Full text of Commercial and Financial Chronicle : March 12, 1959, Vol. 189, No. 5828, Section 1

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ESTABLISHED

Volume 189

Number 5828

New York 7, N. Y.,

EDITORIAL
v:

As We
^ The inexorable

To Be Good Politics?

of events is beginning to

course

consciousness

the reluctant

even

disciples of

under way in
state capitals.

Washington and in

so many

former Economic

now

of the

{ the normal functioning of the economy
gotten or ignored—as they are today.

na-

Progressive Taxation

but

Continued

page

ene.

some

—

period

true

because

every

decisions

daily

make

develop¬

page

series

sponsored

almost as a hobby,
through various

ysis plus recent visits to several sections of the country,
I must

reluctantly and unhappily conclude that at least

33
the

address

by Mr. Hoadley before the 56th Savings and Mort¬
Conference, American Bankers Association, New York City,
4, 1959.

age

U
'arch

Continued

Association
of today's

issue.

Philadelphia

V '■

*2*

STATE

Municipal

IND

MUNICIPAL

Lester, Ryons & Co.
623 8o. Hope

'7,

Securities
'

•
•

;;

1, '

DEALERS

THE FIRST NATIONAL CITY RANK

BANK
Burnham

and

MCM1CRS ncft /0*K AND

,30 BROAD ST., N. V.

•

Distributor

Dealer,

S, N.Y.

01 4-1400

•

;

T. L. Watson &Co.
'

Iiweitnieni
y/'s/S/V

}/.

*/.

*/X7<yX's+y'S

ESTABLISHED

/ >p

Banks

{

New York

Broker*

BRIDGEPORT

BANK

Correspondent—Pershing A Co.

(Rights Expiring

Bell Tel. of Canada
Rights

Exchange

STREET

4, N. Y.

The Canadian Bank of Commerce

Block

DEPARTMENT

Teletype NY 1-2270

DIRECT

WIRES TO MONTREAL AND

PERTH

AMBOY

current

NEW YORK

17,

1959)

rights at the

market.

Montreal,

Ottawa, Winnipeg, Calgary, Vancouver,
Victoria and Halifax
-

•

DoMimox Securities

1 NORTH LA SALLE ST
CHICAGO

-For

(OKPORATIOTf
Associate Member of American Stock Exch.

Exchange Place, New York 5, N. Y

TeL WHitehall 4-8161

Tele. NY 1-702-3

California

Municipals
MUNICIPAL BOND
DEPARTMENT

TORONTO

Goodbody & Co.
115 BROADWAY

March

offer to buy .these

Direct private wires to Toronto,

Inquiries Invited

CANADIAN
7

MEMBERS NEW YORK STOCK EXCHANGE
-

Chase Manhattan

Southern

Maintained

and

COMPANY

Markets

Active

7.;

NEW YORK

DALLAS

•

New York Stock Exchange

25 BROAD

FIRST

1832

m
t.

,v"

Teletype: NY 1-708

Dealers,

Members

American Stock
?

Bond Dept.

Net

«'< 4M
4y/y/y.Y/y,

California Securities

Inquiries Invited

TELETYPE NY 1-22*2

;

'ZWM.

OF NEW YORK

Company

CABL.C: CO.URNHAM

Underwrite}'

San Diego, Santa Ana, Santa Monica

DEPARTMENT 3

the

Pasadena, Pomona, Redlands, Riverside,,

AMptlCAM STOCK EXCHANGES

15 BROAD STREET, NEW YORK

BOND

Offices in Claremont, Corona del Mar,

Encino, Glendale, Hollywood, Long Beach,

CORN EXCHANGE

bono department

Bonds and Notes

California

Members Pacific Coast Exchange

CHEMICAL
•

Housing Agency

Associate Member American Stock Exchange

UNDERWRITERS

BROKERS

Public

Street, Los Angeles 17,

Members New York Stock Exchange

BONDS

UAnover 2-<5700

TKt.Ki'HONf::

and

:■/"

State, Municipal

Public Housing.
.

page

Mid¬

appear

I1. S. Government.

Stale and

ahead.

poll techniques and interviews to
W. E. Hoadley, Jr.
keep abreast of the forward think¬
ing of a representative cross section
of American business leadership.
From a current anal¬

origins and growth
issues of public
on

some years,

to predict just

have endeavored

Candid photos taken at the 35th Annual

SECTION TWO

make

rough

longer

some

winter Dinner of the Investment Traders

now. i

now

expect will happen
economy not only during 1959

For
I

Brookings Institution, Feb. 5, 1059, Washington, P. €., and 'Y.'ill nc
published in Volume I, No. 3 of the California Management Review
in April, 1959.
7 7,-7"

PICTURES IN SECTION TWO

X DEALERS

can

short term and longer term

contemporary

Jacooy's

has in mind

must

♦An

•xir.

leadership

ments.

Continued

highly ^regressive Individual income- taxes
were,' of course, the main: reliance in implement-

one

which necessarily are rooted in our
beliefs
and
hunches
about
future

Neil H. Jacoby

analyze

for

one

theory suggests the elements

efforts

any

and time the changes
certainly ahead.
Each

idea of what

solution.

It is hardly necessary to remind
economists that their science had its

"t
'•

one

This

nomic

for¬

were

identify

which lie

analysis
than we do of new tools of thought.
These propositions are illustrated by
our failure so far to deal effectively
with the problem of reconciling full
employment with a stable price level
in a growing, free-market economy.
I shall try to diagnose this problem
and to show how traditional eco¬

or
to interfere with

economic

which

Obviously, it is much more difficult
what rate of growth will prevail and

performs

to our

concepts

forecast

about the American economy is an optimistic one—that
there will be much more growth but also many changes.

iar

^wealthier elements in the population could
far

safest

stand in greater need today of lucid
and courageous application of famil¬

The

time to this activity. We

Calls for utmost in anti-inflation

over.

are

economist

devote

tion. The other general principles laid down by
j;the father of the laissez-faire school of economics,
/i which plainly implied that taxation of the

should not be carried

broad

and that American economists should

-theory that the tax burden should be carried
largely by the wealthy was invoked again and
.^again—an idea which was made popular by Adam

formulates

simple but fundamental.
I hold that
his highest and best function
when applying his craft to the great
issues of public policy in his times,
My theses

the

of the rich. The

at about the time of the birth of this

Council Advisor

theory of creeping inflation, outlines reforms in prin¬
cipal public policy areas, and advocates greater struc¬
tural flexibility in prices and movement of resources as
well as improved monetary and fiscal controls.

Z The often boldly stated thought of Newr Deal¬
ers in the
early days was to the effect that the
poor (or the politically useful) elements in the
population could and should be the recipients of
various benefits at the expense

busi¬
generally hold about the future and stresses the
crucial gravity of the problem of inflation in laying down
a
program to avert the national dangers involved. Mr.
Hoadley's short run view optimistically expects: 3-5%
increased volume of total business over current level,<!'
inflationary lull will continue for next nine to fifteen
months, and a better housing and mortgage market.; !
Mr. Hoadley expresses thankfulness that the general "
public is still not really concerned about, inflation and
skeptically asks how sure are we inflation will not take
nessmen

Jacoby indicts his fellow economists for failing to
their great predecessors' devotion to solving
decisive public policy issues and for not making greater
use of familiar
concepts of economic analysis. Taking
one
problem, the reconciliation of full employment with
a
stable price level in a freely growing economy, the

of life or of imposing taxes
only the rich but the very rank
^and file which are the supposed beneficiaries of
?
largesse — and hurt them in a very direct way
JfWhich can hardly escape popular notice. This is

Industrial economist discusses contradictory views

Dr.

as a way

•>dhe kernel of the innumerable controversies

By WALTER E. HOADLEY, JR.*

emulate

which hurt not

^ Smith

Copy

Treasurer, Armstrong Cork Company, Lancaster, Pa.

University of California, Los Angeles, Calif.

nitely become clear to the thoughtful—that it is
no
longer possible to enlarge so-called welfare
expenditures of government without either adopt¬

Cents

: j

Dean, Graduate School of Business Administration

T/the New Deal. It is becoming clear—it has defi-

ing deficits

Price 50

By NEIL H. JACOBY*

of the economic facts of life into the

some

Thursday, March 121 1959

Will Good Economics Prove

-i)

force

In 2 Sections

Hank of America
NATIONAL si VVng5

ASSOCIATION

300 Montgomery St., Ssn Francises,

Gsfif,-

The Commercial and Financial Chronicle

(1186),

far Banks, Brokers,

The

Dealers only

Try "HANSEATIC"
When it's important to you
reach

markets in

participate and giye their

they to be regarded,

are

private

wire

combined with com¬
plete Over-the-Counter facili¬
ties, enables you to get the
best possible coverage of the
markets you want.

system,

are

120 Broadway, New York 5
Teletype NY 1-40

WOrth 4-2300
BOSTON
PHILADELPHIA

ifrires

•

CHICAGO

•

SAN FRANCISCO

to Principal Cities

INC.

Members

Render

Security Dealers Ass'n

brokerage service

In all Unlisted

v bur. H.
.

Holly, Vice-President
and Secretary, Sage, Rutty &
Co., Rochester, N. Y. (Page 2)

Securities

Steiner; Rouse & Co.
Members New
Members

the

from

came

production

financial

ob¬

additional

Field and from five oil

Raceland
wells

Com-

and

six

wells

gas

the

Ashland-Terrebonne

The

Divi¬

the

two

has

Mobile, Ala.

strong

110

wires

Direct

current

our

branch

offices

long-

large

stock.
year

mineral

1958,

shut-in, gas
wells in the Montegut Field, which
bines the op¬
also contains two producing oil
era t i o ns
of
wells.
The first
gas
w7ell was
both a royalty
dually-completed and the second
company and
an oil com¬
gas well, completed in June, 1958,
tested 6,300 MCF of gas, plus 166
pany. The suc¬
barrels of distillate per day. Roy¬
cess
of these
alty income from this division
operations is
will
be
considerably augmented
G. Shelby Friedrichs
largely deter¬
when these two wells are put into
mined by the
and production.
.
capabilities of management
South Shore has been extremely
While no official reserve esti¬
sion

Shore has

position, with

common

For

com¬

NY 1-1557

New Orleans, La.- Birmingham, Aid

term debt and capitalization cons>sts solely of the o43,139 shares

Valentine Field.

one

HAnover 2-0700

in-

land

ratio of 7.7 to 1. There is

tained from seven oil wells in the

York Stock Exchange'<

American Stock Exchange

Id Rector St., New York 8, N. Y.

very

Shore

Bought—Sold—Quotea

Garlock Packing Company—Wil-

July

ended

31,

m>r

totaled

revenues

JAPANESE "row

increase of 17.2% over
the previous year's revenues of
$681,599. However, reduced oper¬

$798,671,

STOCKSI
-

ating

expenses

raised net income

For

current

$321,647. For the first
quarter of fiscal 1959 ended Oct.
38.8%

Call

31, 1958, earnings per share were

•:?::

information
write

Yamaichi

cents, compared to 13 cents a
a year earlier.
It is my opinion that the poten¬
tial of the employment of this
royalty, income in the building of
oil and gas reserves, under the
fortunate in acquiring the services mates have ever been released; it
direction of capable, aggressiveof Mr. John F. Bricker to head a has been reliably estimatedthat
management, has been underestiwell-balanced management team. the value of the reserves under
mated by investors. I believe that
Mr. Bricker is a highly regarded these royalty lands, net to South
its present market price, the
and widely experienced oil and Shore's interest, approximate $42 common stock of South Shore Oil
land man. After 20 years with a a share on the 543,139 shares pres- anc| Development Company is unmajor oil company as head of the ently outstanding.
dervalued, and offers an attractive
Land Department in the southern
South Shore's great potential for opportunity for capital apprecia-

S. WEINBERG,
GROSSMAN
& CO.

Development Co,

Louisiana Securities

Orleans, La. (Page 2)

distillate, plus 6,000 MCF of gas

Louisiana.

which

Member

Development

day. Based upon official,tests,
the production of gas and distillate from the three wells will in-

such company,

American Stock Exchange

can^^^e^ddjtog

p a n y

Established 1920

Oil

—

few companies crease the royalty income, to South 5
which provide investors with a di- Shore irfl^1Senn^e°rgia ??*V*nS£$ can purchase
rect participation in the potential «outJ125.000 ^nnually. The
of land and oil and gas explora¬ major portion of last year's roy¬ sented. South
alty revenues from this division
tion in south¬
There

op ment

Associate

Oil and

South Shore

Alabama &

Shelby Friedrichs,
Partner,
Howard,
Weil,
Labouisse, Friedrichs & Co., New

barrels of

200

Participants and

Shore

South

per

Oil and Devel¬

Corporation

particular security*

wells tested

these

Friedriclib & Co., New Orleans. La.

South

New York Hanseatic

for favoring

are not intended to be, nor
offer to sell tbe securities discussed.) .3

G. SHELBY FRIEDRICIIS

ern

as an

Partner, Howard, Weil, Labonisse,

nationwide

reasons

(The articles contained in this forum

hurry, you'll find

big help.

Private

Thursday, March 12. 1959

Their Selections

Co.

experienced
trading department can be a
Our

This Week's
Forum

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

In the investment

large and

our

Security I Like Best

A continuous forum in which, each week, a

broad range of active

;) |V A

share earned

Securities

Company'

of New York,
3

Inc.

Affiliate of '^■3""'-^'^■••r'v;

;

Yamaichi Securities Co., Ltd.

Tokyo, Japan
Brokers

111 Broadway,

„

Investment Bankers.

N.Y. 6 COrtlandt 7-5680

for Banks and Dealers
40

Exchange Place, New York 5
rights

Phones WHitehall 3-7830

South Coast,

but also in the-em——'- Viee-Presftlent and Secretary

proved invaluable to South Shore
and the company has made excellent progress since his election as
President in June, 1957.

ployment of

this royalty income

Louisiana

acquir

has

land

Teletype No; NY 1-2762

southern

in purchasing royalty,
fee land interests in
build

Rochester. N. Y.

BONDS

arccJiartod by our
REVIEW m'unique- and
ratio
charts which pinpoint buyiric} oppor¬
tunities' Are you fully -conversant,
with convertible bonds - recognize

attempt v; MemLer National Association of
future/in- V
:;
Securities Dealers

and

reserves

CONVERTIBLE

Sage, Rutty & Company,

mineral and

R.H.M. BOND
invaluable

come.
In this program, South •
«
*
J'\
Shore has been very successful! Of Jne GariocKFacKing uompaiiy .
three prospects drilled, two have
A few weeks ago, the Garlock
46,372 acres located in southern resulted in important discoveries. Packing Company announced that
Louisiana. These mineral rights
One of these discoveries was the they
had been instrumental. in
were
granted to South Shore by Little
Bayou
Pigeon - Field"" in developing a critical insulating
South Shore operates primarily

as a

royalty company, deriving infrom its mineral interests in

come

lOV)*

4? i#-

the South Coast Corporation

Sept.

<£,

12, 2035.

/ IMi

Iberia Parish, where South Shore
has

income from the productiorrof 37

J iia, ^

oR well? and IX
different Helds.

28,

completed

was

solid fuel mis¬

sives"; and it is

Oct.-

this

of distillate

and

bonne

Ashland-Terre-

field and

Division

tatively selected for

the

There

are

wells
South Shore's properties which

shut-in,

awaiting

gas

pipeline

field

(V.T.C.)

on
are

serves

the

prolific

where

Walter C. Gorey Co.
Rus&

Building, San Francisco 4

YUkon 6-2332

Tele. SF1011&1012

producing

System—John

Legg

Company, Baltimore & N.

Y. C.

Troster, Singer

Y. C.

Co., A".

Charenton
Oil

Field,

Company

oil wells

has

South

Shore's property. The latest well
in the Charenton
Field, completed
in October, 1958, tested 193 bar-

Area

reliable

where- South

25% interest in 2,300

first

com e

the

W. H. Holly

and

opera-

oil, plus 1,165 MCF of gas
day.

being tested after
logged multiple sands in
now

of 100 net effective feet.

estimates

the

re-!

placed with Garlock to produce
these critical insulating products,
At present this installation is in
the'development-production state

resulting from the discov-! but Garlock officials state that
they soon" expect to move into full

and

Pigeon Field

terest,
$15

are

per

the

are

Little

Bayoui scale

difficult to make

in the neighborhood Of

It is readilv aooar-'

ent

that, with its small capitalization, additional discoveries have a
considerable

effect

share value of

upon

reserves.

the

per
.

Altogether, South Shore holds
working interests in a totalr of
6,773 acres in Louisiana and 5,398
acres

The

largest

WALL

STREET,'

NEW YORK 5, N. Y

:<'

SUGAR
Raw

—

Refined

—

Liquid
'.far

Exports—Imports—Futures

DIgby 4-2727

•

inS Company has been furnishing
essential products to all kinds of

industries Customers today buy!, mechanical
packings from
Garlock number about 40,000.
Subsidiaries
Gasket

include

Company

the

and

carbon, Inc., both of Camden, New

curities, with which the

company

ownpH

hv n

^ri^kef aJfd

u- S. Gasket and
Continued on page 14

^omtly owned

N.Q.B.
OVER-THE-COUNTER

Fluoro-

area which Transcon-? Shore still
has about $1.5 million'
tmental Gac Pipeline
Company is in cash and U. S. Government se-

completing.

grams as

line to this

now

LAMBORN & CO., Inc.

well

Jersey;
The
Garlock
Packing
Company of Canada, Ltd., MeTexas, plus mineral inand BefThe Georgia Division contains terests in
2,030 acres in Louisiana - chan.lc^1 Leathers Jne.
three shut-in gas wells which will and
4,362 acres in Texas. :,Thes mont ?acimg*
^ u1- <£n~
go into production very
shortly.: acreage in Louisiana was all put-h ^a^
Philadelphia, Pa^,
They will be put on the new pipe-, chased
during
1958
and South'Dealers
Steam Packing
rels of

per
Wire

Fifteen

miles from

of
de¬

new

production for such prothe Navy's ballistic misuntil further development1 work sile known as the Polaris, and the
is done.
However, present est!-- Air ,T Force's
universal missile
mates are that the value of these known as the Minute Man.
reserves,- net to South Shore's in- For 72 years The Garlock PackArea

lies about 2V2

this

eries in the East Golden Meadow

con-

from South Shore. This dis-

Meadow

Parish,

Accurate

Division, Humble
Oil
and
Refining Company
completed a wildcat test as a
shut-in gas distillate well on its
one-fourth royalty lease of 1,192
covery

excess

In the Oaklawn

acres

The

having

nections.

West Coast Life Ins. Co.

"Con;,

Assock
New York 1, N.Y.

growth.

Because

logged* 131 3
tional characgas-distillate terisfics have been improved,
sands and is now awaiting com- Consequently • a number of subpletion. The second well in this stantial. c o n t r a c t s have been

present shut-in

six

^>ena to:

oongauon

net effective feet of

put into production,

now

Golden

acres.

vision. This royalty income should
show a sizable increase in the cur-

wells

ates, 220 Fifth Ave..

portant

siles have be-

Shore holds

gas

j vertibles," Dept.

velop ment

Lafourche

from the Ashland-Terrebonne Di-

States Life Ins. Co.

solid fuel mis¬

East

$514,700—$99,000 from the
Oaklawn Division, $378,000 from
the Georgia Division, and $37,700

['-invite you'to sendibr bur" TREE re,port on "Convertible Bond. Op.po/tu-nities." It is a fulbexpfanatiotj ol
I convertible boifds which cdifprevent
I future missed opportunities for you.,

been^ten-

taled

rent fiscal year, as

new

third well.

During the past fiscal year
which ended July 31,1958, royalty
income from these divisions to-

California Western

location has

be on the

The second discovery was in the

Terrebonne

Parish.

opportunities when they occur?
you to-, the only com-'

introduce

threshold of

The properties are divided into
three general divisions: the Oak-

Parish

company

may

plus 2,400 MCF of gas per day, and
the upper sand tested 318 barrels
of distillate plus 1,060 MCF of gas
lawn Division in St. Mary Parish, per day. A second well is now
the Georgia Division in Lafourche being
dually-completed in this
:

plete investment service covering the
entire field of convertible bonds, we

mere

1958, hi two sands—thsJLowSX^

g&^veUsJn•-€iX^sr,tilested 64 barrels

for

product

25% interest in 3,493 acres?

South Shore receives This well

properties,

until
On these royalty

their
.

2-coJor conversion

INDUSTRIAL STOCK INDEX
20-Year Performance of
35 Industrial Stocks.!
FOLDER

REQUEST

National Quotation Bureau
-

Incorporated

46 Front Street

v«Hr IN*

Volume

189

Number

The Commercial

5828

and

Financial Chronicle

i N d E X

Applying Realism to Investing
In a Revolutionary Era

Taking;

Hoadley, Jr.

Cover

FLOWER SHOW

Will Good Economics Prove to Be Good
Politics?

Co., New York City

—Neil H.

analyzing the upward business trend, Mr. Lurie speaks
realistically on "Why it isn't easy to accumulate wealth in the
securities market." The Wall Street research partner adds the
reminder that we are in a period of unprecedented demand
for and supply of common stock, and that there are important
differences which should prevent another 1932.
Becoming
specific regarding investment advice, Mr. Lurie stresses issues

Jacoby—

at 99 Wall!

______Cover

are

important than

outlook to

ness

Ours

the

most

For

fascinating,

not

in the

—Ira U,

daily

either

iea!
lor

Dra-

a MusiComedy—;

—

even

than

ishow.'S

1 times

hear

;and

sweet

ket—and

nerian

Sidney

empty

Luri#

1;'v:;

'.:''

It's

fascinating too, because the
"people"—all of
us
in this great country—not a
'mysterious "they." Being "peo¬

human^ .frailties:

| x If

doubt -that

you

;

tive

i'lng,

this

the

Proof

Variable Annuities'

each

■

stocks.

the

futile

for

this

soundness
be

can

concerned-about

ital in

possessions.

;

„; •

the finan¬
cial pages,, all America is seeking
t security
in
the.;: Stock
Market.
.'Frankly, some would be better off
in Churchill Downs; at least, they'd
.

mer,
of

To others,
this means the majority of
security buyers, this is a business

hnd

?oTdiligence and. effort.^

missed

you

tripling

- can

.be out in the sunshine.

modate all

There

are

Investing r

why

reasons

%it isn't easy to accumulate wealth
'"iih the securities markets.

But
terest

Attacking Savings Banks

—Grover W. Ensley

specialized in

DIgby 4-4970

1160

Regular Features

Salt

Air
As

See

(Editorial)

Lake

City

last Sumr
opportunity

Bank
v

an-

Business

Dealer-Broker

;

Street

Pacific Uranium

Investment

Recommendations.;

^?^^^om ^lVashiiigton Ahead, of'the JNews—Carlisle Bargeron

indications of Current Business Activity
^ • • •" +
-*
*

+ Mutual
.,

Funds

i.,T

...

37
38

—

___;

Observations—A. Wilfred May..
Our

before

stock-minded

Our

same

47
13

Prospective

Offerings—________

Security

Securities Salesman's Corner
The

addition, more people
are
competing for the

Continued

particupage

Spencer Trask & Co.
York

Stock .Exchange

Market

The

State

and

You—By Wallace Streete.

Chicag#

Schenectady

Glens Falls
Worcester

Yonkers Raceway

16
_________

Permachem
„

of Trade

Industry.

and

—

Corp.

Washington and You„_

36 '

Twice

Reeves Soundcraft

Basic Atomics

Weekly

Company
Reentered

CHRONICLE

FINANCIAL

—

second-class matter Febru¬

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

ary

Reg. U. S. Patent Office
DANA

Park

COMPANV, Publishers

Place, New York 7,

Subscription

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Subscriptions In United States, U.
Possessions,
Territories and
Members
Fan-American Union, $65.00 per year,

REctor 2-9570-to 9576

GEORGE

Editor

MORRISSEY,

DANA

SEIBERT,

President

TELETYPE NY 1-5

Alaska Oil & Mineral

...

Security I Like Best

WILLIAM

ST., NEW YORK 4. N. Y.

TELEPHONE HAnover 2-4300

Uranium

than

merchandise—and

Western Gold &

Registration

The

effect

Chicago

—

Los Angeles

Dallas

Cleveland

PREFERRED STOCKS

Boston

San Francisco

Philadelphia

Securities

Securities Now

wealth.

Utility

Teletype NY 1-1825 & 14844
Direct Wires to

Reporter's Report

25 BROAD

—

Governments

Railroad Securities

history.
In other
words, industry is not tapping our
accumulated,
and
accumulating,
ever

Reporter

Public

inc.

40 Exchange Place, N. Y.

HA 2-9000

mackie,

News About Banks and Bankers

Singer, Bean

1—

NSTA'Notes

*evcr

known;

Handley Hardware

12
_

The COMMERCIAL and

New

IVIoore

Einzig: "American Interest in British Equities"

...

has

i'i__I_

Bookshelf____i_'_

„

which may be a key to the biggest
Wall

Stocks__i

Insurance

Man's

^Coming*Events in the Investment Field__

ihAmerL'
,

and

you

American Dryer

Members

Springs

Cover

JCY

Pantasote

this

Nashville

NYSE Revises Commission Schedule...

WILLIAM

Albany

Teletype:

City Stock Exch.

Exchange PI., Jersey City

American Stock Exchange to Revise Commissions.

Published

For many years we

J.F.Reilly&Co.,Inc,

Direct wires to Denver A

I'll bow to the popular .inin generalities with a,few

Market

(2)
1
*From a talk by Mr. Lurie before the
Management and Business Forum, Uni¬
versity of Louisville, sponsored by Stein
Bros. & Boyce, March 4, 1959.

have

Banks Err in

Bankers Trust Co. Study

the :Aver- '

your money

Motors.

become

several

Commercial

Record Credit Demands Foreseen by Roy L. Reierson in

fact that the American Public has

us.

Provides Reality

PAPER
14

(1), We're living in an era of '
unprecedentCd-supply-demand.
equation. Last year, for example,
sense—a
business
whichL repreonly $1.3 billion of new common
jsents an applied, intuitive art. It stocks were issued
by American
lis' not.an inexact science —or a'
^business where the key to suc¬ Industry — as compared with ah
average of $2.3 billion in the pre¬
cess is the ability to read or mul¬
vious three years.
This is far be¬
tiply.
If it were easy to get fat
low
the
Nation's
net • savings— :
'financially, there would not; be
which are being magnified by the
enough reducing salons to accom¬
Wall Street "is"" a*
business of common

me,
a

Opponents Oppose Sharing U. S. Growth

Members Salt Lake

Raytheon."(3) If Chrysler's

problems bothered

,Today, to ?judge by

—

FT. WAYNE
14

almost

found

were

tians sought security in the Here-

Believe

DES1LU
PRODUCTIONS

requires

1957-58, you missed ; an,
opportunity to quadruple your
capital in Lorillard. i(2) If £you

jectives. For example, the Egyp¬

^business

a'Hedge Against Inflation

—Marcus Nadler

last

^ after ,;by. being buried with food ages, last Spring,1 you missed, aft
i and jewels as well as their per¬ opportunity to double your cap¬

-A. W. Zelomek__

ques¬

day.

ter

sonal

BOBBIE BROOKS

Why the Federal Reserve Urgently Requires More Powers

Let me refresh your
with a few. illustrations.
(1) If you were bearish in the Win¬

5 3Each? 'howev&rv7lias his pwn ;way
of attempting to attain these ob¬

memory

clothand* : security.

sex

ASSOCIATES

VERTOL AIRCRAFT
Where

intelligent

individual stock

an
—

the

observation

search:for. food,

shelter,

ACOUSTICA
6

___.

:v+-Garrol M. Shanks-

knowledge and should be the end
of a never-ending process
comparative evaluation.

urges-which motivate man's

actions:

about

earth," just
j think of the ^primary and primi.•

CORRUGATED

Mar¬

Stock

most

Dept.

STREET, NEW YORK

result

'greed, stupidity, etc.

]"greatest 'show

WALL

Telephone: WHitehall 4-6551

>:+—rRoger W. Babson

mass

emphasize

the

intelligently

fear,

Van Cleave

It's Illogical to Buy Stocks

rather

nothing

individual

hand for obsoletes!

people talk about the Mar¬

talk

rA-Changing America and the Stock Market-

that it is easy to quote the
headlines.
It's difficult, however,

ple," -..the marketreflects, all the

"Billion Dollar Bundle"

Prospects for Housing in 1959—Robinson Newcomb_.

ket is

nil;, . the

enough

want

reason

j'"'•/.•>'

1959: A Year of Restraint—John L. Rowe

tion in the world is "What do you
think of the Market?" The only

Stock.Market is

business of specifics—not

/"•

where

about

the

about
not

point—for

play

house.

;

some¬

times

.}+-—Robert

generalizations.

opera

—and

This is

Wag¬

can

discussion

^ music—some¬

times

talk

loose

words

—Roger M. Blough

hysteria—except take advantage
of it.
Thirdly, there's too much

o me-

soft

and

you

] Burlesque

There

and

plant cash

Obsolete Securities
'1

What Government Securities in
Savings Association Portfolio?

Street

emotions

intellect.

and

business

their

sunshine

4
•

—

with

act

in your

Cobleigh

The Steel Industry and

4.
Timing is
and the anticipation
can
be greater than the realiza¬
tion.
Secondly, all too often, and
we're seeing it today when the
space stocks are in orbit, people

important

represe nts

;ma

obvious

all

when

roses

V;''VI--:

2+2 always equal

It's exciting, because the Stock
Market

Wall

thing,

one

Texas Eastern Transmission Corporation: Prosperous
Pipeline

suggests seeking values in oils, textiles, metals, and names
several firms to illustrate other advice given.

!the most exciting business
world.

Revolutionary Era

—Sidney B. Lurie_

expects real test of busi¬

averages;

between second and third quarters;

occur

It'll

Applying Realism to Investing in

ACS OOKFAKY

mmmmm

Real Look Ahead—Walter E.

Page

Before

•

LicHTtnsmn

B. So

Articles and News

By SIDNEY B. LURIE*
Research Partner, Josephthal &

(1187)** 3

Thursday, March

12,

Dominion

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

vertising

Other

Chicago

Thursday

i general

Offices.

135

South

W? V. FRANKEL & CO.
INCORPORATED

39 BROADWAY. NEW YORK 8

Publications

WHitehall

S-3960

news

issue)

3,* ZH.

year

1959

and ad¬
and every Monday (com¬
plete statistical issue —market quotation
records
corporation news bank clearings
state and
city news. etc.).
Every

8
ir

Salle

St..

(Telephone STate 2-0613).

Bank

and

Quotation

$45.00 per year
Note—On

the.

rate

foreign

Record

—

Monthly

(Foreign Postage extra

account

of the

fluctuations

Direct

1-4040
W rr.

dk 4041
Cm

exchange,
remittances
foi
subscriptions and
advertisements

must be made In New York funds.

Teletype

PHILADELPHIA

Chronicle

The Commercial and Financial

Thursday, March 12, 1959

(1188)

this session, much encouragement

Texas Eastern Transmission

Corporation—Prosperous Pipeline
By

DR.

IRA

COBLEIGII

12 years

has become

of Texas Eastern is a

saga

corporate

romance

magnitude.

of the first
well known,

during World War II deliveries of
foreign oil to
o u r
shores,
through subinfested

created

seas,
a

for

prolit-laden $800 million transporter

of invisible
The

year,

in just

crit¬

structure

Financial

Texas

affords considerable

lev¬

erage
for Common stockholders
the long cylin¬ since debt comprises 66.2%
of
drical snakes of gas had to go all capitalization,
preferred
stock

and

compressors

FITTING

THE

THE
The
rate

raising of the discount
four
Federal
Reserve

supplies

event

typical

which

the

pressure.

There's

need

detail too
from that

precisely, expansion
point.
Compressor stations were
built; capacities were constantly
expanded; and in 1951 a new 30
inch line was constructed along a
tlevv route from Kosciusko, Miss.,

year-end

1958

the

ular

course

pany's natural gas reserves at the
prices that
year-end stood
at ; $13 trillion
has" followed
cubic
feet,
with
i trillion ci.
ply.
So the
the
event.
to Pittsburgh, Pa., at which point added in 1958 by the purchase of
government
Thus, a bullish
lit joined the older lines across the Rayne Gas Field in Southern
acted. It built,
construction
Pennsylvania
and New Jersey. Louisiana. Of total gas transport¬
in 14 months,
can
be, and
Finally a 30 inch line was extend¬ ed in 1958, 43% came from Texas,
the
famous
has been, put
ed South from Beaumont, Texas 10%
from Louisiana,
8% from
Big Inch (24,
A. Wilfred May
on
the
latest
nto Mexico to tap the rich re¬ fields elsewhere,. and 37% from
inches in di¬
money hike
serves of natural gas in that area,
ameter 'actu¬
pipeline purchases." The balance
on the ground that it implies the
v; With the bigger diameter lines was company-owned gas.
ally) pipeline
Ira U. Cobleifh
authorities'
confidence
in
the
serving the expanding gas re¬
The expansion, which has been
from
Longbusiness situation, with a curb to
quirements so effectively, it was characteristic of Texas Eastern
view,
Texas
boom activity being in order.
In
to the East Coast.
The line had a decided last year, with the approv¬ since it was formed, has made
the same "bullish" vein, the rise in
through-put capacity of 300,000 al of the Federal Power Com¬ necessary an almost continuous
the rate can be looked on as proof
barrels of crude a day—equal to mission, to reconvert Little Big program
of financing.
In 1958 that the
4,700,000 of still unem¬
Inch back to its original use—oil. Texas Eastern sold $85 million in
25,000 fully loaded railway tank
ployed do not worry the author¬
ears.
A
single
line
was
not So now for 1,179 miles, from Bay- securities. The indicated program
ities—in line with Reserve Board
enough. A second one was needed town, Texas, to Moundsville, West for this year includes the raising
Governor Szymczak's shortly pre¬
for
transmission of refined pe¬ Virigina, and with an intercon¬ of more than $55 million in new
ceding statement indicating that
troleum products; so
Little Big nection to Chicago and the Mid¬ money, and, depending on market it was the
high level of unem¬
the smallest bore unit is conditions and money rates, $30
Inch was built following, for the west,
delivering refined petroleum million additional for the reduc¬ ployment that during the preced¬
most part, the same route as its
ing week had been keeping the
tion of bank loans.
Big Brother.
This line was a 20 products.
Board from following a more re¬
The
inch one. with a capacity 20%
On the supply side, Texas East¬
magnitude
of
company
strictive policy.
less. These two Inches performed ern acquired, in 1957. La Gloria operations
is indicated by
its
Conversely, the rate rise can be
a
remarkable and indispensable Oil and Gas Company with a large long-term contracts to sell to 67
looked
on
as
a
bearish market
14 states. Ninetyservice in
the
war;
but when modern refinery in Tyler, Texas, customers in
factor in implying a curb on mar¬
peace
came
and foreign crudes a large gas processing plant, and three per cent of daily sales vol¬ ket
speculation, on business activ¬
could
again enter Eastern sea¬ owning extensive oil and gas pro¬ ume however, was delivered last
ity, on small home buying, as well
board ports without either convoy duction
in Oklahoma, Louisiana year in Ohio, Pennsylvania, New
as on inflation—the impact on the
or
Jersey and New York.
peril, the lines delivered far and Texas.
latter being accentuated by the
In the postwar era one of the
more
crude than could possibly
As to markets, they are in the
avowed purpose of the help to the
be effectively used.
most satisfactory investment ve¬
And, essen¬ Midwest, Eastern Seaboard and in
Treasury in financing the debt
tially, the government did not be¬ New England (served through Al¬ hicles has been the common stock
outside the banking system.
long In the oil transport business gonquin Gas Transmission Co. in of a well managed pipeline com¬
The
political temperature of
which Texas Eastern has a 28% pany.
anyway. Labor costs take a very the war crisis over Berlin like¬
At this juncture a group of men stock
interest.)
Gas is sold to small percentage of gross; pipe¬
wise
bids fair to lend itself to
with vision, under the leadership large distributing utilities which line maintenance is far less costly
"double interpretation." At times
of a petroleum engineer, Mr. E. in
turn, deliver to residential, a proposition than for example
of war scare, when markets are
Holley Poe developed a plan to fi¬ commercial and industrial6 users. maintenance of a railway rightrising, it is explained as an in¬
nance the purchase of these lines
Natural gas now provides home of-way; and demand for natural
flationary force; whereas in the
which might perform a great eco¬ heating for more than 25 million gas has been one continuous eager
event
of
market decline, the
nomic function if they switched Americans;
and
Texas
Eastern up-curve. The lion's share of new
"obvious" threat to earnings and
from crude to natural gas deliv¬
supplies, at wholesale, an im¬ home heating is going to natural
perhaps
the
entire
capitalistic
ery. Natural gas was in great sur¬ portant segment of this vast and gas; and those who have used it
system is fastened on.
are spoiled for any other fuel.
plus in Texas, but had a huge expanding market.
The recent 1958 report of Texas
market
waiting
for
it
in the
Texas Eastern has enjoyed these
Northeast.
All that was needed Eastern makes splendid
reading advantages to the full.
It has
THAT INSTITUTIONAL
for its stockholders.
was
In a
ical

problem

vital

sup¬

transportation.

year

carved
out, in only 12 years, a1
thinking Texas when
many
lines
of endeavor
major place for itself in American
Eastern Transmission Corporation were in a slump, Texas Eastern
industry.
At 343/2 today (over
was
born.
The
aforementioned moved ahead to new highs in the
counter), Texas Eastern com¬
group - (in * competition
with 13 gross and net. Consolidated oper¬ mon
represents
an
interesting
revenues
advanced
16%
others) made a bid to purchase ating
value, provides a 4% yield (which
these pipelines from the govern¬ over 1957 to $266.5 million; while
a higher cash dividend could im¬
rose
to
ment.
Their bid of $143,127,000 net
$25,619,912 against
prove) and an equity with a rec¬
was the highest, and actually just
$24,918,376 for the preceding year. ord of remarkable
growth and
about what it had cost its govern¬ This worked out to $2.33 per share
generous stock dividends in
the
ment
to
build
the
lines.
The on the 8,606,383 shares of com¬
past. Texas Eastern is a convert¬
properties acquired by the new mon outstanding.
ible pipeline delivering, on a big
While
the
corporation were 3,182 miles of
Congress
has not
scale—gas, oil and profits.
pipeline and 1,993 miles of right- passed a natural gas bill and gives
of-way.
At first there were no no promise at all of doing so in

From this sound

Cowea i Co. Will
■&%

r,?

Complete Investment Service
UNDERWRITES * BROKERS

* DEALERS

•

DISTRIBUTORS

New
New

:fy

-•>*—

April

York
York

Co.,
Stock

anticipating

Street,

Exchange,

admit

of the stock

the long-term
market, great

expectations are of course based
on
the growing participation by
institutional
course

The

investors.

the

past

equity holdings by

various investor categories shows

great divergence. Thus (consistent
with

previous Securities and Ex¬
change Commission
surveys)
a
new
study
by
the
Bankers
Trust Company discloses that of
various classes of nonbanking in¬
stitutions, life insurance com¬

since

54 Pine

City, members of the

will

future

panies, mutual savings banks, and
fire and casualty companies have

Admit Partners
Cowen

FILLIP TO THE MARKET

Arthur

1952

common-

The big

part

not

stock

their

increased

holdings

all.

rise has occurred on the

corporate

pension

$500 million

the

funds, from

to $1.2

to the common stock?

what

suited
partic¬

the

categories
join in the obPi-

later

sance

chosen

being

was

the Com¬

side,

sooner

— with
interpre¬

tation

Will the presently back¬

institutional

ward

ways

the

to mind.

in¬

alternative

$1.40 per share is handsomely

value

mar¬

can

terpret in two

covered by current earnings. Book

$17.54 per share.
On the supply

"exter¬

stock

ket

from Texas to Staten Is¬ 14.1% leaving 19.7% for the Com¬
The present dividend rate
propelled only by original mon.

land,
field

1958, and with a further
$1.6 billion expected in
1959; with the other investor cate¬
gories anticipated to remain un¬
changed from 1958. Two questions
about the long-term future come
rise

new

Banks

nal"

billion in

NEWS

MARKET

the way

By A. WILFRED MAY

and act upon, during this
Texas Eastern's application
higher rate structure.

Eastern

freight.

Observations

ruling of a lower court. This fa¬
vorable legal ruling should permit

hear,

look at this remarkable enterprise, which

current

the

industry

the

the Federal Power Commission

Enterprise Economist

given

was

Supreme Court decision of Dec. 5,
1958, which, in effect, reversed
the
so-called
''Memphis
Case"

would

the

Shirk

be offset by a

.'A:;

•

Continued

loyalty to-the Blue
Chips is shown in the operations
of
the
Ford
Foundation's port¬
folio.

with

value,

&Co.

CINCINNATI, Ohio

Members
New York Stock

Exchange • Pacific Coast Stock Exchange
Exchange • American Stock Exchange
Exchange ' Chicago Board of Trade
and other leading commodity exchanges

Midwest Stock

Honolulu Stock
Private leased
'

radiotelegraph

circuit to Honolulu

SAN

FRANCISCO

•

LOS

ANGELES

39 Offices

•

NEW

YORK

Serving Investors

Clark Admit to Firm
—

market
THE EX¬

Magazine, are U. S.
General Electric,
T., and International

I. B. M.,

Nickel.

Disregard
tainties

industry

when

by
Chip companies is disclosed
by the portfolio operations of the
college endowment funds. Har¬
vard, Yale, Princeton and Colum¬

bia

continued

have

stantial

stock

additions

making

the disolution of their

year

for

this industry accounted

the largest blocks
other. Such persis¬
tent popularity of Blue Chip pe¬
troleums has likewise persisted in

than did

the

any

portfolio policies of the

OF THE

GUTERMA NOTE
WEEK
latest

The

development in the
Guterma, Federal
Court Judge Sugarman's refusal
to-order receivership for the F. L.
Jacobs Company, irrespective of
its legal merits is constructive; in¬
vestment-wise.
It
exhibits
this
celebre

cause

court's
rank

concern for the
of
shareholders,

primary
file

and

along with the employees, irre¬
spective of possible malfeasance
of the accused individual.

surely is the most articulate of
the
prominent . financiers w h o
have

into

publicized
"performance" last

come

His

trouble.
in

week

half-hour .dissertation

to the press

office

was

—violent

his

Wels,

conference in the
Richard H.

lawyer,

forensic masterpiece

dramatically

invective

coupled with outraged martydom,

with

interspersed

detail—all

factual

poraneously
of

ance

perhaps

ability

when

tage

the

benefit
appear¬

shrewdness

and

his

appearing

jury?.

CHICAGO

York

been admitted to

general partner¬

ship in Scudder, Stevens & Clark,

Tel:

3-8880
Private

LTD.

A.D.R.

(looted

Stock

Exchange

St., New York 5

System

working
disadvan¬
before
.

Teletype NY
Wire

extem¬

Will this

kick .back

psychologically

Canada

1-4686

wealth

given

without

single note.

Thomas C. Haydock, Frank Pea-

body and Frank M. Hawley have
•

New

It is to

hoped that this decision will
set a precedent in avoiding need¬
less receiverships.
Whatever else may be thought
of
Alexander
L. -Guterma,
he
be

Alfred L. Vanden Broeck & Co.
Members:

mu¬

tual funds.

bought— Sold

55 Liberty

oil

holdings, and at the end of

last

Haydock,

partnership.

sub¬

their

■

uncer¬

encountered

Blue

BEECTTAM GROUP

Peabody & Hawley has announced

resident in Cincinnati.

stock

common'

the. highest

reported

CHANGE

Steel,
A.

five

The

blocks

partnership.

Scudder, Stevens &
Dean Witter

lower market level's

scious?

For Hanks, brokers mul Dealers

increased appeal to the value con¬

Arnold, Edward Elkan and Joseph

mmm

And

effect

major market break; — would it
permanently scare off the burned
"J otin n y-come-latelys"
as
the
pension funds ;. or, on the other
hand, would such disillusionment

;

Volume

189

Number 5828

(1189)

The Commercial and Financial Chronicle

directly upon

survive depended so
Steel

The',.'

-■r-

The Sted

Production

Electric Output

State of Trade

Trade

Industry

Business Failures

per

In its monthly review, "Business Conditions," the Bank terms,
increasing steel output the most dramatic industrial development
of recent weeks.

Production in November and December

was

"haggling" over pennies in steel labor negotiaimportance by pointing out that a one cent
hour increase adds $15 million to industry's direct em¬

■

tions is of little

the current industrial scene as most sectors
of business activity continue to push toward new
highs, says the
Federal Reserve Bank of Chicago. "
dominates

ployment cost and a similar sum to indirect employment cost,
adding a total of $30 million to the inflationary spiral. He lays
stress on the inflationary effect of unearned wage cost rise;

50% from April lows and had gained another 20% by February,

claims steel's

M In mid-February, the Bank adds, output was only slightly
under the previous high in early 1956. However, steel mills still
were
running an estimated 14% below capacity, reflecting the
expansion of facilities in recent years. In the Midwest, some firms

17 years

employment costs rose 7.6% in each of the past
whereas output per manhour gained 2.6% per year;
compares declining after-tax profits with increasing wages;

.■"v.

reveals pressures on

check

;

operating practically at capacity and most types of steel are
again on "informal allocation."
are

share of

steel when it accepted strikes "to help
wage-cost inflation"; and cites his firm's declining:
total output to underscore extent of increased indus-

sale

Two factors contributing to the

rapid rise in steel demand are
supply current requirements of steel processing firms
build up inventories against the possibility of a
strike mid-year.
Reduction in steel inventories, begun in March, 1957, have
just come to a halt, says the Bank, and rapidly filling order books
indicate a probable rise in inventories through the second quarter.
Elsewhere on the economic scene, personal income, retail
trade and construction had reached new highs in the early months
of

1959, while industrial production, corporate profits, business

filled

doubt, for example,
iron

mines

if: Minnesota's

the most Economical source

supply for all of the steel mills
America, employment on the
Range would increase sub¬
stantially. And if Minnesota ores
could undersell their competitors
in foreign markets generally, the

Iron

The steel head asks labor to ponder the con¬
of extending "billion-dollar bundle" demanded to the
entire labor force—raising national wages $52 billion. Warns
that only public opinion can stop wage inflation at its source.
United

markets.

world

Over the years, we of
States Steel have suffered

that

sequences

upon

were

;

try competition.

and the push to

enjoyed

war

There is no

the need to

leadership

has

America

centering more and
the battlefield of in¬
dustrial production. But to call it
merely a war of production is to
miss the point.
It is primarily a
war
of productivity—a struggle
on the part
of every company,
;£Very industry and every nation
to become the low-cost producer
of the things which it offers for
cold

of the June 30 cut-off date, Mr. Blough refutes

aware

the belief that

'■yi js&teet

Today the industrial

Chairman, Board of Directors, United States Steel Corporation

Quite

and

throughout the present century
is being challenged by nations all
over the world and on both sides
of the Iron Curtain. The so-called

By ROGER M. BLOUGII*

Index

Auto Production

to compete on ,a na¬
international scale.

ability

which

Commodity Price Index
Food Price

and

Industry and

A "Billion Dollar Bnndle"

Carloadings
Retail

his

tional

Iron
The

would be .booming.
thing is true of steel

Range
same

and almost any

with

other product

you

questions pressing can name..
*;
only an informed
So over the years, American in¬
itable hailstorm of "sugar pills" people can hope to come up with
dustrial management has striven
that have been aimed in our di¬ the right answers in a Republic
in every conceivable way to in¬
rection
such as ours.
by a
crease
its
productive efficiency
n u m b er
of
So
I, for one, am devoutly and cut down its
operating costs.
thankful for the power and the
self-appointed
In its laboratories and its factories,
freedom of the press in America
critics.
It
is
it has devised and developed ma¬
—a
press which has the energy,
true, of course,
chines which have mifltiplied the
that n o n e of
initiative, enterprise and integrity
output of its workers enormously.
these critics,
to
search every
corner
of the It
has discovered and installed the
world for meaningful
so far as I can
news,
techniques of mass production. It
whether it be good or bad, to re¬
recall, ever
has streamlined its organization
accused us of
port that news honestly and fully, and has hammered
away at meth¬
to comment upon it intelligently,
being power¬
ods improvement and cost reduc¬
and thus to maintain in this coun¬
less. Converse¬
tion programs until it would seem
try of ours an informed and en¬
ly, they have
that there is almost nothing left
lightened citizenry.
sought, with
in this field to hammer—although
That, as i see it, is the great,
great unanim¬
there is still a plenty.
unchallenged power of the free
ity, to p r o v e
American press.
Roger M. Blough
And since the
that we pos¬
Inevitable Harvest of Inflation
power to provoke thought is vast¬
sessed some
Yes, it has done everything in
ly more important than the power
vast,
mysterious
and
unhappy
the book, and has even rewritten
power to crush our competitors
Yet 311 theeconomies
and thus to work great evil upon
effected so steadily in
society. So I have had frequent survival.
the costs that it could control have
The production problems which
occasions to ponder,
at length,
not balanced out the rising? costs
this question of power — or the beset us are not merely local. that lie
beyond its: control.
And
They are not unique to Minnesota, so
lack of it; and it has always puz¬
today we see our production
nor to the mining industry. Actu¬
zled me. : >/■
;;
costs mounting on .every side; we
ally, they resolve themselves into see
It just happens that in 1901 —
prices rising as a result; and
one, basic economic problem that
we see many of the products of
the first year of its existence —
confronts every industry in every
our
United" States Steel produced about
foreign competitors under¬
state of the nation, and in pations
two-thirds of all the steel that was
seiiing ours—not only in markets
across the world.
made in America—in other words,
abroad, but, often here at home.
And that problem is to keep
twice as much as all of its com¬
In short we see-the inevitable
our production costs
competitive
petitors put together. But last
harvest of inflation!
with
those
of ' other
producers
a

ver¬

for

answers.

And

investment and employment all were rising.

Employment in the Midwest is gradually tightening despite
continuing problems in some areas, says the Bank, though the
rate of rise is slower than in i sales and industrial production.
Since July, 1958, 10 of

the District's 20 major labor markets have
improvement.
MyV
Total business inventories rose late in 1958 for the first time
since August, 1957, thanks to a sizable boost in stocks of auto
dealers.
Other inventories actually declined slightly in Novem¬
ber and December as sales exceeded output.
A continued accu¬
mulation of inventories would be an important factor in output
and employment in the coming months.
;
Retail trade in January equalled the record 17.6 billion level
shown substantial

established

December

and

recent

department store reports
Automobile sales, which
kept total retail volume in 1958 from surpassing 1957 levels, al¬
though much improved, still were a question mark early in 1959.
The dollar volume of sales of automotive stores in January
appears to have topped January, 1957, the previous high, but this
indicate

of the

in February.

same

includes sales of used and

aged 16,500 deliveries

foreign cars. In January dealers aver¬
day to customers, 13% better than a year

earlier but far below the three previous years.

Nationwide Bank
V- Bank
with

Clearings Up 3.5% Again March 7tli Week

clearings

year ago.

this week will show

increase

compared

Preliminary figures compiled by the "Chronicle"

biased upon

telegraphic advices from the chief cities of the coun¬
try, indicate that for the week ended Saturday, March 7, clearings
for all cities of the United States for which it is possible to obtain weekly clearings will be 3.5% above those of the corresponding'
last year.
Our preliminary totals stand at $24,770,604,106
against $23,941,667,671 for the same week in 1958. Our compara¬

Week

tive summary for the week ended March 7 at the

principal

money

centers follows:

•

1959
New York

1,296,056,122
*1,075,000,009
749,060,622

•

1,115,518,656

/- 1,023,000,000
693,727,274

year, our company

28%

produced only

of America's

3.1
+16.2
-f 5.1
-f 8.0
+

■

.....

♦Estimated.

ever

Unemployment Insurance Claims Down 14%

find it, I know exactly what
do with it. I want to

want to

Initial-claims for unemployment insurance fell 14% during
the week ended Feb. 14, according to Dun &
Bradstreet, Inc.

haps
for

—

there

Now

both here and abroad.

steel; and our
You know this era that we livecompetitors turned out more than
in has been called the
Atomic
2Mi times as much as we did.
Age, the Space Age, and by many
So you will understand my nat¬
similarly imaginative* titles; but
ural desire to get my hands on
economic historians of the future
this enormous power-that we are
supposed to have; because if I may call it—more correctly per-

$13,454,534,201' $13,054,055,957

Chicago
Philadelphia
Boston

1958

„

for

was

Lincoln's

due to the

Birthday

closing of local offices in many states
as to fewer layoffs in the trans-

well

Continued

page

SMaS;
Jones

and

adherents- of this school believe—

sincerely, .1 ■ aimsure1—thatuif govwill just quit worrying
about the deficits which; are one
ernment

the Age of Competition; of the major sources of inflation,

never

will

before in history, prob-

spend

its

ours

who

such

have

heights

been

since

Living in ignorance, as a solu¬
to all of the problems that
confront us daily in the headlines,
sometimes sounds mighty appeal¬
ing; and despite the rising circu¬
lation of newspapers, I suppose
that a great many of us would
welcome escape from the tidings
they so often bring. With pressures
and tensions building up on every
side of us, we wish perhaps that
we
might forget the news and
seek some quiet wilderness where
we could commune, in peace, with
.•

KENNETH W. CARLSTEDT
is

now
as

associated with
manager

our

Collateral Loan Department

nature.

Servicing Banks, Brokers, Dealers and Individuals

Amos Treat & Co., Inc.

"commune"

even

has

lost

that
its

MEMBERS

can

NEW

STOCK

YORK
AND

STOCK

EXCHANGE AND

COMMODITY EXCHANGES

BROADWAY, NEW YORK 6

are

pleased to

announce that

SCHROEDER

BOULTON

word
has

restful

been

admitted to the firm

GENERAL PARTNER

CHARGE OF RESEARCH

attest.

is too demanding.

offices

BOwling Green 9-2520
♦An address by Mr. Blough before the
annual meeting of the Minnesota Edi¬
torial

Associatidn,

Minneapolis,

Co.

11 5

No; today there is no escape—
beckoning Walden.
news

THE

LEADING

OTHER

The

St., New York 5, N. Y.

But

established 1091

magic. Today it is usually used as
a
noun
that depicts only terror,
oppression and the degradation of
human life—as millions of people
in China

79 Wall

Goodbody

tion

announcing that

"crushed"

of success

U. S. Steel was born!

We take pleasure in

of'.man

abiUty

ab^> has

Laughlin and one or
competitors of

two hundred other
to

Minn.

sent answer-to our problems. The-

The decline

school

thought, of course, which holds
that inflation is a kind of Heaven-

march

1959

cities

borrowed

€

The Commercial and Financial Chronicle

(1190)

I choose to

What Government Securities in

Savings Association Portfolio?
By ROBERT VAN CLEAVE*
Vice-President, Research, C. F. Childs and Company
New

York

City

1959, according to Mr. Van Cleave, can
(1) a rising demand for money
prompted by over-all rise in GNP; (2) increased reliance upon
commercial banks by Treasury and private borrowers leading
to substantial bank credit expansion marked by increases in
both securities and loans; and (3) rising yield trend in all
be

expected

maturities with
ment

sharper escalation in

expert cannot

money

how the Treasury

see

avoid unpleasant

can

buy

short-term

prudent

course

Likewise,

the groundwork for

lay

about

what

invest¬

The

business

and

Different people can look at the
statistics and arrive at dif¬

ferent

likely to

conclusions.

there is

pre¬

vail in the re¬

about

all

know

great deal of skepticism

the

derly
proce¬
dure suggests,

ability of the current
upswing to carry on;
there is a pronounced tendency to
depreciate a rise of "only" one
point in the production index, and
to be disappointed because early

first,

sales

mainder

this

economic

year,
An
or¬

1959.

look

the

overall

economic pic¬
ture.
This
I

Robert Van Cleave

statement of assumptions.

record

not

sales

year

argue

yet a strong upsurge in business
inventories and in capital spend¬

Second, the problems and difficul¬
ties of the Federal Treasury need
attention, and third, the probable
attitude

new

gloomily that because there is not

lightly, at¬
tempting
hardly
more
a

automobiles

new

exceeding that of 1955; to

shall skim

than

suggest

the

Federal

ing plans there is

"zip" to the
recovery, which consequently is
likely to fall flat and Jtip us into
recession

new

immedi¬

ately. Such questioning is fairly
typical, in the early stages of re¬
covery.
It reflects, also, the typi¬

Reserve

cal

American

System in the light of the first
two points.
These will set the
background for the expectable

records

movements

daily

businessman

interest

rates,

which will be the fourth item, and

unsatisfactory.

finally, the question of what will

some

been

appropriate

securities

in¬

*An address by Mr. Van Cleave before

weekly,

years

asked

dlistl'y
he

conditions

Sam

said

ago

about

the

situation.

1 d

are

w y n

have

movie

in-

"It's terrible,"

moaned> "ifs "<*

even

colos-

sal!"

1959.

for other, months.
It

hardly

that

seven-foot

need

pointed out
only
com¬

be
be

and get it stalled

last-half refunding, which already

has mounted to nearly $24 billion.
The cash deficit for that period,

tated

bank

the

indexes

by System action last

take

State and

redemption of savings bonds.
Some persons rely upon the

large savings; he

justed rose 3.8%, while time de-;
posits rose 10.3%. This latter item". /
hardly can be ragarded as stable.
distribution

The
ated

deposits

of newly erebetween demand

will

those of the

Federal Government

will at

ther,

least hold steady.

even

latter

increase,;.; and

slower,

think

A fur¬

rise

the

probable.
Inventory accumulation has re¬
placed decumulation, even if it
is

not

yet

business

and

equipment

average
years.

practically reversed the
experience of the last ten;
Roughly
speaking,
new
in

credit

those

years

in
a

also

view

for

turned

corner.

GNP

has

in: terms

peared about 60% in the form of
demand

deposits and 40%

tributed

accordance

with

leveling

perhaps

or even

dip

in the third, and
upturn in the fourth.
All this

lor

implies

money,

from

of their pres¬

some

their

rises.

Then

the

borrowings

stronger

need

for

temporary
successfully placed

outside the commercial banks last

will have to be done all

year

rising demand
all

borrowers.

classes/ of again.

V- /Z/Z,\

over

■/?;■;/.;,/>

/ / Thus I think we must expect a
heavy reliance upon commercial

Treasury Problems

banks this year,

by the

Treasury,

Whatever may be the prospects Zby local governments, and by pri¬
for a balanced budget in fiscal vate borrowers. This inescapably

expansion this year in
1960, they have nothing to do with
probelms immediately facing •/total bank credit;*of 'substantial
Treasury management in the pres¬ proportions. . < r •/•,
In 1955, a previous year of busi¬
ent calendar year.
In
large part these problems ness recovery, the expansion of
credit
result from decisions made in the bank
accompanying
the
past, and one of the so far un¬ cyclical upswing was offset to an
answered questions is whether de¬
important degree by the sale by
means

the

their loan portfolios

round

numbers, their scholdings went down a lit¬
tle
more
than $7
billion while
loans were rising about $12 bil¬
lion; thus limiting the total expansion to about $5 billion. On a

curities

chart

There

•

this

be clearly seen as
representing securities
and loans diverged steadily, with
the first going down
while the
second went up. •' This year it is

the

can

lines

feared

both

will

rise

to¬

gether, and thus the inflationary
potential of a further expansion
of money

•

This is

the

Reserve

Policy

able

circumstances

1959.

price-inflation]'

thority is investing $40 million
next three years

for

watt-hour

a year

for the

were

Power
more

sales

new

construction. Kilo¬

the Authority for 1958
higher than five years ago.
consumption in Puerto Rico is now
per cent

than 1.3 billion kilowatt-hours

The

Authority's

program

includes

year.
a

new

165,000 kilowatt steam-electric Station

now

under

construction

San

Juan,

which

ultimate capacity of 1,000,000

tion at Mayaguez will have two

new

"offset"
serve

gold losses by cutting re¬
requirements and by buying

securities in the open

such

year

market. This

course

seem

may

much less
risk
the

justifiable. There is the
it would only confirm
foreign expectation of infla¬

A second 44,000 kilowatt unit

the

South

Coast

Station

was

tion here, and
outflow.

thus accelerate the *

Considering both domestic and
factors,
therefore, //it
seems
to me likely the Federal
Reserve
System hardly will be
able to view with equanimity an
expansion of bank credit of the
external

size

that

seems

now

prosnect. '

Some expansion of course will be

unavoidable

Treasury needs

—

must be met, as

must also the sea¬
requirements of business.
growth requirement,
however, already may have been
provided for in last year's expan¬
sion of money supply: Indeed, one
gets the impression that some Re¬
sonal

The business

officials

serve

pansion
care *

consider

that

this

mands.

seems

reasonable

think

and
to

that while the System
provide adequately for basic

unavoidable
bank

made

probably

reserves

with

after

rather than in

needs, additions
this year will

reluctance,

some

the

need

advance

appears

it, and

122-Bound Volumes of the

added to

January, 1959.

COMMERCIAL

under

long

the

years

alert

men

DEVELOPMENT

BANK

FOR

Fiscal Agent

for the Puerto Rico Water Resources Authority

PUERTO

CHRONICLE

with

;

Jan. 1, 1929-Dec. 31, 1957

of experience.
Available

GOVERNMENT

FINANCIAL
From

management

P.O. Box

4591, San Juan, Puerto Rico

Write

immediately in N. Y. C.
Phone

—

REctor 2-9570

RICO

Edwin L.
37 Wall Street, New York
5, N. Y.

ex-<

adequate to take.
year's
capital dcr

fully

"FOR SALE''

The tax-exempt bonds of the Puerto Rico
Water Resources Authority are backed by a
tradition of continuous successful operation

•-

that

20,000

kilowatt gas turbine units in service by 1960.

•
v

gold outflow and to hold interest
rates down, the Reserve System

will

further

is tuned for
growth
kilowatts. The West Coast steam-electric Sta¬

pos- >

foreigners may decide to take
their capital elsewhere.
Last year, in order to avoid the
naturally restrictive effects of

Hence it

An. "easy money" policy may
have been appropriate during the
early part of 1958, but it scarcely
can
be so regarded in the prob-

connection.

fears

sibility of a renewed outflow o£ I
gold following that of 1958;- While

supply will be present.

Federal
•

another matter which

ought at least to be mentioned in

holdings

funds

slight

planned for

that

average,

themselves of

rise
this and in the second quarter,

•

increased demand for electric

the:

of time deposits. A similar
growth in the total this year, dis- "

form

of new Treasury se- the losses from this nation's go^d <
/the -rate established stock so far undoubtedly areendurduring the last half of 1958. This,; able,cthere must be a limit some¬
it, seems to me, is a rather frail where beyond >vhich a continued
hope.. /From the end of June to outflow would not be endurable, >
the end of November corporation
and would have to
be stopped.
holdings rose from SI 3.3 billion to This possibility of further losses
$16.9 billion. r/i doubt that any is present so long as this country
such/rate will be seen in the cor- has an adverse balance of pay¬
responding period this year, even ments, enabling foreigners to add
though
some
net
accumulation to their holdings of dollars. Inter-*
est rates are higher in all other
may occur. Between now and June,
however,' Z the • business corpora¬ countries than here, and if devel-f
tions are more likely
to divest opments in the U. S. encourage
curities

ent

continued

the

ap-'

spending for plant

Altogether,
of

■

movement,

runaway

and

the

the Puerto Rico Water Resources Au¬

and time

absorption

;

rose.

meet

less, for the twelve months of 1958
as a whole,
demand deposits ad¬

this

/
non-

financial corporations to continue

local government ex¬

penditures

of attrition and for the

care

non-banks

power,

year,

though the rate of growth tapered
off after mid-summer. Neverthe¬

ditional billions will be needed to

actually

new
records.
The • con¬
has reduced past debts and

.banks of Government securities to

re¬

and in deposits was facili-

bank

would

this

outside
the// door.
difficult to build

one

at¬

titude, which insists that if new
are not being established
or

some

sales

is in position to buy, and there is
no evidence of a buyers' strike.

almost

appropriate, with perhaps

other short-term paper thrown

pounding the existing problem ol

has accumulated

Outlook

Business

same

climate

ment

setting
sumer

savings association should buy, it is
indispensable to consider the gen¬
eral

vestment program for savings as¬
sociations.

securities

to mature in December woulci

considerable increase in
serves

is to invest in Treasury bills./ He doubts long-

rities to total

decision

issue. of

Thursday, March 12, 1959

would mean a very much •
houses under such conditions of July-December, probably cannot greater increase in demand de- '
snow, cold, and flood as we have be less than'$6 billion, even on
posits, which many regard as thef >
experienced in so much : of the the assumptions "on which the only item of money supply del country during recent months.
budget is based, and it can be es¬ serving consideration. In addition] :
Factory employment /has held timated at as much as $9 billion,- a switch of present time deposits
or even more.
On top of borrow¬
to demand deposits is a.possibiPj:*
up
well, the work week has
lengthened, and personal: income ing to cover that gap, several ad¬ ity which cannot be ignored, vi-l *

term bonds in

portfolios containing smaller proportion of secu¬
earning assets would add enough to income to
compensate for their reduced liquidity.
At most he would
suggest departing from bills for 2 to 3 year maturities.

deal,

dealer's salesroom,

new car,

This

housing starts, Few people

immediately

of short-term paper, inducing steeply rising
yields, and advises savings associations that the1

concentrations
•

snowdrifts to

these

pattern, set by the
tax
anticipation
bill to mature next September?
Already
suggestions have
been
heard that a tax anticipation is¬

have understated

through

Will

the

with

recent

tors this winter

plow

new-

30.

June

sue

will

this year will com¬
reduce the problems of
and the year after.

Treasury issues for
immediately ahead—per¬
haps $5 billion between now and

than 19 months.

and in

year

think, in particular, that the
ordinary seasonal adjustment fac¬
the strength of the recovery.
is
especially true in auto

cash'lie

The invest¬

rates.

desired, and more likely of
accomplishment.
Momentum al¬
ready developed, it seems to me,
can
be relied upon
to carry at
least to the end of 1959, so that
this expansion movement will at
worst
equal the average of 12
such periods since 1900, which is

contain:

made

pound

The remainder of

cisions

think, however, that

slower and steadier pace is more

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

Volume

189

Number

5j828

The Commercial and Financial Chronicle
in holding securities at all;
liquidity must be real; it must
be such that you can realize cash
instantly and without substantial

tive

Rates

Yields

Bond

and

/Thus I expect that both money
rates and bond yields will be un¬
der upward pressure in the re¬
mainder of this year, probably
with

the

former

rising

vjr The Treasury's, calendar of
erations alone will be

loans.

And the latter, after

month.

the

Shortly

end

ail,-is

as much
amount of the

for

taxes

March,

smaller

money

likely to be the'

much.

John F. Shields
Shields, manager of the
Brunswick, Ga., office of Shields
& Company, members of the New
York
Stock
Exchange,
passed
away March 5 after a prolonged
illness. His age was 61.

out

to two or three years
may be
justifiable, and probably will pro¬
vide as much yield as the
longestterm bond.

Mr. Shields had been associated

with Shields

With R. G.

ratio

So,

securities

total

KANSAS

York

New

suggest bills as a rule
will meet your needs better than

with

bonds.

and

Two With
LOS

prior thereto

ard

Co.

be times

are

career.

Hemphill, Noyes

Coral

ANGELES,
Haft

now

and

with

Calif.—Rich¬

Alan

Co., 628 West Sixth Street.

before mid-May - a refunding of
$415 billion special bills and cer¬
tificates must be arranged for.

^ These operations perhaps

may

the Treasury through June,
immediately in July another
cash offering will be needed, fol¬
lowed at once by refunding of
$13.5 billion certificates on Aug. 1.
The $1.5 billion bills just sold will
mature in September, necessitat¬
ing another cash offering, and
get

New Issue

there

will

at least

March 11,

1959

$26,340,000
■

one

•

refunding amounting to about $8.9

-....

billion in November.
/ •
>
;■*
1 Some people seem to hope that
the

Treasury

ant

consequences

gram simply

but

of such

pro¬

Dated April 1, 1959

by offering nothing

issues

new

3.20% Serial Bonds

avoid unpleas¬

can

maturity. I do not think this is
likely. The very weight of such
huge concentrations of short-term
paper is practically certain to be
a
major,, cause of steeply rising
short-term

turities. T'Ar ■'
i..

Thus

:
>

■

" '

longer

Principal and semi-annual interest (October 1 and April 1) payable in New York City at the office of the City Comptroller.
c; *'Coupon bonds in denomination of $1,000; convertible into fully registered bonds in denomii;:-y
; ' ^
^ nation of $1,000 or multiples thereof, but not interchangeable.

-•

Legal Investment for Savings Banks and Life Insurance Companies in the State of New York
and for Executors* Administrators, Guardians and others holding Trust Funds !
4
Z , / / for Investment under the Laws of the State of New York

•

ma¬

■'

-_r

•

outlook for a rising
yields in all maturities,-

trend of

but probably more pronounced in
of the maturity

These Bonds Will

constitute, in the opinion of counsel," valid and legally binding general obligations of
Gity of New York, all the taxable real property within which will be subject to the levy of ad valorem
taxes to
pay the Bonds and the interest thereon, without limitation as to rate or amount.

the shorter end
scale.

"?■/

■■

the

(>;;•.;

[

The trend, of course, will not)
uninterrupted. There will be
intervals when pessimism on busi¬
ness will regenerate optimism for
bond prices. A steel strike, if it
be

in the third quarter, or a^
slowdown in production even if it
comes

AMOUNTS, MATURITIES AND YIELDS OR PRICES

does

not, is more than likely to
encourage such trends in thinking.
,'•* Again, there may be periods in
which news reports will suggest

$2,740,000

1960

1.90%

$1,.400,000

1965

2.90%

$1,404,000

1970

2,740,000

1961

2.20

1,400,000

1966

3,00

1,400,000

1971

2,740,000

1962

2.40

1,400,000

1967

3.05

1,400,000

1972

|hjat Federal spending actually will
be

cut

sharply,

that

probable,

besides

2,060,000

1963

; 2.60

1,400,000

1968

3.10

1,400,000

1973

2,060,000

1964

2.75

1,400,000

1969

3.15

1,400,000

1974

arousing

The above Bonds

are

'';'..-V

offered when, as and if issued and received by us, and subject to prior sale and approval of legality
J by Messrs. Wood, King & Dawson, 'Attorneys, New York, N. Y.
4

;.; ■

,—

Condition.
CjBut these psychological and
fechnical factors, as it seems to
do

no more

the Chase Manhattan Bank

than pro¬

has

been

seen

that

and

"Manufacturers Trust Company J. P.Morgan & Co. Lehman Brothers Blyth & Co., Inc. LazardFreres&Co.

Chemical Corn Exchange Bank

duce zig-zags in the trend. These
Wrinkles may be of considerable
Size, of course, since the further
an upward zig goes, the more peo¬
ple are encouraged to think the
Worst

98i/2

(Accrued interest to be added)

Perhaps there will be moves in
Congress suggesting the possibil¬
ity that the Federal Reserve may
be forced to a renewed pegging of
government bonds.
/There are likely to be periods
of technical
adjustment in the
market;
brief
rallies
following
development of an "over-sold"

now, can

991/2

bal¬

fears of another business setback.

seem

the

anced budget in 1960 will
more

April 1, 1960-74, incl.

■

yields, and I think this

cannot fail to be transmitted pro-

Ipressively to yields

Due

months'

few

•

Incorporated

R. W. Pressprich & Co.

Barr Brothers & Co.

Eastman Dillon, Union Securities & Co.

incorporated

Goldman, Sachs & Co.

Merrill Lynch, Pierce, Fenner & Smith

„

Bear, Stearns & Co.

■

The Northern Trust Company Harris Trust and Savings Bank Equitable Securities Corporation

real

change in trend is develop¬
But unless there actually is
a -change
in the fundamentals,
these hopeful expectations must

ing.

he disappointed, and the following
downward zag made sharper.

What

Securities

for

the

have

Savings

standard prescription

for savings associations' choice of

securities,

and

view

the

background

I have (just presented

seems

priate
tor

especially

Blair & Co.

Philadelphia National Bank

appro¬

Reynolds & Co.

Ladenburg, Thalmann & Co.

The Marine Trust Company

F. S. Moseley & Co.

ot Western We w Kork

Schoellkopf, Hutton & Pomeroy, Inc.

Federation Bank and Trust Company

Incorporated

Carl M.loeb, Rhoades & Co.

Paine, Webber, Jackson & Curtis
A. G. Becker & Co.

Hemphill, Noyes & Co.

Hallgarten & Co.
'

Hornblower & Weeks

■

Ernst &

B. J. Van Ingen & Co. Inc.

Gregory & Sons

Bache & Co.

E. F. Hutton & Company

Baxter & Company

Wm. E. Pollock & Co., Inc.

}

Fust National Bank

Company

Hirsch & Co.

J. A.

Hogle & Co.

in Dallas

this occasion.

It is that,
most associations and in most
on

The

Incorporated

Association?
I

Drexel & Co.

circumstances, a program of inVesting ; in Treasury bills is the
prudent one.
Liquidity is

your

primary

mo¬

Laurence M. Marks & Co.

Rauscher, Pierce & Co., Inc.

Trust Company of Georgia

Opley

Hemphill, Noyes &

and

but

with the firm's

(Special to The Financial Chronicle)

Gables, Fla.

there may

Goodbody

was

Stock

And

time he

wick office.

CITY, Mo.—Alfred W.

Exchange, > Mr. Adt
formerly with Alkow & Co.

was

Company during

Chicago office and for the
past six years headed the.JBruns-

Christopher & Co., Board of Trade
Building, members Of the New
York

business

his

former

Christopher

(Special to The Financial Chronicle)

Adt has joined the staff of B.

most

•

John F.

surplus funds not needed in your
regular mortgage business, and if
liquidity requirements are fully
provided for, maturities spaced

the

earning assets.

they do not serve
Moreover, the time
want cash with which
demand for mortgage

when you
to meet a

after

the

The total
return, or' the average rate of
yield, can be increased only by
the

purpose.

one

ing higher bond yields.

the

that some
cash will be needed to replace
$3.6 billion of tax securities re¬

ceived

Furthermore,

(

„

V/When) long-term
fluctuate in price by

can

they will yield just

ratio is 10% or less.

self-evident that

this

if 25%
in securities

/;■ vvC/'* •; ratio Of securities to total assets,
the more futile it becomes to try
bond prices
to increase total income by seek¬

...

•

Perhaps
were

when

The present year may be one of
those times. If there
actually are

major business. 4

presently expected is a resump¬
tion of increases in weekly bill

assets

you

additional -mortgage

make

your

might take chances with some
part of them for the sake of
meet withdrawals, greater yield, but not when the

issue just brought out, or mak¬ as
four times the
ing preparations for another just;, annual
coupon return within the
ahead.,
v. ...
1,
/:;•"/
space of a single year, it seems

before

the greater the need that they be

reliably liquid.

there will.be scarcely an interval
in. which/the .market, will not be

issues

should

the smaller proportion of securi¬
in your total earning assets,

experience of the past decade
anything, it must have

wherewith

bond prices are

J
evident, too, that

ties

for this sort of
liquidity, that is, to provide cash

in this.. Again this year, as in 1958,

not be relied upon

op-

struggling .with final placement of

■

shown that long-term bonds can¬

big factor

"V;

'•

when the need arises.

loss

-s

low.

has taught

steeply than the latter.
:

exact time when

But

surely not in quantities calculated
depress money rates.

/Money

(1191)

Weeden & Co.

Chas. E. Weigold & Co.

Incorporated

The Commercial and

(1192)

Automation Instrument

Dealer-Broker Investment

randum

Recommendations & Literature
send interested parties

recent atomic and

Monthly Investment letter

—

Edison

of Leeds &

First Na-

Opportunities

conversion

ration

Central

and

New York.
—

Survey

—

First National

Boston, Boston, Mass.

rent-issue of "The

Exchange"—The Exchange Magazine, 11
Wall Street, New York 5, N. Y.—20 cents per copy, $1.50
per year.
Also in the same issue is a discussion of the oil
stocks favored by college endowments; common stock fi¬
nancing through rights; odd lot investors, etc.

First

comparison of 21 lead¬
ing New York City Bank stocks—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.
-

General American Transportation

General Dynamics Corp.

com¬

Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 20-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
4, N. Y.
. -

report

Schuster &

Company, 207
available is a

Food

Co. Inc.,

National

Old Line Insurance Co.—Report—A. G. Edwards
Sons, 409 North Eighth Street, St. Louis 1, Mo.

