Co.,

Registration

—To finance accounts receivable. Underwriter—Phoenix

Accurate

•

American Commercial Corp.
May 14 (letter of notification; zo0,000 shares of preferred
stock (par 50 cents) and 50,000 shares of Class A com¬
mon stock
(par 10 cent*) to be offered in units of five
shares of preferred stock and one Class A common share.
Price—$6 per unit.
Proceeds — For general business
purposes. Office—744 Broad St., Newark, N. J. Business

Academy Life Insurance Co.

March 31 filed 310,000 shares of common stock

;

* INDICATES

•

St., Hialeah,
Co., New York,

pav

eurrent

creditors

Addrev

RHdgebampton. L. T... N. Y. Underwriter

ing—Expected in July.

o
—

None. Offer¬

Number 5858

189

Volume

^ British Industries Corp.
June 24 filed 75,000 sharesfof . common^stock ''(par

5°

convertible preferred
stock, series A,1 (par $10) and 164,299 shares of common
•stock (par $1).
All of the preferred shares and 99,299

37,500\ shares -wiirbfe "offered for the
37,500 shares will be offered
for the account of certain selling stockholders. Price—To
be supplied by amendment. Proceeds—For working.cap¬
ital. Underwriter—Emanuel, Deetjeri & Go., New York.
Offering — Expected sometime-during the next three
weeks;
'' "■
422- v4"A''' "
"v;
-2
cents), of which

account of the company and

stock

common

certain

with

issued

will

connection

of businesses and assets;

acquisitions

the

65,000 common shares are reserved for issuance
under Employee Restricted Stock Options. Underwriter
other

>•—None.

.■••••

...

;

•.

;.•>

•

■

•

June 5 filed 80,000

($25 stated value). Price—$25 per share. Proceeds—To¬
gether with other funds, will be used to repay advances
from Central Electric & Gas Co.; for construction expen¬
ditures; for investment in stocks of subsidiaries; and for
other corporate purposes. Office—144 South 12th SE,

Lincoln, Neb. Underwriters—Paine, Webber, Jackson &
Curtis, New York; and Loewi & Co. Inc., Milwaukee.

{American Mineral Resources, S. A.

a
Century Brick Corp. of America (6/29)
April 6 (letter of notification) 150,000 shares of common

May 27 filed 620,000 shares of common stock, of which
6% 15-yeai
500,000 shares are to be offered for the account of the
convertible debentures.. Price—At par ($500 per unit)
Proceeds—For expansion and working capital.
Office— ^company and 120,000 shares for the account of certain
selling stockholders. Price—$1 per share. Proceeds—To
901 Seneca Ave.,; Brooklyn 27* N4 Y.
Underwriter
.
Sano & Co., 15 .William St., New York, N. Y.
Offering .finance acquisitions and to increase working capital.
Office—-161; East 42nd St., New York, N. Y. Underwriter
—Temporarily suspended by SEC, hearing scheduled for
—None.
!
22;; 4/,. }.':2<4 ■>v r'\
July 28; 1959.'■- - £
•;;; r^" ;■ V -:.)■';;

(letter of notification). ($2Q0,000 of

Dec.

(7/7)

shares of cumulative preferred, stock

Wis.

Central

Development Corp.

Brookrtdge

Central Telephone Co.

Buckeye Corp., New York
April 28 filed 192,039 shares of 5%

(2875)

Financial Chronicle

The Commercial and

Price—$2 per share.
Proceeds—To be added to
general funds of the company. Office—1020 G. Daniel
Baldwin Building, 1005 State Street, Erie, Pa.
Under¬
writer—Summit Securities, Inc., New York, N. Y.
4

stock.

Century Chemical Corp., New York (6/25-26)
(letter of notification) 100,000 shares of class A
stock (no par). Price—$3 per share. Proceeds
—For general corporate purposes, including purchase of
Wilson Organic Chemicals.
Underwriter—Singer, Bean
& Mackie, Inc., New York.
,
"
- '

June 3

common

mmUE: CALENDAR

NEW
June .25

Specialties,

Accurate

Inc; and .Stanley .Hellci;>A-Co.),
$237,500,^,. ; 4
' i r

"■

; ;

Steel! Co

Hausman

•,

Mississippi. Power

;

$5,odo,0oo-

Central
;

/ A

/tfy.(2.-;2,

A;/;

—.—Preferred

Co._^

Telephone

$2,000,000

Co., Inc.)

Inc.—-4-424-4222-1 „_42Debentures 222
j:22Mission Insurance Co.
and"Glore, >Fbi'gah2&~€d:).5$40,0&0,000 2/2/2/
2
(Shearson, Hammill

(Friday•).2

4222

■■

•;2Ni wr2;-" ■' 2

.r2v

(Summit

Securities,. Inc. > .$300,000

(ftichard Bruce <fe

y Montecatini

Cd'J^,i$390* ^'2 V.^.,'

Italy;---L_-22-22;t-y'_22_y_Debentures

(Lazard

Freres

Co., Lehniin Brothers and

.>.

;;:-

"v ^.,i

Precon

i:V■■

;y??-(:

1; Wellington

Plohn

;Land- Equities,

Cd.P $1,440, C00

2"^; Montreal
-

Airwork

hfi'

$200,00pV;y
;

•

invited!1'1 $20,000,000

>;*.:•

■

" v

•.1-.

Corp.

—__2„

July 1

(Wednesday

•

;

2.2.

Co.)

,2.';2 July 14

;

Common

90,000 shares

(Tuesday)

York.

White.TRqgers

I,£

2 "-v,;* \ Schercfc^Jchter.

:'~:W

V;-

Fanons

y.v.'.

,..->1-^\-rp

"i"

^"Astronautics

■

•=-»;>2(CharlesrPlohn & Co.).;$300;000

Clifton Precision Products; Go.,.

,y -.

,
(H. M. Payson & Co.) $286,650
Medearis Industries, Inc
_22,
2 2(Amos Treat & Co., Inc.) $750,000

.2".
wv

2,t«2-22 ; <\V. C. Lan&iej..& -bo. y 120,OOO..shafesxs''2**
■^2, -2/ First National Life Insurance Co.222—__IConwnon y
^
"f y
;?•: -'(Blair &; Co. Inc.) "$900,000
•y ";r/' Ideal Precision MeteP-'Co.; Ihc—ri---—-ICommon
-

Common

Water Co.—

2 Consumers

Inc.jyy„yCoffimon

Dominick) 55,930 shares

July 22 (Wednesday)

July ft (Monday.
,Engineering-.Corp.2_ „_22>i.2_Comnion

;f^2vy,-„y,r

Co.) $5,000,000

Chemicals, Inc.4—Common
..± -.y,
.-.v2 (Dominick & Dominick) 20,000, shares
U. S. Polymeric Chemicals, Inc
——,—Common
; (Offering to stockholders—underwritten by Dominlck &

■2,

Electronic2TndustHes, ' Inc7222^22L_Coinpion
Shermari k;CCc^)v,$45Oi000U'2v.^. i ' ; 2• y:--.-V v:

-Debentures

v".sU2S. Polymeric

Common

,2,f

Northern States Power Co.

V;
•*

•

.2. (Offering to

»yv '
r<(Charles> Plohn 4S-:(?o.) $615,625
••
'.2.♦•'''»
International. Recreation Cqcp^—--Confimon; s.
.2 m-j (Paine, Webber,./ Jackson &^.Curtis). $17,150,000 ^ '
2,
Jefferson Wire & Cable Cpr4J.l222____2-2Comm.on

and

,-y

a.22
f'4'

(Charles Plohn <Sa Co; and Netherlands Securities -Co., -S»c.) -*
-:^y- "
2- ;^'$375.0OO" >■ Michigan Seamless Tube Co
Common
(Paine,-Webber, Jackson ^Curtis) 100,000 shares*-... •
Oklahoma Cement Cb.2__lli-Debentures-CiwBiiaon/
2
'*22vy^(^aiJ:d'-&;c6:'iVorp^/'-2 ,2 „V
2.2 2 2 .
Ozark r Air .'Lines,4 Incri-222 2
222-2222-Common 'J.
(offering to stockholders—under written1 by-Newhard, Cook &
Co.Vand^.-Yates, Heitner2&^ Woods) $631,084 '
, 5
•
•* •'
Reheis Co., Inc.-——i
Common '

C.-2>
•*

Aetna Securities

Corp.)

$435,000

stockholders—underwritten by A. M. Law & Co
Landstreet & Kirkpatrick, Inc.) $100,000

Common
f
i-*".
-(Maltz, Greenwald & Cd.h 1,550.000 ShSreS) *"
hi.
standard* Aircraft- Ecfuipment Co.. Ine.--lCommon
" '.il'ff-'»
(Adams At Peck,).'$300,000^.
r •
.

Taft

Broa^^o+ine
(Harriman Ripley & Co. Inc.)

Common

Hudson Radio &

(J.

483,332 shares

shares of com¬

(10 cents per share). ProSo. Main St, Bait

Office—450

City, Utah. Underwriter—Earl J. Knudson & Co.,

★ Consolidated Cigar Corp.
75,000 shares of outstanding common stock

June 23 filed
•

(par $1). Priee—To be supplied by amendment Proceeds
go to selling stockholders. Underwriter—Eastman

—To

Dillon, Union Securities & Co., New. York.
Consolidated Petroleum

Industries, Inc.

April 30 (letter of notification) 80,000 shares of 6% con¬
vertible preferred stock (par $3.50) and 80,000 shares of
common stock
(par 10 cents) to be offered in units of
one share of preferred and one share of common.
(Pre¬
ferred stock may be converted into two shares of com¬
mon stock at any time.)
Price—$3.75 per unit. Proceeds
—For development of gas properties. Office—908 Alamo
National

Building, San Antonio, Texas. Under¬
New York, N. Y. Offering—
Temporarily suspended by the SEC:
I
Bank

writer—Frank

Lerner Co.,

6 Consumers Water

Co., Portland, Me. (7/22)
(letter of notification) 9,800 shares erf common
(par $1).
Price—$29.25 per share.
Proceeds—To
selling stockholders. Underwriter—H. M. Payson & Co.,

Narda
.....

Inc. and Netherlands

Microwave
(Milton

Pennsylvania
•t

Common
Securities Co., Inc.)6

$1,000,000

Common

Corp

Inc.) 50,000 shares

Blauner & Co.,

August 4
-

stock

Television Corp

A. Winston & Co.,

■\

Electric

August 5

Bondi
$15,000,000

(Wednesday)

Debentures

(Thursday)

Bond*

Georgia Power Co.

—
(Bids to be invited)

$18,000,000

•

Continental Tobacco Co.,

Inc. (7/1)
(letter of notification) 100,000 shares of com¬
(par 10 cents). Price—$1.25 per share. Pro¬
ceeds—For general corporate purposes. Office—607-12th
Avenue, Huntington, W. Va. Underwriter—Best Secu¬
rities, Inc., New York.
April 2

(Tussday)

(Bids to be Invited 1

Portland, Me.

mon

September 17
-

Price—At par

June 4

(Monday)

Pacific Power & Light Co
(Bids to be invited) $10,996,000

"r<Silver Creek, Precision Corp

;

Preferred

Clark.

■

try.

952,033 shares

——

August 3

'•

•

Inc

't'n'XY.
,

Paco Products,

Common

(Minn.)

stockholders—bids to be invited)

(Offering to
.

Salt Lake City, Utah.

—Equip. Tr. Ctfs.

2(Emanuel) Deetjen & Co. and Bachc &

stock.

Lake

(Thursday)

Reading Tube Corp.—.

■

Offering—Indefinite.

teeds—For Investment.

(Bids to be invited)

y.
:

■JAM

July 32(FHday)

July

?
it-,

mon

Debentures

Plywood Corp

Misouri Pacific Ry.-

Co,/__2_-;--21r_:-^_2,22_D.eben4iires ^
Co. and .Senijple.Vj^c.obi &;co.,,;Inc^). $1,(^8,000 y-

$690,000

(Myron A. Lomasney & Co.)

2,-.V' r- (Cruttenden, Podepta & Go.) -$500,000.v y!

-'3

States

'-Af-p'»(Eastman Dillon, Union Securities & Co.) $15,000,000

Superior Window' Co.2—2--2-_-_—^-Prefeired
-ys?-t • "ytyyy ^y;-A.;.• (C^uttenden, Podesta «Sc Co.) $500,000 >
i.v^y
:r
m**. Superior Window Co2__—2—2_2__Class A Common
.2?

.V :•

United

h,h«

-2*

...

vNarda Ultrasonics, Corp.-2221 _: —:
Contftion y ?
'imi.--^rtTorpie.';'teiSaltzman^*:;2/0,000^ shares
1% Najipnal ^Citi^s.;CQrpi2r
*„
< R.
F. .Campeau do,,':.'Inc.) S300.000. *",*X
'2,
,:v r~'.'

•

working capital. Office—Suite 421, 901
Street, Denver, Colo. Underwriter—Associated
Falls, Iowa.
<
,
:

Commercial Investors Corp.
Nov. 28 (letter of notification) 900,000

-•

l, th

notification) $220,000 of 6% unsecured

mortgage bonds duo
Sept. 1, 1968, $20,000,00 of subordinated debentures: duo
Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in units as follows: $1,000 of bonds and 48 shafes
Of stock and $100 of debentures AV*d nine shares of stock.
Price—To he supplied by amenument. Proceeds — To
construct refinery. Underwriter-Lehman Brothers, New

Commerce Oil Refining Corp.
Dec. 16,1957 filed $25,000,000 of first

■

•

Proceeds—For

Sherman

**'.'• A'

Co.

shares of common
(par $1) to be offered in units of $200 of deben¬
tures and one share of stock.
Price — $205 per unit.

'.^>750,000

2242

itock

Baird-Atomic, Inc.—
———.Common
iBuckinghanV ;Transpoftation ; InQ.-_ ___12
^Cnmmon' f* :
:;2';.2Cruttdhden2 Podesta2&;'rCpr) 250;000'>tharesyy;y / y/;;..; •2-.>r'v-;;2'T.
(White, Weld & Co.) 180,000 shares
-1'- y Continental Tobacco Co,, Inc.2_ _2_ _ _ _2 2 -Conortbon
Jersey Central Power & Light Co
Bonds
:•,
.,1.
^ ^••(Besti Hecurities,
;si25,'00(r;.ci'
.tvSS^Vj - :
2* 2 22y 2V '
(Bids 11 a.m. EDT) $8,000,000
>;^tt4(;->'Crbsby-Tcletfonic&; • eopp^2r22-2222S!£2-Common
A
July 15 (Wednesday)
.1
<Pw;*-/Myron A? Lomasney'&:rCo.K$843,750x-yy
4 2-f Funds for Business^Inc._^-22-------——Clqas A ;
•,2/ Hunter Mountain Development Corp. '
(Joseph MandeU & Co., Inc. and Robert L. Ferman <te Co.ylnc.)
Debentures & Common
•••

debentures due April 1, 1964 and 1,100

«_

100,000

Price—At market. Proceeds—

Securities 412 Main Street, Cedar

—f

(Kidder, Peabody & Co., Inc.)

stock.

Colorado Water & Power

$360,000

Trans-Sonics, Inc.

common

Feb. 25 (letter of

Common

Corp
Plohn

Fo? investment.

(Newhard, Cook & Co.) $6,000,000

' !

Design

Properties, *Inc.

Radar
22

^Colonial Fund/Inc., Boston, Mass.
22 filed
(by amendment) an additional

2 '2'

(Auchincloss, Parker & Redpath) 175,000 shares

(Charles

$6,000,000

Debens. & Com.
''"';2'';-: y-2;. T2S.'D. Fuller & Co.) $4,505,600
i r •:
2
Investors Funding Corp. of New York
Debens.
2y *2;:>: v
■> (Offering not underwritten) $500,000
' ,y
Mallinckrodt Chemical Works
Debentures

Canada,—1—2—---——i-Debent&res
tn

Dilbert's

Inc.ir_-:i:22;---i-—-T—-Common

-"-'mirfr

—-Bonds

(Monday)
_——pommon

July'13

y;.;/

•"

'■.."2.2.:

/22;2'-:--2(Bids to be invited>r.';$'2[5,000,000..i,

-'A
•

—White, Weld & Co., New York, and Dean Witter &
Co., Los Angeles, Calif. Offering—Expected late in July.

July 9 (Thursday)

June

2yV2y| - Long Island 1 Lighting, Co;- _ 2 - - - ^-2-—- -—- -Bpnds
:

Common

(Bids 11 a.m. EDT)

(Tuesday)

••••'.'2*■:*;, Lyon & -Co.,;-Inc?)

Colonial Energy Shares, Inc., Boston, Mass.
May 5 filed 1,100,000 shares of common stock.
Price—
At market.
Proceeds—For investment.
Underwriters

165,000 shares V '

Light, Heat & Power Co

Electronics, Ine,—;__Common 7*
(Charles

June 30

•;

'2,

Term inal iTo wpr Co. _ _
- - L - > - - ^
- - -Debentures :.k;
,T/.. (Fulton R?.iri.4s.'Co.>"$3,300,000. ;
^ ,ry.,... •»'

;;

-y .i

22 Union

manufacturing and engineering equipment, and the bal¬
ance for working capital.
Office — Clifton Heights, Pa.
Underwriter—W. C. Langley & Co., New York..

William R. Staats
.
i;-f "v..,
.2 ;

:y;2V Rowe Furniture Corp..
(Francis I. du Pont & Co.)

$390,000 of 8% first mortgage serial

bonds, to defray the cost of an addition to the company's
Clifton Heights plant, for the purchase of additional

Common

(Eastman Dillon, Union Securities & Co. and
& Co. > 3,000,000 shares

ih-/

i'Vf'A,*.''

"::.;W

ceeds—To prepay

Common

..
(Kidder, Peabody & Co.)
First Charter Financial Corp

Kuhn, ,XiOeb &;Go.) .-"$1,0,C00,000>!».v • - ; .;y.
Electronies Corp.—————Cnmmon

2A'.-r^5;2v

stockholder.

300,000 shares

;2.,'2

•

(7/6-10)

70,000 shares will be offered for the account of a selling
Price—To be supplied by amendment. Pro¬

_2_Common

40,000 shares 7T'.

.»;• ,2;,:.'Financial Federation, Inc

y :-'.;?' 'Ay--'

"A'2y';/ :;i"\';:2^;2; July 8 (Wednesday)

Electronics; Corp..—i_ 12—:i^.IC?wmon

Hereon
'

Products Co.v Inc.

128,000 shares of common stock (par $1),

shares are to be offered for public sale
by the company (plus an additional 8,000 shades to be
offered to officers and employees); and the remaining

Debentures

Corp._2

& Co.)

Putnam

Brick Corp. cc>f . Americqi^-^4--^pmmon y;y

Century

$10,000,000
Cable

St., Milwaukee, Wis. Underwriter—None,

of which 50,000

(Offering to stockholders—underwritten by

';v'\

yy^..;yy.y-Jun^ 29'3XMonday'^,......

r 22-2

Wire

Plastic

;

Water

Clifton Precision

June 11 filed

and Blytft':f& Co., Inc.)

Staats & Co.

(William R.

$5,000,000

L_-___2—

Northrop Corp.

; tWinslow,

General Precision Equipment Cori>:44242Preferred
(Offering to stockholders—-underwritten-- by The First Boston
;v2';-2 Corp. and Tueker, Anthony -& Ri L. Day.) -105,937 .scares j i t

.—Equip. Tr. Ctfs.

(Bids noon EDT)

Civic Finance Corp.

633

-Preferred
& Co.) $1,500,000 '

Northern Pacific Ry
2"22-y,,;-22-

Equipment;;Co.. __24t 2222.-22- ~i-Common
Cohu/& :§ietsoin,\Mb.) $360,000 y 2..

Federal
•2

•

and Loewi &

-f-(Paine, Webber, Jackson & Curtis

■

(Lehman Brothers

{/.; h;h:i June' 26

May 21 (letter of notification) 11,116 shares of common
stock (par $2) being offered on a share-for-share ex¬
change basis to stockholders of Milwaukee Loan & Fi¬
nance Co.
Offer expires on or before Aug. 1, 1959. Office

(Tuesday)

July 7

-::^:.rBonds y;;;

'<Bids 11 a.m." EPTi

;:.

Philip,. Morris.

Co.-and The . Ohio Co. ).
;
shares,. .'» •. -,.....,22 „! " 2:-22;.

80,000

;i'.;

2 2

$1,000,000

Darlington & Co.)

(Hill,

Common

—

Weil, Labouisse,. Prieclr1!ch.;,i&

(Howard,

Common

Oil Co.——

Chattanooga Industrial Development Corp.
37,500 shares of common stock. Price—
per share. Proceeds—For purchase and development
of industrial properties and for working capital. Office
—Chattanooga, Tenn. Underwriter—None,
March 25 filed

$20

(Charles Plohn & Co. and Netherlands
Securities Co., Inc.) $412,500

A/2

Voss

Mackie, Inc.) 3300,000

Bean

(Singer,

;'. -2

•2'.

Corp.—____'■!-1—Common

Chemical

-Common

2':; Tape Cable Electronics Co., Inc

;

-^'(Milton D. Blauner & Co.,
y*

i-22:4> Century

Common

Tang Industries, Inc
J :2V - ?
(David Barnes & Co., Inc.) $330,000

(Thursday) ^2.
y 42
Inc.2__r_______.Common ;

stock

Creo Mining Corp. Ltd.
April 17 filed 260,000 shares of common stock. Price—
80 cents per share. Proceeds—For exploration program.
Office—2100 Scarth St., Regina, Saskatchewan, Canada.

