Full text of Commercial and Financial Chronicle : March 17, 1960, Vol. 191, No. 5934

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and FINANCIAL

ESTABLISHED

1839

Reg. U. S. Pat. Office

Volume

191

Number

5934

New York 7, N. Y.,.

AS WE SEE IT

Editor

Congress of the
United States has now issued its Report on the Presi¬
dent's Economic Report of last January. This document
has become an annual feature of the doings of
Congress.
They both are part of the implementation of the Employ¬
Act

of

Council of

1946.

The

Economic

President,

of

Advisers, and Congress has

By Dr. James J. O'Leary,* Director of Economic Research,

Committee
The

economists.

series

of

appear

the

to

which

has

Committee

in

its

also

employ

conducts

'"Fairly bullish" appraisal about the economy accompanies
forecast

staff of

a

hearings at which many men of many views
year. All this is, of course, an old, old story

informed.

The

Document

which

Joint

the

'

tial

U. S. Government,
Public

compared to

of several factors forestalling fur¬

as one

ceiling

explains why this should help lower inter¬

4.59%

in

dropped

not

difficult task—but

a

times.

The

Municipal

within

full

a

month.

a

there

,.£

virtual

was

this

is

not

seldom

one

been

of
so

year,

then

there

current

was

there

some

might

further

levels,
well

very

rise

on long-term U. S. Government
high of 4.42% on Jan. 8, but by

be

of

rising business

that

demands

a

for

-

against

year

to

restrictive.

be

We

are

de¬

and

FHA

mortgages,

opinions

a

James J. O'Leary

which

has

occurred

that at this time

dency

for
back

which

outlook.

Two

months

have gone

into

purely

markets

the

STATE

and

MUNICIPAL

AND

some

have

not

been

BONDS

Lester, Ryons
623 So. Hope Street,

.

&

Housing

Co.

Exchange

Offices

in

Corona

Claremont,

NEW

YORK

and

AND

Riverside, San Diego, Santa Ana,
Santa Monica, Whittier

Company

OF NEW YORK

.

15 BROAD STREET, NEW YORK 5, N.Y.

•

014-1400

Bond

TELETYPE NY M242

COBUNNHAM

Inquiries Invited

on

Dept.

Teletype: NY 1-708

j

Notes

.

.

1832

New

Bond

York Correspondent

—

Block

American Stock Exchange

V' .'5

25

'

V

^Otlt/uVCAt COMPANY




Department
THE

bank

Pershing & Co.

HAnover 2-6000

BROAD

STREET

NEW YORK 4, N. Y.

1

;

PERTH, AMBOY1

FOR CALIFORNIA'S

CIVIC

IMPROVEMENT

BONDS & STOCKS

Inquiries Invited

Commission Orders Executed On All
Canadian

'■■■V-.-'!
A'J DIRECT

Exchanges

MUNICIPAL

CANADIAN DEPARTMENT
Teletype NY 1-2270
WIRES TO MONTREAL AND TORONTO

Goodbody

&

Co.

MEMBERS NEW V0RK STOCK EXCHANGE
BRIDGEPORT'

BONDS

MUNICIPAL

securities

,

7

Ijf}'1

\

CANADIAN

canadian

Members

•

26)

Chase Manhattan

Southern

To Dealers, Banks and Brokers

New York Stock Exchange
';

DALLAS

page

Net Active Markets Maintained

Distributor

ESTABLISHED

7V'-v

are

f;

California Securities

AMERICAN STOCK EXCHANGES

T. L. Watson&Co.

>:;■ •%.;

on

Or,

markets

|

Agency

del Mar,

Dealer

FIRST

currency

repaid, and

the capital

Bonds and

,

.

Members Pacific Coast Exchange

THE FIRST NATIONAL CITY BANK

MEMBERS

'

as

are

(Continued

.

:

ease

Municipal

Los Angeles 17,

Associate Member American Stock

SECURITIES

CABLE:

*

know

State,

Members New York Stock Exchange

of

Burnham

New York 15

*

to

forces at work in

California

COMPANY

30 Broad Street

*

We

there

Encino, Glendale, Hollywood, Long Beach,

BOND DEPARTMENT

•>

the

is normally a ten¬

banks, loans

Oceanside, Pasadena, Pomona, Redlands,

N

at

field

in

accumulate investment funds.

now registered with the SEC and poten¬
"Securities in Registration" Section, starting on page 34.

DISTRIBUTORS

V

seasonal?

of year there

money

complete picture of issues

NEW YORK

\"

prices

institutions

REGISTRATION—Underwriters, dealers and investors in corporate
our

bid

average

tendency toward

sale of automobiles has likewise thus far failed to

IN

about

FHA

some softening of interest
early part of the year, particularly the
short-term rates, has caused many students of the
money
and capital markets to reappraise their
thinking. The basic questions are: Is the softening

now

business

Federal

the

unchanged
on

flows

the

case

yields

has remained
virtually
6%%.
This index is based

by and we have not witnessed the rapid
buildup of business activity which was expected
to develop after the steel strike settlement.
The

about

by

prepared

as

rates in the

unfortunately in the midst of
doubts

decline of about
moderate

The

so

loanable

supplies, and Federal
policy would continue

Reserve

a

More

private secondary market for new home mort¬
gages for immediate delivery, the mortgages being
limited to those with a 25-year amortization
period
and a down-payment of 10% or
more, with a 12year payoff period assumed.
/

a

funds would be bound to press
.

4.16%,

office

the

activity,

to

percent.

one

Reserve,

year went on.
The reasoning
underlying this conviction was

that 1960 is certain to be

of

about

and

as

19 it had

clines occurred in the corporate bond
market,
in the market for state and local bonds. In the
of residential mortgages, the index of
on

conviction that

moderate

which point it
point to 3.56%

gross

unanimity

that interest rates in 'I960
would: at least remain firm at
the

from

percentage

It has moved upward again since
at the end of February.

UNDERWRITERS

'

CHEMICAL BANK

•

business

then, and stood at 4.28%

crystal ball has

cloudy. At the end of last

INVESTMENT

Underwriter

and

consumer

mid-January,

over

one-quarter

these

undertakings in

HAnover 2-3700

TRUST

on

and Public

Securities

telephone:

whole

fallen

28)

NOW

a

a

as

afforded

as

Housing,

State and
-

are

pall

a

bonds reached

,

SECURITIES

cast

this is

plans, functions,! and
resources for the
purpose of creating and maintaining,
in a manner calculated to
foster and promote free com¬
petitive enterprise! and the! general welfare, conditions1 *
under which there will be afforded useful
employment
opportunities, including self-employment, for those able,
willing and seeking to work, and to promote maximum
employment, production, and purchasing power."
It requires considerable
patience to unravel these in¬

securities

to

confidence

Feb.

'.\and%ujbilize^ all its

page

sale

car

of

v

on

tended

The average rate

"The

(Continued

annual rate of

an

7-million

a

During the past two months we have, of course,
experienced some softening of interest rates. For
example, the rate on Treasury bills reached a high

,

volved sentences and to discover,

with

to the expectations of

up

Business corporations have not been liquidat¬
ing short-term Government securities, as expected,
to finance the buildup of inventories and
capital
equipment. The stock market has faltered and has

My objective is to discuss the money market and
the
mortgage
outlook.
There
are
times
when

,:r

coordinate

money

t

Congress hereby declares that it is the continuing
policy and responsibility of:the Federal Government to
use all
practicable means consistent with its needs and
obligations and other essential considerations of national
policy, with the assistance and cooperation of industry;
agriculture, labor, and state: and local governments, to
;

mortgage

est rate level.

part of the movement
which produced the Employment Act of 1946, a New

form reads

available

$510 billion for 1960

or

rate be lifted and

It will be recalled that all this is

Deal-Fair Deal law which in its present

readily

ther interest rate advance. He urges government bond

earlier report of the President—which merits
thoughtful attention of the citizens of this country.

follows:

Copy

a

inflationary fears

Eco-

distributes

with the

the

Cents

$497 billion in 1959. The economist credits public's lessened

$525 billion
1

hardly contains a great
deal of "enlightenment. Yet there is one aspect of this
report — particularly when considered in conjunction
now

more

10% GNP rise by third or fourth quarter at

each

nomic Committee

of

rates, however, staying at present levels. Dr. O'Leary sees a

extensive

an

50

year.

coun¬

tered with the establishment of the so-called Joint Eco¬

nomic

come

Life Insurance Association of America, IS etc York City

his

has

course,

Price

Money and Capital Market Outlook

The Joint Economic Committee of the

ment

Thursday, March 17, 1960

2 BROADWAY
NEW YORK

-1

-

1 NORTH LA SALLE ST.
-

-

CHICAGO

'

Dominion Securities
Grporatiom
.

40

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

BOND

DEPARTMENT

Bank

of

America

"*

N.

T.'A

San Francisco

8. A.

Los

*

■

Angelas

2

For Banks, Brokers,

\

•

,

'

•

-

A continuous forum in

able

blanket

and

service

our

(This is under

have

a

New York

trading

Louisiana Securities
Bought-—Sold—Quoted

;

The

tor.

City

stock

common

of

too

iatory

CHICAGO

1959.

mausxy •

the

laid

-fnr

foundation

•

for

is

reflected,

already
net

of

revenues

Unaudited

in
the

income

net

.

made

company

to

,

an

eighths of

the

a

of

offer

an

1959,

York 6, N. Y.

HAnover 2-0700

NY 1-1557

Mobile, Ala.
Direct wires to

JAPANESE

the

was

of

STOCKS

1959 range of 43.28.

a

tors

The direcrejected the offer
General has since

United

of

inadequate.

as

For current information

Call

Private

SAN FRANCISCO

•

$1.67, or 25.1%.
....
offer nor renew it.
Nineteen-sixty results should be
The market risk in these shares,
a minimum of $2.30
per share and1 as jn utility stocks
generally, is

dustry, .which

to Principal Cities

Wires

had

been

characterized

1:0x,

by a steady,
depressionhas

more

new

WEINBERG,

Merchandising
service

& CO.

INC.

Members

7. Security

Dealers Attn

BONDS
Bids

on

'

Odd Lots

(Active and Inactive Issues)
40

Exchange Place, New York 5

Phone:

WHitehall

3-7830

o
become

has

re-

^an; holders

? pa^.0

about

at

17

times

expected

'

'

with

family,

Seismograph Service Corporation

sev¬

writer

The

We are reprinting the ac¬
companying article in view of
the fact that several mechan¬
ical errors appeared in .the
version as published in the
issue of March 10.—Ed.

recommended

has

independent telephone com¬
panies in these columns since
September, 1953. Every recom¬
mendation resulted in a capital
gain.
Telephone Bond &i Share,
for example, was recommended in
that year and was quoted then at.
1'3%-14. It has since been merged
with General Telephone & Elec-

Trading Interest In

American Furniture
B as sett Furniture Industries

Life Insurance Co* of Va.

mi

*

t

l

a

•

-

•

1

ex-

I

»

J

A

value in the current
a gain of

be

many
consider
to

about

LYNCHBURG, VA.

years!

ing

The "independents" (companies
other
than Bell)
operate about

;

hasbeenso
overlooked by

LD 39

TWX LY 77

—5-2527—

Private

Wire

New

to

York City

400%

in

one

six

or

in

phones

six

seven

the

and

half

a

all

of

United

tele¬

States.

the

bull

the

Institutional Investors..

•

WANT INFORMATION ABOUT

number

of

communities

still

it

has

usually

over

Bell's

toll

fnmidn

and

.

a

P/umfrinc

foreign
countries.
subsidiary of Texas

holes, and the use of seismic
to

The

pick

waves

/J

niiK

m

n4v«i

o

i

sub-surface

1

am

structures

or

.

or

to

draw

up

this

are

no

17

serving

subscribers

with

compared

as

United Utilities is oerhaos ' next
y

offices throughout

our

firm has

a

first-hand

-

General, the largest indepen¬
dent, serving 460,000 stations at
June

familiarity with the entire
Canadian securities market. We
handle transactions in all Cana¬

dian securities,
corporate

including stocks,

and municipal bonds,

in

we

will

be

glad to supply

information about specific issues

30, 1959. Service is furnished

parts

of

15

-

states

including

California, Oregon, Washington,
Wyoming, - Nebraska,
Kansasj
Iowa, Missouri, Arkansas, Indiana,,
Ohio
Pennsylvania, New Jersey,
North Carolina, South Carolina.
Gas and electricity are also sold
in

and

fain
Harold Nelkin

1960

some

areas,

though this

repre-

sents only about 12% of revenues
for the system as a whole.

,

business.

involved

Hundreds

companies

minimum

Call

or

write:

only

about

This meant
poor

NESBITT, THOMSON
AND COMPAKr. INC.
25 BROAD ST. 140 FEDERAL ST.
NEW YORK 4

BOSTON 10




service

28%
an

Phila.-Balto.

Members:
&

Boston

Pitts.

obsolescent plant,
thus low rates

and

low

was

revitalized' about

and

an

revenues.

Management
that

time

^ itself. But,, m addition, Scismograph Service is moving to develop
the
electronic ' capability
that

it

has

1516 LOCUST ST., PHILA.

aggressive modernization*
was
initiated.
This is

ments.

As

tronics" is

we

and

2, PA.

LAMB0RN & CO., Inc.
99

WALL

STREET

NEW YORK 5, N. Y.

SUGAR
—

seismic

Refined

it

costs

them

of

staffs

more

Liquid

—

Exports—Imports—Futures

oil

the

DIgby 4-2727

be-

do

to

Seismograph' has
capitalize on.

able

The big jump in revenues

word that is today

a

been

Wo*

to

came

the;

almost a-guarantee of the market

in

glamour that leads to

^sQoli^atl?" ©fjoreign in that
operations for the first time

.

.

very

high

,.

price-earnings ratios.
Seismograph Service is

1958

year.

one

and

resulted

Management

from

believes

that

of the focal point of oil exploration

the largest companies engaged in

Continued

on

page

Revenue (mm)
Depreciation....^——

1957

1958

1959 Est.

1960 Est.

$10.39

Net income

-

Cash flow

$16.28

$17.2

$18.5

1.02

2.55

2.60

2.70

0.68

Cash flow

Cash

$9.93
0.94

0.80 +

,

as

flow

% of

rev.

increased to about 54.1%. At the

Price: cash flow
Price: earnings—

per

Earned per

0.57

0.60

1.70

3.12

3.24

16.4%

19.0%

18.5%

4.35

8.00

8.30

1.78

1.46

1.55

12

12

13

2.9

1.5

1.6

6.8

8.2

7.9

0.57
1

1.51

15.2%

,

1

3.90
1.45

,

15
'

3.9
'

10.3

Over-the-Counter

43

Quotation Services

TABLE I
1956

present dial operations

about

(Assoc.)

down, there has been a rather
rapid rate of attrition in the ranks
of the smaller operators, which

up in years of
precision instruall know, "elec-

share
share
Average price

are

Exchange

domestic oil exploration trending

built

manufacturing

beginning to bear fruit. By Sep¬
tember, 1959 dial operations had

program

Stock

Stock Exch.

,.

system was
dial-automatic.

and

cause

dividend-

factors.

or

ALBERT J.CAPLAN& CO.

producers themselves are capable
pf doing seismic work. However,
large oil companies tend to main-

Two years ago the
of interest to you.

companies,

the work themselves than it does
earnings, 1.8
times anticipated cash flow, and to
hire
Seismograph
Service.
70% of book value, is interesting With costs continually rising and

t'o

Canada,

finance

Raw

patents

mated

largest inde¬
about 3,500,000

of

stocks

common

paying small-loan companies, sales

that pin¬

maps

lines. General is the

Bell's 58,000,000.
With

or

sent back to central head¬

pendent,

CANADIAN SECURITIES?

seek for retail off-street placement blocks of inactive
preferred

automati-

Seismograph's instruproduce from 24 to
50
which-may be used in the

ments

Companies
We

ground

up

are

anomalies.

Smaller

esti-

times

for

surveys

cally plotted in time sequence with
instruments developed and manufactured by Seismograph Service,
These seismic plots are used to

in

attri-

by Bell.

connect,

_Qfafae
States

There

All the indepen-- ' A price less
dents and the Bell system inter¬ than eight

served

seismic

Aside from

history that

both

Consumer

point structures.

butes.

some

Bankers

N.Y.6 COrtlandt 1-5680

cur-

dent 011 operators in the United

used

market

in

are

Investment

&

HI Broadway,

quarters in Tulsa, Okla., where
automatic magnetic scanners are

greatest

4,800 indepen¬
dents.
These serve, without com¬
petition, twice the area and twice

There

at

™aS°r ?" companies and indepen-

field

business,

Tokyo, Japan
Brokers

Finance

•traced,

declin¬

a

Yamaichi Securities Co., Ltd.

appreciation,

conducting

vi

STRADER and COMPANY, Inc.

purchase

^

find

in

what

in

a

market of about 66% or

capital

waves.

•

change has

outstanding

York, Inc.

Affiliate of

rent levels for possible long term

equipment

1

buried

of New

or

prospects justify
opinion, that the common is

my
an

rights,

these

think

I

those

Stocks with stories are plentiful,
perhaps too plentiful. Stocks with'
old-fashioned numbers are scarce,
Seismograph Service Corporation,!
1^.

.

The stock received in

tronics.

Commonwealth Natural Gas

valuable

Instruments, it is the only one
that is publicly held.
Seismic
exploration ..involves
the drilling of shallow holes, the
setting off of dynamite "shots" in

eral extensions.

four

Securities Company

will undoubtedly share in

dividends,
"both.

nor

telephone

earn-

this.growth either through higher

plus factor in the attraction
Equipment in color, styled for« of the stock is the possibility of
beauty and convenience (and at a merger
on
consolidation
with
premium rate it should be added) General or some of the other inhas stimulated the use of the tele- dependents. This would be soundphone and boosted revenues. Telephone companies everywhere are
■
stressing the point that the tele"
phone is fun as well as being in^
i
dispensable.
The leisure market
HAROLD NELKIN
1
is
being
tapped
spectacularly. Director ins,uuiional Research Dept.,
Homes with teenagers know what
x,
r~
v^l.
ru\
Thn
-fomilv
Oppenheimer & Co., New York City ■
this means. The two car family
Members; New York Stock Exchange
has long since had to become the
two

write

Yamaichi

ings of the company could double
jn the next five years. The stock-

A

outstanding

moanc

Teletype No. NY 1-2762

m-

70%. Thef stock.is currently sell1960 earnings.

telephone

was

I believe that the

'minimal.

v. '

recently
to 35 cents quarterly,
n

a

mg

f

dividend

creased

dynamism as well.

GROSSMAN

N.

Iskander Hourwich

growth,
recently * developed

proof

S.

The

or

stated that it will not increase the

„

PHILADELPHIA

branch offlces-

our

acquire its
assets
exchange of fiveshare of General for

45-50 as compared
wjth the current price of 40 and
equivalent

versus

"

New Orleans, La. - Birmingham, Ala

the

to

each share of United. This

$3-,724,467 for the
preceding year, an
increase
of
32.1%. Per share earnings on the
average
number of chares outstandmg- increased to $2.09 from

in¬

closing months

through

™as

920,374

the

General

part, in
system,
for

re?aili 31
in

.-structures of its subsidiaries. This

the

^arser L°rnpdnies nave

access to the capital markets more
readilv and at lower cost

complete. United

is

iolVj

19 Rector St., New
■

Lareer comoanies have

industry

rather general revision of the rate

stodgy,

The

exchanges

based in the economics of the

jy

modernization

after

Members New York Stock Exchange

Members American Stock Exchange

C1:eases omy atl:er modernization

of

of the year in

Teletype NY 1-40

nniv

Steiner, Rouse & Co.
.,

grant rate in-

commissions

York

New

penheimer & Co.,
City. (Page 2)

matter of practice, regu-

a

rpa-pa

suddenly be¬
came the. stock

120 Broadway, New York 5

with

compares

64.6%

the. has .fK„c
v,QC?
thus

Telephone &
Telegraph Co.,1
for example,
long neglected
by the sophis¬
ticated analyst.
as

A

,

American

1920

Nelkin, Director of In¬
stitutional Research Dept., Op-

at Dec. 31, 1)945,
75.5% at Dec. 31, 1950 and 95.7%
currently.

mg more and more favorable at- ■
erninf* invectention from the discerning inves
eixuxig uivet,

Associate Member

•

Weill's

telephone industry is receivteiepnone industry is receiv

The
ine

This

end.

year

United-Utilities

American Stock Exchange

BOSTON

security referred to herein.)

any

70% and should reach 75% by the

Partner, Hourwich & Co.

Corporation

WOrth 4-2300

offer to buy,

an

ISKANDER HOURWICH

New York Hanseatic

f

Iskander

—

Partner, Hourwich
& Co., New York City. (Page 2)
Seismograph Service Corp. —
Hourwich,

'Harold

problem, don't limit yourself tu
regional service. Our large trad¬
ing department and extensive
facilities not only broaden your
potential markets—they also as¬
sure you
of accurate executions.

Established

Co.

Utilities

United
or

cover¬

-

Next time you
•

solicitation of

a

dealers
States.

offer to sell,

as an

Alabama &

Selections

Their

'

as

reaching banks, brokers and
throughout the United

age,

a different group of experts
field from all sections of the country

circumstances to be construed

no

Thursday, March 17, 1960

Week's

This

participate and give their reasons for favoring a particular security.

nationwide network of private wires,
affording traders fast and reli¬
of

advantage

,

Forum Participants and

which, each week*

in the investment and advisory

Call "HANSEATIC"

.

.

'

'

The Security I Like Best...

Dealers only

Cover the Entire Nation

Take

Chronicle

The Commercial and Financial

(1170)

'

3.50+
19.0%

for 47 Years

National Quotation Bureau
Incorporated

9.00+
2.00+

Established 1913

46 Front Street
CHICAGO

New York 4, N. Y.
SAN

FRANCISCO

Volume

191

Number

5934

.

.

The Commercial and Financial Chronicle

.

(1171)

3

Investment Paths—1960
By Martin E. Rooney, Professor of Finance, North Texas State

CONTENTS

College, Denton, Texas, and Registered Investment Adviser and
Member

Formar

of the Economists* National Committee

Happy

security analyst, now a Professor of Finance, examines the

'Page

Articles and News

ST. PATRICK'S DAY

inspects the assumptions and evidence offered by those

who believe we are in a "Golden Sixties"

COMPANY

AND

compelling arguments of five different investment routes open to an
investor, He

[iCHItnSTEIfl

B.S.

Monetary Policy

on

Let

decade, who advocate "Buy

us

turn

obsoletes

Money and Capital Market Outlook for the Remainder of

your

into

STUFF

GREEN

Foreign. Common Stocks," and who favor "Treasury Bills," and he
This

outlines,the case for "Diversified Portfolio" policy, and advises the

Year—James
'■

v

"Buy Gold" school on the preferableness of gold shares to gold stocks.
Investment

opinion is sharply di¬
There

vided at this time.

are sev-_

thought concerning
the wisest course of action to take.

view-

Major

'

-

.

'\

-

deal

by wide cleav¬

bor

will

cle I will take

it

want

at

look

the

self

that

foreign la-;
way;
That

Are-We

-

by

S.

Rate

All-this talkpricing itmarket is silly.

of

labor

the

—Irvin

-

baird-atomic, inc.
7

farrington
mfg. co.

___.

9

__

sonar radio

country since the

As for

common

corp.*

Situation in Western Europe

F.

Westheimef___

____

10

...

levitt & sons
Us About the

Sixties—John R. Bunting

14

war.

hermes

stocks, of course*

Survival

major

of the

—Hon.

Domestic

Cotton Textile

Industry

Henry Kearns.1:

electronics
15

_______

*

Is

Bear

a

Market

Inevitable?-—Clarence H.

Gillett__

Regular Features
As We

his personal views on- the[ the inflation is of a mild variety..
Buy something that will grow
position taken byAfhe''school" in
and expand with America.
question,
gives

G. N. P. for 1959

The Golden Sixties

they could not win. Never¬

theless, we must

.maintain a huge

and

exploration.

space

will

Factories

out

turn

new

one

of that size will

G. N. P.

A

erate

have

we

for

housing,

clothing,

automobiles

schools,

furniture,
and public

Lastly, this business of

profits is so
pessimists

on

improvements. Any threat to our
prosperity which might occur will
be met by massive doses of deficit
spending. Business will have its
ups and downs but there will be
no depression.
The business cycle
has been tamed.

Our Government knows how to

have

will

Of

inflation.

control

little,

a

course,

but

we

just

only

enough to stimulate business and

squeeze

make

so

much

problem that

about

dragon.

Debt

America

was

has

The

we

is another
is

thing.

good

a

built

paper

on

debt.

Washington Ahead of the News—Carlisle Bargeron____

to

BarChris Construction

see

33

Mutual

22

Bowling Corp. of America

a-,
Funds

it

was

years

pare

ago

When

debt to assets of

is

Take

"X"; today profits

the

meantime

risen at

less

4_1:

News About Banks and Bankers.
.•

Wilfred

Our

Reporter

on

May_u_

Utility

Teletype NY 1-1825 & 14844
31

;___

Securities.

one-half

that

Securities Now

in

Registration.

Prospective

Security

Offerings

41

__

the

The Market.

pessimists and it
The pessi¬

The

money..

mists

have

been

years,

and they are wrong

•

for

wrong

Salesman's

Corner__

and

.

.

You—By Wallace Streets

Security I Like Best

not

today!'

The State of Trade and Industry—

the

Toward

Sixties

School"

"Golden

Tax-Exempt

,

a

It

is my

(

r.

,

and

C

:

■

'.

.

.

You_

of : the
•

position
-v

taken

Continued

by

on

THE

ppge

25 BROAD

York

1868
Stock

<

Twice

Published

Weekly

ST., NEW YORK 4, N. Y.

TELETYPE NY 1-5

TELEPHONE HAnover 24300
Albany
Nashville




Boston

Newark

Chicago
Schenectady

Glens Falls
Worcester

•

Copyright 1960 by William B. Dana

|

Company

CHRONICLE

FINANCIAL

ary

Patent' Office

Reg. U. 8.

COMPANY, Publishers

DANA

New York 7,

2-9570

to

March

Thursday,

Every

Thursday

17,

Other

Chicago

Office:

3,

111.

135

Subscriptions

and ad¬

Salle

post

in

St.,

(Telephone STate 2-0613).

matter

Febru¬

office

at

New

Dominion i

Canada,

Other

of

Countries,

Bank
$45.00

and
per

Note—On

U.

8.

Members

of

per

$68.00
per

year,

per

in

year.

Complete Trading Facilities

WHITEHALL 4-6627

Quotation Record — Monthly,
(Foreign Postage extra).
the

and Distributors

Underwriters

TRADING DEPT. PHONE:

year.

of

CO., INC.

year.

Publications

account

&

fluctuations

In

56 BEAVER

STREET, N. Y. 4

Telephone: WHitehall

4-7650

rate

foreign
must

States,

and

$65.00

$72.00

SIMMONS, RUBIN

Rates

United

Territories
Union,

the

La

•

Pan-American

Other

etc.).
South

the

York, N. Y., under the Act of March 8,1879,.

1960

(general news

at

1942,

Possessions,

Editor

vertising issue) and every Monday (com¬
plete statistical issue — market quotation
rpcnrds
bank clearings
state and city news;

-

Subscription

WILLIAM DANA SEIBERT, President

,

25,

second-claSs

as

N. Y.

9576

GEORGE J. MORRISSEY,
,

Reentered

CLAUDE D. SEIBERT, Vice-President

Exchange

Bought • Sold 9 Quoted

:

Report Available on Request

REctor

Founded

STOCK

29

i5 Park Place,

Spencer Trask & Co.

'

44
1

PREFERRED STOCKS

New

EQUIPMENT

6

,____•

•

dispos¬

on

5

;

Market—Donald D. Mackey—_________

Bond

'

Washington

inclination to be wary

WILLIAM B.

..

RADIO &

2

CORP.

.

Members

Special Study

DAYTON AVIATION

26

The COMMERCIAL and

specialized in

16

COMMON
Attitude

Author's

and Dealers

32

A

they have the money to buy.

you

St. Louis

For Banks, Brokers

Security

agements will do the same. People
don't care what prices are so long
to

Cleveland
Dallas
Angeles
Philadelphia

34

__,

In the sixties man-,

what counts.

<

have

Los

San Francisco

rate.

Big Steel has passed on
enough costs to provide mightysatisfactory profits and that is

able income, you find that we are

For many years we

Direct Wires to

25

__

while prices have gone'

than

.

4

Chicago
-Public

inc.

40 Exchange Place, N. Y.

HA 2-9000

Governments.

"2X." In
costs have

mackie,

&

18

•'

'

j

...•

Observations—A.

are

wage

,

So what?.

will .cost

Singer, Bean

16

profits*

rate of 6V2% per annum

a

since 1929,
up

NSTA Notes

.

example/

Steel,". for

"Big

Back in the twenties it had

you com¬

our

__

demonstfably-

■

than

Corp.

Business

11

Debt

got to grow if America grows.
fact that our debt is larger

bearish argument:

Dashew

Indications of Current Business Activity...

nonsense.*

Rising wages reduce rather;
consumer resistance.

false.

Listen

hear

Jam esbury

Machines
From

profits developing, an

on

the other. This is

on

people feel prosperous.

The debt

Baird Atomics

8

of so-called profitless prosper-,,

era

as

7

___

a squeeze

much
claim

Some

of

DIghy 4-4970

For Long"

and that is what./
buying—future profits!.

baby boom is picking up
steam.
This means billions more
The

Stocks____-______________„______..______/24

Einzig: "British Equities' Weakness May Not Continue

than increase

wages

Broadway, New York 5

today,

are

ity, caused by rising wages on theone hand and consumer resistance;

ment and

39
„

gen-.;

another. Employ¬
will rise and the
public will have the purchasing
power to buy these goods.
after

product

Insurance

____Cover

Dealer-Broker Investment Recommendations

profits far in excess oh what;:

and this ex-< people

penditure will guarantee a strong,
underpinning to the economy. The
sixties will be a great era of dis¬
covery

conservatively project a.
growth rate for the sixies equal to<
the-growth rate of the fifties. This
gives us a G. N. P. of "X".for 1970..

request

J.F. Reilly&Co.,Inc.

(Editorial)______________

Coming Events in the Investment Field___

and so;,

so

was

and

It

on

can

we

,
This school holds we face an
unparalleled decade of prosperity.
There will not be a war because
the Russians are smart enough to

defense establishment

.

School

Bank

See

Prospectus

20

___

t

know

,

5

______

Major Business Downturn Now?

a

What the Fifties Told

they are high, but so is everything
Martin E. Rooney
of
else.
But there is still plenty of
thought,
'
money to be made in Wall Street,
Namely: I. "The' Golden Sixties- provided you have the know-how.
School"; II. "The Buy Foreign Selectivity is the kev. You must
Common Stocks School"; III. "The have
your
money
in the right,
Bill School"; IV. "The Diversified- common
stocks.
Putting
your,
Portfolio
School"; and V.. "The money into savings,- insurance,
ort
Buy
Gold
(or
Gold Stocks)] bonds will not pay off. You must
School."
buy ».something that will protect,
Following each one, the writer you against inflation—even though,

,

STREET, NEW YORK

.

schools

\

WALL

Telephone: WHitehall 4-6551

Ceiling Off Than On

N.attelL

Business Activity

again.

American

out

this

ting

p r e s e n

five

Headed for

Robert

Statistics prove that foreign wages;;
have risen faster than wages in

investment

thinking

it

meet

about

whole horizon
of

3 '

foreign competition before and we

In this arti¬

a

Rboneyl-_.LJ_____2__:.____

—Hon. Julian B. Baird

is why we have such a mass mar-' ket in this country.. We have met

mental.

Obsolete Securities Dept.

la¬

American

Certainly

is paid more than

bor.-We

funda-

are

trade.

of

and areas

1960—MartiniE.

More Mortgage Funds With

we have always had com-petition... Competition is the life

age

____Cover

_

.

Bigelow-Sanford Carpet Co.—Ira U; Cobleighj__

recently heard a great
about, foreign
competition.

Well,

of difference

•

We have

points

are
characterized

"

healthy and comfortable posi-<

a

tion.

eral schools of

(0'Leary_____

•;

«

99

Investment Paths:
in

J.

-

,

of
exchange,
remittances
for
subscriptions and advertisements

be made

in New York funds.

Teletypes:

NY

1-4581-2

4

WILFRED

BY

MAY
A.

1954-59

Let

record in our
substantial
growth is shown over the-in¬

COMPANIES—

net

In

every

case

us

with

Chip

average

Growth

"Sensational

Stocks

New

year's rate of
improvement is being equalled in

of the Century "

Growth

Stocks. \ A

Chips."
"Insiders'

Switch From

Good

Blue

The

■:

■.

Overnight The Sellers

Dip Into Mutuals For Big Profits.

that

fallen

1960.

"The

Furthermore

spokesman for

time

Have Become Wall Street's New Millionaires."

A

such

in

these

as

the

"literature" typify popu¬
expectations concerning the
importance being popularly
at¬
tached to the speculative-invest¬
lar

attributes

ment
the

the

of

in

shares

corporate organizations man¬

investment

aging
with

the

ment

status

companies.

of

these

their

shares'

elements

harbor

omission

and

ment

both

contro¬

extent of their

versial nature and

operations,

the

and

concerns,

As

manage¬

invest¬
of

errors

commission.

public

These

companies'

revenues

commissions from

from

public

public

was

1932,

participation

which

prior

the

the

other

afforded

Court

nullified

prevent

Six

companies

California

1958

to

the

in

back

management

to

April"" 1959>,"v

until

founded

available

not

were

the

to

decision

SEC's

transfer

efforts

of

such

of the Funds' adminis¬

care

trative

scaled

increased size.

istrative fees

Of course, the investing public's
new off-shoot
(or

interest in this

perhaps "pyramid," as has been
charged) was tremendously inten¬
sified, as evidenced in the in¬
creased rate of offerings and their
inflated pricing, midst the follow¬
ing massive Fund and stock mar¬
ket booms.

management

be¬

coming more profitable than their
selling activities, and the call for
management and investment ad¬
visory service stimulated by the
growth of the Funds, the sponsors
been

and

more

more

prone

to enter into contracts encompass¬

ing

supervision of their opera¬
tions and the giving of investment

advice
In

the

into

customary

routine

the

the

fund enters

a

contractual

a

with

Breadth

arrangement

management

and

the

the

man¬

three

of

Funds

through 2,500 corre¬
investment firms, em¬
field organization of 16
Regional Vice-Presidents and five
a

with

Representatives

the

around the country.

Office

Home

major

cities

A substantial
a

prepares

of

mass

"literature,"
reports,
and
other
promotional material for its client
Funds.

It

ranges

for

also

occasionally

their

ar¬

acquisitions of
companies,

shares.

growth

maturing of the Fund indus¬

continuing
Fund in¬

fees.

management
in

large

a

Headquarters
air-conditioned

in Elizabeth, N. J.
automationed, including

building

fully

"Univac"

almost

installation

everything

which

—

a

does

beat

the

Keystone Custodian Funds, act¬
as
trustee for
10
domestic

ing

Funds

and

Canadian

organiza¬
tion, in its main office in Boston,
maintains

a

large investment re¬
a large operating di¬

a

body,

vision

with

the

newest

in lieu of

—

re¬

year-to-year
earnings
record
is
highly significant. The appearance
of some quite sharp intermediate
year-to-year
regressions
shows
their

earning power's vulnerabil¬
ity to certain factors
(perhaps
more
enduring than
"growing
pains"

such
the

of

rest

as

Causes

of

include

are

Fund

the

plaguing the
industry?).

earnings

reversals

slowing-up
of
Fund
share distribution, temporary in¬
crease in redemptions, mechaniza¬
tion expenses, dealer set-up costs,
a

:

Redemptions

"

from
and from

vary

com¬

to company,
yearto-year; their average as a per¬
centage of assets ranging from 4%
pany

11% annually.
Other potential elements of vul¬

nerability are increasing competi¬
tion, not only between these now
"good thing" companies, but in
their

distribution

tinuing sales
being

sure

activities

and effective pres¬
required
merely to

offset asset-erosion

from

Stock

Potentialities:

Pro and Con

eventuality of
Era bear market).

Then

there

New-

a

is

ment
tant

on

now

agency

are

pansion

trend.

SEC

■

For

should

tor's

not
ex¬

if

example,

realize

remains

final

the

question regarding

inves¬

phe¬
Does it represent
pyramid atop a boom

nomenon?

our

merely a
business; or a healthy growth in¬
dustry?
Price-wise,
have
their
recent highs constituted a perma¬

general

its

checker, following
from

Vic,

"Although manage¬
ment companies face some dan¬
gers,
they also face reasonable
promise of high futurer profits.
Therefore, the stocks of these com¬
panies, which the market does not
yet seem to have approached very

analytically, offer interesting

pos¬

sibilities

;

as

investments."

-

t-

To Admit Partners

up

papers

for

morning

the

scheduled
then

and

ads

later

ing day's publication.

At

month's

end, he billed the clients and, in
turn, paid the publications.
Be¬
to

times

discuss
solicit

has

called

his

tenure

the

job,
and

offices expand from
and

one

on

one

back

room

prospects

personnel

the

seen

clients

on

and on
business.

new

During
Vic

he

copy

in

employee
1901

to

Greenwich

on

and

St.

between

Liberty Streets.

branch

offices

Cedar

Out-of-town

have

been

opened

in

Boston, Philadelphia, Chicago,
Angeles and San ^ Francisco,
during this period.
; "v
Los

is

life

a

member

of

Downtown Athletic Club,
ber

of

the

the

a mem¬

Bankers

Club and the
New York Athletic Club.
His hob¬
bies

citrus

are

in

groves

Fort

Pierce, Florida.
Faulkner,

Dawkins

Sullivan,
Street, New York City,

Broad

members

&

of the

Exchange,

New

York

S. T. Smith Opens

Stock

April 1 will admit
Robert P. Colin, Robert W. Farrell
and Robert F. Hague to partner¬
ship.

(Special to The Financial Chronicle)

on

MI R A G
A,
Smith is

Calif.

business from

Samuel

—

engaging in

ASSETS

TOTAL
ASSETS
1959

MANAGED......

MANAGED

FUND

EARNINGS

at

offices

securities

Highway

111 at Dunes Road.

re¬

straining aims despite the reversal
suffered in the California suit,

management
would

be

the
companies' shares

their

ethical

deflated

and

unique

asset

legal

of

premiums
(The

values.

merits

interlocking

which

we

length,

the

of

technique,

are

have

discussed

at

outside the purview of
this article.)

Vietor, Common,

Alexandria Inv.
WASHINGTON,

Dann Admits
BUFFALO, N. Y.—Alexander M.
Griggs on April 1 will become a
partner in Vietor, Common, Dann
&

Co.,

Ellicott

Square,

of the New York Stock

D. C. — AlexanInvestments and Securities,
Inc. has been formed with offices
dria

members

Exchange.

in
in

the

Albee

Building to

engage

securities business. Mortimer

a

J. Sabbath is President and Treas¬
urer.

Market Reactions

Form Howard & Co.

Constructively,
by

as demonstrated
price and yield table, the

our

community
has
al¬
a
"house-cleaning"
eliminating some of its
former "pie-in-the-sky" expecta¬
tions. With the share prices dras¬
tically reduced from their offering

ready

done

in

COLUMBUS, Ohio—Howard & Co.
is engaging in a securities business
from

offices

Road.

at

Officers

4205
are

Clairmont

James

Now's
the

W.

Howard,
President; Howard B.
Noonan, Vice-President & Treas¬
urer; and George D. Massar, Secy.

$505,096,000

DISTRIBUTORS

GROUP,

SHARE

$170,830,000

HUGH
&

W.

LONG

NATIONAL

CO., INC.

&

$751,056,000

SECURITIES

RESEARCH

TV

SHARES

MANAGEMENT

$477,203,000

time.

*.

$308,007,000

$723,680,000

$423.00

$281.00

$783.00

$1,170.00

$80,644,000

Not Available

$111,372,000

$147,900,000

$0.23

$0.24

$0.27

0.40

0.31

0.45

0.34

0.391/2
0.24'/2

0.11

0.55

0.43

0.15

0.55

0.54

0.18

0.51

0.55

0.58

0.28

1958

0.31

1959

0.72

12

MONTHS

ISSUE

0.59

$0.55

i

or

0.49

Our

0.50

0.46

0.50

specialists will co-operate

0.57

0.66

1.28

Initial $0.15

fully

0.85

Initial

Applicable

Aug. 17, 1959

Aug. 10,1959

Sept. 30, 1959

Not

Applicable

$32.00

Not Applicable

$25.50

$23.50

35

26

391/2

18
Jan. 14,1960

Aug. 31, 1959
1959-1960 LOW

8

DATE

Mar.

CURRENT

PRICE

CURRENT

DIVIDEND

(Mar, 14, 1960)
YIELD

RATIO.........

2, 1960
17

15, 1959
IOV2
1960

Feb. 4,

Aug. 17, 1959

17.6

3.1%

3.2%
21.6

Mar. 2,1960

14

22.1

°

Jan.

12, 1960

;

solve

get

flexible

and

fast

action at Talcott.

Call

1534

or

visit

any

of our offices.

J7.

Not Available

! :i

you

plans

Mar. 2,1960

28

help

You

.

231/2

Mar.

17
•'

Nov. 25, 1959

141/4
2,1960

■

Mar.

3.1%

22

Aug. 10, 1959

17%
2, 1960

2, 1960
17

Not Applicable
..

Applicable

April 10, 1959

16
Mar.

13

3.7%
24.3

Dec.

Not

to

needs.

$18.00

34

15

credit

experienced

yourfirm's working capital

$0,121/2

$18.00
24

Factoring

0.27

0.25

$0.45

|

about Commercial Financing

$0.24

$0.12

0.19

0.78

$0,521/2

■(

Not Available

Not

HIGH

PRICE-EARNINGS

0.95

Initial $0.15

$0.55 '

$0.16
0.38

April 28, 1959

PRICE

Talcott

$1,060,000,000

$767.00

$104,174,000

1956

DIVIDEND-LATEST

"1? to talk to

WELLINGTON
MANAGEMENT CO.

$400.00

1957

ISSUE

REED,

$39,980,000

$0.23

1959-1960

&

INC.

SHARE:

1954

OF

WADDELL

CORP.

$481.00

1955

DATE

INC.

$107,838,000

PER

SALES
PER

FUNDS

Not Available

a

20.6

i

Keystone adjusted for 3-for-l split April, 1959.
tOur acknowledgment for their cooperation in furnishing statistical data is
gratefully given to May & Gannon Inc., Boston, Statistical Dept. (Messrs. William
Burke Jr. and Richard E. Murray); Moody's Investors Services; Standard & Poor's;




T.

a

"'

CUSTODIAN

a

point where the New York office
now employs over 200
people oc¬
cupying four buildings, and the
agency owns the entire blockfront

FINANCIAL DATA ON MUTUAL FUND MANAGEMENT COMPANY SHARES!
^KEYSTONE

in

the day delivered ads and news
items to the papers for the follow¬

.Vic

F aulkner,Dawkins

public

affectionately

newsstands, checked

publications
each

to

bill:

he is

as

known, initially picked
from the

Perhaps the following conclusion,
arrived
at in
a
study, "Mutual
Fund Management and Distribu¬
tion Companies as Investments,"

the

his
gradu ation

Victor J. Cevasco

tween

fills

and

newspaper

nent summit, Or merely a tentative
foot-hill to be soon surmounted?

by Karl H. Vesper, at the Harvard
School of Business Administration,

a

ger,
office

assistant

school.

Conclusion?

Investment

as

e s s e n

m

for

23

on

12,

1901,
Mr.
Cervasco
joined the

(it is unavail¬

is

Back

Mar.

group is 3.4%.
The impor¬
price-earnings ratio is now

ages); while the ratio
management shares.

-

York

City.

the Fund manage¬

Industrial Average

Albert

New

the

yield
on
Index

Stock

director

a

Guenther Law,
Inc.,
131 Cedar
St.,

2.2%, while the averaged divi¬

dend return

521

overhanging
regulatory and legal elements that

job

Confronting the investor, be he
already "in" or prospective, is that
question
of
how
these
issues

dividend

Growth

Cevasco, Sen¬

Frank

has

Index

beginning

of

At the same

4%.
of

;

.

continuous

and

group

apart

even

—

the

New

(con¬

investment
Growth

The

Moody

There

However—our tabulation of the

electronic

equipment, and directs a country¬
wide sales organization.

the

of

year

ior Vice-President

able for the S-P and Moody's aver¬

accepted

above

but

Dow-Jones Average.

60th

of a full 36%.

What

the

marked

12

the

management
companies has suffered a net fall

Some Con's

to

March
of

service for Victor J.

estimated at 15 for the Dow Jones

could decisively slow up, if
personal holding
thereby increasing the base of its* actually reverse, the existing

company,

quantitative

the

only

by
our

;

60th Yr. at AFGL

Standard &

and-Fund boom.

Operations

spondent

in

of

for

•

garding them investment-wise as
a
pyramid atop a stock market-

the public

ploying

premise

demand

'

\ '

etc.

Depth

shares

distributes
to

by the management, to
the fund for a fixed fee

With

coming from

Hugh W. Long and Company,
Inc., exemplifying the newly ex¬
panded scope of these companies,

controlled

manage
and to distribute

about one-third

run

and

search

board of directors of

with

agement charges.)

are

Funds'

With

correlated

(Keystone's admin¬

less than those

headquarters

Growth of the Business

have

reduction

'

Cevasco Starts.

mar¬ 'igpi

.

be

the

takes

"

Thursday, March 17, 1960

1959

is assumed,
then
growth of these organizations

can

Regional

shares.

the

corresponding

strumentality

un¬

come

Boston, now managing more than
$500 million of assets, although its
shares

If

derwriting and distributing Fund
shares
(usually the largest pro¬
portion), and from management
and
advisory services.... In some
cases, as in the Keystone set-up,
the management company, in ad¬
dition
to
its
advisory
services,

—

Keystone Custodian Funds, Inc. of

the

naturally progressed enormously
volume, breadth and depth.

activities; that is, their
Some
of these this
article will
"housekeeping" expenses, as for
attempt to reoair.
rent, bank charges, etc. — which
First, it should be realized that they undertake for a flat addi¬
their existence considerably ante¬ tional fee. The charge for advisory
dates their "discovery" during the and management services custom¬
recent upper stages of our Bull arily is one-half percent per an¬
based
on
the
total
Market.
For example, Distribu¬ num
daily
assets
sometimes with a sliding
tors Group, underwriter and in¬
vesting adviser to Group Securi¬
ties Incorporated, comprising
20
mutual funds, has enjoyed some
public ownership ever since 1928.

of

months of 1959.

in

of the

one

of 20

ket-wise by 11% net;
Poor's Growth Stock

-

try, the managerial services have

current

in¬

are

last

largest companies tells us that de¬
spite the recent market "sloppiness,"
its
managed ; assets
are
running 16%, and earnings 15%,
ahead

Headlines

we

,

Moody's Index

Stocks,
from
its
high has declined

class.

Growth

terval.

Foot-Hill?

or

they shape up

respectable

more

our

formed

Their Growth at Summit

how

see

"growth" stocks of the listed Blue

in the

seen

earnings

table.

FUND-MANAGEMENT

is to be

.

yields now are
not fantastically out of line
(at
least comparatively).

.

answer

.

dend and earnings

rectly or somewhat over-imaginatively).
One

.

divi¬

and/or subsequent highs, the

should
actually rate as growth
situations; either absolutely or as
compared with listed issues popu¬
larly so classified (whether cor¬

OBSERVATIONS...

THE

Chronicle

The Commercial and Financial

(1172)

Mr.

Karl

istration.
Fund

H.

Vesper, student in the Harvard

Current

Section,

quotations

Monday

from

edition.

The

Graduate School of Business
& Financial Chmnifl„

Commercial

'

,

Ad

*

iui

_

u Ua'

NEW YORK

221 Fourth Avenue

1"n7
Chicago

•

,

ORegon 7-3000

Other Talcott Offices Serving:
Detroit • Boston • Atlanta • Los Angeles

•

V

J

,

.

Number 5934

191

Volume
V.'

.'

r

>

...

.

The Commercial and

•.

.

'

i

(1173)

Financial Chronicle

5

t

Steel Production

is

which

of

industry
a
tribute

entire

the

in

costs

course

—

to

Carloadings"

managerial efficiency.
Not only
operating
management
top¬
flight, but the Board of Directors
is one of the most elite in the in¬

Enterprise Economist

trends in the carpet industry,
the rising sales and earnings power

Containing a short review of recent,

dustry.

with

development
holding considerable future prom-

particular emphasis on
of Bigelow-Sanford.

•

;

recent

A

new

postwar

years

;
ise is a new petroleum-based
companies synthetic fiber with quite rein the industry have upgraded markable qualities. Of all mantheir managements, and most have made fibers up to now, this one
recorded
noteworthy improve- comes closest to duplicating the
ments in profit margins.
durability, quality and texture of
j.
r
^
wool at a substantial lower price,
Third Largest in the • jsusiness This unique fiber is manufactured
One of the major carpet makers, by Montecattini, famed Italian
entering the Sixties with a for- chemical company, and Bigelowward look, is Bigelow-Sanford. Sanford is to have exclusive sales
The successor to a rug and carpet and distribution rights for it in
business founded in 1825, Bige- the United States.
low-Sanford
,
ow-Sanford is now the third
is
now the third
,
Farninfrs iWrend
Earnings Uptrend
largest in the business. .Its sales . ,
Earnings uptrend,
for this year should run to $80
From the investor viewpoint the
million—up from $72 million in most significant thing about this
1959.
,
company is the sharp turn-about
Bigelow-Sanford used to manu- in earnings. For 1958, there was a
facture in two big Northern mills, deficit of $1.91 per share and, of
The one in Amsterdam, N. Y., was course, no dividends. Last year
sold five years ago. In 1958, the - a net of about $1.70 was recorded
other, at Thomasville, Conn., was and for 1960 this per share net
sold under a lease-back contract, might get as high as $3: lhats a
and only about 40% of its space pretty good showing for a stock

the

carpet industry was a lush one
and profits came rolling in.
The
peak year was 1950 when pent-up
demand
made carpet selling al-

most

the

permitted

and,

automatic,

even

four-story

old

tired

weaving mills in New England to
tread out a profit.
In 1950, 85.7
million
yards of woven-wool
carpet were produced.
Axminster
was
the favorite

broadloom

for

and the mode was for
fancy floral patterns, offered in
a vast variety of colors. (The huge
weave,

Axminster
looms
were
old New England
Crompton & Knowles of
Worcester, Mass.)
.

$50,000

turned out by an
company,

pulled the rug
industry fell on
dreary days. First it was the price
of carpet wool. This rose in 195051 from 60 cents a pound to $2.50.
-

Then

somebody

the

and

carpet

..

.

.

Business Failures

hv
by

3
dominant

NnrthMct

the

tn

r»rnrhir*oc. txtoll

n-uor

PIO^

of

now

niifmif

produces well over 80% of output
below the Mason-Dixon line.
As

from

important to the trend away
the North was the' fabric

nylon and acrylic fibers and more
recently Chemstrand's Acrilan.
Such, in brief, were the problems
which
dogged
the carpet
trade for most of the Fifties. But
those debits havelnow been writ-

Mark

Government

circles

downtUrns by the average number
Qf months indicated: (1) failure
liabilities of corporations — 10
mordhs; (2) industrial stock prices
7 months; (3) new orders, durable goods__6 months; (4) residential building contracts — 13
months; (5) nonresidential buildjng contracts
12 months; (6)
average hours worked—7 months;
(7) new incorporations—4 months
and (8) wholesale price index, 22

will be lowered to 3,350,000^ during the spring months,

estimating

.

Bank Clearings Decline 0.4% in
Week Ended March 12 over 1959
Week
Bank

show

a

this week

clearings

year ago
Preliminary figures
compiled ' by
the
"Chronicle"

based upon telegraphic advices
from the chief cities of the coun-

basic commodities—5 months. All
leading indicators were expandjng prior to the strike but weakness
began shortly thereafter.
Until recently it was difficult to
interpret the weakness because of
lack ,of data since tbe strike. At
present three months of post-_
strike data exist, and, although
some firming in the leading indicators has occurred,. they none-

try, indicate that for the week
ended Saturday, March 12, clearings for all cities of the United
States for which it is possible to
obtain weekly clearings will be
0.4% below those of the corresponding week last year. Our preliminary totals stand at $23,545,310,658,-against $23,630,297,953 for
the same Week in 1959. Our c
parative summary for the leading

theiess continue weak.F,^ilui;e money'centers in U. S. A. for the
0f the leaders to snap back after week follows:
_
^
the strike period suggests that the wee^Ended ,
ooo omitted
,
%
I
0.9
eardy indications of future diffi- . Mar. 12—
i960
1959
5.1
Cldties are beginning to appear
New York__$i2,322,366 $12,208,675
9.2
+
2.1
. „ch
the annual rate of
,
° *rnwth havp al<?n fre- Boston.___ 670,642
656,715
—

S&pbta "fl.ooo ffi'SS

H/

f,i„PS tn

iH H

trlnds.®5

In

oSlruf

business de-

Froductlon 1,1 First Quarter
steel in2ot Production this
Quarter will set a record, "Steel"

cline
The iongest iead has been
2g months. Monetary growth was
sharpl
depressed
during the
strike period due largely to the

The metalworking weekly forecasts production of 34.7 million
ingot tons of steel, nearly a mil-

the nast 35 years monetary growth
h
turned downward 23 months
average

P.

before

a

,

th

banks
Federal

magazine predicted,

« indebted-

Reserve How-

—

weddings and visiting dignitaries).
The rising number of new. family

personnel, for 82,325 comshares at prices of from $12

to $14.50 a share.
value is $36.)

formations, vear an
hous
1 200 000 a

(Present book

the most impressive
the Bigelow-Sanford
picture is the quality of management. Two years ago Mr. Lowell
of
in

Income

all-time hi«h
and

business

current

-

-

exnan-

nnprQti"c „nnfi nuf>J

jfa hTh level'lfeXaS'oTer-

medium length °f Past recoveries ated their furnaces at an estimated 92'9% of capacity (vs. 92.8

The dfs- ^

-duding war i„ the prions week) and poured
about 2,647,000 ingot tons,

aFth^ * ™ 35

F- High-Calibre of Management
One
things

national

„Th

things augur well for "the carpet periods and the rise following the
business. , And Bigelow-Sanford Great Depression. Although shortwith the modern, efficient plants, term business prospects appear
highly competent management,
fine products and smart selling

While steelmaking operations
Continued on page 12

p.

Weicker

was

made

and substantial progress

®)
1870

nership.

Correspondents inprincipal cities

1894fc

throughout theUnitedStates and Can4da

With E. W. Clark

MUNICIPAL BONDS

GERMANTOWN,
Godfrey has

CORPORATE BONDS

Pa.

—

John

L.

become,a registered

representative in the Germantown
of E. W. Clark & Co., 18

UNDERWRITERS AND DISTRIBUTORS

office

LOCAL STOCKS

r

OF INVESTMENT SECURITIES

Chelten Avenue.

West

-

•">

f

'

r-

•

'*•

'

(

U-:

Robinson-Humphrey Company,Inc.

f: - Elected Director

VJohn- C> Whitehead,
the

i.