Co.,

Olin

Mathieson

Chemical Corporation

—

Report

39th

annual

—

financial institutions only—

Manufacturers,

National Security Traders
the Boca

data

Southam

largest forwarder, clearance broker and

solidator of international
cargo
of 278 offices and
agents

with

con-

Company,

p Standard Pressed Steel Company—Analysis—J. R. Williston &
"V-Beane, ;115 Broadway, New York 6, N. Y." >
...:' "
t ;
•

network

throughout the world.

Forge Co.—Memorandum—Fulton Reid
Co., Union Commerce Building, Cleveland 14, Ohio.

Steep

Rock

Iron

Mines

Ltd.—Analysis—Osier, Hammond
Nanton Limited, Nanton Building, Winnipeg, Canada. <

Sterling
&

Precision

Corporation—Analysis—Mitchell, Hutchins

Co., 231 South La Salle Street, Chicago 4, 111.

Storer

Broadcasting—Bulletin—Bache &

New York

Co., 36 Wall Street,

5, N. Y.

Stouffer Corporation—Analysis—Boenning & Co., 1529 Walnut

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

Street, Philadelphia 2, Pa.
Syntex Corporation—Analysis—Hill Richards & Co., 621 South
Spring Street, Los Angeles 14, Calif.
Taylor Instrument Companies—Analysis—H. Hentz

Trinity Place, New York 6, N. Y.

HAnover 2-2460

Teletype NY 1-376; 377; 378

& Co., 72
Street, New York 5, N. Y. Also available is the current
"Monthly Review": with data on Allis-Chalmers, Beaunit
Mills, Brown Co., Carrier Corp., J. L Case, Crown Cork &
Seal, Koppers Co., Southern Pacific and Sutherland Paper.
Wall

has been
Vice-President

Fund, Inc., it

following

was an¬

the

regular

monthly
di¬

board

meet¬

rectors

All other

officers of the

Steel Improvement &

The

Cannell

Executive

nounced

ing.

Co.,
cir-

Also in the same
Ltd., International
Nickel Company of Canada, Ltd. and National Aluminate Co.
are

Raton Club.

Of Chemical Fund
Peter

Inc.

Marache & Co., 67 Wall

Liberty Street, New York 5, N. Y.

cular

Asso¬

Convention

Annual

ciation

Cannell Exec. V.-P.

Street, New York 5, N. Y.

A Brochure On:

Express International Corp.

1959 (Boca Eaton, Fla.).

Nov. 2-5,

elected

Ralston Purina Co.—Data—Alfred L. Vanden Broeck &
'

Air

(Cincinnati, Ohio)

Group of Investment
Bankers Association annual fall

Thomson &

Finance Corporation—Annual report—Pacific Finance
Corporation, 621 South Hope Street, Los Angeles 17, Calif,
or 15 Broad
Street, New York 5, N. Y.

—

the;.

Pacific

Philips Lamps—Analysis—Granbery,

Printing

Ohio

of Chemical

Producing Company and Valley Mould & Iron Corp.

Second

convention

Hotel.

Oct. 22, 1959

list of progressive companies which appear interesting,

reports on United Merchants and
and Royal Dutch Petroleum Company.

reviews of Montgomery

Schering Corporation, Coastal States Gas

For

Bank

Consumers Bankers Association
'

Products

and

•

;y-v;

Pa.)

Warwick

issue of "ABC Investment Letter"
Ward

p/'yp.p'

14-17,;1959; (Philadelphia,

Oct.

Corporation—Analysis—Strauss, Ginberg & Co., Inc., 115 Broadway, New York 6, N. Y.

—

are

Banking,

Women 37th annual convention.-,

McKinnon, 11 Wall Street, New York 5, N. V. Also available

Survey

Association

National
:

a memo¬

Amott, Baker & Co., Incorpo¬
rated, 150 Broadway, New York 36, N. Y. Also in the same
—

Consumer

Sept. 23-25, 1959 (Milwaukee,
•-> •
wis.)

Angelica Uniform Co.

Company—Analysis—Chace, Whiteside & Winslow, Inc.,
Street, New York 5, N. Y.

National

Inc., 38 Wall Street, New York 5, N Y.
Anaconda Company

School

(Charlottesville,

meeting.

Corp.—Brochure—Troster, Singer &
Co., 74 Trinity Place, New York 6, N. Y.
Analysis

9-21, 1959
Va.) -

Aug.

/.University of Virginia.

67 Wall
4

ing, Wianno Club.

—

Wisconsin Electric Power Company and

States Sectional meet¬

Atlantic

Tenn.
Martin

Co., 14 Wall St.,

sj:

—

Memorandum

and

Consumers Bankers Association-

patrick, Incorporated, Life & Casualty Tower, Nashville 3,

Air Express International

Airpax Electronics Incorporated

Analysis

W. A. Krueger Company—Analysis—Clark. Landstreet & Kirk-

Quarterly report — Government Development
Puerto Rico, San Juan, P. R.

randum

—

❖

—

Johnson Service Company—Report—Milwaukee
East Michigan Street, Milwaukee 2, Wis. Also

Comparative figures — G. A.
Saxton & Co., Inc., 52 Wall Street, New York 5, N. Y.
Bank for

—

report—General Electric, Dept.
AR-119-2, Schenectady, N. Y.

—

Textile Industry—Analysis—W. E. Hutton &
New York 5, N. Y.

Corporation

General Electric—1958 annual

Jones

Puerto Eico

Co., 45

Woodcock, Hess,
Moyer & Co., 123 South Broad Street, Philadelphia 9, Pa.

parison between the listed industrial stocks used in the Dow-

Public Utility Common Stocks

picnic

25-27, 1959 (Byannis, Mass.)

June

ip Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.

up-to-date

Corporation—Report—Dean Witter

38th

outing at
Club, White
Bear Lake, Minn, (preceded by
a cocktail party June 17 at theNicollet Hotel, Minneapolis)/ *

Montgomery Street, San Francisco 6, Calif.

New York City Bank Stocks—Earnings

Over-the-counter Index—Folder showing an

Co., Inc.-, 120
available are

Club

Bond

White Bear Yacht

America

Bankers

(Minneapolis-St.

Cities

annual

Mississippi Glass Co., North American Coal
and Standard Pressed Steel.

memoranda

,.■!;)

(Omaha, Neb.)

Paul, Minn.)

Twin

Inc.—Memorandum—Cady, Roberts & Co.,
.

dinner

annual

Investment

June 18, 1959

Electrolux Corp.—Memorandum—A. C. Allyn &
South La Salle Street, Chicago 3, 111.
Also

Magazine Publishing Industry—Discussion of outlook in cur¬

Dempsey-Tegeler &

Avenue, New York 22, N. Y.,

23rd

Waldorf-Astoria.

Nebraska

488 Madison

;''

—

York

the

Association annual field day.

of Waukesha Motor Company.

Eastern Industries,

Review

Memorandum

Corporation—Analysis—Blair & Co. Incorporated, 20
Broad Street, New York 5, N. Y. Also available is an analysis

Marubeni-Iida.

New England Business Conditions

May 19-20, 1959

Co., 14 Wall Street, New York 5, N. Y.
an analysis of Glidden Company.
—

Dealers-

party

Security Traders Association of
New

Hammill
Also in the same

Corp.

spring

May 1, 1959 (New York City)

Draper

Co., Ltd., 61 Broadway, New York 6, N. Y. Also in the same
monthly report are discussions of the 10 Japanese stocks
considered favorites for 1959 and data on Daiichi Bussan,

Bank

Pont, Homsey & Company,

Co., Houston Club Building, Houston 2, Texas.

Securities

Nomura

annual

Group

(St.

the Sunset Country Club.

Street, Boston 9, Mass. Also in the same circular
Laughlin Steel, Rockwell Standard

Delhi Taylor Oil

;V
Industry

1959

--Louis, Mo.)
St.
Louis
Municipal

bulletin is

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

29-30-May

April

Consolidated Foods Corporation—Analysis—Shearson,

-Yamaichi Securities

Japanese Stocks—Current Information

Mitsubishi Shoji and

Stone & Co.,

King;

Hotel.

Edward

•

Watkins, Jason & Co., Inc., 37 Wall Street, New York 5, N. Y.

Warehouse

tion annual dinner at the

Electric

Company—Analysis—Hayden,

Traders Associa¬

Bond

Toronto

Street, New York 4, N. Y.

and United States Rubber.

Oil Industry—Study—Boni,

dinner

annual

(Toronto, Canada)

1959

10,

Apr.

Ltd.—Analysis—

Company

reviews of Jones

are

interesting.

Finding and Production Costs in

Japanese

Cellulose

Street, New York 4, N. Y.

Milk

securities in various categories

lists of

and

Commonwealth Edison—Data—du

Also in the same circular is a review of the

Industry

(New 1'orJk City)
Security Dealers As¬

33rd

sociation

Parker, Ford & Company, Inc., 211 North Ervay, Dallas, Tex.

Copper Industry—Review—Hirsch & Co., 25 Broad Street, New
Steel

New York

States Gas Producing Company—Card memorandum—

Coastal

meeting at the Hilton

;

3, 1959

April

Corporation—Annual report—
Gas & Electric Corp., Poughkeepsie, N. Y.

Hudson

Soya

Broad

request—"Convertibles" Dept. CF-3, R. H. M.

which appear

ica annual

at the Waldorf-Astoria.

Central Hudson Gas &

Associates, 220 Fifth Avenue, New York 1, N. Y.
York 4, N. Y.

Bankers

Hotel.

W. C. Pitfield & Co., Inc., 30 Broad
Central

Group of Investment
Association of Amer¬

Texas

N. Y.

Company—Analysis-

Insti¬

April 1-3, 1959 (San Antonio,Tex.)

Northrup Company and Monterey Oil Company.

Chemical

Canadian

190 issues — charted in a
pinpointing buying oppor¬

—

chart

— Reynolds &
Co., 120
Also available are analyses

session

of Investment Banking.

tute

Analysis

(Philadelphia,

Pa.) ^ '£4
Seventh annual

Company.

Victory Building, Toronto 1, Ont., Canada.

tunities—oil

—

1959

22-27,

Mar.

Gorey Co., Russ Building, San Francisco 4, Calif.
Also available is an analysis of West Coast Life Insurance

Research Department, Box 2097 Terminal An¬
Los Angeles 54, Calif.
Limited,

2-color

•

Walter C.

Canadian Financial Picture—Review—E. M. Saunders

Convertible Bond

1958—Beneficial

for

report

California Western States Life Insurance

tional Bank,
nex,

Company

New York 5,

Burnham and
Also avail¬

Conditions—Review—Security

Business

Company—Analysis—Halle & Stieglitz, 52 Wall Street*

Budd

Company, 15 Broad Street, New York 5, N. Y.
able is current Foreign Letter.
California

Co.—Annual

Finance

Broadway, New York 5, N. Y.

government plutonium re¬
quirements — Atomic Development Securities Co., Inc., 1033
Thirtieth Street, N. W., Washington 7, D. C.
—

Field

Investment

Beneficial Building, Wilmington, Del.
Blaw-Knox Company — Analysis — Schweickart & Co., 29
Broadway, New York 6, N. Y.

developments including

Burnham View

EVENTS

Heller &

Corporation—Analysis—Stanley

Instrument

Boston

nuclear

COMING

Simmons & Co., 56

—

Finance Co.,

the following literature:

Atomic Letter No. 46—Current comments on

Memorandum

Co., 30 Pine Street, New York 5, N. Y.

it is understood that the firms mentioned will be pleased
to

Petrosur Oil.

Beneficial

i;-.;

—

Thursday, March 12, 1959

Street, New York 4, N. Y. Also available is a memo-;

Beaver

Beloek

Street, New York 4, N. Y.

Pforzheimer & Co., 25

Argo Oil Corp.—Memorandum—Carl H.
Broad

Financial Chronicle

fund

were

re¬

elected for the
current

year.

Cannell

Mr.

general

partner of the
inv estment

firm

banking
of

E b e

stadt & Co. He
had previous¬
ly been elected
a

Peter B. Cannell

Vice-Presi¬

dent

Chemical

Fund,

Inc.

March 1958. Before joining Chem¬
ical Fund he was associated with
Merrill
Smith

Lynch, Pierce, Fenner &
in

their

investment

re¬

search department.

Invesco Branch
PHOENIX, Ariz.—Invesco, Inc.
has opened a branch office in the
Securities
Building,
under
the
management of Phil C. Franzini.

Volume

189

Number 5828

The Commercial and Financial Chronicle

(1193)

1959—A Year of Restraint

By JOHN L. HOWE*
-

Blair &

Co., Inc., Tulsa, Oklahoma

ing money and whirring bond
printing presses be continued in
an off-election
year? As in 1929,
should our discerning and visionary citizenry again distrust credit
and fiscal adventures?

Oklahoma security trader's capsulated comparison of
expecta¬
tions for the last year of the "Fabulous Fifties" with earlier

episodic

thoughts
examine

years

one

way

-"The Fabulous Fifties draw to
Paoer
Paper

miilibnaires

almost

are

commonplace as postmen
boys. Money
not

'may

or news-

government

want their free

whatever

voters

demand

first

sometimes

place.... N

e w

innovations

World
Old

and

are

onds

20th

Man's

Our

the

dynamic

which

and

economic

characterize

Century Democratic political

Changed

con¬

scientific

advancesbring
30

work

hour

10-

week,
The

vear

ernigclebetween

intense

private and state

clStem-West vs.
West v"

East-enters
isasi-emers
trade-aid arena.
The

capitalism-

the critical

Soviet

World

human

and

effort

its

mobilizes

material

vast

resources

free

cherished
enterprise system overpriced

and

decadent.

to prove

our

Events in Marxist

that Napoleon was a
keen student of history when he
China imply
HnrHrod

China

sorry."
China
embrace
the

When

sleen

worldwill
iwia wiu

the
tae

awakens
awakens,

moves

be
De

rapidly to

Marxist

slogan,
abil¬

"From each according to his

according

each

ity;

his

With 600 million Chinese

needs."

26,000
aims

Mao

Dictator

communes,
substitute

«2_?radfflormllv" he cor!

nwstone^f

society—for

Chinese

snhsm-vieime to

benevolent state

.Wtthajoott

Chinese comprising a
each of the 26,000 com-

commune,

the

outdistance

vie

munes

fields

production,
agriculture and invention.

others

the

followed

these

the

nationwide
month

RoWfe

John

Middle

turbulent

East,

ambitious
Nasser,
like
Yugoslavia's Tito,, adroitly plays
East against West.
To^ accommodate growing traffic,
U.^S. army's
dredge Essoyan, world's largest,
tackles the assignment of widening
Egypt's

Philosophy

the

Fabulous Fifties.

Upwards
of $6 billion annually is now the

minimum subsidy exacted by

accepts Soviet

cr?dits for the

constructiorL of five airfields.

An-

$106 million Russian gra t

other

headwaters ca
of

the Nile the Aswan Dam. Am
answers

with $ 2 4-"t m ill ion of su r -

J Hf wbeat

$10 million of

Our ^foreign policy

Yugoslavia.

^ IJlno
Amencan aid goes

i*s directs toward keeping state

Dow

with

Dow-Jones—Water creeps into
this soaring barometer! Assuming

change in composition, indus¬
a 605-505 price
The high side calculation

4% basis for

private,

investors?

e r y o

h i 1

Telephone (bread and butter fav¬
orite) or 246 for the old stock—

Assays Stocks of Current Interest

tion
a

assumes

new

under

heralded

six

plus goal.
Savage trade
competition could selectively im¬
pede the far-reaching benefits of
the
1958
Technical
Amendment

Bond

bonds

a r

and

displace cash.

vancing

age will

tax

e
-

—

assumes our

ad¬

Aircraft.

record!

New domestic

the

dividend

stock

accumulano

—

standards.

sales

token

impending

interest rates' will retard
housing starts—subnormal by

1955-57
car

should

space

assumes

artificial status. Only denoting claims
°
*

....
modest pick-up

High

calculation
reckons
ailing
Chrysler will remain in Dow even

Convertible

exempts

again

trial

those

major indus¬

divisions like drugs, natural

banking, insurance' or the
growing field of recreation will
not
gain admission to exclusive
gas,

Dow circles.

tion

Without representa¬

airlines, trucking and
pipelines, the Dow rail average is
sorely dated.

Stability character¬

izes the Dow utility average
very

narrow range

Inflation

—

in 1959.

The current deficit

spending jag could end this June
30.
From a 1954 level of $19.1
billion, annual Federal spending
soars now to $33.4 billion.
From

from
a

decade of

30.

zoomed

year

27!

Issued

After

again—from

amazing

our

sure
:

create.

triumphs

employment,

-technological
To
distribute

Yet in

enforced

retirement age and con-

social security
benefits? Do we raise
our bid price for gold or save this
economic heritage for the inevit¬
currently

step

and old age

able

financial

that

follows*

and

credit

currency

morass

debt

and

debauchery?
:

Senator

when

valid

Byrd's
"

he says,

appraisal
.

feel

certain the great majority of our
'The
his

own

his

author's

views

and

opinions

and not to be construed

firm.

are

those

lower sales and profits 75% under
the levels recorded

a decade ago.
a calcified conscience could
spark this coup. .Merit, not manip¬
ulation,
characterizes
zooming
American Motors stock.' With vi¬

Only

sion and purpose^
management team'

sayed

public

this talented
correctly as¬

demand '

for

companion for our
gargantuan modern vehicle.
Yet
outlook, earnings and a vastly im-

economy car as

prpyed balance sheet give Airierican

Motors shares reserved specu¬

lative stature.
In business

our share the spotlight.

and consumer prices, parity is the
accepted practice.
stock

market,

Except via the

farmers

were

ex-

eluded from sharing in the industrial
boom
which
characterized

the

Roaring

Twenties.

in sports, leader¬

Critical prob¬ these figures, the $40 billion plus
ship belongs to restless and deter¬
acceptance of faith for defense and those billions for
mined
individuals
not
the
in long-term governments. We are foreign aid and nuclear energy

l°ar\s-

Bojh

the tax-supported In-

tcrnational Bank for Reconstruc.
tion

and

Import
Inter

Bank.

gold

dividends.
who

can

On the recent record,
have confidence in fixed

distant

have

due in

some

very

year?
Only tax-exempts
endearing attributes.

now

tbe, international With minimum risk, where

banker and aSent have been dls"

placed

—

reminded daily that bond interest
js fixed.
Tt cannot rise as can

Thirty dollar contracts

ago,
the ubiquitous bond
salesman was agent for foreign

years

Development, Exportand the impending
Development
From 1816 to 1930, a rigid
Bank

American

standard

facilitated

com-

merce and balanced accounts. Su-

P^eding the gold standard is the
International Monetary Fund, the
Trade Agreement Act (reciprocal

pean Monetary Agreement.

excluded.

are

No less

author¬

ity than Virginia's Senator Byrd,
chairman of the Joint Committee
Reduction

Federal

vigorous

Non

Expenditures,
support

Eisenhower's

essential

promises
President

for

balanced

budget

else goal.

Congress
always
appro¬
does one purchase 3% to 5V2% of priates, the White House admin¬
annual
where in 10 years isters and spends.
Will the Re¬
the interest accumulation
alone publican leadership borrow a page
can
match the initial outlay
by from the late* President Roose¬
one-third, more or less — this velt's bag of tricks and this year
without computing the compound turn down the Federal
spending
feature?
Yield on top-grade cor- spigot?
In 1937, Franklin Roose¬
porate credits (example — U. S. velt admonished the country on
steel 4% coupon $965 per $1,000 inflation. He tempered the boom
bond, or American Telephone by restraining the laboring gov¬
4%% at $1,005) soar above 4% ernment bond presses. Should a
whereas quality stocks, invest- Federal lottery effectively re¬
ment shares and mutual funds stricted to long-term governments

income

self-satisfied timid souls who fear

challenge, change andobsolescence.
Does

lush financial statement

brilliant
the

in the Twenties.
faire

New

This announcement is not

the

indicated by the pro

ranks,

have

championship

match

the record

Bud Wilkinson?

too

ness

talent

teams

to
Oklahoma's

Successful busi¬

must

have

exceptional

the

helm.

;

mechanical and scientific achieve-

the

headwaters

inflation.

early Forties, were not Sears
and Montgomery Ward formidable
rivals?

Annual

sales

Continued

were

$25,000,000

Northern Indiana Public Service

Company

Bonds, Series J,

Due January 15, 1989

Dated January 15, 1959

in the field of housing and development

Mounting

the

was

dilemma

private
30

debt

years

Price 101.656% and accrued interest

ago.

Today, Federal debt is the dilem-

Ury
our

Certificates

was

bonds)

into

economic bloodstream via the

banks at

the

(U. S. Treas-

and

seven

accelerated pace.

sum

Federal

costly

Korean

close to

our

only such

For

1933-39, the price
New Deal pump-priming
ex-

penditures for this single Federal
fiscal year ending June 30. Even
came

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

years

half the

the

The

HALSEY, STUART &, CO.
DICK & MERLE-SMITH

INC.
R. W. PRESSPRICH & CO.

LADENBURG, THALMANN & CO.

ALEX. BROWN & SONS

STROUD & COMPANY

WM. E. POLLOCK & CO., INC.

INCORPORATED

War

never

current

spend¬

GREGORY

NEW

& SONS

YORK

HANSEATIC CORPORATION

ing record.
Is

this modern

Republican

SHELBY

ma¬

CULLOM

ing

us again toward the inevitable
precipice? Need 1959 like 1929 be
epic?
Again this year the statutory debt ceiling has the spenders
in tight quarters.
Could the Re¬
publican platform of 1952 become

commanding in

1959?

combination

rapidly

Need

the

circulat-

FIRST OF

March 11,

JOHNSTON, LEMON & CO.

MICHIGAN CORPORATION

THE MILWAUKEE COMPANY

McMASTER HUTCHINSON

1959

COURTS A CO.

DAVIS & CO.

chine of the Fabulous Fifties tak¬

STERN BROTHERS & CO.

& CO.

FREEMAN & COMPANY

J. S. STRAUSS & CO.

RAND & CO.

/ :

then

page

First Mortgage

the

tbe

Twenties, seething multjtudes foun(j eity life
alluring,
Today, our exploding population
embraces suburban living. Home
ownersbip js encouraged and facilitated by Federal intervention

recent

years, too many have been floated
into positions of responsibility on

offer to sell or a solicitation of an offer to buy these securities«
offering is made only by the Prospectus.
;

state process. Purpose—the equitabje distribution of our amazing

many

colleges attract top football talent.
Yet how many will consistently

The

Roaring
Twenties, welfare and retirement
pians and enforced profit-sharing
are now a continuing Federal and

York

Yankees from other ball clubs? As

Whereas laissez

characterized

management distinguish

pennant-winning

day, labor and farmers are militantly organized.
Both segments
of society were wholly impotent

shorten the tag

To balance production
and consumption, do we lower the

work day?

are

505,000 Artloom
single week last
September, 375,000 shares changed
hands.
This amazing feat despite;
shares.

farm Population. To balance farm iem is public

money

Equally critical is the equitable
distribution- of the enforced lei-

than

neglect, this stock last

capitalism
checked.
Avoiding ma! We
mortgage the wealth of
purposeless" warfare is still a
future
generations by pumping
tical problem of our time.
Federal debt
,

n e

knows you cannot talk down in¬
flation

simultaneously
pumping Federal debt money ex¬
clusively into the banking system.
American Inflation tempered in. 1959?

adversely
affect sales and profits of United

Republican

the nationalized Suez Canal. Nas-- ments.
ser

depreci^on'orspeciaitexfnduee1

Act which sanctions corporations
adventure of the Roaring Twen- with 10 or less stockholders being
ties.
In capsule.jgym, let its con- .ta^d as partnerships.
An exceptrast those Roaring Twenties, and Tional, business
year—no boom!

technological

nearer

Economic

of 1957—just be¬
dropped out of orbit government bond with increment
resounding thud? High on always exempt from capital gain
bonds—tax-exempts especially!tax (long and short term) entice
summer

fore

assumes

million

Our last great economic breakdown

fabulous

and

she

p^A^oes.^e

apart.

quest of space
has
arrived.

our

^ y record levels. With

•

(banks and thrift institutions in¬
eligible) curb our debt money in¬
ore would
a
low interest,
deep discount 50 year registered

flation

Profit margins gen¬ 82 after the 3-for-l split.
It as¬
Stock Market—Merit and
manip¬
erally downward. Unemployment sumes directors of Eastman Ko¬
ulation
are
now
characteristic.
still rising.
Assuming a $41 bil¬ dak, American Tobacco, Goodyear,
Recent examples—Artloom
lion defense budget, national in- U. S. Steel and General
Carpet
Foods will
and
American
Motors.
During
come should hold above the
$420 sanction rumored splits. The low
1945-46, Artloom shares zoomed
side

that, American.

disturbing-

philosophy?"

sec¬

Examines 1959

mission steel strike,-inventory

*;y

imply

now

character¬

trials could record

i
wor.
evidence
a

ized the

stocks

over

range.

;wanttthej.c torpments, and
de ee fo™ Dlant capital expenditures for
7"
preserved
and
eauinment should
enterprise system ^ain at leas^
20% below 1955-57

ftbls nation s

gains fast

T
of

everything yet
~it

people want the integrity of

ing bonds

competition.

requiring considerable thoughtful selection.

out¬

Business—Another solid year! It
can't miss!
Intense and savage

speculative interest in gold shares is premature and unwar¬
ranted; and surmises favorable shares will prove elusive—

•

let

business

intriguing topics of moment.
-

another; believes current

backdrop,

'Dow-Jones, inflation and similar

downward plunging D-J index; questions stocks of particu¬

lar current interest in

;<s-

1959—the

look, bond market, stock market,

leads him to the conclusion 1959 promises to be
a "Year of Restraint" unlike
predictions made of "A Year of
Opportunity" for 1958. Mr. Rowe wonders whether the present
spread between bonds and stocks will again, as in 1957, signal
a

With these

now range from 3 V2 % downward.
An almost identical spread favor¬

The Commercial and Financial Chronicle

this

Economic Consultant,

high reserves in. the
and Loan Association, a
higher than usual percentage of it
could be invested in mortgages.
This is true because reserves must

Washington, D. C.

Newcomb
homes.
of

household income data in terms
discovers surprising growth over

The economist adjusts
dollar

stable

and

quired against a loan made by a
Savings and Loan so the money
could go into mortgages.
*
f

$5,000 level; defends low down payment; suggests tapping
pension funds by, for example, FNMA sale of long-term
debentures or by extending ten-year loans to S&LAssns.;
and notes S & L's declining growth in accumulating savings.
The

Office

nomics

Commerce

available
and

has

the

Business

the

just

mmmmmmm

income

distribution.

Unfortunately
were

data

form
ehow

When the market

to
Robinson

Newcomb

given purchas¬
ing power. The figures suggested
that the number of households
With incomes over $7,500 per year
In 1957 dollars was rising rela¬
tively faster
than the number
,With incomes under $7,500 and
that there has been a decline in

units

But

not

the data were

Per Annum

the

distribution

are

funds

mort-

makes

Demand
of

only

course,

calls

for

chaser

large

out.

effect

when

and

o n

has

softened

been

comes

Washington;
next week he,

President:

Secretary of the Defense Neil Mc-

E isen hower

that
we

perhaps

should
in

bend

un-

Carlisle

;

Bargeron

the

can

attitude of

our

retreat from Berlin,

ported to believe that we should

disengagement policy with a deEurope.
Savings and Loan System There should be a thinning out of
adjusted quickly to enable troops, he believes.yr.

S&L's

directly

borrow

nuclear zone in Central

and

How

we can

thin out any of our

competitively in the money mar- troops is difficult to understand
kets, it wTould seem that the vol- inasmuch as we only have a corume
of housing in
1959 should ^porals guard in West Germany
equal or exceed 1.3 million.
If now. No one believes this force,
action is taken in the Savings and in itself, could withstand an at-

1960.

He is

income proud of his house. He improves
very pertinent to it—he spends time and money on

The

market

The

strong.
if it

-that

free

housing s is

is available
So it would
housing volume

money

be tapped.

can

appear

for

the

market

should

1.3 million units in

1959.

exceed

-Should

tack by Russia. We have only a
token force and those Democrats
who are insisting we should mobilize and reinforce these troops

denied

weapons.
•
' If we would agree to denuclear.

to trust funds be
higher interest rates

access

and

to do.

The

s^id
a

recenf'sTC^rel^as^oii'the s'ub-

British

have

Prime

had

Minister

little

have

DeGaulle of France,

That

could

that

mean

Adequate

million

mortgage

secured

little

here,

success

institutions

p^!?e American policy and that
France and West Germany is.;
hrushchev s^11S
worked heretofore,
only attitude that has been
S&L's.'.successful in dealing wuth Russia.

growth in time and savings
deposits of banks in the third
quarter of 1958, for instance, was

fluence

ready

and

several labor leaders

with offers of aid to the counsel's

Rotan, Mosle & Co.

families, or one million
access
to savings of the country.
move to better houses
Housing funds are being denied
each year.
They could abandon
access to current savings. Increas¬
roughly one million houses.
ing proportions of savings are
HOUSTON, Texas — Rotan, fers to the committee. The two
! Actually, of course, we do not
coming in the form of internally Mosle & Co., Bank of the South- senators think he should have,
abandon a million units a year.
generated corporate funds, time west Company, members of the holding that any effort to bride
Housing is upgraded by improve¬
deposits in commercial banks, and New York Stock Exchange, on the committee is a very serious
ment of existing stock as well as
pension funds. Corporations in¬ April 1 will admit Duane V. Geis, matter.
by abandonment of existing stock. vest almost
nothing in housing. Johann L. Mosle Jr. and Henry - Young Kennedy made the disThe amount of the improvement
Commercial banks make a rela¬ E. Wilshusen to partnership. Mr. closure out at Milwaukee at
a
depends in part on the cost of new
tively small volume of new hous¬ Mosle will make his headquarters political gathering of Democrats,
vs. the cost of improving the old.
ing loans, and pension funds make in Dallas; Mr. Wilshusen in the He perhaps didn't think it would
The
Census
has
recently re¬ almost none.
Galveston office in the U. S. Na- bring such reaction as it did.
It
vised upward its estimate of the
tional Bank Building.
probably will prove very embarTapping Pension Funds
probable number of households
rassing to him to have to produce

families,

To Admit Partners

that will

be found

desire

homes

and

people
their

1960.

The

have

good

ability

pay

for homes is such that the number
of households is rising even more
than
some
have
expected, and

housing standards also
improved more than
anticipated.
/
The

markets

are

being

some

which

had
am

statement by Mr. Newcomb before
the Joint Economic Committee, Washing¬

ton,

D. C,

Pension funds at least could be

those

With Hare's Ltd.

tapped

very
readily.
FNMA is willing to sell

Unless
long-term
debentures, it is difficult for pen¬
sion funds to invest in FHA mort¬
gages, but they could lend funds
to Savings and Loan Associations.
A

10-year loan to a Savings and
Loan Association would be guar¬
anteed

by the Savings and Loan

Insurance

Corporation and, there¬

him

office
serving

inces-

were

sant? he seemed to enjoy the give
take,

and

•

Truman had

president

even

greater turnover than Eisenhower.
He had four secretaries of defense

None of them served more

alone.

SrAlo'months. "fhaVj"ob
th

haahad
o£ the

t turnover of

pahinpt nnri<?

Schroeder Boulton Is
Partner in

Goodbody

Goodbody & Co., 115 Broadivay,
New

York

New

York

other

City, members of the
Stock Exchange arid

leading

modity
changes,

stock

and

corn-

ex¬

an¬

that

Schroeder
Boulton

has

been admitted

to the firm

LOS

with
was

become

Ltd.

Mr.

associated

Lotspiecli

formerly Beverly Hills rep¬

resentative
ment

ANGELES, Calif.—John E.

Hare's

for

Atomic

Securities

fore, would be a good investment thereto
for the pension funds.
Because Co.

was

Co.

Develop¬
ard

Goodbody &
Co.

from

Baker, Weeks
&
Co., mem¬

Schroeder Boulton

bers of the

Exchange, where
partner-in-charge of
research since 1943. A graduate
of Columbia University, class of

New York stock

been

he had

1930, he has engaged in financial
and
industrial
research
work

throughout his business career.
Boulton

Mr.

financial

has

written; Jfor

publications

eco-

who

made

the

offers.

nomies,

Policy

the

Federal

Reserve,"

1934.

K. W. Carlstedt With
Ants Treat A Go.
Kenneth W. Carlstedt will open

and manage a collateral loaif

de-

partment at Amos Treat & Co.,
inc., 79 Wall Street, New York
City, the firm has announced. Mr.
'Carlstedt has resigned as xdde-

Whether Mundt and Capehart will

(Special to The Financial Chronicle)

Lotspiecli has

Mr. Boulton'
comes

banking, trade and mdUsbrother, Senator John F. Kennedy, try,
and was the author of
in his Presidential aspirations if ' Inflation and the Stock Market,
young Kennedy would go easy on
published by Columbia University
them. He did not report the of- Press in 1933 and
Open Market

financing

without

research

large down payment.
cannot

attacks

established

Mr-Eisenhower

growth in savings through S&L's?

grown

•

number of households.

Wilson

permanency

The

have

other than S&L's compared to the

study of the housing market landscaping the outside and on 392% of the growth in
because the absolute growth in fixing up the inside.
The demands by Senators
The basic New sources of funds must be
the number of households now question is: Is he an honest man; tapped for housing.
>
Mundt of South Dakota, and
Capehart, of Indiana, that the Senrepresents only roughly half the can be afford the monthly pay¬
housing market.
The upgrading ments? The basic question is not: Growth in Savings by Individuals ate Rackets Committee investigate
In the United States
the alleged attempts to bride the
Of housing
standards represents Was the down payment low?
Ratio S & L to Other Savings
committee's general counsel,
the other half today.
If 20% of
My comments about the size of
(1955 Ratio S&L's to others—100)'i'
the population upgrade their the market
youngish Robert Kennedy, are a
being in the neighbor¬
1958:-'
reflection of the Republican mem¬
housing about 10% a year (and hood of a million and a half are,
Julybers'
increasing dissatisfaction
this is not far from what appears
1955 1950 1957 Sept.*
therefore, based on the assump¬
with the way young Kennedy has
to
be
happening), the housing tion that families able to pay for Time & Savs. Dep._ 100 123 210 392
been running the committee.
Investment Co. Shs. 100
112
125
343
market would grow 2%;, or about
housing will not be denied hous¬ Pension Fcls. & Res. 100 106 126 222
Kennedy said he has been ap¬
a
million units per year, even
ing because they cannot make a
,:,Not seasonally adjusted.
proached by one management in¬
though there were no increase at
in the

general
partner in
charge
,
of

mgs

any

all

Charles E
record

success

his ideas to Chancellor

wfw!Adenauer and
ject, shows how individual sav-

Elroy has called attention to the
heavy turnover in top-level Offi¬
cers
of
the
government.
They
serve no longer than to learn their
jobs and then resign. Some quesRon the wisdom of calling in businessmen for these jobs and some
qf those on the lower level.

nounces

S & L's Declining Growth

resignation

expected

fact

!1^r!oralV' of

WG
could hardly put enough troops
m West.Germany to stop an attack. We are relying upon atomic
are,

ized zones we would be giving up
our deterrent. Probably we could
reduce the volume of FHA financ- do this if the Russians were to
ing, the volume could drop below agree to withdraw to their own
a 1.1 rate by late fall.
; borders but this they aren't likely
improved

certain

know.
The

big demand for housing,' a

asked

„

be able to work out some sort of

With

is going to try
to
convince

The British Prime Minister is re-

and if the institutional framework

not

questions. Kennedy's purpose is
to develop the story he wants to
develop and then rest there. Fur¬
ther questioning would frequently
reflect upon the credibility of the
witness.
The committee hearings
are a one-man show.
Maybe they
are being conducted properly and
maybe not.
But the Republican
members insist they have a right

and apparent¬

him.- He

would

ly it had quite
a n

witness they are told that Coun-

sel Kennedy promised the witness

q""e.fn

moitgages.

down

not walk

does

was

well as increase the amount of
housing that could be built.

If the contract

for rent.

can

Khrushchev

with

for

rate

interest

appearance,

when it

perience

hold down

the

into contracts for pur¬

translated

chase

its

Prime Minister Macmillan's ex-

help

would

gages

shift

could

buyers

flow

mented

payment
or for rapid amortization or high
the
problem of translating the
monthly payments,
the market
data made available to the Senate
is reduced.
It should be noted
Committee into constant purchas¬
that
easy-term
home
purchase
ing power tables.
The resulting contracts have
proved to be good
tables showed that the number of
contracts.
We don't get excited
households with incomes under
when
a
family rents and pays
$5,000 in 1957 values rose through
only one month's rent in advance.
1949, but has been declining since. The mortgage behind a property
The number with incomes from
being rented is not imperiled be¬
$5,000-$7,500 has been rising very cause the tenant may leave at any
appreciably. The rise in the num¬ time.
The
mortgage
behind a
ber with incomes above $7,500 is
house bought with a small down
quite startling.
payment is not a hazardous risk
either because the purchaser can
One Million Upgraded Homes
walk out at any time.
The pur¬
I accordingly put staff on

Facts

home

than the spread between in¬

year over an extended
of time. Such a demand
would appear to be with us today.
Loan field promptly, the number
might rise appreciably above 1.3
Defends Low Down Payment
million in 1959, and still higher
per

period

number with incomes under

the

$5,000.
clear.

fund

pension

paid depositors and interest
charged mortgagors. And the aug¬

house¬

upgrading of income (not far
from 800,000 a year), there would
appear to be an effective demand
for
something like
1%
million

the

terest

from

the number of

families

that the spread

means

from

gages

resulting from

number

overhead in
would be

the

money

the interest rate paid

loan

less

(about 800,000 per year) is
added
to
the
market resulting

what has been

happening

the

and the interest charged on mort¬

holds

dollars

ctant

increased

the

con-

This

than

thousand $1,-

one

this

between

market for housing.)

not pre-

aented in such

deposits,

less.

sickness or acci¬
dent, and families living on sub¬
standard
farms,
among
others.
(The need for what has been
called "compassionate housing" is
a separate matter.
I am referring
here
merely to the investment

trends in fam¬

these

handling

capacitated

ily and househouse

cost of

000

less

far

loan

handling

million

of handling a

cost

dollar

groups—those without wage earn¬
ers, those on inadequate pensions,
families whose wage earner is in¬

made data
Banking

Senate

Currency

Committee

The

referring have little reference to
the needs of the lowest income

Eco¬

Department

such

for payment are made.
reserve
would be re-

of the News

By CARLISLE BARGERON

oft depositors

enable them to pay
if requests

Washington

Ahead

Savings and Loans just as reserves
must be maintained by banks to

1.5 million

annual rate of about 1.3 to

foresees

From

deposits by

be maintained against

encouraging evidence
regarding the housing investment market. Assuming adequate
savings flow into mortgages and low down payments, Mr.
Well known housing economist presents

Thursday, March 12, 195&

Savings

By ROBINSON NEWCOMB*

have to be

not

would

loan

backed

Prospects for Housing in 1959

(1194)

prior

with Dean Witter &

president

get anywhere in their demand for

Company, Inc., money brokers,
take his new position.

investigation is problematical,

The

committee

Democrats

and

divided,

Nicholls

&
to

four

four Republicans.

With Crowell, Weedon

The four Republicans contend
(Special to The Financial Chronica?)
they never know what the com¬
LOS ANGELES, Calif.—Donald
mittee is doing.
They are asked
to attend the hearings in order to W. Crowell is now with Crowell,
have a quorum but are exoected Weedon & Co., 650 South Spring
only to lend their presence. If they Street, members of the Pacific
try to extend the questioning of Coast Stock Exchange.

"Volume 189

Number 5828

.The Commercial and Financial Chronicle

J11

(1195)

Changing America 7f

f
il!

time raise

President, International Statistical Bureau, Inc.
"Visiting- Professor, Graduate School of Business Administration,

«I

Business economist stresses the impact on business and invest¬
ment of our sharply raised standard of
living and broadened
income distribution.
'

Stresses diversion of

lit:-'

circulation media.

Concludes

expansion

number

the

hus-

The

same

answer

spent time

do.

operations.

and

organs,

the stock market's

part of the

Time

may

there

has

been

point

dency to overestimate the

of a;woman.

mass

52%

•

new

of all

Sure the ladies

common

ten-

own

stocks listed,.

-However, the bulk of it is owned

that

good

as
:

sition
o

stoics. It also explains the -

al.(r,

with
and

po-

quentiy.

than

those
r

strictly
the

with

stock

market in de"

'•t

ermining

-''future

order

arrive

outlook

dustries.

One

must

con-

rorecast geneiai
Wastgeneral
a

dXv

nventorv

knowledge

One

cannot

wTthout

business
ousiness

witnoui

knowledge of the cost and

;^';ply of

in¬

forecast

cannot

commodities without

•4

composite

sider the outlook for various

business

W. Zelomek

ten-

l-v iiencies.

sup-

I am sure you will
ragree with me that every phase
money.

economic

bearing

activity has some
the over-all economy.

Our

Changing; America

They

money

distribution, the most important development in recent

con-

the relative number of females

human's

and pay

families, and. in 31%

of families-

from
have

prt

especially

vanrct

the

ties.

age

't;

years

ago,

especially

1925

started

analyze

ago,

and

years

first

when
and

forecast
economic trends. America today
1 is truly
a
land of plenty.
We
,

our
car
ownership in
■millions, our population in hundreds of millions, our income and
expenditures
in
billions.
We

; measure

[

^travel fast and far at home and
abroad.

superlative

terms

P°werful>

'o
..

We think of ourselves in

the

most

richest and most

P^Shly industrialized
the

c o u n t ry

highest standard of hv-

The

middle

century Amenbe characterized
are
big, yet cor-

9'-can profile can
-•°'as follows: We

•"'jporations
u

are not
believed.

A generally

0 j
w

bile,

dominant
We

are

to; influence

our

i and

current

stock

economy.

frisen

and

mean

market?

considered

are

mean

every-day

what does

the

terms

living,

terms

Today

middle

class

Our living standard has
our
purchasing power

is much greater than it was years
'

In fact, it is 57% higher than
1929, despite the dilution of

ago.

;r,j,the dollar.

Note what has hapIn 1941, 85% of all spend^ ing units received
less than $3,000
-annually. In 1956 it was only
83%, and in 1958 it was probably
-.• closer to 30%.
pened.

•

•j

„
■

•

....

•;!;
t

It is

with

popula-

The structure of the

have finally become

known fact that when

individual

moves

the

income

of larger , families in contrast
the situation in earlier years

which smaller families
nated.

predomi.

characterized

by the growth
jn labor unions, resulting in increased costs, which are
to some
extent

responsible

tionary

pressure.

for

ment

Equally impor-

stalment

credit buying.
This has
however,
as
comoared
however,
as
compared
with the gain in the consumer's
liquid asset position.

Services

in¬

the

investment

been

funneled

standpoint,
into

securi¬

flotations

common

you

can

the present time.
Thus
understand the correla¬

tion between retirement

trends in

plans and

the stock market.

Time

will not permit me to go into this
in

greater
The

the

detail.

most

important fact about

increased leisure time

that

from work, rather than
work itself, is coming to dominate
the week. Have you ever realized
the extent of

our

leisure market?

Kay

equipment, for I expect both the
have

and blue
more

and

Only 30%
lotted

collar workers to

our

our increased service

Before

getting

market

return

down
such,

again

to
I

the home. This includes

modern

The changes that have
occurred in her status at home, in
woman.

and

the

community

developments of the present PC-

City, Feb. 2S, 1959.

riod.

women

are

educated,

March 9,1959

al¬

television,

gardening and other home activi¬
ties.
a

"Do-it-yourself" has become
$iy2 billion industry. When we

sit in the back yard or lounge on
the beach we utilize especially

designed furniture, clothes, port¬
able
radios
and
photographic
equipment.
Electronic

lar,

should

leisure
well

industries, in particu¬
reflect this greater

time

producing
as

the

same

outdoor

small

those

furniture

housewares.

The

growth in demand for do-it-your¬
self

kits

the

increase

should

continue

will

consumption of
paint. There is no item relating to
home activity, including garden¬
ing, that should not reflect this
growing leisure.
While many new industries and
companies have already reflected
this trend, the opportunities have
not yet been exhausted. A 35-hour
week would have become a reality
without

the

current

demands

AFL-CIO, and we might

em¬

phasize that this must mean new
and a further increase in activity
in the home and outside the home.
The important thing to emphasize
is that we should remain alert to

the

special needs of leisure time.

Continued

of record only.

5^2% Notes

oAllen & Company

the"

should ~

leisure is

sports activities. The
other 70% is spent in and around

supporting more and more government workers, and this is a

large part of

leisure time.

Jewelry Stores, Inc.
Fifteen Year

suggestion

sports equipment and recreational
white

$5,000,000

higher standard of living. We
.^°
beau*y shops and the
barbeif shops more often. We go
to private dentists and doctors/
and more frequently rather than
We sPend
9r
tranquillizers and more for headac*}e P
We Practically bave
put .the repair man on our payrolL Bpt more important, we are

sure that you consider in
of your investments, compa¬
nies which' are manufacturing

the

time away

brackets.

any

These investments have been

stocks

income
is to be

business

York

This announcement appears as a matter

tb.wS t? Worme/!h,'V„£:
Bu«iness, Inc., New

estimated

$33

Ten years
In

million.

the bulk of sports equipment sales
is going to the middle and low

undersigned have placed the Notes, described below, with institutions,

These increased expendi^res for services are a reflection

American

over

6.5

were

1957, 30 million people were in¬
terested in boating and spent $l1/£
billion on this sport.
Just to keep the record straight,

and

are

total

there

sensa¬

2.4 mil¬

were

lion recreational boats.

later

produc¬

Is there any reason

tional? In 1947 there

„

were

all. cognizant

are

;

P
? 4
bee" f°r services, rather than for

explains
.

sure you

greater significance isthe way in which we are spending
our
money.
An increasing pro¬
portion of our expenditures has

This
■

and

especially with the yield
bonds much higher than on

Automa-

of the tremendous rise in

even

There

only 5 million fishing licenses in
1933 and 15 million now, and fe¬

The
Emphasis

nicer

incredible volume.

laeaed.
lagged,

stock

comparatively
favorable movement of high

1957

the case of
insuiance
the circulation depart- During 1957, expenditures for
strictly recreational activities, as
in newspaper offices, or

costs-

things in life."

Crafts
an

workers,

infla-

the

tant is the marked increase in in-

wishes of the income group into
Which he has risen. He wants the
the

additional

celerate the assembly line; or it.
be a computing machine
designed to replace human hands,

The middle of the century may;
jje

ladder, he acquires the tastes and

"better

stocks,

tion
will
necessitate
increased
production of automatic machinery. It may be a machine designed
to .make bread; it may be a
machine
designed
to
help
ac-

nation

overestimated.

not. be

family is extremely important, for

economy.

What does it all
of

associated

tion growth.

mo-

subject to change;
and these changes exert a marked

beings."

...,1+,,^

are

words

M.I.T., "The

human

group.

From
the
standpoint
of the
stock market, its importance can¬

'•10

and

45 years though leisure and culture may in high grade securities and what
Since I am :■ not always be synonymous?
A you would call "blue chips." This
entitled to one plus for my
bopk,* shorter work week has -been' has reduced the floating supply
I would like to call your attention ^
brought about by an improvement and certainly has contributed to
to the chapter on Modern Woman in
the
machine.
There
Automation, the strong stock market.
in which the significance of this'
which was m bad word, has be- will be an increase in the supply
trend in population is discussed.
come
commonplace, even though through stock splits, and through
over

opment

compared with

even

crease

impact of the shorter work week

Jchanged nation

;

come

billion

tbf. lab?r u"io1? leaders are overestimating its impact on employment-

...

Weiner
use

mean

living

the

problem of leisure will be¬

mated

also
handle
the
the bills in 38% of

Another important development
deals with the growing number of
family formations, a logical devel-

-j

Impact of Leisure
The

spared with males. There .areV^th resultant greater time- for
a greater numberin thP
of women, tham; leisure and cultural activities,'—,,
alpciwiniiv
men,

recreation in the past 10 years.
and hobbies have
shown

category. But

$47 billion by 1960. In
years
funds
hasf been |the tremendous both husbands and wives handle terms of assets, pension
have become a major new finan¬
increase in population.
In fact, the money together and pay the'
cial institution
this has dumbfounded the pro-, bills.
dwarfing mutual
/
funds and moving toward the $35
fessional
population ,forecasters.
This changed America, with a'
billion level in assets of mutual
Aside from this marked populamarkedly greater -population, a
tion increase, where the
savings banks and the $54 billion
gain be-* growing middle
class, a greater in
tween 1950 and 1957 amounted to
savings and loan associations.
female
labor
force,
and
more'
18
It is estimated that over threemillion, with a further sub- children
attending
schools,
all
stantial
increase
in
1958, there•> have a marked impact on the* quarters of the assets of non-in¬
also has been a radical change in
economy.
But what about the sured funds, the important ones

and

inland

why this rise should not be

standard
leisure.

Professor

Today a am wiitcmcu mainly
I
concerned nmiiuj
with a
changing America, and
-VWho can deny that it is a very

-j

;

steadily

Travel

economy, automation will
more

^dSns to men! '

bonds.

income

^_.v.• •

even

better)
C

determining policy
total
population. An important
within a company.
Yet women';
impact on the economy resulting
own
approximately
h a 1 f
or1
from this trend is the growth of
slightly, more tban half of all pension
funds, which were esti¬
savings accounts and government

Revolution in Income Distribution
a
v
v?
In addition to this revolution in:

i n-

Stances

•1

.associat^
^owth .in..leisure hme
which;! shall discuss subsethe

(and in

to the

answer

important as
an(j prefer men as stock brokers,
forced retirement increases. The
Women are seldom found on the'
number
of retired,
aged people
board of directors. They have lit-'
will;, grow in proportion to our
V0|Ge jn

increased outlays for items which

business

of automation.

the

billion.

tion of boats.

higher

by a few wealthy women, al¬
though there are more and more

rW^°tUt r,nsideratlon 0i the f.LCU-,tie5 encountered by/some E"j®v
9ba*n

C'; advisers,
such, are

$40

abroad alone amounted to $18 bil¬
lion.
We have spent 150% more

the point I want to emphasize is
that in a dynamic and growing

0'™",,

state

only

are

which fall into this

power

.
?iarket 1S a com" priced merchandise and it ex-added to the list o7 stockholders
ponent part of our economy and plains the growing volume in the
isnotneccssmilvcOTijone cannot forecast general busi- " better stores and some of the dif-; trollin®
Women generally leave

blight

money

by the Department of
Commerce, reached $16 billion.
However, if we consider other
areas of leisure expenditures, the
total would come closer to $30 or

....

out.' that

h>
j

and

classified

rising labor costs. The sensational
rise, for example, of IBM must be males are a part of that 15 million.
closely associated with the growth Note the gain in hunting licenses
in
demand
for
computing ma¬ from 6 million to 15 million dur¬
chines. There are other companies ing this period.
.

their hands.

passing,

effort

early stages

Importance of Women
Just

and

the development of
machinery
which
will
reduce
the
cost
of
on

the

widows

hangs heavy

highs
adequately reflected the long-term prospects for a
thus changing America.

have not

consumer

panies producing television sets, electric

Ijfliis

and

industry.

expenditures for services, particularly
including leisure, enhancing the
investment attraction of companies making the appurtenances
thereto, as boats. Also commends "culture stocks" of com¬

My first conclusion, therefore, is
that
you
can
be
exceedingly
optimistic regarding your invest¬
ments in companies which have

packaged food
Furthermore, there is
•vlittle else for the relatively large

mi,

their

Why is it possible

family?

payroll departments in mail orderorganizations.

life.

is to be found partly in the mechanization of the home and in the

University of Virginia

supplement

for her to do

;

women

work

women

band's income.

By A. W. ZELOMEK*

community

married

order

And the Stock Market

■;ik

work,

women

(participate

page

Chronicle

The Commercial and Financial

pealed in the expansive environ¬

Record Credit Demands Foreseen

■

high demand for funds, with

chief impact

back to

short-term area.

will

huge Treasury borrowings and higher private credit demands.
crucial problem in 1959 is to avoid inflation by

British

pace."

Thursday, Match 12, 1959

•'■

Partly because of the more ag¬
gressive rate competition in pros¬

bankeco
o m

investment funds

for

gin.
In fact," the expansion ol
mortgage debt is likely to be sec¬
ond only to the peak year 1955.
"While some slackening may de¬

company's

annual,

54-

page

Outlook

for

1959"

sued

will

velop

"Invest¬

ment

which

the course of the year,
the number of privately financed
homes put under construction in
1959
is
expected to total well
above
1.2 million," Dr. Reierson

made

his remarks in
the

stocks

and

is-

this

week.

said.

"Require-

1958,

and

critical

credit, but

consumer

factor

the

tirements

fi¬

large

nancing job of the Treasury," con¬
tinued the bank Vice-President.

other

1959 should

debt in
same

in 1958."

mates

Shifts in Investment Requirements

Also,
be

it is expected that there
a
substantial increase in

available

funds

fire, casualty
companies.

and marine insurance

adjustments,

the

state

and

smaller

aggregate in corpo¬
financing for the year is
expected, clue primarily to the re¬
cent
improvement
in
liquidity

..-V.

our latest redis¬
upward business outlook in

Barring marked

political outlook and in view of

pointing to a rise in the London Stock Ex¬
change, the British columnist reports anticipation of this would

justify considerable narrowing of the differences between the
yield on British and American first-class securities.
LONDON, Eng.
of the Bank

mutual

funds

would

1959

not

appear

unduly troublesome.

"However," Dr. Reierson warns,
"the
it

current

makes

environment

unlikely that much more

seem

long-term securities can be ab¬
sorbed
by the Treasury out of
current
savings this year. For

billion, if that, of

— The
increase
by Vz% in New

rate

York and in several other Federal

districts

Reserve

dynamic phase, with most
funds enjoying an
enthusiastic reception.
are

$6.3 billion.
Savings Flow Seen

••

other indications

plete

than.another $1

rate

increase in. view of

deterioration of international

be about the

The study esti¬

increase

;V *';

•

•.

Britain and eased tension regarding Berlin.

Finally, the investment companies

local government debt for 1958 at

Underway

and

the net increase in state and local

insufficient justification for cessation of U. S.;

buying of first-rate British equities following

likely to be resumed

sion

v '

sees

count rate

retarded somewhat in

governments,
in e n t s
for
too, will undoubtedly be in the
Matching Demands With Supply
shor t-t e r m
capital market for as heavy an
The Bankers Trust study ob¬
funds, howRoy L. Referio.
amount of financing as in 1958.
ever, are likePublic works expenditures are ad¬ serves that if the flow of savings
is well-maintained, nonbank in-,
ly to expand
vancing
persistently and,
even
considerably under the twin im¬ though the sharp rise in interest vesting institutions as a group
pact of higher demands for bank rates as well as greater voter con¬ should be able to help absorb a
loans and formidable short-term
large volume of mortgages and r
cern over mounting mosts or proj¬
borrowings by the Treasury," Dr. ects may be moderating factors, i,t corporate and municipal bond of-,
Reierson observed.
"Bank loans is
without
serious
strain,
generally agreed that municipal ferings
while at the same time
are expected to advance with the
adding"
long-term offerings in 1959 will
prospective increase in, the work¬ surpass the record of 1958. "How¬ moderately to their holdings of
ing capital req uirements. of busi-. ever," the bank economist ob¬ Government securities. Thus, the
ness and the resumption of expan¬
of
placing investment
served, "because of the rising re¬ problem
State

Einzig

in 1959.

new

local

was

seems

v: '-.J

•

Dr.

pect, mutual savings banks are
looking forward to an increase in
assets not far below 1958, while

commercial banking system.

Equities

By PAUL EINZIG

outstanding in 1959 at
in 1959 are likely to be at least as $7.2 billion, compared with $8.3 savings and loan associations are
billion in 1958.
anticipating an even larger ad¬
high as
in
1958, according to
in the previous
Bankers Trust Co.'s chief econ¬
12
Demands for mortgage money, vance than
months. The rapid rate of growth
omist Roy L.
'
however, are likely to exceed last
Reierson. The
year's level by a significant mar¬ in the assets of pension funds,
Demands

American Interest in

said

prerecession levels; rather,
probably be maintained

substantially at last year's

Concludes

financing Treasury's needs outside

Reierson, "it appears urilikely
that this flow of funds will fall
Dr.

caused by prospective

Dr. Reierson notes market uncertainty

"However,"

1959.

ment

Company's chief economist forecasts continued

Bankers Trust

(U9|)

came

com¬

surprise

o n

Even

though

progress

towards

the

come a

the

trend

London

the

Courtauld,

whole

the

business

Stock

etc.,

tended

market

and

affected by the weakness of these

recession;in

equities.

the

Mr.

United

States,

the

Exchange have be¬
major factor affecting both

Industries,

re¬

from

covery

operations

Exchange and the tendency of
sterling. The increase in the Bank
rate was followed by a fall in the
London prices of American favor¬
ites, sucil as Electric and Musical

o n.

there has been
some

American
London Stock

ob¬

The favorable effect

Khrushchev's .statement

there

was

that

ultimatum, and that

lantic have not

the deadline date of May 27 con¬
cerning the Berlin dispute was no
longer rigidly upheld, was more

noticed

than

this

servers on

side of the At¬

any

like'

infla-

'»«.

Paul

F.inzi*

tionary devel¬
opments
that
would
call
for
correction by disinflationary mon¬
etary measures. It is true, in the
United

States

ward

Britains have learnt by

perience
is

rate

the

Britain

continues in an up¬
direction.
Since, however,

spiral

wage

that

even

unable to

bitter ex¬
7% Bank
excessive

check

wiped

the effect

out

the temporary cessation of Amer¬
ican demand for British equities.

marked boom-

Sees Business

Expansion in

Britain

reality the
higher Bank rate
does

itself

not

cient
tion

provide

justification
British

that

while

cessa¬

buying
of
equities.
For
tends

change

suffi¬

the

lor

American

first-rate

effect of the
on Wall Street

hold

up business recovery in the United
ahead, therefore, the wage claims, they have doubts
whether from this point of view States it does not affect the prog¬
The continued rise in the flow Treasury in all probability will
a
3% Bank rate in the United ress of business recovery in Brit¬
resulting fi\om the sharp recovery
need
to rely heavily
on shortof
funds
to savings institutions
It now seems to be certain
States could make any difference. ain,
term
of profits. The bank has projected
financing to raise needed
that occurred in the recession of
If the object of the changq was to that we shall witness a noteworthy
funds.
It is this unprecedented
the net increase in corporate bonds 1958, cannot be expected to be re¬
check wage inflation
then the expansion of British production
combination
of
huge
Treasury
United States authorities are like¬ in Britain during the next three
borrowings and the higher private

Well-Maintained

time

some

credit

demands

rising

trend

creating

uncertainty

Illuminating Company

Illuminating Company, an
corporation (the "Company"), hereby invites
an

issue

of $25,000,000

Bonds,

—

principal amount of its First Mort gage
% Series due 1994, bearing interest from

Bids will be received

by the Company at Boom 624,
Square, Cleveland I, Ohio, up to 1] A.M.,

Eastern Standard Time, March 24, 1959,

or on

such

later date as may be fixed
by the Company as provided
in the Statement of Terms and Conditions. Prior to
the acceptance

with

copy

of any hid, the bidder will be furnished
of a Prospectus which meets the require¬

of Section 10 (a) of the Securities Act of
1933,
amended, at that lime. Bids will be considered only

ments
as

able to meet the
,

will

called

to add
significantly, to its
upon

further, and
holdings of. Treasury, obligations
in the

course

of 1959.

fairly

can

be held

moderate proportions, the
likely to be a substan¬

result

commercial

banking system."

from bidders who have received

copies of such Pros¬
pectus and only if made in accordance with and subject

the

terms

Terms

and conditions

set

forth in the Statement

and

Conditions, including the filing of
questionnaires. Copies of such Prospectus, the State¬
ment of Terms and Conditions, and all other relevant
documents referred

amined and obtained
the

in said

Statement,

may

ex¬

the office of the

Secretary of
Company, Boom 210, 55 Public Square, Cleveland

1, Ohio.
Dated: March 10, 1959
,

■'

The Cleveland Electric

Illuminating Company,

Correction
In the
Feb.

"Financial Chronicle"

Maxwell
been

indicated

was

that

Pringle & Co., Inc. had

formed

offices

with

Broadway, New York City, to en¬
gage in a securities business. While
the

firm

istered

has

with

just
the

become

Securities

reg¬
and

Exchange Commission as
a
broker-dealer, it was established
in 1952 as mortgage loan brokers,
specializing in FHA insured and
VA guaranteed

mortgages, operat¬
ing in all forty-nine states, Puerto
Rico, Hawaii, etc.

By Elmer L. Lindseth,
President

last-be¬
ginning to produce their Jongdelayed
effect.
Moreover,
the
Budget statement on April 7 is

it at Britain's expense.
The

the

alternative

explanation

is that the United States

move

check

want

the

est

differential

markets

money
an

the

between

Richard

Gray

branch office
New York

has

at 21

City.

opened

East 40th St.,
•

are

administer

certain to

increase in the New York Bank
In fact there is

rate.

reason

expect that the change will affect
the
international
movement
of
funds considerably. Sterling weak¬

relation to

dollar, but remained
worthy premium.

On the other hand, the

the

note¬

increase

of the American Bank rates tends

influence

the

movement

funds

however, there is relatively little
foreign interest in Wall Street,
partly because prices are consid¬
ered to be too high and partly
because of the feeling of uncer¬

Effect

consider¬

British Securities

fresh

for

demand

high-

class British

equities which offer
a
much
higher yield than the
corresponding class of American
equities. In such circumstances a
move

rise

which

Wall

check

tends

Street

also

the

tends to

discourage the flow of American
To the extent to

effect

produced the

rate in New York
help in safeguarding
the American gold reserves.

higher

Bank

does in fact

rate

income

tax

will be reduced from 8s.6d. in the

A reduction by a
shilling in the rate is bound
production and
consulnptioxi. Under the British
"pay as you earn" system wage
earners and salary earners stand
to benefit immediately by the cut,

pound to 7s.6d.
full

to encourage both

for the amount reduced, from their

weekly

packets

pay

would

tax

for

income
In

smaller.

become

millions of households there would
be

money available for con¬
spending. Even though

sumer

business

firms

would

not

derive

immediate benefit from the cut of
their taxes, the

anticipation of the

increase

eventual

their

net

profit margins as a result of lower
taxation
is
likely to encourage
them

expand

their output.

large number of capital issues by
British

firms

expected

made in the near future to finance
new

investment programs.

The Chancellor of the

Exchequer

also

the repayment of postwar

considerable

After each rise in Wall Street

there

considered certain that

now

standard

expected to announce the
Government's decision to speed up

American interest in British equi¬
ties.

the

tainty about the dollar.

There is, however,

It is

two

narrowed by

was

which this

Branch

so.

measures

Since

gold.

funds to London.

New Gray

tionary

able additional dose of reflation,
Britain
much of which is likely to produce
appears to be reluctant to lower
an
immediate effect.
the Bank rate to 3M>%, the inter¬
of

indirectly, through its effect
tially greater increase in the vol¬ on American buying of British
ume of bank deposits, and
hence equities. It certainly halted the
in the money supply, than is con¬
rising trend on Wall Street. In the
sistent with the restraint of in¬
old days this would have produced
flationary pressures. The crucial an adverse effect on the dollar,
problem in the credit picture for because it would have discouraged
1959, therefore, is meeting as much the inflow of foreign capital for
of
the
Treasury's financing re¬ investment or speculation in
quirements as is possible outside American
equities.
At present,
the

refla-

recent

months

a lesson at their own
instead of having learnt

ened somewhat

"However," the economist con¬
tinues, "unless net acquisitions of
Government
securities
by
the
commercial banks

April 1, 1959.
55 Public

1955,

were

The

ly to learn
expense

authorities

when commercial
huge
loan
demands through
sales of
Government securities, the pros¬
pect today is that the banking sys¬
tem

The Cleveland Electric

market

Unlike

banks

c/c Series Due 1991

amount

debt

Debt Management the Problem

$25,000,000 Principal Amouut First Mortgage Bonds.

purchase of the entire

outflow

Public Invitation for Bids for the Purchase of

bids for the

the

that

the

over

place."

Ohio

problems

keen

business

management and casts continuing"

The Cleveland Electric

—

indicated

credits.

The

outstanding amount of these
postwar credits
is about
£430
million, and the Chancellor is ex¬
pected to repay ahead of schedule
at

least

the

£100

million

soon

after

It seems
highly probable
that most re¬
cipients of these payments would
regard the amounts received as a
windfall and would spend most of
it without much delay. Together
Budget

with!

the

packets

statement.

increases

the

ductions for income tax,.-this
result

pay

result of smaller re¬
will

considerable: increase

Volume

189

Number 5828

demand

consumer

during

The Commercial and Financial
Chronicle

(il97)

the

leases in Kansas, Oklahoma, Colorado, Wyoming, Utah and Texas

spring.
So

long

May

revival

"ultimatum"

force

change.

would

the

not

For

out

anticipation

that would be due to

some

time

war

the

was written
that assumption. But now that
the time limit has been made elas¬
tic the war scares are liable to
on

fore

later, possibly not be¬

June

or
July.
This would
give investors time to benefit by

the effect of the business
recovery
on Stock
Exchange prices, without

risking being caught in
due

war

slump

before

scare

they
had tune to take their profits.
Moreover, Mr. Macmillan's
Moscow visit created

impression
expected

Britain,

that

pression

favorable

this

the

and

will

chances of rhe Conservative Party
to win the general election will
tend

change.
there

help the Stock Ex¬
is

will

that

certain

now

that

spring election,

investors

need

interest to

not

of underwriters who distributed that
portion

group

of the stock to the
public in

June, 1955.

finally completed Pioneer became

was

When the reorganization

gas transmission and dis¬

tributing utility company, and Amarillo Oil Company
(a fullyowned subsidiary with leases in the
Panhandle field) supplied
to

gas

the parent

In the

company.

past year

two

other

subsidiaries—Pioneer Production and Pioneer
Gathering System
have been set up.
A neighboring utility company—-Empire
Southern

Gas

Company, about one-eighth the size

also acquired in

was

March, 1958, by

Pioneer Natural Gas
Texas
rural

and

one

areas)

Panhandle

900,000.

over

Pioneer-

exchange of shares.

Louisiana, total population

being

served

Amarillo arid

(including

Lubbock

sections

with

their

important oil

the

are

and

gas

resources,

areas in central Texas which

wheat, cotton and grain sorghum, plus livestock. The southern
is in

area

the

Permian

Basin, which contains about 25% of the

being caught in the slump that is

nation's oil resources; oil and gas production

almost certain to precede the elec¬
tion until September or October.

tions with 4ong-lived reserves.

■

Sees Narrowing of Yields

of the

international political out¬

look at any moment as a result of
some

aggressive statement

new

action

by Mr.

Khrushchev,

before the conference
has

reached

deadlock.

setback would of

long

Such

business
the

Britain

tax

cuts

towards

change.

The anticipation

rise

the

from sale of natural gas

are

products.
36%,

Pioneer's 1957 gas

practically 100% of the heating load in its
water

and

rev¬

some\90% of the

area,

heating load, and 85% of the cooking load.

to pump water for

gas

Investment
about

$11

about

60%

facilities

million.
less

irrigation began in 1953 and

The

than

serve

present

irrigation pumping is

price

competitive

fuels,

supply is. considered ample for

Altogether,
with

7,500 to 8,000
has

for

gas

hence

Pioneer

now

has

many

irrigation

the

farmer

new

tripled in 12

of new

about

190,000

accounts each year.

Cashier in

1949 has

had

Pioneer to such

and is

presently

rate

secure

■■

■

of Stock

Mr.
&
in

Railroad Commission.

The city of

Amarillo, where the company's

needed

the

offset

increasing

increase of nearly

costs.

the

entire

system operations only the sales of gas by Pioneer Production
and Pioneer

Gathering

are

interstate in character and thus subject

to FPC jurisdiction.

Construction expenditures are expected
million
cash

year over

the next five years and

large part of these

requirements will be generated internally.

has been offered to the public (except

quisition of properties)
public financing of

31,

1957

debt and
about

are

to average about $8
a

stock

common

since the reorganization in 1953 and

kind is presently planned for 1959.

any

capitalization

$19 million

in connection with the

consisted

1,646,000 shares of

(about 35%).

There

stock outstanding.

common

While the company does not

1956.

customers,

and

quadrupled since 1948.
through acquisition

Empire Southern

ordinarily sell gas appliances, it

has cooperated with Arkansas Louisiana Gas by

selling that

com¬

were

Arkla-Servel air conditioning units and gas lights; in

sold, and with increased production of the air conditioners,

Share earnings of Pioneer Natural Gas have increased steadily

since the stock
to

not

was

distributed to the public—from $1.34 in 1953

was

$2.22 in 1953.

Earnings increased

fact that the important

the other hand

the iong drought).

further
1958.

number of

local

economy

weather

possibly

about

running about

was

benefited

Share earnings for 1959

improvement,

The

appear

the

even

minimum
ending

has

Pioneer produced

the

remainder

others.

14%

excess

gas,

ratio

same

with last

year

35^.

Natural

Gas has

been

quoted over-counter recently

The present dividend rate is $1.40 making the yield

of its gas sales requirements, purchasing

"residue"

in 1954.
oil

gas

directly from

dividend

would

seem

about 16 times 1958

possible

1959.

The

stock

selling at

earnings.

is purchased in the Permian

which is produced with oil, must be

taken

The company owns or has under contract gas reserves
of two trillion

Amarillo Oil

and

available, but in 1957

through Amarillo Oil Company

Considerable

available.

not yet

was

cf, representing about

It has current production
reserves

3,000,000 barrels.

30-year supply.

subsidiary when Pioneer

(proven

and

over

developed)

It also has about 100,000

was

reorganized

1,000 barrels
estimated
acres of

Governor of the

been

per

FIRST

day

nearly

gotdfuoedt COMPANY

PIONEER NATURAL
Bankers

Investment

GAS COMPANY

DALLAS

undeveloped
COMMON STOCK

BOUGHT

SOLO

QUOTED

security
analyst with various Wall Street
firms for the past 15 years. Since

1943, he has been
New

Abilene

•

Houston

•

Lubbock

•

Plainview

lecturer at the

Institute

York

Finance

■

San Antonio

•

Tyler

Pioneer Natural Gas Co.

and, in conjunction -with Benjamin

Graham,
book

"The

is co-author
Interpretation

the

Fi¬

nancial Statements."
Walston &
offices
and

Pioneer Natural Gas

Co., Inc., which has
cities

overseas,

coast

Company

coast

Common Stock

holds memberships

in the New York Stock

Exchange

and other leading exchanges.

Two With
s

Bingham, Walter

Unlisted

Trading Department

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—George
Alvin Portnoy are
now
associated
with
Bingham,
Walter & Hurry, Inc., 621 South
Spring Street, members of the Pa¬
Kunitake and

cific

Coast

Kunitake

Stock
was

Exchange.

previously

WERTHEIM & CO.
Members

New

York

Stock

Exchange

myyener

1500

NEW

Republic National Bank Bldg.

YORK

Mr.

DALLAS 1,

with

Quincy Cass Associates.

likely to show

degree-days.

Pioneer

around

the

despite the

by 9d in 1958

irrigation pumping load

close to 4%; with a payout of only 63%, another increase in the
are

Exchange Firms.
joined Walston
manager of research

million long-term

$35

stock equity

common

ac¬

As of

McGolrick

Co., lnc

has been able

years

Cashier's Division of the Associa¬
tion

•

increases without having to appeal to the Texas

headquarters is located, has recently granted

regulation.

Nineteen-fifty-eight figures

40 years

curities firms. He is past President
of the Curb Cashier's Association

W-X-"-

nicipalities it serves, and during the past few
to

The number of customers

years and revenues have

properties when advantageous.

Basin; this

experience in cashier and account¬
ing operations with several se¬

:-'y'

Pioneer Natural Gas enjoys excellent relations with the mu¬

(on

subject to Federal regulation, hence the acquisition did not subject

Co.,

joined
as
Senior

At the end of 1957 it controlled 400 billion cf gas

reserves.

can

annual growth rate of about 5%, they expect to add about

Vice-Presidents and

voting stockholders.
Mr.
Deignan,
who
Walston
&
Co., Inc.

pressor station.

the amount of sales will probably be stepped up.

C. Wal9ton, President of the

McGolrick

about $2.9

now

years.

Pioneer will continue to expand its operations

74 Wall Street, New York
City, has announced the election
of Leo P. Deignan and Charles

The company expended

campaigns, 50 air conditioning units and 1,000 gas lights

providing

water

Inc.,

Pipeline.

It operates in West Texas

gas in that area which it sells

recent

has been increasing rapidly since that time.

first-class equities.

Basin

profit—with

half of the 43,000 irrigation wells in the farm belt—the
program

rowing of the difference between
the yield on British and American

investment firm of Walston &

border, gathering

1958, picked

new

this

V.-Ps. of Walston Go.

Approximately $1,-

pany's

would justify a considerable nar¬

Deignan, McGolrick

dry holes;

nearly

serves

Ex¬

Permian

The company has

afford to construct lines to connect his wells with the
company's
lateral lines extending into the irrigation area. The
underground

point

Stock

wells and nine

million in 1957 to build 71 miles of pipeline together with a com¬

irrigation 33%, industrial

affect the

course

outlook

prospects

from deep forma¬

are

15%, commercial 10%, and miscellaneous 6%.

Stock

Exchange, and it is entirely
unpredictable.
But barring such
event, the improvement of the

Dec.

revenues

residential accounted for

enues,

Berlin

over

...About 93% of system

and 7% from oil and extracted

Needless to say, there is always
risk of a marked deterioration

the Mexican

near

12%,

supplies gas to 76 communities in

now

together with rich irrigated farming
raise

gas

Pioneer Gathering only started in January,

largest cities served. The territory includes the South Plains and

fear

if.-.'

wells, 14

possibilities for further development.

Oil Company.
Southwestern
dissolved, and in July, 1954 Sinclair sold its

were

par¬

500,000 is being spent annually for drilling and exploration.

Company and Sinclair

Oil

com¬

(a recently formed subsidiary)

operations July 1, and now is beginning to show

Mission

ex¬

public
future.

opinion surveys in the near
The apparent improvement of the

also

and

Company

Gas

find

result

Mission

Natural

than when the

now

began business in January, 1954 as
Southwestern Development
Company, controlled by

deadline.

My last week's article

much

Pioneer

occur

successor

before

Pioneer Production

ticipated in 35 completed drilling operations, which resulted in 12
oil

Pioneer Natural Gas

the

scares

During the .first 11 months of 1958, Amarillo

Oil and

By OWEN ELY

Ex¬

being worth

pany bought them.

Utility Securities

greatly

Stock

people would

many

have

London

preferred

market

occur

-^all of these lands

Public

business

resulting from these fiscal

benefited
have

was

measures
i

the

TEXAS

The Commercial and Financial Chronicle

(1198)

It's Illogical to Buy Stocks
_ft
As a Hedge Against inflation
By ROGER W. BABSON

The dean of financial writers

believes in the imminence of

costs

Except for intermittent periods
of deflation, we have had a

slow
but constant inflation for as long
as statistics are available.
In fact,
reason

edges
they

cannot

clipped—so
little

gold

complete
scrapping
of
existing
plant. The design of the factory,
the machine tools, the
control

against

inflation.
Just1-

mechanisms, and the materialsequipment
would
all
have to be integrated. The plant
handling

n o w

almost

everyis excited

one

about

normal inflation will conbut I anticipate nothing

course,

tinue;
serious

unless

breaks

out.

will be

World

If you

War

III

believe there

land

winch

vvUI

especially
ocean,
stocks

now

inflation

taxes,
bordeung
an

land

lake,

river.

Buying-

hedge

its

earn

against

waste of money.

There

has

oeen

period

.A™e!?can history when

serious
inflcifion accompanied
unemployment and heavy imports. Increasing federal and personal debt is

only

one

mam

cause

with

cause
is

inflation.

scarcity of goods

increased

The

demand

for

have

a
delicate balance.
Such a
plant would largely depend upon

production of

mass

single prod-

riot.