Continued

page

The Commercial and Financial Chronicle

(2876)

Continued from page
Underwriter

mining

Cumberland

—

Securities

also

Ltd.,

Drexelbrook

Oegina.

May 22

Crescendo Oil Co.,

Inc.

(SI per share). Proceeds —For
lease, labor, equipment, etc. Office—309*2 S. Third St.,
Las Vegas, Nev, Underwriter—None.
Price —At

and

for

working

if Federated.

Associates

(letter of notification)

shares of

bridge 41, Mass.
Co., Boston, Mass.

Crosby-Teletronics Corp.

tVTav

June

filed

250,000

stock

Offering expected in next few weeks.

loans

for

corporate

purposes.

—None.

cents). Price—S3.3712

per share.
Proceeds—For general
Office—54 Kinkel St., Westbury,
Business—Designing, manufacturing and
conducting research and development of highly tech¬

I..

Crowley's Milk Co.,
26'

Inc.
60,000 outstanding shares of common
Price— To be supplied by amendment.

filed

ctock (par $20).
Proceeds—To selling stockholders.

Ave., Binghamton, N. Y.
v

Crusader Life

Office—145 Conklin

—None,

May

shares of

Carew Tower,

DeKalb-Ogle Telephone Co.
May 27 (letter of notification) 19,822 shares of
offered

the basis of

then held with

stockholders

one

record

share for each

new

June

10,

10 shares

Price—No

held; rights to expire

(par $4).
Price—$12 per share. Proceeds—To increase capital and
surplus. Office—1230 East Camelback, Phoenix, Ariz.

Underwriter—Blair &

None.
•

New York
May 20 filed 227,368 shares of

173,286 shares

for

Industries, Inc.

Office—98

for

23 filed

cents).

220,000 shares of

common

stock

Underwriter—

—

For purchase of the

Dexter Horton Building in
Seattle, Wash. Underwriters
—Lifton Securities. Inc:, and Hechler-Weintrow Securi¬
ties, Inc. -:
v
•/;_
■•••'' •
*

(7/13-17)

June 11 filed $4,400,000 of
20-year 5

com¬

pro

ctock.

only about 16,000 shares are to be offered.
Price—$10.50 per share. Proceeds—To
selling stockhold¬
ers.
Office—911 Broadway, Kansas
Citv, Mo.. Under¬
writer—Midland Securities
Co., Inc., Kansas City, Mo.
Oiversitiad Inc., Amarillo, Texas
Jan. 6 filed 300,000 shares of
common stock
(par 50
cents). Price—$3 per share. Proceeds—For
acquisition
of undeveloped real
estate, for organization or acquisi¬

;

tion of
used

consumer

for

finance

working capital.

Service Co.. Denver

Colo.,

business, and balance

Underwriter
on

—
Investment
best efforts basis.

if Diversified Minerals Investments, Inc..
.

June
mon

lEHzabethton, Tenn.
15 (letter of
notification)
stock.

300,000 shares of

com¬

Foundation Investment Corp., Atlanta, Ga.

/an. 13 filed 231,988 shares of
common stock to be of¬
for subscription by
stockholders; unsold portion
to be offered
publicly. Price—$12.50 per share. Proceeds
—To repay notes.- Office—515
Candler Bldg.,
Atlanta,
Ga. Underwriter—None.
Statement effective April 2.
if Foundation Stock
Fund, Inc.
June 18 filed 100.000 shares of
common stock
(par $1).

Fran-Well, Inc.
May 25
mon

(letter of notification)
300,000
stock. Price—At
par ($1 per

Federated Corp. of Delaware
29 filed $918,000 of 6% convertible

Dec.

due

•

Funds For

1968.
The company proposes to offer
$210,000 of the debentures to purchase the capital stock
of Consumers Time
Credit, Inc., a New York company;
$442,000 of the debentures in exchange for Consumers

com¬

Business, Inc.

May 8 filed 500,000 shares
$1-50
Office

per

(7/1)

class A stock
(par 50 cents).
share. Proceeds—For
working capital
Street, New York. Underwriters—

120 East 41st

Joseph Mandell & Co.; Inc., New
York; and Robert L
Ferman & Co.,
Inc., Miami, Fla.

Futtennan-Dupont
subordinated

share). Proceeds—For
working capital. Office—100 E. Minner
St., Oildale, Calif.

Underwriter—None.

Inc.,' New Yrork, N. Y.

debentures

Price—At par ($1 per
share). Proceeds—For

son,

Office—

marketProceeds—For investment. Office—
St., Nashville, Tenn. Investment Adviser—
J.
Nashville, Tenn. Distributor—Capital
Planning Services, Inc.

Federal

Equipment Co. (6/26)
May 22 (letter of notification) 100,000 shares of common
stock (no par). Price—$3 per share. Proceeds—To
ac¬
quire all of the capital stock of Byer's Lumber
Co., Inc.
and for working capital. Office—North West
& Lincoln
Sts., Carlisle, Pa. Underwriter—Winslovv, Cohu & Stet¬

(par $1).

418 Union

York.

stock

investment.

C. Bradford &
Co.,

$100 per unit (flat). Proceeds—To be used for the
most
part for the purchasing of products by company's distrib¬
utors and dealers; and the balance will be used
for gen¬
eral corporate purposes. Underwriter—Allen
& Co., New
•

Inc.

common

Proceeds—For

fered

common

100,000 shares of

„

now held. Unsubscribed shares will be offered to the
public. Price—
Estimated at $140 per share.

18 filed

Price—At market.

St., Nashville, Tenn. Investment Adviser—J.
C. Bradford & Co.,
Nashville,Tenn. Distributor—Capital
Planning Services, Inc.

com^Fedders Corp., Long Island, N. Y.
stock (par one cent)'to be offered in
units consist¬
May 12 filed $3,812,300 of sinking fund subordinated de¬
ing of $50 principal amount of debentures and 12 shares
bentures, due May 31, 1979, with warrants to purchase
cf common stock.
Price—$51.20 per unit. Proceeds—For '152,632 shares of common
stock being offered for sub¬
repayment of notes; to develop and construct
shopping
scription by common stockholders in units of $100 of
centers and a super-market under
existing purchase
debentures with warrant for the purchase of four
shares
contracts and for working
capital. Office—93-02 151st
of stock at the rate of one unit for each 50
shares held
Street, Jamaica. N. Y. Underwriter—S. D. Fuller & Co..
on June
11,
1959; rights to expire on June 29. Price—
New York.

outstanding

300,000 shares
($1. per share). ProOffice—4334 S. E. 74th

418 Union

Proceeds—Working capital,
St., Clarinda, Iowa. <

Under¬

if Foundation Balanced Fund,

mon

OIT-MCO. Inc.
April 15 filed 30.000

stockholders.

mining expenses.
Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties, Inc., 4314 N. E. 96th Ave., Portland. Ore.

June

May 14,
the merger

par

ceeds—For

convertible de¬ ) etc. Office—106-108 W. Chestnut

bentures, due July 15, 1979 and 1,056,000 shares of

selling

rata basis of one-half share for each
share
:

and
upon

Fluorspar Corp. of America

(par five

days at book value as reflected by the
pany's books at the end of each 30-day period on

Flintkote acquired all

Feb, 5 (letter of notification—as
amended)
of common stock. Price—At

Price—$6

riod of 60

key employees.

Orangeburg in December, 1958, in exchange

Exchange.
Proceeds—To
writer—None.

May 19 (letter of notification) 1,531 shares of common
stock (par $100) to be offered to
stockholders for a pe¬

partnership interests.

and

under

Flintkote Co.

Farmers Mutual Telephone Co. of Clarinda
-

officers

subsidiaries

4 filed 143,789 shares of
common stock
(par $5).
This company on June 17 will
acquire ail the assets of
The Glen Falls Portland Cement Co.
(of New York) in
exchange for 369,858 shares of Flintkote Co. The
143,789
shares of stock are to be received
by certain share¬
holders of Glen Falls. Price—To be
related to the then
current market or current
price on the New York Stock

per share. Proceeds—To be used for
purchase and construction of machinery and equipment.
Underwriters—Charles Plohn & Co. and Netherlands Se¬
curities Co., Inc., both of New York.

Lone.

stock, of which

June

* Faradync Electronics Corp., Newark, N. J.
June

its

and

132,416 shares of preferred stock;
1959, it issued 615,617 common shares

"V"'

St., Brooklyn,
Co., New York.

Flintkote

of Blue Diamond into Flintkote.

(7/3)

Berriman

Sherman

Stock

the assets of

annual

Underwriter—L. D.

recently consummated merger of Real Estate

Properties, Inc.

•

Fanon Electronic

receivable.

Equities*, Inc., into DCA and the plan of reorganization

Dexter Morton Realty Co. '
June 15 filed $977,500 of limited
IPrice
$5,000 per unit. Proceeds

year

the

"Flintkote

common

to be offered to certain

of its officer and

standing bank loan; and the balance will provide work¬
ing capital to finance increased inventories and accounts

reserved for issuance upon conversion of shares of the
company's $1.25 cumulative convertible preferred stock
received by DCA common stockholders in connection

therewith.

Inter-

29 filed 150,000 shares of common stock (par 20
cents). Price—$3 per share. Proceeds—To retire an out¬

Development Corp. of America
April 30 filed 1,376,716 shares of common stock (par $1)

connection

are

key employees

Option Plan"; 16,771 shares are
subject to options granted by Flintkote in substitution
for options granted
by Orangeburg Manufacturing Co.,
Inc., to certain of its officers and key employees; and
37,311 shares are subject to options granted in substitu¬
tion of options granted by Blue Diamond
Corp. to certain

May

retirement of short-term notes, investment in
contracts,
mortgages and real estate, etc. Office—1930 Council St.,
Forest Grove, Ore. Underwriter—None.

$120

Co., Inc., New York.

Flintkote Co.,

61,708 shares of class A
to be offered to stock¬

Spokane, Wash. Underwriter—Pacific

than

common

First National Life Insurance Co.
(7/6)
4 filed 75,000 shares of
common
stock

Cincinnati, Ohio. Underwriter—None.

less

V'ZZ-;-of

(par $1)

June

premium
contracts and no less than
$1,500 for single premium
contracts. Proceeds—For investment, etc.
Office—2480
16th Street, N. W.,
Washington, D. C. Underwriter—

if Developers & Investors, Inc.
(letter of notification) 3,000 shares of common
etock.
Price—At par ($100 per share). Proceeds—For

Gilbert's

subordi¬

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.

June 15

consummated

convertible

Mountain Securities, Inc., for any
publicly offered shares.
common

Underwriter

to be offered for subscription by stock¬
holders and employees. .Price—At the market. Office—
804 American Title
Bldg., Detroit, Mich. Underwriter—«

Unsubscribed shares will be offered to the
publie. Price—$2.50 per share. Proceeds—For
working cap¬
ital and to obtain new
dealerships. Office — East 2626
Trent Ave.,

—

the

• First National Credit Bureau, Inc.
/"■■1
(letter of notification) 8,000 shares

stock

holders.
-

oversubscription privilege. Rights ex¬
pire on July 17, 1959. Price
At par ($10 per share),
proceeds—For a construction program. Office—112 W.
Elm St., Sycamore, 111. Underwriter—None,

with

then

(letter of notification)
common
stock (par 50 cents)

working capital. Office—Mearns Bldg., 142-148 N.
Washington Ave., Scranton, Pa. Underwriter—Sano &
Co., New York, N. Y.

stock

Boston, Mass.

v'■;

None.

4%%

May 14

«—For

1959,

common

■

June

Enamo-Bord Products Inc.

Inc.

June 30. Price—At par. Proceeds—To
repay outstanding
bank loans and for general corporate
purposes. Office—

March 25 (letter of notification) 300,000 shares oi com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds

and/or series

Address—P. O. Box 67,

—

nated debentures due July 1,
1979, to be offered for sub¬
scription by common stockholders of record June 5,
1959, at the rate of $100 of debentures for each eight

©meudment.

stock

number

—

Street, Jackson, Miss. Underwriter
///;.

Emery Industries, Inc.
May 21 filed $6,103,700 of

.15, 1959. The remaining
€53,387 shares will be offered publicly by the under¬
writer on a "best efforts" basis. Price—To be supplied
(by amendment. Proceeds—For repayment of notes and
for working capital. Underwriter —To be supplied by
Cycon,

shares of series

Corp. (7/8)
outstanding shares of common
stock, (no par). Price—To be supplied by amendment.
Proceeds
To selling stockholders.
Office —110 North
Doheny Drive, Beverly Hills, Calif.
Underwriters
Eastman Dillon, Union Securities &
Co., New York; and
William R. Staats & Co., Los
Angeles, Calif.

stock

Office—333 S. Farish

Gas

record

three

First Cnarter Financial
June 11 filed 3,000.000

holders.

Corp., Pass Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which
€41,613 shares will be offered on a one-for-one basis to
stockholders

each

West

•

held; unsubscribed shares to other stock¬
Rights expire 30 days from offering date
Price—$1 per share.
Proceeds—For working capital
common

writer—None.
Crusader Oil &

for

Office—210

Underwriter—Kidder,

Under¬
/ !

(letter of notification) 250,000 shares of series a
stock (no par) to be offered for
subscription
by stockholders on the basis of one share of series a
stock

capital.

(no par) Proceeds—Ap¬
invest in the commodity mar¬

proximately $100,000 to
ket.

—None.

common

working

of shares of beneficial interest

Emerite Corp.

Co., Inc. Zv : ; V
June 3 (letter of notification) 1,000 shares of common
ctock (par $50 )to be offered for subscription by stock¬
holders of record April, 30. 1959, on the basis of one new
chare for each two shares held. Rights expire Aug. 25,
1959. Unsubscribed shares will be offered to the public,
price—$150 per share. Proceeds—For working capital.
Office—640 Minnesota Ave., Kansas City, Kan. Under¬

for

Commodity Fund
(letter of notification) an undetermined

June 2

/an. 19

Insurance

and

First Boston

Office—901 S. Lake Street, Fariiiington, N. Mex.
writer—Investment Service Co., Denver, Colo.

Underwriter—None.

loan

St., Los Angeles, Calif.
Peabody & Co., New York.

Supply Co.
April 6 (letter of notification) 300,000 shares of class A
common stock (par 25 cents).
Price—$1 per share. Pro¬
ceeds—For inventory, equipment,
working capital, etc

Underwriter—Myron A. Lomasney & Co., New York.

bank

Seventh

Electric City

nical and specialized electrical and electronic equipment,

March

chases to people engaged

(par

and the balance for certain

pur¬

in the field of education and
for expansion of the company's capital structure. Office
—1704 11th Ave., South, Birmingham, Ala. Underwriter

common

is to be offered for the account of the company
selling stockholders. Price—
supplied by amendment. Proceeds—To repay a

ment)

automobile

Office—508 Ainsley Bldg., Miami, Fla. Under¬
R. F. Campeau Co., Penobscot
Bldg., Detroit,

F.nancial Federations, Inc.
(7/8)
May 27 filed 300,000 shares of capital stock (par $1). A
portion thereof (unspecified; to be supplied by amend¬

Investment Corp., of Alabama.

make

Industry, Inc.

—

tfich.

Underwriter—Schirmer, Atherton &

Proceeds—To

Chester,

•

$50.

(7 1)

writer

(letter of notification) $250,000 of 15-year 5%
general obligation debentures to be offered in multiples

Underwriter—None.

1958.
♦

Educators

For

Jec. 16 filed 200,000 shares of class A common stock.
Price—At par ($1.50 per share). Proceeds—For
working

com¬

and 12,559 shares of common ($1 par), 34,460
chares of the preferred and 9.059 shares of common are
issuable upon the exercise of stock options granted when
the assets of Norbute Corp. were acquired on Aug. 6,

Office—l South Mam Street, Port

Underwriter—None.

:apital.

100,000

mon stock
(par $1). Price—$3 per share. Proceeds—For
working capital. Office — 225 O'Brien Highway, Cam¬

par)

Finance

Streets, Philadelphia, Pa. Underwriter—None.

Crescent Petroleum Corp., Tulsa, Okla.
May 26 filed 48.460 shares of 5% convertible pfd. stock

($25

if Dunn Engineering Associates, Inc.
June

Thursday, June 25, 1959

iebentures; and $226,000 of the debentures in exchange
outstanding 12% debentures of three subsidiaries

filed

Chestnut

par

(or the

$2,000,000 of partnership interests, to be
offered in units. Price—$10,000 per \init. Proceeds—To
be
used
for various
acquisitions.
Office — Broad &

(letter of notification) 300,000 shares of common

June 1
Ctock.

leases, plant and equipment
Underwriter—None.

capital.

Hotel Co.

May 22 filed $1,706,900 of Limited
Partnership Interests

to be offered in units.
—To repay monies

title

and

Price—$25,000 per unit. Proceeds
borrowed for the
purpose of closing

paying incidental expenses

Dumont Plaza Hotel in
Washington,
Fifth Avenue, New
York, N. YT.

acquiring

D. C.

Office

the
580

Underwriter—None.
i

[Volume

189

Number 5858

The Commercial and

Grace

(W. R.)

& Co.

with

connection

stock to be issued
acquisition by the company of

the

withdrawn.

Honolulu Construction & Draying Co., Ltd.
June 16 filed 25,000 shares of common stock, to be

^Griggs Equipment Inc., Belton, Texas
June 10 (letter of notification) 18,891 shares of common
stock (par 50 cents). Price—At the market (estimated
at $6.50 per share). Proceeds—To go to a selling stock¬
holder. "Underwriter—Eppler, Guerin & Turner, Inc.,
Dallas, Texas.

fered

(par $5). Price—$7.50 per share. Proceeds—For
capital and surplus pursuant to North Carolina insurance
laws. Underw riter—None.
v."-

Growth Fund of America, Inc.
Feb. 4 filed 250,000 shares of common

Office —1825

•

Avenue,

—

50,000 shares of common stock (no par—
$3 stated value per share). Price—To be supplied by
amendment. Proceeds—To selling stockholders. Under-

writer—City Securities Corp., Indianapolis,

June

investment.

(letter of notification) 6,987 shares of common
(par $2.50) to be offered to employees pursuant

•
,

Ind.

• General Crude Oil Co.

by Seaboard Allied Milling Corp.

held

to offer

Merchandising Corp., Memphis, Tenn.
Feb. 18 filed 250,000 shares of class "A" common stock
(par one cent). Price—$10 per share. Proceeds—For

Seaboard plans

May 26 filed

Corp. (6/26)

June

the ratio of

common

be
in
one share of new preferred for each 11 shares
stock held and by holders of $1.60 preference

series in the ratio of

one

new

both of New York.
*

General Stores Corp.
Y
May 21 filed 1,884,278 shares of common stock (par $1)
to be sold from time to time

change.
the

the American Stock Ex¬

Price—Relating to the then current market on
Stock Exchange.
Proceeds — To selling

American

stockholders.

Underwriter—None.

General Underwriters Inc.

April 6

(letter of notification) 225,000 shares of com¬
capital stock (par 25 cents).
Of the total, 195,000
shares are to be offered for the account of the company

selling stockholder. Price—$1 per
share. Proceeds—For furniture inventory and improved
merchandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Pine
and 30,000 shares for a

St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff, Ark.
Glasco Corp., Muncie, Ind.
May 25 filed 100,000 shares of common stock (par $1).
Price—$10 per share. Proceeds—To be added to the gen¬
eral funds of the company and be used, together with
retained

earnings, to maintain its program of research
and development in the over-all field of commercial
refrigeration and more particularly in that of general
vending-machine design; and to reduce or eliminate the
necessity for seasonal short-term bank borrowings. Un¬
derwriter—Smith, Hague & Co., Detroit, Mich.
V.
...

^ Gold Medal Packing Corp.

(

Government Employees Variable Annuity
Insurance Co.

Life

Nov. 13 filed

2,500,000 shares of common stock (par $1)
to be offered by company viz: (1) to holders of common
atock (par $4) of Government Employees Insurance Co.,
on the basis of one warrant per share of stock held (1,834,570 shares

are now

outstanding); (2) to holders of

stock

(par $1.50) of Government Employees
Life Insurance Co., on the basis of V/2 warrants per share
of stock held (216,429 shares are now outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of V2 warrant per share of
Stock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
converted into common stock prior to the record date,
■ total of 164,733 common shares would be outstanding.
Price—$3 per share. Proceeds—For capital and surplus.
Office—Government Employees Insurance Bldg., Washfngton, D. C. Underwriters -— Johnston, Lemon & Co.,
Washington, D. C.; Eastman Dillon, Union Securities &
common

York.

Imperial Growth Fund, Inc.
shares of common stock. Price—At
Proceeds — For investment. Office — 60 Mar-*'

quette Ave., Minneapolis, Minn.- Underwriter
neapolis Associates, Inc., Minneapolis, Minn.

and,

•

Information Systems,

lit,

Inc.,

Panellit

rate

common

of one new share for each
shares held of record June 8,

(letter of notification)

research

Office—415 Spruce St.,

and

$1).
Proceeds—To selling stockholder.
&

Co.,

York.
withdrawn.
'

corporate purposes.

Office

—

Hillside, N. J. Underwriter—Myron

5 Evans Terminal,
A. Lomasney & Co.,

York, N. Y.
(D. H.)

