Full text of Commercial and Financial Chronicle : June 26, 1958, Vol. 187, No. 5754

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

'cH/G4/y
UN 2
7

ESTABLISHED IS39

ms:

'imSS"""!*

•

Reg. U. S. Pat. Office

Volume 187

Number 5754

New York 7, N.

Y., Thursday, June 26, 1958

Price 50 Cents

a

Copy

EDITORIAL

Our

See It

Author of

Money?

It

the current recession has not
become acute enough
to create
jany great present -risk that we shall
raise the price of
,

means

the

New

,

difficulties

.

its

earlier

days when it

were

ing the price of gold to $35
It

was

to be achieved

by rais¬

an ounce.

with

economic system so

a

The

first

disturbed
in

the

the

change. What we should have
an exchange of goods with
real economic value for yellow metal of which we
have a surplus already—and the
consequences of

its

of

the

currencies

purchasing

/

completed its efforts

U. S. A

.

.

reference ; to

the

lowered

or

price

ulates

of

profoundly
To parry the

though

numerous

of

current

bottom

the

is

not

available to him.

r

forecasters

recession

ruled

out.

be

that

at

this

The

the

hand,

-

.

/
,

.

(

book

"compensated dollar.."/
Maynard Keynes'/
Monetary Reform in which

on

to

He

Means

Fundamentals

ties

any

measure

to

in

1933

in

ery.J As the supply/of, loan funds
relative to the demand has

"The

prosperity," Nobody rec-T
fluctuating currency pari¬
longer. The dual role of

the
j~eouara

Keesing

the tides.

But,

33

as

no

economy

Continued

on

increased,

has

3.5%

cut

the

Dr.

E.

P.

Schmidt

last No¬

Continued

on

37

page

♦An address by Dr. Schmidt at a Symposium by the Board of
Directors, Chamber of Commerce of the United States, Washington,

30

page

from

Reserve requirements of member
banks against their deposits have been cut. Open market

be

can

Reserve

rate

vember to 1%% now.

of payment and as
of value is too important to leave it anchorless
of

Federal

rediscount

means

the whims

Ease

'

gold
stabilized price

to'

money as

It appears necessary once more to call atten¬
tion to the factors which are responsible for cur-

a

recanted

Credit

'

In terms of monetary
policy, the
stage has been set for genuine recov-,

fixed

abandon

parities in lavor of
level.

/

John

proposed

ommends

D.

C., June

13,

1958.

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate
are afforded a complete picture of issues now registered with the SEC and poten¬

securities

DEALERS

tial undertakings in

our

"Securities in Registration"

Section, starting

on

State, Municipal

36.

page

in

and

U. S. Government,
State and

Municipal

STATE

Securities
telephone:

AND

#

MUNICIPAL

BONDS

HAnover 2-3700
the

ON

the FIRST NATIONAL CITY RANK

Burnham
MEMBERS NEW

and

15 BROAD STREET, NEW YORK 5, N. Y.
CABLE: COBUBNM

•

.

•

Dl 4-1400

.

120
Bond Dept.

Net

To

Active

Dealers,

Teletype: NY 1-708

Markets

Banks

Maintained

and

ESTABLISHED

-•

The

Consumers'

We

offer

Canadian

Exchanges

Exchange

Gas

Company

Canada)

...

buy the above rights which
on
July 10, 1958 at the

to

expire

Exchange

Stock

Chase Manhattan
BANK

for

Rights

SECURITIES
Commission Orders Executed On All

New York Stock

York

(Toronto,

1832

Members

New

C2

35 offices from coast to eoast

Brokers

CANADIAN

THE

&

BROADWAY, NEW YORK 5

-•*>

T.L.Watson &Co.
.

Members

TELETYPE NV l-22«2

AM

Distributor

Dealer

OF NEW YORK

Company

REQUEST

Harris, Upham

AND AMERICAN STOCK EXCHANGES

YOKK

BOND DEPARTMENT

ARE NOW AVAILABLE

LETTER

BANK
BOND DEPARTMENT

Bonds and Notes

FIELD REPORT
view

burnham
MONTHLY

Housing Agency

LATEST

CORN EXCHANGE

Underwriter

Public

COPIES OF OUR

CHEMICAL

•

current

Direct. Private

real,

'

Wires

Ottawa,

California

market.
to

Toronto,

Winnipeg,

Mont¬

Calgary

Vancouver, Victoria and Halifax.

'

American

Stock

CANADIAN

Exchange

DEPARTMENT

Teletype NY 1-2270

25 BROAD

FIRST

^OU/thwCdt COMPANY

STREET

NEW YORK 4, N. Y.
J

'

,

.

I

*

~

,

DIRECT

WIRES TO

Municipal Bond

;




BRIDGEPORT

•

PERTH AMBOY

Goodbody

&

NEW YORK

Grporatioti

Co.

MEMBERS NEW YORK STOCK EXCHANGE
115 BROADWAY

Do>u?ao7i Securities

Department

^

MONTREAL AND TORONTO

'

DALLAS

a

reason,

J
J :
)/\
apparently, has>

government,

construction, a
step-up in military and' other pro-,
curement
and
public construction,
and credit easing.
\

,

chosen number of commodities with
Reference to5 the price index of a
chosen number of commodities. He
came

1 NORTH LA SALLE ST.

CHICAGO

Hituk of America

Associate Member of American Stock Exch.

40

■

inflation.

believe

may

For

wage

taken all the major steps it will take
to stimulate recovery for the
nea* *
future.. These .include the stimulation
of
residential

>

a

.

and

the
progressive business executive is striving to strengthen
his business in- every way that is

aftermath
world.

recovery

becoming a high-cost economy and suggests
that could be taken to reduce real
costs, stim-

salespnew products; and restrain

Even

intelligently

with

index

stimulate

to

was

measures

of money,.

power

periodically raised

he

currency.

page

and

war

run

con¬

called-'it-a

a

on

world

Professor Irving Fisher proposed that
the gold contents of the dollar be

Then

expect would be

Continued

have

.

destructive effects of the fluctuations

the United States of America could not
hope to

our

it is

'

monetary authorities have brought about highly liquid
financial system conducive to recovery and expansion.
Dr. i Schmidt refers to Keynes' last
prediction that the

bottom

as

I

which the government is said to

m

spongy

and

.

further debasement of

long
fairly.

'' l'*

1

durables and

power

our

I

...

being well stocked with productive capacity and

sumer

banking and credit; sees "no royal
to undo the effects of credit inflation/' except to

chasing

gold mining interests throughout, the world, and
it is quite -probable that another increase in the
price of gold in terms of dollars would do likewise."
How it could help countries which do not and can:
not produce
gold is far from clear, and certainly

a

financial

watch our future step in
creating purbased solely on credit. Points out certain
misunderstandings said to be held regarding Keynes'
pronouncements, and asseverates there's nothing wrong

ex¬

for them but for the remainder of the world. The
New Deal devaluation
brought a bonanza to the

to

economic

of

money,

way

is, perhaps, not surprising that interests with
holdings in gold mines should be able

gain from such

our

sweat it out and

higher dollar price
gold would solve,many problems/not only,

for

for

cause

deterioration

.

.

our

principles of

.

'

National business group's economist
succinctly surveys
what business can do in an
economy that is described
as

progressive

extensive-

to convince themselves that

Chamber of Commerce of the United States
••

habit of trying to cure the consequences
of too much credit with more credit. Writer
reviews basic

possibility
begin-to consider seriously imitating the
in

the principal

as

the

liquidity and

it is not beyond
that the politicians

Deal

was

and singles out

;

no

dead abroad, and still has advocates in this

pected that wonders

Director, Economic Research

in

May, 1917, that Mr. Keesing, now a retired
banker, had his first Chronicle article published. Today, he looks at what has befallen our
economy

to continue and tq
worsen,
bounds of

would

By EMERSON P. SCHMIDT*

international

country. If the present quieter state of business
were

Speed the Upturn?

(1951)
'

by tinkering with the price of gold. Apparently,

gold, but the issue is by

Whnvey and Inflation, Standardized or Index
(1924); Crisis or Dissolution? (1931); and
Money Muddle

few domestic troubles) could be cured

a

How Can Business

By LEONARD KEESlNG

C

'y It is astounding how tenacious of life the notion
is that international disorders
(and, for that maiter, not

Monetaiy Economy

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

Tele. NY 1-702-3

MONTGOMERY STREET

-

jfLj^JBC^SAN FRANCISCO 20, CALIFORttf*

The Commercial and Financial Chronicle
2

.

.

Thursday, June 26, 1958

.

(2854)

The Security

Brokers, Dealers only

For Banks,

Ib the investment

experienced trading

.

.

-,y

better executions,
faster
for yoa.

mean

.

Corporation

it

120 Broadway,
WOrth 4-2300
BOSTON

which

Cities

a

bright

shares

stable,
p endable
and expansive.
e

Such

Specialists in

George L.

Bartlett

of

Stock
Stock

120

SCRIP

Brooklyn Union Gas

its

miles containing 3.7
It

much

lyn,

the

available, 5%.
It
will be observed
industrial load

Commonwealth Natural Gas

is

matured

well

much industry

five

STRADER and COMPANY, Inc.

small and
no

TWX LY 77
City

light tor what is
territory with

The

reason is

that

There

light Junes.

in

is

lC™ti™.on industrial
of hugh
in
the big
•

*

plants

LYNCHBURG, VA.

the big industrial
Howevei, this

in

as
as,

centers^ inland.
makes for

far greater degree of

a

stability than is possessed by com-

such centers.
to be sought

panies serving

Growth

had

TTninn

PENSION FUNDS

rfs

done

witn
with

INVESTMENT TRUSTS

140%

COMPANIES

sibilities through the sale of

worthy

of

Options

are

investigation.

A

fhi^nmnlnv^

remaiKabie
remarkable

revenues

since

have

of

our

firm

'

will be

glad to explain the

subject
'

to

those

who

are

by more than
income just about

$2.20

a

share indicated by lastest

cent

prices, the current dividend
an annual return of 5.1%—

yields

Ask for Booklet on Hotv to Use

Filer, Schmidts Co.
&

Call

Brokers

&

Dealers Assn., Inc.

BArclay 7-6100




used

was

is being

bonds
120 Broadway, N. Y. 5

.

con¬

,

Over

and

Call

share

from

in

0004g to

the

18

204

y'

■

-

10K filed

Tokyo, Japan
Brokers

man¬

:

•

$39

equalled

I

v

A

and

'm
ganin, Lohn, Midohm-aveBll

stocked.

hundreds

marks -are

was

sold.

Proceeds

in

amortized

resulting from

over

period

a

of

95.6%

asset and liability

position

throush and with British DriverHarris
98%
of Etablisse-

strong. With no bonds,

owns

Driver-Harris

t

d

e

tTltaliann

9Q%

. Irish

98%

and

YEARS

millions

(In

Driver Harris

$12.4

$16.3

4.1

17.9

10.9

4.7

15.7

against
million

'

-

Opportunities Unlimited
IN JAPAN
Write

for

our

Monthly Stock

Digest, and our other reports
that give you a pretty clear
picture of the Japanese
economy as a

whole.

Nomura Securities Co.,
61 Broadway, New

Telephone:
This

is not

orders

for

Ltd.

York 6, N. Y.

BOwling Green 9-0187-

an

or solicitation foi
particular securities

offer

any

5.3

19.9

16.3

5.51
6.0

current liabilities of $1.2

21.8

13.8

shows:

total current assets of $4.7 million

$3.9

13.8

14.5

Canadian and Domestic

S.

U.

policy.

currently

Driver-Harris

Consolidated

Dr.-Harris

liquidity

high

British
U.S. Dr.-Harris

Investment Securities

Harris has persistently followed a

3957

TO

'

■

only 89,170 shares of com¬
stock
outstanding, Driver-,

mon

dollars)

of

preferred,

any

with

Driver Harris

1952

is

Driver-Harris

of

senior securities, with no
of bank or insurance company loans,
or

ancl yu% of lnsh Driver-Hai ris.
SALES

Dealers

of

10K.

current

The

British D r i v e r - H a r r i s, and

SoCi

being
60

Necessity,

of

Certificates

m-

under

materials

defense

of

to Form
owns

Of

the

company's
^

j g 5 ?

consolidated

cin^novo

approximately

IS>5

of

S3 818 000

Italy, and Spain.
i"
equity abroad is carried
^1^?°mpan<s
°r

rph:a

a •?

for

in

strongest

.,19.9

'

six

the

years.

current

ratio

liability

current

to

between 9:1 to 6:1.

fluctuates
;

past

Driver-Harris's

British
asset

ratio,

3.85

a

the

Consolidated net working

capi¬

tal:

S.

U.

Driver-Harris—
Dr.-Harris

British

$3,508,176
2,250,091;

nommal amount of $283,087.71.
NET

WORTH

1953

(In

GROWTH
TO

millions

of

$5,758,267
$63.67

YEARS

1957

Per

dollars)

share

With

current market price

a

Over-the-Counter

Quotation Services
for 44 Years

o|

Consoli¬

$45-$47,

dated
U.S.

British

Dr.-Har.

Dr.-Har.

Consoli¬ Net Worth
dated

$4.7

$1.8

$6.5

5.1

were

largely to retire $18 million

of short-term debt

tion

rountriPq

Driver.Harris

Underwriters—Distributors,

trade_ months, "was substantially amor¬
50 or tized at Dec. 31, 1957," according

and

registered

for the produc¬

facilities acquired

Driver-Harris's

pa{ents

of

New York 5, N. T.

is

repair

and

ing of this management. Two mil¬
lion dollars of emergency plant

chromax, Karma, Advance, Manventory

INC.
37 Wall Street,

up-to-the-minute housekeep¬

the

Nichrome!

Ineonel> stainless steel,

Burns Bros. & Denton

vyy

depreciation
is also fiscal "testimony to

charges

Nkkel

D

Bankers

N. Y. 6 COrtlandt 7-5680

larger than the total

freqUently pur_
and nickel alloys,

Grade

maintenance

for

most

Monel

Investment

&

111 Broadway,

per

sizes

nickel

of

Yamaichi Securities Co., Ltd.

$3.6 million'
$3.7 million

Additions at cost:

has

York, Ino.

Affiliate

$3.1 million

Depreciation

New

of

$3.4 million

__,

pairs $40.

chased

—

write

Securities Company

.

excellent

the

of

repairs:

self-cairied

are

or

Yamaichi

retained

share has been

per

Maintenance and

the

wire

different

-For current information

past

Retirements:

spectrum of industry.

500

:

paid

workings

of'ma'nT

some
$21
million.
amortized on a 10year
basis from July
1,
1952.
Since 1950, gross property account
increased some $40 million after
retiring $14 million of obsolete
properties. Funded debt was up
$16 million. In May, 1958, another
$22
million
of
first
mortgage

pliances
This

Stock Options

Put

per

Examination of Form

;

the'm-osDect^1"31 ^
Cost of converting customers' ap-

Members

STOCKS:

$51.25

with the SEC exhibits the internal

and tradealloys are

'

for

rejoicing when a
split
in
1952
was
ordered.
Neither
did
a
regular
dividend rate that rose gradually
from 800 a share to the rate of
cause

two-for-one

All
this,
of
course,
entailed
considerable capital expenditures,

Interested.

.

JAPANESE

8.63

$50

earnings

purposes.

the

nickel
for
meeting

high

Nichrome.

in-

1946

net

and

success.
success

payments dim their spirits. At rerepresentative

yy

approximate
net

;

c

.

10.24

V

by the company for working capi¬
tal,
new
facility and i research

only

Nichrome

patented

famous

orG

in

quadrupled. Common stock earnings rose 165% to a 1957 peak of
$2.92 a share. Stockholders also
had

The additional income pos¬

Call

and

Operating
creased

and

with
89,170
is the world's

common

the whole

concentra*

such

,

Put

the

-

$4,562 "t

$1,441 y

the

10.63

v

share, additions at cost $42
retirements $85 per
resistance alloys are measured_.by per shace,
share, and maintenance and re¬
^he performance standards of

the

that

industry is relatively

most of the

INSURANCE

;

,

'

;.-

It is
clear that Driver-Harris
Usage of these special purpose,
Gas Company, with itself. At the
patented • nickel alloys in wire facilities in the United States are
end of 1957 it had 1,029,000 cus- j0rm is
widespread in the entire in tiptop shape. Of the current
tomers
Residential sales m 1957
balance
sheet
figure of
appliance, automotive, construc- 1 9 5 7
constituted 71% of the company s
total' plant and
Hon, and instrument industries, $5,821,1011 for
revenues
commercial load 16%,
Fifty per cent of sales comes from equipment in the U. S., more than
industrial on a firm basis 8% and
appiiance industry, 20% defense, 63% is entirely new in the past
mterruptible, i.e. when
gas
is the remaining sales scattered over six years. That the total figure-

a

York

and all of

of

three

—

Boroughs of New York City—hav-

Life Insurance Co. of Va.

Neto

7.67

$3,121

exacting specifications required of
electrical, heat and corrosion resistant alloys: all other electrical

early in 1957 consolidated the
Kings County Lighting Company
and the New York & Richmond

American Furniture

to

WOrld

ing

Bassett Furniture Industries

Wire

million people.

Queens

of

Richmond

Trading Interest In

Private

347

8.52

-

946

six years, $12.55 has
in dividends to the
share holders and approximately

company

and

debt

other patented

131

marked

practically all of Brook-

covers

•

■

Exchange
Exchange

—5-2527—

J' 420

-

amortization:

Harris's

BROADWAY, NEW YORK 5

LD 39

911

758
y

branch offices

6.51

580

electronic,

and income-conscious investor.

TEL. REctor 2-7815

•

252

"
.

electrical,
and
heat agement which Driver-Harris has
Company. I like it because it has treating industries,
enjoyed for many years. In the
all
these
qualities as well as
With manufacturing plants
in past six years in the U. S. alone:
several others which commend it Harrison, N. J., England, Ireland,
Depreciation and
Y ^
to
the
careful, forward-looking France, Italy and Spain, Driver-

McpONNELL&fO.
York

315

658

leading maker of the largest line

Brooklyn Union Gas has as its
core
a
territory of
175 square

American

631

been

of nickel-chromium alloys for

stock

a

is that of the

Since 1917

New

121
283

our

Snare

Earnings

«^■-$6.72

$598"

$121

474

$38

funded

no

d

•

*

Driver-Harris

be

should

per

Earnings.

459 y. r".:

•

.

in

ahead.
This 59-year-old

dated

Dr.-Har.

/

$477

y

F. PALMER WEBER

can

Mobile, Ala.
Direct wires to

t

dated

Consoli-

Briti&h

u. s.
Dr.-Har.

45

page

New Orleans, La. - Birmingham, Ala.

Consoli- '

'•/,

Partner, Morris Cohon & Co.
New York City
'M'f,

strong,

Members

on

NY 1-1557

HAnover 2-0700

1957

1903 TO

YEARS

(000's omitted)

solidated

serves

and

see

It

&

and

lighting

for

gas

American Stock Exchange

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

Of

essential

need

Members New York Stock Exchange

par

of the story Prior to the introducJ10" 01 natural gas, the manupictured vagaries. When electricity
gas business was subject
to many

Continued

future

RIGHTS

$10

of

company

an

FRANCISCO

to Principal

Wires

Private

CHICAGO
SAN

•

Steiner, Rouse & Co.
Members

buy is one of
a

PalmerWeb¬

F.

—

ber, Partner, Morris Cohon &
Co., New York City. (Page 2)

NET EARNINGS

right stock to

New York 5
Teletype NY 1-40

•

PHILADELPHIA

Driver-Harris

Bought—Sold—Quoted

York

New

McKinnon,
(Page 2)

City

projected itself into the cooking
field, it seemed that the days of
gas were numbered. But not so;

The

occur.

Exchange

shares

2,163,410

replaced

the

in

is

&

son

at
probably around $71

This, however, is less than half

un-

economy

Member

Stock

many

seems

adjust¬

ments-

1920

of

value.

abound

that

when

Associate

of

wise to be
exceptionally circumspect about
buying stocks, because of the risks

New Yoiit Hanseatic

American

of

days

these

In

certainties,

Established

intended to be, nor
discussed.)

Bartlett,

construction has been spent by
this time. Common stock consists

Brooklyn Union Gas Company

The

.

.

.

Exchanges

and other leading

time

Partner in Charge
Investment Research, Thom¬

L.

million, assuming that about half
of the company's 1958 budget for

Members: New York Stock Exchange

Complete OTC service

4.

this

Charge of Investment

Partner in

Research, Thomson & McKinnon
New York City

and

3. Broad contacts

Brooklyn Union Gas Co.—George

construction outlays. Total debt

L. BARTLETT

GEORGE

department

Louisiana Securities

particular security.

a

Alabama &

and

Their Selections

they to be regarded, as an offer to sell the securities

are

system
2. Large,

for favoring

(The articles contained in this formn are not

wire

private

Nationwide

1.

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

participate and give their reasons

Because Our...

Week's

This

Forum Participants

A continuous forum in which,

Try "HANSEATIC"
"

I Like Best

2.1

7.2

$74

7.6
8.7

98

2.8

6.5

9.3
10.3

116

an

essential in-f

'

National Quotation Bureau

dividend

105

3.5

position in

dustry, with a $2 basic

rate, Driver-Harris is the security

86

2.2

6.0

lished

estab¬

securely

a

Incorporated
•

81

2.6

5.3

6.7

per Share

"

with

♦

I

like

best.

American

It

Stock

is

listed

on

Exchange.

..

the

Established, 1913

46 Front Street
CHICAGO

NewYork4,N.Y.
BAN

FRANCIBOO*

Volume 187

Number

5754

.

.

The Commercial and

.

Financial Chronicle

(2855)

Redemption Restrictions
In Utility Bonds
;

Chairman, Securities and Exchange Commission
Washington, D C.
^ "T
''

^

Voicing

-

'

about

Our

'

'

"

•

"

"

"

** '

'

!

"

-

—Emerson

>

•

essential

made

the

on

to

subject by Wharton School

study

"r;

Any issue of utility debt
rities

which

is

to

be

sold

secu¬

to

the

general public must be registered
with the Securities and

Exchange

'Commission;
pursuant

the

to

in

the

terms of

:

of

and

New York State

the

issue.

The "Golden

<

early history of corporate
financing* ;it was common to

How Does

omit any provision for calling the
bonds prior , to maturity to avoid

1933,

that

since

a

lave

.'holding or
AS u b si d iary

sion.

corpo ration

with

-'which

is

to

the

Public

Holding Com-

i

e c e

firmative
•

proval

lorder

ap-

in
of

Edward N.

Gadsby

an

that

Thus, the

agency.

Securities and Exchange Commis¬
sion is in a unique position to ob¬
trends and

serve

policies
bond

and

long-term

One of such
is

of

the

in

utility

note

issues.

developments which

interest

under

developments in

fashions

and

to

1933

the

Act

a

very
important
under the 1935 Act

Commission

and

Food

which

is

consideration

an

agreement not to refund a bond
issue at a lower rate of interest
a

definite period of time, usu¬
years, or else not to re¬

ally five
deem

it

all

at

during

that time.

No specific indication

4

to

attention

our

to

as

has

come

the

origin
of this practice.
As a matter of
fact, it has been extended to some
industrial and foreign government
issues.
It is probable, however,
that some institutional investors
have taken the position that they
would like to have such a freeze

included

indenture

the

in

in

or¬

der that

they will not be required
to change their portfolio during
whatever period is agreed upon.

We have also received indications
that

underwriters

certain

sometimes

as

acting

financial consultants

have developed more or less of

a

practice of advising utilities who
their

seek

advice

about to make

securities

to

an

and

who

are

offering of senior

include

such

a

pro-

;

address

Gadsby before
England Public
Utilities Commissioners, Rockland, Maine,
*An

Conference

June

18,

of

by

the

issues

call

in*; 1941

made

we

Mr.

New

Agriculture—Harry

Losses of Life and of

___

U.

_

Gerald Loeb
As

Suggests

first

revived

connection

Corp., at

INDUSTRIES
15

in

with

20

to

J-F. Reilly&Co.,Inc.

27

Members

Salt Lake City Stock Exch.
Spokane Stock Exchange

28

1

Manufacturing Chemists'

not

-

too

be

far

State Bankers

m

Pubco Pet.
^

•

General Gas
New Facilities

on

^
*

Alaska Oil & Mineral
It

(Editorial)

Cover-

.

and

Insurance

Business

Stocks

1

Man's Bookshelf

Coming Events

in

the

Dealer-Broker

48

Investment

Field__

rates

this
in

illustrated

Securities

Commission has

Investment

8

Indications
Mutual

of

Current

bond

and

no

24

Bargeron

10

Business Activity_____

46

Funds

44

News About Banks and Bankers

32

the
Observations—A.

Exchange

jurisdiction in

this respect over indenture provi¬
sions of manufacturing companies

.

Our

Reporter

Our

Utility

utility companies which are
subject to the Holding Com¬
pany Act.
As to utilities which

Railroad

Now

in

47

Registration

1(b) of the Act

Securities

Security

the

interest

of

consumers

of

Salesman's

electricity or gas are or may be
adversely affected by lack of econ¬
omies in the raising of capital, and
machinery is thereafter set up

Continued

on

page

35

The Market

.

.

.

State

The

of

and

-Column

•

not

Published

.,

Trade

Corner

Alaska Oil & Minerals

27

You—By Wallace Streete

and

J

Refining

2

Industry...

4

McLean Industries

48

available
Twice

Commonwealth Oil

16

You

and

this

Yonkers

week.

Weekly

Syntex Corporation*

Company

FINANCIAL CHRONICLE

PREFERRED STOCKS

specialized in

as second-class matter Febru25, 1942, at the post office at Nev
York, N. Y., under the Act of March 8, 1879

„

Reg
WILLIAM

U

Centered

ary

~

S

Patent

DANA

B.

Raceway Inc.

Copyright 1958 by William B. Dana

The COMMERCIAL and

For many years we

Dallas

42

—

The Security I Like Best-

Washington

Los Angeles

Chicago

Sabre-Pinon

38

Offerings

declares that the national interest
and

Direct Wires to
San Francisco

47

are

Section

Teletype NY 1-1825 & 1-4844

*

Securities

Prospective

inc.

40 Exchange Place, N. Y.

33

Report

Securities

Securities

subject to the 1935 Act, how¬
ever,
the situation is somewhat

mackie,

4

of

not

&

HA 2-9000

Philadelphia

May

Governments

on

Reporter's

Public

Wilfred

Singer, Bean

8

Einzig: "British Bank Rate at 5%"

point

by

Recommendations

From Washington Ahead of
the News—Carlisle

forthcoming

at

Seismograph Service Corp.

31

by

accompanying chart.

different.

Pacific Uranium

Regular Features
See

distant future.

well

HEnderson 4-8504

Teletype: JCY 1160

L-O-F Glass Fibers

1957,

issue

the fluctuations

interest

Exchange PI., Jersey City

DIgby 4-4970

a

recall

or

♦

22

were

might

The

HYCON MFG.

22

t

As We

May,

CHEMICAL

>

is

Students Adopt Securities
Business

.

have

an

fiscal relief would be

the

HYDROCARBON

Country

\ '
Chemist Manufacturers to
Spend $2.5 Billion
in 1958-1959

time when bond inter¬
relatively high, and
in fact were at a point where the
thoughtful analyst could very
easily conclude that some form of

It

ADVANCE

14

g

York State Electric and Gas

est rates

in

13

A. Bullis

Crandall Melvin, President of New
York
Association

for

to

seems

4-6551

BELLANCA CORP.

of non-call provisions

provision

WifitehaQ

DIXON CHEMICAL

12

_

Property from Fires—Roger W. Babson__

Career

a

Bank

in

_

_

trend

This

New

__

Cobleigh_

Resurgence of Non-Call Provisions

been

Securities'Dept.

Moise_'_ 11

Industry—Donovan Wilmot

McClure Named Chairman of
Association

a

issues
submitted
competitive bidding.

1958.

have

_

L.

The Global War Against
Disease—John T. Connor___

on

resurgence
in
utility

obsoletes!

<>6

Exchange

long-term his¬
away from restric¬
redemption. Despite this
trend, we have seen in the recent
period of rising interest rates, a
torical

Obsolete

Chemical Company
Planning for the Necessary Capital Funds
—L. C. Perkinson

a

registered

your

,

jq

Of course, the fact that
callable on some

been

on

WALL STREET, NEW YORK

Telephone:

issue is

has

tions

Industry and

The American Aluminum

terms and for some purposes is
only part of the story. We are here
concerned
only with callability
for refunding and at no more than
a
reasonable
premium, if any.
Nevertheless, it seems clear that

there

;

99

Chemical Company Raise
Capital?—Hans Stauffer 16

a

provi¬

issues

bond

Polymers—Ira

'

is the current

tendency on the part of some util¬
ities to include among the provi¬
sions of the corporate indenture

for

bond

some

the Securities and

bond

a

af-

v e

of

callable.

Act of

1935 must also
'?r

most

and

'

-

Financial Center—Richard S.
Perkins

What Must Be Done for
the Defense of Our
—Gordon Gray

Commission for the years 1937 to
1941 and found that 97% of the
230 issues
then
marketed
were

Utility

?p any

Back

atudy

sub-

ject

1910

contained

as

'

7

Sixties"—Lewis L. Schellbach

Ill the
bond

ng has noted, however, in
his
Financial !Policy of Corporations

that such

securities of

Chemicals: Polysyllables

bid

Butler...9

;The Effects of Automation—John K.
Hodnette.

.

:Act

F..

;}• Investment Aspects of the Paper Industry—William

payment of further interest. Dew-

Securities

^ Immediate and
Longer Term Economic Outlook
for Our Nation—William

us

.

6

__

■'>. ;j;vj

vision

5

indiscretion to. the winds

and let

3

v-.Gwwth oi Consumer Credit
and. Legislation in New York State
—J. Andrew
Painter...

being
University 'of

at

._

,

hew

Pennsylvania,

Throw

-

Trust Developments in
New York State—Ernest
Rt Keiter

or

redemption premium and refers

Utility Bonds

Let's Export
Freedom—Kenneth R. Miller.

.

make such issues lessiJattractrve \o~ under*
investing public.; Defines successful placement and

or

INDISCREET

Cover

in

Ammonia: A Fertile Field for
the Future—R. P.
Westerhoff__

capital. He answers complaints-:
by citing studies showing redemption freezer does not increase

cost of money

Schmidt

Redemption Restrictions
-r-Edward N. Gadsby

warning that "if we don't hang together,
we
may hang separately^
Mr. Gadsby scores the point that
Federal and State agencies protect
utility consumers against■?.
are

P.

-f

resurgence;

unreasonable interest costs and that refundable*
to achieve economies in
raising

__Cover

•

and concludes with

writers

Monetary Economy—Leonard
Keesing

How Can Business
Speed the Upturn?

•

of; non-call provisions in
utility issues, recently re-appointed SEC: Chairman invites
state regulatory commissions to collaborate in a
united front
against unreasonable redemption restrictions m utility bonds—
concern

reasonable

Articles and News

>y

By EDW ARD N. GADSBY*

■*;;

index

\

...

Office

COMPANY, Publishers

*Prospectus

on

request

'
.

25

Spencer Trask & Co.
Members New York Stock
Exchange

25 BROAD

Nashville

Boston
,




Place,

REctor

Subscription Rates

New York 7, N. Y.

2-9570

to

9576

Subscriptions
„

„

HERBERT D. SEIBERT, Editor &

,

Publisher

WILLIAM DANA SEIBERT, President

Possessions,
Dominion

In

Union,

Chicago

Schenectady

Glens Falls

Worcester

States,

and

$65.00

U.

Members
per

year,

of

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

8
ol

ii

Every Thursday
(general news and advertiaing issue.i and every Monday (complete statistical issue — market quotation
records,

state

corporation

and

Other

Chicago

city

news,

Offices:

3,

Ilk

135

news,

bank

clearings

etc.)

'

South

(Telephone

La

STate

Salle

St

2-0613)

_

.

_

and

_

Per
rate

foreign
must be

_

.

WHitehall
...

Quotatioi.

year.

Note—On
the

..

Record — Monthlj
(Foreign Postage extra.)

account

oi

the

fluctuations

of

in

New

York

funds.

3-3960

Teletype NY 1-4040 & 4041
Direct

Wires

to

1j

exchange
remittances
foi
subscription.®
and
advrfisementa
made

INCORPORATED

39 BROADWAY, NEW YORK $

Publications
.

W» V. FRANKEl & CO.

year

Thursday, June 26, 1958
Other

TELETYPE NY 1-5

United

Territories

Pan-American

Other

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300
Albany

Park

PHILADELPHIA

SALT LAKE CITY

3

Financial Chronicle

The Commercial and

.

.

Thuisday, June 26, 1958

.

(2856)

4

aid

business.

and

the

of

well-educated in
With the

and

investors
finance

press

are-well-versed

Observations

a

IF.
The

their compa¬

but with all this, for many
the Annual Meeting
constitutes Examination Day for
facts hidden or unexplained in the

Which Are to Be Protected?
Education

of

the

investor

constitutes

re¬

a

unfair heads-

you-win-tails-I-lose arrangement.
privilege of

The valuable one-way

fication of the

thus

of

the

call

situa¬
again,
brought to the

price

is

tion

forei by: SEC.
C h a irman

Gadsby's fulllength discus¬
sion
of the

forded

no

opportunity whatever to
structive suggestions or criticism,
a subsequent rise in
but not for a half hour or more.
rates, v nor

interest

subject in an
address before

the

against

borrower's

protection

equivalent protection via an
option to pay a penalty should he
want to terminate the contract by

no

of the
New England
States
Public

ence^

A.

wuticu

Utilities Com-

'

may

being paid off at 97 instead of at

;

(Full text * an 103 premium.
In the face of
this prevalent
is published in this issue of the
"Chronicle" on page 3.) The call inequitable arrangement, the SEC
missioners on June 18.

feature of

;

bonds, which gives the

insists

privilege to the issuer to retire
them before maturity, has become
increasingly prevalent since 1910
with the very great majority of

on

putting

who

those

try

the defensive
arrange for a

on

to

Strict limitation

financial granted

deterioration. He is likewise given

Confer¬

the

mouth, owning only 5 or 10 shares,
gets up, shakes his finger at the
chairman, and tells management
how to run the business about
which he knows very little. The
chairman usually gives him the
floor for too long a time, in order

from

gain

binding two-way contract, by clas¬
sifying
such
protection
as
a
"freeze" against refunding provi¬
sions.
The indictment of "non-

of the time

to each stockholder would
of the trouble. Unless

most

cure

is going on the rocks,
all I want in 5 minutes.
Complimenting the management
on good results is always in order;
as
is
inquiring about a dividend
increase or a stock split if toe
earnings and price warrant it.
Up to now the meeting has been
too much a one man show. Why

a

I

company

can

not

say

others

give

is

it

chance;

a

meant for all of us.

Suggestions
being call¬
On the matter of lunch at meet¬
greatly redeemability" was adopted as the
accelerated during the
1930's Commission's official position in ings, I feel that some are overdo¬
when declining interest rates with utilities financing in a Statement ing it, while others are giving lit¬
tle or nothing.
of Policy, Feb. 16, 1956.
Something in-be¬
the oversupply of investible funds
tween like a box sandwich lunch
reduced the bargaining power of
Typical of discussions of this
is best, will save some companies
lenders".
'«''
yj'_\ v
question, Chairman Gadsby de¬
without
making others
considerable
attention
to money
The recent trend back to easier votes
look cheap.
A stockholder is a
money conditions and the
con¬ the determination of a "reason¬
guest and should be treated in a
sequent return to this provision's able" redemption premium to be
homelike manner (sandwiches and
favoring of the issuer and penal¬ paid by the issuer in the event of
coffee, tea or milk). A few prod¬
izing of the buying-lender, should call. But the simple bare fact that
uct samples are also in order—not
currently intensify the investor's he will only exercise his option in
the event that his entire trans¬ shopping bags full. These are good
concern.
'
advertising and public relations
penalty, will
Chairman Gadsby, in decrying action,' " including
gestures adding to goodwill.
yield a net advantage to him,
attempts to free the buyer from
With stock ownership gaining
forestalls the possibility of any
this feature favoring the seller,
by the millions, it will soon be
stresses the alleged harm done to real penalty on the borrower. His
necessary for some companies to
public,, utility consumers by "un¬ possession of the option guar¬ hire Madison Square Garden, to
reasonable" interest costs, and the antees that the penalty will be take care of the crowds. Give
alleged obligation of the Com¬ injected on the holder whenever them a show, lunch and a limited
*
mission and the State regulatory it is exercised.
time to talk — a carnival style
Surely then it must occasion
authorities to protect them.
business
meeting.
Hope to
be
But any such concept to con¬ surprise and dismay to find our around when it
happens.
Federal regulatory agency which
centrate on the interests of the
GEORGE MEYER
is committed to protect the inves¬
consumer
surely contradicts the
6911 Yellowstone Blvd.,
very raison d'etre of the Secu¬ tor, nevertheless. persistently en¬
Forest Hills 75, N. Y.
rities and Exchange Commission, dorsing this investor - sabotaging
issues

marketed

This trend

able.

now

Menu

became

.

,

as

well

as

the philosophy

of the

device.

well

the

THE

ON

DEAR MR.
I

as

realized.

consumer.

on

cannot

your

resist

the

temptation

to

The

write

ings of 6 of which, being held in
New York, I can and do attend.
First thing to consider is that
rate borrower is given the valuable
option to call off "the deal" before there are • practically 9 million
the
specified termination date, stockholders, many of them strictly
should

be

arrange¬

ment whereunder only the corpo¬

York

New

The

Society

of

Se¬

Analysts will celebrate its
at its Sixth Annual

curity

21st birthday

Outing

Friday, June 27 at the

on

Westchester
N.

Country

Club,

Rye

Y., according to Gerald L. Wil-

stead

& Hallgarten &

the

of

man

Co., Chair¬

Outing

Society's

Committee.

their

Opportunity for You:

all statistics for the

on

activities

by

trading

on

unlisted NYSSA "Stock

own

Commercial & Financial

Chronicles^ 1914-1952

HOUSTON,
Pollok
been

Bank

Available in New York City—Write or




>/

\

Edwin L. Beck

e/o Chronicle, 25 Park PL N. Y. 7

&

of

Tex.

Fosdick

formed

Officers
man,

-

also

in

line

for

broaden

should further

which

contracts,

pay

VV-W:

power.

available purchasing

'■

:

appliance field, manufacturers state, is showing some
an increased
demand, stemming from stepped up

The

evidence-of

building, which if sustained, would play an im¬
portant role in setting business on a more even keel.
This week the steel industry has begun to show some leveling
activity in home

consecutive weeks of rising pro¬
situation this week, "Steel";
magazine observed that "July will probably be the lowest pro¬
duction month of the second half, but it's beginning to look less
ominous." As one steelman put it according to this trade paper:
"I've been surprised by the number of Orders that have stuck
after I've made it clear that we couldn't possibly ship before July.."
This trade weekly further noted that vacations will slow steel
consumption and output next month even if June hedging does
not impair July sales, but there is hope that production will not

off in steel output after seven

Commenting

duction.

the steel

on

drop more than 10%.
The number of idled

workers getting unemployment compen¬

the week ended June 7 declined again as many
workers exhausted their state benefit periods.
The United States Department of Labor reported the 10,000nian decline in benefit recipients — the eighth successive weekly

sation

during

drop—brought total insured unemployed to 2,817,600.
The latest decline, however, was much smaller than the 27,400
persons who stopped getting benefits in eight larger states because
they reached the maximum period of insurance.
Although six states already have signed up for temporary
Federal aid for extending benefits to these idled workers, the
AFL-CIO estimated
recently only about one-fifth of those in
this category would get more jobless pay soon under the anti¬
>

recession legislation.

Employment Security
reported that workers filing new claims for jobless pay rose
slightly during the week ended June 14. The 10,600 increase sent
new claims to 332,300, with 21 states sharing in the rise.
A year
earlier, initial claims declined by 3,700 to a total of 214,400.
The

Labor

Department's

Bureau

The annual rate of personal

income

of

rose

$1,200,000,000 in May

$344,300,000,000, according to the United States Department of
Commerce.
This was only fractionally below the peak level of
last summer. For the first time since September total wage and
to

salary disbursements rose. Higher farm income and unemploy¬
ment compensation helped boost the May level.
There was a

slight rise in proprietary and rental incomes, but dividends and
Increased pay for Government civilian

interest remained, steady.

employees is expected to help boost personal income somewhat
in the coming months.
In the steel industry, "Big Steel" has put steel labor on the

"The

spot,

national metalworking weekly, declared

Iron Age,"

Wednesday of this week.

on

It

added

that United

McDonald,

States

-

Steel Corp. has, in effect, told

President of the United Steelworkers, that it
prices if the steel union foregoes its scheduled
magazine

metalworking

stated

United States Steel's statement in which it
to

that this is the gist of
said, "It must be obvious

that the matter of price adjustment would not even
under present economic circumstances if it were not for

anyone

come

up

the very substantial employment cost increase we now
This trade journal further noted that the statement

face."
will have

"smoking out" Mr. McDonald, who is on record to
the effect that he will "stand pat" and let wage and fringe bene¬
fits due him under his three-year contracts with steel firms take
the

effect

effect
more

on

of

July 1

as

scheduled. These increases will cost the industry
including a 5-cent cost-of-living

than 20 cents an hour, not

increase effective last Jan. 1.
United

States Steel also has

turned the tables on Sen. Estes

according to "The Iron Age." "This critic
of steel pricing policies," declared this trade weekly, "has con¬
sistently soft-pedaled the impact of wage costs on the steel price
structure.
Between now and July 1 the Senator will have to
aim his barbs at steel labor—something he does not want to do¬
or retreat to a 'prepared position.'
Chances are he'll claim credit
price boost postponement. Actually, Sen. Kefauver's re¬
the steel price picture."
trade weekly stated flatly there will be no steel price
boost on July 1. It added, the odds overwhelmingly favor one at
any time between July 2 and September. It stands to reason that
the steel companies cannot afford to absorb the substantial wage
cost increases that are scheduled to take effect on July 1.
Steel
for

the

This

Fosdick Co. Formed
Beautifully Bound Set of

^

Other workers in private industry
increases, contained in written union

added stimulus to business.

are

marks have little bearing on

Exchange."

Eddleman, Pollok &

"FOR SALE"

J

an

Kefauver of Tennessee,

Although the analysts will turn
their backs

market

Phone REctor 2-9570

expand

The

day, they will keep in touch with

Here Is A Special

civilian

increases

pay

July 1 wage increase.

Celebrate 21st Year

MAY:

interesting column
"Heckling the Hecklers," and
read

you of my experience and
opinions as a stockholder attend¬
Heads You Win; Tails I Lose
ing meetings over the years. Now
The basic gross unfairness of 72 years old and retired, I own
the principle of the call feature stock in 15 companies, the meet¬
as

upward in May,
scheduled for both military and
workers, retroactive to the first of the year, which will
consumer purchasing power to that extent and serve as
Personal income has turned

economy.

our

coupled With

1958

Security Analysts to

HECKLERS

(a communication)

Holding Company Act specifically

investor

in

will not raise steel

,

promulgates the concern of the
national public interest with the

21.

June

of stability has become apparent

In recent weeks some measure

Dave

regulatory statutes, which have
been geared to the protection of
the
investor,
presumably
in¬
cluding the buyer of bonds. Even
in the sphere of the utilities, the
Preamble of the Public Utility

J

However, it does
heckling when
a
loud

•welching" on the contract can
be freely exercised by the
borrower if a change in conditions
make this advantageous to him.
to keep the peace.
Such altered circumstances
I recommend that no one should
usually take the form of a change
take more than 5 minutes. Com¬
in- pervailing
interest rates, or ments or a
"speech" should be
perhaps an improvement in its written and submitted to the}
financial strength. On the other
chairman
to
be
read by him.
hand, the buying-investor is af¬ Stockholders
should
offer con¬

various phases

Index

Production

Business Failures

fact finding.

become

most

Auto

and Industry

Price

formation is not
as

garding bond indenture provi¬
sions, including the call feature,
is called for
The need for clari¬

Trade

Commodity Price Index
Food

To ask for this in¬
so much heckling

annual report,

Retail

State of Trade

stockholders

CONSUMERS OR BONDHOLDERS—

Production

Electric Output

Carloadings

nies;

By A. WILFRED MAY

Steel

number

good

on

the
are

with

—

Eddleman,

Co.,

Inc.,

has

in

the

offices

Southwest Building.

Richard

N.

Eddle¬

President; Lewis W. Pollok,

Jr., Vice-President and Treasurer,
and John Fosdick,
and Secretary.

All

Vice-President
are

Eddleman-Pollok Co.

partners in

unless steel labor decides to pass up
When it comes, the price
$5.50 per ton on a selective basis.
This is about one-half the total of direct and indirect cost in¬
creases that would
result from the scheduled pay hike.
Dave McDonald, "The Iron Age" reported, is in one of the

prices

are

bound to go

up

what it has coming under its contracts.
boost

will

amount

to

about

contract after a
tough time win¬
President of the steel union against a com¬

toughest spots of his labor career. He won his
54-day strike in 1956. In the meantime he had a

ning re-election as

parative unknown in the steel labor movement.
United States Steel got in another lick at Mr. McDonald when
it mentioned the matter of competition from other metals. Alu-

Continued

on

page

34

Volume

1ST

Number 5754

.

.

.

The Commercial and Financial Chronicle

(2857)

pec ted

foi the Future

principal product in
there

terms

of

and

tonnage,

should

be an even greater
Fertilizer and industrial

product

future

meal

portation

production and

trans-

techniques, all hold

promise

dues.

uses

are

valid

a

of-a

tilizer

house-

tinue

item,

ing

ammonia.

the

years

In

quantities of

40

pounds used today to 60

Already at
the head of the
•

fer¬
con¬

path, increas¬

than

more

So

should

its upward

from

billion
or

more

•

billion pounds by 1975. And if the

present rate of increase in feeding
the soil is maintained, the national
average
application of nitrogen

petrochemical
industr y,.
which derives

gas and

terms

oil, in

of

!

ton¬

ir.

own
.

'

17
•

this expectation be ful¬

have been saturated.

•westernoit

example,

outdistance

its

*•

filled, the soil will by

nage,
ammo¬
nia bids well
to

pounds in the next
-\y:

Should

what

no

means

Cdnsider, for

European

nations

are

swift,

postwar

spreading per average acre of
arable land: The Netherlands, 156

growth.

..

.

P°Pulj*tlon

With

the

principal
nitrogen, phos¬

The

•*

'•
-

.W

'•

-

\

*

.

#

%

.

made

8.6%

up

phosphoric acid 10.1%
8.3%. %

potash

"

,;, v
A measure of the growth in the
use of
nitrogen is found in com¬
paring
these
percentages
with
those

of

1910.

In

that

the
2.6,

year,

corresponding breakdown

was

at

ma¬

industry.
to

eco¬

by

pipeline.
$23 per
costs $11
to

some

carried" by

cost

pipeline,

could

be reduced and
manufacturers would have greater
flexibility in* locating^ plants ad¬

vantageously: The pricing:; c>f
.

phosphate.
distance

cropland.

roek-yyateiNrildrry

of

five

miles

a

foT

has

a

been

reported in Florida. The operation
of this line will
undoubtedly be
.

In

actual

practice,

50

to

100

pounds of anhydrous ammonia
ammonia solutions are

applied

or

obseryed

witlx

interest

by

the

per

fertilizer^yr|dustry.'i4' f.: :.•£'<.< y r.;
nitrogen figure re¬ acre.
iPipelin^ ; are playing i an inflects the development and growth
-Other
forms
pf
nitrogen are
creasingMJimportant- role in the
of the synthetic ammonia in¬ available
for
areas
where
thee
petrocheflpcal industry; They help
market for anhydrous
dustry. :7';\
ammonia is lower - production
arid ' marketing
Until r 1940, expansion in con¬ limited. From ammonia
and air,; COSts.
V<
••
■''/(' j
'■ 'it1*,'i
sumption of nitrogenous fertiliz¬ for example, nitric acid is formed
Low cost ammonia
9 and 3.8. The

.

,

•

in the United States
reason

Other

chiefly historical.
products, only

was

than

slow.

was

waste

imports of nitrates from Chile
Norway
The

try

and

available.

were,

synthetic fertilizer indus¬
born in 1913 when Ger¬

was

many

came

up

for

process

ammonia.

with

directly

the

first

oxidation, which

when

foundation

reacted with additional
ammonia
produces ammonium nitrate. Am¬
monia
processed
with

industry
growth.

carbon

dioxide yields
The
farmer

urea.

geography plays

role.

a

on

may

■

;

for

firm

which *he fertilizer
base
its ri future

More t;/ extensive

pipelines

use

transportation

of

will

permit the fertilizer manufacturer

:

has 4 a
choice
of
and in his final selec¬

fertilizers,
tion,

1

is; the

by direct

to further reduce costs
to benefit
the
American 1 farmer
and
the
nation. Sv

He

•

•

synthesizing

During and after World

increases, so pounds; Belgium, 84; West GerWar I there were significant tech¬
nitrogen used
many,
46; Norway, 38; United
nical developments in the fixation
croplands. Chemical
Kingdom, 31; Sweden, 20; and
nitrogen fertilizer's main source
of
atmospheric nitrogen in the
France, 15.
is' ammonia.
United States. It is reasonable to
•.
-: ;,
In 1955 the synthetic fertilizer
assume
that a sharp increase in
"Another
ammonia
compound, industry
alone
consumed
some
the use of nitrogen would have
ammonium nitrate, is now
coming
■
4,200,000,000 pounds of the 8V2 taken
Harry B. McClure, Vice-Presi¬
into its own as a preferred mateplace much earlier than
biinon pounds of ammonia
dent of Union Carbide
proCorp., was
1940, had it not been for the poor
■?»?
u
i*
®\«
duced in the United States. Cur- economic conditions of the 1930's. elected Chairman of the Board of
1956 more than half of the
pdus- rentiy both consumption and proDirectors
of
the
From 1953 to 1956, respectively,
triai explosives consumed in the
Manufacturing
ciuction are much higher. Soil enChemists' As:
United States, or 300/100
petrochemical production ac¬
tons, was richment needs alone could
sociation at its
pre- counted for the following percent¬
.JT1
86 th
Annual
ui K0nfC-rTai1Vu" empt existing ammonia capacity ages of all ammonia
produced:
Meeting held
1975
a few s^Qrt years.
75, 85, 90 and 90.
at White Sul¬
J'
At the moment, U. S. capacity
Concurrent with increased usphur Springs,
Ammonia Manufacturing
totals about 10 billion pounds a
+u

raw

itself

transport

also

were

their

10 pounds of nitrogen
With a farm the size of

the national average of 80
acres,
he would spend $48 to
apply the
going rate of ammonia to his

major

fertilizer

lends

averages $6 per ton, but
shipping
by rail for several hundred miles
brings the cost to roughly $9.50.
If sulphur and
phosphate rock

••

•'

farmer, incidentally, would

weight." Nitrogen

%

ton, at its source,
transport several hundred miles
by rail. At the mine phosphate rock

pay about six cents per
pound, or
60 cents for the U..
S. national
acre.

the

gas

Sulphur, valued

*•v

4

the

are

of

nomical

generally
possible to produce ammonia for
$30 to $40 a ton. The selling price
pf ammonia today is in the
$88

three

nutrients,

terials

Natural

natural gas price of ap¬
20 to 30 .cents per
thousand cubic feet, it is

'

materials and market.

sulphur

on

a

'

Manufacturers, in turn,
their
plants ad¬

locate

Natural gas, phosphate rock and

proximately

area.

to

raw

•

.

arid

The

20

ammonia

ready to be spread

are

•

of the total,

ers

years.

synthetic

coating,

farmland.

the nearest manufac¬
minimize his transporta¬

vantageously with regard to both

end

continuous sheet of the

a

to

tion costs.

product, which is broken up into
cube-like pieces. The
pieces, after

per

around

chemical

%

result is

from

try

average of

per acre should at least double to

products from

from

1955

plant

to yield

on

pass.

consumption

on

ma¬

phoric acid and potash, accounted
of all fertilizers used, by

"
and greater

as

processed

include

derived

inference, therefore, that

greater
-food

Chemically

turing ammonium nitrate. The

for 27%

the soil will be called

the

opera¬

the

plants.

.%

..

slaughterhouse

phosphoric
acid
superphosphates and the
nitrogens, the bulk of which are
and

•

bright future
foracommonplace
fro Id

pot¬

as

in some areas, sewage
garbage disposal plant resi¬

terials

why
synthetic

Feeding the American people, is expected to grow well past the
booming use for blasting and 200 million/ total by 1975. There is
cost

for¬

limited

tions and,
and

this

for

techniques improve.
a

in

such materials

are

from

indicates

expected to take
up 18 billion pounds by 1975, requiring additional investments
of $400
million, and this figure does not include the increasing
demands from explosives and
exports. Sees cost of ammonia
and its products
going down as production and transportation

lower

available

group,

supply,

Davis, Inc., New York City

reviews the unique, rapidly extensive developof ammonia, now the petrochemical industry's

ment and usage

'

mer

buys
turer

year's

ash, gypsum, tankage wastes, bone

Mr. Westerhoff

^

&

.

last

chemically processed. In the

By R. P. WESTER1IOFF

Ford, Bacon

to

spend a sum greater produce
a
host
of
ammonium
$900 million for phosphates and sulphates. ;.
>-.<
capital expansion in 1958.
The Stengel Process is. a new
Fertilizers as applied to the soil
and unique method for
manufac¬
are either
naturally occurring or
than

5

Will the amount of
to enrich the

....

-

,

,

...

.

tive

Ammonia

combining

made; ;available

was

form.

In the. past, prills and solu-.

Phillips"
available.
Today; the ^^ iCheraic;ai, FhiUips,
end product of the new Stengel
V
Spencer, Standard
Process
is
a
dense
crystalline *9^ °*
V»a
tioris

SOm> petroleum Chemical

were

Ammonia needs that

orrunnio

'

•Ttr,

.

.

predicted

,

t While
maustry in general was
expanding at about 4 k annually

in

investment

growth

seen

a

3% Pillion pounds
than1

twelve-fold

-i!
I
n19o5 a
c

1

as

ir)Z *******

oLnnnnnn Pounds
ilnundf
900,000,000

to

as

.

rnT-^ m!

^e

some

$50

million

capacity will have

^niit concurrently

to

meet

for ammonium nitrate
explogive
Nothing has been said so far
&n

about exports. In 1956, the United

40 880

national

the

mil¬

ooo'" States shipped $115 million worth
to^ 40,830,000 - Qf fertilizers abroad This ghould
than four-fold.
tn

bo

jncreoSp nf 200%

_n

bv

1975

snow an increase 01 ^uu/o oy 19 id.
Currently annual sales of Amer.

ryptrorhprmVal

nrnrinrprs

in¬

1(r^ petrocnemical producers, in
eidentallyareruon.rig at the rate

to the soil of American farms was

1940

$400

demands

more

.

In

roughly

Additionally,

000 pounds, 01 less
From 1910 to 1940 the rate of
X1U1U
:
annliVntinnc
lncrease
of nitiogen applications

slow

of

worth of extra

instance, farmes sp ead
1)01111

he

and

lion.

depth down on the U. S. farm.

For

can now

fertilizer

uses
should require a
capacity of some 18 billion
pounds by 1975. At today's plant
costs, this represents an additional

petrochemically produced.
m

both

total

early postwar years, petro¬
chemicals grew 15%.
In recent
years
90% of all ammonia was
Nitrogen itself has

for

industrial

the

aver-

only two pounds per acre.
however, the ine lulure> me producers are ex
average
expanded
to
approximately 10 pounds, an increase of
roughly five to one
The growth

^eiSturfleproduceTsareex

age was

In the next 15 years,

reflects

farmers'

highly

concentrated

preference

for

LOOKING LEADS?

fertilizers

that result in lower handling and

composed

Charles

in
The

are

States.
more

or

ter of

a

of any

use
area

a

all

will

be

available

their

FREE:

a

quarter of

a

of water and

to form




one

First

to

75

some

95%. ical

-

five of air

J.

C

used

are

methane

and

When

the

&

tor,

President

S.

Frederick,

D. S.

Rohm

com-

Since 1932

to

.

terms expiring May 31,

the

in

Re-Elected

firms have

looked
List

list

to

Vice-President

&

Haas

an

Co.

MCA

Fred

C.

for

the

REPORTS

chemical
the

production capacity

United

Penington, Colket & Co.

was

PHILADELPHIA, Pa.—Pening¬
ton, Colket & Co., members of the

term

New

York

other

that

Stock Exchange and
leading exchanges, announce

Edward

W.

Godshali

is

Philadelphia
office, 123 South Broad Street, as
a

registered

representative

cializing in mutual funds.

FOR

FINANCING

DESIGN-CONSTRUCTION

requirements.

Mailing List Catalog

on

INTERNATIONAL LIST CO., INC.

NEW YORK 16: 444 Fourth Ave. MU 6-3700
-

CHICAGO 5:55 E.

■F. W.-

Request

RICHMOND,

-

VIRGINIA

Bell System Teletype:

Washington St DE 2-Q580

engineers

CRAIGIE 0 CO.
RH 83 & 84

"

Telephone Milton 3-2861

--

NEW YORK

CHICAGO

•

MONROE, LA.

•

LOS ANGELES

'

V

:

TORONTO

•

now

associated with their

jfort, JSacott $l Davis

MUNICIPAL BONDS

1959.

Godshali Now With

Foy,

Fisher, President, Gamma Chemical Corp.; Joseph Fistere, Presi¬

Specialists in

CAROLINA

for

was

was

Vice-President.

elected

VIRGINIA—WEST VIRGINIA

the

Co.

.t

States. It is the
oldest trade group in the chemical
field.
'
''

,

expiring May 31, 1961 are:
R.
L.
Cunningham, President,
Ohio Ferro-Alloys Corp.; J. Robert

manufacturer
can
use
the same pound of am¬
monia
with
several
pounds
of
acid

Direc¬

a

M. F. Crass, Jr., full-time Sec¬
retary-Treasurer, was re-elected.

a

sulphuric

and

President, Koppers Co., Inc.,
elected

Co.,

term ex¬

The

Frederick, Vice-President of

Directors

or

for

Vice-President
Re-elected

product, ammonia, again at
pressures and tempera¬

phosphoric

McClure

,

re-elected.

was

I).

tures.

biriation fertilizer,

.

a

Manufacturing
Chemists'
is an industry group
Hull, USA (Ret.),, representing more than
90% of

Gen. John E.

elevated

a

.

Vice-President

Chemical

Association

full-time

removed, a nitrogen-hydrogen
gas remains, at the ratio of 1 to 3.
The
final
step
is the catalytic
combination of this gas into the

To meet the demand for

B.

narry

Co.,

Gillis,

Director for

a

piring May 31, 1960.
■
'
i 7
!
^Raymond F.' Evans, President,
Diamond Alkali Co., and S. B.
Penick, Jr., President, S. B. Penick & Co., were elected Directors

o.'ri: ri:7T.;7:
n n
o r
,;

mittee.

are

final

Corp.'7'; 4

L.

Monsanto

elected

Inc.,
succeeds
Mr.
McClure
as
Chairman of the Executive Com¬

oxides

carbon

andCheiri-

Merck

are

combustion, the exit gases contain
hydrogen, nitrogen, carbon mon¬
oxide, carbon dioxide and water
vapor.

o

John
of

.

President of

pound of ammonia.

steam

brought together at elevated tem¬
peratures to produce carbon oxides
and hydrogen. Then the nitrogen
is introduced in the form of air,
along with additional steam. After

century

International

mailing

dunhill

for

feeding the American people.- 1
Population, on the other hand,

of

Approximately Tone
pound of natural gas, 40; pounds

quar¬

century, and with no signs
substantial increase, it can

that

over

Dunhill

be assumed that this total acreage
is

or

financial

in the United
has remained

less constant for

.

Eastman Co..

President ot

ery

Air

Reduction
Co.,
Stauffer,
President,
Stauffer Chemical Co., and James
C.
White, President, Tennessee

J

Machiri-7

Munson, Chairman of

Board,
Inc.;
Hans

He
succeeds;.
Ernest; Hart,v

Food

S.

the

NORTH and SOUTH

F

\

Some 400 million acres of crop¬

land

by

methane.

shipping charges per unit of nu¬
trient.

manufactured

atmospheric

Grace

McCurdy, President, Shell Chemi¬
cal Corp.; Glen B.
Miller, Presi¬
dent, Allied C h e in i c a 1 Corp.;

Virginia,

June 12.",

nitrogen
and manufactured hydrogen.
Petrochemically, the hydrogen is
derived from natural gas, which is

anew1

in

is

"

R.

Co.; W. G. Malcolm, President,
American Cyanamid
Co.; R, C

-

Explained

Chemical

Vice-President, W.

&

.

West

Mallinckrodt

Wovks; Marlin G. Geiger, Execu¬

tripled by

re W1
.

dent,

*

'VANCOUVER

spe¬
.,

The Commercial and

Financial Chronicle

.

.

.

Thursday, June 26, 1958

(2858)

6

crease

Freedom

Let's Export

used

General Manager,

National Association of

Referring to USSR's

Manufacturers

field in the

NAM executive challenges bankers to help overcome
American economic illiteracy as the first step in preparing our
citizens for the demands of ideological warfare. Appalled by
extent of misunderstandings of economic facts said to exist

our

characteristics?-

socialist

on

■/

-

y.

We have the

progressive income
tax first proposed by the Marxists,
but we have made it more radical

The

us.

everywhere

oppressed

too, might some day

/

years

in the cold

We have

war.

of the world were, upon nomic education among/,students
liberties; guaranteed " by'^can be judged by*these responses
Constitution gave hope to the r to a recent" survey >by* Opinion

the eyes

that they. Research associates "taken among
live as free high school seniors.
Sixty-one than they could ; have imagined
/•
men.
'.percent did not believe in the possible. • — • - ;
We /have a great, number: of
Russian plan.
Under the freedom of our form -need for profits. Eighty-three perCommunist expansion since the of government, America rose in a -eent , estimated industry
profits government manufacturing opera¬
tions producing goods in competi¬
second World War has had sev¬
century from an agricultural 11a- at 25.%. Sixty-two percent thought
tion with private firms.
\
eral phases. First, the Red Army tion that imported even its nails workers
should not produce all
The Federal Government is the
over-ran all the territory it could
to the mightiest industrial natiom'they
could. . Sixty-four-percent
after the German and Japanese on the globe. This was the miracle thought
wages could be, raised largest land owner in the coun¬
armies crumbled in the last days of freedom. But today this mira- ten cents an;; hour without/'in- try. It is the largest employer;
We have Federally owned and
of conflict. Then the Russians ob¬
cle isf taken for granted;:!!! does "creasing prices.
Fifty-three per¬

forts for more
10

opinion

among

-

evident that the immediate Rus¬
of great
sian threat is not a military one.
satisfaction ifv one's efforts are
It is rapidly taking an economic
crowned with success. The United
characteristic. We are now in a
States has been making great ef¬
relatively' new phase of a new
than

without

value

Research ass Q fcJ a t e s titles of ownership. ■ Our govern¬
high school students show ment has, taken long, strides ;. fothat this course changes student ward; socialism,iaccomplishing by
evolution results that our people
iar
to
millions.
The 1 Russian -opinion about business./ - /
wouldhave ; resisted, if they had
miracle is just a promise, it is not
Young
people want, to know
here yet.-But their approach- is about .the roles they play?in-4>fe been attempted-by revolution.5/;•> •)
novel. It is new.- \
g-.••f-'as consumers, as producers,' ;and
Have;' you taken inventor y
When the United
States 'drew as owners of "a share of the na- lately of how far our "free enter¬
prise system already has taken
up
and ratified its Constitution, tion's wealth. The need for eco-

produce through slavery. We have
already produced our American
miracle and it has become famil-

source

a

its

-

thing Russia

have.

we

miracles

people, including some union leaders, and socialistic
inroads, Mr. Miller recapitulates what the NAM is trying to do
through public education efforts in the schools of 35 states,
and other media, about the day-to-day economic issues., Refers
to Syracuse, N. Y., model Manufacturers Association's training
program, and warns that it is not enough for Americans to be
patriotic without knowing what America truly is*
always

one

proved that freedom can ;Cators,

produce

among our

is

have

we

is

Furthermore, .yeloped in cooperati6h-with.edu-, theirs. But government controls
and has beefL presented can rob people of effective .owner¬
far
greater, "economic; in the schools'^of ! more r than 35 ship of securities and. businesses,
than
communism
can states.'
Surveys
cohduCted by allowing them, to keep empty,

But

aid.

cold war,

It

stealing

were

.production, prices,*,wages,* profits
ever having to enter your prem¬
all the major factors gin :our
cannot export—and that is free- economic life. It strongly empha- ise^. They are still doing so.
Inflation is/one thing' that robs
dom.
Russia has no freedom to sizes the part that freedom plays,
export, along with her economic v The classroom program was de- people of the value of ; what/is
•

war.

there

But

expansion m the economic

lan

as

the cold

KENNETH R. MILLER*

By

were
faithfully guarding oiir
be economics, program called "How
money in your vaults, and pru¬
people and Our Business System., Operates."
dently rmanaging /loans,
others
economic weapon in This program explains markets,,

in consumer goods can

denied to the Russian

,

had

our

Mar¬

sh

11

Plan,

a

Four

Point

and

Aid

we

have

partici¬

pated

in

have

e

x

-

ated

up

supermarkets

states, and

their orbit as

and
mo^el

Afghans,

Kenneth

brought them into

should.

•

'

•

,

Must

Sad

>

satellites.

to

:

•

First About

Learn
/

even

a

:

Our

.!•

may

to\ the program -1 lraye just, do- eduction, of farm acreage, of farm

citizens do not realize •< scribed.
the connection between the prin-. students

ciples of freedom and the growth
of the economy of the nation hi

■

.

not have collectivized
our
farms, but we have govern¬
ment ' management of farm pro-

of students who had been, exposed

great body:

Federally
financed / utility,, systerns.
"■"/•/.. /
./->■
>
-; •."• ■/ - "• '
We

The same, questions were asked

,

;1

Freedom

say,

thought; the government
should ,own the banks, and the

it cent-

•

»/•:•/ 'railroads and steel companies.

of our own

By warfare, communism over¬
ran China.
And by warfare it at¬

R. Miller

attention

the

command

mit

negotiations. Next, by subversion,
they caused the establishment of
Communist governments in liber¬

changed stu-,
dents with the
set

territorial conces¬
during diplomatic

sions they could

We

tions.

the

all

tained

the

United Na¬

.

prices and of some kinds of farm
labor. /->./■• ;•■*•/■"•■/'
:We have Federal financed and

The opinions of . these
as much as 30%

were

favorable to business, be-

more

subsidized housing."-

cause they were informed of the
We
have
social welfare pro¬
/basic economic facts of business:
patched Louis Armstrong with his
Present Expansion Is Economic
i Now, it would be a mistake to grams of various kinds which tax
trumpet to serenade the masses
Peter to support Paul.
:
'/ ^
The Russians will not hesitate
think that the only problem is
behind the Iron Curtain.
And right now Congress is con¬
Has
success
crowned our ef¬ to use these methods again, if op¬ real plenty and its attendant free-> 1°
opinions into the minds
sidering authorizing a quarter of
forts? I am afraid that the answer portunity arises, but the present dom with their system of prom- /that may have none, or that the
a
billion dollars, to finance in¬
main direction of attempted Com¬
ised
must be no. And yet, there is this
plenty
and
its inevitable, .only voices raised against ecostitutions that will in turn, finance
munist expansion is in the eco¬
consolation—we do not vet live
,everlasting slavery.
• ^
-momic freedom speak iii Russian small businesses..' ! This is capital
nomic field. The communists are
in a Communist world. Our ef¬
The free world's freedom- and .accents.
There is a gi'eat deal
finance, they are talking about,
out to prove that they can out¬
our
own
forts have helped to keep part of
may depend
upon how-Of misunderstanding of economic
"not/ emergency
loans. • Having
the world free. And because this produce and out-trade the United ; well
we explain, and how well
tacts among our' people;; ! have largely dried up venture capital
States, and that the uncommitted
is so," we still have time. But we
we export, the economic ideology
mentioned the common miscon- with its tax system, the United
nations of the world can make
can hardly claim that the results
of freedom.
:
'
r' ceptions held by high school stuStates
is
seriously thinking of
more
progress faster under their
have been much better than this—
But before such a program can dents.
You are familiar with
system than under ours.
going into state capitalism in a
the gaining of time in which to
meet with success, among the uiW some of the economic nonsense
new direction:./
!
;
Mr. Khrushchev has been think¬
make more efforts.
committed peoples, our own peo- preachedvby some union leaders,
You could add to this list from
ing about this approach for some pie must understand. /'
Our program ;of>.economic- in- -your own observations. Each step
For, despite the strivings of pur
time.
He knows another Korea
Business first must explain our formation is one that deals with
statesmen and the sweetest notes
of the road toward socialism puts
might mean all-out war. The bru¬ business
system better to our own specific day-to-day issues that afMr. Armstrong could coax from
more hobbles upon the free entertal suppression of the Hungary re¬
his trumpet, we find America has
people, so that business and the :t'e<A the welfare of all the Amerivolt caused Russia to lose much
American people as a whole can -can
people. Pur messages are ;prise system—the system which
not made her points clear with
of its synthetic emotional appeal
,;has made us the envy of the
explain it to the rest of the world, .messages .of reason and right. 1 world. As these
peoples abroad.
growing burdens
as the protector of the downtrod¬
How can we develop freedom as should
like to tell you briefly
Today, Nasser,
abetted by den masses. So it was time for a
cause
business to falter momen¬
weapon? We must train our own .about some of our activities in
Khrushchev, is accused of causing new offensive
along new lines. As
tarily,
more
burdens are sug¬
anti-American riots in Lebanon.
people, and enlist them as the trying to bring about better pubI recall, the first hint''of this came
gested as the remedy for our ail¬
ready reserve of the cold war. If be understanding of the economic
The
Government
of
Indonesia
ments.
when Mr. Khrushchev announced
' V
'
the
drifts
more
and
more
into the
ideology of a
people is'* a issues as we see them,
that the Soviet Union intended to
Meanwhile, too many persons
Soviet orbit. All over the Middle
weapon in the cold war, the peoWe have been doing everything intimately concerned with the
produce as much milk and butter
East and in Asia the issue is still
pie must understand that weapon in our power to tell the real story
and meat as we do within a few
management
of
business
have
as
well as a soldier understands ol' the causOs of the recession, and
in doubt. Even inside the borders
.been content to disapprove from
years' time. And as the months
his
rifle.
And
just as a. rifle to prevent ill-advised measures
of some of our close allies, the
a
distance—and without entering
passed, he talked more and more
NATO nations,
the Communists about goods for the people, and eroded with rust may fail at the proposed as cures, such as pumpthe political arena. '/
,;
crucial moment, an ideology priming and heavy spending. .
hold the minds and hearts of large
.
less about goods for the state and
What can you do to make your
eroded by indifference may fail
sections of the populations.
#We have been conducting a
for war.
in the years ahead.
And we have just had a demon¬
vigorous campaign for real tax ; influence felt and make your
Ordinarily, this would be the
opinions count in the affairs of
Bankers have long been in the reform, and opposing hasty taxstration of Communist infiltration kind of
challenge that America
/ community,
state -and nation? of
Latin
America, when Vice- would welcome.
Who would be forefront in explaining the prin- cut programs which would be of V/, You may choose to -join with
President Nixon was stoned and so foolish as to challenge this na¬
ciples of economic freedom to the little or no benefit to the .entire us at the NAM to fight these vital
in Yugoslavia.

control all of Korea.

to

We have even dis¬ tempted

live.
\ vr
To meet the challenge of Russia,
we
must contrast our system of
which

they

1

,

'

a

_

.

,

^

us
<

spat

in

upon

Peru

and

in

Venezuela.
Just

a

tion to

a

few days

ago

the World

Gallup Poll reported that some of
our most important allies believe

American

battle in the field of pro¬

Who

duction?

to match the
against ours?

temerity
economy

American

The

Russian
:

They are in a economy.
to do this job.
We have been keeping attention
people may befocused upon the monopoly power

people.

position

unique

have' the

would

somewhat

baffled

about

mid abuses in labor, unions today,

de-

the

Or

may

you

seek

your

public affairs/ in
local community. :You can
it without: ever running for
place

own

your

/find

in

and seeking effective legislation
to make, unions more responsible public office. You can find it
within your own political organi¬
under the law: ■/' :•
zation at the local level.
Or you
- We have been working to stem
; may take the lead in developing
"the drain of power from the state a
program
in your community;
governments an<t local communi- which will make its contribution
ties to Washington. ; •
toward taking the economy's fate
\We have been urging businessout of the hands of leftists and
a,country operating under; a So¬ the campaign to wipe out eco- men—our members and others— tinkerers and putting it into the
viet system can rapidly expand nomic illiteracy among our peo- to be active participants in polihands of those intelligent enough
its goods and services for con¬
ple.
Bankers must continue to tics so that the nation will have

tails of our economy.
They beWell, Mr. Khrushchev has the
Russia will be stronger than the temerity. And he has thrown down .lieve that bankers know the facts
United States within 10 years.
his challenge just at the moment of economic life intimately. They
It would be nice if we could say, when we have been having the ; are your customers, and they trust
"But that's all Mr. Dulles' prob¬ worst difficulties with our econ¬ you enough to place their money
This trust will
lem," and go back to our desks omy that we have had since World in your hands.
not be abused, but will be used
and. worry about the recession. Of War II.
Khrushchev means to prove that for their service if you join in
course the cold war is the concern
-

battles.

-

,

of

Mr.

and

Dulles

of

President

Eisenhower and Congress,
of

have

us

tion

in

a

stake and

an

but all
obliga¬

the

problem, too.
We
must recognize
it as our
problem—now. We showed quick
recognition that it was our prob¬
lem when we reacted to Sputnik
I by looking to see what was go¬
ing on in our schoolrooms. And
we
have shown our recognition
and alertness

almost unan¬
national de¬
fense
establishment
capable
of
dealing with any military threat.
But it is becoming increasingly

imous

by

support

our

of

a

several years in which
their economy has grown twice as

reported
fast

N.

Y.

address

State

by Mr. Miller "before tbe
Bankers Association,
Lake

Piacid, June 12, 1958.




ours.

as

growth of

our

slowed

been

And
own

by

today,

the
economy has
an
economic

downturn.

to hold
more

tions,

out the lure

economic

advance

aid

of
to

means

nation

a

freedom

his

has

no

National

end.

;

Association

of

too, has been in
in
explaining the

befall
_

.

us/ "

what
the

,

\

Extends Challenge to Bankers

sociation

necessity for- economic freedom
to the people of America.

forefront

some

NAM

major portion of his boasted in¬

where

the

is

economy

and
livings—

we

earn

our

of

Syracuse.

already

aware

Perhaps
of their
/

^

organized
a
training
Public
course, and political leaders were
Exnlained
to
come / in
and , t^aeh
needed in. our public affairs today. invited
work begins in the schools^V ;" Perhapssome of you have hung them how to participate in politics
They
carried their
we have conducted a visual
back too long already. While you effectively.
,.

Our

are

program.

They

_

The

population.

-

way

that

eat, what we wear

last one of us.
If you're looking for a model
for
your
own
program,
you
couldn't do better than to get in
touch with the Manufacturers As¬

And I should / like to , extend
such a challenge to bankers.
Bankers are gifted,)/with the
; talents of organization and leaderEducation'Program
j ship — the. q u a 1 i't i e s/that are

the

na¬

we

every

,

„

realize

to

the benefit of sane counsel from

we

effort, men who truly
into the ica's economy

and

thought of the welfare of
captive

as

more

because the Russian
is a state economy, he
wage this economic warfare

own

Just

poured

other

and

no

cause.

have

Manufacturers,

economy
can

this

know what Amermoney and
even
lives
needs in' order to
cold war and still see no end, the support us all and wage a cold
struggle
to
maintain
economic war—or a hot one, if that should

as

The

Furthermore, Khrushchev

with
*An

Already the Soviets have

sumers.

..

-

Volume

187

Number 5754

.

.The Commercial and Financial Chronicle

.

,(2859)

knowledge back to their own
fiTaces of business'and organized
political. action

for

courses

Trnst

their

management people.
will be for all these

political workers

fan

newly-trained

their

own

spread

to

communities. They will
efforts among their

/

their

friends, neighbors

and

You will find them in the
political
clubs and attending their

precinct

tion.
this

is

should

us

what

be

'

v.

•

And

,

ac¬

every

of

one

profitable outcome of the

doing .today.
enough.
A

Patriotism

is

knowledge

of

what

of Trust New Business

not

good

citizenship is fine, but it
means nothing until we
begin to

Fiduciary Fund reached

me that French schools
have been
teaching patriotism and
an abstract kind of
citizenship to

of

from

tots

not

teach

do

citizenship.

to

teens.

the

Your

the

vital

University,

has just been
completed.

newspaper

tures

that will work./

we

/.

war may not lead to a
but it could lead to "cold

war,

defeat." It could lead

victory,., without
heard.

have

■

This

We

at

to

NAM

fnen

and

other

lands

going

that

help
war

whose

women

freedoms

our

will

to

defeat, or
being

feel

obligation /to
the troops of the cold
an.

faith

could
Ernest

in

on.

to

take

-

to

cans

their

express

America,- without

faith

knowing

in

what

America truly is.

.//Americans have "know-how,"
in the world will tell

anyone

We must also have

Pressures

as

you.

"know-what."

are

being
brought
upon us today to abandon the very
principles which have brought us
so
far. Perhaps our government
and our system lack
novelty. But
the alternatives offered are not
novel.

The

world

has

known

tyrannies before. Collectivism
Jailed repeatedly through all
corded history, destroyed
by
lack

of/regard

for

human

skills

in

in

effect of

There is

no

gone

the

taking of
the

a

of

tioning

widely

acclaimed

Bank
In

to

or
taking
challenge
the

responsible statement of
seeks

"gain

through

one

the
irwho

freedom's

both

better

no

human

freedom

than the point at which they are
feeing attacked. That point is the
political system of our country.

Our
men

freedoms

shaped

were

by

who were willing to work at

to

make

elaborate

the Bank

Fiduciary Fund. This

open-end

investment

the

'

Trading Mgr. of
Baumgartner, Downing
BALTIMORE, Md.—Eben J. D.

•

Cross

has

III

manager

of

been

the

trading

ment

of Baumgartner,

"Co.,

Mercantile

members

of

Baltimore

Stock

Cross

is

a

appointed

depart¬

Downing &

Exchange.^

recent

graduate

Harvard University.




Mr.
of

on our

as

trust

Eve."

great expansion
business

has

work

of

Trust

Division.

other

its

there

beneficiaries to whom it

outlook

to be

was

financial

film, "So Lit¬

was

This advertisement is not

■/'/•

:

an

offer to sell

;/ The offering is

'

:

The

NEW ISSUES

/

f;

was

promotion

of

respect it

successful,

pretty

CHICAGO, 111.—Edgar S. Beau¬
Ray

Allen

South La

associated

&

Salle

Co.,

but

bond

Mr.

firm

of

Beaumont

Chicago,

was

Co. in

I

Municipal Bond Divison.

am

Chicago

as

"■

"

•

/

of the

European Coal and Steel Community
$35,000,000 ;'

//.

5% Secured Bonds (Eleventh Series)
Dated

July 1,1958

Due

-

OFFERING PRICE

July 1, 1978

97% AND ACCRUED INTEREST

completely understood in all
quarters, and in recent months the

Division

has undertaken

a

vigor¬

$15,000,000

educational effort to acquaint
its members with the
great use¬
fulness of the Fund and to en¬
ous

iVz% Serial Secured Notes (Twelfth Series)

and
to

the

total

value

of

the

Dated

July 1, 1958

to 42

Fund

It is
believed that before the close of
the year there will be a good in¬
crease both in the size of the Fund

are

the creation of similar
terned on ours.

•

*

in

Offering Price

•

1061

$5,000,000

1962

99.64%

1963

99.56%

$5,000,000

99.72%

(and accrued interest)

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

months

was

•

our

;

to

upon

consider

a

While it

Kuhn, Loeb & Co.

.

wide range of subjects,
particularly in the field of proposed leg¬

islation.

'Maturity

Estate Law Committee.

called

was

..//■ "

Amount

<

most active Com-

recent

Trust and
It

our

The First Boston Corporation

Lazard Freres & Co.

•.

did not sponsor

Blyth & Co., Inc.

.

Eastman Dillon, Union Securities & Co.

the

bills recently enacted by the
Legislature
amending
the
law
against perpetuities in this State
so

to

as

remove

the

1

62nd
York

Placid,

Goldman, Sachs & Co.

report by Mr. Keiter to the
Annual
Gonventi-n
of
the
New
State
Bankers
Association, Lake
a

N.

Y.,

June

11,

Hallgarten & Co.

i

1958.

Glore, Forgan & Co.
Harriman Ripley & Co.
Incorporated

limitation

Kidder, Peabody & Co.

the duration of trusts to two

•From

"

July 1, 1961-63

$5,000,000

'

Probably

Due

The Serial Notes will be sold in substantially equal amounts of each
maturity.

approximately $5,833,000.

'

Merrill Lynch, Pierce, Fenner & Smith

1

Smith, Barney & Co.

'
„

Lehman Brothers

.

June 25, 1958

Stone & Webster Securities Corporation
'

~

135i

'

Vice-

as¬

Manager of its

offer to buy these securities.

an

as

formerly

.•

,

withb

IncJ,

sociated with Farwell, Chapman &

High Authority

fund

is

Edgar Beaumont V.-P.
Ray Allen Co.

.

>

the

healthy, progressive and effective.

fiscal

bleak.

solicitation of

■/

the

Division

made/only by the Prospectus.

■•=

of

President, Ray Olson announced!.