European countries.
The
new
President

what

Companies

Automation

Following is

Most,

importance of
in significant industries. Coal, copper, and gold min-

wage%osts

f^ber

listed

not

With present foreign competition and its increasing supply
of

cheap labor causing

mestic
be

unemployment,

there

docan

The table
shows
where
the
pressure
to
adopt automation will be greatest.
Management and labor must become more professional and tech11icai.
The labor force will adopt
broad rearrangement.
This also
appRes to education. Wise young
people should now train for the
Automation Era
planning, selljng, an(j financing its adoptions high costs.

Wages

Also

Per Cent, of Gross Sales,

Per Cent Added by Labor

scarcity of goods.

Automation Is Increasing
•

•„Jr/-0n Iab?'\<:ould

inflation; but the
tion

rnuZ!5

cause price
of

use

automa-

manufacturers is fast

our

keenill"

to Gross Added

with
i_
7

lahnr'c

rlomnnrl«

S 9eAmanas;

Inc use of photon
by printers, of
electronics by
manufacturers, and
of other
labor-saving devices by
businessmen will partly hold

down

prices.

The chief companies

r^°mni0u devif

s.are
Aeroquip Corp., Beckman Instruments,
Bullard
Co.,
Cincinnati
Milling Machine Cutler-Hammer,
Inc., Ex-Cell-O Coipoiation, General

Precision, IBM., Sperry Rand

&rKAearney & Trecker Corpm

'" "

now

lick

economic

cannot

war.

Russia
Russia

in
all

Canada

ance, a

due

conditions

require
a

France.

ers

not

against
dpt

gel

our
our

"man-on-horse-

""id

the

la'^or

up-to-date check with
bn<;irip«
at
shows
present time as "very eood "

manufacturers
ar

adont

TO adopt
"nmpel our bankthe great
costly

Automation

be defined as
the automatic processing ^f raw
or semi-processed materials into
finished
products.
The
typical
manufacturing
plant
of
today
consists

nected

machines

but

that

uncon-

perform

$13

assets

million

and

highest
6,1,1

lion. There

the

;
^

low

high of 36V2 in 1956, in which

Chemicals

Gypsum

Oil.__

Products

dividends
35

4,1

Bakery Products

10%'in

g
Bread

paid

plus

In'the

—

Department Stores well

strated

nast

cement

from

Machinery

Electrical Appliances

population

thm

vear^

bought

downside, and

with

Metal Fabricating

chance

Electl'ic Apparatus

nnmmmr

Motor

Vehicles

"IZIIIJ™!

Aircraft & Parts

Machines

capital

^national prod-

Vitreous

Enameled

Carl

Metal

Products

Textile Machinery

p„"iqko

Loeb, Rhoades & Co.,
Street, New York City,

Exchange

than tripled

schools,

Finally, let
and

say:

stock

prices are now abnormally
inflated.
Labor
will
be
held in check by automation. This
leaves the stock market as the
it

common

sense

factor.

buy stocks

Gene

__•*

over

I8"'0-

Is
as

With

in¬

can

for

be consid¬

the complement of life in- ;
Life insurance is needed <

safeguard against premature

ex-

of annuity

ciaamoria1 iorm oi annuuj

•

expressed
expressed

1S
15

terms
terms

of
oi

foliar amounts. It operates

lows.

Supjiose

4". takes out

age

contract,

fixed
iixea

retirement

fol-

individual

under

which

Kidder, Peabody

(Special to The Financial Chronicle)

at
an-

and.

company

doesn t know how long

veloped actuarial methods,

in-'

company can, by contract,,
to an mdiyiaual^^that he,

nuity contracts would establish a '

large extent

in common

stock

and

Bon

which

are used solely for reporting purposes, change in value m

accordance

s what it
in-Hntinn^ ^ q?r
^^lat . a
8
n^innHh!
^

the

investment

^he. Variable ^ontract:
refiecting the current unit values.

the

'In

t'irst *

year,

the

contract

be credited with 65 units,
year 75 units, and so

the second

A'accumulatedannuitant might
386 65' ^
ajotal of, say,

fofprtce 9ferelB changes "thereat

time> actuarial tables in the con-

othe1' way~an 1880 dollar «as the °"'
equivalent in purchasing

with

units could be credited each year,:

disposable

income

per

power

family

l!!LWas

dein PeabodvG&t}Co st 7f5 Federal
Street
Federal

come of about S100 a month,

Ana to

„

to $a,800, almost

^rtnership^i? AprU'l TeXaS t0

Only labor

most inflated economic

admit

life

in retirement.

crease - i eflecris

of the New York Stock

will

as
^

product

TPath^unvu\\\^"Trp'nPPrfprf'aTa

Inc^fsu^nHMlfs^'lB^

Restaurants g.

Wall

woat

about $660, in terms of that
year's dollars.*

members

ered

surance.

been

They

many years.

?"1 surance

have

company

per

To Admit to Firm

Office and Store Machines

leisure,

even

Garl M. Loeb, Rhoades

Hosiery—Full Fashioned—

following

was

44
46

substantial

surance

as under the traditional:
enjoying form of annuity. As each paymentis received by the insurance com- •
1880, the disposable income Pa"y, the contract is credited with
family, i.e.% after all taxes, a number of units. These units,.

latl0n

the

better than

27
Steel

for

Annuities

creasing proportions of our popu- 65, just

can

risk

••

this happened while the average and other equity securities. An inwork-vyeek was dropping by over dividual securing a variable re-:
one-third from 63 hours to 40 tircment annuity contract at age •
hours, and while there were in- 4o could pay $fc> a month to age •

appreciation.

Ma"ifneBTo?isW°Ven G°°ds

small

gross

as hlSH 111

ron

thp

devel¬

real gross lla" segregated^ account known as a
f101}a^ product on a pci capita Variable Contract Account the
basis, was nevertheless oui times assets of which would be invested

dpriwd

opinion,

been

;,ame

(which may ainount to 10%
20% of total sales of the com-

.stock,

annuity and why have

annuities

This growth will not outlive his income,
HT^ular^and had its ups and -How does a variable annuity
downs, but over the period, it was contract differ? In the first place,
very persistent. Even though our a company offering variable anT

were

pxncctcd

nanv

the

been in 1880.

stock

hnsinpsc

annuities?

Tas

Garlock hn* Hpmnn-

now

thp

"™,i„

year

traSs

£ipe/ ,Welded & Riveted___

per

sold

against

ability to show good
earnings.
With
the
probability
that during the next few years tho

ic>

___

562

It
as

its

onfirolv

Tractors

therefore

bJilVLenv<;?' 20 yf?rS; By

1958

enterprise

variable

■

nuity

of abcut 3% a year, almost dou-

Market.

American

uct: oul' iotal Production of goods he—or any otiier annuitant—will'
m'a a*v»ees. increased at a rate live. But by applying well de--

the Over-

pays an insurance company $65
u'v,',1,'1!,0 !1'1' ? month to age 65. At that time
X-V,;C i ll
1 he would begin to ge. a life in-

vipld<; 3 *()<%

23V4

ap-

2QK

the
me
"T?0,.""

•

1958, our real

The stock is traded

has
with

comparisons are after adjusting for it would be paid to him for as
P"c„e level changes. From 1830 to long as he hved. The insurance

being paid at the
bl 280 quarterly. The stock,

the-Counter

livin^
nvinh

sufficiently

not

made-

amount

arc

colling around

and

.Changs over the years .in the

Drugs

.NonlerrouB^Metol''products it
organic

current

are

navable

pioneer

enterprise haastion of our funds.
simply, the
TJie traditional form

of
oi

predated

only 493,645 shares
outstanding. There are

stock

notes

Very

woild has ever known. I believe
'
rCi Slgl)^19a9ce,
Is accom"

liabilities of'sVightly"over

American

standard
oidiiadiQ

I'Tij".

better

FS^iSnJl8__~III2riZri

may

than

Dividends

Requirements of Automation

current

sheet

the

SuaM a-^
has

accomplished?

jsheet, pllshttient

Transportation

dlAlTfifPOVPrs
ciAd igeuvcxs,

shows

balance
balance

Shipbuilding & Repairs

finance

comnanv's
company s

providing what the public

What

the

legislation

unions, but to

TuahiifflptiirprQ

automation
ers

dictator like deGauHe
Hence I advise read-

unusual
An
the com-

pany

Thc
The

all

needs.

expenses;

standard-

our

Variable

tance of

partly to

growth, not

evidenced

Annuities—Traditional and

M. Shanks

mass

economic

Com Products

gn-Md MnSe7y"~: fi

and

non-recurring

Carrol

per

decline

general

dis-

fields, including insurbig reason for success has
been fhe recognition of. the impor-

discipline.

back1''

partly

and

This

1957.

ction

was

share against $3.33

per

oped?

figure includes 1958 when earnings are estimated to be about
share for

What

variable
,

participation in the fruits of successful
enterprise.

$1.30

boldness

What is

past 53 years. Average fearnings for the past five years has
been
about $3 per share.
This

the

_—_—______

and

increase in

share the results.

mass

the increase in prices,-

real economic

living. Just think of the vast
improvement in housing over that,
period.
This
has
been
accom¬
plished by American enterprise—

been

much

This is

tribution, but

very real

bold- enough
to emphasize
p r o

•

in 1880. In other words,
the average income, in dollars,
went up two and one-half times

;

have

great

inflation.

tal, and skilled
labor,
we

not only

Beet sugar

our

technology,

subsidiary ' com-

cane Sugar Refining,
Meat Products

Medicines

o u

paid cash dividends each year for

rate

might

the

other things, participation in the

among

fruits of rising productivity.

invested capi-

million

States;and

unions in our
country would
only
mean
death
for
any
political party advocating it, but

United

the

labor

not

Garlock
employs
about
1,825
people; at its principal plant in
Palmyra, N. Y. Another 800 employees
serve
in
the
30
sales
districts located in the principal

cities

lack of understand¬

developments—such

new

acquire- American en-"
ment by Garlock in 195.% and has
t e r p r. i s e?2.
subsequently continued
in that Combining the
post.
*
"effects of

23.

________

Agricultural

to abolish

the U.

cigarctts

Tires*& inne?aTubcs

To attempt

President

Flour, Grain Mill Products.

paid and promoted according
to
their
efficiency and output.
Russia has the population and the

are

policies and permit,

the

Petroleum Refining
Grocery & Meat Stores

to Cost

Sales

fear of

need to supplement fixed dollar annuities and life
insurance

$2,700,000 due in installments to
June 30, 1972. Cash in about $2

Industry—

from

some

Gasket Company until its

%
Wages

Wages
TT

.-y»

dent Shanks says some of it stems from

ing and

elected in January this
is Albert J. McMullen, who.
-Tfie expression "American enis 47 years of age. He brings to terprise" is often bandied
about,
the Presidency a background of but
seldom,. I suspect, thought
17
years
of capable managerial about. ; What
is
so
essentially
experience in the industry.
He American

—

goods.

little

company,

being sought

now

opposition of those who

reproves

has operated at a
profit since its inception and has

cating the relative

{
fighin'
_aiso have

Mr. Shanks

Turning to the opposition within the insurance industry. Presi¬

This company

Need

tabulation indi-

for, variable -annuities?

case

Jersey.

year,

served

SlIANKS*

about the insurance business that
they can
allege we are relatively unregulated and untried." He finds it
inconsistent to urge an increased and broadened flow of sav¬
ings into, equity capital and yet oppose variable annuities.

panies.

during
10 years, then forget in-

*1 y°u. d° axPe<jt .such a
the best investment
good

would

World War III

the next

to be scientifically engineered, and the flow
of materials planned and timed
layout

in-

flation.

adoption of full automation
often require an almost

would

stolen

hedge

The

silver

can no

advances the

"know

CARROL

head *. forth rightly criticizes mutual fund, stock
^xdhange representatives, and insurance opponents of, and

I Like Best

Ironic controls,

-Prudential

successive steps in the creation.ofk
a final product. Separate persons
operate these machines and transfer the work from one machine Montccatini, manufactures fluoroto another.
Under full automa^* carbon products in Italy and other

the

Continued from page

become a
single giant machine, drawing in
raw materials at one
enc* and
pouring out finished goods at the
other—all being directed by elee-

coins have

ver

rough

timber holdings.

;

in New

tion, the plant would

sil-

and

gold

may1 be
one
exception—
namely, stocks of companies hav¬

r".

President, The Prudential Insurance Company of America
Newark, N. J.

likely to resort to automation to combat inflated labor
and names the principal suppliers of automation devices.

most

the

ing large productive land with oil,

mineral,

Opponents
U. S. Growth

War—

There

He lists industries

war.

World

purchase of stocks, as an in¬
hedge, at their present
inflated
prices
seems
illogical.

exception of stock companies having large productive

one

is to suffer

flation

price—with
land
with oil, mineral or timber holdings. Mr. Babson advises to
"forget inflation" if you believe no World War HI will break
out in next 10 years and to buy good land rather than stocks

Thursday, March 12, 195&

Annuities'

things? Surely this , is "trying to
pull yourself up by your, boot¬
straps."
Good stocks are now.
okay for income, but unless Uhe
U.

when;

the most inflatedmf alTJ

are

the

scoffs at resort to stocks

hedge against inflation at their present inflated
one

inflation

against

hedge

stocks

*An a<»dre«s by Mr. Shanks before the

Kiwanis Club of Newark, N. J., Feb. 19,
1959.

^af'"ligbtn,'

semitnydna
— 7^^Tmonth'to
life.

r
For purely illustrative purpurely illustrative pur-

Continued

page

Volume

189

Number 5823

The Commercial and Financial Chronicle

(1199)

Now

you

can

get the car you want

The

shortages of '59 Cars of The Forward Look

You

can now

you

car, we say

There

are

ing

one

waiting

car you

of the

many

want.

many

"Thanks for

Discover for

rapidly ending.

get prompt delivery on the model, color and equipment

want, in the

If you are one

are

people who have been waiting for

your

your new

patience."

great differences among the new cars available today.

yourself the difference great engineering makes by driv¬

of the quality

cars

of The Forward Look. Your dealer has one

now.

Chrysler Corporation

PLYMOUTH

DODGE

Built for the 1

DE SOTO
man

•

CHRYSLER

in 4 who wants

•

IMPERIAL

little bit

The Commercial and Financial Chronicle

(1200)

THE MARKET

its

fhe

By WALLACE STREETE

diversification

Our

back toy¬ other line to United's varied duced from

were

third its

in the
Rails were quiet and re¬
by the Federal strained for the most with the
Reserve proving only a onecarloading reports showing a
day deterrent.
tendency to level off instead
*
#
*
of
improving steadily. The
Some of the drugs, elec¬ railroad supp 1 y companies
tronics and Thiokol in the also were neglected until the
the latest boost

over

discount rate

rocket fuel section

the extent

were

Tiie

the

dependence

Expanding

generally
Drugs stirred occasionally
ragged, American Motors with tales of new wonder
wavering uncertainty over products lifting first one, theii
the prospects of greatly inten¬
another, into the limelight
sified competition if the Big with Vick rather
dominating
Three

decide

the the field this week

enter

some

car

Inflation

jump into the picture.

subject to considerable disagreement since there are those in
financial district who point out that the
sharp uptrend of
in the equity market, as well as the recent increase in the
Central Bank rate, is in no small measure to the fear of the

the

future purchasing power of the
monetary

let-up in this

available

prominent
known

the low last

plans to
financing will
pose new competition for the
financing companies are part

car

well

was

refunding or new money raising purposes
the foreseeable future. However, there does not
appear to be

too much agreement as to the future

policy of the Treasury in its

new money raising ventures, since there are not
few money market specialists who contend that a
rising bond
market will bring with it an
a

obligations.
extend the

offering of long-term Government
Evidently, it is still the desire of the "Treasury to
maturity of the debt and at the same time be able to

have these issues go into the hands of the ultimate investor.
By
this method there would not be an increase in either the
money
:

supply

deposits and in this

way

the forces of inflation would be

lessoned.

Even

though the Treasury may not resort to the flotation of a
long-term issue to finance its new money needs and for refunding
purposes in the near future there is always the threat that this
will take place and, accordingly, it is the opinion in some quarters

sales impor¬

that this will tend to put a ceiling on the amount of rise pricethat the most distant Governments will have. "It is well

wise

known that the

vailing

Treasury will tailor its issues to meet the pre¬

market conditions and, if the capital market is the
the greater advantage to them as time goes

money

which

one

will go through. The finance
with steel consumers
Another skyrocket o c c a stocking-up in case there is a sionally is Zenith Radio but companies were able to show
midyear strike, and with auto here the earnings record is good profit stability last year
when car sales were lower so
sales lagging. Aircrafts were
outstanding J a n d last year
all projections of this year's
not in any great demand and
when other companies were
results point to improvement,
forecasts that Boeing's profit
having a rough time Zenith
this year will decline further,
jumped its sales 22%, profits
after falling to $4.01 a share
Food items have been some-.
48% and even its shipments
last year from 1957's $5.28, of television sets were
up what neglected lately al¬
was
hardly likely tp bolster 15 % while the industry sales though National Biscuit is one
that particular issue.
Oils were reaching their lowest service's stock of the month
were also a depressed section
point in nine years. For the selection, largely in the hope
and had to contend with a
first quarter of this year sales that its attempts to diversify

offers

along, it should not be unexpected if
used for what ever purpose

a long-term security were
the Government may choose.

Views of Short-Term Adherents
On the other

hand, there

are

beliefs around that the Treasury

will confine its operations during the coming year entirely to the
short- and-intermediate maturities, with the longest issues limited
to be not

more than five years in length.
It is evident that there is
appetite for the most liquid Government obligations and, even
higher discount rate and increased offerings of the
Treasury bills, the short-term market is acting well. If there
should be some lessening in the liquidity preference idea it might
be that the Treasury could get away with a short note maturity
for some of its operations. As against this, there is the inflation
psychology which generally carries with it, the uncertainty that
demands short-term liquid issues for salability and the hedge
they provide.
/:/
an

in face of 1he

note when

import quotas ran 25% ahead of last year, outside the cookie and cracker
pared 15%.
;
although the stock in advanc¬ field in which it is predomi¬
ing from last year's low of be¬ nant. An incidental benefit to
.An Awakening Textile. •

it is

And

refunding and

was

were

so.

fact

lor

what

new

inflationary spiral is not generally conducive to

ernment bonds for either

car

higher

it has been in the last year

that prices in the capital market had tended to
due mainly to smaller corporate bond offerings and
the belief that there will not be
any flotations of long-term Gov¬

Fears that Ford's

the

Long Treasury Issue Strong Possibility

the nancing of boats, a booming

year

that

The

equivalent of 20 in 1957, be¬ field, and should benefit from
low

see

rising bond prices.

Anti-trust eying of
considerable and this year has sold above tantly.
Ford's plan has also added a
skepticism around, over the 150.
new doubt whether the plan
state of the market generally,
There

unit, and they

concern.

Also, there have not been too many instances in which there
has been a rising bond market and a rising stock market at the
same time,
especially since the inflation psychology has been as'%!"

drug preparations.. The
was

quite as strong as it was in
on the inflation psychology

prices

field. The

that it would not be the first latter

not

However, the opinions

are

improve
reenter

Psychology Persists

quarters that the inflation fear is
the recent past.

Financing Competition

if General Motors and Ford work rather than from talk of mercial credit. This company
decide to do so, t>ut indicated hew
recently expanded into fi¬

the economy as a whole.

sharply reduced volume of corporate bond offerings,
along with the absence of a new long-term Treasury issue, to-,
gether with a turndown in housing starts, had produced a recovery
in bond prices.
To this might be added also the belief in some

only defi¬ definitely lusty moves both of the reason that finance
nite statement from the top
shares
were: well
deflated
ways. Thiokol Chemical was
makers -was Chrysler's an¬ also a wide
from their 1958-59 highs and
moving item but
o f f er
nouncement that it was in here
the
motivation
above-average yields
came
position to get into the field from its activities in rocket running nearly to 5% in Com¬
small

well

were

Auto

The

forged, to a new engineering work to minimize
definite upswing, the budding
peak for 1958-59 but without its dependence on the varying
chemical operation is a candi¬
fortunes of the carriers.
yet challenging its 1956 peak.
date for a good upswing this
Motors Ragged
Drugs Stirring
year.
Motors

last

famed

with industrial chemicals in

issue

x^t.iKs

By pushing up the discount rate, the Federal Reserve Banks
indicate that they are still
very much concerned with the inflation
problem and its effects upon the purchasing power of the dollar

brighter stars, with some of work being done by the car¬
for its beverage line, has been
the steels doing better at riers this year is more evi¬
times as the mills continued dent. Yields in this section making strides in the chem¬
ical field that, for the first
to hum busily. The tire shares run to more than 614% in
were also in good demand at Pullman despite the fact that time, nudged past liquor sales.
For all of last year the chemi¬
times, although Goodyear was the company has been diversi¬
cal activities only accounted
somewhat reactionary as fying into non-rail lines and
for slightly more than a third
profit-taking moved in after had a dividend record un¬
of profits, however. Last
its good climb. U. S. Rubber, broken since 1867. In addition
the r a i 1 cars
Pullman year's results were adversely
which has been more laggard to
than the rest, came to life to builds, it also has branched affected by inventory adjust¬
ments and start-up costs. But
add a new note to the section. out into truck trailers and
The

ne»erve

announced by the 23rd of the month.

wider vista.

Distillers,

U'eueicu.

operation which will most likely be

doubtedly will show that the
present organization has a far

National

in the year. This increase in the Central Bank rate will
bring
in line with the other short-term rates and it
could be the
forerunner to an upping of the
prime bank rate. By taking action
at this time, the Federal Reserve Banks
probably will have
cleared the money market of
many of its uncertainties, ahead
of the Treasury new money
it

Borg merger haven't
available yet, but un¬

maintenance

move

from the

been

unexpected

raising the discount rate from 2Vi% to 3% caught the
money market
by surprise, even though higher interest rates
were being
predicted by some money market specialists for later

on gov¬

ernment contracts. Res

Governments

week

than three-

Thursday, March 12, 1959 "

By JOHN T. CHIPPENDALE, JR.

quarters of sales to around a

ing with their record peak operations.
week, the chagrin evident

this

Reporter

ab¬

and

sorption of George W. Borg
Jorp. late last year has re¬
Industrials

o m

electronics items,

its

tion to

field,

products ranging fr

auto clocks to fabrics in addi¬

AND YOU

diversified

its

;

be a

Edward Richmond

Tinker, New tion. He was instrumental in ap¬
nonYork financier and industrial ad¬
doldrums for. years and
pointing Joseph Schenck as presi¬
good news. The stock is to be callable preferred stock and visor, passed away March 1 at Bal dent of Fox Films and the Skouras
some
«of
the - better -'ones
split 3-for-1 late in April; a its high, $7 dividend require¬ Harbour, Fla., at the age of 80.
Brothers, Spyros and Charles, as
showed fat yields
running to
For some years Mr. Tinker was
ment.. The shares at recent
heads
of
Fox's
West
Coast
year ago it was split 2-for-l.
5V2% in United Merchants
associated
with
the
Chase Na¬ Theatres
chain.
own

low 68 to above 238 has gone
any new merger might
a
long way to discount the chance to eliminate the

presidency and later the chair¬
man
ship of Fox Film Corpora¬

Edward R. Tinker

Textiles have been in their

and

Manufacturers.

The

latter's fastest growing retail
chain, Robert Hall,.continues

prices have offered a return
comfortably above the 4%

Market

'y?<"••''

v'4

•

Amphenol-Borg is

item
to grow. Profit was in a down¬
in the electronics
lineup that
trend after 1955 but snapped
hasn't been given much of a
one

back for the first half of its
whirl and has been available
fiscal year to indicate that
company

the

has made

better; The

yield approaching 3V2%

turn for at

time when dividend-less

company

well diversified and

acquired

thq

is electronic

recently
opera¬

things,

around

this

were

high-flying act.
sold
at
yields of

1%,

so on

yardstick

the basis cf

Amphenol

has produced a new wall cov¬ the

behind-the-market

ering of promise to add

company

an¬

The

going

their

Others

plastic film

tion that, among other

into

issues

one

item.

of the

tional

line.-

An Electronic Behind the
:

mittee of the Bank and president

•••*'

'• '•.-

and

[The

Bank and

chairman

was

the

chairman

the

time

one

executive

com¬

Chase

expressed in this
curities
Corporation,' which
he
article do not necessarily at any
organized.
time coincide with those of the
After the first World War Mr.
"ChronicleThey are presented
Tinker achieved prominence as a
as those of the author only.]
views

financial

American

Form R. E. Bernhard Co.
BEVERLY

Hills, Calif.

—

offices

Drive.

securities
at

170

Partners

business
South
are

corporations.

from

numerous

Among

major projects in which he had

R. E. part

Bernhard & Company is conduct¬

ing

advisor

was

Armour

1927,

the reorganization
Company.
at the age of 49,

Jr.

and

DETROIT, Mich.
Martin

numerous

industrial

directorships.

hag

—

formed

J. Thomas

Martin

and

Company with offices in the Buhl

to
act as
dealers
in
Building
municipal bonds. Associated with
the firm are Kenneth K. Martin
and

George H. Hunt, Jr.

Blyth Adds to Staff

Beverly retired from the bank but retained

Robert

Company

Formed in Detroit

In
1931 he was recalled from
Markus
K.
Rindermann. Both were formerly semi-retirement
by
the
Chase
with Lloyd Arnold & Company.
Bank to accept temporarily the

Bernhard,

Martin &

Se¬

LOS

ANGELES, Calif.—A. G. T.
Hay has been added to fhe staff
of

Blyth

Sixth Street.

Co.,

Inc.,

215

West

Volume 189

Number 5828

The Commercial and Financial Chronicle

(1201)

AVAILABLE

NOW

CONTENTS

CHAIRMAN'S COMMENTS

page

'—Ralph J. Cordiner speaks to share owners.. 1:
SALES—totaled $4.1 billion.......

EARNINGS—$2.78

...

(

DIVIDENDS—60th consecutive year........ 6

1958 SALES-BUILDING PROGRAM
-resultsfrom

;

Operation Upturn.;......... 8i

NEW CONSUMER GOODS JL
j -full-color

photographs-.....10 ;;;

j
high!............12

RESEARCH AND DEVELOPMENT

-expenditures at

a new

; REPRESENTATIVE GROWTH BUSINESSES:;

ATOMIC POWER-new reactor orders... ..14
ELECTRONICS

—"growing room"; for transistors...
HIGH-VOLTAGE TRANSMISSION
power to

—more

. .

.15 ^

. .

America v,.

.....,. >.

■

COMMERCIAL JET ENGINES
'

—for the

new

jet liners.16

STEAM TURBINE-GENERATORS

world's largest...........»..... .i1..

COMPUTERS—for industry, a

16 ••

big potential. 17

LEXAN® PLASTICS-a new business....... 17 rv

HOME PRODUCTS-new

concepts........171

THE "SYSTEMS APPROACH"
-new

dimensions for electrical products.

.18

IMPROVEMENT IN MANUFACTURING AND

...20

LABORATORY FACILITIES .;.....
PRODUCT QUALITY AND SERVICE
;

—

emphasis on after-sale service

of home

products......... —...........20

EMPLOYEE RELATIONS
:

new

—

Savings and Security Program. . ..22

BUSINESS CLIMATE IMPROVEMENT
—to enable business to make

■

its full contribution
NUMBER OF SHARE OWNERS
-rises to

average

•••24 -

;

.24 '

of 395,493.'

1958 FINANCIAL SUMMARY
FINANCIAL STATEMENTS

....

...25

................

•

.28

10-YEAR SUMMARY...............'..•..•...32

;

DIRECTORS AND

OFFICERS.....i......i...33
* "7

For

progress,

nual

V""?

information about these

send for

your

free

copy

"V I ' T *

areas

of the An¬

Report; write to General Electric, Dept.

Progress Is Our Most Important Product

,AR-119-2, Schenectady, N. Y. If you own
General Electric shares held in the
a

broker,

trust

in the nominee

company,

regularly

our

name

bank

write to Dept. GC-12.

Schenectady, N. Y., and
-

name

owner

will mail

publications.

you

GENERAL

ELECTRIC

The Commercial and Financial Chronicle

(1200)

diversified

its

products

its

ranging

tion

i'he

By WALLACE STREETE

its

electronics

diversification

back

were

Our

ing with their record
week, the chagrin evident
the

over

latest

boost

:'fi

❖

the

Raj is

third its

and

ab¬

week

were

the extent

the

unexpected

inuve

ifeueictx

tne

in the year. This increase in the Central Bank rate will
bring
in line with the other short-term rates and it could be the
forerunner to an tipping of the prime bank rate.
By

on gov¬

taking action
probably will have
the money market of many of its uncertainties, ahead
of the Treasury new
money operation which will most likely be
announced by the 23rd of the month.
By pushing up the discount rate, the Federal Reserve Banks
indicate that they are still very much concerned with the inflation
problem and its effects upon the purchasing power of the dollar
this

time,

the

Federal

Reserve

Banks

cleared

well

the economy as a whole.

maintenance

■

brighter stars, with some of
the
steels
doing better at
times

to hum

the

mills continued

busily. The tire shares

also in good

were

demand at

times, although Goodyear was
somewhat

reactionary as
profit-taking moved in after
its good climb. U. S. Rubber,
which has been more laggard
than the rest, came to life to
add

note to the section.

a new

The

National

work

Distillers,

famed

with industrial chemicals in

quarters that the inflation fear is
the recent past.
are

Three -decide
small

enter

the the field this week

some

field. The

reason

prominent
known

if General

Motors and Ford work rather than from talk of
decide to do so, but indicated new
drug preparations. The
that it would not be the first latter was available at the
to jump into the picture,
•*

ere

considerable

was

•

skepticism around,

the
of the market generally,

state

what

with

steel

over

consumers

stocking »up in case there is a
midyear strike, and with auto
sales lagging. Aircrafts were
not in any

great demand and

forecasts that

Boeing's profit

this year will decline further,
after falling to $4.01 a share
last

from 1957's $5.28,
hardly likely to bolster
that particular issue.
Oils
were also a
depressed section
year

was

and

had

new

with

contend

doldrums for. years and

own
i

some

showed fat

5V2%

good news. The stock is to be
;split 3-for-l late in April; a
yields running to
year ago it was split 2-for-1.

the

better

United

ones

Merchants

and

Manufacturers.- The
latter's fastest growing retail

.chain, Robert Hall, continues
to grow. Profit was in a down¬

An Electronic Behind the

Market

trend after 1955 but
snapped hasn't been given much of a
back for the first half of its whirl and has
been available
fiscal year to indicate that the at a

yield approaching 3Vz%

company

has made

turn for at

ment.

The

non-

recent

comfortably

the

[The

above

better.- The

company

return

4%
1

issues

ering of promise to add

an¬

The

company

one

of the

extend the

well

there

not

are

rising bond

offering of long-term Government
Evidently, it is still the desire of the Treasury to
maturity of the debt and at the same time be able to

deposits and in this

way

the forces of inflation would be

lessoned.
Even though the Treasury may not resort to the flotation of a
long-term issue to finance its new money needs and for refunding
purposes in the near future there is always the threat that this
will take place and, accordingly, it is the opinion in some quarters
that this will tend to put a ceiling on the amount of .rise price-

wise

that

known

the

most

distant

will

Governments

that the Treasury will tailor

have.

well

its issues to meet the pre¬

vailing money market conditions and, if the capital market is the
one
which offers the greater advantage to them as time goes
along, it should not be unexpected if a long-term security were
used for what ever purpose the Government may choose.

Views
On the other

qf Short-Term Adherents

hand,\there

are

beliefs around that the Treasury

will confine its operations during the coming year entirely to the
short- and-intermediate maturities, with the longest issues limited
to be not

more than five years in length.
It is evident that there is
appetite for the most liquid Government obligations and, even
in face of the higher discount rate and increased offerings of the
Treasury bills, the short-term market is acting well. If there
an

should be

lessening in the liquidity preference idea it might
Treasury could get away with a short note maturity
operations. As against this, there is the inflation
psychology which generally carries with it, the uncertainty that
be that

for

some

the

of its

some

demands

short-term

liquid

issues for salability and the

hedge

they provide.

presidency and later The chair¬
man
ship of Fox Film Corpora¬

Edward R. Tinker
Edward Richmond

Tinker, New

York financier and industrial ad¬

For

some

chairman

Mr. Tinker

years

with

tional Bank
of

and

the
was

the

advisor

Theatres

numerous

retired from the bank but retained

industrial directorships.
1931 he was recalled from

numerous

the

Chase

temporarily

the

presi¬

dent of Fox Films and the Skouras

heads

com¬

instrumental in ap¬

Brothers, Spyros and "Charles, as

was

American corporations. Among
major projects in which he had a
part was the reorganization of
Armour & Company.
|
In 1927, at the age of 49, he

was

Fox's

West

Coast

chain.
■

time

one

executive

tion. He

pointing Joseph Schenck

Na¬

Chase
at

mittee of the Bank and president
and chairman of the Chase Se¬

formerly semi-retirement
Bank to accept
with Lloyd Arnold & Company.
were

And it is

have these issues go into the hands of the ultimate investor.
By
this method there would not be an increase in either the
money

financial

Rindermann. Both

obligations.

expressed in this
curities
Corporation, - which
he
article do not necessarily at any
organized;
time coincide with those of the
After the first World War Mr.
"ChronicleThey are presented
Tinker achieved prominence as a
as those of the author only.]

were

so.

that prices in the capital market had tended to
due mainly to smaller corporate bond offerings and

views

time when dividend-less

is electronic

new money raising ventures, since
few money market specialists who contend that
market will bring with it an

associated

prices have offered

year

supply

Form R. E. Bemhard Co.
going
BEVERLY Hills, Calif. — R. E.
well diversified and recently into their high-flying a c t. Bernhard &
Company is conduct¬
Others
sold
at
yields of ing a securities business from
acquired a plastic film opera¬
at
170
South
around 1 %, so on the basis cf offices
Beverly
tion that, among other things,
this* yardstick Amphenol is Drive. Partners are Robert E.
has produced a new wall cov¬ the behind-the-market item. Bernhard, Jr. and Markus K.
the

was

preferred: stock and visor, passed away March 1 at Bal
high, $7 dividend require¬ Harbour, Fla., at the age of 80.

line.

Amphenol-Borg is one item
in the electronics lineup that

fact

callable
its

last

too much agreement as to the future policy of the
Treasury in its

mercial credit. This company

been in the

inflationary spiral is not generally conducive to

refunding and

recently expanded into fi¬
nancing of boats, a booming
equivalent of 20 in 1957, be¬ field, and should benefit from
low 39 at the low last year the higher car sales impor¬
Anti-trust eying of
and this year has sold above tantly.
Ford's plan has also added a
150.
#
;J:
#
new doubt whether the plan
will go through. The finance
Another skyrocket occa¬
companies were able to show
sionally is Zenith Radio but
here the earnings record is good profit stability last year
when car sales were lower so
outstanding and last year
all projections of this year's
when other companies v/ere
results point to improvement.
having a rough time Zenith
jumped its sales 22 %, profits
Food items have been some¬
48% and even its shipments
of
television
sets
were
up what neglected lately al¬
1*5*% while the industry sales though National Biscuit is one
were
reaching their lowest service's stock of the month
point in nine years. For the selection, largely in the hope
first quarter of this year sales that its attempts to diversify

low 68 to above 238 has gone any new merger might
a
long way to discount the chance to eliminate the

the belief that there will not be
any flotations of long-term Gov¬
ernment bonds for either
refunding or new money raising purposes
for the foreseeable future.
However, there does not appear to be

import quotas ran 25%. ahead of last year, outside the cookie and cracker
were
pared 15%.
although the stock in advanc¬ field in which it is predomi¬
ing from last year's low of be¬ nant. An incidental benefit to
An Awakening Textile,Textiles have been in their

was

Long Treasury Issue Strong Possibility

note when

it has

that

The

only defi¬ definitely lusty moves both
shares
were
well
deflated
nite statement from the top
ways. Thiokol Chemical was
from their 1958-59 highs and
makers was Chrysler's an¬ also a wide
moving item but
offer above-average yields
nouncement that it was in here
the
motivation
camq
position to get vinto the; field fromits activities in rocket running nearly to 5% in Com¬
car

rising bond prices.

finance

that

strong

the inflation psychology
are those in

Also, there have not been too many instances in which there
a rising bond market and a
rising stock market at the
same
time, especially since the inflation psychology has been as

that Ford's

the

has been

plans to
reenter
car
financing will
pose new competition for the
financing companies are part
of

quite

the financial district who point out that the
sharp uptrend of
prices in the equity market, as well as the recent increase in the
Central Bank rate, is in no small measure to the fear of the
future purchasing power of the monetary
unit, and they see no
let-up in this concern.

Financing Competition

Fears

not

However, the opinions

subject to considerable disagreement since there

improve

Auto

''^vt

The sharply reduced volume of
corporate bond offerings,
along with the absence of a new long-term Treasury issue, to¬
gether with a turndown in housing starts, had produced a recovery
in bond prices.
To this might be added also the belief in some

forged to, a new engineering work to minimize
definite upswing, the budding
peak for 1958-59 but without its dependence on the varying
chemical operation is a candi¬
fortunes of the carriers.
yet challenging its 1956 peak.
date for a good upswing this
Motors Ragged
Drugs Stirring
year.
Motors
were
generally
Drugs stirred occasionally
ragged, American Motors with tales of new wonder
wavering uncertainty over products lifting first one, then
the prospects of greatly inten¬
lanother, into the limelight
sified competition if the Big with Vick rather
dominating

'v:'

;

Inflation Psychology Persists

being done by the car¬
riers this year is more evi¬ for its beverage line, has been
dent.
Yields in this section making strides in the chem¬
run
to more than 6! 2 %
in ical field that, for the first
Pullman despite the fact that time, nudged past liquor sales.
the company has been diversi¬ For all of last year the chemi¬
cal activities only accounted
fying into non-rail lines and
for slightly more than a third
had a dividend record
un¬
broken since 1867. In addition of profits, h o w e v e r. Last
to
the
rail
cars
Pullman year's results were adversely
affected by inventory adjust¬
builds, it also has branched
out
into
truck trailers and ments and start-up costs. But

issue

last

xveoerve

raising the discount rate from 2k>% to 3% caught the
by surprise, even though higher interest rates
being predicted by some money market specialists for later'
market

dependence

quiet and re¬
by the Federal strained for the most with the from the Borg merger haven't
been available yet, but un¬
Reserve proving only a one- car
loading reports showing a
day deterrent.
tendency to level off instead doubtedly will show that the
#
»:<
of
improving steadily. The present organization has a far
Some of the drugs, elec¬ railroad supply companies wider vista.
tronics and Thiokol in the also were neglected until the
Expanding
fuel section

Governments

money

discount rate

rocket

Thursday, March 12, 1959

By JOHN" T. CHIPPENDALE, JR.
The

ernment contracts. Results

were

Reporter

items,

toy¬ other line to United's varied duced from more than threequarters of sales to around a
peak operations.

this

field,

sorption of George W. Borg
Jorp. late last year has re¬
Industrials

from

auto clocks to fabrics in addi¬

THE MARKET... AND YOU

Martin ft Company
Formed in Detroit
DETROIT, Mich.
Martin

has

—

formed

J. Thomas

Martin

and

Company with offices in the Buhl

Building
to
act
as
dealers in
municipal bonds. Associated with
the
and

firm

are

Kenneth

Martin

George H. Hunt, Jr.

Blyth Adds to Staff
LOS

ANGELES, Calif.—A. G. T.
Hay has been added to 4he staff
of Blyth & Co., Inc., 215 West
Sixth Street.

Volume

189

Number 5828

NOW

Commercial and Financial Chronicle
The

(1201)

AVAILABLE

CONTENTS

CHAIRMAN'S COMMENTS

PAGE

-Ralph J. Cordiner speaks to share

owners..

SALES-totaled$4.1 billion....>♦, 3
EARNINGS-$2.78

5DIVIDENDS—60th consecutive year.,....6
1958 SALES-BUILDING PROGRAM
results from

—

Operation Upturn.

NEW CONSUMER GOODS
-full-color

/... 8

photographs.

RESEARCH AND DEVELOPMENT

-expenditures at

high!

a new

REPRESENTATIVE GROWTH

.12

BUSINESSES:;

ATOMIC POWER-new reactor orders.... .14

ELECTRONICS

-"growing room" for transistors...

.15

HIGH-VOLTAGE TRANSMISSION :
-more

America..............16

power to

■v; COMMERCIAL JET ENGINES

-for the

new

jet liners............

STEAM TURBINE-GENERATORS

...

..16 *:

>V-

-world's largest.....

......16

COMPUTERS-for

industry,

LEXAN® PLASTICS-a

new

big potential. 17

business.

...

HOME PRODUCTS-new concepts.

.17

17:;

THE "SYSTEMS APPROACH"
-new

dimensions for electrical products. .18

IMPROVEMENT IN MANUFACTURING AND
LABORATORY FACILITIES

.....

......

...20

PRODUCT QUALITY AND SERVICE
i

—

emphasis on after-sale service

of home

products...................-.... .20

EMPLOYEE RELATIONS
-new

Savings and Security Program....., .22

IMPROVEMENT'

BUSINESS CLIMATE

—to enable business to

make

—24

its full contribution.

NUMBER OF SHARE OWNERS'
—rises to

•

of 395,493.......... .24

an average

1958 FINANCIAL SUMMARY.............. 25

FINANCIAL STATEMENTS

.28

...............

............32

10-YEAR SUMMARY.......

DIRECTORS AND OFFICERS........ •.......33
•»

• •

For

progress,

nual

y i

information about these

send for

your

free

copy

V"T

areas

of the An¬

Report; write to General Electric, Dept.

J"Progress

Most Important Product
Is
Our

AR-119-2, Schenectady, N. Y. If you own
General Electric shares held in the
a

broker,

trust

in the nominee

company,

our

name

bank

write to Dept. GC-12.

Schenectady, N. Y., and

regularly

name

owner

will mail

publications.

you

GENERAL

ELECTRIC

The Commercial and Financial Chronicle

(1202;

tutions and their

competitors have posits was the largest on record.
interests and goals. We Commercial
banking,
therefore,
concerned, for instance, would hardly seem to be charac¬
with
the
inflationary pressures terized by ill-health, either from
that intermittently
threaten the the standpoint of their capital
economic progress of our nation,
position or their ability to attract
and we are all seeking ways to
savings.
maintain the integrity of the dol¬
Taxation. The second question
lar.
Moreover, each of the main at issue in current financial dis¬
types of financial institutions de¬ cussion is the broad one of taxa¬
pends on the vitality and sound¬ tion. It is a question that merits

Commercial Banks Err
In

common

Attacking Savings Banks
By GROVER W. ENSLEY*
Executive Vice-President

National Association of Mutual

Savings Banks, N. Y. City

Economic Staff

Former Executive Director of Congressional Joint

ness

intemperate

Ill-considered

of the others.

and

banks* spokesman trenchantly arraigns economic
fallacies and unsupportable arguments said to be levelled
against rautuals by commercial banks. Dr. Ensley favors tax
liberalization for commercial banks, but he: (1) charges
Savings

attacks

thoughtful and unbiased con¬
sideration,
not
only
of
those
directly involved, but also of all
citizens concerned with the sound

the

any

of mutual thrift institution
much harm, not only to
but to
the financial community at large.
type

can

entire thrift industry,

the

mutuals is unwarranted and would cost more
in savings-loss than gain in tax-revenue;
(2) rebuts new
monetary theory that would impose similar financial controls
such as reserves-—on both institutions; (3) denies competition
has affected accusant's capital position or ability to attract
savings; (4) finds misleading the references to "12% bad debt
reserve"; and (5) quotes Reserve Governor there is no
obstruction to Federal Reserve monetary policy. The economist

proposed tax

all

are

growth of our national economy.
It calls for discussion on the high

Thursday, March 12, 1959

tion is that mutual savings banks
and

savings and loan associations
little or no Federal income

pay

taxes

because

"tax

change,

Proposals; j for
are often^ill-

therefore,

advised because
stances

the real

not

are

plain facts

so-called

some

preference".

circum¬
The

understood.

that these mutual
institutions are subject to

thrift

are

the regular corporate income tax

have

and

been

since

1951.

other

taxpayers, savings banks
and savings and loan associations
are permitted to
deduct business
expenses and interest. They are
allowed to deduct additions to bad

commercial plane of economic and political debt reserves until reserves,1 to¬
friends
are
"Johnny- statesmanship, not on the low gether with previously accumu¬
come-lately's" to the thrift busi¬
plane of misleading advertising lated surplus and undivided prof¬
ness, having belatedly recognized
its, aggregate 12% of deposits) ; v;
slogans such as "tax equality."
the
importance
of
thrift,
the
It is misleading, furthermore, to
In
my
view, the correct ap¬
growing strength of the thrift in¬
refer to a "12% bad debt resefve";
proach to this matter is reflected
dustry, and the attractive oppor¬
the
tax-free
bad
debt
reserve
in the statement of a Congres¬
tunities for growth it affords to
Subcommittee
on
Fiscal allowed is only the difference;be¬
institutions providing thrift serv¬ sional
tween surplus, undivided profits
ices. Further, so long as savings Policy, headed by the Honorable
avers
these attacks do not solve country's basic economic
Wilbur D. Mills, now chairman of and reserves previously accumu¬
remain a relatively inexpensive
lated and 12% of deposits. Insti¬
problems, and he prescribes joint attack on inflationary bases.
and profitable source of loanable the tax-originating House Way*
tutions
which
have
previously
and Means Committee.
funds, competition is likely to re¬
EDITOR'S NOTE: Owing to an prepared to support constructive
accumulated surplus and reserves
main
"The basic problem
strong.
Those who have
(of infla¬
proposals for an improved finan¬
aggregating 12% of deposits are
error, a portion of Dr. Ensley's
been
dedicated
to
thrift
for tion) is an inadequate level of sav¬
cial system.
allowed no deduction for statutory
talk did not appear in the text
nearly a century and a half have ings out of current income. An
bad debt reserve additions. Thus,
We are
cooperating with the nothing to fear from new, hard,
ever-increasing volume of real
that appeared in our March 5
unless a savings bank distributes
newly established CED Commis¬ honest competition in the market
savings is f needed to meet thcall of its earnings to the savers, in
issue, page 11. The address as sion on Money and Credit in their
place. It is in the tradition of the economy's requirements for re¬
whose hands they are taxed as in¬
delivered is reproduced here- long-range study of financial in¬ free
private enterprise economy. placement of plant and equipment
stitutions and monetary and fiscal
terest received, it must either:' (a)
Let the individual choose his out¬ under
with.
inflated
prices
and foi
policies.
Some 50 years earlier let for savings from among the
pay the regular corporate income
growth based upon full exploita¬
tax up to 52% on the portion re¬
The
American
economy
has the investigations of another Mon¬ several types available, but let tion
of
rapid
technological
etary Commission, sponsored by him do it without being confused
undergone fundamental changes
advances.
Fiscal
and
monetary tained, or (b) if it has surplus
in the past three decades and so the U. S. Congress rather than a by spurious argument and attack
and reserves of less than 12%,
policies should be directed towards
has our understanding of basic private organization, were basic by one type of institution on the
encouraging
a
higher
level oi place the net earnings in a reserve
the

Erocesses. We
emerged

findings of the pres¬
— together
with
those
of
other
groups
and in¬
dividuals—will result in equally
important financial changes, no
one can tell.
In any event, we can

depression of
the '30s and

World War II
of

era

prosperity and
overall
nomic

Grover

knaiey

day, in contrast to earlier periods,
who would deny that thrift and a
healthy thrift industry are essen¬
tial to meet the capital needs of
our
expanding economy.
Their
importance to a stable price level
is equally clear. The President, in
his recent State of the Union Mes¬

this thought well

"Thrift is one of the character¬

had

unaware

of its

considerably less than $1 bil¬

lion invested in

mortgages outside
they op¬
erate. Of this amount only about
$30 million was invested in Cali¬
of the 17 states in which

fornia mortgages. The volume of
these
has
investments
grown

markedly in the past seven years
or so
to over $4V2 billion in all
non-savings bank states, and to
well over $1 billion in California
alone.
these

A considerable amount

California

mortgages are
being serviced by the savings and
loan industry.
It is important to
note, incidentally, that because
our out-of-state
mortgage invest¬

great.

Why should we ignore it
We must avoid any contri¬
bution to inflationary processes,

loans,

now?

tions

which oould disrupt sound growth
in our economy."

conventional

this

are

1951, for example, savings banks

ments

made

Role

increasing national significance in
capital markets. As recently as

nation

has

Changed

industry, the role
of the mutual savings bank has
changed
so
rapidly
in
recent
years that there are still many

are

limited to FHA and VA

savings
have

concentrate

area

loan

and

been

associa¬

enabled

their

further

attention

mortgage
they

which

lending,
are

the

recognized leaders.
The

New7

Interest

Thrift

While

welcome

the

objec¬

Institutions

tive study of scholars and of im¬

Partly because of the re-emer¬
gence of monetary policy as an

partial agencies, we recognize the
dangers
implicit
in
misguided

effective

academic theories, as well as in
partisan positions taken by some
competitors under the guise of
objectivity. Each must be coun¬

stabilization

tool,

and

partly because of the rapid post¬
war
growth of financial institu¬
tions, our nation's financial struc¬
ture
is undergoing critical re¬
examination.
It
is
being con¬
ducted on the campus, in private
research
organizations, and by
government agencies. From this
process
of intellectual
ferment
new

facts

and

theories

are

al¬

ready being developed, and ul¬
timately new financial legisla¬
tion may also emerge.
We in
savings banking welcome—as I
hope the entire thrift industry
does—this renewed interest in,
and searching study of, the role
of

financial

institutions

•An address by

and

are

Dr. Ensley before tbe
Management Conference of the California
Savings and Loan League, Santa Bar¬
bara, Calif., Feb. 16, 1959,

tered

by
reasoned
argument
the basic soundness of

showing

the mutual thrift industry and its
importance to the achievement of

sustained economic growth.

old

Answers Commercial
our

friends

Banks

commercial

banking, may I say that it would
be unfortunate in the extreme to
seek

competitive

vitally needed housing and indus¬
trial

the American

expansion.

would

also,

So,

the reduction in real savings com¬

been

serve

the

to! finance

available

ings

is at

pound the Treasury's difficulty
financing the Federal debt in

serving
the
same
worthy objectives in fundamen¬
tally the same way for close to 150
years.
Services have been mod¬
ernized and techniques improved

in
a

non-inflationary manner. These
results
of
unwise tax

adverse

of
multiplier
well lead to savings
the economy substan¬

because

changes,

saver more

effects,

may

effectively, but the goal of en¬ losses to
couraging thrift remains the same. tially in excess of any immediate
If this goal is un-American, then
increase in Federal tax receipts.
>

is apple pie.

Within the framework of these

The

contention, moreover, that
ownership of financial, en¬
terprise provides an unfair com¬
petitive
advantage
over: stocktype
institutions and is so ^;to
speak, driving commercial banks
to the wall also is hardly borne
out by the facts. To be sure, mu¬

broad fiscal

mutual

financial

tual

had

institutions

a spe¬

obtain

new

capi¬

tal by stock flotations and thus
provide the capital base for future
growth.

Moreover, even in the area of
thrift, commercial banks still hold
much

funds

time

and

savings

loan

associations

mutual

ac¬

savings and
sav¬

ings

banks. The effectiveness of
the vigorous pursuit
of savings
by commercial banks in recent
years is shown by the fact that
they increased their share of the
total flow of individual's savings
over

one-sixth

1956

well

one-third in 1957 and to two-

to the total benefit of all. In
many

fifths

broad

1958. The

commercial

1958

bank

increase

savings de¬

earnings

for

be»re¬
other-> than

may

purposes

mortgages and
payment
of
taxes,
of ' the
irrespective
amount or percentage of surplus
and reserves held by the b&nk.
Even funds placed in the loss re¬

meeting losses

other loans except after

serves

the

taxable to the bank at

are

regular

full

corporate

rates

if they are distributed or removed
from that protective classification.
The

mutual
savings
savings and loan asso¬
ciations have not paid much in
taxes in recent years, therefore, is
reason

banks and

that there has been
come

little net in¬

left after the above author¬

ized deductions.

•

Clearly,
any
hasty,
ill-con¬
sidered imposition of additional
taxes

mutual thrift institutions

would

short-sighted, indeed.
question needs to be
studied
carefully
within t the
framework of broad proposals for
tax reform designed to remove in¬
equities and improve incentives.
The

whole

respect, President Eisen?
spoke of the timings and

nature

would
our

have

the

soundness of

financial structure. It has long

recognized that in framing a

been

income of
ability of

program for taxing the
thrift institutions, the

thbse

institutions

accumulate

this

needed

sage by

was

now

than

when the mutual thrift in¬

stitutions
the

less

were

made

income

Federal

subject

tax

for

to
the

first time.

sions governing commercial banks

be desirable.

nitive
mutual

tax

However, pu¬
measures,
applied +o

thrift

institutions

would

weaken these institutions and add
to the inflationary dangers in the
economy.

There would be

eral lose of confidence

of depositors and

the strength

a gen¬
the part

shareholders in

of all thrift institu¬

tions, including commercial banks,

fundamental mis¬
conception in this whole tax ques¬

}

foreseeable

future

when needed tax reforms

can

proper
remove

time, our tax structure, to
inequities and to enhance

incentives

for
all Americans to
work, to save, and to invest. :Such

recommendations will be made
soon

fiscal condition: per*-

our

mits.

These

brightened

prospects
will
be
if
1960 : expenditures

not

the levels

exceed

recom¬

-■

£ "

Monetary policy considerations.
The third question raised
lately,
mainly by academic theoreticians,
is

whether

the

obstruct

thrift

institutions

operation

mone¬

tary policy and

Liberalization of the tax provi¬

may

accomplished. In this hope, I am
requesting : the Secretary of.' the
Treasury to prepare appropriate
proposals
for
revising,
at:: the

mended."

mes¬

look forward to

can

the

for

thrift accounts is

reforms

;; Y'VY

saying:

"...
time

adequate reserves and capital
funds to margin future growth of

tax

his recent State of the Union

considerations in mind. The need

larger absolute amount of

counts than do either

tained

hower

been offered

absorption of losses from
No

•

prices to well above book values.
Favorable opportunities have thus

loans.

tance is the effect increased taxes

have

spectacular

considerations,

the

for

cific issue of'fundamental impor¬

growth since
sufficient capital to protect de¬
the end of World War II, 'with
positors and shareholders must be
savings deposits at mutuaT sav¬
consideration. Unlike
ings banks, and share accounts at ,(a ; prime
commercialbanks, mutual thrift
savings and loan associations and
institutions cannot
raise capital
credit unions expanding by two
funds through the sale of stock,
and a half times. During this pe¬
and therefore must rely on the
riod,
however, the commercial
banking system has also been accumulation of capital from re¬
strengthened. Earnings have been gained earnings. The present for¬
good as reflected in dividends mula, under which mutual thrift
institutions have been taxed since
paid to stockholders and in the
marked
advance
in
bank stock 1951, was devised with these basic

each

mutual thrift insti¬

alien

itself and

and

the heart of the democratic proc¬
ess.
Mutual
thrift
institutions
have

from

areas,

the nation

advantage
by
attacks designed to weaken, if not
destroy, the mutual thrift system.
There is ample room in our econ¬
omy for all of our various types
of private financial institutions—

performing unique functions

endeavor

Mutual

answer.

ability to promote savings
provide adequate reserves
for
future
growth.
The result
would be a reduction in real sav¬

their

private enterprise economy
hardly be dignified by an

need

light of

Any ill-con¬
ceived increase in taxes imposed
on thrift institutions would hinder
these considerations.

Some of the attacks
is

mutual thrift

in the

resolved

must

to the effect that the mutual form

organization

institutions and commercial banks

trols.

Mutuality.

tax status

The

controversy,
there
emerged three main
questions, relating to mutuality
itself, taxation, and monetary con¬

own

pressure."

dis¬

and

business

our

cross-current of

inflationary

present conditions of

to have

observers who

theory of economic stagnation has
given way to recognition of dy¬
namic economic growth. Accom¬
panying these basic changes in
economic development and think¬
ing has come a new and broader
appreciation of the vital role of
thrift and of savings institutions.
There are few thinking men to¬

that

cussion

seem

anceofthe

istics

of the Com¬

the

From

Significantly

have been

sage, expressed
When he said:

course

voluntary real savings under the

The Main Questions at Issue

mission's study.

being that
could hardly

earlier years.
Wide accept-

that the role of thrift in¬

sure

amined in the

well-

foreseen

other.

stitutions will be thoroughly ex¬

eco¬

our

System.

Commission

ent

from the great

Reserve

Whether the

ave

into

Federal

establishment

eventual

the

economic

Many
banking

Moreover,

if so, is there a
impose new financial con¬
on
these institutions. The

need to

trols

theoretical framework
underlying
this question
is too comolex to
detail here, but in brief
run

seems

follows:

The commercial
banking system
is admittedly unique in its ability
to
create
check-book
money

through a process of multiple ex¬
pansion based on fractional cash
reserves.

However,

the

deposits

and share-accounts of thrift insti¬

tutions,

well

the policy

re-

Volume

189

Number

The

5828

Commercial and Financial Chronicle

(1203)

%
life insurance companies,
regarded by many individuals

serves of

■wngure

iU&s
jw

substitutes

for

commercial

bank checking accounts.

dress

the

by Governor A. L. Mills of
Federal Reserve Board: ;' ?

the

*.t

tion

new

system

continue,

theory

tions

ques¬
Federal " Reserve

the

advocates

financial

willingness and ability
of
Savings banks and other institu¬

"Altogether, there is little

Further-

this

but

that

more,

the

'monetary

policy

foundly influences the investment
policies of mutual savings banks,,
5 st crease the
preference of individ- savings and loan
associations, and
pt uals for these so-called - "near insurance companies, and that in¬
^ money" assets over commercial fluence
is
registered ; directly^/1/bank checking accounts, and thus";
through^ changes in the Federal
&A help undermine monetary policy.
Reserve Bank discount rate and
%ncM For example, the theory goes
indirectly through a derivative
on,
during periods when infla- influence on their activities that
awtionary pressures are strong and stems from the effects, that mori-'
-

the

Federal

Reserve

pursuing
>{?ia policy of credit restraint, thrift
institutions compete more aggres«;tc

sively for savings in order to lend
at high interest rates. As a result,

some

individuals

shift

from

induced

are

commercial

bank

•

~3dcounts and shares,

ac-

life insurance

Changes

objectives

ings

•

eral

Reserve

discount

rates

and;

market operations, elicit a
quick and powerful response in

ernment

hand

♦oink the

securities

mortgages

rate- bonds

arid/ thus

the

private

certain

institutions

flaws.

attract

sav¬

the

and

dividuals to
account

basic

recognize that, in the
both the eagerness of

willingness of in¬
reduce their checking

balances in favor of

insurance

policies

other1

These
the

proposed
controls, and
theories on which they are

based, also raise broad questions
with respect to the role of mone¬
tary policy in a free enterprise so¬
ciety. One of the chief advantages
of

monetary policy, aside from its
effectiveness, is the impersonal
of its influence, and the

so-

large

of freedom of choice it

area

The
monies," are rela-- leaves to private initiative.
Certainly, the broadening of controls to cover
advocates of controls advance no; mutual thrift institutions, would
evidence
that
the
behavior
of go far beyond the limits of tra¬
called

"near

constant.

institutions
conforms to

savers

the

money, should be singled out for
special Federal controls.

life* nature

and

individual

their theories.

tions, which

hand,

Volume

the

Moreover, they fail to indicate
convincingly why thrift institu¬
are only one among

one

corpo¬

other

the

affect

and

has

thrift

actions, exert an
influence
on
savings

and

into

economy.

tively

Federal Reserve

to shift funds between U. S. Gov-.

.Indeed, "Stop" and "Go" sig-',
nals, produced by changes in Fed^

fails

thrift

monetary
policy.- Moreover, changes in in¬
terest rates, produced by a com¬
bination of market influences and-

important

the

short-run,

construction and corporate capital
investment in ways that conform
the

controls

volume of new commitments, in
turn, affect the flow of funds into

with

flowing

In addition, the line of reason¬
ing of the advocates of financial

the

etary policy first has on the cred-i bank investment policies.
Such
it-creating activities of the com¬ changes bear
upon the willingness
mercial banks."
/ ^ '".j'

open

checking accounts to savings

•r

make advance commit¬
mortgages and corpo¬

for

securities.

rate

activities of thrift institutions in-

ments

■* pro¬

funds

sectors

many

factors that

effect

the

have

may

velocity

ditional

monetary

other

and

mercial bank lenders

different

numerous

institutions.

Continued

of-

able to

their lending at a time
the
Federal
Reserve
is

i/iiiWhen

actively seeking to restrain credit
Expansion.
1

;?9i0dTo express this
<■&

somewhat

different

Hi asserted

that

(ft) Reserve

may

frustrated

terms,

while

the

Federal

in limiting

succeed

Sflbihe supply of
01

doctrine in

new

its action is
increase in the

money,

•n,'turnover of money resulting from
the ability of thrift institutions to
"IT. mobilize and put to work the idle
a 10

balances

money

'j'To

remedy

individuals.

the

situation

re-

Uwvealed by this theoretical analysis,

vmthe

argument

i; so. specific

policy

\uit towards

thrift

'til adopted.

ANNUAL REPORT SUMMARY

restraint

institutions

maintains

that

proposes

that

Year 1957

cash

:MTeserve
01

requirements similar to
those now applied to commercial
banks, should be imposed on mu-

savings banks, savings and
bo loan associations, life insurance

requirements

reserve

....

should

Interest and Debt
7\

these
proposed
trols would go far; beyond

wu
-

•rm

i- >*

fractional

cash

regulated

for

riomic

reserves

the

benefit.

has

must

general

ance

24,667,236

24,183,389

12,729,321

12,500,612

5,530,000

4,830,000

6,407,915

6,852,777

...

Net Income for Common Stock

360,334

336,584

....

6,047,581

6,516,193

Average number of shares outstanding

Earned per

$5.17

$5.21

....

$2.30

$2.40

1,169,644

1,250,000

recent

cussions,

the

possess
<-

via

power

Volume

dis-

Acquired During the Year

Instalment receivables

not

credit-creating

commercial

and hence, are

LOANS AND DISCOUNTS

non-commercial

same

been

theoretical

that

Dividends declared per share

appear-

bank financial institutions

$ 58,425,418

eco-

also

widely accepted, until the

r;
;

•

Preferred Dividend Requirements

of payment on the basis of

means

$ 56,326,384

.■<

Expense

Wholesale and other receivables

banks

not properly sub-

•

$387,858,966

Outstanding at End of Year
Instalment receivables

ilifuioanable funds

on the
voluntary
decisions of individuals. It

Total

outstanding

.-.

$371,763,029

....

Wholesale and other receivables

is true, of course, that savings and
sor loan associations have a somewhat
<>;J

170,300,147

$584,050,687*

$336,570,378

:.)d

ject to monetary controls. Unlike
commercial banks, savings insti$rtt tutions are dependent for their

$413,750,540

164,480,332

$552,339,298

Total volume

•id- savings

30,024,766

33,709,147

$366,595,144

$405,472,176

oi
i

greater leeway than mutual savfinings banks in that they are able
to supplement their savings ini

iiflow to

AUTOMOBILE, FIRE, AND CASUALTY INSURANCE

limited extent by bor'

•:U;

rowing

t.'j

Loan

from
Bank

function

,'S

...

•
•

con-

have

)•

Net Income

what
always thought
to
be the
legitimate sphere of
monetary policy. It has long been
recognized that the unique power
possessed
by
the
commercial
banking system to expand the
most

ioi

Clearly,

;

.•

U.S. and Canadian Income Taxes

Variable at the discretion of some
b|, new proposed Federal agency.
?!

Operating Income (before interest)

"hi

=-ri

/ ■
''•*•-.'

Total Income

tual

J<o: companies, and other credit in^ stitutions,
and, that these cash

Year 1958

EARNINGS

the

Federal

System.

of all

Home

The

thrift

Net Premiums Written

8,703,297

9,658,694

basic

institutions,

however, is to collect savings and
invest these savings to

/.lend or
\ finance

the

long-term

capital

Our Subsidiaries include i

needs

^.^and

governments

mentally
o,

'.,

that
new

business,

home
—

owners

of commercial banks. The
doctrine obscures rather than

clarifies the basic differences be■,

rj-;

tween

commercial

banks

and

thrift institutions.

of complete

policy are in regulating the activ-nities of all financial institutions.
tt>;, The pervasive effects of moneiT.L.tary policy have not escaped the
7jjj

Pacific Fidelity Life Insurance

Merchants Bank of Detroit

Copy

Marathon Insurance

Pacific Industrial Loans

Pacific Finance

Motors Acceptance

Corporation

Company

Corporation of Canada Ltd.

Pacific Finance Credit Limited (Canada)

First Credit

Corporation

Pacific Finance

Acceptance Company Limited (Canada)

Olympic Insurance Company

request

PACIFIC FINANCE CORPORATION

attention

our

central

banking

1
-

authorities, however,
T

by this statement in

evidenced
recent ad¬

■

Annual Report
available

Implicit in the proposal is a
lack of recognition of how effective existing tools of
monetary

0?.?-;
-

Pacific Finance Loans

funda-

different function from

Executive Offices: 621 South Hope Street, Los

Angeles 17, California

New York Financial Office: 15 Broad Street, New

York 5, New York

types

Rather than

increase

ri,

and

lending and investment policies

non-com-

are

policy,

would get into the area of control

itupolicies, and other so-called "near
^•monies". By this process, thrift
1! institutions

mere

page

Chronicle

The Commercial and Financial

Thursday, March 12, 1959

(1204)

Continued from page

for

community

financial

the

Where Commercial Banks En

economic growth and

policy, the

controls

financial

con¬

major and unwarranted
new
intervention by government
into the financial system.
stitute

Basic

The

Problem and Its Roots

debt

Treasury

Reasonable
finance

management

op¬
Reserve

Federal

with

erations

News About Banks

monetary and credit actions is by
now a well accepted principle.
It
is not as well accepted, at least

practice, however, that there
other Federal credit programs
which need to be coordinated.
in

aware

are

basic

problem and the
facing this nation, it
seem
clear
to
all,
is

The

should
whether

achieve

can

satis¬

factory rate of economic growth
without
surrendering
to
the
forces of inflation.

That

have

not
been
entirely successful in
meeting this problem so far, and

that the

reasons

lor our failure go

the

public at large, and to millions
particular,

well beyond any deficiencies in
the structure of our financial in¬

stitutions, should be equally clear.
Certainly, proposals to change our
financial machinery through in¬
creased monetary regulation
or
punitive taxation of thrift institu¬
tions— let

alone

abolish

the

mutual
form
of
organization —
hardly provide the answer.
In large part the problem stems
from a resignation to the inevi¬
tability of inflation—or a failure
to recognize its threat—precipi¬
tating action on the part of busi¬

and consumers, and
some
Federal legislators, which
results in the building of inflation
deeper into our economic system.
At the very outset, therefore, a
labor,

ness,

broad program of grass roots edu¬

cation is essential to drive home
to the American

people, first that

inflation strikes at the very heart
of
our
economic
and
personal

freedoms,
monetary
are

and
and

second

fiscal

that our
authorities

determined and able to

bat

this

economic

com¬

scourge

all

costs.

all

times,

and, hence, are seeking to create
climate in which all types of

re¬

gardless of where we are in the
business
cycle.
Such
housing
credit policy, pursued with little
or
no
regard for monetary and
fiscal

policies,
This

is true, also for the
agricultural credit pro¬
grams. There can be no alterna¬
tive but that the huge and ex¬
tion.

Federal

panding

Federal

mortgage

credit

agricultural
subordinated

to?

Such

and

broad

educational

should have

uniting of

and

business,

labor,

and

tionary

programs
and policies
to
sound
economic

their

future

security, and for
capital growth and
general stability. All must be ed¬
own

nation's

ucated

the urgency

Fed¬

eral

budget in a balanced, if not
surplus, position in this period
of economic expansion.

The Chairman

of the Board of

Governors of the Federal Reserve

System, William McChesney Mar¬
tin, Jr., summed it up neatly
when

said

recent

state¬

ment to the Joint Economic Com¬
mittee:
I

potential inflation¬
ary factors, first, perhaps, fore¬
most, is the budgetary position of
.

among

the Federal Government.

As the

economy moves up toward more
intensive utilization of its produc¬

tive resources, it-is essential that

deficits give way to surpluses.
What this Congress decides, what

management,
labor,
agriculture
and, indeed the public, generally
decide to do will win

lose the

battle against debasement of the
currency with all of its perils to
institutions."

Singles Out Fedetal Credit and
Insurance Agencies
In this

that

the

setting, it must be added
policies

and

programs

ing and insuring agencies bear
importantly
on
the
nation's
growth and stability. It is essen¬
tial that these policies and pro¬
grams be coordinated with over¬
all monetary and fiscal policies if
the battle against inflation is to
succeed.

The

coordination

division, and in October, 1954,
appointed Assistant Secretary
charge of the stock transfer
division.
In May, 1957, he was

was

appointed a trust officer.

York, and the
Co. New York,
of the proposed

Wilmington, Del., under the char¬
ter and title of Bank of Dela¬

Eisenhower

"
.

Prices during the last six

months have been

stable, indicat¬
ing that inflation is not inevitable
and that economic stability can be
maintained. The immediate dan¬

„

authorities are expected to "; The common capital stock; of
the plan in two or three
The National 'Bank; of Fairfax,
Full details of the proVa., was increased from $300,000
posed
merger;* appeared
in the to $350,000 by a stock dividend,
on

"Chronicle"

;pn

page

and from $350,000 to $400,000 by
the sale of new stock, effective

the

Feb.
Chemical Corn Exchange
New

nounced

William D. Kerr

Gordon

Calvert

Grouj? or the Investment Bankers

...

„

M?rrif KS

k^*
the

The

Board,

and

have
to

Bank,

Citizens

Ohio

approved
dn
the
two

merge

ing and Federal Reserve authori-

Com-

New

Ohio,

Spitzer-

Savings

banks, according to a joint, announcement by Marvin H. Rorick
and Willard I. Webb., Jr., P'residents, respectively. The merger;
subject to approval by state bank-

its

Trust

York,

City,

out¬

ties

ratification

and

share-

w,Hi

opened • Freeport's only drive-in holders of both banks, is scheduled
i
banking facility March 9. It is to take place about April 30.
<
r
! located on Henry Street, just
The consolidation will be efJ? uL r S a
il?161'?} north of Sunrise Highway in the fected by an exchange of Ohio
+Ja
1 ^5? WS business
section, close to the Citizens common shares for Spitmeeting on Recent bank's Freeport Office and the zer-Rorick shares on a ratio yet
PVnn

Mnd

Island

Long

Garden

agreement

the

Trust

Trust' .Co

pany>

*np?k nn'^p
^
CorrlrPr
fiivoHnr -.nrV' SSt

McMaster

Street Adyisory

Broad

Morris, Research Diiector

Rorick

Toledo,

Advisory Board.
also announced

John

directors

Boards

an¬

Harold

Helm

Mr.

„

Association.
....

Of shares

(Number

Central
was

James A. Cathcart, Jr., has also
elected to its Upper Mid-

election

„

Board, it

March

town Area
-

Grand

been

America,* will address the annual
meeting ot the Mississippi Valley
,.

its

Advisory

24.

standing—4,000 shares, par value
$100.)
'
- ■ -v
•
.

Bank,

Chandler

elected

has

York,

Kibbee

Area

ogy.

President

the

ing

H. Helm. Chairman.

effective

ware,

est bank. State and Federal bank-

recent

follows:

stock of

kroYwNmZ °f b<isi»ess
Qty^ thM°iarg-

that such is not the case and that

Banks

1 of

Bank

Seaford, Del., with com¬
$150,000, was merged
with and into Bank of Delaware,

February* 12 issue.

developments have hardly
an inflationary psychol¬
Our latest view oh this mat¬
ter was expressed by William A.
Lyon, President of the National
Association
of
Mutual
Savings

National

Firsts

The

weeks.

gers

And

ces.
a

have the prospect of

balanced budget.
Public insistence

balanced'

budget for fiscal 1960, restraints
by both labor and "management in
wage
and price policies, sound

S<?ene

Washington

°n

Unity

be permitted to

American S. E. to

munity
common

impair the ability

unite

matters

interest and to promote
sound national eco¬

effectively

nomic policies.

There is

no reason

why mutual thrift institutions and
commercial banks cannot compete
on
the
basis
of
the
particular

President and Director of the
consolidated bank and Mr. Rorick
will become a Director and Chairman of the Executive Committee,

The

board

American

adopted

governors

Stock

Exchange

amendment

market's constitution
two

revisions

increased

of the
has

the

from

$300,000 to $400,-

Mice-President
Trust

structure, accordby ex¬
president Edward T,

dents

Meehan,

to an
change

announcement

New

Company,

has

York,

The

County

Kreamer

White
Plains,
been designated

sions

ban

transactions

$150 and $2,200 by

between

dollar. On
$100 and
$150 and between $2,200 and $2,400, reductions would vary from
transactions

few cents to

actions

one

between

dollar.

On trans-

$2,400 commissions
would be unchanged.
Mr.

over

McCormick

estimated

that

benefits each offers to the public.
Such competition will
strengthen
rather than weaken the thrift in¬

member

dustry and will enable it to con¬
tinue to play its vital role in our
expanding economy.

effected

income

would be reduced by about 4.6%.
The amendment would also elim-

sion

round
on

the

turn

transactions

exchange within

fourteen calendar

been

tsy

thp

tne

common

chants

snip

saie

npw

new

Stork

siock,

Spitzer-Rorick,
Willard I. Webb, III,
Lawrence I. Schiermyer, Franklin
y
Barger, Arthur B. Bare and

Bank

the

cjai

$1,870,000,

effective

Feb.

24.

(Number of shares outstanding187,000 shares, par value $10.)
*

•

Farmers

and

of
Chambersburg,
Chambersburg,
Penn.,
a
State

Company

chants

raise

notr

opposition,

only from the mutual thrift

institutions
from
from

the

home

themselves, but also
housing industry and
owners.

Unwarranted

bn mutual thrift institu¬
tions would also make it difficult
attacks

and

title

Trust

J59P'2P®
2

par

Farmers

and

Mer-

*onn™n

«?]

i
2r
*i'uuu snares,

oi22

value

nn\

$100.)

common

capital

stock

the First National Bank of Waukesha, Wis., was increased from
$1,375,000 to $1,500,000 by the sale
°f n.ew stock, effective Feb.. 25.
(Number of shares outstanding-—
60,000 shares, par value $25.)
;
*

R.
a

£?

nnn

Company of Cham-

April 1st Hervey L. Kimball
Norman R. Smith has been apa limited partner in
pointed Assistant Vice-President
D. T. Moore & Co., 50 Broad St., in the trust department of Mellon,
New York City, members of the National Bank and. Trust Com-*
New York Stock Exchange. pany, Pittsburgh, Perm., according
......

'
nnn

ul'» <*000000 1™
was increased from $15.0,,
cwk

???.

bersburg.

D. T. Moore Partner
will become

nnn

The

Trust

The common capital stock of
First National Bank in Dol-

Merchants

efforts

mountain

...

was

institutions.. Such
a

...