June 5 filed 14,780

Co. Ltd.

shares of capital stock to be

offered

present stockholders on the basis of one new share
held of record June 25, 1959. Price—

for each 14 shares

$37.50 per share. Proceeds—For expansion program, for
working capital and other corporate purposes. Office—

Orleans, La.
T

Underwriter—Arnold & Crane, New
~~

Hammond, Ind.

(7/6)
,
shares ot common stock (par 59
later reduced by amendment to
980,000 shares. Price—$17.50 per share. Proceeds—For
construction and acquisition. Office—60 State St., Boston,
Mass. Underwriter—Paine, Webber, Jackson & Curtis,
International Recreation Corp.

May 14 filed 2,750,000
cents). The issue was

New

^ Hofman Laboratories, Inc.
June 12 (letter of notification) 50,000 shares of common
stock (par 25 cents). Price—$6 per share. Proceeds—To
retire a loan from Hillside National Bank and for gen¬

capital.,
Underwriter—

development costs and working

Agents

of common stock (par
Noel

82,626 shares of com¬

stock

of New

•

share.
Alstyne,

1959

(par $1) to be offered for subscription by
stockholders at rate of one new share for each
four shares held; Price—$3 per share. Proceeds — Fo*

mon

None.

per

three

April 16

Hoffman Motors Corp.

Offering—Postponed indefinitely. Statement

Inc., Skokie, III.

common

York.

Underwriter—Van

Co.,
best efforts basis. State¬

—

and plant improvement; to be used for inventory and
production requirements of the Hazleton, Pa., plant and
the increased production of the Edgerton, Wis., plant;
and for discharge of bank loan and other corporate pur¬

March 9 filed 250,000 shares

on a

20-day standby). Price—$3.50 per share., Pro¬
ceeds
To pay notes, for research and development ;
costs; and working capital. Underwriter—None.
International Bank, Washington, D. C.
Dec. 29 filed $5,000,000 of notes (series B, $500,000, twoyear, 3% per unit; series C, $1,000,000, four-year 4% per
unit; and series D, $3,500,000, 6-year, 5% per unit). Prt0O"
—100% of principal amount.
Proceeds —For working:
capital. Underwriter—Johnston, Lemon & Co., Wa*ington, D. C. Offering—Indefinitely postponed.
International Railroads Weighing Corp.
(with

Highway Trailer Industries, Inc.- ;
9 filed 1,105,294 shares of common stock to be
offered for subscription by present stockholders at the
rate of one new share for each two shares held (with an
oversubscription privilege). Price—To be supplied by
amendment. Proceeds—To be used for new equipment

poses. Office—250 Park Ave., New York, N. Y.
—Allen & Co. and Van Alstyne, Noel & Co., both

D. C.,

Urn-

April 21 filed 170,000 shares of common stock being of¬
fered for subscription by common stockholders of Panel-

June

"r*

denomination)

Ore. Underwriter—May & Co., Portland, Ore.

both of Washington,

existing liabilities; for additional equipment; and
working capital.
Office—East Tenth Street, P. O
Box 68, Great Bend, Kan.
Underwriter—Birkenmayer
& Co., Denver, Colo.

Orleans,

subordinated

$200,000

($1,000

ment effective Nov. 18.

(letter of notification) 285,000 shares of com¬
Price—At par ($1 per share). Proceeds—To

Holmes

notification)

debentures

operate graphite and mica properties in Alabama.
lerwriters—Dearborn & Co. and Carr-Rigdom. &

for

New

July 24 filed 600,000 shares of common stock (par on®
cent). Price—$1 per share. Proceeds—To develop an£

(6/29)

Corp.

pay

Industrial Minerals Corp., Washington, D. C.

stock.

New

(letter

Portland 4,

New York, N. Y.

Price—$10

Mis-,

$50,000 subordinated convertible 6% debentures ($500'
denomination). Price—100% of principal amount Pro¬
ceeds—For working capital. Office—522 S. W. 5th Ave.,,

Hickerson Bros. Truck Co., Inc.

eral

convertible

shares of common
stock (par one cent). Price—$3 per share. Proceeds—To
defray expenses; to pay outstanding notes; to purchase
equipment and to further manufacturing facilities.
Of¬
fice—481 Washington St., Newark, N. J. Name Change—
Company formerly was known as Hermetic Connector
Corp. Underwriter—Richard Bruce & Co., Inc., 26 Broad¬

•

—

Industrial Leasing Corp.

June

oil and gas properties. Office—702
Building, Portland 5, Ore. Underwriter
Hensley Co., Inc., 4444 California Avenue,

Hereon Electronics

mon

market.

May 21 (letter of notification) 100,000

March 11

(par 10'

March 2 filed 600,000

Seattle, Wash.

way,

(7/6-10)

137,500 shares of common stock

Brooklyn, N: Y. Underwriter—Charles Plohn & Co., New

For development ol

•

debenture®,

cents). Price—$3.75 per share. Proceeds—For planned! '
expenditures and working capital, and for payment of
certain indebtedness. Office — 126 Greenpoint Avenue*

American Bank

Earle

t
subordinated

Ideal Precision Meter Co., Inc.

•

May 19 filed

•

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; 12,500 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 Broad St., Utica, N. Y. Under¬
writer—Mortimer B. Burnside & Co., New York. Name
Change—Formerly Eastern Packing Corp.

June

Steel

filed

Hemisphere Gas & Oil Corp.
April 27 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceeds—

—D.

Development Corp.,

N. Y. (7/15)
$690,000 of 6%

filed

July 1, 1969, and 69,000 shares of common stock (parY
10 cents) to be offered in units, each unit consisting of a v
$50 debenture and 5 shares of common stock. Price—$50
per unit. Proceeds — For purchase of equipment," for
building of lodge, and for other corporate purposes. Un¬
derwriter—Myron A. Lomasney & Co., New York.

Heliogen Products, Inc.
Oct. 22, 1958
(letter of notification) 28,800 shares of
common stock (par $1).
Price—$5 per share. Proceeds—
For payment of past due accounts and loans and general
working capital.
Office—35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., Suite 1512,
11 Broadway, New York 4, N. Y.

mon

due

Underwriters—Howard, Weil, Labousse, Friedrichs &
Co., New Orleans, La.; and The Ohio Company, Colum¬
bus, Ohio.

share for each 16V2 shares

—

June

Price—To be

$1.60 preference stock held on June 25; rights to ex¬
pire on July 13. Price—To .be supplied by amendment.
Proceeds
For working capital. Underwriters — The
First Eoston Corp., and Tucker, Anthony & R. L. Day,

Mountain

Hunter,

Co., Toledo, Ohio (6/25)
80,000 shares of common stock (par $5).
supplied by amendment. Proceeds—To re¬
tire short term bank loans, for general corporate pur¬
poses
and for expansion of the company's business.
Hausman

minimum of 105,928 shares of cumulative

Co., Inc.

Hunter

stockholder, Seaboard Allied Milling Corp. Office—
Hathaway St., Syracuse, N. Y. Underwriter—None.

convertible preference stock ($50 liquidating value) to
offered for subscription by holders of common stock

reduction

curities

100,000 shares for sale to the business associates
Hathaway Industries at $6 per share.

addition, Seaboard may wish to sell publicly the re¬
maining 200,000 shares, or a portion thereof, 011 the
American Stock Exchange, or otherwise,*at prices cur¬
rent at the time of such sales.
Proceeds—To selling

Price—$5 per share. Proceeds—To be util- *
of obligations, the acquisition and/or.
development of additional inventory lines, warehousing,
facilities and sales outlets; the adoption of various sale®
promotional programs, and as additional working capi—:
tal. Office—37 West 65th St., New York, N. Y. Under- ;
writer—J. A. Winston & Co., Inc. and Netherlands Se- ized

working capital and general corporate purposes. Under¬
writer— Union
Securities
Investment Co., Memphis,
Tenn, Statement effective April 24.

;

filed

stockholder.

and employees of

General

(8/3)

200,000 shares of capital stock, of which. i
125,000 shared are to be offered for the account of the*'
company and 75,000 shares for the account of a selling: -

June 9 filed

None.

Hudson Radio & Television Corp.

June

Hathaway Industries, Inc.
300,000 outstanding shares of common stock.
These shares are part of the 672,990 shares (53.43%)

Stock Purchase Plan. Price—At the
median between bid and ask, over-the-counter on June
1, 1959. Office—c/o Andrews, Kurth, Campbell & Brad¬
ley, 2200 Gulf Bldg., Houston 2, Texas. Underwriter—
Employee

General Precision Equipment

market.

Connecticut

^-Hamilton Funds, Inc., Denver, Colo.
June 22 filed (by amendment) $10,000,000 of Hamilton
Fund Periodic Investment Certificates. Proceeds — For

•

of¬

for

1959,

stock (par 10
Underwriter—None.
]
Proceeds—For investment.
Household Gas Service, Inc., Clinton, N. Y. ^
Washington, D. C
!
•
t
Investment
Advisor
Investment
Advisory
Service, : May 25 (letter of notification) 5,000 shares of common >
stock. Price—At par ($10 per share).
Washington, D. C. Underwriter—Investment Manage¬
Proceeds—For I
ment Associates, Inc., Washington, D. C.
repayment of debt; purchase of equipment and for work-i
ing capital. Underwriter—Mqhawk Valley Investing Co.,
Hamilton Cosco, Inc., Columbus, Ind.
Inc., Utica, N. Y.
YY : •
June 3 filed
Price—At

cents).

General Aniline & Film Corp., New York
Jan. 14,1957 filed 426,988 shares of common A stock (n*
par) and 1,537,500 shares of common B stock (par $1) r
Proceeds—To the Attorney General of the United States .'r
Underwriter—To be determined toy competitive bidding
Probable bidders: Biyth & Co., Inc., and The First Bos- :t
ton
Corp.
(jointly), Kuhn, Loeb & Co.; Lebmmi.
Brothers, and Glore, Forgan Sc Co. (jointly). Bids—Had Y
been scheduled to be received up to 3:45 pjn. (EDT) 01 *
May 13 at Room 654, 101 Indiana Ave., N. W., Washing
ton 25, D. CM but bidding na» oeen postponed. *
- * '
;

the

subscription by stockholders of record April
the basis of one new share for each five
shares then held. Rights to expire 011 or about July 30.
Price—$40 per share. Proceeds—To be applied to repay- *
ment of bank loans and for company's capital expendi¬
ture program and investment. Office—Honolulu, Hawaii.
30,

stock

•

• Gateway Life Insurance Co., Rocky Mount, N. C.
June 8 (letter of notification) 40,000 shares of common

stock

Tulsa, Okla.
^
116,667 shares of common stock (par $6).
Price—$6 per share. Proceeds—For working capital anA :
general corporate purposes.
Office — 2202 Philtowar
Bldg., Tulsa, Okla. Underwriter—None. Statement to be

Chemical Co.

Hatco

Home-Stake Production Co.,

Nov. 5 filed

June 16 filed 126,000 shares of common

•

Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed.

•

Gate City Steel Co., Inc., Omaha, Neb.
May 26 filed- $1,250,000 6% sinking fund debentures, series A, due May 1, 1969, of which $350,000 will be
offered, on an exchange basis, for a like amount of 5% • Y
debentures which the company plans to retire. The re¬
maining $900,000 debentures will be offered publicly.
Price—Par. Proceeds—For advances to company's sub- >
sidiary, Moffett Engineering, Inc.— Underwriter—First
Trust Co., of Lincoln, Neb. Offering expected early in
July.
"
J'
V
;;Y ;

37^

(2877)

Financial Chronicle

New York and

Boston.

International Tuna Corp.

April 3

(letter of

■

notification) 175,000 shares of clatt
shara*.
Offica.
& Co*

(par 50 cents). Price — $1 per
equipment and working capital.
—Pascagoula, Miss. Underwriter—Gates, Carter
Gulfport, Miss.

A common stock

Proceeds—For

Trust Co.
notification) 56,185 shares of common;
stock (par $1) to be offered first to stockholders; un¬
subscribed shares will be offered to the public. Price—,
To the stockholders, $3.80 per share; to the. public, $$.;
4

Investment Life &

June 12

(letter of

Continued

page

'iy

(2878)
The Commercial and Financial Chronicle

Continued

from

page

Lifetime Pools
Equipment Corp., Renovo, Pa.
(letter of notification)
150,000 shares of common
stock (par 10
cents). Price—$2 per share. Proceeds—
For purchase of
machinery and

Mobile Credit

June 1

share. Proceeds—For working capital. Office—123 S.
Main St., Mullins, S. C. Underwriters —
Frost, Read $
Simons, Inc. and Silcox & Johnson, both of Charleston',
per

and

Investors

Feb.

Funding Corp. of New York

filed $500,000 of

10%

(7/13-17)

;

-r

for

common

stock. Price—90

defray the costs of explo¬
ration and development of properties and for the ac¬
quisition of other properties; also for other corporate
purposes.
Office—1950 Broad St., Regina, Sask., Can.
Underwriter
Jamaica

Laird

Rumball, Regina, Sask., Can
Development Co., Inc.
—

June 15 filed 105,000 shares of

common stock. Price—$10
share. Proceeds—To be used for the purchase of land,
cattle, machinery and equipment, fishing lodge, and
development expense. Office—1841 North Meridian St.,

per

Indianapolis, Ind. Underwriter—None.
•

Jefferson Wire & Cable
Corp. (7/G-lO)
May 27 filed 100,000 shares of common stock (no par).

Price—$3.75

per

share.

Proceeds

for

'•!•*}*'

for

working capital. Office—Sutton, Mass.

writers—Charles Plohn & Co. and Netherlands Securi¬
ties Co., Inc., both of New York.

toon,

pany's 1959 construction program or to reimburse the
company's treasury for expenditures for that purpose.
Underwriters—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.;
White,
Weld & Co.; Kidder,
Peabody & Co.; Eastman Dillon,
Union Securities &
Co.; Salomon Bros. & Hutzler and
Merrill Lynch, Pierce, Fenner &
Smith, Inc. (jointly).
up

to 11

(EDT)

a.m.

../.t

Kaiser Aluminum & Chemical
Corp.
May 11 filed 84,028 shares of 4%% cumulative convert¬
ible (1959 series) preference stock
(par $100) and 128,051 shares of common stock
(par 'SV/z

cents) issued in
exchange for the outstanding stock of Mexico Refrac¬
tories Co. through merger. Proceeds—To
selling stock¬
holders. Underwriter—None. Statement effective June
5.
<

Kaltman

(D.) & Co., Inc.
May 13 filed 1,406,141 shares of

of its 745,184 outstanding common shares
at the rate of
1,9 shares of Kaltman common for
each share of- Noma
common
stock held on June
11; rights to expire on
June 26.
Price—$4 per share.
Proceeds—To selling
stockholder.
Underwriter—Bear, Stearns & Co., New
York.
■

;

it Keystone Custodian Funds, Inc.;
Boston, Mass.
June 22 filed
(by amendment) 1,000,000 of Keystone
Custodian Fund certificates of
participation, series B4,
and

Keystone
participation, series S3.

Custodian

Fund certificates
Proceeds—For investment.

Kilroy (W. S.) 1960 Co.
June 8 filed $3,500,000 of
Participating Interests under
Participant Agreements in the
company's 1960 Oil and
Exploration Program, to be offered in
amounts of
$25,000 or more.

Proceeds—Acquisition of undeveloped
oil and gas
properties. Office—2306 Bank of the South¬
west Bldg., Houston
Texas. Underwriter—None.
Land

Equities, Inc., Santa Monica, Calif.

May 12 (letter
common

stock

ceeds—For

(6/30)

notification) 200,000 shares of class A
(par one cent). Price—$1 per share. Pro¬

general

corporate

purposes.

Underwriter—

Ross, Lyon & Co., Inc., New
York, N. Y.
i
Laure Exploration
Co., Inc.,

purposes.

Underwriter—None.

Laymen Life Insurance Co.
May 27 (letter of
notification) 60,000 shares
ar

of common

offered to stockholders of record
May 29, 1959 on a share-for-share
basis. Rights ex¬
pire June 30, 1959.
Price—$5 per share. Proceeds—For
working capital. Office—1047
on

Broadway Anderson, Ind.

stock, to be of¬
by holders of
outstanding stock on

basis

of one new share
for each
the period
ending June

25, 1959.

stockholders; $6
increase

capital

Price—$5

held
per

during

share to

share to the public.
Proceeds—To
and surplus.
Office —17°6
per

Centenary
Boulevard, Shreveport, La.
Underwriter—None.
Liberty Income Fund,
Inc., Houston, Texas
June 17 filed

700,000 shares of capital stock
(par $1) and
$5,000,000 of monthly plan certificates.
Price—At mar¬
ket. Proceeds—For
investment. Underwriter—None.
• Lieco, Inc.
June 12 (letter of
stock (par 10

notification) 100,000

cents).

shares of

common

Price—$3 per share. Proceeds—
For
machinery and laboratory
equipment; for consolida^tion of operations in
one
plant; for retirement of cor¬
porate debts and for
working capital. Office—47 Bergen
St., Brooklyn, N. Y.
Underwriter—Netherlands Securi¬
ties Co.,
Inc., and J. A. Winston & Co.,
Inc., New York,
N» Y.

into

Hart and; Salomon

common

stock

which

consist

one

None.
•

Medearis Industries, Inc.
(7/22)
I
14 filed 200,000 shares of common stock
(par 20
cents). Price—$3.75 per share.
Proceeds—For general
corporate purposes. Office
42
Broadway, New York,
N. Y. Underwriter—Amos
Treat & Co., Inc., New York.
Mercantile Acceptance
Corp. of California
May J5 (letter of notification) $80,000 of
12-year 5^%
capital ^debentures. Price—At face amount.
Proceeds—

general

connection with
of the

funds

the

company

and

used

program of expansion of the facilities
Tube Corp.) scheduled for

completion

September
&

1960.

Underwriter

—

Paine, J

Curtis, New York.

Micronaire Electro Medical

Products Corp.
June 1 filed
200,000 common shares (par 10 cents)

of common stock and 25
warrants.

The registration also
an additional
200,000 three-year warrants, exer¬
cisable at $3, of which
150,000 have been issued to cer¬

includes

stockholders and employees.
Proceeds—To discharge
son

Price—$275

indebtedness; for

per

unit.

expansion of

efforts; and for working capital.' Office—79 Madi¬
Ave., New York. Underwriter
General Investing
—

Corp., New York.

it Mid-America Minerals, Inc.
filed $921,852 of
Working Interests and Over¬
riding Royalty Interests in 26 oil and
gas leases
June 22

lands

Green

and

Narcfa Microwave ■
Corp.: (8/3)
>«:' #'
June 16 filed 50,000 shares
.of common stock

(par 10
cents) and-50,000 warrants1 to be offered in units, con--,
sisting of one share'of common stock with attached

entitling the holder to purchase

share.

The statement also

:/•//.-

•

Narda

covering

Taylor

Counties, Kentucky, some
being producing interests and some nonThe offering is to be made
initially to par¬
and

per smallest unit.

gas

lands.

Proceeds—For invest¬
Office—Mid-America Bank
Underwriter—None.

Millsap Oil & Gas Co.
Dec. 23 filed 602.786
shares of common stock.
per share.
Proceeds — For additional
Office—Siloam Springs. Ark
•

Mission insurance
Co.,

(7/7)

Co.

(6/25)
May 29 filed $5,000,000 of first
mortgage bonds due July
1, 1989.
Proceeds—For construction program.
Under¬

writer—To be determined
by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon,
Union Securities &
Co. and Equitable Securities
Corp.

(jointly); Merrill Lynch, Pierce, Fenner &
Smith; Kid¬
der, Peabody & Co. and
White, Weld & Co. (jointly).
Bids—To be received
up to 11 a.m. (EDT) on June 25

at the office of the
service company, Southern

[
.

Corp.

'•.'

■

"';; -/';/;

(7/1)

National Citrus Corp;--(7/l)-."/

(letter of notification)

150,000 shares of com($2 per share).
Proceeds—
For new equipment, inventory and
working capital. Address—P. O. Box 1658, Lakeland, Fla.
Underwriter—
R. F. Campeau Co., Inc., Detroit, Mich.
;
m'on

stock.

•

Price—At par

National Life & Casualty Insurance Co.

March
to

25 filed

offered

insurance

250,000 shares of
to

holders

policies issued

Central

company's

prior to Dec. 31,
Price—$4.44 per share.

certain employees.
increase capital

capital stock

common

certain
or

and

life

1955,

Pro-

surplus.: Office

— 2300 ,
Underwriter—None.;

Ave.,' Phoenix, Ariz.

Nationwide Small Business Capital
Investing
Corp.
April 24 filed 500,000 shares of capital stock (par 50
cents). Price — $1 per share. Proceeds
For working
capital and investments:
Office—Hartsdale, N. Y. Un-"
—

June 3 filed 150,000 shares
of 10% cumulative convert¬
ible preferred stock
(par $5). Price—$10 per share. Pro¬
ceeds— For additional
working capital. Underwriter -rShearson, Hammill & Co., New York.

Mississippi Power

additional .'

■

Price—$1

working capital.
Underwriter—None

Pasadena, Calif.

