Full text of Commercial and Financial Chronicle : June 4, 1959, Vol. 189, No. 5852

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ESTABLISHED 1S39

•

r >■

"■

•>,/;

MICHIGAN

N 5

1959

?SUBtmfTt*Tio.n

Reg. TJ. S. Pat. Office

Volume-189

Number

5852

New York

EDITORIAL

Price 50

7, N. Y., Thursday, June 4, 1959

As We See
always been based

could

East.

Not

would

and

rich

"The

poorer as

conquered through the

population

and

the

years.

will

policies in the West is

gap

and

resources

between
who

minority

Predicting capital spending will increase 15 to
1959 in 1960, the economic consultant avers

race

have

modernized

and

the

The

vast

late business recession hit bottom in

when

the

Federal

was

world, who then

now

numbered

bring

page

[

now, l those
trends
have been reversed and despite the
- our
industry last year
maintained its world leadership with

recession,

sus¬

has been giving me a
concern of late.

gain of nearly seven million tons of

new

capacity.

;

But

increase

the

operations

during recent months does not mean
that all the industry's problems have
been solved.
One of these problems

Benjamin t.

great deal of

I might describe this problem by

airiest

referring to two great illusions which

crisis. Speculation in the stock mar¬
given concern to many.
When you draw up a

persist in some quarters.
One of them is that
competition for steel in the market

seem

there is little or no

Continued
address

♦An

given

the

page

Continued

34
♦An

by Mr. Evans before the Businessmen's Luncheon
New York Trust Company, May 27, 1959.

NOW IN REGISTRATION—Underwriters, dealers and

tial undertakings in our "Securities in Registration"

by Mr. Fairless before the
Iron and Steel Institute, New

page

investors in corporate

and poten¬
38.

starting on page

Section,

67th General Meeting of
York City, May iB, 19S9.

address

the American

complete picture of issues now registered with the SEC

State, Municipal

and

U. S. Government,

Public

Housing

State and
cr

STATE

Municipal

and

Lester, Ryons & Go.

MUNICIPAL

623 So. nope

Public

IIAnover 2-3700

Associate Member American Stock
Members Pacific Coast

DEALERS

BROKERS

Exchange

Pasadena,

THE FIRST NATIONAL CITY BANK

bank
Burnham

nt
department

30 BROAD

ST.,

and

MEMBERS NEW YORK ANO

15 BROAD STREET. NEW
CABLE:

AMERICAN STOCK CXCHANOEO

•

014-1400

Bond Dept.

•

;

ESTABLISHED

Chase Manhattan

Securities

BANK

Correspondent—Pershing & Co.

New York

•-

Imperial Bank of Canada
(Rights Expiring August 7, 1959)

1832

securities
Block

Exchange

offer

Inquiries Invited

Orders Executed On
Canadian Exchanges
-

Commission
-

Stock

Banks

canadian

Members
New York Stock

Maintained
and Brokers

Markets

Active

Dealers,

T. L.Watson &Co.

American

Teletype: NY 1-708

the

TELETYEE NY 1-22*2

COSURNHAM

Distributor

Dealer

Ana, Santa Monica

Inquiries Invited on Southern
California

Net

Underwriter

San Diego, Santa

OF NEW YORK

Company

YORK 5, N.Y.

BOND DEPARTMENT

del Mar,

Long Beack,
Pomona, Redlands, Riverside,

Encino, Glendale, Hollywood.

CORN EXCHANGE

current market.

Direct private

All

;

buy these rights at the

wires to Toronto, Montreal,

Ottawa, Winnipeg, Calgary,
Victoria

and

For

Halifax

Municipals

CANADIAN DEPARTMENT

Teletype NY

ftp

m'}

1-2270

{

BROAD

STREET

NEW YORK 4, N. Y.

DIRECT

WIRES TO

MONTREAL AND TORONTO

BRIDGEPORT

•

PERTH AMBOY

Donimox Securities
(0RPORA.TIO71

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

California

Vancouver,

Exchange

Offices in Claremont, Corona

chemical

Bonds and Notes

Stock Exchange

UNDERWRITERS

bond

Housing Agency
*

Members New York

BONDS

;

Street, Los Angeles 17, i
California

Securities
telephone:

■

ket has

afforded

are

loss.

Fortunately,

national political

SECURITIES
securities

DEALERS

recovery

Is it proceeding too rapidly?

teachings about how to make use of
on

operating

companies, in fact, were

farm

AUyn P. Evans

misery of many peoples to conquer or destroy
Continued

A year
the iron and steel industry was operating in the
trough of a recession and profits
were suffering sharp declines.
Some

ago

foreign competition, the decline in
prices, the sluggishness of the
recovery in capital expenditures, the
high cost of money and the inter¬

undeveloped lands—due in part

in producing the good things
of life and in part to population growth. One
supposes that he has in the back of his mind also
the fact that the Kremlin is well aware of Niko¬
the

Production

to lack of progress

lai Lenin-'s

rate

The past 12 months have been eventful ones.

April, 1958

Will
it collapse suddenly?
Some
point to the extremely high rate of
steel production, inventory accumu¬
lation and the probability of a strike.
Others refer to the
high level of
unemployment, the outflow 6f gold,

accumulated, sometimes at the

of what we now call backward peoples.
Jtiis apparently Mr. Stevenson's belief that basi¬
cally conditions are not only bad but getting
in these

this

Can

expense

worse

Index

tained?

perhaps- destruction to the nations

where wealth had

Board

126
after having declined
previous high of 147 in Feb¬
ruary, 1957.
The preliminary figure
for April, 1959 was 149.
As you can
see, the recovery to date has been
steep and substantial. We are asked:

many

hundreds of millions, could be aroused to

defeat:, and

our

reached

from

presumably Lenin's idea that the pov¬

erty-stricken and sometimes enslaved peoples: of
the

Reserve

way

foreign markets as well as prevent spread of
communism; opposes tariff or quota protection; aad
favors keeping steel competitive by keeping all costs
down, improving technology and by helping and encour¬
aging a rise in the standard of living abroad.
■

successfully meet. A mean¬
ingful analysis of the population capacity of both coun¬
tries, present and future, is also provided.

grow¬

build up

business and government will

majority of mankind who have not."
It

competitiveness. He endorses foreign aid

between USSR and U. S. A. is in the field

capital spending—a challenge which he believes

by rising costs. Announces that Iron and Steel
explore present and potential use of domes¬
and foreign steel products so as to enhance steel's

Institute will

over

the real

any

imagina¬

population; of this

tic

illusions: viz., steel

expose two

competition and cannot be priced out of the

market

small, wealthy, white, western

Mr. Fairless to

prompts

within the framework of the

is immune to

20%

understanding of the implications of this race

between,

And that regardless of temporary variations it

;

occur

of foreign steel and that of substitutes
one of increasing concern.
It

for steel is held to be

casts.

poor

The pre-condition of

The competition

economy's longerterm secular growth trend.- He predicts higher short and
long run interest rates and offers other one-year fore¬

faster than produc¬

grows

President, American Iron and Steel Institute

Mr. Evans is convinced recovery still has two-thirds of
the way to go in the business cycle—roughly another two

day at McGill University:

getting richer

By BENJAMIN F. FAIRLESS*

President, Lionel D. Edie & Company, New York City

by the titular head of the Demo¬

are

effective world

ing

the belief that the West

tion in the poor areas.

tive

By ALLYN P. EVANS*

party, Adlai E. Stevenson. Said Mr. Steven¬

the other

son

Copy

Immune to

wholly unrelated to this notion is

recent statement

cratic

Our Position in the

^The communist theory of world domination
has

Cents

115 BROADWAY
NEW YORK

1 NORTH LA SALLE ST.

CHICAGO

Associate Member of American 8tock Exch.

■

MUNICIPAL BOND

DEPARTMENT

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

Tele. NY 1-702-3

Bun It of America
NATIONAL

HVIncs ASSOCIATION

300 Montgomery St..

San Francisco,

Calif.

(2514)

Commercial and Financial Chronicle

Thursday, June 4, 1959

This Week's

Banks, Brokers, Dealers only

For

Forum Participants and

A continuous foram in which, each week, a different groupofexperts
la the investment and advisory field from all sections of the country//

Try "HANSEATIC"

Alabama &

Their Selections

Louisiana Securities

•

Over

participate and five their

experience*

years

they to be regarded,

STUART

geared for service

when

1958

rather

tion.

19 Rector St., New York
1

value for each

CHICAGO

INSURANCE

time

$7.00

New Orleans, La. - Birmingham, Ala

Mobile, Ale.

Cleveland, Ohio

Member:

Direct wires to

Stork

York

Exchange
American Stock Exchange and' 7

New

■■■•:

Stuart

Beringer

our

7 :1

JAPAN

•

/:S:|70 Q

taxes

backdeprje-;

$2,547,000jpri

earned

earnings during the past 5 yerir&

Call

Iff1/7

information

or.

write

Yamafchi
7

$3.45

1:'^'

'■

/""7 of New Yorkv Inc.;1
A,'r;-r

common
share. This
per

is summarized in the table'below:

current

Securities Company

$41,-

7524,599, Twin
7

Fop

In 1958 on

sales

;

branch offices

Midwest ^itM-k Excha/tge

per share The steadyVpfpg-1recorded in sales' andv^cash

ress

after

share) after adding
Ciatiori charges of

about ;

selling ]

stocks

amazing $3,120,000 (or $8.57, pfer^

in - J
vested, (and j
who
perhaps \
don't get too /

dollar

SAN FRANCISCO

Principal,Cities

'/ \ J. N, Russell & Co., I in*.,
-

6( N. Y,
HYl-1557"'^

HAnover 2-0700

MORTON A. CAYNE

cash earnings (prof- Coach .Company presents a caprtal
plus depreciation). gams opportunity that 13 primarily
as a percentage of operating rev,v^asfed. on the assuinptiorr that the
airplane is not
enues were at a high for the past;
going out of
5 years of 19.2% and totaled an!1
style: 7/7/7/ :^/v
its

preciate
am¬
ple
present*

Teletype NY 1-40

Members New Tori; Stock Exchange
Members American Stock Exchange

Nevertheless,

Well, for

those who ap¬

Exchange

Steiner, Rouse & Co

Venezuela.7>7?^?vCommon.-stoek of the Twin

the U. S., Canada and

excep¬

)

eighth con-

by the well-publicized depressed ^Twjn Coach Company >'
condition of -the oil- industry, in
,

general

■

Cayne, of J. N. Russell & Co.,
Inc., Cleveland, Ohio. (Page 2)

all-time high of $16,-

adversely affected during the year /

excited

LIFE

revenues

Bought-—S old—Quoted

City. (Page 2) .-77^7;7// f.'y ;"7' 7
Twin Coach Company—Morton A.

book

than

Associate Member

•

Beringer, Vice-President,
/■>• P. W7Brooks & Co., New York

278,000, marking the

ever

rule

Established 1920

•

Service Corp.—Stu¬

art M.

were

you

the

Wires to

■\Seismograph

values

Corporation

BOSTON

;

from

New Yort Hanseatic

Private

nor

day in Tulsa, Calgary,

Operating

Corp.

discounts

120 Broadway, New York

*
sell the securities discussed.)! 7 ):

reached

Servjce

long for tl
,ood
old days when sound
ine ..atrial
stocks selling at less than eight
times earnings *and at substantial

you

Try "HANSEATIC"

PHILADELPHIA

V,7

secutive year that they have; advanced. Net income after taxes
declined to $573,000 (or $1.57 -per
share) as against an average of
$753,000 for the past 5 years (or
$2.07 per share). Operations were.,

WOrth 4-2300

;

Caracus, and London.

New York City

Seismograph

American Stock

particular security,

"7'7

hours

P. W. Brooks & Co., Inc.,

System
serve you

information that they are working

BERINGER

Vice-President

Nationwide Private Wire

Ready to

offer to

as an

Large Trading Department

•

for favoring

(The articles contained in this foram/are not intended to be,
are

•

reasons

7..' '

•

(

in Over-the-Counter

Affiliate of

Yamaichi Securities Co.f Ltd.

•1

was no easy
7,;7 :"v 7: Tokyor Japan - ;>'• • 7/ ^..
Cash dividends have been paid
projected earnings), I would like
Brokers & Investment Bankers I
task
for- a
to suggest for consideration the each year
since the -company's
-/management
111 Broadway, N.Y. 6 COrtlandt 7-5680
common
stock
of
Seismograph stock was first offered to the puft-<
whp just. the
Service
Corporation
of ■ ; Tulsa, lie in 1946. From 1953 through
/
year /before
Okla.
But, like an over-eager the 1956 dividends totaled $1.00.
(
■,f W'a svjb es e t
-AN——
•msf.
story-teller who, in his concern per share annually, but were Te¬
with countless;/
as' to his ability to hold his audi- duced to 60c (plus 4% stock)Vin'
7-problems in a
ence's interest, lets the punch line 1957 and to 40c in 1958 as a result *
Morton' A. Cayhe
:mUtu
losing situa~
slip out before the joke is properly of lower earnings, unusually heavy
told, let me insert"right here, out expenditures for fixed assets and /tion.^ U^
cthe^feadersKip of
of context, that this stock, cur- a fairly tight cash position.
In President -W. H. Coleman (elec.ed
rently available around 14%, is view of the company's large cash in September, 1957),Twin divested
FUND OF BOSTON
selling at only 1.8 times -cash flow.the placingnfa $1500.(>00Tof
earnings of $8.57 per share in 13-year notes with Prudential lt\- pany, ivent, unio, a suDsiaiary
7
7 Prospectus ort Request
'
1958'
•
>
surance Co. in February, 1959,/arid manufacturing ^ marine
engines,
/:£ • "7/:7 7'\:7:|7/7/'774.v/;; 77-/f;>/' {.;
Turning now to a more orderly tbe" improving business ^"tlook;
GENERAL D/ISTRIBOTORS
review ol this situatibn, I should for the oil industry some dividend
Production Division
; prolikP to noint out that Seismoeranh
increase this year and the resto- duced post office vans, and sheet
,

STOCKS

If you can't

find

home for certain of your

ISSUES

INACTIVE

AU7.7/7:7 i

submit your

Perhaps
xtACBT

offerings.

;SEpriRiTiES/7:7;:

help.

we can

A CQ

C API AN

tS^:lAZr^04 I
kxth.

Metnfymt Pbttdr'-Maticy. Stprk

Motfofy A Pitt*-

^14 idcypf jftRKf, WiiU. ?,

PSNHA. $

^ f

^'engines and parU. The Kent,
whirt

Service Corooration

Continuing Interest in

daylo be the' worm leading

Fischer & Porter Inc.
Richardson Co.

ration of the former $1.00 rate in metal parts was sold along with
I960, both seem to be: reasonable North American- Marine of -War-

incoroo-

was

Possibilities. ,
.
saw. Ind.. which produced-small
plier of seismograph services and 7 The' compariy thus ,appears7to"
cbmplex electronic .devices used possess just t h b s e\ credentials
^ 1
< 969
j /2
r
'

gas companies through
out the free world in their unend

—hifh iir/inld
which

Established

Broadway

.1914.

Philadelphia 2, Pa.
LO 8-0900

ATT Teletype PH 30

for sale to

own

and

use

others:-;

seismograph

sur-

and Dealers

veys,

used

exploration

GESTETNER LTD.
"A" REG.*

investors.

among

(Lorac),

a sur-

off-shore

continuous

capitalization

with respect to

ice, Co.
less

established

ern

major

seven

to afford the most mod-

areas

cross-section

presentation

Bought—Sold—Quoted

ZERO COURT STREET, BOSTON 9,

/v J
'■/7

MASS.;

JfCornv of Waihinjjtqrt St.)
Ydepiion*

Rlchtrtond 2-2530 7-

? *
i

Tpday Twin Coach retains and

data,

employing

the

both

gravity
certain

average

ters,
Request

for

device for

new

competitive

this field.

example,

and

Seisver-

exclusive

converting old seismic

current

bull

six

discount

book

market
or

writer's
rare

the

price

represent- a

truly

inflation

the

market.

Cash Flow

Net

Cash

Revenues

Income

tion

Earnings

Income

Flow

$16,278

$573

15,858

853

1956——

13,665

572

$2,547
1,968
1,571

2,144

1.57

1955

11,439

757

1,287

2,044

2.08

5.62=

1954—

Liberty St., New York 5

11,271

1,012

1,143

2,155

2.78

5.92

$2.07

$6.75;

Teletype NY 1-4686
to Canada

""Based

that

•

*•*

3(M,00fl shares outstanding on Dec. 31,

1.059

•

Vou'ght,

Chance

Kairian«

™cPludT
bomb

racks,
missile
etc. 7 :
7' - j .7

,Space does not permit

pom-

cov-

7; ■,

duced for the government as part

of our defense

such

program

major defense
tory force.

American

well

as a

Twin

built special aluminum bodies' for
the "Mighty Mite" vehicle, which

7.75

portant

5.89:

drive military unit for the Army
Ordnance Department arid which

may soon

develop into

auarter-ton.

very'im¬

' ■'

and
' "

The "Pack Rat," a highly mobile

Continued

WOISTWAL STOCK INDEX
20-Year Performance

page

35 Industrial Stockst

four-wheel

is presently being evaluated

OVER-THE-COUNTER

Motors,

Ni Q. B.

retalia¬

$8.57

•

*he Strategic Air Command which

tested by the Marine Corps.
,

DIgby 4-2727

iriil-;

2.34

Liquid

contract!'

$1.57

5-year average
-

included

fromf Boeing,

For

-Per Share*

Deprecia¬

$3,120
2,820

which

Past'Plfe^suniinary-^of all aircrrift

Net

1957..

—-

undervalued special situation de-

the

lion

equities rudders,

opportunity to acquire

-In Thousands-

Exchange

Refined

or(jer backlog in excess of $35

influence

Opera ting;

1958

—

seems!

thus

opinion,

^ :'

value^ibftS1^^311'

higher in each of

years^tt

general

Alfred L. Vanden Broeck & Co.

Raw

earn-

ori this issue which has sold/

date

spite

additional

77/;|/$UGAR-7;;7.::'/'

flow

cash

share. Furthermore, the

has had little

viding

valuable

stock is selling at

its

from

per

records to magnetic tape are pro-

such

twice

earnings and at

30%

design, jgives-at 14

certain

company

for geo-

service

physical

_and

°hio*

ings, at only seven times 5-year

$20.72

advantages

••

Flexible Company of Loudenville,

logging services.)

common

thin

devices of advanced

Private Wire System

•

Twin in years prior to 1958, and

company in

Nevertheless, Seismograph Serv-

been

seismic,

Tel.: BE 3-8880

;

388,0G0;Parts DiyisiGn ^-v^re

of, just

•

this wire-line service

operations. Playback centers have

re-interpretation

PHILIPS LAMP N. V.

Bradford, Pa., is expected to fur- stocks all replacement parts and
ther
strengthen
the
company's? services transit-type urban buses5
competitive position
principally sold ./and manufactured by the

tape recordings. A comprehensive

New York Stock

shares of common stock, including sales offices, Kent, Ohio, and Fort
24,000 issued on Jan. 1, 1959 in Erie,-Ont., Canada, sells replaceconnection-with the acquisition of •. mbnt parts for-buses and other veBirdwell, Inc. (The purchase - of hicies formerly; manufactured .by

seismic data from field magnetic-

AD. R.

Members:

•

It is

velocity logging and gravity meter

oil

UNILEVER N. V.

provides

e company

service

vey

price

generous

reserves.

In addition to

♦Review Available

llon-)

would normally-command a

facture of such equipment
and
7.
othgr. specialized, electronic, ap-*

paratus both for its

For Banks, Brokers

lion.)

company has been responsible for some of the important new

1529 Walnut Street

New York 6, N.
CO 7-1200

narmallv-PAtininan/l

-3 csCAA/i*oLLeA CO., INC.

The

BOENNING & CO.

115

an established leader in its operates their Aircraft, Missiles
field, has developed considerable • Division at • Buffalo, New York,
technological know-how, provides which is an important subcontractechniques and equipment in the ?n important service to a basic tor 6f /ttiajor airframe components, ! LAMB0RN & CO., he.
geophysical field, many of which industry, has a long record :/of special sub-assemblies for vehicles
99
WALL
STRETET
are
patented, and has recently steady growth and large proven and other products for. .the marine
/
substantially expanded its martu- earning power; and has a small and? missile industry. The Service/ 1 /"//"'NEW YORK 57 N.

ing search for oil and gas

Keyes Fibre Co.

■

sup-

by oil and

Stouffer Corp.

KELLER BROTHERS

7
.

FOLDER ON REQUEST

National Quotation Bureau
Incorporated

46 Front Street

* New York 4, N. Y.

Volume

189

Number

5852

The Commercial and Financial Chronicle

(2515)

Become Active in Politics
To

Stay Active in

Secretary of the -Treasury presents business with a
bflTof particulars
pointing up the need to undertake a far
not

If.

supported in his efforts
*

He urges the President be

have

learned

that

best

a document is handed to us
for signature, it is wise to' turn it
aver before
signing and read the
fine print on

real

the

tough
*

prized posses¬
citi¬

country.
evidence

the

Geo. Humpurey

■

•*••••

the

odds

are

against

99 WALL

;

STREET/NEW YORK

•

______j

Telephone: WHitehall

___

4-6551

Steel Stocks—Ira U. Cobleigh

Looks at the

Future—Donald C.

the Last Meeting—Ef.

Power

KRATTER CORP.

j* Hanley__

earth.

The Big Squeeze

ASSOCIATES rV

We'ly-l'"

Little Steel—Alvin F. Franz___

ACOUSTICA

Financing Considerations—Robert C. Horton_

EQUITY OIL

MacLEAN INDUSTRIES

ineome

EMPIRE STATE
OIL

ALASKA OIL :
7

& MINERALS

BASIC ATOMICS

Have Planned Retirement Program

Regular Features

/;;
As

See

(Editorial)-*——;

.2.

___

J.F.Reilly&Co.,Inc.

Cover

by which
Bank

have gained the most satisfac-i

tory standard

•■■■

Bank of New York Survey Indicates Few
Professional People

is our.

system. "It is ourr

and

Insurance Company Investments in the First
Quarter of 1959__

of living

and

Insurance

Stocks

man's
Business

history. It is^rm,the^e^jobs,^d,

dear and that gen-

;• "l

Minutes, of

.v>,The

most

business

wages

■

that

we-alf hold

on v

kind of government

our

the

A Telephone Man

;

free business system that produces;;
the jobs that make the goods and

freedom

;

of choice
»

of the

our

is
-

It's

cherished

our

striking' 'Features About

system of free economic choice—,
our
free
competitive enterprise
system—and this, in practical form '

zenship in this

/^ Fiscal and Monetary Outlook—Victor R. Farhi__
>' r.
\
c.

important
things for us to preserve, defend
and improve through the exercise i

most

sion

government

One

V The ballot is
e

tions.

t h

always remember; we must
"Fne Changing Pattern of Our Economy—Edwin G. Nourseforget, that a good jbrra ofV ' /
'..2,2.:.v'22;2 A 'V ;
>
government does not guarantee /"" The Inflation Problem and How to End It "
4
good government.-^You. only* get
—Frederick A. Bradford
good government by using a good
system
*
*
vigorously
and
intelli¬
$
$
gently. v

obi igations
and * condi-

never

carries

j
■-

must

k,
which usually
a

Cover

But

policy.

d when

CAME BACK

;

______

mmmmmmmmmmrnrnmr

THE MONKEYS

Basic Change in Our World Trade
Position

rv/—George S. Moore__i______/_;

t h

ju»D OOMVAMY

•/r

Notes, for example; that agriculture
takes all- surtaxes paid above the
20% rates, five-sixths of
N
/ which is for price supports.
us

pricing policies; ridicules the notion a few people can admin¬
ister prices in a
vacuum; and to preserve a healthy business
climate, recommends informing employees and stockholders
on
importance of freedom of choice^ fiscal responsibility and

Most, of

_2'__ _2_2__ 2_

■

and

wage

Obsolete Securities Dept.

warns that politically determined
costs/can- price
business out of better markets and
adversely affect

•

_*_—

r—George M. Humphiey__i.___i________;

f.'.w*,si: i-V.f ."■J'

budget ;

sound monetary

Cover

•

V./ /.There Has. Been

limit spending and to balance the

wmmmmm
-

-v

Sjsr

Pago

[iCHTfDSTtfl

B. S»

v;Become-Active inr Polities and Stay Active in
Business

■

your obsoletes!

themselves out of their markets.

All yn P. E vans—________

/■ '

active part in politics in both parties/ Concerned

Articles and News*

Our Position in the Current
Business Cycle

/,?,

only with the apathy businessmen generally display;<■ in ♦
handing over the "power of attorney" to office-holders, Mr.
Humphrey ;* also admonishes business aridlabor on pricing

it'

—Benjamin F. Fairless—_

Former

?*-■

Who Says the Steel
Industry is Immune to Competition?

Chairman, National Steel Corporation
Pittsburgh, Pa.
? -

•

By GEORGE M. HUMPHREY*

greater,

I N DIE X

/V-

Man's

Bookshelf

fought
Coming Events in the Investment Field
w

;

support

Jiut.vnow-" many

nave

^thought to read the fine print
the back?

How

many

re-

it/if its- benefits

are

T '/Of

tilof
"..

course,

there is

literal

incomes

sense,

fine print on the. back

the ballot. But in

whole

use

sentative

arLd

and tradition of repre-

government

our

have

-8
18

Indications of Current Business

free business sys-.

PACIFIC URANIUM

From Washington Ahead of the News—Carlisle
Bargeron—_

FIRST LUMBER CORP.

Activity, j

ELECTRONIC RESEARCH

that

nly real sense,.a great deal of very
\ important—and very fine—print
1st involved.
This is found, not on
the back of the ballot, but in the
-

our

Einzig: "The British Ingrained Free Trade Mentality"

siphon off the wealth*
supports our churches, our
art and literature and music, our
great j private
universities, our.
health and recreational facilities,

absolute-

tern that

R^r>nmmendaHnn«

Investment.Recommendations.,

4 'jVr

"• *

en<^ure'*"'<.

8
.

Investment

pr'ovide

and lo

roads> harbors, social security andemployment
benefits, ' and to
achieVe the military and economic!
objectives of-our foreign policy/
It is from the jobs and goods and

^sponsibilities, this great privilege
-Tcarries- with

government^to denation,' to .educate our-;;:,. Dealer-Brokw

our

selves

ap-

preciate. the^obligations,, the

•

fend

entire

the

material

cultural and

ASSOCIATES

Mutual Funds

•

News. About Banks and

Bankers._____21.

Singer, Bean

fabric of

Observations—A.

Wilfred

Our

spiritual life-.....

Governments.

May.'

;

developed it in this country. The
It's Time Business Responds
Very word representative means ;
Business has been in. the po-;
that we elect people to represent litical dog house in this
country
4us in our local, state and Federal long enough.
It is shot at from:

Reporter

MACKIE,

INC.

•

'governments;;
that

and; these

elect

have

power ovei* our
legislative and
branches of
fnent.
1

our

tremendous

businessman.

Our form of government

merit ever devised.

But

kind

our

When

be the
if it is
informed

government can only
'best kind of government

intelligently

used

■people, determined
'

———

print
more

May

aio,

1.-/

.:••*-

Prospective

Philadelphia

Cleveland

Los Angeles
~

Chicago

[

i
1

^
'

•

...

Continued

to warp,

The Security I Like Best.

The State of Trade and Industry

For many years we

specialized in

DDCrCDDtfl

KlI LIiIIlU

;

Reg.

25 BROAD

York

New

Stock

Exchange

DANA

GEORGE

WILLIAM

Patent

2-9570

Publishers

t. MORRIS8EY, Editor

Presidenjt

flete statistical, issue t— market clearings,
ecords, corporation news, bank quotation

Boston
-

Glens Falls

Chicago

Schenectady.

state

Worcester
*

and

Other

city

news,

Offices:'

Chicago 3, 111.

135

etc.).
South

sei_„

Salle

St..

(Telephone STate 2-0613).

.^s

matter

Febru-

it's

your

Subscription Rates
Possessions,

Deminioij

Union,

States,

and

$65.00

Other

$45.00

and

per

one

useful tools in
new

customers.

year,

Note—^3n

rate

foreign
be

place

S.
of

year.

THE COMMERCIAL AND

Record—Monthly,
Postage extra).

(Foreign

account of

the

fluctuations

exchange,
remittances
for
subscriptions
and
advertisements
made in

smart

Publications

Quotation

year.

Members
per

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

Bank

mast

United

Territories

Pan-American

the
La

Every

securing

"""'Miam B. Dana

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

Other

Thursday, June 4,. 1959
Thursday (-general news and ad¬
vertising issue), and every Monday (com-

most

Company

Subscriptions

;Copyrlght 19t"*

N. Y. :

957S

DANA SLIREBT,

Reentered

Office

COMPANY,

CHRONICLE

Place, New York 7,

REctor

TELETYPE NY 1-5

Park

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300

The COMMERCIAL and

WILLIAM

Members

.Published Twice Weekly

FINANCIAL

I UUllO

Spencer Trask & Co,

the

CTflPK^

Advertising

Vdgd 30
Washington and You

' Dallas

in foe course of business, to im-

Nashville

Offerings./

Security

ariy power of attorney*you grant

New York City,

Albany

Direct Wires
San Francisco

•

-•/

Securities Now in Registration

extensive and effective than

Teletype NY M825 & 1-4844

—18

the

iyoy.

have

■

* T

Exchange Place, N.fc

;

Securities Salesman's Corner
i
the fine/
political office-,
':%>**••
*
•
?
of attorney much - The Market.
and You—By Wallace Streete

67thstrengthen,

; Iron and Steel Institute,

and

duties

have

to.

the ballot,

the

power

47
<

takes his

•

we use

gives

holder

political

....

tRailroad Securities

is the sound governmental objectives and

fulfills his
obligations.

Report.——

place in leadership-toward

proper

'/Public Utility Securities—_2—

have is created by
and1 it's
time-vevery
businessman

Reporter's

Almost every mate-

American

executive
system of govern-

Our

business,

the

best, the most effective, and the
inosto equitable * form of govern-

•

quarter/I'm proud-to he

-every

lives through the* rial benefit
V

people

HA 2-9000

New

York:

funds.

FINANCIAL CHRONICLE
*

25 Park Place, New York 7

Financial Chronicle

The Commercial and
4

Thursday. June 4, 1959

(2516;

business, Minute Maid to watch
manufacturing, etcf?
: f
Other reasons for splitting ably
advanced by Mr. Clayton include

Steel Production

The.

Electric

By A. WILFRED MAY
STAR SPLIT PERFORMANCE
Surely

IBM- is entitled

Oscar for its ever

performance. Of course, its mar¬
gyrations
have made
big

ket

profits
and

all

for

the broad mis-

•.

conceptions
concerning
that
glamor¬
ous phenome n o n,
the
stock
split.

WMm

most
A.

Wilfred

M«>

New Deal promptly rise again in their role
of Split Candidate. In other words,
following the

has been
"split and split and split,
rise and rise and rise."

slogan,

Auto Production

range. -;

the

Beginning the year 1956 at 403,
price already representing a

higher

monthly publication of the
Demands

the

1957
further to 575,

By May first

on.

when another

split, this time two-

for-one, adjusted the price of the
new
shares down to 288, with a

industry's findings to show
is the price range to
shares should be split, to
increase the shareholders' list. He

that

10-20

which

further

maintains that the public

wanting the Blue Chip issues, in¬
stead of buying them directly at
by the splitabiiity coincident with their high prices, acquires them
its continuing high
price level, indirectly by purchasing the lowthe stock again staged a sensa¬ priced funds—thus materially de¬

year-end close at 300. During the
following year, 1958, re-stimulated

priving the companies of stock
(representing a price-earnings ownership-broadening.
ratio of 50); with a further ad¬
"A company's stockholders are
vance to 603 by this year's April
prime prospects for its products
split-time. Again, from its three- or services" is another popular
for-two post-split price of 390 on
reason
for splitting cited by Mr.
April 29 last, our tireless "Split Clayton.
But this advantage is
Candidate" has, of course, during
surely inapplicable to all but the
the past month sensationally risen
companies catering to the cona
hundred points back to 488—
sumer.
The investor's affinity for
where it is again temptingly splithis
stock's
ticker
symbol pre¬
able.
sumably would not help the sales
..Thus, by its policy of using the of machinery, metals, steel, air¬
small-sized split (as 3-for-2) to plane, tool, cement, heavy chemi¬
further its aim of keeping the cal, shipbuilding, realty, or missile
market price from getting out of enterprises.
And
does
not
the
hand, the management is unwit¬ feverish state of today's market
tingly
stimulating
the public's speculation reduce stock traders'
"Split Candidate" speculation.
tieing-in of their stock with its re¬
spective business (with occasional
tional rise to end

the year at 552

Price Reduction Not Indispensable

The

IBM

reduction of

record
a

shows

that

stock's price below

confusion from nomenclature:—as

the

sometime

the

past

eral

account

month. April personal income was
than in the same month of 1958. >
The current upsurge in the flow of income to individuals has
reflected wholly an enlarged volume of disbursements from pro¬
ductive activity.
Transfer payments have changed little as the
continuing decline in unemployment insurance benefits has ap¬
proximately counterbalanced the rising trend in other types of
social insurance benefits.
The

vanced

has

the

•

of $213

the

year

the first

seasonably adjusted annual rate

at a

billion, 8% above the recession period a year ago.
physical volume.
' *
-

Sales at durable goods

Most

stores registered another marked rise

spring, following the large gains made in the closing months
of last year. This has been especially true for automotive dealers,
who experienced a 10% increase in their total sales in the first
of this year
seasonally adjusted.
quarter

Sales by

Inc.,

tered

1958,

compared to the fourth quatrer of

building materials and hardware dealers have regis¬

sharp advance so far this year.-Seasonally adjusted, sales
quarter were more than 3% above the fourth quarter.

in the first

Furniture

agency's
office,

for

10 Post Office

has been

year.
a

and appliance sales

have been tending slowly upward

buying

In both of these groups the strength in home
stimulating factor.
:
'
.

were up 5% for the
from the corresponding pe¬
riod of a year ago; marked advances have been registered by
general merchandise and drug stores.
Prices have shown little net change in recent months and now

Retail sales of nondurable goods stores

Mr.
Richards

Robert

Richard s'

first four months of the current year

associa¬
with

was

this

been

prior

personal

of this advance was in

Boston

tion

steady advance in

Preliminary figures for April indicate sales for

months

four

reflected the

have

sales

Retail
income.

Guen-

Square.

payrolls, in turn, has derived principally from

The advance in

transferred

about .$3 billion in both

higher employment', although small further increases in hourly
earnings and hours worked also have contributed. The employ¬
ment reports for April indicate an extension of the significant
improvement which had been noted for March—sizable gains in
number of jobs and an accompanying reduction in unemployment.

Albert

ther Law,

payrolls in the economy ad-<
March and April, reaching a record

At annual rates, aggregate

high of $253 billion.

exec¬

expansion has centered primarily in wages and

income

salaries.

York

Frank

billion from March and about $7 Vi

averaged around $1 billion per

headquarters
of

Increases in the preceding half year had

$23 billion, or 6*£%, larger

utive with the
New

seasonally adjusted, annual rate of $372^

than

from February.

billion

sev¬

years

which is still lagging*is tbe foreign market,
tended downward in recent months."' / J .

total at

overall

billion—up

Branch of Albert Frank

And

.•

I The strong current performance of the economy is evidenced
the rise in personal income.Figures for April; place

With Boston

the stock advanced

clearly by

Robert

Department of Commerce.

broad area of demand

the

Business Economics

rising briskly in most markets.' In fact, the only

arc

where exports have

investing public's misconceptions
about the essentials of the split

better-than-seasonal
from the data now

issue of the "Survey of Current Business,"

in the May

announces

engaging in a split; and in most
cases
conscientiously attempts to
forestall its shareholders' miscon¬

ratio of 31, the
issue, propelled by split expecta¬
tions, rose to 534 by the end of
April. The declaration of a fourRichards
for-one split at that time reduced
the price of the new shares back
to 400, whence renewed split ex¬ study, - "Observations
on
Stock
pectations promptly carried them Splits," Harold Clayton of Hemp¬
BOSTON,
Mass.
hill, Noyes & Co. cites the mutual
up to 550 at the 1956 year-end.
Richards,
for
fund
pricerearnings

Extension of the business advance at a

and on a broadening scale, is evident
available-for the spring quarter, the Office of
pace,

corpora¬

generally sound

itself

tion

that

concede

Public

Fault Lies With the
We

process, thus intensifying sense¬
price, the more less speculation in large areas of
the market.
Let the commenta¬
splitable, and hence attractive!
tors,
and
the
Stock Exchange
authorities as well, do a realistic
A
New Study
educational
job,
to
lessen
its
The ]>opularity of IBM, whose
abuse as an inflationary market
$400-$500
split
price
tag
lias gadget!
.-d
hardly made it a bargain-base¬
ment item, seems to cast doubt on
conclusions held by the pro-split¬
ters.
In a new and interesting

the

process

Busineos Failures

Food Price Index

Following

example, these issues would

IBM's

k s, as a

counterpart of a famed

and

than for promoting
For the
of this high-

holders

per

popular of
o c

and Industry

ceptions. One corporation's cur¬
of splitting per se is more
rent
split
proposal, amendment
important to the investor than is
not only prominently states that
the consequent reduction in the
splitting will not in any way alter
shares'
price. < Directors of Su¬
the proportionate interest of
perior Oil and Christiana Securi¬
stockholders, but also sets forth
ties, take heed!
To get in the
the amount by which brokerage
split-and-market rise-groove, just
commissions
and taxes will
be
shave Superior down to the 1,200higher on the equivalent trans¬
range from its present 1,800 level,
actions in the new stock; namely,
and Christiana only down to the
by 45% on a stock selling at 50.
10,000
range • from
its present
Harm results rather from the
$17,000
share tag.

highlighting

any more

Commodity Price Index

low price-

regardless of a

Chip

Retail Trade

State of Trade

process

in¬

valuable in

ship

favorable market action.

1957, to 66,667 in 1958, and 81,000
currently.- Evidently
the mere

important, the
public's reac¬

This

50 level is not neces¬

for broadening share owner¬

priced stock has grown from 31,024
at the end of 1956 to 57,330 in

sun¬

are

sary

number

dry. But more

tions

100

the

sensational split

Output

Carloadinz3

public's preference for buy¬
ing in round lots, and the desir¬
ability of corporations catering
to the public's predeliction for a
low
price tag,—and he further
notes that a Blue Chip is a Blue
the

the

Bedford

New

(Mass.) "Standard Times."

little higher than a year ago. Both at retail and whole¬
products of farm origin have shown appreciable declines,
and nonagricultural prices have tended upward.
Wholesale in¬
dustrial prices turned up in mid-1958 and have risen since that
time a little more than 2%—about the equivalent of the rate of
increase for the two years preceding the recent recession, i.e.,
mid-1955 to mid-1957.
During that period farm and food prices
were also rising most of the time,
and the average of all prices
showed a rather steady advance.
' '

average a

Wm. Nichols V.-P. of

sale,

Wm. E. Pollock & Co.
William
elected

Nichols

has

Vice-President

been
the

investment firm of Wm. E. Pollock
&

Co., Inc., 20 Pine Street, New
dealers in United States
Government securities,
and un¬
derwriters and dealers in state,

v...

York City,

ascription of Sea¬
the plane flying 'municipal, railroad and industrial

board Airline to

securities.

Pittsburgh Bond Club
Outing

To Hold Annual
the

■

j ;

• •

•

-.-.j.

..<«;•

■

-i

•

Week
.

•

this week will show an increase compared
Preliminary figures compiled by the "Chronicle"
based upon telegraphic advices from the chief cities of the country,
indicate that for the week ended Saturday, May 30, clearings for
all cities of the United States for which it is possible to obtain
weekly clearings will be 14.0% above those of the corresponding
week Jast year.
Our preliminary totals stand at $25,170,301,278
Bank

with

clearings

year ago.

Continued

Pa. —On June
of Pittsburgh

PITTSBURGH,
19

Nationwide Bank Clearings Up 35.7% From 1958

/page

Club

Bond

will hold its Annual Spring Out¬
1870

ing at the Longue Vue Club.

Specialists in Canadian Securities

Baker, Simonds Branch
DETROIT,
branch

Correspondents inprincipal cities

throughout the United States and Canqda

Co.

has

BF-7

opened

Northland

Concourse, Northland Center, un¬
--

direction

the

der

William

Now Britton,
SIOUX

OF INVESTMENT SECURITIES

Grace Canadian Securities,

name

has

CITY,
C.

Pecaut

Iowa—The
Britton

firm

Broadway, New York 4, N.Y.

Orders Executed at

been

Dominick

Members New York, American & Toronto Stock
14 WALL STREET

Exchanges

United Imp. & Inv.
United Improvement

ing Corp. has been
NEW YORK

regular commission rates

through and confirmed by

ton, Pecaut & Company.

Dominick

NY 1-4722

HAnover 2-0433

Com¬

Orpheum Electric Building,
changed to C. W. Brit¬

pany,

offices
New

Inc.

Members: New York Security Dealers Association

Benjamin.

UNDERWRITERS AND DISTRIBUTORS

Principal for

Mich. —Baker,

office

Simonds

Brokers, Dealers and Financial Institutions

York

West

City,

securities business.

& Invest¬

with
Street,

formed
43rd

engage

Members:
The

Principal Stock Exchanges of Canada

National

Association

of Security

Dealers

Broadway, New York 4, N. Y.

Volume 189

Number 5852V.

been

By GEORGE S. MOORE*

capacity

The closing of the dollar-shortage
petitiveness of Europe, Mr. Moore
of

era:

and the growing'

says,

could be

diverted

from
:

Third, a tapering off of the
European boom resulted in a de¬
cline of inventories so that the

com¬

end

the

volume

••

II.

significance, for American indus¬
try and labor,. of this movement
What do these developments in of American capital to Europe. As
Europe mean for the American long as our capital can move free¬
exporter? They mean increased ly to foreign countries —attd it
competition in contrast to the era would clearly be a.denial;of the
of the dollar shortage, when many system for which we stand and of
the -key -role. of the- dollar in the of
our
exports were virtually
alone- in the field. More ahd more worldrto place any:;impediments
against it-Lit. can be. used "to: em-'
we shall have to face stiff com¬
,

•*

- *

■

•

The American Export Problem

of Europe's imports, in¬
cluding imports from the United
States, tended to fall.
V petition from the factories of Eu¬
rope and Japan. This is the kind
J Finally, world commodity prices
of world that we have tried to
fell so that Europe and Japan
build. We must now learn to live
were able to get the reduced vol¬
with it.
ume of imported; materials at con¬
.Not; only do we have to adjust
siderably cheaper- prices: In fact,
to the new situation, the Euro¬
as export prices were: maintained,
in the face of falling import prices,: peans .must adjust to it too. Most
of them still discriminate against
the terms of trade (i.e., the spread
between these); of many of the American goods in spite of the
fact that the coming of conver¬
countries of Western Europe im¬
tibility has removed the financial
proved on the. order of 10 to 12 %

attests to the success

efforts-andf thus, we-must learn to live with the resul¬
tant^ and not unexpected, stiff competition. He writes on our
export problems, competitive position, balance of payments
and weighs the consequences of'all this for our foreign trade
:
prospects: : Abjuring we must not revert to protectionism, or
end our foreign programs, ot remain complacent, the New Yor^
banker recommends we militantly discipKne ourselves at home,
pass the Boggs Bill, andexplain the facts of our. changed
worid economic position tothe
public. The-fact that currencies
'areconvertible and any lessening of trade restrictions against
U. S. goods aids our competitive position should not
go un¬
noticed- he adds, nor for that matter the change in Europe's
our

The net result of these factors

products not included in the for¬
eign manufacturing program.
x .
I should like tor think Of the
,

domestic needs to export.

Executive Vice-President,
The First National City Bank of. New York, New York City;

Second, the boom in Europe was
tapering off during that year so
that more and more of Europe's

In Our World

the

and well directed efforts,

ous

remarkably vigor¬ ourselves, since
had w;ar.
•*.
than fully restored. '*

their own

and

Has Been

(2517)

The Commercial and Financial Chronicle

basis for such discrimination. This

ploy resources abroad rrather than
at home. In other words, While it
is entirely consistent with * our.
world position {to be an exporter
of capital,, we cannot let our costs
at home get so'far out of iine. that
our capital
exports are simply
resulting in the employment of
labpr, This .as :an aspect p£ die
foreign raxh^Tfhan American labor
competitiveness of our\ costs that
many", able leaders both An. "busi-"
ness and in labor may sometimes-

forget.
.
;
means that traders who come into
improvement in the
possession .of convertible curren¬ „!7
III'-.;
■'
international financial: position of
favorable factors.; v
:
cies may nevertheless be
pre¬
The Competitive Position of
Western Europe and Japan. West¬
vented from buying in the United
U. S. Exports
of success was the restoration of ern Europe alone gained a total
States by direct import restric¬
The End of the Dollar
convertibility of the principal Eu¬ of about 3.6 billion in dollar and
It is still not entirely^ clear as
tions
or
quotas
imposed upon
ropean currencies at the end of gold reserves during the year and
Shortage Era
United States goods by the country to how fundamentally the com¬
1958.
thus
absorbed ' practically
the
^ v v.
of their residence.
Some of the petitive position of our/ exports
J The general, theme of what I
has been affected.
In manufac¬
The end of the dollar shortage whole of the dollars that we sup¬
want to discuss about world trade
European countries have relaxed
era
really means that the prin-: plied the world during that year. their quantitative restrictions but tured goods, our exports" art? Still
and America's place in it, is that
The primary producing countries,
more • than
double our imports'
I think we have come to the end cipal countries of .WfcSterit ,EqrPpe.
others, in particular the United
plus Japan, have now had their plagued by lower prices and re¬ Kingdom and France, have lagged and we continue to be " far and
of
an
era.
I
duced export volume, were not
desire for international liquidity
shall call- it
behind. Generally speaking it is away the world's largest exporter,
able to add to their reserves at all.
of manufactures: Bjut there* "has
t he dollar
,£atisfjte4t fi' By,.,
large,. these
now possible for the United States
been slippage. In 1958"'duJ*' fexn6rts
countries feel that their reserves As you-weil know, the Western to
export
industrial materials,
Shortage era.
today are
adequate. Even
the European countries converted a basic foodstuffs, and certain types of manufactured goods were only.
During that
British, whose need for reserves large part of their increased dol¬ of capital goods into the Western 2.4 times imports as against 3.2
period Ameri¬
times
is greater than that of some other lar reserves into gold—$2.3 billion
imports in 1956 and 3.4.
can
European: countries, but we can
policies
times in 1954.
The decline' last*
countries because they must run of it in fact. It was not so much
have been de¬
export only token amounts of con¬
that these countries had lost con¬
a world currency also, feel more
year in our exports of .manufac¬
sumer goods so that most of the
signed to re¬
fidence in the dollar; it was sim¬
tured goods is all the more sig-,
comfortable and have not been
construct .the
advantages of the liberalization in
because
industry
was
deterred by a shortage of reserves ply that most of them were gold this area have flowed to other nificant
W e s t e r n
from taking a number of expan¬ holding countries by tradition so
seeking foreign orders to compen¬
European countries rather than to
world and
that as their reserves grew, they
sate for slackened sales at home.
sionary measures to combat their
the United States. It should also
build the kind
But Western Europe and Japan
automatically
converted
their
recent recession.
be remembered that the conver¬
of world trade
were
more
successful than* we
newly acquired dollars into gold.
You might well ask about the
and
tibility moves, except in Ger¬
financial
To some extent, this development
were in maintaining their exports
dollar shortage of the developing
structure in
many, only restored what is called
is continuing in 1959, so we are
of manufactures. I need only cite
external convertibility.
There is
George S. Moore
countries, but I submit that their
which we
still suffering gold losses to Eu¬
automobiles as a case in point.
desire
for
want to live.
liquidity can
never
good hope for further liberaliza¬
rope
and Japan, though at a
During the second half of 1958,
tion
of
dollar
I thisjk the United States can take really be satisfied, at least not in
imports because
markedly reduced rate.
with the advent of convertibility the U. S. exported 10% less manu¬
great satisfaction from its part in our generation. Their needs and
The finishing touches are in the one
factured goods than during the
currency is as good as another.
building this world.
We began their urge to develop are so strong
the job after the war with such that they will tend to use any process of being put on the inter¬ There is no point, for a convertible first half of 1957, a period during
national structure that we have
country, to try to economize on which world trade in.-manufac¬
programs
as
UNRRA
and
the dollars with which Ihcy are sup¬
been trying to build by the in¬ dollars
against any other conver¬ tures reached an all-time peak. At
Marshall Plan and have continued plied. *
crease
of 50%
in the quotas in tible currency.
It might simply the same time, according7 to- pre¬
The ending of the dollar short¬
right down to the present day
the International Monetary Fund be
with other forms of foreign aid. age era in 1958 came with un¬
cutting off its nose to spite its liminary data, Germany increased
and the International Bank for
face by denying itself access to its exports of manufactures by
There has also been an increased usually dramatic swiftness.
During Reconstruction and
14% and Japan by 6%; the United
Development. the cheapest market.
flow of private American capital that era, American exports had
This increase in quotas will help
Kingdom's exports dropped* 4%
and tourist expenditures.
And so we must face the fact
In the it all their own way, principally
all countries, developed and un¬
and France, on the whole, main¬
trade field: we have continued the because we were often the only
that European developments in
tained its position. Italy and the
derdeveloped alike, but let us not
the last year and a half have not
Reciprocal Trade Program with its source of supply for many goods.
Netherlands increased - their ex¬
forget, it—they also represent, in
steady reduction of our tariffs and This was brought out in striking
given much help to our direct
the consequent stimulus to our fashion as recently as 1957 when effect, an additional line of credit trade with Europe.* Many Ameri¬ ports of manufactures,'Belgium,
on
the resources of the United
Luxembourg
and
Canada, lost
can
imports. • These and- other factors our exports soared to. the recordcompanies are meeting the
States., v
.V 1.
ground, and Sweden and Switzer¬
have supplied the world with a breaking
situation with manufacturing fa¬
level of $19.5 billion
land mere or less held rtheir posi¬
One final point about the com¬ cilities already located in Europe
growing volume of: dollars. In largely because the Suez « Canal
tions. The net result was^that the
fact, many people do not realize was closed and£ there were maj or petitiveness of Europe: 1959 has: or within the Common Market
reduction in world rtotal exports
it but the United States year after crop failures in sortie of the coun¬ brought the Common Market. The area. Many others are exploring
of manufactures was accounted
six nations of this market have the
year in thisr decade with only one tries of Western Europe, all in a
possibilities. While the basic
for principally by the fall in U. S.
about the same population as the
or two exceptions, has been run¬
concept is to substitute local man¬
period of boom. In A958, how¬
sales/ Thus our share ip total'
ning a substantial deficit in its ever, our experts "steadily ' de¬ United States although their gross ufacture for exports from this
world exports
of manufactures
balance of payments. We have in clined as the situation returned national product is
only about country, this is not always the
slipped to 24% in the second half
this way made a great contribu¬ to normal, so the export figure 40% of ours. It has been growing case. Often the productive facili¬
of 1958 from 26% .during the.first
tion to restoration of more normal for the year as a whole was only twice as fast and is likely to con¬ ties provide only partial manufac¬
half of 1957. Germany on the
tinue to grow at a relatively faster
international trade and financial $16.3 billion.
We began to feel
ture and assembly and include other
hand, displaced the United
relations.
Western
Europe
arid acutely the competition of Europe pace than we, at least for a time.
the use of component parts to be Kingdom last year as the world's
Japan have been rebuilt and their and Japan in a world situation Over the years immediately ahead,
second largest exporter; its share
productive capacity has been re¬ that in several respects could the Common Market will not only exported from the United States.
rose from 17 to 19%. The share
stored. The most important signal hardly have been more favorable become a great free trade area Also, the resident company often
Continued on page 33
corresponding roughly to the facilitates, our export sale of other
for our competitors.
♦From an address by Mr. Moore be\
First, their productive capacity, United States, but there are good
fore the World Trade
was a

marked

...

.....

Dinner, Milwaukee,

Wisconsin, May 19,

1959.

due to the combination of our aid

prospect^ that

the

rest

the

countries of Europe as well will
be tied into this area in some way

These

reduced barriers

are

proud to
of

our

announce

sons

DAVID

GERALD
DAVID

the association

trade will strengthen Western

Europe immeasurably and thereby
the whole of the free world. These

with this firm.

peoples are striving for many
things Americans already have.
They are able, resourceful and
hard-working. There is no good
reason why they cannot have what
they are striving for, nor will

GINBERG
MARKOWITZ

other.

STRAUSS

this be
a

STRAUSS, GINBERG & CO., INC.

Telephone: BArclay 7-7631
June 1, 1939.

work side

Teletype: NY 1-3636

struggle

has been admitted to

general partnership in our firm

Rhaades

by side with us in

freedom

for

and

now

reached

the

point in her recovery and strength
when she
a

Carl M. Loeb,
has

Europe

Mr. Gordon H. Hensley

It is creating

peace.

MKW YORK 6, N. Y.

pleasure in announcing that

strong social and economic unit

the

11.1 IIKOADWAV

bad thing.

We take

greater

that

can

and should assume

have

the burdens

carried

largely

June 1,1959

(2518)

The Commercial and Financial Chronicle

Fiscal and
>

is no telling how cold or how hot for residential construction have
the international situation will be,> recorded new highs every month

Monetary Outlook

or.

facets of our encouraging
in providing the background against which

debt will amount to $24.3

capital spending, and

trend

for

over

and aV

greater increase in imports.
The
domestic price level

.^r-

has
been steady for about a year. With .
increasing demands for all types
f,
of goods and services, and with : t„
the
very
definite possibility of
further wage " increases later, oii *
this year, the groundwork is being f y
laid "for price - advances in4 late i *
1959 and in" 1960.
And there is p,.

up-

there may be some let down in
housing starts and in residential
construction outlays by the end of
the year, the demands for mortgage money in 1959 should def-

billion,; initely-be higher than in 1958. \

tne

from

recover

the effects of the recession,

Although

year.

economies

foreign

con-

Thursday, June 4, 1959

weekly bill ofr
V
ferings. Most of all of this debt.: Capital Spending Turn Around > always the overhanging possibil^^;]
will be restricted to the shorter- v. plant and
equipment expendi- ity that stock market price adU ^,
term securities—probably a large'
tures^—a late: turner in most busi- .* vances- may ;• spill over * into; the c r;
part of this through the commer- ness eycles— have at '
;'V&iT
long last commodity markets.
rial banks.

demands

Along with increasing
tor

short-term'

from :

business

would

suggest

turneji

funds

from

expendi-

These

around.;

declined

tures

This

billion" which

$37.0

background against ^
monetary policy ffTv?

the

future

borrowers,-*:this* in 1957

to $30.5 billion in 1958, a:* must be planned. Let us rememupward trend decline of- almost 20%. Outlays ber. that monetary policy is de- (£)
rates.-The. by v American business for plants- signed by mortals using powers^oC)
yields, on;, new, three
months andf. equipment have a 1 r ead
granted to them by-the electorate. ^
y
Treasury bills have
partiall^re- shown an increase and will in¬ Their .'task is to use these powersn^
flectedtins
movement;' these crease further this
so
as
to. assist in achieving the
year. The De- '
maximum economic potential (the,>-fi>^

short-term

F. R. B. Production
150 by year's end and further
gains in 1960.

Index rise to

exclusive

and, in review¬
monetary authorities, predicts

facing our
tighter credit and higher interest rates lie ahead with some
temporary stabilization as Treasury refundings and new issues
are brought to
the market.
Looking ahead into 1960, the
writer sees increasing: retail
sales, consumer credit, inventory
accumulation, bank loans, demand for mortgage money. Also
turn around in

construction

tracts awards have been in

in all probability, the
Treasury will be forced to borrow large amounts of new money,
—say about $4 to $6 billion oy
Dec. .31, 1959.
Refunding of Old-

future monetary policy must be planned. He outlines the hard
and soft money approaches to economic
growth

sup-;' since May 1958;

agricultural

Thus,

Bank economist examines principal

ing the problems

cost

Treasury Borrowing

Economist, The Bank of New York
Lecturer in Economics, College of the City of New York

economic recovery

the

ports.

By DR. VICTOR R. FARHI*

money

Gazing into the crystal ball is

upward and should reach

major occupation of these United; of
States.

ity

necessary in
The job

are

lives.
of

Estimates of future activ¬

economist

score

5v^Sn if-

further

gains in 1960. The prob¬
ability of a steel strike this July

our.

ti?
is

not

examine

change

this

upward

trend.

The national product of the coun¬

try,

trends, make

billion,

estimates of
the
future

About $35 billion will be
added to the national product this:

convey
these esti¬
to' de-

the

year.
^

;

would

cision-making

these

well

fiscal

the

circumstances,
to

examine

ment

how

and

monetary author¬
ities will act during the economic:

authorities so
that they may '
he
b etter

climb ahead.

perform
tasks.

their

Victor

Farhi

Some¬

times

the

clouded

business

and

economists

outlook

professional

even

are

used

the

dark.

At.

present, the outlook is clear.
Recent

statistics

that

Board Production

level of

146

Index at.

production of the United States
rose
in jet-like fashion until it
reached 147 last March.

*An

Forum

the

address
on

1959

the

recession, will be,

$68 billion. Expenditures,
because of the cold war,

high

price supports and other

controllable
estimated
the

expenditures,

The

mo¬

economy

still

by Dr. Farhi before the
Forecasts, School of Com¬
University,

limit

market

why

most

a«

the

busmess5..will continually increase/- here; to stay; let us relax and en- e ;;,
' :
its expenditures^, for; plant and «.joy; it. -

■

Treasury ,Mninmpnt:

1Q5Q

war

will

1960 will be the

Rising Inventories and

One
of

the

now

The

funds

reverse.

v'"

for

necessary

leads, to

contributing

causes

recession was a-'
by American ■business* to liquidate
its
inventories:
This'

John's

We maintain active

has*

presented

Originate mainly from .the depreRation allowances * and retained

accumulation at

President,, and .curtail* expend¬
as he
desires; further, there

competition is

annual rate of *-./ Foreign

about

ing

being lost to overseas competitors.
The camera, the steel
wire, the auto, textiles, the sewing

should

for

liquidation

after

This

accumulation

should
loans.

Common

R. S. Dickson & Company
"

INCORPORATED

Member Midwest Stock
Exchange

CHARLOTTE

Atlanta

/ NEW YORK

Columbia

Greenville

CHICAGO

Raleigh

result

machine, and

strike

can

inven-

Many

severe.

many

l°st.

bank

Last

year,,

the

Alexander

severe

balance

between the early y
under Thomas Jef¬
Federalists unde^y

ferson and

Hamilton.

(If

this

increasing.Many American jobs have been

Commercial

conflict at

Republicans

inroads made by foreign products,

the

of this country

other Ameri-

products have felt the

Jennings Bryan; wit?
the founding

of William
ness

sides

would

with

;

to,be

were

writer

aligned
school.)

find

hard

the

chosen^0.;;
himself

money,1;;,

r* PJ:
Payments showed a deficit of $3.4
The monetary authorities of the;J.F
increasing inventories. This is due biHion, resulting in a loss of $2.3
in part to the usual seasonal de- .billion .-of gold. The sharp rise in
country are also committed to the} y
cline in bank loans in the first imports and the continuation of latter school—that of hard moneyy,riT
quarter of the year, and to large foreign aid programs were among Federal/Reserve Governor Wil- LfV
cash
balances
of
corporations*.. *he main reasons for this loss of liam McChesney Martin has em-f1jf
Nevertheless, increasing demands gold. The American dollar is being phasized time and time again:
for bank loans from now to the weakened
in international mar- "The Federal Reserve System willy",
continue to the best of its ability '
end of 1959 and into 1960 are
1' 'X
very kets- "This year W€ can expect a
slight
increase
in
exports • as to contribute, so far as it can, to
likely.
loans have

Established 1919

steel
.

bank

;

the

and more

are

temporary

deadline.

markets have been lost and others

continue for; all

of this year and into
1960—except
the possibility of

tories

•

tweeri the silverites and the. gold F"
standard proponents in the time

becom-

$4 billion, or $1 billion for
the quarter. Accumulation of in-

itures

Common

„

•

■

Public Service of North Carolina

;

Common

inflation,/inflation
and ) must \

controlled

desire to liquidate inventoriesi resuited in a net reduction of. $4.7

Piedmont Natural Gas Co.

;

Pr9f te of business. The recent
nomic growth must; be achieved ip
dramatic revival of profits of corwithin a stable price
level.'y
-Porations indicates that corpora^
-These thoughts are not new in W
tions have the financial means to
expenditures at $77.0 billion. This
billion of inventories in calendar iexpand;
this revival of,, profits American financial history. There ■
is too good to be. true; it is
pos¬
1958.. Inventory
sible the 1960 budget will show a
liquidation; has further; stimulates .expenditures. / are many examples of past corl- - .L.
between
the hard money
ceased;
accumulation
ofinven- Additioqal funds will be sought flicts
small deficit of about $2 to
$3
and soft, money schools... For ex-J ,11
billion.
It
is doubtful whether tories has begun. The first quarter,in the fquity,cand the debt marof 1959 should record
ample, witness the vconflict
the
inventory.^?)8*
;
•
v
•
Congress will support the

Eisenhower

trading markets in:

collapse; inflation leads
to decreased/savings and-thus re--.f»?
duced investments. Maximum ecolead

desire

North Carolina Natural Gas

;
,

cannot,

Kv-V*'- and equipment expenditures will

past

j.-*

is :: false

plant

leads to

continuously rising priced level
>, stimulation, .yInflation

;

Bank Loans y

"says, stimula-f y-

other school

/-The

tion of the economy that

ventories

St.

merce,

•

its"new

un¬

billion.
For
1960,: President

year

sur- •

govern- ,Vey.

ritfes t0 thG Sh°rter-term

a r e

about $81

fiscal

from

and toward

Jiousing

? •
reasons

other

will

the

February, 1957n balanced budget. Federal receipts
are estimated at $77.1
billion, and

declined 20 points to 126 in
April,
1958.
From this low level, total

mentum

around

farm

indicate

the 1957-1958 recession is a mat¬
ter of history.
The Federal Re-,
serve

The Federal budget for the year
ending June 30, 1959 will result
in a deficit of around $13 billion.
Budget receipts, badly curtailed
because

away

securities

„

equipped to.

means i-'i'i

;

partment of Commerce-SEC

potential

growth that can be sustained; it ;
v
means.ihe-greatest; good for the >'5;greatest number for/;the /longest
~
possible period.-5,
v ? yi-

How to Achieve Economic Growth $■,>
already • shows a higher re-f
com-.
sult.'
American" industry in 1959 ; U At present, there are two schools k
mon stocks and other debt
■
instru^..;wid' be'cmotlvated by a desire to of thought- as to how to achieve
ments.
Public doubts as
to^uie modernize its plant so. as to be iii economic: growth. The one school r
future value of the dollar, a yield
says,"let us stimulate the economy
>
a better positron to meet competiceiling of 4/4% on
goyefnment;.tiohbYoUeriiig:new products and constantly, so asjto achieve the
maxijnum rate of growth regard^ rv><
?1 1 a Possible
decreasing unit labor costs. As«
the Federal
Governinent^nptwto.. business improves, and as output less of what happens to the price -r/;
compete for funds ttiat/ may;>be,
approaches
capacity, ' American- level. ./In other words, inflation is

cidedly moved

same

:'cf'■'

Under

Investor preference has de-.

economic

imum

rities

of about $465

rate

will

course.

end

mates

now

^958, to 3.10%.

April.

consequent over-production
of steel at present will interrupt

current

of Commerce-Securities
all(j Exchange Commission survey good life) for the economy. Ma

-7° in

already^ increased';partment

\ '
indicates a level of $31.8 billion.
possible—but highly- un-^-for this year. It is highly possible
likely—that the greater part">;of that this estimate may be too low;
the new Treasury, debt will.be, fi-'
the - latest McGraw-Hill survey,
nanced through longer-term secu-. taken about a month after the De-

and

business

planning

level

end, and

150 by year

over

far failed to react to

'■}(

Incomes

Richmond

and.; expenditures,
suffered

consumers

Direct Wire to All Offices

past recession.

little

the

-yi-

The year 1959 has

already
to

successive advances in

see

We Maintain Markets In

should continue

and

seen

con-

DELAWARE VALLEY U.S.A. COMMON STOCKS

This should make for

retail sales and for
mands

Complete Investment, Service
UNDERWRITERS

•

BROKERS > OEAUftS

•

for

latter, of

DISTRIBUTORS

dent

Passenger

than

mainly depend
of

car

hardly exuberant,

credit/-; The

consumer

course, is
the level

sales.

inccreasing
increasing de¬

year

cession

has

much better

taken

Perhaps the American
economy is less dependent on;the

Dean Witter \
8c CO.
i

and other

Private teased radiotelegraph

Exchange

•

Chicago Board of Trade

smaller

about

-Credit
'

real revival in auto
needs

Ritter Finance

William H. Rorer,

Keystone Portland Cement

safes.

ANGELES

38 Offices

•

NEW YORK

Serving Investors

•

CHICAGO

■

I J

Standard Pressed Steel Co.
•

Wilbur Chocolate Co.

; i \6

1
;

o-i

\ll

;

Philadelphia Bank Stocks
1

LOS

Inc. J

STROUD

Cr{

•

jiC.v.

Co., Inc. "B"

Strawbridge & Clothier

consumers ■ will

■

Taylor Fibre Co.

71* 't;

i^yri ri:

■

j.u .r

circuit to Honolulu

SAN FRANCISCO

Inc.

Moore Products Co.

increase.

leading.commodity exchanges

Purolator Products,

Corporation '

Corp.,,,.'

cars,

Hamilton Paper Co.

promised to the American public
by the end of this year, may bring

Members
New York Stock Exchange • Pacific Coast Stock
Exchange
Midwest Stock Exchange • American Stock
Exchange
|
Honolulu Stock

\Jf

;

Phila. Suburban Water Co.

National Aeronautical

■

industry than formerly^ The

introduction

Co., Inc.

Giant Portland Cement Co.

auto sales.

auto

Penn Fruit

Co.,;

Eastern Lime

place^
without the stimulus of booming,*,

Ilii

-orJT

.'Cement

ago.

levels

Here Is A Partial List:

Allentown Portland

automobile

sales, though

are

til

■

It is very gratifying that the recovery from re¬
a

;

ti-qy.i

incomes and expenditures.

sumer

Construction and Mortgage '*""
Outlook
The outlook for residential

struction,
-mortgage

and1 the
money

demand

is good.

123 So. Broad St.,
120

con-

for

Outlays

COMPANY,

INCORPORATED

Phila. 9

•

PEnnypacker 5-7330

Broadway, New York 5
PITTSBURGH

•

WOrth 4-8400

•

ALLENTOWN

•

LANCASTER

1:!' U 'C
-

•

"t.

Volume

189

The Commercial and Financial Chronicle

Number 5852

(2519)
r

continuing

prosperity

and

eco¬

Incuranro Rnmnanu

nomic growth without inflation."
Note the words "to the best of

IVIblllClllCe

its

year' according to the institute of just over $5,000,000,000, or nearly from a
Life Insurance. Total assets held $1,000,000,000 more than a year ings to

IDVGSIIHGniS III

ability";

■

must all be aware
that the powers of the monetary
authorities ! are
solely .those
we

******

$108,945,000 000.

000,000 more than on Jan. 1.
Corporate securities bought

ago.

than

1,350 U. S.
life companies on March 31 were
more

U. S. Government securities
for

counted

the

acquisitions

ago, bringing hold¬
$37,486,000,000 or $389,-

year

ac¬

largest block of
the quarter, $1,-

737,000,000,

,3***

furities

orcoavmenfs

In addi-r

great.

other;*effects,

IIIHIIIIIIIIIIIIIII

price, in?

also lead to the danger of i

creases

greater

foreign competition and
the possible loss of American jobs.
(2) The stock market is booming.
Does this
chosis

has

the

that

mean

public

can

Ameri¬

inflation

psy¬

$10,000,000

and

they are trying to
hedge against expected price in¬
-

creases?

If se, does the American

public-really expect a constantly
rising price level? Will this carry

at Memphis, Tennessee

into other markets?

over

(3) The
Treasury's demand for funds mu.t
be

accommodated.

debt

ury

mercial

the

Treas¬

purchased

by com¬
excessive.. bank

banks,

5%,:3V4%, 3.70% and 1% Bonds

credit may be created.

(4) Tight¬
ening ..of monetary controls can¬
not be fully effective as
long a>
corporations have a high degree
of liquidity.
Once this liquidity
is squeezed,' then monetary con¬
trols

can

what point
The

effective.

Dated

July 1/ 1959.' Due

Interest Exempt

may be when com¬
bank loans start to in¬

(5) How much time lag
is there between the imposition of

monetary

bank

from Federal Income Taxes under Existing Statutes and Decisions

opinion,

our

boom

credit.

origi¬

amounts,

authorities, entails flexible inter¬
est rates, and the curtailment of
excessive bank credit. Such

about

bring

repeated

1960

1961

5 ii.-

1962'

attacks

upon

the Federal Reserve System.
hard money
advocates
and

Sees

are

advocates

Tighter

the

policies

The

1963

2.50

1969

3.15

' 2.65

3.10%

1970

3.25'

^971

2.75

2.85

1973-74

31/2

3.35

3 V2

the

commodate

the

of their

needs

ability.

tion

will

with

monetary

The credit situa¬

3.60
3.65

1984-85

3.70

1986-87

3.70
1

100

3.75

4.20

added)

are offered, subject to
prior sale before or after appearance of this advertisement,
delivery when, as and if issued and received by us and subject to the approval of
...I legality by Messrs. Wood, King & Dawson, Attorneys, New York City.

for

will

primarily

of the dis¬
market opera¬

use

count

rate, open
tions and moral suasion.

The First National City

Further

-v

increases in the discount rate will
take

3.70
3.70

The above Bonds

get

authorities

1982

1988-89
to

100

3.55,

best

increasingly tight
temporary stabilization
as Treasury refundings
and new
issues are brought to the market.
make

5' v-v' 3.05

some

The

the

3.70

'•iiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiimiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiii^

business

government—to

3V2

1981

Price

3.45%

1983

3.40

(Accrued interest

to restrict the supply of
ci'edit, allowing just enough to ac¬

3 V2 %

1979-80

3.35

1975-76

1967

Coupons

1977-78

3.30

2.95

continue

and

3 V2

*1972

3.00

1965

will

Maturities

1959

authorities

Yields

to Yield

Coupons

1968

price

-Prices

Maturities

2.30%

1966

Ahead

Credit

monetary

evident.

The

will

maturities, coupons and yields or

to Yield

Coupons

1964

soft..money
battling.

The

Prices

continue

will

$335,000 due each October 1, 1960-79, inclusive
$330,000 due each October 1, 1980-89, inclusive

Maturities

condition,

and

pol¬
has

in New York State

now

employed by the Federal Reserve

brought

Legal Investments for Savings Banks and Trust Funds

siiiitHiiiiiiiHiiiiiiimiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiuiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiriiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiifiiiiiiii.

Flexible

policy, the policy

icy,, during boom

<■"\,
if

nates—it is wise to avoid excessive
creation

to principal only.

conditions—or

before, the

semi-annually thereafter)

New York, N. Y.

Exempt from Taxation in the State of Tennessee

Eligible, in

control and its effect?

possible

and

does this take: place?

During boom

1960,

at Chemical Corn Exchange Bank,

Coupon Bonds in denomination of $1,000, registrable

crease.

shown below. Principal and interest (April 1,

payable in Memphis, Tennessee,

answer

mercial

place,

probably

than

occurred in the recovery

Bank

The Chase Manhattan Bank

Harris Trust and Savings Bank i=j
r

Equitable Securities Corporation

after the

Chemical Corn Exchange Bank

of New York

•=?

R. W. Pressprich & Co.

J. C. Bradford & Co. =|

Union Planters National Bank

C. i. Devine & Co.

A. G. Becker & Co. M

1953-1954 recession.
In

summation,

The First National Bank

economic

the

outlook
year

for

the

remainder of

is promising.

1959 is

the

year

into

1060s, when the demands of
in

the

supply.

than

the

demands

Interest

increase

rates,

Robert

and

increase;-in

upward
increase

pressure

gresses.

the

year

Julien Collins & Company

Wachovia Bank & Trust Company

MercantiJe-Safe Deposit

Robert W. Baird & Co.

and Trust Company

Chicago

m
=

Folger, Nolan, Fleming—W. B. Hibbs & Co., Inc. H

Clark, Landstreet & Kirkpatrick, Inc.

Leftwich & Ross

J. M. Dain & Co.

Channer Securities Company

prices

H McDonnell

I Co.

Incorporated

pro¬

Sternberger & Company
*

]

3 Blewer, Glynn & Co.

First U. S. Corporation

Dreyfus & Co.

H. Y. Sattley & Co., Inc. M
==:

A. Webster Dougherty & Co.

Fahey, Clark & Co.

A. G. Edwards & Sons M

restricting the growth

in the supply of credit, to restrain

these inflationary pressures.
doubtful

evident.

The monetary authorities

Will try, by

Third National Bank

Winthrop & Co.