The

Trust

Company of Syracuse, New York,
increased from $1,700,000 to

commer-

banking department.
...

member, and Marion Bank, MarPehn., merged under charter

would

Vice-Presidents

0f Ohio Citizens in the

days
short-sighted
The amendment,
will become
policy for .our competitors to seek
the enactment of legislation de¬ effective on March 30, 1959 if apsigned to penalize mutual thrift proved..
?■>..
V

j0in

Paul F. Lewis

capital stock of The MerNational

Marvin H. Rorick, Jr., Horton
Rorick and John M. Houk, all

wiR

charge of the bank's drive-in of- fice in Briarcliff.

inate the special reduced commis-

commission

previously

W.
and

Vice-Presidents of

had

Harold

and

Vice-President

Treasurer.

announcement from Dr. Joseph

amendment, the same as
adopted recently by the New
Stock Exchange board
of
governors, would reduce commis-

York

Ohio Citizens; J. Arch
as
Vice-President and

Secretar y,

officer in charge of the bank's
Pleasantville office, according to
an

Anderson

Assistant

Hughes, Chairman. He sueceeds Clark E. Dixon who retired
bist week after more than 3d
years with the company.
Assigned to the Pleasantville
office in January, 1958, Mr. Mee-

one

The announcement said Marvin

*
Gerard

minimum

commission rate

ing

continue

W20' effective Feb. 20. (Number M Wilkinson, Durwood DuBois
shares outetanding — 4,000 alld Robert L. Knight will continue
as
Executive
Vice-Presi¬
shares, par value $100.)

providing for

the

will

Webb

Mr.

of Port. Richmond, New York, was

Revise Commissions

The

of all sectors of the financial com¬

to be determined.

the sale of new stock, the
common
capital
stock
of
The
Richmond County National Bank

A.__

The current controversies be¬
tween commercial banks and mu¬
tual thrift institutions must not

Long Island Railroad station.
By

monetary and fiscal policies) and*
McCormick. The amendment proa continued high level of
personal, vides
for
reduced
commission
savings can help to maintain
rates 011 stock transactions with
economic growth with stability."
money involved ranging from $100
to $2,400.
The Need for

It would indeed be

pursued by Federal credit-grant¬

assistant

Stockholders of J. P. Morgan &

Calling attention to the dangers:
and pointing out the
steps necessary to combat infla¬
tionary pressures is hardly the
same as admitting the inevitabil¬
ity of inflation. On the contrary,
we
have repeatedly pointed out

justified

bookkeeping division. From
1954 he worked as an
in the corporate trust

until

1951

mon

act

inflationary forces.

of inflation,
as
reflected
growth.
Labor
must
be
made graphically in rising.stock prices,
have been exaggerated in light of
aware of the harmful effects, to
the fact that our working force
themselves as well as to the econ¬
is not yet fully absorbed by in¬
omy at large, of excessive wager
demands,
beyond
productivity. dustry. We have unused produc¬
tive
capacity. Farm, output and
Business
must
understand
the
evils of a rigid price structure surpluses are reaching new highs.
We have high rates of individual
beyond
the
reach
of
market
forces.
Consumers must under¬ savings. We are witnessing tech¬
stand the wisdom of thrift for nological and productivity advan¬
dedicated

jn the

of inflation

pro¬

its aim the

consumers, in a determined effort
to develop and support anti-infla¬

free

be
modified

programs

••

Smith joined Mellon Barik<
1949
as
Assistant Supervisor

Mr.

Seaford,

with, the changing need to control

Association

Bankers

bank.

1957.

LOUIS, Mo. — William 0. Co., Inc., New
Kerr,
Bacon,
Whipple
&
Co., Guaranty Trust
Chicago, President of the Invest- voted approval
mont

Savings

Brooklyn

ST.

gram

Meeting of
Miss. Valley IBA Group

time to time in accordance

from

the

Annual

serious

presents

problems for economic stabiliza¬

to an. announcement by Frank R.
Denton,
Vice-Chairman of the

President of
Bank,
Brooklyn, N. Y., has been appointed a member of the Advisory
Board
of
Manufacturers
Trust
Company's Brooklyn Trust Office,
it was announced by Horace C.
Flanigan, Chairman of the trust
company's board of directors.
Mr. Weed has been associated
with East Brooklyn Savings Bank
since
1942,
having
served
as
Comptroller, Treasurer, Executive
Vice-President, and Trustee be¬
fore
being elected President in
East

Weed,

Louis

of individual savers in

thrift
institutions
can
compete
without rancor or irresponsibility.
example, public policy, op¬ They merit the support of all
erating through the various Fed¬ those who understand the coneral
agencies
concerned
with tinued need for a healthy, vigormortgage credit, seems at times ous
thrift
industry
that
will
to
be committed
to having an
enhance the economic well-being
adequate
supply
of
mortgage of the nation.
available

Bankers

and

ETC.

price of dissension. They are cog¬
nizant of their responsibilities to

For

credit

CAPITALIZATIONS

are

challenge

REVISED

high

the

BRANCHES

NEW

NEW OFFICERS,

in all walks of

men

CONSOLIDATIONS

the preser¬

vation of -the value .of the dollar.

Attacking Savings Banks

extension of monetary

proposed

provide united support for longneeded banking and financial leg¬
islation and for Government pol¬
icies that contribute to balanced

Potashnick

Director of

Bank

/"f

was elected
of St. Louis,

St. Louis, Mo., at a recent meeting of the board of directors, Jack
G.
Butler, President, - has announced.

Director

Mr.. Potashnick is also-a
of
the
First
National

Volume

189

5828

Number

The Commercial and Financial Chronicle

(1205)

•

Bauk,
the

Cape

Giradeau,

and

Mo.,

National

Mercantile

Cbase Manhattan

Bank,

Chicago, 111.
'

f,- •
"

«•

The

First

National

Bank

New York

its
common capital stock from $400,000 to $500,000 by the sale of new
stock, effective Feb. 23. (Number
of shares outstanding —
10,000
shares, par value $50.)
Clarksville,

increased

Tenn.,

will

dicate which

sites

won

buildings; for annual

con¬

pension

funds; for the repaving
of
streets, and for payments of
judgments, claims and awards.

syn¬

award March 10

Other members

issue of $26,340,000 City of
York, Various Purpose, Gen¬
eral Obligation Serial Bonds, due
April 1, 1960 to 1974, inclusive.
of

construction ■'of

tributions to the subway workers

Bank

underwriting

the

and

school

City Bonds

Chase Manhattan

The

manager of an

be used

by the City of New
York for the acquisition of school

Offers $26,340,000

of the

capital

common

The First National Bank

renceburg,

Tenn.,

was

stock

of Lavv-

The

increased

group

submitted

from

net

of Morgan

Trust

Co.

Co.;

$150,000 to $300,000 by a
dividend, and from $300,000
to $400,000 by the sale of new
stock, effective Feb. 24. (Number
of, shares
outstanding — 4,000
shares, par value $100.)
'i'U

cost

Freres

bonds

were

scaled from

the

Bear,

Paul H.

Paul H. Voigt has become asso¬
with W. H. Morton & Co.

ciated

Incorporated, 20 Exchange Place,
New

York City, dealers in state
municipal bonds. Mr. Voigt
was formerly with The First Bos¬
ton
Corporation
in
charge' of
municipal trading.

Thalmann & Co.
Blair & Co.

and

Incorporated; Hall-

of Western New

York; F. S. Mose-

Joseph Walker to Admit
March

Curtis; Schoellkopf, Hutton &

Barr Brothers & Pomeroy, Inc.; B. J. Van Ingen &

Co.;

Voigt With

W. H. Morton & Co.

will

27,

Peter C. Young

admited

to limited

Incorporated;

corporated; Federation Bank and

members

Trust

Dillon,

Eastman

Union Securities & Co.

distant maturities.

Exchange.

Company; Gregory & Sons.

the

New York

;'The First National Bank of Port

Arthur, Texas, increased its com¬

capital stock from $800,000
$900,000 by a stock dividend,

mon

effective

(Number

24.

outstanding—45,000 shares,

value $20.)

par

The

■?'.

Feb.

The

capital

common

Idaho

stock

National

First

Bank,

FROM

Boise, Idaho,

was increased from
$5,000,000 to $5,300,000 by a stock
dividend, and from $5,300,000 to
$5,500,000 by the sale of new
stock, effective Feb. 24. (Number
of shares outstanding — 550,000
shares, par value $10.)

Tom

Coughran

Executive
Senior
Bank

Vice

Executive
of

Officer

America

sidiary of Bank

was

(Int'l),

the

■■H

Na¬

tional Trust & Savings Assn., Cal.

Net sales of Continental Motors and its consolidated

Two

subsidiaries, Wisconsin Motor Corporation and Gray

Marine Motor Company, totalled

sub¬

improved operating efficiency, the effect of product

the fiscal year

$131,415,279 in

figure for the previous fiscaliyeqrwds

By A. S. E. for Six Yrs.

were $3,536,528, as compared
$3,583,301 in the preceding fiscal year. Net
earnings were $1.07 per share.

factor in

„

ket's board of
year

governors had

renewed

e x

dent

The

c o n

tract for

Mr.

•

served

Prior

and

has
the line of
meet tustdmei-(r^pirements.

expand^

•"™. .'

Motor

/* /.^

increase of

fo(r the

only

new

6% in weight

Corporation^ returned substantial

Ignition Engine

applications,
with

some

thrust

developed
Ryan Q-2C target drone.

programs,

covering

Two of the

now
a

wide

for

range

numerous

continuing on an accelerated basis,
approaching production status.

are

models

Military Standard engines developed at

company's Lyndon Avenue facility in Detroit
in volume

production,

are

educational contract for

third model in this series has been received, and two

additional models

new

model introdudion,

also

models, and
s,

new

increased

T. McCormick

that

are

scheduled for

production later

Commission.

its

showed"a profit in 1958. It

Bonanza with the

and abroad.

jection flew 7,000 miles from Manila to Pendleton,

Ore., for
Continental

Aviation

and

Engineering Corporation

experienced its best year to date, with net earnings
$1,349,740 as compared with $897,535 in 1957.

banks.

Net proceeds from the

financing
by the Banks to re¬
short-term borrowings and
estimated lending operations.

with

for

Continental system

world distance record, and

Continental

Dallas

new

0300A engine

of fuel in¬

Cessna 172

remained aloft at

day*, flying the equivalent of four

times around the

globe.

.STATISTICS.

j The Federal Land Banks offered

publicly on March 10 a new issue
of $86,000,000 non-callable 4J/4%
bonds, dated April 1, 1959, and
maturing
March
20,
1968,
at
9914%. The offering is being made
through John
T.
Knox,
fiscal
agent for the Banks, and a na¬
tion-wide group of securities deal¬

Continental aircraft engines set two important new
records in 1958. A single-engine Beechcraft

world

representation in inboard boats,

both in this country

important

in{^fteto0^A)^6rne.'incident

Sell 4%% Debenlnres

dealer

was

Major developments in the Multi-Fuel and Compres¬

the

'■ \ ■ •'■ *"' ?■

ne
Gray Marine Mbtor. 'CompdnyiTptfoduced

member of the Securities

Exchange

and

in the year.

Federal Land Banks

ers

turbojet model developing 60%

new

with

of liquid-cooled and air-cooled engines

for 1 959

1951.

was a

pro¬

the Toledo plant.

exchange !

since

sion

earnings in spite of reduced?votome,,and its outlook

president of
the

important

company's' luk^

Wisconsin

six

McCor-.

continued

maintenqne^f

engines needed to

period.

year

'■m

product

when business in general vVas^reduced.

bedn further

Edward

McCor-

mick's

change-presi¬

and benefits

programs,

year's operation with complete

earnings in 1958

Diversification

mar-

company's fine showing is ascribed to

of the first full

in 1958

has announced

turbojets have been released for production

duction facilities and tooling at
Net

James R. Dyer, board chairman
of the American Stock Exchange,

;■ *

$ 135,610,890.

with

new

1959. The

improvement cost reduction

ended October 31,1958. Comparable

Ed. McCormick Named

that the

1958

.HIGHLIGHTS.

and

for

of America

THE

REPORT

elected

President

Fiscal Years
Ended Oct. 31

1958

1957

J956

1955

1954

Engine output (horsepower)

10,231,837

10,549,655

10,783,043

13,876,317

14,659,577

$131,415,279

$135,610,890

$125,116,269

$145,465,155

$182,061,693

$3,536,528

$3,583,301

$1,604,924

$2,502,287

$4,542,748

$1.07

$1.09

$0.49

$0.76

$1.38

$0.55

$0.35

$0.25

$0.70

$0.80

Net sales
Net

earnings

Net

earnings

per common

Dividends per

will be used

Current assets

$56,101,397

$64,454,365

$59,262,735

$58,115,700

$67,362,396

pay

Current liabilities

$21,289,109

$30,598,007

$28,304,638

$27,553,219

$35,667,076

Net

$34,812,288

$33,856,358

$30,958,097

$30,562,481

$31,695,320

for

working capital

Ratio of current assets to

Sotheren Forms Co.

2.6 to 1

2.1 to 1

1.9 to 1

$2,355,000

current liabilities

$2,480,000

$2,760,000

$3,040,000

$3,320,000

LITTLE

FERRY, N. Y.—John
V. Sotheren is engaging in a secu¬
rities

business

from

offices

name

Long-term debt

of Mutual Fund Sales.

Property, plants and equipment (net)

$15,733,097

$16,223,841

$16,547,581

$17,219,239

$16,654,419

Stockholders' equity

Columbus Avenue under the firm

$49,279,352

$47,557,824

$45,129,523

$44,349,599

$44,157,312

$14.93

$14.41

$13.68

$13.44

$13.38

Book value per common

Personal

Planning Services

.Personal Planning Services, Inc..
has

been formed with offices at

405 Park

Avenue, New York City,

to engage in a

securities business.

Joseph Linden is president; Shir¬
ley

Feit,

Blanche

vice-president;

Linden,

and

secretary-treas¬

urer.

part¬

the Co.; R. W. Pressprich & Co.; Mer¬ Co., Inc.; Bache & Co.; Baxter & nership in Joseph Walker & Sons,
yield of rill Lynch, Pierce, Fenner & Smith Company; A. G. Becker & Co. In¬ 120 Broadway, New York City,

1.90%, out to a dollar price of 98
for

Co.;

Co.; The Marine Trust Company

as 3.20s, a
Brothers; Blyth & Co., Inc:; Lazard
3.17394% to

the city for the borrowing.
On reoffering to the public,

■

interest

Co.;
The
Northern
Trust Company; Harris Trust and
Savings Bank; Equitable Securi¬
ties Corporation; Drexel & Co.;
The Philadelphia National Bank;
Hornblower &
Weeks; Carl M.
Loeb, Rhoades & Co.; Ladenburg,

Lehman ley & Co.; Paine, Webber, Jackson

Inc.;

100.17999 for the bonds

stock

bid

Sachs

garten & Co.; Hemphill, Iioyes &

Chemical Corn Exchange Bank;
Manufacturers

Stearns

offering

syndicate include:

New
? The

Goldman,

Net proceeds from the -financing,

Group

Stock

The Commercial and Financial Chronicle

(1206)

Why the Federal Reserve
Urgently Requires More Powers
By DR. MARCUS NADLER*

Continued jrom page

Soutendijk to Join

Finance, Graduate School of Business, NYU

L. R.

Soutendijk, presently

will

fiscal discipline and debt
management control requires giving broader power to the
Federal Reserve—our only effective disciplinary force in the
economy.
In advancing this diagnosis and prescription,-Dr.
Nadler would permit qualitative controls to retard flow of
capital and credit into inflationary pressuring areas and to
facilitate flow of funds into socially desirable channels.

economy,
sustainable

utility.

order

economic

ease,

growth with satisfactory employ¬

usually
deficit

conditions

stable

chasing
of

must

subjected
in¬

direct controls

and

disci-

plines partic¬
ularly fiscal
and monetary
discipline and
debt

firm

Brothers Har¬
&

when

St.,,

mainly

e w

will

increases in leisure activity

The

the
welt

restaurants.

course

for them.
In

':act

considering

factors

these

investments, j
be constantly d

must

regarding the outlook for such in~d
as
home
furnishings, b
items, hardware, etc„u
A high saturation point in refrig-rn
dustries

Cultural Activity and the Market

erators

Few have considered the effects

special adviser and consultant
to the Bank's customers in mat¬

.growth

the basis,5
attitude g

optimistic

our

recreational

MMM

Soutendijk

L. R. W.

serve

base-,.-

are
unfinished, and of q
family soon finds a need

they

borne in mind. They are

has

■

and 1

windows

added.

for

cultural activity on the stock
market.! Some phases of culture

manage¬

storm

must

'.Tfjy.

ment and attic are wasted as longst:,

happened

hotel and motel industries

Stock

Exchange, on
July 1st next.
He

what

and

doors

photographic equipment.
It
provided
opportunities
to

City, members
the

freer

and travel stimulated demand for

York

and

indication

Co.*

Wall

New

large

financed

only is confined to the
outside the home, but
travel, which represents ex¬
penditures of billion of dollars.
The- trends
in Eastman
Kodak,
polaroid and * Bell & Howell are

Brown

riman

not

quidity of business concerns and ters involving overseas business,
the banks and thus handicaps the
particularly in the European Com-, may seem a bit remote to the
policy
of
the Federal Reserve mon Market countries. The stead¬ realistic
appraisal of the security
authorities when credit restric¬
ily expanding interest of Ameri-, markets. Nevertheless, the growth
tion again becomes necessary.
can industry in direct participation
of mass culture in recent years
Since one cannot expect that in
in European markets has resulted has provided extraordinary oppor¬
the foreseeable future fiscal disci¬
in increased need for advice and
tunities
in
securities,
whether
pline and debt management will assistance from banks active in
companies
producing
television
exercise an important role in eco¬
international business. The activ¬ sets or electric organs or mass
nomic control it is highly desir¬
ities of Brown Brothers Harriman circulation media. I do not agree
able that the powers of the Re¬
& Co. in this field will be, super¬ with the motion

cur¬

certain

with

operates
which

home

'•

And the Stock Market

the

banking

through short-term Treasury ob¬
ligations.
This increases the li¬

power

the

relatively

pur¬

rency,
to

and

become

with

In periods of active credit
the
Federal
Government

ment

associated

free

achieve

:3I

A&S".

Changing

Financial Counselor to The Neth¬
erlands Em<

Washington7

Our unfortunate inability to achieve

11
■:

Brown Bros. Harriman

bassy

Consultant to The Ilanover Bank

Thursday, March 12. 1959

-y-gry,

Professor of

picture industry
television, their
Following the liberation of The opportunities have declined pro¬
Netherlands in 1945, Mr. Souten¬ portionately. The amount of time
dijk became attached to the Min¬ that the average American spends
istry of Finance and, since May/ at home is abnormally large based
1946, has been Financial; Coun¬ on the situation in previous years?
selor to The Netherlands Embassy
This; would undoubtedly be re¬
at Washington. As a representa¬ duced
if
there
were
greater
tive of The Netherlands Ministry; inducements
provided
by
the

with

stoves

these

suburban*?
to A

unfavorable

is not as
industries

would

point
without v
growth./However, the
tendency will be away from pur- /
chasing individual units. Empha-n
sis will be rather on coordinated
high

saturation

suburban

kitchens

centralized

and

the 0

concentrates on%
such
merchandising will better ir
reflect the suburban growth thani;
those concerned strictly with the q
which

company

individual items.. *

.-•

'dfA

ment.

only the
quantitative powers to
market operations
and to change reserve require¬
ments and the discount rate, but
also qualitative or selective con¬
trols.
The
qualitative
controls
should be broadened to enable the

S.,
unfortunately,

cipline is

Marcus

present
conduct

Nadler

not

because

primarily

possible,

the

actions of the Congress are domi¬
nated by pressure groups who
seek to further their own interests

without

considering

welfare

the

more, even

if it

control

broadened.

Those should include not

real fiscal dis¬

cal

authorities

serve

In the U.

the

nation.
were

Reserve authorities not only to re¬

general
Further¬

tard the flow of credit and

capital
projects which would ac¬
centuate
inflationary
pressures

feasible, fis¬
is

best

slow

open

into

vised by Mr.

Squtehdijk. |

that

Finance, he has also 1 served
during this period as an adviser
the

and

achieving
its
objectives.
Debt but also to facilitate the flow of tor of the International Bank for
into
channels
considered Reconstruction and Development.
management is also not possible funds
as an economic control, partly be¬
socially desirable.
A
graduate of the Rotterdam
cause
of
the
recurring
budget
School of Economics, Mr. Souten¬
deficits and partly because the
dijk was associated for nine years
Forms Sycamore Inv.
Treasury has to compete with
with the well-known Dutch bank¬
Other borrowing agencies of the
RAHWAY, N
J. — Gertrude ing firm of Labouchere & Co.
government
and
with
govern¬ Schifter has formed Sycamore In¬
ment-insured
and
guaranteed vestment Associates with offices
bonds. This creates an exception¬ at 526 Sycamore Street to engage
a
securities
business.
Miss
ally thin market for medium- and in
long-term government obligations. Schifter was formerly with L. L.

Chicago Inv. Women

The
only effective discipline
that has been exercised is mone¬

control;

tary

restricted

which

only,

Fane

However, this is
quantitative control
affects the overall

because

lenders

BIRMINGHAM, Ala.—Univer¬
Securities
Corporation
has

sal

been

formed

Brown

must

choose among competing borrow¬
This raises the question of

economic

CHICAGO, 111. —The guest
speaker at the dinner meeting of

with

Marx

offices

the

Building to engage

securities business.

Officers

Samuel

T. Nash, Jr., Presi¬
Claude B. Rogers, Jr., and
Frank D. Hays, Vice-Presidents;
Mary R. Breeze, Secretary-Treas¬
urer; and J. It. Chandler, Assistant
Secretary-Treasurer.

are

dent;

profitability

should take precedence over social
•Summary of a talk by Dr. Nadler be¬
the Metropolitan Economic Associa¬
tion of New York, New York City, March

fore

William

Monks

Assistant

Manager of the firm.

6, 1959.

Members

revision in

vote of 878 to

The

the

New

York

Stock Exchange have approved
schedule, effective March 30, by a
08, Keith Funston, President, has announced.

the commission

schedule

new

affects

minimum

commissions

involving
transactions ranging from $100 to $2,400. Net effect of the revision
will be to reduce commissions on transactions between
$150 and
$2,200 by $1. On transactions between $100 and $150 and between
$2,200 and $2,400, the reductions-will vary from a few cents to $1.
The

revised

schedule

term" commission

"round-term"
the

also

eliminates

the

so-called

closing side for

persons whose purchase and sale of the same
completed within 14 days.
Commissions on transactions involving more than
$2,400 will
remain unchanged.
*

security

and

new

shown below:

present

schedules,

for

each

shares,

1
Under

$100—As mutually agreed
399—
2% plus$ 4.00

400

$5,000

$2,200 to 4,999— 1/2% plus $19.00
$5,000 and over—1/10% plus $30.00

400 to 2,3 T—
1% plus $ 7.00
$2,400 to 4/99— 1/2% plus $19.00
ana over—1/10% plus $39.00

(The

basic

and

lot,

the

$6.00

top

remain

lower per

minimum

commission

unchanged.

Also

the

odd

for

$1.50
lot

2,199—

transactions
per

share,

commission

1% plus $

involving
$75

per

continues

8.00

$100

$2 00

transaction than the round lot rate.)

change in rates was approved by the Board on Feb. 19
constitutional amendment was
immediately submitted to the

membership for
of

the. growing .number of

War

veteran
the

and

1,366, votes

vote.

were

cast

Out of the total Exchange membership
by 949 members.
Three ballots were

defective.

women

steadily expand¬

our

out¬

social

well

economic

im¬

the securities market has felt the

relocation of

class

Minn.—

resulted

has

growth

parable

The

services

Inc., Pillsbury Building.

market.

Clarey,

which

requires is

owner

the

home

doesn't know about many

necessity for daily living
get to the station, the super¬

comes

market, the dentist and
scout
meeting.
Home

Company, Inc., 208 So.
He

was

formerly

with Zahner and Company.

the girl
laundry

equipment must replace the city
laundry. Garden equipment and
supplies can add up to quite a
sum,
particularly
when
power
equipment is used on
postage
stamp size properties.

(Special to The Financial Chronicle)

Street.

generate 57% of our ''
In 1956, for the !

today

national

income.

first: time

in
the

exceeded

history,

collar

white

number

our

number

the

workers

blue

collar workers. This does not

im-J4

technology
underlie
almost all
important changes, other factors/*
are important as well.
The
economist, the
business
analyst

the forecaster who. has//
cyclical changes in our[b
since the end of the war b

missed the

those

been

who have

consideration

to the factory

chine and

givenlo

the

ma-n

and not

enough to the changing America,

particularly
tion of the
1958

for

regards the posi- fx
Take 1957-x

consumer.

illustration.

had A

marked

inventory decline, lower
expenditures and sharply,:
reduced auto production. Yet the Xf
a

capital

combined three factors gave

business

recession

Since all of

are

us a

considerably

less than that of 1937^1938.

/!/.

interested in

the

security market, may I urge»
you to consider the proper influ¬
ences
on
this changing America.".
The indicators that depict
con¬

temporary America are different
from those of 20
or 25 years ago.
The service in- >

in many respects

dustries should be

one

of the more-

important considerations.
How can you acquire a better
knowledge of the service industries?
Before you invest in any
industry or in any company youshould acquaint yourselves withwhat comprises the cost of serv¬
.

Joins Ranson & Co;

Market

owner

extensive that it is

—to

Ranson &

com¬

before he takes title. An auto be¬

MINNEAPOLIS, Minn.—Bennie
Berg has become associated
Shearson, Hammill & Co.,
Rand Tower Building.
He was
formerly an officer of the Secu¬
rity State Bank of Fergus Falls.

Dennis R.
with

the

with

—

middle
to

fortunate for the builder that the

With Shearson, Hammill

Cowell has become associated

pro¬

stores
and
satisfy
this
lush
list
of goods
and

services

Thomas C. Breen has been added

large

cities

the

from

suburbs

(Special to The Financial Chronicle)

of the American

portion

Joins Keenan & Clarey

WICHITA, Kansas

tries

Service indus-?:-'

industries.

service

undue

plications. There is no doubt that

both

Korean

by industrial or com-'/

modity producing industries to the

have

this; changing.
America with suburban develop¬
ment. Suburban development has
helped the auto, it has helped the
retailer and it has helped industry
in
general. It has had definite

The

the staff of Keenan

economic structure away from

dominance

economy

importance

impact of this important change.

MINNEAPOLIS,

our

War.

revolutionary t

most

which has occurred in%
American life, and which seems y
to have gone unnoticed by most X?
analysts,
economists, forecasters?/
and others, is the basic shift in r

ing^ cultural interests, have vied

business meh In
He is originally from St.
is

the

Industrie;

changes

ing, leisure time, as well as grow-

young

and

World

the

one

working and

round

The

and

upsurge

PRESENT

$10^—As mutually agreed
399—
2% plus $ 3.00

100

odd

Louis

Development

in population, the
revolution in income distribution,

Chicago In¬
Exposition.
being, sponsored by the
Chicago Association of Commerce
and Industry.
Mr. Porter is the
assistant managing director of the
Fair and he promises to tell us
ALL about it: when, where, why,
and the background of organiza¬
tion, personnel, and financing.
Porter

Suburban

The

The Fair is

standing
Chicago.

Service

topic will be:
Fair

other cultural activities. Holly¬

are

His

industry

One

ply that only white collar workers*/
growth in importance of
are found in service industries or
the Record
industry reflects a
that all employees in manufacr;f
growth in music appreciation. I
turing
plants
are
blue
collar /
am not referring to rock and roll
workers. There is a sizable over- < »
or
any
other
temporary
phe¬
lapping in both areas.
nomenon, but rather to the inter¬
Employment in service indus- '
est in better music as exemplified
tries exceeds employment in mail- '
by the development of stereo and
ufacturing, construction and ir in'-^f
Hi-Fi., If you want any better
ing combined. It may be an over- ;•
indication of the changing char¬
simplification to say that science;,
acter of American life, note the
and
technology have been
the
increased amount of radio
time
cause of the growth of the service > x
< which is being devoted to music.
industries.
Although science and

ciation of Commerce and Industry.
ternational

motion picture

Switch

The

(Special to The Financial Chronicle)

100

NEW

Under

100

Association, will be G. Walden Porter, Jr., Director of Mar¬
keting Services of Chicago Asso¬

wood, even with the television
industry, has a greater oppor¬
tunity than at any time in its
history, but the product must be
better, promotional appeal must
be greater and its whole market¬
ing concept must change.

was

The

Chi¬

Bar

"round-

transactions completed within 14r days. The
was
a
reduced rate that applied on

commission

Women

to be held on Wednesday.
18, 6 P.M. at the Chicago

cago

March

Mr.

N. Y. S. E. Revises Commission Schedule
a

Investment

The

ers.

whether

To Hear at Dinner

Inc., and Osborne &

Form Universal Securities

availability and cost of credit. In
periods of active credit restraint,
quantitative
credit
control
as¬
sumes the character of qualitative
control

& Co.,

Thurlow.

Surinam

Government

theater

Alternate Executive Direc¬

because

There

suddenly

room for a
patio in the
yard and a freezer in the kitchen.
The house is bigger and needs

barbecue grill and

furniture.

The

wind

blows

icing and the cost of marketing..
Since government is a part of
servicing, and government ex- *:'
penditures represent a good por¬
tion of .our current gross national ;
product, you should have all the A
information possible as to what
the government policy is regard-1
ing defense, for example. Is de- *

Volume

fense

The Commercial and

5828

Number

189

companies which have been in the

for, air¬
planes, or missiles?
What is the
government's profit retention pol¬
icy and depreciation allowance?
Since state and local government
operations also include services,
the question of spending on the
part of these for highways, schools
and hospitals,; is also most *imit

period, since

vanguard in past

spending going to be con¬
on traditional types of

Will

is very high. Yet who would dare

tinue

which

have

the

hand, those
have lagged may begin to
this dynamic trend.
What
tried to highlight is a few
most significant economic

and social

developments which

important and will
more

con-

On the other

so.

reflect

will

years

important

become

all standards

ABA Film Now Available

that it is too high, based oil
the potentials of the next five to
say

ten years of a

The

fall

for

television

has

available

Van Cher Investments

ber

on.

for

banks

broadcast

been
purchase by

and

bank

changing

Consumers.

America in terms of

middle in¬

public, increased number of

come

and-white

stock

which

critical-the firm

for

16-mm

sound

film,

designed to dramatize

variety of services offered

friendlier ["image?

the

may

„

additional

The film makes

use

Council, American Bankers

people

his

community.

banker's role is shown in
of flashbacks.

are

countless

similar

stories

in the

same

way as

the characters

portrayed.
■

:[ j

Wineman, Weiss Partner
Wineman,

Weiss

Co.,

Broadway, New York City,
bers

$50.

bank

The cost is

bank

sehftivlnxuries
current

and

the

group

Exchange,

the
on

New

York

expansion, in

demand

for

better

distributors; such

as
Sears, J. C.
Penney;* who .are; adequately diyersil'ied and "flexible to meet not
only the needs of the growing
same

time

cater to the lower income classes.-

i
M

There, have been substantial in¬
in

creases

values

securities, but
some

distribution
■t

{■

be rendered

;

II
•

portunities. Among these are the
..Utilities and hotels. The new, serv¬
ices that will

More than

1,500,000 families served

m :V.:

by the

hotels

will be many, including the
credit card. Although this may be

•

temporary phenomenon, it nev-;
ertheless is not actually of recent
origin. It is a manifestation of the
honesty of the American public
a

■-

and the fact that

consumer

stocks, these

have lagged. Many of the service
industries provide investment op¬

with

compared

of the "growth"

f—V«

mm."y,: ;

Milestone of 30,000,000 loans

JUUUM

reached

: r *•

'j-

credit,

SYSTEM

credit in any form is an excel¬
lent investment. There are a num¬
or

Earnings at

new

record high

ber of credit companies, or finance

companies
which

should

These

"Big Board"
ican Stock
The

have

specific,

show

good growth.
on both the

For the fourteenth consecutive year

represented

are

well

the Amer¬

industries

able

been

which

increase

System recorded

pro¬

year

those which have
advantage of the technical

taken

are

advances.

this

have

area

been

possibilities in

the

ware¬

millions of families,

My answer is no. The service in¬
dustries will continue to grow and

the cash needed

changes in the" next decade

Conclusions

changing

expenses,
&

America

should

financial

heard

great deal of the
Sixties.
Rather than to

golden

the

$2.07

$1.91*

$1.00

$.95*

Cash Dividends per
Common Share

$521,551,077

Amount of Loans Made

$712,861,626** $754,673,124

many

by advancing

refinance bills
pay

Number of Offices

1,089

$509,642,263

$492,742,936

Instalment Notes Receivable
(after deducting Unearned Discount)

medical

and to help through

1,142

Adjusted to present capitalization.
♦♦Principal only—commencing in 1958 unearned discount
(approximately $10,000,000 for the year) is being excluded.

BENEFICIAL loan is

for

financial statements and

beneficial purpose.

Stockholders. A Copy

notes

of tiie

conjunction with the
appearing in the 1958 Annual Report to

Report Will Be Furnished Upon

Sixties I
would be more inclined to empha¬
size
the
opportunities
that are

speak

this

land

of plenty in mid century.

There is little doubt of the im¬

pact of this changing America on
of

security market.
it

has

the

have

already

record
been

new

the

long
be

reflected

highs

recorded.

term

ma/ice

A large part

been

prospects

outgrowth of

Beneficial

which

■II

Building, Wilmington, Delaware

However,

they have not adequately reflected
Will

Request.

glowing

available to all of

the

$511,768,524

The information contained herein should be read in
.,.

Net Income per Common Share

temporary cash emergency.

have

$ 20,152,232

provide opportunities, particularly
imaginative individuals.
We

answer

problems of

already incurred, to

be as \dramatic or even more dra¬
matic than in the past decade.

provided by

Beneficial has been the

may

$ 21,731,164

•

Total Assets

since the book, "A
Americawas pub¬
lished, but even before that, the
question was raised, are all of
America's needs so well supplied?

the

covers

;

The small loan service

only

Net Income

of incorporation of Beneficial

Finance Co.

Changing

1957

to¬

period beginning in 1929, the

year

housing, where electronic controls
speed the flow of goods, type the
bills, etc.
Not

milestone

taling $7,800,000,000. This

future in fi¬

insurance, government, and
large retail stores. There are also

nance,

tremendous

year a new

reached—30,000,000 loans

was

the electronic data processing ma¬

chines, which have

high—every

since the end of World War II.

During the

The most recent devel¬

opments

a new

1958

highlights

earnings of the Beneficial Finance

Exchange.

service

ductivity

which

chang¬

ing America. Not all industries

MORE THAN

mem-

Stock

Stephen L. Joseph to partnership.

merchandise and less emphasis on
price alone. It should be advan¬
tageous to the independent as well
as the specialty store.
At the same
time, it is favorable to the large

middle class and at the

April 1 will admit

luxuries.;

implies

economy

every community, and others can
benefit from their banks' services

16, New York.

sponsoring

The
series

picts the experiences of only three
people, it is made clear that there

spending in supermarkets,
more
liberal buying of packaged
fopds^; ab<^ rhqfe liberal spending
Our

York

identifying

While the film de¬

Association, 12 East 36 Street, New

leader

docu¬

small-town banker is able to
step
in at crucial times to
help the

liberal

for

mentary technique to show how

na¬

purchased from the Public Rela¬
tions

be obtained for

$10.

tion's banks and bankers, may be

of Walker & Co.

name

groups

by commercial banks and to build

hdss from offices in the Peoples
closing, may; I state .that the * National ~ Bank Building, udder
market

was

the wide

women working, and all the fac¬
tors I have mentioned mean more

mem¬

local showings.
•
<
Prints of the 13.^-minute black-

indicators.

ex¬

made

now

of;

Associ¬

film,
Know," released last

clusively,

are

Bankers

educational

newest

changing America, "A Man

American

ation's

with all its dynamic features?

even

time goes

UNION CITY, N. J.—Van Clief
making investment; decision
Inc.,
has
been
on the basis of the -foregoing, let-fohned
Updrtant.;
,
f
■
with offices at 415 22nd
'Howeyer^i.pf oven greater im¬ me point out that the choice of; Street to engage in a securities
portance is the distribution indus¬ the individual company is as im- business/:^ Officers are Anthony
try; Total retail volume approxi¬ portant or even more So as picking Van Clief, President; Ruth Van
mates about $200 billion. It is the
the
industry. I; would strongly Clief- Treasurer and Sophie Dite,
lafgesfi tj^oh^dnent .Jof ; ouiWtotal urge that you appl-y; the£ normal'1 Secretary;
grbss national spending. 'Oppor¬ yardstick for. investment-such as
-//;
j :
tunities ihtjbis f ield -have not been history of the company, current '
Forms
ad^uately ; considered. We have, management,
fihancialt,:p6sitipn,';
Form Walker & Co.
used. thef w j? o n *g yardsticks to expenditures
for - research
and •;
TYLER, Tex.—Harold H. Walkmeasure the current and potential
development
and. - other', basic^ej.;is9 e^aging in a securities busi-

needs

231

(1207)

centrated

equipment?

i
Financial Chronicle

1,100 OFFICES IN THE UNITED STATES, CANADA AND HAWAII
S:|: :£

I
s

o>.

r—•

t-»

as
•1

co
to

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B3O1Na/Dn%Sd
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STATE

&z pcioC

Princpa|-,nd OI)tcober -Californ State

State

the

3341%%A%,,
5%,

1956,

incl.

Price
Yield t

1959 1960-84,

Act

Due

$50, 0 Bonds, SSeries ADapterdil:

Coupon Rate

1.90% 2.20

tion,

Amount

Due:

opin We;blivj.thes certain

Section-]4.5 ofopjnidfv

",1

the

State and'

and

-1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977

3'A 3'A

1,October

A VV: :'Y

3'A 3'A 3'A 3'A

3'A 3'A

1978 1979

1980* 1981* 1982* 1983* 1984*

3'A

3'A 3'A

31/2 3'A

POAYRMIENCTLURDSS

b(itnAacoedrruesed)

Price
Yield f

maturiy. 1980-4, pacluruesd O11c9to7be,r,

$1,30,0 1,30 , 0 1,30 , 0 1,50 , 0 1,50 , 0 1,50 , 0 1,60 , 0 1,60 , 0 1,60 , 0 1,70 , 0 1,70 , 0 1,70,0 2,0 ,0 2,0 ,0 2,0 ,0 2,30,0 2,30 , 0 2,30 , 0 2,50,0 2,50 , 0 2,50.0 2,80 , 0 2,80 , 0 2,80,0 2,90 , 0 [tYioeld "•Bmaantudrisng atpar, after ieh r;in.
call

and

APmroertmizaiufn

V
3.60
1.90% 2.20 2.45 2.70 2.80 2.85 2.90 3.00 3.10 3.20 100 100 3.30 3.35 3.45 100 100 100 100 3.55 3.55 i. 3i60 3.60 3.60

Gain,
Tax

Due

> 1in96c0-8l.4,
RAMAOTUENTSS,, PBroognadms,

IS UES,

scubhintoers,dacibe

3'A 3'A

:A3'A

3'A

Bond

■

Vet rans

they

2.45 2.70 2.80 2.85 2.90 3.00 3.10 3.20 100 100 3.30 3.35 3.45 100 100 100 100 3.55 3.55 3.60 3.60 3.60 3.60

I960 1961 1962 1963

tsoubject terest nofotice ineach

:"as

lis

bescahlaedl

m
*

1960 1961 A 1963 1964 1965 1966 1967 1968 1969 970 1971 1972 1973 1974 1975 1976 1977 1978 1979
1962
f

1981
1980* * 1982* 1983* 1984*

sucble.into,deascrib

$50', 0 1SB9er5is, D11,ate9d:-M5arch D1ecmb,r Rate
Construci $15,60%,0 15,60,0 15,60,0 15,6t0,0 15,60,0 15,80,0 31,80/,40 13,801,/0413,801,0/413,801,/0423,01,0/423,0',0/423,0I,0/423'A,"0 ,0 23,0V,0232,0',A0 23,01,0/2"l32,0,0 23,0',A0 23Y,01,/0223,40',A0 23,4-0',A0 23,40'A'- 23,40',A0, 32,4'0/^2,0> tmoaturiy. 19m8a0tu-rin4g, ppacluaruserd,D11ec9amf7teb,rr, t,-.t»
Coupon

of.

Act

Due:

State

Amount

tYieId

"•Bonds at herein,
call

and

hn r/t
7hr<r>

2
o

O
o

O
3*

tsS

S.bn
Mal

^t•%.;

CFBToIC&Brpnishlatyoci:etnh.,

£.

*,.
ij.H
Y!-

&aCH nosen.

IAndcru.s, &CL.Buroton.

&CRSWtialo..ms Y—••,.

Wulff,

Edward

CTBCNoramutnipisadtktnylyChiocagf&LBH&CHGCaenaloih.s.s, &SRMItonlndcee., !!-, IPnickar.d, CTB&SPorarmouvinpsdagektnnty Co.
I&RGR&CHiaeRpiurandfgheoeonhsllp.tr, CA&REnomlcpeaan..yy, Incorpate,•d
YY''Y'Y"77.,-:,/:.r•v;

C&Nuvoe.n (Incorpated)
John

Co.

C&Brook.s Incorpated C&Meorick.a,
J.
Wm.

L.
I.

L&Gelicmkenbhaous

&oC rbet Co.

&Whitaker

L.t
Rober

C&Pinocu.s

Burns,

bfdtrMt'ie6v^CA?(,BA51Ah8nlaSr9oHpotjsFic'nCceo4l6d*f}ISwipch-;ygoabefrnsTGFutghunxlrdf.lvlih¬oaetaerizdsaSbtspuhoirmacrhemowt.n.pzehudisdcf A'ng\*eY-•lis., OrYoegIn'c■ofnrpV«,ated. Ne.Jwfark•-■,. *:. IncorCMKpaaMCt,enid;tsyio.t,.y \YInjcorpat:ed( PSaoMiiunneflatpls YIco•rp';ate,dR
yKD™*ToEem Hearhilnqgutos, GSeM&CRHdaCTNobomurmhulpttpa.esan,nyy•liLkIBNTfFBNTWn&Csrdof&k..C&WRPHBS&CWusFaPCo&tDWpzhemhcoehinoitlltda.ps.nr,TLJBNCaooectnkrieb.r-uAnggl \YY--•.'V.';:l NYWeoswtkrfn IncorpIncaoterpd■at,ed7 S&BR&CHAWEWueodinwabcnhr.rtFNTBTaCFNoitahrrpihtsnoeasetknlIMK&CIKMynao-micHfcpgt.eyr,,C&WJBNTC&LhaCSIR&oAteinhng.aoueruonkcdmld..aw.,SUDIcJMCCuJW&rmlahpminhrsl,opdkytssy*''y'■"-•■v4>'>if".y.;:f-ji7/_BHAEG&TFCNCaBF•iaeohinn;metarh.nlCL&CNoowtmbweuprskag.nly, Incorpate*- bfuronwiseafhmtrldaouhaowdntbbeosmnrivleidy,
SpOino bbltieshruenctdoyrwv faamqils,MAGtnkeyy Cf. BTFNTCCMBTohtnminhaspsktenaklnytyCh/YioVcaagefrwkSBSe&CALumrmavy-rionpgk.sy, &DCevoin. BS&Cteaorn.s, CSercpuoaitns TMCeormcuapnstailny MD&CeB&CWAGBS&CrAloiec-hrScdhalcimeopogn&kktwhCx..slon.,, HNBTW&SHreatyguspntnsyrkes.t, LFRRCLFMN&&CBhooosaiaednev.dlbksy, SICIAW&CJnnro<dtorccchhew..gss, .MFESWHKouuiktrhasn, CT&B&CoSBCT&Bramtoeuaivphmntxsomntpestenyl.r'sy IHFGSIihuizrblpoeacv.apcnk, YSBCCEPWS&&CFnhawlgdmoicobtkryke,Y-..,_C&WBGHnWWRWatorpukatbolsie..dd,sr IQKNCCFD&&BAHDJveuampiooly-Tngek..sltr JSCONrRIP&CRooihuhm.pnorcapibetah.n,y &LAC&R&RSSPeMugocatathsybhoecremnrrayklhtni.dd,,, CISBnCCBBl&oouaumwnsic.vpppbhhyy EJRdCDRAD&&PSWokebiabyowgrrgftsa.te.ns,r, LTCpFAG&aChrocimzphnafyy &CSHNWTMD&CIBMenwuvooaberuslbonctnlmrdi'fpkinsl,YY'•*-.Y"-7./tSRDuBmenmasyghipshcaea,wry
I&CSntuocar.t

El&liSm oinss
YI'ncoirpa->ted

Halsey,

IJCS.U

fJHiummy

hc,VeBttrahnso'uisnndders ithnocppuuinrnesfoesl, Athoofft.1956,u bopprpaintuycnmhceftanlal ftaocmramcneqsudsire,

tlui\,vu

Bond the

Vetrans' Vetrans' Vetrans'

&
Ellis

A.
D.

C&ompany
Vick
B.
M.

Co
&.

C&Woemsthpeiamnery

Putnam

'C(.tC&F%GiDBorlagefxnk, TUFD&orinmdupesaltckyLHEWbw.]Y*•.SIPh>f\BHIncoYrpatedC,&DRTimksuy:WLKMAlwv7^-Ggonfcpar"YS■'.BNFptahe,CTDM&musidbyAVIlnoc ICTWnohmitec-pPal.sy,&DSuvb;MBLdr &CFErAtnolemsapckyMWLDuid-, '/>7;■.YvSIoamblrns requst.
KaYns.
Incorpated

Dal s
of

Mineapols,
of

:YLou;,i.s

V. .

for

Blunt

SFranoc<isno

toerans

Nashvile

Incorpated

L&rCecohe.n

St.

Watling,

of Jx'r~vCompany
, C&JRWoilmspt.oanny CCTFleivhrosaen.td NPBraooavtiidonenfkcl CPRoyampraknn,y C&RPFeadrpkae.th &CFSC&atlohokreek.sy, TCMiolwhmaupkeeany Company bttohrmenoeeldasasinyg
tuapnriteooumyTiz%ae ■(ilIl!|.
bdleg«-■a•r isaowuffnnheesredd, wuheorwits lTHeonghoaayebfliet bMOCaleifrosrniy,c-dk., FSSAtuaontrdniesfyeos;,
CCSntnooC&k.CnstBTarnukes TCHaruonid.t CJBExcah.gke U&Sencuoiroits EBNqautiiotnablel CJauckrstoisn Soercpuraittiesn CFrpirastint CMCrpaatri.ln CVIJB&ogmaep.any &CE&Csaboor..k I&CBaocco.n,, CE&ldoreongs. TNoamhtioenercl leovanfdTCoarmunpsdatny CIFWCnraocig..e, CNYHanoesoerwk.tic &Co. Company Co. Lynch CInoc., ICnomcpa.y, ICRonobinmscp-Haum.phyre,y KBGCoeamourpgm.any CDSoerpcaurvittiisns, TTCFarihuronssed.tt MNeartcionnll ■ R&BNoadtimonaknl
IhINBlaintioonksl CoicagfoPFB&Seimlenaricthrr,ncorpated SC7oercpuraittins C&CRoeymnoplad.nsy

Inco"rpated

NN.aew rk,

Incorpated

Meomphfis ; Y,

Conti ental CTromupsatnyLynch, Webster &
and

Merril

Stone
&

Incorpated

Shields

Incorpated TN.ir p
Chas.

CFraancliisf.o,

San

tcguiaons !■IH,-.

R&hic ards Industrial &lMuWealnsey, Auchinclos, Mor is,
&iWhte
&ncM Do ald

Incorpated

P*
^
"

isrmg

aprovl Stoaef &
the
of

-*>>- bonadres owatheselr
—

These

os
-

tsoubject

S&. RHairpimlaeny Incorp ated
Amoferica A. CCheomricnal
T.
N.

Bank

Eastman

Paine,

First

Lee

Boston

Incorpated

Seatle

& Dilon, Seatle-First Web er, American Michgan Hig nso duPont McEnte E&dwards Bofank BWaachnovkia F&Braalmiohnali, C&Neowhakrd, E.Weigold C&olins M&iler &eL onard G&undy & C&McCoormi.ck
Incorpated
&ud I.inc s
Stro Fra

&amo s cir ular
Th

Elkins,

Field,

Adams,

G.
A.

National

Chas.

Julien

Hayden,

Moore, Wood,

Dit mar

The

and Cumberland

Atkinson

BFeadrnatikon &cCMDoone.l Incorpa,ted Rockland-Atlas &aCT lmoag.e 12,195
March

The Commercial and Financial Chronicle

(1210)

Guerin

Turner, Inc., Dallas, Southwestern Regional Chairman;
Cunningham of Kidder, Peabody & Co.; S. Richard
Harris of Courts & Co., Atlanta, and Albert C. Purkiss of Walston
& Co., New York.

NASD Announces Appointments

Francis

National Committees

Dealers
nounced

Investment Companies—Franklin R. Johnson

Securities—Jack M.

Bloch

New

plan would belJ

of Colonial Dis¬

con-

tribution going into a traditional
fixed dollar annuity contract, and
half into a variable annuity based

on common
stocks. Following the
'
study,
the
College
Retirement T
Equ ities Fund was established in /

1952 by special act of the, Newv.^.
York
Legislature,
to
provide',
.

York.variable

Foreign

retirement

with half of each retirement

tributors, Inc., Boston; Hugh W. Long of Hugh W. Long & Co.,
Elizabeth, N. J.; Rowland A. Robbins of First Investors Corp.,
New York; William F. Shelley of Vance, Sanders & Co.,
Boston;
Harry J. Simonson, Jr., of National Securities & Research Corp.,
New York, and Francis S. Williams of F. Eberstadt &
Co.^New.

partner

Thursday, March 12, 1959

hedged against both deflation and
inflation.
It would be balanced,

Bingham, Walter & Hurry,
Inc., Los Angeles; Mr. Claflin and Mr. Fulton.

Robinson-Humphrey Co., Atlanta, an¬
appointments to National Committees of the Association.

and

sirable

Information—Curtis H. Bingham of

WASHINGTON, D. C.—Alexander Yearley, IV, Chairman of
the Board of Governors of the National Association of Securities

annuities,

solely itothe

;

faculties of colleges and other ;
.educational institutions, under the,r^
supervision of the.New' York Jn-

Bear, Stearns & Co.,
Weld & Co., New.;Yprk;

York; John Fountain of White,
,
Grewcpck of Carl M. Loeb, Rfioades & Co., New .York:
;
Max Halpert of Arnhold & S. Bleichrdeder, Inc., New
Yorkl^Cari;; surance De^itment.^ Since,^ikt^^>i
Marks of Carl Marks & Co., New York; and
Henry Stravitz of
time, about o0,000 college
Swiss American Corp., New York;
■■■:
sors have secured variable ahnux^^v^^
Derek

Variable Annuities-Arthur H. Haussermannof

Vance, Sand-,
T & C°.,,Boston, of
Allen J. Nix of Kiter & Co^New York, andf,
Erwin A. Steubner
Kidder, Peabody & Co., Chicago.

Continued
A.

Yearley,

James

Jacques

Glenn

from

page

^'1^.

basis.

able

, ,

■>

Prudential has^V:
naturally, made a very thoroughni
The

'vvv*:.'"

Anderson

staff of. the

study

Variable Annuities'

of variable annuities.

have
•.

•...

tested

.iWi

•

variable

the

-■*

v
■

•.

annuity

•.
! i

Oppose
,

...

poses, let us say that this might
result

total

...

tivrty, which makesspossible

variable

annuitants would have fared weli'iH.
indeed
i£
had had balanced:-;

annuity higher standard of livings/or dU—
retirement
plans, provided by , '
payments in the first year of ij all share in the results of the poin,
retribution* to fixed and&J
$1,300, in the second year $1,100, increased productivity. ^The fruits
variable annuities
The combined '
in the third year $1,200, etc. The of increased
productivity can be
i^
important point is that the annu- shared in a numberi of...
ity payments would reflect the
vestment results of the Account,

Lco?^

both before

and

after retirement.

It is evident that the two
James

G. Dern

Emmet

Whitaker

Andrew

Baird

,/A"

■'

■/'

annuity contract

types

similar

are

many respects, and especially in
the basic one of providing a life-

'PMMMtiiai
'

time income.

They.differ.;prima^

they

this

pressed in terms of a fixed niimber of units, and the doilai amount
of the annuity payments would

in one

depending

the investment experience, including capital
gains and losses, realized and unrealized, of the Variable Contract
Account, which is invested primarily in common stocks.
vary,

Robert

tohn D. McCutcheon

Cody

upon

James F. Jacques

First

Southwest

Co., Dallas, Finance;
Glenn E. Anderson of Carolina Securities
Corp., Raleigh, N. C.,
National Business Conduct; James G. Dern of Smith,
Barney &
Co., Chicago, Legislation; Henry H. Badenburger of Francis X. du
Pont & Co., New
York, is Chairman and Thomas B. MacDonald
of Blyth & Co., New
York, is Vice-Chairman of National Uniform
Practice Committee.
Emmet K. Whitaker of Davis, Skaggs & Co., San
Francisco, is
Chairman and Justin J. Stevenson, Jr., of W. E. Hutton &
Co.,
Cincinnati, is Vice-Chairman of the National Quotations Com¬

mittee; Andrew M. Baird of A. G. Becker & Co., Chicago, Infor¬
mation; Robert L. Cody of North American Securities Co., San
Francisco, Investment Companies; Henri L. Floy of Abraham &
Co., New York, is Chairman and John A. Nevins of Model, Roland
&

Stone, New York, is Vice-Chairman of Foreign Securities Com¬
mittee; and John D. McCutcheon of Jchn D. McCutcheon & Co.,
St. Louis, Variable Annuities.
Appointed as Members of the Committees were:
Executive—Mr. Anderson, Ernest W. Borkland, Jr., of
Tucker,
Anthony & R. L. Day, New York; Francis M. Brooke, Jr., of
Brooke & Co., Philadelphia; Mr.
Dern, Mr. Jacques, Allen J. Nix,
of

Riter

Co., New York; Donald L. Patterson of Boettcher &
Co., Denver; Ralph C. Sheets of Blyth & Co., New York, and
Wallace H. Fulton, NASD's Executive Director.
■
Finance—Mr. Borkland, J.

Gordon Hill of Watling, Lerchen
Co., Detroit; George H. Nusloch of Nusloch, Baudean & Smith,
Orleans; Mr. Yearley and Mr. Fulton.

New

National Business Conduct—Mr.
Baird, William H.
of
of

Claflin, III,

Tucker, Anthony & R. L. Day, Boston; Mr. Cody, Graham Jones
Cooley & Co., Hartford, Conn.; Richard Lawson of Lawson,

Levy, Williams & Stern, San Francisco; Glenn L. Milburn of
Milburn, Cochran & Co., Wichita, Kan.; Blancke Noyes of Hemp¬
hill, Noyes & Co., New York; Mr. Nusloch and Samuel S. Whittemore of Pacific Northwest

Co., Spokane.

Legislation—Ewing T. Boles of The Ohio Company, Columbus;
Mr. Hill, Mr. Jones, Mr.
Noyes, Mr. Sheets and Claude F. Turben
of Merrill, Turben &
Co., Cleveland.
National

Uniform

Practice
Edward J. Armstrong of Stein
Baltimore; George J. Denzer of The First Boston
Corp., New York; Guenther M. Philipp of Paine, Webber, Jackson
& Curtis, Chicago; Oliver J. Troster of
Troster, Singer & Co., New
York, and Ralph W. Welsh of Robert, Glendinning &
Co., Phila¬
Bros.

delphia.

National

Quotations—Francis V. Ward of H. C.
Wainwfight &
Co., Boston; Eastern Regional Chairman; Glen A. Darfler of H.
Byllesby & Co., Chicago; Midwestern Regional
Chairman;
Donald E. Summerell of Wagenseller &
Durst, Inc., Los Angeles;
Pacific Coast Regional
Chairman; John W. Turner of Eppler,

Developed?
Retirement

retired

wu0

1040

annual fixed dollar income of

-00

jnstGad^t)f

having,

)

infrequent,

Let

illustrate

,,.;(1920 to 1940)

the

problem

example. Consider an individual who was earning $3,000 a
an

when he-retired in 1940

year

fixed dollar retirement income

$1,500,

half-pay.

income

could

1940, this
have been enough

standard

Now,

ac-

living and

maintain his position in the

f>bhred

com-

how much would

this annuitant have needed in 1958
to offset the rise in the. cost of

into which the

retirement^ .iiicome

than

m0re

ofvfnaiiitain

to permit him to continue his

customed

—

contributions had been •*

total

cai"nG

Se SSSSveili;
of *'*

to:;-'

position ..in the com-^
f
v

his

munity-

-j

$4 500—or. Enough

Other:,pension plans using vari-yf.
able annuities now cover the air-|>.

Kne pilots and the employees of,,;;
prominent companies. Last;

many
year

Part

variable annuities were made
of the retirement plan for

;

Wisconsin state employees, includ¬

living and keep up with the genIn total, over 100,-,
long periods of time: is it prudent eral improvement in the ,real ing teachers.
to
establish
such
plans on the standard of living being enjoyed 000 Americans now have variable
blithe assumption that a monthly .by most of the population?
pensions.
He
income of a certain fixed number would have needed $4,500, or.three
There are three U. S. insurance
of dollars will be
satisfactory 25 times the $1,500 fixed dollar in- companies now offering variable
'° 35 years from now, because it
come. Putting it another way, his .annuity
contracts, and doing busiwould be satisfactory today/
standard of living relative to
jn
District of Columbia,
plans

cover

very

There

ily

two

are

distinct, but

confused,

economic

bp ronsidprpd

Thp firct

eas-

forces
anrl

KS6 Sg

From 1880 to 1958, the dollar lost
over 70% of its
&A
purchasing power,

From 1940 to 1958, the dollar lost
over 50% of its
purchasing power.
How

much

will

from

years

dollar

now?

buy

Many

mists foresee persistent

econo¬

moderate

inflation, on a ratchet basis—with
alternating periods of price infla¬
tion and of price stability.
I be¬
lieve I have been and continue to

be
as

vigorous and

the United States

anyone in

the need for
of

the

sume

But

would

wise

that,

stabilizing the value

dollar.

consider

outspoken

anyone

merely

-as¬

the long term, we
will have the stability that I think
we

over

should

sume

have?

that, whatever

knows whether

will

!m?o"virrS

V1"!11/?

By 1958 his fixed dollar

was cut West Virginia, Kentucky. ArkanPeno<^- sas and Noidh Dakota. '

.1S

income

conditions. From 1940 to 19o8;
decrease of 50% in the purchas¬

ing
a

ing

power

the

dollar

was

companied by an increase of 50%
in

real

wages.

This is

en0nl?non

impor-

e^en. y from

•

this day

on there is absolutely no
further increase in the cost of liv¬
ing, is there any reason to look
forward to no further improve¬
ment in our standard of living—or
is there any reason in
fairness or

the

national

well-being

opportunity

that

to participate
improvement?

do,

that

but

know

likely
one

than

equally likely,

many

observers who
is

The

second

dynamic

know

who believes deflation

bility is
the

inflation

not—and

living

economic

otherwise.

One

should

able

offer

variable

annuity contracts;
which

was

the second isrecently argued

force

our

life
insurance
companies
supervised by State Insurance De-

opportunity for parin? the increase in the

under the jurisdiction of the Se-

the

same

{hiiig.
Vm;.

sta¬

A Brief

econ-

toward an ever-increasing
standard of living. The continua-

only to be

expected, but is to be desired. Assume, if you will, no inflation, but
a
continuing increase in produc-

partments, should, in addition, be

--.curities and Exchange Commis* iion.
*;

■

HisiopT of the Variable

The-legislation

cerning the pensions of college
professors. Many prominent econ-

are
seek-,
would
(l)*if
enable any New Jersey life insur- /
ance company to establish a sepa- t.
rate Variable Contract Account,
which we would require for the i.
operation
of
variable
annuity

omists and outstanding community

contracts, and (2) provide for the

leaders participated in this study,
They concluded that the most de-

comprehensive regulation of variable
annuity contracts,
under

muit*
is

omy

tion of this force is not

matters, the real issues
obscured;
inten¬

sometimes

time

and—at

some

ticipation
standard

likely than not.
thrust

such

tionally

sider

each

in
are

as-

no one

offer

some

Undoubtedly, some have heard
something about the variable annuity debate. As is often the case

sue,

sistance to the increase in the cost

Variable Annuity

Debate All About?

issue—principally in the j.
New Jersey Legislature—is about
why whether life insurance companies ;■

retired individuals should not have
an

What Is the

ac¬

inflation, deflation, or
or
alternating periods of each?
Perhaps one approach is to con¬

believe

$1'500 was starkly inadequate and
But the natural development of
emphasized the need for another variable annuities has been badly
?orm
retirement ineoffie which hampered by the variable annuity
P
'debate.

The purpose,-then, of the vari- before the U. S. Supreme Court,
able annuity is to make possible is about whether variable annuity
have price a form of retirement income which contracts,
involving life continstability— can offer real hope for some re- gencies, and thus available only
I

must

the working population

mnrP

'increSfna

widely discussed is the

—

& Boyce,

Why Was the Variable Annuity

dividual whose plight I mentioned

that an annuitant with ■ had.
beehi; covered by a balanced 5
a taed dollar income has
Wtl|,sfetirBmentj;plan (half variable and pi
opportunity to. share in the fruits
ilait fixed) from age 45 to age' 65 ?
of rising productivity.
means

munity.
Mr, Yearley also is Chairman of the Association's Executive
Committee. Other chairmen and the committees they head:

con-

^merejntheform of last form of
lower prices.
Unloitunately, this

respect-the traditional
annuity provides a lite income
expressed in terms of a fixed
number of dollars: the variable
annuity provides a life income ex—

illy

be shaied by all

may

The

modern?, variable

idea stems from

annuity

comprehensive

study completed about 1950,

con-

ing

New

Jersey

Volume

189

5828

Number

The Commercial

and Financial Chronicle

(1211)

income per family portant that we modernize our re¬
(that is, after adjusting for price tirement plans — both individual
changes) was 2V-> times as high and group.
The future promises both suc¬
in 3958 as in 1880. What will hap¬

tract available to the

the supervision of the State Insur-. disposable

Department.
Our position on the Federal case

ance

that we believe insurance com¬

also that it will be

believe

in the best tradition of American

and

cesses

which

dangers. One of the
dangers is inflation. Again, I say

in the next generation? Sober
studies by responsible men indi¬
cate that it is quite possible that

pen

panies, are fully supervised by the
State Insurance Departments—and
we
don't think ' variable annuity

general pub¬ ^People's

lic.

enterprise, for
Americans

many

enterprising

include

variable

I
am
convinced
we
should
do annuity contract in their
plans for
contracts should
be
under
SEC by 1975, real disposable income everything in our power to restore their future retirement income.
And it must be evident that the
per family may be about $7,400— stability to our currency. But this
jurisdiction.
A Federal District
or
a
growth of almost one-third conviction is in no way incon¬ retirement benefits to be provided
Court Judge and three Court of
with
another
above
the $5,800 of 1958.
Just sistent
equally under variable annuities will be
Appeals Judges have upheld that
think what this means in terms of strong conviction:
an
individual closely linked to the future suc¬
view.
•
an

;The Prudential Insurance Com¬

believes that

pany

variable

"offer,

foe

retirement

the

life

general

Other
com¬

insist

that every insurance com¬
should offer such contracts,

pany

deems

best,

retirement.

is,

the

American

like the Prudential to

company

im¬ make the variable annuity con¬ thereby

therefore,

and

should be able to

but

one,

believe

the

nuities

varied

and in purpose.

mally

advocate

plans,

and
who

men

greater

stocks

common

who

men

enterprise and will

bring us

closer

the

TYREX* VISCOSE TIRE

an¬

Hymes, limited partner

in Dreyfus & Co., New York

passed away on Mai ih 1.

also

William Milius Adds
CLAYTON, Mo.—David D.
Lynch has become affiliated with
William Milius and Co., 101 South
Meramec.

blocking

variable

tracts, by

any means.

incredible

that

intent

seem

annuity

con¬

these

that

ness

they

can allege we
unregulated and

relatively

While

CORPORA1011

are
un¬

understand.

can

mystified
such

But

nuities.

The

they
far

reasons

offer

for their position
are
from
convincing to me.
Perhaps a word about the dif¬
ference of opinion within the life

flecting

inadequate

misunderstanding,

re¬

study of the
Some is based on fear of

subject.

development,

"new

matter

how sound. Similar fears

The net earnings of

insurance

group

—

American Viscose Corporation

the very

re¬

compared with $ 18,369,000

own

depressed by non-recurring

expenses

equal to

During the

year a

decreased

our

was

1957; another

was a

normally demand

huge quantities

the

annuity
as

contract

well

fear

under¬
a

vari¬
go

may

up—and that this

reflect, upon the insurance
We believe that annu¬

may

industry.

itants will understand

the

nature

of the contract—and that it would

reflect

badly

the insurance in¬

dustry if we did nothing to recog¬
nize the problem and modernize
our retirment plans.

pulp

was

increased to its full capacity

175,000 tons per year.

of
The

Avisco fibers.

have

down

rate of

slowdown in homc-

annuitants

not

rayon

furnishing and redecorating both of which

may

able

tion of wood

with 6,100,000 for

that

Concurrently with the improvement of the

business in the last half of 1958 Ketchikan's produc¬

the decline in the production of

automobiles: 4,200,000, compared

of $16.5 million in reducing its

bonds, its term loans and its sub¬

ordinated notes.

primary

recession which affected

One

markets.

First Mortgage

sharply

tion

will

also made payments

significant change took place.

six months of 1958, so strongly that records

based

Chemstrand paid its first dividend of $5 million and

5% to $217

were

equipment in the United States and advanced $8
Chemstrand, Limited. In December

million to

million from $228 million in 1957.

Earnings during the first six months

million for plant

Chemstrand expended $11.4 million for new plant
and

$.21 per share incident to closing the Roanoke rayon
textile yarn plant. Sales declined about

over $18

phane facilities.

dividend, compared with $1.65 in 1957. These earnings
were

expended

including the construction of Marcus Hook cello¬

operations

$1.36 per share, including Chemstrand's first

were

EXPANSION AND IMPROVEMENT

additions, replacements and modernization in 1958,

$3.60 per share for 1957.

Earnings from American Viscose's

family policy. Some of the
opposition seems to be based on
unreasoning objection to common
stocks per sc. Some of this opposi¬

stand that payments under

staple and yarns now
is reinforcement of paper.

rayon

Medical and surgical goods are con¬

American Viscose

in 1958 amounted to $ 14,459,000 or $2.83 per share as

cent

SOUND

and,its equity in those of 50 percent owned companies

were ex¬

pressed in the early days of many
of
the
insurance
products that
are
commonplace today — like

the

suming large quantities of rayon staple. V

insurance industry is also in order..
Some of this opposition we believe
is based

promise for

and rubber.

stock

the need for get¬
ting a broader spread of share
ownership, and the advantages of
all forms of stock purchase plans;
but are opposed to variable an¬

some

yarn,

Rayon fabrics are also being used to reinforce plastics

the country,

introduction

fibers.

consumption of rayon textile

loom. One important one

exchanges, who preach as
gospel the desirability of increas¬
ing the volume of equity capital

rayon

ever-changing apparel styles have caused

hold great

by some of the others,
representatives
of
the

blend of cotton and

Corporation has accelerated the development and
marketing of fibers in other areas. New uses which

are

decrease in the

taxed.

Perhaps some of them, es¬
pecially some mutual fund men,
may be concerned about the com¬
ing of vigorous competition. This

Cotron,

MOUNTING INDUSTRIAL USES

know

men

little about the insurance busi¬

m
m

We find it

are

almost all of the 1959 model automobiles.

COTRON**

VISCOSE

Another important development was the

•

industry

producers. This outstanding product is receiving

used

1958

common

stocks in any retirement plans.
The opposition outside the in¬
surance

viscose

promoted. Tires made with Tyrex viscose cord

insurance'

any

YARN

wide and favorable publicity and is being vigorously

retirement

some

deplore

yarn

But

earnings rallied sharply in the last

posted by the companies in which

were

pany.

Net

Ketchikan Pulp Com¬

1958

the

Net

Corporation sold the

greatest volume of cellophane in.its his¬

new

Earnings

most of it used by the packaging

1958 of

$227,600,000
8,400,000

1.36(a)

1.65

1.50

2.00

9,800,000

$ 10,000,000

1.92

1.95

2.83

3.60

Earnings

Equity in Chemstrand and Ketchikan

YEAR

industry. The introduction in

1957

$217,000,000
6,900,000(a)

Dividends Paid

CELLOPHANE

were:

1958

Per Share

And this high rate is continuing

RECORD

tory;

companies

Corporation

Net Sales

in 1959.

During

earnings of associated

American Viscose

50% ownership—The Chemstrand

Corporation and

Corporation's earnings for 1958 and its equity

the

Per American Viscose Share

Combined earnings of American Viscose
and equity in earnings of Chemstrand
and Ketchikan

polymer coated cellophane for wrap¬

Earnings

(a) includes Chemstrand dividend amounting to $2,305,000 or $.45 per share after taxes.

ping fresh meats was successful beyond
American

Enterprise and

Variable Annuities

all

The American insurance indus¬

itself on being enter¬
prising and on offering new prod¬
ucts

change calls for them.

observer

astute

the

expectations.

try prides

One

American

NEW

PRODUCTS KEY

New and
1958.

FUTURE

improved products

These

are

looked

were

upon

American

brought forth in

with confidence

insurance for the future.

Viscose

shareholders

paid
1958

dividends of $7,644,000
at

$1.50

per

share.

December 31, 1958, there were 5,096,491 capital

outstanding owned by approximately 24,000shareholders.

insurance scene has suggested that

America

has

made

two

funda¬

mental contributions to life insur¬
ance:

group*

insurance

able annuities.
consonant

with

and

emphasis

partici¬

pation.
I mentioned earlier that the real

Tyrex is the certification mark of Tyrex Inc. for viscose tire yarn and cord.
Cotron is the trademark of A VC for fabrics made of cotton and Avisco rayon.

are

American enterprise on mass pro¬

duction, distribution, and

* *

vari¬

Note how both
the

AMERICAN

VISCOSE

1617 PENNSYLVANIA

CORPORATION

BLVD., PHILADELPHIA, PA.

City,

]

(Special to The Financial Chronicle)

tire yarn, a joint development of the cellulosic tire

nor¬

use

Vari¬

Richard Hymes
Richard

The most newsworthy development was Tyrex

composition

Among them are

investment

some

fixed
dollar

supplement such

product

!Pie opposition to variable

for

fixed

coverages with Prudential
able Annuity Contracts. *

merest

beginning.
Variable
annuities, made generally avail¬
dition of American enterprise for ablej will give more people a stake

of the leisure of

need

annuities

life insurance policies — and we
will go on stressing them. But we
also think the American public

We believe it is in the best tra¬

should be available for those who

annuity coverage of 50,000 college
professors and many Wisconsin
public school teachers, and that is

want it.

enterprise,

continued

dollar

that every person should have

American

the

economic growth we do want.

nity for the enjoyment, as each of

panies support this view. We don't

standard of living if we have the

One way will
surely be the increased opportu¬

insurance

income

chance of sharing in the increased

self in many ways.

by a

company.

life

cess

heading.
In closing, I want to make one
quite clear: we believe in

point

that

only

public

insurance

prominent

believe.

provide for his

Capitalism" toward
enterprise
is

American

come

responsibility for us.
since such a contract involves life V ■ Our increasing standard of liv¬
contingencies, it can be offered ing will undoubtedly manifest it-,

Furthermore,

be able to

will
plan that reflected by the results of broad
automatically—and the at least offers a chance of resist¬ common stock
ownership
in
manageourselves will ing the effects of the increased America's business and industry
affect this potential—but it is a cost of living if we have the infla¬ Just consider the long-range sig
challenging opportunity as well as tion wc don't want; and offers a nificance of the present variable
not

way

and one which-would
for the public to have.

good

standard of living.

This growth of our economy

an¬

nuity contract is a desirable prod¬
uct for a life insurance' company
to

increasing

should

AVISCO

{

The Commercial and Financial Chronicle

(1212)

Continued from first page

See It
We

irig these notions. Such programs as these were not new,
but it remained for the New Deal to give them real rigor.

By the time World War II got under way, Franklin Roose¬
velt was saying in effect that it was all but immoral for

little

Continued

income.

yield from this main reliance can be
greatly increased by any sort of changes in rates. Mean¬
while, it has become clear that income taxes laid upon
corporations are about as steep as is economically feasible.
All this seems to indicate clearly that additional
revenue, if it must be found, has to be sought elsewhere,
and other types of taxes bear more directly and visibly
upon the rank and file. Thus the demand that larger public
expenditures be financed by additional tax collections has
a meaning rather different from that which was attached
to such a demand when it was still possible to go further
believe that

the

robbing rich Paul to pay poor Peter. Thus we find
insistent demand for larger outlays and great reluctance
to increase tax burdens. This state of affairs or the prac¬

parts
of tiic country as well as in the national capital. It is one
of the reasons for the stubborn insistence on the part of
the New Dealers and kindred spirits that need for balanc¬
ing outgo with income is to be regarded as an ancient
myth and a hoary fallacy.
tical results of it

are now

meeting the

eye

many

But the

disposition to permit public debt to increase
indefinitely is also running into some of the hard facts of
economic iife. The enormous flow of municipal securities,

obligations as well as others, has taken the cost of
such borrowings exceptionally high levels. The remaining
supply of funds seeking such outlets is clearly not un¬
limited. And, of course, in the degree that sale of tax ex¬
empt municipals draws funds from other types of invest¬
ment the hope of financing largesse through individual
income taxes is reduced. All in all, the investing public
has grown somewhat uneasy about the volume of munici¬
pal borrowing that has already been done, and even the
politicians are uncertain about pushing such borrowing to
revenue

further limits.
'

Treasury Also
ties

the United ^States

Treasury free from difficul¬

arising out of the. enormous borrowings in the past
prospect of further large borrowing to result from

and the
current

Current

deficits.

interest

costs

and

the

talk

possible need for raising the legal limit on rates are a far
cry from the day when government obligations brought
almost no yield, and the Treasury was able to borrow
almost

Hill is

from

without
unaware

—

cost.

Not

even

the politician

Capitol

of the

of the nation under

in the investment

problems raised by the fiscal needs
existing conditions. Of course, no one
market really questions the goodness

touch
trial

off such a spree of indus¬
production and employment
that the resulting increase in the

And since

tax

discuss

it will

yield will balance the national
and bury the spectre of

budget

inflation forever in its grave.

if there

should

flation

duck

any validity
argument, in¬

were

convenient

that

many

been

have

ago;

years

dead

for

in¬

—

cluding World War II and Korea
Federal

—our

has

Government

operated in the red for 23 out of
the

last

debt

28
at

all-time

about

are

Our national
high, and

years.
an

raise

the

debt

limit again for the fourth time in
13 years.
And our interest pay¬
ments

alone,

amount

That is
eral

that debt,

billion

$7J/2

now
year.

than the total Fed¬

of these industries

one

steelmaking, I should like to
this
aspect of inflation
briefly.
In recent years, our nation has
witnessed
a
new
phenomenon
which is known among economists
as "cost-push inflation" and which
made its appearance simultane¬
ously with the growth of the
powerful
industry-wide
unions
that we have today.
Cost-push inflation occurs when
wages, and other production costs,
are pushed up more rapidly than
national productive efficiency in¬
creases. This, in turn, forces prices
to rise where competition permits,
and
diminishes
the
purchasing
power of the dollar accordingly.
Where competition prevents the

1938; and it
amounts to $43 apiece for every .recovery: of increased costs
man,
woman
and
child in our through higher prices, the pro¬
Budget

was

ducer

land!
Nor have our states

been back¬
testing of this theory.

ward in the

Seven years ago, 19 of them were
more than their general
could cover.
In 1957,

spending
revenues

that

number had

increased

29.

ultimately

There is

ness.

this spiral

out of busi¬

goes

other alternative

of wages, costs and

prices.
People in the newspaper indus¬
try tell me that rising costs have
been largely responsible for the

So going

disappearance

newspaper in the United
the past 10 years.

into the red has become
popular each year; and the

net result of this

inflationary

cure

daily
States in

217

some

there are many costs, of
which enter into the pro¬
to less than 50 cents in the course duction process, but by far the
most important of these is the cost
of the past 20 years.
of employment.
If we take the
Still the quaint belief persists
entire
production process from
that the way to treat this form of
the raw materials right through
economic
intoxication is to ad¬
to the finished product, employ¬
minister
ever-increasing quanti¬

for

inflation

the

value

ties

reduce

course,

been

of the intoxicant to

the hap¬
victim; and while this may
make everything look rosy, tem¬
porarily, the result is inevitably
fatal.
From the ancient days of
Greece and Rome, inflation has
brought collapse not only to na¬
tion
after nation, but to whole

less

civilizations.
what

saw

Poland,

did

Ger¬

Russia,

and

Hungary
Austria after World War I;
now, in France — where the

cost

and

than

living is 37 times greater
was just
32 years ago—

Antoine

Pinay,

the

former Pre¬

mier who has been put in

charge
Treasury by President de

the

and

indirect—

account for 75 to 80% of all costs.
That

that

means

employment

unearned rise

has

costs

from

four

times

flationary effect

mind,

let

look

for

the wage picture that
Of the major wage
contracts on file with the Depart¬
moment at
confronts

us.

ernment has grown

used to paying.