*

RHODES-HAVERTY BLDG.
ATEANTA 3, GEORGIA
.- y.f'i
. h '■ H X '■ if " ""»i 4'
.Vv
*
< <
—
r '
s JAckson 1-0316
:
•
. \
.
"




-

c

ment

ESTABLISHED

The

will

decrease compared with a

President
has been appears in-a position to prosper,
ten'.off and today the carpet in- evident under his'guidance. The
*
,
'
'
dustry offers a rising pattern of introductionof
attractive new -v-r
T)
"U
4prosperity. The new tufted carpets product dines and more concen- <J^ OriTl£in JlvO061*18
made of synthetic fibers are much
trated and aggressive selling have xttmi
AT
• i
cheaper than wool and the total * resulted in steadily rising sales.
111 AnTTllt/
market
has
broadened
signifi- Lessening the wool end of" the-'1-1
cantly. Rising levels of consumer- business and increasing the use of SAN DIEGO, Calif.—-Norman C.
income and the great popularity synthetic fibers has stabilized raw Roberts Company, 625 Broadway,
of.solid color wall to wall carpet- material costs and improved profit members of the New York Stock
ing, soft, luxurious, and "status" margins. In fact Bigelow-Sanford Exchange, on March 24 will admit
building, have expanded sales; Not is now believed to have the lowest Winthrop'D. Waterman to part¬

STATE AND

reported

mark and that in February 64,520,000 Americans were employed
in gainful occupations. This
February record is more than
1,000,000 above the old high set
in February 1957. It is expected
that the number of unemployed

of

no

lion previous bestwere poured last
the more than
quarter — in
N/™.Yort Stock Exchange In out-about 80% for private homes ever, since the strike period there year's strike threatened second
addltlon there are to key
incentive stock and the rest for hotels, office has been no indication that mone- quarter.
options,a co rded
jTianage- buddings, ^ops^motor^ cars^£also tary growth has revived.
Despite a softening of demand,

in

man-made^fibersTTcetateTayon,

Dropped Below the 4,000,000

changes in sensitive leading indicators have frequently been of
help in the past A National Bureau of Economic Research study
hag disclosed that adverse trends
in the foliowing eight indicators
have
preceded
past
business

moTt^of the °i $4'50ofPreferred- listed1,022,410 above 1949 This year',155will roll
and on the square yards of carpeting million
of the shares
common
most

Unemployment for February

this week that unemployment
dropped a little below the 4,000,000

bought fran-

one
one

pansion."

foolproof method
the future exists

"Although

filll/LH

in.

good, present evidence suggests
the economy is entering the latter
phase of the current business ex-

'

.

iTTn anne
set
One

,

<

^

In the March issue of its "Barometer of Business," the Harris Trust
& Savings Bank, Chicago, discusses the trends in various economic indices as a possible clue
to the nation's business outlook,
As applied to the current situation, the publication makes the
following comment:

tically on the way up,, got hung
up with a big inventory on the
way down, as broadloom productiorr fell 30%
in 1951.
The fat

i

Commodity Price Index

'

is now in company use. In the selling at $18.
South, the company has a big
About dividends, the record for
mill at Summerville, Ga., for the past decade was spotty... Cash
manufacturing tufted carpets, a dividends were paid in six years
velvet carpet mill at Landrum, out of 10, ranging from 25 cents to
earnings of 1950 faded, in many S. C., and two smaller mills in $2 (in 1950).
The provisions of
cases, to deficits one year later.South Carolina, and one in Virthe note agreement will probably
The disastrous market in wool gima for yarn production.
prevent any cash dividend dewas not the only headache. Fierce
Several things made Bigelow- claration until the last half of this
competition from
a
variety of Sanford common stock merit at- year; but a modest dividend in
"hard surface" floorings arose—
tention as an attractive specula- stock
(3% was paid iq 1959)
linoleums
and
tiles
of
plastic, tion- First, the major corporate might be expected in any event.
asphalt or rubber. Then the Tariff problem of plant relocation, and When so many common shares,
Act of 1930, levying duties of 60%
reorientation of product mix have even after the recent market
on European and Asian carpetings
been solved. The Bigelow-Sanford shakeout, are still selling at from
was
rewritten. „The
duties' on line is respected for quality and 15 to 20 times earnings Bigelowbroadloom were reduced to 21%;
effectively distributed through Sanford
available at about six
t»5|
u v ti
*
■and imports lUDv from itoo than over ijuuu i ttaix ouncuo.
rose 11 viu less
4,500 retail outlets. uvv-v/iiVAj times its per share'j • net for 1960
Second,;
"omestic
five year program of can hardly be regarded as overover3% in 1951 .to 11%% of; domestic a; major
a* major
five year program of can
consumption
in
1957.1'/
1957. •' Finally, plant expansion and improvement, pricey. It it paid a $1 dividend
price^.. If it^
dividend
tufted carpets, ,made more swiftly
involving over $18 million dollars, this year, the yield would be
on much less costly looms, surged
was completed last year. This new 5.55%,
exclusive of a possible
forward in popularity and sales,
plant investment alone amounts stock dividend.
And on the
The ancient multi-story Northern to about $18 a share on Bigelow
'^own"^de there: is little reason
mills
with
their/vintage looms, common — and that is what the for a stock to sell oft when its
requiring high priced craftsmen stock sells for currently.
'• .
earnings are expected to increase
to ntn them, just couldn't compete:-;Despite the size of the foregoing 75% over last year ■
.
. ;
with
the
newer
more
efficient outiay, working capital position
Almost every industry at one
mills, majoring in tufted looms is highly satisfactorv with current time or another goes through a
that sprang up in the South. The assets (at Sept. 26, 1959) of $37 "tired" phase. The carpet industry
Dixie
states offered
not only a miHion against current liabilities has already had
its threadbare
much
lower
cost
of labor,
but 0f onjy $7 million. Capitalization days. Actually carpets are in a
nearness
to cotton supplies, sub- is quite simple with $16 miiii0n growth trend with total industry
sidized mill financing, and much ln long-term notes, 30,620 shares
carpet deliveries last year 120%

Many mills that had

Food Price Index

TRADE and INDUSTRY

only that, but leading

.

*

Auto Production

.

immediate

the

In

' "

Retail Trade

The State of

is

By Dr. Ira U. Cobleigh,

,

Electric Output

L*

:

7

j.

:

*

.

partner in

investment -banking' firm

Goldmahf, Sachs & Co;, was
ed

1

-

a

director

of .Crompton- &

Knowles-Corp'oratioiv atr the- -company'-s- annual- meeting.

=

'

'

-

"

'

'

'

Dominick

Of

elect¬

;

'

^

f

t

&

\

f

^

Dominick

Members New York, American & Toronto Stock
14 WALL STREET

"

-

Exchanges

NEW YORK

6

The Commercial and

(1174)

Financial Chronicle

.

.

.

$311,830,500. Large blocks

ceiling on long-term Treasury dar will be gradually genfinancing might be considered rerated and underwriters will
academic
from
a
political shoulder more difficult reBY DONALD D. MACKEY
viewpoint. It is possible that ;sponbilities. The "Blue List"
amoderate amount .of long total of municipal bonds is
bonds could be floated now '$303,748,500 at this writing,
The state and municipal bond
Relative to authority issues' at 4*4%. or better. This, is down * from' $288,219,500 on
market
effortlessly
pro- and
perhaps other- public :nc.t to infer that a change in Tuesday. A week ago it was
the
interest
ceiling is not
gressed to higher levels dur- revenue projects, it is of gen-

TAX-EXEMPT BOND MARKET

recent new issues
ing in the market
ary

*

■

.

desirable. It is, in reality, a
;
necessity - if the Treasury De¬
irre- Conference of the American partment is
to conduct its

ing the past week. The genimpression that inflation
slowed

been

has

to

an

eral interest to note the reported attitude of the Eastern

the stock market decline that
has

by indirection confirmed
general conception,- has"

this

motivated

municipal bond
market rise that has averaged
close
to
three points
since
the

a

year-end.

The Commer-

stands

the following tabulations we list the bond issues of
$1,000,000 or more for which specific sale dates have been set.

A

16.

week

manner,

passed

was

generally

i

sen¬

Information, where available, includes name of borrower,
oj issue, maturity scale, and hour at which bids
will be opened.

//%■

■

amountv

conThe

Monetary Factors %
derailing the growing menace
-As the bond market shows
represented by "self-dedicated and self-perpetuating further improvement, more
authorities." This alluded implications are brought into
partly to the proposed new consideration. The general
East Hudson Parkway Au- level of government bonds

comprised of Sprain prices is approaching

March 17 (Thursday)
•

Eastern

at

Reserve

discount

resents about a one-half

gain.

-

Central School Dist. No.

Spectacular Rise in Toll
Issues

'

•

<
.

investors could prepare

Some

general resistance to

dollar-quoted revenue authorities has been generhave
generally done ated, particularly in regard
better since January 1, I960,'to expansion and enlargement
than the municipal bond aver- of
sphere. Investigation is
ages are apt to indicate. Dur- threatened in some instances.
ing this brief span (1/7/60rent level.
3/10/60) the Smith, Barney
§ ®J*. lonT Triborough
& Co. "Turnpike Index" went
The
thinness
Authority Issue Near
.
from
an
average
yield of:
The only large negotiated quent volatility
4.32% to 4.03%. This would tax-exempt bond issue close exempt market
The

issues

^

,

of

p.m.

./
:
2,395,000

1963-1990

3:00

p.m.

Dowagiac

a

Gadsen,

Union

1,990,000

1962-1989

8:00

p.m.

/T,000,000

Sch.

1966-1975

2:00

p.m.

1,140,000
6,322,000

1961-1970

11:00

a.m.

1961-1975

10:00

a.m.

2,500,000

1961-1980

1,200,000
1,000,000
2,250,000

1962-1981
1960-1979

Mich.

Dist.,

Alabama

Lawrence, Kansas

•

*

Milwaukee, Wise

Toole County,

West Deptford

Twp. Sch. D., N. J.
March 23

Battle

Creek,

Morris
Port of

Oakland, California

Michigan

March 24

1:00

p.m.

2:00

p.m.

10:00

a.m.

1962-1985

10:00

a.m.

1,200,000

■

Dist., Calif.

1962-1990
1961-1980
1962-1980
1961-1980

1964-1986

State; Thruway

came

In

to market

on

March 15.

'

2:00 p.m.

^;
-

;

,

.

.

1961-1980

8:00 p.m.

1961-1980

1:00 p.m.
-

1961-1984
1961-1990

11:30

1960-1974
'.

-

Sweetwater Union High S. D., Cal.

2:00 p.m.

1960-1987

•_

York

1:00 p.m.

(Thursday),tUMK

__

;

Noon

a.m.

.

1962-1971

10:00

a.m.

1962-1970

l:30"p.m..

1961-1980

8:00 p.m.

1961-1990

10:00 a.m.'

1965-1985

1,145,000

8:30 p.m.

1961-1985

10:30

a.m.

10:00

a.m.

writing weekly on the
March 30 (Wednesday)
An dssue of
$6,322,000 Al¬
points; New tax-exempt market, the imChicago Board of Education, 111
.25,000,000
1962-1980
Jersey Turnpike 3148, up six pression may be gleaned that legheny County, Pennsyl¬ Freeland Community S. D., Mich. • 1,800,000 1961-1989
points and Maine Turnpike these bonds in themselves vania, the largest sale of the Ladue, School District, Missouri__ * 3,300,000 1961-1980
week, was awarded to a group
4s, up five points.
- fluctuate somewhat independMarch 31 (Thursday)
headed by the First National
Austin, Texas
;-r
There are reasons for cer- ently of other phases of the
___/; 7,500,000
1963-1984
tain of the turnpike and reve- bond and securities markets, City Bank of New York. The
April 4 (Monday)
interest cost was 3.47% for Cincinnati
School District, Ohio__ nue
bonds doing better dur- This, of course, is not the case
4,000,000
1961-1984
bonds
maturing
1961-1990, Florida Development Community,
J.
ing this period other than that and it may assuredly be said
Florida
with the longest bonds
>;• 4,945,000
1962-1990
yield¬
the general bond market is for
rather • obvious reasons
April 5 (Tuesday)
doing better. For* the past that U. S. Treasury issues ex/ ing 3.55%. Yesterday morn¬ Pulaski
County, Arkansas
1,250,000
1961-1968
ing's balance was about $4,year, project revenues have ert more influence on the gen100,000.
The
April 6 (Wednesday)
day's
other
*
generally improved. This rela- eral bond market than any
New Berlin Union Free High Sch.
;
important issue was $3,500,tive gain has continued dur- other
category of bonds,
District No. 5, Wisconsin
"___
2,400,000
1961-1980
000 Jefferson County (Lakeing the rigorous winter Treasury bonds have risen
;
April 11 (Monday)
wood), Colorado/School Dis¬
months. The season of even drastically
during the past
San Jose Unified Sch.
Dist.,! Calif. '/ 3,557,000 '
trict
bonds
sold
to
the
higher revenues is at hand, few weeks-. All of-the longer
A
April 12 (Tuesday)
Harriman Ripley & Compar¬
and new monthly peaks are term issues yielded less than
Escambia County Special Tax Sch.
*
'
•
and First Boston Corp. group.
District No/1, Florida________L
generally anticipated in many 4V4%. at last night's close,
3,235,000
1960-1978
The issue was scaled to yield
cases.
Moreover, these bonds
Should the
present bond
April 13 (Wednesday)
3.90% for the 1979 maturity. Palm
are
usually more marketable market trend continue, and it
Springs, California.
<1,550,000
1961-1980
The last two maturities were Steubenville School
than
District, Ohio
4,000,000
1961-1980
serially maturing mu- seems not unlikely, the quesnot
reoffered.
Current
bal¬
nicipals.
tion of removing the 4V4
April 14 (Thursday)
% ance is $300,000.
Clark County School
Dist., Nevada
3.10s,

p.m.

1,568,000
1,600,000

.

New

a.m.

2:00

3,500,000

'____
: 1,050,000
well be" Athens, Tenn.
3,086,000
I represent an average rise of to market involves.$100,000,-v kept in mind by both dealers North Tonawanda, N. Y.___
March 28 (Monday)
about five points. The more-000
Triborough Bridge ?,&, and investors. The concentra¬
Clackamas County School District
spectacular performing reve- Tunnel Authority serial and tion of a few large new issues
No. 7 (P. O. Oswego), Oregon
1,712,000
nue
issues
include:
Illinois term
bonds /scheduled
for; often sets the market -back Parma School District, Ohio___
1,200,000
Toll
or.
three
334s, up eight points;- mid-April offering. From a two
points
over
;
March 29 (Tuesday)
Illinois Toll 43/4s,
up
eight, current
market
viewpoint,, night. Admittedly, however, Charlotte. North Carolina..
•
2,265,000
points; Kansas Turnpike 3Tss, the public offering-was as-; most of us do not fully Islip Union Free S. D. No. 12, N. Y.
5,629,000
2,500,000
up six points; New York State sured
when the New York awaken until, late the next Jacksonville, Florida
Minneapolis Special School Dist.
Power
Authority 3.20s, up Senate (3/15/60) sent a bill morning.
~ /' /
No. 1, Minnesota
1,950,000
five points; New York State to the Governor which would
Omaha, Nebraska
"2,400,000
Recent Financing
Power
Riverview Gardens, Missouri
Authority 4.20s, up lift ; the 4%; ceiling on the
j 2,085,000
Two
four
interesting,
if
not Rockville, Maryland
\ 1,700,000
points;
Virginia
Toll Authority's bonds, for a peSouth Park Ind. Sch.
Dist., Texas * 2,500,000
voluminous,
Eevenue 3s, up four points; riod of five years.
underwritings
•
_

p.m.

2,150,000

.

Rivers, Wisconsin

tax-

7:30
11:00

(Wednesday)

County, N. J.___

may

2:00 p.m.

Shelby High School

District, Montana
Union County, North Carolina

Two

p.m.

/,

-

Minneapolis, Minn.
South

p.m.

March 22 (Tuesday)

V

conse¬

the

8:00
1:00

>■

San Juan Unified Sch.

and

1961-1985
1961-1983

•

Hutchinson,'Independent Sch. Dist.
No. 423, Minn

of lower rates even
though it could be but brief.
From a money market view¬
point, the year has already
proven itself not accurately
predictable; bond rates par¬
ticularly, seem likely to
widely fluctuate about an
average not far from the cur¬

for

2,180,000
2,300,000

p.m.

March 21 (Monday)

>■/..

___

to period

a.m.

.

2:00
2:00

2,799,000

.

.

ably payable from tolls,
improve the system.

10:00

;

1961-1989
1961-1980

1, N. Y.

Edison Township, New Jersey—4
Euclid, Ohio

action

$50,000,000 of bonds, presum-

•

;

.

York, The new authority contingent to some extent 011
point-would have power to issue the market level, dealers and

■

-

1963-2000
'

University City. School Dist., Mo. v". 2,250,000

an area

rate

1,900,000

Kentucky

yield' B r o o k, Taconic State and compatible with a lower dis¬
March"- Cross County Parkways in count
rate.
Were
Federal

the average-Westchester County, New

ago

Kentucky State College,

Poughkeepsie, LaGrange, Etc.,

3.519%. The change rep-.

was

:

a

>

average

3.488%

at

requirements, in.

sible

thority

cial and Financial Chronicle's

municipal bond

Association at its

conclave. A resolution

the Automobile

for

ducible-■ minimum

appear

Larger Issues Scheduled For Sale

:

■

present at least, coupled with recent

second-

as

offerings. It would

In

.

debt

of
show-

are

that retail placement of new
issues during March has not
been as broad as initial takedown might have indicated.

'

eral

Thursday, March 17, 1960

six

up

'
:

8:00 p.m.
4:00 p.m.

.

10:00 a.m.

______

2:00 p.m.
-

.

•

11:00 a.m.

10:00 a.m.

1

-

8:00 p.m.

>

__1

^

•

*

:

•

■

.'

•

;

10:00 a.m.

3:00 p.m.

____

1:00 p.m.

•

.

MARKET ON REPRESENTATIVE
Rate

6,000,000

SERIAL ISSUES
Maturity

Calendar Continues
Bid

Asked

31/2%

1978-1980

Connecticut

4 00%

3 80%

(State)

33/4%

1980-1982

New Jersey

Highway Auth., Gtd._-

3:S5%

3:40%

3%

1978-1980

355%

340%

mains very
light,
to the technical

3%

1978-1979

3j>0%

3!35%

the

California

(State)--.

The

new

Light

issue calendar

re¬

1974-1975

3 25%

3 10%

3%%

1978-1979

3.25%

310%

31/2%
33/4%

1977-1980

3.50%

335%

March

1978-1980

3.90%

3.75%

Baltimore, Md.____
Cincinnati, Ohio
New Orleans, La
Chicago, 111

3y4%

1980

3.70%

31/2%

1930

3.55%

3.50%
3.40%

3y4%

1979

3.75%

3.60%

some of the dull summer
pe¬
riod. What may come later is
no
deterrent in
considering

3y4%

1977

3.85%

3.70%

current

New York City, N. Y

3%

1980

4.00%

3.90%

the

York

(State)
Pennsylvania (State).
Vermont (State)
New Housing Auth.

(N. Y., N. Y.)

Los Angeles, Calif




3%%

March 16, 1960 Index

=

3.488%

a

market.

than

it

usually is for

bidding. However,

market

trend

Triborough Bridge & Tunnel
Authority, N. Y
1

which adds

strength of
Actually, it is
lighter for the remainder of

New

now

as

goes,

considerably heavier calen¬

New York

'

,

.

April 27 (Wednesday)
City Housing Authority,

Sacramento

20,470,000

11:00 a.m.

1962-2010

April 28 (Thursday)

Municipal Utility Dis¬

trict, California

30,000,000

_____

May 3 (Tuesday)

River.Valley Water Supply

JDistrict, Mississippi
&

-

100,000,000'

New York

Pearl

__

April 19 (Tuesday)

1

______

Co/and 'AHen04eCo!,y^?cIl°en'

•

..

,

8,800,000

& C°" Whi"' W"'d & C°" W' E' Mor""'

1

,r

Number 5934

Volume 191

Financial Chronicle

The Commercial and

...

.

(1175)

economies

More Mortgage
Rate Ceiling

Funds With
Off Than On

the

''dollar

it

available
government bonds than with

■*

•

official details reasons the ceiling should

Means Committee bill would

;

Ways and
essential debt lengthening.

permit some

to

war

Dollar
ment

Two major and

basic problems are
facing the people of this country
today. They are not the only prob¬
lems confronting us, but I submit
that

overshadow

others

all

the

a

The

t

•

lost

Union

ques¬

the

and

would

many

,

the future de¬

pend
on
our
finding the

right

Julian B. Baird

answers
these
two

to

the

War II will

in intensity. But I

In,

back

get

adequate defense to back it up is
a
massive and unbelievably com¬

problem

dividual in Russiai

or

cause the almost instant
struction
of
much
of
what

acceptable

the

the

we

of

our

if

-by

*

means

.

■

.

,

is

administration

the

the

size

of

the

that

we

tive. Here

,

some

Surely

respect.

growing realization that

in

crease

taking

this

of

cannot,, on the average, in¬
faster than the over-all in¬

wages

productivity

without

prices following suit. Some of the
public opinion polls indicate this
Lesson is beginning to sink in. Let
us
hope; that we won't have to
learn
so

the

the

No,

-

efforts

hard

way

as

nations have had

,

.

the job

the

lesson

other
/

many

to do.

t

of

not

easily

can't

Government

do

alone, but nevertheless its
the

are

lost

be

if

nancial

sine

qua

fail to

we

that support

anti-inflationary budget and
etary policies.
Can't Finance Deficit

Indefinitely*

was

said

by

many

activities.

This advertisement is not and is under

a

submitted to the Con-,

year ago

gress

fiscal

budget for the
1960. He led such a
fight for - its adoption

balanced

a

year

vigorous

his recent State of the Union Mes¬

that the 1960 budget, in spite
steel strike, is still in bal¬
ance. - Far
more
important, the'

sage
oi

tne

President

disclosed

the

1961

in

bal¬

be

a

surplus

of

The

for

case

balanced

any

continue in¬

beyond its in¬
and still be able to fight ef¬

come

fectively
which

r

to

States cannot

United

and

directly

live

to

the

we

challenges
both military

external

fape on

economic fronts.

A balanced budget is an impor¬

tant
-

.

and

/

an

-

understandable

Continued

on

circumstances to be construed

as

of these

in¬

type

in

our

of

regained.

-danger

'

INCORPORATED

$2,000,000

6% Convertible Subordinated Debentures
Due March

of. losing
freedoms

The Debentures will be in coupon

drift toward socialism.

a

1, 1975

form, and will initially, be convertible
$11.69 per share.

into Common Stock at
Bears

International

the

on

Front

Price

up

100% plus accrued interest

100,000 Shares
Common Stock

.

cisions.

I, for one, am happy the
•'responsibility rests where it does.

out;

President also pointed

The

Price $10,625 per

; v This, then is our first major task •in his State of the Union Message
—national security. The second is that "Inflation's ravages do not

share

'

closely linked with it that one end at the water's edge." He was
can
hardly speak of the two as referring
to
our
international
"balance
of
separable issues.
/
*
payments
position,
so

year

:"

•

This

second

problem—and* the
with which I am mainly eon-

<

one

<

t

cerned today—is the maintenance
of financial

policies,

or, more par¬

Without

such

policies

we

cannot

have sustainable economic

growth

domestic

the

on

front

make

nor

contribution to the
economic progress and stability of
our

proper

the free world.

•

■

.

■

of

our-balance
the

if

reserve

This

deficit
of

finance

need

not

be told

element of confidence is

tial

ters,

ingredient

and

that

that
an

the

essen¬

in

financial

is

particularly

mat¬
so

where the value of money is con¬

cerned.

'The
to

me

of

the

1950s

seem

to be very clear, and these

lessons point to the Drimary

chal¬

lenge of the 1960s. Stated simply:




t

,

-

..

I *

♦

(

i

.

McDonnell & Co.

heavy

many

'

*

1

9,

Clark, Landstreet & Kirkpatrick, Inc,
Baker, Simonds & Co., Inc,

Prescott, Shepard & Co., Inc.

Saunders, Stiver & Co,

Clement A. Evans & Company

international

bal¬

situation is a
phenomenon to us.

decades

Arthurs, Lestrange & Co.

continuing

payments
new

Shearson, Hammill & Co.
•

Incorporated

*

major

'

and

our

& Co.

until this last

have enjoyed a generally
favorable balance of international

Incorporated

Herbert W. Schaefer & Co.
Courts & Co.

Abroms & Co., Inc.

First Southeastern Company

Boenning & Co0

Fusz-Schmelzle & Co., Inc0

one, we

payments. Then, largely aS
suit of
became

lessons

-

and

function

; to

world's

currency.

in.

payments

is

the

as

relatively
For

of

dollar

-

properly

r

experienced in the field of

i

Van Alstyne, Noel

.

ance

-Men

-

$3% billion in,1958.and approach-

ing
$4
billion' in
1959.-, Large
and deficits cannot be sustained safely
management, policies,
that "for a long period of time if we.
will contribute to preserving the are to have a
satisfactory pattern
power of our currency.

compliance with the securities laws of the respective States.

tion of 1957. Recently the deficits
have risen to a high level—about

debt

purchasing

in

1949, with the excep-

since

fiscal,; monetary,-

ticularly,

ties

be obta:ned from the undersigned only
undersign*. may legally offer these securi¬

may

hose States in which -the

deficit in each

which has been in
Our Foremost Economic Need

Copies of the Prospectus
in

wars,
for

a

favorable—the

goods

and

abroad

led

industrial

a

re-"

Hanrahan & Co., Inc.

export position

our

time

of

both

financial. reservesproperly to help

us

nations

;

extremely

shortages

rebuild

their

Rodman & Renshaw

March

17, 1960

Willis, Kenny & Ayres, Inc.

budget

the people
Of this country. I believe they are
now
coming to realize that the
taken

was

the

these

buy

no

of

$4.2 billion, the largest surplus of
his Administration.

non.

in Federal
By finan¬

that

only

indicates

but

ance,

not

will

budget

securities for sale or a solicitation of an offer to
of such securities. The offering is made only by the Prospectus.

offering

an

it.

observers that

it couldn't be done—the President

irieh

economic

in

be

mon¬

As for the budget—although

.

maintain fi¬

responsibility

Government

the dollar.

of many other
anything,
we

means

the

inflation; and debt

management actions

definitely

'

The
battle against inflation will surely

again come back to

we

the stability of

self-in¬

evidence

see

in

there is a

payments deficits.

still
loss of

But

different

example

of

some

of military de¬

adding

money

tip

that the President could report in

progress

appropriate steps to try to reduce

/

of: enlightened

on

In the last

'

The.

affairs

analysis, pqblic opin¬
ion will tip the scales: It seems to

1

Let
me
take
up
the
inter¬
all of -the
national aspect of this problem
'separate programs t h at sincere
then
turn
to the
"and dedicated military technicians briefly -and
believe necessary in each of their domestic side. Whether we happen
to like it or not, this nation finds
respective fields. A small group—
and finally one man—has to strike .itself a leader of the free world—
economically,
financially,: f railra balance and make the tough de¬

fense

to

prolonged erosion of
— which
is another
for serious or prolonged in-,

nations

not minimize the dan¬

program

a

value

one
a

it would not make sense to formu¬

late

of the

world.

free

ized; they deeply injure the moral
fiber of the nation. Worst of all,

prospect

face. On the other hand,

we

scales toward

the

allowed

or

would

I would
gers

for most

and financial

basis

the

best, "the damage can be re¬
paired only at the cost of a pro¬
gram of austerity. The hardships
and inequities which result from
inflation cannot be-readily equal¬

powers.
•

not

and

At

that these
atomic playthings may fall into
•the
hands
of
other
aggressive
face

is

flation—are

have

we

supply is

monetary
excessive ex¬

that

credit

currency

term

de¬

method

disarmament

year,

.bound

are

activity;

so

pansion in

entirely. The social and

serious

know in the world. And unless we'

to

of the

instances, we
in policy-

shore.

not

It

business

discipline,

economic losses sustained through

--our-country

(can

some

the
.

is

States

in "the

is

dollar

plex job. It is an uncomfortable
thought that a wrong course of
action,
a
miscalculation
or
an
error
on
the part of a single- in¬

controlled

of

.reserves

mistakes —and

to

confidence

stances.

a

terest.

crease

industry that has

many

costly

even

believe we

that the cold war,
in one form cr another, may be
with us for a long time.
V A correct foreign policy and an
must recognize

of inflation

causes

economic

at

billion

mistakes

afford

can

dollars

be

to

so

United

country.

cial responsibility I
mean
three
things: a surplus in the Federal
budget during periods of prosper¬

industry.

savings

The

international tension. We can-ex¬
pect that the situation as we have

find

the

and dollars.

half-trillion

a

bank is operated.

greater stake in the maintenance
of confidence in the dollar than

problems. The first is, of
course, our national security.- We
are
-living in a period of great

known it since World

by

complex economy, produc¬
goods and services at a rate

me

a

major

vary

so

* * '

know of no

I

•

Only

1

J

Domestic Aspects "

a

ing
of

.that; imperils,

fire

a

home.

of
our hopes and
ambitions
for
so

worked

State

abroad

our
objective of promoting an expand¬
doing can we ing volume of world-trade. But
prevent -it from destroying * our it should be readily apparent that
salaries, savings,-/ pensions, and a basic factor.. In our payments
insurance, ' and
from: gnawing deficits is the cost-price structure
away
the", very roots* ofa free, in this country. Our ability to ex¬
healthy economy and thte nation's pand our exports will be impaired
security:"; *'
'
VO "
" if this structure is not competi¬

achievement
of

his

in

Message:*

do¬

ous

In

It..is our resolve that these steps
"We must fight1 inflation as we "continue to be
consistent with our

'

tions

to

hower- said

so¬

lution of most
other

dollar,

the

•

•

Discusses the

that foreigners now
have an important stake in how
we
manage
our
affairs, just as
depositors have, a stake in how a

/ This

internationally, may be
us.
As President Eisen¬

well

as

present

time.

markedly strengthen our efforts to

hard for in our domestic economy,-

in

dimension

not
..

value of
we
have

$17

currencies

into

danger as we turn the corner
the
new
decade.
If we do

protect the
much that

they

the

inflation

problem

present.
holdings, therefore, supple¬
gold ^as the
basic inter¬

national

primary economic

Inflation is our

at

the

—

entirely removed and explains to what extent 1he House

be

gold

look

of

we

accumulating surpluses in the
of

aspects

complex; thus there is no
cure to the inflation prob¬
has
become the
world's leading
lem. Moreover, the task of con¬
banker
and
like the typical
banker, we have lent long. and trolling inflation does not start
borrowed short. Short-term claims and stop on the banks of the Po¬
on
us
held by foreign countries, tomac; -individuals in every walk
largely
deposits
in banks
and of life, institutions of, all kinds,
Treasury bills, have built up from labor, management — each and
under $7 billion at the end of the every one of us must handle his

and flexible

pegged-interest rate and those favoring sound money
interest rates. The Treasury

countries

let's

now

simple

the fight

be

since

long

JSince World War II our nation

important economic problem is shown

against inflation. Mr. Baird depicts the issue as a
renewal of the old conflict between those favoring soft-money and

to

has

our

industrial

the
are

financing, he says, should be

Moreover, the cost of interim

on.

And

mestic

thinking to the
changed conditions, under which

Undersecretary submits there will be more mortgage credit

lower than otherwise. Our most

gap"

adjust

form

4'/4% ceiling on

Marshall'

the

eliminated/'" Therefore,

been

must

By Hon. Julian B. Baird,* Undersecretary of the Treasury

with the removal of the

through

Plan and ether measures. But now

7

Joseph Walker & Sons

sym-

page

24

8

(1176)

The Commercial and Financial Chronicle

DEALER-BROKER

Avenue,

South, New York
16, Federal Paper Board Companyr —
Y.—$3,00 (ten. day free ex-: Bulletin—Bertrand W. Hall &Ca,
amination),
•, ":
! 52 Broadway, New York 4, N. Y.
_

'

UNDERSTOOD

TO

SEND

THAT

INTERESTED

THE FIRMS

PARTIES

MENTIONED

THE

WILL

FOLLOWING

BE

S.

Wickett

Business

of

son

21

Bissell

leading stocks—Laird,
Meeds, 120 Broadway,

&

New York 5, N. Y.

Burnham
ment

LITERATURE:

Aldens,

View—Monthly Invest-

15 Broad Street, New York
5, N. Y. Also available in current

pany,

_

^ly a^stoeSSLS-ln

SiTm
York

6,

N.

circular

same

Ford

and

ftroadway]
Also

Y.
.

in
in

the

discussions

are

American

of

Telephone

p.

&

Telegraph Co.

Shares

with
^

position

and

Common

advantageous

to

Wills, Bickle
&
Co.,
Ltd., 44 King St., West, Toronto,
Ont., Canada.
Oil

—

4>N-Y.
Electric
of

11

Utility

stocks

Stocks discussion

with

above

average

yield—Goodbody & Co., 2 BroadNew

way,

York

available

are

&

Zenith

Ohio,

Mathieson,
York

4,

data

N.

on

Y.

&

Co.

St.

&

Also

Chesapeake

Radio

Olin

and

memoranda

Chicago

Merck

New

on

Louis

and

and

comparison of the

an
earnings
big four Rubber-

Companies.
Electronic Semi-Conductor Stocks
Analvsis
Hemnhill
&

5,

Nove^

i

Co.,

c

r>

15

N.

j

Broad

Y.

Also

American

on

the

in

of

4.

at

xr

i_

Street, New York
available

data

are

Telephone

&

Tele-

the

investors

geles

14,

Co., Ill
N.

Pex

—

Corp.,

tronics
ments,
Texas

Amphenol Borg ElecCorp.,
Beckman
Instru-

Litton
Industries,
Inc.,
Instruments, and
Varian

Associates
non

2

—

Thomson

Broadway,

&

New

Ctmadaf

for
&

EXCha"ge'

^unds

Mutua.

ft the Life InsurAgentAgent—Study by Herbert L.
Rackliff—First Maine
Corp., 84
ct

Exchange

-

Portland,

available

Maine
iTid.uie

Odd

St.,

.

is

Insurance
insurance

Government

Security

Maine.

analysis

an

of

Co
co.

^Investor

Exchange"-Exchange Magazine,
11

Wall

Also

in

Analysis-Aubrey

$1.50 per year.

copy,

the

^

^

issue

same

Investment

on

-

--

G.

Lanston

&

—

Over-the-Counter Index

showing

an

—

up-to-date

an

between

son

stocks

Averages
counter

the

the

used

Suggestions—Bulletin
Penington, Colket & Co., 70
Pine St., New York
5, N. Y.
Stocks

Current

Infor-

ComSLv7f NaewalYork fnc
Company of New York, Inc.,

ni
Ill

Franklin

Furniture.

and
.

Folder

the

the

industrial

National

industrial

Dow-Jones

,

35

over-the-

stocks

in

used

Quotation

Bureau

Averages, both as to yield and
market performance over a 20year Period — National Quotation
Rnrpau.
Tno.
Bureau, Inc., 4fi Front strppt
46
Front
Street,
^ew York 4, N. Y.
Paper

Industry

Union

with

particular

to

Kimberly
Clark,
Camp and West Vir-

Bag
Pulp

&

Paper—Memoran-

dum—Eastman Dillon,

Union Se-

curitie_s & Co., 15 Broad St., New
York 5, N. Y.
Petroleum Situation

Chase
leum

Manhattan

Review

—

Bank

York

Bank,

Petro-

15, N. Y.
'
*

Research

^

,

N

[

Y

~

'

v

,

f"l information for

,

,

.

general Time- Data
lime —; JJdid

H>

Co.,- 61

use-

City Bank of

New

York, Public Relations Department, 55 Wall St., New York 15,
;
Put

&

Call

p'u-T Herbert F"er
Dept.

.

Op-

~ Crown
A-7, 419 Park

•

1.

=ca„ Su^Eef^g C„ a
on Large E.eetric Power & Lght

Review

Mellott, Pitney, Rowan & Co.,
atVnrir

&
01

r>„^„ j„,TO,r

James

—

Richardson

is

review

a

&

Grace

-

Cassiar

& :Co.

/

Review

—

Benne.L

&

,

Also
data

Annual

.j

Co

ice

P

x

^

sis—Binday,
York

—AnXs^Ha^ris U^

.

&

New

Co.—Review—Fahne-

Co.,

65

of

review

-British

ABC

Columbia

*a

Singer & Co., 74
Trinity Place, New York 6, N. Y.

of

America.

CIE

and
V

Financiere

Potash

1500

de

Inc

is

6,"N.

?

d

Y.i::at

an

Co

analysis

50

Y

Coffee

^

VInc

Ub'Ohio
15, Ohio.

Aviation

of r

rt

Corp.
&

Steel

"

Corp.

view of high yield

anal-

an

and

a

re-

Raifroad equi-

ties.
Named Directors

"

Daniel Cowin and Louis Hubshman, Jr.,. have been -elected di-

of

National t ,Equipmerit
was ann?unced by

Btd*» jt

,,

Witt

'120
120
N. Y.

Co., which rlcently underwrote a
$2,500,000
^>56U,U00 issue of debentures,
iss
warrants,

and

common

the coir
the company
holders.

and

stock

certain

for

stock-

on

^

york

5,

N.

Y.

"

cSt'sO^Broadway^New

N.

& Meeds,

Y.

"

-

'

1
" become
1 '
'
'
J
have '
partners in Diamond,
Turk &

Mar.sh F(>°dhners,
1™L,"
randum

5
5, n V
N. Y.

Circle

4

Company, 120 Broadway,
City, members of the

York

American Stock

Exchange.

_

Inc.
MemoSecurities Corp.,

Primary Markets In

—

e

—City

Equip-

York

New

"

v

Tower, Indianapolis

4

Baird Atomics

Ind

—

„

Corporation

&

Sons

^
Co.

.

2

New

York

Econ-O-Veyor*
Oakiand Consolidated

4

.

American

.

Corp.

—

Re-,

Mitchell, Jr. & Co.,
Securities Building, Washington 5,
D

—

XT

-

Extrudo Film;

Street,

^a<Jonal Acceptance

Eichler & Co.,
453 South
Spring St., Los Angeles
13, Calif. "
^

Broad

XT

Analysis—Bateman,

.

.

N. Y.

report—Detroit Steel Cor-

Donnelley

.

Company —
Analysis—Cohen, Simonson & Co.,

37th

—

...

Meredith Publishing

N'« Y

'

R.

Celanese

tip„

Mangel Stores Corp.—Analysis

poration, R, A. Yoder, V.-P., Finance, Box 4308, Detroit 9, Mich.
R.

Southern

on

"W

urn^

25

Detroit

bulletin

a

Central, Pittsburgh
Erie,
and
Peoria, &

Diamond, Turk Partners
Lerner Stores Corp. Analysis—
Schweickart & Co., 29 Broadway, Paul Asnes and Leonard Turk
T

Study — Simmons,
Co., Inc., 56 Beaver St.,
4

.

rt

available is

Lake

ysis of

"

„T

is
available is a bulletin
of
TM
Eastern Industries Inc.

Hann^BMe

&

Also

Baltimore Gas & Electric,

_

T>

A

+-

ay' ??ew. York 5,

A^oa

Also

Brosdwav

Radio

New York

Edison, New England
Ga§ & Electric> ininois Power and

Y 1
'

n

.

Co.

Co.

N

-

California

S?" jin Organization, Inc.,
°rgamzaLon Inc.

Crown Cork and Seal
Company-

annual

York%•

—

&

Eastern" and'"data

of

~

Y.

&

.

and

f-abf

Co.

St, New York 5,

the

-

-Re-

^etber" new directors^re'w^di^hednvest70™pfne^ ment" banking firm of Burnham &

Corn

'

,New

Cook

Los Aneeles 14

Overseas

^

Co.-

Sherrerd,
Philadelphia 3,

St.,
'

on

Chemical

New

Products

Butcher

—

N.

—

Koehrmg Co.—Bulletin—De
Conklin

-

.

in

reviews

Corp.

rj

'

4 , N.

Alg()

Suez—Analy^:

York

n

Walnut

Works—Analy-" Lec^?r,s
!Usis—Pierson, Heldring & Pierson, -Penta1'

*

&

New York

y
are

Broadcasting

available

Textron '

N

B,ederman Furniture Co.

s's—Bacon, Stevenson & Co, 39
Broadway," New

'V

;

.

Rpvipw

White Stores—Analysis—H. Hentz
wniie aiores—Analysis—n. neniz
& CO.. 72 Wall

&|

r, >'

of America
Vending Corp.

Co. ^Ketjen
-

.

•

i

./?'

•

Standard
*

C.

..

n,

XT

.

.

Int'l

Bowling

Manufacturing

Offering circular

on

request

_

Vulcanized ..Fibre—Data
—Peter P. McDermott & Co., 42
Broadway New York 4, N..Y. Also

Corp.Report — - in the" same circular'are
data on
Boenning & Co., 1529 Walnut St./ Seaboard
Finance' Co^ and United
Philadelphia 2, Pa.
^
; •. Merchants &

.Manufacturers

PLYMOUTH SECURITIES "i
•

82

CORPORATION
LIBERTY

Dlflby 9-2910

STREET

Inc

■»

—
'

«,
4

•

*

N.Y, 6, N.Y.

"

Teletype N.Y. 1-4530 *.

•

i

'

^ S W
broad. ;btreet'-

Oil

4

Pn
Pa.

New

^ venin
"r
Angeles 14, L-alit.
avaBable is an analysis of

memoranda oh

aTe

Corp.

5>

Seven,h St

'

^

.

St.;

4, N. v
Y.

Analysis

Aircraft
Analysis
Dempsey-Tegeler & Co 2i0 West

•

dum—Troster,

Chemirad

••

:

Kaman
:

Memoran-

—

St.,

Op-

m

.

Collins

Beaver

circular

Vandium

is

Power Corp, Ltd.
Cary Oiemieals Inc.

Also available

York

same

Broadway,^New

6, N. Y. Also available

4, N.

Riemer,
44
Y.

Vv

\

"

—

p0rt__Hill, Darlington • & Co.,, 40
wan
c+
Wall St., npw York fi
New York 5, N Y!.* V
N. Yh

Jones & Laughlin—Review-Van
Alstyne, Noel & Co., 52 Wall St.,

SoaLfS

120 iJroaaway, New York ON. Y
lzu
N
York 5
Y.

stock

Inc.,

4, N. Y.

Universal

/in

N.
™

james,

-

.

New York

Teletype NY 1-376; 377; 378

'

are

Broad

PiActH/lnn

<5«i

vnrnr ^

Chemical

u

Co.," 25

S^vnrl
New York

Y.

•

5,

&

York

T.mir

Co.—Analysis
n
wU'iT?+naiTS15
Cc
Co., 40 Wall St., New

n

the same circular
Baird Atomic*j-'.

Wellington ".Management

—Parrish &
Parrish

B^n^?ial Pb?.an?e p°-»
Building, Wilmington,

ment

York 6, N. Y.

New

'

Harshaw

in
on

penheimer

....

^eP°rt.

7"
Beneficial

Rubin

Trinity Place, New

.

.

Tuboscope —Memorandum

7® Pine

d

_

Members New York
Security Dealers Association

'

Transitron—Data—Shields.& iCo.i
44 Wall SU New York 5, N. Y.

—

Brbad St., New York

Asbestos

Beneficial Finance Co.

Dayton

& CO.

29

\r

,

Paine

Ltd.

120
-120 Broadwav. Npw York
Broadway, New York

Sold

at

■7!V'/'//77'!

120

York

of

Corporation

Analysis—Laird, Bissell
!■

ft

TXL Oil — Memorandum—Persh4
irig & Co., 120 Broadway, New
York 5, N. Y. : \ J / :
v

Joseph* Walker

W..R.

Sons, Inc., 14 Wall St., New York
5, N. Y. Also in the same brochure

MiTrch^&

Baird-Atomic Inc.

review of the Cana¬

a

picture and

—

Cooley
uuoiey

-

-

Also

only

Gas

0^09

Webberi Jackson & Curtis>
4, N. Y.
- v'
^"-m
*
Vi T-'• Also available are data on Com^er*can. ^ter^Works^ulletin, mercial Credit Co., Illinois Power
~Bfctie
^
,
Wal1 7^^ Co., White Motor, Bigelow SanYorK
J7*. :Y;TAlso .aYaliablf
ford Carpet, Mueller Brass and
an analysis of Imperial Oil Ltd. American Insurance Co.
Armstrong Rubber Co.-Analysis
Grand Union
Company—Analysis
—The .Milwaukee Co., 207 East
_Gude,' Winmill &\Co.;' l Wall
Michigan St., Milwaukee 2, Wis.
street, New York 5/ N. Y. Also available is a review of McNeil Machine & Engineering Co. Great Universal Stores
MemoA«hp«tn«
rnmuMfinn
i.imitpa
randum
Merrill Lynch, Pierce,
Asbestos
Corporation Limited

Cleveland

TROSTER, SINGER

F.

an analysis
wn
of International Nickel Company
3932 -Wilf Canada Limited
: ^
'
Aneeles 5,
.
Angeles 5. 01 ^anaua wmiieu.
*
Salem Brosius, Inc. — Bulletin

Sons,
Broadway, New York 5, N. Y.

K/3 „Don"el,ey & ®?nsl.Co"
factor buppiji^ Co r Northern
"
^
~

Gruntal

Farrington Manufacturing

*

2

T

Annual report - Southern Califorma Edison Co., A. L. JDhavanues, Secretary, P. O. Box 351, Los
Angeles, 53# Calif;' -

—

Colgate-Palmolive—Memorandum

.

p.

•

Giannini Controls Corp.—Analysis

-

*

of

travelers,

N. Y.

.

i

C

Co.,

N. Y.

a*
'
Analysis—L.

a^e data
on
American
Laundry
Machinery, vDejur Amsco Corp.,
Cincinnati Milling Machine and
Singer Manufacturing. "7

Broadway,

New York 6, N.' Y.

„

ina time conversion chart—

Publishers.

&

/

AmeriearTSl^^^Tel^ripK;:^^'^

a
„

Understanding

Di

Reading—Bulletin

Samuel

%

Companies,

,

;

3,

dian

~

'

•

Travelers'Friend-Booklet
eluding

and

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

Co.,

&

w

Blaw Knox

d
'

E.

R^ychein

New

of

Chicago

Research & Develop- S ?S I"dusTt ies\ C
Develop-, California investors,
ment
Corp.—Analysis—W. E. Hut-, ^ire Rnnlevard Los
shire Boulevard, Los
irl '
iShire B'
tu" a
1 * vva11 ou, New xulk.
'°".AC?V l4 w?,11.?t-. incw Y°rk.:; Calif, <
calif.
7 ' 7V
-v
5'N'Y'Als0 available is an analy- Geherai
urni.oo/.n
.

XT




Ralph
-Ka'Pn

&

Inc.

A

—

Department, 18 Pine Street,

New

For financial institutions

HAnover 2-2400

Philadelphia &

Associates,

SI

System,
Inc.—Analysis—Blair & Co., Inc.,
20 Broad St., New York
5, N. Y.

74

&

National

avaitahle a. data

Aerojet-Genera. Corp. and Mead
American Machine ? SS&l*,
& Metals

Columbia

Bought

Heeartv

ReCtor Street, New York

York—Analysis—Hallowell, Sulzberger, Jenks Kirkland & Co.,
Philadelphia National Bank Bldg.,
Philadelphia 7, Pa.

ar-

.

Japanese

S

i9

are data

Co.

.

and

compari-

listed

in

and

N. Y.

,

Carbon

Chemical Arts.

Noc

Inc.—Bulletin—

w

First National

Investment

M
i

United

6, N. Y.

^

is

Clubs

ing Co., Jonathan Logan, Inc.
Transitron Electronic Corp.

New'York 4

Co., Inc., 20 Broad St, New York
5, N. Y.

r>

American Viscose Corp.—^Report
Carl M. Loeb, Rhoades & Co.,
brief descriptions of Central
Soya 42 Wall St.; New York 5, N. Y.
Co.,
Great
Western
FinancialV Als0 in the same circular are data
Corp., Gustin Bacon Manufactur- 2,"
tide

.

on

inC

st-> New York 5, N. Y, Also avail^ ?.are memoranda on E. J. Korvette and

01iphant,t&

St. New York 5 N.- Y
St., New
5, N. Y.<
per

w

'

.7

Also in the same circular

Co., 45 Montgomery St.,
Francisco 6, Calif.

Foremost Dairies

•_

4,

Market-—

Haupt
'

Rowe

\.

Co.—Review—Dean

Motor

San

Allied Chemical—Memorandum—

Y.

Ford

witter &

*

„f,
sis of Mohasco Industries, Inc.

McKin-

York

Discus-

stocks

ance

ginia

Industry
Survey
particular reference to Am-

Corp.

'

MtTSX f'
Montreal,

lette Safety Razor, Rexall
Drug &
Chemical and Warner &

Electronics

_

Broadway, New York

Y.

—

R. J.' Reynolds Tobacco Company
American Pipe & Construction Co.
—Analysis—Reynolds & Co
120
—Analysis—Hayden, Stone & Co.,. Frantz Manufacturing Company— Broadway,
York 5, N. Y.
Exchamre-Cana-' 5657 Wilshire Blvd., Los Angeles Analysis—A. C. Allyn & Co., 122 Also available is an analysis of

Stock

reference

with

New

portfolio—Sutro

Calif.

Montreal

Corporation of the

Analysis — William R.
»
V ':
Staats & Co., 640 South Spring .Packard Bell EI®®*ron,cs 'Corp.—.
St., Los Angeles 14, Calif..
Report—A. M. Kidder & Co., Inc.,

Co., Van Nuys Building, Los An-

graph, Avnet Electronics Corporation, Georgia Pacific Corp., Gil-

Swasey.

7,

Portfolio

fnsura^e

hfe

20 cents

Shares—Analysis of
Auchincloss, Parker &
Redpath, 2 Broadway, New York
outlook

"Life"

—

Domestic

York

West

Francis I. du Pont & Co., 1 Wall

Also

Canadian Preferred

New

Re-

Co.—Analysis
Co., Inc., 99

Inc.—Review—Ira

&

York.
ston

Letter—Burnham and Com-

New

Broadway,

Impulse

&

Machines

6.

compari-

&

Wall St., New York 5, N. Y. Also
available is a study of Mohawk

PLEASED

■

Stocks—Earnings

*

Electronic

cording Equipment
—V.

—

Bank

Pacific Finance Corporation—An-/
nual report—Pacific Finance Cor62
South Hope Street,
Los Angeles 17 Calif, or l$t Broad

.

*

First Financial
First

Alden

AND RECOMMENDATIONS
IS

Thursday, March 17, 1960

.

N.

INVESTMENT LITERATURE

IT

...

■, VV -

Volume

191

Number 5934

.

.

The Commercial and Financial Chronicle

.

(1177)

the last business recovery in

Are We Headed for

Major

a

Business Downturn Now?
Bill

of particulars

generally suspected and is

holds economy is in
now

Cited

the

are

actual

performance
a

of

leading

numerous

taunt

As

business

a

indicators

recovery-springboard

of

recession

forecasting

is

due

"1

e

the

is

i

d

a

started?

business

reliable

methods

buy

most

when
of

use

n

recession

a

the so-called

g

—

com¬

"1

d i

a

g"

n

economic'

in¬

future

den

always

ominous

sign

possible

after

move

of

the

dive.

nose

business cycle

rather

that

industrial

have

to

proven

the

in

be

the

over

in

years

fore

in

cycle.

the

Robert S. Nattell

leading

and

indicators

down many

before
These

so-called

months
production.

industrial
of

cators

always

the

advanced

business

forewarned

indi¬

cycle have

of

coming
business
recession
even
though
perhaps one or two of them might
temporarily
give
a
confusing
signal.
'

very

pointed

to

a

Day slump
Recently raw
their peak

boom.

saw

1959

of

summer

then

and

in the past two months

raw

prices have been in a
sharp decline with such sensitive

a

going

copper

steel

as

into a
opinion,

This, in
sign that

my

the

stages

we

frist

is another
possibly be in
of another busi¬

may

recession.

ness

other

and
nose-dive.

scrap

There

are

many

leading

indicators such as
industrial stock prices, commer¬
cial and industrial building, new
incorporations, paper board or¬
ders, oak flooring, backlogs of

important of business and other various eco¬
indicators is new nomic ratios that all of which
received by businessmen. have great forecasting value.

One

of

these

a

Labor

prices

commodities

These
up

it

as

was

industrial

business
turn

the

ness,

casting

turns

than

This

held fairly steady. Unfortunately
for the future prospects of busi¬

most

reliable

first

m(ust

Any sharp
weakening in raw industrial prices
is always a sign of a slowdown

dicators that

ahead

it

materials.

manufacturing plans.
instance, in the summer of
1957, when everyone was so opti¬
mistic and looking for an after
Labor Day
upsurge
in business,
raw industrial prices took a sud¬

many

e

the

most

leading

orders

Future production depends on the
rate

of

orders

nevy

coming-in.

Recovery May Be Now

these indicators do

few months.

and

As

have

rising
urally

long

large

business¬

as

amounts

of

orders, they will nat¬
continue to increase pro¬

new

duction.

Unfortunately
at
the
present time the5 total number of
orders

new

ures, even after
the steel strike,
In

the

last

business

had turned down.
down

recession,
about

nine

orders, so from that standpoint,
present lagging action of new
ominous.

the

orders is very

reliable

very

is

residential

has

first

economic

always been

down before

leading
building.
of

one

indicators

to

downturn

a

the
turn

in busi¬

The peak of residential con¬
struction
occurred
in
late
1958

ness.

then

and

turned

has become

down

and

now

quite weak.

Total liabilities of business fail¬

usually start to rise rapidly

ures

as

failures increase under

strain

a

money

the top of a
cycle.
increase in failures is
often a danger sign of a weaken¬
ing financial structure. Total lia¬

bilities

have

up

failures have

total

failures

for the past year
and in the past few weeks

so

or

business

of

edging

taken

sharp

a

rise.

hours worked

average

per

week is another excellent business

indicator

is

time

is

because

before

there

unemployment layoffs,

any

the

first

work

reduced

week

is

over¬

and

shortened.

then
That

if average hours worked
week in industry starts to
shorten or stops increasing, it is
almost always a sign of the re¬
why

per

getting tired and possible
layoffs later. The peak of aver¬
age hours worked occurred in the
covery

summer

of

1959

sharply.

down

and then

Right

turned

after

the

settlement of the steel strike there
was

and

a

came

strong recovery but it never
back to its old peak and now

average
appear

hours worked per week
to be weakening.,
,

Raw material

sitive

indicator

prices

are a

because




sen¬

before

can

orders,
declining.

backlogs
that the

more

ending

shorter

than

often

January came
to
just about

over-extended " level
were

in

in

-1956

then

were

it resulted in

in

time

the

Spending
which

now

rate
accumulation

time.

does

This

While
do

never

once

it

more

is

after, Labor

low,

so

this

dent managers.
.