City National Bank & Trust Company

——

of Western New York

Andrews & Wells, Inc. M

Baxter & Company

short
=

Will

Incorporated

Fahnestock & Co.

The Marine Trust Company M

Incorporated

term rates has already taken place,

The

Incorporated

Roosevelt & Cross

.a.

Bacon, Whipple & Co.

short, will increase; most of

are

Dean Witter & Co.

in Nashville

the

but further increases

;

Corporation

for

both long

Treasury

Wood, Struthers & Co.

some

all types of credit in 1959 will be

greater

Memphis, Tenn.

incorporated

sector of tne economy burst forth.

The increase

Seattle-First National Bank

;

Oregon

American Securities

time in the

some

Braun, Bosworth & Co.;

of recovery, not a boom year. The
expectation of a real boom must

be delayed

whether

the

authorities will fully

monetary

they will try—to the best of their
ability—with the limited

Townsend, Dabney & Tyson

means

their command.

Barret, Fitch, North & Co.

First National Bank of Mobile

Incorporated

If is

succeed; but

the quarter totaled
$1,296,000,000,
down about 11% from last year,

but holdings rose
$691,000,000 to
nearly double those
year ago.
Holdings of such $47,317,000,000.
securities rose $24,000,000 in the
refundinas
life insurance policy assets in the
Joins Bache & Co. *
three months to $7,229,000,000.
v
first auarter nf 1959 totalpH HI. ^
'
r<^ll - Over of shorttotaled $1,terih securities and sale of older
Mortgage - acquisitions
in
the
COLUMBUS, Ohio—SigmundJ.
526,000,000,u some
$124,000,000 investments, / total new
invest- fifst three months by the life com¬ Munster is now affiliated, with
more; than in the like period Tast^mehts in the first quarter were panies were $1,401,000,000, up 17% Bache & Co., 30 East Broad St.

problems facing the mone¬
tary (authorities in 1959 and in
1960 are large: (1) The possibility
of
further
price increases this
and

of the

ers

New- capital
ttmds ^becoming
available for the economy from

^ The

tion

for the benefit of the policyhold-

■

_._i_

First Quarter of 1959

granted to them by the Congress.
There are many, many areas of
the economy beyond the control
of the monetary authorities.»
-

year

uumpanj

Ryan, Sutherland & Company
>

June

1959

Anderson & Strudwick

Kroeze, McLarty and Company

The Commercial and
3

Financial Chronicle

1959

Thursday, June 4,

(2520)
Telephone

American

Investment

Deafer

Recommendations & Literature
will be pleated
the following literature:

it is understood that the firms mentioned
to

tend interested parties

Association
outing
at the Overbrook Country Club.
June 18, 1959 (Minneapolis- St. ;
Investment Traders

Co.—Memorandum—Good-

& Telegraph

Broadway, New York 6, N. Y.
Avien Inc.—Memorandum—George, O'Neill & Co., 30 Broad
•Street, New York 4, N. Y. ■
K .K".
-\r~vr-;
Blaw Knox Co.—Memorandum—Shields & Company, 44 Wall
Street, New York 5, N. Y.
Braniff Airways, Inc.—Review—John H. Lewis & Co., 63 Wall
P Street, New York 5, N.
K'
\':;v-KK;/.K
Broadway Hale Stores, Inc. — Memorandum — Dean Witter &
Co., 45 Montgomery Street, San Francisco 6, Calif.

body & Co., 115

Automotive -JfadustryK-Analysis of mid-year
Burnham View

— Burnham and
York 5, N. Y. Also avail-

Monthly Investment letter

—

Company, 15 Broad Street, New
able in current Foreign Letter.

•

outlook—Hirsch

19,1959 (Bryn Mawr, Pa.)
Philadelphia Securities Association annual outing at the Over-brook Golf Club, Radnor Town-

Casualty Insurance

Stocks—1958 earnings comparison

ments, Inc. '

5, N. Y.
Fire & Casualty Stocks—Comparative figures—Robert H. Huff
& Co., 210 West Seventh Street, Los Angeles 14, Calif.
Foreign Exchange Quotations—Current quotations of currencies
—Laird, Bissell & Meeds, 120 Broadway, New York

Vvr.:?/

throughout the world—Manufacturers Trust
International Banking Department, 55 Broad
Street, New York 15, N. Y.

New York

Beacon"—Nomura
•

available,is

Expenditures

Japan

1959

for

brief

and

analyses

Cement Co; and

Japanese Stocks—Current Information

—

Yamaichi Securities

on Aviation — Article in June issue of "The Ex¬
change"—The Exchange Magazine, 11 Wall Street, New
.York 5, N. Y.—20c per copy, $1.50 per year. I Also vin the
; same issue are lists of companies paying stock dividends of

;

Street, New York 5, N. Y.
,
"•.
?
? v June 27, 1959
(Chicago, 111.)
Co.—Memorandum—^Woodcock, Hess, Moyer & Co.,
"
j; " Chicago Traders, Association
123 South Broad Street, Philadelphia 9, Pa. Also available are
•;'K -summer outing at the Woodmemoranda on Provident Tradesmens Bank & Trust Co. and
ridge Country Club.K-/> :YY YK . ■
"

cago

Baker

Co.

Incorporated,

150

—

Tabulation

—

~■ ]■],,I,

•

•;

38,

Pittsburgh

J.:";

pany;

are

data

American

Smelting

Refining Com¬

Chicago, Milwaukee, St. Paul & Pacific Railroad; Elec¬

tric Storage Battery

Company; Ex-Cell-O Corporation, and

American
•

pany,

K minal Annex, Los Angeles 54, Calif.
Tenney Engineering Inc.— Analysis—Edwards

Greetings Corporation—Analysis—Milwaukee Com-

East

207

available is

MichiganJ Street, Milwaukee 2, Wis.

Also

Club.

Hi-T
Field
.Country

day at Queen City Club; field
day. Friday, Kenwood Country
Cfub.

Sept. 23-25, 1959

(Milwaukee,

Wis.)

■

Association of Bank
37th annual convention. ;

National
Women

& Hanly, 100

the Waionda
.KK..Kr

2097, Ter-

Sept. 28-29, 1959 (Toronto,
K
Canada) -•
v - ••:•:. *:
" 'H'tll
Association of Stock Exchange

meet¬

First Board of Governors

A. Hogle & Co., 40

Texas Gulf Sulphur Co.—Memorandum—J.

;;

Sept. 17-18,1959 (Cincinnati, Ohio)
*
Municipal Bond Dealers Group
•of Cincinnati annual muting —
cocktail and dinner party Thurs-

Street, Hempstead, N. Y.

North Franklin

report on Hein-Werner Corporation.

St.

K'V

19-20, 1959 (Des Moines,

•Day

Investment

Department, Security First National Bank, Box

R. IL Macy & Company, Inc.

Kiowa Investment Bankers

Corporation—Report—First Invest- IK
ment Savings Corporation, Box 688, Birmingham, Ala.
Royal Dutch/Shell Group
Bulletin—Bache & Co., 36 Wall"
Street, New York 5, N. Y.
Smith Douglass Company, Inc. — Report—Harris, Upham & Co.,
.120 Broadway, New York 5, N. Y.
Southern California Business Conditions — Report—Research K;

Also in the same

;

Iowa)

Also in the same issue are discussions of Wallace & K
Tiernan Incorporated, Standard Oil Company of Kentucky " *
aild 60-stock income plus growth list.
';

Reinsurance

? Algoma Steel Corporation, Ltd.—Review—Burns Bros. & Com¬
pany Limited, 44 King Street,West, Toronto, Ont., Canada.
Allied Chemical Corporation — Data—Oppenheimer, Neu &
circular

.■
: "
Corporation—Analysis—Laird, Bissell & Meeds,

Aug.

per year.

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

Clair,. Mich.

Street, Minneapolis 2, K

Exchange Building, New York 6, N. Y.—15 cents per copy,

Vending—Analysis—A. M. Kidder & Co., Inc., 1 Wall
Street, New York 5, N. Y. Also in the same circular are brief
analyses of Rheem Manufacturing and American Aggre¬
v

Clair Inn and Country -Club,

New York 5, N. Y.
'
Lake Erie — Discussion in the June issue of
Investor"—American Investors, American Stock

"American

9-21, 1959
ya>)

120 Broadway,

ABC

gates.

fray & Hopwood, 115 South Seventh
Minn.
'
:

Perkin Elmer

New York.
vr'v,'.:';

Inc.—Analysis—G. A. Saxton

Co.', Inc., 52 Wall Street, New York 5, N. Y. Also available "
are compai'ative figures on Public Utility
Common Stocks.
M. F. Patterson Dental Supply Co.—Memorandum—Piper, Jaf&.

Amott,

Broadway, New York

Moore—Memorandum—Green, Ellis

3, 111.
Averages

(Charlottesville,
r;-;:
'K'-'
? School of Consumer Banking, "
"University of Virginia.
Aug. 14-15, 1959 (Detroit, Mich.) ?
Basis Club summer outing at St.;
■

Broadway, New York 6,, N. Y.

; Anderson, 61

Orange and Rockland Utilities,

the State of Washington for 1958—

Bond and Stock

Street, New York 5, N. Y.

Manning, Maxwell

Estate

Wall

Aug.

Hammill & Co.,

Liquefied Petroleum Gas—Report—Shearson,

Survey—John Nuveen & Co., 135 South La Salle Street, Chi¬
Real

Vanadium Alloys Steel Co.

performance over a 20-year periodBureau, Inc., 46 Front Street, New York

Public Utility Districts in

Link Belt

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

kk4, N. y;

•

Comparisons—Victor G. Paradise, Paradise Securities Com¬
pany, 9477 Brighton Way, Beverly Hills, Calif.—$2 per copy,
Monetary System: A Problem of Timing—Review—Bank of
Nova Scotia, Toronto, Canada.
Overrthe-Counter Index—Folder showing an up-to-date com¬

market

Weir & Company Ltd., 50 King Street, West, Toronto, Ont., K- June 26, 1959 {Philadelphia, Pa.)
0:
Canada.
'
K".
'./K "
Investment Association of Phil- ;
Company—Analysis—Cruttenden, Podesta & Co., 209 ?
; -adelphiaSp r i ng
^Outing at
>
South La Salle Street, Chicago 4, 111.
:
•
K
-Whitford Country 'Club, WhitLanolin Plus, Inc. — Memorandum — Candee & Co., 44 Wall IK Kford, Pa. Ky ":K 7
-•

Kirsch

listed stocks selling for less than 12
times earnings and more than 25 times earnings, large pro¬
portionate dividend payers, etc.
Life Insurance Stocks: 1958 Operating Results and Five-Year

and

than 5% "in 1358,

National Quotation

(New York, N. Y.)

26, 1959

June

i yield

try Club;

•

Jet Impact

■

K<K Columbus Stock & Bond Club
outing -at the Colutfibus Coun-

Liberty Street, New

—New York.

-,:YKKyY

Gestetner,

Ill Broadway, New York 7,

Company of New York, Inc.,

1959 (Columbus, Ohio)

*K: Municipal Bond Women's Club
Ltd.—Review—Alfred L. Vanden Broeck & Co., 55
annual outing at Seawnne HarYork 5, N. Y.
;:••;
1;; bor Club, Hewlett, N.-Y. KyK/:v
Ilowe Sound Company—Analysis—Reynolds & Co., 120 Broadv- June 26, 1959 (New York, N. Y.)
Also available are reports on Air
way, New York 5, N. Y.
Products, Inc., Diamond Gardner Corporation, Riohfield
New York Society of Security
Corp. and a list of the favorite 50 of monthly investment plan v?
Analysts. Inc. annual outing at
buyers.
'
Y?
:
Westchester Country Club, Rye,
;K:Kv
International Utilities Corporation—Analysis—McLeod, Young,, KK%,N. Y.

Flour Mills Co., Iwaki
of the Steel Industry.

survey

ing, Wianno Club.

•

June 26,

Natural Gas.

Mitsubishi Heavy Industries, Nippon

(Hyannls, Mass.)
Association
Atlantic States Sectional meet-

Letter
—Hayden, Stone & Co., 25 Broad Street, New York 4, N. Y.
Also in the same issue are data on Swift & Co., Wurlitzer,
Kelscy-IIayes, Peoples Gas Light &• Coke and • American

in postwar years—

the

Consumers Bankers

Fla.

Co., Ltd., 61 Broadway, New York 6, N. Y. Also
a review of the outlook for Plant and Equipment

Securities

Home

an¬

June 25-27, 1953

pany, Inc., 605 Lincoln Road, Miami Beach 39,
Garret Corp.—Data in June issue of Monthly Investment

Japanese Stock Market— Study of changes
In current issue of "Nomura's Investors

Club; of Pittsburgh
nual
Spring
Outing
at
KK Longue Vue Club.

"" ;
& Com¬

4, N. Y.
1
* ■%,*[
•• - •
-'
Insurance Co.—Memorandum—A twill

Florida

Company,

(Pittsburgh, Pa.) j

19, 1959

Bond

Company—Report—Cromer Brokerage Com¬
pany, Inc., 39 Exchange Place, Salt Lake City 11, Utah.
Elco Corporation—Analysis—S. D. Fuller & Co., 26 Broadway,
-

outing at the TuxTuxedo Park, N. Y.r

edo Club,

June

East Utah Mining

of 140 countries

•

York annual

Bernhard &

available~is

•

'K'

19, 1959 (New York City)
'
Investment Association of New

June

South Beverly Drive, Beverly Hills, Calif. Also
a memorandum
on Precision Radiation Istru-

170

Co.,

/ New York 5, N. Y.
Fire

KK ship.

Conklin .Organiza¬

report on Eastern Industries.
Diketan Laboratories, Inc.—Memorandum—R. E.

Broad Street,

companies—The First Boston Corporation, 15

■

York 5, N. Y. Also available is a

tion, 120 Broadway, New
banks and five holding

Commercial Bank Stocks—Data on 47
v

Incorporated—Bulletin—De Witt

June

ing Co.
Diebold

Cities

York—Analysis—Winslow,
Cohu & Stetson, 26 Broadway, New York 4, N. Y.
:
Cleveland Cliffs Iron Co.—Memorandum—A. G. Becker & Co.,
Incorporated, 120 South La Salle Street, Chicago 3, 111. Also
available is a memorandum on National Tile & Manufactur¬

N.Y.

&Co.,25 Bread Street, New York 4,

Bond CLub 38th
annual- picnic and
outing at
I K White Bear Yacht Cluh, White
I: J
Bear Lake, Minn, (preceded by
a cocktail party June 17 at the
."K Nicollet Hotel, Minneapolis).
Twin

•

Paul, Minn.)

of New

Citizens Casualty Company

Philadelphia Summer

ing at the Royal York

Hotel.

Wall

Street, New York 5, N. Y.
Oil Products—Analysis—Halle & Stieglitz, 52

Universal

Street, New York 5, N. Y.
Corporation

Vanadium

Firm

Oct.

Wall
:

America—Report—Schweickart

Consumers Bankers Association
39th annual convention at the

Co., 29 Broadway, New York 6, N. Y.
Wagner Electric Corp.—Memorandum—Reinholdt & Gardner,
400 Locust Street, St. Louis 2, Mo.
Walworth Co.—Memorandum—R. W. Pressprieh & Co., 48 Wall

Trading Markets in-

Warwick Hotel.

Oct. 22, 1959

Flamingo

(b) Natural Gas Companies

Transmission, Production

Investment

Field

June 5,

Club

field

Banff

Association

Chicago

annual

Troster, Singer & Co.

June 5, 1959 (New York City)
Bond Club of New York annual
field

Members New I orh Security Dealers Association

Country
•

Trinity Place, New York 6, N. Y.

day at the Sleepy Hollow

N. Y.

Club,

•

June 5-7, 1959

Teletype NY 376; 377; 378

Scarborough,

(San Francisco,

Calif.)
San Francisco

Association

Security Traders
the

Santa

Rosa

ciation

Municipal

Bond

Summer

chester

Club

4, 1959 (Bal Harbour,

Investment Bankers

the

Association

Convention
Americana Hotel.

Annual

Apri, 6.7.8
Texas

(New York City)

June 12, 1959

York

outing
Club.

summer

Asso¬
Convention of

Club.

Fja ^

Springs Hotel.

Salem Country

(Boca Raton, Fla.)

Annual

Noy# 29_Dec.

annual convention at

(Boston, Mass.)
Boston Securities Traders Asso-

day

1959

National Security Traders
the Boca Raton

1959 (Alberta, Canada)

Investment Dealers'
of Canada

at the
Knollwood
Club, Lake Forest, Illinois."

ciation

Tune 8-11,

1959 (Chicago, 111.)

Bond

HAnover 2-2400

Rosa,

June 11, 1959

& Distribution

-74

Santa

Motel,

Calif.

EVENTS

annual fall

meeting.
Nov. 2-5

COMING

(Cincinnati, Ohio)

Group of Investment

Ohio

Bankers Association

Street, New York 5, N. Y.

(a) Operating Utilities

(Philadelphia,

14-17, 1959

Pa.)

the

1960 (Dallas, Tex.)

Group

Investment
America

Bankers Association of

of New

25th

outing at West¬

annual

Sheraton

meeting

Dallas.-

the

.....

Country Club,Rye,N.Y.

With Grant, Fontaine

June 12, 1959 (New York City)
Corporation Bond Traders Club
of New York annual outing at
the Nassau Country Club, Glen
Cove, L. I., N. Y.
June 12, 1959

(Philadelphia, Pa.)

(Special to The Financial

Chronicle)

OAKLAND, Cal.—Guy L. Bowe
is

now

affiliated with Grant, Fon-

taine & Co., 360

Twenty-first St.;

Volume

189

Number

5852

The Commercial and Financial Chronicle

(2521)

the dividend

Striking Features
By DR. IRA U. COBLEIGH

Enterprise Economist and Author of "How

Summarizing
'

While

of those factors

some

Get Rich Buying Stocks.'

steel

equities for

favoring consideration
June investment.

tional

t i
e

n.: Price-

ratios for
still

are

conservative

Reserves

and

fabulous.

The

quite

coal

Universal

for

counts

selec¬

tive

security
buyer today, a
combing over

Ira

commons

neglected:
valued

Cobleigh

makes X

unearth

may

and

possibly

issues.

all

some

under¬

events

that

theory behind today's piece
—that steels are essentially behind
the

market.

How, in logic,

can you account
for the lack of bounce in the steel

list

recent

possibility

strike?

there

did

steels

weeks?

1956

and

are

about

12%

total

production.

New York Stock Exchange, which

•

is the

ore

There
are
53,756,072 common
shares of U. S. Steel listed on the

leading

steel

Atlas

for

and

subsidiary,
Cement Co., ac¬

domestic cement

has

cement

orthodox, and
suggest
that,
the

best

been

and

times);

the

ter

is held

most

operating

and, if all goes well, should reach
new heights of earning power this
year. Republic ranks third in pro¬

metal,

been

carbon

steel

the-

efficient

rates.

Analysts Society

and

Co., Inc. of New York
hasf been elected

Chicago,

President of

can

the New York

bet¬

Society of Se¬
curity
Ana¬

units
or

long as
major industrial
continue to view

our

can

lysts,
tion's

steel

stock
list
favorably,
when.you can buy a
dollar, in earning power for a ten
spot; ;
:
" V'
*"' 1
\

moving

the

1954

strikes

were

decline

and

somewhat

common

marketable

ties.

of the most

one

of marketable

securi¬

Even last year Steel common

earned

$5.13.
of

net

This

year

per

between

$7.75 and
$8 is possible, plus a stock split.
(The stock was split 2-for-l in
1955, and 3-for-l in 1949.). The
present $3 cash dividend is well
covered and may be improved. A
of X at 95, about 12
times 1959 earnings, could scarce¬
ly be labeled foolhardy.
purchase

Among the lesser steels
able

case

City Steel Company.

It showed

remarkable result last year
for the first six months it

Mr.

Herzfeld

the'

Another

come

oper¬

its

steels

with

because of the vast upgrading in

lehem is also

office

City, and

Broad

St.,
branch of¬

and

McLouth for

and

Philadelphia.

Sacken

had

viously

year

nies

of the dip, most steel compa¬
made money on operations

running

capacity,
of

low

to 55%

served

Treasurer

and

its

Star

phenomenon unheard

before the

And research

war.

further im¬

Bethlehem earned $2.91 per

which
ular

than covered the reg¬

positions.

contributor

financial

merous

and

proving efficiency. Not only quali¬
tatively, but quantitively has the
steel

into a new
magnitude. For instance,
Jan.
1, 1947 installed ingot
industry moved

order of
on

91.2 million tons.
Eleven years later, however, on
Jan. 1, 1958 installed capacity had
capacity

was

periodicals, he also is

increased

over

54%

140.7 mil¬

r»

St.

Foster is President and Treasurer

the

firm, and Thomas E.
of the Mu¬
nicipal Bond Department.
new

Riordan

manager

sor.

Spear, Leeds Partner

Merrill Turben Office

Leeds & Kellogg, 111
MIDDLETOWN, Ohio—Merrill Broadway, New York City, mem¬
Turben & Co., Inc. has opened a
bers of the New York Stock Ex¬
branch office in the Savings &
on
June 4 will admit
Loan Building under the manage¬ change,
Lewis B. King to partnership.
ment of R. Dale Nash.
.

Spear,

circumstances to be construed as an offer to sell or as a solicitation
of these securities. The offering is made only by the Prospectus.
...
,

any

May 29,1959

NEW ISSUE

Out of this capacity we
produced but 85 million tons in
1958. We'll probably hit 112 mil¬
lion this year with a correspond¬

lion tons.

ing

the

strike,
ences

eve

probable

and despite nasty infer¬
by Mr. McDonald of the

Union,

£teel workers

/companies

steel

that

greedy and heart¬
less profiteers, let us remember
that steelworkers in the United
States are the highest paid in the
are

/world; that steel wages are among
in all American major
and
that
the
basic

the highest

industries;

(without reference
>to
any
possible increase which
may be achieved by present bar¬
gaining) is about four times the
<rate
now
being paid in West
Germany.
And German steel is
,now one of our toughest competi¬
tors in world markets.
-hourly

wage

With this

topical reference to the

.economic pleasantries of the bar¬

gaining table, let us now get down
, to
our stint for today, namely, a
I brisk discussion of the values in¬
in

herent

certain

steel shares at

start

States

Steel.

leads

the

size

163

full

These bonds now sell
and, assuming their

(28%

with

off

United

This great company
not only in

industry

the

country's

steel

-producing capacity) but in opera¬
tional
efficiency.
For example,

Southern Electric

Generating Company

conversion, company debt will
of capitalization. Mat¬

First

Mortgage Bonds, 5^4% Series due 1992
Due

Dated June 1, 1959

June 1, 1992

be but 8%

ter

fact, further plant expan¬
by sale of bonds

if financed

might
benefit
shareholders
by
creating greater leverage. As it

Price

at around 521,2
appears to be a sturdy and by no
means
overpriced equity. Divi¬
dends have been paid since 1939
and the stock was split 3-for-l in
is,

the

hem has

class, cash and

ing earning
by

has

around

been

last

share
and

year

the old

Merrill

Inland earned
the common
would expect

Blyth 8C Co., Inc.

Lynch, Pierce, Fenner 8C Smith

centering

Incorporated

American Securities

Corporation

Francis I. duPont 8C Co.

area

this year

and

It now sells
would not be

Hornblower & Weeks

Laurence M. Marks 8i Co.

Paine, Webber, Jackson & Curtis

New York Hanseatic

Corporation
-

•

Shearson, Hammill & Co.
.• 1

surprising if the issue were put
on
a
$2 regular dividend basis
time

some

would

this

appear.to

last

year.

McDonnell & Co.
a

rough time

There were labor

problems and managerial diffi¬
culties accompanied by price con¬
cessions
in
many
sectors.
Per
share earnings

Goodbody & Co.

Courts 8C Co.

Earnings
justify such a

year.

National Steel had
of it

Hallgarten & Co.

The stock was

stock.

split 3-for-l recently.
around

may

results in the S10.75
for

charac¬

Chicago, and by low cost

operations.
per

brokers

ascend¬

strategic posi¬

fine

tion in the Middle West

plant
$8.32

power.

Steel

Inland

terized

obtained in any Slate in which this announce¬
only such of the undersigned or other dealers
lawfully offer these securities in such State.

The Prospectus may be
ment is circulated from

1957. Bethle¬

4-for-l

and

1947

101.579% and Accrued Interest

common

possibility.

this time.
We'll

share.

per

sion

advance in net earnings.

$25,000,000

around

dipped to $4.80 and

director

R. J. Foster Co.

under the direction of Marvin Ki-

This announcement is under

3V4% debentures due 1980, and
convertible into common at $36.25

of the National Federation of Se¬

$2.40

strong cash position, and rela¬
tively small debt structure. There
is an issue of about $33 million

nu¬

branch office at 228 East 2nd

Bethlehem has been noted for its

are

economical

curity Analysts Societies.

POWELL, Wyo. — Anderson,
Randolph & Co. has opened a

dividend.
This year,
much improved results
are
ex¬
pected, possibly $5.60 per share.

development

and

the

i
i
i
fices
26 Broadway, New York,
Anderson Randolph Branch has been announced. R. James

piping,

offer to buy

Co., 25 Broad
Formed in N.Y.C.
Street, New York City, members
Formation
of
the r investment
of the New York Stock Exchange,
firm of R. James Foster & Co.
On June 1, Frank H. Sacken, Jr.
Inc., dealers in state, municipal
became a limited partner.
and corporate securities, with of-

specialty steels.

and
pre¬

Secretary,

limestone. Beth¬
major shipbuilder

also

Chairman

and

repairer, with this division
accounting for around 12% of net
sales. Even in the poor year, 1958,

Program Committee, among other

iron ore, coal and
a

Society,

Fifth

new

Steel specialist in oil well

President

the New York
Lawrence R. Kahn

grated with extensive reserves of

efficiency of steel enterprises in
the past decade. Why in 1958, the

500

F. H. Sacken Partner

forward

Lone

of the

York

the

include

from

fices in Geneva, Switzerland,

improved by Autumn.
would

Ave.

had

been Vice-

Exchange,

associated with the firm

main

New

Mississippi
Valley. Stock sells at 60 V-i with
a
$2 dividend which could be
Other

Stock*

office. Organ¬
ized in 1880, Herzfeld & Stern has

for 1959; and above $8.50 for 1960.
Here's
a
lively
company
well

look

York

Park

manager

And

resplendent

405

when,

capacity—32 points
industry average. Plant
modernization and expansion are
paying off increasingly with earn¬
ings per share expected to rise
from $4.56 last year to above $6.50

serve

Kahn,

College,

Stern, members of

Ave. and that A1 J. Leeds has be¬

there are half a dozen more
steel eq¬
issues
we
might have touched
uity is Bethlehem Steel.
Here
the strikes had been settled.' So,
again the
earnings'
outlook
is upon if space permitted.
with this recent history in mind,
brightened by rising future re¬
Now
all the rather favorable
our
view is that steels are not turns on a huge capital expendi¬
conjectures about certain steel is¬
dangerously vulnerable now, and, ture program. Since the begin¬ sues
above, are predicated on in¬
strike or no. strike, many compa¬ ning of 1955, Bethlehem has spent
dustrial peace. If there is a bitter
nies will wind up the year with over $500 million on plant im¬
and protracted strike, then tear
.record, or close to record, net provement and additions; and the
up the script. If good labor-man¬
"earnings in 1959. This is probable full benefits of this outlay have
agement sense prevails, however,
not only on account of the high
yet to be realized.
Like U. S. then much of the modified opti¬
level of current operations but Steel, Bethlehem is fully inte¬ mism
expressed about the steels
advance of same, only to develop
solid market strength, even before

New

announced that their uptown New
York City office has been moved

above the

fessor at Pace

With Herzfeld & Stern

ated at 86 % of

situated

nounced.

Associate Pro¬

favor¬

nar-

largest

been

be made for Granite

may

the

Society,* it has

especially

has

and

Becker

technology;

make money on 50%

by many leading investment trusts

Lawrence R. Kahn, Vice-Presi¬
dent-investment research of A. G.

the improve¬

that

steel remains

duction

(3)

now

common

L. R. Kahn Pres. of

(4) the prospect of higher earn¬
ings and dividends; (5) the fact

evidence..;*

Republic Steel

ment in research and

rapidly forward" in
achieve a 25% profit margin at
alloy steels. Against
an 85% operating rate.
The most $3.96 last year, Republic could de¬
highly integrated steel company," liver $6.25 to $6.50 per share for
U. S. Steel produces nearly all of 1959—plenty of coverage for the
its iron ore and limestone, and $3 dividend. Republic sells at 74
yielding a shade over 4%.
?
over half of its coal requirements.

valua-

steels

Na¬

customers, and they
buying buoyantly flat
rolled steel this year.
National
is in a fair way to earn $7.75 a
share this year and, if so, increase
its common dividend from $3. At

have

justified by

(1) the very
upgrading of earning
power in the industry since the
war; (2) the modest price-earn¬
ings ratio prevailing among some
quite excellent issues (between 10

con¬

are

can

substantial

stainless and

rningis

program

made it possible for U. S. Steel to

ap¬

proach
share

modernization

and

manufacturers

tional's

are

many

tradi¬

Things
National

91 demonstrable elements of value

sections of the only U. S. Steel and one other
stock list have recently gone on, (Inland) were able to earn their
dazzling flights ■- from
statistical common dividends-in each of the
reality, the steel group has ad¬ first two quarters of 1958. A $4
billion postwar plant expansion
hered
to
ther
;
more

better

Automobile and metal

tainer

About Steel Stocks

reduced.

was

looking

are

now.

The Ohio

Company

•

Ball, Burge & Kraus
*

Johnston, Lemon & Co.
Auchindoss, Parker & Redpath

Incorporated

Blunt Ellis & Simmons

Granbery, Marache & Co.

Financial Chronicle

The Commercial and

Thursday, June 4, 1959

(2522)

put it another way, the challenge
is to dream up a method of build¬
ing a multi-lane telephone traffic
highway in the same space occu¬
pied by a two-lane artery.A partial solution to the prob¬
lem was achieved through the ap¬

Telephone Man Takes

A Look a! the Future
By DONALD C. POWER*
Chairman of the Board,
General Telephone &

Electronics Corporation, N. Y. City

"revolution" in the telephone
industry, which has permitted the industry to outpace the
economy's growth, shows every promise to continue in the days
ahead. He predicts a $750 billion GNP by 1970 providing,
however, a brake is placed on costs of things and on unneces¬
sary government spending. < Indicativeof the technological
Mr. Power

points out that the

made, the utility Chairman finds it a misnomer to
continue to refer to telephone companies as such when they
advances

in effect, communications companies, and to the fact that
mechanization there would not be enough females

are,

without

between the ages

of 18 and 45 to handle today's switchboards.
the ability

Communications: Is

right information to the
light place at the right time. In
its broader aspects it involves all
1© get the

human

en¬

deavor. More-

('M

has

over,

and
psychological
overtones, belearn

not

learn,

And

been

than you
In

with

another.

of spe¬
cialization, our ability to cornmunicate
is
hampered by the
age

might suspect.

order

give

you

reason¬

that

has

made, particularly

been

like to

years, I would
the technological

recent

discuss

evolu¬

should say
of t h e telephone

perhaps

tion—or

esoteric languages we use. "revolution" —
of science, for in¬ business.
stance, were created for the sole
Research Paced Growth
purpose of improving communica¬
tions within a given group, and
Actually, this is the story of an
the rest of us on the outside are
industry that has managed to out¬
etumped
.. at least I am.
y
pace the growth of America with¬
Then we have the considera¬ out
going broke in the process—
tions of space and time. The wide and
accomplished the feat mainly
dispersion of industry throughout through research. We started, as
the
country
and
the
growing you know, above ground, then
many

The languages

trend

toward

decentralized

man¬

agement places new demands on
communications. And in these in¬

creasingly competitive times,, the
vast volume of business data that
constitutes the backbone of man¬
agement decisions must be moved

ever-increas¬
want to keep up

4iid acted upon with

ing speed if you
with the parade.
There

have

been

went underground

tremendous

communications, and we
have many methods of communi¬
cation available to us, but they
by Mr. Power before the
Executives Club of Chicago, Chicago, 111.,
ViXiy 15, 1959.
address

andynow, with

transmission techniques, we
coming to the surface again.
Eventually, we will go to outer
space for certain types of com¬
munication, and that is only nat¬
new

are

ural
a

communications

because

horizon

broad

that

just

has

about

the universe.,

To return

strides in

"An

toward

targets.
be

the

reconstruct

the

nation in

—

and

wish

reiterate

guarantees
"fu¬
ture growth
capacity, I might
add, that is far more economical
than adding pole lines or ordinary
search—virtually

abundant circuit capacity for
.

cables where serv¬
expansion is required.'
: '
;

con¬

subsurface

result

systems of the future.

l,
w'

d-p'df,;■>

these

between headquarters, plants, and

warehouses,
and
the
steadily
growing need "for accurate and
up-to-the-minute information at
all

times, this type of service will
a priceless new tool for
Indeed, there are some
telephone industry leaders who
think it is very likely that tele7
phone toll circuits, in time, will

provide

business;

used

mission

muchAfor

tions.

A'As

case

data

trans^

for:voice communica¬

;y,

tin,'point, ySylvania

Electric Products,:a subsidiary of
General Telephone & Electronics,
has

data

processing

New

upper

connected

that

in
is

20,000 ; miles

York

center

State

leased lines with all of its

plants,
warehouses,
and A sales,
offices
throughout the ..United States;,
wide .variety of information from
facilities all over! the country is
digested

evaluated

and

computer

by t the

turn,

which, ,in

reads

what

known

A "slow-scan

video"; in other words,

Or, to

It is

this

economi¬
with the

provide service more
cally with radio than

expansion of services

that leads telephone companies to
think of themselves today as com¬

of facilities.

kind

usual

companies. " This

cases,

re¬

people at any time will be inac¬
cessible, provided, of course, they

accessible.

look at another
adding of one other

let

Now

trend— the
dimension

the

that is "memory"

system

...

—

and

the ability of

equipment to accept and
information
for
various

exchange

374,602 Shares

store

for various
will
be
used - to
perform
all
lineswitching functions at high speed
—another part will hold the call¬
ing number, the number called,
keep track of the length of the
call, and calculate the toll charge?.
We expect, in time, that the same
system will store the phone numbers you call most often, and put
through any one you wish on de¬
lengths

Common Stock
Par Value $3 Per Share

mand.

out

No
one

•

means

sion

Copies of the Prospectus may he obtained from the undersigned, and the
underwriters, only in states in which they are qualified to act as
in which the
Prospectus may legally be distributed.

other

dealers in securities and

have the
of handling the transmis¬
hand,

business

Co.

For

day's

"branch"—such

in¬

etc.—may

recorded

tapes during the

day, temporarily stored and trans¬
mitted

over

the

regular telephone

lines in the evening when the toll
rates

through
mission

are

lower.

our

read

have

you

that

universities bounced

signal off the surface of the
planet Venus. That is, they sent
out a signal and received the echo.
The
same
technique is being
explored
as
a
possibility f o r
communications—not

world-wide

telephony alone,, but also radio,
television, facsimile, teletype and
da

transmission.

This would be accomplished by

placing satellites in stabilized

bits,

and

flectors
ever

relay

proves

cient.

or¬

them either as re¬
stations, which¬
to be the most effi¬

use

fact, the National Aero¬

nautics and Space Administration
has plans to place two such ex¬

perimental
within
....

the

orbit

satellites
next

Ary

year.

This, I will admit, sounds like

science-fiction.
the

moon

But

told

Navy is using the

communications, link

between

with

Washington and Hawaii
high degree of reliability.

op¬

receipts, accounting information,
inventory 'status,
orders,
time
rolls,

data.

stance, the results of
erations

punched cards

F. Eberstadt

though not as far

radar

and

doubt

that
-Near

—

might expect—is some¬

as you

thing far more interesting. I am
referring now, to space technol¬
ogy.
' .v,.y:: a ;,:y
v.a ; /,

Part of the memory

reasons.

Barge Line Company

time,

Space Technology
Farther out

some

it means providing tele1
orientation, brought by the enor¬ -phone service to areas which, as
matter,
otherwise
mously expanding needs of our a;, practical
economy, means the industry not would have to do without it. What
only will use its facilities for. this all adds up to is this: few

munications

;
'
the

information

•

New Issue

May 29,1959

flow

tremendous

want to

per

knowledge

some

a type of
television which has an applica¬
develop¬
Developments Yet to Come
tion in business; communications.
ments, the telephone
companies
As I pointed out
earlier, the
have gained an interesting
side
By this means, for example, banks
telephone
industry made great
and' their branches will be able
Advantage.
If we were able to
progress when it turned to radio
derive a great plurality of voice
to verify signatures very rapidly,
techniques to improve system ca¬
and thus improve and speed up:
paths by these new transmission
pacity. In spite of these advance-;
their
service.
media, then it should follow that
Also,
technical
-ments,
however,
we
have not
we
could
also
transmit simple
drawings, maps, etc., can be dis¬
altogether solved the basic trans¬
cussed by two persons separated
pulses and other forms of infor¬
mission problems. We need a sys¬
mation on the same circuits. This,
by miles, with the object of dis¬
tem with more speed, more ver¬
of course, has been done, and it
cussion in view of both parties.
satility and greater convenience.
In
otherpoints the way toward some great
words, f commercial
And, to obviate human error, we
advances over the next few years.
phone-vision
in
a
preliminary
need a system that will; in effect,
form is here right now.
Today, advanced forms of tele¬
?;-kAf
allow one machine to "talk" to
phone circuits, such as coaxial
Use of the coaxial system would
another., In the case of "machine
and
microwave
channels, carry
language," we require facilities open up some? other interesting
radio
and
television
programs,
that will handle in the neighbor-, possibilities, such as educational
teletype, telemetering signals and
This
would
enable
hood ;s of 800
words per minute television.
similar
data.
In
fact, there lis
against the present 100 we are large groups of students to re¬
every reason to anticipate the day
ceive
closer and more effective
now
able to transmit. This kind
when virtually all forms of intelof service may be found in wide¬
instruction, :and to profit by, new
ligence will be conveyed, not only
instructional y techniques
t fi a t
from one point to another,but spread use much sooner than one
aren't practical today.
This may
;•
from any point to a multitude of might think.
be an answer to the problem of
./ There is another important ad¬
destinations.
;
;
over-worked teachers and over¬
vancement to conisder, and that is
crowded classrooms in'many com¬
Telephone Companies' Are a
system "extension," which simply
?"
A ,*A
Misnomer
if,
j | > A" A' means that we frequently can munities.
a

only hy the Prospectus.

^rice $25*50

A-'AA:''

With

the process.

American Commercial

similar computer miles

away.

underground
ice

elec¬

working- on the problem. < A n d out essential data to our head¬
when they - get the price down, quarters offices arid decentralized
A'A;-*
to .a dollar, we'll be in business, man agement.Q^<Y4*:'F■
One interesting recent' devel¬
'"I mention this point because thewhich holds particular
device- these scientists are devel¬ opment
oping will be a vital element in promise is the use of telephone
the
advanced
communications facilities within a community for

that they are all the result of; re¬

for

computer to feed its output to the

re¬

ments

possible

earthly

siderations, ; however, our
most
pressing problem has
been the
necessity for providing more and
more
telephone service to more
and more people without having

The offering is made
a

fruits

the

tronic data processing machine or

change in attitude can

ascribed

will

input of

And this

•

Not

its inventive
different kinds of

direct

also

will

search, because research proved
plication of radio techniques to to us that the newer collateral
telephone transmission. The sys¬ -forms of communication comple¬
tem—known as "carrier current" ment and fall into place in the
—allows us to place as many as existing system very readily.
;
12 telephone conversations on a
We
have
philosophy working
single line; without one conversa¬ for us in our 23 research and de¬
tion interfering with another.
In
velopment laboratories. It is this:
effect, this increased the capacity Don't
worry about end costs and
of our physical circuits 12 times. :
complexities.
If
you're
smart
The same basic techniques y are
enough to come up with an earthapplied to coaxial cable and- mi¬ shaking idea that will work, then
crowave
transmission, with still
you're smart enough to figure out
larger increases in " traffic ca¬ how to cut costs and simplify the
pacity.
General Telephone, for thing; And it is .surprising how
example,
recently
installed *:, a often everything works out: that
microwave system at the Vandenway.
In fact, we have one pfoj-,
berg Air Force Base in California ect in
just this sort of transitional
thai is capable of carrying 240
phase. The device works like a
telephone conversations on a sin¬
charm; but it demands The use of
gle radio beam. And systems with ?a.;
large number of. special transis¬
greater capacities
are
possible. tors that will conduct; in both di¬
One transmission unit in a coax¬
rections rather than one; The-bssl.
ial cable, for example, will handle
nearly 2,000 simultaneous two- price we see at the^ moment is §3
each, which is much too expen-,
way conversations.
sive.
But we have some of the
The upshot of these develop¬ best
physicists in the country

ably clear picture of the progress
Donald C. Power

this

running plays.
Well, we
working on that. And
are
closer to the solutions

those

cate effec-

one

job of finding better ways of do¬
ing the things we can do now, we
must develop entirely new ideas
and new concepts so that we can
tackle the bigger and broader re¬

have

communi¬

tively

cover all the
the constant

punt¬
ing, gs^veil as gaining ground on

depending up¬
on our ability
to

from

greater skill in passing and

not

skills

but

•

osophical

cause

Aside

bases.

quirements of the future. In other
words, we must constantly strive
to • inject
some
more;
of that
"triple threat" philosophy into
communications,
and
develop

phil¬

distinct

certainly

other-than-voice communications,

Tomorrow

the use of higher trans¬
speeds than used today,

Independents in the Telephone
Industry

referred-, to

I've
"we"

are

ahead.
"we"

are.

many

things

we look
tell you who

doing 'when

Now let

industry..-The

are

the

telephone,

Bell

System, our¬
selves and some 4,000 other inde¬
pendent companies and the five
Continued

page

/syolume 189

■<■>

i-ii
*

Number 5852

The Commercial and Financial Chronicle

•

Public Is Misinformed

The Minutes of the Last Meeting
•>:

definitely against "monopoly union-;
ism," Mr. Hanley suggests the latter must be sol red before our
economy can confidently take off on the next big cycle of
economic growth and progress. Blaming labor's monopoly
growth on the nation's laws,; the steel head recounts various

TV:

T,-v

jr»

if'"

interest
■2?

which, he adds, would deal

•"

of inflation.

menace

T '

Twelve

steel

companies

negotiations

balance

with

are being carried on
bright

the

-Tspotlight of
5 publicity, and
•3

-y?

in from

coming

side.

every

should
sjr

?>,

at.

tain

opportune
time to look
where

Tare,

far

Act,

Hanley

these

'-seems

how

considerations,
ihay

me,

come

today.

foster

It"

and

power

what

power

jng

the

state

until today

'ipl~
;

••

moo

Act

degree, but it had

labor

imposition

examples

such

mands

labor

the

'<
1

wide

•

set¬

„

movements

the

increases

those unions which hold a strong
{P°sltion of powor; increase their
i
incomes.
Thus, . Monopoly
^monism gams at the expense of
res^ °t the economic system—
and demonstrates again the true
monopoly.
- -

have

fonrl- to
tend
to

nature of

been virtually institutionalized in

new

oecome,

ponrQp

course,

community wage level and

new

The annual wage .increase, has

neighboiwage

The

heoorne

sector<?

our

cronomv

he-

in-

>Panyl^ciors oi our economy De¬
cause
Qf
power of Monopoly
unj0nism.
<

•

■

ponents, of

capital

goods, which

have

seen

increase

inSfhhr
inevitably

sures

vears

over

pus^ inflation* and "productivity"

fwor^o STusedon^

suresTn The'n^us'trT TvfngThT
orienal

to justify wages going UP.

Sofnrnf VSv called "escalator clauses"* yield
force
highei

Such

cbst

ores

a(j(jitional

increases

wages,

industries where the according to another "Drincinle-'5
supply-demand situation is such;
costofliving
that higher prices can be obtained. -In®
H
The result, of course,' is the now
And when both of these fail aa
familiar "wage-push inflation.'.'
' f^ a. wage increase—
both "productivity" and "the cost.£*
Facts in Steel '
' of-living" — Monopoly
Unionism
prices

therisinl

leader

the

steel
industry, as you
employment
costs
have
gone up since
1940 some 238%,
while steel shipments per manIn

know,

holders in

;

went

only 30%.

strike

The

press,

nprfcinntrc school- "d°uble,"
pensioners, ^Phnnl. newsDaoerto the tune Of full-page
advertisements*
clergymen, those older * newsPaPer advertisements.
citizens who live upon
income;
Economic
Consequences
!
from a fixed amount of capital
The economic consequences off
and Government einp oyees. Any
j
^
settlements
in
laboi:of you serving on Governmental
mana£?ement disnutes are serious
bodies
realize
the
problems of management disputes are senous
raising taxes to meet the increased
Continued on page 26
it

teachers,

particular, become

continues.

fn'volume

nhip

Jnlhaf

falls back on another, and equally
unsound,
principle:
ability r to
• Pay. Tins mevitabiy brings m the
question of corporation profits,
; which are necessarily volatile and,
which have been cut in half as
drops
off,
suddenly

increasingly disturbed as the
.

defined

'is

the

Business in 1933 was^ in /a,de-dictionary as "The principle of
^Pu°ra if"» £ % Qon bnion, especially trade unionism."

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

This advertisement is neither an

through the excesses of the 1920s. '
'
f .
..
.
.
,
inventories were high and had toMonopoly. Unionism, therefore,
be worked off. The economies of ^
;^e exclusive privilege of cer-■
'.'" most nations were greatly upset.
individuals and/or orgamza':, We, ourselves,' after ;a ruinous .«K>ns to carry on a traffic m the t

' any of these securities;

(

u.; credit expansion,
'

■

New Issue

and control of unions
of working, or laboring, .persons.

attempting • organizing

were

straighten ■ 'out our financial
community. ; Wages * and salaries

'■]

That this:is truly the situation

T : were'being arbitrarily reduced as J we find today among the'produqf, '( company after company tried to tion employees in numerous iil■>keep its head'above water. The dustries is obvious on its faoe.
r
(quickest, surest way then to re- Some 99% in the automobile in¬

i
a

■■

;:$5,038,300 :
The Munsficld Tire & Rubber

Company

duce

whs :to" cut" wages ;dustry are members of the UAW;
hour—effective the some 96% of the rubber workers
»
"
' "
' 'are members of the rubber work-

expenses:

cents per

rHlO

Vpext day.

"ot.

There

great

was

resistance to ;*rs union; some 98.7% of the embiisi- r pl°yees in the steel industry be-

5% Convertible Subordinated Debentures
Dated

Due

Jane 1, 1959

Jane 1, 1974

■ilthe Union movement among

and-industrial managers

nness

ofi^gto the United Steelworkers

This1 resistance con- Union, some 99.4% of the emtinned for many yea.s in industry Ployees .in the printing and pubafter industry, not excepting |steel, [ Jfhmg industry are members of
^I might add. In 1935 came the 4unions;;.and so on.
•••

that

day-.

Sqhechter-Case, involv-;
chicken: slaughterer in
which NRA was found to be un'-■d constitutional.
That ended Secf
tion 7—but almost immediately,
t
Ein that same - year, • the Wagner
■

famous

Zing

the

vAct

came

t—and

^eral
labor

assistance

unions

'yi

- •

!is

Labor Exemption

—

after-all,
.

merely

is
.

•

the

•

•
.

by Mr. Hanley.before the

K
May 28, 1959.

are

being offered by the

scription Offer will expire .at 3:30, p.m., E;D.T., on June 18, 1959.
offer Convertible Subordinated Deben¬

The several Underwriters may
tures

pursuant, to

the terms set forth in the Prospectus.
:

unions

are

Subscription Price 100%

mo-

This

Ctc pie s

people

the

got
Lord
Acton's
admonition,
given in 1887, that "Power tends

corrupt; absolute power cor-

rupts absolutely."

obtained in

any state from

such of the several Underwriters,

lawfully offer the Debentures in such state.

United

States, have created this situation deliberately, while forgetting
that the power of any monopoly,
ultimately tends to abuse. We for-

of the Prospectus may be

including the undersigned, as may

the

labor had always
been specifically exempted from
the anti-trust laws—and why not?
course,

♦Airaddress

Subordinated Debentures

Company to the holders of its Common Stock for subscription, subject
to the terms and conditions! set forth in the Prospectus. The Sub¬

because our laws have been
designed to promote their growth,

La^or,
A

Actually these

to nopolies fostered by the Govern-

size, 'ment of the United States.

grow

■slo'j

if consummated and exercised,
would enable one or two men to
wield
ultimately
the
greatest
power that has ever been con-

The Convertible

centrated in this country.

into being, continuing
increasing—the Fed-

Strength,- and power.
on .?

In addition, inter-union agreements are being threatened which,

even

Government's

very

■np?rThetJl!LSIec^* corporatedseveralcontractsThis haa
into
extendact. These wage changes increase
jog
the costs of materials, "of
com-; compound|d the effects of wage!

•

eral, and customers and share-,

fon0ws: "Exclusive conof a commodity or service in
.

settlements

nn,«

industries.

ratpd
rates

A national disturbance occurs,
its 'magnitude' depending - on
the size and importance of
the industry chosen for the
assault.
The public in gen-

(3)

Unionism

industry,
have not

essence of the mechanics whereby

"d l?socLtodagLdCnre?eheborn :
ing

■

the

evident, therefore, that this
process of uneven price and in-

wage

articular market»

forced

who achieved the most recent

will

The dictionary defines "monoptrol

have

it is

not always acted I

(2) Refusal
of
management
to
capitulate to such demands
.hour
results in a strike.'

words

textile

textile workers

price increases elsewhere.

come

Resulting

SUCCeSS.

Unionism

these

the

growth of labor unions in
size> power, and influence coritinued. And we face today a situation which, in many instances,

define

the

of the "last act"—but always with
concessions to union power.

the

these

and

manner

point before the conclusion

some

are

some

industry's last offer
union's original de-

That script' is

times

We have

years.

out to completion. Pressures some- i

"pattern

industry

recent

management—which are designed-to
"outdo" thei. de-

■

the grow-

unions.

Demands

•

effect whatever

The

,i«.

Sequence;
evidences

"disas-

should

between

and

proposed by the
union-—often in public and
-:i before they 1 are handed to

TlonT

iame

the

reasons

mands.

industries.

ap-

And to this day, Fed
a
law - continues ; to
promote.. the
.growth and power of labor unions.

industries.
In the industry-wide
approach, if the full sequence is
followed, it goes something like
this:.
;./
.' .'
'

single

have

ference"

union

tlements, brought about by "divide-and-conquer" tactics, as in
the auto industry; or the industry-wide approach, as in steel,
glass, cement, rubber, and other

rea-

:modffied 4e Wagne?
minor

power

andiyiduah em-.oly,,

ployee.

labor

strike

in-

are

the

of Monopoly Unionism has

numerous

Monopoly Unionism Isn't

sad

other

Traces

been '*the

unions

of the Wagner
of labor unions

then to be a fundamental funy understand this term.

y peared

end

There are industries, too, ,where
competition from abroad has prevented
price increases—again a
matter of supply and demand. One

(5) Settlement comes —- largely most from it are those able to
■'
\
giving, in to : Monopoly Un- "push" the hardest. At the other
'; ;ionism's demands, or taking • extreme of the economic scale are
the form of"a'"Soloihon de-: those
*
who cannot push at all.
; r
cision" and "splitting the dif-^ Their real incomes fall because of
have

complex with simi¬

settlements"

ob¬

can

One

union of

which

encourage

focused: on

was

pounded by the
the dollar.

pthe growth of labor unions. can be described only as Monop^ Through this Act, public atten- 0ly Unionism,- and I hasten to
<°;tion

!.•/ •-•.

problem

labor

relations
management
and
em¬
We work hard at the job

was

the

•

good

Ta^t-Hartle ?A<?

sug-

in
1933, you will recall, that the
foltNational Industrial Recovery Act
&f"was adopted.
Among itsr many
^provisions was the famous Section
iu7, which made it a matter of pa^Hional policy for the Federal Govhappening

(1)

wl:We .really have,to go back 26 to a
Wyears properly to appreciate what reai

''fernment

g*'

case.-;

lar-unions in

here.'unj,ons eoyeJing entire industries,

got

I:Pf^10"'35,'6 ™«P4deveiopmcnt|
''is

in which

maintain

the

grew

:-Uc* interest "and

the

situations
immediate

trous"

•

Under the aegis
J.

pi; cern the pubof

with

.onably successful relationship.

un-

the

wage-push

brought about. The strike, by had an increase for, five years! A
'this time, is said to be-"hurtpeculiarity of wage-push inflation,
ing everyone:": \
• \\
:
therefore, is that those who gain

we are

and, indeed, a part of the
machinery through which a strong
union makes its gains. • It is the
way in which one union competes

We believe that this ;

I believe we have had

f1' ions may con-

Out

and

>etween

yf United States,
?i? so

way

ployees.

these

the

or.je,
be an

deal

workers.

lyiheref

why

anyone

want

A'e

This,

voked

power,
•

much
•
And

important

are

viewed

general

believe, as of this minute,
in the steel industry
vould argue with that theoretical
objective, i At Allegheny Ludlum,
.hat

admoni-

-tions

having

their... destiny.

if they

Annual ;, wage
increases
become inseparably a part of the

y don't

advice

and

be sought out

operations

employees with industries in the
category and
corndeterioration of

oc-

interest," the "national deJense," the "international situation,"
these
and
other
equally
high-sounding
and

"underdog" and somehow
-people still retain this image and
erroneously !'believe this still to

•

of power when dealing

businesses

influence

.■

frVwith

brought about by competition for

at this point. The "public

curs

Government

cost

constant drumbeat.

(4) Government intervention

does

happened.
of Monopoly

publicly
at
all.
inclined to deal
only; with the symptoms. Further¬
more,
some
30 years ago labor

organization of individuals. Individuals, the theory goes, have to
be banded together to give some

are

public

has

are
not
immediately
Many of them are of a
secondary, or once-removed na¬
ture. and, even as of now, they

;J Therefore,

KTT*

^..deeply involved in the negotiaiy tion of a new labor contract.: The

the

what

manifestations

effective blow at the

that

Unionism

was

period. Since business monopoly was forced to submit to
public regulation then, Mr. Hanley asks, why not the same.
treatment for this' dangerous institution against the public

y t ; ;

fact

realize

have to

1904

radio, and television keep
a

fact,: the truly

obvious.

ways it manifests itself contrary to the public interest — comparing this to rise of business monopolies during the 1880-

•TV:

;

■

the

not

„

matter

serious part of this situation rests

Not against unionism but

hi;

The

Pittsburgh, Pa.

i-'jf.

•

President, Allegheny Ludlum Steel Corporation

I','.-.

By E. J. HANLEY*

C.rs

(2523)

' 1

A. G. Becker & Co.
Incorporated

June. 4, 1959

The Commercial and Financial Chronicle
12

Thursday, Jane 4, 1959

(2524)

guesswork as well

which is based upon

FinancingCons'derations
By ROBERT V.
General Partner, Goldman

HORTON*

Sachs Co., New York City

essential

order

that the cost

and type

of financing needed for

venture. Mr. Horton

a new

will

places great importance on making a careful ascertainment of
anticipated after-tax annual rate of return from the project;
determining the financing cost in terms of the enterprise as a
whole and not the project itself; arranging financing in
advance; and distinguishing equity from debt or
what other

matter

just to
stand still in this changing world.
It is also necessary to attract and
retain
personnel for conserving
a n d developing further
is

Growth

necessary

enter¬

the

to appeal

the invest¬

and

now

ors

the future.

Neverthe¬

less, the

con¬
flict between

growth re¬
quirements
and

obligation

may go

that

the

soj prepared
suggest the type of financing
is

needed—and

let

em¬

again, needed for the
as a whole, and not for
the project itself nor for any other
particular part of the business or
phasize

business

its assets.

by.

Crucial Question

which I wish to outline is to de¬

money

of the

to pay,,

business

interest

and

just like

sinking fund

direct indebtedness.

It is

makes care in

Horton

selection

the

of new

,,,

projects all the .more im¬

portant.
In this respect, as in
others, growth must be sound. The
future * success!, attained by enter¬

prises will depend in substantial
measure upon the selection of the
best projects relative to the cost
of capital.
The selection among the many

projects available is an important
field for financial men generally
and for controllers in particular.
Much of the raw material for such

accounting

selection

derived

data

accounts.

from

think also that some hard-headed
financial

thinking is essential in

this field.
But

here with

deal

would not presume that

what

can

considered

purely an accounting
Let me illustrate. I do
not believe that accounting con¬

problem.

cepts or accounting data will even
provide all the tools necessary for
decision

sound

this

field.

Moreover, the test of a new ven¬
ture is not the tempting one of
what it will do to total net in¬
come, nor is it even what it will
do to net profit per share of com¬
mon stock.

which I sales, and credit terms hold, each
receivable
which
is
liquidated
of course after
must always be replaced with a
including the low net costs, after
new one and be financed.
taxes, of sizable amounts of debt
financing, or its equivalent. : J
; Like the many other forms of
finance, these devices have their
f: Somewhere in the work along
uses, just as they have their par¬
these lines, either in the estimates
ticular
disadvantages.
But
the
of return on the project or of the
points I wish to make are that
amount of profit that will be re¬
they are merely forms of financ¬
quired over and beyond the cost
ing; that they are debt or obliga¬
of
capital,
allowance must be tions as distinct from
equity fi¬
made for
whatever risk factors
nancing; and that their cost, with
are involved in the project itself.
their other
characteristics, should
And of
should ordin¬
The

costs

capital

have suggested are

Only now does the heart of the
termine the profitability of the
problem arise. Only now do we
project itself. I do not plan to come to the crucial question: Will
detail this work, because I am the project yield a profit or save
course, one
certainly not an expert in the field. a loss sufficient to justify the arily aim, too, for an increased
It seems notable, however, that cost of its financing?
profit, perhaps a handsome one,;
much more consideration has been
above the bare capital, costs one
Here, too, in order to deter¬
given to this matter in our man¬ mine the cost of financing the estimates.
' *
ufacturing enterprises—-and ; par¬
project, we should look at the en¬
Let me call attention to three
ticularly in our oil companies —
terprise as a whole:. Sometimes a points particularly.
First, o n e
than it has in our merchandising
project is accepted merely be¬ may accept an existing capital¬
enterprises.
cause
the needed funds can be ization as sound
and
right for
The objective of such a study borrowed at a low interest fate
one's business, or assume a prac¬
should be to determine how much deductible for taxes. Such think¬
ticable and sound goal capitaliza¬
more will be earned with the proj¬ ing does not seem to us complete,
tion, if the present capitalization
ect than without it.
Note that I because obviously the company's
leaves something
to be desired.
define this test in such a way that credit is weakened to the extent
Second, I would call attention to
allowance would be made for the that it assumes additional debt.
the cost factors used—the interest
avoidance of future losses as well Oil the other hand, if stock fi¬
rates
for
example—should
be
^s-for the gaining of future prof¬ nancing should now be required,
those at which new securities can
we would think, too, that its cost
its.
presently be marketed, net of ex¬
We believe that such a study is is equally an irrelevant factor, be¬
penses. It is immaterial that one
not. only essential'to sound com¬ cause it may be only an accident might have sold a 31/2% bond and
of timing that the particular proj¬
pany policy and sound finance.
still have it outstanding.
For any
Be¬ new
It will be helpful, toft, toward ef¬ ect leads to stock financing.
capital today, you must as¬
sides, such stock financing im¬ sume the current market rate.
fecting any necessary financing
proves
the company's financial
which may be involved.
Finally, note that you must use, in
position.
Stated differently, we
Now having an annual rate of
calculating the cost of common
would think it wrong to say that
stock capital, what one would con¬
return, after income taxes, from
a
project now to be financed by sider the sound future
earning
the project, let us turn to the fi ¬
debt would require only a very
nancing side Of the question.
power per present share of com¬
low profit potential and that a
mon stock of the existing enter¬
project now to be financed by
Turns to Financing Problem
prise.
common
stock would
require a
First, let me emphasize that fi¬
very high profit potential.
;
Arrange Financing in Advance
nancing should be considered rel¬
It seems evident to us that the
ative to the business as a whole
Before closing, I would like to
and not relative to the particular cost of capital should be figured make brief reference to some col¬
project involved. It is not right, overall, relative to the company's lateral matters.
Because of the
for example, to say that because a entire capital setup, perhaps as it financial
position of many com¬
project involves brick and mortar, exists in. fact or perhaps as it panies
foday and because of the
its financing must be long term. might be as a practicable objec¬
difficult financial markets which
in the
Nor, conversely, is it right to say tive, soundly conceived
exist, we believe, generally, that
that just because an expenditure light of the company's business.
financing should be arranged in
is for additional inventory, shortadvance to cover projects as they
Overall Capital Costs
term loans will suffice.
are committed for.
Many times a
The
overall
capital costs for commitment would arise when a
We believe that estimated fu¬
ture balance sheets and income many businesses today are still
contract, as for construction, is
?
'.V'
accounts should be prepared, us¬ high.
signed, but I would have you note,
These estimates—and they are
ing various assumptions as to the
-too, that sometimes an effective
program itself, as to its timing, only possible approximations—are commitment arises because of the
and as to general business fluc¬ of the required "minimum" earn¬
very large costs that could be in¬
tuations and price level fluctua¬ ings annually on the project after
volved in the case of a cancella¬

The
♦From
the

first
a

step

talk

in
Mr.

the

tions.

be compared

of the

with those for debt

usual forms.

May, I conclude by expressing
the

hope that among all of the
possible projects open, andvthe
possible forms for their financing,
one

can, with the counsel of
petent investment bankers
competent attorneys, make

Congress

Merchants

May

26.

the

Association,

before

National Retail

Detroit,

financial

taxes—that

they

can

Mich,.

1959.

Continued

from

page

announcement

is neither

The

Secuity

I
aluminum

vehicle,

developed

was

Twin

just last, year and has
promise of not only fulfill¬

every

ing military needs but interest has
been

received from the lumber,
forestry and oil exploration indus¬
tries since this product is capable
of year 'round

transportation no1

only

normal

but also

able

types of terrain,

those that

other

are

vehicles.

impass¬

This

all-

aluminum

lightweight job is de¬
signed to be airborne, amphibious
and

fast.

-V'J,:.

;

Twin has several other products

yet in the development stage that
no -. doubt
will
encourage
new
business and greater profits.

Capitalization

„T

Dec.

31, 1958,
consisted of just 85,715 shares of a
$1.50 ($35 par) cumulative, con¬
on

vertible preferred stock (convert¬
ible into 1.49 shares of

common)
519,170 shares of common out¬
standing, besides the 127,714 shares

and

reserved for the conversion of the

com¬

munity.

This

and
per¬

fect judgments and
prosper from
them in the
alluring future which
is said to face us. ;k-A'
i; J

tion of the project or a delay in
preferred stock and 27J53 shares
ignore, either, pared directly with the project its accomplishment once
it
is
for stock option plans for officers
the continuing lease obligations, earnings estimated along the lines
started. And then too, sometimes
I have discussed earlier.
and key personnel.
the
continuing sales of receiv¬
a commitment can as
a practical
I would, however,
V-Loan restrictions prohibited
ables, and such collateral items as
stress one matter be involved, merely be¬
will affect importantly the fu¬ particular point.
I am sure that cause of a proper desire to pre¬ the payment of a cash dividend in
ture financial position.
management would consider 1958 serve the best public relations early 1959, resulting in a 5% stock
We are of course in a field here earnings—for cyclical reasons, as with customers and with a com¬ dividend
payable in late May.

39th Annual Convention of the Con¬

trollers'

future

com¬

statements must not

process

Horton

These

re¬

ceivables dre: self liquidating, but'
if sales volume,
ratio of credit

1 im itationg

upon

true, of

that most customers'

power per: course,

be the future earning

data

The real base should

neces¬

even

sary

prises.

they

names

many variables involved
basis for sound judgment.

review

with the > result
of capital figures are

purpose,

present copnmon. share as the en¬
terprise now stands. " "

synthesize

the

offers advice regarding selection

fen* other reasons—too low

also too low.

Retail financing-specialist

the

for

future, but there is the virtue
that the guesswork is to be done
in organized fashion. We believe
also that such organized work is
to

offer

sell

nor a

solicitation of

offer to buy

any

of these Shares*

Now, of course, I could go into
"detail
about
various
possible
forms of financing, but the form
of
financing to be adopted is
"largely a matter of investment
banking technique applied to a
particular situation. In addition,
"form changes with changing mar:kets
and
changing investment
banking styles. I will therefore
confine
myself to two general
"points.1 •••; / ' /\ -;:V_ ' ;•
•

The

offer is made only by the Prospectus.

NEW ISSUE

150,000 Shares

Management

■

•

Common Stock
'

(Par Value 10<

per

Share)
'

Price

$4.50

per

Many have heard about the ad¬
vantages of investing in the mer¬
chandising business rather than
investing in real estate. We think
that
the
question of owning
versus leasing real estate for the
direct requirements of a business
is only a question of how best to
finance their availability.

certain

that

lated this year.

Earnings for the

first quarter of 1959 were 70c per
share compared with Sic in the
same

period last year,<even though

sales, in

the

first

"three

months

were

$9,369,511 compared
$9,935,695 in 1958.
c
•

•

Hermes Electronics Co.

feels

loan restrictions will not preclude
the payment
of cash dividends

Twin

finances

with

have much

im¬

proved in the past yean -On Dec
31, 1958, current assets were $13.*3
million ($1.3 million in cash) with
current liabilities
a

ratio

capital

1.7 to

was

of $8.3 million,

Net working
about £0% over
1.

the previous year.
In
pears

Twin Coach
Company that is

summary,

to be

the

hands

ap¬
now

very capable
management and has every indi¬

cation

Allures of Debt Financing

Copies of the Prospectus may be obtained in any stale
from such of the several underwriters, including the under-signed, as may lawfully offer the securities in such state.

With the high debt

■

way
*

ing.

C. E.

for

Unterberg, Towbin Co.
"

June 2,1959

ratios which

exist in many industries today, al¬
ternatives to direct financing by

•

of debt are naturally allur¬
This is one of the reasons
sale-lease financing and for

of a successful operation
profit.
Past record (excepl
1958) is almost meaningless, be¬

and

cause

changes

having

elimi¬

nated

unprofitable subsidiaries
The future of this Company is in¬
deed a very promising picture.
Twin's

financing by sales of receivables.
I wish merely to make the point
here that both of these forms of
financing involve obligations to
enterprise using them. Barring
receivership, rent is an obligation

Stock

common

stock

{symbo]

TWN) is

the

a good bet on manage¬
ment and know-how and with the
stock trading on the New York

lieve

Exchange around 15, I be¬
romantic
picture has

this

dollars in it.

Volume 1S9

Number

5852

The Commercial and Financial Chronicle

stress most

The Big Squeeze on Little Steel
President, The Colorado Fuel

There is

larger

distinction

between

and Iron Corporation

smaller

steel

and

tolerates

■

steel

must be curbed and small steel

;

warns

are

the

past

century,

steel

ever,

d(Mibt

were

any

them

;

critical

those

themselves

inflation

sufficient

have

present
vthreat

our

'American
standard

/living.
The
;

issue

basic
Aivin F. Franz

under¬

lying
;

these
problems is the inflationary trend
that has persisted since the close
World

/of

War

II, despite three
Inflation has brought
increasing costs, a rapid
growth in foreign competition, inadequate depreciation allowances
and, in some instances, the over-

seas

recessions.
'

..with
,

]

migration of American busi-

These

ness.

challenging

companies,

■.

developments

all

are

American

steel

both large and small.

\,.'I would like to discuss their im¬
pact

the smaller companies.

Rising
'*

spite

Costs

the

high

present

,1 operating rate, and the good fi¬
nancial performance of the steel

^industry during the first quarter
•'. of this year, we are

steel

production

all

aware

that

are

con-

costs

stantly

increasing.

This

not

problem; it has plagued both
large and small companies for the
past 15 years. However, during
that time, no acute crisis was pro¬
voked since rising costs were, to
a
great extent, recouped through
higher prices. But, in the past two

;

years,

-new

it has become progressively

difficult
to

raise

prices in
for higher

compensate

order
costs.

For, during this period, we have
witnessed the crystallization of a

political
can

recover

economic situation
price increases
be counted on to
rising costs.
and

continued

where

must

will

further

profit

longer

sales

The

1958.

average

again next

year,

after, getting price
well become an im¬

year

may

possibility. This is not the state¬
ment of an alarmist ,but a fact of
political life in the United States.
therefore

It
one

seems

that

of the most pressing problems

us today is how to keep the
companies in the steel industry
economically
sound
in
a
free
enterprise
system.
With
rising
costs, and little (prospect; of ade¬

facing

quate

the five-year period, 1954 through

1958,

price relief,

the

industry,

costs

the

only 4.4%

the

stable

and

prices. In fact,
and the stock¬
steel
company

holders

any

must view with

concern

sug¬

any

gestion resulting in lower profit
margins that would threaten the

security

of the

The attack

enterprise.

on costs can

address

American

New York

by
and

Mr. Franz
Iron

Steel

City, May 28, 1959.

before

the

Institute,

Let

have

now

import side of the picture.
domestic market

look at the

we are

pr0duCe cheaper and better steel.
Moreover,>foreign producers have
wage rates ranging from 66% to
86% lower than those paid in the

In the

at a com¬

petitive price disadvantage in such
products as rods, barbed wire,

United

nails, reinforcing bars, and other
items. In 1958, for example, rein¬
forcing bar imports totaled 473,000
tons, or about 200% higher than
1957, and were equal, to about 23%
of domestic null shipments in 1958.

modern

States, , and, because of
equipment,. their produc¬

tivity is increasing rapidly at our
expense.

oow

*^3

„

Another
in

the

result

cost

the

increase

NEW ISSUE

June 3, 1959

production is the
construction of plants by Ameri¬

$50,000,000

•"' >

Public Service Electric and Gas

Company

American
and

productive efficiency
foreign wages provide a solu¬

tion to at least

lems.

some

First and

of their prob¬

American-owned

manufacturing facilities

now

total

billions of dollars.
An

added

reason

Refunding Mortgage Bonds,

5H% Series due

overseas

Dated

198^9
Due

June 1, 1959

June 1, 1989

given for the

current interest in setting up for¬
two
ways:
First,
by
fully eign plants is that our government
modernizing plant and equipment is being urged to give a better tax
to take advantage
of the latest rate to domestic corporations who
developments in technology, and would do most of their business
second, by keeping operating costs abroad.

reasonable levfel.

Price 101.931% and accrued interest

Many will present the point of
that any additional advan¬

view

Depreciation

tages given to foreign competition
The modernization of plant and will
only accentuate the problem
equipment requires large invest¬ of protecting American jobs, and
ments which should come, in great that
any tax reform should first
part, from depreciation reserves. be applied in this country.
These

reserves

are

presently; in¬

and

a'change in the tax laws to
remedy this inadequacy is long
overdue.

The

European

Japanese industries
ized

with

our

steel

the

were

generous

and

modern¬

assistance

government. The American

industry

should

now

helped by amending the tax laws
so
that a realistic
depreciation
allowance

can

recovered

what

have done for others.

A realistic tax policy should be
adopted permitting us to recover

the

purchasing

nal investment.

power of the origi¬
This can then be

in modern equipment,

thus help reduce the cost of
production. Such a reform in the

sidy.

sub¬

It merely returns to the in¬

vestor what is his.

I would like to

Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in Stales in which such underwriters are qualified
dealers in securities and in which the Prospectus may legally be distributed.

to act as

Foreign Competition

Foreign competition has become
a problem of
growing importance
during the past two years. In many
respects, its remarkable growth
can
be attributed to rising costs
in the United States. This prob-..
lem should be evaluated with a

•

sense of balance, neither
exaggerating its impact on the
steel industry nor minimizing it.

■

Is-

;

Eastman Dillon, Union Securities & Co.

Dick & Merle-Smith

proper

Carl M. Loeb, Rhoades & Co.

Kidder, Peabody & Co.
Merrill Lynch, Pierce, Fenner &

F. S.

Smith

Moseley & Co.

Incorporated
-

R. W.

productive efficiency is equal to
our own, and represents a serious
competitive threat to our steel
markets, both at home and abroad.
In 1957, the United States ex¬

Pressprich & Co.

Stone & Webster Securities Corporation

Salomon Bros. & Hutzler

Wertheim & Co.

Dean Witter & Co.

Clark, Dodge & Co. Dominick&Dominick Estabrook&Co. W.C.Langley&Co*

ported 5.2 million tons of steel
mill products, and imported
1.1
million tons. But this ratio of al¬
most 5 to 1—in favor of steel mill

exports—dropped to less than 2 to
1 in 1958, when exports fell to 2.7

The First Boston Corporation

provide for most of the cost of The plain facts are—many foreign
replacing worn out and obsolete firms are well managed, aggres¬
equipment. We certainly should sive and now have modern facili¬
be
willing to do for ourselves ties. In a number of cases, their

tax laws does not constitute
♦An

be made

and

faced with serious

older equipment. We no
^ve
cilities
Jj?
5?
us to pay higher wages, and-still
our

000 tons—a decrease of 54%.,

can

management

companies,

are

Nations and.far^better^thanmuch

preeminent position, fell from 538,000 tons to 244,long had

reinvested

difficulties.