In that

or a

and

money-making
use
by

film

times when the

were

work

members

Of E.

tool for

very

how

Street, municipal

the

business.
proven

a'
a

is

not

This

in

men

trust

our

trust

as

for

tremendous burden upon
trustees,

is

Building, lives in being, it
actively sup¬
Philadelphia- ported "these bills after their in-

the

the

trust

been

upon

Trust

accounts

an¬

but the data called for would have
been largely
meaningless to the

by the Trust Division
incorporated by special act of
Legislature in? 1954 primarily
an
investmentmedium foi[ the

mittee

Gross

Thei

upon

Trust Promotion Film

undertaken

and

neighboring states

Only those who will serve free¬
dom are worthy to be free.

called

these bills,
happy indeed to be able
they failed to pass.

am

that

the

undergoing is being facilitated and

to report that

project, but

and number of
participants. It is
politics. If they are to be saved,
men must
be willing to work at worthy of note that several of our

politics today.

and I

Fiduciary Fund

participating banks had risen

and

;//

is

bills

know

by - those

place to defend the principles of

;

.

there

con¬

gratefully acknowledge the
effort they have given.

and

far-reaching impli¬ promoted by their

a

regarding any stock dividends re¬
during the year. The bill
would not only have imposed a

<

economic

'/

'? / Certainly

of the

concerted effort to point
out.to members of the
Legislature
the dangers inherent in

the

ceived

courage its more widespread use.
As of May 1st, the
opening of the
current fiscal
year, the number of

destruction.

>

reason

only
time

which

of

Trust

cent months a substantial contri¬
bution to the advancement of the
trust business in this State. I can

1

bills

measure

membership throughout the State

last report I referred to

my

re¬

ques¬

youth,

^rouble

a

trus¬

favor¬

not understood.

were

Division

tle

who have attended
it, and by the
banks which have
sponsored reg¬
istrants. I heartily
recommend it
to those member banks
who have
not heretofore used it.:'

an

few moments

query

to

more

Operations,

Funds,

Common

Trust
Each has made within re¬

E.

trusts

..

answer

a

Initially, the

fact that their

for doubt

•

to

in

and'

mont has become

of appreciation as
•-"/
bf human values. Where Republics banks of this State
acting ma/
have died, it»was ignorance and fiduciary
capacity, / particularly / <
indifference that brought on the those in which the volume of trust *
fatal illnesses.
' :
' business is not large enough to
), Not one, of us must let an op- sustain a common trust fund.
portunity pass by to defend free¬ While the Fund is not operated by
the Trust Division, it was and still
dom. Our defense may not be
.a
spectacular feat of heroism, per¬ is a Trust Division project. The
formed in a crucial battle. It may advantages .of the Fund have not

be

unquestionably

Trust

Benefit

stitutions and their business to the
public.
The
School
has
been

doms and its lack

r

Funds.

Employees

about ready to close

sponsored

its

ap¬

considerable

to make

with

cerned

Investments

support, Jargely by

two

ing

be¬

nual reports to trust beneficiaries

fect, selling themselves, their in¬

has

free¬

room

a

Trust

omitting adequate ref¬
active, hard-work¬
Committees as
those
conto such

business

climate.

had

cations

the cost of

I think I should make brief
ref¬
erence
to the fact that we are

of

their
relations—in ef¬

human

able

a

of

by the public.

ance

indiscriminating

its

wind

profit of

I simply cannot take the
time
that would be
necessary to report
in detail on the work of all of
our
Trust Division Committees even at

real

trust

shall

we

munificent

approximately $500 from this $80,000 project.
However, the film
is serving its
purpose well,
and
has received
widespread accept¬

erence

rela¬

that

say

the

very

the

of

a

with

required trustees of certain types

we

beyond

developing

the

ac¬

happy to
up

they would have been very harm¬
ful indeed to trustees and the
trust
business. The first bill would have

34,

we had been able
of the additional
ap¬
The
purpose
of
the
to assist
administrative

is

to

to

carried

operating

that, had these bills been enacted,

care

personnel

was

it

irrevocable,

tees

*

members

as

year.

easily

have

that number if

plicants.

in America Not Enough

But it is not enough for Ameri¬

<

Keiter

well

School

/ Faith

R.

in

struggle is

we

absolute

maximum;

the

was

enactment

throughout
inspired by grave

their

have brought about the
termina¬
tion of many revocable
trusts, and
the transfer of
others, both rev¬
ocable and

introduced in the Legislature this

increase the

the

we

sensed

be

where the

year,

number to

train

t—

cern

felt compelled

shot

a

^

its

State,

approxim ate-

This cold

hot

of

to

of

a

of $100,000. This
only have resulted

plication. It would

reason

developed

but

cause

support which

in: the

settlement

threat

officers of the Trust Division and

ly 30 students."

cold war, or a hot one.

a

factor

intervals

year

unhappy customer

facili-

istration

,

Committee

ten

in excess

tions

available/

.to restrict
reg-

j I have spoken of the need to be
prepared/as citizens for the de-.
mands of

success

good

at

bill would not
in most

Perhaps the most concentrated
activity not only of this Commit¬
have /had tee, but on the part of all of the

limited

"ties

revamp her political struc-r
she can get a government

is

seek

Value

by Trust

this important legislation.

"Because of the

so

There

to believe that the

York

practice

tells. you the results. France, has
had to turn to a one-man. dictator-!

Ship to

troduction.

con¬

ducted in Vanderbilt Hall at New

But

*

School,

realistic

usually by a court pro¬
ceeding, for- all trusts having a

$5,833,000, has

The Fifth Annual Session of the
New Business

Trust

aimed—a

was

counts,

Mr. Keiter reveals that the Bank
total value of

a

it

workable

formal

participating member banks, may be emulated by several
neighboring states, and shows every prospect of further growth.

years tells

children

Eve,"

support rendered

42

practice it. A good friend of mine
who has lived in France for
many

they

to

Bank, New York City

trust film "So Little for

and Estate Law Committee.

constitutes

impor¬

other
would have required trustees

bill

State Bankers Ass'n

pass,

School, and

more

apportionment of
stock dividends as between
trust
income and principal." The

Tust Division head of New York State
Bankers Association
reports on: growing success of the
group's open-end invest¬
ment fund, fortunate failure of certain
legislative bills to

meetings. They will be translating
their political convictions into

which
and

By ERNEST R. KEITER*

-

Chairman, Trust Division, New York
Vice-President, The Chase Manhattan

associates.

even

completely failed to
reach the heart of the
problem at

In New York State

into

out

directed, and,
tant, the bill

Developments

The last step

7

White, Weld & Co.

;

and Financial Chronicle

The Commercial

a

.

Thursday, June 26, 1958

.

.

(2860)
tant. It creates

Also in the June issue are analyses
Yellowknife Gold Mines, Ltd., Gen¬
Development Corporation, and the new fur styles.

Place, New York 6, N. Y.
eral

Dealer-Broker Investment

Recommendations & Literature

preferred outstanding—Herzfeld & Stern
Gumpel), 30 Broad Street, New York 4, N. Y.
no

''•//.'V,

J,.■

*,

•"

"t\vX''■?

mentioned will be pleased
to-send interested panties the following literature:

It i« understood that the firms
*

»

•

-

Atomic Letter (No. 38) on

growth of civilian nuclear projects,

tieth Street,

Ellis &

pany

'yNew York 5, N. Y.
First Bank

Com¬
panies—Cochran, Murray & Hay Limited, Dominion Bank
Building, Toronto, On^., Canada.
Fire & Casualty Insurance Company Stocks—Data on 44 se¬
lected companies—The First Boston Corporation, 15 Broad

Illinois Central Railroad

investment by Canadian Insurance

memoranda

N. Y.

Earnings Estimates—Data—du Pont, Hom-

N.T. & S.A. and

—

Current information

—

Yamaichi Securities

memorandum

a

Star Cement

Analysis

—

National Lead

trends—Graphic pres¬
entation—Tyrus K. Davis Company, Inc., Kentucky Home

hours

—

Bulletin

—

Report—Harris, Upham & Co., 120 Broadway, New

Sunrise
way,

"I

will

Trask & Co., 25 Broad Street,

Pine Street, New

4, N. Y.

up-to-date com¬

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
and market performance over a 19-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
yield

Suggests Students Adopt Securities
Business As

Options—Booklet

on

E.' F.

Button partner

students

how to use them—Filer, Schmidt

to

Co., 120 Broadway, New York 5, N. Y.

consider

a

as

tion, products and activities of American Cyanamid Company
and its subsidiaries—Public Relations Department, American
Cyanamid Company, 30 Rockerfeller Plaza, New York 20,
N. Y.

Vermont

y

the Growing West

Booklet

—

EVENTS

the

on

to

the

E.

Hutton

F.

&

think"

"I

he

because every

area

added, "it is fun
morning the curtain

at 10 o'clock on

and
There

Investor—$1

per year

or

1922

the first time

and

I

was

able to tear myself away from
ticker

lunch

for

about

was

that is important in
the world is important to know in
the security business. •-"I-think
cause

much

Quality Stocks

in
or

it

is

•

a

few of

Over

many

The

G.

stocks with long dividend and earnings records
and

AVON

-

.

Yrs. Cash
Div. Paid

PRODUCTS

—

.

31
22

_22

—

Sold

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

74

Trinity Place, New York 6, N. Y.

H An over 2-2400

business

as

a

career

during the first day, June 16, of
their
/

INC.—. 24

_

G. D. SEARLE

Bought

securities

'

38

BAXTER LABORATORIES,
DICTAPHONE CORP.
GRINNELL CORP..

Philipp H. Lohman

briefly to the students about the
;

.

.

Loeb..

Company's new brokerage office
in
New
York
City and talked

top-drawer management.:

•

M.

summer

^course.

The

visiting group
participating in
course -dealing
with

of students
six-week
the nature
and operation of securities mar¬
kets and security analysis, under
the direction of Dr. Philipp H.
Lohman, Chairman of the Depart¬
ment of Commerce and Economics,
University of Vermont at Burling¬
ton, Vt., which is being presented
in
New
York
City as a joint

are

a

pays

off in two

ways.




>

Teletype NY 1-376-377-373

!

outing at Sleepy Hollow
Country Club; Scarborough on
the Hudson, Scarborough, N. Y.

June 27, 1958

?•': Syndicats
-Nassau

C

(New York City)

outing at
Glen

summer
o

untry Club,

Cove, L. I., N. Y...
June

.

"

'

>

of New

York

annual

outing at

.Morris County Golf Club, Con¬
vent

Station, N. J.

:

27, 1958 (Philadelphia, Pa.)
Philadelphia
Securities Asso-

June

You get

paid for what you do as you do
in
any
other business, except I
think
success
pays
off
more.

27, 1958 (New York City); "

Municipal Bond Women's Club
.

ciation

.'

annual

Overbrook

.

outling.at tho
Club,
Bryn

Golf

Mawr, Pa.

;

Secondly, you are dealing, with, June 28, 1953 (Chicago* 111.)
money and profits and if you have
Security Traders Association ol
any savings or an inheritance or a
Chicago summer golf outing at
loan, you can if you are good at
the Woodridge - Country Club,
it get a much greater return from
Lisle, 111. '
y:.
their being part of your vocation
June 28, 1958 (Los Angeles, Calif.)
than if it were just an avocation.
California
Group,
Investment
.

:

Demands Higher Integrity

work
one

in

can

you

Wall
be

a

can

Street

real

be
=

proud

because

success

Annual Conference,

to

ta

no

in Wall

July 11, 1958
-

Street unless their integrity

Association,.. Seventh
at the San¬
Barbara Biltmore. Z

/Bankers

•
•

think

"I

is of
ranks

(Detroit, Mich.)

:

:

Basis Club first annual summer

outing at St. Clair Inn and Coun¬
of New York
financial the highest. People's money
try Club, St. Clair, Mich. .
\
community and
the University very high in importance to them
during June 16-July 25, 1958. The right next to their health and help¬ Aug. 21-22, 1958 (Denver, Colo.)
Bond
Club of Denver-Rocky
first summer program was held in ing them conserve or increase it is
1950 and has been continued every a very worthwhile undertaking. In
Mountain Group IBA 24th an¬
nual summer frolic at the. Co¬
summer thereafter.
another way, financing the growth
lumbine Country Club,
Mr. Loeb told the students they of the country is equally impor¬

venture

.

.

~

; :

be¬

security business as
more than any other you

plenty of pitfalls, practical
and psychological.
"I think it is rewarding. In fact,
it

'

;

York

1

are

Counter

annual

Lakepointe

(New York City)
Investment Association of New

•;;/

*•-.

challenging

the

have td be good to succeed. There

and position—

at

Country Club.

the

1936.

Everything

Fbr Financial Institutions-

Detroit

of

June 27, 1958

a
I
started in this business about 1921

Exchange, 86 Trinity

(Detroit, Mich.)

outing

summer

a new

changing show.
dull minute. I think

isn'tV

Which ASE Stock Group Broke the 1957-58 Recession Barrier—

represent

Field

Investment

In

security business
because it is just plain fun—it is
June 27, 1958
challenging—it is rewarding.
Bond
Club

constanly

'

;

should "like the

Development Department, Dept., 7, Salt Lake City 10, Utah.

The following—which we trade

where

our

COMING

future vocation.

goes up

Discussion in June issue of American

know

Career

a

served—Utah Power & Light Co., W. A. Huckins, Business

—American Investor, American Stock

I'll

or

point of
be glad to try and do
to

organiza¬
Host, Gerald M. Loeb welcomed
the "Economics of Capital Forma¬
tion" Class of the University of

Treasure Crest in

the most

the best I can."

advises touring University of Vermont
the opportunities and possibilities of

Wall Street

This Is Cyanamid—Booklet of information about the

y;/.

want

Bank, 18 Pine

Street, New York 15, N. Y.

iinclude

will

and

answered in that course

view,

G. M. Loeb

a

However, if you have any ques¬
tions that you don't think will be

V- ■;)■//:/

you

4, N. Y.
Petroleum Situation—Review—Chase Manhattan

.

avoided

your

prominent speakers in Wall Street
on
every phase of the business.

Co.—Analysis—Joseph Faroll &

Co., 29 Broadway, New York 6, N. Y.

obviously
to

come

weeks

Heller & Co., 30

York 5, N. Y.

Yale & Towne Manufacturing

have

mind because
after all today is just the begin¬
ning of a course that will last six

New York 6, N. Y.

Tcnney Engineering Inc.—Analysis—Stanley

60-hour week what it/
three
years
to do

a

take

great many of the questions that

Haupt & Co., Ill Broad¬

Supermarkets—Report—Ira

more

normally.

Street, Denver 2, Colo.

Witter & Co., 45
Calif. Also available is

of

would

Merck & Co.

Company, 828 17th

Pubco Petroleum—Circular—Boettcher and

N. Y.

you -

you

years

Bache & Co., 36 Wall Street, New

Pepsi-Cola General Bottlers, Inc.—Analysis—Straus, Blosser &

Manufacturers' Inventories—Analysis—Dean

Over-the-Counter Index—Folder showing an

after

limitations be

put into it the less
years
it will be reaching your
goal. You can accomplish in two

McDowell, 39 South La Salle Street, Chicago 3, 111.

Market Prices—Analysis—Spencer

only

your

ing to climb.

Harris, Upham & Co., 120

—

5, N. Y. Also available is a bulletin on

York

Louisville 2, Ky.

Montgomery Street, San Francisco 6,
a memorandum on Monterey Oil Co.

and

satisfied to level out and stop try¬

Preway Inc.

on

public National Bank Building, Dallas 1, Tex.

New York.

Life Building,

first

learned

have

Inc.—Memorandum—Sanders & Co., Re¬

Murray Co. of Texas,

Ill Broadway, New York 7,

Kentucky Derby as an index of business

&

that to later in life. Shoot for the

Broadway, New York 5, N. Y.

Company of New York, Inc.,

Stock

what is offered in pensions. Leave

Sul¬

"Also remember this—the
Lone

Max Factor.

New York

Also available are

Mich.

moon

& Company, 31 Milk Street, Boston 9, Mass. Also in the
same
circular are brief analyses of American Seating and

York 5,

early years of work
a chance and try to
your
own
measure.
Don't
especially look for a safe job or

Koehring

sey

Stocks

conclusion," Mr. Loeb stated

your

take

System—Memorandum—Wm. C. Roney

Michigan Bakeries Inc. and Port Huron

on

continued
" *

give yourself

Company—Report—Loewi & Co. Incorporated, 225
East Mason Street, Milwaukee 2, Wis. Also available are re¬
ports on Basic Products Corporation and Bank of America,

Stocks—1957 earnings comparison—

Laird, Bissell & Meeds, 120 Broadway, New York 5,

Latest Field

"In

"in

phite & Paper Co.

Street, New York 5, N. Y.

Japanese

reports on

Co.—Analysis—Peter P. McDermott &

Co., Buhl Building, Detroit 26,

&

a

be done.

can

Equities benefit from
growth and prosperity.

Co., 42 Broadway, New York 4, N. Y.
Interstate Motor Freight

best that

for the

are

Corporation—Analysis—Reynolds & Co., 120

Stock

Broadway, New York 5, N. Y. Also available are
Singer Manufacturing Co. and Lerner Stores Corp.

"Eligible Book"—Compilation of preferred and common shares
listed on the Toronto and Montreal Stock Exchanges, con¬

Industrial Average

Industries—-Analysis—Halle & Stieglitz, 52 Wall Street,

Dresser

"

Expansion and the Future—Study—Blunt
Simmons, 208 South La Salle Street, Chicago 4, 111.

Fire & Casualty Insurance

Canada.

Company—Study—Robert
Co., 210 West Seventh Street, Los Angeles 14, Calif.

H. Huff &

Knowles & Co. Ltd., 25 Ade¬

Industry

sidered eligible for

Limited, 44 King Street, West, Toronto 1, Ont.,

Connecticut General Life Insurance

Toronto, Ont., Canada.

laide Street, West,

avail¬

Letter;-.

Canadian Market—Bulletin—Ross,

-:yyyyy:yyyy^yy
*'
Limited—Analysis—Burns Bros. & Com¬

Combined Enterprises

Burnham and

New York 5, N.,Y. Also

Company, 15 Broad Street,
able is current Foreign

Chicago

—

what

shows

funds

mutual

in

growth

service and a proper sales
point of view will do. There is no
reason why this growth should be
confined to just this one section
of the security business. More and
more people
are getting to know
that currency fluctuates and that
the most safety for savings lies
in splitting between deflationary
hedges like cash or dollar ob¬
ligations and inflationary hedges
such as equities. Neither always
gives complete protection but they

ing, Little Rock, Ark.

Monthly investment letter

—

will

proper

City of Little Rock General Obligation Library Improvement
Bonds—Bulletin—W. H. Satterfield & Company, Boyle Build¬

C.

N. W., Washington 7, D.

View

Bnraham

of

the

but

and it

there

is

time be realized. The great

analysis of Fafner Bearing Company.

planned 'new uranium-milling capacity to be allocated by
AEC, and developments affecting Algom and Pronto Ura¬
nium Mines—Atomic Development Mutual Fund, 1033 Thir¬

should

we

as

potential

.

.

-

much

Company—Analysis—Purcell & Co.,
50 Broadway, New York 4, N. Y.
- v///
.
Atchison, Topeka & Santa Fe Railway—Report—Thomson &
McKinnon, 11 Wall Street, New York 5, N. Y,;
Boston Insurance Company — Analysis — A. M. Kidder & Co.,
Inc., 1 Wall Street, New York 5, N. Y. Also available is an

security business is

We haven't
growing in all directions as

growth-v industry.

been

Gas

Louisiana

Arkansas

"I think the

a

v'

.

<

(William H.

safety.;"'

national

our

Potentialities—List of eight stocks with

Yield and Appreciation

higher standard

a

living and it creates jobs but
perhaps above all it contributes to
of

of Ebasco Services, Giant

Volume

187

Number 5754

.

.

.

The Commercial and Financial Chronicle

(2861)

The Immediate and Longer Term
Economic Outlook for Oar Nation
By WILLIAM F. BUTLER*

presage upturn
business activity before the end of the current
year.
Mr.
Butler anticipates revival in business
investment, after we

fidence

New

in

York

ahead and

years

City's

future

we

have

ments for
I

three major

set

myself
to

propose

on

deal

assign¬

this occasion.
with

first

immediate

business
the next year.
Then I'll turn,
r

the

full

expresses

outlook—say

its

briefly to the
longer,
term
economic
look
for

out-4^

ment and autos have also

./

our

nation.

Final-

ly, I'll

work.

try to '

indicate
the

;

The Leveling Process

-

With

■

some

of the general

\

r

massive

inventory read¬
with declines in

a

justment, and
autos, plant and

signifi¬

been at

•.'{•'/

yy.:

•

what

of

cance

this

now,

more basic and
intractable forces presented by the
declines in business fixed invest¬

•

equipment,

ex¬

ports and Federal expenditures, it

my

of

our

of

of

major

recessions
an

are

econo¬

but serious and prolonged

—

not.

are

avoided if

we

They

can be
wise policies.

pursue

By "we," I do not mean just the
government. Only one-fifth of our
production and one-ninth of our

jobs

are provided directly by gov¬
ernment. Private" action—in terms
of prices,
better values in the

marketplace, wage policies, re¬
search, credit policies—must play
a
major role in promoting re¬
from

covery
-

recession.

a

a

recession

period. One is to

ease money and
credit. The other is to cushion the

economic

is

ity

The truly remarkable fact is that
these forces
have not led to a

Federal

major downward spiral. The busi¬
ness
recession, while already more

rates

~

Before

at-

tempting
look

William F. Butler-

to

ahead

it

is always useful to look at where
we

are

at

and

now

our

present

how

we

arrived

posture. -As

you

all know, the nation is experienc¬
ing its third postwar recession in
general business activity. The de¬

cline

has

than

already carried further
the

was

1953-54."

'What

case

1949

or

'

recession?

simple answer. Reces¬
sions usually are brought on by a
no

number of factors.

tory shows that

no

Moreover, his¬
two recessions

alike.

are

To

the

basic

for

the

current

you

forces

have ta go back almost four
When business
emerged

years.

the

from

1953-54

production

recession,

and

rapidly,
most
businesses were short of capacity.
Businessmen set out to expand
capacity

rose

not

to

only

match

the

normal growth in the economy but
also

to

provide some margin of
excess capacity to handle peak de¬
mands. Thus, business investment
in

plant and equipment rose
between 1955 and 1957, a

new

40%

dramatic gain.

expected.

In the

-

economy

our

ahead

at

an

rise

as

postwaij period

has

been

average

a

moving
n"n u a 1

growth rate of 4%, after allowing
price changes. Yet we did not
achieve the 4% growth in 1956 or
1957.
Most of the gain in dollar
for

inflation — con¬
sumer
prices rose 6% between
early 1956 and the end of 1957.
sales

reflected

The lag

in sales became increas¬

ingly
apparent
as
we
moved
through 1957. The auto and hous¬
ing

government moved
to -reduce defense spending, and
defense orders were cut 50%.
crisis. And the

With sales

lagging, and capacity

increasing, most
that they

industrial

production

dropped

50% in six months.

Moreover, the signs of a level¬
ing in business are now beginning,
appear. Retail

sales, except for

autos, have held
the

of

rise

in

well. Despite

up

unemployment,

families have

our

increased

At

under

pressure.

importantly.

Thus, the
and credit to support a re¬
is being provided.

the

time, the increase
in unemployment insurance pay¬
ments

same

and

old

age

pension

pay¬

95%- ments, together with the decline

much

as

covery

still

same

funds

money

on—this

now

and

help

will

evidence—

will

any

ward

pressures

at

annual

an

greater

than

the

on

Currently, we're

economy.

using
rate

our

up

$9

goods
billion

production.

Longer-Term Prospects
To turn to the

might achieve a recovery reason¬
ably soon, say before, year's end?.
In

judgment,

my

factors
an

this

seems

following

to

the

to produce
business curve

achiever an
nomic gJMSwth
in

in

in the next six months.

longer-term out¬

to

nation, face

operate

could

upturn

the

look, it

the

that

me

the

The

steel

unparalleled'
and;

Ours

been

growth

economy.

always

a

.

(2)

Private
will increase
are

*

purchasing

as

some

increased, and

expenditures
lie works

power f

wage rates'

government*

as

rise;

decline

a

sibility.

yj

stimulus is

Efforts

on

play

such

pick-up in

ing;

V

/

.

an

:

■

smooth and

fluctuations

trend.

But growth

a

:

-

of

increase

our

production
last

buy-

I

:

could

gross

million

ingot

of

tons.

billion by 1967—a rise of almost
50% in ten years.- And I believe
it should be possible to
exceed
that growth
rate, if we adopt wise
policies.
* ■

A program to;
encourage longunlikely. The marriage rate
term growth is contained in the
dropped> more
than
10%,'
older families may be re¬ recent report issued by the Rocke¬

and

luctant to

move

to

and

new

expensive quarters.

>

feller Brothers Fund. This

more

1

y /

;

prepared

guished

For these reasons,

by

a

,

back

began to
steel

steel
use

it is my per¬
social and economic problems the
opinion that business ac-.
nation seems likely to face in the
will turn up before the.
next 10-15 years. It'recommended
end of the current year. This up¬
such measures to promote
growth
turn should be followed by a re-,
tivity

vival

in

business

investment

Continued

in

on

an
offer to sell nor the solicitation of an offer to buy
of these securities. The offering ts made only by the Prospectus.

■: $5,000,000

Company

July 1, 1958

Due July 1, 1973

v;

When

+

inventories. The
rate

sank

//

; ; ; ;

;

$2,511,400

5% Convertible Subordinated Debentures

below

50% of capacity—while steel

Price 99%%
Plus accrued interest

orders sharply and

operating

y-y

-

4%% Sinking Fund Debentures

autos,

up

con¬

Dated July 1, 1958

sumption dropped to around two-1

Due July 1,1973

thirds of capacity. In the process,
steel inventories have been cut in

The Convertible Subordinated Debentures

are being offered by the
the holders of its Common Stock for subscription, subject
to the terms and conditions set forth in the
Prospectus. The Sub¬
scription Offer will expire at 3:30 p.m., E.D.T., on July 10, 1958.
The several Underwriters may offer Convertible Subordinated Deben¬
tures pursuant to the terms set forth in the
Prospectus.

half.

Orders have already begun
pick up. And the steel operat¬
ing rate should pick up rather
sharply
after
Labor
Day,
and
to

the

face

same

sometime
the year.

general about-

to

in

could

inventory buying policies
help bring the decline in

business to
The

A

way, a

Company

a

Subscription Price 100%

halt.

Adjustment

Process

leveling of the business

curve,

Copies oj the Prospectus
•

.

-

present level of production for

long

as

six months.

as

may be obtained in any state from such of the several Underwriters,
including the undersigned, as may lawfully offer the securities in such state.

A. G. Becker & Co.
Incorporated

June 25, 1958

Report,

of distin¬
reviewed
the

group

citizens,

sonal

appliances
and other steel-using items began
to decline, steel inventories were
clearly excessive. So purchasers
cut

national

expand
from
year's$434> billion to $642
-

seems

the point. A year ago steel inven¬
tories at all levels ran to some

production

/

annual growth trend." At this rate

important part in

:

the

the domi¬

•'

.Vf

In the postwar period total pro¬
been-following a 4%

pos¬

the

consumer

,i:

even—there
around

was

duction has

part of
business to provide better values
a

not

were v

defense and pub-; nant characteristic.

on

increase in " consumer
expenditures large enough to pro¬
vide

was

The Mansfield Tire & Rubber

Dated

has

(1) The inventory adjustment In the long period from 1870-1930
will be
completed, eliminating the total national output increased
heaviest downward drag on
along an average growth trend
pro¬
duction;
ry;.v - ,■: •; c :• •.;
" of 3% per year. The upward path

So

illustrates

eco¬

development

ahead.

:

situation

in

decades

long

production must rise.

we

opportunity

Alew Issues

as sales hold up, this rate of
inventory liquidation can't last
long. If the rate of inventory cut¬
ting slows down, new orders and

more

recovery.

problems that might well be
termed intolerable. 4
What signs are there that we

the

gues

be

most people
expect.
how the picture

see

This advertisement is neither

provide

* " :
Av
addition, the very magnitude
inventory adjustment ar¬
for some easing in the down¬

In
of

from

income

' *,
autos, prices and inventories. The
from adding process of making these adjust¬
ments will take some months—so
to inventories at a $3 billion an¬
nual rate in-the third quarter of we may bump along at about the




present

upturn

pose

-

by Mr. Butler before the
'Realty Foundation of New Yok City,

of

the

income today as a year ago.
Government spending is slated to

Actually, the shift

address

basis

that

more

to

by

time; it is possible
—though not highly probable on

or

they had planned while most significant, would not
inventories were mean an
early end to the reces¬
high in relation to sales. So busi¬ sion. We still must work
through
nessmen
set about to cut back
readjustments in business invest-,
capital expenditures and reduce ment in new plant and equipment,

An

a

full recovery will be in
place
the second half of
next year.
At the same

We'll have to

time, the availability
seeking investment has

mild

1937-38—when

as

ity in 1957 than
In addition,

*

to

1959,-perhaps around
mid-year. Thus, it is possible that
the ingredients
necessary for a

vigorous than

an

of

relatively

for.

inventories.

moved

the

plant and equipment
starting

is, rather,
to
promote
a
viable
recovery. develops in the next few months
Economic growth is the normal before we- can
make
dogmatic
situation in our nation—an ex-; statements
about
the
character
tended period of stagnation would and the
strength of the

would

:

recession,

has

leveling,
It

At the

businesses found

had more excess capac¬

Reserve

decline.

past downturns

the:

disappointing
from might possibly top 80%
in the fourth quarter of
Suez In

industries had

years. Exports turned down
the peak reached during the

current

the

new

9

sometime in

the

not

has

26-28

However, sales failed to

the

to

a

is

is

that

recession,

decline in private incomes.
In

objective

our

merely to achieve
end

Recovery

structure

than

increase

see

made

downgrade.

However,

for

downturns in 1949 and 1953-54, is
still far from as serious as such

severe

jobs.

-

the

on

Forces Making

(4) Housing should respond to
easier; credit, though a sharp rise

add

Causes of Current Recession

that business activ¬

been

power

policy of aggressive ease. Interest
have
already declined
sharply,
and
the
interest
rate

to

the

caused

There is

in

wonder

has

purchasing

and checking the decline in
pro¬
duction and employment.

(3) Ah

However, government does have

two responsibilities in

trends may be

no

"built-in stabilizers" have
helped
in maintaining

as

unraveling

periods

Moderate

recessions

for New York.

■

of

necessary in our sort of

justment.; Yet the

*

-

sort

past

slumps.

two-thirds of the decline in indus¬

Up to

One

liabilities, has been operat¬
maintain.. private income
taxes. Thus, the
so-called

to

after

the

economic affairs that charac¬

our

cutting them' at a rate
billion now accounts for

trial production.

advance.

the

terized

has been chiefly an inventory ad¬

„

renewed

avoid

con¬

despite

prosperity

$9

To

ing that will permit us to accept
such necessary adjustments.
At the same time, all groups in
the
community
must
work
to

last year to

of

accidents.

problems is to achieve the degree

inability to share in nation's general growth in recent decades.
I

avoidable

of economic maturity in our think¬

achieve

can

ing

contrary, they bring about needed

a

bump along at present level, in new plant and equipment start¬
ing sometime in 1959—perhaps mid-year—and expects that
the ingredients necessary for a full
recovery will be in place
by the second half of next year. Turning to longer-term pros¬
phenomenal growth in the

necessary func¬
free and growing econ¬

which the groundwork is laid for

in

pects, the Chase Manhattan economist states

in tax

certain
a

They're not just unfortunate

omy.

and

real sense, recessions

very

perform
tions in

production, investment, prices and
debt. In this manner they serve
as a period of consolidation
during

believed to

reasons

a

readjustments in such elements

Vice-President Chase Manhattan Bank, New York
City

Banker-economist reviews

In

,

'

page

31

The Commercial and Financial Chronicle

.

.

.

Thursday, June 26, 1958

(2862)

10

Growth of Consumer Credit

portance of the bills passed at the
1958 session of the Legislature, the

and

prepared

Legislation in New York State
Chairman, Committee on Instalment Credit,
New York State Bankers Association
,

and others have
later effective dates, such as July

proposals
legislation,

Place Time

indirectly
affect the
handling of
credit by the
commerci a 1

this

in

State.
the

been

case

during the

was made, to review the
conclusions reached. As a matter

and the
prospects are
years,
for

in

ade¬

In

a

have helped
instalment credit develop and mature into a sound, integral part of
the economy. It has become a
summarizing the author's views of force for economic stability and

"The Affluent Society," by Professor John Kenneth
Galbraith, of Harvard University,;
the "New York Times" reyiewer,
book,

national

our

safety controls which

economic problems,

broad banking service at

the com-

(quote) "The second problem munity level,
a key method we use
There is
ample evidence that
an
ever-growing de¬
the commercial banks of New
mand for ever-growing production
York State are actively and
—namely, instalment credit."
soundly providing this important
banking service. To assist in acParalleled Growth of Credit
complishing that result, several
And GNP
months ago the Instalment Credit
Well, the facts are that instal¬ Committee prepared and distribment credit has grown with the
uted a leaflet entitled "What You
economy, and vice versa.
If ever Should Know About Consumer
there were a "which-came-first"
Credit
and
Instalment Loans."
problem, "the chicken or the egg," _
.
7
.
.,
the
relationship
of
instalment
hundred copies were
credit to the total economy is it.
ut.e<* *ree
each me,mJ?er hank,
with an arrangement for overOur gross national pro d u c t
printing the bank's name on larger
which in 1952 was $345 billion, inQuantities at low cost for general
creased to $434 billion in the year distribution
purposes.
The re1957. During the same period, new
sponse
to date has been very
of
instalment
credit
extensions
gratifying. However, it is possible
rose from $30 billion in 1952, to
for more banks to take advantage
says

arises from
finance

to

distrib-

.

,

_

indicates

a

of

fairly

steady

relationship of comparable growth,
the

as

opportunity

tection

to

the consumer,

fdit outstanding
outstrndL

credit

nabonam
nationally

foJ

for
all lenders totaled $32,932,000,000;
while a year ago it was $31,786,-

rangements for personnel
and
the
pUrchase of consumer

With

to legislation, we
last year on the bills
passed at the 1957 session.
One
crease of $2,362,000,000 in the pre¬
such law, so-called the "all goods"
vious 12-month period.
bill, established ceiling rates on
Of these totals commercial
credit service charges on retail in¬
banks
held
$12,421,000,000
on
stalment sales and financing of
April 30, 1958, and $11,981,000,000
on April 30, 1957.
An increase of services and goods, other than
motor vehicles. This act did not
$440,000,000, as against an increase
become effective until Oct. 1, 1957.
of $996,000,000 in the previous 12Nevertheless,
it
was
amended
month period.
The banks' share
**
was
ameuueu
000,000. This was an increase of
$1,146,000,000, as against an in¬

the

total

was

about 38%

regard

reported

both

quick trip back

years.

,In the Second Federal Reserve
District

we

learn, from the Fed¬

eral Reserve Call Reports, that to¬

It

is

Legislature.
~
""
continuing
interest, and the con¬

member

retail credit industry's

banks,

were

$2,148,000,-

March 4, 1958, and $2,030,-

—

as

well

as

Adams will have to resign.

headlines would

•A report by Mr. Painter to the 62nd
Convention of New York State

Annual

Association, Lake Placid, N. Y.t
June 11, 1958.




-

of the

have assisted

pleasure

and

confident

in self-regulation

own interthat the

—

hP°HMHvf.?irhei:0nSUmer should
clearly defined.

be

;

Because

of

the

extent

and im-

and
/

is

happens that it looks that landing troops in Lebanon

so

we are

It would be no different from what

it this way: Our intervention would certainly get Sherman^
something like this, I don't see :

let's put
out

of the headlines and without

how he

can ever

:

get out, unless he resigns.

T?

—

Verner Kraft Draws

Albert R. Yeatfs Joins

Third Queen

D-I,/.. B P.

AOIOtt, Baker & Albert
CO.

Vice-President of
Angeles,
announces
that he and his wife
of Amott, Baker & Co., Inc., 1420 Jennie are the proud parents of a
Walnut Street,
as
a
Registered daughter Tamra, > to be T called
born
June
16,
1958.
Representative.
Mr. Yeatts was Tammy,
is
the
Kraft's
third
formerly with Langley - Howard, Tammy
' '•
Inc., and prior thereto with First daughter. • v
PHILADELPHIA, Pa.

Verner Kraft,

—

Oscar F. Kraft & Co., Los

Yeatts, Jr., has become associ¬
ated with the Philadelphia office

R.

Securities

Co.

J:

Harry Schaub, Inc.
25th Anniversary

a

my successor

NEWARK, N. J,—HarryP.Schaub,

JJ&d WteT^Md'

Roosevelt did in the case

Black or what the Truman Administration did in the case
Indeed, I can see far more justification of our intervene,
tion in Lebanon. You can hardly see that we can escape it. But;
of Korea.

year.
a

^

y

of Hugo

Inc.,

744

Broad

Street,

is

cele¬

brating its 25th anniversary.

Beil & Hough Add
(Special to The Financial Chronicle)

.

ST.

PETERSBURG,

John W.

Florida,

Deitz has been added,

Hough, Inc.
350 First Avenue, North, mem
bers of the '.Midwest Stock Ex

the

staff

of

Beil

&

change.

Forms R. D. Wilkes Co.
A. M. Kidder Co. Adds

-

est

about.

going to have to do. And far be it from me to
suggest that our Government would do that just to erase Sherman
Adams from the public mind.
But it will be an added incentive
to political minds, and political minds generally believe that the
end justifies the means.
v.

privilege for me to serve in this
canacitv these nast several vears
am

It

exactly what

in the work of the committee dur¬

been

1'

*:'

-'r;

-

immediately become focused on that event

Sherman would become forgotten
'

Instalment Credit Commission and

has

■■

hook,;
headlines, than to land military forces in Lebanon? The

out of the

Also, on my behalf and yours,
thanks to the officers of the Asso-

It

1

Well, what better way is there to' get Sherman off the

a-half

lative matters,

ing the past

-

The newspapers will keep
up a continual harangue.
Investigators of the House Committee
on Interstate and Foreign Commerce are still trying to rake up
more stuff on the hapless No. 2 man in the Government. -There is
general agreement in political Washington that sooner or later

strongly

the members

*

him. President Eisenhower has said the
him, that he has complete confidence in

crats, to the tune that Adams must go.

report would not be com¬

and

with

Adams and needs him.

important part
The com¬

their attorneys who

to Mr. Adams and his vicuna coat. His traducers

after

But the President can't close the matter up. There will be
attacks in Congress, on the part of both Republicans and Demo-

Association, for his help in legis-

the

"rules of the road" for maximum

Bankers

closed

4,

of administrative and regula¬

tory authorities

on

keep

is

development.

elation,

we come

to

matter
=

Dean Acheson had
outside our. perimeter.

awful way to show

an

was

Now

mittee in its work—to A1 Muench,

was a and j

indicative of the

legislative
cern

.19.5U8to the

tal instalment credit holdings, by
000

It

durable g o ° d s, by distributing Bob Watt?, Jack the general sup¬
Maeklin and the
office
and
^ o£ the leaflet
'office staff, Dorsey, counsel tosupstaff, and the general the
port of Leo
Credit Protection for Consumers

chafing under Repub¬

State

was

intend

ar- plete without an expression of
loans thanks—for assistance to the com¬

tional product
in each of these
two years.
As of Aoril ?,() 1958 instalment

of

This

of

that Korea

support by performing soundly for
the good of the general welfare as
heretofore.

and the

f

entrance into that was an impulsive move caused by the

Secretary

will require a continuing program
' *
for education, self-control and
leadership, to maintain a high
level of public confidence and

commercial banks' interest in pro-

f

There is every reason to believe

that the Truman Administration was

mercial banks of New York State

publicize

to

*

pro-Communist. Only a few months before
announced to the world
For weeks after our en-?
trance, Acheson's stooges would be around the National Press Club
arguing that our imbroglio disproved the charges that Acheson
was friendly to the Reds.'
' "
,
,
"Why, he was the main pressure for our entering Korea," they
would contend. "It shows he was not friendly to the Communists.'^'

*

instalment of the extensions availability of sound financing
credit gross na9%

about

were

this

things.

our

and healthy
consumer
instalment

of

that

in

interested in bigger

lican attacks that it was

substantial

credit will play an

Ickes had foreseen, it took the spotlight off. Hugo ;

fact

,

$42 billion in 1957.
This

volume

as

that

As the economy works upward
Present levels to unprecedented heights in the next several
a

i

to him.

When Roosevelt returned to Washington the correspondents K

Now, take the Korean fiasco.

that other senior officers,
necessarily
connected with
s0-called retail services of the

years,

.\>Well,

were

urge

bank, enroll for the day-and
pr0gram; *
4
'■■■;

Woodrew 'Wilsoa
Now, he
pitched headlong, much to the consternation of his closest

Black.

responsible for instalmeht credit at each bank at¬
we

got

advisers, into the European maelstrom.
f

held our sixth

clinic,

out to the newspaper1
accompanying him, of whom' i ,wasidr^:^4;v'

had

officer directly

this

;"J

President's speech

The

the wily European politicians had hornswiggled
into European affairs. They would never do it

opportunity to review current
matters of interest to bankers and
others, relative to the handling oi
consumer instalment credit by
commercial banks. The next clinic
*s 1° be held in New York City,
at the Hotel Commodore, October
23
and
24. In
addition to the

not

,

r

.

commonplace speech.T.'^J'";:;
Carlisle Bargeron
him to change his first para^'";
graph to demand that the aggressor nations .be
i '•
quarantined. From Roosevelt, the isplationisti. this: was.his, first s 4warlike utterance.
Up until this time, his attitude had been that > '

Credit Clinics Popularity

tending

•

idea to take the heat off the. Black

an

Ickes

the office of Attorney-GeneralLefkowitz. The Attorney-Generalr
has taken prompt action against'
mal-practiees in retail trade. The
new so-called "bait advertising"bill to prevent misleading advertising, should aid in abolishing
practices that discredit the entire

Last October, we

member of the Ku Klux

It was a very

Protection in

-

on

men

has represented

retail sales industry.

a

I

episode.

where there has:

and

Frauds

sumer

However, it has been well demonstrated that there are built-in

review o£ the recently pub-

lished

/

had already been passed

The reason for* this broadcasting of instalment credit annual consumer credit clinic in
rahy be found in the pervasive use and an easing of terms, would be Albany. It established a new atof instalment credit in our econ- an aid to economic recovery.
tendance record, and provided an
omy.

;

Washington he would

him

compliance.

subject.

the

:

when, he returned" ;
have| to face some
200 newspapermen on this question.., As he ,/;;
came into Chicago to make a major speech, the
late Harold Ickes boarded the train and sold
'

to

Association on an advisory
committee to the Division of Con¬

urgings that a

strong

area

an

Your Chairman

fact, in the present period of
recession, there are, in many

interest in quarters,

in legislative

increase

'

-

Roosevelt = knew. that

.

*

the

of

Painter

te a d y

s

a

J. Andrew

available

be

country.

report

several

past

Not Advisable

Regulation W, was not then advisable. I mention this because there
has been no occasion, since that

has

This

that he had been

been much doubt, confusion, and
' reports of abuses elsewhere in the

*

c ons u m e r

will

in

tion

Selective Controls

Last year, we noted that the
f*
Last year, we
-fe", Federal Reserve Board, after an
exhaustive study of consumer inM stalment credit, at the direction
of Pr e s i d e n t Eisenhower, coneluded that special peace-time authority to regulate consumer instalment credit under
selective
credit controls, such as the former

which directly

'

%

„

Klan.;

Jt.1? ^.pFog5essLV_e^S^uf^^^w
York State to enact such legisla¬

about one-sixth of the

;

or

banks

terial

quate time to aid in

and
for

particularly
relating, to the

responsibilities
under this legislation, which will
become effective October* 1. We
may
anticipate
that applicable
regulations and explanatory ma¬

000,000

legislation

out.

Roosevelt the Great was confronted with a domestic
political problem similar to that now confront,
■
ing' Eisenhower. ' While, on a trip to the Far > n
West, Hugo Black, whom Roosevelt had- ap- .v i
pointed to the Supreme Court, had admitted y

transactions. The

national
centered total for commercial banks,

been

have

months,

me

In 1938,

Insurance has new

public support and confidence.

12

but hear

instalment' credit
Superintendent of

consumer

on

volume of credit that will
keep pace with economy's growth will require continuous
program for education, self control and leadership to maintain

chiefly on the study of

V

Legislation

handling of credit life insurance

level," and expects the increasing

the Instalment
Credit Committee, during the past

r

is

attention

Your

directed to the bills

draws interesting parallelism between , growth of
consumer credit and GNP*' notes
that peacetime selective
controls are unnecessary for what has become "a force for
economic stability and broad banking service at the community

The activities of

.

Now, when I say there is a relation between Suerman Adams'
vicuna coat and the crisis in Lebanon you will think that is absurd
-

'

Credit Life Insurance

Mr. Painter,

„.

October I.

1, September 1 and

steadily increasing legislative
the subject in N.Y. State. The head of the Committee,

credit developments and

interest in

By CARLISLE BARGERON

already have

Some of these laws

Bankers9 Instalment Credit Chairman reports on

New York
consumer

Ahead

?

become effective,

Bank, New York City

Vice-President, First National City

supplement
available

report, also are
at this convention,
this

to

Washington

members. Copies

of that summary, as a

PAINTER *

By J. ANDREW

From

of those acts

a summary

for distribution to

*

Committee has T

Credit

Instalment

NEW
Robert
a

at

BRUNSWICK,
N.
J.—
Wilkes is engaging in

securities business from

the

(Special to The Financial Chronicle)

D.

l379 HamUton of Robert • D.
Street unde?
firm < name

Wilkes & Co.

.

—Frank
has been, added to the

ST. PETERSBURG, Fla

offices
S.

Smith

staff of A. M.
400 Beach

Kidder & Co., Inc.,

Drive, North.

Joins Sills & Company
(Special to The Financial Chronicle)

Fla.—Nellie S. Gome
of Sills & Co.
Ingraham Building.
MIAMI,

has joined the staff

Volume

187

Number 5754

The Commercial and

.

Financial Chronicle
V*

'

-

.

Investment Aspects of
The Paper

(2863)

Notwithstanding

,

long pull, one
tirely complacent
that

Industry

By WILLIAM L. MOISE*

faster growth in paper

!

surveys'

return

net,invested

on

:^
,

•

mm..

At
be

v

-

,

used

the

word

,

include

to

paperboard

y

'

.

;

.end

products.
The general
framew ork

paper,
converted

-.

..

....

in

...

'

Company
fore that

.

pany's

.

making

demonstrated^ capacity
attractive return on inFapep meets tnese
-.than

more

aware

^

.

■

a

we are usually among
the first to be affected by a down¬
and among the first to re¬

Pnce« 15 cents

upturn."

•

I would say that the investment

aspects of the paper industry are
u.

"

tu

tion.

•

greatly by the service
aspects and the economic aspects

there

economists have

some years

remarked

.

.

suits
It

attention,

and

cultural

are

nf

not

naner

as

a

a

service.

It

con-

the printed word; it cleans,
drys and protects; it packages
everything
from
toothpaste
to
groceries
to
refrigerators;
and
once used, it is destroyed or dis¬
carded.
Every one is served by
day and yet the price

for all paper and paperboard aver¬

only about 15
cents
"pound—$62 for all the paper
ages

use

in

a

per
you

whole year.

.

Like

other services

the

in

eco-

nOrhic

structure, paper use tends
to resist the more severe portions
of any general business decline. It
is true that sales of the mills turn

early-in any business recesSiort due to the existence of large
inventories
at
all
commercial
down

levels.

Consumers^ merchants and

converters

ventories
can

can

for

live
short

off their

111-

periods!

and;

make do with low inventories

able

Institute

available

in

a

it

hold

and

profitable.^

i

Were^ completed

current

recession

Yet

both

agree

consumption
in

tons

than

of

I

is 40%

•

»

,«

1957.

That would

rate

of

tons

June

12, 1958.

of

to

Treasurer.v
New

York

State

also /

its

governing body, the
Council of Administration, for thre£
year terms:
Arthur S.
National

New

Hamlin, President, Canandaigua
and Trust
Company,, Canan-.

Bank

daigua.

.'

.

;

A. Leonard

Reid, President, Mohawk Na¬
tional Bank, Schenectady.
.-:y;.
"
Crandall Melvin
Dey C. Demarest, Vice-President, Bellport
National Bank, Bellnort.
'
George A. Murphy, President, Irving Trust
Company, New
York City.
; ;; .
-

.

somewhat

This

•; • •
;
The New York State Bankers Association
has

v

members 530

as

finaaicial

institutions including practically all of
the^ commercial
banks •-of the state, a number of savings
banks, savings and loan
associations, and investment banking houses. In addition it hag

associate

members located in
Alabama, Connecticut, Illinois, Mas¬
sachusetts, New Jersey, Pennsylvania, California, New
Hampshire
Some 14 foreign banks with
agencies
in New York hold
membership in the Association.
'
and the Dominion of Canada.

>

announcement is not an

The

offer to sell or a solicitation of an offer
Offering is made only by the Prospectus*

Central Illinois

in.

First

to

buy these securities.
.

:

...

'

Light Company

Mortgage Bonds, 4% Series due 1988

con¬

be

an -

Dated

July 1, 1958

Due

annum and

population increase.

Anything

like

that

"

growth

July 1, 1988

;

Price100.874%

is

to

bring more expansion,
employment and profits to the
pulp and paper, industry of New
England.
Fortunately, your timjjer resources will
support more
capacity and you have some advantages of proximity to large

eastern markets

mills

in

Also

you

the

Paper
por

a

return
been

as

The

compared with

south

have

and

far

ingenuity

west.

and

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

is

a.

profitably industry,

years, average
net invested capital has

10%

England
10.7%

,

an

number. of
on

and

of the value of research,

awareness

to 12%.

companies

average
were

Last

year

exceeded

HALSEY, STUART & CO. INC.

,

and

"

the "

SALOMON BROS. &. HUTZLER

companies
which apply that famous -Yankee

ingenuity to the making of

which
country buys.

the

& MERLE-SMITH
y

AUCHINCLOSS, PARKER & REDPATH

SHEARSON, HAMMILL & CO.
■

*

*

-

■

FREEMAN

&

IN

:

;

COMPANY/.

;

INCORPORATED

INCORPORATED

.

■

CO.

•

.

IRA HAUPT & CO.

•

WILLIAM BLAIR & COMPANY

CORPORATE D

:

R. W. PRESSPRICH &. CO.
*

.

WM. E. POLLOCK & CO., INC.

,

F. S. YANTIS &
.

/,:

STROUD & COMPANY

•

COURTS &. CO.

:

STERN BROTHERS & CO.

McMASTER HUTCHINSON
>

t

'

June 25, 1958.

&

CO.

STIFEL, NICOLAUS & COMPANY
r

.

INCORPORATED

MULLANEY, WELLS & COMPANY

PATTERSON, COPELAND & KENDALL, INC.

spe-.

whole

V DICK

RAFFENSPERGER, HUGHES & CO.

Keyes

Nashua,,

•

=

the

of the big fellows,

Dennison

and

s:



men

nearly three times the indicated

of capacity to 95% in :a short time..
They
This has occurred in the early Fibre

-

four

as

1

higher- '

million

rise of 5% per

Bankers

million*,

35]/2

in

average

49

J

was

:

New

w

elected

,

-am

elected

was

The

States

.

».

.

in

Company, Scarsdale,

$12,000,000

.

,

van,

it

•'

to have excess 14 companies with sales over
$100"^
But real-^ million averaged
10.7% return on
consumption
of paper
declines net worth. In New Eneland,
eightmuch less than in such heavy ill-,
companies, all under the $100 mi'ldustries as steel, lumber and gen-- ii0n
class, but substantial in size,
eral manufacturing. So when other averaged 8.5%
return—not as good,
business indicators show even a as the
big national companies but.
little new.life, the users of paper; still
quite respectable.^Three

Ej'arts of past business recoveries.-

will

.

,

■

set

United

while mills appear

begin to restock and mill produc-

While

race.

it

so

after *

-

had

about

1965 which

the

sumed

is

on

H

:

year/

the
.

|

//

Vice-President; and Howard N. Dono¬
President, Bank of Jamestown, James¬

town,

became

this

of

Nolting

(Special to The Financial
Chronicle)

'

elected

New

managers will endeavor
their position in the na-

''

manufacturing capacity.

tion schedules can jump from 85%

tional Bank and Trust

industry I advise confidence, and

is

to ;! cite

which

April

Garrett With

';

1

Convention, held in
Placid, N. Y., June 12. He succeeds Richard S. Perkins, ViceChairman, The First National City Bank of
;
New York; Chairman, City Bank Farmers Trust
Company, New York City.
J. Henry Neale,
President, Scarsdale Na¬

industry in New
vigorous, progressive,

is

al*e available for the paper indusby in a U. S. Department of Cornmerce study published in June of
^57 and in a new review of previous forecasts from Stanford Re-

certain

Dips Arc Not As Deep \

.

be

<

'

■.

State Bankers Association at its 62nd Annual

paper

money.

Industries';"-

Both studies

veys

paper every

to

for

:

Lake

and

w
.ng and .da
f' msiirance
investment trusts,
*.4ney:.Ji«^ me-.paper, industry.

search

com-

as

productivity

Vmty and a good Place to invest

authorities
who't are^
eminent,
knowledgeable and unbiased. Such

pur¬

is-generally characteristic of

Think7

well

are

business would be
happy with such a modest

comforting

for¬

President, The Merchants National Bank &
Company, Syracuse, was elected President of the New York

Trust

2*^5 \s agood industry to work
Sood^to have in your comrau-

inV.

Cites Objective Forecasts

massive in coverage,
repetitive in nature and are re-'
usable only by repurchase.
>
;

f0

decline:.

forecasting

was

Syracuse.

*?1Jilons *n

In,'business

He

Crandall Melvin,

problems

are

own

Corporation,

Street.

constant
and more

To those of you who are in the

governmental activities.

modity but

further

a

decline in their

sendees that they have small unit
:

consumption

not in the paper
verv

'

costs,

freight in-and-

Hional'^ competitive
1927,just. js n0

I think most businessmen who

ices include such things as electricity, water, telephone, education,--recreation,
transportation,
medical

was

Federal

New York State Bankers Assn.

414%. The industry is currently2- Jd'vyrtment
operating around 87%. of capacity. ,5. lcie?
+
Projkssionals who

the

steadily rising
share of personal expenditures absorbed by the service industries as
compared with expenditures for
the more tangible necessities like
food, housing, and clothing. Serv¬
on

were

1957 declined 3V4% from 1956 and
jn the first quarter of this 'year

to which Mr. Hinman has referred,

49

merly with Hayden, Stone & Co.

The 62nd Annual Convention honors Crandall
Melvin, Presi- '•
dent of Merchants National Bank & Trust Co. of

a

Aggregate

H.

.

pound and total- and
prospevs
cost $62 per person, there
certainly •
England,
is no economic limit on
consump-,
'.

•

influenced

The

and
used

paper

in

..

Mass. —Albert

Peek has joined the staff of
Stone
& Webster Securities

Syracuse Banker Elected President of

jonger safe Politically to say
JS.Xn'Stag0Tj*e» 250 jxiunds "("As. Maine goes, so goes 'the na1937, 340 in 1947 and 413 pounds.
(jon " we can
hope that as the
per capita last year. With averaee
,
industry of the nation grows

turn

any

;„y.

tho

rates.

to.preview. Two.EnglaMd
of

capita

per

m..the United Siatcs

iri-

'service

labor

ingenious

pounds

paperboard

spond to

paper, for

by per capita
England
phenomenal andal-

are

hundred

W. L. Moise

are

i.

re«?iwt

of the many other

and

startling

ways,

said "We

For

totals

measure,

recent

dustry and

r

,

both-in

:'*

He

healthy economic climate

a

growth and development.

National Competitive Race

growing; industry.. Trends
production
and consumption,

of

be-

holders' Meet¬

ing.

wage

fastest

com-

nn^

-eConomicai services. You

most

making has been called
•.fifth
largest and the* third

the

BOSTON,

con¬

Goldman,

out of the; mills needs
improvement with better

Paper

Annual Stock¬

.

ate

a

in net.

(Special to The Financial Chronicle)

'

.

repay all the help and
assistance you can provide to cre¬

,am6unts to one-eighth the cost of

an

..

and

Joins Stone & Webster

of

that

handsomely

one

In that

including

of. Inter- 1

man

is

0f return

other industries.

national Paper

manufacturers

say

of paper and
paperboard
in the six New
England states will

larger
as

decline

538

me

verters

/<> Place funds 'in ,New England paper industry'has
?: s^ronS.
^"-fallen behind the national average,
,-toriggl- growth, trends,
ar^strpn^./Transportation alone, which
in,,the prevailing economy, show

requirements

by

Chair-

.man,

the

research

members

^

Mr. John Hin-

,

this

One Major Problem

nation.. seeks

vested capital

a

.

statement

fact

of

companies,

33%

a

more

ingenuity. To
other
industries, let

small

and the

application of

industries

to earn

ready-

'made

.

■good promise ot continued growth
and have

for my discus¬
sion
came
to

hand

.

.

perience, knowledge and discnmi-

pulp,

their

and

will

paper;

and

mJc
■
-Investment funds tend to flow in
The long term investor .with
ex-_ channelg promising the best rates

.

.the/oqtsetcl; want to make

it clear that

the

Joins
major problem.
Sachs
FT.
WALTON, Fla.—James R.
Full New England
(Special to The Financial Chronicle)
participation in
Garrett
has
become
associated
this projected
expansion will reBOSTON, Mass. — Michael J. with Nolting, Nichol & Co. ot
quire a proportionate share of the Lenahan
has joined the-staff of Pensacola.
Mr. Garrett was for-*
huge capital required.. It takes
Goldman, Sachs & Co., 75 Fed¬ merly local manager for Feder¬
nearly $2 of investment in new eral Street.
ated Investors, Inc.
plant to make $1 of annual sales.

•

■

had

There

capital*r
^notes major problem to be
overcome;; and expects New England firms to hold their position in national
competitive race.
average

'

^

1

increase;

for
en-

^e

the

quarter

very

/England

■".> group,

>.

long pull. The Blyth official
objective, expert forecasts predicting
consumption than the rate of population

first

a

in their net income

■r

New

and expresses optimism about the
directs. attention to two

the

with

cannot
over

drop in
sales, the big $100 million com¬
panies reported a decline of 23%
;

Mr. Moise considers the investment
aspects of the paper Industry with particular attention paid to the New England region;

for

year,

Vice-President, Blyth & Co., Inc., New York City
;

optimism

the
■*'

11

r

The Commercial and Financial Chronicle
12

.

.

Thursday, June 26, 1958

.

(2864)

ding along, using what they have
"always" used, doing what they
have "always" done. If they only
realized it. they could change
their ways and cut their expenses
vastly. And, to repeat, I'm not
ago.
so help me, word forword, is what here
proposing that they each
There are now some 3,800 comhe said. "The guy had plenty of install a $10 million automated
panies making instruments and work on the steam locomotives, assemoly line,
automation for almost any difficulty we happen to encounter,
either as individuals or as a nation. A lew weeks ago I heard a
some 1,700,000 jobs, three-fourths
young man talking about his unof which did not exist ten years employed brother-in-law and here,

is a $9 billion industry—
industry built largely on those
developments commonly associated
with automation.
It is providing
today

an,

The Effects of Animation
HODNETTE*

By JOIIX K.

Westinghouse Electric Corporation

Executive Vice-President,

Pittsburgh, Pa.

industrial facilities may be one of the

Lack of automated

major

contributing reasons for our present recession, Westinghouse
executive maintains in pointing out automation cannot be

This is

ing devices of industry.

a

without

"survive"

v

trading nation, military power,

a

as

for

run

years

xhis tendency to make a scape-

near

future.

have

heard

of

our

As

There

the

here

reasons

,

...

.

—

.

,

finishedi^product Toe r- ing plant at Vicksburg, since all

of the

that has

Automation is a word

something
matic

for a

doing
the

name

Other

people
insist
on
complex

n
i s m s,"
"feedback,"

a

Hodnette

K.

John

"closed-

loop

control."

techniques

be described in one

z

-

.

jobs

-

J^naents

It creates far more

jobs.

and many

more

'

it displaces.

effects

<1

are

jobs "In the long run."-I disagree.
Take, for example, the element with this "long run" apology for
of time.
We are all strictly ra- automation.
supply of it—there

our

nothing

week.

a

But

..

to

us

„

tion,

of production

the speed

of the machfne
In
meehanizatfoi^or automation
ator

both

is

nf

onlv bv

wXtfZ
teustics.

machine

the

it^own
This

i«

nneratine

industries

new

real,
in

and

industries.

Rmitert

ehTrae

on

cent

per

per cent

had no main

.lnppH

nmir

\irilli

■

,

.

,

rip

■

Cuidn't rising' lt is

vou

„av"'vou

now estimated that industry has been using the slofig-■■.employment costs per man hour gan "Power - Up" to persuade

the

will rise nearly 6% this year. It is American industry to attain more

.

„ot

Tth7westinehoSse
isionm suite rf auto

j™

a

.

na-

(his

rti-

mid

has

virion

mimlmens
crown

u..i,
is

in

fm,n

2 7fi2
toss

in

This

n.ThlS
J 80%.
increase of

an

The pioduct

170%

about

over

(sti 1 quoti g)
efficient «,
ability with the

more

light-producing

amount of power cpnsump-

same

wonder that the New York efficient production,
"Times" has called this the bustFortunately, electrical
with a split person- faeturing has produced a

Mr"°

thr(-(inclusions of

■

relationship. Industry can use composed of static switching ar¬
various means to correct the im- cuits. The moving parts of conbalance. The
bargaining

table

is

ifictK

rpl

ine

p/i

,u

i„

t)U-watt lamp

1900

ii,

sells

ventional relay systems are corn-

for labor costs have risen far plex, hard to maintain, and wear
<hnri nvnH.,fHvifv
Annthmthan productivity. Another n,,t
out
after opening and
closing
research
and
development— some hundreds of thousands or

,,nc,
•

e

"

productivity. Another

■

enormous
economic forces
generatecj by discoveries in the
lor lougniy onc-ienin ot.ine cost
]aboratory. Still another means of
in
of the World War I C()-watt lamp correcting the imbalance lies in
..

lion.

manu-

revolu<>"*••
tionary technical breakthrough in
It is up to industry to do what the past lew years in one key
n <a" to retlll'n costs and prices area of automation. I refer to the
lo a morc "ormal, free market development of control systems
ness decline

the

me

ffeid

of new concents of mar-

f.po„0

millions of times. The static systerns, on the other hand, consisting
of magnetic amplifiers and solidhave
nave

state

devices,
devices

Darts

make and br

concepts ot mai paits, make a
problem is
of out,1 and require
1 s

""

But the basic

lowering

the

of

production,

a

circui

without wearin

almost no main
In our opinion, this cle

one

cost

moving

no

break

_

tenance.

Pulsion to aviation 7 T. anc
diiital computer to account
4°sSgspaceq perS unit snoke^of "ThTnoVuon'l^ic^
fe Westnghouse Alld the best way to do that, in Mng: If lifts the ceiling right of
Iiiventorv of goods-in° J" Lal?ip of this steady progress ,ln the situation that and methods use the possibilities of what intelli
,Dl4u1-sl°1 'Las cllmbed toexists, is to to ecnt ingenious and determine
mventoiy 01 goocts in
which
most
at- spite
mnehines

produced
proaucea.

vemence

process.is,cut lo a.minimum. '

there

is the

,

element of

Automatic

materials.

manufac-

makes
possible continuous
inspection and testing, both of the
materials in process and of the
components
in
final
assembly,

labor from

means

product of

a

nrm
uniform

mnro

nnv

more

rin_

end-

higher quality.

Fourth there

is

the

element

of

Automation often requires

17 times as many lamps daily as

he did at the time of World War I.

I have not heard anyone suggest

Let me lecall that wagon mak— that we return to the lamp manu—
was once a leacling industry in faeturing procedures of 50 years

faster
(>aj^

wherever

automation

be

economically

and

it

practi—

ago

■»

But the jobs lost have been
many

costs

caRy applied — is one answer to
in order to make more jobs, the problem of expanded capacity,;
but if we did, that 60-watt lamp. Hsing costs, and declining producnkAut
7
would cost you about &A 1A instead' }fon" 0
$4.10
of 21 cents.
The fact is that automation has
U. S. Industry Not Ready Yet

the South. Also, that a mere ten
decades ago there were some
1111 inn
10,000 /«hQrnnci1 hnrniM*c in true
charcoal burners ir»
this
country. Both industries are gone
replaced

possibl?

as low as we
face of rising

automaticity and increased jmpr0Ve operating efficiency.
productivity."
This is why I say that more and

ing

now.

the

ward

other."
^

in

et1

the

Kpt1fir

and

employment to an-

one

u"t

1

Employment

cases

in

removal of capital

the

tends

ture

money.

nrn

A

f.

Mr_ Delmar s. Harder created our

*
x
,
f
vance of technology. Back in the
Second, consider the element of early eighteen hundreds in EngAutomation requires lar land, the economist David Ricardo

space.

rhnf
That

two

We have expanded our produc-. in many of the country> major
t;pn)facilities tremendously since plants. What is it like m the meWpild War II.
Our economy is»dium - sized and. small^plants.

always have —since long before this cost reduction achievement

^MLproduced in a
J

Third,

based

too

/,

Now in general, of course, imb'yved operations and technologi- This price does not take into actal change do displace jobs, com- count the depreciation of the dotPanies, and whole industries. They lar over these years, which makes

the

simply that

means

in

established

suDer-

sneert^

.

«iml ivM»kn01

Xafd

be]ievc mc n j

The immediate

standard of living—are very

,.

.

now,

job-benefits of automation—aside
from all its other benefits to our

In mechaniza-

do.

..

making jobs

is

the short run.

in

ac¬

complish more in the time we
have, and that is what automation
enables

g'

lllat

_tlow„

,

autoiLtion

168

can

we

.

Th

do to increase

we can

available amount beyond

hours

too

than

"est long-iange hope lor getting Eighty-nine

,

tioned in

have

we

vated by the fact that although main forever a dream unless kilo; production, sales and profits have watts are welcomed into the facnv'ihnucinri^ner fallen, costs and prices have been lories. This is why the electrical

1p<:finp

f>.

S»

1

■

vhour that I'm

Now where this fact is recog-

services.

the

.

..

skills than

.

good because njzed ^ is recognized mostly in
automation does good things for
terms 0f the long, slow pull. That
production. It does good things j
ma
of those who recognize
with the five "elements'industry
this general idea will concede that
must use in turning out goods and
auto*ation does not take away

ts

.

ln„n<vlHn

makes

Rpmiired

*w

lhe

materials

employees feed

—-

word.The word

ts good.

rvx

that

automation, rather

fni. ^cession.. Furthermore, the automatic 1 oad ratio- control,

light bulbs per hour at Bloomfield
that was considered good.

Today,

over-all effects of automation can

V

Schools'

is.

10-year growth/ Fiftyhad low incoming
much, and this deficiency appears voltage. Eighty-five per cent had
to have
been
one
of tne major inadequate main
breaker capaccontributing reasons for the pros- ity. Ninety-four per cent had 110

automation. James K.

on

These plants were large enough

part of the

whatever

the

The; J act

little

—and

tion."

definition-r-and
country
are
used —•' the

But whatever the
in

lecturer

to

want

face

to

squarely up to the facts. This
the nub of the problem as it con
cerns the general public.
This
what the world thinks of first
this reduction in labor costs —
when it hears the word "automa¬

words like

"servo-mech-

and

like

would

I

Here

with

filled

Jobs

Business

Harvard

cause

Reduces Costs and Makes

explanations

j

but

u^ct,urinS plants. The results,
which, appeared^in fortune"
™agazlne in February, were startlmg' <
sav &tnJT.J

*

for

i-i-x—

_

ivorked per several decades; because the manunit of production. That means an ufactoring process is an extremely
increase in productivity for those complex one, involving assemb y
of such widely different materials
workers wi o remain op..that par¬
as glass, metals, and gas; and beticular operation.

"mechaniza¬
tion."

and a product where automatic
0jp
manufacturing has a history
1—

dec]jne

this

made a survey of 550 major man-

a

m0st emphatically ihaf automation

duction of man-hours

Long time un¬
der

With continuous autoproduction there comes a re-

manpower.

have been

we

.

,;)e to supply themselves with
^^pugh electric powei.it may surPr*se y°l'» but power equipment in
American industry is not nearly
should be. Last winter we

rest

undergoing'

complex

ire

doubt

no

vou

down

the

country is
business decline.:

new

'

,

More Electric 1 ower as First Step

coming into the back

goat of automation is particularly
strong at the oresent time, and it
is likely to be more so in the

,

one

--

diesels

ever

shop for repairs. Man, this autoOne of the most obvious first
mation is tough."
steps for such companies would

that we desperately need it to
Economics Department has estiand answer the
mated that the production of controls alone will grow 70% by 1960
problem of expanded capacity, rising costs and declining proand 200% by 1970, the fastest rate
due tion. The author believes much of American industry is not
of growth of any U. S. industry. ;
ready yet for automation and needs, now, more routine mechI would like to take a look at
what automation has achieved in
anizafion," more efficient use of the less expensive and comof
plants. It could be the
monplace machines and concepts. Avers automation is no
transformer plant at Athens,
threat to jobs and that, instead, it is the opposite, and explains
Georgia, or the new meter plant
how a crowing region like the South can benefit from it.
6
s
at naieigii,
'
V.at Raleigh, or the industrial lightme ujuustnai iiginblamed for the recession and

<;

these

but

controls—the activating and sens$5 billion industry. McGraw-Hill's

times over on the

other

important effects on man-

That brings up

another point. A

can
do with power-drive
machinery that controls and regu

men

lates

itself.

most important effect o
automation is one that I have 110
yet referred to at all. It is not th
fact that automation will creat
.
.
more
jobs than it displaces—no
The

the

increase

living

in

our

standard o

will bring—not the

it

of

portance

im

automation in mak
"

labo

7_

_

—D—

properly applied to a suitable
product or process, unit production costs can be greatly lowered
is

sometimes

—

sensationally

low-

er®"*
.

'

For

example,

be made
tenals.

in

savings
the handling of
major

O--

"

~

'

'

can
ma-

*

—.

„

"wu,a,

—

vvwixwug

«,i

tii-

tari run.iAiiientaii uiuu&uy is cer-

,

,

.,

displacement comes where a com- vironment.
The work is safer, tainly no child, but in some reSurvival Effect
iiany s costs
are
too high and, Physical effort is reduced.
Dull, spects, the fact is that much of
The most important single ef
rather than do anything about it hard and dangerous work is taken American industry is not ready feet of automation is bound up ii
(of which one thing might be the off the backs of men and trans- for the never-never land of fuil the word survival. If we are t

introduction of automatic processes), the company surrenders
its market to a lower-cost proJ

'

i'erred

to

the

machine.

Human automation

—

the pushbutton compete

labor, in short, is up-graded. And warehouses and the factories that
work which is beyond the are operated by a tape punched

some

'

-

-

we

are

power

as a trading nation — i
to survive as a militar
a dangerous world—the
-

in

industrial

time you
crease their cost without increas-

The main

ing their, value. Some estimates
place the cost of handling ma-

someone

terials at almost one-third the cost

trend

is

up

—

active areas—is done by machines

and as

"downs"

"ups."

*An

the
of

address

Conference

by
on

Mr.
the

Hodnette
Economic

the South

Research

before

said, our
than
most

better

under automatic control.

people's

*

■'
.

..

FWfmnino
L
ctromcs.Industry s

Let

*

*

w

me

be

automation

more

and

specific about

jobs.

Electronics

•

•

,

"

Automation Cannot Be Blamed

eu

Benefits

-

Future

sponsored by the Southern
Institute, Birmingham, Ala.




are

has

is

this matter. Companies and
dustries must be encouraged

place machines and concepts.
In thousands and thousands of

modernize — to mechanize — 1
automate. Their people must be

t

plants in the United States, the come familiar with the technique
of automation. If we find our
selves hesitating in this cours
date.
These companies are plod-, we might ponder the challen

Despite all this evidence, there production machinery and'metha tendency among many condi- ods used are, to be blunt, out of

tions and classes of men to blame

in

anization," more efficient use of
the less expensive and common-

Volume

187

Number 5754

.

The Commercial and Financial Chronicle

.

.

(2865)
flung at us not so long ago. Nikita
Khrushchev said: "We declare war
on

We

you.

will

United Stales.

win

The

threat

to

It

States is not in the inter¬
continental ballistic missile, but in
the field of peaceful
production.
relentless in

are

will

this, and

the superiority

prove

system."

By

1

Setting forth

The point here is that automa¬
tion is not something we can
whole way of industrial life. It
be developed slowly, labo¬

riously, through
What

ence.

in

we

of experi¬

years

learning

are

Most of the time this column is

reasonably

specific,

segments of

a

and,

the

continuous
of

automatic

cals and kilowatts

pro¬
.

chemi¬

and

.

be

quickly
adapted in an emergency to the
continuous production of military
equipment If we do not build up
can

habit-forming

of

ences

automation

time

the

>

of

of

;

Applies to the South

In conclusion, I would like to
point out that everything I have

said

about

automation

A

'time

its

and

U.

tra

Cobleigb

about

the

"The

found

had

we

Automation"

of

"The

on

Effects

of

Automation in the South."

However,

e w e

had

gleaned

industry,

only

for

the

ideas

impres¬

currently

chemical

edges

d

we

around

room

citation

re-'

of

indi¬

vidual securities.

know

do

we

the

we

we

general
and

sions

country.
I imagine that is why
Tom Martin asked me to speak on
Effects

i

v

benefits applies in equal measure
to the South or any part of the

rather, than

that
that

maceuticals. (For coverage in
both,
cite
American.' Cyanamid,
which is important in melamine

we'd

used

to

new

this

year.

has

Parke Davis is moving
highs in earning power
Pfizer sells near its

high for the

tneir

here

a

year's

highs.

section

of

So

the

an¬

Now

member

a

of...

company's i
York;
sales
department, he was

a
new
one.
Smith, Kline
French, and Abbott Labora¬
tories are also only a point or so

see

The

New

made

from

of

15 Broad

the

and Merck just

year

been

nounced.

and

until

you

recently

with the gov¬

chemi¬

ernment bond:
cal trade for whom the recession
has been only a ripple. - Ethical: department.
plastic age. If you
don't think so, then consider the drug net earnings for m'anyneom*
joined Timfollowing common uses.
When panies will reach all time highs
i

We live in

a

in

you may be jobbed
consciousness by an electric

Corporation

high profit margins.

plastic body, keep air conditioned
at your office via plastic
ducts,
and

answer

On your

a

plastic

vacation,

clude
ence

telephone.
ride in

on

g

note

So

we

its

water

supply

through

1949.

to

from

with

and

Reserve

eral

Baker, Jr.

with Blair

was

1940-48

from

L.

Davis

Prior

that he

majoring

:

Bank

1934-46.

Co.

&

Fed¬

New

of

the

York

V

With Curtis Merkel

>

in either plastics or drugs.

you may

(Special to The Financial Chronicle)

/■

•|

plastic boat, and your seaside
cottage may have plastic shingles,
plastic blinds and awnings and
get

in

Boston '*

con¬

solid prefer¬

of

for those chemicals

ST. PETERSBURG, Fla.—Stan¬
ley N. Palmer is now with Curtis

a

plastic

The most vivid immediate
ment would

First

Federal

you wake up,

Dean Witter Adds
1

t

.

(Special to The Financial Chronicle)

a

pipe.

PORTLAND,

com¬

Oreg.

Paul

—

E.

Merkel Co., Inc., 601 First Ave.,
North, members of the Philadel¬
phia-Baltimore Stock Exchange.

Miller has been added to the staff
of Dean Witter & Co., Equitable

,Now, how is it we have all these
that, despite their
plastics today, replacing, in many
is growing industrially, that is at¬ glamorous billings over the
past
tracting industry, that is building decade, chemical equities are not instances, the more familiar ma¬
terials
wood, leather, copper,
plants and installing new equip¬ supermen; in a recession they can
aluminum, steel and glass?
We
ment. The South is certainly Num¬ backspin step for
step with their
automation favors any region

share.

per

Corporation,

Street, New
ioi'k
City, it

1958, quite unconcerned about
into
suits, high.price/earnings'
ratios and relatively low cash
clock-radio; with a plastic case,
pay¬
in mind such bathe in a
outs. Drug shares have proved not
plastic bath tub, eat
a
program to-; breakfast off
plastic dishes, put only to have defensive depression
day, but quite on a
plastic suit, drive off on nylon resistant qualities but have been
frankly.by: the tires in a Corvette with an all able to retain their traditionally
economic
sector; We had

'

—

some

Corp.

Vice-President

First Boston

r

in

Jhat

"

war.
.

securities

one or more

companies

certainly will never be
develop them in time of

to

industry and

particular stocks.

broad

*

peace, we

able

elected

;

experi¬

in

in

terest about

,

the. vital,

of

especially for plastic disnware, Formico for sinks, counters,
brush,: the table tops, etc.; and for its Lederle
m e r i t s
or
Laboratories division, a. leader in
points 7 of;: in¬ therapeutic chemicals.)

rather

;
,

kitchens

dealing

particular industry
painting,
with
a

usually,

now
.

duction

citation, are going to get
capsule treatment today. Up¬
john (over the counter) with its
new
sunburn pill now sells at a
quite unbuyable level of $1,575
but

on

night. It is, rather,

must

consideration

present

First Boston

awZT aL\r?ak£r' Jr> ha* been

special

COBLEIGIi

notes about the chemical

some

for

reasons

buy

a

U.

though,,; due to Ilmi-/

as

cals

Enterprise Economist

our

;

and install over

DR. IRA

D. L. Baker V.-P. of

V

looks

tations of space, the pharmaceuti¬
marked
with
plastics, for

Polysyllables and Polymers

we

of

.....:

.

tion.

the

United

We

deserving of particular considera¬

Chemicals-

the

over

13

be

With Dempsey-Tegeler

Building.

(Special to The Financial Chronicle)

—

ber One in the nation in this

re¬

less

glamorous

For

spect.
The South

has 22%

now

of the

78

market

kinfolk.

example, Allied Chemical

is

down

from

1957

a

at

high of

With Harris,

have plastics because in this 20th

Century

have learned to Com¬
molecules of all sorts and

bine

new

synthetic

Upham

has become connected with Demp¬

(Special to The Financial Chronicle)

we

kinds to create

CHICAGO, 111.—Robert E. Wick
sey-Tegeler & Co., 209 South La

MILWAUKEE, Wis. —John

G.

Salle

Street.

He

was

ma¬

formerly

facilities. 98%; Dow at 55% is down from
Markham is now with Harris;. Up¬ with Hornblower & Weeks and
terials that are variously
a
1957
lighter,
top of 68%; and Union
An extraordinarily high percent¬
ham & Co., 710 North Water St.
Lamson Bros. & Co..
Carbide at 89 is off from a 1957 tougher, stronger, more resistant
age of those facilities! are newto heat, cold, acid or
corrosion;
high of 124V2; and Atlas Powder
are based on technological discov¬
and materials that can be
at
59 is down from
formed,
a
eries of the past few decades.
high of
I
shaped, molded and cast into a
have read that of the 250% in¬ 79%. And these declines are not
This is not an offering of these shares for sale, or an offer to buy, or a solicitation of an offer to buy
myriad of forms for countless
slavish following of the
caprice of
crease in per capita income in the
any of such shares. The offering is made only by the prospectus,
uses.
If you have a simple mole¬
the market; they are
impelled for
South since 1939, at least one-half
the most part by the direction of cule, it's a monomer; if you jam
can
be attributed directly to the
a lot of them together
you get a
net profits, down 34% for 25
rep¬
application of research to the con¬
853,781 Shares
resentative companies in the first polymer, and practically all plas¬
version of southern resources into
tics are formed from high poly¬
compared
with
the products needed by the econ¬ quarter of 1958
mers, namely those composed of
the same period in 1957.
nation's

manufacturing

,

omy.

many

Not

only that, but some of the
staples, very solidly in
25 years will help the South to
take care of those 50 million con¬ postwar demand, have shown sig¬
nificant
price
slippages
which
sumers who will be clamoring for
augur
lower
profitability. Sul¬
jobs, or goods, or both, in 1973.
phuric acid has been offered some
In

short, automation in the next

chemical

20%

"Financial Chronicle" of

In the

that Eugene
Stark, for many years in the in¬
vestment
business
had
passed
June 19, in reporting

away,

Mr.
in-v

Stark was

below

May

CORRECTION

The

monomers.

base

breakers

butadiene

as

verse
items
as
vinol
alcohol*
nitrogen fertilizers, polvethylene
resins, formaldehyde, chlorine and

^caustic soda.

This does

not

spell

Par Value $25 per Share-

polybutadiene, polyethylene, polypro¬
pylene, acrylonitrile and elasto¬

mers.-

'•!»••

••

•'

We started all these fancy poly¬
on their
way from working

'

Rights, evidenced by Subscription Warrants* to subscribe for these shares at $52
share have been issued by the Company,to holders-of its Common Stock of
record June 17, 1958, which rights expire July 8, 1958, as more fully set forth in
per

the prospectus.

mers

in

such

early

elements

as

lose

any

(for celluloid) and coal tars,
today are depending incresingly on petroleum (petrochemi¬

cals)

and ammonia.

A whole

subject to certain conditions, to purchase
unsubscribed shares and, during and after the subscription period, may offer
shares of Common Stock

as

well

is

overcapacity

with

--

exists

;icle"

.•id' f

Eugene

He has

Stark

been

as¬

sociated with Bruns, Nordeman &
Co. for the past five years, and

thereto

in

earn¬

healthy and corrective

in

the

order

of

$23

billion

1958; and for over 20 years has
been growing at the rate of 9% a
year
(three times as rapidly as

far

moribund.

prior

dips in share

product prices, and
appear

sales

that

he is very

Because

constantly

for

Nordeman, in¬

from

now

longtruly
dynamic industry which employs
810,000 people, should attain gross

Stark,

us

there:

rather than occasion for any
term bearishness about this

Bruns,

forms

trades, there

and

and

error,

Mr.

other

was

for

27

years

the

average

growth

rate

of

all

industries).
Now because
come

so

companies
under this broad classifica¬
many

of

the

being

rapid advances
in poly¬

tomorrow's.

lars

(If celluloid col¬
fashionable today, they

were

wouldn't be made out of celluloid!