Three

could

be

disturbs

particularly

this

is

time

DES MOINES, Iowa —Conway
Brothers, Equitable Building, have
the

announced

them

again, the
over-paid

association

of Norman V.

who will be

the

a

years

Mr. Conway

department.

also

while

business

previous

this

to

over-extended stock
An added
complication

situation
have

the

fact

fight

the

that

dollar
of

internationally

large

gold

Mutual

Moines.

service

against
in

Prior

and

not an

offer to sell

or a

We

solicitation of

an

Casualty
Mr.

three

with
this

to

Co.,

Kiess

has

years'

the
he

armed
was

offer to buy these securities.

offering is 7nade only by the Prospectus.

NEW ISSUE

March

Walnut Grove Products

17, 1960

Company, Inc

$3,000,000

in

Fifteen Year 6V2%

manufacturers had unfilled orders

equalling anywhere from four to
months

total

of

today
backlogs of

unfilled

orders

equal only three
shipments. The danger

months of

Dated

February 1, 1960

would

have

manufacturers

any

long

In

a

postwar

A Warrant

not

do

backlogs to live
time.

the

on

accompanying each $ 1,000 principal amount of Debentures exercisable
from and after the date'of issuance entitles the holder thereof to purchase 50

for

shares of Class A Common Stock
and at

period,

at $10.00
per share through March 1, 1964
increasing prices thereafter through March 1, 1970, the expiration date.

re¬

coveries in the business cycle have

usually

Payable each February 1 and August 1

be

immediately re¬
flected in cutbacks in production
because

lasted

three

about

Price 100%

y

years

(Plus accrued interest)

•

that

why most economists

feel

today

that the present re¬
and business boom is safe

covery

until

is

at

when

it

least

the

would

three

middle

then

years

be

old.

of
a

In

1961

little

the

300,000 Shares Class A Common Stock

postwar period after World War I,

however,

the

cycle in
business was much shorter, only
lasting around two years.
The
final recovery in business before
the great depression lasted from
only November 1927 to August
1929, less than two years.
It

Due February 1, 1975

'

Interest

here is that any downturn in new
orders

Sinking Fund,Debentures

with warrants

shipments,

manufacturers'

is

my

($2.00 Par Value)

recovery

Price $10.00 per

share

The Prospectus may be obtained in any state in which this announcement is circulated from such

of the Underwriters

as may

legally offer the securities in such State.

opinion that the out¬

break of the Korean War with its

accompanying
huge
defense
spending without. a doubt pro¬
longed
the
business
recovery
periods from June 1949 onward.
As
and
up

result

a

the

the

Korean

War

The First Trust Company
of

A. C. Allyn and Company

war
industry built
backlogs of orders that
limited capacity they could

quickly

fill.

This tended to
prolong recovery periods as they
attempted to whittle down back¬
logs. For instance at the peak of

Lincoln, Nebraska

Lee Higginson Corporation

Reynolds & Co.

Incorporated

Storz-Wachob-Bender Co.

T. C. Henderson & Co., Inc.

cold

huge

due to
not

of

Cruttenden, Podesta & Co.

John C. Legg & Company

Lester, Ryons & Co.
Westheimer &

Company

Manfred

of
Des
recently
overseas
forces.

graduated
from Iowa State University, ma¬
joring in business administration.

the

outflows.

Dental

completed

recession

pressure

Co., after three
in that company's time study

sales representatives. In the past
Mr. Dental was with Employers

international

coming

strong

Firestone

Rubber

&

Robert

payments problem so
easing of money rates

would find
the

is
an

to the firm from

Kiess have also joined the firm as

of

any

form

Tire

an

now

that

The

recoveries

with

Conway, Jr.,-„

sales representative

organization.

capacity structure to correct

me

that

Add

Sales Staff

to

Day.

downturn

a

time

Mr.

office, Dominion Bank
Building, of which they are resi¬

in

balance

have

C.

Elliot

Toronto

said

we

D.

Fraser and Mr. Gossage will make
their headquarters at the firm's

speculative bubble in

a

has

market.

capital

Edward

and

Laidlaw, Jr., to partnership.

occur

but

an

admit

Harris

due

are

What

and

will

1
B.

and

slow

announcement

us

Fraser, Brookes F. Gassage, Wil¬
liam

rapid.

very

too

might

York

April

comes

recession

a

more

have

Co., 25 Broad Street,
City, members of the
Stock
Exchange, on

like

is that

mean

into

until

business

six

New

&

York

on the basis of
earnings
yields.
The danger in the
coming recession is that not only
do you have an over-built credit

goods

not

New

and

with de¬

Unfortunately

Laidlaw

can

falter¬

for stocks

the

to

spending

is far

advocates of the

would

Conway Brothers

public

we

goods

the

■,

would

capital

of

opposite

we

could possibly offset
major depressing com^
of
the
gross
private

in

slow

heightening of the
this respect actually

In

have built

that

surge

to

nothing

stock market.

domestic investment would be

'60s"

To Admit Partners

inventory

great added danger in the
present situation is that on top of
our long reconstruction
boom, we

thing

ponents

than the

A

new construction and with

these

the

dollar

Laidlaw & Co.

of
the
coming
summit
meeting which would come as a
depressive influence on the econ¬
omy just atJ the most vulnerable

Government spending negative or
at best a neutral factor, the only
all

time
rescue

the

must

on

the

believe.

result

inventory

reverse,

run

a

save

the danger of the re¬
turning into a depression.

"soaring

any kind of disarmament or
lessening of tensions as the

the

surplus, is

rapid

when
started

any

At

to

de¬

coming

risk

serious

are

barom¬

goods

period.

factor,

which

then

and

clining

of

a

very

with

Government

run

negative

present
down

the

war.

the

they

than

so

postwar

by

will

another

more

the

cold

in

than in the first part of 1957.
New
construction
has
turned

sharply,

and

try

with

or

the

The present situation

economy except perhaps an
outbreak of a Korea type
war, or
a sudden great

starting.
Today inventories
are
just as excessive and are mount¬
ing at an even more rapid pace

down

leading

faced

fight

risk

and

or

cession

ing

excessive that

so

This
to

come

business recession

a

i

down.

May of 1957. At that time

inventories

capital

build-up

:

that

of

back

$53.2
billion
equalled
the

which

bottom,

rules out any capital
goods spend¬
ing boom that saved the economy

backlogs of orders and the
great over-capacity in industry.

inventories

dollar

especially

cutting tools which

sensitive

Either

recession

spending
have
actually turned
down and show no
vigor. Excess
capacity throughout all industry

to

Other Negative Factors

orders

be

intensions

smaller

Manufacturer's

new

a

therefore,

flation.

nearly two

recession

a

eter

goods

due

after

the
tool

for metal

a

in
believe

others

time

Machine

is now
is
much

and

the

this
from

at

was

capital goods spending still lags.

present recovery

perhaps

recession

years

resulting
We

the

peak,

spending
of
large
and

might,

the problem of devaluation

the summer of 1957
sharp business down¬

to the factor that
backlogs of manufacturer's

orders

at

look good

not

turn out

has

spending.
of

possibly not become too

obvious

in

most

suspiciously

going

are

total

of

large

at the peak of the recovery

are

over

The

the

time

turn. What this could
we

near

Any sharp

been

they did in
before

However,

business

This

acting

are

the settlement of

months after the peak area of new

Another

present

that may

turned

indicator

the

At

its
peak
nine
in the latest fig¬

saw

months ago and

it

upward
Peak

Before production can be cutback,
new orders must
drop for quite a
men

it

covery

For

method. There
are

produces,

raw

in

_

indicator"

the

vigor. While in the previous

recovery, capital goods spending
within six months of the bottom

furthering of the boom. Now we
have reached the point where all
industry has excess capacity and
even now during the peak of re¬
than

One of the

of

capital goods
building
up
in
industry

capacity

pared to previous WWII postwar downturn periods.
Has

result

a

the

and

serious shape than

at its peak heading for a reces¬

sionary turn which may not become obvious until after Labor Day.
which, also, denote absence of

lion.

stimulate

more

a

much

backlogs of orders this tended to

By Robert S. Nattell

that

1957

backlogs of orders to business
equalled $61 billion. Today at a
much higher rate of production
backlogs are only around $50 bil¬

9

Boettcher and Company
Stern Brothers & Co.

"

10

eign exchange advanced, reaching
new
highs while sterling debts

Business Activity Situation;'
In Western Europe
By Irvin F. Westheimer, Westheimer & Company, Cincinnati, Ohio

markets

Stock

reduced.

were

On

the

side we may
conditions pre¬
vailing in the coal mining and
ship building industries.
mention

-

.

.

.

funds in New York,
and other places.

for short-term

Germany

West

October, following . the -con¬
landslide, the London

In

servative

bullish.

were

Financial Chronicle

Commercial and

The

(1178)

negative

the

poor

of its big¬

market had one

stock

gest one-day- advances and1 also
largest day's volume in history.

its

transcribes his

problems

nor

analysis of each country visited. He does not skip the
the encouraging and positive factors encountered in

each

—will
Geneva

example, that Italy remains the political weak link amongst the West¬
ern

European countries, that France has

than

it

handle, and that there

can

Western

be

long time before West¬
Europe again sees an eco¬

ern

a

nomic year as

good

is

desire

no

discredited
and

for

nalistic

-V The

return

a

of

the

pater¬
remains un¬

Sweden, Switzerland,
Austria and Portugal—as the eco¬

-

nomic interests

quiet

dictatorship
electoral

and

.

victory

writes Edwin.
L.

October

Jr.,

London

^

Cor¬

respondent

The New York

"Times,"
recent

of

in

change
years!

-

in

in

con¬

Irvin F. Westheimer
a

great part by

political factors, both internal and
external.

political

United

climate

the

Western

in

States,

Eu¬

rope has been better than in pre¬

ceding
basic

,;,t Although

years.

problems

has

still

been

the

Socialist

are

A

tendency

xather

clearly
many,

than

decline

of

leftwing
by
the

Communist

towards
to

the

factor

the

left

right

has

been

The

Social-Democrats

form

a
strong opposition in Par¬
liament but Adenauer, despite his

vigorous and respected
pleader, and Professor Ludwig Erhard, the architect of the German
"economic miracle" have the po¬
litical and economic situation well
in hand.

France,

the

Socialist

and

parties
have
been
liquidated. After about two years
in power DeGaulle has
emerged

with,
lem

a strong, vigorous govern¬
although the Algerian prob¬

is

far

from

being

solved

to

the

those

doc-

!•

politician, looking

right

the

mat

than

ment

the

to

support.

Communists

Socialists
are

than

more

for

Govern¬

doubtful.

by
the
insurrection
during the latter part of January.
President DeGaulle has sup¬
pressed the movement with firm¬

ability and rapidity and the

powers

accorded to the President

immediately

after

tion show the

fidence

the

insurrec¬

high degree of con¬
enjoys.
There

DeGaulle

with let

Those

traits

which

tries

appeal

of Western

to

all

but

of

1958

not

was

followed

by

only

(2)

Prices remained

ble, at least until late 1959 when
inflationary pressure became
stronger, a consequence of higher
food
prices resulting
from the
great summer drought and vigor¬
ous

economic

(3)

expansion.

During

the

first

inter-convertibility,
currencies

pean

of

strain

and

of
Euro¬

year

West

showed

sign

no

maintained

their

stability in relation to the dollar.
(4) Foreign trade
Trade
were

relations

S.

our

excellent.

the

characterized by

crease

U.

was

with

a

U.

country.

The

trade

with

surplus of the
balance
with

of

gold and for-

''t

This
to

announcement

is neither

buy these securities.

an

offer

to

sell

nor

a

March

;

LIFE

(Par Value

half

territory—$122 million
$42 million for the same
period of 1958. The share of the
against

ECM

six

countries

in

than

in

which

CO.

Prospectus

J. A. HOGLE

ments

foreign

private

-

invest¬

t

in

Belgium from $65
million; in?Holland
from $84 million to $225; million;
rose

million to $163
in

from

France

$527

million;

$227

in

million

to

West

Germany
from $204 million to.$574 million;
in Italy from $63 millionf to $264
million; in Luxembourg from $5
million to $7 million. At the end
of the second half of

1959

private

billion.

The

American

$1.9

petroleum

industry is the leading investor.
As

make

we

d'Horizon"

brief

a

"tour

twwl

side

the

other

to

industries, and the
shipbuilding

lack of orders in the

despite

the

fact

streamlined

new

that

may

a

67,000

ton
super-passenger liner "La France"
is

under

now

uled

construction, sched¬
trip to New

her maiden

for

York

in the fall of

As

the

of wages

upward trend

and

prices, moderate but steady,
becomes
stronger and stronger,
French economists, as do most of
their

other

European

colleagues,
following im¬
portant questions: Will increasing
inflationary pressure imperil the
have to

Government's
financial

of

resurgence

into

the

the

the

and

franc?

firm

Will

satisfy

industrial

needs

demands

finished

or

the

situation,

while

for

finished

partly

goods

may

export volume?

still

If

we

difficult

Algerian
that despite

we may say

excellence

optimism

of

1959

towards

and

the

Western

the

After
1959

has

and

been

economically

excellent.

Last

the

hectic

was

9%

industrial

production

1958.

over

During the
first half of 1959 British! exports
showed the substantial surplus of

£142,000,000 ($397 million) over
imports. There was every reason
believe

that

the

second

half

pay?

the.

Sterling

and

group

fears

that

remained
the

again.

economy

Among

1959

also

and
was

an

13%
very

months of 1959

American

less.

During

pound

was

most

of

Italy dropped from $407
(1958)
to
$278
million

to

plus

of

American

with
from

million. The
to

due

that

Italy

U.

shrinking is

S.

ground

also

the

to

Germany

example,

-

-

-

however, was less
though
far
from

-

rapidly

be legally distributed.

& CO.

.

'

.

•

'

pound

than

a

exports,

for

year

fell

favorable

causing
Imports rose

rela¬

1959

the

forward

industries

increase of 19%

in

in 1958. Business
good in the metal¬

lurgical

industries, with the ex¬
shipbuilding, the auto¬
mobile, typewriter and calculating
ception of

U.

the

first

al¬

was

and

last

time

in

the quotation of the

slightly

below

the

dollar

parity, while- on the same
day the Treasury announced that
gold reserves, had fallen in No¬
vember, for the first time in two
years. Experts, however, remained

undisturbed, feeling that the
for

the

ANNUAL

main

March

17,

1960,

the

of

imports

cotton

fell from
73% to
26%; of iron and steel scrap from
55% to 22%; of chemicals
from
29% to 23%, and so on. It
can
be said that American
trade with
raw

other

West

shows

a

One

interesting
fact
is
theliquidity of Italian banks

extreme

which

gold

European countries
pattern.

similar

"swim"

in

reserves

have
$3.5 billion.
liquidity is not only

record

a

our

The extreme

of

the result of good business and

a

high level of savings, but also the
result

.of

the

government's

am¬

biguous attitude toward the ques¬
tion which for years has disturbed
Italian economists, namely free or
state

controlled

Signor

economy?

When

Antonio

Segni
became
Premier last February he
prom¬
ised

greater

but

the

Although

was

state

new

not

were

economic

promise

of

been

not

the

freedom,

not kept.
enterprises

created, the

influence

and

power

existing

curbed

as

ones

illus¬

trated

by the opening of a new
$100 million plant near Ravenna,
belonging to the ENI, the state
controlled
petroleum
trust.
As
long as the government maintains
this

vacillating
policy
in
the
controversy between a liberal and

a

state-controlled

Italian

the

economy,

investor

remain

will

cautious.
West

Germany

At the end of 1959 the

story

circulated

was

Asked

by

Bonn.

American reporter
about the present economic situa¬
tion, Prof. Ludwig Erhard, the
German Minister of Economy, re¬

plied:
brief

"Good," but added after
reflection, "TOO GOOD."

And

that

is

true;

year

entire

man

of

1959

boom

last

forever

such

as

and the Ger¬

demonstrated

have
are

not

A

slump

taken

may

only in economic dis¬

not

but

Eco¬

this vigorous

expansion
with some
They know that a boom

philosophically.
tress

German

continued.

setbacks

result

a

the

During
the

leaders view

people

that

also

in

occurred

political unrest
during the

great

economic crisis of the thirties.

What

makes

German

economy

"too good" was a flood of indus¬
trial orders, a sharply expanding

development in housing construc¬
tion, an excess of demand over
oroduction,

and

a

market. At the end of

Annual

are

following
in

an

Report for 1959

tight labor
September,

was

available to others

publication

on

written

and address:

YODER, Vice-President—Finance

DETROIT STEEL
CORPORATION
BOX 4308,

while

money

dollar

and

reached

REPORT

request. Please mention this
R. A.

first

of

mailed to shareholders of
record at the close of business

March 2, 1960.
Copies

lost

France

same

I

On

S

and

37th

any
more

the fact

1959, compared
period of 1958
the
American share in Italian
with the

economic

machines trades. The
picture

exnnrtc

to

during

months

nine

not only

Italian

but

supplier

as

trade

was

sharnlv
$237 million to
$29

increased

the

to

concern.

was

leaped

Italian

the

balance

reduced

the

picture,

while

from

nomic

slightly above the $2.80

At the close of 1959 the

milling

imports from Italy in
$170 million
$240 million (1959). The
sur

creased

con¬

1959

export!

to

economic

the

the
chemical, in particular the
petrochemical, showed the largest

gains with

esting.

cannot

preceding eras, 1958
tively quiet. But in
Italian

x+aln

relations is int<T
During
the
first

in

developments

of

.

September

of

trade

future,

Italy

Britain

Politically,

America

the

of the economy trans¬
present trade surplus

by provoking in¬
imports of rawi material

domestic

the

maintain

deficit

a

creased
to

efforts to

stability

position
form

the

answer

machinerv
y

4'

development

have

1961.

of the

of

is

coal

principal coun¬ problems are not lacking
French economic picture.
Europe
we
present the following picture:
•
tries

>

*

the

mining in¬
dustry
which
resulted
in
the
shifting of a part of the labor

add

at

foreign visitors.

negative
in

curtail the

estimated

drop was to be
found in the higher rates offered

/.tfM* ru

the

situation

territory

were

excellent with more

was

than five million

American investments in the ECM

reason




x

parity.

SHARE- $170

the

other

a

exports to the U. S.
increased
by 44%. The French
machine- tool
industry received
more
orders
than
they
could
handle.- (Would
that one could
say
the same thing about our
American machine tool industry.)

with

Tourism

textile industries.

The

vertibility might impair the sta¬
bility of the pound were ground¬

may

and

securities

all

American

nearly

dealers in

American

combined. Between 1950 and

1959

of

be obtained from the undersigned and other dealers
only in the States in which the undersigned and other dealers are qualified to act
as

in

global investments has been rising

December

Copies of this Prospectus

has

1959

significant increase in
American investments in

vehicles

million

one

over

year

ECM

the

high

STOCK

$10.00per Shctre)

PER

/

a

apprehension.

PRICE

of

'

Despite large debt and other

17, 1960

INSURANCE

'.COMMON

first

in

or

ments, gold and dollar reserves
held by Britain as central banker

10,000 Shares
SURETY

plants

arrangements

would show another good
surplus.

solicitation of offers

The offering is made only by the Prospectus

A NEW ISSUE

have

European companies.

The

to
'\-i

working

sharp in¬

Western Europe has been substan¬

tially reduced.
(5) Reserves

future

ECM

6.7%. The
producing

production-'advanced
industry

automobile

well

a

S.

in European exports to the
and reduced imports from

American

the

of

American

achieved

summer

$2 billion. From October,
October, 1959 industrial

to

industry,

areas

fairly sta¬

last

record of
1958

recovery

growth of gold reserves

to establish American

faster

and

new

which

On

the

and

the

about

policy

making

reces¬

vig¬
orous upsurge of business
activity,
industrial
production, foreign
trade, consumer
buying, invest¬
ments, and so on.
a

the

was

G

:

,

economic

French

the

satisfactory in the

and

For

spectacular result of

most

The

be¬

problem.

of the Algerian

cause

although

reservations

some

are

pessimism'

little

future

the

regarding
there

is

There

sound.

force

ended

(1) During 1959 the mild
sion

coun¬

Europe, namely:

to

preoccupations,

private

Although Western Europe forms
a
political nor economic
unit, there are several common

German producers

say

uncertainty

"

Traits

us

seeable future..

shown
Common

exporters

difficulty in competing

exporting

ment,

tariff

re¬

by the DeGaulle

regime, France's economy

exporters who
do not wish to lose their markets

Prospects
leftwing

or

•

induced

more

left

enter the

may

Some

as

evidenced

ness,

feel

drop

postulates.

moderate

Communist

ment

to

is

Italy, politically the weakest
link,
has
been
governed - since
February, 1959, by Premier An¬
tonio Segni, an experienced and

84 years a

In

leaders

parties.

widened.
In
West Ger¬
the
Communist
party
is

outlawed.

will

would

labor
better

unre¬

political

represented

and

in

it

there

and

lost

neither

important

radicalism,

its

Italy
and
France
and
benefiting
from
shrinking custom duties to become
completely abolished .in-a fore¬

many

solved, tension has beei\ lessened.
An

American

up

wall

secret

austerity have

parliamentry
the

sets

tariff

no

trinarial

have

in

1962

ECM

the

external

common

of machinery and industrial equip¬

be

10

been influenced to

As

that-when

any

that

ar

*

economic

For

at least, the
present a loyal

have great

attraction

Favorable

ditions

landslide.

years,

group

American circles it is feared

In

eco¬

financial

and

forms carried out

more

tion, and

survey

What

real

a

of the first

compact
and
homo¬
geneous than those of the second.
are

Party will
opposition.. Showpieces of the la¬
bor program, such as nationaliza¬

Western Eu¬
rope.

five

Labor

a ;

economic

conditions

of

the

next

Norway,

expected, but not in

was

the form

of

—

many,

of Macmillan and the Conservatives last

Dale,

bargaining
power
of
the
France, Italy, West Ger¬
Belgium, Holland and Lux¬
embourg—will be much stronger
than the bargaining power of the
FTZ countries—Britain, Denmark,
ECM

<

parliamentary system

DeGaulle's

Tariffs and Trade).

on

The

parallelisms between

many

contested.

1959,"

as

Agreement

orders

European and United States economies.

The year 1959 was a vintage year
for the
European economy.
"It
may

are

machine tool

more

social

nomic,

political,

great

rapidly
and the Free Trade Zone
regained its
dynamism and
begin this September t) in strength, this time differing only
under the GATT (General in that the
political side was also

Market

He recounts, for

serene.

Negotiations between the U. S.
the two European economic
blocs
the European Economic
—

•

the

After

.

,

providing the political sky continues

FTZ

and

-

country which support his overall conclusion that the highly
satisfactory situation for the region may continue for the remainder
of I960

and

ECM

less

American

France

Recently returned from Western Europe, Cincinnati investment banker

Thursday, March 17," i960

DETROIT 9,. MICH.

Volume

(1179)

The Commercial and Financial Chronicle

5934

Number

191

people who are in
universities
colleges in any other country

1959
there
were
only
190,000 billion guilders ($1,850 million),
registered.-unemployed, less than.. One; of the government's■ chief'
1% of the labor force, with more policies consists in keeping nathan 300,000 vacancies. 9% of intional spending* in* balance with
dustrial
orders
received
during national resources and to avoid'
1959 had to be postponed to 1960.
recurrence
of over-spending as
Industries, like textiles and shoes, happened in 1956 and 1957. Much
,

which in 1958 had shown
down

'

'

:

record

new

w.hen

and

the

the

outflow

many

of

that

proved

not

was

sources

the

that

m

draining

other

caStal

Ger-

the

countries.'

j

_

'

remaps'serenl J
Americlm have

Economy

Germa"

West

1959

coroora-

totalImolnt

thh

Of

In

$287

ffrnHemisphere

the West-

($116miMon

fn American

Canadian industries
yanadian industries.

and

observa-

from

exports

high of 231 last October

a

spectacular.
economic

Swiss

preoccupations
are related to the antagonism between the two European economic
ECM

the

blocs,

is

Switzerland
FTZ

and

have much greater

of

those

the

of

Switzerland
depends upon Germany and Italy
for' the vsupply
of some 300,000
seasonal
workers,
indispensable
FTZ.

In

the

for

addition,

Swiss

economic
and

-

Better

industry.

conditions

in

Germany

make the recruitment
difficult and a formal break

Italy

iwore'

between

the

ECM

and

the

FTZ

this problem-even
complicated.
Switzerland
still
hopes
that
a
compromise
solution may be found satisfactory
to the ECM as. well as the FTZ

would

render

more

countries.

-

.

countries

European

American

recession

of

may

send

troops

about the wonderful place it is to

hit

with offices at 61 Broadway, New
York City. Officers are Oscar K.
Williams, President and Treasurer;
John E. Barrett, Chairman of the
Board and Executive Vice-Presi'-'They .would ask me, -What dent; and John. F. Flannery, Secabout Little Rock? Tell us why tetary. All were partners in Bar-*
people in your countiy ai e rett & Company, which has been
persecuting the colored people dissolved,

the

action.
r^ere.
.
,
/ He asked Congress for disIn every instance I^took time
cretionary .power to change the to ]point out,:tor 15 or 0 minu es,
sugar quotas whereby he could tnat> *n me unitea btates, tne
cut off the Cuban sugar supply, colored people are protected that
But notwithstanding that there fbey enjoy many of The things I
have- been demands in Congress sha11 n°w mention It is peifectly
that , he do something, Chairman natural that I spoke paiticularly
Cooley of "the House Agriculture from the standpoint of conditions
Committee, said we should wait which exist in my own state of

slowdown

«

aw
ceeded thB 1QS8 level by 5%.
the 1958

a

the U. S. where good
pviof

exist

imarKets

for

tor

fdnsswarp

glassware,

china, linen, broadloom carpeting
ntViPr
other

anri

and

tpvtilp
textile

snppialtipc:
specialties.

*

answer, for Western,
,

Addendum;

v

.

,

article,

Aaaenaura,

.

-

-

!

-

to

f0ols

Premier. Antonio

13

..Segni

think

1

titude.

•

Segni,. became •; Prime
he received the parlia-

when

Minister,

do

they

The

so

i'9
'
disappointed.

policy

Segni

puilL^'
promises
over

he

Netherlands

solid

cles

would

Nineteen

f

f

kaf4nnai~ have

n,

no

fifty-nine

has

been

s

p

j

several

r e

strongest in Europe. Gold
reserves held by the Netherlands
Central Bank were just over five
the




Genesgo
Common Stock
($1 Par Value)

■i
i

ago

ramn

He has nei-

j
j
reduced the num-

considered in many

was

as

a

share

Copies of the Prospectus may be obtained .from any of the several underwriter's only in states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

Blyth & Co., Inc.

teat

tr° Would Only throw hlrfl into
In
his
economic
cnviPt
Whoro
is
the
has not fulfilled the •; o - •?
I n 9amP;
?s ,tne
nda • when C took SPlrit of CamP David- in Panama
V
+
i
gave
he
t
A unnoV. nf c+iirtanto

nor

Price $33.50 per

around

d>

weeks

Eastman Dillon, Union

Equitable Securities Corporation

Securities & Co.

Merrill

Goldman, Sachs & Co.

Lynch, Pierce, Fenner & Smith
Incorporated

Stone & Webster Securities

Dean Witter & Co.

Corporation
A. C. Allvn and

J. C. Bradford & Co.

A. G. Becker & Co.

Company

Incorporated

Incorporated

Hemphill, Noyes & Co.

Hornblower & Weeks

Paine, Webber, Jackson & Curtis

friendly

cir-

movement

the left. For economic and
litical reasons, the liberals

bunch of students in Panama

a

Tucker, Anthony & R. L. Day

talk

about

eivhw

tha

nf

panama Canal
n

woridpr

about tbP

we

we

e

^ond

not

so

nationals

to

stronS but Protected our nationals
all over the world.
Changing the subject, the most

to Segni who has motivated his

Walston & Co., Inc.

Spencer Trask & Co.
Robert W. Baird & Co.
Incorporated

McDonald & Company

Johnston, Lemon & Co.

R. S. Dickson & Company

old°l™Xn
°tfondsarut^Itected Hr

E. F. Button & Company

Shields & Company

Shearson, Ilammill & Co.

to

cnvprpiunitv

po-

de-

Goodbody & Co.

k

immediatelv

Alex. Brown & Sons

Bacbe & Co.

Reynolds & Co., Inc.
Francis I. duPont & Co.

demonstrate and our reaction is

The real trouble behind the of Segni — probably another
Italian political scene consists in Christian Democrats-will confront
the fact that the Christian Demo- the same difficulties and therefore
crats, the strongest political party, Italy will remain politically the
is a "divided house" with' sup-1 weakest1 link among the West
porters for a combination with European
powers.
Fortunately,'
the left wing Socialists and others^ the political weakness has no
who desire a closer cooperation great influence upon the increaswith the opposition of the right.. ing economic strength.

of

'

by the Prospectus.

^There wire ruCrs pUably

greater gains (20%:) Private investments, reflecting the confidence of the public, increased by
14%, public ones by 4%. Exports
the U. S. increased by 23%.
The Dutch currency remained one

buy; or a solicitation of an offer to buy,;

of such shares, The offering js made only

500,000 Shares

r

resignation with the impossibility. In consequence, even among his
to find a middle-of-the-road pol- own party, Segni was unable to
icy between the pressure from < find support for a clear-cut policy,
the left and from the right.
,
Whoever will be the successor

to

offer inn of these shares for salt, or an offer to

nroteption at all'

good in every respect. Industrial
production
in
general
rose by 8% while some industries,
like the metallurgical one, showed

very

ar-

be

cided to withdraw their support

prosperity. '

of

J. Clement
m charge 01

•

the government

u
j
ther curbed

cow

The

an

any

underprivi-

us

by Foreign Minister Palla to Mos-

Switzerland, the Netherlands offer a picture of peace and

This is not

countries realize that they

} 6 riSht = .llJfc,efal®v monarqliists i^issiies. But it doesn't take any?ud ne°-fasclsts m the would * that nietelvas strong as that to comh°P® be- thing ston
the
government

ber of state controlled enterprises,
In addition, the recent trip of
combined with increased exports President
Gronchi, accompanied

.'Like

coun-

.

compilation, of my ledged

the

After

,

banking circles a favorable
evolution
of industrial
activity

predicted for 1960.

George M.
r

.

PHILADELPHIA, Pa. Geo
Swbad, Vice-I^esiden: aind
se;of Burndy
speaker at a luncheon meeting of
the Philadelphia Securities Assonation to be held Wednesday,
March 23 at Barclay Hotel, Phil-

Europe nor particularly theofunderpriviledged
Snesv In viewour official a*

In

is

Hold Luncheon Meet'g

,

It is also argued that any action
of that kind on our part would

or

:theXBlirg7an^NpUVismthIretore C°Tv,?r°|ag?S1St .°i? p0li%-aC" -i 14 i» even argued that to break
^unders and"weN tea ' ^ ^io
Bel- Zse expe^tSfon^hlwTv^welelf diPto™atic relations with Casexports to

»■«

higher price for sugar.

new

nrinfiinaLfrnalQ ic'tn HnnhlP
-gium s pnncipai goals is to uoupie

A

r>i

Phlla. Sees. Ass n to

awhile. ;/
"
Indiana.
For one thing, it is argued,, if r
1 pointed out that there are ^delphia.
we took Cuba's sugar quota away, more colored people in uniyersiFiederick 1.
the world price of sugar would
the world; nrice of sugar would ties and .colleges in theof United Drexel ox,*3
States than the number
white rangements."
go up and we would have to pay

Washington
Russia
mentary support from the parties had given, the Cubans some guided

imorWo

he

conference I had wanted to jump
right down my throat on that in"dent and that they were unable
to ask questions about Little Rock
fast enough-to satisfy themselves.

impression that it would createin other Latin American countries,
But President Eisenhower on hisrecent tour learned that the Latin
American countries wondered why

There was a sligh
gain in the fall of 1958, but real
;recovery started
just last April,

•by some 10%.

nrnd.mtfnn

.

serious

has offered his resignation having
been in office for about one year.

'

■

everybody,

said,

start"tellng

oratory, and said:.

into

Belgium hard and industrial pro-auction in Belgium fell sharply

?QU5Qlntedn«tn;al

the wrongs to Negroes. We should

P

"strengthen

for-our own country.

The

1958

to

country should wire the Senate
and ask it to stop telling about

-

ternational fluctuations than other

Vest

use(j

that every colored man in the

.

sensitive to in-

is more

together;
went to

after listening to seven hours of

or take the consequences.

"cooling off" -only hurt the Cuban people whom
period would not be preferable we are supposed to love. Then,
particularly for economies like it is argued that if we take this
the West German -one which for action Castro will seize the rest
years has been running in high "0f
the American properties in
gear.
' ,
■
Cuba, despite the fact that he is
A good economist should be in- -already, acting to seize them as
terested in the present- only for fast as he can.'
what it will tell him of the-fu--^ Indeed, we are in a helpless
ture. What,-then, are the lessons state. All of our strength is being
of the present? Can-the economy 'massed for-Russia. That will be
of Western Europe operate in high .an aRLout war. With the .smaller
gear and. at the same time resist nations we have no power of dis¬
the
built-in' inflationary pres- cipiine at all,'
•
•
sures?.: The - \vpiter—observer..■ or^-■
Americans are being urged to
economist — does not. know the jpVegt
in
foreign
countries,

slight

...

ami t hypmhniiw
Belgium and.Luxembourg:

rpifrinm

Belgium

.

no

ECMLcountries-fcally sound-economy capable of
importance for resisting inflationary pressure a

than

Switzerland

FTZ.

member

a

the

group,

.

We

whether in the interest of a bas-

of

low

a

January, 1959 (index 1949=

100) to
was

in-

the

The rise

investments abroad.

92 in

p* atone

While

-

watch

I

we

■ ,*. ; \
/,
time when we were a creditor naMade* about seven o'clock at
tion and we could tell any country- night gt a time when, it couldn't
that mistreated, our nationals' to hit th£ press, he rose in his seat

.

policy of the ECM.
There-is, however, one-question
mark and it is interesting to note,
that in this respect there is some
parallelism
between the
West
European economy, and our own.
For years business activity in
Western Europe has been running
on a very high level, in some
countries resembling a boom. On
the other hand, the inflationary
spiral of higher wages, higher
prices is one of the less gratifying
results of booming conditions.
The question therefore, is

the usual quiet Swiss economy
emerged
with
a
sharply
accelerated
activity, particularly
as to exports. There was increased
revenue
from tourism, insurance
ever,

and

when

myself,

strong

so

nation that

a

ping;/at'our heels.' There'was a; Indiana.

v

oasis in the1
In 1959, how- custom

Europe.

as

•didn.'f do something. Mr
Eisenhower returned, it is underAmerican position despite some stood, with the opinion that, perpreoccupation with the future haps, it was time to take some

prosperous

of

getting

are

we-

"enterprises

Switzerland remained the peaceheart

school

attend

I

and sensible statement that has been school in Indiana, went to school
are- made ;in the Civil Rights-debate with colored people."
helpless. Little nations keep nip-; was that by Senator Capehart of
The Senator wept PA to say
-

powerful

^

Switzerland

in

that

of trade relations alsurplus of the Amer balance irav dwindle
ingenuhy in offering

expansion
though the
alone in Brazil) and $45 million can trade
and $80 mimon te American
invested

was

our

Mexico, into Nicaragua at the
"I happen to. have been in Den- live in.
slightest. pretext; But now with mark when the Little Rock in•
politicaloreconom^ problem^ Castro of Cuba insulting us, seiz- "dent occurred I went to Nor- Form Barrett & Williams with Western Europe
We a™ ing the property of our nationals, way,. Sweden, Russia and other Barrett & Williams, Inc., members
interested in the continuation of We are, completely immobilized,
countries. Everywhere I went, it o£ the New York Stock Exchange,
good economic^ condUions
n the ' 'At-first we were afraid of the seemed .that those at every press is being formed as of March 17

sky
We

tion^hLe TnvSe? Lme swo'
rteUion abroad between 1Q^2 and
million

pay for equal work.
pointed
out
that
in

"I

BARGERON

CARLISLE

people

tions it may be concluded that the

country
aT
^onn Minfstrv^of

tee

labor

country colored people and white

.v

,

preceding

the

From

re--

-But

exportteg

cordtag- to

ful

BY

the labor

on

peace

colored

equal

It

October $100 million reentered, highly-, satisfactory,.^situationNovember $200 million.Western Europe may continue

m

...Ahead of the News

their demands for wage increases We
&ud

reserves

'

that in the United
people-belong to
organizations, and receive

States

trade,

Dutch

by some $1 billion^ front .will not be disturbed.
officials" were satisfied
1»rhhhlii^inn and h.ifinnt

treasury

•

the

the world.

"I pointed out

unions will remain reasonable in

$6 "billion

some

1959

that

hoped

in

reduced

were

as

of

in

is
reached

reserves

•and

will

development

future

the

depend upon the wage trend.

■

Gold and dollar
a

of

slow-

running again at full

were

blast.

a

11

Incorporated

Piper, Jaffray & Ilopwood

The Ohio Company

Schwabacher & Co.

Bacon, Whipple & Co.

Ball, Burge & Kraus

William R. Staats & Co.
Bateman, Eichler &

Co.

I

Bos worth,

Boettcher and Company

Courts & Co.

Crowell, Weedon & Co.

J. A.

Moore, Leonard &

H. Hentz & Co.

Lynch

McCormick & Co.
Newhard, Cook & Co.

Robinson-Humphrey Company, Inc.

Straus, Blosser &

•

First California Company

McDowell

Hill Richards & Co.

Irving Lundborg & Co. j

Lester, Ryons & Co.

Hogle & Co.

Manley, Bennett & Co.

The

Sullivan & Company, Inc.
Incorporated

Hayden, Miller & Co.

Halle & Stieglitz

Blunt Ellis & Simmons

William Blair & Company

The Milwaukee Company
-

Reinholdt & Gardner

|

Singer, Deane & Scribner I
Sutro & Co.']

March 17, 1960.

=J

12

Financial Chronicle

The Commercial and

(1180)

...

.

Thursday. March 17. 1960

against the non-stop rise in
expenditure. For rthe first time

mons

British Equities'
■

Weakness
May Not Continue for Long

since

the

will

During the past 40
House
of
Commons,

which had
The

London

Stock

Exchanges' weakness

does

not

stem

from

the

centuries

economy's outlook according to Dr. Einzig. Rather, he concludes, it
is due to the
the

assumption that the British Government's disinflationary policies

will be successful. In the meantime the economist does not foresee

promising outlook for equities
sions

remain.

However, the writer predicts inflation will

in 1960 and with it

course

'

its

resume

has been used for debates

pose

flight into equities at the expense of the

a

or

relevance

no

items
of Wall

of March resulted in

days

with other

The weakness

—

supposed to

its

cor¬

a

were

handful

of

full

the

course

railroad

em¬

the

to

which

over

workers, once the new
turn in the wages spiral has taken

Street during the first 10

on

general subjects which bore little

gilt-edge market and liquid funds.

LONDON, Eng.

the

for

its right and duty to scrutinize
public
expenditure.
Parliamen¬
tary time allotted for that pur¬

a

long as investors' bearish conclu-

so

primarily

ago

purpose of safeguarding the tax¬
payers' interest, appeared to have
lost interest almost completely in

unjustified sympathetic reaction to Wall Street and to

■

t

into being seven

come

estimate

the

take

debates

place.,

A

of Conservative members

Parliament, headed by Vis¬
Hinchingbrooke have now
on
a
campaign aiming
bringing
this
unsatisfactory

ployees will become fully as much
underpaid compared with other

count

the London Stock

industries

at

from Wall

their wage increase.
be ready to ask for

responding

gloomy tendency on
Exchange. Day
after day prices declined in sym¬
pathy with the declines reported
day.

Street

This

that

in

press

columns

in

their

there

London

follow

two

once

the

they

their

best
that

equities

no

Stock

Wall

and

had

In face of such

in

totally

are

that

inflationary de¬

no

to apply monetary disinfla¬
tionary measures in the form of
high
interest
rates
and
credit
,

The

squeeze.

is

measures

the

send

differ¬

anticipation of such
in

shivers

itself

down

sufficient

to

the

have passed its peak in the United

States, but the business cycle in

the immediate visible

The

Britain

is

swing.
of

boom

still

All

or

weakness

upward

arguments

The

not

may

the

on

the

avail.

no

may

London

monetary

signs

of

recovery

sell

in

policy

their

Such

Wall Street.
I

The pessimistic attitude* of Brit¬

substantial

that

ture.

to

resort

prevent
There

drastic

to
a

will

be

of

rein¬

for

to

it

inflation.

the

1960-61

increase

While

a

widely

was

show

Chancellor

in

month

the

expendi¬
two

ago

that

the

or

assumed

of

further

a

Exchequer

occasion for -would be able to reduce
taxation,
resorting to such measures in the the most that optimists now dare
near
future, owing to the infla¬ to expect is a "standstill" Budget
tionary effect of the wage in¬ with no substantial changes either
to

creases

every

railroad

employees.
When the impending negotiations
are
completed the average in¬
will

be

about

10%.

resume

As for the pessimists, they

way.

envisaged
taxation

This

the

will set the pace for an all-round
increase of wages by 10%,
And

possibility of higher

a

to

at

cover

even

though

claim

is

the

conceded

railwaymen's
on

the

ground

that they are badly paid
compared

Government

least

part of

In

the

wonder

Budgetary

circumstances
that

there

is

it

a

defi¬
is

scrutiny of

hope that in do¬

take

may

time

some

before

this movement could produce any
results
even
if
it
is
successful.

Meanwhile
to

resist

the

Government

has

through its own excessive spend¬
ing. On the assumption that these
disinflationary policies will
be
fully successful the outlook for
British
equities would be any¬
thing but promising.

in

snecializing

products, may

chances

balance,

that

its

sume

Should

however,

are,

inflation

course

that

will

during
the

occur

on

1960.

flight into

equities would be resumed. There

ism

wave

of

gilt-edged market, and holders of
liquid funds would hasten to in¬
vest in equities as

a

hedge against

the effect of inflation

chasing
G

power

o v e r n m

measures

ficiently
fective

of

the pur¬

on

the pound. The

ent's

disinflationary

not

likely to be suf¬

are

drastic

unless

attack should

to

and

be

producers are confident of near capacity operations
through June. Some mills are actually thankful tor plans by auto
builders to curtail production by
15%
to
20%.
Sheet producers
tried
to
anticipate
automotive
cutbacks by booking all the business
they could get-even when

on

considerable

another

sterling,

losses

of

gold.

At the moment such

tack does not appear

at¬

likely, how¬

Japan has ordered more than a
million tons of steelmaking
delivery in the second
That may help firm up

for

quarter.
the

$7

dropped
month

ton

a

buy

to

any

an

offer

to

sell,

nor

a

week, "Steel's" composite
No.
1
heavy melting grade

on

dropped another 67 cents to $34.33
A month ago, it was

gross ton.

a

§4!

50
U.

The

aluminum

S.

industry

will shatter all previous sales and

production

this

records

"Steel"

predicts

aluminum

year.

that

production

primary

will

total

?r0Un? Jo1 T.'1!'01!, t0,nS' u? 8f°

rise"10%
to

enough

fill

will

There

demand.

be

And

able

users

is

aluminum

more

available
consumers

to

buy
metal
throughout
the
year
at
prices
close to current quotations.
They
might even pay a little less for
products.

Political
poses

instability
threat

no

;

<

in

the

to

■

.

Cuba

domestic

supply of nickel, "Steel" reported,
It's entirely possible that Castro's

harassment

ests

might

of

result

nickel

in

inter-

shutting off

the flow of metal before too long.
Shipments have already been curtailed.

And Freeport Nickel Co.
suspending its Moa Bay, Cuba,

is

operation.

offer

of these Securities. The offering is made only by the
Prospectus.

March 17,1960

But any short term

can

facilities

ones

in

ities

also

steel

1961;

and

expand

open

new

Canadian facil-

new

shakedown
market

the

first

with

is

period

just

normal

few

in

to

years

factors

to

af-

and

This

is

include

compliance with the Securities laws of such State.

business

cycles




tiori)

of

1947-49).

These

figures

compare with the actual levels of

*165.2% and 2,654,000 in the week
March 7.
Actual output for last week beginning March 7, 1960 was equal

beginning

to 93.1% of the utilization of the
Jan. 1, 1960 annual capacity of
148,570,970
net
tons.
Estimated
percentage

for

based

on

cast

this

fore-

week's

that

capacity,

is

A month ago the operating rate

(based

on

was

1947-49

*166.5%

weekly producand production

year ago the Re¬
weekly production was placed
2,631,000 tons, or *163.8%.

tual
at

age

of

weekly

production is based on aver¬
production for 1947-49.

Weather

Cuts

Automobile

Production
Auto

production

losses

heavy

st,0I™y yinter weta9efrn
week industry expected
o?,UCe an
150,854 cars
~l% more than last
^

^

.

Severe snowstorms, which
March

to

artificial

abnormal

buildups

and

of

inventory, price and
hedge buying, and extreme

said

good month for
industry in terms of

the

took

total

an

even

production

East Coast assembly plants,
los* about 8,000 cars because of
the storm, Chrysler Corp. about
3>000, and Ford Motor Co. an additional

a

5,

loss was about 15,400 cars,
"Ward's" said General Motors,
which has an extensive network

4,000

cars.

According to "Ward's" the industry returned to normal assembly operations in the week ended

But unless the rate
orders picks
up, the operating rate is sure to drop off

March 10 and

ly, "The Iron Age"

9%

The rate of

all

Kesselman & Co., Inc.

(based on'average weekly prodtic-

ports"
contrast

new

June

steel

Milton D. Blauner & Co., Inc.

ca-

pa'dfty for the week. beginning
March 14, equivalent to 2,597,000
t°ns °f ingot and steel castings

§reater to11 of automobile productl0n than was previously exPected- "Ward's Automotive Re-

metalworking weekly

in

steel

and

Co., Inc.

W1^. a^eJa^e ::161.7% of steel

ended

shipments.

M. L. Lee &

The American Iron and Steel
Institute announced that the operatmg rate of the steel companies

auto

adjustments,

other

April will be

State in ivhichthe under•

Output Based

Capacity

such

periodic strikes.

in

This Week's Steel

the Eastern U. S. during the week

factors

that have characterized
the entire postwar
period.
These

of

legally offer these Securities

^rs are selling large tonnages at

fosses.

enppled marW industrial facilities in

short-term

seasonal

the

may

^

warehouses where price cutting
threatens to become widespread,
Regular ,warehouses are holding
Ime> out brokers and import-

con-

shortages generally resulting from

signed

s^rik? market crisis.
^ac^or 1S a^so affecting steel

the

pressures

any

run

that the market will

means

the national

$5. Per Share

be obtained from the undersigned in

some

through premium
sj;e®I ordered at the peak of post-

com-

down

period

artificial

cutbacks

may

to

users

Bad

in

about

relationship of steel

to

strike

Copies of the Prospectus

chased thiough elaborate converdeals, or imported steel to
which users are committed.)
It

Conditions

comments.

(Without Par Value)

Price

premium

into full production.

go

Industry Moving Toward

PlAfter ApriMonna^e' ^shipped,
the market will

as

Stock

is the

2,674,000 tons. A

producers

This

Hermetite Corp.

too

b?Th™?y +Usfs of
steel. (That is, steel pur-

arises,

react
< i.

*

the steel

market more than expected

tiOn)

sales,

Common

Mother factor hurting

by release of government
stockpiled metal.
If
the
need

sumption to orders.

4,

i

l«vej;he cutbacks have been

pinch could

be met

feet the

125,000 Shares

month

91.1%.

settle

NEW ISSUE

h^S

haveJaeen

^ by
most serious factor affecting the
many in the industry be-

*Index

an

as^uch

have

automakershwe been the
ip fu"
automakers have

91'9%

bright to

as

producers.

than

L

dates

nnfhonb-p

Wh 1

1™* **

to

'"for manv^'of J^y

^

iced

ever.

solicitation of

,

may take several months for

"Steel" reDorted

The
is neither

has
past

Last'

Normal
announcement

which
in the

market,

scrap

Steel

This

the

<?teoi

the 1961 model dates

half

present
an

hangeovers

at

oacitvmeant b0°kinS bey°nd ^

really ef¬

until

develop

words

,

of

sheet

rolled

pessim¬

regarding the prospects of the

,

cold

customers,

automotive

certain

would be another

watching

are

In ol;her words :steel delivered in
May
ini
expected to
experience greater wind up 1960 model year producparticularly those
wire and tubular

Despite cutbacks from some
their

to
re-'

In!
1

they

For a11 Practical purposes, some
automakers have placed orders
for their entire 196,0 model ru„

setbacks.

as

no

resentment
among
Government
supporters in the House of Com¬

mills,

dividual

Things look
Expects Inflation to Resume
The

involving

growing

average

inflation

by mopping up
the spending power it is creating

P

a

is

„jUaxhe'

S^I0?alBfwg0L the^Period
80% to 85% for the perioa.

Com¬

it might be possible to cut
down
public expenditure, or at
any rate to slow down its increase.
It

big drop

no

scrap

detailed
the

They

House of

so

cit.

crease

end.

an

the

.

further

are

deficit for the current year is now
expected to be larger than had
been
anticipated, and estimates

is prepared
measures

revival

mons

.undoubtedly

are

equities.

fears

investors may be explained
partly on the ground of the view
they have taken concerning the
Government's monetary and fi¬
nancial policies. It is now evident

Government

Stock

forced by the unfavorable
change
in the Budgetary situation.
The

ish

the

force

present in the minds of those who

half-hearted response each time
were

London

of the

fears of the effect of
Government's disinflationary

the

Exchange was determined to re¬
gloomy even though it made
there

the

on

cause

Exchange,

were

Stock

main
a

affairs to

to

may

have

spine of
investors in British equities.
Al¬
though the fall in Wall Street is

ent.

of

estimates in

velopments the Government

business

prospects

countries

ground

Budget and Inflation Fears

to
this

pointed
out
why the
Exchange
should
since

the

on

underpaid.

are

state
want

ing

reason

Street

more

So they will
another rise,

British

They

is

conditions

in

the

readers

British

justification.
that

of

of

doing

were

convince
fall

spite

previous
the fact

commentators

most

financial

the

on

they had been before

as

embarked

the

in

ease

anything

5

Continued from page

crusading fever in favor of cut¬
ting expenditure appears to have
a

developed.
years
the

By Paul Einzig

that followed the

years

conclusion of the first Worid War

new

is

sales

says.

orders for May
and

disappointing,

offices

possible

sharp-

are

putting

pressure

to

line

sizable orders.

on

up

However,
coming
mean

an

more

is expected to proestimated 150,854 cars—
than in the earlier week.

The reporting service said most
assembly lines are geared to a
five-day schedule, but some plants
are working overtime and a few
others
cut*
production
time
to

the slow rate of in- three and four
days,
business today does not'

the

Three

market

any major users

mitHnf
mitting

duce

has
are

collapsed,

holding off

poss,lble b^ore

themselves.

More

com"
than

eight

Ford

Division

plants,

Chevrolet
sites
and
Rambler works at Kenosha,

the

Wis.,

are operating six days; Chrysler's
Detroit assembly plant

Jefferson

,

,'

mi«.

^.,nrrirtWto
ir,1r

Kjt' ,F !'• lMww««wn™Wl»»W,l|1OT 'f',^ ';r""Hi"
(\

Volume 191
tr* '

was*.down

•

Number 5934

March

on

.

.

The Commercial and Financial Chronicle

.

(1181)

7

and

the

Electric Output 9.8% Above

Corvair line at Willow Run, Mich.,.

1959 Week

1 '

/

1.

-

increase;

$5.84,

'

On March 8 it stood at

0.5%

up

tions lagged. There was
week rise in lamb prices as

the

from

ZBS i?1? ?.n ^a5&jlit:lJ,e<:au?S °! * The amount of electric energy earlier $5.81, but 4.7% below the,
+w°c?
J11?'
^ar(ls
added distributed by the electric light year aS° $6.13.
: r
tnat
.

btudebaker-Packard at South

Bend,

Ind.,

days

worked

the

in

week

only

under

and

three

With

"*

tion

kwh.

557,607

of

March

This

37,868 cars,

above

the

in

13,233

1959
cars

an

Trade

corresponding week in

low

1958.

were

4,454

cars

1%

above

the

of

day week.
:

There

week new

highway
tho
the

one

or

trailers

more

"IQfiO

rat^aiU^r^slocks
rdie> ana gioss siut-Kb
dUU

that

on

Feb

alent to 51 da^' Production. V-

1 o«n

27

Included

were

in

For the

week's

over-all total).
This was
increase of 3,099 cars, or 44.9%

above'ttTcorr^ondtag
1959

and

5,224

cars

of

1960

identical

with

originating

ol
?

and

of

39

in

the

45

one

°

this

year

Business

Failures

Week
'

.

Intercity Truck Tonnage Declined
6.9% in March 5 Week Compared
1959

week

thflt
that

week

of

nf
of

tho
the

1959,

nnrrocnnnHincr

corresponding

the

American

Trucking

Associations, Inc., antonnage was fractionally behind the previous week

nounced.

Truck

of this year, down 0.8%..

usual ice and
eastern part

The

un-

snow
throughout the
of the nation caused

tonnage decreases at

Off

Ending
.

^ d
ling

.

as compared to last
year and
compared to the preceding 1960

week.

itself

The
a

Feb.

21-27

week

week of depressed

day in

some

was

X.lc
the

.

mon

carriers

of

general

Comparable

re^0™'
^

^aJ~

,,

Week

.

0oo

a

,0™

,

,

downturn

s

1+.

®| *11"

$o,ouu,

...

,.

iyay- inirty-iive ot

„

a year ago.

:abl^

Jfuff ?c J JlHH'

Prices

domestic flour
exporters picked up

purchases by

and

prices

advanced

frac-

tionally.

United
in

freight

throughout the country.

the

announcement

is

Jieither
The

NEW

an

offer to sell nor

offering

is

made

a

by

the

of

an

East

—5;

West

South

Central

and

Pacific

States

week

similar week

a

was

ended

Retail

Snowstorms
in

many

tailed

Trade

and

Sales Down

last

March

considerably

areas

over-all

retail

sharply

trade

from

Department

boosting

Sm

1960, decreased 17% below
period last year. In the
ceding week, for Feb. 27, a

like

6%

the

down

week

both

mained

the

to

similar

corded.

total

March
year

dollar

trade
9

in

1959

collected

Inc.

varied

from

levels

by

ages:

13%

according

street,

by

ending March 5

cities

which

declines

in

the

following

Atlantic

a

N^w

estimates

—20

1959

to

business of J. V. Ellis & Co., 3827
Linklea Drive, as sole proprietor.

—2o:

to

—24;

statement

Proprietor

HOUSTON, Tex. —Mrs. Lura R.
Ellis is continuing the investment

percent¬

New England —21

reported

department

ending March

included: Boston 31%; Philadel¬
phia 32%; Cleveland 20%; Rich¬
mond 31%; Atlanta 21%; S. Louis
25%, and Kansas City 13%.

spot esti¬
Dun & Brad-

comparable

5%

5

re¬

ended

below

a

was

'•

heavy

to

Regional
the

of

week

to

9

was

ago,

mates

volume

the

Re¬

department
store
City for the
March 5, decreased
York

store sales for week

The

a

the like period last year.

Other

level.

tail

5

over

reported over the
1959 period, and from Jan. 1 to
March 5 a 1% increase was re¬

prior week and a
Only food volume re¬

close

ended

over

decrease

the

ago.

