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SfSffiSSS
s
WO
-1
JUL
1
e«s>n«r,0N
ESTABLISHED
Volume
1839
191
Reg. U. S. Pat. Offio• '
Number
New York
5964
AS WE SEE IT
Editorial
4'The critics of
our
strength. * * * The critics argue that if we
would just adopt their pet economic philosophy we too
would grow like the Soviets. They invite us to join them
in playing what is rapidly becoming the most fashion¬
able political parlor game of our time—a game we might
call 'growthmanship'."
..j.)■
f
'--A'With these words, the Vice-President and Presidential
hopeful, Mr. Nixon, launches what seems to us to be a
devastating attack upon the preachments of those (in¬
cluding Governor Rockefeller) who have apparently
become victims of the growth school of thought. This
faith was founded by the New Deal after it had for a
very considerable period preached the doctrine of "eco¬
nomic maturity" which held that no further growth, or
only limited further growth at most, was in the cards
for us, and that we must concern ourselves chiefly with
a redistribution of the wealth that we
already possessed
of the income that accrued from that wealth.
fad, and Mr. Nixon proceeds to set forth
It is
nomic
Members
in
there is
of
most
the
ideas
of
rather
Likely
(Continued
sales
company
in
authority
money,
Maintaining that these
slumps and
Mr.
ascribes
advocates
the
earnings, and senti¬
700,
and
1962,
buying
are
of
1
"projectile" must first
.
Average;
down
come
to
"launching
But that's
not
pad"
investment
adviser,
virtually
expected to have some convic¬
tion
regarding those
factors
which may influence the mar¬
what
the
net
result
maybe.
early 1954 there was little
that stock prices could
to
doubt
quite
mov§
a
bit higher and
*
In 1956,'in contrast,
accumulating and
the time approaching when one
were
should
in
take
sail.
has
too,
switched
•w%,|
1,1
What you want to know is
has
market
done
to
be able
where
and
'
&
r'
i'l
-. *
V'j
I
j]
'
until, and unless, business ac¬
considerably* or the monetary authorities deem the U. S. economy needs stimulus.
The
recent reduction in the discount rate does
not, I
believe, indicate a change in money policy. As I
left New York, rumors were rife that the Federal
'
>
: t
eases
are
70%
would
currently 90%.
still
leave
But
■
;t
t
;i
even
tight
a
reduction to
situation.
profit picture generally and especially in
leading industries is worsening.
Sales are
diminishing in many lines, costs rising and profit
a
money
The
the
Arthur Wiesenberger
yield from that
average up around 5%.
I then
here mentioned the three major factors that deter¬
many
mine
the
Federal Trade Commission and
and
Exchange Commission show that the net profit
dollar of sales in all
(Continued on page 16)
the
level
of
sentiment..
and
stock
All
prices—money,
three
were
on
a
margins narrowing.
earnings
favorable
suggested that the DJIA might sell
27)
1
has
it
to
continue at least
They
Industrial Average was around
and
market,
Reserve Board would reduce margin requirements.;
By early 1958, the pendulum
had reversed; the Dow-Jones
460
level, that is, February,
made its run in only 18 months.
history.
the
like
tivity
they did.
risks
a
of taking
that
I
say that in view of the
92-point decline suffered by the Dow-Jones Indus¬
trial Average after recording its
early-January
high, the way has been paved for resumption of
the major
advance, but I do not yet see reasons
for such an assumption.
As I mentioned before, there are three variables
that determine the level of stock prices — money,
earnings and sentiment.
All presently tend to be
adverse rather than favorable, so far as the out¬
look for most stock prices is concerned.
Money rates are relatively high and promise so
thing I've observed over the years in market
forecasting is that the current situation always ap¬
pears the most difficult ever faced and the present
is no exception. Still, it is usually possible and, as an
and
what
would
One
ket
3%
been, but what it may do and where it may go.
of around 500.
,
a
approxi- •
688.21 on i
■,-rt
but that the market
a
to
top
Three Dominant Factors
;
"stratospheric" level above 1,000 probable
Dow-Jones Industrial
reach
Apparently the stock
to jet propulsion.
now
reserves
months to
the
guessed
average
1962, the average
factors, along
same
narrowing profit margins
Wiesenberger
ultimate
an
for the
eco¬
on page
The
around
in February,
come
44
with
own
decade
level
a
35% to 50%. Concludes long-term prosperity still lies ahead,
rapid glance at the figures and con¬
projection that can be applied
a
at
or
might
favorable situation
a
adverse,
any
product of that economy
Arthur
unexpectedly fast rise at the end of the past dec¬
with
■a-a"-y'.*A /
' ■/*.,;
>><
of
Partner
of New York Stock Exchange
investment
ment elements.
no
our
Section
market's
possibility that the Soviet economy will over¬
at any time in this
century." Meanwhile,
the Central Intelligence
Agency has joined the large
number of current projectors,
presenting a sort of fore¬
cast of future
growth of the Soviet economy. It does not
undertake to say what the Soviet
economy will be like
by the end of the century, but it does come up with a
"projection" of what is known as the gross national
take
—
was kind enough to go
(The low yield was 2.92%) and to
mate the 700 level. The actual high was
the first trading day of 1960. But instead
In
Not
"by
Sections
ade to
with the
a
2
basis.
Well-known
growth, particularly as they relate to comparisons
performance of the economy of Soviet Russia.
embodied
Senior
Wiesenberger & Company, New York City;
of the
some
fallacies
Wiesenberger,*
Arthur
By
a
broad
that
In
Copy
a
Clearer Sailing in Decade Beyond
;;
economic
He takes
Cents
Clouds in the 1960 Market Picturc-
seeable future will become second to the Soviet Union in
cludes
50
present economic policies say that the
Soviets are achieving their objectives of overtaking us.
They claim that we are falling behind and in the fore¬
or
Price
7, N. Y., Thursday, June 30, 1960
and
3%
I
basis
per
Figures recently released by
the Securities
Underwriters and distributors of
PICTURES IN THIS ISSUE: Candid photos taken at the Annual
U. S. Government,
Public
.
BANK LIMITED
54 PARLIAMENT
to
KENYA,
the
STREET, S.W.I,
Government
UGANDA,
SOMALILAND
company
BOND DEPARTMENT
30 Broad Street
New York 15
Exchange .*
Associate Member American Stock
Exchange
Members Pacific Coast Exchange
BONDS
r
S.W.I.
in:
Offices
ZANZIBAR
&
THE FIRST NATIONAL CITY BANK
in:
PAKISTAN,
SOUTHERN
RHODESIA
in
Claremont, Corona del Mar,
Encino, Glendale, Hollywood, Long Beach,
Oceanside, Pasadena, Pomona, Redlaads,
Riverside, San Diego, Santa Ana,
Santa Monica, Whittier
ADEN,
CEYLON, BURMA,
KENYA,
TANGANYIKA, ZANZIBAR,
UGANDA, ADEN, SOMALILAND
PROTECTORATE, NORTHERN AND
INDIA,
OF NEW YORK
Inquiries Invited
Bond Dept."
Teletype: NY 1-708
DBALBR
ESTABLISHED 1832
Members
New
Stock
'
securities
.
Direct
—-
Cooperatives
Mortgage Association
United States Government Insured Merchant
Marine Bonds
and
-
International Bank for Reconstruction
and
Development (World Bank)
THE
Chase Manhattan
bank
Pershing Jk Co.
to-
buy
expire
on
,1
the above rights
September 18,
Private
Wires
to
Toronto,
Exchanges
Halifax
MUNICIPAL.
FOR
CANADIAN DEPARTMENT
.
HAnover 2-6000
the current market.
Montreal, Winnipeg, Calgary,
Vancouver, Victoria and
Commission Orders Executed On All
Exchange
offer
which
1960 at
Block Inquiries Invited
.
Canadian
American
We
,
York Stock Exchange
Banks for
Federal National
Rights
canadian
T. L.W ATSON &. Co.
.
Southern
Federal Home Loan Banks
The Bank of Nova Scotia
.
To Dealers, Banks and Brokers
..
on
New York Correspondent
Net Active Markets Maintained
.
O
NOTES
Federal Intermediate Credit Banks
California Securities
Uisr3D El R. WRITER,
DISTRIBUTOR
Co.
So. Hope Street, Los Angeles 11,
California
623
PROTECTORATE
Branches
&
Members New York Stock
ST. JAMES'S SQUARE,
13
Bankers
new york
*
Lester, Ryons
MUNICIPAL
>
Branches
London
HAnover 2-3700
chemical bank
trust
AND
~
AGENCY
Federal Land Banks
AND
.
26, BISHOPSGATE, LONDON, E.C.3.
telephone:
HOUSING
of Securities of
STATE
Office:
Head
.
PUBLIC
SECTION.
PICTORIAL
NATIONAL AND GRINDLAYS
Municipal
Securities
today's
Dealers in and Distributors
Housing,
State and
STATE, MUNICIPAL AND
Outing of the Investment
BONDS
Association of New York, appear in
BONDS
CALIFORNIA'S
'
:
25
BROAD
NEW YORK 4, N. Y.
%,
1
* * ' * V*
"V
BRIDGEPORT
*'>
•
:i
STREET
***
Goodbody
v
*
PERTH AMBOY
Teletype NY 1-2270
DIRECT WIRES TO MONTREAL AND TORONTO
^
W
&
NEW YORK
"
Grporacton
Co.
MEMBERS NEW YORK STOCK EXCHANGE
2 BROADWAY'
Dominion Securities
1 NORTH LA SALLE ST.
^CHICAGO
Associate Member American Stock
40
-
Exchange
Exchange Place, New York 5, N. T.
Tel. WHitehall 4=8161
Tele. NY 1-78M
,
is'f--i
CIVIC
IMPROVEMENT
MUNICIPAL BOND DEPARTMENT
BANK OF AMERICA
NLT. & S.A.
SAN FRANCISCO
•
*
LOS ANGELES
2
For Banks, Brokers, Dealers
!
Chronicle
The Commercial and Financial
(2802)
only
The
Security I Like Best..
i
A continuous forum in which, each
Call "HANSEATIC"
in the investment and
*
week, a different group of experts
Thursday, June 30, 1960
...
r
-
Alabama &
Participants and
Selections
Their
advisory field from all sections of the country
Week's
This
Forum
.
Louisiana Securities
participate and give their reasons for favoring a particular security.
We take
pride in the abil¬
American International Bowling—
ity of our large and expe¬
rienced, trading department
to cover an extremely
broad
will
It
.
range
you
to take
of our nation¬
wide private wire system
and prompt service in
pay
City
N.'Y. Slock Exchange and
Members:
advantage
-
areas
Security Analyst
Ross & Hirsch, New York
American Stock
Bowling
An attractive
1959 current
capital gains vehicle
found
in American Inter¬
be
can
This is
ters.
New York Hanseatic
a
most
i
Teletype NY 1-40
PHILADELPHIA
•
Private
Wires
to
450
SAN FRANCISCO
minimum
Cities
1,500
of
com¬
continue
IN JAPAN
S.
G.
Monthly
our
Stock
Digest, and our other reports
that give you a pretty clear
picture of the Japanese
economy as a whole.
of
The Nomura Securities Co., Ltd.
61 Broadway, New York 6, N. Y.
Telephone: BOwling Green 9-0187
-This
is
not
offer
an
orders for
any
solicitation
or
for
particular securities
It
traded
is
of
WALL
STREET
NEW YORK
5, N. Y.
the
—
Refined
undoubtedly the leading fac¬
tor in developing bowling.
This
facilitated
the
operation of the
the
.most
Liquid
Exports—Imports—Futures
with
tinues
south
(near which
Maine
where
B.
&
A.
potential
interest
000,000
.
Bangor and',r
widely
a
—high
average
nues
shares
increase
known to rail¬
analysts
the
that
potential.
fact
Leon Roy
Mabrey
During
the
JanuaryMay, 1959 shipping season very
low prices for potatoes prevailed
first
center
opened
was
De¬
because
tion.
company's
i®i
stockholders
common
with
excellent
fall
constructed to
a
spe¬
crops
pin-
for
cifications.
setters
The
exacting
Brunswick
purchased with
are
have
potato growing
and
Maine
of 5% to 7 years the
stook has earned
paid for in full and the
is
not
rental
burdened
fees.
including
and
restaurants
the
author of Ear
ope
Money Muddle
increases
other facilities,
cocktail lounges
it
will
is
that
debt
of
$22 million, and after five
this alone should develop
years
cash
An
flow
of $4
important
share.
per
aspect
■
the
of
business is the selection of favor¬
new
proposals
revolutionizing
the critical
debate
on
national
able
sites.
picked
Bowling
after
management
and
inter¬
monetary
dense
has
are
study
are
thoroughly checked by
wick staff member.
policy. $4.75
centers
detailed
a
then
Bruns¬
been
entering
population but
areas
with
tively little competition. That is
why they have built centers in
YALE UNIVERSITY PRESS
NEV HAVEN,
CONNECTICUT
as
a
circumstances
solicitation of
an
offer
to
to
in
BONDS
of
WEST VIRGINIA
VIRGINIA
NORTH
CAROLIN
SOUTH
CAROLIN
ex¬
call
F.W.I
&co
RICHMOND, VIRGINIA ■
op¬
attain¬
this
year
much
deficit
be
income
late
in
1959
reduced
working
equalled
revenues
576,486
in
1959
reduced
GODDARD,
of
by
Inc.
$200,000
well
may
is
deferred
no
be
/
Special report
on
request
main¬
tion.
because
of
year
summed
sizable
adversity.
net
rental
But
a
the
of
$1,-
income
356,000 arising from
up
for
be construed
buy,
any
as an
sharp
at
security referred
herein.)
year
dividends
annual
dividend
all
Broadway
Telephone:
1932
New York 4
|
.
WHitehall
Teletype:
NY
3-4490
1-960
Direct
Wires
Cleveland
1
to
Miami
equip¬
earnings
decline
were
rate
late
in
being
of
paid
$2.40.
Cur¬
near
N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
term
20-Year Performance of
policy.
Of greatest interest to me for
the long term is B. & A.'s
poten¬
tial in new business areas. Since
if
Established
11
share. Before the
the Board of Directors'
■
HARDY & HARDY
$2,-
Depreciation
average
per
earnings
the
35 Industrial Stocks
FOLDER
ON
REQUEST
railroad may not, under
present
law,
to
of
double
only 80 cents
and at the recent price of 29
(New
York Stock Exchange)
yields only
2.8%. I shall not conjecture about
a
or
items
nearly
rently the rate Tfs
summer earn¬
offer to sell,
cash
maturing
obligations.
Five
inventory reduc¬
producers
and
were
equal $5.29
Thus the sharp and unusual
in loadings of the main
of
At April 30, 1960 net
capital
of
$3,413,957
25%
of
annual
gross
cover
1958
of
percent of the
fleet is less than, ten
liabilities.
ment
decline
revenue
national average
charges
earn¬
curtailed paper production (reces¬
sion
influenced) fell further " in
1959
a
current
but loadings which were
normal in 1958 because of
below
car
old.
years
borrow money
curities
no
Bankers
For the
MUNICIPAL
Sixty-five
freight
depressed
a
|Tj| Tj
(This is under
Investment
higher.
shipments
are
may
with
7.2%.
year's
with
rela¬
in
net
quite
been
service
There
pares
about half of its
revenues
by
The company
&
Broadway, N. Y. 6 COrtlandt 7-5680
tenance; the bad order car ratio
of 3.8% at the end of 1959 com¬
Aroo¬
figure:
Four
months through April, 1960 earn¬
ings $3.25 per share; four months
1959
earnings $1.50 per share.
The
noted
entail
is
shipments
product
rental
cars.
ings to $1.39 per share, the poorest
showing since 1940.
Shipments
of
newsprint
and
pulp normally account for 24% of
when
lanes
111
realized, aided by an 8% increase
in the milage rate of refrigerator
weather.
and
operation
net
Bold
adverse
1959
An increase of close to
prices
Losses
about
THE DOLLAR
high
in
increase
already
in
damaged
leverage factor is evident in this
1500
'4/VD
areas
Bangor
year.11 This
with
average
substantially.
Tokyo, Japan
Brokers
changed methods of operation to
improve¬
ment is due mainly to the heavier
potato
shipments and compares
only three years to be pur¬
chased, at which time cash flow
TRIFFIN
"
Ltd.
$100,000 in 1960.
annual income in the first third of
company
an
of
.
are
with- continual
take
to
Historically,
of
Robert
and the
The
lanes,
the
much
never
due
rent income
50%
Potato
senger
potatoes.
Aroostook
suffered a crop
failure
pinsetters
in
been
produced
County has
a
car
1955
179,810
common
highly leveraged. An
of
$270,000
Uncommonly severe win¬
ter weather in western and south¬
ern
$500
downpayment and payments of 12
cents per line.
After an average
SAVM&
ship¬
of the
up
harvested
crop
1959)
Affiliate
Yamaichi Securities Co.,
running higher upon termination
of
the
pulpwood inventory ad¬
justments. An out of pocket pas¬
heavier.
than
their
of
(made
are
Paper
overproduc¬
This year's
pro¬
tremendous
Rather
since
the
have
ped much of the crop to the local
degree of leverage.
tying up capital in
real estate and buildings, the com¬
pany leases both with the centers
a
national
ments to markets
operation
annual net
Such
Maine potato growers ship¬
starch factories.
The
resulted
able.
,
of
'
Company
York, Inc.
erating income would increase net
income by 250 to 300%.
usually account for about 35% of
The
refrigerator
large
has
structure
ship¬
revenues.
with
of $1,300,000. There is no pre¬
ferred stock and in this capital
ating
of managing and
oper¬
modern
bowling
centers.
the
an
which
ments
■
cess
;
Bangor
potato
company was incorporated
Sept. 11, 1958 to engage in the
of
fleet
road
a
operating reve¬
$14,000,000. But purchase
the amount of
of
for
annual
earnings
swing with
com¬
Well
road
,*
annual
on
figures
Aroostook
Railroad
is
.
tide¬
owns
its long-term
including $13,equipment obligations
of
audience, it became
one
of the leading family sports.
Even with the rapid development
of bowling, there still remain seg¬
ments of the country, notably New
England
and
the South, where
ten pin bowling has hardly pene¬
trated. Foreign markets are rela¬
tively untapped and also
offer
mon.
of New
con¬
debt of $25,000,000
to
Securities
Bangor
$900,000
pays
tingent
it
11
fixed charges and $200,000 in con¬
-
expansion
introduced
*
pier, warehouses
earnings
vision
.
and extensive yard facilities.
of
vides
t
company
'
•
Yamaichi
Junction) to Searsport
terminal,
from its unattractive surroundings
into modernized centers, and'tele¬
licly owned by corporations of its
5
through
write
or
•
connection is made
a
the
water
of
is
'
plant
ern
and
v
information
current
Call
daily capacity of 1,800 tons
a
an
kind.
,o«"
huge
a
newsprint. The main line
greatly enhanced the
profit potential. As bowling moved
cember, 1958 in Ramsey, N. J., and
since that time the company has
become one of the leading pub¬
DIgby 4-2727
Paper company—by far
important
industrial
maintains
—
STOCKS
For
Great
shipper to the Bangor and Aroo¬
Dept., A. W. Benkert &
sification
JAPANESE
the
with the Maine Central at North¬
activities
and
game
on
—
at
the
where
area
Northern
the
business
Raw
River
John
St.
linocket
rare
value, atypical of its in¬
dustry and in process of a volun¬
tary revamping of its corporate
structure which promises a diver-
was
branch offices
our
of
A
early 1950's
The
SUGAR
line
the
considerable
99
The main
Maine.
Bangor and Aroostook Railroad Company
The introduction
in
to
"~.f { \
Canadian boundary south
the rich potato growing
Co., Inc., New York City
diversified
LAMB0RN & CO., Inc.
-
miles extends from Van Buren
of
particularly in
years,
automation
'
^
v
on
are
in
Mobile, Ala.
Direct wires
been
259
L. ROY MABREY
Investment
the past decade.
of
State
per
Bowling is an un¬
attractive
capital
gains
in
centers
years.
postwar
have
would
Bangor and Aroostook operates
miles of rail entirely in the
ending
centers
6, N. Y.
NY 1-1557
600
of
stook
bowling industry has wit¬
nessed
extraordinary growth in
the
$2
deficit
a
sustained.
Over-the-Counter Market.
Friedlaender
The
for
to
year
As
fleet
the
construction
rapid
future
fiscal
1961.
situation.
plans to
pany
19 Rector St., New York
New Orleans, La. - Birmingham, Ala
net after
operation
earnings
close
or
the
usually
1960
the
of
Exchange
Stock Exchange
Members- American
ings of the large refrigerator car
International
the
by
and
Write
Members New York Stock
HAnover 2-0700
through
completed,
earnings
should
in¬
area
of
crease substantially
and by fiscal
Aroostook County in northeastern
1962 could
approach the $4 per
Maine; through extensive wooded
share level.
Thus, I believe that
areas,
down
through
the
Milthe
common
stock
of American
of
end
Opportunities Unlimited
30,
present
lanes, to a
CHICAGO
Principal
June
from
expand
the
in
year,
rate
show
million
share
should
tion
5
should
$3.0
organiza¬
per
this
At
they
t ries.
u s
$2,000
taxes.
dynamic
d
n
The
Stock Exchange
•
around
the
of
one
1920
Associate Member
BOSTON
'1
cur¬
lane, including income from
food, liquor, and bowling,equip¬
ment,
presently
are
averaging
ing company
operating in
Corporation!
WOrth 4-2300
^
by
per
rapidly grow¬
Broadway, New York
Bought—Sold—Quoted
better than a
5 to 1 ratio. The company's profits
of modern bowling cen¬
manager
assets exceeded
liabilities
rent
operator and
national Bowling, an
American
Secu¬
'
Over-the-Counter
problems.
120
Friedlaender,
Dept.)*/L K STEINER, ROUSE & CO
'
Exchange (Assoc.)
American International
your
Established
S.
such as Tuscaloosa, Ala. and
rity, Analyst, Ross & Hirsch,
Chattanooga, Tenn., rather than
New York City (Page 2)
the competitive Mid-West.
The capitalization of the com¬ Bangor
and Aroostook Railroad
pany consists of 1 $540,000, shares
of common stock outstanding with
vestment
125,000 options, exercisable over
&
Co., Inc.,'New York "City.
a
10 year period.
As of Dec.- 31,
"'(Page"2)
-r
• v*:'- ;*•
CHARLES S. FRIEDLAENDER
contacts.
of
Charles
for
or' iksud!
non-carrier
se¬
purposes,
to ac-
Bangor and Aroostook is
Continued
on
page
23
National Quotation Bureau
'
Incorporated
46 Front Street
,
New York 4, N. Y.
Volume
191
Number
5964
.
.
The Commercial and Financial Chronicle
.
(2803)
3
Monetary Expansion Will
Not Solve Canada's Problems
;■
v
.
••• •
'
■
....
'•
7
.
"■■■
.•
.
.
CONTENTS
JCHTflMI
B.S.
1
'
r- v
h
i";
■
A
Articles and News
'
top Canadian official plainly
mitting
their country
States
warns
his countrymen they are com-
false
the
belief
that
that the present course has resulted in misdirected
and in
economic structure
an
excoriates
that
-
notion
that
money-credit
and
-
choice between
a
~
Bendix
expansion
J. E.
Coyne
Corporation—Ira U. Cobleigh
rather
success¬
H.
Johnson
•
ficulties
backs, but over the
Monetary policy will
—Hon. Robert H. Winters
bank
achievements
ments, yet 11
that
the
has
tial
the
see
—Stewart
increase
been
in
shall
of
volume
Golden
Sixties"
;—Reuben
that
shines
so
Monetary sobriety ahd
government deficits,
with
the
evidence
of
greater stability in the price level,
particularly
basic
commodity
prices and wholesale prices, have
given
us
dence
that
some
inflation
tained
if the
strong.
We
for
reason
will
be
can
to
con¬
contain
that
know
confi¬
it is
economic
growth, the conversion to human
benefit
inexhaustible
the
of
re¬
came
for
bank
the
avoid
dislocations
backs which grow out
do too much too
of
and
means
and
control.
that
for
It
with the aid
soon
large-scale foreign borrowing.
Monetary
Policy
Will
Not
Restrict Canada's Growth
Growth
in
omy
on • a
basis
will
the
Canadian
sound
never
and
be
is
This
of
far
as
the
central
is
bank
con¬
chartered
banks'
1958
followed
20
Elco Corp.
Regular Features
As We See It
Servonics
■
(Editorial)
Struthers Wells
Cover
:
Bank
and
Insurance
11—-.
Stocks—
BBM
26
~
Photocopy
antici-/
•Coming Events in the Investment Field.
could
—I—I
Electro Refractories
48
1;
of finance.
the
Dealer-Broker Investment Recommendations
8
Einzig: "What Britain's Resistance to Inflation Means"___—_
statistics
loans.
9
The
Singer, Bean
in
Part
and
the
since
of
September
1959,
the
increase
of
mackie,
11
&
45
of the News—Carlisle Bargeron
HA 2-9000
inc.
and,
decline
Indications
Mutual
of
Current
Funds
Business
Activity
1
$170
year
Direct Wires to
20
:
million
this
News About Banks and Bankers
Chicago
Observations—A.
is
Wilfred
May
5
-Our
A number of earlier bank loans
now
cases
Reporter
on
Governments-
Cleveland
Dallas
Philadelphia
Los Angeles
San Francisco
doubt partly seasonal.
have
40 Exchange Place, N. Y.
Teletype NY 1-1825 & 14844
22
was
character
seasonal
mid-February
no
From Washington Ahead
half that
following six
the
normal
a
'
roughly
by
amount
of
of
end
months.
St. Louis
32
*
out of the proceeds of bond
been
retired,
in
some
Public
by governmental or cor¬
porate borrowers. The high level
of
bank
lending for
consumer
and
as
repayments
accumulate,
loans
has slowed
purposes
of
the
this
decline,
of
character
down
consumer
financial
business
credit,
set¬
34
Offerings
43
BarChris
29
Construction
The Market
well
further
17
Corp.*
.
.
.
and
You—By Wallace Streete—
The Security I Like Best
4
2
The
4
State of Trade and Industry
Tax-Exempt Bond Market—Donald D. Mackey
institutions
the
in
Security
Security Salesman's Corner
releasing
funds for general business pur¬
poses. The banks have also put a
limit on the amount of funds they
to
31
may
thus
lend
11
Securities
Prospective
past loans
volume of
total
Utility
Securities Now in Registration
issues
for
by
Home Financing Costs Lower in New York Than in Other
Parts of Country, Says Frederick W. Jackson
demand*
or
mid-August
specializing
spurts
.
bank
the
and
will
short
Broadway, New York 5
y
general business and per¬
rose by $1,000 million
between
em¬
not
the
sources
apparent in
growth and the expansion of
opportunities,
39
19
evident
been
unnecessary
cerned, the objective of monetary
policy is to encourage economic
ployment
J.F.ReilIy&Co.,Inc.
sonal loans
by
inadequate bank credit nor by a
restrictive
monetary policy.
So
of
had
find alternative
econ¬
restricted
deal
credit
or
credit
sustainable
18
National Mortgage Market
was
became
soon
good
a
bank
patory
set¬
of trying to
credit
growing
rapidly than the amount of
credit which could prudently be"
made
available, the banks took'
steps to bring their loans under
also
our
.
more
to
within
a
DIgby 4-4970
earlier. When it be¬
apparent that the demand
of scientific discovery, can
forward, if we wish, in an en¬
vironment of stability and orderly
development. In Canada, however,
we
still have a major economic
problem to overcome if we are
sources
live
Request
I
;
i
—Kurt F, Flexner
a year
declined
go
!
Slesinger
Why We Must Soon Have
by selling off govern-^:
bonds which they had ac-yi
quired
coupled
on
their loans
ment
of
E.
the banks financed a rapid
expansion in various categories of..
During the past nine months in¬
flationary psychology has abated
considerably in Canada and the
United
States, although there
have been some signs of difficulty
in this regard in certain European
reduction
"Prospectus
16
year
invitingly.
countries.
PRODUCTS, INC.*
15
What Has Been Happening to Personal Consumption?
,
the first nine months of 1958. Last
heed to them, we
reach the goal "The
pay
never
Coleman
P.
—Roger W. Babson.
.
dangers and
14
substan¬
a
the
CROWN ALUMINUM
Production
Tariki
Great New Inventions Just Around the Corner
loans, which was made pos¬
sible in part by the very large
increase in the quantity of money
during the latter part of 1957 and
J.E.Coyne
do
we
nevertheless
H.
HUDSON VITAMIN
There
deposits.
13
bank
a
bank¬
If
er.
not
bank
....
World Wide Demand and Supply for Petroleum
in the total quantity of cur¬
the
and
-—Abdulla
in¬
plus
1
*
Canada
in
significant
no
rency
duty of
central
months
18
had
crease
this
be
function
have
CARY CHEMICALS
Productivity in U. S. A.
A Proposal to Prorate International Oil
conjunction
of
BAIRD-ATOMIC, INC.
12
—W. W. Rostow
production and distribu¬
For some
-
■
Prince
The Problems of Inflation and
of goods and services.
we
suppose
—Charles
credit, to fi¬
increasing volume of>
an
tion
times
BOWLING
10
an
ensure
in
credit,
other forms
nance
enjoy¬
run.
total supply of money,
carrying on an increasing vol- '
of
transactions
year
after
year, and an adequate availability
with
and
long
ume
rather than
at
<
AMERICAN INTL.
:
"
adequate
Canadian
must
4-6551
Canada Faces the Problem of Changing Circumstances
for
dangers
and
Dept.
7
%
'
poverty-stricken independence
of
about dif¬
es,
Securities
STREET, NEW YORK
Telephone: WHitehall
4
Appraising the Second Largest Financial Center
probably not make myself
popular by remarking that all is
not gold that glitters. It is not a
pleasant task to talk about eco¬
nomic
prob¬
lems
Obsolete
3
form of economic colonialism.
some
I shall
than
top buyers
stocks.
Consumer Credit Growth Potential in the 60's
—Arno
>
promises prosperity, real growth, full employment and Cana-
dianism—instead of
■
the
solution, not without cost and effort in the short run,
a
lose the
never
of
fallen
99 WALL
The
deplores municipal and provincial dollar borrowings;
and offers
title
The Governor raises the spectre of currency
is
-
—Hon.
j
panacea;
Cover
,v.
Monetary Expansion Will Not Solve Canada's Problems
K
depreciation;
a
Beyond—Arthur Wiesenberger
of
capital spending
incapable of producing goods that are
and dividend payments.
-
Decade
*
requiring the borrowing of funds to meet external interest
needed and
;
We'll
affect economic growth and employment, the central banker argues
\;
CHAMPION!
Clouds in the 1960 Market Picture—Clearer Sailing in
Labeling
reversal of this trend will deleteriously
any
AND STILL
page
'>
irreversibly to the vassalage of the United
by continuing the capital inflow and import trend.
COMPANY
AND
By Hon. J. E. Coyne,* Governor of the Bank of Canada
Corporation
6
Washington and You
of
Elco
Cormac Chemical
48
Corp.
institutions
Continued
on
page
28
:
Cormac Photocopy
.
For many years we
DDCCCDDCn
CTRPIfC
have
iltLrCliltLU
ulUultO
specialized in
^
I
;
f
,
I
,1
,
Published Twice Weekly
Copyright 1960 by William B. Dana
The COMMERCIAL and
FINANCIAL
CHRONICLE
Company
Reentered
ary
Reg. U. S. Patent Office
I I I 11
WILLIAM
B.
DANA
CLAUDE D.
Founded 1868
SEIBERT,
DANA
GEORGE
J.
Members New York Stock Exchange
t.
v
m
25 BROAD
ST., NEW YORK 4, N. Y.
TELEPHONE HAnover 24300
Albany
Boston
.
,
TELETYPE NY 1-5
Chicago
i
/
Publisher
SEIBERT, President
MORRISSEY, Editor
Glens Falls
state
and
city
news,
etc.)
Newark
Schenectady
Worcester
Other
Chicago
Office:
3,
HI.
matter
office
Febru¬
at
*Prospectus
an
request
New
Subscription Rates
in
United States, U.
Territories
and
Members
Pan-American
Dominion
Other
of
135
South
(Telephone
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Salle
STate
Union,
$65.00
Canada,
Countries, $72.00
Bank
$45.00
St.,
2-0613).
and
per
rate
foreign
Quotation
year.
Note—On
the
'
Nashville
post
per
$68.00
per
year;
per
8.
of
in
year;
year.
Other Publications
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,
.
the
Subscriptions
Possessions,
Thursday, June 30, 1960
m
at
York, N. Y., under the Act of March 8,1879.
Y.
REctor 2-9570 to 9576
WILLIAM
1942,
COMPANY, Publisher®
25 Park Place, New York 7, N.
Spencer Trask & Co.
25,
second-class
as
Record
(Foreign
account
of
the
INCORPORATED
39 BROADWAY, NEW
Monthly,
Postage extra).
YORK 6
—
WHitehall
3-6633
fluctuations In
of
exchange,
remittances
for
subscriptions and advertisements
must be made in
W» V. FRANKEL & CO.
New York funds.
Teletype
NY
1-4040
^ 4041
4
Financial Chronicle
The Commercial and
(2804)
.
,
.
Thursday, June 30, 1960
'
,
i
i
' '
;
.
.
.
Steel Production
products including cleaning sys¬
tems, weather bureau instruments,
and a line of gauge and measuring
machines and elements for auto¬
Bendix Corporation
with
and
It
is
Bendix Corporation
and
shortened
is the recently
generalized
more
corporate title for the enterprise
known
for
decades
as
Bendix
While prod¬
aviation constitute an im¬
Aviation Corporation.
ucts for
portant part of its business, Bendix
today should be regarded as a
broadly diversified and techni¬
cally talented enterprise majoring
not only in aviation, but in elec¬
tronics, missiles, rockets and space
automotive
and
marine
acoustics,
ultrasonics
ships,
products,
top
Where
instrumentation.
and
flight scientific skills, and labora¬
invention and initiative are
essential, and where precise finely
tory
volume
technological
engineered
we'll touch upon
ties
at
one
If
tronics.
gets
a
sand
operations
its major activi¬
time.
a
First,
little
some
elec¬
company
big order for several thou¬
potentiometers
or
diodes,
chances
the stock of that com¬
are
of
program.
tive
effec¬
extensive and
an
development
and
research
by
there
keeps
will zoom. But Bendix gets
big electronic orders all the time,
yet investors, generally, have not
pany
Business Failures
Commodity Price Index
Business
ahead
continued
has
to
move
throughout the spring
pe¬
riod, the Office of Business Eco¬
nomics of the U.
S. Commerce
of
chases
sales
automobiles
push
of
in
resulted
increased
and
manufacturers
the
has
either
maintained or
production
schedules;
about 12,000
Department reports in the June dealer stocks have been kept at
(about 40% of whom are engi¬
issue of its monthly Survey
of a high point. A wide selection of
ance
systems, auto-pilots, servo- neers or scientists)
and about
cars is now available to the pub¬
Current Business.
control systems and ground sup¬ Txk% of annual sales is devoted
lic and promotions, which include
Final
demand for the output
port
and
missile
handling to research and development, con¬
inducements, have helped
of the economy, OBE notes, has price
elements.
stantly improving existing prod¬
maintain new car
sales—including
continued to forge ahead, paced
ucts and creating new ones.
Specifically, Bendix is impor¬
foreign makes—at close to a seven
by demands for both consumption
tantly identified with some of our
million
annual
rate
during the
and investment goods.
This ad¬
Earnings
most exciting and significant ce¬
vance has
been in part offset by spring period.
The year
1957 was the peak
lestial projects. Bendix is part of
the
slackening in inventory re¬
Employment Income Higher
the Western Electric team work¬ year for sales—over $711 million.
quirements from the very high
ing on communications and track¬ For the fiscal year 1959, sales
Compensation of employees has
post-strike rate of the initial 1960
ing systems for Project Mercury were $689.7 million and per share
risen during the second quarter,
quarter, so that the expansion in
(man-in-space). Bendix produces net was $5.37. For the six months
total GNP has as expected been giving a lift to buying power. The
components and sub-systems for ended March 31, 1960 sales had
average
workweek
at
factories
A staff of
increased by
23.4%
ceding
haps a
For fiscal 1960 per¬
Bendix is
Bendix
of
magnitude
guidance. Products include seek¬
ers, computers, auxiliary electric
and hydraulic power units, guid¬
control
and
technology,
virtue of
be
of
some
the diverse
convey
and complete systems
operating
Auto Production
ordinary
and
their
for
best
our
Atlas,
—
Electronics
order to
components
major
Food Price Index
obvious that Bendix
company. Jt
is
is quite
no
out front in several new fields
Polaris,
Nike-Hercules, Tartan and Titan.
productions are required, Bendix
is a brilliant performer.
In
produced
tor missiles
: g;:S
The State of
TRADE and INDUSTRY
Research
navigation in space
and
Retail Trade
by the Sheffield Corp. division.
Bendix organization
its major stature in electronics, missiles
special emphasis on
M
production lines, produced
mated
descriptive account of the broad and unique
A
Carloadings
,
Economist
By Dr. Ira U. Cobleigh, Enterprise
Electric Output
missiles
known
Minuteman,
prime contractor for the
Navy's long-range surface-to-air
missile, the Talos. Further Bendix
is developing a new world-wide
radio system, and has in operation
effective
two
tracking
of
for
systems
the
satellites.
its leadership in
all these defense technologies has
Bendix,
not
with
neglected its traditional avia¬
year.
new high
reached and a
of above
the pre¬
over
in
sales
may
that
position Bendix has
been consistently strong, with net
business fixed investment is
1959)
of over $141 millions. For the past
nine years capital expansion out¬
lays
have averaged
about $13
million annually. These plant ad¬
(Sept.
capital
have
30,
having declined
months, and has con¬
tributed recently to the payroll
advance.
' - - several
The number of workers
on
non-
continuing strong element. This
basic indicator of trends is ex¬
farm
panding during the current quar¬
ter and
the rise is expected to
changed from April to May, with
the seasonally adjusted total
extend throughout
payrolls
the
above
the year.
virtually
was
first
quarter
un¬
average.
has been Compared with the spring of 1959,
steady
over
the
past
several the principal increases have been
months.
Retail sales have fluc¬ in trade, services, and state and
Industrial
t p u t
0 u
for
financed,
been
in May, after
rose
for
a
In financial
ditions
when compared with
rise in the opening
The OBE notes in its summary
share net
per
$5.50 is expected.
working
dampened
rapid
quarter. ,
the
cus¬
standard aircraft;
and for the new turbo-props and
tomary among electronic equities.
has achieved outstanding
local governments. The remainder
tuated, but have displayed a rising
of the year-to-year gain repre¬
tendency. Exports have advanced.
mented
by
a
revolving
credit The total of government pur¬ sented small but rather widely
accommodation under which there chases of
With recent
goods and services has dispersed increases.
were $47 V2 millions in borrowings
cut-backs in durable goods manu¬
remained about the same.
jets it has a whole series of auto¬
as
Bendix
accorded
ratio
price/earnings
the
common
now
Bendix
business.
tion
It
buretors, wheels,
magnetos
produces
car¬
starters, brakes,
for
pilots, automatic control systems,
navigational instrumentation, non¬
of
products
covers
everything magnetic compasses, engine con¬
from
connectors
and
semi¬
trol, and fuel metering systems.
••;v.\
conductors
to complete
\
aviation
electronics. Its range
eminence in
.■\
control, sonar and radar
Radar used to be just
a depth finder. Now, with micro¬
waves,
it's
everything.
Bendix
Doppler air navigating radar sup¬
plies constant and accurate read-,
ings
of
positions
and
ground
speeds. For our defense program
there's
ESAR,
a
radar system
Automotive
flight
systems.
which
track
can
that may
guard
tronic
missiles
be launched against us.
There's SAGE
based
hostile
radar
a
complete ground
system to
warn
and
against air attacks. Elec¬
communications, antennae,
• ••
The
Bendix
respected
\
Business
name
is
a
widely
in the motor trade.
one
General Motors, Chrysler, Ford as
well
the smaller producers are
as
with the specialized prod¬
served
ucts for which Bendix has become
famous
carburetors,
fuel
injection
—
drives,
radios,
power
starting
systems,
brakes (standard and
driven) and power steering
elements. No longer do frail little
have
to
tug and haul at
the steering wheel to angle the
family car into a curbside parking
women
direction
finders, telemetering position. Now they park with a
systems and computers round out flick of the wrist, thanks to Ben¬
one
of
the
most
complete and dix power
steering.
sophisticated lines of electronic
For 1959 (fiscal year ends Sep¬
products in the business.
tember
30th),
Bendix
business
was
divided 68% military and
Aviation
Bendix
the major
industry from manned aircraft
to guided missiles and space ships,
and it has pioneered in the new
space
commercial.
Other
technology. It has developed
most
of
part, internally, supple¬
Sept. 30,
large
portion of business is in the ro¬
mantic
and
sophisticated
tech¬
a
Bendix
one.
has
some
ultrasonic
a
nologies of electronics and space.
been
showed
months
growth in sales
the first
indicates
as
significant
a
compared with
year. This
substantial increase in
quarter of the
a
highs reached last summer.
Money Markets Ease
The
in
rise
at
ceeded
from
earnings.
Then
times
50
to
30
:v
Bendix
too,
■■
has
,v
net
.•©:
been
addition,
there
was
a
stock
a
last January of 5%
2-for-l stock split in 1955.
have
dends
been
paid
interruption since
and
Divi¬
without
1939.
favorable
Another
income
and
in
consumer
with
in
year,
earlier
the
upsurge
and financial
business
have
of
requirements
the
pro¬
recently
been more
readily accommodated.
Reserve Banks, tak¬
cognizance of easier money
The
Federal
ing
market
conditions,
discount rate
moved
their
loans to member
on
down
banks
one-half
point in
early June, the first such reduc¬
tion since 1958. Commercial banks
have
reduced
from
the
their
Federal
borrowings
Reserve
to
a
point where, on net balance, the
banking system is currently out
of debt to the central
in
the
bank.
This
of
prevailing
straightened market
to
$500
million
reserves
1959.
more
The
changed money market
though
conditions
are
portrayed in the
May than in
cost of short-term borrowed funds.
April on a seasonally adjusted
The discount on three-month
basis, were for the two-month
period the best since 1955, notably Treasury bills has recently been
New
car
somewhat
above
the
.
purchases,
lower
first
in
and
quarter
one-
tenth higher than at this time last
year.
factor
has
pace
compared
as
of
new
debt.
good dividend payer. Present rate
of $2.40 provides a
3.7% yield.
a
in
activity
lesser
a
of com¬ the consumer portion of the
GNP, is in contrast
panies in those fields usually sell which has resulted from the rise net borrowed
at
employment
running well below the
equities
Representative
dividend
the G-20
where such
company
In
equipment,
the
computer, and
high speed transistorized
has
term
•
for
industrial
at facturing,
to $400 bil¬
annual rate close
of $1,210,000
in lion in May, topped the first quar¬
debt,
followed, by ter volume by $6 billion—and the
5,366,624 shares of common listed ryear-ago figure by $18 billion,
on
NYSE.
Price range for
1960 or 5%.
has been between 57V2 and 74V2,
Buying By Consumers Upward
with the current quotation around
Consumer buying has been a
64V2.
f
s.
major element of strength, in
How
should
we
regard
this
final purchases, and has contrib¬
Bendix common in today's mar¬
uted the major impetus to rising
ket? Is it a good value? By the
business.
April buying was un¬
standard yardstick of price/earn¬
usually strong, in part reflecting
ings it looks underpriced. Bendix
the removal of retarding influ¬
sells about 12 times 1960 indicated
ences which had dampened March
net. This is an all right ratio for
sales and while the April spurt
an
automotive
supply company,
was
not sustained fully in May,
but it seems a meagre appraisal
the combined results for the two
long
G-15
range
The flow of personal income,
an
ple' "cdnsisting
data-processing
broad
1959.
Capitalization is unusually sim¬
commer¬
among
perceive
the
32%
the first to cial business, not catalogued above
include
transition in would
a
new
line
of
was
the
The
improved
spring
in
the
with
2-3%
high
a
range
of
as
over
Continued
pur¬
compared
las*
4J/2%
on
page
32
in
Bendix has been its ratio of earn¬
©
We take
•
i. *
*
ings
pleasure in announcing that
on
invested capital. For the
MR.
IRVING KAHN
each year, about
capital.
will join our firm
as
of
as
a
©
'■* * ?
past five years, Bendix has earned,
General Partner
while
July 1, 1960
So,
13%
on
Bendix may
not
based
the
on
a
spec¬
lively
quality
of
©
©
©
©
its
Messrs. LESLIE A. TAYLOR
ALAN
R.
F.
DeLUCA
that
so
continue at
Abraham
our
&
net,
not
the fact
and
is, in fact,
has
recognized
who have been associated with Mr. Kahn
will
share
Bendix
KAHN
a
NEW YORK
FRANCISCO, C
7
become
Raymond
a
Vice
Hooker & Fay
5
ery
;.....'it„
announce
M.
-
a
1 i f.
—
Young
President
larger quarters
at
8
Q
9
9
9
9
9
9
9
9
44 Wall Street
I
On
Our
will
telephone number
is
unchanged
9
9
of
Inc., 221 Montgom¬
Street, members of the New
York and Pacific Coast Stock Ex¬
changes.
9
9
9
Q
9
Q
the removal of their offices
sufficiently
to
July
120 BROADWAY
■;-»
Established 1929
such.
as
SAN
Leading Stock and Commodity Exchanges
f'i>
9
9
9
glamor stock
been
Young to Be V.-P.
Of Hooker, Fay
Members New York Stock Exchange
1
Members New York Stock
Exchange
©
©
Co.
«'•'
»i
that
firm.
Established 1916
and other
4
*
management, indicated rise in
per
WILLIAM
'
Lubetkin, Regan &* Kennedy
that
soar
tacularly it should have
market,
invested
conclude,
we
>.'■
©
©
©
)
...
HAnover 2-2100
9
9
0
9
9
9
9
•Q£QCQO@QQ®&®Q
Volume 191
Number
5964
.
.
The Commercial and
.
Chronicle
Financial
(2805)
our
currently haphazard market-
pricing,
t
•
BY
A.
•
"THE
in
John
Burr
THEORY
OF'
Williams'
was
pioneer in the
a
proach of present worth.
this
of
year
the
the
in
As
of
case
"growthman-
practically
you
all methods of value
assumptions must be
made about the future per share
earnings.
a stock is selling
earnings, it must be a
speculation; but if it sells at 40
times earnings, it is
and a sound
growth stock
a
investment"), reports
of revived interest in some of the
few
classic
with
the
value
basic
is
One
volumes
concerned
determinants
great- news!
of
these
GROWTH
28 years of existence.
"sticky"
long years
TA¬
barn, where
to
fact,
in
since 1931, that
stored
copies in an
author
the
In
the sales
were
some
wrong kind"
the bindings.
the
the
old
book-worms "of
attracted
were
Thus, to satisfy
the revived demand, the
publisher,
the Financial Publishing
Company
of Boston, has
enterprisingly
gaged in
a
and that this
ited number of de-loused volumes
at one-half the
original $25 price
tag.
10
interest
expectable
of
10
dividends
to
to
a
received
5% return, and find that
could pay 21.1 times earnings
and get a 5% return.
Present Worth of Future
for
have
totaled
reinvested
be
most heartening, as
a
rip¬
against the present
quotations, is
reason
era's glamour-based
indicated
by
some
distribution
rate
for
earnings,
iness."
Constructive
Approaches
revival
concerned
gested in Arnold Bernhard's "THE
ing for
first
ever
closing
of
further
we
go
In
great advance
to press.
setting
of interest,
observers of
34 ^
to
public's market "valuation,"
the
bankers
and
sellers
is
need
demonstrated
recognition
of
comes along in the form of a
comprehensive 50-year analysis of
Summer Rises in the WIESENBERGER INVESTMENT REPORT
as
correct,
*
Note
THE
space
form
of
his
the
Values
"Stock
in
and
'advance'to
'July
(Has
Sun
Spot
Theory under¬
"anticipatory"
the
trend?
And if so, will it be
same
upset
by the satellite-ry and orbit-ry of
Age?)
the Space
the
Quist Joins
Wm. P.
Harper
CALENDAR"
9,
in
Albert
J.
Quist,
Glore,
Forgan & Co., New York, has be¬
this
associated with their firm.
come
cited
we
that
announces
who retired last year from
"INVESTING
the
market's so-called "Summer Rise"
Putney Joins
to
outsmart
players
the
with
other
BOSTON, Mass.—Charles M. Put¬
market
same
the
Eaton & Howard
thought
ney has
Eaton &
become
associated
(i.e., the "Theory of the Greater Street.
Fool", which assumes that you. was associated with The First Na¬
always be able to find other tional Bank of Boston and with
ANALYSTS JOURNAL; to con¬
tinued interest, although perhaps speculators dumber than yourself The Old Colony Trust Company as
on whom to
unload)—thus press¬ a security analyst.
tempered by lip-service, in Gra¬
Stock
Prices"
in
two-
current
a
will
"SECURITY
even
(and
cita¬
to
tion,5 in the current ANALYSTS
JOURNAL, of your author's longrepeated
proposals to gear pur¬
price to the probability of
recovering, via amortization tech¬
nique, the principal together with
chase
James Richardson & Sons, Inc.
INVESTMENT
announce
SECURITIES
its investment return and
increment,
time).
and
19th Floor, 14 Wall Street, New York 5, n.y.
TELEPHONE
NUMBER
IS
CHANGED
profit
a
reasonable
a
Of course, all of these methods
contain variables,
imponderables,
New York office to
THE
within
Uncertainties, of Course
the relocation of their
TO:
uncertainties, particularly in
the future estimates
on
which the
necessary assumptions are based.
But this approach is (1) Consist¬
with
ent
aims,
Dlgby 9-2850
hard-boiled
and
(2)
investment
furnishes
realistic
meaning to the multiplier (that is,
the factor applied to the earnings
or
Canadian Affiliate
the dividends to determine
price ^
the
An Old Name in American Finance Becomes
in lieu of the prevalent
practice of lifting ratio and yield
air, or of basing them
on
comparisons with their past
record
or
the
present ratios of
James Richardson & Sons
a
out of thin
Established 1857
Members of the Investment Dealers' Association
of Canada
other
issues, all in
keeping
a
kind of
than
more
been
game.
blandly to justify (as was "hidden
earnings" in the nineteen twen¬
ties) any desired price-earnings
ratio (ranging anywhere from 30
to
For
New Name in Southern California
70 years
Hornblower 8c Weeks has
score-
Any objective scrutiny of cur¬
rent market commentary must re¬
veal the exploitation of "growth"
60).
a
leading
name
in finance and investments.
During this period 21 offices have been established
in
the
East, Midwest and South. Now through con¬
solidation,
as
of July 1, 1960, of its business with
that of Revel Miller & Co.,
Inc., which has been well
known in the Los
area
extending its
Angeles
many
since 1926, H&W is
services to Southern California.
Vitamin - Growth
Robert
The
ally
uncertainty—if not actu¬
haphazard nature — of Wall
Street's
present
week's
,./
,
throughout the United States and Canqda
pricing
is
demonstrated
matically
in
initial
interest
«
in
Products,
the
Inc.,
who founded
I-
UNDERWRITERS AND DISTRIBUTORS
With
the
OF INVESTMENT SECURITIES
Members New
&
Dominick
York, American & Toronto Stock Exchanges
14 WALL STREET
NEW YORK
advisers'
their
of
the
dra¬
last
one-
business,
-
as
Miller
general partners of Hornblower
•
Hornblower
-A,
40-Wall
coupled,
Madison
"selling
stockholders" (insiders) accepted
$12.50, less underwriting discounts
and commissions, as their satis¬
factory price. And this price was,
of
course,, deemed
fair
to
the
investing public by the expert
bankers.
(The annual net earn¬
ings per share since 1955 have
been: $0.19, $.03, $.09, $.26, $.79,
and $1.11 for the nine months to
&
Weeks
Street, New York 5, N. Y..
*Midtown: 400
knowledge
these
being admitted
Richard A.
Revel Miller 8c Co., Inc. will be associated with this firm.
*
their .ex-;
counsel
Miller and
stock
company.4. \
first-hand
R.
& Weeks. The 50 members of the staff of the former
brothers
two
of
are
Vitamin
Hudson
benefit
pert
of
common
by
the
with
Dominick
offering
third of their 100%
Correspondents inprincipal cities
with
Howard, Inc., 24 Federal
Prior to 1957, Mr. Putney
issue feature of THE FINANCIAL
ANALYSIS"
Inc.
peak
in' the
gone
as
exemplifying the public's in¬
OF COMMON
acceptance
of
an
ap¬
(published by Simon & creasing
recurring
event
as
a
Schuster); also to published lec¬ parently
tures on the Capitalization of In¬ market "system." We pointed out
how this entails
come
ever-accelerating
by R. M. Soldofsky of the
State University of Iowa; again to investor anticipation in his effort
Molodovsky
century
nineteen fifties.
EVALUATION
Nicholas
half
seasonal
the decades progressed,
as
an
*
on
June
on
A
the
advancing steadily over the years.
Back in the
'teens, the market
made its seasonal
high in October,
with the highs coming
successively
earlier
TIME-TABLE
BY
issue).
shows
SEATTLE, Wash.—Wm. P. Harper
ADVANCING & Son & Co., 1504 Third
Avenue,
GATE'S
our
10
some
*
In
(June
average
With
reasonably
definite
and
logical concept of
value
to
be
embraced
by both
these sets of the market's partici¬
pants.
THE
entrance
Confirmation of this conclusion
were
for
opening and
market's
now
price
tag
that
just one-half the
a
turned out to be
earlier
the
and exit gates.
STOCKS"
ham -aand. 'Dodd's
jrs
in
until
which rate is itself determined by
the reinvestment needs of the bus¬
Dr.
Dividends
an
dividends
price, since the divi¬
cannot
Other
you
ple of
The
work
Suppose the stock is selling at
earnings, then you swing
over
Cash
in appraising the value and
pos¬
sibly deliberately refraining from
they are collected, >at the outset exploiting the public's proclivity
to
include
this " issue 'in
the
they must be discounted to cal¬
"glamour"
or
"growth
cate¬
culate their present worth.
"A stock is worth the present gory"? Or, on the other hand is
"the
market
is
always
right"
value of its future dividends, with
slogan the answer? Whatever the
future
dividends
dependent
on
cause
of
the
disparity between
future
earnings," says Dr. Wil¬
and
market
liams. "Value thus depends on the offering
price, the
assumed
go
20 times
re¬
turns from growth in a stock. Such
estimation differs from the
pre¬
cision available for the calcula¬
end
reimbursed
estimates,
Other constructive straws (part¬
for you.
Suppose you feel that 8% on an ly offsetting the lay public's and
issue is a proper return on your gossip column's excitement over
the
"how-to-make
millions"
money. The tables show that you
can
pay
16.4 times the stock's tomes) include the special recog¬
nition being given to the disci¬
present earnings, to give you the
plined methods of evaluation sug¬
8% return.
Also
the
the
At
these
tables
proximation,
the
*
growth will continue
years.
From
the
The
of
■
only 10 times earnings. During
the 10-year period you estimate
a
dividend pay-out
of 40%
of
earnings.
.
tion
v1' '
at
Roughly summarized: Mr. Guild
attempts, with mathematical ap¬
discount
■
with further growth doubt¬
ful, you can count on selling out
en¬
unique Operation Fu¬
migation, and is offering the lim¬
to
Pay-Out
:
the
years,
DISCOUNT
been
original investment when the
your
dends
technique of Mr.
Guild's volume:
In a typical case
you estimate that the earnings of
a
stock will grow 10% annually,
for
by S. E. Guild of Boston,
published in 1931, has sold more
copies this year than in its previ¬
so
'/V
Using
"STOCK
BLES"
ous
Capitalizing the Dividend
-
books,
AND
of
have
the purchase
times
8
As with
Guild, this method of appraisal is
keyed to pay-out.
But, although
ship" fetish ("if
at
ap¬
appraisal,
STOCK VALUE
In
bond.
a
1960.
-
Williams
from
29,
1959 totalled $0.53.)
INVEST¬
public' trading in the
MENT VALUE," a doctoral dis¬
issue, taking place over - the
sertation first published in
1938
counter, at higher than double the
by the Harvard University Press.
12i/2 offering price, followed by a
WILFRED MAY
FUMIGATION AND OTHER
FACTORS DETERMINING
Feb.
5
Ave., at 47th
Dl 4-6600
St. (17)
PL 1-1900
*Open Thursdays until 9 PM
Members New York Stock
BOSTON
PROVIDENCE
CHARLOTTE
NEW
YORK
Exchange and other Principal Stock Exchanges
CHICAGO
PORTLAND
WORCESTER
The Hornblower
is
DETROIT
BANGOR
MEMPHIS
LOS
CLEVELAND
HARTPORD
ANGELES
Representative
ready to help
you
PHILADELPHIA
PEORIA
SANTA
MONICA
ROCKFORD
GLENDALE
6
(2806)
scaled
TAX-EXEMPT BOND MARKET
last
BY
DONALD
D.
2.20%
from
to-yield
installment
1999
cue
group
tax-exempt bond market has
been
easier
port,
events
last
since
due
to
week's
several
term 4*4s due 2010 at the opening
of business on Tuesday and, from
re-
confusing
original
an
affecting the general credit
was
offering
price
of
104y4,
the
market
declined
to
102-102^. Improvement has de-
was
runner
is
not
A
for
bid
was
by
The
bond
remote,
action
of the Bank
market
but
logically
has
is
been
markets.
7•
Inventory
There
was'
fixed
payments pledged to these
bonds whether or not the project
psycho-
upsetting in
our financial
degree to all of
some
actually
impact
its
Very High
;
continues to be capable of
tion, places these District
bonds
'in
a uniquely well secured class.
.Treasury issues began to show
improvement on Tuesday
?*d it seemed to be contagious to
+the Municipal market m an at-
heavy volume of new issues
brought to market last week. As
tenuated
sort
of
Dollar
way.
Quoted issues were , perhaps a
was
a
likelihood that secondary-Quar*er better and some modest
market volume would sizably in- saies seemed
to be made from
crease as
a
result of unsold bal- , reS?
ney issue accounts,
ances. Such a condition developed
Fortunately tne week s_ outy
and the street float J as measured
nm!^~o+Z+ ls*uer.lriY?• $^3,000,by the "Blue List," on Tuesday, - 000 - statC
California various
June
28,
stood
at
$429,053,200, general obligation
serial bonds,
which is a record high going some" *or
wbich the several bidding
years
back.
This
circumstance,. &rouPs were merged in order to
too, was a market deterrent and"a+ rePresentutiye bid. Were
anticipated by
dealers, there
many
,
has
on
had
its
effect,
to.+have be<7n
particularly
institutional investors who
fol-* bidders,
successful
low the market's technical aspects
from
day to day. This circum-.
in
stance
itself
generally
in
placed
favorable
a
trading
Bonds
.
customary effect on all other
phases of the bond market. Some
anxiety relative to .the manner
borrowing about three
new
(details
money
time
Federal
market
that
the
joyed
the
the
plus
reasons,
bond
general
last
and
in
early
Financial
Chronicle's
at
This
3.384%,
ket
decline
an
of
last
week
the
average, mar-
about
one-half
point.
Moreover,
note
that
market
Negative Factor
it
interesting to
municipal
bond
suffered
of the
somewhat
be-
>
reeep-
and
term
bond
issue. This well secured issue
brought
out
investor
interest
with
much
was
The successful placement of this
large offering at this turn of the
again emphasizes the
of
intelligent
im-
coopera-
tion between the issuer and the
underwriters. Despite the over-all
breadth
of
the
tax-exempt
ever,
the negative market condicited
above, combined with
than moderate price cover,
contributed
to
the
detriment of
more
the
otherwise auspicious offering.
that
"on
create
stantial
State
funds.
The Pennsylvania
Authority awarded
school lease revenue
School
•
$25,260,000
serial
block
grade bonds has been
negative
There
market
was
a
a
of
high
decidedly
factor.
free market in the
(1960-1999)
bonds to the
large group headed by Halsey,
Stuart & Company, C. J. Devine
& Company, Goldman, Sachs &
Company, Glore, Forgan & Cornpany
Bate
(State)
.7
3y2%
1:30 p.m.
1,600,000
1960-1988
2:00
p.m.
1,000,000
1,365,000
i,095,000
1962-1982
1963-2000
11:00
a.m.
9:00
a.m.
1961-1987
10,695,000
1,500,000
1961-1980
1961-1970
Noon
11:00 a.m.
11:00 a.m.
19,000,000
1963-1992
10:00
—
1, Florida..
U
h
„
Dist
Sch
at
N
y.
lina
_
Dbtotet"u7--.--,
.
a
t
^
were
37,000,000
1962-1979: 10:00
a.m.
19,800,000
1,350,000
1,400,000
5,000,000
1,665,000
1963-1980
1961-1980
1961-1985
1961-1980
8:00
11:00
11:00
7:30
p.m.
4,536,000
1961-1989
2:30
p.m.
1,000,000
1961-1980
10:00
a.m.
3,180,000
1962-1999
10:00
a.m.
9,750,000
1962-1985
11:00
a.m.
4,400,000
1962-1990
11:00 a.m.
2,500,000
1962-1989
10:00
a.m.
1,950,000
2,300,000
1961-1980
1962-1990
11:00
10:30
a.m.
Escanaba Area Sch.
Dist., Michigan
Grand Rapids, Michigan
2,800,000
1,000,000
1961-1989
1961-1975
Greece Central S. D.„No. 1, N. Y.__
1,570,000
1960-1077
8:00
3:00
2:00
2,000,000
11:00
a.m.
1960-1999
1961-1980
11:00
9:00
a.m.
1961-1980
9:00
a.m.
Board
County, School Dist., Nevada
Armory
Florida.--
Petersburg,
Central School Dist. No. 2, N. Y.
aspect,
totaling over
$300,000,000 for the weeks ahead,
is fairly heavy. With bids for new
seasonal
a
generally
and
improving,
with
the
trend
toward
-
Marja Joint
ganta
Julv 11
JunIor college
,
July 1L (luesdaT
'
'considered reassuring by-Anne Arundel County, Marylandborrowers, the summed 1ftonths Anne Arundel County Sanitary
may
witness more underwriting •; Commission, Maryland
activity than is usuah New issue Ball State Teachers College of
behind
lags
year
a
to date. Despite this fact, the
for
the
•.
■
is
year
exceed
likely
volume
the
•,
"
—
Tr»™/Dc
J 0/11100
'
XT
•'
mcnaruboil
JNJeW JN
Y.
.
Indiana,
Indiana
Beioit, Wisconsin
Denton, Texas
z,
Henderson State Teacher's
number is
Digby 9-2850.
The firm is
Richardson
an
&
-
••//,
,
.
1,384,000
1,000,000
4,800,000
35,596,000
6,200,000;
8,750,000
6,000,000
5,100,000
of
Canada,
established in 1857.
Tr
-
I
NT)
cxl
nIw
Co.,.
that
;
of July 1.
William
with
F.
u. F. S. D. No.
Kahn
Mr.
Abraham
at
7
Kahn
will
Alan
and
R
^
.
will
continue
so
-
Kahn
Mr.
in
J.
was
R
-
Bernards
.
*
i
X1r.
With
formerly
Maturity
Bid
Asked
4.00%
3.85%
part-
a
9?fnnnnn lofislnnS 11:°° 3m'
1961-1980
4,000,000
1966-1990
1,425,000
1961-1989
T
7
r
i
Co., 210
1980-1982
3.50%
3.35%
Lean, who has been in the invest-
1978-1980
3.40%
3.30%
.
1,750,000
School
3%
1978-1979
3.15%
3.05%
3%%
1974-1975
3.20%
3.05%
Vermont (State)
3V8%
1978-1979
3.20%
3.10%
5,600,000
1962-1979
11:00 a.m.
1963-1990
3:00 p.m.
1963-1985
2:00 p.m.
1962-1986
8:00 p.m.
July 29 (Friday)
1977-1980
3.50%
3.35%
33/4%
1978-1980
3.90%
3.75%
Baltimore, Md.___
3y4%
1980
3.50%
3.40%
Cincinnati, Ohio
New Orleans, La
Chicago, 111
3y2%
1980
3.40%
3.30%
3y4%
1979
3.60%
3.45%
3y4%
1977
3.80 %
3.65%
office at 111 Kaiulani Avenue
New York
3%
1980
3.95%
3.90%
der the management of G. Richard
June 29, 1960 Index=3.423%
Farmington School District, Mich.
Au<y
New Witter Branch
Crpnin.
opened
1,500,000
(Monday)
4 500 000
>
Aug. 3 (Wednesday)
Wlchlta School Dist. No. 1, Kansas
2,500,000
HONOLULU, Hawaii—Dean Withas
1
lO'OO a.m.
•
,
Co.
8:00 p.m.
1,500,000
recently with Shearson, Hammill Seattle, Washington
&
7-
.
:
<
ment business for many years, was
ter
8:00 p.m.
,
District, Utah
Mac-
3%
Co.
8:00 p.m.
Noon
July 21 (Thursday)
•District No. 1, Florida
associated
Mr.
Noon
25,000,000 196o-2004
(Wednesday)
July 27 (Wednesday)
•^•ssumPlI°n Parish S. D. No. 1, La.
1,400,000
&
11:00 a.m.
1,532,000
Lake County Special Tax
3%%
3y2%
^
Thibodaux> Louisiana
Street.
11:00 a.m.
1961-1990
July 26 (Tuesday)
Uempsey-1 egeler
Seventh
a.m.
-
LOS ANGELES, Calif.—Ernest C.
West
2:00 p.m.
10:00
Davis & Salt Lake Counties Sewer
Beane.
&
with Dempsey-Tegeler &
11:00 a.m.
—
1961-1979
Comm. School Dist., Mich.
1
(Special to The Financial Chronicle)
become
1961-1985'
Township Sch. Dist., N. J.
County, Florida
Broward
™
has
a.m.
5,440,GOO
July 20
,
7
.Williston
11:00
(Tuesday)
^
Eugene' Oregon
.
ner
1961-1980
2,111,000
juj
assoc.1Pted Quincy
Co.
&
8,500,000
3, New York
University of Puerto Rico
a
DeLuca
a.m.
1962-2000
J«iy n (Thursday)
general partLesiie A Tayior,
as
10:00 a.m.
10:00
July 13 (Wednesday)
Birmingham, Alabama
Broadway,
Irving
1,872,000
a.m.
1962-1990
North Hempstead & Oyster Bay
StockmExchangl,£ In-
York
ner as
120
p.m.
p.m.
1963-1980
5,000,000
7
.
&
7
University of Texas
Abraham & Co.
Abraham
11,498.000
Connecticut
.
£)Ti HPT
Oivi
j.
Seymour,
in
in
t"v
-
K
Santa Clara County, California
affiliate of James
Sons
a.m.
p.m.
College, 7
Arkansas
Ullice
Lindbergh School Dist., Missouri-.
Montebello Unified Sch. D., Calif.
&
Sons,-Inc., Nassau County, New York
*
"KT J T7
"
a.m.
p.m.
(Monday)
District, California
university of Pennsylvania
J
easier
a.m.
-;
money
still
a.m.
iAAA
Yorktown, New Castle & Cortlandt
However, from
a.m.
.
,
,
_
_
July 7 (Ihursday)
that prevailed a week or two ago.
as
SERIAL ISSUES
1978-1980
10:00
Agricultural
District,■ Arizona
Power
v
related to the volume
moderate
(State)
Jersey Highway Auth., Gtd.__
York (State)
Pennsylvania (State)
1961-1980
Sedalia School District, Missouri--
New
City, N. Y
,AAA
.
No
District
.
.
1,925,000
July 6 (Wednesday)
Wisconsin
now
new
New
(N. Y., N. Y.)
p.m.
1961-1990
Newton, Massachusetts
Connecticut
New Housing Auth.
Los Angeles, Calif
a.m.
8:00
11:00 a.m.
2,250,000
state college, Alabama-
F,
•
•
is
11:00
1961-1980
Hamilton County, Tennessee——
Sales
calendar
issue
a.m.
2:00
Flood
,7- 7777"
Elko
The
11:00
1961-1989
1,500,000 ' 1961-1988
1,000,000
1961-1984
Texas
Control and
Conservation Dist., Calif.
Appleton,
week
Substantial
Still
•
1961-1989
12o!oOO
1
Co.
Water
8:00p.m.
a.m.
North East Ind Sch. Dtet., lexas
Randolph, Massacnuseus — —
,
.
July 5 (Tuesday)
Alameda
1961-1980
10:00
MacLean
and others. The bonds
MARKET ON REPRESENTATIVE
California
The
of Pending
Calendar
join their firm
Yesterday
(June
29)
another
important Pennsylvania Authority
came
into the - market for sub-
their buying and a "wait and see"
attitude has since prevailed. This
undigested
a
x
1,860,000
Y.
N
2
^ederland rna. a
a
last
when
23.
x.-j
..~
3.92%. This rep-;
less than one-half point Chicago, Illinois
Dist. of Columbia,
decline.
nounce
Other Recent Awards
Some interested investors deferred
large
No
D
S
was
bond
again, off again" bond markets,
How-
tions
a
June
on
previous it
resents
3.94%
at
was
reported
„+
1961-1985
,
general
attendant.
Cent
from retail accounts and members James Richardson
of tve group totaling about $285,- have announced the relocation of New Orleans, Louisiana
000,000. With this sort of over- the New York office to the 19th Redpndo Beach, California.—
subscription, allotments are likely floor,, 14 Wall Street, New York Sacramento, California
City.
The firm's new telephone Santa Ana School District, Calif.__
to be scanty.
repercussions
serial
Index
1959.
California
investor
tion given the $62,000,000 Oroville-
G-'Jntland
KUeen Je:xas
Barney &
bond
yield
The Smith
Turnpike
of
Wyandotte Irrigation District
poor
ago.
Company
reached
.
market, timing is necessitous, and
usually difficult, because of national and international political
cause
week
a^clr^,rIcff, )° yl,e from
3'5°% to 4-C<?%.' Allotments against
°rders are belng made sometime
portance
is
the
Dallas Indh School District, lexas
El Paso Texas ----------------
dollar.Br°°kba^ ^^NewYork°01
rlct *}°:
the
highs
the
markedly
market
Another
from
tion for the offering, with orders
yield increased to 3.423%.
represents
point
to
y*
.
in-
municipal and state revenue
and
authority bonds have
been mixed this past week. They
are
generally off about one-halt
aggregate
n
and
average
this
for
markets
Tke bonds awarded mature sena -i from 1962 to 1986 and are
c
It is reliably indicated that
there has been a splendid recep-
reported
was
The
T,rtol„
15,000,000
Texas
District
Qrhnn]
T
to
offering
quoted
ago
co nno ono
week,
this
3.75%
yield
,
.
Craft llarbor bonds were rejected.
late "
Commercial
Index
average
,
set
&
offer-
considerable
attract
volume
the
to
that
the
week
over
led
Whereas
yield
en-
betterment
week,
reaction
week
one
had
JS93.000.,00(]^bqndsbid for.
j
of these
obvious
high
7 7 7
,^°
Harbor bonds and $3,000,000 Small
interest
All
market
lively
a
previous
Se^ Sroup bids ^Or $75,000,000
™
Allyn
The
from
run
information, wnciv uu,
~
^
tSSSSfJSl, SSfcjWSK'ffi
billion
expected
today, June 30) was the apparent
cause
and, moreover, at the same
seemed to be absent.
should
C.
A.
others.
and
yields
issues
As .ll. ™°rked out, California
its
in
underwriting could
Avid Demand for California
.
of
ing
that
bidding would likely have been
*ess favorable to the state. ,
Treasury issues
considerably and exerted
eased off
doubtful
bav£ been effected.- Moreover the-
buyers
P°^ti0n1'*
The market for
it seems
Smith,
4.70%. "This
some
-
extraordinary
an
opera-
and
Company
list the bond issues of
specific sale dates have been set.
,
group on Wednesday. The
ner
.
,
amount
merged
a
Florida
Development Commission
(Pinof England
in raising the bank veloped and, at this writing, the ellas
County Road and Bridge
rate
from
five
to
six
per
cent over-all
market
seems
to
be
revenue) awarded $16,800,000
seems to us to have been the most
102%-103, and investor interest serial
(1965-1990) bonds to the
disturbing element in, a complex seems to be regenerating. The
group headed by B. J. Van Ingen
of bond market factors. The rele- Pacific
Gas
and
Electric
Com& Company, John Nuveen & Comvance of this action to our domespany's obligation to continue the
pany, Merrill Lynch, Pierce, Fentic
situation.
>
of issue, maturity scale, ana hour at which bias
wm be opened.
Florida
r
june 39 (Thursday)
large and interesting
issue
,
_
available, includes name of borrower,
where
the bidreoffering
on
yet known.
as
«p
in
up
ding. The reception
yw
$1,000,000 or more for which
,
.
Company
Thursday, June 30, 1960
. ■
tabulations we
following
Comoa/v
.
Scheduled For Sale
Issues
.QVCfPY
UdL&VL
MACKEY
bonis The Dlexe4i50&%
They Drexel &
bonds.
The
T
to
for the 1998 maturity. The
4.20%
Chronicle
Commercial and Financial
The
a
branch
.
1961-1980
9:00 a.m.
1961-1980
10:00 a.m.
Aug. 10 (Wednesday)
Terrebonne Parish, Louisiana
un-
1,300,000
.
Iberville Parish,
Louisiana^'.WW 000
San Mateo Jr.
College Dist., Calif.
5,900,000
2:30 a.m.
-
.•
—
Volume
191
Number 5964
.
The Commercial and Financial
.
.
Chronicle
Credit
The Consumer Credit
Conference
pand by 75% to
such
indebtedness
and
still
skepticism
level
of
1956
to
to
he
finds
depicts
here
a
important
an
envisions
credit
expansion
that
avers
major task
our
must
increased productive ability
potential
as
billion
has
over
But
credit
as
continued
$50
over
with
the
to
still
and
the
not
could
today
$65 billion level,
the $51.2 billion of
a
out
be
be
27% above
March 1960,
or
with
line
of
of $107
grist for
billion,
we
over
or
Now
billion
of
Total
characterize
to
are
our
spending
power..
1';
of
ulates
demand.
consumer
some
in
tion
ac¬
basic
of
income
64%
advances in
in
next
five
the
probable
gro wth
standard of
widely
prepare
in
suming
of
a
total
H.
Arno
and
as-
tial
national
Since
production,
or
a
we
poten¬
credit of about $107
than double the
total.
there
increase
must
add
billion
to bring their
1970 to over $330 bil-
growth
been
the
total
a
of
billion in the first quarter of 1960.
Discretionary spending
is
power
be the amount
a
It
means
tak-
hew look at consumer credit
an
important influence in
panding consumption and
ex-
States
should
to
grow
over
$750
years
inadequate demand.
Those who view with alarm the
and
over
needed to
ductivity is slowed down through
In
above
relation to
spending
level
of
consumer
point to the following
credit
dangers:
as
(1) The high
credit
in
level of consumer
dollars—the $51 billion
what
provide
a
this
credit
would
be
1940 per cap¬
■
%
,<
discretionary
the
power,
consumer
present
amount
outstanding
of
has
dropped from 31% in 1940 to 25%
in
To
1960.
relationship
reach
of
the
even
31%
would
1940
indi¬
cate that
when
income
personal
$76.1 billion, our
used
for basic
total
our
now is
the
total of $8
prewar
1940.
over
measure
of
our
produc¬
a
gain of 2.0% per year in per
capita productivity — well below
rate
we
since prewar.
Actually, in the 19
between 1940 and 1959, total
physical production
terms
of
creased
year.
demonstrated
have
per
constant
capita (in
in-
dollars)
by 58% or about 214% per
Bureau
of the
Census pro-
jections indicate a possible growth
population to 220 million by
1976 from the level of 177 million
of
$49.2
billion
after
popu-
of
of
1943-44.
"living costs—the
Relating
this
neces-
of
value
was
available
for
all
and
bil-*
of
the
of the
to
feed,
$140.2
It
have
(first quarter)
in
up
Commerce
formerly
Bldg.
a
San Antonio
5, Texas
Edward H. Austin
v
Elmer W. Dobbins
of
vice
our
a
was
a
at the
billion
These changes have resulted in
change in the proportion of dis¬
posable
income
tionary."
even
lion
income
other
than
posable
60%
income,
$205
-
to
supply
same
per
our
.
Sffectiwe Jfulty
CApitol 3-3051
•
j, 1960Teletype SA 162
clothing, and shelter
The
excess
of
MEMBERS MIDWEST
-V
t .
I
I
II
firm
name
Habt,
STOCK
as
inc
EXCHANGE
Bldg., San Antonio, Texas
in
1940.
discretionary
Continued
INVESTMENT SECURITIES
National Bank of Commerce
or
population with the
Bobby L. Walcowich
&
billion
capita standard of food,
president and director
Funk, Hobbs
v
Cur¬
and above what would be required
to
.
available
is discretionary income over
partner of Austin,
our
was
necessities.
rently, of the $345 billion of dis¬
{
change in
"discre¬
is
35% of the $76.1 billion of
or
disposable
for
that
In 1940 only $26.9 bil¬
company.
a
income
disproportionate change in their
"discretionary" income—in their
ability to save or to buy things
beyond the bare necessities.
Parvin, has been elected
and
families
one
.A
announce
Hart and
As
a
MR. W. LEWIS HART
CO.
has
result
a
to the next there has been
111 I
\9$nnouricincjf, l/ie formation of*
proper
it
as
from
Creston H. Funk, Hobbs & Co.
pleased to
a
because
families.
of
.
ore
as
character
moved
group
as in 1940.
annuai rate 0f $345.4
Offedit
bution
But disposable personal income
in 1960
serve
now.
our increased productivity and
rapid change in the income distri¬
however,
_
can
of
consumption
^
a
changed
jn phySicai units per person and of
the same quality
a
goes
argued, however, that
disposable
income
is
proper yardstick for con¬
sumer
increased
would,
same
as
be
can
not
clothe, and shelter. This
billion
something
but nobody
consumer
increased population
provide for the
and
proportion
prices of these necessities and be¬
cause
rod,
to
determine whether the pre¬
valid
$49.2
because
credit
at least has the
relationship of 11% or the
1950
relationship of 10%
were
this
billion
using
Consumer
•
war
rela¬
war
making up the 1940 standard
living or savings. $4.2 billion
represented personal sav¬
ings in 1940.
cf
of
to
on
other
''
H. AUSTIN &
1940
consumer
measuring
six times
National Bank of
local
and
during the
The
income
consumer
billion in
-
E.
(personal
Federal
15% of the $345 billion rate of
disposable income, is far above
the mythical ceiling.
dis-
after
present consumer credit
the
increase
in
personal
in 1959. So $750 billion of producoutstanding should total about $65
tive
ability for 1970 should be taxes, so the consuming public had
billion, or some $14 billion pos-','
looked upon as a minimum level
$205.2 billion or 7% times as much
sible
expansion
over
the
first
for long-range planning. If the ac¬
in the form of discretionary buy¬
(2) The rapidity of the increase quarter level of $51 billion. And
tual rate of growth in per capita
doubled in the last 10 years from why should the 31% relationship
ing power over and above what is
production experienced in our last
$21.5 billion in 1950 to $51 billion in 1940 necessarily be accepted as
needed to provide the necessities
19 years
(214% per year) were
in 1960.
the ceiling? There has been no
continued
over
the next decade for a 1940 standard of living. This
substantial evidence of dangerous
(3) The use of consumer credit,
our
productive ability by 1970 7V2-fold greater discretionary
overextension of consumer credit
prewar, never exceeded
11% of
would be $790 billion to $800 bil¬
in either 1940 or today."
buying power is available at the
/
disposable personal income after
lion.
'
:
J ..."
i :
taxes. It was 11% in 1940 and 10%
Just seven years ago—April 8,
discretion
of
the
individuals to
To support the $750 billion pro¬
in 1950—now consumer credit is
1953—I presented a similar analy¬
provide
for
increased
savings,
duction economy, which we can
sis of consumer
credit potential
approximately 15% of disposable
and must have by 1970 to avoid • additional items not enjoyed be¬
income.
before
the
National
outstanding
after
low as 314%
as
peak
^maintain the sa.m.e standard
qprppa^ed with
hvmg per ^capita for food,
.level"in mid,-,1959.
cloihmg, and shelter in 1960, at
.V $750 billion^ 1970 <lk-« 'con- ^inflated,prices, would require
$146.2 billion instead of
shelter at present prices.
pro¬
Credit
dropped
to
Jup&1956.prices
the $485 billion
the
our
Yardstick
taxes) has frequently been used as
a national yardstick of the amount
billion in terms of
ita standard of living for such ne¬
cessities
as
food, clothing, and
develop when
income
of
By 1970 our total production of
goods and services in the United
growing productive ability, and in
offsetting the inflationary pres¬
surplus spending power
as
was
lation
lion
"
;
servative
that
a
Consumer
Disposable income
items
a
•
tive ability since it allows only for
sures
1940
In
$750 Billion of Production by 1970
aging
of personal income after taxes that
consumer
for
reach
food,
clothing,
higher standard of living.; shelter—the remaining $26.9
remains
in
could
Misleading As
$205.2
level-
sities
play an important
part in raising our standard of
living fast enough to utilize our
a
credit
of
tionship of 11%
has
somehow
gained acceptance as the "ceiling"
beyond which it would be dan¬
$750 billion production goal, in.
gerous to allow consumer credit
1970, the discretionary spending to
expand. As of the first quarter
P°wer could reach $345 billion or of 1960, the $51 billion of con¬
increase of 68% above the 1960 sumer credit, or approximately
encour-
the
has
in
here considered to
_
Such
1940
than
discretionary spending power —
from $26.9 billion in 1940 to $205.2
more
as
'
credit
-consumer
minimum of $750 billion- 714-fold
consumer
1960
Johnson
Composition
Disposable Income Make It
population,
of
1929
$225 billion in
1961 and $270 billion in five years,
by 1965. And, on the basis of the
ing
-
.
should gear ourselves to
billion,
consumption will
■'
could
taxes
usual yardstick of disposable per¬
sonal income after taxes.
—
in
total standard
retail stores
$115
volume
of
our
This
posable
lize
1970,
Changes in the
spending
level
a
in
any
lower in the period between
and 1939.