Of course, there are

always those

easy reasoners

glibly place the blame for this state of affairs
authorities/ and who insist that

Federal Reserve
tion

could

upon

who

the

the situa¬

easily cured by an easier money policy.
valid objections to such a conclusion. It
is, however, hardly necessary to go further than the status

There
of

the

which

are

many

dollar in
we

international markets,

and the rate at

have lost gold

during the past year or more.
We should hardly be warranted in
calling all this a "flight
from the dollar" as some have been inclined to
do, but
it is evident
enough that our price level resulting from the
easy money policies of the past (as well as other related
factors) have tended to price us out of
foreign markets,
and that artificially
depressed rates of interest when effort
was being made to end the recession
by soft money policies
have led foreign holders to leave our shores with their
balances.

But One

Remedy

For all this there is but

one
remedy. That is to trim
public expenditures to the point where they can be covered
by revenues raised without undue burden upon the econo-

my.

That is to

say, an

elimination of deficit financing not

interesting

and

offer:

tige abroad."
our

workers, and among the many
unions involved, one of the largest
and most powerful is the Steelworkers'

Union

with

members.

wishful thinking to the

cannot spend ourselves into
prosperity
or
inflate
ourselves
into a position ofi international se¬
curity and leadership. We cannot
go on forever getting more and
more for producing less and less.
And we merely delude ourselves
we

seek

increase

con¬

purchasing power by add¬
ing more dollars to our pay en¬
velopes, on the one hand, and by
ignoring the shrinking value of
sumer

those dollars

the other.

Ulti¬

the inflated dollar be¬
worthless, and whether we
double, triple or quadruple noth¬
ing, the result is still nothing.

mately,
comes

about

Its

114

present

year,
unless we can
.prevent it, the probability is that
we
shall go orbiting off on an¬

other great round of
a

come
up
with de¬
"package" embracing
higher wages and benefits; but the
Steel Union isn't talking in terms
of a mere package — it's talking

inflation,

dozen major industries

make wage demands that

about
In

has

billion dollar bundle!

advertisements

the
been

running

which

the

news¬

this union has been tell¬
how an extra billion dol¬
in the pockets of the

papers,

ing

lars,
steelworkers,

this occasion.

discuss

exceed

two

develop during the year:
Profits

Examines Productivity and
"First

will be told that these

demands can be met
productivity, and
thus will not be inflationary. And
second we will be told that the
new" wage

out of increased

real

of this cost-push

cause

tion is to be found—not in

infla¬
rising

—- but in exorbitant indus¬
profits. Let's look at these

wages

trial

statements
In the

little.
of

case

■;

productivity,

must remember that it is not, by
same thing as out¬
hour. In any one
industry, for example,
increase
in output per man

the

any means,

put

per

man

company or
an

hour may be completely offset by
the increased cost of machines or

that

materials

made

the

higher

output possible. So when we talk
in terms of output per man hour

exaggerating

usually

are

greatly any increase in real pro¬
ductivity that may have occurred.
must

remember

also

that

productivity—as an offsetting fac¬
tor to inflationary wage increases
—cannot be measured

basis

term

short-

month, a
few months, or even a few years.
For
example if we take the
covering

records of the American Iron and
Steel

Institute,V and do a little
arithmetic, we find that in 1956
year in which our present
steel wage agreement was signed

—the

than 7%.

•

That, of course, was due prima¬
rily to the sharp drop in steel pro¬
duction during a period of reces¬
-

will

increase

the

hour will

industry, the moving pic¬

ture houses, and

the homebuilders
of America and so on, ad infini¬
tum. So it is going to do the whole
nation

that

great favor by getting
dollar bundle for its

billion

members.

And that sounds just dandy, but

ers?

Why not do the same for all

the

ployed

thus rise
In

million

gainfully

em¬

America,

and

people

the ante to $52

billion?

why not go on a real
inflationary bender while we're at
short,

likewise.

union

steel

if the

seeks

justify its
wage demands by claiming some
spectacular rise in output per man
hour during the coming months,
it may fool a number of people;
that

but

mands
The

will

one

not

make

its

de¬

whit less inflationary.

truth

that
hourly
employment costs in the steel in¬
dustry have gone up an average
of 7.6%
per
year
for 17 solid
years.
And in contrast, the re¬
ports of the Department of Laborshow that output per man hourhas risen by only 2.6% per year.

from

1940

And,
using

is, of
through

course,

1957,

I pointed
"output
per

overstates

the

before,
hour"
productivity
out

man

real

gains.

sales and the profits of the auto¬
mobile

so selfish about it? Why
limit it to 1*4 million steelwork¬

this

unions in

will

why be

Probability of Orbiting
Yet

unions

mands for

contrary, therefore, we know that

when

want

Labor, 154 will come up sion; and now that the demand
negotiation this year. These for steel is rising rapidly, it may
contracts cover about 4^ million be expected that output per man

rupts

All

spare

for

million

of all classes—even national pres¬

time than any

ment of

"Inflation," says M. Pinay, "cor¬ three-year agreement with the
everything — a balanced steel-producing companies expires
budget, investments, job security, on June 30.
social legislation, the moral health
Now presumably most of these

this

of us can
But I do
points that
will be hotly debated in the press,
no
doubt, as the negotiations in
steel and all these other industries
deal

amounts—so far, at least, as can now be foreseen—but
only at substantially higher rates than the Federal Gov¬

has

That

now.

purpose

wage case here
would take a great

steel

Gaulle,

expert comment to

not

much in¬ 4-the industry turned out consid¬
correspond-! erably'more steel per thousand
ing rise in all the remaining costs man hours than it did last year.
of production put together.
> v- Over that period, in fact, output
So
bearing this all-important per man hour declined by more

three

fact
We
many,

costs—direct

ment

of the credit of the United States. The national
govern¬
ment will always be able to borrow,
and borrow in

large

the

argue

Now

American dollar

has

of the

billion dollars in new

that!
Now

But

speaks

advertisements,

it is describing the situa¬
tion more accurately and more
prophetically, perhaps, than it had
really intended.
For that is pre¬
cisely what it would be in the
end
new money, fresh off the
printing press and worth exactly

any conceivably-possible increase
in national productive efficiency.

of
in

money,

enough,

liberally

money

Unhappily for all of us, how¬

its

page

store'— not even in these days
inflation. And when the union,

for the collection of still higher taxes on

or no room

Nor

■

ever/you don't find a billion dol¬
lar bundle in a five-and-ten cent

The Steel Industry and
A "Billion Dollar Bundle"

over

Proceeds from these taxes move up and
down with the state of business, but few there are who
such

Thursday, March 12, 1959

has about

into the peace years. At any rate, the
rates at which individual incomes are taxed today leave
carried

while it lasts!

phases of the recession to linger.

of more than
$25,000 per year. These were war times, but all too much
of the spirit and the letter of the wartime income tax laws
were

It. should be lots of fund

it?,

by trying to find more funds, but by doing what any
prudent individual always does as a matter of coursetrim expenditures to fit our pocketbook. And the need for
applying this remedy is the more urgent by reason of the
critical international situation and the tendency of certain

to be permitted to retain an income

any man

♦So

there

you

against 2.6%
17

have

it:

The difference
inflation.

years.

wage

Now let's take
profits.
_

7.6%

cent, each year for

spelled

look at those

; The argument here is that ris¬
ing corporate profits; rather than

wages,
are
responsible for the/
ever-mounting cost of living. And :
the.trouble With this argument is

that corporate profits

rising
twice

for.

haven't been>
fact, only -

years." In

during the .present decade'

have the after-tax profits of cor¬

porations

as a

whole been

high

Volume

189

Number

5828

The Commercial and Financial Chronicle

(1213)

In all other
lower and'Gov¬
ernment
reports show ' that last
year * they
were
$5 ' billion less
than they were in 1950.
' - /'

frequently—from the Government

quirements.

itself.

000

/The same Go Vermont Reports
also show, however, that eoinpeii-

stop wage inflation. Neither can
the Government, I think, under

they

in 1950.

were

they

years

were

"Settle," they tell us; and settle
must.

from the Chi¬

cago, Burlington & Quincy,

the

Dividends of $6,200,-

received

were

48.6^

controlled, and approximately $1,200,000 interest income from the

companies alone cannot

Spokane,
which

Portland & Seattle
jointly
owned
with

Northern Pacific.
No
dividends
employees//throughout present circumstances. Conceiv¬
Great Northern Railway
have
been
it might legislate a more
received
from
the
the nation, has risen by $100 bil¬ ably
Great Northern
lion during these same nine'years. equal distribution of power at the
Railway was tribute approximately one-third wholly-owned Western Fruit Ex¬
So
I
leave
it to you:
whence bargaining table, but I cherish able in 1958 to show an earnings of total freight revenues. How¬ press since 1943, even though the
gain over the preceding year due ever, in recent years manufac¬ latter's operations are profitable
conieth this cost-push inflation? little hope that it will do so. Fail¬
it could resort to the primarily to a spurt in income in tured products and forest products and continue to expand.
I should add, however, chat this ing that,
A have show an upturn, indicating
decline in corporate profits may peace-time imposition of wage and the final months of the year.
On Dec. 31, 1958 cash and cash
have contributed, in one respect, price controls; but those have been large part of the improvement in the new industries attracted to the
equivalents
totalled
$61,937,000,
to the inflationary effect of the tried in nation after nation for final figures was from improved territory and increased building
while total liabilities were $38,of

sation

increases; because, you see,

wage

than 2,000

years,

and never

cost

control.

activity.

breakdown

shows

671,000.

The road's traffic fell 21% un¬ manufactures
contributed
about
in which yet have they stopped inflation.
these
corporate profits can be They have only stopped produc¬ der 1957 but revenues were off 30% of revenues, forest products
tion and progress.
14% and mine products 20%. The
only 8.6%.
Most of the decline
spent. They all go to pay for the
in freight traffic was caused by attraction of new business along
use and improvement of the tools
Only Public Opinion
a drop of 46% in low-rated iron ore
the
line
indicates
the
growth
and other capital facilities neces¬
Yet there is, I believe, one great, traffic.
Operating expenses were prospects for the future. These
sary to production.
And had the
irresistible force in this country cut 10.1%, absorbing 90% of the new facilities have been devel¬
profits of all corporations risen

there

only

one

they should

have,

during this

period,- there is no doubt that
many
of the cost-reducing im¬
provements dhat American indus¬
try is still waiting to lhake in its
facilities would have already been
installed and would now be yield¬

that
its

stop

can

source.

inflation

wage

That

the

force

at
of

decline

rental

revenue.

charges

were

Equipment
lower but

opinion. And the
power to create an informed pub¬ interest costs were higher. Despite
lic opinion is the power of the these factors, Great Northern was
able to show net income of $4.52
press.
Now I know that the issues in a share as compared with $4.38
in 1957.
ing the fruits of increased effi¬ any wage negotiation are many
and complex. I also know that a
The strict control over expenses
ciency. '
'
Se when we hear union leaders wage negotiation—even in a na¬ demonstrated
in
the
closing
tionwide industry—is pretty small months of last
year, indicate that
potatoes, as news goes, these days, earnings in at least the first half
and that there is very little space of this
;let; us
year should make excellent

mntnnbjA/' on.^ Tittle eco¬

nomic

maxim: ;/that / less

profit

means

fewer

-4- .of

poorer

tools—of

turnrWiMiVk'^.ThsK-" officiencv.

'in

\
fewer,
as.

fools

production ;:qiid/that this

add
jobs.^ib rs^fust/as simple

■'

that..y.A/'^.;/w/^./:>vV'/v!".:

f At 'The '• outsetv of" this "Tpaper

lems with you because you

►

could
something about them.
As you see, however, they are not
my problems alone.
They are the
problems of all of us, of the men
in the mines and the mills, and of
union members and leaders alike;
for
no
matter
what
economic
do

may

group

Ire, we are a nation of 175 million
and each one of us has
a vital stake in the
task of pro¬

"consumers

power
4 it

which

purchasing

of all of us/

there

consumer

is one banner under
should all unite, I sup¬
.

it would read,something like

pose

this: Hold that Ime<m '59!

single group of us can do it
We who represent the steel

alone.

have fully and fairly dis¬
charged their reportorial duties
when they give both sides of the
story. They tell their readers that
the union says its wage demands

As-

further

move

reduce

traffic.
will

unlikely that this
forthcoming for some

negotiating with the union and is
group

when

of companies have joined

together for bargaining purposes.

representatives of
satisfied when
present steel contracts expire,
the

Unless

the union are fully

they

strike the

can

close down

industry.
five times

plants

and

about 90% of the steel

And they have done so
in the last 13 years.

Pressures

During A

Well

matters

one

cost

see,

has

gone

great

industries
our

and

reflected

are

Ridgeway Boulevard

management of Calvin

Mclntyre.

traffic, which provides-

tonnage, declined 46.4%
pulling total traffic down 21%,.
although aggregate revenues, as.

Brown, Madeira Office

previously

stated,

dropped 8.6%/.

Grain traffic again played an im¬

portant part in Great Northern's

maintenance expenses, the heavy

fortunes.

roadway program of recent years

since

branch

office -at

Boulevard

under

Cleland C.

2304

the

Wilson

direction o£

Sibley.

by the large crops harvested and'

will

ARLINGTON, Va.—Brown,
Madeira & Company has opened a

now

stretched

out

for

This traffic

there

large

swelled

was

carryover,,

Joins Dempsey-Tegeler
/ LOS ANGELES, Calif.—Ray W.
Caldwell

has joined the staff oi
Dempsey-Tegeler & Co., 210 West

Seventh Street.

was

taxes, and so
indirect

employment
costs
soon mounts up to an equal sum.
So as a kind of rough
rule of
our

Annual Report

copy

of the

of the press have the

flicting statements on both sides,
to
check the figures for them¬
selves, and to tell their readers
of their findings.
Unless the public can be fully
and truthfully informed, it looks
as if v/e may have another billion
dollar
tion

bundle

our

per

Net Income

UP 5%

Operating Revenues

UP 7%

opportunity

to the source of these con¬

for 1958

showing

Earnings

Dividends paid

for

55 Consecutive years

of unwanted infla¬

national

doorstep

—

for keeps.

Central' Hudson Gas & Electric Corp.

With Slayton Co.
AKRON, Ohio
ment

Louis

—

The appoint¬

Heinrich

sales

Mr. Heinrich had recently con¬
gin to run out of steel. Thus they
cluded an eight-year association
face a shutdown of their plants
with Comntierce Clearing House,
and a layoff of their employees.
Inc. as its sales representative for
The flow of steel needed for de¬
Akron and six surrounding
fense is shut off too; and so the

counties.

the companies to
Previous to that, he had spent
reaches
a
point
over 20 years in the radio broad¬
'where it is difficult.to withstand
any
longer. Jt_ £omes;irom opr casting field in Cleveland and
Akron./
Digitized customers, from the public, and—
for FRASER

Poughkeepsie, New York

Principal Office
"
..

V,--.s »•

„

formerly

with Hill Richards & Co.

goods,
services,
on, the increase in

purchased

of the^St. Louis mutual fund dis¬
for a few
customers be¬ tributing firm.

office at 1106
under the

fic.

deal,

pressure upon
settle
finally

and

$15 million a year to the indus¬
try's cost of making steel. And in
saying that, I am referring only to
the direct employment cost.
As
similar wage boosts occur in other

Strike

companies have taken
costly strikes in an effort to

weeks, many of our

„

Allyn Branch

help check the rising tide of wage& Co.
cost inflation; but they have never representative of Slayton
succeeded in doing so; for a strike Inc., for north central and north
eastern Ohio has been announced
in steel is not a weapon that is
aimed at the
companies alone. by Hilton H. Slayton, President
After

PERE, Wis. —A. C. Allyn
Company has opened a branch

increase of
little cent per hour in the
of employment will add some

because, you

The steel
these

ties to handle this additional traf¬

ore

continue

New A. C.

time, but the road has the facili¬

; Iron
heavy

will

maintained.

Protesting?

Much

Too

is concentrated

still likely to be true even

dividend

The opening of the St. Lawrence
Seaway has other eventual impli¬
cations.
This eventually should
develop long haul cross-country

send

$30 million
unions, the power of increased costs to add to the
on the labor
inflation spiral.
side normally outweighs by a con¬
But it lies within the power of
siderable margin that on the man¬
the press to determine what the
agement side. This is especially exact facts are. Men and women
true when any single company is

our

with
a
year
ago.
Costs are not expected to rise as
quickly as the upturn in traffic.

oped at both ends of the line.

cost X cents per hour; but three or four
years. This will take these loadings should hold up well
companies claim that it will some of the burden from this this
year.*
/. v. /
cost a good many cents more per
year's
earnings
and' the
road
The road had, as usual, other
hour. So the reader, who is often should
report more normal: main¬ large
income
which
in
1958
a
pretty busy fellow himself, is tenance ratios.
amounted to $11,021,000 or more
likely to conclude that both sides
Agricultural products still con¬ than annual fixed interest re¬
are protesting too much, and that
it really doesn't matter much be¬
cause they're only haggling
over
a few pennies anyway.
But which side is protesting too
much?
And just how much does
we
it matter?
you a

industry-wide

fixed

but

part,

and

will

are going to do our full
in saying that, let me thumb, we may say that each one
remind you that at the American
cent increase in steel wages and
bargaining table, in these days of benefits means some

/companies

that

taxes

comparisons

it is true, moreover, that news¬

inter¬

ests of these groups may seem

it.

papers

belong to, and no

matter what the conflicting

tecting the

be given to

can

income

said I wanted to discuss my prob¬

really

that

Federal

the
end
of
1957.
Depreciation
charges will exceed total debt duo
in one year,
plus sinking fund
requirements by some $4,000,000/
In view of these factors, plus im¬
proved earnings, observers are oi
the opinion the 75 cents quarterly

the

/ --Problems At^e JNratioiiwide
■

informed public

Net working capital was
against $61,399,000 at

$68,057,000

way

The Commercial and Financial Chronicle

(1214)

Continued

McDowell & MacDonald

Bank and Insurance Stocks

Join F. L. Putnam
Mass.

BOSTON,
McDowell

Lewis

—

Vernon

and

One of the better ways of investing for the person of modest
is via the investment trust; and one of the more successful

of these has

Ex¬

Stock

The

department in
association
J.

John

with

Viceand

President

Manager, and
r ■
Joseph
A.
Lewis D. McDowell
Buonomo, Assistant Manager.
Mr.
McDowell
was
formerly
.

Chas.

which

with

Co.,

for

trader

stock

Day &

MacDonald

Mr.

Conn.

Connecticut

broad

experience

long

—

resident

securi¬

the

business, W. Howard Stevens
has been appointed resident man¬
of Shearson, Hammill & Co.'s

branch office at
He succeeds

Lewis

Street.

the late J. Bruce M.

Toombs.
Mr. Stevens has been

managing
Shearson, Hammill & Co.'s down¬
town New York boardroom at 115

and served for some
years in the firm's investment ad¬
visory department.
Y
Prior to joining Shearson, Ham¬
mill
&
Co.,
Mr.
Stevens had
served in the New York syndi¬
Broadway

cate

Co,

department of R. L. Day &
and as a bond specialist for

the firm of Charles M. Newcombe

and Company.

lor

the

Associates
office

has

opened
West

383

State

Street, Trenton, N. J. under the
management of J. Stanley Husid,
and at 41
North Eighth
Street,
Allentown, Pa. under the direction

because

Parke

the

husband

need

funds

year

the

all-time high)

from the increases in

came

new

accounts and

Probably

much

the

success

the

trust

comes

from

the

dollar-averaging that is one of its features; to quote the fund's
accomplished by investment
principal and increment for the investor at the current acquisi¬
tion values, thus averaging the cost of his total equity in the fund."
literature, "Investment Averaging

—

effect, the trust dollar-averages in its purchases of the under¬
lying stocks, too, for it does its buying regularly on every third
business day. Another source of investment is realized gains from
time to time, and each investor's proportionate share is credited
to him automatically.
The average age of the insurance companies whose shares
make up the portfolio is over 69 years; and the eligible insurance
companies have, on average, a continuous dividend record of over
42 years. As in most well managed trusts, the investor's interest
in the fund is protected by the use of a trustee, a large bank in
this case, with which all funds and securities are lodged.
Par¬
ticipations may be purchased as single payments, or accumulative
plans under which periodic payments are made by the investor
to build up his account.
The trust's investment in any one in¬
surance company's
stock is limited to 5% of the trust's assets;
and the trust may not hold more than 10% of the stock of any

underlying insurance companies.

a list of about 88 stocks.
A company
eligible must have been engaged in business for at least
fifteen years; have assets at minimum of $7,000,000; and have
paid dividends in each of the five years immediately preceding

the

date

its

The load

what

becoming eligible.

and

sponsor's and trustee's fees

wide range of open-end trusts assess

Statement

Condition

Financial

—

approximately
the participant.
are

December

31,

1958

—ASSETS—

Schmidt,

—

has

opened

$355,654,695

Cash Dividends due Trust Fund
Cash Held

...

by Trustee

-—-

management

1,201,839
529,058

$357,385,692
—LIABILITIES—

of Leroy

NATIONAL AND GWNDLAYS

Participating Agreements
Due to Sponsor Company
Due to Corporate Trustee.—
Federal

Y BANK LIMITED

Matured

.___

$390,563
107,627
14,608
1,556

Amalgamating National Bank of India Ltd.
and Grindlays Bank Ltd.

$514,354
Investors'

Head Office.

356,871^238

Equity

The

13 ST. JAMES'S SQUARE, S.W.I
54 PARLIAMENT STREET, S.W.I

There

portfolio is indeed

are

amounts

stocks

are

the

Shipping; and Travel Depts.: 9 Tufton St., S.W.I
Dept.:

Bankers

Parliament

Street,

S.W.I

the Government in. aden, kenya.

uganda. zanzibar * somaliland protectorate

Branches in:
india, pakistan, ceylon, burma, kenya,
tanganyika, zanzibar, uganda,
aden, somaliland protectoratb,
northern and southern rhodesia.

Earnings Comparison

Leading Bank

Stocks Outside NYC
Bulletin

Request

Laird, Bissell & Meeds
Members

New

York Stock

Members American

gO BROADWAY.

Stock

NEW

Telephone: BArclay
Bell
L.

Teletype—NT

Gibbs,

Exchange
Exchange

YORK

5, N. T.

7-3500

1-1248-49

Manager Trading Dept.)

^oeHalists

Bank

Stocks

the

$357,385,692
impressive aggregation of stocks.

trust's

list

and

among

the

larger

following:

Gold

ing 5.4% (The Commercial & Fi¬
nancial Chronicle, July 24, 1958).
the stock market then cor¬

Cost

Recent Market

82,475 Aetna Casualty & Surety
100,000 Aetna Insurance
68,425 Aetna Life Insurance

$8,869,000 $14,887,000
6,662,000
7,813,000
8,023,000
16,525,000
414,900 American of Newark
9,074,000
11,332,000
121,061 American National
977,000
1,256,000
120,000 American Surety
2,188,000
2,490,000
100,000 Boston Insurance
3,537,000
3,450,000
147,400 Continental Casualty
7,388,000
16,288,000
266,590 Continental Insurance
9,413,000
16,595,000
175,010 Federal Insurance
4,620,000
10,566,000
77,990 Fidelity Phenix Fire___
3,663,000
5,245,000
167,820 Fireman's Fund Insurance
9,558,000
9,901,000
116,800 Glens Falls Insurance
3,703,000
4,059,000
208,355 Great American Insurance
6,700,000
9,571,000
306,970 Home Insurance
12,898,000
14,178,000
75,460 Hartford Fire
10,671,000
14,111,000
190,000 Maryland Casualty
x
6,983,000.
7,756,000
108,160 Ohio Casualty
1,931,000
2,704,000
76,160 Reliance Insurance
2,884,000
3,903,000
150,050 St. Paul Fire & Marine
5,271.000
9.047,000
116,050 Springfield Fire & Marine
3,390,000
4,004,000
154,175 Travelers Insurance
7,775,000
14,685,000
171,495 United States Fidelity & Guaranty
9,136,000
14,020,000
While, of course, these are among the larger holdings, they
are

but 23 of

Here is

total list of 88 companies.

growth investment vehicle in

can

effective

cluding warfare. General warfare
current

and Sears' Robert Wood?

essential industry.

closes

Sears is

Allied Stores at 42 with its 7 %

indicated return
rival

then related

was

Federal

Department

that

yield

ficiary of

takes

now

Rand

despite

—

the

Sperry

indicated

•

yield differential of 21/2%
favoring Sperry Rand.
Recall
of

comparisons

General

Electric

still

premature and unwarranted!

Profit-Making Companies
'

tjow do.those exceptional mah-^
directing
businesses
whose
shares denote
claims
on
specialized technical services or
popular consumer items keep
agements

anticipated profits geared to their
soaring market valuations?
Ex¬
,,

1954-55

amples

its

with

a chief bene¬
gold purchase policy

annihilation

for us in
the trade-aid arena? Current spec¬
ulative interest in gold shares-

evaluate management—hot capital
structure or times earning ratios.
In comparing
Sperry Rand with
IBM, it was noted last June 5 that
the proceeds from... 19 shares of
Sperry Rand (18) would purchase
just one share of IBM (350).
It

this

can

Russia,

our

threatens

effectively

can

How

whispering

when Soviet

Stores at 38, returning 4.2%. Now
both stocks trade at 55—an indi¬

cation

gold mines.

campaign on
gold shares have validity in the
face of the just enacted European
Monetary Agreement? How could
Congress sanction a higher price

44 and Ward 42!

now

28.8

Beckman $24.3 million,

—

$54.1

million; Bell & Howell,

million

shares and Westinghouse $27.2 to
$55.1 million: Polaroid
only 17.1 million.
Westing-' $172, now $436 million:
Texas
house,
still
with
17.1
million Natural Gas $43.9, now $90 mil¬
shares, struggles to attain its 1955 lion; Thiokol $55.7, now $145.0
high of 83 while General Electric million.
with

trades at 85—this high figure not¬

Similar 1958-59

comparisons

are

withstanding the 3-for-l

related to American Motors. War¬

1954

ner-Lambert,

split in
which changed issued stock
million

28.8

from

87.1

shares.

million

Still

raging

debates of

the Wall Street

are

1954-55

pitting Chrys¬
against General Motors. Board

ler

gossip, certain brokers and

room

investment counselors urged debtfree Chrysler with its 8.7 million
shares

compared
to ^General
Motors'87.4 million shares—almost
as

10 times

capital stock—pref¬

shares and debt. You know

erence

the

General

story.

Motors

soars

145 and splits 3-for-l.
Now,
with 277.7 million shares, General
Motors
trades
near
50.
At
52,
to

Lorillard,

Pfizer,

American

Photocopy,
General
Electric, General Motors, Litton,
Raytheon, Zenith, BrunswickBalke, Armco, General Transistor,
Texas Instrument, Universal Con¬

trols, U. S.

Steel, Kaiser Alumi¬
Great Atlantic & Pacific Tea,

num,

Continental

Oil, Stauffer Chemi¬
cal, The Texas Company, Molyb¬
denum Corporation, Richfield Oil,
Great
Western
Financial,
Rey¬
nolds
(R.
J.)
Tobacco, Florida
Power, Tropical Gas, Itek Corpo¬
ration

ad infinitum.

For

we know advancing
have widened profit
We see the evidence

some,

technologies

Chrysler still has its 8.7 million margins.
shares, but debt-free Chrysler of where Sunray's Suntide modern
five years ago now owes $250 mil¬ push
button
refinery processes
stockholder

new

exceeding $30
Where

are

per

liability

share!

the debt-ridden rail¬

headed?

roads

Trucks, pipelines,
waterways,
automobiles

and airlines relentlessly aggravate

At this moment, five
join Dallas to

railroads

Houston.

For truck

automobile

magnificent highway traverses
244-mile route.
By air, the

the

choice is Trans Texas, Continental
and Braniff.
Our overbuilt rail¬
road

plant

should

down

vent

not

than

systems.

commuter

sweated
inter¬

Near

lines

insol¬
Boston

Maine, New Haven and others

could be sold at

salvage with out¬
equipment trust certifi¬

cates assumed by a Municipal Au¬

thority.
then

New indebtedness could

be realistically scaled to net

earnings
service
two

minimum

hours

two

—

mornings—

evenings.
Railroads
comprise an industrial group

where

even

spect

crack

conflict

are

hours

now

for

with

worried

managements
personal

creditors

re¬

and

the

compulsion of yielding hope¬
lessly to ruthless and
growing

competition.
For investment

mediocre.

1956-57 still show paper losses
with
distributions
added.

Many funds retailed

even

Managements cash profits, hope¬
fully ride losses—a common hu¬
man failing.
Comparative mana¬
gerial
records
cannot
be
con¬
and

York

Discerning

investors

have

provided
Stock

speculators
available

certain

Exchange

certain shares of the more

promis¬
industries—drugs, recreation,
insurance, tobacco, oil. electronics

ing

chemicals?

What

about

petroleum

sharp

re¬

New

member

;

■

the

irrepressible
faced with a

industry
in
Federal

rise

gasoline

taxes plus an automobile industry
bent on introducing the economy

turbine engine with its single

gas

spark plug and minus water
tem

sys¬

and

pistons?
Do domestic
producers,
excluding
those where reserves emphasize
natural gas, have the profit incen¬
oil

crude

tive of other years?
tic

strong?
or

Is the domes¬
price structure weak or

crude

Will the dual carburetor
turbine engine, burning

gas

mongrel or chemical fuels, im¬
prove
the lot of non-integrated
companies dependent on crude oil
and

runs

stable price structure?

prices' favor the
refiner, what about rising gas con¬
nections displacing fuel oil — the
While

soft

crude

and

butter

mu¬

funds, it's the same story. A
few exceptional — others average

cealed.

75,000 barrels of crude daily with
240
employees while D-X Sunray's Tulsa refinery labors with
over
2,000 employees to match
the
figure!
By themselves,
do
these technological advances jus¬
tify the present high premium on

bread

shares and

tual

search
an

rectly evaluating managerial suc¬
cessors
to Ward's Sewell Avery

standing

hedge against deflation; i.e., hard
times, chaotic financial conditions
and general world turbulence ex¬

continental

26 BEHOPSGATE, LONDON, E.C.2
London Branches:

free and useful service.

to Montgomery Ward at 35 yield¬

different

___

dicated

their plight.

Cancelled

Stamp Tax

again, Sears at 29 with its in¬
yield of 3.4% was related

year

inland

Payable to Investors

Insurance

Legislation to change upward
our
gold price from $35 seems
thoughtless
and
irresponsible.

lion—a

companies at Market-

J. Hepburn.

poor

underwriting results, obviously the bulk of the increase (also to

branch office at 28 West State St.
under

such

reinvestments of dividends and maturing agreements.

Stocks of Insurance

Schmidt, Roberts Branch
TRENTON,

unsatisfactory underwriting year
of the industry. Life operations

very

portions

fire-casualty

of John Kasenchak.

Roberts

The portfolio consists of

MAPLEWOOD, N. J. —Mutual
Fund

was

approximately $8,370,000, compared
with those of 1957, $7,701,000, an increase of about 8.7%. As the
dividend increases by the underlying companies were but few

of the

Open Two Branches
branch

ship created intense employee op¬
position — not cooperation.
Last

Was

set up

was

membered that 1958

with

ties

ager

in 1938, and has confined its portfolio
to insurance stocks on the theory that if the general economy were
to grow, insurance companies would have to participate in the
growth. Its recent growth data is impressive.
The management points
out that 1958 was "the all-time
banner year" since organization, with net assets increasing from
$223 million to $356 million, for a gain of $133 million, or about
60%, giving it the status of the largest of the specialized invest¬
ment trusts.
This is an outstanding showing, for it must be re¬

HARTFORD,

trust

been

quite favorable.
Cash dividends accrued,

Stevens Hartford Mgr.
For Shearson, Hammill
time

insurance stocks, life,

were

also associated.

was

unit that specializes in

California, where it is domiciled. But its success has
outstanding that it could well serve as a model.

change, in the
trading

D'Arcy,

been

casualty and lire, namely, the Insurance Securities Trust Fund. Let
us say at the s.tart that the operations of this trust are confined to

Boston

the

billion
sales edge favors
Sears!
Avery's reactionary leader¬

annual

means

members

Insurance Stocks

—

INSURANCE SECURITIES TRUST FUND

Street,

of Restraint
firms to review comparative rec¬
ords of over 160 different funds.

Sewell

Putnam

terms. Today, a $2

even

This Week

Company, Inc.
77
Franklin

1959

page

Thursday, March 12,

By ARTHUR B. WALLACE

1959

Mac-

have

Donald

joined

from

business?
other

end

Manifold

than

exotic

fuels

their

problems
and

nu¬

clear energy plague our domestic

petroleum
Even

industiy.

assuming

Federal
taxes
Security go un¬
changed, what about taxes at State
aside from Social

levels?

Treasuries

erished.

New York requires

million
nia

additional

seeks

are

taxes!

matching

•

impov¬
$290

Califor¬

amount!

This trend is established. It is
tion-wide.

New

na¬

taxes, direct

Volume

Number 5828

389

indirect,,

will make, rethose
good knowledge of these consid- which involve honesty. That you
erations, she may end up someday will always get from me, first*
anything but one of your satisfied last and always. That is the only
before

adversely
affect
and
prices of

must

flation

stocks—current in¬

With

Securities Salesman's Corner

notwithstand¬

psychology
' •'
■/'/'.

ing.

..•> »■

',v

manipulation,
certain shares will again be in the
spotlight—but even the blind hog
should

find the acorns

sive!

The

r
er

mercial

tag for

30,

1958).

label

for

1959—"A

from

act

Year

the

■.

when

even

most,' optimistic

they

tion continues to appreciate.
the fellow
that has been

are

only when the evidence

Halsey, Stuart & Co. Inc. headed recommendation for both specu- is as conclusive as possible. Other¬
underwriting group which of- lative and investment accounts,
wise,
play out the trend
and
of fered
yesterday (March 11) $25,you'll.
Quite frankly, despite the most don't fight the market
S J* 000,000 Northern
Indiana Public efficient research and the best get clobbered if you do.

■

*?erY?ce! Co.

first

mortga ge intentions, this is

a business where
mistakes will be made and must
be'expected. During the past 15

■/- bonds, series J, 412%, due Jan.
15, 1989 at 101.656% and accrued

interest,

yielding

4.40%.
the
of

The

bonds

March

months

awarded

was

its bid

V- Co. is to

rI.

most

misjudged

the

economy

100-83%.

of the

some

analysts
a

astute

the turn in
what looked

from

slide into quite a depression

Northern Indiana Public Service with

possible nation-wide unemployment of 10 million late in

apply the proceeds from

eluding

of
bank the evidence became crystal clear
provide funds' for "that we were in a period of strong
its construction program.
"■* business recovery, inventory acThe new,bonds will be redeem- cumulation, and the stampede to
able at the option of the company buy stocks was well under way

•loans

f1'
"

investment

small

handling

particularly those that
beginning to move out
to move
of Savings accounts into securities,
accounts,
™

are

now

pre-payment

made

for

Also

income.

wiifiinl

+Ka

rtawa

mutual

careful

•

these

experienced

jammed with big name stocks
and that are yielding much less

are

„

only true income received by an
investor in a mutual fund is that
distributed as investment income
after expenses have
been
de-

;

may

redeemed

borrowed at

funds

nothing remarkable in the selecmonths you
tion of stocks. There was industry
speaking the truth when I state preference which is some cases
that some of the best "guessers" represented as much as about 11%
around

interest cost to the

/" company of less than the interest

;I'; cost of these bonds.
.TSe comPany supplies

natural

and

having

when

estimated population of

1,500,000. About 58%

■

? !

revenue is

the
1

;

that this

of its oper-

you

derivjed from the

are

one or

Ft.

both of these

Wayne,

most

Gary,

South

Bend, Hammond and
Chicago.

111.-—

The

you

oil

over

course

will

consist

Wednesday,

Any

Becker

Chicago,

[r,

vestment

build

will

slow

.^1

investment

Possibly

Chicago.

buying

that

Calif. —
Co.
has
office at 9860

BEVERLY HILLS,

opened

Smith

branch

Wilshire Blvd. under the manage¬
ment of Herbert H.

Maass, Jr.

(Special to The Financial Chronicle)

your

out

soon.

you

the

when^net yields
When net

income

are

and

companies.

SCOTT CITY,

investment W° VoiinV is
mvastment W. Young

less,

OjL, tflG

m&QK

s^oc^s

some

He was formerly
jy

are

Now With Reynolds

even

(Special to The Financial Chronicle)

There

attractive

look

with W. Jay Israel.

investment

mutual fund.

that

funds

through

DlUG

111

Hllu ...pUv.lv

Kans.—Frederick

engaging in a securities business from offices at 420

now; there are investors that can
and should buy them; but if you

CHICAGO, 111.—Pnnip L. Stone
has become connected with Rey¬

in this

39 South La Salle
previously with
Hallgarten & Co.
f - /

want

build

business

pick the right fund for the
right
investor.
Just
any
fund
area

nolds

Street.

Co.,

was

won't do.
Last but

not

least, try and ob¬
situa¬

tain well researched, sound

tions

that

firm's
carefully.
Try

111. —Jordan
added to the

BLOOMINGTON,

Take the time to study your

recommendations

White & Co. Adds

(Special to The Financial Chronicle)

them.

value

have

Childs

has

been

reputable and ex¬ staff of White & Company,
analysts. Don't go off West Washington Street,
half-cocked if you can avoid it.

and follow only

216

perienced

times when fast action

There

are

seems

imperative, but

Donald R. Dwyer

delay of

day or s.°> or even a few hours,
can sometimes save you some fu-

ture headaches.

Don't oversell — don't overpromise—don't hesitate to say to
your

customers "Expect me to be

With

Blair & Co. Inc.

(Special to The Financial Chronicle) '

CHICAGO,
111. — Donald R.
Dwyer
has
become
associated
Blair & Co. Incorporated,
105
South LaSalle Street.
Mr.

places

in a while, I hope it Dwyer was formerly with Eastwill be very seldom, but sooner man, Dillon, Union Securities &
or

later, wrong I win be.

If so,

an(j

prior thereto was in th0
«

of Fairman,

IN OHIO'S

That

trade

MOST

can

lingering regrets

part

one

your

PROGRESSIVE

customer

have
It is

than a joke that many in¬
vestors, and nearly all speculators,
will accept their profits as their
own doing and their losses as the

AREA

of bad

advice from

others.

Watch your step carefully in this
bull
market
and
"switch"
only
when

you

have

moving

out

for

well de¬
changing one

very

another.

stocks

RESULTS

As Ohio's most

that

have

progressive

the Columbus and

area moves

ahead,

Southern Ohio Electric

Company invests to keep pace.

It's

a program

1958°™^1597

OPERATIONS

$46,324
36,105
$10.219

Gross

Income

of continuous
dant

growth to

assure you an

abun¬

supply of dependable, low-cost electric

power

for tomorrow's needs.

$ 4,o5o
construction (credit1)

Interest charged to

Earnings

The Columbus and Southern Ohio Electric Co.

on common

Common

North

Front

Street

•

Columbus, Ohio

per common

Shares outstanding

(in thousands)

1,312*
3.2,664
$ 7,794 ]

$ 5,353
$2-02

Earnings

$ 3,976

774:
$ 3,781
$ 6,693
1.340

Preferred Dividends

had

215

.
.

Total
income

$10,458*

$10,185^

Interest and other

Net

$44,306^
34,121

$10,474

Operating Revenues
Operating Expenses
Operating Income
Income Deductions

careful

consistent, fast, and large
Christensen, Inc., 724 Seventeenth upward moves and never sell anyStreet. Mr. Steele was formerly thing
unless you have a very
with Purvis & Co.; Mr. Gerali was valid reason for it. After a very
with Robert J. Connell Inc.
- * substantial profit the "hurt" isn't
.

mature

INVESTMENT

;

than the satisfaction he may
from all his other profits.

Gerali, Everett E. Steele and John
A. Thompson have become associated
with- Peters,
Writer
&

;

Youilg Opens

fact alone compels the acquisition

SERVICE AND

customers will see it) will
have taken them

too

into

partner, and Morris Busacco and
Alfred Marozzi, limited partners,

YEAR OF

be that you may

reason

Victor

thing—a

one

ANOTHER

a,war(e th?t Yhln,you su!glst
P a stock that one of the
worst.cranes you can commit (as

stock

—

name and

means

fined

Colo.

big portfolio
lot of
money has been invested and this
big

Southern Ohio

DENVER,

only

Columbus and

^ie:

result

Three Wi*h Peters, Writer

sell fund shares.

clientele.

Handling Accounts

Zuckerman,

who

of these funds

one

nothing

Williams 8i

his efforts.

cause

Zuckerman, Smith Branch

—-

(in my expect me to come to you, tell
* .
**
,
,
opinio'n) =than a ?ross section of you the facts and we'll face up trading department
Pjue chips at a price level never to what has to be done. But what- Harris & Co.
*
L
is

not have any
in the invest-

years

„

is President of the InAnalysts Society of

NEWARK, N. J.

man¬

Reports on:

E. 'Torrey, Jr., A. G. •
&
Co.
Incorporated,■

about fund

lot

Electric Co.

not

Finley, Chicago Title
and Trust Company. ■'
■ v7",uBe
Clarence

widow

few years
his busi¬

^.Reservations may be made with

little

her mite into

agement results—it is best not to Associates has been formed with
expect too much—certainly don't offices at 60 Park Place to engage
promise the impossible and use in a securities business. Partners
some
good judgment when you are William Angelo, Jr., general

wrong once

did

rebuild

future

doubt very

above average.

even

-■bet;':°n.;;_it.: Besides, unless you
build/.your. business on a sound
^asis/^®re 1S very little satisfacman
tion
can
derive from

the

solid foundation, and he

acquisition, exploration, > drilling,
production, transportation,imanuj/facturing,
accounting,
financial
v>> analysis,
research, and <industry
economics. Cost is S3 per person.

....

much if it will be sensational

™ent y business again.
I don t
know, but I for one would not

Harold

have

will

should be steady but I

of the Midland Hotel. Subjects to
"be covered will be geology, land

Form Williams Associates

the a

companies in each industry were
mature giants and what growth

who

fat for

Will tell you that it is no fun at
all to;; go out in lean times and

but

investments,

and

total

ness

lived off the

five

April

teach

•

properly equipped to dis¬

ones.

through 29 from 3 p.m. to 4:45 and
.will be held at the Adams Room

the expenses
investment firm

years,
an

The salesman is involved in
this too;.* ask any man who has

Invest-

curity analysts by the Socony
': Mobil Oil. Company. • .■ V
v
The

the

the lean years that follow the fat

industry, planned for se-

sessions

oinerwise
otherwise.

yto adequately cover overhead in

,».,/■

F-:

today.

tribute securities will be too large

Analysts Society of Chicago
announces
a
course
of study • on
the

xmnK
think

to
to

running

that is

ment

salesman

Without customeis who stick with

CHICAGO,

good firms

nonsensical
nonsensical

East

Chicago Analysts to
Study Oil Industry /

fortunate

they

"it."

was

you arg connected with an investment firm trial reanzcs lis
obligations to its customers," as

supplied with

finally

to the realization

are

late start

market

sale of gas. Among the cities

services

bull

this

counties in northwestern Indiana woke them

gas

during the past six
will know that I am

elec- fn the business got

"tricity

bit

The

with

curities business from offices at 41

holds true of growth funds.
five years is going to

same

Opens

East 42nd Street, New York City,

again selectivity is important. The

ducted.

analysts

■

even

t at
that

tu ds
funds

recently looked at a big name
fund composed almost entirely of
i\for sinking fund purposes, begin- change their opinions.
blue chips. The income produced
ning with the year 1965, at
Pricesi / .Let,it be said that the capable
scaled
from
101.50%
to. 100.%';/dries did change to a strong bull- was about 2% after expenses; and
provided, however, that prior to jsh .position regarding the stock the expenses amounted to 25% of
total investment income.
I saw
Jan. 15, 1964 none of the bonds
market, but if you have been

^ at prices beginning at 106.16% and did

David Weiss

David Weiss is conducting a se¬

very
well withdraw
funds from savings and buy
at today's prices.
But here

seirquamrand'don'T overreach g0>°g to Think twice before I tell Main Street

e sa\e.°f the bonds to the cost 1958. As a result, the turn in the than the 3% and 31/2% available
additions to its properties, in-' market \yas missed, and not until in savings accounts today. The

;

approximately

group

type

might

some

But
left

Rule I: sell, switch,

day's prices!

a trade, but

concerning

income

the

well managed and a small inves¬

years

opinions,

Muj

some

funds available in this market are

standing at the $10 post with a
have become so five point profit and later sees his
aware
of
their
obligations
to stock advance to 50 or a 100 is
customers that they are leaning going to have you for "breakfast"
backward
in
refraining
from everytime he picks up his mornoverselling and overstating their ing paper and looks over yester-

Halsey, Stuart Group
Offers Utility Bonds
-

rji3->

the

over

n,i:

oik

that is worth more
goodwill of his cusMany investment firms

aCqUjre

tomers.

year—

**'■

that

Tliere is no asset any salesman so potent if the liquidated posican

than

■of-!''

Handling "Bull
Temptations
<

tor

this

heart

the

"M.

At-think!

Market';

In the stock market don't

straint."

•

was,

«siiffo,p«?teHsuggesxea:

Thf>

Jan.
:

mistakes

ever

member they will never be

fully work together for your ad*
vantage and for mine."

Chronicle,

Financial

some

basis upon which we can success*

Some Suggestions for

elu¬

1958

and if
pretty

history,

The foregoing is not an indictment of mutual funds.
I believe

By JOHN DIJTTON

"A
Opportunity," (The Corn¬

Year of

customers.

without

known

she does this without

general -business
many common

(1215)

The Commercial and Financial Chronicle

$ 6,824^

2,651

970

$2;f>7
2,bol

The Commercial and Financial Chronicle

(1216)

crease in supply of labor

Continued from first page
^

which roads from inflation

has now ing

—

Thursday, March 12, 1959

prices of goods in

many

necessarily accompanies these moved up to lJ/2% per year, and world trade.
family formation projections. Un- I've found several instances where
From this analysis, we might
employment
is already causing a 2% figure is being used. Avery conclude that 1959 will see no
concern because recovery from the recent poll of academic economists more inflation or
any intensificarecession has
not
been
accomby the Congressional Joint Eco- tion of the price-cost squeeze. This >
of recent growth panied
a
by a corresponding in- nomic Committee reveals that only view, in fact, seems quite reasonmajority of American business
Continuation
{
leaders now expects:
trends alone, for example, would crease in employment.
10% of those responding consid- able for the months just ahead, -f
(1) Increased g o v e r n m e n t suggest an increase during 1960-69
The widely accepted view is ered "a satisfactory high degree But I have some personal reservaI
spending will make balanced Fed- in population of approximately that the labor force can be con- of price stability" to mean an ad- tions against such a Conclusion y I
eral budgets in the future less 35 million, or 20%: a rise in the sidered fully employed with 4% vance of under 1 % per year. More covering the closing months of - j
and less possible except under the dollar volume of U. S. business out of work,
reflecting persons than
half
defined
satisfactory 1959 and the year 1960.
"V ;

Taking

Real Look Ahead

ckki

*—

-ua*..—

1—-

--S--

-x-i-fiij.—

President:;
i

„

........

„

are

fears

There

inflation-,;

end of the decade some 49 to 50% bor force. To hold unemployment from 4 to 10% were quite accept- ary wave beginning before the : :,
power.
•
above current levels.
to 4% of the labor force in the able. ■
\
end of 1959 or early in 1960: »
(3) There can
; These are indeed glowing pros.- mid-1960's will require the addiFor perspective, let's not forget ' (1) A wage crisis is in prospected
in bond and other fixed income pects
especially when compared tion of roughly 10 million more that a price adtance of 2% per by mid-1959 because of the steel?/i
investments
than rn
common
with
the decv.de ol
t e
. o
jobs. How easily these will be
year comnounded means
a
dou- industry negotiations
stocks.
;
which was generally speaking-a found is a real question. All oi hlin„ nf thp nrW WpI in
vParS-:OA
Anv
wage
increases.
Dar- j
economic

labor's

and

political
v
..
be greater risks
.

confiscatory penalties of such
in inat rates substantially larger

inflation requires increases

by businesses to recover the
costs involved;
now

under way,

than

subject

less

rather

influence

government

and control.
will

further

narrow

the

economic and military advantages
which

country

our

inflation?

You will recall that the

recession
has re- results of my investigations show
individuals that the that business and banking leaders
business cycle is not dead. Many seem to feel pretty generally that
people in business now concede more moderate inflation
is inthat it took a setback in business evitable,
not only in the 1960's
to make them more conscious of
but indefinitely. Moreover, there
The

recent

minded many

(7) The Russians and their satellites

inflation.

holds.

now

a««J

these expectations aie not exacti.v

the

type

the

efflc'enfy-. The vigo, of te some highly regarded thinking
snapback in business from the that creeping inflation is a lessei

promote an era of. low point last summer was surgood feeling m business and bank- prisingly strong, and many new

ing.. In fact, should these predictions materialize as stated, it is

undesirable changes in

S
_

little further expansion throughout 1959,

ev^ence that business, including and particularly in the second half
banking, leadership is poised lor 0f the year, than only a few weeks
action

prevent these predicted

Nevertheless,

ago.

there

still

our

economy.

miring

rho na«t

vmi-

d,^e ^seems
®
rin

„r

mnv

taken

toward

.ntitnHo

fh~

nrnfminri

'have

nr/S

,JSh

We should recognize at the out-

is now peal as a cure for insomnia than

element

dynamic

most

tf. 'Z

the public generally.
,

In many respects, we siiouid all
be thankful that the general publie

this

country is

really

not

I™

while

simo X-'1
,

rensonsare

Xe'ScSritofStJtosKStbat
inflation has
m-owing fear of

gone beyond the talking
is in the forefront of the
for

sions

being

reasoning

any fighting
eco-

^
undesirable

resist

Would

made.

gradual

uoward

course

with

tragic

accounts

noniilaces

1 (4) The latentJ inflationary ef^,r
fects of the Federal Government's v
deficit plus the appropriations of;
the new Congress should add fur-.;

the^steam; to, the rising- cost

boiler;
-•
ua.
' <■') Concurrently private capital.:
spending also should pick up rac¬

+n«

k;Aa

nHwifo

inrocimon<

mentum toward the end of 1959
and in I960; as rising- demand i

tebsivelyin the. capital

goods

ma^efenanding incomes and
„rpdLfiv fner^ina em^lovmemt

^^i^^sti^at/^orehuy-^
}

n/Siiiv durable
©specially_aurao_

soods

goods

nomic
_

community or you own organizan'
There ^eems to be a bit
more talk and perhaps a few new
-

emotional

outburst

circles,

ness

notabie

bettor

Sirs

within

but

with

exceptions

busi-

few

not

very

many

,,,,

Why do

so many

now

business lead-

quietly acknowledge these
prospects without rising up in

ers now

leadership
tions.
for

whatever

ieaS?nS
om

poor

conimunica-

business

work

stoppages

atti-

Jfd,b, iesmorethe cJ"al conviction
111 moderate inflation
that: (1)

(e.g,j steel and railroads) actually rapidly rising prices and the corBy the end ol the year, the responding losses of value and

occur.

business

volume

be up

another 3-5% from the

should
cur-

rent level.

iow6, will herald a
a.MCi uw>. ?e

the

1960s

new

pe-

Jiod of enormous economic
expan€ic)n,
and
eliminate or at
least

postpone

indefinitely

economic

short,

there

*
f

political

business

real

any
crisis.

whatever
is

"In

confidence

their

money.
No
hint of sikch inflationary fears is
now evident in this country. There

Are'

policy

Dt^uici

)r,

Vdecisions

because

different
become

inflation-conscious

during the past year?
Tn

rJ"

fuHffment
or

nHce

interest

the

long

term

tempered

presidential: a n d - congr^sionaF,
elections will begin to influence
many spen
^ decisions.
-v:.
■
So that 1 am llot misunderstood.

™^vavtiBafk>ifS?

aje, of course, periodic outbursts debt now may well have increased
ter than 1959' with heavy presi'
?ntlclsm b-V particular individ- permanently to include some re- 1vn1f"a1"®
dential election overtones. Busi- uals or groups against higher turn for protection against infla-

ness-cycle,
raises the

—to be paid — but an ab- tion as wen as for payment for
se«©e of complaints about higher the risk of the funds involved. As
to be re- a gueSs, I would say the cost of

analysis brices

time-table

question of another

re-

cession in 1961-62 and also in the

Prices including wages

middle of the decade ahead.

ceived.

The

This does not rule out at least

fairly,
the

severe

one

business setback

1960's, especially if the boom

periods

are not

Growing

restrained.

Foreign

Competition

With the activation of the Common

the United States gained

one

its key international objectives—
i.e., greater economic unity and

strength
aiso

pretty

inflation

lost

Western Europe—but

some

its

own

world trade.

The

clomicom-

well

summed

in the term
"If what

commonly heard. view:
we've had during the

thus

far

past

ten

;

money.
.

•

Calls for Leadership
I'm afraid it's going to take

fJjJPj

expected to take active interest in

a 1C; ,tnn

fleet, only

NPvMhPlPR«f

uoiict trade position ot the Lmtea
can

or *ne
UI the mn>s

how

about

States

prospects for

cations for

only suffer. Tne impliour gold stocks and the

m?-re ^ni?cant' however-

the

decade of the 1960's, which be- value of the dollar are obvious.
gins; in less than ten months?
Most forecasts and plans for the

the noticeable change not

iv in thpir thinking hnt
more

their

actions

mere-

mnrp

and

because

inflation

poses

serious threat

price

dampening adjustments per

ol new equipment put into use in

cost
savings over older, and less effi-

recent years offer important

cient equipment and tend to infuture; purchasing power of the t e n s i f y competition. Enormous
You \ e heard manv glowing de- decade of
the 1960's to date have dollar.
agricultural surpluses exert strong
ecriptions of it -the Golden.Six.- centered on the demand
outlook,
Onlv two or three vears ago
downward pressures on prices of
ties,
the
Sizzling Sixties,
or nrimarilv beean<?P of thp
*
ry
or tnree >ears ago, farm products and related goods.
perhaps just the "Fabulous Six- n?w Sy f ormations^Lnmh^ wIf®Skf°re<2?tlng "I®13 C0UT In
addition, economic warfare
expected

ties."

Business

expansion

been'"based Pheavil!' noonS
nresnects

nea^u.

plans
these

unon these

gin

AwSS

further

declines

does

now

the

with the Russians in international

if:

Eachy .new expermpce .w h i C-fi.
business and "the public have with*
a

the wage-cost spiral can .only har-.
ther s®rve t°;u^er^or^..the wide-'.
spre^. bebef -toat^more, inflatio^
w

more rapidly accelerating'
simply because more and

threat of

prices
more
1V

people seek to protect themaBainst

iiKhTnh th^

largely increase little if .at all this year,

^uii^vvciiuiiciH
w^; ,
Leaders m American business

First,

"*;

^
exioeri
'™s.* „im/tn afpL wS
their price expectations. „ ; nfxt ft td 15 months

Prospects for the Decade

iAaJ

nmHiSfv

How Much Inflation m 1959?
Would you agree that creeping

How sure can we be that price
much more first-hand experience advances will not gain momenwith the ravages of inflation be- turn?
fore the American public can be
A good deal of the reasoning that

come

tors? Their future actions can re-

a
lot of education and unfortunately

becoming against inflation to

P
i,
Jii
&
Rampant mfiation wilT still be
hfd m check by ,such factors as

J?s

bined international trade volume meeting this problem. Conse- to the United States can be traced
of the Common Market countries quently, we must of
necessity ex- to the widespread belief across the
is roughly equal to that of this pect the leadership'in the fight
country that prices generally will

"11®?°"! 9OUI,tr5:- Moreover, it is

Zi'

is reflected to

years has been inflation!, then let's
have more of it. We've never had inflation is not a dream but a
it so good."
^
reality in the minds of many busi*
'
ness leaders, investors, and educa-

Market in Europe in January.

nance

concern

The-'-political prosperity.

today any
they too have

year 1960 shapes up as bet-

gradual decline m the
purchasing powerot the dollar-simply is-inevitable, but it wont
—i.c

themselves against the ravages of

onr
?■ ""

1 recent tendency has been for reAll in all, the attitude of the the extent of a Vz point rise in *
^ of cessions to be sharper and shorter. American public generally seems the interest rate charged on long

judgment, the basis

present

many

^ani

major

total

dunderstandin^Gof "he°d^ """ The

in
^develoDmenfs
widel\T foreseen

financir1g

D.on°

well

V.«.

beComes
j

'„aP

£ar^

de-

fixed in-

As a corollary, government

come.
b

infiatimi

;

wMilpi37

harder ls weakened.

oroares-

oioeres

,nc
'

work

poreiffI1 Experience With Inflation
Manv

iviany

business

financial

ousiness, imanciai,

and

ana

government leaders from foreign

conning are^clnng ^conomic

over- the price level would advance less markets Plus increased foreign c0l!n^rv with unusual interest
looked is the very real problem than 1% per year. This figure— competition at home as well as these days. They recall the sober
01
absorbing the enormous in- which measures the annual inabroad have placed a distinct ceiladvice which many Americans,

-^'niost- entirely

;

fair to ask bankers whether any
i concur, that the economy will inflation. History books are filled recent change has taken place in

deci-

investment

actual

the

stage and

^ni vn!r01!lfnwidespread agreement, with which, concerned about the problem of
mood

giving

and

fo™alt£e
sMftinto aiminlshes cjpacity -,excesses mjc?:;,
an™*wa™ft-bm «xed in- new product. and proeess -require-

Recently the rate of recovery set that the subject of. inflation
has dowed,as seemed almost in- currently has a much greater ap-

a resultj

inevitable

and destruction of incentive—the

The Inevitability of Inflation

highs are once again being established.

greater concern about the rate of as a matter of serious concern to

The

gradual economic dis- price advances where competitive'
tress, social and political unrest, conditions permit;J

hiif,,

unemployment.

behind.

use

some

result

"',1.1 if'""

all-time

^• natmna! economic and pohti- eviteWe_, A's
1,.^'.
/
Strikingly enough, there

evil than

fall

will

ai¬

of
productive facilities
further impetus to,
ring

will

higher

(3) Some general inventory ac-*

come

■

Volume

including
them

Number 5828

189

bankers,
have
given
continually and gener¬

*•

inflation and in recent years

have

learned

greater

What

Can

page

Will Good Economics Prove

The popular view is

To Be Good Politics?

is to trace in de¬

self-discipline—despite po¬ tail the logical consequences of sc
litical recriminations—in check¬ much current thinking about the
ing the depreciation of their cur¬ inevitability of more moderate in¬
rencies. The recent strengthening flation. Convince yourself that it
of many foreign exchange rates is important to our personal as
against the dollar is ample testi¬ well as our national way of life to
mony to their success.
Is it any check the inflationary trend so
evident in everyday thinking and
wonder that these same individ¬
uals now ask us why we don't more and more in everyday ac¬
follow our own advice to fight tions. Until you individually see
inflation?
They chide us from the danger clearly, you can't ex-;
their own experiences against ac¬ pect to sell many others on doing
cepting the false assumption that something about it.
inflation can always be creeping.
The next step is to determine
|They say they know it can't.
where the strongest blows can be

policy,

nomic

prices. Hence, the remedies most

often suggested are a

literate

treatises. _The

axlc

structure

Federal

free-

market Price

ists, cultivate a capacity to relate
vignettes to the whole picture,

system was worked
out, in the main, by men try- and develop the literary talent
ing
to find
answers
to
msis- to command a wide audience tor
tent
political
questions.
The our writings.
'
great pioneers in British classical
j
economics faced the hard politiThe Problem of Creeping
cal issues of their times.
Smith,
Inflation

officers in making wage
agreements.
But this diagnosis
and remedy are plainly deficient,
Although systematic control
of
Federal
expenditures is impor-t
ment

well

at home.

seen

lead

Inflation

can

unem¬

ployment and social unrest. Any
textbook

economic

warfare

balanced

budget.

all want

steady gains in our living stands,
but not temporary advances.
the cost of wrecking our eco¬

ards
at

between 2 and 5%

cannot

inflation

cause

salientj

the

because

they,

only about 1.5% of aggregate
demand. If the pull of excessive

form

VJ.

XJL

n,.

who

likely

niinritc

th<»

spend the
.thorp

nvpr

infla-

sh0uld

f;nri

causes

demand

aggregate

^ther

85%! Morepxtpnderi

bpon

havp

thnw

amnn?

periods of rising price levels when

falling

Federal expenditures were
/e

and stable prico

1945-43)
when

rising
that

outlavs wero1

Granted

g
1951-53)
upward push

the

played

has

prices

Federal

wa°e9

impor-

inflation experience
admonitions to
«restraint" are not very ef-

tant role in
shown

has
use

that'

stable dollar.

the

they

tant,

Mill, Ricardo, Marshall, Pigou and
Unquestionably, a primary
Keynes all served as Royal com- problem of economic policy of
missioners,
bankers,
or
public our time is how to maintain reaservants
All wrote for popular sonable
stability
of
the
price
consumption as well as for fel- level in a free economy that is
Still other foreign leaders, par¬ struck
against inflation. Pretty low scholars.
The marriage
of growing vigorously. We may asticularly representatives of the clearly, the initial target is gov¬ academic
speculation
to
policy sume that the American people
Russian countries, quietly applaud ernment because of the basic in¬
formation was peculiarly fruitful wish to have full production and
unbalanced budgets and the no¬ flationary chain reaction from (a)
in the evolution of British classi- employment and economic freeticeable change in public senti¬ more spending to (b) more deficit
cal economics. Thorough applica- dom along with a dollar of dement toward accepting inflation as
to
(c) more monetization of the tion
concepts
were
tested and pendable buying power.
In the
a way of life in this country. They
government debt to (d) higher
either sharpened
or
abandoned, end
they
will
accept
neither
foresee the United States steadily prices and reduced purchasing
First-hand
contact
with
public stunted economic growth nor a
losing its economic advantages be¬ power of the dollar.
policy
issues
gave
economists network of governmental controls
cause of noncompetitive costs and
We've got to be completely real¬
fresh
information
and
perspec- of prices and wages as the price
the
further
weakening
of the istic and not
merely tell our con¬
value of the dollar in world trade
of a
gressmen and senators to vote for tiyes which they

used to formu-

reduction ill

expenditure
and
"reby union and manage-

straint"

theoretical ency to become narrow special-

competitive

that creep¬

increases that outrun gains
productivity
and
force
up

and

results to

13
the

wage

/
communicate the braiths book threatens to mislead
people through many laymen. 3
We economists
political tiacts as well as system- need to resist the powerful tend.

over

inflation. 5

ing inflation arises from excessive
Federal
spending, s
and
from

I or we

deal!

There

end.

this

dissention

much

causes

especially about the problem
inflation? My answer is a great

The first step

achieving

even

Done?

But, you say what can
do,

eco¬

exercise

from first

healthy, forward-looking changes.

with

tunate

Continued

sound

ously during the postwar years—
to get their economic houses in
order, to live within their incomes,
and to stop inflating their currencies. Many have had very unfor-

personal experiences

positive stand to help in¬
growth through

take
sure

(1217)

Findncial Cluotiicle

The Commercial and

fective in producing non-infla- .
™lieW J eori?s*
.
Despite a few dissenters, there tionary wage agreements, Re^.The value. of economics as a js a growing concensus that creep- straint must grow out of- the
? 7^°f intellectual activity must jng inflation—a persistent rise of bargaining parties' conception of
m
the
•

long

extent

rest

run

upon

in the

year

their

rather

interests

own

than

which

really helps price ievel—is in the long run a out of their regard for the genpolitical system. Even
a better
if
they accept the principle of m,an advan.cf toward are long life. drag upon national progress, and era! interests of society.
The theorists who
re- that
js both feasible and deThe popuiar analysis of creeppriority objectives in undermining
avoiding deficits, they must vote membered are those whose con- oirahie to nrevent its occurrence
•
•
A f.
•
the economic strength and even¬
on
specific appropriation meas¬ cents; nave naci oneritinnal value SY
? 7 to repress infiaoccuiicncu,mg inflation ISit not only Ulisatcepts hive hid operational vaiue. Direct controls ^
iofacforv
but
leads
to futito
tually the political integrity of ures. Here is where we must en¬
Adam Smith is remembered for +;on
nnd escalator clauses to acm
I
i
.1
+2
11
+«
any country,
courage them continually to hold the free trade noiicies hased unnn
'
j
escaiatoi clauses 10 ac efforts to assign the blame to
the line—to balance expenditures
his devastating
attack on merar9 now/?£- particular groups of people,
ms
attacK
on merHousing-Mortgage Market

that these precise
trends and developments are high
will

tell

you

nomic and

with revenues—with the

Outlook

that

light

the

general

look

ahead which we've taken for the

whole, what can be
specifically about hous¬
ing and -mortgage market pros¬
pects? Here are a few observa¬
tions:
/■
i''v

economy as a

said

devasthtfns

assurance

entirely cognizant of

are

cantUism.

fiscal policy

the

their interest in re-election.

Another

objective

must be to
resist unwarranted wage and sal¬

con?!nodate to xt'
erany seen as evasions

Keynes is honored for

ploy

consequences

ment^ reqvii reef eonsdous ^
government

terventlon

Rein??
sneciilists
in
the
alioincreases in excess of demon¬
productivity gains. Still cation of
relent¬ might be expected to deploy their
lessly to keep all other costs of
(1) Residential construction doing business under tight control,
looms as one of the nation's most not merely when a recessionary of the economic
journals in repromising growth industries over storm is blowing.
cent years suggests that we are

ary

resources^Economists

strable

another target is to drive

of the
The reasoning that un-

problem.

sue*,

leaders-

*
execu-

business

derlies these conclusions has been

publlfdlC

iuTlyTl/v/here an/ need
result,
not be repeated here. < Despite cusslon of the probiem become*

general agreement that a stable emotional and remedial action is*
P^e level fosters economic stultified
The problem really
growth and should, along with arls'®s . from
s<]neeISj2

m^cfiw waynYetna"canning fuU employment and free mar"

the decade ahead.

union

«ai?£?ressive"

n<,

33
gg
"monopolistic"

pohc-y/"and™ frmn

the mis-

kets' b? an accePted goal of pub- behavior of certain people,
policy, surprisingly little has
Let us view creeping inflations

been written on ways and means in a long perspective, develop a
—theory to account for it, and tjiea
ket will be influenced substanti¬ more
economic problems of our counthft the ^£v
deduce from this theory a feasible
ally by the degree of inflation, cal and economic issues so that try. There are many skillful re- nomic problems of hoaur ts^cietymarT: 7i) program of public policies to preWhich will discourage home pur¬ government through its elected finements of theory. Problems of How to create sufficient consumer de- vent it in the future. This papei*
In

(2) The actual size of the mar¬

the

short, all of

us must go on
taking a much
determined stand on politi¬

offensive

chases by driving up land prices,

officials

raising building costs, increasing
interest charges, and discouraging
saving by both borrowers and
lenders. More people may seek

lessen incentive

refuge from inflation in housing
investments,
but an
increasing

supply of homes as well as struc¬
ture and neighborhood
obsoles¬
cence will make this more hazard¬

the dangers

particular

responsibility.

will

execu¬

buyers

already have

wage

well

story about the personal
as

national dangers of in¬

flation—or in

Hanly
Sponsors Program

(4) Unless it becomes possible
to trade in houses more easily, the
housing industry will face a seri¬
ous roadblock in realizing its

growth potentialities. The oppor¬
tunity for profitable development
of

trade-in house mechanism in

all major

cities is tremendous.

lations

can

changed, and also

that mortgage investors

will take

tance to them.
On

the

speak

"Economic Outlook for

195.9."

On March 18th at the

There is excellent reason to be

optimistic about the future of the
housing and mortgage market.
Such optimism presupposes, how¬
ever, that we are all prepared to

"Business

look," and
be

held

and

Market

investors forum will

the

Jackson

office1, 83-18 37th Ave.,
rent Market

Out¬

Heights

Opportunities."

"Cur¬

point where it threat

tween

be-

public and private expenditures so

put

end

mcnt

with

"public poverty"

Z
of

demands

"Zd'emb?™

back many years tZ°rdme?e,y°
penetrating analyses of industrial equipment. Foreign investment
of Schumpeter's "Cani- must be increased by many billions a

find

to
the

scone

•

i+e
its

rvF
of

Society" is the only work

ncpfnl

ite

useiui

ItS

hnr-nmP

tvnr»

type

seller"

i„

recent

fhp

ind

nil-

ine

ana

thor's brilliant rhetoric,

oest

Despite

years.

inciohtc

msignts

"hpctf-

DCCOme

this work
...

the

advances

serve

less

emphasis in the U. S.
today.

economy

failing

trillv important
truly imnnrtant

(hp
tne

nomic policy issues of our
,

and

the

would

impair

American

1 New

1942

society,
.

eroeco

•

making recommendations

which
of

thesis

erroneous

(1st

York:

Harper

credit is certainly
"f

not as
"nhVv

international

regulation,

Vestment,

tena
case

trade and

stimulating

good

exists for regulation of its terms

government. However, in view
facts that o"tstand,n8r consumer

ment

in-

credit forms only about 1

of the
mstals

month

consumer
expenditure, and forms a
much smaller fraction of consumer assets

than

did

viewed as

decade

ago,

cannot be

major destabilizing factor.

large relative
increase in public expenditures would be
Galbraith

asserts

that

u,h.""o.N

'ha^™

tion but have risen since 1947 as a per¬
centage of the total. While our happiness
might
be greater if the governmental
percentage were larger, the figures do not
indicate that Americans have kept their
governments in penury. The choice between
public and private expenditures
may be tipped
in favor of the latter by

0st^» r.7b/roi!tici?

Brothers,

fill

of Creeping Inflation

formulating

theory

;

creeping inflation, we do well to
recall
some
simple
arithmeticInflation is defined as a signifi¬
cant rise in the Consumers Prico

index, an average of the prices

sold in a sample of letail estab—
lishments in 46 cities. Now if wa
are to avoid inflation in the shortrun, when some individual priceai>
rise it is clearly necessary tha*
inflation ill the long-rUll, if lh®

of prices lifts during th»
expansionary phase of business

technological
does

Because consumer credit
amplify business cycles, a

progress.

"log-rolling" and the absence of a direct
personal link between the benefit and
cost of public services.
Bringing about
an expansion
of governmental expenditures must surely be considered one of

and

be required
details.

average

Gal-

Ed.)

Chicago:

the vitality

economy,

University
of
Chicago
Press,
1947.
A collection of Simon's
writings between 1934 and 1945.
2

it
Consumer

productivity and output de-

that

will

in necessary

Theory

The wo?fc

the brush, the WOTK
economists and policy

tb5"i'Z!other individual prices shall deworld." Yet"'" '"/aTviTcd
ea"y!
eline. And if we are to avoitj

SVk"
:

many

of, 300 commodities and service*

population,

exploding

Ninety-five billions of dollars is required,

One must go

level,

stable price

StlOkes Of
makers

HoV°toP acfTev/T^

lor^he

adays
farewell addresses
of
out-going presidents of the
American Economic Association!

irlpnfifv
Identity

■-

increasing

without

demand

debt to

geoning literature on the develit is simply untrue that the u. s.
opment of primitive economies.
thlnu?as! <££
But applications Of economic lea— omy requires vast amounts of capital for
soiling to basic issues of public education, transportation, resource develnolicv seems to be reserved now- opment, housing and community facili-

Affluent

11th

March

improvements rather than

analysis
and
business
decision-making. There is a bur-

ards.

courage

en¬

have been made in op-

advances

—

adhere to past specification stand¬

fresh look at building and

and

HEMPSTEAD, N. Y.—Edwards talism,
Socialism
and
DemocHanly,
100
North Franklin racy" i
or
Simon's
"Economic
Street, members of the New York PnllVv for a Free Society" 2
to
Stock Exchange, are sponsoring a
cite
two
examples.
The most
series of meetings at their local
prominent recent effort to deal
offices designed to bring to the at¬
with contemporary economic polit
tention of Long Island investors
icy. compi ehensively
is that of
information that may be of assis¬
Professor Galbraith, whose "The

Hempstead
office Saul Smerling of Standard
& Poor's Corporation will speak

fiscal policy, mocompetition.
Great

theory,

Valley
Stream office (1 Sunrise Plaza),
Paul Vahler, New York State So¬
of tradtional building materials as
of
Certified
Public
Ac¬
well as manufacturers of chemicals ciety
will
speak
on
"Tax
and light metals point to signifi¬ countants,
Saving Possibilities and Your In¬
cant
improvements
in
housing
vestments." On the same date at
construction and costs, provided
the Flushing office, 41-64 Main
government codes and many rigid
William
J.
Dacey
will
and outmoded specification regu¬ Street,

Major research expendi¬
tures by both the manufacturers
(5)

notes

orations

Edwards &

the transactions for new ones can

consumer

are

One

liopoly

full

Scto!

extensively dispenetrating

contributions to monetary theory,

cussed.

tives must take the lead in telling

homes which must be sold before

be completed.

eco-

the

everyday language,
of rising costs of liv¬
ing and shrinking buying power
of the dollar.
Yes, there's a real
ous than generally realized.
selling job to do to our business
(3) Mortgage investors will find colleagues, neighbors, civic lead¬
it more essential than
ever
to ers, and government representa¬
Frankly, we have no al¬
view the housing market in its tives.
entirety—both new and old houses ternative. Won't you help?
—because
the vast majority of

prospective

not' stabilization

abdicate fiscal

Financial

thinking and writing as much
should about the primary

not

less
policy
our

difficult

problems

public

Continued

page

creeping in¬
flation is well expressed by G. L. Bach,
Inflation-A
Study in Economic Ethic
and
Politics
(Providence, Brown Univ»
Press,
1958) and by A. F. Burns lift
U. S. Monetary Policy (New York: Amer-.
ican Assembly 1959).
My own views on
the economic effects of creeping infla¬
tion appear in Harvard Business Revieww
May-June 1957 and Jan.-Feb. 1958 anal
in Problems of U. S. Economic Develop*
ment, Vol. I (New York;
C.E.D. 1958>
p. 153. S. H. Slichter and A. H. Hansen,
on
the contrary, accept creeping infla¬
tion as a desirable or at least inevitable
4 The

concensus

against

concomitant of economic policies to

full employment. Cf. Hansen, The
American Economy (New York: McGrawr
Hill, 1957) and Slichter, On the Side of
Inflation" Harvard Business Rev,euft
tain

^ThifcSsion

i,
by m
reading of papers submitted to the Join*
Economic Committee of Congress, beo
The Relationship of Prices to
Stabdity and Growth (Washington. Govt.

Printing Office, March 31, 1958).
.
6 Even when the Federal budget 19

balanced on a consolidated cash basis.

(1218)

fte

The Commercial

Continued from page

union membership, picketing, sec¬
ondary boycotts, union support of
price-fixing agreements, and in¬

Will Good Economics Prove

ternal union

activities

To Be Good Politics?

the

growth

arithmetic demonstrates the need
for

two-way

flexibility

individual prices and in the

aver¬

of prices if we are to avoid
creeping inflation.
It
indicates
avoidance

inflation

quires attention to what

may

of our economy as well as to the
maintenance of aggregate demand

appropriate

level

through

The

creeping

inflation

which

has marred the performance of
the U. S. economy in recent years
has resulted from two major de¬
fects:

the

ments

outline

now

the

ele¬

public
policy which will help solve the
problem
of
creeping
inflation.
Because

program

to make the U. S. economy struc¬

turally

flexible

with

respect to
and movements

individual prices
of

resources.

Recent

efforts

stop creeping

inflation have been
disappointing
because they have involved reli¬

only upon restrictive mone¬
and fiscal policies, without

ance

tary

concurrent

actions

increase

Structural flexibility. Highly re¬
strictive
monetary
and
fiscal
measures, which cut governmental
expenditures

the

mentary

fuller

attention

than

im¬

provements

monetary-fiscal
they
do
not
exhaust the subject, I shall focus
attention on necessary reforms in
policy.