For

March

was

New

four weeks

down

were

ended

preceding
week
ended
Feb. 27, sales decreased 2% over
the like period last year. For the

indicate that sales of
cars

de¬

the

In

the greatest effect
on
sales
Spring
apparel, furniture,
major appliances and linens. Scat¬

passenger

in

week

23%

the
pre¬

System

sales

of

new

in¬

reported.

was

decrease

serve

had

from

7%

registered
the same period in 1958.
According to the Federal

last year, when the earlier Easter
stimulated sales. The bad weather

tered reports

of

crease

the four weeks

and

was

Board's

relating

appreciably

was

orices

noticeably

oatf weTe limfted,

to"

prices moved

bean

store sales on a
basis as taken from

Reserve

Federal

dex for the week ended March 5,

cur¬

similar

the

17% for
Week

5

coutry-wide

weather

consumer; buying
in
ended this Wednesday,

week

Coast

to —3.

+1

the

Sharply

cold

East

West

—12;

Nationwide Department Store

For the

year ago.

Mountain

—4;

exports

season

Outs

to

0

the

to —16;
to

Slfe m™ '
up

fractionally. Vol-.

soybeans was quiet and
were light. This held soynlneo to thp nrpnprlinti'
prices close to the preceding
nH„oc.

week.

A

registration

with

the

•

.

due ' to Lenten needs and cold
weather; rice prices remained at
There

was

a

fractional

Securities

effective.

prior

This

be

of

in

an

offer
State

any

may

time

to
in

not

not

buy

nor

of

any

such

be

securities

sifld

nor

has

shall

or

may

filed

been

offers

statement

constitute

such

which

unlawful prior to registration

laws

these

registration

the

shall

advertisement,

solicitation
securities

the

to

to

and^Excliange Commission, but has not yet become

These securities

accepted
tive.

in
flour
slowed
up
during the week, but prices were
steady.
Replacement
buying
of
rjce was sustained at a high level
Trading

an

there

offer

be

to

buy

becomes

any

to

sell

be

effecor

sale■ of

the

these

offer, solicitation or sule would

qualification under the securities

State.

March 13, 1960

Proposed New Issue

decline

prices last week, despite
slight increase in trading. Cocoa

in coffee
a

a

2,500,000 Shares

up somewhat at the
of the week as volume expan(jecj a substantial rise in sugar

prjces m0ved

end

Aviation

prices occurred during the week
as trading expanded noticeably,
Hog prices moved

solicitation

only

—11;

to

prior week and 66,000 in the

up

offer to buy any

of

Employees

Corporation
Common Stock
„

This

the

fractionWholesale Food Price Index Up ally as the salable supply dipped
WpoV in ?» Rw
•
moderately from a week earlier;
The wholesale food price index, trading in hogs remained close to
compiled by Dun & Bradstreet, a week earlier. A moderate de¬
Inc., rose fractionally this week, cline occurred in steer prices as
for the third consecutive weekly supplies picked up and transac-

com-

to

—1

Tuesday came to about 110,000
bales, compared with 360,000 in

Middle

trading

biffher

numDer as a weeK ag°-

more

—7

Central

sup¬

the New York Cotton

on

scattered.

year

movement
of
grains
to
was
curtailed last week

siuggjsb5

,

r and ?'9°.rre?ponid~<
^W-i-

corre-

by sn0wstorms in the Mid-west
resuiting in a moderate rise in
prices. Wheat offerings were light

an^V las"

week

;

■

the

on

^' i ume in
the 311 occur- receipts

dipping to 260 nom 261 a week

These findings are based on the
weekly survey of 34 metropolitan
areas conducted by the ATA Research
Department.
The report

reflects tonnage handled at
than 440 truck terminals of

the

Central

Marketings of corn were light

?far™Casuallies wlt£ liabilities of
f?'00.° „°tr ™r% „cha"f?d httla;

Washington's Birth••

.7

in

The

and

was .ir* sP^.rfa u^esV.
v(? Yliabilities under

tonnage

localities

278.01

and

markets

*

,

.

slIJi / Wf
Most of, the week

owing to weather conditions and
observance of

10

^ar a£° a5ld Hie
36 m. 1958.
However, they edged 1% above
the prewar .lev*el of 286 in the

both
as

Slightly in

March

,

,

points

many

with

week

" Prices over the prior week. Al' though the buying of rye was

preceding week, reported Dun &

Week

tonnage in the
March 5, was 6.9%

ended

helnw
below

March 14, com272.14 in the prior
on

^ appreciably. This boosted wheat

Intercity truck

.

pared

co[.re" mins

Commercial and industrial failures diPPed t(> 29°
the week
ended,.March 10 from 299 jn the

.
.

With

PrlCG IndGX' Inc., stood by Dun &
compiled at 272.51
Bradstreet,

and

Tq^q

•

orders were 21.7% below.

ago

1958.
>

previous

fT!!Ir0 infti S>in
JZ 9^*7^ k!

A

corresponding week

1

the

rpinftkf lilig

type of traffic in the current week
with

were

W£ue

corresponding period of
and 43,979 cars or 122.5%
above the corresponding period in
1958. There were 51 Class I U. S.
systems

mills

.

1959,

compared

week, boosting the
commodity " price level

(1930-32 = 100)

onded Feb. 27, I960, producreporting mills was 7.8%
be*°w> shipments were 6.6% be-

79,869 for an in26,127 cars or'48.6%

above the

railroad

vwere e<
weie euui

year-to-date, shipments

rePorting

Compared

totaled
of

grains, sugar,

on

this

scrap

i? were 8.2% below production.

109.4%

Cumulative

loadings for the first eight weeks
crease

Higher prices

bel°w production; new or- spending date

weekof

or

above the 1958 week.
of

Wholesale Commodity Price Index
Advances Moderately

a ' week earlier,
fllled orders w<rre equivalent to The Daily Wholesale Commodity

in

'

Snow

.

For reporting softwooa mills, un- moderately-over

revenue

(piggyback)

ended

week

(which

,

mills hogs, and lambs offset declines on
production, coffee, butter, steers and steel

Unfilled orders of reporting mills

reported

cars

North

limited

and

plies.

,

amounted to 36% of gross stocks, general

9,999

were

—8

through March 8, exports
eral use- H is not a cost-of-living were estimated at
3,976,000 bales,
index.
Its chief, function is to compared with
1,173,000 in the
show the general trend of food
corresponding period a year ago.
prices at the wholesale level,

these

below!

Central

of cotton

steers,
currants,
and
hogs. Lower in price were cocoa,
raisins, and lambs,
The index represents the sum
total of the price per pound of 31
raw foodstuffs and meat in gen-

during the week
1960. In the same

of

Atlantic —12

North

potatoes,

be-

3.8%

were

orders

12.5%

were

eight-tenths

or

preceding holi-

>

loaded with

an

production

ended March 5,

Loadings in the week of March
5

Barometer

South

result of

Exchange remained close to
prior
week,
and
trading

Lumber shipments of 466 mills
reporting to the National Lumber

cor-

2.4%

or

the

of

trading

moderate

a

South

active

a

Commodities quoted higher in
wholesale cost this week were
flour, wheat, corn,
hams, lard,
?
sugar, milk, cottonseed oil, egg*,

Lumber Shipments Were 10.8%
Below 1959 Week

of

but

that

comparable 1959 week.

an-

decrease

a

6.4% below the

or

of

Railroads

was

responding week
increase

5, 1960,
the Associa-

cars,

American

nounced.

freight for

revenue

ended

above

previous
week's total of 14,271,000,000 kwh.
and showed a gain of 1,275,000,000
kwh., or 9.8% above that of the

Corresponding 1959 Week

totaled

ac-

-

cording to the Edison m
Electric Institute.
Output
was
9,000,000

Decline ' 6.4%
for.
Week in Comparison

week

es-

.

Loadings of
the

Saturday, March 12, was
14,271,000,000 kwh.,

timated at

Carloadings
5

industry for the week

power

ended

review

because of labor trouble.

March

13

•

(Par Value 10c Per Share)

.

these securities.

Offering Circular.

Offering Price

ISSUE

March 16,

$2 Per Share

5' V

1960

100,000 Shares °
Aviation Employees

Vernitron

a

holding corporation

or¬

three wholly-owned
subsidiaries, expects to engage in (i) the writing of life insur¬
ance, accident and health insurance and annuities,
(ii) the
writing of fire, casualty and

COMMON STOCK

'

.

Corporation

Corporation is

ganized in November 1959 which, through

multiple-peril insurance, and (iii)

automobile finance and possibly other loan business.

(Par Value $0.10 per Share)
A copy

Price: $3.00 per

Copies

of

such

-

.

:

-1

the

Offering

other

~

as

may

lawfully offer

J. A- Winston &

Netherlands Securities Company, Inc.




Share

Circular may be obtained from the undersigned and from

dealers

v

these

securities

Co.,"Inc.
r

"

of the Preliminary Prospectus may be

obtained
-dealer.

from the undersigned or your own investment

in

*

this State.

"

y./K. Osborne & Sons, Inc.

G. J. Mitchell, Jr.,
729-15th St.,

N.W.

Co.

Washington 5, D. C.

Ralph B. Leonard & Sons, Inc.
25 Broad St.

New York 4, N. Y.

J

14

(1182)

What the Fifties Told Us

graph

'

By John R. Bunting,* Business Economist, Federal Reserve Bank
of Philadelphia

what

they tell

about the sixties. He recalls the debate

us

net

over

>

always turned out to. be the; eternal truth. Thus,,in
submitting
impressions bound to influence the sixties that have

ingrained in

Bunting is

they may appear

aware

new

era

foolish in the 1970's

as

philosophy of the 1920's looked

A rash of books and articles on the
1960's reminds us that a decade

of

era

the

perpetual

1930's it

ending, a new one beginning. ally assumed that
Peering into the future is always was a "mature
who

and like many
read

nearly

our way

■

Much
what

•

of
read

we

suggests
■*

imum

that

of

tween

come

J

1970

about

153

and

and actions which-have

be

the

is

accurate

jection.

John R.

of

the

past.

is

But

in

1940's which seemed
different from the

place

suggests

and

what

that

depression-ridden
So too

So

back

we

did

next

desperation

1940's.

Finallv, the pre¬
decades, predominantly

characterized by poverty and
war,
shaoed
the
as-yet-to-be-defined
1950's.

just

a

suggested is
little bit true—

is

ject

as

start

the future—then it
fruitful to try to de¬
"What the Fifties Told

At the outset let it be
clear that
not

we've

takes
to
we

only

recall

learned

to

prove

be

may

eternal

moment's

a

that

thought

that

see

It

hardly .-began

.

be

general

would

postwar

in

we

the

or

It

reflection

latter

were

may

truth.

in

1920's
"new

a

boom.

sluggish; The depression
register the
•
■

Some—and

many

that

business Jeaders—suggested
it

Great

to

be

the

1959

vs.

difficult

to

large

this.

is

fill-in
r,u°'ild

as

to

get

at

sub¬

a

One way to
1949.
What

recreate

the

on

help

intervening

us

with
'

Take

'

our

years

conclu¬

/

■

*

Britain

obsolete.

and

stream

ism

of- articles

U

S.

see

us

easy.

seem

obvious

as

A

we

lot

were

of

then.

It

things

that

not

ob¬

now were

so

really

post-war

Television

Some Specifics

on

Between

-

force

new

industries

—

Goliath

such

on

mores,

and

on

our

politics

was

We

concern.

,

of

source

a

and

-

At

the

these shares
appears

having been sold,
as

a

this

matter of record

could.-^Government security

th^

the Federal Reserve

about the

a

national credit

disorder in financial markets
time when the nation had a

after

co°r,e>

0f

illness

pic¬

of

,

were

of .chronic
discernible in certain

basic industries, i.e., the
farm, coal, and railroad industries.
our

Farm surpluses revealed

was

Phono-

our

abil-

Labor

100,000 Shares

and

-

going

.

by

truck
strife

management

the

was

Labor

news.

by

up

legislation
opinion in

public

business

the

new,wa.yj of settling labor-

out

by

our

"Where
men

are

.of

played

in

our

bright

writers?"
It

nearly all that
rules

was

sent

business community.

asked.

in the

10,

of

displays of

management differences.
A caH for a new credo

conservative

March

climate

latter 1940's. Awesome

mg for

the

a

was

changes
essentially the

young

business-

apparent

to

good many of the

economic

America

1930's.

rule

5, N. Y.

were

p

n

and

This

:recession;
ad¬
reduction

economy

substantial

a

spending

made

recession

t*e

us

contraction

severe

a

showed

decline in defense
not have to bring
in

over-all business activity.
It

too, that tight
fetish of our

illustrated,

money

not

was

a

money managers.

Money tightened
removed from

after the pegs were

the Government securities market

in 1951. It continued tight as

in

boomed

ness

1953. But

comprehensive
to

taken

busi¬
into

on

before many of our

even

tivity turned

and

1952

of

indicators

begin

ac¬

actions were

down,
to

this

reverse

policy.
•

These

monetary

prompt

reduction

ures,

rates, plus

meas¬

tax

income

in

built-in stabilizers

our

—unemployment insurance—went
a long way toward moderating the
recession...

.

.

A

confidence

new

u

in

busi¬

our

system began to;become evi¬
dent.
In
the
ensuing
recovery

ness

and

boom, the stock market, long
quiet, began to assert itself, in¬

vestors

that

seemed

ours

last

at

maybe

was

to believe

not

mature

a

forgotten. For example, economy after all.
we le?rne.d how necessary it was
Business
activity
zoomed
m
™aintain a-posture of military 1955. A tremendous surge m de¬
'r.eadiness, and what a tremendous mand for houses and cars in the
'Pr°ductive; machine wqhad. Guns latter half of 1954 and into 195d
arld Gutter Yfere both - supp led
sparked this boom. Changes in
without inflation once the initial
credit terms, which made money
Phases of scare-buying were over,
?

game: as

were

be

changed

But what did these
mean?
It was still
same gam^-or was

checked

if

prices

to

move

within

or

Beyond
China
the

to

our

borders the fall

the

Communists

biggest impression

on

of

made

not

were

Government

isolated

Government

more

per-

freely. The

debt

couldn't

ignored.

the,playing field.

It

easier

seem

It had to

get into the economic game.
Pegs
pulled
from
Government

securities prices.
was

called

Monetary policy
to

upon

help

inflation.

buyers,

insured

written
and

for

auto

cai

important con¬
surges in demand.

an

tribution to the

Many

and

house

for

made

a

loans

mortgages

30-year
of

were

maturity,

36-month

ma¬

turity became commonplace.

•
_

was

were

check

Hard

between two
giant automobile
manufacturers
put a severe strain on dealer-pro¬
ducer

competition

relationships in this period..

New dealer franchise agreements
were

worked out to

prevent wha

the dealers construed to be over¬

But

the

Korean

war

obscured

other

lessons. The recession
of
1949 had been reversed
and busi-

ness activity was bursting through
to new peaks when
the

loading.
"Motivation research" became a
familiar term to nearly all Ameri¬
cans in these mid-fifties. Why w

fighting buy what we buy is not easy
started.
In
the
frantic
buying determine—especially in an ecan~
period that followed,
perspective omy as affluent as ours was be¬
was lost. Some were left with
the- coming.
Some .depth studies oy
impression that the outbreak
of motivation
researchers
provided
fighting had brought us out of a

fascinating

recession.

War
from

II

got

new

a'rtfvilv of

Korean

fife

and

At

da

no

crisis.

H
v°f

Old

factories

and

^PtheMTOrW^^a^vltorfe-'
post-war

Ameri-f Chronic

trends

re-emerged,

employment

problems

why

reasons

items sold and

Certain sectors of the
economy
lagging since the end nf

1960.




tbat it

now

harped quite a bit from
wba^we^learned^mnit0"^? i°l

huge

and

sheer power sent thinkers search•

INCORPORATED

dec-

But we

•

;be

favorable

healthy

Cascade Pools Corporation

R. A. HOLMAN & CO.

"tranquil

reiatiVely shortlived

mitted

the 1930's, met management headon
in
tests
of strength
in the

York

burden-

and never demanded the same all°ut effort re1uired for Worid War

securities

freight was
plane, too.

only.

New

about

and

know

we

of

ness

it

not to b3 like the forties after
^
Tke war wag

not

pushed the

cost of rail travel above air. More

advertisement

(Par Value $.10 per Share)

the

to

again that a
spending did

fast

decade,

1953

possible by the end of fighting in
Korea. The brevity and shallow¬

space
a

late

the

as

Government

in

were

,

Street

the

of

lessons.

about

justed

ity to produce more food than we
willing to consume. . Coal »' Important, too, we learned that
had obviously lost relative to oil damaging inflation
probably could

t

COMMON STOCK

economic

lot

a

fajse start. The fifties

a

recession'of

The

.

■

symptomatic

'constantly
in
unions, shored

Wail

1959

Possibly

v

Signs

NEW ISSUE

54

turn

heartaches,

and natural gas as a source of fuel
of

1949

agreement?

1954 and the subsequent
recovery
period contained many

the Fifties

ade» he^an

wag

iCan W^wp^nf

an¬

early

possible to detect a
nationwide sigh of relief. The sac-

rifices,'

energy. Fare increases
All

•

almost

was

t

even

out that

spread

least.

through the period,

romp

com-

weren

to live with it-or

we

vast public debt.

tures, radio, publishing, advertis¬
ing, and spectator sports—on our
being widely discussed.
Swing was still king.

how

sure

at

other

motion

as

ment rand-

and

society. Everyone was be¬
ginning to want to own a set, and
sales reflected this urge. The im¬
new

public debt

easiness

our

pact of this

.

months

•

of the

to

both right, to some extent at

were

came

some problems of the forties'were
anxiety sprang an behind us. It
seemed only right
interest
in
'Big
Government. • that
by some natural law the ten
Paper work imposed .on businessmomentous
years
of the forties
men
by
bureaucrats
was
freshould be balanced by a deca e
quently a subject of heated ccn-, of
comparative tranquility in the
versation. -Many.sincerely believed
fifties. If this is what many of us
that
Big .Government could be
thought,' or
wished,
we
were
made significantly smaller
by apbrought up short by the outbreak
plying business practices to en- of
fighting in Korea about six

efficiency,,
•
Similarly, the enormity

tied

were

agreements

type

of -this

ftywa"'fetreCdanwouM c^eate"^

counterparts.

bold

was a

A."

Treasury

cars

on
display. * They
were
longer, lower, and more powerful

pre-war

"Social-

or

nf

were

their

about

or
"Creeping So'socialism by Default,
poured from the business press.

cialism,

if

vious then. It is almost embarras¬
sing to remember some things.
first

elsewhere

con-,

unless,

that ite proponents and opponents

happened.; And probably few
could agree on just what should

A continuous

courage

■;

yourself back to 1?49 and

isn't

in

become

these

as

not forgotten.

was

,,

we
reading, thinking, and
doing then? Following this a brief

than

had

rates

wage

Those opposed pointed

about the

occupy

of the question

position in the world society other "built in" inflationary bias
ten years hence. But America had would be added to our
economic
some nagging doubts about itself,
system. In other words, price rises
Mostly they concerned our busi- would beget
cost
rises
which
ness
system. Subconsciously, would
beget price rises, etc.
heads all over the nation nodded
What did we learn from this
when a famous * businessman in new

was

to

looking for .as
heightened anxiety.
the "'Fifties

uTere

of

seem

Us."

what

not later

or

believes

1949

.

It

been

impressions of the
immediate past shape the
changed

termine

-retro-1-

truth. Now for the search.

The

that events and

would

to

seemed

The stock market

ultimate truth. Rather it -is
at
this moment of

society

try to

character

in

history

our

war-torn

than

••

(3)

in the 'over-all

long-term

changes in over-all prices.

mediately-preceding -World

events

made-these

and

are

sions.

has

levels

prewar

Impressions frCm

is not

the

raore

to -the

naive

so

look

what

our

and
preoccupation with internal
affairs in the 1930's lead to

what

There.

.

to

i

we

level .put

same

Our business community seemed
terribly .concerned about Social- be chronicled in the
short
ism.
What
was
happening
in available here. But here is

\yhat

create the

If

the

actions, whether

learned

we

ten

•

back

go

close to -it.

that

was

this,

can

casugl reflec¬

a

ing decade. The excesses, the spec¬
ulative binge in the
1920's, helped

vious two

might
—or

Out

this,

ia the previous decade
shaped the
changed character of the succeed¬

years.

each' led

it was false.

1930's, what

strongly

than

other

longer-term

the recent history

changes

tracts out

doubted

Few

cur

which seemed quite
different from
the 1920's.

took

More

over.

the

were

a

ent from the

tion

suggesting that inflation

in

we

pro¬

Certainly the future

More than

world.

tion

other words, what' we
believe to be true is what
shapes

Bunting

looking back over our own life¬
time, the 1950's seem quite differ¬
quite

our

writers

among

(1)

(2)

snarp

price

preeminent POsl"

leading -confident of

our

tone of many articles and speeches
of that time suggested that prices

be-k

spectrin

an

continuation

of

notions ""seem

1 y
May-""

o n

this

of

business

and

development

,

truth

more so.

Some

-

0i

II

be

1950's,

of our
This so-

said:

desirable,

of the atomic
bomb and the clear superiority of
our
industrial machine made us

year

max-J

million

1980.

the 1960's will

like

us.

were

it

a

the

was

The

.

proponents,

union management contracts were

Food

J

menus.

Its

•

got time conditions. We had played a
decisive role in bringing the big
consumers war
to
a
successful conclusion,

soar, as

changes in the cost of living, in
the Consumer Price

things, *

wives

postwar.1 recession,

about

had

we

pros¬

Index, in fact,

agreement, rtoo, that the years imWar' early 1950 cautioned: "The thing
were
the norm; that war and that hit u.s in 1929 cannot be aspostwar, years
Despite the apparent speciouswere
abnormal;, sumed not to happen again. Perness of these notions
that unemployment .and business
sonally I have been waiting for
todav, it 1st
important to remember that at that distress .'would return once the years -for the ax to fall, and I am
time each made a lot of sense. To economy got back on a peacetime
becoming
more
convinced* mosome
extent
too,. the
mentarily that it is not far away."
apparent footing.

on

subject

"that has

what

to increase until it
reaches

fascinat¬

ing

1949

bered

can

1940's,

we've

everything
this

first

economy." And
forget that in the early
was
generally believed
that the-population
will.continue

interesting,

to

upgraded their
But

prosperity." In
nearly univers¬

was

their

and

economists

is

others,

:i

in the 1930's.

nationwide

theory—to

sales began

the

as

to

with-the new-length skirts.

,

thinking'in the decade that just ended, Mr.

otir

general

tional

sporting events had
doing capacity business since

wardrobes

three pervasive
become

amid

to be a na-

There seemed

cans.

boom when

ready to

how we felt in 1949, perhaps it
could be said that we were proud
the war. A lot of money and at- of our position in the world order,
tention was going into clothing as but somewhat apprehensive about
returning G.I.'s replenished their our business system under peace-

is developing, the changes that have
transpired, and examples of what we accepted to be true which have

.

seemed

and spectator

.*

"new capitalism"

a

well,

selling

.were

Thursday, March 17, 1960

.

been

Assuming events and impressions of the immediate past
shape the
changed character of the future, Mr. Bunting scrutinizes the fifties 1o
see

records

.

.

compulsion to lay tne
e- perity in a few of our older in¬
areas
the battle of speeds was settled, sponsibility for this change or rue dustrialized
popped
up'
Consumers pondered about 33 Vs, to
again.
"
'
traitorous
actions
of
s01^®
One
of the big stories of
45,
and
78
r.p.m.
records, and Americans
in high places,
the
seemed to be deciding that they "Reds"
were
searched out. At early fifties involved a new type
wanted
to
be able to play
labor-management agreement
all times it seemed as if we found
three.
more than existed.
forged in Detroit. In essence, what
Night clubs, restaurants, movies.
To summarize in a sentence it did was tie hourly wage rates
and

About the Sixties

whether

Financial Chronicle

The Commercial and

others did

some
not. in

general, the attention paid "M-K.
served
to

as

a

constant reminder as

just how far

our

economy

had

progressed from the days when
items could be readily- ^classified
as

necessities

or

luxuries.

1

The behavior of our economy in

1956,

1957, and

1958

Continued

emphasized
on

page

30

^■^>«V'».A^>7,MTrifiSUWfra<fK'^itSbl!HultMMaMi«(Ki^' -»^Jimwwwm'WWiaS.*®!

Volume 191

Number 5934

;

.

(1183)

The Commercial and Financial Chronicle-

.

wholesale prices, and exports all gross
national product now is
were down—
~
""
'
"
* higher than ever before. "By early

1957

alone, industrial end-users
consumption of cotton
textiles by 29%; and, according to
the Pastore Report, the output of

of the Domestic

15

cut-their

Government official conversant with the problems of the textile indus¬

fall," he said, "it should hit the
half trillion dollar all-time high
movements, there really isn't much altitude mark—'the superabunfrom 1947 to 1957 showed a 15-fold of a discernible pattern.
dance target of economists over
increase while the per capita mill
I have attempted to correlate a the years."
•The Department of Commerce,
consumption of
cotton
dropped rise in import wicu tuc market,
from 32.4 pounds to 23.7 pounds, prices of textile securities.
of course, is the Federal servant
Of course there have been other
'
In 1957> total cotton textile im- of industry. It is our statutory re¬
problems/ and; I recognize fully Ports amounted to 143 million sponsibility "to foster, promote,

try insists that they

that

Cotton Textile Industry

newer

By Hon. Henry Kearns,* Assistant Secretary of Commerce for Inter¬
Affairs, U.S. Department of Commerce, Washington, D.C.

national

man

-

fiber

made

and so on, leading me to a conclusion that, on the basis of these

fabrics

-

the result of the vagaries of consumer

are more

lated
•of

leading textile firms have not reflected the increasing volume of im¬
ports and,

as a

recounts what is
-

a

program,.and offsrs the
years

.

I

retary

much

so

rather

time

incidental

1

try

indus^-

The number of mills in

present

the

fascina-.

tion

involved

in

trying

come

s

w

e

to

highly

had

a

situa¬

a

am

Administration,
part, is dedicated

to bringing
peace,
progress and
prosperity to the nation. Facts

will show that this dedication has

produced results—results which, I
must say, are reflected in the current

prosperity

of the textile in-

dustry.
How

;

vv
can

prosperity

we

for

best

the

:

*

.

full

achieve

nation?

How

help the textile industry
grow in strength and vitality so
that it may share fully in the nation's prosperity? It may be fruitful to discuss some of the steps
that can.be taken in solving these
problems to assure the "Survival
nf the Cotton Textile Ttirli.ixrt.rv. "
of the rinttnn TpvtiliP Industry."
Foreign competition long has
we

can

•

been

of

ducers

to

concern

the world

textile

over.

pro-

look at

A

1Q98

etLn

no
P°-t&

The Eisenhower

.

1923,

the

after

income

net

a

After

Henry-Kearns

tion.

of which I

A heavy concentration of imports in particular product cate- turers
can jeopardize those seg- .21%.

taxes

of

«

a

L>egafi

the

volume

of

1

and

books will find that

What

World.
you

towards

tude

is past

is prologue,
same atti-

much the

see

some

of

the

•

—

newly

' Probably the most

in Korea. *
While the total cotton
spindle population of the

_

igln

in

tion

imDOrts

was

,

,;up'

up,

wholesale

pvnnrf„

wprp

prlces

1514

to

to

1814

to

...

no

think

you

:AU

volume

and

apparent effect

don

increasing

had

ness.-

,

in all, we collect, analyze,

publish the kinds of informaa

businessman

is

no^ doing badly. Even last year.
when imports began to rise to
their all-time hieh

the ciens

were

r

•

Deiieve mat tnis country 3

„ood

^reig" trad<: 15foreign trade seng00d f°r America.'
We take this

The Wall Street Journal of Mar.
30, 1959 reported that "Textile

ously.
First of all, it is good for Amer-

companies,

tumbled^ into ica because it is an important part
of the nation's total economy. No
one will argue that the textile
industry is not an important part
of our national economy—it, is vital to ou£: Everyday living. But by

which

recession long before most U. S.
industries, also are among the.
front "runners in recovery . . . this
ilas brought . . . production speedUPS> bulging order books —and

rising earnings."

„

•
The recovery is continuing and
my good friend, J..Spencer Love,
although expressing concern about
the rise in imports, was reported
in the Feb. 5, 1960, Daily. News
Record as painting a bright pictnre for '60 for all of the textile
field.. The textile division of our

the s&m6 token, our country's total
sales abroad, our exports, annually exceed greatly the total salea
of the entire textile industry--and
foreign trade, too, is vital to our
everyday living.,
Over
i

1

to

Wi Ratio

In 1959, the textile mill products '

,iln 1959, the textif

some

the late

in

1600's,

creased
m 1945,

IIow

Is

Business

Helped

:

j

hesitate

to

say

that

were

unwn-

fact,

gained in momentum

as

_

.

_

.

imports were down— ises to be the most prosperous year in terms of total volume and var.Lie,
production, wholesale prices, and fn our history." Secretary of Com- our foreign trade is big business. >
• .
.exports were up;
merce Mueller, right here in CharWe are dependent upon fore gn
system
In 1952, imports, production, lotte last month, related how our "
Continued on page A1
nation

,

from 47%'in 1925 to 76% and the location of cotton_

This

announcement is neither an olfer to sell nor a

any

NEW

of these securities.

1920's—and despite
the British tex-.
industry prospered for these

200 years.
<

Our exports

of cotton cloth dur¬

ing this period of expansion were
of

great importance to the textile

1879S the avnod.ameeVofrycoIteo„r 3X
exports--has -exceeded by far the

Salient
/
,

Problem

;* '.*.'■

,

Other

1879, for example, the indus-

129 million square
yards of cotton cloth, about half
the
total
amount, exported
last
exported

Than

Imports

:

L

'

175,000 Shares
-

1

-

if

'

General Foam

Probably the most salient fea¬
tures. of the economic changes in
the textile

industry have been—
changing percentage of disw
.
£ s£ j
8nt on the

Corporation

COMMON STOCK

The

(Par Value $1.00

per

Share)

•"*

products'

apparent inability of the
industry, due to overcapacity and
The

VOTlun?? °f c°rre3pondmg imports, three-shift operations, to
In
try

prospectus.

cot-

the cries of alarm,

tile

solicitation ol an offer to buy

The offer is made only by means of the

ISSUE

tion

tory into the

gear

out-

pUt to the volume the market will
abs0rb at a profitable price;
The loss of markets, particularly
[n the industrial field, to nontex-

Price $4.00 per

.

Exports rose generally to tile products such as paper and
periodic
peaks
of
205
million plasties; and
square yards-in 1887, 505 million
The m0Unting Inter-fiber cornin 1902, 711 million in 1906, and
petition within the industry.

Share

year.

819 million

in

1920.

In

At the same
cotton

time, the volume of
cloth imports also was ris-

ing—12, million
1879,

and

square

periodic

yards

peaks

of

in
32

million in 1886,49 million in 1893,
65 million in 1900, 84 million in




a

sumer

na-

the

lrJ

mills swung into full produc-

ton

our

picture for all of tion's foreign trade is big business,
industry looks bright. President because actually it is conducted
Eisenhower, in his State of the largely by thousands of small and
Union Message, said, "1960 prom- medium and large businesses. Lut
In

exports were down

looms showed a similar shift from
56% to 79%. Today 91% of the
beginning in 1789, expanded spindles in place are located in the
fairly .steadily throughout its his-- c°tt°n growing states.
and

963,000

Department's Business and D|e- industry employed
year
fense Serviees Administration workers. Each y.e|rive aUveUhrort
Services AHminist.rat.ion
pamts much the same picture.
lion some form of foreign trade.
fromAmericans aerive a livennooa
fpnsp

was

England and the. Middle At-

lantic Colonies

en-

S000,

'

New

to

needs

in foreign trade effectively..
We provide the consultative serv¬
ices he needs to sell his wares in]
the world market place.
We believe that mis country 3
we
relieve
tnat
this country's
gage

will agree that to¬

day the cotton textile industry

nroduc?

ud

were

declining generally after its
The English, you know, were all-time high in the 20's, the spinunsuccessful
and
an
industry die population in the South was
which; had its beginning with a rising. The proportion of spindles
score
of small cotton
plants in in place located in the South in-

developing countries today.

I

•

the 219 million square yards of *
'
a" import competition.
that year to the 61 lml.ion ^qaaie
Finds No-Obvious Correlation
yards of 1929. While running at
t have studied statpmpntQ.ni-'-thp
a deficit during two of the-interjndustry and r haVe studied the
vening years, the industry's net pertinent statistics
I have traced
income "after taxes in 1929 had the monthly'movements of wholefallen to $16.2 million.
rale
prjceg
spindle
population Our nation was hit by depres- imp0rts market prices for' textile*-'
sion, and the next year, 1.930, Con- securities, and other similar facgress
passed >the Snioot-Hawley >^ors> including announcements of
Act. Imports were cut m half, and (decisions by the Government on
the cotton textile industry showed textile tariff and quota questions
a net loss
of $92.6 million, the -and events overseas which possiworst year in its history.
•;
bly foretell of a boost in imports,
I cite these figures and. events ;and I find no obvious correlation.
only to show that an unbiased ob-'• . ~ j
fharHru* thp rrnvprnpntd of
server will find it difficult to note v0tt0n textile mill Droduct i rmorts
much
correlation between
the production wholesale nriees and
health
i i
.health of the II. S. textile indus- expo?ts"on'an* annualbasYs for the
ofthe U. S. textile* industry, the* degree of import com--period 1949 through 1958 I have
petition, and the degree of tariff found that
'
protection.
In rPiatiori tn
vpar

salient feaEngland worked mightily to keep tures of the economic growth of
the upstart colonists in America the industry were the migration
from establishing a textile indus- of the industry to the South and
try which would "destroy" Eng- the peak production required by
land's export trade with the New the two World Wars and the war
history

our

than imnort eomnetition

from

•

.

23%

stock prices.

-on

petition, and inter-fiber competi..

rose

from

rose

Clearly, the

in£' overcapacity, nontextile com-

im-

Se

ro
Sx.arp ueciine, f
irom

12% to 14V2 to 41%.

Stevens

of imports

economic changes in the textile
industry are more the results of
the vagaries of consumer spend-

industry

$90.7 million.

com-

licated

in

still

rates;

an-

to

r

P.

1922.' g°ries

219

square

.

quate to tell the businessman what
steps to take if he wishes to enter
271/2 to 34%.
into the proper channels of distri- '
United Merchants and Manufac- bution and to start soliciting busiJ.

million
year after

reached

Imports

from

rose

ers

ments of the industry. ^Actions* of
yards in 1923, a
Government .'clearly show a
Congress passed the Fordney-Mc- ^een recognition of such problems.
;Cumber
Act
raising
the
tariff:*.
would say, however -that-the

;

with

up

sensible

a

Rut

do

far enough, the mvestigavtion at least will afford an oppor^uni^y t° *ay the facts on the table,

operaVon

reachedkan all-time high in

challenge

and

von

satisfactory to

rnQ(i

produced by the cotton tex-

,tile industry reached a pre-World
•War II hign of $2.1 binion-.
The
..number of active spindles in place
reached an all-time high in 1921.

problems

the

than

itself. The President has ordered
zLl'-fmm r:9 L
in
selective foreign countries
Section 22 investigation to deter-Vn fiq
rose irom s>z to eo known to be existing or potential
mine whether* or not a fee equiva'
Mi11
frnm
14% to markets for United States goods.
ler}J to the export subsidy on raw
. ^one iviiixs rose irom
cotton should be imposed on im- - 16X8 to
.™ supply ratings on mdividWe can
P°rts> however, and while some . Dan River Mills rose from 12% ual firms iiralmost every foreign
m»
feel-.-this investigation
Sn.< to 14% to 19'/4.
country of the world. We can promay feel-this investigation does
Listen to this one: Reeves Broth- vide brief commodity surveys ade-

,

.

more

a

this

the total value of prod-

In 1919
*ucts

Affairs.

admit,
h-owever, that
of

with

industry-

than

must

the

<

.

•

1907, and 104 million in 1920.

textile

on

Interna¬

tional
I

'

'

Cogeneral rise
in imports was a general rise in
of Commerce for Textiles the toial health of the domestic

spend

problems in Washington that some
people call me the Assistant Sec-

for

;

anv

*

data> rep0rts, surveys, * appraisals
Now how did this fabulous rise and other material which business

^ J'^ory affect stock prices? can use. We takers responsibi!Let's look at the 1957-1958-1959 ity seriously. to industry engaged
.Our services
tile producers, the Congress, and ;ugf!f
^several leading cotton in, or otherwise affected by, for¬
other interested parties is, putting textile producers.
eign commerce are many. We can
it milaly, a perplexing pro^eiri iir
ln^1s,trles rose lrom provide the names of foreign firms

it received 30

industry the same advice

,

St0®11 Prices Unaffected

the cotton growers, the cotton tex-

...

head of the Southern Textile Association.

by the then

ago

concentration
few specialized

a

findingYsolution

cotton export equalization payment
.

reached an all-time high
million square yards.

heavy
in

-

nolicv

being done to help the textile industry including vol¬

-

the

I eton't like the two-nrice cotton-

'

opportunities for increased textile exports. He

untary import agreements and

to

imports

two-price
another is re-

and

fields.

result of his recent world investigatory trip, he points

out there remain many

policy

and develop the foreign and domestic commerce ... of the United
of 240 States
" We meet this responsibility, in part, by collecting and
publishing * timely and accurate

square yards. In 1958, the figure
rose to 155. In 1959, the volume

is related to the

one

cotton

spending, overcapacity, non-textile competition, and inter-fiber com¬
petition, than import competition. Mr. Kearns finds stock prices of ;

nutshell, the share of conspending for apparel, as one

example, has dropped from 9.4%
in 1948 to less than 7% today; the
industry has been running at less
than full capacity since the end
of the Korean War; from 1950 to

Copies of the prospectus may be

brand; grumet & seigel, inc.
March 11, I960

■

-

>

obtained from the undersigned

Arnold malkan & co., inc.

tW*K;i4W'WW *<w.hv^ul.m»^f.f»^.^^in^TO|.miriWL

16

(1184)

Financial Chronicle

The Commercial and

•

•

•

Thursday, March 17, 1960

showing of net around the $6
automating, its expan¬ level this year would auto¬
mance that can center on run¬
sion abroad and its intensified matically point up the big
BY WALLACE STREETE
ning a collection of sales sales efforts. U. S. Rubber has spread between the two
counters. Woolworth with a traditionally had a low mar¬
figures.
^fj
4% yield has been figured out gin compared to the competi¬
[The views expressed in this article
Rails put four good
gains to¬ ses for new facilities, lifted to be worth only $100 million tors but seems to be making a
do not necessarily at any time coin¬
gether for the first time this earnings per share from $2.17 marketwise after
deducting turn to get out of that un¬ cide with those of the "Chronicle."
year and when they ran out in 1956 to $3 in 1957 but then the market value of its British favorable niche. And with an They are presented as those
of the

THE MARKET

of steam the

the

little

of

fact- that

the

is

there
age

space

This testifies to its suc¬

a row.

in

cess

ro¬

industrials took

reported $1.97 in 1958 and an subsidiary. Yet its domestic indicated dividend of $2.20, a
bet¬ estimated $2.50 last year. It is stores are being
given a good
ter tone this week than it has on a dividend
basis, however, chance to reach the billion
shown so far in 1960.
with a yield of about 3.7%. mark
in
sales
this
year.
to

over

"

from

AND YOU

...

give the market

*

*

❖

But

-

the

shares

since

ground recovered

when

of

some

pressed

items

the

that

they had reached at least

a

*

Even

*

*

list and

large bundles

v o

prices
1

Products
was

best

*

that

there

Similar
for

still

are

ifi

points

of

names

$

can

be made

of the other famous

some

retailing,

far

such

few

a

absorbed

For

group,

Sperry Rand has

the

really

captured

of

investing public since

issues

in-

Universal

Oil

the

the

of

never

Farm

was

*

listed and it went

from there to

nudge

ifi

$

*

from White Plains, N.

Y. to

❖

ing

in

The

Danbury.

Bloomfield

1

school

and
'■

and

use

'

ij;

American

The

Waterbury,

has

research

building

greater lurgical

will

a

plans

The

the

include

tion

new

the

subject of

much dour discussion

as

much

of

its

work

is

low-

on

larly

comfortable.

The

major

would

them

send

yarn

Veeder-Root,

recently

divi¬

staff

will

now

the concentration

was

the

also

pickup in demand antici¬
pated in the spring which is a
pointed shift in emphasis.
New
.

Look at the Electronics

Electronics

show

continued

least

at

to

part-time

de¬

A

significant decline in the

cost of

borrowing,

as

exempli¬

V

in

Tire companies did. a.rous¬

by the bids for new issues
ing business in 1959 but paid,
recent weeks, did little to
in part, for the lag inauto-

stir

renewed

enthusiasm* sales which clouded the fact
for the
utility stocks and they" that their
up

-steady -growth in
has been in the
replacement - business rather

continue, along with the rails,
as

the

recent

high-yielding section.
'

*

prominent

were

;r

'

'

*

•

in

than

the

market

found

the

There

attention" And

was'some

going good. Here, too, the em¬ being- devoted to Illinois
phasis had shifted from the Power as something
of; a
high price-earnings ratios and changed situation. Illinois
meager
that the

dividends to the fact Power's service

industry had jumped primarily

area

has been

agricultural

in

a

all

;original;:Equipment.
the

dicate that

better

even

total of

growth lines in¬
this year

the

an even

will be,

ever-rising
the

on

replacement

busier

pro¬

for

was

largest

baier

one.

and

outstanding.

LewisHeadsDiv.of

an

Invest-in-America j
Robert

Machine

Company

brook

'

Corporation

quired

it

of

90%

Electric

Stamford

of

has

Lewis, partner of Esta-

Co., New York invest¬
ment banking firm, has been ap¬
pointed Chairman for 1960 of the,

*

Diesel

J.
&

member firm's

ac¬

division of the;

the

outstanding
stock of Ultradyne, Inc., of Albu¬
querque, N. M., manufacturer of
precision measuring instruments.
The amount of the transaction
not disclosed.
'

■-

~

t

•

c*

#

-New." York,

C

was

:

VR*»miblic Fo*l. Inc., of Pa "bury,
has

just opened .a
Salisbury ^
North

new

Carolina.

and

it

'

$2V2
more

with

billion

10

more

years

than

ago

to

than $9 billion last
year

$15 and $20 billion

nual rates

an¬

ahead in the next

decade.
*

if

period when industrial
were

the

utility.

needs

the Home

dramatic facet to

But

customers

new;

have

a

industrial

been

added

steadily and the company, according to some observers,

It

pays

no

dividends but did offer

earnings

per

share

in

return

a

—

been

on

so

the

emphasis has
growth here.
*

^

well

into

the

4% bracket.

that time from 15 cents to 56
cents

downward

❖

#

fact

seems

at

even

as

*

as

any

heavy,

non-recurring




expen¬

the lowest estimates.

ifi

50,000

has

filed

with

the

a

Company of
registration

SEC

shares.

common

covering
Of

this

mittee's

*

expansion and for working capital.
#

ago

to

*

has

been

hose

and

belts

conveyor

others. In the
U. S. - Rubber is

broken

major expansion at Fafnir
ing Company's Newington,

for

from

has

non-tire

now

opera¬

Moreover, U. S. Rubber

shown

analysts apparently stems increase

in

the

third

a

annual

profit margins in

growth

increased per capita

through

bank

in¬

"savings,

bonds, stocks and real estate..
1960

Invest-in-America

program

24

April

through April 30.

CHAS. W. SCRANTON

&

CO.

Members New York Stock Exchange

CONNECTICUT
New Haven

SECURITIES
New

York-REctor

Hartford—JAckson

2-9377
7-2669

Teletype NH 194

is

which

Week,

Bear.- will be observed nationwide

plant.

in,

America's
is depend¬

insurance, corporate and Govern¬
ment

Big

estimated to derive half of its
sales

upon

Highlight of the

#

that

emphasizes

vestment

Ground

sification lines of plastics and
mechanical rubber
goods such
as

1949,

ent

by the com¬
for repayment of notes, for

nationwide

a

educational movement founded

future economic

pany

Chair-,

man.

amount

the sale will be used

Gen-.

Invest-in-America,

the company and

22,000 will be offered by
28,000 by a sell¬
stockholder; Proceeds
from

Com-,

eral

Robert j. Lewis

To the traditional lines, the
major rubber companies have
been adding profitable diver¬

tions.

the part of market

last

up a month
help bolster profits.

interest

on

will

than

year

it

marked

major group. And the lack of

Amphenol-Borg, with

that

top of bright prospects for
demand, tire prices were

:Js

neglected

be

On

among

The store chains have been

new

Co.

the

arid

ing

to

better

* a

Four,
about

in

production for 1960, the

car

be

revisions

*

has
now
developed into a
pinpoint attention strong growth situation. It
given to some of the electron¬ has been able to boost earn¬
ics in recent months
heightens ings steadily, with profits at
some obvious
price discrepan¬ successively higher record
cies.
Ampex, for instance, levels. The company's divi¬
reached the equivalent of $45 dends have been boosted in
last year on shares
split early line with the increased profits
this year. That
periodic increases are
represented a and
good jump from the 1957 anticipated in the future. At
price of between $4 and $8. the present rate the shares

The

jump

-although - there is ' Stamford
chagrin lately over the statement

much

Life

Insurance

:;i

Barnes Engineering

addition;

by
P.

President of

;

material.

on

Worthington,

The

capacitors, pack¬

decorative

a n-

10

March

Republic Foil produces aluminum '

In

ittee,

w a s

William

facility in

plant will house the com¬
pany's Electromechanical Division.'
foil for electronic

o m m

nounced

'

•£

...

America

-

it

.

it,,

Invest-

City
in

-

from sales of little

of

cable filler,
cord. As of
1959,
Plymouth
270,033
common

the

acquired.

aging

producer

twines,
wrapping

acquisition by Veeder-Root
— last
March the Iseli

Consolidated

•

an

made to stockholders of

new

and trucks

cars

roads makes
market

the

as

screws

year

*

years

"

when

a

Swiss
was

Rubber Companies Ignored

fied

,

mand "and

in

made

buy

nation's

shares

of Hartford,
Mac-it
Parts

Lancaster, Pa.,
steel

Corpora¬

has

Screw

second

■

on

the

of

ducer of alloy

Hardware

September
30,
-V'V/,'? Cordage
had

undisclosed amount. This

ing practices.

High-Yielding Utilities

Inc.,

increase of

an

Britain

center.

new

acquired

Company

as

reeling , in
markets,

was

growing

groups.

the first two months'

to

ropes,

technical

New

offer

metal¬

chemical
equipment for

*;.

any profit military business. Prog¬ dend is well covered by earn¬
Where ress has been made only re¬ ings that run more than dou¬
talk of
declining production cently in boosting profit ble the requirement even
in the second half of the
under
conservative account¬
year margins.

other

of

production of new
products. Offices for the company's
be located in the

feet,

100,000 shares of
Plymouth Cordage Company com¬
mon
stock at $58.50 a share. The

experimental

second

square

offer

and

and

new

American

$1.5

new

center.

corrosion

laboratories

of

construc¬

Company,

announced

for the construction of

million

started

in the last year.

25%

Brass

$

Corporation

buildings totaling 41,-.
feet. This expansion
bring Kaman's floor space to

will

employs

if

®

-

been

op¬

square

826,000

*.'■

-

on

000

busi¬

people.
■■

••

has

tion

company

briefcases for

manufactures

it

Aircraft

Kaman

a new

one-story 16,000 square foot build¬

Nevertheless, Sperry stands than some of the glamour
only to IBM in data1 items. It has been priced re¬
processing. Weighing against cently at less than 10-times
The new show of at least Sperry, however, is that the last
year's earnings, a return
mild confidence helped hard¬ business machine volume is of
5%, and prospects that the
en the steels and autos which
only a third of total sales and Results this year will be simi¬
have

one-floor

a

plant.

ing

Digby Products, Ltd., has moved

even

higher afterward.

finish in

to

currently being done in the exist¬

is

and

>

*

*

far

start

the

from

ranges

finished sheets

of

complete.

}•:

value

than

more

expected to take about two years

equipment firms sim¬

statistical

sheet,

rolling

.

the

a

be

to

as

45

sjs

will

plant

eration, in addition to the primary
and
secondary
machining, heat
treating and hardening operation

ness
sjs

The

a

melting of basic aluminum to the

points.

interest

begun

has

Waterbury

minum

more
reasonably Macy and Gimbel. The former
against the accepted has lolled in a range of around
yardsticks. Against the 50- half
a
dozen
points
all
times-earnings price of high- through the ups and downs of
priced International Business the market in the last 14
Machines, which traditionally months, while Gimbel has had
is the high-ratio item in the a
swing of not quite a score
-

Company

$5.5 doubled by the 225,000 square foot
million program to integrate the addition which is expected to be
production of aluminum alloys. completed late this summer. This
The
project, which will double expansion will permit the process¬
Scovill's present output of alu¬ ing of larger size bearings from

present company was
five-figure trade
ilarly have been out of favor
negotiated easily at the formed. So Sperry's ratio is a for a long time to where In¬
'
price posted by the stock below-average 13-times.
ternational; Harvester has
a

since it
on

fact

disturbing ris¬

in

d.

v e

quite

were

without

even

pany

some

showing up both in listed
trading and as off-board
secondary offerings failed to

ing

high tags on some of
equipment com¬
shares similarly screen

Manufacturing

Scovill

of

large blocks priced

some

chill the

The

Connecticut Brevities

ready

the business

the

temporary floor.
.

have moved from $20 to $47
which is a far smaller

well-de¬

showed

only. I

1956

Nevertheless, the market al¬
is appraising some of
wasn't
price the electronic companies at a
overly impressive.
What was more
heartening, appreciation than that of far higher "worth" when their
however, was that there were Ampex, where the growth in sales potential is nowhere
some
buyers around finally profits hasn't been obscured. near that of the well-known
*»*. f<
Woolworth chain.
willing to step in gingerly
The

author

a

!<i.

Volume

191

Number 5934

.

.

*

W'lfWMMmMIt'<t liijWVIVW

Wi^SS,r91'* v'rT^JSl.'JiWWi^W''.

The Commercial and Financial Chronicle

.

(1185)

SOUTHERN

CALIFORNIA

EDISON

64th ANNUAL
1959

FINANCIAL

COMPANY

REPORT

HIGHLIGHTS

%

♦EARNINGS

IncrMM
1959

Common Dividend Rate

Consolidated

0var1958

$2.60

2.7

Earnings Per Share
(Company only)*
«

.

$1,366,097,306

7.7

Gross Revenue

.

.

.

$281,763,942

10.0

$220,804,989

10.1

1907

$81,544,899

11.5

stock.

$43,394,886

8.5

Operating Expenses

.

.

.

Taxes

«

*

«

«

«

«

«

Net Income

.

.

,

Payrolls

.

.

.

.

.

....

«

•

.

.

Total Meters

•V

■

,

,

$56,910,662

Energy Sales (1,000 Kwh)

3,181,000
-

NEW

the

an

kilowatts.

Huntington
which

station

.

•

iv

12.6

V

to

,'

overall

kilowatts.

Deferred

are

two

are

the

first

y

„

*■

v..

,

.

$1,145,622,713:
.18,511,250

,

.

.

.

.

81,560,978:

.

.

.

.

3,487,115

2,688,621;

Stated Capital and
.

Current Liabilities

FINANCING
new money

.

.

.

......

$1,251,870,677

LIABILITIES

Surplus
.

.

.

.

.

.

.

.

..

..

.

.

in

Total

Liabilities

,

556,463,507

537,433,100;
116,289,103!

.

.

.

.

.

.

21,554,494

.

Other Reserves and Liabilities

(In January 1960, $30,000,000 of

$

,

Deferred Income Tax Reserve

January 1959 through the sale of 500,000 shares
of common stock.

-

Dec. 31,1959

Charges

Long Term Debt

Company obtained $29,325,000 of

....

Total Assets

capacity of that

These

.

Capital Stock Expense

new

units to be built in the United States.

PERMANENT

stock

CONSOLIDATED

SHEET

Current Assets .;.

computer-automated steam-electric power generating

The

preferred

;.'

'

.

Investments and Other Assets

effective operating capacity of

boost the

on

common

ASSETS

PLANT

Beach Steam Station

will

the

on

-

Presently under construction at

875,000

dividend

CONDENSED
BALANCE

completion of two steam generating

with

each

215,000

units

basis.

plant expansion program was continued in

1959 with

the

current

Electric Plant

Edison's

units,

.

the common stock and to 1896

The

record of

a

payments extending back to

7.4

3,833,920

System Peak Demand (Kw)

Generating Capacity (Kw)

on

dividend

original preferred stock, which participates with
the common, is equal to $2.60 a share on an annual

; 13.5

;

and

and

4.3

15,698,837

continuous

6.6

1,628,694

.

$3.82

were

Company and its predecessors have

.

.

SHARE

share

DIVIDENDS
The

Gross Electric Plant
.

PER

per

$3.74 in 1959 and 1958 respectively.

8.3

3.80

earnings

.

$1,251,870,677

20,130,473

mortgage bonds were sold to repay $23,000,000 in
short-term
the

struction

.j

j.*?

v


I


'

'

*

•

bank loans

balance

in

will

be

borrowed

used

to

in

December

partially finance

For

1959;

a

copy

of Southern California Edison*8 1959

Annual Report write: A. L.

con¬

1960.)

P. O. Box

Chavannes, Secretary,

351y Los Angeles 53, California.

;

J2

yyti

mm]

SOUTHERN

CALIFORNIA

EDISON

EDISON

BUILDING

•

601 West Fifth

Street

COMPANY

•

Los Angeles 53,

California

-Vv

17

18

%

and Financial

The Commercial

(1186)

Chronicle

.

.

Thuisday, March 17, 1960

.

"

Mr? D.a

NEWS ABOUT

New Branches

•

•

New Offices, etc.

Revised Capitalizations

•

in

Vice-President

charge of the trust department.

'

»'

Hw-f

John
the

R.

Kimberly,

board

Officer

The

Chairman

Chief

and

of

poration,
of

*•

.y.

appointed

First

Directors of

of

National

City

of New York at the board meeting
In

Stockholders

addition to serving as Chair-

-man

or

•

President

-

v.

several

of

Kimberly-Clark subsidiaries,: Mr.
Kimberly is an immediate past
President
and

of

American

the

Association.

Paper

is

at

proposal
March

-

:

A..

capital and surplus Jo $60,000,000.
"tv':''
Mr. George H. Brown, Jr. Presi¬
The common capital stock of the
dent,, said the increase has been
First National Bank of Waukesha,
effected by a transfer from un-,
Wis., was increased by the sale of
divided, profits,
which
account new-stock from
$1,625,000 to $1,now stands at $12,500,000. In addi¬
750.,000. Effective Feb/ 29.: (Num¬
tion
ttie Batik- has * reserves of
ber of shares outstanding 70,000,
$9,300,000.. The overall total of
par value $25.)
capital accounts and reserves is
*
*
*

A

meeting on

v

,

the

on

-

i

-

\

i

..

.

subscribe

to

each

for

mercial

would" enable

which

Bank

of

to

one

Com¬

owned.

12

$81,800,000.