Probably, vinyl.) Hence, this plas¬
chemical business simply has
to go in for
unremitting research.
It can't go along like a soft drink
or chewing gum
company turning
out identical products for years on
end.
That is a major reason for
the
big percentage of retained
earnings in chemical companies—
tic

with Merrill Lynch, Pierce, Fenner
& Beane. He began his career in

tion of

to

day,

the investment business

has to decide which sector is the
liveliest and most forward look¬

plant facility requisite for turning
out the resulting new products.

man

as a

young

with the old New York Curb

Exchange,

when

it

was

still

an

ing, since all parts of the industry
do

outside market.

chemicals, the investor to¬
somewhere along the line,

not grow

at

an

identical rate.

Where
lie?

Joins

Wilson, Johnson

(Special to The Financial Chronicle)

SAN FRANCISCO, Calif.—Ken¬

neth

S.

filiated

Thomson

with

has become

Wilson,

Johnson

af¬

&

Higgins, 300 Montgomery Street,
members

Stock

of

the

Pacific

Coast

Exchange..




should present preference
With the agricultural chemi¬

cals, chlorine specialists: sulphur,
potash, boron or petrochemical,
magnesium enterprises; or among
the biggest and most diversified
industrial

leaders?

There is, of course, no absolute
but a great deal can be
said in favor of companies major¬
answer

ing in two major segments of the
chemical trade—lastics and phar¬

/

finance

Now

research

for

and

the

about

specifics,
$280

million

out

of

$1.4 billion in net sales for 1957
coming from plastics. Dow does
about

%rd of its total business in

plastics.
clude

Other majors would in¬

amid

course,' du

43%

and

Pont.

beckoning

Eastman

at

-of the several under-*:*

The First Boston Corporation

llarrinian

■

;

;

,

'

Smith, Barney & Co.

i

Ripley & Co.

Incorporated

Eastman Dillon, Union Securities & Co.

Goldman, Sachs & Co.

Kidder, Pcabody & Co.

Lehman Brothers

.

;

.

,

.

.,

,

y,

Glore, Forgan & Co.

hazard Freres & Co.

Merrill Lynch, Pierce, Fenner & Smith

Stone & Webster Securities

Corporation

First California Company

White, Weld & Co.

Schwabacher & Co.

Walston & Co., Inc.

Incorporated

Elworthy & Co.
F. S. Moseley & Co.

W. C. Langley & Co.

Shuman, Agnew & Co.

Brush, Slocumb & Co. Inc.

Hemphill, Noyes & Co.

Irving Lundborg & Co.
Wertheim & Co.

Dominick & Dominick

Lee Higginson

Hornblower & Weeks

Corporation

J. Barth & Co.

Ilallgarten & Co.
W. E. Hutton & Co,

Carl M. Loeb, Rhoades & Co.

Mitchum, Jones & Templeton

Reynolds & Co., Inc.
William R. Staats & Co.

Hooker &

Fay

Paine, Webber, Jackson & Curtis
Salomon Bros. & Hutzler

Davis, Skaggs & Co.

Mason Brothers

109

are

Sutro & Co,

Francis I. duPont & Co,

E. F. Hutton & Company

Bateman, Eichler & Co.

Lester, Ryons & Co.

Crowell, Weedon & Co.
F. S. Sinithers & Co.

Shearson, Ilammill & Co.

of

plastic
slanted chemical in today's mar¬
ket? Well, they're all blue chips,
but perhaps American Cyanamid
at

Dean Witter & Co.

and,

most

any

••

Dempsey-Tegeler & Co.

the

be. obtained from

Blyth & Co., Inc.

Monsanto, Rohm & Haas,
Kodak, American Cyan-

Eastman
And

•may

new

the biggest
plastic producer is Union Carbide
with

forth in the prospectus.

writers only in states, in which such underwriters 'are qualified id act as i
dealers in securities ampin which the prospectus may legally be distributed, it:

made

merization,
obsolescence
is
an
increasing factor and yesterday's
plastic may be scrapped in favor
of

Copies of the prospectus

vicuna fur!)

even

intense competition.

ings

unfortu¬

nate

in

more

But these assorted

regrets

this

v

a

(Maybe

as set

lot

of elements

•ing been asso-%

Bruns, Nord^man & Co;,
N.Y. City.
The"Chron-.'

.

The several Underwriters have -agreed,

but

may serve, however—
depression, but it docs indicate
that, in certain areas, in chemicals sand, silica, borax,; limestone, etc.

ciated

:

.

cellu¬

.correctly iden-Vf
'tified as hav->

as

Company

Common Stock

and

first

posted prices since
(reduced from $24 to
around $20 per ton).
Price con¬
cessions of 5% to 15% have re¬
cently been offered on such di¬

Pacific Gas and Electric

ma¬

terials

(polymers) are about a
hundred today (with new ones on
the way) and include such
jaw

,

Hill Richards & Co.
Bache & Co,

Lawson, Levy, Williams & Stern

Henry F. Swift & Co.

Pflueger & Baerwald)
Weeden & Co,
Incorporated

Wilson, Johnson & Higgins
June 24, 1958.

Wulff, Hansen & Co.

-

The Commercial and Financial Chronicle

14

responsibility de¬
State's

Public

sible?

mands it. The future of our

New Yoik State as

Thursday, June 26: 1958

.

A Financial Center

the.

By RICHARD S.

State, ; The Directors of Riverside Trust
that Company, Hartford, and of Bank¬
the public interest ers Trust Company/Essex, have
within

banks

various

wise

provide a sound basis for leg¬ agreed, to terms of a proposed
islative judgment and action.
If merger under which 'stockholders
Bankers ; would
receive .18
we
don't all hang together, we of

separately.

may,

//-.
the last

♦

.

Expressing concern about the increasing competitive chal¬
lenges to—and relative deterioration of demand deposits inNew York State, retiring President of the Commercial Banker's
Trade Group, avers it is necessary to close ranks and resolve
differences of opinions between various banks as soon as
possible. Mr. Perkins trusts commercial bankers, regulatory
officials and the Legislature will not sit idly by and watch the
pre-eminent national and international financial position of
New York disintegrate.

work

the

econ¬

this

of

State

as

.

a

Atlanta, Minneapolis
Kansas
City—total demand

their employ¬

ally New
State

Yo rk

enjoyed
the position of
being the fi¬
the

States

as

Reserve

to

goes on

position has brought great prestige

,

matprial«i'sflnd

,

has

sr/srdbttxe ssas-r—rasMMSMi*
however, the pre-eminent position

*S8tUSSSXl65 tSfSS&BTSAZSi.
/ew
panics peiceniagewise ^ » fjj
industrial

ad-

have not been gaining as rapidly lers the ultimate in industrial ad^
^ out_of_state institutions,, vantages.
The dynamism of our
test.
While
New York
is still the State will create a growing deDespite its pre-eminent position
international
financhi mand for banking facilities and;

of New yoik is
ut J\ew York is under the severest
tne severest

New

York

creasing

in-

encountered

has

competition

from

financial centers. The

more

other
rapid

Sinter
1pn

Jf

1h;„

^o^ition

Stockholders

.

services. Banking must be ready
chal- to accept this challenging oppor-

Florida?

and

have

/

.

For

to

tunity. Banking must be ready to

instance

relative

in

importance

the

national

New

of

picture

is

being challenged.

on the plan at a special itteeting called for June 26. Waterbury
Farrel
presently employs about
1,000 persons in Waterbury and at
a new plant in Cheshire.

With Reynolds & Co.

example, the share of the
country's commercial bank de¬
posits held by New York State

this State, the

role

of

banks

York

New

must

to

concern

be

New

regulatory oitaa s and the Le^ slature Wl11 not Slt ldl^
whlle

the

transactions
transactions,

financing
of foreign
financing;ot foreign
and investments.

These

in

matters

as

of

York, banks.

h th

t

the

erosion of

national

our

international,

and

It

all

finance

leader in

state

well

as

as

were

while

21.7%,

up

de¬

now?

posits for all Reserve City banks
were
up
45.2% and for country
banks 48.4%.
now

the

latest

survey

on

"Ownership of Demand Deposits" just issued by the Federal
.

.

*-»

j

Reserve

i

......

Board

-

i

-

iV

■

reveals

.

that

i

<

the

•An address by Mr. Perkins before tbe
62nd Annual

Bankers
June

Convention, New York State
Association, Lake Placid, N. Y.,

11, 1958.

;

.

!

Closing of Ranks Demanded
At

a

respect

one

we

do have abso¬

unity—a singleness of purpose.
speak now of the Association.

I

time when banking is being

Chenu

is

now

J.
&

Co., 2150 Franklin Street,

has

Joins

Republic Sees.

(Special to The Financial

PASADENA, Calif.
E.

Bruce'

with

Chronicle^) "/

Raymond

—

affiliated

become

has

Republic

Securities

Com¬

252 South Lake Avenue. He
formerly with Daniel D. Wes-<
& Co., Inc.

pany,
was

re¬

R. L. Colburn Adds
(Special to The Financial Chronicle)

:

.

we

close ranks and resolve

problems

as

soon

our

as

ip-

pos-

;

-

!

mercial banking industry of. New
York State.
I wish to take this opportunity
to thank all. the members of the
„

of

members

Addressing Service

the

Administrative

publishers of "Security Dealers of North Amer¬
we
have a metal stencil for every firm and

it

were

our

possible

behalf. I wish

to

express

my

bank

R. L. Colburn Company,
fornia

other bankers who

Street.

Mr.

527 Cali¬

Schwarz

was

previously with Herman G. Frese.

.

end mills and drills.

reamers,

'HfV.1'"',

siS

The

Hartford

Now With Waldron Co.

sj:

Fire

SAN

Company has withdrawn its offer
to

purchase for $36 a share com¬
mon
stock of Northwestern Fire
Marine

and

Minneapolis,
offer of $41

a

Yuk

because

share has been made

investment

located

Minneapolis.

has returned

any

Hartford

shares^ de¬

business and retain

-its r investments. / Hartford/;which
has been operating Northwestern's

insurance business

become

associated

&

Inc.,

under;

a

man¬

Co.,
/•

Russ

///.'/ *•

Staff/;

(Special to The Financial Chronicle)

also

trust

closed-end

Fire

has

Waldron

Walston Adds to

by Inter-Canadian Corporation, a
in

FRANCISCO, Calif.—Koon

Lew

with

Company, Building.
a : higher

Insurance

/

(Special to The Financial Chronicle)

Insurance

SAN

JOSE,

•* i

J.

Calif.—Edward

Pallis has been added to the staff

Walston

of

Santa

Clara

&

Co.,

Inc.,

Street.

81

West

"'■///////

With James H. Price /.
(Special to The Financial Chronicle)

FT.

'-/

listed In this publication,
which puts us in
position to offer you a more up-to-the-minute list

than

you

can

There are

obtain

elsewhere

approximately

States and 900 in Canada,
by States and Cities.

Addressing charge $7.00

mittees

9,000 names In the United
all arranged alphabetically

per

thousand.

ian M. Dempsey

is now connected

with James H. Price & Company,

|Inc., 148 East Las Olas Boulevard.

agement contract, would then take
over

Joins Rice Staff

all outstanding insurance,
•

-

(Special to The Financial

Chronicle)

1

ALE„Fla.—
James K. Sullivan Jr. has joined
a .Military
Contracts D i! V i s i o n the staff of Daniel F. Rice & Co.,
which will seek to obtain military 1040 Bay view Drive.
; *
FT. LAUD ER-D

addressing NASD

We

at

can

a

small

also

List

supply the list

additional

$8 00 per
on

thousand

gummed roll labels

charge.

Herbert D. Seibert & Co., Inc.
Publishers of "Security Dealers o) North America"

25 Park Place

—

REctor 2-9570

——

New

York

on

com¬

the Association, who
agricultural key-bankers,
county leaders for education and
in
numerous < other
capacities. I

serve

of

I

as

CHAS.W. SCRANTON & CO.

.

Special N. A. S D list (main offices only) arranged
Just as they appeared in. "Security Dealers."
Cost
for

serve

want to thank

too, A1 Muench and

the other members of the Associa¬

tion's staff who work year-round
in our behalf.
These men indi¬

vidually and collectively are do¬
ing a magnificent job.
As long
as such a unity of purpose exists,
I

am

confident

that

tion and commercial

City

continue
and

to

pace

Associa¬

banking will
at a rapid
in New York

progress

satisfactory

State.

the

t

LAUDERDALE, Fla.—^Viv;

thanks to each of the hundreds of

a




manufactures; carbide cutting
tools, including solid carbide
ago,

Board, the latter of whom have /.v.
been meeting with me ™nn+hly :/ The Singer Manufacturing Com¬
over the past year, for their un¬
pany, Bridgeport, has established
selfish efforts in

As

formed about 12 years

FRANCISCO, Calif.—Paul'
W. Schwarz is now affiliated with
SAN

\

Council of Administration and the

ica,"

was

posited under its offer and "will
sell to Inter-Canadian' the 19,800
deeply impressed by the willing- shares
which it»has owned for a
of the country are soliciting our ness of bankers from all size nnrl ; pupiher ;6f; yjears. - if ; jnter-Cana in/iiin4*r\vsrt/\*Vrt
rdVioll
midrliiiim
customers, our businesses, our in- stitutions — small, medium and .dian purchases control of North¬
dustries and our population, isn't large—to work together on variwestern, the latter will go ouf of
it of the utmost importance that ous projects to promote the comT
The insurance

•

Dealer-Broker

which

This past year has been to me a
rewarding experience. I have been

challenged from outside of the
State, at a time when other parts

ternal

;

in

~

lute

•

the
.

Calif. —Robert
with Reynolds

OAKLAND,

cently completed and is occupying
plant in. Newington. The

key¬

stone of our State's economic life.
gives rise to the most serious of We cannot abdicate this responsi¬
banks has declined from 32% in
questions: (1)Wherein lies New
bility. While there are differences
1940 to 24%
in 1945 to 20% in
York's future
in banking?
(2) of
opinion on some internal mat1955 and to 19% at the end of
How must banking be shaped or
1957. In the 10-year span, 1947-57, molded to meet our economic des- ters, I feel sure that they can be
harmoniously adjusted.
New York City banks increased
tiny? We might well ask ourselves
"Singleness of Purpose"
in their total deposits by 16.4%. —What kind of
banking will we
; In Conclusion I wish to say that
However, bank deposits in Chi¬ have five, 10 or 20 years from

"r*

(Special to The Financial Chronicle)

/

d more

For

And

cash, equiv¬

°

"

cago

Inci

plan provide

Vote

of other centers! share in this development, to proimportantly since World Vld,e the financial resources to 25,000 square foot new pliant is
"
of the nation has brought about a
air-conditioned throughout, a n d
War II, the more dominant role of make it possible
■
very rapid expansion in banking
the government! in
international':
aiT!
t e c m-_ provides additional officer/and
facilities in these areas, and thus
manufacturing s p a c e.,: A t r a x,
finance has tended to counter the; mfc'a/ bankers of
the
York

Textron;
a

share on each of the
142,710 outstanding shares. Stock-i
holders of Waterbury Farrel will

a. new

the;gfowth

the southern and western areas

»n

of

and

agreed upon

alent to $50 a

V

Company *.has

Atrax

The

Waterbury
Machine

Textron for $7,135,500

1on
•v

of

and

Foundry

ing for the sale of the assets, and
business of Waterbury Farrel/ to

opment, The most recent major
project was the new plant, at
United, Florida, which cost nearly
$30 million and is being used for
laboratory research and develop¬
ment.

-;

Company

for new plants and devel¬

money

silverplated hollo-

of * its /own

million

$200

spent

company's main office
production facilities for

Directors

The
Farrel

During

the past 10 years the company

site,
completed
$5 million to

i'

Norden-Ketay

20 shares of Norden common stock

Connecticut

35-acre

Meriden.

•:/ ' /

"/9

of

a

was

both formerly located in
older buildings in the center of

w

*

on

about

ware,

important

occurred

have

changes

growth of population and industry

th? emmtry

of

.

'*

the

new

•

and industry. It has the
finest shipping, rail and transportation facilities in the world. It

in

increased

deposits

demand

instlt.11-

ness

say

This

.

*

of

manufacture of

$2.9

;
United Aircraft Corporation has
New York- State is a growth announced that it
plans to spend
State and offers the greatest ad- about $50 million in the next 15
vancement opportunities in busi-;
months on new plant facilities in

that the declines were concentrated in the larger banks, 'that

Richard S. Perkins

the

world.

Federal

The

well

of

as

and

hnnlrinC

n;hir,h

which banking instituand met

tion."

York, PhiladelCleveland
districts."

in the New

phia

United

districts were
largest declines

The

•

/■':

about

;

in Meriden is in

building

cost

and

$34 million

of

plant

plant of International

Located

new
a

house

Will be exchanged for one share
of common of United;! The ex¬
Commercial banks in New York change
will v take
place
about
are
the leading lenders to con- July 1 after which the Stamford
sumers, to the small business, to firm
will
be
operated/* as. the
individuals
and
to agriculture; Norden Division.! No change in its
Most individuals working in New operations or; plant /location is
York State have a checking ac- planned at the present time, ac¬
count or savings account in a com- cording to the Chairma n of
mercial bank. We can be dustlyl United.
/.././-' •
V, /
proud of this "record of' distinc-

City

substantial.
were

/

:■

at

have functioned
their responsibilities.

the Boston

in

increases

Kansas

and

nancial center
of

the

but

has

ir>

manner

tions

posits of individuals, partnerships
and corporations rose. The largest
increase occurred in Minneapolis,

Histori¬

ees.

of

manner in

and
de-

mond,

nd

1-:

over

funds

and
:»/. '•>.•/

«

f

•

operation and has been dedi¬

the

Corporation located in Stamford,
I believe the high, have approved acquisition^ of the
level at which the State's economy company by United Aircraft Cor¬
has risen is due largely to the poration on a basis whereby each

Rich-

"In five districts—Boston,

stock¬

holders

million.

no

capital

new

cated.

does not touch.

:

..

„

Decline In Relative Postion

the banks,

as

their

*•

,

n

at

is

There

State.

of

resources

and

our
industrial and
commercial life in which banking

demand deposits of individuals,
partnerships and corporations of
io
any of the 12 Federal Reserve Districts. Let me quote the report:

well

our

segment

iu~

ii..

a

in

total

forces

constructive

most

the

full

both banks and by the Connecticut
Banking Department. Upon-com¬
pletion of the merger Bankers
Willi become the-fifth Branch .of
Riverside, which will then have

of

New York State have been one

The

*

»

Silver Company

outstanding. The merger is.subject
to
approval by stockholders^ of

provide every family and
business banking need. Commer¬
cial banking has long been, the
right arm of commerce and indus¬
try. The banking institutions of

of any other-,

use

equipment

'tr.:

shares of Riverside for each share

They

Banking in New York State is New York Federal Reserve Diswith
a
number
of trict suffered the gi*eatest loss in

'

*

analysis, make the greatest contri¬
bution to the State's well-being.

confronted

and

in

banks,

Commercial

idle

space/ "//://

and

,

omy

help stabilize employ¬

ment and make

will best serve

PERKINS*

York State Bankers Association
Vice-Chairman, First National City Bank, and
Chairman, City Farmers Trust Co., New York City

problems, the solution of which
would materially aid the people

contracts to

our

must be resolved in a manner

Retiring President, New

,

Connecticut Brevities

The

dynamic economy demands it.
differences of opinion between

es

.

.

(2866)

f<. ^

^

f

t

i.

1

Members New York Stock Exchange ;

CONNECTICUT
New Haven

SECURITIES

New York —REctor

2-9377

JAckson

7-2669

Hartford

—

Teletype NH 194

'

Volume 187

Number

5754

The Commercial and Financial
Chronicle

.

(2867)

(

.

>

1,750,000 by 1965 and 2,200,000 by

1970.

Vice-President and Economist
Standard & Poor's

Corporation, New York City

Research editor details four factors which he is certain
continued

a

decade

overall

annual

assures

a

growth rate of 4% in the next

$575 billion
$700 billion by 1970. Mr. Schellbach discusses
promising areas of growth and some of the collateral condi¬
tions

likely to be encountered

the

two

but need not,

may,

week,

next

month,

This

is

or

next

even

really

year.

thought,

for
short-term

trends

are

oftenVinfluenced

yC

b

in

curve

the

perhaps able to shake

nals,

deception of the
can

little

This,

live

as

long

nest

in

old

saw

cheaply

you

start

as

reason

for

we

in at least

were

one

I

209 million by
compared .with about 172

not

am

\

.

early

that
one.

building

to

raise

my

book,

optimism

is
on

a

the

Lewis L. Schellbach

for

Jumped

their

shirts

from
of

then

and

the

20th

Yale

the

club

story
is

be¬

side the point. Their fundamental

thesis

proved correct.

was

When

we

in the midst of

are

a

business

recession, as at present,
it/.is perhaps worthwhile to sit
back for a few minutes and take
a

longer-term view. The contrasts
both

pre

refreshing

stimu¬

and

lating.
'-/ Needless

optimistic
next

to

decade.

describe

the

In

definiteness,

I

say,

am

very

the outlook for

on

I'm

going

conditions

the

interests

as

to

foresee

we

in the middle sixties,
1965, and again in 1970. • •

By 1965,

of

to

try

them

\

say

and

major

is, the total
output of goods and services con¬
be

in

the

neighbor¬

hood of $575 billion, measured in

dollars

of

growth

no

perhaps,

new

to

the

world

the

than

We have

ness outlook for the next
decade.
Rather than the million or so
new
homes we now

one

the

total

labor

taste of what

fuels

ion, a boom right in line with the
growth national product estimates
I presented
early in this paper.

to

This leads

{

most

\current

have

you

combination of popu¬
growth and 'the facilities
a

heading

of

me

exciting

to the fourth and

for

reason

opti-

an

mistic

view of the next decade:
The fact that
industry is, for the

•-

first
to

time, trying to find

questions

that

So

million,

much

even

nearly V/2%

or

to

for

manpower.

mankind, for

millions

of

puzzled
years

and also to new
questions that

cif u+n°W ?insm^i
Slichter

crystal-ball

are

^r- the
Su^ner
it

must confess that I'm not

.

electronic

computers
a

expenditures.
~
five -years at less than
amount to $15 billion.
Y.
5%,
against gains of about 8% for \ As a matter of fact, even if the
We've heard-a
lot
in recent
total population in each of these United States and Russia should
Weeks
and
months
about
the

half

decades.

second,

It

half

is

not

of .the

until

next

Translated

purchasing

thapasfbut" the'team

not be dreamed of.
We've

just started

since the war,
some
of :the

fibers

and

years

results.

wrappings.

better

than 30%, or
4% a year com*
pounded. Continuation of the same

approximately

us

a

gross national product of $700 bil¬
lion by 1970, an increase of 60%-.

4%. annual

exactly

growth

the

from

entitled to ask

are

1947

rate

same

average

•You

if

is

the

as

through

1956.

we

engine.

"Atomic

marines. The "exotic" fuels. Fiberglass boats. Rockets and satellites,

The fuel pump. Room air condi-

tioning. A wide variety of "wonder
drugs." The list could extend for
pages and hours,
.

As

I

we're just beginning,
thumb, they say it
requires
an
average
of
seven,
years to take a new research development from the laboratory to
fhe market.
Many of the
As

a

n0w

say,

rule

of

things
early development stages

in

will be hitting the market
during
the next decade. One would have
to

have

deed

clear

crystal

foretell,

the

a

to

Continued

Scientists

and

the

this
eight

are

we

tion)
and

workers.

the

Korean
In

I would
major considerations:

cite

four

In

most

seen

the

rather

a

next

potent

rapid

few

source

will

manpower

Engineers,"

All these Shares

having been sold, this advertisement appears

as a matter

of record only.
#.

*•.

t-

250,000 Shares

.

common

years

stock

(Par Value 25# Per Share)

addi¬

of

lie

Lefcourt Realty Corporation

among

teenagers; population between
19, inclusive, is indicated

15

and

to

be

the

growing

by

current five

pected

war.

answer,

have

increase-in the national product.
In the past
decade, the labor foree
has been supplemented
by a vast
increase in the number of women

filling

for

total popula¬
since the war,

has 'existed
we

the

-

to

about

years

20%

and

is

expand by 29%

five years between

in
ex¬

in the

1960 and

1965

Price $2.50 Per Share

—by far the most rapid growth of

"

Sharper

(2)

growth

in

family

formations.

\

probability

The

(3)

tinued

cold

creasing

demands

-

on

con¬

in¬

make

indus¬

our

trial facilities and manpower.

(4) And most important, the
fact that we are just entering on
What
new

has

aptly

been

called

"the

industry of discovery."

between
second

deal

respect

has

been

to No.
said

1,

in

a

great

public

on

the subject and I won't go into

long
that

discourse.
most

Suffice

projections

it

to

of

a

say

the

there

half

*An address by Mr. Schellbach before
7th annual convention of the
Copper and

Brass Warehouse Association, White Sul¬
phur Springs, W. Va.




and

of

the

1965.
next

In

the

decade,

will

be no question about
sufficient manpower; the
working
between 20 and 65 will be

ages

growing at the

same

rate

as

Copies of the Prospectus

may

be obtained in

Underwriters, including the undersigned,

as

may

only from such of the several

state

any

lawfully offer the securities in such

state.

the

total population.

Rate.

Our second factor must be
given
considerable weight, and that is
the

level

bond

of

.

UNDERWRITERS

of

marriages. The holy
matrimony
has
been

Aetna Securities Corporation

Roman

bringing together about 1.5 mil¬
lion

-

population.

expansion I expect

now

Marriage

•

the

This is the reservoir that will need
be tapped if we are to have

Population and Know How
With

of

to

the industrial

that

will

war

segment

any

(1) Population growth.

;

ball

in¬

shape

on

ductiveVages than in

tional

automobiles, homes, and a host of
other
things,
and
the
added
stimulus,
for
a
time,
of
the

or

ing force. However, that condition
(less rapid /increase Jn the pro-

World War II had the stimulus of

needs

The jet
sub-i

powered

expect extraor¬
dinary production increases
arising out of growth of the work¬

Justified in • extending that rate
for,-after all,, the decade since
war-deferred

Synthetic
Electronic

computers. The transistor.

cannot

pate of growth- would give

this road

on

really, and look at

decade

■.industrially,

foughly $435 billion indicated for
this year, and would represent an

hlmost

cant

approach, with adequate financing
and splendid facilities, is produce
ing wonders that otherwise could

that working ages will
parallel
the growth of the total
population.
the next seven

This

that

small fraction

0f 1% of the time that would
have
been required
only a few years
ago/ We have testing equipment

next

means-for

of

With

facilities, the pace is
dazzling. We now havo

more

solve problems in

answers

have

gazing. I
aptly- calls
new
a global
industry of discovery.
and
know
how
with: which
to thinker.
I
haven't the slightest
Indeed, this is such a new
provide a rising standard of living idea what
changes may take place
industry that very little organized
for that growing
population, then in Russia in-the years ahead. I
information is available on it. The
yoii have the makings of great don't know whether her
inevitable National Science
Foundation
in
prosperity. We have'that combina¬ swing away from communism and
3955 published a detailed
tion in this' country.
survey
.' VY
: toward
capitalism will be rapid
showing that, in 1953, American
From'. the
standpoint
of
the enough to permit a meeting of the industry
spent $3.7 billion on reminds on disarmament
prospective level of
during the search and development. In
prosperity,
1941,
however, it is necessary to look period under discussion. My guess,
«ie
was
behind these figures.
and it is strictly
^an
billion,
that, is that the
tPPTl acc°rding to a study by
East and the West will continue R?7
the McGraw-Hill
Y From nbw until about 1965, the
Department of
to yap and nip at each other. That
greater part of "the prospective
Economics, it had risen to $7.3
rise Will "bp arhong those under the rivalry will center
increas¬
billion, having almost doubled in
on
domination
of
20 and above 65. For those in the ingly
miter four
years. While industry is respace. If you let your imagination
most
productive
ducing capital spending this year,
working
ages,
run-in
that direction,
that is,' from" 20 through
you
can it planned to increase its
64, the
research
increase between 3955 and 1960 is conjure up a really high level of expenditures. By
1960, it is be¬
government, and perhaps private, lieved that these
figured at only 3.5% and in the
expenditures will
lation

power. That figure compares with

increase

force

number al

now

of the labor force.i

moon

by-products

of outer space.

and

.

most

respect

excursions
are

of

since 1930. They

,

important,

to Mars

of this

busi¬

,

future

the number of scientists
engineers in this country has
increased at four times the rate of

the

are

"There

the

large., amounts
of
profitably. Well, the fact

and

no

in

of

we

these

money
is that

man-

Li

said

many

the

expanding

of

page

24

■

national product, that

sumed, will

on

system

and

arise, whether

as

*

estimate, the gross

we

rnAntr

as

.

More

a

Cold War
population or to
population ^-growth yper se as a
The third factor—that the cold
barometerof Y prosperity/' If
will
it war
make
increasing de¬
were
India
would/be the most mands on our facilities and manprosperous. lan,d on earth. But if power —
may come under the

America were eventually proved
right and, in many cases, for the
right reasons. That they may have

window

spend

brainpower, however,

OC<

thirties,

,,

which

demands

educational

scientists,

may

laboratories

it and

on

our

out

will be able to staff the

estimate of

any

turn

question

frontiers left." This is the
greatest
frontier of all time.

who attaches great

one

importance

:

the

lost

to

,

by-1965 and

as

million now.;

long-term

first

in

extremely large. Let

say,

•

outlook

failure of

outer

already had some slight
they may be. New
are
regard as an an¬
being developed. New that
greatly simplifies the work of
nual normal,
metal
1.3 or 1.4 million
combinations
are
use the most
being the scientist. We have
Optimistic projections
organizafound Experiments are
may well
become
commonplace,
by the Census Bureau, which are
beginning tion in the field for the first
with peak years well above that to test the
time;
ability of human man no
based" on".the.! 1954-55 level
of
longer is invention a matter of
level. Collateral construction of to survive in new and
strange a lone screwball
fertility.'
*Y'Y-YY'f <*•.-1-''.J roads, ■■
working nights
•*
sewers, shopping centers, environments.
in his garage. Far be it for me
On
that .basis;' we will have
ta
utility plants, schools, -churches,
something, like 193 million popu¬
Research and Development
hospitals, etc., spells, in my opin¬
tion than

1970,

bullish
on

be
ODXr

one

the

and

could
AVm

summer

in

price tag

a

value

a

and

power

recent

past have erred on the conserva¬
tive side. This is a better genera¬

lation

fundamental

in 1929

modus

a

of

.

bearing onY"

were

of

conquest

r

immediate',
developments
that have little

progress. Even
those
who

a

respect. On the basis of experience
to date, I would be inclined to

-

serious

a

point to put
give it

family.

population

sort

some

the

apartment

are

And before

interfere with fulfillment of the
"golden sixties."
It
is
much
easier
to
forecast
what will happen a decade hence
than what will occur next

at

v.vendi,

down the in-laws for a new
car¬
pet. You start buying dishes and
silver. In short, you soon learn

in the next ten years, and calls

possible threats which

arrive

'.

15

'

.

satisfactory in things to come The amounts of
just won't money involved, the use of mate-

bachelor

do. You

in 1965 and

attention to three

•'

tain economic
aspects of the per¬
formance. The furniture
you had
considered entirely

-

that Gross National Product will reach

so

^

(

Now, if any of you have gone space lootns as a "new
industry"
through the process of getting of breath-taking proportions.4 I
married, I need not belabor cer¬ certainly won't
attempt at this

By LEWIS L. SCHELLBACH*

v

:

•

"

couples in recent years. This
will
drop slightly this

liumber

year and
ward in

a

next, but then turn
trend that should

up¬

reach

June 24, 1958

■

-

-

&

Johnson

1956.

16

The Commercial and Financial

(28G2)

nancial
with

ferreds that

Aircrafts,

-

*

of

stock

manipulation by a
a year ago took
on a sizable position in American Motors spiced this issue
m very active tradmg. First

financier who

there

because

,;;

too,

have

of

tales that Louis E.

were

a

How Does

a

Chemical

Ki

The

the
oil
are

three

By HANS
Stauffer Chemical

STAUFFER*

convertible de-

a

culled out

were

long

preferreds of Kerr-McGee
and Pittston Co., which
both listings on the
Stock Exchange,

York

run

the details of

New
and

There

are

financial decisions even

ways

many

to raise

1956^ survey

Portland

both

capital

better

offer

into

150,000

Some

of

the

-

two segments:

investment

a-

intriguing aspect of
the whole subject of financing is
the raising of long-term' capital
from outside sources. It is in this

problemPraising

fiscal year. The senior issues
0f General Portland and
Pittston

InteraalJniir

"

anticipated for the June 30

,i.erm of intermediate em:.v
acter.most

The

.
that

troublesome
Trnnmp„omp

+ho
the

nues.
ques-

dlbt versus

equity financing in encountered. It is in this
area,
also, that much ingenuity
"
" '
«on of

exercised by manage¬
by their bankers, un¬
derwriters, legal counsel, and so
forth.
Especially in the field of
long-term
debt
financing, the
Variety of mechanisms which have
been developed is remarkable and
reflects the resourcefulnes of the
individuals responsible J for their
creation. Included in the field of
debt financing today are mortgage
bonds,
debenture
bonds
(with
and without sinking fund provi¬
sions) direct placement loans as
contrasted to publicly offered islong-term bank loans, and
has

been

ment

.

least

.

,

man

at

^fntioned Jefore in-

Cement's capital and each has its own pe- cheated that 1.1% of'.thetotalex
culiar; advantages and disadvan- pansion financing w^s l^oyided,
y
subordinated debenture 5s of
tages. And while outside profes- bank loans. It is, of course, .qu
1977.
Kerr-McGee
issues sional counsel is always advisable, possible that the largest #
Par*
r,._
thPCf.' hank
loans were^of longshowed the widest spread, the the selection of the "right" way these bank loans were-of char¬
General

and

short

management that

though it has properly used outside financial advisers. ; -

it must make the

mission

been

internaUnd short-

external financing and reminds top

Exchange Com- stock issue that currently is that the conversion price of the major
charged it had all just shy of the three million $57.50 is around 10 points be- sources of inbeen cleaned out and that, total.
low the market price that the ternal funds
moreover, Mr. Wolfson had
;
Bargain Hunting
common has shown recently.
and nit
curities

York City

Company, New

at Merritt, benture issue also helps keep than 4% against only around First, internal
Chapman & Scott, was liqui- Lockheed restrained since 31/2% for General's-common f„inan^g at
dating his 400,000-share block more than half a million an(j only a bit better than 2% securing of
of American, with some con- shares could be issued for for pittston's equity shares, funds from
fusion over just how much such conversion which is a Of the trio, General Portland from outside
had been sold. Then the Se- sizable dilution for a common stands out prominently in
^al^know

Wolfson, top

.

#

stretching out of $1 12V£ preferred offering is a responsibility of company
4-/2%
against only around *»'
1.7% . for the common on pictof modern management,
which a decline in earnings is
>
.

measure

Capital?

Company Raise

available at

Mr. Stauffer concentrates on

been

military^ programs and
the expenses ot starting up its
turboprop commercial plane,
The !dividend, isn't in any
jeopardy and the return is
above 5% at recent prices. To

charge these days the

rare

were

❖

rather obviously subdued and
seesawing a bit un- Lockheed, for instance, was
certainly in Tune with the appraising its, estimated 1953
various hopes for Congres- earnings
at less than nine
sional tax relief. The real in- times. Restraining this particterest, however, centered on a ular issue is the expectation
handful-of issues that ran an that results this year would
mdependent course.
not exceed last year, largely
.

up

deben¬

yield well above the return
offered by the common stocks
of the same companies.

the rails

The

come

a

STREETE

Aircrafts Subdued

Reactionary tendencies persisted for the general list in
this week's stock market with

to

convertible

1958

Thursday, June 26,

..

.

ture and two convertible pre-

THE MARKET... AND YOU
By WALLACE

service

one

Chronicle

profit. Chemi-

and

Hans Stauffer
Tobaccos a Bright Spot
cal industry
the thinking was back in the busistock sagged badly and then ness of^huntinp" for bargains
Brightest spot in the trad- management,
sues, long-term bank loans, ana
V
f
/
1
n ss 01 nunun§ Ior oargdins .
s
^
ha<? for the most part, needed no leaseback transactions. Convertirebounded
and for several in issues which are currently mg groups were the tobaccos, has lor me most p ^
ble features are often associated
sessions was the most active well below their historic which is not a new story. But, vantage 0f accelerated deprecia- with
these loan arrangements
issue in the daily trading.
peaks despite the improve- on the other hand, despite tion procedures in order to gen- whereby capital stock in the bor-

In

shares.

the

process

j

j

*

*

*

sive, with Chrysler given to
heaviness followed, by re-

but getting nowhere
t

covery

in the process.
♦

,

*

*

Steels
were
moderately
heavy for the most as the improvement in operations came
to at least a temporary halt
which

could be the

the traditional
down.

start

summer

of

slow-

.

«J:

*

the stock

ment this month in

Other autos did little deci-

rowing lender

sizable advances in some of erate large cash inflow.

sXul^ted^rkls

at

the favored issues their chamnHnriDafrourwToi There are numerous aspects of the
was prominent on the "bar- pions were quick to point out -n^nal financing, has posed per- loan(. agreements ^hat jnust ^be
gain" lists for several reasons, that they weren't overvalued piexing questions for us all. cash maturity, interest rate, sinking
fund provisions, call prices, secu->
one
being its decline from since the spectacular switch stockholders expect a fair
yield—perhaps a lower yield than
$249 in 1955 to below $180 on to filter cigarets was still from some other segments of rity for the loan, dividend restric¬
^d—nerhans a lower yield
tions, restrictions on working
sinking spells recently. Then, boosting net income. Loril- manufacturing because of the
capital, and sale or acquisition of
character of our industry
too, the practice in this issue lard, which scooted from be- growth nevertheless a substantial assets. Because of the very fact
—but
was to deduct its holdings of low 16 at last year's low to portion of net profit must be that these debt arrangements are
of a long-term nature, it is' essenGeneral Motors which figure above 60 currently, is pro- remitted to our stockholders. How0
,
out to nearly a share and a jected to earnings of $8 a eyer> it .g interesting to note the tial that qualified and thoughtful
half for each du Pont share, share for this .year by some growing trend toward payment of 4auf Iflll0these transactions
or
more
than $50 which sources. That would be more stock dividends rather than cash, wis .ot
Debt Versus Equity Financing
would trim the prime price than double last year. But it
oThis
indices. Du Pont, for

*

for du Pont

instance,

alone to around

would still represent a price

investment.

he has an op-

Too,

Equity financing has lagged be¬
debt
financing,
providing

hind

than nine times earn- portunity to exercise an option — only 3.5% of the funds for chemi¬
the projections are ac- to sell his stock dividend (on a cal expansion in 1956. This un¬
world's leading chemica 1 curate.
If, as anticipated
basis) or t0 malntain doubtedly reflects the tax advan¬
pers as a price trim intertages yielded by debt financing
rupted the-improvement in colossus. A year or so back widely, the dividend is. 0ther internal factors effecting
copper prices. There wasn't du Pont was popular on occa- boosted moderately this year capitai requirements are inven- and, als° the. fact.that existing
much pressure on them, how- sion on the prospect that the to a 50% payout, it would tories, accounts receivable, bank stockholders to growth many eases
contributed
have in by permit¬
ever.
'
GM shares would shortly be'still represent a return of a balances, and accounts payable. ting substantial retention of earn¬
ings by their companies. Preferred
passed along to holders but fat 5»/z% even on present SgwTonf^ls are maintained over
stock

$125. At this figure it was a of less
bit unsteady, notably the cop¬ low tag for shares of the ings if
metals

Other

*

•

Foods had

were

a

also

a

*

mundane

mar-

ket life, despite the fact that

industry predictions were
among the brighter spots in
the overall economy. Consolidated Foods, cleaning up its
fiscal
year
that ends this
month, was free to predict
record sales and earnings for
the period. The company is
engaged in a vigorous second
look at various of its operations to eliminate those that

that divestiture

now

appears

to .be headed for a long
wrangle with the antitrust
forces.

*

;

*

*

prices tor the stock.

these

aspects

of

our

businesses

*
*
*
affect the amount of capital inflow
Rails were also favored in the importance of internal financ¬
re^uired- By way of emphasizing
some circles for their high ing, a survey made by one of the

yields

although

marketwise

that
companies

chemical magazines indicated
the

major

chemical

expand the profitable

ones

which indicates that the

com-

pany has every
of keeping its

expectation
uptrends in
sales and earnings going after
the end of the fiscal year. But
while the company is paying
1

little

'

^

-attention

"

ing in polio vaccine shipments 9%. These returns, however, commercial banks are undoubtadverselv affprtod fnr ih* Bulk ni inwctnrc wpt-p edly the major source of shortadversely affected for the bulk of investors were

"ChronicleThey
n

,

as

Convertibles Explored

those of

are presented
the author only.]

it is

generally considered unwise
to finance permanent expansion
through short-term financing, the

-

With the bond markets in

talk, the market is still not

by

as

much

as

a

somewhat unsettled condi-

nine-times tion,

earnings.




have

high after-tax cost as com¬
pared with debt. There have been
a
large number of debt issues
very

floated

into

which

common

were

convertible

stock and

some

con¬

common |toqk. offered Tor sale in
L„e. „pa?„ f e^v bought by existing
believ?T.10
have
been
r

'

.

willing to capitalize this issue

particular,

profits for the March quarter, overshadowed by other de- fil^ce^Tper^an^faSoring^oi stockholders. We all aspire to
manage our companies in such a
Even a new acquisition—the velopments and sparked little accounts
receivable
are
other way that our
present stockholders
CampanaCo.—and new drugs general demand.
means of obtaining funds for sea- want to maintain or increase their
equities.
to be introduced this year
[The views
in this
In the case of both debt financ¬
have failed so far to inspire article do not necessarily at any nancing of long-term debt, and
time coincide with those of the other such short term needs. While ing and equity financing one of
the issue to better action,

recession

to

in

Allied Laboratories was the issues were far more sen- were financing 90% of their 1956 vertible preferred issues have
been sold.
A small but increas¬
also considered in the bargain sitive to the pros and cons expansion by internal means.
ingly significant portion of equity
category since it sold last year over excise tax relief. Quality
External Financing
financing has come from the stock
a score of points above its re- roads like Louisville & Nashoption and employee stock pur¬
Turning to the area of external
cent level which was pretty ville were still available at financing, it is essential to dif- chase plans introduced so widely
close to its 1958 low. Helping around 8% and Nickel Plate's fSentiate between^hortTe^ and in ^e"past 7ew^eak""sVgnfftdepress Allied were a shrink- return recently was crowding long-term financing. Although cantly, the largest part of the new

have been unsatisfactorv and which
unsatisfactory and which
to

issues,

been used seldom because of their

a

digging

rather unique bit of
was

done by

one

fi-

A. S. Ross Opens
Arnold S.

Ross is

Office

conducting

'

securities business from offices at
666 Fifth

*From
~Tr~

fore

a

Avenue, New York City.

The

an

address
..

by Mr. Stauffer .
be¬
»

Subdivision

of

Chemical

Man¬

Division of Industrial and En¬
gineering Chemistry at The Spring: Meet¬
ing of The American Chemical Society,
San Francisco, Calif.
agement

the biggest problems for

manage-

ment is correct timing. Timing is
of crucial importance with respect

to interest rates, andShrewd prices
selling (and
capital stock.

for

fortunate)

appraisal

conditions

can

make

good;

the

same

by

of
us

market

look very

token,

poor

Volume

187

Number 5754

.

The Commercial and Financial Chronicle

.

.

(2869)

(or unfortunate) timing can sub¬
ject us to criticism by the "second
guessors."

.

All

of

blessed

are

us

with 20-20 hindsight.
For the new or small chemical

-

company, these problems are even
more

-

important.

cent

of

Ninty three

failures

of

per

business

new

said to be due to management
inexperience and ineptitude. By
are

far

the

largest

of

area

manage¬

ment

inexperience, in the new
chemical company, is in the field
of finance, not in technical skills
—production and sales. The man¬
ager of such

always

;

sional

enterprise should

an

seek

competent

profes¬

counsel.,

We

all know

that

our

industry

is dynamic.

In spite of periodic

cyclic dips,

we

or

must always plan
for growth andfor
change. And that
that important problems of

means
-

financing will always
In

that

top

.

because
of

of

the

The Syndicats, an
organization
comprised of Wall Street secre¬

taries,
outing

holding their
Friday, June 27,

are

annual

at

banking houses and has
panded

Munro

of

and

Hornblower

will be the

Jessie
Weeks

Secretary for the

new

coming
year.
Herrington of

&

Misses

The

dent

Gertrude

Smith,

are

the

luncheons

partment

girls

Barney

was

result

of

1

With

McDonald, Holman

(Special to The Financial Chronicle)

BEVERLY

M.

Smith

HILLS, Cal.—Letha

has

joined the staff of
Holman & Co., Inc.,

McDonald,

214 North Canon Drive.

&

from

in

informal

syndicate

among

girls

formed

de¬

investment

SEG

P. A.

1424
in

a

K

securities

recently

been

N.

W.,

The

Securities

and

to

engage

business. .He

associated

has

with

Searight, Ahalt & O'Connor.

Harris, Upham

(Special to The Financial Chronicle)

OAKLAND, Calif.—William
Gamble

Exchange

has

become

cannot
over

of

the

division of trading and

exchanges,
succeeding John E. Loomis, who

has

been

appointed

rector of the

porate

associate

division of the

regulation.*

Mr.

cor¬

Saul

J. O. Funk

di¬

is

a

Opens

GULSA, Okla.—James O.

from offices in the
Mayo Bldg.

Mertz Opens Office
D. W. Holmes Adds
(Special to The Financial Chronicle)

LAKE
—John

»

MADERA, Calif. —Eugene C.
Caughlan
with
South

D.

has
W.

A

become

Holmes

&

affiliated

Co.,

110

Street.

RONKONKOMA, N. Y.
Mertz

is

engaging

Innis

Avenue.

with Albert &

He

was

Shuck Co.

afford to
to outside

ample evi¬
that the chemical
industry

dence

recognizes the vital
portance of this facet of

im¬

manage-

"

ment

responsibility.

^

Blyth and Associates

Underwriting Pacific
Gas & Electric Offering

;

Pacific Gas & Electric
Company
is

■

offering holders

of

its

$25

par

value common stock
rights to sub-scribe at $52 per share for
853,781
additional shares of common

-

stock,

at the rate of one new share
for
each 20 shares held of record June

-

*

17,

-

'

1958.

The

subscription

.will expire on
July
A
nation
wide

*

group
-will purchase

*

V';-:

--

-

-

'

offer

8, 1958.

underwriting
headed by Blyth & Co., Inc.

•

any - unsubscribed

shares from, the company.
<
:
The net proceeds from the sale
will be applied toward the cost
of

~v
'

-

additions to the company's
utility

properties.
mon

stock,

17.2%

48.3 %r.

com¬

of

the

of approxi¬

long-term

preferred

;

new

capitalization

company will consist

mately

:

.

After the sale of the

stock

debt,
34.5%

and

stock and surplus.

common

•*,

.

'

The company distributes
electric power or gas, or

either

.

-

both, in
a
territory having an estimated
population of 6,250,000, extending
to 47 of California's 58 counties.

,

-

In the 12 months to March

electric

revenues

66%

of
gas

31,1958,

total

and

2

Total

accounted

for

operating revenues
service for 34%.

operating

revenues of the

company in 1957 were

compared
.

with

t Net

1956.

$501,244,000,
$470,744,000
in

income-

increased

to

:

$76,620,000 in 1957 from $75,774,-

-

000 in

1956 and amounted to $79,-

719,000,

$3.59 per share, for the

or

12 months ended March

31, 1958.

-The company has paid dividends

its

on

stock in every year
Since January, 1956,

common

since

1918.

dividends

have

been

paid

annual rate of $2.40 per

at

the

share.

Milk

With Merrill Lynch

serves

a

growing

America

(Special to The Financial Chronicle)

HOLLYWOOD, Calif.—Edward
Harris has joined the staff of
Merrill Lynch, Pierce, Fenner &

A.

Smith, 6353 Hollywood Boulevard.

Bingham, Walter Adds
ANGELES, Calif. —Royal
Smith, Jr., has been added to
staff

the

Hurry,
Street,
Coast

glasses. Churned and fresh in nutritious butter pats.

Skimmed and separated for rich cheeses and healthy ice creams—milk
serves

the nation in many ways.

~

THE

And in many ways, too, America's commercial banks serve the dairy

industry.

(Special to The Financial Chronicle)

LOS
B.

Fluid and cool in tall

of Bingham, Walter &
Inc.,
621
South
Spring
members of the Pacific

Stock Exchange.

With

money,

.

<

credit and financial services, commercial banks help

farmers produce milk. Commercial

banks also help dairymen

package and distribute milk and its

many

it's the

Chase

.

process,

by-products. And ultimately

Manhattan
BANK

neighborhood banker who helps retailers stock milk and milk

Chartered 1799

products for the entire community.
Joins J. L. Fallon
(Special to The Financial Chronicle

The Chase Manhattan Bank of New York, a

LOS
E.

H.

nected

7805

ANGELES, Calif.—Robert
Mosier

has

become

with James L.

Sunset

Fallon

Boulevard-




leading lender to Ameri¬

HEAD OFFICE: 18 Pine

Street, N. Y. 15

i

industry, is proud to be a part of this banking system which helps
keep our economy healthy and strong.
can

con¬

Membtr Federal Deposit Insurance Corporation

Co.,

(One of

a

series of advertisements published in New York City newspapers)

a
on

formerly

Co., Inc. and M. J.

critical

.clearly

in

securities business from offices

gathering constitutes

"

Funk

is conducting a securities business

financial advisors and rely solely
on
their judgment.
Today's

.

,
.

W,

connected

with

Harris, Upham & Co., 1400
Commission has announced that
Franklin Street. He was
formerly
effective Aug. 4, Ralph S. Saul will
with
Stephenson, Ley decker & Co.
become associate director

staff attorney for the Radio Cor¬
poration of America.

Mahoney Opens

Street,

Now With

Appoints Saul

Associate Director

will

the retiring Presi¬

Syndicats
as

of

WASHINGTON, D. C.—Patrick
Secretary, respectively. A. Mahoney has opened offices at

and

The
1950

Inc.,

ex¬

enjoy
tennis,
golfing, and swimming and will
be the recipients of various
prizes
given by many of the girl's bosses.

Co. and Mae MacDonald of Blyth
& Co.

now

secretaries

partners.

Long Island. Claire Borick Friend
of Blyth & Co.
Inc., will be the
President

include

the

Nassau Country Club, Glen Cove,

incoming

to

financing,

proper

management

turn such problems

.

us.

conclusion, I want to empha-

sibe

importance

.

be with

Syndicats Quting
Friday, June 27th

17

Financial Chronicle

The Commercial and

18

.

,

Thursday, June 26, 1858

.

(2870)
continue

the
Defense of Our Country

What Must Be Done foi
By GORDON

:

Former

Director,

Former

of the Army
Carolina

urgently definite need to merge existing separate organiza¬
tions and divided planning for traditional mobilization and for
civilian preparedness into one focal point to achieve authority
and responsibility in a non-military defense program of
"mobilization
readiness-in-being" • is stressed by recently

;

appointed President's National Security Assistant,
Gray. Referring to other categories of inter-locking
V

problems,

the

measures,

shed the burdens of fear

Gordon

in

that government cannot

fense

the

today's

billion dollars
I

would

like to

discuss Amer-

ica's defenses as a whole.

But for

the purpose of making this tremendously complex subject more

Dulles

a

a

requires and
of peace de¬
Therefore, J must com¬

to

you

system of j despotic

the President's de¬
make certain

to

changes

organizational

Department.

Defense

the

would

not

here

get

into

will ask vou to
yourselves for a moment
the principles involved.

address

in a very real sense, therefore,
cold war has been waged since

to

I

seman¬

tics or details but

hostility.

"i

that prudence

necessary

in

' V,,.-

.

maintenance

mend

|;

as

lives we
make that

authority and his funds from

be

range

of preparedness
us both to

which enable

militarily strong and to mini¬

the longer be depaalmentalized. ^'
"

Congress.:y\;v. )■,,,..

budget look like a happy

termination

order of . forty

a year.

a

mands.

Sees "no escape"?from

military budgets on the

staggering

wide

measures

yv

This means then that just as we

of have one organization for military
passed by the House, on defenses, we must have one focal
On
the other hand, we must June 12. One is a provision which point for authority and response
make
these expenditures wisely, would allow any single one of four bility " for non-military defenses.
Old concepts—such as separate
and with assurance that we., are Presidential appointees to block
buying the full measure of de¬ the President in making a quick organizations and divided plan¬

what must come from ourselves—i. e., "spiritualdefense." Mr. Gray selects 1947 as the year the honey¬
was over and we first publicly recognized and prepared

deal with USSR's intransigence.

not

do

economy.

moral

to

a

that

any

Korea

kind of

grant or decree
moon

of

minds

lost

reorganization and disarmament

and utters the reminder

impossibility of any such develop¬
ment, and has specifically stated ;
that the Joint Chiefs will, and I

13 or 14 billion—and the
,

defense
distinguished public servant fully supports

the Administration's military

prepared people, I refer to

than

Staff

pointed out the

,

The

r:

General

type

The President has

mistrust there cannot be

Mobilization

Office of Defense

Under Secretary and Secretary
President of the University of North

"Prussian

for

and
mize the consequences of possible
doubt in
nuclear attack. ■;
r
---\
duote, "Act only under the au¬
of us that we
In a way, what I am saying is
thority and in the name of the
must
have
strong
military de¬
Secretary of Defense." Their func¬ that total national survival is in¬
fenses.
We
must, maintain
our
tion is to advise and assist the divisible
in the nuclear missive
retaliatory forces as a deterrent to
Secretary, and they will not per¬ age. We must not neglect the im¬
war
and
our
active
defenses
ioral
any
of their duties inde¬ portance of continuity of govern¬
against the possibility that deter¬
pendent 1 y of the * Secretary's ment, production readiness, re¬
rents could fail. This means, you
direction.
source
allocation, critical mate¬
t ^
i
well understand, that there is no
stockpiling,
civil- defense
Still others have charged that rials
escape
from
today's staggering
emergency,
relief
and
welfare
military budgets, on the order of the Secretary of Defense will be¬
come a *'czar." The President, in planning, emergency public works
$40 billion a year. Let me say
restoration, and a host of similar
parenthetically that I was around replying to this, pointed, out that
vital activities; and these can ho
when the order of magnitude was the Secretary of Defense gets his

may

the

for National

Former Assistant,

faithfully

that day comes when we

Until

GRAY*

President Eisenhower's Special Assistant
Security Affairs

work

to

and well-being.

peace

Let

me

discuss three features

the bill

as

move,

through

the

transfer

combat functions, to meet a

of ning for traditional mobilization

threat.

and for

of civilian pre¬

measures

Only if hostilities have already oc-/ paredness must yield.' Non-mili-curred, could the President over¬ tary
defenses ; must;; take
into
ride any one of these subordinate account the on-rush of technology
service chiefs.

just as our military defenses

must.

provision' of the House
We have made every effort -to
Bill is the requirement that the keep pace with the growing de¬
Secretary of Defense can act only structive power of weapons as we
through the three Service Secre¬ have planned and prepared to sur-f
taries. This would make it im¬ vive nuclear attack. However, this
Another

possible for him to use his staff planning requires organizational
effectively to help him do his job. mechanisms which, so far as pos¬
come to know the scientific, tech¬
We must remind ourselves that It is as bad as
the ."separately sible, are directly responsive to
nological, military, industrial, and we have not fought our major administered" provision, of the the situation as we now see it and
specifically of
economic progress of the Soviet wars with the military organiza¬
four catego¬
present law, which has encouraged not as we may have seen it when
Union, which seems to seek now tion which was in existence at the administrative delays, expensive
ries of de¬
the basic legislative authority for
to challenge us on every front and beginning of the war. We have
fenses. I
duplications,
frictions,
disunity the Office of Defense Mobilization
in every area. Clearly, these kinds always found it necessary to make
would speak
and service rivalries. I know full and
the
Federal Civil Defense
of tools are being used in a spirit drastic changes. There will be no
specifically of
well how a Secretary of a military Administration
were, enacted
iii
of expansion and aggression.
time
in a
new
war
to make department can impede and frus¬
four categories
the last decade. :
,7,'
; f
of defenses. I
The one salient characteristic changes
which have become so trate, in the interests of maintain¬ •f Let's look at the way in which
would ask you
of the Soviet Political system, to necessary to meet the new dimen¬ ing the prestige and funds of his the
programs of the Office of De?
to
bear in
which I briefly referred, is the sion of warfare. To fail to face up own military service.-;,
fense Mobilization have changed
lack of parliamentary restraints. to this problem now, and while
mind, as we
A third provision of the bill en¬ in the last eight years. During the
think about
Power and power mechanisms are there is time, would be to permit
courages each individual Service Korean War and World War II, we
these catego¬
not in the
hands of the Soviet ourselves to become betrothed to
Chief to bring directly to a com¬ thought of mobilization as involv?
ries, that
people, who, I believe, like our¬ disaster.
mittee of Congress any differences ing the rapid conversion of pro¬
Gordon Gray
while obvi¬
selves, do not want) war of ^any
I believe that we cannot and
of opinion he may have with his ductive capacity from, peacetime
ously separashould not seek to eliminate all
.,
.
..
Jund.'ln the Soviet System^ howwartime
Commander-in-Chief.
Of course, to
production, supple¬
ble, they «*ie necessarily inter-yever> £he people are not supreme. service rivalries. Heafthy com¬
nothing in the President's pro¬ mented by stockpiles of strategic
dependent.
'
<phe state is supreme and the state petition is a part of the genius of
posal would diminish the powers and critical materials and equip¬
First, let us be sure that we un- itself can almost be said to be the America. But I do believe that the of Congress to call military wit¬ ment:
k
derstand that all we do, and all whim or impulse—certainly state planning of our defenses and the
Based
on ' that
concept, ODM
nesses before its committees—but
we think, and all we hope,
must of mind—of an individual, or at operation of our defenses, if that this provision, as the President carried out a great many programs
becomes necessary, must not fol¬
be against a background of pro- best, a handful of individuals,
has said, is nothing more or less to build up a mobilization base
low the pattern of a meeting of
found recent and current change
Now when we think of the dethan
"legalized insubordination." which could be quickly converted
and ferment, and in the light of fenses 0f our country, our minds instructed delegates. I can say to
It would have serious implications to war production, and to accumu¬
one
salient characteristic of the naturally turn
immediately to you that it is my conviction that lor civilian control of the military, late a national stockpile of raw
Soviet Political System.
with pride and which is a cardinal principle in materials. At that time, too, our
weapons systems. It is in this field preoccupation
position militate against the most
,
v - - > :
,
,
planning and programs were di¬
Honevmoon Was Over in 1947
that the most prQgress, which effective utilization of our mili¬ our system.
Honeymoon was Over
and technical
rected
toward a five-year war.
:
Provisions like this in the exist¬
.(One could choose almost any constantly feeds on itself, has tary resources. I believe that the
But as the technology of nuclear
date in recent history as a start- been made. In 1947 we thought of President's
plan can accomplish ing law have repeatedly tempted
warfare has developed, the gov¬
the various services to engage in
ing point, but I will choose the the at0mic bomb and the pro- his objectives, of making rivalry
contests
for
Congressional
and ernment has moved away from
year 1947 because it was in this peller-driven aircraft. In 1958 we the servant rather than the master
that
concept toward
one
of a
public favor and to weaken the
of progress. ;
year that the first steps toward think of the hydrogen bomb and
shorter, more devastating conflict.
What are the essentials of the unity and flexibility of the de¬
unification of the military services jet aircraft; and the missile era is
a mobilization
fense program. At its heart, this We talked about
were taken,
with the passage of SqUarely ahead of us. Now, also, proposed reorganization?
base ready to be converted, then
the National Security Act.
fallout has added a new dimenSimply to
give us unity in provision for appeal beyond the
President by a military chief, who about a base ready to produce, and
Let us also consider, however, sion. A single modern weapon can strategic planning, unity in mili¬
intends to
continue to serve in now, in line with the concept, of
the significance of that approxi- spread fatal radiation over hun- tary command, unity in our fight¬
that position, flouts the spirit and military forces-in-^being, it appears
mate point in history in terms of dreds of miles,
ing forces and greater assurance
to be equally important that we
the
threats
to
peace.
Nineteen.
Now what are our identifiable that we have the most efficient objective of unification. mobilization- readiness-inI wonder how long the top ex¬ have
and least costly defensive system
forty-seven was the year after Sir buj- inter-locking defenses? I have
being.
*
•
'
- ''
Winston Churchill delivered his said that j would diSCUss four, this nation can devise to deter the ecutive of any business organiza¬
tion would last—and how long the
remarkable Iron Curtain speech at They
are
diplomatic,
military, deadly menace to our country—a
ODM Versus Federal Civil i
Westminister College. It was the non-military, and spiritual-moral, menace which we may have to organization would last—if your
Defense Administration
subordinates could veto your ac¬
year
after
Secretary
of
State
Qur aim> without cupidity on cope with for many years.
In adapting to these changes, we
tions. You demand unity of com¬
Because the whole purpose of
Byrnes
publicly
attacked
the our part, is f0r a peaceful and
have encountered serious difficul-r
USSR for violating the Potsdam prosperous world, with freedom of our defense
establishment is to mand, and flexibility of action, in
ties under the existing division of
Agreements. It was the year of man everywhere assured. Of prevent war, or, if one conies, to the name of your .company and
basic authority between the Office
the initiation of the Truman Doc- course the world as we see it to- win it, its success requires one your stockholders—and you get it.
Should the elected President of of Defense Mobilization and the
trine and of the beginning of the day would answer to a signifi- single basic scheme, under single
States, who is also Federal Civil Defense Administra-f
Marshall Plan. And it was in this cantly different description; but direction. That scheme is our stra¬ the United
the
Commander-in-Chief of our tion. We have not been able -to
year that the Soviet protested to towards our ends we must have tegic plan. The single direction is
overcome these difficulties despite
us
about a
statement made by humane and realistic policies and provided by our highest military armed forces, be denied that same
the serious and sincere efforts of
Secretary of State Acheson before our conduct and posture must be chiefs,
acting
in unity under type of authority and flexibility
1 "
to look after the safety and future both staffs.
a Senate Committee in which he
appropriate to the prescription. As civilian control.
Let me illustrate from what I
said: "The Foreign policy of Rus- examples, we must recognize the
The President has said that the of the American people?
think is the area of greatest difr
sia
is
aggressive and expansion- facts of trade and the benefits of waging of war by separate ground,
Non-Military Defense
ficulty—planning for the mobili¬
ist.
Perhaps the shoe pinched; aid> We must understand that all sea and air forces is gone forever
and
utilization of human
Now I would refer briefly to zation
that we learned in
clearly the honeymoon was over, the peoples of the world are our —a lesson
what I have chosen to call "non- and material sources. While this
In early 1948 the Berlin Block- neighbors.
World War II. * '
•
"
*
" "• * .
1947

manageable, I
should speak

and in

Military Reorganization

these years we have

.

..

,

.

t

■■

-

significant scientific

.

'

ade trouble began, and by

June it

And

we

must continue to work

complete. This was, I believe,
the first act of overt challenge to

toward

the Western Allies.

son today believes that a war
virtual
mutual
annihilation

was

>

It

was

indeed during this period

nation; first began
clearly to-identify the predatory

that

a

dependable

system

of

disarmament. No responsible per-

of
is

objectives of international communism, which was referred to
recently by Secretary of State

insane way of
waging diplomacy by other
means; or is in any sense a solution to the problems of the world,
We can only hope at this point in

"^17 address

history that the intransigence of

we,

as

a

by Mr. Gray before m,„.

Chemists' Association, White
Springs, June 13, 1958.

ufacturing

Sulphur




anything

but

an

The

heart

of

the

President's

(

military defenses."

As we begin

to talk about them we see how in¬

is

the

the

central

Office

of

- of
Mobiliza¬

responsibility

Defense

proposal is flexibility and unity.
Civil Defense
This is taken by some people evitably our various defenses are tion, the Federal
also
has
very
If peace should fail Administration
to mean that there would be only intertwined.
broad responsibility and authority
one service. The President
stated we must win a war. Our ability to
in
this "field in
a
civil defense
in his. message
to Congress in win a war is ope of the corner¬
emergency.
The
Federal Civil
commenting -on -this subject, "I stones of peace; but if war should
Defense
Administration has the
have neither the intent nor the come we must think in terms of
after
an
attack, to
But they authority,
desire
to merge or abolish the non-military defenses.
too make their own contribution requisition supplies and materials,
traditional services."
,
deterrents
and ' therefore
to and to delegate its requisitioning
Other people have objected to to
On the other hand,
the President's plan on the ^peace, inasmuch as an unprepared authority.

the oOViet Union Can somehow be
eroded. In the meantime, we will grounds

,

that

it

would

create "a people is

a

more

inviting target

ODM

has

broad

authority

*

to

Volume

Number

137

5754

The Commercial and'Financial Chronicle

...

(2871>
determine

priorities

alloca¬

and

tions of materials and facilities in
accordance

with

the -'most

loved by our neighbors; the right
to be free men and women.
-

im¬

This

is

the spiritual and moral
basis which underlies and under-

mediate defense needs. We believe
that under attack conditions, these

girds

society; and this is the
authorities would collide—as they major and compelling difference
have
done
during our tests of between our society and that hos¬
national
mobilization- plans,
the tile despotism which would en¬
annual Operations Alert.
circle and engulf us.
'
Perhaps I can put it this way:
I am deeply convinced that this
The job of non-military defense difference will
be the means; by
cannot be divided
effectively for which we will prevail. But we
our

stand

must

the

on

must

basis of: (1) Time phases, such as
post-attack
survival
and
long-

and

and

it—

preserve

live by it.

is-why

these

is

our

spiritual-moral

de-u
;

From it will derive

our

}.

:',7

will and

example, food, our
hope; our courage and deter¬
sanitation, medical, shelter) and
mination.--:
■'
'- V
'**
.recovery
items
(for
example,
Again,: we-\as= individuals,^'and
building materials). (4) Types of
communities, and as a nation must
wartime
assumptions,
such
as
limited war, world war without
nuclear

attack

United
nuclear
The

the

on

States,
war.

to

be

,

ALLIANCE, Ohio

Williams

now

&

B;

New

—

with

Co.,

Robert F.

514

City,

has

opened

and

H.

Bree; Gerald

Melvin

S.

Bern-

W. G.

King Opens

a

branch office in the West
HUNTINGTON, N. Y.—William
Exhibit
G.
Hall at Bergen Mall:
King is conducting a securities
Founded in

Livingston,

Inc.,

York

Cramer

haut, associate.

J.—A. M. Kidder
& Co.,
Inc., one of the oldest ex¬
isting stock brokerage houses in

(Special to The Financial Chronicle) *

Haidet' is

Managers Warren

PARAMUS, N.

With Livingston, Williams
•

Mr. Neal said a staff of
12 at the
Mall office will be headed
by Co-

Opens Paramus Branch

lest
what

for.

19

1865, A. M. Kidder & Co. has of¬
fices in six States and
Canada.

East

Street.

Harry J. Neal Jr.,

Vice-Presi¬

business from
wood Drive

of

William

offices at 25

Cliff-

under the firm

name

G.

King Associates.

dent and. Treasurer of A. M. Kid¬

Form Combined Inv. Co.
iJohn J. Collins is engaging in

der &

its

securities business from offices at
150

Broadway,

under the firm

Investing
with

Co.

New
name

He

York

\

City,

move

the

to

King Merritt & Co., Inc.

a

N.

•

permanent location

Mall's

Midland

formerly

Kir by Vidrine Opens

ROSWELL,
quarters until after
Day, after' which it will Vidrine
has

present

Labor

of Combined

was

Co., Inc., said the brokerage
Bergen Mall will occupy

office in
a

Promenade,

Bank

and-

Mall Post Office.

near

the

on

the

Mex.—Kirby L.

opened

offices
at
117 ^ East Third Street to
engage
in the securities
business under

Bergen the firm

of

name

Kirby L. Vidrine

Co.

,

continental

world-wide

or-

*

:

current

things,

fail

A. Mt Kidder & Go. Inc.

t we

fense.

(for

these

preserve

live

we

Main

erect our de¬
fenses—and why not the least of

recovery or rehabilitation.
(2) -Geographical areas, „such as
damaged and undamaged areas^
(3) Subject or item, such as sur¬

items

must

w.e

This

range

vival

maintain

just and

commitment

our

.

purposes

the

good and
true and decent; for,
having made
our
commitment to survival, we

.

organizational

for

;

situation,

:

most

created

of; you know, has
fusion among the

as

con¬

Federal'Depart¬

ments

and

agencies-., As- Federal

mobilization plans reach the stage
where they can be made available
to Federal field- officials? and to
,

state and local officials, this conwill simply be distributed

fusion

-

throughout, the country [it
allowed to continue.
-'/'it
The

.

to

:

unify

and

it

is

to this confusion

answer

the

present

responsibilities

is

authorities

in

the /hands

of the President
to. allow him to,
provide, for unified, and flexible
direction of all these activities.

Reorganized in Plan No.

;

1 of 1958

..;rTo this end, the President has
submitted

to

organization

<

j

which

-

would

Federal
tration

•

;;Congress
No.

1

Re-

of

1958

abolish

the Office
Mobilization and the

©f. Defense
r
:

the

Plan

Civil
and

Defense

Adminis-

r.the

functions
apd responsibilities of these agen—
into a new Executive Office
merge

r.eies

,

i

/

agency which would be called the
Office
of
Defense
and
Civilian

Mobilization.

.

/

.'

•

.-r

■

,

Finally, I. would come to the last
of defense, which -d ; have

type

chosen
to
call
"spiritual-moral
.defense." It is clear that in these
times

of

trouble

and

sacrifice,

our

people

fortitude

and

continuing

stamina

have

must

viction.

and
1

con¬

;

I
We must have conviction of the
rectitude of our aims, which are
•

to stand for the

true

and

relationships

people and among nations.

among

We

just and good and

decent

must

have-the stamina to
travel the rough road ahead which
involves heavy taxes both for our
,

military strength and for sharing
our

We

.1

tube and extruded shapes now nearing

bounty with those who stand

for peace and freedom.,

have

must

fortitude

) which will derive

vive.

from

our will to sur¬

■;

^None

these

of

granted

or

things

be

can

decreed by the Federal

the distribution and sales of

Government.

These things must
belong to and inhere in free men.

I In
-

that

a

way,

we

what I-

must

to

walk

hwith the spirit of Patrick
Henry.
There are loud—and perhaps
per^
;
h,

;
'

:

Suasive
to
some — voices
today
Which would call for capitulation
to

f;

v

'

v.

♦

Foil Corporation, latest member

system of international slavery
if disarmament measures should
fail: In effect they say that war

unthinkable, and therefore

we

must avoid it at any cost,
r

The cost must

be

in

measured

terms of the total of all the

things

want for ourselves, and for our
children: The dignity and freedom

we

of

under God.

man

-

<

-

-

;

We cherish: the right to worship

as

choose—-loudly and joyfully
it pleases us; the right to
speak

if

we

one's

1

New trademark for Cochran-.

a

is
!

■ ■ «

saying is

am

continue

mind—to

criticism

or

to

praise; the right to gather: col¬
lectively to seek redress for our
grievances;
the right to
move
about; to own property; to enjoy

,r the fruits of our labor—or

indeed

*

to

reap

the

dubious

rewards

of

our
slothfulness, if that be our
choice; the right to love and be




stantial

portion
pounds-per-year

completion at Terre Haute, Indiana;
Cochran Foil Company, founded in
1939, had become the leading inde¬
pendent producer of aluminum sheet
and foil, laminated foil products,
and rigid aluminum containers. Now,

;

"Anaconda

ON May 1, 1958,Cochran Foil
Company,, Louisville, Ky.„ be¬
came

.

Cochran

The Anaconda

such

Foil

Corporation—
Company's newest

subsidiary. This acquisition marks a
major step forward in Anaconda's
steady growth and diversification,
and enhances its expanding position
in the aluminum industry.
Anaconda, a leader in nonferrous
metals, had previously entered the
aluminum industry through various
subsidiaries: An up-to-date primary
reduction plant at Columbia Falls,
Montana; a coiled-sheet rolling mill
at Torrington,, Connecticut; and
facilities for producing rod, sheet,

as

in air

all

consumer.

Company

■

Andes

a

be here
sub¬

very

Copper Mining Company

Chile

Copper-Company

,

Greeny Conanea-Copper Company,
Anaconda-Aluminum Company

^

soon

The American Brass
Company

Anaconda Wire & Cable Company

creased

products. The day will
we will be using

-

con¬

by 12%—
by m
even greater margin.* Our research and
sales engineers are busily developing
new uses and markets for aluminum
when

-

AnacondA

uses

ran' s sales have inPresident

<•

The

.

A. P. Cochran,

of

582598

ditioning, labels,
protective packag¬
ing, radios, bottle
caps, and so on.:
"I am very hap¬
py to report that so
far this year Coch¬

Cochran Foil Corporation

capacity

typical of the company's contribution
to America's progress, and a prime
example of a development program
that seeks to. offer better products
and services to both industry and

products will be made through the
Cochran Foil Corporation.<• -. - Speaking at Anaconda's annual
stockholders' meeting on May 21st,
A. P; Cochran commented:: "Most
people think of aluminum foil prima¬
rily as household
foil. Actually,
there are many oth¬
industrial

120,000,000

Anaconda's Columbia Falls plant." 1
Anaconda's growth in aluminum is

Aluminum"«fabricated

er

of the
present

I

Anaconda Sales Company
International Smelling and

Kefming Company
■

Cochran Foil

Corporation

v

The Commercial and Financial Chronicle

.

.

Thursday, June 26, 1958

.

(2372)

20

products during the
of 1958 brought

Sales of farm

and Agriculture

Food Industry
By IIAKRY
Chairman of the

first four months
farmers 8%

the

A. BULLIS*

Board, General Mills, Inc.

dollars than for
In April
commodity

months in 1957.

same

of

index

the

more

total decline in the annual rate of
gross national production was $18
billion—-4%—from the third quar¬

farm

10% above a year
the parity ratio had
advanced from 80 to 87 during the
prices was
earlier, and

Minneapolis, Minn.

optimism
that
the agricultural situation looks brighter than it has for some
time—though the problem of adjusting output to demand still
persists; and) in analyzing the general economic picture,
leading food manufacturer reviews the basis for
about the future prospects for the food industry; notes

A

ter

in

increase

higher prices in
some lines, such as meat animals
and some fruits and vegetables.
The freeze in areas of the south
earlier this year reduced supplies
of fruits and vegetables and prices

cooperative efforts by management, labor and
will be necessary if we are to restore full rate of
economic growth without planting the seeds of another infla¬
tionary boom and another recession. Mr. Bullis outlines what
business can do "to break the psychological freeze of con¬
sumer funds" and recommends a high level of non-farm activity
to provide opportunities for surplus fanners.

maintains best

government

primary factors

were:

inventories which

counted

$12

for

of

year

The

or

velop

serve

traction

the food

American
sumers.

con-

Both

on

directing
their attention

posi¬

year

great¬

efficiency

the

Harry

Insofar as
concerned,
recession in this

of available resources.

industry

there has been no

period of business
are

is

contraction. We

optimistic, because consumers

are maintaining their
habits of food purchasing and eat¬

generally
ing.
has

In some areas where scarcity
driven prices upward, people

they

prices_are

I'v

rvvx

rt

lr.

marketing.

expected to fol—J

m I V\VS

I

i

An

nhAlir

supplies show

in the market place.

up

markets

Farm

not

are

affected

by a recession
the markets for many other

as

much or

as

are

comes

Mills

has

as soon

have

become

ac¬

ent

would bring about a

situation,

differ¬
people

for many
would have to shift to lower priced

foods.
to

take

order

would then have

Farmers

deep

a

to

move

cut in prices in
supplies.
In any

to

will introduce more
new
products, and we have in¬
creased our budget for advertis¬
ing, promotion and selling accord¬
ingly.
Our merchandising pro¬
grams are placing greater empha¬
sis on
good selling and service
This year we

Although farm debts have been
edging upward in recent years,
agriculture remains quite solvent.
Of course, some farmers, like some
businessmen, find themselves stag¬

We believe the

How¬
generally

gering under a load of debt.
ever,

owner

equity

is

£';;V high.

than ever before.

important prob¬
lem businessmen face right mow
is to sell more products to con¬
consumer incomes are sufficiently
high to support the standards to sumers so that production and em¬
be making some substitutions,
but they still want good food, and

may

which

1

when enlarged

the development of event, this recession has laid to
better
manufacturing processes rest the old adage that "depres¬
and greater mechanical efficiency. sions are farm bred.and farm led."

attention

A. Bullis

profitable use
food

spent:^ much

stepped up
its research program, not only for
new
products and the improve¬
ment of old products, but for basic
research. We are giving constant

operating

the

we

«*

low

we products. People must continue to
this eat. A prolonged depression with
we plan to spend consider¬ heavy inroads on consumer in¬

General

im¬

through

i958,

ably more.

proved prod¬
er

l/n«,

capital, improvements as
did the previous year; and

for progress,

ucts and

May 31,

for

tive programs

including

Lower

in;

are

toward

endeavoringmake

by

operations more^fficfebt both
production and in sal^, Dur¬
ing the fiscal year which£ ended
our

of

needs

and this has slowed up

the

that
farm
are

■■■

would

It

be

recent

income

now

a

*■

improvement

in

that farmers

means

out of the woods.

There

still
burdensome
surpluses
ployment may be increased. To do are
we shall have to break the hanging over farm markets. The
psychological freeze of consumer outlook for production in 1958 is

this,

customed.
The food industry faces

an

op¬

of funds. It is our conviction that we promising in many parts of the
country, and the surplus problem
can all do more and better selling,
population alone is a sufficient
is likely to become worse.
For
basis for optimism. On top of that, advertising and servicing. We can
speed up product improvements instance, the prospective wheat
consumers have a continuing de¬
and new products in order to give crop of a 1,200,000,000 bushels will
sire for better foods which take
mean
a
larger carry-over next
less time to prepare in the kitchen. consumers what they want—better
year on top of one which is al¬
People
are
becoming nutrition and more attractive foods.
The food industry is the largest ready excessive.
conscious. While they count their

timistic

future.

The

growth

will

Tfie

require the best ef¬

forts of management, labor and
for government working together as a

expenditures

consumption, largely in con¬
d u rqble goods, ac¬
counted for $2.4 billion, or

cooperative team.

Na¬

Carl J. Kali Joins

tional Product.
There

Smilli, Barney & Co.

other declines, in¬

were

.V :

iSptcial to The Financial Chronicle)

MINNEAPOLIS, Minn.—Carl J.
Kail

has

become

associated

with

annUai rate 'which was $9 billion
al;)ove thfe irate Of production. It is
the economy cannot

obvious that

to liquidate inven¬
such/#rate/ The recent
production

long continue
tories at

rize in the rate of steel

indicate that the maximum
inventory reduction has

may

of

occulTC(j v

-

automatic

The
been

effective

sonal

income,

stabilizers

in

have

supporting per¬

and total

consump¬

only $2.4 bil¬
Furthermore, personal sav¬

tion has declined by
lion.

potential purchasing power
future.
If people could be per¬
suaded to reduce their $19 billion
rate

of

saving

by

purchases

creased

20%, their in¬
would be a

powerful tonic to the economy. In
the recessions of 1949 and 1954, a
reduced rate of savings helped to

Car! J. Kail

V

the Smith,
of the Tower.

ing continues high and adds to

years

National
the

a
look ahead, we can
inventory liquidation to
to an end, providing per¬
incomes
and
family con¬

&

Barney
Kail

Mr.

associated
Bank

Co.,

was

sonal

well
maintained.
Naturally, personal income will be
sumption

are

maintained
for

as

we

start to produce

consumption the equivalent of

which have been pro¬
vided
by
inventory
liquidation
during -the
past two
quarters.
Those
goods
which
have
been

the

goods

liquidated out of inventory pro¬
duced incomes last year and re¬
cession

this

year.

As the rate of

production rises, the accompany¬
ing rise in personal income will
make possible enlarged consump¬

the

Rand
many

First

of Minneapolis

in

Basis Club to Hold H
Summer

Taking
come

for

with

department.

municipal

enlarge consumption.
expect

mistake to think

inflationary

another recession.

20% of the decrease.

or

reduced

hogs'.

have

another

into

solution

for the better

typical of the food industry. We
recognized the business con¬

To¬
gether they

perous.

restore the
growth of
without

to

capable

are,

and

boom

prices of cattle and cluding net foreign investment
Cattle producers are hold¬ and Federal Government expendi¬
ing back breeding stock to rebuild tures, but these were largely off¬
herds, thereby reducing market set by increases in expenditures
The food industry and agricul¬ equipment, more advertising and
supplies for the time being. Ample
f state
d ,oca, government
better selling.
ture are two bright spots on the
supplies have
encouraged
I believe that what my com¬ feed
During the first quarter of 1958,
economic scene. These two large
pany, General Mills, is doing is longer leeding to heaviei weights we were consuming goods at an
sectors of our economy are pros-

ef¬

to

planting the seeds which will de¬

invest¬

15% of the drop in Gross

production
in largely accounts

is

economic

of

we

measures

sumer

the

of

are

we

billion

problem

rate

which

plant and equip¬
ment which amounted to $3.7

The

a

full

ment in new

and

improved.
The
stage

cycle

business

reduced

^The

which

cure.

ac¬

billion,

drastic

cation

rate of investment

reduced

in

policies

help to prevent inflation and
for the appli¬

reduce the need

fect

65% of the total decline.

farm income
the result of the good crop

The
last

The

The

year.'
was

so

of 1957 to the first quarter of

1958.

economic

sound

will

Guling

DETROIT, Mich. — The Basis
Club of Detroit, formed by the
young men

in the municipal bond

business, has completed

the final

arrangements for its First Annual
Summer Outing to be held at St.
Clair

Clair,

Inn

and

Mich.,

Country Club,

on

St.

July 11, 1958.

Members, guests, and

interested

parties are cordially invited to
bring their wives for a day of golf,
swimming and bridge. A cocktail
party and dinner will follow with
the awarding of golf, bridge and
door

prizes.