Although

the

anti-trust

tension

than

approach

tenance of

frag¬

the

main¬

competitive order is

laws,

kinds

all

their
of

ex¬

I'olicy

apparel have 38% of
weighting in the Consumers

Price Index.!9
such

most

Because

items

are

indirectly
affected <
agricultural policies,
that

prices of
directly or
by
current
it

"parity" are a potent source of
inflationary pressure.
Our agri¬
cultural policies have operated to
maintain

raise

the

prices

food and fiber in the face of strik¬

ing

technological

have

reduced

advances

costs

that

production

people will

The

indefinitely.

restoration

flexibility is basically

matter of

creating the framework for work¬
able competition in
many markets
from
which it
is
now
absent.
Competition in open markets is
the fundamental

free

versus

per¬

mobile,
enough prices will decline quickly
enough

when aggregate demand
is shrinking and
enough resources
will move into more
remunera¬
tive industries, so that
sensitive
monetary-fiscal
restraints
will
serve

to prevent inflation
without

creating
ment

"pockets" of unemploy¬

and

economic

Conversely,

stagnation.

sources

into the most urgent
u$es,

"bottlenecks" and inordinate
price
increases.
If the people of the
United States
squarely face the
need

While
enforced

all

The

main

should

segments

economy, labor
are
of greatest

union

the

activities

present

legal

concern.

instruments

for

enforcing

At the

same

competition, the Sher¬
Clayton Acts, were de¬
signed to apply primarily to busi¬

workers
tracts

About

four

factors.

Being exempt from the
anti-trust laws, unions may do
many things to "restrain trade"
businessmen

avers

that

"indirectly, unions

businessmen. 9

Because

price

level

powerful.

regulation
of
labor
therefore necessary to

the

ployed,

labor
as

price
and

level,

labor

efficient

ways

markets

annual

production,

differ

con¬

requiring quarterly or
adjustment
of
wages

nual

least

productively
average.

96%
em¬

ap¬

Agreements Act. Yet
there have been lapses from the
path of virtue, in our tariff in¬

creases

watch

bicycles

and

quotas

our

There

are

now

Index

consideration

tually

the

an¬

vir¬

every wage determination.!*

bargaining

power

unions

small

and

ganizational

strikes,
8

undue

Removal

the

and

economy

many

These

policy action.

between

For

upon

rigidities

many

Public

needy

cost of

the

giving

affluent

little

one.

The

the

point

help

game

has

that

the

supporting farm prices will
than $5 billion in the

current fiscal

ments

year, Federal
comprise about

will

pay¬

40%
of net farm
income, and the Fed¬
eral-held surplus will total about
$9 billion by mid-1959.

students of the farm problem now
agree—calls for gradual removal
within
farm

definite

limits

supports, acreage al¬
lotments and marketing controls.
program

should

embrace

relocation and retraining grants to
assist the submarginal farmer to
enter

ment

and

promising

should

minimum

employ¬
him

assure

income.

must

em¬

to dispose of ex¬
surpluses.
A programmed

a program

Chamberlin, Labor

our

tionships and
pri¬

programs
and
geo¬
not

requires

Unions

tension in

and

Policy
(Washington*
American
Enterprise
Association, 1958)—.18

Average

international rela¬
diminish inflation-

Retail

capital

astronomical.

factors

Prices:

international
apart

from

Calculation
Techniques and Prob¬
U. S. Dept. of Labor Bulletin No.
1182.
June 1955, p. 62.

the

Bureau

Riley, /'The
of

Labor

Price

Indexes

Statistics"

Relationship of Prices to Economic
bility and Growth, op. citi, p. 113.

are

they must
retain

have

become

our

be/-

ecO-,-

them

The

•

formidable^

world

have

post-World

markets./

relatively?

War

equip- j"

ment than the U. S. posesses.

f j,

themselves how rapidly they wish
1
their economy to grow, and then'1'
consider what kind of tax system
be consistent with this

will

rate/ '

of growth. While the present Fed-,:'"
eral tax system possesses valuable.

.".built-in"

counter-cyclical

pow¬

ers, as a result of its very heavy
reliance upon progressive
income)
taxes, it lays so heavy a burden
/on
both the
incentives and the)
:

ability
ment

finance

reduce

risky invest-"1
the rate of ; •

capital formation, innovation, and-"
economic growth.
; •
/

quite

contribution

the

;The

main

lines

Federal

stability of

tax

reform

necessary-;'

are

reason-;;

ably clear—

Stockpiling
Revision

Federal

stockpiling

■

defense

programs

First,

reduction

the

top;

bracket personal income tax
realistic levels.
The 91%

materials
to the fight

would also contribute

rates:

rate*

is really a "phantom"' rate, paid
by/
few and producing little
revenue,*-

against inflation.
Federal" stock¬
piles
of
"strategic, and critical

while

materials"

and

zinc

(in which copper,/lead,
platinum are important

and

items)
lions

June

government

lions

valued

were

30,

also

'$6.4

owned

these commodities
when the concept

World

War

World

War

III

Most of

security"

make

imposed

now

with

sons

work-,

unstable

upon

per-;

annual

in-

(usually derived from'
entrepreneurial activities) in com-?
parison with those having stable
:
incomes
(usually from salaried! '
employment).
comes

/ resemble
the light of
potentialities,

able system of averaging personal
incomes over periods of, say five
years.
This
would remove
the

penalty

purchased
prevailed that

would

II.

There is

were

present nuclear war
these huge stockpiles
tional

$3.3 bil—

deterring productive effort1
distorting investment.
;

Second, inauguration of

bil¬

1958,- and the-

of machine tools.13

little

danger that "na¬
may
become a

cloak for governmental price-sup¬

Third, reduction of the rate

corporate

income,

now

52%,?,.

porting operations for many com¬ which makes the Federal Gov-n
modities, as has already been the ernment, in effect, the majority,
case for lead and zinc.
If so, ad-; stockholder of every business
cor-:

ditional

elements

the

price

inflexibility poration of substantial size.

indexes

created.

would

..;

.^,

Fourth, modernization

a-gers

from

participation ;in
Western
hemisphere price stabilization
schemes

and

fail

should

in
not

schemes

the

operate
our

t i

m e s

under

tion
and

guise, especially when they con¬
to
inflation t and- impede
*

Reform of the Federal-tax

tern is
effort

important part of
increase

the

write

off

was

the

•'

made in "this direc-J
revisions of 1954;

tax

1958. but the basic U. S. rules'
*

illiberal

com-.

trialized countries.
.

These

Federal

tax

would stimulate economic

reforms',
growth,,

sys-j help to reduce costs, and contriv.
any.

efficiency

Sta¬
13 Annual

continue

/
,

latitude

parison with those of other indus-;

tribute

Tax Reform

of depre-'

any-

economic readjustment.

wider

Headway

tenets,
Clearly, we

own

fixed assets and thus foster earlier*

ground that they
end.

...,

replacement of obsolete facilities.'

basic economic

our

ciation laws to give business man-'

The U. S. has wisely refrained

violate

Americans would be wise to ask».

con¬

Report of Office of Civil and
f»r
Economic
Develop-' Defense Mobilization.
Submitted to the
Toward A Realistic Farm Program
Joint Committee on Defense Production.
York:
December, 1957).
Washington: Nov. 30, 1958.

12 Committee

went,
(New

Some

dollar.

and

/
are?/

forget that other Free World;

nations

liberal

policy,

real
to

trade

the

it would make
the

years,

leadership

competitors

mem-;

Collection

lems,

11 H.

of; trading

constitute

for

case

next 50

requirements
Yet

duction and influence. Nor should!'

throughout the world in
dispose of its products.

These

the

in the face of - '
rapid Sino-Soviet growth in pro-!"'

raw mate¬
rials to feed its
growing industrial
machine and must find ever
larger

vincing'

nomic

ing amounts of foreign

met

the economic growth considera¬
tion that the U. S. needs increas¬

markets

"moderniza-f
future capital-'

plant to serve the! '
population that may

investing relationships. There

which

within

closely bound to¬

network

this

industrial

our

needs

powerful

its

time

price

gether
and

when

are

iu,

;
add

im¬

costn

1955, 1956, and*

years

double

Fre^ World

strengthened

sense.

A rational agricultural
program
—as the CED and other
objective

additional

example,

retirement

E. H.

while

continued

big isting

impede occupational
graphical changes of
employment, by
vesting the employer's contribution
the
employee.
This
problem
9

the

employers, or¬ return to free-market agricultural
jurisdictional prices would remove a source of

structural

and

prob¬

subsidize

farmer
to

inequality of brace

restrictions

suggests

policies

ber nations

boom

and

movements

indus-*> /

found that the

tion backlog" the
requirements for replacement,
in/'*
light of an accelerating pace '.-1
of technological change, plus the1'
capital •: required for additions tot-'

Recip¬

CPI,land this. is

movements

Such

commodity markets,
and a fresh
body of law needs to
be developed to deal with
their

public attention.
at

from

pension

that

Public

unions

workable competition.

Labor

tend

mean

force

may

assure that
their activities will be
compatible
with the public interest in a
stable

vate

do.

already have more influence in
raising costs and thus prices than

structural

improve monetary and fis¬
controls, we will succeed in

7 Defined

cannot

Indeed, Professor Chamberlin

economy as well

cal

can

the

manufacturing

was

a*}!

©£-

the

rocal Trade

wage

million

employed under

are

and

the

/If

....

apparel.

agreements.

competition

lines

increase

flexibility of the

survey

1957.!4;

pol¬

renewal

Hill

replacing all obsolete facilities

three

The recent record of the United
States in international trade

icy has not been bad.

been shown

ern
and efficient type would be',i;
$95 billion—a sum equal to all; of/rui
the
expenditures on plant- and-ov
equipment by American business es
(for additional capacity as wellt/ro
as
modernization)
during
theiyjo

and ask them to
expose their pro¬
ducers
to
our
competition, we
must be willing to receive their

plaud the

••.

with equipment of the most mod4h;

from

.'--•v

•

cost-reducing*
industrial mod-***;

McGraw

tries.
of

products in foreign countries,

our

industrial

our

prices.

have

American /

market

mental intervention.

clauses

pressures.

expansionary special
problems.
monetary-fiscal policy will more
lems include gross
rapidly induce movements of re¬
enabling total output to grow for
a longer time
without
producing

recent

private

income comprises 62% of national
principle of a income, it is evident that
the im¬
centrally-directed.« pact of wages on the
consumer's

economy.
If competition
vasive and resources are

expect to

time, our policies have built up reasons for more energetic action
activity,
and
other
remove
trade
restrictions.
huge surpluses, whose disposal to
measures
to envigorate competi¬
abroad impairs friendly relations There is the ideological consider¬
tion will help to make individual
ation that the U.
with other countries. Farm
S., as primary
prices
prices and wage-rates more re¬ would have
declined in free mar¬ exponent of competitive Capital¬
sponsive to changes in demand,
kets, helping to keep the cost of ism, cannot preach competition
will
augment productivity, will
living stable and removing some at home and reject it from abroad.
moderate the wage-price
spiral, of the wage-push exerted on costs There is the national security
and thereby reduce
inflationary via escalation
consideration that the

which

structural

potentialities

ports of Middle East and Cana¬
dian oil and Japanese textiles and

farms now produce
slow,'
While
inflationary wage agree¬ 91% of the value of marketed
competition is not pervasive, and
enough individual prices do not ments have received most atten¬ farm produce.*2 it is
impossible
decline
quickly enough in the tion, union restrictions upon en¬ to provide the remaining 56% of
face of lowered
try of workers into trades, and the
farmers with a satisfactory
demand, a highly
union
restrictive monetary-fiscal
working rules to reduce income by means of farm
policy
price
Will
productivity
produce
persistent
("feather-bedding") supports, because they do not pro¬
unem¬
are
also
important inflationary duce
ployment. It will require a sacri¬
enough
for
sale.
Present

not accept

competition

inr,'

i.mmense

ernization

price level in a world in which
the leading trading nations seek
monetary
stability.
The
U.
-S.

and

■:

The

is the best safeguard of high pro¬
ductivity and a stable domestic

abroad.

costs

down

do¬

and
would
have brought lower
prices in the absence of govern¬

A new
raise
policy for agricultural
taxes, and make credit expensive
adjustment is urgently needed for
ness
firms
and
to
and hard to get, can
commodity many reasons.
probably stop
Output per maninflation. They reduce aggregate markets, and labor unions and hour has been
rising more rapidly
demand so severely as to create most professional and cooperative in
agriculture than in the rest of
unemployment, hold down prices, organizations are exempt. Mean¬ the U. S. economy for at least 20
and moderate wage agreements while, some unions have acquired years.
Because technological
great power over labor markets,
to a point where the
wage-cost
progress has made the large com¬
which they exercise in a number
push on prices is diminished. But
mercial farm relatively efficient
in an economy where resource of ways to push up prices or and the small
farm
inefficient,
to
prevent
prices from falling. 44% of our
movements have become too

fice of normal economic
progress
which the American

modernization

economic

man

bone,

keep

the

machinery, and thus help to keep

prices and shelter ineffi¬
and monopoly.
A' truly
international trade policy

help

means of
financing
development and the,

interactional

mestic

liberal

flexibility

that will offer both
and

research and

These

clear products.

efforts to support prices
basic
farm
commodities
at
our

d i ments

unsubsidized)

Food and

the

centives

trade.

ciency

structural

measures

An essential element of ah anti-

p e

Thursday, March 12, 1959

inflation-prone. In tax reform, the
main
emphasis should be upon /

be great.

inflationary policy is reduction of
tariffs, import quotas and other
m

U. S. economy, and to make it less

International Trade

and

taxpayers
as much as the present policy—
which is most unlikely—the gains

makes its economy strong by ex¬
posing its producers to fair* (i. e.

Agricultural

discussions

merits

rather

needed.

flexibility has
relatively little attention
of
inflation,
it'

received

prehensive

rational

cost the

program

would

event, it is difficult
to understand how objection can
be made to the principle that antimonopoly legislation should apply

structural

first, insufficiently flexible
five
fields
of
economic
policy:
monetary and fiscal measures to
offset cyclical changes in private anti-monopoly;
agriculture;
in¬
ternational trade; stockpiling; and
demand and to hold aggregate
demand around full employment Federal taxation. 8
levels, 7
secondly,
insufficient
Anti-Monopoly Policies
flexibility in prices and in move¬
Actions
to
make
competition
ments
of
resources,
caused
by
more
vigorous and pervasive in
inadequate competition and
by
the United States are an
impor¬
the interference
of
government
tant part of a program for pricewith competitive
markets.
The
level stability. Stern enforcement
remedy lor creeping inflation re¬

quires both more sensitive and
powerful monetary and fiscal ac¬
tions to regulate aggregate
de¬
mand, and governmental measures

In any

moderate gains in
to all kinds of private economic
flexibility will suffice activities whether carried on
by
keep the price level reason¬
businesses,
unions,
professional
ably stable, so long as produc¬ associations,
cooperatives, or any
tivity rises steadily.
other individual or group. A com¬

time.

depreciation

Even

Let

farm

have

structural

re¬

be
called the "structural flexibility"

dollar.

relevant law would

age

that

full
potential
of
without bringing on a
our

debilitating

made

Even if

ary pressures.

to be developed on a case-by-case
basis.

realizing

it is necessary that the
average level of prices shall de¬
cline
at
other
times.
Simple
cycles,

Some union

illegal;
imperfectly understood

others dre
and

affairs.

should

a^nd Financial Chronicle

bute to price-level

stability.

Our /'

state and local tax systems should
*

14 "How

izes"
p.

21.

and

Business

Why
Week,

Industry Modern-.
Sept. 27,
1958,*

Volume

189

reformed'.with

in view.

ges
poses

5828

Number

the

Counter-cyclical
•

* J[V

discussion

understand
welfare turns in

their- own

that

the

tions

upon

flexibility

open

trol.

the

knowledge

time

the

Continued

the principles
of economic freedom and financial

probity.

and

between

a lag
action

rective effect

available

statistics

length,

being

during the next decade,

ing

counter

cyclical

and.

in¬

Here

urgent

The

i
Increasing the potency and
availability of counter - cyclical
policy measures also requires re¬
form of certain monetary and fis¬
cal arrangements.
It is likely, for

that

legal

reserve

revisions

Decade Seen

$630-billion
according to the building magazine
is iri for a spectacular

Normally

Int'l Inch

inch

international

Machinist,"

"American
25.4

the/

Steel Orders Arriving

Third Quarter
v

."Iron Age" said these buyers realize the odds favor a steel
in third quarter and want to be at the head of the line
when it'.ends. If there is no strike, they figure they can cancel
strike

orders

they don't need.

steel buyer

one

things straight.
"By April, the tempo' in steel will be
time in steel history" the magazine said, in

the area

of defense.

uation this

stronger than at any
summing up the sit¬

way:

Economics and Politics
V
(.1) Demand is spreading to all products, including railroad
.Creeping i h f 1 a t i o n can be ;
steel and structurals. /
"
stopped in- a free and vigorously
(2) Steel order carryovers are mounting. What this means
growing economy only by reforms,"
is that in some cases the mills are finding it impossible to deliver
in many fields of public policy.
some
orders in the month promised.
As a result, some March
TJie political obstacles to these re- ,.
forms are, indeed, formidable: In-//^business will spill over into April, April in May, and so on.
(3) These carryovers will tend to offset the effect of duplicate
ffation raises the most difficult orders some buyers are placing with more than one mill.
So the
political problems because it pits
bottom isn't likely to drop out of the steel market should there
the general interest in a dollar of '
,

and articulate special.
interests. -They include the- "farm organized

peaceful settlement of steel labor contract

New

Steel Output

•We

lobby" with a desire for high and ~:
rigid supports of farm prices; oil:

with builtinflation, import

mining interests

profits

quotas,
grams;

•->

from
and
stock-piling - pro¬
union officials with a de¬

and

15 This

pants

business
was

an-

Oct.„ 16-19,

the

groups

concensus

United

first

American Assembly meeting; '
1958.
See. U. S. Monetary .

pace

half.
Mills

partici¬

Policy (New York: The American Assem¬
bly, 1959) pp. 116, 222. For a contrary
view see Ascher Achinstein. Federal Reserve
Policy
and
Economic Stability,
1951-57.
A study Prepared for the Com¬
mittee on Banking and Currency. (Wash¬
ington: U. S. Government Printing Of¬
fice, 1958).

States

steel

than

metalworking

to keep

seeking
of

made

ever

demands.

record this year in the

If the trends continue,
program

progresses

prime grade of steelmaking scrap
'rne anamoiy of

the week ended March 7 in the
produced before, "Steel" magazine

weekly

commented.

Steelmen are struggling

with customers' demands for steel

deliveries in the
,

turned

out

2,562,000

net tons of

steel for ingots and

castings with operations at 90.5% of capacity, up 1.5 points. In
their best previous week (Dec. 17-23, 1956), they produced 2,525,000 tons.
Rates were up or held steady in ten out of 12 steelmaking districts.
Output is topping consumption, "Steel"
..

said. The rush to buy

be explained by these factors: (1) Users cut stocks too
much fast year, and they're trying to bring them up to normal.
(2) "Normal" inventories aren't enough because mill deliveries
are
slower than usual.
(3) As usage rates increase, inventory

steel .cap

Iron

and

to Soar

Institute

Steel

announced

the

that

operating rate of steel companies will average *161.9% of steel
capacity for the week beginning March 9, equivalent to 2,600,000
tons of ingot and steel castings (based on average weekly pro¬
duction for 1947-49) as compared with an actual rate of *159.1%
of

capacity

2,556,000

and

week

ago.

of the
147,633,670 net
percentage for the week of March 9 is 91.8%.

of the Jan.

utilization

Estimated

tons.

tons

output for March 2 week was equal to 90.3%

Actual

1, 1959 annual capacity of

For the March 9 week

month ago the rate was

*147.6% and

production 2,371,000 tons/A year ago the actual weekly
was

produc-J

placed at 1,463,000 tons, or *91.1%.

*Index of production is based

average

weekly production

for 1947-1949.

Car
A

Output Up 19% From Year Ago

14.% gain in new car sales marked Feb. 21-28 as the

auto

industry's best 10-day period since December, "Ward's Automotive
Reports" said today.
r
/

entire February

February last
26% increase. It swelled January-February purchasing to

405,300 new car sales compared with only 321,000 in
year, a

833,000,

19% from last year.

*
.j

•

The February sales included 130,200 in the closing 10-day
period that averaged to 18,600 a day compared with 16,344 Feb.
11-20 when 147,100 were sold.
Feb. 11-20 had two additional >

"Ward's"

the U. S. in the week
in mid-January. Esti¬
133,363 automobiles, 4% more than last 1

said that car production in

ended March 7 was near the 1959 peak set

mated for the week were
week

(127,783) and the best yield since Jan. 12-17

(135,953).

Responsible for the increase was Chrysler Corp., which had
all of its assembly plants on five-day schedules for the fiitst time
in seven weeks. The company programmed its highest output of
1959—over 21,000

"Ward's"

said the other

cars—and topped last week by over 50%.

corporations—General Motors, Ford

Co., American Motors and Studebaker-Packard—followed
schedules similar to last week.
Only three car-making plants
Motor

operated six days: AM in Kenosha, Wis.; S-P in South Bend, Ind.;
and Ford Division's San Jose, Cal., facility.
Working four days
were Chevrolet factories at Baltimore, Md., and Tarrytown, N. Y.

output in 1959 at 1,this week, 20% higher than cor-» /
responding 1958 (965,418). Truck volume is 28% higher than last,
year, 221,154 units against 173,309.
Production of trucks this week was estimated at 23,363 units,
down 7% from last week (25,104) and the smallest weekly yield '
The

statistical publication reported car

157,603 units through the end of

seven

weeks.

Electric Output Down

Slightly Below Previous Week

The amount of electric energy

distributed by the electric light *>

industry for the week ended Saturday, March 7, was
estimated at 12,945,000,000 kwh., according to the Edison Electric
Institute. Output the past week was below the level of the pre¬
and power

second weekly decrease below the
week ended Feb. 21.
For the week ended March 7, output decreased by 27,000,000
kwh. below that of the previous week, but showed a gain of
1,152,000,000 kwh. above that of the comparable 1958 week.
ceding week and marked the

13,259,000,000 kwh. total recorded the

Car

Records Anticipated

reported. The week's record marks only the beginning of a series
of records to be set in the coming weeks by the steel industry,
the

sire for unbridled economic pow¬
er;

set

may

selling days.

... :

the Na-'t

American

The

sky¬

rising ingot rate and a decreasing scrap price can be accounted
for by mill satisfaction with current scrap stocks and increased
use of hot metal in the steelmaking mix.

put it: "What's the good of

...,

many

industry

The statistical service said the increase gave

Some steel users already are placing orders for third quarter
delivery, according to "The Iron Age," national metalworking
weekly. \
:''i'1'

;

and

construction

"Steel's" composite on the

having inven¬
tory "during a strike if you are stuck for a month at the end of it?"
:
,The metalworking magazine said some steel users are having
•
sibility. A system of automatic.: trouble Jbuilding inventory as a strike hedge despite the recordbreaking production pace of the mills.
adjustments in personal incometax rates
"Our business is a lot better than we thought it would be,"
geared^ to :.changes in':J
worries one metalworking executive.
"As a result, our inven¬
price or employment levels is an¬
other concept, worth study.
" : f;: tory js building up at a slower pace than we had hoped for."
<, -For example: American Motors Corp. last month reviewed its
Finally,, we need to attain a
better
coordination of stabiliza-,
production schedules, added 40,000 units to its March, April, May
tion policies and actions within !. program/: Result:
Its steel usage has gone up from 12,000 tons
the Federal Executive, so that the
per month-a year ago to 32,000 tons per month today.
monetary, taxation, expenditure,
*
Another automaker has raised its 1959 production goal by
lending and loan insuring opera100.000 upits.
Its purchasing agents are now sparring with steel
tions
of
government
reinforce
mills for an increase in allocations in line with stepped-up output.
each
other.
One means to this
"Iron Age" said that a large mill reports last week's new
end would, be the establishment
orders set a two-year record. Its experience is probably typical of
of a National Economic Council
what is happening throughout the steel industry.
Incoming ton¬
under .the
chairmanship of the
nages are so heavy that the mills are having a hard time keeping

against

material

millimeters,

The changeover in production to the new international inch
will effect customers to the extent of the accuracy they require.

to the President
to change personal tax liabilities
within specified limits is one pos-

stable buying power

construction

tion

exactly

power

the

planned, close to $53 billion should be spend for new construction
put in place this year. Some of the $4 billion increase over 1958's
total will be accounted for by rising costs. In the last year, build¬
ing costs have gone up about 4%. But physical volume should
increase by close to 3% over 1958.

in producing gauges based

by English-speaking countries, will go into official use
It is approximately t\,vo millionths of a millimeter shorter
than the U. S. inch, 1/7 millionths longer than the British inch
and the same size as the Canadian inch.

institutions under
some
general monetary controls
would be salutary.
Such matters
arc now
being examined by the
Commission on Money and Credit.
In the execution of fiscal policy
a greater flexibility of tax rates is
desirable.
A delegation of Con¬

President,, analogous

pictured

scrapers, bridges, and ships, steel now can be used more widely
in the leisure and pleasure markets. This new product adds the
warmth of color and feel to the strength of steel.
'

Steel Production Continues

July 1.

bank, financial

tional Security Council in

are

Vinyl-coated steel sheets, a new product announced today by
U. S. Steel Corp., is an example of how the scope of steel is being
broadened by research and development, the magazine commented/

adopted

•

system for commer¬

/•• '

•

in tighter supply. Demand is reflect¬
ing a marked improvement in curiem consumption and con¬
tinued emphasis on inventory building.
Knowing that bar mills
expect little third quarter business, some consumers are making
this proposition: They'll place orders for August and September
delivery if sellers will guarantee to ship at today's prices.
Bars, for instance,

international inch, reports
magazine of metalworking.

new

cial banks- and placement of non-

gressional

Strike fears encourage

(4)

/-.

declined 50 cents last week to $42.33 a gross ton.

No Problems Adjusting to New

on .' .the
new
McGraw-Hill

subject of research.

example,

industry

Manufacturers see little difficulty

v.,

actions-

could be improved if we knew its

magnitude.

£"

value of work put in place, "Steel" said.
and
if the government's road building

"Forum" economist Miles Colean,
spending for new construction will reach a whopping $75-billion
a
year, a rise of 53% over last year's mark.
,7fv The magazine adds that its projections for the next decade
"may be too modest." They are based on conservative produc¬
tivity and population increases, both of which could well exceed
estimates, thereby sending the building figure even higher.
according

1968,

institutional

the

S63p-Billiori Building Boom in Next

struc-f i''•*r
/
ture of the economy, yet the tim- ;
herent

The construction industry
boom

the economy. The

better economic analysis. The
third kind of lag probably cannot

cor¬

reduced

page

Pennsylvania.

and

California,

gov¬

its

and

economic

Here lies a great chal¬

lenge to the economists and policy
ma Kcrs Of bur time.

hedging.

"Architectural Forum."

first; !two lags could be reduced
by ; more accurate and promptly

from

ernmental

poration equipment industry and increased activity in construc¬
tion.
Claims fell noticeably in New York, Michigan, Illinois,

involves three kinds of ;
time-lags:
a
lag . between
the
emergence of a stabilization prob¬
lem?
and
its
identification
by
policy makers: a lag between
problem identification and policy

action,

the

process

industrial

advanced

nation operated

The State of Trade and

stabilization-

economic

The

States must

example

in¬

lags

volved, by augmenting their po-t
teney
and availability for use,'*
and [ by better administrative co¬
ordination,

The United

under

being constantly-revised.

targets are

The

could be improved
by more complete

future

development

Stabili¬

favorable.

less

under totalitarian con¬
must not fail to pass

visible

world

form

The recent record of counter-'- vitality of our political institu¬
cyclical monetary action is, I be-' tions.5'Will good economics prove
lieve/fairly good:15 that of fiscal to be good politics? American ef¬
action

the test.

ible adaptation to change.
Ability to solve the problem of
observa¬
tions about increasing the effec¬ creeping inflation will be a su¬
tiveness of monetary and fiscal' preme test of the economic wis¬
measures. "//
./C:: dom: of Americans and of the
time to make only brief

zation policies

yet wavering in their choice

freedom

S. economy has leit me

of the U.

of/ Economic

efficient
economy competing in
markets and capable of flex¬

long, run

American

measures

structural

the

increase

and

Monetary

Fiscal Policies

are

observed
throughout the
world, especially by people in na¬

educated

the dollar

to .stabilize

;

being

All of these groups

inefficiencies.

■/> ,'<•

must

;

forts

protected markets to shelter their,

same .pur¬

■

(1219)

Financial Chronicle

The Commercial and

Loadings 4.4% Above Corresponding 1958

Week

the week ended Feb. 28, 1959,
totaled 575,583 cars, the Association of American Railroads an- >
nounced. This was an increase of 24,391 cars, or 4.4% above the
corresponding week in 1958, but a decrease of 128,400 cars, or18.2% below the corresponding week in 1957.
Loading of revenue freight for

28, which included the Washholiday, were 7,598 cars, or 1.3% below the pre¬

Loadings in the week of Feb.
ington Birthday

ceding week.

Lumber

Shipments 5.7% Above

Production

reporting to the National
Lumber
above production for the
week ended Feb. 28, 1959.
In the same week new orders of these
mills were 6.8% above production.
Unfilled orders of reporting
mills amounted to 43% of stocks.
For reporting softwood mills,
shipments of 479 mills
Trade Barometer were 5.7%

Lumber

Continued

page

The Commercial and Financial Chronicle

(1220)

Thursday, March 12, 1959

draperies; interest in men's clothing and appliances matched the

were

shopping centers — kitchens of
tomorrow, new fabrics, new won¬
der drugs, our
fast-growing pop¬

Industry

equivalent to 21 days' production at the

cur¬

rent rate, and gross stocks were equivalent to 45
days' production.
For the year-to-date, shipments of
reporting identical mills
were 0.1%
above production; new orders were 4.5% above

pro¬

duction.
For

week ended Feb.
23, as compared with the previous week,
production of reporting mills was 1.2% above; shipments were
6.7% above; new orders were 8.9% above.
For the latest week,
as against the
corresponding week in 1958, production of reporting
mills was 5.7% above; shipments were 19.5%
above; and new
orders were 27.2% above.

The

Commercial and industrial failures declined
slightly to 288
the week ended March 5 from 296 in the
preceding week, re¬
ported Dun & Bradstreet, Inc. At the lowest level in four
weeks,
casualties also were down considerably from 358 in
the similar
week a year ago and the 327 in 1957.

However, they remained

total of 286 in the corresponding week of

All of the

week's dip occurred among failures with liabilities
which fell to 248 from 261 in the previous week
On the other hand, small casualties, those in¬
volving liabilities under $5,000, edged up to 40 from 35 and were
about even with the 41 of this size a
year ago. Liabilities exceeded
$100,000 for 29 of the concerns failing during the week as against
of

$5,000

or more,
and 317 last year.

last week.

Manufacturing and construction

accounted

primarily for the

week-to-week decrease.
The toll among manufacturers
dropped
to 42 from 57 and among contractors to 37 from
42, while com¬
mercial service casualties dipped to 23 from 24.

Contrasting in¬

lifted retailing failures to 153 from 141 a week earlier and
wholesaling to 33 from 32. Fewer businesses succumbed than last

creases

year in all industry and trade groups except
The Pacific States, down to 54 from

wholesaling.
75, the South Atlantic,
down to 17 from 25, and the East North
Central, off to 56 from
62, were largely responsible for the week's downturn. There was
little change in the Middle Atlantic
States, with 101 as against
102, and no change in the East South Central, steady at 5. Mean¬
while, four regions reported increases from the previous week;
the sharpest rise occurred in the New
England States where the
toll

climbed

from

11.

levels in all regions.

Business mortality fell below 1958
'

Wholesale Food Price Index

at New 1959 Low

The wholesale Food Price

Index, compiled by Dun & Bradstreet, Inc., again declined and hit the lowest level since Oct.
15, 1957. On March 3 the index fell to $6.11 for the sixth con¬
secutive

decline.

week and 8.5%

Higher

This was 0.5% below the $6.14 of the
prior
below the $6.68 of the similar date a year
ago,
price during the latest week was wheat, corn,

oats, cottonseed oil, cocoa, steers, and hogs.
lower were flour, rye, hams,

Commodities quoted

bellies, lard, sugar, milk, coffee,
and potatoes.
The Index represents the sum total of the
price per pound
of 31 raw foodstuffs arid meats in
general use.
It is not a costof-living index.
Its chief function is to show the general trend
of food prices at the wholesale level.
eggs

Wholesale

gains

were

dollar volume of retail trade in the week ended
3% to 7% higher than a year ago, according to spot
estimates collected by Dun & Bradstreet, Inc. Regional estimates
varied from the comparable 1958 levels by the following per¬
total

ulation.
tween

centages: South Atlantic -f 5 to -j-9; East North Central -f 4 to
-f8; New England and West North Central +3 to +7; Middle
Atlantic and Pacific Coast -f2 to +6; East South Central
+1 to
4-5; Mountain 0 to 4-4; "West South Central —2 to 4-2.
High sales of women's winter coats and suits and increased
volume in spring coats,

dresses, and millinery boosted over-all

sales in women's apparel moderately over a year ago; interest
in spring fashion accessories and sportswear was sluggish. There
was a

Commodity Price Index Slips Fractionally

Reflecting price declines on flour, coffee, sugar, and steel
scrap, the general commodity price level slipped
slightly this
week.
The Daily Wholesale
Commodity Price Index, compiled bv
Dun & Bradstreet,
Inc., felt to 277.08 on March 9 from the 1959
high of 277.22 of a week earlier. It compared with 282.10 a
year

marked rise

over

last year in

girls' merchandise.

ing was sustained at
There

were

high level.

substantial year-to-year gains in furniture sales

in bedroom sets, upholstered chairs, and
occasional tables.
The call for draperies and linens was up
moderately over a year ago and slight increases occurred in
floor coverings.
Appliance stores reported the most noticeable
advances in television sets, radios, laundry equipment, and lamps.
Food buying at retail was sustained at a high level this week.
Dairy products, canned goods, and frozen foods continued to
sell well offsetting slight declines in produce, fresh meat, and
poultry.

Nationwide Department Store

above the like period last yar.

In the preceding
increase of 24% was recorded. For the four
a gain of 12% was registered.
According to the Federal Reserve System department store
sales in New York City for the week ended Feb. 28 showed a 4%
decrease from that of the like period last year.
In the preceding
week, Feb. 21, an increase of 47% was reported.
For the four
weeks ended Feb. 28
ume

in the

increase of 9%

was

noted

Continued

from

page

Cotton

was

up somewhat

turn¬

slight decline in cotton prices

Exchange this week.

cotton declined

on the New York
Both domestic and
export buying of

during the week.

for the week ended last

Tuesday

United States
exports of cotton
were

estimated at 31,000 bales,

compared with 71,000 in the prior week and
66,000 in the compar¬
able period a year ago. Total
exports for the season
through last
Tuesday came to about 1,848,000 bales,
compared with 3.318,000
in the similar period last season.

Consumer Buying Exceeds Year
Ago
consumer buying in the week
ended March

Although
mained
over

that

the

that

Similar

the

prior week,

week

last

year.

re¬

it climbed moderately
The

most

noticeable

year-to-year gains occurred in women's
apparel, furniture, and

Offers Guideposts to- Watch

(1) We have been in, and will
remain
in, two-way markets—

ages.
which

the choice of issue is far
important that the Aver¬
This is no longer a market
in unison.

moves

(2) Be on the alert for
development which will
the

investment

major
change

climate.

Until

this

happens, the worst to be ex¬
pected are the perfectly normal
and natural technical reactions.
(3)Tne real test of business
outlook

will

second

between

come

the

third

and

quarters. By
then, we'll know whether the in¬
tion

steel

strike

has

bor¬

have

dustries

pretty good idea* of

the

whether

capital goods in¬
coming along to fill

are

the current void.

(4)

Between now and then, I
"whopper" of a reaction

expect
—for

all

stocks do not

common

man's

ills:

cure

from dandruff
T

search for

I suggest that
the values in the

currently unpopular groups—such
as the Oils, Textiles and Metals.

Applying Realism to Investing
In a Revolutionary Eia

(6) I'd also look for the values
companies that have taken a
lease on life—say, American

new

Standard

Flintkote.

(7) Rather than pay an absurd¬
ly high price for glamour, I'd seek
out the companies that are
larly people who "lock things when being "right" on the Stock
benefiting from a change, iri
up." For example, the Pension Market was dependent upon be¬
Funds—which are growing at the ing "right" on the business trend, Management — or, have a new
product.
American
Steel Foun¬
rate of $4 billion annually—are no
longer exists,
(b)
Unfortu¬
dries,
Cluett,
Peabody,
United
putting about $1 billion a year nately, there is no statistical yard¬
Fruit come to mind.
into the Stock Market. Moreover, stick
which
can
conclusively
(8) In a word, I would do what
mutual funds sales last year were prove over-valuation—or under¬
comes
naturally — and emphasize
better than $1 billion net.
If we valuation. Both are only areas.
the

add to this the billions

being in¬
banks and insurance
companies, it's easy to see an ef¬
fective price influence has come
into being. Don't forget, that the
average
New York Stock Ex¬
change volume represents only
vested

about

Doubts Another 1932

15%-20%

the

Speaking of emotions, and areas
over-valuation, I'm sure many

have heard the comment "This is
1929!"—It is—in the
America
in

buying

sense

seemingly
common

that all

interested

stocks.

But

listed—and

there

of this

ences
which should prevent an¬
other 1932. Note the following:

only about one-third
figure is a medium for the

—and

dividends

will

are

some

important differ¬

(1) This time, we have what is
practically a cash market—a mar¬
ket

than

which
ever

inherently stronger

before.

(2) This

up,

"insiders."

bull.

(4) Personally,

discount in¬
buy com¬
mon
stocks.
Most people
have
forgotten that the "shrinking dol¬
lar" is not a postwar invention.
flation

reason

there

Information

are
no
is more

disseminated—and

understood—than it

was

(3) This time, we have an ana¬
lytical profession making Amer¬
ica's security opinions who should

new

the

era

difference

—

rising

our

increase in disposable, discretion¬
ary
income. Wilson,
Northwest
Airlines, are perfect examples.

whatever you

But,

overlook

not

tions:

two

considera¬

4;'

The key to

(1)

Market

Stock

please

do,

Ability

—

in the
Courage,

success

Faith,

plus the fact that the

Good Lord has to tap you on the
shoulder every so often.

(2) The Stock Market is

dif¬

It does not

offer

does

security—but
opportunity.

between

we are

with

offer

Special Libraries
Golden Anniversary
The

Special

tion will

one

better

30 years

ago.

know

beneficiaries

standard of living, the greater lei¬
sure for the masses, the enormous

ferent than life itself.

time,

right and wrong.
(4) This time,

improved.

soft

me,

(5) Meanwhile,

in front of

week.

consumers

Believe,

I know!,
But let's be specific—for this is
what will pay the rent. Here are
some guideposts to watch:
(

you

Cuba.

Although hog receipts in Chicago declined
moderately trading
up appreciably during the
week; hog prices slightly ex¬
ceeded those of the
prior week. There was a noticeable
gain in
cattle receipts, and
trading rose somewhat; prices on steers were
moderately higher. Prices on lambs moved

the vol¬

over

corresponding period in 1958.

There

enormous

to althlete's foot.

Purchases of flour slackened this week and prices fell moder¬
ately; there was a slight rise in export volume. Domestic trading
in rice moved

over

are

ventory accumulation in anticipa¬

week, for Feb. 21, an
weeks ended Feb. 28

widely

moved

will

advanced 10%

too.
Furthermore1, Management has
caught the "fever"—and is split¬
ting their stocks—in some cases,
quite frankly, inadvisedly. But it
all adds up to an environment
which is like waving a red flag

up as buyers sought to replenish
depleted stocks.
export inquiries for rice from
Indonesia, Ceylon, and
Rice prices were
unchanged from the prior week.
Sugar trading declined and prices fell
appreciably; further
price decreases are in prospect for the
coming weeks. Coffee buy¬
ing slackened at the end of the week
and prices finished moder-;
ately below those of a week earlier.
Increased turnover helped
cocoa prices rise for the
fourth consecutive

be¬

there

rowed from the second half. We'll

(3) Those who are the security
buying public are being excited
—and rightfully so—by Industry's
dramatic earnings recovery. Cor¬
porate earning power probably
will reach a record high in 1959

were

latter,

1965

also

Most grain prices rose
noticeably at the beginning of the
week, but declined at the end of the period.
Trading in wheat
expanded appreciably, but prices finished close tc those of a
week
earlier, export transactions in wheat moved up
considerably, and
stocks in Chicago were reduced.

the

and

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's Index for the week ended Feb. 28,

ago.

Transactions in rye were
steady, but prices slipped somewhat.
trading matched that of the prior week and
prices were
unchanged; corn supplies moved up somewhat. The
buying of soy¬
beans strengthened
during the week, but prices remained close to
prior week levels. Soybean receipts were
light.

Sales Up 10%

Apropos

drinks.

this week, especially

everyday life—the

be a 35% increase in the teen-age
population — and teen-agers eat
25% more food than adults. They

where

Interest in boys' cloth¬

our

now

Continued
clearance sales promotions helped volume in men's winter suits
and overcoats match that of a week earlier and
moderately ex¬

institutional buyer.

Corn

see

was

March 4

above the prewar
193.9.

Further sales

ceed that of the comparable 1958 week.

Business Failures Continue Lower

levels.

reported in new
passenger cars, and volume was appreciably higher than a year
ago, according to scattered reports.

The State of Trade and
unfilled orders

similar 1958

Continued from page 35

really in'
more

in¬

herent resiliency and buoyancy—
than ever before in the Nation's

niversary
31-June

tional
and

Libraries Associa¬

celebrate its golden an¬

in
4.

Atlantic
SLA

City,
an

May

interna¬

organization of professional

information

experts

who

manufacturing concerns,
banks,
corporations, law firms,
From 1897 to 1913, prices rose an
Analyzes Upward Business Trend newspapers, advertising and in¬
average of 2.5%
annually. Yet,
surance
agencies, transportation
As for the business
trend, it is
economic history books make no
companies, research organizations,
mention of inflation fears in these obviously upward—not for every¬
one,
but for the country as a museums, hospitals and other or¬
easier-living years. Above all, I
ganizations.
Organized at Bretwhole.
Sure, unemployment will
call your attention to
the fact
ton
Woods, New Hampshire, in
be high—competition will be keen
that the biggest economic collapse
—and labor troublesome.
But I 1909, the Association was incor¬
this country has ever experienced
porated under the laws of Rhode
came
after a period of relative suspect that the FRB Index will Island in 1928. There are
approxi¬
duplicate
its
1956
peak
this
price stability in the 1920s.
mately
5,000
members
in
the
Spring—and rise to a new high
United States, Canada and many
Purposely, I've talked about by the year-end.
other countries. Banquet speaker
the Stock Market before discuss¬
Frankly, the glib generalities
for the Convention will be August
ing the business outlook. It's not we read concerning our Gross
a question of
putting the cart be¬ National Product do not interest Hechscher, Director, The Twen¬
tieth Century Fund.
fore the horse—for stock prices me as much as the fact
that ours
are made by
psychology, the price is a truly revolutionary era. I'm
you are willing to pay to have
not talking about the Space Age With Hornblower & Weeks
a part in American
Industry. And —or automation—or, the fact that
HARTFORD, Conn.—Donald C.
that price, to some extent, is re¬
our
scientific progress has been Walsh has become associated with
lated

the

words;- (a)

emotions.

The

good

serve

history.

;

:.y.

other

accelerated

old

days,

Rather, I have in mind the things

the

"cold

war."

Hornblower
Street.

V*.

Weeks,

750

Main
->•* 4'

Volume

189

Number

5828

(1221)

The Commercial and Financial Chronicle

The following statistical tabulations

Indications of Current

latest week

Business Activity

week
Latest

4MEB1CAN

IKON

operations
Equivalent to—

Steel

cent capacity)
•

(per

Month

§2,800.000

Mar. 15

fuel

Residual

output

oil

2,371,000

*2.556,000

at_

2,784.000

2,957,000

*15.584.000

14,972,000

*7,162,000

7,600,000

7,520,000

204,987,000

197,511.000

19,828,000

19,648,000

20,910,000
96,745.000

215,191,000
17,167,000

83,368,000

54,582,000

84,021,000

CONSTRUCTION

ENGINEERING

CIVIL

State

STATES—DUN

INC.—Month of

MERCE

54,208,000

NEW

172,105

6,455,800

8,423,900
21,300
263,800

6,268,300

8,083,400
7.814,700

SERIES

Month

—

coal

551,192

Wholesale

539,119

Retail

L—

—

Pennsylvania anthracite- (tons)-

AVERAGE

SYSTEM—1947-49

Total

COTTON

;

—

•

$234,240,000

176,172,000

154,541,000

$365,141,000
i
168,294,000

293.100,000

109,488,000

129,699,000

196,847.000

Consumed

131,600,000

85,211,000

107,877,000

161,972,000

consuming establishment

111,500,000

24,277,000

21,822,000

34,375,000

public storage

8,195,000

8.055,000

H,585,00Q

425,000

390,000

521,000

8,310,000
571,000

118

109

106

107

Electric output

AND

LJNTERS

(COMMERCIAL AND

FAILURES

BRADSTREET, INC.
IRON

COMPOSITE

AGE

Finished steel

INDUSTRIAL)

month

Mar.

—.

Scrap steel (per gross ton)—__—

METAL

PRICES

(E.

Electrolytic copper—
Domestic

•

Louis)

(St.

tZinc {delivered)

0.196c

5.967c

$66.41

727,410
of Jan. 3

of Jail. 3

$41.83

$43.17

$43.83

*1,593,507
' *12,622,615

29.600c

—Mar.

28.850C

19.875c

Jar.
lar.
lar.

4
4

11.000c

1.000c

12.000c

13.000c

10.800c

11.800c

11.500c

12.0003

4
4
4

—

11.500c

Mar.
Mar.
Mar.
Mar.
Mar.

Aa
A

Baa

24.700c

26.000c

103.750c

101.500c

Group
Utilities Group

Group

86.63

86.12

94.38

90.20

U. S. Government Bonds

90.20

89.78

94.41

93.97

92.93

92.20

Aaa

Mar.
Mar.
Mar.
Mar.

a
.

Railroad

Group

public

""I

Utilities

Industrials

90.34

89.78

33.79

83.53

89.09

88.40

91.62

89.92

89.78

89.23

91.77

91-62

4.40/

4.13

10
10
10
10

4.90

4.48

4.53

4.30

4.42

REPORTER PRICE INDEX—
ACCOUNT

Mar.

348,266

114.72

110.10

109.47

1,309,780

347,000

3,030,260
565,990

1,904,960

1,961,170

2,563,620

1,008,250

2,231,150

2,308,170

3,128,710

1,276,080

2,201,040

2,230,050

326,190

267,830

49,600

Feb. 14

355,900

430,690

416,700

487,090

526,899
583,590

275,860

Feb. 14

sales

————

Feb. 14

645,209

729,705

993,710

427,380

101,470

111,420

184,650

92,960

711,265

793,972

1,032,569

507,090

■■■— — ■

Feb. 14
Feb. 14
JP Cfo

812,735

905,392

1,217,219

— i "i

ni r

488,460

514,820

4,515,300
806,440

Feb.14

2,972,125

3,185,832

4,123,079

2,053,580
410,390
1,791,200

Feb. 14

3.460,585

3.700.652

4,929.519

sales

ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t
Number

3,431,585

Zinc

Feb. 14

1,700,754

1,786,795

2,471,409

1,068,724

$85,178,715

$87,528,880

$; 24,060,797

1,405,376

Dollar

6,905

24,192

1,395,097

1,541.647

2,039,949

$76,215,124

$102,410,496

370,310

410,740

4S2,000

276,190

270,310

4Kb 740

492,000

Short
;

657.580

640,390

914.450

sales

—

other sales—

Round-lot purchases by
Number of shares

Total

dealers—

Feb. 14

Other sales
Total

sales

WHOLESALE PRICES, NEW SERIES
LABOR—(1947-49 = 100):

7,604

All

412,030

products

Processed
Meats

All commodities other

than farm and foods.

646,180

640,590

—

92.692c

t—.

MONEY IN
As

29.500c

33.500c

$52,000

$77,000

$1.45000

$1.55000

33.000c

$1.45000

$1.55000

$1.45000

$1.55000

$1.75000

$2.00000

$26,800

$28,100

$24,700

$26,000

35.250c

74.000c

$2.25

$32,193,000

$32,036,000

$31,834,000

—

——

CIRCULATION—TREASURY DEPT.

Dec.

(OOG's omitted)

VEHICLE

FACTORY
SALES FROM
S.—AUTOMOBILE MANUASSN.—Month of January:

PLANTS
■

29.000c

$57,278

pound)

(per

32.590c

24.417c

.—

—

Bismuth

32.590c

29.000c

74.000c

pound)
Aluminum, 99% grade primary pig
Magnesium ingot (per pound)(per

FACTURERS'

of vehicles

Total number

644,810

coaches

motor

572,535

489,643

94,263

82,523

175

—

,■

594,393

98,315

—.—

688,846

546,320

Number of passenger cars
Number of motor trucks

190

369

(Number of)—

Passenger Tires

Shipments
Inventory
Truck

and

7,739,37G

—.————

—

Production

—.—

—

Tires

Bus

6,764,947

5,739,277

8,046,197

7,181,556

6,597,263

17,778,036

—

—.—

—

17,419,873

19,817,850

(Number of)—

209,366

183,188

303,960

261,067

921,539

Motorcycle,

3,407,557

351,785
Fassenger

1.018,089

257,666

814,494

852,G26

2,898,650
3,318,609

2,717,439

3,490,958

8,602,097

3,371,927

7,670,868

45,200,000
43,638,000

40,008,000
40,585,000

36,070,000
33,138,000

27,550,000

—

Tractor Implement Tires

820,894

1,211,076

2,982,933

29,352,000

25,061,000

$1,596,200
1,089,000

$1,599/100
1,141,000

$1,682,700
1,043,200

1,152,767

4———————~—

Production

1,023,447

1,329,978

3,161,267

Shipments

14.784,410

16.307,450

21,512,010

15,430.590

17,448,040

740,730
9,771,580
10.512,310

895,990
22,408,000

(Number of)—

Truck

and Bus Inner

(Number of)—

Shipments
Production

Inventory

——

119.1

"119.3

90.3

89.9

90.8

99.0

108.3

107.2

98.9

98.2

127.6

*127.5

.Mar.

•

—-—"

•

2.777,860

(Camelback)—

(pounds)

;———

(pounds)
(pounds)

STATES
OF

109.6

Mar.

—_—

—

EXPORTS
CENSUS

—

AND IMPORTS
Month of Nov.

(000's omitted):

119.4

119.2

Mar.

Exports

—

102.3

103.7

127.5

125.8

*Revised figure,
of

tons
"Revised figure.
^Includes 902,000 barrels of foreign crude runs
tNumber of orders not reported since introduction of
as of Jan. 1, 1959, as against Jan. 1, 1953 oasis of 140,742,570
tons. sis at centers
where, freight from East St. Louis exceeds
Monthly Investment Pian.
"Prime Western Zinc sold on delivered n
one-hair cent a-poritrd:

99.345c

7G.847tl

$2.281322

36.590c

BUREAU

76.250d

$2.80647

102.729c

—
—

Production

.Mar.

foods

89.449c

77.206c!

$35,000

UNITED

£62.179

$220,692

Tubes

.Mar.

commodities

Farm

£72.932

90.206c

$2.80935

Inventory

DEPT. OF

Commodity Group—

£71.981

£62.568

90.444c

(per long ton)

three months

3 0.500C

£74.884

$35,000

Inventory

—Feb. 14
—Feb. 14
—Feb. 14

30.000c

12.000c

£73.681

$218,000

Tread Rubber

round-lot sales—
sales

11.500c

-■

11.917c

$35,000

MEMBERS (SHARES):

Short

11.417c

(per pound)

(per long ton)

$218,000

TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF

£72.545

3,410,974

Feb. 14
Feb. 14
Feb. 14

shares—Total sales

£72.164

270b 190

Round-lot sales by dealers—

£70.775

Quicksilver (per flask of 76 pounds)———"
H Antimony, New York, boxed
Antimony (per pound), bulk Laredo—-——
Antimony (per pound), boxed Laredo
Platinum, refined (per ounce)
—.
tCadmium, refined (per pound)-,
:j:Cadmium (per pound
^Cadmium (per pound)—
Cobalt, 97It grade (per pound—ounce ton)—
Aluminum 99% grade ingot weighted average

903,890
$41,292,892

10,279

value

Number

12.800c

£72.168

Exchange (check)
Tin, New York Straits—
Gold (per ounce, U. S. price).

928,04.4

2,046,354

1,549,251

$09,718,340

short sales

Customers' other sales

•

33.000c

12.467c

£71.851

Sterling

$47,003,911

value

-Customers'

12.667c

11.383c

£69.966

RUBBER MANUFACTURERS ASSOCIATION,
INC.—Month of December:

odd-lot purchases bv dealers (customers' sales)—
Number of orders—Customers' total sales

£174.023

(per pound)—East St. Louis

Number

Feb. 14

£227.292

pound)—41

§§Zinc, prime Western, delivered

gTOCK TRANSACTIONS FOR

Dollar

21.253c

£171.369

11.560c

(per pound)

YtZinc, London, prompt

2,201,590

3,252,129

-Feb.14

27.927c
£230.101

£235.531

London (per long ton).

Common, East St. Louis (per

MOTOR

—Feb. 14

purchases

Other sales

25.114c

28.726c
£236.206

tfLondon, prompt (per long ton)
tfThree months, London (per long ton)

600,050

»■

transactions for account of members—

Short sales —__———;—-—v
Total

325,460

initiated off the floor—
■

28.635c

29.617c

(per pound)

New York

common,

"••Nickel

Other sales

Total

26,690

February:

375,635

110.76

400,485

.816,420

■■

•27,50.3

Copper—

Silver, New York (per ounce)
Silver, London (per ounce)

56,700

wmmm

$53,520

Silver and Sterling Exchange—

491,330

22,372

*$49,301

M. J. QUOTATIONS)—

266,581

56,400

(E.

236,717

501,830

—T—

METAL PRICES

293,826

60,800

SftlGS

$31,148

*21,424

—

293,331

405,880

round-lof

*$27,877

21,397

—

——

„

304,774

Pel). 14.

Xotftl
Total

Nondurable?

297,549

floor—

——

$27,824

dollars):

...

3.86

MEM¬

Other sales

••

3.95

4.47

Feb, 14

-——

——

3.97.5

—Feb. 14
—Feb. 14
————Feb. 14

purchases.—,—:

(millions

December

4.30
/

sales

Short sales

Durables
'

4.06

purchases

Other transactions

$6,837,000

SERIES—

NEW

385.4

—Feb. 14

sales

Total

4.43

423,667

Feb. 28

purchases

Short

$5,221,000

28,038

COMMERCE)

Inventories—

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

Total

$7,013,000

—

(DEPT.

ftzinc, London,

100

-Other sales—

2,137,000

$49,221

Total

492,000

728,000

MANUFACTURERS' INVENTORIES AND SALES

4.67

4.50

Feb. 28

Total

$4,208,000

588,000

Lead—

4.88

301,751

(tons).

$3,905,000

Dec.

499,000

3.62

4.87

324,109

of activity
(tons) at end of period.

Other transactions initiated on the

2,132,000

3.78

4.26
4.43

4.29

Unfilled orders

$525,2OO,0QO

—

f+Three months,

4.14

4.11

303.2

Percentage

89,300,000

$594,000,000

INSTITUTE

Exports reiinery (per pound)—
flLondon, prompt (per long ton).

4.21

4.29

Production

-Short sales

—

Month

4.03

4.39

Mar. 10

FOR

—

2.98

4.22

Feb. 23

Total

98.25

4.39

Feb. 28

TRANSACTIONS

PURCHASES

INSURANCE

4.43

4.40

337.G

j Orders received (tons)

ROUND-LOT

101,700,000

105,200,000

omitted):

3.82

3.76

Mar. 10

120,200,000

$536,600,000

Domestic reiinery
3.85

NATIONAL PAPERBOARD ASSOCIATION:

AVERAGE

LIFE

Industrial

96.85

11.000c

MOODY'S COMMODITY INDEX

1949

103,700,000
97,000,000

86.51

88.81

Mar. 10

Group

OIL, PAINT AND DRUG

57,800,000
9,200,000
44,800,000

95.16

83.91

—Mar. 10

—

Group

53,600,000

99.52

90.34

Mar. 10

00,400,000
10,200,000

46,500,000

——

(000,000

102.13

92.79

Mar. 10

Baa

$244,400,000' $222,400,000

9,200,000

INSURANCE

95.62

94.12

10
it
10
10

Average corporate
A

$214,800,000
65,400,000

;

—

——

m»vm«nts

Month

DAILY AVERAGES:

BOND YIELD

MOODY'S

Total

94.025c

85.75

10
Mar. 10
..Mar. 10

Railroad

Industrials

'
98,584
% 827,437-; I,;:;;876,pl5
17,616,000 ■; 18,144,000

OF LIFE

Policy dividends

10.000C

24.700c
104.750c

11.000c

—Mar. 10

corporate

;

24.700c

—Mar. 10

—

Aaa

Public

10.500c

4ar.
•'Iar
—/lar-

U. S. Government Bonds

PAYMENTS

INSTITUTE

—

12.800c

11.500c

——

17,616,000

$4,382,000

A"«llit"

24.175c

29.300c

—

Matured endowments

•'

29.025c

MOODY'S BOND PRICES DAILY AVERAGES:

Average

INSURANCE—BENEFIT

LIFE
] '/ '

U-"

30.000c

Louis) at
(primary pig. 99.5(c)
Straits tin (New York) at

106,667

857,485

POLICYHOLDERS

569,873

*1,430,857
*11,908,071
90,146

Stocks Jan. 3
Cotton spindles active as of Jan.

$37.67

29.625c

—

Aluminum

672,838

1,542,092
12,725,950

$66.49

Mar.

Zinc iJEast St.

$90,700

Surrender values
6.196c

$66.41

6.196c

.\',iM'f

Lead (New York)

Lead

271

296

•

at__

refinery

V'/-;.

358

$66.41

Mar.

—:

Export refinery at
at_

■

11,793,000

13,292,000

12,972,000

QUOTATIONS):

M. J.

—-—Mar, .3
———-—Mar. 3

Pig iron (per gross ton)___—_—_—.
„;

288

PRICES:

(per lb.)

$85,000

of December

Disability payments

DUN *

—

24,560

$85,200

DEPARTMENT

—

COMMERCE—RUNNING BALES:

Death benefits

12,945,000

.Mar.

Jkwh.).

(in 000

12,700

23,600

INSURANCE—Month of November:

ELECTRIC INSTITUTE:

KBISOX
«

Feb. 28

'$53,500

12,100

24,000

;

$285,660,000

230,000.000

RESERVE

100

$49,300

12,000

—

LIFE

13,030

$49,200

——

ii-

•

.....

Feb. 28

DEPARTMENT STORE SALES INDEX—FEDERAL
V<.;

16,458

Dec.

(Millions of dollars):

582,636

Feb. 28

and

246,800

COM¬

Linters—Consumed month of December
'Bituminous

21,900

173,800

THE

BRADSTREET,

DEPT.

__Mar.

S. BUREAU OF MINES):
lignite (tons)

(U.

COAL OUTPUT

13,700

18,773

(NEW)

—

$523,100,000

—Mar.

135,024

January...

INVENTORIES

..Mar.

municipal

and

139,836
124,202

3,709,000

_Mar.

construction.

Public

sales

_Mar.

Private construction

/
■

*555,129

140,962

therms)

gas

INCORPORATIONS

BUSINESS

ENGINEERING

—

construction

BUSINESS

653,692

583,131

552,518

NEWS-RECORD:
Total U.

Ago

133,545

therms)
Mixed gas sales (M therms)—

88,638,000

57,867,000

55,530.000

575,583

therms)—

sales

gas

Manufactured

Manufacturing
■

•

sales

gas

Natural

UNITED

Feb. 28
freight received from connections (no. of cars)—Feb. 28

( Revenue

Total

2,775,000
12,155,000

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
w

Year

Month

(BUREAU OF MINES):

(in short tons)—Month of November
Stocks of aluminum (short tons) end of Nov.

7,560,000

208,772,000

—Feb. 27

(bbls.)

oil

of that date:]

AMERICAN GAS ASSOCIATION—For month of
December:

26,429,000

7,483.000

fuel

6,841,285

7,107,135
8,140,000

27,514,000

15,267,000

Feb. 27

,Residual

7,189,120
*8,052,000
*27,963,000

2,511,000

Feb. 27
Feb. 27

Distillate fuel oil (bbls.) at

(■

(bbls.)

ALUMINUM

1,463,000

118,236,000

unfinished gasoline

and

Finished
..Kerosene

are as

Month

54.2

27,966,000

terminals, in transit, In pipe lines—
(bbls.) at
Feb. 27
——
—.——
-Feb. 27

Stocks at refineries, bulk

7,198,720

Feb. 27
Feb. 27
—Feb. 27
—Feb. 27

(bbls.)
(bbls.)

fuel oil output

Distillate

of quotations,

cases

Ago

83.7

(bbls. of

average

output (bbls.)
output (bbls.)

Kerosene

output—dally

stills—daily average (bbls.)

runs

Gasoline

'!'

condensate

and

gallons each)

Crude

oil

or,

either for the

are

Latest

fUMERICAX PETROLEUM INSTITUTE:
Crude

that date,

Yew

Ago

»90.3

production and other figures for the

cover

Dates shown in first column

Production of primary aluminum in the U. S.

(net tons)

ingots and castings

Week

§91.8

—Mar. 15

month available.

month ended

Week

STEEL INSTITUTE;

AND

Indicated Steel

§Based on new annual capacity of 147,633,670

the

platers,

f Average based on the producers' quotation.

jBased on the average

producers* and platers' quotations.
gAverage of quotation on
tDomestic five tons or more but less than carload lot boxed.

special shares to
§§Delivered where

freight from East St. Louis exceeds 0.5c. **F.o.b. Fort Colburne U. S. duty included.
ttAverage of daily mean and bid and ask quotation at morning session of London
Metal Exchange,
i(Increase all stocks.
-

The Commercial and Financial
Chronicle

(1222)

Puritan Fund

At Record
port
total

net

quarterly

assets,

share, shares outstanding, and

per

shareholders

number

tablished

highs.

new

all

Net

assets

totaled $62,085,500 compared

$54,018,406

Oct.

with

1958—an

31,

increase of 15%. Number of shares

outstanding increased to 8,075,228
from 7,736,124.

Number of share¬

holders increased to 19,300 from

Net asset value per share

18,800.
as

Jan.

1959,

31,

1958, and $6.33 on July 31, 1958.
securities

New

cluded

Stevens

Interlake

Iron

Greyhound
nated

the

from

Corporation

the Fund

were

United

and

Elimi¬

during the

and

Out¬

General

Advertising.

"During the early part of the
year
as
the bond market im¬

Highs in
Categories

All

proved,

Fund, one of the nation's
largest and oldest mutual funds,
achieved record
highs in share
value, total net assets, sharehold¬
ers
and
sales during the fiscal
The

fund's

(1)

annual

27th

these

report

The

asset value a share,
adjusted for capital gainfe
paid out, increased 23% to $17.83
from $14.51.
when

(2)
rise

Net
to

showed

assets

$197,994,544

39%

from

$142,-

125,781.
(3) The

number

sharehold¬

climbed to 32,965 from 29,238.

ers

(4)
the

Purchases of

fund

shares in

new

exceeded

$25

during

any

riod in the fund's

million,

shareholders

$2,983,742
vember
Boston

American

Telephone &
Telegraph
Company which be¬
came our largest single
equity in¬
vestment.
By mid-year we had
increased
to

"The

were

when
was

of
somewhat
equity
purchases
was
continued throughout the balance
of the year and
at Jan. 31 the
common
stock
position was at
67.9% with the backlog of bonds
program

preferreds representing 32.1%
of the portfolio."
New equity commitments in the

issues

and

partly

merger and the record
of new cash into the fund.

WRITE FOR

commenting

FREE INFORMATION

tion

FOLDER AND PROSPECTUS TO

served

YOUR INVESTMENT DEALER OR

taken

that

the

flow

portfolio ac¬
fund, he ob¬
stock

common

portion of the account

year

ago

and

the

backlog portion of bonds and

NATIONAL SECURITIES &
RESEARCH CORPORATION

reduced

ferred stocks
"The

Established 1930

Broadway, New York 5, N. Y.

fund,"

"maintained
investment

year

57.2%

at 42.8"%;

was

position

but

ment in business became
made

were

tional convertible bonds and

vertible preferreds.

american

also

creases

$100 Million Mark
Net assets of National Investors

growth
Street
have

were

commitments in

stock fund
of

crossed

of the

the

by Francis

chairman

the

record

addi¬
con¬

made in equity
which man¬

Feb.

27,7 for

than $6 million

$94,001,772 at the start of

the

Mr.

Randolph,
of

new

shares accounted for $2,593,000 of
this rise in assets.

The balance of

the gain was the result of market

appreciation

the

fund's

port¬

folio securities.

new

Fund,

that sales of

History

Broad

Street

national

Sales

distributor

Broad Street

Invest¬

?Mr.

Inc.*' -reported

ary totaled $4,127,000,
sales volume lor any

Fox-Martin

Whitehall

also

brought

out that gross sales of new shares

the

the largest
month

and-

Fund, Inc.

shares in Febru¬

new

two

three

months

funds
of

for

1959

the* first

$8,247,000

were

nearly three times greater
the Fund's 21
year history.
Thethan the,$2,834,000 for the same
previous record month was June,\
period of 1958.
1955 when* sales amounted to $3,Iii contrast to the
$5,413,000 in¬
779,000.
* :
,

month,
the

January

first

1959.

two

Sales

months

$7,446,000,

for
1959

times the sales in the
year

ago.

ONE WILLIAM

All-Time

$ 100 Million Mark

cents

per

share,

with $10.83 at the

end

shareholders

new

high total of
consisting
of

4
$11,000,000,
$5,325,700, or 42 cents a share,
from
investment
income,
and

from realized

44 cents a share,
capital gains. As of

the

year-end
the., total
market
value of all securities owned ex¬

BULLOCK

ceeded

cost

over

On December 31

FUND, inc.

represented

63%

$52,033,000.

common

the

stocks

Fund's

total

and indus¬

trial

assets

American

Dec. 31, 1958, stood at
$103,461,643, it was stated by President

Jonathan

Lovelace at the* 10th

Annual Meeting of the sharehold¬
ers
held in Los Angeles.
During

calendar
Fund
rise

.1958

total

increased

62%

asset

assets

the

by $39,512,937—a

from

the

figures

$63,948,706
for Dec. 31,

1957?::;:::..;;.
Net

asset

Dec. 31,

value

1958

per share
on
$9.11 compared
earlier. Adjusted

was

$7.05 a year
for, the capital

gain distribution
during the period of 43 cents, this
represented an increase of 35.2%.
Mr.

Lovelace

since the

offering
Mutual

date

pointed

that

out

of the first

public

Feb. 21,1950, American

Fund

has grown

million to $103

from

-.Public utility stocks represented
the

largest

the

Fund's

1958.

industry

total market value

holdings

I'or

year

ago;

common

The

Fund's

stock investments

prospectus

see your

investment dealer

that date

phone

Tit

free

booklet-prospectus by
mailing this ad to

CALVIN BULLOCK, LTD.

WILLIAM STREET SALES, INC. •'

[

ONE WALL

A Common Stock Investment fond

i
_

Address^

ST., NEW YORK 5

Name:.

Fund

One William Street, New York 4, N. Y.

Established 1894

Investment

me a

prospectus and literature on
The One William Street
Fund, Inc.

Name

!
!'

Send

are

possible

income

objectives of this Fund
long-term
capital and

growth

tor

Prospectus

its

shareholders.

Address

.....

City.

State
-

Affiliated

send this coupon to

vesting in "growth"
stocks. Send for

}

portfolio on Dec. 31,
Stocks in this category had

enterprise with emphasis on long-term capital growth
possibilities and current income.

A mutual fund in¬

million.

$10,975,125.
American Tele¬
and
Telegraph was? the
were Florida Power &
Light Co., largest single holding in the Fund.
International Business
The 4 second
Machines,
largest
industry
Royal
Dutch
Petroleum
Co., concentration was in .steel - and

largest

company

investing in the securities of American business

investments, compared with

60%

net

Mutual Fund have crossed the One
Hundred Million Dollar mark and

The George Putnam Fund of
Boston, "balanced" mutual invest¬
ment fund, reports total net assets
at an all-time high of over $180,400,000 on
December. 31,.,1958,
compared with $133,200,000 a year
ago, the largest dollar gain in the
history of the Fund. Asset value
per share increased almost 30%
to a new high of $14.08, after, ad¬
justment for a capital gains dis¬

rose

■

American MuluaI

;

High of $180 Mil.

L958

STREET

Now' Above the

first. two

Fund

Assets

the

period

same

for.

1959,

earlier.: -.? >:'y. \

than two

sales

redemptions of
shares increased only $462,000 to
$1,647,000 from $1,185,000 a year
.

totaled

crease

The February total was
24%
greater than sales in the previous

over

Chemical's

Payments

Chicago 3, 111.

during February
195% higher than the $1,283,000 of February a year, ago,
according to Milton-Fox-Martin,
President

open-end management investment

were

tors, Corporation

$5,675,500,

Gross sales of $3,787,000 for new

shares of the Broad Street
Group
of Mutual Funds

Corporation,

of 1957.

an;

Above Last Year's

FUND

■r.'i'i
.v.tn

Feh. Sales 195% ?»

com¬

Sales To tal in

tribution

WILLIAM

made

of shares

compared

ONE

& Finance Co. "Awi
U(

Broad Street's

Total

According

The
Selected Investments Co.

State Loan

Largest Monthly

over

INC.

135 a La Salle St.,

Fund

Prospectus from your dealer

Northwest Natural Gas Co., Puget
Sound Power & Light
Co.i; and

Affiliated

high

$100,205,335

the

Corp.fC^and

dation Coal Co., Dresser Indus¬
tries, Inc.,. Franklin Life Insurance
Co., General Electric Co., Hooker
Chemical
Corp.,
Kellogg '•< Co.,

$4,775,543 which/ after ex¬
of $627,955, made for a net
income of
$4,147,588.
During the thi*ee month period,

Board.

gain of

Funds,

$100,000,000

was announced

Randolph,

Broad

Mutual

year.

Important in¬

areas

Gas

•

tion, the 22-year-old

Group

mark, it

Natural

Seaboard Air Line R.R. Co.
Eliminations included: Consoli¬

an unusually low ratio.
income for the quarter

Chemical

C orp or a

-j

penses

w,|re eiimihated.;

evident, growth through the sale
in

cashed

ing Corporation, National Inves¬

IN a tional Crosses

the

improve¬

olina

totaled

Safeway

and Atlas Powder

the

investors

Fund Insurance Co., Great Atlan¬
tic & Pacific Tea Co., North Car¬

from

the quarter, realized securi¬
profits totaled $8,552,863 and

Gross

substantiallyreduced,, and
in

Net assets reached

hedged

31, re¬

rose

$524,629,520 while
went up from $6.94

other

South

$4,894,201,

holdings in Grand Union

those

•

during

year

progressed and

investments

•

explained,

carefully

early part of last

Selected

common

pre¬

was

Jan.

assets

profits rose by $31,351,829.
:
Investors bought $28,446,883 in
new
shares in the three months,

Transmission.*, The;

and Texas Gas

the fund's

the

riiuii/etid s CWi.

the

stocks and

convertible

NaJkudf

Fund

Bond

report

unrealized

acquired last No¬

The

ninetyfor the

mon
stock c ommi'tm.ent s in
Champion Spark Plug Co., First
final
quarter of the year were National City Bank of' New York,
made
in U. S. Plywood, Walter ^Hanoyer Bank and McGraw-EdiE. Heller,
Ghdden)^Inla^<ii $.tee^ jsofi. The equity holding in Ster¬
James
Talcott,
Owens, .; Illinois ling Drug was eliminated.
Glass, Libbey, Owens, Ford Glassy

merged into the fund.

common

Oil

Co.?(N. J.)„ Central
West
Corp., ^Polaroid
Aetna Life Insurance Co;,
Continental Casualty Co., Florida
Power
Corp.,
and- Winn-Dixie
&

New common stock additions to
the portfolio during the last
quar¬
ter
of
1958 included:
Fireman's

value

Standard

Stores.

its

$7.27.

while

sharp rise in
assets chiefly to higher prices

net

\t>

stock posi¬

our common

63.5%.

were

assets

new

Thursday. March 12, 1959

Corp.,

at ^

ended

net

$477,785,334

ties'

pe¬

history.

that

He attributed

120

one-year

Henry T. Vance, President of
the
large
balanced
fund,
told

INVESTMENT

total

stock

and

holders

FUND

substan¬

ports

heavier

high levels:

which represents by far the larg¬
amount subscribed by share¬

MUTUAL

quarterly
months

tion

ended Jan. 31.

reveals

disposed of

ninth

Fund,

three

tial amount of bonds, substituting
a
commitment
in
the
common

Boston

year

the

est

un¬

To New

Walworth Company,

Fruit,

deemed interesting
circumstances.

der

Company;

Corporation.

quarter

door

added

during the quarter in¬

agement

Boston Fund Rises

$7.69

was

compared with $6.98 on Oct. 31,

portfolio

Affiliated

es¬

$524 Million

By ROBERT R. RICH

value

asset

net

Assets Now

re¬

1959, shows

Jan. 31,

Mutual Funds

High

Fund's

Puritan

Affiliated Fund

upon

request

Lord, Abbett & Co.
New York

Chlcagt

—

Atlanta

lo»

Angeles

«,

Volume

iron,

189

Number 5828

The Commercial and Financial Chronicle

'5Vi\e°Sst 'swiefisfue N. Y. Capital Fund

Of Canada Net

™

UAudofficSpfd directors

Te-dlecte& at the meeting.

ber'31,

totaled

1958

AOC

•»

New Feature in

Inaugurates

Contractual Plans

the

1958

rent

annual

report of General Investors Trust.
At

market

close.

Dec.

31.

net

fiscal year, Hugh Bullock,
President, told shareholders in the
accompanying the fund's
_
„

Zefr

goals

4-V*

ORT'-I 4C

1 O

4-L

lllvmuiiy

the

from

income

net

from

ixei

income

num

mvesmrcms

increase

amoumea

zo.iy0.

Corporation of America

of America.

o^\was:$51T,798 in 195,8 and net real-

(Income

dividends

for

the

iock said

«>ld was totaled 28c a share.)
U. S.-domiciled fund in the Calvin ",$731,985, a total of $1,249,783. In,
General Investors Trust reBullock group, consisted on Jan, accordance with
the investment ported new highs in both shares
4 311 of stocks of 51 Canadian cor- Pol'cy P* 'he Fund 110 dividends outstanding and shareholders
at
porations plus Canadian. Govern- fere paid during the year, income the end oi its fiscal year
"mentand corporate bonds and from, investments
and realized
Total shares outstanding on

88 056 in

Assets of the

—t—

fund, which is the

t'tdtal

tersest

™

Dle^heU

aSete ln\4sted fn stocl5

"ifirfue

Fimrl-c
13 %
'giiilOllCCI rilllCI S lNt*L
Z
*

;

short-term liquid items

nfbpr

nrinritipc:

The

report stated that "when
national accounts have been

^SCt^^BoSe. - llcffhiPTV
„le
5AVonUthA
Q?0Z Li Poof Yf!I"
Jrm
net

assets

the

riain

lu r
"r, Total
r

nosted

hieh record in

new

Pioneer.

jem»

I,1,

,nirr,|w,

snare-

mullock told the

overall charges to total
plated payments,

..The

lieve,

apfivifv

Thp

Fund, Inc.r climbed to a new high . t ,
f . t
f
and cervirp<;
(honooiZaKQ
01
IOSQ—total OUtpUI OI gOOqs ana services
of $30,385,858 at
Dec. 31 „

saies of shares (less load charges)

were a record $2,183,171—216.4%

•***? +195J
accordm§ to its national distrib-

few:

nuclear

;

$16.32
gain of
36.92% above the $12.16 at the end

asset valueper share rose to
at

the

of the

1958,

realized

gam

sales of investments was

last

from by

$611,645.

added the

Electric

William

president

dealer

recenUy

noftfied

Damroth,

of Nucleonics,

For

or-

common

stocks

Rochester

and

Gas

Co. to its portfolio.

the

increased

period, the fund
holdings in

same

its ,bond

Vice- Boeing Airplane Co., TemcoAir-

Chemis-

craft, the Chicago, Rock

island

that Pacific Railroad, and The Martin
they had been selected from the Co, and its common stock posimany active NCE dealers to retion in Seaboard Air Lines RailZ; He also reported that currently ceive the handsome silver "Oscar," road, Hammond Organ Co., The
vassets of Pioneer Fund are ap- the NCE President's Trophy, for New " England
Electric
System,
r^proximating the $32,000,000 level, outstanding sales in 1958. When and Southern Natural Gas. It also
{-.with net asset value per share ever possible, there will be a increased its holding in the cumuaround $16,84, up 3.8% from the formal presentation of the trophy lative preferred stock of El Paso
year-end figure of $16.32.
j before a monthly meeting of each
Natural Gas.
try & Electronics Shares, Inc.,

^?8

$7,229,874, Mr. Carret pointed out.