America

North

;

"

tion,

American

Conference

Board

College

of

Appleton,

Ke

member

is

a

of

U.

Council of the
Department of Commerce.

S.

Chase

Manhattan

-

June
in

dividend

Bank,

in

be

dends

as

joined

Bank

in

this

He

dividend

stock

to

year,

the Board
cash

divi¬

be available at the

may

year-end.
*

*

Mr. Milton T. Vander Veer, Chairs
of
the
Lafayette
National

has

been continuously

associated with
the bond department since 1937.
He was
appointed an Assistant
Treasurer in 1955, the year of the
National-Bank

of

Bank of Brooklyn/New York, an¬

Ten

the

promotions

Bank's

as

bank.

.

;

in

made

.

Six

a

%

*

*

of

Al¬

Director.of. the
'

■

The club

Ex¬

of

the

adelphia, Pa., died March 10 at the

of

age

Mr)

75.

retired

Hardt

in

1949, but had continued with the
bank

as

Director and

a

*

i

has

'■

ap¬

:

pointed assistant cashier in the
Metropolitan Department of Mel¬
lon National Bank and Trust Co.,
Pittsburgh,

according

Pa),

to an
Frank R. Den¬

announcement ;by

Vice-Chairman of the

has 119

now

international

depart-, members who have been associ¬
rrient, with George H. Borrmann, ated
with the bank for a total of
Milton S. Coe, John C. Conklin,'
3770 years.
Kendall G. Kimberland, George F..
The six new members, who in
Lang and Gerhard H. Struckmann:
the past year completed 25 years
advancing
to
Assistant
Viceof service,
were
welcomed into
Presidents. Jerry W. Johnston and
the
Quarter - Century
Club
by
Leo S. Martinuzzi, Jr. were ap¬
Everett J. Livesey, President
of
pointed Assistant Treasurers. Ken¬
the bank and honorary President
neth C. Miller became Manager

Bank; training program
in
of 1957, and in April,

November

joined

1959,
ment

as

of

June

Credit

the

Depart¬

senior credit analyst. In

a

last

he

year

moved

of

the

Bank's

branches

in Japan
Buckley became
Manager of the Beirut branch in
and

Alfred

Behrens

appointed

were

Treasurers

partment
wald

in

the

and

Assistant

operating

Herbert

named

was

Treasurer

William

and

in

H.

Oster-

&

%

New

York

#

Trust

Company,

announced

are

Edward

and

tury

1929.

In 1956 he

the

to

Bank

appointed

was

Quarter-Cen¬

annual

the

at

in
an

Assistant,

President

Ernest

P.

Stewart.

Co.;

''

*

Herman

Long

H.

*

Maass, President of
Security National

Amityville,
that

the

troller of

branch

bank

Currency to

in

Y.,

N.

approval from

an¬

has

the

March

banks

the

of

merger

of

officials

two banks.
respective
into formal

the

entering

are

*

of

$84,314,591

Plaza

of Dec.

as

had

Bank

total

$16,322,417
and
deposits
$14,881,299 on that date.
*

John

P.

of

<

Directors

Board

of

western

Bank

&

of

Trust

North¬

St.

re¬

Comp¬
Suffolk

Branch * Manager and
assigned to the Bank's 18th Street

County.

Office, where he is now located.
Mr. Kurtz joined the Bank in

Approval

has

Northern

New

1947.

Watertown, N. Y., to increase their

$

given

York

to

Trust

the
Co.,

dent

the

of

In

$500,000

also

bank

as

Mr.

Meehan

to

came

*

The

Sterling

Trust

by

*

a

*

the

from

March

of

as

shares

of
3.

and
stock

new

$700,000.

$550,000 to

tive

Effec¬
of

(Number

outstanding

70,000,

par

value $10.)

National

National

Company,

of

Bank

and

New

*

*

Feb.

the New

19,

National

Bank,

New

Alexandria,

Pa., went into voluntary liquida¬

effective Feb.

tion,

26.

Absorbed

York,
stock dividend, increased its

*

National

Bank,

-Balti¬

Maryland, will be the

name

.Maryland's newest bank. The

orginated from the proposed
consolidation of the Fidelity- Bal¬
timore
Bank
and
the Maryland
name

*

*

sis

increased its
from

*

of

tional Bank, Plainfield, N. J.,

1.

outstanding
$15.)

(Number

306,000,

of

shares

par

value

nounced

the

Trumpore

election

as

President of
State

of

Na¬

John

Executive

an¬

V.

Vice-

Directors

also

Officer

tive

of

as

a

limited time there

available.

If

you

are

are

some

rare

interested—do

not

needs telling the years you are missing.

quoted.

Chronicle bound sets

delay. Write

your

Prices wijl be gladly

Be prepared with complete sets to better

serve

your

respective

of

Directors

S.

Chief

the

Miles,

Executive

consolidated

Robert

D.

in¬

H.

Harvey,
the Maryland Trust

of

become

Vice-Chairman.

Dobbin, Vice-President
Fidelity Baltimore Bank,

become
have

President.

The

two

*

L.

BECK

Care of Chronicle, 25 Park Place, New York
7, N. Y.

Telephone REctor 2-9570

29.

*

*

*

Charlotte,

(Number

of

Bank

Chicago,

bringing ;to
longest

and

careers

in

and

111.
a

died

close

most

the

Trust

Company
March

11,

of

the

one

the

W.

14

Faison

20,000,

dent
Bank

1924

of-

became

which

later

Foreman-State
He
Bank

joined
in

1931

Vice-Presi¬

Foreman

the

*

sale

became

the

American
as

National

Vice-President

;

>.

name nor

pol¬

changed

according

officers,

who

are

L.

them

100

over

Officers

business.

years

South

19th

will

remain

of

Street

at

Omaha.

in

Of Inv. Clubs
investment club movemerit

is

growing at an extraordinary
rate, according to results of a sur¬
vey by the New York Stock Ex¬
change.
• :
"
The

study

par

covered

period

the

between June 1957, when the Ex¬

change's first

issued,

was

survey

November 1959.

Highlights of the study include:
The number of clubs have more
than

doubled—to

20,100 from 8,-

100.

jumped to 277,000

Membership
121,000.
of

held

stocks

has

tripled—tp $160 million from $54
million. Average monthly invest¬
ment

member

per

around

was

$18.50.
The

Exchange's
survey
was
questionnaires sent to

based
500

of

Yates

on

Exchange member firms doing
with
the
public. It is

probably the most comprehensive
study yet made of the movement,
the

Exchange reported.

There is

*

Merchants

of

new

stock,

National

the

Bank

and

Trust

Company of Vicksburg,
Mississippi, increased its common
capital
stock
from
$300,000
to
$400,000. Effective March 4. (Num¬
ber

of

par

value $20.)

shares

outstanding 20,000,

*

By

stock

a

*

Pampa, Texas, in¬
creased its common capital stock
from $400,000 to
$500,000. Effec¬
tive

March

3.

(Number of- shares

*

By

stock

a

*

value $100.)

Hi

dividend,

National Bank of

increased

par

its

from

from

tive

as

shares
value

of

to

to

a

outstanding

Keith

nouncing

(Number

25,000,

is

A.

bank has

National

is
a

Feb.

H.
C.

29.

of
par

dence : of

was

the

interest in

survey

is

or

one 'more

broad

nation-wide

shareownership. These

clubs—formed
bors

by friends,

business

neigh¬

associates—have

learning the
soundly and
thoroughly. Club members are in
the

opportunity

a

of

process

position

study:

to

investment

possibilities, make their own se¬
lections, and follow the results oi
their decisions.

"It is noteworthy that, as a

Other

more

added

capital of $100,000 and

have be¬

clubs

more
popular
All-female ctubs
10.1% of the total,

and

women.

up

to

nearly double the June 1957
ure.

The

women

The

highlights of the survey:

Investment

issued

The Presi¬

rule,

profits and dividends are re¬

invested."

among

Scribner.

surplus of $500,000.

the

in an¬

investmnet
evi¬

of the

movement

Bank,

Trautwein and the
L.

the

of

results

"The growth
club

(1)

Wyoming,

Funston, President of

New York Stock Exchange,

come

on

investment

of

existence,

stock

*

Cheyenne

Cashier

a

$408,000

new

$20.)

charter

dent

capital

$500,000. Effec¬
26.

of determining

way

but the pro¬
portion having accounts with Ex¬
change member firms is probably
quite high, the Exchange added;

any

Feb.

*

The

First

Pasadena, Texas,

by the sale of

$408,000

in

number

investment

The

common

$340,000

clubs

Na¬

in

outstanding 5,000,

no

total

commented:

*

dividend, the First

tional Bank

National

National Bank.

over

total¬

-

experience in the municipal bond

Vice-President,

as

*

Cheyenne,
he

the

1945,

issues

Vice-President and General Coun¬

*

election

Jr.

illustrious

history of Chicago

in

Lawrence, President;
Frank
E.
Williams,
Executive
Vice-President; Patrick H. Rensch,

of

Commercial Bank,
C., announced
on

N.

March

Vice-President, American Na¬
tional

be

new

Leonard

Louis,

capital stock

*

Spiesberger, 80, senior

An

located

business

and also

Herbert T.

In

EDWIN

South-

St.

$200,000. Effec¬

outstanding
$10.)

The American

stock

equal rank.

banking.

clients. It pays!




chosen

-will

the

*

to

Feb.

H.

the

will

For

of

will

Co.

the

Hooper

and

President

Tilton

^

Board

elected

stitution.

of

name ,was

»of

The

banks.

will

YOUR OPPORTUNITY...

in

common

$100,000

separate meetings of the Board

Chairman

Mr. H. Douglas Davis,
the
Plainfield
Trust

March

The

Co.

Trust

icies

for

later

stock dividend, the First Na¬
Bank of Prestonburg, Ky.,

a

By

*

bond

Neither the firm's

the

Baltimore

of

capital stock from $4,500,000 to $4,590,000. Effective as

common

and

burg, Pa.,
*

is

alone, since
has handled

company

individual

Volume

By

by First National Bank in Greens-

at

the
600

and

tional

value

Alexandria

Nebraska

In

from

resolution of its shareholders

a

capital stock from $2,280,000 con¬
sisting of 80,000 shares of the par

consisting of 92,000 shares of the
par value of $30.00 each.

years.

examiner

Bank

*

shares
❖

.value of $28.50 each to, $2,760,000

Bank

...

21

Missouri

,

in 1941.

for

bank

a

of

capital stock

$550,000,

to

-

sale

the

by

office

California.

1922, Mr. Meyer started his

Mo.

for

been

1956, Mr. Meyer had been Presi¬

land, Pa., by

more,

si:

Prior to becoming Chairman in

side

stock dividend in¬

employees. Business-

half the United States.

additional

The

Co.,

Bank and Trust Co., New Cumber¬
a

18

are

covers

.

Meyer, Chairman of the

Vice-President of the

common

there

*

State

its

1941

31., The
resources

was

creased

originated in

^

of

career
*

was

Security-Mutual had total re¬
of $93,206,920 and deposits

Bank

1.

This firm

sources

Wilkes-Barre.

*

re¬

the firm in

by Mr. Schweser as a1 one-man
operation with a main purpose of
municipal
underwriting.
Today

208

negotiations for the merger.

the

open a new

Wyandanch,
%

of

E

advisory capacity.

an
«

with

to

with

a

The

Cumberland County National

The

By

*

Island's

Bank,

National

of •'Wilkes-Barre,

Bank

Effective

on

—.

ceived
came

Searle.
the

elected

are:

the

Cobb

S.

of

Club

nounced

Board.

Second

associated

agreed

and Plaza Bank of St. Louis, Mo.,

Bank and Trust Co., St. Louis, Mo.

Louis, Mo., died Monday, March 7.

Pa., changed its title to The First
National

from

Officers

by
Korace CJ. Flanigan, Chairman of
Mr.

Bull, Wil¬

Marcus

Taylor; Vice-President, Clarence
R. Foulkes; Secretary, Martin J.
Conneely; Treasurer, George W.

Assistant Secretaries of

Manufacturers

Fox,

dinner

Appointments of Walter A. Cobb,
Stephen J. Kurtz and Joseph J.
as

J.

adminis¬

personnel

Trust

*

include:

..

J.' Macdowell,
Bertram L.
Buskirk, Douglas B. Nevins

Van

de¬

tration.

Meehan

David

members

new

Assistant

an

First

and

*

liam

Herman

club.

The

J.

Lebanon.

Cade

the

of

The

#

main

has

for

the

Security-Mutual

the

of

Directors

by

.

*

Schweser

sel;
Marshall J., Barlow, VicePresident; William March, Secretarv-Treasurer; and Mary Gene
Troyer, Assistant Secretary-Treas¬
urer.
In total, these officers bring

made

being

are

to

Metropolitan Department as a
staff assistant in
the Marketing
Division.
fvr

Mr.

equal share basis

to

$300,000

si:

the

its

founder, Robert

to $400,000, and
also by the sale of new stock from
$400,000 to $500,000. Effective, as
of March 4.
(Number of shares
outstanding 50,000, par value $10.)
from

bank.

Mr. Shallcross entered the Mel¬
lon

;■

a

Plans

been

.

Shallcross

C.

*

*

member

a

Executive Committee.

of the

" '*

Club of The Dime Sav¬
ings Bank of Brooklyn, N. Y., was
announced.

and

Board

President

-

on an

ing millions of dollars.

.

*

members of the Quarter-

new

former

and

stock dividend, the First Na¬
tional Bank of Stevens Pqint, Wis.,
increased its. common capital stock
By

A

....

Hardt

the

of

Vice

'

Philadelphia National Bank, Phil¬

ton,
....

Century
*

were

appointment

bert J. Moore

Man¬

\

,

the

nounced

hattan merger, and was advanced
to
Assistant
Vice-President
in
1957.

Chairman

ecutive

John

'

*

man

Chase

William

J.

*.

.

AA

*»

/
'

the .Chase*

1936.

The

on

(' *

*

ment of John C. Senholzi to Vice-

Senholzi

a

addition

President in the bond department.
Mr.

and

vote

stock divi¬
2xk % stock

December

Directors.

will

New York announced the appoint¬

national

also

a

when and if declared by
6f

The

in

dend

*

*

will

proposal for

a

Business

the

Mr.

standing.
Stockholders

Wisconsin.

Advisory

*

r

Lawrence

and

*

•

currently has 504,275 shares out¬

Products

Forest

Industries, the National Industrial

i/r

Bank of
changed its title
to' Security First. National Bank
of Sheboygan. Effective March 1.
■

,

stockholders

trustee of the Rockefeller Founda¬

vote

in¬
pur¬

from

company

President

Sheboygan, Wis.,

f

Omaha

banking firm, have

the

chased

National

Security

The

Company,

vestment

Schweser,

1

An increase of 42,023 shares is

;

share

a

will

special

a

21.

proposed

Pulp

He

increase in

„

A

March 15.
'*

;*/,; V-i

Di¬

of

Board

authorized an increase
$5,000,000 in the Bank's surplus
account. This brings the total of

Schweser

.

an¬

of

capital funds
of approximately
$1 million, it was announced by
Jacob Leichtman, President..

Bank

the

has

Pa.

March 1.

Nebraska—A group of
employees of the Robert E

key

Bank of Barrington, 111., changed its title to
The First National Bank and Trust
Company of Barrington. Effective

.

•

OMAHA,

*

.*

*

rectors hast

York,

New

that

nounced

.the. Commercial Bank

America,

have recommended an

Cor¬

Director

a

North

of

Executive

Kimberly-Clark

was

Philadelphia,

Bank,

.

Purchase Firm '

First National

The

The Girard Trust Corn Exchange
*

Schweser Key men

in 1957.

Vice-President

charge of the, trust department.
Mr.
Trumpore was formerly in

{«

that

in

Bank

the

capacity for *29 years, rflq -;wqs
named
Chairman of the Banks
loan committee in 1952 and Senior

,

Maxwell

G.

and

to

Morse

R.

v.t s,

promotions

Vice-President

BANKS AND BANKERS
Consolidations

the

nounced

served

and

.also an¬
of C.
Northrup Pond and Russell C.
Doeringer to the post of Senior
President.

number

members

of
in

individua
clubs

these

increased to 28,254 frond

(2)

Total

for all clubs

monthly

6,507.

investment

jumped to $5-1

'..v.-.

n+jtfjei-j■, U8pjp>
\v%"^,\

Volume 191

Number

5934

i

.

Ttirmrr

mm

lftWC? '7^. nw,-w

iiiiiri

1

iinnr"*'-''!"''simww^wwiiwiwwiiiMwi.i.....-,,

The Commercial and Financial Chronicle

.

(1187)
lion

in

November

lion

in

June

(3)

from $2.1

mil¬

1957.

monthly invest¬
was
$208; more
three-quarters of the clubs

ment

club

per

than

invested

less

than

$300

monthly.

(4) The average club had 14
members in November, compared
with 15 in mid-1957.
(5) The average club had stock¬

holdings worth $3,450 in eight is¬
sues.
About 83% had
holdings of
to

$10,000.
Some
16%
had
holdings from $10,000 to $99,999.

up

Three-tenths of

one

other

countries.

led

clubs,

up

(7)

all

passed

26

York

with

2,425

from 776 in 1957.

Among

cities,

Detroit

take

first

New

York

York

Chicago

to

place

- in
total
clubs;
1,186, Chicago 1,-

had

&

Co., 42 Broadway,
New York City, New York money
and stock brokerage
concern, has

the

New

announced

dle

account

for

the

York

Stock

Ex¬

general

Crawford

will han¬
expanded insti¬

tutional

The

Mr.

Stuart, who has been

ber

of

company,

New
an

York

a

member

Stock

of

Exchange

the

and

associate member of the Amer¬

ican Stock

than

Exchange, reports that

half of

H.-Blair's
business

the

the

department and

New

change since
firm

York

The

the

on

firm's

three

of

other

general

Ortmann.

partners

Louis

company

partners.

All

H.

W.

Miller,

have

B.

FT.

expanded

firm's

expanded

H.

Abrams Opens

LEE,

of

Wilson Avenue to engage in
curities business.

a se¬

N.

J.

—

William

is conducting a securities

business

from

offices

15

at

Investment Bankers
will

hold

under¬

Charles Mil¬

be

short

at

this

(8)

Main

objective

of the clubs

of

Investors Planning Branch

PALO

Lyon & Co.

been

BUFFALO, N. Y.—Investors Plan¬

800

Welch

ning

securities

business.

Raymond

R.

opening

a

Lafayette

branoh

America

office

is
10

at

Square.

formed
Road

more

was

Comm. Stk. Off d
Brand, Grumet & Siegel, Inc. and
Arnold ' Malkan
&
Co., Inc. on
commenced

public

a

offering of 175,000 shares of Gen¬
eral
Foam
Corp. common stock
(par $1) at $4 per share.
Of the net proceeds
loaned to Can-Do,

$90,000 will
Inc.; $200,-

be

000

will

chase

be

applied for

of

the

pur¬

foam

manufacturing
equipment including storage tanks,
systems and installation

conveyor

costs;

$15,000

will

for laboratory

ment;
the

and

$30,000

payment

be

and

expended

ANNUAL

REPORT

testing equip¬

will

be

used

cancellation

of

$39,500 obligation; and the bal¬
ance
of $265,000 will be used as
additional

Year 1958

On

working

Automobile retail

Dec.

voting stock of The Schwab Rub¬
ber
Co., Inc.
and
The
Schwab
Co., Inc. The company and
subsidiaries since

tion

have

The

been

company

have

their

privately

incep¬

Loans

to

68,237,788

125,112,287

146,787,973

23,937,528

26,750,638

.

9,771,619

12,013,883

,

$405,472,176

$509,884,361

$

9,658,694

$ 12,470,023

$ 58,025,418

$ 72,649,174

23,783,389

31,011,853

12,500,612

18,466,211

4,830,000

5,525,000

6,452,777

7,020,642

finance

owned.

and its subsidiaries

.

•

....

companies and others

.

Total

principally engaged in
of purchasing, proc¬
essing and distributing foam rub¬
and

$256,094,079

60,526,709

.

.

business

ber

$186,124,033

,

Automobile and other wholesale

been

the

.

.

Consumer loans

Latex
its

/

..........

Other retail

15, 1959 the com¬
acquired all the outstanding

pany

Year 1959

LOANS AND DISCOUNTS OUTSTANDING

capital.
The company was incorporated
in New York State on
Sept. 22,
1953.

SUMMARY

for

a

synthetic

AUTOMOBILE, FIRE, AND CASUALTY INSURANCE

foam products.

Net

J. R. Holt Branch
SALT
Holt

LAKE

CITY, Utah—J. R.
Company has opened a

and

branch

rity

premiums written

office

Bank

in

the

First

Building

EARNINGS

Secu¬

under

Total income

the

.

...

management of Gilbert X. Hill.

Operating income (before interest)
Salik Branch
BEVERLY

HILLS,

,

.

.

Interest and debt expense

Calif. —Salik

U. S. and Canadian income taxes

& Co. has opened a branch office

....

at 251 South Robertson Boulevard
under

the

direction

of

Robert

Net income

E.

•

Veillette.

Net income for

Lester, Ryons Office

common

stock

WHITTIER, Calif —Lester, Ryons
& Co. have opened a branch of¬

(after preferred dividends)

fice

Average number of shares outstanding

at

under

C.

14609

the

Whittier

Boulevard

management

of

John

Earned per

Tanza.

.

.

share

Dividends per

Westheimer Office

...'..

$

6,116,193

6,732,082
1,294,274

.......

$4.89

$5.20

$2.40

■

share

$

1,250,000

$2.45

IRONTON, Ohio—Westheimer &
Company has opened an office in
the

First

under

National

the

Bank

direction

of

Our subsidiaries include:

Building
Harry C.

Copy of complete

Grimes, Jr.

C.

>

C. Newton Kidd

Annual Report

available

request

Kidd, partner in Stein
Boyce, Baltimore, Mary¬

&

land,

passed

away

on

February

PACIFIC

FINANCE

Vladimir de Gravenoff

Vladimir de

Gravenoff, associated
Sterling, Grace & Co., New
York City, passed away on Feb¬
ruary 21st.
with




•

621 South

CORPORATION

-new york financial office:

Hope St., Los Angeles 17, Calif.
15 Broad

St., New York 5, N. Y.

Pacific

,

'

Corporation

Marathon Insurance

executive offices:

'

First Credit

Olympic Insurance Company

22nd.

:

Merchants Bank of Detroit
,

on

Newton

Bros.

*

Pacific Industrial Loans
I

:

.

Pacific Finance Loans

.

Company

Fidelity Life Insurance Company

Pacific Finance Corporation of Canada Ltd.
Pacific Finance Credit Limited (Canada)

Pacific Finance Acceptance Company Limited
(Canada)

with
to

offices

■

at

in

engage

Partners

Lyon and M.

Lyon.

General FoamCorp.

10

anniver¬

ALTO, Calif.—Lyon & Co.

has

capital
appreciation.
Investment experi¬
ence
was
cited as the prime ob¬
jective by 27%. The balance em¬
phasized dividend income.

March

silver

East

Form

of

Asso¬

Anni¬

gathering.

sary

Railroad Avenue.

Corporation

25th

versary Meeting at the Sheraton
Dallas Hotel, April 10, 11 and 12.
A gala program has been sched¬

011 and Detroit 870.

than 70%

its

uled, including a field day with
plent of golf, and the business
sessions, while interesting, will

Wm. Kerwin Opens
Kerwin

the

ciation

N.

J. — Hyman H.
Abrams has opened offices at 207

general

as

brokerage, department,

money

the

securities department.

Texas IBA Group
25th Meeting
DALLAS, Tex.—The Texas Group

H.

Robert Miller will head

Blair's

in

ex¬

been

ler continues as head of the firm's

Co.; Walter C. Craw¬

ecutive
customer

the

Kenneth

three

writing department.

are

Lieberbaum, formerly with

Dreyfus &

Robert

- are

with D. H. Blair & Co.

D.

as

be

JAMESBURG,

Charles J. Miller and

a

financing and underwrit¬
ing small and medium size growth
companies.
the

Ex¬

floor

ties for

recently joined

Stock

Ortmann

continues

1940, will represent

century and,
in addition, will expand its facili¬
a

mem¬

a

Exchange.

business it has performed for

more

D.

Mr.

Secretary-Treasurer and will
given the new post of account

management division
individual
cus¬

reorganiza¬
tion and expansion of its facilities.
a

and

firm's

Mr.

tomers,

New general partners who have

New

and

Blair

or more.

New

others

H.

it will carry on the money broker¬

50

the

of

change. Mr. Lieberbaum will head
D.

age

(6) Clubs are located in all
states, plus 36 in Canada and
State

Reorganization

ber

cent had

per

portfolios worth $100,000

in

ford, who was associated with
Schoellkopf, Hutton & Pomeroy,
Inc., and Clement M. Stuart, mem¬

D. H. Blair & Co.

Average

19

E.

a

are

L.

ftWSBa*tir^>mMmmamekr^r!~^WV>W)i»

20

«« W* -|

ITir'nwwmi

(1188)

the

Is

'

most

still

questions Dow

Theory's assumptions

tivity and his analysis puints
of the averages

stresses

positing

full

a

scale

theory is related to business

our

decline

business

precluding the likelihood of

and

deflation.

any economic

for

reason

comparison

major

a

by

Dow

many

Theory has been used
followers of the market

during the last 60
it

should

be

and

years

examined

basis

that

the

on

1

to be too critical of the
of these

men

of

people

the

lecturing

and

and

viewpoint

women

Product

Industrial

the

last three major reactions are

directing policy,
writing belong to

listed

GNP
-

have occurred
in

our

Production

of

the
are

'

*

1929

omy.

104.4

59

381.17

198.69

91.1

49

294.07

157.51

1931

This

76.3

40

194.36

31

88.78

1932

58.5

named

1933

56.0

37

108.67

after

Charles

1934

65.0

40

110.74

72.5

47

148.44

56

184.90

Dow
and

of

owners

A.

Nelson

;

of

1900

and

1902

to

58

155.92

67

152.80

111.84

125.8

87

133.59

106.34

159.1

106

119.71

92.92'

192.5

127

145.82

11-9.26'

152.53

134.32

211.4

125

107

195.82

90

212.50

100

186.85

1949

257.3

1950——

285.1

112

120

276.37

345:4

phase according to the Dow
Theory
precedes
the
inevitable
bear market which will last about

the preceding bull

as

market.
>

The

writer

scale bear

ble.
to

It

questioning

market

than

shall

never

it

be

can

have

witnessed

was

is

139

488.40

521.05

442.5

143

520.77

419.79

441.7

134

583.65

436.85

An

;

indicates

using

of

the

the / above. sector.

in

said

Product

contains

items

to

ments

the

the

and

in

the

often

averages

relates to him.
Federal

Industrial

Dow .Torres

381.17

*

of

pend

31

28

43.9

90.8

1938

6.1

4.4
2.6

only

what

express

believes
can

that the

assume

is

257.3

„1——

1949

one

assume

the

.

161.60

0.0

7.

0.0

6.7

1953

363.2 ;

125

% Decline

market

1957
1958

so

believe

bas¬

are

their

opinions upon the his¬
approach without recog¬

torical

nizing the changes that have
curred

in

Those
market

pared
still

our

economy.

who

is

believe

inevitable

to the

that
can

economists

expecting

sion.

Readers

a

well
was

in

1957

1953

bear

a

be

com¬

who

are

full size depres¬

are

the pessimism that

1949,

oc¬

and

aware

many

financial writers,

bankers, and

even

three

economists.

In

these man were
proven
wrong
since
business
faded
to
collapse as they had
m-dcipated.
It is not quite fair
years,




*

31.56

•

'

-/regulations
.

.

Decline

9.

,

.

is

.18%

419.79

6.2

From

the

above

data

it

is

evi¬

variation

in

every major decline in
the market has been accompanied

shown

a

by

with

that

a decline in industrial produc¬
tion. Dow Theorists would expect

the
and

averages

rightly

reactions
that

so.
it is

there

to

reveal

this

In comparing these
been

reactions

considerable

as

1937-38

1945-46__

21.3
15.9

industrial

Below
of

are

times

the

shown

the

decline

a

our

Percent Decline

Dow Jones

Comparison of

Industrials

Rate of

now

operates under

—

inflationary

period allowed to
forward
without
some

prosperous

*

49.0.

23.2

.

change

have

discretionary

controls.

Automatic stabilizers include
those factors that tend to
balance
the economy without
any positive
action by government bodies.
This

includes unemployment
old age
benefits, and

group

benefits,
come).

6.7

16.3

1953-54

6.7

13.0

1.9

1957-58

6.2

19.3

3.1

2.4

is

illus¬

The least effec¬
is

the

Social

not

reduction

in

income

reduction

of

the

both

tax

by

Income

The
and

results

amount

in

paid

the; employee

a

in

and

Tax

income

as

Stabilizer

a

tax

>

(both personal

corporation) is

stabilizer of

a

considerable magnitude.
The personal income tax is very

important as a stabilizer, since it
progressive that is, the tax pay¬

is

ment

not

becomes larger with income

only

under

that

in

also

in

time, the

from 20% for incomes

$2,000
in

are

but

amount

At present

91%

to

of

excess

incomes

on

$300,000.

How does the income tax act

as

stabilizer? The income tax, since
it is progressive, tends to reduce

a

the

disposable

income
For

the

.

income

relatively

thereby curtailing

.

.

instance,
of

come

20%
in

same

The

(withholding taxes

and

in¬

upon income and is paid
by the
employer. In periods of high busi¬
ness
activity, the purchasing

not

disposable

cause

an

income

amount, due to the

posable

income

duction

in

fect

is

of

pro¬

reduced

This

—

slump the

a

income

will

reduction

same

income.

will

in

not

re¬

cause

disposable

reduce

ef¬

the

on

consumption of a decrease
in income—which affects the Na¬
tional
As

Income.

far

cerned,

the individual is

as

layoff of

a

few

a

con¬

weeks,

although serious, will not be felt
as

much

because while work¬

...

ing he has been paying withhold¬
ing tax, and, because of the layoff,
a
refund of the excess payments
will be coming to him.
Also, there
probably will be a reduction in
the

rate

of

the layoff.

This

of

because

payment,
"

factor, combined with

un¬

employment
benefits,
makes
a
layoff less serious and possibly
may curtail production

by encour¬
aging the employee to remain un¬
employed.
The corporation tax—which has

justification,

source

except as
a
of additional income to the

government—also tends to

act

as

stabilizer
since losses can be
accumulated against profits. This
tends to keep dividend

a

.

.

.

payments

more

stable.

bilizers

three
will

sta¬

automatic

tend

to

keep
the
In fact these

economy in balance.
stabilizers would probably do the

job completely if it
other factors.
The
as

a

success

of

were

the

not for
tax

income

stabilizer

depends upon the
expenditure policy of the govern¬
ment. The excess taxes
of pros¬
perous

years

reduce

debt

should

be

should
.

.

.

Our

economy,

are

used

as

in

to

debts
lean

insufficient.
well

economies,

to fluctuation in

This

be

whereas

accumulated

years, when taxes

capitalistic

unemployment tax is based

increase in in¬

an

will

gressive feature of the tax. There¬
fore, in a prosperous period, dis¬

—

we

2.3

1948-49

ever,

These

our

taxes

1.3

be

a flat
progressive.
How¬
payments are made only
income is earned, so any

when

being applied.

1.8

89.0

/

Tax.

stabilizer

a

and

little

economy?

economy.
No longer
recession allowed to
go on its
nor is an

in

the averages exceeded the decline

in production.

' ■*

on

economy, there are two
types of influence at work. First,
we have the automatic
stabilizers

so

number

47.4

we

today.
Old
age
in the future. What
the
effect
of
these

slowly.
These however, are not
enough to give prompt action

average.

Production

"

is

as

them

were

been

brakes

comparison of the de¬

not as large
Unemployment

unknown

that tend to regulate the
economy

the

discussed

be

to

as

rate

income

production

in

Industrial
Year

1929-32

were

our

the decline in the industrial

cline

Percent Decline

Reserve

functioning for

was

today.

as

of

19.3

these

had

of these

managed

and

fact

interesting to note

has

by

Federal

been

at that time

factor

In

dent

the

Furthermore,

decline

100.98

,

.

we

decade—but still additional
were found to be neces¬

a

move

.8

% Decline

13.0

.

scope

of regula¬
exist, and, to the ex¬

Our nation

520.77

7

1929,

was

1929,

changes

a

4

In

positive program

has
'

38.30

.134

this

definitely limited
and, in the main, was to pro¬
the public from monopolistic

think

293.79

6.7

to

by the Social Security Tax

the

benefits

(1953) 255.49

143

that there

type of automatic sta¬

and Income

tive

more

business

whereas, during

tax

of

b» .rinessmen,

all

'

9.

.5

,

generated

by

v

•

441.7

that the emphasis placed upon the
third phase is not justified. Dow

ing

•'

442.5

The writer believes

Theorists who

2.0'

Decline

must exist when the
economy does
not justify the
existence of the

bear market?

..*

for

outstanding factor that has
changed during the last two dec¬
ades
has been the influence of

a

16.3

134

361.2

•

that

The

sary.;

193.16

Decline

true

controls

23.2

.

97

.

% Decline

public

have

oocur—but your great, great
grandchildren might be very old
before it happens.

In

averages

bear

a

.

104

253.3

going to happen, how

correct

at

economy

is

It

System had

49.38

15.9

.

bilizers

trated

is

ited.

" 163.12

17.
♦

.

1954
we

7

The last

find

result of this factor.

as a

increase

benefits

able in statistics.

our

deflation.

over

Decline

upon

arrive

it

exist,
definitely lim¬

49.0

\

we

tendency

a

of

212.50

90

is

stabilized

business,
retirement

accept

Thus

benefits.

slow

tendency for

a

to

consumption.

*

209.2

% Decline

..

in

tion did not

_

de¬

but

.

.

tent that any regulation did
the influence was

95.45

107

of

periods

individuals

Many individuals have been ex¬
pecting a'serious decline in busi¬
ness activity with a
large amount

A

98.95

21.3

213.6

1946

194.40

13.

In

there will be

as

'

48

'

even

Banks

to

.

practices and to protect the health
of the individual.

89.0

61

5.6

% Decline
1945

339.95

■"*

85.2

Decline

1948

unsound

are

regulations, but the
,

V

41.22

47.4
'

a

developed \hrough the

solutions without considering that

tect
45.9

% Decline

the
information
of
their directors to determine
policy
before the information is avail¬
If

"

.

Decline
as

all

been

impossible

.

market.

For instance

7,

'

58.5

because of high wages
good working conditions.

occur

and

This does not imply
principles of economics that

Industrials

59

a better opportunity to
possible retirement will

government.

during the last 30

•

we

forecast

Reserve

market

Production

1932

slump in business long before the
general public is aware of it.' This
happens because its expresses the
knowledge of the individual as it
the

the

104.4

—:

disappoint¬

knowledge

participants

The

in

years*.

any

that

the

may

are
comparative
figures for 'the- different reactions

,

by followers of

hopes,

reason

GNP

Year

1929

the Dow Theory that the averages

the

*

the

a

1930.

is recognized

express

enough

*

conceal

1937
It

only the
industrial production will

index of

advisability

that

will have
work and

percentage.

factors.

index of industrial, be used..
since the Gross NaListed
below

additional

one

depression

a

For.

and

65, there is often
to whether or not
to retire. In periods of high busi¬
ness activity, the "individual of 65

changed.

the

production
tional

r

in

rounds

,

examination

figures
of

/

462.35

...

dependents

to

as

rate ranges

years

388.20

143

1958—

inevita¬

impossible for any
that it will not occur

more

391.7

any'

age

question

horse

have

279.87

414.7

Changed

buggy.

that

255.49

-

his

make

and

the

is

say

293.79

404.39

greater variation in the industrial*

is

validity of this assumption that
full

134
125

1957—

during this
phase that speculation reaches its

This

363.2
361.2

Have

Using economic thinking of the
as futile as for a physician

to

256.35

1956

It is

peak and there is little regard for
the intrinsic
value of
an
issue.

long

292.00

At

factor.

ap¬

past is

238.99

1955—*

..

as

124

Factors

Economic

196.81
'V

1954—a—

questioning

historical

the

of

without recognizing the
that
fundamental
changes

have occurred during the last two
decades.

161.60

235.47

328.2

1952

Theory but only the conclusions
regarding the third or last phase

half

200.52

1951—

the fundamentals back of the Dow

bull market.

97

1953—

not

basis

fact

165.39

*

occur

of

retired individuals

proach,

163.21

193.16

232.2
257.3

recession

employer.

163.12.

104

under which

operates.

economy

the

151.35

209.2

1932.

is

121.44

213.6

1947.

The theory was further

writer

;
••

of

Decisions have been made upon

91.1

■1948

1902

developed by Robert Rhea who
published his book Dow Theory in

a

our

100.6

1946

a

This theory was tested by
W. P. Hamilton who wrote for the

of

98.95

1945

Charles

Wall Street Journal between

The

113.64

158.41

1944

,

writings

between

1929.

194.40

48

1943——

Dr. C. H. Gillett

theory.

and

61
■

period
magnitude.
Payments
a

Security Tax—since this is

conditions

economic

1942--M.—

and

the

85.51

1941——

_

Dow

50.16

1940.

Mr.

reduced

85.2

1939

the

Barrons.

90.8

1938__

Street

Journal
S.

1937_____

Jones

Company,

Wall

—_

1936___

than pro¬

more

uncertainty that has been
experienced by businessmen, in¬
vestors, and others during the last
decade, especially—is largely the
result
of
misunderstanding
the

'

1935

the

as

founder of the

much

so

The

143.11

w

who

of

index

duction in 1957.

96.71

82.7

Dow

occurred in 1957
declined 3.1

averages

the

deviate

41.22

theory

in

what would

of

reverse

be¬

are

.

73.79

was

H.

index

..

1930

econ¬

the

and

averages

production.
Following this decline the indus¬
trial average advanced over 50%.
The question that must be an¬
swered is why did the averages

Low

r

than paid, which is

the

im¬

deviation

greatest

production

times

,Dow Jones Industrials

High

■

the

between

below.

Industrial

Billions

'•,/

Year

The

portant.

of

for

These data

student of the market the

a

when

1929 to 1958.

years

ing collected

not

20%.

For

Na¬

index

Production

most

as

and

only three reactions in 30 years
the decline in industrial ex¬

ceed

the

For

compari¬

a

economy.

did

of

changes

now

order.

dustrial average to the Gross

tional

The

in

re¬

more

a

the

in

a

is made of the Dow Jones In¬

son

bear market.

is

of this study

purpose

funds

duced—since

(especially the
latter) tend to act as a stabilizing

in

Theory is related to busi¬

activity and at this point

ness

He

of the nation is being

power

Again in 1937
and 1946 the same thing happened.
It is interesting to note here that

to

group

It is the writer's contention that

the Dow
a

agrees our economy is
subject to fluctuations but explains governmental automatic and dis¬

cretionary intervention forestalls

tend

provide a better
in business, gov¬
ernment, and education.

the greater variations in the changes

economy

time

in

Thursday, March 17, 1960

important to remember. The great
bear
market of 1929 only pre¬
dicted what was going to happen

approach has received
and more attention and will

informed

ac¬

than in industrial production. The investment adviser

tire change in

serious

up

1946

Since

economics.

classical

declined 89% but indus¬
trial
production
also
declined
47 7% or 1.8 times the decline of
industrial production. This fact is
averages

in

believers

strong

.

market
he
inevitably
thinks of 1929. From 1929-32 the

instructors

economic

.

bear

a

the income
more

Author

bear market. He contends that the

over

their

were

-

•

group

basing

time

By Dr. Clarence H. Gillett, President, Gillett Investment Service,
Inc., Riverside, III.; Associate Professor of Economics, University
of Illinois

age

are

.

investor thinks of

Whenever the

40 years and
decisions either
on past experience or on teaching
prior to 1946 and even at that

Bear Market Inevitable?

a

Financial Chronicle

The Commercial and

is

as
all
subject

business activity.

is a necessary
results whenever we

"evil" which
depart from

barter economy. However, no one

Volume

191

Number 5934

.

.

The Commercial and Financial Chronicle

,

"21

(1189)
would
so

to

want

resort

to

curities.

barter,

must live with the, business

we

cycle.

basis,

;

,y. ■
The business cycle is
composed
of four major
phases
pros¬
perity, recession, depression, and
These

phases

will

tive

1929.

occur, but we do not
have a depression like

far

the

as

ness'

certainly

1953.

and

as

good

was

:yy
:
y
fluctuations

tration exerts
ence

years.

as

busi¬

from

more

ean
no longer
absorb the
production at the existing prices.
Then an adjustment period• is es¬

I

r

can

be

effec¬
level of

require
sider

Adminis¬

used

tremendous influx

definitely

industry
has been

loans

must con¬

we

legislative acts that
affect

policy.

been

can

be

economy—i. e.,
Fiscal
policy
in¬

our

government. An increase-in taxes
with

expenditures remaining

same

real

on

now

have

cludes the actions taken regarding
income and expenditures of the

the FHA's liberal

regarding

legislation

no

to

fiscal

the whole economy. The

by

not be ignored.
discretionary policies, that

considered and

—

.

can

Those

very

Housing

a

cies

a

of changes, in FHA poli¬

will

be

a

deterrent

to

the

pros-

perity—since the government will

are

important

the

housing.

largest
The

and

been

selling

wise

price..

the

than

terms; have

point

advisability of

decrease

a

in

expenditure

will have the same effect.

still

Thus

in

this

case

it

of

a

is

evident

boom

the

that

could increase taxes
business would
vate

the

government

Also,

desired

taxes

to

be

that

25%

the

economy
and ex¬

reduced

increased

that

with

the

expansion in business

activity would take place, unless
private investment should fall to
greater extent.

a

Although

the

government

the

bolster

penditures
result

could absorb

if

could

tivity of the short seller has been,
curbed.

slump unless pri¬

investment

slack.

'in

is

the

writer

instances

past
an

economy

since

—

any

selloff.

Loom

For

Industries

27V2 to 7Va

instance
declined

74%. Actually ther6
In addition to all of the above is occurring
constantly a revalua¬
a major
tion
of
issues. This
revaluation
bear
market
impossible
is
the becomes more
pronounced

factors that tend to make

on

change that

made relative to

was

short selling. Short sellers in 1929
were
able
to
use
their
profits
short

from

the

selling to further de-

market.

Now

requirements that

only be

made

a

short sale

can

rise, the

ac-

a

on

with the

We can expect a reaction
in the
market whenever there is a
de¬

cline

in

industrial

activity.

investors' confidence
existing
at the time.
1
\ ' "

upon

are

.

invariably

we

Federal

Federal

Reserve

think¬

are

Reserve.

receives

The

lot

a

of

criticism,

since its decisions do
not always coincide with political
expediency. The Reserve is criti¬
cized

:

for
being
too
others for being
tight in their policy.
Over the years, the Federal Re¬
serve
has been relatively liberal
and, in many cases too liberal—at
by

liberal,

some

and

by

too

least for the
other times,
at

the

time.

wrong

The

Annual

anti-inflationists. At

it has been too strict

Federal

has

Reserve

three

Continental Motors

quirements, rediscount rates, and

sidiaries,

Corporation and consolidated sub¬
Motor Corporation and Gray
Marine Motor Company, had net sales of $139,946,152
in the year ended October 31, 1959, compared with net
sales of $131,415,279 in the previous fiscal year.

market

operations. Redis¬
rates and open market on-.:

open

count

erations

used

are

extensively

more

than

changing of the Reserve re-:
quirementshI '
'
/

raising

of the

rediscount

not'only has the effect of

rates

making borrowing more expen¬
sive, but it also has a psychological
which

effect

is

Branch and distributor operations were

times more
powerful as a deterrent to busi¬
ness
activity than the actual. in¬
crease
in interest. The raising of
the

many

rediscount

have

is

Unless

the

rate

is.

there

Continental

It

Therefore,

it appears

better

than

as

deterrent

a

stimulant.

a

Open market operations
used to increase and
of

amount

funds

can

available.

count

rate

are

the general
When

funds

are

short

in

the

the Federal Re¬
serve may go into the market and
buy paper — thus increasing its
holding and, at the same time,
providing more money for the

••

Motors.

was

The

Aircraft

Engine Division

expects to register in¬
of added models

creased

sales

and

customer installations.

new

in

1960,

as

result

a

The

Continental system of fuel injection has, proved
highly successful, and engines equipped with it will
again constitute an important part of this division's

output in 1960.

Gray Marine Motor Company had a good year in 1959, and
expects another good year in 1960. The outlook for the
marine engine industry is good, and Gray is in favorable
position, product-wise, to share in the business.

Wisconsin Motor Corporation showed substantial gains
in sales and earnings. A new research and
engineering

building

was

completed and occupied.

Satisfactory

was
made in the program
under which Wisconsin Motor
Corporation agreed to loan money to its Australian
affiliate, Ronaldson Brothers & Tippett, Ltd., to improve
the latter's operations as a manufacturer under license,
of Wisconsin engines.

announced

a

progress

year ago,

Continental Aviation and
had

Engineering Corporation again

good sales and earnings.

CAE's J69-T-29 turbojet engine developing

1700 lbs,

thrust powers the latest target-missile, the Ryan Q-2C,
used in aerial gunnery training, and a version of this

Military Standard air-cooled engines devel¬
oped jointly by the Corps of Engineers and Continental
Motors are now in production, and three more are
nearing the production stage, -

public than the redis¬

market,

'.

Three of the

open
market
less understood by

count rate.

money

v

by the LPS-427 Hypercycle engine, in standard 2l/2-ton
military trucks in military testing.

the redis¬

since

—

operations

as

:

More than 125,000 miles have been accumulated to date

This
same

psychological effect

-

of the year.

be

decrease the

operation does not 'have the

v;

possible to meet customers' revised delivery
schedules out of inventory accumulated prior to the
steel strike, but production and delivery schedules, and
profits, were adversely affected in the final four months

that the rediscount rate

functions

,.

Michigan, to assure continuity of supply of the com¬
ponent which that company had provided. This facility
has since been operating as the Governor Division of

a

what

success¬

On Augustl, Continental Motors purchased the Gover¬
nor
Division of the Novi Equipment Company, Nov},

good reason to borrow the
public will not borrow regardless
of

over

tomers.

usually will
as a deter¬
lowering of the

stimulant.

a

as

highly

19^8.

The company also added
to the number and diversity of its manufacturing cus¬

rate

rent than will the
rate

ful, showing gains

greater effect

a

Wisconsin

Net operating earnings were $2,637,475 in 1959, com-'
pared with net operating earnings of $2,523,032 in 1958.
(The reported 1958 net earnings of $3,536,528 included
refunds of, and overprovisions for, federal taxes on
income of previous years, in the amount of $1,013,496.)

■

.

The

Report j

HIGHLIGHTS

main weapons to use—reserve re¬

engine, de-rated to 1400 lbs. thrust for man-carrying
applications, has been announced as the power for the
new Cessna
4-place Model 407 jet.

Desirability of establishing overseas branch operations,
licensing agreements with manufac¬
Sterling bloc area, is still being explored.

and of entering into
turers in the

STATISTICS
Fiscal Years
Ended Oct. 31

1959

1958

1957

1956

1955

12,129,875

10,231,837

10,549,655

10,783,043

13,876,317

$139,946,152

$131,415,279

$135,610,890

$125,116,269

$145,465,155

$3,536,528

$3,583,301

$1,604,924

$2,502,287

$0.80

$1.07

$1.09

$0.49

$0.76

$0.60

Engine Output (horsepower)

$0.55

$0.35

$0.25

$0.70

1

banks.
need

This

on

the

Net sales

naturally reduces the
part of the bank for

for

or

operation

is

earnings

tightening

loans.

This

earnings

;v Net

rediscounting

used

fre¬

the

other

financial

hand,

market.

paper

will

On

be

to withdraw surplus
funds from the market.
Changes in the reserve require¬
ments

for

the

member

banks

per common

-

$59,657,338

$56,101,397

$64,454,365

$59,262,735

$58,115,700

$25,005,195

$21,289,109

$30,598,007

$28,304,638

$27,553,219

$34,652,143

$34,812,288

$33,856,358

$30,958,097

$30,562,481

2.4 to 1

2.6 to 1

2.1 to 1

2.1 to 1

2.1 to 1

$2,000,000

$2,355,000

$2,480,000

$2,760,000

$3,040,000

Property, plant, and equipment (net)

$16,392,626

$15,733,097

$16,223,841

$16,547,581

$17,219,239

Stockholders' equity

$49,936,827

$49,279,352

$47,557,824

$45,129,523

$44,349,599

$15.13

$14.93

$14.41

$13.68

$13.44

;

Current liabilities
'

share

share

Current assets

the

sold,

if necessary,

$2,637,475

Dividends per

quently to adjust for emergencies
in

'

Net

Net

'

working capital

"

Ratio of current assets to current liabilities

are

made

infrequently and these re¬
quirements generally remain in
effect for a relatively long period.
However, it is always possible to
raise or lower these requirements.
The raising of the requirements
will usually force more extensive

Long-term debt

Book value per common

share

borrowing from the Federal Re¬
causing the banks to

serve—thus

collect

In

higher interest rates.

addition

to

the

above, the
lower or
raise margin requirements on se¬
.

Federal

Reserve

may




MUSKEGON,

MICHIGAN

The

extent of the reaction will
depend

Whenever We think of monetary

the

any

reaction in the market.

,

ing of

Art

from

or

definitely discretionary and
do
not require special legislation.
policies,

issue be¬

overvalued, it is vulnerable

a

.■

these

as

the

to

monetary policies that will affect
our

where

individual issue may

large. Whenever

this' dis¬

In

than

comes

shall consider first the

we

believes

more

unlikely there will be

decline in
be

the

selloff ?of

any

V.

press

in

and decrease

expenditures with the result that

be

can

divided into two major classes
cussion

Easy

...

monetary and fiscal.

economy

Today the size of the down pay-, be taking more from the economy
merit and the monthly payment is than is being given back. Like-

public

Discretionary, policies

redis¬

estate.

industry like the
automobile
industry may over7
produce, with the result that the

•

as

encouraged

many causes. An

sential.

policy is not the subject of' this
discussion—but the effect on the

of

have

we

the construction

on

well

present boom

during

result

that

Federal

policy

These

credit
are

Reserve

,

cycle is
1953 could

depression
depression years,

But—for

voluntary (?)

who

in

The

business

concerned, ,1949
be Considered

a

restrict

determining the
business activity.
"

need

to

As

Federal

stabilizer

al¬

ways

on

may

banks

counting. So it is apparent that in
the

.

recovery.

Also,

it

member

'.

-i.nx'f'Ac

.

; :s

rf

wwMlttM tbMMMMMtntWku

mumsc

•

Chronicle

and Financial

The Commercial

(1X90)

83

f

;

.

i

Thursday, March 17, 1960

G

If
'

Form Service Securities
NEWS, Va.—Service
Securities, Inc., is engaging in an
investment
112

at

business

from

Gabriel

are

J.

President;

James

Vice-President;

ton

M.

O'Bryan,

Jr.,

end

Of¬

Glasheen, Assistant Secretary.

The Wise

Money

Ivy

alumni

League

have

schools,

left

their

whose

mark

on

investment

category and
the

this

reflected

is

conservative

within

It

A BALANCED

FUND

investing

in

bonds and preferred stocks
selected for conservation of

principal and current in¬
come

and in

selected

stocks

income

and

profit possibilities.

the people's money."
There's a wide streak

investing pricommon stocks

selected for

possible longgrowth of capital and

or

in

investment

the

of

this

fact

leaders.

An

be found

may

institutional

that

elevated United States Steel from

10

Co.

Yale,

dealer for

write to

Wellington Company, Inc.
Philadelphia 3, Pa.
Cp
one

At

fiscal

folios

of

close

and
their

of

Standard Oil
led the port¬

year,

Jersey)
Columbia

and

Harvard

recent

representation

no

favorites

Big

And

for

but

at

Yale's

the

in

holdings and

was

eral

at

Electric

And

what

tions?

tied with Gen¬

Yale.

is

That

the

of

end

even

automotive

G.M.

the

institu¬
of

Standard

Jersey—or
caught the

merely

even

fancy

ment-fund
share

nothing

Standard of
Texaco—that has

the

endow¬

Thus,
in
Columbia
has

oils

but

ADDRESS

the

managers.

numbers,

NAME

Princeton,

to

first five in

the

five

of

of

its

show

among

portfolio. For
is four out

score

Ltd.
is
fourth). Old Eli comes up with
oil in only three of 10—a strong
vote, to be sure, but less emphatic
than
no

are

(Aluminium,

the

others.

As

for

Harvard,

reducing

was

industry would not be

Report

holdings

its

of

Jan. 31 stood at $99,272,571

on

according to the quarterly report
of

the

fund

managed

Corp. of Boston.
net

by

value
per
share was
William A. Parker, chair¬
and Charles Devens, presi¬

asset

$9.16,"
man,

dent of the
ter

to

fund, state in their let¬

stockholders.

"Taking into
account the capital gain distribu¬
tion of 30 cents paid per share on
Dec. 15, this was the equivalent of
$9.46 and represents
from

1%

Oct.

31

decrease of

a

value

asset

of

crease

it

as

was

California.

General
most

Electric

is

the

of

insurance

investment

trusts,

favored

companies,

stock

third

trust funds and the other

common

institutions.
second.

General

But

in

the

from

32.1%

Ivy League

in

the

percentage of the fund's assets in¬
in
bonds
and i preferred
The

assets

balance
in

were

is

Motors

37%

to

vested

stocks.

Standard

Oil

it

added

the

to

invested

of

stocks.

common

New

of

Jersey

was

stock

common

sec¬

tion

Princeton and Columbia. It's only

during the quarter and Vir¬
ginian Railway and Mack Trucks

ninth

were

is

not

the

among

Top

10

at

at Harvard. And, as pre¬
viously noted, it ties for first
place at Yale, although for years
it had been an unchallenged first.

I And
only the gentlemen
of
New Haven rank G.M. among the
10. Ahead of the automotive king¬

pin

are

and

Aluminium.

If

G.E., Standard of Jersey

the

oils

tops

are

college

endowment
nevertheless
must

domination

Harvard,

with

as

with

share

their

utility

stocks.

example,

an

our

they

funds,

has

sis

Commonwealth Income Fund of

equaling

the

England

Union

total.

They are
Electric,; System,

Power.

Paso

Middle
South
Niagara
Mohawk

and

Yale

has

Natural

Power

&

N

only

Gas

h

Telephone
to

Northern

Natural

&

Gas.

American

Telegraph

some

shows

Natural

e r n

El

—

Florida

Light. Princeton

o r t

Columbia reports four:
dustrial

two

and

in¬

(an

Wall

Natural

Streeters),
Gas, El Paso

Gas and Southern

sets

of

and

away,

owners

in

Co.

the largest family
the

world, is not
represented among the major
holdings of Harvard, Yale and

even

Princeton.
the

Equally

fact that

the

interesting is
railroads, which

have few friends in the fund
have

Hugh W. long and Company, Inc.
flta^feathf, New Jersey




representation

servative

society.

in

this

Seaboard

field,
con¬

Air

Line is the second most favored of
Harvard men, * a position it - has

occupied for years.
Of

course,

colleges

put

the
them

needs
in

a

of

of

1959.

our

special

of Feb.

as

$10,535,000

29.

net

Feb.

on

there

1)

after

cents

36

a

paid

distribution

gain

capital

in

At the end of Jariuary,

December.