Ultrasonics

•

April 20

producing.
ticipants in the Mid-America
Minerals, Inc., 1959 Fund.
oil

one

additional 10,000
issuance to key

for

April 29 filed'.20,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds— :
To retire a $100,000 outstanding bank loan and the bal- *
ance will be used for general
corporate purposes, Office— !
Westbury, Long Island,' N. Y. Underwriter — Torpie & /
Saltzman, New York.. !-:v /
'
/

and to

includes

reserved

loans. Underwriter—Milton D. Blauner &
Co., Inc., New
York.. • '•

ceeds—To

ment

stock

common

employees pursuant/to options. Price—To be supplied
by amendment. Proceeds
To be used to retire bank

of the interest

Price—$2,221.33

..'!

and

50,000 one-year warrants for the
purchase of common
stock, to be offered for public sale in units of 100
shares

tain

V-".**-"'

•

—

subsidiary (Gulf States

Webber, Jackson

/ / ■ V
member-V

ship debentures to be offered 4o employees and member dealers. Price—$40 per, debenture.
Proceeds—For work¬
ing capital.'Office —^ .2361 Hampden
Ave., Saint Paul^/,
Minn. Underwriter—None.

warrant

(7/6)
100,000 shares of common stock (par
$5).
Price—To be supplied
by amendment. Proceeds—To be
10 filed

ir Mutual Dealers Wholesale, Inc.
June 1 (letter of. notification) 557 series C:A"

;

Michigan Seamless Tube Co.

added

For

•

June 30.

Multi-Amp Electronic Corp..: :- May 1 (letter of notification) • 99,500 shares of common '
stock (par'10* cents): Price—$3 per share. Proceeds!
To purchase
building; for research, development, equip
/(
ment
and;, machinery,} etp.; and for
working , capital %'
Business—Portable and laboratory instruments for test
;
ing etc.
Office—465-Lehigh Avenue, Union, N. J. Un
derwrPer—J. R. Boland &
Co., Inc., 30 Broad Street, New \
York, N. Y.
ur.

;

May

working capital. Office-*-333 Montgomery
Street,
San
Francisco, Calif. Underwriter—Guardian Securities
Corp., San Francisco, Calif.

& Hutzler

•

;

of class
A, voting, and three shares of class B,
non-voting stock at $40 per unit. Proceeds—To purchase
machinery and equipment and for working
capital. Ad¬
dress—P. O. Box
755, Norman, Okla. Underwriter—

June

Bros.

Bids—Expected tor be-received

Inc.; »
(jointly)./

Savard

Co.

units

for

(letter of notification) $250,000 of 6% convertible
subordinated debentures due
July 1, 1964, and convertible

//:py

improvements due Jan.; 15; 1980 and $11,900,000
of sinking fund debentures for
public works, due Jan. 1,:
1980. Price—To be supplied
by amendment. Proceeds—
For various public works
projects and .for repayment
of borrowings incurred
{for. such purposes. Underwriter
—To be determined, by
competitive bidding. Probable /
bidders: Lehman Brothers, White, Weld &
Co., Eastman ;
Dillon, Union Securities-r& Co* and Blyth & Co., , Inc.
(jointly)!;? Shields &C £q., . Halsey, Stuart & Co/;,

—

Bldg., Oklahoma City, Okla.

Lee National Life
Insurance Co.
June 11 filed 200.000
shares of common
fered for
subscription
the

June

local

June 1

sales

Arnett, Okla.
April 30 filed (by
amendment) 2,000,000 shares of com¬
mon stock
(par $1). Price—$2 per share.
Proceeds—For
machinery and equipment and
exploration

Underwriter—None.

exploration, develop¬

Mallinckrodt Chemical Works
(7/13-17)
8 filed
$6,000,000 of convertible subordinated de¬
bentures due July 1, 1974. Price—To
be supplied by
amendment. Proceeds—To retire
outstanding 6% cumula¬
tive preferred
stock, series B, and for general corporate
purposes.
Office—3600 North Second St., St.
Louis, Mo.
Underwriter—Newhard, Cook & Co., St. Louis, Mo.

Gas

•

Montreal; Canada- (6/30)>;W
5 filed $8,100,000:of
sinking fund debentures

Price—60

Underwriter—None.-'.""'//._/;

Office—5 Cobbold Block, Saska¬
Canada.
Underwriter
Cumber¬

—

common stock
(par 50
cents) being offered by Noma Lites,
Inc., to the holders

1,000,000

stock (par $1). .Price—Of
debentures, at par; of
stock, $2.50, per, share, proceeds—To retire bank debt and
working capital.

common

June

Maturizer

and

Npw'Yoirk.^;;^

Emporium, Pa.

capital stock.

For

in'p./

^ Montek Associates, Inc., Salt Lake City, Utah
A:
15 (letter of notification)
$60,000 of 10-year con¬
vertible debentures due July.-l, 1969 and
20,000 shares of

land Securities
Ltd., Regina, Saskatchewan, Canada.

Jersey Central Power & Light Co. (7/14)
May 21 filed $8,000,000 of first mortgage bonds due
July
1,1989. Proceeds—To be applied to the cost of the com¬

Bids—Expected to be received
July 14.

acquisitions.

Saskatchewan,

mining!,Proceeds—For/construction

June

& S.

ment and

and

for

—

Under¬

Services,
Inc., Room 1600, 250 Park Ave., New York
17, N. Y.

plant for the manufacture of/iso-/: p.
other, petrochemicals. 'Under-/'
writers —,£.azard Freres &
Co., Lehman Brothers and <;,!
Kuhn, Loeb W. Co.,'all Of

Statement effective.

Oils Ltd.
May 11 filed 390,000 shares
cents per share.
Proceeds

indebtedness, for purchase of machinery, equipment and
raw
materials, for plant facilities, for sales promotion,

and

production

the United States of
static polypropylene

pur¬

and

approximately $500 ;at £

^.To be supplied by apiendment.^

Business,—The. largest c»mRany in Italy in both
chemical;

Offices—Wilmington, Del.,!

J6/29^7/3£&£&;

date

poses.

conditional

2 filed •' $10,000,000 • of

shares having a market.value of
of issue./Price

purposes.

Underwriter—None.

sinking fund dollar deben- .l
15,1979,'and warrants to purchase capital>•shares of the eompany. The debentures will be offered in *
units consisting of a debenture in the
principal amount: a
of $1,000 and
a-warra'^
a" number of capital -.

Underwriter—To be determined by /
competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.;
Blyth & Co., Inc. and The First Boston
Corp
(jointly); W. C. Langley & Co., and Smith,
Barney &
1 Co. (jointly). Bids—Expected on or about
June 30.
/ /
T !' LuHoc
Mining Corp.
'
'
Sept. 29 filed 350,000 shares of common stock.
Price—$1
per share.
Proceeds—For the acquisition of properties :
under option arid for various
geological expenses, test
drilling, purchase of equipment, and other similar

To pay off various

—

such

;

working capital '

interests

tures due June

•

April 24 filed 225,000 shares of

of-vendors'

T,r

Montecatini

June

Long Island Lighting Co. (6/30)
y'/y
May 28 filed $25,000,000 of first
mortgage bonds series
>K, due 1989. Proceeds—To be used for construction of
utility plant and to pay short-term bank
loans made

cents per share. Proceeds—To

purchase

-None.
•

—

Exploration, Ltd.

Proceeds—To provide additional

the

Office—11746 AppletonJ-Ave.v Detroit; Mich. Underw riter

(letter of notification)
12,500 shares of 6% pre¬
ferred stock. Price—At
par ($10 per share). Proceeds—
For
working capital. Office
731 Main St:; Klamath
Falls, Ore. Underwriter—None.
•.v*""
'■ *

•

Irando Oil &

sales contracts and other like evidences of indebtedness.

June 12

due July 31, 1904, to be offered in units of $1,000. Priei
—At 100% of principal amount. Proceeds—For invest¬
ment. Office—511 Fifth Ave., New York, N. Y. Under

writer—None.

Thursday, June 25, 1959

per

share!

Underwriter—First

• Little Restaurants, Inc.

subordinated debenture#

June 8 filed 15,000 snares of common stock to be offered
;
for sale in Michigan and Pennsylvania.
Price—$10

equipment; advertising
Washington
//;>/%.;
:{ !/

working

capital.
Corp., Pittsburgh, Pa.

S-C.

Corp.

derwriter—None.

Vi
.

Nay lor

Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumulative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For
organizational ex¬
penses

and first three months' operational

fice—1250 Wilshire

writer—Waldron &
.

expenses.

•
+

Of¬

BlvdJ, Los Angeles 17, Calif. UnderCo., San Francisco 4, Calif.

Nedow Oil Tool Co.

May 5 (letter of notification) 150.000 shares of common 1
stock (par 50 cents). Price—$2
per share. Proceeds—To "
acquire fishing tools for leasing; and for
working capital. *'
Address—P. O. Box 672, Odessa, Texas. Underwriters— •
To be designated.
New

Pacific Coal

June 11 filed

Oils

Ltd.

1,265,000 shares of

1,000.000 shares

will

offered

common

for

the

stock, of which
account

company; 100,000 shares will be offered for the
of a selling stockholder

(Albert

Mining

the

account

Corp.

Ltd.);

■

Volume

Number 5858

189

The Commercial and Financial Chronicle

and the remaining 165,000 will be paid as additional
compensation to brokers and dealers. Price—Related to
the then current market price on the American Stock

ferred

Exchange.

of five

ment

Frooeeds—To repay bank loans, for develop¬

and for general corporate purposes.

properties,

Office—145 Yonge Street.
—None.
J - •. *„•/.,
.

New

March
offered

York

Shipbuilding Corp.

iilea bo,8^4 snares of
in exchange for common

for

one

offer
June 30. ..Statement effective April 16.
V

(letter of notification)

Corp.
$300,000 of 6% 10-year

for subscription
by stockholders in .denominations of $100, $500 and
$1,000 each. Rights will expire July 31, 1959. Price—At
par.
Proceeds—For working capital. Office—Suite 487,
subordinated

debentures

795 Peachtree

None.■'
•

offered

Street, N. E., Atlanta, Ga.

•'

Northern States Power Co.

June 9

Underwriter—

A"-//-'"j*
(7/22)

filed

952,033 shares of common stock to be of¬
fered for subscription by common stockholders of record
about July 23 on the basis of one new share for each

Products, Inc., Pacolet, A. C. (7/22)
(letter of notification) 2,000 shares of 7% pre¬

stock

stockholders

rate

jfor each 1,000 shares held; unsubscribed

to holders

first

amount

offered first

notes

then to

Price—At par

public

&
Co., Spartanburg, S. C.; and Clark,
Kirkpatrick, Inc., Nashville, Tenn.

Landstreet

I filed

•

Mich.

^ Producers Life Insurance Co.
June 8

(letter of notification) 4o,000 shares of common
(par $1) to be offered to holders of life insurance
policies. Price—$4 per share. Proceeds—For capital and
surplus. Office—809 W. Main St., Mesa, Ariz. Under¬

stock

writer—None,

Participating Annuity Life Insurance Co.
$2,000,000 of variable annuity policies. Pro¬
For investment.
Office
Hathcock Building,
—

A" Public Service Co. of New Hampshire
June 24 filed 396,000 shares of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—To be
applied to reduction of short-term bank loans.
Under¬
writer—Kidder, Peabody & Co., New York.

Statement effective April 14.

—

Fayetteville, Ark.

Statement effective June 10,

Underwriter—None.

June 4 filed
ceeds

Undewriter—None.

be
for subscription by holders of stock purchase
rights acquired in connection With life insurance policies
issued by Dependable Life Insurance Co. and to certain
agents and brokers of Producers Fire & Casualty Co.
Price—$5 per share.
Proceeds—For working capital.

Fund, Inc.
Jan. 2 filed 300,000 shares of capital stock. Price—Mini¬
mum purchase of shares is $2,500.
Proceeds—For invest¬
ment. Office—404 North Roxbury Drive, Beverly Hill*Calif. Underwriter—Paramount Mutual Fund Manage¬

held; rights to expire on Aug. 11, 1959. Proceeds
—-For construction program expenditures, including the
payment of any then existing bank loans (estimated at
$14,000,000). Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Lehman Brothers and
Riter & Co. (jointly); The First Boston Corp., Blyth &
Co., Inc., and Kuhn, Loeb & Co. (jointly); White,"Weld
& Co. and Glore, Forgan & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Smith, Inc. Bids—Expected to be re¬
ceived up to 10 a.m. (CDT) on July 22 at 231 So. LaSalle
St., Chicago 4; 111.
/-/.'v./V; 1/r;

America, Inc.

offered

51,847

Paramount Mutual

15 shares

Pressed Metals of

April 17 filed 90,000 outstanding shares of common stock.
Proceeds—To selling stockholders. Office—Port Huron,

Producers Fire & Casualty Co., Mesa, Ariz.
March 31 filed 400,000 shares of common stock to

outstanding shares of common
stock (par $1) being offered "only to stockholders and
directors o£ The Refinite Corp. and will not be offered
to the general public."
Price—$3 per share. Proceeds—
To selling stockholders, The Refinite Corp. Office—8400
Santa Monica Boulevard, Los Angeles, Calif. Underwrit¬
er—None. Statement effective May 15.

ment Co.

Underwriter—None.

^ Public Service Co. of New Hampshire
$8,000,000 of first mortgage bonds, series K,

Peckman Plan Fund, inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1)
Price—At market.
Proceeds—For investment.
Under¬

June 24 filed

writer—Investors Investments Corp.,

term

due 1989. Proceeds—To be

applied to reduction of short-

Underwriter

To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &

Pasadena, Calif.

Pennsylvania Electric Co. (8/4)
June 15 filed $15,000,000 of first mortgage bonds due
Aug. 1, 1989. Proceeds — Will be applied to repayment

bank loans.

—

Co.

Inc.; Blyth & Co., Inc. and Kidder, Peabody & Co.
(jointly); The First Boston Corp. and White, Weld &
(jointly); Glore, Forgan & Co.; Salomon Bros. &
Hutzler.
/ V,'• ;•., A-

Co.

of short-term bank loans incurred for construction pur¬

Northrop Corp. (7/7)
June 15 filed $ij,o00,UJu of convertible subordinated de¬
bentures due July 1, 1979.
Price —To be .supplied by
amendment.
Proceeds—For working capital and other

construction expenditures. Under¬
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Equitable Secu¬
rities Corp.; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co., Merrill Lynch, Pierce, Fenner &
Smith, Inc. and White, Weld & Co. (jointly); The First
Boston Corp.; Harriman Ripley & Co. Inc. and Blyth &
Co., Inc. (jointly). Bids—Expected to be received up to
11 a.m. (EDT) on Aug. 4 at the offices of General Public
Utilities Corp., 67 Broad St., New York 4, N. Y.

Office —9744 Wilshire Boulevard,
.Beverly Hills, Calif. Underwriters—William R. Staats
•& Co., Los Angeles,-Calif.; and Blyth & Co., Inc., New
York.
'■
V.
^

Dak..:.

for

1959

Queenstown Gardens, Inc.
June 5 filed 140 units, each unit consisting of 700 shares

writer—To be determined by

corporate purposes.,;

Northwest Defense

and

poses,

Minerals, inc.,. Keystone,
V-::.

of class B

T:p><-AV-Ac';

Office Buildings of America, Inc.
April, 6 filed 91,809 shares of class A stock (par $1) and
10,201 shares o£> class B common stock (par $1) to be
offered in units of nine class A

share.

Price—$100

per

unit.

shares and one class B

Proceeds—To be available

for investment in real estate syndicates and other real
estate. Office—9 Clinton St., Newark, N.. J.
—None.

Underwriter

filed

874,422 shares of common capital stock
(without par value). The company has agreed with the
holders of the outstanding shares of Aurora Gasoline Co.
to exchange 25 shares of Ohio Oil common for each
share of preferred stock of Aurora; 5.78438 shares of
Ohio

Oil

common

for

each

common

stock

Aurora; and 5.78438 shares of Ohio Oil common for each
share

of class A

common

stock

of Aurora.

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock (par 35
cents.
Price—$2 per share. Proceeds—To retire bank
loans and for investment purposes. Office—513 Interna¬
tional Trade Mart, New Orleans, La.
Underwriter —
Assets Investment Co., Inc., New Orleans, La.
•

Oklahoma Cement Co.

Philip Morris Inc. (6/25)
$40,000,000 of 20-year sinking fund deben¬
tures due 1979. Price — To be supplied by amendment.
Proceeds — To reduce short-term bank loans.
Under¬

Arnold,

1, 1974, and 360,000 shares of common stock (par 25
cents) to be offered in units each consisting of $100 of

June

debentures

and

common

stock.

Price—To

be supplied by amendment:

Proceeds — For expansion,
general corporate purposes, and the balance for working
capital. Office—Beacon Bldg., Tulsa, Okla. Underwriter
'—Laird & Co. Corp., Wilmington, Del.
L
Oreclone Concentrating Corp., Virginia, Minn.
May 20 filed 200,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds —For repayment
of outstanding obligations and for working capital. Un¬
derwriter—Investment Bankers of America, Inc., Wash¬
ington, D. C.
;
/"V
Ozark Air

Lines, Inc. (7/6)
•
May. 20 filed 132,944 shares of general

Circle,

June

supplied

amendment.

Proceeds—For

Raytheon Manufacturing Co.
May 1 filed 350,602 shares of common stock (par $5) arid
100,000 shares of 5V2% series (cumulative), serial pre¬
ferred stock (par $50).
These shares were or may be
issued as a result of the merger, of Machlett Labora¬
tories, Inc., into Raytheon Co.
ufacturing Co.).

Reading Tube Corp.
(7/16)
15 filed $5,000,000 of 15-year

purchase additional shares of common stock, to be of¬
consisting of a $1,000 temporary debenture
with attached warrants in an amount to be determined
at the time of offering. Price—To be supplied by amend¬
ment. Proceeds—To repay in full long-term bank loans,
and the balance will be added to the general funds of the
company and will be available to meet increased cash
requirements resulting from increased investment in in¬
ventories and for additions and improvements to prop¬
erties and facilities.
Underwriters—Emanuel, Deetjen
& Co. and Bache & Co., both of New York.

Rights to expire on June 30,, 1959. Price — $3.50 per
Proceeds—For working capital. Address—Smith

Underwriter—

None.

Cable Corp.

(7/7)

of common stock (par $5) to
be offered for subscription by holders of outstanding
stock at the rate of one new share for each five shares
filed 40,000 shares

Reeves

July 7; rights to expire on or about July 27.
be supplied by amendment.
Proceeds—To

outstanding bank loans, for construction expen¬

Underwriter—
Statement expected to

ditures and for other corporate purposes.
Putnam
become

Co., Hartford, Conn.
effective July 7.
&

public offering is planned.
•
.

•

Precon Electronics

April 6
cents).
capital;
opment

Corp.

(6/29-30)

filed 175,000 shares of common stock (par 75
Price — $5 per share: Proceeds — For working
to reimburse the predecessor for certain devel¬
expenses; for inventories and work in process;

Soundcraft Corp., Danbury, Conn.

April 30 filed 22,000 shares of common stock (par five
cents) to be sold to Lewis Cowan Merrill upon exercise
of option. Price—$3 per share. Proceeds—To Hazard E.
Reeves, the selling stockholder. Underwriter—None. No

Price—To
repay

sinking fund de¬

1974, with attached warrants to

fered in units

share.

Wire

(formerly Raytheon Man¬

June

Inc., New York,

Piedmont Aviation, Inc.

Plastic

Proceeds—For work¬

basis.

May 6 (letter of notification) 81,714 shares of common
stock (par $1) being offered to stockholders at the rate
of 1/14 of a share for each share held as of May 22, 1959.

held

Price—At par.

bentures, due July 15,

June 5

plan approved by the

ing capital and general corporate purposes. Underwrite!
—Rassco Israel Corp., New York, on a "best effort!"

Price—$1.50 per share. Proceeds—
installation of machinery; electronic and

Reynolds Airport, Winston-Salem, N. C.

Financial

of $500 and $1,000.

cents).

Woodhill,

with

Corp.
15-year 6% series A sinking
fund debentures due 1973, to be offered in denomination®

optical test equipment; purchase and installation of fix¬
tures and for working capital.
Office — c/o McNabb,
Sommerfield & James, 40 Exchange Place, New York,
H.

options in accordance
Rassco

(letter of notification) 200,000 shares of common

Underwriter—M.

Underwriter—

June 26 filed $1,000,000 of

(6/24)

stockholders on May 12, 1959.

Cer¬

^ Phototronics Corp., College Point, L. I., N. Y.

A Rapid-American Corp.
23 filed 66,311 shares of common stock (par $1),,
to officers
or
employees upon the exercise

May 27.

stock (par 10
Purchase and

Rumson,
N. Y.

issuable

Phillips-Van Heusen Corp.
April 21 filed 69,210 shares of common stock, to be of¬
fered in exchange for common stock of Kennedy's, Inc.,
in the ratio of IV2 shares of Phillips-Van Heusen stock
for one share of Kennedy's stock.
Statement effective

common stock
"(par $1) to be offered to holders of class A and class B
common stock
(not including class B common held by
voting trustees) and holders of voting trust certificates
for class B common stock, on the basis of one new share
of general common stock for each nine shares of class A
common, class B common (not including class B shares
held by voting trustees), or voting trust certificates for
class B common. Record date on or about July 6; rights
expire on or about July 15. Unsubscribed shares may be
offered July 16.
Price—$4.75 per share.
Proceeds—For
purchase of additional flight equipment.
Address—P. O.
Box 6007, Lambert Field, St. Louis, Mo. Underwriters—
Newhard, Cook & Co. and Yates, Heitner & Woods, both
of St. Louis, Mo.
^

Wilson

; Philippine Oil Development Co., Inc.
April 10 filed 221,883,614 shares of capital stock, to be
offered for subscription by holders of outstanding stock
at the rate of one new share for each two shares held.
be

ore

Sano & Co., New York,

Price—To

.....