Power
standard
of
living
after
taking into account present prices.
retail trade in 1959.
discretionary
by
in
actual
lion compared with $216 billion of
spending
power
level
that
about
living.
discretionary spending
power of our population. This dis¬
cretionary spending power is a
better yardstick of ability to uti¬
with
up
entire
our
no
the surplus spending power over of consumer credit that the econ¬
and above' what would be re- omy can carry safely. In the
pe¬
quired to supply a per capita riod from 1929 to 1939 consumer
standard of living for the basic credit
outstanding ranged between
necessities of food, clothing, and 7% to 10% of disposable income.
shelter equivalent to the
1940 In 1940 it was 11% then
change in
$84.0 billion to
keep
reached
particular, there has been little
recognition
of
the
spectacular
to
years
our
52% in
That
mean
In
the
for
time
history have we
such volume of
discretionary spending power. The
amount in 1929, for example, was
only $27.5 billion and was even
One-Half
and
discretionary
which
production
living!
and
purchasing
and in the resulting op¬
portunity for further substantial
expand
over
of
productivity, distribu¬
our
of
very
power
could
At
billion in the first quarter of 1960,
a
velocity of change in marketing and marketing concepts to
cope with the task of selling an
additional $165 billion of personal
consumption annually above the
1955 level to a total of over $475
billion by 1970. That's an increase
consumer1
by some as infla-itionary—on the basis that it stim¬
war
onsumer
credit
Expansion
changes
that have taken place since pre¬
ary
C
(4)
count
discretion¬
of
level
the form of
quality items of
better
experienced
Times Greater Than Prewar
if
economy
the
reach
employment goals so
quoted for 1970. We must
These fears do not take into
level
billion
Spending
Seven
Total
Consumption
and
economic mill.
our
credit is feared
present
national
$311.2
Discretionary
grow
for
credit
Consumer
at
the
of living in
or
food, clothing, and shelter.
mid-1959),
actually
early as
improvement in the basic
or
standard
Expansion of total consumption was over 7 y2> times as great as the
encouraging a rapid improve- $26.9 billion in 1940. Discretionary
ment in our standard of living—, spending power is defined here as
consumer needs that augurs
our
present $51 billion level,
our
$42.5
and
well
widespread
alarm.
total personal consumption of
$475 billion by 1970 compared
a
7
—
pointedly
consumption to match
to
power
The Important Need of the 60's
:
growing prosperity and
our
and
consumer
Expansion
expansion exists. Moreover,
$35 billion backlog of potential
is to expand
double
for
source
well for the future. Mr. Johnson
and
credit
consumer
with
more
must add to our level of
sales
to
consumers
the
huge
amount of about $165 billion (up
line
of
out
we
power
creased net financial equity of individuals, the writer is able to show
for
be
fore,
ity,
ex-
without,
"creating serious difficulties by
its further expansion."
is
dangerously high is controverted by
By employing such measures as discretionary income,"
changed income distribution, decline of debt to production and in¬
room
not
greeted
was
Mr. Johnson.
considerable
general unemployment and underutilization of our productive abil-
level of $42 bil-
a
discretionary spending
reached
prove
York
safely
lion
total
debt
consumer
our
could
with
J. Walter Thompson Company, New York
by alarmed critics of
credit
consumer
By Arno H. Johnson,* Vice-President and Senior Economist
used
New
at
University. My statement then that
Growth Potential in the 60's
Yardsticks
(2807)
on
page
30
1
(2808)~
Phillip
DEALER-BROKER
Morris
-
INVESTMENT LITERATURE
Fabricators
Pa¬
,
Bulletin
—
—
THAT
UNDERSTOOD
TO
THE
FIRMS
PARTIES
INTERESTED
SEND
MENTIONED
THE
WILL
FOLLOWING
BE
Industries.
Corp. —Memo¬
Pressprich & Co.,
Wall Street, New York 5, N. Y.
Understanding Put & Call Options
48
Publish¬
Howard Industries,
Dept. A-7, 419 Park Avenue,
South, New York 16, N. Y.—$3.00
(ten day free examination).
PLEASED
—Webber-Simpson
*
*
South
208
Finance
Scherck,
Boat
Stocks—Review—Batten
&
Co., 1835 K Street, N. W., Wash¬
ington 6, D. C. Also available is a
bulletin
Saber Boats, Inc.
on
Hemphill,
Co., 15
Broad Street, New York 5, N. Y.
Noyes
&
Canadian
Copper Shares—Analy¬
sis—Annett Partners Limited, 220
Bay Street, Toronto, Ont., Canada.
Carrying
Business
on
Booklet
Canada
in
incorporation
of
appli¬
cable, tax rates, etc.—Royal Bank
of Canada, Business Development
Department, 360 St. James Street,
West,
Montreal,
Que.,
Canada
(New York agency, 68 William
Street, New York 5, N. Y.)
—
business
Cement
on
in
Canada,
Stocks
Chemical
Review
—
Witter & Co., 45
San Francisco 6,
taxes
—
Dean
Montgomery St.,
Calif. J •
Pharmaceutical
&
Business
to
Including
in
Canada
—
a
survey
interests
in
Canada
—
Bank of Montreal,
Montreal, Que.,
Canada (New York office, 2 Wall
Street, New York 5.)
Hospital
Suppliers
Report — A.
M. Kidder & Co., Inc., 1 Wall
St.,
New York 5, N. Y. Also available
reports
—
Carter
on
Products
Inc. and American Book
Indian Textile
Co.
Industry—Analysis
Lukhmidass, 5
Harkisondass
Street, Bombay, India.
Investor's
letin
Digest
—
Monthly
Canadian
on
bul¬
securities
—
Canada.
Copper, Lead
Zinc—
dustry—Survey—Smith, Barney &
Daiwa Securities Co.,
Co., 20 Broad Street, New York Review
V.'"
v'' Ltd., 149 Broadway, New York 6,
&
—
Lamborn
&
New York
Dow
Co.,
Wall
99
Street,
5, N. Y.
Jones
tive
Quotas—Bulletin—
Industries—Compara¬
figures
Courts
&
Co., 11
Marietta Street, N. W., Atlanta 1,
Georgia.
—
Electric
Utility Industry—Review
with particular reference to Bos¬
ton
Edison
wealth
Company,
Edison,
Common¬
Niagara
Mohawk
Power Corp., Pacific Gas
tric
& Elec¬
Company, Philadelphia Elec¬
tric
Southern
and
Reynolds
&
Co.,
Company
120
—
Broadway,
New York 5, N. Y. Also available
are reviews of ACF Industries and
American
Zinc, Lead & Smelting
Co.
Also
available
data
are
on
Mitsui
Mining &
Smelting Co.,
Ltd., Mitsubishi Metal Mining Co.,
and Nippon Mining Co.
Japanese
Equipment
Industry—
Analysis—Yamaichi Securities Co.
of New
York, Inc.,
New York 6, N. Y.
are analyses of the
try, The Japanese
Markets,
Sheet
and
Glass
Winmill
&
Co., 1
Street, New York 5, N. Y.
Wall
New York
5, N. Y.
Franklin Letter
view
of
Nassau
—
conditions
Suffolk
and
re¬
in
Counties,
&
New York 4,
data
are
letin
an
International
Don
Buchholz, Inc.,
Broadway, New York 4, N. Y.
Atlantic
letin
N.
Industries
Coast
Edwards
—
Franklin
St.,
Seminary—Memorandum
Beneficial
Review
the
listed
in
and
the
the
industrial
industrial
Dow-Jones
35
over-the-
stocks
used
in
Alstyne, Noel &
Co., 40 Wall Street, New York 5,
N. Y. Also available is
review of
a
Great Northern Paper.
Greene
and
Life
Standard
Insur¬
St.,:
Manufacturing
Hut-
E.
&
Chemicals
—D.
Knowles
Stocks—Bulletin
Also available is
Gold and the Dollar Crisis:
Propo¬
Industrial
sals
critical
data
on
a
Inc.—Analysis—
Lamont,
Analysis—Zilka,
Inc.,
26
Street,
Ont., Canada.
General
H. Macy
—T.
&
Smither
&
Alder,
Co.,
Port¬
R.
H.
Macy
Co.,
&
&
Caterpillar
Stocks,
South
Tractor,
and
Utilities,
AMP,
Inc.,
Aircraft
Cessna
Company—Anal¬
—Hardy
New
Co., 30 Broad
Si
York
Co.,
Ryder
Power
Analysis
—
Inc.,
225
System,
is
2,
W i
review
a
&
—
East Ma¬
Milwaukee
s.
Weeks,
& Co., 50 Broadway,
4, N. Y.
Minute Maid
way,
Corporation—Report
McKinnon, 2 Broad¬
Inc.
H.
N.
Street,
Washington 6,
W.,
Supply Co.
—
Bulletin
—
Diebold,
Inc.—Analysis—Blair
&
Co., Incorporated, 20 Broad Street,
New York 5, N. Y.
Cohu
way, New
Data
—
—
available
are
data
General
on
Automation
Fairmont Foods
La
115
Teletype NY 1-376; 377; 378
Company—Anal¬
ysis—A. C. Allyn & Co., 122 South
Salle
5,
data
120
on
are
N.
Y.
Steel Company of Canada
Limited
Detailed analysis — W. C.
Pitfield & Co., Inc., 30 Broad
—
New York 4, N. Y.
Struthers
Wells
,
:
; "
.
Corporation
Analysis—Morris Cohon & Co., 19
Rector Street, New York
6, N. Y.
Symington Wayne.— Review —H.
Co., 72 Wall Street, New
Hentz &
York
5, N. Y. Also available is
report
United Merchants
Manufacturers.
7
on
Shields
&
Company^ 44
Street, New York 5, N. Y.
Wall
a
&
Telechrome
Manufacturing Corp.
Report —De Witt Conklin Or¬
ganization, 120 Broadway, New
York 5, N. Y.
; *
.
, 7 '
—
Torrington Company
Fahnestock
&
New York 6,
is a review
Co.,
Review
—
65
—
Broadway,
N. Y. Also available
of
Pacific
Lighting
Corp.
Torrington
Company—Analysis—
Sprayregen, Haft & Co., 26 Broad¬
New York 4, N. Y.
way,
United Biscuit Company of Amer¬
44 Wall
Power—Memorandum-
&
Co.,
Street New York 5, N. Y.
United
Gas—Memorandum—Per¬
shing & Co.,
120
Broadway, New
York 5, N. Y.
Morton
Manufacturing Corpora¬
tion
Analysis — Robert Garrett
& Sons, Garrett
Building, Balti¬
3,
Md.
Universal
Match
Corporation
Norris
Analysis—Eastman
Securities &
Dillon,
—
Trailer
Carreau
Co., 15 Broad Street,
Thermador
Corporation—
Analysis—Lester,
South Hope
geles 17, Calif.
Ryons
&
Co.,
Street, Los An¬
Yinco
are
Wyandotte
—
Irrigation
The
Illinois
La
Salle
Memorandum
Bruns,
Broadway,
New York 6, N. Y. Also available
—
Nordeman
&
memoranda
—
115
on
Stanray
Insurance
Co., 1
N. Y.
Wall
Rexall
Drug
Analysis
Rhoades
&
I.
—
Waters
Manufacturing
randum:—Stroud
123
—
York 4, N. Y.
Corporation
Street
du
Pont
Chemical
&
Company, In¬
South Broad St.,
Philadelphia 9, Pa.
Whitin
Machine
—New
York
Works—Analysis
Hanseatic
Corpora¬
tion, 120 Broadway, New York 5,
N. Y.
—
Carl
an
BEVERLY
HILLS, Calif. —Cen¬
tury Securities Company has been
Com¬
M.
formed
Loeb,
shire Boulevard to engage in a se¬
curities
business.
Partners
are
42 Wall Street,
New York 5, N. Y. Also available
is
Century Securities
&
Co.,
analysis of North American
with
offices
8421
at
on
Fred Colton, David T. Fleischman,
and
and
Hotels
Specialists in Canadian Securities
as
Principal for
Brokers, T>ealers and Financial Institutions
Grace Canadian
Securities, Inc.
Members: New York
Security Dealers Association
Broadway, New York 4, N. Y.
TELEX 015-220
•
HAnover 2-0433-45
•
NY 1-4722
Orders Executed
at
regular
commission rata
through and confirmed by
-
—
Report
—
&
Coil
—Cooley
Corporation
&
Company,
—
Analysis
100
Pearl
Membert: Principal Stock
The
;
Wil-
Sidney Dauer. All were forEastman Kodak,
.merly with Samuel B. Franklin Si
the Railroads. Co.
Aviation, data
Hilton
Company, Inc., 44 Wall
Street, New York 5, N. Y.
"■
Heli
Memo¬
&
Memo¬
Street, New York 5,
25
Company —
& Company,
Goddard, Inc. — Special Report—
Hardy & Hardy, 11 Broadway,
New
and
Torrington.
corporated,
Company — Analysis —
Cohen, Simonson & Co., 25 Broad
Street, New York 4, N. Y. Also
available is an analysis of F. W.
Woolworth Company.
Co.,
Broadway, New York 6, N. Y.
Harn
Union
New York 5, N. Y.
Street, Chicago 3, 111.
Analysis—
Trinity Place, New York 6, N. Y.
Mc¬
a
Ltd.—Memo¬
randum—Model, Roland & Stone,
120 Broadway, New York 5, N. Y.
Fruehauf
Security Dealers Association
Also available
York
Wins-
& Stetson, 26 Broad¬
York 4, N. Y. Also
Plywood.
TROSTER, SINGER & CO
New
ica—Analysis—Hallgarten
New York 4, N. Y.
Montana
randum—Francis
Elliott
& Distribution
—
Wall
sis—Purcell
Reliance
Bessemer—Analysis—Auchincloss, Parker & Redpath, 1705
Electric Autolite
(b) Natural Gas Companies
Transmission, Production
40
York 5, N. Y. Also
available is an analysis of Amphenol-Borg Electronics Corp.
New York
Broadway,
of
Cooper
low,
(a) Operating Utilities
;v
Review
—
Raytheon
Water
available
Also
Street,
4, N. Y.
Street,
son
Review
—
Weingarten & Company, 551 Fifth
Avenue, New York 17, N. Y.
Trading Markets in.
Broad
Street, New
pany—
25
Street, New York 5, N. Y.
623
land 5, Ore.
Dentists
HAnover 2-2400
Co.,
Company—
D. C.
74
Corporation.
Co., Inc.—Analysis
&
Watson
L.
t
a
Incorporated,
Street,
Lily Tulip Corporation—Analysis
—Laird, Bissell
&
Meeds,
120
Broadway, New York" 5, N. Y.
Also available is an analysis of
more
Gas
Southwest
813
Broadway,
N. Y.
Natural
Cascade
Consolidated
six
selected list of
Preferred
Middle
on
>
& Co. Ltd., 25
West, Toronto,
Adelaide
Company, 231
South
Street, Chicago 4, 111.
Street,
Steele
Building, Great Falls, Mont.
R.
Standard Packaging—D
Donnell & Co.
Electronic Corp.
Levy Industries Limited—Review
—Ross,
Southam Company
Ltd.—Analysis
—McLeod, Young, Weir & Com¬
pany,
Limited, 50 King Street,
West, Toronto, Ont., Canada.
Analysis•— Aluminum Industries Corp., Gen¬
Aviation
37 Wall eral
and
Transistron
Co.,
District—Bulletin
year
Corporation—Anal¬
ysis—The First Cleveland Corl
poration, National City East Sixth
Building, Cleveland 14, Ohio.
—
&
Jesup
&
Members Aew York
&
Davidson
A.
Columbia Broadcasting
both as to yield and
performance over a 20period — National Quotation
—
dum—Wineman, Weiss & Co. 61
Broadway, New York 6, N. Y. '
Bobbie
Brooks, Leeds & Northrup, Crown
Memorandum
—
Broadway, New York 6, N. Y.
Bureau
Cor¬
Street, New York 5, N. Y.
—Thomson &
14, Calif..
Decker
&
—
Averages,
Quotation
du
Inc.—Memo¬
E. Dooly &
Co
Ingraham Building, Miami 22,
Fla!
Schlumberger,
Ltd.
Memoran¬
Company,
market
National
—
Majestic Specialties, Inc.—Analy¬
Company—Study—Robert H.
Loewi
Firm
Data
Natus
on
Kusan Incorporated
—
Van
—
tractively priced issues — Paine,
lin National Bank of Long
Island,
Jackson
&
Curtis, 25
P. O. Box 47, Franklin Square, Webber,
Broad Street, New York 4, N. Y.
N. Y.
international monetary
Company
Company—Analysis—W.
Folder
data
are
Hornblower
Finance
Company
on
first
on
mortgage, serial bonds — B. C.
Ziegler and
Company, Security
Building, West Bend, Wis.
Black
compari¬
available
Indiana
Augsburg College and Theological
Paper
debate
Bul¬
—
Hanly, 100
Hempstead,
Electric
—
Milk
Oroville
Rail
the
&
Y.
Cary
—
ysis—Green, Ellis & Anderson, 61
Letter, The Frank¬
revolutionize
32
—
at¬
to
:
Bul¬
—
Huff & Co., 210 West Seventh
•
Franklin
Inc.
Electric
Long Island, New York, including Bureau,
Inc.,
46
Front
business
index
and
quarterly New York 4, N. Y.
survey
of business conditions—
The
Lines..
—
up-to-date
used
Averages
counter
Air
—
between
stocks
—
Co., 2 Broadway,
N. Y. Also available
Delta
on
Data
—
Co., 14 Wall Street, New
York 5, N. Y. Also available
is_ an
Monthly stock
analysis of Towmotor Corporation.
economic
review'
Stocks
Coal
Creek
Homsey & Company, 31
Street, Boston 9, Mass. Also
Pont,
Lancer Industries
New York 4,
the
Bi-monthly
economic
Y.
American Water Works
ton
Over-the-Counter Index
son
—Comparison & Analysis—Laird,
Bissell & Meeds, 120 Broadway,
N.
Los Angeles
&
Nomura Securities Co., Ltd., 61
Broadway, New York 6, N. Y.
showing
Fire & Casualty Insurance Stocks
Shearson, Hammill &
Co., 14 Wall Street, New York 5,
Nippon
Industry Co. Ltd.
and
San
Iron
on
Kubota
Works, Fuji
Manufacturing and Oki
Japanese
Company,
Antonio 5,
orandum—
ance
data
Co.,
&
American Greetings Corp.—Mem¬
Beneficial
Stock
Equities for Investment—Bulletin
—Gude,
peg., Man., Canada.
International
Petroleum—Memo¬
poration and Monterey Oil.
Bond
&
Pitman
Texas.
Ill Broadway,
Also available
Cement Indus¬
Machinery
digest
—Osier,
Hammond
&
Nanton,
Limited, Nanton Building, Winni¬
Island
Sugar—Memo¬
Crystal
—
Building,
North
In¬
Y.
Milam
Arkay
Wills, Bickle & Company, Ltd., 44
King Street, West, Toronto 1, Ont.,
N.
320
Street, St. Louis 2,
N. Y.
Goodbody
5, N. Y.
Sugar
York 4,
randum
Haman
Company,
—
Paper—Analysis—Hayden, randum—Emanuel, Deetjen & Co..
Stone & Co., 25 Broad Street, New
120 Broadway, New York 5, N. Y.
personal
—
Analysis
—
Missouri.
American
are
Co.
Richter
Fourth
of major Ca¬
nadian taxes affecting business or
Japanese
Cuban
North
System,
randum—Oscar
Scott Aviation
City Gas Limited—Analysis
Allied
—$4.75.
Guide
Bread and Butter Stocks—Review
—
policy—Robert Triffin—Yale Uni¬
versity Press, New Haven, Conn.
& Company,
Salle Street, Chi¬
La
Sons, 30 Broad Street
4, N. Y. /
;' ' ■: ; ; '
*
Inter
Aetna
Inc.—Analysis
4, 111.
cago
Ryder
Chemical
randum—R. W.
1960
C o.—Analysis—Joseph
York
k
.
—Herbert
LITERATURE:
Thursday, June 30,
New
Hooker
N. Y.
Filer—Crown
.
.
Ruberoid ;
&
Bache & Co., 36 Wall Street, New
ers,
IS
.
Street, Hartford 4, Conn.
Also
is a review of Mersick* Walker
York 5,
AND RECOMMENDATIONS
Chronicle
available
Missouri
■ V
and
cific.
Rubber
IT
and Financial
The Commercial
.
National
Auociation
Exchangee of Canada
of
Security
Dealer*
25 Broadway, New York 4, N. Y.
•,
Volume
191
Number
5964
.
.
The Commercial and Financial Chronicle
.
(2809)
their
or
To Inflation Means
to
explains
why
Britain's
ceding
hike
recent
the
in
bank
rate
and
favorable
to
check
reaction
the
of
higher
to
reason
pound during the seasonal autumn pressure. Nevertheless,
of inflation. Dr.
source
not
and
premature;
Government
measures
added
to
the
was
substantial
Einzig agrees,
be
can
goods.
The
main
decision
of
I
the
Engineering and
Shipbuilding Unions to ask for a
demand
that the measures taken are
economy
their
Confederation of
spending had been cut. This step, he says, would have
however, this is better than nothing;
>
measure
price of Government loans instead of depressing them,
and would have removed this
of
why the Government de¬
cided in favor of the latest drastic
Einzig prefers that instead of the above disinflationary measures
the
demands
wage
assumption
anyhow they would be able
pass
on
the increases to the
sterling and the removal of any cause for a
Dr.
raised
,
comfortable
buyers
he
Moreover,
on
Government
mands
the
increase. If
wage
other
and
pending
impossible to prevent
taken.
in the cost
this
de-
,
conceded it would be
were
of
increase
an
living, after its
markable stability for
reN.
two years.
private expenditure both on
Sterling responded favorably to
of the bank rate to 6% on June consumer goods and capital goods, the
disinflationary measures, and
23, and the simultaneous decision it
does
not
practice
what
it there can be no doubt that they
to call
up
from the banks and preaches. One of the Conserva- do inspire confidence as indicaimmobilize another
£73 million tive Members of Parliament, Mr. tions of the Government's deterLONDON, England—The increase
of
age
ment's determination
to
resist in-
Ridsdale, remarked in the House
of Commons following on Mr.
Amory's promise to cut down the
Government's capital expenditure
flation.
latest
disinflation-
that, had that been done this year
to
have
aroused,
instead of next year, the increase
of the bank rate would not have
-
indication
other,
ary
These
measures
the
of
the
Govern-
on
other
hand, much more criticism than any previous measures
did in recent years. While many
criticized
ent
the
on
"too late
and too
steps
criticized
are
opposite ground
—
"too
too
and
soon
autumn
yet,
that
AiKott W.
Albert w Van
'
would
fall
The
are
the
that
ctnnc
later that year
Even
the
so,
been
authorities
more
been
The
avoided.
would
increase
be
7%.
to
the
right
a
bank
they
have
But
and
the
of
to
chosen
be
may
the
deterioration
balance
rate
have
measures
argument.
of
a
fan
0f
money.
3%%
War Loan
to
Had the Chancellor sought
open
indications
the "trade
of
reappearance
ures
before the
erred
severity
for
on
they
And
the
corrective
situation
if
erred
got
the
meas-
of
undue
side
on
the
a
right
have
allowed
inflation
also
those
by
against
only by those
preferred if he
to
who
inflation.
develop but
strongly
are
Many
of
them
that
All
it
the
too
Excessive
of
will
slowed
r?Sri
/5eVfo«n
thiS y.^ar'
Budget of 1960-61 provides
Company last September.
Mr. Van
T
,
for
banking
«nh?SSSlr /!!•
Vice-President
m 1954.
impressive
more
America
At the time of his retire
:
kt
York
chemical Procedures, Inc., of North
Potts & Finchell
w0°d, Calif., it was an-
Stock
member,
asso-
Stocks^VaKiT LeTghton^and
also been appointed to the board's
Holland, have been elected to the
with offices in the Olympia Build- Bohrd of Directors of Shattuck
ing to engage in
committee.
a
securities busi-
Denn Mining Corporation, Thomas
Mr. Deane retired last year nes,. R. Frazier Potts is a prin- Harden, company 'President,
$50,000,000
their
current
curtail
V
Montgomery Ward Credit Corporation
that
in
when
1958
Mr.
4%% Debentures, 1980 Series
predecessor, Mr. Thorneycroft, tried to implement his
undertaking not to increase expenditure beyond the previous
Due
July 1, 1980
Interest payable semi-annually on January 1 and July 1.
year's level he encountered such
degree of resistance that he had
to resi£n-
7<iot redeemable prior to July 1,1968.
a
.
Anything Is Better Than
Doing Nothing
Needless
to
say,
Price
even
99Vz%
and Accrued Interest
though
sterling is defended in the wrong
way
it is much better than not to
llrn,
...
.
is
hoped,
bring
squeeze
.
.
the
will,
banks
may
be obtained in
State only from such of the several Under¬
lawfully offer the securities in such State.
any
as may
to
Lehman Brothers
Banks, Brokers, Dealers, Institutions ONLY
1
■
,
specialists in
Bottling Co. of New York
Blyth £/ Co., Inc.
1
The First Boston Corporation
.
Coca-Cola
Bottling Co. of St. Louis
Coca-Cola
Coca-Cola
Bottling Co. of Los Angeles
Eastman
Bottling Co. of Cincinnati
Dillon, Union Securities & Co.
Harriman
Ripley £5? Co.
Glore, Forgan & Co.
Kidder, Peabody £s? Co.
La^ard Freres £5? Co.
Incorporated
Panama Coca-Cola
Carl M.
Loeb, Rhoades £s? Co.
"
Merrill Lynch, Pierce, Fenner £5? Smith
Incorporated
Smith, Barney £s? Co.
Hon,Rose S Company
Established
1914
Trinity Place, New York 6, N. Y.
.
remem-
to
it
74
an-
down,
ment is
Coca-Cola
Exchange
and John J. Leighton, who is
executive
writers, including the undersigned,
are
in.
Thomas C. Deane, pioneer Los ment, he was Vice-President and
Named Directors
Angeles banker, has been elected Manager of the bank's main Loa Peter Darlington, a partner of
to the board of directors of Bio- Angeles branch.
Hill, Darlington & Company, New
Copies of the Prospectus
We
in 1925 with Corn
high bank rate.
rate and the credit
doing its best to discour-
career
in 1946 became Assistant
Trust Company. Both of these
.wit^ '.Chemical Bank where he
*
became Assistant♦
defend it at all. The higher bank
increase in
For
Gelder began his
J?™st JCompany and
p
expenditure of over
$1,000 million. While the Govern-
an
He
Vice-President
Moran began his career in 1919
with the former
Liberty
Bank which later
merged with The New York Trust
Company of which he became Assistant
Vice-President in 1954.
New York Trust was
merged into Chemical Bank New York Trust
means
expenditure. And cynics
ments
Government
spending is blamed for a large
part of the inflationary trend that
with Chemical Bank.
National
ambitious
be
economies.
some
Nothing has been said about trying to force the spending depart¬
feel that he ought to have tackled
the
situation
from
a
different
angle.
and
1950 and
representing the bank in the States of
Illinois, Michigan,
would
Amory's
criticized not
career
Moran,
does not foreshadow any adminis-
ber
would
began his banking
P.
Bar in
.
Nevertheless, the Chancellor of
the Exchequer, Mr. Amory, has
been
Division; Walter
i ?
.
side.
who
U'
YV ctj
Mr
Govern-
economies
A. W. Van Gelder
•
ylolUIl
them
depressing
schemes
called
control.
the
r*
q m ■
further.
after 46 years with the Bank of cipal of the firm.
nounced.
The Chancellor's promise not to
increase next year the Government's expenditure on capital inThis announcement is neither an offer to sell nor a solicitation of an offer to buy these securities«vestment
projects
beyond
this
The offer is made only by the Prospectus.
year's
figure
does not go far
enough to satisfy the critics. It
of
Midlands
of
fears
*%•
Minnesota and Wisconsin.
the
Deane Director
60.
to defend sterling by an economy
trative
out
on
i
i*.» ca vxv/j. j cix
0f the bank rate was followed by
overfull employment in the South
of England and in the industrial
measures
m
cause
no
run
w «.j
j
lost nounced by S. Louis Gaines, MIAMI, Fla.-Potts and Finchell
something like four-fifths of their Board Chairman. Mr. Deane has Incorporated has been formed
right than they
raise the
Whether
infinitely
than
S&nKteTorTeiXeks
taken such steps in 1957 it would
not have been necessary in
Sep-
tember
all
remove
Administrative
if K'£2 ofG^SuoTM
has
there is
another
expect
*•
•eC?^S Assistant Secretary in 1955 and Assistant
1957
pound,
ing to cut its own current expenditure. There is ample scope
War^Ms^^^reciation meanTthat
-
Step Is Not Premature
never
reason
the
dis-
further
a
loans
Government
in
have
been
have
of
advantages
r?gard t0 the fact. t?at
thl plnnnmv the Purchasing power of the
pound is only about one-third of
Si
what it was when the War Loan
nf
steps.
defend
im
Gelder, Metropolitan Division
Pr
A r'rknn 1
"rk'"'
Berkeley was admitted to the New York
Mr.
pound in the autumn. But in order
nn
rirootiv
drastic
to
to
Having
hlcfJ
tho
nn
much."
of
one
are
that they
authorities
the
°£
nfthp
For this
necessary.
the
on
is nowhere here
pressure
so
to
Walter P. Moran
R<srlrDlfl,r
—'
for an economy drive. There has
past had been inflation through cuts in public not been one for years, and unground of being spending over disinflation through necessary
increases must have
little," the pres- high bank rate and credit cuts taken place in all departments.
the
in
measures
been
mination
Berkeley, Jr.
unrno
ment should show that it is will-
deposits, is welcomed
anti-inflationists as yet an-
special
by
promotion of three Assistant
Vice-Presidents to the rank of
Vice-President by Chemical Bank New York Trust Comnanv has
been announced by Harold H. Helm, Chairman. Thev are- Nor-
bring their friends,
excessive
the
notes the
drive.
wage
run
v
to
that
6% and the credit squeeze is expected to bring banks to their
senses
and
The
too. And industrial employers will
have to think twice before con¬
on
Einzig
Chemical Bank Names 3 Vice-Pres.
so
more
By Paul Einzig
Dr.
senses.
During the last year
they have been simply
thrusting
credit
on
their
cus¬
tomers, inviting them to ask for
What Britain's Resistance
9
-I
1
I
1
'
'
.
1
l
•'
i
t
I
Corporation
'
White, Weld £/ Co*
June 28, 1960.
Stone £s? Webster Securities
Dean Witter £/ Co.
The
10
legacy of
future
Canadians.
We are in a position
to
learn a great deal from the
misakes of other, older nations. By
and large, for example, we have
avoided the creation of industrial
slums
on
the scale
reached in
Europe during the industrial revbehind
leave
Of Changing Circumstances
Winters,* President, Rio Tinto Mines,
By Hon. Robert H.
Toronto, Canada
of
olution
the
country's economic performance takes in
Mr. Winters' review of his
infinitum
of the portance of our resources I would
like
to
deal
briefly
with two
leading manufacturing industries,
aspects of them—the material and
a symbol in itself of the progress
the
this country
As
years
it
is
where
industrialized
in the
world.
I
an
the
try,
indus¬
will
We have
centres.
that
further
the
ment which will
carried
is
the
during
place
develop-
urban
woman
even
and
greater sense of both pracaesthetic
needs.
Al-
a
and
much
though
needs
more
be
to
ends, the ef-
of the
problem are bearing, fruit and we
are moving in the right direction,
ate
allow¬
ing for the erosion of the dollar
through inflation.
R. H. Winters
con¬
enabling
manpower
provided
to
on
industries,
resource
our
us
demands
additional
the
meet
with
us
and also
additional
an
public
a
of
awareness
of
the
tively low throughout most of the
period there was no shortage of
of
investment funds for purposes of
developing
Canadian
new
pros¬
of
reach for services which we can-
all these factors we have let Can¬
not afford.
Keeping
decade
present
with foresight
out
done to achieve these
$1,000 worth in 1945—a sub¬
achievement
States
We get pects.
when we
Perhaps under the impetus
only
difficulty
into
undoubtedly take
forts that have been made to ere-
means
United
and
War,
the economy as a whole.
duty to ensure
a
tical
stantial
Canadian
rubber
of payers', money. Continuation
such services, and the size
evitably
accompanied' by
the them, depend of course, on
growth of existing and new urban '.continued underlying health
Industrial expansion is in-
others.
with
obvious
"growth" in¬
dustry, like
Cold
higher living standards tor uastockpiling programmes, added to
nadians.
the demand for Canadian raw ma¬
There has also been a tremen- terials. The Korean War further
^ous growth in the various social
increased this demand.
Wide¬
services, reflected in no small
spread emigration of people to
measure in the fact that GovernCanada from countries
in warment in Canada now spends one
shattered Europe provided us with
out of every five dollars earned
the
experience
by the
profit
can
,
with
man,
rials
only in Canada
that
This
birthrate.
each
that
importer of many such mate¬
which could be supplied by
Canada.
The emergence of the
net
development, manulacturing and population has led to
the
and child produced $2,000 worth of goods and
services in 1959, as contrasted
the
would also
surmise
/ h
indication of our material
an
billion in 1959;
Over the same period, our popula¬
tion has grown from 12 million to
17x/2 million, through large-scale
immigration and the increase in
of the leading
nations
interde¬
lion in 1945 to $35
one
now
are
v
growth, our Gross National Prod¬
uct has risen from nearly $12 bil¬
toward the
point
Both
human.
pendent.
in
made
the
in
cities
older
the
moved
ex¬
materials,
of being,
many raw
into a position
towards, ever-in- consumer market for our own
Far too many of our urban cen- creasing services for government,
manufacturing industries.
tres have been permitted to grow It also reflects a growing social
In a politically troubled post¬
with
little
planning and poor conscience, on the principle that
war
world Canada appeared to
taste, to the extent that they are certain fundamental services are ;
neither inspiring to their present needed by the
population as a many foreign investors an at¬
tractive place to invest money,
inhabitants nor much of a legacy whole and should be made availand as interest rates were rela¬
to the future.
Here, surely, we able on a broad basis, from tax-
strength and im¬
Because of the
the rubber
On
we
World War, a net
of
porter
source
sacrifice.
industry in Canada is one
recent
Thursday, June 30, 1960
the Second
We have
point m growing
explosive growth of by Canadians,
This particular
many of our own cities and towns change in our economic pattern
has
not
been achieved
without reflects a universal trend, and not
balanced visible trade.
According to statistics
while
hand,
of
some
world,
ahead." Canada cannot, he adds, rely on capital imports ad
nor impose restrictions on imports in^ place of a better
the years
has
. . .
already piwen in Canada, through
steady increases in real pel^P"
ita, income that -'.growth jni re-
have
the exessive congestion
sanitary arrangements of
and bad
today's difficult market
for
19th century.
the
other
avoided
affecting its future and the need
conditions compared to years
following World War II until this decade. According to the author,
"successful marketing will be the key to Canada's further progress in
radically changed circumstances
to overcome
sound
a,,
,
achievement
creative
Canada Faces the Problem '
the
Financial Chronicle
Commercial and
(2810)
ada
with the Joneses in
this field is not easy—and perhaps
not practical—when the Joneses
are.".our neighbors to the South
whose average earnings per family are .several hundred dollars
.per annum higher than ours are.
It is asking too much, even from
up
abundant
our
resources,
to
pro-
become
bit oversold in the
a
investors abroad; but it
is against this background that
our
material living standards
have
risen
during the
last 15
of
eyes
and I think a brief review
years
of this kind
is
worthwhile in
or¬
prospects of fur¬
der to assess our
economic
ther
under
progress
present conditions.
The town of Elliot Lake, which
duce the wealth to support us on
Those
of us living in Canada
The first thing that strikes me
population and
increase, today have the privilege of wit¬ may not be an entirely felicitous an artificially high level,
in such a review is the number of
notwithstanding
the extraordi¬ nessing at first hand, and partici¬ example under the present cir.
■
.
'
factors, favorable to Canada's eco¬
narily keen competition which at pating in, the development of this •cumstances of the uranium indus- ^lle Economic Basis for Further nomic growth, which were outside
times must make it seem that it country's resources.
the control of Canadians. A com¬
Growth Markets
The experi¬ try, does at least represent a case
a
is engaged almost in a struggle ence is a special one, not given to of
completely planned urban
A condition of improving our parison with today's conditions
cfehtre designed to serve specifi- living
for survival.
standards broadly is, of shows that a large number of
many
nations,
especially ' those
But with the assured growth of older nations whose basic natural cally a major resource. develop^/course, the continued existence of them no longer exist.
The pentresources ' have
already been ment. With its tastefully laid-out a healthy underlying economy. 1 up demands of wartime have, of
a
society that moves on rubber
streets,
sidewalks, 'Underground believe that we have the means course, long disappeared. There
tired wheels, I am sure we can largely
exploited.
A citizen of
look forward with confidence to Britain, West Germany, Japan and sewage system and underground to assure ourselves of further eco- has been a partial thaw in the
even
an
parts of the United States] hydro lines, it compares most fa- nomic growth and higher living Cold War, and defense budgets
increasing demand for this
does not have the opportunity to
vorably with many of the sub- "standards; on the other hand, it is appear to be stabilizing. Ameri¬
commodity.
■
urban
developments of our big becoming increasingly evident can stockpiling of strategic and
see and take part in such imagi¬
Strength Based on Natural
•
;
•
that the conditions under which other raw materials has dwindled
native and vast developmetn proj¬ cities.
tinue
to
grow
industrial
-
as
development
.
.
Resources
In
ects
concept of a developing
future for Canada, our natural re¬
any
loom
sources
constitute
assets.
new
that
They
basic
are our
It is
wealth.
we
because they
Underlying
large
our
a
producers of
pleasant fact
well endowed in this
are
respect; and it is a fact that for¬
tunately cannot be altered by in¬
terpretation, as in the case of the
vagrant
stood
who
before
and
Seaway.
The
basic foundations of many
trial nations
/
and
the St. Lawrence
already set. We
still in the position
'
.
of the phenomena
One
20th
'
Sufficient in Itself
Growth Not
indus¬
are
of midparticu-
thought,
century
larly in North America, has been
privileged potters with almost our emphasis of the concept of
unlimited quantities of virgin "growth."
Now growth for
clay at our disposal, which we can growth's sake, like art for art's
sake, is nonsense; there must be
mold as we see fit.
some
higher motive.
Moreover,
Opportunity for Well Planned
growth has to be defined in relaCanadians are
Growth
This
ries
with
it
responsibilities.
is up
to
us
so
Some countries need to
activities.
privilege of ours also car¬
foundation-layers,
economic and social
tion to many
terms of
not in
is
to do a good job and
case
a
everywhere by
conditions of
the
the worst war in history, and the
population." India effects of rationing of most goods,
industrially, but certainly
grow
As
to speak, it
growth can take place are considdifferent from what they
were 10 or 15 years ago.
' At the end of the Second World
War, Canada had barely emerged
as a new industrial power.
At
that time the industries and economies of nearly all the industrial
nations outside North America
lay shattered. Among the world
currencies, the dollar was supreme. The inflation engendered
-erably
of
the
said "Your Honor, as
God is my witness I did not steal
the money."
The judge who had
another slant replied, "He isn't,
I am and you did."
judge
Knob Lake
Kitimat,
as
with
Other countries
in point.
industrial
established
an
need to develop better intechniques, in order to
base,
accumulated
put
purchasing
in the hands of
power
masses
of
and
organizations
who
anxious to buy goods, equip-
people
considerably.
Europe
.
and is under
of the securities for sale
securities. The
NEW
no
or as a
circumstances to be construed
solicitation of
an
offer to buy
as
any
an
offering of
and
they
expanded, to the point where
pose serious competitive
threats to North American indus¬
try. In
a
serious attempt to control
inflation and the steady erosion
currencies,
in
most
western
With
scathed industries of the United
with
increasing their populations. Many
Western European countries are
States and the new ones of Canada were able to take advantage
vestment
of the
of this situation and supply what
as
offering is made only by the Prospectus.
June 30, 1960
ISSUE
in
The Franklin Corporation
A Federal Licensee under the Small Business Investment Act
of 1958
welfare
their
to
seek
the
In
social
countries need to de-
many
velop
(providing funds and technical assistance to small American enterprises)
situation.
this
field
equitable
distribution of weath. The absence
1,000,000 Shares Common Stock
there has been
no
Copies of the Prospectus
the several Underwriters
as a
American
main
the
may
countries
speculation. Prior to this offering,
on
position of being able to grow in
most directions.
We can support
mariy more basic resource and
manufacturing industries and a
be obtained in any State only from such of
registered dealers in securities in such State.
much
if
Moreover,
Blair & Co.
industries
Incorporated
■
larger population.
our
manufacturing
are
Clark, Dodge &Co.
ing
wares.
First California Company
Hayden, Stone & Co.
W.C.
Langley & Co.
'
-
Shields & Company
Grimm & Co.
am
sure
dream
Spencer Trask & Co.
Shearson, Hammill & Co.
G. H.Walker & Co.
Tucker, Anthony & R. L. Day
.
,
to
grow-
a
buy
that all
of the
they will be able
Paine, Webber, Jackson & Curtis
*
I
facturers
Incorporated
continue
to
they
need
population" to
grow,,
Bear, Stearns & Co.
one
slow,
progress
very
Bache &Co.
is
of their rela-
causes
and often
erratic,
the
road
towards
higher living standards for the
majority.
Canada is in the rather unique
Share
public market for the common stock.
as are
un-
needed.
At
the
same
time it is fair to
remind ourselves that
positive
action
to
.
w.e
did take
restore
and
of Europe and the ;Far East
through loans and outright gifts,
tively
offered
The
cally secure middle class in many
of
are
unavailable.
were
augment the productive capacities
a
Latin
These securities
was
which
large, vigorous, and economi-
of
(Par Value $1)
Price $10 per
largely
services and
more
a
ensure
housing
their
manu-
day when
to achieve the
production runs
that the large population of the
United
States
p^e r m i t s -many
American plants to enjoy. '
The object of growth, of course,
must be to improve- living *^ndlong,
ards;
low
cost,
otherwise
there is
to
get their industries and
econ-
omies in order.
The Marshall
Plan for aiding Europe's recovery
will undoubtedly go down as one
of the most statesmanlike acts in
history. The Canadian contribution to Eurooe's recovery and to
the Colombo plan, though eonsid-
erably * smaller,
was
also
signifi-
has
become
a
Canada
dollar.
-
up
demand
and
in
Canada
the
pro-
the
in¬
foreign
The
emergence
European Common Market
competitive force is highly
significant in this context. More¬
a
the
prosperity in
increased
over,
Europe has led to
supply
source
of
North
tually
a
dwindling of
a
of
has
America
of
been
vir¬
production
high stand¬
vast island of
sustained by our own
ards
traditional
our
immigrants.
living and
brisk
demand
from abroad. These circumstances
have
made
high tariffs generally
unnecessary.
mand
With centres of de¬
production shifting to
Europe where manufacturing costs
are
lower it will
take
all the
and
statesmanship
States
competitor
strong
for
this
pent
recent
prosperity
•
While Europe and Japan were
making the beginnings of a recovery,
have
consid¬
more
increased
cant.
United
rates
in Europe and the recent more
rapid industrial expansion there
than in the United States, Europe
ment
and
countries
interest
erably higher than in
years.
compete in world markets and to
increase
domestic
living stand-
of such
of
authorities
monetary
established
were
any
eco¬
European and Japanese
industries
have
now
recovered,
ards, but again without appreciably
not
Serious Competitor
nomic aid,
dustrial
This advertisement is
a
Far from needing further
continent
courses
that
terests of
our
muster on
the trade
best in¬
overall economies in
we
to
are
can
chart
in
the years ahead.
the
I:
,
vided
an
additional
basis
for
spectacular further growth on this
continent. The demand for raw
materials for industrial expansion
in North America, and for reconstructiqn, elsewhere, provided the
basis for
Canadian
rapid
expansion
resource
industries
a
of
» This development was assisted
by a number of other factors The
little United States, traditionally
until
Resources in Good Supply
It is worthwhile to consider our
basic
this
resource
industries
background
cumstances.
of
Until
recently almost all
against
cir¬
changed
comparatively
mate-;
rapidly
our raw
rials have benefited from,
expanding demand accompanied
by varying degrees of shortage. It
is
now
difficult to point to any
for
Volume
191
Number
5964
.
.
The Commercial and Financial Chronicle
.
(2811)
which supply does not equal—or shortage of most raw materials,
more
than equal — demand, and' the demand for them continues to
this
situation exists, not against a
and
grow
enjoy
we
background of world recession, but abundance than most other coun¬
of continued economic expansion, tries.
Moreover, we frequently
have geographic and other advan¬
even though the overall rate may
have slowed a little from the ac¬ tages as a supplier of such mate¬
celerated pace of the immediate rials to the expanding industries
of the United States. In the light
postwar years.. There are now
of growing international compe¬
ample supplies available of wheat,
pulp and paper, oil, asbestos," tition
wood
'
'
-
copper, lead, zinc, aluminum,
nickel, uranium and iron ore, all
commodities
account for
which
a
major proportion of Canadian for■
eign exchange earnings.
-
r
/
:
'
T
*
'
*
*
.
.
little
As
nickel
three
as
"
than
more
ever,
In
to
order
headed
ring
where
apparent, that
external circum¬
also
many
as
helped us
control, have
to develop in the past
these circumstances
either exist no
longer, or are not as
-
T
been
both
time
here
time
from
done
favorable to¬
institutions,
educational
tuned to the times
Canadian
nent
to continue to prosper.
are
will
Difficult
Market Conditions More
The
world
is
a
tougher
much
competitive marketplace than
it was 15, 10, or even five years
and
"
ago.
As the fourth largest
•nation we
are
trading
vitally affected by
will
be
The
Republicans
the
that
fact
easiest
reconciled
are
have
to
recently,
he
will
nominee
be
and
the
to
man
give
the
boost
on
The
mittee
even
they
beat.
the
be
age
Kennedy
the
Man."
"Uncommon
There
nadians.
for
the
is
certainly
living standards to continue to
rise, but we must recognize that
eign trade deficits have increased
uncomfortably
in
recent years,
the
hot
a
and
cannot count
we
bed
of
Ku
every
in
its "Fact
Sheet"
telling
a
a•:
appeal
is
joke
dis-,
imports of foreign
oning.
'
Foreign debt has to be serviced,
and eventually repaid, in foreign
.
.
earned by
owned by
Covering, or masking,
our
foreign
trade
deficits by
means
of foreign capital imports
Canadians.
is
Rubber
the
other
or
audience.
There
devotees
is
no
drawback.
His
In
He
nominating
South
which
the
doesn't
bag for
human
To
of
breast.
imagine him
the
United
as
the President
States
let
the
surrounded
one
imagination
has to
soar
to
the
against
tion
that
This
announcement
It
used
call
is
rely heavily.
not
be
held
This
Some
expect to get a
vote from the
people argue that
in
to
beat.
could
that
Pennsylvania, a Catholic him¬
self,
are
doing some tall soul
searching as to whether religion
won't
be
serious
a
factor.
It
but
might be,
get
a
if Johnson
ticket
ANTONIO,
To Admit Moons
DETROIT,
nett
&
Mich. —Manley,
Co., Buhl Building,
Stock
Exchanges,
admit
Itobert
nership.
with
the
Bloomfield
•
like.
There
was
indication
no
the
field
in the
firm
his
make
J.
on
July 7 will
Moons
is neither
offer
an
for
some
sell
nor a
solicitation of
an
offer
to
buy
*
Hills
office,
Center.
any
of these Shares.
'
400,000 Shares
merly
a
Corporation
Common Stock
(Par Value $.25 per Share)
.
are
Lewis
W.
pleased
Hart, for¬
of Austin,
partner
Hart
Price
which cannot proceed
A point can be
when foreign debt servic¬
$5.00
per
Share
infinitum.
ad
reached
ing
places an intolerable burden
export industries in terms
ability to earn foreign
on
our
of
their
Copies of the Prospectus
as are
exchange.
effort must be
visible trade
Every
into
our
better
presupposes
end
years;
'
a
Industrial
expansion
continuing throughout
and while there is no
is
the world,
longer any
Coburn 8C Middlebrook
Incorporated
Pacific Coast Securities
W. Lewis Hart
and
Parvin,
has
Vice-President
the company
been
elected
and the firm's
D. H. Blair &
Company
Company
a
director
and
of
Peters, Writer dC Christensen, Inc.
Levien, Greenwald 3C Co.
name
has been
&
changed to Funk, Hobbs
Hart, Inc. The firm, located in
the
National
Building,
Midwest
is
Bank
a
Stock
of
Commerce
member
of
Midland Securities Co., Inc.
Aetna Securities
Corporation
•
i
the
Robert L. Ferman 8C
Suplee, Yeatman, Mosley Co.
Exchange.
Company
Incorporated
Frank Mullen Opens
much in our
Filor, Bullard 8C Smyth
Lubetkin, Regan 8C Kennedy
; •;
Basically, there is
favor
Hardy 8C Co.
balance.
highly
realistic approach to the c.01jditions and problems of the inter¬
national market place
coupled
with the recognition that present
conditions are far more competi¬
tive than they have been for many
this
be obtained from such of the undersigned
registered dealers in securities in this State.
made to
account
Short of
controlling imports, which is a
two-edged Weapon for a ma] or
trading nation, and which would
run
strictly counter to current
trends toward greater freedom m
international trade, the only ef¬
fective solution, and certainly the
most desirable one, is to increase
our
exports. Ability to achieve
bring
may
*
SEA CLIFF, N. Y.—Frank Mullen
is
conducting
a
securities business
from offices at 154 Maine Avenue.
R. E. Bernhard 8C Co*
*
part-',
time
headquarters
June 30, I960
process
a
to
to
Mr. Moons who has been
heavy Catholic population in New
York
City and in such upstate
cities as Buffalo, Rochester and
into
Ben¬
mem¬
bers of the New York and Detroit
Texas.—Creston
announce
arranged
way.
Manley, Bennett
Law¬
American-International Aluminum
Funk, Hobbs & Co.
John¬
of
W. L. Hart With
to
a
son-Kennedy ticket would be hard
Some of the Democratic bosses,
notably Governor Dave Lawrence
by Mr. Winters before the
of Canada, Toronto,
H.
being
against
Kennedy's religion is
Canada.
SAN
can
against
is
strongly
as
as
Johnson
being used against him.
New Issue
.
that
geographical posi¬
though.
just
Johnson
TheofferismadeonlybytheProspectusi
Funk, Hobbs
the
argument
him,
his
should
him.
rence
skimmed through Pennsyl¬
impression of a young college vania in his gubernatorial contest
graduate reciting his graduating by only 30,000. He is convinced
speech. He tells of the problems that his religion hurt him. Ken-,
facing the next Preside.pt,v-Pe says.. nedy, however, would be satisfied
that
the
times
call for great, to carry that state by only 30,000
dypapaic; leadership and as you votes. That, is enough to win the
listen to him, you wonder how state. He believes he
wjll carry
high boyish ambitions can soar in New York State
which
has
a
the
reply
argue
the
,
likely
are
When
it
held
in
is pretty much
Lyndon Johnson.
they
aside.
Kennedy's religion should not be
speech he gives
a
him
groups the Democrats
taking the big states and by¬
passing the so-called Bible belt
single
has
of
convention
for
states.
Johnson
will
develop that or¬
ganized labor and the Negro vote
are against him and on these
two
doubt
calculations
bloc
cast
rooms
discusses his Catholi¬
sisters
formidable
very
Association
,
and this can only be
exports and the returns
foreign investments
on
address
"An
Klux
arguing begins in the smokefilled
look
mature hair-do.
more
the
to
that he expects his religion to be
\ an- asset do
him
instead
of
a
Kennedy's boyish ap¬
that goes against him.
When he makes
at
he
a
no
before.
ever
dress the balance.
exchange,
greater ef¬
us
of
delegates but
when the kingmakers
get to work
on-
It is
nedy.
has
him
has
sizable
a
everywhere
he
goes.
If
nobody else brings it up, the ques¬
tion will be injected by one of
; his
..
.
now
made
he
opposition—Lyndon
indefinitely fort, imagination and ability than
capital to re¬
Moreover, for¬
eign capital imports are no real
solution to trade
deficits. They
merely put off the day of reck¬
on
require from all of
voted
ensuing election
the achievement of these ends will
*
-
was
in
Virginia
the primaries
room
to grow and for
economy
the
to.' cism
candidacy
occasion he gets.
by secret service men
In conclusion, I believe that the
present must be a time for reflec¬
tion and re-appraisal by all Ca¬
and
boyish and mischie¬
changed that and
But
Kennedy
Republican National Com-
tributing
60s
of
mind
around
has- vote
which
more
vous.
Vice-Presi¬
dent Nixon goes out of his way
at¬
the
getting
he
forehead
believe he will be the
profess to
our
are
no
campaign got underway in earn¬
est, he wore a cowlick on his
on
Democratic
that in corn-'
so
is
that
the first three bal¬
to
to
changes in the condition of
international markets. Our f°r~
any
,
he
unexpected
there
If the
pearance
it that
to
see
but
in
that
brilliant
a
among the women. They seem to
want
to
mother him. Until his
'
elsewhere.
and
We must also
West
Smith
To
Kennedy's
advantage
in
getting the nomination is the fact
has
fact5
Bar¬
encourage
had the bene- petition with other and power¬
fit
on
many
fortuitous circum¬ ful countries we can develop the
stances and doubtless will have kind of people domestically who
will be well equipped and trained
some
in the future we shall be
to tackle
and solve the unique
obliged from now on to look more
to our own native resources of in- problems that lie ahead of us; for
as
was so well said by
a promi¬
genuity and determination, if we
"
*
nomination.
-
has
as
Maryland
edly
balloting goes beyond
that, he is in trouble.
day. While we have
*
the
lots.
stances, beyond our
*
the
for
r
is
and
fanciful dimensions. He undoubt¬
Kennedy's youthfulness.
competitive. Some of the overfurther immigration it must be
His father asked him, according
supply is attributable to a re¬
recognized that we can no longer, to the story, what career he would
alignment of world economy
"sell" Canada to Europeans en-. like to follow.
coupled with nationalist urges on
Ris¬
"Why, I want to be President,",
the part of some countries to be tirely on economic grounds.
self-sufficient even when it would ing prosperity in Europe itself is. the son is reported as answering.,
now a powerful deterrent to-emi¬
"Oh, I know," said the father.
be more economic to buy abroad.
If we are to maintain "But I mean after you grow, up."
All this does not add up to dis¬ gration.
a flow of immigrants in the quan¬
aster for Canada, but it does un¬
Kennedy is only 43 years old„
while
Theodore
Roosevelt
derline
a
radical change
of tity and of the qualifications we and
require it may be necessary for became President at that
circumstances as we enter a new
age, he
Canada to offer special incentives
looked more mature
than
Ken¬
It
Minnesota
Klanism.
I should like to conclude by re-^ nominated
kinds.
A1
1928
it
Development of Human Resources
all
BARGERON
suc¬
ferring briefly to our human re¬
sources.
sumers and premium prices were
Firstly, in terms of quan¬
being paid for outside supplies. As tity, we shall certainly need a
recently as three years ago, the larger population if the economy
possibility of a uranium, shortage is to continue to expand and if our
was causing considerable concern.
manufacturing industries are to
Our concern is now quite differ- be given a chance to produce for
a greater domestic market.
ent as we proceed to close down
Immi¬
uranium mines. For most of these gration must continue to provide
a
large portion of our growing
commodities the reason is not that
needs
while at the.
we
are
being priced out of the manpower
time
augmenting our de¬
market because generally speak- same
mand for goods and services of
ing our raw material costs are
decade.
'
CARLISLE
in
However,
for
BY
being rationed to con¬
was
him
and certainly did not work against
him in West
Virginia.
...Ahead of the News
cessful marketing will be the key
With the Democratic convention
to Canada's further progress in.
less than two weeks away, Sena¬
the years ahead.
tor
-John' F.
Kennedy
seems
ago,
years
now
primaries that Kennedy's religion
worked
against him.
It
helped
FROM WASHINGTON
greater
a
11
Bernard Berk & Co.
in
will
the
Bloom-
12
The
(2812)
organizations, particular¬
ly
in
the
electronics industry:
Aerojet General, Fairchild Semi¬
conductor, Eitel-M cCullough,
Damo-Victor,
Lenkurt
Electric,
Ampex, Shockley Transistor, Gen¬
Appraising the Second
Largest Financial Center
i»
•
.
.
•
.
By Charles Prince, Ph.D.,* Financial Counselor, Los Angeles, Calif.
eral
of
deline¬
by Dr. Prince. In his appraisal the author describes the extent
ated
financing activities; details the various economic regions of the
of aircraft-missile-space
all, the
a healthy omen for further growth the "remarkable
and buoyancy of the California economy."
country; and notes the lessened importance
in
author
accepts as
resiliency
,
the
showed
California
With 156 memberships, 80
greatest
in the
Francisco Division and
76 in
San
only to New York as the
second
financial
of
in
open
ingredients to eventually become
large industrial city complex in
California. It has land, water, and
location. It is a railroad hub and
shares purchased,
amount of divi¬
fund)
1,-,
500,000 or 12%
and
of the total
dends
shareowners
individuals.
excess
the
in
interest
and
received
by
Indications
The
forward
unprece¬
dented in-
that the current
are
planning and direction of
the Pacific Coast Stock Exchange
in pop¬
destined
is
ulation, the
c ontinuing
continuing
make
to
contributions toward
constructive
the
dynamic ecoDr. Charles Prince
growth
and
its
diversifying
industrial
nomic
vitality and integrity of Cal¬
ifornia's capital markets with its
ever
increasing
investing
public.
Clearly, the Pacific Coast Stock
structure
symbolize California's Exchange bids a most encouraging
roots of capital funds, sources of omen
to
the
increasing signifi¬
money and credit, and its strength cance of the scope and operations
to
create wealth for its
sumption
The
as
well
as
of
creation
own
con¬
for export.
Pacific
of the
securities investment
mar¬
kets in the Nation. Indications are
Coast
that under
present leadership the
''
'
*
muuuu;
Government
million;
united
States
Securities
AI
Demand
Deposits
lusted $13,375 million; Total
Deposits $12,452 million.
Suffice
record
to
it
that Cali¬
enjoys the highest engi¬
neering-scientific
personnel per
capita in the country. This is one
of the potent factors in the accel¬
fornia
from
aircraft-
major distribution center. Also,
the completion of the deep
water channel from San Francisco
erated
missile-space to commercial elec¬
Bay, it will have superb port fa¬
sheet
cilities.
concerns
Finance, insurance, wholesaling
shipping are the backbone of
transition
1958
in
e
San Francisco's business activities.
$1,140;
Long
Moreover, the University of Cali¬
current
liabilities $590 million, or
in Berkeley and Stanford
University in Palo Alto have been
major catalyst behind much of
the Bay area's recent industrial
growth.
Los
Angeles is the only major
metropolitan area in the Country
to
record
unprecedented and
sus¬
tained industrial growth and eco¬
nomic development since the Sec¬
ond
World
War.
800,000 people,
It
or
represents 6,-
25% of the esti¬
mated 27 million
population in the
11 Western States. Concurrently,
the scope and magnitude of this
acelerated and diversified growih
complex has also established Los
total
term
$550,
capital
$1,140 million. Where,
of
when, by whom and how has this
electronics development been fi¬
nanced?
Some
clue
or
insight
might be gleaned from an exam¬
ination
of
California's airframe
a„7 te"
head,SS"
California. The
that there is
reason is
nn
mental agency
with the
a
not
register
with
the
investments during
the
years
1954-1958:
Retained
earnings $326 million, new longterm capital $188 million, or a
total of $514 million. In the light
securities aggregating
000,000 in
a need
q
£ ! e of
bgehaglf of SSM0'-
corporations that
were°$ ^
^alT^otirVafld^
Wonderbowl-Downey,'Inc"' a"d
Applications filed with
capital
new
in
$862 million, or a total of
assets
fornia
corporations
Si
p"mary
currently fh
n~
responsibility to comnud
these data on
continuing 7?•5
Moreover, securities sold to hlfSfide residents in CalifnrJ
ona
tered
$278 million, current
assets
and
a
mercial
California's
of
fixed
balance
electronic
indicate: Net
composite
The
tronics.
behalf of industrial
in
California Economy
a
a
in the Nation.
crease
first
in
with
value
total
in
end investment company
(mutual
of
first
ranks
ifornia
corpo¬
are
and
with a dollor volume of
$1,007,642,363. Additionally, Cal¬
publicly
rations
and
than 560 common
more
762,824
shareowners
of
with
Division,
Angeles
preferred stocks traded, the share
volume for the year 1959 was 47,-
cen¬
ter. Individual
owned
Los
has been un¬
•mivkw
structure,
financial
its
plans for further expansion, Sac¬
ramento appears to have the basic
a
gain among the states since 1956
in total shareowners, and is now the
aircraft-missile-space
the
industry in this area
Associates, Sylvania Elec¬
County and the announced
expansion and diversification taking place. AH in
the
reorientation of the entire
defense
complex.
As a conse¬
basic
quence,
Thursday, June 30, 1960
organiza¬
Investment Securities
tion set-up,
product diversifica¬
tric, Philco Corporation, United
Underwritten
tion, expansion into civil (indus¬
Aircraft, the Missile and Space
Recognizably, it is not possible
trial)
programs,
and depth in
Division of Lockheed Aircraft.
now to cite definitive
management development.
figures n
Similarly, with the current in¬
fleeting the aggregate total of in"
dustrial
development in Sacra¬
Changing Climate of the Southern vestment securities underwrote"
mento
and support the contention that
California ranks second to New York as a financial center are
. . •
towards
direction
the
in
forts
Heulett-Packard, dergoing far reaching changes
Electric,
Varian
The essential criteria that make up
have,been
dustrial
Chronicle
the defense industry
making concerted ef¬
in
trators
giant in¬
California by many
ern
Commercial and Financial
this
State
tho
aggregatedS«Un^s in
of tne scope and
magnitude of tnis
growth, it is worth noting the cur¬
transition-expansion
pro¬
rent
o^seraritfe.TT the
doliar values
for sale in
this area by these cor¬
Lockheed,
Northrop,
American Electronics, Kaiser In¬
Californi?
in
grams
fihn?
by the
porations:
ort^o!
^
°
^^"mted^transi?
dustries, North American, Hughes, Our
Angeles as the largest industrial
Hoffman
Electronics,
Beckman
fand cqpimqreial center in the West
broaden its perspective and widen
tion
Packard-Bell, Col¬ Hon from manned
and as the second largest retail instruments,
aircraft
tn
of this growing coastwide finan¬ its scope of activity still further
lins
Radio,
Thompson
Ramo- missile-space
anH
in
•
j
market
in
the
country.
commensurate with, the growing trade
cial
organization. • Actually, this
Wooldridge, Convair, General Pre¬
consolidation of the San Francisco dynamic economy in the 11 West¬ Moreover,, the <re,rparkable resil¬
cision,
Garrett, Hycon, Aerojet,
iency and bouyancy of the Cali¬
Stock Exchange which was found¬ ern States and as the reflective
Litton Industries, RCA, Aeronufornia economy are healthy omens
ed in 1882, and the Los Angeles bellwether of the second largest
tronics
(Ford Motor), Raytheon,
for further growth. >
Stock Exchange which was found¬ financial center in the country.
A-C Electronics (General Motors),
With Bank of America, largest
This
entrenched, pattern
ed in
pro¬
1899, brings together " the
Chrysler Missile, Bendix, Clary
basic sources
of economic
two principal investment security in the country, headauartered in vides
Firestone Tire and Rubber, Sum¬ significant
trend,
„nfXPanen?e
markets on the West Coast into San Francisco, and with Security- and financial horizons with con¬
mers
Gyroscope, and the major
First National Bank, fifth largest tinuing sound expansion, and of
an integrated single operating fi¬
insurance companies.
and ' underwritten
a
in
behalf
nf
nancial organization. Each former in the country, headquartered in emerging
business opportunities
These
exemplifications
high¬
Exchage is now a Division of the Los Angeles, as well as four other not only in California but through¬
headquarterlight the methodologies and prac¬
Pacific
Coast
Stock
Exchange. major commercial banks in the out the West.
$1,tices
in
consonance
with
the 000.000.000
In the Los Angeles Metropolitan
Each Division brought to the Pa¬ State, California has most ample
cific Coast Stock Exchange his¬ banking sources and facilities for Area alone, the aircraft-missile- changing economic climate on the
Pacific Coast. Recognizably, it is
Sources Df Funds for
toric cornerstones — one of more its continuing phenomenal indus¬ space industry's current backlog
difficult to delineate precisely the
Investment in Mortgages
than 75 years, the other of almost trial and economic growth, as well of unfilled orders exceed $3,000,Stock
Exchange in January 1957
has demonstrated the effectiveness
Pacific Coast Stock Exchange will
CU/rently
.
Unfe?™?
^Wferld"
easiness enterprises
aggre^ed
60 years.
a
Board
Management is vested in
of Governors of eight
facilities for concurrent growth
as
throughout
000,000. Authenticated basic facts
and
Coast.
analyses
reveal
that
even
of
sources
nating
mortgage
Eastern
from
funds ema¬
institutions
Recounts Industrial Growth
Suffice it to note the expansion
between the San
Francisco and Los Angeles Divi¬
and
sions. '
rently being effectuated in North¬
annually
diversification
program
cur¬
prior
to the launching
of the
Sputniks by the Russians in Octo¬
ber 1957, the ownership manage¬
ment groups with their respective
•MUblic statements
business
and
financial
adminis-
distinguished from those orig¬
inating in California. Substantive
capital formation has resulted in
monev
flow
of capital funds Eastward
and, in turn, invested by Eastern
have
this
precedented
trend
announcement
is neither
an
offer to sell
The
nor a
solicitation of
an
offer to buy
any
of these securities.
offer is made only by the Prospectus.
NEW ISSUE
,
.
■
year
these
are
of this
dynamic
un¬
growth
figures
for
the
1959: Dollar volume of real
estate loans recorded in Southern
June 29, I960
\
respon-
f
real estate. Indicative
This
by
te? ba7ers'private
as
financial institutions in California
members, four from each Division,
under a chairmanship that alter¬
nates
the West
California exceeded $6,151,000,000
testify'fe £ 1"vestment bankinn th® fact that Eastern
ers
^7"^!
been
mnricycwvl
serving
J
the
biggest
Natim?6*?91^ in Cabf°rhia
Durin/h/U,
ever witnessed.
1
California
State
te
+
laSt Six years.
een the leading
tGrms. of fusing starts;
thl nt*r °Uni
for about 16%
finance
housinS starts. To
having
a
of
l
§e volume of build?
n necessary to rely
savtele uP°? funds from mutual
ifornia
aggregated $3,482,000,000 associate
' savings and loan
comnani2nS'^and life insurance
19580mPared With $3'036'000>000 in irihntho
■Dunn& thea past six
^pears
lessened
?^incma,se,of ?6% over building
those in'
1958.
Total
volume of
in? if
u
heavite
and constructions in Southern Cal¬
Lee Motor
Products, Inc.
167,000 SHARES OF CLASS A COMMON STOCK
Similarly, during the past dec¬
ade
(par value $1.00
per
California has ranked first in
the growth of its savings and loan
institutions.
In
1959,
the
total
share)
mortgage portfolio of the savings
Price $3.00
per
share
*?
fi9Q°o«Ji nans<?ociations aggregated
fn'S??'954,000;
combined
968,005,000.
As
of
there
239
assets
$9,080,929,000,
savings
accounts
$7,351,850,000 and new loans $2!
Copies of the Prospectus
States
where
may
the securities
be obtained only in such
may
were
associations
be legally offered.
total, 170
69
were
in
Dec.
31
1958
savings and loan
California.
Of
the
state-chartered and
Federally chartered and
were
under the supervision of the
Fed¬
eral Home Loan Bank
System and
Godfrey, Hamilton, Magnus SL Co.
hence their mortgages are
insured
Incorporated
mortgage market
Eastern institutionincrivrV °rsA wiih a correspondlenrw
effort by local
lenders greateF
and investors to finance
in,
on
in? P?
al
the
continuing high level of build¬
ing
activity.
rioK+dicatiVAe
of tbis mortgage
h?n«'+apar from other types of
vre?Iterm70bl^ati°ns, is the ag-
Lg
,
valuation of building
per-
2ft ln Area aloneAngeles MetroLos
P
itan
a
during the past
$L513,000,000 in 1958
in
1959. The
anH
000,000
supply of funds
available for in-
*n real estate mortgages
80T Tgfi1 a?c,ordingly. Over 2fy b® restrained in the months
lno
California s savings and an?loan assets are located in the
1? rising costs of money
10
southern counties.
terS 1.ncrfasing fluctuations in in¬
terest rate levels.
u
Robert L. Ferman
Co.
Roman SC Johnson
FrankKarasick & Co..
Incorporated
Moreover,
My-
" '
I
Mf'
the
resources
of
and-credit generated on a
continuing basis are also reflected
■money
Tuition items and
Twelfth
Twelfth
state?
,me™ber banks of the
Reserve Bank
p
Federal
ic^avi?g
istics of
assumed the character¬
a
contra-cyclical industry
lonwide, the "construction inustry in California is -likewise
oject
to
the
changing
money
market conditions.
Thus, as
funds
Volume
191
Number 5964
and resources flow
into other
of the
tors
,
peaks
reached
be
has
activity
recent
than the
And
years.
are
maintained if for
reasons
radically decreased in Ameri¬
industry.. • * » »■' *
•*.
Second, labor leaders, assuming
The Problems of Inflation
can
recede from the
in
Relatively high levels
to
(2813)
sec¬
in Southern
construction
economy
California,
may temporarily
The Commercial and Financial Chronicle
..
likely
other
no
influx of population.
of
the
productivity, and
dynamic industrial growth
in Los Angeles
County is continu¬
to
the
facing
us
are
tic and
international challenges,
petuate
a
we are to meet our domes¬
strengthen
are
impressive.
I
The transition from manned air¬
craft to
the
private
sector,
and
at
the
time
same
that there
sense
issues
missile-space and to elec¬
the
on
four major
are
minds
of
American
tronics industries is also reflected
in the current
a
inflation; ana
particularly
of
the
Los
Area.
The
decreasing
airframe
the
employment is offset by the in¬
creasing electronics employment.
In February
1960, employment in
the electronics
follows.
as
employment figures
Angeles Metropolitan
.*
of
t
n
lem
creep
prices
i
an
industry increased
around
continued
upward
of
in
it
1
e rva
shall
two
that
would
when
try decreased to 170,000 workers.
terial prices
of
have
terms
of
raw
been
people currently
employed, the electronics industry
falling
ranks
the
second
the
in
Los
Angeles
was
volume
and
encing
represents
of
one
major sectors in the national
the
of
approach eleven billion dollars in
of
with
compared
as
the
ten
as
a
Walt W. Rostow
idle
are
that accelerated military em¬
phasis
on
missile
exploration
space
defense
will
result
and
in
development
Thus
defense
electronics
where
than
more
cluding
billion
be spent on
to
total
the Pacific
1920's
Similarly,
of
total
be
to
pears
market
in
industry
two
a
sales,
billion
1960, with the
ade,
dollar
but
Angeles
Robert
Hornblower
Miller
it
is
and
that
all
in
Pacific
Coast
Exchange and conducts
ing
principal
In
office
the company
addition
in
and
was
offices
in
brokerage
19
ing firm and is
the
New
Los
York
in
of
and
other
those
then,
the problem?
•
In
itty
inflation
three
inflations What
is
"
view
the
problem
heart
lies
of
in
the
these
circumstances.
and
assume
that
money
vital
capitalism—
could create
economic
by
administrative
A
the
level
of
relation
in
The
specific
to
employment
inflationary
lies
terrains
outside
of
stitutional
be
that
pressure
these
formal
we
familiar
economics.
I
which
arrangements
changed
inflation.
if
we
to
are
And
quite spe¬
cifically my proposition is this: by
assuming that inflation is the nor¬
condition ' of
business,
act
labor,
to
our
economy,
and
government
perpetuate inflation,
to the cost of the national interest.
break this vicious circle
proposed
measures
economy
as
a
whole
this
an
should
goal
environment
level is stable
be
achieved
where
or
dustries must be permitted as the
structure
and
technology of the
changes. It should be
accompanied by an agreed defini^
economy
tion
of'
an
appropriate
a
productivity index, much as
cost of living index was agreed
at an earlier time in our
history;
provision shoulld be made for the
regular
publication
of
It
is
Exchange
principal
-
security
*
$8
tasks
of
government
par,
definition.
The
resolution
also provide for the
Continued
any
requires
increase in such
an
on tax receipts
sluggish rate of growth must
judged
I
are
am
serious
a
aware
is
that
Value
and One 1962 Warrant and One 1964 Warrant
the holder to
purchase, as a unit, one share
9% Subordinated Sinking Fund Debenture
at a unit
price of $9.50 plus accrued interest/The warrants expire De¬
cember 31, 1962 and December 31,
1964, respectively, and can be
exercised at
matter.
one
anytime prior to their expiration dates.
great deal of
a
well
as
being
to
troubled
as
given
contribute
from
shall
by
to
this
the perspective
try
specific
not
tions
be
to
I
as
matters
Offering Price $15.50
the
per
Unit
dia¬
of
an
by
concrete
as
can;
for
these
which
are
much
vague
am
possible
straightaway, that
trying to present is a
new
mixture
of
approach, to
problems
rather
this
than
set of dogmatic answers. I would
not
G. H. Walker & Co.
Beil 8C
generaliza¬
me say
I
pretend
swers;
Copies of the Prospectus may be obtained from the undersigned only in states where the
undersigned may legally offer there-securities in compliance with the securities laws thereof.'
Hough, Inc.
by old slogans. Neverthe¬
or
less, let
what
,
on
of these securities.
of:
par
but
to
it
have
may
all
be
the
useful
an¬
to
McCarley 8C Company, Inc. Goodbody 8C Co.
Courts 8C Co.
Hanrahan 8c Co., Inc.
'
would
possibility of
9% Subordinated Sinking Fund Debenture
due February 1, 1985
of Common Stock and
and
major
member firm of
One
Each Warrant entitles
logue
bank¬
Stock
to
economic historian and economist.
21
a
con¬
resources
produc¬
tivity data in terms of the agreed
and
be raised from
advanced
has
private
average
labor
Bevis Shell Homes, Inc.
Stock, 50^
in
price
should
200,000 Units
at
paper
its
the
falling. The res¬
recognize
that
flexibility
in
wage
levels
as
among industries and within in*
olution
June 30, 1960
Five Shares of Common
over
period which would iron out
short period variations; and that
some
by creat¬
Each unit will consist
are
increase in labor productivity for
the
offer to sell nor a solicitation of an offer to buy
offering is made only by the Prospectus.
sluggish¬
the
on
a
First, the formulation by the
government, after consultation
with business, labor, and farm in¬
terests, of a statement of national
policy which might be incorpo¬
rated in a Congressional resolution
or
act, along the lines of the
Employment Act of 1946. That
policy should state that the in¬
crease in the real wages of labor
should approximate the average
am
asserting that a part of our
problem lies in attitudes and in¬
limit not merely on the
existing
support the na¬
military and foreign policy
thought
which
1888,
This
with
Six-Point Program
six
ISSUE
3%
our
common
so
intervention
The
NEW
na¬
the following.
the whole process of wage
price setting. But I am assert¬
ing that a large component of the
an
new
government.
business community to these four
issues. It is the purpose of my
bank¬
to
average.
constructive
Stock
a
environment
dustry and labor and with mini¬
duty to protect. Price competition cious circle. I believe it possible to
a
chance, at least, that these
moves
mum
to
—the heart of
a
is
high degree of flexibility for in¬
and
mal
is
moves.
there
think
objective and would do
frame
now
First, businessmen
of
capacity
must
of Inflation
analysis
demand
face
I
which would achieve the
can
situations that frame
effective
of
rate
below
a
our
a
be
a
exchanges.
than
in
outlays, the effect
1926,
investment
a
faster
rising
fallen
can
home
key
Angeles,
Weeks,
cities.
and
produc¬
general
If, as I happen to believe,
position abroad as well as at
our
Glendale, Calif.
&
established
an
together
tional
ne¬
of
master
First,
these
negotiation of particular wage
rates and the setting of individual
prices; and I am familiar with the
observe
home.
has branch offices in
Santa Monica and
Hornblower
in
This advertisement is neither
sluggish
schedules
tax
general
a
investment
and
business.
rate
a
are
a
has
tion's
I
brokerage
at
costs
which
general
Established
the
prosperity.
can
increase in American
Revel Miller & Co., Inc. is a mem¬
of
we
sumption but also
Inc., will become associated with
ber
Cause
to
the
Europe and Japan catch¬
sets
ness
Richard
expected
firm.
in
bring
economist I am, of course,
the particular
supply
an
of
propose
interrelated
with the United States in
historical
personnel of Revel Miller & Co.,
the
of
inflation.)
of
up
years,
partners of Hornblower & Weeks,
and
arms
/Fourth,
&
become
will
rate, lies
leaders
and demand
American growth which, in recent
proposed agreement,
Revel
our
achieved, would
inflationary pressures.
Basic
fair
six
six
of
would
I
York
and Robert Revel Miller,
Miller
A.
ease
The
a
and
only
government sanction of infla¬
As
de¬
this objective
areas.
President of the West Coast firm.
Under the
also
of
if
possible that an
expenditure may
course,
another,
labor
Buhse, chairman of the executive
Weeks,
waning
postwar dec¬
pillars
technology
ing to an announcement made
today (June 30) by Howard E.
of
we
difiiculties,
requirement of
increase
which,
'
require
back to work. Given the
men
aware
that
believe
closer to full employment,
will only heighten the
us
Western
ing
operations on July 1, 1960, accord¬
committee
growth
room
will
that
after
Co.,. Inc.,
will
first
the
balance of payments. In one field
City and
of Los
consolidate
their
&
precisely
see
Third, the problem of foreign
competition and of our weakened
Hornblower & Weeks, with head¬
New
the
the
danger
To Consolidate
in
In
asituation
to
replace
to
and
as
push
propor¬
Weeks,RevelMiller
Miller
employment.
hard
increase in
Ilornblower &
quarters
moved
achieve the momentum
(It is, of
ap¬
tionate market share in California.
Revel
not
face
we
is
it
of
rate
problem
the
of the hotel
out
method
achieving
Taken
wages will tend steadily
The bbject and Method
rise, and that they cannot af¬
impulses from the automobile in¬
ford to lower prices, as produc¬
»;•
: of the Proposal
dustry and from housing construc¬
tivity increases, without endan¬
vThe
object of the proposal I
tion, which saw us through the
gering the profits it is their legal shall outline is to break this vi¬
industrial elec¬
tronics, accounting for almost onefifth
has
full
to
necessary
billion
one
which
likely to
for
dollars, in¬
estimated
an
dollars
Coast.
six
probably
which
—
which sectors of the economy are
expenditures.
procurement
will
capacity
disappointing boom; that is,
mid-1960
a
big increase in electronic research
and
industrial
rapidly
higher
tivity,
this year takes the form of a some¬
boom
permitting
payments
to
accelerated
and of
—
All segments of the elec¬
tronics industry will contribute to
this year's sales gain. Indications
a
policy
problems
higher
a
the
of
well
as
unemployment itself
what
while
and
to
balance
billion dollar volume reached last
year.
the
solve
levels of employment than
present
answer
quite
levels
Second,
problem
the
1960,
would
inflation,
the
tionary settlements.
prob¬
problem
would agree that the fundamental
unemploy¬
ment.
the
the
and
growth; and I take it also that
experi¬
high
econ¬
The electronics industry an¬
ticipates manufacturers' sales will
omy.
at
economy
Metropolitan Area, and in dollar
it
which
ma¬
be
American
an
the
gotiations, the net effect
productivity. I take
common
objective
our
be
higher
In
and
farm
Must
discussion
problems:
American
to 130,000 people, in contrast, em¬
ployment in the airframe indus¬
That
this
inflation
of
The
for
assumption that businessmen and
Solved
focus
another of
no
criterion except to find a
bargain which will get the nego¬
tiators
labor
Problems
Be
I
in
it has
not
price policy.
and
wage
govern¬
as
do
proposals
tailed government management
and price
Thus, when the
finally intervenes,
after
no
I
role.
these
it
proposals.
Two
First, the problem of
have
we
for wage
norm
one
tive
series
done
questions in the form of
my
set
society,
within
environment
new
ernment, industry, and labor must
each play a creative and coopera¬
of prices.
a
a
the economy-, but this will require
a
concerted effort in which gov¬
real
infla¬
an
major wage negotiations of recent
years, the government brings with
businessmen which I would define
in
pose
of
ment
full
assure
as
increase
face
policy.
employment and rapid growth with price stability.
equaiiy
creep
agreed
and that
his proposals "for dealing consciously and purposely with our
domestic economy" would widen, not
narrow, the free market process,
replace uneven with even-handed government intervention policy,
financing and
generated investments
in
in
steady
in the
a
Third,
says
million. New equity
increase
guaran¬
tionary
our present practices per¬
vicious circle of inflation which must be broken. The author
expanding manufacturing indus¬
tries in 1958
aggregated $185 mil¬
lion and in 1959 exceeded
$156
beyond
—
average
wages,
reduced into two, inflation and
a
high productivity level is not enough if
our
un¬
precedented growth in population.
Capital investments for new and
bargains
wage
nation's
productivity—which will
reflective diagnosis and series of thought-provok¬
ing proposals are made to rectify them. Professor Rostow avers that
The
ing unabetted parallel
the
tee
The economic problems
Electronics Industry
that prices will rise, and under
heavy competitive pressure among
themselves,
strain
for
extreme
money
By W. W. Rostow,* Professor of Economics, Massachusetts Institute
of Technology, Center for International Studies, Cambridge, Mass.
continuing large
Increasing Importance
Productivity in U. S. A,
ing
13
McDaniel Lewis 8C Co.