59%.

has

of sales.
can companies in foreign countries.
readily seen— These
companies, representing a
certainly in relation to the smaller wide
variety of manufactured
steel
companies—that the catch products, have felt it
necessary to
phrase, "wages can be absorbed establish plants abroad to help re¬
because of exorbitant profits," is
tain
markets
and
remain
com¬
a
myth. This proposal offers no petitive.
They have apparently
solution to the problem of rising concluded that a combination of
were

Thus

and particularly the smaller steel

67th

present, if costs go up,
price relief is imperative to main¬
tain these earnings.
In fact, the
smaller companies will
be in
greater need of price relief than
the larger ones, for many of them
have not had sufficient capital to
modernize their plants fully. This
is an item congressional commit¬

earn¬

ings of these eight companies for

relief

period—a drop
Exports of. tinplate, art
item; in which the United States
of

and costs

000 over the same

supplement inade¬
depreciation charges, and,

adequate due to postwar inflation,

the

wjikh was financed by the^Umted
States. ^Thus, many, of their plai s

declined from 604,000 tons to 249,~

competitive

steel

Therefore, because of political
pressure, it will be much harder
for the industry to raise prices
high enough to cover any increase
in
cost
that
may
develop this
year. If such a pattern continues,
and

While, in 1957, the American steel industry paid its work$3*22 per hour, including fringe
benefits, the Japanese steel indus/Imports*. untibv recently, were try paid 46 cents per hour. This
creases because of so-called "ex¬
capital to invest in new facilities principally confined to common i0w labor cost, coupled with the
orbitant profits." Let us examine and who have reaped the rewards steel products, but, within the past increased efficiency of new
equipthis statement and look at these of modernization through lower year or so, a number of specialty
ment, clearly explains the reasons
so-called
"exorbitant
profits," costs. They seem to forget that wire products have arrived on the why a ton of Japanese steel prodparticularly the "exorbitant the smaller steel companies have American market in alarming ucts can be manufactured, shipped
profits" of the smaller steel com¬ not modernized to the same degree quantities. In 1958, imports of a across the Pacific. Ocean, stored
and so have higher costs which number of steel products ranged
anci
panies.
trans-shipped to American
Consider the eight steel com¬ require price increases to cover from 30% to over 200% higher steel producing and market centhese costs. Therefore, by keeping
than in 1957.
„
,
panies, including The
Colorado
the price down when costs go up,
These are facts!
In answer to
Continued on pcige 00
Fuel and Iron Corporation, whose
the protectors of the small busi¬
annual ingot capacity falls in the.
ness
man
have, in reality, been
medium range of about IV2 to 3
squeezing his profits to an alarm¬
million
tons; Net earnings
for
This advertisement is neither an offer to sell nor a solicitation of offers to buy any of these securities.
those companies averaged 4.6% of ing degree.
The offering is made only by the Prospectus.
sales in 1957, and only 2.3% of
American Foreign Plants

and

economy,

costs

facilities

obsolete

margins. This is
tees do not seem to realize.
even a cursory study
In
industry finances and their attempt to bring pressure on
emphasizes the absurdity of the the industry to keep prices down,
statement that the industry can they direct their attack against
absorb wage and other cost in¬ those companies who have had the

only
steel in-

dustry, but
^ also the entire
.

Costs

shapes decreased from

453,000 tons in 1957 to 292,000 tons
in 1958, while exports of plates

evident from

not

the

squeeze

day. They affeet

costs.

increase

to¬

The true solution to these issues
can
be found only in a frontal
attack

position. To modernize, their earn¬
ings must be maintained at a level

kept in line, if possible, reduced
—for, with price limitations, any

than

before

that

Yet,

importance, to the smaller
who must rid

in order to maintain

Costs

—

the industry. Yet
companies, and, for the most
they are small companies,
have been severely affected.
It
actually greater than steel tonnage seems to me, however, there is a
exported.
factor involved here far more sigBecause of these developments, nificant than tonnages and perwe appear to have lost much of
centages. It is simply this—the
our foreign market, and a portion
American steel industry in certain
of our domestic market is in jeop-; areas
is no
longer - competitive
ardy.
For example, the United with the rest of the world!
'
States exported 721,000 tons of
semi-finished steel in 1957. > This ;vThe-reason behind this, is no
mystery. '/The European and Jap¬
dropped to 124,000 tons in 1958—
anese
steel- industries
were,
in
a
decrease of 83%.
Exports of

companies

quate

Attack

soon

Plant modernization is of para¬

mount

modernized to keep production

the

spent

plans for 1959 call for little

for

During

and

industrial facilities

that $30 billion of actual expendi¬
tures.
/;
:

competitive and profitable.
American steel industry has faced
and solved many problems. How¬

—

our

to the best modern standards.

Compounding this is the prob¬
foreign competition.' The solution, Mr. Franz enjoins,

plant iuvestments abroad, the industrialist

large proportion of
plant and equip¬

Over $95 billion will have to

spent

bring

a reasonable level.
Referring to the aid
extended steel plants abroad and to flight of
private U. S.

•

great part, destroyed durmg World
II and

operating costs at

structural

industrial

lete.

re¬

is realistic depreciation allowances, and a twofold attack on
costs by
modernizing plant and equipment and by keeping

part

ment in the United States is obso¬

said to face serious difficulties.
lem of

some

and February, 1959, imported
tonnage of steel mill products was

the

profits,

price rise and rising costs, these smaller firms

tal shipments in

December, 1958, and again in January

vation that

longer

tling is the fact that in July and

In recent surveys, the McGrawHill Co. made the shocking obser¬

according to Mr. Franz, not only in size but more
importantly in the cost-price squeeze. The spokesman for the
smaller units makes clear it is characterized
by lower

these facts, it has been said that
high of 1.7 million tons. This is exports and imports represent a
significant enough, but more stftf-p relatively 4Small percentage of too¬
a

industry alone. It affects all Amer¬
industry.
; • r\'

ones,

less modern plants, inadequate
capital and depreciation
serves.
Confronted with a political climate that no

million tons, and imports reached

ican

;,'

companies

emphatically that the

problem of inadequate deprecia¬
tion is not restricted to the steel

'By ALVV1N F. FRANZ*
.

Cztmy

Lee Higginson

Corporation

Spencer Trask & Co.

Shields & Company

Tucker, Anthony & R. L. Day

F. S. Smithers & Co.

Wood, Struthers & Co.

The Commercial and Financial Chronicle

would

By EDWIN G. NOURSE*

[

Eco-

Since I celebrated

fold

these:

With my own

have

watched

the

eyes

transition

The shock of

simple

horsesteam
ered

and

world war, dismay

the real strains and the
amazing productivity release of a

technol¬

ogy
of

start

to the age
jet planes,

world

war

human

chemistry,

entific method.

antibiotic
G.

together,

built

The basic and blessed difference
between the Old Economics and
the

social changes.
I propose to
a quick look at this changing
pattern of our free enterprise
economy in what I regard as its

take

Marshall's

fred

librium

very

school

analysts, in spite of

equi¬
many

economics was predom¬
inantly description and apologet¬
ics.
The central purpose was to
get a complete and accurate pic¬
progress,

make

quite explicit one basic assump¬
tion from which I start. That as¬
sumption is that almost every one
who had a college education in¬

ture of the

economic process and
generalize from these data the

in the

economic

principles of economics. From this
training one emerged with certain

economic

can

variants and much methodological

challenging aspect.

course

Economics

simply stated. From Adam Smith's
theory of laissez faire through Al¬

and

doing this I want

New

courses

laws
.

which

held

together

cosmos

this

and

made it tick.

understandings, values, and preju¬
dices about things economic.

Two morals

were

deduced from

Old Economics: (1) to be
signed to the kind of a deal
the

Those who "took" economics dur¬

ing the first quarter of this cen¬
tury got what might not unfairly

the

individual

the

private

•An address

by Dr. Nourse before the
Jersey Bankers Association, Atlan¬
City, N. J., May 22, 1959.

New

word from

these shares having
appears

been sold, this

matter

of record

announcement

only.

The

economy and of

While the lately won indepen¬
from the Treas¬

dence of the Fed

point of all this New Eco¬

is highly important, no less
important is the voluntary con¬
ference
procedure between the
two
agencies to arrive at the
suitable rewards and incentives to ! soundest
compromise procedure
ury

voluntary group action that will
promote operative efficiency, with

contributors to na¬ .at times when legitimate goals of
productivity, so that* the the two agencies conflict. So too,
several parts of the national eco¬ the jealous oversight of the Con¬
nomic machine may mesh together gress serves a sort of check-andto
achieve
vigorous national balance purpose, even though it
growth and stability. Through permits political pressure at times
broadly educated management and to override economic statesman¬
wise
policy-making
under
the ship. *
•
New Economics, the United States
the

several

tional

the

and

World

Free

that

prove

out

are

f
This brings us to a
view
with
reference

NEW ISSUE

LUMBER CORPORATION

Invisible

and

power,

Hand

the

Old

Eco¬

per

gov¬

complementary

play, but it should be the
and the achievement of
business policy and ad¬
ministration to make the sphere of

purpose

private

possible to doing its full

job.

business

into

This

terms.

steel

age,

petroleum age, an electric age, an f
automotive age, and a chemical f
age. There will be
constant re-t|
alignments among these groups, j
and their constituent companies,
in

technological t
prefer? f
from the point of view, t

the

take

lead

development and
But

ence*

the

New

consumer

Economics,

tion executives

corpora-',
are the

whole

as a

for> the

trustees
in

to' adjust to; or V.

attempt

they

capital function

enterprise economy. It is
policies and practices that
determine the vigor and direction?
our

their

investment
direction, and 1 conservation. • f
y /
formation,

capital

If time
a

permitted, I could draw
glowing picture of the way-'in

which the petroleum

foreseen

the

industry has ?

needs

in? i

our

private-consumer !
society and poured
billions of j
dollars into technological research f
and
geographical exploration to
see
that means of meeting those
needs were developed at least one
dustrial

and

jump

and

ahead

often

their

history

less

jump&-j

several

actual

emergence*]

admirable

has

by the steel indus- j
it kept a watchful eye on 1
the prospective exhaustion of old
written

been

try as

sources

and

ore

sources

new

and built the

out

hunted

home

abroad

railroads, port

facili-J?

ties, steamships, and beneficiatioii
works needed to bring them into

free economy.

have

to the

already referred

cut the garment of national

the

be—"independent"

Labor.

the

;

lies

Here

Treas¬

the

epic

struggle of?
day, and the New Economic^?

our

But it cannot be—and is not

ury.

pros-1

perity. The other blade is the®
consumption function, whose'
most articulate spokesman is Big?

has

its

work

cut

out

for

tury began with the coming of a
currency.
I: start my

Treasury's devising principles and making?
hard problems of budget adjust¬ them effective in practice,
where?;*
ment and debt management. Be¬ by the ultimate mutuality of in? J

analysis here because this devel¬
opment has both historic priority

yond this, monetary policy needs
to be skillfully tailored to ever-

and

basic

—indifferent

economic

significance.

changing

In the nineteenth century,
by
turning back the tides of "greenbackism"
and
rejecting
"free
silver," we won a considerable
victory over forces that would

the needs of

of money to
The

commerce.

Gold Standard Act of 1900 gave us
"sound money" but at the expense
of rigidity, as the money panic of
1907 clearly showed.
Passage of
Federal

Reserve

our money

"elastic

Act

1913

pattern to

one

currency," and that is

trying

living with
practice in a way

permit and indeed

con¬

duce to maximum national growth
with needful price stability.
a

managed

start to

system, we
dangerously—just as

currency

live

did when
the

road

start to live with

and

In the latter

clearer

put automobiles

airplanes in the
case

needed

principles

of traffic con¬
trol and well-trained and socially

responsible
With
need

the

drivers

new

money

and

"pilots.
system, we

principles of control and
responsible as well as econom¬

the

situations
to
financial stability

business
both

promote
and

high sustained use of national
resources
the goals enunciated
in the Employment Act.
Such a
coordinating role as was implied
—

undermine the power

sky.

to 1

administrative:)

their

responsibilities in equally broad
and
economically
sophisticated

fact that the Fed is—as, it should

High
School of systematic administra¬
tion of our economy in this cen¬

that will

New York, N. Y.

are

life in

small

integrated and internally
consistent
pattern
of
economic

Managed Currency

Dlgby 9-3430

officials

union

and

manage d

with > another

have

Oul' graduation from the "little
red
schoolhouse"
economics
of

149 Broadway

basic

one

Of course,

terest

capitalist

producer

and:?

ili !
price-income
mechanism which is not regulated ?
automatically by a flexible small?!
laborist

consumer

balance

through

shall be kept

unit market mechanism but

which/*

preceiving the necessary limita-p
tions set by supply and demand*

Economic Ad¬

conditions, tailors them wisely

to?

original Act has
spelled out in the
interdepartmental Advisory Board
on Economic Growth and
Stability

each other through the exercise

ofj

for

the

visers
been

Council
in

the

further

formalized

hower

Reorganization

Number

Committee

the pattern we are still

PETER MORGAN & COMPANY

also

has

role to

and

But they present
similarity
and
a:?
challenge to corporation top ex-.?
management.

public action as small as possible
because private action comes as

Economics.

New

ernment

Now when

Price

sufficiently. economical use. So too of chemi- 5
Furthermore, such policy must be caK light metals, and others. r> i'r
But this
is only
part of the
grounded' not only in competent
of the role of capitalist'
understanding of the techniques story
of business or finance, but also management
in
our
unfolding*
must be broadly oriented toward enterprise
system. Capital must t
the national welfare, not merely not become a golden calf to be
to
nineteenth-century standards worshipped for itself, and sacri-*
fices and burnt offerings made to!
of individual or company profitmaking. Finally, these segmental it by the people. It is simply one
policies need to be coordinated blade of the shears with which we
be

nomics, but by sophisticated pri¬
vate administration guided by the

(Par Value $1 per Share)

our

which
I
shall
be
emphasizing
with .throughout my paper. This is the
intelligently responsible
use
of importance of conscious policy—
that power, we
can accomplish not
just
"doing
what
comes
optimum results for the whole naturally" — if any large-scale
people, not automatically by the business or economic apparatus is

economic

'changed

COMMON STOCK

concentrations of pri¬

reasonable

the

150,000 Shares

point

enterprise, with changed pattern of economic life

free

nomics is to develop a rationale of

serve

AND

regional Reserve Banks.

Labor

problems
of&
capital
management
and
labor *
management present many differences from the problem of money

ecutives

from the

SEABOARD PLYWOOD

funda-r p
changed j

the

Obviously

consider

managed
All

Administrators

community needs and individual
credit - worthiness, the regional
banks are given a detailed but

poor."
optimistic-,

how their
policies are arrived at and how
they are implemented.

re¬

you

people
get from this system, or (2) that
the smart boys could adapt their
operations to this irresistible
process in such ways that they
we

use

Business and

sands of local bankers have about

stinkin'

Economics

New

vate

Noura*

Accompany¬
ing this physical progress, I have
seen hardly less startling economic

tic

fresh

Professionals and

working

laymen,
Edwin

and nuclear fission.

the New Economics.

medicine,
physics,

'radio

cluded

gave

economics conceived as
engineering based on sci¬

synthetic

eco¬

depression that wouldn't go

second

most

about

away,

pow¬

eco¬

been

thinking

greatly is repeated on a larger scale in the
concerned about the business poli¬ national Board of Governors, with
cies of these administrators of the its staff and
advisory committees

nomic life and business behavior.

America from
a

methods

is a soundly, even brilli¬
antly, conceived answer to the
problem
of
providing
modern
America with the elasticity and
safety needed in our commercial
banking system. From the grass
roots understanding that thou¬

•

The

exposed to
since the hi i d d 1 e
1920s have
seen
the birth and growth of a
different
attitude
and different
have

most

that

system that is
part
of
the

money

Gov¬

Board

ernors,

system

class

national

descrip¬
comprehensive picture of sectional
tion, a "humane system." The New
economic conditions, which is
Economics is concerned with those
supplemented by the, continuing
large; units. of business organizaf
studies of their professional staffs.
tion that are needed to operate
Theif findings and recommenda¬
our modern technology efficiently.
tions are reviewed by the regional
It is concerned with those elite
banks' board of directors, com-:
groups who are needed to guide
posed of representatives of busi¬
the affairs of the large aggrega¬
ness
and the public, as well as
tions of Big Business (including
bankers.
This same almost sci¬
big banking) and of Big Labor. entific apparatus of policy-making

nomic thinking from the formal
teachings and the-business experi¬
ence
and the public discussion

United States.

"the

constructive,

valiant, and, to

Economics."

developed

have

who

Those

immune

President ' Eisenhower's

and defends

Old

"the

called

76th
birthday recently, I feel that I
have been greatly privileged in
seeing a new pattern of life un¬
my

both

class

"admonition."

economic

"the filthy rich" and an irredeem¬
able

sophisticated private administration and self interest
of "exhortation"

the

something to be accepted from

braces

shears with which we cut "the garment of national prosperity";

use

look

high with a natural succession
of prosperity and depression or an
economic caste system, that em¬

nomics from the New Economics in dealing with the issue of
private policy-making in our economy and the need for execu¬
tive expertness and mass economic literacy to make our econ¬
omy work.
Pointing out that the flexible small-unit market
mechanism as an automatic regulator is passe, Dr. Nourse
refers to today's mutuality of group interest needed to keep
price-income mechanism balanced with a reasonable concen¬
tration of private economic power used intelligently and
responsibly so as to forestall governmental intervention. - The
author depicts Big Business and Big Labor as the blades of

considerate of national rather than group interest;

under

sees

pattern of our economy.

highly in¬
the managed

plane

mental

not

tellectual

some

the New Economics is that it does

the Old

policy-making

businessmen.

nice profits for:
Personally, I believe that the
by outsmarting those system of private-enterprise local
"savvy" how the- banks, most of which hold volun¬
system worked.
tary membership in twelve re¬
Now the essential difference in gional Reserve Banks federated

distinguishes

economist

American

Prominent

'•

ically competent b a nkers and

out

who didn't-quite

Economic Association

Former President, American

scalp

even

Vice Chairman, Joint Council of Economic Education
Former Chairman, Council of Economic Advisers

brains

inevitable, but might

themselves

Consultant, Washington, D. C.

Author and

their

beat

not

against the

Changing Pattern
01 Our Economy

The

Thursday, June 4, 1959

...

(25261 j

Others

argued
more

President

under

the

Eisen¬
Plan

Hoover

Report.

besides

that

Eliot

have

Bell

need

much

close-knit policy-coordinat¬

ing body which he calls
Economic Council.

National

Others besides

Randolph Burgess have responded
that such
any

new

body would not bring

wisdom

deeper sense

responsibility to bear on this
complex problem than we now
have, but would lessen the flexi¬
bility of action and check-andbalance

autonomy

American

methods,

and

would lead to monolithic bureauc¬
racy.

Neither

questions

the

faction,
need

for

going

in New York between a *

indus??

four-man team of the steel

try and four top representatives of *
the

West fail to find

reconciling

the

two

continuance

arms

race.

union

East-^

way

any

rigid
flicting ideologies, we

United Steel Workers.

and

of *

con--?

in for?
wasteful ■

are
a

irresistible force

dogma

meets

imp*

body
of
managerial?
"prerogative" we are in for a character¬ renewed and perhaps aggravated**

istic

judgment, guided bjp
objective analysis and revised in?
the light of measured results.
There is a striking parallelism j
between
the
Foreign
Ministers?
Conference being held in Geneva 1
and
the
Summit
meeting
now}
managerial

movable

race

cost-push inflation.

What

however,

—in

top-level

nomics

the

have

book

points

read-^or
of

the

clearly

written:t

New

Eco¬

conces- '

Volume

189

Number

5852

The Commercial and Financial Chronicle

(2527)

•

both

proclaim

sides

management

that

would

leadership of both

new

labor

and

toward

solving market problems and thus
avoiding the threat of government
intervention

the

pattern of
include also

economy would
the remarkable growth of popula¬
tion
and
its
age
distribution;

social

myself

Economic

Sophistication

the

issue

policy-making

and

expertize

and

nomic

impact

this kind

managerial

decisions,
rising level
iOf respect for principle as a guide
to policy and more general study
been also

of economics

business

economic

preparation for

calling;

staffs

more use

and

research

aids to decision-making. This staff
work on economic data and eco¬
nomic

theories

corporation's
problem

both

the

labor:

pertinent

ternal power and internal politics
When
it
comes
before
the
top

decision-maker.
informed

But

could

person

doubt that in somewhat the

that

plant

way

science

relies

operation
and

today

skilled

weaving
strands
of
principal
and
social
responsibility into our pattern of
,

economic

Important

elite

groups

true

that

management,

and government, it
stream

higher than its

slow

but important

gains in the battle
against economic illiteracy of the
of

mass

voters
so

are

naive

spenders, 'savers,
and
being made. I am not
to

desire for

suppose

that

—

matter—that self-

interest should

to be

cease

great

motivating
force
or
even
the
dominant motive in the actions of
*the economic man." But I believe
the changing pattern of American
life shows signs that mass atti¬
tudes

actions

and

to reflect

of view

brought

adequate breadth

to national rather than

interest and

group

can

perspective.

longer time

•

jr One final word should be said
the

matter

sustained

prosperity

under

the

much resented and much ridiculed

activity referred
of

"exhorta¬

"admonition." No amount

our

New

for

needed

economic

they keep emerging
fast-changing
economy.
as

situations

need

San

before

danger

figures

ness

time

much

who

and

spending

are

company

money

warning' the
public
of
the
dangers of inflation or the need
for savings, or the need for higher
productivity are so outraged when
public officials, from the Presi¬
dent down, or economists of pro¬
fessional prestige venture to dis¬
cuss
the
same
subjects
and
recommend

which
and

courses

based

are

action

broad view

ently

interest

vis-a-vis

interests is caricatured

suc¬

the

cessor

shal

from

may

right

al-

The
one

the

times, and

Bargeron

1957,

Taft

Bob

tragedies

the

Co.,

effect upon

Just-before

him Brien McMahon,

Drive,

prominent of young senators died.

finan¬

cial and stock-

holder
tions

Senator

rela¬

who had

Hills,

Denver

and
Victor

Dykes,
patiye of

Dykes

Vandenberg
much 1o do with the
the

arrested, is

eral

the

told

Erlander

also

and

staff.

air

brilliant
.

chief

force

York,

Trask

man¬

Cabot, Boston.

1949,

Mr.

founder and
cer

Dykes

became

chief executive offi¬

of Texas Fund. He

President

seriousness

the

Texas

was.

elected

International

perhaps,

some way

meeting Tito told Mr. Er¬
Nikita
Khrushchev really believed when
the
Hungarian
revolt
occurred
that the uprising had been in¬
stigated by the West as the pre¬
lude to an attack upon the Soviet
Union. Khrushchev was preparing
for some sort of Western assault,
and what changed his mind was

opposing the
course

him

British-

at Suez. This

the

found

my..

■

(Special to The Financial Chronicle)

BOSTON,

Mass.
joined

Pioren

has

Keller

Brothers

Walter J.
the staff of

—

Securities

'■

•

sort
If

Soviet

preventive action.
this judgment is accurate, it
of

....
'

Joins Paine, Webber

scientist, means that Mr. Dulles' difficult
died of stomach cancer, as did course of checking this country's
John von Neumann, the famous closest allies in the United Nations
mathematician, although where it also helped to avert World War
III. )
'
attacked him was unspecified.
' ' " ■/
■
;
General Lee Chennault, com¬ : Every time there is a cancer
mander of the Flying Tigers in death of a prominent person, the
World War II, was lost to cancer, agitation is renewed in Congress
to ' increase
as was Dr. Francisco Duran-Reyappropriations
for

(Special to The Financial Chronicle)

nals,

John

funds for

scientist.

cancer

Foster

Dulles

the

was

Taft

CHICAGO, 111. — Richard S.
MacGregor has been added to the
staff of Paine, Webber, Jackson &
Curtis, 209 South La Salle Street;

cancer

always

research.

opposed

With Estate Sees.

Carl

and

This

is neither

announcement

•'

•

offer

sell

nor a

solicitation of

connected

with

Co.,

Wm.

South

Neihart

curities Corp.,
Mr.

Kane

was

len Investment

Co. and Mountal*

States Securities

Corporation.

offer to buy

any

of these securities.

275,000 Shares

Investment Corporation of Florida

(Special to The Financial Chronicle)

CINCINNATI, Ohio—Thomas H.
affiliated

now

Lynch,

Pierce,

Incorporated,
Building.

COMMON

with

Fenner &

Dixie

STOCK

($.02 Par Value)

Ter¬

With Eastern Investment
(Special to The Financial Chronicle)

NORTH
Walter
Eastern

READING,
is

Zawacki

Investment

213 Main Street.

Mass.—

now

Price $4.50 Per

with

Corporation,

He was

formerly

with John G. Sessler & Co.

"sacrificing"

F. P. Ristine Adds

"altruistic"
legitimate in¬

PHILADELPHIA, Pa.

F. P.
Broad
Street, members of the New York
Stock Exchange and other leading

Ristine

Co.,

123

appeals to "con¬
ruthlessness, or
exchanges, announce that Reed A.
selfishness, or badness is not only
Morgan, Jr. has become associated
to be expected but applauded. In
with them as a registered repre¬
my book, admonition is an essen¬ sentative.
tial ingredient of a free enterprise
system and .is .not an appeal to
Now With Clayton
non-economic goals or procedures,
terests,

science"

where

Copies of the Prospectus
dealers

national

prosperity,

harmonious
ment

approach

of all its

based

adjust¬
working parts.
#

It is

clear

that any full

discus¬

be obtained from

brokers only in States in

any

of the undersigned

act as

which such underwriters, dealers

dealer's, and in which the Prospectus

AETNA SECURITIES CORPORATION
STANLEY HELLER & CO.

may

PORTLAND, Maine — Donald
Kelsey has become associated
Clayton Securities Corp., 443
Congress St. He
was
formerly
W. E. Hutton

other

& Co.

June 2, 1959

are

MICHAEL G. KLETZ & CO.
INC.

with

brokers

ROMAN & JOHNSON

GENERAL INVESTING CORP.

be legally distributed.

(Special to The Financial Chronicle)

consistent

qualified to

educational

may

—

South

have

1600 Ogden Street*
formerly with Al¬

With Merrill Lynch

become associated with Estate Se*

The offering is made only by the Prospectus.

Colo. —Verlyn J*

DENVER,
Kane

in¬

these

latest tragedy,

(Special to The Financial Chronicle)

;

Salle Street.

minal

(Special to The Financial Chronicle)

Smith,

Co,

Inc., Zero Court Street.

in turn may have forestalled some

CHICAGO, 111.—Donald R. Craig

whe

polio.

Keller Bros. Adds

NEW ISSUE

Lameier

little

Salk

Dr.

answer

With Wm. H. Tegtmeyer

Merrill

perimenting all by himself will
come
up
with the answer and
humanity will be as grateful as

Fermi, atomic

Salle Street.

Some

answer.

(Special to The Financial Chronicle)

CHICAGO, 111.—John P. Giangiorgi is now affiliated with Ben¬
jamin Lewis & Co., 135 South La

now

Nobody

but

Benjamin Lewis Adds

Tegtmeyer

off

he is consid¬

purse,

isn't

day, in

dying at the height creases ?nd the proponents of
Sulphur Co., of Houston in 1953, of his power. He was the subject increased funds now say that had
a position he held until
of a scathing attack by the Demo¬ he thrown his influence behind
moving to
San Francisco, in 1955.
cratic Advisory Council just be¬ them he would probably be alive
fore he was stricken. Among other today.
■
V

Eisen¬

Mr.

known scientist who has been ex¬

partner in the investment

agement company of Cromwell &
In

its

money

At that

Enrico

in 1928 joined ! the
banking firm of
&
Co.,
Boston.
Subsequently, for 16 years, he was
a

Federal

denies

affair.

Nations

Because

Fed¬

seriousness of the disease.

Yugoslavia in June
few months after the

French-Israel

was

funds.

the

one

ered hardboiled and callous to the

the American stand in the United

Nations

United

cancer

several

investment

Spencer

most

Hoyt Vandenberg, distant relative

Mr.

New

lost

the

one

Arthur

was

and New York.

creation

counsel,
Beverly

Connecticut,

Oregon*

attack

cancer

advocates

Beverly

hower doesn't take the strings

in
a

Neuberger

had

case

money.

parently

lander that in his judgment

death

sudden

cancer

the world. It isn't

over

shortage of

foremost

story

know

up.

year.

Senator

have been emin¬

Minister

Tito

Suez
Carlisle

South

private
admoni¬

tions to be "good" or

but

puts

deep study. Discussion of the

public

That

addition

every

who

Sweden about his visit with Mar¬

was

ex-

that busi¬

all

Prime

His

undoubtedly had an
the course of history.

policy,

time.

fell to the dis¬

Vice-

Booke
400

position to see
strikes. It is a

•

spent every
donations run into
to what the
are

months ago but in whom it is ap¬

senators of his

ease.

constant marvel to

ive
Rep ublican

most

President of

all

icy of this government;

g g re s s

Fran¬

named

his

against

was

has

progress

Millions and mil¬

family gives $1 mil-r
You can multi¬
ply that by any number of similar
donations. Research is going along

disputes should be settled by the
United Nations—that was the pol¬

Nebraska, one
of
the'.: most
a

Wherry

Distributors

pounded by those who are better
informed and warnings given by
are

Senator

was

cancer

who because of

man

lion

persuaded them to with¬

draw from the attack.

death in the

there

years

cisco, has been

those who

them but

several

Senate

bankers, labor leaders,
and union members, or citizens in
general
will
provide
all
the
problems

back

•

government

allies, deserted them, at the time
of the Suez Canal attack by Brit¬
ain, France and Israel. It is a
fact
that he
not
only deserted

others

and
.

Nebraska, also

nessmen,

answers

senators

Line-Fund
in

Private

research,

for

dollars

millions

pronounced.
First, going

come

among

Dykes,
formerly .VicePresident, and Director of Value

training for busi¬

pre-service

year.

things they claimed wrong with
our foreign policy was the state¬
ment that he ran away from our

is no
Washing¬
to learn. The death
cancer,

Victor

intellectualism

New Economics. This concerns the

tion"

disease,

in hign piaces

BEVERLYHILLS, Calif.—

approach to widespread and

as an

toll

Victor Dykes Joins
Booke & Do. on Coast

rise

can

and

source,

ton has

and

all this is for those

jabor, finance,
is

labor

en¬

constantly

business, life.

The dread

respector of persons

same

gineering, business management is

(

eco¬

make

work. I did

management,

lions

evidence

cure

that

reason

funds

and

not been made.

one

challenge to pro¬
groups such as those in

government.

the

and

file

causes

the

By CARLISLE BARGERON

greatest

banking,

the

still further
debased by considerations of ex¬

think

sents

and

needed

of economy

fessional

the union's policy
somewhat biased
in

management

private

this, as I said in my opening
paragraph', because I believe this
is the phasb of change that pre¬

camp,

executive

Washington
Ahead of the News

executive

lack

into

large-unit

rank

organizational units and the wider

literacy

the

economy

there has

that

From

security. But I have limited

It is encouraging that, with the
growing prominence of large-scale
..

-'there

Nonsense,

geographical shifts; new spending
reducing
the saving, and taxing patterns; and
monetary policy .evolving concepts and practices of

to their normal role.

changing

our

and

of fiscal and

area

sion

■

;

sions

Financial Chronicle

The Commercial and

Securities Salesman's Corner

Thursday, June 4, 1959

mistakes and mis¬
understandings that arise between
Most of the

people are

been a proper

dividend to which he is

that
he must return it to the purchas¬
er.
Arguments and confusion in
such
cases
can
be avoided by
checking the situation and clearly
making the facts known to the

cla¬

understanding be¬
fore
are
made. Many
salesmen and customer's represen¬
customer.
tatives could save themselves a
great deal of wear and tear on
After You I Come First
their nervous system, extra de¬
Most people are reasonable and
mands that are made upon their
they do not expect that a busy
time, and much needless work for
salesman or customer's represen¬
their clerical and accounting staff
tative drop everything he is doing
if they would sit down with some
and sit down with them and have
of their customers
and explain
a long chat about a hundred and
why certain rules must be fol¬
one unrelated items to the exclu¬
lowed in the purchase and sale of
and
decisions

rification

sion of all else.

securities.
Some salesmen are so

busy ask¬

ing for special favors for certain
of their accounts that you would

day

still

and

his

job

properly.
Good customers know
this, others can learn it, those who
won't you don't need.

not entitled he should know

that

due to the fact

there has never

receive

co¬

regulations, nor can he operate a
'coffee-clatch" in the midst of a
busy

Control

Account

needs

salesman

good

operative customer if he is going
to properly service his account.
Be can't be making new rules and

DUTTON

By JOHN

The other morn¬

ing I was in a sales meeting and
I received a call from a new cus¬
tomer which I was

told was very

ICC Recommends Measures to Cut Passenger Losses
The Interstate Commerce

To Finance Committee

and

dations were:

Ammidon,
of

urgent.

York;

Mosher,

Reduction of state and local tax

President

General

NY Cotton

services

are

business

this

which

Tor the protection of

everyone, the customer as well as
the broker.
It has taken many

to establish

years

code of proce¬

dure that is uniform and practical,
and

there is

justification for
anyone
who thinks they have
some sort of special privilege that
entitles i them
to
the
right
of
no

changing these rules
particular benefit.
There

are

for

their

people who sell stocks
the x-date and

few days before

the

not

salesman;, does

them of this.

This is

.inform

mistake

the

part of the salesman.
It is
good policy to check the x-date

before securities

customers wish

are

sold.

sell

Some

after the

x-date and unless this is clarified
there

sometimes

mond

unnecessary.

friend who had
to me and he veri¬

Stuart

Hutton

railroad properties;

Elimination

go somewhere

else.

be¬

duplication

With Dean Witter

the

East

equipment

this

tions

are

state

brought to

rail

most

action

by
is:

authorities

break-even point.

relief

main

local taxes.

Experimentation with new types
coaches, sleeping cars, dining
cars and other facilities;

and

that

local

before this service can!

necessary

solved

believe

and

The

renewed

passengers.

officials

and

terminals

trains,

new

drive
Of course, f
the commutation problem still re-i
mains as one of the major ques¬

facilities where possible;

would

from

*
r

$10 Million Issue of

the part of

railroad management

to stimulate

efforts

Greater

railroad passenger

studies

Fare

Memphis, Tenn. Bonds

traffic; and
roads

the

Offered to Investors

provide greater elasticity of prices
and also exploration of new means
of

stimulating additional patron¬
by high quality advertising
and promotion.

age

Commission

The

its

report

theory advanced
examiners that if

also rejected the

by one of its
railroad
passenger

National

First

The

City

Bank

New

York, Harris Trust and
Savings Bank, Chemical Corn Ex¬
change Bank and The Chase Man-'hattan Bank are jbtnt managers
of
an
underwriting
syndicate
of

which

June

awarded

was

issue of $10,000,000

City of Mem-f
tinued to decline, parlor car and phis, Tenn., general improvement
sleeping car service would dis¬ bonds, due Oct. 1, 1960 to 1989;
inclusive. The group submitted a
appear by 1965 and coach service
by

service

con¬

The Commission stated
travel is, and for the

1970.

"railroad

foreseeable future will

be an in¬

bid of 100.1246 for a combination
of 5s,

ing

3j/2S, 3.70s and Is,-represent-}^
net interest cost of 3.5129%

the city.

tegral part of our national trans¬
portation system, and essential
for the nation's well being and

defense."

2.30% to 4.20%, according to maf

Commission

The

not

did

at¬

tempt to fix the blame for the
carriers' losses on passenger busi¬
ness

amounted

which

$610,-

service.

senger

misunder¬ should either make walk the chalk

are

Louis and

St.

moves

and

cuts

expected
for

patronage of railroad
by the Defense Depart¬

passenger

Exchange

Further
fare

you

standing. But if the customer does line

three

and

pacity.

Robert

Co.;

in .service

Ohio

Baltimore-Washington artcp
Chicago and reports are that they 1
are running at almost 90% of ca- »

K. Vincent of The 000,000 in 1958 and $723,483,000
Kendall Co.; Alden H. Vose, Jr.
in 1957. The Commission said, "the
sent this man
of Kohlmeyer & Co.; G. Clarke
causes are many and complex —
fied my original impression.
He Watson of New York City; Albert
no single one more culpable than
said: "Don't let that fellow im¬
M. Weis of Irving 'Weis & Co., and
any of the rest."
pose on your time. In a way I re¬ J.
Antonio Zalduondo of Orvis
What was of particular interest
gretted that I sent him to you, Brothers & Co.
to railroad officials in view of the
he's liable to be more trouble than
With the exception of Messrs.
impending rail-labor negotiations
his business is worth."
Gollatz, Purkiss, Reid, and Watson, was the
strongly worded recom¬
There
are' some
people who all of the others were members
mendation urging a study of terms
have no consideration for anyone of the retiring Board who wer*
of labor contracts and equitable
but themselves. They are so self- re-elected.
treatment of the railroads with
centered
that you can't change
other modes of travel. In the latter
them by suggestion or example.
I
Walston Adds to Staff
phase, the Commission observed,
don't- infer here that you should
(Special to The Financial Chronicle)
"the impetus given motor and air
not
be
considerate, polite, and
DENVER, Colo. —William W. travel by Federal, state and local
cooperative with your customers,
Buller has been added to the staff government promotional programs
but there are people who will
of Walston & Co., Inc., 818 Sev¬ has
unquestionably operated to
literally run you ragged if you
enteenth Street.
the disadvantage of railroad pas¬
let them.
These are the ones
I contacted my

Baltimore-Washington, ,»•

Cincinnati and

ment, Post Office Department and
other Federal agencies;

under

Larger

Elects Officers

operates

placed

been

Baltimore

placed

between

the

burden

Elec¬

■

rules

to "

new ?

local and state tax relief
railroads will not be
subject to Federal income tax;
given

Company
G.

and

operating them at less than first41
class fares, plus Pullman charges,'

that any

Trust

of New

have

cases

"Slumbercoaches"

new

Revision of Federal tax laws so

United

States

has

The

recently

Repeal of the Federal excise tax
of 10% on passenger fares;

President
the

service.

some

business

equipment

Fares

tween

attract

profitable \

reduced

been

Among the specific recommen¬

•

Currency

the

business.

long-haul

Chamber Elects Three

Finance

favor

Com¬

mission, after some three years
of study, issued a voluminous re¬
port recommending a number of
steps to cut down losses from pas¬
senger
train operation and also
The
New
York
Chamber .of means by which this traffic could
Commerce today announced the be increased. The Commission also
election to its
called for tax relief on a local,
Committee on
state and Federal basis.

excused myself' and tric Credit
im
think they would end up on the went to
my desk and answered
Corporation;
Kuy L. iveierson
bread line if they lost one of these
the
call.
This
man
had been and H a n s A.
perpetual privilege seekers. They referred by a good account and I Widen ma
nn,
should change their entire atti¬
had executed an order for him
partner of Carl M. Loeb, Rhoades
tude toward their business. Weak¬
over the telephone. I told him I
and Co.
ness
in
handling customer ac¬ was in a meeting and my secre¬
Roy L. Reierson, Vice-President
counts can be symptomatic of an
tary had told me that he had in¬ of Bankers Trust Company, was
entirely negative approach, not sisted that his call was important
reelected Chairman of the Com¬
only to clientele building, but in so I had left the meeting to answer
mittee.
relationship to the entire field of him. Do you think that made any
account management as well. Un¬
impression on him? It certainly
less your customers realize that did not.
He went into a long
you can only work with them speech about a trip he was taking,
advantageously if they follow the that he would not be back for
rules and appreciate the value of
several weeks, the state of his
William K. Love, Jr., of Ander¬
your own time as well, you are
liver, and what did I think of the
better off without those who will market?
son
Clayton & Fleming, was re¬
elected
President
of
the
New
cooperate.
Finally, when I could get a York Cotton
Exchange
at
the
word
in, I asked him why he annual election. Re-elected ViceExplain Why Rules Are Important
called me and he finally came
In handling cash accounts there
President is Tinney C. Figgatt of
around
to
the
point
that
he
is no reason why any customer
New York City. John M. Williams
wanted to have the securities we
should expect you to* constantly
of Royce & Co. was re-elected
purchased for him placed in safe¬
ask your cashier's department for
Treasurer.
Those elected to the
keeping if they returned from Board of
Jlme extensions. There is a spe¬
Managers are: Harry B.
transfer
before
he
came
back
cified settlement day for delivery
Anderson of Merrill Lynch, Pierce,
from his trip. Without being im¬
and payment of securities. No firm
Fenner & Smith Inc.; Edward C.
I told him that all he
Can run its business properly if polite,
Angelery of Cottonia Co.; Alfred
should do in the future was to
it is constantly called upon to
Boedtker of Volkart Brothers Co.;
write out these instructions, put
write
-extension
letters,
make
Joseph J. Gollatz of New York
them in the mail with his check
checks payable for securities sold
City; Fred W. Perutz of Schwabach
and it would be done.
I finally
before settlement date, and con¬
& Co.; A. C. Purkiss of Walston &
tinuously change transfer instruc¬ got off the phone and this inter¬ Co., Inc.; William Reid of Bache
tions after orders are placed. It is ruption upset a whole meeting, &
Co.; James E. Robison of Indian
took the time of another ten men
definitely the salesman's job to
Head
Inc.;
Malcolm
J.
Mills,
inform 'his
customers
that the who were waiting for me, and
Rogers of New York City; J. Ray¬
caused me extra work which was

(2528)

"Yet, there is little evidence of

comparable government ef¬
(.Special to The Financial Chronicle)
fort to promote the public interest
SACRAMENTO, Calif.^Harold
in railroad passenger service or to
E. Bachtold has been added to the
staff of Dean Witter & Co., 924 prevent or take into account com¬
petitive inequalities that may be
J Street.
induced by such promotion pro¬
grams."
With

reoffering to the public, the
bonds are scaled to yield from '
On

turity.
members

Other

of the offering

include:
Equitable Securities Corp.; C.
J. Devine & Co.; R. W.' Pressprich & Co.; J. C. Bradford &
Co.; The First National Bank of
syndicate

Oregon;
Seattle-First
National
Bank; Union Planters National
Bank, Memphis,
Tenn.; A. G.
Becker & Co. Inc.; Braun, Bosworth

Co.;
Witter

Dean

•

Inc.; "Wood, Struth-

Co.

ers

Cross

Inc.;

& Co.; Roosevelt
The Marine Trust

York; Ameri¬

Co. of Western New

Securities

can

Corp.;

Fahnestock

Co.; Baxter & Co.; Andrews &
Wells, Inc.; Robert Winthrop &
&

Third National Bank in
Nashville; Julien Collins & Co.;
Co.;

Wachovia

Bank

Co.;

Trust

Whipple & Co.; Mercan¬
tile-Safe Deposit and Trust Co.;

Bacon,

Robert W.

Baird

& Co. Inc.
■

•

any

SALE

FOR

Kentucky Co.

(Special to The Financial Chronicle)

122-Bound Volumes of the

that

the

LOUISVILLE, Ky. —John W.
Allen is now with The Kentucky

CHRONICLE

From

road

Company, 320 South Fifth Street,

& FINANCIAL

COMMERCIAL

World

members

the

Midwest

Stock

1929-Dec. 31, 1957

Available immediately in N. Y. C.
Write
Edwin L.

Phone

—

REctor 2-9570

Beck, c/o Chronicle, 25 Park PL, N. Y. 7

many

the

Mass.

—

Boston

Stock

mercial

said

and

B. C.

lowenrfgrof

Bank

Com¬
Building.

Ziegler Adds

(Special to The Financial Chronicle)

was

reductioi^ of labor

National

CHICAGO, 111.—Walter O. Sal¬
is now connected with B. C.

mon

Ziegler

and

Company,

La Salle Street.

South
.

operating costs.

Arnold W.
Englund has been added to the
staff of Chas. A. Day & Co., Inc.,
Washington at Court St., mem¬
change/"

major target in any

was

War

(Special to The Financial Chronicle)

BOSTON,

PEORIA, 111.—Herbert C. White
become associated with Her¬

bert B. White and company,

service

obvious that

has

of providing

attempt at substantial

Chas. A. Day Adds

bers

out

•

(Special to Tee Financial Chronicle)

rail¬
has in¬
sharply since the end of
costs

passenger

creased

pointed

force

Exchange.

Jan. 1,

Commission

The

With Herbert B. White

Ex¬

interesting

note

that

Joins J. P. Arms

the railroads, more re¬

(Special to The Financial Chronicle)

cently in the East and Southeast
have taken steps to attract more

The roads are seeking
to
eliminate
short-haul
and
branch line traffic where possible
passengers.

MINNEAPOLIS,
F.

Christensen

Minn.—Milton

has

staff of J. P. Arms,

Pillsbury Building.

joined the
Incorporated,
.

Volume

189

Number 5852

The Commercial and Financial Chronicle

least it is
priced item.

very

THE MARKET... AND YOU

reasonably

was

something of

market

I. D. A. C. Convention

wonder. But the ardor chilled

New Blue

when

Chip

the

anti-trust

ties started to

The

limelight was taken
over to a
degree by a new face
with the latest reshuffling of
Stocks
ran
an
uncertain;.the ditch the next. This had the components of the induscourse
this week ' With con- been coTrrrfed on as one of trial
average.
That ■; placed
siderable proftt-iaking to. be
Chrysler's better y e a r s By Switt & Co among the "blue
ohoAvKA/i
^
J
^ chips .fof American industry,
absorbed, chiefly in the elec¬
some .circles.
to some of its followers. That
tronics, chemicals and drugs,
*
*
*
might be: too strong a statefollowing the new, - historic t
Ford was the sturdy item ment,. although Swift is the
peak the industrial average
reached to close out last week, and it posted a new high since most
consistently profitable
The peak was a solo perform- the
firm "went public" in, company in the meat packing
ance
that failed ; to inspire 1956. It has forged decisively lineup.
^ r ; ,
^
either the rails or utilities to over " even the
momentary"
W
* v *
better action and consequent- peak reached in counter marSWift more than the others
ly brought renewed caution,
ket dealings when the shares has been able to iron out the
T
.
,
.
were being distributed. The troubles of low profit marLi ncertam Specialties
demand for the shares was gins,
fluctuating supplies,
Raytheon was rather obvi- such at that time that trades high expenses^and static sales,
ous
by an appearance on the were made above 70 in the Swift has been working hard
list of new lows again. Zenith counter
market
while
the on its profit margin, decenwas
upset at times but that underwriters were alloting trahzing (it recently closed its
didn't stop it from guarantee- the shares at 641/2. This is the
Chicago slaughtering plant)
ing an early appearance on first it has been back in the and because of its success is
this week's list of new highs. .70 bracket since.
even something of a candidate
Motorola also had some rough
^
^
#
...
for a- slight improvement in
times, but was still able to
its dividend this year. The
By WALLACE STREETE

(2529)

eye

tice.

Foremost
of the

one

authori¬

Opens June 8 in Banff

the

prac¬
result is

TORONTO,

Canada—The

higher-yielding in

the group, its return
nudging
the 5% level and its
range
for all of the year so far has

will

yet

8 to

stretch

Springs Hotel,
Alberta, June

points.

11.

350

Over
❖

While

held

Banff

full

two

43rd

annual meeting of the Investment
Dealers*
Association
of
Canada

members

rails

have

been

Associa¬

the

tion and their

•

ignored, some of the com¬
panies that depend on trucks
have done far better, notably
Ryder System which has.
about tripled in
p. year. But,
the

annual

meeting

hold

around

half

hundred

t-,

N/r

^International Business Ma-

chemicals

was

m"ct
most

*hm
this

/-.

^-v

v-»

•

was

wppk
week

f I'Urvrti-*

,hp
the

aftpr
after

nUn

v»/\n

nv\

lir

this

and

year

had

"best

its

first quarter and we face our
best prospects." It resulted in
a

boost in the dividend and

plan to split the shares and
then

list

them

York Stock

the

New

,»

■.r

•.

[The

age,. especially for a w e 11convincing break^ swing of more than 100
which also stimu- p0ints from the low to the managed and basic part of an
industry that seems destined
lated a bit, of prof it-taking
g00c} even for a for almost certain
improve¬
vfhen the general market was
high-priced issue,
ment.
"
"
' e^sy. That also was the pat¬
mount

through,

tern in Allied Chemical.

The

Oils in Rut

to their de-

rroaucts preSsed values against some
Which was able to put m a
high-flyers that have been in
couple of appearances at new the market spotlight, seem
highs together, one on a day incapable of getting out of the
when the market was set back rut in which
they have lanas harshly as it has been in a
guished for so long. And even
no me

month.

some
.

Foremost
in

The Honorable Dr. J. J.
ince of Alberta.
H.

union

negotiations. The bright
spot in the nonferrous group
Kaiser Aluminum which,

like American

dividend :basis
since

would

Home Prod¬ the

ucts, shrugged off a period

rough going for the general
list by working to a new high.

that,
mean

was

not

Three Sons Join

ties

Chicago Analysts to Hear
CHICAGO, 111 —L. Chester May,

Corp. has been formed with

ofifces at 11 Pryor St., Southwest
to engage

securities business.

Philip L. Miller is President and
Treasurer. He

Treasurer Of American

Telephone
Telegraph Company will be
guest speaker at the luncheon
meeting of the Investment Ana¬
lysts Society of Chicago to be held

June 4 at the Midland Hotel.

formerly with

was

Rankin

McNeel,
French

associated with the firm.

now

Budd,

Crawford.

he conducted his own

Joins Bache Staff

and

In the

past
investment

business in Atlanta.

CHICAGO, 111.—Donald R. Rose
has joined the staff of Bache &
Co., 140 South Dearborn Street.

❖

n e

offer to sell

nor a

solicitation of

offer

June J, 1959

NEW ISSUE

help
boosted,

yield

175.000 Shares

offering price.
r

of these securities. The offer is made only by the Prospectus.

any

■

Avnet Electronics

Corp.

Common Stock
(Par Value 10per Share)

g- when the recession took hold

depressed, holding and Universal is still reflect-

their

ground with fair success ing these cutbacks. But with
contributing nothing of larger
capital expenditures
interest
to the various ses- planned by the oil companies,
sions.
Universalis picture isn't black
for the long run. Once the
Motors were u n d i s t i n - selling by; disappointed initial
guished for the most,
al- holders subsides, orders pick
though Chrysler was a bit up and profits reflect it, Unieasy when it reported May, versal
at
around
17-times
output had fallen a bit sharp- earnings is definitely laggard
ly below that of April al- against other issues with far
though still maintaining a higher ratios and, as a matter
comfortable
lead
over
the of fact, even under the 22comparable month last year, times ratio of the industrial
Chrysler in recent years has average. Being well debeen the boom-bust item in pressed, it is an issue where
the group, bouncing from red the chances for upside profit
ink
one
year
to stunning are far better than of any
profits the next, and back into more downside losses. At the
,

Price

but

$5.75

per

Copies of the Prospectus may be obtained from only such of the undersigned
as are
licensed or registered brokers or dealers in securities in this State.

'
•

■

•

■

■'

Incorporated
Aetna Securities

Corporation

Kaplan & Co.

Bruno-Lenchner Inc.

•

' '

Amos Treat & Co., inc.

Michael G. Kletz & Co.

John H.

Strauss, Ginberg

Being a supplier to the oil
industry, Universal Oil is still
Oils and Motors Sag
laboring with a low level of
; Utilities
sagged without contracts. The oil industry cut
much fanfare and oils and back rather sharply last year
continued

buy

Bowlen,

Foley, Chairman of the
Board; Powell River Company
Limited, Vancouver, N. R. Crump,
President* Canadian Pacific Rail¬
way Company, Montreal.

(Special to The Financial Chronicle)

This announcement is neither
to

Presi¬

Lieutenant-Governor of the Prov¬

with the oil industry have had

speakers at the meeting will be:

are

Miller Securities Corp.
Formed in Atlanta

quiet, includ- troubles,

were

lected than

busy expanding
favorite pattern
of
was

under the

Vice

of the outfits associated

notably Universal
products which has been
disappointment since its
ingly unperturbed by the public sale. Even putting it on
stalemate
still
existing in an indicated 50-cent annual

rails

the

When

dairy companies —acquiring
small, "local companies to expand sales and earnings — it

mg the steels that swayed Oil
with the overall market seem¬ a

was

dairy business.

Chairmanship
E. H. Ely,

Metals

is the

views

ATLANTA, Ga.—Miller Securi¬

Another basic industry that
isn't too widely appreciated

expressed in this
The principals of Strauss, Gin¬
article do not necessarily at any
berg & Co., Inc., 115 Broadway,
time coincide with those of the New York
City, announce that
"Chronicle." They are presented
their sons, David Ginberg, Gerald
as those of the author only.]
Markowitz, and David ,C. Strauss,

Dairy Group Neglected

°ils> despite much fa-

drug stalwart was vorable attention

x^nencan

Exchange. It has

years ag0

*' '

\eld

Edward H. Ely

company had paid

reactionary for the jew

t i

told, that isn't necessarily the
dent,
Wood
end of it. Despite the reces¬
Gundy
&
Company,
Limited,
sion, the shareholders were Toronto, who is the retiring Presi¬
apprised, the company re¬ dent of the Association.
Guests of honor and principal
ported its best year in 1958

$3 until a had fast growth to where it is
when the rate now the second largest truck
was
trimmed to $1.60. The
leasing operation and the
shares had been a sensation
siock,Ts'on£resultris" avail- largest carrier in the South.
Union
recently. These shares, split
chines

points above its year's low.

^vhich will be
of

wives will be

present at this

Stanley Heller & Co.

French & Crawford, Inc.
Arthur B.

Hogan, Inc.

<4>

.18

The Commercial and Financial Chronicle

(2530)

Thursday, June 4, 1950

that if

lieved

centage should decline below two,»

The British

Ingrained
Fiee Trade Mentality

the authorities
has

Einzig believes his country's

reflects:

move

about

concern

our

Eng.

import of

many

from

dollar

the

goods

consumer
area

are

did

removed

mmmmmmmmm:

not come as a

surprise.

recent months

the

Govern¬

showed

ment

great determi¬
in

nation

re¬

sisting pres¬
sure against
further

assume

form

the

concessions so long as
American economic
nationalism continues to rise. They

pointed out that recpnt unilateral
•concessions in favor of American
exporters were followed by the
rejection of several important
British tenders in the United

the lower prices

States in spite of

they quoted. The Government was
seek an assurance
against the recurrence of such in¬
cidents before proceeding further

called upon to

of easing restrictions
imports.
>

in the way
on

dollar

the Government
repeatedly reaffirmed its determi¬
nation to insist on fair treatment
though

Even

of British tenders,

pared

not pre¬

was

unilateral

from

abstain

sions.
official

give an undertaking to

conces¬

Judging from some of the
answers to Parliamentary

questions on the subject, it ap¬
peared indeed probable that some
further

What

nent.
the

concessions
came

surprise is

of the concessions

extent

nounced

immi¬

were

an¬

visible and invis¬
walls against British

Should there be such in¬
or should there be further

crease,

evidence

unfair discrimination

against British tenders, the Gov¬
ernment might find it difficult to
resist pressure

in favor of revers¬
ing its policy of liberalization.
The announcement had a favor¬
able reception in the British press,
because it is interpreted as an in-,
dication of the Government's con¬
fidence in the

strength of sterling

and in the

prospects dffthe British
The Treasury obviously
afford to give away
dollars through agreeing to

economy.

feels

some

nadian
a

imports

few months ago this would have

been considered
But

bold

very

improvement of the gold
position warrants a high
of

move.

it is felt that the recent

now

reserve

degree

the

expected to be confined to capital
goods. In fact they covered a very

effect

wide range

point of view of the

Most

consumer

items

the

now

be imported

area

have been

far

which

the free list

Europe

some

can

from the dollar

Western

cerned.

goods.

was

con¬

extent, therefore,

America's benefit will be Western

Europe's

loss,

Western
have
tion

henceforth

the

will
competi¬

European exporters
American

face

British markets.

in the

the

domestic

industrial position, the
improvements and the pros¬
pects of further improvements ap¬

justify

pear to

liberalism.

certain degree of

increase

dollar

imports is not likely to mean an
increase in British unemployment.
will

probably

only

slowing down of the

unemployment
decline

Pos¬

been

tributed

at which
continue to
rest of this

pace

will

during

mean

the

year.

sibly the uncompromising attitude
•of the European common market
towards Britain may have con¬

would

which

0 w a v

will

bring

the

decision

end

an.

the

privileged position of Western Eu¬
ropean
exporters on the Brtish
market.
The main consideration that in¬
fluenced
•desire

the

decision

contribute

was

towards

the
re¬

lieving the pressure
on
dollar
imports insofar as it is due to the
unfavorable change in the balance
of payments of the United States.

The utmost importance is attached
in British official circles to the

maintenance of the strength of the
dollar. It is considered to be one
of

the

foundations

the

free

Although

reached

recovery at

has

stage
in

yet

not

British economic

imports is not considered to be

unqualified disadvantage. Ameri¬
can
goods will only be imported
if they are

cheaper than the cor¬
responding British goods. British
firms may feel compelled to lower
some
of their prices in order to
compete with American imported
goods. The result may well be a
slight decline in the cost of living
the
rate

which

past

six

there

British

main

market,
for

reasons

will

cease

has

been

months.

may

stable

Or
no

tries

are

l'lux

any

which might otherwise have taken

will

firms

charge

the

British

there

Whenever

fices and

some sac¬

dollar

im¬

risks, in

recovery,

ports, for the sake of contributing

otherwise

towards

due
course.
During
April
the
proportion of the unemployed de¬
clined to 2.2%. It is widely be-

the

dollar, in
and

strengthening of the

the

interest

the whole free

world.

Britain

have

applied

■:

■:%

end

1958

*•.;•

''•"

;

was

follows:

Debt__

Long-Term
Preferred

Millions

•

$67

Stock

/■/ 22
Com. Stock Equity
(2,495,000 shares);/ 66

J *
45%

/.lotai$J5a- lop
Montana Powerdias been selling

ever,; copper

•'

pknt-to.-expand production at its

Berkely

111161$ U6DeflIllieS

;

Mansfield

Company
its

affected- by

subordinated

Based

cents

perhaps

over

caieildar

for

$4.35

1959,

warm

company

plans to split the com-

gain oi' 12% in building permits
and a 33 % increase in residential
housing starts. Another favorable

Glore, Forgan Opens

The offer expires at

1959.

(EDT)

June 18, 1959.

underwriting

group

by A. G. Becker & Co.,

will

rated,
scribed
The
into

purchase

being built. Also countering the New York investment banking
*acto{s iast year were: fiim, has announced the opening
(1) ^he electric rate increase, of
^-s f|rs^ branch offices on the
which perhaps 25 or 30 cents per West Coast
,
share may have accrued after tne
The former San Francisco and

headed

Incorpo-

any

unsub-

shares.
debentures

Redemption

scaled

from

amount

$23.50

per

prices

105%

effective date, J ul y

convertible

are

stock

common

share.

are

principal

and

including May 31,
decreasing
prices
thereafter, plus accrued interest:
Proceeds from the offering will
be
applied
to
the
payment. of
1960,

and

short-term bank loans.

Capitalization
is

follows:

the

;

companv

smkmg fund debentures due 1973;
mortgage notes;

1,410,718 shares of common stock,
$2.50 par value; and the debentures

currently being offered.

Mansfield

Tire

Rubber

has

its principal
offices and * manufacturing
plants
at
Mansfield,
Ohio.

Net

amounted

earnings

12;

(2)

aP.ned. reduction of neaily $1

and §as'Production. Thus the com-

^rnin-l from"
'

1958

$2,153,000.

"
hale
1957 f° f3-9b, In. 1958. These figV^es 1"cUldeud about 10 5enfs and
13 cents a share, respectively, refultl"S f/'°m
through' ot
tax benefits resulting from use oi
accelerated depreciation,
Generating

capability

the

plants at the end ol
671,000 kw, an increase

company's
1958

was

i_.of 60,000 over the 1957 figure, reAmott, Baker Branch • ■ <
ROME, N.Y.-Amott;BakeF&
Incorporated, members of the

Co.,

New

York

Stock

Exchange,
opening of a
under the

A., Hauser.

formerly,

Investing
thereto

City for

new.

Mr.

Hauser

several?

years,,

for Mohawk Valley

Co^.

Inc.

the

was

securities

for

business

and prior
banking and
in

many years.

New
4

York

sultiig from completion of the
'C^ne^nw (The tota^

an-,firm Puichased power contracts.)

direction

Los Angeles offices of H. E. Work

Have

become

branches of

miD10a
maintenance and othei Glore, Forgan & Co., and will he
operating expenses; (3) gas con- under the direction of H. E. Work
traci rate increases and new gas whf) joins the Glore, Forgan or..^5 mersli ^ g°od^faimmg con- ,ganization.'J
ditions and farm prices, resulting
The gan Francisc0 0ffice, headan 11 4 increase in the value quarters of Mr work, is located
°J crops, livestock, etc., (5) a gam at 100 Bugh street
.
of about 6/« m the value of oil
The Log Angeles office is lo-

$5,000,000 of i.%%

$143,800 of 5Vi%

the price

mon

stock held of record June

p.m.

1957.

estimated earnings of

Two Coast Offices
factor was the operation of a new
SAN
Pulp mill by Waldorf Paper ProdFRANCISCO, Calif.
3:30 ucts; four other lumber mills are Glore, Forgan & Co., Chicago and

showing in 1958, due largely to a

de-

bentures, due 1974, in the ratio
of $100 principal amount of deeach

March 31 were $4.15, an increase

st°fk 3"for^ and stockhold°n the other hand' the lumber ers will vote June 17 on the
industry m ad e a much better proposal.
j.

offering holders of
rights to subfor $5,038,300 x>t

for

abnormally

RubbW,^;^.

100%

convertible

There

torners, and the gas business was earnings ratio would be 16.9. The

stock

common

scribe

Tire

mine.

in revenues from.
rail anct utility, cus-

industrial,

10 dtOCKnOlderS
The

open-pit

were declines

was

might

the

16% in mineral production. How-

chance

(Iffore (lokonfliroc

local manager

which

The company's capitalization at

the

•

Mansfield Tiro
IVICIII9IICIU
I lie

applying

brake

;

that it would obviate the need for

the

increase

average.

prices improved, to- recently around 74%' (range this
ward the end of tne year,>leading year 78-63and in 1958 71%-45):
accordance with to. increased activity in the Butte Based on the increased dividend
trade traditions. mining, area, and Anaconda com- rate 0f $2.40 the yield is 3.3%.
%/%// Pleted a. large pressure-conveyor Earnings for the 12 months ended

the country's free

the

increasing

the

mil-

In 1958, the
recession in the mining industry
(resulted ^iiw a decline of nearly

liberalization, the British will
liberalize, even if it means sacri-

office

half

for

nounce

double

from $91

iects of; depressions.

the

mentality which is deeply
ingrained in the British character,

of.Edwin

rifice

yet
free-

were

manifestation

branch

would

business

increased

--v.,

trade

some

decline

for
the

all this, it is neeespoint out in conclusion-

that the concessions
other

year

Despite the cyclical nature of
the lumber and mining industries *
j11 its area Montana 'Power has
an-*khowm■•good resistance to the ef-

/V --

Having'said
sary

last

available

are

for/the '1 Montana

seruSafn^yb'dea id

national

of 'Jy

balance

statistics

state

,m0^t

permanent

1956,°the

and

supplies

and California markets."
- J
1
The company /im 1958 joined
with Pacific Gas & Electric in the
Tatter's pro j eeU to * import natural

gas from Alberta. Montana Pcjwrer's share of this gas would be
lion-to $243 million annually, uu 10-5 billion cf.la/year (compared
168%—the largest percentage gain with 1958 sales of about 34 bilin the Pacific Northwest and al1i0i? cf->the

the.

large.

vya"£"-

American

payments

to offset the inflationary ef¬

be worth while to make

become

the

dividends

the

acquired

way

But such

capital account.

place.

considered to

1947

which

velop

industrial

n™

has been gaining rapidly. Between

fect

bids

influx is regarded in any case
a dubious blessing, because the.

diversified

come

while

these] indus-

Southern Gas Co: project to de-

ing and tourist business; there is

concerned This; of course]

official

principal industries
mining and smelting, farming

will tend to reduce the dollari in-

for

increase

Montana's

to 'also

access

one

take-over

far

world's economic supremacy over
the Communist world.
In British
circles

19%.

prom-

great many Ameri-

industries will have

the

which the Government

begin to think in terms of
applying the brake to prevent in¬
flation, a moderate increase in

index

but

take-overs,

that

Now
can

recent

concessions

ucfnnntc! frir ahnut

r;_

common

the

Cnntior urhiV'li

to. the proposed Alberta Trunk
Line gathering system. If further
ised to keep a watchful eye on the are
development substantiates this
situation which has been causing
apcj livestock raising, oil and gas discovery, the gas should find a
some uneasiness in many quarters,
production and refining,; lumber- ready market in the Alberta &

bentures

optimism.
From

Canada substantial progress was
also recorded in oiB drilling in
Qnctatfhpu.'an Tho annual roirnrt

feelings

such

vent

Ca¬

Until

Britain.

other services 1%. The most
take-Hip-'portant customer is Anaconda

i.i-w-Ii'icUvfol

Ofr-ilicVi

Government

can

increase in American and

•

commit itself to measures to pre-

the

tariff

ible

goods.

They were

28.

May

United States would abstain from

increasing

firms

bids^of

mixed

[■'*" transfer
equities

decision was taken
the assumption that* even in
absence of an agreement, the

tide

abnor¬

Of course, the

Einzig

unilateral
the

spite of its recent

mally high in

it should

not

un£rftployment
to

coinpany also sells power to operiL*'ried on exploration and develop¬
#te 440 miles7;0felectrif fed] rail- orient work to increase its own reconfyrbad; Electricity contributeSnearly serves, which in .-1957 provided
ofder to'' 70%.. of revenues, patural'gas! 29% 70% qf total gas requirements] in

firms have

industries,

British

some

considered

still

decline.
Paul

likely to affect employ¬

moment When

liberali¬

the

ment

There are also good, expansion

the

Various American

markets.

underrated. Many of the

are

patt'of

substantial

serves, a

state of Montana with electricity^, possibilities in the gas division,
and smaller areas, with gas. The In 1958 the company actively car-

establish themselves in the British? and

sacrifices is

the

British

trol of

appliances, radio and
television sets, Gramophone rec¬
ords, recording tape, automobiles,
etc., will be competing against the
corresponding British goods, and
in some instances at any rate, the
American
prices are distinctly
competitive. In addition to its ef¬
fect on the balance of payments
with the dollar area, the conces¬

zation insisted
that

extent

Company

;•

Ajrrierican industrial

ment forf

household

sions

con¬

cessions.
Opponent's of
such

The

not to be

terests to seek to buy up

Involved

Sacrifice

Stresses

official

The

—

liberalizetion of dollar imports is that it is
expected to reduce the induce^

OVer

LONDONj

Montana Power

British

British took this step is seen

announcement that controls on the

■i

Another aspect of the

evidence of going toward traditional free-trade whenever
there's half-a-chance, despite sacrifices and risks.

By OWEN ELY

The ef¬

7: :7* Montana
Power, > with .annual, steam „ capacity within the next
ne
May Discourage Buying Up of ^ .'jeyenues ;of .over,;.;'$44^million,"'Tour or five years.';

end Western Europe's privileged

British cost-of-living. That the

employment.

change.

dampening of U. S. purchase of British firms and check

Utility Securities

expansion of produc¬

the, liberalization might
well be a postponement of such a

position in British markets and fear of increasing U. S. pro¬
tectionism. Other effects of this move, Dr. Einzig detects, may
be

overfull

fect

improved sterling position and the real
in recent trade liberalization, correspondent

balance of payments, desire to

Public

tion, in order to avoid the return

of Britain's

sacrifice involved

might feel the time

for taking steps to slow.;,

come

down further

By PAUL EINZIG

Aware

the per-..

when

and

Peak load was only 515,000 kw.

cafed at 650 Spring Street with F

Alden Damo". als° formerly of
-H«,as resiE- Work & Co- serving r
d

t manager
1\,
Merit ,
Investors Opens

BROOKLYN, N. Y.—Sidney Os¬
good has formed Merit Investors

C°* with offices at 815 Broadway,
engage in a securities business,
n

Maryland Sees. Branch
WASHINGTON, d. C - Maryland Securities Co., Inc. has
opened a
Wisconsin

branch

office
under

Avenue

4750

the "di-

recti0n of Conrad A. Lippman.

compared with 539,000 in the previous year,/ 528,000 m '1956 and
517,000 in. 195o.-Thus, while the
supply picture now looks " very
good, the company is making plans
to redevelop the Thompson Falls
Hydro Plant to add 35,000 kw.*,

Hammill & Co. has opened an office at 2235 Church Avenue, under
the management of Eugene Rosen-

and;is also planning to add more

field.

Shearson, Hammill Office
tju^AiztW

BKOOKL.YIN, N. Y.

t>nearson,

Volume

189

Number 5852

The Commercial'arid Financial Chronicle

Princeton,

jboim
.TcGi

the

area

around

this historic educational

center

one

the

country's foremost communities of scientific research.

■

;

To { ><r;
5*r>ri 'Lj

Of]

J: Todoy

(2531)

RCA Electronics

•

helps build

capital of science

a new

-bjo'U

Princeton, N. J.

*rfl

Explorers

once

looked for

the mountains and the
are

Today,

seeks

r:-

ot;>0

/"A

frontiers

out in

space or deep, inside the atom.
explorer is the research scientist. He
ideas, new knowledge.

•

■

new

Research has been

it''

■■

ever

since it

was

important activity at RCA

founded in 1919. And

t
bns

».

vhqW

eighteen years
united in the

ago many scattered operations were
RCA David Sarnoff Research Center, which set the

•

od, I(f"
>['i o '/■/

[fir

-bGO:i

tists

and

research

electronics into service
•and with such

success

J. Here, RCA provided gifted

men

with

CORPORATION

AMERICA

■

The RCA David Sarnoff.Research Center, dedicated
of

-•Jut;;
■n:r
.

-yu.
i

•10

electronics—

the clearest

CCr/l

means

national defense and the electronic

•20

ever-broadening front,

whether related to international communications, to

ri:iv

of scien¬

achievements^ put

Princeton, N.

RADIO

s'-t- j:

whose

that RCA

Vi'

area.

grown a reservoir

men

climate in which research

research have been erected in the
From RCA's vision has

b'4r>r>
—{£

then, many other institutions dedicated

performance of television in color or
black-and-white, radio and stereophonic music or to

•

-To

fine facilities—and created

thrives. Since

pattern for a new capital of industrial research-at

our

The modern

f,n,t

somewhere

opportunities beyond

new

oceans;

IdOL:.:

the first industrial

laboratories established

in 1942,

was one

in the Princeton

area.

conquests in space.

The Commercial and Financial Chronicle

(2532)

although

News About Banks
NEW BRANCHES

were

than

York

New

recent

the

announces

appointment of Mr. Edward
monds

Petroleum

the

Sy-

Depart¬

ment, part of the Bank's Special

their
stock now held. Chemical Bank
shares
now
outstanding
would
remain outstanding as shares of
institution for each share of

Industries Group.
*

v,''

The First National City Bank of

Chairman

appointment of John C. Macy as
Deputy Comptroller,
Mr. Macy joined the First Na¬
tional
City Bank in
1927 and
served in the Comptroller's Divi¬
sion as Assistant Comptroller un¬
with

became

associ¬

Operations

when

1956

Group

the

from the four
is

taken

visitor?

The

York.

of the world

corners

are

senior

supervisory officers of The First
National City Bank of New York's
in 27„ countries

branches

have

attend

come

who

conferences

held by the Bank for administra¬
tive purposes and to consult on

Vice-Chairman of
the merged Bank,

Perkins,

Chemical

Vice
Bank,

bank's

the

fact

current

that

em¬

"Things

Are Different Overseas Today."
Visitors attending the confer¬

Vice-President

Donald,

Di-

and

rector of New York Trust, would

Vice-President

Senior

merged

the

Bank.

the

bank's Overseas Division in
New York, are also taking part in
the conference which began May
30 and will run through Sunday,

June
more

is subject to approval
State
Superintendent of

the

Federal

also

Reserve

subject

ap-

proval of the stockholders of the
two institutions, to whom it will
be submitted

promptly

devoted

to the discussion
of administrative matters
relating
to the bank's international busi¬
ness

and to the

continuing
of

development of a
of expansion

On the basis of

the

1959,

31,

would

as prac-

figures at March

merged
the

have

meet the

great

increase

in foreign trade which
anticipates in the coming
decade. In line with this program,

the bank

the

bank

offices

has
the

recently
Federation

laya and the Union

opened
of

Ma¬

South Af¬

rica. Application for establishment

time

the

.Thomas
a

nounced

Farmers Bank was an¬

San

Assistant

Bank

Franicsco,

*
of

Vice-

Ameriea,

Calif.,

was

an¬

nounced for Alan V. Bartlett, head
of the statistical and research sec¬

the Municipal

partment

the

Bond

head

De¬

office

research section since
«

1953.