290,000 shares of common
Proceeds—To prove
and for road and camp construction. Office—At
Suite 322, 200 Bay St., Toronto, Ont., Canada, and c/o T.
up

Glore, Forgan & Co.,

working capitaL Office—Soriano Building, Plaza
vantes, Manila (P. I.). Underwriter—None.

•.

stock (par $1). Price—$1 per share.

both of New York.

June 9

(7/6)

May 21 filed $3,600,000 of subordinated debentures due

•

-•

Brothers and

Raindor Gold Mines, Ltd.
Jan. 28 (letter of notification)

•

^ Ohio Oil Co.
June

Colo.

June 2 filed

Lehman

(par $1).

purchaser of stock is entitled to receive one stock
purchase warrant for each five shares of stock acquired.
The warrants will entitle the holder to acquire one share
of common for each fiye shares of stock acquired. Price
—$2 per sh^re. Proceeds—For, working capital. Office—
-2000 W. Colfax Ave.,*Denver, Colo.
Underwriters —
Amos C. Sudler & Co., and Purvis & Co.; both of Denver,

(par 16 cents). This covers the transfer of certain shares
pursuant to option agreements. Price — At over-the*prices. Underwriter—None.

—

Underwriter—None.

Radar

Each

counter market

writers

Radinsky Investment Co.
1 filed 100,000 shares of common stock

i Permachem Corp., New York
/
March 31 filed 2,041,331 shares of class A common stock
(par 10 cents) and 1,917 shares of class B common stock

•

.Hialeah,-.Fla..r •'?.

known

June

„

—

mingo Plaza.

ment

Design Corp., Syracuse, N. Y. (7/13-17) \i*
May 26 filed 120,000 shares of common stock ($1 par).
Price—$3 per share. Proceeds — To liquidate notes and
mortgages, and for new equipment and working capita).
Underwriter—Charles Plohn & Co., New York.

Underwriter—None.

Sept. .4 (letter of
J 10Q,do4 "shares ofjcommoi
(par $1).;'Price$3 per share/ proceeds — Foi
.working capital ; Office-^li, Flaming^ Plaza, Hialeah
/Fla.
Underwriter
Henry & Associates, Inc., 11 Fla¬

common

Proceeds—To acquire a

•

Perfecting Service Co.
May 4 (letter of notification) 300,000/shares of common
(par 10 cents):., Price—$L per share. Proceeds—> •Feb. 26 (letter of notification) 28,250 shares of common
stock to be offered for subscription by stockholders on
For exploring and recovering strategic metals and pro¬
a pro rata basis.
Rights expire in 15 days. Price—At par
ducing same: Underwriter—Caldwell Co., 26 Broadway,
New York, N. * Y. /AuAAAAy,: /,>,<
($10 per share). Proceeds—For accounts receivable and
' v.'>
inventories. Office—332 Atando Ave., Charlotte, N. C.

t .'v Oak. Ridge, Inc^ • :'a

stock.
Price—$5,000 per
1061 apartment develop:Queenstown Apartments in Prince

non-voting

unit.'

Georges County, Md.

stock

'itock

41st

Paddock of California
March

other general corporate purposes.
Office—120 32.
St., New York, N. Y. Underwriters—Charles Plohn
& Co. and Netherlands Securities Co., inc., both of New
York, N. Y.
and

short-term notes in ratio

of 7%

and

($50 per share). Proceeds—To pay bank loans and for
general corporate purposes.
Underwriters—A. M. Law

share of New York Shipbuilding com¬

North American Acceptance

April 29

Stock, to be
stock of Higgins, Inc.,
common

each 24 shares of Higgins common.. The

will expire on
'

of
.

Paco

Toronto, Canada. Underwriter

at the rate of
mon

•

May 11

(2879)

Reheis Co., Inc.

June

5 filed

chemicals

class A stock

$5 per share. Proceeds — To selling
Business — Manufactures and sells fine
bulk primarily to ethical pharmaceutical

(par $1). Price
stockholders.

(7/6-10)

87,000 outstanding shares of
—

Continued

on page

(2880)

The Commercial and Financial Chronicle

Continued

from

page

manufacturers, and cosmetic manufacturers.
er—Aetna Securities Corp., New York.
Research

Underwri-

tion by common stockholders
At par. Proceeds—For

Investing Fund of America, Inc.

Feb. 24 filed 200,000 shares of capital stack. Price—At
market. Proceeds—For investment
Office—Englewood,

(ST. J.

Underwriter—First Mutual Securities of America,

Inc.
Richwell

Petroleum

•

Silver

the

account

the

company,

and

1,350,000

account

derwriter—Maltz, Greenwald & Co., New York.

its

certain

offer

selling stockholders.
The company
the 1,174,716 shares for subscription

shareholders

the

rate

one

new

for

each three shares held

account

selling stockholders.

Price—To

Ritter

(P. J.)

Co., Bridgeton, N. J.
4,827 shares of preferred stock, non-cumu¬
lative, voting, (par $100) and 60,018 shares of common
f>tock (no par) to be offered to the holders of
preferred
end

stock

common

Brooks

of one share of Ritter

Foods, Inc., at the rate

preferred stock for each share of

preferred stock of Brooks and two shares
Stock

Brooks.

Ritter
The

for

each

common

stock

exchange offer is being made by Ritter in

accordance with its agreement with Brooks and certain
of its stockholders who own an
aggregate of

18,805
Fhnres of its outstanding common
stock, or approxi¬
mately 62.5% of such stock, and who have agreed to
accept the exchange offer upon effectiveness of the reg¬
istration statement.

Roosevelt-Consolidated Building Associates
May 4 filed $5,580,000 of Participations in
Partnership

Skaggs Leasing Corp.

notification) 240,000 shares of common
(par $1). Price—$1.25 per share. Proceeds—For
general corporate purposes. Office—307 Vz W. 19th
Street,
stock

Cheyenne, Wyo. Underwriter—Harrison
Co., Salt Lake City, Utah.
Smith

(H. C.)

•

Royal Dutch Petroleum Co./Shell
Transport &
'/
Trading Co.
JVTay'27 Royal Dutch filed 794,203 shares
(nominal
value of 20 Netherlands Guilders

—

Soundscriber Corp.
May 13 filed 126,254 shares of
fered

for

subscription

common

stoc.*»

port filed 1,191,304 ordinary shares

curred

and

troduction of

According to the prospectus, an offer has been made
by Royal Dutch and Shell
Transport to Canadian Eagle
Oil Company
Limited, for the whole of its assets and
business. Pursuant to the
offer, there would be allotted
to Canadian
Eagle, for distribution in kind to its share¬
3,971,012 fully paid shares of Royal Dutch and

holders,

of Shell

Transport.
Bataafse Petroleum
Maatschappij, N.V., a company of
the Royal Dutch/Shell
group of companies, which owns
ebout 21% of the issued share
capital of Canadian Eagle,
will waive its
right to participate in such distribution.
Canadian Eagle shareholders
owning the remaining 23,€26,072 ordinary shares of Canadian
Eagle will there¬
fore receive two
Royal Dutch shares and three Shell
Transport ordinary shares In
respect of every 12 shares
of Canadian
Eagle held. The offer is to be voted
upon
by Canadian Eagle shareholders at a
meeting to be held
July 21, 1959. After the shares of
Royal Dutch and Shell
Transport have been distributed to
Canadian Eagle
shareholders, Canadian Eagle is to be dissolved. State¬
ment effective June 17.

Schjeldahl

(G. T.)

Co.

March 23 filed
42,500 shares of common stock
(par $1)
being offered first to present
stockholders at the rate
of one new
share for each eight shares

10,

held

1959; rights to expire

June

of June

30.

Price—$10 per
Proceeds—For increased plant
facilities, for purequipment, working capital and other
corporate

snare.

Chase of

purposes.

Office—202

t*eiwr^er

Minn'

—

South

Division

St.,

of¬

incurred

new

line

in connection

with

the

in¬

office

dictating equipment;
interest; payment of a
on

notes pay¬

able; and for general corporate purposes. Office—8 MidAvenue, North Haven, Conn. Underwriter—

None.

Sports

Northfield,

Craig-Hallum, Inc., Minneapolis,

expand

two

the number of
•nd

present establishments by increasing
alley beds by eight at Yorktown Heights

by six at Wilton Manor Lanes, Fort
Lauderdale;
1300,000 for deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. UnderwriterNone.

Sports Arenas
(Delaware)
Inc.
Nov. 18 filed 461,950 shares of common stock
(par one
Price—At the market (but in no event less than
16 per share). Proceeds—To
selling stockholders. Office
-33 Great Neck
Rd., Great Neck, N. Y. Underwriter—
None.

general corporate purposes; working capital
specialized, equipment. Office—108 Meadow

City, Town of Hempstead, New
Adams & Peck, New
York, N. Y.

and

for

St., Garden

York.

Underwriter—

it Stelling Development Corp.
June 3 (letter of
notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mortgages, land,
paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa
2, Fla. Under¬
writer—Stanford Corp.,
Washington, D. C.

Stuart Hall Co.,
June 8 (letter of

Kansas City, Mo.
notification) 23,169 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—For general corporate
purposes. Underwriter
—White &
Co., St. Louis, Mo.
Suffolk Gas Corp.
May 8 (letter of notification) 6,000 shares of common
stock (par $2.50) to be offered for
subscription by stock¬

£100 principal

Sum-ay Mid-Continent Oil Co.
May 19 filed 525,000 shares of common

JPrice—To
retire

supplied

outstanding notes

amendment.

and for

poses,

Proceeds—To

general corporate pur¬

including additional working capital.
—White, Weld & Co., New York.

Underwriter

Offering

about middle of
July.

expected

^Selection Sales Corp.

June

(letter of

notification) 3,000 shares of 6% pretferred stock (par
$10). Price—$15 per share. Proceeds—
For working
capital.

Office—2323 E. 67th
St., Cleveland

4, Ohio. Underwriter—None.
Service Life Insurance Co.
Sept. 26 (letter of
etock

£0 to

notification) 3,567 shares of common
Price—$18.75 per share Proceeds—To
a selling stockholder. Office—400 W. Vickerv Blvd
(par $1).

Worth, Tex. Underwriter—Kay &
Co., Inc., Houi«

Dec*

ln American Industry,

12 filed

S? ^re
L

Washington 7,
Fund

stock.

Office

—

Price

1033-30th

D. C. Investment Advisor—InCorp. Former Name—

Management

fSnareg in America, Inc.

Inc.

common

T?rCe^s~For investment.

;Tr

vestment

50,000 shares of

Underwriters—Charles Plohn

stock

fered in

■

be of¬

•

exchange for common stock of Suntide
Refining
Co. in the ratio of one share
of Sunray for each three
shares of Suntide. The offer
is conditional upon the de¬
posit of sufficient shares of Suntide so that
Sunray wV.*
own
at least 90% of the
outstanding Suntide shares.

Underwriter—None,

March 25 filed
250,000 shares of common stock. Price—
At par (19,800 Israeli
pounds—equivalent to $11 per
«hare in U. S.
funds), payable up to 90% in State of
Israel Independence Issue and
Development Issue Bonds,
and the balance in cash.
Proceeds—For

expansion pro¬
Tel Aviv, Israel.

gram.
Office — 79 Ben Yehuda St.,
Underwriter—American Israel Basic Economy
Co., New
York, N. Y.

Superior Window Co. (7/1)
May 15 filed 50,000 shares of 70-cent cumulative
con¬
vertible preferred stock
(par $8) and 125,000 shares of
class A common stock (par 10
cents). Price—For pre¬
ferred stock, $10 per
share; and for common stock, $4
per share. Proceeds—To purchase the
assets of Superior
Trucking Co.; for repayment of notes; and for general
r
■

■

Co.

ancL Nether¬

York.^YvY

filed

Price—$10,000
purchase

$630,000 of limited partnership interests.
per partnership interest. Proceeds —For
long term lease covering a garden type

apartment located in the Borough of Bergenfield, County
Bergen, N. J. Office—350 Broadway, New York, N. Y.

Technical Operations Inc.
May 29 filed 75,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—For construction
program, for investment in subsidiaries, for working
capital and other corporate purposes. Office — South
Ave., Burlington, Mass. Underwriter—Bear, Stearns &
Co., New York.
■

Technology, Inc.
May 15 filed 325,000 shares of common stock (par 10
cents).
Price—$4 per share.
Proceeds—To''pay off 111
full the
subscription of Microwave Electronic Tube
Co., Inc. stock, represented by notes, to pay for im¬
provements

upon the plant leased to Microwave, and
working capital.
Office—1500 Massachusetts Ave¬
nue, N. W., Washington, D. C.
Underwriter — E. L,

Wolf
•

Associates, Inc., Washington, District of Columbia.

Telemeter

Magnetics, Inc. (6/30)
May 26 filed 150,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—To be applied to the reduction of short-term bank
loans

incurred

for

working capital purposes as a con¬
expanding business of the company.
is engaged principally in de¬
sign, development, manufacture and sale of digital data
handling equipment and components for the computer
and data processing industry.
Underwriters—Lehman
Brothers; Ilallgarten & Co. and Hemphill, Noyes & Co.,
of

sequence

the

Business—The

all

of New

company

York.

•

Templeton, Damroth Corp., New York (6/29)
June 5 (letter of notification) 30,000 shares of common
stock (par 10 cents).
Price—$4.50 per share.. Proceeds
investment in various

Hecker & Co..

companies.

Underwriter—

Philadelphia, Pa.

Ten Keys, Inc., Providence, R. I.
April 28 filed 973,000 shares of capital stock (par $1).
Price—$5.40 per share. Proceeds—For investment. Office
—512 Hospital Trust
Bldg., Providence, R. I. Distributor
—E. R. Davenport & Co.,
Providence, R. I.
Terminal Tower Co., Cleveland, Ohio
(6/29)
May 29 filed $3,300,000 of 6% sinking fund debentures
due July 1, 1969, with common stock purchase warrants
for the purchase of the
company's common stock at the
price of $30 per share and at the rate of 10 shares for
each

$1,000 of debentures. Price

amount.

Tower
Reid &

Proceeds

—

For

100% of principal
acquisition of the Terminal
—

Building, Cleveland, Ohio. Underwriter—Fulton
Co., Cleveland, Ohio.

•
Tip Top Products Co.
/
-Y Y "/V
May 29 filed $850,000 of 6% first mortgage sinking fund
bonds, series A (with warrants for 17,000 shares of class
•

common

stock), and 100,000 shares of class A common
For stock, $10 per
share; for bonds, at
principal amount. Proceeds—To retire the pres¬
ent mortgage debt of the
company, to pay off shortterm bank borrowings, and for
working capital. Office—
1515 Cuming St.,
Omaha, Neb. Underwriters
J. Cliff
Rahel & Co.,
Omaha, Neb.; and The First Trust Co. 6f
Lincoln, Neb.
Offering expected in early part of July*
stock. Price

—

100% of

—

it Tollycraft Corp., Kelso, Wash.
June 9 (leter of
notification) 2,200 shares of common
stock (par $100). Price—$130 per share. Proceeds—For
general corporate purposes.
&

Underwriter—Zilka, Smither

Co., Inc., Portland, Ore.
Transcon

Petroleum & Development

Mangum, Okla.

Super-Sol Ltd.

„

Inc., both of New

Teagen Co.
June

—For

it Standard Aircraft Equipment Co., Inc.
June 12 (letter of
notification) 75,000 shares of common
stock (par 50 cents).
Price—$4 per share. Proceeds—For

holders; unsubscribed shares to public. Price—To stock¬
holders, $6.75 per share. Office—151 N. Main
Street,
Suffolk, Va. Underwriter—Strader &
Co., Inc., Lynch¬
burg, Va.:
/;• :
"• •; •
"
Y

rate
of
each 23 shares.

cent).

it Seehurg Corp.
June 19 filed
$5,135,000 of 20-year convertible subordi¬
nated
debentures, due Aug. 1, 1979, to be offered for
subscription by common stockholders at
the

amount of debentures for

for

Arenas

(Delaware) Inc.
Nov. 18 filed $2,000,000 of 6%
10-year convertible de¬
bentures
(subordinated), due Jan. 1, 1969. Price—To be
lupplied by amendment.
Proceeds—$750,000 to pay AMF

to
par

(£ nominal value).

6,956,518 fully paid ordinary shares

stockholders at the
one new share for each three
shares held. Price
*-+$■14 per share. Proceeds—To be applied for costs in¬
common

rate of

Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for other
installations, fixtures and equipment; $85,000

each), and Shell Trans¬

Tape Cable Electronics Co., Inc. (7/6-10) YY--> /
June 8 filed 110,000 shares of common stock, (par one
cent). Price—$3.75 per share. Proceeds—For-the pur¬
chase
and
construction of necessary
maeMuery- and
equipment, the promotion and sale of Tape-Gable,; and
for working capital. Office—790 Linden Ave., Rochester,

Oil Tool Co.

dletown

jj i'

•

—

—None.

• Rowe
Furniture Corp., Salem, Va. (7/8)
June 9 filed 165,000
outstanding shares of common stock.
IPriee—To be supplied by amendment.
Proceeds—To sell¬
ing stockholders. Underwriter—Francis I. duPont &
Co.,
Xynchburg, Va., and New York.

Brothers

May 20 filed 100,000 shares of capital stock
(no par).
To be supplied by amendment.
Proceeds
For
research and development of new
products; to increase
inventories; and for the acquisition of new production
machinery and tools. Office
14930 South San Pedro
Blvd., Compton, Calif. Underwriter—William R. Staats
& Co., Los
Angeles, Calif.
Price

payment of installment notes with
bank indebtedness; payment and
interest

Statement effective June

Mav

cents.

lands Securities Co.,

Interests, to be offered for sale in units. Price—$10,000
unit.
Proceeds—For general corporate
purposes.
Office—60 East 42nd Street, New York.
Underwriter
per

Tang Industries, Inc. (7/6-10)
25 filed 110,000 shares of common stock (par 10
Price—$3 per share. Proceeds—To purchase ma¬
chinery and equipment; for research and development;
for certain expenses and lor working capital.
Office—
49 Jones Road, Waltham, Mass.
Underwriter— David
Barnes & Co., Inc., New York.

supplied

Sip'n Snack Shoppes, Inc.,
Philadelphia, Pa.
comomn stock (par 10
cents). Price—$2 per share. Proceeds—To pay loans and
for new equipment.
Underwriter—Sano & Co., New

June 4 (letter of

June 18 filed

New York.

•

supplied by amendment. Proceeds—To pay off demand
note, to pay other indebtedness, and the balance if any

Securities Ltd., Vancouver, Canada.

•

shares for
be

March 31 filed 200,000 shares of

York. Statement effective June 19.

Underwriter—Pacific

....Y.'"
,

Proceeds—For working capital. Office—
Central Ave. and Mechanic
St., Silver Creek, N. Y. Un¬

(with an oversubscription privi¬
lege). The subscription period will be for 30 days fol¬
lowing issuance of subscription rights. Price—To be

will be added to working capital.

Taft

Broadcasting Co, (7/6-8)
<
June 5 filed 483,332 shares of common stock (par $1).
Price
To be supplied,
by amendment. Proceeds —
To selling stockholders. Office—800 Broadway^ Cincin¬
nati, Ohio. Underwriter—Harriman Ripley & Co. Inc.,

filed

by amendment.

proposes

•

Creek

Thursday, June 25, 1959

—

Ltd., Alberta, Canada
26, 1958 filed 1,998,716 shares of common stock
(par $1). Of this stock, 1,174,716 shares are to be sold
on
behalf of the company and 824,000 shares for the
.

and New York.

Precision Corp.
(7/6-13)
1,550,000 shares of common stock (par
cents), of which 200,000 shares are to be offered for

March

purposes. Office—625 E. 10th Ave., Hialeah,
Underwriter—Cruttenden, Podesta & Co., Chicago

Fla.

basis. Price—

pro rata

corporate

working capital. Office — 3175
North Sheridan Rd.,
Chicago 14, 111. Underwriter—None

June

•

Sheridan-Belmont Hotel Co.
Aug. 19 (letter of notification) $250,000 of 6% convertibl*
debentures due Sept. 15, 1963 to be offered for
subscrip¬

•

■

Corp.*

March 20

(letter of notification) 300,000 shares of com¬
mon
stock. Price—At par ($1 per
sriareL Proceeds—
For development of oil
properties. Underwriter—First
Investment

Planning Co., Washington,. D. C.

Trans-Sonics, Inc., Lexington, Mass.
June

(7/13-17)]

filed

90,000 shares of common stock (par $1).
supplied by amendment.
Proceeds
To
selling stockholders. Business—Manufacture- and sale of
precision transducers. Underwriter—Kidder,
Price

—

To be

—

Peabody &

Co., Inc., New York.

■

Treasure Hunters, Inc.
June 4 filed 1,900,000 shares of common stock
(par one
cent). Price—$1 per share. Proceeds—For salvage
op¬

erations.-

Office—1500

Massachusetts

Washington, D. C. Underwriter—None.

Avenue,

W.f

Volume

Number 5858

189

The Commercial and

Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock
Price

$10.75

—

Office—South
writer—To be

per

investment.

Main

share.
Proceeds — For
Street, Greenville, S.
supplied by amendment.

Variable Annuity Life Insurance Co. of America
April 21 filed $4,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
conw
cts.
Proceeds—For investment, etc. Office—1832

(par $1).
Under¬

To construct

principal amount.