$569,083,030, equal
share. This per-share

$7.09

a

together with the capital
distribution, is equal
to
gains
$7.45, against the Oct. 31, 1959,
value of $7.56.
value,

Business written last month by
the

than

more

sales repre¬

4,000

Investors

of

Planning

29, 1960, was $9.50 after ad¬
justing for the 60 cents capital
gains distribution of Nov. 30, 1959.
with

compared

value

share

per

of

net

$9.83

asset

a

year

earlier.
*

Canada,

Ltd.,

increased

Growth

Fund

in

Crown

Life

Investors
Ltd.

vertible

holdings

Insurance

Co.

Syndicate

Class

mitments

its

"A"
were

of

stock.

Utilities

Chemicals.

holdings

in

con¬

Brockville

and

also reports

Standard

Wire

Cable Co. Ltd. and North Star

&

Oil,

Ltd. have been sold.
«

%

president,

month's

January

628,000

total

amounted

It

the

over

of February,

to

record

57.1%

a

over

of

will

investor

the

gain

total

Fund

the annual

at

the company's certifi¬
incorporation as well as

amending

registration

of

statement

fund

under the

pany

Act.. Under the

Investment

Miami

ing the
of

same

assets

period

of

$4,782,-

the

shares

number

increased

41%, from 276,910 to 395,889. Net
asset

and

a

50 cents capital gains dis¬

made

in

in

Philadel¬

Rockford.

Co., a partnership, and A. C. Allyn

Selected
american
shares

the

Com¬

INC.

other

economic

when

deemed

Prospectus from your dealer or

Selected Investments Co.

and,

resources,

135 8. La Salle St., Chicago

3, HI

desirable, to place

less emphasis upon investment in
natural

Fund's

Prior

resources.

change,

to

the

International
Resources
$18,000,000 of investments

been
limited
primarily to
companies in the natural resources
field. Capital Research and Man¬
agement Co. of Los Angeles is

THE

investment

adviser

to

the

Lazard Fund, Inc.
44 Wall

St., New York 5, N. Y.

Fund.
Dividend Notice

Delaney Promoted
By First Boston

The

PHILADELPHIA,

1960, to stockholders of record

Pa.—The First
Corporation announced

Boston

Robert C.

Delaney has been

promoted to Assistant Manager of
the Government Bond Department
of the firm's Philadelphia
office,

Board

declared

share

per

of

a

on

the Fund

March 21,
is

Directors today

of

dividend of 8 cents

the Capital

Mr.

Boston

the

15,

1960. The dividend

payable from net investment

income.
R. S. Trourh
T reasurer

1500 Chestnut Street.
<

Stock

payable April

Delaney joined The First
Corporation in July, 1957.

March 14, 1960.

Chicago Analysts

to Hear

CHICAGO, 111.—Louis C.

Massachusetts

Lusten-

berger, President of W. T. Grant
Company, will address the lunch¬
eon
meeting of the Investment
Analysts Society of Chicago to be
March

24

at

the

Life Fund
DIVIDEND

Bismarck

Massachusetts
is

Form
Principal
has

been

50,0 Fifth
to

engage

Officers
President

Principal In v.

Investing
formed

15

offices

in

a

of

and

Elayne

the

interim

were

and
All

formerly with B. Ray Rob¬

bins Inc.

Fund

of

share from net
income,

payable
holders

to

certificates of record
close

ot

business

March 18, 1960.

Robbins,

Treasurer;

trust

at

securities business.

Maurice

per

Life

dividend

a

March 21, 1960

at

Avenue, New York City,
are

cents

investment

Corporation

with

paying

*jt/abbac/iubettb

value

tribution

Fort

City, Omaha, Flint,

invest¬

new

per share on Jan. 31,
Wadman,
Vice-President,
1960, Was $12.08. Taking into ac-" Beatrice
Robbins, Secretary.

count

facilities

expanded

phia, Kansas

scientific, indus¬
commercial, financial, and

trial,

increase of 56%. Dur¬

outstanding

Beach,

Lauderdale, and Pompano Beach—
the Allyn organization last year

investment in

on

report

This compares with total net
assets
of $3,064,752
on
Jan. 31,
an

Palm

Beach,

to

offices—in

policy, International will be
enabled to place more emphasis

held

442.

1959, for

addition

Florida

ment

Si!

semi-annual

net

of¬

quotation

the $5,129,000

meeting to broaden the invest¬
ment
policy
of
the
fund
by

covering the period ended Jan. 31,
shows

In

services.

opening

Hotel.

Inc.,

Other

new

boards, ground floor locations, ad¬
ditional wire facilities, and other

Missiles-Jets & Automation

Fund,

months.

feature

February,

Resources

shareholders voted

the

45
few

next

*

International

of

Building,
the
fices

move

in the Atlantic
Wall Street, within

space

1958.
Hs

cate

larger

Net worth of both A. C. Allyn &

$9,410,000

1959 and 188%

Milwaukee,

The New York office will

to

New

Gary

an¬

volume

(a

in

(111.)

Aurora
(Ind.), Madison and
(Wise.) in 1960.
City,

com¬

the

in

The fund

in

Last

for that month).

Canada,

New

made

in

and

preferred stock of Inter¬

national

Benedick,

slightly higher than the $14,-

*

reporting for
the quarter ended Jan. 31, says it
has

Walter

February I high,

new

a

nounced.

that

si!

Axe-Templeton
of

for

of¬

Flor¬

months, will
enlarge its of¬

Allyn

fices
York

net assets were
to

C.

A.

of the shares

for

adjustment

in

6

decrease of 11 cents a share

a

new

fices

28,

Net asset value per share on

This

firm,
opened

ida in the last

as¬

Feb.

Interestingly, A. T. & T., whose
1% million shareholders make it,
far

$16,555,000

compared with total

no

Electric,

Utilities

only

oil

of

sets

which

had

Hs

San Francisco reports total net as¬

less than four among its leaders—
New

eliminated.

This

ment

reports

Inc.

1 y2 % in the value

or

Parker

"On Jan. 31, 1960

of

even

Fund,

(starting Nov.

year

was

was

boosting its stake in Standard Oil

Electric

cal

as¬

with 10,836,213 shares outstanding,

report.
invest¬

four
Affiliated

000

The Funds

an¬

annual

The

'Is

si!

to

s

inves¬

nounced in the

that in the first quarter of its fis¬

sentatives

$9.56. Major portfolio change dur¬
ing the quarter involved an in¬

General

❖

of

partner,

equal to $20.72 a share.
with $6,826,947 and
$20.09 a year earlier. During the
year
shares outstanding rose to
470,991 from 339,781.
This compares

cyclical

Incorporated Income Fund net
sets

serve

756,601,

Corp. of America totaled $14,780,-

.

less than four of the top seven
oils.
Incidentally,
Harvard

net assets

i 1 itie

tors, A. C. Allyn,
senior

reports that
totaled $9,-

Fund, Inc.

29

Feb.

at

fiscal

the

favorite

same

it

(78,400

more

Jersey.
is

Yet

spot.

represented.

investment

stock

900

some

Princeton

the

25

industry,
among the Yale favorites—No. 8.
shares

place

the

among

kingpin of a cyclical
is
represented
only

year)

first

have

years

tenth

the

to

Steel,

in share total. It vied with Texaco

□ Wellington Equity Fund

S;

Princeton

the

of

stocks

in

for

□ Wellington Fund

CITY

examination

favored

most

(New

Nor

Check

other

holders

the

of
Ask your investment

of open-end and closed-end funds

Age, it seems, is for the laboratory
—not the portfolio. This conclu¬

future income.

prospectus

from the managers

cue

illustration

Eastern colleges. The Space

our

latest

Equity

in

con¬

of

of

Fund

term

of

program

improving fac

-

taken their

or

Columbia.

marily

-

servatism in the endowment funds

Harvard,

Ait

Presi¬

as

glamour issues is not only under¬

sion emerges from an

common

for

standable, but commendable. It is
difficult to quarrel with the stress
on
bread
and
butter
equities.
Plainly, the
colleges
have
not

But,

dent
Eisenhower
says:
"I
am
liberal in my economic philosophy,
but conservative in dealing with

& Co.,
Street, will ex¬
pand and modernize five offices
in 1960, continuing its extensive
122 South La Salle

Westinghouse
Thiokol Chem¬
v/; A/" V" 1

Energy

their

of

bent

portfolios. Income and safety are
paramount. The desire to avoid
cyclical
stocks
' and18 so-called

halls.

Hi.—A, C. Allyn

CHICAGO,

in

community, have
acquired a considerable reputation
for inculcating liberal, progressive
and
even
leftist
philosophies
their

Allyn Co.
Expanding

Electric Corp. and
ical Co.

Our

our

!!

Aircraft Corp., General

A. C.

Rubber Co.,

Tire &

dent; E. K. Lemasters Treasurer;
B.

holdings on Jan.

five largest

Lockheed

Cres-

O'Bryan, Secretary, and A.

securities of 38 companies.

31, 1960, in order, were American
Machine
&
Foundry
Company,

Vice-Presi¬

F.

fund's assets was

the

The

Lemasters,

W.

invested

the

in

RICH

BY ROBERT E.

Glasheen,

Executive

W.

over

of

offices

Twenty-Eighth Street.

ficers

period, this represents an increase
last year of 13.6%. At the
of the fiscal half year, 81.6%

FUNDS

MUTUAL

NEWPORT

" /

Trustee

nbalance
50

State Street,

-

C/Cob/iilalfjCtfe
Boston 9, Mass.

^Incorporated 1818

'

i-tmrnKYnHttj aawwom,

Volume

and

Number 5934

191

the

Incorporated,

Company,

affiliated underwriting and dealer

organization,

reached

close of

at the

highs

new

1959.

Net worth of A. C. Allyn

& Co.

.

The Commercial and Financial Chronicle

»,

Inc.,

amounted to

$14,386,338, up $403,-

income

Net

the

of

partnership
amounted to $475,256 in 1959. Net
income of the corporation totaled

$836,459.
and

Listed

over

the

-

stock transactions in 1959

largest in

the

counter

-

the

were

history of the

or¬

sidiaries

Talcott,
factoring and

industrial

and

been

Corporation,
is
and
banking

He

pal bonds to individuals advanced
notably in 1959, according to the

of

the

is

former

a

New

of

A. C. Allyn and Company, In¬
corporated, participated in 223 underwritings, corporate and munici¬

pal, in 1959.

Textile

of
Its

and

President

of

Esquire

Franklin

founded

in

Street

was

in

The

company

Sales Training

engaged in all phases of factoring,

conven¬

residents

of the big mu¬
organization.

a

full-time

Doorley
formed

,

& Co.,
nationwide security and
commodity brokerage firm, it was
announced
by
Lloyd
Kayser,

of

manager

342

firm's

the

Madison

Prior
ment

to

with

her

I.

duPont

V'-V1

•i!:

L-/V'-

:

Beck engaged in the
corporate and private practice of

with

With Merrill Lynch

offices

at

(Special to The Financial Chronicle)

Wash¬

65

are

Robert

Diamond, President; Robert E.

Ore.1

Robert

—

Doorley, Vice-President; and Wil¬

Building.

He

Foster &

Marshall.

Doorley, Secretary-Treas.

was

formerly with

■

■

If

-

.

R. A. Holman &

Of the net
be

equipment

tools,
for

be occupied by
000

the new plant to
the company, $25,-

installation

for

Beneficial

proceeds, $25,000 will
machinery and

for

used

Reports for 1959

leasehold

of

improvements in the new plant;
and $33,000 for additional work¬

ing capital and inventory.
The

corporation

sale of

11

com¬

plete residential swimming pool
packages which are installed by
its dealers throughout the United
States.

Ii!

in

engaged

is

the manufacture and

Service to families, reaches record

II

high

pi
18

r;

ASE Stk. Clearing

||

Earnings increased for 15th consecutive year

ii
&
w;

The

following officers have been

Offices in Beneficial

appointed by the American Stock
Exchange Clearing Corporation to
serve for the ensuing ;year:

Vice

IS

J.

Charles

Chairman:

President:

Nineteen

year

T.„ McCor-

Edward

mick.
President

Manager:

and

Comptroller:

Eugene A. Gaiser.
Secretary
C.

urer:

and

E.

amounting to $773,877,411,
families

ever

August Gunther.

Treasurer

before.

$23,445,385,

Assistant Treas¬

annual

have

span

been

nual

named

to

to the Board

until

serve

the

of

An¬

II.

Meeting in March 1963.

Lipman, Cohen

BEVERLY

with

to

business.

a new

South Beverly

in

engage

Partners

securities
Lip¬

a

Alan

are

Jed M. Cohen, general part¬
ners, and Norman Elzer. limited

ix;

the

for

15-year

since the end of World War

Sixty-eight offices

tion

as

were

$ 21,731,164

$2.21

$2.02

$1.00

$1.00

Total Assets

$565,596,495

$521,551,077

**Amount of Loans Made

$773,877,411

$712,861,626

1,210

1,142

$554,371,946

$509,642,263

*Net Income per

Common Share

was

Common Share

posi¬

largest system of

finance offices. Service

*Cash Dividends per

added

1210 offices at the year-

the world's

$ 23,445,385

Net Income

high mark and

HILLS, Cal.—Lipman,

offices at 211

Drive

totaled

end Beneficial maintained its

Cohen Associates has been formed

Number of Offices

<

extended

Instalment Notes Receivable
to

1958

1950

II If* II LUi UTS

served than

Earnings

increases

and with

Form

were

continued the record of successive

Sheridan.

Townsend E. Allen, Leonard C.
Greene
B.
Lewis
and
Roneilo

Directors

banner

was a

loans

General

and

fifty-nine

for Beneficial. With volume of

more

.

-

$ !

P%

Bocklet.

Vice

System exceed 1200

Edward W. Kraebel.

Chairman:

London,

England.

i

(after deducting Unearned Discount)

^

'

-v

a

man,

The

Beneficial

Finance System

'

—

*Net income per

partner.

to

dating back to 1914
Riverside Securities

—

makes small

loans

mainly to families to help

them

in

**

(Special to The Financial Chronicle)

BURBANK, Calif.—Riverside Se¬
curities, Inc., has been formed
with

Drive

offices
to

business.

at

4421

Riverside

in

Officers

a

are

John

Men-

doza

President, and Virginia B.
Mendoza, Secretary-Treasurer. Mr.

Mendoza
son

&

was

practical

way

during

adjusted.

only (unearned discount approximating $61,000,000
$10,000,000, respectively, has been excluded).
Principal

and
,

.

..j.

periods of unbalanced budgets.

securities

engage

a

Common Share is adjusted for each year to give effect
2i/2% stock dividend paid January 30, I960. Cash dividends per

Common Share for each year are not so

The information contained herein should be read in con
...

a

financial

BENEFICIAL loan is

statements

and

Stockholders. A Copy

for

a

notes

of the

junction with the

appearing in the 1959 Annual Report to

Report Will Be Furnished Upon Request.

beneficial purpose.

formerly with Wil¬

Bayley.

I

National Investors Planning
DES

MOINES, Iowa—National In¬
vestors Planning Corporation has
been

formed

Plaza

State

with

offices

in

Bank -Annex

to

i/ia/ice

the
en¬

Beneficial

gage in a securities business. Offi¬
cers

Edward

are

President
F.

Tigges,

T.

Michael

Lockner,
Treasurer; Gerald
Vice-President,' and'

Lockner, Secretary.




Building, Wilmington, Delaware
'M ts

W.

and

MORE THAN

1,200 OFFICES IN THE UNITED STATES, CANADA

T.

Morris, III, has been added to the
staff
of
Merrill Lynch,
Pierce,
Fenner & Smith Inc., Executive

ii

Co., of New York
City, on March 1 commenced a
public offering of 100,000 shares
of common stock
(par 10 cents)
of Cascade Pools Corp. at a price
of $1 per share.

&

Mrs.

Co.,

Cascade Pools Corp.
Comm. Stk. Off'd

at

York

appoint¬

present

Francis

liam F.

maintains

office

Avenue, New

City.

I. —Diamond,
Inc., has been

rities business. Officers

Centers at 60 East

Beck has
Registered

a

Representative with the Madison

R.

Co.,

&

ington Street to engage in a secu¬

H.

as

Avenue office of Francis I. duPont

PORTLAND,

opened at 91
Hempstead,

Halprin

Diamond, Doorley

PROVIDENCE,

Sales

i

,

Dorothy

become associated

training

and
is
equipped
with
modern training techniques.
faculty

Form

Fund

also

with

a

the new center is

daily,

Open

.

becoming registered

sales

fund

staffed

poration of America.^

is

1854,

tual

N, Y. by Investors Planning Cor¬

Credit

Club.

Talcott,

Mutual

newest

in

as

Island

Long

79

Planning

Training Center

Association

Salesmen's

at

Opens Training Center

Credit, executive Chairman of the
Credit Group, President
of

offices

to

representatives

Company, Inc. has
with

firm;

the

Investors

Uptown

report.

&

formed

City,
securities business.
Leonard J. Termo is a principal

President

Institute

York

Benedick, the Hempstead
was

interested

Madison Avenue, New York

widely
textile

,in

circles.

Walter

opened

.

„

C. President

23

With F. I. duPont,
*

,.

Mrs.

",v

•

Center

to engage in a

formerly executive
Vice-President
of
Congress
known

J. Termo

L.

•

»

According to I. P.

Forms L. J. Termo Co.

fi¬

Luse,

Factors

York,

ience

Factoring Division.. He will serve
as
a
factoring account executive.

ganization. Listed business gained
33.6% over 1958. Sales of munici¬

located in New

are

City,

New York

in

Street,

sack, N. J.

and

nancing organization, it has been
announced by Joseph A. Amato,
Vice-President of the company's

Mr.

42nd

and at 946 Main Street in Hacken-

James

of

106-year-old

commercial

fi¬

Chicago, Detroit, Boston, Atlanta
Los Angeles.

Theodore B. Luse has been named

Allyn and Company, Incorporated,

industrial

and

nancing, equipment leasing and
rediscounting. Offices and subr

Talcott V.-P.;
Vice-President

350.

commercial

T. B. Luse Named

totaled $964,496, a gain of $285,189
for the year; net worth of A. C.

(1191)

AND ENGLAND
di

24

listed

BANK AND INSURANCE

Dayton Pres. of

Philadel¬

phia

This Week

Stock

Exchange.

'

w,

Insurance Stocks

approval

to

*

*

by

v

;

COMPANY OF NORTH AMERICA COMPANIES

INSURANCE

He

Enterprise distinguishes the North America

succeeds

J.

—

At the
°J •
the indicated $3.60 dividend •

yield of 2.7% is obtained on

Tclt/G

17, I960

Thursday, March,

Balti¬

-

more

BURRINGTON

I.

of

President

elected

LEO

BY

.

Stock Exchange.

American

the

on

a

Subject

PHILADELPHIA, Pa —S. Grey
Dayton, Jr., partner, Elkins, Mor¬
ris,
Stokes
&
Co.,
has
been
the

134,

.

.

stockholders this week, authorized
shares will be increased from 10 million to 15 million shares or
$5 par Stock, a 100% stock dividend will be declared in April, and
a quarterly cash dividend of 450 on the increaseci
shares w1^-. be
paid in July, to stockholders of record June 30, I960. Trie divi¬
dend action in effect increases the annual rate from $o.0U to $o.ou
on the 5,404,867 shares presently outstanding.

Phila.-Balt. Exch.

unanimously

Financial Chronicle

The Commercial and

(1192)

The

Raymond

group

of companies.

parent, Insurance Company of North America, is the nation's

oldest, largest and most profitable of the stock fire insurance com¬
panies. With two wholly-owned subsidiaries,, the North America

Leek, partner,
Bioren & Co.,
i d ein t

after

serving

top seven fire-casualty concerns in the industry measured by assets

for

three

and

More

Companies underwrite multiple-line insurance world-wide through
more than 20,000 agents and brokers.
The group ranks among the

•who retires
P

r e s

as

Mr.
in

1949

ner

of

L

competition

be¬

Marine

part¬

a

w

S. Grey Dayton, Jr.

Edw.
b

r

e

reduction, the recently completed re-allocation
underwriting position allows INA to meet

and consolidation of its

Dayton

came

o

by premiums written; assets exceed $1 billion.
To ensure cost

years.

Company,

of North

Co.

Elkins,

Insurance Co. of North

1956.
Mr.

Dayton stated: "1959 share
volume
increased
22.2%
over
turn
increased
1957.
This
48.5%

1958,
which
21.5%
over
two

years

the

results

dramatically
program
of

reflects
of

our

expansion, sparked by merger
with

Baltimore

the

Stock

Ex¬

change in 1949,
the

"In

past

10

years

have

we

from
a
Philadelphia
centered operation to an Exchange
changed

serving the Eastern United States
from
Maine to Florida, and af¬
fording

the

members

our

Philadelphia

Fire

and

subsidiary,

was

ian

1959 the

makes

goal probably will be achieved prior to 1967.
Underwriting activities divide about evenly between fire and

Wider profit margins than those of most competi¬
tors are achieved by provident selection of risks. Aggressive and
innovation-minded
management
has established
an
excellent
casualty lines.

(the gauge of insurance
methods); progress is expected to

growth record in net premiums written
acceptance and merchandising
continue at

good pace.

a

A

complete

company

multiple insurance exertion has resulted
for multiple-line operation,

field.

"We
of

organization of

have

now

which

growing business upon
Combined

build.

to

tradition

change,

recent

business

history

to

listings

and

from

and

Eastern

United

J. B.

in¬

in

the

States."

Joseph to Admit

March

become

attract

corporations

vestors

On

our

in the best position

we are

in

our

with

America's Oldest Ex¬

as

partner, in

a

J.

Stock

Exchange.

FREFPORT, N. Y.—Suburban In¬
vestors Corp. has opened a branch
the

3.0

at

Bedell

management

Street

under

Joseph

of

showing the way for the independent agency companies ;to
compete effectively with the direct writers. Recent effort has been
concentrated on personal insurance needs, including accident and
sickness and life as well as Homeowners, the package policy of
residential protection.
Currently the Indemnity Company is in¬
troducing the INA-Champion Automobile Policy, a modern, selec¬
tive risk, competitively priced protection for private passenger
it will be available in the majority of States early in 1960.
Selected

H.

Statistics

—

Growth

and

Underwriting

Admitted

—Net Premiums—

Year

Earned*

Written*

1959

fLoss

Assets*

$338.3

340.5

316.9

Margins

60.1%

1,022.4

37.4%

97.5%

60.4

$1,064.1

37.4

97.8

1957____

322.7

294.7

867.4

62.5

37.8

288.4

269.1

857.5

58.8

38.5

97.3

1955

269.7

820.4

57.7

38.1

95.8

"In

million

to

21 LEADING

will

Saving is not easy. It requires
that
people
deliberately
deny
themselves
present benefits for
greater future benefits. The large

saving

meet

to

BANK STOCKS
Bulletin

1959

Members New York

Stock
Stock

Price

Year

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500

Share

i

Invest.

■

Income

Range

1960

139

-

Total

that

Ratio

1959

148

-

115

$5.40

$5.73

137-

91

5.13

5.51

110-

81

4.95

4.07

23.6

104-

83

4.72

4.60

106-

83

4.34

4.81

BANK

LIMITED

Amalgamating National Bank
and

London

54 PARLIAMENT

ST. JAMES'S

Trustee

Govt.
ment

Depts.:

Rd.,
St.;

Bankers

to

St.

13

Nairobi;

period of eco¬
nomic
expansion.
Retiring debt
has a wholesome effect in holding

Travel

E.C.3

James's

Dept.:

value

St.

and- at

54

Parlia¬

James's

Sq.

ADEN, KENYA,
ZANZIBAR & SOMALILAND
PROTECTORATE
Branches

INDIA, PAKISTAN, CEYLON, BURMA, KENYA,
TANGANYIKA,. ZANZIBAR, UGANDA,
ADEN,

SOMALILAND

NORTHERN

AND

PROTECTORATE,
SOUTHERN RHODESIA




23.0 !

3.00

,

actually

or

occurred during
1920s.

must

we

recognize that we will not achieve
debt reduction on any substantial
unless

scale

we

wider

find

can

let

2.50

me

come

the

to

ques¬

of the

2.50

a

I

restate some of
think correc¬

going to
why

am

the reasons

we

2.29

Today the current pressure for
funds
bv
businesses,
state
and

other

and

builders,
makes

2.08

95.04

81

demands

heavy

relatively high

common

return

pushed up interest
because of
4%% ceiling, cannot sell new

the

Treasury,

The

rates.

of

bonds

stock holdings and

At year-end

1959

the

market

and

stock

The stock of this strongly financed company can be
sound investment in the multiple line insurance field.

considered
Since the

recognizes the company's enterprising activities, the issue
historically is priced on a low yield basis and at a high multiple
of earnings.
The recent streamlining of operations and entrance
into life insurance inspire confidence in the continuation of ag¬

gressive and effective operations.
pleasant to insurance stockholders

Recognizing convenience is
as

to

as

policyholders, the stock is

five

than

more

years'

maturity. It must, therefore, bor¬
row

wholly

on

short-term securi¬

ties.

Much

of

this

is

it

it hurts consumers
and
businesses; and it creates

costly;
small

management

debt

greater

even

is

under

conditions

market

current

borrowing

inflationary;

potentially

problems for the future.
Crowding all Treasury borrow¬
into the short-term market
to inflationary pressures for
reasons. In
the first place, a

ing
adds
two

is

long-term bond

true invest¬
short-term,,

a

ment instrument, but a

is. only

security

few

a

steps away ffoift being money. -It
can
be sold easily in the market,
at

its maturity value,

close to

or

to obtain funds to spend

and

for goods

the holder1 can
simply wait a few days or weeks
until
it
matures,
demand
cash
services, *or

from the

Treasury, and spend the

proceeds.
From

purely technical stand¬

a

such

point,

sale

redemption

or

not increase the money sup¬

does

ply

ordinarily

as

but ;it

defined

has much the same effect. This
for the

reason

to

cashed

are

intends

who

active

is

that the short-term

to

by

the

whereas

Department,
the
important piece of business

holder

a

the proceeds

put

buyer is

new

wise would be idle.

managing our existing
the point of view of

Treasury

most

which

left unfinished
last fall was
granting to the Treasury the addi¬
tional statutory authority neces¬
Congress

adjournment

upon

to manage our record Federal
without

adding

infla¬

to

tionary pressures.

the President in June of last year

asked

Congress

use

Secondly,
make

the

to

the

removed

interest rate ceiling

on new

alpTreasury bonds

run¬

up

commercial
much

a

cial

banks

create

new

buy

this,

and

adds

the

to

as

money

adds

momentum

to

inflationary

our

$290 billion

forces.
The

handling of

but

Sole

reliance

on

rowing
interest
of

less

term

flexible

the

The

House'

Committee
Feb.

23

Ways

and

Means

Reported favorably

on *-a

bill

that

does

not

rate ceiling

$$The Administration
desirable. However,
the bill would,
at least in the
period immediately ahead, permit
the l Treasury'
to accomplish the
debt lengthening which is so es¬

has

believed

sential

in the

We cannot

national

interest.

predict the

course

an

is

inflationary

rates
than

issues.^
under

not

^short-term

costly

securities

most

maturity

years'

Every

on

longer-

borrower -in

five-year

the legislator! through the House
and Senate but we will continue

is

range

penalized.
It
the

to

is

only

common

confinement
one

segment

that

sense

of all borrowing

of

the

market

tends to drive up interest rates

in

that part of the market. The fact
is that the short-term market; is

already
overcrowded,
reflecting
the impact of heavy deficit fi¬
nancing, record credit demands on
the part of consumers, small

of

bor¬

because

today,

on

five

is
all.

manner

that's

higher than those

are

last

completely eliminate the interest

we
know,
supply.
An

expanding money supply, during
a
period when pressures on eco¬
nomic resources are intensifying,

enough,

debt management.

they
the

securities

demand deposits in

bad

interest

Treas¬

securities than they do for
long-term issues. When commer¬

debt in

artificial

banks
part of

larger

short-term

market for

ury

more

the

other¬

using funds that

process,

order

On the 12th of January
the President, for a third
time, asked I'.Cdhgress for removal

on

the

on

all aware, has

ceiling,
passed in 1918, which is restricting
A

borrowers

volume of savings and, as we are

From

in August.

39.61

1.13

home

governments,

municipal

the matter but did not act,

97.25

19.8

]

legislation is so important.

tive

,

Ceiling

of the

maturity.

90.99

20.4

4.92

exceptional record.

bond

common

•i

,

of

* than five years to
The: Congress debated
despite
renewal of the President's request

112.63

investment
an

/-

Harmfillness

securities

Federal Government level.

ning

$116.12

20.7

market

in:

rates,
as

realistic

are

we

issues of

stock portfolio amounted to $162 a share,
representing 57.5%. The life insurance sub¬
sidiary is carried as an investment at $9.3 million (market value
estimate), or $1.70 per INA share, at the end of 1959.

with

the Government in:

UGANDA,

2.45

investments is earned due to sizeable

Sq.;

Dept.:
13

34

management's aggressive policies.

STREET, S.W.I

interest

down

of

past decade,

SQUARE, S.W.I

Ins.

46-

Net

LONDON,

Government

the

this year
1949

Branches

for

is

retire debt in a

to

4V4%

India Ltd.

Office:

BISHOPSGATE,

'

Value

1

Bank Ltd.

Grindldys
•Head

of

restrain

One of the best ways to

inflation

•

Treasurv

effectively to do its
job in handling the public debt,

$3.60

1956

13

Dividend

122

1957

NATIONAL AND GRINDLAYS

environment

an

to

removed.

be

In

Book

Avge. P/E

Earnings

1958

1955

were

Approx.

Teletype NY 1-1248-49

Bell

on

Statistics

Specialists in Bank Stocks

26

casualty lines, how¬

Management is counting

Approx.

Exchange

American

re¬

this decade needs

saving. This means
the'threat of inflation must

conducive

debt

Exchange

Members

capital

new

of

assistance

the

sary

Per

of

quirements

at least

Laird. Bissell Q Meeds

120

A 15% increase in

approximate $400 million; results in January and February
unusually good.

Request

on

the

dent.

tion

premiums written.

is projected for 1960.

be called

effort that will

for

10% gain in over-all 1960 underwriting production which could

ever,
a

their

of

be

vigorously for. corrective

press

legislation, preferably in the form
originally submitted by the Presi¬

debt.

premiums earned.

level in order to cut losses.

value

the

that

will

to

protected, people
be willing to work harder,
more, and invest more.

the

underwriting profits increased from 2.2% to 2.5%
through loss reductions. Net premiums written increased 5.1% to
$357.8 million; the gain was entirely in property lines. Casualty
line volume, mainly auto, was deliberately kept down to the 1958

Earnings Comparison

of

sources

the
In

no

provide new
production. With as¬

surplus

our

Now

incurred to

is

careful

work,

planning and true saving. We will
grow as a country only if we pro¬
duce more than we consume and

$.

tLosses incurred

there

that

hard

public support for programs call¬
ing for reducing, or at least hold¬
ing the line on, expenditures at

100.3

1956____

253.9

for

substitute

the decade of the

Profit

Ratio

war

must have an

we

understand

who

lowering them,

Control

^Expense

Ratio

$357.8

^Expenses

Fisher.

be

If

1958

Suburban Investors Branch

office

INA is

Bernard

City, -^members of the New

York

Typified by cost reductions, thorough personnel training and
incentive plans, operations have forged ahead in servicing
customers interested in price and convenience as well as pro¬
tection
and
quality. Direct writers with their career agents
have shown .the way in merchandising insurance coverage and

cars;

Joseph & Co., 72 Wall Street, New
York

movement

originating the Homeowners policy, and entering the life insurance

will

Leon Drusin

28th

the

spearheading

stock

momentum

the

will

save

far better than have most competitors.

civil¬

cold

the

which will grow, which
dynamic. We need people

icies, and serves business concerns with blanket liability coverage.
The company withstood the ravages of the heavy loss cycle during
years

which

essential,

dollars

several

heavy

the

economy

surance

the past

time

the military and

on

fronts

provides full facilities for family security through "package" pol¬

from

country.

burdens

use

Corporation of Philadelphia
performs more services for our
its kind in the

indefinite

an

Complementing typical coverage lines, INA offers fire insur¬
ance below the "established rates"
of the orthodox underwriters,

modern facilities. The Stock Clear¬

members than any

government,
budget works for a

balanced

A

goal of $1 billion insurance in force by the end of 1967. Since life
insurance in force has already grown to $337 million at the end of

Afmerica.

to

:

growing economy. It inspires con¬
fidence. It works against inflation.
If we are to continue to carry
for

most

ing

good

7

policy and of

fiscal

sound

of

The rapidly growing life subsidiary, Life
America, started business in 1957 with the

in

cumulative increase in business in

The

wholly-owned

a

merged into the parent company in 1958. All auto and casualty
business is now handled by the subsidiary, Indemnity Insurance

Stokes &

Co., which merged with
Morris & Co., in July,

effectively.

more

even

Insurance

Continued from page
bol

nesses,
rowers.

that

busi¬

and other short-term bor¬
This overcrowding means

somebody

is

going

to

get

*wprri
*

Number 5934

Volume 191

.

.

«*

The Commercial and Financial Chronicle

.

(1193)

pinched, so long as the Treasury
has " to
borrow
exclusively on

Congress who would deliberately
increase
the
money
supply
to

tual

short-term issues.

lower interest

future commitments to

addition

In

inflation¬

being

to

costly, and unfair to private
borrowers
such
as
consumers and
small businesses,
Treasury financing wholly in the
short-term range can only add to
future problems of debt manage¬
ment. Currently almost 80%
of
the
marketable public debt

effect

ary,

short-term

the

this

thing

to

scope, and

in

controls,

it

of

I

of

the

its

mortgage market. I

own

of

problems—not

them

swings

or

arises

in

the

from

the

the

volume

wide

of

con¬

few
of

It

has

been

that

the

removal

alleged

by

—have

some

414%

the

of

the

area

abroad

and

interest

strongly

rates

as

to

their

put

demand

of

their

In

newal of the

the

soft

money

reminiscent

It

so

is

not

much

it is

as

criticism

a

tary policies
in

No

a

is

advocate of

printing

But

are

there

wittingly

of

These

people

Federal
return

the

to

-

was

engine

of

-inflation"

and

of

1951.

Every

dollar

that

was

the

Federal Reserve adds to its port¬
folio

'A

is

the

high-powered dollar,
providing
the
basis
for
a
$6
growth in the money supply. Such
action
would
spawn
the
very
inflation
that
ultimately shoots
a

interest rates through the ceiling.
of inflation discourages in¬

Fear

the

on

5%

as

when

market

to sell

in

did

it

on

pay

October,
"magic"

a

as

becomes

front-page

the ^buying

individuals

of

think

never

of

who

in¬

such

such

Many

of

buyers

relatively unsophisticated in¬

are

who

vestors

characteristics

the

of

would be better

funds with
in

money

If

•

out

is

where

or

their

predeter¬

on

terms.

the

Treasury could have put

longer

term

issues,

terest rate would have

5%

and

less

who put

in

institutions.

well

their

the

to

Further¬

importanfefact is that much
money to buy these high-

yield

marketable

raised

Thus, the demand for

the

by drawing savings out of
andisavings and loan

and

the

buying bonds; it en¬
seek credit.

supply

is

rises
diminished.

money

Interest rates go up.
There is another group




the

is

Themet

result

is

an

the>Jnortgage market
substantially greater than the ac¬
injury

in

securities

banks

associations.

to

of

the

debt

a decision.
They can choose
artificially low interest rates cre¬

make

ated

by

soft

and

money,

inflation

that

accept

results

as

the

terest

rates, and thus fight infla¬
avoid¬
ing booms and busts, will contrib¬
ute to ' healthy,
sustainable, and
rewarding growth.
The latter course, by

tion.

17

1957

30

.83

.60

17

—

14

1956

26

.83

.52V2

18

—

12

1955

21

.69

.50

16

—

12

1954.

20

.69

.35

13

—

9

1953

17

.59

.431/2

8

—

7

1952

15

.54

.40

8

—

6

13

.49

.40

7

—

6

11

.57

.40

6

—

5

10

.50

.32i/2

6

—

4

rate

•Present

President

72

*$

.98

cents.

the New

York

Society of Security Analysts, forecast earnings of $1.20 for

1960.

been

has

Florida

in'

Machines,

a

talk

recent

before

the rest of
the country; since 1950 its population has increased 72% compared
with 17% for the U. S. as a whole.
Industrial employment has
growing four

times

as

fast

as

and agricultural, mining and tourist activity have in¬
considerably. The tourist industry enjoyed its greatest

doubled,
creased

in 1959, attracting between 10 and 11 million visitors. Tampa
Electric is confident that growth will continue at the same rate

year

for

the

next

decade.

company's

covers 1700 square miles on
the west
population of over half a million. It in¬

area

with

Florida

a

Port Tampa, Plant City, Dade City, Winter Haven,
Mulberry, Auburndale and Lake Alfred. Important industries are
phosphate mining and processing, citrus processing (packing, can¬
cludes Tampa,

ning and concentrating), brewing of ale and beer, cigar manu¬
facturing, steel production, steel and aluminum fabricating and
cement manufacturing.
Other activities are growing of citrus
fruits
and
vegetables,' cattle raising, dairying, lumbering and
fishing. Currently, some one-third of the world's supply of phos¬

phate is being mined in the company's area, and the phosphate
deposits are probably large enough to last 300 more years at the

The Winter Haven and Dade City areas are
dollar citrus industry; and
strawberries, tomatoes, etc. are grown in winter months for con¬
sumption in the north.

present rate of usage.
two

major centers of Florida's billion

Tampa's position seems secure as the major port and distri¬

buting center on the west coast. The
Airport handled a million passengers
now
being enlarged for increased jet
foot water port is Florida's largest,
doubled irr the past decade.
A new
nects Tampa with other cities.

10 airlines at International
last year, and the port is
plane traffic. Tampa's 34and customs receipts have
interstate expressway con¬

is also a center for industrial activity. In the past
nearly 150 industries and large commercial establish¬
ments have been added, and $186 million has been invested in
new
plants and expansions. Building permits in 1959 were over
$100 million for the Greater Tampa area—an increase of 11%
over
1958, and four times that of 1949.
Major expansions are
planned by companies using phosphates, and other companies
building new plants include Thatcher Glass, Continental Can,
Florida Portland Cement, Florida Nitrogen, Air Reduction, etc.
Large new industries in the area which contributed to the 20%
increase in industrial sales last year were Joseph Schlitz Brewing
Company, Anheuser-Busch, Inc. and Florida Steel Corporation.
Tampa

five years

and

Tampa Electric spent $23 million on construction last year
has scheduled $24 million for this year and an average of

$30 million or more annually over the next five years. In addition
to
continued
industrial expansion, Tampa Electric expects its
residential

commercial

and

sales

to

expand

rapidly because

of

of electric heating and cooling on a big scale.
Last year 839 heat pumps were installed and the company now
has 2400 central heat pump systems and 5300 window-type heat
continued promotion

pumps

on

its lines.

While the company
nevertheless

it

determine the

has

enjoys fuel adjustment clauses in all rates,
a
careful study of oil, coal and gas to
It burns oil at two plants and has a

made

cheapest fuel.

good 10-year contract with Gulf Oil, but about two-thirds of
generation now is provided by coal; in partnership with others,
coal down the Mississippi River and across the Gulf.
It has reduced fuel costs by these methods—kwh cost was .387£

very
address

•An

Group
N.

by Mr. Baird before the
Savings Banks Association

Five
State

the

Y.,

of

Feb. 26,

New

York,

Brooklyn,

1960.

money

anyone
who
knows the
psychology
of the savings
de¬
positor knows that his interest in
purchasing a marketable bond is
generally in reverse ratio to the
maturity of the. bond. He likes to
think he can get-his money reason¬
ably soon if he should want it.
The

distribution
the

Today, the American people,
acting through the Congress, must

.

/

(Special to The Financial Chronicle)

Ohio

Russell

—

C.

James has become associated with
John

Nuveen

&

Co.

regional
manager of their newly opened
office
in
the
Huntington Bank
Building.
Mr.
James was for¬
merly
Columbus
representative
for First of Michigan Corporation
and

ager

as

prior thereto

was local man¬
for Baxter, Williams & Co.

Wayne
with

the

tative.

R.
new

Johns
office

is
as

it transports

of 11%

New Columbus Branch
COLUMBUS,

its

compared with .435d in the previous year, a reduction
which savings are largely passed on to customers.

last year

James With Nuveen in

more,

of

knowledge¬

people

field,

would otherwise be the-case.

the. in¬

been

appealing

individuals

savings

our

maturity
spectrum
actually work for lower—
net higher — interest rates than

of

under

is

night follows the day. The other
choice,
which
I trust
will
be
adopted, is to permit flexible in¬

off to leave their

bonds
available

by

this

in

it

marketable

savings institutions

savings

mined

shared

that

opinion, which is wide¬

the

securities. In many instances, they

21

otherwise.

understand

not

do

than

obvious, therefore,
has much to gain

reiterate

me

across

se¬

and

news

lower

would

rate.

interest

addition,
financing

request for removal of the

rational

this

government

a

becomes

to

4- to 5-year

a

In

on.

interim

that the re¬
moval of the 414% ceiling on new
issues of Treasury bonds, by per¬
mitting the Treasury to make a

the
ceiling
crowd the

and

that

interest rate ceiling.

Let

ly

submit

rather

considered

with the recent in¬

courages borrowers to

vestors from

<

.

national

I

more,
mortgage
with the ceiling

it

of

be

seems

414%

Treasury to

vestments.

inflationary

wisely discontinued following the
Treasury-Federal Reserve Accord

even

thousands

and

immediately
That policy
properly characterized as "an

4%

cost

dent's

banks.

savings

on

shares, but still probably

captures

that the
should

done during and
after World War II.

savings
more

•

It

—

was

little

ac¬

be

with

than

should
It

credit.

of

able

usually

practice .of
supporting the prices of Govern¬
ment bonds
to keep-interest
rates down—in the same way that
highly

mutual

than

curity

System

discredited

•

active support of the Presi¬

in

earn a

interest rate

by
that

who un¬
what is
in
same
thing.

believe

Reserve

dependent

industry is
on
the life-

housing

note,'as

press money.

the

heavily

building

from

high

many

advocate
much

essence

home

The

secure

the average on their

Therefore,

outright

an

invest¬

the

ment markets.

that

short-term

complex subject.

today

one

disturbance of

major

off

on

—

—

coast of

a

the

no

Low

High

23

$

$36

The

issues, would be relatively small.
is cash financing or refunding
of
maturing issues
that
causes

their

on

forces

Congress

admittedly

it

It

creases.

arises from
lack of understanding of what is

feeling

exchanges

merely

one

will

earn

Approximate Range

30

of longer maturity.

new

a

available

average,

of mone¬

administered

as

the Federal Reserve. Much of

re¬

sav¬

credit

counts

of the
1890s.

criticism

a

area

advance

there

They

management poli¬

Treasury debt
cies

the

of

long-term

so-called

save

as

Dlv.
Paid

.60

i.

and

than

less

program

the

more

and loan

strangely

in

31/2%

sound
money and flexible interest rates.
In fact, if one reads the debates
in the Congress on this issue, it is
Populist

both

savings accounts in
banks, since that is
the maximum permitted by FederaL regulation. They earn about

for

for the
indicated

.60

result, the volume of longertdrm issues for cash, or resulting
from the refunding of maturing

the

most

accomplish most of

they

pegged interest rates versus those

solidly

the

Share

Earns.

is

1949..

The current flow of

As

income.

current

who

stand

institutions

for

to

extension

shortening,

commercial

and

adjusted

.89

Available

blood

3%

are

of

advocates

These

Funds

tried

debt

for

fact, about
mortgage funds
from these three

came

Individuals

seeing a re¬
old conflict betweeh

effect, 'we

figures

1950

ready .holding a Government bond
which through the lapse of time is

the

individuals

from

cipal and interest.

the

32

There Would Be

part

to

their expectation
purchasing power
repayments of prin¬

with

and

1958__

mortgage

ings is not touched by advance
refunding since an investor al¬

of

deposits in

the

funding.

banks—in
of

money

from

for

the future

savings

year

sources.

shrinking

a

from

commercial

real estate—will

or

bonds

to

through

,

last

money

higher interest rate

a

compensate
of

■■•v.;

mutual

harm is being

selling

funds

intermediate

with conclusive

us

more

by

two-thirds

investors 'iwho

in. a
account
or
invest
in
savings
fixed-dollar obligations —- rather

want

than

and

forcing
fear of

to

upward

Those

than in stocks

n

field

Mortgage funds come primarily
savings and loan associa¬
tions, from mutual savings banks,

the future

to

as

so

inflation.

I

in

—

from

the dollar. Nothing con¬

tributes

Pi

the

its

longer term.

here

17 as of Feb. 24.

record,

year

(Mill.)

Year

1959

an

of

have

to the mortgage market to¬
by large scale Treasury se¬
curity offerings in the 1-to 5-year

ment

i

to

come

tionary

value of

last

Rev.

at the

Furthermore, if the ceiling were
removed,
the
Treasury
would

day

aspects of debt manage¬
policy under the present
ceiling could, as time goes on,
raise increasing apprehension both

split

a
3-for-l split in 1954,
by the following figures covering the past decade:

of the mortgage market.

More

done

infla¬

the

Actually,

case.

financing

evidence that

ceiling would raise interest rates.
We do not believe that this would
be

home

in

have

not

savings institutions

Concludes

during the last

leaders

would

market.

savings banks, commercial banks
and savings and loan associations

Rates

Raise

Would

km

Removal.

months

of

pliers

flow

Time after time

position the Treasury finds itself

Believe

growth

Tampa's
2-for-l

1951

least

stability in the home
industry by insuring a
of savings into it.

steadier

.

the industry approximated

have had to pay

we

largely

Rather,

be¬

greater

building

that is the

Tampa Electric is one of the popular Florida "growth utilities."
It has been selling recently around 28 or at a multiple or more
than 28 times earnings, despite the recent dilution resulting from
the sale of stock early in February.'The yardstick P-E ratio for

important part of the
issue
would
more
likely
have
been placed with public and pri¬
vate pension funds,
foundations,
and other types of long-term in¬
vestors who
are
not major sup¬

the

prevailing at that time. This
certainly is not a desirable ar¬

Not

could

This

years.

done, I believe, at less

expense

out

lieve-that just the opposite is true.
The home building industry has

be

Does

area

OWEN ELY

been individuals who drew money

to

in.

the

in

BY

Tampa Electric Company

by

of

5-year maturities, and the

buyers

orderly and prudent manner will,
over a period of
time, contribute

However,

five

1- to

on

home

amount

maturities

than the rates

mem¬

could, each time it came due, and
under whatever conditions might

rangement.

modest

a

beyond

He would be forced struction. The ability of the Treas¬
that mortgage, if he ury to do its financing in
an

years.

refinance

to

econ¬

some

been

market

cash
borrowing and by refunding im¬
doing

have been

that

of the
taken

some

short-term

hurt

individual with a mortgage on his
three

stop

fully controlled

the

off

pression that such removal would

in

that matured every two

to

strait-jacket,
could have

5-year

pressure

on

SECURITIES

on the other hand, the Treas¬
had not been obliged to do
of
its financing within
the

building in¬
dustry have been opposed to re¬
moving the 414% ceiling because
they have been under the im¬

tory. The situation is comparable
to one that might be faced by an
home

embarked

difficult

understand

bers

the short area for
the average term of
the marketable debt is now re¬
duced to
four years and three
months, the shortest in our his¬

1»

Once

Industry

the last year,

fx

all

Removal Would Aid Building

auently and in greater amounts.
a
result of doing all of our

©•-I

ury

mediate

to be undertaken more fre-

financing

If,

on

diffi¬

very

PUBLIC UTILITY

buy mort¬

until they can further ap¬
praise this continuing drain.

rees¬

controls

since

gages

administer, small
of doubtful efficacy

is

a

un¬

omy.

As
Mt

government

peacetime.

short

then

of savings,

those institutions hesitate to make

inflationary

credit—a

refundings of maturing issues will
have

and

selective

of

use

cult

future

area,

the

in

within five years, and
total is growing. As more

debt is piled into

by

tablishing

matures
that

rates

dertake to control the

withdrawal

25

associated
represen¬

The

company's earnings were somewhat on the low side

in

1957-58—only 5.5% on year-end net property account, according
to Standard & Poor's — and the company sought higher rates.
An increase was

granted Nov. 1, 1958 (being fully reflected in 1959

Sept. 21, 1959, amounting
The commission estimated
that the latest increase would bring rate of return up to 6.5%
(on the rate base used by them).
Earlier the commission had
earnings) and another became effective

to

15

about

allowed

a

cents per share annually.

rate of return of 6.98%

for Florida Power &

Light in

indicated one-half per cent
"leeway" before rates were likely to be reduced. Tampa Electric
is hopeful that it can earn better than 6.5% through operating
economies and load growth.
While the regulatory climate seems
to remain quite favorable, a new man was recently appointed to
succeed Commissioner Boyd and an election for Governor occurs
connection

next

fall.

with

a

rate

case,

plus

an

rf

86

I

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'

I'

'

k

I* \W fM'W

I

ttKWttsr

mvc^iTCww'fMw^tf'

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Dim*

*1^.;;

mm *

(1194)

The Commercial and Financial Chronicle

serves,
the banks reduced their
holdings of U. S. Governments in

Money and Capital Market

1959
by
$8
billion.
In
1958,
equipped with ready reserves, the
banks added $8.1 billion to their
holdings of Governments.
This

Outlook for Rest of Year

was

Continued from page 1
so

that

in

moderate

longer-term rates

also the product of the stiff
competition
which
the
mutual
savings banks received from the
was

adequately taken into account,
the

decline

Perspective
Rates

in

Interest

on

haps it

1958-1959

In order to obtain

the

product

un¬

and hence the

popularity last

derstanding of the forces likely to

of the

influence

porate
had

$600

and capital
markets in the remainder of
1960,
it will be helpful to review the
and

sources

in

1959.

eral

money

ing

of

of loanable funds

uses

I

have

distributed

sev¬

tables,

a

investible

flecting

over

1958,
employment

rising

estimated

an

billion

billion.

As

conditions

commercial

and

by

rose

$4.9

billion

compared with
mer

credit

and

rose

by

in

of

Moreover,

billion

with

loans

1959,

decline

a

extended

$2.4

compared

improved,

industrial

million in 1958.

as

$100

consu¬

by

banks

in

1959,
million

$200

The net amount of funds they put
into
the
market
last year, $3.5

icy,

the

and

investments

billion, was $11.7 billion less than
the
$15.2
billion
expansion
of

around

loanable funds
1958

and

sources

figures

in

1959,

with

ures

for 1959

subject

still

are

to

for

The

purposes.

and

the

also

presented

comparative

of

uses

fig¬

preliminary
revision.

some

I

should perhaps explain that these

figures
and

net

are

do

new money

include

not

figures

repayments.

For example, in the case of life
insurance companies, the data in¬
clude
the
net
additional
funds
available

for

include

not

funds

such

sources

other

investment

and

obtained

from

amortization

as

do

or

of

repayment

mortgages.
Similarly, in the figures for the
uses of
funds, the data show net
changes in amount outstanding.

their

loans

1958.

Here is

and

investments

in

large part of the

a

the

There

to

total

out¬

amount

shows, of

estimated

is

this

compared with

little

need

to

that

course,
and

sources

1958,

the

uses

with

As

will be

What

the

were

component

the

somewhat

onset

of

to

compared with 1958.
associations

1958.

only

Their

the

had

total

growth

obtained
the

from

Home

which

includes

not

net

advances

Bank

by

System,

amounted

to $836 million
As is well known, 1959
difficult year for the mu¬

last year.
was

a

tual

savings banks, and their net

available

last

less
1958.
of

funds

$1

billion

they were in
partly the result

was

the drain

issued

were

than

year

This

of

the

by

borrowed

the

reserves

the

and

consumer

despite

a

tight

position, was made pos¬
by a heavy liquidation of

Banks

Reserve

the

credit

borrowed
reached

added

Federal

to

In

the

.

of

case

of

$12.1 billion last year as compared
with $5.0 billion in 1958, or a rise

than

is, of course, the rapid improve¬
ment of corporate profits as busi¬

more

in

1958.

The

accounts, such

Federal

the Old Age and

as

"magic fives"

by the U. S.

Treasury.

It

of

explanation

The

billion.

$7.1

improved

Survivors Insurance Fund and the

ness

National

last year until interrupted by the

Service

on

their

in

last

year, as
was the
The Federal loan

1958.

agencies, such
Federal

Insurance

balance liquidated some
holdings of Government

securities
case

Life

FNMA and the

as

Land

put a sub¬
stantially greater amount of funds
into

the

billion

Banks,

market

compared

as

million in 1958.
of course,

last

year

—$2.4

with

$600

Most of this was,

FNMA purchases of 1-4

family mortgages. Fire and cas¬
ualty insurance companies showed

steadily

activity

steel strike.

As

can

be seen from

II and III,

corporations in¬
creased their holdings of Govern¬
ment securities by an estimated
Table

$5.0 billion last year, as compared
with $1.0

billion in 1958.

extension

business

of

The net
by

credit

corporations in 1959 was substan¬
tially less than in 1958, but the
increase

net

extended

in

credit

consumer

by corporations

to
billion, as com¬
net liquidation of
rose

estimated $2.9

an

with

pared

a

(In billions of dollars)
«

'?■

.

'

—Securities—
State &

u. s.

Local

Govt.

Companies
Savings & Loan Assoc

2.2

0.1

0.3

Mutual

0.6

0.1

1.3

1.3

4.1

1.5

Insurance

—

Federal

Agency

0.2

Savings Banks—
Corporate Pension Funds

Family

0.9

—0.3
s

Credit

0.9

4.9

1.5

—

All

Sources

Credit

Other

of Fund'

0.3

4.9

„

—
.

0.6

0.1

—

0.7

*
*

A

Consumer

Business
Other

*

0.6

,

❖

1-4

*

Total

Loans and Credit

—Mortgages—

Corp.
Stocks

Life
.

Total

A-:

— —

6.2

'

.

—

/■A—

f

0.3

0.5

—0.1

7.4

—

0.1

—

—

2.5

—

2.7

0.4

—

—

2.2

Banking System:
Commercial

--

16.4

v'

•

Banks

—0.1

Federal Reserve Banks___

the

when

the

mm

--

—

2.6

8.1

0.1

2.1

—

1.3

0.9

—

--

—

—0.1

A

2.3

0.2
—

A "'

15.2

;

2.1

--

--

Total

been

low¬

—0.1

10.2

0.1

0.9

|1.3

—0.1
i'

State

and Local

Funds

1.6

U. S. Investment Accounts

Effectiveness

2.6

0.2

2.3

17.4

*

■

Government Institutions:

$400 million.