•;

■

agreement of merger has been \ Establishment of a branch in
signed by the Board of Directors Kuala Lumpur, capital of the Fed¬
of both institutions, providing for . eration of
Malaya, by Bank of
(International), wholly
the
exchange of two and one- America
subsidiary
of Bank of
quarter shares
of - the Farmers; owned
Bank of the State of Delaware for America NT&SA, was announced
in San Francisco by Russell G.
each share of the capital stock of <
the Peoples National Bank.
Smith, Executive Vice-President,
An

has
been
Director of the Colonial

New
headquarters of the Bank were
opened at 79 Pine Street, formerlv
Street.

Alton

of Farmers and J.

O'Day will become

sistant

Cashier

the

been

The 25th
0f

The

Vice-President,
new

Street.

- *

Annual

Dinner-Dance

and

for June 25 to approve

Trust

Company,

been

announced

New

York,

has

Horace C.
Flanigan, Chairman of the Bank's
by

Board of Directors.
*

Robert
an

McC.

Jordan,

the

American ' National

Mount

Company,
named

New

He will

1952.

Vernon

York,

Assistant

has

Vice-

of the Board.

which

with.

The

Company.

continue

ciation with the Bank
of

the

Mount

Board.

formerly

President, it was announced May
25, by William H. Moore, Chairman

The latter institution merged with
The County Trust Company in

sory

Assistant Treasurer in Bankers

Trust
been

Bank

ber
*

Office

officers

his

Vernon
'

assomem-

Advi-

]

scheduled i to

begin June 8, with tentative com¬
pletion date planned for Jan, 4,
1960.

•

;

The bank now has 18 offices in

it must also receive the ap¬ California, Oregon and Washing¬
proval of the State-Bank Commis¬ ton. Assets at the end of the first
sioner and other supervisory au¬ quarter of 1959 totaled $629,661,'
thorities before becoming effec¬ 339.
3

and

■

Merger of the County National
Bank and Trust Company of Santa
Calif.,

Barbara,

into

Anglo National Bank,

CrockerSan Fran¬

that

has

received

permission

from the Comptroller of Currency
in Washington, D. C. to open an
office in Greendale. This new of-

the

The

•

Crocker-Anglo's
Santa
Barbara
Line, a new form of. per¬ Main office, and the County Na¬
sonal credit recently inaugurated tional unit in nearby Montecito, its
development of the Public Bank
Credit

Montecito office. These two offices

by the Bank.
*

increased

Merger certificate was issued
approving and making effective,
as of the close of business May 15,
the merger of The Ridgedale Bank
& Trust
Company, Chattanooga,
Tennessee, with common stock of

common
capital stock of
Johnsonburg National Bank,

the

tem

total

Crocker-Anglo
of

units

sys¬

communities, and brought 88-year
old Crocker-Anglo into the South¬

California

ern

area

for

the

first

time.

{

The Worcester County National
Bank, Worcester, Mass. announced

The

company.

;

Streets in Modesto.

Construction

the merger

•

Schlesinger to the subsequently merged
Board of the Empire Mount Vernon Trust
Manufacturers

President of

cisco, Calif., was approved by the
respective shareholders of both
institutions
in
separate special
meetings held in Santa Barbara
Dime of Brooklyn is observing idend will be payable to stock¬ and San Francisco on
May 26, it
1959 as its 100th anniversary year, holders of record at the close of was announced
jointly by W. W.
business May 26 on the basis of
> *
*
*
one
share for each four shares Crocker, Chairman of the board
Charles G. Sposato, Vice-Presiof
Crocker-Anglo,
and
Joe D.
dent of The County Trust Com- held.
it
*
'
*
Paxton, chairman of the County
pany, "White Plains, N. Y., at the
National.
Public Bank, Shelby, Mich., has
Bank's Mount Vernon office, reThe merger was effective at the
Herbert L. Bobke to
tired May 29 under the company's promoted
assistant cashier, it was announced close of business on May 29, sub¬
retirement" plan.
He
started
a
ject to the final approval of the
banking; career that spanned 50 by Joseph F. Verhelle, President.
Mr. Bobke will assist in the ad¬ Comptroller of the Currency.
At
years in 1909 with The First Naministration of the consumer loan the opening of business on June 1,
tional Bank of Mount Vernon,
the
County National
office at
department.
In 1920 Mr. Sposato joined the
and
Carrillo
Streets
is
Mr. Bobke will also help in the State

Theodore

and J

tive.

Dime

present

charge of the

Fulton

Adams,

Peoples

The Bank of California, N. A., an¬
directors of*
nounced
that
the
contract
has
National Bank will
been awarded for construction of
constitute the Advisory Commit-;
the Bank's new building at 12th
tee of the Farmers Bank for Lau¬
The

Bank.

the

Walsh,

elected

will be

Edwin

Farmers

has

as manager.

As¬

rel with the same authority and
power to
make loans as in - the
formerly an
.
Assistant Vice-President in Charge past.
of the Bedford Office of Lafayette
Special meetings "of stockholders
National Bank of Brooklyn, N. Y., of both banks are being called

Fenton

staff

The appointments of Joseph Leff

■

The Hamilton Na¬
Bank of Chattanooga, Chat¬

$350,000
tional

into

officers

All
of

staff members

and

tlhe County National Bank will

continue

their various

capaci¬

officers and staff members

tanooga, Tenn. with common stock

ties

was

and

will become

$3,000,000.

effected
title

The

under

"The

merger
charter

the

Hamilton

National

Bank of

Chattanooga," with cap¬
of $3,500,000, divided
into
175,000 shares of common
stock of the par value of $20 each.
ital

stock

<•

Directors

Citizens

Crocker-Anglo.

Mr.

Paxton

Chairman, and P. S.
Belford, Vice-Chairman, of Crock¬
er-Anglo's Santa Barbara advi¬
sory

committee

which

will

composed of the current directors
of

the

County National.

The County National Bank was
National

Bank, Los Angeles, Calif, have
approved a plan for a stock divi¬
Directors of Chemical Corn Ex¬
Mr. Jordan joined Bankers Trust Johnsonburg, Pa., was increased
dend and for raising new capital
change Bank, New York and of Company in 1953. He was named from .$150,000 to $300,000 by a
which would
bring the bank's
The New York Trust Company an
official of Bankers Trust Com- stock dividend, effective May 19. total
capital funds to approxi¬
have unanimously approved
plans pany in 1956.
(Number of shares outstanding: mately $39 million.
Under the
for the merger of the two institu¬
*
*
*
,;c
•
12,000 shares^ par value $25.)
proposed financing program,
tions under the name of Chemical
The Bowery Savings Bank on
•
*
shareholders
would
receive
a
Bank New York Trust
Company, June 2 was 125 years old, hav^g
Lucas E., Finney, Vice-Presi- stock dividend of one share for
Harold H. Helm and Adrian M.
opened for business June 2, 1834, dent of Western Pennsylvania Na- each two shares held and, in addi¬
Massie, respective Chairman, an¬ on the Bowery at Grand Street.
tional Bank, McKeesport, Pa. has tion, the right to purchase their
nounced on June 2.
Fifty depositors left $2,020 in been named to the Bank's Man- prorata number of "210,000 new
Holders
of
New
York
Trust the Bowery's safekeeping on the
shares on the basis of one new
agement Committee,
stock
would
Teceive * one
and first
day. The Bank was open
Mr. Finney, who is supervi- share for each five held after the
three-fourths shares of the merged two
evenings a week at the start, sor of community offices, joined stock dividend. The definite price
*

Promotion

President

the two. institutions.

Vice-President

Kelley

Trust Company, New York.

institution

nationally.

Branch
*

proposal. ;V

as a

of branches in
Simultaneously, Mr. Moore made fice will be at 460 West Boyleston
Epuador are now
pending. Additional branches have known the appointments of James Street, and is the Bank's 15th
A. Dalton, of the Delancey Street office and the sixth in the city.
already been opened in Argentina,
Uruguay, Venezuela,
Singapore Office; Frederick G. Lauer, Jr., It is expected to be open for busiand Mexico, countries in which of the Fifth Avenue Office, and ness in the fall.
the bank has been
*
*
*
operating for Francis D. Nash, of the Wall Street
many years,

•

Club, composed of
merger capital funds in excess of 600 officers and employees of The
Stockholders of The Northern
$385,000,000 and total resources i>ime Savings Bank of Brooklyn,
in excess of $4,300,000,000, making n. Y., was held
May 30 in the, Trust Co., approved an increase
it on the basis of total resources Garden
in its capital stock from $10,000,City, Lfl., Hote}. Included
the third largest in New York and in
the
evening's
entertainment 000 to $12,500,000 and the issue of
the fourth largest nationally.
program
was
a
special feature 25,000 additional shares of stock
In their joint statement, Messrs. centered around the fact that The as a stock dividend. The stock div¬

program

its facilities to

to approve the?

San Francisco.

The election of Albert F. Tegen

office

7, at the Westchester BiltAdvisory
Country Club. The sessions State
Office

will be

at 90 Wall

The plan

include: Mr. W. M. Simmons,
Vice-President, Johannesburg,
South Africa; Mr. J. B. Arnold,
Vice-President, Buenos Aires, Ar¬
gentina; Mr. L. W. Tiers, submanager,
Singapore; Mr. H. M.
Sperry, Resident Vice-President, Helm and Massie
said, "The busiHong Kong; Mr. Harvey Gerry,
ness, resources and management
Vice-President, Paris, France; Mr. talents of Chemical and New York
R. J. Breyfogle, Vice-President,
Trust complement each other in
London, England; Mr. J. ,C. Good- such a fashion as to make their
ridge, manager, Cairo, Egypt, and
merger in the best interests of
Mr. Robert M. Henry, Resident
the public as well as of their
Vice-President, Manila, and Har¬ customers and shareholders. Their
old Swenson, Assistant Vice-Pres¬
combination
will
make
for
inident, Continental Representative, creased and more effective comFrankfurt, West Germany.
petition not only in this comSenior supervisory officers from
munity but nationally and interence

positions and salaries, Willie M^«el^cted

tieable.

the

shareholders will be held June 23

of
Wilkins-* tion

Bank, of

burg from 1928 to 1930.:

board, prior to the
than $37.50

at pot less

thaWdl otta^officers
employees
of both
banks

This is

assistant,cashier

and

National

offering,

andViot more than $40 i>er sham
A special meeting of the bank's

planned

for

1928,

First

ter of the

depositors from all over the world.

would be retained in their present

and

phasis

cashier of the

shares will be deter¬

new

and

such, these five would constitute
the senior executive officers of
the
enlarged
institution.
It
is

Board.

sible

was

the

mined by the

International Banking.
* -iV
Ira
Lewis,
Executive
ViceThe branch opens June 1 at f 1
Director of The Marine Mid- President of the Peoples National
Cross Street, in the business sec¬
land Trust Company of New York Bank, will become a Vice-Presi¬
tion of the capital city, with J. H.
was
announced by George C. dent of the Farmers Bank. How¬
Textor,
President, following a ard R. Elliott, now Cashier • of Schroeder, former assistant man¬
ager, of the Osaka, Japan, brand),,
meeting of the Board of Directors, Peoples, will become an Assistant

Vice

Bank. As

Chairman of the merged

Banks

of the factors respon¬

oon qe

would

and

President

foreign trade problems.
Mr. George S. Moore, Executive
Vice-President in Charge of the
Bank's Overseas Division, stated
that the growing interest, on the
part of American companies, in
export business and in manufac¬
turing abroad was one of the pri¬
mary reasons for the conference.
one

$704001

« ?724,»81,280.»5.

The

Earl B. Schwulst has been PresChair- ident since 1949.

Grainger, President, and

continue

place this week in New

York

New
a

board

the

Isaac B.

man,

An unusual meeting of bankers

•

-.q-q

industrial workers on the Lower
East Side Today the Bank has

Gilbert

^jvjdends

Trust,

would become

Finney

State Bank of Elizabeth;from 1918

Thursday, June 4, 1959

Mr. Bartlett joined the Bank in
wars, panics,
A proposed merger of the Farm¬
well as periods of ers Bank of the State of Delaware 1943 after several years in the se¬
curities and municipal bond fields
The grand total of and the Peoples National Bank of
paid through April 1, Laurel under the name and char¬ and has headed the statistical and

Bowery was started by
Quakers as a thrift institution for
shipyard machine shop and other

President

man¬

supervision of the combined
trust
departments of the
merged Bank. Hulbert S. Aldrich,

sistant Vice-President.
*

Chan man

Committee and have

general

of the Overseas Division as As¬
*

Bank.

1834, through

since

depressions,

become

would

Massie

Mr.

570,000 men,

an<J children have^l,560,000.000 on deposit at the Bowery,
The Bank has five offices and a
staff of 622 Dividends to deposi¬
tors have been paid every year
women

exeeutwe prosperity.

.ehmf

of the merged

ofliccr

of the Trust

ated

«o

would

and

New York has also announced the

til

Helm

Mr.

'*'V;.''

institution.

tee merged

1951,

year

Today more than
City Bank of

March,

CAPITALIZATIONS

The First National

WPNB

ager of the bookkeeping depart¬
ment. He becaihe Vice-President

there were no in charge of the Smithton Office
paid employees. Weekly volunteer in 1954, and assumed his present
groups of three trustees each, han¬ position in April; 1958;
dled' the Bank's business. Benja¬
He
is also
a^member '-"of-i the
min
M. ; Brown
was
the
first Planning, Personnel,
Deposit and
President. Deposits at the end of Loan
Forecast, and Contributions
1834 totaled $65,111.
Committees of the Bank.

Bankers

and

REVISED

eve¬

added "to re¬
deposits from females." For

CONSOLIDATIONS
NEW OFFICERS, ETC.

Thursday

1835

ning^ hours
ceive

opened in November, 1875 as the
Santa Barbara County Bank, and
was

granted a national charter
later. In 1920 the insti¬

five years

tution merged with the Santa Bar¬
bara Trust Company, a separate
but

affiliated

adopted the

institution,

name

has since been

and

under which it

operated.

New Dinldns Office
BALDWIN, La.—Ladd Dinkins
& Company has opened a branch
office in Baldwin under the

agement of H. H. Dinkins.

man¬

Volume

V:j

189

Number

5852

The Commercial and Financial Chronicle

(2533)

supply of iron

■

ore

i.
I.

t1'.

t.i

'»Ti

Carrying

; '.'i

of about 31,000 tons of iron

cargo

ore,

this large

ore

carrier is being unloaded at the

deepwater docks of Bethlehem's Sparrows Point Plant, the largest steel plant in America. From this
i

i >l!'

strategic tidewater location just southeast of Baltimore, steel flows to the Eastern Seaboard, and to

Gulf, Pacific, and
•

;

overseas

Sparrows Point has
more

ports.

!■

annual capacity of 8,200,000 tons of steel ingots. That's sufficient steel to make

than 214 million automobiles and enough left over for millions of such useful products as

kitchen ranges, and air conditioners

coat hangers, "tin" cans, Venetian

blinds, and tire chains.

refrigerators,

* '■

(2534)

The Commercial and Financial Chronicle

—inflation,

The Inflation Problem

choice

the

these

tween

lies
is

courses.

Our

The

Offered to Investors //
■,'/

first

Federal

cut

expenditures

national

position

the

and might well lead the
fuii convertibility by many west-

in-order

ern

•

anced

budget,
surplus

bal¬

/ raised, since the prime bank rate was increased from 4% to 4/2%/ /
:/.and this created a situation in which there was to much leawayj

Construction costs, for 1959

poses.

Fed is Handicapped

only

the repayment of short-term bank
loans and for other corporate pur¬

countries.

riot

produce

Net proceeds from the financing

;
V The increase in the discount rate meant that a move which f
dollar, will be used by the company for '* had been expected for two weeks had become a reality./It
was/
way to construction
purposes;... including /.merely a matter of time before the Central Bank rate would be

substantially
to

erating

stop to inflation in sisting
in
the
elimination
the
United
States,
two
major unnecessary
expenditures.
steps are indicated as fundamental, would also strengthen the interThe

significant in either direction and this can [

been

it has been at in the postwar years.
The action of the monetary authorities in raising the discount j
Company First Mortgage
rate gives confirmation that the prevailing monetary policy is to ^
Bonds, 5V4% Series due June, 1, /be continued for the foreseeable future. Although these interest/
1992, at 101.579% and accrued in¬
rate changes have been well taken by the money and capital mar- y
terest, to yield 5.15%. Award of ;y kets, a rising trend in money rates is not usually considered bull- the bonds was won by the group at
ish for (yields) of fixed income bearing obligations.
of competitive sale May 28 on a bid
It of 100.43%.
In Line With Expectations
/

up.

debt reduction.
putting

the capital market appear to have j

likely be put down to what is known as the process of find¬
ing one's way. The increase in the discount rate last week from
3% to 3//2% was in line with expectations, although some money *
market followers were of the opinion that it would be pushed up >
to 3%%. The present Central Bank rate of V/z% equals the high /'

Co., Inc., are joint managers of
underwriting syndicate > which,
on
May 29 offered an issue of
$25,000,000 Southern Electric Gen¬

market and

money

most

Lynch, Pierce,' Fenner
& Smith Incorporated and Blyth

Thus, to end inflation, he
favors restoring the gold standard but qualifies this, however,
with the need to first cut Federal expenditures to permit some
In

Governments

pretty well adjusted to the recent changes in the prime bank /
and the discount rate.
The movements of yields and prices A

far have not

Merrill

System for the United Stales," Dr. Bradford doubts monetary
authorities can, in practice, withstand pressures if they were to
curb increase in money and credit unless there is a convertible
gold standard to back them

been

rate

banking texts succinctly offers
ending price inflation. One of eleven economists
participating in a study on "A Proper Monetary and Banking
on

By JOHN T. CHIPPENDALE, JR.

Southern Electric ./

Author of several money and
his views

Reporter

$25 Million Bonds of

Finance, Lehigh University,
Bethlehem, Pennsylvania

Thursday, June 4, 1959

And How to End It
By FREDERICK A. BRADFORD*

be¬

the American public to make that
choice.
''.'V

Head of the Department of

in favor of the deposit bank loaning rate. ,To be sure, there has
at $59,854,655; for
been no pick-up in discounts and advances at the Federal Reserve :
$49,543,733; for 1961 at
Banks, because the member banks of the system have been able$33,175,539, and for 1962 at $7,//so far to meet the needs of its customers without resort to borrow-v/
099,641.
/••/////.'•■.//'•
ings from the Central Banks.
,.;//'//
|.
The bonds will be redeemable at
//
Nonetheless, if the discount rate had remained at the 3% level,*;1
regular redemption prices recedwhich was out cl line with the rest of the lending; rate structure/ /
ing from 106.83% to par, and at
the temptation on the part of the commercial banks would have ./
special redemption prices ranging;
/•/been, very great, to borrow, at the low Central Bank rate -and to
from ' 101.579%
to
par,;/* plus
make
are

estimated

but

Return

receipts
expendi¬

over

tures

to, and rigid adherence

to, gold convertibility would help
to

inflation

curb

the

via

the

much-

wage-cost

publicized

spiral.

end that some

Theoretically,
this
could
be
stopped by tfH* monetary author-

reduction may
be , m a d e in

ities through curbing increases in
the quantity of purchasing media,

the

h uge

practical

matter,

however,

I960

these funds available to their customers at the much higher

•

accrued interest in each

case.

prime bank

,
.

Federal

debt.

against

pressure

such

Southern

Electric

Generating
would be too great unless the legal Company was organized in May,'';
The second is
Dr. F. A. BrauK>rd
to restore full
requirement of convertibility were 1956 as an Alabama public utility
convertibility of the dollar in gold. present to act, as Mr. Bryan puts corporation. All of its common :
I place the reduction in Federal

expenditures

first, because a re¬
turn to convertibility would not
he
be
successful
for
long
if the

it,

shield

authorities

behind

course

the

which

might

Turning

now
to the budget,
really called for is not
balancing of receipts ana
uaiaucuig-ux receipts and

'//' /'/•

! Rate Now Equals Post-War High ;//
The

increase

the

discount rate

/■

>•'

)
f/

3/2%, returns it/to the

peak level of recent years, which prevailed from; August to NoBecause the Central'Bank rate has, been upped to

stock is owned by Alabama Power

/ vember, 1957.

honorably Company
and
Georgia > Power
Company in equal amounts. As a

retire.

'■■'/ /// •"

race.

the old

postwar high of 3 VzffcX it is not /expected, in most quarters

that!there will

subsidiary of these tvyo compapj /quite

be another

up^rd-nevisibnv^f tfe

for,;,

a' period of time.. It is evident that .the trend of business and

Southern Electric Generating
/economic conditions along \vith ithb;inflationary forces are going j
Company is a part of The .South-;,
—
other hand, convertibility would expenditures, but an actual excess ern Company which owns all the :; ^Tp^ddtbrmine the future^^^cburs^;;6|!fhe/C^ntfaI Bank fate. There is \
«no question but what thejindustrial pattern is very strong, but as/
itself be helpful to the govern- of receipts, the surplus being used outstanding
common v stocks ; of /' long as the expansion phase of the economy which we are in now
\
ment in
an
effort to return
to to reduce outstanding government Alabama
Power
and /Georgia / does not
generate into a boom period, it is not at all unlikely/
fiscal sanity. In the latter con- debt. Even with a just-balanced Power. Southern Elective Generthat the. discount rate will remain at its/current level of 31/2%/
j
nection, I would like to quote budget, the Treasury's debt man- ating is constructing a steain-elecfrom a recent address of Mr. Mai- agement problem is a thorny one. trie
generating station on .u tile
:'/ Pressure on Rate Structure to Continue
/i/; ^
colm
Bryan,
President
of
the The vast amount of necessary re- Coosa River near Wilsonville, Ala.;
Federal Reserve Bank of Atlanta: funding not only poses difficulties with an installed capacity initially ,//•/{" There' is no question but the latest increase in the Central
Federal Government continues to
successive

run

deficits.

■

Cites

Malcolm
The

the

Bryan's

what is
merely a

for the Treasury, but may also at
' times interfere with credit control

//.
Views'

of four units, ea£h <pf 250,000 kilo-

Bank

rate

another expression

the Federal Reserve

Board

watts nameplate rating, ..ithe first

that the policy of monetary restraint or restriction is going to be;
//continued. It is also an anti-inflationary move, and it is evident
.

policies of the Federal Reserve, such unit being scheduled for inj
tpat if there is to be a resurgence in the. inflation psychology and j
If the task of borrowing new itial operations in April, I960, ;the'
//this is to be translated into a run from the currency through the i
and
personal freedoms are money is added to existing re- second in July, 1960, the third ini
purchase of tangibles, there will be tighter money conditions and
utterly dependent upon a free funding requirements, the Treas- 1961 and the fourth in 1962. The
4economic society, will destroy its ury's problem is intensified. The output of Southern Electric Gen- //this will bring with it a higher Central Bank rate. The big demand
for credit so far has come mainly from consumers but there is also
freedoms before it succeeds in threat of inflation engendered by erating's plant will be sold to Ala.

that

the

danger, I think, is
world, those politi-

free

cal

finding a monetary standard appropriate to a free society.
."
\ ".
The main problem facing
.

the

modern

for

world

monetary

its

standard

lies

precisely in the difficulty of making the sovereign itself amenable
to disciplines."
"We

hardly going to find
a
monetary standard having more
than
ephemeral
and
transitory
significance unless we face up to
are

the fact that it is precisely in the

difficulty

sovereign
now,

the
a

himself
the

past, the

monetary

language be
be
be

said

disciplining

that

such

inept, let it
phrased. Let it

must

standard

provide in

can

had,

personal

fundamental

inflation

fears

and would
stimulate the lagging interest of

individuals
ings Bonds.

United States Sav-

providing

monetary

standard of the sort described
by
Mr.
Bryan
as
essential
to
our
freedom
that
a
return
to

Conditions for

nnlirv

policy

Gold

rp_

Standard

convertibility
this

gress

indicated. A

direction
in

would

resisting

pressure groups

aid

move

Con-

demands

for funds, thus

?' wblle scju"d fmanIS essential, the pur-

suance of such a policy would be
aided materially by a return to
gold convertibility. The latter, to
be
successful,
would
entail:
a

serve, but with the legal necessity
of maintaining a fixed minimum

talk

by Dr.

Gamma Mu
inflation threat,

Bradford

forum

Bethlehem,

the

Pa.

$273,000

debt;

ments

the

free

flow

capital between
States and other

the

goods
United

rtVnpT
Avnet

n iPnrnnirc
Electronics

nounced

June

of 175 000

in™

Corp.

that

shires

its

before
current

economic

governmentally planned
and

return

free

enterprise. Barring coneventually disastrous

tinued—and

a need
for loanable
the interest rate pattern.

create

Corporations Remain Highly Liquid

spite of the need for funds to finance the expansion in their own
business, most corporations still have ample funds and these are
still being put into the shortest, most liquid Government obliga¬

common

an-

tions.

and

oversubscribed

Kiel/

together; with

company,

seven subsidiary companies, is-enin

gaeed

turing

the hnsiness nf maniifar-

distributing

and

-Other'members
writing
Treat
ties

John
&

Coro

Inc

•

under-

Amos

Bnmo

membership

the

Stock Exchange

and

the

New

following

founded a year ago by
Dugal of J. B. Maguire &
Co., and several associates to fur¬

ther

the

bers

officers

were

among

Treasurer,

with

York

JunJ 4th
mem-

Stock

Lx-

change.
Partners are Frederick
M. Mayer and Robert Mayer.

for

the

ensuing

Ellsworth

year.

Abercrom-

through

Clement

McCor-

mack, J. H. Goddard & Co., Inc.;
Governors,
Richard
E.
Murray,
May ;& Gannon, Inc., and John
M.

Bleakie, W. E.

were

elected

Hutton
two

year

Co.,

term.

James H.
&

Odell, Chace, Whiteside
Winslow, and Paul D. Sheeline,

Paul

D. Sheeline & Co., are con¬
tinuing members of the Board of

Directors.

securities

with

business

exchange' of ideas

the members.

Joins Spencer Trask

mem¬

over-the-counter

listed

meetings

leaders

dents,

knowledge of its

regarding
certain

and

bie, Burgess & Leith; Vice Presi¬
Donald H. Whittemore,
Whittemore
&
Co., and George
R.
S. Denton,
Denton & Co.;

New

York

Financial

representatives

was

Lench

Exchange, will also become
bers

Boston

Victor

President,

aenmre

the

Associates, Inc.

ates

elected

Mayer will acquire
win

Research

Boston brokerage firms, the
Boston Financial Reseach Associ¬

ArthurBS,"

maver

meeting of

Made
from

Freneh

Co^

3 d ArthUr B' HoSan*

xtuuen
Robert j
J.

rate.

BOSTON, Mass.—At the annual

The

To Be N.Y.S.E. Member,
-

discount

Qroup Elects Officers

SeSni

HelW

Inc

and

the

Aetna

Stanlev

•

Kaolan

Crawford

„er

?- '
Inc.

include-

groUD

the

Boston Fin. Research

electrical

dstllbL ting electrical

Droducts

that the rates for short-term Government issues

Co!

Incorporated made the offering,
The

means

headed

erouo

This

will not go up too much even though the whole pattern of loaning
rates have been advanced through the increase in the prime rate

stolk

countries,
, JT. ]VL Mayer & Co
30 Broad St!
would mean the elimina- members of the American Stock
a

economy

would

it high rates for short-term Government securities, but there are
indications yet that there will be a sharp lessening in the de¬
mand'for the most liquid Treasury issues.
It is evident that in

offering

as-

This

more pressure on

The recent upward revision in the discount rate brought with

Corp.
Offering Oversold

and

■////

gold reserve ratio; prohibition of
further monetization of the public

tion
*From
me

and

Avnet Electronics

■

eliminating
discrimgold inatory tariffs and other impedi-

important way.
funds, which would put

~"el

fixed price of gold (with no
society,
reservations as
to -a
possible
for the individual to
protect his future increase
in
this
price);
savings by demanding money—by independence of the Federal Remerely

per

earnings retained in the business.',

right, recognized by all
including the sovereign,

demanding value-not
symbol of money."

value

A Treasury surplus with some
debt reduction, on the other hand,
would put the Treasury in a
position to lengthen the debt and
adopt sound financing methods.

Cial

must

P°tential.

rial
.

If at all, only if the individual has
access
to
ultimate money.

There

inflation

;allay

honorably retire

"Such

the

the monetary standard
a
shield
behind which the sovereign may
at times

problem

standard.

and

power

Improvement in the Treasury's
financial position would tend to

deemed

rather

short-term debt will be the com- company will consist of $25,000,mercial banks, thus adding to the 000 of long-term debt;' 225,000
quantity of monetary purchasing shares of common stock, $100 par

find

has

central

gently

found

that

world

the

great need for money for mortgages.
successive
deficits
forces
the bama Power and Georgia Power
Up to now, there has not been very much of a change in the
Treasury into the short-term mar- for distribution by them. ,</•
.^demand for funds for the improvement and expansion of plant
ket to meet its needs for money,
Upon completion of the current. /
capacity, but this appears to be on the verge of turning up in a
and the final holders of additional financing,
capitalization
of ' the

Paul

F.
the

Spencer

Ford

now

associated

investment

firm '-of

Trask

Co.,. 25 Broad
Street, New York, as a registered
representative.
Mr. Ford previ¬
ously was with the Newark, N. J.,
office
of
Merrill Lynch, Pierce,
Fenner & Smith, Incorporated for
10 years following his graduation
from Pace College, Class of '49
with
gree.

Bachelor

Science

De¬

Number 5852

^Volume 189

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(2535)

The Commercial and Financial Chronicle

* n
■#

\V*

NS>

This, Too, Is Texas Eastern

•*

the Little Big

Inch

- v'

£§£$

i&: x >*x5: '-<

'■•

" *

I*.x ""■ f.-

necessity in 1944 to supply

Born of

»>£•

petroleum products needed for

the

the Little Big Inch

has

war

effort

had

—

-V;
''

X v XA'as ;
V

•

''''
"

'
"

",/ ?■

busy career.

Purchased by Texas Eastern

in 1947,

along with the Big Inch, the

Little

Big Inch for ten years transported
i

natural gas
west

from fields in the South¬

Seaboard

Eastern

Late

states.

put back in

was

and

Midwestern

1958, it

service as a trans¬

petroleum products.

porter of clean

Consisting of 1200 miles of war-built
and

lines

600 miles of new

some

feeder and

delivery lines, the Little

Big Inch is today one of the

nation's

largest and most important petro¬

transportation facilities. Stra¬

leum

mile

system

million
in

along the

located

tegically

are

1800-

than

barrels of surface storage,

addition

rapidly

expanding

underground storage.
The Little Big

Inch links the refineries

of the Gulf Coast and
nent

areas,

Mid-Conti¬

where oil is refined in

abundance, to the Ohio Valley and
Great

Lakes

regions

—

where little

petroleum is produced and demand
for

products is great.

In addition to

gasolines, jet, tfiesel

and furnace fuels, the
now

carries

Little Big Inch

liquefied petroleum gases

(propanes and butanes) so rural and
families

suburban

can

enjoy

the

comfort, convenience and economy
of gas

Little

heat and refrigeration.

Big Inch Division furnishes

striking proof of Texas Eastern's aim
to
an

the

become, by diversified growth,
even

service

American

valuable worker in

of the

nation and the

petroleum industry.

231

TO
OS
4*
to

CaS

Price

.240%

eorl.d

2.60% 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 3.55%

PTAMMAOUURINTESS, RICES ade\)*•.: 1953, v:011i9n6,c.-l8.2, M19ar5ch,196 1in96c2-l8.,
'.

"""

S
A
A*

<yy y

AAA

Is ues
New

;^t

'•

'euD

1961

968

1962 1963 1964 1965 1966

1969 1970

1967

;

/1-972

1973;-'.

<
■

Amount $2,150, 0 1,5v,0. 1,560, 0 1,560,- 0 1,560, 0 1,560, 0 1,560, 0 1,560, 0 1,560-,A6. 1,560 •1,560 1,560 A1,560, 0 1,560, 6

Due:

.«

'1960

YOIELRDS (Ainbcterorueesd \ $3DM0,atea0dy $11M1,290a8,3y $D10,ate0d $13M40a,rch,$3M145a,r0ch,
IS UES,
$Du2M,150ea:y$1M,25a0y
.

•

C:aliforn binotpea'r\rt•chsdl. ^fdaeopanesligrdcbriutyCaliforn.
Abb$N3Mi(1n01o,MvtaeemrrnbdsryThLACtelfaplfftyVNiiCC\b1ithonnooehnaucrug.pwaedkfgs,.ncyy bDfpthecyporxmouecnlpsl,intpceaeusorrxeactnsgmuoidlnisadrlt, fI"n'vdeilstmgraV■-yCblfbeooalgsanuovrdrinjesc,binkaveaaosmtkmmu'ntf,ifbbliuneonvmvnwwngaeshsdhdtrt¬ccsay CFoulunanm^teersrydd:p;i,'1tjohcehobhnusngefibfgD^oipvsaaytlpnrdxralecdt,
CAONGUENLTYS

DISTRC

iinf

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3.70%ifh.

Bonds

S1pbrLAgsl,denomiatf Fpratldecison. letgha f^ova:riusLAngelwmhcy
FCOLNOTRDL
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\Piuttnpod»e "'-*Sn.r
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of

basnavkings
«,;.•»-v.*, foothrer

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fomenrts

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Coopin f aliforn tthheast limttuhapioeonns
saemni-andul $b10o,pnay0dble,)fisoacanrtly
..

Principal

California,

Stofeat beli ve
the
and

California

bisounedds, incpounrtrosle, FColontrdl.

These flood

County

L&de s E&adw rds C&yTaolo.r

Co. Sons

Bartow

Kean,

RCIobnoinmscp-Haum.phyre,y SPoatuf.l
FTBBNaiathrionnsekk

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3.9(3 3.95% 3.95% 100

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100 ioo 100 100

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M&CICRLnhoaoacedr..b.sl, &HISPCcnoouhrmpotecelakrti.npyf,,

1978 1979

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1985 1986 1987 1988 1989 >v

,56ob 1,560, 0 1,560, 0 1,560, 0 1,560, 0 1,465,0 345,0 0 345,0 0 345,0 0 345,0 0

34$,0 :345;06<
:
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&nCI goen.

CGBMTSHTIouarnmrvauginpcssdknntt.yNY'7e■w•kf

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The

National Mineapolis
of

First

Van

J.
B.

HYoransektic

New

C&Fahnoest.ck

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Co., Nationl

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195
3,
June

-o.

rapidly expanding

\Continued from page 11

economy.

our

young

1900 one powerful group
acquired about 90% of the
oil refineries in the nation, along
with 90%
of the nation's pipe¬

The Minutes of the Last Meeting
the

affect

entire

economy.

men's Union
would

They are:

(1) Continuous pressure on wages.
(2) Rising prices where supply
77
and demand are such that
higher prices can be obtained.

lhq West Coast,

the

for

calamitous

strike
was

the: newspaper
York. Then there

recall

all
in

New

abortive

the

•

attempt to take

in re¬ over the New York Police; Again
industries. the political power of Monopoly
Unionism is flaunted almost daily

(3) Increased pay scales
and service

lated

higher

prices;

(4) High

taxes;

with

Inflation.

union

has increased,
has come

power

who

lines.

that

of those legislators
for
or
against union

listings
are

suchr an extentthat it was almost
impossible to launch any new big
business enterprise without the

the

Though

many

the

combinations of business and in-

enterprises were

dustrial

and, in many cases economically

•

these
phenomena,
however.
An example of the power, dis(2) When it obtains from govern¬
Monopoly Unionism is not the honesty, and ruthlessness of moment legal, and quasi-legal,
first monopoly with which
we nopoly was shown in some areas
support in the form of special have had
experience in the United cf the important and growing
laws, and preferred handling
States. As a matter of fact, if we railroad industry of the 1880s. It
refer to

The Minutes of the

Bill,

"Society
forces

Thus, as now with Monopoly
Unionism, business monopoly then
stood indicted on all seven counts
interest.

;

But

Con¬

having been against the public

ap¬

disturbed

now

felt before

never

gress
alone can deal with" the
Trust, and if we are unwilling erf
unable, there soon will be a Trust
for every production and a master
to fix the price for every- necessity

the

Minutes

The

Last

the means
by which the Congress found it
possible to put an end to busi¬
• ness
monopoly and its abuses,
* namely, the anti-trust laws. These
laws were designed expressly to
also

include

Meeting

monopoly power
being more rigidly
Even though the Sherihan Anti- enforced today than ever before.
Trust Act was passed,'■Mbnopoly
Public Is Uninformed
remained an important: factor iri
Unfortunately,
the
American
the
nation; for Monopbly dies
hard.
Some
of
its
proponents public is not- yet aware of the
found in New Jersey, Delaware; problem of Monopoly Unionism,
West Virginia, and Maine,'i;new but it is becoming very familiar—
laws which were friendly to con¬ even painfully familiar—with one
of its by-products, namely, wagesolidations;
J
push inflation.
As a matter of
The
public once again began
fact, live investigating committees
to be concerned about.monopoly..
of the Federal
Government are
This climate of public .opinion
now looking into this matter.
made it possible for. the.,"fpuckYet, as Robert C. Tyson, Chair¬
rakers," a group of opportunistic
man of the Finance Committee of
journalists and writers to become
the United States Steel Corpora¬
famous and wealthy by. exposing
tion, put it last month:
corrupt business practice's and the
;
."Hardly anyone 'has the temer¬
sins of business monopoly power.
Writers
like
Frank
Norris, Ida ity to assert that the obvious way
Tarbell, Thomas W. Lawsori, -Roy to stop cost-push inflation is to
of

life."

;

Stannard

Baker,

and Upton

curb and prevent

they

and

•

are

restrict the labor monopoly power

Sin¬

clair had their hey-day—and left
an
anti-business sentiment upon

jb'ehihd^

the

Last

the

above

groups

society? Yes.

the whole

said

plicable today:

legal

conformity.

by government agencies.

Anti-Trust

major something that might well be

equally
important to the economy and
even
above the interests of

among the several states.
>"
When John Sherman introduced

help of one or the other,

interests

own

interests

in restraint of trade or commerce

of unionism

cause

its

activities. In 1890,

trusts and their

Yes.

(7) Did business monopoly place

to Congress in 1889, directed
the attention of that body to the

it was estimated Congress
passed
the
Sherman
financial groups Anti-Trust Act, making illegal
every combination or conspiracy

By 1900,
just two

positions. Large contributions to desirable and necessary, the ficampaign funds are given with the nancial gyrations of men like the
to mean many things to different
expectation, naturally, of favored notorious Jim Fisk aroused publeaders. To some it has meant the
treatment, These are facts, known lie indignation and left a public
banding together of employees to
to anyone who reads the news- relattcjws after-taste which
conobtain justice and fair treatment.
tinues to plague business to this
To others the union has been a papers.
day.
revolutionary institution; a moral
McCIellan's Findings
Jim Fisk not only ground out
institution; a social and political
Monopoly Unionism can be in- more than $20 million of worthinstitution; and, to a few, a means
dicated on all seven counts just less Erie Railroad stock on the
of building personal power and
enumerated as being against the pnnting press in his basement, he
riches, by any means or methods
interest. The
McClellan aiso conspired to corner the gold
that can be used, and frequently public
Committee has turned up evidence
supply of the nation. He cynically
at the expense of the
union's
of racketeering; stealing, criminal
displayed his political power by
members and the general public.
union leadership; conspiracy with
placing the equally notorious Boss
Other Manifestations
municipal officials, with business- Tweed of Tammany Hall on the
men in some instances in so-called
Erie Railroad's Board of. DirecIt is understandable, therefore,
"sweetheart contracts," and with tors. This
power display was so
that Monopoly
Unionism mani¬
the underworld in others. Yet all vulgar that the editorial cartoons
fests itself in many ways contrary
these are only symptoms; not the inspired by Fisk and Tweed, noto the public interest. These evi¬
disease. The root of tlm. disease ,_tably those of Nast1 of the New
dences occur:
is monopoly power, fostered by York World, have come down to
(1) When it restrains, rather than Federal law.
<
• 0ur
day as classics of anti-busiuplifts, the individual and
We should feel 110 surprise at ness sentiment.
forces him into
the

ment?

President Harrison, in his Mes¬
sage

dominated the field of banking to

nation."
We

alone

Thursday. June 4, 1959

...

philosophy; and ambitions
upon its
benefactor: govern¬

capi¬

consolidations of power and
tal.

and

Financial Chronicle

The Commercial and

(2538)

restricted

the same
America has always

fashion that

other monopoly* power

brought about the following republic which partly persists
what happened in suits:
threatening its welfare., Such de¬
to this day.
termined
obliviousness
to
the
will discover there
By 1912, people once again be¬
^ Watering
of railroad com¬
and denies the
obvious in itself attests the great
really isn't anything very novel
came
anxious
about
pany stocks, with substantial
monopbly
such goods or services to the about our
present situation.
and political power
losses to the investing public. power in business. Woodrow Wil¬ propaganda
other segments of the econ¬
the union leaders : already have
The period from 1880 to 1904
(2) Ruinous rate wars, aimed at son, campaigning that year, said: achieved."
omy,
except on
conditions
was Ihe great development period
7"'/
rm.hin.
"A comparatively
crushing competition. Tr» i«rs
most
favorable to its
con¬
In 1885
smalj number
of our country; It was the time
In spite of all the public clamof
the fare
from St.
Louis to of men control the raw materials,
trollers or leaders.
of the building of railroads and
Chicago was knocked dpwn to the water power, the railroads, against wage-push inflation, ■ in
(4). When it obtains the powers of the development of the oil and
$1.
When competition was the larger credits of the country,1 spite of Congressional Committee
coercion, by law or economic other great businesses. No fewer
crushed, the railroads raised and, by agreement bandied around1 investigations, and in spite of the
strength, enabling it to dictate than 300 corporate consolidations
the rates
and
charged "all among themselves, they • control growing attention being given to
at will to other segments of
of national scope took place in
Monopoly Unionism in the press,
that the traffic would bear," prices."
■
.' - „
•• •«
the economy.
those
24
it
is
still
difficult
to
discuss
years.
Together they
a phrase that has come down
This was a damaging statement, (5) When it exacts tribute from covered practically every manuunionism
without emotion.
For.
to us from that day.
other segments of the econ¬
indeed, and in the Wilson Ad¬
factoring industry. Combinations
■
example, writing in a special sec¬
ministration
came
the
Federal
omy in the form of payments took
tion of the"New York Times," on
place in steel, nonierrous <3> Discrimination between indifor
viduals and communities. Re¬ Trade Commission Act, in 1914,
services
not
rendered
metals, oils, chemicals, textiles,
May 17, David Dubinsky still felt
bates were given
to certain which provided for the establish¬
(feather-bedding); tribute for paper, and in industrial, agricul¬
impelled to say: "Our Union, like
favors conferred or violence
shippers to help them destroy ment, in the following ; year, of most unions in
tural, office, and household
America, came into
their competitors.
withheld (racketeering); and
the
Federal
Trade
Commission existence in
machinery.
response to a
deep
tribute in the form of higher
as
an
independent administrative human
emotion:, the
worker's
Never before nor since have the (4) Influencing politics and corprices for all (Inflation).
agency.
In 1914 Congress passed
rupting
legislators,
judges
structure and method of control
passion
to
be respected ; as
a
the Clayton Anti-Trust Act.' This
(6) When it turns upon its prin¬
5
and other officials.
human being and to participate in
of an economy been so suddenly
law was designed to supplement
cipal benefactor, government
determining
and7 improving his
as
during that period, (5) Graft on a grand scale, es¬
and seeks to impose its power, changed
the Sherman Act;
It prohibited"
brief as it was. Enterprising pro¬
working and living conditions. For
pecially to construction, com¬
philosophy,
and
ambitions
practices which tended to produce this
moters
and
investment
bankers
panies.
passion * they
required no
upon it.
monopoly.
However,/, the' law evidence from statisticians, econ¬
Ah example of the latter, a conput together combinations tha&
(7) When it places its own in¬
specifically exempted labor and
embraced nearly every part of the struction company was organized
omists,
time-study
experts,
or
terests above the interests of
agricultural
organizations
from
nation's
economic
life.
In
both to build the Union Pacific Raillawyers.. The Garment Worker's
the
groups equally important to
operation
of the anti-trust
national and regional markets the road,
burning ambition for economic
in its organization were
the
of

control

exclusive Meeting and

obtains

(3) When

goods

.services the 1880s,
benefits of
or

see

/rix

economy,

the

interests

even

above

the

entire

better

illustration

these

manifestations of Monopoly Union¬
ism can be found than the threat

greatly reduced the
no industry,

however, did it create pure monopoly. But many combinations
controlled

laws.

combinations

number of sellers. In

society itself.

much

their

re-

some

self.

the

Through

the
for

the

holders

company

the

influentialUnion

unfair
obtained

construction

The

Mr.

And

that

James

what

contracts
rail-

Mr.

Hoffa

threat

provoked the

Hoffa

says

didn't

make? The following statement by
Senator John L. McClellan, Chair¬

the

man

Senate

Rackets

In¬

vestigating Committee:
"The

time

has

come

for

Con¬

gress
to seriously consider the
enactment
of
special anti-trust

legislation
field.

...

the

transportation
obvious

whole

country

unions

themselves

that

the

cannot

the

labor
handle

the critical problem of racketeer¬

ing.
top

The present alliance of
officials
of
the
Teamsters

Union

with

the

underworld

has

gained the proportions where the
amassing of any further power by
that

union

with

equally

corrupt

•

them,

check

festations

the

bark of
cold pangs of
this anger and

the

boss,

hunger;

the ' mani¬

against

in the foul air

born

was

sweatshop, m the

the

Out

frustration

the union."

arose

;

of Monopoly. Unionism,

which

place it against the public
■.' ■ ■ .7' '•■■ \ J; Y'Y'1

considered

business

monopoly re¬
strain, rather than uplift, the
individual?

earlier, arid

interest:

(1) Did

complete;;1 .Let' lis

thus

are

;

Last Meet¬

(2)

Yes.

Change

..That

ago.

formed,

was

years

this

time, the smell of the sweatshop,;
The
bark
of
the
boss, and
the*
cold

union

great

than

Unions

pangs

must

hunger

Did business monopoly obtain

faint indeed for the 442,901

mem¬

bers of

solvent and solid

union,
12,300

x.1.

*»

™

government

Era of Robber Barons

was

the

legislation.

era

of steel

brought

The business monopolies of that
time had
the
identical kind
of

roads,

for

principal

dividually became indignant, too,
and 25 of them passed anti-trust

support

that

Monopoly

Longshoremen's

Federal Government with the aim

ing

the

legal/. and
other members of Congress. Those:;
quasi-legal
shares, during a single year paid
support ^ in/ .,the
forms
of
"kings," dividends several times their par
la'vys 7'and
oil and coal "barons," merchant value—but they were sold at a
preferred i- haij^Spig? Yes. .7.
"princes,"
railroad
"magnates," very low price, or given free, to (3) Did business.^^fiqpoly. obtain
and "Napoleons of finance."
exclusive coni^bLbf gobds and
party leaders, committee chairservices and
Many
of
them
abused
their men, and other government offideny the
benefits of
power, resorting to graft and cor- cials,
in return for favors resucjp^ other seg¬
ments of the;
ruption which seriously endan- ceived.
my? Yes.
gered
the
nation's
social, eco¬
(4) Did business
poly obtain
nomic, and political ideals. They
Public Favored Regulation
powers of cqe!
h, by law or
dominated
government officials,
Practices
like
these
created; ;
economic, st
7 enabling, it
controlled
law
enforcement public opinion in favor of regulato
dictate
111 to other
agencies, and elected and con- tion. The first of these regulatory
segments of th
"homy? Yes.''
trolled legislators, exacting favors laws,
the Interstate
Commerce (5) Did business
poly exact
in the form of grants and favorable Act, came in 1887. But while this
tribute from
hr segments
.fi
r*

Unionism

Warehouse¬

from

unions like the ILA, or left-wingled unions like the International

and

Minutes

measures,

the

freedom

'/• :

Check-List

it-

spective markets that they af- road. Rumors of excessive profits
says
he fected
prices directly, simply by were public and there was danger
didn't make in Texas, should Con¬
their production policies.
Others of an investigation by Congress,
gress pass restraining legislation. collaborated
readily with
their This was prevented; however, by
But if he didn't threaten to shut
rivals, big or little, to stabilize a Congressman who -just hapthe whole country down, then, he
the market in what could have pened also to be an
official of
certainly has
inferred
that
he been
interpreted as illegal con- the
construction
company.
He
would do it on other occasions.
spiracy.
distributed
shares
of
stock
to
that

stock-

Pacific

the

our

deliberate

time

has

assistance

had:
the

areas

laws

regulation to the railit had no effect in other

of business.

1890.

The

But

States in-

these

were

largely ineffective against the big

the

tribute
or

for

violence

not

with
assets

contracts

and with net
than $60 million!

factories,
more

Yf "Our

big

unions

help,"

need

said

Henry Fold at Yale Univer¬

sity

in February.
relieve

monopoly

them

"The first
of

power

the

step;

burden

that

once^

again they will meet management
on the basis of real power equal¬

ity, and competitive market forces
can
work to keep profits, prices,
and

in balance. To do this*
sound
action
limiting-

wages

requires

payments

monopoly power of iinions., Such
action would also help to correct
the abuses that unrestricted power

favors

conferred

withheld, * and in

higher prices? Yes.
L
(6) Did
business
monopoly
tempt

holding

rendered, "ih

ecoriCE®llilh

services

impose

its

has

made

The

at¬

power,

possible

certain

unions.",

ionism

problem of Monopoly
will

solved by

have

the people of

met

our

Un¬
and

nation

Volume

before

189

Number 5852

The Commercial and Financial Chronicle

confidently take off

we can

do about it?

What

Must

Los Angeles

;

Bank

$40 Million Bonds of

on the next big cycle of economic
growth and progress. What should

Now

the past ;

Vv1;

"'■'.-v 000,000 Los Angeles County flood

Two weeks ago, as

before,

I mentioned
McClellan called

Senator

for

the

control
The

case

anti-trust approach, citing
of the newspaper delivery

hopeful

This

Texas.

development

Harris

Trust

Company,

Savings

Bank,

FranciscOj Security First National

Monopoly
ended. If

Unionism

combined

bid a premium
$10,000,000 of straight
4%
bonds
maturing
March
1,
1961-1989, or a net interest cost
of

the

group

$4,701

bonds

District

3.99%.

The

reoffered to investors

were

yield from 2.40% to a dollar
price of par, according to maturi¬
ty 1960-1989.

included

American Trust Company of San

counts!

and

Trust

valuation

and

Proceeds

the bond

Bank

Hensley, Partner in

80%

cities.

America

Carl M. Loeb, Rhoades

N.T. & S.A.

the underwriting

accounts it
Carl M. Loeb, Rhoades & Co.,
have bought more than
$629 million of California State members of the New York Stock
and Municipal bonds in the past Exchange,
announced that Gor¬
12 months. The Bank and its syn¬ don H. Hensley has been admitted
dicates through their practice of to general partnership in the firm,
bidding on virtually all Califor¬ Mr. Hensley was formerly a part¬

manages

nia Municipal bond issues, provide
an
assured source of funds for
needed Civic improvements
public projects.

J. H. Baum

sale will

the

assessed

valuation

Los

in the

area

West.

About

41%

in Gross & Co.

Forms Durant & Co.

ness

under the firm

in the Pe¬

nobscot
name

from offices at 29 Frost Park¬

way

business from

was

Baum & Co.

offices

securities

Building under the firm

of Durant & Co. Mr. Durant

formerly with CampbeU, Mc-

Carty &

of J. H.

—

& Al-

Co. and Fordon

dinger.

must

talk about it openly

explain

it,

and over
again, I feel sure we will ulti¬
mately help the public recognize
its dangers. In this we are receiv¬
ing great help by the actions of
certain
We

union

should

further

iin

the
of

"phony." We should
thankful for the daily
unmatched

the hands
We

for

revelations

themselves.

thankful

characterization

AFL-CIO's
Inflation

over

leaders

of Mr.

have

made

power

Hoffa.^

some

;

progress

showing

what. M o n o p o 1 y
Wage-push inflation
revealing; it has
put a public spotlight on one of
Monopoly
Unionism's
principal
consequences.
If we can make
Monopoly Unionism publicly visi¬
ble for what it .is: a monopoly
against the public interest, then I
hpnestly believe the general pub¬
lic-/will bring- pressure on Con¬
gress ta do ;vthe obvious thing, as
Bob ' Tyson mentioned, and give
the
unions the : help urged by
Unionism

has

is.

been highly

"
'

Henry 1 Ford,
by
applying
to
Monopoly Unionism the restric¬
tions of

the

antirtrust

laws.

[ Then and only then will

strike at the roots of the problem
the nation did in the

—as

business—the
power

case

elimination

the

that corrupts and destroys,
monopoly.
.

the power of

First Slock

Made

PROGRESS WITH

Realty Corp.
stock

the

company.

Florida

was

utilized in conjunction

throughout the world.

over

four years.

The pilot plant at Birmingham,

Alabama, has processed about 125,000 tons of
many

ore,

thousands of tons of metallic iron

ing furnaces, electric
It

can

now

,s.

costs for

or open

with

ores

from

many areas

single high grade metallic iron product is

ores.

hearth.

plant to produce these metallics

are

with attendant coke ovens, and other auxiliary

reducing agent in many chemical processing

steps and numerous applications are
the metallic iron in

indicated for

plastics.

R-N
A

BOON

NATIONAL

RESOURCES

Among the several advantages of the R-N
is its

primary purpose of in¬
vesting in and developing Florida
real
estate.
Its
principal office
is in Fort Lauderdale, Broward
County, Florida. The company's
charter provides, however, for di¬
other

use

process

of low grade ores, and particularly, coals.

process

Corporation is

now

prepared to license the

to prospective clients. R-N is also prepared

to furnish process

engineering and start-up assis¬

tance to any client to whom a license

has been granted.

REPUBLIC
CLEVELAND

OHIO

of its investments in

fields

as
may
be recom¬
by
management
and
approved by the board of direc¬
tors. The main scope of operations,
however, has been and will be
the acquisition and development

mended

land

the

state

Florida.

This
of

development has consisted
the promotion and construction

cooperative

apartments

and

homes arid it is contemplated that

other

carefully
parcels, will include

developments,

selected land

construction of other rental units

including

homes, apartments,
motels, hotels and light industrial
buildings. This building program
for rental and lease, may be held
either
for
investment
yield or
sold.
^

equipment.

formed in June, 1956

versification

used

furnaces. The unbriquetted product may be
as

the

for

iron

Thousands of tons of this product haye been

successfully test melted in electric and open hearth

be assuredly stated that the capital

the order of half that required for a blast furnace
,

be mined and economically

use may

obtained from R-N processing of all grades of

briquettes, capable of being fed directly into melt¬

Net proceeds from

will be used

metallurgical

yielding

;

Vast known deposits of fuels now worthless for

for

the financing
by the company for
the development of its real estate
properties. The balance of the
proceeds will provide additional
working capital for the company.
Investment Corporation of
-

referred to

REDUCTION

co-developers) has been in successful pilot operation

price
of $4.50 per share was made June
2 by an underwriting group jointly headed by Aetna
Securities
Corporation and Roman & John*
son. The offering marks the first
public sale of the common stock
common

Direct Ore Reduction Process,

DIRECT ORE

the R-N, (for Republic Steel and National Lead,

Public offering of 275,000 shares
of
Investment
Corporation
of

Florida

Report on Republic Steel's

Behalf of

Florida

Offering:

•

Richard

DETROIT, Mich.
Durant is engaging in

Opens

name

ner

and

TIFFIN, Ohio—James H. Baum
The Los Angeles Flood is
engaging in a securities busi¬

Control District includes 99.2% of

Angeles County, the largest urban

the

over

used for various flood control

purposes.

Bankers

assessed

of straight 4%
bonds maturing
May 1, 1960-1983, or a net interest
cost to the District of 3.93%. The

both

syndicate

the

in incorporated

York,

of Mr. Hoffa's.

cause

merged

June

Los

City of Los Angeles and

First National City Bank of New

situation in New York. This, as I

said, was the
explosion in

district bonds

Bank,

The
merged syndicate bid a
premium of $22,369 for $30,000,000

County

thing we can do, one thing
we must do, is to bring Monopoly
An underwriting syndicate
Unionism to the light of day. We
headed by Bank of America N.T.
must point out that racketeering;
& S.A.
merged with The Chase
conspiracy, lawlessness, and con¬ Manhattan Bank group and the
tempt of the public generally are Lehman Brothers-Harriman
Rip¬
but
consequences
of
monopoly ley & Co., Inc.-Halsey, Stuart &
power—as they always have been
Co. Inc. account to buy the $40,in

California

and

Angeles.

Offered to Investors

One

(2599)

-V

;

The Commercial and Financial Chronicle

(2540)

fess to

Continued from, first page

round. They have developed a technique of
setting up puppet regimes for such purposes as these,, but
if one may judge by what they have been able to accom¬
plish in East Germany, Poland, Czechoslovakia and the
other satellite countries, the future of peoples they plan
to "save" in any such way is not particularly bright.
To sum it all up: the economic salvation of these un¬
fortunates is quite impossible except by themselves—with
help and guidance from abroad, to be sure, but their fate

See It
We

the few whom Moscow,

for

one reason or

another, would

bring under its rule.
Related also to all this are our foreign aid programs
about which there is now so much and so bitter con¬

like to destroy or

of late years be?n engaging in
foreign aid program of its own, designed to provide help
of a sort where it believes most will be accomplished. The

troversy. The Kremlin has
a
'

in the end is in their

own

hands.

Thursday, Jime 4, 1959

a portion
of his
short, by dint of
prodigious effort, inflation man¬
ages to produce more of less.
Inflation
will
not
be eradi¬
cated, but it can be arrested. This
can
be done, in part, by putting

each

help, they will have their hands full making the

wheels

end

earnings.

govern¬

unnecessary

spending. It can be arrested
by leaving a larger part of the
national income in the hands of
ment

people who earn it—thus en¬
them to buy more of the
goods and services they want and
need.
/'/. ../. .■■■' ;/•'
/.,/;/'.;
the

abling

general theory behind our own foreign aid operations has
been that hungry peoples are likely to be discontented

Continued

peoples, much more ready to listen to the blandishments
which cunningly suggests that by aping the
communist states they can presently match the blessings
now
enjoyed by western peoples. Of course, our nonmilitary assistance has not been confined to these outlying
regions, but was • of major proportions in devastated
Europe. Whether and to what extent it has as yet proved
to be worth what it cost is a matter about which opinions

of Moscow

lions

matter

backward

of the

peoples

Living in

who

elimination of manual

make

such

45 to handle the

and

switchboards.

the

aspects
such.
For one thing, the habit of using
the telephone steadily grows. One
: reason for this is the simple fact
of

few

enterprise flowing from
program would be of enor¬

;

interesting

of the telephone business as

lasting benefit.

and

"Journal;of Accountancy,"

rice/H.
Bureau

titled

issue of the

May,: 1959,

the

United

I would also like to remark on

of the in¬
Automatic
Electric,
for
example, - is
the
originator of the dial telephone.
Yet Bell is1 so big that I never
speak of the over-all picture but
what I am reminded of a story of

misery does constitute a problem for the remainder of the
a problem in one sense, although not

ages

enough

between the

stimulus

The

basis.

lower

private

operations,

not

in the U.

women

independent segment
dustry.
Our
o w n

world. It would be

would

there

apparatus and equipment the
operating companies use.
I think the Bell System would
be the first to acknowledge the
contributions to the art by the

and

poverty

manufacturers

the

teeming hundreds of mil¬

still

six

—

be modified broadly and on

could
a

question

corporate and private

taxes—

Telephone Man Tahes

mous

A Ileal Problem

whole

that ex¬
cise taxes could easily be elimi¬
nated or reduced and that income
is

There

page

A Look at the Futuie

still differ widely.

This

from

;

Mau¬

the

Stans,: .Director
of the
Budget

the -;

States, in : an article en¬
"The Federal Budget: The

Issues" saidj-s in part: /'/»

Beeper

'-/'Deficit budgeting is

a breeder (/
malignant public debt/ grow/
•
big, interest costs, and erosive in/////^
f latioif.Air of these; if unchecked; /// '/

number of telephones
depriye, the national; economy, of//
population; increases, the i t's «■ vigo 1/ £ a ndv have/the1 effect of
of people
who can be ehhininfv a^porti on/)f5t^
called from a given telephone also f
'M
poses. It is a problem which has existed in one
increases and with that, the Value
nnot|ier since thdderh
beg^»;
d
/ When the two got on the other of ;the service/It'lis'sort
Ofjchain1!
and unused resources within the domains of these
side,'the flea said, "Say, big boy, reaction—and
t\%$*fret * result .la¬ 'se.cloi-k/afe ''strained to carry/the
we sure
ziighted and unfortunate peoples were once a
attrac¬ .'i we?" > shook that bridge,, didn't th at / thje ^spread • between- ^what
; - f •
must be charged for the service
tion for- foreign capital. - Its exploitation without very
,' But speaking of the telephone
and the .value of that service! con¬
much regard for the natives Of these regions was in
industry, X think you willy find tinually widens. >
;
. /-//./
// /
essence the "imperialism" about which we. now hear so
these facts just published by our •
/V Another
interesting aspect is
frjends at Bell most interesting,
much and:-which is ppw bften1 ^
much warrant
that
nearly 80%
of the U. •/§.
There are > 118,000,000 /telephones
condemned as an un(mikedt curse.'/
households have telephones how.
- " in the, world. Sixty-fbur million
This would suggest • that we /ate flexibility:,, harries&d/tto/respon/^/ ■
of these—nearly 55%—are here in/
/// In considering thepeoples*
However, a sibility/. It' is/the only: rpute/ to///
the United States.
With only 7%} reaching saturation.
there are a few inescapable truths all too often over¬
of the population, it's plain that percentage; such as j this doesn't
looked. One of them is that the establishment of bread-!
tell the whole story because it security,/
we have the most—and I am just
///A:///>!►/- '•///r;:•// ///.i
^Government/can dor much to //
; /
lines, so to speak, in any or all of these regions will leave- as sure—the best communications does not reflect expanded traffic
nor
the
trend
toward
two-line foster/ the;/gains./,our:: people all// / /
to be found anywhere.
the problems just about where they were before. Some
At least
homes
and
multiple extensions. wank to: see/whether; it "is in .the //. /,
we must
be the talkingest folks
appeasement of unrest temporarily- -may occur,- and thus
And
this is further accentuated field of outer - space: research/;the i
f.
there are.
'/ ■" .'
untoward developments for a time postponed, but not
by the many new services and achievement; of / commercially'/
I was particularly interested to
conveniences offered by the tele¬ feasible nuclear /power, -v the / atf/>:
much more than that can be expected at best. Even the
see how we compare with Soviet
Russia.
The U.S.S.R. with over phone industry, both to the res¬ tainment of sale air navigation,/or ;/•/•;/.'
United States with its great productive power could not
ident. subscriber and the business support of air International Geo-200,000,000 people, has only 3,make much of a dent in the poverty of, say, India, even
concern.
physical.. Year./- The' issue boils •"/ /
553,000 telephones. Our own Gen¬

/so

a problem, by en if the communists
determined to make use of it for their own

threatening

not

eivijiz^ibn

were

that

J]te

the

per 100
number

pur¬ / the elephant who was crossing a
not-too-strong bridge.] On his
form or .back enjoying the ride was a flea:
>

greatj

if it

proceeded at a feverish pace and held its own people
Spartan life. There are too many people in India, and
their poverty is too great. And, of course, India is but a
part of the world of poverty and misery.
to

cward

fact, which so few of our political leaders
understand, is that the resources of these back-

lands

cannot

developed and exploited under
existing conditions in those countries by any such program
of capital export as used to be
commonplace. It may or
may not be that in times past

capital exported to such
solely, or nearly so, for the
benefit of those who supplied it. The fact is,
though, that
the risk of such export now
usually is far too great for
private interests—and correction or elimination of earlier
parts of the earth

abuses where
treatment

for

was

used

they existed is
such

ventures

guarantee at all of fair

this

under conditions which exist in
many

day and time and
of these lands. Seiz¬

confiscation, destruction and the like all

ure,

too

often

occur.

Nor does government
grants and control of such loans
capital investment alter the basic nature of this situa¬

tion—except possibly to make matters worse.
every day we hear some politician asserting that

Almost
our

aid,

of it than at present, should be in the form of
loans. We have several so-called international institutions
or

designed in final analysis to pump dollars into undevel¬
oped regions. Merely to label gifts loans does not alter
their basic nature. The
placing of capital abroad and
making it work in the production of goods and services
needed by backward
peoples—and thus helping them
reach the point where
they can buy the goods thus pro¬
duced is

Of course, the communist nations face
the

same

dif-

ficulties, and short of virtual enslavement of local
popula¬
tions, can do less even than can we to relieve the situation
which

assertedly is the motivating force of their actions.
And, of course, if they intend—and that is what is in their

mind

make slave labor out of the

..comparison ends.
I

also

time

...

recall

reading a short
that they finally got
publishing a telephone

ago
to

then

also

for

has

there

there, I hope, the

Moscow—and

incomplete

other

one

only

one

even

is
As if

and

copy

located in
this

one.

limitation:

the post office.
weren't enough, none of

the
government departments have
central
switchboards, and it is
quite conceivable that a Moscovite
can
spend the better portion of
his lifetime trying to contact the
right person in the government,
assuming that he is brave enough
to try it in the first place.
When

looks

one

ahead

the

future

of the industry, we must
think in terms not only about the

things

new

will do

day,

some

but we must keep in mind plans
already under way, plans of such
long-range character that their

full

effects

will

not

for

occur

been discussing
technology, but
technological progress is not
enough. We can state with cer¬
tainty that electronic switching,
far

for

instance, will reduce the size
exchanges, cut mainte¬

our

nance

costs

amount

But

creases

and,

—

toll

traffic

in¬

incidentally,

grows

out of proportion to popu¬

lation

growth—there is the

very

real

these

none

ments may come

brake

services.

and

Sees $750 Billion GNP in 1970
To

reach

national

—

high goal set for

the

potential gross
$750 billion
take an enormous

product

197G—will

basis
on

the

future

money.

of all

In fact,

reasonable

far

too

high.

This

effects

it imposes

peoples they

pro¬

times,

the

one

the

inflation, and

serious problem and
question not only to us but to
every citizen.

High

lant.

standards,

unit basis, the cost of what
have attained to date has been

should have learned

problem,

advance¬

to pass unless a
on
the cost of

and
practical
problem
of
finding a sufficient number of
young ladies to "man" the switch¬

This

placed
things. Every move we make in
the area of improvement is ne¬
gated by the rising costs of labor
and
materials—not only in our
own
operations
but
in
the
thousands upon thousands of other
companies who supply us goods

insidious

that

tion

among

the

lessons

is that infla¬

costly business stimu¬
short-range palli¬

It has the

has been without solution and of/ ative qualities of a drug—and all
the direful
concern to our national security.
after-effects
of one.
But

inishes

problem which

message

toll

dim¬
traffic is

automated.
Here
were

the

startling

fact:

not for the mechanization of

telephone

system

and

the

pub-;/

down to this: for every new

service

lie

that

the .revenuesto

for

supporti it./-

Our

genius for government has
not yet discovered a method of
fiscal sorcery through which gov¬
ernment can give something for

nothing;-:I v//
Certainly: what/Director/ Stans
says bears out: and- gives force to
the point I am making.
Inflation
high taxation
and
unnecessary
government
spending — these
are
the
real

threats

being.

economic

our

•

well-

the- forces
must fight aggressively

These : are:

which

before

will

able

to higher ground.
Recently President Eisenhower
again emphasized the challenge

facing all of us when he said, "A
balanced budget is the minimum
target that we are looking for..,
we ought to be getting some sur¬
pluses, we ought to be paying off
something on our debt. The Fed¬
eral Government simply must do
its duty if we are going to pre¬
serve
the kind of economy that
we like to call a free competitive
economy.
And if all of us don't
demand from labor, from business

leaders, and from the Congress the
kind
of
sensible,
reasonable,
needed action that all of
to be necessary

here, each

know
one

'not

just some other person'
—is going to be hurt immeasur¬
ably."
There is no question about our
ultimately winning the battle, but
us

—

will

ing

take

lot

soul-search¬

-lot of doing,
will be the only way we
and

the

Even the smallest induced amount

sure

say?")
is bound to lower the purchasing
power of every segment of our
economy. By leaving us with dol¬
lars

Having

survival

and
can

the

it
as- -

Free

World.

buy very

little,

it robs

: :

move

—("controlled," "did they

that

government

tin-// /
dertakes,.provision must be made *,/ •

the

fact

Warns of Man-Made Barriers

amount of

long

It will

that

dis¬
practically any tele¬
phone in the country without the
help of an operator. Of no little
importance in this connection is

complete

use.

question,
therefore,
highly desirable.

scribers

can

There is

the

tance calls to

the

reduce

and

copper

also improve service.

One such development, and
certainly the most important one,
is the arrangement by which sub¬

years.

have

communications

boards.

technical task that, requires the best in business

judgment and experience.
*

But

directory

A second

Telephone System has

than that.

around

Times Have Changed

seem

eral

tion

reminded

the

this

beautiful

connec¬

words

"The Onset" by poet Robert Frost.
.

describedwith

accurate

...

Volume

Number 5852

189

vividness the effect of

devastating
;zards

one

and

the

The Commercial and Financial Chronicle

of the

New England
how the snow

succumbed ^to

bdizlater

warmth

1959, is estimated at $320,000,000. erates a mass bus transportation
this
amount, approximately system that serves areas in New
$134,000,000 has been or will be Jersey and extends to New York
spent in the last ten months of City, Philadelphia and Wilming¬

$50 Million Bonds of
Pmblic Service Eleetric

"The

Winter

death

has

•

stant

it is with

race

for national

our con¬

survival, if

will it so—Spring will always

The
The

First

Boston

Corporation
and associates offered publicly on
June
3
an
issue
of $50,000,000
Public

Service

Electric

Common Stock Offered

death

will ever fail.

Public offering of 150,000 shares
Hermes Electronics Co. com¬

stock at

price of $4.50 per
share was made June 2 by C. E.
Unterberg, Towbin Co. and associ¬
ates. The offering marks the first
public sale of the company's com¬
mon

Proceeds from the sale will be

funds of the
and used by it for its
general corporate purposes, in¬
cluding payment of a portion of
company

For Investment
a

which,

Net proceeds from the

Feb.

sub¬

ton.

are

Mew Officers Mamed

Total operating revenues of the

redeemable

for the 12 months ended
March 31,1959 amounted to $352,company

for those redeemed

stock

and

Service

Public

Coordinated Transport, which

28,

12,911,665 shares of common

stock,

op¬

PRESIDENT'S

stock.

mon

capital

the cost of its current construction
program,

bonds

To Hold Outing;

The Corporation Bond Traders
Club of New York will hold their
434,253 and net income to $38,annual outing on June 12 at the
prior to June 1, 1960, to 100% for 652,916, compared with $344,033Nassau Country Club, Glen Cove,
those redeemed on or after June 787
and
$35,310,089
for
the
Long Island.
1, 1988; and at special redemption calendar year 1958.
The new officers for the com¬
prices ranging from 101.94% for
Giving effect to the sale of the
ing year are:
those redeemed prior to June 1, new
bonds, capitalization of the
President: Paul J. Lane, Kid¬
1960, to 100% for those redeemed company as of Dec. 31, 1958 was:
on or after June 1, 1988.
$671,470,600 in long-term debt; der, Peabody & Co.
The company is an operating
Vice-President: John F. McCor999,995 shares of cumulative pre¬
public utility company engaged in
mick, F. S. Smithers & Co.
ferred stock, par $100; 2,531,833
the electric and gas business in
Secretary: Daniel D. McCarthy,
New Jersey. In addition, the com¬ shares of $1.40 dividend prefer¬
East Dillon, Union Securities &
ence common stock, no par value;
pany owns all of the outstanding
Co.

added to the general

Winter

the

remainder

from 106.94%

Gas

and

Hermes Electronics

—

the

regular redemption prices ranging

Company
first
and
refunding
mortgage bonds, 5Vs% series due
1989, at 101.931% to yield 5%.
The group was awarded the issue
at competitive sale on a bid of
101.283% for the 5%% coupon.

again

come

and

sequent years.

never

tried the earth but it has failed "
And

1959

& Gas Co. Marketed

Treasurer:

value.

par

Andrew

From Northern States Power

REPORT

Company and the 4 states

we serve

due Sept. 30, 1959 outstanding in
the

amount of $135,000 and the
payment of short-term bank notes
outstanding
in
the
amount
of
$350,000. The balance of the pro¬
ceeds will be used for
general
corporate purposes, including the
purchase of additional equipment

and

NSP

machinery.

Hermes Electronics Co.

ganized

1955

undertake

Delaware

May

research

or¬

was

and

Just

NEW

PLANTS

BTU

USED

nents

22.8% IN 10 YEARS

present

products.

Its

adopted on May
I,
1959- It manufactures three
lines of products—crystal filters,
digital units, and stable frequency
Sales

the

of the

Armed

subcontracts
ment

with

contractors.