*>■*
"

"In

ceeds

ties

addition

sources

$3,068,325 pro- of the winning firms. Among the
portfolio securi- top twelve were North American

1958, Pioneer Fund's re- Planning Corporation, Planned Esincreased through the in- states, and Metropolitan Planning
of
$3,463,843
by the in New York City; Rhulen Plan-

vestment

Of redemptions,
oi redemptions

Mr.

made
•/

during the year" ,
aqnng me yea

said.

Carret

available

management to

The

funds

were

thus
by

used

resented

its

and Associated investors in

jr^ankfurt, Germany.
in his letter of congratulations,

portfolio

year

;

se~

$809,156,

Trust

held

57.1%

of its

assets

common

and receivables.

National Stock Series Report to

accompanying

the

58th
consecutive
dividend
pay¬
ment shov/s that total assets of the

Get the facts on

FRANKLIN
CUSTODIAN

an all-time high of
$174,305,303 on the quarter ending
January 30,1959. This represented
a

52% increase

224 total

Mutual Funds

seeking possible growth and income
vestment

through in¬

in American industry.

BOND SERIES

COMMON STOCK SERIES

INCOME SERIES

UTILITIES SERIES

PREFERRED STOCK SERIES

64 Wall Street

•

New York 5, N. Y.

Dreyfus Fund Hits

"Its

con¬

sponsored

National

and

Securities

managed by

the

Dreyfus Fund in
assets, net asset value

total

net

l^^as compared^o

assets

value

$12,566

from

per'
per

$8,494

ro«e
rose

per

including

industry
holdings in the portfolio on Janu-

iron,

which

It, lV^t AflQu* VnlnA

III IN6t ASSet ValUC
Net assets

share.

of International Re¬

Fund

increased to $18,during the fiscal year
30, 1958, from a total
of $16,606,363 on the same date in
1957, it was stated by President
Coleman W. Morton in his annual
report to the shareholders. Net
asset value per share of the 4,602,398 shares outstanding on Nov. 30,
1958, was $4.09, compared to $3.75
per share on the 4,424,155 shares
outstanding at the close of fiscal
1957. After adjusting for the 18cents-per-share cash distribution
made in February, 1958, this represented an increase of 13.8%. Be-

Total number of shares increased

sources

828,728

2,914,202 from the level of 1,792,986 at the close of 1957.
Portfolio changes in the fourth
quarter
included
purchases
of
American & Foreign Power; Arkansas

Louisiana Gas; Briggs &
Stratton;
Burlington;
Celanese;
Chicago
Pneumatic;
Gimbel,
Hertz, Martin Co., Merck, Minneapolis-Honeywell, National City
Lines,
Pan-American
Sulphur,
Philco,
Pitney-Bowes,
Rexall,
Reynolds Metals, U. S. Foil "B"
from

ended Nov.

the portfolio
Ry.; Chrysler; tween the low point in February
Cities Service; Dome Mines; East- and the end of the fiscal year net
ern Air Lines; Getty Oil; Homeasset value per share increased
stake Mining; Kerr-Addison, Mas- 25.8%.
onite; National Acme; National
Net investment income for the
Cash Register; National Gypsum; Fund for the
year under review
Santa

Pure Oil; Quaker Oats; Ruberoid;
Southern

Ry.; Union Oil of Cali¬

fornia and Warner-Lambert.

Edward D. Jones & Co.
LOUIS,
^GUIS, Mo. Edward A.
Bircher
has
become associated

XlSJmmrJw

Fund include two producers of oil
and natural gas—Dome Petroleum

Limited

(Special to Thb Financial Chronicle)

nTI Fr?

$459,060 as compared with
$427,802 for the previous year.
was

Important new portfolio hold¬
ings for International Resources

Edward A. Bircher Joins

qnn

and

Monterey Oil.; Also

in the energy fuels category is a

newly acquired holding in North
American Coal Corporation.

^hangel L Bir^was forrI,n^'wftlZwhfc)^tfad

railroads

•

KcpOftS CrHlU

^ar'ear'

iier fieureor$15 231 324nnrlnPt
asset

"j "bw

..ne!_ass®P

the

planholders

standing1 Th^tetal ^et^as^ets

1™™!'

COmiPar1ed to1 ^636,439.
The largest individual
were

contractual

number in the millions."

per

capital gains distribution of $0.26 per share. On S
January
30,
1959
shareowners be
associated for 25 years.
numbered 51,477 compared to 46,ix/Hk A
C
psliarowle
023 a year earlier while shares
Wlth A*
wards i>Ons
outstanding
totalled
19,750,224 '
(special to the financial chronicle)

convenient way

Research

$9Or09OrfgainrOofe 32%*

arv

9
a

income," Mr. Benedick said.
rapidly growing acceptance
me
that, before many

years,

All time highs were reached by

earlier.
™

tie

convinces

New Records

the $114,775,-

During the same 12 month pe^
riod asset value per share of the

and

FRANKUN CUSTODIAN FUNDS, INC.

over

year

adjustment for

about this series of

rent

fund stood at

fund

FUNDS

sponsoring]

to build for the future out of cur¬

Eliminated

High in Assets

ten-year investment programs.

h *$.*/

now

addition

plan method

more."

were

shareowners

Find out

„n

tractual plans, I. P. C. distributes
shares -of
virtually

and Tennessee Gas Transmission,

]\at'l Stock Series

"nce^sSIs® gro^h^thlt Readies Ail-Time

pllshed the fund over $4,000,000 in
earlier, plus purchases of 15 new total assets and over $7,000,000 in
items, he stated.

totaled

against sales of $479,902.
As of Dec. 31, General Investors

credited these twelve

add to Pioneer's Mr. Damroth

holdings of 36 issues already rep-

curities

stocks, 36.8% in bonds
Monticello, N. Y.; Mutual
Fands of America in Washington, and preferreds, and 6.1% in cash

purchasers of 238,516 shares, net mng in
i

Fourth quarter purchases of

sale of

+vw

automa¬

mnrp

Atchison, Topeka & Santa Fe

Railroad

Twelve mutual fund

and the increase m unrealized ap-

p,i+

"tor, Investors Planning Corp. of cal research, special metals and fares of virtually all mutual
• '
jet propulsion. Bullock Fund, as funds and currently services<over
The ratio o£ redemptions to a 'growth fund' has an investment 60»°°0 accounts.
sales was a low 7.1%, compared in companies engaged in every
"More and more investors are
13.5% the previous year.
one of these industries—and many coming to regard the contractual
r>nrinoff»A
IQ^fl
lacf
nuhhtpr.
"
nbn mpfhntl
nnnimn{nn4

the

NCE "Oscar"
w-

the

America.

and

12 Dealers Win

previous year, he added.

$766,224,

be_

investor

tained.

energy,

tion, chemicals, electronics, guided
missiles, high energy fuels, medi-

quarter,
1958^$^ bilUon''c<^Sd „»««« 1958
positions in the
.^compared with thei Dec. 31,.1957 with $31.4 billion in 1957." The 9- L.T- of the Commonwealth of
bonds
figuie^ of $19,731,553, .PhBiP - k* quHook-; for " the year 1959 is Australia, the City of Montreal,
CaEet' President said in the Net M
and„ ^
rt gaid
and Kerr-McGee Oil Industries,
nual report to shareholders.

Plans>

new

improved
offer, the

contem-

™

•

selection

income from invest- on_the like 1957 date.
InrtST ing his financial goals." Mr.
ment* and net, realized gam on at The fund had 3,715 shareholders tries have been created and many Benedick said.
the 1958 close, compared with
nnir»+^
securities; was $1,128,81$.
3,025 at the end of the previous are expanding.
Some appear to
.5® P?:teTE.°Ht rtthat a11 of, t£e
Of the Fund's net assets on \
hold great promise for the future
v! fi1
ivi If e?i ,enj°y®d bY
Decem'Bef 31, 1958, approximately yeai' $9r a 22.8% rise.
—and to offer profitable onnor- planholders of I. P. C.'s exclusive
profitable oppor¬
87% was in equity securities and Z
General liwestors Trusts 1958 tunities for the investor. Here are contractual plans have been re-

«ThThe

combified net

pa-

rj)er product?, oil and gas, non4, ferrous metais and the food and
'. beverages
groups,
Mr.. Bullock' s^iid.
:C
-'

numbed

^Cfe the; business.. In 1957.5^9% gain over the 528,858 total ^6^ck^th^g* !^ac^ leeway in planning and establish-

con-l

paper'.and

represent

with attractive future growth
posabilities is a challenging prob-

sold being re- Dec. 31 amounted to 829,542 for a

gain on. securities

nerrentases

'the

also

outstanding

■

vj'p-th

but

change is designed

S for grater flexibility in that it
JDUIinerna«S nf allows Planholders to set larger
of its shared objectives at no Urease in their
monthly payments, but with an
■
actual decrease in the ratio of
investments,

value of its investment*

year

an-

tannine

-fund's investments.

was

payments

Investors

said the
rived

increLhJg

without

mTntly^ents^s^

nounced

end record, of $6,233,032 as com- per share to shareholders of record
xiri
TPnlv

r\nv»A/l

taveS®

penholders to set hieter
ment

report

assets of the Boston-based invest- 105th quarterly dividend. It was
.ment company came to a year- paid March 2 at the rate of 10 cents

disclosed

$28,094,860,

'»

of Canada, Ltd. on Decem¬

Fund

Pays

£?1 rt

Assets Increment

Capital

9/vtl
_
,| T nequal to $36.69 a share on 765,759
iZOlll \JUHrt0I ly mJIV• Shares outstanding on that date,
according to the Fund's .annual
.-Total net assets
of Canadian
report f0r 1958. At the close of the
tjFund, Inc. at Jan. 31, 1959 Ui»/voi ' receding year net assets were
were
-.11
®
^
yl ^7

I. P. C.

Assets Up Sharply Gain in Fiscal 1958

were

Net assets of New York

Canadian Fd.

Bullock Fd. Notes

General Investors
Had 91.4% Assets

044,325.

Z largest

(1223)

and

accounted

BELLEVILLE 111. — James F.
Smith has joined the staff of A. G.
Edward & Sons, 13 Public Square.

Announce
ciation
Atlantic
will

Joins Hornblower & Weeks

Programs

Consumers

The

Bankers

States

held

Asso¬

that

announced

has

the

sectional

June

meeting
25-27 at the

Wyianno Club, Hyannis, Mass.
A

rw.

Gn Aug. 9-21 the School fC

sumer Banking

steel

for

Consumers Bankers

will be held at the

VTevity °f Virginia' Gharlottes-

value, respectively. Auto parts acCHICAGO,
111. — Charles
M.
counted for 8.89%, tobacco 7.80%, Parrish has joined the
staff of
utilities .7.68%
and retail trade Hornblower & Weeks, 134 South

a"
The ^nual Convention of the
Association is scheduled for Oct.
14-17 at
the Warwick Hotel,

7.25%.

Philadelphia.

13.15%

and

13.05%

of total

asset

(Special to The Financial Chronicle)

Salle

Street.

The Commercial (lncl Financial Chronicle

(1224)

Thursday, March

it INDICATES

Now in

Securities

■■/; Acme Oil Corp., Wichita, Kan.
(letter of notification) 95,830 shares of common

Feb. 4

Price—$1.50 per share. Proceeds—For
development of oil and gas properties. Office—Orpheum
Bldg., Wichita, Kan. Underwriter—Lathrop, Herrick &
6tock

shares of

'Smith. Inc.. Wichita, Kan.

filed 400.000 shares

Inc.

common

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.

American Mutual Investment

filed

Mining Co.
outstanding shares

640,660

common

Alaska Mines & Metals

Inc.

(par $1),

of which 1,000.000 shares are to be offered publicly and
431.200 shares are to be reserved for sale to the holders

.of 6% debentures due

1962 issued by 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

share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,

per

Alaska.

Underwriter—To be named by amendment.

if Alco Oil & Chemical Corp.

common

supplied by amendment.

stockholders.

Office

—

Price—

Proceeds — To selling
Avenue anei William

Trenton

Kraus, Cleveland, Ohio.
Publishers,

general corporate purposes. Office—665 S. Ankeny St.
Portland 14, Ore. Underwriter—First Pacific Investment

Corp., Portland, Ore.

Aloe

(A. S.) Co. (3 16-20)
Feb. 20 filed $2,500,000 of convertible subordinate deben¬
tures dlie March 15, 1974. Price —• To be supplied by
amendment.
Proceeds—.For working capital and other

corporate

purposes.

Underwriter

—

Goldman,

Sachs &

Co., New YorkNov. 24 filed 100,000,000 shares of capital stock.

Price—

Two cents per share.

Proceeds—To selling stockholders.
Office—Magsaysay Building, San Luis, Ermita, Manila,
Republic of Philippines. Underwriter — Gaberman &
Hagedorn, Inc., Manila, Republic of Philippines.
American Buyers Credit Co.
Nov. 13 filed 5,000.000 shares of common
stock, of which
4,545,455 shares of this stock are to be offered for public
sale at Si.75 per share. [Shares have been issued or are
under

with various policv holders
In American Buyers Life Insurance Co. and American
Life Assurance Co. (both of Phoenix)
permitting them
to purchase stock at S1.25 per share.
Sales personnel
tiave

agreements

been

given the right to purchase stock at $1.25
per share up to the amount of commission they receive
ion stock sales made by them.] Proceeds—For the
opera¬
tion of other branch offices, both in Arizona and in other
Office—2001 East Roosevelt,

•tales.

Phoenix, Ariz.

Un¬

derwriter—None.
American

Fidelity Life Insurance Co. (3/17)
280,000 shares of common stock (par $1).
supplied by amendment.
Proceeds—For
working capital for expansion purposes. Office—Penjsacola, Fla. Underwriter — Alex. Brown & Sons, and
18 filed

R. S. Dickson & Co, Inc.
American

Nov.

cent).

Growth

Fund, Inc., Denver, Colo.
1,000,000 shares of capital stock (par one
Price—At market.
Proceeds—For investment
filed

Office—800

Security

Building,

Denver,

writer—American Growth Fund

curity

Colo.

Under¬

Sponsors, Inc., 800 Se¬

Bldg., Denver 2, Colo.

it American Investors Syndicate, Inc.
Feb.

(letter

of notification)

mon stock
(par 10 cents).
Proceeds—For operation of
513 International Trade

100,000

Price—50
an

cents

per

apartment hotel.

share-

Mart, New Orleans 12, La
Underwriter—Assets Investment Co., Inc., New
Orleans.
Louisiana.
American-Marietta Co.
12 filed

3,500,000 shares of common stock (par $2)
and 67,310 shares of 5% cumulative
preferred stock (par
$100) to be used in connection with the acquisition of
stocks and

assets

other companies,

of which 677,900

stock

common

(par 10

for

each

■

mining

Office—710 South Fourth

expenses.

Street,

Underwriter—None.

Bellechasse Mining Corp. Ltd.
Oct. 29 filed 800,000 shares of common stock
(par $1).
Price—Related to market price on Canadian Stock Ex¬

change, at the time the offering is made.

Proceeds—To reduce short-

be applied

the balance of

over

1958 and

Proceeds—To
the next

three

follows: for annual assessment work on the com¬
pany's properties (other than mining claims in the Mt,
Wright area in Quebec); for general prospecting costs;
years as

Co., Providence, R. I. and Merrill, Turben & Co., Inc.,

and for general administration
expenses.

Office—Mont¬

Cleveland, Ohio.

real, Canada.

it AMP Inc.

(Washington, D. C.) in the United States and by Forget
& Forget in Canada, Statement effective
Jan. 27.
/..r :r

(4 1)

March 8 filed

104,000 shares of endorsed

common

stock.

Price—To

be supplied
by amendment.
Proceeds—To
selling stockholders. Underwriters—Kidder, Peabcdy &
Co. and Blytb & Co., Inc., New York.

^ Ampex Corp.
March

was

that

the

directors

the basis of

one

new

share for each

Proceeds—For general corporate purposes.

Amphenol-Borg Electronics Corp.
3

stock.

filed

100,000

outstanding

share
will
or

after

April 24.

the

York.

of all

for each $4

discharged; rights to expire about two weeks
mailing of offer. Price—$4 p"** share. Proceeds—
current

pay

creditors.

Address

—

Box-506,

None. Offer¬

Peabody & Co., White, Weld & Co. and Shields & Co.
(jointly). Bids—To be received up to 11 a.m. (EST)-on
April 22 at 49 Federal St., Boston, Mass.

it Armco Steel Corp. (4/1)
March 11 filed $75,000,000 of 25-year sinking fund de¬
bentures due 1984. Price—To be supplied by amendment.
Proceeds—For plant expansion program. UnderwriterSmith, Barney & Co., New York.

Brookridge Development Corp.
19 (letter of
notification) $200,000 of 6% 15-year

Dec.

convertible

debentures. Price—At par
Proceeds—For expansion and

($500 per unit).
working capital. Office—
Ave., Brooklyn 27, N. Y. Underwriter —
Sano & Co., 15 William
St., New York, N. Y. YY/YY',,.
901

(letter of notification) 3,000,000 shares of com¬
stock (par one cent). Price — 10 cents per share.

Proceeds—For

Seneca

mining expenses. Office—c/o Hepburn T.
Armstrong, Round Up Heights, Cheyenne, Wyo. Under¬

Feb. 17 filed

writer—BrunorLencher, Inc., Pittsburgh^ Pa.

Butler Brothers,
certain

provides

Bowling Centers, Inc.

Nov. 24 filed 300,000 shares of 20-cent cumulative
vertible preferred stock (par one cent) and

payment

able bidders: Halsey, Stuart & Co.
Inc.; Stone & Webstqr
Securities Corp.; Kuhn, Loeb & Co., Salomon Bros.'1
&
Hutzler and Wood, Struthers & Co.
(jointly); Kidder,

selling stockholder. Office—1830 South 54th Ave.,
Chicago. 111. Underwriter—Hornblower & Weeks. New

Associated

Edison Co.
(4.-22)
Y^'y^Y:March 6 filed 40,000 shares of preferred stock
(par $50).
Proceeds—To reduce short-term bank loans.
Under¬
writer—To be determined
by competitive bidding. Prob¬

New York Stock Exchange at time of offering. Proceeds

mon

one

* Brockton

—To

Jan.

creditors

ing—Has been delayed.

common

Price—Related to the current market price

offered to current

Bridgehampton, L. I., N. Y. Underwriter

(3/23-24)
of

part of claims, at the rate of

of claims

Underwriters

& Co.

holders of record Nov, 1, 1958 on the basis of one
riew
for each four shares
held; unsubscribed shares

have

—Blyth & Co., Inc., San Francisco and New York; arid
Irving Lundborg & Co., San Francisco, Calif, Registra¬
tion—Expected any day.
March

Nicholas Modinos

Bridgehampton Road Races Corp. <
(letter of notification) 15,000 shares of common
(par $1) to be offered for subscription by stock¬

shares held

about April 6, 1959; rights to expire about

on or

—

Oct. 23

(4/6)
announced

Underwriters

stock

stock, which will be offered to stockholders

common

Stores.

con¬

Chicago, III.

30,000 shares of

Ben

Franklin

services

and

common stock

to be offered

Franchise Holders.

merchandise

Company

Ben

Franklin

Underwriters—None.

California Electric Power Co.

50,000 out¬
standing shares of common stock (par one cent). The
preferred shares are to be offered for public sale for the

Feb.

account

determined

—To be supplied by amendment.

Proceeds—To aequire
bowling centers and increase working capital (part
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.
Offering—Expected in two weeks.

common

Co.

Office—704 Virginia
derwriter—None.
Australian

Jan.

Peabody & Co.
on

Street, Reno, Nev.

Un¬

Grazing & Pastoral Co., Ltd.

4,000,000 shares of common stock. Price—
At par (56J/4 cents per share).
Proceeds—To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.

Cisco, Tex. Underwriter—None.

Robert Kamon is President.
Automatic Canteen Co. of America

which,

A.M.I.
latter's property and assets, and the re¬
maining 166,354 shares are to be issued upon the exercise
for

options. Underwriter—None.

Bankers

Fidelity Life Insurance Co.
28,1958, filed 258,740 shares of common stock (par
$1), of which 125,000 shares are to be offered publicly
and 133,740 shares to employees pursuant to stock pur¬
chase options. Price—To public, $6
per share. Proceeds—
For expansion and other
corporate purposes. Office—AtUnderwriter—None.

•

California Financial Corp. (3/16-20)
27 liled 100,000 shares of
capital stock (par $1).
Price—To be supplied by amendment.
Proceeds—To

selling stockholders.
Office—San Jose,
writer—William R. Staats & Co., Los

Calif.
UnderAngeles, Calif. r

•'vY Canal-Randolph Corp.
Jan. 28 filed 816,721 shares of
being offered in exchange for

common

stock

(par $1)
and preferred
Stockyards Corp. at rate of 1% CanalRandolph shares for each United Stockyards share held.
In lieu of
stock, a cash offer of $15 per United Stock¬
yards share was also made. Both offers expire on March
common

stock of United

19.

Underwriters

New

York Hanseatic
Corp., New
Ltd., London, England.
The
former has agreed to acquire not in excess of
162,500

Rea

—

Brothers

shares of Canal-Randolph
common; and the latter a
maximum of 110,500 shares at a price of
$9.25 per share.

(par $1.60). Price—$3

★ C-E-l-R, Inc.

(3 19)
(letter of notification) 34,750 shares of class A
stock (par $1), of which
8,000 shares will be
reserved for employees.
Price—$6.50 per share.
Pro¬
Feb.

100,000 shares of common
share. Proceeds—For

per

common

ceeds—For

working capital.
Office—734 Fifteenth St..
W., Washington, D. C. Underwriter—Alex. Brown &
Sons, Baltimore, Md,

Cemex of Arizona, Inc.
Nov. 17 (letter of notification) 300,000 shares of
stock

Bankers Preferred Life Insurance Co.
Jan. 30 (letter of notiifcation)
stock

(jointly); White, Weld & Co.; and Kidder,
Bids—To be received up to 9 a.m. (PST)
office of O'Melvany &
Myers, 433 So.

the

Feb.

lanta, Ga

York, and

March 2 filed 292,426 shares of common
stock, of
the company proposes to issue 126,072 shares to
Inc.

March

Spring SU Los Angeles 13, Calif.

voting stock (par

13 filed

Office—1301 Avenue L,

—

Feb.

$10). Price — $25 per share.
Proceeds — To purchase
additional contribution certificates of Great Basin Insur¬
ance

300,000 shares of common stock (par $1).
To reduce bank loans. Underwriter
To be

Stearns & Co.

be used

50,000 shares of

—

by competitive bidding. Probable bidders:
Merrill Lynch, Pierce, Fenner & Smith
Inc.; The First
Boston Corp., Carl M.
Loeb, Rhoades & Co. and Bear,

new
'o

(3/31)

27 filed

Proceeds

of the company and the common shares will
be offered for the account of a
selling stockholder. Price

com¬

Office

Proceeds/—

For

borrowing and for working capital. Office—
c/o Edgar L. Miller, President, 20725 Shaker Blvd.,
Shaker Heights, Ohio. Underwriters—E. R. Daveport &

of stock

—

Feb.

one

444.246

Las Vegas, Nev.

term bank

Feb. 3 filed

Enterprise Fund, Inc., New York

American

Price—To

share.

filed

★ Bella Coola Exploration Corp.

Atlas Investment Co.

Oct. 30 filed 487,897 shares of common stock. Price—At
market.
Proceeds—For investment.
Distributor—Ed¬
ward A. Viner & Co., Inc., New York..
Feb.

per

Underwriter—None.

Inc.

Feb. 27 (letter of notification) 980,000 shares of common
stock. Price—At par (10 cents per share).

Armstrong Uranium Corp.

American Asiatic Oil Corp.

Issuable

basis

Atomics

Price—At prevailing market price, in the Overthe-Counter Market. Proceeds—To selling
stockholder^
Underwriter—None.
L'

^ American Vitrified Products Co.
March 3 (letter of notification) 10,000 shares of common
stock (par $1) to be offered for subscription by stock¬
the

Street, Philadelphia, Pa.

cents).

17, 1958, filed 375,000 shares of common stock (par
Price—$4 per share. Proceeds—To purchase equip¬
and supplies and for working capital and other
corporate purposes. Office—Salt Lake City, Utah. Un¬
derwriter—Amos Treat & Co., Inc., of New York.
Change in Name—Formerly
United States Telemail
Service, Inc. Offering—Expected early in 1959.

•

Inc., Portland, Ore.

?]'ov. 28 (letter of notification) 22,000 shares of common
stock (par $1). Price—$8.50 per share.
Proceeds—For

•

Walnut

it Basic

Feb.

stock

(no par). Price—$3 per share. Proceeds—For expansion
acquisition or leasing of new sites. Office — 2210

March

Price—$30

and

American Telemail Service, Inc.

stock.

Street, Philadelphia, Pa. Underwriter—Chace, Whiteside
& -Winslow, Inc.. Boston, Mass.; and Ball, Burge &

Allied

Bargain City, U. S. A., Inc."

Dec. 29 filed 5,000,000 shares of class A common

held.

■

approved the issuance of about 183,000 additional shares

(4/1-8)

March 5 filed 500,000 shares of
To

Co., Inc.

zine, 1201 Highland Drive, Silver Spring, Md., is Presi¬

holders

Feb. 25 filed 1,431,200 shares of common stock

ISSUE I

incidental to operation of an insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, Colo.
Underwriter—Ringsby Underwriters, Inc., Denver 2.
Cold,
:
■
/• Y

ment

stock, of which 300,000 shares are to be offered cur¬
rently and the remaining 340,660 shares in the future,
price—To
be supplied by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard. Los Angeles, Calif.
Underwriter—Lester, Hyons
& Co., Los Angeles, Calif. No public offering expected.

REVISED

pany.

notes, second trust notes and construction loans.
Company may develop shopping menters and build or
purchase office buildings. Office—900 Woodward Bldg.,
Washington, D. C. Underwriter—None. Sheldon Maga¬
dent.

ITEMS

expenses

$1).

Alaska Juneau Gold
29

preferred

Oec. 17, 1957, filed 490,000 shares of capital stock. Price
—$10.20 per share. Proceeds — For investment in first

Dec.

stock and 2,500 shares of

trust

Advanced Research Associates,

Dec.

common

stock have already been issued.

(par SI).

ADDITIONS

SINCE
•

12. 1959

(par 25 cents).

common

Price—$1 per share. Proceeds—
Address—P. O. Box 1849, 3720 E.
32nd Street, Yuma, Ariz. Underwriter—L.
A. Huey Co.,
Denver, Colo,

For working capital.

Volume 189

Number 5828

• Cerro

The Commercial and Financial Chronicle

filed

Corp.
$8,040,200 of 5V2% subordinated deben¬
(convertible until Dec. 31, 1968) and 61,522 shares of common stock to be issued to stockholders
4

(1225)

de Pasco

March

NEW ISSUE CALENDAR

tures due 1979

solved and liquidated.

March

Corp., which is to be dis¬

of Consolidated Coppermines

Underwriter—None.
'

(Offering

March

Chicago Aerial Industries, Inc. (3/24)
160,000 shares of common stock (par $2),
of which 80,000 shares are to be offered for the account
of certain stockholders. Price—To be supplied by amend¬
ment. Proceeds—For working capital. Office—1980 North
Hawthorne Ave., Melrose Park, 111. Underwriter—Blyth
& Co., Inc., New York.

Feb. 27 filed

Research

Specialties
(Myron

California

(3/24)
$25,000,000 of first mortgage bonds, due

filed

Proceeds— Payment

of bank loans and

general

bidding. Probable bidders: First Boston
Corp.; Dillon, Read & Co., Inc.; Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; and White, Weld & Co. Bids—
Expected to be received up to 11 a.m. (EST) on March 24

Financial

Consumer

Amos

Treat «&. Co.,

offered for

(Alex.

Brown

the basis of

■

share for each 15 shares held

(Sano

30,000

March

Commerce Oil Refining Corp.

203,250

(Alex.

General

Builders

;

Food

Fair

United

•

Common

Corp

Louisiana

100,000 shares

Fholocopy Corp.—under¬
Co., Inc.) $217,334

Lyon

(Bids

275,000 shares

(3/16-20)
(letter of notification) 54,000 shares of 30-cent
cumulative convertible preferred stock (par $1) Price—

Preferred

March

(Tuesday)

share. Proceeds—For operation of a small loan
business. Office—904 Hospital Trust Bldg., Providence,

Cleveland

per

Underwriter—McLaughlin, Kaufman & Co., New

(Bids

share.
Will

common

a.m.

the

sale

the

common

stock

used, in
shares

the holders elect to tender for redemp¬

repurchase of the company's outstanding 4% cumulative
preferred stock and to provide funds to be advanced
to its subsidiary, Cooperative G. L. F. Holding Corp.,
for similar purposes. Office—Terrace Hill, Ithaca, N. Y.
Underwriter—None.

a.m.

(Kidder,

(C.

General

Transistor

mon

stock (par 10 cents).

—For

mining

Seattle 1,

expenses.

Wash.

Price—$1 per share.

Cormac

& Pacific Tea Co., Inc.—Common
(Smith, Barney & Co., Morgan Stanley & Co.,
Kuhn, Loeb & Co. and Carl M. Loeb
1,800,000 shares

Edison

Proceeds

(3/23-27)

Jan. 22 filed 108,667 units of 108,667 shares of common
stock (par one cent) and 108,667 common

warrants, each unit consisting of one
-•

•

stock purchase
common share and

Continued

(Bids

Paso

Electric
<Bid3

Corp.)

$30,000,000

76,494

(Tuesday)
Bonds

Co
11

a.m.

EST)

$3,500,000

a.m.

EST)

$2,000,000

Preferred

Co
11

May 25

(Monday)

Bonds

West Penn Power Co
(Bids

noon

May 28

EST)

$14,000,000

(Thursday)

March 26

June

(Tuesday)

(Bids to be invited)

$30,000,000 to $40,000,000

Common

Virginia Electric & Power Co

Equip. Trust Ctfs.
invited)

about $3,000,000

Inter-Mountain

Co.,

page

$25,000,000

(Tuesday)

June 25

(Thursday)

Bonds

Mississippi Power Co.
(Bids

to be invited)

$5,000,000

$2,313,500

Inc.)

Telephone
399.000

June 23

Consolidated Edison Co. of New York, Inc.—Bonds
(Bids to be invited) $50,000,000 to $75,000,OGO

(Friday)

Gray Drug Stores, Inc
Debentures
(Offering to stockholders—underwritten by Merrill, Turben
&

k—Debentures

Public Service Electric & Gas Co

(Thursday)

Texas & Pacific Ry
(Bids

Bonds

Southern Electric Generating Co
(Bids to be invited) $25,000,000

Bonds

Common

(Offering to stockholders—underwritten by Courts & Co.)
on

(Tuesday)

(Bids to be rcdeived) $20,000,000 to

com¬

Office—902 Seaboard Building,

Corp.

Electric

Debentures

Window Corp

(Cruttenden, Podesta «fc Co. and Clayton Securities Corp.)
$2,500,000

Underwriter—None.

Chemical

Paso

Common

Corp

March 27
•

Securities

Great Atlantic

Miami

520,000,000

Electric

200,000 shares

(Kidder, Peabody & Co. and "Iayden, Stone & Co.)
40,000 shares

Rhoades & Co.)

•

Bonds

May 19

—Common

„

Towbin Co.)

Unterbcrg;

(Bids to be Invited)

it Cordillera Corp.
2 (letter of notification) 300,000 shares of

Paso

40,000 shares

Common

Inc.——LL

(Thursday)

Co
Common
(Offering to stockholders—underwritten by Stone <fc Webster

(Glorc, Forgan <fc Co.) $50,000,000

Ohio

March

Power

May 12

Eurofund, Inc./.
F X

—Bonds

$20,000,000 to $30,000,000

April 30

Alabama

(Wednesday)

March

(Tuesday)

(Bids to be invited)

—Common

Securities Corp.)

Webster

(Bids to be invited)

Paine, Webber, Jackson & Curtis and

Peabody & Co.,

Stone

——Common
& Co.)
.

$15,000,000

EST)

(Friday)

—Bonds

—

Upper Peninsular Power Co

part, to repurchase such outstanding

tion, the balance to be added to working capital; the
proceeds from the debentures will be used to reduce
short-term bank loans; the proceeds from the preferred
stock will be used principally to provide funds for the

Preferred
$2,000,000

EST)

(Merrill Lynch, Pierce, Fenner & Smith and A. G. Becker
50,000 shares ;
.

Bonds

$25,000,000

EST)

Montana Power Co
(Bids 11

Proceeds—From

(Wednesday)

a.m.

Public Service Co. of Colorado—

Illuminating Co

$5,000,000

Maine Public Service Co

Common

160,000 shares

(Blyth & Co., Inc.)

Electric

York, N. Y.

it Cooperative Grange League Federation
Exchange, Inc.
March 6 filed $250,000 of 4% subordinated debentures,
15,000 shares of 4% cumulative preferred stock, and
300,000 shares of common stock. Price—$100 per de¬
benture, $100 per preferred share, and $5 per common

$1,750,000

Chicago Aerial Industries, Inc

Debentures

(Bids

April 28

Consumer Acceptance Corp.

(Tuesday)

Telephone

Edison

Salt Lake

Feb. 25

Bonds
$14,000,000

Invited)

April 24
Common

Corp

Waste King Corp
(Straus, Blosser & McDowell)

April 22
Brockton

——Common

Servateria

State

$300,000

(Van Alstyne, Noel & Co.)

;

(Wednesday)

(Bids to be invited)

Common

$5,891,280

Co.)

$7,500,000

$300,000

Corp
Barth

—.Preferred

Light Co

April 21
Diamond

Inc

Co.)

Common

$300,000

Wisconsin Power & Light Co

Common
Inc.)

Co.,

(Friday)
Co.)

(Tuesday)

April 14

Power &

April 15

Debentures

(Bids to be Invited)

Cormac

Murphy

Power

States

stock.

City, Utah. Underwriter—Earl J. Knudson & Co.,
City, Utah.

April 10
(Simmons

(Monday)

Research Fund,

Thermal

$2,475,000

Erdman, Smock, Hosley & Read, Inc.

Common

to be invited)

(Bids

Corp

(Bache

Inc.

-Equip. Tr. Ctfs.

Pittsburgh & Lake Erie RR

(Offering to stockholders—underwritten by Eastman Dillon,
Union Securities & Co.) $21,750,000

Investors

Co.,

(Tuesday)

April 7

$15,000,000

High Point Chemical Co., Inc

(J.

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Pro¬
ceeds—For investment. Office—450 So. Main St., Salt

-Common

Preferred

Stores, Inc

(Pearson,

(Monday)

stockholders—underwritten by Blyth &
Irvhig Lundborg & Co.) 183.000 shares

$2,131,000

(Hornblower & Weeks)

stockholders
written by Ross,

and

4,000 units

Co.)

Electronics

Bonds
.

Debentures

March 23

Cormac Chemical

(Thursday)

Co
(Bids 11 a.m. EST) $7,000,000

vM-

(Offering

Debentures & Common
&

■:

Equip. Trust Ctfs.

$7,620,000

Ampex Corp.

(Friday)

(No underwriting)

(Bache

—

April
—Common

Thorncliffe Park Ltd

Amphenol-Borg

v.,;;.

Power

25,000 shares

Inc.)

April 2

—Common

Corp

$1,500,000

Common
Co.,

(Bids noon EST)

$173,875

Co.,- Inc.)

Co., Inc.)

Southern Pacific Co

Gulf

166,716

Co.)

Preferred

(Stroud &

Finance

Texas Eastern Transmission Corp
&

Common

Peabody

(Stroud

Read

Common
1,799,057 shares

Pipe Co

(Kidder,

Common
127,500

& Sons)

March 20

$75,000,000

Co.)

iMning & Smelting Co., Ltd.—Common

Ritter Finance

stockholders—underwritten by
Co., Inc.) 42,193 shares

Kalman

(Dillon,

Lock Joint

(Thursday)

Brown

Barney

(White, Weld & Co.) 75,000 shares

Common

Indiana Steel Products Co

Commercial Investors Corp.
Nov. 28

Hudson Bay

Jones

Ritter

C-E-I-R, Inc., Washington, D. C.

(Offering

Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in units as follows: $1,000 of bonds and 48 share#
of stock and $100 of debentures end nine shares of stock
Price—To be supplied by amenu/nent.
Proceeds — To
construct refinery. Underwriter—Lehman Brothers, New
York. Offering—Indefinite.

104,000 shares

.-Debentures

(Offering to stockholders—bids 11 a.m. EST)

$300,000

Co.)

Common

(Smith,

Inc.)

Co.,

(Wednesday)

Armco Steel Corp

Common

Dec. 16,1957 filed $25,000,000 of first mortgage bonds due

Lake

Inc.)

White Stag Manufacturing Co
(Francis I. du Pont & Co.)

competitive

mon

200,000 shares

(Wednesday)

Columbia Gas System, Inc

Jackson & Curtis)

March

$16,000,000

(Kidder, Peabody & Co. and Blyth & Co., Inc.)

Simplex Wire & Cable Co
(Paine, Webber,

Bonds
EST)

a.m.

Supply Co. of Delaware-—Com.

500,000

Common

Jackson & Curtis and Mitchum,
Templeton) $5,000,000

Webber,

—

General Telephone Co. of the Southwest--Preferred
(Paine,

Common

$300,000

Inc.)

_,_Common

(Raffensperger, Hughes & Co.,

(Offering

bidding.. Probable bidders: Lehman
Brothers and Eastman Dillon, Union Securities & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Smith, White,
Weld & Co., Shields & Co, and R. W. Pressprich & Co.
(jointly); Morgan Stanley & Co. Bids—Expected to be
received up to 11 a.m. (EST) on April 1.
:

Dickson

Alco Oil & Chemical Corp.Common
(Chace, Whiteside & Winslow, ,Inc. and Ball, Burge & Kraus)

Common

„

(Tuesday)

and

■■

300,000

PST)

a.m.

April 1

$270,000

Inc. and Bruno-Lenchner,

(Tuesday)

(Stone & Webster Securities Corp.)

280,000 shares

(4/1)

struction expenditures. 'Underwriter—To be determined

Co.)

Foster-Forbes Glass Co.—

subscription by common stockholders

one new

(Bids

Preferred

Corp

Sons,

$297,500

Corp

Kaufman

Patterson Dental

Common B

Co.)

Standard Sign & Signal Co

April 1, 1959; rights to expire on April 20. Price—To be
named on March 3 f: Proceeds—To finance System con¬

Monongahela Power Co
Common

Fidelity Life Insurance Co.-

March 5 filed 1,799,057 shares of common stock (par $10)
to be

$8,000,000

(Bids

100,000 shares

Co.)

Weld

March

American

Co., IE.

$5,600,000

& Hutzler)

California Electric Power Co

$2,500,000

Corp

Acceptance

•'

-Ar Columbia Gas System, Inc.

Co.)

Staats

Preferred
&

Stearns

Bear

Bros.

Offering to stockholders—underwritten by Allen & Co.

AMP, Inc.

at Room 624, 55 Public Square, Cleveleand 1, Ohio.
Clute Corp.'
V-V'
Aug. 21 (letter of notification) 300,000 shares of common
■tock (par one cent). Price—$1 per share. Proceeds—To
pay additional costs of construction; and for retirement
of obligations and working capital. Office — c/o John
Harlan Lowell, 2200 Kenton, Aurora, Golo. Underwriter
—Lowell, Murphy & Co., Inc., Denver, Colo.

and Salomon

Co.

.Debentures
Sachs

(White,

corporate purposes. Underwriter—To be determined by

competitive

Brothers,

Lehman

Co.,

(Monday)

Chesapeake Life Insurance Co

•

Illuminating Co.

$1,500,000

(A. S.) Co
(Goldman,

$25,000,000

EST)

a.m.

Scranton-Spring Brook Water Service Co.—Debens.

$300,000

Co.)

March 16
Aloe

Price—$20
Proceeds—To invest in real estate. Office—

Electric

Bonds
11

March

(McLaughlin,

3748, 120 Broadway, New York, N. Y. Underwriter
—Model, Roland & Stone, New York. Offering—Post¬
poned indefinitely.
•

1984.

Haupt

Electronic Assistance

Room

Feb.

Lomasney &

Security Life Insurance Co. of N. Y._Com.
(Ira

Jan. 13 filed

.Cleveland

$2,500,000

.Common
•

Standard

suant thereto.

per share.

(Allen

Common

Corp.——;

Alstyne, Noel & Co.)

Public Service Co. of New Mexico

Common
$330,000

Hutton &

pany's

City Lands, Inc., New York
100,000 shares of capital stock.

(Van

Preferred
$1,250,000

Co.)

Ohio Power Co
(Bids

Industries, Inc

(William R.

$10,620,000 of Participations in the com¬
Employees Thrift Plan, together with 180,000
shares of common stock which may be purchased pur¬

Webber,

(Monday)

Corp

Fuller

Hoffman Motors

(Friday)

(Stanley Heller & Co.)

^ Cities Service Co.
March 6 filed

Products
(S.

by Paine,
164,842 shares

& Curtis)

Seal

$4,440,000

to stockholders—underwritten

Glass-Tite

Gold

Common

Jackson

March

Itek Corporation

St. Paul

St., Baltimore 2, Md. Underwriter—White, Weld
Co., Baltimore, Md., and New York, N. Y.

CST)

noon

Feb.

(Thursday)
Equip. Trust Ctfs.

Bids

•

^Chesapeake Life Insurance Co.,
Baltimore, Md. (3/16-20)
26 (letter of notification) 8,500 shares of class B
non-voting capital stock (par $10). Price—$35 per share.
Proceeds—To increase capital and surplus.
Office—611

Illinois Central RR

September 10

(Thursday)

Bonds

Georgia Power Co
(Bid3 to be invited)

$18,000,000
i

...

The Commercial and Financial Chronicle

(1226)

D. C.

warrant, to be offered for subscription by holders
Photocopy Corp. at the
of one such unit for every six shares of Cormac
Photography common held. Price—$2 per unit. Pro¬
ceeds—To finance the company's development and mar¬
keting program. Office—80 Fifth Avenue, New York.
N. Y. Underwriter—Ross, Lyon & Co. Inc., New York.

•

Cryogenic Engineering Co.

chase of 100,000 shares of class A common stock.

(in units of $500 each).

Kimball

Feb.

Co.,

Chicago, 111.,

Derson Mines Ltd.

June 5 filed 350,000 shares of common stock.

share.

Proceeds—For

Price—-$1

equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. Office—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.
Diversified

new

Inc., Amarillo, Texas

Jan. 6 filed 300,000 shares of common stock (par 50
cents). Price—$3 per share. Proceeds—For acquisition
of undeveloped real estate, for organization or acquisi¬
tion

used

consumer

for

finance

business, and balance to be

working capital.

Underwriter

—

Investment

Service Co., Denver, Colo., on a best efforts basis.

Drug Fair-Community Drug Co., Inc.
Feb. 10 filed $750,000 of 6Vz% subordinated sinking fund
debentures due March 1, 1974 (with warrants attached
to purchase 37,500 shares of $1 par value common stock
A). Price—At par (in units of $500 each). Proceeds—
To finance current operations, to open new drug stores
and to retire $60,000 of outstanding 8V2% debentures.
Office—Arlington, Va. Underwriter—Auchincloss, Park¬
er & Redpath, Washington, D. C. Offering—Expected to¬
day (March 12).

it Drug Fair-Community Drug Co., Inc.

expansion and

inventories. Underwriter— Auchincloss,
Parker & Redpath, Washington, D. ,C. Offering — Ex¬

pected today (March 12).

it Eagle-Picher Co.
March 4 (letter of notification) 6,521 shares of common
stock (par $10), at not to exceed an aggregate of $300,000r to be offered to employees pursuant to the com¬
pany's 1959 Employees' Stock Purchase Plan. Price—
95% of the closing price on the New York Stock Ex¬

said
Ohio.

the day on which allocations are made and
contracts accepted.
Proceeds — To purchase

purchase

stock.

Office

—

American

Building,

Cincinnati,

Underwriter—None.

Eastern Utilities Associates
Jan. 30 filed 96,765 shares of common stock

(par $10)
being offered for subscription by common stockholders
of record March 4,
1959 on the basis of one new
share for each 12 shares held (with an oversubscription
privilege); rights to expire on March 19. Price—$38.25
per share.
Proceeds — To reduce bank loans.
Under¬
writer—Stone & Webster Securities Corp.

it Eaton & Howard Stock Fund
Feb. 25 filed (by amendment) 2,000,000 shares of
capital
Price
At market.
Proceeds
For investment.

stock.

—

Federated Corp. of Delaware
29 filed $918,000 of 6% convertible

•

Electric Assistance Corp.
Feb. 18 (letter of notification)

(3/16)
100,000 shares of common
stock (par 10 cents) of which 5,000 have been reserved
for sale to two directors, at
$2.70 per share. The offer¬
ing of such 5,000 shares expires 24 hours after first be¬
ing extended. If not accepted such shares will then be
offered to the public.

Price—$3 per share. Proceeds—
development of ultrasonic equipment
and for working capital.
Office—20 Bridge Ave., Red
Bank, N. J.. Underwriters—Amos Treat & Co., Inc., New
York, and Bruno-Lenchner, Inc., Pittsburgh, Pa.

For research and

it Elva Imports Ltd.

E., Washington, D. C.

writer—None.
;

Emerite Corp.
Jan. 19 (letter of notification)
stock

(no par)

by stockholders
common

stock

The

subordinated

to offer
5210,000 of the debentures to purchase the capital stock
if Consumers Time Credit,
Inc., a New York company;
6442,000 of the debentures in exchange for Consumers
company

proposes

iebentures; and $226,000 of the debentures in exchange
for the outstanding 12% debentures of three subsidiaries
)f Federated. Office—1 South Main Street, Port Chester.
N.

Underwriter—None.

Federated
Nov.

Finance

Co.

(letter of notification)

$300,000 of 10-year 6%
Price—At par (in de¬
nominations of $1,000 each). Proceeds — For working
capital, to make loans, etc. Office—2104 "O" St., Lin¬
coln, Neb. Underwriters — J. Cliff Rahel & Co. and
Eugene C. Dinsmore, Omaha, Neb.
tenior subordinated

debentures.

it Filmways, Inc.
(letter of notification) 12,903 shares of common
stock (par 25 cents). Price — At market (estimated at
$7.75 per share). Proceeds—To selling stockholder. Of¬
fice—18 East 50th St., New York 22, N. Y.
Underwriters
—H. N. Whitney,
Goadby & Co., New York.
Feb. 27

Finance For

Industry, Inc.
Dec. 16 filed 200,000 shares of class A common stock.
Price—At par ($1.50 per share). Proceeds—For working
:apital. Office—508 Ainsley Bldg., Miami, Fla. Underivriter
R. F. Campeau Co., Penobscot Bldg., Detroit,
—

VJich.

it First Investors Corp. of New York
March 5 filed (by amendment) an additional $100,000,of Periodic

000

Payment Plans

Payment Plans (F and FN) and Single
(FP). Price—At market. Proceeds—For

investment.

First

Virginia Corp.
1,154,730 shares of class B common stock
(par $1), to be offered in exchange for 38,491 shares of

Feb.

filed

stock of Old Dominion Bank at the rate of 30
shares of First Virginia class B stock for each one share
of Old Dominion common stock.
Florida

Builders, Inc.
$4,000,000 of 6% 15-year sinking fund sub¬
ordinated debentures and 40,000 shares of common
stock,
to be offered in units of $100 principal amount of deben;ures and one share of common stock.
Price
$110 per
mit. Proceeds—For purchase and development of sublivision land, including shopping
site; for new equip¬
ment
and
project site facilities; for financing ex¬
pansion program; and for liquidation of bank loans and
)ther corporate purposes.
Office—700 43rd St., South.
St. Petersburg, Fla. Underwriter—None.
Dec. 1 filed

—

Fluorspar Corp. of America
Feb. 5 (letter of notification—as
amended) 300,000 shares
of common stock.
Price—At par ($1 per share). Pro¬
ceeds—For mining expenses.
Office—4334 S. E. 74th
Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties, Inc., 4314 N. E. 96th Ave., Portland, Ore.
•

Food Fair

Stores, Inc. (3/23) v.
$21,750,000 of 20-year convertible subordi¬
nated debentures due 1979 to be offered
initially for
subscription by common stockholders of record March 20,
1959, on the basis of $100 principal amount of debentures
for each 25 shares of common stock
held; rights to
expire on April 6, 1959. Price—At par (flat). Proceeds
Feb. 27 filed

general

corporate purposes, including additional
working capital and future capital expenditures. Under¬
writer—Eastman Dillon, Union Securities & Co., New

Under¬

three

the

to be offered for subscription
basis

one

shares of series

series

and/or series 2
unsubscribed shares to other stock¬

held;
Rights expire 30 days from offering date.
Price—$1 per share.
Proceeds—For working
capital.
Office—333 S. Farish Street,
Jackson, Miss. Underwriter
holders.

—None.

A
stock and 10,000 stock purchase
warrants, to be
offered in units of 10 shares of stock and one
warrant.
Price—$30 per unit. Proceeds — For general
common

corporate

j-;stock

(each $100 de¬

a warrant for the
shares at $3 per share
at any time' beginning Oct. 30, 1959 to and including
April 30, 1969). The company proposes to offer holders/
of its outstanding common stock and
its outstanding
cumulative preferred stock of record March 20, 1959, .the;
right to subscribe to a total of $1,631,000 of the debfen-/
tures with wairahts.- 'The remaining $500,000>o£ deben-^.
tures with warrants are to be sold to a group-of

chasers/-(^ho
who

have
of

amounts

rights

ai*e:

ai'fc

agreed

stockholders of the. comparij?)/purchase certain additional
with warrants if subscripfioii

also
also

debentures

not exercised in at least the amount of $500,^

000.

Price—$100 per unit. Proceeds—To repay promis¬
notes, and the balance, if any, will be added io
working; capital,, to be used• in - part to reimburse Thd
company's treasury for payments made upon the acqui¬
sition of land and as-working capital for such,building
projects as the company may undertake. Office—2413
Third Ave., New: York, N. Y. Underwriter—None. *£*
•
sory

Merchandising Corp., Memphis, Tenn. >A
of class "A" common stock
cent). Price—$10 per share. Proceeds—For/

General
Feb.

(par

(■!

filed 250,000 shares

one

working capital and general corporate
writer— Union
Tenn.

Securities

T''

.:;

purposes.

Under¬

Investment

Co., Memphis, ~
/'■ ' V'
'=:v' :v - i'i'-.

General Telephone Co. of The Southwest (3/17)
19 filed .250,000 shares of cumulative preferred

Feb.

stock.

Price—At par

($20 per share). Proceeds — To
Office—2470 West Princeton St., San.
Angelo, Tex. Underwriter—Paine, Webber, Jackson & .
Curtis, Boston. AanE71?ei^'Tbr1fii[. "and Mitchum, Jones and >
repay

bank loans.

Templetpn, Los Angeles, Calif.

it General- Transistor .Corp. .(3/25)
March 5 filed.40,000 shares of common stock.
The filing/
also includes an additional 26,841; shares of common
stock to be offered pursuant to options granted or to be
granted to officers and key .employees of the company.Price—Related io markpt price on the American Stock
Exchange. Proceeds—For new construction, machinery,
and equipment and wqrking
capital. Underwriters—t
Kidder, Peabody
Co. and Hayden,- Stone & Co., both
of New York."r
;/'•■
V/'V..;V,
<

•

Glass-Tite

Industries, Inc.. (3/13)
/r/-;
Jan. 30 filed 110,000 shares of common stock (par, JO.
cents). Price—$3 per..share.; Proceeds—To retire $35,000of 6% preferred stock; for research, development and im-.
.

provement of

new and present products; for purchase;
high temperature atmosphere furnace and additional'
equipment and the balance will be added to work-'
ing capital and be used for other corporate purposes/
Office—88 Spectacle St., Cranston, R. I.
Underwriter-^
Stanley Heller & Co., New York. <
"•

test

Gold
March

Seal

Products Corp. (3/36-4/3)
filed 125,000 shares'of 6%% cumulative con-'

vertible preferred stock (par $10). Price—To be supplied

amendment.Proceeds—To be

applied towards the'
mortgage held by A. J. Armstrong Co.,
Inc.; to the. prepayment of certain indebtedness secured
by accounts receivable; in prepayment of two promissory
balance due

notes; and the'balance lor-'working capital. Underwriter
—S. D. Fuller &

Co., New Yorlo.

Government^Employees Variable Annuity Life
Insurance Co.;;/,
V
Nov. 13 filed 2,500,000 shares of common stock (par $!)_
to be offered by company viz: (1) to holders of common
stock (par $4), of Government Employees Insurance Co./
on the basis of one warrant per share of stock held (1,334,570 shares ;ar'e now.outstanding); (2) to holders of
common
stock (par $1.50)
of Government EmployeesLife Insurance Co., on the basis of 1% warrants per share
of stock held (216,429 shares are now outstanding); and
.

Ga. Underwriter—None.

ing—Indefinitely postponed pending Supreme

Ind.

(3/17)

—

el 1 i n g
stockholders.
Underwriter — Raffensperger,
Hughes & Co., Inc., Indianapolis, Ind.

Foundation
Tan.
fered

Investment Corp., Atlanta, Ga.
common stock to be

filed 231,988 shares of

of¬

for

F X

R, Inc., New York (3/25-26)
March 3 filed 200,000 shares of common stock (par
$1),
of which 100,000 shares are to be sold for the account
of selling stockholders.
Price
To be supplied by
Proceeds—To

redeem

par

$127,500

6% debenture bonds due July 2, 1972, which are owned
in equal shares by the
selling stockholders, and to repay

$250,000 of short-term notes payable to Manufacturers
Trust Co.; to acquire machinery and
equipment; for
expansion and working capital. Underwriter
C. E.
Unterberg, Towbin Co., New York.

cision

variable annuities.-

Court de-,
-

•

•?

it Graham-Paige Corp.
March 11 filed: $50,000 shares of 6% cumulative pre¬
ferred stock <par $10 —
convertible^ until April, 1969).Price—To be supplied by amendment. Proceeds—To re¬
bank loans incurred in connection with purchase of
capital stock of Madison Square Garden Corp. Business

pay

—A closed-end
company.

non-diversified management investment
Underwriter—Bache & Co:, New York.

—

General Aniline & Film Corp., New York
Ian.

14, 1957 filed 426,988 shares of

common

A stock

(n«

par)

it Erdman, Smock, Hosley & Read, Inc. (4/10)
Feb. 26 (letter of notification) 100,000 shares of
class

common

subscription by stockholders; unsold portion
publicly. Price—$12.50 per share. Proceeds
—To repay notes.
Office—515 Candler Bldg., Atlanta,

Foster-Forbes Glass Co., Marion,

Feb. 25 filed 30,000 shares of common stock
(par $1.50).
Price
To be supplied by amendment.
Proceeds — To

amendment.

250,000 shares of series 3

will;' be accompanied by

(3) to holders of-common stock (par $5) of Government
Employees Corp.,, on the basis of Yz warrant per share o£
stock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
converted into ..common stock; prior to the record date,
a total of 164,733 common shares would be
outstanding.*
Price—$3 per-share. Proceeds—For capital and surplus.
Office—Government. Employees Insurance Bldg., Wash-;
ington, D. C. Underwriters — Johnston, Lemon & Co.,;
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New Yoik; and Abacus Fund, Boston, Mass. Offer¬

York.

—

each

1968.

to be offered

Feb. 24 (letter of
notification) 150,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To
pur¬
chase cars from Elva
Engineering Co., Ltd.; to repay a
promissory note and for working capital. Office—1401
Rhode Island Avenue, N.

stock for

due

Builders

213,100'shares

benture

Dec.

iebentures

General

purchase for cash of 10

—For

Office—Boston, Mass.

common

Underwriter—Glore, Forgan

common

Feb. 10 filed 55,000 shares of common stock A (par $1).
Price—To be supplied by amendment. Proceeds — For

change

St., New York.

(letter of notification) 30,027 shares of common
(par $3.33%). Price—$8 per share. Proceeds—To
selling stockholders. Underwriter—Westheimer & Co.,
Cincinnati, Ohio.

Proceeds—To

best efforts basis.

per

Wall

Co., New York.
Evans Grocery Co., Gallipolis, Ohio

Price

finance making of additional loans and to reduce shortterm debt.
Office—3800-34th St., Mt. Rainier, Md. Un¬
derwriter—Paul

chase

it Dalton Finance, Inc.
March 9 filed $500,000 of 7% subordinated debentures,
due Jan. 2, 1974, with attached warrants for the pur¬

Thursday, March 12, 1959

Corp., New York (3/20)
J
/
$2,131,000 of 6% subordinated debentures,
due April 30, T963, with detachable warrants to pur¬

—14

stock

Sept 22 (letter of notification) 150,000 shares of class A
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds — For repayment of loan; purchase of plant and
office equipment; raw materials and supplies; and foi
working capital, etc. Office—U. W. National Bank Bldg..
1740 Broadway, Denver, Colo. Underwriter—L. A. Huey
Denver, Colo

Feb. 26 filed

rate

Hay 13 at Room 654, 101 Indiana Ave., N. W., Washing
ton 25, D. C., but bidding has been postponed.

Eurofund, Inc. (3/25)
2,500,000 shares of common stock (par $1).
Price—$20 per share. Proceeds—For investment. Office

of the common stock of Cormac

—At face amount

Office — 1008 Sixth St., N. W., Washington,
Underwriter—Simmons & Co., New York.

purposes.

Continued from page 41
one

and 1,537,500 shares of common B stock (par $1)
Proceeds—To the Attorney General of the United States

it Gray Drug Stores, Inc. (3 27)
6 filed $2,313,500 of convertible debentures due
1974, to be offered for subscription by common stock¬
holders of record on or about March 27, 1959, on'the;
basis of, $100 of debentures for each seven shares held.
Price—To be supplied by amendment. Proceeds—To re¬

March

Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bo»

tire

ton

the

Corp.
(jointly);
Kuhn,
Loeb
&
Co.;
Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received
up to 3:45 p.m. (EDT) or

•

term

issued

loan

indebtedness

and

th§ balance of note

by the company as part .of the consideration for
assets of The King Drug Co.; for capital expend¬

itures; and the balance for working capital. Underwriter
Turben & Co., Inc., Cleveland. Ohio.

—Merrill.

Volume

189

5828

Number

The Commercial and Financial Chronicle

(3/25)
stock (par $1).
Price
To be supplied by amendment. Proceeds—To
selling stockholders. Underwriters — Smith, Barney &
Co;, Morgan Stanley & Co., Kuhn, Loeb & Co. and Carl
M. Loeb, Rhoades & Co., all of New York.

•

Great Atlantic & Pacific Tea Co., Inc.

(1227)

Home Telephone & Telegraph Co.
»

—

Lakes

Great

Natural

Gas Co.,

Feb. 12 (letter of notification)

Weld

working

Office

capital.

Ave,; Philadelphia 24, Pa. Underwriter—None.
Gridoif
Feb.

fered
,

Freehold

Leases

Indiana

" *

Calgary, Canada.—,.'.

Y
Harzfeld's, Inc., Kansas City, Mo./.. /
/

Heartland

Oct.

voting
offered
of

J"//' "/;,/.

■/:'

City, Mo. '

Institutional

one

stock

common

held

',Y.

Nov.

Stockholders will have 45 days in which to

•1958.

ment.

Heliogen Products, Inc.
(letter of notification) 28,800 shares of

Oct. 22
6tock

§1)..

(par

Price—$5

per

share.

commou

Feb.

•

Raceway,

including

track,

land,

grandstand,

mutual

clubhouse.

Underwriter—None. '

Hoffman

Motors

Corp.

which

rights

common

stock (par $1),

164,842

March

30.

The

remaining 14,000

eligible employees.

Price—$30

share. Proceeds — To be used for acquisition of
Fhotostat Corp.; to purchase additional laboratory, pro¬
duction and other equipment; towards construction of
a
-

building

new

plant site in Lexington, Mass.; and

the balance for general

Underwriter
Curtis, Boston and New

corporate purposes.

Webber, Jackson

—Paine,

(3/30-4/3)
v.
common,stock (par $1),
to be publicly offered and

expire

per

plant

March 9 filed 260,000 shares of

total

shares will be offered to

building, stables and paddock, dining hall, service build¬

and

Itek

Fund, Inc.

shares will be ^ offered for
subscription by stockholders at the rate of one new share
for each four shares held on or about March 10, 1959;
of

Inc., Hinsdale, N. H.
capital trust certificates evidencing 1,000,000 shares of capital stock, and 2,000 debenture notes.
Price—The common stock at par ($1 per share) and the
notes in units of $500 each.
Proceeds—For construction
a

Research

Investors

(3/12)
Feb. 12 filed 178,842 shares of

Dec. 29 filed

of;.

York.

Inc.

4 Manhasset

are

Home-Stake Production Co., Tulsa,
Nov.

filed

116,667 shares of

Price—$6 per share.
general

corporate

Bldg., Tulsa, Okla.

common

stock

(par $5).

Proceeds—For working capital and
Office — 2202 Philtower
Underwriter—None.
-

purposes.

Nov. 28

stock

writer

Okla.

and $2,500,000 of certificates in the Lennon»Co.
Office—750 Main

gram,

Travelers Stock Investment Program.

to acceptance

by holders of at least 80% of the outstand¬
ing Altec stock. Statement effective Feb. 26.

it Lock Joint Pipe Co. (4/1)
...»
March 3 filed 166,716 shares of common stock (par 33!A:
cents), of which, 136,716 shares are to be sold for'the
account of selling stockholders. Price—To be supplied

Proceeds—For working capital and gen¬
Underwriter—Kidder, Peabody
Co., New York.
v

eral corporate purposes.
&

Telephone Co.
(letter of notification) 1,562 shares of common
(no par) to be offered for subscription: by stock¬
holders on a pro rata basis at the rate of one mew share
for approximately each 75.1120 shares held at the close
at business on Feb. 2, 1959. Price—$32 per share. Pro-£
ceeds
To reimburse the treasury.
Office-— 203 W.
Feb.

stock

—

Ninth St., Lorain,

Ohio.

Underwriter—None.

Power & Light Co.

Louisiana

(4/14)

March 3 filed

75,000 shares of cumulative preferred stock
(par $100). Proceeds—For property improvements and
other corporate purposes.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬

White, Weld & Co., Blyth & Co.,"
(jointly); Merrill Lynch, Pierce,
Smith, Kidder, Peabody & Co. and Harriman
Ripley & Co., Inc. (jointly); Salomon Bros. & Hutzler,
Eastman Dillon, Union Securities & Co. and Equitable
Securities Corp. (jointly); The First Boston Corp. and
sey, Stuart & Co. Inc.;
Inc. and Shields & Co.

Fenner &

Glore, Forgan & Co. (jointly). Bids — Expected to be
received up to 11:30 a.m. (EST) on April 14.
LuHoc

Mining Corp.

Sept. 29 filed 350,000 shares of common stock.

Price—$1

share. Proceeds — For the acquisition of properties
option and for various geological expenses, test
drilling, purchase of equipment, and other similar purooses.
Offices—Wilmington, Del., and Emporium, Pa.
per

under

Underwriter—None.

Magic Mountain, Inc., Golden, Colo.
27 filed 2,250,000 shares of common stock. Price—
$1.50 per share. Proceeds—For construction and working
capital. Underwriter — Allen Investment Co., Boulder,

Jan.

Colo.,

on a

best-efforts basis.

it Massachusetts Life Fund
March 4 filed
(by amendment)

an
additional 600,000
3,500 Trust Certificates.

shares of Beneficial Interest and
Price—At

market.

Proceeds—For

Hospital

Life

investment.

Insurance

Trustee

Co.,

Boston,

Mass.

it McQuay, Inc.
9 filed 50,000 shares of common stock.
Price—
supplied by amendment.
Proceeds—For capital
expenditures and working capital. I Office—1600 Broad¬

March
To

way Northeast, Minneapolis,
& Co., Inc., Milwaukee, Wis.

Minn. Underwriter—Loewi

it MeadowhiH Golf Club, Inc., Farmingdale, Me.
3 (letter of notification) 800 shares of common
Price—At par ($100 per share). Proceeds—For

March

stock.

operation of

golf club.

Underwriter—None.

it Metals & Pertoleum Corp.
March 4 (letter of notification) 90,000 shares of common
stock (par $1).
Price—$2.50 per share. Proceeds—For
mining expenses. Office—312 Byington Building, Reno,
Underwriter—None.

Nev.
•

Miami Window

Feb.

filed

(with stock

Corp., Hialeah, Fla. (3/25)
$3,500,000 of 6%% debentures due 1974

purchase warrants attached), and

of 70-cent

150,000

convertible preferred stock (par $8).
of preferred stock, $10

Alstyne, Noel & Co., New York.

250.000

Stock

Program; $2,500,000 of certificates in the
Lennon Co. Connecticut General Stock Investment Pro¬
Investment

Price—Of debentures, at par; and

(letter of notification) 200,000 shares of common
(par "10 cents). Price—$1 per share. Proceeds—To
acquire machinery and equipment and additional space
for test laboratories; and for working capital. Office—

which

Co., Hartford, Conn.
of securities, as follows: $2,500,-

in the Lennon Co. Aetna Life

000 of certificates

Itemco

10,000 shares to officers and employees. Price—$10 per
shares to public; $9 to employees. Proceeds—To selling
stockholder.
Underwriter — For public offering: Van

(lay A.)

March 9 filed $7,500,000

—Massachusetts

(3/23-27)
Jan. 9 filed 490,940 shares of common stock. Price—$12
per share.
Proceeds—For investment. Office—922 Laguna St., Santa Barbara, Calif. Investment Advisor—In¬
vestors Research Co., Santa Barbara, Calif. Underwriter
—Bache & Co., New York.

common

ing, administrative building, penthouse, tote board

Price

of principal amount. Proceeds—For invest¬
Office—511 Fifth Ave., New York, N. Y. Under¬

100%

writer—None.

(par 25 cents). Price—At prices generally prevail¬
ing. on the American Stock Exchange.
Proceeds — To
selling stockholders.
Office—250 Park Avenue, N. Y.

Hinsdale

Underwriter—None.

1964, to be offered in units of $1,000.

due July 31,
ment.

stock

Underwriter—None.

Analysis

Grapho

Funding Corp. of New York
filed $500,000 of 10% subordinated debentures

—At

com¬

stocks (par 10 cents).

it Lennon

Investors

—For

Highway Trailer Industries, Inc.
Nov. 24 filed 473,000
outstanding shares

of Florida
(letter of notification) 55,555 shares of common

Lauderdale, Fla.

Price—$1 per share. Proceeds
production equipment for nylon conversion proc¬
ess;
to establish factory and offices and for working
capital.
Office — 44 Shore Drive, Great Neck, N. Y.
Underwriter—Pearson, Murphy & Co., Inc., New York.

mon

notes

(par two cents). Price—$4.50 per share. Proceeds
—For capital account and paid-in surplus.
Office—At¬
lantic Federal Building, 1750 E. Sunrise Boulevard, Ft

(3/23-27)

300,000 shares of

short-term

stock

//Y/..AV;''/Y

(letter of notification)

Investment Corp.
Oct.

Medico, Inc., North Arlington, Va.
Feb. 27
(letter of notification) 80 shares of preferred
stock. Price—At par ($1,000 per share). Proceeds — To
erect medical center in Herndon, Fairfax County, Va.
Office—4900 16th SI., North Arlington 9, Va.
Under¬

reduction

Underwriter—None.

Herndon

it High Point Chemical Co., Inc.

market.

Society, Inc.
Feb. 24 (letter of notification) 2,000 shares of 6% noncumulative preferred stock.
Price — At par ($25 per
share). Proceeds—For purchase of equipment and work¬
ing capital.
Office—Wilhoit Bldg., Springfield 4, Mo.

payment of past due accounts and loans and general
working capital. Office — 35-10 Astoria Blvd., L. I. C
3, N. Y. Underwriter—Albion Securities Co., Suite 1512
11 Broadway, New York 4, N. Y.

March

derwriter—None.

Lorain

Underwriter—Courts

it International

Proceeds—For

writer—None.

Bank, Washington, D. C.
/
$5,000,000 of notes (series B, $500,000, twoyear, 3% per unit; series C, $1,000,000, four-year 4% per
unit; and series D, $3,500,000, 6-year, 5% per unit). Price
—100% of principal amount.
Proceeds — For working
capital. Underwriter—Johnston, Lemon & Co., Washington, D. C.

exer¬

,/;

—

International

Address—P. O. Box-348, Albany, -N. Y. Under
.

Price

Dec. 29 filed

rights. Price —At par.
proceeds — To repa>
debts, acquisition of investments, and for general pur¬
writer—None.

shares.

Fund

Co., Atlanta, Ga. and
New York, for 219,341 shares; balance to be offered to
two principal stockholders—Southern Bell Telephone &
Telegraph Co. and Chesapeake & Potomac Telephone
Co. of Virginia.
-;//•■•';
v-

the

poses.

Proceeds—For

banks.

about

Growth

^Inter-Mountain Telephone Co. (3/27)
March 5 filed 399,000 shares of voting common stock,
which is to :be offered
for subscription by common
stockholders of record March 20,. 1959, on the basis of
two new shares for each five shares thep held; rights
to expire on April 10. Price—To be supplied by amend¬

of non¬
convertible preference stock (par $12) to bt
for; subscription by stockholders on the basis
share, of convertible preference stock for eact

10 "shares

cise

be sold for the

by amendment.

3,099,900

Proceeds—For investment.

Development Corp.
(letter of notification) 22,320 .shares
..

it Institutional Shares Ltd., New York
March 4 filed (by amendment) an additional

18, 1959; rights to expire on or about
Price—To be supplied by amendment. Proceeds

ment effective Nov. 18.

amendment. Proceeds—For general corporate
Underwriter—Stern Brothers & Co., Kansas

purposes.

July 24 filed 600,000 shares of common stock ^par one
rent). Price—$1 per share. Proceeds—To develop and
jperate graphite and mica properties in Alabama. Un¬
derwriters—Dearborn & Co. and Carr-Rigdom & Co.
both of Washington, D. C., on a best efforts basis. State¬

7,500 shares are to be sold for: company's account and
38,700 shares for selling stockholders. Price—To be sup¬
plied

shares held

// St., Hartford, Conn.
//•'/.;;:■://• /::/•" / ,:'/'
• Industrial Electronics Co., Inc.
•
(letter of notification) 8,000 shares of common
Ling Electronics, Inc.
Price—At par ($25 per share). Proceeds—To pay
Jan. 27 filed 335,000 shares of common stock, to be of¬
fered in exchange for the outstanding capital stock of
outstanding notes and for working capital. Office—99
Orove Street, Rockland, Mass. Underwriter—None.
Altec Companies, Inc., on the basis of one-share of ,Ling;
stock for one share of Altec stock. The offer is subject
Industrial Minerals Corp., Washington, D. C.

seven

Trail Corp. some 3,784.9 acres of land on or
May 1, 1959; and the remaining 120,000 shares are
account of a selling stockholder. Un¬

before

stock.

11 filed 46,200 shares of commqnstock, of which

March

Mound

(3/19)

share for each

R., Inc.; 750,000 shares will be used for the exercise
an
option by the company to purchase from Big

March 3

;

construction, machinery and equipment, and to
provide additional funds for working capital and other
corporate purposes. Office—405 Elm St., Valparaiso, Ind.
Underwriter—Kalman & Co., Inc., St. Paul, Minn.

★ Gulf Power Co. :■ (4/2) ■■
v
*
March 6 >filed $7,000,000 of first mortgage/ bonds due
April 1, 1989. Proceeds—To repay short-term bank loans
and for construction program. -Underwriter—To be de¬
termined by competitive bidding. .Probable
bidders:
Halsey, Stuart.& Co. Inc.; Merrill Lynch,.Pjerce, Fenner
& Smith; Salomon Bros. & Hutzler, and* Drexel & Co.
•(jointly);, Eastman . Dillon, Union Securities & /Co.;
Equitable Securities Corp.; Kidder, Peabody & Co. and
White,Weld & Co. (jointly); Blyth & Co., Inc. Bids—
To be received up to 11 a.m. (EST) on April 2 at South¬
ern
Services, Inc., Room 1600, 250 Park Avenue, New
-

Co.

Min¬

—For

/■/

Corp.
3,492,000 shares of common stock, of which
2,622,000 shares were issued in exchange for all of
the common stock of Desser & Garfield, Inc., and D. G.

Mar¬

about March

April 2.

—

'/;

Products

one

Lefcourt Realty

—

offered for
rate of

Exploration ^o., Inc., Arnett, Okla.
Dec. 23 filed 400,000 shares of common stock. Price—$2
per share. Proceeds—For machinery and equipment and
exploration purposes. Underwriter—None.

42,193 shares of common stock (par $1)
subscription by common stockholders

be
the

stock (par 10
cents).
Price—At market.
Proceeds—For investment.
Office —1825 Connecticut Avenue, Washington, D. C
Investment.
Advisor
Investment
Advisory
Service,
Washington,, Dy-C. Underwriter—investment Manage¬
ment Associates, Inc., Washington, D.. C.; ;

17, N. Y.

Steel

filed

sinking fund redeemable notes, series A, due July 1,1976,
cn the basis of 200 shares for each $1,000 note,
Office—

York

Ltd.

Growth Fund of America, Inc.
/ ■
Feb. 4 filed 250,000 shares of common

Price—At
—

Ave., Minneapolis, Minn. Underwriter
neapolis Associates, Inc., Minneapolis, Minn.

Feb.

Laure

Jan. 29 filed

quette

filed 563,600 shares of common stock to be of¬
in exchange for $2,818,000 of. 5%% convertible

330'Ninth Avenue, West,

Co., New York.

March 2 filed 600,000 shares of common stock.
market.
Proceeds — For investment.
Office

Frankford

4675

—

Exchange.
Underwriter—White,

selling stockholder.

Underwriter—None.

Ave., Yonkers, New Yr%k.
1

/ Imperial Growth Fund, Inc.

stock (par $10) and 20,000 shares of
common
stock (par $2) to be offered in units'of one
share of each class of stock. Price—$13 per pint. Pro¬

selling stockholders./Price — At current market when
offering of 90,000 shares is made. Office—400 Nepperhan

expire on *».pril 3.
Price—At par ($5 per
Proceeds—To repay short-term bank loans. Un¬

roceeds—To

& Co..

preferred

ceeds—For

27, 1959,

lated to market price on the New York Stock

per

remaining

share for each four shares held:

it Hudson Bay Mining & Smelting Co., Ltd. (4/1)
march 6 filed 75,000 shares of capital stock. Price—Re¬

150,000 shares of common

it Greater Finance Co., Philadelphia, Pa. v/4
March 4 (letter of notification) 20;,000 shares of cumu¬
lative

record Feb.

mciviiolaers

one n:

derwriter—None.

;*■

■

$2.50

share).

Inc.

St., Erie, Pa. Underwriter—John G. Cravin

New York.

the basis of

rights

stock (par 25 cents).
Price—$2 per share. Proceeds—
For;- drilling wells and working capital. Office—632 W
9th

share, from Nbv. 1,1959 to Nov. 1, 1961. The
90,000 shares will be sold publicly; 50,000,
shares on behalf of the company and 40,000 shares By

of Virginia

Feb. 19 filed 92,160 shares of capital stock to be offered

March 4 filed 1,800,000 shares of common

—

Under¬
Co., 205 East 85th St., New

Ave., Port Washington, L. I., N. Y.
Fennekohl

York, N. Y.
J.
Feb.