Reservations and further infor¬

mation on the outing and for those
Population growth is expanding tion.
in the country—$75 billion in 1957.
vy'
desiring to spend the week-end
the market for farm products, but
ply all the elements needed for I believe it is also the most com¬
The
important question is may be made through Mr. Edward
Margins per dollar of farmers are continually increasing whether this enlargement will be
good health for themselves and petitive.
Parr,
Social Chairman, Merrill
their growing families. The ex¬ sales are very small at all levels their efficiency. Agricultural pro¬
sufficient to restore economic Lynch, Pierce, Fenner & Smith,
cellent record of the food industry of processing, wholesaling and re¬ ductivity will undoubtedly keep
growth to a place where it is com¬ Detroit 26, Mich. Phone WO 3-4670."
and its future prospects are trib¬ tailing. Therefore, all elements in up with and perhaps out-pace the
mensurate
with
our
productive
utes to the educational work for the industry must be efficient to market demand. There is need for
capacity. The decline in business
survive. The result is beneficial, prompt recovery from the reces¬
With Commonwealth
good diets which has been carried
expenditure for new plant and
because
it puts a
on in the United States.
premium on sion and for improved interna¬
'»;
(Special to The Financial Chronicle)
relations
and
expanding equipment is. ap .unfavorable facserving the public with what it tional
During the past decade, consum¬
COLUMBUS, Ohio — Herbert
wants at the lowest possible cost foreign trade to provide' larger tor which will continue until eners
have
continued
to
spend
H. Beck has joined the staff of
outlets for farm products. The job larged consumption encourages in¬
about
25%
of their increasing compatible with the quality of
creased capital expenditures. That Commonwealth Securities Corpo¬
of adjusting productive capacity to
food which our peoplf? demand.
family
incomes for food. They
In the ration, 30 East Town Street.
fit available markets still remains may take until mid-1959.
The new food products which
have accepted
with hearty en¬
meantime, the forces for recovery
as a major problem. This calls for
dorsement the many innovations you see on the shelves of our huge
will slowly gain strength.
Merrill Lynch Adds
that have been introduced by thp supermarkets did not arrive spon¬ taking some land out of farm pro¬
There will be a substantial ex¬
duction and using other land less,
(Special to The financial- Chronicle)
food industry, such as frozen foods, taneously. Neither did the super¬
intensively, for instance, by shift¬ pansion, perhaps about 5 billion
the prepackaging of foods which markets. They are the result of
COLUMBUS, Ohio — James P.
dollars, coming in Federal ex¬
research and planning, much of ing from wheat to grazing.
were formerly sold in bulk, pre¬
Allen
is
with
Merrill
Lynch,
We can also expect
We need a high level of pro¬ penditures.
pared mixes, and all of the many which started before the war. The
moderate
increases
in expendi¬ Pierce, Fenner & Smith, 48 East
items which take drudgery out of war delayed them, but when the ductive activity in non-farm lines
tures for housing and in outlays Gay Street.
war
was over,
the kitchen.
the industry was to provide good opportunities for
by state and local governments.
ready to expand.
It is still -ex¬ farm people who are not needed
The food industry is, of course,
With Mutual Fund Assoc.
It is not clear just how the vari¬
in agriculture. All of these prob¬
panding.
a beneficiary of labor scarcity.
In
lems should be faced squarely and ous economic forces will interact
(Special to The Financial- Chronicle)
The eyes of the food industry
the United States as a whole, there
or how soon they will be effective
frankly.
Solutions should be
SAN FRANCISCO, Calif.—Wal¬
is but one servant for every 40 are looking ahead
to the 1960's
worked out in the national inter¬ in restoring economic balance. The ter T. Burns is now with Mutual
families.
Servant help is even and the 1970's. Regardless of eco¬
recent
rise
in
employment by Fund Associates Incorporated, 506
est rather than for polticial ad¬
more scarce in many areas.
It is, nomic adjustments, the people of
morse
than one million and the
' Montgomery Street.
to ameliorate this situation that America are going to eat and eat vantage.
slight decline in unemployment is
we
build maid service into our well. We thrive on competition,
Current
Economic Developments encouraging.
products. More and more house¬ because it brings out our best ef¬
With Kenower, Mac Arthur
Our economic measures and in¬
There is still fear that inflation¬
wives are gainfully employed and forts. We know we have a tre¬
(Special to The Financial Chronicle)
dicators do not tell us when we
ary forces may be stimulated by
mendous economic responsibility,
they especially want products
reach the bottom of a recession
GRAND RAPIDS, Mich.—Rob¬
enlarged government spending and
with "built-in maid service."
and .we shall continue to direct
until we are well on the way to
ert W. Burnham has become con¬
wage increases in excess of the
To satisfy all these wants, food our resources of capital and man¬
recovery.
However, there is good average rise in productivity. For nected with Kenower, MacArthur
processors are spending huge sums power into research, plants, reason to believe that we are near
the present, it looks as if we shall & Co., Michigan Trust Building.
for research to make better prod¬ equipment, products, and publicity
the low point of the current re¬ have to depend upon
monetary
ucts and better packaging, large in the best ways we can find to
cession or that it is already be¬ and fiscal controls to curb infla¬
Charles H. Murray
amounts for new plants and better fulfill that responsibility.,"
hind us.
;
■
tion when it develops. They served
Charles H. Murray, Secretary
Agriculture
'
This
*An address by Mr. Bullis before the
assumption seems reason-- us well last year in bringing an of
Quail & Co., Inc., Davenport,
The agricultural situation looks able when we review what has inflationary boom to an end. Howpress symposium conducted by Chamber
of Commerce of the United States, Wash¬
The ever, we need to develop other Iowa, passed away on June 9.
brighter than it has for some time. happened in this recession.
ington, D. C., June 13, 1958.

calories, they want foods that sup¬




_

.

,

.

Volume

187

Number 5754

.

.

.

The Commercial and Financial Chronicle

Calif. IBA Group to
Hold Conference
LOS

ANGELES,

Seventh

Annual

Calif.

The

—

Conference

of

the

California Group, Investment
Bankers Association of America

thorizes
the
issuance
of
bonds
are: A. C. Karr & Co., Los
Angeles;
signed by lithographed signatures'' Henry F. Swift &
Co., San Fran¬
only.
cisco; Witherspoon & Company,
The

der

Education

Committee,

un¬

the

Chairmanship of Richard
Jones, Mitcbum, Jones & Templeton, has had a very successful
year.
One of their main projects
W.

was

Los

This
open

included

houses,

high schools,

civic

as

contests in the
well as publicity

Training of personnel, educa¬
tional literature, advertising a d
public relati ns also are a part of
the activities of this committee.
Four

the

COLUMBUS, Ohio—Marvin
Yerke

West
a

and

formed

Broad

Associates,
with

securities business.

Marvin C. Yerke,

Inc.

offices

Street, to

at

engage

Officers

new

investment

pany

40

in
are

President; M. E.

houses

urer; Maynard M. Donaldson Vicehav¬
ing been admitted to membership President, and D. J. Weston, Sec¬
in
the
California
Group. They retary.;-;^ ,;,V—

lion.

Form Herrick, Feinstein

Vice-President of Estate Plan¬

towards
Estate
tan

Herrick,

Corporation, its subsidiary.
activity
will
be
directed

His

has

Planning, since its incep¬
in 1925, has planned estates
aggregating more than $3.5 bil¬
tion

Management .Com¬
has appointed Louis D. Cox

ning
C.

Estate

Appointment for
Estate Planning

Townsend

as

Yerke, Vice-President and Treas¬

will be represented this year,

New

Keystone

(Special to The Financial Chronicle)

been

with the local press.

and

M. C. Yerke & Assoc.

luncheons,

essay

Angeles;

Company of Boston, Los Angeles.

the "Invest in America" week.

broadening

the

scope

has
2

of

Planning in the metropoli¬
York
area,
including

New

and

Cox

Trust

National

served'

Officer
Bank

of

and

the

H.

Bingham

W.

C.

Jackson,

Rossman
offices

at

City,

L.

Feinstein,

Samuel

H,

Rossman and Stanley H. Levy.

Roslyn

Trust

&

with

Avenue, New York

Arthur

President

as

Feinstein
formed

to engage in a securities business.
Partners
are
Seymour Herrick,

Nassau and Suffolk Counties.
Mr.

been

Park

D. T. Winter

Com¬

Opens

(Special to The Financial Chronicle)

pany

from

1937

through

1955.
'

Other connections have been with

Western

Electric and Ford

Company.\

vj;:.

ST.
T.

Motor

PETERSBURG, Fla.—Daniel
conducting a securi¬

Winter is

ties

business

Florida

:

from

offices

in

the

Theatre Building.
V-'

-Curtis

21

(2873)

.

.

:

Jr.
,.....

will be held at the Santa
Barbara

''

•

r

Biltmore, June 28 to July 1, 1958,
according to Curtis' H. Bingham,
State
Chairman, and President,
Bingham, Walter & Hurry, Los
.>.

Angeles.

V.

of

limited

hotel

-•••

•••

.

"Because

;•

'

ac¬

commodations in Santa
Barbara,"
said Mr. Bingham, "We are one of
the

few

IBA

regional

that

of

groups

restrict

;(v- v-;-3T

the

membership

to

each convention.

We expect about-

300

this

delegates
ference, with
from

to

about

out-of-state.

large

year's
50

Almost

underwriting

con¬

members

house

every

in

the

nation will be represented,"
The Santa Barbara

will

year

ficial

coincide

visit

of

the

meeting this:

with

the

national

of¬

Presi¬

dent of the IBA, William C. Jack¬

Jr., First Southwest Company,

son,
who

will

be

accompanied by

managingdirector and
counsel, Murray Hansen.

the

general

ROPE

In

1957, Uie national Governors
of the IBA met in Santa Barbara
and will meet in the Channel

again

this

fall,

Bingham.

TRICK

City

according

to Mr.
Governors, from

The

all parts of the country,

including
California, will number

four from
between

75

and

has

delegates and
past, this group
Chicago, New York

in

met

v

80

their wives. In the

Most

amazing

formed

The Santa Barbara

day

which

program

outstanding

con¬

It lifts you

rope.

from street level to sky¬

well-planned four-

a

the myriad tricks per¬

Conference,

patterned after the national
ventions, has

are

by modern wire

and other major cities.

will

national

committee conferences,

include

speakers,
and

a

heights in seconds

scraper

from

stone

quarries

so-

...

.

.

.

hoists

helps build the

cial program taking advantage of
the city's climate and recreational

highways, supports the giant suspension

facilities.

.

bridges

.

.]■"

....

.

One of the main purposes of the

California

Investment

Bankers

to see

that the credit rating of the

State

.

and

mains

-

at

the

municipalities

high

a

standard.

re-

But this

.

mento

a

as

legal counsel in Sacra"watchdogs" of credit

ratings of local and state govern-

ments.

ible

...

of

and

state

in California

bonds
•

million in

•

1948 to $536
The latter figure
national sales com¬

pared to 8.6% in 1948.
The Legislative Committee this
under the Chairmanship of
Stanley
Dickover,
Ehvorthy &

serve you
more

flex¬

underwater service. Petro¬

leum research
a

solved these

problems

unique lubricant.

This kind of

Francisco,

cooperated

Texaco is

a

research, in which

leader, provides benefits in

swiftly built highways, great dams, tall

buildings, giant bridges...
many

fronts to

progress on

serve you.

with the Commission of Corpora¬
tions to secure

passage of several

the

corporations

bills

amending

code.

Mr. Bingham said that the
considered these ~ measures

"

-

made

protected against friction, rain,

even

municipal

year,

'

were

1956.

is 9.8% of the

San

drive.

have jumped

from $257 million in

<'

Co.,

mud,

with

Sales

-

you

giant could not

until its muscles

lative and municipal securities, as
as

which

The

Group has two committees, legis¬
well

over

is

IBA

interest

TEXACO

considered per¬

Progress ...at your service

and in the
investing public.

constructive
of the

.

Forty-one bills

IBA were passed at
session
of the State

tinent to the
the

1957

Legislature

and

signed

by

the

Governor.
The committees were
in

successful

having some bills amended to
to high credit standards

conform
for

public sale and vote require¬
The Group also opposed

ments.

legislation

that

they

considered

financially
unwise.
They were"
unsuccessful
in
opposing
some
bills such as A. B. 917 which au¬




THE

TEXAS
COMPANY

(

77:e Commercial and Financial Chronicle

22

We,

Industiy

The American Aluminum
DONOVAN WILMOT*

By

increased

about the aluminum
industry's future viability in the face of low U. S. tariff protec¬
tion against the competition of subsidized or state-owned
foreign producers. Questioning the reciprocity of the reciprocal
trade agreements, Mr. Wilmot calls attention to the higher
foreign tariff rates on U. S. aluminum; notes wage rates in
competing foreign operations are only a fraction of those
paid here; and looks with misgiving at forthcoming August 1
wage increase which he estimates will exceed 25 cents a
hour and cause considerable soiil-searching about a needed
rise in price. Asks domestic extruding firms to confine their
orders for raw materials with domestic sources and to create
new applications to provide orders for existing surplus capacity

Thursday, June 26, 1958

which

11 y,

I

than
■

was

of

ciation

out

however,

freely

the

several

think
better
less

I
be
if

off

Wihriot

D.

and

small category.

fact

is

aluminum

and

the world.

best in
lost

not

to

the

pro¬

manufacturers in for¬

ducers and

provide
civilian

should know

you

capacity in order to
abundant
supplies
for
and
military
purposes.

the

expand

that

recent

This has been done—at great cost.

-During World War II there was
considerable agitation for the U. S.
Government

enter

to

with

contracts

term

its

for

source

into

action

positive

as

You

industry

disadvantage

handicapped.

window

against

frames;

pound

per

races on

all

assume, are

of

to

from

a

aluminum

taken.

to

and even-

lot

A

ations

T

_

a

.

horse

run

basis!

a

hope that we Americansgive these complex prob¬

would

under the

the

lems

serious

most

considera-

J

your

raw

ests while

sible

^materials

firms/" especially

may

facilities built

you?

at

domestic
urge

mum

:!/"/

as pos¬

friends

we

our

situation, ■ I

again

great cost

.;

fairly

/'V V:/;-;\V'
• :i. own immedi¬

^

Returning to

ate

as

have made among the foreign

nations.
.

dealing

with/ whatever

effort, to

would

all to exert the maxi¬
create

aluminum

more

uses

oducts

and

lieve that if the U. S. is to main¬

greatly expanded domestic capaci-f

tain

ties which

foreign
supply.

its

industrial

strength

thereby

and

p r

provide
now

orders

for

the

exist.

Chemist Manufacturers to

Spend $2.5 Billion
On New Facilities During 1958-59

M. C. A. survey reveals record 1957-59 domestic construction

The

totaling $3.84 billion. Of this, $1.3 billion in 309

program

construction

new

>

projects took place in 1957 and $2.54 billion is

expected to be expended in 1958-1959.

be

spent for domestic construction

of

new

ties

are

1958

announced

and

in

their

This

estimate

is

Louisiana

Washington,
based

with $278
on

top 10

the

activities of companies comprising
the
chemical
industry— already

,

total:

z

second

;*•••'?/

with

$494

are

million. Others in the
Ohio, $228 million; Cal-

ifornia, $188.7 million; New Jersey, $155 million; Florida, $144.7
million; Tennessee, $127.6 million;
Pennsylvania, $120 million, and
Illinois, $119.5 million.
States ranking 11
through 20

the nation's third largest in terms
of assets—and the chemical operations of firms identified primarily
with other fields.

return

is

(1957)

Texas

million and West Virginia follows

V,

C., .headquarters.

Completed

and

Construction.
The
$864.8 million.

1959, the ManyChemists' Association

facturing
D.

struction

chemical production facili-

in

:

Planned Construction, Under Con-

Approximately $2.54 billion will

i-

•

that kind of

no

our

for

only a fraction of the
■J-*.
,
.
for industrial goods for the civilPlease
I
am
not
understand
ian ^conomy, but also in assuring rates paid in this country. I think
aiming this criticism at aluminum „
vital
materials required in you will find the following com¬
extruder tirms. I believq they are
\
/;■.■■;■
•
^ »'
; parison interesting:
a hard-hitting, industrious bunch.
The present wage rate of the
We want to sell every one of
I think they believe in the oldaverage
factory worker in this
$ fashioned idea of working—doing ^e products We produce at puces
country is $2.07 per hour. Average
/ something about the problem in- calculated to return a fail
hourly earnings, excluding fringes,
stead of talking about it. I hope -ft willI be obvious to you that this
in the aluminum industry in the
that they will use the utmost in- Is blghjy necessary it a tair
U. S. A. today are in a range of
genuity, imagination and diligence ls
rea lj.^.
011
heavy from $2.50 to $2.65. In certain
in attempting to make aluminum capital
expenditures we have
competing industrial countries the
uses grow where they do not now
made for these expanded facilities
following wage rates are paid:
exist.
,

Hogan with

Going far beyond' the sphere
merely of aluminum, I firmly be¬

primary industry
remain strong and will find

source.-

or

products, I .tion and then arrive at a policy/
sold to American con¬ which would safeguard our inter¬

buy

serve

properly
certainly not,
to play

enough

your

American

from

*

Ben

I would

sumers;-Isn't it reasonable to ask
you

be

sizable,
or

were

skills. They don't even

established domestic market price.

Almost

would

for

allowance for the difference in

be aware of the
fact that many fabricated products
of aluminum arc now being im¬
ported into this country at eight
cents

Snead

a

be

its

Snead

I am

foolish

not

with

I

golf

Sam

a

£IIogan if the match

may

15

to Tplay
with

fabricated 'however,

on

must

competitors.

willing
stakes

rod.
ex¬

a

foreign

re¬
ex¬

your

at

long-

tual necessity of repayment. I must
of salesmen apparently have for- mention this to give you an idea it increasingly difficult to do so
gotten,
or
never
have known, of the contribution
which 'the unless the Government provides
about
the
good,
old-fashioned, integrated people in the alumi- adequate protection for it against
the competition of subsidized or
hard-hitting,
direct
method
of num industiy have made to the
country as a whole, not only in state-owned foreign producers.
selling.
providing the necessary material Wage rates in these foreign oper¬
Need for Orders
and

such

an

heavy carrying charges

direct

more

aluminum

do
on

economic

our

American

you

And- —-°'What

tariff

-

an

products—the
This

items'

etc."?

expenditure of be¬ This proposal, was rejected by our
tween $1,500,000,000 and $2,000,- military authorities who insisted
000,000. This is a lot of money- that this country should provide
all of it provided ^privately and its own facilities and therefore not
most
of
it borrowed,
involving be at the mercy of a foreign

were

written

most

estimate,

we

all

would

for

the

toi

realizes that this
excellent market

is

make-on

can

presses"?

about

New

Everyone

you

trusion

duty

tubing'- and

shapes,

which

20.

country

expansion plans
of
the aluminum industry as a
whole involved, according to our
the

past

months.

in

import

about

put

like'to

"What do

government*to

the

truded

Expanded Output

Up to now I have stayed away
from facts and figures. I
think,

have

so

over

mentioned

question:

the

want

York on Tuesday,
Somewhere along the
route we are going to reach a
point of reckoning. In - fact, we
may have already passed it.,?

May

Industry's Expansion

handed

been

The President

realize.

this

garding

this especially in his speech before
the American Management Asso¬

platitudes
which

adv

apparently indiffer¬
price increases.
That sit¬
no
longer exists,$ as. you

the subject, I'd

on

done

with the competing
industrialized foreign nations.

•* /•*;

.While

were

to

1.

Ju-.y

business.

American

be

our

are

relationship

on

dollars,

more

in the

economic

the

industry

of

the

effective

become

won't require any

a

am.

tired

out

while

will

but they eign countries. The extruding in¬ when there are* abundant, even
better judgment dustry and the Gov.ernm e n t excessive, supplies available to
he had to exercise when he wanted the domestic producers to you
right here in this country

involve

what. Person-

little

itself

long

uation

to discuss
conditions have

or

a

people

propose

further

American

soon,

"cost"

For

stances it does, he wR wake up
some morning to fmd^.he^is no
"bottomed out," are going "side- longer
smalI business .but b.
business." The problems then may
ways," will "edge up" or "fall off
don't

I

whether business

workers in many
going to continue to
have jobs and the populace gen¬
erally to enjoy our high standard
of living, then something has to
industries

to the

many

that

leadership, if

to 10 cents per pound as compared
1 V\ cents U. S. import duty

if

of

will

ent

resulting

others

American-madt

for

The ^tariffs

against
Americans
shipping
into
these
countries are something like six

share the

I

costs.

conditions

aluminum?

usu-

well-considered action is not

some

by Alcoa officer

is sounded

than

more

problems

alljH"difficult

taken

An alarm

-of

economy

number of

a

opinion

Pittsburgh Pa.

industry, .and the
as
a whole,

an

as

American
face

from

Company of America

Vice-President, Aluminum

a

"...

.

(2874)

.

.

before, but for the sake of
emphasis I will say it again. What

and older facilities for the produet ion of aluminum and alunainum Products. We are the last

is

ones,

This

has

been

said

many

times

■

needed

is

perspiration!

"Crpativitv"

There

'["a

and

-

capacity to produce extruded
shapes in this country — I don't
tell

tp

find

to

new

you

that.

We

applications

thereioie, to make unjusti-

need

y

Pricing Policy

Realistic

which

provide orders for the exist-

_____

France

West Berlin

_____

matter

of

V;1
-,

New York, Virginia, North
Carolina, New Mexico, Kentucky,

slightly from the

are

survev

Indiana,

Georgia,

Oklahoma,

Michigan and Mississippi,
Primary considerations in the
location of chemical-producing fa-

Projects nov/ underway will cost; cilities, according;<■ to;> the MCA,
$1.83.billioh?- The price tag generally are the same as those
scheduled construction is esti- for other industries;—availability'
mated at $708 million!- ?
;
v
of raw materials and labor, prox;

*i

about

\483
;

The

_

.39

up

estimate, inprojects already begun
and
119
projects scheduled for
ground-breaking in the near future and completion before 1960.

.,.331?
.355

figure,

eludes 322

$.243

-

____________

Netherlands

V .\

on

reciprocal trade

agreements has been much in>tne

"

-

results, of the! imity to prime markets and ad6survey;'. chemical quate transportation.
^vV
telegram to the House Ways and producers in 1957 completed 309
Regionally, the West South CenMeans
Committee
on
Tuesday, domestic construction projects at tral States — Arkansas, Louisiana,
news

One factor Which has given the
ing capacity. Until that is done aluminum industry an advantage
there is 'bound to be a scramble over
competing industries
has

will

Italy

priee concessions which can
f
aims I have jus
described.

tremen-

dous

have

Japan

The

1907-58 MCA

of

late. Your President

sent

According

to

MCA's' annual

a

May 20, in behalf of the Alumir. a total cost of $1.3 billion. ;
/
Texas and Oklahoma—lead in tobeen its pricing policy. This pol- num Extruders Council urging re¬
tal
construction for the
1957t59
jby has been' an important item
A Record S3.84
jection of efforts to increase tariffs
Billion,-period with a collective total of
are
in the position today where in aluminum's rapid progress over
on
primary aluminum and semiCombined estimated total on*$1,422,077,000. The South Atlantic^
there are all kinds of capacity to die. years.
Because it has been fabricated products. This telegram construction expenditures for the States—Delaware, Maryland, Vir-y
produce extruded shapes and a designed to realize a modest re- stated in
part: "Imports are essen¬ three-year period, 1957-59: a rec-.'ginia, West Virginia, North Carosurplus of aluminum with which turn ™ investmentirather than to tial to survival of small businesses ord
$3.84 billion. This represents lina, South Carolina, Georgia arid
to make "therm This'is the very take,all- the traffic would bear at
engaged in this industry, which 750 .projects by .344 companies in Florida—rank second with $688,situation
which
I
predicted
in any °ne time, this policy has en- are
400 communities of 42 states.';
being
..'400,000.
Third with $466,459^000
squeezed
by pricing
November, 1955 would come to couraged consumption of the metal
practices
of
the
domestic1 'Big (vThis figure does, not) include costs-are the East North Central States
pass. You wanted metal from us and enabled every segment of the
for
Three' primary producers." ! v /'
general /pffice/^i sales
office, —Ohio, Indiana, Illinois, Michigan
then—we want orders from you ^dustry to increase its size and
warehouse or other separate serv- and Wisconsin.
v /•
?
now!
strength.
Compares Tariff Rates
ice
facilities.^ .Foreign'.construe-/
Regions following are, in order;
The
aims
and
tion and government-finance con- Middle Atlantic, East South Ceriambitions
of
has, however, been impossible
I think it would be appropriate
non-integrated
and
tral, Pacific, Mountain, West North
integrated to absorb the increases in wages for me to take time out at this struction, too, are excluded.
business in this industry are the and benefits and the consequent
Texas, ranking second behind. Central and New England. Conjuncture in order to make a com¬
same—to obtain business in suf- increasing
material costs which parison for you of the tariff on New Jersey in chemical produc- struction not announced for speficient volume and at prices which have occurred with monotonous imports
is the recipient of cific areas accounts for $73,650,000.
into the United States tion, again
will yield a fair and reasonable regularity year after year.
The versus those now effective for the highest total investment for
The 1957-59 estimated total inthe three survey divisions of vestment in production facilities
profit.
The
difference
between next increase m the aluminum m- imports
into
certain
European

for

•

the

inadequate

business

is

which

amount

available.

.

of

•

We

•

.

dus1;ry under the last leg of the
three-year contract between the
lancers and labor is due Aug. 1
and unless the union can be persuaded
forego ?r de*er, xt' J*ie

big and small business is largely
question of where you put the
point. Personally, I have

a

decimal

always
and

had

tremendous

admiration

businessman.
whole

staff

for

He

of

the

can

small

have

specialists

shop with whom he
He

respect

doesn't

in

.

^creased wage rates and benefits

a

lhey Jijj reaJlze thls year wdl
®*ceed 25+1cents Per man hour If

his

consult.

oAoursV
Suable indistrTous'and Iv.Sv tial* ««d'we
must

make

his

J 21
neTfto Tr'ow pnd as
ness to grow and, J
Americanh

*An address

decisions

own

? hff ^

in
in

™nvin

many

m-

by Mr. Wilmot before the

Aluminum Extruders Council,
burg, Virginia, June 4, 1958.




Williams-

.

do> but

MCA Chemical

shaU have to toide

we

want to compen_

Industry 1957 Construction Survey by Category

The U. S. tariff

on aluminum pig
ingot today is 1.3 cents per
pound. On July 1 of this year it
will be reduced to 1*4 cents per

(In Thousands of Dollars)

and

pound.
France

valorem

has

a

duty

of

20%

ad

primary pig and ingot.
top of this, aluminum items
are subject to 25% sales tax.
Italy
has
a
tariff
on
crude
on

On

what to do about Prices' We don^
like Price increases any more than
you

countries.

aluminum, alloyed
ad

valorem.

On

or

most

not, of 25%
semi-fabri¬

sate our, employees properly and
eam a fair return for»OUr Stock-

cated products its tariffs vary be¬
tween 25% and 31%. Where, may

holders.

I ask,

is the reciprocity in this set

Fertilizer

Chemicals

$45,575

Inorganic Chemicals (gen.)
99,000
Organic Chemicals (gen.)_ 171,987.
Metals
76,175
Petrochemicals
104,750
Plastics & Resins
151,500

18,050

Synthetic Rubber
Textile

'

Miscellaneous
a

32,800

~
^

Totals

8,125

^

:

L

67,870
25,300

i

$707,962

$210,875
710,521
987,049
614,825
242,415
451,440
297,780

$114,800
260,586
297,403142,318
49,115
198,120
134,500

$50,500
350,935
517,629
396,332
88,550
101,820
145,230

161,000
107,215
62,350
;

70,000

.31,220
4,250

-

■

$1,835,166

$1,302,312

'
\

Total

Completed

91,000

Fibers

Laboratories

"

*

Under

Construction

Planned

Category

-

$3,845,440.

Volume 187

Number

5754

.

.

.

The Commercial and Financial Chronicle

(26*5) "23?
for general

organic chemicals
maintains the No. 1 position in the

the products
of- chemistry," he
continued., "Chemistry contributes

classification

much

by

category.
for organics:
$987,019,000.
General inorganics at
000

Total

$710,521,-

tion and

place, followed
by metals, $614,825,000; plastics &
resins, $451,440,000; synthetic rub¬

"Therefore," General Hull con¬
cluded, "the fact that this vital

petrochemicals,
$242,415,000; fertilizer chemicals,
$210,875,000*- textile fibers, $161,000,000; laboratories, $107,215,000,
miscellaneous

a

industry is demonstrating
own

and,
more important, perhaps, an abid¬
ing confidence in the future of

350,000.
The miscellaneous group

;

covers

our

expenditures difficult
in a more specific

to classify
category, as

well

confidential

as,

data

chemical
natural

whole."

from

$12,000,000

the

Stix Adds to Staff

from petroleum and

gas

comprise

the

Central

issue was won by the
group
competitive sale June 24 on a
of

99.9599%.

will

be

used

by the

The

new

accrued interest in each

change.

1

Tegtmeyer Adds

to

CHICAGO, 111.—Dalward
Baxter

Giddings,

Dunbar,

F.

William

Swan,

Edward

and.

Wm.

and

the

production

heating service

J. De-

Paul

G.

Kougias,

S.
Needleman, Charles
Philip J. Roarke, Edmund

and in rural areas; the purchase
and sale of natural gas in 26 cities

towns,

Staff

(Special to The Financial Chronicle)

Noty,

and sale of central

of

:

eration, distribution and sale of
electricity in 105 cities and towns

financing

company

the

for

to

H.

IjOuis

F.

H.

South

cost

of

It

is

program.

Peoria and Springfield. Elec¬
tricity is furnished in an area of

approximately 2,500 square miles,
having a population of more than
446,000.
;
,

ended

Ex¬

revenues

income

net

Charles

approximate $42,300,000, of which

Stock

$38,417,000 and
$5,426,000.

Bruzzi,

case.

Central Illinois Light Company
in Illinois in the gen¬

operations

Midwest

of

is engaged

penditures for 1958 and 1959 will

the

showed total gross

pany

bonds will be redeem¬

par, and
redemption prices re¬
ceding from 100.874% to par, plus

bers

of

next

regular redemption prices

estimated

petro¬

spent

special

Stix & Co., 509 Olive Street, mem¬

that

be

Willey

Werner

are

Tegtmeyer

La

Salle

now

&

and

with.

Co.,

39

Street.

in

Net proceeds from the

(Special to The Financial Chronicle)

offered

1988, at 100.874% and accrued in¬
terest, to yield 3.95%. Award of

in

use

25

Illinois Light Company first mort¬
gage bonds 4% series due July 1,

bid

chemicals category.

construction

ex¬

In

an

unaudited

for

March

statement

the

31,

,

12

1958,

of

months

the

com¬

New Buck Branch
SPRING

LAKE

—Richard

J.

opened

branch

a

BEACH, N. J.

Buck

bo.

&

office

in

has
the•

Essex and Sussex Hotel under the

management of Richard P. Aikin.

Metals Category

v

The: MCA

;

a

of

June

on

ST. * LOUIS,; Mo —Fletcher S.' provide in part
the textile fibers ;
Products produced for Crowe has become associated with its construction

included

grouping.

as

economy

issue

an

at

other categories. Only those fibres
produced by chemical synthesis
are

nation

our

which

will

$23,000,000

year.

at

Stuart & Co. Inc. is
manager of an underwriting syn¬
dicate

and

ranging from 104.88% to

Halsey,

con¬

active ; confidence in its
future implies a confidence

in the future of

$62,-

group,

a

tinuing

$19,300,000

year

able at

Illinois Light Bonds

modern weapons for

our

this

Offers Issue of Central

defense.

ber, $297,780,000;

and

our

about

Halsey, Stuart Group

food,

clothing,
and shelter; it is essential to our
health, amusements, transporta¬

in second

are

toward

metals

announced

category

has

that

been

the

broad¬

ened in this
survey to include pro¬
duction
facilities for all
ferro¬

alloys and other special metals.
Reason: all are refined or modi¬
fied by regular chemical
processes,
to a great extent by chemical-

producing firms.

■

v '

r

v

These metals include
zirconium,

/.

titanium, niobium (columbium),
bpron, tantalum, vanadidiiij: beryl¬

,

lium, uranium, alumina and mer¬
cury., Excluded, lor example, are
copper, m a g n e s i um,*/aluminum,
lead and zinc.. v;:v' '><■.;

\ Removal from the over-all totals »"■

.

of

expenditures for metal

ing facilities included
for the

vey

first

lowers, but does

not

record for combined

estimated

{

-

for the

process¬

in the

time

sur-

this

year

J
.

negate, the *
expenditures

1957-59

period.

Considered particularly signifi¬

cant

in ihese

times

is

the esti¬
mated investment in research lab¬

oratory facilities. The three-year
figure of $ 107,215,0 00 includes
$31,220,000 for completed con¬
struction, $67,870,000 • for under
construction and $8,125^000
planned construction,

-

for

The
industry's total research
expenditure, including operating
and: maintenance costs, currently
IS estimated at approximately $500
f

million

a

year.

;

j r;Leads Growth Rate
..The chemical industry long has
highest growth rate
for major manufacturing indus-;
tries./ Considered by many to be

.

maintained the

the most dynamic segment of the

nationaleconomy, the industry
early in 1957 moved into 'No.. 3
asset;1, position for all Tiianufacttir ihg;' Total assets today; $19.6

btilipn^"'r'\X':
J "For 12 consecutive years, Chem¬
icals
a to

&

Allied

Products—as

listed /in

Federal

they

reports—

have averaged a total capital in¬
vestment for new plant and equip¬
ment

of

more

annually.

than

•

'

'

$1 ' billion

'

.

,

'

The 85-year-old Manufacturing
Chemists' Association is an indus-

f,:

.

IT'-

try

group representing more than
90%
of the nation's chemical

production capacity.
Its annual
is considered definitive,
because it includes all

/

'JP

-

tZK-Z'M

>

f

^

survey

however,

You

chemical companies in the United

chemical operations
of firms more closely identified
With other industries.
Examples
of the latter are the rubber and

can

States and the

Now, for the first time,

«'

The MCA President

is Gen. John

and

Hull, USA (Retired), former
United States and United Nations
E.

Commander

in

can

said:

especially

international

unrest.

the

worry

about plastic products softening

are

made of Cymac® metkylstyrene

j

Information of interest about the
organization, products and activities of
American Cyanamid Company and its
a new

book¬

"This is CyanamidYou

may

subsidiaries is contained in

and utensils shown here,

also be washed in automatic dishwashers without distortion. Available in all

make

variety of new and improved plastic products. This is another example

possible

billions in

heartening to the people of
United States in these times

need to

colors, odorless, tasteless and unaffected by sub-zero temperatures, Cymac will

\ "I believe that the chemical in¬

dustry's investment of
the future should be

you

"warping" out of shape in hot water—if they

Products molded of Cymac, such as the housewares items

making the official announcement
results, General Hull

great

rigid thermoplastic material is available that withstands

plastics, developed by Cyanamid research.

In

the Far East.

of the survey

the chemical

a

boiling water. No longer will

oil companies.

Cyanamid plastic in boiling water!

put this new

a great

of how

Cyanamid research is working to bring

you

better products at lower costs.

let,

obtain a copy free on
request^
Public Relations Depart¬
ment,
mid

American Cyana¬

Company, 30

Rockefeller Plaza,
Neiv Yoi
York 20, N.Y.

of

For
CFAJVAMI

industry is at once a

keystone and a barometer in our
national economy.
:
"There are few industries not
.

'

dependent

to

a

large degree on




AMERICAN

CYANAMID

When in New

COMPANY,

30

ROCKEFELLER

PLAZA,

NEW

YORK

York, visit the Cyanamid Exhibit. Open daily 11 A.M.-9 P.M. Main Floor, RCA Building.

20,

N.

Y.

Address

'

'(2876)

g*

The Commercial and Financial Chronicle

European Coal and Steel Community Financing

British Bank Rate at 5 Percent

notes

Authority offered

Dr. Einzig writes from England on the reasons for the British

Underwriting groups managed
jointly by Kuhn, Loeb & Co.,
the First Boston

Lazard

Freres

Corporation and

&

Co.

decade

to

bonds will

total

of

deemable

the

$50,000,000 bonds and notes of the

1968 at

High

to

optimism about the Government's political prospects
increase in its popularity but due to increased

any

Labor
LONDON, Eng.
months
bank

after

rate

of

increase

7%

cuinstances

the

Sept.

on

crisis figure of

5%.

When

it

was

expected

that

the

dcma

mmm'

it

raised

Vas to

au¬

return

o

the

t

o

>

be

re¬

Paul

Dr.

Einzig

until

March, and it took three stagesiin
months

to

nninn« Unvro been
unions have

complete

pressing relent-

the

bank

main

in

the

y

much

rate

change

object

bank

unless

the

in

offering

in

of securities

"The Offering

.

comprises

$35,000,-

our

production
of
in the next

maintain the

can

since

set

Gross

the

National
billion

$575

w

Collateral Conditions
for physical volume
of goods and services. What are

that

La-

in

the

of

the

collateral

conditions

likely to be encountered

are

next

decade?

(1) Prices: I

can see

have to
if it is to help the Govern-

stability of the cost of living, to
„

dicrontent

layes

On

of

the

found

to

rate

7%

stability

until

and

the

atmos-

economic

compared

with

1957

and

Sgld victSs.
the

test of endurance.

Government
hoDe

un

altogether

bevond the extent

increase

an

The

have given

checking

wage demands

of

to

seems

of

in

productivity

Although productivity is still static and is

3%
as

increase
to

seems

decline,

of wages by

have been accepted

permissible.
A

an

inclined to

even

of

round

a

3%

inflation is

improvement

tion

But

it

that

the

Lhd

other

period

prices

of

the middle

amone

the

of

that

H

relative

has

been

laS

experienced sinw
autimn has
not restored its popularity amidst
stagnating business conditions,

is

on

undoubtedly

Whether

trvfmfto

in

get the

to a rather steady rise in
price level, for two reasons:
Politicians
in
this
country are

committed to the Keynesian thethat
government
spending

ory

.

represents an increase of $10,000,000 over the principal amount
originally
registered with the
Securities and Exchange Commis.

The

sold

bonds

,

^

priced

are

at

people

(be
the

expansion
increase

of

of

the

economy,

employment

97%

and

the improvement of the standard
of

living of the six Member Coun-

tries through creation of

n__

market

mon

substan ially equal amounts

in

cuEfnJy.'

•

.

...

...

.

The High Authority

,

,

obligated

is

to redeem the bonds by maturity
*n
substantially equal annual
installments beginning in 1964 at
100%. At its election the High
Authority may redeem an addi-

for

coal

a

participating

com-

ening

im-

to

productivity and increase
production.
The
funds
of
the
High Authority are obtained primarily

through

levy

a

is that I

reason

prove

the

on

Community's coal and steel
duction and by borrowing.

pro-

are

right

No.'matter

them.

how

they may be—and it's been
proven time after time—the theory will not down.
The second
wrong

steel,

and

enterprises

behind

of

union

the

can

iron

leaders

see

of

our

of the

Senate

committee, nothing

is going to be done soon to break
labor's

monopoly power and its
ability to obtain annual wage increases
out of all proportion to
increases in productivity.
(2\

Hours

labor-

of

If

ing the $100,000,000 Export-Import
Bank loan,

let's look at longer
lower
that appear
ess comfortable ami mote .costly
Promising:
to operate. I would expect some
major changes in the mode of
Cites Promising Areas
personal transporation in the next

cIasses
serltfld

hkely to

are

remain

re-

.

infla-

comParlied bJ ?,rfally substantial

0f

tn

dmiht

exPansl°n °* trade and a really

energy.

onen

.

batteries

storing

the

for

of

What its forms will be I

reduction of taxes.

S

main within the limit of

c^ec^to*be boom. In order to be
able
reduce

do not know, but you can rest
a sPecta9ula^ boom would assured that mankind will travel
st^p up the rAse. in wa8es an^ under different motive power a
if the credit squeeze should be prAC9s* ^lld drastic cuts in taxes
decade hence; will warm itself
further
relaxed
it
is
doubtful are imP°ssible in the absence of with different fuels; will turn its
whether wage increases would re- drastic
economies which would machinery with - new types of
3%

per

taxation, the Gov-

annum.

ernment

the

Why the Changed Government
v
Policy?

would

-

Government's

decision

layed action" effect of recessions
on

the

British

pects

increase

an

advices

from

the

United

prevent

States

reduction
t.ho

tnv

Hence

pessimism.

of

the

bank

rate

to

and

clllturP

b*
Chancellor of the
Exchequer to
encourage capital expenditure.
There

is

even

some

talk

E

Budget^ to stimulate

demand.
•pjj
™

/
^

a

about

.

.

a

May

1960.

But

inimW

a*

:

*

Labor

^'ucdbe 111

us

popuiaiity

is

(Special to The Financial
Chronicle)

,

'




'

trojs wdj

*

,

This

with

pjay

badly

over-

still magic.

Mass

electronic

con-

part jn }10id_

a

ing down labor costs during the
next decade.

And this will apply

not

manufacturing,

only

also

to

and

to

tools

new

office
Thi

and

and

has

x?.

eauinment-

hq

A

in'

been made

'

PnnrJ

start

|pplication
b?okkeeing

th

computers

JLtinff

KinQS.

hi

population

Asjndicated earher,

the working ages
rapidly than the
population through the first

will

in

less

grow

on v
Only

±SUt

equipment itself
rapidly
rapidly

New applications
^applkat/ons

fs ITing
and
a
are

the

war,

necessary

to

controf

With the

p

n

wider adopequipment is

Survival.

Automobiles:

y—*i

the

electronic

There

ohanee

in

thn

really
ha«sin

now^raffihated

qm^ Heartfield, design of motor cars since the
Southwest Broad Street.

late

traditional

two-story residence,
there has been relatively little
change in the materials used or
in

basic

twenties.

They

are

construction

methods.

Housing costs, consequently, have
risen out of proportion to the
advance in incomes and in other
prices. There is room here for a
violent revolution, and it could
come.
People are slow to adopt
unorthodox methods and materi-

als in something that represents
large an investment as a home,

as

but this is nevertheless an area
to be watched closely.
Certainly, such things as combined central heating and air conditioning will become much more
common and will tend to obsolete a great deal of present housbig. Perfection of the heat pump,
its

down

initial

cost,
Use
of solar heat is another promis-

could open up new
inS

avenues.

If unions

in

pressing their
suit for shorter hours during this
period, the projections for gen¬
eral
activity that I have given
will
probably not
be
realized.

wffl'bTcoSStod

continued

very

tight labor

fancier,

The second half of the decade,
however, is another matter. Dur¬
ing that time, the population of

Water: Many of us in the East
don't realize the extent of the
shortage

problem

section!

in

some

country

usable at
dav

soon

working

are

a

CUUUliy,

threaten^ to'stifle

Po^uS

problem, of

the
lilt

of
vl

adequate water

companies

ma k

i»

on

reasonable cost.

one

of

them

One

will

,

sue-

sue_

new

industry ot no mean proportions.
Metals:

chances

'}d ^ork
f

Nowhere

been

metallurgical

made

have
than

greater
in

laboratories.

are

week

eood

verv

be

can

nresent

40

that

reduced

hour

stand

aid to perhaps 35.
(3) World conditions: The logiexpectation, barring war,

cal

would

be

rest

of

may

be

for

the

economies

world

of

the

to

advance,
percentagewise, at a faster rate
than the United States, principally because other countries are
starting from a lower base. Many
of them could double their standard of living and still be subnormal from our point of view,
Most of them have now advanced
beyond the subsistence level,
where their entire time and en¬
ergy are devoted to feeding their
bellies and covering their backs,
They are beginning to appreciate
that life could hold more than
bare existence.
In their climb
from that level, even though it
modest in

terms

consumption,

of

vast

per

new

markets should open • up. If we
Play our cards right, we can share
more

than

a

little in development

of those markets. For that reason,
we at Standard & Poor's; believe

that companies with strong foroign positions may hold greater
the promise
over the next
decade

g''seawater

day soon one of them will
9e9d and we'll have a brand
...

populatioh

;

capita

avenue.

strides
has

the

"otablyihe SouthWesiTwhere

vast amount of paper work under
which business has been snowed
of

con-

im-

markedly

constantly

sTaUsUc^Veleaneh:

have in

supplanted

degree

other
UU1C1.

nmniinf

since

the split level

siderable

The
ine

stert
Start.

n
a

,
j
found
taventorv
being found, in inv<

tion

successful

Housing: While the ranch house
and

pVt

p^ved
proved

t

decade. But don't ask me what
their nature will be.

bringing

controls.

new

nossihlp

digital

„nd

but
mining

of

business

•
r

f

phases

some

concentrating.
You'll
see
surprising tricks done with

some

SOUTHERN PINES, N. C.—Ar-

mex-

pedient to leave the election to
the
very
last
moment
because
it

thn

Joins Dietenhofer Firm

inex-

«

in

nnnnnnbritv

Labor P^y's unpopularity.

Parliament
it

Partv's

production

even

but because of the increase

m propwa-

Automation:
worked word is

bank^peration, insurancLvritin°g;

revival' oi haTlncreased

.

dissolving

jinh

Ste.JSSJ?

tion for
general election is
another explanation of the
change
of policy.
It is true, there is no
need
for
until

in

jsh industries would produce in
«>e long run the opposite effect,
Nevertheless optimism about the

L

^?P"La"ty,
the

rise

be Popular for a time, but the
inevitable disadvantages of any
such arrangement to British agri-

the

u..

rnnpaccmn

the

of an agreement with de Gaulle
to disarm French resistance to the
European Common Market would

_the development of this

of

wave

accentuate

would further reduce
the Government's determination
to resist inflation. The conclusion

Even better

during recent weeks have failed

increase

gotiation

economy,

seriously exunemploy-

in

ment in the autumn.

to

There seems to be no solution
which would be an unqualified
blessing. The arrangement of dol3ar facilities which are under ne-

There is much talk about the "deabroad

have

Pnces-

to

relax its resistance to inflation is
due in part to
deflation fears,

and the Government

would

Budgetary deficit, which again

|

energy.

ire

.

their position should
continue to deteriorate as a result
We've mentioned space travel,
of the Government's inability to That is certainly a major candiexcessive wage demands, date. Nowhere is more work be™e. leductl°" of *
late oi ll}~
done than m the investigation
hS?# rlcfnS
W
and taming .of new
en"
not J1 ltsell1 restore the Govern- ergy. Atomic energy. Solar enments popularity, unless it is ac- Crgy. Oil from shale. New types

5%

a

come, but
the areas

of

we

.wour?, °\ la™af
to achieve the level of prosperity
indicated here, there will be little
amounted to $165,622,000, includ- or no cut in .the hours of labor

w

wd not end by getting the worst some
° both
F?r the ™ddle most

trade

economy.

Outstanding borrowings of the
High Authority on Dec. 31, 1957,

The "Golden Sixties"

both worlds, the Government things to

weak-

no

grip

on

Despite the gruesome revelations

total

bSi

whether the improvement is sufficient to justify a reversal of the
restrictive monetary policy. And

The

alter-

no

native

are

from

and

much

So

The

$100,-

can

1965

"

some

999 principal amount of 5% se- 000,000 loan due 1958-1979 from
Ve ^ y ' 1978 and the
United States Government
$15,000,000 ^ principal amount of through the Export-Import Bank,
7,2,
s€r.laA s^CoJnnn^nnS
if m
Tb<r Community is one of the

of

That

Product

by

half of the next decade.

mands

pace

war.

$700 billion by 1970.

also

*?.rd Ereres & c°: .In,195£ the
High Authority obtained a

con-

believe

me

of

000,000 principal amount of bonds

^as ^tabhsned in 1951 by a and notes through a group
5, .ye?r vjfaY among Belgium, headed by Kuhn, Loeb & Co.,
; ra»ce,
west Germany, Italy, First Boston Corporation and

and

in

services*

and

growth

few of the

a

make

in

advance

our

the High

_ac^1r/je
interest, to yield »po this end the High Authority
begin fairly 5.24%. The serial notes are being is authorized to make loans to

would

SOOn

a

v.

wage inflation, it
justifiable to reduce the

not

was

wages.

check

to

public

uPnited statPes

just

are

siderations that

reach

of^ the Community, which

out

carrying

of further revolution

sion.

ery

the

nrpssintr rpfont

lessly for higher
Since

July

Authority was made in
April, 1957, with the sale of $35,-

with

•

was

after

re-

the

charged

wtment t0 Win the electlon*
2
niatu* y at Prlces to yield
unions
Tn snifp ofthe
in
The Government undoubtedly 4.60% in each case.
nnemnlovmonf the rierlinfnff trend
realizes that economic recovery
Principal of and interest on the
nf S? limine
/nH fho wJ would not help unless it is accom- bonds and notes will be payable
ins of criee Increases
the trade Panied by a reasonable degree of
in New York City in United States

increase

optionally

1,
prices ranging from 101%

previous

tell

three series of $5,000,000 each on principal coal and steel produc- and deficit financing are panaceas
JulY *»
?
^ a'
9 L.
f ing areas of the free world. It for all economic ills. The vast
amount of bonds being offered was established to contribute to/ majority of the

without

proceed for at least
12 months before the general election. This means that the recov-

.

three

would

a

the

You

be in the cards in

may

ment it has to

even

begin its

duction

Gov-

be

and

on

anything about

say

delay,
For the electorate is not likely to
be influenced by the evidence of
last-minute changes in the trend,
In
order that prosperity
should
yield results in the form of increased support for the Govern-

conditions

soon

gradual

it

the

to make a beginning
with the improvement of business

of the year. In
fact they were
to

improve

necessary

after the turn

unable

to

also

100%.

Steel

and

purposes

'

chances

wiiment's
ernment's

mm

pre-crisis

bank rate

,

order

a

of the European
Community. The
High Authority is the executive
branch of the Community and is

be able to choose a favorable

In

would be able
t

to

tu

'§§1 moment.

thorities

in cir-

too favorable

the Government. Political tacticians prefer to be able to fix the
date sometime
during the fifth
1
J
i:r4U
year
of the live-year period, so

19,

1957 the Bank of England restored
it to its pre-

was

take place

none

June 25

on

Authority

Coal

Party's unpopularity.

Exactly nine might have to

—

the
to

way

goods

offered

to

metals during the next decade.

tional principal amount of bonds
annually not exceeding the mandatory redemption payment. The

victory in its endurance test with Government, and attributes
to

what

the

High

to investors.

increased

public

I

am

metals to this audience.

These

Government's decision to lower the Bank Rate to 5% and to
relax prematurely its anti-inflation efforts. Refers to compro¬
mised acceptance of 3% instead of 5% inflation as a union

not

of the

Thursday, June 26,. 1958

.

me

$50 million bonds and

By PAUL EINZIG

who

.

.

the

Re-

than strictly domestic firms.
I

(4) Raw

am

one

about the
possibility that the United States
may
become a have-not nation,
lor three reasons: First, the laboratories
are
finding substitute
WhG

does

not

worry
_

materials at

a

rate that is someSec-

sistance to heat. Increased tensile times embarrassingly swift.
strength.
Resistance to fatigue,
You've see the progress of recent
years

in

these

directions.

But

instruments and techniques
are
for
discovery
of minerals
supply;
greatly
increasing
the
su
ond,

Volume 187

better
to

Number

5754

.

.

.

The Commercial and Financial Chronicle

farming methods continue

result

in

surpluses,

despite
shrinkage of the farm population;
and
scientific
forestry promises
an
ample supply of wood and
lumber.
Third, partial reliance
on

other

be

a

parts of the world

good thing,

may

providing other

countries with the dollar balances
with
which
to
buy our goods.
We'll

have

to

become

ternationally
minded
and
tainly more skillful in our
tions

outside

dependence
our

borders, and
others for part of

material needs may well

raw

creditor

as

Upsetting

ending

ing briefly on the things that
might tarnish the glitter;, of the
"golden sixties." While I firmly
have

the

forecasts

better

a

of fulfillment
resent

than

and

the

decade

next

will

bail

here

made

Municipal Forum

Such

E.

Treasurer

attitude,

an

William

both

York,

generally

here

as¬

and

abroad,
could considerably alter the pat¬

The

of

Bachert,
The

Municipal

York

at

the

of

Forum

of£

succeeds

Robert

Doremus

tern of the sixties.

&

The

However, I don't think it will
happen. I think we'll get little

composed

reminders

Co.

LOS

New

meeting. He
W.
Fisher, of

reality, such as the
present recession, from time to
time, with the result that growth
the

decade

I

another

corporate
smart

will

don't think
world

war.

be

there

to

will

believe

I

management

enough

fairly

will

be

profits

make

substantial enough to make attrac¬
tive
the
financing of industrial

growthhwith private capital.

'

various

those

Forum

is
in

He

ANGELES, Calif. —Leroy

fi¬

phases

of

626

municipal

was

South

formerly

Spring
with

Co., Inc.

Joins

Street.

Bache

Callaway, Jr.^ Viceof
First
of
Michigan
Corporation, was elected VicePresident;
William
H.
Moser,
President

Vice-President

Wells,

Inc.,

of

Andrews

Secretary;

and

&

John

Treasurer.

:

W.

LOS

J.

of

Shearson, Hammill

with

Philip G.
Witherspoon.

—

Company, Inc., 243 East Phila¬

delphia

Street.

Street.
Daniel
D.

With Kidder, Peabody

ANGELES, Calif. —Ervin

Urman

is

with

now

Shearson,

Hammill & Co., 520 South

Neal

"7~* Fulkerson, Vice-President

&

now

(Special to The Financial Chronicle)

Kayes, of Lee Higginson Cor¬

poration,

Witherspoon

(Special to The Financial Chronica

&

WHITTIER, Calif.

With

H.

David

of

Simons is

David

P.

&

Co.

Curtis,

—

Walston & Co. Inc., 550
Spring Street. He was pre¬
viously with Daniel D. Weston.

C. Seymour has become affiliated
with Paine, Webber, Jackson &

interested

ANGELES, Calif.

South

nance.

of

of

,

Bourke has been added to the

staff

With Paine, Webber
(Special to The Financial Chronicle)

of

annual

LOS
N.

New

President

Walston Co. Adds
(Special to The Financial Chronicle)

elected to the Board of Governors.

Assistant

Bank

elected

was

Trust /. Company,
and
Curley, partner in Haw¬
Delafield
&
Wood, were

Frank E.

kins,

out

us

eventually."
sumed

Bankers

Bachert President of

even

He

formerly

was

Reeves &

Weston

&

Spring
with

Co., and Daniel

Co.

(Special to The Financial Chronicle)

~

■

BOSTON, Mass.—Lucy A. Rob¬
erts

of

has

been

Kidder,

Federal

added

Peabody

to

&

the

staff

Co.,

75

Street.

chance

even

therefore rep¬

the

-

business

intelligent basis for
planning; it; would be

.

conceited of

me

views

not:

are

There

are

more

if we're wrong temporarily,
the
rising level of activity certain in

be

discussion,

I'd like to round it out by dwell¬

believe

"Prices

say,

up

healthy.

Factors

this

to

forever. Things are
attractive than money. And

over

nation.

Possible

Before

skills

our

going

cer¬

rela¬

our

on

help in developing
a

in¬

more

businessmen

Z5T

(2877)

to say

that these
arguable.

even

quite a
developments :that

few' possible
could
throw

are

entire thesis into the ashcan.
Number one, of course, is war.
aftermath of a third world

my

'■j

■■

The

is something too horrible to
contemplate. I happen to believe

war

it

will

and

can

must

we

all

Number

threat

be

avoided,

but

Low

is

two

that

the-

the

real

very

combination

telephone earnings do not

mean

low rates

Good

admit its possibility.

telephone earnings do not

mean

high rates

of

union labor and bureaucratic gov¬
ernment will so dilute the profit

incentive that private capital will
not

find

extent

to

benefits,
and

expansion

necessary

worthwhile. Few of
which

realize the

us

fringe
wastes,

wages,

featherbedding

taxes

have

corporate

encroached

profit

in

recent

on

years.

Net after taxes of all corporations
combined last year was no larger

than in 1948, in contrast to a 68%

gain in the

national product.

gross

Profits of manufacturing corpora¬
tions in the third quarter of last

.i:
t

equal to only 4.7% of
sales, compared with a 1947-1950
year

were

of

average

right

6.7%, and the ratio
is considerably less.

now

Let's face
to

make

it,

is invested

money

profit.

a

is

That

the

capitalistic system, responsible for
the

growth of our nation in the
past. If we kill this motive, the
alternatives

depression

are

or

socialization. Perhaps I should say

depression and socialization, for
the
people
of
this
country,
increasingly dependent upon gov¬
would

ernment

tion

choose

to fulfillment of this dream for the

sixties is that everyone will have
dream

and

act

upon

markets

had

preparing for the vast
the

of

We

future.

ble

at the lowest cost

price.

We meant it then and

it

we

mean

in the long run

now.

Today,

more

than

ever,

it is evi¬

est cost in the

long

run

depends

on

good earnings.
To

a

considerable extent the

pub¬

steel, paper, and ap¬
pliance industries, among others,

lic, and

had moved ahead too far too fast.

should know better, have come to

aluminum,

That is

of the major

one

the

From

to

me

is

shakeout
that

the

in

growth
seems

standpoint

the

gives

the

catch

up

minds

the

sound

businessmen

It

chance
again

a

economy

Such

lessons-

of

that

plant

are

cidedly

inflationary

and

quickly

a

that

we

expanded
suggest to

shall again be fighting

rear-guard action against infla¬

tion

a

year

atmosphere

hence. In
it will be

such
easy




good earnings

mean

low

high

earning meat packer

makes the best and
Or that the lowest

rates.

cheapest hams.

earning

company

Yet few

people have the idea that

in

the

lowest

earning

soap

company

any

line makes the best and

cheapest products and renders the

makes the best and

cheapest

soap.

best service.

It doesn't

There

are

telephone
cost and

an

for

BELL

TELEPHONE

apply to the telephone

cither.

company

many ways

users

in which

benefit in both the

quality of service through

good earnings for the telephone
company.

for¬

implications

cut, easy money,
social security, etc., etc.,

and

rates

mean

of

The huge deficits,

the tax

me

Or the lowest

earnings

they

gotten, however, and some of the
things being done or talked about
to "cure" this recession have de¬
for the future.

who

many

to
re¬

should maintain a healthy fear of

over-expansion
inventory.

afraid

thing

happen.

to itself, and

are

think that low

it

present

healthiest

possibly

could

of

decade,

next
that

we

reasons

for the current business let-down.

/

depends on good earnings

dent that the best service at the low¬

have

small taste of just that. The

a

The best service

it

prematurely. In other words, thfere
is some danger that we will move
too fast in

the Bell System

possible service at the lowest possi¬

over

same

years ago

socializa¬

depression; and sociali¬
zation
would,
in my view, be
unable to provide the gains we are
looking for in the next decade.
Number three among the threats

the

Many

pledged itself to provide the best

SYSTEM

">*r.

The Commercial and Financial Chronicle

.

Thursday, June 26, 1958

.

.

(2676)

2«

vestment,

Chemical Company Planning (or
The Necessary

1;

By L. C.

Capital funds

PERKINSON*

item

mechanics and judgments
genera 11 y invol red in short and long range financial planning
and cash forecasting in the funding of current and new capital
projects by companies seeking funds or depending upon cash
on hand and expected internal cash flow.
Mr. Perkinson is
mindful of complex situations in chemical and related drug
industries which experience growth, research, new develop¬
ment and obsolescence rate than industry in general. Suggests
assumption*'of a two-year completion date of construction,
working capital needs of about 20% of total capital invest¬
ment, and tmiikelihood that a facility will operate at capacity
throughout its life.

limiting

discussion to the me¬
amount

my

chanics in determining the
of

that

funds

will be needed,

tim¬

the

and

ing of the

re¬

quirement.
*

is

There

no

peculiar mag¬
ic

or

mystery

involved and

believe

I

there

are

many

ap¬

proaches

to

made
me

lion by

expenditure

.

receivable spent during 1958; another 50%,
and inventories—raw materials to or $25 million, in the following
finished goods;
year; and the remaining-10%', or
Depending on the nature of the $5 million, in the year after that,
principally

accounts

group

a

ects* in

terms

be

only

to so judge, proj¬
of the degree of

desirability. If the situation were
where

one

"most

the

aggregate of
projects

desirable"

the
was

greater than the cash cm hand and
that

foreseen, and if the decision
against raising
outside
funds, then
the problem
boils
•down to determining which of the
still

is

worthy projects get priority.
A clock

pendulum must operate

working capital varies,
Other people may., estimate in a fixed range. -In business it is
generally within a range of 10 to these average spending percent-, different. While the
long-term
35%
of the capital investment, ages at 30 % for the year ot aptrend is; definitely up, the intern(Illustrate—new plant versus up- Proval and 70% for the next year.;
mediate -Y swings - are
sometimes
grading an intermediate.) This - - -or20% for the first year,. sidewise and at times down. Fi¬
beast, the

makes overall

arbitrary guessing

and 50% and 30% for tlie follow;

nancial-planning; shodld.embrace
on these swings and the
possible timing of the corrections.
In particular
we should
almost
never assume that a facility will
operate, at capacity throughout its

estimate lnS two. These figures are arbijudgment
is indi- trary, and will vary with the pre- .

inadequate so a specific
for each major project

ference of the forecaster, and the

cated.

sp!5iIic

of facts,

Naturally too, the return cash
set
of such cases, a studied
flow resulting from provisions for
Having estimated the rate of
approach to financing require¬
depreciation on the new facilities such construction expenditures,, life. .iYe should try to keep up to
ments is warranted to minimize
to be completed
must also be we now turn to the outlay for; date on the latest economic fore¬
the cost squeeze of a cash need in
taken into account.
working capital. In this arbitrary casts of business generally and the
case, we
have to assume some
a
tight market, or a significant
trends in the money markets.
cash surplus at a high interim in¬
Prospective Capital Projects
average completion of constructerest or dividend cost.
Much,; sometimes too much, has
The next step calls for a good tion and the amount and timing
been said; about the current sigdictionary . . . to make a proper of the related working ,capital,
Making a Cash Flow Forecast
rii f i c a ri t readjustments. Since
distinction
between forecasting, For this purpose, I suggest using
To begin with, a budget or fore¬
estimating, guessing and speculat- an average completion date of 24 ^psychological factors play some
cast of cash flow is needed to in¬
paft YinY business cycles, perhaps
ing. You might call it the science months from date of approval, and
dicate when the company's casheach off; us can. do our little bit
of probability. I'm referring now an estimated working capital in
box will need restocking. We all
to the determination of the aggrethe year of completion * at an currently-by talking and acting as
know
how
essential sales and
though we recognize the fact that
gate amount of new projects to average of 20% of total capital
operating income budgets are. We
; such swings - are inevitable and,
be approved over the next few investment. Of course,. some
also know how unreliable they
build-up of raw materials y and although; ? distasteful, are some¬
can be
remember,those for years '
supplies is normally hd^ded befii times corrective. I don't think we
In many companies, pperat
g ^
annual and quarterly periods in
-the. completion of construct- are approaching, a calamity which
division personnel
are annually ..
.
the recent past, and those for cur¬
the start-un of opera- would
justify "boondoggling" or
rent periods. Inaccurate as they required to compile lists of pro- 4jon
which would warrant prematurely
spective capital projects deemed
A * fpn number three
we have
may be occasionally, without them
any
significant n tax:; reductions.
worthy of consideration over the t
we travel in the dark.
appraise the cash return from Also, I don't think we can just
next five years
and to clas- ..
x \
1 YeDreHation provision . <ron italk our way out of a recession
...
In some cases it may be suf¬
iify
acco
new facilities. i?be3fessmgv so I'll pipe down.
ficient to forecast monthly cash sify them according t^o the year the
;
Y^ Y
Of nrobahlp consideration.
>f probable co]
here could be at an overall .rate;
balances for only the next two
It is normal to include in such of "8% a year, 7tarting with' the
years. Sometimes, a 10-year pro¬
jection seems warranted. Perhaps lists items which are in various y£ar when construction 'is - corn-

.

.

rt

.

.

up my mind, don't
with facts," and then

promptly and get $50 mil¬

go out

total

of

one

would

officer

financial

and ,%he sta^t up or. opera,

'L. C. Perkinson

attitude

confuse

of

.

.

.

.

problem.
One arbitrary
way to do it
is to adopt

"I've

.

rate

therefore seems appropriate,

guideposts, it is necessary
If the list of possible approvals
for each major for 1958 adds up to, let us say, $50
the amount and timing million . . , then I would assume
related working capital, that 40%, or $20 million, would .be

In many

.

the

the

.

the

of

the
completion

the

using

estimate

to

dates. Obvi- detailed amounts are variable and
guessing will subject to substitution. A guess at

to be wrong.

prove

dates as

Financial Vice-President outlines

My subject in brief, is "How
one plan for funds." I am

pected completion
ously, some of this
Then,

Cyanamld Company, New York City

does

guides

partial

as

.

Vice-President for Finance
American

etc.,

engineering and construction peo- spend the money for these still,
in classifying projects as to rela¬
pie
.
.
in order to determine unapproved projects? The total
tive importance. In a medium or*
the probable monthly rate of cash amount of the projects may replarge company, I believe that the
expenditures, and also the ex- resent a realistic guess, but the

one means or

another.

V By contrast, another way is to
Bit back and do nothing until the

.

.

.

.

_

;

George B. flshby With

forecast is a happy stages of stmdy and development; pieted.
...
and,
of course,
some
blue-sky >
Having outlined thesCme!■
items creep in.
Year by year,' chanics, I must now poinTbut that
"(Special to The Financial Chronicle) r; ; many of the items are deleted but it js fortunate, both for thb'fundother projects replace them. ; The seeking company and for the • cash
KANSAS CITY, Mo.—Geoge B.
annually after that. There is no
"best" approach. It depends on the lists themselves are a measure of forecaster, that there*1 are Ym any* Ashby has become associated with
particular circumstances, and the the life blood of a growing com- compensating factors which tend
1
'
•" to minimize the faults which crop
judgment of the forecaster—-or his pany.
superior.
Sometimes, such lists are the up in the kind of cash forecasting
Of course, the starting point in only reason for compiling a cash as described.
- ,. n
'
making a cash forecast is the com¬ forecast of capital fund requirebination of known facts as of a ments. Apart from growth projCompensating Factors;^ ; . t.«
certain date. To these facts are ects, they also include a large
Estimates for new projects to
added
the readily determinable number of prospective items per- be approved may be overstated,
forward commitments and obliga¬ taining to routine replacements, but
there are sometimes-.addi-.
tions
things like sinking improvements, modernization,bot- tional new capital projects fwhich
funds and other debt retirement tleneck removals, etc. Y /YY l; ■
result from sudden or faster-thanCertainly,
all
of >such
data expected developments.. Also,
obligations, and other fixed out¬
(growth and routine items) must there are usually other ^varied;
lays and receipts of significance.
be taken into account in making cash requirements whichifall.into;
Projecting Retained Earnings Y any sort of worthwhile cash fore- the category of a somewhat emera

five-year

medium, with projections of
take your chances on how much monthly .or quarterly cash bal¬
you can get, and at; what terms. ances for the first two years, and

need

becomes

immediate,

The difficulty, of course, is

then

that

you might guess wrong. If you do,
you

could end

with

up

in the first case

abnormal

cash surplus
high interim cost, or
otherwise
be
obliged to suffer
from a high financing cost plus
unusual restrictions, in forced bor¬
rowing in a tight market.
Now, there are situations where
it may be relatively easy to make
an adequate
decision quickly. If,
for instance,
an

carried at

•

a

(1) the current cash situation
reasonable, but perhaps on the
tight side for a growth company
with a long list of worthy projects
With the strong probability of ad¬
ditional authorizations of signifi¬

as

,

..

„

.

.

.

how to do it; gency or extraordinary .nature.; ..>
George B. Ashby
have an aggr^-*
Then too, if a particular project
gate list of many hundred items is deleted, the corresponding de^ Barret, Fitch, North & Co., Inc.,
cance over the next year or two,
really essential to try to guess with an aggregate dollar tag of ierred spending for investment. 1006 Baltimore Avenue,-members
(2) the money market is favor¬
prospective earnings year by year. several hundred million dollars, and working capital is partially , oL the Midwest Stock Exchange.
able either, (a) in terms of low
Ashby
was
formerly with
The basic requirement is the esti¬ The items on the list have been offset by the reduced return cash Mr.
or
medium rates for long-term
mated
retained
earnings, based submitted by five, 10 or maybe 15 flow from earnings and depretia- E. F. Hutton & Co. in their trad¬
borrowings, or (b) high stock
v V Y
Y;
upon an assumed rate of dividend operating division managers.
tion which that project would ing department/ prices,
Now, each of these men, al- have provided. On the other hand,
payout. To get the advantage of
(3) it seems desirable to have
possible range of available cash though thoroughly competent, has the uncertainties of a five-year,
the funds on hand before actually
Named Director - v, Y
over
a
period of years, I would his own degree of caution, optim- cash forecast may be highlighted;,
undertaking
additional
major
J. S. Baker, Jr., a Vice-President
suggest alternate forecasts,
one ism, pessimism, imagination, and by suggesting that today not too
commitments,
based on a static or minimum rate all the other emotional variables, many would
be willing to, give of The Chase Manhattan Bank,
(4) then it may be appropriate
of retained earnings and the other
Obviously, the lists must be odds on a close range estimate of New York, was elected a director
to reach an arbitrary conclusion
on a higher or maximum rate.
screened again, by some appropri- your sales and earnings for the of
thev Alpha
Portland Cement
"How
can I we
go- wrong
by
Then we must take into account ate central group of perhaps oper- current month.
„.;riv
Co.,|Easton, Pa., on June 20. ' promptly raising 40 million, or
the estimated return
cash flow ating, research, engineering and
There's another phase-,of plaii"Mr. Baker, who started his busi¬
some other amount."
related to provisions for deprecia¬ financial people. It is their job to ning involved in the funding of
ness career with H. C. Wainwright
If, on the, other hand, the cash tion on existing facilities. This prejudge the likelihood of ap- new capital projects.- That is the
& Co. in 1939, was with the Penn¬
position is quite satisfactory, the shouldn't be a difficult accounting provals, based upon available conservation or use of the cash
sylvania Company for "Trusts and
money market is in a low or de¬ determination.
technical and
preliminary mar- you have on hand, and that which Wills from 1940 to 1942. Joining
clining rate range, and the com¬
keting and economic factors, etc. you expect
to raise internally the Bank of the Manhattan Com¬
Capital Projects
pany's projected growth is mod¬
The ultimate aim here is to end from earnings and depreciation,
pany in
1945, he was named a
erate, then the decision may well
Next we have to deal with the up with a realistic aggregate dol.
.
,
YY .
' Vice-President in 1952.
He re¬
The

next

step,

possibly,

is

to

project the internal cash flow
from
earnings. Now,, it is not

cast. The problem is
Let's suppose we

,

-

#

_.

be, "Let's wait and borrow on
short-term, as the need arises."
^

There are more complex situa¬

tions, not
ical

and

uncommon

related

in the chem¬

drug

industries,
Which have been growing faster
than
industry in
general, and
where

ments

research,
new
develop¬
obsolescence are
at

and

relatively high rates.
*An

address

by Mr. Perkinson before

the Subdivision of Chemical Management
Division
of
Industrial
and
Engineering

Chemistry at the Spring Meeting of the
American Chemical Society's Convention,
San Francisco, Calif.




list

of

Let's

capital projects.
there are 10 major

approved

assume

items, each involving several mil¬

lar amount and the

provals rather
specific items.

_

Limiting Investments toi Internal
to pinpoint'
Cash r low ;
1
I'll put it another way. If-a "de¬

timing of ap-.

than

cision were made to raise no mew
smaller
physically Determining the Expenditure Rate funds and to limit investments in
Having appraised the significant new projects to the amount of inunderway;
others haven't been
started. All of them will be com¬ items individually, and the other ternal cash flow
.
.
.
then the
pleted perhaps at various times smaller items as a group, and hav- financial officer has a problem of

lion,

and

100

or

more

items. Most of them are

tained this
the

and

the

Company in

1955 when he

assigned to the

United States

hattan
was

position at the time of
of Chase National
Bank of the Man¬

merger

Bank

Bank's national
organization. Mr. Baker

department,
territorial

the

allocation. In such a case, the job
became associated with the metro¬
would involve allocation of funds
which can be lumped together and likely to be approved and acted to the most desirable or urgent politan department, in which he
dealt with arbitrarily, it
seems upon, there still are several de- projects.
In the normal -course is mow a supervisory officer, in
management would have tb prenecessary to examine each project terminations ahead.
1957 as Assistant to the Executive
The first is the rate of expen- scribe criteria in terms of number
individually with appropriate per¬
sonnel
perhaps operating, diture. How fast are you going to of years of payout, return on in¬

during the next two years.
Except
for
the
minor
items

...

ing arrived at totals for each of
the next several years for projects

Volume

187

Number

5754

.

.

The Commercial and

.

Financial Chronicle

(2879)

able

Losses oi Life and of

Securities Salesman's Corner

Property from Fires

Labor Unions
Most

By ROGER W. BABSON

Forget Radiation!

One of the added compensations
that
comes * from

.

selling

.grade, sound investments

to

do

a

obtain

can

.clients.
what

1

I

would

believe

like

to

to

individuals.

customer,

vestment broker
work

}

Emphasis

degree

security

greater

bonds

■

visited

les¬

with

meetings-

his

social.
to

few changes.

tion

person or

that-

them

speculative activity, is

pect

because

"sure
"ten

and

he

a

does

things," "free rides"
one," payoffs. Cer-

tainly, if
ties

you are dealing in reali¬
is completely
unrealistic

it

believe

to

achieve

that

you

can

ever

I

bonds

called

and

and

told

if

wrote

he

did.

me

a

I

I

^
him

wrote
-

tested

buy

months

called

I

ar¬

20

later

and

he

nice "thank you"

very

then waited

had

10

that

could

should

were

letter.
..

him

he

Ten

bonds

than

more

I

that

he

these

steady
friend who

few weeks and

a

that

since

we

business

our

r:■

■>-'

now

results

satisfactory and lasting
relationship;, with
this
type;.of

pretty well that I wondered if he

speculative account.

should

try

a

and

do

So point one

business

the

the

desirable

time

cisions that
istic

about

his

give

a

de¬

to

investment

his

will not tell you
investments
and
also

idea at least of his

you some

position, his obligations,. and
objectives, you are going to

his

able

investments.

clientele of

him

When

vestment salesman

has

from

suit¬

an

in¬

developed

50

to

several;

plenty

on

his mind in properly

servicing these customers without

friends that

some

invest

their

of

some

;|ri; tax-free

bonds.
* He
would like to

fully the
building mate-

fireproof

During the past winter, I have
been shocked at the losses of life

the

a

il

stock-

a-bove

lives.

holder.

Roger W. Babsoo

T h

'

curred

through fire
insurance.

covered by
ance

for

can

loss

loss of

are

usually

this also

ThI

that the

use

the

cate

a

fire the

losses

in

the

United

States

value

fire

of

losses

able
tain

in sprinklers is

or

insurance rates.
of

one

family accepts

your

by sprinklers.

important factor in this increase,

the

been

Nevertheless, the sad fact is that

landowner

the

on

same

Doctor,

who

board

had

of

directors

with him for years; two

business

if he

see

very

or

sarily high.
trend

me

done

unneces-

And these losses will

higher unless something is

Small factories

buildings which

soon.

their

owners

will

of

factories,
well

as

as

radiation

had

in

the

business, because

to

not

be

by

worn

are

bestos

desk

portfolios

in. which

to keep important letters and pa-"
pers.
You can also buy .flameresistant draperies, rugs, and tex¬
I forecast that the day will

tiles.

when

come

we

will

sleep

bestos

pillows
and
flammable pa j amas!

like

to

take

with desirable and suitable
suggestions,
unless
he
tries 1o
make it a guessing game.
Find
your customers among intelligent,
up

and

Chairman

of

the

Board

.

:

practical, hard-headed

do business with you

to

want

who

men

be-

'

cause you

them the time,

can, save

and the effort

study,
'

an

New York aboard S. S. "Constitu¬

tion"

for

the

Mediterranean

you

ment

job

ment

client,

ferrals.

job

you

.must •;

,

for

daughter. Mrs. Bay is the widow

are

of the

former

United

States

With Earl A. Holtham

vol-

these

remove

fire risks, then

stricter

fire

laws

we

to

unneces-

MODESTA, Calif.—Angleo Me-

must have

make

anza

avail¬

A.

is

now

associated

Holtham,

1024

J

with Earl

Street. \

these,

as

an

invest¬

invest¬

you

ask for

may

have done

a

re¬

good

will get them. But
remind your

usually

you
cus¬

of running; tomer—people don't go out of
their 'way to recommend invest¬
and - 'be-:
ment I men, no matter how well
them "pick?

cause

you

can

help

*

good

and suitable securities."

This, in brief, is what I call anj
that is desir¬

investment account

able.

qualified, unless they are buyers,
conservative/quality type, se¬

mate

of

curities.'

f

People who need security of

capital and income (and growth)
or
(both), and people who will
give you their confidence. If you
the merchandise, and
the

have

.

(Special to The Financial Chronicle)

.CLEVELAND,

Ohio —Gary

experience to know what to sug-

Galdun

gest, and when to suggest it, and

have

try to beat the
market every day in the week,
you have a desirable customer..
;

A.

Wm. J. Mericka &

and

•

.

'

been

Richard

Commerce
the

added

to

W.

the

Killius
staff

of

Co., Inc., Union
Building, members of

Midwest

Stock

'

'

do business with this

type of' investor he appreciates
service, your keeping him advised
of attractive offerings of new is¬
sending

sues,

ing
.

his

him

holdings,

friendship is

data

and

concern¬

a

the result.

general
He

that

you

are

helping him




Hutchins, Parkinson Admit
BOSTON, Mass.

—

Hutchins &

Parkinson, 27 State Street,

mem¬

bers of the New York and Boston

Stock

Exchanges, will admit John

isn't, Grant to partnership in July 1.

looking for the impossible but he
knows

'round,

framework in which
workers

are

more

than 540,000 energetic

rapidly building

a prosperous

home¬

land, in modern Puerto Rico. They have also
created

a

broad, fertile field for safe investment.

The tremendous progress Puerto Rico has made

Radiation
When you

Puerto Rico

beauty, sets the

Exchange.

"

'

helps busin

Ideal "June" weather the whole
year
in a land of inspiring scenic

*

; you don't have to

in

grow

Two With Wm. J, Mericka

Stephen T. Whitney will with¬
draw from the firm

on

June 30.

sincel950—in

employment, industrial production,

public health, housing, overseas trade, living stand¬
ards, public utility services and efficient farminghas

Am¬

bassador to Norway.

not

qualified

a

If you

cases

doing

are

and

southern Europe. While in Europe,
she will visit Norway with .-her

investment: account,

1

*;

where

of

daugh¬

ter, Synnova, sailed June 21 from

the

minds.7But in such

as¬

man, Executive Committee, Amer^
lean Export Lines and President

difficulty
do

on

wear-non¬

responsibility of
salesman or a
with any individual who will not' recommending a
give him sufficient confidence to security—the possibilities of losses
foremost
in
their
make it possible for him to come- are;*;; always
having to play "cops and robbers"<

those

suddenly called upon to
put out small fires,; asbestos bed
strips designed to help prevent
fires due to careless smoking; as¬

;a

consti-

act

gloves

who

investment,

people

ex¬

sprinklers.

of the six people I met I am now
doing business with five of them,
and don't forget the bank.

with

stores,

more

fire-alarms

(Special to The Financial Chronicle)

untarily to
sary

call. Out

on every

>

also

systems and
I have in mind asbes¬

corresponding loss of life and jobs,

excessively and

homes,

tensive

she is protected

If

are

ac¬

by appointment

job,

losses of life and of property from

This

day. was spent making
quaintances—he accompanied

infla¬

fire

men;
and the President of his
bank (where he is also a
director).

could

A. M. Kidder Co. with her

tute the greatest fire hazards, with

retired

his

met

will

*

unions

construction
and

When you

tion of building costs has been an

We

course,

con¬

.1

profit¬

a

office.

Of

in

which

measures

Mrs. Charles Ulrick Bay, Chair¬

financially because, to a cer¬
etxent, their cost is offset by

lower

has

also

his

jumped *43.9%.

interested

more

Mediterranean Cruise

than 50 people. They are not

ment

high of $1,023,-

190,000, up 3.4% from 1956. Dur¬
ing the past ten years, the annual
dollar

powers

are

Mrs. Bay Sails on

costly to maintain once they are
installed. The installation invest¬

dollar volume of

new

a

is

only answer is strkter fire
strictei tire

more

climbed to

labor unions

urge
that more asbestos be used in the

Sprinklers afford the only real
protection in factories employing

some

Last year the

that

These

headway and

location.

fire

destructive

sprinklers.

become unmanageable.

often

insurance money to relo¬
other more suitable

in

its

truly benefit their members.
Surely one of these is that every
factory in which union labor is
employed should be protected by

lers which would put out fires be¬
fore they could
gain

city will

owners

bUi

«?!'

answe^

ordv

,

lose taxable property, because to¬

day after

All of these lives could have

w

fully compensate
life, loss of a job, or

means

factory

f»rw«r

never

of

occurred

-n

The New York blaze,
mentioned' snuffed out 24

But insur-

successful business. Often

a

fireg

been saved if the factory had had
a "sPrinl5ler system." Of course,

fir,Qn

rial losses
•

Qf

buildings.

nrniiri

am

serieg

which

me;, that he
introduce me to a few people and
several days later I visited him at

substantial-accounts, he ;£<;r have '"always

hundred
has

also

man

find it difficult to show

a

must

based upon a real¬

are

approach
If

tax

client

to

think, and
understanding to make

needs.

also

wrote

Your

(2)

not have

IN¬ capital

with

VESTORS.

have

might

in¬

in

of

s m a

who

AND
my

wise

it

it

range

ex-,

for

people

REGULAR

thought

better

not

with

usually bought not

to

stock market, or in any other type
clients

bought them at

stantial discount and naturally we

waste
his
capital
by
following
highly hazardous ventures in the
of

I

sub¬

were

afford

and

would

we

more

rials and home and office furnish¬
ings now on the market.

com-

in

if

cut
use

TTni'tPH QtatpT and property which have
united
Mates,

to

reason

a

placed

speculator.

cannot

small

be

to

losses

fairly

safeguards will
but they will not

tos

F.

best fire

p a n y

also

how

various

the

surance

made

mium. We

clients.

who

.-°.r^\w

to my atten¬

had

could
learn

consider

stocks

a

In-

Com-

Fire

features.

now

through panic and smoke.

structive

fire-extinguishing

of -New

a

become

through, equipment available.

are

being
severely criticised, they should

so

smothered at their start if
people
would not get panicky and if
they
had proper

now

these

Home

pany

pre¬

the

man

tne

finally

of
we

One day
came

firm

our

I

list

time

a

vidual is not to be confused with
The

the

have

doors

fire,

life

Now

Except for those caused by exf~ Plosions> nearly all fires could be
facts,

secured

our

believe would be called at

also; wished

or

get
I

Several times I

entire

time

from

and

ital" by acquiring sound
"growth
type" investments, but this indi¬
trader

to

best

very

him, but mostly

were

•

reviewed

•

to increase his estate and his
cap¬

market

wished

completed by

was

.'phone and mail.

you can do busi¬

who

T
I

cause
cause

equipped with

These

confine

Sprinklers

buildings,

small, residential

are

fire-resistant

Fire-proof

leadership.
Importance of

on

newer

common.

fije in Nlew

surance

block of bonds

businessman

factory

tacts

a

•a

-I have not before
commented

all the business

increasing either
income, or who have
income, are the

professional

the

at.