Services

the

ant

efficiency of
the

prime govern¬
Executive

serves

of¬

the company are located in
Cambridge, Mass.
On completion of the current
financing, outstanding capitaliza¬
tion of the company will consist
of $200,000 of 5% ten-year sink¬
ing fund debentures due July 1,
1965 (convertible); 9,000 shares of
$5 cumulative convertible
pre¬
ferred stock, and 884,854 shares

—

stock.

the

The'new

•

is vital to

Btu

utility,

utility is

setting new records in the
electric

thus encouraging

new

con¬

dent

Until

modern

equipment has helped step

efficiency

illustrated by

•

Generating units less
account

• Four

provide additional funds to
meet continuing substantial
de¬

only 40%

the

each with

capability

NSP

1959

Btu

system—will
and

1960,

into

helping to

kwh still

per

effi¬

further.

in growth makes NSP confi¬

stage

further

increases

NSP

felt

efficiency.

it necessary to

disperse plants widely over its system to

these

ample

everywhere.

reserves

for

system load justifies

than 10 years

45% of NSP's

lines,

gener¬

Today's

units put

new

August,

larger transmission

allowing concentration of larger,

highly efficient generating plants

ating capability.

Bank Motes Offered

—

old

Federal Home Loan

the

recently,

assure

facts

kwh 22.8% in 10

kw—largest and most

service

tinually increasing use of power.
How

to trim costs and keep

company

electricity cheap,

NSP's

units

170,000

lower

helps the

helped cut NSP's

per

period.

same

new

cient

generation—efficiency that

have

production of kwh's jumped 101%

the

in
• Two

efficiency of

units

helping

are

kwh.

per

with fuel costs

while

Btu

consumption

years,

import¬

people whom

NSP's

reduce

Northern States Power Company is

Today,

its

that

electric

of the

progress

bility of 425,000 kw and

prosperity
area

including its shareholders.

common

serves.;
an

and

fices and manufacturing facilities

KWH

PER

company's

products
and
services
include
sales under direct contracts with
each

CUT

name was

sources.

generating units

new

development in certain areas of
communications, electronics and
physics and to develop and mar¬
ket specialized electronic compo¬
and

climbs with 425,000 KW

efficiency

in service

1952 have a..generating

areas

since

of most

customers

capa¬

and

in the

favorable

fuel

costs.

investors

gain

Both

result.

mand for home mortgage money,

public offering was made June 3
$124,000,000 Federal Home
Banks
Loan
4V2%
consolidated

NSP

44.

ELECTRIC

REVENUE

FASTER

GROWTH

notes dated June

15, 1959 and due
15, 1960. The notes are
priced at 100%. The offering is
being made by the Federal Home
Loan Board through Everett

COMES

March

Smith, Fiscal Agent of the Home
Loan Banks, and a national group

FROM

AND

RESIDENTIAL

RURAL

from 38% ten years ago,
revenue

sitive

business

NSP

less

Home Loan Banks will total

stabilizer.

$995,homes

950,000.

and

fluctuations—a

Increasing

industry has

use

its

contributed to 25

N. J.

—

management of Wendell Polk and
Morton

Black.

GROWTH
of

the

and

the

NSP

WASHINGTON,
firm

name

—

Dakotas.

The

poration has been changed to
Balogh & Company, Inc. Offices
are now located in the Woodward

balance

food
of

—

Minnesota,

economy

Wisconsin

also,

ranging

there

rate
4

states

the

since
growth

v-/Q

manufacturing employment in
has

topped the national

Within

healthy

from the stability of

processing to the atomic-age growth

"brain

They have a diversified

diversified industry.

manufacturing,

of The Matthew Cor¬

Building.

states:

the

revenue

1948,

STABILITY marks

WITH

agriculture,

Now Balogh & Co.

)

Hallowell,

doubled

large light and

power

New Branch Office
CAMDEN,

than

sales

NSP has

revenue,

built-

of power in

straight years of revenue growth for NSP.

Sulzberger,
Jenks, Kirkland &
Co. have opened a branch office
at 142 North Broadway under the

big gains

residential

sen¬

of security dealers.

Upon issuance of the notes, out¬
standing
indebtedness
of
the

STATES. Along

with

this is highly
it

because

desirable

FOR INDUSTRY IN 4

SALES

industries."

President,
Northern States
Power

Hacht-

Wood, Struthers & Co.

mann,

financing

will be used by the company for
the prepayment of a 5%% note

Corp. Bond Traders

Spring, he wrote these triumphant
words:

(2541)

Company

our

average

The Commercial and Financial Chronicle

ard

Continued jrom page 3

Stay Active in Business

and even to destroy our

to hobble,

system of free economic choice.
This is a power of attorney to
alter our lives in every way, be¬
cause
it is a power of attorney
over our free competitive
enter¬

to become a cloak
extravagant or wasteful

permitted

be
to

cover

spending.
We must not confuse
mere spending with improved de¬
fense.
We must realize that to the ex¬

„

the right,

The businessman has

the right, but the
duty, to use his citizen's responsi¬
bilities in our system of govern¬
ment to see to it that the people
we elect are people who under¬
stand
and appreciate our free¬
only

not

of
attorney, and all the fine print
provisions that go with it, to pre¬
defend

and

serve

and

improve

enterprise. This is why the
should be actively

free

There

hard decisions to be

are

made between what is

really nec¬

and what is merely desir¬
able, what is enough but not too
much! Some one must weigh and
essary

reach

while avoiding excesses that would

politics. He has no more right than
has anyone else to try to impose

jeopardize the future.

iiis

business interests
government. But the busi¬

personal

upon

nessman

competitive business system.

capacity, intelligence and
ideals of the representatives to
whom we assign such power over
the

ourselves?

that

yet,

work
our

elected by the
our

sured

majority of voters
area, but will also be as¬
of the support of a like-

minded

majority

the

entire

in the Congress, the Legislature, etc.? :
///
group

Why is this so important?

What

of the powers you have

some

are

signed away? How vitally can this
power of attorney with the fine
print in it actually affect your
personal lives and affairs?
Take for instance just one
Taxes.

Taxes

are

thing:
inseparably tied

spending, balanced
budgets and the na¬

to government

deficit

tional

adequate

make

what

the

debt.

All

these

the present

for

final

Some one
decision as

run a

taken

to¬

for

appropriate

the

f„

income.
seriously this will adversely
taxable

personal

How

Politically

■s>-

Determined Costs 1

Urges President Be Supported

for

Fortunately

America,

for

and for me, we have now in
charge a man trained in military
science, the greatest winning mili¬
tary leader of the greatest mili¬
tary conflict of all time, who also
the balance of a comprehen¬

has

and

necessity

of sound economic
an

overwhelming devotion to

the maintenance of our free com¬

petitive

way

life,

Dwight

Eisenhower, the President of the
United States! There is no one in
who

world

this

has

broad background of

equally

training and

office-holders can
wisely spend more of your

regulations

political

Eisenhower

President

deserves

active, full support, the sup¬
port of everyone, regardless of
party, in keeping within the limits
of government spending that hehas set in his budget, now pend¬
ing before the Congress. Are you
doing all you can to help?
balanced budget so
important?
It is important be¬
cause the budget involves all the
Why

activities of your

Federal Govern¬
ment, and its balance or lack of
balance is fundamental to the fis¬

to our government's

which

obligations

its

meet

plastics,
*

business and work and live.

everything

good
jobs?

he in

earnings

There

does.

Where

be actively

promoting the

national

choice, in sound fiscal policies and
sound monetary
policy in both
parties.
The importance to the
strength of this nation of a healthy

and

many ways in which
collected in taxes is
By far the greatest amount

this

should

America without

business

are

money

interests

freedom

spent.
climate
for business is far too
of money spent in
government great to be the policy prerogative
operations is for the military se¬ of only one major political party.
curity of our country. I have al¬
It is business that must mobi¬
ways
believed that this country lize the savings and direct the
should
and can
well
afford
to expansion
by which we provide
spend whatever may be required jtbs for those already in the labor
to provide a powerful posture of force
and
for
approximately a
defense, adequate, together with million new people who seek new
the strength of our allies, to so
jobs every year.
It is business
f obviously overpower the aggres- that must seek, find and put to
; sion
of any group in the world work through the savings it makes
that their mere thought of mili¬ and the
savings it mobilizes, the
tary aggression will be emphati- new production methods that in¬

| cally deterred.
But I have

crease

never

believed that

.the. pursuit of this objective should

can

Paper /competes

glass-and steel for
items; and

tainers and other

with
con¬

so on

This kind of competition

on.

restrict/ your ex-' great

range

full

freedom

choice /is

and

ports

pricing policies.

stockholders, to pay your in¬
vestors for the tools their money

people

can

;

and

not

restricted

important item arbitrarily curtailed, the growing
of costs, which are more and more- strength and greater service from
bought, to buy new tools as the, in competition with wages abroad. r our whole competitive economic
machine is assured.
No govern¬
old become obsolete and must be We no
longer operate or sell in
replaced at much higher cost, to a vacuum. If any of our costs be-_, mental bureaus,* committees ' or
begin to be so ef¬
say nothing of the need for buying come non-competitive, it will sim-/ controls can
fective:
"'*
more tools to make more jobs for
ply mean moving jobs from Pitts¬
the
growing population and to burgh,
Public acceptance or rejection
Cleveland,
Detroit
and,
meet
your
customers'
require¬ Chicago and other areas here at - in a free market is the most po¬
ments for expanded production.
home, to Britain, Germany, other tent influence in the world.
This all raises serious questions European centers, and even Rus¬
These
are
just a few of the
as
to how, as time goes on, we sia. They will work and produce
many reasons why political activ¬
are
going to keep our business the goods, and we will have less ity, not once in four years, but
competitive with costs in foreign business and fewer jobs.
day in and day out, must be made
lands, which are engaged, with
Both wages and prices are sub¬ a large and important part of your
our tax help, in rapid moderniza¬
ject to competitive limitations that daily business burden. It's not
tion, improvement and expansion. will eventually control them, no enough to occasionally issue wise
How are we going to tool up for
matter how powerful a union may pronouncements or full-page ads.
continually more and better jobs? seem to be or what the price- Political decisions
begin right in
How can we keep unemployment
levels in an industry may be fori the precincts, with the election of
from increasing as the population
a limited time.
.//
good people all along the line
its

Wages

are

all, how can
and they ultimately become the
Priced Out of the Market
go higher
powerful voices that so vitally
higher so that this country
Both
labor
and
business
can
affect
your
future.
Your own
pay our high wages and still
price themselves out of the mar¬ younger employees must be en¬
And above

grows?

individual productivity
and

make

better

and

jobs

only

our

productivity—and it
increasing produc¬

from

tivity that

we can

raise

our

stand¬

ket with distressing

produce better and cheaper goods
to increase our scale of living?

with

only be reduced

sale,

These taxes can

government spending, is rela¬
tively reduced. There is no other
if

alternative!

tax rates, together
and increasing costs
of defense, raise the most serious
These

high

with the high

questions whether we can longer
afford some of the governmental

which

extravagances

are

growing accustomed.

last four

are

and

silk.

and

purestimaginative
increase competitive/
:
: /... /,/ /./,/.
corporate earnings than you can. imports
against you. Bills -are theory.;../.' /
So you are left with less than half right now being urged in Congress "/'As long as their full freedom of
of your company's earnings with that affect both your wage and: choice is preserved to the Ameri¬

can

experience.

Taxes and

would

another and with paper, wool

one

maximum

one-fifth to! that require the most serious cori87% over-all of > si deration.'-'/ //••/*/
of

minimum

isn't balanced in times like these,
government spending when will it ever be balanced?
inseparable.
Spending must Fiscal responsibility by our gov¬
be followed in equal amount by ernment now is essential to fos¬
taxes, sooner or later, inevitably, tering the confidence of our peo¬
if our country is to remain sol¬
ple and the rest of the world in
vent and if our precious freedoms our belief in the importance of
are
to survive.
The great pre¬ sound fiscal management. It will
ponderance of our taxes
come reinforce continued confidence of
from earnings of business, earn¬
our
people and the rest of the
ings from jobs in business, and world in the obligations of our
earnings from those who serve in government, in the dependability
one way or another business and
of the dollar, and be a firm indi¬
the people in business's jobs. Good cation to the whole world that we
profits and good personal earnings practice what we preach.
and wages are the foundation for
These
are
national
interests,
the
support of our government not party interests. Businessmen
'

cheaper meals' to

During the
spending for,;
cal responsibility or lack of re¬
fiscal responsibility, to inflation¬
our
most important military se¬
sponsibility of our government. If
ary
pressures,
to sound or fiat the government does not give the curity has increased only V3Vz%,
*
money, and to the entire economic
right, the responsible and creative while government spending for
climate in which you are trying to
lead, who will? And if the budget the rest of the budget has in¬
gether add

' •'
7 " J/♦ *y / ■' /"•"•
Other; competition limiting
>

•

time.

your

Powers Apathy Signs Away

;

must

sion

•

how many of us
to assure ourselves
choice will not only be

Worse

truly

dantly

balance that will be abun¬

you

how many of us really
take the time to know and evalu¬
And yet,

ate

has every right to defend

through the ballot our climate of
economic freedom and our free

clothes

it.*;

•»

from

the

defense.

engaged in politics, and it is the
he should be engaged in

products./.,.

do■

duplication

way

for*
-'•*"* '*''/■

and

businessman

the7 fevyer

supports

doms, who will use the power

price

involves affect our treasured opportunity \* The American businessman mustis nearly endless and it is more
in pro¬ in America and incentive and,the personally - take : a /far / greater/
■
The? important every day/:.
grams, weapons j or research, or vigor of future generations, only more active part in politics;
'
excessive
maintenance
of
out¬ time will tell.
largest items* in your cost sheet
V
6
' ;■/
Scoffs Prices Are Administered
are fixed for you by, political de¬
moded
methods,
equipment
or
Left With Less Than One-Ilalf
cree.
Politically determined costs/ •/The idea tbat a few people can
personnel, we damage ourselves
administer prices in a vacuum for
Your business is told by virture can price you out of your better'/
not only in terms of money, but
the American people with their
determined*
what is more critical, in terms of of the fine print on the ballot that markets. / Politically
unnecessary

and

farm'

and five-sixths of

for

tent our defense spending

nomic choice.*.

i in

Thursday, June 4, 1959

V The irony of this islthat so little/ prices which is increasingly im¬
Everything we do through gov¬ has been finally accomplished} but portant in our world of technolog¬
ernment, as private persons, or as at least it has added eloquent evi¬ ical advance is the competition of
communities, as states or as a dence why we must not have any/ old with new or improved mate¬
nation, must be paid for by the: governmental , experimenting '/in rials. Steel competes with alumi¬
concr.ete, wood, glass and
taxes that our free economy pro¬ price fixing in the steel business num,
/
: /*'
vides.
'
V.competes
with
*« plastics. ' Cotton
'-v.'./pV as some have suggested*
There are many more examples synthetics, and the synthetics with
Taxes take, as you well know,*:

your

prise system, our freedom of eco¬

outlay

increasing social
payingrthe bill for adeour

ciuate defense.

Politics

Become Active in

then *some,

while: at the same

living

time paying
costs and

(2542)

,30

creased

over

45%,

$2,700,000,000
cold

our

years,

than

While

year.

continues

war

and

the

must

spend so much tax money for our
security, can we afford to also pay
vast

such

out

these

other

essential

for

sums

desirable

many

but

less

expenditures?
only a few examples:

Consider
Can

large
cal

continue

out

pay

for veterans for medi¬

sums

that

care

way

con¬

with any military service
disability whatsoever?

nected

Can

indiscriminate

afford

duplications in our welfare out¬
lays in addition; to the growingadequacy of our social security
system?
Can we, to take a most painful
example, afford to go on paying
out many billions of dollars a year
in agricultural programs that dis¬
tort the economy wmle they raise
the cost of food for everyone?

Now mark this!
1959
in

For fiscal year

will raise about $6 billion

Federal

taxes

from

all surtax

take

by you to

couraged

active part in politics in their own

high price and no areas, and they will if they know
equally destructive to. the boss approves and is working
i
in all cases, the at it himself.
You are being challenged
responsibility of the government
by
should only be to prevent monop¬ highly organized groups that are
olistic, restrictive or compulsory strenuously and seriously devoting
practices by either, or by the gov¬ themselves to the political task.
ernment itself, to the detriment They already have a good start.
of the public, or eventually the; Highly organized, well funded la¬
whole
free
system will be de-- bor
groups
are
hard at work,
stroyed. Short of interference, the seemingly without full realization
system is self-correcting and self-; of the disastrous consequences to
policing for the benefit of all con¬ themselves of failing to heed the
cerned.
; simplest principles of competition.
high-minded,
if you
For instance, the theory is be¬ Theorists,
ing advanced that if only a few will, but wholly impractical, are
producers make and sell a large filling newspaper columns, writ¬
proportion of the total
of any ing books and making speeches,
with no practical experience and
article, that may prevent its pric¬
never having created a single job
ing from being highly competi¬
tive.
It is true that only a few or met a payroll in. their lives.
There are oti er powerful groups
makers are
thus in competition
with each other, no matter howT with a vested interest in high gov¬
bitter
may
be their battle for ernmental spending, without re¬
a

but

both.

However,

competitive position among them¬
selves, but that does not make for
so-called "administered pricing."
That
A

tells

only part of the story.

automobile is in competi¬

new

tion not

only with all other makes

of latest model but with all other

older models owned by millions

people who periodically have
their own cars for trade or sale.
our

the

price

quality and all

and

the other attributes of

pricing

not sufficient to induce the

are

buyer

gard for budgetary
deficits

debts.

consequences

All these and

busy
believe in

many more are

now.

system
of life, in
the lasting power of sound eco¬
nomics, in the freedom of the in¬
you

our

of free competitive way

dividual to
to any

an opportunity to rise
heights that his own merit,

intelligence

and

hard

will

work

take him, if you believe in a sound
and
solvent
America
that
can
meet Khrushchev's

challenge to

sale is war of production and trad^ as
made.
But again, that's only a well as of military force, t" en it's
part of what must be considered time for you to put politics high
bend your
ip pricing. An automobile is not on your active list,
only in competition with all other back, and put hours of "thought
buy \ the

frigerator,
niture,
or

car,

new

but also with a

automobiles,
Support Agriculture

Surtaxes

results—labor

high rate and no job, and

business with

re-, and eflort

television, new fur¬
an
addition to the

Talk

even

new

the job!

Employees and

Stockholders

house. It
competes with the whole scale of
house,

The

sound,

rates

higher than

the 20% basic- current living, down to whether
rate. Our outlays for agricultural the family buys extra new clothes
subsidies of one kind or another or even a sirloin steak instead of

to do must be

will

eat

constructive things
explained to all our

their

over

$7,250,000,000

during the same period — over
$5,250,000,000 being for price sup¬
ports alone. In other words, agri¬
cultural
surtaxes

programs
take all the
paid by all the individ¬

uals above the basic 20% rate, and

hamburger.
The

new

car

must

highly

people.
business

It is entirely
executives

proper

for

inform

employees and stockholders
corporate expense where their

appealing and attractively priced best interests lie. It is not a viola¬
for the family to take on the extra tion of law to do so. The dangers
cost of added monthly payments must be pointed out to your stock¬
and sacrifice the new furniture,/ holders and to your organization,
.

the

and

refrigerator or even

your

own

employees.

Their

Volume 3,89

Number .5852

...The Commercial and Financial Chronicle

^2543)

broad, understanding will b€ a
n»
Dwauih NumaiI ISau
mighty force. They must understand that poor business, means',
f)/||
V
CIaaL CvaL
poor
jobs'; thht" gdpd ^ :i5tisjnfissi; JII- 111 f ■ OIOCK CXClh +
means good jobs, and .Jhat higher
; ,A.
dlstinguished educator, Dr.
Courtney C Brown, whose father
come
only from greater produc- ^eld a seat on the New York
tivity and volume of sales.' They
for
sto(;k •: Exchange
nearly
a
must realize that our money is the
• * _■

S. F.

.Iffi mOWR 1131116(1 llOVi

Bank and Insurance Stocks

;Are

—

Insurancel^ocks

_r<5

their best interests and good

Club

busi-^^^

them^aye

to wonder when insurance

the color of dividend increases

seen

again

Editor

Of
this year's is¬

insurances.

sue was

ton

company invest> //• the' results coming out of
underwriting, plus or

It must
Of

the high purpose
patriotic citizen. It is

engage

every

"Courtney C. Brown

uate School of

the fire-casualty companies have been generally increasing steadily. First, they have

through which ,the Business,, succeeds Frank Hugh *
privileges of our precious Spark^President of the Council;

freedoms

made

are

function. for,. Financial Aid to Education,

It's

Jhird one-year term
.

insurance

but for the nation as

havein

you

whole,;jiggers,:

Chairman ." of . Libbeybusi- Owens-Ford
Glass
Co., Toledo,

your, owm

You

learn

must

that

this

day arid
age, the fine print on.the ballot
requires that:%
YOU

Public

1938

Governor

STAY ACTIVE IN BUSINESS!

AC VPV^~

"composed

■

•

wjwruv-the

American Commercial .lirid?t^presideridf the
■

•"'<

■'?*

Barge Line Secondary
©

....

Offering Effected
F. Eberstadt & Co; and

Ultll

.■

Aftmoftac

vftrani

group

r'.Wali,.Street's golf and ; tennis
championships will be at stake pn
Friday,'June 5 at the annual Field
Day of The Bond Club of New
York. Tournaments will be played
at the, Sleepy Hollow Country
Cliib", "Scarborough, N. Y.

000

cial

28 Offered

of the

about; 16%

company's stock.
The

and its subsidiaries constitute the largest water
carrier system operating in the
company

inland

of the United
(excluding
the
Great
Lakes). Eighteen states are served
on over 5,000 miles of- routes along
Gulf

the
and

Intracoastal

Mississippi.

Illinois

their

Waterway

Missouri,

Tennessee

and

some

Ohio,

rivers and

tributarie«,;.C6^.

mercial

Carriers, a subsidiary, is a
carrier of automobiles' by
another subsidiary is the
only barge carrier of automobiles
on the Mississippi-Ohio river sysmajor
truck,

tern tand

another

fersonville
builds

Boat

and

subsidiary, JefMachine

Co.,

barges,

and

repairs

American

Commercial

Barge

Line resulted from the merger on
1957

Amprioan

"Rarp'p

Aug. 1. iao, oi American Barge
Line Co. into Commercial Trans¬

' »'•

Aetna

6.16

Insurance

Equitable

1.99

1.63

American, Surety

1.65

1.00

2.40

2.62

1.80

2olf

C5?a/Je00ot ^

tourn'evs

Casualty

4.29

1.40

Insurance

3.72

2.00
1.00

p a\e s'

„

2.19

1.78

t^vei^, :br

2.00

4.15

1.80

2.00

common

compared

ing,

now

with

outstand¬

2.68,

1.00

1.50

____

2.00

chsmpi°i^hlpy w 1 be d
I y
Wallaice C Lato^ur 1 cl}L tSp'
Pierce»
anrf
p}ay }3ta^ti5 a^10 a'm' a d
finals at 4.30 p. .

Home Insurance

3.69

2.00

ing

Leavitt,

—

under

the

•

management

Chilson, Newbery Branch
Chilson,

Newbery

opened

5.13

2.63

Massachusetts

3.95

1.60

Co.,. Inc.

branch office at 37

1.60

sports events include
horseshoe pitching, hole - in - one,

National

4.05

2.00

7.90

1.90

4.23

2.00

2.45

1.50

2.77

1.40

3.81

2.40

6.30

3.00

GRIND LAYS'

AND

1.96

NATIONAL

Merchants

Other

tests.

Fire

'"New

and trap shooting con¬
Bond Club odds-makers say

New

^_____

Bonding

Union

-—

Harrilpshire

Northern

Insurance

horseshoe pitching offers the best

North River

^hance for a trophy due to the

Pacific Fire

u}»:^l^J™ ^

smalUurnout fot this event. How-

________

Phoenix Insurance

St.

A Forms Investaservice
Elizabeth Hafris is conducting
11

West

42nd

under

Street,

the

firm

New

Standard

U. S.

York

name

Fire

2.60

Westcliester

1.00

Nairobi;

2.00

Tax

1.00

Dept.:

Parliament

„

St.

Bankers to the Government in : ADEN, KENYA,

UGANDA, ZANZIBAR A SOMALILAND

PROTECTORATi

Branches in:
iNDTA, PAKISTAN, CEYLON, BURMA,

KENYA,

TANGANYIKA, ZANZIBAR, UGANDA,
ADEN, SOMALILAND PROTECTORATE,
NORTHERN AND SOUTHERN RHODESIA.

1.20

Ins.

Depts.: 54 Parliament
13 St. James's Sq.

1.87

5.47

STREET, S.W.1
SQUARE, S.W.1

13 St. James's Sq.; Govt.

St.; Travel Dept.: 13 St. James's Sq.; In¬

2.00

2.28

/_-_

Rd.,
come

1.48

States Fire

13 ST. JAMES'S
Trustee Depts.:

1.00

I London Branches:

5.52

Accident

Fidelity & Guaranty___

United

1.20

BISHOPSGAtE, LONDON, E.C.2

54 PARLIAMENT

2.18

EARNINGS COMPARISON

1958

As dividend pay-out ratios go, some

of these are rather skimpy.
And it doesn't look at this juncture that early dividend mark-ups
will be the order; 1958 underwriting results were poor.

Butler, Herrick, Marshall
To Admit James B. Carroll

now

conducting his

•

May, Borg Partner
Herman

Frauenthal

FIRE & CASUALTY
INSURANCE STOCKS

has

Broad

iri-

Casper A. Rogers oil June 4th

members of. the New York Stock

Street,

New

York

City, Co., 61 Broadway, New York City,
members

of the

Exchange,

o£ Media Investments 'Co.,
Leverton, Reiner Co., 39 Broad
offices .at 6381 Hollyivood way, New York City, members of
'

*'■*

L^
jhe XT/..,. V/xmL Stock Exchange.
New.York C4-/\nlr U'vn'U nvi iTn

July 1, will admit Exchange.

Mr.

American Stock

Frauenthal

Bulletin

James B. M. Carroll to partner- formerly
/.Vi I

w
ship.

partner

t mvitVi ft!
JP* Co.
Frauenthal & Pn

Request

was

Laird, Bissell A Meeds
Members New York Steek

Stern,

Ksehaafs

Members American Steek Exchange
ISO BROADWAY, NEW

YORK 5, N Y.

Telephone: BArclsf 9-8500
Bell

be-

Butler, Herrick' & Marshall, 30 come a partner in May, Borg &

Jaffe, Leverton, Partner

)

Head Office:

2.20

2.33

0.30

3.89

—

Security Insurance
Springfield Fire

securities business from offices at

City,

Paul

2.28
4.54

____

LIMITED

A/mafgamatirtg National Bank of India Ltd*
and Grindfays Bank Ltd.

Fire

Amsterdam

BANK

vestment business under the firni
from

roads.

COS ANGELES, Calif .—Jack L.

Boulevard.

constant

turnpikes and other limited access

Insurance Co. of No/America

name

speed on fairly level terrain. The
device is designed to reduce driver
fatigue during long journeys on

Hanover

Now Media Iny. Co.,

biles which maintains

3.00

Hir*wpfi

ington Street

manufactures

opened a
branch office in the $eitz Build¬

—

8.31

$10,096,000 Investaservice.
and $308,000. or 20 cents per share,
respectively, in the March quar¬
ter a year earlier.
Edwin K. Lloyd Opens
Foi*"the full
year 1958 these figures were $39,yinonnn
MISSOULA, Mont. — Edwin K.
408,000 and §2,716,000, or $1.79
Lloyd js conducting a securities
per share.
business from offices at 111 Wash¬

Stoll

corporation

automatic throttle for automo¬

3.74

Falls

3.99

w«i

The
an

Hartford Fire

operating revenues

the

York

5.13

Insurance-______

Seaboard Surety

equal

Hoffman & Co., Inc.,
City^ has announced
that all of the 300,000 shares of
Glide Control Corporation com¬
mon stock, recently offered at $1
per share, have been sold.
-i
New

Great American

were $10,902,earnings $876,000,
cents per share on

Issue All Sold

3.66

Glens

Hnnh^

Glide Control

General

by the San Francisco
in the past.

"Examiner"

Fireman's Fund

°\ th®se wl11 be hmited to senior
r -

for the Club

1.70

Fidelity & Deposit
Fidelity Phenix

One

Goetze, Frank KnowtCo., was Art Director;
"Tapeworm" was printed

The

_____

Continental

ntnL Tn?

Co.
Edward

ton &

Federal

aC»rn« 1

America, and Ivan Wing, Weeden

SYRACUSE, N. Y.
Spooner & Co. has

3.84

Continental

sP^'lal

Bank, Thomas Hodgkinson, ShearHammill
&
Co., Thomas
Hough, Lawrence Prager, Bank of
son,

Leavitt, Spooner Branch

51
46

Bankers & Shippers
Boston Insurance

Cup foi low^net
9^?hPr

the "Tapeworm" Committee were
Lawrence
Davey, Wells
Fargo

■

1.60
1.90

share.

net

3.15
4.17

Providence-Washington

and

2.60

Com-

Other

members

25%

$2.40

American Insurance

will

compete" for three top trophies—
Ex-President's Cup for low

a^d the

Dividend to
Investmt. Inc.

Agricultural

the

gross, the Candee

Ratio of
1958

American

Reliance Insurance

000

of bad

Dividend

'Jk_j_4—- $9.57

Ae.tnaf* Casualty

ever,
there is loot for almost
Corp.
Since that time the
nearly 50 prizes and
has paid regular quarX
awards are offered to contestants.
terly dividends of 25 cents per
.

years

1958

finan¬

golfers

best

district's

•

Hai, Jr.

Reilly,

relating dividend pay-outs to investment incomes

Invest. Income

Several hundreds of the

company

for 1958 may be of interest:

port

In the first three months of 1959

have been confronted by at least three

A tabulation

•

putting,

towboats.

An?

companies

waterways

States

May
publicly 374,602. !shares
par value common stock of
American Commercial Barge Line
Co. at $25.50 per share. The stock
is being sold for certain stockholders, who as a group will con¬
tinue to own approximately 240,-

of associated underwriters on

of $3

dividends be kept down.
One cannot criticize them for this
attitude, but it does not popularize insurance stocks to have so
little paid out in dividends when income from investments is on
the upgrade.

Tp Be Crowned FrHaj
.

cases.
.

Wan Street Athletes

Sr.-'

"ii*

and when these results have been as bad as
they were in this period, the managements are not merely loath to
v;i:,^b^ W-ofeome of them consider it mandatory that payments

•

...

fhoirman

cations

companies

Ol course, what has happened has been that the insurance

Exchange com-

:,rePMsetrtbig. the

■

modest, increases in most

Governors

other

old rates for

same

Chairman

the Publi¬

mittee.

Houston

holders in other fields have been doing so well with their dividerids. Eveii the "staid'' bank stockholders have seen steady, albeit

•

■

point and 1"t®!Lest;. in®Boar<1 1S

•

bring - to

Exchange's^ Board a closer

created

GET ACTIVE >IN;
YOUr W^]^T ivTO >HQre.rstaj

MUST

POLITICS

"The office

was

A number of the insurance

long time: Aetna Insurance
3
years; Agricultural
3 years; American Equitable, the same;
American Insui-ance 3 years; Boston the same; Continental Insur¬
ance 4
years; Firenian's Fund 5 years; Glens Falls 7 years (allow¬
ing for adjustment); Great American 9 years; Hanover 4; Hart¬
ford 9; Hom.e 6t National Union 6; New Hampshire 8; Phoenix 5;
Springfield 8. This, as indicated has been in a period where share-

fiess Machines Corp.

was

companies improved.

have been oivthe

the1 problems .Will, be^tfew.'. ":Cfoio,TahcfGliomas J. Watson, Jr.,
'ahd-/ydto:^hpl^irgahi^i<ih President of International Busi-

nes,

greater volume of premiums and incoming money,

But what of dividends?

area

and have passed on to their shareholders increasing amounts of
their net profits, so has the investment income position of the

will;pu.t
s&rcio cf£(yrt into §ct- as 3 Public (jovcrnor.
!
^
ting as good
representation in
The other Public Governors of
pelitics, not only in ;your own the
Exchange
are
John David
,

been reeeiying

Robert

Rich, J,
& Co.,

among

at least in part, is put to work in the securities markets. Secondly,
- just as the industrial corporations have prospered in recent years

worthy of your best efforts; inc.,VNew-York City, who is comand a- lpt
pfyou£; ;tirpe; rlf, y^

Jr,

Strauss;

Barth

„

But incomes from investments

vers'ity Grad-

Hous¬

Hill,

& Co.

growth flavor.
that, over sevinto underwriting
reason for doing so
was because underwriting profits were so large that
the company was amply justified in doing this for the stockholder.

the mechanism

great

V^in^^ve;^ what give the companies their long-term

shunnediarKilefto^y-ttb^t^,s.,GolumbiaUhi-;

press.,

:;;;V(^^p^h3|es;com!e almost 100% from the insurance
are

is
off the

outing

."course, is known generally that dividends of insurance

ni;Sta"d th^r®^re hurt theni/aitd .
j
;tKg ;•
what
helpful to; hoth.
this foundation fi^hty;
laid/wou^^yUpeJ ' : v
and they iyiust be
aetMfeii^ pplMi|^|
Q ^n
<? Political "a^vit^;^hst^mdt^e:'d ea n -.of the'j

annual

its

;

con¬

with

nection

Francisco,

San

getting along to the time when holders of fire and

^o^%di^dehds will be more in keeping with the income that the
epht^hies derive from their investment portfolios? These share>:^./l)®]^K|jiaye.rseeh corporations in general continue to up their
fi,yv$®*j^
in"direct 'cash' or as stock dividends, but few of

reduce'siliu-^A' pnhT ir
be=convincedtthat%rri• ■ rt•
• f ■;.

jobs. They must

FRANCISCO, Calif.—The
humor¬
newspaper issued by the Bond

San Francisco Tapeworm,
ous

This Week

•'

trade)/arid

-f

SAN

will. begin
of

"Tapeworm"

In 25th Edition

By ARTHUR B. WALLACE

;

destructive

Teletype NY 1-1249-49

Specialists in Bank Stacks

The Commercial and Financial Chronicle

<83

tion

year

out

many

opinion our industry has
point when these illupions must give way to the reaUlies
We must face the fact that
In my
reached

competition is rising—both from
foreign steel and from the growing effort of producers of other
materials to replace steel in domaikcts.

mestic
I
1

As
as

all will agree, le~
wu.
»-

sure
sure

gitiniate, fair competition is always welcome and desirable. It is
a
necessary force for the health
our

economy.

Competition has been respontable, more than any other single
factor, for our present industrial

And that growth is the
cause of our present standard of
iiving. That growth has thrust us
growth.

leadership.

into the role of world

have learned,

In the process we

the hard way,

that our very sur¬
depends on our ability to
compete. We know that our invival

dustrv"

anv

competitive

industry, must be

There

die.

other alternative

Competition in the steel Industry takes many forms. Price alone
is not always the decisive factor

however, they are growing competitively stronger every day, penetrating markets once dominated

expenditures

and

panies,

Competition?

by producing comlabor costs incorpo¬

rated in the cost of purchased raw
materials. Last year, the steel in-

eventually wages.

without

Be-

of all costs of

80%

and

costs.

producing goods and services are
labor costs —direct
employment

Who Says Steel Is
Immune to

pricing themselves
vital markets. ;

relative labor

tween

after

cannot avoid considers-

means we

Continued from first page

Thursday, June 4, 1959

(2544)

often

than

important

price in the competitive picture,
price
tne
piciure.

sales forces: thev

„

intensive research

our

foreign

goods

undersell
lower

our

prices

incomes and living
for all
peoples of the

Higher

country.

standards

Such cities as Chicago, Cleveland, Detroit and Buffalo are expected to become busy seaports,
As costly overland transportation
is
eliminated, the producers of

clearly. Last year our exof iron and steel products
from this country were only half
4is large as they were in 1957.
very

During the same period the ton-

everv-

Our industry has many endur¬
ing monuments symbolizing its
strength and progress for more

to develop

apply

increasing concern,
,

selves, and

our

„

elsewhere

earth

well

living in American Iron and Steel Institute
approved on May 27, the estab¬
lishment of a permanent staff po¬
limits to our own progress,
sition at the Institute—a position
Thus by helping under-develon

BMwtll Vic* Chairman

arc

poverty and want, there will be

should be able to
products at even
than now prevail.

our¬

to that
with the job.

resources,

objective, and get
Announces A New Function
those who are directly affected.
In recognition of the seriousness
So
long as millions of people of this problem, the directors of
benefit

will

world

This factor of lower transporta- oped countries we also are helption costs is another disadvantage ing ourselves by opening new
for American producers in addi- markets for our products.

Of N.Y.S.E. Board
Truman

Bidwell

has

been

which has never before existed elected Vice Chairman of the
^ ihe offices pf the Institute.
Board of Governors of the New
The primary responsibility^ of York Stock ^Exchange, it is an-?

tion to lower foreign wage levels.

American

price

steelworkers

American

see

competition we now face from
abroad — providing further in—

themselves out oi the markets. :•
of tne markets/

at their

crease

costs

cannot be ignored, and
be a major factor in our producers with much lower labor
competition wi th foreign steel costs? Obviously, we would not
producers whom we meet on the try to reduce the wages of Ameribattlegrounds of trade both in this can workers to the foreign work-

jports

age

employment

own

Favors Foreign Aid
Thus the great reasons for con-

tinuing
nomic

ers' level.

our

foreign aid

well

are

eco-

social ancl politi-

cal. Our objective must be to build

markets, not destroy them. This,
of course, is a long-range objec-

Opposes laritl Protection
Government action to curb irri-

tive.

is not the answer either,
Even if politically feasible—which
I seriously doubt at this time—I
am convinced that erecting higher
ports

nage of iron and steel products
imported into "this country increased 50%. A recent report by
our
Department
of
Commerce

chows that for the first time since

Such

course

eom-

definite export policy.

Traditionally,

■

•

purpose will be
to
help member companies in their
efforts to compete more vigorously
and effectively in both domestic
and foreign markets.

This does not

mean to imply, by
that our industry lias
been asleep. Far from it. We have
engaged in research and develop¬

any

means,

ment

nqw products and new
markets. We have improved many
our

existing products.
times

the

But

call

for

vast

stimulation of that effort all along
the line.

They call for considera-

tion of increased expenditures for
research

promotion in every
where the competitive

and

area

threat

industry has

our

^ f.

?
11 S
or- of Sprague &
gaoizationai irameworK or xne in- jn ammack,
stitute.
The

single

Suggests Steel Export Drive

S _?? anSfftx! Sm

nies planning to do business in
foreign markets should adopt a

would

over-

With these long-term objectives
in mind. American steel eomiDamind, American steel compa-

could erect
tariff barriers or quotas to prevent
or restrict foreign
steel imports,
Theoretically,

It cannot be achieved

night.

tariff walls is not the solution,

our

be avoided.

can

may even

country and overseas.
The official government figures
on foreign steel show the picture

new

present high level, how then are
we to compete with foreign steel

But price

doing

amazing

explore the mysteries of outer

space.

imports

of rising

problem

With American wages

....

are

enter an

and

tremendous taxes also include a new products and improve present and-one other products and uses
and lagging exports is not peculiar
substantial element of employment products.
—many of them quite humble
to the steel industry As one dralocaI ancl Fedtral
Moreover, our competitors show "ap<£
tLTS *
matic example, the following As- h
n .
imagination and resourcefulness. gt_S P.,, contirfue th
L ^ f
sociated Press dispatch was reConsequently the disparity m They are ever alert to opportunity,
ceived uncier a London dateline employment costs between our They are quick to seize upon and manKinaaown tnrough the years.....
on May 6—just three weeks ago: steel industry and those of foreign cjcVelop new trends in marketing.
As an industry which is vital to
"British exports to the United countries .cannot be allowed to
Remember
that much of this JJJJj Sa»
1}se' we have an
stales exceeded imports from continue if we are to compete, not COiT)()etition from other materials addJJd obligation to continue our :
America in March for the first only lft the world markets, but has come about since the end of £r°£fess to maintain orr com- ,
time since 1865, the year President
within our own borders.
war
Except for a few brief ^
ve P°sitl0n» to grow ever
Lincoln was —
- assassinated.'
Next we need to help and en- periods, the demand for steei mill to Tbetter Ind stronee^AmerieJ *
Moreover, the opening of the courage to the fullest possible ex- products in these years has taxed .
,
..
great St. Lawrence Seaway
is tent every practical eftort to raise our available capacity. With the tril.VitlL lo m^atm °
bound to increase competition still the standard of living m ioieign completion
of recent expansion- h
,
■
,,
>
°
?
more
as
foreign producers take countries-to lift the level of con- programs the competition of other
t
sumption
end Vade the world StetaS,"
Tof loJeign it"
thaF ek
other peoples of the world.
advantage of the lower transpor¬ over.
There is plenty of work ahead
matter
of
steel, is becoming a
tation costs to the heartland ol
for all of us.
Let us
The

roreign competition

producers of these materials are competing, and competing vigorously, to expand their
markets.
They have aggressive
The

Hlgher standards of living, with
steelworkers are higher wages, will be an effective
among the highest paid industrial weapon against the further
by any means.
Quality, service, employees in the world. 1 am glad 0f communism abroad. And fiassurance
of a dependable and that they are. I am in favor of nally, these higher wage levels
continuous source of supply—these high wages, but I don't want to will ultimately help even up the
are

are limitless. Pioneering is
not dead; there are trails still to
be blazed. New horizons are ahead

held exclusively by steel,

And remember tnai our

services.

future

now

who has

re-

tired from the
Board.
Mr.

;

Bidwell

was

elected to

the

Board

Governors

for

three-year

term

iruman

1958.

biawell

Prior to that
he served from 1953 to 1958 as a
member of the Exchange's Board

of Arbitration.
• *
f, u.ne^, \*ce ^nairman £as
".eld **ls
sinc.e June, 1941. He has acted as
an independent floor broker •spe_

cializing in institutional business.

exists.

...

W. Pi Bullock Opens

The competitive contest will be
decided by the public in the ballot
box of the marketplace. The votes

early in the century imports of pletely inconsistent with our for- been an in-and-outer in the world
prevfimnf
Wvo—Warren P
foreign - made steel are now eign policy objectives. What is steel markets. We have been inRtmork
a securities
greater than the amount of steel worse, it would be unrealistic, im- terested in exporting only when wili be cast lor steel or for combusiness from nffiees at 1509 Bent
being exported.
practical and self-defeating.
we had surplus steel available.
peting materials on the basis of busmess iiom offices at 15 .
Our present inability to meet
The role of the United States
But customers abroad, like cusmerit, service and costs,
the prices of our foreign competi- in the world today requires that tomers at
home, want some assurWe would be less than honest
'
p* cf pa •£•
Ur~nrU %;•:
tors is costing the industry dearly
we
expand, rather than seek to ance of continuity. The answer, it with ourselves if we did not ackrusl raciric ^ancii
in tonnage and revenues.
In turn, restrict, international trade. There seems to me, is for interested comnowledge that there are some inSEATTLE, Wash.—First Pacific
our employees are feeling the efmust be freedom of access to raw panics to set aside a certain
perstances where some materials may Equities Corporation has opened
TPftfil in
fnrm
of
TPWPl4
nnnrs
moWinlc
miiof
Ka
1001
HPU ^
Atro
Tnp

•

wnat

trade

change
In

rvv^v

happening m loreign
the result of a drastic

tiie

world

situation

U11M

a.v/vit^r

war,

fOT^gnsteefmills

gave us little competition in world
maikets.
Many of the plants in

Europe andj apanwere either destroyed or badly damaged during

CIS

Cclll

11.

ration will not permit us to retire

merchandise and sell that tonnage

eSen?° levels ° if

at
not

import essential

raw

Meei ^'"'S

woufd

material

components.
needs

the world

undertake to

cases

the

onlv

sensible

course'is

to face the fact and

rect

efforts

our

areas

°m';
Competition

problem of
at home as

competition is with

would

abroad.

must

COVTNA

Cal

Pasadena

Corp

opened' a branch office at 245
ofgthe Reasons West Badillojt. under the man-agement of William R. Kelley.

Jhesefare

Substitutes

Pasadena Corp. Branch

di-

where

vi®01'0us|-y as w.e would sell profitable results can be expected.

well

us.

such

should

I have said that the

We need the world

CtfilSUX

supply of steel

Then,

world of atomic energy, intercontinental missiles and space explo-

gears'^imSately^ol- we^uldMViMlo^mkke

lowing the

nnnni-

t ^nduntintf

get rid of two great illusions,

namely, one, that our industry is

17!,^.

jvfamo

-New rirm Name

wholly immune from the competition of foreign steel and other
materials: and two, that we can

JERSEY CITY, N. J.—Effective
tne war.
inose wmcn escaped deKeeping in mind the real nature explore this aspect of the problem
June 1 the firm name of Sloan,
struction or damage m many cases of our
problem—namely the lev- for a moment.
let our costs get out of hand with- Rodetsky & Co., 26 Journal
were worn out
and outmoded by
eled-up technology and low wages
As an industry, we are faced out reaping serious consequences. Square, members of the New York
tne end oi tne war.
abroad—it seems to me the answer with the
challenge of a new comChange is a basic law of nature Stock Exchange was changed to
i1 tW
situation has to foreign competition calls for petitive marketing situation on and in my opinion changes of far- Rodetsky, Kleinzahler, Walker
as

Amf1Can two courses of action'

fhnciA

Sf SJS't T'

fnrpUrn

rfutfes

have
oave

Wn
been

reouilt,

ernized and expanded. In
new

plants

have

are

gressive

programs

at ultimate

built

our

fying

these

steel industry,

(Special to The Financial Chronicle)

engi-

neers, architects and designers.

Among the most prominent of
psp
matprinls
these materials nm aluminum
are aluminum,

have

eve^y
every

that
mai
this industry will recognize these
i

nave

confidence
eunriuence

changes^rid Tak^thef^eces^ary

di^erential..abroad- When laws glass, wood, plywood, plastics, steps to prepare for them lest its
f
regulations prevent this, as pre-stressed concrete, copper, ti- prosperity be impaired and the
for example the present Federal tanium, and magnesium—a formi- jobs of its employees be put in
policy on depreciation allowances, dable
group of

Pnnrfu,A„0

PAUL, Minn.—Kenneth H.
Bayliss, Jr. has been added to the
ST.

far below the

largely

and speci-

such

petitive in order to offset the wage

U^er nrilem
11* shauld work actively to get
^♦
S11 cl?anged- ■
inaustrj must recognize two
Keeping our costs under control

our
our

aimed

consumers

authorities,

new

every

countrW
countries

our industry needs to bend
effort to further improve
own technology and efficiency

the Part of producers of other ma- reaching significance in our com- & Co.
terials. In the period since World petitive situation already are visIrving Rice Adds
War 11 they have developed ag- ible upon the radar screen of the

^addition

favorablvPwith n?^r
Zrse Ll l

pni.r

more com-

technology

eUm
eign

One.

t*™

never before trol. to keep our costs under conand Our costs must be

^feelnS

made steel.

The

been

mod-

Fflvnr«:

„imnnY,n

+v.«,

competitors, indeed, jeopardy.

f Irvine J

Trfr-nt^nr^H

Rice & Company

pinnPPr

Bnhdine

lncorporatea, irioneer uunamg.

With

Robinson-Humphrey

(Special to The Financial Chronicle)

ATLANTA,

Ga.

—

Benjamin T.

These various materials do not

In spite of all the problems I Daugherty has been added to the
yet compete with steel in all mar- have cited, our industry is still on staff of The Robinson-Humphrey
kets

any

means.

group,

the march.

Our prospects for the

Co., Rhodes-Haverty Building.

Volume 189

Number 5852

Continued J
from

lying factors still remain, so that that a budget deficit in present liberalize further their restriction®.

rin op
5
ruye °

There Has Been

1BTam1|I

should

new

era,

one

This

It is what

gratifying.

the

United

Kingdom remains
steady at 18% after having fallen
continuously
during
preceding

export surplus this year will
shrink to only about $1 billion.

The steady surpluses in our
balance of trade lead many people

vestment, the efficiencies of large-

to the comfortable conclusion that

scale

production, a highly skilled
labor force, and technical leadership, so that our goods have been

our

turing in the U. S. are three times
as high as in the United
Kingdom

expenditures,

been

balance of payments is in surPlus too. As I have already
pointed out, this is not true. Our
able to compete abroad despite invisibles, including foreign aid,
the
highest wage costs in the capital exports on both governworld. Hourly wages in manufac- ment and private account, tourist

and almost four times

high

Germany. It is true that wages
been rising abroad as v/ell
here, but the significant fact
is that, with our
help, Western
Europe and Japan have recoil-

have
as

structed

their

stalled

the

industries

most

in-

and

modern

labor-

other services such as shipping
and insurance, have been far
larger than foreigners needed to
cover the excess of their purchases
of Soods and services from the
United States, as well as their
other payments here. Last year
alone the cash deficit in our balance
of payments was on the

transactions

insufficient

capacity abroad,
together with the faster pace of
inflation in

for

to maintain

steadily whittled away the U. S.
advantage.
During
the
dollar
shortage era, lower productivity

some

it possible for

payments

and

countries, made

As they have
expanded their markets, they too
have been able to take advantage
of the economies
of large-scale
production
so
that
they
have

and

order of $3-4 billion. In other
words, we provided foreigners
with many more dollars than they
uscd here- During this decade of
the '50s, we have been net supPliers of dollars to foreigners at
the rate of almost $2 billion a
year- From 1950 through 1958,
theY were therefore able to add to
their gold and dollar holdings
$l3-7 billion as a result of their

saving equipment

our

prices without it affecting our exports. But this is a matter of the

past.

with

United

the

States. Unless the present trends

our

accepted
all

know

m,.

striking

of Convertibility
ti(m q£
J 1ld not intend to be a prophet do not see how anyone—after takend of the dollar shortage era
?f
lhave abYndant faith ing a look at the American trade
what are the consequences for ou^
lhe Aresill.ence and dynamism and balance of payments picture
foreign trade?
?[
American economy and m as j have tried to paint it—can
Until quite recentlv U S
resourcefulness of our busi- conclude that a policy of creeping
chandise
exports
were
running ness
teaders. We are still far jnfiation is good for the United
wen aheada?' }\ 18 3ust that we haYf to States, much' less for the world as
ports
In 1958 ou^ exports
&£ U£C
s°me.new competitors. a whole.
Performance
have

to the

come

mer-

were

exports were There

almost $16.3 billion with imports
at about $13 billion leaving a comfortable export surplus
of $3.3

billion.

On the other hand, we
$4}£ billion export surplus
1956, and for reasons that I

had
in

the

petitors

ping $6 billion export surplus in

stUl

trade

figures

for

the

firrt

old"?

our

products

have

our

well

com-

agai

productswe
exports

our

Technologically

4l'

Our

while

doin-

exnanding

are

newer

fields

The

that

arc

some

have already mentioned, a whop1957.

already indications

are

figures

tead

friends

many

abroad

must

to
"o?
things
Th^ m^ans th-ft X^hararter nf
SXts "our exnort mix »
come

eye

the

dollar

United?

the

States.
Fortunately,
the
lines of our trade policy
pretty well resolved when

main
were

Con-

our

questions about the position

retaliation

bring

only

start

and

wifch us.

This is the measure of growth of world trade in the lasfc

the world's confidence in the sta- few years.
bility- and value ot oui dollai. We
Actually, it would be difficult
have increasingly become the for us
reduce our imports subbanker tor the world. We must stantially even if we tried. Twomerit that continence.
For this reason we cannot afford to be too complacent about
the gold outflow. The outflow
has resumed recently and is certain to continue this year, partly
because of the underlying inter-

\r AneiY ?as "eeaa
basic change. Never before m this

fifths are for raw materials not
available domestically or needed
to supplement inadequate domestic supplies. Of the remainder, a
large part consists of foodstuffs
most of which cannot be grown
domestically.
Fourth.

should

encourage

Congress to pass the pending leg^
isiation embodied in the Bogga
gill which provides incentives foy
American private i n v e s t m e n t
This

abroad,

investment

urgent need of

many

the*

of the de-

countries. In the long
sh0uld help take some off
problems off the back off
our
government.
This will not
only help the budget, but each
dollar of foreign private investment accompanied by our knowhow js 0ften worth several dollars*
of aid or credit to the recipient
countries. For that reason a sound
velopiiig
it

run

theSe

„

increase in our private foreign
investment would not necessarily

the balance of payments*
problem that is foremost in my
mind. Often our capital contribu—
^0]1
made in the form of machinery or other exports, anyway,
wonder.
Creeping infla- Managmg Director of the Interna- Furthermore, in the long run these
I find, are very fuzzy and Clonal Monetary Fund, stated that investments should earn a good
about the effects of their rhe gold outflow
represents a return and experience has shown
on the international posi- warning about |he trend of costs that
our
industrialized friendsthe dollar
For myself I and Pnces
m the United States USUally become better customers

evasive
policies

Now that

its

not forget that the world

national payments situation and
MacMillan Government made the partly because of the gold paygreat decision when it took the ments that will have to be made
Thorneycroft measures of Sep- to the International Monetary
tember, 1957. And it is significant Fund later in the year in connecthat sterling has been growing tion with the 50% increase in
stronger ever since. At the end Fund quotas. The United States
0f 1953 the French finally did it alone will have to make a payunder General deGaulle with the ment of $344 million in gold. The
result that the French franc after extent to which other countries
decades of almost steady depre- will use their dollars to buy gold
ciation has once again become a from us to make their payments
sound currency. France has gained to the Fund is unknown. It is well
reserves steadily and rapidly this for all of us to know and anticiyear and the French authorities pate these facts about the gold
are so confident that they have outflow so that we can put it
decided to introduce the so-called into proper perspective. While we
''heavy" franc, a franc that is in- should not be complacent, I do not
tended to be stable.
want to be an alarmist either I
The question that I now put is was impressed recently by what
ibis: Are we ready to accept these f world authority on. this subject
disciplines ourselves? As I read had to say at the American Bank^he speeches and writings of some ers Association Monetary ConferQf our creeping inflationists, I be- JJ?ce 1!1 London.
Per Jacobsson,
to
tionists,

this year.

Our Recent Foreign Trade

those

about the

of Germany, Italy, Austria
an(j japan — countries that have
rebuilt their productive capacity
and raised their standards of living rapidly in this postwar period
while following sound monetary
and fiscal policies. I can add many
other countries to the list, including Switzerland, Belgium and the
Netherlands, for example". The
United Kingdom was slower to
accept these disciplines but the

reversed, they could acquire
as much as $3 billion additional gjn

are

* *

has

imports from

against

of the dollar. And no wonder, a movement away from the more*
competitors Foreigners held some $15 billion liberal trade policies that have*
disciplines. in official
short-term balances done so much to stimulate tha

cases

manufacturing goods for exOur competitive power has
based on heavy capital in-

port.

Let

were

principal

that

You

The Cash Deficit in the
• ®a'ance
Payments

We still have the biggest stake

resist-

our

j should like to point out to you

have

years.
.

lowers

have wanted all along; but it than on any other currency. I gress last year renewed the ReciprAClllAH brings with it the need for dis- took a round-the-world trip last rocal Trade Program until 1961.
A VAAIlVlft ciplines to which we have not fall. Everywhere I went, there Any reversal of this policy would
been accustomed.

circumstances

countries ance to inflationary trends.

among

■■

flfc

TfSIVA

VTUillK

competition

with convertible currencies.

Basic Change
l

f|ny

entered

have

ylll

(2545)

The Commercial and Financial Chronicle

but he stated further: I do not
think the U. S gold outflow represents any real threat to the dpitar. With the U. S. A. possessing

iSnnVi hi
i
*?.,,» ^
u d be bs d to s y
^

thls-

I am hopeful about the reaction

of the American people. I
thot roront

:.^t/

nlens

mnork from

orour

romi

told

ihp

"rass

have

P°8twar ?eri?d bave Ye, had
been
look s0 closely at our balance of b?enei^couiag]E&^lnn

writ-

Worsen

because their higher standard off
Uviftg increases the demands for

the things we have for sale.
.
Fifth and finally. We can help
by explaining these cold facts off
changed world economic position to our friends, neighbors*
employees, to all with whom wo

c0n?e

into contact

cu
u
* Economic achievements in Eu~
rope and elsewhere place ne«
obligations on American economic
.

„

Paymei}ts position nor take it into
their Congressmen
statesmanship. The world is still
acP°.unt as a major factor deter- in|lthe^ C™gr*SS
largely dependent on the mainmmin& our domestic monetary
.Second. We^shall have to take tenance of our economic soundand fiscal P°licies' Pur ^mpeti- a close look at the international ness and strength. The challenge
tors are ^uite accustomed to this financial burdens that we have to U3 is to keep our goods comand they have now learned to re- carried so largely alone since the petitive price-wise in international
.

SSSsSS
for
biUlon

1959

will

onlv

aeains^the"

in s

s^M?etort^tsakC 0tte^hS,"tenrd people programs must goon It is essen- ^cost challenge. Our
to 'be ^.^".^00^° Tl'so
^SilUies
export markets. slow because the American
this
t

nniinn

position
?■ addlh«";. as 1 pointed out have not yet awakened to the full tial for our security that we con- o{ leadership in the world do~

1"i

the

success

secure

e*nort<?

for

1959 wfU

Sinn

firirt

t'ne

nLhahlv
Z ih!
,

Quarter

of lSM
oiiy&a

quarter

mnrtor

„

run

epJ/Japan't ?ut .manp
2nd. fnni

of
thf-'s,e la£tors are changing. Cer-

which
which

„
would

about equal to the figure for the
smallest quarter last year.

tamly' longer be expected to im,Eul'ope,s terms of trade
no

can

prove
as

j On the other hand, merchandise strengthens
estimated"

imports,

billion

all

over

the

commodity

be helped as Europe swings from

up $100 million from those of
previous quarter and up $500
million from those of the first
quarter of 1958.
While our exports seem to have lost their
buoyancy, our imports are characteristically rising once again as

period of inventory liquidation
one of accumulation.
As the
European and Japanese economies
resume their expansion, there will
be a greater strain on their resources with a consequent weakening of their export capabilities.
The productivity of American industry has surged forward rapidly since the beginning our recession. And our competitive position
will be helped, of course, as discrimination is removed against
American goods. Those who know
Europe can readily imagine what

are

the

business

improvement

has

tinued during recent months.

con-

The

rise in industrial production which
is one of the most significant indexes

our

recovery, may
be
expected to continue, supported
as it is by the growing volume of
unfilled orders and general conin

fidence

the

business

outlook,

Under
are

these conditions, imports
likely to increase and on an

annual

basis,

billion

may well reach $14
about $1
billion over

!958.
If

our

exports and

imports do

in fact follow the trend indicated

to strengthen the economies of our allies and still an-

VII

Conclusions

rj:.
What

, r

implications for

the

are

the U. S. of this new era of com-

petition

rencies?
but

among convertible curThe answers are not easy

when

urgency

at least
First

of
on

problem

the

the
are

the road to a solution,

militantly fight
stability at home

must

economic

for

recognize

simply because our vital self-indemands
this
stability,
There is no other way.
It would

terest

foolhardy

done

much

our

part, having

build

progress

to throw it
ab aWay because we do not have
the self-discipline to live in the
a market there could be there for
bind of world we have helped
American consumer durables,- if create. This is the reason we must
only it were wide open to us.
support President Eisenhower and
in

other

some
of the
that brought
the end of the dollar shortage era
to us with such a shock may now
tend to change or disappear.

temporary

by these first-quarter figures, our " *

wnu uui

aid

prices,

The United States position should*

words,
factors

On the Other hand, some under-

ei>-

currency

world

for the first quarter of this
year,

our

ic&jjunaiuixih.y ivi
^
u.«vu.
ana SlUUIiity.
The whole WOlTtJ
that has become the m the foi-m of military hardware would regard any weakness in tho
world's principal standard of value that by going to friendly countries dollar as a signal that America la
and the largest repository of its actually reduces our defense bur- josing the cold war.
foreign exchange reserves.
den at home. Another part ot the
■•■■■.
•
:
SlSLCUl

and they may well worsen

recovery

economic growths

and

stability abroad,

Secretary Anderson in their fight
a balanced budget, and a sur-

for

plus budget, if possible, and the
Federal Reserve System . in its
courageous

moves

maintain

stability. There is r.o question but

goes

r'ociAnfl

Or^nc

VP""8
other part helps us to dispose of
John H. Firestone is conducting
our surplus farm products. While a securities business from offices*
these programs arc necessary, we at 372 West 46th Street, N. Y. CL
must be increasingly careful that
•
;
_

defense dollar and every
aid dollar is well spent. At the

Gordon-Mannelly Opens

every

time the growing strength
of Western Europe and even of
Japan indicates clearly that it is
time for our allies to begin to
shoulder a larger share of these
burdens. I feel we are also right
in our insistence that the developing countries too should demonstrate that along with our aid
they are at the same time ready
and willing to help themselves.
This is a long-term job—far far
longer than the reconstruction of
Western Europe—but it is a job
that must be done.
Third. We must not be tempted
to solve our balance of payments
problem by a reversion to a highly protectionist policy. To do so
would make it impossible for us
to press our European allies to
same

;

tnT™ facial

_*1"

BE,;EKK,

cnRom(*E)
«...

r'n

rnr

Trir»

don-ivianneiiy seem iues yo., xijx.

has been lormed witn oirices at?
93yyy wnsnne couicvdia to
S.aSe 111 a

iicers are Milton uoraon,
dent; Jonn r. Manneiiy

ea"

Fresiaent ana rreasuiei,duu a

M. Fulop, secretary,
«il

Shearson, riammill Upend
Phoenix Branch

PHOENIX, Ariz. — Shearso%
Hammill & Ca- basapfaed a
branch office at 3300(North central Avenue under the manage^ent of James J?. mcu
McGinnis was loimeriy wnn
ston &- Co., inc.

ai■

The Commercial and Financial Chronicle

(2546)

Two

Continued from first page

Recovery

fundamental

What Is Our Position in the

which

several

for

firm

Cunent Business

Cycle?

catalog of such formidable queries
the
total presents a picture of
For

months

some

the

recovery

last
was

year,

getting

there probably was a

under way,

introduce

will

This

"compact" car.

into the industry

dubious character.

when

have the

will

legitimate reason for some doubts.
At that
time the recovery was

implemented
primarily by the
sharp reversal from drastic in¬
ventory decumulation to accumu¬
lation
supported by a
Federal
policy of deficit spending. There
is reason now for believing that
American business is experiencing
an old-fashioned cyclical upswing.
All such cycles have their begin¬
nings and their endings. Since the

item

new

while the popu¬

of the foreign cars will
probably influence the styling of
larger
models.
Something
new and different is being added
larity

our

it, the environment
is conducive to greater interest in
so,

we see

automobiles next year.

Capacity

and

years

basis for

progress

last

provide

conviction that

our

business

plants,

capital expenditures
discussed
one
often
hears

and

secular growth trend of the econ¬

this country. After many years

said, it is our
considered judgment that the up¬
ward phase of this business cycle

old

omy.

will

have

continue

give

years,

before

another

for

take

comes

two

months

six

end

all

cycles ultimately do. What is our
position in the current business

are

The

the

Twelve

will

draw

money

tern

ally

and

Months

are

ward

not

Still
This

the

Ahead

is not a flash in
not a oneshot burst of
activity of a year's duration but
the

normal business cycle. The rate

of advance may vary from quarter

sectors of
the economy may forge
ahead
while others hesitate or recede,
but the broad trend will continue
to

and

quarter

some

upward. It is pur opinion that
approximately two-thirds of the
recovery .cycle is still ahead of us.
should

That

the

for

basis

forward business planning.
The breadth of the business

re¬

has widened as the year
has progressed hut there are two
areas
of economic activity
that
have
not
kept pace with the
recovery. The first is the auto¬
covery

industry.

steel industry

million

150

roughly,

of,

tons.

this year will

consumption

Steel

approximate 110 to 115 million
tons, and next year probably 125
million tons.
So one reasoning
figures could say that

from these

over-capacity in the steel

there is

set

The

end of this year the
will have a capacity

the

recovery

pan,

steel

the

industry. However, only about 50
million tons of this capacity have

quarter

In¬

Board

144 in

the

1959.

5,500,000 reached that age in Rus-4
sia. This is the reason why Russia
graduate so many
scientists in the last few years,
has been able to

why it has been able to make sub¬
stantial

capacity

Some

was

but
little was put in place during the
depression years
of the 1930s.
Thus a large part of the .nation's
steel plant is over, 20 years old
during the

added

years

war

and probably neutral in physical

volume when price increases are
allowed for. The fact that these

National

Product, which
averaged $467 billion per annum
in the first quarter of this year,
increase

about

billion

$25

have lagged is a good reason
for expecting
the business re¬
covery to continue.
Acceleration
in

the

rate

duction and

automobile

capital

pro¬

Expenditures

will lend support to the business
recovery.

There

are reasons

for anticipat¬

com¬

Rising

wages

higher

means

prices,
which
in
turn
invites
competition, and this encourages
capital investment in order to re¬
duce
production
costs.
Capital
investment, meaning more goods
at lower cost, is the best weapon
against foreign competition. It is
best

the

Russia's

answer

eco¬

for

United

States

Russia

and

6^2

about

million

cars

that con¬
sumers will spend $16-$18 billion
more, (annual rate), in the first
quarter of 1960 than in the first
quarter
of
1959>
The
general
price level we think will advance
about l%%-2% and the average
year.

expect

way

of increases

what

look

for

the

ing

further cyclical recovery in
production. The last

automobile

;

Research reveals that

automobile

companied

new

surges

production

1955

have
innovations.

the1' innovation

was

ac¬

In
the

adoption by automobile manufac¬
turers

of the wrap-around wind¬

shield

and the generally greater
of glass in order to enlarge
the scope of vision. Chevrolet and
Plymouth also
introduced
V-8

use

was

true

businessmen

in the physical

must

wrestle

with

and that is the cost of money.

the

rapid

decumulation

ventories, which reached
nual

rate

about

in¬

an¬

billion in
the early part of 1958. This year
inventories
to

the

billion.

will

extent
Before

accumulated

about

the

cycle is

com¬

engines in their lines. These in¬

pleted, i£ history is to repeat it¬
self,

solete

functional

both

cars

appearance

character.

ob¬

and
year

the

further,

rate

will

probably

$10 billion

year.

increase

still

high

Russia

had

140%

flight of the im¬

less. This is not a

statistical

approximately

know

children were born in
Russia and America in the decade?
of the forties and, therefore, we?

how
.

States^

1965 she will have 8%

whereas in

fact;

1958

18-year-

Unitted

the

than

olds

Russia.y
in

way,
more

many

how

approximately

know

many

18-year-olds there will be in these

United States the

sixties.

outlook
and

defense

because
when

field

that

the

typical

age

enters * the
education, and
they, become available for

when

program.'In

young

person

advanced

the labor force

vice. .When

and

one

military ser¬
at 4he 18

looks

old age group of both'"coun¬
striking contrasts

year

tries some very

the

Six

decade

•"*

■'

expenditures

changes in the pattern of

Russia
they relate to the Seven-Year
Plan and the available -supply bf
scientists and engineers, and to
manpower in general. The discus¬
sion centers on the 18 year olds

the

countries

relation'^ to the

capital

for

become

apparent.

years

sion

and experienced no depres¬
as that which occurred

such

narrow¬

and because of the loss of

so many

take some, of its younger men the-birth rate
market was slow to recover after the war.
temporarily, as will also a slow¬ In the United States; on*the other
ing down in domestic, business hand,- the birth rate rose all dur¬

pressure

novations rendered

old

risen. This

ing

accentuated

the

V.';'

Years

spacing .in this .age ;
during the riext
six years a very different story
as
to the relative supply of per-;
sons available for scientific train-?,
As the

new

changes

group

forces

armed

and

has

executive

out

gone

it
of

make

large

for

compulsory

will; evolve-.

•

Already in. Russia
order

working,

additions to the

Hig and

groups

children to work in factories

when:,

they reach 16 years of age. Only-,
the thoroughly competent will be ,
selected
for
scientific • training,'

shifting labor
industry are •,
dollar volume of business as v The first contrast is during the in operation. You may have seen
well as rises in material and labor
depression of the 1930s; in : the reports in the press of Premier
costs looking ahead 12 months.. As United States when the birth rate Khrushchev's recent speech on the:, ;
the business cycle develops this in this
shortage
in Russian. in-fJ
country declined sharply- labor
upward trend should continue..
from, roughly, 26 per l'OOO to 17 dustry. These-new -developments i
per
1000. Russia, on the other in Russia are better understood
Sees Higher Interest Rates
hand, was still working itself up when one studies the age groupof the Russian population *
There is another cost that most from, its revolution during those .ing

1957 and the subsequent recession
was

another

Stated

calling

Plans

for

agriculture to

from

and

business

States than in

the United

inferences

This

major interest in both Ameri¬
can
and Russian affairs. Til the

nomic

substantial rise.

by 1,500,000 to 3,800,000 or
65%, whereas in Russia they will
approximate 3,500,000, a decline
of
2,000,000 or 36%.
In other
words, the year 1965 will see the
number of 18-year-olds greater in

and. to

our opinion, both short- and longin the United States and capitals
challenge, the best means term
money
rates
are
going istic world. Every inceiritive was
fighting inflation and the ac¬
given to increasing births: in-Rus¬
higher.
peak occurred in 1955 when al¬ complishment of accelerated eco¬
With the freeing of international sia and the birth rate averaged
nomic
growth
which
is
the
most
eight million
cars
were
an
estimated 36 per 1000, or
American way of life. The pressure currencies abroad and capital nOw
built. Last year only about 4^4
to
flow
back
and
forth double the rate that prevailed in
of domestic and foreign economic able
million cars were produced. Re¬
those years in the United States.
international
borders,
forces demands greater capital in¬ across
payments
of
instalment
credit
The next contrast appears in the
vestment. These forces cannot be money rates are no longer largely
exceeded-hew extensions at that
nor
resisted. It is our a domestic matter. Money may period of World War. Ill While our
time and personal savings were ignored
casualties were high they were
now
move more freely to where
increasing - materially.
Personal opinion that capital investment in it is
able to obtain the best return. modest as compared with the men
1960 will be as much as 15% to
income has«been rising steadily
20% greater than in 1959 with The higher money rates that pre¬ and women lost by Russia. Our
since early
1958 and the con¬
vailed in Europe when currency country physically and its civilian
further
increases
expected
the
sumer is in a financial position to
restrictions were removed
some
population were .untouched,
sttp np his purchases of new cars following year.
months ago drew funds from the. whereas Russia suffered great ma¬
and other durable goods.
Rising
The Inventory Picture
United States. This together with terial property damage andjlarge
confidence in the business out¬
As business cycles progress the divergent business trends in the civilian losses through - invasion,look,
coupled " with
continuing
rate
of
inventory accumulation respective areas is closing the gap bombing, illlness and-general
gains in income, will encourage
in hardships. During this period the
increases. Business cycles usually between the cost of money
him to increase his expenditures
Europe and in the United States. Russian birth rate declined sharp¬
further if the proper inducements terminate after inventories have
rates -have
declined, ly. In fact, it was cut nearlym half,
undergone an extended period of European
are provided;
domestic rates
/

United States will in¬

crease

number of 18-year-:

By 1965 the

have made about the age

draw from this certain

The
local, state, and
spending
combined
is

rate

produce

army;J"-

Consid¬ agination. It is based

study that
dis¬
tribution of the population bf the

suffering from

olds in the

discus¬

your

annual

in-(

time

shortage of
manpower. So much for history;
What of the "future?
,1
-tH

in "it,pi would

position
submit

by the first quarter of 1960.

idea

until

petition or price resistance ap¬
pears. Then the story changes.

two important areas of the econ¬
omy

matter very much

Gross

not

confined

mobile
industry
where
.sales,
while higher than a year ago, are
lagging behind the experience of
and some of this over 30 years
a
full-blown,
normal
recovery
old and relatively inefficient. The
and, therefore, have considerably
hourly earnings of workers in all
same plant capacity and efficiency
further to go. The second is capi¬
manufacturing
industries
about
situation prevails in many other
tal expenditures where the gain
3%. These figures give a general
industries. Such a condition does
has been small in terms of dollars

been

have

our

of it in the last few years.

efficient.

heavy.