Corp., Boston, Mass.
Mid-America

Jan. 19 filed

Minerals,

Inc.

100 units of participations in Oil and

Gas

(the "1959 Fund"). Price—$15,000 per unit. Pro¬
ceeds
For working capital, etc. Office — 500 MidFund

Plastics Manufacturing Corp.

16 filed

per share.
Proceeds—To pay accounts payable and for
general corporate purposes. Underwriters—Cruttenden,
Podesta & Co.,
Chicago, 111.; and Clayton Securities

—

120,000 shares of common stock, of which

30,000 shares are issuable upon exercise of warrants,

Continued

page

The Commercial arid Financial Chronicle

(1228)

America Bank Bldg., Oklahoma City,

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—

Midamco, Inc.,

At par ($1 per

Continued jrom page 43

wholly-owned

Okla. Underwritersubsidiary, Oklahoma

City, Okla.
Millsap Oil & Gas Co.
shares of common stock. Price—$1
per share. Proceeds — For additional working capital.
Office—Siloam Springs, Ark. Underwriter—None.
Dec. 23 filed 602,786

^ Mineral Resources Inc.
Feb. 25 (letter of notification) 5,000 shares of
etock.

Price—At

Calif.

common

($10 per share). Proceeds—For
Address—R D No. 1, P. O. Box 255,
Petersburg, N. Y. Underwriter—None.

(letter of notification) 800 shares of common
(no par) to be offered to a selected group of in¬
Price—$42 per share. Proceeds—To purchase
100,000 shares of common stock of Phillips-Foscue Corp.

vestors.

Underwriter—None.

May 5 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—Tc
pay loan; to acquire fishing tools for leasing; and foi
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment Co., Inc.,
Houston, Tex.

Mississippi Chemical Corp., Yazoo City, Miss.
shares of commop stock (par $5)
8,000 shares of special common stock (par $75).

Dec. 24 filed 200,000
ciiid

Price—For
common

stock, $8.75 per share; for special
stock, $131.25 per share. Proceeds—For con¬
common

struction program, to purchase shares of Coastal Chem¬
ical Corp.
(a subsidiary), and the balance will be
ndded to surplus.

Underwriter—None.

Statement effec¬

tive Feb. 27.

Monongahela Power Co. (3/31)
24 filed $16,000,000 of first mortgage bonds due
April 1, 1984. Proceeds—For construction program. Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union Securities & Co. and Salomon Bros. &
Hutzler (jointly); Harriman Ripley & Co., Inc.; Equit¬
able Securities Corp.; W. C. Langley & ,Co. and The
First Boston Corp. (jointly); Merrill Lynch, Pierce, Fen¬
ner & Smith; Kidder,
Peabody & Co. and White, Weld
& Co. (jointly). Bids—Expected to be received up to
Feb.

—

(EST) on March 31 at West Penn Electric Co.'s
Office, 50 Broad St., New York, N. Y.
a.m.

Montana

Power

Feb. 26

(letter of notification) not to exceed 4,285 shares
stock (no par) to be offered to employees
under the company's Employees' Stock Purchase Plan.
Price—$70 per share. Proceeds—To purchase said stock.

common

Office—c/o John
way, Butte, Mont.
O

Montana

Earl

Corette, President, 40 E. Broad¬

Co.

July 1 filed 100,000 shares of
The stock

common

stock

(no par).

will

be offered only to bona fide residents
Price—To be related to the current market

|>rice on the New York Stock Exchange. Proceeds —To¬
gether with other funds, to carry on the company's conCtruction program through
1959.
Manager-Dealers
Smith, Barney & Co., Kidder, Peabody & Co. and Blyth
«& Co., Inc.
Offering—Indefinitely postponed.
—

•)V National Acceptance Corp.
Feb. 27 (letter of notification)
$150,000 of lVz%
eubordinated convertible"

10-year
debentures dated March 15,
1959 and due March
15, 1969, and 150,000 shares of class
A common stock (par 50
cents) to be offered in units
consisting of $100 of debentures and 100 shares of com¬
stock.

mon

Price—$200

per

company. Office—8425 Georgia

Underwriter—None.

initial

insurance

Ave., Silver Spring, Md.

par ($10
share). Proceeds—For working capital. Office—1307
Bldg,, Detroit 26, Mich. Underwriter—None.

Industrial

Theatres, Inc.

Dec. 30 filed

$20,000,000 5Vz% sinking fund subordinated
debentures due March 1,
1974, stock purchase warrants
for 454,545 shares of common stock
(par $1) and 485,550
warrants to purchase
debentures and stock
purchase

warrants.

The debentures and stock
purchase warrants
Are being offered in
exchange for National Telefilm As¬

sociates, Inc.

common stock and
outstanding stock pur¬
chase warrants. Basis of
Exchange—Shareholders of Na¬
tional Telefilm will receive
$11 principal amount of de¬

purchase warrant for one-quarter share of
National Theatres stock in
exchange for each share ol
National Telefilm. For each
outstanding warrant of Na¬
tional Telefilm, the holder will receive an
a

exchange

cant for the purchase of $11 of
debentures and
for the purchase of one-quarter share of

war-

warrant

National The-

©tres

common.

The offer expires March
16, 1959. Dealer& Co., Cantor, Fitzgerald

Managers—Cruttenden, Podesta
&

Co., Inc., and Westheimer & Co.

★ National Trust Life

& Accident Insurance Co.
(letter of notification) 100,000 shares of com¬
mon stock (par $1).
Price—$2.20 per share. Proceeds—
To operate and write insurance.
Office
c/o

March

—

Aubrey

Cecil Rhodes, President and
Treasurer, 2273 Essex Drive

Augusta, Ga. Underwriter—None.

land, plant and equipment. Office—404
Block, Butte, Mont. Underwriter—None.

inventories.

Silver

(3/25)
$30,000,000 of first

mortgage

bonds

Pioneer Hydrotex Industries, Inc.
(letter of notification) $300,000 of 6% subordi¬
nated sinking fund convertible debentures (fully regis¬

March 25.

tered), due March 1, 1969. Price

(3/30)
$25,000,000 of first

interest.

(EST)
Oil, Gas & Minerals, Inc.

stock

(par 35 cents).

Price—$1

per

it Public Service Co. of New Mexico

(3/30)
56,000 shares of cumulative preferred
stock, 1959 scries ($100 par) with attached warrants en¬
titling the holders to purchase an aggregate of 168,000
shares of common stock. This includes 2,000 preferred
shares to be offered to company employees. Price-—To
be supplied by amendment. Proceeds—For construction
program and other corporate purposes, including re¬
payment of $1,000,000 of bank borrowings. Underwriters
—Allen & Co., Lehman Brothers, Bear Stearns & Co.,
March

March 30.

share.

commoB

Proceeds—

For development of oil and gas
properties.
Office—51J
International Trade Mart, New Orleans 12, La.
Under*
writer—Assets Investment Co., Inc., New

$692,000 of 6% 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 per
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—Ctf the public
offering, will be used for additional working capital

— At par and accrued
acquisitions, etc.
Office—267

den, Podesta & Co., Chicago, 111, and Schneider, Bernet
& Hickman, Dallas, Texas.

Inc.; Kidder, Peabody & Co. and Merrill Lynch, Pierce.
Fenner & Smith Inc. (jointly); Eastman Dillon
(Union
Securities & Co. and Salomon Bros. & Hutzler
(jointly);
Harriman Ripley & Co. Inc., and Stone & Webster Secu¬
rities Corp. (jointly); Blyth & Co., Inc.
Bids—Expected

Nov. 16 (letter of notification) 116,000 shares of

Proceeds—For

Meadows Bldg., Dallas 6, Texas. Underwriters—Crutten¬

mortgage bonds due
1989. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined
by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

to be rebeived up to 11 a.m.

Price—$27 per share. Proceeds
Underwriter—White, Weld

program.

Feb. 5

Ohio Power Co.
filed

March 16.

construction

Co., New York.

Pilgrim Helicopter Services, Inc.
9 (letter of notification) 12,000 shares of common
(par $3). Price — $5 per share. Proceeds — For
working capital. Office—Investment Bldg., Washington
5, D. C. Underwriter—Sade & Co., Washington 5, D. C.«

Halsey,
Inc.; Morgan Stanley & Co.; Glore, Forgan
Co.; Eastman Dillon, Union Securities & Co. and
White, Weld & Co. (jointly); The First Boston Corp.
on

$1)

stock

(par

Jan.

due

Stuart & Co.

Bids—Expected to be received

expire

—For

1989. Proceeds—For property additions or
improvements
and new construction.
Underwriter — To be deter¬
mined by competitive bidding. Probable bidders:

Feb.

stock

at the rate of one new share for each 10 shares;held on
Feb. 27, 1959 (with an oversubscription privilege); rights

commot

Price — $3 per share. Proceeds — For
capital.
Office—11 Flamingo Plaza, Hialeah
Fla. Underwriter
Henry & Associates, Inc., 11 Fla¬
mingo Plaza, Hialeah, Fla.
filed

being offered for subscription by common stockholders

working

Charlotte, N.

Ave.,

Piedmont Natural Gas Co., Inc.
4 filed 57,651 shares of common

stock (par $1).

Feb.

Atando

Feb.

Oak

Ridge, Inc.
Sept. 4 (letter of notification) 100,000 shares of

Office—332

Underwriter—None.

filed

E. F. Hutton &
of New York.

Co., ; and- Salomon Bros. & Hutzler, all
„.

...

Prudential Enterprises^: Inc.! <
Jan. 15 (letter of notification) 200,000 shares of eommon
stock (par one cent) of which 170,000 shares are to be

O. K. Rpbber Welders, Inc.
15 filed 60,600 shares of common
stock, $43,333.33
of 314% debentures
maturing on or before May 6, 1965,

25,000 shares of 6V4 %
cumulative preferred stock
(with common stock purchase
warrants attached) offered to stockholders
Ion Feb. 16;
rights expire on March 16, 1959. Shares not subscribed
and paid for will be offered to
employees and others by
the company commencing March"16.
Price—At

bentures and

(letter of notification) 1,600 shares of common
Price—At par ($100 per share).
Proceeds—To

Dec.

National Finance Co.,
Detroit, Mich.
3an. 27 (letter of notification)

National

finance

Orleans,- La.

unit. Proceeds—To purchase

additional conditional sales agreements and as
investment in the capital stock of a credit life

per

^ Northwest Livestock Co.
Feb.

stock.

Under¬

tUt Perfecting Service Co.
" '
Feb. 26 (letter of notification) 23,250 shares of common
stock to be offered for subscription by stockholders on
a pro rata basis.
Rights expire in 15 days. Price—At par:
($10 per share). Proceeds—For accounts receivable and

Ohio Edison Co.

Power Co.

of Montana.

Chapman &

Corp., the selling stockholder. Underwriter—None,

i North American Exploration Co., Inc.
(letter of notification) 3,000,000 shares of com¬
mon stock.
Price —At par (10 cents per share). Pro¬
ceeds—For mining expenses. Office—417 Paulsen Build¬
ing, Spokane 1, Wash. Underwriter—None.

(3/24)

July 1 filed $20,000,000 (amended later to $15,000,000) of
first mortgage bonds due 1989. Proceeds—Together with
other funds, to be used to repay
$15,500,000 in bank
loans and to carry on the company's construction proCram through 1959. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Lehman Bros.; Merrill
Lynch, Pierce, Fenner
& Smith, and Stone & Webster Securities
Corp. (jointly);
White, Weld & Co.; Eastman Dillon, Union Securities &
Co.; Kidder Peabody & Co., Smith, Barney & Co. and
Blyth & Co., Inc. (jointly). Bids—Expected to be re¬
ceived up to noon (EST) on March 24 at Room
2033,
Two Hector St., New York, N. Y.
Montana

investment.

Lehman Brothers, Eastman Dillon, Union Securities A
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmann
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith
and Dean Witter & Co. (jointly). Bids — Tentatively
had been expected to be received up to 11 a.m. (EDT)
on Aug. 27 but
company on Aug. 22 decided to defer'
sale pending improvement in market conditions.
SEC
on Feb.
25, 1959 extended to June 16, 1959 period within
which company may consummate financing.

—

Underwriter—None.

Power

To Merritt

Proceeds—For

market.

& Co. Inc.; Kidder, Peabody & Co.; White Weld & Co.J
Equitable Securities Corp., and Shields & Co. (jointly);

Feb. 26

Bow

Co.

—

Price—At

writer—Investors Investments Corp., Pasadena, Calif.

bonds due 1987. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart

Shipbuilding Corp.
March 3 filed 621,353 shares of common stock. Price—
To be supplied by amendment. To be offered from time
to time either on the New York Stock Exchange at price
prevailing, at time of sale or by public or private sale
prices. Proceeds

Peckman Plan Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1).

gage

New York

at related

...

Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1989.
Proceeds—To redeem a like amount of 5% first mort¬

Nedow Oil Tool Co.

Scott

Mutual Fund Manage¬

other funds to repay bank loan. Office—2531 University
Ave., St. Paul, Minn. Underwriter — Stone & Webster
Securities Corp., New York.

stock

par

Underwriter—Paramount

^ Patterson Dental Supply Co. of Delaware (3/31)

Calif.

mining expenses.

Thursday, March 12, 1959

March 9 filed 200,000 shares of common stock. Price—To
be supplied by amendment. Proceeds — Together with

^ Nease Chemical Co., Inc., Lock Haven, Pa.
Feb.

...

ment. Co.

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,

sold

the

company and 80,000 shares by. a selling
Price — $1.50 per share.. Proceeds
For
expansion and working capital. Office—1108
16th Street, N.W., Washington 6, D. C. Underwriter—
John C. Kahn Co., Washington, D. C.

stockholder.
*

and/or to service part of the company's debt. Office—
551 Rio Grande
Ave., Littleton, Colo. Underwriter—
None.

Oppenheimer Fund, Inc.
5 filed 100,000 shares of capital stock.
Price—At
market (about $10 per share). Proceeds—For invest¬
ment. Office—25 Broad St., New York. Underwriter—
Oppenheimer & Co., New York.
Dec.

★ Outlaw Hotel Corp.
notification) 268,000 shares of common
par
($1 per share).
Proceeds—For
construction of a motel unit and for
operating costs.
Office—Suite 204, 150 N. Center Street, Reno, Nev. Un¬

Feb. 24 (letter of
stock.
Price—At

derwriter—None.

general

Raindor Gold

Mines, Ltd.

Jan. 28 (letter of notification) 290,000 shares of common
stock (par $1). Price—$1 per share. Proceeds—To prove
up ore and for road and camp construction. Office—At
Suite 322, 200 Bay St., Toronto, Ont., Canada, and c/o T.

Arnold,

Wilson Circle, Rumson,
Co., New York, N. Y.

Sano &

Rassco

Underwriter—

Financial

Corp.
$1,000,000 of 15-year 6% series A sinking
fund debentures due 1973, to be offered in denomination!
of $500 and $1,000. Price—At par. Proceeds—For work¬
ing capital and general corporate purposes. Underwrite!
—Rassco Israel Corp., New York, on a "best effort!*

June 26 filed

basis.
_

.<;v

Research

Investing Fund of America, Inc.
Feb. 24 filed 200,000 shares of capital stock. Price—At
market.
N. J.

Proceeds—For investment

Office—Englewood,
America,

Underwriter—First Mutual Securities of

Inc.

★ Pacific Hawaiian Products Co.
March 9 filed 213,000 shares of
To

supplied

common

amendment.

•

stock.

Proceeds—To

Price—

selling

stockholders. Underwriters—Dempsey-Tegeler &
Co., St.
Louis, Mo.; and Morgan & Co., Los Angeles, Calif.
Pacific Power & Light Co.

Specialties Co. (3/13)
(letter of notification) 50,000 shares of common
stock (par $1). Price—$6 per share. Proceeds—To repay
short-term indebtedness and for general corporate pur¬
Research

Feb.

poses.

Office—Richmond, Calif. Underwriter—Myron A.

Lomasney & Co., New York.

Jan. 27 filed 207,852 shares of common stock

(par $6.50)
being offered to common stockholders of record March 3,
1959 at the rate of one new share for each 20 shares
held;
rights to expire on March 25. Price — $37.50 per share.
Proceeds
For construction program. Underwriter —
Ladenburg, Thalmann & Co., New York.
—

Paramount Mutual Fund, Inc.
Jan. 2 filed 300,000 shares of capital stock. Price—Mini¬
mum purchase of shares is
$2,500. Proceeds—For invest¬
ment. Office—404 North
Roxbury Drive, Beverly

Hills,

Richwell

Petroleum

Ltd., Alberta, Canada

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 of
the company and 824,000 shares for the account of cer¬
tain

selling stockholders. The company proposes to offflt
the 1,174,716 shares for subscription by its shareholder!
one new share for each three shares held

at the rate of

(with an oversubscription privilege). The subscription
period will be for 30 days following issuance of sub¬
scription rights. Price—To be supplied by amendment

Number 5828

189

Volume

The Commercial and Financial Chronicle

$6 per share). Proceeds—To selling stockholders. Office
—33 Great Neck Rd., Great Neck, N. Y. Underwriter—

demand note, to pay other indebt*
edness, and the balance if any will be added to workinj
capital. Underwriter — P a c i f i c Securities Ltd., Van¬
couver, Canada.
V *

Proceeds—To pay off

★ Rittenhouse Fund
Feb. 25 filed (by amendment)

None.
★

(4/1)

shares of 6% cumulative constock (par $50). Price—To be sup¬
plied by amendment Proceeds—To be added to the
general funds of the company and initially used to re¬
duce temporary notes payable to banks. Underwriter—
Stroud & Co., Inc., Philadelphia, Pa.
March

filed

30,000

★Ritter Finance Co.
March

filed

Dec.

(4/1)

(3/18)
300,000 shares of

stock.

(letter of notification)
com¬
Price—At par ($1 per share). Proceeds—
To promote and expand the development of the Safety
School

Shelter business.

6130 Preston
—Sano

Office—c/o

Brown

Kendrick,

Haven Drive, Dallas, Texas.

Co.,

New

York,

Underwriter;
Statement effective

March 9.

State Life,

Health & Accident Insurance Co.
(letter of notification) 50,000 shares of common
(par $1). Price—$5 per share. Proceeds—To be
Invested in stocks and bonds and to acquire other life
Insurance companies. Address—P. O. Box 678, Gulfport k
Miss. Underwriter—Gates, Carter & Co., Gulfport, Mist >

Price—To be supplied by amendment. Pro¬
stockholders. Underwriter—Stroud &
Co., Inc., Philadelphia, Pa. (par $1).

July 9

ceeds—To selling

mon

shares of class B common stock

25,000

Standard Sign & Signal Co.

vertible. preferred

stock

Routh BobbinsInvestment Corp.

shares of common stock. Price—$1
share. - Proceeds — For investments and working
capital. Business — Real estate investments. Office —'
Alexandria, Va. Underwriter—None. ;
— ' /

Jan. 29 filed 475,000
per

Strategic Minerals Corp. of America, Dallas, Tax
$2,000,000 of first lien mortgage 6% bondi
and 975,000 shares of common stock (par 10 cents). Prle«
• St Paul Ammonia Products, Inc.
—For bonds, 95% of principal amount; and for stock $1
iDee. 29 filed 250,000 shares.o£ common stock (par 2%
cents), to be offered for subSMption by common stock- - per share. Proceeds—To erect and operate one or more
chemical processing plants using the Bruce - Williami
holders at the rate of one hew, snare for each four shares
Process to beneficiate manganese ores.
Underwriterheld. Price—$2.50 per share. Proceeds—For additional s
Southwest Shares, Inc., Austin, Texas,
working capital. Office—South St. Paul, Minn. Under¬
a Texas Eastern Transmission
writer—None. Statement effective Feb.
Corp. (3/19)
Feb. 26 filed 150,000 shares of preferred stock (par $100).
★Schoolman Mand Carpet Mills, Inc.
Price—To be supplied by amendment. Proceeds—For
Feb. 17 j(letter of notification) 300,000 shares of com¬
construction program. Underwriter—Dillon, Read & Co.
mon stock. Price — At par ($1 per share).
Proceeds—
.

March 31 filed

Inc., New York.

operate California Weavers, Inc., School¬
man Mand Carpet Mills and California Latex Corp.
Of¬
fice— 1226 E. Slauson Ave., Los Angeles, Calif. Under¬

Feb.

writer—None.

and

To acquire and

Texas

(3/30)
March 3 filed $8,000,000 of sinking fund debentures due
April 1, 1984 and common stock warrants to purchase
80,000 shares of common stock to be offered in units of
$200 of debentures and warrants for the pruchase of two
shares of stock for subscription by common stockholders

Proceeds—To

repay

trols

tenths of

Selected Risks Insurance Co.
(letter of notification) 8,500 shares of commoD
capital stock (par $10) being offered to stockholders of
record Feb. 16, 1959 on the basis of one share for each
13 2/17th shares held (after giving effect to a stock dividend-of 11%%). The warrants expire on March 16,
1959. Price—$35 per share. Proceeds—For working cap¬
ital. Office—Branchville, N. J. Underwriter—None.
^

crease

★

Shares in American Industry, Inc.

/v;-Sheridaw*Baliiiont Hotel Co.

Price—At
1033-30tb

tion by common stockholders on a pro rata basis. Price—
At par. Proceeds—For working capital. Office — 3172
North Sheridan Rd., Chicago 14, 111. Underwriter—None.

Simplex Wire & Cable Co. (3/17)
19 filed 203,250 shares of capital stock (no par).
Price—To be supplied by amendment. Proceeds—To sell¬
•

Feb.

Sidney St., Cambridge, Mass.
Underwriter—Paine, Webber, Jackson & Curtis, Boston

ing stockholders. Office—79
and NeCv York.

Sire Plan of Elmsford,

Inc., New York
of 6% 10-year debentures and 5,6% participating preferred stock (par $50)
to be offered in units of a $50 debenture and one share

000 shares of

preferred stock. Price—$100 per unit. Proceeds—For
acquisition of motels. Underwriter—Sire Plan Portfolios,
Inc., New York.
of

★ Southwestern Electric Service Co.
3

(letter

shares of common

notification) an estimated 14,052
stock (par $1) to be offered for sub¬

scription by stockholders of record March 16, 1959 on
the basis of one new share for each 30 shares now held.

(estimated). Proceeds—For con¬
struction purposes.
Office —1012 Mercantile National
Bank Building, Dallas, Texas, Underwriter—None.
Price—$16 per share

Sports

Arenas

(Delaware)

Inc.

$2,000,000 of 6%. 10-year convertible de¬
bentures (subordinated), due Jan. 1, 1969
Price—To be

NoV.

18 filed

supplied by amendment. Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000

by increasing
the number of alley beds by eight at Yorktown Heights
and by six at Wilton Manor Lanes, Fort Lauderdale;
$300,000 for deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. Underwriter-

expand

two

present

establishments

None.

Sports Arenas

(Delaware)

Inc.

shares of common stock (par one
Price—At the market (but in no event less than

Nov. 18 filed 461,950

cent).

Price—Around $7.50 per share.

Pro¬

for exploration and drilling to in¬
supply. Office—593 Market St., San
Underwriter — J. Barth & Co., San
'

Park Ltd.

(3/20)

—None.

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., !•
President.

United States

Servateria

Corp.

Office—2522 South Soto St., Lcs
Underwriter—Van Alstyne, Noel & Co.,

selling stockholders.

Angeles, Calif.

New York and Los Angeles.

United Tourist

Enterprises, Inc.
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"
28 filed

for construction of

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¬

Portland,

Ore.,

Pres¬

April 11 (letter of notification) 900,000 shares of com¬
mon stock. Price—At par (10 cents per share). Proceede
—For mining expenses. Office—305 Main St., Park City,
(Jtah. Underwriter—Walter Sondrup & Co., Salt Lako
City, Utah.

Utah Oil Co. of New York, Inc.

May 6 (letter, of notification) 300,000 shares of capital
Price — At par ($1 per share). Proceeds — Fardevelopment of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.
:
>
'

stock.

★ Victoreen Instrument Co.
March 4 filed 248,394 shares of capital stock (par $1)
to be offered for subscription by holders of common
stock and debentures, at the rate of new share for
each four common shares held and eight shares for each
$100 of debentures held. Price — To be supplied by
amendment.
Proceeds—For
working -capital.
Under¬
writer.—None.

..v

Waste

King Corp. (3/23-27)
Feb. 20 filed 100,000 shares of series C 6% cumulative
convertible preferred stock (par $17.50).
Price—To be
supplied by amendment. Proceeds — To reimburse the
treasury for purchase of 182,000 shares of Cribben &
Sexton Co.; towards the development and tooling of new
product lines; and the balance to augment working cap¬
ital. Underwriter—Straus, Blosser & McDowell, Chicago, 111.
■/-//
:
★

Western Casualty & Surety Co.
Feb. 11 filed 100,000 shares of capital

stock (par $5)
being offered for subscription by holders of outstanding
stock at the rate of

one

share for each five shares

new

March

11, 1959; rights to expire on March 24.
Price—$45.50 per share. Proceeds—To increase capital
and surplus.
Underwriters — Kidder, Peabody, & Co.,
New York; and Prescott, Wright, Snider Co., Kansas
City, Mo.
: ■■
:
on

★ Western Wood Fiber Co.
March 5 filed 100,000

shares of common stock (par $10)
40,000 shares of preferred stock (par $25). Price —
par.
Proceeds—For construction and equipment of
company's plant and for working capital. Office—300
Montgomery St., San Francisco, Calif.
Underwriter—

and
At

None.
★

White

Stag Manufacturing Co.

(3/18)

Feb. 20 filed 127,500 shares of class A common stock, of
which 65,000 shares are to be offered for the account of

Price—To be supplied by amend¬
Proceeds—To be applied to payment of outstand¬

ing indebtedness of Marcus Breier Sons, Inc., assumed
by the company upon liquidation of that corporation; to
reimburse the company's treasury for cost of reacquiring
5,951 common shares outstanding prior to la recent re¬
capitalization of such shares into class A and class. B
stock; and the balance for general corporate purposes.
Office—67

West Burnside

St., Portland, Ore.

Under¬

writer—Francis I. duPont & Co., New York.

Wilmington Country Club, Wilmington, Del.
$500,000 of debentures due 1991 (non in¬
terest bearing) and 800 shares of common stock (par.
$25) to be offered to members of this club and ot
Concord Ltd. Price—$375 per common share and
$1,000
Oct. 27 filed

debenture.

per

Proceeds — To develop property
certain facilities. Underwriter—None.

build

and

★ Wisconsin Power & Light Co. (4/15) - ^
"
March 9 filed $14,000,000 of first mortgage bonds, series.
J, due March 1, 1989. Proceeds—To pay part of the cost,
of property additions and improvements. Underwriter—
To be
determined
by competitive bidding. Probable
bidders: Halsey, Stuart & ,Co. Inc.;
Smith, Barney & Co.
and Robert W. Baird &

Co. (jointly); Equitable Securi¬
and Eastman Dillon, Union Securities & Co.
(jointly); White, Weld & Co., Kidder, Peabody & Co.'
and Salomon Bros. & Hutzler (jointly); The First Boston
Corp. Bids—Expected to be received on April 15.
'

ties Corp.

Wyoming Corp.

writer—Mid-West Securities

1,449,307 shares of common stock. Of these
1,199,307 are subject to partially completed sub¬
scriptions at $2, $3.33 and $4 per share; and the addi-4
tional 250,000 shares are to be offered initially to share-?
holders of record Nov. 1, 1958, in the ratio of one new

Corp., Littleton, Colo.

per

be supplied by amendment.
Proceeds—For
general corporate purposes, including 1959 construction
Underwriters—Kidder, Peabody & Co., Paine,
Webber, Jackson & Curtis, and Stone & Webster Secu¬
rities Corp., all of New York.

Uranium Corp. of America, Portland, Ora.
April 30,1957 filed 1,250,000 shares of common stock(pai
16 cents).
Price—To be sunnlied by amendment (ex¬

pected to be $1 per share).

Proceeds—For exploration
Underwriter—To be named by amendment.

that date.

Price—$i

Insurance
ance

company;

writer—None.

★ Yale & Towne Manufacturing Co.
100,000 shares of capital stock, to be of¬

March 6 filed
fered to

certain of the company's officers and

ployees pursuant to
Stock Option Plan.

its

Officers

and

key em¬
Employees 1957

Prospective Offerings

Price—To

program.

share. Proceeds—$300,000 will be used for payments
contract to purchase shares

of International Fidelity
Co.; $325,000 for capitalization of a fire insur¬
$500,000 for capitalization of a title insur¬
ance company; $500,000 for additional capital contribu-.
tion to Great Plains Development Co.; and $300,000 as
an additional capital contribution to Great Plains Mort¬
gage Co.
Office—319 E. "A" St., Casper, Wyo. Under¬
on

★ Upper Peninsula Power Co. (3/24)
March 4 filed 40,000 shares of common stock (par $9).

purposes.

share for each 2.33 shares held

(3/23-27)

March 3 filed 275,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—To

and

& Chemical Corp.

—

■■/'

Nov. 17 filed

States Glass

708,750 outstanding shares of common stock.
Price—At market. Proceeds
To selling stockholders.
Office—Tiffin, Ohio. Underwriter—None,

Jan.

:■

ment.

★ Trylon Chemicals, Inc., Lock Haven, Pa.
24 (letter of notification) 709 shares of common
stock (no par) to be offered for subscription by the
stockholders of record Feb 10, 1959 on the basis of one 5
share for each 15 shares held,
?rice—$10 $er share.
Proceeds—For general corporate purposes. Underwriter

Griswold

selling stockholders.

Thorncliffe

United

Albert
.,

expenses

Feb.
*

steam

Nov. 26 filed

Nov. 10 filed $250,000

March

the

stock.

(Canadian) of sinking fund de¬
bentures, series A, due March 1, 3974, and 80,000 shares
of common stock, to be offered for sale in units, each
consisting of $1,000 of debentures and 20 shares of com¬
mon stock.
Price—To be supplied by amendment. Pro¬
ceeds—For repayment of a loan; to retire all of the com¬
pany's current bank loans; and the balance for working
capital and general corporate purposes. Address—Postal
Station R, Toronto, Ont., Canada. Underwriter—Bache &
Co., New York. ;
'

ton, Tex.

Aug. 19 (letter of notification) $250,000 of 6.% convertible
debentures due Sept 15,1963 to be offered for subscrip¬

Statement effective March 4.

Feb. 20 filed $4,000,000

Underwriter—Kay & Co., Inc., Hous¬

St., N. W., Washington 7, D. C. Investment Advisor—In¬
vestment
Fund
Management
Corp. Former
NameShares in America, Inc.

share, or, if the holder elects, for eightpreferred share and four-tenths of a common

Francisco, Calif.
Francisco, Calif.

Service Life Insurance Co.

—

common

ceeds—For

Sept. 26 (letter of notification) 3,567 shares of common
-•lock (par $1). Price—$18.75 per share. Proceeds—To
•go to a ,selling stockholder. Office—400 W. Vickery Blvd.,

Proceeds—For investment. Office

(3/23-27)
Feb.
27
(letter of notification)
about 40,000 shares
(par $1), not to exceed an aggregate value of $300,000

Jan. 23

market.

stock for each Metals & Con¬

★ Thermal Power Corp.

bank loans.

-Dec. 12 filed 50,000 shares of common stock.

common

share. Underwriter—None.

Underwriter—Allen & Co., New York.

Port Worth, Tex.

737,974

share of Texas

at the rate of one unit for each 25 shares of stock held.

'Price—$200 per unit.

Instruments, Inc., Dallas, Texas

691,851 shares of common stock (par $1)
shares of 4% cumulative preferred, stock,
series 1959 ($25 par—convertible on or prior to May 1,
1969), to be offered in exchange for common stock of
Metals & Controls Corp. on the basis of three-quarters of

•NScranton-Spring Brook Water Service Co.

•

held

filed

ident.

Utah Minerals Co.

9 filed 200,000 shares of common stock (par $2).
Price—$7.50 per share. Proceeds — To increase capital
and surplus. Office—221 West 57th St., New York, N. Y.
Underwriter—Ira Haupt & Co., New York.

Philadelphia, Pa.

★Ritter Finance Co.

Graham

Standard Security Life Insurance of
New York (3/13-16)

Feb.

60,000 participating units.
Proceeds—For investment. Office-

Price—At market.

(1229)

Alabama Power Co.

Dec.

(4/30)

10 ij; was announced that the

company plans the
$20,000,000 of 30-year first mortgage
bonds. Proceeds — For construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, "Stuart & Co. Inc.; Lehman Broth¬
ers; Eastman Dillon, Union Securities & Co., Equitable

issue

and

sale

■

•

Continued

•

page

■

(1230)

The Commercial and
Financial Chronicle

Continued

jrorn

ed in the latter part of March.
time in April.
'

page

Securities Corp. and Drexel &

Co. (jointly); Harriman
Ripley & Co., Inc. and Goldman, Sachs & Co. (jointly);
Morgan Stanley & Co.; Blytb & Co., Inc. and Kidder,
Peabody & Co. (jointly); The First Boston Corp. Regis¬
tration—Planned for April 3. Bids—Expected to be re¬
ceived on April 30.
•

Central

Power &

March 9 it
000 of first

determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Lehman Bro¬
thers and Glore Forgan & Co, (jointly); Kidder, Peabody
& Co.; Merrill Lynch, Piera
Fenner & Smith and Salo¬
mon Bros. & Hutzler
(jointly); Kuhn, Loeb & Co., A. C.
Allyn & Co., Inc., and Bear, Stearns & Co. (jointly);
Eastman Dillon, Union Securities & Co. Bids—Expected
to be received sometime in April.
Edison

Co.

New

York

Inc.

reported that the company plans to issue
$50,000,000 to $75,000,000 of first refunding mort¬
gage bonds. Proceeds—For additions, improvements, etc.
was

and sell

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan

Stanley & Co.; The First Boston Corp.
to be received
•

Bids—Expected

about June 23.

State Telephone Co.
(4-21)
announced that this company plans to
issue and sell $5,000,000 of 35-year debentures. Proceeds
27

was

—Principally to replace borrowings for
tion.

Underwriter—To

construc¬

new

determined

by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
The First Boston Corp.; Morgan Stanley &
Co.; White,
Weld & Co.; Eastman Dillon, Union Securities & Co.
Bids—Expected to be received on or about April 21.
ic Duke Power Co.
March 9 it
and sell

—To

reported that the company plans to issue
new preferred stock.
Underwriter

was

determined

bidders:

competitive

bidding.
Securities

Eastman

Probable

Dillon, Union
Co.; The
First Boston Corp.; Morgan Stanley &
Co.; Stone &
Webster Securities Corp.
Offering — Expected about
mid-year.
•

Paso

sale of

Electric

construction

program.

Underwriter—To

prich & Co. (jointly). Bids—Expected
up to 11 a.m. (EST) on May 19.
El

Paso

Electric

Co.

Proceeds—For
[Tor
be

Smith.

(EST)
•

Exoected

^—

received

May 19.

Paso

Feb. 9 it
en

Dri

ceived

a.m.

Co.
(5/12)
r
reported that the company is also planning
common stock to common
on
the basisof abfltrt fffN?"

each 15 shares held

May 11, 1959; rights to expire

on
May 26. Proceeds—For construction
Manager—Stone & Webster Securities

• El Paso Natural Gas
March 4 it
vote

was

increasing the

Corp., New York.

Co.

issue

...

authorized

preferred

April 28
stock

1,000,000 shares from 472,229 shares, and the common
to 25,300,000 shares from
20,300,000 shares. Pro¬
ceeds
For major expansion
program. Underwriter
White, Weld & Co., New York.
stock

TX7L14

TXT

1 #3

t»

17. Bids—Expected to be received

•

Pacific

Co.

Florida Power Corp.
Feb. 4, W. J.

Probable

bidders:

Halsey, Stuart

announced that the

poration is planning to sell additional shares of
stock

the basis of

cor¬

common

new share for each 12
shares
Proceeds—For construction expenditures.
Under¬
writers
Kidder, Peabody & Co. and Merrill
Lynch,
Pierce, Fenner & Smith Inc.
Offering—Expected in
June.
one

held.

—

Feb.

-20

announced

that

March 2

V
-

sidering the offering and sale

are

con¬

a
number of shares
(par $2.50); such offer¬
ing, ,if made will be made in conjunction with a
pro¬
posed offering by certain major
shareholders. Price-

of proposed new

common

market.

Underwriter

Antonio and
1

stock

Dallas, Tex.
Georgia Power Co.. (9/iO)

Dec. 10 it

—

Dittmar & Co.,

San

Securities & Co.

(jointly); Harriman Ripley & Co. Inc.
Registration—Planned for Aug. 14.
Bids—Expected to
be received

Sept. 10.>

Greater All American Markets
Feb. 16 it was announced that
the company is
planning
an offering of
$1,000,000 to $1,500,000 of common stock.
Proceeds
For expansion program. Underwriter
J.
Barth & Co.; San
—

—

Francisco, Calif. Registration—Expect¬

Co.

(jointly);-Equitable

Securities

Corp.;;-

Specto'r^Freighi.Sy»tem*ilnc;^/.,^vS^z
$l)/p£

and

w n

uaaa

for additional /working capital.'-

a a

<-*«

Underwriter—A.fG.

,#.Co., Inc., Chicago, .111. Offering—Expected, in
April;/'//z ■ >■ :.U- ■/./■,//

ic Texas & 'Pacific- Ry/
Bids will be received
^

...

(-3 Z26)
March 26 lor the purchase from

the company of about $3,000,000 of
tificates.f Probable "bidders':

equipment trust eerHalsey., Stuart-#/C'drTnc.;

Salomon Bros. & Hutzler.

;

•

'•

States
<

was

sometime

Hutzler.

Northern

Illinois

Dec.

was

Gas

Feb. 16 it

was

posed merger
Bank

National

Bankf Portland, Ore. .v
-eoanfirtion with the probetween this Bank and the .First National

Baker, Ore, that the Bank plans to issue

additional 23,000 shares- of common stock
of one new share for each 49 shares held.

share., Proceeds—To

Co.

reported that

1959 about $35,000,000 of

new

the

company

will sell

increase

securities, including

Feb.

some

Co.

program.

Inc.; The First Boston Corp.; Glore, Forgan & Co.:
Blyth & Co
Inc.
was

Luxemburg

reported that this company plans to offer
bonds. Underwriters—The First Boston

Corp. and Kuhn, Loeb & Co., both of New York.
Penn-Texas Corp.
Ian. 28, Alfons Landa, President, said the
company
offer its stockholders $7,000,000

Pennsylvania Electric Co.
Feb.
the

sale

derwriter

Probable

was

announced that the company is

planning

$15,000,000

—

of first mortgage bonds.
Un¬
To be determined by competitive
bidding.

bidders:

Halsey, Stuart & Co. Inc.; Equitable
Securities Corp.; Kidder, Peabody &
Co.; Eastman Dillon,Union Securities &
Co., Merrill Lnych, Pierce, Fenner
& Smith Inc. and
White, Weld & Co. (jointly); The First
Boston Corp. and Harriman
Ripley & Co. Inc.

(jointly).-

Offering—Expected about mid-year.'
Pittsburgh & Lake Erie RR.
Feb.

was

reported

bids up to noon (EST)

(4/7)
company plans to receive
April 7 for the purchase from

the

it of $2,475 000 of eauipment trust
certificates.

bidders:
Hutzler.

Halsey,

Stuart

Co.

Inc.;

Salomon

Probable
Bros.

additional

each 20 shares

then held.

Proceeds

Underwriter—To

—

For construction

determined

by competi¬

tive

bidding. Probable bidders: Merrill Lynch, Pierce,
Fenner & Smith, Inc.; Stone & Webster Securities
Corp.

Bids—Expected to be received on June
Washington Gas Light Co.
March

may^

per

be offered for

reported that the company plans to
$12,000,000 of first mortgage bonds. Under¬

was

issue and sell

additional capital stock/
through subscription rights. Purpose—To acquire Fair-'
banks, Morse & Co. common stock. Underwriter—Bear,
Stearns & Co., New York.

basis

that

announced

was

Electric Co.,

the

the company plans; to
710,000 shares of common stock; to
subscription by stockholders of record on.
about June 2, 1959, on the basis of one new share for

offer

Our River

Price—$50
capital and surplus.-

Virginia Electric & Power Co.- (6/2)

bonds; in addition, there is a possibility z
preferred stock issue.
Proceeds—For capital ex¬
penditures.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &

Feb. .16 this/company sought ICC/approval-for-issuance
°f 200,00fl/-shares.of class A common stock/(par

writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.;

Kidder, Peabody & Co.; Eastman Dillon, Union Securities &
Co.;
Equitable Securities Corp.
Offering—Expected during
the second quarter of 1959.
•

was

announced that the
company plans to issue
$18,000,000 of 30-year first mortgage bonds. Pro¬
ceeds—For construction
program.
Underwriter—To be
determined by competitive
bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea¬
body & Co. and Shields & Co.
(jointly); Lehman Broth¬
ers; The First Boston
Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman
Dillon, Union
and sell

/:./v'^/y
(formerly

which 60,000 shares.will .be sold for the account of sellnLt,
1A
.•'D
At dHPA
ing stockholders Proceeds Z— To pay -outstanding loans

•r

reported that the company plans to re¬
in April for the purchase from
it/
of $7,350,000 of
equipment trust certificates. Probable
bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. &
bids

$10,000,000

directors

Inc.; Salomon

Dec. 22 it
was

Co.

writer—To/ be determined by competitive bidding; Prob¬
able bidders: Halsey, Stuart-# Co.
Inc.; Merrill Lynch,/.
Pierce,/Fenner & Smith Inc. and Eastman Dillon, Union.

■

Frito Co.

.//'//':

Loeb & Co,; Blyth & Co. Inc.
—Expected to be received m April or May.

Ry.

first mortgage

Clapp, President,

••

will be received

—

165

Becker

Pipeline Co/ of America

mortgage bonds.
Underwriter—To

**';'*;:/\//// //''•*'VX;V"''.;/7 '--'r; " -'"////

Securities &

announced company plans to issue and
sell
first mortgage bonds later in 1959
to pay off

first

program.

(4 1) //./r •*
' ;v
tip to noon (EST) oh April 1 at
Broadway, New York, N. Y., for the purcchase from
the company of $7,620,000 of
equipment trust certificates.
Bids

i.1—^ V'-

30-year

i Lehman Brothers;- Kuhn,

was

Norfolk & Western

ceive
on

,.;

ic Southern

$25,000,000 of bank loans incurred in connection with
its
construction program.
Underwriters—Dillon, Read; &
Go-.Iatt, and Halsey, Stuart & Co. Inc., both ♦£ New
Vrkl-lr
*■■*+*'

program. Dealer-

announced stockholders will

Southwestern Gas & Electric Co.) plans the issuance and
sale of about $16,000,000 of. first
mortgage bonds. Under-/

June 25.

Feb. 25 it

taping 42l-7iii494 stares of

stockholders

T T

Natural Gas

Electric

was

(5/28)/-..-.

Southwestern Electric Power Co;//:,/ /;
fan. 26 it was. reported that this.'
company

determined

///"/nQ/vj

competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Corp. (jointly);
Smith; Kidder, Peabody
Co. and White, Weld & Co.
(jointly). Registration-

May 28.-

announced

Underwriter

Generating Co.

construction

Bros. & Hutzler.

Peabody & Co. and White, Weld & Co.
(jointly), Regis
tration^-Planned for May 29.;
Bids—Expected to be re¬

Co.; Kidder, Peabody & Co., and White,
Co. (jointly);
Merrill,Lynch, Pierce, Fenner &

Bids

by competitive bidding.-.Probable bidHalsey, Stuart & Co. Inc.; Eastman
Dillon, Union
Securities & Co. and Equitable
Securities Corp. (jointly); Merrill Lynch, Pierce, Fenner &
Smith;-Kidder

$25,000,000

determined

Planned for April
-

//:/ //>'■'

program;

Electric

day.

Securities & Co. and Equitable Securities
Merrill Lynch, Pierce, Fenner &

Lynch, Pierce, Fenner & Smith
Co,, both of New York. Regis¬

construction

Co.,

any

ders:

competitive bidding. Probable bidders;
Eastman Dillon, Union Securities &
Co.; Salomon Bros.
Weld &

that this 'company
plans' to
issue and sell fe
-11 $5,000,000 of nn —- m' 30-year first mortgage bonds

(5/19)

sell

Proceeds—For

Mississippi Power Co. (6/25)

Hutzler

Southern

(4/24)

Dec. 10 it was announced that the
company plans to issue

and

Securities

n. •

Proceeds—For

Inc., New York. Offering—Expected

announced that the
company

was

;

{

reported that the company plans the issuince and sale of 150,000 shares of common stock
(par $5).
Proceeds—For acquisitions.
Underwriter—Blyth &

A. G. Becker &

Morgan1

announced company plans to issue and. sell

was

Ryder System, Inc.

reported that the company plans to issue
and sell $20,000,000 of first
mortgage bonds. Proceeds—

June 2; :;

lan. 12 it was

was

tration—Planned for April l.-~

program.
Underwriter—May be Merrill
Lynch, Pierce, Fenner & Smith, Inc., New York/

Inc.; White,
Co.; Kidder, Peabody & Co.; Salomon Bros. &
Lynch, Pierce, Fenner & Smith Inc.
(jointly); Lehman Brothers and Blair & Co., Inc., (joint¬
ly). Offering—Expected during August.
Kansas City Power &
Light Co.

Dec.

Bids—Expected

$10,000,000 preferred stock this Spring.

Weld &

received

(jointly).

construction

Hutzler and Merrill

Underwriters—Merrill

Co.

April 28/

Puget Sound Power & Light Co.
Feb. 6 it

company is contem¬
of $8,000,000 of first mortgage bonds
Underwriters—To be determined by
competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co.

Inc. and

White, Weld 6c

Bids—Ten?-

plating the sale

was

(jointly); Lehman Brothers, Kidder, Peabody &

and

tatively expected to be received

announced that the

(4/28)

about

Loeb & Co. and Lehman Brothers
(jointly);
Stanley & Co. and Drexel & Co. (jointly).

equity financing through negotiated sale. If de¬
by competitive
bidding, probable bidders
may be Merrill Lynch, Pierce, Fenner & Smith
Inc.,
and Kidder, Peabody & Co.
(jointly); Lehman Brothers
and Blyth & Co., Inc.
(jointly); Smith, Barney & Co.
Offering—Expected in May.
Jersey Central Power & Light Co.

Equitable

sell

be received

last

(jointly);

Colorado

reported

was

(6/2)
that the company plans sale'of
$30,000,000 to $40,000,000 debentures. Underwriter—To
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn

termined

Inc.

Thursday, March 12, 1959

Public Service Electric & Gas Co.

reported that the company is
planning *
$4,000,000 preferred stock. Un¬
derwriter—Kidder, Peabody & Co., New York, handled

Dec. 29 it

Jan. 30 it was reported

it was

was

and

Co.

plans early
registration of 50,000 shares of additional common stock
(par $7). Proceeds—To reduce
outstanding bank loans.

reported that the company plans the sale
of 20,000 shares of preferred stock
(par $100). Pro¬
ceeds—For construction program.
Underwriter—To be

March 9 it

was

determined

Interstate Power Co.

March

it Maine Public Service Co.

by competitive bidding. Probable bidders;
Halsey, Stuart & Co.; Merrill Lynch, Pierce, Fenner &
Smith, Inc.; Stone & Webster Securities Corp.; Kidcter,
Peabody & Co.; White, Weld & Co. and Shields & Co.
(jointly) Equitable Securities Corp. and R. W. Press-

•

reported that the company plans to
$6,000,000 of first mortgage bonds. Under¬
by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.
and Salomon Bros. & Hutzler
(jointly); Merrill Lynch,
Pierce, Fenner & Smith Inc.; Kidder, Peabody & Co.
and Lehman Brothers (jointly).
Bids—Expected to be
received some time in May.
was

writer—To be determined

June.

determined

Feb. 9 it

issue and sell

Corp.; White,
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).
Offering—Expected in May or{

was

ceeds—For

March

that the company plans to
$20,000,000 to $30,000.0*00 of first
mortgage 30-year bonds. Underwriter—To be determined
by competitive bidding. Probable bidders:
Halsey, Stuart
& Co.
Inc.;- The First Boston Corp.; Blyth & Co., Inc.
and Smith Barney & Co.
(jointly); Harriman Ripley &
Co. Inc., Eastman
Dillon, Union Securities & Co., Mer¬
rill Lynch,
Pierce, Fenner & Smith Inc. and Dean Witter
issue

(CST) on March 12 for
from the company of $4,440,000 of equip¬
ment trust certificates maturing
semi-annually from Oct
1, 1959 to April 1, 1974, inclusive. Probable bidders: Hal-"
sey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Co.,

Co.
(5/19)
reported that the company is planning the
$3,500,000 of first mortgage bonds due 1989. Pro¬

Feb. 9 it

ic Public Service Co.
March

For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable
bidders: Halsey,
Stuart & Co. Inc.; The First Boston
Corp. and Blyth &

$25,000,000 of

some¬

///;':• / /;//

Bids will be received up to noon

Feb. 10 it

Diamond

Feb.

Offering—Expected

(3/12)

the issuance and sale of

(6/23)
March 9 it

RR.

Interstate Power Co.

mortgage bonds due 1989. Underwriter—To be

ic Consolidated

Central

the purchase

Light Co.

announced company plans to sell $11,000,-

was

ic Illinois

West Penn Power Co.

25)

Inarch 10 it

wras reported the company contemplates the
issue and sale of about $14,000,000 of first
mortgage
bonds, Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co.

Inc.;

Lehman Brothers and Eastman
Dillon, Union Securities
& Co.
(jointly); The First Boston

Corp. and Harriman
Ripley & Co. Inc. (jointly); Kidder, Peabody & Co. and
White, Weld & Co. (jointly;. Bids—Expected to be re¬
ceived

up to noon (EST) on May 25 at office of
Penn Electric Co., 50 Broad
St., New York, N. Y. *
•

Worth

Feb.

Fund,
it

was

Inc.
reported

West
'

that the Fund was planning
the sale of about
$5,000,000 of common rtock. Price—
Around $14 25 per share.
Underwriters—Blair & Co. Inc.
and G. H. Walker & Co., both of New
York. Offering—

Indefinitely postponed.

Volume

189

Number

5828

& Co.; Chemical Corn Ex¬
change Bank; C. J. Devine & Co.;

gan

Named Directors
CHICAGO, 111.—J. Patrick Lannan, noted in-

Continental Illinois National Bank

Trust

and

NSTA

Notes

The First National Bank

had. to

Traders Association of New York, an

bond

of the

behavior

investment

•

mond Kenney & Co.j'

/'witchrhunt''

initial

the

and

ment

sober

opened

thinking.

the

Gratuity Fund.

■

for

Security Traders Association which1
.

States.,.

shrouded. in

But

erst. Association of New York, largest of the 32 Affiliates of the

the^e

■

Bank of America-Bankers Trust

the

letdown,,
in the Treasury market qurtC ob¬
viously reflects the precautionary)
contrary,

"dropping down of bids by dealersand not any serious liquidation'by
•'
hniiW*-". Of
wf"?nosers
these

Bank
s

securities.

merged with

Bankers Trust.Co,

of Greyhound.

Group

Nuveen

Chief Executive Officer of the in¬

State'of'California bonds

ing will be is difficult* to imagine

11.

from

•short-term, debt

individual%,yvill
-c$Ls«:;£d££
tc

loans to California veterans under
a program in operation since 1921.

issues at

new

•Service: €(*,

going through with
ts offering of $25 million 30-year
first mortgage bonds, braved the
reaction in: the wake of the Treas-"

-•

ury-Federa* Reserve statement.
'"The
Of

received

company

lftftRt

from

:nrie. or ini

„**

du Pont,

WASHINGTON, D. C.—Julia M.

admitted to

Marcus Co. to Admit
Marcus & Company, 61 BroadNew York Citv

wav

™
*

v£ cl

members of
i

the! .bonds

basis,

interest rate with

•a

par.

needs.: The largest

VfeteranS' Bonds,.or.a dollar bid of centage,ot

.1957,

30-year

carrying a 5%
public offering

nation

Tne group diq

is.oo%,

Exchange.

dollar bid of 100.009.

cost

interest

the

NOTICES

DIVIDEND

Allegheny Ludlum Steel Corporation
Pittsburgh, Penna.
At

meeting

the

of Directors

Board

of Allegheny Ludlum Steel Corporation held
today,

February

27,

1959,

WAGNER BAK1NC
CORPORATIOI
y"'\

'-v

sharo

per

the

was

Common

31,

1959

to
of

owners

close of business on March

declared on
Stock of the

declared
share

payable March

Corporation,

Common sharerecord
at
the

13.

The net

State

was

managed

of America

have

purchased more
million of California

than

$716

State

and

the

^
.Directors

1959,

per

Stock

stock¬

March 20, 1959.

holders of record

•

J. V.

JR.

STEVENS, Secretary.
tm

Secretary.

fiJ—»MatkmriShwCorwdoat
A diversified' closed-end
Investment Company

Canada Dry Corporation

ii.

Dividend

)
w -~

On March 2,1959 a dividend of

DIVIDEND NOTICE

The following dividends

No^l3f

121 per share was declared on

have been

Municipal Bonds. The bank and
its underwriting syndicates,
through successful competitive fi-

declared by the Board of Directors:

the capital

Preferred Stock—A regular quarterly

from the absence of any

nancing, provide

the

Don, payable April 15, 1959 to
stockholders of record March 31*

tial new corporate

of funds for civic improvements
and public facilities required by

3.54%. ')

..profited-during the last few days-to

jnvest0rs

' )

The secondary bond., market has- —Bothbond issues

;

reoffered.

were

yield from

1.90%

substan- to 3
59%, according to maturities,
debt offerings. The veterans' Bonds are due Oct.
like Illinois Bell j 196o-84 and the State Construe'. Telephone's
offering were still tion pr0gram Bonds Dec. 1, 1960over the market but with no 1missues

Recent

U"S0!d

T'm!f^inn^e t0 tUm
•

dearth

The

8tM
debt

new

corporate

U^nr<mises to continue
issues piomises._io._continue

The net interest cost of 3.55%

0" the Veterans' Bonds compared
with 3.23% on the $100 million
1

an assured source

California's expanding
Other

major

economy,
members of the

™erfd Bank of America and
Bankers Trust Co. syndicates mcl"deHalsev.
Stuart
&
Co.
~

intnthe'^eek ahead" Not'"a^single Veterans' Bonds sold in July, 1958. - Halsey, Stuart & Co. Inc.;
Slh nndprtakfnl of aAv^cdhfeinterest cost-of 3.54% on the Guaranty Trust Co, of New York;

qience fs

thl cards.!

in
Several
"preferred stock deals are slated of
which the largest is Texas
.

Corp.'s

Transmission

Eastern

This

the

kind

of -interval

when
stock
f-

own.

State Construction Program Bonds

junior debt issues, carrying
privileges, come.-into their
With " the
equity
market

■

sold

mark

today

clearly

yesterday when two such offer¬
ings, namely KLM Royal Dutch
Airlines?
4%% debentures, and
White Stores Inc. 4%s debentures,
both convertible, mounted imme¬
diately

to sharp premiums.

Meantime,
;

4.40%
mated

Service

basis, had closely approxi-

investors'

ideas

and

moving well.

the

final

Trust

GrM.+Vl

was

$4.25 Cumulative Preferred
payable April 1, 1959 to

and

Savings

quarterly dividend

Common Stock-A

share on the Common
Stock, payable April 1, 1959 to
stockholders of record at the close
of business on March 13,1959.
Transfer books will not be closed.

manufacturer

air

cars,

dividend

per share on the
Corporation has been
declared payable on March 31, 1959 to stock¬
holders of record March 13, 1959.

A
-

cents

Common Stock of this

March 2. 1959

Bert J. Mitchell, Pres

company

2% stock dividend on
payable May 11,

REGULAR

clared

1959, to stockholders

declared this day
a

The Directors also

regular quarterly

regular quarterly dividend of 25
Common Stock,
layable April 10, 1959, to

The
SHARE

Payable

May 15,1959

to holders of record at close

IU of business April 1,1959
p§
Milton C. Baldridge
H
Secretary
II

March 5,1959

Directors

DIVIDENDS

also

declared

regular quarterly dividends of
$1.18% on the $4.75 Sinking
Fund Preferred Stock, $1.25 on
the $5.00 Sinking Fund Preferred
Stock, $1.25 on the $5.00 Convertible Preferred Stock, Series A
and B, all payable April 10,19591,
to stockholders of record March
19,1959.

THE COLUMBIA
GAS SYSTEM,

stock*

Ilolders of record March 19,1959.
PREFERRED STOCK

(Frigikinc

25<

Payment

declared A

cents a share on

dividend of

Frigikab for

of record

April 9,1959.
96th Comecuflve Quarterly

The Board of Directors has

This is

Common Stock,

DIVIDEND

trucks, and Frigibus for school buses and trolley and gasoline city
buses) and producers of Air-Con auto air conditioning servicing

color X-ray equipment.

QUARTERLY

Bank;

equipment. Wholly-owned subsidiary Reliance Eng. & Mfg. Corp.
manufactures Remco hospital and laboratory equipment, and devel¬

conditioners

The Board of Directors of
Seaboard Finance Company de»
M

QUARTERLY DIVIDEND

automotive

COMMON STOCK DIVIDEND

J. W. Reilly, Vice Pres. & Secy.

Smith, Bamey & CO.

underdash and Frigikar trunk units for passenger

5ERB0RRD

Checks will be mailed.

FRIGIKAR CORPORATION
Pioneer

of $0.25 per

COMMON STOCK DIVIDEND NO. 99

CONSECUTIVE

JOSEPH 8. 8TOUT

Vloo President and Secretary

of business on March 13, 1959.

,.m

17TH

stock of the Corpora-

1969.

Stock,

ap-

Indiana

offering,

ris

DIVIDEND NOTICE

opment

however,

peared that the Northern
Public

demonstrated

-.-

share on

stockholders of record at the close

from a $500 million, authorization
"Lehman Brothers; Kuhn, Loeb
voted in 1956. Proceeds will be & Co.; Drexel & Co.; Glore, For-

privileges attaching to such debt
offerings lend a bit of glamor.
was

^irst Boston Coip.,

c''

The $o0 million Veterans'Bonds
<piiU lilUUUil- v CLCi cHlS
crslrJ
+rvrl*a-t7'
marlr
tVIP
-Final
Sale

dividend of $1.0625 per

J. P. Morgan & Co. Inc.; Blyth &

^truction Bonds sold in December Harriman Ripley & Co. Inc.; Har-

pushing steadily into hitherto uii-;!
!: explored territorv, the conversion'

This

rvllf

million'-1 5

$15

lSSlie
.

has

$1.73

Preferred

April

payable

leges

Bank

dividend

1959.

McCASKEY,
,

Board

The

dividend of fifty cents (50c)

perfrom

the aiproceeds

5%, 3%%. 3Y4% and 3V2%- writing ) accounts

state Construction Program Bonds,
Qr

on April L will be
partnership in Ferris

& Company, Washington Building,
members of the New York Stock

and special schools,
company -;a premium of $4,691. for a combi- IK In the past 12) months under-

raised -$20 .million

The Bank of America have been granted under the pro¬
syndicate includes American Trust gram. Of the total, almost 45,000
Co., San Francisco, and Security-ihave been paid off in full.
First National Bank and Calif or- *. The $50 million State Construc¬
nia Bank, Los Angeles. The Bank- {tion Bonds sold today are the
ers .Trust group includes) Chase J second issue from a $200 million
Manhattan Bank, First National ^authorization - approved in the
City Bank of New York, and the selections of November 1956. ProFirst National Bank of Chicago. , ceeds will finance in part a fiveThe underwriting group bid a.; year, $500 million Construction
Premium of $23,451 for a combi-) program to.iheet the State's insti-

uie ataie oi

Homsey Partner

Montgomery

100 047' ^d-q-netjnterest cost Jo. today's

tHiae the,-- •
August,

r'T-Jrfhe
borrowed,
'

indicated

March

offering

public

for

svndi-

snecified

which

rite

intere^rate an^a

■

top bid

banking

•

Co., Inc.

million

manager.

Northern i lndiana. Public

The

$50

institutions-:^The merged syndicate is man-.^'and $138 million to Korean War
higher aged by -Bank of America, with'?;■veterans. A total of 135,000 home
^the>;Bqhl^ts Trust Co. acting as joint loans and almost 2,000 farm loans

discount:

sold

State

mean-

.thrpugh higher goppons or .the sale
of

The

of H. M.

banking firm

Byllesby &

program has been self-supNew York Stock Exchange,
porting since its inception.
j
on March 19 will admit Walter N.
Up to Jan. 1, 1959 the State has Frank, Jr. to limited partnership,
at this time. But, it is a
certainty..Veterans' Bonds and $50 million loaned approximately $100 million
4hat attempt to shift any substanj sfa.te Construction Program Bonds to World War I veterans; $900
DIVIDEND NOTICES
tial
portion of -the
prevailing- at^competitive bidding.y
^ rysmillion to World War II veterans,

tinning study of Treasury Tinanc-

Mr. Lannan
Board and

the

Co.

Newark, N. J. %

What the outcome of thevpon-?.syndicate to purchase $100 million';?The

;

America N. T. & used to finance home and farm

underwriting syndica te

Lannan

Chairman

F. W. Ackerman, P r e S i-

J. Patrick

Trust

Marketing $100 Million California Bonds

been

announced

BOSTON, Mass.—On March 19
Inc.; Wil¬ William H. Legate will be ad¬
liam R. Staats & Co.; American
mitted to limited partnership in
Securities
Corp.; Bache & Co.; du Pont, Homsey & Company, 31
Bacon, Whipple & Co.; A.
G. Milk Street, members of the New
Becker & Co. Inc.; Alex. Brown &
York and Boston Stock Exchanges.
Sons; Clark, Dodge & Co.; Dick
& Merle-Smith; Dominick & DomFerris & Co, to Admit ;
inick; Fidelity Union
Co.,
John

.The 23rd Annual Reception and Dinner of the Security Trad-

it has

Thalmann & Co.

Raymond Kenney

^ .Ndtidrial Security Traders Association, will be held at the Waldorf
Astoria In. New York, on Friday evening, May 1, 1959.
tainly has not been any tendency*
!
———:■■ V.—-————
—4o'panic.
" '')%%'■ :-V
future

indecision.

Grey¬
hound Corp.,

vestment

Trust

directors
The

Co.; Lazard Freres
& Co.; Shields & Co.; Reynolds &
Co.; Crocker-Anglo National
Bank; J. Barth & Co.; Ladenburg,

consists of 32 affiliates throughout the United

;;

True, the Treasury list and giltedge), corporate obligations have
cancelled out a good; parjt "of their
recent improvement and the im- '
mediate

to the board of

cantile

Publicity Committee of the

National

bit of

ton, D. C. at¬
torney, have
been: elected

dent

Hutzler. r
R.

Washing^

and

Pressprich & Co.; Paine,
Webber, Jackson & Curtis; Mer¬

former director of STANY,

is Chairman of the

of the

way

trustee of

of this developr

sting out

Mr. Kenney, a

contemplated,

taken much

to have

seems

New York,

dealers that nothing in the way of
a

nentTulsa

Bos¬

Philadelphia National Bank;
Seattle-First National
Bank;
Equitable Securities Corp.; Stone
& Webster Securities Corp.; Dean
Witter & Co.; Phelps, Fenn & Co.;
White, Weld & Co.; Salomon Bros.

of. the. National ' Security' Traders Association,

Government

Reassurance

Stuart, promi-

have'named D. Raymond Kenney of D. Ray¬

mar¬

kets'generally.

Harold

ton; The First National Bank of
Oregon.

affiliate

and

banker,

The

it could
developed at a much better time [
than right now, £ judging by the
come;

vestment

...

Goldman, Sachs & Co.; Kidder,
Peabody & Co.; Eastman Dillon,
Union
Securities
&
Co.; Bear,
Stearns
&
Co.; Merrill Lynch,
Pierce,
Fenner
&
Smith
Inc.;
Blair & Co. Inc.; Weeden &
Co.;

of the Security

of, directors

The board

■.

;
market)
not have *

Government

the

of Chicago; The
Co.; R. H. Moulton

Co.

announcement >. relative

Treasury

Co.

Northern Trust

SECURITY TRADERS ASSOCIATION OF NEW YORK

As long as the Federal Reserved-

(1231)

Commercial and Financial Chronicle
The

INC.

EDWARD L.

January 22,1959

JOHNSON
Secretary

The Commercial and Financial Chronicle

(1232)

Thursday, March 12, 1959

BUSINESS BUZZ
on...
Behind-the'Scene Interpretation*
(rem the Nation'*

Western

WASHINGTON, D. C. —Not
the oldest political observers in

there been

-Washington has
,

Horatio

Mennen

But

far as the Dem¬
ocrats
are
concerned, is ex¬
tremely unclear.
,
On the Republican
who

had

lias

side, Vice-

Stevenson

is the front
it is no

apparently

States,

certainty that he has the nomination nailed down.
Nelson

not be

candidate for the Re¬

Presidential

publican

Illinois

wants

son

nomina¬

tion, but it seems inevitable he
is going to the Republican con¬

Digest

strength.
The

full

woods

cratic
and

to be

going

are

Republicans '

the

probably

handful. A favorite
candidate usually receives

will have

Bulletin

sor.

the first

one

choice.

Washington political circles that

votes

if not of both parties, will have

^The

on
or

either for

—

Vice

President.

the

setter of the
Senator
Kennedy,
wealthy

the

son

Dip

Ambassador

the

Senator's

states

nominee

the

owes

political

Reuther,
>

former
of

Williams

chomping at the hit for

colleagues say

course, ;

every

breakfast."

morning before
>F;i■

Johnson Running "Hard"
'

Senate

don

running like mad.
cated

Texas

He has

traditional

the

role

is
va¬

Texas Senators of bygone years,
who

always

attended

gional Southern
He

ators.
Senator

and

Ralph-

caucus

his

the

re¬

of Sen- j

colleague'

Yarbrough F of

Texas, now, attend the Western
regional

caucus.

Because of the

4>ig Democratic victories in the
West

last

November, there are

how

Democratic

from

that part

senators

of the country.

It is apparently impossible, to

nominate

Southerner

Presidency. " Whether

for the

Senator

Johnson- had this in mjnd when
be

decided

switch

the

Catholic,

California gover¬

Knowland

last

would be

Others

feeling in Washington is—right
wrong and Washington often

the

across

Rockies.

would

fornia.

held

over

are

still

their convention

strongly

appears

un¬

Senator Humphrey,

nate

tive

Francisco.
Party
meeting in Wash¬
month to make a

final determination

this

substantial

dele¬

states, while Mr. Nixon would
triumph overwhelmingly in the
Western

love"

was

host for both Demo¬

crats

and

Republicans

Some Democratic bigwigs

Harry S. Truman and
Thomas E. Dewey were chosen
their party nominees. In addi¬

New

na¬

gets

the
the

nomination

i'fr

because

New

York

over

Mr.

they

Nixon

Philadelphia, Chicago,
York, Miami Beach and

be¬

the

most

cians

talk

and

articulate

all the

—

talk.

The

hard-hit¬

ting campaigner.

Revised

Speak

Case Before

Edition

—

Louis

12-page

—

primer

the "Chronicle's"

own

views.

—

Washington1 9., Dr; C., % ~25£

Francis I. Du Pont Will
Admit M. A.
On April

Speicher

1 Francis I. du Pont

Co., 1 Wall Street, New York

(quantity

copy

prices

Soviet
late

last

book

Premier
year

was

United

States

Neil H.

re¬

can

Monetary Policy-

Jacoby, Editor—Ameri¬

Assembly,

Columbia

Uni-

: versity. New York 27, N. Y.—$2.

City, members of the New York
Stock Exchange,
ton A.

will admit Mil¬

Speicher to partnership.

TRADING MARKETS

Kremlin

Botany Mills
;
Heywood-Wakefield
Indian Head Mills

W. L. Maxson
Morgan Engineering
.

National Co.

Khrush¬

Southeastern Pub. Serv.
United States Envelope

in Moscow.

recently

per

quest). !-FF'.FAw

result of the hours he spent

chev

public hearings at all .levels of
Government Li Cblortone Press;
2412-24
17th Street, N. W.,

the foremost talkers in the land
with

as a

the

jV color for citizen^ testifying at

pretation from the nation's Capital
and may or may not coincide with

one

■

Take

American Cement

can

bosses realize that he is

Ad¬

Silverberg—Bureau of National
Affairs,
Inc.,
1231
Twentyfourth Street, N. W., Washing¬
ton 7, D. C.

one

politi-

land.

Tax

National Labor Relations Board

That

of Wallace, South Dakota,
either President or Vice¬

for

the

Y.—$12.

How to

Governor

[This column is intended to re¬
flect the "behind the scene" inter¬

Combine

Madison Avenue, New York 22,

be wishful thinking. Vice-

President

vantages of Both Corporations
and Partnerships for Your Busi¬
ness—renndom Houseyinc.ydnf"

the

1948

when

50c per copy.

IIow

states.

the site.

Philadelphia seems to have a
good chance of being the host
city,
The city of "brotherly

tion

-President, they would have
of

San
are

nomi¬

Democrats

back to Cali¬

ington

middle-of-the-road group.
the

The 1956 pow-wow was

i -

Ac¬

Should

leaders

the
shy
be¬
the

Democratic

garner

gate strength from the Eastern

may

Republicans

likely they will

is wrong—that Mr. Rockefeller

would be harder to beat.

site, but it

•

lieve

convention

sunset

Senator

for

assist to Governor

and should it be
held in Los Angeles it would
aid Vice-President Nixon.
The
Rockefeller,

Rockefeller,

important state.
Some of
important Southern leaders
away from Mr. Symington
cause he has had support of

March, 1959—Contain¬
ing articles on Declaration of
Independence against Itself;
Moral Goal for Business; Ethics
Is
Personal;
Business
Taxes
Concern Everyone; Mutual Security; Inflation Spells Ruination; A Way to Finance Higher
Education, etc.—Foundation for
'E'commie
Education,
Inc.,
Irvington-on-Hudson, N. Y. —

party are saying privately
that they hope that Mr. Nixon

The

tion, which is anything but

Majority Leader Lyn¬
Johnson

Brown,

the

won

in the air

Symington and

Analysts,

Freeman*,

in New York

would be held

the

Democratic ticket.

the

European

—

Markets

Penton

strategists

Republican

the majority of the national
committeemen decided to hold

Americans

that since 1956 "I've been sing¬

ing Dixie

and the West

son

place

sum

The Democrats are going to
hold their big 1960 shindig in
Los Angeles. That was one rea¬

United

the

head

pub¬

lished in Kentucky calling Gov¬
ernor

Chandler

greatest

one

the

Kentuckians

all-'

time.

Kentucky has had some
famous native sons
including
Abraham

Chandler,
nor

Lincoln.

who

smokes,

' Governor

neither

but

loves

drinks
fried

■

How

working Industry—11th edition
—Editorial
Service, Steel,
Building, Cleveland 13,
Ohio.
•

of money, in an ef¬
fort'to attract the convention.
sizable

region of the country.

great measure of
success to Walter

Workers.

and

Facts and Figures of the Metal-

bidding for the

are

the
Democratic
party seems to be growing fast¬
er in the West than any other

union

labor

Angeles

Some

strength

questions

maior

Securities

maintain that if the Convention

it desires greater
recognition in Washington. The

Court

facetiously

beyond the Kentucky bor¬

is growing, and

the

Symington, ■ called
privately that he may wind up >
"Stu" by!,his close friends, lias
as a Vice-Presidential candidate. !
substantial strength in the MidEver since he rolled up many F West.
Like Mr. Stevenson, .he
delegate votes in the South in f could become the compromise
1956, Mr. Kennedy has been
eandidate of the Democrats. He
grateful. He told a group of
also represents a strategically
friends

few

•"

choice

the

Auto

Saint James, is a Catholic. Some
of the

November, could emerge in the
Presidential
picture
as
more
than a favorite son. The West

to be answered is: Who will be

his

pace

Democrats.

various

determine

will

Presidential

liams

Kennedy of
Massachusetts appears as of now
to

He also received

William

bosses. Michigan Governor Wil¬

York.
John

nominations.

the Democrats.

late Governor A1 Smith of New

Senator

candidate

son

norship hands down over form¬
er
Senate
Majority Leader

candidates must

the

from

»■;

Catholic' Prestcremiai '
of course, was' the

last

candidate,

who

probably

Securities

They Are Traded

TEMPERATE Zone!"

ders.

than
regional
strength to gain the nomination.
Therefore,
the
favorite
son

the next slate of the Democrats,-

European

Miss

Los

votes

Convention

700

reason

develop

There is strong speculation in

gious faith

was

Presidential

the

For this

letters,

our

convention. Each has offered a

favorite

before.

Jersey
nominated and

than

chicken, and loves to sing, has

votes will be needed to capture

blowing.

President

mean

zone

been

Governor

how the political winds are

member of the Catholic reli-

the

put

Inc., 11 West 42nd Street, New
York 36, N. Y., $45.00.

Brown

Kennedy in the Lead

Williams and Rcuther

preliminary holding action to

see

said

Stupely, I didn't

birth,

No.

$0.45:.;FF^;'FFvF ;FF,"|!;F
"When

elected to the White House.

used by delegates as

are

when

contender of their
Sometimes favorite son

tierious

con¬

New

Bar¬

1957-1958 —
1232—U. S. De¬

of Labor, Bureau of
Statistics, 341 Ninth
Avenue, New York 1, N. Y. —

Anjgeles next

Virginian

Governor

was

switch to the

fore the delegates

bal lots

Wilson,

two ballots, be¬

Los

Pension

Collective

Labor

at least in the role of fav¬
son.
President Woodrow

year

orite

Selected

Under

partment

Meyner will go to
Democratic National Con¬

the
vention

100

gaining, Winter

Governor

"favorite son" Demo¬
Presidential candidates,

Plans

potential delegate
strength in the Midwest today.
It could grow stronger.

delegate

some

Labor,
Bureau
of
Statistics, ? 341 • Ninth
Avenue, New. York 1, N. Y.—
$1.25,.

siderable

with

1958 —
Depart¬

Labor

The

down

Collec¬

Early

ment

chance,

one

Under

Bulletin No. 123d—U. S.

his

was

deep in his heart.
former state executive has

vention

tive

strong

Plans

Bargaining,

Insurance

choice
people,

Many

feller of New York, may or may
•

Digest of 100 Selected Health and

again in 1960.
including some
astute politicians in Washington,
believe that Governor Steven¬

party's

Rocke¬

ciates, ^ Dept. CF-2, 220 Fifth
Avenue, New'York 1,-'N. Y. —
On request.

party's candidate in 1952 and in
1956. He could very well be his

Nevertheless,

Governor

Special report—R. H. M. Asso¬

Former Governor Adlai E.

one.

in the history of the United

runner.

candidate, and

cratic

the office of President than any
man

Convertible Bond Opportunities—

is still another Demo¬

There

training for

sota; Governor Robert B. Meyner of New Jersey; Governor G.

Nixon,

Richard

President

Hubert
Minne¬

are
Senator
Humphrey of

hopefuls

(Soapy) Williams of
Michigan; Senator Stuart Sym¬
ington of Missouri; Governor A.
B. "Happy" Chandler of Ken¬
tucky) and Governor Edmund
G. (Pat) Brown of California.

The picture, as

(Colombo Plan is a plan for
Cooperative Economic Develop¬
ment of South and South-East
Asia)—Colombo Plan Bureau,
15 Alfred House Gardens, Colombo
.?

Some of the other Democratic

hopefuls as of now. They are
falling over each other on theSenate side of the Capitol.

Capitol Hill does not in¬
clude nearly all of them. There
are several in the state eapitols.

Colombo Plan—Facts and Figures

Other Democratic Hopefuls

Presidential

Democratic

many

is his own se¬

caucus,

cret.

the memory of some of

I within

And You

Capital

LERNER & CO.
^

Investment Securities

10 Post Office
'Telephone

Square, Boston 3, Mast.
*

iUbbard 2-1990

Teletyp*
BS 60