A. M. Kidder 8c Co., Inc.
page
46
1
i
14
A
by
Proposal to Prorate
(1) The stabilization of markets
the prevention of production
in
the
of
excess
International Oil Production
Affairs, Jeddah, Saudi Arabia
Middle
East
oil,
United States
based
Commission
Texas Railroad
and
other
over-production.
uncertainty upon which net exporting countries'
for
the
waste—and
Diplomacy, who earned a masters degree at the Univer¬
crisis
the
of
existence
oil
domestic
The
discovery of great petroleum
Middle
the
in
East,
in
period of slightly more than two
a
decades, has made the area one of
major importance in the produc¬
of
tion
vital
this
exception,
without
discoveries,
have
taken
These
resource.
in
place
under¬
developed countries with agrarian
pastoral economies
of the
and
simplest
eted
tries
These
and
better
a
standard
of living. The changes
resulting in the development
are
of
industrial
an
such
forces,
be
cannot
and
economy,
in
set
once
halted
motion,
without
results.
Iraq
When
losses
in
the
governments'
countries which
exporters
stated
able
in
the
in
petroleum.
for
the
these
Briefly
avail¬
countries
following:
is
1959)
Iraq (1958)
-Saudi Arabia
small
stabilizing
serving a
47%
.
(1958-59), 81%
(1959)
60%
,
V
Middle East Dependence
When
these
to
figures
those
of
are
com¬
their
economies
was
a
the
of
It
Middle
basis
first
recognized
was
for
the
destructive
1
development
would
be
view
of
contributing
be
over-production
that
the
the
points
income, it is obvious
stance
economies
of
the
net
exporting countries are substan¬
tially and critically dependent on
one major resource
and industry.
It is
also obvious that price fluc¬
tuations in the market can
easily
price wars,
of
intolerable
experience
small
of
of
the
would
both serious and far reaching.
In
dustry
percentage
or
in
consequence
tively
government
with
which could result in disaster for
the exporting countries. Such a
United
rela¬
developed.
that
competition
"dumping"
a
States,
to.
the
in
the
prevention- of
today
be
to
potent
a
is
It
of
logically
proration,
force
in
price
porting nations'
domestic oil in¬
In other words, imported
dustry.
oil should
into
come
importing
an
then
only at
needed, and
competitive price.
a
For
the
those
who
proration of oil, let
look
at
which
Will
tempts
to
nomic
of
some
international
take
us
the
deter
naive
with
life."
of
We
concept of international pro¬
objectives
follows:
can
be
eco¬
know
ada there exist petroleum reserves
in
measured
trillions
the
rels in the form
bar¬
of
of oil shales. We
know also that methods are
being
developed for the recovery of this
oil, which even today may be
competitive in cost with the pres¬
ent
production;
chat
even
more
are-confident
we
efficient
capital
the
at¬
the
that in the United States and Can¬
national basis. There
behind
brief
a
latent forces
any
tamper
"facts
still doubt
may
the
of
purpose
methods
additional
research. All that is lacking is the
investment
exploit these
will
too,
needed.
to
necessary
and that,
available ; when
resources,
be
Therefore,
it
would
not
of these shares having been sold, this announcement appears as a matter
of record only.
June 28, 1960
not overlook
also
nuclear
abuse
energy
Historically,
have
changed
150,000 Shares
McGowen Glass Fibers
of
Corp.
(A New Jersey Corporation)
economy
they
or
Common Stock
the
various elements to
tained
on
for .possible
also
be
from
The
initial
of
countries
A Bicameral
national
proration
be
imports,
56 Beaver Street
WHitehall 4-7650
New York
4, N. Y.
Teletypes: NY 1-4581-2
Trading Department: WHitehall 4-6627
Such
limited
whose
or
exporting"
committee
or
Such
purpose.
oil
will
on
the
able
inter¬
He
a com¬
formed
former Vice-Chairman of
a
could
two divi¬
Dobbins
Mr.
composed of representatives from
and
of
participating countries;
secondly, an administrative
and
of Secu¬
rities Dealers.
body
a
is
the National Association
for
each of the
was
Texas
and
has
been
business
an
to
method
those
countries.
are
for
This
their
partner in Austin, Hart &
a
ployees.
The first group would
formulate the high-level and op¬
erational
policies,
consider
all
cent
problems of
Austin, Hart & Parvin.
Mr.
business,
a policy nature, and
general direction of the
administrative division. The latter
exercise
group would consist of the
supervisory,
sary
ministrative
nel
for
the
proration
sion
and
execution
agreement.
A
of
protectively to
oil
importance
resources
and social
a
to
of
economic
development, exporting
form
to desire and
economic
unity.
engage in such
economic unity, whatever its
form,
they are establishing a means of
When
Bank
offices in
Commerce
of
of
the
Midwest
Stock
Exchange.
Forms Terrio
carry out the pro¬
the
investment
also previously with
firm, with
new
National
member
the
;
of
relatively re¬
commis¬
gram.
Because
was
a
the
in
Building, San Antonio, will be a
ad¬
person¬
organized should be able
so
their
The
the
neces¬
technical,
clerical
Walcowich,
arrival
the nations
.
Associates
WASHINGTON, D. C. — Thomas
G. Terrio Associates, Inc. has been
formed with
offices in the Tower
Building to engage in
business.
Terrio,
Joseph
and
Mr.
President
a
securities
are
Thomas G.
and
Officers
Treasurer;
Snyder, Vice-President,
Phyllis Borghese, Secretary.;
Terrio
has
been
associated
,
with the Stamford Co.
to
announcement
is neither an
offer to sell nor a solicitation of an of'er
buy any of these shares.- The
offer is made only by the Offering Circular.
150,000 Shares
VICKERS-CROW MINES, INC.
*
(a Delaware corporation)
(Par Value $.01 par Share)
Price: $2.00 per share
The
Company holds 148 mining claims in tue
Provin-e, of Ontario,
Canada, for exploration for
gold/silver and copper.
Copies of the Offering Circular
may be obtained from
more
SAKIER & CO., INC.
SO
work¬
organization by limiting the
participants.
undersigned.
the
re¬
and
the
1951,
formerly Vice-President
National
Corporation,
coun¬
involved,
a
in
since
Parvin.
group composed of permanent em¬
be
in other words to "net
make
number of
business
prin¬
exports exceed
interests
been
invest¬
formerly
a partner of Dewar, Robertson &
Pancoast, and later of Austin, Hart
& Parvin, both of San Antonio.
investment
quirement will limit participation
those countries whose di¬
will also
ment
conceivably consist of
sions; first a policy making group
to only
rect
Austin,
has
the
Common Stock
agreement
would
in
Edward H. Austin
would
logically be the function of
ex-"
on
tries
an
plan
and
again. It
ciple and subsequently
SIMMONS, RUBIN & CO., INC.
who
nec¬
Body
The administration of
reasons
of
execution.
Mr.
necessary
for almost 30 years, was
of course, agreement between the
interested
Bobby L. Wal-
step towards inter¬
proration
W.
and
cowich.
or
of efficiency,
so
as
Austin,
New Issue
for
Co.
Elmer
Dobbins
desirable by conditions
which may develop in the future.
essary
&
have
partners
Pro¬
exceptions made
ef¬
fective July 1.
The new E. H.
main¬
be
status.
current
a
would
change by keeping petroleum in
favorable competitive position
national
investment
securities,
sarily require constant revision of
Organization and Administration
Copies of the Offering Circular may be obtained
from the undersigned.
of
prevent
consideration.
visions
and
retailing
Mr.
with all other forms of energy.
Offering Price $2 Per Share
the
Any such formula would neces¬
This
prora¬
fuels
is in the best interests of the
a
writing
to eliminate or minimize
porting countries to prevent such
a
corporate
Austin
way as
com¬
which
under¬
Let
bppn
either
assuredly do
can
new
a
name,
deterrent
a
the
pne!
onpft'V
his
the potential
as
international
of
tion.
pany,
bearing
will engage in
will
this
/
Texas—Edward
head
demand would be allocated in such
cause
us
will
proration.
in
of
early. stages
of
to
ANTONIO,
Austin
undue loss of revenues during
countries have
supplant the present sources?
SAN
H.
However, the luture increases
a
fact
wasting
impor¬
tremendous
In San Antonio
partic¬
a
would
factor
create
of
NEW ISSUE
This
the
the
a
E. H. Austin Co.
ducing countries when they be¬
come eligible to participate;
(4) A correction factor for the
participants current market posi¬
be the
height of economic folly to
encourage
or
even
force,
through the economic abuse of
of
of
internal
an
within
either
either
proration, the development of re¬
sources
which conceivably could
All
remain
ipating country or in new oil pro¬
any
important is
*
A provision for future dis¬
coveries,
tion.
Inter¬
*
means.
j
the
An address by Mr. T» riki before
the
14th
Annual
Meeting
of
Texas
Inde¬
pendent Producers and Royalty Owners
Association, Tyler, Texas.
good practices by all known
age
of
tance to the world.
control and opera¬
participating country's
a
of
or
is protective
resource
ticipants. The
will
form
a
proration
that it
(2) The encouragement of good
conservation practices by the par¬
of
blocs
more
even
tion would be used.
the
Substitute Competition
or
no
motives
nomic
country. This would
tion
is
national Coffee Convention.
What
makes
international
these factors:
mission
Refers to Potent Force of'
state
are
as
will
the
will be developed with
simply stated,
of
sincere belief
all exported oil should sup¬
plement—not supplant — the im¬
in this in¬
international instead
its
the
my
an
ration, and
mar¬
nations
on
concealed
the
industries
determination
oil
capacity far exceed¬
demand the conditions ex¬
States with its tremendous oil in¬
a
East
productive
form of
of
^qQuntry ^only ; when
exporting countries that the con¬
cept of proration on an inter¬
national
control
that
de¬
from the necessity for
method of stabilizing the
economies
de¬
over-pro-
prevented; it
to; develop
purpose
importing
structure.
to
Objectives
finding
prora¬
unnecessary
petroleum
continue
the
oil
con¬
future
and
the
monopoly because
no
many
■
United
only
the
vital
resource—so
today, for the
the
that
industry—and
an
condition
On Oil Revenue
pared
wonder
be
domestic
represent
cases
velopment.
isted
27%
will
exporting countries of the Middle
East
are
seeking
a
means
of
ing
Iran (est.
Venezuela
the
the major net
percentages,
statistics
indicate
.
of
income
are
some
personnel, who would cer¬
take
into
consideration
fields
proration
unity that has all the
justifications of the European eco¬
conservation matters and encour¬
making
indiscriminate
increases.
Actually
there
price
these
that
tainly
ir-
for
ket
35,000,000
__
the
not
monopolistic
24,000,000
realized
is
and
iduction that is to be
10% of government income,
over
It
portance of petroleum revenues to
unnatural
46,000,000
it
point in
pression of prices due to
$27,000,000
__
Saudi Arabia
-v ■'
consider briefly the im¬
us
__
Kuwait
it
reduction
the
nical
for
an
resource
will, the control of prices. In
my concept of international pro¬
ration, it is the prevention-of the
is
__
natural
competition
economic
tech¬
developed by competent
be
Actually
formula could
difficulties. Such a
matter, but the commission should
act
in an advisory capacity on
/you
prices in February, 1959.
dire
;
in
The conservation of
controversial
losses, roughly were:
'
Let
result
a
Iran
of, life of their peoples. In¬
livelihood
as
in
tion plan will undoubtedly be the
stabilization of the markets, or if
This is illustrated by the
government income sus¬
tained by the Middle East coun¬
of posted
Field
Texas
damaging
development of of utilizing their resources jointly'
an
equitable proration formula effectively and efficiently, and of
economic practice
should not present any particular standardizing
It is quite natural that the most
,
-
losses in
and whether it is pleasing
or
displeasing to them, is chang¬
ing the basic economies and the
their
balance be¬
and
budg¬
resulting
in
the general
expenditures,
East
:the benefit of the particular coun¬
tries and for future generations.
economy.
industry for better or
evitably, and to an ever increas¬
ing
extent
they
are
becoming
dependent upon the petroleum in¬
dustry and its subsidiaries for
income
is
'
(3)
serious disruptions in
worse,
way
their
tween
The impact of the
type.
petroleum
delicate
the
upset
the
jreplacable
supplement—not sup¬
plant—the importing nations' domestic oil industry."
reserves
in
1931.
supply in many importing nations, It
is Mr. Tariki's belief that "exported oil should
of
form
surely waste—
by the Texas
Commission during the
Railroad
posal limits itself to prevent price cuts and not to causing price
increases and because of the realities of substitute competition and
•
this
established
•was
.
it
precedent
The
of
control
sity of Texas, states no monopoly, would be created since the pro-
r':,'
avoiding
agreement in principle has
Once
Thursday, June 30, 1960
been reached, the
ic waste" caused
governments and economies are said to depend. The elder statesman
of Arab Oil
. . .
(1) The proven reserves of each
be the basic
by the unnatural factor in any formula, and uni¬
depression of prices resulting from form methods of reserve estima¬
Tariki regarding his proposal to prorate
experience. The aim is to prevent over-production and
oil-revenue
remove
on
stabiliz¬
a
ing influence on the economies of
the exporting countries by pro¬
viding a definite and predictable
income
for
their
governments,
which will provide a basis for the
sound budgeting of expenditures.
(2) The prevention of "econom¬
By Abdulla H. Tariki,* Director General of Petroleum & Mineral
A sounding is taken by Mr.
demand.
market
,This will in turn exert
Chronicle
and Financial
The Commercial
(2814)
Ma, 27, i960
Bread
Street,
New
York
4,
WHitehall 4-3260
New
York
Volume 191
Number 5964
.
.
The Commercial and Financial Chronicle
.
(2815)
that demand
ous
for
line would increase
Take
And the Demand Outlook
for
A
are
States but
also, at
even a
healthy
pace not
or
and
of
of
international
commodities.
It
comprises in value about 5% of all
international
that of
the
tonnage
all
items/ In
equals
other
double
—
closest
it alone
of
nage
exchange
next
the
items
in
ton-
inter-
gas
tions
coal
over
will
the
in
persist.
cost
some
loca-
many
S. that
the U. K. there
71 million
delaying
the
widespread use of nuclear energy,
All these factors point to petroleum
supplying about two-thirds
of incremental energy demand in
of
agriculture and
industry exist in most nations.
avera§e
Reassessments
keep
U.
kerosene space heater.
a
Europe and
mechanization
There is no more appropriate subject than petroleum in a discussion
the
portunity for oil to expand. Other
opportunities
such
as; for
the
only in the United
pronounced pace, in the free world.
more
us
dwelling units
of which only 8 million, or 11%,
have central heating systems. And
of these only 3 million, or 4%, are
heated by oil. Here is a great op¬
for the present state of excess
capac¬
outlook for demand to grow at a
in
have
annual
capita
per
c9nsum^on ?*' aE the Free For-
f*g*? ^tmns is only a fraction of,
a of *
* S*
1,6 barrf1s Per
f ers<?9, per. y??r',
?
!l?re; Eve£ in
,
could
U
still only 2%
°.
y
of U
/°
sufficient
this
for
i
mu
cals.
u
vast
oil is
cJua9 011
as
of
of
petroleum
conceivably
enerev
nil
•;
•
onri
nf
nniv
Oil and gas, of
courseware
two ot several sources of energy.
troo
nnnrco
oro
Ir P?J,
s
erowth
in
period to
potential
evaluating
in
.
petroleum demand
first
must
we
petroleum's
petroleums
competitive
competitive
position
position.
defined
has
struggle for the
with which to do work."
for
to
energy
burdens
has
World's
lighten
increased
cessantly. In the last 10
Free
been
"the
energy
The need
man's
existence
for
as
total
in-
the
years,
energy
con-
sumption has increased 50%. This
it will reach
year
million
45
approximately
barrels
day of oil
per
equivalent.
Over
next
decade
Free
demand
energy
to
at
grow
an
expressed
increase,
equivalent, will
oil
as
to
an
of
growth
Actually,
well
be
this
the
barrels
side
a
in
World's
the
Free
average
consumption.
it
per
in Asia
and Africa it is only onetwenty-fifth. This disparity gives
an idea
of the potential which is
available. If economic activity and
standards of living in these forareas
modest
the
impact
will
mand
improved
are
the
degree
total
on
be
beyond
here,
assumed
de-
energy
\
the
who live
growth
ug
first
apt to
in
congested
areas
that motor fuel
assume
consumption has reached its peak.
This is not true. First of all about"
one-quarter of the families of this
nation do not own a car. In addi-
tion,
population is growing at
1.5-2% per year which will
our
about
millions
mean
Also,
we
nation
than
of
motorists,
new
rapidly becoming a
families having more
are
of
one
Today,
car.
17%
of
all
owning families have two
car
to
compared
cars,
tip-
question
petroleum
of
importance
industry
Although
demand
heating oil is
due
to
the
now
or
in
7%
natural
demand
for
use
jet
fuels
.
is
to
just
how much of this energy demand
is
nf nil
the
If the
free
1
5 billion
diesel
increasing
qualities of
transportation
conven-
and
as we
their
do
m
consumption
PGr
dav—substantially
the entire world
men{
,n
pronounced
more
f
to
such
■
-
,
as
f°relgn
tivity
and
sources
combined
energy market from 43%
to 56%.
will
course,
source
tion
a
to
of
for
source
the
future,
remain
energy
the
for
of
energy
oil,
of
primary
transporta-
rhany years to
come.
As
for stationary
installations, the advantages of oil
borhood
with
consumption last
year.
Supply
Now looking to the supply side.
there certainly is no need to fear
^ wg wm
Qut Qf petroleum
fyn
for
many,
many
to
years
of
inventory amounting to 40 years'
supply at current production leve\s
During the post-war period
the Free World has consistently
added
more
to reserves each year
than it has withdrawn by produc-
tion, so that the "supply ratio" has
been
successively improved.
In
i94g) for example," we had only a
21-y'ear
on
supply and this was based
a
production level only 50%
great as today's. -
neigh¬
barrels,
that
amount
26%
1959
In
some
abroad.
aid
some
350
.
tankers
raise
the
These figures may be mislead¬
ing, however, and I believe it is
necessary
at
each
to look
in
one
thoroughly
more
order
to
picture. Thelpace with which
we
have recently developed our
producibility is certainly not
without
purpose.
For
one
producibility is
things serve to make our quite different from expansion of
reserve position
even better. For
refining or transportation capac¬
one
thing, these estimates of re¬ ity. We can design and build
coverable oil
based
are
on
ex¬
an
pectation of being able to recover
only 25 to 30% of the oil in a
given pool.
The industry is cur¬
developing new methods
which will improve this rate sub¬
stantially.
.■'.',v'-:
rently
i
Secondly, there
sedimentary
in
the
able
in
Free
Also,
staggering
in
World
there
amounts
the
which
we
estimate
discover
we
sufficient
meet
needs.
four
of
our
In
Anyone
who
to the
to
trouble
see
lots
years
avail¬
more
sancts*
have
successful than
required.
high costs of recovery and
essing.
However, work is
proc¬
producibility than actually
Equally important, it is
imperative that the Free World
cur¬
have proved reserves located stra¬
sources
rently going on to develop more
economic
techniques
and
these
supplies might be an economic
reality before the decade is past.
more
tegically
and in volumes which
consistent with military and
are
"emergency"
existence of
the
Explains the State
of
Excess
Now
I
am
In
certain
awarei-. of
mre
the
that
many
talk
going
'on today to the effect that the oil
industry is in a serious state of
excess capacity. To be
sure, cur¬
rently there is more capacity than
is actually required for flexible
operations. The industry entered
the post-war period with virtually
no
spare
in
capacity
price
necessary
Capacity
any
of
its
are
requirements.
some
we
the
must
pay
which
adjoin
Some
believing
own
drive
automobile
that
those
to
their
now
for
ordinary
modern
jobs.
one
which permits
operation of vessels three to
as large
as the 16,000-
proved technology
the
five times
ton T-2. Since the cost
savings are
forced
to
larger ships even
though present ships have many
years of useful life. By construct¬
ing these new super-tankers we
large,
operators
are
build these new,
three principal functions. This was
are
lowering cost, thus enhancing
certainly
the
competitive position with
for
an
an
undesirable
industry such
position
as ours.
Continued
Con¬
Price $21.25 Per Share
every
In
the
three
per-
whereas in Western Europe
Shoul|d
Europe
announcement
to
attain
Smith, Barney & Co.
City Securities Corporation
Incorporated
Blyth & Co., Inc.
Goldman, Sachs & Co.
Eastman
Dillon, Union Securities & Co.
Hornblower & Weeks
cars
passenger
there is* only "one for each 18
sons.
who
Kidder, Peabody & Co.
Dean Witter & Co.
Paine, Webber, Jackson & Curtis
A. G. Becker & Co.
Incorporated
per-
oub
automobile saturation, it is;obvi-
June 29, I960
this
transportation, idle tankers
primarily the /result of im¬
constitutes neither an offer to sell nor a solicitation
buy these securities. The offering is made only by the Pro¬
spectus, copies of which may be obtained in any State from such of
the undersigned as may lawfully offer these securities in such Stale.
our
for
flexibility.
usually
tremendous
The
shut-in wells is
visitors
are
factories.
U. S. there is
sons,
States
here for the first time have
workers
and
European
United
to
few
these operations have been
normally ex¬
pected so that we have added
further
of
abroad
travels
past
remained untapped because of the
i
offer
In
need.
reserves
the
No Par Value
an
exactly,
close to, the level
producing, however, it is not that
simple. The success of exploration
and development ventures is er¬
ratic and unpredictable. Thus, we
must each year carry on enough
exploration programs so that with
probable success ratios we will
tar
Canadian
refineries
or
at least very
oil
are
of
To date both of these
or
proved
alone—almost
times current
reserves.
one
oil available
deposits of oil shale
S.
U.
roughly
are
trillion barrels of
tankers
(Stated Value—$3 Per Share)
of
thing,
expansion of
Common Stock
This
the
see
true
Hamilton Gosco,Inc.
energy,
up,
fleet.
ac-
standard
tied
were
representing 13% of the available
300,000 Shares
are-
Free
producing capacity was
in; refineries ran at 83% of
capacity;
and
in
transportation
Many
programs,
over¬
of
World
markets
common
are
shut
the
come.
;
times
we
built.
the
increas¬
ever
ing demand. Today
Two
Estimates of proved reserves
in the
Free World today exceed 260 bilHon! barrels,
This /represents an
billion
400
several
abroad.
for
in particular, petroleum
parking
world's
Looking
than
reserves run in the
an
living. This requires energy and,
enhance
the
of
maining
re¬
of
and
working to stimulate economic
come
their
whereas estimates of ultimate
requirements
.
American
share
of supply. In the U.
S., for
example, proved reserves are cur¬
rently carried at 38 billion barrels,
improvepetroleum demand is even
decade
increased
more
re¬
yet discovered—are the basic
have experienced
we
opportunity
competitive position. In the
have
would
am0unt to about 20.000,000 barrels
Ultimate
years.
source
the past
The
past
percentage
not
working from a very
high base, the percentage rate will
amazed
two
oil
the United
40
serves—those believed to exist but
was
are
their
these
much
as
in
in
serves
through 1956 the industry
barely able to keep up with
expect the U. S. de-
we
be less than
of
ease
which
means
and
rapidly.
transportation.
economy,
neoole
one-iourtn as mucn oil
a healthy pace
—resulting in an increase of about
270,000 barrels per day each year,
we
today's conditions of price
are by no
the limit of our supply, and
ex¬
n
competition,
products
and gas have inherent
ience,
free
appre!
Hemisphere
nne-fnurth
even
per person
states,
Eastern
quickly notices the need for better
cleanliness,
the
of
to an
mand to continue at
Since
recoverable
technology. They
Visualizes Increasing Consumption
Here and Abroad
Overall,
be
rapid
undertake
home
will be supplied by petroleum. Oil
efficiency,
under
to
a program or
was
similar
automotive
as
known
by actual drilling
sequently,
pansion
growing slowly
gas
for
for
Hemisphere
,
n/s of oil. it me i.d oimon people
0f
1950.
anc*
tremendous.
Outlook for Growth of Petroleum
The
percentage
7* ir*reasfg baf"
per
Cur-
capita energy consumption in all Free Foreign nations is
only one-tenth of that in the U. S.;
eign
and
may
since
slight improvement
energy
rently
per
estimate
low
implies only
capita
annual
average
1,700,000
day.
on
the
Are. these forecasts of growth
is
average
rate of 3% per year. This
amount
the
per day of oil, and
optimistic? Not at alL Let
are
ronsumntion
the
in
.
cttble fraction of the U. S. level
would require staggering quanti-
as
total
expected
in
tar
rates will be somewhat abated be-
more
the
World
far
tnus
2 billion cubic feet per
day of gas.
Naturally
of
Energy has been aptly described
"the
go
of things" and the
struggle
thus
experienced
consider the United States. Many
us
Outlook for Energy
as
this
nver
Post-war period. This will amount
ino^^9.!111119! lncrease
nearly,
en^fy V<!SrePments 3L "a!
0ji
about the samer„«Gri
average
exoerienced
a
\^ iorJ
combined oil and
demand
gJ°,wm in aemana over tnis
•
only 800,000 barrels
Thus.
y' 7!
the Free World
gas
from :;ta
increase
per da* Eastern
?? 5
of
source
a
of
chemi-
oi cnemi
*
11
bulk
outlet
an
crude
production
auantitv
+
The
finds
S
the
immense
covered to date
jyghly developed
coming decade, thus raising its )^es^rn ElJ^0Pe
consumption,
national " trade.
Petroleum
has market
position to nearly 60% ls
y
barrels per person per
enjoyed a spectacular growth. It (16% supplied by natural
gas and ye3uhas become a most important raw 44%
by oil).
'
This means that a tremendous
material source for the production
For tlie entirG Free World
P°te"tlal mar^e!; . for petroleum
oi soecialities ana a nost oi cnemi
of specialities and a host of chemivf
entire rree world gas exists abroad. Raising the per cap-
nSw al^n ™toTo% of ali 36 j°
SS chemTcal productil,0 and *2?
these
words, they are a conservative es¬
timate of the volume of oil dis¬
the
nage
that
only; in other
it should not be inferred that the
Free World will exhaust its re¬
In
unquestionably lies ahead for the
appraisal of the prospects for oil takes
reasons
of
noted
stove
ity, the replacement of tankers with larger, less costly ships, and the
competitive entry of Soviet oil. Mr. Coleman presents an optimistic
*
need
of it in northern Europe.
Central heating system is so
more
be
reserves
and
to believe that
prosperous growth
into consideration the
central
should
proved
are
forgotten the in¬
convenience of a pot-bellied coal
recapitulation of the supply and demand situation confront¬
ing the petroleum industry, now and in the future, leads Mr. Coleman
His
of
It
gaso¬
heating for homes and the
most
swift
industry in the 1960s.
example
commonplace
By Stewart P. Coleman,* Vice-President, Standard Oil Co.
(N. J.)
A
the
motor
tremendously.
15
on
page
re-
31
16
(2816)
hoped
By Roger W. Babson
today's research-development projects to harness hydro¬
for peaceful uses; to synthesize food directly from sun, air and
are
machines;
to
develop
"thinking"
electronic
this
It
will
is
be
fall
subsequent
now
.
.
panic, (2) further advance based
uP°n solid business
improvement
and (3) a culminating frenetic ad-
accom¬
railroad shares
min¬ and railroad bonds. In a few weeks
discovery could well many lost half or more of their
result in "perpetual motion" for price. In the middle 1940s departsmall irrigation pumps and other ment store issues and air transindustrial uses without consump¬ port issues were bid up to high
tion of oil or electricity.
I am levels from which they tumbled,
of
Such
existing
some
such
the
discovery In
a
bear
some
day be announced by stocks were the market favorites
Gravity Research Foundation and they never recovered from
of New Boston, N. H.
their declines. Later, in 1955, it
was
uranium
stocks.
Many
of
the
the
covering
adequately
developments such
papers
space
are
circling the moon, etc., I would
as
like
to
tell
you
down
come
to
earth
and
of some very wonderful
things which are now under de¬
velopment.
From
my
point of
view, any one of these may be
more
i m p o r t a nt
than sailing
the
around
solar
system.
experiments.
By rearrangements
of molecules,
strips of metal an
eighth of an inch wide and a few
thousandths of an inch thick pre¬
sent
potential.
Since the days of Sir Isaac New¬
ton, physicists have been seeking
partial insulator of gravity.
a
for
some
tried
acquainted
are
industrial
Our
metallurgists have been watching
Control of Fusion
Readers
great
alloy
(millions
of
possible alloys exist)
un¬
to act
these no longer exist.
The sequel to the mad rush to
permitted, I would like
discuss the new developments buy the fads of the moment at
in analytical and computing ma¬
high prices in every case was a
If space
tured
These
at
are
manufac¬
now
great cost; but
they will be
machines.
as
None
of
and decline that came out of
dustries, were exaggerated. It's
blue, without warning. There this
disillusionment
that
has
adding are, of course, exceptions to every caused the many declines in
steel
are
as
rule, but the risks presented by stocks, motor shares, metal stocks
only
can
and capital goods stocks
generally,
Now if we read our
previously fed into them. With the
risks
barometers
rearrangement of molecules, some
true of the current market.
day
have
we may
a
machine which
"thinks."
only
ton.
one
the
Yet the
drogen bombs
force
hy¬
thou¬
newer
have
may
of
a
sand times the power of the atomic
bomb.
These
important things
are
to consider in connection with the
already been harnessed for the
development of electricity; but no
practical method has been found
for
harnessing hydrogen energy
for
peace
that
found
in
energy
pond
every
of
water,
be se¬
while
atomic energy can
cured only from uranium and sim¬
ilar substances, the industrial funture is locked up in the discovery
of
of
means
Cloudy 1960 Market Picture
—Clearer Sailing in Decade
Continued from
1
page
nological glamour stocks, the office
drogen
duced by fusion.
be
a
which
radiation
emits
I be¬
persist,
least for
of
the
built
at
further period, in view
a
large productive capacity
in the U. S. as well as
up
third
Market
Price
of
$1
Divi¬
of
best
that
kills
people but does not destroy prop¬
erty.
One of the world's greatest mir¬
acles is how sunshine,
air, water,
and the minerals of the earth
can
of sentiment.1
measure
figure
down from
came
This
high of
a
$34.24 last year to a recent low of
$28.25.
We expect it to decline
further, somewhere between $25
and $20, so that the stock market
should
tween
again
4%
dividend
reflect
to
5%.
rate
yield
a
If
the
the
on
be¬
current
DJIA
of
directly develop corn, wheat,1,po¬
around $21 holds, this would sug¬
tatoes, spinach, and every other
gest a stock price average in the
kind of vegetable.
Today, we raise
range bounded by 525 and 420 or
foods only by planting
seeds, cul¬ well
below the current 645 level.
tivating the sprouts, and waiting
several weeks
then
we
eat
for
only
maturity.
Surely
be
day
some
solved
the
secret
will
whereby this sunshine,
air, water, and minerals will make
food
directly without the waste of
farm
land, human energy, and
vegetable residue. This process is
technically known
synthesis.
as
Last year as we
Even
small portion
a
of the properties which have been
used to develop a kernel of corn.
develop
tighten,
as
—
we
these trends
saw
money
sentiment
will be
coming when there
telephone wires on our
no
streets.
Communications
by microwaves.
tories
are
to
waves
cations.
flashed
power
of
of
however,
be
a
wires
not
certain
electric
will
know.
that
new
be
de¬
I
am,
there
will
most
radical change in all
communications, includ¬
radio, television, and other
means
ing
transporting
do
I
not
or
of
discoveries yet to come. Even
now,
antennae and vacuum tubes are
no
longer
unseen
to
necessary
electric
waves
walls of any home
Rearranging
or
the
transmit
through the
factory.
Molecules
I am tremendously interested in
the work of Dr. S. W. Herwald of
the Research Department of West¬
ing house Electric
rearrangement
of
Corp. By the
molecules, cer¬
do the work of
tain minerals may
other minerals and
almost
boron;
other
new
combine
into
elements
are
Gallium,
arsenic, and
used
in
these
These
face
The
age
of
have
a
9%
in
in
Aver¬
the
first
1960, but ten such
stocks advanced
recent
up
market.
Industrial
down
five months of
At
moved
declining
Dow-Jones
came
no
prices
account. These
are
from
British
our
ents
many
the
friends
preservation
second
one
is
to
of
and
what
with
reason-
less than 19%. able assurance of capital preservation. The third is to obtain what
stocks
sold
an
(May 31), these
56.2
average
times
their last reported 12-month
light
We
annual sales.
Next
consider
preservation
of
capital paramount because all in¬
the
cut back
we
risks in the
managed and serviced by
built
up
form
of
buying
cash
ahead, but
riod of
date, simply because
50%.
to
changed
declined
can
,11%
in the
be devoid of risk. U. S. Treas-
period January through May. At ury 21/2s,,of 1972-'67, for instance,
sold as high as 109 in
recent prices,
early 1946,
they sold 14.4 times
but in early 1960 sold at 79.
There
their latest 12-month
earnings and
was a
decline of 30 points in 14
the ratio of total
capitalization to
years. This represented a loss of
sales was 1.1.
2.15 points per year—almost
equal
Last, and this comprises a large to the
yield on these bonds at the
number of the individual issues
high, of 2.29%.
listed
the New York Stock Ex¬
on
A
study by the National Bureau
change, are the stocks represent¬ of
Economic Research
ing apparently static, lack-luster,
ago
negative
growth
-
companies
that
showed
bonds
that
issued
of
quite ignored and neglected
1943, at least
by institutional investors and sub¬
fault. The
20%
actual
jected
to
erosion
of
interest
and
bonds
after
some
all
years
corporate
between
are
12-month
and
the
ratio
talization to sales
So, when
comment
one
or
of
earn¬
their
capi¬
0.7.
was
asks for
a
1900
pect
such as to prove a further depressant to the level of stock
prices.
The
big question is whether we
through the third step of
despair, which is, of course, the re¬
must
go
of the enthusiasm and
verse
suffered
yield
in
opinion
A
But
be
today
was
that
of
as
the
the
it
history
may,
popular
moment
based upon
earnings consid-
erS!'1?,1+S aZ*t an lrr?P°rtard; deterT
us, in
a
glamour
in
income
10n
capital
stocks,
°f
Ppces
sense,
he
Sign of Danger
that
turn
overlaps
aS
aS
grow ill.
Growth
the moment,
I
is
hands of
our
and
more confusion and
counter-trends than the market of
recent
months.
In
the
past,
we
have had bull markets that fed
once
perch,
they
they
fall
take
the
market with them. There is noth¬
ing new about growth stocks;
have always been with
Back
on
they
us.
who
1929, the public utility
optimism and moved up, and bear stocks were the
growth darlings
markets
that fed
on
pessimism of the day. They commanded fan¬
and moved
down, but this is the tastic multiples of
earnings and
first
time that I have
seen
a
ophrenic market feeding
wilderment and confusion.
Actually,
ket,
not
markets.
market
have not
we
two
markets,
Not only
with
do
be¬
one
mar¬
three
have
a
Doctor
Jekyll and
but also one
First, the strongest,
most prominent, and
actively
Hyde
in
personalities,
between.
traded stocks have been the tech1 This
charted
is
in
GRAPH.
fully described
and
WIESENBERGER SENTI-
more
the
dividends
Vi
of
and
1%.
returned
But
were
but
we
schiz¬
on
lost
in
made
in
the
far
less
more
than
billions
the
subsequent de¬
cline in the utility list than were
Even
at
utility
previous
recent
average
advance.
highs, the public
(Dow-Jones) had
recovered
to only 65% of its 1929
high while the market in general
has nearly doubled in value.
In
1933, with the imminent
peal of
our
stocks
were
use
that
to
prevent what
otherwise
be
a
serious
might
slump
in
stock
business
activity
and
prices,
Long-Range Outlook Favorable
As a matter of
fact, I am in¬
clined, in retrospect, to doubt that
the great 1958-1959 rise
stock
prices constituted
we saw
in
the
typicaj} inflationary, third-rphase culminating step of the long bull
iies
ahead
the
our
,
inhabited
since
awaiting
elimination,
reduction,
many stresses and strains
correction,
0f
have
we
Rather, do I think that still
at
or
economy
least
has developed over
vpflrQ
"
.
1 do
.L-
,
.u
•
c
„
.
Rpnnnc*
rtf
Industrial Average of above 1000
wed within the realm of probabil-
u
,
have re* ity, but I am inclined to think that
markpfn"aVe^age if the stock market projectile is to
snhstanTi^ r' W<~i
reach that stratosphere, it must
risks in the stork
built
un
because
serves
nro^ re"
of
we have
portion
our
of
first
placed aMr
funds
in
measure
of
capital appreciation
achieved in any
be
may
market, providing
one's
selections
markets such
are
those of recent
good
the
as
but
present
in
and
months, the bull's
rJieatinnTeSl>yery^m,aU.indeed
Whole
relation
to
tne
target. To
qualify for capital growth a
security today should, we
believe
be
a
very special
Three
situation.
Just
sfprx?
kct »
to
wb.
a
launching
*
Tlmm§
'
.
.
.
q1
events is always dlfficult> but in view of the
]et speed with which this market
1S Proc.eeding, it could be that this
take-off might be arranged within a yeareconomic
add™. by
a
Mr. WieSenberSer a.
tendered by Sir Denys Lowat Estate House, London, E.C.2.,
luncheon
son'
England' June 7»
196°-
Now Skousen Financial
Steps
there
nnurard^
as
down to
'
Up
and
MONTROSE,
Three Steps Down
/
come
tektagtff "g ar°Und ^ ^
g
liberal-
yielding securities. Some
re¬
prohiibtion laws, liq¬
bid up to fantas¬
tically high levels from which the
uor
5,
from now?
siderations,
in
the
Federal Government
enough disposition to
rpppnf
eafded L *
because
their
of the
believe
in
think the Soaring 60s
stillborn. I still oelieve a
52( today !?, J;lant financial period for trie
can say what it
may be
/ S' a"d ,tbe^orld at large lies
let alone 10 or 15 years
? ? :
think a Dow-Jones
recollection and long association
with Wall Street—has shown more
vestors,
are
ammunition
tant but essential. The
dollar of 20
years ago is worth
only
worth
from
we
era
and
ammunition
capital in an inflationary period is not only impor-
and
this is the
State
enough
of
a
high
Probably no market in history— and risky market deserve close
certainly no market within my scrutiny and attention by all in¬
cross-currents,
over-
bear market. Although there
a
Welfare
de¬
these
on
I doubt it. I do not believe
and
deducting losses
®
market
should specify what portion of the
market he has in mind.
stocks
.
pe-
is little in the economic,
financial,
political and international situations about which to enthuse at
stocks
shows
-
a
such
yet see the basis for thinking the
situation will soon reverse.
Three Markets
average, over
optimism shown at peaks.
Frankly,
come
do not
we
on
some
typical, mature,
vestment involves risk. No invest¬
good-quality, well-known, stand¬
ard-type of issue. A group of 10 ment, no matter how high grade,
in
or
securities, of 35%
This policy we have not
to
firm.
our
reserves,
firming of the
months, I would exthe business news might be
i942.
equivalents
some
stock price structure in the weeks
market
showed less and less in the
way of
potential gains and more and more
in the way of potential
though they
the
The-may witness
income
as
go lower,
Stock markets seldom decline in
summer months so
that we
cli—
capital.
obtain
consistent
can,
mid-1958 and look
could
learned
we
ago. The first is
years
worse
turers have declined for five
months in a row. Commodity
prices have tended to decline since
the basic rudi-
investing
something
far in 1960 have been 21%
behind
1959. Unfilled orders of manufac-
affecting the
three separate
keep constantly
in mind regarding an investment
of
can-
expected. Steel production
already
declined
for
six
straight weeks and in 11 out of the
last 12 weeks. Housing starts
thus
we
are
of
has
three markets
are
variables
market, there
objectives that
electronic ments
and
there
as
three
soon
disappointment,
than
ings
profits
minerals.
phosphorus,
issues.
the
camera
decline
Three Investment Aims
and
may
hopes, but
realization
accounts
our
as
corporate
already applying these
without
veloped,
be
equipment,
percentage
we
which would involve not
only
cellations of previous
price by the investing public gen¬
less than half the yield based
on
erally.
A
representative
10
of
offering price.
these stocks also came down
by
Income is important, not
only
11% in the first five months of
because of the actual
return, but
1960.
They recently sold at 9.8 because income
considerations, in
times their latest
danger signals, and
projections
long-distance, communi¬
Whether
methods
will
The Bell Labora¬
move
past had
senior
The time is
the
aright,
period of
a
declines,
to levels that in the
up
the
Communication
saw
as we saw
We
Methods of
sells
market
by the averages.
Just
consider
the
may
bomb
the
as
growth of capital one can, in the
of the first two objectives.
capacity seems ample to satisfy
earn¬
all potential near-term demands.
ings.
Their
total
capitalization And, of course, the last becomes
Financial sentiment has sobered''commanded a dollar figure equal increasingly important in a period
of long-range inflation.
to 4.6 times their latest
over recent months.
reported
We
pro¬
commonly
There also
theoretically
energy,
in 1950 to under 5% in 1959.
lieve this trend will
dends—that is the stock price level
divided by the dividend rate—the
safely harnessing hy¬
and
business
enter
off, these avidly sought glamour
probably suffer several
times
abroad in virtually every industry,
Considering
may be field, commodity and service. This
purposes.
hydrogen
When
shown
possibility of World War III. But manufacturing corporations in the
in looking to the future, there is U. S. came down from above 7%
this difference: Atomic energy has
are
stocks will
the
had
should properly be
only when general
not high and that is not
undertaken
re¬
references to the atomic bomb and
"blockbusters"
stocks
such
arrange and report on information
with
hydrogen bomb. The atomic
bomb dropped on Hiroshima had
the explosive force of over 20,000
tons
of
TNT, whereas
the
old
decline
the
as
these
yet able to think, but
market
fall
day
some
common
or
starting out as the Sagging Sixties
Expectations regarding steel,
autos
and building, to mention a few in-
to
chines.
a
market
Late last year, optimism was rampant and articulate, but the Soaring Sixties to date appear to be
Machines Which Think
While
exaggerated
These may be described as:
(l)
disillusionment,
(2)
disappointment and (3) despair,
Recently we have been
going
through a period of disillusion,
will
machines.
upon
hopes for the future, there
typically are three steps down in
aircraft
the
'50s,
early
based
vance
a
that
Thursday, June 30, 1960
.
and
great
was
sharp.
In 1937, it was
rearrangement of the
a
molecules
eral.
confident
water; to communicate by microwaves; to rearrange molecules which
among other things may mean creation of anti-gravity perpetual
motion
insulator.
an
that
plished by
Just Around the Corner
gen
such
as
Great New Inventions
Surveyed
Chronicle
The Commercial and Financial
name
are
usually three
Til "131™
(1)
recovery
mar"
from
Calif.
—
The
firm
of Skousen Investment Serv-
ice, Inc., 2339V2 Honolulu Avenue,
has been changed to Skousen Financial
Management Service, Inc.
Volume 191
Number 5964
THE' MARKET
.
.
The Commercial and Financial Chronicle
.
BY WALLACE
With
with
up
Auto
comes
that the consoli¬ about, particularly since the
new
model years have been
phase following the
spirited rally of early June pushed ahead by around a
is
ahead,
Beckman and General Instru¬
the
electronic
Canteen
and
in
the
vending sections.
*
*
❖
A
month
downhill
drift
for
has
or
so.
these
The
shutdown
changeovers
will
candidate for better
new
action
in
the
office
machine
group was Smith-Corona after
it unveiled a photocopy ma¬
add an additional note of un¬ chine
which gives • it entry
wiped out half of the
certainty until it is more clear into a new field. International
ground covered in the rally
how the new versions are ac¬ Business Machines, which had
from late April to early June,
The carried the ball'for so long
which still leaves it within the cepted by the public.
as the solo star of the
section,
bounds of a normal correction. early showings, however, will
mean that the
heavy new or¬ was given to restrained action
There was, consequently, lit¬
ders for steel will be speeded for a change.
tle dismay over the perform¬
up, too, to give the general
ance.
Then, too, the bulk of
Snagged Merger Flurries
the summer is still ahead and economy a good push for the
about
there is
of
the
plenty of time for one
stronger seasonal ral¬
lies to assert itself
5
*
tions
for
fact
are
steel
that
opera¬
about down to
a
low
couple of years was not
exactly a surprise since just
a
that
action
dicted
for
it
taken
was
lighten
once
ing effect
as
an
market.
;
sj:
to
stepped
counted
commitments
*
•
•
some
upsets in
some
-
a
rather
up
of
future
the
offer
counter
from
another
growth and obvi¬ food company.
ously would call for reap¬
Standard had seemed
the rest of the
praisal if general business is sure road to taking
*
*
merely going to hold steady. Planters but at the last
1
■
But
excuse
which had
on
pre¬
summer.
steel
more
been
had
the
*
were
busy merger flurry,
highway notably Beaunit Mills when
program
was
shrugged off its talks with Hercules Pow¬
It
was
off
pretty much by the market, der broke off.
which concentrated more on nearly a fifth in value on the
the overall economy and on news.
Standard Brands was
the
fact that it is holding far more restrained when its
level at a high plane when negotiations
to take over
constant expansion is the de¬ Planters Nut & Chocolate, al¬
sired aim. Many areas of the ready in something of a snag,
market have already dis¬ bumped
into a mysterious
The
once more.
Steel Let-Down Heeded
The
There
fall.
a
W.Cf
industrial
chill¬
'
.
'
versified
but its record is not
quite
bad
as
action
in
the
as
the
market
generally
on
a
over
min¬
•
weren't
pressed
paper
group
with
about a fifth some price increases that will
coming from tim¬ bolster the profit showing this
Its peak profit was
ing devices and deep pile year.
fabrics, the latter the newer scored in 1956 and indications
employing
a new
costs and has made it
a source
of
a
ent
de¬
state of
profit to the
spite
the
that this could be
are
production method that shaves in
depressed
the textile business
generally.
eclipsed
if the pres¬
year or two
uptrend holds.
company
Values in Cements
Cement
shares
shunned for
have
been
couple of years
Expected Pick-up in Papers just like the paper stocks,
Like the textiles, the paper starting with a slowdown in
business has been plagued by the Federal highway program.
overproduction and price com¬ But now that moves have
petition with some signs that been made to step up the pro¬
the worst may be over. Crown gram, the cement shares have
Zellerbach, for
increased
that
and
the
a
reported shown little inclination to hail
one,
the action. Lehigh Portland,
had third largest of the independ¬
90% of ent producers, has been avail¬
for
demand
paper
industry
worked back to
some
capacity.
For Crown itself, able at less than 10-times
its product lines are all close earnings and with an indi¬
to capacity yet the stock is cated yield running well into
still
available
at
15
some
the 4%
bracket.
This also is
stock
a
selling at half of its
*
*
*
1956 peak with a good earn¬
Oxford Paper is also be¬ ings outlook to cover its divi¬
lieved in some quarters to dend requirement more than
points under last year's high.
have made
a
eral
of
turn
after
sev¬
unsatisfactory
results. Oxford's specialty is
high-grade printing papers,
and its customers are all long
years
associated with the company.
It was able to boost prices last
ute several trusts that hold
overly soft
Offsetting Gains by Utilities the stock had blocked
delivery year when demand increased
narrowly with the
This nervousness over the of the shares
to Standard. The and post even higher sched¬
spotlight dwelling on Balti¬
fall business picture was case
ules early this year.
Mean¬
was headed for a court
more
& Ohio for the most.
translated into a sturdy determination when the new while, some start-up expenses
B&O is the central figure in
that were a drag on earnings
utility section which, despite note of uncertainty arose.
a
tug of war between Chesa¬
some
hesitation early this
are over/ Its profits showing
peake & Ohio and New York
Standard, on its own, is a
in this year's first quarter
Central. The original offer of week, was still toying with its
quality investment with good
1960 high which was set in
was the best since 1957 when
a share of C&O for each l3/4
defensive qualities and a re¬
last week's final session. As
its troubles began. At its low
shares of B&O was about in
turn of slightly above
average
the defensive section the fact
line with1 the market prices
at around 3Vz%. Unlike some this year it was at about half
that it is the only average in
at this week's standings, while
of the high-flying items in the peak price posted in 1956
ground for 1960, and the
Central's bid of IV2 Central plus
list, it has been a mun¬ when it posted its record
nudging higher, is eminently dane item since the shares
shares plus $9 cash for each
earnings.
were
i
*
*
*
split last year and in
B&O share was well over the
that time has only wandered
West Virginia Pulp is an¬
The
competing bid. On the surface
highly - favored elec¬ over a
range of around 15 other
well
depressed item,
the odds seemed to favor Cen¬ tronic and vending machine
points.
down nearly a third in price
Neglected Electronics Items
Rails
this year,
of its sales
venture and
or
over.
The
in
ments
dation
is
occasional
17
de¬
would
tion on the list of new
highs, business is electronics prod¬ indicate. It posted record sales
including such as Zenith, ucts, but it is somewhat di¬ last year and since has posted
Automatic
Uncertainty
Autos found little to cheer
week to indicate either what
their
dividend this year in view of
happened the high expectations for 1960
before.
But it couldn't stop earnings.
them from good representa¬
The
bulk
of
Amphenol's
amended plan.
an
had
•
troubles which has
STREETE
tral's offer unless C&O
a
long holiday week¬
making for an extended
trading shutdown, stocks nat¬
urally did little decisive this
end
items
AND YOU
...
(2817)
and moved
twice
over.
[The views expressed in this article
do
not
cide
necessarily at
those
with
They
are
author
time coin¬
any
of the "Chronicle
presented
as
those of the
only.}
W. C. Langley
To Admit Sands
W. C. Langley & Co., 115 Broad¬
way,
New York City, members of
the New York Stock
Exchange,
on
July 7 will admit John K. Sands
to
partnership.
Higgins Officer
Of Gairdner Co.
.
-
This announcement is neither
an
offer to sell
solicitation of an offer to buy
nor a
of these securities. The offer will be made
any
The
only by the Prospectus.
somewhat
''
..
■
all
]
.
.
Kenrich Petrochemicals, Inc.
$175,000
;
*
f
**
';
'
-
;
•
•
»
jj
w
*.
H
'
*
7% Ten Year Convertible Subordinate Debentures
Due
April 1, 1970
the
at
50 and
new
55,000 Shares
Class A Common Stock
more.
and
Share
verse
of
only in States where the securities may
be obtained
be legally offered.
of
the
have
favor
any
of
George
Philadelphia Corporation
Neiy York 5, N.Y.
WHITEHALL 3-5442
many
And where
dividend
Amphenol
via
has
even
extra
and is
more
or
Specialties, Inc.
Common Stock
(Par Value 10c
per
Price $3 per
share)
share
A copy of the Offering Circular may be obtained
from the Undersigned only in States in which
the Undersigned may legally distribute the same.
United Planning Corporation
1180 Raymond Boulevard
Newark 2, N. J.
in¬
payment in four
an
Wall Street, New York City.
that
any
of the last five years
gesse
many
items
eschew
candidate for
Inc.,
di¬
com¬
persisent
its
Company
W.
such
creased
been
June 30,1960
Transistor
a
in
burdens,
has
Treasurer
83,000 Shares
elec¬
including the
been
&
NEW ISSUE
It is
quality
electronic
Gairdner
-
is neither an offer to sell nor a solicitation to buy
of these securities. The offering is made
only by the Offering Circular.
Amphenol
equipment to
lines
puter field.
Exchange Place,
rather
Borg Corp. late in 1958.
supplier
Secretary
announcement
...
Copies of the Preliminary Prospectus may
40
a
result
between
Electronics
tronic
First
As it exists to¬
the
one,
merger
a
Price $3.50 per
17-times
around
This
anticipated earnings for this
year
where others in the
group show multiples of 40,
day, the company is
Price: 100%
($.20 Par Value)
recent
play has cen¬
tered
could
be
AmphenolBorg which has been avail¬
able
Higgins
A.
elected
neglected
item in the electronics where
NEW ISSUES
Bayne
a
lar¬
stock
The James
Company
369 Lexington Ave.
New York 17, N. Y.
Mutual Fund Sales Co.
224 Paterson Ave.
•
East Rutherford, N. J.
of
60
18
What Has Been Happening
To
that the percentage
income accounted for by consump¬
upset in the gener¬
ally accepted relationship between consumer spending and income
during the last decade. Data computed show that the former did not
the
latter
consumption expendi¬
leaving personal
rose
tures, as a result, relatively stable, The significantly
the last six
marked vola¬
personal income.
the
personal consumption ex¬
penditures constitute the most im¬
ence
portant classification of outlays—
to
by dollar value at least—that make
up
the gross
national product
all
the
goods
services
and
such
period
as
endar
cal¬
a
ex¬
amine into the
furniture
account
this
during
perience
Dr. R. E.
recent
with three
automobiles,
This
like.
ex¬
distorted during the
was
because of the limited
war
personal
ing and other controls. An unusu¬
years
availability of these goods, ration¬
analyze
to
consumption outlays in accordance
between
war^ears,' as disposable
the
tne
increases
increases,
outlavs
outlays
for
tor
expenditures lag the inin income with spending
consumer
crease
for
non-durables decreasing
as
a
of the total but
durables and
services rising in percentage. This
all is in keeping with the general
belief that the marginal propenrelative
with
portion
for
outlays
sity to consume declines with increase
in income- and
increases
with
maintain
will
people
income.
in
decreases
Thus,
greater
a
consumption ratio with decreased
and vice versa. Further,
income,
there
are
account,
consumption
the
within
differences
experi-
in
DISPOSABLE PERSONAL INCOME
AND
PERCENTAGE CHANGES
depicts the relationship
disposable personal in¬
(in current
■1
.
.
*•
tl0n expenditures but not in the
Income went up
same proportion
J3/ 13.8% but outlays increased by
*be smaller amount of 11.8%. Consumption accounted for 99.8% of
disposable income and savings just
re-appeared. With the increase in
continued
consumption
1938,
until
income
increase
to
% of P.C.E.
-
(2)/(3)
.
%
Year %
x
$
83.1
■■
93.9 %
$ 79.0
1930
.
74.4
71.0
95.5.
—10.5%
—10.1%
63.8
61.3
96.1
—14.2
—13.5
1935
6.2
101.7
99.8
13.8
56.3
96.8
12.1
13.5
11.2
—
11.8
1936
66.2
62.6
1937
71.0
67.2
65.7
64.6
98.4
1939
70.4
67.6
96.2
7.2
4.5 '
1940
76.1
71.9
94.4
8.1
6.4
1941
•
[
4
93.0
81.9
88.1
22.2
13.9
117.5
1942
i
•
,
.
7.4
^
.
1945
t
1946
160.6
147.1
165.4
189.3
178.3
94.3
1949
*
1950
181.2
.
195.0
—
227.5
209.8
;
,
93.9
1952
238.7
252.5
Much of the
relationship
hovered between 10 and
12% of: consumer outlays from
1929 to 1952. This percentage has
232.6
there
I950's
was
relationship
rather
a
between
clear
incremental
changes in disposable income and
marginal changes in consumption.
although
a
slow but' Year-to-year changes in dispos¬
steady increase has manifested it-/ able income usually elicited a sub¬
self since 1948.
At present these stantially
smaller corresponding
portance
account for 3.6%
expenditures,
all
of
change in income,
r ing side,-and vice
on
the increas¬
versa
for
a
•Contrasts Volatility of Durable to
The
however, people
be increasing their con¬
to
seem
Non-Durable Spending
:
sumption
expenditures
almost
in
sensitivity of con-; equivalent with increases in in¬
come
so
that personal consump¬
to incremental changes in
greater
sumers
js
jncome
for
revealed
tion
consumer
tween
expenditures
spending declined approxi-
durable
the
mately 41%, outlays for durables
dropped some 62%. From 1929 to
stable.
have
become
consumers
It appears
have
that
accepted
Hur"
ing for the future. Also, because
of the nature of many fixed out¬
lays that are forced upon the con¬
because
sumer
of
so
many credit
ij commitments, he has less ability
about 3%. This is signifi¬
and
household
are
highly
income
and
to
juggle his outlays as income
changes. With this in mind, it be¬
comes
increasingly important that
ap-, differences
for
earn¬
12.4
7.7
Non-durables, especially food,
the other, hand, remain rela¬
on
tively constant and are less sen¬
sitive. This was quite apparent in
1.6
7.6
9.6
7.6
4.9
4.7
58
5.8
5.8
non-durables
apart.
Indeed,
much to argue that the
durables
ings.
between expenditures
durables,
volatile
consumer
take
on
characteristics of
and
there
is
outlays for
more
of
the
i
4
238.0
274.5
256.9
1956
292.9
270.0
1957
307.9
1958
316.5
1955
I".
256.9
1954
,s
i
i
—
r
'
Source:
92.2
',
'
; 92.8
,
■
1 '
'93.6 r
*
the most recent recession of 1957-
'
<*
g.ff'*-'
when
expenditures
for
non-
gross private do¬
consumption
show
in
a
that
closer
expenditures
and
affinity for changes
account.
Cyclical
down¬
*
<
«
7 g
*
\
the total to 48.5%
ofj turns have been less severe in rebut outlays for centr
year-because of the^ reaction
5.1
durables
5.1
5.5
2.8
12.8%. This difference in type of
2.9
6.7
284.8
92.7
293.0
92.5
~Survey of Current Business plus " Calculations by writer.
2.3
.
92.3
.
1960 for the purpose
of financing deferred payment ac¬
of
counts
Montgomery
Ward
&
Co., Inc.,,one of the world's large
retail
merchandising organiza¬
3,
1960.
all
owns
the
in
000,000
of
over
fiscal
$1,000,ended
year
The latter company
the outstanding stock
of Montgomery Ward Credit Cor¬
poration, representing
The
net
invest¬
an
ment of $25,000,000.
:
from
proceeds
the
of¬
fering of debentures will be added
to the general funds of Montgom¬
ery Ward Credit Corp. and will
be
available
deferred
for
the
payment
purchase
accounts
the parent company.
Until
ployed, the proceeds
may
in
whole
part
or
reduce
bank
finance
the
counts.
so
em¬
be used
temporarily
loans
to
incurred
purchase of such
v
of
from
to
ac¬
■
The debentures
are
not redeem¬
able prior to July 1, 1968. On and
after that date they will be re¬
deemable
102 V2%
at
prices
to
ranging from
100%,
interest.
plus
./■
accrued
.
Capitalization as of May 2, 1960,
adjusted to give effect to the sale
of
the debentures, comprised the
$50,000,000 debentures offered to¬
day and 250,000 shares of common
stock,
value
par
$100
share.
per
Also
outstanding on May 2 were
short-term bank loans aggregating
$40,800,000 and commercial paper
the
principal amount of $18,-
Hamilton Cosco
Stock Offered
An
offering
Inc.,
of
300,000
shares
stock of Hamilton
common
of
Cosco,
(Columbus,
Ind.)
is being
underwriting group
headed by Smith, Barney & Co.,
Inc.
and
City Securities Corp.
The stock is priced at $21.25 a
made
by
an
share.
•
The
offering does not represent
financing by the Company
new
but
a
sale
founders
by the Hamilton family,
of
the
of.
Company,
a
part of their substantial holdings
of Hamilton Cosco stock.
The
broad
kitchen stools; utility tables and
serving carts. It also manufactures
extensive line of office chairs,
an
metal frame upholstered furniture
and occasional tables for home and
commercial
at
use.
Columbus,
Plants
Ind.
W. Va.
during 1959 totaled $25,net income was $2,-
and
206,263, equal to $1.27
the
located
Weirton,
;fV-.
Sales
414,949
are
and
1,738,551
a
share on
shares pres¬
common
ently outstanding. Quarterly cash
dividends have
common
stock
been
since
paid
on
the
1948; in ad¬
dition the company has paid
stock
dividends of 20% in 1956 and 10%
in 1957 and
1958.
S. M. Probst Joins
durables increased from 48.2%
1.7'
'
in February,
mestic investment than
they do of
'
,
at
a
worry about provid¬
nntlav^frfr
priced
are
99V2%, plus accrued interest.
The corporation was organized
company
manufactures a
line
of
products
in
the
housewares field, including fold¬
sort of confidence in the
ability
ing card tables and chairs; ju¬
of the economy to recover rapidly
venile
products
such
as
high
from adverse conditions and that
chairs, play pens and cribs; metal
there is less
relatively
goods. For example, be1929 and 1933> while cori-
sumer
underwriting group
Lehman "Brothers.
by
debentures
The
de¬
cline. Since 1950,
20.9
11-3
consumer
ing the last decade. Prior to the
reached a
consumer
nationwide
managed
generally accepted
between
upset by consumer reactions dur¬
declined steadily since 1952 and
reached a low of 8.8% in 1958.
$50,000,000
336,000.
expenditures and income has been
years,
outlays
of
1, 1980 was made on June 28 by
a
in
Pattern
Ex¬
percentages.
0.2
■
>
91.8
219.8
1953
*
and
penditures for clothing and shoes,
with
the
exception of the war
ness
i
*
A
totals
able
9.5
92.3
,
t
1951
-
95.6
207.1
189.7
__J
*
been
able
expenditures
have
ownership.
largely responsible for the rela¬
Notes Change in Traditional
tively consistent rise in non-dur¬
10.8
5.3
97.3
housing that
for, about one-third of all
and services
react quickly to changes in busi-,
9.2
6.8
91.8
170.1
1948
I
accounts
12.0
2.4
important compo¬
nents. of this group is
service outlays. It appears that this
in incremental income. Even with- force will continue for some time
in non-durables the record varies in; view of the tremendous expan¬
as
amori^ 'cb'mmodit^'groupings. sion that has taken place in pri¬
Outlays for food and ..alcohplid" vate home ownership since 1946
.beverages, accounting for slightly and the easing of financing pro¬
Otal of non-dur- *
over half of the tbtal of nor
visions
for home
building ' and
outlays
9.6
13.6
80.9
121.7
150.4
_
One of the most
of World War II. This
is in keeping with the lesser sen¬
sitivity of these outlays to changes
approach
automobiles
26.3
74.8-
*
1947
%
until the
pliances, declined. Durable goods
"
1944
total,
the
3.9
—
'9:9
75.3
100.5
109.8
—
76.3
89.7
133.5
146.8
1943
1946, advancing from 31.7% of the
total in that year to 38.7% by 1958.
7.2
7.2
94.8
..
'
relatively .constant until 1932. In
1933
they took an increasingly
decrease in personal con-: any analysis of consumer outlays
sumption expenditures, in total, that is to have
meaning for
but durable goods outlays, espe¬
the businessman must
keep the
cially for such big ticket items as
8.5
94.7
—
1938
it
i
comparison, non-durables, as
a per cent of the total of all con¬
sumer
expenditures,
remained
year
5.9
46.4
51.9
58.3
-
of con¬
sumer expenditures — services —
consisting mainly of housing and
household operations,, transporta¬
tion and personal services, have
demonstrated a steady rise since
year
of
third^ component
The
riods
—196
52.0
1934
j f
j :
—23.7
101.11.
45.7
1933
]
:
49.3
48.7
1932
I
t
expenditures showed
decline on a year to
0f consumer
cant, for in later recessionary pe¬
there occurred no year to
•:
1931
1
,
of only
P.C.E.
war
and parts as a result of
and the backed up pur¬
chasing power available to make
the purchases, as well as the eas¬
ing of credit means with which
As to groups of consumer ex- to purchase durables. As a further
penditures
during
this period, anomaly during this period, even
seVeral interesting results appear, though
disposable
income
in¬
From 1929 to 1933 when the total creased, personal savings declined.
from 47.7% to 46.3%, or a decline
Change in
Change in.
D.P.I.
ij
the
drop of 36.2%) whereas expendH
tures for non-durables fell only
(6)
Year-to-
Year
to D.P.I.
Consumption
Expenditures
still unsatisified demand for auto¬
mobiles
dropped from 11.6 to 7.4 (a
(5)
Year-to-
(4)
explanation could be in the
The
in existence rose
percentage
offering
Feb.
rapid rate than income
constant
Public
Montgomery Ward Credit Corpo¬
ration 4%% debentures due
July
tions with net sales of
which continued to ^ increase in
spite of the overall decline in business and gross national product. .
a
Heads Mont. Ward
clothing percentage's all dropped
but automobile outlays increased.
SUmer SPending> Outlays ">r dUF
ables
of dollars)
billions
(3)
Personal
t
in
FROM YEAR TO YEAR, 1929-1958
j«
1929
not
but
proportion so that, by 1937, consumption outlays were accounting
for only 94.8% of disposable income. A sudden drop in income in
1938 of 7.4% witnessed a decline
Income
'
.
in 1933. As soon as disposable lncome rose m 1934, so did consump-
Personal
i
were
ex¬
53.3%.
beinS over 100 %> indicates no Gas and oil outlays have been relatively constant in percentage 1m-
ure>
sayings and eyen SQme dis_saving
Disposable
Year
jl
from 93.9 to 101,7. The latter fig-
(2)
(1)
more
a
Lehman Bros.
penditures dropped from 55.4% to
Food,; beverage and
showing
varying
influences
at
during
stability
1953-1958,
increases
13.6 and non-durable
12.7 to
the period
year to year
from 1.7% to
6 8% during the period. Personal
consumption outlays during some,
0f these years when recessionary
tive
PERSONAL CONSUMPTION EXPENDITURES
AND
0.2% between these two *years;
income
disposable
greater
As a first approximation, it is
come,
personal consumption expossible to state that personal con- penditures and percentage changes
gumption expenditures do not in¬ among these for the years 1929crease
in proportion to the in¬ 1958. The dollar items are in curcrease in disposable
personal in¬ rent dollars since the interest is
come—the income that remains to in
percentages of the- total going:
the
individual after
paying all into
consumption
rather
than
taxes and is his to consume or to
comparing the consumption of one
save.
Thus, as disposable income
year with that of another.
decreases, personal consumption
This table shows that from 1929
expenditures become an increas¬
to
1933, disposable personal in¬
ingly greater percentage of the
come
showed
a
steady decline,
disposable income itself. Further¬
dropping by approximately 46.2%
more, expenditures for non-dur¬
over
this short period. Personal
ables tend to account largely for
consumption expenditures, to be
this increasing proportion, while
sure, also declined; but their prothe relative position of durables
HpriirTpq'"rnnwriTv"with~the ex~ portion of disposable income rose
income
income
that
fact
and continued this trend
Table I
but'
consumer expenditures
advanced
by 1.6%. As a per cent of the total
for all consumption outlays, dur¬
able goods expenditures rose from
rang¬
has not shown the same compara-
ally high rate of personal savings
durables and for services.
ception of
years,
seven
or
resulted.
groupings, namely out-
durable goods, for non-
lays for
the
and
Slesinger
is
years.
It
convenient
the
household appliances,
of
behavior
con-
durables, but will tend to expend
proportionately more for the purchase of durable goods such as
year) it
is well to
total
and
declines
gap
between conexpenditures' and disposable income widens, consumers
do
not
generally increase their
relative
expenditures
for
non-
given
a
time
a
sumption
economy
during
greater percentage
of expenditures for non-durables
such as food, clothing and fuel as
When
produced by
an
maintain
income
of
value
as
sumption outlays come to constitute a greater proportion of disposable income.
(the mar¬
ket
between
durables, nondurables and services. People tend
Since
Thursday, June 30, 1960
.
were
ing from a low of 92.2% in 1953
to a high of 93.6% in 1955. This is
somewhat interesting in view of
tility of durable goods spending, and that of non-durable goods and
services, are compared to changes in
.
98.4. The
to
rose
relationships
Pittsburgh, Pittsburgh, Pa.
as
.
percentage econdmy. Grave errors in fore¬
distorted some¬ casting can occur if the totals for
what during the war and post war consumption outlays are used in
which divergent movements
years because of the unavailability
of goods and the later pressure to among the parts may produce a
satisfy
pent-up
demands.
The relatively stable total that covers
Korean
conflict helped produce up significant variations.
similar results during the early
The
recession of 1948-49 was
1950's.
The
proportion of con¬ one in which s the above-described
sumption to disposable income has reactions did not hold true to form.
remained relatively stable during Disposable income rose by only
tion
By Reuben E. Slesinger, Professor of Economics, University of
Economist directs attention of businessmen to an
Chronicle
separating these components when
analyzing gross national product
and the status of the health of the
of only 3.9% so
of disposable
consumption
in
decline
Commercial and Financial
The
(2818)
dropped from
14.4%
to'
reaction by durables and non-dur¬
ables
points up the necessity for
of consumer expenditures
and the
fact that they have acted
as a sort
of stabilizer.
\
Hinkley & Co., Inc. Staff
(Special to The
Financial
Chronicle)
Probst
DENVER,
Colo.—Sue
has joined
the staff1 bf Donald
M.
J.f
Hinkley & Co., Inc., 215 Denargo
Market. Miss Probst was formerly
cashier for Amos C. Sudler & Co.
Volume 191
Number
1
v
5964
.
.
The Commercial and
.
Financial Chronicle
(2819)
■
Why We Must Soon Have a
National Mortgage Market
private enterprise can meet
challenge of increased de¬
the
mands in the next decade
or
two,
it
to
contribute
Bankers Association, New York City
create
an
market in
without
the
ance
serve
as
road
a
meet
adequate secondary market for secondary mort¬
market
mechanism
for government
conventional mortgages, and
y
to
that
be solved in order to
runs
;
is
done
via
in
entry. He contrasts VA/FHA with
competitively
-
the
financing,
gage
y
in
greater
of
area
it
at the
meet-
mort¬
lead
may
government
to
intervention.
available
supply of
goods
and
services. The price mechanism and
instability
since
the
additional
funds, coming into the mortgage
Housing, Senate Banking and
Currency Committee, the demand
for
housing y.,
y '
the
market via government interven¬
tion are usually in addition to all
the
next 10 years
will
s
be
i d
con-
rably
e
greater than
it
during
was
the
decade
the
rate
to
serve
equate
supply and demand, The increase
housing during
the next decade, therefore,
will
have to be met out of the supply
of goods and services we produce
during that time. As we have seen
,
of
195 O's.
decade
because
another
that
for;
is
reason
one
thought desir¬
Kurt
Flexner
the
in
different
the
has
economy
areas
been
of
accepted
and
is the expected
already is taken for granted.
Housing has become a major issue
of
country* A
1970.
Perhaps
National
Gross
Product
is
expected to increase by 50%,
or
to $750 billion in 1970. This
means that there will be not only
as
rate
bond.
Every effort
it
should
appeal to
be
made
type
of
every
mortgage debt which ex¬
$185 billion today is expect¬
ed to reach well over $300 billion
chased by investors who still dis¬
criminate
against mortgages,.; In
other words, if housing Is to be
by 1970. It is already the largest
single private debt in the United
financed
ceeds
States.
Its share of the total debt
will
even
larger 10 years from
v
now.
so
that
it-
effectively with
of credit
every
other type
instrument* There is
why
reason
compete
can
a
mortgage
no
cannot
offer in terms of
yield, safety, li¬
quidity,
and
marketability
the
same advantages
enjoyed by any
creased
instrument
pur¬
privately without in¬
government intervention,
certain weaknesses
the
now
mortgage
now
market
eliminated.
found in
must
be
Contrasts Today's Mortgages
is
quite likely that the de¬
housing in the future
will develop into an important po¬
for
litical and economic challenge for
nation, and it is equally im¬
this challenge
be
•faced squarely. The demand for
housing, however, is only one of
the
many
demands
households
that
and business make upon an econ-
Even at the. level of full ,em¬
ployment the Gross National Prod¬
uct
is,' of course, limited, by our
physical ability to produce. As our
population grows and as we ad¬
vance
scientifically and' techno¬
logically, we produce more;\ but
the total amount is always limited
and must be allocated among the
great multitude of demands which
always exist. Unless there is sig¬
nificant unemployment, it is not
possible at any given time to in¬
crease output in housing without
one
or
of ways.
Refers
currently
is
Government
and
guar¬
anteed mortgages do possess a fair
degree of national marketability,
but the rigidities found in the in¬
in
when
only
stantiate this..Conventional
an
economy op*-
not
and
think
for
is
it
a
mistake
to
take
that the
granted
mortgage
liquidityor national
marketability or ease of handling
lacks
of
the
other
instruments
bonds.
of
sirable
instrument
an
type
every
A
credit
or
of
Allen,
York
St.
of
Louis,
e
Com¬
elected
was
Chemical
t i 1
n
Trust
Stebbins
Bank
New
Trust
Company, Secretary;
Hurley Bogardus, of Morgan
Guaranty Trust .Company of New
York, Treasurer; and William F.
P.
Morgan of Blyth &
William
Bond
Sanders
Co.
The
of
Buyer, members
Board
and
Inc.
Shanks
of
more
con¬
the
of
of Governors.
crecut lor
oi
investor
that
the
question of government interven¬
tion would be reduced to
mum.
cies
Imperfections
in
never
private
be the
or
mini¬
a
inefficien¬
enterprise should
through which
road
Thompson Agency
Names Strouse
Norman H. Strouse, President
since 1955, has become Chief Ex¬
studying
Mortgage
.[■.
]■
and
on major points. It is pos¬
sible, however, to give a general
example to show how the conven¬
tional mortgage can be given na¬
tional marketability. ..In general,
an organization could be created,
privately
owned, ; which
would
issue debentures backed by mort¬
reached
Investors
such
as
pension
than the mort¬
tional
Colo.
Mason
A.
associated
Bank
Building. Mr. Wad¬
dell formerly conducted his own
business
investment
Richard
added
C.
&
branch
Bank
Mr.
Lee, Inc., has opened
office
in
Building
agement
of
the
under
Harold
Burrows
was
for
manager
& Co. '
Denver
I.
Investors
JACKSON, Miss. —Allen Securi¬
ties Co., Inc. has been formed to
of
Allen
investment
Securities
Plaza Building.
Ownership, capital,
A.
This
Although
mortgage
personal
to
announcement
business
Company,
are
Bry¬
ant M. Allen, President, and
Jesse
Officers
Jett, Secretary and Treasurer.
is neither
an
securities. The
offer
to
sell
nor a
the
with
offices
Parkway
ties
phen
to
at
5229
engage
business.
solicitation of
offer is made only by
an
instrument
of
vestors
as
offer to buy
any
of these
Offering Circular.
credit
COMMON STOCK
pension funds, I believe
Offering Price $1 per Share
attractive to such investors.
On the other
Copies of the Offering Circular
may
such states where the securities may
cumbersome
investments by
such institutional investors as pen¬
be obtained only in
be legally offered.
sion funds and trust
others;1 These
funds, and by
characteristics' of
n
.
t
>
.
i
»
Michael Fieldman
inated.
82 Beaver Street
•
BOwling Green 9-9057
•
securi¬
are
Ste¬
and
.
-
appeal to such institutional in¬
a
Laviani, Secretary-Treas¬
urer.
an
Pyramid
President,
American Molded Fiberglass Co.
conventional
Pont
Douglaston
in
Officers
Rosenbaum,
Michael
—
300,000 Shares
is considered to be too
an
■'
local
has been formed
Corp.
mort7
New Issue
du
Pyramid Investors Corp.
staff.
Now Corporation
the
man¬
Burrows.
formerly
DOUGLASTON, N. Y.
continue
the
M.
Francis
a
National
y
Luby has also been
the firm's
to
Albu¬
in
y
-y,
querque.
Naturally, there are many
questions and problems that arise
in connection with such a plan.
and manage-
Richard
—
has ' become
as
■'
Mason & Lee Branch
with Quinn & Co., American Na¬
the stage of analysis,
Y
CHARLOTTESVILLE, Va.
(Special to The Financial Chronicle)
Waddell
Samuel W. Meek continue
Vice-Chairmen.
Workshop, Chicago, 111.
Waddell With Quinn Co.
the
and
on
relatively free market mortgages are technical rather
atmosphere under conditions of than generic, however, and with
fairly stable prices, each sector of imagination and effort, whatever
the economy will bid according to handicaps now exist can be elim¬
the
I
•
it
gional
Example
a
conditions of demand for
country
♦An address by Dr. Flexner before the
American Bankers Association's 3rd Re¬
definite conclusions have been
the other hand, whicli
are not subject to the same inter¬
est rate rigidities suffer from an
equally serious handicap—that is,
they lack national marketability, a
handicap which discourages many
potential investors. '
gages,
ered
local government in¬
the
because they are insured or gauranteed by the government.
still in
no
guarantees are often still consid¬
tervention. When
impersonal and market¬
DENVER,
demand for housing is
to be greatest. One need
look at the record to sub¬
prove
via
Merca
Eugene A. Mintkeski
eliminated.
the
likely
that sector of the economy which
is more or less planned as a result
its
-
discourage investment
such mortgages at the very time
a
erates in
Michigan
Corporation.
George R.
Waldmanrt, of
now
exist in
Vice-
First
terest rates
free market mechanism except for
generally
na¬
gages.
insured
what
vate, business, and public demands
or
ernment if weaknesses which
problems involved in creating an
adequate secondary market for
conventional mortgages.
We are
hand, FHA and VA
mortgages which have been made
impersonal through insurance or
of federal
of
Senior
why that
industry more than any other
needs to depend upon special priv¬
ileges or special aid from the gov¬
..The American Bankers Associa¬
tion
debentures rather
"
more
produce is determined by pri¬
allocated
to
;YY
ABA
to
that it is only a matter of knowhow to convert these mortgages
into credit instruments that will
other industries.
In the American economy,
themselves
lend
funds consequently would buy the
*
in
to
gages.
'
An Important Challenge
output
mort¬
gages, as I have pointed out, are
too
personal
an
instrument of
to
other credit
The
Conventional
other instrument of credit.
any
make
desirable
now.
is
of
the
reason
•.
as
investor
and
President
real
no
in¬
ecutive
Officer
of
J.
Walter
the government enters into eco¬
tervention, it is extremely impor¬ tionwide trading.r,Even. FHA and
Thompson ^Company, succeeding
nomic activity; for with some ef¬
tant to make the housing industry GI .mortgages are too difficult to
fort and imagination, inefficiencies Stanley Resor who continues as
as efficient as possible. In the
field; handle in 'the opinion of many po¬
land imperfections can be elimi¬ Chairman) -it was announced fol¬
of finance,
this means "that tlie' tential investors. These handicaps,
lowing a meeting of the Board of
nated.
•
r ■■ ;y ■
mortgage
as
an
instrument
of however, can be overcome in any
Directors.
Henry C. Flower, Jr.,
families in 10 years
from now, but it means that the
average family will have an in¬
come of over $9,000 annually, with
a rise in its expenditure for hous¬
ing from $800 annually today to
$1,200 annually in 10 years from
more
mortgage differs,
initially from a corpo¬
course,
number
by
politics; and in order
H.
There is
istence of
credit should be made
we
Callaway,
industry is the larg¬
industry which serves all the
people in every economic group.
est
structive approach I think would
be to make the mortgage so de¬
a highly developed sec¬
ondary market. Corporate stocks
and bonds are freely traded across
the
equally important, however, is the
reducing
David
The housing
government
vention
increase, which according to pres¬
ent indications will add 35,000,000
,
succeeds
private debt in the United States.
and largely as a result of the ex¬
yyy^yy•' y.'-. y
ing based? Perhaps the most im¬
omy.
in¬
tain amount of government inter¬
portant is the expected population
.
is
-
whole without the benefit of gov¬
ernment insurance or guarantees
credit
portant
employment
inflationary. yy
level
.
in American
this
the
full
near
evitably
to avoid excessive government
mand
.
24.
June
He
across
of
which at
outlays
increase in the demand for hous¬
It
held
largest
able
In the most advanced economies,
including the United States, a cer¬
what assumptions
be
membership
na¬
pany
other
the
of
g
Vice-President; Leonard
able.
ing
twice
nearly 1,400,0 0 0.
Upon
many
The mortgage debt is the
n
are
last
housing starts
averaged 1,200,000
an¬
nually reach-
that
mortgage cart be given
tional marketability.
a
i
they
or
fact
as
merely is in¬
one example of
;;
housing,
beings
serve
the fiscal year
private financing can be
Corporate bonds are
purchased
by investors because
in the demand for
During the
human
It
Municipal Forum of New York for
The
development of a strong
secondary market will do much to
in the past, however, the govern-. build
a strong foundation for pri¬
ment sometimes intervenes by at¬ vate
enterprise in the housing in¬
tempting to increase the supply in dustry. American business enter¬
a
particular
industry,
such
as prise
has been financed on the
,
.
during
interest
Mintkeski,' Treasurer
elected President of The
was
1960-61
hand, if private enter¬
continue
A.
of The Port of New York Author¬
ity,
annual
all
how
to
Eugene
consideration.
which
prise permits certain shortcomings
down the problems that remain to"
the plan
as
ation, for that plan is still under
tended to
other
Of Munic. Forum
the
free
a
recently
published by the Subcommittee on
report
a
collateral for
Mintkeski Pres.
that ultimately will be proposed
by the American Bankers Associ¬
This often contributes to economic
to
and
as
type of insur¬
guarantee to be applied
mortgages or the bonds.
industries compete equally for the
the
desirable credit instrument—in yield, safety, liquidity and marketability,
According
the
direction of the flow of credit. On
do not
Other
infla¬
supply of credit. The
price of money will determine the
imperfections and
make conventional mortgages a
it
or
available
*
challenging demand for housing
warns
increased
This will not prove
if
government intervention. He
bonds
serve
This is not to be taken
market
,
some.
to
gage
inefficiencies in private enterprise must be solved so they
:
i
,
,
secondary
market
for
mortgages will attract, if neces¬
tionary
order to meet the future
which will
nomic stability as a whole. An im¬
A.B.A. study now taking place on
Dr. Flexner underscores the pressing need to develop such a
gages,
-
»
merely
problems are standards to be ap¬
plied for selecting the mortgages
proved
demand.
how to
much
if
are
sary, additional funds to the mort¬
By Dr. Kurt F. Flexner,* Director, Mortgage Finance, American
on an
ment
eco¬
will
'i
-
.
If
Parting the curtains slightly
19
,
New York 5, N. Y.
Commercial and Financial
The
20
(2820)
NEWS ABOUT
Belvidere," Belvidere,
sets.
undivided
BANKS AND BANKERS
Branches
New
•
•
New Offices, etc.
the com¬
and surplus of the
bank from $150,000,000
to $160,-
Revised Capitalizations
•
Former
Drouot
and
the
*
*
Ralph
President
Stillman,
S.
of
Graee National Bank *>f New York,
announced June 27 the
of
Burrough
G.
Joseph
promotion
from
mm
to Vice-Presid
Burrough
has
36 years,
Mr. Fox has been in
charge of Brighton since that of¬
fice opened in 1942.
with the
ated
Bank for over
36
Succeeding Mr. Fox as Brighton
years.
also
man
R.