States in contrast has

The United
~been

sion of the current business cycle

Federal

progress

dustry
and
at the
same
maintain a large standing

comments thus far

and

1946,

the

eration the results of 'a

much estimated to increase about $5
There¬
capital expenditures up- approxifore we can say that about onebillion between these periods with
third of the country's present steel
mately the same amount. We look
capacity .averages less than 10 for the automobile
industry to
years
old and is modern and
since

installed

been

Whereas

first quarter of 1960 we expect it
to be in the area of 153-155.
The

should

country;

Federal Reserve

first

this

people reached the age of 13.
United
States,
whereas

000

down

dex of Production averaged
the

the
be¬

example, in 1958 only 2,300,-'

For

rates has been

interest rates.*

when

children

years

thirties

the

business, both domestic¬
in the free world, so
we experiencing; an
up¬

cycle

ten

Russian

falling in America because
contrasting low birth rate

was

of the

As you know, my compjahy, in
going to be so rash
in precise figures addition to ''functioning as'invest¬
We
already have over-capacity. the
ment
likely extent of the cycle but
counselors, is retained by
No
one
can
provide a precise, I would like to
give a few pro¬ many
business
corporations
to
definite answer to this question.
jections of what we think is in guide them in their forward plan¬
In terms of absolute capacity per¬
store for
us
looking 12 months ning. tjur advice to them^lS' thisrb
close of World War II the up¬
haps there are ample facilities ahead. I am doing this to bring If
ward phase of a business cycle
you anticipate b o't y o w i n g
for producing all the goods we
the picture more clearly in per¬ money the rates that wilF prevail
has
lasted from
three
to
four;
need but this varies from industry
spective and not just in terms of this summer are likely to'be as
years. The current cycle is now a
to
industry, and the calculation
vague
generalities. Such projec¬ low as you will see them for the
year old and probably will con¬
does not
take into account the
tions are estimates of course, ahd remainder of this business' Cycle.
tinue for another two years, give
efficiency and age of the plants, as such
or take six months either way.
they cannot all be ex¬
which in the last analysis is the
Contrasts Russia's Population
pected to work out with exacti¬
crucial test. Take as an example
Two-Thirds of Recovery
Spread
■■ ?
tude.
.'*'?£

Why build more plants?

comment:

last

the

coming 18 years of age was rising

from

restored,
and we now have a
cycle in money rates thatus not
exclusively a domestic affair. Just
as we are experiencing an=upward
cycle in

18 years of age in the
All through the period

pat¬
of the flow of capital with its

effect upon money

become

number

international

orthodox

children

late 1940s.

foreign

investment

toward
securities

same.The

the

about

run

industry in foreign
the popular trend

by American

Thursday, June 4, 1959

resulting from the high birth rate
in Russia during the 1930s started,

recovery

phase of their own cycles and as
this
progresses
interest
rates
abroad will be rising again. At the
same
time continuing investment

also

When

free

the

world are now also

cycle within
the framework of the longer term

cycle? About one-third through it.

Much?

Too

usually

regardless of temporary variations
we
are
experiencing
an
oldi'ashioned

trends
started

once

economies

The

Years

have at least three strong

the

during the
because

gap

off

our

will

money

summer
a

steel

months, either
strike

the

working down of steel inventories.

But, anticipating as we .do, a
resumption in the cyclical rise in
American business this fall, and
the coming greater demand
for
money to finance capital and in¬
ventory investments pressure
again will be put on the domestic
money

market.

ing the war and in the immediate
postwar years it- rebounded
strongly and attained the rate that
prevailed prior to the depression
or about 50% higher than in Rus¬
sia.

Why

Scientists

U.S.S.R.

In recent years the contrasts

tween

the

birth

plethora of man¬

of the right age for military
and
for
industrial
and '

power

service

scientific development. This situ-*
is

ation

now

shortage

substitutes have to be
take the

manpower

The '.substitutes

found.

form

there

When

changing.

electric

energy,5machin¬

improved technology and i

ery,

science to serve both

civilian andO

Russia : will feel P.
strong pressure to push as hard
as possible in these directions.;
needs.;

military

J
-•

Steps

Science Output

■

History reveals that population
have

trends

influence

profound
diplo¬

international

such

way

every

exerted

The situation-within Russia
that she will strive in

macy.

compensate

the military front
for .the coming

shortage in manpower by expand-- ♦;

ing

her

efforts in the fields of
developments. The

scientific

temptation
land

conflict

large-scale
becomes

less

<
»

armed
entic¬

ing. On the civilian side she will
be forced by her shortage of man¬
power

to increase her productive

efficiency through capital expen¬
ditures.

Already

it-

indicated

capital expenditures in Rus¬
sia are a much higher percentage
of Gross
National Product than
that

...

Russia has had

rate

the

be¬
two

countries has disappeared and has

in the
sures

with

United States. These

will
the

continue hand in hand

change

in the

age

„

}

pres-.T
mix

Volume

189

Number
>

of the

5852
•

The Commercial and Financial Chronicle

•

population. Therefore it is

doubtful

that

Russia

Continued

jrom

fulfill

can

page

capacity for the week beginning June 1, equivalent to 2,674,000
tons of ingot and steel castings (based on
average weekly pro¬
duction for 1947-49) as compared with an actual rate of *165.0%
of capacity and 2,650,000 tons a week
ago.

the

objectives of its Seven-Year
Plan,' certainly not on the con¬

The State oi Trade and

side of the economy and
at the same time expand or main¬
tain a large standing army.

sumer

•The

situation

States in the

the

will be
of in¬

Week Ended May 30—
New York

moving in the direction
creasing our manpower supply.
This provides us with

Chicago

the oppor¬

Philadelphia

tunity to exceed Russia's military

Boston

Actual output for the week
to 93.6%

Our compara¬

Estimated

percentage for this week's fore¬

cast is 94.4%.

1958

$8,982,631,894
953,906,438
808,000,000

$12,478,426,274
1,251,897,471
1,165,000,000
746,522,229

beginning May 25, 1959, was equal
1, 1959 annual capacity of

of the utilization of the Jan.

147,633,670 net tons.

centers follows:

1959

____

Industry

week in 1958.

same

tive summary for the
principal money

United

years

coming

against $22,072,333,741 for the

(2547)

•

+38.9
+31.2
+44.2
+38.3

539,780,330

month

production)
ago

the

ago

operating rate

*162.1%

was

and

(based on 1947-49 weeklyproduction 2,604,000 tons. A year

the actual weekly production was placed at 1,685,000 tons, or
*:

*104.9%.

■

efforts. On the civilian side of the

Sees Hope of Avoiding

economy, however, it means that
America will be under great pres¬
sure
from Russia. To meet this

"statesmanlike"

competition

Although the

we must develop our
expenditures on a more
adequate scale. Not only must our
competitive
relationship - with

must

in mind.

keep Russia clearly
-

•

steel strike.

Steel Strike
strike

steel

by steel labor to avoid

move

according

"The

June

walkout

Iron

Age,"

30,

not

can

national

impor7
bearing on our defense cycle.
Tn the three business cycles since
.the war. economic troubles have
an

(583,449).

be stacked against his efforts

get. the

kind

contract

new

wants.

Whether

upset the usual labor pattern by agreeing to a
next year
(an election year) remains to be

been

will

wage freeze until
seen.' But

it's

labor.

'States

the

years

There is urgent need for a
-new
pattern of stability on the
-defense side of the economy. We

-now

aware

believe

reason

administration

Washington
this. Therefore,

consider these

'we

matters

."He is well

tion

the

present

that, lie

would-be

at the

but also

strong probability that
cycle terminates it will
complicated this time as it
has in the past by a sharp contraction in military expenditures.
a

""If

year.

and

between

race

America

the.

-capital 'expenditures.
rises to this
-in

the cold

years

than

challenge
war

has

coming

The

decision

and

those

ways

politicians

who

favor

PORTLAND,

Company, 465

(Special to The Financial Chronicle)

Sharaf is

now

MeDonald

Fed¬

eral Street.

With

Goodbody & Co.

BOSTON, Mass.
Watral

Goodbody
'

Street.

Robert

—

affiliated

now

Co.,

140

with

Federal

;

agrees

this

year,

Non-Optimistic View
well

62.6

half

are

Steel Peace

their way

production will be

million

tons

the

year

record 64 million ingot tons,

corresponding

period

1956,

the

Operations will decline this month, but output probably won't
than 10.9 million tons. May's production (more than 11,646,000 tons) topped the 11,567,745 tons poured in March.
Steelmaking operations may go into a tailspin if negotiations
labor contract between the steel

a new

strikes will multiply. Steel makers
furnaces by June 15 to prepare for a

Nothing but

have

start

banking

July 1 walkout.

is indicated by June 30, the
signal the start of the sixth general
walkout staged since World War II. The magazine said the past
five Strikes have lasted a total of 162.5 calendar days, with lost
deadline

bitter

will

Unauthorized

soon.

which

deadlock

may

million; 1956 strike, $250 million. Not so easily measured are the
inflationary costs which have accompanied the wage raises and

Hay den, Stone Adds
-

;
*

of finished

steei

million

the

BOSTON, Mass.
Swan is
&

now

—

William C.

with Hayden, Stone

Co., 10 Post Office Square,

With C. C.

PHILADELPHIA, Pa.
'

11 i

—

nounce

.'is

now

that Thomas C. Borthwick
with them

registered representative.

With Henry F. Swift
(Special to The Financial Chronicle)

„
*

SAN-FRANCISCO,
Calif.—
James R. Hunt is now connected
with Henry F. Swift. & Co., 490
California Street, members of the
Pacific Coast Stock Exchange.

million

the

second).

Assuming

16.5 million

......

Steel mills last week

pacity,
has

rate that

fallen

because

short

of furnace

were

There was no activity on Memorial
Day, May 30.
Along with the week's dip in car making, "Ward's'* said truck
output will slip to 24,829 units, 9% lower than preceding week

(27,301) and the smallest total in 11 weeks.
Memorial Day week last year was 15,038.
"It's Time to Take Another

would

yield 2,675,000 ingot tons. Production
expectations in every week since April 20

breakdowns, wildcat strikes, slowdowns, and

hot weather absenteeism.
"Steel's"
rose

price composite

No.

34 cents to

$33.67 a gross ton
buying continues slow.
*

on
.

heavy

steelmaking
broker-dealer trading.

scrap

Mill

Prices of imported steel are up, the magazine said.
Since
February, they have gone up $10 to $12 a ton. In the first two
months of the year, imported steel products
outweighed exports
by 43% (470,138 tons vs. 328,961).
/

■

American

Iron

and

Steel

Institute

announced

the

operating rate of the steel companies will average *166.5% of steel

Look," Says "Ward's"

its

industry, which probes
deeply into the annals of the automobile industry in which it is
regarded as an authority.
To

quote from the preface:

"Perhaps it's time for the titans of industry to take another
look at -the original parts supplier and invite him
again to be 3
more
vital part of the great and talented team that made
the
automobile industry what it is today."
•
"Where there were once
thousands there are now
only
hundreds of major suppliers who provide a
dwindling portion of
the vast array of parts and components required

vehicles,"

says
as

by the modern
"The shrinkage in numbers
plants become more and more

the 254-page fact book.

the

motor

vehicle

integrated and as they supply the bulk of their major parts
quirements out of their own plants or subsidiaries."

re¬

Electric Output 14.4% Above 1958 Week

The amount of electric energy distributed

by the electric light
and power industry for the week ended
Saturday, May 30, was
estimated at 12,761,000,000 kwh., according to the Edison
Electric
Institute.

For the week ended

May 30, output decreased by 170 million
kwh., below that of the previous week but showed a gain of 1,606,000,000 kwh. or 14.4% above that of the comparable 1958 week.

Car

Loadings 20.2% Above Corresponding 1958 Week

Loadings of
taled

685,745

revenue

freight for the week ended May 23, to¬

the

Association of American Railroads an¬
increase of 115,320 cars or 20.2% above the
corresponding week in 1958, but a decrease of 37,158 cars, or 5.1%
below the corresponding week in 1957.
nounced.

This

cars,
was

Loadings in

the week

May 23,

were

8,635

cars,

or*

1.2%

below the preceding week.

Lumber Shipments 5.5% Above Production
For May 23 Week
Lumber

shipments of 487 mills reported to the National Lum¬
were 5.5%
above production for the week
ended May 23. In the same week new orders of these mills were
3.9% above production. Unfilled orders of reporting mills amounted
ber

Trade

46%

Barometer

of stocks.

For reporting

softwood mills, unfilled orders
days' production at the current rate, and
equivalent to 43 days' production.
For the year-to-date, shipments of
reporting idential mills
were 3.0%
above production; new orders were 5.5% above pro¬

equivalent to 22

gross

stocks

were

duction.

Compared with the previous week ended May 16, production
mills was 0.2% above; shipments were 6.3% below.
latest week, as against the
corresponding week in 1958,
production of reporting mills was 0.2% above; shipments were
6.3% above; and new orders were 3.6% below.
of reporting

For the

Business Failures Up
Commercial

and

industrial

failures

Slightly
edged

264

in the

ended

Dun 8i

that

during

"Ward's Automotive Reports," has just issued the 21st
edition
annual study of the automobile

week

Steel Output Based on 94.4% of Capacity
The

Production

1959 Automotive Yearbook

were

scheduled to operate at 94.5% of ca¬

building

car

said.

(vs. 18.6

inventory reduction

associated

20.4

third quarter

strike and production of 23 million ingot
tons, about
tons of;, finished steel will be shipped.
Net

leum industries.

g s and
Company, Inc.,
Fidelity-Philadelphia Trust Build¬
ing, members of the Philadelphia- '
Baltimore
Stock
Exchange, an¬
o

first,

in the

will be about 3 million tons. Big users this summer will be the
automotive, appliance, construction, canning, railroad, and petro¬

Collings

;
:

will be consumed

publication estimated the week's

Bend; Mercury in Metuchen, N. J.; Cadillac
Detroit; Chevrolet in Los Angeles, Oakland, Calif.; and Tarrytown, N. Y.; and Buick-Oldsmobile-Pontiac in South gate, Calif.,
Atlanta, Ga., Arlington, Texas, and Kansas City, Kan.
Other plants around the industry worked five
days, "Ward's"

have driven up the price of both industrial and consumer
goods.
Strike or not, "Steel" reported that about 19.5 million tons

(Special to The Financial Chronicle)

Studebaker in South

industry and the United

turn for the better

continues

production estimated at 45,834,000 net tons.
j-Industry, labor, and the economy have suffered. Estimated
cost to the industry has been $1.4 billion in lost output. In settling
the 1956 strike, steelmakers traded 10 million ingot tons of produc¬
tion for three years without general strikes.
Labor has had to
work for years at inflated wages to recover the $850 million in
wages it lost.
Estimated wage loss in the 1952 strike was $300

(Special to The Financial Chronicle)
_

ques¬

Just what

46%

according to "Ward's." They were
Dodge Main and Imeprial in Detroit, and Chevrolet's Baltimore,
St. Louis and Bloomfield, N. J., facilities.
Down the following
day in addition to foregoing plants, were Chrysler in Detroit;

of."

strike

Frederic S.
with A. C. Allyn &
—

Incorporated,. 30

Company,

freeze.

wage

public and the

to the biggest half
history, "Steel". magazine reported June 1.

for

• V

Joins A. C. Allyn Co. a :

the

The old pros in the labor hierarchy probably
kindly to 'statesmanship' because of the effect

Steelworkers don't take

BOSTON, Mass.

for

But there is

with

be less

Congress Street.

still

love him in June and be

can

hero

metalworking weekly said.

Stone has been added to the staff
of Maine Securities

men

—

fully

units, a 12% decline from previous week (133,470), but
76% higher than Memorial Day week, 1958 (66,574).
Five plants closed May 28,

do—

delivery promises. The situation seems to be
in the Midwest. Still, no one is being hurt because of late

First

Maine—Henry

stood

increase

Steelmakers

(Special to The Financial Chronicle)
-

repair problems and mill breakdowns are creating
a damper on output. Because of this, actual
production at several big mills has fallen short of forecasts.

to encourage the expansion

Maine Sees. Adds

what

Furnace

vs.
-

Mr.

certain

they will rise to the challenge.,

soon

headaches and putting

of American business. We believe

mind

automobiles,
2,242,348.

at 117,470

deliveries.

in the hands of American business
-

The statistical

commented

to a wage freeze or to an incon¬
he will exact a price for it next
This is something that steel users and sfceel produces can

worst

position

the

negotiations in other industries."
time, "Iron Age" pointed to still another angle

same

fallen behind

comfortable

been.

field

our

over

should be

Russia

America

+•■

labor game,"

3,275,000

However, factory closedowns for the Memorial Day week end,
S. plants, plunged passenger
car production in the week
ended May 30 to its lowest level in
15 weeks, "Ward's" said.
{.<•

Meanwhile, the strength of steel demand has generated both
cheer and problems for the mills. In some areas, producers have

real

the

sequential

not be

The

his

national

in the steel labor crisis:

when the

;:;+.

approximately

which began on May 28 at some U.

contract

%„■

than 1958's January-June effort of

AFL-CIO headquarters in Washington would be

would not take too

it would have

another question.

re-

business

-cycle, we believe that there is not
only added certainty of a sharp
-step-up in capital expenditures
-

makes

that his

aware

would

White House

lation

■

infant at the

ready, to throw him overboard in January.

the

that

"When

assuming he can't crack the solid steel management front
will "be. doing it with his eyes wide open.

ity.

have

Age."

."Iron

ahead can¬
not afford to repeat this volatil¬

'■

"«.+'■

^"Mr^ McDonald is

the

count

seriously complicated in this
possibiilty."
; ">;■
•.
."country by sharp declines in de¬
'+.
fense exp end itu r es". Defense
'r"Iron Age" said that before Mr. McDonald could seriously
consider this he would have to be certain of support
.'orders have been employed as an
among his
own
rank-and-file as well as the high command of organized
-instrument of economic
control.
These ups and downs in defense
?have been violent. The"; United

Output

falter

not

from

Cir

emphasized that the very; strong assembly pace
in June, when more than
550,000 cars, will roll
nation's plants. It also will be the best June total in
four years, "Ward's" added,
paving the way for a first-half 1959
will

"So far, all the cards appear to

Letup Seen in Large

"Ward's"

weekly production

average

Despite the Memorial Day holiday, passenger car production
in May will reach 545,000
units, according to "Ward's Automotive
Reports," best voume for the month since record year 1955
(724,892) and third best May figure in history behind 1950

no sign of 'give' by either side.
Still,
the part of David J. McDonald, steel labor chief,

should not be completely ruled out.

There has been

'statesmanship'

These matters have

tant

favor

"Oh the basis of what has happened so
far, all signs point to

Western Europe be reckoned with
we

still

entirely discounted,
metalworking weekly.
Sard "Iron Age";

capital

but

odds

•"Index of production is based
for 1947-1949.

May 28 from 259 in the preceding week, reported
Bradstreet, Inc. Although casualties remained moderately
>

Continued

page

The Commercial and

(2543)

Continued from page

below the

276

in the comparable week
were

last

they exceeded

year,

bilities of $5,000 or more,

Bank

week earlier.

While

•"

the toll among retailers remained

same

to 27 from 26.

The only decline during

and

service

event

the week

appear in con¬
More manufacturing

three out of 10 profes¬
people — doctors, lawyers,
etc.—now have any
kind of a planned individual old
age retirement program, according

accountants,

Five

geographic regions accounted for the week-to-week
Failures in the Pacific States rose noticeably to 69 from
55, while milder increases prevailed in the South Atlantic, East
South Centtral, West North Central, and Mountain States.
In
contrast, the Middle Atlantic total dipped to 87 from 89, the East
North Central to 43 from 46, the West South Central to 8 from 11,
and New England casualties dropped to 9 from 22.
Business
mortality exceeded 1.958 levels in five regions, including the
Pacific States, but remained below last year in four regions.

issue of
S5,000,000 public improvement bonds of San Juan, capital of
Puerto Rico, at the New York office of the Government Develop¬

The most marked declines from

dc Ponce.

year ago were

reported in the

to
Four

Successful bidder

was a group

New

ment

Bank,

John

and

Milhau,

Vice-President of the

Interest in oats weakened and prices were down
fractionally.
was an appreciable dip in soybeans
prices and volume in
both oil and meal was lower.
Wholesalers reported a slight de¬
in rye trading, which resulted in a slight
dip in prices.
Despite lower prices on flour, trading was sluggish, except for
sizable purchases by the government for relief distribution abroad

crease

Flour exporters

expect to sell appreciable quantities

Ceylon this week.
Although export buying slackened during the week, sales of
domestic use expanded somewhat and
supplies were re¬
duced.
This helped hold prices at the levels of the
prior week.

rice for

While the buying of sugar eased this week, prices advanced
Sugar deliveries in the week ended May 23 were

some¬

what.

from the prior

week, but they

were

well ahead of those of

down
a

year

ago.
was

moderate

decline

coffee

trading, but prices
steady.
Cocoa prices were down fractionally and volume
slightly below the prior week.
Although hog receipts in Chicago fell somewhat, turnover ex¬
panded and prices were moderately higher.
Cattle receipts re¬
mained close to the prior week, but
trading lagged and prices de¬
clined somewhat.
There was a slight dip in lamb prices as
pur¬
chases declined and receipts were low.
The possibility of tight
supplies later in the season helped
cotton trading remain at the level of the
prior week and prices
were steady on the New York Cotton
Exchange. Exports of United

Continued

Summer-like

buying of

weather

many

areas

stimulated

consumer

summer

this week

apparel, air conditioners, and outdoor furniture
boosting over-all retail trade appreciably over a year

These gains offset slight
year-to-year declines in some
appliances, linens, and draperies. Volume in new
passenger cars
remained at the high level of the
prior week and sharp increases

ago.

OVerlast

year

were

sustained, according

scattered

reports.

+? t0tal„ dollar vo?ume of retail trade in the week

ended
May 27 was 4 to 8% higher than a
year ago, according to spot
estimates by Dun &
Bradstreet, Inc. Regional estimates varied
from the comparable, 1958 levels
by the following percentages:
Mountain +8 to +12; West South
Central +7 to +11; Middle

L*/r

+1J)'^ast South Central +4 to

Central, South Atlantic, and Pacific

There
women s

and

was

upsurge

cotton dresses and

lingeiie

occurred

from WH
both

rose

during

the

+8; New England,

week

Coast
in

+2 to +6;
purchases of

sportswear, and interest in

noticeably.

Moderate increases

over

the year ago

and last year.

For

store.Jales

the*

Up 10%

May 23 Week

10%

fn wfnv

Sales

on a country-wide basis as taken from
IndCX f°r the week ended May 23>

inrrJadu 10^ KVe
^asfcI
a!?ove *he llke period
S ended May' 23, mcre.ase of 0%
n?
weeks I A
a gain of

last year. In the preceding
was recorded. For the four
registered.

was

^fderal Reserve System department store
Serelse^ron^ that nf
ri?e we?k e,nded May 23 showed a 10%
SSl °o
ho e penod last year* In the preceding
rtiJ? to the ?? ^r^ay and April 25 no reports were avail£ble due
United
Knlnc

accessories

"|ens clothing, especially tropical suits, sports shirts,
S
v chlldrJei} s
merchandise was up noticeably
a week earlier

Nationwide Department Store

from

page

The Big
ters at

welcomed the

Squeeze

Parcel Delivery Service strike.

little Steel

$20 present time
price just that!

delivered price from

to $40 per ton less than the
of the American product.

In
industry
after
industry
throughout the country, more

products are arriving from over¬
seas.
They are not confined only
to raw steel.
The mounting list

visiting bankers and
look' upon

can

price tag"—certainly not because
they are superior in quality. Our
American workmen can produce
equal

best

the

nuisance

New York have studied this sub¬

ject for
see

Foreign-made goods are pur¬
chased because they carry a "lower

goods

opportunity. We at The Bank of

to be doing

we seem

Bill

son

the

ing

our

over

two

fine

for extend¬

service and opening ave¬

for desirable

nues

and now

years

means

business."

new

Survey's Details
The

sessions, presided over by.
C. M. Bliss, Executive Vice-Presi¬
dent of The Bank of New York,

Therefore,
such steel consuming world—if not better.
products as automobiles, sewing if we are to retain the markets we
provided further details on the
now
enjoy and recapture those we
machines, typewriters, heavy ma¬
survey of professional people:
chinery, electrical apparatus and have lost—we must find a solution
Seven out of 10
are
self-em¬
to the problems now facing the
many others. Whatever you make,
American steel industry. This calls ployed; one out of 10 is an em¬
your turn may be next!
for a united effort on behalf of ployee; two out of
10 are both
American Jobs
all forces involved in production. employed and self-employed.
includes

would like

now

Our

to reiterate:

being manufactured overseas
modern equipment.
In fact,

much

Helps Summey Merchandise Sales

the

over

legislation like the Keogh-Simp-

Warm Weather

Bank

all

told them that "One

was

This compared with 50,000 a week earlier and
105,000 a year ago.
The total for the season through last
Tuesday came to about 2,352,000 bales, compared with
4,729,000 in the similar period last year.

The

from

Albert C. Simmonds, Jr., Chair¬
of The Bank of New York,

were

States cotton for the week ended last
Tuesday were estimated at
58,000 bales by the New York Cotton Exchange Service Bureau.

banks

York

man

Many foreign steel products are
There

recent

the general

There

York

fessional people made recently by
the bank.

Chase

Manhattan Bank.

New

United States on the subject of
pension plans for the self-em¬
ployed, a spokesman detailed the
findings of a survey of 30,000 pro¬

Luis Munoz Rivera, Director of the

right:

a full-day seminar held for
represenatives of 101 corre¬

spondent

headed by the Chase Manhattan

Dr.

Ponce;

Reflecting higher prices on sugar, hogs, hides, and steel scrap,
commodity price level rose moderately this week. On
June 1 the Daily Wholesale Commodity Price
Index, compiled by
Dun & Bradstreet, Inc., stood at 276.49, up from the 275.87 of a
week earlier, but below the 280.75 of the similar date a
year ago.
Influenced by larger offerings and light
buying, most grain
prices declined during the week. Improved flour business helped
wheat prices rise in Chicago, but they were down in other markets
where supplies increased and domestic and export buying
lagged.
Although purchases of corn rose somewhat, supplies were heavy
and prices fell somewhat from the prior week.

At
128

San Juan; Roberto de Jesus Toro, President, Banco dc
Rafael Pico, President of the Government Develop¬

Budget,

Commodity Price Index
Moves Moderately Higher

affenti:;.:v;

Bank

survey.

Bank, the Morgan Guaranty Trust Company and including Banco
Shown here, left to

Wholesale

submitted bids June 2 for an

banking groups

ment Bank for Puerto Rico, fiscal

New England and West South Central States.

home.

the

sional

upturn.

and

dollars

Only

than last year; other industry
had fewer failures than in the corresponding

trade groups
week of 1958.

survey

proposed legislation to that
: effect is passed.
++ )

•

businesses succumbed

and

deferred

tax

use

last week, and among wholesalers held steady at 21, manufacturing
casualties climbed to 55 from 44 and commercial service edged
struction where failures fell to 29 from 36.

York

New

professionals reveals only three
out of ten provide for old-age
/retirement. Nineteen out twenty
surveyed say they would institute,
a
savings plan if permitted to

•

at 132, the

30,000 doctors, lawyers and other

failures involving liwhich increased to 232 from 227 in the
among

previous week but difl not reach the 250 of this size a year ago.
Small casualties, those with liabilities under $5,000, held even at
32 and were slightly above the 23 in the similar week of 1958.
Concerns failing with liabilities in excess of $100,000 rose to 27
from 19

Thursday, June 4, 1959

People Have Planned
Retirement Program

Industry

6% above the prewar level of 249 in 1939.

of the week's rise occurred

All

Few Professional

Awarded Puerto Rico Bonds

The State of Trade and
the 225 in 1957 and

Financial Chronicle

been

has

provided

responsibility is to help curb
Ameri¬

inflation and thus protect
can

jobs.

Nineteen

ment

Summary

they

said

expect to set
deferred

tax

use

out

retire¬
savings plan, if permitted to

would

under

dollars

Remember this,

curbing inflation new legislation.
leading American machinery and keeping American production
On the question of whether pro¬
builders. Expanding foreign pro¬
competitive is not a problem for fessional people would like their
duction
and
improved product steel management alone. It is also
program set up with a bank trus¬
quality has undoubtedly been in¬ labor's problem and the public's
tee or with a life insurance com¬
fluenced by the technical knowproblem! If our costs keep rising
pany, the response showed: 63%
how freely given to foreign pro¬ we will be faced with
unemploy¬ chose a
bank; 12% chose a life
ductivity teams, who have visited ment, a loss of business, and such
insurance company; 3% said both;
steel plants in this country.
a drastic decline in profits that the
and 22% made no choice.
Many are now asking—have we economic health and stability, of
The average amount that would
reached the turning point — are our industry will be threatened.
be put into such savings was set
the economies of foreign countries
This is a year of decision! If we
at $2,500 per year.
being strengthened at the expense can keep costs in line now, and for
As to the investment of these
of our own? This is an interesting the next two or three

and

years,

question and must1 be given
sideration
this

con¬

appraise the impact
development will have on our

standard of living.
Our

standard

present

much

of living is
at
higher than any

other in the world.

It is

our

in¬

are

able to

depreciation

get the proper

funds

modernize

funds,

but on
our
plants, we can better meet
the whole the professional people
competition and solve the prob¬
lems
now
facing the American indicated they favored a gener¬
steel industry, as we have in the ally conservative investment port¬
wanted all common stocks;

folio.

past.

tention to keep it this way.

In the
development of this standard the
steel industry has made a substan¬
tial contribution, and we are very
proud of it.
Our national economy is built
on pillars of steel. Through a large
investment of capital the steel in¬

dustry
half

has

well

created

million jobs which

American

$3.60

benefits.

workers

hour,
For

of the

pay

average

including

each

over

now

nine

total accounts for

third

all

factory

in the United States.
preserve

than

one-

are

has

been

secure.

Colo.—Roland Aplin

added

enteenth

Service

Investment

the

staff

Co., 818 Sev¬

Street.

Unfortunately, at the

the U.

Since

then

several

bills

the

City,

York

New

Broadway*

York

and

Exchanges,

will

New

Stock

admit David G.

nership.

Baird, Jr. to part¬
•

House and

studied by the Sen¬
Committee. • It appears
doubtful that the legislation will

pass

the
or a

successor

law at the 1960

bill, becoming

session

are reason¬

ably good, it was indicated at
seminar.^

Senate during this ses¬

sion, but prospects for the meas¬
ure,

American

the

ate Finance

On June 4th Baird & Company,

members

subject have been introduced, and
the current Keogh-Simpson Bill
is now being

Baird to Admit
65

Congress

1951.

has been passed in the

for the American

main

introduced

(Special to The Financial Chronicle)

DENVER,

and strengthen these jobs

people, it is im¬
perative for us to face foreign
competition with improved equip¬
ment and lew operating costs. We
cannot afford to price ourselves
out of foreign and domestic mar¬
kets if American jobs are to re¬

the

passed by Great Britain in 1956
and by Canada in 1957 and was

With Inv. Service

employment
If

seminar was

portion of the

legislation on tax deferred savings
(Special to The Financial Chronicle)
for
pension plans for the selfMINNEAPOLIS, Minn.—Court- employed. Pension plans for em¬
land
Y.
White
has
become ployees have had a tax exempt
connected with Bache & Co., Min¬ provision since 1942, but there is
neapolis Grain Exchange Build¬ no such feature available for the
self-employed. However, legisla¬
ing.
tion remedying this inequity was

directly employed in steel
others hold jobs in
plants making steel products. The
mills,

devoted to the background of

With Bache & Co.

fringe
500,000

workers

5% indicated they wanted
stocks; some
10%

common

the

Volume

189

Number 5852

The Commercial and Financial Chronicle

(2549)

The

following statistical tabulations

latest week

Business Activity

week
Latest

AMERICAN

IRON

AND

STEEL

INSTITUTE:

Indicated Steel operations (per cent capacity).
Equivalent to—
Steel ingots and. castings (net tons)

.June 7

§ 2,674,000

'2,650,000

Revenue

CIVIL

6,256,485

7,684,000

7,705,000

7,331,000

West

26,821.000

27,389,000

25,679,000

1,824,000

1,802,000

1,714,000

12,114,000

12,335,000

11,543,000

6,614,000

6,240,000

6,401,000

6,607,000

203,G10,000

206,616,000
22,513,000

211,747,000

195,753,000

20,639,000

20,709,000

7,177,525

•NEWS-RECORD:.
■

Bituminous

23,212,000
.93,802,000

METAL

'[}■

AVER AGE

Lead
: Lead

•

(St.

502,6*73

Construction number

.9679,700.000

$468,200,000

$410,900,000

$423,990,000

335,600,000

304,200,000

204,400,000

155,564,000

344,100,000

164,000,000

206,500,000

268,426,000

165,500,000

145.900.000

149.400,000

178,108,000

178,600,000

18,100,001

57,100,000

90,318,000

8,355,000

'8,255,000

8.095,000

7,270,000

320,000

324,000

358,000

395,000

140

137

141

128

(E.

May 30

AND

INDUSTRIAL)

—

DUN

264

12,931,000

12.546,000

11,155,000

Louis)

259

275

278

6.196c

6.196c,

6,196c

5,967c

$66.41

§66.41

$66.49

—May 20

§35.83

§34.17

$33.83

$35.33

QUOTATIONS):
31.125c

SEED

Received
Stocks
Cake and

Produced

24.700c

24.000c

May 27

103.500c

103.250c

102.375c

94.500c

June 2

83.62

83.73

84.10

96.00

86.38

86.78 »■;

88.27

96.23

90.06

91.34

102.96

88.67

90.34

99;3G
95.77

83.28

87.72

87.45

91.62

June 2
June 2

85.33

35.59

87.45

97.94

88.40

88.67

89.92

99.36

—

86.11

Shipped

June 2

April:
All

All

June 2

4.44

4.41

4.32

3.57

All

.June 2

4.54

4.51

.June 2

4.70

4.68

June 2

Baa

5.02

5.01

4.39

;

3.79

,4.52
4.92

4.58

Durable

Nondurable

4.53

4.51

4.42

3.79

383.4

369.2

402.0

(tons) at end of period

—

297,960

232,974

311,340

242,408

May 23
May 23
May 23

317,985

322,778

304,464

259,071

468,806

485,085

455,533

ACCOUNT

333,870

110.43

110.84

109.82

MEM¬

:<t

3,031,490
474,190

2,546,041

May

sales

3,020,231

May

2,677,230
459,070
2,180,500

2,396,420

1,711,330

393,710

389,200

2,037,930

1,269,700

2,639,570

2,431,640

.May

121

12,130,000

'12,114,000
'6,934,000
'5,180,000

11,310,000
6,337,000

'165.1

139.G

98.1

*97.9

91.4

15,991,000
9,285,000

'15,961,000
*9,210,000

6,706,000

'6,751,000

15,104,000
8,564,000
6,540,000

4,973,000

Avge.^=100)—

Average=:100)—

—

goods

BENEFIT
—

PAYMENTS

INSTITUTE

Death

benefits

LIFE

Disability payments
Annuity payments
values

Surrender

Total

LIFE

Ordinary

468,400

427,870
45,100

523,430
14,200

466,310

87,900

400,250

341,930

492,340

568,083

445,350

,356,130

532,740

Savings

835,594

709,890

666,260

549,980

Banks

40,400

—

PURCHASES

INSURANCE

—

137,500,000

111,500,000

126,600,000
131,100,000

$595,300,000

$641,500,000

$4,477

$4,053

INSTITUTE

Month

April
-

AREAS

FINANCING

—

BOARD—Month

and

130,590

104,640

63,350

195,630

Mutual

S62.515

637,206

685,850

Individuals
Miscellaneous lending institutions

May

994,215

967,155

700,556

881,480

4,335,484

3,814,990

2,727,620

692,680

608,810

3,386,110
471,260

.May

3,889,849

3,443,265

3,017,066

2,447,890

May

4,582,529

4,052,075

3,448,326

3,073,120

$637,584
100,707

106,297

savings bunks

120,843

426,340

companies

863,625

$870,081

544

BANK

loan

trust

$5,568

omitted):

associations
companies

and

971

$5,788

NONFARM

LOAN

(000's

715

$864,881

HOME

Feb.

596

702

$5,594

ESTATE

REAL

539

——

May

.May
.May

sales

9,700,000

50,200,000

$4,353

—

.May

61,200,000

54,700,000
117,500,000

137,200,000

Insurance

—

$262,700,000

9,800,000

$674,000,000

—-

——

.May

sales

54,900,000

52,900,000

—

__——,——J.

Group

May

purchases

$246,900,000

10,000,000

—...

Industrial

480,183

58,400,000

—

——

INSURANCE

May

$278,000,000

—

Matured endowments

May

•

transactions initiated off the floor-

Total

114

123

16G.5

(1947-49

goods

INSURANCE

Total

sales

-Short

11G

112

FED¬

1,658,900

the floor-

purchases

••Other sales

114

116

126

69,358

(000,000's omitted):

May

'Total

118

5,140,000

POLICYHOLDERS

-May

Other
■l

LIFE

Other sales

•

66,645

6,990,000

Policy dividends
110.30

May 29

100

sales

Total

SECOND

manufacturing

4.30
3.88

May 23

—

activity

Other sales

160,800

108,400

i?r

INSURANCE—Month of March:

purchases

Gliort

All

4.60
4.60

389.2

'•

number of employees in manufacturing industries—

4.71

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—

Total

366,270

145,400

■

manufacturing

4.74

June 2

•

SALES

indexes

4.75

OIL,-PAINT AND DRUG REPORTER PRICE INDEX—

•

55,265

286,900
138,300

•

indexes

4.76

June 2

INDEX

-Orders received (tons)
Production (tons)

60,739

111,900

Estimated

4.02

NATIONAL PAPERBOARD ASSOCIATION:

•

131,038

110,300

249,800

manufacturing

June 2

Group—
Industrials Group

110,600

AND

June 2

—

Utilities

Total

74,516
745,014

Api-il

453,677

113,032

123,169

304,411
86,922

300,641

252,673

283,912
450,176

484,084

318,355

$2,244,638

$2,352,495

$1,700,652

-Total-«ound-lot transactions for account of members—
Total

purchases

Short

sales

Other sales

Total

sales

——

—

•TOUR TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDDEALERS AND SPECIALISTS ON N. Y. STOCK ;
-•(EXCHANGE

SECURITIES

—

by dealers
TJwmber of shares

Odd-Jot
•,

sales

625,230

Odd-Jot purchases by dealers

(customers' sales)total sales

2,278,440

2,197,339
$123,309,784

$94,095,907

1,933,379
14,167

$125,781,158

.May

1,780,220

1,357,465
.$57,441,121

1,836,225

1,666,252

.May

-Customers' other sales

—May

1,919,212

7,203
1,879,022

1,659.982

18,868
1,161,950

May

$104(855,472

$102,481,736

$85,350,334

$48,156,212

May

485,180

4G5,730

461,530

327,950

-collar value

—

6,270

1,180,818

-•Round-lot sales by dealers—
..s

Number of shares—Total sales
■Short

.May

sales

.'-•'Other

sales

—May

Round-lot purchases by dealers—-Number

485,180

465" 730

46L530

327,950

May

774,890

701,140

574,490

301,140

of shares

total round-lot stock sales on the n. t. stock
-exchange — securities exchange commission
tifor account of members

-■

round-lot
ShOrt sales

Total

•Other sales

Shipments

—

May
May
May

9
9

1,173,650
18,311,340

672,960

556,580

953,240

17,650,670

15,990,880

13,952,700

19,484,990

18,323,630

16,547,460

14,905,940

u. s. dept. of

•

119.8

119.3

May 26
———

All commodities other than farm and foods

91.1

90.6

92.1

97.4

May 26

foods

Meats
-

'119.G

107.6

107.7

107.59

113.2

May 26

101.9

102.4

102.8

115.4

May 26

127.8

'128.0

128.0

125.2

figure.

1959, as against Jan. 1, 1958 basis of 140,742,570

370.381

376,372

353,325
325,152

-965,575

742,884

447,911
407,716

931,272

Passenger
Tubes

922,688

(Number of)—

4,316,393

3,764,413

4,093,794

3,685,427

7,364,072

7,066,028

33,634,000

32,265,000

38,569,000

36,000.000

33,750,090

34,515,000

33,378,000

27,707,000

$36,160,073

—-——

——

Tread Rubber

4,435,391

37,665,000

Production

Inventory

4,459,094

7,629,223

Shipments

RYS.

•

Motorcycle, Truck and Bus Inner

$77,599,874
60,987,252

$31,914,880

138,587,126

56,916,874
4,756,799

(Camelback)—

(pounds)

QF U. S. CLASS I

(Interstate Commerce Commission)—

Month of January:
Net railway

operating income

Income

deductions

from

after fixed

charges—

deductions

Net income

—

Depreciation (way & structure & equipment)
Dividend

25,446,728
61,606,801

4,405,196
57,201,605
25,826,000

income

available for fixed charges

Income

Other

—

income

Federal income taxes

'•Includes 845,000 barrels of foreign crude runs. §Based on new annual capacity of 147,633,670 tons
tons
tNum.be.? of orders not reported since introduction of
Monthly Investment Plan.
"Prime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-half cent a pound
^Revised

asot Jan. 1,

1,003,984

3,659,257

•

Total

119.5

1,117,230
1,307,937
3,584,153

1,304,042

—

Inventory

Other income

May 26

products

Processed

1,390,661

—

Shipments

Miscellaneous

Commodity Group—
All commodities

6,568,545

19,786,283

3,680,472

—-

•...

Production
(pounds)
Inventory (pounds)

(shares):

6,620,561

8,962,02G

19,435,050

(Number of)—

—

Production

7,433,778

9,959,002

20,181.357

Inventory
—
—Tractor Implement Tires (Number of)—

Farm

and Bus Tires

SELECTED INCOME ITEMS

wholesale prices, new series
.LABOR — (1947-49 = 100):
.

9,252,580
."
——_——

Shipments

sales—

Total sales

INC.—Month of March:

Passenger Tires (Number of)—

Truck

Customers' short sales

Number of orders—Customers'

RUBBER MANUFACTURERS ASSOCIATION

Inventory

May
May

—

Production

(customers' purchases)—T

Dollar value

Total

Shipments

EXCHANGE COMMISSION

737,823

174,100

manufacturing (production workers)—™

Payroll

Other -transactions initiated on

139,800

86,100

■>

210,100

142,300

91,800

169,000

104,800

■

•**_'

Durable goods
Nondurable goods

3.99

Aaa

166,400
_•

'•

515,520

PAYROLLS—U. S. DEPT.
LABOR—REVISED SERIES—Month of

2.04

Short

—.....

STORE

EMPLOYMENT

4.54

Total

I
_

—

Average-Ioo—Month of April:
Sales (average
monthly), unadjusted
,*
'Sales (average daily), unadjusted
;
^
Sales (average daily), seasonally adjusted™-

4.06

ZZZ

RESERVE
DISTRICT
FEDERAL
RESERVE BANK OF NEW YORK—1917-49

4.65

FOR

11,855
254,651

____

(bales) April 3ft...
Produced (bales) :■ •'
'
Shipped (bales)

4.10

TRANSACTIONS

63,700

467,100
722,800

L,,>

—

Stocks

4.68

ROUND-LOT

46,900

364,100
405,500

PROD

Linters-—

4.12

June 2

SEED

(tons)

Employment

U. 43.-Government Bonds

AVERAGE

13,497,000
$83,977,000

ERAL

May 27

:
i

38.54

JL949

5,304,000

$65,051,000

(tons)..-"--^.^!-,!...:..,..,

DEPARTMENT

82.15

Unfilled orders

11,589,000

7,673,000
23,657,000
9,612,000

9,996,000

(tons)..

April 30—

(tons)

10.500c

85.98

Percentage of

20,348,000

8,623,000

COMMERCE—Month

April 30—

•'■■

■

10.000c

11.300c

36.38

COMMODITY

5,252,000

$71,907,000

COTTON

mills

Hulls—-

11.500c

85.46

MOODY'S

1,458

$29,538,000

22,837,000

•™

(tons)

11.000c

Group

1,263

—

(tons)

Shipped

11.000c

-June 2

Group

Meal—

11.500c

11.300c

AVERAGES:

DAIIiY

AND

11.000c

11.500c

June 2

Railroad

116

$22,558,000

liabilities

(tons)

ll.500c

22.075c

11.500c

June 2

-Public

117

121

139

1,292

(tons)

May 27

28.825c

12.000c

MOODY'S BOND YIELD DAILY AVERAGES:

i " .*

209

Seed-

May 27
at

PRICES

Group

737

185

April:

11.800c

corporate

Industrials

COTTON

11.800c

28.850c

82.03

625

liabilities

12.000c

24.300c

Railroad Group
Public Utilities

Total

29*400c

31.175c

c*'i

126

166

$16,501,000
13,950,000

—

service

May 27

31.150c

88.27

257

132

liabilities

Commercial

Stocks

(primary pig. 99.5# )
York) at

BOND

Construction

May 27

U.-6, Government Bonds

-••Average

210

475' 157

671

I™

Retail liabilities

——-——May 27
May 27

89.C4

MOODY'S

$590,547,983
53,726,893
536,821,090

liabilities

Stocks, (itons)

May 2(5
__May 26

'■< Straits
-tin -(New

Wholesale liabilities

Produced

tZinc •(•delivered) at
Zinc .(East St. Louis)

96,589,327
614,405,217

ZZZZZZ
ZJZZZZZ

Total number

Manufacturers'

Crushed

PRICES:

12,761,000

May 28

5973G4' 904

number

ITCTS—DEPT.

copper—

York)

Aluminum

588,962

146,148,637
$710,994,544

93,135,873

63,484,679
106,310,553
97,929,325
56,622,773
22,589,537
121,366,793

INC.—Month of April:

Cotton

refinery at—
refinery at

(New

Retail number

May 23

(in 000 kwh.)

PRICES

.Export

570,425

RESERVE

100

Domestic
.

.r ;

36,749,757

151,199,036
44,528,905
96,522,747
111,701,397
49,578,040
30,276,024

FAILURES—DUN & BRADSTREET,

INSTITUTE:

(COMMERCIAL

Electrolytic

BUSINESS

ZZZZ

City

647,282
574,828

May 23

STORE SALES INDEX—FEDERAL

COMPOSITE

140,873,106

111

York

Age

$29,108,450

202

City

New

694,380
583,186

May 23

Finished steel (per lb.)
Pig Iron (per gross ton)
'. Scrap eteel (per gross ton)

l-Jj

685,745

May 28

BRADSTREET, INC
IRON AGE

York

Outside

Manufacturing number

May 28

coal and lignite

-Electric output
FAILURES

57,678,039
121,730,252
109',864,261
52,480,793

$708 940 061

United States

60,353,000

Z-ZZZZZZZ'
771™!

—_

84,464,000

May 28

municipal

ELECTRIC

Total

"T""!!!

—,

81,487,000

May 28

(tons)
Pennsylvania anthracite (tons)

EDLSON

Central

Pacific

55,490,000

(U. S. BUREAU OF MINES):

SYSTEM—1947-49

$81,039,758

ZZZZZ
ZZZZZ
ZZZZZ
'

89,639,000
54,629,000

54,484,000

ENGINEERING

DEPARTMENT

$35,648,480
153,915,373

Year
"

Central

Mountain

New

May 28

Federal

Month

Commercial service number

-Public construction

Month

construction™

COAL OUTPUT

CITIES—Month

INC.—215

' V'

Wholesale

Private construction
State and

7,132,225

of that date:]

11,853,000

May 22

are as

Latest

Central

S7,891,000

either for tktj

are

England

27,319,000
1,488.000

RAILROADS:

—

DUN

—

Middle Atlantic

May 22
„

CONSTRUCTION

of quotations,

cases

VALUATION

1,685,000

May 22

Total U. S.

2,G04,000

May 22

AMERICAN

ENGINEERING

Olr /IpA Al

or,

PERMIT

BRADSTREET,

62.4

May 22

(bbls.)

freight loaded (number of cars)——
.May 23
lreight received from connections (no. of cars)—'May 23

Revenue

Ago

92.0

BUILDING

South

7,215,975

ASSOCIATION

Dates shown in first column

that date,

East

May 22*

Stocks «t refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
May 22
Kerosene (bbls.) at
May 22
.? Distillate fuel oil (bbls.)
at
May 22
Residual fuel oil (bbls.) at
May 22

Year

Ago

'93.6

Month

;

(bbls.)

Distillate fuel oil output (bbls.)
•Residual fuel oil output (bbls.)

month ended

production and other figures for tiMi

cover

South Atlantic

(bbls.

•Crude-runs to stills—dally average
Gasoline output
(bbls.)

output

month available.

New

gallons each)

Kerosene

Week

§94.5

June 7

—

AMERICAN PETROLEUM INSTITUTE:
-Crode^cil and condensate output—daily average
42

Week

10,904,981

127,682,145
96,141,650
7,716,409

25,001,994

52,160,075
20,907,870
3,994,820

4,290,571
21,535,429

88,425,241

16,913,050

50,773,747

50,634,888

49,796,956

17,579,658

22,278,634

12,334,194

24,338,440

4,604,183

62,G04,437
681,360

26,996,198
6,443,547

1.82

4.05

1.67

appropriations:

On common stock
On preferred stock
—
Ratiq of income to fixed charges

—

The Commercial and Financial Chronicle

(2550)

Thursday, June 4, 1959

if INDICATES

Now in

Securities

ADDITIONS

SINCE

Registration

•

ITEMS

REVISED

ISSUE

."V:"
Academy Life Insurance Co.
March 31 filed 310,000 shares of common stock (par

American Telemail

cents) to be offered for subscription by common stock¬
holders on the basis of 0.525 shares of additional stock

of record April 24, 1959 (for a 20Price—To be supplied by amendment.
working capital. Office—405
Exchange National Bank Bldg., Denver, Colo. Under¬
writers—Boettcher & Co., Inc. and Bosworth, Sullivan
for each share held

day

standby).

Proceeds—JTor

additional

Co., Inc., both of Denver,

•

■^-Aerojet-Genera! Corp.

new

$1),
and

to be reserved for sale to the holders
of 6% debentures due 1962 issued by DeCoursey-Brewis
Minerals Ltd., the company's parent (payment for the
shares by such debenture holders may be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares purchased
for cash or for the 6% debentures of the parent at the
rate of one for each five shares purchased. Price—$1.25
per share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—To be named by amendment
are

Allied Television Film Corp.

April 28 (letter of notification)
mon

150,000 shares of com¬
($1 per share).
Proceeds—
Office — 2700 Wilshire Boulevard,
Underwriter—Alkow & Co., Inc.,

Price—At par

stock.

the

issue

Unsubscribed

will- be

offered

stock

Alsco, Inc. (6/15-19)
May 15 filed $4,000,000 of 5/4% convertible subordinated
debentures due June 1, 1974. Price—100% of principal
,

amount. Proceeds—To reduce short-term bank loans;

to
liquidate the balance of loans from the Estate of Dora
Sugar Weinstock advanced for construction purposes;
to prepay an instalment on funded indebtedness; to re¬
deem all

Hirsch & Co. and Bache & Co.,

March

26
filed
1,000,000 shares of capital stock, of
which 700,000 shares are to be offered publicly in the
United States, and 300,000 shares in Canada. Price—Re¬
lated to the then current market price on the Canadian

Stock Exchange (31 cents per share
ceeds—For properties, drilling

on March 16). Pro¬
costs, working capital and

general

corporate

Office

purposes.

303

—

Bldg., Edmonton, Canada. Underwriter—None
States; Forget & Forget in Montreal, Canada.

Alexandra

in United

American Asiatic Oil
Corp.
Nov. 24 filed 100,000,000 shares of
capital stock.
Two cents per share. Proceeds—To

Roberts,

Arnav Aircraft Associates, Inc.
May 14 (letter of notification) 150,000 shares of common
(par 10 cents). Price—$2 per share. Proceeds—To

certain indebtedness, to finance increased inven¬
tories, for working capital, etc. Business—Manufacturers
of hydraulic fluid line fittings and related products for
the aircraft and missile industries. Office—32 Industrial
Ave., Little Ferry, N. J. Underwriter—Hamilton, Waters
repay

Co., Inc., Hempstead, L. I.} N. Y.<-

•

2ffictTMagsaysay Building, San

Luis, Ermita, Manila,
of Philippines.
Underwriter
Gaberman &
Hagedom, Inc., Manila. Republic of Philippines.
Republic

—

American Bakeries Co. (6/17)
May 19 filed 60,000 shares of common stock

(no par).
supplied by amendment. Proceeds
To
selling stockholders. Office—919 No.
Michigan Ave., Chi¬
cago, 111. Underwriter-—Merrill
Lynch, Pierce, Fenner &
Smith, Inc.
Price—To

—

American Commercial
Corp. (6/15)
May 14 (letter of notification) 250,000 shares of
preferred
stock (par 50
cents) and 50,000 shares of Class A com¬
mon stock (par 10
cents) to be offered in units of five
'

shares of preferred stock and

Price

per

unit.

purposes. Office

one

Proceeds

744 Broad

American

For

common

general

share.

business

St., Newark, N. J. Business

r^-To fiance accounts receivable.
Securities, Montclair, N.

Class A

—

Underwriter—Phoenix

Hospital Supply Corp.

April 20 filed 20,610 shares of common stock
(par $2) to
be offered in
exchange for common stock of Massillon
Rubber

2020

Co.

the

basis

andria, Va.
Underwriter
Washington, D. C.

(6/11)

;

is President.

;

Lemon
f

Ltd.

the

company

proposes

snares

capital and other general corporate purposes, in¬
cluding research
and
development.
Office — 1860
Franklin Street,. Santa Monica,. Calif.
Underwriter —
Bear, Stearns & Co., New York. ing

if Bluegrass Oil & Gas Corp.

May 19 (letter
of notification) 3,000 shares of common
,stock. Price—At par ($50 per share). Proceeds—For gas
and oil exploration. Office—310 W. Liberty St., Louis¬

ville, _Ky. Underwriter—None.

».

stock, of which,

'»■

**■

Petroleums; Ltd.
March 30 filed 1,150,000 shares of capital stock of which
1,000,000 shares are owned by Wilshire Oil Co. of Texas
stockholders and

150,000 shares are issuable upon exer¬
purchase warrants, exercisable on or be¬
fore Dec. 31, 1960 at $5 per share/ Office—630 Eighth
Avenue, S. W., Calgary, Canada.
'

cise

of share

Brockton

Edison Co.

(6/23)

May 7 filed $5,000,000 of first mortgage and collateral
trust bonds due April 1, 1989. Proceeds—To prepay its
short-term bank loans, to purchase $2,014,100 of de¬
benture bonds and $1,665,100 of common stock of Mon,

taup Electric Co., and for construction purposes. Under¬
be
determined
by - competitive bidding.

writer— To

bidders:

Halsey, Stuart & Co. Inc.; Stone &
Corp.; Kuhn, Loeb & Co.,* Salomon
Wood Struthers & Co/ (jointly);
Kidder, Peabody & Co., White Weld & Co. and Shields
& Co..(jointly); Eastman Dillon, Union Securities & Co.
Bids—Expected to be received up to 11 a.m. (EDT) on
Webster

Securities

Bros.

Hutzler

23.

and

;

Brookridge Development Corp.
'Dec. 19 (letter of notification) $200,000 of 6% 15-year
convertible debentures." Price—At par ($500 per unit),
rProceeds—For expansion and working capital
Office—
<901

Seneca

Ave.;- Brooklyn

Sano & Co., 15

—Temporarily

Underwriter

William St., New York, N. Y.
suspended by SEC. V

Offering

Buckeye Corp., New York
April 28 filed 192,039 shares of 5% convertible preferred
stock, series A, (par $10) and 164,299 shares of common
stock (par $1),
All of the preferred shares and 99,299
shares

with
other
,

to issue 126,072 shares to A.M.I.

Britalta

Automatic Canteen Co. of America

new

expire June 20.

March 2 filed 292,426 shares of common

(6/10)

10, 1959, on the basis
for each 10 shares then held. Rights
Price—$6.75 per share. The remaining
13,000 shares will be sold for account of selling stock¬
holders at $7 per share. Proceeds—For additional work¬
of three

Co.,

if Automatic Cafeterias for Industry, Inc. (6/9)
April 17 (letter of notification; subsequently amended)
100,000 shares of common stock (par 10 cents). Price—$3
per share. Proceeds — For expansion, equipment and
working capital. Office—450 Westbury Ave., Carle Place,
L. I., N. Y. Underwriter—Caldwell Company, 26 Broad¬
way, New York.

American

nine

Corp.

stockholders of record June

mon

per

one s^are
Massillon common. Office—
Ridge Avenue, Evanston, 111. Underwriter—None.
a

Benson-Lehner

May 4 filed 89,620 shares of common stock, of which
76,620 shares are to be offered for subscription by com¬

for

Robert Kamon

31,

•

filed 4,000,000 shares of common stock.

(56^4 cents

Price—100% of principal amount.

outstanding bank loans maturing
1959, for working capital and other corporate
Underwriter — Stone & Webster Securities
Corp., New York.
\
•/..
* \ -

Price—
share). Proceeds—To purchase
improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.
Office—1301 Avenue L, Cisco, Tex. Underwriter—None.
par

cattle;

June 18.

To retire al

Johnston,

—

Australian Grazing & Pastoral Co.,
13

—

purposes.

Trust Certificates.

which
100,000 shares are to be offered publicly and 10,000
shares to employees under company's incentive plan.
Price—$15 per share. Proceeds—To reduce short-term
bank loans and to provide equipment for development
and production of propellant rockets.
Office — Alex-,

expire

Dec.

Probable

March 31 filed 110,000 shares of common stock, of

Jan.

each

June

Corp.

Albuquerque,

Co.,

the basis of $100 principal amount of deben¬
10 shares held on June 2, 1959; rights

for

Proceds

Offering—Exnected in two weeks.

Research

filed

holders

Price—At market. Proceeds—For investment.

Atlantic

Rosenthal

Bausch & Lomb

tures

if Associated Fund, Inc., St. Louis, Mo.
June 2 filed (by amendment) an additional 40,000 fully
paid Associated Fund Trust Certificates and 30,000 addi¬

•

Hyder,

Optical Co.
$8,542,000 of convertible debentures due
1979, being offered for subscription by common stock¬

tional Accumulative Associated Fund

Price-

—

Mex.

May

selling stockholder. Price
-^To be supplied by amendment. Proceeds—To acquire
aew bowling centers and increase working capital (part
to be used in defraying cost of acquisition of stock of
owner of a Brooklyn
(N. Y.) bowling center.
Office—
135 Front St., N. Y.
Underwriter — To be named by
amendment.

com¬

cents).' Price—25 cents per share.
mining expenses. Office—c/o Harold A.
President, Arroyo Hondo, Santa Fe, N. Mex.

Underwriter
N.

(par

Proceeds—For

Armstrong Uranium Corp.
/
;
Jan. 16 (letter of notification) 3,000,000 shares of com¬
mon stock (par one cent).
Price — 10 cents per share.
Proceeds—For mining expenses. Office—c/o Hepburn T.
Armstrong, Round Up Heights, Cheyenne, Wyo., Under¬
writer—Bruno-Lencher, Inc., Pittsburgh, Pa. .■

stock

mon

selling stockholders.

if Apache Oil Corp.
May '25 filed 350 units of participation in the Apache
Oil Program 1960 and 70,000 rights for the purchase of
common stock (par $1.25).
The offering is being made
only to the stockholders of the company. Each subscrip¬
tion to a unit in Apache Oil Program 1960, will entitle
the subscriber to subscribe also to 200 rights for the
purchase of one share per right of the company's $1.25
par value common stock. Warrants evidencing the rights
will be nontransferable prior to Aug. 16, 1960, and will
expire at 2:00 p.m., (CST) on Jan. 31, 1962. Unless
Apache Oil Program 1960 commences operations on or
before June 30, 1960, all unexercised rights will be void
as of 2:00 p.m.
(CST) on that date, and their purchase
price will be refunded. Price—$12,000 per unit. Pro¬
ceeds— For general corporate purposes.
Office —523
Marquette Avenue, Minneapolis, Minn. Underwriter—
APA, Inc., the corporation's subsidiary,
v
■
V ;

be offered for the account of

Alscope Explorations Ltd.

Materials, Inc.
April 9 (letter of notification) 1,200,000 shares of

Basic

standing shares of common stock (par one cent). The
preferred shares are to be offered for public sale for the
account of the company and the common shares will

—

Proceeds—To selling stockholders.

Underwriter—None.

Anchorage, Alaska. Proceeds—To discharge
loan; for drilling and exploration; and for general
corporate purposes. Underwriter — National Securities
Corp., Seattle, Wash.

Ohio;.

Underwriters

Inc.

the-Counter Market.

Associated Bowling Centers, Inc.
Nov. 24 filed 300,000 shares of 20-cent cumulative con¬
vertible preferred stock (par one cent) and 50,000 out¬

ville, Tenn.

Atomics
filed

444,246 shares of common stock (par 10
Price—At prevailing market price, in the Over-

cents).

the

outstanding 1,089 shares of $100 par preferred
stock of a subsidiary; for capital
expenditures; and for
working capital.
Office—225 South Forge St., Akron,
both of New York; and Equitable Securities
Corp., Nash¬

Basic

March 5

bank

Alaska Mines & Metals Inc.

Forworking capital.
Los Angeles, Calif.
Beverly Hills, Calif.

incidental to operation of an insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, Colo.
Underwriter—Ringsby Underwriters, Inc., Denver 2,
coio.;:;/
pany.-.

Second Ave.,

Kidder, Peabody & Co., New York.

balance

Co./

expenses

public and to holders of stock options. Office—134 East

May 27 filed 175,000 snares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
pay advances from General Tire & Rubber Co. Office—
6352 North Irwindale Ave., Azusa, Calif. Underwriter—

431,200 shares

share for each three then held.
the

and

(6/25)

Feb. 25 filed 1,431,200 shares of common stock (par
of which 1,000,000 shares are to be offered publicly

Bankers Preferred Life Insurance

will be offered^ at a price of $1.50 per share, to
stockholders of record June 1, 1959, in the ratio of one

400,000 shares of common

per

Jan. 30 (letter of noflifcation) 100,000 shares of common
stock (par $1.60). Price—$3 per share.
Proceeds—For

which

stock (par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,
and Williams, Widmayer Inc., Washington, D. C.
Stop
order proceedings instituted by the SEC.
filed

Anchorage Gas & Oil Development, Inc.
27 filed 450,000 shares of common stock, part

effec¬

common stock (par $1).
share.
Proceeds — To develop and
embodying the boay lift principle,
etc.
Underwriter—Weil & Co., Washington, D. C. Note:
SEC to hold hearing June 18 regarding statements in
prospectus.
v' •'//.;. •'
•;
/'

Corp. Ltd.

May

Statement

manufacture aircraft

Street, Regina, Saskatchewan, Canada.
Underwriter—
Securities, Ltd., Regina, Canada.

Inc.

'/•;/''•/

Bahard Aircraft Corp.

Price —$3.25

Cumberland

Heller & Co., both of New York. Offer¬
ing—Expected in four or five weeks.
Inc. and Stanley

Gas

assets, and the re¬
to be issued upon the exercise

April 17 filed 300,000 shares 6i

and 245,000 shares by the holders there¬
Proceeds—For explora¬
tion and development program.
Office — 2100 Scarth

equipment, operating expenses, working capital and pay¬
Underwriters — Milton D. Blauner & Co.,

Dec.

Natural

•

(■

■

and

maining 166,354 shares are
stock options. Underwriter—None.

Price—30 cents per share.

of.

ment of notes.

Research Associates,

property

tive March 31.

of the company,

May 12 filed 95,000 shares of common stock (par 10
cents). Price—$2.50 per share. Proceeds—For additional

Advanced

Petroleum

latter's

March 23 filed 745,000 shares of capital stock (no par),
of which 500,000 shares are to be sold for the account

(6/15-19)

Inc.

Specialties,

Accurate

Amican

Colo.

the

for

Inc.

Service, Inc.
Feb. 17, 1958, filed 375,0UU shares of common stock (par
$1). Price—$4 per share* Proceeds—To purchase equip¬
ment and supplies and for working capital and other
corporate purposes. Office—Salt Lake City, Utah. Un¬
derwriter—Amos Treat & Co., Inc., New York, has with¬
drawn as underwriter. Change in Name — Formerly
United States Telemail Service, Inc..
/.

common

stock

will

connection

acquisitions of businesses and assets; the
65,000 common shares are reserved for issuance

under Employee Restricted Stock Options. Underwriter
—None,

■

• Cemex Industries, lnc.:"';

issued

certain

May 26 filed 200,500 shares of common stock, of which
170,000 shares are to be offered publicly. The remaining
30,500 shares are subject to sale under stock purchase
options granted to employees. Price—$3 per share. Pro¬
ceeds—For purchase of properties, for construction of
additional warehousing space, and for working capital.
Off'ce—2822 35th St., Tampa, Fla.
Underwriter—Pierce,
Carrison, Wulbern, Inc., Jacksonville, Fla.

Volume

189

Number 5852

The Commercial and Financial Chronicle

★ Central American Mineral Resources, S. A.
common stock, of which
500,000 shares are to be offered for the account of the

Colonial Energy Shares, Inc.,
Boston, Mass.
May 5 filed 1,100,000 shares of common stock.
Price—

company and

—White, Weld & Co., New York, and Dean Witter &
Co., Los Angeles, Calif. Offering—Expected late in June.

May 27 filed 620,000 shares of

debentures for each 22 shares then

May 27.

4-f—For

held; rights to expire

Price—100% of principal .amount.

incurred for such purpose.

bank loans

Un/
derwriter—Eastman Dillon, Union. Securities & Co., New
*1?York.' "

Century

Brick Corp. of America--.

•

and

stock.

Price—$2

Baldwin

per

share.

the

company."

Building,

1005

Proceeds—To be added to
Office—1020 G.

Daniel

State Street,; Erie, Pa.

Under-

r; writer—Summit Securities, Inc., New York, N. Y.
Chattanooga

Industrial

of industrial properties and for

—Chattanooga, Tenn.
Civic

working capital.-.Office

Underwriter—None."*'

•

Price

stock.

$205 per unit.
Office—Suite 421, 901

capital.

—

Commerce Oil Refining Corp.

mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be

Finance Corp.-*

May 1 filed 30,000 shares of:common stock (par $2). Price
—To be supplied by amendment. Proceeds—To
provide
I additional
working capital. Office—633 North Water St.,
>
Milwaukee, Wis. Underwriters—Emch & Co. and The
I Marshall Co., both of
Milwaukee, Wis./;
J..
■

....

The

tion

•

Consolidated

Underwriter-

purposes.

Electrodynamics

April 29*4iled $7,616,500 of 4*4%

Corp.

(6/8)

convertible subordin¬

ated debens. due June 1, 1984,
being offered for subscrip¬
tion by common stockholders in the ratio of
$100 deben¬
tures for each 14 shares of common held as of

May 20;
rights to expire on June 8. Price—At par. Proceeds—To
hank loans. Office—Pasadena, Calif. Underwriter—*
Blyth & Co., Inc., New York and San Francisco.

pay

jffered in units

as follows: $l,00u of bonds and 48 share*
$100 of debentures *nd nine shares of stock

be supplied

by amenuinent. Proceeds — Tc
construct refinery. Underwriter—Lehman
Brothers, New
fork. Offering—Indefinite.
:
Compudyne Corp. (6/26)
May 15 filed 214,071 shares of

stock

common

(par

cents), of which 172,000 shares

Development Corp.

March 25 filed 37,500 shares of common stock. Price—
$20 per share. Proceeds—For purchase arid development
:

working

-Dec. 16,1957 filed $25,000,000 of first

Price—To

common

one

Proceeds—For

Sherman Street/ Denver, Colo. Underwriter—Associated
Securities 412 Main Street, Cedar
Falls, Iowa.

)i stock and

April 6 (letter of notification) 150,000 shares of

.^'general funds

new

tures

•,

one

thereof then

gram, and for other corporate
Putnam & Co., Hartford, Conn.

Proceeds

construction program, including the repayment of

short-term

stockholders of record June 3, 1959, at the
share for each four shares or fractions

common

rate of

(par $1) to be offered in units of $200 of deben¬

Light Co.

April 23 filed $10,038,700 of 4*4% convertible debens. due
1974, being offered for subscription by common stockholders of record May 12, 1959, on the basis of
$100 ol
on

Jtock

(letter of notification) $2120,000 of 6% unsecured
debentures due April 1, 1964 and 1,100 shares of common

,■

Underwriters

Colorado Water & Power Co.

Office—161 East 42nd St., New York, N. Y. Underwriter

!■ —None.
Illinois

investment.

held; rights to expire on or about June 23.
remaining 982 shares are to be offered for' subscrip¬
by employees. Price—To be supplied by amendment.
Proceeds—To repay in part the company's outstanding
bank loans; to finance part of its 1959 construction
pro¬

Central

Proceeds—For

Feb. 25

120,000 shares for the account :of certain
Price—$1 per share. Proceeds—To
; finance' acquisitions and
to increase working capital.

J selling stockholders.
,

market.

39!

(2551)

are to be offered for the
account of the company and 42,071 shares for the account
of a selling stockholder/
Price—$3 per share. Proceeds—
To continue development of

products and control tech¬
niques for incorporation into the company's present con¬
trol systems; and for
working capital. Office—404 South
Warminster Rd., Hatboro, Pa.
Underwriters—Milton D.
Blauner & Co.,
Inc., New York; and Hallowell, Sulz¬

berger, Jenks, Kirkland & Co., Philadelphia, Pa.

Consolidated

fered

Connecticut Water Co. (6/4)
May 15 filed 38,986 shares of common stock (no par), of
which 38,004 shares are to be offered for
subscription

Gas

Co.

l-for-10 share basis to stockholders of record

May 21, 1959; rights to expire on June 10. Price—$47
per share. Proceeds—Additions to treasury funds and to
finance construction.
Underwriter—None.
Consolidated

Petroleum

Industries, Inc.

April 30 (letter of notification) 80,000 shares of 6% con¬
vertible preferred stock (par $3.50) and
80,000- shares of
common stock
(par 10 cents) to be offered in units of
one share of
preferred and one share of common. (Pre¬
ferred stock may be converted into two shares of com¬
mon

stock at any

—For

time.) Price—$3.75 per unit. Proceeds
development of gas properties. Office—908 Alamo

National

Natural

April 28 filed 821,256 shares of capital stock being of¬

Bank

Building, San Antonio, Texas.

Under¬

writer—Frank Lerner Co., New
York, N. Y.

Continued

page

.11.,

NEW
June 4

Connecticut Water
(Offering
v■

:i i

•,

...

Nuclear

■

(Thursday)

Co._______i

;

38,004

Electronics

Bids

Accurate
J

Co.)

invited)

Co.)

$750,000

June

Crown Self-Service

tei.

75,000

Commercial
(Phoenix

Crosby-Teletronics

(Friday)

Poly

Industries,

Co.) .$1,250,000

Co./200,000

-f':

June
Continental

Tobacco
Best

■

Electronics

Werthelm
"•

Co.)

.■£

Common

Corp._^__r___/_——Common

Emery Industries, Inc

""■*& ; ■
;

San

——-Debentures

(Offering to stockholders—no

underwriting)

for

Business, Inc
$750,000

Hirsch

-1

ST-.'

Superior Window Co

(Reynolds &

132,500 shares,

Ideal Precision

Meter

'Charles

Precon

Plohn

Electronics

(Charles

Co., Inc
&

Co.)

(Shcarson,

-V

(B.

Bradford

Fennekohl

Inc.*

$600,000

$150,000

\V"

■

(Blyth

iCaldwell

Power

dj;

Cbjmmoni

$300,030

EOT)

a.m.

<R.

Will

llolman

Co.,

Inc.)

__Copmon

$200,000

<Blunt

Ellis

June 10

Simmons)

88.512

Bear.

■

Electronic

89,620

100,000 shares

Food

Fair Properties Development Inc.—
^Bondft:
(Eastman Dillon, Union Securities & Co.) $7,500,000,'.
£

Multi-Amp Electronic
Everett

(G.

400,000

Corp.—

Parks

Common

Co.'," Inc.)

f;-.

$298,500

Co.)

387,300

(Thursday)
Common
&

Co.)

175,000

Jackson

Common

Curtis)

$1,715,000

Bead*
EDT)

a.m.

$5,000,000

Bonds

100,000

Co.)

Voss

EDT)

a.m.

Bond*

$10,000,000

Oil Co

(Friday)

Blauner

Common

& Co., Inc. and Hallowell,
Kirkland & Co.) $642,213

General Precision

Equipment Corp

Sulzberger,

.Preferred

(Offering to stockholders—underwritten by The First Boston
Corp. and Tucker, Anthony & R. L. Day) 105,927 shares
•

Common

(Hill,

Darlington &.

(Jim)

June 30

$1,000,000

Co.»

Common

Corp

(Bids

Corp

(Jim)

(Tuesday)

Montreal Canada

150,000 shares

(Alex. Brown & Sons)

Walter

(Milton

Jenks,

Common

Staats &

June

Compudyne Corp.

$4,500,000

EDT)

a.m.

Debentures
to

invited)

Bonds

$20,000,000

(Alex. Brown & Sons) $1,250,000

July 6
June 17

..—Common'

(Kidder, Peabody & Co.. 'Inc.)

i'.i.'

(Bids

Coii|moh,

Co^lmoix& T3o.)

Stearns

Peabody

Bids

Debentures

(Wednesday)

Technical

(Wednesday)

Engineering Co

Common

;

Mississippi Power Co

(H. C.) Oil Tool Co

sharij&t:

Benson-Lehner Corp.

$6,000,000

Treat & Co., Inc.)

Amos

United Gas Improvement Co..

Ross, Inc

ir.vited)

Sachs

Webber,

Common

Inc.)