Measures

trust

million

$500

have

to

seems

corporations increased their loans
and investments by an estimated

as

quite
to

the tables
in Table I,

funds, there was an
estimated increase of $20,0 million
in available funds last year

government

Bonds

which has been maintained

target

local

and

1959,

1958

range

ered

and

state

Corp.

of

restraint

recently,

hold¬

Reserve

ings in 1958.

in

funds

loanable

the

in

porations

bear this out. As shown

.:

Savings Institutions:

small

a

reserves

the

greater role played by cor¬

of the

markets

i
SOURCES OF FUNDS-

tightened. By Spring of 1959

net

were

only $300 million last year, a
sharp drop from the $2.1 billion

TABLE II

monetary

position

reserve

of

screws

another

in

Loan

year,

Federal

Foreigners
There has been much discussion

SOURCES AND USES OF FUNDS IN THE CAPITAL MARKET IN 1958

Savings and

saving and
shares; it also includes funds

loan

The

the banks had moved into

a

spectacular burst of growth last
year, with their available funds
increasing by $2 billion more than
in

and

net

to

move

until

-experienced

moderate increase of $200 million
in net available funds in
1959, as
loan

last

business

authorities, and by the end of

banks

the life insur¬

seen,

companies

commercial

as

the

member banks were then restrict¬

were

1958.

items in the two years?

ance

of

loans

Quickly in

years.

authorities

$44.2 billion in

in

credit

recession, the reserve position of
member banks was permitted by

net

differences

was

year,

ex¬

that

audience

icy in the two

of funds increased to $58.7 billion
in 1959, or $14.5 billion more than

the

banks

last

increase

of Corporations and

Role

pur¬
securities

Government

of

abrupt change resulted from the
difference in Federal Reserve pol¬

ed
I

loans

modest

a

market

open

'

net

standing.
Table

increase

sible

1958.

plain

through August.

in

crease

in¬

of

in

reserve

as

For example, the data on 1-4 fam¬

the

tial

industrial

markets in 1959

ily

measure

increase

$12 billion less in 1959 as
compared with 1958. The substan¬

explanation for the greater tight¬
in
the
money and
capital

ness

free reserves of about $50,0 million
and was maintained at this level

mortgages

total

by

of

consider

Government

S.

Thursday, March 17, 1960

compared with 1958.

the

chases

Fund,

the previous year. In sum, as the
result of restrictive monetary pol¬

,

reflection of Federal Reserve

a

policy,

in

Coming to the commercial
banks, we see a big difference.

U.

of

.

Also, referring again to Table I,
as

as

and if you will turn
your attention to Table 1, we shall
the

holdings

.

securities.

and

$1.1

mortgages

re¬

contributions.

a

1959

$1.4

business

year

pension funds
million increase in

funds

over

year

for

other

stock market. Cor¬

common

The

comparatively big mortgage
commercial banks, with
1,-4 family mortgage holdings ris¬

uninsured

the

swing

period.

a

loan

the inflation and fear of inflation

better

a

also

was

enormous

two-year

savings and loan associations with

persist?

may

an

was

regard to dividend payments. Per¬
Some

..Mt'J

—

Federal Loan Agencies

of

—

0.3

❖

—0.9

*

0.5

__

,

—

0.1

0.2

0.1

2.6

__

❖

>!:

—0.9

_

0.3

—

—

0.6

—

Monetary Policy
The

effect

policy
to

Table

shows

II

Federal

of

be

may

seen

and

that

in

Total

by

III.

Reserve

referring
Table

1959

1.6

0.7

--

*

—0.5

0.1

0.4

2.2

■

—

--

All Other Investors:

III

Corporations

commercial

—

Fire &

—

Casualty Cos
Foreigners

0.1

Individuals and Others

banks added only $100 million to
their holdings of state and local

0.2

_

1.0

—

0.7

—0.2

^

'

_

■

—

4.5

—

—

—

—0.3

5.0

*

A
—

1.5

—

—

❖

0.6

mm

*

—0.1

—0.1

__

government

securities, whereas in
(as shown in Table II), they
increased their holdings of such
securities by $2.6 billion. Note the

—

0.1

—

'mm

'

•h

0.9

mm

mm

—3.1

—0.3

1.3

1.8

—2.1

—0.5

1.3

1.8

4.5

0.1

—0.5

10.1

5.2

4.4

0.3

—

0.4

2.3

__

1958

tremendous shift that occurred in
the
case
of
U.
S.
Government
securities.
to

raise

business

Faced

funds
and

with

the

need

increase

to

Total

0.3

Total Uses of Funds
*Less

than

6.0

0.6

2.3

2.1

5.9

8.0

8.2

--

2.7

44.2

$50 million.

their

consumer

loans,

the Federal Reserve restricted

NOTE:

Because

of

rounding

components

add to totals shown.

may not

as
re-

TABLE III

TABLE I

SOURCES AND USES OF FUNDS IN THE CAPITAL MARKET IN
1959

SOURCES AND USES OF FUNDS IN

(In billions of dollars)

THE CAPITAL MARKET
SOURCES OF FUNDS-

(In billions of dollars)
Sources

of

Funds—

Life Insurance

1959

Companies
Savings & Loan Associations

4.9

8.2

2.5

Change

5.1

6.2

Mutual Savings Banks__

,

1.5

Corporate Pension Funds
Federal
State

Reserve

and

+

2.1

0.3
2.8

—0.9

—0.7

0.6
5.0

1.2

Total

r.:

Others

Sources

4.3

2.3

14.7

44.2

58.7

Total

1.8

+

0.2

1.8

Commercial

7.1

6.0

4.4

-

2.1

-f-

+

4.3

+12.4

Total

2.2

—

+
—

7.9

—

State and

2.2

+
+

5.2

5.5

+ -0.3

4.4

8.7

+

Credit

0.3

6.3

2.7

2.4

than

44.2

58.7

$50 million.
of

rounding, components may not add to totals shown.




0.1

13.6

Credit

NOTE—Because

Sources

Other

of Funds

1.0
0.7

0.4

5.1
8.2

1.2

0.6

0.1

0.1

0.1

0.5

0.4

0.2

9.3

2.4

0.1

1.7

—8.0

—0.2

1.4

1.1

4.9

-7.7

—0.2

1.4

1.1

4.9

0.8

0.1

0.3

0.1

0.1

1.5

3.3

-

0.5

18.1

1.9

+
—

2.7
3.5
4.3
6.0

2.4

3.5

0.3

0.1

1.0

0.5

0.3

2.4

1.9

3.8

Institutions:
Local Funds___

—0.7

2.8

>:«
mm'mm

M

—
__

Agencies

*

Total

0.2

1.0

0.7

1.9

0.1

0.1

2.2

0.4

—0.7

0.3

0.4

10.1

Consumer

*Less

1.2

6.8

1.6

0.1

—0.5

All

Uses

—0.3

*

All

Credit

0.3

—0.1

Government

+ 14.5

5.5

Mortgages: 1-4 Family Mortgages
Other Mortgages

*

Consumer

Credit

0.3

8.0

Federal Agency Issues-

0.1

0.7
*

1.5

Banks_„__-._ —0.1

Federal Loan

Issues

—0.3

—

❖

Federal Reserve Banks

5.9

Total

—

Total

IBusiness

Other

Banking System:

+

U._ S.

Other

0.5

3.1

+
•

State & Local Government Issues

Credit

0.2

_

U. S. Investment Accounts

Corporate Bonds
Corporate Stocks

Business

Family

Loans and Credit——-

1-4

Agency

0.2

Uses of Funds—

Government

Federal

Govt.

—

0.6

+

12.1

0.9

—

'

2.4

Corporations
Foreigners
Individuals and

U.S.

Local

—11.7

2.6

Casualty Companies

State &

Stocks

2.0
Insurance Companies
Savings & Loan Assoc
Mutual Savings Banks— —0.1
1.2
Corporate Pension Funds

1.0

3.3

Fire

and

—Mortgages—

Corp.

Bonds

Life

2.0

3.5

Banks

U. S. Investment Accounts
Federal Loan Agencies

Savings Institutions:

0.2

2.7

Funds

Local

+

+
—

15.2

Commercial Banks

—Securities—-—-—-

Corp.

1958

2.4
'

__

.

4.5

All Other Investors:

-

Corporations
Fire & Casualty Cos
Foreigners
Individuals

and

Others

Total

0.3

+ 14.5

Total Uses of Funds
*Less

NOTE:

than

5.0
0.2
*

0.8

0.2

0.3

0.4

0.4

3.8

2.9

12.1

*

1.2

4.0

4.3

3.4

5.9

1.7

0.7

1.6

f.O

0.3

0.5

4.2

15.1

2.1

0.6

1.6

3.8

3.9

4.4

2.2

5.5

7.9

2.2

13.6

5.5

8.7

6.3

14.7

$50 million.

Because of rounding, components may not add to totals shown.

Data

are

adjusted to exclude Alaska and

Hawaii,

32.3

2.4

58.7

Volume

191

Number

5934

.

.

The Commercial and Financial
Chronicle

.

(1195)
*

$300 million in 1958.

well be raised

may

rates

shorter-term

on

securities

ment

The question
.to how high

as

might

Govern¬

have

gone

last, year had it not been for the
hea/yy purchases by corporations

>

*

outstanding volume

of

rise

corporate

bonds-increased only $4.4 billion
year, as compared with $6
billion in 1958. This was the
prod¬
uct of a number of forces
such as
the
great increase in

—as

commercial banks.

of

crease

only $300 million in
Finally, "all other loans"

1958.

such

corporate

sell

in
consumer
credit, which
place last' year—$6.3 billion
compared with
a
net
in¬

took

last

which aided immeasurably to off¬
set'liquidation of Governments by

loans

as

securities,

on

in-

level

profits which lessened the need to

r^pased

million less last year
1958.

bonds, the comparatively high than in
of long-term interest rates
The
review
which
discouraged the funding of made of sources and
.

net increase in availability

The

,.

foreigners' wqs a short-term borrowing,
and
the
startling figure in 1959. 'As shown slowness of corporations to ex¬
in Table I, it amounted to an esti-' pand their
plant and equipment
mated ,$4.3 billion, as compared spending in 1959 because of
great
with less than $50 million in 1958. productive
capacity built in 1956As

in

shown

Table^ III, jpost of T957,

well

as

,

these funds' were invested in U. S.

influence'of

Government

net

securities

contributed

and

thus

to

much

the

increase

the

as

steel strike.

of

able

funds

with

1958,

rates

corporate

investments

ers'

of

reflection
of

ance

of

was,

payments

•foreigners were able to build, up
their balances here. Comparative¬

'a hefty estimated'in¬
of-$5.5 billion in outstand¬

crease

ing

state

tance
as

otherwise might have
and

drawn

thus

which

been with¬

have

led

larger outflow of gold.

to

a

The sub¬

stantial foreigners' investments in

the United

increased

up

the

the

need

affairs
to

States last year points

significance of
manage the financial

to

the

of

U.

S.

Government

inspire confidence in the sta¬
of the value' of the dollar

bility

abroad,

The

as

well

final
of

sources

at home.

as

item

funds

in

Table

"individuals and others."
cludes
also

not

only

;

included

in

I

This in¬

individuals

but

unincorporated business

other

miscellaneous

is

and

It is

sources.

also the repository of all the sta¬
tistical

shortcomings
As

counts.

in these

shown

individuals

in

I,
might

the

funds

markets

in 1958.

as

these

figures
are
the
legacy of the huge budget deficit
brought about during the busi¬
recession

ness

the

first

half

of

late

of

1958.

1957

and

of

the

markets by Federal
the

the

financing, for

they do not provide any
of

in

exerted

pressures

refinancing

measure

which

the

Treasury has had to do with $80
billion of its debt now coming due
one
year or less.

in

Federal

agencies

increased

their

also

demands

on

the

of

have

kets,

the

billion

$14.7
and

figure

in

III

in

to

in

show

ferences

rising from

1958

billion

mar¬

the

Home

Tables

II

dif¬
It

years.

is

noteworthy that individuals' and
others' holdings of U. S. Govern¬
ment

securities

rose

with

a

net

an

estimated

year,

$5,9 billion last

as

compared

liquidation of $3.1 bil¬

lion in 1958.

Similarly, their hold¬
ings pf Federal agency securities

rose

estimated

an

$1.7

billion

in

1959, as compared
with
a
net
liquidation of $300 million in 1958.
Their holdings of state and local
securities also increased at

a

much

greater rate last year than in 1958.
Uses Capital Was Put

Turning
loanable

the

to

now

funds

in

The

1958.

include

Federal

FNMA, the
and similar

agencies.

principal

two

in

agencies

estimated

an

1959.

the

$2.3

debt

To
uses

Table

of

I, it is
significant that, despite the gen¬
eral business recovery in 1959, the

Loan

Banks,

The use of capital funds for the
financing of 1-4 family mortgages
last
year
was
$13.6 billion, the
largest
increase
in
residential
mortgage debt in any year in his¬
tory. This was $3.5 billion more
than

1958.

in

showed

an

Other

increased

mortgages

use

of funds

in

1959 over 1958, with the rise
coming mainly in the farm mort¬

field.

gage

As

might

be

business

recovery

tension

of

expected
in
a
period, the ex¬

business

credit

in¬

creased

sharply in 1959 to $8.7
billion, as compared with $4.4
billion in 1958.
These figures in¬
clude
not
only bank
loans
to
business but also trade credit by
business
Table

concerns.

I

also

the

sharp

for

the

Market

Remainder

1960

the out¬

and capital
basically upon

In

of

the

Ac¬

first appraise the

us

outlook

mainder

this

for

the

re¬

quarter
settlement of
annual

an

just

rate

below

of

$483.5

the

earlier

duction,

the revised basis,

on

three points in January to
time high of 112.
There

which

are

number

a

should

ahead

economy

1960.

push
to

rose

all-

an

forces

highs

new

in

One

of the strongest fac¬
the recovery from the re¬
cession
of
late
1957
and
early

tors

nearly $7 billion in the first
ter

of

1958

to

in

the

first

annual

an

accumulation

of

over

quarter

rate

$6

of

quar¬

of

billion

1959

and

Life

5.3

Insurance Companies
Savings & Loan Associations.--

8.2

7.2

Mutual

1.5

1.5

3.3

3.6

._

Savings Banks

Corporate Pension Funds.,
Commercial Banks
Federal
State
U. S.

Reserve

Local

and

Loan

Funds

..—

Agencies—
—

Casualty Companies-..
7 Foreigners

—

Total

and

—

0.2

i.o

+

second

In

quar¬

the

third

inventories

year

liquidated

at

an

This

an¬

was

again reversed in the fourth

quar¬

ter,

being

inventories

and

built

at

were

$3 billion annual
rate. Although the further
buildup
of

up

a

inventories

has

been

already

developing, I believe that as we
along into the Spring and

move

Summer

tories,

there

in

will

the

2.8

3.0

—0.7

0.5

2.4
12.1

1.9

5.0

Others..

1.2
4.3

10.5

58.7

Sources

+

+
—

—

46.8

—

will not

only

but

economy

the

demand

stim¬

will

for

also

•

5.5

State & Local Government Issues

5.5

5.6

U.

7.9

-2.0

2.2
13.6
5.5
8.7

9.5

S. Government Issues

Federal

Agency

Issues

Mortgages: 1-4 Family Mortgages
Other Mortgages
Business Credit

million

Consumer

Credit

All

a

car-sale

coming weeks.

a

good

+

0.1

2.2

the

bet

Uses




——

the

year,

Perhaps

which

The

this

con¬

we

were

1.0

1.2

plant

12.0

1.6

cerned,

0.5S

Commerce

0.8

will

and

and

0.3

annual

lion

58.7

46.8

—11.9

is

equipment

the

show

0.4

strain

consumer

suggests

a

automobile

further

of

be

on

credit

clear.

that

ment

government

The

government

and

goods

and

local)

is

they reached
nearly $100 billion.

of

third
to

fourth

or

GNP

will

have

annual

an

billion.
GNP

quarter

For

risen

rate

the

of

1960

about

10%

about

of

$525

year-as

whole

a

will

a

counting

are

measure

of

on

ease

securities

in

excess

of

their

expected tax liabilites, and
some
part of these holdings will
undoubtedly
be
liquidated
to
the furids to

tories

It is

create

ernment

raise

Bullish'GftP Forecast

observers

to

corporations today hold several
billion dollars of short-term Gov¬

by

total

a

the

ever, this hope may turn out to
be a rather empty one. Business

of

shown

1960

in the money and capital markets
the next few months.
How¬

impact

purchases

services

of

in

(Federal,

1959

Offers

this

espe¬

fact^ft^in the fourth quarter

of

Many

and local gov¬

purchases.

force

measure

a

that amount of debt in this period.

pur¬

This will be

years.

total

powerful

a

providing

Treasury can be expected to run
a
cash surplus of several billion
dollars, so that it will be retiring

total

local

ernment

develop¬

capital markets. As is
known, the Treasury's sur¬
will be seasonal in nature.

plus

economy

of goods and services will
continue this year the steady rise
which has been characteristic of

of

be

this

in the

well

mort¬

surface,

could

toward
ease

spending, I be¬
of
Federal,

the

and

the

During the first half of

Government

of

our

high employment
there

and

resources

and

plant

finance

inven¬

and

equipment.
Thus, to some extent the Treasury
cash surplus in the first half of
this year may be offset by the

flow

of

Government

securities

being made available in the mar¬
ket by corporations.
In the sec¬
half

ond
the

of

the

year,

Treasury will

moreover,

again be

tend

to

circumstances,

the Federal
Re¬
authorities will be required
to keep a rein on the
availability
of credit.

What, then,
the

the implications
business outlook

are

general

for the money and capital
market,
and
particularly
the

mortgage
Perhaps the easiest way
explain my views is to refer

to

Table

IV

which

of

funds

shows
and

sources

this

year,
The one

a

uses

compared

as

with

con¬

SEC-Department
estimates

--a

rate

are

•

modest

of

that

rise'

of

they
to

an

about

$34 y2 bil¬
quarter of this
The SEC-Commerce
Survey,

in

well

the

as

first

other

surveys

con¬

1959.

he

a

hence

year

have actual data.'

rough
to

lion

serve

about

in

an

1960,

than

more

of funds, we

uses

increase of $5.5 bil¬
corporate bonds outstand¬

in

ing

about

or

in

1959.

$1

This

the expectation that

spending
this
out

will

thinking

my

Starting with

be

we

outlook.

anticipate

on

when

However, these

"guesstimates"

illustrate

the

will
but

year,

able
of

to

rise

billion

is based

corporate

significantly

corporations

finance

retained

much

will

of

this

earnings and

the
liquidation of short-term Govern¬
ment

securities.

We

increase

net

have

placed

in

corporate
outstanding ($2.2 billion)
the
same
figure as in 1959
the grounds that the low cost

stocks

at
on

of stock
years

much

financing in the past two

has

not

influence

seemed

toward

to

have

stock

fi¬

nancing.
As

shown

in

increase

in

ernment

issues

Table

state

is

and

IV, the net
local

placed

at

on

a

a

seasonal

net

basis.

relief.

The

be

serve

of

borrower

will

upward
pressures
on
the
general price
level even though prices show no
significant
change.
Under
the

the

expenditures by busi¬
industry to build new

ness

6.0

will

as

9.9

2.0

this

for, the

year

So far

as

that

supply

year.

Total

Despite

carried away with enthusiasm for
the smaller
cars, but it still seems

6.3

...

goods.

surveys suggest that there
be a spurt in
car
sales in

2.4

Credit

Other

durable

excellent

an

sumer

1.1

+

be

downward
adjustment
of
early expectation of a seven

7.1

+

5.0

indicate

surveys

should

industry.
4.4
2.2

residential

"guesstimate" of
expendi¬

comparatively slow start in
automobile sales, which has caused

banner

Corporate Bonds
Corporate Stocks

.

On

chases

some

Uses of Funds—

the

different

the

—11.9

swing of nearly $10 billion in the
Treasury's position from a heavy
borrower to a small supplier of
capital funds. "

draining

market?

credit.

consumption

consumer

1.2

4.2

from

be

cent

0.2

3.2

to

seem

thing we can
certain about the 1960-figures
is that they will be
considerably

will
—

not

tures have risen steadily in recent
years, and I fully expect another
substantial increase this year. Re¬

0.5

1.2
1.1

in

accel¬

an

building of inven¬

which
the

be

the

2.0

This

undoubtedly

for

0.2

it, retires, debt.,

as

attendant uncertainties.

the

again

year

+

market

credit

the

year.

of

'

0.3

+

other

obviously have

in

last

quarter
were

this

5.5

the

will

nual rate of $1 billion—the
result,
of course, of the steel strike and

billion

of

that

0.5

14.7

and

Individuals

<•'-

3.5

Corporations
Fire

+

-

0.3

...

Banks...

Investment Accounts——

Federal

5.1

ac¬

calendar

Accordingly, it is still not very
clear that the Federal surplus can
be counted on to provide much

ter

Personal
Change

this

probably be
around
$510 billion, as compared with the
figure of $479.5 billion last year.
In this type of
economy we shall

$10.7

(In billions of dollars)
1960

that

estimates,

in

is

negative

assumes, of course, that the Fed¬
eral budget estimates
prove to be
correct.
Here
we
have a
huge

gage market.

to

"Guesstimate"

do

funds

the

was

The
means

in 1959, the Treasury, will
actually
supply about $2 billion to the

financing

clear, therefore, that I am
buildup of business
inventories.
The inventory
pic¬ fairly bullish about general busi¬
ness activity in the remainder of
ture
swung
from liquidation
of
inventories at an annual rate of this year. My guess is that by the
1958

Treasury

of funds

use

Government

words, instead of drain¬
nearly $8 j billion from the
capital markets, as was the case

in¬

in

Rise

"

ing

national ,the

our

Federal

ing

industrial and commercial financ¬

state

of

In

housing may not fall
1,250,000
level
this
year.
The reason is, as I shall
indicate presently, that thus far

cially true of state

pro¬

capital

the

recent

industrial

be

have a cash surplus of
about $2 billion and will be able
to pay off this amount of its debt.

from

away

S.

year

cutback in hous¬

a

Board

of

is

financing

mortgage

peak it had reached in the second
quarter.
,The
Federal
Reserve
index

U.

one

that

was

funds

figure for the

the

important.
figure of $2 billion
cording to budget

that

lieve

Consumer and Capital Spending

1959

out

state

to

by

This forecast may still turn
to be correct", but I have a

steel

billion,

belief

attract

residential

1959,

CAPITAL MARKET

of Funds—

would

government

highly

level

than

more

local

The

side.

the

carry

little

million.,, The

of

rose

to

1959.

out. to

spending.

mortgage

Despite the talk about

final

the

available

would

starts

the

after

in

dustrial and, commercial

year.

SOURCES AND USES OF FUNDS IN

Sources

of

strike, the Gross National Product

expand
THE

simistic

below

case,

and

10-15%

year

in

as

turn

may

but it still implies
historically high level of state

an

level of 1,378,000 starts
Some analysts were pes¬
enough to believe that

hunch

:

-

money

depends

business

ulate

TABLE IV

the

always the

eration

shows

for

cordingly, let

sharply

and

money

Capital

the general business outlook.

Moreover,

these figures on the net use of
funds by the Federal Government
fall short of telling the full story

the

1959,

low

construction

likely to decline this

ing.
and

the

on

residential

and thus force

1960,

Of

is

inflation.

background
1959, let'us

in

the prospects for the

Outlook

As

of

this

of

of

Money

look

same

funds made available in the

as

aid

turn to

now

billion, about the
of

the

resurgence

last

been expected in a period
of strong business recovery, great.ly increased the net amount of

others,

the

is shown by the fact that it
drained the markets of almost $8

Both

and
(2)
authorities
were

developments

on

Government

loanable

capital markets last
year, with the net new
demand
rising to $2.2 billion as compared
with a repayment' of $500 million

and

With

great impor¬

Federal

of

user

that

be

level

same

figure

somewhat low,

beginning of the year
widespread agreement

was

financing

a

year

ac¬

Table

of

a

the

there

ability of bank credit, and hence
the
money
supply, in order to

The

The

At

to

reduction

billion, in

1958.

likely

avail¬

remainder

attracted

funds,

local

rea¬

supplies;

monetary
required
to
restrict

government
bonds-in 1959, the figure was $400
million below the increase of $5.9

ly high interest rates on shorterterm U. S. Government securities
these

and

is

the

This

that for 1960 as
business and industrial

crease of about
10%.
Past expe¬
rience indicates that this estimate

in

available

avoid

Despite

course,

adverse bal¬
under which

our

following

about

Conference

indicate

expenditures for plant and equip¬
ment
may
be expected to
rise
to
about
$37 billion, or an in¬

from

the

.

.

interest

Industrial

whole

a

the

outstanding : was
only
slightly
higher in 1959 as compared with

7

the

that

McGraw-Hill* and' ilie

by

Board,

(1)
Heavy
demands
for
loadable. funds tended to exceed

The

problem^. The increase of foreign¬

for

rose

ducted

National

compared

as

sons:

stocks

1958.

in 1959,
indicates

have;

of loan¬

uses

depressing

aiding the
Treasury in meeting its financing

a,

we

which

from

funds

Of

27

i

»

gov¬

just

Mortgage Lenders

Proceeding along with Table IV,
we are
anticipating that the out¬
standing securities issues of Fed¬
eral

agencies, such as FNMA, the
Loan Banking System, and

Home
the

Federal

crease

about

considerably

Land

Banks, will in¬
$1 billion this year,
below the $2.2 bil¬

lion figure in 1959. Assumed here
is no substantial new authoriza¬
tion

for

Home

.

FNMA and

Loan

Bank

a

cutback

in

borrowing.
figure on 1-4:

Coming to the
family mortgages, we are guess¬
ing that the net increase this year

will run around $12 billion,
or
only $1.6 billion below the record
total (o£" last' year. • This
figure
might seem too high, but I think
it is realistic. For one thing, even
though fewer houses are built this
year,
the. - average size of home
mortgage loan is likely to con¬
tinue an uptrend.
More impor¬

tant, however, it now appears that
competition for capital funds
by other users of capital, notably
business
corporations, is not as
keen as anticipated a few months
igo.
It may very well be that
1he

the months go by

as

the demand

for

capital funds by business cor¬
porations at attractive rates will
drain funds away from residen¬
tial
mortgages,
especially Gov¬
ernment-insured
and guaranteed

mortgages, but at the present time
there is evidence that the yield
on
FHA mortgages, as
conventionals, is attracting

available
well

as

healthy flow of funds. My own
is that the pressure of de¬
from corporate borrowers
will not develop rapidly, or build
a

guess

mand

up
so

to

an

unusually

large

total,

that I believe residential mortC.nnt.inued

on

vaae

28

28

(1196)

The Commercial and Financial Chronicle

erful

27

tories and the rise of

gage
more

spending for

plant and equipment.

financing will be somewhat
readily available in coming

Little

be

to

said

about

the

sible

funds.

The figure for funds made

softening of home mortgage yields

available by foreigners is reduced
to take account mainly of an im¬

believed

was

pos¬

late last year. At the same
time, I do not expect to see any
because
be

I

believe

fully

a

absorb

that

there

adequate

the

funds

which

other

to

will

in

pect that the
be

1-4

Table

IV,

we

around

ex¬

below

last.

The

total

in

credit

extended

by one business concern to an¬
other, is based on the expectation
of

substantial

a

inventories,

in

general

rise

of

The

rise

increase

addition

in

for

assumes

consumer

automobiles,

very

durables,

be

year

including

mentioned earlier.

as

New extensions of
will

good

,

loans

consumer

net

other

in

this

field.

credit," covering

cellaneous
stock
to

credit

of

use

"All

of

uses

market

decline

funds

credit,

by

mis¬

such

as

is

expected
million.

$400

JLife Insurance and Commercial
Banks

Turning to the

sources

able funds in Table
modest

a

able

IV,

increase

investment

$58.7

some

swing

of

the

a

1959

in

Si

U.

noted

earlier,
how

seen

by

Govern¬

to

$7.9
repayer of

a

1960.

it~ remains

effective

As

to

changed
position of the U. S. Treasury will
be

toward

easier

the prospect

likely

very

credit

due

to

that corporations will
make

several

billion

dollars of short-term Government

securities available in the market
to
finance
inventories and
new

plant and equipment.
There are, in addition, several
forces not apparent in the sources
and

estimates

uses

nonetheless

have!

which

will

important
degree of ease
an*

bearing upon the
or
tightness in the money and
capital markets in the remainder
of this year. For one thing, insti¬
tutional investors started the year
substantial backlogs of for¬

with

ward commitments to make

The

net

in¬

loans

money available from savings and
loan
associations
is
reduced
$1

and
investments.
Thus, a sub¬
stantial portion of their cash flow
this year has already been com¬

billion

mitted.

the

on

there will

new

assumption

that

be any further ex¬

not

pansion

of

Federal

Home

borrowing
Loan

from

the

Banks

this

We believe that the mutual

year.

savings banks will be affected by
the same forces this year as last,
and
their figure is held at $1.5
billion.

The

porate
based

modest

pension
on

rise

fund

the growth

in

cor¬

is

money

trend in the

The

figure

of

billion

$5.5

cial banks is

based

on

of

commer¬

the expec¬

tation that
ment

liquidation of govern¬
securities by the commercial

banks

will

likewise
mercial

be

lower, and
expansion of

the
loans

will

be

that

the

As

some

reduction

In the

case

of

commercial

some

banks, there is
evidence that, regardless of

reserves,

quired
sound

banks may

some

to

slow

expansion

in

ratios

up

of

be

their

on

order

re¬

loan

to
to

risk

preserve

non-risk

if

Moreover, there is evidence that
longer-term ratios should de¬

cline

there

are

substantial

bor¬

in the

rowers

wings ready to take
advantage of available funds. An
example of this is the recent large
financing done in the U. S. mar¬
ket

by the World Bank.

Another

example is the financing by state

of

chases

by

of

the

Government

Federal

assuming

a

strictive

pur¬

securities

Reserve—we

credit

continuation

of

policy

are

a

re¬

by
the
general

monetary authorities as
business
activity rises to
high levels.
~

very
:

As you will see, we are
expect¬

ing

moderate

a

increase

in

the

money available from state
local funds. Moreover, due
to

a

better

OASI

of

-

money

this

million

of

net

new

The

figure for
Federal loan agencies is reduced
by $500 million due to a lower
expected volume of activity by
Home

the

year.

Loan

Banks

and

other

agencies.
The
a

figure for corporations

source

amounts

bonds

if

of

funds

has

been

as
re¬

it

were

issue

of

at

The

least

longer-term

not

prevented

from-doing this by the 4*4% in¬
terest ceiling.
As you know, the
Ways and Means Committee of
the

House of Representatives re¬
cently approved a plan for giving
the Treasury the
power to sell a

limited

the

expect that the
investment accounts
will

S.

U,

small

amount

at rates

Further,

we

produce $500

opportunity to

largely bonds

performance

fund,

and

the

rates

high.

of

long-term

above 414%.

there

is

now

an

creasing possibility that the U. S.
Treasury will be given the au¬
thority by Congress to carry out
advance

refunding of outstanding

Federal

debt

the

without

regard

to

4Y4%

ceiling. To the extent
Treasury
had
this
much
needed authority, and
employed
it, there would be a reduction
the

1-5

supply of securities in the

year

maturity range, and an
duced to $5 billion, or $7.1 billion
increase in the longer-term is¬
lower i than in 1959.
This lower
sues.
Thus, advance refunding
figure is in line with earlier years.
would tend to lower
short-term
It seems
logical to expect that
interest rates and to raise
longer
corporations
will
have
fewer
rates.

funds

available

investment
the

.

this

probable

for

open

year

in

buildup of




market

view

of

inven¬

Important Attitude of the Public

Finally, there is

one

very, pow¬

essentially political

Too Much to

the anticipated

There

gress.

field, but

they shift their funds

or

fixed-income

into

awayv

and

Accordingly

end '

an

to

inflation, and the fear of in-;
flation, will in itself be a strong
force toward holding down fur¬
increases

and

interest

in

rates

the

in

short-term,

"near-money"

the

flation.

danger

If

of

listening
sional

;

Treasury
were
given
authority
to
sell
some
longer-term bonds, and to engage
in
advance
refunding,
without
being hamstrung by an interest
ceiling, this in itself would not
interest

cause

ther, as
Actually,

rates

have

some

because

rise

to

fur¬

contended.

it

would

re¬

to

a

dollar, it would contribute
lower general level of inter¬

rates.

In

of

regain

the

Federal

U.

S.

right

debt

to

the

to
the

soundest

in

which

restriction

manage

and

financing
way,

Treasury

to

possi¬
that the

means

the

of

out its

carry

interest

should be eliminated.

I

sensible

that

the

outlook

capital

the

for

in

markets

of

this

year?

to

the

levels.

present

I

do

certain

levels.

continue

we

inflation

successfully
stabilize

to
So

far

de¬

likely

will

cause

the

show

to

too

be

document

held
or

departments
The cold
are

combat

residential

only ones about which there are wide differences
of opinion even
among the very elect, but are questions
that have
really found no answer anywhere in the world.

going too far to say that what these men
presumably trying to do is beyond the reach of. the

a

1946

if

only it

was

.

.

.

understood

all

on

are

sides

that

the

there set forth is to

unnecessary

restraints,

rights enjoyed by the other fellow. Of
have

to

or

in

remove

course, tariffs

on

their

own

ended,
feet, monopolies

trade, whether in the field of
labor, would have to be abolished. The

busi¬
now

brought us up from a struggling
young nation to
position envied by all the world.
It Will

New

all, this is

circumspectly and without
is the

facts

assigned
analysis

or

any

undue haste. What
troubles
of any

understanding of

slightest disposition jto suspect that

gone

much too far

along the

road

lectivism and all that
goes with it. So far
one could count the
members

ac¬

market

apparently total lack

already

York

research,

Require Time

a real world in
which we live and such
drastic changes as
those involved in
any process of this sort have to be
made

office where he will be associated

de¬

and

Only

objection to the Employment Act

Naturally, all this could not be done
overnight. Such
a
thing would be politically impossible after the
brain¬
washing operations of the New Deal, and, after

Washington office, has transferred

counts

no

will be

Exchange, have an¬
nounced
that
Harry Kahn, Jr.,
formerly resident partner in the

partments.

being

which

Stock

the

nutshell is the task here

almost innumerable
interferences with business
operations
brought to an end. In short, we should
have to turn back to the
ways and the modes of procedure

that mortgage
any
decline be¬

the

a

would have to be

Bache & Co., 36 Wall Street, New
York City, members of the New

with

with

not

ness

Kahn in New York

to

are

government ' undertaking, similar tasks.
that the problems here wrestled

is

and other restraints of

|

activities

of

truth

farmers would have to stand

by Dr. O'Leary before the
Savings and Mortgage Conference of the
American Bankers Association, New York
City, March 9, 1960.

his

action

strongly against the authors of this
against the others in various branches or

go or be greatly reduced as
rapidly as
feasible, various other subsidies now
granted to all too
many branches of business would have to
be

not

address

York

or

involved.

inadequately defended proposals for

readily absorbed.
♦An

issues

the

they seem
present

available funds

have had to say

though, that the unconvincing arguments

same

market

seem

rates

great deal

not

would

at

the

as

to

committee

a

special largesse and other "incentives" and
leave us
all to look after our own
personal affairs as best we could
so
long as we do not interfere with the freedom or

is
concerned,
it
seems
likely
that
mortgage
money will be more readily avail¬
able
this
year
than anticipated
at the end of last year, but it does
mortgage

judgment about the basic

all

tendency to rise, and, in¬

if

deed,

these

skill and

The fact is,
the

of

expect that rates will show much
further

more

best way to reach such
goals as
free individuals from all

funds,
interest rates
will
remain
firm
at

generally
around

of

this

party line than in reaching any balanced

If

money

pressures

for

businessmen,

utilizing what the witnesses

There could be

the re¬
I believe

mainder
due

and

great deal

am

Means Committee plan.
What
then, can we conclude

about

in

and

the

and

and

a

ceiling

hope¬
Congress will take
action along the lines of the Ways
ful

informed

essayed is that of directing "the
economy" for the pur¬
pose of making it best serve mankind. No
man and
no
group of men are wise enough to succeed in
any such
endeavor—and failure on the
part of all too many of
us to realize that
simple fact is one of the most dishearten¬
ing aspects of current events.

my

the

a

human mind. For what in

opinion, all who
desire
to
see
an
end
to
rising
interest rates should support the
efforts

well

are

are

in individuals who undertake to formu¬

economists

to bolster the

are

the

est

who

It would not be

a powerful source of worry
about further inroads in the value

move

of

few
them

give effect to the broad and vague pro¬
Employment Act of 1946. Even after
good many hours to the comments of profes-

zeal in

more

in¬

the

see

members show

is¬

further

a

of

late policies to
fessions of the

sues, has caused great concern in
the mind
of the
general public

about

are

most

would like to

in

bringing greater ease to
capital markets.
One
remaining
uncertainty
about the stability in the value
of
the
dollar is caused
by the
interest
ceiling on longer-term
Treasury issues. The fact that the
Treasury is prevented from issu¬
ing longer-term securities, and is
required to do all its financing

Expect

essentially politicians who
have never
given the problems with which they are called
upon here to deal, very much
thought. And some of those
who, like Senator Douglas are well steeped in the literature
produced by economists, past and
present, are hardly
possessed of that calm, judicial
temperament which one

obligations
equities

stocks

common

general.

rather two political documents in which the

or

Of course, it would be too much to
expect economic
erudition in the rank and file of the two houses
of Con¬

lar,

from

an

Democratic majority in
Congress and the Republican
minority do what they can to lay the foundations for the
coming political campaigns.
• 4
v
;
! ^ ;

reduction in the value of the dol¬

the

in

impressed with the

document,

they demand higher interest rates

not

in¬

is

Economic Committee without
being

decline in the value of the dollar,

prime example of this-is the U. S.
Treasury which would welcome

open market

too

as

say,

fact—for fact it is— that here is

for capital funds. More
important,
when investors come to expect a

growing out of

regarded

that

Continued from page 1

of the fact that
presumptive efforts to find solutions offer
apparently irresistible temptation to political pamphlet¬
eering. One can not read the current output of the Joint

been
a
powerful
force
toward;;
higher interest rates in the post¬
war
period.
This is because, as
prices rise, the higher cost of
building industrial plant and
equipment, houses, and other cap¬
ital goods, inflates the demands-

that

were

of

achieving a Federal
budget surplus. There is no doubt,
in
my
mind that inflation has

mand

the comparatively

in¬

authorities

in

to compensate for

Thursday, March 17, 1960

.

possible, precisely what the legislators meant
but such difficulties pale into insignificance by
comparison with the problems of finding the proper or
the best means (of
carrying these sentiments (as com¬
monly interpreted) into practical effect. These latter dif¬
ficulties are, naturally,
multiplied Several times by reason

inflationary expansion

an

ernment

and local government units which

in

seen

if

to

supply of money, and by
vigor displayed by the Gov¬

has been postponed because

be

is

determination

.

AS WE SEE IT

the

the

modest increase in available funds
from
Federal
Reserve
Banks—

can

to

in

Reserve

ble

earning assets.

com¬

lower.

experiencing

in their cash flow.

past plus rising employment.

funds available from the

of these
investors have

many

institutional

same

been

Moreover,

aid

confidence

the

Federal

ther

be

this

by

to avoid

in

net borrower of

of life

funds

ma¬

for

we expect
the avail¬

in

companies.

surance

of loan¬

for

1960,
billion

accounted

billion

much

larger than $6 bil¬
lion, but a rising tide of repay¬
ments is likely to hold down the

the

$2 billion of its debt in

credit

little less than in
a

is

years

the

activity.

consumer

with

ment from

the

to

billion

of funds in

1959, might suggest

two

business

business

of $6 billion, a

1959,

in

$46.8

However,
it
is
apparent
that
nearly $10 billion of the differ¬
ence of $11.9 billion between the

by commercial banks to business,
trade

of

sources

terial easing in the pressures of
demand upon the available funds.

This rise of business credit,

as

spending

consumer

total

compared

which consists of credit extended
well

as

and

uses

thinking, to rise around $9.5 bil¬
lion, or slightly more than last

as

ex¬

Significance of Treasury Surplus

year,

The

business credit is expected, in our

year.

we

rises.

will

mortgages
billion this

$5

viduals,

of funds in other

use

family

Slightly

Finally,

in

shown

than

countries.

pect a fairly substantial decline
funds made available by indi¬

be

available.
As

of

sources

proved balance of payments with

will

demand

remaining

should

further' rise

any

This

spired
the

needs

more

which

upon the part of the public that
inflation has been brought under

control.

Continued from page

than

down

the general level of interest rates.
This is the developing confidence

Outlook for Rest of Year
months

force

hold

Money and Capital Market

.

of

~

incept of true Americanism

on

as

Congress who

the

have

we

toward

can

fingers of

be

us

these

col¬

judged

have the
one

hand.

Volume

191

Number 5934

.

.

The Commercial and Financial
Chronicle

.

(1197)
It is .also

iact-that :

a

the witnesses called

even

ington by the Joint Committee do
concerned

with

placing upon
sibility to put
ness
cycles.
This
two

the

basic

the

demoralized by inflation. The U. S.

whole policy of
obligation and the responbusi-

as

iTke

and

+vf
these

J,, '

existed ror
y event tamiiiar to the

i-

nothing to

with

1

+

L

+

but

i-

Joint

equities, it enjoys
considerable latitude in the place,

you

Reports

dis-

are

mind it should be clear that there
is 110 P°int in buying common

years

stocks

Economic
heartening documents nonetheless.

today.

At

represent

current

the U' S' but rather

:

levels

faith

in

lack of

a

dis-

tended

T-wTTArcl-iAA /\ia4I F1 Vv~/l} LIII
£7M 1/
CnwtinnipH

frrvm

several

^

EIX1IES

Reliance

U*

•

doctrine of prosperity
through babies is questionable.
massive

on

J_t/Vyv/

feei

ket-

.

#

for the

,

Coincident

with this

home

af

in

Wall

Street

question—

one

buy gold in this

„

,

have

been

funds

were

stocks;

heavy

times

when

for

and

some

safe

a

and

If

bank

a

the Govern-

goes broke, they will surely
seize it.
If your gold is in a safe

deposit

box, it may or may not
seizure. Any man who goes

escape

to

stocks.

rel-up

the trouble of

buying gold had

better go to a little more trouble
and bury it; otherwise he'll
squir-

bunch

a

of

for

nuts

some

rat to eat.

argu-

wanted to be there in the ments presented in this paper and
place, but was forced there are impressed by the merits of
through fear of more inflation each position, but have found from
and because its owners embraced
long experience
that
the
only
the illogical belief that one can practical way you can manage
make money buying U. S. com- large sums is by the balanced fund

deposit box.

ment

months

They have heard all the

"

a bank or place it

holds your gold

Past> they have been heavy buyers
°* Treasury bills. They are beSlnning to acquire some foreign

and

Me*'

Africa

either leave

in trust with

in

every new investment
dollar went into convertible bonds;

Present>

South

ca^

You

never

....

period of adjustment for
economy and the stock mara

o.

the

This

(2)

I Mim )

otcilkj
4.

for

by the injection of a great
conglomeration of frustrated investment money which
doesn't

r\nr\

certain amount of austerity

SCHOOL

reasons:

(1)

-i

HQ

l

-L.

?

r^nno

^

GOLDEN

-1-1

when

buyers of oil

at

The stock market has been

only

Switzerland

ic0.

practically

do

not

is

Si"ce yo,u

stocks

*

■--

matricuiate,

There

how to protect yourself

sortofvT efsewher^PanL^
securities and

prope^twlU b* 'ed' meTnt ° "7 tm°"eky'
wlll keep these fapts m
To Illustrate: there

If

,7

place to go
them,

no

take

stocks—but

.common

in the

who'cherLh

Those

freedom will have

situation which has existed for

a

o^he

grelfLa

a

and

is, of course,

it the 50-50 school—50% in bonds

wil1 g0 under and the S°od life and 50% in

this

end to what have become
known

an

three decades

or

of

error

government

Wash-

to

not often appear ereatlv

29

adjustment

_

_

_

_

,

first

Gold Mining Stocks
This

brings

the

subject

of stocks in gold mining
nies. They possess two

compa-

owning gold bullion.

One of

over

to

us

virtues

in the U. S., the economies of mon stocks because the dollar is approach.
these is obvious: income; the other
spending . to
achieve
perpetual Western Europe and Japan will going to perdition.
If we cross
Some critics have declared that conjectural: immunity to seizure.
boom conditions, amounts to re- be
experiencing strong growth the Rubicon and make sound an
they do is average wise moves
In the nations where gold minliance on printing press
money.
through the development of their money, a number one objective of
against blunders, and that if they ing is important, the Government
(3) Government debt is a prob- domestic
mass
markets.
Their government, a lot of water will
knew what they were
lem if for no other reason than costs are low.
doing they is not likely to seize the property
They can easily have to be wrung out of the stock would
always keep their money unless that nation goes completely
the fact that so few
people have change and adjust. Labor will not market.
desire to

any

(4)

nations

and

Western

Japan

the U. S. with

European

will

provide

increasingly

severe

competition -for world markets.

(5)
nf

duplicate

iQhn's
iyau s

thp
me

of

rlno+vlnl

A^oo-nno

dustrial
to

the

thp
ine

performance
Tr,
In-

uow-Jones
o,,U7

Average will have

to rise

nearly 2,000.

sible
are

This is not impos(stock prices in Chile

all

at

supposed to

be

11

times

1953

levels). But if this does take place,
it will come about as a result
of
rampant inflation—and not as a
of

consequence

the

arguments

P%>rLy ihl%SCM°°»

•„

0

recent

iu /
that

steel
;

I

>

?7agi

The

Buy

climate

Tanan

not

smart

very

raging in
South
burns out, opportunities
uow

^elop

there.

Africa

de-

may

Likewise,

worth

is

America

South

keeping

an

eye

View

Investments

on

To summarize, if

money in stable, newly industrial-

On
•

•

!

,

.

to re-examine

us

of

the

the

tt

U.

-

.you

time for

with socialism

up

acquire

School

safety which
populations that are

from

may

other

e

"Buy Foreign Com-

Stocks School." For
years we
have felt that the U. S. was the

mon

if

vou

be

confiscated

"Castroized."

or

h

h

.

j

5«+oc*rifTr

Either

nf

tt

t

rm;

q

on the integrity of tke u- s- Gov"
ernment
eilHUeill

don't
UUIIL

or

UI

bet
UCl

all
dll

at
dl

iust
JUOt

learned

very

rather

a

vour

*pbnp V
gons. '

If

money

Ly

bhls

bet

you

for these

on

rea-

'

A financial crisis lies ahead. Bef

.

™

resoive(j

things

get

may

ably remain high for
otherwise

people

the

do

won't

long time;
save and

capital the world is
Yields on long-term

starving for.
bonds

a

not

reflect

this

of

fact

bills

roll

and

them.

and

over

over

with public funds. If it
sible

to

each

day

S1D,

get out of bills and into whatever
reallv want

vou

to

own

Reviews

*

In
man

;u p+7,

iand;

buy

stocks

common

pessimist

,

,

^Vm.ng

that

,

just

is

A

...

I

what

framework

the

of

-j

times,

wide

balance

or

in
in

swings

do

as

-

a

money

:

fast

as

STOCKS SCHOOL. Opportunities

widP

exist~the Problem is to take ad-

-w

nated world, trade.^ The
.going, was
so
oasy
that, we permitted /our
costs to soar.and to
get all out of

line

with

tions.

'

the

costs

of

other

na<

v;/ -, v >:>;/

Industrial Developments Abroad
Now

:we

Russia-

are

the

on

and

Japan have new fartories which
employ the ;latest in'.advanced
mass

production

costs

aJe

year

they

vote

&.

technioues

far below

find

it

oCrs

Their

the

are

imbalance

slow

to

growing
to

possible

to

portion
foreign

de-

of

^his brings them to
long cOmpetitfonwith u?
underbid

H^nce

us

and

their currencies

^urirepc^s

"

their

markpt^

and

can

head-

this

shift

in

becomes

do all

we

can

clear
to

information;

but professionals.

V? y-

the

,

advanced
a

of
,

that

we

must

hold costs down,

den.

The

barrier

ding must be
,

nations

larger share
of

and

u

and,

must

of

this

as-

bur-

featherbed-

overcome.

.......

the

d0uar

Should

wm sefze
seize

an

gov-

privately
privaieiy

au

held ^old within their boundaries.
ption)

miaht

orove

Therefore

t

make

vocates

^

er-

old

ad-

point

in

a gooa pomi
the purchase

recommending
fn

an

a

aood

a

make

the

rnthpr

man

?
stoc/cs ra ner
0UUl^

in
of

anld

of

t an oj

a

g

W^ TIllt (

^

tTOVP

XI^

•,

,

Qppi lT»lf"ipQ OlTPT'Pfl
vl*

Glit/iyU

Cruttenden

podesta

First'

The

Lincoin,
agers of

Trust

Co

are

,

and

Company

Nebraska
the

&

of

co-man-

underwriting

group:

•

.

racy

totalitarian

over

forms

of

rants;

represents

sound

a

position

those affected by a
ciary responsibility.

^f^Tffue

heavy

for

fidu-

and

holders will have the ready cash

u-

+•

A

+

a

SCHOOL

ad-

itiE bigg bghuug ad
whetner

is

life will continue
hpli^vp

or

that

our

be

the

way

destroyed.
TT

They. believe lbat tne u*
remain

mocracy

a

great

power,

and the right

of

s

that

will

and the dollar's

maintained.

stock, $2 par value.
The

►

power

austerity, deflation, unemployment, and hardship. But they
believe the public will be willing
to pay that price.
some

since

bill position is remarkable

than

appears

on

ready funds to

emeraencies

vestment

the

nealiaible

exin-

have

that

accident

aiWays stand

as

risen

time

which

is

a

glorious testa-

a

due

Feb.

form
^thsome 100% money
^sa
are priced a oj
p]
crued; interest. The detachable
entitle

warrants
chase
for
of

50

holders

sfiares of

each

principal

$^000

debentures

to

at

$10

pur-

stock

common

amount

share,

per

through March 1, 1964, and at in-

prices thereafter through
March 1, 1970, the expiration date,

Redemption prices are scaled from
104%

will

tv
.

.

.

This

.

school

largest

speaks
of

amount

for

the

investment

funds. It represents balanced
tual fund money, clients of
vestment advisers,

tions,
most

For the sake of argument, they

Its

most

many

pension

trustees with

philosophy

is

rity of its Government.

I.

•

u

nluq

acCrued

opportunities
.

nrippd

hank

rrU„

^

Things are changing now. The
Pu^1c ,1s getting wise. One of
these days the public will seek

costs.

The Diversified Portfolio School

Investments

as

125%

printing press

prices

"

debentures,

at

«io

A
A

interest

to

common^iftock
share

Der

rof,ecafrus Proceeds from the issues will
it provides: complete ment to the faith the American
safetv
plus
income•
outstanding rtuKiin
in
intP?irom me issues win
sajel1y\ P.,.* mc°me, ouisianamy public had in the finanr-ial integ- beProceeds the company to repay
financial
used by

-loH

All of this may mean

The Logic of Bills

elastic

^J111 marketability;
de-

of private
done away

purchasing

to ta^e advantage of exceptional 0nly
more

That

m0ney.

300,000 shares of the
class
A
common

corporation's

.

mavOim

LaSJ hell™\ they+will be), bill traveled road of

111

Perhaps

we will see a wave of sentiment
in favor of
terminating the foreign
&

ao

de-

,,

■

ment

The Bill School
rpu

affairs

we

I believe foreign

happen

.

strengthen Ing'to
strengthen ing to

programs

.

foreign

a good share
of recent property will not be
increases must come out of with; that inflation will be
stopped

sume

same,

Zt
School
Those embarking on this invest- rnent proving false may tuin out
?®'
ment course should Practice di' to
asf,weS°T f Pointed out . when, so this "School" argues
versification on a national basis
the statement of the position we abandoned the gold standard
and should invest no more in any of this school.
in 1933 and adopted a domestically
one country than they can afford
If future stock prices are char- non-convertible
gold
bullion
^ lose,
,
' 1 actenzed by v olent fluctuations standard, we started on the well

are

corporate profits and Federal income taxes.
We must take a hard
look at foreign aid
other

..

esotocyam
the field l all
ficulties

Probably
wage

Sch®01

0f

and

sickenina

because

They never hit the jackpot, but
they get there just the

•

•

income tax regulations; capital government Every substantial inwithdrawal restrictions. These dif- vestor should back up this plat-

Thpv

K

School"

does

^ove

Thev

thev

•

nations
I.
It

them.
Those nations} a favorable light will

"The;

cor-

SGZernment

inflation

ernmenis

mern-

(or Gold

prove

another

vaiuation
^

will

J.they are always in business.
offering
for
public
sale
today
The position taken by members
(March
17)
$3 000 000
Walnut
grow at a raJd rate} bu^it wUl
of THE BILL SCHOOL is based,; Author's Attitude Toward "The
Products Co^ Inc
15-year
not be .easy to make satisfactory
on full faith in the financial inDiversified Portfolio School"
gl/ %
sinkine
fund
debentures
investments.
Investors
are
contegrity of the United States and
The thesis of ((THE D1VERSIwith common stock purchase warfronted with some real problems: the ultimate triumph of democ- FIED
PORTFOLIO
SCHOOL"

GpW.movements herents

show

.

t

they feel it isn't wise.

he

Attitude^Toward

"The

taken by the

BUy GOLD

theU

jlr0UQu

will

as

Toward

GoldTtocks)

SCHOOL

^Tf

on

,

Year bv

'

productivity

of

mentioned in

inadequate

defensive

Western "Europe

vantage

Author's

Stocks)

on

they

years,

correct

ofPTLE

in

onpratp
operate

wno

:

eniWdgfhP^hPOPfif ofP« CwnHHd

^ 'on
.

position.

tnose

.

take'

you

School'

the
the

distortion

At other times, as

past

Attitude

Buy Gold (or

Smiss

cause

to the

you

.

the gamble

15

Author's

balanced

spend his
As things work out, over a long
gets it; an' period of years, they enjoy far
only safe place to invest a dollar.
The next ten years will substan- "optimist will buy Treasury Bills, more
versatility in their investNow things are
changing.
^ . :tiate the position taken by THE
You either win with Uncle Sam ment activities than appeals .on
Alter the
war, Aye had a large BUY
FOREIGN
COMMON or you don't win at all.
the surface.
;
•

School"

That

Sometimes
they correct this imbalance quick^
our

'

ernmenis

fi

At

eold

first
IlTSt.

.

attraction.

stock market

whn

or

clean up, unless

+

PiPanpr<;
CieanerS

such situations,

portfolio, investment funds attempt to eliminate those securities which appear to have lost

or

cPn

<fcinn

eold

the Government takes

security and industry
types, by channeling the bulk of

the

<S70

hold

vou

will

" ^,TafI„0Xt

money.

Coincident with the policy of
most favorable purchase within

crolrl

nnnrp

If

r?

fu

iatPr

nr

an

knows?

promising

new money into
year after year.

choice: Canada

your

Q0nnpr

pos.

horse

in

shortsighted

a

then

'

were

winning

formula plans.

Bills

summation:
wni

of

the

So, take

South Africa.

of

They know this can't be done. But
they do know it is possible to
practice purchase of the most

Ay»

Advantages

Treasury

justment.

pick

people would do with their

in

After the crisis has passed,

appreciation

their function and responsibilities.
They are not employed to gamble

_

spend

nana, n you you reany want to own.