,

quire. Sometimes
a

structive labor union

my time
best to show him

tried my

most valuable clients you can ac¬
with

sees

com¬

various

Suggests certain safety and preventive
in this area a
great opportunity for con¬

prices. Several years of this ana
weAbecame well acquainted and

•>

of

or

I

sound

need for unearned

ness

estate,

stocks, and too few tax-free
We started out
slowly and

and

on

their earned

much real

He

every month he would buy five or
10 bonds.-i'We waited for attrac¬
who-: tive offerings, I bided

Investors who

a

retired.

was

and

in¬

thelonger

on

man

bonds.

•

dependent to

sor

good

a

over

V'

capital and income.
are

mon

,

it pertains
takes a good
as

This

owned too

as

,vestment-wise

(1)

-

salesman,
a;- team,
to
satisfactory results in-

achieve

;i

qualify

desirable

a

or

together1

term.

fice..

as

It

well

as

to

be

.investment account

satisfied

eliminate
to

measures

our

commercial,

unnecessarily high.

to

from

or

calling attention to 43.9% rise in annual dollar value of
fire losses in the
past decade and the loss of life
involved,
Mr. Babson points out what
insurance can never
fully cover
and ^observes that life and
property losses are excessively and

good, L?ng-term job with

people - •V; About five years
ago I opened
who are true
investors, rather tnan (* such an account in a
neighboring
to speculators, is the referrals that
city about 200 miles from my of¬
you

of

whether large or

Jn

his investments.

high-

reader the protec¬

every

tion that only sprinklers can
give.
Great Opportunities for

By JOHN BUTTON

Don't

to

27

caught the attention of the entire

free world.

Over 4,000
Puerto

trained

Rico in the

observers

have

come

the Commonwealth's remarkable economic ad¬
at first hand.
They came from far-off
Burma, Egypt, Indonesia, Iraq, Japan, New
Zealand, Pakistan, Spain and South Africa—
vances

and from nineteen Latin American

Among the
the

many

States

are

republics!

opportunities for. capital from

the

well-secure^, tax-exempt

bonds of Puerto Rico and of its various

revenue

Authorities.

GOVERNMENT DEVELOPMENT BANK FOR PUERTO
RICO
FISCAL AGENT FOR THE COMMONWEALTH OF PUERTO RICO

P.O. Box 4591, San
Juan, Puerto Rico

to

past few years to study

37 Wall Street, New York
5, N. Y*

The Commercial and Financial Chronicle
28

CONN Oil*

By JOHN T.

President, Merck & Co., Inc.
Railway,

Quality may be something else

New Jersey

again. Including two years of internship and residency, an Arnerican
doctor has had 22 years of

Leading pharmaceutical-chemical manufacturer recounts Soviet
in medicine and drugs, suggests we no longer neglect

record

Thursday, June 26, 1958

the

of the

winner

race

Russians have yet to

important drug on their own; notes, despite defects,
Russian refugees praise Soviet medical program; and

develop
even

an

speculates whether USSR will export its most successful
vation, i. e., medicine, to underdeveloped countries of the
.

u

' '

„

nlaV«Si PU?ks the $2
thJ'
uell

it

inno¬
world

have seen a

aSe Pay

1L

tween health, life exp

£ °h!itmwp

1r

fully
conscious of
origins.

our

of
products

Many

!w
lev

chemical

lab¬

oratories

here

and

and

we

m

are

an

11
a]1

„
the

thp

„vprfltfp

/

Party

of

an

0f

enor-

quite

hundred

himself may be ready to do a

simple,

Russians so
quaintly call "incorrect thinking"

set

interference,

production out ol tne

was

commuted to

a pro-

of industrialization, the capital for which could be accumu-

deliver

medical

a

a

major

nour

new

profession

Production, fast distribution and

>rt
drug to the

for

rapidly declining prices.

general

with Commu- use. And, before the Russians

_

ncJ

would have to make, as we have,:
a

national investment of time and

billions of dollars to build up the

skills, experienceHxr and
nivooriv
facilities already possessed by our
industry, universities, research institutcs and government. - "
needed

put it oll his return from the SoPi rati n? dnms
however is not
*. TT .
1qc+Pirating cirutes, nowevei, is not

v

_

.

Refugees EveiiPraise Russian
Medical Treatment

work could duplicate our success, they

by the Ministry of
Health and mountains of red tape
norms

,

about

was

nist

frustratjons

employee

•mous bureaucracy»

grain

Connor

John

is

reason

few

a

—

man

Kremlin

abroad,

both

nf

bn th

at

years ol

u..

in

born

were

The

reading

After

of these complaints, dear Krokodil

Soviet Moscow found that it was far less little of what the

Lf rfintivplv —"medical ethics and ideals tryn,7t n» fho ing to live under uncompromising
_iifi n1
„nnfrni »
nr.
rmhnnr
in return for its inPolitical control," as Dr. Gunnar
inhi Jfori
ninth
Gunderson, President-elect of the
1; sneiter anaeaucation. The Ainerican Medical Association,
«hnlfnr^ and idfiration ine
mg

our

and

rocesses

o

SS

expccta

Russian

by

to date
-

a

being

d

y

a

fni'tld

?J
hie

also

American standards,

Even

The Soviet score

is: Zero.

is substantially less than than to discover and develop their

^
there

oeginning to

'

behind the

PneiT,v

"chemical in¬

are

laSs

and speculate about the efficiency
coal miner. The status, i,-_ It usually takes umany mil- of competitive capitalism, Tiniwi
own.
Hoc
nswciHiA in tKo which
of the State..
as web as tbe Pay> is. well below lion dollars of research, develop- has made possible in the United
Hprdnnin?
thov that ot the bigh Priority profes- ment and testing before an AmerStates a high rate of discovery of
very pegn
i
g,^
y gjons>
as engineering. Then ican pharmaceutical company can new medical products, abundant
cured connection uu-friictratinnc
ni'
rloliuoi'
mnini<
+V.
nrnrhirtirm
fast riistrihiitirm arid
aireci connection OL-

_

are

he

standards, not too good. The aver- costly to pirate Western drugs

the

^

dustries

By

dismal.

If1 1^' rZffit Z BoisneviKs naye looiceq upon cu» that of
and
related
line
and BofshevS?hav<flooked upon' dis„n

before

him

drugs.

Russia?

Revolution

eeutical

medicinal

one

countries."

fairly

that

is

point

Th«

behind

What is it like to be a doctor in

PinitMism had routed

q

before •
bef

Ion?
long

hiiiinn
bdlion

w

acioss

ume

\t.hinh

-jizc,

„

important

pharmacology made the following the three-year delay. Two years
uncharacteristic confession: "In ago we wrote about the four-year
the search for new therapeutic bureaucratic tangle on the same
agents (the Soviet Union) still X-ray equipment, and a year ago

struments at his disposal.

Mr. Connor proposes that
would be the first country to raise

life expectancy to 75. Observes

average

single

a

practice on his own. His
Russian counterpart has had only

of the vital things we

"longevity race" and programs some

unearth

that the Russians have developed

starts to

would need to do in order to win.

7

Now, in view of all this criti-

•

cism, what do the Russians themselves think of the medical treatment
t.hev
receive?
Even
the
ment they receive? , Even the
refugees from Soviet tyranny are
sold on it, as Dr. Mark Field of

the Russian Research Center at
H

author

H

of

the

reeent

v1®' Y'1'"11 last wlntcr-

an easy game, as the Soviets are
entitled "Doctor and Patient
But there are compensations, now learning. It is one thing to £>'7 a "
m

willing

are

to invite

and proud

to their

tion

talk

to

parentage

about

own

our

alternatives:

contribu-

those to the actual length of life of its people
people, enormously or else accept the fact
competitive co- thai capital could not be acexistence, it is wise to look over cumulated fast enough to build a
our shoulder at what the Russians powerful
modern state in less
particularly

tions,

health

the

of

American

But in this era of

■

before we drink any
achievements. 1 have

doing

are

toasts to
done

our

and

this

has sobered me.

it

ru try to explain

why.

Before I take the plunge, let me

well

that I am

say

100 years. The Russians
chose to try to improve the health
of the nation and lengthen life
expectancy to Western levels. The Soviets proceeded to do

than

without draining too much

of the this

aware

and resources away
from other major objectives. They
depend, for the most part, on launched a nation-wide campaign
Soviet sources, which we should of sanitation and public health
accept only with caution.
This education. They built hospitals as

dangers that beset all analyses of
the Soviet system. I have had to

sunnlomented bv written

has been

By 1956 the Rus- cated remedy. But some of our states, xnc mai rea.
they had provided most important new drugs are ex- ® "y ia lfaJ aaacal . .
.
the doctors with 1,360,000 hospital tremely difficult for even our own Yhf Kremlin not onlv t^raise the
beds, or about seven for every highly developed pharmaceutical ™ K"™1™
Union
1,000 persons. This still does not industry to manufacture and have but also to mako nronManda for
come up to the U. S. ratio of near- turned out to be too complex lor but a£°^°
-,rH This nfopaly ten beds tor every 1,000 per- the present skills and facilities of |5®C<haslcft itsmark From the
sons, but at their current rate of the Russians The five-year plan, ^int 0£vieV of nopular approval
expansion the Soviets should be - referred to above, contains a long K™ nueJHns^en^lv« The
able to close the gap in less than list ot drugs that are in common
tne Kussians themselves, tne

the Soviet Union with only two tion program
either increase the sians claim

willing and proud, too,

We are

*

.

large capitalist we received the apparatus. But
now, dear Krokodil, we are cornThe record shows that every plaining of the yearly delay in
16.
Well qualified specialists are single major drug group devel- having
an X-ray specialist asstill scarce in the Soviet Union, oped since the Russian Revolu- signed to us. We sent our man to
And the average Russian physician tion was discovered by the West: learn
this difficult occupation,
backed
is
by poorer
facilities the anti-diabetics, vitamins, sulfa They trained him and assigned
equipment and research. He has drugs, antibiotics, hormones, anti- him elsewhere.
What are the
far fewer modern drugs and in- hypertensives and mental health prospects for this year?"
education

challenges Soviet Union to a

utilize medicine in foreign aid,

to

.

.

istiy and to the Ministry of Nonferrous Metals on the one-year's
164 per 100,000 people, compared
on their own. They admit this. In delay in obtaining the equipment,
with 180 per 100,000 in the United the summer of 1956 the official Four years ago we described the
States.
text of the five-year plan for two-year delay; three years ago,

startling. By 1956 the proportion
vvas already 25% better than ours:

Disease

The Global War Against

<

,

(2880)

manpower

fast

as

thev could snare materials

five years.
Let us now glance at Soviet
medicine from the point of view
ot the patient. He doesn t see a
family doctor; there is no such
thing. He goes to the local polyclinic, where he gets free care
from the physician on duty. The
care

use in this country but had not
yet been macie available to Soviet

physicians
One example will suffice. This
is cortisone which, I am pleased
to point out, was first synthesized
in a practical way a full decade
ago by a young Merck chemist,

will not be up to American Dr.

medical

to mass

schools

up

produce

One

failure always to condemn every-

to

dustry

to

try

copy

Western early begin with

childhood. John

'

Gunther found that Public School
n0w let us take a closer look 151 near Moscow had a full-time
comp
of tho mai or n<?npr>t<? of doctor and
nurse 111 attendance.
to criticism.
I assume that we SovS medicine. First the doctor. Dr- T. F. Fox, who headed a Britbelieve that frank discussion is as The most noteworthy aspect of ^ medical mission to Russia in
important in medicine as it is in the Russian «doctor k her sex
1954v reported that the populace
every other aspect of life. On that Three out of four nhvsicians are may suddenly be confronted by a
assumption, I shall try to give you women
This
is not surprising
sma11 team o£ specialists who have
the facts as straight as I can.
SESS?45%^
the invaded a factory or office to exTo understand Soviet medicine, Soviet Union are female. Women am'"° everybody in
it. In the
we
first
must
understand
the can be found in every occupation eight years preceding his mission,
theory around which it is organ- —from digging ditches to man- he says» the Russians claim to

thing Soviet is tantamount to approval
and
failure
to
praise
everything American is equivalent

drugs.

the.Rllssians have intr0.
(luced jn (he 4Q years sjnce theU.
Revoju^on
^

'

m,

..

n

T

Let me now ask «, question I
am

Lewis Sarett, following the sure ol the answer.

doctor as often when he is well late, Merck's competitors here at
as when he is sick. The Soviets home were so highly developed:
danger, however, does not general practitioners, public health give outstanding attention to pre- that it took them only a very
concern me.
That is the potential doctors and
pediatricians. They ventive medicine. Periodic phys- short time alter being licensed to
criticism of those who hold that ordered their pharmaceutical in- icad examinations to catch disease get into the cortisone competition,
They set

days cut to the bone.

the Facts

Facing

£™et health piogiam may^weu

not yet

aTc
Is the Soviet

Russians ure getting ready for
export, otherwise they would have

betoun by-now to slow down their

production of doctors nurses, and
other health personnel, who now
And some of them even took the number about 2,75u,uiXf peisons
lead with their own improve- or better than one out ol every
ments. ^
Befoi^we rate ourselves against
.
peioie we laie ourseiveo agamsi

Complain About High Prices, Too this kina of competition, let us
Since 1935, Soviet patients have just see how well the Soviet
had to pay for their prescriptions, medical system stacks up in terms
and you will be interested to of results. There is no yardstick
learn, they are as articulate on that will measure all the aspects
alfempUeefin
^e .subject of high prices as the of a naheaj^
that
average Amencarb
,
.
YvY
rfadiirun ferstood is the
.The Sovietd.ugindustiyisthe {'veand'readily uno.erstood is the
target of many othei complaints, longevity late, or tbe average
ted ^^ick man! in the Sovfet ni^g resS ^oratories
have examined 60 million for recurrent shmtages maldistribu- length of .Ufe Fortunately the
view, is
parasite. He cannot
After
of intensive ele- c?"Per asul« teams generally con- tion, and ac es of red tape that Soviet Union has lecently pub
shoulder
tractor3tend
ten/ear^ iutciisive ele- sjsting of a surgeon, gynaecologist, stick to everything like old-fash- lished some information on basis
Ion
machine, or' lauuch a satellite. Sudlng^our^
of cheSsHy' « and internist. the two Healthfly paper. Theabout "sabo- gevity, so we now results aof her
ioned talks publicly Minister of for comparing the have basi:
Now ° let "us Took
at
v__v.'
a* U Communis
toCsur- 5,1® physi?S^and six of biology', factors that have probably con- tage" and Pravdci, in typical So- health program with our own.
rive, Russia had to ^ strong" fo goes Stlf Into medical schoS tributed most t0 the improvement Viet gobbledegook, about "flagrant
Before I quote the figures, howbe strong it had to improve f lip
y
mecucai, s?,1}OOA - of " America's health in the past examples of the incorrect attitude ever, let me give you to two
hLlth of the peoole Th?s
the
^PayS ?°
decade: medical research and the toward the dissemination of the guideposts on Russian statistics,
theory
There has been
deviaa
^ stipend development and production of of the achievements of science."
On the one hand, they are no¬
tion from it since the beginning "
f.i J
arI?. 5 b®nus
new drugs. How have these two
The stickiness of Russian bu- where near as valid as our own.
«nfTt
f,i
5!'. On .graduation, she fai4ed in the Soviet Union? So reaucracy has never been better They are based on incomplete
(hi
thf
^hicaHy- takes no Hippocratic Oath. Her far> not too well.
described than by the popular information and 110 raw data are
tmif
Sw vm^oiTl
1°^+^
+ng ^
R is difficult to take the meas- Soviet writer, Vladimir Dudintsev. available with which to cross?
ure of Russiau medical research. I recommend that you read his check the conclusions. On the
cL,;0i,! le
^ebt of her life, she is its employee The consensus of those who have remarkable novel, "Not by Bread other hand, the experts warn us
lmfcf' iS'0"!" d
subject to
dicta.
been to look seems to be that it Alone," which was recently pub- that Russian statistics are not
SSiaiiQmn!According to official Russian has suffered from a relatively lished in the United States. In pure fabrication. The Soviets have
aeieats tne statistics, this mill has been grind- low priority since the Revolution, the meantime, listen for a moment probably done their best. We
a

ten

a gun

an-

vears

run a

...

a

yeais

TIto

nriffinnl

Bnlchcvilrc

H^nirlorl

j:.-..„

i

____i

we

was

no

+

,

t pnin

in

million

rn

r»

n

h

u

3

-i*

mnv

op h

Rn^iinc
f

,

c+

iQiq

tho

yntic:p "
'

point

♦ An

the story is not
defeated the louse,

of

'.hat Socialism

Annual

•

fh

either

The

1

aa

r

u

t

,

ll}g out physicians at an impres- is now well behind the West but to this letter in the Soviet humor would do well to accept what is
siv® rate: 16,000 a year, or more is beginning to pick up real mo- magazine Krokodil:
handed out as at least representwice as many as_the United mentum.
"Six years ago our mine was to tative of the truth.

States. Before the Revolution,

Meeunr of rthe°^n^eactruriig there Tre only about \7 doctors

Ch'Tnists'

Association,

White

Sulphur

Spring-s, West Virginia, June 12, 1958.




AOr each 100,000 people in Russia;
The rate of progress has been

Have Yet to DeveI°P a Drug

As for drugs, I have searched

rather diligently and have yet to

be equipped with X-ray equipWith this caution, I shall now
ment. Five years ago we com- turn the microphone over to the
plained to the Khabarovsk Health Soviet Minister of Health, Madame
Department, to the Health Min- Kovrigina, and let her report to

Volume

187

Number

5754

.

.

.

The Commercial and Financial Chronicle

(2881)
in

you

her

words.

own

This

is

what she told the Congress of the

Supreme Soviet
40th

last

fall

the

on

Anniversary of the Revolu¬

tion:

lenge this country has ever faced which of us can first attain
for
in time of peace." That
challenge, our citizens an average life exin blunt
words, is to make the pectancy of three-quarters of a
United States into a second-class
century.
power.

"As

of

result

a

the

steady rise

in the economic power of the So¬
viet State and
of
the
ceaseless

The dimensions of the threat to
freedom
are
now
clear.

stretch
of

ment

Union

Party and Govern¬
development of
public health,
there have been
great improvements in the state
of the people's health.
As re¬
gards a number of statistical rates,
the

...

the

Soviet

place

Union

place

the

by

leading

tries.

.

.

level

of

coun¬

life

ex¬

country has risen
in 1896-97 to 44

from

32

in 1926-27

years

and

to

67

years

%

1955-56/'

Life

first

with

capitalistic

our

years

in

taken

comparison

The

.

pectancy in

has

Expectancy

Improvement

markable

record

mortality

re¬

by cutting their
75%
since
the

rate

Revolution. They have made most
of

their

By

years.

in fairly recent
their
longevity

progress

1927,

rate

was still more than a
quarter
century behind ours. By 1956
they had pulled themselves up to
within reaching distance: a life

of

a

right

human

If

of

these

Soviet

we

more

it

can,

the

is

fundamental

the

I

one

have

we

75.

The

fast.

It

have

Some
are

of

ing this need at home. Should it
continue its present rate of progfcr

another

five

project

their

too

far

we

of

more

turn

to

assist

out

doctors—enough

medical

in

a

great

research

raising

the

and

health

have educated Americans

we

teeth at

and

years

then start exporting trained medi- and trouble
notwithstanding,
ical teams to sell Communism as man's most
primitive urge is to
the

only way to fight disease, it live, no matter how young or how
surely be treading on our old he is. The progress of West-

will

tails

as

search

we

for

friends

among the under-developed peopie of the world. Let us remem—.

i

_i»

_

it,

1

_

■»

r

cie

War,

onom«

far, has

so

Let.me

run

translate

a

third

poor

this

into

the

three weeks
been

a

Dr. Dooley had

ago.

Navy

young

physician

in

is

of

measured

a

i

we

i

„

the
life

i

-Longevity is not just
We

by
the

place on
single human being.
•

^

ber

that, in the long stretch of
history, disease has ranked with
VtunOor
hunger as monV worst enemy
man's

culture

ern

high value

,

predicted

rise

by 1975.
It

in

This is

our

vides

increase

no

population

bare minimum.

a

merely maintains

our

present
ratio. It prothe number

physician-population
in

for service abroad.

And it counts

foreign medical schools

on

to

keep

the U. S. supplied with one out of
every nine new doctors licensed
i

i

here

statistic.

a

*9

assume more personal responfor staying in first-class

sibility

physical conditions,
These, then, are

aJ"stlce'
?*} •'.? Pracess, through
world-wide sharing of the
secre^s of medicine that our re«

several

new

MV.w

they had

search unfolds, we will help
r»nilHron

heart

who

women

.

in

cancer

of

the

nnn

75,000
struck

were

their

.1

30s, 40s
whose

158,000

blood vessels failed them

or

before

.

chance, of the

a

and

.1

they

had even tasted the
of retirement.
If we

_a

»«

,

.

global

eign

medical

companion to

bold

a

aid

made

the

Russians

their

of

most

longevity

simply

have

in
borrowing

progress

by

Western methods of sanitation and
the control of

As

the

in

drugs
birth

to

tical
for

contagious diseases.
explained to me, up
discovery of the sulfa
the middle '30s
gave

doctor

one

until

the

modern

pharmaceu¬

industry, most of the credit
raising

life

expectancy
should go to the much lampooned
our

American

for

craze

modern

plumbing.
So much for the past. Now what

about

the
that

swer

within

future?

Before

question, let
context

the

Union's

of

I

We

size

the

theirs—would

of

enough surplus to take on
any new challenge from the Rus¬
sians, be it the production of
us

tists

or

But

can

the education of scien¬
the lengthening of life.
be

we

Economic

For too
one,

so

sure?

on

many

years

the

now

weaknesses

I, for
the

of

the evidence of its enormous
its

growing strength.

had

hood

of

now, ever since the
first
Five-Year Plan was launched in

years

into

man

We

reality plain

a

people could understand.
"It

made

proud

me

American doctor.
baffled.

me

be

an

it also

left

Z

nroaram

H.

aid program as

our

Evans

Vvitn

has

r»ail,

conquer

capitalism

with

a

high

aid? Since those possibilities were
Christ-like in power and simplic¬

a

Why Not Use Medicine in

your

tail."'

of

of

medicine

foreign
ly

as

0n

the

attack

broader

a

will

Commerce

Building,

this

people

a

humanitarian.

should be.

instrument

On

as

also

Stock

are pure-

This

But this

is

as

it

generation of

will

front

have

to

have

Americans is caught in the midst
of a battle to win the hearts and
souls

of

United

nations

States,

but

When

man

forth

the

for

not

—

the

the

rights

Soviet

Union

for

from

its

cha^pinfrom°0freedom
nnnrina^d?

borders
shall

be

.limited

shall

shall

will

and

we
we

to

P

iV

not

ouite

clear

whether

weSarebut
summon
summon

take

make

the

the

un

up

we

how
the
the

The

will

How

n'ationM
national

necessary

steps

sacri¬
fices?
The most effective way in
a
democracy, it seems to me, is
through a program of public edu¬

Russians

in

the

necessary

field

of

to

of

some

me

the

will

we

win

to

health

be disease.

Greatly expand
research

effort.

and

He

Kraus

kali
"C 1

Race

a

things it
to

race

for

do
a

our

medical

are

Product.
Raising
this
figure is easily within our reach,

Medical

Re-

recent national survey

a

with this lead-

We should also continue

to sup-

ing chemical producer, he is retiring as Vice-President in charge
tions.

He

this
As

longevity than the rest of

our

years, is still

10% lower than that

.

There

is

another

group

that

is

underprivileged

medically. That
male,
whose
chances of outliving his wife are
statistically worse than for a husis

the

American

band in any other country in the

(5)

unlock

a

concerted

basic

research,

particularly infor it by the

support

Government, which

is
now
bemused by the ease of
getting funds from Congress for
the popular purpose
of "curing" specific diseases. Medical
not

conducted

of

some

the

(c)

&

Co.

24

an

cal

peo-

only raise the average length of
but make living it a richer
experience for our elderly people
and for all those who love them.
A major break-through on canlife

cer

cardio-vascular

or

which will come, I

am

diseases,
convinced,

expectancy to 75 in almost one
giant leap. It would also win the

one-third

research

by

of the

has

bill
a

making that

and

the

industry,

research

which

no progress in

raising

The continued expansion

applied

drug

pharma¬

which

paid

nation's medi¬
last

proud
money

be

ac-

industrial

investment

op-

Offered to Investors

of

only through greater emphasis on
basic research, could raise our life

development

of

$25,000,000 Maryland
Highway Bond Issue

mysteries

that

way.

of

will

the

investigation, analysis

commercial

ties

Any
advances
in
knowledge
about the aging process will not

Federal

is

and

to

more

creased

research

Evans

in

portunities in Ohio and elsewhere,
holding
both
short-range
and
long-term interest to the firm,

drive

the life expectancy of
pie after they reach 65.

better.

(b) The urgent need for

Mr.

the

executive

development

Eastman

Make

them

train

and

in

&

Dillon, Union Securi¬
and
Halsey, Stuart

Co.
Inc.

are
joint managers
0f the group that offered on June

Road

issue of $25,000,000 State
Commission of Maryland 5,

pri- cent years by cutting the mortal- 4, 2.40, 2V2, 2.60, 2.70, 2.80, 2.90,
Ky fate of infants and of younger 3 and 3.10% State highway con-

fjrst-class researchers. We have
more

Kraus,

and

world.

(a) The growing scarcity of adults and almost
train

will

and

the company

of the whites, which is 70.2.

r

pr°blems' whlch should have
° Y 35 We expan<?'

staff

a

&

in

director

a

serve

capacity,

five in

population in recent years but his
life expectancy, which is only 63.2

is

continue to

groUpS in
our society.
The nonwhite has made greater progress

^
^erCk the Process of ageing, of heart disSharp & Dohme Research Labora- ease and cancer. We have made
u?'
tbef m^°.r most of our longevity gains in re-

to

21

service

banking department of Ball, Burge

National

search,"

vet-

of

years'

ciety.

and,

A

eran

(4) Raise the standard of living
health of the less privileged

institutes

in

vel

Ohio.

in 0U1 metropolitan so-

Al¬

Company,

e

of financial and shareholder rela-

a

Era

from

Diamond

Doc-

tion, which has already reached
tbe half-way mark in its camPaign to wipe malaria off the face
9^ *be earth, and is making great
inroads on other diseases.

year on medical research, or less
(han one-tenth of 1% of the Gross

New

to

Ball, Burge &

out

spending about $400 million

«The

was

comes

P.01"1 the World Health Organiza-

government,
industry, univer-

research

it

announced.

It

The

pharmaceutical

ceutical

Challenges Soviet Longevity Race

firm,

that

be

have

the

a

part¬

of

ner

to

carried

^e lw°nS°*e<^

hp

Th"nf,
£

are

order

now

and

become

that.

than

longer life:

shies

Ex¬

will

!lors' technicians and nurses will
nab™ad under primi?
with diseases
*ound

of

members

change,

and

of

subject,

associated

the New York

"
the world.
T^is new program will require

? special kind of training.

medicine.

can

in

thought

never

an

policy.

instincts

our

have

us

The head of our Central Intel¬
Let us, then, challenge the So¬
ligence Agency, Allen Dulles, has viet Union toa new kind of com¬
recently
spelled out the clear petition—a longevity race. Let us
meaning of this for America. The pit our patient-oriented system
economic expansion of Russia, he of medicine
against the Statewarned, is "the most serious chal¬ oriented system of Russia to see




far stronger than

are

Soviets, is going to make the
major break-throughs.

seems

Foreign Aid?
Most

out, Mr. Thompson, we are tread¬

ing'on

we

the

Here

living."

reception in Moscow: "Watch

in which

Outlines Program for Such

ity, I could not understand it."

higher stand¬ would satisfy these requirements.
A few weeks later It would also be in line with our
he was even more graphic about humanitarian traditions. In such
it when he told our Ambassador a contest the only real loser would
at

degenerative and crippling scourages of old age. Medical research,

-

level of Work and a

ard of

the

William *

—

become

burge & Kraus, Union

Thi® '

can-

diseases

For

1928, the Russians have expanded
at a rate twice as
fast as ours, despite the devas¬
tation of World War II. We would cation focussed on a national ob¬
do well if we took seriously the jective that everyone can under¬
inaugural promise Nikita Krush¬ stand and most citizens will work
chev made when be became Pre¬ to achieve.
mier in March and said: "We shall
A spirited competition with the
their economy

Ahead lie

us.

cardio-vascular

But

to

But

mostly behind
cer

in

disease.

Ball, Burge & Kraus
CLEVELAND,; Ohio

for

new

the

prevenUon and cure
contagious diseases—these are

0f

victory

.

why did our without either weakening the inforeign-aid planners, with their stitutions of freedom or
damaging
billion-dollar projects, ignore the the
dotctor
patient relationship,
enormous possibilities of medical
which is the keystone of Ameri-

off mixtion
vigor have to

For 30

nation.

a

it translate the brother-

seen

sallies

Competition

Soviet economy and brushing
and

and

hearts and souls of

of

have been focusing my atten¬

tion

fear

of medical aid to reach the

power

Soviet

growth.

long-term

weapons,

boys

friendship and underWe bad witnessed the

put it

me

the

always thought
that our
massive, dynamic economy—still
give

mere

peoples

a

standing.

an¬

have

twice

—change

by

everywhere

against

war

men,

oi/nmrxim

toward

William Evans Joins

first crop of graduates,
Establish

children

earth

.

Lippard's minimum goal. A new
school takes eight years
from - the
planning stage to its
(3)

onH
and

this

the

medical

_/•

lives

j

e

on

of

d^micsthe

medicine practised
hatred into

Secondly,

people to

our

our whole populaprove to the world
that; freedom. can win the battle
?.f fe as well as the battle of

1?
^2/^.

sacrificing
tending it.

the

}Yell-kfJnS of
I!01]; We will

women

year.

medical schools will have to start
at once,' if we are to reach Dean

II.,

„

accomplished, not by
freedom, but by ex¬

of

some

things we must do. If we do them
and succeed in lengthening; the

u/nmon

each

.Construction

increase it only by saving
„i»
of many of the
112,000
infants who died last
year before
can

the

the

was

once

countries.

moment

all this

least

day—a most unpleasant choreought to be able to get them

a

standards of the under-developed tife expectancy of

technical assist¬
future, let me try for a Vietnam in 1954 when he and four first year
ance effort.
enlisted
men
to put
volun- lengthen life for the
it into a little unskilled
average man,
Medicine should be put to work
perspective. In the first place, it teered for the hopeless job of giv- we will also enrich it, by improv¬
for freedom all over the world.
is not unique. Our own Territory, ing primitive medical care to half ing the health and
increasing the
As Dr. Thomas
million
Puerto Rico, with its Operation a
refugees
Dooley has said
streaming enjoyment of all mankind,
*
in "The Edge of Tomorrow," the
Bootstrap, has done even better. down from the North ahead of
From here on in the
longevity possibilities are
In just 15 years it added 50% to the Communists. This is what he
"Christ-like in
race is
going to be rigorous, which
"and" simplicity
the average length of life of its
And Dr
oer ence
eX"
citizens.
T °f the
'T °°"fi- Howard Rusk has already shown
By 1955 it had passed
We
had
seen
simnle
tender
the Soviet Union and reached a
the Russians, the way through its efforts to relife expectancy of 68 years.
And loving care—the crudest'kind of
into

If

we

to provide for the
needs of
more

the Soviet Union,

patent

drugs.

(2) Train

sick.
Periodical phyiscal examinations are standard practice in

earnings -to brush their

to meet the pressing needs of our
growing and ageing population
deal

One could ask: Why more
years?
This is a good question. But
the answer is even better.
Toil

down by
and
50s,

progress

a

think of Psalm 90,
10, which says: "The years
our life are three score years

Dooley, whose book, "The Edge
Tomorrow,"
was
published

of

beneficial

young, may

of

curve

they are
coming up

a

and
new

research to

new

more new

goal

say
are

be

incentives

beget

than

more

verse

talking about with

States.

steep

profit

protection where

at

particularly if

us,

environment

the age of 75, and do it first, we
you to- of
Dr. Vernon W. Lippard
Dean
accomplish far more than a
day: good health and a reasonably and ten; and, if by reason of of
Medicine at Yale, said
recently statistical feat. We will make the
long life. The Soviet Union has strength, they be
fourscore, yet is that we need 22 more medical nat10n stronger, and, as a ,bymade gigantic strides toward fill- their span but
toil and trouble." schools
just to take care of the Pr°duct,
we
will improve the
been

men

we

Soviets

should

eloquent words of Dr. Thomas A.

before

little

a

years to add to reach the

expectancy at birth of 67 years
compared with 69.5 in the United
'But

expectancy

not far behind and

run, win the
of mankind.

most

needs

of

life

our

will, competition arid promises to be
tough race.

the short

allegiance of most
One

spectrum

the

meet these needs

at least in

of

the

across

needs.

can

efficiently than

ress

The Soviets have made this

69.5,

They five

concern of the

with

With

the miracle
drugs developed in
the past 20 yearn have
emerged
in a capitalist

29

year

record

applause
the

status

with

the

of

need

a

of

equal

curing

partnership
of .disease. We

long-range

public health
education program aimed at per-

ciently for the benefit of America's health. Let's keep remind-

suading

ing ourselves that almost all of

they

the

American

visit the doctor
are

more

people

to

often when

well than when they are

bonds, second issue,

se-

ries L, at prices to yield from 1%
for bonds due
July

1, 1959 to
3.10% for the 1973 maturity. The
was awarded the issue at

group

competitive sale
a

net

interest

on

cost

a

bid naming

of

3.099%
the combination of coupons,
The

series

L

bonds, which

for

are

rated

Aa by Moody's and A-l by
Standard & Poor's, are the seventh
installment
authorized
by
the

Commission for the financing in
part of its 12-year program for
construction and reconstruction of
the State's highway system.
are

(6) Liff preventive medicine to

and

work effi-

of the world.

gtruction

They

payable solely from the
of the Commission,

rev-

enues

.

With Merrill Lynch
especial to the financial chronicle)

CLEVELAND, Ohio—Robert L.
Potts is now with Merrill Lynch,
Pierce, Fenner & Smith, 216 Su¬
perior Avenue, N. E.
,

The Comviercial and

Monetary

on

Continued from

first page

there

Reform

a

ally the precious metals came to
be more and more generally used

or

lawyer, or
units
of

a

more

for this purpose.

amortization
creates

circulation in

affect

it then became cus¬
tomary for the administration of
a- community to mould the metals

itself.

To facilitate their

alloy, size
impress each
disc with a stamp expressing its
contents.
Thus the nominal unit
and to

weight

is in

created.
the first step

was

in

the

on

development of our
present monetary systems. Previ¬
ously the metals, used in settle¬
ment
of
"economic
exertions,"
and exchanged

held

exclu¬

sively in their quality as valuable
and
easily exchangeable goods,
and the money of those days was
indeed nothing else than what the
economists
of
the
old
schools

it

that

taught

commodity.
authorities

was,

namely,

an

economy

a

The action taken by
coining metals

in

Thursday, June 26, 1958

.

let

see

us

economy

an

how this works

which uses money.

was

tion.

There has of late been some

discussion of
istered

mortgages

of

the financial

our

Money cannot properly be

the

for

structure

purpose

made

being otherwise than in ex¬

into

change for goods or for services.
The distribution of goods by mid¬

.

in

another in¬
strument which carries the same
dlemen

has

inevitably
tend
to
in the end.

will

created

Inflation

•

The

because "the

out

turel financed

-As,'-

•

none

their distribution.

Originally, bank

mands

and

thus

of what

settled

our

he needs has un¬

whole

and

economic

financial balance and our political
balance to boot/ As long as

wagesi continue

and

prices
their climb

problem will remain
insoluble and the resulting politi¬
farm

our

cal distortions incurable.

persistent "Considering first our domestic
price-wage spiral which" has cut situation, it requires no lengthy
our dollar almost in half with all
explanation that, wage - increases
the

:V,'v,--;1'

VIII

-

economy.

own

our

compare

their

farmer

liquidity of

unions

labor

of

engendered

=

prices of

'can

with

the fever of credit-generated

was

1

industrial, prod¬
in importance
catastrophic effect on
the farmer: The rising cost to the
ucts

slump,"2 which was a rather lefthanded way of saying that what

•:V;;

"'f,'

Problem

Farm

not at'

are

;

.

a * major
national problem
of 1he consequences
of in¬

flated

evil,; because a price-wage spiral;
purchases, as was bound to hap-.: at home extends its influence far
pen, had abated:
.V;
beyond our own borders and thus
And, as usual one ill begets an-.; cannot fail to affect—and affect
other, the swept-up demand made deeply—our relations with other
its influence felt on the wage de¬ countries,
just as it unbalances

economic attribute as money it¬
The important matter of infla¬
self; it is the commercial accept¬ tion becomes at once easier to un¬
ance of the
distributor who will
derstand if it is kept in mind that
collect money for the goods upon
the use of money is to pay for

apparent.

once

of raising world p ices,
collapse of. exosndi-

as a means

which

have advantages

posals were devised for the par¬
ticular situation in
which Eng¬
land found itself at the time a id

„

flatten themselves out

had

by labor unions for

wage increases, even in this time
of recession, made it practically
Keynes did not, as some seem impossible for producers to risk
to believe, advocate indiscrimin¬
being - squeezed ' between
rising
ate borrowing as. a cure-all for
costs and falling prices. • - •■/=- unemployment. Furthermore, one
And- so the conclusion,' suggests
of
his
objectives was- to raise
itself that it may be best to trans¬
prices. Few will contend that our
late lower production costs into
already inflated price level needs
lower prices to the consumer. For
to be further stimulated.
Keynes
the economy as k whole; this will
himself made it clear that his pro¬

,

'

causes

direction

this

in

demands

not

wild guess that

a

would already have

progress

been

years,

once

signs

some

are

It is not

more

generating new demand for
durable -goods will only prolong
the period of recuperation, if in¬
deed it can be done at all.
~

International Repercussions
Worse

■

called Any deviations due to temporary

finally

hereof already in certain retailing

sectors.

economy

eral

will

level

There

demand.

credit on top of
swollen
instalment

lar upon a gullible United States
during the last sev¬ to cover up the economic folly of
whether we look at postwar
political
behavior. . It
the;.ratio of the liquid assets of seems strange that it should be
our banks to their deposits, or at
necessary
to recall what should
the doctor, or the lawyer, or the
the ratio of the publicls instal- ;
still be vividly in living memory,
artist receives more, what he re¬
ment
debt to its disposable inceives
will always be measured
but, unfortunately, even ' among
or, again at the liquidity: those
who by their training or
with reference to the exchange- come,
ratio of our large corporate enter- ;■ their
profession should
know
value
received
by
the average
prises. The handwriting had been • better there are many today; who
laborer.
For
the same
natural
on the wall for not less than two
laws
that
again
would
cure v the
conse¬
govern
a
moneyless
years.
What we had was a two- quences of too much credit by
economy operate in the economy
inflationary • movement, still more credit and the conse¬
which uses money. Therefore, the pronged
because the credit-swollen whip¬
measure of exchange-value which
quences of inflation by ktill more
demand for goods and inflation.:
:
is money, will always be andP will ped-up
services was accompanied by exr
The effect of an hypertrophied
always have to be a function of
tensions of our producing facilcredit structure upon: the wage
the exchange value of the aver¬
ities far in excess * of our needs demands of labor unions is twice
age
wage level and vice versa.

which in such an econ¬
omy is the measure of exchangevalue.
And if the technician, or
economy,

price

new

selves; what has

tion

But the end is not

respond to the law of supply and

not

us

the

that

deceive our¬ had
happened was the inevitable
befallen us now ; bursting of a credit bubble which
was primarily caused by the con¬
had been insanely foisted upon a
stant
and progressive, deteriora¬ distracted world and in particu¬
let

For

theory of admin¬

a

prices.

yet and it is more likely than not

personal charges
the home owner

cf loins ad¬
the effects: of* past exeesses,'.
vanced by- the United States was
the chief agency in starting the
Credit Inflation u

in
Henry
apply this
simple
thruism .-on
a
national
scale.J And then, of course, there
is the salutary prod of competi¬
more.

first to

the

Ford

.

opened the era of the creation of
money by governmental charter:
of "Charter Money". *
1

.

the end benefit them

of

to

means

a

it

already

credit

those who seek in mone¬

management

without money.

parallel is striking. The aver¬
age wage in a money economy is
the
counterpart of the
average
consumed
time
in
a
moneyless

long way of

were

erase

are

tary

This

It remains the same.

The

of value was

This

there

unit of exchange-value

the

Now

uniform

of

discs

into

f

.

will expand their markets and

the rent.

Creating
an

home

of

new

no

against

as

saves

artist receive pened then, because today again

exchange - value
worker, does not

than the average

such capacity,

and

an

out except through the
As of now, while the de¬
on, nature takes its
The first impulse toward

way

course.

.

-

no

valley.

bate is going

should
almost
surely
Secretary of Commerce Herbert recovery
Hoover.
How great are the dan¬ come in the home building indus¬
gers which can lurk in the actions try. And that is the soundest way,
of money managers was demon¬ because the cost of interest and

his time below the average, just
sound currency,
as
he would have achieved less
so no currency can be sound with¬
strated to us here in the United
than his more efficient neighbor,
out a well-balanced credit struc¬
States after, in the second half of
had both worked only for their
ture.
own
needs.
Conversely, if he is 1927 "under a daring, but care¬
more
efficent than his neighbor, fully devised plan, the Federal
Reserve System, by reducing its
his yield will be greater whether
Money as a Means of Payment
discount
rates to 3Mj %
and by
he works only for himself or also
•♦If a
person
has rendered an exchanges products or services. If purchasing government securities
on
a
economic service or has surren¬
large scale, had embarked
he chooses to forego some of the
dered
commodities, he may or
things his neighbor makes or ac¬ upon a policy of easing money in
the United States with a view to
may
not choose immediately to
quires for himself by devoting
require some ' other service or some of his work-time to the aiding European countries, par¬
other commodities in exchange for
fashioning of tools, and if, after ticularly; Great Britain, in their
efforts to establish or re-establish
his own "economic exertion," i.e.,
having made these tools, he in¬
their gold standards."2 The fail¬
he may wish to retain an option creases his
production, he draws
ure of all the later efforts of the
on such other service or commod¬
ahead of his neighbor and receives
Federal
Reserve
managers
to
ities. In the early, primitive days
greater exchange values than his
undo the baleful effects of this
of economic intercourse, he would
neighbor.
But his greater ex¬
in such a case acquired commodi¬
piece
of
monetary
change values will still be meas¬ particular"
ties which by their very character ured
by his neighbors' average legerdemain is writ large in the
Great
were
Depression which subse¬
constantly in demand and
performance. He has, in fact, in¬
could therefore be easily recon¬
creased
the
units
of exchange quently engulfed our country' and
the rest of the world: It is useful
verted into other commodities or
value he is able to command. The
to remind ourselves of what hap¬
into services at any time. Gradu¬
fact that a technician, or a doctor,

sound without

is

ap¬

peared the report in book form on
Business Cycles and Unemploy¬
ment under the aegis of the then

Ont Mtnetaiy Economy

.

Financial Chronicle

(2882)

30

still,

rising: price

our

tb poison our

will continue

level

relations

international

and.

make, enemies of those who
be

our

to

should"

Our, efforts to rid
abroad of part of the;

friends.

ourselves

farm surpluses

stupendous

mulated under

our

accu¬

so-called price

parity system on one hand, and'
the artificially increased cost of -

price-supported

our

farm -prod-'
to;

ucts to those abroad who* need

buy them on the other hand;

make*

.being imposed

others1'feel

upon-'

Important* as this is, it
does not begin to compare with:
the baleful effect of the rising cost,
by

us.

of

our

effect
the

This:
upsets
those:
products:

products.

industrial
is

two-prongedJ.

It

balance of payments of

what this means to the social se¬ in one industry must have reper¬
nations who import our
capital curity benefits, the life insurance cussions throughout other indus¬ —and, incidentally decreases our*
and all other life savings of our- tries and indeed the entire con.r
ability to sell to them. And, which
goods. Before money passes hands
entire population.
sumption pattern of the nation. is infinitely more serious, it infu¬
(even if it is borrowed money)
its from one account to another.
Other industries may or may not riates
other
nations^ each timeAll this would be bad enough
there must have been a delivery
Later the banks began to make'
of
goods or
a
performance of if it were merely a thing of the be able to absorb similar wage when we raise import duties to;
loans from
deposit moneys, as¬ service. The movement of
increases or to compensate there¬
money past.
"protect" ourselves against im-;
Unfortunately, the problem
suming. the responsibility for the is
for by increasing prices.
We all ports from countries with lower
secondary; the primary occur¬ is still with us, because the wage
loans.
rence is the sale of goods or serv¬
spiral can never be kept within know how railroads and other wage standards, conveniently for-:
The creation of enterprises fi¬ ices. From here on it is not diffi¬ bounds
as
long as an inflated private and public service indus¬ getting that we ourselves contin-nanced by securities, and the ac¬ cult to see that the monetary sit¬ credit structure keeps on creating tries are periodically confronted ually enhance the difference be¬
tivities of stock exchanges which uation is in reality the result of artificial
purchasing power be¬ with wage hikes which are en¬ tween our. wage level and theirs,
gave to invested capital a charac¬ exchanges of goods and services; yond the reasonable capacity of forced whether an enterprise can which they cannot increase with
ter of greater mobility
through more accurately of the relation¬ the
economy
to
sustain.
For afford them or not. But the all- impunity as- this would;" impair

only of actual
cash, and all the banks were sup¬
posed to do was to transfer depos¬
deposits consisted

goods and services. The goods can

be

consumer

goods

or

ship
between
consumer
goods, months on end ye witness the important question whether the their, ability to export to their
temporarily into cash capital goods and services. If we debate among economists arid be¬ economy as a Whole can stand accustomed markets other ;tham
by sale or pledge, have largely could keep these in perfect bal¬ tween economists and politicians this kind.of thing is studiously the United States, It has recent-;
All published statistics
confused the limits between liquid ance we would have no monetary and we are no nearer an answer. avoided.
l'y been suggested that all they;
and
non-liquid assets;
but the problems and we would have no Why? Because the kind of answer carefully measure the extent of need to do is to raise their wagethe
inflationary
attrition;
this level; this must sound to them:
principle stands that in proportion unemployment. We all know, of they are looking for does not
as
bank
deposits and currency course, that there all kinds of' dis¬ exist. There is no royal way to alone proves that it is a- deadly like a bitter irony. - ■ .*

facility of converting it per¬

the

manently

or

notes

covered by assets carry¬

are

.

ing. the same economic attributes
as
they do the basic monetary

position is stronger or weaker.
♦

turbances which prevent us from
of

these

little
are

n

Some

attaining this happy- state.
disturbances

our

own

do

Others^

about.
making.

nothing

or

of

can

we

tion. Inflation is

We
the

hit
we

Money

no

as a

IV

Measure of Value

primitive community where,
money exists, all exchanges of

In

goods and services are

necessarily

we

in

Monetary Management

a

Much is being said and written
about
monetary management to

effects

undo, the

can

infla¬

poison.

street.

of

'

VI

ix

-

Prices

only sweat it out and in

meantime

help those hardest

Conclusion-

back for a moment to

The
disadvantages,, both
at
without home and abroad, of our balloon¬
money. We have seen that he who-- ing prices and wages are so great
just have to watch our step fashions tools grows richer al¬ and so widespread that it is al-:
future in creating purchasing
though he puts in no more timev most
incomprehensible that we

the rough spots.

And if
do not want it to happen again
over

power

by

credit

a one-way

based

on

credit.

It is only

not drinking excessively that
can
avoid
getting
drunk.

Let

our

go

us

simile of an economy

than before: in

the same working-

have done

so

little- to curb them.;

Con¬ One should have thought that we
versely, his per. unit cost in work¬ could show a greater capacity to
regulate the economy and em¬
Keeping our credit struture on an ing-time is lower. The hotly de¬ run our economy and to> govern
they require. The average time
ployment, especially since May—
even keel, is not an
consumed in producing the simple
easy matter. bated
If we
see
the selfquestion is who shall profit ourselves.
nard Keynes set out to change our
Nobody wants to "hold back pros¬ from the cheaper production. The
•goods or performing the simple economic
discipline demonstrated by- much
thinking. It may- here
made with reference to the

services will
be

the

as a

measure

effort

matter of course
for
such
ex¬

changes.' If one works slowly
will find the exchange value

he
of

"Die
The
French used the term "monnaie fiduciaire" before Knapp published his theo¬
ries, but they applied it to paper money
i

1 Prof;

Georgr

FHedrich

Knapp,

staatfiche The^rie des Gelde«," 1905.

only.




be

noted

that

some

years

before

he began his writings a proposal,
ascribed
to
the
British, trade-

we

perity,'" and there is always the
cry
of the politicians that it is
"undemocratic" not. to give the

little fellow the credit he wants.
unionist Sidney Webb, was made
But when we let the little fellow
that the execution of public works
borrow himeslf into trouble and
be undertaken as far as possible
the economy into a tailspin there
in times of slack employment as
a means

fore

of stabilization.

Keynes

published

Also be¬

his

book

2 Paul
serve

M.

Warburg-,

The Federal

System, Vol. I, page 502.

Re-

time he has

unions

produced more.

it

as

and

that

his

new

Many

the

claim

workers. The

prize for inventiveness
investment in machinery.

producers,
giving
the

benefit

benefit for the^ smaller and

manufacturer claims

of

lower

however,
consumer

feel
the

production costs

tries,
we

have

3 Keynes,

The

Means

to

Prosperity,

less

powerful

Sweden
reason

no

proud of ourselves.
not the worst of it*

ists

preach

prise
1933, page 19.-

like

its

And that is
The commun¬

that our free

system

coun¬

for' instance,
to be- overly

enter¬

carries the seed of

destruction

within

itself.

It

Volume

*

187-

Number

5754

.

.

.

The Commercial and Financial Chronicle

(2883)
would

not

prove

them

be

difficult

too

to

Continued from page

9

For there is

wrong.

-v.?
,

v

31

,

,

*

nothing

system

-

really, the

be viewed

can

with

matter

as

background

of

those

m*

mere

a

V

*■

1

»I

-

-

No: system

in

-

it

*

*

*

*

-

-

tem

only- work, and it will; do-all'the things that this nation
when we learn that our-needs to do in the period ahead,

can

work,

best economic doctrine is the1

/

doc--Tbe1 threat—economic

well

as

absentee

-

/ mined

to

make

it

masters,

govern themselvef
work** They knew

form

v •

that 8/ acqiiiiiti'iife

alone, is

[

cance

meaning less
•

it

andf

century, if

A «!■
Hi G

•

;

_

lqt of Revere headaches in

In

24

Co

PuWic?y

issue

an

&

of

the

will

of

be

our

Tire

&

4%% * sinking- fund

pene-

inflation

tain

offering, to. holders ofits common

s"bscrlbe'^

someone

$2,511,400 of convertible sub-

wants

to

do—by

growth

■

..

-

.

,

.

.

,

i

t

oF

shares

record
24,

June

/

3:30

The offer,

whiehj will

expire on July 10, is underwritten
by the same group as the offering
of sinking fund debentures;:, ; V
The,, sinking
fund debentures
are
redeemable at prices scaled
from 104% %• to 100. "■>. V:
convertible

The

subordinated

that

businesses

the

in

dynamic

in

result,

a

we

a too-heavy
industries that

slowly.
about these

more

New

York

metropolitan re¬
studies will

Some of these

to

appear

in

the

months

area.

1

Conclusions

™

that the nation
v

;

To fulfill the final part' of my
Assignment, I should tell you pre-

to

105

100.

area/

Obviously, I do not possess
the equipment to deliver fully on
$1,387,- this promise—as a nonexpert in
sinking the real estate field I can do no......

Proceeds from the sales will be
used to redeem and retire

of

000

outstanding

3%%

due 1966, and
20,400 outstanding shares of 6%
cumulative preferred stock, $100

fund ^debentures,

value,

par

and to provide addir
other corporate

funds for

tibnal

purposes.

.

effect to the
financing,
capitalization
Giving

/.

current
of the

will consist of the new ness:
being offered and 552,504
(i) General growth in the U. S.
shares of common stock, $5 par economy is important to New York
issues

.

nomenaL

—this sounds trite, yet it is parwhich ticularly important, for instance,
is
headquartered
at Mansfield, ^in appraising the future of office
Ohio, were $59,722,000 in 1957 and building construction. If the gennet
earnings
were
$1,523,000, eral economy moves ahead at the

equal after preferred dividends to 4% growth trend of recent years,

with

that the busi¬
„

can

growth

achieve

the

in

phe-

a

years

share, compared ations in New York or to move
34 cents in the correspond- such operations to New York.
cents per

ing period of 1957.

With Richard E. Kohn
N. J.-—William
joined
Richard E.
Kohn & Co. and will be associated
with the firm s Elizabeth office at
279 North Broad Street.
The firm of Richard E. Kohn &
ELIZABETH,

Tucker

has

_

Co. has its main
ton Street in
^

office at 20 Clin-

Newark.
i

o

i

Joins Reinholdt & Gardner

In the process our main
will be how to produce
enough and how to avoid inflation. We shall, of course, have
periodic recessions, but I believe

serve so

far

the central

as

reserve

city banks (located in New York

fects

Chicago) were concerned.
We also hear from Washington
the

Board

reserve

the

by

may,

steps,

differential in. this

requirement

when

and

the

rate

renewed.

are

is

raised

Probably

or

that

now

the

full effect of the lower rates will
not be felt until well into the third

quarter,

into the fourth.

or

But while general
expenses have
not increased
unduly, the banks
in

are

far

as

something of
interest rates

a

quandary

are

so

city banks and the banks in the
reserve cities (banks in
large cit¬
cago).

of this sort would lend consider¬
able assistance to the New York
and the

Chicago banks by supply¬
ing additional funds - for invest¬
ment, funds that are now steri¬
lized by the higher reserve limita¬
tion.

Of

concerned.

When money was tight the banks
made every effort to stimulate de¬

posit volume, and much of it

was

The differential that exists
18% versus 16% %. A move

now is

course

any

further changing

of requirements will be tied-in
with the Reserve's money
policy,
but it is a fairly general expecta¬

tion that lower figures will be
attained, ultimately to the advan¬
sizable shift of funds from loans tage of the banks.

interest-bearing funds. Now, with
relatively

easier

and

money

a

to lower
interest-bearing invest¬
ments, the banks have the choice
of

cutting interest rates and losing
deposits, or of maintaining
on
interest-bearing deposits
and being hard put to have their
funds earn their keep.
some

Russell K.

Sparks With
Barret, Filch, North

rates

KANSAS CITY, Mo.

the shrinkage in loan vol¬
since around the turn of the

ume

we

can

avoid

major and

pro-

—

Russell

K. Sparks has

But

been

appoint¬

year has not been too serious. The

ed Manager of

Federal Reserve statement issued
on the 19th of June
reported busi¬

the

Trading
Department of

ness

loans up by $268,000,000. This

Barret;

was

chiefly due to borrowing for

North

for

the

1006Baltimore

Avenue,

Set

Midwest Stock

York

down

a

banks

to

decline of

alongside

indices

mem¬

bers of the

$741,000,000.
$11,053,000,000,
$12,081,000,000 a year ear¬

or

result

Co.

since

New

Christmas

lier,

Fitch,
&

Incorporated,

The present total is

that

of

a

number of other

have

the

Exchange. Mr*
Sparks for
former Mana-

7J/2%.

some

K.

Kussell

suffered

business

as

a

ger
Sparks

of the

Trading De¬

recession,

partment

Melvin

}°ok, forward to a prosperity in
the decades ahead that wi 1 dwarf

helped somewhat by the extensive
corporate and state and municipal

past exPerience.

of

now

investmeiTrCo "walpark Building"
''

paid off, the funds
With Foster & Marshall
purchase
(Special to The Financial Chronicle)
vgovernment and corporate bonds,
MEDFORD, Oregon-—-Collier H.
as
well as tax-exempt state and
municipals. An added factor that Buffington has joined the staff of
used by the banks to

will

Two With Commonwealth
(Special to The Financial Chronicle)

COLUMBUS,

Ohio —Daniel

E.

mental

tend

to

cushion

the

lower

trend in earnings is the substantial
release in reserves resulting from
the

Federal

Board's

Reserve

Foster

&

Central

Avenue.

was

Broad Street.

problem

nesses.

prjce
^et

It

any

even

and

facing

real

the

con-

_

estate

.

is perfectly possible

With Merrill Lynch

to

product out of the margood times. The fact

^at

building
costs
have
riren
rapidly in recent years than
prices in general highlights the

change

in

(Special to The Financial Chronicle)

importance

of

this

problem

of

reserve

require-

DAYTON,
is

Ohio
now

—

Thomas H.
Merrill

with

Pierce, Fenner
American Building.
Lynch,

&

PORTLAND, Oregon

FIRE & CASUALTY

26 BISIIOPSGATE, LONDON, E.C.2

Bulletin

Ramona

F. Heath and Kenneth T. LaMear

connected with E. F.
Hinkle & Co., Inc., Cascade Bldg.
are

now

on

lx>ndon Branches:

Bankers

to

the Government in: ADEN

Laird, Bissell & Meeds
Members

•

New

York

Stock

Exchange

Members

KENYA,

UGANDA, ZANZIBAR A som ALII-AND PROTECTORATE

American

Stock

Exchange

20

Branches in:

BROADWAY,
Bell

UGANDA,

ADEN, SOMALILAND PROTECTORATE,
NORTHERN AND SOUTHERN RHODESIA.

NEW

YORK

5, N. 1

Telephone: BArclay 7-3500

INDIA. PAKISTAN. CFYI ON, BURMA. KENYA,

TANGANYIKA, 7AN7IBAR

Request

S.W.I

54 PARLIAMENT STREET. S.W.I

—

Stephenson,

INSURANCE STOCKS

13 ST. JAMES'S SQUARE.

(Special to The Financial Chronicle)

with

South

Buffington

1957 EARNINGS COMPARISON

Almalgamating National Bank oj India Lid.
and Grind/ays Bank Lid.

Smith,

Two With E. F. Hinkle

formerly

38

Mr.

LIMITED

BANK

Head Office:

Blalock

Marshall,

Leydecker & Co.

AND

OVERSEAS

NATTONAL

more

costs.

the

GRINDLAYS

busi-

in

Company, 10 Pines Road. All
formerly with Edward E.

As loans are

are

Ohio — Edward
with Central States

MANSFIELD,
Matey is

don

were

rates.

(Special to The Financial Chronicle)

Armel and Homer V. Beavers are
now
connected
with Commonwealth Securities Corp., 150 East

struction

Gor¬

financing that has been going on, Mathews
Co.
attracted by the loweri borrowing

With Central States

ST. LOUIS,




thing, the full ef¬

versus

(2) Granted general economic
growth in the nation, the problem of keeping the rise in costs
in hand may be the most funda-

(3) Despite the boom in Office
Mo.—Paul M. Carl- buildings, New York City has not
son
has become connected with shared fully in the general ecoReinholdt & Gardner, 4^0 Locust nomic growth of the nation durStreet, members of the New York ing the past decade. This is a litand Midwest Stock Exchanges.
tie hard to realize—yet it is a fact
(Special to The i-inancial Chronicle)

one

ahead.

.

$2.50 a share. In the first quarter more and more companies are
of 1958 earnings were equivalent likely to expand head office oper42

better the like periods of

concern

Net sales of the company,

to

that,

in April one percentage
point more was lopped from the
requirement by the Federal Re4

this is not a bad showing. Unless, the Kansas
longed depressions,
City office of E.:F,
Finally, I have tried to suggest of course, there is a turn for the Hutton & Company.
that
New York
City has not better in the general economic sit¬
more than suggest certain general shared
in the nation's general uation, this could worsen, but as
Join Gordon Staff
economic conclusions which may growth in recent decades. It seems matters stand today the banks are
•
have some bearing on the affairs to me that this is a matter for not too badly off.
(Special 10 The Financial Chronicle)
Money rates, while somewhat
in which all of you are expert.
serious concern. Yet I have full
REVERE, Mass. — Harold S.
Having made this disclaimer, let confidence that measures can be lower, are nowhere near as un¬
Gordon, Leonard Gordon, Eugene
me proceed to set forth several developed and adopted to promote favorable for bank earnings as E.
Grant, Milton Ross, Matthew
conclusions which could influence the growth of this area. If so, they were for long periods in the
Striggles, and Perry Yanow are
future prospects for your busi- business in New York City can 1930's and 1940's. They have been now affiliated with

company

value.

complaint. It is the expense factor
that will be to blame if
earnings
suffer. But it is our forecast

again

fore year's end, followed by a tax purposes on the mid-June tax
date.
The increase brought the
normal recovery next year,
Second, I am fully confident cumulative decline in loan volume

t.

converted into fcisely what these general trends
1 common stock at $20 per share, add up to for the New York area
They are redeemable at prices and for1 real estate values in the
from

I believe

decline is bottoming
_T
„

out, and
Bi,
that we shall see an upturn beness

perity and growth, and price stability,'too.
-

debentures may be

scaled

First,

our economy has
bias. It is possible

New York City Trends

income is concerned, a num¬
officials say they have no

ies other than New York and Chi¬

begin

we may

■

as

ber of

lowered do not, of
course, pay the
changed rate until they mature

the

achieve the felicitous
situation in' which we have pros^-

}•;

far

are estimated- to have
billion- dollars for the use
banks countrywide; and

a

the

time

1

stock^held; argUmerit that
p.m.,vEpST, an inflationary

of

exists between the central reserve

easy

common

at.

-

freed

So

of the lower interest rates
has not yet been felt. Loans that
are on the books
of a bank at a

,

22

that

eliminate

™

of

opinion

reading for the shareholders.

For

gion.

doing what he
making it less

™

the

or

I've touched on so many diverse
to. borrow, or requiring
rQ,frni^
tul
higher, taxes, or restraint on the matters in this discussion that I
debentures,
feel
an
obligation
to
sum
up
h wage-price front. Yet I believe
1973, on the* basis of $100r princi-we are
making progress, and I briefly the main points I have
pal amount of debentures for*; each warn
tried to register.
yoii not to accept easily the

f

for

of

they will not make unsatisfactory

1957.

by the appropriate
fiscal policies,

from

and March

is

Reductions

equal

area.

,

time, Mansfield is

partment

ity.

growth of the New York

of monetary and

use

reserve

that

past two years studying trends in

,v

debentures,

deposit liabil¬
of xk oi 1% in
requirements in February

lease of the second
quarter state¬
ments of the banks, and this de¬

earnings - (or, first half if that
period is preferred) will either

ahead. I believe they will be most
interesting and significant. I have
The problem,is that anti-inflation high hopes that they will point
due
1973, priced at 99%%.*: plus.
measures
are, in their very nathe way to action designed to maccrued interest to yield 4.90%.
tpre, unpopular.
They all keep crease the prosperity of this vast
v
At the same
field

Bank Stocks
ments against bank

contrary, I believe it is important
to businessmen like yourselves to
promote
the general economic

We will know

Nation. This is not pridn'june <$>$&: SJSfSlL how to con*
believe that we know

$5,000,000 Mans¬
Rubber
Company

—

re¬

and in

matters shortly. A group of econ¬
omists have been at work for the

biggest prob-

achieve

to

the

generally speaking, second quarter

grows

growth and

see

grow. To the

concentration

meeting this challenge of So-

n^o^io^ilems

^eklr

G

as

growth fields like chemicals, nuclear technology, electronics and

period ahead.

llOmpany UOnQS^ration*one

„

A

This Week
We are now about to

new

economic power

the TfSSR, and its growing in-

a

fast

grow as

flrience throughout the underde- office equipment. As
RfftM|l /? ^;"Vbloped areas, promises to give us have been left with
~W

D ■■ I* It j*» Ommnamu DahiIaviet. economic
a

rule that says that

no

lack of growth is that we have
not succeeded in attracting enough

we

with-an.j

Offers Mansfield Tire &

by

There is

New York has to

*'*,'.*•!tjr

l*vvnvl

nllDDCr

By ARTHUR B. WALLACE

our

that in

maintain our
'and^Nevertheless, the growv

-

that pfer capita income in New
York City,, after adjusting for
higher prices and higher taxes is
very little higher now than it was
thirty years ago. In contrast, per
capita income for the nation as a
whole has gone up almost 60%.»

near

tha^^^jp£^ahfibt possibly do

i» endowed.

-"r\-

bapita income in the

Narid;'

only through the spirit

.

Bank and Insurance Stocks

I

■

v As to how to do this, I have no
fu- easy prescription to offer. I sus' The fact is that the Soviet pect that one of the reasons for

deter- pdr

were

;

which

At

New York should not

as

of charity;- good will
arid m i hi Va r y — posed by the rapid
helpfulness which our religious-*
growth of the- Soviet Union offers
heritage teaches-".us.
^hVost/ rigorous challenge., Mr.
Our Republic was
founded-by-Khrushchev-has announced that
People who, having tasted rule by • th6 Soviet goal is to equal the U.S..

-

Jfc

1 —#

the nation. On the other hand, I
know of no rule that says that.

trine

•

'

the

qualities of
will--run-.as-tax reform, a new farm policy,
without the full cooperation of its the elimination of rigidities and
-human components. The question efforts to encourage research. It.
is not whether our system fails is
my- personal
conviction that
:*
us, but whether we fail our sys- the-adoption .of such a program
tem.
The communist system can would give/us a rate of economic
only be run by a master class advance far greater than that, we
which devours its own children-managed to achieve in the past.'
and despoils other lands. Our sysGrowth is essential if we are to
•'

i-

W

The Immediate and Longer Term
"Economic Outlook foi Our Nation

<L.

A.

Teletype—NY

Glbbg.

1-1248-49

Manager Trading DepLF

Sr>ertoiists

in

Banh

Stocks

Financial Chronicle

The Commercial and

32

.

.

Thursday, June 26, 1958

.

(2884;

made

was

in

Vice-President

a

CONSOLIDATIONS
NEW BRANCHES
NEW OFFICERS, ETC.

Schaefer

CAPITALIZATIONS

of

■,

than

ft

ft

ft

.

330,934. Accordingly, total capital
funds as stated will not be less

director.

liam B. Bergen a

National
Bank
Savings and Trust Company of St.

Balti¬

Bank,

National

Baltimore

#

e

Louis, Mo., with common stock of

Md., and National Bank of
Cockeysville, Md., has approved

more,

Edward L. Vice-President, it was announced
Herbert Holden, Jr., by Theodore R. Schwarz, Presi¬

William F. Cordner,
and

Crabbe
Iiave

appointed Vice-Presi¬

been

National City

by The First

dents

jftank of New York.

with Metropoli¬

Cordner is

Mr.

tan Group of the Bank's National
Division; Mr. Crabbe is associated
with the Personal Banking Dis¬

Division; and Mr.

trict, National

Transportation
National
Division.
formerly Assistant

Holden is with the

Department,

They were
Vice-President.

Axe, President of
Science and Electronics Cor¬

Mrs. Ruth H.
Axe

plans for

poration and Axe Securities Cor¬
poration, has been elected to the
The new Vice Presidents are:
Tarry town Advisory Board of Na¬
Thomas Byrne, formerly an As¬
tional Bank of Westchester, White
sistant Vice-President, and Wil¬
Plains, N. Y., according to an an¬
liam
H.
Richardot, f o r m e r 1 y
nouncement
by Harold J. Mar¬
Comptroller-Auditor, Charles T.
shall, President. The action was
Potuzak, formerly Treasurer, was taken
at
the
regular
monthly
elected Vicet-President-Treasurer.
meeting of the Board on June 19.
Mr.
Schwarz
also
announced
**
*'
*
.V,V,
that George E. Rowe, an Assistant
Merger certificate was issued
Secretary, has been elected an As¬
sistant Vice-President. In addition, approving and making effective,
Miss
Florence
Kurtz has been as of the close of business June 6,

ft

ft

ft

Security

The

the Fidelity-

both

of

Directors

Great Neck, N. Y.

$18,330,934.

■

Bank & Trust Co.,

*

will not be less than $1,-

Profits
-

Undivided

and. its

$9,500,000

.

Baltimore
National
Bank, Baltimore, Md., elected Wil¬
Fidelity

Myron M. Simonson, Senior VicePresident and Henry G. Steinberg,
Vice-President and Trust Officer
of the Central

'

ft

ft

ft

value of $50.00. The Surplus
the consolidated bank will be

par

Keily,

been

has

Executive Vice-President,

elected

Bankers

and

REVISED

G.

150,000 shares each of a

sented by

III,

Chamberlin,

B.

George W. Lapham and Robert K. Rockhill.

*•

•>*

v

Walter

L.

News About Banks

Wiliam

are

John

1952.

$750,000,

with

merged

was

into Mutual Bank and Trust

a merger.

and

Com¬

Mo., under the
charter of the latter bank and un¬
The Chicago City Bank & Trust
der the title Security-Mutual Bank
Co., Chicago, 111., advanced the fol¬ and Trust Company, effective at
lowing men from Assistant Vice- the close of business on May 29.
Presidents
to
Vice - Presidents:
ft
ft
ft

dent.

ft

William C. Fahs-

C. Rathje,

Fred

common

ft

Savannah, Ga.,

was

increased from

$10,500,000 to $11,500,000, effective
June 9.
(Number of shares out¬

■

Min-.

Midland National Bank of

Southern National Bank,

and

zens

George O. Carlson, former Cashier,
was also elected a Vice-President.
*

the sale of new stock, the
capital stock of The Citi¬

By

bender, Henry J. Scavone, Fred W.
Burmeister and Wilbur R. Haynie.

Louis,

St.

pany,

ft

ft

•.

time the Bank an¬
standing — T,150,000 shares, par
neapolis, Minn., increased its com¬ value
the merger of The National Bank
promotion of William
$10.)
-;:y> 2 * r;1 ■
appointed an Assistant Trust Of¬
mon
*.
ft':-..r ft."j.L#■'/■ Si f/,.• L -.V
capital stock from $2,000,000
A.
Lockwood
and
Thomas H. ficer and Raynor G. Corleis has of Wappingers Falls, Wappingers
to $2,500,000 by the sale of new
\
The .First: National
O'Brien from Assistant Cashiers to
Bank * of
been appointed Auditor, a new Falls, N. Y., with common stock of
stock, effective June 13. (Number, Shreveport, La., increased its com¬
Assistant Vice-Presidents. Mr.
$50,000, into The First National
position.
shares
outstanding ■— 25,000 mon
Bank
of
Poughkeepsie,
Pough- of
Lockwood is with the Petroleum
S:
capital stock from $3,250,000
ft
*
to $3,375,000 by a stock dividend,
keepsie, N. Y., with common stock shares, par value $100.)
Department and Mr. O'Brien the
Charles
D.
..' ft
ft V'-- ft
Deyo was elected
effective June 12.
Public Utility Department of the
of $924,000.
(Number of
The merger was elSenior Vice President of the Co¬
The First National Bank of Ma¬ shares outstanding—270,000
National Division.
fected under the charter and title
shares,
lonial Trust Co., New York.
w ' ■" " **
** ' v*
'
of The
First National Bank of rion, Iowa, increased its common par value $12.50.)"
s
*
*
* ".
Vv
v:..v
ft-*
ft
capital stock from $50,000 to $200,Poughkeepsie.
Clarence
H. Wiseley, a Vice:ft
ft *
George C. Johnson, President of
000 by a stock dividend, effective
President of the First National
By a stock dividend, the com¬
The Dime Savings Bank of Brook¬
June 11.
(Number of shares out¬ mon
City Bank of New York, died June
capital stock of the First Na¬
Nathanael V. Davis was elected
lyn, New York for .nearly 12 years,
standing—2,000 shares, par value tional Bank & Trust
22 at the age of 62. Mr. Wiseley
At the same

nounced the

'

■

■

.

.

■

'

■

-

■

,,

,

V:

Alfred

Bank

The

President

Mills,

S.

that
ap¬

S.

since

Directors of both Banks. Total re¬

of Federation Bank, as a

of the

result

transaction, will

$150,000,000. >

Trustee of the bank.

a

of

Announcement
was

ex¬

made by the

Trustees

over

At the

• -

Secretary

and

-

head.

; Mr.

weekend.

time, the Trustees

the. Brooklyn, announced the election of A. Ed¬
Bank are to be offered stock for ward Scherr, Jr., as Senior Vice
their holdings. Federation Bank President and Treasurer; Alfred
will
exchange 24 shares of its R. Marcks, as Senior Vice-Presi¬
common
stock for each share of
dent, and Thomas S. Sites, Senior
Citizens Bank capital stock. Citi¬ Vice-President and Secretary. Mr.
zens
Bank has a total of 2,500 Scherr and Mr. Marcks also are
chares

outstanding.

Stockholders

of both Federation Bank and Citi¬
zens

Bank

posal
held

will

vote

on

the pro¬

special meetings
July 13.V

to

at
on

be

of

sources

mtfe

has total re¬
than $13,000,000

and

deposits
of
approximately
$12,000,000. The Bank, was estab¬
lished 32 years ago.

Federation
whose

total

Bank

and

resources

Elected

Trust,

have

more

than doubled in the last five years
to the present level of $145,000,000

...

Senior Trustees were

as

son

on

1930

served

respectively.

Beginning his banking career as
appraiser with "The Dime" in
1917, Mr. Johnson advanced
through various positions and officerships until he became Presi¬
Oct.

on

1946.

25.

Mr. Johnson, is

a

yers

Trust

and

the

Bank

in

served

teller

a

as

.

■*

;

joined

who

the

Mr.

a

in

number

1930

of

and

official

meth¬

ment; Wilbert F. Sieckman,

planning department, and
de¬

Trust

partment.

dith

•
ft*,

'

of

stock of The First National
of
to

Bank

York,

Company,

He is

The

a

Trustee of and

East

New

York

Counsel

Savings

Bank, New York.
ft

Directors

of

officers

'ft

ft

the

to

Marcks began his Banking

Mr.
career

in

1921.

elected

Clinton

Trust

the

positions of




He

was

named

a

to

the

in

1947

Board

and

was

of Trustees

in 1953.

Mr. Sites started work with the
Bank

as

an

office boy in 1931 and

Elves,

F.

Ltd. -In

addition G.

Wittichen,

Wittichen's

Investments
Molner

Limited,was elected First VicePresident, A. M. Rutherford 2nd,
W, .C. Pitfield & Company Lim¬
its Board of Directors, and The ited, Vice-President, A. M. McFirst
National
Bank of Denver Nabb, Secretary-Treasurer.
3
and its Board of Directors, acting
into

entered

12,

June

dated

Hemphill, Noyes Adds,

of

"Agreeemnt

an

Consolidation":

:

"

--

(Special to The Ein vnciai, Cuhonicle)

International / LOS ANGELES, Cal.—William

The

1958,

whereby

Trust
would

Company of Denver, Colo.,
be consolidated with The
National

Bank

Denver

of

Brown has been added to

the staff

of

Co.,

Hemphill, -Noyes

West Sixth Street.

~

&

510
:

'i

»

Stoddard

tional

in

banking

joined First Na¬ under the charter and name of
30 years of The First National Bank of Denver.
trust experience at
Special meetings of the share¬
after

1955

and

Bank

and Colonial Trust Company, New

Company and of the shareholders
of - The
First National Bank of

With

Corn

Exchange

York.
*

*

*

So¬

Fund

Philadelphia,
Pa.,
elected
John. S. McGowin Vice-President
and Personnel Officer.
ft

ft

Frederic A. Pots, President, The

tion of four Vice-Presidents, to be¬

effective

the

at

close

of

new

William

Vice-Presidents

Bates,

covering

group

Southeastern

states:

G.

Jr.,

head

and

are

of Ahe

New Jersey,

Morris

held

1958,

on

consider

to

matter.

!

1

ftr^e

converted into

v

this

South Lake Avenue.

:

and

Gallagher-Roach Adds
(Special to The Financial

outstanding
National

of

stock

Bank

of

the

presently
The

of

bank,

First

Denver will

Cfhonicle)

shares

but each

will

shareholder

be
en¬

fractional share will

titled to

a

scrip

re¬

certificate expiring
as of a fixed
date evidencing the
right to such fractional shares,
a

from Assistant Cashiers to

Assis¬

They

are

which has not been
will

be

sold

and

so

the

unexchanged scrip certificates.
The capital of the consolidated

In addition, four men have been
appointed Assistant Cashiers. They

rata

bank

to

will

then

the

be

R. J. Arnold

branch

office

Street

under

Richard

holders

$7,500,000,

Harry C.
affiliated

Branch

at

Spring
direction
of

166 East

the-

Arnold.

Pressprich Branch

ALBANY, N. Y.—R. W. Press¬

prich & Co. has opened a branch
office at 75 State Street, under
the

management

of

Robert

E.

Fallon.

With Eastman Dillon
(Special to The Financial

LOS ANGELES,

of

Chronicle)

Calif.

—

John

joined the staff of
Eastman Dillon, Union. Securities
G.

x-

repre¬

J.

R. W.

be distributed

then

become

SOMMERVILLE, N. J.—Richard
J.
Arnold
& Co. has opened a

exchanged

foreign depart¬
ment, and Alan Resendorph, Hat-

pro

pany,

proceeds of

such sale will

Frederic Heldring,

has

Gallagher-Roach & Com¬
16 East Broad Street.

with

2.505 shares of the

fractional

No

Johnson

—

be

stock of the consolidated bank.

issued,

COLUMBUS, Ohio

3.689 shares of the

share

each

;

;

consolidated

the

of

stock

ceive

South-Cen\r
Dorrance,

Vice-Presidents.

PASADENA,; Calif.—Ronald G.

V Each share of the presently out¬
standing
stock
of
The
Inter¬
Trust Company will be

converted into

business, June 30th.
The

22,

July

\

Rose, is now affiliated with Re¬
Tuesday, public Securities Company, 252

national

ft

Philadelphia National Bank, Phil¬

come

will be

Denver

Saving

Philadelphia

RepubKc Sees.

(Special to The Financial Chronicle;

holders of The International Trust

tant

succeeds F.
Gordon Elves

Nanton-'Limited,

Comptroller of the Currency—The
International Trust Company and

boro office.

Vice-President

Company, New York have elected
three

•

Mr. Mere¬

year.

The

of

final. approval

the

ensuing

Gordon

thereafter subject

and

Denver

announces
Mere¬

of Thomas W.

President of the Exchange

the

&

two-thirds* of. the

of

and

pany

for

as

by

Trust Com¬

International

The

,

.

election

the dith, who is Manager of the Cal¬
the stock gary Branch of Osier, Hammond

two-third of

of

holders

•
ft..

ft

ratification

to

Subject

Exchange

Stock

gary

the

capacities until his election in 1952 Philadelphia commercial divisio
as
Vice-President and Secretary. Robert H. Potts, in charge of t
elected a member of the Board of
and full shares will be issued in
Mr.
Scherr was employed
by bank's five offices in the Nort
Directors
of
Commercial
State
for
the surrender of
"The Dime" in 1931 and held the east section of Philadelphia; and exchange
Rank & Trust Company of New
position
of Assistant Treasurer Robert M. Williams, commercjal scrip certificates aggregating a full
York, it was announced June 20
share or shares. This right of ex¬
from 1932 until 1946, when he be¬
division, in charge of the Band's
by D. Mallory Stephens, Chairman
change will expire Sept. 18, and
came
Vice-President and Treas¬ mortgage department.
of the Board, and Jacob LeichtThe announcement" ~al5tT~ stated the portion of stock allocated for
urer.
He was elected a Trustee
man, President.
of
two officers have been promoted exchange
scrip
certificates
of the Bank in 1946.
for

Elects Officers
CALGARY, Canada—The Com¬
mittee of Management of the Cal¬

Arthur W. Fuchs of the same

First

New

Company,

Irving

Calgary Stock Exch,

discount depart¬

of the

ment; Anton Burkhartsmeier,
manager of the tabulating depart¬
ods and

(Number of shares outstand¬

of by the required majorities.\have

New York.

/

Keogh,
Congressman representing the 9th
Congressional District has been

*•

adelphia, Pa., announces the elec¬

Trustee of the

County
Trust
Company,
(before the merger), will now be Kings
serving three
of
Greater
New Brooklyn, N. Y. and a Director of
the
Savings Banks Trust
Com¬
York's
boroughs — Manhattan,
pany.
Queens and Brooklyn.
Mr.
Livesey started with the
\
The Honorable Eugene J.

•:

ciety.

an

dent

"•

t

banking and trust experience. He
was
previously with the Chase
National Bank, New York, Law¬

the

since 1929 and

have

who

Connors,

"■ Chemical

Albert Hutton and Frank F. Jack¬

Bank's Board

'

Citizens "Bank;

'

Trustees.

./

J

bank in 1954, has had 35 years

of

Stockholders

department

First National since 1953.