Co.,

(Bids

Walter

$25.000,000:

Sterling Television Co., Inc.______i

etc

'%;

__Prefi|rred

(Bids

Company)

and

St. Joseph Light & Power Co
Smith

300.000

Reichhold Chemicals, Inc

&/Com.

Automatic Caleterias for Industry, Inc
Duke

,oC

Brother.* and

$10,GOO,000

(William

(Tuesday)

Co.)

(Paine,

$1,500,000

Debens.
Co.)

Hirsch & Co.

Corp

(Goldman,

• s

Equip. Tr. Ctfs.

Financial

$25,000,000

Lehman

International Recreation Corp

(Bache

'-$0$;'$''$

•o ~
3 '

,/-s.■"/.i,■ June 9

(Tuesday)
Common

Haupt <fe Co.;

invited)

Co.,

Aerojet-General Corp.

Herold Radio & Electronics Corp
(Ira

Bonds

Locb & Co.)

June

$1,440,COO

Inc*)

^.Common

Inc

Wesco

$8,000,000

Corp

Products,

Common

Debentures
&

Common

Co.)

!
300,000 shares

Co.)

Common

/(Milton D. Blauner & Co..

Worthington

June
Fabrex

Common

200,000

Plohn

330,000 shares

(Wednesday)

Freres

(Kidder,

Securities Co.,

Hammill & Co. and J*. C.

Industries

(Charles

-Common

$875,000

Telectro

Co.)

Southern Pacific Co

Spartans Industries, Inc

Ryons

Common

Italy

(Lazard

(Bids

America, Inc

Electronics, Inc

—Comnjon

Netherlands

Montecatini

$500,000

$613,625

Corp

Plohn & Co. and

and Lester

$20,000,000

Kuhn,

—Class A Common

Bonds

CDT)

a.m.

Peabody &

(Bids

(George O'Neill & Co., Inc.) 210,000 shares

Wellington

Long Island Lighting Co..

$500,000

Debentures

Inc.

Co.,

Co.

Common

t.Newhard, Cook & Co.)

riV'

(P. N.) & Co.—„,

Co.)

$5,000,000

Federation, Inc
(Kidder,

Preferred

Thriftimart, Inc.
Vocaline

Class' A

(Tuesday)

June 24

Financial

Common

Co
&

Hemphill, HOyes

Bonds

(Dean Witter

■

Diego Imperial Corp

(Joseph Mar.dell <fc Co., Inc. and. Robert L. Ferman & Co., The.)

Corp.)

(Cruttenden, Podesta & Co.)

162,025

(Laird & Co.

Superior Window

$6,103,7.0ft,

.Couppon

.(Shearson, Hammill & Co.)

Funds

Common

Debentures-Common

(Cruttenden, Podesta

Food Mart, Inc.————

f /

20,000

and

Gas Co

(Bids

Oklahoma Cement Co._.

(Hayden, Stone & Co.) $18,000,000

100,000 shares

Saltsman)

Co.

150,000

11:30 a.m. EDT)

Ryan Aeronautical

—-Common

(Lehman Brothers)

(Torpie

(Bids

Debens.

Associates, Inc

Co.)

June 23

$200,000

Inc.)

$360,000

Common

Hallgarten &

Northern Illinois

(White, Weld & Co. and J. A. Hogle & Co.) 1,400,000 shares

'-r'

Inc.)'$125,000

$843,750

Common

Lyon & Co.,

Co., Inc.———_

Co.)

Magnetics, Inc

Brother's;

-Common

Lomasney

Narda Ultrasonics Corp

(Monday)

Securities,

Capital

Brockton Edison Co

Inc..

(Ross,

Telemeter

Common

Plohn

Pfd.-Common
$300,000

Corp.

Equities,

Microwave

;

Debentures
$15,417,500

Or"/

Land

stockholders—underwritten

Corp.—

Securities)

Corp

(Charles

(Lehman

(Offering not underwritten) $500,000

Common

(Van Als.tyne, Noel

Stanley Heller & Co.)

Investors Funding Corp. of New York

.Common

Inc

Spiegel, Inc
(Offering

Stores, Inc

(Charles Plohn

'.t;

and

Design

(Hirsch & Co.; Bache & Co. and Equitable Securities Corp,)
$4,000,000

American

(Myron

>»;/.;

Radar

Common

Debentures

Common
&

V /

(Monday)

Inc.—_„_/

Alsco, Inc.

$4,470,000

Teleflex Ltd.___—
(Drexel

Specialties,

$237,500

Common
Equip. Tr. Ctfs.

CALENDAR

(Milton D. Blauner & Co., Inc.

(Charles Plohn & Co.)

•

Putnam

Corp.—

Seaboard Air Line Ry.

H>i-

June

f_—./.Common

stockholder*—underwritten

ISSUE

American

Bakeries

(Merrill Lynch,

Gilpin

Fenncr & Smith)

Pierce.

(Henry B.)
(Alex

Common

(Henry B.)

Sonsi

(Alex. Brown & Sons and

Common

Co.)

75,000 shares

(Tuesday)

Northrop Corp.

$725,000

Common

Stores,

Drug

Stearns &

July 7

Debentures
&

(Alex Brown & Sons)

Peoples

(Bear.

60,000 shares

Brown

(Monday)

Operations, Inc

(William

Debentures
Staats

Co.

and

Blyth

Co.,

Inc.)

$10,000,000

17,500 shares

.Common

Inc

Kidder, Peabody & Co. >121,000 shares

(Tuesday)

July 14

June
Atlantic

Research

(Thursday)

>J;

Corp

10Q.000 shares

Corp.

(Offering
•

,c-

$3,815,800

(Kidder,
..

Kaltman

Bids

Wire

(Charles Plohn

Co.

Bullard

(Friday)

$5,000,000

a.m.

EDT)

Bonds

$8,000,000

July 22 (Wednesday)

__a

Smyth)

143",750

;

.Common

Common
shares

Northern States Power Co.

(Monday)
Common

Corp

Netherlands

Securities

$375,000

Polymers, Inc
&

and

Medearis

Industries,
Treat

Co..

Morris

(Lehman

Inc

Erothers

and

Inr )

August 4

Forgan

$550,000

Debentures
&

Co.

Pennsylvania

Electric

(Tuesday)

$40,000,000

Bonds

Co.—

(Bids to be Invited)

$750,000

—

Glore,

Common

(GcneralTnvesting Corp.)

Philip

(Minn.)

(Offering to stockholders—bids to be Invited) 714,000 shares

Inc.)

Common

Inc
<%•

Co..

Microriaire Elec. Med. Prods. Corp.—Com. & Warr.

Materials &

Cable

(Amos

(Fflor,

(Bids

Bonds
EDT)

a.m.

June
Jefferson

Common

Co.)' 100.000

(D.) & Co., Inc

■

Jersey Central Power & Light Co

(Thursday)

Worcester Gas Light Co

•'

Corp.___

Peabody

June

Allen■&'Co.t

(Offering fo stockholders—underwritten by Bear, Stearns & Co.)
'
"
1,406,141 shares

Plastic

Debentures

srockhoklers—.underwritten

Electronics

Polarad

June

,-Common

Johnston, Lemon-& Co.i

•

Fedders
.

September 17

$15,000,000

(Thursday)

Bonds

Georgia Power Co
(Bids to be

invited)

$18,000,000

The Commercial ancl Financial

McAlister Ave.. Wau-

indebtedness, etc. Office—665

foay

Underwriter—None.

Jregan. 111.

Mining Corp. Ltd.

Cree

April 17 filed 260,000 shares of common stock. Price—
80 cents per share. Proceeds—For exploration program.
Office—2100 Scarth St., Eegina, Saskatchewan, Canada.
Underwriter — Cumberland
Securities Ltd., also of
Eegina.

Okla.
Mav 26 filed 43.460 shares of 5# convertible pfd. stock
($25 par) and 12.559 shares of common (SI par), 34,460
shares of the preferred and 9,059 shares of common are
issuable upon the exercise of stock options granted when
the assets of Norbute Corp. were acquired on Aug. 6,
Crescent Petroleum Corp., Tulsa,

corporate purposes. Office—54 Kinkel St., Westbury,
Xj. I., N. Y.
Business—Designing, manufacturing and
conducting research and development of highly tech¬

equipment.

specialized electricaUand electronic

nical and

Underwriter—Myron A. Lomasney & Co., New York.

Crown Self-Service Stores,

one warrant,

year after their date.
Price—$5 per unit.
For establishment ol' proposed new stores,
counts

San

Proceeds—•

—

May 4 filed 99,885 shares of 5*4% cumulative converti¬

preferred stock (pdr $100) being offered for sub¬
by common stockholders of record May 26.
1959, on the basis of one share of convertible preferred
stock for each 38 shares of common stock held; rights
to expire on June 9. Price—At $100 per share (flat).
Proceeds—For expansion program.
Underwriter—The
First Boston Corp., New York.
ble*

—None.

scription

Carew

com¬

Underwriter—Sano

Dal ton

Finance, inc.
$500,000 of 7% subordinated debentures,
due Jan. 2, 1974, with attached warrants for the pur¬
chase of 100,000 shares of class A common stock. Price
—At face amount (in units of $500 each). Proceeds—To
finance making of additional loans and to reduce shortOffice—3800-34th St., Mi. Rainier, Md. Un¬
C. Kimball & Co., Chicago, 111.,-on a

derwriter—Paul

best efforts basis.

stock.

Price—I)

share. Proceeds—For new equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. Office—Toronto, Canada, and Em
porium, Pa
Underwriter—None.

per

DiT-MCO, Inc.
April 15 filed 30,000
about

Office—911

writer— Midland

shares
are

common

offered.

Proceeds—To selling stockhold¬

Broadway, Kansas City, Mo.
Under¬
Co.. Inc., Kansas City, Mo.

Securities

Proceeds—To repay outstanding
general corporate purposes. Office—

ital and to obtain

finance business, and balance to be
working capital. Underwriter
Investment
Service Co.. Denver Colo., on a best efforts basis.
consumer

—

Drexelbrook Associates

new

dealerships. Office

—

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
contracts.
Proceeds—For investment, etc.
Office—2480
Price—No

Street, N. W., Washington, D. C.
.

V-■

Fabrex Corp.

y.v

v.'-.

Underwriter—

(6/16)

: ■

/-■:

May 21 filed 300,000 shares of capital stock (par $1), of
which 150,000 shares are to be sold for account of the
company
ers.

and 150,000 shares for certain selling stockhold¬

per

unit.

Proceeds—To

Office —Broad

Streets, Philadelphia, Pa. Underwriter—None.

shares of

It is proposed

$1,000

—

To be used for loans to subsidiaries..

Office—

Properties, Inc.

selling stockholders. Office—1000 Robert E. Lee Rd., El

Paso, Tex.
York.

Underwriter—Shearson, Hammill & Co., New

;•/

Franklin

Electric

Co.,

Inc.

May 12 filed 40,000 shares of common stock (no par), of
which 20,000 shares are to be offered for account of
company, and 20,000 shares for the account of certain
selling stockholders. Price—To be supplied by amend¬
ment. Proceeds—To be advanced to a subsidiary for the
purpose of constructing an addition to a building now
•being leased from the subsidiary.
Office — 400 East
Spring Street, Bluffton, Ind. Underwriter—Fulton Reid
& Co., Inc., Cleveland, Ohio.
.
>
;

if Fran-Well, Inc.
;;May 25 (letter of notification) 300,000 shares of comimon stock. Price—At par ($1 per share). Proceeds—For
working capital. Office—100 E. Minner St., Oildale, Calif.
•Underwriter—None.

outstanding obligations and for general corporate
Business—Textile converting.
Office—115
40th St., New York. N. Y. Underwriter-^Bache &

Funds For Business, Inc.
(6/8-12)
May 8 filed 500,000 shares of class A stock (par 50 cents).
Price—$1.50 per share. Proceeds—For working capital.
Office—120 East 41st Street, New York. Underwriters—
Joseph Mandell & Co., Inc., New York; and Robert L.
Ferman & Co., Inc., Miami, Fla.

prepay

;

purposes.

Co., New York.
if Fanon Electronic Industries, Inc.

May 29 filed 150,000 shares of common stock. Price—$3
per

share. Proceeds—To retire an outstanding bank loan;
working capital to finance

and the balance will provide

Brooklyn, N. Y. Underwriter—L. D. Sher¬

Co., New York.

if Farmers Mutual Telephone Co. of Clarinda
May 19 (letter of notification) 1,531 shares of common
stock (par $100) to be offered to stockholders for a pe¬
riod of 60 days at book value as reflected by the com¬
pany's books at the end of each 30-day period

acquisitions.

750,000

Food Mart, Inc.
(6/8-12)
May 15 filed 162,025 shares of common stock (par $2).
Price—To
be
supplied by amendment. Proceeds—To

Price—To be supplied by amendment. Proceeds—To

a pro

subscribed shares will be offered to the public. Price—

Price—$10,000

16th
-None.

offered in units.

various

purchase

Fair Properties.

See Food Fair Properties Development Inc., above.

East 2626

rata basis of one-half share lor each share

for

the

stock of Food

cap¬

May 22 filed $2,000,000 of partnership interests, to be
used

(6/10)

Philadelphia, Pa.
Underwriter—Eastman Dillon, Union
Securities & Co., New York.
■,-■■■;

Spokane, Wash. Underwriter—Pacific InterMountain Securities, Inc., for any publicly offered shares.

man

warrants for

Food Fair

working

lic. Price—$2.50 per share. Proceeds—For

Berriman St.,

stock (par 50
Price—$3 per share. Proceeds—For acquisition
of undeveloped real estate, for organization or
acquisi¬

Chestnut

ceeds

(letter of notification) 61,708 shares of class A
stock (par 50 cents) to be offered to stock¬
holders. Unsubscribed shares will be offered to the pub¬

cents;.

for

Development Inc.

to offer these securities in units each consisting of

increased inventories and accounts receivable. Office—98

Diversified Inc., Amarillo, Texas
6 filed 300,000 shares of common

Properties

Securi¬

principal amount of the bonds and a warrant to pur¬
common shares.
Price—$1,000 per unit. Pro¬

Tower, Cincinnati, Ohio. Underwriter—None.

Jan.

tion

Fair

74th

chase 100

common

West

outstanding

16,000

Frice—$10.50 per share.

used

7,500

if Enamo-Bord Products Inc.

•

Mines Ltd.
common

Food

common

stockholders

Trent Ave.,

March 9 filed

June 5 filed 350,000 shares of

$7,500,000 of 25-year collateral trust bonds, due May 15,
1984 of Food Fair Properties Development, Inc. and (2)

May 14

Washington Ave., Sc-ranton, Pa.
Co., New York, N. Y.

Office—4334

—

stock (par 10 cents). Price—$1 per share. Proceeds
—For working capital. Office—Mearns Bldg.. 142-148 N.

ers.

•

Empire Millwork Corp., Corona, N. Y.

300,000 shares of

expenses.

May 5 filed together with Food Fair Properties Inc. (1)

April 17 filed 95,000 outstanding shares of common stock.
Price
$10.25 per share. Proceeds — To selling stock¬
holders.
Underwriter—None.

mon

only

common

bank loans and for

inc.

March 25 (letter of notification)

stock,

mining

Ave., Portland 6, Ore. Underwriter—Evergreen
ties, Inc., 4314 N. E. 96th Ave., Portland, Ore.

June 30. Price—At par.

€41,613 shares will be offered on a one-for-one basis to
stockholders of record May 15, 1959.
The remaining
858,387 shares will be offered publicly by the under¬
writer on a "best efforts'" basis. Prices—To be supplier!
by amendment. Proceeds—For repayment of notes and
for working capital. Underwriter — To be supplied by

Derson

ceeds—For

of record June 5,
1959. at the rate of $100 of debentures for each eight
shares of common stock then held: rights to expire on
scription

Corp., Pass Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which

„

Fluorspar Corp. of America
1
of notification—as amended) 300,000 shares
common stock.
Price—At par ($1 per share). Pro¬

Feb. 5 (letter
of

Emery Industries, Inc. (6/8)
May 21 filed $6,103,700 of 4%% convertible subordi¬
nated debentures due July 1, 1979, to be offered for sub¬

Crusader Oil & Gas

term debt.

Hayden, Stone & Co.,

(letter of notification) 250,000 shares of series 3
stock (no par) to be offered for subscription
by stockholders on the basis of one share of series 3
jtock for each three shares of series 1 and/or series 2
common stock held; unsubscribed shares to other stock¬
holders.
Rights expire 30 days from offering date
Price—$1 per share.
Proceeds—For working capital.
Office—333 S. Farish Street, Jackson, Miss. Underwriter

Crucible Steel Co. of America

Cycon,

—

common

368 E. 87th Street, Chicago, 111.
& Co., New York.

Diego, Calif, Underwriter

Ian. 19

Underwriter—Charles Plohn

amendment.

(6/8)

Emerite Corp.

to pay ac¬

payable (trade), to be applied to extinguish long -

Office

Corp.

New York.

and short-term loans, and the balance to increase work¬

ing capital.

capital

Electronics Capital

•

warrants, exercisable at S6 per

from its date

173,286 shares are to be offered to certain officers and
employees of Flintkote and its subsidiaries under
the "Flintkote Stock Option Plan"; 16,771 shares are
subject to options granted by Flintkote in substitution
for options granted by Orangeburg Manufacturing Co.,
Inc., to certain of its officers and key employees; and
37,311 shares are subject to options granted in substitu¬
tion of options granted by Blue Diamond Corp. to certain
of its officer and key employees. Flintkote acquired all
the assets of Orangeburg in December, 1958, in exchange
for 132,416 shares of preferred stock; and on May 14,
1959, it issued 615,617 common shares upon the merger
of Blue Diamond into Flintkote.

April 27 filed 1,800,000 shares of common stock (par $1).
Price—$10 per share. Proceeds—For investment. Office—

snare

p«r

;j>o.ou

ctt

Co., New York

key

amendment. Pro¬
expenditures and working capital.
Underwriter—Kidder, Peabody & Co. Inc., New York.

months after its date; other
share, expires 30 months
Warrants cannot be exercised until one

expires

common,

tXciCisao^c

(6/11)

May 20 filed 227,368 shares of common stock, of which

stockholders. Price—To be supplied by
ceeds—For

April 10 filed 250,000 units, each unit consisting of one
Chare of common stock and two common stock purchase
"warrants,

Flintkote

stock (par $1) of
which 78,750 shares are to be offered for the account
of the company (including 10,000 shares initially to em¬
ployees) and 21,250 shares for account of eight selling

(6'5)

Inc.

Island, N. Y.

May 12 filed $3,815,800 of sinking fund subordinated de¬

(6/10)

Underwriter—None.

Ave., Binghamton, N. Y.

May 13 filed 100.000 shares of common

Crowley's Milk Co., Inc.
March 26 filed 60,000 outstanding shares of common
etock (par $20). Price— To be supplied by amendment.
Proceeds—To selling stockholders. Office—145 Conklin

Thursday, June 4, 1959

—

Crosby-Teletronics Corp. (6/15-19)
May 22 filed 250,000 shares of common stock (par 25
cents). Price—$3.37 *2 per Share. Proceeds—For general

Underwriter—None,

1958.

•

the

cost

(letter of

if Cooperative Trading, Inc.
Hay 19 (letter of notification) 5,000 shares of common
ctoek to be offered to members or applicants for mem¬
bership. Price—At par (S10 per share). Proceeds—To

•

bentures, due May 31, 1959, with warrants to purchase
152,632 shares of common stock to be offered for sub¬
company's continuing construction. Under¬
scription by common stockholders in units of $100 of
writer—To be determined by competitive bidding. Prob¬
debentures with warrant for the purchase of four shares
able bidders: Halsev, Stua/t & Co. Inc.; The First Bos- :
of stock at the rate of one unit for each 50 shares held
ton Corp.; Morgan Stanley & Co.; Stone & Webster Se¬
on or about June 11,
1959: rights to expire on or about
curities Corp. Bids—Expected to be received up to 11
July 27. Price—$100 per unit. Proceeds—To be used for
a m. (EDT) on June 9 at the office of the Morgan Guar¬
the most part for the purchasing of products by com-^
anty Trust Co., Room 2322, 15 Broad St., New York. N. Y.
pany's distributors and dealers; and the balance will be
Eckert Mineral Research, Inc.
used for general corporate purposes. Underwriter—Allen
March 27 (letter of notification) 150,000 shares of com¬
& Co., New York.
mon stock (par 50 cents).
Price—$2 per share. Proceeds
feoeraieu
finance
Co.
/'%
—For mining and selling of ore. Office—110 E. Main St..
<uv.
17 (ieiter of notification, $300,000 of
LU-year 6%
Florence, Colo.. Underwriter—Harris Securities Corp..
enior
subordinated debentures.
Price—At par (in deNew York, N. Y.
lominations of $1,000 each /
Proceeds
* For
working
* Ed* Corp.
.
;
apital, to make loans, etc
Office—2104
"O" St., Lin¬
May 29 (letter of notification) 19,704 shares of class B
coln, Neb.
Underwriters — .1 Cliff Rahei & Co/and
stock and 19,704 shares of class A stock to be offered to
Ougene C. Dinsmore, Omaha. Neb.
:////y/y'/'-y/
certain key employees under an Employees' Stock Op¬
Finance For Industry,, Inc.
tion Plan.
Proceeds — For working capital. Office—
Jec.
16 filed 200,000 shares of class A common stock.
14-04 111th St., College Point 56, N, V.
Underwriter—
Price—At par ($1.50 per share;' Proceeds—For working
None,
■"/• >/;
apital. Office—508 Ainsley Bldg., Miami, Fla. Under¬
★ El Paso Electric Co.
writer
R
F. Campeau Co., Penobscot Bldg., Detroit,
May 27 filed 50,000 shares of common stock, to be pur¬
tfich.
chased pursuant to the company's Employee Stock Pur¬
chase Plan.
% if Financial Federations, Inc. (6/24)
May 27 filed 300,000 shares of capital stock (par $1). A
Electric City Supply Co.
portion thereof (unspecified; to be supplied by amende
April 6 (letter of notification) 300,000 shares of class A
ment) is to be offered for the account of the company
common stock (par 25 cents). Price—$1 per share. Pro¬
and the balance for certain selling stockholders. Priceceeds—For inventory, eauipment, working capital, etc
To be supplied by amendment. Proceeds—To repay a
Office—901 S. Lake Street, Farmmgton, N. Mex. Under¬
bank loan and for working capital. Office—210 West
writer—Investment Service Co., Denver, Colo.
Seventh St., Los Angeles, Calif. Underwriter—Kidder,
Peabody & Co., New York.
Electronic Engineering Co. of California

Inc. (6 8-12 >
notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price $1.25 per shaie. Pro¬
ceeds—For general corporate purposes. Office—60 <-12tn
Avenue, Huntington, W. Va.
Underwriter—Best Secucities, Inc., New York.
Continental Tobacco Co.,

April

Fedders Corp., Long

•

ic Duke Power Co. (6 9)
May 6 filed 250,000 shares of cumulative preferred stock,
series B (par $100). Proceeds — To finance in part the

Continued from page 39

•

Chronicle

(2552)

now

held. Un¬

Estimated at $140 per share. Proceeds—Working capital,
etc. Office—106-108 W. Chestnut St., Clarinda. Iowa.

Futterman-Dupont Hotel Co.
May 22 filed $1,706,900 of Limited Partnership Interests,
to be offered in units. Price—$25,000 per unit. Proceeds
—To repay monies borrowed for the purpose of closing
title and paying incidental expenses in acquiring the
Dumont Plaza Hotel in Washington, D. C.
Office—580
Fifth Avenue, New York, N. Y., Underwriter—None.
Gate City Steel Co.,

Inc., Omaha, Neb.
$1,250,000 6% sinking fund debentures,
May 1, 1969, of which $350,000 will be
offered, on an exchange basis, for a like amount of 5%
debentures which the company plans to retire. The re¬
maining $900,000 debentures will be offered publicly.
Price—Par. Proceeds—For advances to company's subMay

series

26 filed
A, due

.Volume 189

Number 5852

The Commercial and Financial Chronicle

Underwriter—First

Office—Government Employees Insurance Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,

common

General Aniline A Film Corp., New York
Jan. 14, 1957 filed 426,988 snares of common A stock (&«

Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed.

None.

sidiary, Moffett Engineering, Inc.—
Trust Co. of Lincoln, Neb.

par) and 1,537,500 shares of common B stock (par $lj
Proceeds—To the Attorney General of the United States
Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Boston

Corp. (jointly); Kuhn, Loeb & Co.; Lehmaz.
Brothers, and Glore, Forgan ACo. (jointly). Bids—Had
keen scheduled to be received up to 3:45 pjn. (EDT) «
May 13 fit Room 654; 101 Indiana- Ave., N.W.,Washinf

».

ton 25, B. C., but bidding has been ipostponed.
-General 'Merchandising Corp.,

Memphis, Tenn.'

•

Feb. 18 filed 250,000 shares of class "A" common stock
*

Feb.

stock held

stock in the ratio of

new

one

new

share for each 16%

$1.60 preference stock held on June 26; rights
to-expire on July 13. Prices—To be supplied by amend¬
ment. Proceeds—For- working capital. Underwriters—
The First Boston Corp., and Tucker, Anthony & R. L.
Day, both of - New York. %.,
May 21 filed 1,884,278 shares of common /stock (par $1)
to be sold from time. Idtimebn the American Stock Ex¬
change.

stock.
PricC-i-At par ($1 per share).
For development oi oil and gas properties.

Price—Relating to/lhe then current market on
Proceeds — To selling
Underwriter—None.

General Underwriters Inc. r"'

•April 6 (letter of notification) 225,000 shares of com- b
mon capital stock (par 25 cents).
Of the total, 195,000
shares are;to he offered for the account of the company*
and 30,000 shares for a selling stockholder. Price—$1 per
share. Proceeds—For furniture inventory and improved
merchandising methods, to finance the real estate depart¬
ment and insurance1 policy loans. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co., '
Inc., Pine Bluff, Ark.
;
^
,

K' ; General Waterworks Corp.
March 31 filed 16,131 shares of $5 voting preferred stock

(par $100) and 66,131 shares of 80-cent dividend voting
preferred stock (convertible—par $1). The com¬
pany proposes to offer one share of the 80rcent dividend
j- second preferred stock for each share of New Rochelle
Water Co. and one share of its $5 preferred and one
share of the 80-cent dividend second preferred for each
share of New Rochelle $3.50 preferred (including accumtdfited unpaid dividends from November, 1950). The
offer is conditioned upon acceptance by holders of 80%
of New Rochelle stock. Office—3219 Philadelphia Pike,
Claymont, Del. Statement effective May 12.
.

second

"A* Gestetner, Ltd.
June

filed

shares of
The

(England)

American

Depositary Receipts for 80,000

"A" ordinary registered

stock. Depositary—
Morgan Guaranty Trust Co., New York, N. Y.

Giant 'Food Properties,

Inc., Washington, D. C.
May 19 filed $680,000 5%% sinking fund debentures (GT
series), due Dec. 1, 1971, together with 74,800 shares of
common stock. Price—To be supplied by amendment.
Proceeds—To Richard Borden Industries, Inc., the selling stockholder. Underwriters—Auehincloss, Parker &
Redpath, Washington, D. C.; and Kidder, Peabody &
Co., New York.

• Gilpin (Henry B.)
Co., Baltimore, Md. (6/17)
May 19 filed $725,000 6% convertible subordinated de¬

•

stock

(no par). Price

—

To be supplied

amendment. Proceeds—-To repay notes payable and for
other corporate purposes. Underwriter—Alex. Brown &

;

'j.Sons, Baltimore, Md.
Glasco Corp., Muncie, Ind.
May 25 filed 100,000 shares of common stock (par $1).
Price—$10 per share. Proceeds—To be added to the gen¬
eral funds of the company and be used, together with
retained earnings, to maintain its program of research
/and development in the over-all field of commercial
refrigeration and more particularly in that of general
vending^machme design; and to reduce or eliminate the
necessity for seasonal short-term bank borrowings. Un¬
derwriter—Smith, Hague & Co., Detroit, Mich.

Government Employees Variable
Insurance Co.

Annuity Life

Herald Radio A Electronics Corp.
(6/16-19)
May 18 filed $1,500,000 of 6% convertible subordinated
debentures due June 15, 1974. Price—100% of principal
amount. Proceeds—To reduce notes payable, excise taxes,
payroll taxes and other current liabilities. Office-716
South Columbus

stock (par $4) of Government Employees Insurance
on the basis of one warrant per share of stock held
are now

outstanding);

Co.,
(1,-

(2) to holders of

; common stock (par $1.50) of Government Employees
Life Insurance Co., on the basis of 1% warrants per share
-

•

of stock held (216,429 shares are now outstanding); and
(8) to holders of common stock (par $5) of Government
Employees Coip., on the basis of % warrant per share of
stock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
converted itoto common stock prior to the record date,
a total of 164,733 common shares would be
outstanding.
Price—$3 per share. Proceeds—For capital and surplus.

Ave., Mount Vernon, N. Y. Underwrit¬

ers—Ira Haupt &

Co., Hirsch & Co. and Amos Treat &
Co., Inc., all of New York.
*
«
Hickerson Bros. Truck Co., Inc.

(letter of notification) 285,000 shares of com¬
Price—At par ($1 per share). Proceeds-^Tc
pay existing liabilities; for additional equipment; and
for working capital.
Office—East Tenth Street, P. 0
Box 68, Great Bend, Kan.
Underwriter—Birkenmays?
& Co., Denver, Colo.
mon

stock.

• Hirsch
(P. N.) A Co., St. Louis, Mo. (6/8-9)
April 29 filed 132,500 outstanding shares of common
stock (par $1). Price—To be supplied by amendment
Proceeds—To selling stockholders.
Underwriter—Newhard, Cook & Co., St. Louis, Mo.

Hoffman Motors Corp.
March 9 filed 260,000 shares of common stock (par $1).
of which 250,000 shares are to be publicly offered and

10,000 shares to officers and employees. Price—$10 par
shares to public; $9 to employees. Proceeds—To selling
stockholder.
Underwriter — For public offering: Van

Alstyne, Noel & Co., New York.
indefinitely.

Offering—Postponed

Home-Stake Production Co.,

Tulsa, Okla.

Nov. 5 filed

116,667 shares of common stock (par $6)
Price—$6 per share. Proceeds—For working capital and
general corporate purposes. Office — 2202 Philtowir
Bldg., Tulsa, Okla. Underwriter—None.
if Household Gas Service, Inc., Clinton, N. Y.
May 25 (letter of notification) 5,000 shares of common
stock. Price—At par ($10 per share).
Proceeds—For
repayment of debt; purchase of equipment and for work¬
ing capital. Underwriter—Mohawk Valley Investing Co.,
Inc., Utica, N. Y.
o

Co., Inc. (6/8-12)
May 19 filed 137,500 shares of common stock (par 10
cents). Price—$3.75 per share. Proceeds—For planned
expenditures and working capital, and for payment of
certain indebtedness. Office
126 Greenpoint Avenue,
Brooklyn, N. Y. Underwriter—Charles Plohn & Co., New

Imperial Growth Fund, Inc.
March 2 filed 600,000 shares of common stock. Price—Ai
Proceeds — For investment.
Office — 60 Mar¬

market.

—

Min¬

Industrial Minerals

Corp., Washington, D. C.
July 24 filed 600,000 shares of common stock (par on«
cent). Price—$1 per share. Proceeds-r-To develop and
operate graphite and mica projjerties in Alabama. Ui»
lerwriters—Dearborn & Co. and Carr-Rigdom & Co.
both of Washington, D. C.t on a best efforts basis. State¬
ment effective Nov. 18.

Information Systems, Inc., Skokie, III.
April 21 filed 170.000 shares of common stock to be of¬
fered for subscription by common stockholders of Panel-

- -

"';:yv

y1.:

;

Investors Funding Corp. of New York

(6/15)

Office—5U Fifth Ave., New York, N, Y. Undwr-

went.
r

writer—None.

.r;,. >-

if Investors Planning Corp of America, New York
'
June 2 filed $20,000,000 of single investment plans and
$80,000,000 of systematic investment plans and systematic;
plans with insurance, for the accumulation of shares of;
National Investors Corp. Price—At market. Proceeds-r- ;
For investment.

"/-V*"

Exploration^ Ltd.
April 24 filed 225,000 shares of common stock. Price—90
cents per share. Proceeds—To defray the costs of explo- '
ration and development of properties and for the ac-'
quisition of other properties; also for other corporate *
purposes.
Office—1950 Broad St., Regina, Sask., Can*
Underwriter — Laird & Rumball, Regina, Sask., Can..:
Irando Oil A

• Jefferson Wire A Cable Corp. (6/22-26)? 5 - /
May 27 filed 100,000 shares of common stock (no par)^
Price—$3.75 per share. Proceeds — To pay off various
indebtedness, for purchase of machinery, equipment and
raw materials, for plant facilities, for sales promotion,
and for working capital. Office—Sutton, Mass. Under¬

ties Co.,

Co. and Netherlands

Inc., both of New York.

Securi¬

• Jersey Central Power A Light Co.
(7/14)
May 21 filed $8,000,000 of first mortgage bonds due July
1, 1989. Proceeds—To be applied to the cost of the com¬
pany's 1959 construction program or to reimburse the*
company's treasury for expenditures for that purposeUnderwriters—To be determined by competitive bid¬

ding. Probable bidders: Halsey, Stuart & Co. Inc.; White, ;
Co.; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co.; Salomon Bros. & Hutzler ana
Merrill Lynch, Pierce, Fenner & Smith, Inc. (jointly)Bids—Expected to be received up to 11 a.m; (EDT). on
July 14.
^
Weld &

Kaiser Aluminum A Chemical

Corp.

May 11 filed 64,028 shares of 4%% cumulative convert-;
ible (1959 series) preference stock (par $100) and 128^052 snares of common stock, issued in exchange for theoutstanding stock of Mexico Refractories Co. through,
merger.
Price—To be supplied by amendment. Pro¬
ceeds—To selling stockholders. Underwriter—None,
o

Kaltman

(D.)

& Co., Inc.

(6/12)

May 13 filed 1,406,141 shares of common stock (par 50
cents) to be offered by Noma Lites, Inc., to the holders
of its 745,184 outstanding common shares at the rate ot
1.9 shares of Kaltman common for each share of Noma
common
stock held on June 10; rights to expire oa
June 24. * Price—To be supplied by amendment. ' Proceeds
To selling stockholder.
Underwriter — Bear,

—

Stearns
Land

Co.^ New York.

Equities, Inc., Santa Monica, Calif.

(6/15-19)
May 12 (letter of notification) 200,000 shares of class A
comomn stock (par one cent). Price—$1 per share. Pro¬
ceeds—For general corporate purposes. Underwriter-

Ross, Lyon & Co., Inc., New York, N. Y.

Exploration Co., Inc., Arnett, Okla.
April 30 filed (by amendment) 2,000,000 shares of com¬
mon stock (par $1). Price—$2 per share. Proceeds—For
machinery and equipment and exploration purposes^
Laure

•

York.

Feb. 17 filed $500,000 of 10% subordinated debenture* due July 31,1964, to be offered in units of $1,000./ Prlfi* "
~rAt 100% of principal ambunt. Proceeds—For invest-'

•

Ideal Precision Meter

quette Ave., Minneapolis, Minn. Underwriter
neapolis Associates, Inc., Minneapolis, Minn.

;

writers—Charles Plohn &

March 11

—

Nov. 13 filed 2,500,000 shares of common stock (par $1)
to be offered by company viz: (1) to holders of common

334,570 shares

•

com¬

Hereon Electronics Corp. V
May 21 (letter of notification) 100,000 shares of common
stock (par one cent). Price—$3 per share. Proceeds—To
defray expenses; to pay outstanding notes; to purchase
equipment and to further manufacturing facilities.
Of¬
fice—481 Washington St., Newark, N. J. Name Change—
Company formerly was known as Hermetic Connector
Corp. Underwriter—Richard Bruce & Co., Inc., 26 Broad¬
way, New York, N, Y.

bentures due June 1, 1974, and 17,500 shares of class A
common

Gulfport, Miss.

Proceeds—
Office—702

American-Bank'Building, Portland 5, Ore. Underwriter
—D. Earle Hensley Co., Inc., 4444 California Avenue,
Seattle, Wash.

the American Stock-Exchange.

stockholders.

New York and Boston.'

if Hausman Steel Co., Toledo, Ohio
June 2 filed 80,000 shares of common stock. Price—To
be supplied by amendment. Proceeds — To retire short
term bank loans, for general corporate
purposes and
for expansion of the company's business/Underwriters—
Howard, Weil, Labousse, Friedrichs & Co., New Orleans,
La.; and The Ohio Company, Columbus, Ohio.

mon

two- "

■'International Tuna Corp. /'r'
■*.'1"'
April 3 (letter of notification) 175,000, shares of claw
A common stock (par 50 cents).
Price—$1 per shamProceeds—For equipment and working' capital.
Offie*
—Pascagoula, Miss. Underwriter—Gates, Carter & Co*

General! Stores- • Corp. •/1;: •

City Securities Corp., Indian•"\'■

—

Hemisphere Gas A Oil Corp.
April 27 (letter of notification) 300,000 shares of

• International Recreation
Corp..4 (6/25 )i
"'J ;
May 14 filed 2,750,000 shares of-common stock (par 59 \
cents). The issue was later reduced by amendment to .>
980,000 shares. Price—$17.50 per share. Proceeds—For *
construction and acquisition. Office—60 State St., Boston,
Mass. Underwriter—Paine, Webber, Jackson & Curtis,

shares of

■

Connecticut Avenue,
— Investment

Underwriter

'
.

capital, Underwriter—Johnston, Lemon & Co.,' Wadhington, D. C. Offering—Indefinitely postponed.

Advisor

opolis, Ind.'-

year, 3 % per unit; series C, $1,000,000, four-year 4% par
unit; and series D, $3,500,000, 6-year, 5% per unit). PdSO
—100% of principal amount. Proceeds-—For working

filed 50,000 shares of common stock. Price—To
supplied by amendment. Proceeds—To selling stock¬

holders.

stock

International Bank, Washington, D. C.
Dec. 29 filed $5,000,000 of notes (series B, $560,000,

if Hamilton Cosco, Inc., Columbus, Ind.

June

Underwriter—
.

Co., New York, N, Y.:

June 3

26; rights to, expire on July 13. Each holder of the $1.60
preference series will have the right to subscribe for the

capital.

shares of com(par 25 cents). Price?r^3, per share. Proceeds
—For working capital. Office — 101 New South Road,
Hicksville, L. I., N. Y. Underwriter—Di A/Lomafcney
mon

Washington, D. C.
Advisory Service,
Washington, D. C» Underwriter—Investment Manage¬
ment Associates, Inc., Washington, D. C.

and i working

Instruments fori Industry, Inc.
(letter of notification) 100,000

America, Inc.
250,000 shares of common stock (par 10
Price—At market. Proceeds—For investment.

Investment

Costs;

May 22

filed

Office —1825

(6/26) ,
May 26 filed 105,927 shares of cumulative convertible
preference stock ($50 liquidating value) to be offered
for subscription by holders of the company's common
stock and holders of its $1.60 cumulative convertible
preference stock, in the ratio of one share of new pre¬
common

velopment

^Greenwich Gas Co.;
May 22 (letter of notification) 23,000 shares of common
stock (no par) to be offered to stockholders of record
June 1, 1959 on the basis of one new share for each
eight shares then held with additional subscription rights
subject to allotment.
Rights expire June 15.
Unsub¬
scribed shares will be offered to the public. Price—$12.50
per share. Proceeds—To pay bank loans and for working
capital. Office—33 Greenwich Ave., Greenwich, Conn.
Underwriter—F. L. Putnam & Co., Inc., Boston, Mass.

cents).

General PrecisionEquipment Corp.

ferred rfor each 11 shares of

one new share for each three Panelllk j
shares held of record May 15, 1959. Price—$3.59
per share. Proceeds—To pay notes, for research and de— ;

lit, Inc., at rate of

Growth Fund of

(par one cent). Price—$10 per share. Proceeds—For
working Capital and general corporate purposes. Underwriter—Union .Securities 1 Investment Co., Memphis,
Tenn. Statement effective April 24.

(2553)

Underwriter—None.
Lefcourt Realty Corp.
Jan. 29 filed

3,492,000 shares of common stock, of which*

exchange for all of
Q«
Inc.; 750,000 shares will be used for the exerciSA
option by the company to purchase from Big
Mound Trail Corp. some 3,784.9 acres of land on «r
before June 15, 1959; and the remaining 120,000 shares,
were sold for the account of a selling stockholder during
April, 1959. Underwriter—None.

2,622,000

shares were

tne common

issued

stock of Desser & Garfield, Inc., and D.

& R.,
of an

Continued

on page

42-

The Commercial and Financial Chronicle

(2554)

Continued from page

derwriter—G.

New

* Long Island Lighting Co. (6/24)
May 28 filed $25,000,000 of first mortgage bonds series
K
due 1989. Proceeds—To be used for construction of

utility plant and

to pay short-term bank loans

made

Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc. and The First Boston Corp.
(jointly); W. C. Langley & Co., and Smith, Barney &
Co. (jointly). Bids—Expected to be received on June 24.
such, purposes.

for

Mining Corp.
Sept. 29 filed 390,000 shares of common stock. Price—$1
per share. Proceeds — For the acquisition of properties
under option and for various geological expenses, test
drilling, purchase of equipment, and other similar pur¬
poses.
Offices—Wilmington, Del., and Emporium, Pa
Underwriter—None.
M. & S. Oils Ltd.

May 11 filed 390,000 shares of capital stock. Price—60
cents per share.
Proceeds — For exploration, develop¬
ment and acquisitions. Office—5 Cobbold Block, Saska¬
toon, Saskatchewan, Canada.
Underwriter — Cumber¬
land Securities Ltd.,
Mansfield Tire

Regina, Saskatchewan, Canada.

Rubber

Co.

May 7 filed $5,100,000 of convertible subordinate^ de¬
bentures, due June 1, 1974, to be offered for subscription
by common stockholders of record on or about June 2,
1959; rights to expire on or about June 18. Subscription
Basis—$100 principal amount of debentures for each 28
shares

of common. Proceeds—To pay short-term bank
loans, and to augment working capital. Office—515 New¬
man
St., Mansfield, Ohio. Underwriter—A. G. Becker &
Co., Chicago, 111.

Mary Carter Paint Co.
(letter of notification) 37,500 shares of com¬
(par $1) of which 25,000 shares are beting
offered/by the company, out of authorized but unissued
stock, and 12,500 shares are being offered by John F.
Crosby, Spring Lake, N. J. Price—$8 per share. Proceeds
—For payment of outstanding loans and working capi¬
tal, and to selling stockholder. Office—Gunn Highway
at Henderson
Rd.f Tampa 7, Fla. Underwriter—W. W.
Schroeder & Co., New York 5, N. Y.
stock

•

Medearis

Industries,

Inc. (6/22-26)
May 14 filed 200,000 shares of common stock (par 20
cents). Price—$3.75 per share.
Proceeds—For general
corporate purposes. Office — 42 Broadway, New York,
N. Y. Underwriter—Amos Treat & Co., Inc., New York.
Mercantile Acceptance Corp. of California
May 15 (letter of notification) $80,000 of 12-year 5V2%

capital debentures.

Price—At face amount.

Proceeds—

For

working capital. Office — 333 Montgomery Street,
Francisco, Calif. Underwriter—Guardian Securities
Corp., San Francisco, Calif.

San

★ Microitaire Electro Medical Products Corp.
(6/22)
June 1 filed 200,000 shares and
50,000 one-year war¬
rants for the purchase of common stock, to be offered for
public sale in units of 100 shares of common stock and
25 warrants.

The registration also includes an additional
200,000 three-year warrants, exercisable at $3, of which
150,000 have been issued to certain stockholders and em¬
ployees. Price—$275 per unit. Proceeds—To discharge

indebtedness; for expansion

Microwave Associates, Inc.,
Burlington, Mass.

(6/15-19)
May 21 filed 100,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For
general corporate purposes. Business—Develops and pro¬
duces components for radar systems.
Underwriter—
Lehman Brothers, New York.

Millsap Oil & Gas Co.
Dec. 23 filed 602,786 shares of common stock.
Price—$1
per share. Proceeds — For additional working
capital.
Office—Siloam Springs. Ark. Underwriter—None.
★ Mississippi Power Co. (6/25)
May 29 filed $5,000,000 of first mortgage bonds due July
1, 1989.
Proceeds—For construction program.
Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Eastman

Dillon,

Securities & Co. and Equitable Securities
Corp.

(jointly); Merrill Lynch, Pierce, Fenner & Smith; Kid¬
der, Peabody & Co. and White, Weld & Co. (jointly).
Bids~-Tol>e received up to 11 a.m.
(EDT) on June 25
at the office of the service
company, Southern Services,

Inc., Room-1600, 250 Park Ave., New York 17, N. Y.

★ Montecatini

(6/24)

June 2 filed

$10,000,000 of sinking fund dollar deben¬
tures due June 15, 1979, and warrants to
purchase capital
shares of the-company. The
debentures will be offered in
units consisting of a debenture in
the principal amount
of

$1,000 and a warrant to purchase a number of capital
having a market value of approximately $500 at

date of issue.

Business—The

Price

—
To be supplied by amendment.
largest company in Italy in both chemical

Pif0dT?cH01! £n<? mining. Proceeds—For
me United

construction in
plant for the manufacture of isostatic polypropylene and other
petrochemicals. Under¬
writers— Lazard Freres &
Co., Lehman Brothers and
Kuhn, Loeb & Co., all of New York.
States of

•

Oklahoma Cement Co.

Narda Ultrasonics Corp.

(6/15)

—
-

Torpie &
;

(letter of notification) 150,000 shares of com¬
Price—At par ($2 per share).
Proceeds—
For new equipment, inventory and working capital. Ad¬
dress—P. O. Box 1658, Lakeland, Fla.
Underwriter—
R. F. Campeau Co., Inc., Detroit, Mich.//://,
■„ /
;

Multi-Amp Electronic Corp.

(6/10)

^tay 1 (letter of notification)

99,500 shares of common
Price—$3 per share. Proceeds—
building; for research, development, equip-

stock (par 10 cents).
To purchase

S^«I^donSCtinery'J ft?,; and for w°rking

capital.

Business—Portable and laboratory instruments for test¬
ing etc.
Office—465 Lehigh Avenue,
Union, N. J. Un¬

stock.

Nationwide

Small

Business

Investing

Capital

outstanding obligations and for working capital. Uir- ? 5
Inc., Wash- f

'///

Air'Lines, JnbY/v Y//v; YY /;/ Y• -Y/Y//V - ~'-t•*
May 20 filed 132,944 shares of general common stock
If
(par $1) to be offered tb-hdlders of class A and class B , * *
common stock
(not including class B common held by
Ozark

general common stock for each lffine shares of class A j/bt
B common (not intruding class B shares / f-i
trustees), or voting trust certificates for r s£
class B common.
Price—$4.75 per share.
Proceeds—For

common, class
held by voting

purchase of additional flight equipment. : Address—P. O. /
Box 6007, Lambert Field, St. Louis, Mo-. Underwriters—
Newhard, Cook & Co. and Yates, Heitner & Woods, both YJ *
of St.

Address—P. O. Box 672,
To be designated.

':•/'■

YY;

i?■■■■'?.%

Products, Inc., Pacolet, A. C,
May 11 (letter of notification)-2,000 shares of 7% preferred stock. Price—At par ($50 per share). Proceeds—
'
To pay bank loans and for general corporate purposes.
■
Underwriters—A. M. Law & Co., Spartanburg, S. C.; and //>
Clark, Landstreet & Kirkpatrick, Inc., Nashville, Tenn.
*
.

Odessa, Texas. Underwriters—

i New Britain Machine Co., New Britain, Conn.
May 20 (letter of notification) 3,000 shares of common
stock (par $10) to be offered to employees. Price—At the
average price over-the-counter market, determined by
mean between bids and asks for the week ending May 23,
1959. Rights expire June 18, 1959. Proceeds—For em¬
ployees savings plan. Underwriter—None.

stock

Shipbuilding Corp. - .
83,334 shares of common stock, to be
offered in exchange for common stock of Higgins, Inc.,
at the rate of one share of New York Shipbuilding com¬
mon for each 24 shares of Higgins common.
The offer
will expire on June 30. Statement effective April 16.

r/ '

common

;
:

!''•
.

Fund, Inc.
300,000 shares of. capital stock.

Price—Mini-

purchase of shares is $2,500. Proceeds—For invest- *1/

mum

ment.

Office—404 JNorth. Roxbury

Calif.

Underwriter—Paramount

Drive, Beverly Hill*,

Mutual Fund Manage- '•

Statement effective April 14.

ment Co.

Pearce-Uible Co.

May 11 filed 555,000 shares of common stock (par $1), of
]f
which 500,000 shares are to be offered publicly, and the Jt;
remaining 55,000 shares are subject to sale under Stock *
Purchase Options granted to employees of the company. ■
Price—$3.50 per share to public. Proceeds—For acquisi- *6^
tion and development of land and construction of houses
for sale.
Office—3850 Beach Boulevard, Jacksonville, dee
Fla.
Business—Construction of single-family dwellings
for sale to home owners.
Underwriter—Pierce, Carri- ' 9?

/ :

if Northern Illinois Gas Co. (6/23)
~ V
May 27 filed $20,000,000 of first mortgage bonds due
1984. Proceeds—To retire bank loans, and for construc¬
—

Paramount Mutual

Acceptance Corp.
April 29 (letter of notification) $300,000 of 6% 10-year
subordinated debentures to be offered for subscription
by stockholders in denominations of $100, $500 and
$1,000 each. Rights will expire July 31, 1959. Price—At
par. Proceeds—For working capital.
Office—Suite 487,
795 Peachtree Street, N. E., Atlanta, Ga. Underwriter—

Underwriter

outstanding

(par $1)

Jan. 2 filed

North American

;

51,847

being offered "only to stockholders and
directors of The Refinite Corp. and will not be offered
to the general public."
Price—$3 per share. Proceeds—
To selling stockholders, The Refinite Corp. Office—8400
Santa Monica: Boulevard, Los Angeles, Calif. Underwriter—None. Statement effective May 15. *
-

filed

Nene.

filed

•/*:

California

Paddock of

March

York

tion expenditures.

Louis, Mo."

Paco

May 5 (letter of notification) 150,000 shares of common
Price—$2 per share. Proceeds—To
acquire fishing tools for leasing; and for working capital.

son,

Wulberri,

firms.

To be determined by

v'/■*'

Jacksonville, Fla.,
..' ''Y:.'
■,

Inc.,
.

Peckman Plan Fund,

competitive bidding. Probable bidders: Halsey, Stuart &
Inc.; The First Boston Corp.; Glore, Forgan & Co.;
Blyth & Co. Inc.
Bids—To be received up to 10 a.m.

Price—At

market.

common

Proceeds—For

stock (par $1)

investment.

writer-—Investors Investments Corp:,

June 23.

other & 81

and four

Inc., Pasadena, Calif.

May 19 filed 20,000 shares of

Co.

•

* '
J'

stock (par 50 cents).

;

voting tttMees) arid holcfers of voting trust-eertificates ,<3;.:
for class B common stock, on the basis of one new share

Nedow Oil Tool Co.

(CDT)

•*»

Naylor Engineering & Research Corp.' *
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For organizational ex¬
penses and first three months' operational expenses. Of¬
fice—1250 Wilshire Blvd., Los Angeles 17, Calif. Under¬
writer—Waldron & Co., San Francisco 4, Calif.

''jr.

}

ington, D. C. '

///

derwriter—None.

New

.'fir.'

derwriter—Investment Bankers of America,

Corp.
April 24 filed 500,000 shares of capital stock (par 50
cents). Price — $1 per share. Proceeds — For working
capital and investments.
Office—Hartsdale, N. Y.
Un¬

March

(6/15-19)

OrecloneT Concentrating. Corp., Virginia, Minn.
May 20 filed 200,000 shares of common stock (par 10
cents). Priee—$3 per share. Proceeds — For repayment

National Citrus Corp.

mon

Thursday, June 4, 1959

April 29 filed 20,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds—
To retire a $100,000 outstanding bank loan and the bal¬
ance will be used for general corporate purposes. Office—

Westbury, Long Island, N. Y. Underwriter
Saltzman, New York.
"

May 21 filed $3,600,000 of subordinated debentures due
/•
1974, and 360,000 shares of common stock (par 25 cents)
to be offered in units each consisting of $100 of deben-Yr
tures and 10 shares of common stock. Price—To be sup- 7 /
plied by amendment. Proceeds—For expansion, general
*
corporate purposes, and the balance for working capital. Office—Beacon Bldg:, Tulsa, Okla. Underwriter— % £
Laird & Co. Corp., Wilmington, Del.
r''Y. \ 7 Y'

sales efforts; and for
working capital. Office—79 Madison Ave., New York.
Underwriter—General Investing Corp., New York.

Union

Co., Inc., 52 Broadway,

March 30

mon

York, N. Y.

April 20

LuHoc

•

Everett Parks

Under-

y
—

Pasadena, Calif.

Pennsylvania Power,Co.
Y
Aug; 1 filed $8,000,000 of first mortgage bonds due 1909.. Y,
Proceeds—To redeem a like amount of 5% first mortgage: bonds due 1987. Underwriter—To be determined *' ;
by competitive bidding. Probable bidders: Halsey, Stuart
& Go: Inc.;„ Kidder, Peabody & Co.; White Weld & Co.; J
"J
Equitable Securities Corp., and Shields & Co. (jointly); '
LehipQrin Brothers, Eastman Dillon, Union Securities A Y*
Co.," Salomon .Bros. & Hutzler and Ladenburg, Thalmann •'li
8c Co, (joiritljr); Merrill Lynch, Pierce, Fenner & Smith ; t
and Dean Witter & Co. (jointly). Bids — Tentatively it.
had been expected to be received up to 11 a.m. (EDT) ':*■**
onYAug. 27 but company on Aug. 22 decided to defe* ; 7/
sale pending improvement in market conditions. SEC' Ue
orirFeb. 25, 1959 extended to June 16, 1959 period within ''. f
which company may consummate financing.*
Y iL
.

Northwest
S.

Defense

Minerals,

Inc.,

Keystone,

Dak.

May 4 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For exploring and recovering strategic metals and pro¬
ducing same. Underwriter—Caldwell Co., 26 Broadway,
New

York, N. Y. Offering—Expected in July.

•

Nuclear Electronics Corp. (6/4)
April 29 filed 200,060 shares of common stock

(par one
share. Proceeds—To be applied
indebtedness owed to Wheaton
Glass Co.; for payment of bank debt; for research, de¬
velopment, production and marketing; for sales pro¬
motion; and the balance for general working capital.
Office—2925 N. Broad Street, Philadelphia, Pa. Under¬

cent).
to

the

Price—$3.75
payment

per
an

writer—Charles Plohn

Co., New York.

•
^Peoples Drug Stores, Inc. (6/17)
•■
-l *
May 19 filed 121,000 shares of common stock (par $5). Ylv';
Price—To b6 supplied by amendment: Proceeds—For
ih
expansion program. Underwriters—Alex Brown & Sons, :>w\
Baltimore, Mdi; and Kidder, Peabody & Co., New York, a t

Office Buildings of America, Inc.
April 6 filed 91,809 shares of class A stock (par $1) and
10,201 shares of class B common stock (par $1) to be
offered in units of nine class A shares and one cl?isS B

shara

Price—$100

per

unit.

Proceeds—To be available

YPermachem Corp., New York

'
- \ -f'
stock j j
(par lftients) and 1,917 shares of class B common stock Y i
(par id cents). This covers the transfer of certain shares Y'-v
pursuant to option agreements. Price — At t)ver-the- .a;
counter market prices. Underwriter—None. Y1

for investment in

real estate syndicates and other real
estate. Office—9 Clinton St., Newark, N.. J. Underwriter

March.31 filed 2,041,331 shares of class A common

—None.

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock (par 35
cents.
Price—$2 per share. Proceeds—To retire bank
loans and for investment purposes. Office—513 Interna¬
tional Trade Mart, New Orleans, -La.
Underwriter —
Assets Investment Co., Inc., New Orleans, La.

*"
!Y
stock (no par)
"
being, offered for subscription by corrimon stockholders
1
of; recordYJune 2, 1959, on the basis of bne new share I
•
PhiladefphiaElectricCo.
May '7 filed 640,306 shares of common

Welders, Inc.
60,600 shares of common stock, $43,333.33
of 3%% debentures maturing on or before
May 6, 1965'
$692,000 of 0% debentures maturing on or before Dec
31, 1974 and $123,000 of 7% debentures due on or before
May 6, 1965
The company proposes to make a public
offering of 25,000 shares of common-stock at $10 pei
share.
The remaining shares and the debentures'are
subject to an exchange offer between this corporation
O. K. Rubber, Inc., and O. K. Ko-op Rubber
Welding
System, on an alternative basis. Proceeds—Of the public
offering, will be used for additional working, capital
and/or to service part of the company's debt. Office;—
Rio

None.

Grande

Statement

Ave..

Littleton^

effective April

Colo.

13.

Underwriter—

...

held; rights will expire,

on June
To xepay bank
loans and for construction program. Underwriters— Y 7
Drexel & Co:, and Morgan Stanley & Co.. both of New 'Y
York.//.
Y
♦.
• '

for each 20 shares then

O. K. Rubber

23YPrice—$45.50

Dec. 15 filed

551

per

share. Proceeds

—

....

Philip Morris Inc. (6/22)
$40,000,000 of 25-year sinking fund deben-»
turris due .1979. Price — To. be supplied by -amendment.:
Proceeds
To. reduce short-term bank loans., Under-.
June 2 filed

—

writers

—

Lehinan

both of New. York.

& Co.t
*

Philippine. Oil Development Co., Inc.
April-10 filed 221,883,614 shares of capital stock; to be .
*
offered for subscription, by holders of outstanding stockat the rate of one new share for each two -shares held.
-j'
'

Brothers: and Glore,_Forgan.
:

Volume 189

Price-—To

Number 5852..

supplied

The Commercial and Financial Chronicle

amendment.

Proceeds—For

working capital. Office—Soriano Building, Plaza
vantes, Manila (P. I.). Underwriter—None.

ated debentures
presently outstanding, in full, at par
plus accrued interest to the date of payment, and the

Cer¬

balance

in the

for

ratio of

l1/^ shares of Phillips-Van
share of
Kennedy's/stock.
/V

one

Rassco

of 1/16 of

Address—Smith Reynolds

—Rassco

•

general corporate purposes.

Corp.

Israel

Corp., New York,

"
*;

Schjeldahl

Raytheon Manufacturing Co.
May 1 filed 350,602 shares of common stock (par $5) and
100,000 shares of 5%% series (cumulative), serial pre-

March
are

ufacturing Co.).

raw

•

Polarad Electronics

Corp.

:•

:< public offering

vV'-'V—at'

(6/11)

; "

>,//-'"

.May- 1 filed; 100,000 shares of common stock
(par $1)Price—To be supplied
by/amendment.^Proceeds — For
working" capital and other corporate purposes;? Office—
43-20 34th Street, Long-Island
City, N. Y. Underwriter—
Kidder,; Peabody & Co., New. York.
.• Poly.-

jfi'/</ ■'<.

Industries, Inc.-:(6/5

•

Reichhold

common stock (par $1).
Price—Related at>the time of
offering to the then cur¬
rent price on the New York Stock
Exchange. Proceeds

lative preferred stock (par $25).
Proceeds—For working capital.

May- 4 filed 200,000 shares of common stock (par
$1),100,000 shares are to be offered for the account

Price—$25.50 per share.
Office—304 S. 18th St.,
Omaha, Neb. Underwriters—First Trust Co. of Lincoln,
Lincoln, Neb.; Wachob-Bender Corp., Omaha, Neb., and
Cruttenden, Podesta & Co., Chicago, 111.
"
•

general funds of the company; and
$10,000,000 will be applied to its
and the balance added to work¬
Office—525 North Broadway, White Plains,

ing, capital.

program

Silver Creek

N. Y. Underwriter—Blyth & Co., Inc., New York.
100,000,.shares for certain selling V • Reiter-Foster Oil
Corp.
stockholders. Price —, $7.25
per share/; Proceeds—Foxv March- 30 filed $1,500,000 of 6% convertible debentures
working capital and to reduce bank borrowings/;
due
Office;
1969, being offered for subscription by common
—12172 Montague
stockholders at* the rate of $100 principal amount of
Street,-Pacoima, Calif.-, Underwriter—
Van Alstyne, -Noel & Co.- New York.
debentures for each 300 common shares held
5/</
••/
of

the

company

of June

Precon Electronics
rights'to expire on June 18.
Price
At principal
Corp. •, (6/8-12") "
• /
- y v3;
April 6 filed 175,000 shares of common stock (par 75 ' 'amount.
Proceeds
To pay debt and for develop¬
cents). Price — $5 per share. Proceeds, --v Fort
ment-of present/properties and acquisition and
working
develop¬
capital; to reimburse the predecessor fon^certain devel¬
ment of additional oils and gas properties. Underwriter—

Emanuel Deetjen &

Sip'n Snack Shoppes, Inc., Philadelphia, Pa.
of common stock. Price—
$2 per share. Proceeds—To pay loans and for new equip¬
ment. Undei writer—Sano & Co., New York.

Co., New York.

Investing Fund of America, Inc.
St.,. New York, N. Y. /Underwriters—Charles Plohn
;Feb.'24-filed 200,000 shares of capital stock. Price—At
& Co. and Netherlands Securities
Co./.Jnc./.both of New V market. Proceeds—For investment Office—Englewood,
York, N. Y.
J '/ .//.. / ' //Vv; ../
' N. J. Underwriter—First Mutual Securities of America,

•

America, Inc.
April 17 filed 90,000 outstanding shares of GQinmon stock;
Price—Related to the current market
price on the
American Stock Exchange. Proceeds—To
selling stock¬
holders.. Office—Port
Huron, Mich. Underwriter—None.

Inc.

general

•—

expansion

$1.50

per

: Proceeds

—

For

and

working, capital.: i Office—1108
16th Street, N.W.,
Washington 6, D. C. Underwriter—
John C. Kahn Co.,
Washington, D. C.
v
Purepac Corp., New York •'/. ... j; •'
^
March 31 filed 260,000 shares of common stock
(par five
Cents). Price—$3 per share. Proceeds—To repay loans
and for general ■; corporate
purposes.
Business—Manu¬
facturers and packager of
proprietary drug items.
Un¬
derwriter
Richard Bruce & Co. Inc., 26 Broadway,
New York 4, N. Y.
•
,
—

Puritan Chemical

March

Corp.

ri-

500,000 shares of capital stock (par 10
cents.
Price—$1.25 per share. Proceeds—Fbr working
capital and general corporate purposes. Office—2 South
Broadway, Lawrence, Mass. Underwriter—Dunne & Co.,

-Offering—Expected

day./

any

•

Pyrometer Co. of America, Inc. (6/4)
April 27 filed 200,000 shares of common stock (par 50
cents). Price—$3 per share. Proceeds—For
inventory,
expansion* of present facilities, equipment,' working cap¬

ital and other general corporate
purposes. Office—Penndel, Ph. Underwriter — Arnold Malkan & Co.,

Inc., 26

Broadway, New York.

•

Radar Design Corp.,
Syracuse, N. Y. *(6/22)
May 26 filed 120,000 shares of common stock ($1 par).

Price—$3

per share. Proceeds
To liquidate notes and
new equipment and working
capital.
Underwriter—Charles Plohn & Co„ New York:
it Radinsky Investment Co.
—

mortgages, and for

June 1 filed 100,000 shares of

common

stock. Each pur¬

chaser of stock is entitled to receive one stock
purchase
warrant for each five shares of stock
acquired. The war¬
rants
will entitle the holder to
acquire one share of
common for each five shares of stock
acquired. Price—$2
per share.

Proceeds—For working capital; "Office—2000

.W.
-

•

(with an oversubscription privilege). The subscriptioi
period will be for 30 days following issuance of subscription rights:: Price—To be supplied by amendment
Proceeds—To pay off demand note, to pay other indebt¬

edness, and the balance if any will be added to workinj
capital. Underwriter — Pacific Securities Ltd., Van¬
couver/Canada.
Roosevelt-Consolidated

East

42nd

Street, New York.

Underwriter

Colfax Ave., Denver, Colo!
Underwriters—Amos C.
Sudler & Co_, and Purvis &
Co., both of Denver, Colo.
Raindor Gold Mines, Ltd.

•

Royal Dutch Petroleum Co./Shell Transport &
Trading Co.
May 27 Royal Dutch filed 794,203 shares (nominal par
value of 20 Netherlands Guilders each), and Shell Trans¬
port filed 1,191,304 ordinary shares (£ nominal value).
According to the prospectus, an offer has been made
by Royal Dutch and Shell Transport to Canadian Eagle
Oil Company Limited, for the whole of its assets and

business. Pursuant to the

offer, there would be allotted
Eagle, for distribution in kind to its share¬
holders, 3,971,012 fully paid shares of Royal Dutch and
5,956,518 fully paid ordinary shares of Shell Transport!
to Canadian

Bataafse. Petroleum Maatschappij, N.V., a company of
the Royal Dutch/Shell group of companies, which owns
about 21% of the issued share capital of Canadian Eagle,
will

waive

its

right to participate in such distribution.

Canadian Eagle shareholders owning the remaining 23,-

ordinary shares of Canadian Eagle will there¬
fore receive two Royal Dutch shares and three Shell
Transport ordinary shares in respect of every 12 shares
of Canadian Eagle held. The offer is to be voted upon
by Canadian Eagle shareholders at a meeting to be held
July 21, 1959. After the shares of Royal Dutch and Shell
Transport have been distributed to Canadian Eagle
shareholders, Canadian Eagle is to be dissolved.
826,072

•
Ryan Aeronautical Co., San Diego, Calif. (6/23)
May 26 filed 330,000 shares of common stock (no par),

of which 275,000 shares will be offered on behalf of the

Jan. 28 (letter of
notification) 290,000 shares of common
stock (par $1). Price—$1 per share. Proceeds—To

company

up ore and for road

and- camp construction Office—At
Suite 322,200 Bay St., Toronto;
Oht./Canada, and c/o T.

to the company

Arnold,. Wilson

New York

prove

Circle,

Rumsoii, N;: J. Underwriter—
!/:
?1

Sano •& Gon New York, N. Y.

and 55,000 for selling stockholders.
Price—To
be supplied by amendment. Proceeds—Amount accruing
writer—Dean

will be added to working capital. Under¬

Witter

City., "

Co., San Francisco, Calif^,

and

• St.
Joseph Light & Power Co. (6/16)
Rapid-American Corp., New York
May 18: filed $4,500,000 of first mortgage bonds due
April 13 filed $7,209,640 of 5%% convertible subordin-: ; June 1, 1989. Proceeds—To repay bank loans. Under¬
ated debentures due April
writer—To be determined by competitive bidding. Prob¬
30, 1964, being offered for
subscription by common - stockholders in the "ratio of
able bidders: Halsey, Stuart & Co. Inc.; Otis & Co., Inc.;
$100 of debentures for each 10 common shares held of
Smith, Barney & Co., Glore, Forgan & Co. and Blair &
record May
12 (with an oversubscription privilege);
Co. Inc. (jointly); Eastman Dillon, Union Securities &
rights to expire on June 5. Price—At par (flat). Pro¬
Co.; White, Weld & Co.; Equitable Securities Corp.; First
ceeds—To be applied in part to the
Boston Corp.
repurchase and re¬
Bids—Expected to be received up to 11
tirement of the
a.m.
company's 5%% convertible subordin¬
(EDT) on June 16.
-

(6/16)

Staats

Soundscriber Corp.

May 13 filed 126,254 shares of common stock to be of¬
fered for subscription by common stockholders at the
rate of one new share for each three shares held.. Price

Proceeds-^To be applied for costs in¬

—$14 per share.
*

curred

and

troduction of

incurred

new

connection

with the in¬

line of office dictating

equipment;

payment of installment notes with interest; payment of a
bank indebtedness; payment and interest on notes pay¬

able; and for general corporate purposes. Office—8^Middletown Avenue, North Haven, Conn. -Underwriter—
None.

Building Associates

May 4 filed $5,580,000 of Participations in Partnership
Interests, to be offered for sale in units. Price—$10,000
per unit.
Proceeds—For general corporate purposes.
Office—60

Oil Tool Co.

To be

Blvd., Compton, Calif. Underwriter—William R.
& Co., Los Angeles, Calif.

the 1,174,716 shares for subscription by its shareholderi
at the rate of one new share for each three shares hel<f

;

—

inventories; and for the acquisition of new production
machinery and tools. Office — 14930 South San Pedro

—None.

filed

New York.

•

Ltd., Alberta, Canada

the company and 824,000 shares for the account of cer¬
tain selling stockholders. The
company proposes to offe?

selling

Price

Petroleum

(H.C.)

100,000 shares of capital stock (no par).
supplied by amendment. Proceeds — For
research and development of new products; to increase
Price

June 26 filed 1,998,716 shares of common stock (par $1)
Of this stock, 1,174,716 shares are to be sold on behalf 01

•

UPrudential Enterprises, Inc., '
•Jan. 15 (letter of notification).
200,000 shares of common
stock (par one
cent) of which 170,000 shares are to be
sold by the company and
30,000 shares by a
stockholder.

-•

Richwell

Smith

May 20 filed

/' Pressed Metals of

Precision Corp.

filed

March 31 filed 200,000 shares

Research

41st

derwriter—Maltz, Greenwald & Co., New York.

—

—•

opment expenses; for inventories and work in
process; '*
and other general,
corporate purposes.
Office—120 E.

Co.

1,550,000 shares of common stock (par
10 cents), of which 200,000 shares are to be offered for/
the account of the company, and 1,350,000 shares for
account of selling stockholders.
Price—To be supplied"
by amendment. Proceeds—For working capital. OfficeCentral Ave. and Mechanic St., Silver Creek, N. Y. Un¬
March

and

Hotel

Aug. 19 (letter of notification) $250,000 of 6% convertible
debentures due Sept. 15, 1963 to be offered for subscrip¬
tion by common stockholders on a pro rata basis. Price—
At par. Proceeds—For working capital.
Office — 3171
North Sheridan Rd., Chicago 14, 111. Underwriter—None.

it is expected that about

of .which

Sheridan-Belmont

—To bet added to the

construction

new

if Securities Acceptance Corp.

(6/16)

May 22 filed 400,000 shares of

one

May 25 (letter of notification) 10,000 shares of 5% cumu¬

is planned.

Chemicals, Inc.

April 1, 1959. Price—$10 per share. Proceedsr—For *
increased plant facilities, for purchase of equipment,;
working capital and other corporate purposes. Office—
202 South Division St., Northfield, Minn.
Underwriter
—Craig-Hallum, Inc., Minneapolis, Minn.

materials, and the sale of the: resultant prodpet. Office—
of option. Price—$3 per share. Proceeds—To Hazard E.
Hicksville, Long Island,/ N,: YiljLJnderwriter^Filor; Bul^ /
Reeves, the selling stockholder. Underwriter—None. No

lard & Smith, New York
City.

of common stock, which
present stockholder!
share for each eight shares held

;

(G. T.) Co.
42,500 shares

filed

be offered and sold first to

at the rate
-

(par $50). These shares were or may be
issued as a result" of the
merger, of Machlett Labora¬
tories,-Inc./into Raytheon Co. (formerly Raytheon Man¬

Reeves Soundcraft Corp.,
Danbury, Conn.
" April 30 fRed 22,000 shares of common stock
(par five
•
cents) to :be sold to Lewis Cowan Merrill upon exercise

Business—Primarily engaged

coloring of therfnbplastic

City and New York.

"best effort!'

•'/ ;•/*■/ ferred stock

Plastic Minerals &
Polymers, Inc. (6/12)**'
May 11" filed 143,750 shares .of common- stock (par 10
cents).. Price—- Expected .at $4 per share.
Proceeds
—For construction of a
plant in Rhode Island and for
in the compounding and

Financial

basis.

Airport, Winston-Salem, N. C.y
; *■{

Underwriter—

purposes.
••

$500 and $1,000. Price—At par. Proceeds—For work¬
ing capital and general corporate purposes. Underwrite!

a« of May 4, 1959.*
share/ Proceeds—For working capital:

Underwriter—None.V"

share for each share lield
per

corporate
.

•

$1).
For
further acquisitions; to repay two bank loans; for ad¬
vance
to a subsidiary; to repay the remaining unpaid
balance of the purchase price of the company's new of¬
fice building; and for other corporate purposes. Office-^
1400 Fifth Ave., San Diego, Calif. Underwriters—White,
Weld & Co., New York; and J. A. Hogle & Co., Salt Lake

June 26 filed $i,uuu,uuu ol 15-year 6% series A
sinkini
fund debentures due 1973, to be offered in denomination*

Heusen stock
•'
'\
•*'

72,700 shares of common
(par $1) to be offered to stockholders at the rate

Price—$3.75

general

Ii-

Piedmont Aviation, Inc.
May 6 (letter of notification)
stock

for

San Diego Imperial Corp.
(6/15-19)
May 18 filed 1,400,000 shares of common stock (par
Price—To be supplied by amendment. Proceeds —

None.