''.J:'/.'.,.4

■

withdrawn
o

Heat & Power Co.

•

$0,100,000 of 30-year first

Street, New York 15, N. Y.

7:'■;

•

Corp.
Nov. 26 filed 708,750 outstanding shares of common stock.
Price—At market. Proceeds — To selling stockholder*.
United States

Glass & Chemical

Office—Tiffin, Ohio. Underwriter—None.
United States Plywood Corp.

(7/15)

of 20-year

tures due

Co., New York.

Chemicals, Inc. (7/16)
June 11 filed 75,930 shares of common stock (par 50
cents), of which 55,930 shares are to be offered for sub¬
scription by stockholders at the rate of one new share
for each cix shares held of record June 30, 3959.
The re¬
maining 20,000 shares are to be sold by certain selling
stockholders.
Price — To be supplied by amendment.
Proceeds—To be added to the general funds of the
company and used for corporate purposes, including a
$250,000 expenditure for the purchase and installation of
U. S. f*olymer»c

•

(7/6-10)

Mountain Brook, Ala.
of which

shares represent the balance of 250,000 shares
issuable Upon the exercise of options granted key em¬
ployees under the company's Employees Stock Option
Plan. The remaining 110,000 shares are to be issued to
stockholders of Greystone Granite Quarries, Inc., and
Pioneer Quarries Co., both North Carolina'corporations,
and to certain other parties in exchange for all the out¬
standing capital stock of Greystone and Pioneer and
certain real and personal properties operated under lease
by Pioneer.

writer—None.

Prospective Offerings
Alabama Gas Corp.

May 21 it was announced that the company plans to
issue $4,000,000 of first mortgage bonds. Proceeds—To

^••M^'f^^uqtion, costs. Underwriter—To be determined

Shreveport, La.
April 28 filed 157,250 shares of class B common stock
to be sold privately to retail druggists through James D.
Wade, Jr., company's principal officer and stockholder,
who will receive a commission of $1.50 per share. Price
Wade Drug Corp.,

mentation; for initial contracts; and purchase of
tional
companies.
Underwriter—None.

Washington Land Developers, Inc.
3 filed 100,000 shares of class A common

June

addi¬

stock.

by competitive bidding.
art

—

per

tember.

Alabama

May 21 it

"L77:'\'?l77

Gas

Corp.
V/
>
announced that the company contemplates

was

the issuance of 30,000 shares of preferred stock
(par
$100). Proceeds — To pay construction costs. Under¬
writers—May be White, Weld & Co., New York; and
Sterne, Agee & Leach, Birmingham, Ala.
OfferingExpected late August or early September.

share.

writer—None.

Halsey, Stu¬

& Co. (jointly);
Salomon Bros. & Hutzler and Equitable Securities Corp.
(jointly). Offering—Expected late August or early Sep¬

Proceeds — For working capital.
Office—1507 M Street, N. W. Washington, D. C. Under¬

Price

Probable bidders:

&;Co. Inc.; White, Weld & Co., Stone & Webster

Securities Corp. and Kidder, Peabody

it Albertson's Inc.
June 23 it was reported that the company contemplates
some additional financing, probably in the form of com¬

•.

• Wellington Electronics,'Incr (6/29-7/3)
May 6 filed 240,000 shares of common stock (par 75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank note; to complete the automation of the etched
foil production plant at Englewood, N. J.; for manu¬
facture of machines to be leased to capacitor manufac¬

Business—Food stores concern.

stock.

mon

—J. A. Hogle &

Underwriter

Co., Salt Lake City, Utah.
Expected sometime this fall.

Offering-

Bank of Commerce, Washington, D. C.
of the Bank approved the sale

Feb. 26 stockholders

2,000 shares of capital stock (par $100) to holders of
record May 29, 1959, on the basis of one new share for
each three shares held; rights to expire on June 30.
Price—$150 per share.
Proceeds—To increase capital
and surplus.

turers; and for working capital. Office — Englewood,
N. J. Underwriter—Charles Plohn & Co., New York.
Wells Industries Corp.

May 14 (letter of notification) 66,600 shares of common
stock (par 50 cents) to be offered for subscription by
stockholders on the basis of one new share for each five
shares held. Price—$3 per share. Proceeds—To develop

Bank of Montreal

Santa Ana (Calif.) plant. Un¬
derwriter—Dominick & Dominick, New York. Offering
expected about July 16.

Hollywood, Calif. Underwriter—None.
June 3

announced Bank is offering to its stock¬
17, 1959 the right to subscribe
1959 for 675,000 additional shares
of capital stock on the basis of one new share for each
eight shares held. Price—$32 per share, payable in 10
monthly installments from July 10, 1959 to April 8,
1960.
Subscription Agent—Royal Trust Co., Montreal,

Inc.
Jan. 28 filed 4,500,000 shares of class A common stock
(par 50 cents).
Price—$2 per share. Proceeds—For
development and construction of a "Western Village"

stock

Canada.

Wash. Underwriter—None.

June

new

processing equipment,

consisting principally of two

additional treaters for its

United Tourist Enterprises,

Estes Hotel and Con¬
constructed in the immediate vicinity

West End

May 26

Portland, Ora.
April 30,1957 filed 1,250,000 shares of common stock(pai
16 cents).
Price—To be supplied by amendment (ex¬
acted to be $1 per share). Proceeds—For exploration
»purposes.
Underwriter—To be named by amendment,
Graham Albert Griswold of Portland, Ore., is Pre»Utah Minerals Co.

April 11
mon

(letter of notification) 900,000 shares of com¬
cents per share). Proceed*

stock. Price—At par (10

—For

Utah.

•

California

June

1 filed

plates

being, of¬

that date. Rights expire on

Office—305 Main St., Park City,
Underwriter—Walter Sondrup & Co., Salt Lak*

mining expenses.

July 15. Price—$17.50

Utah Oil Co. of New

York, Inc.

May 6 (letter of notification) 300,000 shares of capital
■tock. Price — At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank
& Co.. Inc., Rochester, N. Y.

P. Hunt

Utility Appliance Corp., Los Angeles, Calif.
.April 9 (letter of notification) 50,000 shares of common
stock (par $1).
Price—$5.75 per share. Proceeds—To

Office—4851 South Alameda Street,
Los Angeles 58, Calif. Underwriter — Dempsey-Tegeler
& Co., Los Angeles, Calif.

"'selling stockholders.

* Van Norman Industries, Inc.
"June 2 (letter of notification)
a

maximum of 26,240
shares of common stock (par $2.50) to be offered to em¬
ployees under the Employee Stock Purchase Plan. Price
—At the market. Proceeds—To purchase stock. Office—
Church
St., New York 6. N. Y. Underwriter—None.
Digitized6for
FRASER

Road, Los Gatos, Calif. Underwriter

—None.

ta &

Western Wood Fiber Co.

& Southwest Corp.
May 19 it was announced that the company in view of
generally favorable market conditions, is now consider¬
ing the sale of 350,000 or 400,000 shares of common
stock.
Offering—Expected sometime this Fall. Under¬
writers
To
be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc. and Harriman Rip¬

stock (par $10)
(par $25). Price —
and equipment of
company's plant and for working capital. Office—300
Montgomery St., San Francisco, Calif. Underwriter—

—

None.

White-Rodgers Co.

(7/1)

convertible subordinated dePrice — To be supplied by
pay for part of the cost of
constructing and equipping a new building in Affton,
Mo. Office—1209 Cass Ave., St. Louis, Mo. Underwriters
--Scherck, Richter Co., and Semple, Jacobs & Co., Inc.,

(jointly); Lehman Brothers and Lazard
The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Smith Inc. jointly.
ley & Co., Inc.

May 28 filed $1,000,000 of
dentures due July 1, 1984.
amendment. Proceeds—To

both of St.

Louis, Mo.

Wilmington Country Club, Wilmington, Del.
Oct. 27 filed $500,000 of debentures due 1991 (non in¬
terest bearing) and 800 shares of common stock (par
$25) to be offered to members of this club and of
Concord Ltd. Price—$375 per common share and $1,000

Co., Chicago, 111.

Central

and 40,000 shares of preferred stock
At par.
Proceeds—For construction

•

offering of $4,500,000 of common stock.
Pro¬
and additional working

•
Buckingham Transportation, Inc. (7/1)
May 4 it was reported that the company is seeking
early ICC approval for the issuance of 250,000 shares of
class A common stock. Underwriter—Cruttenden, Podes-

March 5 filed 100,000 shares of common

City, Utah.

was

facture of aircraft and missile

share. Proceeds—Together with other funds, will be
applied to the repayment of borrowings for construction
and/or for additional construction in 1959. Office—15900
San Jose-Los Gatos

Manufacturing Co., Kansas City, Mo.
announced that the company contem¬

capital. Business—The company is engaged in the manu¬
parts, aluminum containers
and beer barrels, aluminum curtain wall sections for the
building industry and other proprietary products. Un¬
derwriter—S. D. Fuller & Co., New York.

stockholders of record June 17,

1959, at the rate of one new share for each three common,
one new share for each five shares of preferred stock
on

ceeds— For expansion program

and

held

Benson

Telephone Co.

44,729 shares of common stock,

fered for subscription by

Barton

June

N. Y. Underwriter—None.
Western

was

of record April

before July 10,

registration

(letter of notification) preferred stock. Price—
($100 per share). Proceeds—For purchase of land;
payment on construction of building and payment on
purchase of equipment. Office — Oneida St., Oneonta,
•

Distilling Co.
was reported that the company
plans early
of $2,000,000 six-year 6% secured notes.
Underwriter—Fulton Reid & Co., Inc., Cleveland, Ohio.
Registration—Expected on or about June 29.

Bowl-A-Drome, Inc.

per

ftdent.
j

^Werdenhoff Mining Co.
(letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—For
mining expenses. Office—S. 1005% Eleventh St., Tacoma,

At par

Uranium Corp. of America,

holders

place lightweight gasoline driven golf carts and
for working capital. Office — 6880 Troost Blvd., North

vention Hall, to be

Chalet, located in Larimer County, Colo.
Office — 330 South 39th Street, Boulder, Colo. Underwriter—Mid-West Securities Corp., Littleton, Colo.

May 1, it

two

and for construction of a Grand
of Estes Park

•

Co.

—At par ($10 per share). Proceeds—To purchase addi¬
tional machinery and equipment; research and experi¬

subordinated deben¬
July 1, 1979 (convertible into common to July
1, 19C9.
Price—To be supplied by amendment.
Pro¬
ceeds—Together with other funds, for purchase of all of
the assets (subject to the liabilities) of the Booth-Kelly
Lumber Co. and the redemption of 38,084 shares of the
company's series A 3%% cumulative preferred stock
(par $100), and a maximum oT; 9,551 shares of its series
B, 3%% convertible cumulative preferred stock, $100
par.
Underwriter—Eastman Dillon, Union Securities &

June -10 filed $15,000,000

Oil

Under¬

142,526

Employees Insurance Co.

President.

Voss

Vulcan Materials Co.,

April 16 filed 2,000,060 shares of common stock (par $5)
Price — $10 per share. Proceeds — For acquisition ol
operating properties, .real arid/or personal, includinf
office furniture, fixtures, equipment and office space, b?
lease or purchase. Office — Wilmington, Del. Under
writer-—None.
MyrV L. McKee of Portland, Ore., li

•

Of these
completed sub¬
scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered initially to share¬
holders of record Nov. 1, 1958, in the ratio of one new
share for each 2.33 Shares held on that date. Price—$4
per share. Proceeds—$300,000 will be used for payments
on contract to purchase shares of International Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬
ance company; $500,000 for capitalization of a title insur¬
ance company; $500,000 for additional capital contribu¬
tion to Great Plains Development Co.; and $300,000 a»
an additional capital contribution to Great Plains Mort¬
gage Co. Office—319 E. "A" St., Casper, Wyo. Under¬

May 7 filed 252,526 shares of common stock,

Nov. 17 filed 1,449,307 shares of common stock.

shares 1,199,307 are subject to partially

May 27 filed 1,231,779 shares of class A common stock,
of which 231,779 shares will be issued to creditors. Price
—$1 per share. Proceeds—To be used for a waterflood
program, and for working capital and other corporate
purposes. Office—211 South Seneca St., Newcastle, Wyo.
Underwriter—Hill, Darlington & Co., New York.

—

United

Wyoming Corp.

Victory Markets, Inc.

capital. Office-—54 E. Main St., Norwich, N. Y.
writer—S. D. Lunt & Co., Buffalo, N. Y.

vx.

and

Worthington Products, Inc.
May 8 (letter of notification) $150,000 of 7% convertible
subordinated debentures due May 15, 1964 and 15,000
shares of common stock (par 25 cents) to be offered in
units of $500 of debentures and 50 shares of stock. Prico
—$500 per unit. Proceeds—For advances to Nautilus, a
subsidiary, for equipment and working capital; also for
working capital of parent and molds and dies for new
accessories. Business—To design and sell marine prod¬
ucts and boating accessories. Office—441 Lexington Ave.,
New York, N. Y. Underwriter—B. Fennekohl & Co., New
York, N. Y.

(letter of notification) 20,000 shares of class A
common
stock (par $2). Price—$14.25 per share.
Pro¬
ceeds—For inventory and equipment and for working

due July 1,

One Wall

underwriter.

debenture. Proceeds — To develop property
build certain facilities. Underwriter—None.
per

May 25

(7/9)
mortgage bonds
1989. Proceeds—To repay advances from its
parent, the Cincinnati Gas & Electric Co., and to finance
a portion of the company's construction program. Under¬
writer
To
be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White,
Weld & Co.; Equitable Securities Corp.; Salomon Bros.
& Hutzler; Morgan Stanley & Co. and W. E. Hutton &
Co. (jointly); Blyth & Co., Inc. and First Boston Corp.
(jointly).
Bids—Expected to be received up to 11 a.m.
(EDT) on July 9 at the office of the Irving Trust Co.,
Union Light,

June 12 filed

racing plant; and for work¬

and operate a

ing capital and other corporate purposes. Office—Notre
Dame Avenue at King Street, Winnipeg, Canada. Under¬
writer—G. Everett Parks & Co., Inc., New York has

Tyce Engineering Corp.
May 6 (letter of notification) 100,000 shares of common
stock (no par). Price — $3 per share. Proceeds — For
working capital. Office — 809 G. Street, Chula Vista,
Ccfiif.
Underwriter-—Pacific Coast Securities Co., San

•

Underwriter—None.

Raceway

May 25 filed 1,000,000 shares of common stock (par $2
in Canadian funds). Price—$4.50 per share. Proceeds—

lation of machinery and

Francisco, Calif.

Victoria

•

Proceeds—For construction, instal¬
equipment and working capital.
Office—511 Securities Building, Seattle 1, Wash. Under¬
writer—H. P. Pratt & Co., Seattle 4, Wash.

Street, N. W., Washington, D. C.

Tungsten Mountain Mining Co.
May 21 (letter of notification) $100,000 principal amount
of 7% first mortgage convertible bonds, to be offered
in denominations of $500 and $1,000 each. Price—100%

(2881)

Financial Chronicle

Freres

Co.

Citizens

(jointly);

National Bank, Los Angeles, Calif.

announced that the bank plans an offering
additional shares of i common-stock (par $10)
its stockholders of record June 30, 1959, on the basis

one

June 9 it
'

was

Of 210,000

new

share for five shares then held (after a 50%

rights to expire on Aug. 3. Proceeds—
capital ancl surplus. Underwriter—Blyth &

stock dividend);
To

increase

Co., Inc., Los Angeles, Calif.

Continued

page

(2882)
The Commercial and
Financial Chronicle

Continued

from

Consolidated
June 8 it

page

Finance

determined by competitive
bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.,
Kidder, Peabody & Co. and Shields & Co.
(jointly); Lehman Broth¬
ers;
The First Boston Corp.;
Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman

Corp.

reported that this company plans to issue
sell to residents of Indiana
only, $800,000 of 6%
sinking fund debentures due July 1. 1974. Price—100%
of principal amount.
Underwriter—City Securities Corp.]
Indianapolis, Ind.
was

and

Consolidated

May

Natural

received

Kansas

James Comerford, President, announced that
company plans later in year to issue and sell
$20,000,000
of debenture bonds, if market
conditions are favorable.
Proceeds—For investments, improvements, etc.
Under¬

Dec. 29 it

writer—To be determined by
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.

Inc.; Morgan Stanley
& Co, and The First Boston
Corp. (jointly); White, Weld
& Co. and Paine,
Webber, Jackson & Curtis (jointly).
ic Construction Products Corp., Miami, Fla.
June 26 it was reported that this
company plans an
offering of about 250,000 shares of class A common
stock,
of which 200,000 shares will be sold for
the account of
certain selling
stockholdei*s, and 50,000 shares will be
for

the

company's

account.

Proceeds

Co.,

ditional

Corp.

•

manufactures

offering

this Summer.

vertible

holders.

Underwriter—To

from
some

when

Inc.,

Considering the fact that traders
were
awaiting announcement,
probably late today, of terms of
the Treasury's plans for
raising
$4 billion, the investment markets
might be viewed as having put

relatively

good

show

this

past week.
little

was

far

backing and fill¬
the

Treasury and

corporate

markets are
But the fact remained
corporate
new
issues

concerned.

that

ap¬

peared to be doing better.
It

loose

emissions

appear

bidding for

has

remained

intact

have found

new

realistic
offer¬

new

4.95

5.05%. And

have

been

much

better

reception.

their

rather

the

the;r

basic

Northern

side

bankers.

the

The

and

work

issuers
market

and
gen¬

erally is rapidly moving into the
of

season
on

the

year

doldrums.

which

Since

brings

the

flow

new

been

small
pon,

Illinois

corporate material
has
held down a bit until
re¬

cently by poor response, the
in
dealers'
hands
is

ply

sup¬

not

burdensome.

Slowed

tures

issue,
of

$3.3

cumulations
That
tax
the

they

such

ac-

work.

are not

rushing to the

exempt field is evident from
letdown
experienced

Oregon's veteran bond issue

this

fi¬

could

Monday

million

one

deben¬

Terminal Towers
Co., is

pretty

will

recess

the

circumstances.

arocnd

portion

week

issuer^ appear to have taken full
cognizance of this situation
judg¬
ing by the forward calendar.
The week
dwindles down to a
three-day affair and hardly to be
termed robust even under

Walk

markets as the
country
celebrates Independence
Day with
three-day holiday. Bankers and

operation

least

this company plans the

of the

for

marketing,

Tuesday

and

much

this
local

Cleveland.

finds

the

City

15-year

con¬

Wayne
May 26 it

to common stock

Barney

Montreal,

with

market
bankers

itself

Canada,
virtually
to

carry
through
offering of $20 million of

tures

which

Seamless

TubeV Col which
has
100,000 shares of common stock
for sale.

wUl

And, Wednesday

goes to

as
an

deben¬

f~r bids.

Michigan

its

chum,

wide
of

excess

reported that this
company plans

Jones

Customers of

sec¬

stock.

Underwriters—Mit-

Woodside, N. Y~" Products
of alloys—in
'different kinds.

range

1,500

common

Templeton, Los Angeles,
Schwabacher & Co., San
Francisco, Calif
■

plant
a

was

ondary offering of about 90,000 shares
of
Proceeds—To selling stockholders.

Co.

cover

Calif.;

and

Division of General Mo¬

tors

Corp.
Vr
.'*>'~
Upon completion of the

theicompany

current

include" financing,
outstanding capitaliza¬
Bendix
Aviation;Corp., General tion of the company will
Major life insurance
consist
companies,: Transistor > Corp.,as an
Minneapolis* of 320,000 shares of common
industry, have been
stock
a

holding

fairly

even pace

Honeywell, Inc.;? Motorola, Inc.,
Raytheon Mfg. Corp. and the Delco

in their invest¬

ment

programs this year as com¬
pared with a year
ago. For the
first four

months, to April 30,
they put $1,346 billion into new
industrial
and
miscellaneous
bonds against
$1,460 billion in the
1958 period.
In

the

interval

same

$2,134 billion into

they put
Govern¬

ments, up from $1,243 billion, and
public utility bonds, it was
$277 million against $273 million.
for

Investments in

comnion stocks,
though well below the
foregoing
categories, have been expanding

and

reached $110
million, for the
four months this
year against

Milton
and
24

Blauner

Stanley Heller

& Co.

Co.
on

Inc.
June

offered 95,000 shares of Accu¬

rate

Specialties Co., Inc. common
stock at a price of
$2.50 per share.
Net proceeds from the
sale of
the

common

will

used

by the company for the purchase

has

maintained—and rightly

that
up

the

its old debts before

added
used

to
for

proceeds

working
various

will

capital
corporate

pur¬

poses.

we extend

Broken Agreements

During

World

viet

leaders

also

have

world.

addition,

broken

agreements

States

since

This

the
the

and

recognized

long

continuous

background

failure

Until

cleared up,

the

meet

these

good credit position here
where.
But it seems to
this

germanium transistors, diodes and
rectifiers. Metals
being fabrioated

expected

question

goes

consideration

rating of
also

does it

make

extending credits?

the

legal

matters

far
of

Soviet

achieve
or
me

else¬

that

beyond
the

credit

Union.

must consider the realities of

international politics.

talk

about

As
not
of

you know, Khrushchev has
only made statements in favor

increased " trade and better

derstanding.
few

West

other

which

un¬

He also has uttered
remarks
are

about

worthy of

the

men¬

tion.