Bank's Board of

the

same

■■

IBM

was

Mr; Fiumefreddo has been with

.

elections

the

lie

where

Mr. Livesey was also

1952.

elected

by the Boards of

been approved

Vice-President

as

have

Company

Trust

completed. The merger, has

sources

tabulating department;

divi¬
George C. Johnson Everett J. Livesey
sion, trust department; and Harry
C. Stoddard, corporate trust di¬
has been elected to the newlyvision, trust department.'
created position of Chairman of
Mr. Merolla joined the bank in
the Board of Trustees.
He will
1955 as supervisor of its then newcontinue as Chief Executive Offi¬
ly-created IBM tabulating departs
cer.
v-;v;
ment after 19 years with the Irv¬
Succeeding him as President is ing Trust Company, New York,
Everett J. Livesey, who has served

13.

ing—8,500 shares, par value $100.)

Charles A. Udell,

The four are:
manager

division, trust department;

funds

Cashiers

Assistant

Chairman

Fiumefreddo, Jr., mutual

Charles

$750,000 to $850,000, effective June

in St. Louis

by William A. McDonnell,
of the Board.

June 20

Nickerson, President.
new Managers are:f William

J. Merolla,

today

jointly

announced

and

newly-created

Thomas L. Connors, custody

that negotiations for the merger of
Citizens Bank into the Federation
been

to the

The

Shanahan, President
of the Federation Bank and Trust
Company, New York, N. Y. and
William J. Grange, President of
the Citizens Bank of Brooklyn,

Bank

named

positions of Manager of' various
departments and divisions, it was
announced June 19 by Kingsbury

Thomas J.

Y.,

were

of

staff

the

of

Bank

National

supervisors

Savings in the

for

First

Helena, Mont., was increased from

♦

members

of Jer¬

City, N. J. has advanced four

sey

Main Office.

ceed

ft

«

*

pointed George R. Breen an As¬
sistant Comptroller of the Bank.
Mr. Breen joined the Bank in
1927 and has been Chief Clerk of
the banking department in the

N.

$100.)' '..v
♦

The First National Bank

Si

ft

ft

City of New York announces
the Board of Trustees has

»

Company of

National

•

1

>

Mr.

of

First

the

Bank of Boston.

Four

3950.
.

of

director

a

joined First National in 1918 and
was appointed a Vice President in

Carter has

fn

2115

Wilshirp

Boulevard.

Volume 187

Number 5754

.

.

The Commercial and
Financial

.

Chronicle

(2885)

Continued from first
page

creditor nation, it is
necessary that we observe the rules of
the game—which we have not
been doing. * "*• "y
/
In light of such facts as

i

these, the notion that
be found in
tinkering with the price of gold

can

rent

international

ills

and

thus

to

make

neither

it

that
financial

tinkering with the price of gold, nor
juggling py means of international institutions
to

circumvent national economic
forces,

more

than

a

temporary palliative

eigners to sell goods here in

can

at best.

of international financial

means

plain

ish indeed.

hope to

adequate amounts,

such ills

as

number of

a

our

stood

Reporter

or

so,

after interest rates had

been .withdrawn

amounts

has

of

run

of

selected Treasury

attention

in

bacher has

Mr.

some more

some

coming

fairly good-sized speculative positions

from

so-called

June

informed

sources,

against this, there

the

ramento

and office staf£

Walter

picture, along with the future hugh refunding and
raising operations of the Treasury, does' not make for

As

The
A

Government

Clatchey Newspapers, Inc.
-.
During World, War. II he servedthe Army Air Corps for Vfa
years. After leaving'the service ho
joined BercUt-Richard^ Packing

abrupt

speculation, because

such

as

Washington "Shakeout"

market that

of

the

was

sizable

on

the

amount

a

1947.

.registered representative in.
'
'
'V; ■•// ;

topheavy side with
of

authorities have evinced

recently

offered

'

Thatcher P. Luquer With

a

on

the

subject—

enough.

Reduced International Investment

in the financial

It is sometimes said that
international investment is

proceding

that hence

as it should, or as it did in
something has to be done to

earlier

not

once

did.

simple but

highly important question he has

but to take note of the
innumerable defaults and confiscations of
recent years,
and the open
are

but very

hostility toward foreign enterprises. There
few countries that have not—or their citizens

have not—defaulted in
payments

admittedly due during

the years that have
elapsed since World War I, and indeed
since World War II. It
is, moreover, hardly less than a

foregone conclusion that

even

have occurred but for
very
been regularly made.

As

going

taking place in the normal

flow of private
capital is not taking place as it
If one wishes to find the answer
to this rather

more

such defaults would

large outright gifts that have

well

are

(Special to The Financial Chronicle)

BOSTON,

.

very much
picture, and it is evident that the monetary author¬
aware
of what happened not so
long ago after a
-

"Luquer

Mass.— Thatcher P.

is

now

associated

with

Draper, Sears & Co., 50 Congress
Street, member^ of the New York:
and Boston. Stock

Exchanges. Ho
formerly manager of
the
department for Elmer
H. Bright & Co.
'

'

,

statistical

already noted, the amount of free riding which has been
in

on

the

Government

bond

market

has

reached

,

sizable

; With M. P. Giessing Co.

proportions in certain issues, especially in the 2%s of 1965 and the
3!/4S of 1985, and the 3V2S of 1990.

(Special to The Financial Chronicle)

According to reports there have

FARMINGTON, Mo.—Lucius W„

.

been big margin operations in the
Treasury market by those
have been mainly in the past in the

equity market

speculative ventures.

The easy

other

or

that

more

policy make these issues

money

Huber has been added to the staffc
of M. P.

attractive, and quotations went above the offering prices, but a
goodly number of these securities were still in weak hands. The
commercial banks

maturities

within

obligations

were

were

limited

investors, but in this
to pay

H. L. Robbins Adds

buyers of the short and intermediate term
price areas,

whereas

the

also, there

case,

prices above what

was

was

CSpecial to The Financial Chronicle)

WORCESTER, Mass.

longer-term

bought by pension funds and other institutional
considerable reluctance

Giessing & Co., 108 North

Jefferson Street.

M.

Lombardi

with
37

H.

is

Robbins

L.

—

now

Dominic*

connected

&

Co., Inc..

Mechanic Street.

considered to be attractive income

levels.

This

left

a

great

deal

of

the

Government

to be the

tions

permanent type of

were

moved

about

groups, but within

the

heavy side.

not result in

an

a

are

not the

market

With John G. Kinnard
to

considered

ones

of these obligations.

owners

rather

bond

especial to The Financial Chronicle)

traders, dealers and speculators, who

freely

fairly restricted

by

the

aforementioned

Volume

range.

Quota¬

was

not

Nonetheless, these modest price movements
important distribution of the obligations that

MINNEAPOLIS,
R.

Wagner is

Kinnard

&

now

Minn.—JameS>
with

John

Co., 80 South Eighth

Street.
on

did

were

4

There has, moreover, been an
tions—or what comes down to that

epidemic of confisca¬
no

1

strict adherence to contracts and the
honoring of agree¬
ments have become—we had. almost said
the exception
rather than the rule. Investment funds have
crossed in¬
ternational boundary lines and are still
doing so for the
simple reason that products to be had only abroad, or
most

advantageously abroad, are needed. We know of no
figures to prove it but it seems almost certain that an
exceptionally large share of the international investment
that has been taking place of late
years has it roots in the
extraction

of' minerals

for

export

and

the like.

Funds

simply do not flow freely to underdeveloped countries
any more for the development of the country's
industry
and transportation as was the case in the latter half of
the 19th century..
.

-

Of course, it is likewise true that difficulties
out of our own import restrictions

arising
greatly hamper the re¬
turn to this country of funds
required for the servicing
of investments abroad. The
ingenuity of American busi¬
ness men has been taxed and is
being taxed to find ways
and means of
bringing any substantial part of foreign
earnings home—to say nothing of capital itself. For this
there

number of reasons, but our
restrictions are
are

definitely




one

in the hands of the speculators and free riders.

matter with what

euphemism they are labeled. Behavior of this sort was
encouraged by the New Deal in the name of something
sometimes called social justice. In
many parts of the world

own

of them. If

tariff and other
we

are

to be

a

.

Draper, Sears & Co.

was-

is

likely to be performed
by artificial means now employed or proposed, such as
gifts labeled loans, or outright aid, or artificial
propping
of the prices of
goods some of these countries have to sell.
J
It is likewise well to inquire why the international

given

Heavy Speculative Positions in Some Issues

into

manner, but for that there are good
reasons, and the func¬
tions of the international flow of
capital in response to
natural economic forces are not

was

The inflation bugaboo continues to be

protracted period of easy money.

days, and
place. It

investment purposes

underdeveloped lands—is

ities

take its

is true, of
course, that international investment—that
the flow of private funds for

homes,

sharp shaking out last week when reports emanating from Wash¬
ington indicated a change in monetary policy on the
part of the
powers that be.

not

of the editor

•

securities which have not yet
found permanent

uneasiness

i
son

Co, He joined Schwabacher & Cot

,

which is natural

office,

"•

Mr. Jones is the

in

:

circles, although it must be said that Federal Reserve
no

at the Schwa-

bacher

,

in chief of all Bee papers of Mc-

new money
any

Jones, Jr.

.

1001 J Street.

ness

change in money market policies.

P.

*

far in the; busi¬

so

sales

organizations

to be those who hold the opinion that

appears

the minor betterment which has been shown

will

direct the Sac¬

sup-

improved economic conditions.

resident

manager :

;

-

of

Tho

13.

new

posedly with pipelines to the monetary authorities in
Washing¬
ton, indicate that a change in policy would appear to be under
consideration because

;•

on e a-

passed awajf

even

doing before the floating supply

*mW:i

advices

J

PhilipDaube, who

J.

in the recently introduced 2%s of 1965 and the
3V4s of 1985 have
still to be digested.
....
V"vy'< «•!
v"
The

an¬

succeeds

issues hav.e begh .moved into strong hands.

According to reports,

commentators

down to much lower

some

Senior
Schwa-*

nounced."-

vulnerability

though it will still take

gold have in point of fact

attracted

Governments

on

The Government market after
experiencing a fast and sharp
correction on heavy volume has lost some of its

apparently not under¬
by the alarmists. The fact that
during the past year

levels, substantial

Co.,

By JOHN T. CHIPPENDALE, JE.

these.
years,

Sacra-*

the

Schwabacher, 8a

E.

Our

un¬

facts

are

of

Partner Albert

)yho enjoyed more."foliowing than
understanding have
been
pointing to the large foreign holdings of short-term
obligations here by foreigners and
asking what would
happen if they, one and all, or at least a
large percentage
of them all at once
decided to convert their
holdings into
gold. The fact that any international
financing center
always holds large foreign balances of this
sort, and that
much the larger
part of them then actually in existence
were needed and
actually being used in the financing of
international transactions

of

manager

office
i

man that a higher dollar
international lending institutions

cure

resident

Inability of for¬

wayfaring

At intervals for

•V.v3

SACRAMENTO, Calif.—Waltej?
Jones, Jr., has been appointed

mento

are, of course, the basic causes of
dollar short¬
ages about which foreigners so often
complain. It should
be plain even to the

could not

P.

>

us.

more

by
fool¬

or

appears

Mgr.

For Schwabacber Co.

cures

designed
hope to be

willingness to accept goods in adequate
amounts, and in
some instances at least
the burden of
unwisely contracted
debt to

price of gold and

machinery

Jones Sacramento

J

32

No
The

been put out from the

headquarters of the monetary authorities

in the nation's capital have had
ence on

a

a

very

the money markets, with the

the tax free

that

Specialists in

Change in Monetary Policy Seems Imminent
"open mouth" operations and "trial balloons" which have

U. S.

GOVERNMENT

definitely sobering influ¬

Governments, corporates and

obligations all being adversely affected by the reports

change in monetary policy is in the making.

question but with the passage of time and

an

There is

,

'

and V

.

Y

federal agency

no

improved economic

picture, there will be modification in the monetary program of

securities

the powers that be, since the increase in the demand for loanable

funds will of itself bring about higher costs for the
borrowing of
this money. For the time

being, and1 in the opinion of not

a

few

.

>

.

».

money market specialists for a much longer period than some ex¬

pect, the business picture will be
Even

on

the defensive.

though the Federal Reserve Board Index of Industrial

Production has moved to 127 from 126, and it should continue to
advance modestly to the 129/130
area,
away

from the boom levels.

it would still be

a

long ways

Also, with unemployment still push¬

ing the five million mark and likely to continue that
some

with
.

time to come, it does not seem as

way

for

us.

.In

& Co.
INCORPORATED

addition, the Treasury has important refunding operations

to carry out as well

ment, which could

as

run

tain business pattern,

the

financing of the deficit of the Govern¬

into very sizable figures.

The still

change in monetary policy.

seem

20 BROAD STREET

.

<

NEW YORK

uncer¬

along with the large scale financial under¬

takings of the Federal Government, does not
near-term

Aubrey G. Lanston

though the boom is again

to indicate any

☆

CHICAGO

'

☆

☆

BOSTON

The Commercial and

Lefcourt Realty Corp.
Shares All Sold
of 250,000 shares
stock (par 25 cents)

Continued from page

;

,

The State of Trade and Industry

.

.

Thursday, June 26, 1958

at $2.50 per

Securities Corp.,

tunities for aluminum are

share tnrough Aetna
New York, and
Roman & Johnson, Fort Lauder¬
dale, Fla., has been completed.
The net proceeds are to be used,
together with available cash funds
Of Florida Boca Raton Housing
Association, Inc. primarily to de¬
velop a portion of the unimproved
real property owned by Boca Ra¬
Florida.
corporation was organized
in Delaware in 1927 and currently
in

ton

The

engaged in the real estate busi¬
in the City of New York. It
has contracted tp acquire all the
stock
of a
Florida corporation
known
as
Florida Boca Raton

July. It
a result
July price increase.

price boost has scrambled the steel market outlook for
had been expected that July business ^ould fall off as
heavy buying in June as a hedge against a
uncertainty of whether a price boost will come

of

ness

The

metalworking

major

the

of

disposed

portion of its assets, which were
located in New York City, and it

plans to extend its
in the

has no present

limited real estate interests

in July or
the July market despite
vacation shutdowns, concluded this trade
strengthen

could

hoWever,

lAugust,

plant

authority.

Housing Association, Inc., from
the holders of such stock in ex¬

Lefcourt

oppor¬

that much better. Aluminum workers
are due for an increase in August, but competitive conditions in
this industry may forestall a price boost.
United States Steel's statement also served notice on other
steel companies that it is no ''pushover" on price leadership,
"The Iron Age" further commented. Other producers have stated
freely that they feel prices should rise on July 1. But from a
practical standpoint, no other steel company can boost prices un¬
less the largest producer decides to go along.
Meanwhile, United States Steel's decision to hold off on a

is

change for 1,682,432 shares of Lef¬
court
common
stock. *In
1957

production is pbout. halfwqy back up to pre-recesaccordihg-fo ^Steel's'v industrial, production index. ":
During the first two week^ in Juno, it;registered 134, (194749
100). That is 13.5% above the rodession's low;t>oint reached
seven weeks
ago.
The index is based and weighted upon steel

sion levels,

—

straight month the number

For the fifth

of new business in-f

peak of 64,305

set in 1956.

This week the auto

It

-

(Special to The financial Chronicle)

Calif.—Ellis
M. Stephens has been added to the
staff of Kidder, Peabody & Co.,
SAN FRANCISCO,

Russ Building.

E. E. Nutt Opens
Chronicle)

(Special to The Financial

E.
311
in a

FILLMORE, *■ Calif.—Elwood
Nutt

has

Central

offices

opened

to

Avenue

at

engage

securities business.

Spindell Opens Office
LONG BEACH, Calif.

—

Steve

Spindell is conducting a securities
business from offices at 233 Mira
'►Mar Avenue;

>

;**

'

'

;

(Special to The Financial Chronicle)

NEW

Minn.—Joseph A.

ULM,

Solbferg is now with State Bond
&

Company, 28 North

Mortgage

Minnesota Street.

car

for, changeover to
"Ward's Automotive Reports," declared on Friday, last.
The agency counted
81,359 passenger car completions in
United States plants last week compared with 78,163 the week
before. The same week in 1957 netted 118,805 units.
The statistical agency further noted that indications are that
Buick will start winding up its 1958 model car production this
week, with the first of the Chrysler Corp. plants joining in the
shutdown beginning the third week in July. Remaining General
Motors Corp. car lines will "phase-out" the 1958 model in late
July or early August, with Ford Motor Co. following suit in
September, it added.
.
.
.
While the auto industry faces a lengthy period of plant shut¬
downs, they are being scheduled on a staggered basis, with unem¬
ployment fairly well dispersed, the weekly publication said. Buick
workers are expected to be back on the job by mid-August, or
before many Ford plants even begin their changeovers.
V \
gain stemmed from Chrysler Corp.,
operating at the May level and is ex-

week's production

Last

With State Bond & Mtge.

•

,

production
first of the in¬
1959 model assembly,

increase in United States passenger
last week was followed the present week by the

shutdowns

which thus far in June is

preparatory to the 1958

jpected to surpass its entire May volume
model phase-out.

Bellaire
Skaife &

Eight other plants worked a short week.

Detroit.

Calif.—George P.

has

joined;»the staff of
Co., 3099 Telegraph Ave.

building permits climbed in May

The total dollar volume of

monthly total on record, Dun & Bradstreet, Inc.,
reported. The total for 217 cities, including New York, amounted
to $647,007,924, up 9.7% over the $590,547,983 of April, and 15.6%
over the $560,619,567 of May 1957.
to

the highest

in New York City were

at an all-time high of
$118,626,434, for a sharp rise of 120.8% from the $53,726,893 rof
the previous month. The value was 86.4% higher than the $63,637,718 of the comparable month a year ago.
Plans filed

Steel Output Set
Pinal victory
will

over cancer

come

from

the research laboratory. But
victories today.

there

are

Many

cancers can

when

detected

treated promptly.
Is the

There

be cured

early and
VigUanc$

key to this victory
are

efgnalt

seven

which might mean cancer.

cer

victory

mean

over can*

for you.

1. Unusual

recovery,

breast

or

The past week's half-point Improvement

in the operating rate
to 64.5% of capacity is an indication of that.
Production was
about 1,730,000 net tons of steel for ingots and castings, the high¬
est of any week this year.
District rates were: St. Louis, 86%
of capacity, down 9.5 points from the previous week; Far West
at 74%, up 2 points; Chicago, 70%, up 1 point; Wheeling, 70%;
down 5 points; Detroit, 69.5%, up 1.5 points; Birmingham, 66%-,
up 5.5 points; Cincinnati, 64%, up 4 points; Mid-Atlantic, 62%,
up 2 points; Pittsburgh, 60.5%, up 3.5 points; Buffalo, 53.5%, no
change; Youngstown, 53%, up 3 points; Cleveland, 48%, up 2.5
points and New England at 39%, down 2 points.

or

Since most mills

ship

bladder

5. Hoarseness or

Change In
habits.

cough. 6. lndP»

gestion or difficulty in swallow*

ing. 7. Change in

a

require at least two weeks to

process

order, hedge buying in anticipation of higher prices

an

and

be

July will probably be the lowest production month of the
half, but it is beginning to look less ominous. As one steelput it: "I've been surprised by the number of orders that

second
man

learn If It

means cancer.

even if June hedging does not impair
July sales, but
hope that production will not drop more than 10%.

there is

are
buying only to replace. They began 1958
inventory of 3,700,000 tons and that is their inventory
today. Their sales are off about 35%. Improvements are spotty
and hedging has had no
impact, it further noted.

with

'




the

the

for

equal to about

Output for the week beginning June 23, 1958 is

62.4% of the utilization of the Jan. Vl, 1958 annual capacity of
140,742,570 net tons compared with actual production of 64.9% the
before.

week
'<■

/

'

'//■ i] /:'// 'V -

week

For the like

a

month

the rate was 97.5% and pro-»

ago

the actual weekly, production
133.8%.^^•-'/ /
/

duction 1,567,000 tons^ A. year ago;

placed at 2,150,000 tons, or

was

*Index of

i

production is based

for 1947-1949.

on

weekly production
- '

average

-Vb 7

i

Turned Lower in the Latest Week

Electric Output
'

The

the electric
ended Saturday, June 21,
estimated at 11,941,000,000 kwh., according to the Edi¬
distributed by

electric- energy

of

amount

light and power industry for the week

1958, was

Output reversed its course last week and

Electric Institute.

son

^trended lower.

-■'/./'•/"'//i:;://'''//

For the week ended June 21,

■
>••:'/-./ •." '
,
1958, output decreased by 168,-p

000,000 kwh. below that of the previous week, and 396,000,000 kwh.
under that of the comparable.-. 1957 week but showed an-increase of

463,000,000 kwh. above that-of the week ended

June 23, 1956.

Loadings in Latest Week Advanced 1.6% Above the

Car

Preceding Period but Were 16.6% Below a Year Ago
of

Loadings

freight for the week ended June
or 1.6% above the preceding week.

revenue

1958, were 9,506 cars

.

14,
.

1958, totaled 622,221
cars, a decrease of 123,901 cars, or 16.6% below the corresponding
.1957 week, and a decrease of 179,207 cars, or 22.4% below the cor
responding week in 1956. rV
, .
. ;
:

"

s

Loadings for the week ended June 14,

.

s

.

Passenger Car Output Rose 4.1%
production for the week

Automotive

-

according, to "Ward's

Automotive Reports,"

the Past Week
ended Jpne 20, 1958,
rose by 4.1% as the
for changeover to

industry prepared for-the first of its shutdowns
1959 model assemblies this.week./x» j. .:Last week's car

78,163

of 2,819
states "Ward's."
crease

with
The past week's produc¬

output totalled 81,359 units and compared

(revised) in the previous week.

tion total of cars

and trucks amounted to 98,385

units,

or an

in¬

units above that of the previous week's output,

'•1;

'

/

;

Last week's car output increased above

■/..,'

that .of the-previous

by 3,196 units "while truck/output eased rl>y 377 vehicles
during the week. In the corr^siyonding week last year 118,805 cars
and 22,279 trucks were" assembled. . a'
"
, " v

week

Last week the agency reported
in the United States."

Lumber

there were 17,026 trucks made

This compared with 17,403 in the previous

.week and 22,279 a year

agoi?-

•

:'./:•&<

.

v-

»

Shipments Were 3,9% Above Output in the y
Week Ended June 14, 1958 ;

Lumber shipments

of 485 reporting mills in the week ended

14; 1958, were 3.9% above production, according to
National Lumber Trade Barometer. In the same period new
June

the
off

,ders were ,L2% -belpw production. Unfilled orders amounted tq'
35% of stocks. Production was 5.9% above; shipments 6.5% above
and new orders were 0.2% above the previous week and 14.6%

* <'-• > *- -

below the like week "in* 1957. '

Business Failures Rise

.

-

Moderately in Latest Week.

v

>

moderately to
"290 in the week ended June 19 from 254 in the preceding week,
Dun'& Bradstreet, Inc.', reports.
This partial rebound from the
•marked drop a week ago lifted casualties considerably above the
241 last year and the 245 in 1956.
Six per cent fewer businesses
failed, however, than in pre-war 1939 when 310 occurred. ... ..
.
Commercial

-

and

industrial failures

Failures involving
from 216
year.

increased

liabilities of $5,000 or more climbed to 261
and 201 in the similar week last

in the previous week

On the other hand,, small casualties with

liabilities under
Concerns
at 30, the
/ .-r

$5,000, declined to 29 from 38 a week ago and 40 in 1957.
failing with liabilities in excess of $100,000 remained
same as in the preceding week.

Retailing casualties rose to 143 from 129, manufacturing to 58
jumped to 44 from 25. In contrast, dips

,

stocks

of

Steel

ton.

s

„l0w of ?>430>000
composite

on

iron
on

and

steel

April 30.

gross

scrap

reached

a

record

Scrap consumption fell to

tons during April.

the prime grade dropped

67

Last week,
cents to

$35

Look for the sluggish market to continue until late
summer,
this trade journal pointed out.
a

from 30 and in com^

19 from 20. Mortality exceeded last year's
and trade groups, with the most noticeable
from 1957 centered among contractors and wholesalers.

mercial service, off to
level

in

increases

an

high of 8,250,000 gross tons

%

that

*104.9%- of steel

week beginning June'23, 1958, equivalent to
1,685,000 tons of ingot and steel castings (based on average weekly
production for 1947-49) as compared with an actual rate Of *109.0%
of capacity, and 1,751,000 tonsia week ago.''/,' ' //■«/.■•'.
.
capacity

occurred in wholesaling failures, down to 26

we couldn't possibly ship
Vacations will slow steel consumption and output

next month

CANCER

SOCIETY

rate of steel companies will average

operating

the

from 50 and construction

July."

Consumers'

AMERICAN

it has been-in most recent years because

have stuck after I've made it clear that

Warehouses

two weeks, go to your doctor to

,

.

before

wart or mole#

If your signal lasts longer than

The
the

that the industrial

1, "Steel" feels it is unlikely

than

less

even

on

possibility.
Demand will soon slacken and
The downtrend may continue until August,

a

this trade weekly declared.

thickening in the

elsewhere. 3. A sore

that does not heal. 4.

bowel

leveling off after seven weeks of robust
"Steel" magazine stated on Monday last.
»

July 1 is no longer
so
will production.

bleedingor discharge;

2. A lump or

July

general economy is at a fairly low level to start with.- •
The American Iron and Steel Institute announced

This Week at 62.4% of Ingot Capacity

Steel production is

Vigilance in heeding them
could

is halfway out of the

.

adjustment were Buick-Pontiac-:
Oldsmoblie branch plants at Arlington,/ Texas and Atlanta, Ga.,
Ford Division factories at Dallas, Texas and San Jose, Calif.,

(Special to The Financial Chronicle)

BERKELEY,

economy

production index will decline enough to hit the "more recession"
mark. Chances are good the percentage decline this summer will

Idled last week for inventory

Mercury at St. Louis, Mo., and Metuchen, N. J., and De Soto in

Joins Skaife Staff

that fhe

' /:

a

September.

dustry's

mean

,

After

industry is swinging into a series of pro¬
shutdowns that will continue well into

4.1%

not

does

slump, but it does indicatethat ,the corner has been turned.
strength of this spring upturq is greater than any for which
magazine has comparable records back to 1953.. f,
-

tracted model changeover

A

output,'freight'.carloadings and auto as-!
"*l?l-wr V
-/./w '■• /
/ //

power

semblies. -V

they.

corporations were below the comparable 1957 level. In May
s
totaled 11,943, down 2.3% from the 12,220 of a year ago, but
5.4% higher than the 11,329 chartered in April,'
>,
;///
In the first five months of this year the aggregate of new
business incorporations fell 3.7% to 58,488 from the 60,759 of the
similar period last year. The level was 9.1% below the five month

New York area.

With Kidder, Peabody

electric

output,

formerly

minum, for instance, has been making inroads on what
were steel's preserves. Each time steel prices are raised, the

of common

?

.

Industrial

4

offering

The

-

Financial Chronicle

(2886)

ti

all industry

Geographically, week-to-week increases prevailed
The

generally.

only exceptions were the West North Central and West South
States.
The Middle Atlantic States reported an upturn

Central

to 103 from

92, the East North Central to 55 from 34, New England
Milder rises appeared in the South Atlantic Region,

to 20 from 11.
up

There were
suffered heavier
held steady. The
England and Middle Atlantic States accounted for the sharp-

to 30 from 27 and the Pacific, up to 54 from 52.

mixed regional trends from a year ago; five areas
business casualties, three had lower tolls and one
New

Volume

187

Number 5754

.

The Commercial and Financial
Chronicle

.

.

(2887)
est

«

increase

from last year, while the most
in the West South Central Region.

curred

marked

decline

oc¬

Continued

from

M

3

page

We

are

firmly convinced that

sonable

—

•

-

r

1

•

V

Continuing

down

Redemption Restrictions
In Utility Bonds

Number and Size
in

May; for the second month, business
failures- dipped 8% to 1,341 and their dollar
liabilities dropped
sharply by 33% to $56,000,000, the lowest volume so far this year.
Despite these declines, casualties exceeded in both number and

;

size

their totals

under

in

May last year.
'
Failures occurred at, an apparent annual rate of
listed businesses.
Up moderately from a 50 a year
.

•

.

remained

below

the

70

'

toll
'

of

111

in

S- | Fewer

in

prewar

'

1933.

retailers

1939

\

and

,

•

•

only

was

.

tl

half

-

v
-

and

the

r-

the

■'

,

States;

to

call

ums

of

.?'■ rise

concerns

failed

than

last

The

year.

New

In

position

and

Oregon and Washington boosted the
> states; New
Jersey and Florida, new postwar
;

lished.

{■

year as the balance of the

The large

cities reported twice

•

as

Pacific.

In

maturity.
I

was

"It is

our

securities,
of

X For .the

;

third

two

highs were estabsharp a rise from last

*

Company

by

week,

the

wholesale

opinion, however, that

even

short

as

this

The other
fect

The latest figure compares with
$6.20 on the similar date
or an increase of 6.9%..
y
>
Higher in wholesale cost during the week were

'

a

ago.

barley, hams, lard,
in price were flour,

wheat,

sugar, cottonseed oil, raisins

and hogs.

pense

t

be

year's
investment.

financing

corn,

Lower

lease

13105

ef¬

same

payment

of

a

Feb.

In

There vwas' another fractional
decline in the general 'com- :
X modity price level last
week, with decreases in some grains, flour,'
sugar and lard prompting the downward
movement.
On June 16 *
v
the wholesale
commodity price index, compiled by Dun & BradV street;-Inc., fell to 279.63 from 279.76 a week earlier.
It continued
v

in¬

of

as a

penalty

interest

the

level of the like week

a

A decline in

year

ago."

the

-

end

of the

A

forecast

week

of

a

wheat

and

corn

buying was curtailed at
by reports of favorable growing conditions

in many areas.

;

record

-

•

•j.
-

season,-compared with 44,400.000 for the same
period last season.
•-Wholesale volume in soybeans was close to
that of the prior'
week, but futures prices advanced slightly.
Soybeans inspected for
overseas export for the week
ended June 6 amounted to 1,450,627
bushels, compared with 1,467,755 a week earlier and
757,710 in the
comparable week a year. ago. V
■

r

.

Sugar volume

v.

raw

.

sugar

as

week

-

close

to

that

of

the

prices dipped somewhat.

ately

.

was

and prices

trading

Coffee prices declined moderwas
limited during the
noticeable declines.

lagged. '«• Cocoa
registered

preceding week, but',

buying

no

corporation

is

restricted

a

Hog receipts in Chicago fell
perceptibly during the week and
moderately under those of the similar period last
year..
:
Butcher hog buying was
sluggish at the beginning of the
week,
but. picked up at the end of the period.
Wholesalers reported a
-"slight rise in hog prices. Cattle supplies
slipped somewhat below
the six month high of the
preceding week. Buying rose somewhat
;
and prices of steers rose
moderately. A sharp reduction in Chicago
in salable supplies of lambs
helped boost, prices noticeably
during
the week, Lard
ouying sagged with prices showing appreciable,
i
declines from the prior week. ^ ~
*
■;
*
;

:

.

were

.

,

•

—

•

-

,

'

-

Doubts

•

no

one

legislation would be passed by
:"-the present
stimulated cotton buying at the
beginning of the week, but trading slackened at the
end of the
:
period. Spot cotton prices were close to those of
Exports of cotton staple during the week ended

-

week

a

earlier.

on-June 17 wereby the New York Cotton Exchange Service Bureau
at
108,000 bales compared with 93,000 in the
prior week and

estimated

-

in

112,000

the

corresponding week of last year. For the current season
through June 10 exports reached
5,059,000 bales compared with
6,796,000 last season.
'

-

;

.

-

-

.

X

Trade Volume Last Week Showed
Below
,

a

Fractional Declines

Year Age

Although extensive Father's Day, sales
promotions helped vol¬
in men's apparel rise over the
prior week, it was slightly below a year ago.
Slight year-to-year increases in purchases of
women's clothing were offset
by moderate dips in household
,

.

ume

•

-

•

goods.

Over-all

similar week

retail

last year.




trade

was

;

fractionally

less

than

in

the

3.87%.

The

debentures,

were

the

corporation.

in

connection

the

interest

with
of

previous

issue

in

the

same

Sept. 1, 1957,, due in

which re¬
a yield to the
company
from the
refunding of 4.47%. The

sulted in

refunding thus resulted

except the stock¬

of

in

a

sav¬

ing to the company's customers of

But

0.60% per year on $30
million for
35 years. This
figure amounts to

utility issues
consuming

the

$180,000

public presents an additional and
different consideration. Even

the

35

a

year or to

$6,300,000 for
period of the bonds.

year

The

original purchaser of a
though the Holding Company Act
$1*000
bond of the 1957
does not give the SEC
issue, who paid
jurisdiction

re¬

for¬

publication,'

over

a

us

utility rates, it does direct

to

protect the consuming pub¬
lic against
being required to sup¬
port unreasonable interest costs.

to

0%.'

States

/

Contrary to the national trend, sales of household
goods ex¬
ceeded those of a
year ago in Boston,
Washington and St. Louis.
The call for linens rose
most
noticeably in Boston, Buffalo and

Detroit.

Openings in Chicago and Grand Rapids attracted

than

were

with

expected.
Orders
best-sellers being case

held

close

goods,

to

those

upholstered

ding.

more

of

a

chairs

buyers

year

and

ago

bed¬

While bookings in
refrigerators, lamps and lighting equip¬
ment improved, sales of air
conditioners lagged again. There were
substantial gains from recent weeks in
purchases of floor cover¬
ings -and draperies.
Wholesalers reported an appreciable
rise in orders for boys'
clothing last week, especially sports shirts and
slacks.
Over-all volume in children's
sumer

apparel was close to that of a year
Attendance at showings of men's Fall
apparel in New York
was
at a
record level and orders for
dresses, suits and coats
matched those of a year
ago. There were
ago.

some

for

women's

summer

scattered re-orders

merchandise.

A slight decline in trading in

r'

most textile markets occurred

during the week. Despite some scattered orders for sateens and
print cloths over-all volume in cotton
gray goods dipped. There
was
a
moderate decline in bookings in
woolens, worsteds and
lightweight coating fabrics. New England
dyers and finishers
reported a slight rise in incoming orders.
-

-

Food

buyers noticeably stepped tip their purchases of fresh
fruit and vegetables last
week, while volume in frozen foods de¬
clined.
The call for canned
goods, dairy products and baked
goods

was sustained

that

any new farm
session of Congress

were

1993 and carrying an
interest rate
of 4%%. This
previous, issue had
been floated on terms

in

•

1

$30 million

not

the

a premium of
$21.46, received $5Q
■in net premium for
the trouble of

changing

his

portfolio

after

lapse of eight months—not
solace, it is submitted. I

a

bad

a

close to that

Department store sales
the

of course, that the
more sophisti¬

cated

Wednesday of last

—4

\

winter

wheat crop
discouraged flour
transactions the past week and prices fell
noticeably. Reports of
possible grasshopper damage to the
crop did not spur sales or'
prices at the end of .the week. - Commercial sales of
flour for
export totaled 57,300,000 bushels in grain
equivalent so far this

v

;

in

on a

debentures

formula, but it is far from
five year freeze
provision.. The
purpose of the issue was to

connection

—

•

upsurge

as

recognize,

••

The

of

,

holders

16,

followed

;

volume of retail trade in the
period ended
week was from
3% below to 1% higher than
a
year ago, spot
estimates collected by Dun &
Bradstreet, Inc.,
indicate.
Regional estimates varied from the
comparable 1957
levels by the
following percentages: South Atlantic States 0 to
-1-4%; New England and Mountain
1 to +
3; West North Central
and East South Central —2
to +2; Middle
Atlantic and West South
Central —3 to 4-1; East North
Central and Pacific Coast

•

each.

examples

works, out

a

The total dollar

■

on

purchases of rye and oats resulted in an
appreci; able drop in futures prices during the week. Limited commercial
supplies of wheat and corn stimulated
trading, which resulted in '
prices climbing moderately. At the
beginning of the week, stocks
of both wheat and corn in
Chicago were under a million bushels•

this all

amount dated

harm to

rule-of-thumb that the initial re¬
demption price should not exceed

;

291.30

appro¬

V
few

a

SEC

his

on

-

^noticeably under the

at

rated Aaa, and are callable
during
the first three years at
the public
offering price plus 5%. - This is
not in strict accordance
with

refunding its outstanding debt se¬
curities, the freeze provision does

announced

reasonable

mula is stated in this
the Commission has

Noticeably Under
The; 1957 Level

ex¬

with non
utility
issues, if interest rates fall while

issued under that Act
redeemable at any time

be

bids

changes its

Costs

bonds

must
on

was

intelligent

subject
Holding Company Act. Four
received, the best bid
resulting in a cost to the company

after

.Guarding Against Unreasonable

was

dated

1956, in which it
that

the

refund'

the

demption premium. While

Wholesale Commodity. Price Index
Registered Fractional
J Declines Last Week and Was

-

No.

look

us

issue

redemption would

full

a

from

pany opened bids

was

premature

of

a practical matter.
On May 5
last,
New Jersey Bell Telephone Com¬

an

institutional

an

conscience to demand
for

un¬

Louisiana Gas
S.E.C. 313).

position

which

somewhat

to the

adopted

was

and

proportion

only

of just how

felt that the most
which the investor
ought in good

officially
adopted in a Statement of
Policy
issued as
Holding Company Re¬

raw

,:r /

This

,

policy

portfolio. It

Premium

year

The index .represents the

31

to

application

vestor incurs when it

RuIe-of-Tliumb Redemption

rye, oats, beef, cocoa, eggs, potatoes and steers.
sum total of the
price per pound of '
foodstuffs and meats in general use and its
chief function
'/is to show the general trend of
food prices at the wholesale level.
j

v

(35

price

index, compiled by Dun &. Bradstreet, Inc., rose last week. The
index climbed 0.3% to
$6.(p3 on June 17 from $6.61 a week earlier.

;

case

its

that

having

hardship.

taking into consideration the

as

Arkansas

was

or

utilities

come

Let

presented with
unusual
situation

makes

This

though the period

nonredeemability is

Company

food

special

which

in

privately-owned

priate jurisdiction.

we are

unreasonable

one-fifth

utility management attitudes or
from the efforts of State
or other
Federal
agencies

certain

a

encom*?

about
the

than

can

flexibility in it
of changes in interest

reason

a

(35

case

efforts be made to
keep
desirable feature out of

country.; Chicago, Detroit, Newark and

successive

ex¬

4J/2%

a

Generally, we propose
formula—which,

rates—until

programs.".

■

For

offered to

amount of built-in

in

cases

three years, should not be
resorted
to as a means of
reducing the cost
of
money, and we shall in the
future insist that all
reasonable

<

'

,

are

might add, actually has

nonredeemable features in senior

Wholesale Food Price Index Continued Its
Upward
-vV
X Climb Last Week

;

rate.

to adhere to this

S.E.C. 321, 326) it was stated that:
■

Seattle suffered considerable increases.

'

interest

thereafter be reduced pro rata to

1953, this
clearly set forth. For

Electric

gan

previous May came principally from Massachusetts
Connecticut, the Middle Atlantic from New Jersey and New
York, while Illinois and Wisconsin lifted the East North Central

j total

or

example, in the Indiana & Michi¬

England

the

over

issues

possibility
lower
interest

at

two

•

and

r

bond

reasonable

any

refunding

rates.

mortality exceeded May a year ago in all functions
Service failures, mostly in business and
repair
enterprises, climbed about a third above 1957. v

their

for redemption premi¬
which are so
high as to pre¬

clude

leather

more

the

Holding

privately-owned gas utility com¬
panies, and does not cover other
types of utilities at all. Con¬
sequently, for the large segment
of the utility
industry not subject
to our
jurisdiction, this protection

price

redemption
price may not exceed 105
and
the
5V2
point
premium
must

providing

In eight of nine.
geographic regions, tolls declined between 7
April and May, but in all save the South Central and Mountain 1

•

offering

electric

coupon, the initial

plus

with indenture provi¬
restricting the ability of util¬

ities
.

except wholesaling.

•

public

the public at 101 and bear

sions

,

^

Business

v

initial

ample, if the bonds

-

f service

the

of

are

The

however,

Act.

only

assets

,

industry's total dipped appreciably. But monthto-month increases prevailed in
machinery, transportation equipment and printing.
"
;
;

;

the

of

concerned

10,000
this rate

succumbed than in any other month this year. 'Tolls dipped in all trades
except the automotive group and ;
drug stores where new postwar highs were reached. In manufacturing, food industry casualties were the lowest in 20 months >
-

consent

mandate, the Commission has been

55 per
ago,

the

SEC is required before bonds may
be issued. In accordance with this

'

"

-'

which

Company
passes

less

rea-<

redemption provisions

essential to that end.

rBusiness Failures in May Declined Both in

35

Federal

on

a

of the

preceding week.

country-wide basis

as

have

long-term
the

continuous

investing

and

merely

additive

•amount

•will

of

earn

the

gain of 1% was recorded.
14, 1958, a decrease of 2%

For
was

reported below that of 1957.
Retail

trade sales volume in New York
City the past week
estimated by trade observers to be about even to
2% above
the like week a year ago.
was

was

reported, failed to be

a

serious deterrent

to shoppers the past week.

According to the Federal Reserve Board's index, department
City for the weekly period ended June 14,

store sales in New York
1958 advanced 3%

above that of the like period last year.

In the
For the

preceding week, June 7, 1958, a gain of 2% was reported.
14, 1958, an increase of 2% was reported.
For the period Jan. 1, 1958 to June
14, 1958 an increase of 1% was
registered above that of the corresponding period in 1957.
four weeks ended June

of years

of the

Two New England
Cases
Another example of
what I have
in mind is found
right here iii
New England. You
will recall that
when the New

England

System

formed

the

off

pay
two

in

necessary

to

some

principal

amount

favorable

a

Merri¬

Company iii

existing bonds of
the constituent
companies

of

$8,750,000, which
in

Electric

now

mack-Essex Electric
1957, it was found

interest

rates

aggregating

had been floated

market

and
of 2%% and

bore

respectively.
The new
compiany
was obliged to
pay 5p/8% on the

new

bonds,

which

to SEC approval and
our

rules,

had

competitive

just

about

were

put

up for
However*

bidding.,'
six

subject

which* under

been

months

later*

on

May 15, 1958, there being no bar
to
refunding* Merrimack-Essex
able ta refund these
bonds at
call price of 107.40
with an issue

was
a

bearing

a coupon rate of

4Vz% and

interest cost of
4.40%, netting
the
company a saving of some 73

all

Cool weather, it

issue for the

new

Cites

four weeks ended June
the period Jan. 1, 1958

a

being

reduced
income they

issue.

basis points, or
$146,000 a year.

June

as

the

an

taken from

Reserve

to

of

theif

additional

$50
to

remaining period
old

this

interest

on

problem

reinvesting

moneys,
regard
compensation
of

Board's index for the week ended June 14,
1958, declined 1% below the like period last year. In the preced¬
ing week, June 7, 1958, an increase of 1% was reported. For the

14, 1958,

investors* .wM

an

aggregate

Our staff has made

electric, gas
utility refunding

a

and

of

study of
telephone
offered

issues

publicly for the five years from
Jan. lr 1950 to
May 15, 1958. This
tabulation

covers

49

of

such

is¬

nearly all of which refunded

sues,

issues floated less than five
years

before,
some

sulted

the

and

all

immaterial
in

which,

with

exceptions,

substantial

utility

The total

of

savings

companies

re¬

to

involved.

principal amount of the

Continued

on

page

36

The Commercial and Financial Chronicle
36

not so

investor interest than those
,

.

.

.

Thursday, June 26,

1958

(2888)

Continued jrom page

35

limited.

Redemption Restrictions
In Utility Bonds
about $87!
large
number of such issues in 1954 and
1955, a period during which as
we
find by reference to Table I
interest rates were at a fairly rea¬
sonable level, there were no re¬
funding issues (except for Merri¬
mack-Essex, a special situation)
ifom Aug. 18, 1955 when money
costs began to climb to April 14,
1958, when such costs had very
definitely eased off. The average
Issues

refunded

million.

was

While there were a

free to

refund these bonds at

If

3%.

around

economic system, and

that

have been necessary

that one of

principal functions is to expediate the free flow of capital
within the framework of the law.
We realize that conditions change
cies which

this
argument,
it would

to pay a few

points redemption premium, such
a
refunding would have resulted

economic

quite sound in one
situation may in time
are

unduly repressive

become

strictive

re-

or

influ-

various factors

as

the economy.

ence

it

that poli-

the years go by, and

as

assume

we

figure for the sake of
and also assume that

we

our

time, it could have done so at a
cost of debt money of somewhere

Consequently,
important that we review

seems

continually

policies

our

certainly, the difference is so
slight as to indicate that a relalively small decline in interest
costs during the period of the
freeze, once the initial redemption
premium is discounted, would resuit in prejudice to the company
floating such an issue. The only
conclusion to which we can arrive
from
this
admittedly
sketchy
sampling is that the inclusion of
a provision against bond redemption, at least- for the five-year
period which is the current fashion, has no visible effect on the

an

on

interest savings to the overall basis, and with some parcompany of well over $1,000,000 ticularity when the occasion seems
to demand. Accordingly, our staff
a year from 1941 until the original
maturity of the first issue and has made<another and more curover
$500,000 a year thereafter rent analysis of actual market
interest savings per year, before
until the maturity of the second operations recently to see whether
expenses,
resulting from these
and 1957,
issue. I am certain that any State our findings1 in ^1956
refundings amounted to one-half
Commission in the area would under one situation as regards the
of one percent or an aggregate of
have been very pleased to have, available supply and cost of capiover $4.3
million, surely not an
tal, are still valid in 1958, under
seen the New England Company's
inconsiderable item in the total
annual
expenses
diminished by another and rather different situaannual cost of utility services to
this amount. This would seem to tion.
the American public. This study,
be a fairly good object lesson in
Before I go into any detail, let
of course, covers only one period
the disadvantages to the utility in me remind you of the difficulties
of changing interest rates. There
have been other times when the permitting itself to be argued into inherent in a study of this nature.
inserting any provision of /this As any elementary textbook on
rome tendency to float refunding
nature into
the indenture.
financing will point out, there are
issues has been a prominent factor
very many factors which influence
the financial market, notably
Complaints Raised
the market price of securities, and
during the first three years fol¬
Shortly after the SEC adopted a redemption restriction is only
lowing World War II.
'
the Statement of Policy to which one among many possibilities. No
One interesting observation is
I have referred, we began to re¬ two bond issues are exactly alike,
.that the first company to take ad¬
ceive
complaints
from various even though they may enjoy ideavantage of the recent easing of utilities whose issues were subject
tical ratings, be in the same prinInterest rates was the New Eng¬
to its jurisdiction, that investment
cipal amounts, bear the same maland Telephone & Telegraph Com¬
bankers were putting pressure on turities and be identical in every
pany which refunded on April 14, them to
apply for a modification other
mechanical
respect.
The
1958, an issue of $35 million of of this
policy. Not caring to trust investor may still find differences
4.9A% bonds dated Jan. 1, 1957,
entirely to our own judgment, we in the coverage, the character of
out of the proceeds of an issue of
thereupon consulted a couple of the management or the economy
4% bonds, resulting in an annual
other and possibly more learned of the territory served which will
roving in interest to the utility
governmental agencies to see if infiuence him in deciding how
of 0.47%, which equates to $164,there were some factor we had much interest he will demand on
!>00 a year. It is disconcerting to
overlooked.
These agencies con¬ his
money, i. e., how much he will
observe
at this point, however,
firmed our analysis of the situa¬
pay for the security or, for that
that, in spite of the economies tion and all
finally agreed that it matter whether he will buy it at
anade possibly by the call provi¬
was very desirable to have com¬
all. It is, I repeat, extremely difsions of the 1957 issue, the 1958
plete flexibility in the contractual ficult to isolate any given factor
issue, foir some 'reason, is not
arrangements
for debt
capital, and say with any assurance at all
/refundable for five years.
including the redemption of debt that that particular factor has
This last observation is doubly capital, and that provisions re¬ had
any
weight at all, and a
^noteworthy in view of the experi¬ stricting refundability were unde¬ fortiori that it has had an influence
of this particular company sirable and unnecessary, provided: ence which is measurable.
Conin

gross

provision has on the acin the market place of
This question divides
itself into two subsidiary questions, td-wit, does it have any
effect on the number of underwriters willing to bid for the issue
and, secondly, does it facilitate
the retailing of the issue by the
selling group?

such

non-callable bonds.

"with

During

the bonds.

4I6N-6IAI!

BOMB

occasioned

was

not thereby
on

marketing the securities.
At

that

time,

reviewed the
reaction

to

the

Commission

evidence of market

securities

the

that

carrying

in£ competitive bidding is inapplicable, and there is no assurance
that the cost of money so arrived
at is the normal market. From
this point of view as well, our
studies indicate that the presence
of a freeze provision is given
little, if any, weight by the underwriters when the chips are down

o*.

ur,

a

Here
the

it

the

affected

by
as

tent this latter percentage figure
would be affected by having a
larger sample of non-refundables
is, naturally, entirely conjectural.

the

31, .1958.

there
gas

factors

of

some

under

which

68

were

were

«i991S

«

'«««»

"

re-

non-refund-

aggregated $1,221 billion

®
m

ft™*"*

hardly be maintained' that

can

which

issues

88

definitive

"

prin-

or

at

least

haps

some

would

feasible

cost

of

between

money

sues

and

for

sues.

In

five

mr

the

of

these

and

local

2£-26

or more;

corporate bonds
callable) 10 years

government bonds (consisting only of general

obligations bonds) 20 years.




is-

instances,
a

lower

a

and

per-

proof

opposite,

issues included

^

presented in the

following"table.'
Number of Bond

Issues
Non-

Refundables

State

that

the

or

presence

money

non-refundable

is

being

currently -under

re¬

spe-

conthe

auspices of the Wharton School of
Finance
Pines is

Commerce

and

University
a

I

am

of

of

Pennsylvania.

the

Mr.

member of the commit-

given to understand that it

substantially wider ground

covers

than

our own,

and is expected to

be completed this
I

will

show

when
-

indeed

-

be

results

completed,
surprised if

which

are

I
it

sub¬

12

stantially inconsistent with what
I

-

10

||vc
bids

5

Eight

bids

have

pointed out here.

Having

12

seven

1

Totals

Although

20

bids

Four bids

year.

study is still in progress, and
no
knowledge of what it

have

produces

6

Throe

I

borne

think you

are

with

me

so

far,

entitled to know

why, aside from considerations of
68

20

and

Considering the various other factors observable in the data, this
ratio seems extremely close, and
does not appear to furnish any
basis
for
concluding
that
the
presence of a freeze provision on
refundability necessarily. carries

study which

would

of bids in the above table on re-

of

cial

ducted

2

issues,

the

cost

impose excessive terms on
demption is the subject of a

refundables
—*—....

The weighted average number

with

yearsj

data

The subject of the effect of indenture provisions which delay or

the

in
eight of them, the advantage lay
average

or

average

for refundable isnon-refundable

the refundable issues had

are:

these

might be considered suf- tee which is conducting this study,

not

strong conclusions, it is still in¬
teresting to note that an analysis
by months and by ratings shows
13 instances where a comparison
is

perhaps

ficient to shift the burden of

$676

that
such
limited
justify any very

Admitting

even

evidence

in the study are
data

appeared

wholly adequate basis for drawing
any
very
emphatic conclusions.
Nevertheless, such statistics are

million.

:

cur-

sufficient sample,

a

tQ one who maintains the
«

refundable issues aggregated

!

the

absence will tend to cancel

0ut if there is

a

placed on
competitive

issues

fundable and 20

,

as

Dunn!oth.ls
during the study period constitute
88 electric

were

utility

market

yields are based on figures for same day of each week.

ex-

to investors, its timing in However, we cannot deduce from

it

bidding,

(2) Average terms of bonds
U.S. Government bonds (due

is

To what

rent market conditions, the number of issues expected to appear
in the near future, the current

was

and

(1) Corporate and U.S. Government bond yields are based on

suc-

considerations

relevant

that

riod

bond

were

cessfully marketed.

quality of the issue, its size,
the

ence or

March

weekly average of daily figuresj State and local government

non-refundable: issues

on

the appeal for other reasons of

pare only issues floated since
time
The cut-off date used

Jtoteo;

that

obvious

is

bids

particular issue

only to May, 1957, as I have
observed, it is reasonable to com-

1.99

conversely, in which not more
5% of the issue goes onto

than

absence of a freeze has any
especial significance, let alone a
controlling influence, upon the
inventory of the underwriters and success of the offering irr any par¬
many other factors. Notwithstand- ticular case, and we are compelled
limited.
Since the more general
ing these variables, it seems Tea- to answer the second of our subuse of the freeze
provisions dates sonable to assume that their pres- questions also in the negative.»
back

1.19

or,

received

of

terms of such

study to which I have
self unable to conclude that such referred, which was carried on at
the Commission's suggestion by
securities were either substantially
Mr. J. Arnold Pines of our staffs
less, expensive or attracted more
ted. data were, naturally, quite

YIEIBS

again,

number

ASSUe

i

Study Made

the

been sold at the syndicate price,

the shelves for sale without syndicate support. Of the 68 refundable issues included in our
sample, 79.4% were successful according to this definition. In terms
Gf principal amount, 78.2% of
and
it is necessary to decide these issues were successful. By
whether or not to place a bid for the same definition, 80% in man¬
an issue.
ber and 88.3% in amount of the

such

predisposed,
even
by
some
purely visceral reaction, to take a
contrary view.
comparative

gree

-

,

transaction from the utility and bonds,
the public point of view. If there
are no bidders, of course, the isImiiie fcuccessiul Placement
sue never gets off the ground. Ill
As a matter of definition, I
there is only one bidder or it there think we are justified in regarding
is what might be considered an as a successful placement any ofinadequate number oi
bidders, fering of which, at the termination
then the basic reason for requirthe syndicate, at least 95% has

a

In

Consequently, we arc
come to the second subquestion I
have posed: does the investing

nf

«„

Underwriters

affect the attitude of anyone who

a

redemption freeze, and found it¬

into the underwriting

and

Effejf «n Nu.mber ol

will

evidence

-

is

restrictive effect

a

doubtful

field
field,
forced to

going out of the investment

public buy with a satisfactory deoi eagerness utility bonds
which may be refunded at any
The importance of the first of time, or are such bonds as a rule
these questions lies in the neccs- "sticky" and apt to remain for
sity for having a free wholesale unsatisfactory p e r i o d s on the
market for utility bonds, a neces- dealers' shelves? With the same
sity which was pointed up in the caveats expressed previously as to
evidence presented in the Pecora the adequacy of the data and as to
investigation of the early 1930's, the presence of other unrelated
and which underlies and forms the influences, our studies show no
basis, in any aspect of the matter, visible effect of such a provision
for evaluating even a negotiated on the marketability of utility
;

(1) that the cost of the issue to sequently, no matter what concluutility was not thereby unduly sion may be reached in a survey
of
this
increased; and
nature, it is extremely
that there

a

ceptance

the

(2)

g

cannot stop
with the bonds in the hands ol
the underwriters. It may be that
the underwriters had their own
reasons
not connected with the
merits for placing bids on such
issues.
The underwriters, let it
be clearly understood, are in business to make a profit, and they
cannot realize a profit unless the
securities they purchase are successfully placed with the public,
In this, they are no different from
any wholesalers, or, in a selling
group, from any retailers. Securities in inventory do nothing but
tie up the underwriters' working
capital. If their capital could not
be used to better advantage than
to collect accruing interest, there
would be little to be gained by
As we view it, we

of
of

There remains the question
the effect which the inclusion

facie, in the

Finds Little -Aircct on Keta

cost of money to the issuer.

,

the year 1941 the New England
Telephone & Telegraph Company
liad, as a part of its capital struc¬
ture, two series of outstanding
"bonds, a 5% issue dated June 1,
1922 in the amount of $35 million,
due in 1952, but not callable until
J949, and another issue of 41/a%
bonds dated May 1, 1926 in the
amount of $40 million, due in 1961
but not callable until May 1, 1958.
Jn 1941, the 5s of 1952 sold at a
Siigh of 127%, and 41/-»s of 1961
131 *4 r If the company had been

tion is, at least prima
negative.

with it any advantage to the isin the cost of money. Most

suer

at the Securities
and Exchange Commission like to
feel that we are part of a dynamic
However,

self-justification,

J

am.,

placing

+^5?^ figures before you, in par-

lACUiarfundable issues vvas 4.34, and on
qj General interest
non-refundables it was 4.10. The
.
median number of bids for each
I began this discussion by pointgroup was the same, i. e., 4. We ing out the limited jurisdiction of

have been compelled by these the Securities and Exchange Comstatistics to conclude that the mission over this question, and the
answer to the first of our ques- broader jurisdiction of the State

Volume

187

Number. 5754

The Commercial and

Financial Chronicle

(2889)
Commissions.

We

believe

that

it

is to the advantage of the general
public that any tendency of the
financial community further to in¬
sist

be

indenture

such

upon

sions

discouraged.

It

Continued from first page

presented have been developed in
area in which the refundables
outnumbered the non-refundables

In prosperous

Speed the Upturn?

three to

over

two

of

to

whole,

terms

principal

issues

do

not,

two

the

on

particularly

statistical

results

be

measure

the

due

dis¬

in

may

to

the fact

that institutional

investors, under
circumstances, have not al¬

such

had at any particular time
completely free choice—assum¬

ways
a

ing they have wished to invest in
public utility bonds—in the com¬
mitment of their funds for invest¬
ment as between refundables and
non-refundables.

hand, if the prac¬
tice of including a five-year freeze

refundability

much

more

is,

now

so

the

number

it

and

only

dollar

a
the total number and

amount
are

of

all

bond

issues

marketed,L then

a

freer choice than

they

fin the commitment
for ^investment* as

have

now

of their funds

between

■

the

two

types of issues. The- result
might very possibly .be-/that re¬
fundable issues would then
a

disadvantage vis-a-vis the

refundables from the
of the relative chances

be

standpoint
of

success

;or failure in the public distribu¬
tion, the number of bids received
'and

the

cost

vestments

put

prime

of money

bank

to the is¬

presenting this situation,
therefore, to regulatory officials
of the States.
I know that
they
are
interested in protecting the
under

their

jurisdiction

from being compelled to conform
to financial policies which would
be expensive to the utilities and
to

their

customers.

If

the

State

Commissions will join the Securi¬
ties and Exchange Commission in

insisting

that

investors

be

the

institutional

reasonable

in

their

demands upon the issuers of util¬

ity bonds, all of us who are
charged with the duty of protect¬
ing the public can more effec¬
tively
perform
our ;
respective
duties.

I

am

suggesting

a

sub¬

stantial degree of collaboration in
this field between the Securities
and

Exchange Commission and
the State Commissions
generally,
the

and

sions

New

in

England

particular,

16%

recently

long-term

hilt
have

Commis¬

leading

to

of

together,

This

if

we

we may

is

another

don't

hang

hang separately.

deposits
supply

banks'•have

and

economic

new

customers.
to

place

than

$70

Government

advertisement in

demand

in

in

inventories

in

snort

red

efforts.

rivals

are

hands

of

rise

of

of

burdensome.

inventories

to

The

sales

rising in some lines.
ising m
»iri

durables,; what

sumer

.

these

can

businesses do about it?
Better Promotion and Innovation

The
tween

can

of

re-examination

promotion

of

sales

at

erally

efforts

is always in
period is gen¬
time to increase

good

a

sales

and

closer cheek

A

on

specific

pin-pointed

to

responses

expendi¬
adver-

ing an(j nin-pointed sales effort
and
ana

outlays
outlays

reveal
xevcai

may
may

service

the
uiu

in-w

eleotric
electric

needs.
wash
wasn

.

and two dozen electric

1930's,

machines
macmnes,

me

ao

,

nn r*t

and

.

,

vne

^c

..

just to keep all this equipment

rabies, designed to endure longer
without
expensive
repairs
and

ueame.

products are in various
stages of development, and often
it is possible to accelerate their
demand

for

approach
save

n and

This^

as

over_

turn_ permits

levels

and

to

be

recruited

manpower

institute

New

programs.

with

re-

talent
dis-

more

Getting

the
right
place often is

in

the right
important than

salary rate

wage or
is

reassess

what

may

the

be. There

vast difference between
wage

a

rates and

what

£lant' ,The s.ituati™
Red ink

critical.

was

sight,

in

survival depended on cost reduction< with nearly m fewer em_

ployeees than at the start
year

in

alld
c0st

at

than in

the

of

the company produced

1957

more

tge

previous year
i
substantially lower unit

a

in ,a c0n>ri.ncinS waY that repair
an(J servulcl»g bllls chow b.e lower
urui
nprhnna
that, this

Pnuinment

And the entire reduction

was

acc0mplished through natural attrition without

needs

fhW«

},
.

®

.

th

Thus

need

these

to

r

A

rise

a

in

income

by

This

rise

a

is

always a
else, unless
productivity

someone

in

'economic

obvious

lesson

needs to be told and retold

ajmirt

a"d again. In the last artide

writby Lord Keynes (the most irifluential economist of our generaten

tion) and published posthumously
in 1946, he said that he believed
that the United States

becom-

was

ing

a high.cost economy. We
may
expect businessmen to do their
share to prevent this from
coming
to pass,

An

increasing number

of

corn-

panies

have been seeking
longterm labor contracts as a
desirable

bargaining objective.
employers
no

the

face

costs

with

possibility of modification. In
building industry, five-year

contracts

signed

were

number

a

Now, these

rising

of

in

1957

communities

at

in

the

height of the construction boom,
which

provided

for

cases) for each "of

row.

lion

\n

increases

fringes, in

igss

workers

many

fTvevearsTna

mil!

three orfour
will

receive

termined

nrede-

regard-

legs Qf the

dlmand foflabor

at

when

a

time

labor is

The

the

and

demand

for

restraining
i»uduuug

inin

falling off.

proble*

f
Ration is
,i

in

cases)

0f
-

accentuated, as the President said in this year's Economic

Report, by:

.

the exuberance,

.

prices."

it

affected

their

during

good

Since our economy is highly
dynamic, and since this involves
persistent change, company-bycompany, industry - by - industry,

plant used the management newsje(^er> employee publications, 42

whole,

bulletin boards, 21 letters to

tracts which provide for steadily

•'

_

_/.

em-

the

economy

long-term

costs—whether

Labor Costs

industries

is

as

a

con-

which puts itself

on

a

rising

can

What haPPens in collective barkey

for

entering

t,a+

not

in

even

,

communications

w^k^in^reducing^

or

and

pany

Employee

gaining

Operate at substantially less
iupeiate at suostantiany less

facts and
strike occurs, then
any increased offer merely puts a
premium on future strikes,
and

Payees what was happening; telltliem wby; telling them how

renlaee

industries

after

and full

times in making commitments that
assume continual inflation in

sel^ m°st are just the

mnsnmprc

that

made

was employee communications
ajmed at these goals: telling em-

recently said that
'^onaon) recently saia xnat it is w?rk.in reaucing costs-wnettier
it is
business is affected by recession

rLondont

unfortunate that the things mdus-

learn

is

even imnrudence. of some individeven imprudence, of some individuals and businesses

sentatives

durables, The Economist

offer

listening, review

a layoff.
layoff.
Key to the plant's achievement

speaking
Speaking of IndusMal plant and '
consumer

final

a

wages (and

-

be done is illustrated

™.etal

a

was

labor costs.

can

interests; telling
servicing, would have a strong them
what they could do about it,
sales appeal—particularly
if the and
getting their own ideas. The
retailer can clearly demonstrate

suggest

resisted
refritoe:r^ors^an^decline

when

typical household lias be-

maintenance

Even in

new

introduction

more

one

w% of

crimination.

re-

punn

Diuktu*-te

research may

and

need

all

the

m
in operation and a heavy
investment in durable goods, inin
inmil Awinkil
Tie
icf
eluding automobiles. Its resistance
to new purchases may be due, in
rinintf
rpnnir
many
cases,
to
V®.
* 1

and

order. A slack sales

encourage

Management must
careful

offset

op-

accompanying
debt, the con-

be induced to

them

portunities to

more

the

/ilnrlinrt

>

A

to

in silence.

rise in cost to

company to penetrate new markets and stimulate sales.
Slack periods also provide

of

motors

X

others

make

prjce reductions which enable the

can

and servicing.

still

If
IC our economy is well stocked
is
1_
vxi!
/4
with productive capacity and con-

as

head costs_

on

efficiently at less
cost and involves less maintenance

ratios

are

and

every

report
involving

to

by

manufacturers

still

enabled

training

condition

consumer

too,

operates

(mostly
durables) have been reduced, but
are

of

mU(,h

quickly
to stay in

sales

campaigns

different lines

have

Further-

in

companies

such

durables is traceable to
and

insol-

even

many

must

decline

well-stocked

consumer

the

in

ments

when

and

teve bee" thoo«ilt tn"

Numerous
that

man

and

ink

recommendations, many, savings
be implemented which a year

/

the

red

can

ink,

So, such sales efforts

While

cost-cutting

cgrrying out a vigorous costcutting
and
waste-elimination
program. By establishing manage-

time.

ter, particularly sometmng wnicn
inventories

pubr
v
leaders, plus the needed political activity which will make it no
longer "good politics" for governgovernlie

producing bet-

in

unemployment and the deck ne
Excessive

they are fully offset
tivity improvements.

?ati°n can be attuned to cooperate issues,

Consumer Durables

inGNP.

of

profaun^ and consumers. Massive
c0Jce:rn t° all businesses,
workers

petition (exising or new) is in an
^celTent PO^ on 10 saw off that
excellent position
uxi mat
limb.
Summary
Monetary and fiscal policy are
favorable to recovery, but

now

recoverv

wU1

depend

primarily

what American industry does,
vigorous and mnm sViiiful
more skillful
sales and promotion efforts and
More

than lull capacity,
wage settlements have become a
(2) Accelerate modernization roadbi0ck to
recovery. With large
accelerated introduction of ne\y
financial and emphasize, particularly, costwage increases facing
the steel,
strength of the business. Reces- savings, both for business and the aluminum, electrical, and other products which provide good val¬
existing lines threatens to decline,
all

of

these

take

account

sion is

efforts

4

must

a

of

the

testing period. Dissipation
will not strengthen
an
enterprise. The first responsibility of any company is t*>
resources

and

business, to remain solbe

to

set

to

take

ad-

as it unMeantime, anything which
company can do to move toward
more
profitable position is in

a

the

general interest

interest




a

tive effects.

plant and equipment expendi-

«

•

When

broad front could have cumula¬

tures accounts for most of the rise .sumer,

a

Park Place, New York 7

its

the

vantage oiLthe market

25

a

for

folds.

CHRONICLE

these

cutting,

indi¬

billion

over-

ter consumer values.

re-couinre-equip

marked improvement in such cost

more.

decline

old

years

more, under vigorous competition
when
one
company
makes
a

consumer

vent

FINANCIAL

facilitate

billion
The

the way for' creative

economies and for

users. Easier credit should

State and local government
expenditures will rise by
$2Mi

remain in

THE COMMERCIAL AND

and the

year.

or

the

high;

aUhtettaS' superable.
880 T"
l
faces

business

goods and services will be stronger
quarter by quarter for the next

of

your

in

business.

But

smart

ltseit

collect

less

as

pay off exceptionally well,
both for the equipment companies

year

and

incentive

and clear-cut evidence that

equipment will cut costs and
itself in a short time.

follow suit if they

viduals

ment has the reinforced

equipment could
by renewed ment committees to
examine
buyers ' how the operation and function and

The government, in Lisis expected to spend
from $78 to $80 billion, and will
business

markets get soft and sales
harder to make that
manage-

are

might

recovery*
cal
1959,

from

out-

when

sales

show

to

when

will also be favorable to economic

locomotives

it's

of

their

pay
pay for
i°r

Nevertheless, monetary policy alone cannot cure recession.

Many

So

new

Tavor'
r!

policy for the next

be

may

when

and

year

least

maior
major

a
a

_

Fiscal

of
of

a
new
high as well,
to the editor of The
Machinist. American

producers

enlarge

rates.

electric

securing

at

American

expansion. It is also favorable to
business
refinancing
at
lower

raflios
i ad Jos,

the most useful tools in

at

industry faces
industry laces

year ago,

the great depression of the

of

be

according

effort

recovery

latent wants

one

be

may

a

short, our financial
now
highly liquid and
to

aee
age

plant

new

years old, and this

may

In

able

in

machinery at least 20

and
about $6 billion above the peak ol
prosperity last July.
•
is

average
average

place is, possibly, at
high, in spite of all

ment task.

i&ctiidijit:,

is

on

bonds

to run off;
included, the
now $9
billion

is

periods

World War II In head and all Jther'costs must be capitulation t^ unreasonable'dtfoh
, the , metal., cute The rigors of necessity may mands just to prevent or
stop a
Y°rkl.ng machinery in place in be used by management to break strike. Company handling of wage
American, industry was at least down established habits and pave negotiations must not be conducted

are

above the level of

earlier

af¬

can

only when
by produc-

.>0about 72
491ot

allowed

if time
money

to

111

growth

figure

been

The

use.

all-time

the

suppij

not

and

Advertising

an

cut

Stes

.

set¬

wage

nation we

a

increases

™any

equipment

corpoiafiqn bonds ten

commercial

tures.

nature.

been

corDoration

declined.

pf

■

where,

to

The

Meantime, the loans and invest¬

advertising

this

has

Interest

and

uniform treatment of applications

case

order

work.

*

As

wage

•

could

commercial rmner rate has dropped
from over 4%riastNovember

taxes.
am

.<■ utilities

in

to

rate

suer.

I

loans

assets

^

cost-raising

tlements.

ford

ca- moded and even unnecessary.
Management's efforts to curb
lf
in most ■
While one of the great merits excessive and
uneconomic labor
1"dustue,s'lew companies have alt of private competitive enterprise costs, therefore, must involve a
a
,•
up"t?~dat,e P05/'6" is the c°»stant pressure to cut sustained genuine effort to earn
dUC
whlch they costs and eliminate waste, it is the support of employees and
could

nressre
in
pressuie tn make into

and

their

„

m

credif

at

non-

relatively easily, business
may become lax.
Procedures and activities appropriate

stability

jeopardized, not advanced, by

continued

E.vten .with temporary idle

This switch has ereatlv reduced
the
cost of
and
out
the
banksunder
canks under

,

times when sales

practices

Plant and Equipment

recessfon wtnd leamng agamSt the

the

institutional investors would have

•

the

has

dollar amount of refundable
issues were to constitute

<which

...

increased by $8 billion in the last
12 months. jdven
Even though business
uiuuSn
has declined, tne monev sunnlv
ncs
declined
the
money

;the

minority of

to

than

widespread
that

added

.u

become

to

were

have

^

Reserved "leanln^arainsf the

eral

ments

On the other

on

operations

of

by nearly

of

fact/that

produce

similar

and

terms

The

of

types

some

in

one

amount.

in

one

issues

j

j

how real progress and

are

come

,.

j

Management will receive the full
support of the public in this effort,
only if the facts are made clear
on

Cost Reductions

be

an

by

say business is wonderful.
The economic lesson of these contrasts should be obvious.

How Can Business

provi¬

must

borne in mind that the data I have

number

packers

37

of

strength

of

omy

rests

the

as

well

company.

American
the strength

the

on

individual units.

r

as

the
The

econ-

of its

ues

will stimulate sales.

1 '

nroduetion into
New prouucis anu
products and cqux^incui,
equipment
sumJ£er
iNew
proaucnon inm lines ot labor surpiuses, the
lines 1"(*u^r*es
well-being for both business and
consumers,
where consumer demand is strong of neariy every industry, worker
which constitute better values and,
and can be expected to grow.
and
consumer
is
adversely af- particularly, which will involve
A
news
dispatch
(June
5) fected. Labor leaders have become
savings, should find the best
pointed out that while automobile "wage nominalists"; the "wage
markets.
sales are sluggish, the demand for rate" seems to mean more to them
A period of slack provides the
candy is booming. Soft drinks are than full employment or a stable
pressure and the urgent necessity
in
heavy
demand,
while
the dollar. Or, they say, in effect, "So for
eliminating waste and less esmakers of stoves and refrigerators long as we can ride the
escalator, sential activities. It also provides
suffer. The railroads are trou- let 'er rip."
*
management with urgent pressure
bled, but the pretzel bakers report
In time of recessioh, company to re-examine wage costs and to
difficulty in supplying their mar- managements need especially to
develop a wage policy which will
kets. Orders for machine tools resist the granting of indigestible put the emphasis on real wages
are
depressed, but the pickle and uneconomic wage increases, and not just nominal wage rates.

I*)

a^11a,^.m®

»

The Commercial arid Financial Chronicle

38

.

.

Thursday, June 26, 1958

.

(2890)

ADDITIONS

★ INDICATES

Registration

Securities Now in
★ ABC Vending Corp. (7/16)
24 filed 150,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds — To
selling stockholders. Underwriter—Reynolds & Co. Inc.,
June

New York.

★ Aelus Wing Co.f Inc.
June 16 (letter of notification) 3,500 units, each com¬
posed of 10 shares of common stock (par $1) and five
shares of 7% cumulative participating preferred stock

Price—$15 per unit. Proceeds—For completion
of plant and general corporate purposes.
Office—346
South Broad St., Trenton 10, N. J. Underwriter—None.
(par $1).

Air Craft Marine

preferred stock.. Price—At par ($50 per share).
increase of plant
necessary to extend the service.
Underwriter—None.
Proceeds—For construction of lines and

For

v

^

506,667 were, issued in connection with the ac¬
of all the assets of Yorcan Exploration Ltd.
(latter proposes to distribute said shares ratably to its
stockholders of recorll Dec;~ 16, 1957).
The Remaining
100,000 shares are to be sold for the accOunt ^of the Estate
of A. M. Collings Hendcuson on the American and To¬
ronto Stock
Exchanges
Price.—At market.
Proceeds—

133,740 shares to employees pursuant to stock purchase
options. Price—To public, $6 per share. Proceeds—For
expansion and other corporate; purposes. Office^-At-v
lanta, Ga
Underwriter—None ?

Underwriter—None.

Inc.
filed 65,000 shares of common stock to be offered

June 6

in

exchange for all the outstanding

stock

of

Sales Co.

Campana

Aluminum Top

shares of common

Shingle Corp.

9

improvements to buildings and work¬
Office—245 S. W. 133rd St., Beaverton, Ore.

—For inventory,

ing capital.

American-Caribbean

Oil

Co.

supplied by amendment.

Proceeds — To
wells. Un¬

discharge current liabilities and to drill ten
derwriters—To be named by amendment.
American

Durox Corp.,

plant and establishment of the business at Tampa, Fla.,
including payment of the balance due on a plant site.
Underwriter—I. A. I. Securities Corp., 3385 S. Bannock
Street, Englewood, Colo.

★ American Hospital Supply Corp., Evanston, III.
June 24 filed 100,000 shares of common stock (par $4)
to be offered under Restrictive Stock Options to officers
of the company and its subsidiaries.

American Houses,

Inc.

.

....

notification) 27,575 shares of 5% cumu¬
preferred stock.
Price—At par ($10
per share).
Proceeds—To improve the company's net
current asset position.
Office—South Aubrey & East
June 3 (letter of

Streets, Allentown, Pa.

Underwriter—None.

,

Anderson Electric Corp.

Dec. 23
common

—To

(letter of notification) 14,700 shares of class B
stock (par $1). Price—$12 per share. Proceeds

selling stockholders. Office — 700 N. 44tb
Street, Birmingham, Ala. Underwriters — Cruttenden,
Podesta & Co., Chicago, 111.; and Odess* Martin & Herzberg, Inc., Birmingham, Ala.
to

go

Anita Cobre U. S. A.„ Inc., Phoenix,

Ariz.

Sept. 30 filed 85,000 shares of common stock. Price—At
par ($3.75 per share). Proceeds—For investment in sub¬
sidiary and working capital. Underwriter—Selected Se¬
curities, Inc., Phoenix, Ariz.
Arden
June

4

Farms

filed

second series,

Co., Los Angeles, Calif.
$3,000,000 of 5% subordinated debentures,
due July 1, 1986 (convertible until July 1,

1968), together with 172,162 shares of the company's
stock (par $1) to be offered for subscription by
holders of outstanding common stock at the rate of one
common

new

share for each five shares held

of this registration statement.

on

the effective date

Price—To be supplied by

amendment. Proceeds—To pay off an equivalent portion
of the company's current bank loans which, at May 15,

1958, amounted to $8,450,000.

,

Arkansas Western Gas Co.;

of $100,000, principal amount of 4% 6-year
$150,000 of 5%, 9-year, notes. Price—At par
multiples of $100). Proceeds—To retire notes and
for working, capital.
Office—1901 Winter St., Superior,
Wis.
Underwriter—None.
1
'

Inc.

(in

April 14 filed 8,934 shares of common stock. Price—Ai
par ($100 per share).
Proceeds—For general corporate

Underwriter

Bankers

—

Bond

Co.,

Louis-

•

ceeds—For

property additions and improvements.
fice—Fayetteville, Ark. Underwriter—None.
Asotin Telephone Co., Asotin, Wash.
May 20 (letter of notification) 500 shares of 5%.%■

are more

Of¬

cumu-

BUY!

than 1,400,000 stockholders in

Chicago

and the midwest. Their

holdings in corporate equities
Chicago Tribune is the market's
most
widely read newspaper and productive advertising
medium. A Chicago Tribune
representative can supply
the facts you can use to sell more of
your securities in
exceed $20 billion. The

this rich market. Call him.

(EJjjrajjix Oxibnxte
WOMB'S

Mid America's

most

GREATEST

NEWSPAPE&

widely circulated market table pages




'.'4

★ Chase Fund of Boston
24 filed
(by amendment)

additional 1,000,000
shares of beneficial interest in the fund (par $1)..-Trice

★ Barton Distilling Co., Chicago, III.
June 20 filed $300,000 of 6% secured notes, due July

1,

secured notes, due July

an

1,

1.963, and $1,000,000 of 6%
1964. The $300,000 of notes

are

—At market. /Proceeds—For investment.
★

direct obligations of the

secured by whiskey warehouse receipts for hot
375,000 original proof gallons of Kentucky
bourbon whiskey produced by the company not earlier
than Jan. 1, 1957. The $1,000,000 of notes are direct obli¬
gations of the company secured by whiskey warehouse
receipts for not less than 1,250,000 original proof gal¬
lons of Kentucky bourbon whiskey
produced by the

a $100 debenture and six shares of stock;
remaining 72,030 shares to be offered separately.
Price—$130 per unit; and $6 per share. Proceeds—To

consisting of
the

purchase from Eastern Shore Natural Gas Co., a sub¬
sidiary, its $350,090 of 25-year 6% convertible subordin¬

Price—To be sup¬
Proceeds—For the repayment of

not later than Jan. 1, 1958.

plied by amendment.

-":////

(6/30

Chesapeake Utilities Corp.

May 26 filed $700,000 of. 6% debentures due 1983 and
114,030 shares of common stock (par $2.50),"the deben¬
tures and 42,000 shares of stock to be offered in units

-

than

company

-•

and

notes

Bankers Southern,

less

'r'*; V
'

notes*,: $245,000 of its 25-year subordinated notes,
(unspecified) of its common stock,

ated

others; and the bal¬
ance will be added to the general funds of the company
and will be available for financing inventories of aging

and additional shares

whiskey. Underwriter—Fulton Reid & Co., Inc., Cleve¬
land, Ohio.

Pa.

short-term

loans

from

banks

and

★

„

.

the notes,

9

June

(letter

series

E

Dec

filed

16

/"

-

;-

$240,000 of 8% 5-year
be offered in denominations of

to

Refining Corp. f

$25,000,000

t

mor^ge -bonds

first

of

due

1968, $20,000,00 of subordinated debentures due
l< common clock to be
offered in units as follows: $l,00u of bonds and 48 shares
of stock and $100 of debentures I' d nine shares of stock.
Oct.

1968 and 2.0003100 sharer

1,

Price—To

be

by amendment. - Proceeds
To
Underwriter—Lehman Brothers, New

supplied

construct refinery.

filed

York

Offering—Indefinite.

*,

-<•

r

*

★ Cooperative Grange League Federation

Exchange, Inc. ;
20 filed $400,000 of 4%

June

'>

\

subordinated debenture?,
10,000 shares of 4% cumulative preferred stock (par
$100) and 200,000 shares of common stock (par. $5).
Price—At par. Proceeds—To be added to working-cap¬
ital. Office—Ithaca, N. Y. Underwriter—None.
<
f'- >

-

Counselors
Feb.

Research

100,000 shares
Price—At market.
Counselors

Underwriter—

Louis.

• ■ •

Inc., St. Louis, Mo.
of capital stock, (par one
Proceeds—For investment.
Research
Sales
Corp., St.

Fund,

filed

5

cent).

Underwriter—Each issue will be underwritten by
t

/

Sept. 1,

★ Boeing

ment.

v.

:C

notification)

debentures

Commerce Oil

Florida Service Corp., Billups Petro¬
Georgia, Inc., Billups Petroleum Co. of N. C.,
Inc, Billups Petroleum Co. of S. C.r Inc., Florida Friend
Oil Co., Inc., and Your Friend Oil Co., Inc.- Office—
Jacksonville, Fla.
Underwriter — The Johnson, Lane, "
Space Corp., Savannah, Ga.
;T\
•
;
-/
•
leum Co. of

Airplane Co. (7/16)
$30,597,600 convertible subordinated de¬
bentures due July 1, 1980, and $60,000,000 sinking fund
debentures, due Aug. 1, 1978. The convertible subordi¬
nated debentures are to be offered to the company's
stockholders for subscription at the rate of $100 princi¬
pal amount of debentures for every 23 shares of capital
stock held on the offering date. The sinking fund de¬
bentures will be offered for sale directly to the public.
Proceeds—To pay $115,000,000 of bank loans outstand¬
ing at June 16, 1958, with the balance, together with
retained earnings, to be used for work in process inven¬
tories and receivables. Price—To be supplied by amend¬

*'
;

$500, $1,000 and $5,000. Price-—At par. Proceeds —For
expansion -of business.
Office — Citizens' Bldg., The
Square,. Georgetown, Del/ Company formerly named
Citizens' Loan & Mortgage Co.. Underwriter—None.
-//

Proceeds—To acquire all of the assets of Orlando

25

of

,

Fuel Oil Co., Inc.,

June

Underwriter—Harrison & Co., Philadelphia,

Offering—Expected June 30.