Phillips-Van Heusen Corp. "*
April 21 filed 69,210 shares of common
stock, to be of¬
fered in exchange for common stock of
Kennedy's, Inc.,

(2555)

•

Spartans Industries, Inc. (6/8-12)
i
May 12 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes. Business—A major producer
and distributor of a diversified line of popular price,
basic style apparel for men, women and children. Office
—1 West 34th St., New York 1, N. Y. Underwriters —
Shearson, Hammill & Co., New York; and J. C. Bradford
& Co., Nashville, Tenn.
•
r
Spiegel, Inc. (6/5)
May 8 filed $15,417,500 of convertible subordinated de¬
1, 1984, to be offered for subscription
by common stockholders of record on or about June 5,
1059, on the basis of $100 principal amount of debentures
for each 12 shares held; rights to expire on June 22.
Price—To be supplied by amendment.
Proceeds—To be
added to the general funds of the company to be avail¬
bentures due June

able

principally to finance its increasing accounts re¬
& Co., New York.

ceivable. Underwriter—Wertheim

Standard Electric Co., Inc.
March 31
mon

(lertter of notification) 10,000 shares of com¬
Price—$27.50 per share. Proceeds

stock (par $25).

—To purchase equipment, erect and

equip

semi-firer

proof building and for working capital.
Office —3016
Austin Highway, San Antonio, Texas.
Underwriter —
Bache & Co., San Antonio, Texas.
•

Sterling Television Co., Inc. (6/9)
(letter of notification) 200,000 shares of Class
A stock (par 25 cents). Price—$1 per share. - Proceeds—:
For general corporate purposes, and to acquire television
film series for distribution. Office—6 East 39th St., New
March 31

York

16, N. Y. Underwriter—R. A. Holman & Co., Inc.,

New York 5, N. Y.

Suffolk

Gas

Corp.

May 8 (letter of notification) 6,000 shares of common
stock (par $2.50) to be offered for subscription by stock¬
holders; unsubscribed shares to public. Price—To stock¬
holders, $6.75 per share. Office—151 N. Main Street,
Suffolk, Va. Underwriter—Strader & Co., Inc., Lynch¬
burg, Va.

;

Sunray Mid-Continent Oil Co.

May 19 filed 525,000 shares of common stock to be of¬
fered in exchange for common stock of Suntide Refining
Co. in the ratio of one share of Sunray for each three
shares of Suntide. The offer is conditional upon the de¬

posit of sufficient shares of Suntide so that Sunray

Continued

will

page

The Commercial and Financial Chronicle

(2556)

Continued from page
90%

least

own

outstanding

the

Underwriter—None.

Suntide

shares.

Lincoln, Neb.

Office — 79 Ben Yehuda St., Tel Aviv, Israel.
Underwriter—American Israel Basic Economy Co., New
York, N. Y.
9

Superior Window Co.

Transcon

Petroleum

Development Corp.,

Mangum, Okla.
(letter of notification) 300,000 shares of com¬
mon
stock. Price—At par ($1 per snare). Proceeds—
For development of oil properties. Underwriter—First
March 20

Investment

vertible preferred stock (par $8) and 125,000 shares of
common stock
(par 10 cents). Price—For pre¬

*ilass A

ferred stock, $10 per share; and for common stock, $4
*>er share. Proceeds—To purchase the assets of Superior
Trucking Co.; for repayment of notes; and for general
•iorpbrate purposes. Office—625 E. 10th Ave., Hialeah,
i?la.
Underwriter—Cruttenden, Podesta & Co., Chicago

Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock (par $1).
Priee — $10.75 per share.
Proceeds —For investment.
Office—South Main Street, Greenville, S. C.
Under¬
writer—To be supplied by amendment.
;
;
.

Trusteed Funds, Inc.,

Boston, Mass.
May 21 filed, (by amendment) an additional 600 Com¬
monwealth Fund Indenture

of Trust Periodic Payment

Plans A and 600 such Plans B.

etnd New York.

ceeds—For investment.T

Tang Industries, Inc.
May 25 filed 110,000 shares of common stock

Price—At market.

A*..•/;; '■*,,/t

Pro¬

\// V;

Francisco, Calif.

^Technical Operations Inc. (7/6)
May 29 filed 75,000 shares of common stock. Price—To
i>e supplied by amendment. Proceeds—For construction
Urogram, for investment in subsidiaries, for working
•capital and other corporate purposes. Office — South
Ave., Burlington, Mass. Underwriter.—Bear, Stearns &
Co., New York.

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5)
Price — $10 per share. Proceeds — For acquisition of
operating properties, real and/or personal, including
office furniture, fixtures, equipment and office space, by
lease or purchase. Office — Wilmington, Del. Under
writer—None.
Myrl L. McKee of Portland, Ore., 1#

Technology, Inc.
May 15 filed 325,000 shares of common stock (par 10
cents).
Price—$4 per share.
Proceeds—To pay off in
full the subscription
of Microwave Electronic Tube
Co., Inc. stock, represented by notes, to pay for im¬
provements upon the plant leased to Microwave, and
for working capital. / Office—1500 Massachusetts Ave¬
nue, N. W., Washington, D. C.
Underwriter — E. L.
Wolf Associates, Inc., Washington, District of Columbia.
Telectro Industries Corp. (6/8-12)
May 6 filed 200,000 shares of common stock * (par 10
cents). Price—$3 per share. Proceeds—For additional
machinery and equipment; to retire outstanding balances
a

V-loan to

bank and to

commercial credit

com¬

pany; and the balance will be added to working capital
end used for general corporate purposes.
Office—35-16
37th

St., Long Island City, N. Y.
p. Blauner & Co., Inc., New York.
•

Telefilex

Ltd.

Underwriter—Milton

67,000 shares of common stock (no par),
of which 42,000 shares are to be sold for the account of
the company and 25,000 shares for Teleflex Products
Ltd. Price—$20.50 per share. Proceeds—For additional
equipment and working capital. Office—461 King St.,
W., Toronto, Canada. Underwriter—Drexel & Co., New
York.

Telemeter

Magnetics, Inc. (6/22)
150,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—To be applied to the reduction of short-term bank
May 26 filed

loans incurred for working Capital purposes as a con¬
sequence of the expanding business of the company.
Business—The company is engaged principally in de¬

sign, development, manufacture and sale of digital data
handling equipment and components for the computer
end

data. processing industry.
Underwriters—Lehman
Brothers; Hallgarten & Co. and Hemphill, Noyes & Co.,
^11 of New York. Offering-—Expected sometime in June.
'

Ten Keys, Inc., Providence* R. I.
April 28 filed 973,000 shares of capital stock (par $1).
Price—$5.40 per shard. Proceeds—For investment. Office
—512 Hospital Trust
Bldg., Providence, R. I. Distributor
—E. R. Davenport &
Co., Providence, R. I.

it Terminal Tower Co., Cleveland, Ohio
May 29 filed $3,300,000 of 6% sinking fund debentures
■due July 1, 1969, with common stock
purchase warrants
for the purchase of the

$1,000 of debentures. Price

©mount.

Proceeds

—

For

working

capital.

Office

—

809

Underwriter—Pacific

Calif.

G. Street,

Chula Vista,
Co., San

Securities

Coast

—

United

Gas

Improvement Co.. (6/16)
May 12 filed $10,000,000 of first mortgage bonds due
June 1, 1984. Proceeds—To be used to reimburse, in part,
the treasury of the company for property additions and
improvements and to meet, in part, the cost of the con¬
tinuing construction program, including the retirement
.

of bank loans incurred in connection with such program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld

Co.; Merrill Lynch, Pierce, Fenner & Smith and East¬
Dillon, Union Securities & Co. (jointly); The First
Boston Corp.; Kuhn, Loeb & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.; Drexel & Co. and
Eastman Dillon, Union Securities & Co. Bids—Expected
to be received up to 11 a.m. (EDT) on June 16 at 1401
Arch St., Philadelphia 5, Pa.

man

United Illuminating Co. of New Haven
May 7 filed 350,501 shares of common stock (no par) be¬
ing offered for subscription by common stockholders on
the basis of

one new share for each eight shares held
May 26, 1959; rights to expire on June 18.
Price—$26.50 per share. Proceeds—To finance in part
the company's 1960-1961 construction program, including
the payment of current bank loans incurred in connec¬
tion with this program. Underwriter—None.

record

United Tourist Enterprises, Inc.
Jan. 28 filed 4,500,000 shares of class A common stock

(par 50 cents).
Price—$2 per share.
Proceeds—For
development and construction of a "Western. Village"
and for construction of a Grand Estes Hotel and

Con¬

vention Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located in Larimer County, Colo.

Office

—

330 South 39th

Street* Boulder, Colo. Under¬
Littleton, Colo.

writer—Mid-West Securities Corp.,

UnitedState* QI«bi & Chemical

Office—Tiffin, Ohio. Underwriter—None.
Uranium Corp, of America, Portland, Ora..
April 30,1957 filed 1,250,000shares of common stock (par
16 cents). Price—To be suoolied by amendment (ex¬
pected to be $1 per share). Proceeds—For exploration
purposes. Underwriter—To be named by amendment.
Graham Albert Griswold of Portland, Ore., is Pres¬

principal
Terminal

used

(to reduce long-term debt; improvement and

expan¬

Building, Cleveland, Ohio. Underwriter—Fulton
Tleid & Co.,
Cleveland, Ohio.

sion of Ogden plant and for addition to working capital.
Office—379-17th St., Ogden, Utah. Underwriter—Schwa-

Texfel Petroleum Corp.
March 19 filed 550,000 shares of common stock
(par $1).
.Price—To be supplied
by amendment. Proceeds—For
repayment of the company's 5% notes held by an Amer-

bacher &

%Ican;i bank, and the balance will be added to its

—For

be used in

connection with

general

its various

operations, and for general corporate purposes, includ¬
ing payment of purchase obligations on certain
prop*rties, and for the purchase of warehouse inventories.
•Office—Republic National Bank Bldg., Dallas, Texas
Underwriters—Bacne & Co. and Allen &
Co., both of

TJew York.

Thriftimart, Inc. (6/15-19)
May 18 filed $8,000,000 of convertible subordinated

de¬

bentures due 1980. Price—To be
supplied by amendment.

^Proceeds— For expansion

program. Office — 1489 W
Washington Blvd., Los Angeles, Calif. Underwriters—
Reynolds & Co., Inc., New York; and
Lester, Ryons &
Co., Los Angeles, Calif
'
.

■it Tip Top Products Co.
May 29 filed $850,000 of 6% first
mortgage sinking fund

bonds,

series

common

A (with warrants for 17,000 shares of class

stock), and 100,000 shares

(par $2).i |!rjlc^$l,4;52 per. share;-Pro¬
inventory and equipment and : for working

capital. Office—54 E. MalriSt./NorWich, N. Y.

Under¬

writer—S. D. Lunt &

•

Co.,^Buffalo, N/ Y.'/>

.■>.

|:£

•

Virginia Electric & Power-. Co... •>>.;> ? v.
April 28 filed 710,000 shares..of. common stock* (par $8);
being offered for subscription by common? stockholders
on the basis of- one new riiare*for each 20 shares held of
record June 2,1959- (withr air^versubscription- privilege);;
rights to expire on or abouL June* 18.- Prices per share i£
$33. Proceeds—For construction program1•>. UnderwriterMerrill Lynch, Pierce, Fenner & Smith;. Inc.

Co., San Francisco, Calif.

Utah Minerals Co.

April 11
mon

Vocaline Co. of America,

Inc.

(6/15-19)
May 19 filed 210,000 shares of common stock (par $1.50 )V
of which 180,000 shares are for the account of the* com¬
pany and 30,000- shares for selling stockholders.. • Price—
To be supplied by amendment.
Proceeds* -—
? retire
notes, to expand facilities and for working, capital and general corporate purposes. f Underwriter — George,
O'Neill & Co., Inc., New York.
V. *.
■ :
;/
: 4
it Voss Oil Co. (6/16)
-'V
-h
May 27 filed 1,231,779 shares of class A common stock,
of which 231,779 shares will be issued to creditors. Price
—$1 per share. Proceeds—To be used for a waterflood

and for working capital and other corporate
Office—211 South Seneca St., Newcastle, Wyo.
Underwriter—Hill, Darlington & Go;, New York.

purposes.

Vulcan Materials

Co., Mountain Brook, Ala.

;./

May 7 filed 252,526 shares of common stock, of which
142,526 shares represent the balance Of 250,000 shares
issuable upon the exercise of options granted key em¬
ployees under the company's Employees Stock Option
Plan. The remaining 110,000 shares are to be issued to
stockholders of Greystone Granite Quarries, Inc., and
Pioneer Quarries Co., both. North Carolina corporations,
and to certain other parties in exchange for all the out¬
standing capital stock of Greystone and Pioneer arid
certain real and personal properties operated under lease
by Pioneer.
;■>
1
Wade Drug Corp., Shreveport, La.
April 28. filed 157,250 shares of class B common stock
to be sold privately to retail druggists through James D.

Wade, Jr., company's principal officer and stockholder,
who will receive a commission of $1.50 per share. Pri^e
—At par ($10 per share). Proceeds—To purchase addi¬
tional machinery and equipment; research and experi¬
mentation; for initial contracts; and purchase of addi¬
tional companies.
Underwriter—None.
/
•

Walter

(Jim)

Corp.

(6/16)

May 19 filed 150,000 shares of common stock (par 16%
cents) together with $1,250,000 of 9% subordinated un¬
secured bonds, due Dec. 31, 2000. Price—To be supplied
by amendment. Proceeds—For general corporate pur¬

Office—1500 North Dale Mabry Highway, Tampa,

poses.

Underwriter—Alex. Brpwn &:Sons, Baltimore, Md.

Fla.

Wellington Electronics, Inc. (6/15-19)
May 6 filed 240,000 shares of -common stock, (par 75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank note; to complete tho automation of the etched

production plant at Englewood,:.N. J.; for manu¬

facture of machines to be leased, to capacitor

manufac¬

turers; /and for working capitals Office — Englewood,
N. J. Underwriter—Charles Plohn & Co., New-York.

^ Wells Industries Corp.;:

;

May 14 (letter of notification) 66,600 shares of common
stock (par 50 cents) to be offered for subscription by
stockholders

the basis of

one new

share for each five

shares held. Price—$3 per share. Proceeds—To develop

place lightweight gasoline driven golf carts and
Office — 6880 Troost Blvd., North
Hollywrood, Calif. Underwriter—None.
two

(letter of notification) 900,000 shares of

stock. Price—At par (10 cents per share).

com¬

Proceeii

miniiig expenses. Office—305 Main St., Park City,
tTtah. Underwriter—Walter Sondrup & Co., Salt Lake
City, Utah.
Utah Oil Co. of New York, Inc.
May 6 (letter of notification) 300,000 shares of capita)
stock. Price
At par ($1 per share). Proceeds1 — For
—

development of oil and gas lands.

Office—574 Jefferson

it Wesco Financial Corp. (6/24)
June 1 filed 387,300 outstanding shares of common stock.
Price—To be supplied by amendment. Proceeds — To
selling stockholders. Business—Savings and loan holding
company. Office—315 East Colorado St., Pasadena, Calif.
Underwriters—Goldman, Sachs & Co.,, New York; and
William Blair & Co., Chicago, 111.

it Western California Telephone Co.
June

filed 44,729 shares of common stock, to be

of¬
stockholders of record June 17,
1959, at the rate of one new share for each three common,
and one new share for each five shares of preferred stock
held on that date. Price—$17.50 per share. ProceedsTogether with other funds, will be applied to the repay¬
ment of borrowings for construction aiid/or for addi¬
tional construction in 1959. Office—15900 San Jose-Los
1

fered for subscription by

Ave., Rochester 11, N, Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.

stock

ceeds—For

for working capital.

ident.

Tower

cunds and will

•^•Victory Markets, Inc;...
/
(letter of notification) 20,000 shares of class A

May 25

foil

Corp*

Nov. 26 filed 708,750 outstanding shares of common stock.
Price—At market. Proceeds —- To selling stockholders;

of the

100%

acquisition

Raceway

program,

President.

Utah Concrete Pipe Co.
April 27 (letter of notification) 41,300 shares of common
stock (par $1). Price—$7.25 per share. Proceeds—To be

company's common stock at the
price of $30 per shares and at the rate of 10 shares for

<?ach

May 6 (letter of notification) 100,000 shares of common
stock (no par). Price — $3 per share. Proceeds — For

(6/4)

May 6 filed

Victoria

May 25 filed

in Canadian funds).

Tyce Engineering Corp.

(par 10
Price—$3 per share. Proceeds—To purchase ma¬
chinery and equipment; for research and development;
for certain expenses and for working capital.
Office—
49 Jones Road, Waltham, Mass.
Underwriter — David
Barnes & Co., Inc., New York.
/

cents.

M Street, N. W.,

common

Planning Co., Washington, D. C.

(6/15)

May 15 filed 50,000 shares of 70-cent cumulative con¬

Office—1832
Washington,%D. C.;Underwriter^-None.

Proceeds—For investment,; etc.

~ ~ ^
•
'
4
1,000,000 shares of common stock (par $2
Price^$4:50 per share. Proceeds—.
To construct and operate a racing plant; and for work¬
ing capital and other corporate purposes.. Office—Notre
Dame Avenue at King Street, Winnipeg, Canada. Under¬
writer—G. Everett Parks & Co^ Inc., New York. Offer-?
ing—Expected in about two months.
V

mortgage debt of the company, to pay off shortborrowings, and for working capital. Office—

March 25 filed

<*ram.

Thursday, June 4, 1950

contucts.

Price — For stock, $10 per share; for bonds, at
100% of principal amount. Proceeds—To retire the pres¬

term bank

Super-Sol Ltd.
■ r"
"
;
V
250,000 shares of common stock. Price—
par (19,800 Israeli pounds—equivalent to $11 per
ohare in U. S. funds), payable up to 90% in State of
Israel Independence Issue and Development Issue Bonds,
and the balance in cash. Proceeds—For expansion pro-

ent

stock.

1515 Cuming St., Omaha, Neb. Underwriters — J. Cliff
Rahel & Co., Omaha, Neb.; and The First Trust Co. of

;

of class A common

Gatos

Utility Appliance Corp., Los Angeles, Calif.
April 9 (letter of notification) 50,000 shares of common
stock (par $1).
Price—$5.75 per share,
Proceeds—To
selling stockholders. Office—4851 South Alameda Street,
Los Angeles 53, Calif. Underwriter — Dempsey-Tegeler
& Co., Los Angeles, Calif.

March 5 filed 100,000 shares of common stock (par $10)
and 40,000 shares of preferred stock (par $25). Price —
At par. Proceeds—For construction and equipment of

Variable Annuity Life Insurance Co. of America

it White-Rogers Co.
May 28 filed $1,000,000 of convertible subordinated de¬
bentures due July 1, 1979. Price — To be supplied by
amendment. Proceeds—To pay for part of the cost of

April 21 filed $4,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
.contracts and no less than $1,500 for single premium

Ro,ad, Los Gatos, Calif.

Underwriter—None.

Western Wood Fiber Co.

company's plant and for working capital. Office—300
Montgomery St., San Francisco, Calif. Underwriter—
None.

Volume

189

Number 5852

.-.

The Commercial and Financial Chronicle

(2557)

constructing
Mo.

•

and: equipping: a* new

Buckingham Transportation, Inc.
May 4 it was reported that the company is seeking
early ICC approval for the issuance of 250,000 shares of

building in Affton,

Office—1209 Cass

Avje., St. Louis, Mo. Underwriters—Scherek, Richter Co.,£ind Semple, Jacobs & Co., Inc.,.
both of St.
-

'Louis, Mo.^r '

class A

•'.•

Will 4?oss,

Inc.; (6/9)\

Oct. 27 filed

$500,000 of debentures due 1991 (non In¬
and 800 shares of common stock (pai
$25) to be offered to members of this club and Of
Concord Ltd.: Price—$375 per common share and $1,000
terest bearing)

debenture. /Proceeds— To

develop

property

Halsey, Stuart & Conine.; Morgan Stanley
Corp. (jointly); White, Weld
& Co. and Paine,
Webber, Jackson & Curtis (jointly).
Dilbert Properties
(7/6-10)May 15 it was announced that this company plans an
offering of $4,506,500 of convertible debentures, together
with

Offering—Expected late August

(jointly).

early Sep¬

First

National

For

—

Life

Insurance

Gas

Corp.
May 21 it was announced that the company contemplates
the issuance of 30,000 shares of preferred stock
(par
$100). Proceeds — To pay construction costs/ Under¬
writers—May be White, Weld & Co., New York; and
Sterne, Agee & Leach, Birmingham, Ala.
OfferingExpected late August or early September,
•

Bank of Commerce, Washington, D. C.
of the Bank approved the

Feb. 26 stockholders

sale of

2,000 shares of capital stock (par $100) to holders of
record May 29, 1959, on the basis of one new share for
each three shares held; rights to expire on June 30.
Price—$150 per share.
Proceeds—To increase capital
and surplus.
.

Bank of Montreal

announced Bank is offering to its stock¬
holders of record April 17, 1959 the right to subscribe
on or before July 10, 1959 for 675,000 additional shares
of capital stock on the basis of one nejfcv share for each
eight shares held. Price—$32 per share, payable in 10
monthly installments from July 10, 1959 to April 8,
1960.
Subscription Agent—Royal Trust Co., Montreal,

May 1, it

Canada.

was

■

writer—Blair
•

Co.,

Inc.,

Georgia Power Co.

June

was

announced

that

the

company

plans the

New

York.

Dec. 10 it was announced that the company
and sell

plans to issue
$18,000,000 of 30-year first mortgage bonds. Pro¬

ceeds—For

construction

program.

Underwriter—To

determined

;

by competitive bidding. Probable bidders
Ralsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Peaoody & Co. and Shields & Co. (jointly); Lehman Broth¬
ers; The First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Registration—Planned for Aug. 10.
Bids—Expected to
be received

Sept. 17.

June

was

that

reported

Regulation "A" filing plans

the

company

through

offering of 50,000 shares
share. Underwriter—
Myron A. Lomasney & Co.Vk*New York. Registration—

stock.

common

Price

—

per

June 12.

was

announced

(7/14)

that the company is contem¬

plating the sale of $8,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Go. Inc.; White,
Wold & Co.; Kidder, Peabody & Co.; Salomon Bros. &
Rutzler and Merrill Lynch, Pierce, Fenner & Smith Inc.
(jointly); Lehman Brothers and Blair & Co., Inc., (joint¬
ly. Bids—Expected to be received on July 14.
Kansas
Dec. 29 it

City Power & Light Co.

reported that the company plans to issue
and sell $20,000,000 of first mortgage bonds. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,

Co., Inc.

(jointly);

Corp. and Blyth &
Securities Corp.; White,

Equitable

Weld & Co. and Shields & Co.

(jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly).
J,
Leeds

Travelwear

May 19 it

closs, Parker & Redpath, Washington, D. C. and New
'
AJ ll2IilH
it Mallinckrodt Chemical Works
,

York.

June 2 it

was

issuance

announced that company contemplates the
$6,000,000 convertible debentures. Office—
Second & Mallinckrodt Sts., St. Louis, Mo. Underwriter
—Newhard, Cook & Co., St. Louis, Mo.

June
about

was

announced

that

the

City plans to offer

$20,000,000 of debentures. Proceeds—To be used

for various public works projects. Underwriter—To be
determined by competitive bidding. Probable bidders:
Lehman

Brothers, White, Weld & Co., Eastman Dillon,

Union Securities & Co. and Blyth & Co., Inc. (jointly);
Shields & Co., Halsey, Stuart & Co. Inc., Savard & Hart
to be received

(jointly). Bids—Expected

June 30.

—Expected about June 10. Offering—Expected sometime

Expected in August

Northern States Power Co. (Minn.)
March 31 it was reported that the company has revised

British Industries Corp.
was

announced sale of 75,000 shares of

com¬

stock is planned, of which half will be offered for
the account of the company, and the remainder for the

account of

Deetjen
"June

15.'

a selling stockholder. Underwriter—Emanuel,
& Co., New York. Registration—Expected on
•

was

share.

per

Simmons

(7/15)

that

announced

300,000 shares of

Office—Mineola,

the

company
stock.

common

New

York.

V V;*

v/.

plans the
Price—$1

Underwriter—

Co., New York. Registration

about June 10.

Expected

—

v..j

★ Northrop Corporation
June 1 it

(7/7)
' *
•",*
reported that company is planning to sell
convertible debentures. Under¬

was

$10,000,000 subordinated
writers

William R. Staats &

—

Co., Los Angeles, Calif.';
Co., Inc., New York. Registration—Expected

and Blyth &

about 15.

Pan

its

September.

financing plans, and is considering the offering and
$10,000,000 of new preferred stock. Proceeds—To
be used to repay bank loans and for construction pro¬
gram.
Underwriter—To be determined by competitive
bidding: Blyth & Co., Inc. and The First Boston Corp.
(jointly); Lehman Brothers and Riter & Co. (jointly);

sale of

equipment, etc. Under¬
May be Lehman Brothers and Hornblower &
Weeks, both of New York.
Y
"
—

Feb. 10 it
the

sale

Probable

$15,000,000

—

(8/4)

announced that the company is

was

derwriter

first

To be determined

bidders:

planning

mortgage bonds.
Un¬
by competitive bidding.

Halsey, Stuart & Co. Inc.; Equitable

Securities Corp.; Kidder, Peabody &
Co.; Eastman Dillon,
Union Securities &
Co., Merrill Lnych, Pierce, Fennel
& Smith Inc. and
White, Weld & Co. (jointly); The First

Boston

Corp.; Harriman Ripley & Co. Inc. and Blyth &
Co., Inc. (jointly). Bids—Expected to be received on
Aug. 4.
Public Service Co. of New
Hampshire
was stated in the company's annual
that it plans the raising of

April 22 it

report

$13,250,000 from outside
partially from shortterm obligations but
principally from permanent financ¬
ing, the amount and type of which has not as yet been

sources.

This

new

money

will

Proceeds—To

come

meet

construction

require¬

Puget Sound Power & Light Co.
May 15, Frank McLaughlin, President, announced
pany plans to issue and sell first
in the year. Underwriter—To be

com¬

mortgage bonds later
determined

by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.

and Lehman Brothers
(jointly); Merrill Lynch,
Pierce, Fenner & Smith, Inc.; Stone & Webster Security
Corp.; The First Boston Corp. and Smith, Barney & Co.
(jointly).
•

Reheis Co.,

Inc.

May 19 it

was announced that this company plans some
additional equity financing. Office —
Berkeley Heights,
N. J.
Underwriter—Aetna Securities Corp., New York.

Registration—Expected about June 18.
Seaboard
Bids

Air

Line

Ry.

(6/4)

to be

received by the company on June 4 fojp
the purchase from it of about
$4,470,000 of equipment
trust certificates.
Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler.
are

Southern
Bids

will

Pacific

Co.

received

(6/24)

by the

company

June 24 for

the purchase from it of

$6,000,000 of 15-year equipment
trust certificates maturing annually from June
1, 1960
to 1974.
Probable bidders: Halsey, Stuart & Co. Inc.;
Speedry Chemical Products Co. Inc.
May 15 it was announced that the company plans an
offering of 208,666 share# of common stock. Underwriter
—S. D. Fuller & Co., New York.
Offering—Expected
during the second or third week in July.
• Taft
Broadcasting Co., Cincinnati, Ohio
(
May 26 it was reported that the company plans a regis¬
tered secondary offering of about 500,000 shares of com¬
mon

stock.

York.

it Montreal, Canada (6/30)

during July.

May 12 it

Salomon Bros. & Hutzler.

Corp.

announced that company plans some ad¬
ditional common stock financing. Underwriter—Auchinwas

June 2 it was reported that company plans some financ¬
ing. Business—Distributor of electronic parts. Offering-

mon

issuance

was

To be used for expansion program and working capital.
& Co., New York. Registration

»•

June

ments for 1959.

it Newark Electric Co. of Chicago

•

it North Hills Electric Co.

determined.

it Hoffman Laboratories, Hillsdale, N. J.

issuance of 425,000 shares of common stock. Proceeds—

Underwriter—Simmons

(jointly); The First Boston Corp., Blyth &
Co., Inc. and Kuhn, Loeb & Co. (jointly);
Wliite, Weld
& Co. and Glore,
Forgan & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Smith Inc. Bids—Expected to be re¬
ceived on July 22.
•
i
J

Pennsylvania Electric Co.

(9/17)

and Salomon Bros. & Hutzler

it Big Apple Supermarkets, Inc.

Riter & Co.

Co.

May 12 it was reported that the company plans early
registration of-about 75,000 shares of common stock (par
$4). Proceeds—To increase capital and surplus. Under¬

Stuart & Co. Inc.; The First Boston

Alabama

bidding.

writers

Feb. 10 it

tember.

common

25,300,000 shares from 20,300,major expansion program.
Underwriter—White, Weld & Co., New York.
Proceeds

Jersey Central Power & Light Co.

Alabama Gas Corp.
May 21 it was announced that the company plans to
issue $4,000,000 of first mortgage bonds.
Proceeds—To
pay construction costs. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art &f Co." .Inc.; White, Weld & Co., Stone & Webster
Securities Corp. and Kidder, Peabody & Co. (jointly);
Salomon Bros. & Hutzler and Equitable Securities Corp.

El Paso Natural Gas Co.

Expected

ective

stockholder^

common

share for each 20 shares held*
repay bank loans and for construction
new

Underwriter—To be determined by competi¬
Probable bidders: Lehman Brothers and

program.

tive

subscription by

one

—

000 shares.

Of these

writer—None.

Proceeds

and the common stock to

.»

the basis of

American World Airways, Inc.
May 4 it was announced that the stockholders would vote
on May 26 to authorize the
company to offer up to $50,«
000,000 of convertible debentures.
Stockholders would
have pre-emptive rights to subscribe
for these securi¬
ties. Proceeds—For purchase of

•

Wyoming Corp.

Co.; $325,000 for capitalization of a fire insur¬
$500,000 for capitalization of a title insur¬
ance company; $500,000 for additional capital contribution to Great Plains Development Co.; and $300,000 as
an additional capital contribution to Great Plains Mort¬
gage Co.VOffice—319 E. "A" St., Casper, Wyo.
Under¬

number

Stockholders voted April 28 to increase the authorized
preferred stock to 1,000,000 shares from 472,229 shares,

company;

undetermined

stock, to be offered in units. Underwriter—S. D. Fuller
& Co., New York.

—$500 per unit. Proceeds—For advances to Nautilus, a
subsidiary, for equipment and working capital; also for
working capital of parent and molds and dies for new
accessories. Business—To design and sell marine products and boating accessories. Office—441 Lexington Ave.,
New York, N. Y. Underwriter—B. Fermckohl & Co., New
'York, N. Y.
;YY».
-

ance

stock for

common
on

(7/22)

Co.

& Co. and The First Boston

units of $500 of debentures and 50 shares of stock. Price

Insurance

Gas

able bidders:

Worthington Products, Inc. (6/8-15)
May 8 {letter of notification) $150,000 of 7% convertible
subordinated debentures due May 15, 1964 and 15,000
shares of common stock (par 25 cents) to be offered in

Natural

Proceeds—For investments, improvements, etc.
Under¬
writer—To be determined by competitive bidding; Prob¬

(Minn.)

was

reported that the company also is con¬
offering about 714,000 additional shares-of

sidering

19, James Comerford, President, announced that
company plans later in year to issue and sell $20,000,000
of debenture bonds, if-market conditions are favorable.

and

1,199,307 are subject to partially completed subscriptions at $2, $3.33 and $4 per share; and the/addi¬
tional 250,000 shares are to be offered initially to shareholders of record Nov. 1, 1958, in the ratio of one new
share for each 2.33 shares held on that date. Price—$4
per share. Proceeds—$300,000 will be used for payments
on contract to purchase shares of International Fidelity

Northern States Power Co*
March 31 it

Consolidated

Underwriter—None.

Nov. 17 filed 1,449,307 shares of common stock.

Underwriter—Cruttenden, PodesOffering—Expected towards the

May

Worcester Gas Light Co. (6/18)
May 8 filed $5,000,000 of first mortgage sinking fund
bonds, series C, due June 1, 1979. Proceeds—To be ap¬
plied to the cost of'the company's construction program,
including $4,350,000 of advances for construction pur¬
poses by Worcester's parent, New England Gas & Elec¬
tric Association.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blair & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Coffin & Burr, Inc. and
Estabrook & Co. (jointly). Bids—To be received up to
11:30 ajn. (EDT) on June 18 at 10 Temple St., Cam¬
bridge, Mass.

stock.

Lynch, Pierce, Fenner & Smith, Inc.; Harrimao "
Ripley & Co, Inc., and Eastman Dillon, Union Securities
& Co. (jointly);
Kuhn, Loeb & Co.; Smith, Barney & Co.

Central& Southwest Corp.
-•
~
V
May 19 it was announced that the company in view of
generally favorable market conditions, is now consider¬
ing the sale of 350,000 or 400,000 shares of common
stock.
Offering—Expected sometime this Fall. Under¬
writers— To be determined by
competitive bidding;
Probable bidders: Blyth & Co., Inc. and Harriman
Rip¬
ley & Co., Inc. (jointly); Lehman Brothers and Lazard
Freres & Co.
(jointly); The First Boston Corp. and
Merrill Lynch, Pierce, Fenner &
Smith, Inc., jointly.

Wilmington Country Club, Wilmington, Del.

build certain facilities.

common

Co., Chicago, 111.

Merrill

end of June.

May 18 tiled 88,512: shares of common stock (par $2.50).
Price—To 'be supplied by amendment.
Proceeds—To
selling stockholders.;.. Office—4285 North Port Washing¬
ton ; Road,, Milwaukee, Wis.
Business—A domestic dis¬
tributor of hospital supplies, equipment and furnishings.
Underwriter—Blunt Ellis & Simmons, Chicago, 111. Of¬
fering—Expected in June."

per

Underwriter—Harriman

Ripley & Co., New

Registration—Expected shortly.

^Toronto (Municipality of Metropolitan) Canada
June 4 expected to file $39,982,000 of sinking fund and
serial debentures. Price—To be supplied by amendment.
Underwriters—Harriman Ripley & Co. Inc. and Dominion
Securities Corp., both of New York.
I

Union Electric Co.

(Mo.)
23, J. W. McAfee, President, stated that the com¬
pany plans to sell about $30,000,000 of additional com¬
mon
stock later this year through rights to common
stockholders. Proceeds—For expansion program. Under¬
writer—May be determined by competitive bidding.
Probable bidders: Lehman Brothers; White, Weld & Co.,
and Shields & Co. (jointly); Merrill Lynch, Pierce, Fen¬
ner &
Smith, Inc. Offering—Expected toward the end
of the second or third quarter of 1959.
'
Feb.

Wayne Manufacturing Co., Los Angeles, Calif.
May 26 it was reported that this company plans a sec¬

ondary offering of about 90,000 shares of common stock.
Proceeds—To selling stockholders. Underwriters—Mit-

chum,

Jones

Schwabacher &

Templeton, Los Angeles,
Co., San Francisco, Calif.

Calif.;

and

The Commercial and Financial Chronicle

Mutual Funds

net

specializ¬

no-load mutual fund

By ROBERT R. RICH

in the energy industries, on
May 6, 1959, reached a record
high of $8,008,145, equal to $21.69

share,

from $950,216, or

$12.00 a share at October 19, 1955,
date of the first public offering of
the
Fund's shares.
During the
three and one-half year period,

Fund's net asset value per
price increased 86%, in¬
cluding capital gains distributions
totaling $0.64.
Energy
share

Energy Fund's six

;

largest hold¬

Reading,
Instru¬
Royal Dutch, Ampex Corp.

ings are Philadelphia &
Philips
Lamps,
Texas
ments,

Electric.

and Tampa
:

during
the
year period
hold¬
ings:'Philadelphia & Reading;
Texas
Instruments, and Philips
performers
one-half

Star

and

three

are

the Fund's three largest

Fund invest¬
doubled in
value and have contributed to the
rise in total net assets from less
Energy

have

which

million. October, 1955, to
million, are Cutler-Hammer,
FXR
Inc.,
Litton Industries,
Machlett
Laboratories,
Nuclear
Development Corporation of
America, and Packard-Bell Elec¬

than $1

tronics.

.:V

Lynch

SAN FRANCISCO,

and

G.' Dempsey

liam

Leathers

are

gomery

have been discovering companies that are best known
or
minerals producers or railroads, yet are

creased

1959. It adds: "Record
employment, the highest
average hourly wage rates ever
known,/ an
upturn, in
weekly
hours

owns

attention to

properties.

peaks for

book value

(Pennsy at

net

market

quotation.

better than 80%

Insurance stocks, with

April

Still, down the ages there have been misanthropes to contend
offered the man in the street free gold pieces, he'd turn
away in scorn. This would appar to apply to Wall Street as well as
Main Street.
An example is Canada-based Mclntyre Porcupine

6% rise in retail sales

-v#,

•••

method of demonstrat¬

unique

advantage of investing
for
capital and income growth
rather
than for a high
current
income."

The

stock

American

Telegraph
was
of com¬
parison because it normally gives
a higher-than-average return
but
shows
less-tnan-average capital
Telephone

selected for the purposes

$2.85 last October and $2.61

year

expenditures

consumer
a

ing ,"the

;

Affiliated Fund, Inc. has chosen
a

income

and

earlier. Capital shares have
at the
latest tally to

growth.

The dividends paid
Fund

87,920,794 from 87,531,971 in Oc¬
tober
and
84,145,292
in ' April,
1958.
;

vary

by Affiliated
business condi¬

with

while

tions

disbursements

the

America's premier in¬
vestment company remained un¬
# '
changed until this year when the
Chase Fund of Boston reports
stock was split 3-for-l and the
that as of April 30 net assets were
payout increased. \ fr'' I' :
$10,746,277, equal to $13 a share,
Period selected for comparison
on
826,932 shares against $6,041,- was one of generally rising se¬
492, $9.81 a share and 615,584 curity prices. As affiliated Fund
shares on Oct. 31, 1958.
notes: "It should not be construed

that if you

rose

increased

discount.

Mclntyre,

assets

from

their rich

underlying portfolios, are prime examples of the availability of
a

.V;

„'

.•

$271,687,817 Trbm $249,535,889 on
Oct. 31, ,1958 and $219,269,885 at
April 30, 1958. Net assets a share
at latest
report were $3.09, up

discount) would indicate that their discovery provides no assur¬
ance that
the stock market will, any time soon, translate asset
into

year ago.

over

this

1958's record level.

from
■

Dividend Shares, Inc.'calculates

situation (Pennsylvania is one)

fraction of their

than

ahead

of Norfolk & Western and innu¬

Every now and then analysts will call
in which the worth
company's holdings is greater than the going price of the
The fact that these stocks nevertheless go on selling at a

merable other

mere

du Pont de

give up its working control of General Motors, in
two of every nine common shares, and Pennsylvania

RR., which has working control

stock.

Co., which is contesting in the courts the Government

Nemours &

of the

such companies as E. I.

the months
any
other
nation has ever enjoyed."
:
This is seen contributing to new

personal income

and about

are

Fund

and reductions in

of work

unemployment will result in

Ltd.

which it

obvious

For the truth is that

EATON & HOWARD

end'; of

average

\
Bullock

imperial quart-size invest¬

ment

CONSECUTIVE
'•'"QUARTERLY DIVIDEND

the'.^six-month

investments

68,621,515 and shareowners in¬
from 158,205 to 176,719.
Highlight of the report is a
forecast of a step-up of R% in the
rate of business outlay for new
plant -and equipment before the

larger

demand that it

companies in their own right.

(April 30) totaling

over $8 million, yet is appraised at less than nothing in the market¬
place.

inqth

$379,942,492, or
Oct. 31, 1958.

reports net
assets at April 30 of $52,077,787, or
$14.19 on each of the 3,668,373
shares
against
$34,854,419
and
$11.54 a share on the 3,018,817

had

year ago.

The semi-annual report also stated

manufacturers

investment

funds

a rise of 51%
from
During the year shares
outstanding rose from 61,410,000
a

•

National Securir

mutual

$465,604,584,

analytical-minded than the generation, that went before;' - lating equipment, and the . chem?
investor often is attracted to the closed-end companies k icals.\r-V \ "y':
because of their bargain aspects—on the balance sheet. - A spot
Canadian Fund, Inc. reports net1
check of such companies shows that more than 80% are selling at
assets on April 30 amounted to
a discount from their asset value.
*„'
■
$47,214,730, equal to $1-8.76 on each
In a stock market where the number of equities on the bargain
of the 2,516,516 shares. " This com¬
counter has been shrinking for over a year, the search for reason¬
pares with $39,009,481 and $16.13
able values is being intensified. Professional investment advisors
a
share on the 2,417,578 shares
and the new generation of serious investors (not to be confused
outstanding at April 30, 1958. ; v
with the prime customers of penny-stock never-never land pro¬
motions)

the fiscal year

that Investors Stock Fund's

Mines, which produced in 1958 229,000 ounces of gold valued at

Street.

Series

combined net assets at the close of

$505,951,446,

a share, on April
jump of $3% from

share,

ties

Mont¬

301

was

that its

nounced

total

today's

Pierce, Fenner &

Incorporated,

John

affiliated with

now

Merrill Lynch,

Smith

Cal. —Wil¬

Fund, ;; Inc.

country

dollars at

(Special to The Financial Chronicle)

soared

illustrated, exhaustive 36+

page pamphlet 'report, National
Securities & Research Corp. .an¬

of a sophisticated investment community also has ;; period were in oil and gas issues,
served to focus attention on the closed-end investment companies, \.
steel,*- electrical V; equipment
and
many of which are dealt in on the New York Stock Exchange/;.;?
< electronics,
business and. .calcu¬
this

value

Two With Merrill

This

$15.23

The

Other

announces

the asset value of

Discount

appeal of the mutual funds to the small, mediumsize and even bigtime investors is their diversity of commitments
under the guidance of professional management. The growth in
The basic

Lamps.
ments

assets

30.

Dollars at

Stock

Inc.)

equal to $17.53

ing

per

Investors

Report

(managed by Investors Diversified
Services,

Fund,

Energy

assets

Total

The Funds

Energy's Assets at
$8 Million High
a

Thursday, June 4, 1959

...

(2558)

trust, could give away its deposits of gold, silver and cobalt,
locked along with other metals beneath the soil of Canada, and
still find itself appraised in Wall Street at less than asset value.

...

made

;\as an indication of future results.
Boston

Long shunned by Wall Street prospectors, the stock recently sold
around 86, giving an indicated value to its 762,595 shares of $65,583,170. At the close of 1958 the blue chips and other high-grade issues

Fund,

Inc.,

should

illustration

The

leading

con¬

its hold¬ sidered in the light of Affiliated
ings of common stocks to 65.3% Fund's policy and objectives; ahd
of
its
assets
during the three the. characteristics and quality of
months ended April 30. Henry T. its investments, and the quality bf

balanced

fund, reduced

in Mclntyre's

rich portfolio toted up to $79,000,000, although car¬
company's books at $48,000,000. These holdings ac¬
counted for all but 15% ($387,000) of the $2,600,000 pre-tax profit.

BALANCED FUND

ried

17 CENTS A SHARE

the

After-tax net

CONSECUTIVE

filth
■■■

QUARTERLY DIVIDEND

share.

during the quarter.

CENTS A SHARE

E&K i

stepped

up.

$152,760,645, equal to
$15.12
share on 10,105,275 shares. / '

•

net

Corporation pension funds, responding to the rising market in
equity securities, last year increased their purchases of common;;
stocks while buying a smaller amount of corporate bonds'. These funds, reports the Securities and Exchange Commission, bought
$1.2 billion worth of stock in 1958, compared to $1 billion in 1957.
Bond

BOOKLET-PROSPECTUS

of assets.

0/GROUP SECURITIES, IMC.
in¬

In terms of market

cordance

yearly rises

were

$2.7

1°57

and

$2.4 billidn in

by insurance companies.

Fund

net

are

stated

equal

compares

•

Incorporated

with

■

ac¬

American

management'®
judgment.

tinger is
curities

Income

Fund

Business Shares

advertisement.
Nome.

The
anced

Address.

Company

invests In a portfolio bal¬
bonds and preferred stocks
stability, and common stocks
selected for growth possibilities.
between

selected
/

City

DISTRIBUTORS

Balanced Investment Fund

for

_Sfai»

;

iviackey

Smithers

request

The

Lokd. Abbktt & Co.
New York

.huago

—

Atlanta

—

Los Angeles

Margaret
Secretary
Assistant

now

Calif.—John
with F. S.

Russ Building.
Mr.
Mackey was formerly -with
the First Boston Corporation.

Co.,

Dean Witter Adds
Financial Chronicle)

SACRAMENTO,

E.- Erickson.. is

Witter &

Calif.—Robqrt

now

with

Dean

Co., 924 J Street

Joins Merrill Lynch

(Special to The Financial Chronicle)

May

rose

Number
from

2,948

N. Waggoner is now

Street.

directors

elected

Baird' Secretary,

.O.
Young
and; Harold
Treasurer.

Mrs.

Assistant

Frank Knowlton Adds

board

GREENSBORO, N.;C.— Robert
with Merrill
Lynch, Pierce Fenner & Smith,
120 North- Green®
share increased from Incorporated,

$39.02.

shareholders

Gordon

**C

upon

INC.

/ 63 Wall Sfrtef, New York 5, N. Y.

asset value

$30.80

SAN FRANCISCO,
M.

Rowe

$21,349,286
compared
with $11,516,459 a year ago.
Net
were

5,058.
Prospectus

GROUP,

Price Growth Stoek Fund
28

assets

•

net

with Columbine Se¬
Corp., \ 621 Seventeenth

(Special to The Financial Chronicle)

(Special to The
re¬

With F. S. Smithers
\

$106,709,938,
equal
to
$9'.87 t a
share against $84,401,282 and $7.64
a share on April 30, 1958.
Total

now

Street.:,

„

Mail this

staff

818 Sev¬

Colo; — LeRoy, Fet-

;j.DENVER,

'■

ports net assets at April 30 were
>

to the

(Special to The Financial Chronicle)

$16.78
a
with ^ $3,-

••

added

been

With Columbine Sees.
.

as¬

130,000,
or
$10.84 a
share, on
April 30, 1958. There were 658,625
shares outstanding in the latest
reporting period against 288,710
shares a year earlier. -

1956.

has

reports

•

This

share.

pension funds increased by $2.8
Previous

billion in

erated by unions or placed

lard

of Copley and Company,

amounted

April 30

$11,048,000,

billion during 1958 to hit a record high of $22.1 billion.

These figures, as compiled by the SEC, do not include funds op¬

vesting in bonds,
preferred and com¬
mon stocks,
with
the proportions
"balanced"

Total assets of the corporate

Fund

Growth

{

enteenth Street.

Mutual

Putnam

end of the year.

ADMINISTERED FUND

assets

sets

value, stocks held by corporate pension funds were valued at more
than $9.5 billion or 39% of the funds' combined portfolios at the

the FULLY

mutual fund

holdings of the pension funds still consist of corpo¬
for about 56% of their total assets.
27%

Fund.'*"

(Special to The Financial Chronicle)

$112,325,098, equal to $9.38 on
each of the 11,973,095 shares out-:
standing. This compares- with net
assets a year earlier of $75,242,794f
or $7.42 a share, on the
10,135,763
shares outstanding at that date.

purchases dropped from $1.6 billion to $1.3 billion during

The major

Affiliated

DENVER, ColO.—John L, Bal¬

the period.

rate bonds, which accounted
Common stock amounted to

been

favorable

instances less favor¬

some

have

Copley Adds to Staff ^

t$t

!]:

American

Common Stock Investing by Pension Funds

able

994,544,$17.25
a
share
and
11,474,997 shares on Jan. 31. On
April 30, 1958, net assets were

able these days, but they expect to be in vogue again one day. And
it may come sooner than they think, as the quest for hidden values

Street, Boston, Mass.

and

would

instances

some

shares. This compares with $197,-

To be sure, there are the occasional market students who live
by the balance sheet. They admit that their views are not fashion¬

„

Dividends payable June 25, to shareholders
of record at 4:30 P.M., June 10, 1959.

periods

at mar¬
ket totaled $206,053,253, equal to
$17.55 on each of-the,.11,741,449

thusly: "Sure, Mclntyre's a miner, but for all practical purposes
an investment trust.
Emphasizing the gold doesn't help—it
Today investor psychology is inflationary and gold is
shunned as a deflationary hedge."
it

other

•»

On April 30 net assets

hurts.

STOCK FUND

24 Federal

$2,300,000, equal to $3.04

Ask Wall Street investment counselors why they are so indif¬
ferent to a seemingly rare bargain and the answers may be summed
up

EATON & HOWARD

was

the stock bf
Vance, President, in announcing
this, said holdings of .convertible, American Telephone & Telegraph
preferred stocks, were increased Co. Comparative illustrations for
in

investment

(Special to The Financial Chronicle)

OAKLAND,* Calif.—Edward H.
Stephens has been added to the

J-. H,ead staff

Frank

Knowlto®

Bank of America Building.

Co.,

Volume

189

Number 5852

The Commercial and Financial Chronicle

(2550)

for

the

changes which they be¬
in ceilings on pub¬

lieve necessary
lic

debt

interest rates

and

which

the

test the

ahead.

" i

cludes

fe'r

funds

the

investment

area
these days. On the basis of
performance-of' the^ corporate new

cesses.

" •'*

This

■

But

the shadow

wliiclf

the

Federal

issue, plus safety

an
,,

•

clearly

appears

tofore,

finds itself continues to hang

The

non-callable

over

indicated

through' the
water

over

is '

system

direction

the

markctwise. The

instituted

5%;

around
more

other

central

the

country

than bring it
money

little

into line with

rates.

rf l

•

;

•i

time if

any

change

The

move.

both

chases

its

tobacco;-'4

is¬

tlie par: value

•

of this

issue

CAN COMPAN Y

At
of

the), Close

STOCK

this

wilL be mailed.

the

(of

Pasco

22,

the

Compuny;;,

Common

1959,

Stock

Corporation,

30,' 1959

■

fFrr/'/
ness-oil

:s.
*■

*•'

payable

;

A. McCASKEY,

Series

Per Share

$L2S

4:25%
4.35%
Series F, 4.35%

$1.0875

Series G,

$1.10

$1.0875

4.40%

VINCENT T. MILES

May 27,1959

Treasurer

wcwcsscaoOTPOunsN

New York 22,

TENNESSEE

N. Y.

CORPORATION

(
E'

$1.0625

Series E,

Secretary

SCHNEIDER

May 19,1959
A

Broadway, New York 4, N. Y.

INTERNATIONAL

dividend

fifty-five
share was
declared. payable June 26,
(55c)

cents

per

1959, to stockholders of rec¬
at the close of business

Directors of International

Company have declared

Harvester

quarterly dividend No. 177 of fifty
cents (50(i) per share on the common
stock, payable July 15, 1959, to

MACHINE AND

June 11, 1959.
61

John G. Greenburgh
Broadway
Treasurer.

New York 6, N. Y.

stockholders of record at the close

METALS, INC.

business

15,

June

gerard j.

1959.

eger, Secretary

62nd BHvidvnd

QUARTERLY

the-

June

FORTY

has /^been

busi¬

quarter

JR.

'<,June

DIVIDEND

CENTS

for

1959,

holders, .of

COMPANY

share¬
June

Electric

New York, N. Y.

•

16,

\Nesi Penn

BOND AND SHARE

second

payable

record

ELECTRIC

the

1959,

30,

per

ji'declared

capital stock

Secretary.

'•

ord

to shareowners of

the close of business

300 Park Avenue

The

1959.

HARVESTER

(50c)

.record at the close of

J'ufie'12,

holders of Preferred Stock of

Secretary and Treasurer
25

•(

declared

was

following quarterly
payable July 1', 1959

1959,

business

Directors1,

May

the

Michael D. David

share,

per

29,

COMPANY

Board

clared

dividends

Series B,

stockholders f of ' record

inot

today.

"41 JOHN R. IIENRY, Secretary

Directors

June 12, 1959.

a"'?, maturity

per

Tpns/erXbook?. wil] j-emain open/.-'Cljecks '
*x.t I

dividend

■

•dividend of fifty cents

1, 195')" to Stockholders* of,
record at the close ofbusiness June 12. 1-9591"■

Treasurer

Corporation
at
a
meeting held on- June
2, 1959, declared a cash divi¬
dend
of
twenty-five
cents
(25<i) per share on the Com¬
mon Stock of the
Corporation,
payable on June 30, 1959, to

COMPANY

of $50

June 8, 1959.-

is to

Allegheny Ludlum Steel Corporation held

payable; July

meeting

May 25, 1959 a quarterly dividend of
three-quarters p/T eeivt was declared
Preferred -Stock

PREFERRED' STOCK

The Board of Directors has de¬

Pasco

Board

Cerro

AMERICAN

and

the

The

product

PittsBWJTirPenna.

■■f,

SWEARINGEN.

York

CORPORATION

(to-stockholders of record at

Allegheny Ludtpti Steel Corperation

V >1 ERIC AN X

PlfEFERRF.D

New

Cerro

May 28, 1959

June

payable

into

went

DIVIDEND

record

FiftyJi; Gents ($.50) per
( share on its* capital stock of

markedly when

available

Making

-•>

one

Assistant

Broadway,

i'V-

120

oL:

;;

new

ANACONDA

THE

DIVIDEND NOTICES

i>-i).

the books

^1959|°mPani Rt the °l0Se °£ 'wlsiness June

deal involves

( has ;.today declared

^il

Capital Stock registered

specula¬

j. .;;Tlie Board of Directors

rr.^,.y

major raw

■Ml

.ererr.d

DIVIDEND NO. 204

...

pprpose

QUARTERLY I

AND

•; 1 o:
Cwenty-five Cents
(25c)
per
share, being Dividend No. 121, on the Preferred
Capital Stock of this Company, payable August
1, 1959, out of undivided net profits for the
year ending June 30,
1959, to holders of said

company

TOPEKA

outright

only sizable

former

attracting '.wide

swelled

the

ATCIIISON.

off bank loans and to put the
in fiends to finance pur¬

pay

Now, jf the administration : and
Treasury will clear the ah* by
moving quickly to ask-; Congress

Morris:-, Inc.,

The

LONG ISLAND LIGHTING COMPANY

SANTA
FE
RAILWAY
COMPANY
New York. N. Y., May
26, 1959.
The Board of Directors has this
day declared

AnacondA

5%^:

projected offering of $40'
million of 20-year debentures.

banks

does

could

would

Cash Dividend No. 156

with the Securities
'aficUeExchange \ Commission ^to;

bor¬

Series D,

. , }.,
-The list of prospective

cover

one

THE

DIVIDEND NOTICES

(registration

level being

new

that

bids,

DIVIDEND NOTICES

inven¬

Monday is loaded
hut all of them

are

DIVIDEND NOTICES

June 12,1959.

The

v-*V■4% • Wi'%

was'

market
several

calendar.

priced to yield 5.05% and the

sues

widely

for member bank

rowings

Li.-

enjoy
on

tions that may or may not reach
market despite their places on the

vBig Industrial Looms

trend * in

been

such

demand.

had

Many

Public

latter

to that extent had been discounted

i4:

will

work

Edison

market-conditions

was

much

ties.

good

appear.

prospects

ten-year,

Consolidated

anticipated in recent months:and,- .Philip

■

again

preferred

new

provisions.

both

dictate

rates

the dam.

five

a?e subject to call at

ap¬

markup in

Unquestionably ; the
that

•

Once

prospective

•Service Electric & Gas C'o.'s

crystallizing

and

30-year^ 5%s. and

Co.'sX

prospect and

new

process

'But

them¬

rediscount

Reserve

investor^

reconciling
latter

that the

seems

now:

and

be
the

bankers

cessions, such

possibly firmer money
months ahead. 1>

market

Federal

distributors

issue prospects.

new

issuers had been disposed to con¬

squeeze

Treasury

by the slender nature of the list
of

million

being put up for bid on
Tuesday by Duke Power Co. With

tories in the week ahead, judging

for

money

market,.- things; are looking by the brisk reception, accorded
The last two big public utility the last two big public utility of¬
offerings have been ringing suc¬ ferings brought to market. There¬

selves

and

securities

new

opportunity

issue

peared

f r:

Underwriters

fixed

with

by
of principal.

market

$25
stock

attract

around

rates in the

relatively..: sma 11
and
involving
equities rather than debt securi¬

spectre

when

afforded

the general picture along w ith the

'4 V.;;

Ahead

with

mettle

Letdown

■■

market's

primarily interested in the return

ad:'':

vr;

could

Hopeful o.; but ^ cautious, . best
characterizes" the ; atmosphere

-if'•&>>

"is;--'

Buyers Seek

up.
cil. ?

offering

investment, and that in¬
the ( institutions,
pension
and trusts, obviously
are

People
term

"'■/'■J:

•

What

J-*

side

rare

comes.

government-may pay on its
investors, institutional
.and otherwise, might be able to
shape their programs for a while

the

undertaking,.. this

securities

bit

these days, and being a negotiated

Company

————•

1959.

(Incorporated)

■

to
Robert G.*Burns.

Notice of Dividend

Treasurer

Quarterly Dividend

The Board of Directors has

declared

AMERICAN
lU

COLORADO

THE

COMPANY

quarterly dividend of 75p
a

share (1(2%)

per

Preferred Stock for the, quarter
and

dividend of 30^ per share on the

'.
<Ma"

June

record

the

are

Z:'-l

May-27,1959

•-

The

Boaid

vegular

j0,

dividend

hpldefs

With

Secretary and Treasurer

record

June .9.

the

corporation,
months

the

than

results

will

dividend

order

"Earnings dur¬
been very satis¬
that second

are

good

first

the

Those

titled

Common

Stock

—

$.25

new

better

program

plant

receive

given

tional-share

fractional-share

the
an

who

common

option

interests

Cumulative
—

Stock

Preferred

$1.25

per

their

stock

share.

.share

dividend

interests

their

buy

frac¬

the

nearest

payable June 30,
the close

1959 to "stockholders of record at
12, 1959.

of business June

handling such
will

the

Wm. E.
Over

1,100 offices in

U. S.,

Canada and Hawaii

i„4

jxina/i£p,
SYSTEM

Thompson
Secretary

June 1, 1959

purchases

be made at the
account

period
may

1959.

and

which

of, such
such sales

the

holders

sales, which
of, and for

holders, The
or
purchases

made

Any

will expire on
August
fractional-share
interests

maining after August 11,
and

and

instruction

risk

cash

1959

Declares 285th Dividend
fuel

37Vii

associates

OnMoy 28, 1959,

dividends

dividend No. 285
of

common

stock

regular
quarterly dividend of 40 cents
a
share,
payable June
28,
—

per

declared

1959 to shareholders of record

stock

of past

cumulative
—

dividend

preferred
a regular quarterly
of $1.12j^ a share,

11,
re¬

earnings,

stockholders of record

atthecloseof business

1959.

June

250 Stuart

was

payable on
July 1, 1959, to

Eayable July 1, 1959 to shareolders
of
record
June
8,
e. h.

by the Board

of Directors out

June 8, 1959.

4'/2%

thirty-seven

andone-halfcents

12, 1959.

bird, President
Wm. H.MATHERS

St., Boston 16, Mass.

Vice-President and Secretary

May 28, 1959

will be sold

proceeds forwarded to
fractional-share interests.
D.

and

full

Marine Midland Trust Company
York has been appointed agent for

The

New

YALE &TOWNE

en¬

stock dividend

to sell

are

Semi-annual

Company «

INDUSTRY

gas

for

tional-share interest sufficient to round out
/,

HOME AND

WITH ESSENTIAL BASIC PRODUCTS

2 percent
quarter in

available

stockholders

common

result

will

per

SYSTEM^

quarter.

improvement, designed to reduce costs, ex¬
operations, and increase efficiency.
We expect shortly to announce the detailed
plans, for the new program."

COMMON STOCK CASH DIVIDEND

West Penn Power

SERVING

last

cash

pand

The Board of Directors has declared cash dividends

increase

reinvestment

120th CONSECUTIVE QUARTERLY

ELECTRIC

Monongahela Power Company
The Potomac Edison Company

stated,

those, achieved

stock

WEST PENN

May 28, 1959.

eastern

Wc/are continuing payment of

I-

have
indications

recent

quarter

■ *, ■

June 12, 1959
June 3, 1959

Declared

the

respect to the stock dividend on the
stock, Mr. A. F. Franz, president

factory- and

cents

common

ing

Record

1959.

62 'a

per share

Payable June 30, 1959

June 8,

common

declared

40d

to
the

Secretary and Treasurer

Colorado

today, Tuesday,

2 percent common stock

Directors, also

quarterly

business

the

These dividends are payable on June

stock.

The stock

Louis T. Hindenlang

The

Corporation

share on the scries A $50 par value
preferred stock, and 68:,4 cents per share
jn
the series B $50 par value preferred

payable July 1,

8,, 1959.

Directprs

Iron

record

1959.

per

Common Stock

1959,

29,

B. M. Betsch,

payable July 8. 1959 to
stockholders of, record on June 9,

transfer books will remain open.v

»-V '

tib:

holders

and

dividend

ending June 30, 1959

have been declared. Both dividends
1959

Fuel

May 26, declared

Common Dividend No. 203

Dividend Notice

Preferred Dividend Nor213

FUEL AND

IRON CORPORATION

The .Board
v-

June

shareholders of

;

COMMON STOCK

the Common Stock,

payable

BANK NOTE

quarterly dividend
thirty-five cents (35d) a
a

the

McGREW, Secretary

Our stock is listed

the

New York Stock Exchange.

Symbol is EFU.

THE

YALE & TOWNE MFG. CO.

Cash dividends

paid in every year since 1899

The Commercial and Financial

Chronicle

Thursday, June 4, 1959

(2560)

BUSINESS BUZZ

Business
Ofl

•

man's
A

Behind-the-Scen* Interpretation*

industry, a

dustry,

perhaps

greatest production year of

all

The
was

cluded

ity,
after
nationwide

ers

y ;>

when

tions

budget, how do you expect me to live

40% increase, it is expected
a 25% increase in de¬
mand for all cement uses will

the

These are estate problems
in the family-owned companies,
and the inability of the very
small companies to keep abreast
gers.

result.

Impact of Highway Program

with the technological advances

The

greatly expanded highconstruction program is a

way

substantial

factor

contributing

their l competitors.
Larger
operations can afford specialists
in
manufacturing,
marketing

of
■■

the growing use of cement.
Approximately 24% of all port-

to
f

land

United

highway

States

and

street

used

purposes.

favor

uniform

fied

manufactured

highway
all

that

for

and

purposes,

pacity is used for road
number

used

are

tities

The

opposition to mergers includ¬
ing: A well-located and wellmanaged one plant cement com¬
pany in an industry requiring
such heavy capital investment is
a
"virtual gold mine" and can

other materials

industry,

has
its
labor, need

production. There
in

prehensive,

most mergers, the
company is submerged
identity lost, and in some
instances, a small, well-run in¬
dependent can actually do a
more efficient job of
operation
than can a large and unwieldy

and its

new

the

and

are some

industry

despite

New plants
over

stance,
in

the

are

being opened

country.

some

attendance

500
at

For

persons

the

in¬

were

dedication

and formal

opening of the Mis¬
sissippi Valley Portland Cement
Company's 85,000,000 plant May
5,

near

historic

Vicksburg, Miss.

-1* is designed to produce 2,000

barrels daily. After the

tion, limeh

of the

was

plant

Many

those

conducted.

present

the

within- the

industry

gation

siderable

aircraft
need

Department of Commerce
agrees with the editor of "Rock
Products," George C. Lindsay,
that marked progress for the in¬
dustry is a certainty for the fu¬
ture. He says industry members
enthusiastic

over new

investi¬

the cement products.
The fast developing missile and

The

are

and

research

development programs
and improved heat-

metals and
alloys.
For some time the Bu¬
reau has been investigating the
preparation

properties

and

heat-resistant

monly known

phases

concretes,
as

System,
Hotel

crete
\

pads

Kay,

pretation from the nation's Capital

least

and may or may not

"At
using a

increase," said he.

the

the "Chronicle's"

trying
every
control device they

are

and

quality

are

There's

new

dising.
more

mere

exciting

that

approach
uses

crete lias been made.

they

think, is wide

ticularly

with

par¬

use

concrete in structures. Some in¬
sist

that

salesmen

need

Marshall,
at

former

Istanbul.

New York

research

jner of Butler, Herrick & Marshall.

built

Canproducers,
to sell a

ada. ;

The Canadian
incidentally, expect
United

raw

supply

local

most

economic manner

were

Attention Brokers and Dealerss

Indian Head Mills
'.*)
•

20 BROAD

•

Official Films;

Southeastern Pub.' Serv.

u.giLLi IM'UIMI

J'r "—?•*:-'

TELETYPE NY 1-971

York telephone number is

CAnal 6-3840

HEW YORK 5, N. Y.

TEL: HANOVER 2-0050

Further Growth Indicated

lerner&ll
'

Investment Securities

10 Post Office

Square, Boston 9, Mass.

Telephone

its

study shows that expansion will
i

STREET

possible.

says

N. Y,

In¬

corporated, 122 South La Salle St.

FOREIGN SECURITIES SPECIALISTS

the

Products"

Railroad
Lib¬

(paper).

Carl Marks & Co. Inc.

regional market in the

"Rock

Connecticut

Edition—Eastern

Our New

States.

high

materials

; r.

1346

W., Washington 6,
•
r
V - \ .V'- '

erty Street, New York 6,

111. — Stephen
S.
Head has been added to the staff

s*.c^S

„

Each plant
efficiency, high
capacity equipment. Each plant
was
designed to process local

included

Presidents Conference, 143

(Special to The Financial Chronicle)

substantial amount of cement to
the

OEEC—First

Botany Industries

in the United States

last year, and two more in
"

the

TRADING MARKETS

that 10 new cement plants

were

-1223,

D.. C.,

Adds

C. Allyn and Company,

Department

Yearbook of Railroad Information,

CHICAGO,

of A.

Avenue,

1959

enthusiastic about the

prospects of watching the indus¬
try make the progress it's deter¬
mined to get."
Meanwhile, the National Bu¬

Affairs,

Public

State, Washington 25, D. C.

\ Suite

new

A. C. Allyn

State —

Supplement - to'^ the
General
Cataloguer Books Published in
1958 — Organization for European - Economic'- Cooperation,

Stock

activities.
rHe is a stepson of the late Charles
H. Marshall, former senior partof

Secretary

Publications

Mr. Marshall will be

charge

sales philosophy.
"We're

of the

Exchange.

iin

This field,

future

Consul

has

members

of con¬

open,

Peace in Europeby Christian A.

Public Service Division, Bureau

become associated
vvith Butler, Herrick & Marshall.
:30 Broad Street, New York City,

attitude

question

Many

than
and

Anthony

new

16, N. Y.

for

Herter,

American

merchan¬

Fourth Avenue,

Sons, Inc., 440

Text of address

Turkey,

—

Kenneth Brown—John Wiley

views.]

own

Engineering

Design

Package

coincide with

Butler, Herrick & Marshall

to be reached.

toward marketing and

60 East

Street, New York 17, N. Y.

Anthony Marshall With

uni¬
goals

cement

42nd

Program

More than ever be¬

on.

maximum

St.,

Banking, Annual

Savings

New York

Most others
conceivable
can get their

computer.

digital

company

one

Stocks:
Cobleigh—David Mci-

Mutual Savings Banks,

entire cement-making process is
on

Street

Report—National Association of

[This column is intended to re¬
flect the "behind the scene" inter¬

throughout

(paper),

Inc., 119 West 40th
York, N. Y., $2.50.

Mutual

Florida.

the

"Automation

Get Rich Buying

New

con¬

Canaveral,

Cape

East 42nd

Dr. Ira U.

the re¬

missile-launching

Study

1958—Opert

.New York 17, N.. Y.

there has been construc¬

tion

after these goals with
vigor, and they are already roll¬
ing up favorable results, said
Editor Lindsay.
going

Washington,
;V

Operations in

Horwath,

com¬

IIovv

outgrowth

ating Ratios for 100 Hotels Lof
cated in 53 Cities—Horwath &

conquer

agement,

• -

(paper).

refractory cast-

ables.

in technical, man¬
sales and other fields
of industry endeavor.
They are

coatings,

few

years

Lib¬

by a Federal Reserve System
Committee-.^r--Hoard of Gover¬
nors
of
the Federal Reserve

new

resistant

Funds Market—A

Federal
.

bright

dedica-

served and tours

were

because

was

New York

—

(paper).

outlook for the Portland cement

ap-

*great

the

the industry is having,; that
over
capacity could prove to be
; a headache in, certain areas, j •
all

gressive; in

year

least

smaller

while

capacity

over

authorities
.

company.

markets,
over

—

long as it remains alert and ag¬

problems
for

forever

stand

considerable quan¬

highway

cement

plants are scheduled to go
into production in 1959, and an¬
other half dozen in 1960.
;

new

series of contentions advanced

building,
including clay pipe and tile, re¬
inforcing steel, aluminum, lum¬
ber, timber pilings, paint and
explosives.
®

such

reau

formity
were

Straus

Ralph

of Standards is doing con¬

continue, but at a slower pace
in the future.
Six completely

fore,

least

purposes.

expanding,

obtain capital

On the other hand there

50% of all sand and gravel com¬
mercially produced, and about
12% of the structural steel ca¬
A

difficult to

Anti-Merger Contentions

asphalt output is devoted to

highway

within mine?"

erty Street, New York 5, N.

hands

ce¬

used

diversi¬

ization.

about 70% of

purposes,

income within

while

Portland

all

required for extensive modern¬

The American Road Builders'

reports

cleared for

geographic

within the in¬

locations and
thus not so sensitive to changing
local conditions; with growing
automation and mechanization,
smaller companies will find it

terstate system.

ment

of merger

the way

whatsoever, because
they have priority over the In¬

24%

Expanding Private Enterprise for
Free World Economic Growth-

within its

Chamber of Commerce, 65

dustry, according to the survey
by "Rock Products," included:

programs

about

sale

Other arguments advanced in

threat to these road

Association

and

economies.

be slowed down after 1,961

make

for

by the lack of funds, the indus¬
try would feel the slow down,
but the primary and secondary
road
programs
will
continue
using great amounts of cement.
There is

which

areas

production

possible

Should the Interstate road pro¬
gram

other

and

manufactured

cement

the

primary reasons are the

of further inevitable mer¬

cause

that only

United States Government can't live

inside or
outside, because of its high de¬
gree of specialization."
Two

A Case
Banking Institutions

sociation, 405 Lexington Avenue,
New York 17, N. Y. (paper).
"If the

Against

completed.

are

,■

York State Bankers As¬

—New

industry, either from

increase
current addi¬

Re¬

Planning

for

Study

the

'Business

and

Emergency

sification is good for the cement

additional 5%

(Experience in the British
Industry)—Bureau of

of Illinois,
Box 658, Station A, Champaign,
111. (paper).

feeling is: We don't think diver¬

capacity
of cement plants in this country
has increased 35% since 1955,
scheduled

gist

The

fields.

other

States Bureau of

Mines reports that the

Organiza¬

search,, University

primarily

Pur¬

Wages as

Union

Economics

industry

specializing

Rate

Clothing

is, the invasion of the ce¬
by manufactur¬

ment

tion

companies

diversification in reverse

—that

location and the amount of con¬

with

among

Credit

Minimum

Deterrent

general," said the publica¬
tion, "they aren't alarmed about
the mergers, but they are be¬
coming
progressively
uneasy
about

"Merged

Federation;

Consumer

chasing;

"In

struction under way.

United

making cement.

now

CIO

Making and the Transportation
Act of 1958; Effect of Growth

leaders expect to see
mergers and very little di¬

versification

recession has taken
place, and the industry is on
solind
ground. This does not
mean, of course, that the indus¬
try is going to approach capacity
production this year.
Some
plants
will
be
busier than
others, obviously depending on

The

AFL

that

states

New

Significance of,. Op¬

Nature and

industry
more

Avenue,

1.959, containing articles on New
Dimensions of Monetary Policy;

open¬

are

1958-

Current Economic Comment, May

expan¬

comprehensive

survey,

erations- R e s e a r c h;

plants

new

972 Fifth
21, N. Y.

bassy,
York

Gaulle

June

1959—Press and Infor¬
Division, French Em¬

mation

ing, "Rock Products," the indus¬
try's highly respected author¬

from the

' i,

Feb.

Expected

More Mergers

While

If Puerto Rico is in¬
in the overall outlook,

330,000 barrels.
Things are going strong for
the industry, and the outlook is
favorable for the future. Recovery

of the industry
place.

typical

production probably will be

the

move

sion taking

will reach 325,000,000

probably
barrels,

Administration,

barrels.
Department f of
Commerce experts say all indi¬
cations
are
the
1959
output
000

the

Sheet

Balance

mostly by
water
transportation and will
serve a compact market on the
Lower
Mississippi River.
The
Vicksburg
plant
is somewhat
will

cement

time.

previous high output year
in 1956 with about 312,000,-

stockhold¬
The

in four Southern States.

ers

its

having

the 6,000-plus

among

C. — The
growth in¬

WASHINGTON, D.
cement

A, Cr CV

JLJi f

Capital

(rem the Nation'*

\//"ta jf

--?■

Teletype

HUbbard 2-1990

BS 69

Full text of Commercial and Financial Chronicle : June 4, 1959, Vol. 189, No. 5852

FRASER