Would
;

Inconsistent

1956,

Khrushchev
boasted
that, "Whether you like it or not,
history is on our side. We will

bury you." One
"We

think

year later he

capitalism

said,

should

means

be
war

and

military conflicts — but
through an ideological and eco¬
nomic struggle."

These

Soviet Union

manufacturers

mere

them

Straits, in Berlin,
recently, in Irag.' In the
actions, how much

these

destroyed—not by

obligations.
cannot

major
Soviet

sense

between
the

Specialties
Co.,
Inc.
produces high purity, ultraprecise
metals and alleys, for use
by other

integral compo¬
nents in producing semi-conduc¬
tor devices, such as silicon and

II,

Russians
52

concluded

United

Union

face

forget about the billions of >4dllars loaned to the Czarist
govern¬
ment by
investors all over the
have

whole

the Formosa

and

The So¬

chosen

position taken by the Communists
Lebanon, in the Jordan crisis,

interest

supported

Since that

resuming negotiations.

have

series of aggressive actions
against
the Free World.. I refer to the

gave the Russians about 11 bil¬
lion
dollars' worth
of aid.
The
Russians offered to pay us 300

are

sians

]

million dollars in 1951.
time they have shown

States and the Soviet

what has transpired on
the international scene? The Rus¬

War

understanding between'

United

Union,

•

Since Khrushchev made his
ipipassioned plea for peaceful trade
the

so—

Russia is the only major
country
with which we have been unable
to reach a settlement of lend-lease

in 1933.

the

short-term bank
;
A V; '
-

and better

Soviet Union should
pay

any new credits to them,

operating
plants
in
Woodside,
Y., and Hackensack, N. J. The
of

long-term i

private credits to finance its pur¬
chases here. But our government

the

balance

Doing Business With the Russians
Soviet Union must have

of additional
equipment and pro¬
duction facilities for both of
its
N.

$19,200 of

Continued from
page 15

accounts.

Accurate Specialties
Common Stock Offered

and

loan.

$60

million in the 1958 period.
They
held $1,752 billion of such
securi¬
ties on April
30, against $1,442
billion a year
earlier.

Accurate

of
the

Offering-—Expected toward the end
1959.
f/•
Manufacturing Co., Los Angeles, Calif.

third quarter of

Co.'s

necessity to shop
at

long

slated

ancTput

both
Now

nancial

up, especially the major
institu¬
tional outlets find it a
bit of a
around

4.95%.
Edison

forthcoming

curtailed

small

So, investors, with funds
piling

Gas

return

issue, also with a 5% cou¬
but priced to yield 5.15%.

The

is another

influence

basis

Consolidated Edison's 5V8S were
on a 5.05%
basis, followed
by Public Service Electric & Gas
5Vss on a 5% basis. Then came

prospects.

Naturally there
a

this

encountering

offered

Brockton

the near-term

they

comes

prospective
customers deem to be terms
more
in keeping with the
market and

prices re¬
yield of anywhere from

turning

bankers, bidding for these
undertakings,
evidently
getting
what

the

week.

through

It is worthy of note that the
last
batch of Double A
rated issues
brought to market have been of¬
fered to investors at

priced

ment

current

the invest¬

closer

(8/5)

Insurance Investments

St. Joseph Light & Power 5s and

indicated that recent

was

Light Co.

Smith,

turned

was

down

„

ing,

Union Electric Co. (Mo.)
]
23, J. W. McAfee,
President, stated that the com¬
pany plans to sell about
$30,000,000 of additional common
stock later this
year
through rights to common
stockholders. Proceeds—For
expansion program. Under¬
writer—May be determined by
competitive bidding.
Probable bidders: Lehman
Brothers; White, Weld & Co.,
and Shields & Co.
(jointly); Merrill Lynch, Pierce, Fen¬
ner
& Smith, Inc.
j

Proceeds—To be used for construction
program.
be determined
by competitive bidding.
Halsey, Stuart & Co. Inc.; Blyth & Co.,
White, Weld & Co. and

ings. This trend started with the
sale of Consolidated
Edison Co.'s
big issue several weeks ago and

secondary

announced that

reported

Feb.

(7/7)

gotten

ground in

narrow

was

that the
company plans an addi¬
tional common stock
offering, of between $2]500,000 to
$3,000,000.
Underwriters—Glore, Forgan & Co., Chicago,
111., and Rowles, Winston &
Co., Houston, Tex.

Underwriter—To

syndicate and settled back
five points from the
original

have

it than

Ry.

.•

Tuboscope Company•

June 15 it

that the
company plans an of¬

approximately $10,996,000
debentures, to be offered first

Getting Together

there

Fuller & Co., New York.

•

Probable bidders:

Underwriters finally

True

Chicago

price range.

Pacific

com-

ifrst;'mortgage ^Ew>ndsTater

A;]/ ^

*
week

announced

Speedry Chemical Products Co. Inc.
May 15 it was announced that-the
company plans an
offering of 208,666 shares of common stock.
Underwriter
—S. D.

Associates, Cincinnati, Ohio

Northern

June

plans to issue
mortgage bonds. Pro¬

construction program.

was

ic Pacific Power

was announced that
the company
and sell $18,000,000 of
30-year first

ceeds—For

President,

•

Bids will be received
by the Company until noon
(EDT)
on
July 7 for the purchase from it of
$5,000,000 equip¬
ment trust
certificates. Probable bidders:
Halsey,
Stuart
& Co.
Inc.; Salomon Bros. & Hutzler.

Georgia Power Co. (9/17)
Dec. 10 it

(jfoio?A-'/-

Underwriter—To be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co,
Inc. and Lehman
Brothers (jointly)
Merrill
Lynch,
Pierce, Fenner & Smith, Inc.; Stone & Webster
Securities
Corp.;;The' First Boston Corjp. and
Smith, Barney & Co.
(jointly).1

—

polyethylene film. Office—36-35 36th
Street, Long Island
City, N. Y. Underwriter—Maltz Greenwald &
Co., New
sometime

pany plans to IssU6 and s£ll
in the year.

fering of 950,000 shares of capital stock. Price
$10 per
Proceeds—To increase capital and
surplus. Un¬
derwriter—John M. Tait &

June 8 it was reported that this
company, which is pri¬
vately owned, plans public offering of
175,000 shares of

Offering—Expected

announced that
company plans some ad¬

common

share.

Co.,

company

Co., Cleveland,

Puget Sound Power & Light
May 15, Frank McLaughlin,

company plans some financ¬
ing. Business—Distributor of
electronic parts. Offering—
Expected in August or September.
V.
:V../
North American
Equitable Life Assurance Co.
Dec.

Corp.

Newark Electric Co. of
June 2 it was reported that

Extrudo-Film Co.

York.

was

•

it was reported
mat- the company plans
early
registration of a .minimufn of
49,000 shates Of. cfommbn
stock. Proceeds—-To
selling stockholders. UnderwriterFulton Reid &

White.

(jointly); Kuhn, Loeb &
Eastman, Dillon, Union

reported that the company in the next
few months expects the issuance
and sale of about
$2,000,000 of debentures. Underwriter—D. H. Blair &

Business—The

June

and

o.TV

New York. Offering—Not
imminent.

• Park Drop Forge Corp.

ic Missouri Pacific Ry.
(7/16)
H
Bids will be received
by the company on July 16 for
the purchase from it of
$3,600,000 equipment trust cer¬
tificates maturing
annually from Aug. 1, 1960 to 1974.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler.

was

stock.

Corp.;

—

York.

—

common

Securities

stock financing.
Underwriter—Auchincloss, Parker & Redpath, Washington, D. C. and
New

—

Paso Natural Gas Co.

Travelwear

May 19 it

Stockholders voted April 28 to increase the
authorized
preferred stock to 1,000,000 shares from
472,229 shares,
and the common stock to
25,300,000 shares from 20,300,000 shares. Proceeds
For major expansion
program.
Underwriter—White, Weld & Co., New York.
15

Equitable

Beane, New York.

Essex Universal

(jointly);

Leeds

Coral Ridge Properties
(Florida)
June 15 it was reported that the
company plans an offer¬
ing of $4,000,000 to $5,000,000 of debentures. Underwriters
—Cruttenden, Podesta & Co., Chicago, 111. and J. R.

June

have

Securities & Co.
(jointly); Lehman Brothers and Bear,
Stearns & Co.
(jointly).
'

Inc.

Weld & Co. and Shields &
Co.

—

up to $50,Stockholders would
pre-emptive rights to subscribe for these
securi¬
ties. Proceeds—For
purchase of
equipment, etc. Under¬
writers
May be Lehman Brothers and
Hornblower &
Weeks, both of New York.:
v.. ''
'
-

City Power &

Co., Salomon Bros. & Hutzler

Working
capital. Underwriter
Clayton Securities Corp., Boston,
Mass.
Offering—Expected in the middle part of Sept.

Williston

Pan American

was

For construction
program.
Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Halsey
Stuart & Co. Inc.; The First
Boston Corp. and
Blyth &

Thursday,-June 25, 1959

World Airways, Inc."
May 26 authorized the
company to offer
000,000 of convertible debentures.

Sept. 17.

Light Co.
reported that the company
plans to issue
and sell
$20,000,000 of first mortgage bonds. Proceeds—

19,

sold

(jointly); Ladenburg, Thalmann & Co.; Lehman
Broth¬
ers, Bear Stearns & Co., Eastman
Dillon, Union Secu¬
rities & Co.,
Kicider, Peabodv & Co. and Salomon Bros.
& Hutzler
(jointly). Bids—Expected to be received on
Aug. 5/ - //;';■r..
" ':.V
];/ ' :]

Dillon, Union
Securities & Co.
(jointly); Harriman Ripley &HCO. Inc.
Registration—Planned for Aug. 21.
Bids—Expected to
be

Gas Co.

I'm

are
strong words. As far
concerned, it is the ulti¬

mate in inconsistency to
support
and finance the industrial
expan¬
sion of a nation whose rulers' ex¬

pressed gcal is to d stray us!
Let's look for a moment at what
Sov'et leaders want from us
in the way of trade. Are
they inthe

(2883)
Volume

189

terested

Number 5858

The Commercial and

machinery—much of it destined
tfter-Soviet chemical industry.

goods?

consumer

for

like food, clothing, or
household appliances made avail¬
able in unlimited quantities to the

Would they

people? As Eliza Doolittle
ly—
I
s a i d- in
My- Fair .Lady
— "Not
bloody likely'*'
j./V :

Financial Chronicle

Hitler's
Businessmen
-

Bait4

,4..

everywhere should

remember the blandishments with
which Hitler wooed Britain and
,

United -States in the years bemauds 'todav that, they made in-fore
last war. The bait now
the thirties. Both Khrushchev' and °i£ere1d '° lj!®
"ft unlike
Mikoyan have asked for technical.'h®
bait that Hitler dangled
They'are making the samd

models of our
and. instru-

latest

the

want'

They

equipment.

and

are

Russian

knowledge

countries on the
Soviet Union. . Its secondary goals
dence of weak

before our noses 20 or so yeais
-aSQ.;
^ r
^ .

competitors with
cars
Buick, - and advanced machinery—for there is
Packard models of 10 years* ago!' a dea'dly iron fist hidden in this
hA
that tprhniral
velvet'&love of so-called "peacekriowledee and hlw. equipment'f<* fade."
are not
being sought to alleviate
Two world wars have proved
the lot of the Russian peasant!
that trade alone is not the road
Thei;

Russian

;

oriented

u,x.~;v -tirf."'

economy

' is

.-.rvf

not

lhan

Just
look at the tremendous gap be¬
tween
Soviet, technological
a.dr
vances and the standard of living
of .fetlfo '

......

realize^ this—even
do.
J

far,

only

I'v&t

»'■

this

But"

the

•»,

Soviet.',

total

much left merly with Du Bosque & Cok and
to other Glidden, Morris & Co.

There

mowers.

5chemicals

thing

dividends:

the last six

28-% C

1959

15,

record

can

able

holders

•

Cumulative
Stock are pay¬
1959 to stock¬

15,

recodfl August 31, 1959.

course.

;

needed

chemical indus-

Anierican

The

hydro-electric

proud

of the .fact that not

in
favor of selling the Russians what
it took us years of sweat and hard

one

business with him.

member of the M.C.A. was

*work to achieve.
how

is/one

technical1
United

the

advantages

outstanding
that
the

the Soviet
advantage must

States has over

Union.
riot

Chemical know-

Such

traded away!
Worlds nations,

lightly
Free

Other

have not been as hesitant about supplying the Soviets
with
machinery
and
technical
skills. The recently reported British-Soviet trade agreement is a

however,

good example. This five-year
—which

goes

into

effect on

pact
the

first of July—contains

provisions
for'giving the Russ'ans complete
chemical
among

and

synthetics

things. In addition,
countries also are
Russia' all
types
of

other

other European

sending

plants,

street of Kabul,
Then they put
up a huge sign,announcing that
"This road was paved—coqrtesy
of the USSR-^wr partner and
fellow pioneer in the struggle to
tame nature."
ffe
.

not think we should try
to outdo the Russians in their
propaganda moves. However, I
do believe we should present the
vastly
greater contributions
of
J

the West for what they are—
sound econoimi^pivestments that
will- bring an ^^reased measure
of prosperity to underdeveloped
countries -— without any strings
attached.
In most cases, the leaders of
small, politically sensitive countries have not yet realized the
true nature of Soviet aid. They do
not realize they are being enticed
into the deadly net of Kremlin
Colonialism. Soviet aid means
increasing the economic — and
eventually the political—depen-

tlTey>move

goals/

quicker if other nations sell the Soviet Union the
technology it needs.
'V,;.
it seems to me that our course
is clearly drawn. American industry must not surrender its advanced processes and equipment
to the Soviet Union. We also must
continue to urge our allies to reject deals designed to strengthen
the Soviet industrial machine,
*
*
*
come

even

- Too many Americans have been
hammering away at our national
self-confidence by waving the Red
flag of Soviet technological progress before us. I am fully aware
of this progress. But I also am
aware of Soviet shortcomings —
especially the ones the American
chemical industry has been asked
to remedy!
I also know something about

free enterprise system. I
the business
leadership of this country, in our

our own

have a strong faith in

declared

cash dividend for the

June 16, 1959
Bogota, New Jersey

sec¬

ond quarter of the year
of 65
cents
per
share

the Company's com¬
capital stock. This
dividend will be paid by
check On July 15, 1959, to
upon

DIVIDEND NO.

Mining

Hudson Hay

Smelting Co., Limited

and
A

mon

Dividend

seventy-five

(S.75) (Canadian) per share has
declared

the Capital

cents

been

August 14, 1959.

Treasurer

stockholders

common

record

close" of

the

business

Stock of this

Company, payable September 14,1959,.
to shareholders of record at the close

June 26, 1959.

C. CHRISTENSEN.

fice President end Treasurer.
San Francisco. Calif.

•

Gr^E"

CONSOLIDATED

NATURAL GAS

,gj
i

COMPANY,

|
|
§§
|

30 Rockefeller

Plaza

N. Y.
r. '
|v'••
A
Dividend No. 46 ^

New York 20,

The board of directors
has

regular

this day declared a

quarterlv dividend of Fifty-Twp
and
One-Half Cents (Siy2e)
per
the

share on the

ord at the close

15,

capital stock of

payable August
stockholders of rec¬

Company,

15, 1959 to.

1959.

isi

of business July

Southern

■

John Miller,

Secretary

Edison

BlSimgli

California
Company

June 24. 1959
DIVIDENDS

The Board of Directors

CLEVITE
CdR

PORATION

CLEVELAND,

OHIO

p o w e r pressure '

plants, the Russians came.inland

try quickly grasped the implica- paved the mairi;
tions of Khrushchev's offer—"and; the capital city;
refused

from'.thp Russians as
towaird their industrial
And this pressure will'

i rectors

June 17,-1959,

Vice President and Secretary

♦' outr:pf^'rt6miclwar will be fought in pro-

show —. and viding> the peoples of the world
ientangled in bu reaucratic red tape
act is "colossal." To get>
for.a lqng tmie. And there is also/bigger run for ^tfie ruble — the -ing# Todav America has the lead.
a serious equipment shoitage.
Russians
: go;"
in
for
splashy, We must do all in our power to
These are the problems Khi'ush- spectacular forms of aid, and they maintain this lead.
chev was trying to solve when he publicize them all over the place.
This is not going to be an easy
offered to buy S100 million yvorth
* For 'vexamp4||||vhileWestern vtask; vThe Soviets are not standof Amevioan chemical equipment engineers wen$$pboring high in jng stilly 5s yoii'well know. -We
and. technology — on. credit, of the hills of Afghanistan on much- cari
expect increasing economic
act of their

Company

Robert A. Wallace

caiv,^ed, clothe^;g
woll'as
1

get maximumnpublicity

Rjctfic Gas and Electric

payable

j. F. McCarthy,

?very

stockholders of

August 31, 1959.

the 4.6%

September

of business

exist—fprnthfr.
has been

the 4 H% Preferred
payable

$25 par value Preferred

Soviet chemical industry

quarterly dividend of $1.06J^
share

stockholders of

•

Dividends'

fronv' a countries outsicte 'the Communist Kremlin knows this. This is why
bloc; is only; 1% of the world's Moscow'has embarked on an eeobeen; in Operation tor* fptai.;" Little r-Switzerland,
with n0mic war against us. It is a war
months. >
'f*■iV.U'l/4'Oth the population, exports the Russians can never win—uilabout,., the samd amount as the iess we finance , them and help
Chemical Industry
Soviet Union fey :T
: them-build up enough industrial

agement^ problems

record

the close of business June

29, 1959.

ar£ evident

per

Common Stock dividends are

July

Ipbsecir to,;expar£dL 300% by 1965;t, hardly alarm. Approximately 95% eral Hull so neatly put it a few
The; Russians are interested Aiit of "all Soviet aid goes' to countries months ago. The Russians cannot
developing facilities /which ;will;,near her borders — Afghanistan, succeed alone—they can only improduce
alcohol, aplastics, syri- India, Burma, Iraq, Indonesia, and pose further hardships on their
thetic fibers, and synthetic rub- formerly Yugoslavia. When com- own people.
/ber. Capital expenditures of $25 pared
with the aid the Free
Certainly,; as Soviet industrial
-billion have been allocated to the World has supplied, Soviet aid is capacity grows—some benefits are
'chemical industry for rebuilding infinitesimal. Until Soviet indus- sure to trickle down, to the Rus*and expansion. In addition, much try expands to five or six times sian people. This process has been
of the $17 billion slatedfor.>.tbe .its
present size,5: the;1 volume of • .evident for the past few years. But
Soviet petroleum industry will gov Soviet aid necessarily will remain" it will be a long time before this;
into petrochemical production.
-J; small.
tridkle 'becomes-' a flood I Khrush-,
V Without- help
from, the West, "
Soviet Aid Program's
"
chev needs a dozen seven-year
experts think.that Russia's chemi-fe^H^v^-'— Effeciiveness:.'
;cal industry will very likely fall? 'jho effectivdnSs of Soviet aid aJivohe'd'?c—as
we can.'
"
short ;bf .:its ^goal^. -Not
er|ough. prograrns,- however, -is another
^
v.
•
•.
skilled .lechniqidhs are available gf-ory. The Commissars in charge ;^ Battle to Aid Underdeveloped
,
for the i;apid shift_toi plastics and 0% RLlssian aid programs are very
Areas
synthetic iibersr Difficult
• much
like circus barkers. They.. ^The crucial battle in the eco-

August 31, 1959.

Cumulative Preferred Stock.

Key

•;; /

share on Common Stock.
share on the 4.6%

50c per

They- are , intersxed in that such activity can become : f he United States is now preand ^missilespot" very importantIn time—but right pared to counter any military agdishwashetsr-'how total Sovitet trade with all' gression by Soviet forces. Th e

has

stockholders

Paper Board Company, Inc. has this
day, declared the following quarterly

look at theif heW seven-year plan,-

which

payable September 30,

1959

Federal

Directors

Board

The

on the Russian..developed
not;-relax for mahy. ^swing the

} These / facts

share, has been

declared

Philadelphia, June 16, 1959

cleaners and

vacuum

the Common Stock, par

Common & Preferred Dividends:

;

FEDERAL PAPER BOARD CO., inc.

denying the strik¬

same

J. H. Mackenzie, Treasurer

rocketry—since the war. But any
dictatorshiiDable
to
conscript

can

quarterly dividend of 60c per

record

ing progress made by the Russians
in certain fields—such as cosmic

under-

DIVIDEND NOTICE
A

October 1,1959 to

Soviet ; economic offensive. - The Russians; iakbr and concentrate all national
also are aiming at the rest of the resources on a single' objective,
world,; particularly

Company

Stock has been declared

Improvement

per

DIVIDEND NOTICES

countries which can build pyramids, roads, sputniks,
people ; will
balance in the cold war missiles; or what have you! But
years to come,
p.-'; •
v , .
" ^cqnflict.
' :r ,
. Soviet leaders have yet to prove
U
TheTKremlin ^planners are' in- ■ fHowever, in my opinion, Soviet that their 1 system can give the
terested in elect tonics—not PiotAr-trade and aid programs to these Russians anything comparable to
boats.
They
a*e- interested*-in^eduntri^s haveibeen- grossly over- the benefits that are/derived from
.nuclear power—mot powerMawn-'estimated. I w|l quickly concede a free, democratic society.
\
their

and

„

world.

discussing

been

trade.

part? of

.technological skills to the Russians
—Moscow will be able to expoit
friends
v,ie| products^could
then flood markets
all over the
better

Our| European

The United Gas

value $13.50 per

j
Of course, if the United States
and ' the rest of the Free World
supply ; heavy equipment a nd

pectect.