★ Citizens Acceptance Corp.

1993, and 650,000 shares of common stock (par $1) to be
offered for sale in units, each consisting of $1,000 of
debentures and 20 common shares. Price — $1,000 per
unit.

an

on

Eastern Petroleum Co. (7/8-9)
;
,-/4'
May 29 filed $2,500,000 of 7% debentures due July 1,
Billups

aggregate price of $1,215*000 plus interest, if any,

at

Robert H. Green is President.

-

j

.

•

May 5 filed 55,774 shares of common stock (par $5) to
be offered for subscription by stockholders of record
May 28, 1958, at the rate of one additional share for each
10 shares then held; rights to expire on June 17 (with an
oversubscription privilege). Price—$15 per share. Pro¬

There

:•>

consisting

,

•

Harriman Ripley & Co., Inc.,. and Blyth & Co., Inc.

OPEN TO

r'

Cooperatives, Inc.

May 26 (letter of notification) $250,000 promissory notes

lative convertible

South

Central

•.

company

Englewood, Colo.

May 1 filed 2,500,000 shares of common stock (par $1).
Price—$2 per share. Proceeds—For construction of new

and key employees

selling slock holders
derwriter—None!:

June

stock (par 200).

be

Office—Toronto. Canada. /Un¬

To

400,000 shares

ville, Ky.

(N. Y.)

Feb. 28 filed 500,000, shares of common

Price—To

(7/14)
of common stock, (par 2t
cents.) Price—$1 per share.
Proceeds—To reduce out¬
standing indebtedness and for working capital. OfficeHouston, Texas.
Underwriter — McDonald, Holman A
filed

10

purposes

Underwriter—None.

quisition

Management Corp.

Bankers

Co., Inc., New York.

(letter of notification) 150,000 voting shares of
common stock.
Price—At par ($1 per share). Proceeds

June

Feb. 28 filed

Feb.

r

of which

erating expenses for one year; manufacturing expenses;
expenses for materials and retirement of loans and bal¬
ance for
general fund of the company.
Office—15759
St., Van Nuys, Calif.

t

Campbell Chibougamau Mines Ltd.
March 10 filed 606,667 shares of capital stock, (par $1),

258,740 shares of common stock (par $1),
of which 125,000 shares are to be offered publicly and.

Allied Laboratories,

i v

Underwriter—rBljHh & Co:, Inc., New York

Francisco./

San

and

May 28 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For op¬

Strathern

(7/10)

200,000 shares of $1.24 dividend convertible

of facilities.

First Boston Corp., New'

;

Underwriter—Holton,
r V. '
*■■■? -■

preferred stock (par $25).
Convertible into common
stock at $23.8095 until Aug. 1, 1963, and at $25 therealter! Price—To be supplied by amendment. Proceeds—
To reimburse the company treasury for expenses in con¬
nection with construction, extension and improvement

Price—To be supplied by

Fidelity Life Insurance Co.

REVISED

★ California Water & Telephone Co.

Robinson-Humphrey Co., Inc.,
■
' *
i

York, Courts & Co. and
both of Atlanta, Ga.

ITEMS

corporate purposes.
Co., Los Angeles, Calif.

June 19 filed

Light Co. (6/27)'
June 5 filed 121,317 shares of common stock (par $10)
for subscription by the holders of the company's out¬
standing common stock on the basis of one new share
for each eight shares held of record June 26,
1958;
rights to expire on July 11.
amendment.
Underwriter —

PREVIOUS ISSUE

general

Hull &

<

Gas

Bankers

Engineering Corp.

•

lative

Atlanta

SINCE

.

(7/10)

★ Boston Edison Co.
filed

June

20

stock

★ Crestone Co. '

/

250,000

shares

of

cumulative

preferred

Price—To be supplied by amendment.
Proceeds—To repay short-term bank loans which were

stock.

Price

mining

..

Detroit 19,

connection with the company's construction
Underwriter—First Boston Corp.,. New York.

incurred in
program.

j
(letter of notification) 40,000 shares of common
At par ($1 per share). Proceeds — For
expenses.
Office — 22476 Grand River Ave.,

June 13

(par $100).

I

•

...

—

Mich.

Underwriter—None.

Cuban-Venezuelan

Oil

Voting Trusts,

'

Budget Finance Plan, Los Angeles, Calif. (9/3)
June 10 filed $1,320,000 6% serial preferred shares ($10
par). Price—To be supplied by amendment. Proceeds—
To be used in conjunction with proposed merger of com¬
pany and Signature Loan Co., Inc. Stockholders of Budg¬
et Finance will vote on proposal Aug. 5, 1958.
Under¬
writer—Shearson, Hammill & Co., New York. Offering
—Expected in September.
....
Calidyne Co., Inc., Winchester, Mass.
4 filed 230,875 shares of common stock (par $1).
These shares are issuable upon conversion of an ag¬
,

June

gregate principal amount of $923,500 of 10-year 3% con¬
vertible subordinated income notes of the Calidyne Co.,
limited partnership,

which notes

by the
company Dec. 31, 1957.
The notes are convertible at
any time after July 1, 1958, until the maturity or prior
redemption of the notes at a conversion price of $4 per
a

share.

were assumed

Underwriter—None.

★ California Magnetic Control Corp., North
Hollywood, Calif.

-

.

June 13 (letter of notification) 110,000 shares
stock (par 50 cents). Price—$2 per share.

of common
Proceeds—

> •
]
March 31 filed 767,838 units of voting trust certificates,

Havana, Cuba

-

each certificate

representing the ownership of one share
(par one-half cent) in each of 24
companies. Price — To be supplied by amendment. Proceeds—For capital expenditures, exploratiopa
costs and other corporate purposes. Underwriter—None.
of

common

stock

Cuban
.

★ Dairy Fresh,Foods,

Inc.

j
59,950 shares of common
share. Proceeds—To repay
,

June 16 (letter of notification)
stock (par $1).

Price—$5

per

advances, complete construction of a plant and othdr
working capital. Office—1507 Mile High Center, Denver

Underwriter—None.

2, Colo.

■,

.

★ Dale Bros.,
June

6%

18

Inc. }
(letter of notification)

cumulative

I

i

898

shares of Class A

$50), to be ex¬
changed on share-for-share basis for outstanding 6%
preferred, and 2,102 shares of class A preferred stock.
Latter will be sold publicly at par ($50) for an aggre¬
preferred

stock

(par

gate offering price of $105,100.
Proceeds—From ney/
issue to ret^e debt and for worM^g caoitaL
Office—
1420 H

St., Fresno, Calif.

Underwriter—None.

Volume

Number 5754

187;

.

The Commercial and Financial Chronicle

.

.

(2891)
Davis Brothers, Inc.

v.

*;

'

r

Dieterich Field,

.,r.

June 5'(letter of notification) 1,400,shares,.of
$6 cumu¬
lative preferred stock.; Price—At
par.($100 per share).

Proceeds—For working capital. Office—501 West 44th
•Ave., Denver, Colo; v Underwriter—None.

Inc.-

June 2 (letter of
notification) 500 shares of capital stock.
Price—At par ($100 per share). Proceeds—For

working

capital. Office—923 Farnam St.,
writer—None.

Omaha, Neb.

Under¬

-

39

★ Fargo-Moorhead Baseball Club, Fargo, N. D.

-

June 12 (letter of
notification)) $50,000 of 3% debenture
bonds to be offered in denominations of
$100. Price—At
par.

Proceeds—To retire outstanding obligations and for
and future operating expenses.
Underwriter—

current

Daybreak Uranium, Inc., Opportunity, Wash.
Jan. 29 filed 1,156,774 shares of common stock
(par 10
cents), of which 630,000 shares are to be offered for ac¬
count of company and
526,774 shared for selling stock¬
holders.' Price—At market. Proceeds—Por exploration

•and

drilling costs and other corporate purposes. Under¬
writer—Herrin Co., Seattle, Wash.
^
•
•
-

Dayton Aviation Radio & Equipment Corp. (7/1)
'May 28 filed 500,000 shares of common stock (par 50

•

Diketan

Laboratories, Inc.

None.

(7/1)

(letter of notification) M3,336 shares of common
stock (par $1) to be offered to
stockholders on the basis
of one share for each 10
shares held until the close of

May 21 (letter of notification) 300,000 shares of

business

stock

on

June 20, 1958.

Offer expires on July 11, 1958.
Price—$1.10 per shares Proceeds—For the general fund
of the company. Office—5837 W.
Adams Blvd., Culver
City, Calif. Underwriter—Lloyd Arnold &

Co., Beverly

Hills, Calif.

Offering—On

Co., New York.

be offered for subscription
by common stockholders at
the rate of one new share for each four
shares held.
Price—To be supplied by amendment.
Proceeds—Foi

ri-ri

•:'t> DeKalb-Ogle Telephone

:ii?;

Co.

May 29 (letter of. notification) 22,024 shares of
stock

to

1958

be offered

on.

the

basis

to

of

of record

stockholders

share

one

for

each

common

June

16,
shares

eight

•; now::
expire July 16, 1958. Price—At par
/ ($10 per share).? Proceeds—For a'construction program.

Office-f/112 West Elm St., Sycamoreplll.

Underwriter—

York.

nancing
*,,

Feb.

:

expense

Junev20- (tettei?.o$^notification)

120,000: shares: of

pre-

(par one cent) to be offered, in; 12,000 units, each con¬
sisting of,. 1Q' shares of-preferred and.50 shares of com¬
mon stock.
Price:—$10.50 per unit. "f*foceeds—For pro¬
duction of plays. Office—^133 W^72net St., New York 23,
Nf; Y.,:; Underwriter^None.^
'V: ; ie.

;

Denver Acceptance Corp., Denver/" Colo.

May 19 filed 1,000,000 shares of common stock (par $1).
Price—$2 per share. .Proceeds—To engage, through one
subsidiary Companies to be formed

or more

in

the

business

of

"

policies.1 Underwriter—DAC
;

" Colo. ;

acquired,

or

hrid annuity
Securities'"'Corp., Denver,

writing life insurance

be arranged.

tion.

Underwriter—None.:

stock.

common

-

■

Price—

'

12707.

Valley-

Underwriter—Penna,

.

-

^

•

★ Farm & Home Loan & Discount Co.
common

common

cents),

all to be offered at par, as follows: The class C
stock is

'*r;:

made

DersonMines Ltd..'

only to

who, at the date of the offering,

persons

policyholders of the company; Class A stock only
were policyholders before Feb.
25, 1952,
and to certain officers, directors and
employees; Class B
stock only to policyholders on Feb.
25, 1952. Proceeds
were

June 5 filed 350,000 shares of common stock.- Price—$1

share. - Proceeds—For new equipment; repayment of
loan, acquisition of properties under option, and other
corporate puroosesi Office—Toronto;-Canada/and Em¬
porium, Pa, Underwriter—None.; ■
'
per

to persons who

—To be added to

company's cash balances

Underwriters

—None.

CALENDAR
-A

June

■*/

Atlanta

Gas

27;-,(FridayhvV

Light Co

v

..

.

,

Lazard
.

7

Co., Inc.)

.

121,317 shares

..

/

,

.

Boston

Edison

;

and Robinson-Humphrey

(The

...

(Lazard Freres & Co.) 6,000,000 shares

.

'■«■■■

June 30

.

Harrison

&

(Blyth

(Bids

'•

•

'

Bankers

(Tuesday)

July 1

(Bids

$6,15.0,000

CDST)

noon

Holman & Co.)

Union

Grand

EDT)

a.m.

$25,000,000

Jetronic Industries Inc.—

(Whitney & Co.) $115,000

Co., Inc.)

$2,000,000

Electric

Inc.)

San Diego4 Imperial Corp.
/■_
(J., A. Hogle &

$281,250

$700,000

:

Inc.)

Co.

150,000

shares

Corp

$90,597,600

Debentures
Co.)

&

$300,000,000

(Thursday)
Bonds

a.m.

EDT) $25,000,000

July 21

(Monday)
Common

Debentures

(Smith, Barney & Co.) $25,000,000

;>i:'

>

Co

Bonds

(Bids to be invited)

$9,000,000

^

i' July:7 (Monday)
,

(Lehmaifc Brothers
4

Gas

(Thursday)

August 11

-'•••-•

Common

1,084,054 shares

(Monday)

Utah Power & Light Co
(Bids 11:30

s-

Space Corp.)

$2,500,000

Montana

——Bonds

Laclede Gas Co

..Bonds
PDST) $20,000,000

a.m.

August 12

vBillups Eastern Petroleum Co.———Coin. & Debs.

Power
(Bids

(Tuesday)

Co.
to

Bonds

be

Invited)

$20,000,000

'

(Bids

to

be

invited)

Northern- States Power Co.
.

-

:

...

-

rBids

11

";-

(Minn.)_-

EDT)

am

$10,000,000

August 20

Bonds

$30,000,000

(Bids

Mead

and Harriman Ripley & Co.

(Drexel &• Co.

Inc.)

Missiles-Jets & Automation Fund, Inc
(Ira

New York

Haupt

&

Co.)

$25,000,000

Common

$5,000,000

Telephone Corp
(Bids 11

a.m.

•(Offering
A.

C.

to stockholders—underwritten by
Allyn & Co.) 59,532 shares
- i




be

Bonds

New England

t

Equip. Trust Ctfs.
invited)

$2,340,000

fBlds

to

be

'nvlted

September 3

»

(Wednesday)

Hammill &

September 23
Southwestern

-

Bell

Underwriter—None.

'

t

Flexible Tubing Corp., Guilford, Conn.
June 9 (letter of notification) 61,879 shares of common
stock (par $1) to be offered to holders of common stock

purchase warrants due April 1, 1964. Price—$5.45 per
share if warrants are exercised prior to April
1, 1960.
Proceeds

—

For

Florida

May

29

1988.

working capital. Underwriter
on

—

None.

June 9.

Power

filed

Corp. (7/1)
$25,000,000 of first mortgage bond9 due
pay off temporary bank loans of

Proceeds—To

$16,000,000 incurred to meet costs of the company's con¬
struction program and the balance will be applied to
the 1958 construction program. Underwriter—To be de¬
termined by competitive bidding.
Probable bidders:

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Lynch, Pierce, Fenner & Smith (jointly); Leh¬
man Brothers and Blyth &
Co., Inc. (jointly); Eastman
Dillon, Union Securities & Co., and Harriman Ripley &
Co. Inc. (jointly); The First Boston Corp.
Bids—Ex¬
pected to be received up to 11:30 a.m. (EDT) on July 1.
Merrill

Fluorspar Corp. of America
26 filed 470,000 shares of common stock
(par II
cents). Price—$3 per share. Proceeds—For exploration
work and working capital.
Office — Portland, Ore.
Underwriter—To be named by amendment. Sol Gold¬
berg Is President.

1
Co.)

Preferred

$1,320,000

Telephone

Co

Laboratories, Inc.

.

..

26

filed 150,000 shares of capital stock (par 10
Price—$2.50 per share. Proceeds—For sales pro¬
motion of company's products,
working capital, addi¬
tional inventory and accounts receivable, for research
and development and for other general corporate pur¬
poses.

Office—Brooklyn, N. Y. Underwriters—Statement
Port & Terminal Co.

May 23 filed 2,138,500 shares of common stock (par
$y.
Price—To
be supplied by amendment.
Proceeds—To
pay some $174,000 of outstanding indebtedness and to
complete phase one of the port development plan, at a
cost of $1,425,248, and the balance will be added to
working capital. Office—Fort Pierce, Fla. Underwriter
—Atwill & Co., Inc., of Miami Beach,
Fla., on a best
-

<

i( (The) Friars National Association, Inc.
June 19 (letter of notification) $100,000 of
10-year 3%
registered second mortgage bonds due July 1, 1967 to be
offered in denominations of $100.
Proceeds—For con¬
struction

of two-story wing and gymnasium and other
improvements. Office—57 E. 55th St., New York, N|, Y.
General Aniline

A Film Corp., New York
filed 426,988 shares of common A stock (no
par) and 1,537,500 shares ol common B stock (par $1).
Proceeds—To the Attorney General of the United States.

Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton
Corp.
(jointly); Kuhn, Loeb & Co.;
Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45 pjn.
(EDT) on
May 13 at Room 654, 101 Indiana Ave., N. W., Washing¬
ton 25. D. C„ but bidding has been postponed.

ic General Capital Corp.
16
(letter of notification)

60,000 shares of 7%
preferred stock. Price — At par ($5 per
share). Proceeds—To finance new business of the com¬
pany.
Office—4309 N. W. 36th St., Miami Springs, Fla.
cumulative

Underwriter—None.

Georgia Casualty A Surety Co., Atlanta, Ga.
May 6 filed 450,000 shares of common stock (par $1).
Price—$6 per share. Proceeds — For general corporate
purposes. Underwriter—Buckley Enterprises, Inc.
150,000 shares of class A
Price—$2 per share. Pro¬
ceeds—For genera] corporate purposes.
Office—1 V.
35th Street, New York 16, N
Y
Underwriter—James
Anthony Securities Com 37 Wall St., New York 5, N. Y.
common

stock

(par 10 cents).

Graphic Controls Corp.
20 (letter of notification) 7,400 shares of class A
(par $5) to be offered to employees of the sub-

June

(Tuesday)

(Bids to be invited) $110,000,000

Forest
March

cents).

Feb.

Debens.

$40.00(1 OOO

Budget Finance Plan
(Shearson.

indebtedness issued in payment for
improvements on
homes and secured by mortgages or other liens
upon the

Glassheat Corp.
12 (letter of notification)

(Tuesday)

Telephone & Telegraph Co

EDT) $65,000,000

Northwestern Public Service Co—_—„—Common
4

to

August 26

—.Debentures

Corp.v

(Wednesday)

Norfolk & Western Ry

July 9 (Wednesday)

Co., Inc., Clifton, N. J.

7 filed $1,000,000 of 12% notes, payable nine
months after date of issue in units of $100 or in mul¬
tiples thereof. Price—100% of principal amount Pro¬
ceeds—To be used solely for purchase of notes and
other

June

1

-V-

v;:iJuly 8 (Tuesday)v
(The Johnson, Lane,

24

Transmission Co

(Dillon, Read & Co., Inc.)

and Merrill Lynch, Pierce, Fenner St Smith)

$8,000,000
.::\sv..n

.

July

Frelerred

Laclede Gas Co.;.-

,

Bonds

Co., and Laurence M. Marks & Co.) $15,000,000

Tennessee

.

other cor¬

Jan. 14, 1957

—Common

(Kidder, Peabody & Co.; Blyth & Co., Inc.; White, Weld &
Co., and Laurence M. Marks & Co.) 200,000 shares

.

and

Underwriter—N one.

July 23 (Wednesday)

(Kidder, Peabody & Co., Inc.; Blyth & Co., Inc.; White, Weld &

Martin Co.:?-i—-u——

'

.

For expansion

efforts basis.

Co

Washington Water Power Co
e

—

Office—Richmond, Va. Underwriter—

First Backers

Fort Pierce

l'

July 2 .(Wednesday)

Proceeds

porate purposes.
None.

to be amended.

$400,000

Washington Water Power Co

—__—Preferred
Co.)

Co., Inc.)

(Offering to stockholders—underwritten by Blair & Co., Inc.
and Scherck, Richter Co.) 389,577 shares

.j—-Common

(Blair & Co.,

.—Common

&

(Wednesday)

Stanley

Otter Tail Power

Salem-Brosius, Inc.
;

Tampa

Debentures

(Blair &

..

(Monday)

Textron, Inc.

_i/L_Debs. & Stock

Salem-Brosius, Inc.
..

Steel

Common

—-—

$30,000,000

Debentures

(Bids 11

Burnside & Co.)

(Mortimer B.

Potomac Plastic Co

.Debentures
EDT)

Co.

July 17
Debentures

Co

(Offering to stockholders—underwritten by Morgan
Stanley & Co. and W. E. Hutton & Co.) $10,450,000

y

Common

(Reynolds &

(Morgan

%

200,000 shares

(Harriman Ripley & Co., Inc. and Blyth & Co., Inc.)

Bonds

11:30

*■

Preferred

Vending Corp

United States

$500,000

Florida Power Corp
Bids

$25,000,000

Boeing Airplane Co

.

Dayton Aviation Radio & Equipment Corp.—Com..
(McDonald,

Inc.)

Holman

July 16
ABC

!

Chicago, Burlington & Quincy RR.—i JEq. Tr. Ctfs.
V

Co.,

Management

;(Bids 1L a.m. EDT) $10,000,000
:

Corp.)

10:30 a.m.

(McDonald,

Bonds

Orange & Rockland Utilities, Inc
/

&

July 14

& Debs.

Co."

Preferred

-

Boston

Southern Natural Gas Co

•'

(Monday)

Corp.,—__iCommon

Chesapeake Utilities
:

(Thursday)

Co.—
First

California Water & Telephone Corp

Fund, Inc., N. Y.__—__Common

determined.

Dec.

July 10

...'..Common

First; Boston Corp., Courts & Co.,

r

price to be

Offering—Made

19

(letter of notification) 125,000 shares Class A
stock (par 25 cents); 100,000 shares Class
voting stock (par 35 cents); and 100,000
shares Class C non-voting common stock
(par 50
B

any, will be offered to the public. Price—$5 per
share to stockholders; and to the public at a

•

common

shares Pro¬

per

capital.: Office—E.

way, Opportunity, Spokane, Wash.
luna & Co., Spokane, Wash.

voting

remain¬

ing, if

improved properties.

Evergreen Gas & Oil Co.
June 2 (letter of notification)
1,500,000 shares of
stock (par five cents); Price—15 cents

June

March 7 filed 450,000 shares ol common stock
(par $1)
to be offered for subscription by holders of
outstanding
stock on a pro rata basis; thereafter the balance

April

shares of

working

Price—50 cents per share. Pro¬
loans, etc. Office — 80 Wall St., New
York, N. Y. Underwriter—Dumont Securities Corp., New
York, N. Y.

fi¬

($5 per share)./ "Proceeds—To cover operating
during the development period of the corpora¬

ceeds—For

common

10 cents).

ceeds—To make

■

Laboratories, Berkeley, Calif.

20 filed 300,000

ferred stock <par$l): and 600,000 shares of common stock
•

Offering—Indefinitely postponed/ Other

may

Ethodont

At par

De Lys Threatre Associates,

(par $1) to

expansion and general corporate purposes.
Office —
Clifton, N. J. Underwriter—P. W. Brooks & Co., Inc.,

New

(par

Corp.

Fidelity Bankers Life Insurance Corp.

Dixon Chemical &
Research, Inc.
Dec. 24 filed 165,625 shaies of common stock

•;

Federal Commercial

about July 1.

or

cents).r Price—$1 per. share. Proceeds—rFor; general cor¬
porate purposes. ^Underwriter— McDonald, -Holman &
''

4

June 10

Debentures

stock
\

Continued

on

page

40

*

The Commercial and Financial Chronicle

39

Price—S6.75 per share,
working capital. Office—189
St., Buffalo 10, N. Y. Underwriter—None.

proceeds—To be added to
Bensselaer

(7/1)
■'/'■//(.■
of subordinated debentures, due

Union Co.

Grand

June 12 filed 10.450,000
:

1978. to be offered to common
of SI 00

debentures for each 23

July 1.

Rights to expire on

shareholders in the ratio
shares of stock held on

July 21. Debentures to be

until July 15, 1968. Pro¬
retire all outstanding shortterm bank borrowings, including those incurred in con¬
nection with the recent acquisitions of the 41 ''Empire
•Stores'" and 7 "Mohican Stores" the aggregate purchase
convertible into common stock

ceeds—To be used in part to

$8,000,000. to replenish cash

price being approximately

expended in these acquisitions, and to pay the unpaid
balance of the purchase price. The remainder will be
added to the company's general funds and will be available lor working capital and installation of fixtures for
new stores.
Underwriter — Morgan Stanley & Co. and

Receipts for

bearer shares of Compagnie D'Outremer Pour L'lndustrie Et La Finance ("The Overseas Company for Indus¬

Co.

try and Finance"). A Belgian Investment

Md.
of common stock, of which

Insurance Corp., Baltimore,

Guardian

200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exercise
of warrants which are to be sold at 25 cents per warrant

-

to organizers, incorporators, management,
tors. Price—$10 per: share. Proceeds—For
ital

corporate

general

and

None.
&

H.

B.

and/or direc¬

working cap¬
Underwriter —

purposes.

•

best efforts basis.

June 11

Inc.

* L & L Scrap Iron Corp.
13 (letter of notification) 300,000 shares of com¬
stock. Price—At par. Proceeds—For working cap¬

Laclede Gas Co.

of 5% collateral notes, due June
(subordinated) and 256,236 shares of common
ctock (par 10 cents) to be offered together with cash in
-exchange for the outstanding common stock (par $20)
of General Trading Co. on the basis of (a) three shares
of American Machine common (b) $12 principal amount
1968

notes, and (c) $5 in cash, for each of the 85,412
-outstanding shares of General Trading common stock.
The offer is conditioned, among other things, upon its
of 5%

-

.

-acceptance by holders of not less than 68,330
the General Trading stock. Offer expires June

shares of

25. Office
—Culver City, Calif.
Dealer-Manager—Kalman & Co.,
Inc., St. Paul) and Minneapolis, Minn.

.

Inc., Rockville, Md.
11 (letter of notification) 15.000 shares of class A

Hawkes

June

Cage System,

*

Price—$1 per share. Pro¬
working capital. Underwriter

stock (par 10 cents).

common

ceeds—For inventory and

—None.

Hoagland & Dodge Drilling Co.,
Tucson, Ariz.

Inc.,

shares of capital stock. Price—$10
jper share.
Proceeds—To be used in part for the ex¬
ploration of mines and development and operation of
mines and in payment of indebtedness. Underwriter—

June 12 filed 27,000

3Ncme.

Co.

amendment.

May 26 (letter of notification) 300,000 shares of common
ctcck.
Price—At par ($1 per share).
Proceeds—For

supplies, advertising, furniture and working capital. Of¬
fice—710 South Fourth St., Las Vegas, Nev. Underwriter
—None.

cost

Price—Par per unit.
of

constructing

an

Proceeds—To be used to pay
addition to warehouse. Under¬

Idaho

Mining & Milling, Inc.
May 19 (letter of notification) 15,000,000 shares of non¬
assessable common stock. Price—At par (two cents per
share). Proceeds — For mining and milling expenses.
Office—504 16th Ave., Lewiston, Idaho.
Underwriter—
None,

28 filed 150,000 shares of common stock (par 10
cents). Price—To be related to the market price. Pro-

feeds—For working capital and

to enlarge research and
development department. Underwriter — S. D. Fuller &

Co., New York.

Offering—Being held in abeyance.

Insured Accounts

•

Fund, Inc., Boston, Mass.
May 12 filed 5,000 shares of common stock. Price—$5,000
per share.
Proceeds—For investment. Business—To in'vest primarily in share accounts insured by the Federal
Savings and Loan Insurance Corp., in savings and loan
associations throughout the country. Underwriter—None.
Ben H. Hazen is President.

5.000,000 shares of

Price—$5 per share.
•

stock

(par $1).
Proceeds—For working capital and
common

«>ther corporate purposes. Office—Denver, Colo. Under¬
writer—Columbine Securities Corp., Denver, Colo.

Janaf,

Inc., Washington,

1957 filed $10,000,000 of 5y2-3% sinking fund
debentures due Aug. 1, 1972 and 100,000 shares of com¬
mon stock (par 20 cents) to be offered in units of a $1,000
ebenture
one

and

10

shares of stock, or

share of stock

a $100 debenture
Price- -Par for debenture, plus

$2 per share for each 10 shares of stock.

instruction of
-trovements:
♦

a

Proceeds—For

shopping center and other capital im-

for retirement of present

preferred

shares:

and for working caiptal, etc. Underwriter—None. State¬
ment

,,

effective.




and

1,600 acres

gas

'.v

it Minnesota Tree Farms, .Inc.
19 filed 600 undivided fractional fee

June

interest, each

in Minnesota real estate,
Price—495 per fee interest or acre. Proceeds—For work¬
ing capital. Office—309 Main Ave., Moorehead, Minn.
/ Underwriter—None.
•
•\> /'. v
interest equivalent to one acre,

......

■

(William H.)
May "22 (letter of notification) pre-incorporation sub¬
scription agreement to 24,000 shares of class B stock of
ProcTuce Marketers. Price — At par ($2.50 per share).
Proceeds—For working capital.
Office—Room 302, 611

/•• Missiles-Jets & Automation Fund, Inc. (7/9)
May 8 filed 500,000 shares of capital: stock (par $1).
Price—$10 per share. Proceeds—For investment. Under¬
writer—Ira Haupt & Co., New York. - •
Modern

Calif. Underwriter—
v/.vvV:•'.//;,
•

Community Developers,
N. J.

Inc.,

Princeton,

,

Lancaster Chemical

$100 per share.

shares of common
(par $1) to be offered for subscription by common

stockholders at the rate of one new share

/

corporate purposes.

Underwriter—None.
Inc.,.Roanoke, Va.

Nov..18

(letter of notification) 60,000 shares of common
(paT 40 cents). Price—$5 per share. Proceeds—

stock
For

purchase of land, construction and working capital.

Underwriter—Southeastern Securities Corp^ New York.

Investment TrusUFund, Inc.- (N. Y.)

Municipal

Underwriter—None.

undivided interests in

May 9,.. 1957 filed 5,000 units of

Industries, Inc.

75,000 shares of common
Price—$4 per share. Proceeds—

May 26 (letter of notification)
stock

15,000 shares of common stock.' Price—
Proceeds—For working capital and gen-

Motel Co. of Roanoke,

with additional subscription privileges sub¬
ject to allotment. Record date: June 9, 1958; rights expire
July 11, 1958. Price — $1.50 per share. Proceeds—
To repay outstanding debts to purchase real property
and for working capital.
Office — Broad and 13th St.,
Lancer

eral

for each two

shares held,

Carlstadt, N. J.

filed

May 27

Corp.

May 26 (letter of notification) 122,115
stock

oil

the

Ladley

St., Los Angeles,

and Shell Oil Co, Agreement covers
leasehold in a total of approximately
in Harding County, South Dakota. •

tween the company

.

(par 10 cents).
purchase of equipment, raw materials, inventories
supplies and for other working capital. Office^—
1827 N. E. 144th St., North Miami, Fla.
Underwriter—
None.
:
//'
/•"..■/

Municipal Investment Trust Fund, Series A. Price—At
market. Proceeds—For investment. Sponsor—Ira Haupt
&

Co., New York.

.

For

and

it Mutual Income Foundation, Columbus^ Ohio
June 16 filed
(by amendment) an additional 425,000
shares of beneficial interest and $2,000,000 of Monthly

,

Laughlin Alloy Steel Co., Inc., Las Vegas, Nev.
June 13 filed $500,000 of 6% convertible debentures due
June 30, 1968 and 150,000 shares of common stock. These
securities are to be offered in units, each consisting of
$100 of debentures and 30 common shares.

Price—$100

unit. Proceeds—Together with the $175,000 mortgage
loan of the American Brake Shoe Co., will be used to

per

meet

expenditures in acquiring latter

Lazard

company's South
Under¬

working capital.

Inc., Little Rock, Ark.

Price—$15

Fund,

share.

per

Insurance

Proceeds—For investment.
& Co., New York.

Un¬

Freres

capital stock (par $1).
Price—$5 per share. Proceeds—To acquire stock control
)f "young, aggressive and expanding life and other in•urance companies and
related companies and then to
operate such companies as subsidiaries."
First Maine Corp.. Portland. Me.

Underwriter—

it Longren Aircraft Co., Inc.
June 18 (letter of notification) 34,000 shares of common
stock (par $1). Price—From 80 cents to $1.40 per share.
Proceeds—To go to selling stockholders.
Office—24751

Blvd., Torrance, Calif.
Underwriter—Daniel
Co., Beverly Hills, Calif.

Magna Investment & Development Corp.
May 26 filed 56.000 shares of common stock and $500,000
of 6% convertible debentures. Price—For debentures, at
.

par

(in $1,000 units); and for common stock, $4.50 per
Proceeds—/For contractual obligations, for work¬

share.

ing capital, and other general corporate purposes. Busi¬
ness
To engage primarily in the development and
—

operation of various properties, including shopping cen¬
ters.
Office—Salt Lake City, Utah. Underwriter—J. A.

Hogle &

Co., Salt Lake City, Utah.

amended.

Statement to be

•

Baltimore, Md. (7 2)
June 11 filed $25,000,000 of sinking fund debentures, due
July 1, 1978. Proceeds — Working capital and general
corporate purposes. Price—To be supplied by amend¬
ment.

Underwriter—Smith, Barney & Co., N. Y.

Mayfair Markets
24
(letter of notification) 5,000 shares of 6%
cumulative preferred stock (par $50) and 5,000 shares
of common stock (par $1) to be offered in units of one
share of preferred and one share of common stock. Price
—$60 per unit. Proceeds—For working capital. Office—
4383

Bandini

Blvd., Los Angeles, Calif.

Underwriter—

"

'

Proceeds

:

Park, Colo.

2,916,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
per share. - Proceeds—For mining expenses. Underwriter
—Birkenmayer & Co., Denver, Colo.
(letter of notification)

National Educators Finance Corp.
June 4

(letter of notification)

50,000 shares of common
(50 cents per share). Proceeds—
persons to implement and carry
out the projected plan of development and operation.
Office—1406 Pearl St., Boulder, Colo.
Underwriter—
Western Securities Co., Boulder, Colo.
Price—At

train

To

and

par

procure

Gas

Pipeline Co. of America

Nov. 19 filed $4G;000,000 of

first mortgage pipeline bonds
amendment. Pro-'
Underwriters — Dillon,
Read & Co. Inc. and Halsey, Stuart & Co. Inc., both
of New York. Offering—To be made in July.
Price—To be supplied by

1977.

due

ceeds

—

reduce

To

bank

loans.

★ National Securities & Research Corp
18 filed (by amendment) an additional 8,000,000

June

shares in the company's National Securities Series. Price
—At market. Proceeds—For investment.

Nedow Oil Tool Co.

May 5

(letter of notification) 150,000 shares of common
Price—$2 per share. Proceeds—To

stock (par one cent).

loan; to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment Co., Inc.,
Houston, Tex.
pay

New England Telephone & Telegraph Co.
May 16 filed 735,245 shares of common stock to be of¬
fered

for

11

the

on

subscription by
basis

of

one

stockholders

new

share for

of

record

each five

June
shares

held; rights to expire on July 11. American Telephone &
Telegraph Co.owns about 2,547,411 shares (about 69.29%)
of the outstanding stock. Price—At par ($100 per share).
Proceeds—To repay advances from parent and for cor¬

porate

purposes.

New York

June
Series

17
K

Underwriter—None.

Telephone Co.

filed

amended

refunding

Proceeds—To repay
determined

by

(7/9)

statement

mortgage

covering

$65,000,000

bonds

bank loans.

due July, 1, 1993.
Underwriter — To be

competitive

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.: Morgan Stanley & Co. Bids—
To be received until 11

a.m.

(EDT)

on

July 9 at 140 West

Street, N. Y.

Nichols, Inc., Exeter, N. H.
May l3 (letter of notification) 11,111 shares of common
(no par). Price—$27 per share.
Proceeds—For
expansion and working capital. Underwriter—None.

stock

None.

★ Mead Corp. (7/9)
$25,000,000 of debentures due Julv 1, 1983.

June 19 filed

Price—To

Price—At market.

National Beryl & Mining Corp., Estes

May 16

Natural

Securities Corp.

March 28 filed 1,000,000 shares of

&

Purchase Plan Certificates.
—For investment.

stock.

Inc., N. Y. (6/27)
June 18 by amendment increased from 2,500,000 shares
to 6.000.000 number of shares of capital stock (par $1).
•

March

D. C.

July 30,

nd

of first mortgage bonds due
4*8% first mortgage bonds

Martin Co.,

•

International Opportunity Life Insurance Co.
June 2 filed

Buffalo Prospect consists of all the rights of
Mid-America under a certain farmout agreement be¬

Prospect.

Underwriter—To be determined by

Carolina

Inc., Oklahoma City, Okla.
working interests in the Buffalo

Mid-America Minerals,
June 3 filed $199,000 of

(7/8)

$10,000,000

(EOT) on July 8.

Reeves

(N. Y.)

Feb.

•

Co.

Ore.

York, and

competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.: The First Boston Corp.: Blyth & Co., Inc.; Lehman
Brothers, Merrill Lynch, Pierce, Fenner & Smith and
Reinholdt & Gardner (jointly); Eastman Dillon, Union
Securities & Co.; Stone & Webster Securities Corp. Bids
—Tentatively expected to be received up to 11 a.m.
1982.

Crenshaw

Industro Transistor Corp.

preferred

retire bank loans

Proceeds—To refund

Life

writer—None.

-

filed

18

Corp., Ft. Wayne, Ind.

principal amount
5% first mortgage bonds series C in units of $500

each.
-

—

June

derwriter—Lazard

June 2 (letter of notification) $180,000
©f

Underwriters

Gas

Laclede

Metropolitan Hotel Corp., Portland, Ore.
May 27 filed $3,000,000 of 4% 25-year sinking fund de¬
bentures due July 1, 1983.
Price—At par. Proceeds—
For construction program and working capital. Subscrip¬
tion Agent — The Hockenbury System, Inc., Portland,

Price—To be supplied by
Lehman Brothers, Merrill

Lynch, Pierce. Fenner & Smith, both of New
Reinholdt & Gardner, St. Louis.

writer—Sam Watson Co.,

*

H.W.I. Building

cumulative

of

shares

stock, Series B (par $25). Proceeds—To
and for construction program.

Underwriter—None.

Ky.

Office—Cheney Bldg.,
Underwriter—None.

(7/7)

320,000

San Francisco foundry and for

Houston Chemical Manufacturing

>

filed

18

June

SMfev 9 filed $1,024,944

-15.

Virginia St.. Reno, Nev.

the market.

At

ital and other corporate purposes.
139 N.

by Concura Foundation, Chicago, 111. Price—
Office—4th & Colorado Sts., Louisville,

to be sold

mon

None.

'

Mengel Co.
(letter of notification) an undetermined number
$50,000 (par $1)

of shares of common stock not to exceed

June

South

■

American Machine Co.,

improvements. Underwriters — Drexel & Co., Philadel¬
phia, Pa. and Harriman Ripley & Co. Inc., New York.
Offering—Expected on July 9.

due

Guaranty Trust Co. of N. Y.
June 10 filed 50.000 American Depositary

Aug. 16 filed 300,000 shares

May 27 filed 130,000 shares of common stock (par 10
cents). Price—$3.75 per share. Proceeds—For research
and development and for working capital. Underwriter
—Mortimer B. Burnside & Co., Inc., New York, on a

1983.

of New York.

W. E. Hutton & Co., both

r

Thursday, June 26, 1958

.

subsidiary and the balance will
general corporate use including capital

be available for

(7/D

,

and others.

tfidiarv corporations

"

.

of the corporation and a

Philadelphia, Pa.

Jetronic Industries, Inc.,

Continuecl from page

'

.

(2892)

40

be supplied

retire $16,820,000

by amendment. Proceeds — To
principal amount of outstanding debt

★ North Carolina Telephone Co.
June 19 (letter of notification) 207,143 shares of common
stock to be offered to common stockholders at the ratio

Volume

187

Number 5754

.

.

.

The Commercial and Financial Chronicle

41

(2893)
of

share

for each six shares held. Price—At
par ($1
share).- Proceeds—To pay off obligations and for
telephone plant construction. Underwriter—None.
one

per

Northern Indiana Public Service Co.
June 2 filed 374,500 of common stock to be offered for
subscription bv common stockholders of record at 2 p.m.
on June
16, 1958, at the rate of one additional share for
each 10 shares then held.

$40.50

per;

Offer expires July 7. Price—
—
For working capital and

sharer Proceeds

other corporate purposes/
Underwriter—Dean

Witter &

Co., Blyth & Co., Inc., and Merrill Lynch, Pierce, Fenner
Smith, all of New York.

&

Northern States -Power Co.

(Minn.) ' (7/8)

May 29 filed $30,000,000 of first mortgage bonds due July
1, 1988. Proceeds — To refund $18,000,000 of 5% bonds
and for construction program. Underwriter—To be deter¬

mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.: The-First Boston
Corp. and Blyth &

Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner &
Smith, Kidder, Peabody & Co. and White, Weld & Co.,
(jointly); Lehman Brothers and Riter & Co. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly). Bids—Expected to be received
up to 11 a.m. (EDT) on July 8.
.

•

Northwestern

Public

Service

Co.

(7/9)
stock (par $3) to

June 6 filed 59,532 shares of common
be offered for subscription
by common
the rate of

one new

stockholders at

share for each 10 shares held. Record

Date—July 8, 1958; rights expire July 24, 1958. Price—
To be supplied by amendment. Proceeds—To be
applied
to the payment of $900,000 of short term bank
notes, the
funds from which were used for the 1957 construction

program, and the balance if any, will be applied to the
company's 1958 construction program. Underwriter

Pecos Valley Land Co.,
Carlsbad, N. Mex.
13 filed 2,000,000 shares of common stock
,

March

(par
cents), of which 300,000 shares are to be offered ior
sale by the company and
1,700,000 shares by the present
holders thereof.
Price—$1 per share. Proceeds—From
sale of the 300,000
shares, to be used to pay 6% mortgage
notes and interest and to pay back tax claims, and
inter-;
10

est due

Co., Chicago, 111.

Oil

Inc., Salt Lake City, Utah
April 4 filed 597,640 shares of common stock (par $1)
to be offered for subscription by common stockholders
of record March 24, 1958 at the rate of VA new
shares
for each share then held.
Employees may purchase 50,000 shares of unsubscribed stock. Price—To
stockholders,
$1.75 per share; and to public, $2 per share. Proceeds—
For mining, development and
exploration costs, and for

working capital and other corporate

purposes.

Under¬

writers—Harrison S. Brothers &
Co., and Whitney & Co.,
both of Salt Lake City, Utah.
Oil

&

Mineral

Operations, Inc., Tulsa, Okla.

Orange & Rockland Utilities, Inc. (6/30)
May 29 filed $10,000,000 of first mortgage bonds, series
F due

1988.

Proceeds
incurred

—

in

For construction program and

connection

with

the

company's
construction program and the retirement of
preferred
stock of The Orange and Rockland Electric Co.
(a pre¬
decessor) also to purchase 20,000 shares of Rockland
Electric Co., a subsidiary.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,

Stuart & Co. Inc.; The First Boston
Corp.; W. C. Langley
& Co.; Equitable Securities
Corp. Bids—To be received
up to 11 a.m. (EDT) on June 30.

O. T.

17

(letter of notification)

32,500 shares of common
81).,Price—$8 per share. Proceeds—To go to
selling stockholders.; Office—1400 National Bank Bldg.,
Detroit 26, Mich.
Underwriter—Watling, Lerchen & Co.,
Detroit, Mich.
,,,
'
\
/
Potomac

Plastic Co. (7/1)
(letter of notification) $57,500 of 6% subordi¬
nated convertible debentures and
57,500 shares of class A
common stock
(par one cent) to be offered in units of
500 shares of stock and $500 of debentures.
Price—$1,000
per unit.
Proceeds — For equipment and working cap¬
March 31

ital.

Office—1550 Rockville

Pike, Rockville, Md. Under¬
writer—Whitney & Co., Inc., Washington, D. C.
Prairie Fibreboard Ltd.
Feb. 28 filed 210,000 shares of common stock
(par $1.50)
to be offered for sale to residents of
Canada in the Prov¬
inces of Manitoba, Saskatchewan and
Alberta and to
residents of the United States
"only in the State of North
Dakota." Price — $2.50 per share. Proceeds —For con¬
struction purpose.
Office — Saskatoon, Saskatchewan,
Canada. Underwriter—Allied Securities
Ltd., Saskatoon,
Canada.

Printing Machinery Co.
(letter of notification) 20,000 shares of common
stock. Price—At par ($10
per share). Proceeds—For the
June 4

purchase of the

manufacturing assets of another com¬
Office—436 Commercial Square, Cincinnati, Ohio.
Underwriter—None.
Private

Enterprise, Inc., Wichita, Kansas
May 5 filed 125,000 shares of common stock. Price—$10
share. Proceeds
To be used to organize, or re¬
organize and then operate companies in foreign nations,
principally, but not exclusively, in the Far East, Near
East and Africa. Underwriter—None.
per

com¬

Pro¬

ceeds—For

completion of plant plans; land; construc¬
operating expenses: Office—2502 N. Calvert
St., Baltimore 18,/Md.. Underwriter—Burnett & Co.,
Sparks, Md./:/*/ /////■v/:r /' -:
and

4c Otter Tail Power " Co." (7/<23)
June 20 filed $9,000,000 of first
/mortgage bonds due 1988.
Proceeds—For:

the

purpose,-of-/retiring

existing

bank

loans and to supply cash for further construction
expen¬
ditures. Underwriter—To be determined

by competitive
bidding. Probable, bidders/.Halsey, Stuart & Co.
Inc.;
Kalman & Co., Inc.;
Glorfi,'Fpfglan & Co.; and Blyth &
Co., Inc. Bids—Expected to be, received on July 23.
„

•

Pacific Gas & Electric Co.
(6/23)
May 27 filed 853,781 shares of common stock (par $25)
to be offered for subscription
by common stockholders of
record June 17, 1958 at the rate of one new
share for
each 20 shares then held; rights to
expire on July 8, 1958.
iPrice—$52 per share. Proceeds — To repay bank loans
and for construction

program. Underwriter
Blyth &
Co., Inc., Ban Francisco, Calif., and New York, N. Y.
/
—

•

Palestine -Economics
Corp., New York
March 31 filed $2,000,000 of 5%
notes, due Oct. 1, 1963
to be offered in two types: (a)
interest-bearing notes
with interest payable at the rate of 5% and at an offer¬
ing tfrice of 100% of principal amount; and (b) capital-

appreciation notes, at a discount from maturity value so
as to yield 5% compounded
semi-annually. Proceeds—
For making investments and loans in
companies or en¬
terprises that the corporation is already financially In¬
terested in, or for other corporate
purposes. Underwriter
—None.

Statement effective.

Paxton

(Frank) Lumber Co.
May 26 (letter of notification) 15,000 shares of

common

stock (par $5) to be offered to
employees. Price—$12.80
per share.
Proceeds—To redeem common stock. Office
•—6311 St. John Ave., Kansas

City, Mo.

None.

Underwriter—

/

—

Rand




•

(7/1)

promissory notes. Under¬
City, Utah.
*
;

writer—J. A; Hogle &Co., Salt Lake

Southeastern Mines, Inc.
May 28 (letter of notification) 3,000,000 shares of
stock.

mon

of

class

B

stock.

Price—$4.50

per unit. Proceeds—For expenses incidental
drilling for oil. Office—IIIV2 E. St. Peter St., New
Iberia, La. Underwriter — T. J. Feibleman & Co., New
Orleans, La.

to

^ Rapid-American Corp., New York
June

mon

Southern Frontier Finance Co.

$1,504,000 of 7% sinking fund debentures,
15, 1967, together with 105,000 shares of com¬
(par $1). Proceeds—The debentures are al¬

stock

ready

outstanding having been issued in payment of
47,000 shares of common stock of Butler Brothers which
were acquired by Rapid American from 19
persons, in¬
cluding three directors of the corporation. The deben¬
being registered against the possibility that
they may be sold by present owners/ Of the 105,000
common
shares, 75,000 are issuable under the company's
Restricted Stock Option Plan for officers and
key em¬
ployees, and 30,000 under the Employees'■ Stock Pur¬
are

chase Plan.

Underwriter—Nonef.*1//

if Richfield Oil Corp., Los Angeles, Calif.
June
to

23

be

7 V."
.

filed 200,000 shares of common stock
to officers and key employees

offered

directors who

are

also salaried

<

^

(no par)
(including
officers) under the com¬

pany's Restricted Stock Option Plan.;;/,V '"
*

Riddle

Airlines, Inc., Miami, Fla.

common stock
(par 56
cents). Price — $1 per share. Proceeds
$1,525,000 for
purchase of receivables secured by Mobile
—

other

;

;/-/.

"best efforts" basis.

Robosonic National
June

12

filed

Price—$3

per

contract basis

•

June 12 filed

July 1, 1978.

Industries Corp., N. Y.
500,000 shares of common stock, class B.
share.
Proceeds—To manufacture on a

an

None.

Paint-Co.

21

(letter of notification) 14,250 shares of 7%
cumulative preferred stock (par $10) and 10,000 shares
of common stock (par $1). Price—For preferred stock,
$10.25 per share; for common stock, $8 per share. Pro¬
ceeds—For working capital. Office—200 Sayre St., Rockford, 111. Underwriter — The Milwaukee Co., Milwau¬
kee, Wis.

Rocky Mountain Quarter Racing Association
31, 1957 (letter of notification) 300,000 shares of

Colo.

stock.

Price—At par

($1

per

outstanding indebtedness.

Underwriter—R.

Memphis, Tenn.

B.

Ford

~

(7/19)

$30,000,000 of sinking fund debentures, due

outstanding loans under a re¬
volving credit agreement providing for a maximum
$25,000,000 at any one time outstanding. Underwriter

•—To

be

determined by competitive
bidding. Probable
bidders; Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc.; and Kidder, Peabody & Co.
jointly). Bids—To be received until 10:30 a.m. (EDT) on
July 10, in Room 1130, 90 Broad St., New York, N. Y.
t

•

Standard Oil Co.

(Calif.)

June 4 filed $150,000,000 of
sinking fund debentures due
July 1, 1983. Price—To be supplied by amendment. Pro¬
ceeds—To refinance a bank
obligation of $50,000,000 due
this year to provide additional capital for the

company'*

overall

program.

Underwriters—Blyth & Co., Inc., and
Co., botli of San Francisco, Calif., and
New oYrk, N. Y.
Offering—Postponed from June 25 by
Dean

Witter

&

the company "due to
main in registration.

market

conditions."

Issue

national

Petroleum

to

re¬

„

Standard Oil Co. (New Jersey)
May 5 filed 2,246,091 shares of capital stock
being offered in exchange for common shares

(par $7)
of Inter¬

Co., Ltd., of Toronto, Canada, and

Coral

Gables, Fla., in the ratio of nine shares1 of Stand¬
ard Oil stock for 10 shares of International stock. Offer
will expire on July

1, 1958.

Statement effective May 23.

Underwriters—Morgan Stanley & Co. in United States;
and

Harris &

Standard
June

Partners, Ltd. in Canada.

Packaging Corp., New York

4

filed 225,385 shares of the
company's common
(par $1), such shares are to be issued to Johnston.

Manufacturing Co.,

a

New Jersey corporation, under

agreement pursuant to which Standard acquired sub-

an

(antially all of the assets of Johnston.

Strategic Minerals Corp. of America, Dallas, Tex*
$2,000,000 of first lien mortgage 6% bond*
975,000 shares of common stock (par 10 cents). Price
—For bonds, 95% of principal
amount; and for stock $3
March 31 filed

share. Proceeds—To erect and operate one or mo**
chemical processing plants using the Bruce - William*
Process to beneficiate manganese ores.
Underwriter-

per

Southwest Shares, Inc., Austin, Texas.

if Sugarbush Valley Corp., Warren, Vt.
filed $392,800 of 20-year 6% subordinated de¬

June 25

bentures and
fered

share).

in

12.766

shares of

common

stock

to

be

of¬

units

consisting of $800 principal amount of
debentures and 26 shares of stock. Price
$1,200 per
unit.
Proceeds—For payment of short-term bank loan
—

and working capital.

Underwriter—None.

Sun Oil

Inc., Philadelphia, Pa.
April 22 filed 15,000 memberships in the Stock Purchase
Plan for the employees of the
company and its sub¬
sidiaries, together with 188,000 shares of common stock
(no par) which may be purchased by the trustees of tb*
plan during the period July 1, 1958, to June 30, 1959,
1958 plan. Registration also cover*
243,288 shares of outstanding common stock which may¬
be offered for possible sale by the holders thereof
during;
the period July 1, 1953 to June 30, 1959. Underwriter—
None.

Proceeds

Office—Littleton,
Co., Windover Road,

-

.

-

Sunday River Skiway Corp., Bethel, Me.
June 5 (letter of notification)
14,357 shares of common
stock. Price
At par ($10 per share). Proceeds — Foor
working capital. Underwriter—None.
—

Surety Oil Co.
May 28 (letter of notification) 1,200,000 shares of

com¬

Price—At par (25 cents per share). Proceed*
development of oil and gas properties. Office—299

stock.

North

repay

Co.

of

—For

common

Gas

Proceeds—To be added to the company'®
general funds and will be
available for its construction,

mon

—To

Natural

program and reduction of

public relations, and for working capital. Underwriter—

March

or

re¬

Office—Raleigh, N. C. Underwriter—None.

Southern

automatic telephone answering
instru¬
ment; the enlargement of the research and development
facilities of the company; patent and patent applications;

^Rockcote

Homes,
collateral; and $275,000 for working capital,

serve, etc.

with respect to the

May 15 filed 750,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For working capital. Underwriter—James H. Price &
Co., Inc., of Coral Gables, Fla., for 250,000 shares; balance
on

1

May 15 filed 2,000,000 shares of

and

19 filed

tures

com¬

Price—At

par (10 cents per share). Proceeds
mining expenses. Address—P. O. Box 3034, Nortb
Johnson City, Tenn.
Underwriter—None.

—For

stock

share

-

.
^

Foil

one

San Diego, Calif;

—

two

and

Diego Imperial Corp.,

June 2 filed 70,000 shares of 5t£%
cumulative convert¬
ible preferred stock. Price
At par ($10 per
share);
Proceeds—To retire $550,000 of

Drilling Co., Inc.
(letter of notification) 100,000 shares of class A
stock (par 50 cents) and
50,000 shares of class
B common stock (par 50
cents) to be offered in units of
shares of class A

proposed

—j.

San

May 12

common

Oct.

Packman'Plan Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1).
Price—At market.
Proceeds—For investment. Under¬
writer—Investors Investments
Corp., Pasadena, Calif.

Proceeds—To be used in connection with the

acquisition of Alloy Manufacturing Co., Inc., and to re¬
tire indebtedness and
working capital. Underwriter—
Blair & Co.; Inc., New York. •
•
•
.
r;
: I.
•

stock (par

,

tion

!:

Pioneer Finance Co.
June

due Nov.

C.

Enterprises Inc.
March 6 (letter of notification)
23,200 shares of
mon class B stock (par
$1). Price—$5 per share.

Underwriter—Wiles

pany.

April 14 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceeds—For payment of loans, various
equipment, and a reserve for future operations. Business
—To acquire and operate mining claims and oil and
gas
properties. Underwriter—Universal Securities Co., En¬
terprise Building, Tulsa, Okla.

bank loans

the note to Mr. Harroun.

Peoples Protective Life Insurance, Co.
March 27 filed 310,000 shares of common stock (par
$1),
consisting of 62,000 shares ©f class A-voting stock and
248,000 shares of class B-non-voting stock to be offered
in units consisting of one class A and four
class B
shares.
Price—$75 per unit. Proceeds — For working
capital and for development of district offices in the
states where the company I is
currently licensed to do
business.
Office—Jackson, Tenn. Underwriter—None.
R. B. Smith, Jr., is President and Board Chairman.

—

A. C. Allyn &

on

& Co., Dallas, Texas.

Salem-Brosius, Inc., Pittsburgh, Pa. (7/1) ""
June 10 filed $2,000,000 of convertible subordinated de¬
bentures, due July 1, 1973, and 112,500 shares of common
stock (par $2.50). Price—To be
supplied by amendment.;

University Ave., Provo, Utah. Underwriter—None.

Systron Corp., Concord, Calif.
June 10 (letter of notification) 24,475 shares of
capital
stock (par $5) to be offered to stockholders on the basi*
of

one

share for each share held

—$12.25

per

share.

on June 10, 1958.
Price
Proceeds—For working capital. Un¬

derwriter—None.

,2

Tampa Electric Co.

(7/17)
June 13 filed $25,000,000 first mortgage bonds due 1988.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Stone & Webster Securi¬
ties Corp.; Kuhn, Loeb & Co.; Merrill Lynch, Pierce,
Continued

on

page

42

The Commercial and Financial Chronicle

41

Continued from page

Bids — To be
11 a.m. (DST)

received at 90 Broad St.,

July 17, 1958.
Tax Exempt

Bond Fund, Inc.,

C.

Washington,

filed 40,000 shares of common stock. Price
share. Proceeds—For investment. Underwriter

—Equitable Securities Corp.,
Held

pending passing

up

Nashville, Tenn. Offering-

of necessary legislation by

Congress.
4-

Television

filed

24

June

shares

pended
program

additions or replacements. Price—
supplied by amendment. Underwriter—Morgan
Stanley & Co., New York.

Electronics

of common

Inc., Chicago,

Fund,

III.

additional 5,000,000
stock (par $1). Price -— At market.

(by amendment)

an

Read & Co.,

Inc., New York.

naghan & Co., Ltd., Toronto,
Canada only.
,f;

Price—$1 per share. Proceeds—For plant rental
etc.; to retire corporate notes, for core drilling; fo>
working capital; and for other exploration and develop
ment work.
Office — Houston, Texas.
Underwriter None.

Canada. To be offered in

cents), to be offered for subscription by

(par 50

holders of out-

Standing common of record on July 14, 1958, at the rate
Of one new share for each 10 shares then held. Rights

expire July 30, 1958. Price—To be supplied
ment. Proceeds—To reduce short-term bank

by amend¬

borrowings
incurred in financing the acquisition by Textron on June
28, 1958, of the assets, properties and business of The
Waterbury Farrel Foundry & Machine Co. Underwriter
—Blair & Co., Inc., New York, and Scherck, Richter
Co., St. Louis, Mo.

Price—$4

per

share. Proceeds—To

and supplies and

May 26 (letter of notification) 1,250 shares of common
stock (par $10) and $37,500 of 6% serial subordinated
debentures series 1958, to be offered in units of one
share of stock and $50 principal amount of debentures
to be offered to stockholders on the basis of one unit for
each two shares of stock owned (500 of the shares are

May 27 (letter of notification) 5,000 shares of preferred
Price—At par ($25 per share). Proceeds—To pur¬
chase merchandise.
Office—1120 Oakleigh Drive, East-

Underwriter—None.
Chicago, III.

shares of class A common stock. Price
share. Proceeds—For exploration and develop¬
of properties, and the balance for other corporate

June 4 filed 37,500

—$4

per

ment

Underwriter—None.

purposes.

Portland, Ore.

the company). Price—
Proceeds—For working capital. Office—
St., S. W., Atlanta, Ga. Underwriter—

Proceeds—For exploration
Underwriter—To be named by amendment.

pected to be $1 per share).
purposes.
Graham Albert

of

Griswold

Portland,

is

Ore.,

Pres¬

ident.
Utah Minerals Co.

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Proceed*
Office—305 Main St., Park City.
Underwriter—Walter Sondrup & Co., Salt Lake

April 11

stock.

mon

—For mining expenses.

Utah.

City, Utah.

Timeplan Finance Corp.

Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.
★ W. J. Management Co.

(letter of notification) 10,000 shares of common
(par $10) to be offered to certain employees of

Wilson-Jones Co. and its subsidiaries.

(par 10 cents) to be offered in units
share to each class of stock. Price—$11 per unit.

Office —111 E. Main

working capital

St., Morristown, Tenn. Underwriter—Valley Securities
Corp., Morristown, Tenn.
j Tip Top Oil & Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of which
200,000 shares are to be publicly offered. Price—$5 per
share. Proceeds—To drill two new wells and for general
corporate purposes. Underwriter — Andersen-Randolph
& Co., Inc., Salt Lake City, Utah.

// Townsend International Growth Fund, Inc.
May 14 filed 1,000,000 shares of capital stock (par

one

Price—At market. Proceeds — For investment.
Office—Short Hills, N. J.
Underwriter—FIF Manage¬
ment Corp., Denver, Colo.

and

the

Office—
Underwriter—

Jefferson

St., Chicago 6, 111.

Walnut Grove Products

^ Washington Gas Light Co.
June 25 filed 60,000 shares of serial cumulative preferred
stock (no par).
Price—To be supplied by amendment.
Proceeds—To be added to the company's general funds
available

be

for

the

construction

current

program,

which is expected to cost about

$11,250,000 during 1958.
Corp., New York, and John¬

Underriters—First Boston

Investment Co., Tacoma, Wash.
amendment) an additional .180,000
common
stock (par $1).
Price—At market.

ir Washington
filed

(by

Feb. 27

shares

stock

Proceeds—For investment.

(letter of notification) 7,500 shares of common
(par $1) to be offered pro-rata to stockholders on

the basis of

—$4

one

share.

per

Office—203

N.

new

share for 10 shares owned.

Pries

Proceeds—For drilling for oil and gas.
Street, Coudersport, Pa. Under¬

Main

writer—None.

Engineering, Inc.
i
May 7 (letter of notification) 58,600 shares of common
stock (par 10 cents) and $293,000 of 6% five-year con¬
Tuttle

vertible

debentures

due

June

1, 1963 to be offered in
units of 100 shares of common stock and $500 of deben¬
tures. Price—$510 per unit. Proceeds—To pay bank and
other notes payable and for working capital.
Office—
4251 East Live Oak

Avenue, Arcadia, Calif.
—White & Co., St. Louis, Mo.

Underwriter

£ Twentieth Century Investors, Inc., Kansas City,

of

Western Carolina

6

filed

89,391 shares of common stock to be of¬
fered for subscription by holders of outstanding com¬
mon

stock at the rate of

one

new

share for each three

shares held.

The record date is to be supplied by amend¬
Price—At par ($5 per share).
Proceeds—To be

ment.

applied to the payment of $700,000 of short-term bank
loans incurred in carrying forward the company's con¬
struction

and

conversion

program.

June 20 filed 2 000,000 shares of common stock (par $1).
Price—At maiuet.
Proceeds—For investment. Under¬
writer—Stowers & Co., Kansas

City, Mo.

Underwriter—None.

Western Pacific Mining Co., Inc.

Mo.

Westland Oil Co., Minot, N. Dak.
April 17 filed 7,799 shares of capital stock to be offered
for subscription by stockholders of record March 24 at

of

share for each four shares held and one

share

for

balance

the

of

such

holdings

in

divisible by

the

number

of

shares

offered

holders

of

outstanding 5%

four; also
subordinated

debentures of record March 24 at rate of five shares for

market.

each

investment.

Underwriter—

Stowers & Co., Kansas City, Mo.

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5).
price — $10 per share. Proceeds — For acquisition of
Operating properties, real and/or personal, including
-Office furniture, fixtures, equipment and office space, by
Jfease or purchase. Office — Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., if

President.




to

be

$1,000 of debentures then held.

share.

Proceeds—For

None.

working

Price

capital.

—

$60

per

Underwriter—

'

investment

company

16

(letter

notification) exchange of 1,100,510
(par 10 cents) for a like num¬
ber of shares of stock of International Copper & Cobalt
Mines, Ltd. on a share-for-share basis.- Office—Suite

317,

Clay Peters

of

Bldg.,

140

Underwriter—None.

registered as an
closed-end type under the

Cofnpany Act of 1940, Business—The trust,
incorporated under the laws of the Union of Africa, has
been organized to .provide ;a medium for investment in
the common "shares of. companies engaged, in business in
South Africa', with particular emphasis on those engaged
in mining gold. "The trust may also invest to ascertain
extent in gold bullion.
^Underwriter—Dillon, Read & Co.
Inc., New York. *
,
' •
'/ <
Associates. Investment

Co.

plans to issue and sell
determined);

additional debentures (amount not yet

Underwriters

Salomon Bros. & Hutzler and Lehmah

—

Brothers, both of New York

^ B.S.F. Co., Birdsboro, Pa.
,
was reported the company plans to issue $1,-?

June 23 it

500,000 of 10-year'subord inated debentures, with detach¬
able warrants to subscribe to capital stock for a 10-year
period at not less than $11 per share. Each $1,000 deben¬
ture to carry warrants to subscribe for 100. shares of

capital stock.

Laboratories

• C.G.S.

v

June 23 it was reported the company plans the issuance
of 60,000 shares of common stock.
Proceeds—Working

Business—Electronics. Office—391. Ludlow

New

St.,

Co.,

Conn. "Underwriter—Hayden, Stone &
York. Registration—Expected about July 9.

Stamford,

California .Electric Power Co.
March 10 it

was

reported company may issue and sell in

450,000 additional shares of common stock.
Underwriter—To be determined by competitive bidding.
Probable/bidders: White Weld & Go.; Kidder, Peabody
about

1958

Co.; Merrill Lynch, Pierce^ Fenner & Smith; Carl IVL
Loeb, Rhoades & Co., and< Bear Stearns & Co. (jointly).

&

•

Water & Telephone Co.

California

applied to the California Public Utility
permission, to sell an issue^of 200,000 of

The company has
Commission J or

dividend}.,convertible.preferred

$1.24

stock, (par $25).
Aug. 1,

Convertible finto common-stock, at $23.8095 -until

company treasury for expenses
construction, extension and improve¬

reimburse, the

to

used

.thereafter.^Proceeds—Will be

in connection with
ment of

facilities.

York and

;TTnd^i^$rlt^r—Blyth & Co., Inc., New
• .' / */;•
j
..

Electric Co., "Inc.

Louisiana

announced that the company's financing
for .the year 1958 anticipates the sale of both
and equity securities (probably preferred stock)

program

debt

aggregating approximately $5,000,000.
be
•

placed privately:*-Chicago,

"

Both issues may

•

:

Burlington & Quincy RR.

(7/1)

July 1 $6,150,000 of
equipment trust certificates due in 30 semi-annual in¬
stalments. .Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros/& Hutzler.
;
/. /*.
Company plans to issue and sell on

Columbus & Southern Ohio
Dec. 9

it

was

—

(jointly).
in 1958 or

25

it

North Virginia

St.,

Reno,

.

and sell

additional shares of common stock. Under¬
& Co. Inc. and The Ohio Co.

Dillon, Read

Permanent financing not expected
possibly early in 1959.

Consolidated
Feb.

Electric Co.

reported company plans to issue

was

Natural

until late
,

Gas Co.

announced company plans to

issue and

$45,000,000 of sinking fund debentures. Underwrit¬
ers—To be determined by competitive bidding.
Prob¬
able bidders: Halsey, Stuart & Co.; White, Weld & Co.

sell

and

Paine, Webber, Jackson & Curtis

Stanley & Co/ and First Boston Corp.

(jointly); Morgan
(jointly). Offer¬

ing—Expected in July.
Consumers Power Co.

shares of company's stock

Nev.

of the

Investment

Feb. 21

it White Caps Gold Mining Co.
June

Investment Co.

American-South African

writers

one new

;

June 13 filed for permission to become

about 250,000

additional

Inc-i^j^

announced that the company is consider¬

ing plans for ilong-terrn,refinancing. Proceeds—For payr
ment of all notes payable and provide the company with
additional working capital.

derwriter—None.

excess

For

Alco Products

March 6 it was

.

June 20 filed $10,000,000 of plans for the accumulation
of shares of Twentieth Century Investors, Inc. Price—At
—

ing capital and inventories. Underwriters—Blyth & Co.,
Inc. and Merrill Lynch, Pierce, Fenner & Smith. ..

May 26 filed 564,000 shares of common stock. Price—At
par ($1 per share).
Proceeds—For capital expenditures
and exploration costs. Office—Santa Paula, Calif.
Un¬

rate of

^ Twentieth Century Investors Plan, Kansas City,

in the form of common stock,

March 28 it was

N. Car.

June

Co.

preferred stock, or a combination of the two, including
bank loans.
Proceeds—For expansion program, work¬

Central

Telephone Co., Weaverville,

Mo.

Proceeds

'v..'.-

announced that the company plans addi¬

was

1963, and,at $25 a jshare

ston, Lemon & Co., Washington, D. C.
23

Steel

tional financing this year,

capital.

Co., Inc.

May 26 filed $500,000 of 6% sinking fund debentures,
series A, due 1968. Price —100% of principal amount.
Proceeds—For expansion program and working capital.
Business—The formulation, manufacture and sale of a
complete line of livestock feed supplements minerals
and pre-mixes.
Underwriter — The First Trust Co. of
Lincoln, Neb.
;

June

Trans-Eastern Petroleum Inc.

loans

stock of Wilson-Jones Co.

common

None.

to

cent).

Price—$18.50 per

reduce outstanding

Proceeds—To

South

209

stock

For

6,619

of

Prospective Offerings
Acme

some

(letter of notification) 300,000 shares of capital
stock. Price — At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—574 Jefferson

share.

—

maximum

:

Jan. 23 it was reported company

York, Inc.

May 6

purchase of

March 25 (letter of notification) 27,272 shares of 70-cent
cumulative preferred stock (par $5) and 27,272 shares
one

a

(par $10) to be offered to em¬

under the company's Employees' Stock Plan,
Proceed^—For extensions, additions and improvements
of telephone plant and for working capital. Office—132
East New England Ave.'* Winter Park, Fla. Underwriter
ployees

-

April 30,1957 filed 1,250,000 shares 6f common stock(par
16 cents).
Price—To be supplied by amendment (ex¬

.

Proceeds

notification)

of

shares of common stock

March 21 it

stock.

stock

of

Park Telephone Co.

(letter

19

39

Edwin Jefferson,

—

.

Inc.

Druggists,

Wholesale

United

$60 per unit.

common

May

Underwriter-

Amos Treat &

June 13

None.

Yonkers, N. Y.;* Underwriter
Broadway/New York 6, N. Y.

purchase equipment

Office—Salt Lake City, Utah.
Co., Inc., of New York.

purposes.

being offered to the President of
Whitehall

Office—151 Adell Avenue,

corporate purposes.

general

for working capital and other corporate

Utah Oil Co. of New

Thomas Paint Products Co.

543

Inc.

—None.

Uranium Corp. of America,

shares of common stock

20 filed 389,577

June

Wilier Color Television System,

shares of common stock (par $1)

17 filed 375,000

Feb.

Universal Oil Recovery Corp.,

(7/20)

* Textron Inc.

shares of common stock (par on«

cent).

} Texas Calgary Co., Abilene, Texas

of

Thursday, June 26, 1958

.

April 2 (letter of notification) 72,035 shares of common
stock (par $1) of which 10,000 are to be offered to stock¬
holders at $2 per share and the remaining 62,035 shares
are
to be publicly offered at $3 each.
Proceeds — For

Winter

United States Sulphur Corp.
Oct. 8 filed 1,500,000

point, Ga.

April 30 filed 2,000,000 shares of capital stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—To selling stockholder.
Underwriter—Thomson Ker-

v

.

United States Telemail Service, Inc.

(7/24)
June 2 filed 1,084,054 shares of common stock (par $5)
to be offered in exchange for common stock of Middle
States Petroleum Corp. at the rate of 45 shares of Ten¬
nessee Gas common for each 100 shares of Middle States
common; it is a condition of the exchange offer that it
be accepted by holders of not less than two-thirds (1,606,005 shares) of the outstanding 2,409,007 Middle States
common.
Offer expires July 24. Underwriter — Dillon,
Co.

Gas Transmission

Tennessee

be

To

Proceeds—For investment.
•

in corporation's expansion and modernization
and for corporate purposes, including future

outlays for property

June 20, 1957

—$25 per

^ United States Steel Corp. (7/16)
25 filed $300,000,000 sinking fund debentures due
1983. Proceeds—To restore in part working capital ex¬

June

Goldman, Sachs & Co.
New York, up to

Fenner & Smith;

on

.

(2894)

42

Dan E.s Karn,

'

President, announced that

$100,-

600,000 has been budgeted for expansion and improve¬
of service facilities during 1958.
Indications are

ment

that

$60,000,000 "of-senior securities may

be involved;

determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; White, Weld & Co. and
Underwriter—-For any bonds, to be

Volume

187

Number 5754

The Commercial and

Financial Chronicle

(2895)
Shields .&

Co.

(jointly);

The First Boston Corp. and
Co.. Inc. (jointly). An offering of
convertible debentures, offered to
underwritten in October, 1957, by Mor-'-

Kentucky Utilities Co.

Harriman Ripley &
$35,156,700 of 4%%

stockholders, was
gan Stanley & Co.

^ J

'

;;v"

June

,

MacMillan &

•

ic_ El Paso Electric Co.

•

?.'•

-t

-

>

.

^

a special
meeting June 17 on a
proposed issue of $32,500,000 of sinking fund debentures
of which $10,000,000 would be sold in the
United States,

'<*

Jan.

Company roe June 24 f asked. Federal Power Commission
for authority to sell $6,500,000 of
30-year first mortgage

ment

bonds and $3,000,000 of
20-year debentures. Proceeds—
new construction.
Underwriter—To
be determined
by "competitive bidding. Probable bid'ders: Halsey, Stuart & Co! Inc.:
Kidder, Peabody & Co.,

White, Weld & Co, and Shields & Co. (jointly)^Equit¬
able; Securitiesv Corp. :and! R. W.
Pre&spricK & Co.
(jointly). •
'r
■///;/;/'/'-'•//'..

Midland

Equitable Gas Co..x--^,;^v

April

7 it

ably preferred stock, to

secure

approximately $5,000,000

—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White
Weld & Co., all of New York.

-.! Gas Service Co-

:

March 24 it

i

./ /;!

as

'

28, company announced it plans to issue on or
Dec. 31, 1958 $3,200,000 of first preferred mort¬
bonds. May be placed privately. Proceeds — To

pany

term

notes

and

loans

for

and

■

Grace Line Inc.
March 20s if was announced by Lewis A.
Lapham, Presi¬
dent,; that the company plans to

issue-approximately

$21,000,000 of government insured bonds secured by a
first preferred ship
mortgage on the new. "Santa Rosa"
Paula."
Underwriters
Merrill Lynch.
Pierce, Fenner and Smith; Paine, Webber, Jackson &
Curtis; Smith, Barney Co.; White, Weld & Co.; and F
.•

was

reported

a

secondary offering df

12, George H. Buck, President, said that com¬
pany plans to sell some $7,000,000 in new securities
by
the end of this

jfear in the form of first, mortgage bond?

preferred stock.

Recent

bond

financing was made
privately. In event of competitive bidding for bonds or
debentures, bidders may include: Halsey, Stuart & Co
Inc.; The First Boston Corp/ and White, Weld & Co
(jointly); Stone & Webster Securities Corp.; Blyth &
Coy Inc.; Drexel & Co. and Dean Witter &' Co. (jointly)
The First Boston Corp. and
White, Weld &*Co. (jointly)
underwrote last common stock financing. There is
no
preferred stock presently outstanding. Private sale of
30,000 shares ($3,000,000) of preferred is planned.
Houston Corp.

:

*

.

......

'£;>.•

...

June 2 company announced that it
stock

mon

and

debentures

to

.plang to; register com¬
rbe issued im: connection

with acquisition of the Coastal Transmission:
Corp.

Un¬

derwriters—Blyth & Co., Inc.;.,Lehrhan .Brothers; Allen
& Co.; and Scharff &
Jones,. Ine.t Registration—Expected
■July 2..*,yJ. .v~ r-C
.

J

Indiana Gas & Water

March 25 it
issue

and

was

sell

$3,000,000 of

that the

bpmpany plans to
first' mort^gd'bphds. May

Chairman; announced that com¬
plans to sell some bonds 6'rigfnally scheduled for

mid-year, but which sale
1958

or

construction

by

early 1959.

may

now. be

deferred

until

Proceeds—About $8,000,000 for
Underwriter—To

be

determined
bidding.
Probable
bidders:
Halsey,
Kidder, Peabody & Co., and Merrill

program.

competitive

Stuart &

Co. Inc.;

Lynch, Pierce, Fenner & Smith
(jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and
Stone & Webster Securities Corp. (jointly);
Glore, Forgan & Co., and Goldman Sachs & Co. (jointly).
;

Kansas

Feb.
sell

14

it

Power
was

&

Light Co.

announced

.

company

t

.»

plans to issue and

$10,000,000 of first mortgage bonds due 1988.

ceeds—For

bidding.
Halsey, Stuart & Co. Inc.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Smith, and
Stone & Webster Securities Corp.
(jointly); White, Weld
& Co.; Eastman Dillon, Union Securities &
Co.; Kidder
Peabody & Co., Smith, Barney & Co. and Blyth & Co.,
Probable

bidders;

Inc./(jointly).'Bids—Expected to be received
Moore-McCormack Lines,
March 24 it

construction

program.^

Pro¬

Underwriter—To

be

determined by competitive
bidding. Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Glore.
Forgan & Coi; Harriman Ripley & Co. Inc.; White, Weld
& Co.; Blyth &
Co., Inc.; Equitable Securities Corp!




.

Aug. 12.

plans to issue and

$24,000,000 of government insured bonds secured by
first preferred ship mortgage on the liners S. S. Brasil
and S. S. Argentina.

a

Underwriters—Kuhn, Loeb & Co.

and Lehman

Brothers, both of New York.
V!

pected this Summer.

with

Offering—Ex¬

,

National Gypsum Co.
Company plans to register additional

stock

acquisition of American En¬
Subject to approval by stockholders
offer calls for exchange of 1 share

»'

••

New England
Was

Telephone & Telegraph Co.

announced company

(8/26)

plans to issue and

$40,000,000 of debentures. Proceeds—To redeem a
like amount of 41/£% bonds due 1961. Underwriter—To
be determined by competitive bidding. Probable bidders:

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co. Bids — Expected to be received on
Aug. 26.
New

York

State

Electric and

was

announced by the
company that it plans
additional bonds during the latter
part of
Proceeds
Together with bank loans, to be
—

$16,000,000 construction program. Bonds
privately through Kidder, Peabody & Co.

Gas

—

Southern Colorado Power

;

May

9 stockholders
shares of preferred
Stone

&

Webster

in

early
market conditions. Underwriter—For any common stock:
or

The First Boston
•

Norfolk &

Bids

(8/20)
expected to be received1 by the

are

Ry.

on

June

10

it

Salomon Bros. & Hutzler.

Illinois

Gas Co.

announced

company will sell this Sep¬
$20,000,000 mortgage bonds providing new gas
supply from Northern Natural Gas Co. is approved^ by
was

tember

Federal Power Commission.

In event this project has to
will likely issue $10,000,000 bonds
the year.
Company's 5-year construction pro¬
gram calls for $90,000,000 outlay.
Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; First Boston Corp.; Glore,
Forgan & Co.; Blyth & Co., Inc.

deferred,

later

,

Pacific Gas & Electric Co.
20

it

was

undetermined
the

reported

amount

of

company plans sale of an
bonds and preferred stock in

latter part of this year or early

1959. Underwriter
For bonds to be determined by competitive bid¬
ding.
Probable bidders—The First Boston Corp. and
Halsey,Stuart & Co. Inc. (jointly); Blyth & Co., Inc.; (2)
—(1)

For preferred stock: Blyth &
•

Pacific

Lighting Corp.

Co., Inc.

shares of

amendment.
ment.

common

Proceeds

stock.
—

For

of 980,-

Price—To be supplied by
new facilities and equip¬

Underwriter—Blyth & Co., Inc., San Francisco
Offering—Expected about July 16.

and New York.

Co.,

(jointly).

Telephone Co.

1

*

(9/23)

outstanding issue. Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co.
&

Co.

Offering

Inc.; Morgan Stanley

—

It is believed that the issue will be

marketed in late September.

Union Electric

March 28 it

was

Co., St. Louis, Mo.
announced

company plans to market
$30,000,000 of common stock in the latter part of
this year or in the first
quarter of 1959. Proceeds—For
construction program.

about

a

Artists

Corp.

announced

was

that the company is
planning
public offering of additional securities before the mid¬
of July.
Underwriter — F. Eberstadt & Co., New

dle

Registration—Expected

Utah
June

16

Power &
it

was

to be filed

Light Co.

shortly.

\

(8/11)

reported the company plans the sale of

$20,000,000 first mortgage bonds.

out

the

company's

construction

program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; First Boston Corp. and
Blyth & Co., Inc.
(jointly); White, Weld & Co. and Stone & Webster Secu¬
rities Corp. (jointly); Salomon Brothers &
Hutzler; Kid¬

der, Peabody & Co.; Eastman Dillon, Union Securities <&
Co., and Smith, Barney & Co. (jointly); Lehman Brothers
Bear, Stearns & Co. (jointly). Bids—Expected to be
received up to 11:30 a.m. (PDST) on Aug. 11.

and

Washington Water Power Co.

(7/23)

June 16 President Kinsey M. Robinson announced plans
for the sale, before end of July, of 200,000 shares of com¬
mon

stock and $15,000,000 first mortgage bonds.

To be supplied by amendment.

Price-

Proceeds—For working

capital.

Underwriters—Kidder, Peabody & Co.; Blyth 3c
Co., Inc.; White, Weld & Co., and Laurence M. Marks &
Co.

Wisconsin
March 17 it

Power

was

&

Light Co.

announced that company

and sell $10,000,000 of first

plans to issue
mortgage bonds. Proceeds—

To retire bank loans and for construction program. Un¬
derwriter — To be determined by competitive bidding.
Probable

(7/16)

June 20 Board of Directors authorized the sale
000

Bell

The company has asked the Public
Service Commission
of Missouri for the
right to issue $110,000,000 of deben¬
tures.
Proceeds—To refund

company

in

March

100,000

Underwriters-

Paine, Webber,

reported that the compary plans to issue

carry

company

July 16 for the purchase from it of $2,340,000 of series
D equipment trust certificates, Probable bidders:
Halsey,
Stuart & Co. Inc.;

$50).
Corp. and

Proceeds — To refund
the 5 l(i % first mortgage bonds due
1987, and the balance
added to working capital to

Corp., New York.

Western

Securities

Southwestern

York.

a

equity securities later
1959, depending upon prevailing

additional

an

(par

$20,000,000 of bonds. Underwriter -To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Kidder
Peabody & Co., Inc.; The First
Boston Corp. and
White, Weld & Co. (jointly); Morgan
Stanley & Co.; Eastman Dillon, Union Securities &

agement intends to negotiate
year

was

about

group of banks and expects to sell

this

stock

Southern Railway Co.

March 20 it

United

new line of credit with

Co.

authorized

Jackson & Curtis.

June 5 it

a

v

by competitive bidding..
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co.; First Boston
Corp., and Dean Witter & Co. (joint¬
ly); Blyth & Co., Inc.