Wet¬
was
Street.
will
He
Francis
romoted
p
McGuirk,
F.
formerly
and
Manager of the Bank's Marlboro
office at Avenue X and West 2nd
that
Jr.,
John
Paul
is
Vice-President
an¬
nounced
zel,
Manager
Still-
Mr.
A.
assisted
be
Vice-President.
from Assistant
Cashier
Edward
to
Ralph S. Stillman
Assistant
Thomas
Vice-President.
J.
Gal-
lagher, Matthew J. Ladolcetta and
Edward J. Simmons were named
Assistant Cashiers.
Vice-Presidents NorJr., Walter P.
Moran and Albert W. Van Gelder
have
been
promoted to VicePresidents of the Chemical Bank
New York Trust Company, New
York.
Mr. Berkeley is with the
national division. Mr. Moran and
Mr.
Van
Gelder are with
the
Assistant
Berkeley
borne
metropolitan division.
Mr. Berkeley joined the Chem¬
ical Bank
and Trust Company,
New York in 1950.
He was elec¬
ted an Assistant Secretary in 1955
and
Assistant
an
Vice-President
Moran
Mr.
an
was
Vice-President
of
Assistant
the New York
with the Chemical Bank
last Sep¬
tember.
joined
the
Corn Exchange Bank Trust Com¬
came
Gelder
Van
Mr.
pany
Russell
Mr.
in New York in 1925 and be¬
Assistant Treasurer of the
of
suc¬
Executive
for
Bank
The
Savings in the City
is
of New York
end of the
month, after 38 years of service.
retiring
the
at
*
*
*
Securities
Montreal
has
Agency,
ant
of the
of
the
—
named
been
York
New
Assist¬
according
to an an¬
nouncement by Gordon V. Adam's,
Senior Agent.
He will continue
to be in charge of securities.
Mr.
Hudkins
joined the New
York:
Agency of the Bank: of
Agent,
Montreal
in
is
a
mem¬
of
Division
Cashiers'
the
of
He
1936.
of Stock Exchange
th Association
Firms.
*
*
*
Mr. Kelly joined
the City Sav¬
ings Bank of Brooklyn in 1919 and
also
*
*
the
of
Trustee
a
1950.
in
President
He
bank.
*
ical
Bank, Mr. Van Gelder be¬
came an Assistant Vice-President
Frank E.
Karelsen, Chairman, an¬
nounced
that
in 1954.
been
appointed
State
Bank
N.
Kenneth
pointed
Bacon
ap¬
Assistant Vice-Presi¬
an
Bank
of The
dent
has been
of New York,
according to an announcement by
the
Chairman, Albert C.
Sim-
Mr. Bacon will super¬
vise the activities of the Public
Relations Department and man¬
monds, Jr.
the
age
advertising
program
of
the bank.
*
of
in
tired
Long Beach,
re¬
finishing
30
February,
promoted from Assistant Secre¬
tary to Assistant Vice-President.
William F. Bell, Security Trad¬
ing, and Quentin C. Johnson, Se¬
curity Research, have been pro¬
to
Assistant
Secretaries.
moted
formerly served as man¬
in their respective depart¬
ments.
R.
Farhi
and
Frederick
Security Research,
appointed Assistant
Secretaries in their departments.
R.
Lansmann,
been
have
*
tional
*
*
the
to
of
the
Mr. Gilbert
died June 23, at the
York, announced that
Browne,
G.
age
of 71.
In
1928,
City
pany,
of its
Mr.
Browne was
ap¬
of the then
Trust Com¬
New York, and Chairman
pointed
Dania
Bank,
#
*
The Board Chairman of the Union
a
Bank
Director
Farmers
executive committee.
Pat-
died June 29
knecht, Jr.,
at the
of 80.
Mr. Johanknecht had been with
•
the
bank
59
Chairman
years,
last
31.
*
Parker
in
Auburn,
Company,
would
be
Midland
merged
Trust
New
N.
Y.,
into Marine
of Cen¬
York,
Syracuse,
N.
Y.
Corporation,
Buffalo, N. Y. State, owns 98% of
the
of
stock
and
pany
Auburn
94%
New
of
Trust
the
York's
Com¬
shares
bank
of
stock.
The merger is subject to
approval
by bank regulatory authorities.
Under the merger the Board of
Directors
burn
of Auburn
Trust
would
an
advisory board for Au¬
area.
Floyd J. Winter, Pres¬
ident of Auburn
with
1926
He
Trust, would be¬
Vice-President, while Eu¬
gene C. Donovan, Chairman of the
Auburn Trust Company would be¬
come
Chairman of the Advisory
dent
a
in
Director and Vice-Presi¬
the
The
merge Central New
York's $146,000,000 of assets with
banks
would
larger
bank.
F.
J.
Fo-
Vice-Presi¬
America, San
elected
&
Sammons
President
States
United
to
successor
as
Portland, Ore.,
E.
of
National
C.
the
Bank,
Edward J. Ko-
was
lar. Mr. Sammons has been named
Chairman, but will remain Chief
Executive Officer.
The
when
West Coast.
in
In
months
National
and
Bank
Trust
*
,
*
Pittsburgh, Pa.,
stockholders
approved by
was
at
special meeting
a
June 23.
Pittsburgh National Bank stock¬
holders effected the
splft.jthrqugh
the
amendment to
ticles
Bankjs Ar¬
Association
of
provfde
to"
of
the capital stock from $20 to $10
per share, and a resulting increase
from 1,513,070 to 3,026,140 in the
number of shares outstanding.
Both actions were recommended
rectors
di¬
meeting
regular
17.
May
The
their
at
$20
value shares cur¬
par
rently outstanding will automati¬
cally become $10 par value stock
and will be supplemented by new
certificates representing one new
share for each share now held,
Mr.
Agnew, President, said.
*
As of June
Md. and the Maryland Trust
into
merged
have
Baltimore
the
Na¬
The merger was de¬
tional Bank.
because of the
of the new Federal bank
The former Chair¬
is
Hooper S.
Chairman of the
now
Robert
bank.
consolidated
D.
H.
Harvey, now Vice-Chairman, was
the
President
of
the
Maryland
Trust
Company, while Tilton H.
Dobbin, still President, was Pres¬
ident of Fidelity-Baltimore.
than
$29,000,000 and
total assets in excess of $400,000,more
000 Baltimore National is now the
largest bank in Maryland.
*
*
*
Buck, William H. Bye,
Thomas F. Duffy, Robert P. Kline,
Lynn H. Miller and Frederick C.
Jay
K.
Pullman, of the banking depart¬
ment; Kenneth P. Kinney, of the
international banking department;
Benjamin C. Korschot and Carl
T. Lambrecht, in the trust depart¬
ment
the
and
William
investment
ment were
A.
Stenson
in
research
depart¬
elected Vice-Presidents
of the Northern Trust
Co., Chicago,
Illinois.
The
creased
its
*
National
Bank
of
in¬
common
thrift accounts.
Therefore, he
explained, thrift accounts in New
York are not building up in a
by
New York
savings banks
mitted
pay
Savings
of
of
Dime
The
Bank
Brooklyn.
remarks
were
Speech
Frederick W.Jackson
pre-
symposium
conference
and
a
directors'
meet¬
ing of the New York State Home
Builders
Association,
at
Bing-
of
Because
for
capital stock
from
$200,000
to
stock
dividend
effective June
$300,000
by
a
17.
(Number of shares outstanding—
6,000 shares, par value $50.)
this
Like¬
lender
a
advance
to
with any
he
the
extensive
make
mortgage
when
ments
siuation,
"it is difficult
explained,
commit¬
loan
foresee
cannot
degree of accuracy how
many
institution will
dollars! his
in
thrift
West
the
are per¬
depositors.
have
hamton, N. Y. on June 17.
On
is
that
and
banker
mortgage
finance
during the mid-year
at
rate
going into the stock mar¬
also is being spent for
consumer goods, he said.
ket
a
pared for de¬
livery
to
3%%
dividend
York is
con¬
tained in
because
manner
maximum
wise, money that normally would
go into thrift accounts in mortr
gage lending institutions in New
Mr. Jack¬
son's
been
on
President
several
accounts
Coast, according
months hence. Normally, projec¬
to Mr. Jackson, loans to veterans
tions can be made and advance
at the maximum permitted inter¬
commitments given to builders on
est
rate
of
5V4%
additionally
normal now.
interest, plus the lk of 1%
insurance fee received
5%%
"Nevertheless," Mr. Jackson
added, "commitments are being
mortgage
by the FHA, are discounted by as
as 6%
additionally. Build¬
much
ers'
loans in
construction
the
far
West
generally are commanding a
7% interest rate, plus 3% service
In
said
those
that
in
"here
New
Most of
us
in the
ing industry
mortgage lend¬
somewhat more
are
a
few weeks ago."
conventional
mortgages,
"money is available here for
on
conventional
loans at
6%."
Conventional mortgage
without
lending,
backing, is
government
increasing steadily in New York,
Mr.
Jackson
said, "because the
far-sighted New York legislature
has led the way in enacting bank¬
ing law amendments that benefit
every home buyer and builder in
State."
He
Form Reading
near
levels;"
count
Securities
NORTH
D.
READING, Mass.—Arthur
Mills and Walter J. Azwacki
have
formed
Securities
Reading
Co. with offices at 213 Main
to
Street
in the securities busi¬
Both have been associated
engage
ness.
with Eastern Investment Corp.
R. H. Shaw
Opens
CITY, Utah—Ray¬
mond H. Shaw is conducting a se¬
curities business from offices at
SAjLT
2644
LAKE
East
2940
Street.
South
explained that these amend¬
ments, enacted at the urging of
savings banks and the New York
State
Home
Builders
Association,
permit 90% 30-year mortgages up
to $25,000 without the
encumb¬
rances
of
governmental
red
"Thanks to
has
our
Vincent, James Opens
BROOKLYN,
Street
to
legislators," Mr.
A g o s t i
engage
business.
declared,
"New
York
the most comprehensive
home mortgage lend¬
N. Y.
—
Vincent,
James & Co., Inc. has been formed
with
offices at 2075
East
16th
tape
delays.
Jackson
Officers
Agostino,
and
D.
in
securities
a
are
Vincent J.
President; M. Richard
Secretary-Treasurer,
n o,
Agostino,
Vice-President.
liberal
ing laws of
"So
able in
York
nowhere
at
are
that virtually no
New York lender requires a dis¬
and
builders, and home mort¬
is being made avail¬
fairly substantial volume.
gage money
contrast, the Brooklyn bank¬
discounts
the
made to
optimistic than
fee.
and
But conditions are not
discounts of as much as
FHA-insured mortgages at
12%.
and
Belvidere, Illinois,
Second
Belvidere,
the
the
now
*
*
builders,
banks—have
normal
Chief Executive Officer
Fidelity-Baltimore,
Miles,
savings
Jackson, Vice-
er
of
and
Frederick W.
law.
and
man
Com¬
Md.,
buyers
Mr. Jackson said that individuals
that basis.
27, the Fidelity-Balti¬
Baltimore,
other
stated
was
home
York
sending money to Western insti¬
tutions which pay 4^2% interest
country, it
carry
*
National Bank, Baltimore,
more
less
of
Discussing the scarcity of mort¬
that has plagued New
gage money
—not
con¬
in
parts
reduction in the par value
a
is
York
than
*
split in the capital
stock of Pittsburgh National Bank,
for
financing
siderably
A two-for-one
an
throughout the nation, the
a home in New
of
cost
became the Union Trust Office
Mellon
spite of tight money conditions
have prevailed for several
that
1946,
Company
of
Trust
Union
Country
Bank of Brooklyn cites, among other yard¬
Union
The
Bank
Costs Lower in
sticks, very large discounts on which veterans' loans are made on
Pittsburgh, Pa.
joined Mellon
come
Board,
Official of Dime Savings
Company
The Marine Midland
and
N. Y. Than in Other Parts of
Frank
Pa.,
his banking
began
Trust Company of
With
*
announced that the Auburn
was
Trust
tral
its Presi¬
when he became
Dec.
*
It
was
Bank
National
Home Financing
ap¬
Denton, Vice-Chairman of the
merger
*
*
*
*
bank announced.
passage
Dania, Fla.
become
First
Na¬
City Trust Company, New
Directors
The
R.
layed for 30 days
adviser
Central
Victor
Pittsburgh,
Company,
tive
dent for 16 years
Troxell, Jr.
and
James Wood, both of the Security
Research Department, have been
been
has
Parker
D.
pointed Assistant Auditor at Mel¬
lon
National
Bank
and
Trust
pany,
York.
F.
Dallas
*
*
*
years' service with the First Na¬
tional City Bank of New York,
New York, he became administra¬
age
They
Long
After Mr. Shea
Beach, N. Y.
444,993
Planters
The
the
chogue, N. Y., Mr. Edwin Johan-
promotions and two new ap¬
Thomas
has
of
profits™
151,800
in total
$27,974,000
and
deposits
*
pointments were recently an¬
nounced by Albert C. Simmonds,
Jr., Chairman, The Bank of New
agers
Shea
E.
President
Savings Bank of Patchogue,
*
*
Four
John
8,485,370
12,465,580
421, 683
(Number
—
resources.
on
J.
8,638, 430
12,851, 917
"•;
15.
elected
a
new
posits of $124,908,000 and total re¬
sources of $139,248,000. The Union
Trust Company had $25,820,000 in
N. Y., died June 26.
was
*
the Com¬
had de¬
by Pittsburgh National Bank
New York, in 1946.
When
the banks merged with the Chem¬
*
Company
security
Discnts—
and
Undivided
Osborn
of
Francisco, Calif.
6,482,ioi
8,2io,oo5
holdings
Tns.
Bertram
Kelly, President of the City Sav¬
ings Bank of Brooklyn, Brooklyn,
Sixty-four-year-old
became
*
At the end of last year
Trust
F.
were
by
$726,000
sale
effective June
The
from
due
—
S. Govt,
U.
meeting soon.
a
and
banks
Company.
Department
of
Bank
at
offer
mercial
W. Freel Hudkins, Manager
Continental Bank and Trust Com¬
pany,
the
June 15 ,'60
Dec. 31,'59
$33,049, 582 $30,749,167
27,794,606
30,020, 438
resources
Cash
the
consider
will
Trust
Weehawken
Mr.
Sillery,
of
President
Zimmer,
the
by
dents of the Bank of
Deposits
C.
the Com¬
City, N. J., according to Harry
career
Company before it merged
Trust
office,
a&er of the Marlboro
ceeding Mr. McGuirk.
ber
1957.
in
Assistant
Vice-President, will become ManPuttre,
Vice-President
*
*
*
J.
Total
Company,
$726,000
shares
garty
Kentucky
land,
acquire the WeeUnion
to
hawken Trust
by
Assistant
Clements,
offered
has
to
outstanding
shares, par value $5.)
Bank, Ash-
National
Second
The
Jersey City, N. J.,
of New Jersey,
Vice-Presidents of
National Bank, Tulsa, Okla.
of
Harold
Company
mercial Trust. Stockholders of
Associated with The Lincoln for
associ¬
been
of
Manager
Beach office,
will become effective July 1.
Mr.
Cashier.
and
the Bank's Brighton
and
t
n
e
Board, The Lincoln Savings Bank,
Brooklyn, N. Y., announced that
the retirement of Arthur C. Fox,
Vice-President
Cashier
Chairman of the
Wilfred Wottrich,
$759,000
stock
Charles
*
Trust
Commercial
The
capital stock
dividend and from
to
named
were
common
$660,000
Officers, Alfred B.
H. Storm,
Trust
bined
000,000.
Consolidations
Boston, Mass., increased
captal
its
creased
from
♦
*
*
of Boston,
the First National Bank
Company of Rocky Mount
Mount, N. Car., has in¬
Rocky
stock
17.
tive June
Thursday, June 30, 1960
Trust
Bank
tional
$10,000,000 from
profits to surplus by
Bank of
Illinois, has
its name to "First Na¬
of Belvidere" effec¬
changed
>i*
*
*
transferred
The
. . .
National
Second
"The
$22,000,000 of as¬
Trust's
Auburn
Chronicle
any
desirable
continued,
have
state in the Union.
are
"that
followed
these
39
the
laws," he
other
lead
York and have enacted
of
states
New
or are con¬
sidering the enactment of similar
legislation."
Amibec-Southern Region
NORFOLK,
Va.—Albert
engaging
a
in
Zeno
is
securities business
from offices in the Law Building,
under
the
firm
name
Southern Region.
of
Amibec-
Volume
191
Number
5964
;
•*
.
(2821)
The Commercial and Financial Chronicle
.
»»•«.
•
♦ «•
U
+■>*>**.
>• «f.
I.,
J
.
I
»
,in'
I
.
.►
|
t
)
t
i
tt
t
►
»'
_
if' »'
Announcing the formation of
as
a
division of Carrier Corporation
and the election of the
CHARLES V FENN
; Carrier Air
•
following
as
Executive Vice Presidents of the Corporation
RUSSELL GRAY
•
MELVIN C. HOLM
•
WALTER STEITLER
conducted by the
Corporation. Russell Gray has
division, with Leon Hutton as Executive Vice President.
Conditioning Company will be responsible for the businesses now
Machinery and Systems and Unitary Equipment divisions of the
been
designated President of this
new
Lyle C. Harvey, Senior Vice President, will continue to direct the Bryant,
divisions,
as
well
as
Certain staff groups
of the Corporation will be under the direction of Charles V Fenn,
Vice President, who has also been
Melvin C. Holm, as
Executive Vice President, will serve as Chairman of the Planning Committee
chief financial officer of the
He will also continue in his present capacity
Following
are
as
Executive Vice President.
Co. will be directed by '<
/
the constituent operating groups of Carrier Corporation and the officers in charge:
Samuel Shawhan, President
BRYANT MANUFACTURING COMPANY
CARRIER AIR CONDITIONING
COMPANY
;.. Russell Gray, President
...
CARRIER AIR CONDITIONING LTD.
Edward F. Pope, President
CARRIER-HOUSTON CORPORATION
■
'
the
Corporation.
operations of Elliott Company and Carrier Research and Development
Walter Steitler,
Executive
named Assistant to the President.
and Assistant to the Chairman of the Board.
The
Day & Night and Payne *
Spectrol Electronics Corporation and Frostmaster Company.
William C. Egan, President
CARRIER INTERNATIONAL LTD.
John M. Rachal, President 1
CARRIER RESEARCH AND
DEVELOPMENT CO.
DAY & NIGHT MANUFACTURING
COMPANY
.....
Dr.J.EDownieSmith, President
William J. Bailey, President
George Lilycren, President
ELLIOTT COMPANY
FROSTMASTER COMPANY
THE PAYNE COMPANY
.....
William J. Bailey, President
...
SPECTROL ELECTRONICS CORPORATION
I E R
Loren Fletcher, President
....
Keith Ryan, President
.
»'
21
22
(2822)
The
Chronicle
Commercial and Financial
i-
•
,
.
.
that corporations would
depreciation reform long
ere
this
if
only
the
13,000,000
stockholders
and the 66,000,000
h o 1 d i n g. Dispositions
during the period included AllisChalmers,
Babcock
&
Wilcox '
Detroit Edison, Eastman
company
guess
Dr.
Kennard
MUTUAL
Morganstern, Presi¬
dent and
Chairman of the Board
Radiation Dynamics, Inc.,
of
Westbury, L.
a n n o u n
the
I.,
New
York,
Paul
F.
as
rector
Carolina
mutual
heavily
to
This
of
he
is
Chase
tribution
in
investment
Dr. Paul F. Genachte
years
public
fund
,
utilities
United
work
States
Genachte
was
Belgium,
July
his
versity;
in
Bel¬
B.
sachusetts
citizen,
born
9,
S.
in
at
He
Brussels
his
M.
re¬
Uni¬
S.
in
Engineering from Mas¬
Institute of
Technology,
and his Ph. D. from California In¬
of Technology.
Genachte
is
Director
a
of
Firth
Sterling, Inc., Homestake
Mining Company, and of Nuclear
and Engineering Corpo¬
ration; Chairman of the Nuclear
Industry Committee of the In¬
Science
vestment
Bankers Association,
Vice-Chairman
of
the
Nuclear
Committee
Association
of
the
of
Na¬
Manufac¬
assets
.
«,
,
Dr. Genachte repre¬
the International Chamber
of Commerce at the
organizational
of
the
SdWiduS
Conference
held
in
Vienna
in 1957 and 1358.
Also, as a dele¬
gate of the International Chamber
Commerce,
the
he
Nations
in
ergy
1955
Geneva
and again
attended
Conferences
Peaceful Uses
of
the
have
t>een
-n
t
yet
Atomic
in
the
on
En¬
September,
in 1958.
a
engage in a
Gribble,
secu¬
about
half
its
President;
Harry
Jack I.
Secretary-Treasurer;
and
Shepherd and I. M. Gribble,
Vice-Presidents.
power.
.
.
sense
he
omy,
this
says
tually result in
"should
of
many
ment
role
leaders
have
"Cheap
If inflation
be
were
the
a
noted:
the
jection
j
I
in
their
of
$100
a
indicate that
greater rate
a
a"set value 6per share
.outstanding
.
most
Robert I. Cummin
Edmund A. Mennis
<
r.;,
.
manager
It wouM
°* mon^y. rJgh
s
,,
pro-
take
that
asset
*
$7 48
the
the
17
'
< /
;
United
amounted
fo¬
$7.76 per share,*
$105,288,517
or.
or
with
share
a
r^e- cjose 0f
C
of
*
vaiue
$109,195,427
compared
kind
,
*
•
• ••• •, *
Corp. as-of June
mutual
v
On Feb. 29, assets totaled
* / •;•->
March
on
fiscal
31>
the
John
William
year,
wanted
winner,
housewife,
pensioner,
manager of commerce and
vestor.
Admittedly,
the in-
shrewd
have
served
in-
until
inflation offset.
an
But
lay
if
relative few alone manage
the ravages of inflation,
a
escape
the
stock
rewards
prices
can
from
be
doubled
lean
under
current
allowances that do mated
n°t take into account the inflation share.
•
.
•
°ur investment leaders, .fulfill-
at
bring home to the millions
serve
as
stimulate
of
vou
you
rin
do
can
can
If
tn
to
keen
keep
al-
the
mdus-
in
m
to
samf
the
the
same
this
tnis
ended
where else, you must
twice as fast as that."
"Our disappearing
get
run
Meanwhile,
some-
at least
plants
with
.
wucxuuy
our
are
them
uu-
duces
way
the
situation
increasingly
volume
abroad
often
mestie
of
compete
forcing
the
plants.
to
They've
a
of 1959 would not be
Dec. 31.
on
products
with
closing
And
^taiu
in
'
-
t
*•
<
_
*
fSupervised
taxes
tjvun-
■
of
do-
preferred
overseas
our
depreciation allowances. It's
methods
of
liberalizing
a
fair
T,
/
.
-
„
A mutual fund investing in
anced
Company
between
selected
current income.
for
selected
A prospectus on each fund is available
invests
in
bonds and
stability,
for
common
T
..
®
_
—
.
Edpres-
has
heen
with
for
i n
Funds'
chemical
in-
oil
and
and is President cf The
Jr,*
-n
J«
a
Y?rk" 8
Group o
Group of New York.
New
as
analyst for
leading life insurance
a
-•
^
..
company
^
Ll-S
Atlanta
Los
in
perS
This
$4.38
as
compared
1959, value
of
with
a
Call
Corp.
company
cor?r^orl„st9_ck of Mc~
and
F, W\ Woolworth
It eliminated the
common stock of
and10staunerUch^
*
Financial
*
ended
of
that
May
Fund
during
31
ways
it
of
the
adHpd
Express^
Mr.
ixr
n
industrial pension
an
York stock Exchange
mem-
ber firm.
M
Menni
{
wi
Director
of
Re-
ment Company. He has been a
security analyst since 1945, and
^Yith the Wellington organization
s*nce 1950. His present duties inelude the supervision of general
economic
research,
and
mvest-
ments in the steel and automobile
;
^
4.
•
lndustriesIncome Growth Council
N.
Y.
—
Income
Growth Council Inc. is conducting
a
securities
business
from
orfices
secunilcs Dusiness from o nces
at
Kin^on Avenue. Officers
Service are stanley S. Merritt, President;
Gas. Consolidated Alfred J. Rivera and Robert L.
^represented a new Horowitz, Vice-Presidents.
glee trie &
reig
of
BROOKLYN,
Industrial
reports
+u
with WellingCummin was
coming
1958,
served as manaSer of investment research for a
Brands
*
American
Firstamerica and Public
Angeles
the
$4.39.
the
•
to
manager
equal to
s$hares outsfanLg
+
in
fund> and has also
TP-~ New
Pai d
J
?fnn ^
sharqs
Lord, Akiji;tt & Co.
Prior
ton
asset^ w?re^5 OlR^Q May, net
Denver
request
nancial Analysts of Philadelphia.
•
.
nlfmL ir/u
quarter
—
Birmingham
nominal
th?ranSoi J^iTVn
adiust^ntfnr ?h?9Q 1.?
-T
stocks
possibilities.
upon
from your investment dealer.
Chicago
Hnrincr
the value of
to
a
portfolio
bal¬
preferred stocks
and
growth
Prospectus
New York
_
and
are
WenSeton Organization
t^k
nast
vestments
ff
S1X mo"ths
deCr'e nf nn^Jn^°UuCed -a
Nov. 30,
A Balanced Investment Fund
q list of securities selected for
All
siblePfor they security anafysfs o'f
alu-
value, together^ with the 29-cent
capital-gains distribution, is
equal
Business Shares
The
Mr
the
American Business
Inc..
3 Shares, "*■"»
During the period
Income Fund
Cummin,
Mennis.
Mr. Crysier served
,
Bir-
Committee of the Company,
Shares, Inc. reports
.
M.
ently members of the Investment
*
-d
A.
I.
on
S.
American
Incorporated
mund
says compe- the
^nexlT several yeaT
Robert
personal
give the economy a lift.
The Treasury is about to
ask
some
9,000 investors to indicate
own,
capital and income.
jjiu-
Jr.,
en-•
thp
and
Research
John
are
mingham,, Jr., Edwin W. Crysier,
*
steel
Investment
new
am&s in Reynolds Metals and pervision of the bonds and preincome. 5
JoseP" Light & Power were ferred stocks held by Wellington
Every American—not least the in- aecrease(L
T""~J
* *
*
"
Fund. TT~ is President of ■L1-- Tt1i
He
the Ficents
to
a
made
our
m.w
:
The
Vice-Presidents
u.
*
irinum is likelv to inrreasp
of.
annually the past five years and a
sharp rise is counted on right now
m-
seen
m
a
stake in plans of
companies to keep facilities
competitive.
These expenditures
have, averaged over $28
billion
to explain why they've
turning
25
cents
month1^ P^-
A«d
soundness
5.3
have
}f4catlon.between
Perspective,
vestor—has
fully
It, goes
the
iw
about
corporate ..and
U.
of
disappearing.
go
uunai
are
invested
>
secu-
tition
.
investments, job opportunities ond
high-level prosperity, all of which
buy replacement machinSurveys show that about one-
to
collars
Vice-President — InvestResearch, according to A.
Moyer Kulp, Senior Vice-President. The company and its affili-
a^es? are investment advisers and
na^ona* distributors of Welling^on Fund and Wellington Equity
a"^undu
the sale of
on
*
anoroach
approacn.
very
very
of
Plent
Comparisons with the like
trial development. Countries which
<
want
you
Crysier, Jr.
esti-.
profits
Alice-perit/lthtourTje'lft™ Pus°ed
place.
w.
.
t10n
tirely accurate, Mr. Hickey said,
because the company in the meantime changed its fiscal
year
to
one
ending on March 31 from one
trustees
depreciation
be used by
lowances could
Government to
is
year,
addition,
been realized
rities.
of pso-
fiscal
$745,000
In
inS the educative role, might well quarter
Ple whom they
to that liberalized
Even
the
depreciatioin
factor.
Birmingham, Ji Edwin
•
of.
nance capital investment through
now
we
possible long-term growth of
The
report.
shrs w?e va,luet,at
at the quarter-end. When
$329,561,378.
reasonable
a
£00 Berkeley Street, Boston, Mass.
total
'dSS
May 31,according,
on
fundus quarterly
to the
superior 357,459.
billion
is
list of securities selected for
THE PARKER CORPORATION
of
*,:»
»
were dissir
VTiesenberger
industry
enough.
its hands into the
purse of bread-
record
,i
"Mr.
fund
it would
man,
10
vestments abroad
investing in
appointment
investment
management division to the posi-
reports
P^ace obsolete plants.. Hickey,
President, told the ancriminals in the land. But being -.companies shomdn tLave
-fe rtuali, meeting of stockholders in
an
economic force, whose plun- P8nd on sale of additional stock,
Wilmington, Del. Mr. Hickey said
dering proclivities are no less real,- retained earnings or .-borrpwihg that net investment
income of the
its arrest is no less urgent. For it *or their plant-modernization procompany for the three months to
is no respecter of
persons as it digs grams..But it is impossible to fi-^ end June
30, the first, quarter
of
one
been
r
labor'
plant a°d technology,
educative
an
play in safeguarding
community against inflation.
long
A mutual fund
adviser
Inc.,
industry
grow at
will
years $i4.64
pating these assets.. ;
his
As one mutual fund
obsolete.
EST.1925
spon-
»
•
n4—.
1
than industry in general.
merely
in
even-
to
aware
'/
aside
stocks."
common
Our investment leaders
■■
brushed
pur-
of the productive
plant and
equipment of the United States is
Incorporated
Inc.,
nation
a
third
Investors
field
little trou
trou-
,
history may confirm
judgment, the responsible invest-
ery.
*
the
that research expenditures in the
chemical
The answer is to be found in
doubling in the
a
depreciation account
11
anonunced
History shows
.
lone-term
a
A *■ v/OILAL/IILO
■
able
:VL
has
since World War II, often , with adjusted for a capital-gam distrithe helP of the very American bution of 36 cents per share paid
once
embarked on a program of taxpayers who are feeling current iast
December, the share value
inflation
must
ecocompetition so keenly. Europe was at $15, compared with $14.14
politically
nomically and financially follow and Japan, devastated by. war^ a year ag0. Three months earlier,
it to some kind of bitter end. Rea- have
emerged with bright new on Feb. 29, the net asset, \ alue
sons 3T6 lacking for
believing this P^nts and. technology. And while ^ per share was $13.38.
J
generation will do better than the aB ^his was happening Americans,
The total net assets increased
last." Coupling denigration of the supremely confident that they had
by 32% in the 12-month period to
dollar with an
expanding econ- ^he equalizer in a contest with May 31 to $362,000,042 from $273,chasing
that in
dollars," is
the capsule
commentary of one
industrialist, who
inflationary spiral
MUTUAL FUND
Group,
Securities,
Qr0up
by y s standards,
by U. S. standards
was
v AV-^
Wellington Management Company
,
investment
and
sor
But
"f "Ch?hP
^ What md
change the sltuatl0n?
13 000 000
of
u
of four members of its
are
B. A.
<
be
not
can
wfessenberser
As Mr
ourselves open to all manner of
economic, political, and social ills
Shep¬
herd and
Company has been
formed with offices in the Denver
Club Building to
Shepherd,
factor.
and
Massachusetts Investors Growth
has been
course,
stocks —bv
lost
vestments
Colo.—Gribble,
Officers
one-
as
Americans
.
Gribble, Shepherd
T.
of
year ag0.
Gas
\/lPP-r Y*PcnflPTl1~Q
•
Distributors
.
4yS"'f1 ?,tr'jcturfbf"nd;s
altered drasticaUy
the
dollar
as
rities business.
little
as
fndustry
industry
our
'
denying; that
sizable
Jiex' iwu been m paid
consider- been m paid
a
- >
Europe and the Far East have
ine
the next two
.
DENVER,
get
than
.
no
wages
a
is.
throughout this century, workers
modest consider.-
Americans
International
Atomic Energy Agency held at the
United Nations Headquarters in
New York, and also at the Gen¬
United
tenth
still
;•
_
1956,
eral
workers who
under-
is
and
-
v.
there's
And
SiSK cKnegndsVeand
price
meetings
"Cheap labor."
C<?hZ
the
of
While
Affairs
Committee
of the Atomic Industrial Forum.
In
of
was
thanThaff billton?
Inflation, of
International
sented
Americans
none. While tne
over
on
less
turers, and Vice-Chairman of the
.1'
growth
community
■
Dr.
stitute
;
tne
,
Brussels,
1909.
obtained
Electrical
H:
expectation
decades appears modest
were
Energy
$100-bil-
projections, the sixfold ..expansion
of
gium and Mexico.
tional
$16-billion
a
&
Wellington NaiTlP^
®
pushed out of the market rphe 519174 shares outstanding on
altogether by foreign manufac- June
were up 3.3%
from two
tures.
A
common
reaction
of
weeks earlier and 38.6%
higher
o
1954
20
Dr.
lively
funds^ is second to
Man¬
Bank,
ceived
the
frequently, have
products
own
Fund's sales of shares in
^e first half of June set a record.
Energy
^
been
on
the next 20 years
in
to
joined the
A
public
En¬
ergy of the
after
turn
hon Colossus
President and
bank
of .the
benefits is counted
mutual fund field into
Vice-
hattan
A1
"Get-togetherness"
for
Gen¬
Atomic
Electric
Western Union'
The Funds Report
The Educative Role
the
Director
the
~~
Di¬
a
Kodak,'
,
of our corporations Georgia-Pacific, Idaho Power, Eli
terrible urgency. Lilly, Merck, Chas. Pfizer, South
employees
Dr.
of
Dr.
of
RICH
understood
Gen¬
achte,
I*'
E.
has
Corporation.
j '
ROBERT
ced
of
achte
.
have had
appoint¬
ment
in
FUNDS
—
BY
Thursday, June 30, 1960
.
'
Volume
191
Number 5964
.
.
.
The Commercial and Financial Chronicle
<(2823)
The
book itself. (The theory of Linear
Economic Models—350 pages, 25
Security
illustrations—$9.50
I Like Best
Continued
from
complish
the
anything
direction
sion
of corporate
will
it
have
expan¬
be
to
in
done
with
offices
Boulevard
at
to
ties business.
141
West
engage-in
Officers
A
are
recently
organized a hew
called
"Bangor
&
corporation
Aroostook Corporation." It is pro¬
Marvin
posed ; that eventually the new
corporation will offer to railroad
stockholders
two
stock
common
shares
its
exchange
in
of
for
each share of railroad stock held.
The
the stock of the
own
the
will. then
corporation
new
railroad and
present stockholders will
the stock of the
Stock
of
listed
on
the
with
in
a
W.
is
sole
price of $3
June 29 by
by the
wholesale
to
jobbers
ment
for
are
in¬
automotive
parts.
lines
to
pur¬
proceeds will
Among the
by the
distributed
exhaust
,
replace¬
product
company
systems, ignition
sys¬
sys¬
Forms Hiner & Co.
WASHINGTON, D. C.—Donald M.
Hiner
is
engaging in
business
from
of
Hiner
B, &
hopes that
A.
that
so
change
the
offer
was
three
of
the
months
company
ended
for
of
31,
aggregated $570,506. For the
year
1959 sales were $2,533,274.
Upon completion of the current
George O'Neill Branch
.
financing, outstanding capitaliza¬
tion of the company will i consist
of $38,933 of sundry debt; 182,000
shares of class A common stock,
Motor
FT.
LAUDERDALE, Fla.—George,
O'Neill
&
branch
office
land
Co., Inc. has opened
Park
direction
at
Richard
be
made around Labor Day.
nnouncing.
■
■
$1,165,000 and the financial posi¬
tion
is
largely liquid.
Such
a
suggests that
sharp cash buildup
the
B.
action
when
structure
I
will
A.
&
do
is
the
ready
know
lV
.
precisely
which
in
for
corporate
new
approved.
not
direction
be
the
diversification
plans will move, but some kind of
operations seem probable.
timber
B. & A. already owns 67,789 com¬
(a
of
shares
mon
Maine-
value
market
St
IS
Croix
Paper
having
a
company),
$2,000,000 and
over
which dividends totaling $1.25
on
Curtis
share
were
paid
in .1959.
Hutchins, former President
of
&
per
B.
Croix
St.
Although
the
present
-earnings which
Franklin
National Bank of Long Island, ,
we
estimate
t
Published by The
of
President
now
Paper,
at
cannot
is
A.
tJ1-,
%
be achieved
may
through corporate expansion, we
be confident that the changes
VOL.
may-JUNE I960
h
.
P.O.
BOX 47,
FRANKLIN
SQUARE, N.Y.
NO. 1
1/
may
being undertaken by management
will
broaden
the
earnings base
and
onen
new
of
areas
profit
potential.
ditions
in Nassau
and butto
bi.„»<Wy.ndl™e
Linear Economic
»
Models Theory
1 U* «-
The Theory of Linear Economic
Models, by David Gale, recently
published by McGraw-Hill Book
Co., Inc., presents a complete, rig-
the
unified
and
porous,
theory
of
mathematical
of
linear
the
on
equations
-'
in
book
252 Sp*
ine¬
and
linear
covers
pro¬
gramming; the theory of two-per¬
son
games;
static and dynamic
theory of linear exchange models
including problems of equilibrium
prices and .dynamic, stability;
methods of play, optimal strate¬
gies,' and
solutions
of
matrix'
games: and much more. ' The in¬
formation
is a
ready source of
reference
individuals
for
J- £*
proper¬
qualities.
The
in
t
i
'
<
'555;,
mathematical
*—
<
National Bank
The
OF
long
the
TEDEAAL
fields of applied mathematics, en¬
gineering,
^
^
^
.He
One o,
which
economics
depend essentially
ties
topics
*"• - * el"Ce'
reading on the Long Island economy.
.
of
treatment
those
island,
DEPOSIT
new york
,NUANCE
CONATION
econom¬
industrial
ics,
administration, op¬
research, management
science, and other areas.
erations
In
the
models
trated
based
into
the
book
fully.
on
linear. economic
described
are
>
The
mathematical
are
as
a
chapters
on
linear
type
i
•
i
<
-
»
and
a
'
'
-
All the mathematics needed
a
complete
ear
is
models
developed
and
-
Square,
N. Y.
'
me on
your
mailing list to receive
bi-monthly free.
Letter"
on
"The
Franklin
its way to you.
ADDRESS.
*
for
matrix
within
Franklin
NAME.
start
j
CITY.
——
games
47
MAIL THIS COUPON, today
to
understanding of lin¬
economic
I-
Box
The Franklin Letter
theory of flow in networks.
i
-I
P. O.
the
special
treatment of the important class
of integral linear programs based
the
LETTER
•
are
are
exchange
models, and
V-r
Put
and
mathematical theorems.
boov of this
production
on
FRANKLIN
translated
relations,
properties of each model
New to
THE
assumptions
the models
derived
r'
illus¬
and
the
.ZONE.
,STATE.
2831
Boulevard
of
ex¬
Since
December
30, 1959 net
working capital has increased by
name
the
March
pre¬
can
1757K
Company, Mr. Hiner
previously with Sutro Bros.
cleared
stockholders
to
at
&
the New York Stock Ex¬
change.
securities
a
offices
Street, N. W. under the firm
corporation.
will be
new
&
Frank
and
1960
Products, Inc., orig¬
inally organized as a partnership
in 1932, was incorporated under
Ohio law and adopted its present
'
offering
Ferman
& Co.
Sales
company's gen¬
as required
for working capital and other cor¬
porate purposes.
>
■
i
Lee
L.
*
the
to
of the
Robert
are:
co.,
Roman
&
Johnson,
Karasik & Co., Inc.
tems.
balance of the
eral funds and utilized
pro¬
group
tems and engine components, sus¬
and to finance expansion
physical* warehouse facilities.
added
•••'••
Other members
turn service
the requirements of ultimate con¬
financing
existing
levels
value; and 300,000 shares
B common stock, $1 par
*
distributors, who in
sumers
company
of product lines at
range
of
securities business.
Grocoff
used
com¬
pension systems, and braking
The
N. Y.—Lloyd Secu¬
prietor.
a
on
an
distribu¬
poses,
Bear, Stearns & Co.
at 93-24 Queens Boulevard td en¬
gage
at
made
bank
loans
curred for general corporate
rities has been formed with offices
Bruce
be
repay
Lloyd Securities
REGO PARK,
stock
was
Net proceeds from the
will
be
Form
warehouse
as
corporation
liminaries will have been
away
own
was
share
wide
a
Incorporated and associates.
Alexander Kleine & Co. Mr.:Lind¬
ner
principally
ponents. The company distributes
Godfrey, Hamilton, Magnus & Co.,
a corpora¬
been
offering of
common
per
securi¬
Greenberg, President and Treas¬
tion which is not a carrier but urer; Sigmund H. Lindner, Vicepresident; and Richard H. Levin,
a
regular business- corporation.
Secretary. Mr. Greenberg was for¬
To serve this purpose there has
merly with H. Hentz & Co. and
through the medium of
class
independent
167,000 shares
of Lee Motor Products, Inc. class
Jackson
a
par
of
value.
engaged
tor of functional automotive
Public
CHICAGO, 111.—Investment Fund¬
ing Corporation has been formed
significant
$1
been
Stock Offered
Form Investment Funding
2
page
copy.)
per
in February, 1955. Since its
organization,
the
company
has
name
Lee Motor Prod.
23
East
under
L.
a
Oak¬
the
Margraf.
h
M,
11
,
'
I
o
Q
O
Q
9
p
3
3
p
3
o
C
o
3
VI
C
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nT
o
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os
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to
to
to
mum
t-_
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Ji|
\®
S
jjl
4J-L.
IMU I|M.
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/1
Stc¬Treasu$1,0 inorthef1982,admpi.ysthnbo Californdepst fCodre)witThplg1958,an Extrodiyhe puncalmbso
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inatseemnr-adsulBABuoihplinddydentbslg),Catlihofaoarfneicn,yYYN.Ftoihorruskp.et, '■ BomnoadfnttuserdirgF(I1eb9bpru8,uoia,yidnthteearrtsenfthoeodpmpitionndtaeraytmefn,oosdhtmicfpftieolndasoreataiedfc,bbotnshheddoeusldmy, intoecppoarinuyfsbll, btothhnemwdseislfooastatnhvireendgsr
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inmaturing
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amortized
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MATUNRIDES
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in
Vetrans' ponart, acrued subject inter st Publicaton to thofe
-
■
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_
$25,0 0
4a%nd Bonds,Seri
any
I960 i1n96c2-l8.,
343''//2A2%%%,, SBAcuhilodnlgWS1See9cro5in8sd,,
State
5%,
ade)
are
MDaIatre,cdh: SI,ept.
Due:
of
Law
5%,
or
Yield Price
beli ve certain
-V; the
all
and
In
2.50% 2.75% 2.90% 3.05% 3.15% 3.25% 3.35%
5
5
5
/:
5
100
the
purose
3.55% 3.65% 3.70% 100
■;
100
1971 1972 1973 1974 1975 1976
-
5
3/2
5-4'/2 5-31/2
31/2
.
3/2
3%
State Ses ion
for the
1968§ 19691 1970
1962 1963 1964 1965 1966 1967
5%
3.45-3.40% 3.45%
"•
Due
Coupon Rate -
Vetrans' Vet rans Vetrans'
We
,
ibnteores
of of the
opinon teormust payment at
and
3.80% 3.85% 3.90% 3.90% 3.95% 100
197 -
100
* ;
1978 1979 1980 "1981 1982 1983
33/4
33/4 33/4 33/4 33/4
33/4
•
4
4
33/4 4
*
:
■
-
(Ac rued
$25,0 0 SBcohnodsl 80 , 0 80 ,0 0 80 ,0 0 80 ,0 0 80 ,0 0 90 .0 0 90 , 0 90 ,0 0 90 ,0 0 90 ,0 0 1,0 ,0 1,0 ,0 1,0 ,0 1,0 ,0 1,0 ,0 1, 0 , 0 1, 0 , 0 1, 0 , 0 1, 0 , 0 0 ,0 0 1,20 , 0 $ ,20 $
T.I
1
$
"
4a%nd incl.
ARMAOTUNETSS,,
4Vz%,
IS UES,
prior
$50, /0
33'%/2%,
5%,
Bonds SYeris I960 FI,19e62b-8., $50, 0 VeBtranso'nds $1,30,0 1,30,0 1,30,0 1,50,0 1.-50,0 1,50,0 1,60,0 1,60,0 C00 1,70,0 1,70,0 1,70,0 2,0 ,0 2,0 ,0 2,0 ,0 2,30,0 2,30,0 2,30,0 12,50,0 2,'50,0 2,50 * 2,80 *
Vetrans' 19of58, DaJIute,dl:y
Act
Due:
1,600,
-1758.
4.
er
Volume
191
Number 5964
.
.
.A
Supplement to The Commercial and Financial Chronicle
Thursday, June 30, 1960
The Investment Association of New York
W.
Mayo-Smith, Blair <ft Co., Incorporated
(1959
President
of
Association); Edwin L. Beck, Commercial & Financial Chronicle;
Burns, III, Blyth & Co., Inc. (1960 President of Association)
Ralph
D+
DeNunzio,
Jim
L.
Mayo Brodie, Blyth
<ft
Co., Inc.; Maitland
T. Ijams,
W. C.
Langley &
Kidder, Peabody &
Morgan Stanley &
Co.;
Harold
Co.
John
E.
Friday,
Jr.,
Barry Merrill, Merrill Turben & Co., Cleve.; John L. Montgomery, Jr.,
Co.
Smith, Barney &
Smith, Barney
Co.;
Sidney Scott, Jr.,
Co. (Philadelphia)
Aken, Kuhnf,L6eb& Co.; John Toolan, Hornblowet & Weeks; Ted Marache, Hirsch & Co.
if
Peter
P.
Wiley, Merrill Lynch, Pierce, Fenner & Sniith, Incorporated; Richard E. Boesel, Jr., Kuhn,
Loeb & Co.; Scott Crabtree, Equitable Securities Corporation;
J. Wright Rumbough, Hoppin Bros. & Co.
Arthur
Treman,
Jr.,
Dillon,
Read
&
Co.,
Inc.; Charles
Symington,
Henry Clifford, White, Weld & Co.
G.
H.
Walker
&
Co.;
Lewis
J.
Kaufman,
Goldman,
Sachs
Jack
Vincent
C.
Banker, R.
W. Pressprich
D.
B., Tansill,
& Co.; William G. Gallagher,
Sbeperd, Goldman, Sachs & Co.
Vance,
Sanders
&
Co.;
& Co.; Brownlee Currey, Jr., Equitable Securities Corporation;
Eastman Dillon, Union Securities & Co.
|
Volume
Thursday, June 30, 1960
;;
191
Number 5964
tnemelppuSA..'
to The Commercial
.
and Financial Chronicle
Annual Summer Outing
'
■t
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1.
tV.-t:
,1
.
.
,
i-''.
if
Garet Penhale, Grace National Bank; Dick Broome, Reynolds A
Chuck Zimmerman, Goldman, Sachs A Co.
i
Co.;
Bob Dewar, Eastman Dillon, Union Securities A Co.; Otis
Spencer Trash & Co.; Mack Harris, first 5oat/iu>«$t Company
James
Bradley,
(Dallas)
F. Burns, III, Blyth A Co., Inc.; Joe Kirkwood,
Trick Shot Golf Artist
i'
!
i
11:
I:
K
I
4'
J
.
Duer
McLanahan,
John
If ."'I
C.
Karrenbrock,
Arthur
C.
Haven A Townsend, Crouter A
Archie F. MacAUaster,
Rennie
Springborn,
Glore, Forgan A Co.; Eugene L. Oakes, Allen A Company; Dick
Blyth A Co., Inc.; Thomas W. Folger, Kidder, Peabody A Co.
Burns, Dominick A Dominick; John L. Kelsey, Eastman Dillon,
William H. Black, Morgan Stanley A Co.
Union
Securities
A
Co.
■f
't
Straton, Jr., James H. Oliphant A Co.; Robert J. Chittick, De
Bodine;
Herbert
W.
Marache,
Jr.,
W.
Granbery,
C. Pitfield
Marache
A
A
Co.;
B.ar,St.arn.
Stearns
A
4
Co.;
Co .;
Dick
Paul
Weis.man, Bear, Stearns dt Co.;
Dowling, J. R. Willis ton A Beane
Bill
Dumke,
I
Co., Inc.
'iT 1
A i '
J *
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?
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Paul
4j
Volgt,
W. H. Morton A Co.; Walter O'Brian, F. S. Smithers
John Hughes, Lee Higginson Corporation
A Co.;
Paul
A.
Callahan, Hall. £SUeglUx, Gene
McDonald, Peter P. McD.rmott
Martin
Horner, Glore, Forgan A Co.
£
Co.;
Bear
Volume
191
Number 5964
.
.
.A
Supplement to The Commercial and Financial Chronicle
Thursday, June 30, 1960
*
June 17,1960
C. H. Maspero, R. D. White A Co.; B. H.
Dave
Young, Kuhn, Loeb & Co.
McMillan, Spencer Trash A Co.
Walter
Scott, Clore, Forgan A Co.; Joe Callahan, Blyth A Co., Inc.
George B. Fargis, Eastman Dillon, Union Securities A Co.
Andrew M. Blum, Van Alstyne, Noel A Co.
\
Walter
James
Smith,
J.
B.
Schubert, Carlisle & Jacquelin; William Gregory III,
William Shanks, The Bond Buyer
Gregory &
Sons;
»
M.
Fox, Jr., W. E. Burnet A Co.; N. Hadley Heindel, Jr., Merrill Lynch, Pierce, Fenner A
Incorporated; James C. Morrison, Jr., Shearson, Hammill A Co.; Harry D. Nelson, Jr.,
Merrill Lynch, Pierce, Fenner A Smith, Incorporated
G. Ward, Salomon Bros. A
Allen A Company;
Hutzler; T. H. Irwin, L. A. Mathey A Co.; Donald Newman,
Chuck Youngblood, Auchincloss, Parker A Redpath
George Sabo, Jr., Dick
Robert
A
Merle-Smith; Tom Lewis, Clark, Dodge A Co.; John
Jacquelin; Glenn Hartranft, Clark, Dodge A Co.
Hughes,
Carlisle
Trane, Merrill Lynch, Pierce, Fenner A Smith, Incorporated; Dean Woodman, Merrill
Pierce, Fenner A Smith, Incorporated; Bruce McBratney, Wood, Struthers A Co.;
Tom Chrystie, Merrill Lynch, Pierce, Fenner A Smith, Incorporated
Allan
A
Lynch,
Bogardus, Watling, Lerchen A Co.; Donal McDonnell, McDonnell A Co. Incorporated;
Joseph A. Lee, Reynolds A Co.
"fcJkMfliw-
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Volume
Thursday, June 30, 1960
At
191
Number 5964
.
.
.A Supplement to The
Commercial and Financial Chronicle
Sleepy Hollow Country Club
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Hammill & Co.; Alden L. West, Sutro Bros. & Co.
Peterkin,
John Richardson, Bache & Co.; Charles Rendigs, Bache
K. Philip Dresdner, J. R. Williston & Beane
Peter A. Hager, Goldman, Sachs & Co.; George A. Bentley III, Ftrst
Boston Corporation; Howard Finney, III, Eastman Dillon,
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& Smith Incorporated
R. B.
Gibson, Blyth & Co., Inc.; J. W. Weeks, Blyth & Co., Inc.; Eugene F. Kelley,
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■
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Kean,
Wood,
S.
R.
Wil iam
•:
•
Robert Fahey,
S.
J.
Frantz
Russ&
June
26
(2826)
The Commercial and Financial Chronicle
Representative
is
Iowa
H.
BANK AND INSURANCE
STOCKS
of
about
vexed
This Week
MARINE
Noting that the grant for the
study came from the National Sci¬
ence Foundation shortly after the
Acquisition
voted
million
$160
Foundation
the
for
the
fiscal
year,
Representative Gross snapped:
"Is it too much to hope the day
will
come when some foundation,
richly endowed by Congress, will
make a study and record for pos¬
terity the anguished
taxpayers when they
their
is
money
of
sounds
how
read
frittered
being
1.
holding
away."
MIDLAND
of
banks
by Marine Midland Corp. will
again be possible when the change in New York State's banking
law takes effect
July 1, 1960. Management plans to
on
talks
reopen
with several banks in the State which in the past have indicated
interest in joining the system.
The new act lifts the freeze on
bank holding company growth, in effect since early 1957, and puts
bank
While formation of new bank holding companies will be al¬
lowed, such formations by the big New York City banks presently
is not expected due to such factors as the higher income taxes for
holding companies (54%) and the existing opportunities for ex¬
pansion in nearby populous territories. The new act allows New
York City banks to expand into nearby Westchester and Nassau
Gross's lament and concludes that
deposits of some $46 million. Plans to merge the Auburn Trust
Company into the Marine Midland Trust Co. of Central New York,
Syracuse, two existing units in the holding company family of
banks, have been announced. Marine Midland has offered to ex¬
far too much of
tax money
is
projects "strictly for the
on
our
birds."
H. L.
Wright & Co.
Opens in N. Y. City
H. L. Wright & Co., Incorporated,
has formally opened at 99 Wall
Street, New York City.
firm's
directed
toward
the
business
nies and other
and operated
also
be
development
wholesale
insurance
with
bond
compa¬
institutions owned
by Negroes and will
in the retailing of
engage
select issues and the underwriting
securities.
of
its
In
tional Bank
of
Poughkeepsie, which has two branch offices and
change parent company stock for shares of its subsidiary banks
acquired by minority interests in these banks during the four-year
"freeze" period; the offer will expire July 22, unless extended.
Purchases in the four-year period were confined to seven
relatively
small banks with total assets of less than $50
million, which sub¬
sequently became branches of the existing Midland banks.
Marine Midland is in
will
operations
substantial
a
the
unique position of having the only
holding company network, a distinct advantage over
the other nine holding companies
presently operating in New York
State. Holding company banking has such
advantages as the re¬
tention of identity of local
banks, the ability to attract capital,
State-wide
benefits of effective cost control, retention of key
personnel, unifi¬
cation of direction and generally a more
practical
MARINE
the company plans to
major portion of its
in
spearheading private
efforts^
American
MIDLAND
CORP.
investments
in
under¬
V
The
staff
the
of
firm
is
Marine
Midland
West'n
Harry
Wright, President of
the company, has been engaged in
investment activities
six years,
of
and
the
firm.
managed
a
for
the
formerly
was
institutional
department of
Street
In
a
the
man¬
addition
he
was
he
a
has
New
member
fiscal
of¬
Agriculture and the Navy Depart¬
ment, research analyst with the
Department of Justice and
the New York State
partment,
with the Southern
cil
under
Banking De¬
relations
race
officer
Regional Coun¬
the
sponsorship of the
Fund, and
Comptroller of the United Negro
College Fund.
Julius
Rosenwald
March Financial Formed
WASHINGTON, D. C.—Marsh Fi¬
nancial Planning Associates, Inc.
has
been
1832 M
a
formed
with
offices
at
Street, N. W. to engage in
securities business. Officers
are
John D. Marsh, President; Robert
E. Guest, Vice-President; Jesse R.
Ingram, Secretary;
David L.
Mead and William G. Russell, As¬
sistant
Treasurers.
and
AH
N.
Y.
Rochester
of
603.9
C.
Aid
syndicate is
managed
by Bank of America,
with Bankers Trust Company acting as joint manager. Major members of the underwriting group' inThe
merged
elude The Chase Manhattan Bank
c"y B"k
have
been
Chautauqua
National
Manufacturers
Marine
of
MARINE
of
National
Rockland
MIDLAND
millions
of
Simmons, Rubin
18.9
99.6
11.1
11.1
9.5
6.5
82.9
banks
BROADWAY, NEW YORK S, N. Y.
Telephone: BArclay 7-3500
Bell
Teletype NY U124i-i»
Specialists in Batik Stocks
two
Net
the
price
cost
of
State
cost
3.8355%
School
100.036
was
interest
net
This compared with
on
was
the
to
and
3.926%.
Building
$25,000,000 of
Aid
4%
a
Bonds
yield
to
dollar price of
for
turity
Veterans
The
11.0
93.9
were
the
8.3
8.6
97.7
15.5
12.3
82.7
$300
million
i 75.6
50.8
159.0
36.0
53.5
34.3
27.2
7.7
14.5
Nyack
$2,101.1
20.2
10.4
10.6
$1,242.5
17.8%
is
some
next
175
branches
throughout
the
bariKs
the
to
in
New
Valley.
York
for approximately one-third of total
deposits. The bank's
Midland Courier Service for fast collection of checks in the
New
York State area is an important service.
The over-all loan portfolio in 1959 was distributed as
follows:
48% commercial, industrial and agricultural
loans, 31% individual
loans, 8% broker loans, and 13% for all other loans. Mortgages
approximately 22%
of
total
loans.
Individual
loans
through the Midland Time Plan departments are of relative im¬
portance. Early in 1959, several Marine Midland banks introduced
multi-purpose credit card plan—Midland Shopper Credit Service.
Over 4,000 merchants are
participating in the MSCS credit card
a
service.
SELECTED
PER
Operating
Divi-
Earns.
dends
SHARE
Averagi
P/E
STATISTICS
Book
%
Value
Earned
on
Book Value
$1.00
Price
Range
30
-
24
1.86
0.98
13.9
17.76
10.8%
30
24
1958-
1.70
0.98
12.4
16.93
10.2
25
18
1.70
0.91
10.8
16.39
10.6
20
18
1.58
0.86
11.4
15.78
10.1
20
17
1955
1.34
0.78
13.2
15.47
8.6
20
16
0.97
0.42
7.8
14.27
6.4
9
7
;
Approximately two-thirds of total operating income derives
on
loans
In
1959
the
average
rate of in¬
6.15%, compared with 5.86% in 1958. In 1960,
operating earnings were equal to 470 a share, up
was
first quarter net
from 450 the year before on fewer shares
estimate for the full year is at least
outstanding; the earnings
$2.00 a share. At the recent
3.7% yield is obtained on the $1.00 dividend rate.
Of the present 12 million authorized
shares, about 10 million
currently are outstanding, held by well over 30,000 stockholders.
A rights
offering of the stock occurred in May, 1959 and a 2y2%
price of 27,
of
added
general funds of the
com-
and will be advanced to its
subsidiaries
to
and
be
used
for
improvement
of
operations, and
working capital.
Glass
Fibers
Corp.,
Gowan
and
Manufacturing
operates
a
Wyndmoor
Co., Inc.,
Division,
Knitting
Mills,
Boat
Incj? w,ftich operates
vision.
a
Textile Di-
The company's Boat Divi-
sion is engaged in designing, loan¬
ufacturing
and
selling
line
a
of
fiberglass boats, with four basic
yodels having the same hull des*gn> and being called the "Babama, "Fish & Ski," "Runabout,
sold
a
ap-
"U
Drive"
and
count
$2.00''
sale
be
manufactured by the Boat Divis^on ar,e s°ld principally in the
areas of the Eastern seaboard. The
City and Buffalo are
sufficiently large to be directly active in international as well as
national banking. The 11 banks' total
deposits by the end of 1959
showed a gain of some 3% over 1958
figures. Time deposits ac¬
for
will
of the sale will be used to finance
purchase of homes and farms
by California veterans under a
program in operation since 1921;
-
models.
Boats
—^
Building Aid Bonds
part of
$220 million authee-
are
a
gaged in manufacturing and sell¬
ing an extensive line of children's
&ilTl960 t,Tere
Proceeds
of
the
bond
sales
k"lt£.d.
on
000,000
erans'
and
of
2US?
r
State
California
of
School
Upon completion of the current
■
,
nnJin3 otWt
and mittens, l ie
are als0 made b*
.fi §
.
the latter division.
members
major
Building
the
Vet-
financing,
ti°n
outstanding
John
Chicago;
Morgan Guaranty Trust Company
of New York; Halsey, Stuart & Co.,
Inc.; Blyth & Co., Inc.; The First
Boston
Corp.; Smith, Barney &
Co.; Harriman Ripley & Co., Inc.;
Lehman
Brothers; Harris Trust
and Savings Bank; Drexel &
Co.;
C.
J.
Devine
&
Co.; Chemical
New
York
Loeb
Trust
Company,
&
Co.; Goldman,
Co.; Continental Illinois
Bank & Trust Co.; The Northern
Trust Company; Glore, Forgan &
Co.; Lazard, Freres & Co.; Kidder,
Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Smith Incorporated; Dean Witter & Co.; Bear,
Sachs
common
stock,
Aid
were:
Kuhn,
capitaliza-
the company will consist
0f 340 910 shares of
Nuveen Co.
First National Bank of
Bank
^
hats^glOTM^nd31mittens ^MeS
are
loaned to local school districts
Other
k"»ted
™d
300,000 of the bonds outstanding.
Bonds
account
the
from
stock
the
65.1
and Marine Midland Trust Co. of the Mohawk
Midland's
proceeds
which
proved by voters in 1958. Proceeds
largest holding company
nationally, second only to Firstamerica Corp. Since member banks
of the holding company have been able to
buy additional banks
with their own shares or cash, two offices were
acquired through
mergers in 1959, one each by Northern New York Trust
Company
Marine
were
1958.
operating
Midland
The shares
beth, N. J., carries on its business
through two subsidiaries, Mc-
on
offering from
per
speculation.
a
McGowen
are
authorization
$2
97.2
35.1
12.7%
fourth
just
of
97.5
23.3
15.5
96.5
11.0
13.0
.
Bonds
Mccom¬
with its offices and plant in Eliza-
from
par
as
common
the
Building Aid Bonds
reoffered
an-
of
Corp.
price
a
their facilities and
sold in April, 1960.
Both the Veterans' and the State
School
at
expansion
net interest
a
the basis of needs.
State, Marine
terest
Exchange
pany
The
11.7
territory relative to other
Eastern commercial banks. The
region's industrial growth is being
enhanced by such developments as the St. Lawrence
Seaway, the
Niagara electric power expansion and the N. Y. State Thruway.
11
offered
State School Building
Bonds, paying a premium of
$9,101 for a combination of 5%,
41/2%, 3V2%, 3%% and 4% bonds,
dollar
shares
Fibers
the books closed.
$25,000,000
69.1
from interest income from loans.
Exchange
March, 1960.
purchased
Aid
91.4
7
♦Estimated.
Members New York Stock
in
150,000
Glass
stock
mon
Inc.
share has been oversubscribed and
also
syndicate
of
Co.,
&
June 28 that their of-
on
Gowen
Vet-
The School
With
fering
99.3
82.3
.
1949
Members American Stock
$50,000,000
Bonds sold
The
to
com-
ing Aid Bonds mature Sept. 1.
10.3
134.0
/Troy
tOver
the
nounced
interest cost of
net
a
on
cost
3.9534%. This
334.3
131.7
CORP
INSUR\NCE STOCKS
Laird, Bissell & Meeds
with
3.9524%
interest
net
was
Rubin
Simmons,
and the State School Build-
Marine Midland's operations are confined to New York State
but the bank serves a widely diversified
1956
Request
and
years,
by
Parent
1957
on
100.013,
the State
erans'
Sells McGowen
combina¬
5%, 3V2%, 3%% and 4%
The
dollar
price
was
bonds.
pared
a
$50,000,paying a
Bonds
1Owned
Earns.
1959
Bulletin
of
Bonds,
premium of $6,409 for
112.5
Troy__of
Cty.,
dollars.
I960
FIRE & CASUALTY
tion
bought
Veterans'
720.5
7' ;
Utica
Trust, Watertown
Year-
Comparison & Analysis
syndicate
000
98.8%
Loans
132.7
199.5
-
Valley,
Y.
associated with Rivier, Marsh and
Company, Incorporated.
120
Veterans' and School Building
16.2%
$392.5
N. Y., Elmira
Company
Mohawk
large Wall
Exchange
past
Trust,
Valley,
Northern N.
♦In
ficer with the U. S. Department of
S.
Trust
syndicate to purchase
$75,000,000
State
of
California
16.1%
$703.1
Buffalo
Y.,
Gain*
Percent
invest¬
branch office of
Stock
past
firm.
U.
28
Company
the
% Shares
Total
Loans*
Marine of Central N. Y., Syracuse
Marine
L.
N.
of Southern
Auburn Trust
interracial.
for
BANKS
1959—
,
Total
.
of
Marine
nations.
?
Marine
Genesee
countries, particularly
newly independent African
In
Bankers
a
tis; Mercantile Trust Company;
Shields & Company; Reynolds &
Co.; Ladenburg, Thalmann & Co.;
Crocker Anglo National Bank; J.
Barth & Co.; John Nuveen & Co.,
Incorporated; William R. Staats &
Co.; Hornblower & Weeks; Wertheim &lCo.; Hayden, Stone & Co.;
A. C. Allyn and Company, Incorporated; First Western Bank and
Trust Company, San Francisco,
un-
June
on
bonds, according to ma1962-1986. The Veterans1
mature
Feb. " T of ' tfi'dse
Deposits*
the
York
syndicate
with
merged
being
SUBSIDIARY
AND
—Dec. 31
^
developed
ment
derwriting
2.50%, to
underwriting%
the
devote
method
attaining the advantages of branch banking.
activities,
ager
A Bank of America NT & SA
Bonds.
holding companies under State regulation.
Although Marine Midland management has no immediate
plans to expand into Nassau and Westchester Counties, other steps
have been announced.
Recently the bank disclosed an offer to
exchange (5-for-l) its shares for the acquisition of the First Na¬
of
field.
company
$75 Million California Bonds Marketed
CORPORATION
additional
The
such
The
the New York Stock Exchange, Marine
an investment quality issue in the bank
on
Bank Stocks
—
anguished cry comes
from an organization representing
the taxpayers of New York State,
the
Citizens Public Expenditure
Survey.
The Survey echoes Mr.
spent
Listed
be considered
can
Counties.
One
The remaining con¬
paid in February, 1960.
was
preferred shares outstanding at year-end 1959 were called
early in 1960.
BURRINGTON
Thursday, June 30, 1960
.
:
of taxpayers."
had
BY LEO
.
a
$50,000 grant to Cornell University to study bird sounds. He feels
there's a need for a companion
study—of the "anguished sounds
House
vertible
Midland
Gross
R.
somewhat
dividend
stock
"Strictly for The
Birds" Dept.
.
&
**.
.
r\cc*
Miami
Uiiice
MIAMI, Fla.—John Nuveen & Co.,
national
investment banking firm
with headquarters in Chicago and
New York, has opened its newest
regional
office
in
the
Pont
du
Building, according to Chester W.
Laing, President. -Mr. Laing said
that Fred
pointed
*
Clark
B.
Florida
ager
for the
and
largest
has
been
Regional
ap-
Man-
company, the oldest
organization in the
United States dealing in tax free
Public (Municipal) Bonds, exclusively.
Mr. Clark, a veteran In the investment
banking
business
in
White, Weld & Miami, has been Manager of the
Co.; R. H. Moulton & Company, eastern Florida municipal bond
Stearns
&
Co.;
Security First National Bank;
Wells Fargo Bank American Trust
°Perations of Goodbody
ar:d
Previously
was
&
Co.
associated
Company; California Bank, Los Wlth B- J- Van Ingeh & Co., Inc.,
Angeles; The First National Bank also in Miami. Mr. Clark will conof Boston; Eastman
Dillon, Union tinue to specialize in the underSecurities & Co.; The Philadelwri+iricr
tnHin(J
linn
phia National Bank; Blair & Co.,
1,
tradinS and diatilbution
Incorporated; Weeden & Co., In- of Florida Public Bonds. The
corporated; Equitable Securities Miami operation of John Nuveen
Corporation; The First National & Co. will be tied into the cornBank of
Oregon; Stone & Webster pany's private wire
.
.
system
pro-
FirTtrNa«onal%0ankTpkflps? Fein ^iding COmmunication wlth its
Co.; Salomon
a
&
Bros.
R. W.
•
&
Hutzler;
Pressprich & Co.
'
Paine, Webber, Jackson & Cur-
headQuarters and other regional
offices
in
principal
coast to coast.
cities
•
from
,
Volume 191
Number 5964
.
.The Commercial and Financial Chronicle
.
(2827)
AS WE SEE IT
That
Continued from page 1
is precisely the error that most of those who
developed a sort of growth complex would make.
They, whether they realize it or not, would like to mount
the Soviet horse, or at least one that has been bred
and
Lemonde Trading Co.
have
hence.
Perhaps its figures are as good as any (none are
particularly convincing), and they hardly add much to
the uneasiness of those who shudder to think
of what
Russia may make our boasted
economy look like in the.
relatively near future should we fail to adopt more of
general ideology and techniques of the socialists. For
the
it is worth the
what
CIA finds that
by the end of this
the total output of goods and services in Russia
will almost reach the point that we attained in 1958!
decade
Such
achievement
an
represents a rate of growth
percentage terms than most of the
somewhat greater in
projectors have
come up with for our own economy in
period of time, but it hardly presents a picture
produce sleeplessness on the part of the American citi¬
the
to
BROOKLYN, N. Y.
Lemonde
Trading Company has been formed
—
with offices at 260 Lenox
Road to
conduct a securities business.
Leonard Feldman is sole
trained in communist lands! All the New Dealers and the
Fair
Dealers
are
ardent
propri¬
supporters of this type of
growth therapy. This or closely related types of thought
and policy have all too often
crept into the plans and
programs of the Administration, and — with regret be it
said—into
the
various times
so.
come
in
are.
was
formerly with Sutro
Partnership
The First Republic Associates has
been formed with offices at 375
Fifth Avenue, New York
day he set forth his own
general terms which suggest that he now has
to understand how fallacious these notions
He
Now
thinking of the Vice-President himself at
in the past, or
certainly seem to have done
same
us
etor.
Bros. & Co.
In his discussion the other
ideas
27
continue
the
City, to
investment business
of The First Republic
Corporation.
Let
Partners
hope that he really has!
are
Ira Sands and Jerome
Wishner.
The CIA
zen.
apparently thinks that the output in Soviet
higher than at present.
organization which has
computed a projection of our output which embodies a
growth of 78% over the same period of time. There are
several projections which
suggest a 60% or greater rise
during those years. Taking the .conservative estimate of
Russia in 1970 may be some 80%
There is at least one
reputable
3% per year compounded annually
growth during the decade (assuming
we
find
that
our
conditions
in the terminal year) would be about
40%, and to that
figure we should have to add any amount dictated by
average
exceptionally good business in the terminal
Shots
But
as
in
year.
the Dark
who has cut his eyeteeth knows,
these "projections," whether
applied to our economy or
that
of
every
the
one
Soviets,
hardly
are
than "shots in the
more
dark." He who takes Russian statistics at face value
(so
far
they supply any in any great detail) is naive in¬
employ such figures as the basis for projections
as
deed. To
a
decade into the future—and then to convert the results
into dollars is
ing)
probably
exercise,
but
interesting statistical (or guess¬
much more. Certainly the
an
not
very
results must be taken with
more
be said of
can
our
handful of salt.
a
Somewhat
figures, but no one out of
his swaddling .'clothes
supposes that even our current
figures—which are quite possibly the best in the world—
should
be
taken
own
without
mental
a
reservation
allowing
lii
for very
considerable inaccuracy in either direction. And
any one who has ever .tried seriously to project the past
into the future on the basis of our
figures is painfully
aware that the risk of error at the
10-year point in the
future is very, very considerable.
'
But when any
attempt is made to guess what the
product mix of the output either in this country or in
Russia
decade
a
hence
will
be, the difficulties
become
immensely greater—and the. type of goods that
producing or capable of producing at that time
Russia
is
we
are
that
or
producing or capable of producing is fully as
as total output. The CIA seems to suppose that
output will, in substantially - greater propor¬
important
Russian
there's
tion, consist of goods which the rank and file may con¬
sume.
A priori, one would feel inclined to
agree with this
belief. But
even
on
this basis it is still
a
point to any particular figure as representing a serious
hazard to us. Most of the estimates, or
projections, made
our
own
which undertake
economy
to
phase of the matter simply assume that 10
at
or
whatever point in time
into
go
same
as
years
they have been
on
than
similar
a
a
the
more
in recent
average
THE FAMILY
The business of
and
biggest
directly
tenable assumption
But
we
need
not
labor
the
point.
undertake
make
to
use
of
the
are
made
to
married
These, and many
any
current
tions is
an
excellent
one.
Beneficial
and
statistics
most
important
—-
helping the family; the vast majority
people, They
are
rooted in their communities and their record for
considerations, must be borne in mind by
all who
maintaining the family is the
of all. For the family maintains ail other businesses
Beneficial's business is that of
supposition would be with respect to Russia.
Still More Important
—
indirectly.
or
of its loans
other
•
hence—
the projections reach—the
years, which is on the whole
•
this
proportions of the different broad categories will be about
the
•
hazardous guess
to
of
no
that is both
serious, stable, well-
honoring their obliga¬
helps them with
a
small loan service
dependable and geared to family requirements.
~
and estimates of the
the
Soviet
other
all
and
our
comparative strength
own
economy.
aspects of this general
this
in
importance.
them the other
There
or
growth of
are,
however,
matter which far
Beneficial Finance
years,
with
an
System has been doing this for
more
than 45
international reputation for superior service.
surpass
Mr. Nixon put his finger
upon
day when he said: "Mr. Khrushchev has
...
a
BENEFICIAL loan is
described the competition between our two systems as a
horse race. In referring to the American economic
for
a
beneficial purpose
system,
he said
worn
our
recently, "there
was a
horse but
now
it is old and
out, limping along,at half speed. On the other hand,
communist horse is young
and strong, running much
faster and certain to catch up and
pass the Americans.' Is
he
right? The
answer
is
no,
provided
and don't make the mistake of
we
stay
trying to get
on our
on
horse
his."
-
:inance
Beneficial
Building, Wilmington, Delaware
Co:
BENEFICIAL
FINANCE
SYSTEM
MORE THAN 1,200 OFFICES IN THE UNITED STATES, CANADA AND ENGLAND
'J.K.
28
The
(2828)
1959 the foreign
of
end
At the
investment in Canada was
half
lion,
Not Solve Canada's Problems
Continued from page 3
which have other
means
of raising
funds besides bank loans. Interest
have
limitations
rate
the
caused
banks to withdraw from the field
of
insured
housing loans.
Basis Exists for New Loans
As
result
a
the
ments,
have
increase
a
these
of
reserve
their
business
loans
basis
selective
prudent
offers.
portunity
develop¬
banks now
ability to
chartered
certain
a
on
op¬
as
Sound
new
able
to
obtain
accommodation, and
enterprises
banking
are
able in ap¬
obtain an in¬
in
their
lines
of
credit,
such is necessary to enable
existing businesses
propriate
crease
where
are
to
cases
them to expand
the scale of their
This
is particularly
operations.
true in the field of small business.
The banks' larger customers
alternative
need
and
of
means
not
rely entirely upon
for working capital
credit
bank
have
financing
other
,
all
to
difficulties
economic
saving
business
hand,
of course,
in
a
Certainly anything that can en¬
essential, but it does no
than contribute to
which business
a
da, particularly on the part of in¬
dividuals and families, would be
may
and cannot
in the immediate
that all the various spheres helpful, both
situation and in the long run, and
progress.
ensure
of action
and in
It
does
not
and decision
in business
it
government and in private
to
produce
maximum
would
be
beneficial
does
growth,
arise
not
so
much
from
a
shortage in our total saving—al¬
in
In though rising consumer debt and
particular, the creation of addi¬ government deficits are a definite
tional money does not ensure that handicap in that regard—as from
excessive capital spending, which
it will be spent, or spent in a way
over
the past five years or more
which increases economic activity
has amounted to 26% of our total
and
employment in Canada. In
national production, as compared
some
circumstances, such as we
have in Canada today, the result with 18% in the United States.
When capital spending, not just
of additional overall spending
money
but in real physical
may be mainly to increase imports in
full employment and a balance
international
our
payments.
exceeds saving,
that is,
excessive
rate, that is, to con¬ when capital expenditure and con¬
tribute to employment and activ¬ sumption combined exceed
total
including
whatever
ity in other countries rather than production,
becomes temporarily available by
Canada, financed by either a drain
on
our
exchange reserves or an using up stocks, the excess can
increase in our foreign debt.
only come from imports. An ex¬
cess
of
imports
over
exports
Singles Out What Is Wrong
means of necessity either using up
Last year
Canada's payments reserves of foreign exchange or
or
to maintain them at an
for
already terms,
imports of goods and services
from
including
abroad,
and dividend
payments
on
our
foreigners
other,
interest
in
account
provide the addiitonal imports on
credit. It is one of our problems
of debts to foreigners and foreign
investments
foreign borrowing, by which,
new
one
that
in
Canada, exceeded
receipts from exports of goods
way
or
foreign investment each year,
and correspondingly our excess of
new
foreigners have been only too
ready to provide to Canada more
credit and more imports on credit
exports,
over
lead to
because
it
increase in un¬
an
employment. This is absurd, and
it implies that only a fur¬
ther increase in the annual rate of
indeed
increase in foreign
debt—and im¬
ports—could enable the Canadian
economy to achieve full employ¬
ment.
those
to
concerned. Our problem, however,
affairs will function in such a way
as
increased saving in Cana¬
courage
climate
enterprise
that we must not con¬
template reducing our reliance on
eigners,
would
Spending
sometimes told, by for¬
are
imports
Capital
Blames Excessive
We
simply not true that Cana¬
to
continue
to
borrow
It is
has
da
greater
quantities than it exports, in or-;
abroad, and import vastly
maintain economic growth
to
der
employment for a grow¬
and full
ing labor force.
How serious this
how it should be
ter for
of
problem is, and
solved, is a mat¬
urgent consideration by all
Canada. There are some
in
us
Canadians who feel that the mag¬
nitude of our foreign
debt and the
prospects of its future growth are
alarming. Others are still unaware
of the problem, or are willing to
go
borrowing as long as for¬
on
funds are available, even
though to an increasing extent we
are now having to borrow the for¬
eign
eign funds required to pay inter¬
est and dividends on past borrow¬
We have gone along on
ings.
for
course
a
some
such
without
years
all the ad¬
justments which other countries
in a similar position have had to
having
this
For
make.
it
to face up
seems
to
to
however,
Canadians that
reason,
some
of the
when they
come, as they must, will be all the
symptom of excessive total spend¬ use with real benefit to ourselves.
.greater and all the more difficult
The higher rate of capital spend-'
ing
and
misdirected
spending,
to cope with, and that steps should
particularly since it has gone on ing in this country than in the be taken now to make adjust¬
United
States
which
has
been
more or less at this order of mag¬
ments in a more gradual and or¬
stimulated or facilitated, directly
nitude for
a
number
of
years.
derly fashion. Others suggest that
There must be something wrong or indirectly, by foreign borrow¬
the future be left to take care of
with the structure of the Canadian
ing has not produced a commen- itself. Some indeed are quite de¬
economy to permit a balance of surately higher rate of new pro^featist.
payments deficit of such a size to duction each year, nor has it elim¬
services
and
This
deficit
by
is
$1,460
in
my
million.
opinion
than,
a
credit.
And
;
are
individuals
tional
nesses
have
much
busi¬
and governments combined
attempted to accomplish too
expansion
and
growth
too
fast, without sufficient regard for
whether the total volume of capi¬
tal expenditures was appropriate
in
relation
to
situation, or
whether. the capital expenditure,
particularly that financed by for¬
eign borrowing, was of a charac¬
ter
which
our
added
to
our
national
productive capacity in such man¬
ner
and degree as to improve our
a
in
is
of
problem
Present
Means
Course
Integration and
of Canadian
Loss
Independence
Growing Debt
the
first
huge
the
place
the
imbalance
from
between our annual receipts
transactions
current
adjustments
Economic
problems that face us today
very
real and very large.
There
and
Predicts
The
Undoubtedly there is
not just one single cause for this
situation, but one important cause,
I
believe, has been that in the
aggregate,
the impact on our economy
ultimate
Problems of Trade Imbalance
fully
on
could
we
seems,
now
inated unemployment.
persist for so long. We are spend¬
ing too much, and we are mot
utilizing Canadian produc¬
tive potential to produce the kind
of goods that we are importing in
such large quantities from abroad
it
as
on
interna¬
mind, we could not leave
this problem to solve itself with¬
out
giving up the
attempt to
maintain an independent economy
and an independent nation north
of the American border. Rapidly
To my
growing foreign debt must lead
ultimately to loss of any capacity
payments oh current international*
to be masters in -our own house.
Associated
accounts.
the
and
accounts
annual
our
with
this
is
in our
foreign debt, including within that
large
very
term
both
sult
of
debt
increase
incurred
foreign
as
a
the
borrowing
by
liability
represented by
direct foreign investment in busi¬
ness
enterprises in this country
and
foreign holdings of the
we
the
drift
do
trends
secu¬
rities of Canadian corporations.
not
of
effectively
the
past
change
we
shall
into an irreversible form
re¬
Canadian entities, mainly provin¬
cial and municipal governments,
and
If
integration
with
a
very
of
much
larger and more powerful neigh¬
bor. I do not believe this is what
terest rates in
para¬
as
deficit in our international
payments should be ac¬
companied not by a weakening
exchange rate but by a marked
degree of strength in the- Cana¬
dian
exchange rate,
leading at
large
balance of
at
separate and self-supporting and
self-managing nation,
which
lower rates of
Canadian
inducement to bor¬
feel under any
has
the
proposal
York. This
New
in
row
drawbacks, including
obvious dangers of inflation,
many
associated with it.