East-West

planners have the power to ignore
and abuse the Russian consumer—
grip

economic warfare is concerned—

■

extremely
good political results can be ex-

citizen!

people.

Russian;

peace.

should

consumers.' It is a
works for the

economy. It
State—not for the

power

their

ciirA

-n.^s—•••

rrn__

"burying" to be done—as far as

possible on Western let us be the ones to do it!
economic interests and political
W. H. MacKain Co. Opens
alliances. > - t ; • ,
, The real value of Soviet aid will
W. H. MacKain & Co. has been
not amount to much until the So- formed with offices at 111 Broad¬
viet industrial machine has developed far beyond its present way, New York City, to engage
stage. The , current seven-year in a securities business, Warren H.
wherever

NOTICES

DIVIDEND

any

Soviet-built; sidiziilg

resemblance
have
to Ford;

striking

nam

there

might.

prototypes for

ments—to serve as

Vn.i

nomic

trade personnel for purposes of
subversion, and to inflict damage

Jhe
chinery
their own production. Remember-^>nly to copy ——
.
,
.
,
,
Russia is not a party to, any think too much "repeat business"/.There is not going to be
international patent conventions! " can be expected. The Europeans over, to export as "aid'
Perhaps
you. > have'
noticed the aren't "trading." ,. They are sub- countries—except when
machines,

advanced

and

technical

introduce

practically untapped industrial
capacity, and in our healthy eco-

authorized the

has

payment

quarterly divi¬

the following
dends:

COMMON STOCK

payingadividetid of 30 cents

a common

share on June 26,

1959. This is

the company's

148th consecutive

quarterly

dividend.

Dividend No. >98
65 cents per

shore;

PREFERENCE STOCK.

4,48% CONVERTIBLE SERIES
Dividend No. 49
28 cents per shcre;

preferEnCE STOCK.

4.56% CONVERTIBLE SERIES
Dividend No. 45

28% cents

per

shore.

The above dividends are pay¬

able

July 31, 1959 to stock¬

holders

record

July 5.
from"

Checks tvilb be mailed
the Companft

office in Los

Angeles, July 31.
NEWS
p. C.

AT CLEVITE:

Our precision
ucts are

prod¬

being used

in every major

U.S.

missile program.

June 18, 1959

hale,

Treasurer

•

'
•
.

-44

(2884)

The Commercial and Financial Chronicle

Thursday, June 25. 19c

velopments—Bank

BUSINESS BUZZ

Helsinki,
Journal

•

Finland

Finlani

(paper).

Political

Economj

June

•

1959—Containing article
Determinants of Risk Pre
miums
on
Corporated Bonds

on
—

Behind-the-Scene Interpretation*
from the Nation's

Capital

Production

Functions,

tions,

Economic

and

Effect

for

Admiral

lot going on in the nation's

the

liberal

capital

these

days
New

from

everyone

affecting

President Eisenhower

York

ed"

Honolulu.

Congress is taking action
that

Bureau

wives

affect stockhold¬

branch

"trust¬

Labor

Statis¬

had

already

had declined for several months,

the all-time high prices resulted

stance,

primarily from increased

the

National

suspected.

Commerce

Depart¬
ment reported that
personal in¬
come
of
Americans
in
May
reached an all-time high.

SNAGBOTTOM

slightly in May. Actually,

rose

ice

costs.

housing,

There

ANNUAL

year personal income

was

annual rate of $369Vz billion or
about $20 billion more than the

Vice

Personal

President

Nixon,

Government officials say that
all indications are that it is
go¬

his onetime school
wife, Pat, have been
getting up a little earlier lately
to study Russia. The Vice-Presi¬

ing

dent and Mrs.

cost

money

build

and

borrow

ied

home during

Dr.

22 for Moscow.

will

money

the

little

by autumn,

scarce

During
put

gress

the

past

the

final

the bill which

touches

direct

the

time

same

increased
the

housing
the

from

interest

loans

Traveling in
jet plane, they

ceiling

the

action

bill

the

House

porary ceiling
debt
to

the

national

$295,000,000,000

June

30,

1960,

permanent

request

cific
4

lifted

and

Eisenhower

tion's

until
the

rate

was

(no

whether

the

assertion

by
Chairman Howard W. Smith of
House
Rules
Committee
summed
up the
sentiment of
most conservative members of
an

travel
the

the

declared

when
the

crease:

the

regret

con¬

debt limit in¬

because

are

year."

politics

during

members

amendments

vote

insisted

the
its

calling for higher

price supports for wheat de¬
spite the fact that we have more
wheat

now

than

can

give

away.
the
don

Senate

Democrats,

leadership of Senator Lyn¬
B. Johnson
in particular,

lost

ground

when

with

was

the

public

refused tp confirm the

ijemjnatlpu of
*0r

and

secretary of Commerce,
a

ator

personal

Clinton

public

victory for Sen¬

Anderson,

the

advocate, who bit¬
terly hates Mr. Strauss and vice
power

versa.

Democrats like
Senators Harry F. Byrd of Vir¬
ginia: John L. McClellan of

Arkansas; James O. Eastland
.

Mississippi,
mond

has

thus

far

that

Russian

try

nearly

the

Vice-

Nixon

Russian

ington
and
a

will

the

are

editors

will

good

faiths

this

Economic

have | been
studying a
Russian
in their lovely,

Berlin:
and

but heavily mortgaged home in
the Spring Valley section of the

District

Columbia.

Moscow
in
July
is
normally. More tour¬
expected there this year

Funds

Federal
Committee

Market—A

—

the

Reserve
Board

Federal

Study
System

Gov-

Reserve

Finland

—

Recent

economic

takes

of course that

navigator will have

Found;

Foundation,

Offb

Reports, 477 Madison Av<
York 22, N. Y.
(papei

New
on

request.

\
, Invested in the Gas Indu

try

—

Don

Herold

Americ;

—

Association, 420 Lexingt;

Avenue,
(paper),

New
on

York

17,

request.

•

...

Midland Adds Two
(Special to The Financial Chronicle)

i i

Road.
with

Mr. Braden
Central

was

States

former

Investme

£0

de-

Attention Brokers and
Dealers.

will

I
i

and

Russian

Our New
•

Carl Marks
FOREIGN

the

TEL: HANOVER 2-0050

ceremonies in New York

~.rI

•

NEW YORK 5, N. Y.

TELETYPE NY 1-971

LERNER & CO.
Investment Securities

10 Post Office

before

going to Russia will participate

CAnal 6-3840

SECURITIES ^SPECIALISTS

20 BROAD STREET

involved.

Vice-President

& Ho. Inc.

York telephone
number is

accom¬

American jet or jets
Moscow. Then there is a
question of fuel, and numerous

Ford

Indian Head Mills
Official Films

into

The

tion—Ford

the

Southeastern Pub. Serv.
Airways

correspondents

other things

Nation—Booklet

Botany Industries

photographers to Moscow. This
means

TRADING MARKETS

proposed
amount

American

the

Counci

System, Washington, D. C.

Department.
Pan

activities

Mission—Press

plan¬
ning by various departments of
government, including the State

fly

Wealth

Gas

before.
as

Research

•

ernors

considerable

■■■.

Federal

views.]

and

—

Guide

Investmei
Leo Barnes-

—

pretation from the nation's Capital

trip

College

Inc., 2 East Avenue, Larchmon
Y., $3.95.

Information office of Ber-

and may or may not coincide with
the "Chronicle's" own

create

Buying

COLUMBUS, Ohio —Robert i
Press Section, Consulate
General, Federal Republic of Braden and Robert C. Clouse hai
Germany,
460
Park
Avenue, joined the staff of Midland Invei
New York 22, N. Y. (paper).
tors
Company,
1566
Waltha
lin

Fate

I ,

■

Michigj

Basle, Switzerland (paper).

for the Soviet

ever

Uni-

Annual Report — Bank
International
Settlements,

for

[This column is intended to re¬
flect the "behind the scene" inter¬

will

Research

—29th

spread some good will among
the Russian people. In an effort
to
do * this,c that
is why
the

Nixons

crowded
are

Change—Bureau of Business

photographers

County: Some Aspects

South

Funds

Companies

and

all

1959

Mutual

American

versity of Maryland,
Park, Md. (paper).

country

910

New York 16, N. Y. (paper), 50£.

hoping they will be able to

little

(cloth), $

Gov¬

47th Stree

Y0Ur

Eisen¬

American

Publishers, 15 West

Association, 12 East 36th Street,

Baltimore

traveling

President

Avenue, Chicago 80, 111.

Related
Bankers

Johns
Hopkins Press, Homewood, Baltimore 18, Md. (cloth),
$6.00.

traveling

summer

and

Alliance Policy in the Cold WarEdited by Arnold Wolfers—The

candidate for
Presidential

for

People
political

Embassy in Wash¬

hotel problem

The

for

Union.

than

they

Credit

1959—American

Bank for Internatiinal Settlements

approval. Of course
number of correspondents

this

coun¬

ernment.

correspondents have ap¬
plied for making the trip. Their
names have been submitted
to
the

hower and

American

will

Republican

officially

fact that

jets.

Data,

keenly by offi¬
Washington, and the diplo¬
matic colony here.
Mr.

—

Agricultural

have

everywhere

New York 36, N.
Y.

(Indiana),

will be watched

for

aircraft

They

New Frontiers:
Story i
Standard Oil Company of Ind
ana
Standard Oil Compar

Bookshelf

United

cial

handle the big Ameri¬

can

the

Stree

17, N. Y. (paper),
:V

Toward

commendations

"rowdies."

unofficially

the

Mrs.

have been. Their visit to Russia

they

made

in view of the

Some

countries.

spread good will for their

and

and Strom Thur¬
South Carolina, voted

label

the

Mani

—

deportment after
spat upon in a couple

were

the

Departmen

Hungarian Revolution
Tibc
Meray—Frederick A. Praege

Praised

people

Chicago.

pany

Conservative

what

the

nomination

ists

The

take-

Highly
won

some

visit,

(cloth

Days That
Shook
Kremlinr lmre
Nagy and

Business

Foi

68th Si

Thirteen

program

Vice-President and

switch

the

The House looked bad
political¬
ly when it rejected a new wheat

part

of South American countries by

the

Large Press Contingent

week in no uncertain
terms in
connection with other
measures.

are

two

Mos¬

and

exchange

the

Presidential party will have to

can

Both the House and the Sen¬

played

may

cow

Politics As Usual,

program.

expositions

they

Vice-

have

state

the jet plane
they plan to make
the trip in requires a
very long
runway to land and take-off in.
Of course, the airport at Mos¬

But

York

request.-?

States by their

under, it will be one of
important visits Mr.

Russia

that I have to

to the floor.

necessary

House

New

cultural

Nixons

President Eisenhower.

facing a $12,000,000,000 deficit
nt the close of this fiscal

ate

the

most

Nixon

Virginian

outset

of the

bring this bill
it

the

cow

interest

the

will

Regardless

Perhaps

sideration

Both

leaders.

not

visit

Williai

Ahead?—Ec<

Problems

New York

marking the opening
of the Russian exposition there.

aspects
of
a
"private
enter¬
prise" visit is to be determined.

on Treasury bonds
subsequently considered.

Congress,

June

Nixon

other Russian

Steam

Ec<

Association of
facturers, 2 East 48th

sia Mr. Nixon plans to meet with
Premier Nikita S. Khrushchev

earmarks

ki% ceiling

will be

point of information, J. C.—
checking credentials?"

may

marked

•

—

nomics

The

Whether

spe¬

suggested)

with

National

around the world. While in Rus¬

President's

Administra¬
lift

The visit of the Nixons will be

watched

and

ceiling from $283,to
$285,000,000,000.

000,000,000
The

;

raising the tem¬

Repoj

195
Controlle

City

study
Cooperation

TV A—Full

between

another

Who's

some of these things
yet to be worked out.

are

Annual

Diebold, Jr.—Council
eign Relations, 58 East
New York
21, N. Y.
$6.50.

expo¬

However,

mortgages.

passed

"Just

and return home via the Pacific.

guaranteed

Yor

Controller for

Plan:

nomic
AILEN, JR., 1,59

on July
big modern

New

Pittsburgh, Pa. (paper).

the

for

City

Shuman
-

fly non¬
stop over the North Pole, a trip
of about 9V2 to 10 hours.
They
may subsequently go to Siberia,

law-makers

Union

25.

4.75% to 5.25%

rate

and

loans.

Soviet

the

—

edition-

fiscal year ended Dec.
31,

sition in Sokolnika Park

authorizes 8100,-

the

Revised

Pa.

Rene

—

—Office

©COCA.

opening of the American

Con¬

week

going to the Capital

are

Col

Planning

Schuster,
(cloth), $3.95.

President's

They

Dodge

World
—

Pittsburgh,

Milton

the economists insist that mort¬
gage

Simon

accompan¬

Eisenhower,
brother,
and
others, are going to fly away
from the United States on July

the next

Nixon,

several months. There
is plenty of mortgage
money on
hand at this time, but some of

DINNER

teacher

corresponding period in 1958.

Estate

Changing
Wormser

Richard

119 West 40th Stree
New York 18, N.
Y., $8.50.

FREE

to Visit Russia

Managemen

poration,

MEETING

and personal care.

Home

Handbook—F.

STOCKHOLDERS'

medical

In the first five months of this
Nixon

Nursing

serv¬

Ceiling—Marsha
—

$1.50.

® CORP

advances

were

clothing,

Debt

Robinson

The
Brooking
Institution, 722 Jackson Plae
Washington 6, D. C. (paper

prices hit a record
high in May. Food prices, which

govern¬

the

Basic

Consumer

ment, front page news is being
made nearly every day. For in¬

Leve

Scientific
Research, etc
—University of Chicago, 575
Ellis Avenue,
Chicago 37, 111.—
Published
bi-monthly;
singl
copies, $1.75; $6.00 per year.

tics reported what many house¬

ers and bondholders, either di¬
rectly or indirectly. In the exec¬
utive

Income

However,
deprived

man.

The

measures

Strauss.

Democrats

the

Trade; Defla¬
Effects of Outlay anc
Taxes;
Economics o

tionary
WASHINGTON, D. C.—There
is

Tariffs

Terms

and

Inn oval;
Growth

Square, Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

BS 69

Volume

189

Number

5858

PICTORIAL

The Commercial and Financial Chronicle

Investment Association of New York

Don

Dillon, Union Securities & Co,; John G. Peterkin, Gregory
Jimmy Thomson, golf pro.; Vincent C. Banker, R. W. Pressprich & Co.

Tansili, Eastman

W. J. Roome,

Sons;

Glore, Forgan & Co.

1IHR

•/' ,///>./. <

/;
E. T. Shean,

Worthington

Lazard Freres & Co.; J. Stuart Lovejoy, Reynolds & Co.

Mayo-Smith,

Blair

President of the

LeMaire,

Ted

Adams

Peck;

John

Montgomery, Smith, Barney
Smith, Barney & Co.

& Co.;

Robert

F. Seebeck,

CoJ; Norman Jaskol, R. W. Pressprich & Co.; Robert Strachan,
Morgan Stanley <£ Co.; Bill Black, Morgan Stanley & Co.

Irwin, L. A. Mat hey &

Dominick & Dominick; John E. Friday, Morgan Stanley & Co.; D. McLanahan,

/v."

;

Co. Incorporated,

Boesel, Jr., Kuhn, Loeb & Co.; Jim Burns, Blyth & Co., Inc.

Association

John

K. Culman, Harriman

Ripley & Co., Inc.; Morgan Harris, White, Weld & Co.; Vincent Banker,
R.

Dick

Wolfe,

Arthur

Wiesenberger &

William

Pollock

Pressprich & Co.

Co.; Mike Garvey, Lehman Brothers;
& Co.; Bob Cannon, Bache & Co.

John

Brennan,

The Commercial and

PICTORIAL

Annual

Worthington

Mayo-Smith,
J.

Barry

Merrill,

Turben

Walston A Co., Inc.; Steve

William

Blair

William

Co. Incorporated; Richard G. Egbert,
Middendorf, Wood, Struthers A Co.

A Co.
(Cleveland); Carl Walston,
Greenberg, Walston A Co., Inc.

Estabrook A

Co.;

Charles

Donald

Cushing,

Burnet

Co.

Coons, Smith, Barney A Co.; John G. Peterkin, Gregory A Sons

Thursday, June 25. 1959

Outing

Peter

Eugene Kelley, Shelby Cullom Davis A Co.; Robert Chittick,
Burr, F. S. Moseley
De Haven A Townsend, Crouter A Bodine; Edward Karlsson, F. S. Moseley A Co.

Moylan, Wilson Sporting Goods Co.; Bill Talbert,
Bank Note Co. (gave exhibition tennis match)

Madden, Freeman A Co.; Paul Hood, Kidder, Peabody A Co.; William Cates, Shields A
Co.;

Financial Chronicle

Columbian

Hampton Frady, Merrill Lynch, Pierce, Fenner A Smith, Inc.; Tom
Williams, Kidder, Peabody A Co.; George Bentley, First Boston Corp.

Alvin

Rural, Hall gar ten A Co.; Tom Unterberg, C. E. Unterberg, Towbin A Co.; Breen Halpin,
Goldman, Sachs A Co.; Bill Gallagher, Vance, Sanders A Co.; John Straton, J. H. Oliphant A Co.

Frederick S. Wonham, G. H.

Walker A Co.;

Todd Goodwin, White,
Hoppin Bros. A Co.

Weld

Co.; Wright

Rumbough,

Volume

189

Number 5858

PICTORIAL

The Commercial and Financial Chronicle

June 19, 1959

B. H.

Charles

Mott,
Mar ache

Investment

William

Young, Kuhn, Loeb A Co.; C. H. Maspero, R. D.
Firat Boston Corporation

Baker,
Weeks A Co.; Herb
A Co.; G. Bruce Leib, Baker,

Marache, Granbery,
Weeks A Co.

of New York—an organization
banking and brokerage firm, limited to

Association

Dave

McMillan,

of young men associated
those under the age of 35

Dumke, Bear, Stearns A Co.; Andrew D. Cornwall, Blair A Co.
Burnham A Co.; Allan Weintraub, Bear, Stearns

G. Haven Abbett, W. E. Hut ton A Co.;

Andrew Peck, Clark, Dodge A Co.; George Howard,
Harris, Upham A Co.

White A Co.; G. H. Bourne,

with

Spencer Trash Co.; E.
Spencer Trash A Co.

investment

Incorporated; Roger Hickey,
A Co.

B. de

Selding,

A Paine; Edwin

McKean Thompson, Joseph Walker A Sons;
Maitland T. Ijams,

John G. Ward, Salomon Bros.

Co.; Norman J. Noble, Abbott, Proctor
L. Beck, Commercial A Financial Chronicle

Irwin J. Robinson, Dreyfus A

Samuel Thorne 3rd, Scudder, Stevens A Clark;
W. C. Langley A Co.

A Hustler; Alan D. Cohn, Wertheim A Co.;

Cjarl M. Loeb, Rhoades A Co.; Pearce D. Smith,

Harold L. Williamson, Jr.

Hemphill, Noyes A Co1

The Commercial and Financial Chronicle

PICTORIAL

Thursday, June 25, 1959

At Tuxedo Club, Tuxedo Park, N. Y.

William

T. Mclntire, R. S. Dickson &

Nunzio, Kidder,

Co., Inc.; Jijm Morrison, Jr., Shearson, Hammill & Co.; Ralph De
Peabody & Co.; Robert H. Austin, Jr., Kidder, Peabody <fi Co.

Tom

Wilkerson,

Walston
Allen <6

Co.,. .Inc.; Chuck Youngblood, White, Weld & Co.;
Company; Fred Whittemore, Morgan Stanley & Co.

Eugene

Oakes,

:£:vX*;-2:-v iKffin

•

/'S-

IliiiBliilii
Harry

Harwood, Kuhn, Loeb & Co.; Joseph O. Rutter,
& Co.; William S. Goedecke, Smith, Barney & Co.

John A. Van
Loeb

Rutter

Douglas J. M. Graham, R. W. Pressprich
Koschembahr, Dominick & Dominick;
•'•"■v.r---Hallgarten & Co.

Raalte, Goldman, Sachs & Co.; Fred Weintz, Goldman, Sachs & Co.; Jim Manges, Kuhn,
Co.; Jim O'Neil, Harriman Ripley & Co., Inc.; Roy M. Goodman, Kuhn, Loeb <£ Co.

Cooke, White, Weld & Co. (New Haven, Conn.); Tom Calhoun, Kidder, Peabody & Co., Robert
Bennett, White, Weld & Co.; Morgan Murray, B. J. Van Ingen & Co., Inc.; Norman Bentley,
R. S. Dickson & Co., Inc.

Gene

Co.; Gottfried Von
Peter Stachelberg,
&

John

Jeff

Hughes,

Carlisle &

D. Mark

Hawkings, Gregory & Sons; H. Hanford Smith, De Coppet
& Doremus; Gordon Leib, De Coppet <fe Doremus

Jacquelin; Bill Clayton, E. F. Hut ton & Company; Mike Barnard,
Eastman Dillon, Union Securities & Co.

Granger, Granger & Co.; John Lelong, New

York Hanseatic
Co., Inc.

W. C. Pitfield &

Corporation;

Archie

MacAlIaster,