Co.

announced that

may

June 16 it was reported that
the company
contemplates
the sale of about
$50,000,000 of bonds in the latter part
of this year.
Proceeds—For construction
program. Un¬
derwriter
To be determined

approximately $7,500,000
from additional financing will be required for construc¬
tion expenditures for the balance of this
year. The man¬

was

privately.

Southern California Edison Co.

sell

March 7 it

done

was

some

be placed

in

of latter company,
of National common for 2.4 shares of American Encaustic
common.

financing

and SaHmon Bros. & Hutzler
common

proposed

Tiling Co.

sell

-

announced company

was

on

May 21 voted on
indebtedness of $6,-

an

rities Corp. Last preferred

Inc.

sell

be

Kansas Gas & Electric Co.
March 31, G. W. Evans,
pany

—

Northern

be placed privately. Proceeds—To
repay, bank loans and
for new construction. *
^
/ '

late

1988.
For exploration and construction program.
Underwriter—To be determined by competitive

Co^ Inc..

announced

reported that the company plans to issue

was

April 11 it

Hackensack Water Co.
March

(8/12)

$20,000,000 of first mortgage bonds due

Proceeds

caustic
commoL

voting stock is expected in near future.* UnderwritersMay include: Blyth & Co., Inc.; Carl M. Loeb, Rhoades
& Co.; Hemphill, Noyes &
Co.; Smith, Barney & Co.;
and Merrill Lynch. Pierce, Fenner & Smith:

i

sell

connection

Great Atlantic & Pacific Tea Co.

and

May 12 it
and

—

•

Feb. 19 ft

determined

Montana Power Co.

stockholders on
increase in bonded

an

program.

April 7 it

by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc.;
Merrill Lynch, Pierce, Fenner & Smith and
Kidder,
Peabody & Co., Inc., (jointly); and Blair & Co., Inc.
•

the company plans to
preferred stock "sometime

Underwriter—For bonds to be
determined by competi¬
tive bidding. Probable
bidders: Halsey, Stuart & Co.
Incj
Smith, Barney & Co., Glore, Forgan & Co.
and Blair
& Co. Inc.
(jointly); White, Weld & Co.; Equitable Secu¬

the year.
used for

be

that

or

increase in preferred stock from
25,000
shares to 50,000 shares. * Proceeds
For repayment of
short-term bank loans and for
construction

to

If

.-,•••■»

authorizing
500,000, and

Utilities Co.

an

—To

announced

The

South Carolina Electric & Gas
Co.

was reported the
company plans to issue and
undetermined amount of first mortgage bonds in
the latter part of this year or in
early 1959. Underwriter

year.

was

summer."

March 24 it

bidders

Eberstadt & Co., all of New York..

it

$6,500,000 in bonds

sell

construction ^program

"Santa

this

Corp. and White Weld & Co., both of New York.

:

General Public Utilities Corp.
April 7 stockholders approved a plan authorizing the
directors in connection with an
offering of common stock
to stockholders, also to offer certain shares oh
the same
terms to
employees, including officers, of System com¬
panies. Clearing Agent—Merrill Lynch,
Pierce, Fennei
& Smith, New York.

and

bonds, unsecured notes and common stock.
Proceeds—To build pipe line system to cost about
$111,000,000.
Underwriters — Stone & Webster Securities
Montana-Dakota

determined by competitive
bidding
may-.be Halsey, Stuart & Co. Inc.;
Merrill Lynch,
Pierce, Fenner & Smith, and White
Weld & Co. (jointly); Blyth &
Co.,Inc.; The,First Boston
Corp.; Lehman Brothers.
•••••—

mortgage

Joseph Light & Power Co.
15

market

Midwestern Gas Transmission Co.
March 24
it was
announced that
this subsidiary of
Tennessee Gas Transmission Co. has
applied to the Fed¬
eral Power Commission for
permission to issue first

to the

as

bank loans and for working capital.

repay

No de¬
procedure the com¬
Proceeds—For repayment of short-

will follow.

probable

gage

y

reported that company plans to issue

was

yet has been made

Underwriter

c

*.r'■>'-»

^

$11,000,000 of first mortgage bonds later this
cision

'

was

of additional funds.
Proceeds—Together with $7,000,000
from private sale of 4J/2%'
bonds,, to repay short-term
bank loans and for construction
program. Underwriter*

St.

April

before

7'.

reported that the company expects latej
in the year to issue and
sell additional securities, prob¬

/

Enterprises, Inc.

March

.

•y

invest¬

10,000 shares of capital stock (par $1). Price
share, less an underwriting discount of 8Vfe%

—$10 per
Proceeds—For investment.

Refunding and, for

program

Public Service

plans to offer to bona fide residents of

company

California

$300,600,000 capi¬

1959

Electric & Gas Co.
(8/20)
May 26 it was announced that the
company plans
early registration of $60,000,000 of first
refunding mort¬
gage bonds due 1988.
Underwriter—To be determined
by competitive bidding. Probable
bidders: Halsey, Stuart
& Co.
Inc.; The First Boston Corp.;
Kuhn, Loeb & Co.
and Lehman Brothers
(jointly). Bids—Expected to be
received up to 11 a.m.
(EDT) on Aug. 20.

years.

Master Fund, Inc.,
Fairfield, Calif.
27 it was announced this
newly organized

;

:

1958 and

Proceeds—For construction

($137,000,000 in 1958). Underwriter—
To be determined
by competitive bidding. Probable bid¬
ders— Halsey, Stuart &
Co. Inc.; Morgan
Stanley & Co.

Bloedel, Ltd.

bearing 4%% interest and due in 20

Telegraph Co.

reported company plans

outlay program.

in

Stockholders will vote at

Rip

was

tal

*

.

ley & Cp.: Inc., Nevy York '

Jan. 8 it

Blyth & Co., Inc. and J; J. B. Hilliarp & Son.

;.*.j • V!"
Dixon Chemical Industries, Inc.
4
March 10 it was reported
company plans to do some fi
nancing, the type of securities to be announced latei
Proceeds—For expansion.,,. Underwriter—Harriman
,

Pacific Telephone &

16 company stated it will sell bonds
and/or com¬
stock in the last quarter of 1958.
Underwriters—

mon

'43

bidders:
Halsey, Stuart & Co. Inc.; Smith,
Barney & Co. and Robert W. Baird & Co., Inc. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); White, Weld & Co., Kidder,
Peabody & Co. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.
Offering—Not expected until
late in 1958 or early in 1959.

Financial Chronicle

The Commercial and
44

Twin

After

offspring, are convalescing at the
Jersey City Medical Center.
is

the

son

George

of

preparation

of

year

a

and

was

30,

sales

working with

the Internal Revenue Service and other government
it now seems probable that the mutual fund industry will

areas,

a

get the green light within the next month to offer investors shares
mutual funds which will invest at least 19% of their assets in

reported out
so-called unintended benefits
hardship bill—-which had passed the House of Representatives

and

cial and Financial Chronicle.

At $158

relating to investment companies. The first would allow
funds which invest in tax-exempt bonds to pass through

May Sales of Group
Securities Up 264%

.$3,801,15.9, up 264% from
for May 1957, ac¬
cording to John L. Ahbe, / VicePresident and Director
of] Sales
national

Fund's

Vance, Sanders & Co.

that
sales of The Common Stock Fund
continued to account for a sub¬
Ahbe

stantial

further

noted

proportion of total volume
45%.

at better than

With Sutro Bros.
(Special to Thk Financ ial

KEY

WEST,

Fla.—Rita

Bros.

of Sutro

dealer

shares in the Bond Fund of Boston, which will be converted
into a tax-exempt bond fund.
For an offering period of about

other

will allow to dealers the full sales charge
of 4.15%.
Operating expenses for this fund, including the man¬
agement fee, is not expected to exceed % of 1%.
To preclude the possibility of having too many very large
shareholders who, conceivably, could threaten the stability of the
fund in that they might create serious liquidation problems if
they redeemed their shares, the Vance, Sanders group is expected

115,326 respectively.

A Lehman Brothers

M.

an

the staff

offering,

on a

& Co., La Concha

ments

investment banking group is now readying

billion

to keep our investments at¬

tuned to changing

economic con¬

Reports 12%

Asset Value Gain
semi-annual

the

of
American Business Shares Inc. (a
The

Cash, bonds, preferred and guaranteed stocks accounted for 48.18%
and

report

l&afmd

■Rnlnnppfl
Balanced

Dividend Setlei

increase in asset value of

an

WRITE FOR

TO
YOUR INVESTMENT DEALER OR

NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930

Broadway, New York

5, N. Y.

Nov.

30,

cap

assets

net
a

Q«M

were

F,™

$2o,646,8ol, or $3.63 for each shaie.
The 12% increase, H. I. Prankard 2nd
President, points out, is

market

Lexington

pnppfT«
experienced oy the stock
as
measured by the well

SLL oT^
ferred stocks

heid

those

from

During

were

ment

holdings.

no

period

The following se¬
sale:

.

eliminated by

were

Bonds

months

additions to invest¬

there

curities

partially
stocks.

six

the

and

common

of

C.

—

I.

Financial

T.

in-

$212,542 in

in

Fund,

Trust

in

Corp. 3%/1970; Minnesota & An-

the

agget value

net

For

about

its

mission 3%/1976.

Aluminum

Chemical Corp. 4%% pfd.; and

N.

Y.

State Electric &

Gas

503,068 to 515,628.

%

.

•

TJ

inc°me°f pr'r>c/p°fS'b/e

hZZ^gh
strnents
non

Prankard,
we

Investment Dealer or
HOWARD, Incorporated

24 Federal St., Boston, Mass.

Mi,




"we

are

Mr.

says

hopeful

able

to

make

shifts

in

our

be

worthwhile

.

kind's

}

.

portfolio.

The COmmOH
stock segment was reduced to
65.53% of the total net assets from
70.37%

Oct.

the
period, the fund's invest¬
ment in cash, U. S. Government
obligations, bonds and preferred
on

31,

1957.

In

same

stocks
to

was

increased from 29.63%

34.47%.

ments.

We

($5.00 preferred).

Additions

to

stocks

common

investwe

will continue to perform rel-

atively

well

readjustment

while

the

that

the

portfolio

include

Ry.

current

in

Carrier,

Penn-Dixie

and

ance

General

debenture

Motors
1958

4s

T^nrv Rnnri? 2/2s
2V
Treasury Bonds,

1QM

checks

is announced

stock

against $54.55 at the end

as

sented
to

gain of 5.7% as compared
of 3.4%; in the/Dowover the
length of time.c
;
a

rise

a

a

same

Likes

ceive

distributions

still

tenth

day

though

no

pation is

re¬

of each month.
Al¬
minimum investment

is required for
no

eligibility, partici¬

guarantee of the

ex¬

program

through

a

pay-outs
classes

so

is made possible

staggering of quarterly
of the fund's various
that

one

or

more

AcceptU

S

AmP1

1969, Amei-

benture 3%s 1990, Pacific Gas &

And, as Electric, first refunding mortgage,
the prices of other stocks become
.
rr
„3/ _
1p7R
_nH
Pnlf
attractive to us, we will add them
®f**.
to our holdings and we will make Mobile & Ohio, os, income debensuch other changes as seem neces- tures, series A, 2056.

?C'J\/4S' 1978 and ~ulf'

lx

preferred.

The

fund

the last company's com¬

D. Moreau Barringer,
of

mutual

the

dis¬

fund's

Chairman
and

board

of its investment man¬
Delaware Company, com¬
semi-monthly
Directors' letter that the highway

partner
ager,

mented in his latest

and the slight, but per¬
increase
in residential
construction augur well for Amer¬

program

ceptible
ican
of

Cement, a new combination
cement plants widely

modern

geographically.
pointed out that while

also

He

Kroger, the third largest grocery
chain, is not on the bargain coun¬
ter, its well-planned and aggres¬

to push
high of over $23
perhaps between $5.75
It differs from similar plans in million
that such plans generally arrange and $6 a share. If so, he wrote, its
for monthly distributions by pay¬ present price of 78, which is above
tributions

scheduled for every

are

sive

expansion promises

profits to

a new

—

ing

out

quarterly

dividends

in

three equal instalments.
Under the fhonthly income plan,
an

investor

in Managed Funds'

P:'Per, Metal and General Indus^rjes

shares

would

receive

ican, Telephone & Telegraph, de- quarterly distributions

continues.

owns

diversified

of future dividends.

The

the

s

mon.

the

on

t

the

convertible

least

opportunity to

an

income

r e p o r

liquidation of a small re-*'
holding of Beneficial
Finance and a block of Tung-Sol

three of Managed Funds' 11 share
classes with

.

siduary

year

at

Fund

completion of positions in Kroger
Co. and American Cement, as well

$55 million mutual fund
distributed nationally, from
St. Louis,' Mo.
The plan provides investors in
of

Fiind;

Kroger Co.

Delaware

by Managed Funds,

combinations

;

.

Delaware

a

certain

*

Jones Industrial Average

•"

times

on

of the preceding fiscal year. • •
The asset improvement repre¬

as

12

assets

net

outstanding capital'

share of

per

well

4

)

April 30, 1958 were equal to $56.58

month of the year.

Cement. In bonds, the additions

that include
some

believe the stocks

supplies
as

.

report
Fund

monthly income program en¬
shareholders
to
receive

dividend

tent

.Major

,

own

Prospectuses available from

will

ahead,"

and

$800,250
•

.

reported in the semi¬
of Tem ple toil &

was

Liddell

group

attrtbut?d to changes mLl !rthe

Southern

"In the months

A

Inc.,

from

Corp.

common.

*ro wth~ce*'ig

equipment

It

Dividends

addition, the number of shares in-

Ohio RR.

Kaiser

—

from

estimated

are

1958 ag¬

and'

Teinpleton

annual

abling

per

eliminations
from
the
Paper 3.30%/1975;
N. Y. portfolio include Illinois Power,
State
Electric
&
Gas
3%/'1985; C. I. T.
Financial,
U.
S.
Steel,
Pacific
Telephone & Telegraph Cleveland Electric Illuminating,
3%/1939; Tennessee Gas Trans¬ Southern Co. and Gulf, Mobile &
Stocks

Revenues

1957

•

And Lid* lei I Fund

Managed Funds
To Oiler
Monthly

tario

&

1957.

in

a

share increased to $10.68 on April 30, 1958
fvom
$9 88 on Qct
31> 1957
In
crcased

;

Gain in Asset Valuei

seven

from

grown

the report said,

semi-annual report, observes that

rnnrkptViIups n/hnnSc wf mi

&

holdings

often-, mentioned

are

Lexington Trust

"S Tho

your

com¬

April 30;

gregated $237,640
respectively.

"$442,876 within* the reainTof"' possibility

poioc^o

i
and

related

Net Asset Gain by

were

1957

of

44c

or

vance

EATON

months ended

terest.

$27,364,243,
$4.07 a share for each of the
6,731,176 shares outstanding. On

of the company

consisted "of

dividends

in

riod.

FOLDER AND PROSPECTUS

J1/'**

initial

made

Addressograph

more than $300 mil¬
lion, and tentative potentials of
$1 billion in 1960 and perhaps $2
billion in 1965 for computers and

as

for

$655^418. ~It

share; or 12%, during the pe¬
On May 31, 1958, net assets

a

FREE INFORMATION

tnr»
siv
the
six
reveals

for
for

FunrH
Fund),

in

computers

of May 31, 1958.
the
half-year
was

holdings

Income

months ended May 31,1958

stocks for 51.82%

common

30,

,

to have been

ditions."

Shares

April

to

„

$600 million in 1946 to nearly $2.5

FUND

in

its

have

enues

A MUTUAL
sary

1957

sinking fund debentures (sub- •
ordinated) 5%s, 1972; and the \
elimination of Virginia & South-"
western
Ry. Co. first cons. 5s, 1
1958. Purchases and sales of in-;
vestment securities during the six

The fund reduced or liq¬

uidated

r

American Business

1,

Nov.

ble

companies.
Discussing the business machine
industry in which the fund has
investments
totaling $10,188,000,
the report said that industry rev¬

table Securities Corp. group.

120

in

made in 11 other

were

panies.

And, shares in The Tax-Exempt Bond Fund—a sister fund to
Atomic Development Mutual Fund—will be offered by an Equi¬

INVESTMENT

in¬

percentage

The

yean.

from

Multigraph Corp., Bell & Howell
Company and Black & Decker
Mfg. Co., while additional invest¬

firm commitment basis, of shares in a tax-exempt
managed by Keystone Custodian

Funds.

fund

the

1958,

31,

investments

bond fund to be sponsored ana

Hotel.

Government se¬

S.

U.

In the three months ended May

to $100,000.

to limit initial orders

than

curities, toaled $7,227,644 and $3,-

days, Vance, Sanders

45

CnnoNlctE)

Dobbs has been added to

share on

$9.05 per share on
During the quarter, purchases
and sales of investment securities,

group

year...

"Mr.

of Boston will offer through their

last

with 1958 included the addition of
Feb. 28, 1958. Fairbanks, Morse & Co. converti-

bond funds shares

of tax-exempt

offerings

their

downward trend in

prices about the middle of

May 31 was $10.01 compared

investors.

to

five months of

the first

readying

are

Sales for
1958 to¬
taled $15,799,612, compared with
$5,407,596 for the same period last
Distributors Group, Inc.

bond

62,611 shareholders.

The net asset value per

possibly four or five—mutual fund groups

At least three—and

sponsor,

with

the

reversed

-

holding stocks and bonds.
The Senate Is expected to take up the bill in two or three
weeks. It will take about that long for committee aids to work
out the final language of the bill and write a detailed report on it.
applies chiefly to investment companies

totaled

requirements for banks,

in reserve

total

On crease in the fund's price has
Feb. 28, 1958, end of the previous fallen short of the increase for
the average bond in the B-2 class;
quarter,
total net assets were
$135,672,666 and there were 14,- largely because of its position in;
some
relatively higher yielding
996,469 shares outstanding, owned
securities which are contributing
by 55,631 shareholders. Total net
assets, the number of shares out¬ importantly to income and have('
had a slower comeback in price.
standing and shareholders on May
Investment. : portfolio
changes 1
31 were at record highs.

provision would let regulated investment com¬

second

gradual reduction

bined with the

outstanding,

shares

15,814,330

owned by

panies which invest in rental properties escape paying corporation
taxes on earnings distributed to stockholders, a matter which now

the $1,045,100

the.

to their

tax-free nature of the interest payments the
funds receive from their underlying holdings of tax-exempt bonds.
The

Growth
months

$158,249,112,

of

assets

net

the

shareholders

Investor
purchases of Group
Securities, Inc., continued to show
wide gains over last year in the
month of May. Sales for the month

•for

mutual

v

as

,

1958 reports

ended May 31,

rates

money

evidenced r
by the decline in the Federal *
Reserve ^ rediscount
rate
from
3V2% to l3/i%. This factor, com¬

Million

Fund for the three

Stock

tacked onto the bill two provisions

in
place

drop

that has taken

Massachusetts Investors

earlier in the session.
The Senate Committee had

«

price improvement of B-2
fast October reflects the

since

Fund Assets

bulky H. R. 8381 tax bill—the

-

$21.84 six months

1958, from

ago.

substantal

Thursday, the Senate Finance Committee

Last

the

The Commer¬

conference op Monday.

press

M. 1. T. Growth

whose interest payments arc

local government bonds,
free from Federal income taxes.
and

charge.
learned, will be announced at

The

in

state

semi-annual

the

to

report of Keystone Medium-Grade
Bond Fund (series B-2), .the net
asset value rose to $22.08 on April

Congress,

of the Quota¬

tion Department of

than

more

According

{^offeredtoTiwestoJs'without^
Further details, it

Readying Its Tax-Exempt Bond Funds

Fund Industry Is

day, June 24. The mother, herself
a
twin daughter, and
the twin

Manager

Asset Value Higher

nounce

Assistant Man¬

of the Sales Promotion De¬
partment of Calvin Bullock & Co.,
New York City, became the proud
father of twin daughters on Tues¬

Robert

Stein, Roe & Farnham, a Wall
investment firm, will an¬
next
week
that
it is

By ROBERT R. RICH

ager

Troester,

Bond Fund Net

Coming Soon

Street

Daughters

Robert Troester,

Keystone Ser. B-2

Fund

Mutual Funds

Proud Father of

-

1958

Stein, Roe's New

Boh Troester Is

r

Thursday, June 26,

.

.

.

(2896)

Paper Shares

—

as

his

follows:

January, April,

October; Metal Shares —
February, May, August, November; General Industries Shares —
March,-June, September, December.

the

Fund's

cost,

is

times earnings and

less

Mr.

than

14

comparatively

reasonable in today's

market.

Barringer observed that the

D-J Industrial

Average—probably

under $30 an average
share presently — is selling at
nearly
16
times that
estimate.
Many Wall Streeters, he noted,

earning

regard

this

ratio

Yet, he went on, it
reflects

powerful

the

as "too high."
unquestionably

balance

r

between

a

demand for stocks and

Volume

187

Number 5754

The Commercial and Financial Chronicle

(2897)
a

supply whose increase is being
sharply curtailed
by industry's
reduced
that
is

expansion

supply-demand

altered

or

plans.

Until

relationship

by factors

market

couldn't

Time

to

continue

the

rors

Good

a

continued

he

Invest?"

said.

Mr.

of

that

uptrend

factors:

defense

A

and

results

The

tremendous

public
the re¬

new

and

favorable

Reach New

Industrial

reports net assets of $88.8 million
at the end of the fiscal
quarter,

Sales

and

purchases

with

described

in the fund's
quarterly report re¬
flect the changes that have been

taking place in
ing

recent

FIF- has

our

economy dur¬

months.

sold

companies ..whose
lieved to be

Specifically,

those

securities

future

is

of
be¬

relatively uncertain,

and has reinvested the proceeds of
these sales in companies which

the

fund's

management

better

are

able

to

believes

adjust to

cur¬

rent economic conditions.

A sizable

percentage of securi¬

ties sold during the quarter where
of

companies whose products are
in the more cyclical
capital goods
areas, while a substantial part of
the

purchases

utilities,
securities.

in

were

natural
It

is

electric

and

gas,

felt

drug

that

the

long

term,

well

as

as

stability and probable growth of
income in the interim.

The

net

asset

value

FIF

per

share at May 31, 1958, was 9.7%
higher than at the beginning of
the calendar year. Both the total
net asset value and the number
of fund shares

outstanding

higher than

at

the

close

were

of

any

previous quarter in the fund's 22

history.

year

In

his

letter to FIF

sharehold¬

President C. F. Smith stated:

ers,

"Time
both

and

again, perspective

-

of

stocks

has

in

v

well-selected

probably

of income and capital
possible with any other
readily T marketable investment,"

"More investment

three

powerful

forces

The

first of these

forces is

protected

has

investor

the mature,
from

during

periods

of

eco¬

nomic adjustment which have
curred as a
natural,
and

recurrent

condition

in

our

dynamic and productive free en¬
terprise economy. Perspective in

understanding
temporary
portant."

these

and

periods
as
is im¬

discussing the
population
growth in all age groups, the re¬
port concedes that while this is
guarantee

of

better

conditions in many
countries, it is
The study points out
that the steadily increasing num¬
of

means

people
more

turn, should
mand
and
In

of

for

more

in

mean

a

more

support of the important role
products, a chart of the

new

expenditures

for

research

public
companies,
tional

utility
a

and

survey

Association

of

financial

Companies showed.
Common

oil

stock

industry

were

new

products

mean

markets

new

and generate new demands, the
point is made that "these figures

disclose

the

power

the end of each year except 1953
when utilities
vey

were
first, the sur¬
of 20 mutual fund portfolios

showed.

1

Insofar

as

and

size

at

the

end

were second

of

1957

and

in
for

eight of the 10 subsequent years.
Holdings of financial institutions

the

common

For

stocks.

those

banks,

years

about

concerned

the

industry

mutual

funds

chemical,

building

included

metal

material,

railroad and rubber.

and

steel,

mining,

natural
-




glas,

gas

rescue.

systems brought
the oil centers

major

our

from

cities

ceptance

where

ac¬

fall,"

stated Mr. Fox-Martin.

thinking."

brief

CHICAGO, 111.—John

presiding, includes

welcome

by

Francis

to Staff

CSpecial to The Financial Chronicle)

A typical program, with Mil¬

p.m.

ton Fox-Martin
a

Goodbody Adds

J. Burk-

liardtj Jr., has been added

F.

staff of

La

to

the

Goodbody & Co., 1 North

Salle

Street.

the laws

ments in

still with

are

us.

But the

conscientious and thoughtful land¬
lords outnumber the violators

and,

as

Brooklyn and apartments

a

result,

equipment must
and the market for

new

be purchased

and houses in Queens—natural
gas

gas will increase.

made

possible for the company a
long-cherished dream. It had for

was

most

positively is not

Conversion to natural gas, was, for

Union Gas, a difficult
costly job. It did not attempt

Commonwealth

past six months, the net
Commonwealth

Stock

on

Oct. 31,

to

$5,816,259 on April 30,
During same period the
outstanding rose
406,941 to 494,792 and net
per share increased from

1958.

number of shares

"from
assets

$11.11 to $11.75.
Waldo

Coleman,

President,

stated that since the beginning of
this calendar year, we have wit¬
nessed

a

gressive
decline
one

seeming paradox of pro¬
business recession
and

in

corporate earnings on
hand, and a firming up
on

the

have

at

compara¬

remained

tion
tail

is, of

between

prices

course,

of

has

were

off. There

a

connec¬

stock

re¬

prices.

The firmness of each reflects not

now

new

with

a

but

had

with

minimum

a

it

incon¬

of

homes

were

heated with gas,

venience to residents. Moreover, it
did no harm to public relations—

its estimate at the end of 1957

natural

were so

gas

reduces

is

much

hotter

and

cooking time. The savings,
were
great.
Brooklyn
now
maintaining only

that

more

than 90% of new homes

There

are

other

which its efforts
of

is

in

cold

them

family

was

heated.

Union

is

markets, too,

are

the

smaller

dwellings.:

on

centered. One

Some

multi-

59,000

units of less than 25 families each
are

estimated

to

be

within

the

weather, to meet emergencies and company's territory. It feels that
to "shave" peak loads. Last winter its latest rate
reduction, together
new
was, of course, a mild one and the with
City regulations for
standbys
plants
sent
out
only heating such buildings, make this
field a potentially big market.
209,000 M cu. ft.
Other plants were dismantled at

large

savings

other

expenses.

fact, natural

in

gas

personnel

As

a

and

a

ment

which

offers

the

equip¬

company

only
of

access

New

with

York

the
and

is by ferry. A
bridge
authorizd to span the

been

"Narrows,"

strip

a

of

water

separating it from Brooklyn. This
bridge, when completed a fetv
years hence, will provide easy ac¬
cess

to

Staten

Island

and

will

it to development. While the
company's Richmond division
presently serves only a limited
area,
an
influx
of
population,
open

which is

confidently expected, will
justify the laying of new mains
and individual pipes. While such
development will not be rapid, it

should be substantial because the
island has many attractive areas
that lend themselves well to both

apartments and individual homes.
Also, the western side of the

island, which is linked with the
narrowly separated, heavily ^in¬
dustrialized counties of Union and
Middlesex

in

New

of

good possibilities for increasing its

refineries

gate

sales of gas. It must be recognized

try) should have

matter

flows into

There is other household

population of around

a

and other

Jersey
(oil
heavy indus¬

high industrial
however, that electricity offers potential
and
plenty
of
space
competition in many of for it.
reduced to usable levels and be them. For example, the saturation
In sum, we have in
odorized
and
Brooklyn
metered.
At
the of
375,000 residential structures
Union
Gas
an
old
established
newest
of
its
gate stations, all insofar as dryers are concerned is
company, serving an urgent need
functions
are
completely
auto¬ only 2%. Some 116,600 gas re¬
of the public, which has
only since
matic and the flow of gas is en¬ frigerators
are
operated in the
1952 escaped the erratic
perform¬
tirely controlled from the dispatch 960,000 dwelling units of the com¬
ance forced
upon it by manufac¬
office from 10 miles distant.
pany's service area, or 12%. The
tured gas. The coming of natural
■I
saturation in residential structures
Brooklyn Union buy its natural
which have gas water heaters is gas solved its major problems and
gas from three of the big pipeline
gave it a real chance for growth
systems — Transcontinental Gas, much larger but in spite of their
station

at
high
must have

merely

pressure

the

and

pressure

Texas Eastern and Tennessee Gas.
the end of 1957, contractural

At

sion

approval, for an additional
30,000 Mcf., firm, daily beginning
in November and

a

further

40,000
day of storage gas be¬
ginning in November, 1959. For
subsequent years, this supply must
Mcf.

be

per

augmented

ment is

and

the

manage¬

confident that it will

be

made available.

only a prevailing expectation that
the current business let-down will

came

be

new

relatively brief but also mir¬

was

no

York

Its

all holds

cializing company and it was com¬
pleted in a relatively short time

itself

contract

miles and

boroughs
Brooklyn

and

work

Island, lying in
Bay. It has an
approximately 60 square

of

area

Staten

as

New

plants for this seasonal
demand was prohibitive. With the
coming of natural gas, however,

joyous cries. Whereas, the com¬
pany estimated that in 1953 28% of

the

under

other

the behavior of

and

200,000.

lower

gas

spe¬

do

deliveries were set at 191,127 Mcf.
daily. Contracts have been entered,
hand. Wholesale prices in general
subject to Federal Power Commis¬
in the stock market

also

known

could

need to hold back the company
and it plunged into the fray with

to

gas

of

be installed, however, was
relatively small, for its facilities
did not permit a vigorous cam¬
paign. The cost of building new
oven

distributor
over.

uncertainties, the two of the former gas-manufac¬
report provides ^perspective that
turing plants as standbys to sup¬
is
reassuring.
plement
natural

There
groups liked by

pipeline

the

to

came

to

current

insurance

surveyed.

Other

the

The "Broad Street Board Room

.

however,

overly

tively high levels, and many re¬
companies tail prices and the cost of living
and lending companies were in index
have
actually inched up
third place during five of the 10 further.
like

gas

natural

done

inflation is concerned,

suggests

the

Utility holdings

a

definite

a

in

for there will be many
violations and those who ignore

of this force Brooklyn
standards
of and

underlying higher
living, expanding business
profits."

S.

holdings of the
the largest at

on

come,

present rate of about $6 bil¬ with the hugely increased costs of
with an estimate of a $15 laying
mains
and
distributing
billion in 1965. Commenting that pipes. The day of the x'etail gas

rising from $4,519,194

by the Na¬
Investment

series

starting

not to say that the millenium has

lion,

1957

oil,

ideas

up

schedule

Randolph, Chairman of the Board

the

Fund crossed the $5 million mark,

Mutual funds in the past decade
favored common stocks of

sales

and

assets

have

Petroleum.

concluded

are

of

The really big "ace in the hole"
practically instan¬ years seen the possibilities in gas- for the company is, however, its
development by American taneous.
Moreover,
short loops fired heating for apartments and acquisition and absorption of the
industry is shown, indicating how often made it possible to supply houses. It asserted that
New York & Richmond Gas Com¬
gas-firing
these have grown from about
en route smaller cities where oven
$1
was
in
cheaper and far more con- pany
January,
1957.
The
billion annually 15 years ago to gas had a hard time of
it, what convenient. The scale on which it borough of Richmond is an island,
total

In the

9 of 10 Years

natural
Great

Rxceed $5 Million

For Funds in

Phillips

discussion

a

continuing

The Security I Like Best

de¬

jobs

profits.

Stock Fund's Assets

Tops

Eliminations

Street Mutual

The Forums

techniques.
"Because these

;

Continued pom page 2

which, in

greater

goods, with

Service.

and

ForUms ?have
been so" well received, we
plan to
hbfd two of fhree more; Forums
this summer; and then set

,

Instruments; Food Maeh. &
Chemical;
International
Paper;

country

our

consumers

Public

Funds

and

to point

curity dealers and their represent¬
atives not only in sales
techniques
also in learning about Fund
managements
and
their
invest¬
ment methods and

E.
the

economic

in America.

ber

with

Mr.

Mfg. Co.; Royal Forums" start punctually at 2:30
Petroleum; and Southwest¬ p.m. and adjoin promptly at 4:30

Dutch

and

Funds.

Raytheon

were

In

omist to the Broad

but

r

of

on -"Professional
ManageTechniques" and a case history
of the analysis of a specific indus¬
try by two senior analysts; and an
economic prognosis by Dr. John
W.
Harriman, consulting econ¬

the part of se¬

on

Fred

ent

that "this indicates the
keen,

current interest

Orrick, Dahl-

man

opportune

Oils Are

of

from the portfolio included Beck-

oc¬

.temporary,

firm

dency toward continued inflation.

for

—

dividual financial progress

law

research, and the third is the ten¬

no

out

Coleman

ern

provided

in¬

Mr.

six

the

favoring the long-term ownership

our

Olson.

Vice-President of the

a

growing population, the second is

—

economic

G.

Mutual

talk

a

ex¬

commented"
on

Market" by
Vice-President

Street

Tri-Continental Corporation and a
J. & W. Seligman & Co.
partner;

in

He went

Fund

Broad

attending
first three Forums, held in the

Fox-Martin.

V. Coleman and

Additions to the portfolio in the
months' ended April 30, 1958

fortify the case that this
experience will continue over the
longer term.

have

men

interest

an

accommodate,"

board of directors.

quist, Herrington & Sutcliffe.

cussed to

thoughtful
allowing his emo¬

future

cisco

dis¬

are

pressed

fund since its inception. Mr. Ol¬
son is a
partner in the San Fran¬

was

tions to obscure the opportunities

to

Walter

growth

conducted

,

our

Lewis

are

better i has been

study by Distributors Group
that, "despite efforts to
control it, few believe it. can be
totally stopped." They therefore
suggest that this too is a factor

as

growth of the nation and

These

common

done

salesmen,

dealers
Brown,
by thd"

within

Two

"the

tual

investment

long-term inflationary
Board Room of the Broad Street
the
economy,
he
Group at 65 Broadway, New York
additional members were City, than we have been able to

trend

„

making the point that

holder

these

companies continue to give prom¬
ise of future capital
appreciation
over

First

...

for

Broad
Street
Group of Mutual
Funds, have enjoyed capacity at¬
tendance, according to Milton FoxMartin, President of Broad Street
Sales Corporation.

tion of the

the

econ¬

elected to the

than
-

-

underlying
American

lication.

Fund, Inc.

May
31,
1958,
compared
$76.7 million a year earlier.

the

added.

*

Financial

factors

of

omy,
has been reprinted three
times in the week following pub¬

Highs

'

strength

sponsibilities to the Growing Mu¬

"Broad Street Board Room

Forums"

other

FIF Inc. Assets

And Shareholders

Mutual Funds and Tri-Continental
Corporation and a partner of J. &
W.
Seligman & Co.; "Our Re¬

Street's Forums

the

study taking up 1he very spending; and secondly,
the present
price-earnings plateau lively question, "Is NOW a good lentless upward pressure of union
as
long as people feel earnings time to invest?," has been well wages. There is as
yet no end in
will rise to a more normal ratio received,
reports Distributors sight for the potency of either
to price.
'
Group, Inc., sponsor and 'invest¬ one of these factors. Consequent¬
ment adviser for Group Securities,
ly, looking beyond the current
Inc.
The
report, which places recession, investments should con¬
heavy emphasis on the basically tinue to be geared to a continua¬
at

and President of the Broad Street

Broad

at

.

cites

price

two

rate

SRO

economy,

'

Coleman

from

our

,

long-term

Very Well Received
A

long-term in¬

flationary trend in

absent

now

inoperative, he told directors,
is no a priori reason
why

there
the

"Is Now

45

Aside

the expansion that
with the successive waves of

construction

strong

obvious

are

advantages only 139,000
presently installed, or 36% of

the potential market.

—

mainly apart¬

which

an
intelligent, capable man¬
agement avidly seized. It gave the

also, rising income and
remarkably advantageous op¬
portunity to extend its services
into a large, sparsely settled area
beyond its former borders. Econ¬
company,
a

A
and

large list of accidental deaths
fires is piled up every cold

winter; when only

a few cold days
experienced the list is shorter,
though there were several serious
are

omies in
a

increase

of the

—and

city authorities was aroused
and new regulations were adopted
largely putting responsibility for

before

warmth

more.

buildings. This is

declared last March

was
sense

had.

of

In

this and

yield,

his

a

security it

never

time, this will be

reflected in the price of its shares.
All

landlord and making him respon¬
sible also for certain standards of
in

operating costs permitted

rising dividend rate—the latest

fires and many minor ones in the
winter just passed. The concern

the condition of equipment on the

from

a

too.

a

No

well protected 5%
one

can

ask
i

for

The Commercial and Financial Chronicle

(2898)

.1

'

•

•

T*

,

The following statistical

Indications of Current

latest week
week

Business Activity

in

or,

of quotations,

cases

'• Year

Month

Previous

Latest

"

»

Equivalent to—
ingots and castings

.

„

(net tons)

Steel

-June 29-

——-——

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily

(bbls.) at—

-June 13

11,613,000

12,251,000

.—June 13

6,459,000

6,775,000

190,241,000

*193,025,000

22,959,000

22,344,000

lines—June 13

|

Total

..

.—June 14

connections Cno. of cars)—June 14

CONSTRUCTION

CIVIL ENGINEERING
NEWS-RECORD:

construction

Public
State

Federal

(tons)—

DEPARTMENT STORE SALES INDEX—FEDERAL
SYSTEM—1947-49 AVERAGE = 1(H)—

INC.

BRADSTREET,

59,503,000

42,870,000

518,611

560,765

612,715

622,221

'

495,052

V

RESERVE

$588,107,000

200,577,000
304,958,000

346.946,000
206,906,000

74,308,000

108,780,000

140,040,000

June 17
—June 17

126

135

12,109,000

254

337

5.967c

5.967c

5.967c

$66.49

$66.49

$66.49

$64.56

$35.17

$35.50

$34.00

11,110c

11.000c

June 18

10.910c

10.800c

.Juno
June
—June
Juno

tZtnc

Zinc

.

18
18
18
18

MOODY'S BOND PRICES DAILY AVERAGES:

June 24
-June 24
.June. 24
.June 24
-June 24
June 24

U. S.

-

—

_™
'

Aa
A

,

-

.

-

--

i

—

-

Baa

June 24
mne 24
June 24

Railroad

Group
Utilities Group

Public

Industrials

Group

Government Bonds
Average corporate
U. S.

——I——

Aa

June 24
June 24

,

——

Cjune

-

24

of

Utilities

Intercity

(in

Industrials

Group

May:

'

AVERAGE

1949

=

13.800c

BANKERS*
'

10.500c

10.500c

10.000c

11.000c

OF

24.000c

24.000C "

25.000c

Imports

94.750c

94.625c

94.500c

98.250c

Exports

94.99

93.88
1

Domestic

86.36

96.25

Dollar

93.08

96.38

96.69

96.23

102.46

103.13

103.13

99.52

99.84

99.52

96.07

96.38

95.77

94.12

88.27

38.27

87,32;

92.20

91.62-

91.34

97.62

93.09

97.78

99.52

100.0

99.36

Short

3.98

•

'4V

Total

94.56

1

93.23

2.82

3.96

3.99

4.20

3.60

3.56

3.56

3.97

3.78

3.76

3.78
•

4.13

Manufacturers'

Wholesale
Retail

3.78

3.75

3.79

4.19

Construction

398.5

401.0

403.1

Other

304,529

240,015

248,617

269,356

90

77

86

94

384,471

404,015

348,331

419,664

109.81

109.79

109.87

110.22

287,444
'

219,490

349,040

355,920

913,150

1,243,410

1,274,380

1,592,450

1,630,300

1,263,680

1,594,440

1,540,280

277,440

415,170

28,650

37,200

23,130

351,400

304,670

296,750

388,600

327,800

U.

218,520
234,320

379,100

535,542
195,760

579,159
158,240

day 31

440,022

591,156

72y,040

,

38/,s90

538,502

786,916

887,280

490,440

1,850,290

2,545,152

2,439,529

sales

May 31

346,620

582,000

537,290

337,940

May 31

1,621,272

2,185,966

2,308,090

1,650,500

May 31

1,967,892

2,767,966

2,845,330

1.988,440

Odd-lot

sales by

Number

Dollar

of

AND

SPECIALISTS

SECURITIES

—

ON

EXCHANGE

N.

Y.

short

COKE

820.372

1,047,318

1,268,858

$46,619,209

$55,162,385

$58,590,113

1,057,724

1,111,269

Short

shares—Total

824,965.

COPPER

887,430

14,088

18,467

7,490

1.092,802

879,940

$44,130,710

$46,921,729

$44,688,041

May 31

284,680

361,250

323,620

284/180

361~250

323~620

.May 31

276,310

378,790

490,220

237,090

,

2~37~090

of

May 31

501,060

837.500

843,230

/f->
-

-

-

-

29,630,000

42,906,0.00

1,639,000

*1,571,000

2.306,000

of April:

.

;
—:

.

of month (net tons)

.

-

*4,343,326
4,301,831

3,835,165

6,436.259

41,4n5

6,2*21,182
215,077

3,478,465

2,153,940

*97,598
120,467

151,045

*81,930

120,336

251,099

3,802,015
.33,150

155,360

.

3,721,329
1

*
•
J
90.843
115,978

in U. S. A.—
2,000

pounds)

—_

78,631

"

•••

105,952

SYSTEM—1947-40 Average

=

'

'

'

253,463

*

SALES—FEDERAL RE-

STORE

-

J

100—

,.

May:-

seasonal

12,180,160

12,029,740

Kilowatt-hour

428,110

9,062,830

8,802,590

.May 31

PRICES, NEW SERIES —U.
< 1947-49
100):

9,563,890

13,017,660

12,872,970

of

Month
Revenue

9,230,700

variation^

——

-

adjustment—r—,

133
130

-

-

■ *131

*123

sales

March.

from

S. DEPT.

OF

to

ultimate

135

132

commodities

.June 17

*118.8

119.3

117.3

.June 17.

than farm and foods

97.3
113.0

114.9

115.4

92.6

125.2

*125.0

125.2

CAN

105.2

115.8

125.3

customers—

46,702,575

customers—month

STRUCTURAL

INSTITUTE

OF

46,987,429

46,167,336

$797,337,000
55,289,179-

$811,224,000
55,255,546

$762,231,000

of

—

FABRICATED

90.7

*112.9

.June 17

Meats

*95 2

113.1

.June 17

—

95.4

.June 17

products

'

omitted)

(000's

ultimate

Number of ultimate customers at

119.0

;

INSTITUTE—

March

Commodity Group—

All commodities other

of

EDISON ELECTRIC

.May 31

foods

'9

(SHARES):

saico—

sales

Processed

'■>

stocks at end of period (tons
pounds).
'
2—

of

Month

Without

sales

Farm

8.486

30,480,000

(tons of 2.000 pounds.)

A.

2,000

SERVE

sales

—

'

*

-

'

•

(net tons)

tons)

(net

Adjusted for seasonal

Other

LABOR

10

3C3.360
84,404
270,461

to fabricators—

DEPARTMENT

354,260

Short

All

"

.

(net tons)

and lignite

(tons of 2,000 pounds)

In U. S.

TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS

WHOLESALE

22

(net tons)
coke

Deliveries

$34,047,50*1

May 31

Total

63,310
6,157

;

:

"

Refined

1,043,636

May 31

round-lot

129,658

45,296
2,729

(BUREAU OF MINES)—Month

(tons

Crude

8,126

sales

FOR ACCOUNT OF MEMBERS

199,735

81.556

Refined copper

Round-lot purchases by dealers—
Number of shares

129,G03

,

—

INSTITUTE—For month of May:

816,839

Other sales

Total

anthracite

(net tons)—

coke stock at end

May 31

sales

341,285

,

.

1,420

Copper production

;

1

(net tons)

America

Icoke (net tons)-

May 31

other sales

tons)

712.252

181,466

409,860

-

America

1,053,537

588,502

-

(net tons)

(net

803,194

769,968

1,

'

Pennsylvania

Central

and

813,337

•

930,477

—

_

of

973,338

$1,856,731

$1,583,305

$2,313,675

1,040,077

$36,421,697

May 31

value

12,220

;
■

:

(BUREAU OF MINES)—Month

Oven

Oven

sales

4,728.000

$52,552,000

-

1,340,337

—

Pennsylvania anthracite

Round-lot sales by dealers—
of

Asia

Beehive

May 31

March:

North

May 31

Customers'

Number

of

exports

EN-

L-J.

tons)

Production

May 31

Customers'

6,430,000

15,686,000

~

—

——

of May:

dealers (customers' purchases)—t

shares

.

.10,820.000

~

—I—

(BUREAU OF MINES)—

Bituminous coal

STOCK

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

Dollar

To

—

—'

municipal

COAL OUTPUT

COMMISSION:

value

$14,888,000

$83,977,000

.

Undesignated

1,832,440

sales

1.200

Month of

—

-i—;

•

To South

transactions for account of members—

DEALERS

and

To Europe

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

IN THE

BRADSTREET,

'

construction

S.

construction

S.

To

102,450

May 31

EXCHANGE

(NEW)

&

construction

(net

371,930

98,480

—

„

..

11,329

" $56,246,000

•—

May——11,943

Federal-

15,800

268,100

—May 31

sales

Total

..3,812,000

NEWS-RECORD

COAL EXPORTS

211.520

320,090

day 31

May 31

Other

liabilities

(000*8 omitted):
U.

Slate

initiated off the floor—
—

82

1,458
$29,538,000
7,673,000
23,657,000
9,612,000
13,497,000.

10,771,000

;

STATES—DUN

CINDERING

Month

sales

Short

—J—

——

INC.—Month of

1,043,990

1,132,640

1.193,750

May 31

round-lot

Total

liabilities—
service

UNITED

Public

purchases

Total

Total

I

INCORPORATIONS

BUSINESS

May

day 31

sales

liabilities

liabilities

Private

sales

181

254,633

271,307

290,704

—.day 31

purchases

132

600

209
116

'

1,341
$17,912,000
5,472,000
18,279,000

liabilities

liabilities——————

Commercial

Total

May 31

205

139

737

"

—.

424.2

-

5,259,000

^
257

;■

;

TotaL number

4.67

'

.day 31

Short

983,755.000

15,061.000

'

;

—

4.10

sales

Total

177,004.000

501,029.000

4.04

jiuy 31

Other transactions

239,205,000

659
Construction number.-—207
Commercial service number
108

4.32

sales

Total

247,295,000

Retail number..——ztL'..—.——

3.69

1,248,990
219,690

sales

Other

58,008.000

Manufacturing number
242
Wholesale number—125

3.89

purchases

Short

403,568,000
130,730,000

.

BRADSTREET,

FAILURES—DUN &
INC.—Month of May:

BUSINESS

Other transactions initiated on the floor—
Total

$227,394,000

355,238,000
129,732,000

—
—————-

goods stored and shipped between
countries.—
——:——

on

foreign

3.87

iay 31

i

$278,125,000
415,548,000
12,241,000

.,

95.47

2.64

3.04

Based

96.54

'

3.90

—

—

—

credits.—

exchange-,

4.30

sales

sales

.

$296,197,000
396,429,000
15,709,000

—

CIVIL ENGINEERING CONSTRUCTION

sales

Other

•

86.51

92.06

■'

1

••

,

——

—i——.

shipments
warehouse

4.61

/lay 31

89.693

112,693

BANK

—

——

4.02

Total purchases

96,855

70,214
52,684
221,171

J-— 1,440.600,000 1,479,417,000

II—

4.26

14
14
14
14

./'v

..

OUT-

ACCEPTANCES

———

_

Domestic

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

Total

^
•

— FEDERAL
RESERVE
YORK—As of May 31:

NEW

10.000c

24.000c

MEM¬

OF

5,340.602

-

(tons of

STANDING

11.500c

10.500c

10.000c

INDEX—

ACCOUNT

5,752.074

'

-

'•

DOLLAR

4.54

June 20
FOR

97,006

14.000c

11.300c

3.98

100

TRANSACTIONS

ROUND-LOT

32,906

at

4.54

June
-June
June
June

OIL, PAINT AND DRUG REPORTER PRICE

8,824

30,386

'

pounds)—
—
—J,
71,018
(tons of 2,000 pounds)—51,519
end of period (tous)L—___—l
- 240,670

28.350c

ASSOCIATION:

of period

5,163

INC.—Month of

•'

'

4.27

.—

^,370

278-

3,534

Shipments

Total

(tons)

Percentage of activity
Unfilled orders (tons) at end

•i-484,000

i 1,372

by 388

transported

output all grades

smelter

zinc

June 24

(tons)

Orders received

Production

311.116,000

37,066,000

,

INC.

T

INSTITUTE

ZINC

AMERICAN

.June 24

.

NATIONAL PAPERBOARD

*295,594.000

11,748,000

Feb. 30——

STEEL

Shipments

closed(

STEEL
*
'

§4,202,840

(AMERI¬

' ' "

CONSTRUC-

~

TION)—Month of April:
Contracts

tonnage)^—estimated

208 161

195.9^0

323,574

*

(tonnage)—estimated

GOV¬
ERNORS
OF
THE
FEDERAL
RESERVE
SYSTEM—1947-49=100—Month of May:
Seasonally adjusted
;*
Uivadjusted
——

336,598

403,576

362,192

INDUSTRIAL PRODUCTION—BOARD OF
•Revised
as

of Jan

1,

figure. ([Includes 950,000 barrels of foreign crude runs.
§Based. on new annual capacity of 140*742,570 tons
1958, as against Jan. 1, 1957 basis of 133,459,150 tons.
tNumber of orders not reported since introduction of
tPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds

Monthly Investment Plan.

-

one-half cent

a

pound.




/-'

-

- -

•>

'
,

'

'

^

12^
127

/-/

„

„

19,492,000

"

tons)

4,00

MOODY'S COMMODITY INDEX

26,320.000 '

23,232,000

*21,924,000

.

—

ASSOCIATIONS,
;

freight

general

.June 24

Group

v33,000

-—5,443,539

—

—

A]A,il:..;

June 24

June 24

Public

INSTITUTE—

/

25,573,000
-

31,366,000

cars———-—.

TRUCKING

AMERICAN

——

Group

239,214.000

,

24,000

•'

011

month)—

of

(end

Stocks

11.500c
1

t?

21,851,000

"

delivered..
v
—'
order and undelivered

cars

..June 24

Baa

Railroad

4

22,000

•

YIELD DAILY AVERAGES:

BOND

MOODY'S

22,697,000

"

;

CAR

freight

cars

of

31.150c

21.575c

23.150c

V-"'

'

24.225c

24.775c

Mf

May:
new

freight

Backlog

Slab

at

Aaa

of

for

Orders

S56.17

Lead (New York) at

(delivered) at.
L—
—
(East St. Louis) at——
(primary pig. 99% ) at
Straits tin (New York) at

,190,651,000

24,652,000

.—

(barrels )__—_^.2J

(barrels)————i-.--'

stock

RAILWAY

carriers

25.125c

.

Government Bonds
Average corporate

all

2,000

'

'

284,111,000

QUOTATIONS):

Aluminum

cT'

5.670c

290

1

'r

i

264,820,000

219,372,000

"219,146.009
i"194,472j000

imports

Decrease

139

12,337,000

n;i7^49,752
"
1

product

Indicated

New

11,316,000

; 9,792,323

.;

-'4

(barrels)
:
imports (barrels).———IZconsumption domestic and export

oil

Crude

AMERICAN

i

4,448.526

.*

(barrels of 42 gal-

gasoline output
output (barrels

—Month

-June lb
June 18

Louis)

Natural

Refined

241

24.775c

(St.

.

4,372,971,-;

INSTITUTE—Month

49,143,000

-June IB

Lead

~—

vi

^y'-..."i&'*'■■■

March:-; .-/•

-Benzol

A 136,014,000

Electrolytic copper—
Export refinery at

.199,200

*

/-;*5,532,991

iia.j 6,308,000

April.^—,

PETROLEUM

135,157,000

196,178,000

11,941,000

DUN &

June 17

——

284;200 '

229,600

produced

Domestic crude oil output (barrels;
"

v

185,672,000

241,161,000

135,188,000

294,687,000

138

June 19

at

castings

for

Total domestic production

$370,829,000

2->0,379,000

June 14

(per gross ton)
steel (per gross ton)

refinery

of

•;
'

.

$505,535,000

steel

and

of

AMERICAN

612,000

—

(E. & M. J.

27..200

INSTITUTE:

STEEL

AND

10,120,000

Pig iron

Domestic

611,061

385,000

—

6,901.100
6.739.400
r - 22.50Q

8,346,100

-

V* 8,034.700

'

746,122

AM$Xt

7,270,000

AGE COMPOSITE PRICES:
Finished steel (per lb.)

Scrap

80,771,000

62,810,000

388,000

IRON

METAL PRICES

93,037,000

63,393.000

Juue *.1
INDUSTRIAL)

(COMMERCIAL AND

FAILURES

96,694,000

Month

"

26,787,000
106,171,000

*7,775,000

kwh,)

Electric output (in 000

;

20,306,000 '

475,000

ELECTRIC INSTITUTE:

EDISON

;

'

tons)—Month of May—

Month

(U. S. BUREAU OF MINES):
coal and lignite (tons)

Pennsylvania anthracite

198,307,000,;,

IRON

ingots

(net

_

COAL OUTPUT

Bituminous

gas

•:

Shipments of steel products (net tons»—-

191,317,000

8,370,000

—~——

'

,

-June 14
.——June 14

—

municipal—V*-——

and

Steel

1,722,000
,

$429,875,000

S.

Private

*

(M

Mixed gas sales (M therms)—AMERICAN

11,846,000
11,650,000,
6,558,000 :: ■V.'- 7,645,000

—June 19
-June 19
—-June 19
June 19
Junt'19

construction
construction

U.

1,881,000

1,725,000

ENGINEERING

—«

v

,

'"Ago

:,/• :Month

.

•,

7,727,000
27,254,000

-June 13

freight received from

7,294,115

7,479,000

25,200.000

ASSOCIATION OF AMERICAN RAILROADS.
Revenue freight loaded (number of cars)———
Revenue

6,261,885'"

6,235,935
7,690,000

--M

.

;

r>.

:
7,120,900
therms)—; 6,876,200
sales (M therms)—<-21,100

sales

gas

of

Year

Previous

(M therms )„—jL.

sales

gas

Natural

*27,165.000

(bbls.)

fuel oil

Residual

Total

'

'

April:
2,150,000

1,567,000

6,334,885

—«———June 13
-June 13

~—

oil (bbls.) at

Distillate fuel

*1,751,000

June 13

(bbls.)—
Residual fuel oil output (bbls.)
Stocks at refineries, bulk terminals, in transit, in pipe
Finished and unfinished gasoline (bbls.) at
Distillate fuel oil output

Kerosene

§1,685,000

AMERICAN GAS ASSOCIATION—For month

-

of that date* ;

are as

Month

:

84.0

58.1'

*64.9

(17,659,000
26,960,000
1,867,000

13

.June 13

output (bbls.).

Kerosene

Ago

Ago

§62.4

-Manufactured

—.June 13-

stills—daily average (bbls.).
Gasoline output (bbls.).
to

runs

ofJune

average (bbls.

gallons each )_

42

Crude

Week

Week

June 29

either for th#-

are

Latest
'

AMERICAN IRON AND STEEL INSTITUTE:
Indicated Steel operations (per cent capacity)

■

production and other figures for thfc

cover

that date,

on

Thursday, June 26, 1958

.

.

Dates shown in first column

month available.

or

month ended

or

tabulations

.

■

*

-

,12-7

144
143

/

Volume

187

Number 5754

.

The Commercial and
Financial Chronicle

.

.

(2899)

4t

President

Public

Kappel of American merger of these
two-companies.
Tel. & Tel., interviewed
With Coffin & Burr
recently The coordination of the railroad
by Telephonies, has stated that the
facilities is
(Special to The Financial
said
to
have
pro¬
Chronicle)
Bell System needs an
8% return, gressed
greatly and is possible.
and
General Telephone
BOSTON, Mass. — Warren K.
is
also The
Chicago, Milwaukee, St. Paul
seeking this rate of return. A new &
Butler and Chenery
Pacific has done better than
Salmon are
vice-president in charge of "rev¬ the
Chicago & Northwestern, but now affiliated with Coffin. teBurr^
enue requirements'*
has been ap¬
earnings of both are down.
Inc., 60 State Street. Mr. Butler
pointed to handle rate
applica¬
In the Southeast
earnings have was formerly with; Mann &
tions.
Gould,
been lower but

Utility Securities
By OWEN ELY

General Telephone
Corp.
General Telephone is the second

important
position
in
Florida,
Peninsular had not been
aggressive with respect.! to
rates, the
small increase in 1952
being the

largest telephone system, with totelephone revenues of $297

tal

million plus $212 million sales
by
manufacturing and miscellaneous

subsidiaries,ror
million

for the

March

31.:

total

a
12

of,$509

months

These

first since 1920.

ing less than

ended

revenues

new

the

6%'

they

Telephones in service as phones.
31, totaled. 3,409,000.
In the

March

T

Sr^oWS^inde^^en^nhones
S^\ and

the U.

rni

the
is preparing a;
application. General

The

11-

1'

rry

.

covers

a

past

,

Thp 9vQfpm
rne

,

hi?

from

1937

e-

times
times

a<?
as

rreat
great.

rev-

ahd

million

Thi«
This

,

ornwtii
giowth

other

u

factors

have

Theodnre
Theodore

Oarv
Gary

*
&

C.nm.
Com

in

California
$11.2 million

in 1955.: This System had an
extremely complicated setup with
pany

asked

80 corporations. The 21
Gary
telephone subsidiaries in this

for

some

to

-the

more.

$13.4

have

They
in

share

benture

for"

have
other

of

1958.

'

"

-S.

,*7-%

-

leiepnone
two

coip.

convertible
well

as

de-

several

as

be

by

25c

30c,

or

it

is

The

stock

common

selling

recently

pays $

has

been

y

around

u

50,

and

Anrf

Pnce-

operations

this

been consolidated

in

.

....

the

,

initial

shakedown

is

being

completed.

/
'
acquired with the Gary
System was control of AngloCanadian Telephone, which controls British Columbia Telephone
and Northwest Telephone in Canada and the Dominican Telephone
Co. British Columbia is growing
very fast, and with frequent stock
offerings Anglo has had some difficulty in maintaining its equity
#

.

Also

u

*ri

fleeted
cision.

the Bell Telephone deBritish
Columbia
Tele-

in

and

is

currently

asking

for

have

men

DIVIDEND

antici¬

Virginian Railway, have

particularly

hurt

ex¬

by

the

COMMON

coal.

clared
3Q

a

cents

quarterly dividend of
share payable on the

per

Common. Stock of. the Company
August 1, 1958;. to share¬

on

holders of recordi
business on

high

hopes

export

\ The

nation's

railroads

seem; to have made

jn impressing
nancial
Thjg

some

finally dentally,
progress

Congress the fi-

on

vincent T. MILES
June 23,1958

held, is
,

cur¬

levels in the immediate

The United Gas

future.

Carloadings have been showing

Improvement

week-to-week improvement

the

Company

for

probably
hit

by

have

current

Senate

lief.

The

House

of

give them

re-

item which appears
to have the best chance of
success
is the repeal of the excise
taxes
one

travel

passenger

rates.

:

and

freight

and

actecj

as

Chicago & St. Louis)
in

the

be

for

black

been

mjgbt

attract

a

would
in

on

indus¬

DIVIDEND NOTICES

declared
1958

and

and

A

have

Dividend

of .seventy-five

($.75) (Canadian)

(New York,

declared

A
per

quarterly dividend of $1.0634
share on the 434 % Preferred

Stock has been declared
payable

October 1,1958 to stockholders of

per

August 29, 1958.

J. H,

Mackenzie, Treasurer

Philadelphia, June 24,1968

cents

share has been

the

Capital Stock of this
Company, payable September 8, 1958,

been

probably

first

Smelting Co., Limited

on

to shareholders of

six

of business

year.

on

record

the close

at

August 8, 1958.

J. F. McCarthy, Treasurer.

measure.

trunk

ern

lines

have

in

effect

fares.

additional

This

the
^

roads

This

been

CONSOLIDATED

off

NATURAL

from a year ago with
reporting large deficits.

passen-

list

includes

the

GAS

COMPANY

Pennsyl¬

30

vania

Rockefeller

New

York

Plaza

20, N. Y.

Southern

Dividend No. 42

-

telephone

company

this carried with it

Florida

in Florida, and

temporarily but gave Geneial

-m

If

the

is

an

nAA|,

AREA RESOURCES BOOR
I explains why the
we

offers

so

3%

tax

eiiminated,

faced

Qn

freight rates
has widespread

it

with

long

haul

charges.

serve

of the most controversial
issues is the proposal to set aside

muth

a

of

sum

roads

industry.

$700,000,000 for loans

in

need

of

cash

to

to

meet

among
other
things,
payrolls,
maintenance and capital improve-

Write for

ments.

Both the New York, New
Haven & Hartford and the Boston
& Maine
obviously could use addi-

FREE
COPY
Box 899,

tional

Dept. K

An official of the B. & M.
already
has
stated he
would
like $21,-

Salt lake

City 10,

at

the

000,000 to construct

Utah




funds

freight
that

yard.

this

is

a

present time.

a

new

Rail

modern

circles

rather

feel

substantial

amount for
ever,

if

capital
mean

only one yard. Howfunds were granted for

improvements,

more

purchasing
would
„

be

economy.

it would
employment and more
by

an

the
aid

rails
to

which

the

entire

These two roads, inci-

this

of directors

declared

day

a

(50^)

per

share

the

capital stock of the Company,

severe,

August
of

15,

1958

record

close of business July

at

to
the

15, 1958.

R. E. palmer, Secretary

June 25, 1958

Grande Western income has
n°t declined too sharply, but these
roa<*s have been hurt by the drop
service

area.

Northwest, Northern Pa-

has

had

the

advantage

over

Great Northern because of substantial other income from its vast
land
holdings.
As a matter of

fact, it
of oil,

is

believed

gas

and

the

timber

financial

end

of

the

proposed

payment

of

dends:

tborej

4.48% CONVERTIBLE SERIES
Dividend No. 45
28 contt

RAILWAY COMPANY
Dividend Notice

per

thare?

PREFERENCE STOCK,

4.56% CONVERTIBLE SERIES
Dividend No. 41

28'/j

At

meeting of the Board of
Directors held today a dividend of
seventy-five cents per share on
the Ordinary Capital Stock was
declared in respect of the
year
1958, payable in Canadian funds
on August 1,
1958, to shareholders
of

a

record at 3.30 p.m. on June 20.

1958.

IBy order of the Board.
T. F.

Turner,
Secretary.

this

property is somewhat of a stumbling block in working out the

the

following quarterly, divi¬

COMMON STOCK

CANADIAN PACIFIC

potential
on

the

PREFERENCE STOCK.

but earnings of Southern

In the

authorized

Dividend No. 194

these roads receive large "Other
Income" which aids earnings,
Western Pacific and Denver &

cific

The Board of Directors has
,

payable

stockholders

California have been

in steel production in the

dividends

60 contt pov

Pacific, Atchison, Topeka & Santa
Fe and Union Pacific have reiriained at fair levels. Of course,

California
Company

regu¬

on

have been showing deficits!
in

Edison

quarterly dividend of Fifty

Cents

some

Floods

One

opportunity
to

has
lar

In the Midwest there have
been

dustries

area

The board

surprises. The Chicago &
Eastern Illinois, Chicago & Great
possibilities. It might place some Western, Monon and
Minneapolis
companies in a better competitive & St. Louis are well in the black.
position by giving them lower On the other hand,
Gulf, Mobile
rates than at present. It would & Ohio, Illinois Central, Missouribe of great benefit to those in- Kansas-Texas and Missouri Pacific

Telephone

The Peninsular acquisition diluted earnings
m

business.

12% interest

a

share, has been

payable September 30,
stockholders of record

to

August 29,1958.

Hudson Bay Mining

the

Montreal, June 9,

1958.

per

the Common Stock, par

on

value $13.50 per

'DIVIDEND NO. 75'

will
months of
In fact, it is believed
Nickel
Plate will maintain

this

the

Elimination" of" The"tax *on""pas- substantially
seng€r business
be
a
reduction

depends

automobile

quarterly dividend of 55c

share

seeking to

War-time

a

course,

A

record

the Nickel Plate

the

.

The f.oads haye been

Of

of

business

Repre-. earnings of the Baltimore & Ohio

some

vacations.

and

lower

closing

earningswise

steel

be

conditions.

East

and

to

DIVIDEND NOTICE

July and

will

tries for the balance of the
year.

plight of many of them.:
The pattern of
earnings through6""»v«6«brought out when legis- out the country has not
been all
was introduced into
both' one of deficits.
In the

sentatives to

;v

hardest

the year.

probably

principally

was

lation

on

Divergent Earnings

the close of

coal, for

were

not expected to recover
from
rent low

at

July U,t1958»

sharp

Trwaturer

The

movement of bituminous

which

STOCK

The Board of Directors has de¬

in the export shipments of

bituminous

Railroad, New York Central
gerg particularly from the private System, Erie and the
Lackawanna,
rate increase in-order to sustain
aut0mobile.
This
would
be
of The Delaware & Hudson which is
earnings.
i
some
help in reducing the con- in a special position as compared
Last year General also acquired stant
passenger deficit by increas- with the others also has been docontrol of Peninsular, the leading
jng the declining volume of this *ng relatively well,
phone

QUARTERLY

an

peake & Ohio, Norfolk & Western

„

American" attitude of the present
Canadian- Adrmnistration, as re-

in

occasion in the
a recession for some
time.
The rich soft coal
roads, Chesa¬

the $2 annual dividend rate and
eliminate the 10% tax on
pas- will he one of the few to maingenger fares and 3%
on
freight tain dividends. On the other hand,
interest. Another -recent problem
rateg which were
originally en- earnings of the other major EasthaS
been
the
somewhat
anti-

i

plants

event of

the

The Railroads' Future and

u

move, now thai

traffic
such

much

single one-story plant on a former
golf course.
It is expected that
.....

Many

plants

a

substantial^ec^ononmes willbe^obtanied from this

inefficient

pated

due

through a large
of- buildings - in
Chicago,

now

more

August

for-.

company,

older

ings month of

scattered

number

have

of

LONG ISLANDUfiHTINfi CQMPM!

and June should be the best
earn¬

"General
gained control of- the huge. Auto¬
matic Electric Company of Chi¬
cago, -which
manufactures
tele¬
phone and related equipment. The
merly

DIVIDEND NOTICES

the North and
operate the newer
efficient ones in the South.

some

Gary,-

■

,

more

earnings ratio is about 16.2, based
the consolidated earnings,

1

economical

issues as wen as several drop

diluted

*

.

•

it had been found
to
shut down

cases

more

perienced a sharp drop in traffic.
They have been hurt by the
drop
nas in activity in heavy industry and

estimated.

on

probably been liquidated.

about

s'houTd all" thesflssues be'fuUy
footed' stare eatntogs"

for

13

reach

earnings moderatelv

issues

7

re-

filed

million

in many

increased number of shares.
Telephone
Corn
has

General

outstanding

for

now all been merged;
states by the end of the
year. They
corresponding General Tele- received
$2.4 million increases last
phohe
subsidiaries,
and
many year and
$2.2 million thus far in
other, inactive
companies
have

acquiring

60%

over

to

„

General

company

have

plants in the South
generally and

nil.sndie earnings moaeiateiy on
on

an

over-

romnanv

Thev

and

-n-

lift

eradnallv

little

a

stock
:

common

with

•In

and

year,

k

f
•

that many industries in
recent years have constructed
new

nf

?+ year, which, if ^p.7 million
milll0nK ?lal^strealized, would
last

19[tf

states; and also expect to ask
$10-14 million additional in

,

country have

last

evad-'

started another
campaign

partly due to mergers, of- rate^ increases
which the largest was! the
acquis!°f
of

substantially

for

gradually

.

8^'

i

,

^

has

was

•

i

has been

tion

W

exP®c^.sa!es
subsidiaries^to
better in 1958

'

'

•

•

the fact

1958'

IhJlaifin
PrpSnt
tfcn

P

than

date increased expenses

-

23

1958

income

3.8%

wa<?

North. One factor which
has contributed to
this is not only
the growth in
this district but to

n^'

«

manufacturing
be

General Telephone

-Si"?
® t.rom .$L3
4: } reduced the return
to-the'present'figure about 6%
According v

inorr

Q7o

the extent

the

as

^****^resul^o
ani

hi/hpr
inf rati

,

^a^ftSSse^to 7^7%Sn
dH f f
'2

had

bj|tem nashaci Since»fhat

phenomenal growth',record,

•

,

i.

30 States-and has $1.1. bij^

ennos

m

_

^ lotes. In 1949 only
System- beimrearned 'but-thi<!

t.

General-Telephone

lion in asspt?
liorr in assets,
a

,

a

^ .iAcrfased earnings sharply by manufacturing' profits may be
vestTf capital^ tniougn incieasts ffablished to the second half of
ytbieci capnai,
the year. He expects net

the

*.

*

/-i

4"%

has

rpvpnups

-

«mm

firstfour^months^of
.months ot

the

highest; in the System's history is currently
negotiating only one
and were
up $9 million over Dec. small
merger involving 8,000 tele-'
31, 1957.
of

enjoyed

JSJL ♦£

are earn-

capital,

on

not to

Telephone

iq4q"w

rilirjn«

management

rate increase

were

As

General

"fabulous" gain in share
earnings

cents per share.

The above dividends-are
pay¬
able July 31, 1938 to stock¬

holders

of

record

July

Checks will-be mailed

5.

from

the Company's office in Los
Angeles, July 32,
p. c.

hale,

Treasurer

The Commercial and Financial Chronicle

!

4E

(2900»

Thursday, June 26, 1958

. .

.

Electric

Institute,-

-

on

Fare-Ways

J Tift

fill

M

—

i.?

; *

'

-

Y.f-L

j

Compilation of rail*.

Chi'-.

land 1,000 cities of the?
United States, Canada, and sey^
"eral pointsrbeyond
the conti¬
nental
United
States — Fare?-

UPNOODLE SECURITIES

M• Cr Cv

Jlm. 11/lf/

Third

cago

,

Capital

-

bus fares between

air and

from the Nation'*

Edison

—

750

Avenue, New York 17, N.

*PapeiV-$1.5.0.

Beluni-the-Scen» Interpretation*

1957

the Year

tin for

BUSINESS BUZZ

Ways Travel Center, 7 South Ed¬
ward

and

more

a

as

are

that

the Joint Economic Committee
are
fresh estimates from
the
United
States Labor
Depart¬
ment's bureau of labor statis¬

tics., In a report to the White
House, the Department says that
housing starts in May in this
country rose to 105,000, some¬

rency

seasonally. The
starts last month compared with
$5,000 in April and '103,000 in

Chairman

May of 1957.

§ SALE

measure

the

ciations

in the Nation's

sources

of the new

About two-thirds

413,000 units were be¬

this year

approximately

gun, which was
the same for the

corresponding

period in 1957.
.V'

i

'

;

In

to

staff in discuss¬
increased
mortgage

"Housing activity in the sec¬

.and

increased

be

the other hand, as long as em¬

ployment and income (particu¬
larly Wages and salaries) con¬
tinue to decline, consumers may
expected to continue to post-

home purchases in spite of
increased availability of mort¬

pore

funds."

availability

'

.

r

ciations

all

'

.

country

reducing

At the

same

associations

savings

are

reducing their interest rates on
savings.

Numerous insured

sociations

paying

that

and 3.75% interest
pulling in their horns

4%

rates

are

and

reducing

the

interest

ZY>% effective July 1.

to

about

5,000,000

committee

speculation

was

:

private

Future

that

believes

be

to

de¬

a

Institute's

period¬
a de¬

lieves that

quarter

the

of

of

that

sult in

meet

families

are

will

re¬

decreasing demand.
type

the

housing

of

demands

smaller
will

be

and

needed.

of

the

older
More

The Democrats who

from their homes to apartments

ture

look

to

least

at

ber

like

would

gress,

of

branches

for

the

ness

consultant

On the other hand. President

advisers
is

and

his

that

feel

land,

there will

because

be

less

of

said

the

greater

The land
country

is

moving toward better use of the

economic

York

22, N. Y.—paper.
Association, Depart¬
of Coal Economics, South¬

ment
ern

Building, Washington 5, D.C.
Janis

Harold

Brothers,
New York

—

East

49

33rd

—

The

Johns

—$2.50.
Electric

over

authorities

Hill,

rife that Presi¬
veto

the

would

be

quarter

that

,

will

be

series

made

on

proposed.' legislation -before
passes

of
the

it

Congress and is sent to
Eisenhower for. his

At

"plateau"

af

reached

in

the

Utility

Industry

in

economic
next

a

for 1,100,000

signature.

government

It

is

seems

the

Administration

Very much aeainst

the

10 %

of

as

things pertaining to public

in




some

mild

arm

month.

President

Railroads—Part

Testimony

of

Railroad

others

—

Officials,
U.

S.

and

Government

Printing Office, Washington,
D. C.

TRADING MARKETS
American Cement

Botany Mills
Wurlitzer Co. Com.

•

,

-

will

shot
take

in

the

and

~

Fashion

Park

Indian Head Mills-

,

United States Envelope

Morgan Engineering

Carl Marks
FOREIGN

place

bill
classified and other
workers

-

&

Ho. Inc.

National Co.
Cormac Photocopy

The pay raise

salary increase retroactive

20 EROAD STREET

communities

•

LERNER ft CO.

NEW YORK 5, N. Y.

TELETYPE NY

1-971

Investment

10 Post Office

I

Corp.

SECURITIES SPECIALISTS

TEL: HANOVER 2-0050

the

of Jan. 1, will have its effect

July. .Many

the

the

United States: Statistical Bulle-

third

and an upturn would
in the fourth quarter.

least

•—

-

Subcommittee weeks ago

predicted;

36th
*

of

Government

Hopkins

Retroactive Salary Increases

changes

4:

Md.—paper

Harry

before

East

16, N. Y.

Brotherhoods, Private Shippers,

Street,

Byrd and the Senate Fi¬

lihood

whole

Problems

testi¬

Senator

of

12

the

come about

a

Association,

country
the recession hump. Tne

consensus

A

cloth—$6.

Design of Development—Jan Tingergen

.

Street, New York

6, N. Y.—cloth—$6.

Press, Baltimore 18,

;

.

Treasury of Banking and Busi¬
ness Research—American Bank¬

&

Harper

33rd Street,
N? Y. (cloth),

East

16,

Present Day Banking 1958

Business Communication Reader—
J.

49

$3.50. ft

—

Dimock—Harper &

York

New

ers

Coal Data 1957 —Na-

tional. Coal

consultant

The

efficiency all around.

congressional elections.

Eisenhower

future.

demand for industrial and busi¬

after the Novem¬

until

the

also predicts

pic¬

unfavorable

bit

a

in

Con¬

Money and Credit—

on

Bituminous
-

Committee is controlled by the
both

mission

be¬

older people are going to move

control

Brothers,
National Com¬

a

opment, 711 Fifth Avenue, New

marriages

Administration

of

Marshall E.

Announcement of

—

Association,

Street, New York,
(paper), 50 cents.

Philosophy

plus the
occurring

deaths

younger,

Of course, the Joint Economic

Democrats.

N. Y.

Committee for Economic Devel-

different

A

to

a

Newcomb

demand,

Bankers

36th

East

12

change in the type

a

than

faster

calendar

next

Robinson

housing

fact

y'y--

Management

Money

American

.

cline.

—

poratioiv 1230 Avenue of the
Americas; New York 20, N. Y.

Land

going

Land

Urban

un¬

request)-.

on

Soaring Trade with Venezuela-r-Creole Petroleum Cor-

*

in¬

consulting economist in the cur¬
rent issue of "Urban Land," the

or

The

pending omnibus housing > bill.
However, there is a strong like¬
that

copies

25

'

creasing demand for urban land
in the future?
A Washington

7%

force

persons.

there

Is

Wr

—

(paper).
Urban

of

The committee goes
on
to say that a less rapid re¬
covery could be accompanied by
as
many
as
7,000,000
unem¬
ployed or more than 10% of the
civilian labor force, in the first

nance

Capitol
will

by

jobs

r>nnpr

scene" inter- P
~
(quantity ;prices . P request);
onschools, libraries and organized
study groups may receive up to

-

H

Pending Housing Bill

dent: Eisenhower

even

employed

the

m-1 Vi

99

Vnrh-

.

Our

'

ical, thinks there will be

Flood

on

opment, 711 Fifth Avenue, New

>,

attractive to many people

employment in the first quarter
of 1959 may amount to about

fying

;

*■

Meanwhile,

pay

new

year.;
will make

now

unemployment
labor

civilian

the

of

as¬

currently

are

The

past

more

year.

building

slightly

been

14.

dustry.

this year will average about

increased

the

over

their interest rates.
time

'

the

home

of

building and loan asso¬

money,

have

,

of

,

4.

.

increased !

raise

5,550,000.

Because

-

,

has

Government

the

Economic Commit¬

The Joint

tee believes that

gage

'-t:

Personal

independently as in other post¬
war recessions.
If employment
and incomes begin to rise, con¬
sumers may draw upon the re¬
cently
augmented
supply
of
mortgage
funds
to
purchase
homes-at an increasing rate. On

be

ment.

26

leave- of

(
- quest).; Jv ; ft'tyft.y: 7' .
>
New Role of the Soviets in the
there should be
''..'V; World Economy—Michael Sapir
orderly urban develop¬
Committee for Economic Devel-

said,

he

more

get paid

now

sick

annual

eral

$30,000.

to

end,

[This column is intended to refleet the "behind the
- pretation front the nation's Capital
The number of applications for
and may or may not coincide with
would-be workers of the Fed- 5 the "Chronicle's" own views.]

Unemployment Forecasts

of

trend

part,

er-Drive,; Chicago 1, 111.—paper
—50c
(quantity prices on re-

30% between now and 1965
than it was in the 1940's. In the

depend

employment
income rather than rising

the

Foundation, Inc., 121-West Wack-

working days, plus liberal vaca¬
tions and short working hours.

-

limit

that the insured mortgage

to

with

„

the

Plymouth

14250

Corp.,

Melchior Palyi—Heritage

—Dr.

purposes.

Therefore, he said the increase
of land use may decrease 20%

of gov¬

thousands

well, and have good overall jobs

mortgages from $20,000 to at
least $22,500.
The Eisenhower
administration
is
advocating

said:

ond half of the year may
on

provision calls
$400,000,000
for
housing
of

Motors

production

transportation

and

Federal Government workers,

ingly assured of approval is an¬
other provision that would in¬
crease the limit of FHA insured

and House, the

the

for the most

urban land for both

re¬

action when the

depending on
locality, will each receive
from $150 to $500 in back pay.

starting July 1.

campuses

miles to the

to* get more

Road, Detroit 32, Mich.—paper.

the

another
the

Money:-

for: Your

gallon from your car—American

ernment workers,

colleges and universities. Seem¬

Wright Patman and
bis colleagues on the Joint Eco¬
nomic Committee of the Senate
ing

of

on

'

'

Nationalizations—Ten. Years Later
the nation will feel the

over

hundreds

units

Chairman

funds

is

pay

Still

!

Mileage

How

ingenuity during my absence, Figbar,
I'm afraid you still have a lot to learn about the
brokerage business!"

admire your

troactive

'ft 'ft.,-

Money

memorandum

recent

a

but

for
■"

•;.

of Mortgage

Plethora

"I

1

.

Legislature — New York
Banking Department, 270

paper.
More

cal year

months of

During the first five

16, N. Y.—$6.75.

Broadway, New York 7, N. Y.—

given an opportunity to buy the
housing units they occupy. The
bill also provides that 35,000 ad¬
ditional public housing units be *
constructed during the 1959 fis¬

loan approvals
by the FHA and VA. Privately
owned
starts
totaled
98,000.
through

begun

&

the 1958 session of the New York
State

opposed to it, the pending meas¬
ure would provide that tenants
in
public housing would be

housing unit starts in May were

Wiley

Summary—Resume of
the banking bills enacted during

insurance

Although the White House

York

New

State

for this session.

slowing down.

the verge of

on

ft

.

and Currency Com¬
mittee has shelved the proposal

if the

Psychology,

Legislative

Banking

easier money is

toward

switch

Equa¬

Examples*

Sons, Inc., 440 Fourth Avenue,

BarsonBosemntSwmfs

However, the Senate

program.

v.

Sociology—John

and

government char¬

a

.

Difference

to

Economics,

"from

and loan asso¬
advocating
and

home mortgage

tered

it

say

are

sponsoring

Capital indicate that the trend
toward easier money will con¬
tinue for an indefinite period.
However, FHA officials
is a little early to tell

"77—

.

building

The

Y.—paper.

tions with Illustrative

REAL

and Currency Committee,
expected to have the Senate
ready for floor consid¬
eration on or before July 4.

A check and

various

ft

ing

became available in May.
double check from

money

N.

Introduction

is

mortgage

more

on petroleum research
engineering—Esso Research
Engineering Company, 15
West 51st Street, New York 19,

Senate Bank¬

of the

•

formation

ALL SECURITIES

Fulbright, ;

William

J.

:

: :

Background in-

and

Fourth holidays.

July

Senator

—

and

Committee is not sched¬
to start its hearing until

after the

:(

and

More

House

uled

above

what

World

the

Action

Ideas in

50% OFF

each year since
War II.
This year
Banking and Cur¬

such legislation

request.

paper—on

//

•

Incidentally, it has been passing

—

to

poration, 4740 North Ravenswood Avenue, Chicago 40, 111.—

Congress

>

V/>% of Profits

prevent losses through
fraud and embezzlement—W. H.
Klotz — Cummins-Chicago Cor¬
How

//'■

CLEARANCE

pattern

a

waits until
the closing weeks of each session to take floor action on its
annual
omnibus bousing
bill.

of

•Supporting the contentions

much

pretty

is

It
now

early in the

legislation passed
spring.
/ •

BIGs

Save

to

IIow

billion
government-guaranteed mort¬

gages.

since De¬
rising even
result of the housing
sharply

risen

have

cember

and

homes

Prospect,

Mount

Street,

111.—paper.

buying at par of $1

the
of

veterans

for

loans

says applications for
fha and va insured mortgages

Congress

direct

proposed

plus

housing,

— Washington, d. c.—The
Joint Economic Committee of

Securities

Square, Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

BS 69