But
in
addition to all other
value for the
Canadian dollar at a premium of handicaps, it suffers in my opinion
5% over the United States dollar. from the disability that it simply
times last year
It
not
is
to
a
remarked that
often
so
would not work. It would tend
not
Canadian only to create inflation, which
persisted would cause a large rise in the
money expenditures and borrow¬
over a period of years when there
have been inadequate employment ing requirements of governments
other
public
and
private
opportunities to utilize the pro¬ and
ductive capacity of our growing bodies, but also fear of inflation
population. These two paradoxes on the part of investors and sav¬
are of course to some extent con¬
ers, such as we had some experi¬
nected, as all the aspects of our ence of in 1958 and the first half,
large deficit in the
balance of payments has
the
today
interconnected. The fact
at times the amount of
are
that
is
problem
economic
fundamental
foreign borrowing done by Cana¬
dians has exceeded even the large
led
has
and
financed
be
then requiring
of imports
volume
to
a
circumstances
make
rates of
of 1959. Under such
lenders would not willingly
at lower
available
loans
interest, but would put their sav¬
other uses unless offered
increasingly higher rates of in¬
terest. The conditions making for
ings to
strengthening of the Canadian ex¬ foreign borrowing, that is, exces¬
expenditures and
change rate. This in turn has in¬ sive domestic
and
higher
interest
duced a
higher rate of imports borrowing
have
otherwise
would
than
oc¬
curred, pushed the rate of imports
would
abroad,
but would more
removed
be
not
those
than
rates
another notch, over and over likely be intensified.
again, imports which compete '■■ Monetary inflationwould" not
with Canadian production for the increase the volume of real sav¬
domestic market and have an ob¬
ings within the country, of real
vious effect on employment con¬
goods and services available for
ditions in Canadian industries.
use • by
governments,
business,
houseowners, farmers and others
Deplores Provincial and
concerned. If anything, it would
Municipal Dollar Borrowings
cause a reduction in real
savings
I have no doubt that the mar¬ and a waste of real resources. It
ginal factor, the straw that broke would ten& to increase' imports
up
to speak—and
very large
been the un¬
the camel's back, so
times it has
been a
would
than
more
encourage
domestic production
in
straw indeed—has
competition;.with imports, and the
necessary and ill-advised bprrpw- rise an prices and costs would cer¬
ing in foreign currencies on tlie tainly be a handicap to exports.
part of some provincial govern- No nation has ever solved balance
ments
and municipalities and of payments deficits by inflation,
their agencies, whose operations and
those
nations
which from
have no connection with foreign time to time have got into balance
exchange
or
foreign
trade
on of
payment difficulties through
which
to
base
the servicing
of over-spending have found that a
foreign
currency
obligations. return to sound monetary prac¬
What the ultimate cost of such tices and sound fiscal practices is
at
borrowings
Such
tell.
be
may
no
borrowings
one
can
under¬
are
greater
essential.
'
■
Our
position today is such that
taken apparently because the rate
general measures designed to in¬
of interest on borrowings of U. S.
crease total spending or total pur¬
dollars in New York is lower than
chasing power indiscriminately
the rate of interest on borrowings
would not be helpful. If I felt that
of
Canadian
dollars in Canada,
monetary expansion would make
but the cost of acquiring the for¬
a
significant contribution to an
eign currency with which to pay increase in
employment I would
off these debts and to pay interest
certainly be in favor of it, but not
them is not calculated and can¬
on
not
be
ence
calculated,
as
past experi¬
has indicated.
If
starts
dollar
the slippery
down
ever
slope of
depreciation, as has been
urged already by some, and as can
happen to any nation that looks
currency
for
apparently
easy
short-run
gains without regard to the future,
no one can say what the ultimate
price may be at which these for¬
eign debts will have to be re¬
deemed.
The state of
our
in circumstances where the result
instead
would
export and im¬
be
inflation, more
balance of
with
difficulties
Canadian
the
our
payments; - and
ultimate unem-ployment on a larger scale than
ever/
Similarly,
under
present
conditions
general measures in¬
volving
government defi¬
signifi¬
larger
would not contribute
cits
cantly
to
employment
increase
an
in
likely to
more
but
Canada,
increase
in
be
imports,
that is, to increase employment in
other
countries
rather
than
in
any
employment are affected by many
are more important
than
the
exchange rate of the
is
This
Canada.
port trade and the degree of un¬
not
to
say
that
ment
particular
kind
of
govern¬
expenditure is good or bad
itself, but simply that financing
government expenditures in gen¬
eral by further deficits would do
factors which
in
moment, but I should like to say
a further word about the problem
of the exchange rate in view of
way as
the amount of discussion which it
has
receiving .lately.
been
The
Minister of Finance has in several
public speeches discussed in detail
various
possible
actions
the
by
government to bring the Canadian
dollar into
parity with the United
States dollar—or, for that matter,
into any other desired relation¬
ship—and has outlined the disad¬
vantages as well as the advantages
inherent
the
in
attack which
various
lines
of
various people have
suggested.
Doubts
dianism, the dream of Canada, as
a
available for lending
interest, so that
borrowers
would not
money
more
extraordinary that the
Monetary
Expansion
Will Do the Trick
I
that
should
more
like
suggestion
to
which
only
directly
good, in the same
general monetary inflation;
increase in everybody's money in¬
come
in
or
by
those
take
substantial increase
a
money
.
the
-
form
salaries. Whether
in
any
which
incomes
of
a
wages
wage
and
increase
particular industry at any
particular time is good or bad for
ter
a
mat¬
consider.
But
directly concerned is
for'
there
mention
harm than
The same reasoning would ap¬
ply also in connection with pro¬
posals to increase consumer pur¬
chasing power by
a
general
those
Canadians want, for it means sur¬
rendering the very idea of Cana-
bank,
central
the
bringing about a reduction in in¬
Canada and making
many
so
and since.
remarked
often
is
It
doxical and
to
Would Increase
Unemployment
and
Canadians of their time
Thursday, June 30, 1960
namely, that there should be a
large degree of monetary expan¬
sion in Canada with .a view to
McDonald, Georges
Cartier
Etienne
Imports
by
United States.
and
shortage
of total money or credit, if it de¬
velops or threatens to develop, is,
more
tion, John A.
.
concerns
gripped the imagination and stim¬
the energies of the archi¬
tects of the Canadian Confedera¬
important sections of which
are completely controlled or domi¬
nated
by foreign parent compa¬
ability to pay our way in the
nies, and half in the form of for¬
world.
eign holdings of securities issued
Except insofar as it relies on by
Canadian
governments and
foreign
borrowings,
a
nation's corporations and other miscel¬
laneous
liabilities.
Canada's net
capacity to finance capital ex¬
penditures, that is, to allocate real foreign liabilities, after allowing
physical resources to production for our official exchange reserves,
of fixed capital, both private and
government loans to foreign coun¬
business and social, rather than tries after the War, and foreign
to day-to-day consumption, must investments
held by Canadians,
to
$15.4
billion,
at
obviously be determined by its amounted
capacity and willingness to save which level they had doubled over
out of income each year. Canadian the
last four years and tripled
saving in total is relatively high over the last seven years. Divi¬
in comparison with other coun¬ dend payments by foreign-owned
tries, and indeed appears to be a branch plants in Canada and by
little higher than in the United Canadian
corporations
to
non¬
States. Personal saving as a per¬ resident
shareholders
have
for
several years greatly exceeded the
centage of income after taxes is
amount of such payments by all
perhaps 1 % lower than in the
United
States,
and the govern¬ Canadian corporations to Cana¬
ment deficit—all governments to¬
dian shareholders, excluding du¬
gether—larger than in the United plication through inter-corporate
States, that is, governments take a payments in Canada.
greater quantity of the available
supply of new saving. On the Denies Cut in Capital Inflow and
corporate and unincorporated
enterprises and including funds
It would be an over-simplified
set aside for depreciation and re¬
view of economic processes to be¬
lieve that an adequate supply of placement of equipment, is sub¬
stantially
higher
than
in
the
money and credit is the answer
problems. Correction of
Canadian industry,
in
.
ulated
many
both
funds.
$24 bil¬
of; direct
the; form
in
investment
Chronicle \
Commercial and Financial
them
is
no
to
foundation
for
the
argument that a general increase
in
money
incomes
can
increase
Volume
Number 5964
191
employment- in
total
Canada stand on our own feet, we can
only meet the burden of these
'' v' payments by keeping our expend-
today.
„
„
of
Realities
.
i
The Commercial and Financial Chronicle
Economic
Solving
-
Difficulties
itures
0f
particularly
not inimical
are
to achieve balance in
employment.
Inflationary
would aggravate rather
than cure the causes of unemployment. There is no easy way by
11
u
measures
real
which
.
pffnr?
withrmf
CaAW
a£ tr^fn
shortrun.
at
rat**
anv
Thp
fn
met
a
in
thp
nnpmni^v
nnctnf
T
°
^ employment and of measures to promote
the
on
anv
of
Sther
exports after allowing for
our
that volume of export proceeds
which must be used to pay for interest and dividends on our for-
can
the
sav
and that is there is
One
of
'
question of maintaining
The
a
it
something
regions of Canada
ative
as well
industries within
also one which calls
different
is
sharing of burdens
above all for a
the long
that
we
run,
warnings
untarily accepted and undertaken
if we all knoW and study and face
a
parts
of
country
the
is
to re-establish
we are
bring
Canada
And
and
only
can
ous
full employment
a rising stand¬
living without inflation, in¬
without
inflation,
and
inflation
without
—
without
unemployment. All this is within
our
own
power to
achieve, but
measures of an inflationary character
least
are
likely
of
all
to
bring about such desired social
objectives and ought to be all the
more
suspect
because they are
represented as being an, easy way
out.
A few weeks
the Secretary
of
the
Treasury of the United
States forecast a growth of 50%
in the
ago
Gross National Product
and
overbearseen
of
that
country over the next ten
years. That is approximately the
of
not
in
ties and
didn't
we
1.we ,are c^Pafri,e
.
them
world, and in Canadian eyes and
of non-material
values
second to none.
We do not have to choose between
poverty - stricken
independence
account
as
well,
and
some
nialism,
whole
form of economic colo¬
for
either
for
or
any
Canada
as
a
the regions
of
without
further large increase in our
If
we
only foltips
or
else's
certainly not come about if present, trends continue without
forefront of our economic and so.
...
t^pay
•
our bwri
,
.•
Say
and
which in the sum of all its aspects
Domestic Industry
To Cut Imports
Developing
the major
current
$1,460 million was a
deficit
in
respect of what are
called invisible imports and ex-
ports,
of
that
current payments
exported and
amounting
to $1,075
is,
other than for goods
imported,
This has shown
million
a persis-
tent upward trend for some years,
and some degree of increase is in-
ahead,
partly because of the foreign debt
we
have
already
incurred. By
1970, the non-merchandise deficit
may well amount to more than $2
evitable
billion
a
for
many
year.
years,
If we are ever to
is
securities
him
who
measures
good
up on
H. S.
both
listed
the
issues
going
Twenty-Year
Dated
than
anything
the
an-
of the World Bank
and International Monetary Fund,
two institutions wihch are dedi-
cated to the promotion of sound
economic growth, monetary stability,- and the expansion of international trade. I heard the
President of the World Bank congratulate a European country for
having overcome ats: postwar mflationary pressures and balance
of payments problems which—because of the destruction and dislocation arising from the war
were much worse and much more
1926,
Colombia)
1,
1927,
Due February
qualities,
the
and
than
a
debt.
Netherlands
of
as¬
The
time
within
Copies of the Offer may he obtained upon applica¬
Exchange Agent, The First National City
Bank of New York, Corporate Trust Division, 2 Broad
tion to the
way,
ent, industrious and self-respect-
New York 15, N. Y.
mg nation
the Ontario chamber of Commerce, Ham-
uton, Canada.
25,
Bonds and the appurtenant
which the Offer, dated June
period for exchange of Convertible Certificates
3% External Sinking Fund Dollar Bonds of the
Republic due October 1, 1970 in multiples of $500 prin¬
cipal amount has also been extended from January 1,
1961 to January 1, 1962.
indeoend-
...
'■»% '
The
na¬
by Governor Coyne before
OF EXTENSION
for
m tneir interest as an inaepena
-T^7address
,
for Republic of Colombia, 3% External
Sinking Fund Dollar Bonds, due October 1, 1970,
may be accepted is hereby extended from July 1, 1960
to July 1, 1961.
pursued
much the
same
course, because they knew it was
,.Who will say-it-Is beyond the
power of Canadians to do the
same?
Bonds
1947
coupons
borrower—
an
Bonds
1947
Due October 1,
1927,
1942, to exchange the above
The people of
this, and a
as
of October,
NOTICE
.
tions
interest
Due May 1,
May, 1927,
External Sinking Fund Dollar
Republic of Colombia, Due October 1, 1970
Bonds of the
from
European
of
Convertible Certificates for 3%
did
other
Bogota)
and
early days of post¬
by some for¬
rather
number
Bonds of 1927
Mortgage Bank of Bogota
Issue
time after the war we were a
foreign
the
1, 1947
1927, Due October 1, 1947
October X,
Issue
Canada, it is strange to recall that
a
1946
Fund Gold Bonds of 1927
Twenty-Year 7% Sinking Fund Gold
rehabilitation
lender
Bonds of 1926
Due November 1,
Twenty-Year 7% Sinking Fund Gold
order overcame great hardships
and handicaps, and succeeded in
living within their means, and
Paylr\g off gradually their post¬
war
Last October I attended
February
Dated
in
we
eign loans—including loans
for
Bonds of 1927
1947
unless he labels it
highest aspirations of the human
nual meetings
1,
Twenty-Year 6Sinking Fund Gold
Never overstates,
these
in
Bonds
1948
1927, Due April 1,
Sinking
7%
financial statesmanship,
With
Bonds
August 1, 1947
Sinking Fund Gold
November
Twenty-Year
these, they set their bouse in
be
April 1,
7%
Dated
•
executions.
guesses
sisted
Bonds
15, 1947
6% Sinking Fund Gold
(Banco Hipotecario de
Market;
also
that are coming.
morale, hard work, self-discipline
war
«
6% Sinking Fund Gold
(Banco Ilipotecario de
and
Bonds
1946
Mortgage Bank of Colombia
the
and
1,
(Banco de Colombia)
Watches for reports promptly on
changes in individual
stocks and
difficult
Bank Bonds
Sinking Fund Gold
7%
Twenty-Year
;>•
Honesty:
Offer)
Bank of Colombia
and
the following
Over-the-Counter
and
Birkby Opens
April, 1928, Due April 15,
of
Issue
service
Alertness: Knows what is
orders
thatf
Ilipotecario)
Duo April
August, 1927, Due
of
Issue
Dated
new
as
Co.
1927, Due January
Guaranteed Twenty-Year
points:
never
January,
Guaranteed Twenty-Year
and
conscientious broker who
give
of
Issue
market
of
coups,
can
the
any
When
NUTLEY, N. J.—Harold S. Birkby
is conducting a securities business
Vv**vi.«vv.v—0 M
7% Sinking Fund Gold
Guaranteed Twenty-Year
figures. The investor who
knows something about investing
in
make.
can
7% Sinking Fund Gold
1926,
of
Issue
seven
on
firm
sales force
performs
investment
-mta-ist?
(Banco Agrlcola
,
Guaranteed Twenty-Year
plays,
large ac¬
counts that have given discretion¬
ary orders that run into six and
a
best
i
too
stories
tall
the
that
Agricultural Mortgage Bank
capable of satisfying the
will
element in sp°rjt
international
total
deficit
employment, with an ever-widenkg range of modern industrial
and scientific occupations available to them, and can maintain a
standard of living and way of life
change.
our
well
department
the
merchandise
Colombian Mortgage
i
make our owp, place in the world
all Canadians in every part of
for- Canada can achiever productive
debt, but it will not come
about automatically and it will
Last year
with
research
supply
To the Holders of
their
Canadianism in the
put
any
eign
*
can
(This Announcement is not an
of Canada.
of growth in this country in
years
staffed
&
to correct it.
in real terms,
values, that we had in
ten
building their business. A capable,
well
that
follow
have
someone
,Pro~ wants
Canadians in all parts of
Canada with a way of life which
even in economic terms need be
second only to that of the richest
and most powerful nation in the
taking
they
successful
the
some
know-it-alls. They
many 90-day wiz¬
ards in their time to be impressed
by
today are
importance of
keeping customers and
of
aware
PROFIT in
dumb bunny indeed.
a
seen
firms
many
If it; looks like a mistake has been from"offices°at ^FranklinTve."*,
made, he owns up to it and trys under the firm name of Birkby
growth
next
good
well
investment
an
to the customer and talks it over.
of braggarts or
have
viding
termihsd
gree
needs
make suitable sugsuxiame su&-
Experienced investors fight shy
terms
*2*866 h0W
business grows.
your
A
SnSiHnS
neonL 1
for
working out well, he goes
the good luck that ensued.
,...
,-7
the
can
Suggests Sales: If
is
cial thinking, and recognize each Canada have had to deal with.
He attributed their success not
other as fellow Canadians, if we
Canada in the last ten years, ac- co-operate and share, we can be to the possession of rich natural
companied by a very large in- both independent and wealthy, resources, of which indeed they
crease in our foreign debt. There
even as the ™£ld ijJJ: arHeps have none, but to qualities of per-
degree
not money
cus-
bit of luck,
a
hear
to
who
was
lowed'
have our difficulproblems, let us not for-
Although
~
acSaun_ ?
and
men
satis¬
a
a
Oftentimes
varying circumstances of time and
place may require.
services
balance
a
international
our
vari¬
and
of government
forms
m
economic growth
services
to furnish facts
think
anyone
be. strong
healthy economic structure as the
meaningful
tional identity if each of
inflation,
social
to
^ "
hunches and have taken credit for
without
ard of
would
suffi¬
Has
customer's
his
knows
couple of times on
speculative stock, and you
some
from
salesmen
knowinfi
equilibrium in employment opportunities inside Canada itself.
without inflation,
creased
able
being an
know-it-all. I've
ing
of na¬
its main
economic regions is likewise en¬
abled to develop and maintain a
have
usually
are
af°rJnvestment as °PPor" MONEyTs 'as stopll
arise,
an-
Con_
advice
about the desired achievement.
can
between
anyone.
other
Suggestions:
that he
su lliai ue
economic
equilibrium
between
Canada and the rest of the world,
and also in order to provide for
to the facts, and reach a broad
measure of agreement W'WKdt^we
wnat to achieve and what meth¬
Wc
difference
^
re¬
cient knowledge of values, timing,
values, understanding trends, and
large expansion of
secondary
industry in
domestic
up
to
need
never
t..-*.
moon
that
good thing but there
a
cap the turn
ously it is more likely to be vol-
calculated
fidence is
jg
call the shots
can
to
transactions
all
on
saieSmen who have
is not in my opinhigh price, but obvi-
best
and
account
including
'"'
'
about
in the office.
a
PYnP
an
swers
of
expected,
essential if
are
this
enough
vnnr
»
Never
information
client's
so
part that he has most of the
u
*
A
'
others,
and
nnvfhino-
be
various
ods
+v,^rp
export industries may reasonably
ion
very
than purely negagainst the insid-
of employment-increasing
in the long run,
a
Tf
x.r
Confidence:
private
Guards
may
figures—and
pansion
all remain Canadians
may
I
Salesman
general addition itto must be clear being
terms,
that in
whatever ex-
and in order
any
"In
day,
years
What Customers Want From
monetary inflation, excessive tot3.1 speridiri§ srid
reliance on foreign borrowing. In
shared, the price that
must be paid in the short run, in
order that we may all be better
off in
more
dangers
ious
arld_*°£?0r}u^lfS\Fiie^5?i
must
be
other
a
economic structure in dif¬
Canada
will
to
up
with
about clients. Quite frankly
monev
"
Offers
is
ferent
in
the
P
Keeps
peats
detailf d Prescription myself, but rienced inters don't want from
natural for people to expect
salesman is
attitude
his
viable
as
he
lives
talks
the best salesmen
Watches for able
may be belpful
S rUm°rS and g°S~
fei^s
"
another
know
something about this business."
sharpens the imagination and the
acti0n. I am not offering
?.
has
buying securities
success¬
fully for the past thirty-five years
thirty-five
within
who
been
costs abroad.
which greater employment oppor-
late?
?eWr
to learn.
more
customers
my
One
or
sooner
*
Pers.°fnal
if
aKout
same
lea^
vou
said
Canada'
he
who have been able to do
it*
«
invLtorffr salesman
as
thing
another, those of us
From
study and discussion of
employed must contn- these matters will come many
bute out of our resources to help suggestions as to the course we
share the cost of unemployment should follow. Many heads are
and to help .create conditions in better than one, and controversy
available
good if you
as
a
are
be
and
worry
Talk Too
Sound Too Wise
or
in-r
can't
factory job of advising their
who
will
Much
Doesn't
to reduce
In one way or
tunities
Who Knows
No
you
I Pu?Pe«v!
import, so that Some years ago Herbert Hoover so. Trys to sell securities that fit tomers on the proper securities to
nnrfe
? °Ur mercbandise
made the remark that fishing the needs of the investor. Places own. Nothing will build your busSo
e; somewhat oyer and taught who have been
the Those him humility and the stock truth at allinterest first. Tells the iness faster than that are
patience, customer's
some properly
years, they will come within
in
times.
timed investments
profitstay within the earning potential market for
lon^th
of
fimn
ahin fnr
niLnte v™J TwX
basic principle,
same
a way as
to
methods
Such
cost.
the
turn
The Man
We
just
salesman
a
people,
change
share eign debt, tourist travel abroad
must all and various business and other
prepared
are
a
import.
.
dustry in such
employment are real,
be borne by someone,
There are non-inflationary methods to deal with this, if the people
Canada
to
If
code,
need to develop our domestic in-
increased
and must
of
propensity
our
another
business.
good that
so
keep looking.
BY JOHN DUTTON
interna-
our
tional accounts without
investment
find
CORNER
I emphasize once again an equivalent amount. I can see
that sound financial polices are no possibility of our exports inno drag on economic growth, and creasing to a sufficient degree to
f
the
on
our
tactics have'no place in
pressure
vestment is
imports below the level
receipts from exports by
29
Doesn't Press for Business: High
SECURITY SALESMAN'S
May
c
(2829)
.
1.
-
»:
.
.
AGRICULTURAL MORTGAGE BANK
j' (Banco Agricola Hipotecario)
*
.i
,
By Augusto Espinosa Valderrama
Dated, June 30, 1960.
(Gerente General)
30
The Commercial and Financial Chronicle
(2830)
Over "the next five to ten years
The Consumer Credit
there
will
massive
be
Continued from page 7
spending
power
outstanding
expanded eight times from $18.6
the
over
entire
credit
consumer
has
in
billion
1940
$154.0
to
billion
now:
leave
work regularly, but not all of these
another qualified driver at
that
im¬
where
in
we
figure
'-(billion)
Disposable Personal Income
"Discretionary Spending Power" $26.9
Consumer Credit Outstanding.
8.3
$205.2
Surplus
readjusting our concepts of debt limits and
a
major broadening of corporate
We
140.2
Living Cost to Equal 1940 Per Capita
capable. This
or
2%
Excess
will
that
need
of
sort
ex¬
Taking
the
conservative
of homes with more than
$18.6
*
million
the
to work. Yet she
car
and
car
for
a
car.
Study of this prime two-car
times
8
lion
of
77%
or
who
be
Since
the
into
taken
ability
account.
to handle
con¬
justify
the
disposable income, it seems
logical that consumer credit out¬
standing should reach levels con¬
siderably higher than the prewar
ten
from
years
now,
must reconcile ourselves to
much
credit increases faster than
sumer
higher
In
1930,
level
the
a
total
of
we
very
debt.
outstanding
net
total of public and private debt in
the
United
States
Even
spending
the
power.
Discretionary Spending Power
Based On 1950 Standard of Living
There
about
Pattern
might be
the
of
use
as
prewar
year
spending
characteristic
is
ican
standard of
of
base^foi^ determining
a
"discretionary
It
Growth
questions
some
our
living in the last
1940
of
of
our
Amer¬
that many of the
"luxuries" of one period become
"necessities" as concepts of living
advance. Even
for
clothing,
food,
far
were
1940 standards
our
above
subsistance.
bare
Now it becomes almost
to
shelter
and
impossible
define "necessities." Our
is
today
omy
"needs,"
not
econ¬
basic
of
one
is one of "wants."
Wants can be created, and these
created wants or expanded mar¬
kets
but
be
can
satisified
when
in¬
creased
productivity provides the
purchasing power.
1940
selected
was
as
the
base
for standard of living and
discretionary spending power be¬
year
it
cause
fore
was
the last full year be¬
entered World War II, and
just before we discovered our
real productive ability—The Mir¬
we
in
drop
the relation
debt
to
of
Net
of
Production.
if
postwar
stead of prewar
taken
1950,
were
in¬
to be
the base year for the con¬
as
sumers'
1940,
concept of a standard of
living, the increase in discretion¬
spending
ary
in
power
the
last
assets
even
crease
used
more
in this period when 1940 is
as
base.
a
Rapid Decline Of Total Public and
Private Debt In Relation to
Production
year's
a
It
1930.
early
production
128%
was
1960
the
in
1940.
in
By
relationship
dropped to 106% of
had
year's pro¬
a
debt,
gage
inflation
and
which
has
At
production
a
level
billion in 1970 private
to $960 billion
grow
the
equity
of
$750
debt could
or
81%
and other public works
services, has been the rapid
expansion of debt — both public
and private.
dollars
would
relative
burden
carried
in
be
not
than
1940
a
we
greater
actually
189%
(or
of
$956 billion with
were
This is
factor of
a
strength in
emphasizes
unrecognized
economy—but
our
it
the
importance
of
holding our production level high
through increasing our standard
of living rapidly enough to con¬
sume
and enjoy what we are ca¬
pable of producing.
Corporate Debt Has Declined In
Relation to National Production
Net
long-term debt
has dropped about half its prewar
corporate
The
ratio
of
corporate
profits,
after taxes, to corporate long-term
debt
increased
from
15%
in
1940
ing capital
cent of longterm debt increased from 62% in
as
1940 to 103%
a
per
With
production level of $750
billion possible in 1970, corporate
long-term debt could expand to
over 2V2
times the present levels
to
—
a
about
The
increase
of
increase
use
of
our
productive
net
financial
billion
equity
in
in
net
40%!
or
equity
does
growth
farms, farm
homes,
machinery, automobiles, and other
physical
assets
individuals.
of
equities alone
billion in the five
proprietors'
increased
$37
17.
potential
cars.
family formations
two-car
million
annual potential
non-owners
families
Mass Millions
Climbing
are
creased
in
productivity is illustrated
data
which
down
of
by
1950
the
shows
break¬
spending
taxes in
consumer
income
after
with
contrasted
as
the
1956
the estimated distribution of
pro¬
and
on
the
decline
in
debt in relation to production, and
con¬
spending units in 1960. The
number with disposable incomes
of $7,500 has increased from 2.1
million in 1950 to
an
million in 1960, and
estimated 6.6
it is estimated
that the group from $5,000 to $7,lion
be
above $4,000
about 36
pared
4.3 mil¬
—
million—and
16.2
to
total
about
net
com¬
million
12
As these families
in
move
represent
creased
substantially
markets
for
goods,
concern
should
not
be
to
the
size of our outstanding
but. rather with the means
utilize
our
productive ability
keep fully employed our
growing labor force.
and
to
bulge in
a
of
large
to take
were
on
in¬
the habits and de¬
sires of the income group
into
which they move. This is true even
though taxes and the cost of living
have increased.
30 Million Additional Car Demand
Potential
in
though
we
passenger
1958
had
Federal
over
56
registered
cars
Reserve
Board
studies showed that the automobile
market
was
million
far from saturated. 30
additional
would
cars
needed
to
meet fully
potential demand.
the
in
spending
formations in the next few years,
Our population has more than
doubled since
1900, reaching
Change In Education Level Points
To New Living Standards and
By
July
school
times
the
1959
education
greater
full high
a
was
as
even
million
17
had
no
owned
ond
single
a
car
be
(con¬
1958
An
car.
because
car
needed
a
sec¬
their
single car
working
licensed car
driven to work every
leaving
drivers
in
other
the
family
stranded
without automotive facilities. That
totals
demand
a
million
additional
latent. need*This
potential
cars
of
based
offers
30
on
huge
pool of opportunity for expansion
of production and sales.
Analysis
single-car
there
are
of automobile
of
rate
2.9
over
million
a
use
indicates
per
idence, R. I.,
or
Omaha, Neb.
an
Jo our market each month.
The birth rate has continued
level
a
far
tions
above
by
earlier
population
at
predic¬
experts.
Births of 4.3 million in 1957
were
the
were
adult population, containing near¬
ly 49 million high school gradu¬
ates, contrasts... with~a population
2.1%
of 23 million graduates in 1940 or
held within 1% of the 1957 record
a
population of about 4J/2 million
largest
record
on
above
1956.
and
In
1958
births
and in 1959 births increased again
graduates shortly after World War
to
I, in 1920.
The "baby boom+ since 1940, has
been of such proportions that it
The rapid change
of
nearly
4.4 million birth level.
a
our
high school graduates in our
population at 51.6 million
on.
total
represents
the
38.3
increase of 35%
an
million
in
1950.
Significant Shift In Age Groups /
over
This
Coming
is
As
expected to grow another 36% by
1970 to
70.3 million. Total college
graduates increased from 5.9 mil¬
lion in 1950 to 8.1 million in
and
1960
by 1970 they should total 10.8
million
nearly
or
—
number in
These
double
of
86%
July
of
1960
there
children
more
years
in
age
by
will
population
our
than in 1940, and 79%
be
five
under
more
in the
five to nine age group.
This huge increase in the
the
1950.
ber
of
education
children
public
communication
soon
num¬
will
cause
school
in
changes
outcry
against
inadequate
through expansion of reading and
of viewing TV and of listening to
facilities and shortage of
teachers, as well as juvenile de¬
linquency. It will affect housing
radio
requirements,
levels
ence
in
and
be
can
acceptance
important influ¬
an
the
on
market
through the
the desire for a bet¬
or
ter standard
of
During
1965
and
huge
food
and
in
con¬
In the
hold
11-year period 1947-1958
phone increased
and
gas,
twice
over
tele¬
fast
as
the total standard of living pur¬
chases.
In contrast with a 77%
as
increase
in
of
total
consumer
pur¬
goods and services,, the
expenditures for elec¬
consumer
tricity increased 196%, for gas
206%, and for telephone 175%. So
beyond, there will be
movement
adolescent
of
age
consumption
interest
in
children
groups
a
into
where
is
high and
many products
starts.
The
expenditures for house¬
electricity,
chases
the
where
consumer
food consumption,
phases of family living.
the next five years, by
and many
living. Consumers
be quicker to recognize and
reach for improvements in pro¬
will
past
1940 to 1960
the
20-year
period
from
characterized by
increase in population
rapid
was
of the two extremes of age groups
—the very young under 10, and
those
60. There
over
was an
actual
decrease in the number of young
adults in the prime family forma¬
tion age group of 20-29,
The next decade will be differ¬
did expenditures for owner-occu¬
ent. It will be characterized by a
pied housing, user-operated trans¬
rapid increase in the family for¬
portation, travel, health, private mation
age group 20 to 29, and
education; and TV, radio, records adolescents 10 to
19, and a decline
and
musical
rapidly.
instruments
All
this
is
of
the
manifestation
home and
increase
further
a
trend
in
the middle
ities has
and
more
last 13 years.
cation
recreation
Total weeks of
workers
of
jumped
million weeks in 1959.
mated that
in
crease
visitors
areas
time
from
21.8
million in
in
i
the
total
1946
tripled,
62.6
to
1959.
,i
-
.
60
.
»
.
i>
.
j
Formations Will Add to
Business Opportunities
19 million who drive to
standard
with
of
+39
______
and
over
1'
+12'
+23
+36
+69
—
+23
Rapid Increase In Young Adults
Will Expand Need for
Consumer Credit
The number of young adults 21
to 25 reached a low
plateau in
1956, '57, and '58 of approximately
1017
Population and New Family
Along
+35
2
—
30-39
40-59
+28%
+27
v
20-29
administered by
the National Park Service
million
esti¬
With the in¬
pay.
leisure
to
It is
10-19
% Change
+83%
85% of vacations
over
with
are
.
1960-1970
% Change
Age Group
Under 10
!
from
NextlOYrs.
1940-1960
va¬
1946 to 77.7
30
group
;
Past 20 Yrs.
activ¬
than doubled in the
34.4 million weeks in
now
executive
to 39.
to
family life in America.
travel
that
owners
has
52 million.
over
Population continues to grow at
the
five
over
in 1930 and 110%
than in 1940. This
great
as
of
number
with
(over 20)
and
year, or 240,000 per month. That
is the equivalent of adding a Prov¬
New Markets
and
in
over
tripled to
car.
Leisure time available for home
units)
familv
second
latent
Of the 57 million families
po¬
likelihood
a
increments
181 million by mid-year 1960,
the
number
of
households
serv¬
ices, and investments if only they
day
chief
stimulus of
ownership and particularly
in recognition of the need for the
car
from
up
income class to the next, they
one
could
ings and net working capital, in¬
the strength of our finan¬
cial position. They emphasize that
our
re¬
venience.
was
dicate
desires in
and
ownership need to be
There is a "Habit Lag"
car
added
pulation growth and
ducts, in packaging
in 1960
million
with
the
is estimated to
1950 and 26 million in 1956.
the position of corporate earn¬
on
will
sumer
additional 13 million families who
facts
this
on
composition of
about
relationship to
in
in educational
population will will have a pronounced effect on
continue. In 1960 the total hunlbefr mew*!fa¥hily formations from 1960
1955 to 1960.
years
the 1940
even
of expanding consumer purchases
and our level of living fast enough
ability and have the 52% higher
standard of living such ability will
in
$227
was
This
sumer
declined
make
annual
million
new
cash
adults
strength of individuals in the five
$330 billion versus
billion — without exceeding
debt,
to
total
a
seven
additional from
changed.
in
the
to 20% in 1960. And the net work¬
with
war.
over
additional from
expanded
require aggressive
advertising and selling — because
net equity
a
500 increased fourfold
to recognize that
dramatically since pre¬
This indicates that if we are
At
of $788 billion.
units
a
year's production).
the ratio of debt to production has
seem
billion.
$561
was
The Income Ladder
exceeding even the 1940
relationship to production! And a
The rapidity with which mass
total public and private debt of millions of Americans are climb¬
nearly one-and-one-half trillion ing the income ladder through in¬
These
and
se¬
over
duction!
But few
of
million
start of 1960 total financial assets
early 1960 total of S529 billion
contrib¬
schools,
debt, and
consumer
without
uted to the attempts to slow down
plant expansion or the needed ex¬
pansion of construction of roads,
the
curities loans) the individuals' net
Farm
duction.
$126
A factor that has led to fear of
in
not include the substantial
of
90%
a
individuals
of
To
lation to
United States totaled $660 billion.
After deducting liabilities (mort¬
Even
be
of individuals in
At the start of 1955 total finan¬
cial
million
would
have
we
new
present habits
in 1960. In total dol¬
years
impressive—showing
the
of
any
million
financial equity
the last five years.
in¬ lars, net working capital of cor¬
porations is nearly five times as
crease in nine years 1950 to mid1959 compared with a
79% in¬ great as in 1940.
nine
5%
becoming
year, plus 500,000;
car
owners
added
through new
family formations, and assuming
the opportunity to convert, annu¬
ally, at least 10% of the 13 mil¬
lion who really need a second car,
in
owners
million additional from
indication of
176%
changes
since 1940, in relationship to national produc¬
tion. In 1930 corporate long-term
upgrading their basic living con¬
debt represented 56% of a year's
cepts—their per capita physical or
qualitative
purchases
of
food, production and in 1940 it was 44%.
clothing, and shelter—are consid¬ By early 1960 this relationship
ered as part of the exercise of was cut nearly in half with longtheir discretion in use of the new term corporate debt representing
only 25% of a year's production.
discretionary spending power.
Any
startling
years
made by consumers,
However,
replacement need,
or
non-owners
1.3
financial
private debt of individuals, busi¬
and corporations represented
was
acle
annual
900,000
0.5
potential
total
production.
ness
power."
economy
spectacular has been
more
private
Same
plus
0.9
strength and latent
purchasing power of consumers is
the $227 billion addition to the net
than double
more
tional
,
increase in discretionary
the
represented
a full year's na¬
production—actually 210%
relationship to disposable income. of the year's total production. By
The fact that the ratio now is 15%
early 1960 total debt, although
of disposable income is not alarm¬ over four times as great in dollars,
had dropped to 166% of a year's
Even
if
consumer. credit
ing.
reached 21% of disposable income production. Production, measured
by 1970, it still should not be in dollars, had grown more than
alarming in view of the probable fivefold. +;::' + +.■•
Shows
car
—
income
million replacement
4.5
7.2
changed relationship
should
million
13
second
a
year
In Five Years
Another
This
these
urgently need
per year.
much.
as
po¬
tential market shows that 10 mil¬
Equity of Individuals
♦Over
drive
can
usually has daily need
+ ",.:
++'
per
discretionary
ability to purchase is high.
Assuming a minimum of ' 4.5
the housewife is left at home im¬
mobilized when the husband takes
$4,000
over
the
million
$227 Billion Added to Financial
*$154.0
is,
and
driver, however, this means
that, in at least 13 million homes
of
regularly employed workers,
Discretionary Spending Power Over
Consumer Credit
in the upper half of incomes-—-•
are
one
a
increases in productivity per cap¬
ita at the minimum rate of at least
51.2
_
may mean
pansion in production and con¬
sumption if we are to keep infla¬
tion in check through encouraging
$345.4
49.2
Basic
productivity and
production and con¬
sumption levels of which we are
(billion)
—$76.1
increase
the
stock ownership.
I960,1st Quar.
1940
to
are
reach
Thursday, June 30, 1960
.
home.
proved productive facilities if
Growth Potential in the 60's
.
for
needs
investment
capital
new
.
rapidly rising
living we have the
a
million.
There
had
been
as
many as 11.7 million in this group
in 1947.
Starting with
1959
this
group began to increase. By 1965
the increase will be 22% over 1959
—by 1970 the increase will reach
Volume
Number
191
5964
and by 1980 the number is
estimated at double present levels.
This shift in age composition of
56%
.
.
The Commercial and Financial
.
Chronicle
(2831)
DTTT3T TP
PetroleumWorldwide Supply
population will have an im¬
portant influence on market op¬
31
TTTTT TTV
U 1 lJul 1 I
Jl U
our
And the Demand Outlook
portunities and need for consumer
credit. The rapid increase in those
„
„
BY
Lontlnued from Voge 15
crease at an average rate of about
Sard to other sources of energy. 2 billion cubic feet per day each
Again, the existence of tankers in year and Free World demand for
tie-up is the price we must pay oi\
yiciyase at, ar\ average
pressure on housing, transporta- tor progress.
rate of 800,000 barrels daily.
Finally, current excess refining '
Petroleum, because of its contion,
household equipment and
cleanliness, and cost,
furnishings, and all things having capacity in the U. S. is due to the venience,
fact that our industry generally continues to be preferred for many
to do with family life.
over-estimated its requirements, energy needs.
There are ample
the family formation
particular, will emphasize the usefulness of consumer
credit since they will put added
reaching
stage
in
-
increase also in the
rapid
The
nnXr oTelders—ove?ToAindT Abroad, sPare capacity has been supplies. In fact, right now overrntpV exnanded market onnortSni" •brought about by the insistence of suPPty is a problem in this comcates expa de
et opportumconsuming nations that
many
ties
a
leisure
time,
terests
^ Si fja*e fineries be built
greater cultural in-
ana
spec al
y
boundaries.
piants
have
health
purchasing
Consumer
power
inV historical
all-time high. The
personal income level ! of
1960 is at
total
$345.4 billion
reach
taxes
catches
by $44.0 billion,
1955. Even
above
on
has
purchasing
basis real
the oil
is
has
No
been
the
of
could be
flationary pressures,,Our economy,
,
any
demand
should be tempo,-
should
not
opportunity
total growth over the
years. With our present
$35 billion backlog of
rary
the
interfere
and
with
for rapid
next ten
favorable
consumer
potential consumer de-
need and
selling
effort
could pay off in profits as well as
in
a
strengthening of our whole
economy through more adequate
utilization of our productive abil¬
increased
mand,
total
consumer
1
A-i
_
T
J...1
I
•
Industrial
National
of
be
Soviet oil
com¬
of
exports
markets.
Soviet
exp0rts to the Free World
space of about
it has received a great
City,
...
&
Co., Inc., of New York
May
on
1960
27,
poration) at $2
The
.
L
viets
publicly
„Qr~0
1™-+^
ft
law
1
on
Avonna
County Mnn'
itrme^nt nam^
present name
Louis
on
'
_
.
-
_
American Molded
large surrounding area.
a
about 39%
Ml""!
°r
credit
sumer
economic
not
still
be
outstanding
credit
consumer
1970 could
within
the
be
influence in the
expansion of our standard
to
decade
a-powerful
needed
living to utilize our production
ability, to keep our labor force
employed, and to provide the rev¬
enues
for
fense.
a
strong
national
de¬
•
Consumer
Credit
Retail
Conference
Credit
of
Association,
the Na¬
Chicago,
business
from
offices
LaCANADA
nas
has
927
Calif
opened
openea
Foothill
a
a
Lile
&
Co.,
Boulevard
the direction of B. J. Lile.
under
31, 1959, the company served 93,307 customers,
of 7,392 over 1958.
This increase establishes a new
customers added to the company
to
lines in
As
increase
an
record
for
one year.
military establishments served by the company continue
for electric power.
The installa¬
increase in size and demand
tion
early in 1959 of
a 69,000 volt line to serve a new missile firing
increases to six the nearby permanent military installations
being served by the company. LasCruces, New Mexico, ad¬
range
now
jacent to the White Sands Missile Range, continues to grow; its
present population is estimated at 29,500.
The copper industry, which includes,the loca^ .plant of Phelps
Dodge Refining Corporation, an electrolytic refinery, experienced
substantial increase in business during the first part of 1959; a
disagreement with labor resulted in its closing in August,,, 1959,
\
a
„,v
adversely affecting 1959 earnings. Reopening of the refinery on
Feb. 10, 1960 is expected to improve 1960 earnings.
Following is the company's record
over
the past decade:
(Mill.)
% Earned
Share Earnings*
Approx. Range
1960
^
^
^
Ml — •—
^
on
Net Property
40-34
'
Ji
,
1959
$17.3
$1.69
37-30
15.6
1.57
35-22
13.8
1.40
25-20
7.0
1958
Michael Fieldman and First city
^uAhes ^Tre'nrefenUv o/
Securities, Inc. are presently ot-
1957
_
_
.
6.9%
7.7
«
1.22
18-13
7.8
American Molded Fiberglass Co.
1953
9.0
1.06
14-11
7.6
incorporated in the State of
New Jersey on Feb. 5, 1957, pri-
1952
8.1
0.98
12-11
8.2
1951
7.2
0.91
11-8
7.7
1950
6.3
0.87
10-
7.9
Molded Fiberglass
at $1
per
Co.
share.
was
SSJW &
requirements.
..
.
,
a
/ ,f,n 1 ti
and will be
group
the
to
in
,
.
trailer bodies'
will have out-.
canoes corporation
and small
The
standing
750,000
shares
of
com-
giving effect to the
stock,
mon
Union to °
feHnT" Th^Tot.a 1 does'not
™Port include opt'ions totaling 90,300
Thus, even if Soh
Tf *1,,
f th
ontions are
Soviet
1 1
wv
1
4-
+V»A
fllrrA
Q
exportable surpluses.
there
the
that
1 -I
is
bulk
indica¬
every
Soviet
of
oil
exports to date have been commercially, rather than politically,
t
f 840,300
j
shares outstanding.
be used for new advertising;facilishowroom $25,ties; $25,000 for
000
for
$30,000
promotion;
for
purchase of new molds, dies and
equipment; $25,000 for inventory
purchases; $10,000 for developThe Soviets are using men^ 0f other items; and $60,000
their oil as a relatively efficient £0r general corporate purposes,
means
of obtaining imports of
commodities which they vitally
ry,
t
i
|_l*
need for their internal developDe
J* UOIlKUn
ment. In an effort to obtain outlet On July 1st the firm name of F. J.
for their oil they have had to of- Connelly & Company, 44 Wall St.,
fer price discounts, but these are New York City, members of the
motivated.
no
8
l
•
j
'
1
♦Adjusted for 2-for-l splits in 1951 and 1957.
The
company
normalizes
tax
savings
resulting from
accel¬
erated
depreciation. The credit for interest charged to construction
year amounted to $321,000, or about 160 a share, compared
with 120 in the previous year; with the current completion of the
last
large
new
generating plant it appears likely that the credit will be
smaller this year.
s
■
;<
Earnings for the 12 months ended April 30, 1960 were $1.81, ;
up 13% over the previous 12 months. However, a stock dividend
of 1 share for 15 was paid June 2, resulting in a dilution of nearly '
7%, and based on the new number of shares earnings would be '
reduced to about $1.70. For the calendar year 1960 earnings are
estimated at about $1.75.
Judging from the excess generating
capacity which the company will now enjoy as a result of the new
steam plant, it appears likely that share earnings can continue to
increase at a substantial growth rate over the next three or four years.
• ■
'<
^
•' ;;
During the past four years the company's average compounded
gain in share earnings was 9%. The stock pays $1.16 to yield 2.9%.
The
price-earnings ratio is about 24 times the latest earnings (as
adjusted for the stock dividend) which compares with recent P-E
ratios for larger Texas growth
South
utilities of about 30 for Central &
West, 29 for Texas Utilities, 28 for Houston Lighting and
for Southwestern Public Service.
26
multiples of 30-35
The Florida utilities sell at
or more.
greater than any new New York Stock Exchange, will
^
would
have
to
highly competitive situation and
would
like to conclude
with a brief summary.
to J. J. Conklin &
Company. Frank J. Connelly, Jr.,
offer in be
today's highly competitive
I
"
ambitious
have
energy
Lastly,
Petroleum
changed
general partner in the firm, will
become a limited partner on the
same
date.
T7
^
rW™
rirst rargO KJpens
FARGO, N. Dak^ - First Fargo
Corporation has been formed with
the Black
conduct
securities business. Of-
ficers are Frank W. Pearson, Pres-
look forwaJclq to tke growth. iden^ and Treasurer;' Edwin S.
coming
over this entire period the Free Darson, Vice-President, and Philip
decade as one of dynamic
demand for gas could
Mc¬ SYRACUSE, N. Y. — Accredited
& Young, Inc. is engaging Investors Services, Inc. has been
^
..
in- B. Vogel, Secretary.
Keown
in
a
Mich.—Renshaw,
securities
business
from
of¬
.
formed
with
offices
at
fices in the Buhl Building. Robert James Street to engage
F. McKeown is a principal of the curities business.
1960-753
in
a
se¬
firm.
Building to
offices in
a
Accredited Investors
Renshaw, McKeown
DETROIT,
can
World
customers.
of Dec.
9.9
far from
Summary
branch office
orancn onice
population growth in the
1954
anyTuture
Now
The continued
is reflected in the increase in the number of
area
I
important as time goes on.
New Lile & Co. Office
(after adjusting for splits) to about 40 bid in the recent
7.7
as
*
.
''
1950
22-18
requirements.
Stephan Marc Lane.
a
1.22
1445
at
participant in
11.0
market.
111., June 6, 1960.
In
short,
Soviet
competition
causes
problems wherever it apJ. F. Douglas Opens
pears but, at the moment, it is
EAST MEADOW, N. Y.—John F. just one additional element in a
Douglas is engaging in a securities
a
1955
,,
entrant
is available
(par 100)
the'
befTre0mthen46tdhdrAnnubayi ^nt'erna^na" generally
tional
power
development; and the company
regional power pooL
7.5
cremental
tion
Subject to hydro conditions, additional
23-19
»
growth
with the peak load of 213,000 kw. The new 80,000
Plant is expected to be placed in operation
Power
over-the-counter market.
U LUblV
Of the net proceeds, $25,000 will
probable dis¬
cretionary spending power of con¬
sumers in 1970—yet the doubling
shortly.
Qfriplr Offpypfl
exerdsed in full> there wiu be a
would
Newman
Revenues
internal Soviet Bloc re-
out of line with the
kw
of its power requirements last
effective capability of 263,000
an
1.36
Enu?™
China
and
-
gas or
12.4
$51 billion level.
billion of con¬
company produced 98%
its two steam plants having
Year
double the present yiet oil it is possibletargets are atproduction that the rap d
tamed,
oyer
no
1956
attaining
the proportions of a "flood." Sec¬
ondly, we must remember that
looking
It has
fering 300,000 shares of American
very
a
That total of $107
The
year,
^
+ri
The company's revenues last year
residential, 28% commercial, 12% industrial, 15%
miscellaneous services of any significant amount.
(
rlnPT>0*mSS
are irrigation farming and
smelting and refining, raising of livestock
El Paso is the trading and transportation center
sales to public authorities and 6% miscellaneous.
1 AUCIgiaop ^u-
satisfy their ever growing
at
and oil refining.
for
Major industries
copper
marily for the purpose of engag¬
ing in the manufacture and sale
development plans and of
fiberglass
swimming
pools,
still
b?!b
lites
1959
8
rSmt
oo-m/
St
assumed
Qct
Thus, Soviet Bloc supplies
mand.
raising,
The
incorporated
was
nPiawarp
£***
exported last year came to
less.Jthan 2% of Free World de¬
by 1970, the consumer credit po¬
tential and need could reach $107
Inc
inc.
cotton
share..
per
company
nndpr
?^SP^Ve' In the
P^th,.
^0J00 bar"elg dJly tha| the'So-
deficient
of
New Mexico for 20%.
*
has enjoyed the rapid growth typical of Texas
utilities, with revenues increasing 173% during 1950-59 and share
earnings 94%. The price of the common stock has increased from
150,000 shares of common
stock (par one cent) of VickersCrow Mines Inc. (a Delaware cor¬
nio
looking forward to a po¬
tential production of $750 billion
of
area extends about 100 miles along
Valley. The service territory has a popula¬
tion of about 382,000 of which 325,000 is in metropolitan El Paso.
Operations in Texas account for 80% of revenues and those in
The company
offered
expressed
*.
Mexico; the service
from the Government's Rio Grande
lV^lACl O V^I U W
*
competitive problems posed
existence of Soviet suppjies on WOrld markets, but it is
occontidi
essential +I1Q+ we lfppni Ihpm
that
keep them ir»
in
And
•
and New
the Rio Grande River
is also
the
by
powerful force in
checking inflation through making
p 0 s si b 1 e increased productivity
and lower costs per unit.
1961 could be
TXT
the
\/lf>lzp"»*Q_iVnTTr
the
major task facing
today. Increasing
demand by 10% in
the
is
economy
would
TJ
consumption to
increased
productive
our
Entry
Now I do not want to minimize
So expansion of
ability
*L-
before
Conference Board, New York City.
Sakier
publicity, and fears have
that a flood of
cheap Soviet oil may be about to
engulf the Free World oil industry-
are
our
Oil
consideration
a
World
years,
been
itymatch
U
Piercy
out
deal of
slowdown ip^con-
that
ever,;
sumer
in
year
six
fundamentally sound, how-
so
All
energy.
"tighter
there oped in the short
further renewal of in-
a
of
sources
with
averaged 300 000 barrels
~,
avfare law on Sept. 1,
year averaged ^uu,uuu oarreis, 1959^ under the name Gama Mines,
y\ volume has been of this Inc to expiore for and nffipp
*JiCe vir ually all develproduce
export
ft* nrinrinai
last
nVtifi
artifi-
i«
is
1960-61
in
industry
impact
I
jpnianH
demand
U.S.S.R.
without
Bloc 0ll
-
curtailed
come
appraisal of the prospects of
Free
on
$92.29 in January 1960 reached an
all-time high and were 21% above
rtinenmar
consumer
rtrvws
with
competition
Company
supplies electricity to El Paso (which contributes
about two-thirds of revenues) and 40 other communities in Texas
company
8 in
oil
^he
cially
situation
Weighs
was
manufacturing
in
earnings
A
future
shins"
opportunities. Average weekly
•
The
kw compared
most
industry will all
this
plete
is
it
strengthen
hu^b'SS.'T.
15%,
power
which
1955
above
i
/\
caused
thought of as a boom year in sales
Tf
If
should
all, the 1960's will unquestionably
be years of prosperous growth for
the petroleum industry.
companies to
markedly
improve
their
efficiency. I am. confident that we in
capita
per
a
up.
AVS
in the
or
for
other
This
areas.
spare
Actually,
there
is
a
hidden
blessing in this spare capacity sit' I 'V\
uation.. The intense competition
quarter of 1959. At this level our
total real purchasing power after
correction for price changes, was
iqw
going through
capacity may be
worked off, however, as demand
quarter of 1960, or $18.0 bil¬
above the level of the first
higher
exporting
refinery
an
$397.4 billion in April 1960 was
$18.4 billion or 5% higher than in
1959, in spite of the slow down.
Disposable personal income after
6%
that
readjustment
present
new
facilities
already existing elsewhere in the it
.
lion
aggressive and modern and the
El Paso Electric
were
needs.
first
These
duplicated
The industry is
petitive industry.
re-
within their na-
tional
a
OWEN ELY
,
Form Ernst Wells Inc.
Ernst Wells Inc. has been, formed
to engage
in
a
securities business.
Offices will be located
at 15 Wil¬
liam Street, New York City.
Murray Woodbrow Opens
YONKERS, N. Y.—Murray Woodbrow
is
engaging in
business from
Broadway.
a
securities
offices at 30 South
j
32
The Commercial and Financial Chronicle
(2832)
the
tion,
Our Reporter on
The
GOVERNMENTS
sized
shadow
area
in
must
CHIPPENDALE, JR.
JOHN T.
which
the
do
today
nounce
in
which
new
will
it
of
money
which
is
fiscal (year
July 1. The
the
commences
on
be
be
market
Government
continue
to
for
our
on
The
'
to
Long-term borrowing
business firms are also
not to so marked a
degree. Prices of corporate equity
issues have been volatile so far
money
costs of
close to
1959, but in general,
equity financing remain
the
will
fiscal
neriod
iM the
have
has
hS
nas
it
it
obtain
of
been
had
nad
Gov¬
the
much
much
funds
is
nave
aone
a
the*
tneir
The fact that the Treasury
market very frequently,
the
in
either
for
refunding
or
new
money purposes, does not give the
market very much time to digest
the
securities
which
have
been
used for the
meeting of maturities
or
the
raising of needed cash.
Evidently there will not be very
much of'a
of
change in this pattern
operation
decrease
,
in
there
interest
.
.
„
long-term
unless
.
ra&s
.
.
interest
limit
which
money
between
$3,000,000,000
obtained in
issues
or
and
part through a
which
are
being
four
in
years
Treasury does
have
too
much
impending
surprise
to do
Working Capital of United States
not
appear
there
desire
to
whenever
in
it
is
to
al-
rT
+
is
Tt
c?
Bills
Demand
m
although
shaded
likely to
large
side
some-
contract
is
and
much
of
at
a
corporate
the
end
rough
meas-
liquidity,
of
March
was
in
spite of the beliefs that the supply of such debt will be increased,
Bank
this
clearings
^
fnr
+bp
June
*
25
cjties'of
,,
flich ft
will
1959.
The decline in liquidity
seasonal
at
$29,513,187,044
needs
you
telling the
quoted.
are
influence
fame week in 1959. Our comparatlve summary for the lead*ng
money centers for week ended
25 folloWs
June
(000 omitted):
are
some
of
tax
$15,778,282 $12,542,487 +25.8
1,202,210
1,247,235
Chicago-
rare
Chronicle bound sets
your
missing. Prices will be gladly
serve
your
-
orders
4
steel
for
be
not
in
double.
may
This Week's Steel Output Based
On
The
54.8% of Capacity
American
Institute
erating
Iron
that
the
steel
rate
of
Steel
and
announced
the
op¬
compa¬
nies
will average- *97.1% of steel
capacity for the week, beginning
June
27
equivalent to 1,560,000
tons of ingot and
steel castings
tion
of
1947-49).
These figures
with the actual levels of
*108.3% and 1,739,000 tons in the
week beginning June 20.
compare
gining
to
for last week be-
June
20, 1960 was equal
of the utilization of the
61.1%
Jan.
1, 1960 annual capacity of
148,570,970 net tons.
Estimated
for
percentage
cast
based
this
week's
that
on
fore¬
capacity
is
still
are
hurry to resume
melting operations — even on a
limited scale. They will give de¬
mand a chance to catch up with
supply.
Normally, the holiday would be
long weekend—starting at mid¬
night on Friday, July 1, and end¬
ing at midnight on Monday, July
a
Steelmakers
4.
hearths
would
20% " of
lost,
or
about
week's output.
inventories
high this
and
poor
finished
of
steel
the shutdowns
year,
steelmakers
furnaces
idle
resume
midmonth.
vacations
will
through
others will not
until
the
extended.
be
Some
*137.9%.
♦Index
age
of
production is based on
prodction for 1947-49.
weekly
aver¬
keep
July
10;
production
Mills
repairs
or
Metalworking Industry Optimistic
On Second Half of 1960
solid
A
down
will
for
stay
of
in
confidence
by
the
who
men
metal¬
manage
working.
Steel
magazine
asked
6,100
of metalwork¬
ing plants how they think their
plants will fare in 1960's second
general
half.
managers
They believe:
Sales
(in
dollars)
will
climb
3.8% above those of the first half.
for
all
of
1960
will
rise
5.1% above the 1959 level—giving
metalworking
lion
record
a
bil¬
$152
year.
Profits will improve but not in
proportion to sales.
Prices will hold almost steady on
the average—although most man¬
agers
fare
see widespread
continuing.
Costs
down.
vote
second half business has been cast
Sales
is
demand
Because
will
open
Four of 21 turns would
be
mill
tap
Sunday but would not
them
again
until
early
on
Tuesday.
A month ago the operating rate
(based on 1947-49 weekly produc¬
tion) was *107.4%.and production
1,726,000 tons.. A year ago the
actual
weekly
production
was
placed
at
2,215,000
tons,
or
any
.
.
will
rise
price warp
\
labor
as
wins
.
down wold cost them sales.
ing
open
in
Telephone REctor 2-9570
Stay¬
enough
offset
higher
generate
may
.
that point the way to
upturn
an
in late summer:
Automotive
companies
be-
are
ginning to place orders that indicate
a
to
cutbacks have
,
Employment will edge up—with
small
the biggest gains coming in
an abnormal
lethargy
Their
market
is
of
big
failure
factors
steel con¬
to support
the
principal rea¬
son
for the present low state of
steel operations.
;
Unfortunately,
t h e " mazagine
comments, there is little reason to
expect
a
significant change
in
their ordering. Here's why:
with
warehouses
are
inventory and sales
loaded
are
not
good.
The railroads
are
not
scheduling
worst month
year
for pro¬
and
shipments, the order
be as large as June's.
may
are
Name
This
ing—or
to produce—it.
competitors abroad have the
labor
force,
the raw materials,
equipment, and the
capital to compete—and they get
the
of
those
resources
cost,
the
at
far
below
metalworking
our
weekly
said.
Electric Output 3.4% Above
1959 Week
The amount of electric energy
the ingot rate will
Steelmakers operated distributed by the electric light
furnaces
last
week
at
61%
and power
capacity, down 1.3 points. Out¬
put was about 1,739,000 ingot tons.
The
scrap
market, is
getting
support from exports. Third quar-ter
Japanese
requirements will
exceed 750,000 tons, .while Eng¬
land plans to import 100,000 tons.
ended
Domestic
kwh.,
demand
prospects
are
still
unpromising.
Steel's
scrap
price composite on No. 1 heavy
melting grade remained at $31.33
a gross ton for the third week."
A
big growth in instruments
and- related
ies
metalworking product
a foreign firm produc¬
planning
week,
of
and
a
and there's
expected to book
sizable tonnage toward the end of
the month for September delivery.
two
backlogs fast dwindling.
probably be the
of the
Automakers
big car building programs. In
fact, freight car orders are low
any
markets, Steel said.
most
their
these
It
tons.
drop again.
orders.
the
the
"low.
lower.
Our
entry
,
even
or
of
capacity (vs. 61%
in June, 70% in May, 80% in April,
and 91% in March). July produc¬
tion will be about 6.7 million ingot
duction
,
.
50%
55%
While July will
inventory cutbacks have to end
J
year:
expects July operations to average
high noint in October,
a
buildup of auto production
Steel
Care of Chronicle, 25 Park Place, New York
7, N. Y.
In¬
equipment
plants.
And unless these traditionally extra business to
Comments from managers indi¬
More
important steel consumers come costs.
important, it may
in with big orders, the late sum- prevent losing valued customers. cate that U. S. metalworking is
Steel predicted that next week facing the toughest competition in
mer upturn is not going to come
close to boom size, the magazine the ingot rate will hit bottom for its history in the fight for world
pay-
•
EDWIN L. BECK
1
3.7
+
not talking about a major reversal
*n *be*r buying policies,
sumers.
■
interested—do not delay. Write
years you are
-
%
1959
1960
New Yo,k__
the
holiday,
metalworking weekly,
July
trailing shipments, producers will
are
The summer vacations and other
Be prepared with complete sets to better
clients. It pays!
the
for
$24,998,984,424
against
in
mills
said.
charge
ments.
YOUR OPPORTUNITY.
If
18.1%
be
corresponding
stand
totals
is
available.
obtain
to
the
of
those
above
poss"blf
clearings
weeiciv
for
States for
the United
is
ended
week
cTearings
Working, against
limited time there
will
week
tPwraDhic advices from the
steel
a
the
steel
the
usual
than
longer
of
of
Since
ago.
year
a
for
Steel,
ghow an increase compared with
degreT othe/lnvestoS"^such*5.. rec<Md'$872 billlon'atlhe S.nd°of sleel ordering
For
Look
wake
.
4
Shutdowns
Weekend
shutdowns
Week Ended June 25
com-
part reflects the sharp increasein inventories coupled with liquidations of trade payables and the
not
more
related
54.8%.
Mills to Extend July
about
41%
the past week or
so, still
the
Steel
the
^0r near-term ob- PaJ^d with 44% at the end of
e
on
/.
of flat-rolled prod¬
good.
Holiday
current liabilities,
..,
ligations,
in
i
+
The net working capital of U. S.
is
for $2.4 billion of this decrease, says.
The ratio of these two items to
The Iron Age lists these signs
spring
a
possible
so.
reasury
what
•
Billion
U. S. Governmenti secuirties declined $3.6 billion during the first
quarter to a level of $57.1 billion
at the end of the first quarter,
Manufacturing firms accounted
this
is
jsse-ts, each advanced by
billion over the qua te
corporations, excluding banks and
ure
i
i
*
$1.9
Up
with a rise of $900 million,
Combined holdings of cash and
length.
latitude
venture,
that
ways
recent
cu
in
crease
However, in spite of the fact that
the
rise
of production
ucts
r>„rront
,
about
and
prices
and
in net working capital reflects an
But some mills
that normally new gains, marketing budgets are
Pft_Uivp si„ns! of a maior steel
increase of $2.0 billion in total
A^ust are hTrd to find shut down for two weeks in July boosted, research and develop¬
are
not going to do it this year. ment efforts get more dollars.
current assets while total current
Aae reoorts
Manufacturing capacity will be
liabilities remained little changed 1
lron Ape repo
They
are
going
to
continue
from the level of the prior quarThe national metalworking working—not because of an up¬ boosted 4.7% with much of the
terManufacturing firms ac- weekly says that the big steel turn in demand for their products increase coming as a byproduct
counted for about half of the in- users, other than automotive, are but because they fear that a shut¬ of modernization programs. •
should fall in the
intermediate-term
range,
with
guesses that they will be between
two
of the
the major factor in the
balance of payments shift.
exports,
has held up well and the
outlook for continued high rate
market
.
a
issue, probably a tax
anticipation obligation. The other
talked
extension
an
a
and miscellaneous
able,
0
with a $3.8 billion deficit
reported for 1959.
Further improvement was recorded in the
trade
figures
for
April
which
show
<
.
_
gain of $1.9 billion since the end Philadelphia
1,167.000
1,149,000 + 1.6
of 1959, according to estimates Boston
1,011,014 , 815,311 +24.0
made public by the Securities and
signs Lacking of Major Upturn
Exchange Commission.- This rise
jn steel Order
the
short-term
issue
adTSe
has
i"|"r®nuea?0mPani®S- T°"nt®d n°
billion on March 31, 1960,
the talk which is being heard that
the financial district expects this
be
strument
Actual output
auto¬
week
The flat-rolled
encouraging.
were
Preliminary figures
vforeiSn pay:" complied by the Chronicle, based
been reduced
balance
nn.
$3,500,000,000. It is evident from
to
J^a5e
pared
,
of
Treasury will raise is estimated to
be
OBE's
$130.7
new
relatively strong.
magazine notes that
motive orders in the past
The
£}veJy» accounted for the: ad. an
previous refinding that the
Corporations
entirely.
The
steel operations can come
creases,
was
this' (based on average weekly produc¬
steel
the
five
.
a
a
eliminated
°r
come
If
time.
same
market can
a fast recovery.
In addition,
retail buying holds up or in¬
if
INDUSTRY
,
a
but ?0tIn the ^
quarter, this balance was close
?o
$3 billion annual rate, com-
the
or
.A
rate
Changed
is
should
declines
the
almost
be
1980 than it
Productivity will climb 62%.
in
reversal
any
make
,Bank Clearings Rise 18.1% For
U* Si babmc<r of mternational paymentS
™proved, so.far thls
^
ments
more
more
witn
is
lease
overhanff
investors^have'donf with
investors
at
aufte
seasonal
almost
happens,
the quarter. Gains of $2.2 billion
an(*
5:10a lr\
®
turing and trade groups^ esp -
postwar lows.
Already noted in
another
market for
monev
solll Ana
spen. A^
the
to
beginning
very
r
About
which
of
■
'
but
lower
any
Billion
cash
new
ernment
Seek
to
expect
at
_
Continued from page 4
in
$3.5
•
STATE OF TRADE AND
market.
Treasury
to
orders, inventory buildup and end
obligations.
Governments.
long
'v'C
■
expected and, for
effect
a
has
building.
|
Against the pessimistic outlook,
the magazine points out that the
positive
factors
of
automotive
issues,
is Government bonds, there
long-term
the
about 12%.
not picked up
run
will
this year. Employment will more
than
double,
reaching
716,000.
expected and there is little rea¬
as
to
costs
important
or
10%
Construction
son
for
about 8
of the steel total. Tradi¬
only
running
tionally, they
obligations
should be
for maturity pur¬
products
tubular
of
been
manufacture
Co., management
Value added by
times greater in
hands.
back
rate
was
inventories,
to
Again, the return available in corporates and
tax-free - bonds is
larger than the yield one gets in
concerted
real
■.•.-■■■
quite
the present, should not have
have
entirely
their funds in Federal
rekindling of the flames of infla¬
December.
bank
a
Shipments
money
apparently: is
attraction
here
mainly to those investors who
must
have
a
sizable amount of
there
to rebuild
move
time yet. The higher British
some
as
will
issues
sizable
be
is
there
Until
lieve that the demand for the most
liquid
and,
that
for
will be a
demand for Treasury bills.
happening since
temporary
a
considered
is
As
There
need
growing
obligations
a
liquid,
kept
good
short, the other an intermediateterm maturity. There is practically
no
opinion in the financial area
that
a
long-term bond will be
part of the new money operation.
The milling back and forth in
bill
bills.
rates are high enough to
as
its
poses.
pur-**'
attract those with funds that must
deal with one segment being
the
evidently
long
make
to
Treasury
short-term
are that the new money
will be obtained through a pack¬
guesses
age
of
chases
first
the
raise
continue
zations
done
charitable organi¬
funds and
tual
is expected to an¬
(June 30) the way
Treasury
Government
of
consulting firm.
products in
distributor
Thursday, June 30, 1960
Rucker-Nickels
The oil country goods market is
feeble and no recovery is in sight.
the
raising and refunding of securities
as they come due.
This seems to
mean
that purchases of the mid¬
dle-term
The
the
bulk
is
finished
of
dealer and
good
a
this
because
ventories
obliga¬
under
.
high in¬
stocks
been
.
has high
The appliance industry
of steel and very
market
intermediate-term
have
tions
BY
short-term
should be good.
.
products over the next
dacades is predicted in the
second of six
prepared
metalworking stud¬
for Steel by Eddy-
industry for the week:
Saturday, June 25, was1
estimated
at
according to
Institute.
kwh.
.
;14,213,000,009 kwh.,'
the Edison Electric"
Output
above
that
160,000,000
was
of
the
previous
week's total of 14,053,000,000
and
showed
or
a
3.4%
kwh.;
gain of 464,000,000above
of'the
that
comparable 1959 week.
1960 Car Production Already
/ Close tp Output for 1959
.
Model Year
,
*
In
keeping with plans to build
600,000 cars in June for > only the
third
time
in
history, U. S. auto
production
makers increased their
Volume 191
Number 5964
The Commercial and Financial Chronicle
...
(2833)
1.8%
in week
ended June25, search Department.
The
report coffee prices edged up fractionWard's Automotive Reports said. reflects tonnage handled at more ally.
Although cocoa volume
than 400 truck terminals of com¬ showed
Production of 140,154 automobiles
little
change from the
mon
carriers
of general freight
compared with 137,641 last week
prior period, prices were modwhen the industry's 76,000,000th throughout the, country.
erately higher.
post World War II car was built.
In the same week last year 127,217
cars were assembled..
and declines
Gains
by
Lumber Shipments 0.7
Ward's
as
plants worked four days or less
and
others five days, Falcon and
planned six-day opera¬
tions.
Scheduling gave the Ford
filled
compact car a record 12,643 com¬
4.7% below production.
were
Rambler
cattle
For
set April 11^16.
The statistical agency said Gen¬
Motors Corp. accounted for
42.6% of the week's U. S. car out¬
eral
added
said
model
week's
the
brought
output
1960
the
ders
cumulative
week
stocks.
below
service,; added
1959 model
tributed
the
the new
compact
1.9%
were
above.
Decline in Business Failures in
Week Ended June 23
Commercial and industrial fail¬
the
from
23
high of 353
preceding week, reported Dun
& Bradstreet, Inc. Although casu¬
area
to
gone
28.3% in the entire 1959 model
vs.
$5,000
remained
more
or
considerably
declined
to
256
for
down
were
Detroit
in
Divco
and
in¬
and
vacation
ventory realignment, respectively.
Freight Car Loadings 10.3% Below
with
v,
freight for
the week ended June 18,
1960,
totaled 649,830 cars, the Associa¬
tion
of
This
nounced.
74,448
revenue
Railroads
American
cars
was
below
in; 1959
corresponding'week
an¬
above
their toll of 33
of
Forty-one
nesses
the
a
year
failing
liabilities in
had
the
wholesale
busi¬
excess
of
Wholesale Commodity Price Index
Hits Lowest Level in Five Years
Reflecting
lower
flour, lard,
grains,
scrap,
prices
on
steers, lambs,
the general com¬
the modity price level hit the lowest
but level in over five years last week.
23, the Daily Wholesale
June
increase of 21,820 cars or 3.5%
above the corresponding week in
On
1958.
Loadings in the week of June
18 were 1,367 cars or two-tenths
of 1% above the preceding week.
There
were
highway
the
(which
an
or
trailers
ended
week
week's
11,239
one
were
cars
revenue
(piggyback) in
June
11, 1960
included
in
1959
the
This
was
29.6%
corresponding week of
and
5,500
or
cars
above the 1958 week.
Inc., stood
(1930-32 = 100), the low¬
since June 6, 1955 when
at 270.99
level
est
it
276.86
a
95.8%
Cumulative
On
270.81.
was
on
the
corresponding date
year ago.
Despite heavy rains and damag¬
that
total).
over-all
increase of 2,570 cars or
above
Commodity Price Index, compiled
June 27, the
index stood at 271.10, compared
reported with 271.84 a week earlier, and
more
weather
in some
growing
areas, wheat harvesting picked up
and trading was limited; this held
ing
ices appreciably below the pre¬
ceding weeit. Both domestic and
pi
loadings for the first 23 weeks of export buying of wheat lagged.
1960 totaled 242,407
for an in¬ Lagging flour sales and slow ex¬
crease
of
65,785 cars or 37.2% port buying resulted in a slight
above the corresponding period of d'p in rye prices.
1959, and 133,513
above
in
the
1958.
or
122.6%
corresponding
period
TherP
cars
were
53
class
I
U. S. Railroad systems originating
this type traffic in the current
Corn
corn
light and
holding
somewhat below a
receipts
transactions
prices
were
were
slow,
week earlier. There was a
marked
dip in volume in oats and prices
week compared with 49 one year were fractionally lower.
Reflect¬
ago and 40 in the corresponding ing slow
oil and meal markets,
week
of
1958.
Inter-City Tru^k Tonnage
soybeans prices moved down mod¬
erately from the preceding period.
Except for some scattered or¬
ders, flour trading remained dull
and
prices were down slightly.
tonnage in the
week
ended June 18, was 5.8% Export transactions in flour were
below the volume in the corre¬ also sluggish. Sales of rice to both
sponding
week
of
1959,
the domestic and export buyers were
5.8% Below 1959 Week
Intercity
American
Inc.,
was
truck
Trucking
announced.
1.5%
behind
Associations, steady, and prices remained un¬
Truck
tonnage changed.
that of the pre¬
vious week of this year.
Although
the
held
within
1962 warrant
warrant.
Sixth Street. Mr. Brown,
who has
a
units
in
sugar
and
one
1964
one
portion of the
the sale of
net
from
will
be
used
by
the
the
com¬
pany's subsidiary to increase
holdings of mortgages placed
the
"shell"
company.
homes
sold
by
The balance of the
will
ceeds
be
added
its
on
the
pro¬
to
working
capital and used for general cor¬
porate
purposes.
Bevis Shell
Homes, Inc., Tampa,
Fla., is engaged principally in the
construction
which
block.
in some
or
The
finished
E. Brown
Maxfield
homes
homes,
constructed
concrete
cases
are
completely
the outside with doors,
on
windows,
"shell"
of
residences
are
of wood
declines,
price index,
food
major
proceeds
by
trim
screens,
.
-
,
and
out-
&
Dun
corresponding date last year.
quoted higher in
Commodities
wholesale
this
cost
week
Jp IpgE
were
general
week
bad
s
a
unit, at
redemption prices ranging from
Corp., of New
sometime in July plans
Philadelphia
0fferjng of $175,000 of KenPetrochemicals, Inc. 7% 10-
convertible subordinated dedue April 1, 1970 and
year
bentures
shares
55,000
tureg
in
^
be Qffered at 1QQ%
and
Th
company
the
under
jujy
1959;
^
was
Plawy
of
of
as
incorporated
Deiaware
that
n0% to par, and for the sinking
fund at the then current redemp-
the stock.at $3.50 per share.
on
it
date
aCqUiredj jn exchange for 450,000
tion price, plus
in each case.
Gains'
SovuL
draperies
a
■me
ine
was
than
a
linens
JLc
of^o?
and
somewhat
coverings,
down
were
year ago.
total
tail trade
22
Purchases
floor
appliances
from
furniture
outdoor
sense? ^
in
stock
capital
and
con-
dollar
aoiiar
volume
volume
ot
01
rere
the week ended June
to 4% higher
according to spot
unchanged
year ago,
able
Ucense
havj
respect thereto
with
been
granted
to
+4; East North Cellto
+ 3; Pacific Coast —2
to +2.
'
Nationwide Department store
show
an
increase
of
3%
period last year. In
For the four weeks
business
N!
from
Lane.
United Planning Corp., The James
Company and Mutual Fund Sales
Co., are offering today (June 30)
83,000 shares of Transistor Specialties, Inc. common stock (par
cents)
$3
at
per
share.
The company is engaged in the
design and manufacture of elecoffices at 29 tronic devices such as transistor checkers, various transistorized
regulated
power
supplies, and
*
.
.
transistorized
o
Mineo Investment bees.
the
range
of
digital
100 KC>
in
x MC and
counters
Ralph Mineo is engaging in a se-
same
99
wall
period in 1959 while the
period showed a
for
Pariser
increase.
According to the Federal Reserve
System -department
store
sales in New York City for the
June
18
a
7%
in-
reported over the like
BEACH, N. Y. — Michael
Corp. is engaging in a
securities business from offices
129 West Olive Street.
ended
over
the like period last year,
For the four weeks
ending June 18
Clarence Pope Opens
MINOT, N.
Dak.—Clarence Pope
a securities business
from offices in the Braasch Bldg.
at js engaging in
Radice Securities
Serina & Vadala
Victor
securities business from
60 East Coral Center.
C.
BRpOKLYN, N. Y
Serina and Mario Vadala are enoffices at gaging in a securities . business
from offices at 1226 Liberty Ave.
In the preceding FT. LAUDERDALE, Fla.—Radice
June 11 sales were Securities Corp. is engaging.in a
period last year.
week
general corporate purposes.
r™-n
rorm r ariser L,orp.
2%
was
from offices at
New York City,
pa
LONG
ended
Street,
ended June 18
Jan. 1 to June 18
crease
business
curities
1% increase was registered over
5%
Firm Offered
10 MC.
The address of the company is
Terminal Drive, Plainview, L. I.,
preceding week, for June 11, under the firm name of Ralph N. Y.
The net proceeds will be used
increase of 2% was reported. Mineo Investment Securities.
1960,
above the like
the
Stock of Elect.
Y.—John C.
McGregor is conducting a securi-
HICKSVlLLE,
Glow
Department store sales on a
country-wide basis as taken from
the Federal Reserve Board's index for the week ended June 18,
^
n
ties
3% June 18 Week
Sales Up
a
lnc"
^lcmer
J. C. Mcvjregor Upens
tral and West North Central—1
an
Upon
Inc.
Central 0 to
the
$2,795,000.
of
outstanding capitalization of
the
~nrrmanv
by
Dun
&
Regional
estip
.
rj
.
O
mates varied from the comparable
* • A. /.uniga VJpenS
1959 levels by the following per- Felix A. Zuniga is conducting a
centages: South Atlantic
+3 to seCurities business from offices at
+ 7; New England,
West South 75 East Fifty-fifth Street, New
Central, and Mountain +1 to -f5'» York City.Middle Atlantic
and East South
Bradstreet,
ing,
company will consist of
of Kenrich CorP' a Predecessor $2,346,000 of indebtedness and
corporation organized in 1947. The 1,420,000 shares of common stock.
company was organized primarily
otber members o£ the offering
f° manufacture aromatic petro- group are; McCarley & Company,
leu™ resins developed and pat- f
Goodbody & Co.; McDaniel
™ ihe Tnam®.. °AA°f™y Lewis & Co.; Courts & Co.; HanMobil °i.1 S?" ^ byan irrevoc- rahan & Co Inc
°n? °f the Kidder & Co> Inc" and A" M"
company's founders,
collected
estimates
sales
completion of the current financ-
women's^ap- vertible notes, and related debt the
occurred
narel
Gf
sbares
outstanding
and
issued
0£
95
interest
For the year 1959, the company
its subsidiary had consoli-
n
slightly from the similar
up
accrued
and
i+u
+se+ i°a
pncJr Penocl> shares of its common stock, all dated
the total dollar volume was
and
and
time prior to their
any
of class A common
rich
retail
over-all
respectively,
1964>
entitle the holders to purchase as
J-yCUCllO.
stock (par 20 cents). The deben-
the
Day sales promotions
holding
31>
Dec
T^pTjpri ^
expiration dates, one share of
commoh stock and one $8 par 9%
subordinated sinking fund debenture, at a unit price of $9.50 plus
accrued interest on the debenture,
The debentures will be redeemable at the company's option at
Fjrst
.
weather
The 1962 warrants and the 1964
warrants expire Dec. 31, 1962 and
ZZ
y0rk City
offset by exten-
were
areas
sive Father
this
of
effects
The
some
-
I^0rth Carolina and Tennessee,
i
•
KPHriPH
( 1TTPT»
\
use.
"
Tr
kJLUvyiVj
living index.
,
jIII^CIGIDiIIR
1
^
f
States of Alabama, Arkansas,
Florida, Georgia, Mississippi,
.
-p.-,
y,,
beef,
week
volume
picked up moderately at the end
These findings are based on the of the week, prices finished un¬
weekly survey of 34 metropolitan changed from a week earlier. Fol¬
areas conducted by the ATA Re¬ lowing a moderate rise in trading,
sinking fund debenture and
associated
been in the investment business side painting, but without gutters,
in Los Angeles for many years, drain spouts, flashing material,
was
formerly
with
Hemphill, chimneys, or flue systems. Only
moderately below that of a year Noyes & Co. and prior thereto in isolated cases does the company
ago. On June 21 it stood at $5.91, was manager of the trading de- finish and
complete any of the
up
0.3% from the prior week's partment
of the Los
Angeles homes it constructs. Operations of
$5.89, but 3.3% below the $6.11 of office of Shields & Company.
the company are carried on in the
by Dun & Bradstreet,
an
loaded with
become
common,
9% subordinated
par
Bradstreet,
Inc., edged up fractionally from a
week
earlier,
but
it
remained
compiled
ago.
$100,000 as against 45 in the pre¬
ceding week.
of and steel
decrease
a
10.3%
or
has
stock, one $8
Calif.—Maxfield
White, Weld & Co., 523 West
After three consecutive
•
For June 18 Week
'■
Loading of
ANGELES,
Brown
E.
It is not a cost-ofIts chief function is
exceeded the 223 of this size last
Ward's said truck output held
to show the general trend of food
year.
There was a dip in small pnees at the wholesale level.
steady, totaling 25,818 units vs.
25,720 last week. Two Chevrolet casualties, those with liabilities
liVnn,
Retail Trade Up Slightly From
plants were idled for inventory under $5,000, to 40 from 44 a week
adjustment and White Motor in earlier although they remained
from 309 in the previous week but
year.
Cleveland
consists of five shares of
(special to the financial chronicle)
LOS
lard, sugar, cocoa, raisins,
prunes, and hogs.
Lower in price
above the 256 in the comparable
were flour, wheat, corn, rye, oats,
week a year ago, they were below
gan as a whole have accounted for
barley, hams, bellies, coffee, cot17.6%
of
a
1,481,659
volume, the 335 in 1958 and down 5% from tonseed oil, and potatoes.
boosting the state's share of en¬ the prewar level of 310 in the
The index represents the sum
tire U. S. auto output to a three- similar week of 1939.
total of the price per pound of
Failures involving liabilities of
year high of 31.3% so far this year
31
raw
food stuffs and meat in
alties
the
compact models which in Michi¬
assembly * has
u
Fractionally From Prior Week
in
the
Detroit
of
fell to 296 in the week ended
ures
June
to
cars.
25.2%
Some
auto
WP
'
the
with
in
orders
new
It at¬
run.
importantly
gain
White
Inc> and associates are offering
today (June 30) 200,000 units of
securities of Bevis Shell Homes,
Inc. at $15.50 per unit. Each unit
i
i
production.
car
entire
the
ttt
,
trading range and showed
little change from a week earlier
1959, production of re¬
mills was 3.9%
below;
shipments were 5.8% below; and
output—1,035,590 units
1—already has passed
974,000 assemblies posted in
the
W1 Lil
•
narrow
porting
of June
as
ttti
t
,
The
Cotton / prices
that in the Detroit area alone 1960
model
ttt»
gish.
above; orders were 3.3% above.
Compared with the corresponding
to
passed by mid-July.
reporting
G. H. Walker & Co., Beil & Hough,
-q
June 21, exports came to about 6,previous 306,000
bales, as against 2,539,000
week ended June 11, 1960, pro¬
during the same period last year.
duction
of
reporting mills was
3.2% above; shipments were 6.1%
Wholesale Food Price Index Up
5,238,237, only 6% short of equal¬
ing the entire 1959 model run total
of 5,568,000, a mark that will be
The
6.8%
were
Compared
car
production
year
of gross
i _t
p*
IV13,XI16lCl JDrOWH
up
year-to-date, shipments with 97,000 a week earlier and
reporting identical mills were
47,000 in the corresponding week
4.3% below production; new or¬ last
year. For the season through
tively.
Ward's
to 29%
Sees. Offered
1959.
over
For the
17.6%. American
Studebaker-Packard
and
1.8%,, respec¬
and
8.3%
moved
was
of
and
Corp.
Chrysler
Motors
Co. 29.7%
Motor
Ford
Un¬
reporting. mills
or
.
increase
1959
reporting softwood mills, un¬
filled orders were equivalent to
on
the
New
York
Cotton
Ex¬
16 days' production at the current
change.
Exports for the week
rate, and gross stocks were equiv¬
en^ed last Tuesday were esti¬
alent to 52 days' production.
mated at 82,000 bales, compared
was
put,
orders
amounted
Previous peak of 11,893
pletions.
the
slightly in some
markets, steer prices dipped moderately from the prior week as
Lumber shipments of 453 mills
trading
continued
to
lag.
Hog
reporting to the National Lumber prices showed little change durTrade
Barometer
were
0.7% ing the week despite limited volabove production during the week
ume and lower supplies.
A modended June 18, 1960. In the same
erate decline in lamb prices ocweek, new orders of these mills curred as transactions were slug-
during
the
week,
the industry op¬
erated in a pattern of short and
overtime work weeks.
While
10
industry
assembly
slight
said,
were
QViaII
JLJv/VlO Ollt/ll
3%
a
Although the salable receipts of
% Above
Production During Week
Ended June 10
line
car
reported over
period, and from Jan. 1
to June 18 showed a 5% increase
33
34
The Commercial and Financial Chronicle
(2834)
.
.
ADDITIONS
* INDICATES
Securities
Now
in
ISSUE
NEW
of the large number of issues
NOTE—Because
July
the SEC, it is becoming
increasingly difficult to predict offering dates
with a high degree of accuracy. The dates shown
awaiting processing by
index
the
in
and
in
the accompanying detailed
not, in
are
(Richard
general, to be considered as firm
O'Neill
(George,
Battery
(Willis E.
Common
Brook
(Sandkuhl
&. Co.,
$126,600
Inc.)
Common
Inc.)
A. K. Electric Corp.
(Mainland
Offering—Imminent.
Ave., Nev&York, N. Y.
Securities
Corp.
Corp.)
Control
Data
Dynamic
shares
&
Co.)
$300,000
Agricultural Research Development, Inc.
May 23 (letter of notification) 120,000 shares of common
Price—$2.50 per share. Proceeds
—For construction of buildings, purchase of equipment
and for working capital.
Address—Wiggins, Colo. Un¬
derwriter—Ladet & Co., Inc., Denver, Colo.
Edgerton, Germeshausen & Grier, Inc
Empire Gold Mining Co.
April 12 (letter of notification) $300,000 of 6% income
notes to be offered in multiples of $100 each. Price—At
face value. Proceeds—For mining expenses.
Address—
Farrington Manufacturing Co
stock
(par five cents).
Alaska
Alaska.
Underwriter — Stauffer Investment
Service, 1206 N. W. 46th Street, Oklahoma City, Okla.
Juneau,
•
Alderson
Research Laboratories, Inc.
(8/15-19)
(Laird,
(Kidder,
cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office—48-14 33rd St., Long
Island City, N. Y. Underwriter — Morris Cohon & Co.,
New York, N. Y.
(Cyrus
J.
June
9, 1960, filed 200,000 shares of common stock and
$500,000 of first mortgage bonds, due 1963 through 1972.
Price
$5 per common share, and bonds at 100% of
principal amount. Proceeds—To purchase the outstand¬
ing shares of the Cloverdale Spring Co., and the balance
for the general funds. Office—Guildford Ave., Baltimore,
Md. Underwriter—Weil & Co. of Washington, D. C.
&
120,000
Co.)
Lawrence
Sons
&
Inc.)
Futterman
Corp.
shares
(Van
Alstyne,
Fennekohl
(B.
660,000
&
Inc.)
Co.,
90,000
shares
C.
Morton
&
Co.,
Units
Inc.)
$376,000
Hotel Corp. of America.
Allied Bowling
29
Centers, Inc.
$750,000 of sinking fund
filed
(Bache
<fe
Co.
and
Bear,
Stearns
&
Co.)
$1,500,000
Midwest Technical Development Corp
(Offering
stockholders—underwritten
to
Co.
and
Piper,
Namm-Loeser's
(Offering
Jaffray
Inc.
by
Hopwood)
&
Common
Common
.
Thalmann
&
217,278
Co.)
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
stock. Price—$108 per unit. Proceeds—For general cor¬
porate purposes. Office—Arlington, Texas. Underwriter
—Rauscher, Pierce & Co., Inc., Dallas. Note — This
offering has been postponed.
•
Ameco Electronic Corp.
•
the
for
Corp.
sale in
25
cents)
purchase of an additional 50,000 shares/
to offer these securities for pub¬
consisting of two shares of stock (par
warrant. Price—$6.25 per unit. Pro¬
ceeds—To cover an initial installment on the purchase
price of two additional bowling centers; for furniture
and fixtures thereon; and the balance to be added to
working capital and be available for general corporate
purposes. Office—400 38th St., Union City, N. J. Under¬
& Co.
Nebraska
and
(W.
Glass
Pierce,
Lynch,
Oxford
& Bodine)
Common
underwriting)
$1,119,510
Co
Fenner
&
Smith,
Inc.)
Langley & Co.
and
Courts
Co.)
shares
240,000
Republic Ambassador Associates
(Lee
Higginson
Corp.)
!
Sea-Highways,
Associates)
(Laird
Wells
Industries
,•
Garrett
Co.)
Kletz
&
Co.)
(Richard
&
Smith,
Inc.)
100,000
Dalto
—
&
Kenrich
Co.)
Common
by
Co.,
Inc.)
a.m.
Bonds
EDT)
(Bids
American Can
June
Co.
July 14
Varian
$3,500,000
1960, filed $40,000,000 of 30-year debentures.
Price—Offering price and interest rate to be supplied by
Gulf Power Co
amendment.
Gulf Power Co
Proceeds—For the
reduction of short-term
loans and the balance for the general funds. Office—100
Park Ave., New York
City. Underwriters—Morgan Stan¬
ley & Co. and Clark, Dodge & Co.
American Electronics, Inc. (7/18-22)
June 13, 1960, filed 300,000 shares of common stock
(par
$1). Price—To be supplied by amendment. Proceeds—
For
general
and
debt
corporate
reduction.
purposes
Office
including construction
1725
West
Nov.
30
Frontier
Life
(11:00
(Eastman Dillon,
July 8
American
League Professional Football Team of
Boston, Inc. (7/11-15)
June 3 filed 120,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds
For
—
Continued
a.m.
EDT)
page
35
American
(Merrill
Co.;
Debentures
Gas
Co
Common
Inc.;
Offering
New Britain
Safticraft
Merrill
to
and
Lynch,
Reinholdt
Pierce,
&
Fenner
stockholders—243,600
Corp.
Co.)
Can
16,000
&
Co.,
Inc.)
(Estabrook
R.
L.
&
by
Inc
Co.;
Day
F.
and
Lynch,
Pierce,
....Preferred
Fenner
Forgan & Co.
Smith,
&
and Dean
Clark,
Inc.;
Witter & Co.)
First
Boston
Cold Lake Pipe Line
&
Dodge
12,000 shares
Common
...
(Capital
(Myron
$825,000
Corp.)
123,808
shares
Common
Co., Ltd
Fieldman)
200,000
shares
Accumulation
Corp.)
$300,000
.—Common
A.
Lomasney
&
Co.)
$600,000
Wilier Color Television System, Inc..
..Common
(Equity Securities Co.) $242,670
July 18
$300,000
'
•
(Shields
S. Moseley & Co.; Tupker, Anthony
White, Weld & Co.) 120,000 shaies
& Weeks)
(Monday)
American Electronics, Inc
Professional Football Team
Common
(Hornblower
& Co.
&
Pacotronics, Inc.
(Monday)
of Boston,
—Common
Smith, Inc.; Clark, Dodge &
and Dean Witter & Co.) 264,000 shs.
Fenner
Common
(Smith, Barney & Co.)
American League
'
Compressed Concrete Construction Corp.__Common
shares
United Research Inc
July 11
Capital
Co
(Michael
Common
O'Neill
.
——
Pierce,
Glore, Forgan
Common
—
(George,
&
shares
stockholders—underwritten
&
Bonds
$30,000,000
(Friday)
Lynch,
Gardner)
Gas Light Co
to
CDST)
m.
a.
Basic, Inc.
Brothers;
(Lehman
-
,
Co.—.——
American Can Co;_——
(Merrill
$24,000,000
American Rubber & Plastics Corp.—
on
'
$5,000,000
Union Securities & Co.)
Putnam
Union Securities Investment Co., also of
Memphis, which
will receive a selling commission of $1.20
per share.
Offering—Imminent.
•
(Friday)
Insurance Co.
200,000 shares of capital stock. Price—$8
per share.
Proceeds — To increase capital and surplus.
Office—1455 Union Ave., Memphis, Tenn. Underwriter
$5,000,000
July 15
(The
Laclede
$175,000
Corp.)
(Thursday)
Associates
Co.; Glore,
Smith.
fileci
EDT)
Bonds
(Offering
American
a.m.
Mississippi River Fuel Corp
Sixth
St., Los
Angeles. Calif. Underwriter—Shields & Co., New York
City.
—
Preferred
(11:00
Debentures
Inc..
(Offering to stockholders—underwritten by Dean Witter
& Co.) 216,645 shares
(Thursday)
July 7
(7/13)
16,
10:00
$192,500
Corp.)
Philadelphia
Gas
Common
Inc
$900,000
Sierra Pacific Power Co
(10:30
(First
$100,000
Co.)
Philadelphia
Northern Illinois
—Common
....
&
Kenrich Petrochemicals,
Dillon,
Eastman
130,063 shares
134.739 shares
(No underwriting)
Petrochemicals,
Common
&
Debentures
1
Equitable Leasing Corp
Co.
•
Co
(First
Sierra Electric Corp
Sloss
115,000 shares
Common
'
.
Common
.
(Marron,
Common
(Courts
—
Securities
Bonds
$10,000,000
a.m.)
(Wednesday)
$50,000,000
stockholders—underwritten
Union
$700,000
Inc.)
Co.,
&
Corp.
'
.
shares
Bonds
EDT)
Papercraft Corp.
to
..Common
Corp.—
Bruce
Skyline Homes, Inc
(Crowell, Weedon & Co.) $1,200,000
(Offering
shares
350,000
(Tuesday)
July 12
July 13
Illinois Bell Telephone Co
Liberty Records, Inc
(7/15)
Co.)
&
Central Illinois Electric & Ga* Co
$450,000
June
16, 1960, filed 12,000 shares of 7% cumulative pre¬
ferred stock (par 25), and 264,000 shares of common
stock ($12.50 par). Price—To be supplied by amendment.
Proceeds—To the estate of Paul Moore, selling stock¬
holder. Office—100 Park Ave., New York City.
Under¬
writers
Merrill Lynch, Pierce, Fenner & Smith Inc.;
Clark, Dodge & Co.; Glore, Forgan & Co.; Dean Witter &
Common
(Dempsey-Tegeler
(Rodman & Renshaw)
Common
m.
$1,250,000
Inc.)
Co.,
&
(Morgan Stanley & Co. and Clark, Dodge & Co.) $40,000,000
Fenner
a.
Common
Class A
Corp
(11:00
Sloss
(11:30
Common
(Wednesday)
(Merrill Lynch, Pierce,
Com.
$450,000
Inc.)
Corp
American Can
July 6
Inc.?
'
$2,336,960
Corp.)
Crow
United States Boat
by Schweickart &
Industries, Inc
G.
Development Corp
Co.
_
(Marron,
Capital
shares
Corp
(Michael
D. Blauner & Co.,
shares
145,000 shares
(Thomas Jay Winston & Co., Inc.) 300,000 shares
Win-Chek
&
(Pistell,
Common
stockholders—underwritten
—Common
—It
and Milton
Inc.
Co.,
Reeves Broadcasting &
Common
Triumph Storecrafters Corp
to
Lee &
20,000
Texas
one
American Can Co.
Polycast Corp.
Swimming Pool Development Co., Inc.—.Common
$300,000
(Hardy & Hardy and First Southeastern Co.)
..Debentures
D. Elauner & Co., Inc.)
and Milton
Co., Inc.
&
Sav-A-Stop, Inc.
$294,000
...
Maher
R.
Lee
-
—
v.$400,000
Preferred
Marshall)
Inc
(John
(M. L.
$10,000,000
Co.)
&
shares
.....-Debentures
....
(William R. Staats
Co. and
1,000,000
Co.)
&
Polycast Corp.
Units
$10,000,000
Rosauer's Super Markets, Inc
&
Hammill
I
.
Capital
Eache &
Staats & Co.;
R.
Pauley Petroleum Inc
Common
&
Units
30,000 units
& Co,, Inc.)
Weld
Metropolitan Development Corp
(M. L.
shares
210,045
$10,000,000
EDT)
m.
a.
Ore Ltd.——.
Common
Manufacturing Co., Inc
C.
shares
50,709
..pebentures
$51,000
Inc.)
Co.,
Bonds
11:00
(White,
(William
..Common
Crouter
stockholders—no
to
Obear-Nester
(Merrill
Townsend,
Holman &
A.
.Common
—
68,000 shares
Inc.)
Co.,
&
,
Co
Iron
$360,000
Consolidated Mills Co..
writer—Hill, Thompson & Co., Inc., New York.
•
Corp.)
700,000
units
and
(Drexel
(Offering
(7/25-29)
The company proposes
lic
Securities
Gas
Liberian
Waltham Precision Instrument Co., Inc..-Common
Bowla-Bowla
April 15 filed 100,000 shares of common slock and war¬
rants
(First
Navigation Computer Corp.
Holman
A.
Shearson,
Common
*
Magic Boats, Inc.—
shares
Corp
(Foster
Co., New York, N. Y.
American
Packaging
(7/25-29)
May 19 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
For general corporate purposes.
Office — 37 E. 18th
Street, New York, N. Y. Underwriter—Palombi Secu¬
rities
National
Glass
Laclede
Ladenburg,
by
Common
$295,000
Co.)
&
Boats, Inc.—
Magic
(Bids
Shearson, Hammill
561,500 shares
stockholders—Underwritten
to
(Offering
debentures and
Glass
$503,000
Redpath)
&
Corp...
(R.
Debentures
:
—
Dec.
Steel
Federal
(R.
Hampshire Gardens Associates—
(B.
Parker
(Westheimer
..Common
—Units
Drug Co., Inc..
Drug Fair-Community
shares
_
150,000 shares",
Redpath)
Parker &
(Auchinclcss,
-
$110,000
Inc.)
Inc..—Common
Drug Fair-Community Drug Co.,
Co.)
&
(Auchincloss,
Co.)
—Units
Co.,
Investment
&
Securities
(Fidelity
Debentures
Cathers
Class A
Noel &
—Units
Drugs Associates, Inc
;
General Sales Corp.—
$500,000
Inc.)
$325,000
Bros.)
(Bertner
Common
$297,500
Brawley,
and
Inc.—.—....Common
Murphy & Co.,
(Pearson,
Common
Company,
.Common
City
Consolidated Research & Mfg. Corp
$6,000,000
&
Allegheny Pepsi Cola Bottling Co.
&
$300,000
Edwards Engineering Corp
May 26 (letter of notification) 100,000 shares of common
stock (par 10
Peabody
Construction
(Vickers, Christy & Co., Inc.; First
Securities, Inc.) $300,000
Common
Bissell & Meeds)
(Sandkuhl
Peabody & Co.) $50,000,000
Corp. and Kidder,
Conetta Manufacturing Co.,
E. S. C. Electronics Corp
—.Notes
—
Company
Common
„
Cohon
$262,750
Corp.)
Securities
Commonwealth Development &
125,000
Inc
(Morris
■
Common
—
Credit Co..
Commercial
(First Boston
Common
Witter & Co.)
Films,
•
Jeffrey-Robert
$287,500
Corp
(Dean
Chemtree Corp.
(Havener
Common
and
—.Common
C. F. C. Funding Inc
$300,000
Chemical Packaging Co., Inc.—
May 4 (letter of notification) 100,000 shares of common
stock (par one cent). Price—$3 per share. Proceeds—
For general corporate purposes. Office—231 Front St.,
Brooklyn, N. Y. Underwriter—Hilton Securities, Inc.,
$297,000
Magaril Co.)
J.
J.
(Darius, Inc.) $150,000
Units
Co.,
Common
and
Inc.
Company,
$2,010,000
Corp
Burnside &
$5,000,000
Co., Inc.——
Labs.
&
..Common
—.
Co.)
&
(Sterling,* Grace
Co.)
133,000 shares
Hammill & Co.)
Employees Corp
Aviation
shares
Inc....
Reid & Co., Inc.) 150,000
Corp.
Industry, Inc.—Common
Gray
'
Cellomatic
580 Fifth
75,000
Bruce National Enterprises,
offering dates.
•
Co.)
Cafeterias for
of the underwriter
items reflect the expectations
but
Automatic
&
Common
shs.
—Common
Co
Sterilizer
(Shearson,
Associated Testing Laboratories, Inc
(Drexel
REVISED
(Glore, Forgan & Co. and Fulton,
Arnoux
ISSUE
PREVIOUS
ITEMS
•
American
CALENDAR
(Tuesday)
5
SINCE
Registration
1960
Thursday, June 30,
.
200,000 shares
•
&
Common
&
Co.)
Common
300,000
shares
Astrotherm Corp.
(Ross,
Lyon
&
Units
Co.,
Inc.
and
Globus,
Inc.)
$616,000
Avnet Electronics Corp.;
(Hemphill,
Avnet
Noyes
Electronics
(Hemphill,
&
Common
Co.)
150,000
Corp
Noyes
shares
Conv. Debentures
&
Co.)
$2,000,000
!
•
,
191
Volume
Number 5964
Cubic Corp.
.
Capital
Stone
&
Co.)
(R.
Holman
A.
Dynamics
&
50,000
shares
Co.,
Inc.)
Corp.)
Federated
Bros.
&
Co.)
Coburn
B.
Common
Inc.)
Seskis
Patent
National
(Globus,
Wohlstetter)
and
$500,000
Electric
Pyramid
-
-
-
(No
Ross,
Lyon
(11:00
(Offering
July 19
Cohon
&
(Tuesday)
(Bids
July 27
-
(11:00
EDT)
a.m.
July 20
Atlantic Coast Line RR
(Bids
July 21
Southern
be
to
Read &
August 1
(Bids to be
July 25
invited)
(E.
Bowla
(Ross,
Bowla
Inc.)
Brothers)
Campbell
&
350,000
Units
(Paine,
Inc
(J.
&
Hogle
...
Co.)
Com,
National
Pearson
.^.......Common
(R.
Deluxe Aluminum
; >
Peck)
&
Evans Rule
Inc.)
Co..
(A.
C.
&
Goelet
Co., Inc.
shares
Globus,
Inc.)
Lyon
Globus,
Co.,
Inc.
and
Inc.)
70,000
Globus,
August 8
Norwalk
Itemco, Inc
(Morris
Co.)
&
Co.
Continued from page
&
Co.
and
Laboratories,
American Mortgage
Investment Corp.
April 29 filed $l,8uu,uo0 of 4% 20-year collateral trust
bonds and 1,566,000 shares of class A non-voting com-,
mon stock,
it is proposed that these securities will be
offered for public sale in units (2,000) known as In¬
vestment Certificates, each representing $900 of bonds
and 783 shares of stock. Price—$1,800 per unit. Proceeds
—To be used principally to originate mortgage loans and
carry them until market conditions are favorable for
disposition. Office
210 Center St., Little Rock, Ark.
American
Penh
Life
105,000 shares of the stock will be three additional shares
for each one share held.
Of the remaining 22,500 shares
the offering will be on the basis of nine shares for each
14 shares
held, and all unsold
be offered under warrants
shares of this block will
granted in accordance with
the company's Agent's Stock Option Plan. Price—$28
per share. Proceeds
To increase capital and surplus.
Office—203 S. 15th St., Philadelphia, Pa. Underwriter—
—
None.
★ American Research & Development Corp.
December 6
Weld & Co.)
Hornblower
(7/11-15)
Weeks, New York City.
&
American
&
St.
Lawrence
Seaway Land Co.
of which
Price—$3 per
share. Proceeds—To pay off mortgages, develop and im¬
prove
properties, and acquire additional real estate.
Office—60 E. 42nd St., New York City. Underwriter—
Jan.
filed
27
538,000 shares of common stock,
350,000 shares
A. J.
to be publicly offered.
are
Gabriel Co., Inc., New York
American
stock. Price
■^-To be supplied by amendment. Proceeds—To be added
to the
general funds of the company and will be avail¬
investment
in
accordance
with
its investment
the management may approve, (a) in new
(b) in company ih'which the issuer has
already invested funds. Office—200 Berkeley St., Boston,
Mass. Business—Registered investment company.
Un¬
policies,
as
projects
and
derwriter—Lehman Brothers, New York.
Bonds
$25,000,000
be Invited)
(Thursday)
(7/11-15)
invited)
of
(Tuesday)
to
common
outstanding preferred stock will be en¬
the new preferred at the rate of one
new share for each 10 shares held. Common stockholders
will be
entitled to purchase the additional common
shares at the rate of one new share for each 10 shares
held.
The record date for both groups is June 23 with
rights to expire on or about Sept. 16.
The debentures
are
convertible into common at $16.67 a share to July
1, 1965 and at $25 a share to July 1, 1970. Proceeds—To
the equivalent portion of bank loans. Office—1900
West Slauson Ave., Los Angeles, Calif.
repay
Arkansas
Valley Industries,
used
to
reduce
short-term bank
—To
•
Arco
Price
10
—
be
supplied by amendment. Proceeds — To retire
increase working capital. Office
St. Louis,
•
Arnoux
Electronics, Inc.
filed 140,000 shares of class A common stock.
To be supplied by amendment.
Proceeds —
Offering—Expected sometime in July.
•
Arden
Farms
Co.
Corp.
(7/11)
stock. PriceFor general
and working capital. Office—11924
their
principal amount.
Associated Testing
The
company
is offering the
preferred shares at $52 per share, and common shares at
$15 per share, initially through subscription warrants.
—
Angeles, Calif. Underwriter—
New York.
Laboratories, Inc.
(7/5-8)
filed 75,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—To retire $100,000 of short-term bank loans, to provide
additional facilities and equipment for plants at Wayne,
N.
25
J., and Winter Park, Fla., and the balance will be
working capital. Office—Clinton Road, Cald¬
added to
well, N. J. Underwriter—Drexel &
Philadelphia.
Astrotherm Corp.
filed $4,000,000 of 6% subordinate debentures,
series due July 1, 1990 (convertible), 44,278 shares of
preferred stock, and 149,511 shares of common stock. The
debentures are to be offered for public sale at 100% of
13
G. Edwards & Sons,
Mo.
May 23 filed 133,000 shares of common
To be supplied by amendment. Proceeds
May
$350,000 for general corporate purposes and the balance
for working capital.
Office—New York City. Under¬
writer
Michael G. Kletz & Co., Inc., New York City.
May
(7/25-29)
current bank loans and
Glore, Forgan & Co., New York and Fulton, Reid & Co.,
Inc., Cleveland, Ohio.
May
Inc.
9, 1960, filed $600,0000 of 6% convertible subordin¬
ated sinking fund debentures and 30,000 shares of com¬
mon
stock, $3 par. $200,000 of the debentures will be
issued to Arkansas
Valley Feed Mills, Inc.; the re¬
mainder of the registration will be publicly offered. Price
Shearson, Hammill & Co.,
be
$35,000,000
titled to purchase
ings and for additional working capital. Underwriters—
will
Bonds
(Minn.)
The holders of
corporate purposes
W. Washington Blvd., Los
completion of a new manufacturing plant. The bal¬
ance
Co.
be invited)
borrow¬
the
$12,000,000
—Dardanelle, Ark. Underwriter—A.
stock (par
$3.33 %:). Price—To be supplied by amendment. Proceeds
—Of the net proceeds
from the sale, approximately
$600,000 will be available to AMSCO Laboratories, Inc.,
a wholly-owned subsidiary, as an additional advance for
shares
150,000
Bonds
be
June
Stereophonic Corp.
filed
20
to
States Power
(Bids
•
City.
April 11 (letter of notification) 50,000 shares of common^
stock (par one cent). Price—$2 per share. Proceeds—•
For general corporate purposes. Office—17 W. 60th St.,
New York, N. Y. Underwriter—D. H. Victor & Co., Inc.,
New York, N. Y. Offering—Imminent.
American Sterilizer Co.
Northern
493,425 shares
—
(7/25-8/12)
June 28, 1960, filed 350,000 shares of common
for
(Bids
Common
American Rubber & Plastics Corp.
May
Co.
$50,000,000
EDT)
$400,000
Inc.)
May 11 filed 200,000 shares of common stock. Price —
To be supplied by amendment.
Proceeds—To selling
stockholders.
Office — La Porte, Ind. Underwriter —
•
March 30 filed registration of 127,500 shares of capital
stock (par $10) being offered for subscription by stock¬
holders of record on April 28, 1960 with rights to ex¬
pire on July 11 at 3:30 p.m. (EDST). Subscription rate on
able
November 3
(Wednesday)
(Wuite,
;
•
Insurance
Bonds
a.m.
Georgia Power Co
—-Conv, Preferred
Corp
—
Underwriter—Amico, Inc.
11
(Thursday)
October 20
Common
Inc
F. S. Mose-
ley & Co. both of Boston, Mass.; and Tucker, Anthony
& R. L. Day and White, Weld & Co. both of New York
City.
(Wednesday)
(Bids to
Harcourt, Brace & Co., Inc
•
—
&
Research
Gold Medal Packing
$500,000
.
Underwriters—Estabrook
Common
100,000 shares
Co.)
Bonds
$16,000,000
invited)
* \
■
Co
(Bids
$11,000,000
be
to
» r
Electric
(Monday)
August 17
34
fi I) v w
October 19
Union
Common
Com.
improvement of the Boston University Field, and the
balance to pay organization expenses and for working
capital.
Office
522 Commonwealth Avenue, Boston,
Mass.
i
Corp.—
(Ernst Wells,
Co.)
(Tuesday)
& Electric Co
(Morris Cohon & Co.) $300,000
125,000 shares
Schrijver
18
(Bids
$100,000,000
Co., Inc
Alderson
Common
and
to
Louisville Gas
Debentures
(Monday)
August 15
Common
—
Cohon
October
EDT)
a.m.
——Debentures
$30,000,000
be invited)
(Bids
(Tuesday)
Co
(Thursday)
Columbia Gas System, Inc
Florida Power Corp
shares
Inter-County Telephone & Telegraph Co
&
October 6
&
Bonds
Line Co
underwriting) $65,000,000
(No
Common
Corp
Street
(Myron A. Lomasney &
(Myron A. Lomasney & Co.) $1,250,000
Witter
$120,000,000
received)
be
Alberta Gas Trunk
75,000 shares
(G. H. Walker & Co.)
35,000
Inc.)
Development, Inc
(Dean
to
(Tuesday)
October 4
50,000 shares
Inc.)
Common
Narragansett Capital
.
Warrants
&
Co.,
Co., Inc.; Woodcock, Moyer,
French; First Broad Street Corp. Russell & Sax and
V. S. Wickett & Co., Inc.) $300,000
Co.;
&
(11
$700,000
Corp.
(Ross,
&
Common
and
&
Products
Aero
Wegard
August 2
Common
and
Common
Holman
145,000 shares
Co., >Inc..)'500,000
Lyon & Co., Inc.
Gulf-Tex
A.
Debentures
Lyon &
Common
Telephone Co.—
New York
(Bids
Corp
Common
Corp..^
Allyn
Netherlands
and
$1,2C0,000
Southwestern Bell Telephone
Goelet Corp.
(Ross,
C.
Debentures
Goelet Corp.
(Ross,
(L.
$330,000
...
Capital
Inc.
Inc.)
Bonds
York Telephone Co
(Bids to be received) $60,000,000
$350,000
Products, Inc.—
(McDonnell & Co., Inc.)
Florida
United
Common
(R. A. Holman & Co., Inc.;
;
Co.,
(Morris Cohon & Co.)
$750,000
Co.,
Co.,
&
New
-Common
Roto American Corp
Common
Products, Inc
He lman
A.
Winston
A.
(R.
shares
102,500
Development, Inc.___Com.
&
Sons)
(Wednesday)
September 28
& Curtis and
$4,125,000
Jackson
&
Bonds
$12,000,000
(11:00 a. m. N. Y. Time)
-Units
Brown
(Tuesday)
September 27
Indianapolis Power & Light Co
Co.) $800,000
Securities
Fricke
Deluxe Aluminum
Units
Globus, Inc.; Reich & Co.;
Godfrey, Hamilton, Magnus
Capital Corp
(Smith, Barney & Co.) 260,000 shares
(Adams
and
Bonds
shares
Chicago Musical Instrument Co..
Colorado Real Estate &
Inc.;
Webber,
Alex.
shares
27,000
Co.,
(Tuesday)
September 20
Products, Inc
(J.
Inc.)
&
Shore & Co.
Common
Burr,
Machine,
A.
Lestoil
$312,500
Buzzards Bay Gas Co
(Coffin
C.
Common
$10,000,000
Public Service Electric & Gas Co
(Bids to be invited) $50,000,000
299,700
Inc.)
Debentures
*
$17,000,000
Utah Power & Light Co
Common
Co., Inc
Co.,
North
&
Corp.....*
(Hill, Thompson & Co.,
Lyon
Harold
Common
American Research & Development Corp
(Lehman
M.
Co
be invited)
to
(Bids to be invited)
Kings Electronics Co., Inc
(Monday)
Corp.......
(Falombi Securities Co.) $300,000
r'-,'!-;.'':rr' V.
American
Dillon,
(Monday)
$6,000,000
Electronic
Ameco
(Bids
Common
by
Light
&
Power
32,842 shares
Co., Inc.)
Electri-Cord Manufacturing
Equip. Trust Ctfs.
~
(Wednesday)
September 14
Utah
Black Hills Power & Light Co
(Offering to stockholders—underwritten
(Thursday)
Pacific Co..
$3,030,000
(Thursday)
$4,315,000
Bonds
(Bids to be Invited) $25,000,000
Equip. Trust Ctfs.
(Bids to be invited)
.Equip. Trust Ctfs.
invited)
(Tuesday)
September 13
•
(Wednesday)
$12,000,000
Virginia Electric & Power Co
(Wednesday)
July 28
Bonds
-
(Bids to be received)
$22,000,000
invited)
be
Co
Telephone
Rochester
Bonds
Seaboard Air Line RR
;.__Bon&3
$5,000,000
to
(Thursday)
1
September
Common
$962,500
Lomasney & Co.)
(Myron A.
325,000 shares
(Wnite, Weld & Co.)
Capital
Lee Filter Corp
Inc.)
& Co.
Southern Counties Gas Co
$400,000
New Jersey Power & Light Co
Weld
Fitchburg Paper Co
Common
Co.)
Common
stockholders—White,
to
Bonds
(Monday)
August 29
$38,101,600
1,140,000 shares
...Common
Wheeler Fibre Glass Boat Corp
(Morris
$35,000,000
invited)
be
Southern California Edison Co
(Bids to be invited) $60,000,000
EDT)
a.m.
$150,000
$291,443.75
,,
,
to
Debentures
El Paso Natural Gas Co
Common
Co.)
&
Co
underwriting)
(Bids
(Tuesday)
Consumers Power Co
Common
&
Development Corp
Inc.
July 26
$300,000
Lamtex Industries, Inc
(Finkle,
-Debentures
Michigan Bell Telephone Co
1,000,000 shares
C. Legg & Co.)
(Tuesday)
August 23
Common
.
(John
Common
Associates,
$564,900
Securities Co.)
(Pleasant
Common
shares
Electronics, Inc..
(J.
..Common
Inc.
Chematomics,
(Equity Securities Co.) $264,900
America
80,000
175,000 shares
Inc.)
Co.,
Variable Annuity Life Insurance Co. of
$300,000
Espey Mfg. & Electronics Corp..
(Sutro
&
Telephone & Electronics Corp.
$255,000
Common
Securities
Treat
35
(Monday)
August 22
.'Common
Inc
■'
.Common
Corp
(Plymouth
Stelma,
(Amos
inc
Custom Craft Marine Co.,
(2835)
The Commercial and Financial Chronicle
.
—
(Hayden,
Dechert
.
Co., New York and
(7/18-22)
24 filed $308,000 of 8% subordinated
debentures, due July 1970, 154,000 shares
May
convertible
of common
stock purchase warrants. The
company proposes to offer these securities in units, each
unit to consist of $100 of principal amount of debentures,
stock, and 46,200 common
Continued
on
page
33
i
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w kv
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<1;
4).
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i.
36
The Commercial and Financial Chronicle
(2836)
...
Thursday, June 30, 1960
j)
.
Vf
■•
Continued from page 35
f
I
♦
exercisable initially
at $2 per share. Price—$200 per unit. Proceeds—To re¬
pay loans, purchase new equipment and the balance for
working capital. Office—Indianapolis, Ind. Underwriters
—Ross, Lyon & Co., Inc., Globus, Inc., and Harold C.
Shore & Co., all of New York City.
50
ffl
t,
m{.
shares, and 15 warrants
common
it Atlantic Bowling Corp.
June 27, 1960, filed 250,000 shares of common stock (no
par.
Price—To be supplied by amendment. Proceeds—
To furnish and equip additional bowling centers, includ¬
in¬
be
used for general corporate purposes, which may include
equipment of additional bowling centers, or the purchase
ing the repayment of any temporary indebtedness so
curred, and for working capital. Any balance will
:j I
3
■'
(»!,•
of
such
R.
others,
I.
Medway
Office—100
McDowell, Dimond & Co., Providence, R. I.
• Automatic Cafeterias for industry,
Inc.
b
(I:
of in¬
and the reduction
Street, Providence,
Underwriters—Sutro Bros. & Co., New York and
}■•
,
from
centers
debtedness.
V
(7/5-8)§
of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
For general corporate purposes.
Office—Dover, County
of Kent, Del.
Underwriter — Richard Gray Co., New
(letter of notification) 42,200 shares
May 31
s.li
i?!
Vf1
Y.
N.
York,
Employees Corporation (7/11-15)
Aviation
(*»•
2,500,000 shares of common stock. Price—$2
Proceeds—Together with other funds, will be
Feb. 8 filed
'
per share.
,y
in
invested
/•>.
!-1.
i
■;
■*'
.
•
>x
the
shares
company's
the
of
three
sub¬
general corporate purposes; and the re¬
maining balance will be used from time to time for
the purchase of all or a substantial interest in or the
formation of one or more other companies engaged in
the business of insurance or finance or to further sup¬
for
sidiaries;
it Bristol Dynamics, Inc.
June 28, 1960, filed 124,000 shares of common stock,, of
which 69,000 shares are to be offered for public sale for
the account of the issuing company and 55,000 shares,
being outstanding stock, by the present holders
and
share.
per
tends
special tools and fabrications.
Underwriter—William David &
•
Brook Labs.
Co., Inc.
Co., Inc., New York.
kuhl
Place, Brooklyn 16, N. Y. Underwriters—Sand-
&
Company, Inc., New York City and Newark,
Co., 37 Wall St., New York, N. Y.
N. J. and J. J. Magaril
•
Bruce National
Enterprises, Inc. (7/5-6)
April 29 filed 335,000 shares of common stock (par 10
cents).
Price—$6 per share. Proceeds—For reduction
of outstanding indebtedness; to pay off mortgages on
certain
rate
property; for working capital and other corpo¬
Office—1118 N. E. 3rd Avenue, Miami,
purposes.
Underwriter
Fla.
—
O'Neill & Co., Inc., New
George,
York.
•
Buzzards Bay Gas
Co., Hyannis, Mass. (7/25-29)
June 7 filed
27,000 outstanding shares of common stock,
to be offered for sale by American Business Associates.
Price
To
—
be
York City.
Avnet Electronics
Corp.
supplied by amendment. Underwriter—
Inc., Boston, Mass.
1960, filed $2,000,000 of convertible debentures,
1975, to be offered for public sale by the issuing
company
and 150,000 outstanding shares of common
stock to be offered for the account of selling stockhold¬
June 15,
\l »•
due
j'll
!'
Price—To
ers.
be
.«*
Of
the
debentures:
supplied by amendment. Proceeds—
to repay short-term bank loans, to
inventory, and for working capital. Office—70
St., Westbury, Long Island, N. Y. Underwriter—
maintain
State
l'i
Hemphill, Noyes & Co., New York City.
ii»
offered
for sale at $5 per share, and 600 units of 6% promissory
notes, to be offered for sale at $212.50.
Proceeds — To
develop a 100 acre tract of land located on Grand Ba¬
I'!!
•
Caribbean
Bahamas
Corp.
Ltd.
hama Island in the Bahamas.
Neb. Underwriter—None.
Omaha,
li ji
ii!
Office—5008 Dodge Street,
Note—The company
states that this offering is to be made to a
ber of investors.
limited num¬
V
^ Bal-Tex Oil Co., Inc.
June 17, 1960 (letter of notification)
class
A
Price—At
stock.
common
be
and
C.
Straus, Blosser & McDowell, Chicago, 111.
offering has temporarily been postponed.
F. C.
Funding Inc. (7/11-15)
(letter of notification) 75,000 shares of common
stock (par 10 cents), Price—$2, per share. Proceeds—For
general corporate purposes. Office—90 Broad St., New
York 4, N. Y. Underwriter—Darius Inc., New York, N. Y.
May 6
Cabana
Pools, Inc.
(letter of notification) 150,000 shares of com¬
mon stock (par 10 cents).
Price—$2 per share. Proceeds
For general corporate purposes.
Office — 640 Fifth
Avenue, New York, N. Y.
Underwriter — Mandell &
Kahn,
Inc., Time-Life Building, Rockefeller Center,
New York, N. Y. Offering—Imminent.
March 31
—
•»!
-Ar California Life Insurance Co.
300,000 shares of
par
($1
per
share).
Business—In¬
resistant
Underwriter—Pleasant Securities
Street, New York, N. Y.
and market high
manufacture
to
exchange resins.
•
Chemical
heat
Packaging Co., Inc.
(7/5-8)
(letter of notification) 115,000 shares of com¬
mon stock
(par 10 cents). Price—$2.50 per share. Pro¬
ceeds— For general corporate purposes.
Office —755
March
16
Brooklyn, N. Y. Underwriters—Mainland
156 N. Franklin Street, Hempstead, N.
Y. and Jeffrey-Robert Corp., 382 S. Oyster Bay Road,
Hicksville, L. I., N. Y.
Utica Avenue,
Securities Corp.,
•
Chemtree
Corp.
(7/11-15)
(letter of notification) 262,750 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For general corporate purposes.
Office—100 W. 10th
April 19
Street, Wilmington 99, Del. Underwriter—Havener Se¬
York, N. Y.
curities Corp., New
Chicago Musical Instrument Co.
(7/25-29)
filed 260,000 shares of common stock (par
$1), of which 40,000 are to be offered for public sale
by the company and 220,000 are outstanding and are. to
be offered for the account of present holders. Price—To
June 15, 1960,
be supplied by amendment. Proceeds—From the public
offering, will be used for normal expansion and possible
acquisitions. Office—7373 North Cicero Ave., Chicago,
Underwriter—Smith, Barney & Co.; of Chicago, 111.
and New York City.
111.
—
Texas
Circle-The-Sights,
March 30 filed
Inc.
165,000 shares of common stock and $330,(10-year 8% redeemable). Price—For
000 of debentures
stock, $1
per
share; debentures in units of $1,000 at their
principal amount. Proceeds—For initiating sight-seeing
service.
Office—Washington, D. C.
Underwriter—None.
it City Gas Co. of Florida
June 27, 1960, filed 120,000 shares of common stock. Price
—To be supplied by amendment. Proceeds —""Together
with other funds, will be used for..repayment of $2,800,000 of bank loans which are expected to exist in such
amount at the time of closing the stock financing, $500,000 to
tion
complete the company's conversion and construc¬
and the balance for general corporate
Office—955 East 25th St., Hialeah, Fla. Busi¬
ness
The company and its subsidiaries distribute gas
through underground distribution systems in the Miami
program,
purposes.
—
June
■
I
To
—
Note—This
•
.
»
May 25 filed 4,500 shares of common stock, to be
It
common stock.
supplied by amendment. Proceeds — To
selling stockholders. Office—601 Marion Drive, Garland,
Tex. Underwriters
Dallas Rupe & Son, Inc., Dallas,
Price
(7/18-22)
—122 East 42nd
Co., Newark, N. J.
May 31 (letter of notification) 108,000 shares of common
stock (par 10 cents) of which 28,000 shares are being
sold for selling stockholders. Price — $2.75 per share.
Proceeds—For general corporate purposes. Office—650
Lincoln
ing stock, by the present holders thereof. Price—$3 per
Proceeds—For general corporate purposes. Office
share.
ion
(7/11-15),
Byer-Rolnick Hat Corp.
May 9 filed 100,000 outstanding shares of
•
it Chematomics, Inc. (8/22-26)
24, 1960, filed 188,300 shares of common stock (par
10 cents), of which 175,000 are to be offered for public
sale by the company and 13,300 shares, being outstand¬
hardware components and
Tower
Grace & Co., New
& Co. Inc.
Weld & Co. (jointly); Blair & Co. Incorpor¬
ated, Merrill Lynch, Pierce, Fenner & Smith Inc. and
Stone & Webster Securities Corp. (jointly),
Bids—Ex¬
pected to be received on July 12 up to 11:30 a.m..
and White,
June
Coffin & Burr,
Office—930
Bldg., Washington, D. C. Underwriter—Sterling,
competitive bidding. Probable bidders:
Stuart & Co. Inc., Kidder, Peabody
Halsey,
$100,000 for research and development of
new
products; and the balance
(about $123,000) for
working capital and other corporate purposes. Office—
219 Alabama Ave., Brooklyn, N. Y. Business—Designing,
engineering, manufacturing, producing, and selling elec¬
trical and mechanical assemblies, electronic and missile
equipment;
plement the funds of the three subsidiaries.
■:\
1
thereof.
Proceeds—$100,000 for expansion
further modernization of the company's plants and
Price—$6
be determined by
14, 1960 (letter of notification) 8,766 shares of class
A stock (par $5) and 4,168 shares of common stock (par
$1) to be offered for subscription by stockholders on
uie basis of .147 shares
purchased for each share of class
area
fied
which are in the process of conversion from liqui¬
petroleum gas to natural gas systems. Underwriter
—Kidder, Peabody & Co., New York. Offering—Expected
'
ill
Proceeds—For
for development of oil proper¬
expenses
ties. Office—Suite 1150, First National Bank Bldg., Den¬
Colo. Underwriter—L. A. Huey & Co., Denver, Colo.
ver,
li
Basic, Inc.
May 26 filed
t
'«»•
123,808 outstanding shares of common
which 81,161 shares are institutionally held.
All shares result from conversion of convertible prefer¬
stock,
of
Price—Related to the cur¬
rent market price on the American Stock Exchange at
time of offering.
Proceeds — To selling stockholders.
Office—845 Hanna Building, Cleveland, Ohio.
Under¬
shares
ence
\ ? ij
'
ft
placed in 1958.
writer—The First Boston Corp.,
r.f
New York.
•
?<
"i
Bausch &
I'll
|.f/l|
3
Street, Rochester, N. Y. Underwriter—Stone & Webster
27,
the
IP1
Ipi
and 7,500 shares, being outstanding stock,
present stockholders thereof.
Price — To be
company
to
repay
to
•
■
short-term
bank
loans
the
proceeds
of which
used for
were
\ ii!
working capital, $100,000 will be advanced
subsidiaries as working capital, and the balance will
Lake
filed
5
Pipe Line Co., Ltd.
200,000 shares of
(7/15)
stock. Price—At
market, at time of offering. Proceeds—For general
corporate purposes. Office—1410 Stanley St., Montreal,
Canada. Underwriter—Michael Fieldman, New York.
common
the
• Colorado Real Estate & Development,
Inc.
(7/25-29)
June
23, 1960, filed 150,000 shares of common stock (par
$2). Price—$5 per share. Proceeds—For general corpor¬
ate purposes. Office — 704 Midland Savings Building,
Denver, Colo. Business—Intends to
engage in the acqui¬
unimproved acreage, the develooment of that
into prepared sites for single-family homes,
Proceeds—To increase capital and surplus
and for working capital.
Underwriter—None.
the sale of those sites to builders and others. Underwriter
$1 per share.
For
working capital. Office—1350 Foothill Road, Boule¬
Salt Lake City, Utah.
Underwriters—Potter In¬
vestment Co.
$15
per
and Whitney &
Co., Salt Lake City, Utah.
Corp.
1960; filed 40,000 shares of common stock. Price
share. Proceeds—To finance the company's anti¬
cipated growth and for other general corporate purposes.
Office—42-15 Crescent
St., Long Island City, N. Y. Un-
writer—None.
•
Cellomatic
Battery
Corp.
(7/5-8)
May 20
teed
(letter of notification) $270,000 of 6% guaran¬
5-year convertible notes and 6,000 shares of com¬
mon
stock
(par 10 cents) to be offered in units consist¬
$90 note and two shares of common stock. Price*
per unit. Proceeds—For working capital. Office—
the development, manufacture and sale of data
process¬
ing equipment, research and service in the field of in¬
formation retrieval, and the
development, manufacture-
300 Delaware St., Archibald, Pa. Underwriter—Willis E.
Burnside & Co., Inc., New York, N. Y.
Monica, Calif. Business-—Engaged in
and
sale
Stearns
of
&
scientific
cameras.
Underwriter
—
Bear,
Co., New York,
• Black Hills Power & Light Co. (7/28-8/11)
28, 1960, filed 32,842 shares of common stock, to be
offered initially for subscription of holders of outstand¬
ing common stock on the basis of one new share for
each
12
shares held. Price—To be supplied
by amend¬
Proceeds—Together with other funds, and funds
hand, will cover the remaining cost of the company's
s
fiscal
t.
ment of
1960
construction
interim
bank
program, including the repay¬
loans obtained for such
purpose
Office—621 Sixth St., Rapid City, S. Dak.
—Dillon, Read & Co. Inc., New York.
1
a
it Cettco Instruments Corp.
June 23, 1960, filed $5,000,000 of convertible
nated debentures due Aug. 1,
ment.
[f
Cold
acreage
ing of
—$100
on
*
•
Feb.
Capital Shares Inc., San Francisco, Calif.
May 3 filed 1,100,000 shares of common stock. Price—
be added to the company's Working capital/Office—1860
Franklin St., Santa
June
ti
in August.
sition
June 17,
stock, of
to be offered for public sale by
common
by the
supplied by amendment. Proceeds—$950,000 will be used
1
Campbell Machine, Inc. (7/25-29)
20, 1960, filed 102,500 shares of outstanding com¬
mon stock
(par $1). Price—To be supplied by amend¬
ment.
Proceeds—To selling stockholders.
Office—Foot
of Eighth Street, San Diego, Calif. Business—The com¬
pany conducts a shipyard business which consists of re¬
pair and maintenance of U. S. Navy and commercial
vessels. Underwriter—J. A. Hogle & Co., Salt Lake City,
June
Cavitron
1960, filed 75,000 shares of
which 67,500 shares are
kl
A stock,
vard,
June
if
stockholders.
Castleton's, Inc.
June 13 (letter of notification) 160,000 shares of com¬
mon stock
(par $1). Price—$1.25 per share. Proceeds—
it Benson-Lehner Corp.
!»■ 4'
i*v
common
$28.55 per share; for common
stock, $5.71 per share. Office—4334 MacArthur Blvd.,
Oakland, Calif. Underwriter—None.
Securities Corp., New York.
,!<'
i
Price—For class
of
amount
same
Rochester and the balance will be used for working
capital and other corporate purposes. Office—63 St. Paul
I'll
b'i
t>K
the
1960, filed $6,657,900 of 4%% convertible sub¬
debentures due 1980, being offered for sub¬
scription by common stockholders at the rate of $100
principal amount of debentures for each 13 common
shares held with rights to expire on July 13, at 3:30 p.m.
EDT. Price—100% of principal amount. Proceeds—About
$5,000,000 will be used to construct new facilities in
ordinated
'*1
«;!
and
Lomb Inc.
May 19,
£< 4
I
held
Utah.
■.9
' t
(7/15)
A
Underwriter
subordi¬
1980. Price—To be supplied
to the general
W. Irving Park Rd.,
Chicago 13, 111. Underwriter — Lehman Brothers, New
York. Offering—Expected mid-to-late July.
by amendment.
funds
•
be
1
Illinois Electric & Gas Co.
filed
(7/12)
struction
$10,000,000
program
of
the payment of some
the company
and
to
provide
for
$5,000,000 of bank loans incurred
to be incurred for;such purposes.
Underwriter—To
dwellings and
commercial
improvements,
and
—Adams & Peck, New York.
Columbia Technical Corp.
May 6 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office — 61-02 31st Ave.,
Woodside, L. I., N. Y. Underwriters—Diran, Norman &
Co., Inc., V. S. Wickett & Co., Inc., and Cortlandt In¬
vesting Corp., New York, N. Y. Offering—Imminent.
Commerce Oil
Refining Corp.
Dec.
16, 1957 filed $25,000,000 of first mortgage bonds dua
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in units as follows: $1,000 of bonds and 48 shares
of stock and $100 of debentures and nine shares of stock./
Price—To
construct
York.
•
be supplied by amendment.
Proceeds — To
refinery. Underwriter—Lehman Brothers, New
Offering—Indefinite.
Commercial
Credit Co.
(7/11-15)
.
June
9, 1960, filed $50,000,000 of senior notes, due July 1,
1979. Price—To be supplied by amendment. Proceeds—
For working capital. Office—300 St. Paul Place, Balti¬
more, Md. Underwriters—First Boston Corp. and Kid-der, Peabody & Co. (managing the books), both of New
York City.
Commonwealth
added
of first mortgage bonds series
due 1990. Proceeds—To be used to provide a portion of
the funds required for present and contemplated con¬
or
multiple
Development & Construction Co.
(7/11-15)
of the company. Office—1700
Central
June
Proceeds—To
of
May 24 (letter of notification) 60,000 shares of common
(par five cents). Price—$5 per share. Proceeds—
For working capital. Office—11th & Main Sts., Penns-
stock
burg, Pa. Underwriters—Vickers, Christy & Co., Inc., 15
William St., New York, N. Y. and First City Securities,
Inc., New York, N. Y,
•
Compressed Concrete Construction Corp. (7/15)
May 9 (letter of notification) 100,000 shares of common
stock (par. 10 cents). Price—$3 per share. Proceeds—For
Number 5964
191
Volume
.
,
.
The Commercial and Financial Chronicle
general corporate purposes. Office — 313 W. Jericho
Huntington, 'L. I., N.-Y. Underwriter—Cap¬
ital Accumulation Corp., Franklin National Bank Bldg.,
Roosevelt Field, Garden City, N. Y.
—For general
Computer Equipment Corp.
June 17, 1960 (letter of notification) 150,000 shares of
common stocK (no par). Price—$1 per share. Proceeds—
For
working capital, market analysis, and research.
Qffice—1931 Pontius Avenue, Los Angeles, Calif. Under¬
writer—Holton, Henderson & Co., Los Angeles, Calif.
March
(2837)
corporate purposes. Office—1700 Niagara
Street, Buffalo, N; Y. Underwriter—R. A. Holman & Co.,
Inc., New York, N. Y.
Turnpike,
•
it
« record
two
—
•
,
Detroit Tractor,
Ltd.
May 26 filed 1,375,000 shares of class A stock. Of this
stock, 1,125,000 shares are to be offered for the com¬
pany's account and the remaining 250,000 shares are to
be offered for sale by the holders thereof. Price—Not to
exceed $3 per share.
Proceeds—To be applied to the
purchase of machine tools, payment of $95,000 of notes
and accounts payable, and for general corporate pur¬
poses. Office—1221 E. Keating Avenue, Muskegon, Mich.
Underwriter—To be supplied by amendment.
of common stock. Price—
acquired for sub-division and shopping center devel¬
Consolidated Research & Manufacturing Corp.
Diversified
(7/11-15)
quisition of Hope Homes, Inc., Browntown Water Co. and
Cantor & Goldman Builders, Inc., with the balance to
be used as working capital.
Office—29A Sayre Woods
shares in units of one share of each class.
unit.
Proceeds—For equipment, sales
Shopping Center, Madison Township, P. O. Parlin, N. J.
Underwriter—Lee Higginson Corp., New York.
Offer¬
•
12, at 4:30 p.m. EDT. Price — 100% of principal
amount. Proceeds—For the company's construction pro¬
Aug.
(jointly). Bids—Expected to be
11:00 a.m. (New York Time).
Co., 16 Wall St., New York City,
Drug Fair-Community Drug Co.,
|
Water Co.
(letter of notification) 3,500 shares of
(par $1). Price—$28.25 per share. Pro¬
ceeds—To go to a selling stockholder. Office—95 Ex¬
change St., Portland, Me. Underwriter—H. M. Payson &
it Consumers
June 21,
1960
common
stock
Co., Portland, Me.
it Continental Boat Corp.
(letter of notification) 100,000 shares of
(par 10 cents). Price—$3 per share. Pro¬
ceeds—To purchase raw materials, advertising and for
working capital. Office — 1815 N. E. 144th St., North
June
15,
common
1960
stock
Miami, Fla. Underwriter—J. E. Coburn Associates, Inc.,
New
York, N. Y.
(7/5-8)
June 2 filed 125,000 shares of common stock.
PriceTo be supplied by amendment. Proceeds—To repay $1,500,000 of bank loans and the balance to be used for
working capital and general corporate purposes. Office
Control
—501
Park
Data
Corp.
Avenue,
Underwriter-
Minneapolis, Minn.
Dean Witter & Co. of
Minneapolis, Minn, and New York
City.
Country Club Corp. of America
April 29 filed 200,000 shares of common
stock (par 10
repayment
mortgages,
cents). Price—$3 per share. Proceeds—For
of outstanding debt, including payment of
and miscellaneous accounts payable; for
general corporate purposes and construction of new fa¬
cilities.
Office—1737 H.
Street, N. W., Washington,
D. C. Underwriter—A. J. Gabriel Co., Inc., New York.
taxes,
notes,
it Coyle's Voting Machine Co.
June
17,
common
—To
1960
stock
build
an
(letter of notification) 21,629 shares of
(no par). Price—$10 per share. Proceeds
inventory
working
Columbus, Ohio. Under¬
of machines and for
capital. Office—42 E. Gay St.,.
,
-
*
Inc.
(7/11-15)
10, 1960, filed $500,000 of subordinated sinking
debentures, due Sept. 15, 1975, with attached war¬
for the purchase of 25,000 shares of common stock
June
fund
rants
A, $1
par,
and 150,000 additional shares of said stock.
and warrants will be offered in units
These debentures
debenture and a warrant for the
purchase of 25 shares of stock. Price—$500 per unit, with
the price of the stock to be supplied by amendment.
Proceeds—Of the stock issue, the proceeds from the sale
of 50,000 shares will go to selling stockholders. The pro¬
ceeds from the remainder of the registration will be
added to the issuer's working capital and, together with
other funds, will be used to repay indebtedness and to
open 15 new stores in 1960-61. Office—1200 South Eads
St., Arlington, Va. Underwriter—Auchincloss, Parker &
Redpath, Washington, D. ,C.
consisting of
a
$500
it Dunbar Development
June
22,
1960
(7/18-22)
"
8, 1960, filed 50,000 shares of capital stock
of
which 25,000 shares are being offered for the account of
the company, and 25,000 shares for the account of sell¬
ing stockholders. Price—At-the-market at time qf offer¬
ing. Proceeds—For additional working capital. Office—
June
5575 Kearney Villa Road, San Diego 11, Calif.'Under¬
writer—Hayden, Stone & Co., New York City.
Custom Craft Marine Co., Inc. (7/18-22)
March 28
mon
(letter of
stock (par 25
notification) 85,000 shares of com¬
cents). Price—$3 per
Park
Cohon
Bissell
corporate
purposes.
Office —534
Bergen
Palisades
Park, N. J. Underwriter—Laird,
Meeds, New York, N. Y.
&
East Alabama
Express, Inc.
(letter of notification) 77,000 shares of common
(par $1). Price—$2.50 per share. Proceeds—To
April
1
repay notes
payable, reduce equipment purchase obliga¬
tions, accounts payable and for working capital. Office
—109 M Street,
Anniston, Ala. Underwriter—First In¬
vestment Savings
Corp., Birmingham, Ala.
• Eastview Racquet Club, Inc.
June 22, 1960 (letter of
notification) 4,900 shares of com¬
mon
stock (no par).
Price—$10 per share. Proceeds—
For general corporae
purposes.
Hackensack, N. J.
•
Office—210 Main Street,
Underwriter—None.
Edgerton, Germeshausen
&
.
Grier, Inc.
|
(7/5-8)
1
May 5 filed 120,000 shares of common stock (par $1) of
which 20,000 shares are now
outstanding and are to be
offered for public sale by the holders thereof and
100,000 shares are to be offered
by the
Price—To
company.
be supplied by amendment. Proceeds—For
general cor¬
porate purposes. Office — 160 Brookline Ave., Boston,
Mass.
•
Underwriter—Kidder, Peabody & Co., New York.
Edwards
April
Engineering Corp.
8 filed
85,000
shares of
(7/5-8)
common
stock
of
which
70,000 shares are to be offered for the account of the
issuing company and 15,000 shares, representing out¬
standing stock, are to be offered for the account of the
present
holders
thereof.
Price—$3.50 per share. Pro¬
corporate purposes including sal¬
aries, sales promotion, moving expenses, and research
and development work.
Office—715 Camp Street, New
Orleans, La. Underwriter—Sandkuhl & Company, Inc.,
New York City and
Newark, N. J.
ceeds—For
general
Manufacturing Co., Inc. (8/1)
(letter of notification) 99,900 shares of common
(par 10 cents). Price—$3 per share. Proceeds—
75,000 shares of
$4 per
share. Proceeds—For general corporate purposes?. Office
—237 Sylvester St., Westbury, L. I., N. Y. Business—Pur¬
chase of land and building of homes. UnderwritersNetherlands Securities Go., Inc., and J. A. Winston &
class A
common
stock
(par
10 cents). Price
—
Co., Inc., New York, N. Y.
Durox of
April 11 filed $650,000 of 7% first mortgage bonds and
120,000 shares of common stock (par $1). The offering
will be made in units of one bond ($100 principal amount)
and 20 shares of common stock or one unit of 50 bonds at
principal amount plus accrued interest. Price—To be
supplied by amendment. Proceeds—For additional plant
and equipment and to provide working capital to com¬
mence and maintain production.
Office — 414 Pioneer
Bldg., St. Paul, Minn. Underwriters—Irving J. Rice &
Co., Inc., St. Paul, Minn, and M. H. Bishop & Co., Min¬
neapolis, Minn.
share. Proceeds
it Dwyer-Baker Electronics Corp.
June 20, 1960 (letter of notification)
100,000 shares of
common stock (par 10 cents). Price—$3 per share. Pro¬
maturity of mortgage and
capital. Office—7400 N. W. 13th
Miami, Fla. Underwriters — Frank B. Bateman,
Palm Beach, Fla., and Hardy & Co., New York, N.
and
for working
notes
Ave.,
Ltd.,
Y.
it Dynamic Center Engineering Co., Inc.
June 20, 1960 (letter of notification)
37,450 shares of
common stock
(par $1). Price—$4 per share. Proceeds
—To
general corporate purposes., Office—2554 E. 18th
Street, Brooklyn, N. Y. Underwriter—E. M. North Co.,
Inc., New York, N. Y.
it Electromagnetic
22,
Industries, Inc.
(letter of notification)
1960
stock
common
ceeds—For
(par 10 cents). Price—$4
75,000 shares of
per share. Pro¬
general corporate purposes.
Office—Greeley
Ave., Sayville, L. I., N. Y. Business—Manufactures and
sells transformers, magnetic components and electric in¬
strumentation
and
control
devices.
Underwriter—Flo-
menhaft, Seidler & Co., Inc., New York, N. Y„
it Electronic Developments, Inc. of Florida
June 21, 1960 (letter of
notification) 100,000 shares of
common stock (par 10
cents). Price—$3 per share. Pro¬
ceeds—To establish a new office, for
salaries, research
and development and working capital. Office—424 W.
Davis Blvd., Tampa, Fla. Underwriter—Carr-Rigdon
Co.,
Inc., 4700 Nolensville Rd., Nashville, Tenn.
Electronic
Specialty Co.
150,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—To be added to the general funds in
anticipation of
capital requirements, possibly to include acquisitions.
June
2
filed
Office—5121
San Fernando Road, Los Angeles, Calif.
Underwriters—Reynolds & Co., Inc., of New York, and
Bateman, Eichler & Co. of Los Angeles, Calif. Offering
—Expected in early August.
El
June
Paso
Natural Gas Co.
1960, filed
21,
(7/26)
1,136,669
shares of common stock.
Company proposes to offer the shares for subscription
by common stockholders of record July 26, 1960, at the
held, with
rights to expire on or aboul; Aug. 11, at 5:00 p.m. (EDT).
Price—To be supplied by amendment. Proceeds—To be
used in part to repay not less than $1(1000,000 of current
bank loans and the balance will be used largely for in¬
in the notes and common stock of subsidiary
companies, principally El Paso Natural Gas Products Co.
vestment
Underwriter—White, Weld & Co., Inc. (managing), New
York City.
Minnesota, Inc.
ceeds—To pay current
For
rate of one new share for each 15 shares then
Corp.
(letter of notification)
.
writer—None.
Cubic Corp.
general
Boulevard,
June
Drug Associates, fnc.» (7/11-15)
Asbury Park, N. J.
Meeting—Scheduled for July 22 at 11:00 a.m.
Trust
stock. Price—
For additional
N. W., Wash¬
Co., Washing¬
notification) TOO units of $100,000 of 7%
sinking fund debenture bonds and 10,000 shares of com¬
mon stock
(par $1) to be offered in units consisting of
one $1,000 debenture
and 100 shares of common stock.
Price—$1,100 per unit. Proceeds—For general corporate
purposes. Office—1238 Corlies Ave., Neptune, N. J. Un¬
derwriter—Fidelity Securities & Investment Co., Inc.,
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. .Inc.;
Morgan Stanley & Co.; First Boston Corp. and Harriman
Ripley & Co. (jointly); Kuhn, Loeb & Co. and Laden-
Bankers
Underwriter—Morris
E. S. C. Electronics
Corp. (7/5-8)
May 17 (letter of notification) 75,000 shares of common
stock (par 10 cents).
Price—$4 per share. Proceeds—
stock
May 6 (letter of
gram.
floor.
Office —405
purposes.
Electri-Cord
Realty Investment Co.
April 26 filed 250,000 shares of common
$5 per share (par 50 cents). Proceeds —
working capital. Office—919 18th Street,
ington, D. C. Underwriter—Ball, Pablo &
ton, D. C.
filed $38,101,600 of convertible debentures,
due 1975, to be offered'tor/subscription by holders of
record as of 3:30 p.m.. EDT, July 26, at the rate of $100
of debentures for each 25 shares of stock then held with
no
oversubscription privilege, and rights to expire on
12th
corporate
June 15
Diversified
Juhe 15, 1960,
burg, Thalmann & Co.
received on July 26 at
general
Avenue, New York, N. Y.
& Co., New
York, N. Y.
ing—Postponed.
(7/26)
Power Co.
(par $1).
Price—To be supplied by amendment. Proceeds—For ac¬
expansion, increased advertising and marketing program
budget, and working capital and general expansion. Of¬
fice—1184 Chapel'Street, New Haven, Conn.
Underwriter-^Bertner Bros., New York.
at the
Communities, Inc.
Sept. 25 filed 367,200 shares of common stock
May 27 filed 50,000 shares of class A and 50,000 shares
of class B stock (par 10 cents).
The company proposes
Information
stock
Products, Inc. (7/25-29)
Oct. 15 filed $330,000 of convertible debentures, and 70,000 shares of common stock. Price—For the debentures,
100% of principal amount; for the stock, $5 per share.
Proceeds—From 10,000 shares of the common stock, to
the present holders thereof; from the rest of the offer¬
ing, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St., Miami. Fla.
Underwriter— R. A. Holman & Co., Inc.
opments; the balance of the proceeds will be added to
working capital. Office—1321 Lincoln Ave., Little Rock,
Ark. Underwriter—The Huntley Corp., Little Rock, Ark.
Consumers
of notification)
Deluxe Aluminum
$1 per share. Proceeds—To establish a $250,000 revolving
fund for initial and intermediate financing of the con¬
struction of custom or pre-fabricated type residential or
commercial buildings and facilities upon properties to
•
(7/18-22)
—For
stock
(letter
capital. Address—
Dynamic Films, Inc. (7/5-8)
(letter of notification) 100,000 shares of com¬
stock (par 10 cents). Price—$3 per share. Proceeds
For
1960
'
Consolidated Realty Investment Corp.
per
Under¬
myra,
of $260 of notes due Oct. 1, 1991 and one share of stock,
provided that the minimum purchase shall be 10 units
for a minimum consideration of $3,600 ($2,600 of notes
and 10 shares of stock). Price—$360 per unit. Proceeds—
For repayment of certain advances made to the company.
Office — 724-14th Street, N. W., Washington, D, C. Un¬
derwriter—Shannon & Luchs Securities Corp.
Price—$6.50
Office—Norwood, N. J.
wonting
mon
Pa. Underwriter—Plymouth Securities Corp., New
York, N. Y.
I'
to offer these
capital.
ana
Underwriter—Gaston-Buffington-Waller
March 29
100,000 shares of
(par 10 cents). Price—$3 per share. Pro¬
ceeds—For expenses of offering, to pay instalment con¬
tracts, for electronics research and sales promotion, and
other general purposes. Office—713 W. Main St., Pal¬
31,
common
April 29 filed $585,000 of 4V2% promissory notes and
2 250 shares of common stock.
It is proposed to offer
these securities for public sale in units, each consisting
be
Price—To be supplied by amend¬
the retirement of notes and addi¬
Dechert Dynamics Corp.
May
Pearson, Murphy & Co., Inc., New
April 27 filed 2,000,000 shares
Proceeds—For
common
writer—None.
Connecticut & Chesapeake, Inc.
•
stock, to be
for subscription by holders
of such stock of
May 2 at the rate of one new share for each
tional working
corporate purposes including the reduction of indebted¬
ness, the purchase of machinery and equipment, and for
working capital. Office—73 Sunnyside Ave., Stamford,
Underwriter
134,739 shares of
equipment
Inc., Atlanta, Ga.
•
(7/13)
filed
shares then held.
ment.
(7/11-15)
June 3 filed 125,000 shares of class A common stock (par
10 cents).
Price—$4 per share. Proceeds—For general
York City.
Corp.
29
offered
Conetta Manufacturing Co., Inc.
Conn.
DaLto
auuiuuudi
Norcross, Ga.
37
promote the sale of new products, for the purchase
•
Equitable Leasing Corp. (7/13)
May 9 (letter of notification) 50,000 shares of common
stock (no par). Price—$2 per share. Proceeds—For work¬
ing capital.
Office—246 Charlotte St., Asheville,
Underwriter—Courts & Co., Atlanta, Ga.
N.
C.
•
Espey Mfg. & Electronics Corp. (7/18-22)
April 29 filed 80,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes.
Office—Saratoga Springs,
N.
•
Y.
Underwriter
Evans
Rule
Co.
—
Sutro
Bros.
&
Co.,
New
York.
(7/25-29)
June 17,
1960, filed 145,000 shares of common stock (par
$1), of which 40,000 shares will be sold for the account
and 105,000 shares for the accounts of
certain selling stockholders. Price—To be supplied by
of the company
amendment.
Business—The
company
manufactures
and
sells
precision steel measuring tapes and wood folding
rules. Proceeds—To be used by the company to purchase
two leased plants in Elizabeth, N. J. The balance of the
proceeds will be added to working capital and will be
Continued
on
page
38
c"
'
■
r.
I
38
I- l''
IV'
The Commercial and Financial
(2838)
Chronicle
.
.
.
Thursday, June 30, 1960
■
VH
■■
■si
beth, N. J. Underwriter
York City.
:
i %
|
Co.
June 20, 1960 (letter of notification) 2,000,000 shares of
common stock (par five cents). Price — 12Vz cents per
share Proceeds—For expenses for oil and gas develop¬
ment. Office—E. 12707 Valley way, Opportunity, Wash.
Underwriters—Standard Securities Corp. and Pennaluna
& Co., Spokane, Wash, and Herrin Co., Seattle, Wash.
',»*<■
s
>
t
;Vr
i
}i)
*
;-::rv
Fairmount
■«:
-
I;
Co.
•
v
(letter of notification) 58,000 shares of class A
common stock
(par $5).' Price—At par ($5 per share)*
Proceeds—For
working capital.
Office—5715 Sheriff
Road, Fairmount Heights, Md. Underwriter—J. T. Pat¬
terson & Co., Inc., 40 Exchange Place, New York, N. Y.
Offering—Imminent.
t|V'
,
Finance
May 6
V
,v
—
it Evergreen Gas & Oil
\. V
Educational & Cooperative
Union of America
March 29 filed $2,500,000 of registered debentures,
Farmers'
'1
:t>h..
{v#;
v|'
subsidiaries. Office—Denver, Colo.
surplus or loaned to
Underwriter—None.
Inc.
Farms.
»h
(letter of
to be
debentures,
vK"
Vv?
•
n.C>i
Kf;
Farrington Manufacturing Co. (7/5-8)
25 filed $6,000,000 of subordinated
March
i/.
convertible
Price—To be supplied by amend¬
ment. Proceeds—$2,000,000 to be applied to the pay¬
ment of bank loans; $2,800,000 to the scanner program
in 1960, including
(a) $1,000,000 for expenditures by
due 1970.
debentures
m-
Vl»lt
Electronics, Inc.,
a
newly-formed date
subsidiary, for inventory, 250,000 to pur¬
for producting scanners and
$250,000 as working capital; and (b) $1,300,000 for re¬
search and development. Office—77 A St., Needham,
Mass. Underwriters—Cyrus J. Lawrence & Sons, New
York City; and Brawley, Cathers & Co., Toronto, On¬
Farrington
processing
If
' If
I
i/f
tario, Canada.
II
! if
•
■4
(7/11-15)
(letter of notification) 59,000 shares of com¬
(no par). Price—$5 per share. Proceeds—For
Steel Corp.
City has withdrawn
'•
--.vV.'.v'V
:
:
Federated Electronics, Inc.
(7/18-22)
(letter of notification) 300,000 shares of com¬
cents). Price—$1 per share. Proceeds
For general corporate purposes.
Office—139-14 Ja¬
maica Avenue, Jamaica, N. Y. Underwriter—J. B. Coburn Associates, Inc., New York, N. Y.
H.y.; /
stock (par 10
lilt'/
ill
.
^
• Fiber Glass
June
class
Industries, Inc.
p
(letter of notification) 40,000 shares of
A common stock (par one cent). Price—25 cents
22,
1960
For general corporate purposes.
Office—Homestead Place, Amsterdam, N. Y. BusinessDistributes fibrous glass products nationally.
Under¬
per
share. Proceeds
—
writer—None.
y-
• Garrett
Corp. (7/6)
May 5 filed 100,000 shares of common stock (par $2).
Price—To be supplied by amendment. Proceeds—To re¬
duce
presently outstanding indebtedness. Office—9851
Sepulveda Blvd., Los Angeles, Calif. Underwriter—Mer¬
rill Lynch, Pierce, Fenner & Smith Inc., New York.
Sales
(7/5-8)
April 28 filed 90,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—$75,000
will be used for additional working capital, inventories
and facilities for the Portland Discount Center; $75,000
for the same purposes in the Salem Center; and $50,000
to provide working capital for General Sales Acceptance
Corp. for credit sales to member customers. ' The bal¬
ance of the proceeds will be used to open two new stores
in Oregon and Idaho. Office — 1105 N. E. Broadway,
Portland,
Corp.
Ore. Underwriter
—
Fennekohl
&
Co., Inc.,
New York.
it General Testing Laboratories, Inc.
June 22, 1960 (letter of notification)
100,000 shares of
class A stock (par five cents). Price—50 cents per share.
Proceeds—For general corporate purposes. Office—40-50
Commercial Avenue, Moonachie, N. J.
Business—En¬
vironmental
testing and research.
Underwriter—None.
Glass Magic Boats, Inc. (7/11-15)
Dec. 30 (letter of notification) $51,000 of six-year 6V2%
convertible debentures to be offered in denominations
of
$51
each.
are convertible into
Also, 68,000 shares of
be offered in units of
Debentures
and
68
shares
of
common
stock.
common
common
$51
one
Price—Of
debentures, at par; of stock, $102 per unit. Proceeds—
To pay off current accounts payable; purchase of raw
materials
and
for
expansion.
Office — 2730 Ludelle
Street, Fort Worth, Texas. Underwriter—R. A. Holman
& Co., Inc., New York, N. Y. Note—The name has been
changed from Glass Magic, Inc.
Glass
Industries, Inc.
April 25 filed 200,000 shares of class A stock and 100,000
shares of
common
stock.
The class A stock is to be of¬
fered at $2.25 per share and the common at 75 cents per
share; and the class A and
v|
:
5'ft*
V
Office—New York City.
* ! o-
ceeds—To selling stockholders.
}W
Underwriter—Allen & Co., New York City.
|4K
it Fitchburg Paper Co., Fitchburg, Mass. (7/26-27)
June 28, 1960, filed 325,000 shares of class A common
stock, of which 217,000 shares are to be offered for pub¬
lic sale for the account of the issuing company and 108,000 shares being outstanding stock by the present holder
thereof. Price—To be supplied by amendment. Proceeds
IW-
itil.
common
shares
are
to
offered in units consisting of two class A and one
be
com¬
Price—$5.25 per unit. Proceeds—To develop the
necessary production facilities to produce the company's
mon.
at a cost not in excess of $114,000; to pay in full
the outstanding 5%% notes held by New England Mu¬
pany
"
*
7?
tual, the unpaid principal amount of which at June 1,
1960 was $787,500; $1,400,000 for construction of a new
and larger plant for the Decotone Products Division;
$450,000 for completion of a new office, building; and the
balance for additional working capital.
Underwriter—
p,
•U'
White, Weld & Co., New York.
•
Florida
Capital Corp.
(7/25-29)
June 9,
1960, filed 500,000 shares of common stock (par
$1). Price—To be supplied by amendment. Proceeds—To
r» i
If;?
■
iifi
finance the
Iff
investments in
issuer's
Florida Home
fr
Insurance Co.
March 30 filed 17,500 shares of common stock to be of¬
fered
I
to
common
holders of the company's 85,995 outstanding
shares at the rate of one share for each five
shares held.
Unsubscribed shares will be offered to
to other
stockholders of the company. Price—To be
«•«
■tr
4
t
fe
*&
em¬
ployees and officers of the company who are stockhold¬
ers without further offering of such unsubscribed shares
d
f
Falls, Texas.
subordinated Installment
debentures, due in March, 1970, 70,000 shares of
mon stock (10 cents par) and 35,000 common stock
com¬
pur¬
chase warrants (exercisable at $4.30 per share until May
15, 1965), to be offered in units consisting of $100 of
debentures, 10 common shares, and five warrants. Price
—$143 per unit. Proceeds—To be applied toward the
company's general business activities. Office—292 Madi¬
Avenue, New York. Underwriters—Ross, Lyon &
Co., Inc., and Globus, Inc., both of New York.
Note—
The company name has been changed to Transnation
Realty Corp.
;.
;
son
Gold Medal
Packing Corp. (8/15)
17, 1960, filed 100,000 shares of 25c convertible pre¬
ferred stock
(par $4). Price—At par. Proceeds—Ap¬
proximately $150,000 will be used to discharge that
portion of its obligation to Jones & Co. pursuant to
which certain inventories are pledged as collateral. The
June
indebtedness
to
Jones
&
Co.
initially incurred on
June 15, 1960 in connection with refinancing the com¬
pany's obligations to a bank. In addition, $15,000 will
used
be
for
sup¬
plied by amendment. Proceeds—To be added to the com¬
pany's general funds to be held in cash or invested in
securities. Office — 1335 Biscayne Blvd., Miami, Fla.
the
construction
was
of
an
additional
smoke¬
Underwriter—N one.
Ford Electronics Corp.
'
May 25 "(letter of notification) 75,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To pur¬
chase tooling, a 20% interest in Arizona Biochemical
t
* >i
t I".
house, and the balance will be used for general corporate
purposes.
Office—614 Broad Street, Utica, N. Y. Busi¬
ness—The company is engaged in the processing, pack¬
ing and distribution of meats and meat products, prin¬
cipally sausage products, smoked meats, bacon, and meat
specialties. It also sells certain dairy products. Under¬
writer—Ernst Wells, Inc., 15 William Street, New York
City.
Greenbelt Consumer
Services, Inc.
April 28 filed 40,000 shares of series A
common
stock
and
160,000 shares of series B common stock. Price—$10
per
share.
Proceeds—$400,000 will be used in payment
of bank loans made in January to finance the purchase
of
equipment for two
supermarkets which
are plan¬
June, 1960. Approximately
$200,000 will be used for the purchase of inventory for
new
ned to be opened in May and
the two
new
Furnace Manufacturing Co., Inc.
(letter of notification) 120,000 shares of com¬
(par 10 cents).
Price — $2.50 per share.
Proceeds
For
advertising,
equipment and working
Gross, 2411 Sunnybrook
Road, Richmond, Va. Underwriter—Maryland Securities
Co., Inc., Baltimore, Md.
capital.
—
Office—c/o Joseph
Guardian Central
June
J.
Trust, Inc.
filed
3
484,862 shares of common stock, of which
200,000 shares are to be publicly offered, and the re¬
maining shares
of
stock
reserved
are
Guardian
Proceeds—From
Guardian
Discount
the
Discount
public
for the
acquisition of the
Price—$6 per share.
offering, to be invested in
Co.
Co.
Office—1415 Union
Avenue,
Memphis, Tenn. Underwriter—James N. Reddoch & Co.,
Memphis, Tenn.
;
■
Gulf Power Co.
May
27
1990.
filed
(7/7)
$5,000,000 of
first mortgage bonds, due
Proceeds—Together with other funds, will be used
additions and improvements and for pay¬
for property
ment of
$3,092,800 of bank loans. Office—75 North Pace
Boulevard, Pensacola, Fla. Underwriter—To be deter¬
mined by. competitive bidding.
Probable bidders: Halsey, Stuart & Co., Inc.; The First Boston Corp.; Equi¬
table Securities
Corp.; Kidder, Peabody & Co. and White,
Weld & Co. (jointly); Blyth & Co., Inc.; Merrill
Lynch,
Pierce, Fenner & Smith Inc.; Salomon Bros. & Hutzler
and Drexel & Co. (jointly); Eastman Dillon, Union Se¬
curities & Co.
Information Meeting—Scheduled for
July
5, 1960 at 3:30
p.m.
New York Time, at the office of the
Bank, Room 238, 43 Exchange Place,
New York City. Bids—Expected to be received at the
office of Southern Services,
Inc., Room 1600, 250 Park
Avenue, New York 17, N. Y., before 11 a.m., New York
Time on July 7, 1960.
Chase
Manhattan
Gulf Power Co.
(7/7)
May 27 filed 50,000 shares of cumulative preferred stock
(par $100). Proceeds—Together with other funds, will
be
used
for
property
additions and improvements and
$3,092,800 of bank loans. Underwriter—
for payment of
To be determined
ders:
Harriman
Dillon, Union
Hutzler
by competitive bidding. Probable bid¬
Ripley & Co., Incorporated; Eastman
Securities
(jointly);
&
Co.
Equitable
and. Salomon "Bros. *&
Securities
Corp.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Infor¬
mation Meeting—Scheduled for
July 5, 1960 at 3:30 p.m.
New York Time, at the office of The Chase
Manhattan
Bank, Room 238, 43 Exchange Place, New York City.
Bids—Expected to be received at the office of Southern
Services, Inc., Room 1600, 250 Park Avenue, New York
17, N. Y., before 11 a.m., New York Time on Jul^ 7,
1960.
■;
Gulf-Tex
Development, Inc.
(7/25-29)
March 30 filed 250,000 shares of common stock. Price—
$5 per share. Proceeds—For purchase of-Pelican Island;
for improvements on said
property; and for working
capital and other general corporate purposes, including
the general development of the
property. Office—714
Rosenberg St., Galveston, Tex. Underwriter—Myron A.
Lomasney & Co., New York.
■
•
Hampshire Gardens Associates (7/5-8)
April 1 filed $376,000 of Limited Partnership Interests,
to be offered in units.
Price—$500 per unit. Proceeds—
For purchase of the fee title to
Goelet Corp. (7/25-29)
March 1 filed $700,000 of 8%
—
R*4
!t*v
(
con¬
Beach, Fla. Underwriter—A. C. Allyn & Co., Inc., Chi¬
cago, 111.
ml
%
business
which will be engaged in land development or
electronics. Office
1201 Harvey Bldg., West Palm
cerns,
III"
i?
small
Office—Humboldt, Iowa. Underwriters—Leason
& Co., Inc., Chicago, 111.; William B. Robinson & Co.,
Corsicana, Texas; and Bala William & Co., Wichita
•
—Together with other funds, will be used to purchase
and retire the outstanding preferred stock of the com¬
The
stock
mon
Marine
boats.
+ Fischbach & Moore, Inc.
June 28, 1960, filed 300,000 outstanding shares of com¬
mon stock. Price—To be supplied by amendment.
Pro¬
Gross
March 30
/./'••''I:•//
Corp.: (7/5-8)
April 1 filed 660,000 shares of class A stock. Price—To
be supplied by amendment.
Proceeds—For acquisition
of properties. Office—580 Fifth Avenue, New York. Un¬
derwriter—Reynolds & Co., New York, has withdrawn
as
underwriter. New underwriter is Van Alstyne, Noel
debenture
mon
Offering
Futterman
Ohio.
•
•.
New under¬
''
.*
.
3,
-
Elkton Ave., Dayton
Underwriter—Westheimer & Co., Cincinnati,
underwriter.
as
writer is Fund Planning, Inc., New York City.
—Sometime in July.
expansion program. Office—3327
April 25
tl'
velopment, $200,000 for working capital, and the balance
for sales promotion expenses.
Office — Cedar Grove,
N. J. Underwriter—D. F. Bernheimer & Co., Inc., New
York
and inventory for such stores.
balance of approximately $182,000 will be added to gen¬
eral working capital. Office—10501 Rhode Island Ave.,
in July,
Corp.
April 26 filed 125,000 shares of class B stock. Price—
$4 per share. Proceeds—$100,000 for research and de¬
stock at $1.50 per share.
stock (par 10 cents) to
Ohio.
;iir
Foto-Video Electronics
an
'ji
.
stock
mon
.
rv
Federal
March 30
TO'.-
j
f
test equipment
and
chase
pur¬
Beltsville, Md. Underwriter:—None. Offering—Expected
•
General
notification) $298,000 of 10-year 5%%
offered in denominations of $1,000,
$500 and $250 each. Price—At face value. Proceeds—
For working capital. Office—818 17th Street, Denver 2,
Colo. Underwriter—Wayne Jewell Co., Denver, Colo.
June 13
;viV?
ii-
series
1980. Price—To be offered
in units of $100.
Proceeds—To pay notes maturing be¬
fore Dec. 31, 1963, with $1,107,000 to be contributed to
.
offering will be used to finance the
chase of equipment
& Co.
1969 to
maturing from
D
of the
ceeds
ianos, 4465 Petit Avenue, Encino, Calif., UnderwriterThomas Jay Winston & Co., Inc., Beverly Hills, Calif.
Note—The underwriter states that the amount of this
offering is to be increased.
Office—Eliza¬
McDonnell & Co. Inc., New
available for general corporate purposes.
f' I'S
Office—c/o John N. Val-
Corp. and for working capital.
Continued from page 37
stores.
The
contemplates open¬
ing four additional supermarkets within the next two
and one-half years.
company
Approximately $1,200,000 of the
pro¬
a garden
type apartment
community (Hampshire Gardens) consisting of 14 build¬
ings with a total of 134 apartments in
Chillum, Md. Of¬
fice—375 Park
Avenue, New York. Underwriter—B. C.
Morton & Company,
Inc., New York.
it Harcourt, Brace & Co., Inc. (8/17)
June 28, 1960, filed
493,425 outstanding shares of com¬
mon stock.
Price—To be supplied by amendment. Pro¬
ceeds—To selling stockholders.
Business—The company
is
engaged
in
the
publication
school, high school
and
and
sale
of
junior high
college
textbooks, workbooks,
reiaAedJ?1.aterials, as well as general trade books. Office
—750 Third Avenue, New York.
Underwriter—White,
Weld & Co., New York.
ic Hawaiian Pacific Industries, Inc.
June 29/ 1960, filed
$1,350,000 of 6V2% convertible sub¬
ordinated debentures, due
September, 1970, and 100,000
shares of common stock. Price—Debentures
at 100% -of
principal amount; common stock, to be
supplied by
amendment. Proceeds —For
construction
expenses,
new
equipment, reduction of indebtedness, and the acquisi¬
tion of properties. Office
Honolulu, Hawaii. Under¬
writers—Bosworth, Sullivan & Co. and Lowell, Murphy
& Co., both of
Denver, Colo.
—
,
V
it Hazel
Bishop Inc.
June 28, I960, filed 1,157,200 shares
of
,ed/or the account of selling
m
common
stock to
stockholders. Price
—To be offered from time-to-time on
the ASE at prices
current at time of sale. Proceeds—To
ers.
selling stockhold¬
Office—New York City, N. Y.
Underwriter—None.
Helicopters, Inc.
May 19 (letter of notification) 60,000 shares of common
stock (par $1).
I®rice—^$5 per share. Proceeds
For
purchase of equipment, tools,
inventory and working
capital. Office
Heliport, Stapleton Airfield, Denver 2,
Colo. Underwriter—Insurance
Stocks, Inc., Denver, Colo.
—
* Honey Dew Food Stores, Inc.
June 24, 1960 (letter of
notification)
convertible
Price
—
At
$300,000 of 7V2%
debentures due Julv 1
1970
These debentures are convertible
subordinated
through June 30, 1965 into capital stock at
$2.50 per share
including June 30, 1962, at $3.33Va per share from
to and
Volume
Number 5964
191
.
.
The Commercial and Financial Chronicle
.
Office—511
1962 t° June 30, 1964 inclusive and at $4 per
July 1,
Hotel Corp. of America
•
that operates the Hotel Mayflower
facilities, and the balance for working capital. Office—
18 Beechwood Avenue, Port Washington, N. Y. Under¬
writers—Morris Cohon & Company and Schrijver & Co.,
program. Office—New York City. Underwriters—Bache
& Co. and Bear, Stearns & Co., both of New York.
both
Hupp Corp.
<
(letter of notification) 32,000 shares of common
stock (par $1) to be offered at $9,375 per share to stock¬
holders of Gibco, Inc., in exchange for its common stock.
If 12,116 or less shares of Gibco common are offered by
stockholders before July 18, 1960, they will receive 2.6412
shares of Hupp common for each share of Gibco, and if
more than 12,116 shares are offered, stockholders will
receive the number of shares obtained by dividing the
number offered into 32,000 shares. Office—1135 Ivanhoe
Road, Cleveland, Ohio. "J
-
common
1960 filed $2,500,000 of convertible debentures
to offer the debentures
subscription by stockholders. Price—To be supplied
by amendment. Proceeds—Approximately $490,000 will
be used to retire loans made to furnish working capital
and to finance the company's Hydro-T-Metal program,
will be used to retire a loan made to finance
a license to practice an electrothermal
and $300,000
The balance of such proceeds will be added to the
ores.
(7/11)
Co.
$10,000,000 of first mortgage bonds. Pro¬
ceeds — Together with the proceeds from the sale of
common stock, will
be applied towards the repayment
of bank loans incurred in connection with the company's
June
for the production of metals from oxides and
process
general funds of the company. Office — 405 Lexington
Ave., New York City. Underwriter—H. M. Byllesby &
1
filed
offered for the, company's,'jacqqpnt and 80,000 shares by
company's
and gen¬
eral corporate purposes. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Stone & Webster Securities Corp.; Lehman
Brothers, Merrill Lynch, Pierce, Fenner & Smith Inc.
certain stockholders. Price—To be supplied by amend¬
ment. Proceeds—For general corporate purposes.
Busi¬
Union
Co., Inc., Chicago, 111.
construction
• Hyster Qo.
27, I960,, filed 130,000 shares of its common stock
(par
50
ness
—
cents).
Of the
total,
50,000
shares
are
being
I
C
up
Laclede Gas
Inc.
filed
maximum
June
Price—$2.50
stock (par $4), to be
shares of common stock (par $1).
share. Proceeds—To further the corpo¬
rate purposes and
and enfranchising
of
in the preparation of the concentrate
April
stock.
29
filed
200.000
shares
of
common
Pa.
and
Bruno
•
(7/6)
June 9, 1960, filed $50,000,000 of first mortgage bonds,
series G, due 1997. Proceeds—For construction purposes.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; Glore, Forgan & Co. and Eastman Dillon,
Union Securities & Co. (jointly). Bids—Expected to be
received on July 6 up to 11 a.m. (EDST) at room 2315,
195
Broadway, New York City.
•
Inter-County Telephone & Telegraph Co.
June 16, 1960 filed 125,000 shares of common stock (par
$4.16%). Price — To be supplied by amendment. Pro¬
ceeds— $1,500,000
will be used to liquidate outstanding
short-term bank loans and approximately $600,000 will
applied
to
reduction
of
payable
accounts
in
con¬
nection with the company's continuing construction pro¬
gram. The remainder will be used to pay a portion of the
1960
construction
$3,000,000.
Underwriter
expenditures estimated at
Office—1517 Jackson St., Fort Myers,
—Dean Witter & Co., New York.
Fla.
.
.
.
Sud America
June 21,
1977.
1960, filed $10,000,000 of debentures due July,
Price—100% of principal amount. Proceeds—For
general funds. Office—67 Broad Street,
New York City. Underwriter—Bear, Stearns & Co., New
York.
and
•
investors Funding Corp. of New York
June 17, 1960 filed $400,000 of 10% subordinated deben¬
tures (half due December 1964 and half due December
1965); $1,000,000.of 10% subordinated debentures (with
common stock purchase warrants), due serially 19661970; and warrants for the purchase of 30,000 common
shares, exercisable initially at $10 per share. Price—The
debentures (including those with warrants) are to be
offered for sale at 100% of principal amount. Proceeds—
To be used
primarily for the purchase or improvement
of
additional parcels of real estate, and some may be
Used to
discharge debentures maturing in August, 1960.
and
Merrill
Underwriters
Pierce,
Lynch,
—
Fenner
Lehman
Smith
&
•
Lee Filter Corp.
(8/29)
(par
$250,-
June
17, 1960, filed 110,000 shares of capital stock
$1).
Price—$8.75
*
000
will be used
per
tal
and
to
$100,000
for
Proceeds—About
share.
bank loans, the proceeds
to discharge
of which were used to
discharge
Office—6920 Sunset Boulevard, Los Angeles, Calif.
—
Crowell, Weedon & Co., Los Angeles,
Calif.
Magnasync Corp.
200,000 shares of capital stock. Price
Feb. 26 filed
—
$5
interim loans up to $100,Taylor & Co.; $100,000 for expansion of labora¬
tory facilities and personnel for research and develop¬
ment; $100,000 to increase plant production facilities;
$116,000 for tooling and production of proprietary items;
$110,000 for increase of inventory; $75,000 for research
share. Proceeds—To
per
repay
000 to
and
development; and $2,000 for documentary stamps;
$110,000 will be added to working capital; and the re¬
maining $88,400 is unallocated. Office—5546 Satsuma
Ave., North Hollywood, Calif. Underwriter—Taylor and
Company, Beverly Hills, Calif.
Majestic Utilities Corp.
April 29 filed $300,000 of 6%
poses.
other
construction
short
and
-
term
purchase
indebtedness;
of additional
Office—191 Talmadge Road, Edison, N. J. Under¬
writer—Myron A. Lomasney & Co., New York.
•
Lamtex Industries,
Inc.
convertible
10-year de¬
—
Lestoil Products, Inc.
corporate purposes. Office—Holyoke, Mass. Business—
Company's principal products are Lestoil and Lestare.
Underwriters — Paine, Webber, Jackson & Curtis, New
and Alex. Brown & Sons, Baltimore,
Md. and New York.
•
securities for public sale in
(1,200), each consisting of $250 face amount of de¬
bentures, 25 shares of common stock, and options to
to purchase an additional 25 common shares.
Price—
$350 per unit. Proceeds—To be applied in part payment
of a $250,310 bank loan and the balance to be added to
working capital and used for general corporate pur¬
poses. Office — 1111 Stout Street, Denver, Colo.
Under¬
writer—Purvis
Liberian Iron Ore Ltd.
Company, Denver,
Colo.
Offering-
•
Martin-Parry Marine Corp.
May 10 (letter of notification) 240,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—
For general corporate purposes.
Office — 415 Madison
Ave., New York, N. Y. Underwriter—Edward H. Stern
Co., 32 Broadway, New York, 32, N. Y. Offering—Ex¬
pected sometime in'August."
&
Maule
Industries,
Inc.
June
15, 1960, filed 254,322 shares of,common stock, to
offered to holders of the outstanding common at the rate
new share for each three shares held. Price—$7
share. Proceeds —For plant and modernization ex¬
penses. Office—Miami, Fla. Underwriter—None.
of
one
per
^ Mercantile Discount Corp., Chicago, III.
June 29, 1960, filed, 128,000 shares of common stock.
Price—To be supplied by amendment. Proceeds—To be
added to the capital fund to allow for the expansion of
business and to increase borrowing capacity. Part of the
proceeds may be used temporarily to reduce bank bor¬
rowings. Underwriters—Rodman & Renshaw and H. M.
Byllesby and Co. Inc., both of Chicago, 111.
Metropolitan Development Corp.
(7/11-15)
June 8 filed
1,000,000 shares of capital stock. Price—To
be supplied by amendment. Proceeds—To complete pay¬
ments on the company's property, for repayment of
loans, and the balance to be added to the general funds
for construction purposes and acquisitions. Office—Los
Angeles, Calif. Underwriters—William R. Staats & Co.,
of Los Angeles, Calif., and Bache & Co. and Shearson,
Hammill & Co., both of New York City.
Miami Tile &
Terrazzo, Inc.
March 11 filed 125,000 shares of common
stock (par $1).
Price—$4 per share. Proceeds—$150,000 as reduction of
temporary bank loans, $140,000 in reduction of accounts
payable, $65,000 to repay notes and loans payable to
Barney B. and Nathan S. Lee, and the balance for gen¬
eral corporate purposes.
Office—6454 N. E. 4th Ave.,
Miami, Fla. Underwriter
Corp., Miami. Fla.
Midwest Technical
—
Plymouth Bond & Share
Development Corp.
(7/5-8)
May 17 filed 561,500 shares of common stock, to be of¬
fered to holders of the outstanding common on a onefor-one basis. Price — To be supplied by amendment.
Proceeds—For general corporate purposes. Office—Min¬
neapolis, Minn. Underwriters—Shearson, Hammill & Co.,
New York City, and Piper, Jaffray & Hop wood, Min¬
•
Midwestern
Indemnity Co.
(letter of notification) 15,832 shares of com¬
mon
stock (par $5) being offered for subscription by
stockholders of record at the close of business on March
March 25
held
(7/11-15)
joined with The Liberian American-Swedish
Minerals Co., Monrovia, Liberia, in the filing of $15,19
000,000 of 6y4% first lien collateral trust bonds, series A,
due 1980, of Lio, $15,000,000 of 6%% subordinated de¬
bentures due 1985' of Lio, an unspecified number of
in units.
The
with rights to
share.
expire
on
July 22. Price
—
$17 per
Proceeds—For working capital. Address—Cincin¬
nati, Ohio. Underwriter—W. D. Gradison & Co., Cincin¬
nati, Ohio.
•
Miles
Laboratories, Inc.
18, 1960 filed $8,255,000 of 4%% convertible sub¬
ordinated debentures due 1980. The company is offering
May
to the holders
June
of its outstanding common stock of record
24, 1960, rights to subscribe
for the debentures in
principal amount of debentures for each
then held; the subscription
offer will expire July 11, 1960.
The new debentures
which will be convertible into common stock at a con¬
the ratio of $100
16
shares of Lio capital stock, to be offered
&
Expected sometime in July.
4, 1960 in the ratio of one share for each three shares
(8/1-5)
17, 1960 filed 275,000 shares of class A stock and
275,000 shares of common stock (par $1), to be offered
for public sale in units, each consisting of one class A
and one common share. Price—$15 per unit. Proceeds—
To discharge certain indebtedness, and the balance will
be added to working capital and be available for general
June
May
proposed to offer these
neapolis.
(7/18-22)
May 13 filed 100,000 shares of common stock. Price—
$5 per share. Proceeds—For general corporate purposes.
Office
Motor Ave., Farmingdale, Long Island, N. Y.
Underwriter—Finkle, Seskis & Wohlstetter, of N. Y. City
York and Boston,
is
provide additional working capi¬
tools, dies and machinery and additions to raw material
inventory; and the balance for general corporate pur¬
• International Telephone & Telegraph Corp.,
subsidiaries
amendment. Proceeds—
it Lee Electronics Inc.
June 14, 1960 (letter of notification) 135,000 shares of
common stock
(par 10 cents). Price—$2 per share. Pro¬
ceeds—To expand operations. Office—3628 Rhawn St.,
Philadelphia, Pa. Underwriter — Atlantic Equities Co.,
Washington, D. C.
Telephone Co.
(7/25-29)
be
14 shares of common
Inc., both of New York, and Reinholdt & Gardner, St.
Louis, Mo.
Lenchner, Inc., Pittsburgh, Pa.
Bell
other corporate purposes.
Brothers
Proceeds—To
Illinois
each
at the close of business on July 8,
pany's construction program and for additions to the
company's working capital, to be used for construction
and
selling stockholders.
Price—$10
share. Office—200 South Craig Street, Pittsburgh,
Underwriters—Amos Treat & Co., Inc., New York,
per
share for
additional
Price—To be supplied by
1960.
(6/27-7/1)
outstanding
of 243,600 shares of common
offered to stockholders on the basis
Together with the proceeds from the proposed sale of
the first mortgage bonds will be applied toward repay¬
ment of bank loans incurred in connection with the com¬
Offering—Imminent.
/Illinois Beef, L. & W. S., Inc.
one
a
stock held of record
of bottlers, the local.and national pro¬
motion and
advertising of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler & Co., both of Denver
Colo.
1
(7/8)
Co.
June 29 filed 600,000
per
(jointly); Eastman Dillon,
Bids—Expected to be received
to 11:00 a.m. EDT. Information Meeting—
Scheduled for July 7 at 10:30 a.m. EDT at the Bankers
Trust Co.
v
1
handling equipment. Underwriter — Blyth & Co., Inc.,
New York. Offering—Expected in August.
*
•
the
Gardner
Securities & Co.
July 11
on
manufacturing and marketing of materials
The
to
to be used for construction
&
Reinholdt
and
additions
for
program
working capital,
;
June
ital.
units
Laclede Gas
acquisition of
the
Liberty Records, Inc. (7/6)
April 1 filed 150,000 shares of common stock (par 50c),
Price—Approximately $8.00 per share. Proceeds—To be
added to the company's general corporate funds, sub¬
stantially to meet increased demands on working cap¬
bentures, $250 face value, 30,000 shares of common stock,
and options to purchase an additional 30,000 shares.
It
infra-red
Inc.
due 1972. The company proposes
for
New York.
instrumentation, $100,000 for continued re¬
search in the design, development and production of
components for microwave instruments, and the balance
for working capital. Office—40 Marbledale Road, Tuckahoe, N. Y.
Underwriters — Ross, Lyon & Co., Inc.;
Globus, Inc.; Reich & Co.; Harold C. Shore & Co. and
Godfrey, Hamilton, Magnus & Co., all of New York City.
.
16,
June
units, to be supplied by amendment, and not to be in
of par. Proceeds—To make loans to Lamco. Office
—97 Queen St., Charlottetown, Prince Edward
Island,
Canada, N. S.
Underwriter—White, Weld & Co., Inc.,
Price—$4 per unit. Proceeds—$165,000 will be applied
to the repayment of certain loans, $75,000 for develop¬
ment and design work by a subsidiary in the field of
Beach, Calif. Underwriter—Wedbush & Co., Los Angeles,
Calif..
1
...
■/::
:
"::/V
:
•:
'/./
.
1
Kings Electronics Co., Inc. (8/1-5)
May 26 filed 200,000 shares of common stock (par 10
cents) and 100,000 common stock purchase warrants.
The company proposes to offer these securities for public
sale in units, each consisting of one share of common
stock and one-half common stock purchase
warrant.
additional molds and jigs, research and development and
for working capital. Office—804 Lake St., Huntington
Hydrometals,
Underwriter—First Philadelphia Corp.,
St., New York.
New York.
purchase inventory, increase plant capacity by adding
To
Petrochemicals, Inc.
$115,000 for new plant facilities and equipment; and the
balance for general corporate purposes. Office—120 Wall
1960 (letter of notification) 180,000 shares of
stock. Price—At par ($1 per share). Proceeds—
20,
June
Kenrich
units will consist of $500 of collateral trust bonds, $500
of debentures and 15 shares of capital stock. Price—For
Underwriter
York.
amount; and $3.50 per class A share. Proceeds—$10,000
will be applied towards the repayment of demand notes,
Hydrocraft, Inc.
^
New
of
(7/13)
March 29 filed $175,000 of 7% convertible subordinated
debentures due 1970, and 55,000 shares of class A com¬
mon
stock.
Price—For debentures, 100% of principal
•
9
June
(7/25-29)
Inc.
debt, for instrumentation and automation of laboratory
equipment, for expansion of existing manufacturing fa¬
cilities and the acquisition or establishment of additional
Washington,' D. C. and of Fred Fear & Co. price—To
supplied by amendment. Proceeds — For expansion
in
be
Itemco,
39
excess
April 29 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceds—For repayment of outstanding
(7/5-8)
of convertible collateral trust
due July 1, 1972, secured by the common
stock of the company
York. Business—The com¬
Underwriter—None.
17 fUed $1,500,000
May.
debentures,
Fifth Ave., New
pany's primary business is that of purchasing, develop¬
ing, financing, investing in and selling real estate.
from July 1, 1964 to June 30, 1965 inclusive. Pro¬
— For general corporate purposes.
Office — 811
Grange Rd., Teaneck, N. J, Underwriter — Vickers,
Christy & Co., Inc., 15 William St., New York 5, N. Y.
share
ceeds
•
(2839)
shares
of common stock
version price
of $75 per share until maturity,
unless pre¬
viously redeemed, will be entitled to an annual sinking
fund commencing July 1, 1966, sufficient to retire apContinued
on page
40
'
f'fl
U'
Mr
;■
a
40
The Commercial and Financial Chronicle
(2840)
in
and
use
Continued from page 39
manufacturing
and
to be offered for
public sale by the present holders
•
the remaining 80,000 shares will be offered
<
issuing company.
Price — To be supplied by
amendment.
Proceeds—$150,000 will be used for the
selling swimming pool
Under¬
f
are
equipment, accessories, chemicals and supplies.
J
(7/5-8)
May 18 filed 50,709 shares of common stock (no par).
Price—To be supplied by amendment. Proceeds—To be
added to the general funds of the company and used for
general corporate purposes. Office—1621 Snyder Ave.,
Philadelphia, Pa. Underwriters—Drexel & Co. and De-
toward the reduction of outstanding bank
St. Louis, Mo. Underwriter — Eastman
To be applied
Office
loans.
—
•
ijii'
■'ft
;
'V
O00
■!*
price—To be
May
i
0'*'
junior subordinated debentures, due 1975.
supplied by amendment. Proceeds—To be
added to the company's general working funds. Office—
/'
202 Dwight
*'k
■
[f
«'.
I
/{}•'
'4il
,
Homes, Inc.
Monowall
*
;j.
ceeds—To
mon
I
Vji y
purposes.
May
Underwriter—To
Colo.
Office—Denver,
■
Namm-Loeser's Inc.
jfti
■('.s '.?■
'
lit
W V"
H,
.
I, r
M
,u
b'.JI).1
If
Tr
i«
I
v'W
be
New
May
*)}
'
i
''
investment
ul
»;'<
'
and
to
Business
group
|l|l'
%
of small business
Walker &
i;' i;<
i
■
i* h
National
■A.
It
vegetable
ft-;>
tV\l
*
»
®
•J, ii
I
Development Corp.
for working
(7/18-22)
Globus, Inc.
Ross, Lvon & Co., both of New York City.
Broad
:fp
tion,
-m:<
K*%
mon
*%
common
a
10, 1959 in connection with the issuance of the notes and
exercisable at $15 per share. Price—To be
supplied by
f.ft
amendment.
-
l-'j
InS
*f jf-,
-
Proceeds—In
the
amount
of
$315,000
re¬
ceived upon exercise of the 21,000 warrants will be used
for general corporate purposes. - Office—Lee
Highway,
Florence, Ala, Business—The company is engaged in the
business of designing, manufacturing and selling com¬
V''
-»%
H'
:
ponent parts of swimming pools for public and private
|i;
».»
k it h
'I
.1,
4
,
J
,
(I.,
«
»
»•»
»
•'
M
*
•
•
1*
-
connection
-
Patrick County
bidding.
Probable
Salomon Bros.
Meeting
—
on
July 19
Street, between 10:00
a.m.
up
for
and 12
<-
due
■
certificates.
to 11 a.m. EDT.
July 15 at 67
Parks &
purpose
Rockville
1160
Patton
.
$5,000,000
of
first
mortgage
participation
from face value.
of refinancing existing loans.
Pike,
a
Proceeds—For the
Md.
Office—
Underwriter—In¬
of bank loans
to
be
obtained
for
tem¬
expenditures.
Underwriter—To
be
deter¬
by competitive bidding. Probable bidders: Halsey,
Co., Inc. group. Bids—To be received on July
up
to 10:00 a.m. CDST.
Information Meeting —
Stuart &
Scheduled for July 6 up to 11:00 a.m.
Trust Co., 16 Wall St., New York
EDT, at Bankers
City, 12th floor, room
12A.
•
6
Co., Inc.
filed
(8/8)
common
(par $1).
Proceeds—To
re¬
Nuclear Engineering Co., Inc.
April 18 (letter of notification) 30,000 shares of common
stock (par 33.3 cents). Price—$10
per share. Proceeds
—To replace bank financing, reduce accounts
payable,
purchase machinery and equipment and for working
capital. Office—65 Ray St., Pleasanton, Calif. Under¬
writer—Pacific Investment Brokers,
Obear-Nester Glass Co.
Inc., Seattle, Wash.
(7/5-8)
April 14 filed 210,045 shares of common stock (no par).
Price
To be supplied by amendment. Proceeds
To
selling stockholders. Office—Broadway and 20th, East
St. Louis, 111. Underwriter—Merrill
Lynch, Pierce, Fen¬
ner & Smith
Inc., New York.
—
—
Corp.
filed 300,000 shares of
30
common
stock, to be
offered to the holders of its
outstanding common .stock.
The subscription date and record date will be
supplied
by amendment. Price—$2.50 per share. Proceeds—For
general corporate purposes. Office—9489 Dayton
Way,
Beverly Hills, Calif. Underwriter—None.
•
Olin's
June
10,
Rent-A-Car System, Inc.
(letter of notification)
1960
200,000 shares of
class A stock (par five
cents). Price — $1.50 per share.
Proceeds—To pay for closing,
rentals, leasing rental cars,
and for working capital. Office—2830 N. E.
2nd Ave.,
Miami, Fla. Underwriter—Robert Edelstein Co., Inc.,
New York, N. Y. Note—The
underwriter states that this
letter has been withdrawn
by the company.
•'Oxford
liabilities.
current
The
balance
will
be
Pearson
Staats
Office—717 No.
Angeles, Calif.
Underwriter—•
Co., Los Angeles, Calif.
Los
Avenue,
William R.
&
(8/1-5)
Corp.
March 30 filed 50,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—$60,000 will be
utilized
to
repay
the
company's
indebtedness
to
Busi¬
Development Co. of Rhode Island; the balance will
be added to working capital for general corporate pur¬
principally to finance inventory and for other
manufacturing costs. Office—1 Constitution St., Bristol,
poses,
R. I. Underwriter—R. A. Holman & Co., Inc., New York.
Philippine Oil Development Co., Inc.
March 30 filed 103,452,615 shares of capital stock, to be
offered for subscription by stockholders at the rate of
one new share for each 5% shares held. Price — To be
supplied by amendment. Proceeds—To be added to the
company's working capital. Office — Soriano Bldg.,
Manila, Philippines. Underwriter—None.
Plastics
Manufacturing Co., Inc. (7/5-8)
May 3 filed 240,000 shares of class A common stock (par
$1), of which ^160,000.shares are how;outstanding and
& Fibers, Inc.
(letter of notification) 150,000 shares of common
(par 20 cents). Price—$2
_
stock
machinery and equipment,
and add to working capital. Office—North Water
Street,
So. Norwalk, Conn.
Underwriter—Myron A. Lomasney
& Co., New York City.
March
of
added to the general funds of the company and will be
stock
-
100,000 shares of
Price—To be supplied by amendment.
duce indebtedness, purchase
•
reduction
June 14
Norwalk
June
Pauley Petroleum Inc. (7/11)
/
May 27 filed $10,000,000 of subordinated debentures
(convertible) due 1976.
P r i c e — To be supplied by
amendment. Proceeds—$7,000,000 will be applied to the
payment of bank borrowing incurred in connection with
the company's Mexican Tidelands operations and to the
ness
porary financing of part of the company's new construc¬
tion and to increase working capital for application to
13,
Manchester, N. H.
Highland
*
Northern l&linois Gas Co.
(7/13)
May 27 filed $30,000,000 of first mortgage bonds due 1985.
Proceeds—To be applied to the retirement of not to ex¬
ceed
Engineering Corp.
1960 (letter of notification) 19,000 shares of class
B common stock (no par). Price—$5 per share. Proceeds
—For working capital. Address — ,Bert Lane, North
Hampton, N. H. Underwriter—Eastern Investment Corp.,
available for general corporate purposes.
Rockville,
Service Securities, Inc.
vestor
some¬
June 3,
■'
$1,600,000
Co., Inc., New York. Offering—Expected
time in August.
noon.
Price—The certificates will be offered at
discount of 17.18%
primary
•
Washington Land Co.
filed
3
,
share.
bidders:
Underwriter—Parker, Ford & Co., Inc., Dallas,
North
Price—
the payment of
machinery and equipment; and $118,752 for
working capital, promotion and advertising.
Office—
52 Broadway, New York.
Underwriter — G. Everett
American Merchandising Co.
(letter of notification) $300,000 of 7% convert¬
ible sinking fund debentures due July
1, 1965. Price—
At face amount.
Proceeds—To repay short-term loans
and for working capital. Office—118 Cole Street, Dallas,
Texas.
Canning Co., Inc.
ditional
North
Texas.
per
to
& Hutzler
Scheduled
,
Proceeds—About $162,000 will be applied
certain indebtedness; $25,000 for ad¬
$3
purposes.
competitive
/
general
March 25 filed 140,000 shares of common stock.
Oil Shale
stock at their principal
conversion price of
$15 per share. In addi¬
the company is registering 21,000 shares of com¬
stock subject to warrants at
$1 per warrant on June
amount at
in
York.
May 26
Pool
option of the holder into
M
4
and
area,
convertible sub¬
ordinated notes due 1974 and
66,666 shares of common
stock into which the notes are
convertible, to be offered
for public sale by the 15 holders thereof.
The said notes
initially issued on June 10, 1959, are convertible at the
ffi
"
that
Equipment Co.
June 20, 1960, filed
$1,000,000 of 6%
plfc
*
in
'
Patent
National
If
*
business
Wayne, Ind.
National
and
pi
J
tray
June 8, 1960, filed 150,000 shares of common
stock (par
one
cent). Price—$1 per share. Proceeds—Net of this
sale in combination with cash on hand will
be used to
finance the client and sales solicitation
program, and the
balance for general
corporate purposes. Office—68 Wil¬
liam St., New York
City. Underwriters —
1^
W
(7/5-8)
capital. Office — 3002 Brooklyn Ave., Fort
Wayne, Ind.
Underwriter—First Securities Corp., 212 W. Jefferson
St.,
Ft.
! *
Packaging Corp.
(par $1).
Price—$6 per share. Proceeds—To retire $87,000 of in¬
debtedness, to purchase $18,000 of additional machinery
and
equipment, to set up a small plant (at cost of
$28,000) on the West Coast to service the fruit tray and
**
it.
11
National
if
5.'
Fair Corp.
March 30 filed 60,000 of common capital stock
1) }M'
1
incurred
/
share for each five
by
May
j
Lawnservice Corp.
(letter of notification) 100,000 shares of com¬
mon
stock (par one cent).
Price—$3 per share. Pro¬
ceeds— For general corporate purposes.
Office — 410
Livingston Avenue, North Babylon, N. Y. Underwriter
—Fund Planning Inc., New York, N. Y. Offering—Ex¬
pected sometime in July.
I'M!/
I
one new
mined
■
ti
common
Office—Denville, N. J. Underwriter—To be
construction
Jan.
■11 ■
loans
funds.
Office—Pittsburgh, Pa. Underwriter—Eastman Dillon, Union Securities & Co., New
Proceedj—For construction and reduction of in¬
Investing Corp., New York, N. Y.
if'
•
diversified
a
bank
acquisition of LePage's Division of John& Johnson. Any balance will be added to the com-
pany's
Jersey Power & Light Co. (7/19)
filed $5,000,000 of first mortgage bonds,
May 27 (letter of notification) 75,000 shares of common
(par $1). Price — $4 per share. Proceeds — For
general corporate purposes.
Office — 3000 Hempstead
Turnpike, Levittown, L. I., N. Y. Underwriter—General
; ?
;
to
Underwriter—G. H.
Capital Corp.
Fountain
the basis of
—Expected to be received
stock
T
1
1958
retire
with the recent
(jointly); Equi¬
table Securities Corp.; First Boston Corp.; Merrill
Lynch,
Pierce, Fenner & Smith Inc.; Eastman Dillon, Union
Securities & Co., and White, Weld & Co. (jointly). Bids
Netherlands Securities Co., Inc., both of New York City.
ii'
^
of
concerns.
Co., New York,
National
National
>
Investment Act
Proceeds—To
:
by amendment.
Price—To be supplied
held.
presently
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co., Lehman
(8/1-5)
June 9, 1960, filed 240,000 shares of class A common
stock (par $1). Price—$5 per share. Proceeds—For re¬
duction of indebtedness, working capital, and general
corporate purposes. Office — 350 Lincoln Road, Miami
Beach, Fla. Underwriters—J. A. Winston & Co., Inc., and
•
on
Brothers and
intends to provide equity capital
long-term loans as contemplated by the
Small
f'
Light Co. (7/8)
maximum of 16,000 shares of
determined
company
make
at
$25), to be offered to holders of the outstand¬
Information
■w
-■
24
1990.
Capital Corp. (8/8-12)
June 21, 1960, filed 1,000,000 shares of common stock
(par $1). Price—$11 per share. Proceeds—For invest¬
ment.
Office—10
Dorrance
Street, Providence, R. I.
Business—This non-diversified closed-end management
II ^
a
debtedness.
Narragansett
Jj.'W
to
shares
Office—New Britain, Conn.
Underwriter—Putnam 8c Co., Hartford, Conn..
York.
iff
I'll
Papercraft Corp. (7/6) :
;
2 filed 130,063 shares of common stock (par $1),
be offered initially to stockholders of the corporation
the rate of one additional share for each eight shares
June
Gas
general corporate
(7/5-8)
—
ivv
l
18 filed
ing common
ing stock of record May 31, at the rate of one new share
for each three shares held. Arebec Corp., of New York,
which owns 109,278 common shares, has entered into
an
agreement to sell said shares to the underwriter.
Price—To be supplied by amendment. Proceeds—To be
added to company's general funds and will enable it to
use all or part of the proceeds in the reduction of bank
indebtedness. Office
2301 Woodward Ave., Detroit,
Mich. Underwriter—Ladenburg, Thalmann & Co., New
.
Underwriter—None.
shares held. Price—To be supplied by amendment. Pro¬
ceeds—To discharge bank loans, for construction, and for
April 27 filed 217,278 shares of common stock (par $1).
The company proposes to offer 108,000 shares of new
common stock for subscription by holders of outstand¬
is!:y
Britain
stock (par
supplied by amendment.
I
Proceeds—For general corporate purposes, \
reduction of indebtedness and research
Office — 70-31 84th Street,
Glendale, L. I., N. Y. Underwriter—Myron A. Lomas¬
ney & Co., New York City.
v'V '. ^
\i. ;r
son
New
May 9 filed 80.000 shares of class A common stock.
Price—$5 per share.
Proceeds—For general corporate
/<>
Price—$4
and development expenses.
payment of a $2,000,000 bank loan. Office — Sioux
City, Iowa. Underwriter — Cruttenden, Podesta & Co.,
Chicago.
',.
Mustang Lubricant, Inc.
.■«»
St., Omaha, Neb.
150,000 shares of common stock.
the
including
the
ing—Imminent.
;yif
16th
'
(7/15)
Inc.
•'
share.
per
share for each four shares held.
new
of common stock.
Price—To be supplied by amendment. Proceeds—Toward
outstanding note, purchase of land,
equipment and for working capital. Office—546 Equi¬
table Building, Baltimore 2, Md. Underwriter—Ameri¬
can Diversified Securities, Inc., Washington, D. C. Offer¬
yt-f
North
1521
an
pay
one
^ Needham Packing Co. June 28,
1960, filed 200,000
April 22
r ii*
May 11 filed 111,951 shares of common stock, to be of¬
fered for subscription by holders of outstanding common,
at the rate of
Pacotronics,
June 2 filed
■
(letter of notification) 150,000 shares of com¬
stock (par 10 cents).
Price—$2 per share. Pro¬
'ill
(7/5-8)
—
$10 per share. Proceeds — To be added to the
general funds of the company and will be used to finance
larger inventories and accounts receivable.
Office—
Underwriter—Paul
Building, Jackson, Mich.
Chicago, 111.
Mills Co.
Price
C. Kimball & Co.,
•
if
11
of 6%%
Consolidated
Nebraska
the
purchase of additional machinery and equipment to be
installed in certain new manufacturing plant facilities,
construction of which has been completed; the balance
of the proceeds will be used for general corporate pur¬
poses.
Office—151 Spring Street, N, W., Atlanta, Ga.
Underwriters—W. C. Langleyj & Co., New York; and
Courts & Co., Atlanta and New York.
•
Service, Inc.
26 filed 100,000 shares of second cumulative pre¬
ferred stock—65c convertible series, $5 par—and $1,000,-
;
Navigation Computer Corp.
Haven & Townsend, Crouter & Bodine, both of Phila¬
delphia, Pa.
Dillon, Union Securities & Co., New York.
Model Finance
by
•
Mississippi River Fuel Corp. (7/7)
June 1 filed $24,000,000 of sinking fund debentures due
1980. Price—To be supplied by amendment. Proceeds—
i'|l
thereof and
writer—None.
of the debentures prior to maturity.
Proceeds—For repayment of short-term debt. Under¬
writer—The First Boston Corp., New York, managing.
proximately 93%
.-Thursday, June 30, 1960
.■
,
per
share. Proceeds—For
general corporate purposes. Office—Whitehead Avenue,
South
River,
N.
J.
Underwriter—Pearson,
Murphy
&
Co., Inc., New York, N. Y.
•
Polycast Corp. (7/11-15)
May 19 filed $400,000 of 6%% convertible subordinated
debentures and 71,364 shares of common stock, of which
the
debentures and 20,000
shares of
common
stock will
be offered
publicly; 15,000 shares are issuable upon the
exercise of warrants and the remaining 36,364 shares
are issuable upon conversion of the debentures.
Price—
For
debentures, 100%; price for common stock will be
supplied by amendment. Proceeds—To be used in part
($325,000) to purchase equipment, and the balance will
be used for working capital purposes. Office—69 Southfield Ave., Stamford, Conn. Underwriters—M. L. Lee &
Co.,
Inc.
and
Milton
D.
Blauner
&
Co.,
Inc.,
both of
New York.
Powertron
Ultrasonics, Inc.
20, 1960 filed 205,000 shares of common stock.
Price—$2 per share. Proceeds—$143,668 will be used to
retire three short-term notes, and the balance of approxi¬
mately $256,832 will be used to provide additional work¬
ing capital. Office — Roosevelt Field Industrial Park,
Garden City, L. I., N. Y. Business — Company develops
June
and markets
ucts
a variety of electrical and electronic
prod¬
incorpoarting ultrasonic principles. Underwriter—
None.
•
Progress Electronics Corp.
May 25 (letter of notification) 200,000 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—To
develop and produce proprietary items in the electron¬
ics field. Office—1240 First Security Building, Salt Lake
City, Utah. Underwriter—Binder & Co., Inc., 541 South
Spring Street, Los Angeles, Calif.
Offering—Imminent.
Provident Fund for Income,
Inc.
filed 400,000 shares of common stock (par $1).
PriceM-To be supplied by amendment. Proceeds—For inDec. 23
Number 5964
191
Volume
...
The Commercial and Financial Chronicle
ital necessary
vestment. Office—3 Penn Center Plaza, Philadelphia, Pa.
/Underwriter—Provident Management Corp., same ad¬
dress. Offering—Imminent. .
,
(2841)
in the financing of increased inventories
7 term indebtedness; and to develop citrus groves.
and receivables incident to the increased sales volume of
Underwriter
Dupont.
New York.
Puerto Rico Telephone Co.
June 23, 1960, filed lu0,000 shares of common stock, to
be offered for subscription of holders of its outstanding
—
O'Neill
George,
Co.,, Inc.,
&
ber
Co., Inc.
of notification)
(letter
50,000
shares
of
stock (par $1). Price — $4 per share.
Proceeds — For general corporate purposes. Address—
Biddeford, Maine.
Underwriters — J. L. Brady & Co.,
B
class
common
Mass. and David
Worcester,
Pyramid Electric Co.
•
^ Seaboard
G. Means, Bangor, Maine.
(7/18-22)
Broadcasting &
shares
shares
per
.
are
stockholders.a
4
distributed
Price—$5
as
per
dividend
a
share.
to
its
•
44th
East
Laird & Co. Corp.,
St., ;New
New York.
York.
*
2,800
pay
Underwriter—
Reilly-Wolff Associates, Inc.
14, 1960 (letter of notification) 43,000 shares of
class A stock (par one cent). Price—$5 per share. Busi¬
ness—The company is an integrated furniture manufac¬
4
June
turer, specializing in outdoor and office types of furni¬
ture. Proceeds—For general corporate purposes. Office
St., New York, N. Y. Underwriter—Arden
Perin & Co., Inc., New York, N. Y. Offering—Expected
—120 E.'32nd
sometime in August.
Partnership In¬
terests, to be offered in units. Price—$10,000 per unit.
Proceeds—To purchase hotels in Chicago from a Webb
& Knapp subsidiary.
Office—111 West Monroe Street,
Chicago, 111. Underwriter—Lee Higginson Corp., New
of common stock, of which
117,000 shares are to be offered for public sale by the
issuing company, and the remaining 145,000 shares will
sold
for
the
account
of
certain selling stockholders.
supplied by amendment.
Proceeds—For
general corporate purposes relating to the production
and sales of motion picture films of the Roller Derby,
and the balance for working capital. Office—4435 Woodley Ave., Encino, Calif. Underwriter—To be supplied by
be
amendment.
•
Rosauer's Super Markets, Inc.
(7/5-8)
June 1
lative
ment and
share.
Office—751
Underwriter—Foster
&
W. 8th South, Salt Lake City,
Blyth & Co.,
Inc.
stock. Price—
Proceeds—For the drilling of three wells
working capital. Office—2720 West
Mockingbird Lane, Dallas. Underwriter — Elmer K.
Aagaard, 6 Salt Lake Stock Exchange Bldg., Salt Lake
City, Utah.
$2 per share.
and the balance for
it Sprayfoil Corp.
22, 1960, filed 250,000 shares of common stock.
Price—$2 per share. Proceeds—Approximately $250,000
will be used in the development, engineering and design
ceeds
Utah.
new
products, approximatly $150,000 will be used in
products of the company and for
the manufacture of the
purchase of necessary tools and equipment, and
approximately $93,443 will be added to the company's
working capital. Business—The company engages in the
development, engineering and exploitation of products
and uses applying the principles incorporated in patents
covering the so-called "Coanda airfoil technique" of
the
Office—2635 Louisiana
Minneapolis, Minn. Underwriter—None,
atomizing liquids.
Ave., South,
it Steck Co.
June 24, 1960, filed 60,000 shares of common stock, of
which 30,000 shares are to be offered for public sale by
the issuing company and 30,000 shares are now outstand¬
Under¬
Price—To
—
nent.
'
1
Sierra Electric Corp.
(7/6-7)
of common stock, of which
80,000 shares are to be sold for the account of the
issuing company and 20,000 shares are to be sold for
the account of the present holder thereof.
Price—$9
for
share (par $1). Proceeds—To reduce
bank loans and
Calif. Underwriter
New York City.
working capital. Office—Gardena,
—Marron, Sloss & Co., Inc.,
(7/6)
debentures due July 1, 1985.
Proceeds—To pay some $2,300,000 cf outstanding bank
loans and for construction expenditure. Office — 220
South Virginia St., Reno, Nev. Underwriter—To be de¬
termined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and White,
Weld & Co. (jointly); Stone & Webster Securities Corp.
and Dean Witter & Co. (jointly). Bids—Expected to be
received on July 6, at 49 Federal St., 8th floor, Boston,
Mass., up to 10:30 a.m. EDT.
Information Meeting—
Scheduled for July 1 at 11:00 a.m. EDT. at 90 Broad St.,
19th floor, New York City.
Sierra
Pacific
Power Co.
Skyline Homes, Inc.
(7/12)
115,000 shares of class A common stock
(par $1). Price—To be supplied by amendment. Pro¬
ceeds—To be added to the company's working capital
and used for general corporate purposes.
Office—2520
By-Pass Road., Elkhart, Ind. Underwriter—Rodman &
Renshaw, Chicago, 111. •
■ T
April
15 filed
(Herman H.) Inc.
May 24 (letter of notification) 82,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office—2326 Nostrand Ave.,
Brooklyn, N. Y. Underwriters—First Broad Street Corp.;
Smith,
V. S. Wickett & Co.,
S.A.F., Ltd.
May 6 filed $303,000 of partnership interests, to be of¬
fered for sale in units. Price—$500 per unit. Proceeds—
To acquire fee title to certain land in St. Augustine, Fla.,
upon which will be constructed a 54-unit Howard John¬
common
ceeds
—
stock
(letter of notification) 150,000 shares of
(par 10 cents). Price—$2 per share. Pro¬
For general corporate
purposes.
Office
—
992
Securities,
Inc.,
1457 Broadway, New York
36, N. Y.
swimming pool and re¬
(Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par $1),
of which 1,543,000 shares are to be issued and sold for
the account of the company, and 457,000 shares, repre¬
senting outstanding ^stock, to /be sold for the account!
of certain selling -stockholders. Price—To be supplied by
amendment.
Proceeds—-To retire 70% of the common
stock outstanding at the date of the stock offering; tc
Invest in
the capital stocks of six of the company's
seven bank subsidiaries; to repay a bank loan of $6,400,-
Lau¬
Sottile, Inc.
derdale, Fla. Underwriters—Radice Securities Corp. and
Jerry Thomas & Co., Inc., Palm Beach, Fla. Offering—
Imminent.
•
Safticraft Corp., Patterson, La. (7/8-11)
April 29 filed 275,000 shares of common stock
share.
:
it Sunbury Milk Products Co.
June 20, 1960 (letter of notification)
20,000 shares of
common stock
(par $5). Price—$15 per share. Proceeds
—To liquidate short-term bank loans and for working
capital. Office—178 Lenker Ave., Sunbury, Pa.
Under¬
writer—Hecker & Co., Philadelphia, Pa.
Super Food Services, Inc.
shares-convertible series
$1 par. The com¬
pany proposes to sell 50,000 shares through a group of
underwriters headed by Wm. H. Tegtmeyer & Co., Chi¬
cago, 111. on a firm commitment basis; and by a preoffering subscription Central Securities Corp. has con¬
ditionally agreed to purchase 10,000 such shares. Price—
$25 per share for public offering. Proceeds—To provide
May
10
000; to add to working
filed 60,000 preferred
($1.50 annual cumulative dividend),
the funds to exercise an
option to purchase 72,600 of the
113,003 issued and outstanding shares of common of
Progressive Wholesale Grocery Co., at a maximum ag¬
gregate price of $1,333,333. Office—Chicago, 111.
•
Swimming PooB Development Co.,
Inc.
(7/11)
April 15 filed 250,000 shares of common stock (par $1).
Price
$5 per share. Proceeds — Principally for addi¬
—
tional
working
capital.
Under¬
Office—Florence, Ala.
New York.
writer—Marron, Sloss & Co., Inc.,
System Meat Co.
150,000 shares of common stock.
Price—$5
June 2 filed
share.
Proceeds —For payment of employees' sal¬
aries, first mortgage installment, accrued officers' sal¬
aries, and the balance for working capital.
Office —
Newcastle, Wyo.
Underwriter—Purvis & Co., Denver,
Colo.
Offering—Expected sometime in July.
per
June
Springfield Ave., Irvington, N. J. Business—The company
manufactures cosmetics and toiletry items. Underwriter
—Harwyn
•
filed
10
Talley Industries,
all of New York.
it Softol, Inc.
17, 1960
Stelma, Inc.
May
March 29 filed 100,000 shares
per
(7/25-29)
175,000 shares of outstanding common,
stock.
Price—To be supplied by amendment.
Proceeds
—To selling stockholders.
Office •— Stamford, Conn.
Underwriter—Amos Treat & Co. Inc., New York City.
•
"
•
holders thereof.
be
St., Austin, Tex. Business—The company is engaged in
the printing and publishing business and in the sale of
office supplies and equipment. Underwriters—Rauscher,
Pierce & Co., Inc., Dallas, Tex.
(par 10 cents). Price—$1.50 per share. Pro¬
For general corporate purposes. Office — 693
Broadway, New York, N. Y. Underwriter — Pearson
Murphy & Co., Inc., New York, N. Y. Offering—Immi¬
Mar¬
(par 10
Proceeds—The company
proposes to use $50,000 to'expand its efforts in the sale
of Safticraft boats nationally; $250,000 for reduction of
short-term borrowings; and the remaining $293,500 to
be advanced to du
Pont, Inc., as additional working cap¬
of
(letter of notification) 200,000 shares of com¬
June
Co.. Inc.;
Southwestern Oil Producers,
stock
writer—Morris Cohon & Co., New York.
per
Halsey, Stuart &
March 23 filed 700,000 shares of common
Bldg., Salt Lake City, Utah.
Globus, Inc.; Russell & Saxe, Inc.,
Price—$3
actually expended from income
in the treasury of the company
tively expected to be received on July 26. Information
Meeting—Scheduled for July 22 at 10:00 a.m.. EDST at
the Bankers Trust Co., 16 Wall St., New York City.
Inc.
Inc., and Street & Co., Inc.,
cents).
bidders:
able
Service Instrument Corp.
mon
payable, as well as for new tooling, research,
of an officer's loan, and general corporate
Office—93 Worth Street, New York. Under¬
Motor Lodge and restaurant,
money
Inc.; The First Boston Corp.; White, Weld & Co.; Mer¬
rill Lynch, Pierce, Fenner & Smith Inc.
Bids—Tenta¬
(7/5-8)
of accounts
lated facilities. Office—60 East Coral Center, Fort
money
other
in 1960 or any prior year.
Under¬
writer—To be determined by competitive bidding. Prob¬
additional receivables. Office—818 W. 7th
repayment
son
from
supplied by amendment.
Proceeds—To
supply funds for working capital. Office—205 West 9th
• Roto American
Corp.* (8/1-5)
May 27 filed 75,000 shares of common stock (par $1) to
be offered for cash sale to the public, and 44,283 shares
to be issued in exchange for common and preferred
shares of four subsidiaries.
Price—To be supplied by
amendment. Proceeds—To be used largely for reduction
purposes.
or
for similar purposes
ing and are to be offered by the present
inventory for two proposed new super markets.
Wash.
shall, Seattle, Wash.
reimburse
tal Bank
preferred stock (par $10).
Price—
Proceeds—To purchase fixtures, equip¬
Office—Spokane,
used to finance in part the cost incurred,
incurred, in connection with such program and
to be
or
to
writer—Continental Securities Corp., Suite 627 Continen¬
convertible
per
advances
funds for
construction and expansion. The balance of the net pro¬
it Seneca Manufacturing Corp., Inc.
June 23, 1960 (letter of notification)
60,000 shares of
common stock (par $1). Price—$5 per share. Proceeds—
To repay unsecured notes, for inveritory, purchase of
additional machinery and to increase capital surplus.
(letter of notification) 28,000 shares of 6% cumu¬
$10.50
Co.
May 26 filed $3,500,000 of
Roller Derby TV, Inc.
March 30 filed 277,000 shares
Price—To
of Aug. 1, 1960. Said indebtedness represents
made 10 the company to provide temporary
Inc., New York. Offering—Expected mid-to-late July.
•
'*•
Republic Graphics Inc.
April 29 (letter of notification) 75,000 shares of common
stock (par 10 cents).
Price—$4 per share. Proceeds—
Fof general corporate purposes.
Office —134 Spring
Street, New York, N. Y. Underwriters—Theodore Arrin
& Co., inc., 82 Beaver Street, New York, N. Y.; T. M
Kirsch & Co., and Robert A. Martin Associates, Inc.,
New York", N. Y.
Offering—Imminent.
be
its parent, Pacific Lighting
to approximate $14,000,000 as
to
Corp., which is expected
May 20 filed 90,000 shares of $.50 cumulative convertible
preferred stock, ($.01 par) and 90,000 shares of class A
common stock
($.01 par).
It is proposed to offer these
shares in units, each consisting of one share of preferred
at $7 per share and one class A share at $3 per share,
or $10 for the unit. Proceeds—To complete construction
of new shopping centers. Office — 619 Powers Bldg.,
Rochester, N. Y. Underwriter—John R. Boland & Co.,
March 23
(7/5-8)
York.
Finance
Sea-Highways, Inc.
•
Republic Ambassador Associates
April 29 filed $10,000,000 of Limited
carry
indebtedness
short-term
ceeds will be
Seaway Shopping Centers,
Proceeds—To
(7/26)
June
$110,000 bank note and for general corporate purposes.
Office—304
num¬
not to exceed
May 9 filed 150,000 shares of common stock. Price—$2
per share. Proceeds—For working capital. Office—PanAmerican Bank Bldg., Miami, Fla. Underwriter—John R.
Maher Associates, of New York.
be publicly offered and 187,392
to be purchased .by Christiana Oil at $4.75
share \and
undetermined
(par $1)
St., Los Angeles 17, Calif. Underwriters—Lehman Bros,
and Blyth & Co., Inc., both of New York.
to
are
to
and
V.:
March 30 filed 487,392 shares of common stock, of which
300,000
an
and will be available to pay current indebtedness
pany
Development Corp.
(7/H-15)
stock
common
23, 1960, filed $40,000,000 of sinking fund deben¬
tures due 1980. Price—To be supplied by amendment.
Proceeds—To be added to the general funds of the com¬
price of $3.25 per share.' The warrants were issued in
and after May, 1954, in connection with a previous pub¬
lic offering and included 46,000 to the underwriter, S.
D. Fuller & Co., and 46,000 to the company's officers
and employees., At present there are 89,675 warrants
outstanding. Office—52 Broadway, New York.
Reeves
First
June 23, 1960, filed $23,000,000 of first mortgage bonds.
Proceeds—To be used to repay in full the company's
June
April 1 filed 89,675 shares of common stock to be issued
to holders of the company's outstanding stock purchase
warrants at the rate of one share for each warrant at a
;•
of
(7/11-15)
May 27 filed 100,000 shares of common stock4(par 10
cents). Price—$4.50 per share. Proceeds—For working
capital.
Office — 2202 Main Street, Jacksonville.
Fla.
Underwriter—Pistell, Crow Inc., of New York City, for¬
merly Pistell, Schroeder & Co.
equipment used or to be used for said program.
Tanca St., San Juan, Puerto Rico. Under¬
(J. L.)
shares
Sav-A-Stop, Inc.
Office—261
1960
of
St., Garfield, N. J.
writer—None.
16,
Development Corp.
$300,000. Price—To be supplied by amendment. Proceeds
—For mining expenses. Office — c/o Wallace F. McQuade, Pres., 246 Beaconsfield Blvd., Beaconsfield, Que¬
bec, Canada. Underwriter—P. Michael & Co., 69 Passaic
general funds of the company, which will be used in
furtherance of a five year expansion and improvement
program initiated in 1959, and to repay indebtedness to
banks and ITT incurred for the purchase of materials
Putnam
Saucon
April 28 (letter of notification)
stock on the basis of one neW share for each five
held. Price—To be supplied by amendment. Pro¬
ceeds—Together with other funds, will be added to the
June
East
it Southern Counties Gas Co. of California
•
shares
and
Office
Street, Miami, Fla. Underwriter
—Bear, Stearns & Co., New York, Offering—Indefinite.
South
—250
4
^
common
41
capital; to retire certain long-
Price
14,
—
Inc.
filed 150,000 shares of common
To be supplied by amendment. Proceeds
1960,
stock.
—
For
general corporate purposes, including the reduction of
indebtedness, research and development expenses, and
the acquisition of machinery and equipment. Office—
Cheshire, Conn.
Underwriter—Adams & Peck, New York
City.
it Techno Fund, Inc.
June 24, 1960, filed 400,000 shares of common stock. Price
—$12.50 per share. Proceeds—For investment. Office—
50 West Gay St., Columbus, Ohio. Business—A closedend, non-diversified management investment
Underwriters—The Ohio Company, Columbus,
Merrill, Turben & Co., Inc.,
company.
Ohio and
Cleveland, Ohio.
Telephone & Electronics Corp. (7/25-29)
June 14, 1960 (letter of notification) 52,980 shares of
common stock (par 25 cents). Price—$5 per share. ProContinued
on
page
42
42
the Commercial and FinaricialChronicle
(2842)
general corporate purposes. Office—7 East
St., New York 17, N. Y. Underwriter—Equity Secu¬
N. Y.
ceeds—For
42nd
—To
rities Co., New York,
Business—Wholesale
retail
and
distribution
&
Co.,
York.
<>
of
'
small business concerns.
Office—705 Lamar
Blvd., Austin, Texas. Underwriter—Dempsey-Tegeler &
Co., St. Louis, Mo.
,y;„
-
Texas Eastern Transmission
■
;v,.;/,/•
Corp.
April 11 filed $25,000,000 of debentures, due 1980. Price
supplied by amendment. Proceeds—For the re¬
—To be
duction
of
indebtedness
and
for construction expenses.
Underwriter—Dillon, Read &
Co., Inc., New York City. Note—This offering has been
Office—Houston,
Texas.
indefinitely postponed.
Thurow
1
Electronics, Inc.
March 28 filed 200,000 shares of class A common stock,
(par $2.50) of which 100,000 shares are to be offered for
public sale by the issuing company and the balance by
H. M. Carpenter, President. Price—$3 per share. Pro¬
ceeds—To be used as additional working capital for in¬
ventory
and
business
expansion
purposes.
working capital. Office
•
United States Boat
28
Corp.
Inc. /
% % subordinated sinking
fund debentures due July, 1970 (with common stock pur¬
chase warrants). Price—100% of principal amount. Pro¬
ceeds—$100,000 will be used for payment of a bank loan
incurred to help finance the disposal plant and an esti¬
mated additional $50,000 to complete the plant; $109,000
to retire 10% debentures issued in payment of certain
obligations of the company for services rendered; $25,000
for
a
sales program in connection with the Florida
homes; and the balance for working capital to finance
the continued development of the residential community
in Sarasota and the construction of homes in West Palm
Beach, and the development 'of a shopping ceriter in
Selden, L. I. Office—526 North Washington Blvd< Sara¬
(7/11-15)
350,000 shares of common stock to be
publicly offered. Price—$2 per share. Proceeds—$221,826 will be
applied to the repayment of loans to United
Corp. which were used for general corporate
purposes, and the balance will be utilized for working
Office—121
South Water, Tampa, Fla. Underwriter—Donald V. Stabell, of St. Petersburg, Fla. Offering—Imminent.
•
Marion
2:00
company's general funds and will be
additions and improvements. An addi¬
tional $300,000 is to be provided through long term
financing during the current year. Office '— 319 West
Market Street, Lima, Ohio. Underwriter—None.
*
'
of 4^% cumulative pre¬
($100 par). Price—To be offered for sale
in the over-the-counter market, or otherwise by public
or
private sale at $95 per share, or such lesser price
or prices which may be obtained. Proceeds—To
selling
stockholders. Office—602 Florida Theater Bldg., Jack¬
Price
—$1 per share. Proceeds—$46,098 will be applied to
the acquisition of 493 acreas of land in Fairfield Town¬
ship, Hyde County, and $15,000 for payment of the
July instalment on acquisition of about 12,726 acres in
Hyde County; $500,000 for purchase and installation of
machinery, equipment and saw mill and $75,000 for
working capital in connection with lumber operations;
$65,000 for January 1961 instalment payment on the
12,726 acres; and the balance to purchase livestock,
planting feed and pasture, raising livestock, and addi¬
tional working capital. Office—Fairfield, N. C. Under¬
writer—Participating dealers will receive 15 cents per
share.
if Townsend Investment Co., Inc.
June 20, 1960 (letter of notification) $300,000 of 6% first
mortgage bonds and 3,000 shares of common stock (par
$5) to be offered in units consisting of one $1,000 bond
and 10 shares of common stock. Price—$1,000 per unit.
America
•
$1,)
(7/25-29)
Associates
To
new
(7/14)
share for each 15 shares held. Price
wood, N. J.
York, N. Y.
bank
loans, and the balance for working capital. Office
—Palo Alto, Calif. Underwriter—Dean Witter & Co., San
Francisco, Calif.
•
Underwriter—None.
Trans Tech Systems, Inc.
29 filed 65,000 shares
March
one
of
common
stock
(par
cent). Price—$10 per share. Proceeds—For general
purposes. Office — 5505 Wilshire Blvd., Los
Video Corp.
June 8, I960 (letter
•
withdrawn
on
June
Whitmoyer Laboratories, Inc.
shares of common stock and $500,000
of 6% subordinated debentures, due 1977, with warrants
for the purchase of 10,000 additional common shares at
$5 per share.
Price — For the debentures, 100% of
principal amount; for the 85.000 common shares, '$6
per share.
Proceeds—For general corporate purposes,
including the reduction of indebtedness, sales promo¬
tion, and equipment.
Office—Myerstown, Pa.
Under¬
writer—Hallowell, Sulzberger, Jenks, Kirkland & Co.,
Philadelphia, Pa.
Tri-Point
March 15
mon
of
Jan. 28 filed 85,000
stock (no par).
'
27;
refiling is
ex¬
• Waltham
Co., San Diego, Calif.
Precision Instrument
Co., Inc. (7/5-8)
April 15 filed 700,000 shares of common stock (par $1).
Plastics, Inc.
(letter of notification) 150,000 shares of
com¬
stock (par 10 cents).
Price—$2 per share. Proceeds
general corporate purposes. Office—175 I. U. Willets Road, Albertson, L. I., N. Y. Underwriter—Martinelli, Hindley & Co., Inc., New York, N. Y. Offering —
—For
Imminent.
•
Triumph Storecrafters Corp. (7/5-8)
May 18 filed 145,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—For general cor¬
porate purposes. Office—Houston, Texas. Underwriters
<—Hardy & Hardy, New York City, and First Southeast¬
ern Co., Atlanta, Ga.
Underwriters National Assurance Co.
May 12 filed 240,000 shares of common capital stock.
Price—$7.50 per share. Proceeds—For general corporate
purposes, including payment of operating expenses, the
It is
proposed that this offering will be on a subscription
to the company's present common stockholders.
basis
Price—To be supplied by amendment. Proceds—$600,000
to pay the balance of the purchase price for Boesch
•
Manufacturing Co., Inc. stock; $350,000 to pay the 5%
chattel mortgage note held by the Secretary of the U. S.
Treasury as assignee of the Reconstruction Finance Corp.$200,000 to pay the 6% secured notes issued as part pay¬
ment for the stock of Electro-Mec Laboratory, Inc.; and
the balance for working capital, and othei; corporate
purposes. Office—221 Crescent St., Waltham, Mass. Un¬
derwriter—Schweickart & Co., New York.
if Warner Electric Brake & Clutch Co.
June 29, 1960, filed 154,916 outstanding shares of
Broadway, New York City.
•
State
equipment, electric wheel brakes for mobile homes and
trailers, and electric compressor and fan clutches used in
automotive air conditioning and cooling systems. Under¬
authorities
for
investigation and examination by
authority to transact in¬
surance business).
Office—1939 North Meridian St., In¬
dianapolis, Ind. Underwriter—David L. Johnson & As¬
sociates, Inc., Indianapolis, Ind.
it to procure the certificate of
United Aero Products Corp. (8/1)
June 15, 1960 filed 100,000 shares of
(par 10 cents). Price—$3
ufacture
>
per
common
share. Business—The
of precision metal products for
use
stock
man¬
in the air¬
craft, missile and electronics industries. Proceeds—For
an additional plant, machinery and equipment, the re¬
payment of loans, and the balance for working capital.
Office—Burlington, N. J. Underwriters—L. C. Wegard
& Co. of Levittown, N. J.; Street & "Co.; Inc. of New
York City; Woodcock, Moyer, Fricke & French of Phila¬
delphia, Pa.; First Broad Street Corp., Russell & Saxe
Co., Inc. all of New York City.
and V. S. Wickett &
Company
electrically - actuated
wide variety of industrial
produces
brakes and clutches used in
a
writers—Blunt Ellis & Simmons and
Co., both of Chicago, 111.
business.
Business—Electronics
field.
Yuscaran Mining Co.
May 6 filed 1,000,000 shares of common stock. Price— $1
per share. Broceeds-^-It is expected that some $100,000
Office—2445
Emerald
St., Philadelphia, Pa. Underwriter—Stroud
Co., Philadelphia and New York.
&
will be used to purchase and install
Wells Industries Corp. (7/5-8)
Jan. 29, 1960 filed 300,000 shares of common stock and
warrants for the purchase of an additional 100,000 shares.
Price
—
To
be
'
supplied by amendment.
Proceeds
—
'
Industries, Inc. (7/5-8)
WonderBowl, Inc.
April 14 filed 3,401,351 shares of common stock (par $2).
Price—$2 per share. Proceeds—For purchase of certain
property, for constructing a motel on said property and
various leasehold improvements on the property. Office
—7805 Sunset
Boulevard, Los Angeles, Calif. Under¬
writer—Standard Securities Corp., same address.
Bacon, Whipple &
if Waterman Products Co., Inc.
June 24, 1960, filed 100,000 shares of common stock (par
$1). Price—$5 per share. Proceeds—To be used primari¬
ly to accelerate the development of the company's pro¬
prietary items for the purpose of expanding its commer¬
cial
Win-Chek
April 26 filed 150,000 shares oi class A stock to be
publicly offered, 15,000 shares to be issued pursuant, to
a restricted-stock-option
plan, and 21,500 shares being
registered but not offered at this time. Price—$3 per
share (par 25 cents). Proceeds—To purchase additional
inventory and equipment and the balance to improve the
company's working capital position.
Office —Moonachie, N. J. Underwriter—Michael G. Kletz & Co. (man¬
aging).
com¬
Business
(7/15)
(letter of notification) 80,890 shares of common
(par $1).
Price—$3 per share.
Proceeds—For
general corporate purposes;
Office—151 Odell Avenue,
Yonkers, N. Y.
Underwriter—Equity Securities Co., 39
stock
stock. Price—To be supplied by amendment. Pro¬
ceeds—To selling stockholders. Office—South Beloit, 111.
carrying on of the insurance business, and for working
capital (and including $50,000 which will be certified to
Wilier Color Television System, Inc.
Jan. 29
mon
—
(7/18-22)
•
Underwriter—Norman C. Roberts
was
New
of New York.
statement
pected later in the year.
Glass Boat Corp.
Wheeler Fibre
Co.,
Securities
19 filed 100,000 shares of common stock (par 10
cents). Price—$4 per share. Proceeds—$35,000 for pur¬
chase of machinery and equipment; $18,000 for required
deposits on the company's lease, insurance and utilities;
$185,000 for working capital and the balance for expan¬
sion of production facilities. Office—450 Zerega Avenue,
Bronx, N. Y. Underwriter—Morris Cohon & Company,
'
Angeles 48, Calif. Underwriter—Myron A. Lomasney &
Co., New York. Note—The underwriter states that this
common
Underwriter—Jacey
May
notification) 60,000 shares of
Price—$5 per share. Proceeds—
To pay "otes, for expansion, and equipment, and the
baJo^e for working capital. Address—San Diego, Calif.
corporate
Ave., Racihe, Wis.
Inc.
Westmore,
be
— P.
O. Box 68, Townsend, Tenn.
Underwriter—Davidson & Co., Inc., Knoxville, Tenn.
ing capital. Address
Mound
Sachs & Co. of New York City..
May 9 (letter of notification) 150,000 shares of common
stock (par $2). Price—$2 per share. Proceeds—For gen¬
eral corporate purposes. Office—i37 South Ave., Fan-
if Varo Mfg. Co.
June 17, 1960, (letter of notification) 35,000 shares of
capital stock (par $5). Office—$6.90 per share. Proceeds
—For working capital.
Office—c/o Robert L. Jordan,
President, 647 W.-Ridgewood Drive, Garland, Texas.
Proceeds—To pay off a present mortgage and for work¬
150,000 shares are to*be offered for the
UnderwriterNote—This
company was formerly called the Western Printing and
Lithographing Co. Offering—Expected in late July, v
supplied by amendment. Proceeds —For con¬
struction, new machinery, the retirement of outstanding
—
Publishing Co., Inc.
of which
Goldman,
May 24 filed 216,645 shares of capital stock to be of¬
fered for subscription by stockholders of record July 14,
at the rate of one
Z
■
17, I960 filed 362,114 shares of common stock (par
Office—1220
St., N. W., Washington, D. C. Un¬
John C. Legg & Co., Baltimore and New
York.
Varian
■"'//■
including plant improvement and additional equipment.
Office—1832 M
—
''•■/*/
issuer, and the remaining 212,114 shares are outstand¬
ing and will be offered for the account of selling stock¬
holders. Frice—To be supplied by amendment. Proceeds
—For the general funds for general ;qorporatqrpurposes,
16, 1960 filed 1,000,000 shares of common stock (par
$1). Price — To be supplied by amendment. Proceeds—
Primarily to develop and expand the company's busi¬
derwriter
-
Western
June
June
ness.
and New
Equitable Securities Ce^o., Nashville, Tenn..
York/
of
Co.
the
■if Western Kentucky Gas Co.
June 22, I960, filed 55,000 outstanding shares, of common
stock (par $5). Price—To be supplied by amendment.
Proceeds—To selling stockholder (Henry L. Hillman of
Pittsburgh, Pa.). Business—Operating public utility. Ad¬
dress—608 Frederica St., Owensboro, Ky.. Underwriter-
ferred stock
Insurance
Price—$17.50 per share. Proceeds—To
EDT.
to
used for property
■
Life
p.m.
added
be
Universal Marion Corp.
March 29 filed 31,361 shares
Annuity
record
1960, at the rate of one new share for each 10
shares then held with rights to expire on July 22, at
.
Variable
offered
June 6,
sonville, Fla. Underwriter—None,
Three-L-Corp.
Co.
West Ohio Gas
May 19 filed 43,048 shares of common stock being
for subscription by its common stockholders of
Corp.
April 15 filed 435,120 shares of common stock (no par),
being offered for subscription by common stockholders
of record June 10, at the rate of one new share for each
four shares or fraction thereof with rights to expire on
July 11 at 3:30 p.m. (EDT). Price—- $13.50 per share.
Proceeds—To be added to the general funds of the com¬
pany and be available for use in developing the com¬
pany's tract of land near Tampa, Fla., for working capital
and for possible acquisition of other properties. Office—
602 Florida Theatre Bldg., Jacksonville, Fla. Underwriter
March 24 filed 3,500,000 shares of common stock.
Underwriter—Michael G. Kletz & Co., Inc.,
Fla.
sota,
.
New York.
capital, including a later repayment of $45,000 to U. S.
Pool Corp.
Office —27 Haynes Avenue, Newark, N. J.
Underwriter—Richard Bruce & Co., Inc., New York.
—None.
Los
1960 filed $550,000 of 7
June 17
filed
Universal
6505 Wilshire'Boulevard,
—
Wenwood Organizations
Inc.
170,000 shares of common stock (no
par), of which 85,000 shares are for public offering and
85,000 are outstanding and are to be offered for the
account of present holders/Price — To be supplied by
amendment. Proceeds—Of the public sale, for working
capital and general corporate purposes. Office — 883
North Cassady Ave,, Columbus, Ohio. Underwriter—R.
W. Pressprich & Co., New York City. Offering—Expect¬
ed sometime in August.
March
construction, equipment, and
Angeles, Calif. Underwriter — Thomas Jay Winston &
Co., Inc., 9235 Wilshire Boulevard, Beverly Hills, Calif,
and A. T. Brod & Co., New York City. •
f
corporate pur¬
States Pool
• Texas Capital Corp.
(7/11-15)
May 4 filed .*50,000 shares or common stock (par $1).
Price—To be supplied by amendment. Proceeds—To be
used to provide investment capital
and management
services to
general
United Sheet Metal Co.,
Securities Co., Inc., both
and Netherlands
Inc.
and for
June 16, 1960 filed
retail electronics parts and components. Office—236-246
17th Street, New York. Underwriters—J. A. Winston
of New
loans
Office — 808 Memorial Drive, Cambridge, Mass.
Underwriter—Smith, Barney & Co., New York, N. Y.
pay
outlet.
bank
certain/debts, with the
remainder to be used for
poses.
if Terminal Electronics, Inc. ,
June 24, 1960, filed 166,668 shares of capital stock (par
25 cents), of which 83,334 shares are to be offered for
public sale for the account of the issuing company and
the balance for the account of William Filler, President.
Price—$6 per share. Proceeds—$190,000 is to be used to
the remaining balance of its obligation incurred in
connection with the purchase of Terminal stock from the
Estate of Frank Miller; $100,000 to repay a bank loan;
and the balance for general corporate purposes, includ¬
ing the obtaining and equipping of an additional retail
retire
Thursday, June 30, 1960
$350,876 will be used to retire
if United Research Inc. (7/8)
!
June 17, 1960 (letter of * no citication) 30,000 shares of
common stock (par $2). Price—$10 per share. Proceeds
Continued from page 41
...
a
mill for the proc¬
essing of ore; $60,000 for rails, ties, rail cars and related
equipment; $10,000 for rebuilding roads; $30,000 Tor
transportation equipment; and $655,000 for working cap¬
ital. Off ice~-6815,Tordera St., Coral Gables, Fla. Under*
writer—None.'
'
•
'1
<
-
•'»
Number 5964
191
Volume
.
.
.
(2843)
The Commercial and Financial Chronicle
Hawaiian Electric Co.,
Prospective Offerings
Acme
June
planning
Steel Co.
perhaps during the third quarter of this year.
It may
possibly take the form of a $5,000,000 preferred stock
offering, and a $4,500,000 issue of common stock to be
issued on a rights basis. Office—900 Richards St., Hono¬
company's annual report stated that capital
improvements during 1960-63, inclusive, have been proj¬
ected to cost between $40,000,000 and $45,000,000.
It is
anticipated that a substantial proportion of this money
will be forthcoming from depreciation and retained
earnings. In addition, the sale of $10,000,000 of preferred
stock in 1960 is planned to supply a part of these over¬
all capital requirements. Office—Chicago, 111.
March 25 the
Alberta Gas Trunk Line Co.
Hayes Aircraft Corp.
12 it was reported that an issue of convertible de¬
is being discussed and may occur in the next
few months. Office—Birmingham, Ala. Possible Under¬
writer—Sterne, Agee & Leach, Birmingham,
000.
the
March
on
(7/20)
July 20 by the Road for the
purchase from it of $4,815,000 of railroad equipment
trust certificates. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
Eastman
Bros.
10 it was announced that the company plans no
financing this year, but there would be some in
plans
For con¬
City. Un¬
it
30
timing set
-
subscribe to convertible deben¬
This type of financ¬
at the Chase Manhattan Bank, 43 Exchange
a.m.,
?
tion.
service facilities in
a
Probable
Florida
June
1
further
it
would
tained
that the company
financing in 1960 approximating
new
money.
K.V.P.
$25,000,000 and
approximately $50,This company on May 31 floated
New
(10/20)
reported that $25,000,000 of first mort¬
gage bonds will be sold by this utility. Proceeds—For new
construction and repayment of bank loans. Underwriter
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.LKidder, Peabody & Co.
and Merrill/Lynch, Pierce, l/enner & Smith Inc. (joint¬
ly); First Boston Corp.; Eastman Dillon, Union Securi¬
-
Florida
Power
Corp.
was
ties & Co. and Harriman Ripley
& Co, (jointly): Lehman
Brothers and Blyth & Co. (jointly). Information Meeting
—Scheduled for Oct. 17 at 11:00 a.m. at Morgan Guaranty
Trust Co. Bids—Expected to be received on Oct. 20.
Ford
Motor
Credit
Co.
,
March 28 it was reported that this company is develop¬
ing plans for borrowing operations, which may include
the issuance of debt securities, and possibly occur later
this year. Office—Detroit, Mich.
Georgia Power Co.
(11/3)
plans regis¬
tration of $12,000,000 of 30-year first mortgage bonds
with
the
SEC.
Underwriter — To
be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.;
Morgan Stanley & Co.; Equitable Securities
Corp., and Eastman Dillon, Union Securities & Co
(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
uled for
Sept. 26. Bids—Expected to be received on
Nov. 3. Information Meeting—Scheduled for Oct. 31. -
Dec. 9
it
was
announced
that the company
that
plating the placing
Co.
York.
will
be
sold
bonds
gage
that the company is dis¬
approximately $20-$30,000,000 of debt
financing, probably to occur sometime this Fall. Proceeds
—For construction. Office — 250 Old
Country Road,
Mineola, New York. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; W. C. Langley & Co.; Smith, Barney & Co. and
First Boston Corp., all of New York City.
cussing the sale of
Long Island Trust
proval
in
the
the
of
of $60,000,000 and common
$120,000,000, subject to the ap¬
the amount
amount
New
of
York
Service
Public
Commission.
Proceeds—To retire short-term bank borrowings used to
finance construction. Underwriter—To be determined
by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co]; Bids—Expected to be
received on or about Wednesday, Sept. 28; and the stock
will be sold to the American Telephone & Telegraph Co.
on
about Oct. 1.
or
Northern States Power Co.
(Minn.)
(12/6)
May 11 it was reported that the company plans the is¬
suance and sale of $35,000,000 of 30-year first mortgage
bonds. Underwriter—To be determined by competitive
bidding.
Merrill
Probable bidders: Halsey, Stuart & Co., Inc.;
Lynch, Pierce, Fenner & Smith Inc., Kidder,
Peabody & Co. and White, Weld & Co. (jointly); The
Blyth & Co., Inc. (jointly); Leh¬
man Brothers and Riter &
Co. (jointly); Equitable Se¬
First Boston Corp. and
and Eastman Dillion, Union Securities &
(jointly). Bids—Expected to be received by Dec. 6.
Co.
Orange & Rockland Utilities, Inc.
April 18 it was stated that the company presently ex¬
pects that such part of its construction program through
1962 and the refunding of $6,442,000 series B bonds ma¬
the com¬
pany's 39,165 shares of its convertible cumulative pre¬
ferred stock, series E, 5% (par $100) will be financed
from the proceeds of sale in 1961, subject to market con¬
ditions, of $10,000,000 of its first mortgage
bonds, from
depreciation and retained earnings and, to the extent of
any remaining balance, from the proceeds of additional
short-term borrowings.
Pacific
Lighting Corp.
May 11 it was announced that this company,
sell
Pacific
Jan. 29 it
at
in order to
distribution systems, plans
$30,000,000 of first mortgage bonds and $20,000,preferred stock later this year.
additional
finance
Power
was
pipeline
&
Light Co.
announced that the company plans to issue
least $20,000,000
of securities, the date and form of
which will be announced at a later date.
Proceeds—To
$20,000,000 of unsecured promissory notes, to
on or prior to July 31,
1961. The notes will be
issued to finance part of the issuer's 1960-61 construc¬
to recommend
capital
stock
approved by the stockholders at
a special meeting held at 8 p.m. on June 14, 1960, the new
shares are being offered to stockholders on June 14, 1960,
on
the basis of one new share of stock for each eight
shares then held, with rights to expire at 3:30 p. m.
EDT on July 1.
Price—$23 per share. Proceeds—To
increase capital and surplus.
Office—82 Seventh Ave.,
Garden City, L. I., N. Y. Underwriters—A. M. Kidder
& Co., Inc. of New York City and Brown, Lisle & Mar¬
(par $5). Having been
shall of Providence, R.
I.
Louisville Gas & Electric Co.
Panhandle Eastern Pipe Line
to
total about
Co.
April 19 it was reported that this company might sell
about $65,000,000 of debentures, possibly in the third
quarter of this year. Underwriters — Merrill Lynch,
Pierce, Fenner & Smith Inc. and Kidder, Peabody & Co.,
Philadelphia Aquarium Co.
15, 1960, it was reported that the company plans
$2,000,000 of debentures and common stock
to finance an aquarium in Fairmont Park, Philadelphia,
which would be city-owned and company-operated un¬
June
to sell about
der
a
lease.
Underwriter—Stroud & Co., Inc. of Phila¬
delphia, Pa. and New York.
it Pik-Quik Inc.
29, 1960, it was reported that the company is con¬
templating the filing of 550,000 shares of common stock
sometime in July. Proceeds—For acquisitions in Florida.
June
Office—Minneapolis, Minn.
(10/18)
reported that this company plans the
$16,000,000 of first mortgage bonds.
issuance and sale of
expenditures, which are expected
$61,000,000. Office—Portland, Ore.
tion
both of New York.
Co.
May 26 the directors of this bank voted
the
issuance of
61,413 new shares of
was
in
stock
mature
Island Lighting Co.
it
issue
retire
13, 1960, it was reported
April 27
the
of
* New York Telephone Co. (9/28)
22, 1960, the board of directors of this company
authorized the issuance of an additional series of mort¬
000 of
retained earnings.
Long
66%
June
to
announced that in addition to the $15,000,000 of new capital expected to be provided by the July
bond-equity financing, $33,000,000 will come from later
sale of securities other than common stock and from
June
company is contem¬
registration of 17,000 shares of
in
About
Underwriter—Van Alstyne, Noel & Co., New York.
May 10 it was
..
stock.
company's account and the remaining 34% bal¬
will be sold for the account of a selling stockholder.
ance
a
Laclede Gas Co.
share.
March 10 it
Paper
secondary offering of com¬
mon
stock is presently being discussed. Proceeds—To
selling stockholders. Underwriter — Lehman Brothers,
400,000 common share offering through Merrill Lynch,
Pierce, Fenner & Smith Inc. and associates at a price of
per
Sutherland
May 11 it was reported
anticipates
Stores, Inc.
reported that the
was
turing in 1961 as is not financed by the sale of
company's sale
of $15,000,000 of first mortgage bonds in April of this
year will carry it through the better part of 1960.
The
company plans some bank borrowing before the end of
the year and expects to be in market again sometime in
1861, probably also for senior debt securities.
a
$59,125
1960 construction. Office—
June
competitive
Broadway, New York City.
& Co., Inc., 38 Broadway,
Dowd
F.
City.
it
common
198
—
R.
—
curities Corp.
that bonds
be sold in order to supplement money to be ob¬
from temporary bank loans, to acquire the $10,-
it Iowa-Illinois Gas & Electric Co.
23, 1960, it was announced that the
gas
12
Nov.
President Sutherland D.ows stated
.
estimates that in 1961 it will require
000,000 of
Balti¬
Electric Light & Power Co.
11
000,000 required to finance
Cedar Rapids, Iowa.
Light Co.
announced
Canton Co. of
and will
par,
Iowa
bidders:
Power &
was
with
It is expected
March
For bonds—Halsey, Stuart
& Co. Inc.;
White, Weld & Co., and Shields & Co.
(jointly); Morgan Stanley & Co.; The First Boston
Corp., and Harriman Ripley & Co., Inc.
bidding.
merger
derwriter—N one.
65-county area outside of Greater
Underwriter—To be determined by
Detroit.
and
its
nually for one to three years, $500,000
$35,000,000 maturing not earlier than 1990 for the best
price obtainable but not less favorable to the company
than a 5V4% basis. The mortgage bonds are expected in
the last quarter of the year, perhaps in October.
Pro¬
ceeds—To be used to finance the continuing expansion
electric
1960 in the 1959 Annual Re¬
mature at the rates of $1,000,000 an¬
annually for 1 our
to nine years, and $4,830,000 the 10th year after the
merger. Office—535 Fifth Avenue, New York City. Un¬
at
asked the Michigan Public Service
Commission for permission to issue and sell securities
with base value of $73,101,600. The company proposes to
issue and sell first mortgage bonds in the amount of
company's
1,
which will be the name of the surviving corpora¬
that the notes will be issued shortly
more,
Power Co.
the
with
connection
York
Nedick's
port of International Mining Corp. that the corporation
intends to issue $10,830,000 of 7% secured serial notes in
company
of
Mining Corp.
announced June
was
Place,
City, Room 238.
International
-
"
improvement
Office
for the
Halsey, Stuart & Co. Inc.; Lehman Broth¬
ers; Goldman, Sachs & Co., and The First Boston Corp.
(jointly); Eastman Dillon, Union Securities & Co.;
White, Weld & Co., and Shields & Co. (jointly); Blyth
"& Co., Inc.; Equitable Securities Corp.
Bids—Expected
to be received up to 11 a.m. New York Time on Sept. 27.
Information Meeting—Scheduled for Sept. 22 at 11:00
stock in the Fall.
another.
by competitive bid¬
able bidders:
It
and
to
Indianapolis Power & Light Co. (9/27)
was reported that the company will issue and
sell $12,000,000 of 30-year first mortgage bonds. Under¬
writer—To be determined by competitive bidding. Prob¬
Con Edison this year will spend
$225,000,000 on new construction compared with
$222,000,000 in 1959 and $189,000,000 in 1958.
For the
five years through 1964, Mr. Forbes estimated that the
utility would spend $1.2 billion for plant expansion. To
finance the five-year program he said the company will
have to issue some $800 million of securities of one kind
Consumers
plans
April 18 it
about
April 29 the
company
curities Corp.
New York
or
the
New
for
Edison Co.
stock.
that
Underwriter
ing woiild be contingent upon the ability of the company
to get its presently-outstanding 4% debentures converted
common
reported
was
Co., Inc., Lazard Freres & Co. and The First Boston
(jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Salomon Bros. & Hutzler and Eastman Dil¬
lon, Union Securities & Co. (jointly); Equitable Se¬
May 15 it was indicated by H. C. Forbes, Chairman, at
the annual meeting of stockholders, that common stock¬
into
Co.
Insurance
March
Corp.
of this year, sometime after the Novem¬
ber elections. Proceeds—For expansion purposes. Office
—215 N. Front St., Columbus 15, Ohio.
tures or common
$4,000,000. Proceeds — To finance river transportation
equipment presently on order and expected to be
ordered. Office—Cincinnati, Ohio.
&
the last quarter
holders may get rights to
Enterprises Inc.
8 it was stated in the company's annual report
that it contemplates the issuance on or before March 31,
1961 of a bond issue in an aggregate amount not to exceed
expansion.
13, 1960, it was reported that this utility plans the
sale of about 200,000 shares of common stock to raise
the
Midland
April
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Blyth
Columbus & Southern Ohio Electric Co.
with
plans to
company
$35,000,000 of
construction, costs of which
are currently
about $103,000,000 per year. Office—De¬
troit, Mich. Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.
etc. Underwriter—To be determined
(10/6)
June
$8-$9,000,000,
(8/23)
the
Proceeds—For
Mohawk
March
determined by competitive bidding.
Probable
bidders: Merrill Lynch, Pierce, Fenner &
Smith Inc.; Shields & Co.; R. W. Pressprich & Co. and
Carl M. Loeb, Rhoades & Co., all of New York City.
Bids—Expected to be received on Oct. 6.
Consolidated
Union Securities & Co. and Salomon
Office — Electric Building, Houston,
that
announced
was
to market in August for the sale of
16, 1960, it was announced that the company
expects to register its first public offering sometime
soon.
The offering will consist of 75,000 common shares.
Price—To be supplied by amendment.
Proceeds—For
be
approximately
it
23
come
$15,000,000 of 1st mortgage bonds due 1990
sometime in the fall. Proceeds—For capital expenditures,
to sell $30,000,000 of debentures. Proceeds —
struction. Office—120 E. 41st St., New York
:
Dillon,
Hutzler.
Idaho Power Co.
13, 1960, it was reported that the company
derwriter—To
&
issue and sell
Columbia Gas System, Inc.
June
4%%
Texas.
is to take has not as yet been
1961, although the form it
determined.
company's annual
mortgage bonds was headed by Lehman Brothers,
first
Union Gas Co.
Brooklyn
May
more
Ala.
Last August's offering of $25,000,000 of
under way.
White, Weld & Co. (jointly); Kidder,
Michigan Bell Telephone Co.
May
debentures.
anticipates approximately $35 million in
new
money will be required in 1960 to support the
year's construction program, and to repay outstanding
bank loans. Studies to determine the nature and timing
of the issuance of additional securities are presently
Atlantic Coast Line RR.
will be received
22
Co.
&
Peabody & Co. and Goldman, Sachs & Co. (jointly). Bids
—Expected to be received on Oct. 18.
report that it
Canada.
Bids
Lighting & Power Co.
it was announced in the
American Securities Corp. and Wood,
(jointly); Eastman Dillon, Union Se¬
Co.,
curities & Co. and
Houston
issues totaling $110,000,$65 million first mortgage bonds will be sold in
United States and the balance of the financing in
&
Struthers
bentures
offer in October four security
to
Loeb
Feb.
1 it was announced that the company is planning
June
de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man
Brothers and Blyth & Co., Inc. (jointly); Kuhn,
lulu, Hawaii.
(10/4)
be
Underwriter—To
construction.
Proceeds—For
Ltd.
1960, it was reported that this company is
to issue some type of additional securities,
22,
43
&
Underwriter—A. ,C. Allyn
Co., New York.
Continued
on page
44
.lf^n wnffh
i|((" tV'r
■:
y;
,f:
44
Financial Chronicle
The Commercial and
(2844)
Thursday/June 30, 1960
...
;t"
:
■IV
Continued from page 43
,»v
i
-\;.
;
Potomac Electric Power Co*
ll
f
was
<
»
stated in the company's annual report it
is anticipated that their 1960 construction program will
amount to $39 million and there will be further financing
$15 million of an as yet undetermined
type.
competitive bidding.
Co., Inc.; First Bos¬
ton Corp.; Dillon, Read & Co. and Johnston, Lemon
& Co.
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Lehman
Brothers and Eastman Dillon & Union Securities & Co.
and Stone & Webster Securities Corp. (jointly).
of
about
Probable bidders: Halsey, Stuart &
i
'.(1
I
%
;
i
Public Service Co. of New
:i,;?
.
!
stated in the company's annual report
borrowings will increase progressively
during 1960 until further permanent financing is under¬
taken later in the year.
The timing, type, and amount
of this financing has not been determined.
April 4 it
:!>
k.
v,
fli'i
h
was
.
short-term
that
v
Hampshire
Public Service Electric & Gas
(9/20)
Co.
May 18 directors of this company took preliminary steps
for the sale of $50,000,000 in first and refunding mort¬
gage bonds with a maturity of not more than 30 years.
Proceeds
To pay all or part of company's short-term
K i
—
indebtedness incurred for construction. Underwriter—To
will be received on July 27 by the company for,
purchase from it of $3,030,000 of railroad equipment
trust certificates.
Probable bidders: Halsey, Stuart &
Bids
the
Co.
;<4
'hk
•
|„-
u<
of
^
■■■
N*
•
|| r. r-
-
March
1
it
Gas
was
&
Electric
stated
in
Corp.
the company's annual report
to issue
$10,000,000 of new preferred stock. Underwriter
determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody
—To
be
&
Hi;
r->r.
v";u
Ijw!'..
ffi
I
fi;4,
I
!
M>t|
f
;'«'i
••tSi
iji
ilLfc
im'tf
•
f
Co., White Weld & Co. and Shields & Co. (jointly);
Kuhn, .Loeb & Co.; Salomon Bros. & Hutzler, Eastman
Dillon, Union Securities & Co., and Equitable Securities
Corp. (jointly); Blyth & Co., Inc.; The First Boston
Corp.
^ Rochester Telephone Co. (9/1)
June 24, 1960, this public utility petitioned the New
Service Commission for permission
$12,000,000 of series "E" first mortgage
bonds, which will mature in 33 years, on Sept. 1, 1993.
Proceeds—The proceeds of this sale would be used to
repay bank loans for construction and extension of facil¬
ities in service by the date of the proposed sale. Under¬
writer—To be determined by competitive bidding. Bids
—Expected to be received on Sept. 1, 1960.
York
Public
State
to Issue and sell
San
Diego Gas & Electric Co.
April 8 it was reported that $25,000,000 of bonds is
expected to be sold sometime ii[i the third quarter of
this year. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.; First Boston Corp., Eastman Dillon,
Union Securities & Co. and Merrill
II »
i
ner
113
fi'1
i
13.!
}•:
f.L
i
i
plan to issue $60,000,000 of first
Proceeds—To retire out¬
standing short-term borrowings and to finance the com¬
pany's construction program. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Blyth & Co.; First Boston Corp. and
Dean Witter & Co. (jointly). Bids—Expected to be re¬
ceived on Aug. 23.
and refunding mortgage bonds.
the
|fi
| i!
4J
j;
provide
Office—315 No. 12th Blvd., St. Louis, Mo. Un¬
be determined by competitive bidding.
& Co., Inc.; First Bos¬
ton Corp. and White, Weld & Co.
(jointly); Lehman
Brothers, Blyth & Co. (handling the books), Eastman
Dillon, Union Securities & Co. and Bear, Stearns & Co.
(jointly). Bids—Expected to be received on Oct. 19 up
to 11 a.m. EDT.
Information Meeting—Oct. 17 at 3:00
penses.
derwriters—To
the
for
Probable bidders: Halsey, Stuart
Southern Nevada Power Co.
June
&
Smith
Bros. & Hutzler
Scantlin
June
Lynch, Pierce, Fen¬
(jointly); Lehman Brothers and Salomon
(jointly).
$2,000,000 of
reported that the filing of about
common
stock is being discussed, with no
as
purchase
yet. Office—Los Angeles, Calif. Under¬
Schlitz & Co.
be made this
reported that
summer.
of bank loans. Un¬
competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co.
and First Boston Corp. (jointly); White, Weld & Co.;
Stone & Webster Securities Corp.
(jointly); Salomon
Bros. & Hutzler; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Bros.; Bear, Stearns & Co. Bids—Expected
to be received on Sept. 14. Information Meeting—Sched¬
uled for Sept. 12 at 2 Rector St., New York City.
derwriter—To
<
(7/21)
July 21 by the company for the
$6,000,000 of railroad equipment
Probable
bidders:
Halsey,
Stuart
&
Bell
directors
this
5
it
secondary offering might
Underwriters
—
Merrill
Lynch,
(9/13)
company
was
—
Probable
bidders: Halsey, Stuart & Co. Inc.; Salomon
Hutzler; White, Weld & Co.; Eastman Dillon,
Union Securities & Co.; Stone & Webster Securities
Corp. Bids—Expected to be received r«onrBept. m13» In¬
Bros.
bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co. Bids—Expected to be received on or
about Aug. 2 up to 11:00 a.m. EDT.
^
Probable
&
formation Meeting—Scheduled for Sept.
N. Y.
8 at 11:00 a.m.
time, at The Chase Manhattan Bank, 43 Exchange
Place, New York City, Room 238.
w
^
Tennessee Valley Authority
Jan.
20
announced
Waldbaum, Inc.
that, pursuant to August, 1959, au¬
May 11 it
thorization from Congress to have $750,000,000 of rev¬
bonds outstanding at
enue
public
offering,
sometime
about
in
expected
the Fall.
any one
to
be
May 13 it
$50,000,000 of additional
offered in the
bonds will
Winter
be
generating capacity. Power Financ¬
will be offered
and may
of
&
Freres
Co.
and
&
Co.,
Salomon
Eastman
Bros.
&
will issue and sell approximately
common
stock.
rights basis to existing
on a
This stock
stockholders
not be underwritten by one or more
may
brokers.
Future
plans
also
$2,000,000 of bonds in the second
Office—132 East New
Smith, Barney & Co. (jointly); First
Lazard
or
securities
Inc., First National City Bank of New York, Equitable
Corp.,
Telephone Co.
30,000 additional shares of its
Brothers. Underwriter—To be determined by com¬
Securities
Blvd., Brook¬
announced that this company, during the
was
first quarter of 1961,
Proceeds—To finance
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Securities Corp. and
Park
May 10 it
Spring of 1961. The type of bond issued
new
obtainable. Office—2300 Linden
was
lyn, New York.
announced that
was
revenue
will depend on market conditions.
construction of
tion
$50,000,000, for
about
reported that public financing is being
was
contemplated by this supermarket chain. No confirma¬
time, it plans its first
include the sale
of
quarter
1961.
England Ave., Winter Park, Fla.
Yardney Electric Corp.
Dillon,
Hutzler
May 9 it
was
reported that sometime in July this com¬
(jointly); Chase Manhattan Bank and Morgan Guaranty
a
by
reported that approximately $25,000,000
first mortgage bonds Will be offered for sale/ Under¬
writers
To be determined by competitive bidding.
Telephone Co.
of
determined
be
Virginia Electric & Power Co.
Feb.
(8/2)
recommended a
$100,000,000 debenture issue, subject to approval by
regulatory authorities. Proceeds—To finance an expan¬
sion and improvement program over the next five years.
Underwriter—To be determined by competitive bidding.
28
(9/14)
was
construction purposes and repayment
on
of
Southwestern
March
Boston
was
it
Co.
reported that $17 million of debt securities
and $10 million of common stock is expected to be sold
sometime in the third quarter of this year. Proceeds—For
June 1 it
Co. Inc.; Salomon Bros. & Hutzler.
Union
March 11 it
from
certificates.
trust
■'
■
Bids will be received
writer—Carl M. Loeb, Rhoades & Co. and Paine, Webber,
(Jos.)
:
it Southern Pacific Co.
man
was
time indication
Smith Inc.
at the Bankers Trust Co.
Utah Power & Light
ing Officer: G. O. Wessenauer. Financial Advisor: Leh¬
Electronics Co.
13, 1960, it
p.m.
$5,100,000 under this agreement by
October, at which time it expects to sell about $5,500,000
of bonds and $3,000,000 of an undetermined type of stock,
with preferred being considered, possibly with rights to
purchase common shares at specified prices. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc. Eastman Dillon, Union
Securities & Co. and Kidder, Peabody & Co. (jointly);
White, Weld & Co.; Merrill Lynch, Pierce, Fenner &
Jackson & Curtis (jointly).
i,
Vice-President, that the company plans an
of approximately $50,000,000 of 30-year first
mortgage bonds. Proceeds—To meet construction ex¬
offering
payment of
certain outstanding notes through the issuance of first
mortgage bonds and other debt securities.
The timing
of the issue or issues was not stated in the report. Office
—Birmingham, Ala.
expects to
1960, it was announced by Dudley Sanford,
16,
Executive
stated in the company's annual report that
was
company
(10/19)
EEectric Co.
Union
Southern Natural Gas Co.
April 4 it
its stockholders
March
It will borrow about
(jointly). Bids—Ex¬
pected to be received on Sept. 20 up to 11 a.m., in New¬
ark, N. J. Information Meeting—Scheduled for Sept. 15
at 11:00 a.m. at the Chase Manhattan Bank, 43 Exchange
Place, New York City, Room 238.
Rochester
I: <nv
(8/23)
rectors had approved a
Loeb & Co., and Lehman Brothers
that the company has filed an application with the New
York State Public Service Commission for the right
l.i\ V
Edison Co.
16, 1960, it was announced that the company di¬
June
15, 1960, it was reported that in order to meet $8,300,000 of property expenditures scheduled for 1960, the
company has arranged a $6,000,000 revolving bank credit.
'
!
w I:
Inc.; Salomon Bros. & Hutzler.
Southern California
plans, to offer
$100,000,000 of subordinated income
debentures with detachable common stock purchase war¬
rants, and Hughes Tool Co. (parent) will purchase not
only its pro-rata portion ($78,000,000) but also enough of
any debentures not taken up by others to provide TWA
with at least $100,000,000.
Proceeds — Together with
$190,000,000
proposed
private
placement which
is
presently being worked on by this company's bankers,
will be used for expansion of the company's jet fleet.
Underwriters—Dillon, Read & Co., Inc., Lazard Freres
& Co., and Lehman Brothers, all of New York.
to
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
be determined by
Hi
April 8 it was anqounced that the; cpmpany
v
^ Seaboard Air Line RR. (7/27)
Underwriter—To be determined by
1 ;f'
Trans World Airlines, Inc.
Pierce, Fenner & Smith Inc. and Harriman Ripley & Co.
Inc., both of New York City.
.
March 21 it
w
*
pany expects to
Thist Co. of N. Y.
common
(jointly); and Blyth & Co. and J. C.
file
an
yet undetermined amount of
as
stock. Office—40
Leonard St., New York City.
Underwriter—To be named.
Bradford & Co. (jointly).
j* ti'i
! ' '< I
U'lft
fii
i
■I f u •!
•*.o;
With Milburn, Cochran
Puerto Rican Bond Sale Completed
5««|
(Special to The Financial Chronicle)
T. O. Davis
Opens
CASPER, Wyo.—Thomas O. Davis,
WICHITA, Kans.—Dennis Cowell
Jr.
has
ment business
is conducting his
own invest¬
from offices, at 3229
Cochran'& Company, Inc., Monte Vista Drive under the firm
110 East First Street, members of name of T. O. Davis & Company.
the Midwest Stock Exchange. He
was
formerly with Ranson &
Stuart P. Kastner Assoc.
Company, Inc. and Zahner and
Formed on Pacific Coast
Company.
become
associated
with
Mil-
biirn,
I*!
I
I^
I
'vfM
* 'I I
■
LOS
if w
Form Hallmark Investment
(Special to The Financial Chronicle)
OAKLAND, Calif.—Hallmark In¬
H'li
vestment
$?■
at
jif
?'«i
[k
Fourteenth
Street.
formed
Westwood
in
a
are,
M.
with
offices
Boulevard
securities
to
1037
at
engage
Officers
business.
Stuart. P., Kastne.r, .President j
B.
Gardner-, ■ Vice-President!
and Norman. H. Kastner, Treas-;
Treasurer, and Milton J. urer. Stuart P. Kastner was for A
Surkin, Vice-President and Secy. merly with Hayden, Stone & Co.
are
Karl Magidson, Presi¬
dent and
Graham Elliott & Son
»'
IV*
I
East
7425
Officers
The Commonwealth of Puerto Rico completed t
i-f
Ml
itf
le
sale of $17,000,000 bonds, June 15, to
a
bank¬
headed by the Chase Manhattan Ba ik, Morgan Guaranty Trust Co. and Ira Haupt
an interest cost basis of
3.89437 %.
Shown, left to right: Francis Bowen, Ex¬
ecutive Vice-President, of the Government Devslopment Bank for Puerto Rico; Frank Smeal,
Vice-President of the Morgan Guaranty Trus
Co.; Wm. G. Carrington, Jr., Partner of Ira
Haupt & Co., Inc.; John De| Milhau, Vice-dPre ident of the Chase Manhattan Bank; Jose R.
Noguera, Secretary of the Treasury of Puer'o Rico, and Bernabe Martir, Director of the
ing
!,f
is1 conducting
been
j
*<*. >
J'
Company
>.a" seturities. business from* offices
ANGELES, Calif.—Stuart P.
&
Associates, Inc. has
Kastner
&
group
Co., Inc. at
Bureau of the Treasury.
LOS
Elliott
&
Son
Calif.—Graham BROOKLYN, N. Y.—R & S In¬
has been formed vesting Co. has been formed with
with
offices
way,
to engage in
iness.
R & S Investing Opens
ANGELES,
at 756
a
South
Broad¬
securities bus¬
Edward Gra¬
offices
at
3416
Avenue
S
to
gage in a securities business.
en¬
Part¬
Officers are
ners are Stanley Ringel, Seymour
Elliott, President; Jerrold P. Ringel, and Lester Segarnick. All
Elliott, Vice-President; and A. B. were formerly with. Continental
Elliott, Secretary-Treasurer*
Planning Company.
ham
191
Volume
Number 5964
.
.
The Commercial and Financial Chronicle
.
Indications of Current
(2845)
The following statistical
latest week
Business Activity
week
Latest
iron and
american
Week
steel institute:
Indicated Steel operations (per cent capacity)
Equivalent to—
Steel ingots and castings
month available.
month ended
or
Previous
42
(net tons)
July
§1,560,000
Previous
Year
Month
Ago
BANK
*1,739,000
1,726,000
2,215,000
output
(bbls.)
6,839,560
6,771,560
6,864,010
7,016,825
June 17
118,034,000
7,836,000
7,935,000
28,939,000
27,262,000
28,584,000
June 17
(bbls.)
2,659,000
2,605,000
2,218,000
12,443.000
12,097,000
5,7149,000
6,188,000
Stocks at refineries, bulk terminals, in transit, In pipe lines—
Finished and unfinished gasoline (bbls.) at
June 17
207,935,000
214,128,000
25,788,000
22,922,000
101,123,000
87,972,000
June 17
39,879,000
40,394,000
649,830
648,463
OF
AMERICAN
warehouse
credits
Dollar
38,875,000
on
54,439,000
Revenue
ENGINEERING
CIVIL
CONSTRUCTION
—
532,606
523,235
541,238
U.
590,283
STATES—DUN
of
Month
of
(U.
COAL OUTPUT
coal
Bituminous
S. BUREAU
and lignite
$389,100,000
$491,900,000
370,900,000
173,200,000
250,700,000
261,300,000
212,300,000
215,900,000
241,200,000
June 23
Federal
161,300,000
180,400,000
175,900,000
201,800,000
Cereal
and
100,000,000
31,900,000
40,000,000
39,400,000
Meats,
poultry
DEPARTMENT
STORE SALES
SYSTEM—1947-49
items
8,895,000
*8,800,000
8,425,000
9,359,000
375,000
355,000
290,000
423,000
Other
AVERAGE
Food
June 18
148
144
138
143
June 25
100
=
14,213,000
14/053,000
13,572,000
13,749,000
Finished
steel
Pig iron
(per gross
Scrap steel
—
DUN
METAL
Export
Lead
(St.
tZinc
Louis)
M.
J.
6.196c
$66.41
$66.41
$31.00
$31.50
$32.50
$38.17
June 22
32.600c
32.600c
32.600c
June 22
31.225c
30.250c
30.450c
27.600c
—
June 22
12.000c
12.000c
12.000c
12.000c
112.9
129.9
125.0
123.6
106.1
103.4
_
home
....
_
104.7
118.5
118.0
114.8
131.3
128.7
141.4
..
139.3
124.1
118.2
137.2
138.7
104.7
103.8
137.0
136.9
133.8
108.8
107.0
109.5
108.9
108.0
99.6
99.6
98.9
139.8
_____
141.2
124.4
136.3
_______
and
oil—
fuel
139.7
132.4
93.0
91.9
_
..
and
boys'
and
girls'
_
146.1
_
....
.....
_
_
care
care
Reading
and
_
11.800c
11.800c
11.800c
13.500c
13.500c
13.500c
11.500c
13.000c
13.000c
11.000c
.June 22
26.000c
26.000c
26.000c
24.700c
101.875c
101.375c
99.625c
103.875c
84.90
83.46
Active
spindle hours
Active
spindle hrs,,for spindles in place May
11.800c
daily
f
averages:
86.36
June 28
June 28
85.07
85.20
84.68
85.98
June 28
.
89.51
89.64
89.09
89.23
June 28
87.59
87.59
June 28
84.81
84.94
84.17
78.90
79.01
78.90
June 28
83.03
83.03
82.52
85.20
June 28
85.46
84.46
85.07
85.07
June 28
86.91
86.91
86.65
87.99
Group
Group
130.0
121.1
120.9
117.7
131.7
128.2
Spinning spindles in place on May 30—
19,964,000
17,589,000
19,957,000
17,599,000
8,989,000
20,356,000
active
449.5
439.1
recreation
services..
goods
DEPARTMENT
(DEPT. OF COMMERCE);
_—
omitted) May SOT*" 8/964,000
SALES. SECOND
DISTRICT
RESERVE
ERAL
May 30
on
(000's
STORE
RESERVE
_
and
SPINNING
COTTON
81.66
Group
149.6
131.9
85.98
.June 28
Baa
192.6
155.0
132.7
..
87.59
87.18
199.4
_
Other
Spinning spindles
86.40
134.4
155.5
.
Personal
145.3
134.9
132.9
Public
Medical
146.5
134.4
199.4
....
______
_
13.000c
„
Aaa
111.5
131.4
1953—100)
(Jan.
_
June 22
prices
Utilities
116.4
.June 22
.June 22
at
Average corporate
Industrials
__
Footwear
31.050c
—
at
U'.'S. Government Bonds
Public
115.3
_
_
home...
operation
Women's
Private
(primary pig. 99.5%) atStraits tin (New York) at
Railroad
107.2
_
Transportation
at
bond
134.1
109.3
electricity
fuels
Men's
6.196c
$66.41
6.196c
QUOTATIONS):
Aluminum
,
£j?196c
$66.41
June 21
ton)
(East St. Louis)
moody's
_
_
from
Household
256
299
June 21
at
(delivered)
Zinc
353
296
June 21
refinery at
at
refinery
York)
(New
and
Solid
copper—
Domestic
Lead
135.5
104.7
ton)
&
135.8
PRICES:
gross
(E.
PRICES
Electrolytic
115.3
___
A
(per lb.)
(per
117.6
114.7
106.9
INDUSTRIAL)
June 23
COMPOSITE
AGE
123.9
117.7
92.9
AND
BRADSTREET. INC
IRON
125.7
119.5
_
fish
and
at
_
Gas
(in 000 kwh.)
(COMMERCIAL
FAILURES
16,721
116.7
_
products
..
Rent
Electric output
15,446
_
—
_
vegetables
food
Housing
INSTITUTE:
ELECTRIC
EDISON
_
bakery
and
away
•.
_
products
June 18
V
_
.
home
at
Fruits
RESERVE
15,530
126.2
—
_
_
Food
June 18
INDEX—FEDERAL
_
>
Dairy
(tons)
THE
IN
BRADSTREET,
Food
OF MINES):
Pennsylvania anthracite (tons)
255,904,000
April:
$583,200,000
223,800,000
June 23
municipal
&
May
June 23
and
State
265,506,000
INDEX—1947-1949=1 ()l£—
PRICE
$485,100,000
All
(NEW)
INCORPORATIONS
UNITED
June 23
construction
286,415,000
.
June 23
Public
14,818,000
28,599,000
102,892,000
$1,263,464,000 $1,336,228,000 $1,038,248,000
CONSUMER
construction
S.
127,893,000
and shipped between
goods stored
INC.—Month
NEWS-RECORD:
Total
97,293,000
_
countries
BUSINESS
724,278
ENGINEERING
350,432,000
11,559,000
„
Total
I
'
636,808
$285,603,000
460.595,000
13,094,000
51,451,000
;
exchange
foreign
RAILROADS:
$373,382,000
473,795,000
t-\
Domestic
111,930,000
freight loaded (number of cars)
June 18
freight received from connections (no. of cars)—June 18
$351,759,000
31:
—
i
26,600,000
103,045,000
May
BANK
„
shipments
200,624,000
26,883,000
June 17
,
of
$216,003,000
86,950,000
YORK—As
—
Based
204,372,000
June 17
(bbls.) at
fuel oil (bbls.) at
Residual fuel oil (bbls.) at
Kerosene
NEW
$226,007,000
OUT¬
RESERVE
Domestic
6,310,000
Revenue
OF
$232,953,000
ACCEPTANCES
Imports
12,731,000
6,077,000
ASSOCIATION
GOVERNORS
omitted)_______
DOLLAR
Exports
1,864,000
12,531,000
June 17
Distillate
(000's
May
OF
8,000,000
29,482,000
June 17
(bbls.)
Residual fuel oil output
OF
STANDING—FEDERAL
June 17
Distillate fuel oil output
DEBITS—BOARD
of
of
(bbls.)
(bbls.).
output
Kerosene
(bbls.
June 17
to stills—daily average
runs
of that date:
Latest
78.2
BANKERS'
each)
gallons
Gasoline
are as
THE FEDERAL RESERVE SYSTEM—Month
institute:
oil and condensate output—dally average
Crude
of quotations,
cases
Month
60.6
american petroleum
Crude
in
or,
either for the
are
Ago
Ago
•61.0
Dates shown in first column
that date,
on
production and other figures for the
cover
"Year
Month
Week
§54.8
July
or
tabulations
45
448.2
17,591,000
8,781,000
FED¬
FEDERAL
NEW YORK—1947-49
BANK OF
Average=100—Month of May:
125
127
unadjusted
daily), unadjusted
(average daily), ^seasonally adjusted—
Sales
(average
Sales
.
139
124
137
126
131
(average monthly),
Sales
144
130
$89.83
$90.32
moody's bond yield daily averages:
:
U. S.
Government Bonds—
3.92
Average corporate
.
June 28
.
June 28
.
June 28
"
4.07
4.14
4.77
4.81
4.71
4.44
.June 28
Aaa
3.91
4.78
.June 28
4.44
4.48
4.47
.
ESTIMATE—U.
AVERAGE
LABOR—Month
Railroad
Public
>
Group
Utilities
Industrials
Group
4.59
4.59
4.62
4.79
4.85
4.71
All
5.27
5.28
5.05
Durable
4.94
4.94
4.98
4 77
4.75
4.75
4.78
4.78
■
June 28
index
4.64
4.64
4.66
June 28
Group
moody's commodity
378.2
376.8
378.2
.
4.56
385.5
Production
June 18
activity..
Unfilled orders
(tons)
at end of
period
328,895
296,404
295,404
317,358
327,206
325,053
327,830
June 18
June 18
(tons)
Percentage of
278,086
June 18
(tons)
93
96
443,523
482,631
441,637
495,750
98
1949
.June 24
average=100
transactions
account
for
of
110.17
110.23
110.53
110.29
3
2,440,670
2,480,310
2,209,910
2,213,060
sales
June
3
Other
sales
—June
3
377,580
445,740
Initiated
Total
Other
389,850
3
73,600
53,600
65,600
42,200
3
334,110
364,150
255,840
458,220
3
407,710
417,750
321,440
500,420
June
3
3
787,240
823,821
673,030
654,933
84,700
135,210
120,830
107,180
June
3
543,674
752,697
575,955
843,416
June
on
3
3
the floor—
sales
transactions
for account of members—
June
sales
-
887,907
950,596
696,785
3,162,260
670,430
3,736,061
678,860
3
3,651,760
3
632,170
3,257,843
.
526,960
June
sales
:
—
3
2,753,094
3,140,327
2,636,895
3,200,416
June
3
3,423,524
3,819,187
3,259,065
3,727,376
lot
dealers
exchange
—
and
specialists
on
sales
Number
of
by
dealers
(customers'
shares
y. stock
commission
1,752,716
1,812,704
June
$87,892,034
$92,972,593
1,744,393
$83,966,710
1,842,689
$106,482,884
1,528,259
short sales
June
8,038
10,090
Customers'
other
June
1,644,838
1,702,805
1,437,063
June
$79,959,726
$83,897,433
$68,802,358
$83,459,923
June
459,670
514,540
368,700
400,520
June
459,670
514~,540
368,700
400,520
June
534,960
607,840
646,040
670,280
June
sales
value
Round-lot sales by dealers—
Number of shares—Total sales
sales
Round-lot purchases by dealers— Number of shares,
1,652,876
1,712,895
12,170
stock
on the
sales
n.
y.
stock
of
members
Short
sales
June
748,930
826,340
806,430
636,980
Other
sales
June
14.513,250
15,262,180
15,672,170
13,693,380
15,144,600
labor
—
June
(1947-49
=
—
16,498,510
14,499,810
All
of
119.5
119.6
119.7
119.6
.June 21
88.5
*89.2
89.9
90.7
June 21
107.7
*107.6
107.1
—
commodities other than farm
one-half
1,
cent
figure,
I960
a
as
against Jan. 1,
pound.
$399.4
COMMERCE)—Month
OF
industries
Service
Other
Farm
Transfer
Less
.*—■
.
payments
9.9
34.5
*11.1
12.0
—_
13.7
13.6
13.0
24.9
22.0
28.0
28.2
26.4
9.8
income
—
9.8
383.5
———
——
nonagricultural
12.0
12.2
12.2
25.2
-
contribution .for social
employees'
45.4
48.3
10.5
35.6
11.6
f
insurance
37.1
10.5
income
interest
Personal
67.5
*39.5
48.2
-
of persons.
income
86.7
*70.9
35.8
.
Rental
.".
——v—.—
professional
and
109.8
*88.6
39.7
income
labor
Business
259.8
♦112.7
89.0
—
$381.3
*271.5
113,3
70.9
——
♦$397.8
272.1
industries
Distributing
FINANCING
ESTATE
S.
U.
OF
BOARD—Month
IN
HOME
—
April
of
♦382.4
'
8.3
365.3
NONFARM
BANK
omitted):
LOAN
(000's
$983,220
107,683
$983,016
$1,148,193
119,371
114,793
382,066
376,567
Mutual savings banks
106,033
104,387
124,498
Individuals
335,439
354,843
333,073
452,014
467,377
502,096
$2,366,455
$2,405,561
$2,775,681
$61,150,611
$42,245,675
22,252,971
$78,975,304
$64,498,646
4,850,779.
$98,412,635
$93,778,200
31,090,191
$59,647,867
30,986,754
$48,313,080
$28,661,113
$62,235,892
Savings and loan associations
Insurance companies
Banks and trust companies—.^
—-
.
—
Miscellaneous
lending
institutions
Total
INCOME
SELECTED
ITEMS OF U.
of
railway
r
S. CLASS 1
March:
.
operating income—
income
Total
23,534,826
±—-
income
Miscellaneous
from
deductions
~
—
—
available
fixed
553,028
Commerce Commission)—
RYS. (Interstate
.
—
-
and foods——
Income
fixed
for
$84,605,437
5,282,166
income
$79,403,271
charges.
charges
June 21
96.8
.97.1
.96.8
103.9
June 21
128.3
128.3
128.4
127.9
Net
...
.
after
fixed
charges
19,437,331
4,634,435
31,542,308
4,106,298
income
common
preferred
of
___
52,037,909
51,950,256
17,039,318
50,273,507
34,303,989
23,818,173
29,863,529
45,664,700
7,818,639
824,005
2.55
1.92
2.97
;
appropriations:
On
On
Ratio
taxes—
$57,964,624
1,033,131
Depreciation (way & structure & equipment)
Federal
4,271,268
$24,618,667
31,348,797
income
4,042,446
$44,206,782
deductions
Other
Dividend
Jan.
109
STATES
personal income.,
Wage and salary receipts, total
—
Commodity producing industries
—.—
Manufacturing only _——
i——
108.0
foods
fflncludes 1,080,000 barrels of foreign crude runs. §Based on new annual capacity of 148,570,970 tons
1959 basis of 147,638,670 tons.
tNumber of orders not reported since introduction of
Month]v Investment, Plan,
fPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
of
109
(in billions):
May
Total
.June 21
products
•Revised
as
109
110
15,781,580
u. s. dept. of
Meats
All
2.00
100):
commodities
Processed
IN THE UNITED
(DEPARTMENT
Income
Commodity Group—
Farm
2.40
2.06
109
—
—
(shares):
Total sales
wholesale prices, new series
2.44
RESERVE
FEDERAL
THE
OF
Total
Other
sales—
round-lot
$2.23
110
—
—
adjusted1®—;
PERSONAL INCOME
Net
exchange and round-lot stock transactions
Total
ERNORS
Month
total round-lot
-
goods
39.7
$2.28
2.07
—
goods
Nondurable
41.1
*38.6
2.44
.
40.5
*39.9
$2.28
goods
39.4
40.2
39.3
.
.
_
1,540,429
Customers'
for account
Durable
AREAS
June
u
1,454,606
17,543
Other
goods
Hourly earnings—
All manufacturing
REAL
purchases)—t
Dollar value
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Dollar
79.40
,
n.
exchange
securities
'
Odd-lot
98.64
♦79.52
39.8
/
manufacturing
Durable
Total
stock transactions for odd-lot account of odd-
'
All
Dividends
June
sales
Other
628,374
,
purchases
Short
*97.36
81.35
Hours—
Government
June
sales
sales
Total
279,320
June
round-lot
Total
431,930
423,850
purchases
Other
2,276,360
June
sales
Total
Total
1,898,780
2,240,840
June
sales
Short
1,795,100
2,513,530
floor—
.
transactions initiated
Total
490,050
2,023,480
June
purchases
Short sales
Other
off the
512,130
1,875,310
2,387,440
Short
transactions
$90.74
—
98.09
Unadjusted
June
purchases
Total
*
—
goods
goods
Seasonally
bers, except odd-lot dealers and specialists
of specialists in stocks in which registered—
Other
^
SYSTEM—1947-49—1W>.—Month of May:
mem¬
Transactions
Total
OF
DEPT.
INDUSTRIAL PRODUCTION—BOARD OF GOV¬
oil, paint and drug reporter price index—
round-lot
manufacturing
Nondurable
national paperboard association:
Orders received
S.
May:
Nondurable
June 28
"I
4,80
June 28
IIIIIIII—IIIIII
of
Weekly earnings—
4.59
5.28
A*
AND HOURS—WEEKLY
FACTORY EARNINGS
stock
il
——
stock—
income
to
fixed
charges
:«-ft ',
•;j(tPf
*'
xy\)i
<>,
! jV1'
'
1
V-'
46
they
t
The Problems of Inflation
h,
u
;
If
'N
V
Mf
•V.
'
<|V)j
l
111
JLm
'
,VM
f11
i
existing
money-
undertake
would
to
along in lower prices the
productivity
increases
achieved
within
the
time
period of the
contract and within the limits re¬
pass
•i:.!
m
H 'i
J"}
iuj
i--
I'll1'1
Its
of Jus¬
in its responsibility
price competi¬
job would
be
to
assure
monopolistic
arrangements
do not prevent the passing along
of price decreases initiated by the
initial treaty.
•Mil
/sn
;ij
ill
j;'Ii
mm
fl ^
H n.
:
M!
Mr;
'
c
,
'H
•
tin.
rn f
J:
unequal in its incidence, but
tive
nevertheless
real.
But
often that
be said too
it
cannot
this incen¬
tive will not work unless labor is
confident
the
employment
kept
high—higher
that
will
level
be
than it has been in recent years.
I
lis
initiate
the
a
government
would
series of moves—in
co¬
operation with industry and labor
—designed to encourage an in¬
m
front.
talk.
o;i
\%t)
m
ni:
in
productivity
specific
The
demand
becomes
of
pe¬
culiar
as
As
an
Does this
ment
is
here.
reason
some
In
scale
both
mean
must
power
to
,
But Crucial
Role
:•
Government
that the govern¬
radically
increase
intervene
in
the
its
pro¬
duction process?
I
think
role
not.
The
drive
the
in
government's
for
higher pro¬
confined, I
shouldJ be
ductivity
believe, to these four
First,
the
dramatize
to
measures.
President
the
.
nation
■
should
the
pro¬
ductivity problem; its importance
providing
a
noninflationary
in
the
story
of
economic growth in the past, it is
over a
wide
I
But it is clear that the pos¬
as
whole
a
acceleration
new
of
productivity in¬
crease,
passed
along
in
part
through price decreases.
torically,
New Environment
and
observe
what
they
|Wr
a
-tiff-
^not only provide the nation with
new
environment which would
wholesome
internal
of
technology
in
the
relatively early stage of their in¬
troduction:
modern
cotton tex¬
the
railroads,
steel,
'elec¬
people
new
a
^emerging from
diffusing to our
level and pattern
are
of
consumption based on the auto¬
mobile, electric-powered gadgets,
While
that
sion proceeded, we
erful
and
benefits
dustries
directly
with
connected
of
wide
a
machine
pow¬
productivity
of in¬
range
indirectly
and
the
new
sheet
consumption:
diffu¬
collected
general
in
of
process
so
on.
world,
we
these
from
and
the
sectors
rate
fact
of
in
affecting the
growth
derived
they
directly
that
indirectly stimulated produc¬
*
eco¬
tivity
in
productivity benefits to the
over the next decade;
economy,
the
but
in
in
both
scale and quality of research and
in
development
fields,
tional result
should
We
research
in
relatively
a
not yield
may
few
na¬
would like to
we
the
see.
us
beware, particularly
development, of
and
statistics: the general les-
global
sonHwresearch and development
the is t4tf«/ results are proportionate
steel,
which
civilian
the
benefits only in indirect
economy
and uncertain ways.
The
Objectives of
In
productivity high on the national
agenda. It might be useful, for
example, for task forces of private
and public authorities jointly and
systematically to examine the pro¬
ductivity
potentials
be
had, but
come
about
national
effort.
including
—
improved methods of industrial
organization — in various major
of More
Second, to
not
American
development
order
of
older
glamorous fields where
tion
or
decline has
in, but where
proportions of
and
research
talent
those
to
interest to
common
increased
are
sources
the
first
and
less
decelera¬
long since set
very
the
substantial
nation's re¬
still
steel, automobiles,
to the service
jective
would
and
industries. The
be
to
ob¬
the
correct
tendency for the new, rapidly ex¬
panding
fields
to
absorb
dis¬
a
business
expansion—the
talent.
Third,
examine
short, we cannot look to the
leading sectors in the next wave
lead¬
we
also
the
extent to which
trepreneurship in the various
en-
sec¬
or is not effectively bring¬
ing to bear the potentials which
tors is
already exist for increased pro¬
yield automatically the ductivity; and we might then con¬
increases
in productivity sider what incentive might be
to
with
I
leading growth
say, the Ameri¬
position differs radically from
of
Western
Europe, Japan
and the Soviet Union, where high
can
that
income
elasticity
demand is
largely with
manufacturing sectors, where pro¬
still associated
of
more
ductivity gains are still easily to
be
had.
Some such
distinction in
tan
transport, where
area
seek
and
cheaper
a
way
we
must
of getting in
out of the suburbSv A. limited
extension
of
the
methodsnow
in military research
used
and de¬
velopment might be wholesome;
for
private
industry
can
not
handle research and development
above
costs
certain
a
level.
We
civilian jet aircraft would not
—if
the
government had not met
proportion
high
a
and
search
of their re¬
development cost.
Third, the Department of Com¬
merce
should collect and publish
detailed
more
productivity
data
specific industries than are
now
available; and organize ses¬
on
sions
with
industry and labor to
examine these data and their im¬
created
to bring
average
levels
productivity closer to bestproved standards.
of
In
these enterprises, the
dent's
Science
Advisory
mittee
and
the
Presi¬
teams
leads
still
to
the
nation
a
in
world
which, for so
long, has been able to count on
high productivity as an almost
automatic byproduct of its evolu¬
tion. But we must bear in mind
productivity
that
high
and
productivity
is
.not
enough; it is the pace of increase
that will help
determine how easy
difficult it will be to meet our
domestic and international chal¬
or
should also bear
of growth
which the United States has at¬
tained has altered the old tight
connection between areas of high
lenges. And
in mind
we
that
the stage
elasticity of demand and
technological momentum.
History appears to have decreed
that, in order to remain a front
runner, we shall have to continue
to pioneer—in this case to pioneer
in
engineering productivity in¬
creases along a broad
front. And
in facing this challenge we should
not complain; for a front runner's
status is never automatically sus¬
of
might play important
roles of leadership.
Let me state bluntly what lies
these
proposals:
high
tained.
It
must
be
in
my
constantly
renewed.
Com¬
Department
Commerce
behind
productivity
which
income
might systematically
ing sectors in effective demand—
rapid
might
economy
whether it might
see
in the
be
allocate
Effective
In
government
the
organize—and if necessary
help
finance—certain
expensive
research and development efforts,
designed to break major techno¬
logical bottlenecks in our civilian
economy.
I have in mind here
particularly the fields of housing
construction
and
intrametropoli-
three objectives in mind.
with
class
Cause
Second,
help
plications for the national interest.
Fourth, the government might
envisage
certain
alterations
in
First, to see what can be done tax
schedules
designed
to en¬
to maintain our productivity ad¬
courage
increased research and
vantage in certain sectors directly
development in industry and the
related to our, export markets. A*
introduction of new productivity
part of the job is increased atten¬ measures.
tion to productivity.
It may seem odd to commend
sectors of the
proportionate percentage of first-
Foreign Competition
providing for the
and for
adequate public services.
protection
exist—at least at the present time
view it is necessary,
to place the issue of
my
also
community's
our
National
a
Productivity Program
therefore,
while
ards
should be clear, for example, that
railroads,
to
purposeful
a
from
interest
consumed; for
example, housing construction,
unlikely to
without
of
concentration
surely, great in¬
productivity
in
the
industries
are
The
certainly yield gen¬
pattern
are,
sectors. Here, as
over-all
tronics—will
nation's productivity
associated
other sectors: they set
nomic setting—which would rec¬ up new direct demands such as
oncile full employment and rapid the railway demand for coal, iron,
Growth with price stability—but and
engineering products;
and
more
There
creases
they
sectors—
quality
rather
than
scale.
industry,
petro¬ to
plastics,
electronics,' Moreover, a great deal of contem¬
As we look around the porary research and development
is directed to fields of military
can see that Western
the
on
service
These
atomic energy and elec¬
as
tool
chemicals,
electronics, and so on. The power
of
well
eral
We
process
tricity, chemicals, the automobile,
Now stand back from these six
measures
been
forms
tiles,
The
have, his¬
connected with
sectors
—
aeronautics.
history.
continue to grow.
to
leading
trial
as
insights derived from
level.
economic historian.
examines
one
These
a
of
and
importance to the United
States at the present stage of our
fects
some
work
measures
aim to achieve. They aim to produce
jfk
?#!■
If.
bear
sibility of making some such pro¬
gram viable hinges in part on an
m
UM
'
,,
and
possible to identify for each econ¬
omy, over each substantial period
of time, the sectors whose dis¬
would tentatively suggest to in¬
crease productivity I shall
rapid
growth
shortly proportionately
outline, in the second half of my made it possible for the economy
crease
iw
productivity.
Europe and Japan, as well as Rus¬
sia and Eastern Europe, are now
fiscal
and
monetary defined. There is no need to hold
policy, to bring the level of un¬ rigidly over a period of time to a enjoying or may shortly enjoy the
employment back to a tolerable standard of fixed money wages productivity effects which stem
from
pressing
consumption
on
minimum; that is, to a situation and falling prices. The six-point
into the new high ranges which
approximating the frictional mini¬ program might yield something
the United States first explored.
mum
of, say two million unem¬ like that result; but it might be
that
the
necessary
negotiating
ployed.
The Changing Pattern of
Fifth, against the background flexibility would, in fact, result
American Consumption
in
something closer to a stable
of these moves, the government
As nearly as we can make out,
level with
slowly rising
would undertake to introduce new price
Americans, as they have become
farm legislation designed to afford money wages. What this six-point
richer, have tended to allocate
equity to the farm population on program is designed to do is to
their increase in income to larger
alter sharply the wage-price pat¬
a
basis other than the
present
tern in the industries which have families and increased outlays on
price supports. There are various
set the pace and to lift from the services, rather than to manufac¬
ways in which this might be done.
the heavy
burden of tured products. The expansion in
1 would lean to a system of direct economy
built-in
inflation
which
arises population and the increased de¬
Subsidy to those whom we judge
for services
will
from wage contracts where money mand
help to
deserve
it, combined with ar¬
maintain full employment in the
rangements which would provide wages are permitted systemati¬
United States. Despite the pace of
transitional support for farmers cally to rise far beyond the na¬
automation there is no shortage
to either improve their produc¬ tional increase in productivity and
demand in
the result is corrected by inflation. of over-all effective
tivity to a point where subsidy is
prospect unless the Government
no
longer required or to find al¬
Productivity: An Historical
creates it by a dour and persistent
ternative
economic
employment.
Perspective
deflationary policy. On the other
It is
at
least possible that the
Now let us consider the prob¬ hand, a lateral expansion of our
farming community would be pre¬
lem of productivity;
for an ac¬ facilities to accommodate a larger
pared to accept some such re¬
celerated increase in productivity, population and increased outlays
vision in the present legislation if
on
education, urban reconstruc¬
it were not confronted with the passed along substantially through
the price system, is key to the tion, travel, health, and so forth
paradox of inflation in the indus¬
success
of this approach to our are not likely to induce new tech¬
trial sector of the economy ac¬
nological revolutions with power¬
;
companied by falling farm prices problem.
ful and widespread secondary ef¬
Here I should like to bring to
and incomes.
Sixth,
If.
•IP'
effective avenue
only
bring about
via
sary,
w
] 'J. J
caution
Limited
The
etc.
,
the
As I have suggested, the over¬
the government would
take such steps as may be neces¬ all objective
should be flexibly
14
tion.
gitimate incentive for labor to
play an active part in the reduc¬
tion of featherbedding—an incen¬
is
confidence
points.
is
Fourth,
'ill!,
(for example, in housing) also
in improved methods of organiza¬
of
full
that
'»}v
ployment; but it will not, in itself,
a strong stimulus to
there
believe
I
for
technology,
but
increase in labor pro¬
ductivity, it would provide a le¬
the
unless
ticular attention to
U}-.:
em¬
I
answer
the average
accepted
tion.
'
and
and
emphasize that the
lies not merely in new
into
—
process;
the
fi
ji-lfe
will certainly in¬
effective demand
measures
margin of unemployment; and, by
relating the real wage level to
clear
make
tice would be instructed to survey
'
tivity-increasing
the
production
six-
for. the economy,
Third, the Department
j
in housing
crease
or
job of introducing new
technology — and other produc¬
would
1950.
bad
a
mediocre
framework here outlined,
such a treaty is unlikely to
pattern
new
14!:
T; L,
:
1920
say,
con¬
and
under the Sherman Act, with par¬
i
period,
do
and firms
industries
not
American
effective
the economy,
,
to
the
in
excelled
history also tells
Now economic
produc¬
our
tivity in fields where we uniquely
Many
achieving a rise in real wages;
it would provide a method for
controlling
inflation
by
means
other than maintaining a chronic
felt about all six
[11!::
i,f!
*
part at
a
for
be
ill1!'"
i
yielding
ket process was
least of the increase in real wages,
tion
for
?
match
now
can
labor.
to
This distinction between the ef¬
fect of leading sectors on produc¬
tivity and their consequences for
point
■
Demand
of pay¬
balance
competitors
our
featherbedding is
apparent effectiveness, indus¬ basis for the economy; its impor¬
research
and
development tance in dealing with balance of
has been historically concentrated
payments pressure; and its im¬
in a relatively few sectors, linked
portance in providing us with a
in their very origins to modern
growth rate which would permit
science
electricity, chemicals, us to enjoy higher living stand¬
would
H''
American
the
of
ments:
increasingly
sion
•
the fact that the mar¬
For labor,
government, in encouraging such
an
initial treaty designed to set
a
1
competition.
troduction of new technology. The
/
•••?»•
;
fined
the
provide a national framework of jected to a major technological weigh the consequences * of our
and
wage
policy which revolution with strong secondary * high income elasticity of demand
would ease the problem of foreign effects on productivity. An expan¬ for babies and services?
quired to provide reasonable via lower prices, would ease the
profits and adequate ploughback burden on labor leaders which
capital for expansion and the in- arises when formal wage negotia¬
■
'
of
avenues
new
view
embarrassment
for
sponsible
industries price
the
contracts,
concerned
vH
■
of
continuation
wage
V ' {Ml
j
Thursday, June 30, 1960
historical phase is now mainly re¬
cific advantages for both business us that each cyclical expansion
public surveillance of labor ne¬
Will Modern Technology
and labor.
was
dominated
by a group of
gotiations in terms of this policy,
Automatically Solve the
For business this environment
leadingsectors, whose rapid*in-,
and for the possibility of public
Problem?
arbitration without, however, in¬ would remove the pressure for crease provided the effective de¬
In facing this situation we are
excessive money wage increases mand which brought the economy
troducing compulsory arbitration.
not, however, ' without resource.
Second, there must be an initial wnich arises from the assumption to full employment. But the lead- j
We all know that we live in a
•wage-price treaty covering a of labor leaders that costs of liv¬ ing sectors in a boom were not
leading growth * world where science and tech¬
limited time period in certain of ing will steadily rise; it would necessarily also
the key industries. Perhaps, in the provide a setting—of diminished sectors. For example, some booms* nology are expanding at an un¬
first
instance,
automobiles and unemployment and of an even- have been based mainly on a precedented rate; and that re¬
search and development in indus¬
steel would suffice to set the new handed national productivity poli¬ rapid expansion in housing rather
than on the rapid diffusion of new
try is expanding at something like
pattern in motion. The initial deal cy in which pressure could be
should be the mutual assurance legitimately exerted to diminish branches of technology. Housing, 10% per annum. Can we not count
featherbedding;
it would unfortunately, has not been sub¬ on these developments to out¬
that
if
labor
would accept the labor
v;)i
\
through
economy
Leading Sectors in Effective
which would also have quite spe¬
Continued from page 13
I?
i
call
wholly
effects,
U. S. A.
And Productivity in
,'f M
,
we
economic development.
(»j
i
up,
external
opened
also
what
♦%
Hi
1
.
■*.1
t
,
Chronicle
The Commercial and Financial
(2846)
if'.
Can
Now
I
Democracy Do
a
am
the Job?
final word.
aware
that
,
any
such
proposals—for dealing consciously
and purposefully with our domes-
191
Volume
a'sericus
of
Number 5964
and productivity re-
Stock Offered
possible economic gain? Will we
be encumbering ourselves and reducing
our
essential freedoms?
These are questions I have asked
myself.
My conclusion is the following,
First,
so
far as inflation is
am
concerned, I am not proposing
new interferences in an otherwise
free, competitive, capitalist situa¬
tion. Price and wage policy are
now determined by anything but
market mechanisms;
normal
(2847)
Are Named by
in political damage to our
society which would outweigh the
^i'i
The Commercial and Financial Chronicle
.
Amer.-Int. Alum.
suit
i
.
Shreve & Coyle
question: will the effort
inflation
.
-rj
-j
^
Lubetkin, Regan
In New Quarters
Franklin Corp.
Stock Offered
,
JlISYClGII, utORG
7
Public offering of 400,000 shares The New York Stock Exchange
of American-International Alumi- firm of Lubetkin, Regan & KenWickliffe Shreve has been made num Corporation common stock nedy has moved from 30 Pine
senior partner and Alfred J. Coyle at a price of $5 per share is being Street to new and larger quarters
managing partner of Hayden, made today (June 30) by Hardy at 44 Wall St.,
Stone & Co., 25 Broad Street, & Co. and Filor, Bullard & Smyth New York
and associates.
■
Net Proceeds fr°m the sale of
the common shares will be used
'
by
the
with
in
company
connection
establishment
the
of
a
operations.
and
company's
balance
The
will
proceeds
net effect of what I propose
would widen, and narrow, the role
of the free market process in our
to; the
capital and
working
The
-
c o m-
the
Co.
&
Inc., is today (June
1,000,000 shares of
offering
stock of the Franklin
common
Corp. at $10 per share. The shares
are being offered as a speculation.
proceeds from
be
the offering
used
defined
cerns
n^u f
business
small
as
under
the
Small
Investment
v;
American
n
Act.
intends
*
thf
q *
30)
by the company to
provide long-term capital, tech¬
nical assistance and advisory and
counselling services to companies
,
i'
*
underwriting group headed by
Blair
will
nounced.
ofrthe
added
be
n
a
An
Net
City, Lloyd E.
Lubetkin, sen*0r Partner,
has
new
plant in San Jose, Calit, and for
expansion and improvement of its
the
specialize
ments
Y"^
to
in
con¬
Business
corporation
invest¬
in its
its
which
engaged
are
and
nesses
The
companies
judgment
purposes" general C0rp0rate Change, now
purposes.
occupies
a
industries
of
in busi¬
growth
,
economy.
American-International
far as the govern¬
ment's role in the inflation prob¬
lem is concerned, again what I
Second,
so
in a process where
government is now inactive.
The
government—and pubte opinion—have been key factors in the settlement of most of
the
great labor disputes which
of
44
produced in specified lengths and
Wickliffe Shreve
Alfred J. Coyle
F.
Noyes,
fices
has
a
leadership
of
role
essential
limited,
new,
The
the
on
Lloyd E. Lubetkin
floor
Wall,
play; but I see no reason why
that role—and particularly assistto
tion of America.
•
.
,
,
Mr. Coyle joined Hayden, Stone
& Co., as a general partner in
development.
The
Franklin
Corporation, in¬
corporated in New York on July
28, 1959, is a registered closed-end
Charles
and non-diversified
management
negotiated
investment
company
under
the
according to
which
Inc.,
members 0f the New York Stock sizes. The company at present has the five-year lease. It is Lubetkin,
Exchange, according to an an- in operation in its two Miami, Regan & Kennedy's first reloca¬
o°uncement by the partners of Fla. plants five extrusion presses, tion in 10 years,
rhe 68-year-old investment bank- together with substantial other
ing and brokerage firm.
essential equipment, giving the
have set the wage-pattern of the
Mr. Shreve has been a general company a capacity to produce
economy
in recent years. What partner in Hayden, Stone & Co. about 4,000,000 pounds of extruI am proposing
is that govern- since 1946. Prior to that time he sions per month. It is the comment intervention be made—when had been with Lehman Brothers pany's intention to consolidate all
it is
necessary—in the light of for more than 10 years, serving as of its Miami operations at Plant 1
a
clear, ' even-handed
national syndicate manager during his last in which its executive offices are
policy, understood by the public, six years with the firm. He is a also
located, and subsequently
backed by Congressional action..
past Governor of the Association leases its Plant 2.
Third
with respect to produc- °* Stock Exchange Firms and of
At the proposed San Jose, Cal.
tivity, i do, indeed, believe the J!16 Investment Bankers Associa- plant, the company will produce
government
and further
suite of of-
eleventh
intervention
the
Alumi-
Corporation is primarily a
producer of aluminum extrusions
(or extruded shapes) which are
num
governmental
not
is
propose
but
47
investment
old
31-year
banking and brokerage firm operates a branch office in Kingston,
N, Y.
The company was founded in
1929 by Mr. Lubetkin. Its floor
partner is John Regan. The com-
pany's other active partner is Mrs.
Margaret E. Kennedy, well known
as holder of most of the "firsts"
for women in the investment field
^nd nationally recognized as
its own billet aluminum, which it -^ress to Mhin Streit" Ambas~
purchases at present from a suplu lvldm
plier. Substantially all of the
-_
company's sales in the fiscal year
Van Arkel VJpens
ended Feb. 27, 1960 consisted of jan £ Van Arkel is engaging in
Investment
Act
of
licensee
Federal
Business
1940
under
Investment
and
is
of
Act
a
Small
the
1958.
Main office of The Franklin Cor¬
poration will be located at 3 West
57th St., N. Y. C.
Officers of the
Arthur
corporation are:
T.
Roth, Chairman of the
Board;
Herman E. Goodman,
President; Paul E. Prosswimmer,
Vice-President,
and
George
H.
Becht, Treasurer.
The capital stock of the corpo¬
consists of one class, com¬
ration
mon stock, having a
par value of
$1. All shares have equal voting
rights and will participate equally
in the
payment of dividends.
Au¬
thorized capitalization consists of
From 1952 until 1954, he
ance
in expensive civil research was an independent member of
2,000,000 shares of the $1
par
and development .and the encour- the New York Stock Exchange,
aluminum extrusions, which are a securities business from offices value common stock, and upon
agement of research and develop- He was with Hemphill, Noyes & used by fabricators of various at 251 West 20th Street, N. Y. C. completion of the current financ¬
ment through tax policy—should Co., from 1947 through 1952, prior items used in building construeing
there
will
be
outstanding
*
do anything* but strengthen-ithe
1,071,000 shares of the stock.
to which he served in the armed tion.
;
Widenor Onens
private sector of the economy.
forces.
For the fiscal year ended Feb.
•
rv luenor vjpens
IT* m general I wnnld L
JLrnl T would say
•
27, 1960, the company had net GLEN HEAD, N. Y.—Malcolm D.
And
With W. E. Hutton Co.
galeg Qf
771,966 and net in- Widenor is conducting a securities
this: modern American democracy "Dw.
\Tr»
UT7 come of $326,384. Upon comple- business from offices at 19 Greeley
(Special to The Financial Chronicle)
is based on a mixture of privatel XVU-IIllIlGl IN dlllGll Uj
tion of the current financing, out- Square.
1954.
CINCINNATI, Ohio —Ralph P.
activity; corporate respon-
market
sibility (both industry and labor);
r
company
terest'and government leadership"
Fred C. Rummel has been named
chairman of the executive comteresting continental community, mittee of Royal McBee Corpowhich works in ways we have ration, Allan A. Ryan, Chairman of
We
a®complicated
are
not
and
—
the
set
—
of
rate
the
continue
in his
as
is clearly
interest that we pio¬
If
minds
is
objectives
the
in
reason
world
resilient
and
mature
and
hearts
our
those
011
no
our
set
we
to
which
Our
■
capitalist
and
is
svstem
fragile*
it
but
prove
itself
lems.
all
are
we
is
our
of
there
why
a
must
bv solving
front
wide
such
are
tbh«e-akifnlnbreiXdthThevrewnin
unresolved, they will
perform-
.
continue to weaken our
at
tt
home
is
ance
time
firmly
and
abroad
we
■
them
looked
the eye and
v
..
named
was
*
ment bankers.
ment bankers.
a
pAR„
_
Sunshine
1.4. has'been
formed
with 0ffjces at 93.25 sixty-fourth
nrnssharrl
T,,lj!ln
dent;
Roberta
President.
and
/
Prp,;.
Kaplan,'
Fannie
the spirit of
talist
our
*An
-
.
address
by Dr. Rostow at the
Business School, .Harvard Uni¬
versity, June 11, 1960.
•
Harvard
(Special to The Financial Chronicle)
share, has been
business
share
August 31, 1960.
the 434 %
been declared
of
10,
the
1960.
McCASKEY,
JR.
Secretary
CLEVITE
CORPORATION
CLEVELAND
of record August
is
paying
a
10, OHIO
dividend of 30
cents a common
June 27, 1960.
share
Treasurer
utive
on
This is the
company's 152nd
;
J. H. Mackenzie,
Secretary
A.
at
record
June
on
of
share-
share
payable October 1,
31,1960.
Montreal, June 13,1960
per
Preferred Stock has
1960 to holders
to
I960,
30,
the
declared pay¬
A dividend of $1.06 M
on
on
Stock
payable
value $13.50
1960 to holders
September 3
of record
order of the Board.
T. F. TURNER.
consec¬
quarterly dividend.
Philadelphia, June 28, 1960.
=
Vice-
GOODALL
J. 1j. DOnds Opens
BEVERLY HILLS,
Bonds,
Jr. has
Calif.—John B.
opened
RUBBER
a
COMPANY
offices at
9418 Wilshire Boulevard to engage
COMMON DIVIDEND
NEWS
AT
CLEVITE:
securities business.
declared a quarterly dividend of
Domestic and foreign
Stock outstanding payable
stockholders of record at the close of
markets for replacement
The Board of Directors has
W. R. Jones
1214c per share on all Common
Opens
Calif. — Malcolm A.
(Special to The Financial Chronicle)
Rogers has rejoined First Califor¬
BAKERSFIELD, Calif. — William
nia Company, .Incorporated, 1330
R. Jones is engaging in a securi¬
Broadway.
Mr. Rogers has re5centlv been with Birr & Co., Inc. ties business from offices at 814
per
able
*
August 15, 1960 to
OAKLAND,
Co.
Common Stock, par
^".^^holders
on August 1 1960 to shareholders
of record at 3.30 p.m. on June
Rejoins First California
Walston &
June
close
declared
was
Common
Corporation,
sloane
(Special to The Financial Chronicle)
.
in
;and
the
the
m a
democratic capi-
institutions.
share
per
on
Company
A dividend of 60c per
..
Directors
Board of
the
S.
I960,
'
Rnart
of
owners
At a meeting of the Board o
Directors held today a dividend
seventy-five cents per share on
the Ordinary Capital Stock was
declared in respect of the year
J'
Securities
meeting
Improvement
m
DIVIDEND NOTICE
* ~<•
".
Sunshine Securities
REGO
a
Allegheny Ludlum Steel Corporation held
today,
May
20,
1960,
a
dividend of fifty cents (50c)
■—0O0—
corporation since its organization
in 1954.
; r
l
'
•
of
Dividend Notice
&
NOTICES
Pennsylvania
Pittsburgh.
The United Gas
CANADIAN PACIFIC
Smith
&
Fenner
Allegheny Ludlum Steel Corporation
NOTICES
At
RAILWAY COMPANY
&
Pierce,
Inc.
DIVIDEND NOTICES
spirit Secretary-Treasurer,
ot
confidence, mutual trust, and
imagination, fashioned answers in
f
_
*
jr\
in
DIVIDEND
Pa., investPa., invest¬
Fred c. Rummel
Bache
Lynch,
—
Co.,
Philadelphia,
A mams
new
problems; and a solution to them
is urgent. They will not go away
rnntfn,
Board,
Mr. Rummel
director of The
endlessly McBee Company in 1946 and has
new probbeen a director of the merged
problems of inflation
increasing
productivity
of
over
the
man
system
The
and
Chairman
Bank Building.
DIVIDEND
Cohn.
with
First National
He was formerly
Co.
and Merrill
W. E. Hutton & Co.,
Co.
said.
attached.
not
—
—
of M. M. Free¬
society
strong
Y.
position management of Samuel T.
Rummel
Mr.
while strengthening the
democratic
N.
heimer & Co. has opened a
chairman
Mr. Ryan
cannot achieve the result we want
and need,
Draper, Sears & Co., 104 Purchase
Street.
He
was
formerly with
Davis & Davis and Goodbody &
Oppenbranch
office in the Hotel Lido under the
BEACH,
Herron has become affiliated
Mass.—Richard H. with
Fitton has become connected with
vertibie preferred stock,
Oppenheimer Branch
LIDO
Sears
(Special to The Financial Chronicle)
FALL RIVER,
'
commit tee,
application of modern
science
and
technology... over a
wider front than in the past.
;
Joins Draper,
s!fres of common stock and 5,000
of the finance
in the
neer
also
will
He
growth. It
common
Board, has
announced.
precisely in textbooks. It is
clearly the common interest to
solve
the
inflation
problem by
some
means
other than damping
down
the
of
in-
and
perhaps cannot
the
will consist of 1,130,000
capitalization
standing
Xv0y3;I iVICJDGG
Chester Avenue.
business
-
June 23, 1960
parts are providing an
August 1,1960.
increasing
<
^
H. G. DUSCH
-
Vice President & Secretary
ness
for
source
of busi¬
Clevite's auto¬
motive units.
•H'jjv)' \
f..'
•'V
♦
5
48
The Commercial and Financial Chronicle
(2848)
.
.
.
Thursday, June 30, 1960
An interesting political period
/
is
ahead for our country,
of whom the nom¬
inees are for both parties.
just
regardless
of
As
BEHIND-THE-SCENES INTERPRETATIONS
two
:
FflOM THE NATION'S CAPITAL
first
WASHINGTON, D. C.—The po¬
atmosphere is thick in
.Washington. Presidential poli¬
litical
tics
is
>
•
tions.
currently overshadowing
sagging world
;our
Although politics is the
subject here at the
is
It
rarity
no
pres¬
Democratic
Certainly,
it
proper
for him
Washing-
crawled
of
out
on
in
limb
a
1948
with
off
them
forecast
B.
Johnson
the
should
to
re¬
the "Chronicle'sown views.]
Mr.
think
COMING
that
keep tightlipped.
office, flatly
-
EVENTS
Butler, who has had five
and one-half turbulant years
Thanks to
in
A. Wilfred May
that Senator
says
IN INVESTMENT FIELD
Kennedy cannot be stopped, if
gets at least two-thirds of
he
:
the
substantial majority of the New
Butler
:
York and New
Now,
with
of
tional
from
support
Democratic
the
Na-
Committee, they
crawling out
It
are
the limb again in advance of the big political
show which will get kicked off '
on
with committee
hearings in July
right after July 4.
Seemingly
the
that
between
*■•
Senator
John
F.
It
will
be
does
not
that
nominated
in
out
take
that
the
get
V
.J
in
due
the
on
mently
Nixon
first
■
they
Should
,
*
the
on
chance
by
the
.
f
from
state to get the nomination since
Civil
War
and
be
to
ever
elected.
;
the Los
90
profits (possibly thousands of dollars in
days) is explained in this clear, simple
they
book
-
facts
certain to be
looks
one
Kennedy
a
successful
traders
and
Vice
you
shows
sell
can
how
they
options
it
do
on
your
own
them
to
make
help
book
you
And
on
costs
make
you
and mail
gains
instead
can
a
your
you
stocks, etc.
only $3.96.
this coupon
it
Free.
Fill
for
their
Seat
to
as
a
Please
send
me
Herbert
Filer's
■
,
»
Under-
I
standing Put and Call Options for 10 days'
free examination.
I
If not
«
,
convinced that it
can
pay
for itself
I
■
|
j
I* tplus the over, I may return it and$3.00 |
'.many times
pay !
nothing.
Otherwise
I
will
pay
you
postage charge within 10 days
I
as
payment in ft
1
Breckinridge,
he
.
I
Name........
|
J
Address
|
| jmy.iT..:,Zone....State
f~j Save postage. Check here if
you prefer to
|
j
f enclose check of money order for $3.00. Then !
I ^ we pay postage. 8ame m<meybaek guarantee. I
was
yviiw""
elected
in
great
another
was
W.
Alben
in
r
the
'
big
an
Presby¬
;
Nixon
.
Committee
when
Barkley,
he
might be
said
that
a
address"
the
at
;
in
Club, Mr. Butlepr, himself
and a lawyer from
Bend,
said
report
a
Ind.,
there
that
young,
showed
vey
in
was
private
truth
no
private
a
that
most
sur¬
the
of
delegates
The
Vice-President
Is
that
have
served
Ken¬
been
younger ,on.
than
48.
They
velt,
and
Mr.
our
country
taking
Nixon, who would be
were
"a Catholic Ameri¬
46,
he
>
vention
he
the
as
Angeles
the
attending
in
the
con-
of
to
Governors
at
the
.
Nixon's
f.
.
man
Hotel, Hartford, Conn.
Sept. 12-13, 1960 (Denver, Colo.)
Rocky Mountain Group of Invest¬
Bankers
ment
Association
ing.
'
Sept.
15-16, 1960
~
Right-Hand-Man
Municipal Bond Dealers Group of
Cincinnati
annual
outing — cock¬
Sept. 15 at Queen
tails and dinner
Kenwood
field
day
Sept.
16
at
Country Club.
Sept. 21-23, 1960
(Santa
Barbara, Calif.)
Board,
ment
of
Governors
Bankers
of
Invest¬
Association
fall
meeting.
Sept. 30, 1960
Bond
(Philadelphia, Pa.)
of Philadelphia
Club
Annual
Field
Day at the
Philmont Country Club,
Philmont,
Pa.
Oct. 10-13, 1960
National
(Pasadena, Calif.)
Association
of
Bank
Women 38th annual convention at
the Huntington-Sheraton Hotel.
;
Our New
y
Carl Marks
:,
*
o a
d
;
FOREIGN
SECURITIES
& Co. Inc.
3
i
"
York telephone number is
CAnal (-3840
SPECIALISTS
....
STREET
•
NEW YORK 5, N. Y.
e r
Klein, who is
special assistant-to Vice Presi¬
says
(Cincinnati,
Ohio)
Official Films
named Herbert G.
Nixon,
meet¬
...
Southeastern Pub. Serv.
,
the
with Mr.t
i d d 1 e-of-the-r
of
Hilton
-
Botany Industries
20 BROAD
m
Board
Indian Head Mills
ever
of
'
Exchange
the
Statler
TRADING MARKETS
Truman in 1948.
f
of
Attention Brokers and Dealerst
from
Kentuckian,
run
Stock
meeting
dele¬
gates.
36, "when •■*"
named
now
Firms
political
was
dent
Sept. 12-13, 1960
John
he
A
he
Republican
as
Traders Asso¬
Convention.
35th
belief
would
Chicago
(Sun Valley,
Security
Annual
Association
The
delegates, than would
convention
In¬
meeting at the Sheraton-
Sept. 11-14, 1960
Idaho)
were
Democratic
of
Association
Portland.
faith.
Catholic
Catholics
more
attending
Theodore Roose¬
Ulysses S. Grant,
Grover Cleveland, 47.
42;
as
expressed
that
have
office
Los
the
can"
47.
Presidents
Three of the 34
to
of
However,
Youthful Past Presidents
annual
Group
Bankers
National
Catholic
South
vestment
City Club;
In his "farewell
Washington
members
>
story tellers of
history. He was 71 when"
'
a
by the Democrats.
to
campaigns in
year between these two
vigorous campaigners.
his
1856
one
a
coun-
bloc
life,
interesting
many a
cratic
Press
,
the
of
been
never
try. However, some astute poli¬
/
.
Washington'
one -
has
might develop in
favor of the Republicans should
Mr. Kennedy be turned down
sweepstakes
Kennedy,"
politicos forecast i
There
Catholic
wife
I
between
and '
most
-
r
Demo¬
nomination, Catholicism
is expected to figure in the elec¬
"correct
States
is
the
ticians in Washington say
; Chairman
Butler of the Demov
com¬
a
and
Jolla
La
develop
in
and
(Portland, Oreg.)
Northwest
ciation
Kennedy is
Kennedy, gets
tion.
•v
outing
Country
summer
Clair Inn
Sept. 9-11, 1960
National
Quaker, while
a
Catholic. If
a
:l Catholic bloc vote in this
vari¬
a
has
He
daughters,
the
Should
lot
modern
the Californian
-expects to - carry the Mid- -«■
West
-w-.w:
two
is
Uinited
the
the-
was
Kentucky. The oldest
elected
I
I
in
reserve.
*
the
on
third term,
a
cratic
1940,
newspapers
Presi¬
Vice
to this office
""""
•
CROWN Publishers, Dept. A-7, •
I .419 Park Avenue South, New York 16,
in
capably
;
latter
Religious Issue
Mr.
of
/
;
California
served
assignments. He
race
tick¬
Senator
elected
or
House
V j
the
and
was
also
opposed to the
Roosevelt Administration's for¬
Mr.
when
*
the
for
Mr. Nixon is
friend
1946
run
when
36 -Vice Presidents in the United
States. The youngest man ever
In-
today.
To your favorite bookseller,
for
terian church.
Ambassador
now
Cabell
I
has
elder
it:
Republican
Lodge,
to
Nations, who' lost
.
since
Roosevelt
eign policy.
editor
as
St.
Investment
(Detroit, Mich.)
Pacific
Roosevelt, but he broke with
The
graduate of the University
and
Incidentally there have been
It can
fortune.
examine
of
ran
Naval
dential candidate for the Repub¬
licans, along with several others.
of
profits, how to'use options to
protect profits
This
capital
.
whom the Dem¬
looms
nedy,
income, where and how
buy and sell puts and calls, how to use
on
job
personal
a
Nixon
mander
-' !
Cabot
Henry
to increase
the
nominate
As
Senate
short-term
•»-
et.
you too can make maximum profits
minimum investment.
It shows also
stock
»•
ocrats
United
how
to
about
his
California and Illinois
Johnson
*
Aug. 12, I960
the
sum¬
Club, St. Clair, Mich.
of
leave
a
in New
men
decided to
Mr.
about
on
Copley" chain of
all kinds of specu¬
are
will depend
pro¬
Senator
Presidential picture. A
and
book
This
on
There
lation
the subject.
fessionals
purchase
"buy"
and
"sell"
options (call and put) because they know
these options
can
make big profits for
them
and
also
can
protect
unrealized
"paper" profits on the stocks they own.
how
wealthy, too.
f
by HERBERT FILER
;
millionaire.
is
Options
been
Southern
ous
just
at
from
has
he
fairly
seems
is
"
ticket. He is youthful and he is
of
and
more
San Diego, Calif., Union.
Mr.
of
are^
the Democratic
on
the
A
are,
father,
versity sponsored by
Bankers Association.
lin
administration.
Klein
Representatives.
major role in
hard
anyway
Senator
POT mil CALL
Thousands
the
in
Nixon
3
Angeles convention; and-
cold
about
on
inquiries
Mr.
of
are
The
j
His
resident
England,
held the post of Ambassador to
Britain, under President Frank¬
identity.
Should
Mr.
Nixon be elected, he might very
well become a substantial fig¬
He
.
lining up behind Sen¬
Kennedy The liberal forces
generally are rallying behind
Senator Kennedy -
•ftst'-
would
Mr.
Kennedy
a
he
at
of
ator
going to have
inaugurated.
42,
now
before
week
at Northwestern Uni¬
wealthiest
absence
the- first "
The powerful labor unions
...
with a put or call option, risk limited
to the cost of the option (maybe a few
hundred dollars), you can make unlimited
How
authority
be
43
(Evanston,
Investment
Incidentally, because Mr.
Klein is going to figure more
and more in the news, certain¬
ly-between now and the elec¬
'
Confederate
a
Labor Backing
Stock Market Transactions
#1
receptions
Kennedy,
be
course
of
Basis Club annual
ure
Senator
get elected he would be the first
nominee
Texan
Limited Risk-Unlimited Profit
the
would
tre¬
out in the
Klein's
Johnson get the nomination and
might *
Kennedy
both
New Englander.
Senator
the
said
gotten
1960
Joseph P. Kennedy, one of the
more
by
the
5,
tion, there have been
Presi¬
if
Klein
has
„
but it
courage to say
some
denied
Texan and
10-Aug.
111.)
Mid-West.
unfounded
time,
Mr.
President
mendous
in
~*\ -V'-v- v'f,
these
course,
the
on
would
rumors,
cour¬
Mr.
the nomination
up
Of
Chicago,
Senator
wrap
much
take
predict
ballot
Vice
Washington
"trade"
election.
8
Kennedy,
a
friend—er—PETE I"
Banking—4
keep cropping up, will be vehe¬
does
to
age
be
old
my
mer
-
"
~
Johnson
nominee.
Kennedy
:
will
July
isn't
picture
nomination, and Senator
Kennedy the Vice-Presidential
Vice-President
of Massachusetts.
in
rumors
there
it
Fundamentals
dential
Richard M. Nixon of California
and
are
Senator
if
sup¬
the political
over
for
"Well
get
the convention whereby Senator
dieting that the big Presidential
sweepstakes race is going to be
run
will
brilliant
the
appears
there
and more of
are
flatly pre-
he
overwhelming delegate
port of these three states.
Despite
a
Jersey delegates.
inevitable
seems
the
that
more
"observers"
Michigan delegation, and
horizon
Butler's Forecasts
|
intended
is
a
straight talking Chairman Paul
I
column
^
the
"7
Senator
and
nomination,
Butler
that year.
v/M
nom-
get
pretation from the nation's Capital
and may or may not coincide with :i
and
Stuart Symington, both hopeful
Thomas E. Dewey
vanquish PresidentHarry S. Truman. They had "
sawed
to
to
supporters of Senator Lyn¬
don
Governor
limb
well
fails
flect the "behind the scene" inter-:
'
"
Presidential
he
-
smashing triumph for his party,
would
the
,V
is
,
great majority thought ;
a
[This
but he is going to whip
daylights out of the Repub¬
"
if
nomination.
tion,
the
but
when
-
coun¬
only going to win the nomina¬
observers,
and
that
in¬
cludes
professional
politiciansand people in the journalistic >
field, to make wrong political predictions. For instance, they :
•
high party
cils, thinks Mr. Kennedy is not
-ton
;
anything
has
men,
a
Solomons, has had fairly smooth
political sailing and very likely
is in a
position to name the
10 th Floor
inee,
in
licans.
for
CONVENTION
but endeared himself to various
;'■•V-':;..'
■
who
Democrats,
-
.
autumn."
BROKERS'
the
of
young
strong
a
Navy
man in
World War II, has had
rough sailing politically.
Mr.
Kennedy, who
commanded
a
torpedo
patrol
boat
in
the
STOCK
some
:
Butler
between
race
Kennedy, is
possibility. Mr. Nixon,
prognostica¬
'■•
a
Nixon and
Democrats
para-
ent, our foreign policy looms as
a
major subject in both big '■>'
party
conventions,
plus the *
'Presidential campaigns in the v
V\
ballot, but
such
Chairman
prestige.
mount
second
or
making
are
now,
hard-hitting
heavily in the November
TEL: HANOVER 2-0050
TELETYPE NY 1-971
LERNER S CO.
Investment Securities ."
10 Post Office
-
Square, Boston 9, Mass.
Telephone ^
HUbbard 2-1990
'
* Teletype
BS 69
-
-
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