Author's
Attitude
Toward
the
"Buy Foreign Common Stocks

as

a

S. stocks at this time,
be buying into an ad-

the

as

hand

i

♦

infla-

and

communistic.

this

clever surface observation but not

very thing hap(bad inflation), that the land
speculators anticipate, land will

provide

you place some

horse.

regard

pens

on.

Concludes

best

They

either, for if the

looks

Op rmanv
nn

+ion

Common
common

investment philosophy

thesis

in

iayorapie
in
Japan,
Germany,
Britain
TtnUz
Britain, Italy, onH nnrhono Mnv
and perhaps Mexico.
As time goes on and the inflation

fed

s

~

Foreign
ruicigii

Stocks

>-

is

investment

favorahlp

arises

.u

•It

is

and inflation.

paci' tic market, plus the

point painfully .clear.
ti

our

land

a

The

The

Buying

ized foreign nations, you get the life, but they must eventually,
benefit of a superior international Therefore, if you buy long-term
competitive
position,
plus
the bonds today, you are purchasing
definitely nromising notential of the domesranital
loU
Rnv
onlv
waae
vact
Promlslns potential ot tne domes a capital loss, tsuy only 91-dav
yi aay

f

'

made

ap-

Abroad

UhX+ hGC^e a
S£
? enough this
tnwnrH
? bulllsh attlt.ude
thi ^
'
curJen} -JPyzes..
The profit' squeeze
is

on.

governments

stable and tneir populations

pear

ism

•

m,5

L

Sf! ^ n?!™

Their

pre apparently fed up with social-

If stock prices in the 1960S

to

are

Their

currency position will continue to
improve.

the

on

be able to thwart progress.

it.

pay

Russia,

deficit

mu-

in-

founda-

systems,

and

banks.

simple:

to protect itself.

be evident to the living and to t e

capitalization
of
Walnut
Products Co., Inc. will be

dead.

lows:

The

stem

Federal

the

sovereign
gress

can

Congress
there

The lesults will

borrowings of $4 500 000 and

ba
oorrowings01 ^.oou.uuu auu
to replenish working capital.
Giving effect to the current offering and application of proceeds,

tide.
power

Reserve

Congress

and

prevent

won't.

preferred

is

598,370

the

only Condebacle,

the

History proves
to stop gov-

that it is impossible

1,000 shares b%

cannot

stock,

shares

$100

class

Grove
fol-

as

cumulative
par

A

value,

common

stock,
$2 par
value;
l,79U,zzu
shares class B comnaon stock, $1
par
value: and
and other loans.
Walnut

Grove

$5,908,732

banic
-

Products

Co.

and sells

World

its,

developments




suggest

a

event

we

will

be

devoured

and

try, and

even

maturity.

Some call

bigger doses.

erals and pre-

min-

30

(1198)

TTT1

W
Tf

The Commercial and Financial Chronicle

j_1

J

T
XJ.C41/

Tj^*-C-L•
P 1TT1PS
IX
vivy

t/XAV-/

A

system

thole

nS

a

in

1958
1958

leveled

xo trie

and

lows

1958

ning

nearly

laax, U52-

in

In

the recession

in

late

1957

doubled

it

1957

begin-

unemployment

Real

income

of

more

try to find

Rus-

some-

tendency to
ground for

a

common

^Lte makTng slrious Identic

sympathetic

read

about

brief,

and

shallow
Great

flow of gold, we see automobile
imports rising and exports falling,

farm surpluses were

and

tax

learn

we

other

some

that

nations

business

our

than

was

system

too

There
fessed

are

many

self-con-

more

prices have plagued

is, perhaps, an overly simple
picture that has just been painted
of the way we as a society have
been influenced by the Great De-

the

Fewer among

think

us

of

we

have

have

us

come

event, rising prices
be preferred over

—,„h

much

are

,1™.

close

to

all

demand

Within

excessive.

not

was

the

broad

totals

The

the

changes were even more mystifying. For example, sales of American-made

automobiles

vear^go level?
ana
ahd

1958
19D».

in
In

in

fact

fell

below

1956

in

1957

1958
iudo,

In addition

even

45%
<ko/o

aniomobReto

tte

d?strv in each year
dustry hi<Lchvelr
levels.

year-ago

these

below
below

was
was

Yet

each

in

of

the price of new cars
did the hourly wage rate,

years

rose, as
'

■

/
* ■
These developments and others
called for explanations. Was there
no

longer rhyme

economy?

nor reason m

Just

what

kind

the

of

best

time, Americans

Rhvme and reason have not left
xtnyme ana leason nave not left,
said. It is just that we have

type mflation

nas

given

Russian

Us
us

inflation.

Briefly,

the

potential

it

™enonxy

these

prevent

has

Rishtlv

tionseaLSlarg?iaabofunioCnJwere
laige labor
and

unions

were

powerful enough to set prices and
wages

irrespective

market
thus

ot

conditions.

pushed

current

Prices

higher

by

Svf' demand
demand.

®

cessive

bett

^

expen-

phisticated

fed

lotb

a

better

b'etter

d

better

better

than

other nation have

we

we

and

were
or

in

anv

eveTbeen

Y

Lookin" back at the section that

Debate Over

Newly Developing
Capitalism

r

In

a

i

a

j

•

i_

a.

•

related vein, but not speci-

ficallv

briefly
1949

depicted how

some

y y' f 5?

changes

f

we

are

parent. For example,

were

quite

cars are

\

get-

associated
y associalea with cnnditinns
wim conditions
the three years
observed, much
was
written and
said
about
the
"vw?
;
• +
xaD0Uli me
ew
capitalism
that has been

be

evolving

States,

ernment pretty much is taken for

called

granted; the public debt doesn't
get as much attention
as
con

■

ca

m

.

What

the

in

might

aissez

faire

United

loosely

be
had

economics

been

a, essv than totally adequate
of

p ana ion

for

quite

our

business

time.

some

It

ex-

system
still

was

tins
xmg shorter ana less nowerful*
snorter and
s p vv
,

one

considers

obsolete'

the

socialism

stock
seems

not

oDsoieie, suLiaiism seenis nut
an

sumer

issue

any

to

lu
longer, Big Gov-

debt, prosperity and infia-

tion are taken foi the noim, and
unemployment and business dis-

usff, as, a. m9re
w

xate

icMn>

is

x

xy^u s. .by the 50 s, develops

spplr

.or less official tress are abnormal.
+imeln]STiaij ln
Other things have not changed

a

*n

our

ecanomy

such

were

So

much, however, or it seems the
more they have
changed the more

Ipw°Ur business system to they have

wnprVJT
-f
+ne attempts at lorgtxxfn
JustAtlc?llpn jell into
that said
,, ^ateg?rles:
those
.nIP+nCeS'^oms' and
i! %e e~
visihlp
harxri
^
+-+^ m~
Tn

u

+

incr

moin

rocmi-0

^m

stayed the same. The
impact of television on our mores
is still being widely discussed,
Grave problems in the farm, coal,
and railroad industries remain
unsolved. Labor-management
strife is in th.e news- The ca0 for
a
new
busmess creed grows
iouder but is otherwise un-

/-J1"!
1
1? changed.
said
that
tL
those wLo
The changes just mentioned and
thp cuddi™ L^W+,m+a!Ja+gerS -are
the things that haven't changed,,
nHpps
nrnfi+c
determines of course, are important. They are
patinn'm
j,!' ?• rdsource alio- also fairly obvious. We have only
But
in
Ih!? n3y,4
to look around to see them. It is
thmiPht th** Tioo
1
more interesting to try to discern
velonmpnt
nf
f I"
some of the more subtle differcreed
c+iii
^
business^ ences between our society in 1949

thrmcrh

nArhonc

o

+

fniriLLn' i/fowf

a

j

o

j ,

k

we

■

u

p!!,!
25

0n?i and 1959~^keeping in mind the
0
very substantial improvement in
thine Plnselv akin
Su^?" ?ur lliaterial well-being, keeping
has
as
mnph
qIU ^obably in mmd, too, that improvement in
business rommnnifS a^
^+u
^aterlal well-being has connewer nhilosonhies
tributed to these other changes.
In the latter iQsn'c
ir^,+
seems safe to start out by
evidences
of
Russian
saying that one change in our
achievements had
trc™*^
society smce 1949 1S that differimnact on our socictv
fnCGS among us have narrowed. In
4
1957 the Russians sWkid P
part 9 !east thls ^rows out
bewildered
us
with
their' w iV ?,economic facts of life in the
Soutnik
Altitudes of the Arniri
S' Pr°P°rtlC)nately fewer people
ean people have changed dr?sti>"
are VGry P°i°r °r Very riCu' Many
allv since that time
drastic- more people are somewhere in
Surnr'isincriv

laissU

feire

n

n

on

ui

.

a

At

the

least

our

subconscious

society

seience-stricken

It

becamj
was

as

con

if

we

s?ddenlv saM to ourlelves "H^e
^us?ing around with uZ
tussing around w th

we

are
aie




use-

of^s
nlr

own

health.

forever

talking

our

we

we

and

,

don't

the

in

incomes

our

our

about

We're

learned

.,

.

lesson,

a

but

probably
-iust as affected by It?1 We abhoV
keing
considered
"square,"
al-

^

•

•

'

M

g

.

in any even1: it S how

,
,

of the period, to rid ourselves of the lingering depression
psychosis.

been
in

J

.

year

were at

.

P^bly f3 ^ fh^ld

u

t*

v~

+u-

n

•*

f

in

the

50's

will

Wau^mhahlvTn'lv^ stultlf5'ln® JE°'v
only
partial
release activity

cessive because,, probably,

a

us

erosion

few ImpressM& fr0m tie 50's in the 60's? Very likely.
i
have been etched deeply enoughAs a potential depression sinks ■
into the subconscious of our so- further from view, other economic •
eiety to" change Substantially how problems will probably be seen in
; . V
new .perspectives The
persistent.
rAnd they are not necessarily rise m .over-all price levels may :
■

the

lmpressions-dhat

come

have

ers

sai&ythat

feels

present

at,

America

be

glibly accepted. It
a
problem in its

so

seen

right.

at

humorless,

be

not

lm-

mediately to mind. Some observ-

may ?

as

This

likely, if,

will

be

own

-

more

even

•

is nearly sure to hap-•
influx of foreign goods.
continues.
Price
comparisons
among nations may loom larger inthe sixties. Nearly all of us in our 1

a

ashamedPr-and pessimistic,
Maybe we do, .but these impressions are the products of a mood
of the momerit?They grow out of

as

the

pen

though most of us have a hazy Russian moon rockets, quiz show society will probably be in more
impressibtf "abciiit just what that scandals, and' ^the steel strike, of a mood to halt persistently ris- •'
means. Foreign goods are more They will
pas^;;: •
ing. prices Therefore more likely'

.

Ilkely to appeal to

For the

u3'

other impressions will

ai.ieast\ they stnkfir..us, as "

E?lng dlffarent and sophisticated,
They provide variety

qumin£

in

our

•

f

con-

djffprpnpp.

all

narrow-

arrnnd

11<;

i aiiierences ail arcuna us

?

In fac^ the narrowing of difh
ferences in incomes and elsewhere
.

Drobablv

havine

us

iaree

a

effec.t

afford to do nearly

can

^.be

same

thing

we

bave

a

the next fellow,
0f compulsion to

as

sor|-

something

style trends
establish.

different.

are

more

When

almost

pervasive

we

neonJp

as

point to it. Women's

in

be

dominant

no

to

clothes

theme

gleaned

from

gieanea ipm

society think
m,

are beginning to
they like, think they
look best in, feel gives them individuality,
distinction. - Men's
clothing
stores
must
carry
a
variety of sujt styles; Ivy, Con-

what

np^pr
never

Men's

shirts

eyelet,

spread,

and

tab,

spread,

button-down

semi-

as

if

new

a

derbird,
Corvair, Corvette, Imperial, Dart, Falcon,.Valiant, and
Lark

are

tions

to

all

rather

the

recent

automobile

sweep-

ourselves,,
achieve
an
through - our
spending

patterns that

we

feel

we

are

los-

ing elsewhere.
In 1949 it was possible to
that Americans were proud

say

of

their preeminent pd'Sltion in the
order,

but

apprehensive

about the way their business

it

rf^emphasized

be

be

eternal

great deal to do with this"

TeTsmaher

wuld

that is

A

convinced

iU

50's similarly will
larger in the 60's; actually,:
perhaps, get smaller. The pros-i

that

of

truth,-Any

one

philosophy

19^0's,

the

of
or

1920's

of

of

poinf;is,

society tin

how?.

:

vfifh

number

Great

Probabfjr no
^far II,

event,

World

so

Americans

Depression?" To

has influenced^ our
since is an

not

shocked
as

say

the

that

thinking

it

ever

understatement.

The effects deriving out of

a

broad? general

likely in the

way very

wr°ng fith the economy
compared With the depression

every

of

we

about:

were

Socialism

in

the'

For

a

in

variety of

Social-;

reasons,

this country

not

so

lot

of

seems

third

imminent.

But

people

thought it

was

actions

and

never

the

actions

influenced

were

a

by

their-

and
of

this

others

feeling/

Naturally, therefore, if this feel-r
longer exists—at least not:
to the same degree—its

no

nearly

absence might be expected to

fluence
<

us

Much

in-'

in the sixties,

as.

with

the

fear

of

de-l

5|'s memories of the pression,

depression caufeed us to sell ourselves short. A$host anything that
was

■

ism

ing
our

pre-oceupatioii;ivith averting another
depressi|ti have been manifold. In

wrought-up
menace

tlfeGreat Depression imminent today—in fact, it seems
hauntpus as in former quite remote. Perhaps* it was

scared

even

and

one—

almost difficult—maybe a'
embarrassing—to remember'

early 50's. Though we are still on
guard, the temper of our times
has changed dramatically. " '
•"*-

the behavior
the 1960's, but

.-

Let'? start
the idea that
doesn't

the

impressions

influence

well

our

how

however, that

these three

is

little

economy thesis of the 1930's looks

today. The

new

It

the mature

provides

us

backdrop for comparison.;
It, along with the lessened fear of
depression,' will bring about a
general raising of our economic.
sights,
a

all

or

decade behind

perous

the

us.

i

a

which they are
bv seeming larger

gut

from the

over

three
pervasive
impressions mentioned could appear as,
foolish in the 1970's as the new

and tolerated \M most of

have

against

standard

scheduled every third year or so.
Other
economic problems left

what
a
socie*$*—-thinks
it
has
learned has not always proved to

went

have

how-

DeDression vardine Greai uepression yara
probably won't be the^

free society

stronger—

a

systern might work under peacetime

Attitudes

wiu

Th

sixties,

seem

Let

addi- years.

stakes There is an unmistakable
trend away from following the
leader; an unmistakable urge to

50-

the

Great

The

sack

measured

world.

may

seems

th

in

the catastro- LrtSally they^

and w'l' grow lb be

And there appears to be no domi-

cigarette brand name comes on
the market every month. Thun-

Vh

larger

ever-

depression

a

J.

H

expenencea in xne ous. ixiey wm
seem

Pr°b3bly

s

^

-

,,

;

will
we ve

(2) That Socialism is not just can never suffer another Great;
aroun<d the corner.Depression is ready to try to pre(3) That Russia is a strong- vent recessions periodically

each

It

,

doing'

in

..

statistically

Recessions,

a

a

_

collars,

trend.

as

we as

„

p J

era

world

,

h^ye

looked in the

to be necessary,
feature
pointed,

seem

round,

Wp

.

probably approximate wnat

mn

have learned:

\.e

again

dor at least

express

we

50's

-

tinental, and American Ambassa-.

identity

the

,

at

present. Women

nant

havp

economic
chafiemger -■ for
the
style there's heavyweight championship of the

less

wear

that

successful

be

ti at:

three
impressions

everyone

afford

to

New

difficult

can

have

powerful,

wl11

we

remain.

select

spL^n?Lbitf Becluse ^motely resembling

m0st of

do

Possible^tp

livp<?
Th
J
k*
f Jn.at
we as people nave conA.lves- ^ney ar^ a Km:l 01 sciously and subconscious ly

subconscious offset to the

Pr,°P°,rt.1onately

Fewer among

.

the

it was. We neeaei the 50 s, each

has

every

changed.
Persistently lising prices were
w
n 3
u3me man"
We feel that we have lost comPared with»ie depression and
Wl°Ur ow"h?™s> buy standing in the world order. The, tolerated - f some quarters
9 npe^ar vacations. think we need previously mentioned Sputniks lauded. The rfcessions that hit
whefH we
one, take
iB

'

r

thnnohinKxrinntiv

j

^

Depression Psychosis

.

cynical little

more

advertising,

the
the

every- - -This
happened,;a,nd : from haye

we

A

we wffl Hve ly^aMW:.

,

more so-

were

use

their

and

of
ot

Not

conditions.

be^een'.

level

we

pre_

buy

no

market

gre

just

in

ap-

us

attacks,

than

neighbors.

us
are

we

housed

than

run
through
run-through

our

eyes^eie wide open

Ridding Ourselves of

60's

the turn; of the decade has

do,

we

something flashy to impress

nrosoerous

nation

what,

Qf

are

wisely,

more

transnorted

Equipped

better

with

heart

40's> We think

deai

nsvchoma-

Psyonoxna

wives about cancer.
We -feel .that we are

do notttag to

of the 50's have changed

„rpat

in

us

compare with the next depressio

sb,^_An

the

on

to

act the way

say,

morg

Businessmen

about

Amercia, 1959 Style

years

of

many

economic

.

.

been
chronicled.
Not
of change from the" way we

back
chance

a

We
,

we

Many

occupied

whpr„

incredibly

turned

we

gef

really do

we

ac(

*

were

cost-plus

or

if

as

f

what

say

tn

or

Kigntiy

l

^

why

eco-

added

It's

ly£e ourselves, try to determine

ctrik-pq

cost-

brief
brief

which

i

y'

hLdteg Twf

Influence
Tb;s

50 s.-is
^incomplete:■
thing that;,

comprehending

obvious

nomic_potential, 1-has; added to

f„mLv
complex.

,^e

. Impressi(ms ^

^ y andfs®e ng/P,"
of many of tne worla s

away-decided to
something we have

achievements

eenerallv
tions

of

and boasts about their future
nnmir-

;

formerly.

heels

scientific

Great Depression.

solubility
big issues has perhaps made us
more interested in ourselves than

comeuDDdnce
comeuppance.

a

the

at

i

1959 the steel strike

the

on

numb

seem

adopted a fetalis-

J

Coming

cost-push

-

us

,

seem not so will-

&

FtaallvTn
has
Sven

some
a

of

in

ing to take it for granted that in
tne long-run our way will be the

a

^ W

^

Most

we

first

us a slight
inferiority complex. For the first

nrt„,.

anyway'

that

and

everything has givep

ld,

EZlovmenUn

realization

the

eves
eyes

our
our

these observable

to

sudden

not

are

half-Hnse
half-close

oven

or

to other problems in our economy,

depression,

a

that many ox Of course, we've had a recession But a good
life's problems cannot be solved at every fourth year or so. But most society
in the recession. In other words, changes that the
Sputnik helped ad- The threat of an atomic war People have been affected only thought their
over-all price and wage rises oc- cause,
it has had another more *s so terrifying to us as to lose slightly. In any event, ■,the-reces- in. their hear
curred despite the fact that over- profound
effect on our society, its ability .to frighten us at all. sions have been nothing like tue persuade
per

broad brush is be-

a

ing used. Obviously, not all of us
of "s

sinners among us, and ; of us can't see much harm in were so preoccupied with tire
many fewer self-styled saints.
them—this "far "at." least,'in""any spectre of another depression as to
'

wizards began to replace football the answers. More
players as the big men on campus, to the conclusion

capita grew slowly, then declined

>

.

It

own

but most

us,

the

Remember

Great Depression.

much

about

the

boat

have

we

confidence

seemed out of tune
times. Don't rock the

system

with

growing

are

piling high in

storage bins, if some facets ox our

and

more rapidly.

Paradoxically,
more

Russia

be-

pernaps

compared them with the
Depression.
So
what
if

cause we

out-

an

kidding ourselves that they case 10 years ago. The dreaded
Right and wrong are nbt so depression never happened. It
easily able to be distinguished, didn't even come close. Rising pression. But

Scientific*

ears.

We

use
are

ari'esT"College ""professors"'found
j•
£

more

position.

industrially

Other distinctions seem to have
blurred, too. Things aren't so clear
as they used to be and there's no

advances."

bill passed to raise teachers' sal-

never

attained

the

got back

late

TTnemnlovment

It

while

declining

after

until

in

after
a

sharply in 1955

Hppnratinnq

blurred

All around us, the
notwithstanding, there

to be

seems

The automobile industry
observed that consumers no longer
wanted elaborate ornamentation
and functionless chrome. Apparel
makers strove for simplicity. At
local levels it was easier to get a

19^5

sharnlv

earlv
early

also
also

through-

fairlv'level

was

plummettcd
and
and

busi-

our

rose

vearsYetindustrial

production

hittine

Prices

Oixt-4-i
w^at also.
LltiS steel strike

^

Thursday, March 17, 1960

.

US are rock-ribbed Republicans or feeling, But we think
we
see
staunch Democrats. Religious dif- other evidences of our declining

1

•

.

1PCC

chan^d character of

ness

out

4-1^

M()l IT, T,fl(j

1A

™

J S

1

ferences may have

l~.~--.4.

^

1 Old

J-

A

the

TT/n

^

IMP

M

.

.

or

fhurt.h year seemed

some

selves

the fear of Socialism to
extent caused us to sell our-1
short in

particularly
years

of

the

true

the

50's.

in

decade.

This was:

the

earlier

New

ideas

were

suspect, in part, simply because they were new: Only orthodox

ideas were encouraged
by■ the;
general climate. Our imaginations
were

By

§

constricted.
now,

we're

no

longer

.

®

con-

Volume

stantly-

191

looking

shoulders

Socialist

back

at

.

The Commercial and Financial Chronicle

,

Our Reporter on

The climate has

from

bhanges. New ideas

Survival of the Domestic
Cotton Textile Industry

expousing
sought out

are

hopefully. Imagina¬
tive thinking is encouraged.
No

this

one

can

say

exactly

the

sixties.

for

means

31

is

viewed

and

.

(1199)

our

The ' non-coniormist

inhibited

not

over

.

conjured-un

a

menace.

changed.

Number 5934

BY JOHN T.

Continued from page 15

CHIPPENDALE, JR.

of

.

The

Government

market

after

products they

export, includ-

can

in& textiles, they must look for
other customers—and the Soviets
supply literally tens of thousands are nearby, ready, and available/

Prob¬

ably, however, it means that our
society will have more new ideas
to
"chew on" than in the 50's.

'

trade for many of our raw materials.
Without foreign sources of

what

American

firms

would

suffer

India has much the

situa-

same

serious losses. This is because our tion, only of greater magnitude,
And not only might we develop
tire industry must import all of its Her
imports,
many
from
the
more
natural rubber; the paint industry United States, exceed her exports
ideas, we might also find
must import all its lac and shel- by some $800 million annually—they are bigger and bolder ideas.
lac; the pharmaceutical industry a trade deficit of some $800 milFinally,
Russia may have a
must import all its opium and Ron a year. The problem is made
large influence on us in the 60's.
ipecac; the insecticide industry more serious, however, by hetf
Of course, Russia influenced our,
must import all its rotenone; the needs for an additional $1 billion
actions in the 50's. But for the
all fixed
income securities has chases are being made by corpo-' tanning industry must import all jn
foreign exchange each year for
most part in the 50's vour drive
been enhanced by the sizable de-; rations
which
have
available °f its quebracho extract; the fur- Rie nexf fjve years jf there is
go-*
was to stay ahead of Russia mili¬
cline
which has
taken place in funds as well as individuals.
niture industry must import all its jng f0 be any increase at all in
tarily., In
the
60's
Russia
has prices of common stocks. The lesAnd the reason given for the fa^arJ and mahogany; the jewelry
^he indjan standard of living. /
promised to challenge us on the sening of the inflation psychology
being put to work in selected
the sharp rise which carried quo- issues of fixed - income
bearing
tations up more than 4%. points in.
obligations, with Treasury bills
some
instances, has reacted some- still the most favored obligations,
what and this was not unexpected In addition to the purchases of
in light of the fast
upward move-: Treasury bills, commitments are
ment which had taken place in; also being made in selected issues
these obligations. The demand for of Government notes.
These purnow

_

-

,

,

broadest economic
The

of

rate

growth

Russian economy is

carefully.. Why

shift

grounds.

has

in

the

being watched

economic

growth

in this country is what it is
for

in

this

came

great deal of study over
but will probably

a

past year,

in for considerably more in
the 60's.
;
come

Despite our long lead and seem¬
ing
invincibility
as
economic
champion

of

evidence

suggests

the

make the match

i

world,
Russia

lively

a

recent
willRus¬

one.

sian Sputniks have Tended to off¬
set

-v!

of

some

our

vaunted evidences

of

higher living standards. Other
spectacular achievements by Rus¬

I

sian scientists

to be

are

American scientists

1

to

expected.

preparing

are

in kind.

answer

also

been

opment

as

the

general

bring about

effect

is

to

raising of sights, a
feeling that what has seemed good

i

a

enough won't do,

!

that

encourages

hew

ideas.

an environment

and

more

';

,

'

bolder

'

1

.

A

pattern,, therefore,

is

estab-,

lished. If out of the 50's three
per¬
vasive
impressions / have
been

bearing

It appears as though the
on
one's investment is as-

return

suming
in

place

of

The

March

ments
ence

whole.

new.

4

a big change. A high standard
living will likely, be taken for

go

of

granted.

Persistent

inflation

and

periodic.-recessions will grow less
tolerable. The rest of t"e world
will

seem

more
important to us.
prcbably be much-less con¬
tented, smug, and stuffy than we

We'll

for

were

most

of

maybe we'll have
contented

selves

past

the
lot

a

of

two

ciety—the

more

to be
our¬

psychoses

we've

freest

But

ridding

about. -In

decade

50's.

in

in

the

the

our

made

world—
our

subconscious two forces that have
merged

viewpoint and sub¬

our

ideas.

new

and

impregnable

puts

us

of

to face

the

challenges

the 60's.
The

.

in

How strong
position this

a

our

change in the character of

society

will

The

ing

(Capital

demand

to

probably

come

slowly and almost imper¬
ceptibly. It has begun already.
When the change becomes more
the

people will
say,

"This

[This

was

tendency-. for

be

was

the

and

what

look

many

back

and

turning point.

event

the

change."
wholly right,

to
the

that

caused

They will not be
matter what day

no

event

they

choose.

All

•days and all events leave us with
impressions no one of which is

-completely decisive because each
is

the

unconscious

Demand

Likely

funds, accord¬
is not likely to

the

future

near

spite of the belief that the

will

omy

which

be

It is

Wxl xCh

start
rt

levels
boom

been

predicted at the
r
year is I1UI going to
is not going to

the

materialize
1960.

at

evident that the

nad

of

in

econ-

considered to be favor-

are

able.

operating

are

goods
that

the

oe

consumers

This

for

means

and

money
.

to be strained

going

much while these conditions
prevailing. In addition, it is

very
are

not

in Some quarters of
market that an inin capital expenditures as-is

believed

the

money

crease

being
omists

have

predicted now by econr
in Washington is going to

product

of

course

tightening
influ¬
money and credit.

on

As matters currently stand, it is
evident that many money market

specialists
the

do

forecasts

that

not

go

along

the

of

.days
one

•

•

all

and

with

tions

in

those

above

made

that

1959.

in

much

will

1960

of

a

be

were

It

corpora-

does

sharply
actually

.

not

take

decline in the business

pattern to have a sobering effect
upon the way in which corporations

are

takes

events

many

.sion

say

nothing

which

funds, to
about
borrowings
be made by these

would

concerns.

same

that

.recur

■Other

a

us

Socialism

or

times

event-can

pact—-as

which

at levels
be

considered

are

satisfactory,

along

but

not

to

boom

at

proportions, it is believed in some
quarters of the financial district
that

the

funds

demand

will

tend

there

will

be

loanable

stay

within

This

means

money

avail-

limits.

manageable
that

for

to

able for fixed-income bearing ob-

in amounts that should

ligations
not

have

ence

unfavorable

an

upon

.
the

market

influ-

one

have

with

day
day

the

days,

remote.

and
the
news.

all the events,




be obtained in

Proposed

better
can

stocks.

common

Despite the

evident
evmeru
the

of

long-term

obligations,

which

can

with ease, there is

the

among

disposition

no

of these securi-

owners

ties to get rid of them
go

in ine
in the

that quotations of these is¬
be moved up and down

means
sues

atmos-

professional
very
vtiy

action

up.

In

.

present

the

first

place,

the

these

levels, would

still

that the Treasury will-eventually
get around

to

of

program

.a

been

be

Glamor

"ad-

vance"

commercial banks, which are in
the main savings banks, are very
much interested in this "forward"
refunding idea,

=

V^UJL

O-Ll

have

helped change

one

and if it
had not been for each of them the

im¬

fin'o urmii/i not Hp
60's would not be

first
But

and

r7

♦An address by

Pennsylvania

,x

ac

as

us,

thov

1"

will

^

Hp

Mr. Bunting before the

Bankers
Association
in Philadelphia, Pa.

Annual Meeting

:

they will be.

all

its

and

branches

coffee,

tea;
the

of

textile

industry must import all of their
jute, sisal, abaca, carpet wool, and

cashmere'

items

are

imports.

counJ:

for

which

Imports

also

ac-

now,

supplies of such crucial

as

chromite,
nickel, anti¬

manganese

ore,

beryllium,

bauxite,
mony, and cobalt.
Imports provide the U. S. cotton
textile

industry with sizable

portions

of

its

extra-long

foreign exchange—
buy such items as agricultural.
metals and machinery

from the United States—are high,
And textiles are among Korea's

Producers

T

,

+u

I must say
w
last

,

year
year

wt-ip
fpvtilp

a

Kong

industry.

Kong

,

.

somewhat

was

when°^e^rai
whe

nrnrlnrprc

nnnpnrpn

rnmrniSnn

upfnrp

+hp

0r)r)0se

the increased tariff

Tariff

to

on

ex-

which

the

That tariff increase,
cidentally, was not granted.

in-

tra-long staple
Jr.
'
.i

x

-

dornPc;tip

r

cotton

x

11

o

to

sit

back

what,

You
on

and

where,

sell'in

hUy and
kets.

pick

and

and

how to
international mar-

just can't turn foreign

and off

the

are

like

a

major

of

employment for the two
million refugees who have escaped
the yoke of Chinese Communism.
No Red

China Goods

Incidentally,

on

the basis of

on-the-spot

my

of
textile industry, I
firmly believe that they have the
survey

Kong's

^

+hp

ful1 caPacity to Produce all of the
cotton 'gnimcma
tvvw" garments

they
mv.jr

shipping

are

to the United States. And on the
kas*s
thorough investigations
conducted by agencies of our Government, I caiihsay That

-

o n

seeking.

choose

But these Hong

industries

source

Hong

Tariff

foreign exchange.

is another
area
whose textile and apparel industries pose problems for our do-

pro¬

T

that I

nused
a^u™dS
pnftnn

Oppose

of

earners

Hong

personal

When

Korea

is within
perimeter.
But

course,

products,

staple

cotton.

nS

lies in
of

a

her needs for

stable percentages of mestic

?+ur

items

ford

Sino-Soviet

few

all

U. S. industry is totally dependent
upon-

capacity

the

to

and

chiefly because

Mai

which

small amount

verv

we

have

Ji0* f°und one bit of proof that

Communist textiles are being
transshipped through the Colony
*°

United States,
Japan does not have the problems
poverty existing elsewhere
in Asia, but Japan must "trade to
live" and she either trades with
the free world or succumbs to the
left wing elements within her
population and orients her econ-

faucet.

omy to the Communist Bloc. It is
just that simple.
The importance of foreign trade
Each of these countries is our
to our country's continued peace, friend.
Each is important to our
progress, and prosperity even tran- national survival, which includes

p.

Af»i»n

O0111 HI. UlK. Ull

U

Lee & Co., Inc., Milton D.
Blauner & Co., Inc., and KesselL.

(March

17)

(without

value)

par

$5

at

per

share.

in

■.

I

Corp.

Massachusetts

incorporated
June

on

6, 1952,

engaged in the manufacture and
of

glass-to-metal

seals

for

the

hermetic
and

electronics

meas-

;

convinced

am

that

President

Eisenhower's defense policies have
kept

Hermetite

and

Importance of Trade

shares
of
common
stock

125,000

Hermetite-• Corp.

immediate

urable economic gains it provides
our workers and businessmen.

& Co., Inc. are offering today

man

buy if you don't sell—
can't sell if you don't buy.

the

scends

M.

9a^

us

in

a

position

where

we

destroy any aggressor nation

„

for

$225,000
jriej-u

up

in

a

new.plant;
equip-

of

purchase

etc.; and the balance of ap-

t201S00

the

to

date

hereof

an

the

reserves

foregoing

estimate.

foregoing
the
me

.

The

.

is

neces-

company
.

.

the right to revise
estimate

proceeds
proceeus

as

of the

jn

o

the

in
in

the

6*m

the
of

use

the juugineiit
uie judgment

'„

of

~

^
Board of n;roMnre may Kp
Directors
be
^

best

to

As

interest

of

the

com-

continue

we

efforts

our

to

greatly expanded level
0f international trade, however, it
jg

not

a

our

to "sacrifice"

purpose

most

vulnerable

I said:

United

"Our

to

policy

States

seek elimination of trade barriers

remajns unchanged and the tremendous increase in Japan's ex^

Ports to the United States thus far
fn 1959 and the faV0rable outlook
the remainder of the year

for

SUggest

kardiv

is

there

a

strong

sentiment in the United States to
restrict imports from

Japan. Fur-

direct attack—as well as sub-

thermore, we shall do everything

those geographically

within reason to stem the tide of

version

are

^»«.js5sr3ws; csswrawaa
countries because of their
0f these

tionism

tion."

Pakistan, for example, is a coun-

f^r^opleTterally
themselves

from

the

a

large percentage o

national

product,

lifting
of

depths

^

,

but their need
is acute. They
order that they

for foreign exchange

must

export

in

the food,' machinery, raw
."
materials and other items they ababmaterials and other items
solutely need for every day living,
uving
may buy

,

The pakistanis like Americans,
.

if

we

,.

for

but

,

don t buy the few lines of

us

or

any

other

na¬

Then, I said this:
We

are

poverty. Their exports account for

...

pany.

countries

Tke

the

company has not made a final deeision regarding its move to a new
location,

.

achieve

fast emerging textile industries.

"

the

at

capital of

working

company.

Since

win

textile

November.

which $100,000 will be used to subversion which poverty invites.
and set

the cotton

faats certainty point up the necesf}ty f3r ?
h a yi n f frienfs

.

move

of

any United States industry. This
jg Row I explained it in Japan last

offices

The

survival

the

industry. Each of these friendships
must be nurtured, and an expandRig level of trade among us is the
answer to most of our problems,

\n th,e world at thf Pres? of a.bMj"
but the recent Russian missile

throughout the world. And trade
and plant of the company are at ls th? most sensible and sure-fire
702 Beacon St., Boston, Mass.
' way in which we can make friends
Droceeds
after Davment of
-r
S^G
aSSUrG
*
pv^^^°pCif^SAad^ Kl
fre+e world+ remains economiJ5Vma/Plv S ^nn of C?Vy
t°n.! e"ough4J^ r?'
k®. aPProx:ims/tely $53:2,^00, of sist either direct attack or the sly
industries.

electrical

.

from the 50's

various

and you

Prvm-k

if ^
llt/1 illt/LiLv3

sarily
all the impressions

import

*

bananas,

a

You can't

the

pastTre

must

trade

funds which had
going mainly into common
distant

try

refunding and this will
Of course, we must have foreign
favorable
treatment
for- trade. In the
complex economics
most of the bonds that are held 0f
today's foreign trade neither
by these institutions. The smaller we> nor any other nation can af-

sure,

stoTks°in"to/not

c^aniae, calcium nitrate, and natural
so"lul4n
30 iri<?cus"

mean

added

Losing

Stocks
To

cyanide, calcium nitrate, and natu¬

cocoa,

Korea has

forejgn trade

f^uT import aT/Tca?cium

are

pretty well reconciled to the mntinued Iiuiumg ui them since uisH"UCU holding of uicm suiuc disat

,

-prices

as

oi these bonds

owners

in^ustry must import all its natupearls, the metals industry
must lmPfr ^
tm and.chro-

These

"Advance Refunding"
Helps Market

prailmiMy

impres-

tremendous

the

considerably

are

than the current return which

behavior

of these securities.

form

wouldn't

was

.Sputnik broke into the
all

many

to

with the

depression

able in fixed income bearing obli-

gations-

sale

With the economy moving

days and all the events it

to leave

monetary unit' through
equities.
In aueution, the yields wihch are avail-

to spend their

powerful impression—as with
the

.took

•

it

the

buying ot

Government

capital spending by

some

days, events, and impressions are
infinitely more important than
others, -Sometimes

of

er

tne

further

ences

days, events, and impressions that
have gone before. Of

need to hedge against further de¬
preciation in the purchasing pow-

result in very large losses, which
they do not -want 10 take. In addition.
dition, the belief is vprv strong
the belief i<! very strnnf

durable

demand

the

posal

are not likely to be
fnrpcppuHip
foreseeable fntnrp as
future

not

is

not

is

of

_

credit

has

so

concerned.

are

fear

half

first

no

far, and there
iho

there

securi-

shortages

the

in

There

inflation

that

so

Government

for

advices,
in

the

1131
1S
phere that is

month.

Lower

common

a

the

of

sub3ided

trom

fixed-income

is that

market

about

apparent

venture

as

purchases

into

so¬

freer. We have removed from
narrowed

influ¬

no

market

ties

the raising of
probably at the end

most

will not be like the fifties
after all. Our values could under¬

pay-

in

stocks

will, be

the

60's

now

tax

with

next

money,

the

income

money

The

Treasury
of

15

the

as

outlined

importance

made

were
on

in
.in

is clear. The

con-

hedging -against
inflationary developments,
thru
price appreciation, in equities.

anv

effects

are

the

any

course

issues

greater

far

here, then the

of

cerned.

sions

the

action

f

come

formed, and if the three-impres¬
have

the

as

devel-

Governments and other fixed-in-

increase

Again

far

.

favorable

a

intend

not

to

see

an

Am"fc"0 iSdus'try "destroyed

by

no

competitioni however, and
adequate safeguards in

forej
we

haye

our

trade laws which will be used

,

Qi_p

1°
J^PP

pprtain

it if
•

,

that

nnr

this

does

nptinLl
k

k

not

nohrv

with

nro-

J? 'fjfAbroad Tut^noAo11 'giv°e
g

uucers ao oaa.
i
our markets away.

*

Now, many, I'm sure, are fully
Continued

on

page

32

V

.

iV^HH-"?irtVnif'-.-1J' w^rrwIIWMtf 'MHlEfl

wirdWfo

32

(1200)

A** •

'^fitimyv Ji.^.

The Commercial and Financial Chronicle
1f

'

•

,

.

.

need

Cotton Textile Industry

for

Thursday, March 17, 1960

.

"
•

sgffiSSCS

of

aware

the

mechanisms

able for protection
ous'
imports.
No
made

on

until

it

beyond

proven

that

the

ceed

the limits

concession
of

will

hearings

jury,

by

other

changing

concession

studies.

in

mechanism.

and

And

If

serious

the

on

ties

listen

in

basis

men

of

to

these

some

u

■

Tariff

at!§

ana

p™ea,

meaium

i*™™ J

quaiuy,

Tt

n

of

firms

dissatisfied

are

with

work for the enactment of

tion

setting

In

a

of

each

legisla-

trade policy.

new

these

instances,

initiative is theirs.

But

dium

these

administrative remedies, they can

*

the

in the

we

10

Quality

desired

for

result

a

of

It is

direct

„

purchase;
Fabrics for fashion dresses, lingerie and children's wear, includ-

ketinff

and

believe I

vohintarv

rpctraint

successful in

was

Jere<^enton

and

whiW knnw that

th

Kong

ad^ncedT
industry! I

agree

that

centlv

it

bv

nlan

the

think

re

Honff

wil!

you

good

a

thP

pom!

ta

the

forms

in

vnn

not

svmnathv^ with

Dlete

obtain

J nrhtfnie"

ins

textile

T

basis

em-

fundamental

economic

studies of the
We have set up a textile

committee which

Commerce
matters.
cotton

industry,
advisory
Secretary of

the

consults

We

export

textile

on

have

established

equalization

ment program.

And

a

pay-

have done

we

theTndustfy WG
maustry.

cate

T„

Our

Exports

...

—

salesman.

restrictions

summer

use

Foreign

requires attention."
Our reports from
tion

of

Ghana

\
the

also

new

cannot

we

.

contem-

worked

out

in

few'iflustrations'

^ are

a Iew illustrations.
Change is inevitable;

vistas
n

shows
can

would

sl™

not
manv

course, is a feature. But American

it

is

not

to go

sales

sound

back ten

order

to

procedure

The

salesman

sell

oniy

selling
be

and

there

that

the uptrend

shares

is

not

but

he

Qne

his

service.

or

the

of

mutual

securities

of

obvious

outguess,

what

the

salesman

is

that

this

a

peopie

WHy

wh0

THEY

and

mod!

^binin?

how

be

whole

0r)ened

uo

a^La^

have to
to

be

'more

new

through
A

ner-

rank

a

believe

PX

nes-

that

such

there

oroducte

ex-

penditure for textile products must
increased

Competition

consuming

housing

transnortation

^et

with

tively

solid

products

over

dividend

depression

form

has

years

stock'

bondi

u

con-

the

A

Long-Term

+,•«

+

s^r°ng and

e

1

Government

can

much

rather

is

doing what
industry. But

the
of its future

viable.

depends

the

on

than

repeat them, I want
to quote from the keynote soeech
of Mr.

Carl R. Harris,

the Presi-

stop
worrying
about
getting
a
larger share of a smaller market—
and devote

thought and energies toward building a bigger market—for

our

therein

lies

our

dent of the Southern Textile Asso-

future!

TxZ tUareMf0* itSelf*
ciation' when he opened the As" Chlrlotte TeeSxStileyCkTb ^harloUe^N V
J example. We have
te'Sn Me, socution'sast Annual leeling in m !2, ,»
toi
'
'
" C"
4

If

world

problems;

s

textile productive

ca-

MPhtynf1Sthger0nTh»g textile-produc,con,^antly and
r
.

.

ing

.

countries

have

dire

need

for

expanding hard currency markets,
These

problems

major

part,

clothed"

These

by

on

found

desire

billion

my

the

for survival.

trip to

last

businessmen, government
and just plain consumers,
that there

is

a

for American

**

.

.

tremendous

products,

ODnortnnitiec
._

To offer just a

nYV J* +."

in-

In 1929, this is what he said:

"Today as never
feeling the effects
petition
We

can

two

in

by

our

we

keen

part

easy

producing

quality.

This

matter with

highly skilled

people to

man

"Second,
means

of

of

are

com.

this

.

.

in

we

that

our

This is

must
same

raise

be

1

J- A. Hogle & Co. is today (March
17) commencing the public offer-

difficult

of

old, but

today/'To .these

ten),

Then

and

\/»

.

securities business.

who needed

«V--V;

more

contact

1

would

sit

and

what

the

have

Wife

and

up

a

some

spend their

do

or some

well

as

the

as

such

good

pius

$io,000

twenty
take

invest

to

for

hence, I'd
chances with a

years

my

managed-mutual

fund,

and

than turn that

money over to some friend who
sa
s
he knows about the market
trust

or

my

and

enc>e

own

iimited

knowledge

xhere may be a few
wjfb luck

thousand

a

who

run

think

into

the

can
a

beginner's

fortune

maj0r>ity

experi:
;

hardy souls

genius and

'egg'

nest

of

a

few

but' I
sensible

peopie win choose

a sounder plan
safeguards that will protect
,tbeir
capital from the much

with

greater risks of

loss and depreciating
purchasing power
These
people will not want to sell their

funds

the week after they have
bought them. They will not complain about the acquisition cost.
They won't compare - an investment
program
with
a
common

do

boys

stock.

They will know

not

•

bought

that

what
need.

average

(and also

that

good

are

the

see

add to it regularly

doing for -years, I'd
conference.and find out

by "asking them .questions
they want, and what they

to

wiseacres

to

well

Mr.

I'd

insurance

you
pro-

a

ratber

been

set

life

and they

are

like

and

j.en

people

with

I'd

ance>

income now, or
a
later date,

down

investment

an

an-

If 1 was Joe Blow working
job> raising a family, and had
adequate cash reserves and insurat

family income at

Husband

r\

Vincent Llpens

BALTIMORE, Md. — William C.
Vincent has opened offices at 127
West Lanvale Street to engage in
a

would

insurance

years

would I tell anyone that

I

life

funds will do during the next ten

well in the next

and also add to it regularly if they
were building for the future.

ceeds to expand its business.
p.

nor

so

it:

gum

to provide
Current Income

they should buy my program unless they intended to stick with
it through hades and high water,

for

" •

won't do

we

the

market) take $10,000

Then I would sell these programs
wouldn t sell stock, 400% profit
over the last ten years (but may"
be

sell

to

of the

fui??S

designed

Growth,

and

lifetime in boardrooms playing the

chicken

rd Tl*ct

were

Capital

what

unskiiled investor

representative funds that had
good
management
and
a
good

that

set

think

at

the

desired

fund

annuity arrangements
lay your hands upon if
it up properly. I'd hate

what they

farmers to someone else. If I were
concentrating on selling mutual
funds today Id pick out,, some

and hospital insurance policies.
The company will use the pro-

accomplished

of,tbe people".
T"1^ advice is 30 years
still Vigood'.

/^\

leave

by

SfanJ then sell, the funds. That is

Investment

and Growth, and Current Income.

r\

Insurance Co. common stock (par
$10) at a price of $170 per share,
Surety Life offers a variety of
life, annuity, accident and health,

born

standard

IT

OUrety Lite lllS. CO.
C1j~1
(jOIIim. StL Off (1
KJKJLLlLLi'
^LL

time not only rethe

T

be

manufac-

the

*

ing of 10,000 shares of Surety Life

educated

our

Southern

t

of

must find ways and

and at the

but

goods
should

the operations.

lowering

turing costs.
task

of

ways.

superior
and

before

foreign markets.

meet

"First,

few)illustrations, ,itr




i
.

tain,

-

July

on

5,1929.

an

some 22 coun-

major continents

F*nort
m

"under-

customers.
customers
offer

eluding textiles.

'

in

I talked personally to thou-

sands of

leaders
I

countered

potential

During
year,

2

potential

opportunities
tries

are

Asheville, North Carolina,

and

they

income

My point is simply this—if

selling dog food

kennels

made

are

and millions of

income

good

a

can

want

Pma-ra™

,

w

the

that

boys could do if they had an
nuity of that type to offer.

Program

with determination and imag-

custo-

program

finest

to

pvnanH

+•

their

-has
past. And I'd tell them

was

you

long-term investment programJ^t that and nothing else.
SELL

it
use

you

•

coP
f exports while at ideas on how American producers
ini? ® 1-me keepln& our domes- can increase their export sales. So
es

of

point to the record. And, in some
cases,
I might suggest a level
withdrawal plan which is one of

as

t,

professional

if

If

a

be

plus selecresearch
and

upon

mistakes

I'd

through

duick buck. A mutual fund is

a

it

remind

people every year through emotionalism, and unsound advice,

a

a

on

why

diversification,
based

the

term of

been

and

would

they use this systematic
approach to financial
planning,
they are buying insurance against

ane^no™.lcMlmP°rt restnc- textiles, because of their styling, TnatSn. Outward-looking, opti- you wouldn't go around and call
e
S?u tfxtlles» Quality, and advanced technology, mistic vigorous sales effort can, up0,I\ ?v^ry
^blcken farmer you
pynnrTlfk result in the loss! of are both wanted and saleable in without doubt, add to the sales could find and try to convince him
Z textllVfndn^vH ^ ' USt WOrld marketspotentials of the industry.
that your dog food would make
?Lt;l l industry desmes prop Qur national prosperity, safety, hls
be^s lay more
n?i }}
de,VrP
Am^lca" lx?dustnes
Offers 30-Year-OId Advice
and well.being depend upon en- y°u had good sense you wouldn t.
to
ml*
challenge is
Some may be familiar with my larging our economic base. Let's ^ou w°uld concentrate on the
micrht

do

I

want results; that
important to trust to
to chance. I'd show them

done in the

investment.

of

record

outstock

too

or

that

to keep

is
a

gamble for

Bon,

that

is

dianship

sistent and generously augmented
by capital gain distributions in
boom periods. They are a longterm investment program wrapped
UP in one Package. They are not

entertainment

travel —must

it,

conscientious

years- The £unds are a MmPara-

a
national

should
do

or

the

and

I'd sell that fund

°£ sto<*s, and bonds knows only untold thousands
customers happy

-

fund

a

gamble,

-

future

tion,

BOUGHT

too well how difficult it

them

what

understand

HAVE

doubt

will continue.

that they

luck,

they

should do what they are intended
to do
tbey are sold pr0perly
t()

it

them

offer

out

the

should

advantages

shares

-to

reason

show

market, And

•

fund

I'd

fumble

career

regardless

no

program. They want to do it professionally. They don't want to

friendship and
customers no

satisfying

a

work?

product
that

the

is

designed
for
growth.
I
would
point out that they want to make
certain
they have a successful

him-

for

for

Then

customers

radiation

build

can

saies

despite
common

upon

Very
probably
be
disappointed. This is no way to build

jn

that

relies

who

that his

of

shows,

ups

improperly

without

chart

gains

wjn

seif.

1900,
logarithmic

a

fluctuations,

or

to

capital

fund

certain

on

prices

years,

back

a rising chansixty years, despite the
and downs' in the economy,

nel

glamorized -statements

mutual

ten

but

stocks have been in

fifteen years in

or

overstress

over

500-stock

not

This

chart

a

averages of Stand¬

Poor's

back

wide

returns, exclusive of capigain distributions. Certainly

the

monthly

scale.

tal

atone

dis^verv

h

of

com-

for

&

ment

tn rPfjnnble

Droduct develonment

y other dollar

price,

current invest-

while

that

something worthfamily ten years

is out of line with

Their

^h

have

You want

possible

as

years,

man

in'research

certain

will

you

from now.-You

years

plan sensibly.

as

twenty

reality

the world's

ripvpinnrripnt

to

be

ard

no

And even where prices are diffi- THEM Any man who has develcult to 1meet,:superior n^rchandis- 0ped a clientele of investors sellJ^g can oft<endeve p ar
Y ing general market securities, new
salable quaU issues and a diversified selection

y

to

going

vAol.ume and advanced technology.

a^aiW
a

comes

want

necessary in order to make a sale
to promise an income return that

over.

nrice

"Alright, you want to
this objective, more

profits will be fabulous. It is not

restriction

takpn

say

common

less,

quo—or

our

,

I'd

some

of the

Price is one important factor—
but only one, and there is no tangible proof that "industry wide

t

<<

from now." I'd show them

cooperation

na-

indicate

to mutual funds. There is

superior quality, advanced styling,
and wider range of choice, are ad-

lucrative market which

a

doubly true when it

good-will and

f

"This is

holds

for other United States industries,
are opening all over the world,
American
products,
with
their

cottons
from a

Quoting
Service dispatch,

will such sales assist

nor

income ten

can

mi!%

Then I would sell
sense to them,

accomplish

Market
opportunities
for
the
cotton textile industry, as well as

mired the world

tor lVlUtuaLrunuS

salesman in obtaining referrals,

a

to

Con-

synthetics.

faction,

to the people.

^a's

and

that is improperly
give a customer satis-

will

such

for the fnerc/mQves 0Jn

our

product

s°ld

progress is transmitted into

Very

American

on

textiles, and

f

during the period.

sulate in Canberra reports a
growing demand there for American

a

„

administration of foreign

matters

of

program

No

trade either domes,tic or foreign—
is the means by which

strictionsA firm in GermaiW wanted cotton and rayon print cloth for cloth
Pinters. Germany has lifted its
imPort restrictions against U. S.

eM textile nrod^t^ f°r Amencan
textile products.

Hurt
,

In the

trade

a

Q

of mutual fund shares that future

prices are excessive. Some
elements of the American textile
industry have countered lower
These are new markets opened wage rates with greater efficiency,
UP by the removal of import re- lower cotton prices with greater

ThlTabound
t™les1 there abound

;v *. v>

satis-

admit

for trade

agency.
Continuing England's published

mnife

J., ",

need,
for example, to promise the buyer

ican tradition to strive for higher
standards of living, better prod-

be

Could

survival,

ing woolens, silks, cottons syn- nets, more sales—in other words,
thet*cs> etc> desired for direct progress. How then can we advo-

^ the Admimstiation have port

taken other actions. We have
barked
upon
some

in

law of nature that the ab-

Australia, too, has lifted its im-

We

that

Premise

interested

1

.

of progress produces decline

purchase and

a

for further dicussions

the

Q

oa.I6S suggestion

,

or in retaining customers. You do
not have to over promise to sell
any
worthwhile
product.
This

-

..

-—and certainly it has been Amer-

.

a

adopt

are

a

sence

discussions

our

us

but few people will
faction in the status

Textiles for soft-furnishings, inwith the Japanese
Government
cbjding cottons, synthetics (nylon,
for example Japanese cotton texdacron, etc.) for quilts, curtains,
tile manufacturers now have dibedspreads, covers, and all soft
versified their exports and have furnishings for use in manufacestablished voluntary quotas lim- ture' approximately 20,000 to 100,iting the volume of certain cate- 000 yards per fabric in all qualigories of textile exports to the ties and price ranSes desired for
United States in order to alleviate
direct purchase and agency;
the ill effects upon certain
segFabrics, 67% dacron, 33% cotments of our textile
industry
' ton for use in manufacture of
t
nprcnn^iiv
haw
uu
Hic.c
raincoats for direct purchase; and
csinnfwith thp Hnl! Knna
Textile Piece g°°ds, made of
^Ktrv tn Tv^in whv it k in w°o1' cotton.' and rayon, suitable
thmr hpct intp«rp«tc tn nHnnt
cim
^or coats> suits, dresses, and shirts
ilar
Irhankm of nrH^riv mar" for women> for direct purchase.
As

,

requests:

Administration have not been idle

Foreign Voluntary Quotas

lower

to

were

physical, political and economic—

Nylon fabrics for lingerie,
blouses, etc., for women, of me-

clause investigation
typewriter ribbon imports. If

purpose

^

aI1

we

,

ya a'

ing

escape

only

recommendations based upon

Let
,

its

Submits Recommendations

^

in-

5*5' piairt

1

exer-

this comprehensive study.-

opportuni-

*

Commission right now is conductan

if

d

^

^

A

futile

a

justify governmental actions and
policies. May I therefore submit

con-

England*

a

escape

The

nylon underwear for

women

tinuing $5,000 shipments.

public

conditions,

results

ton and

ex-

point,

'

.

■

.

observations just

presented would be
cise

•.

about it.

The review of

A firm in Thailand wanted cot-

the Tariff

has resort to the

one

clause

not

the basis of

on

and

through

doubt

the peril

point established

a

Commission

ties leported to the Department of
Commerce last year:

is

United States tariff

any

is

concession

'

•

.

..

if the industry decides
wants it increased and will do

of the following trade opportuni- something

against injuri-

v

CORNER

„

be increased sub-

can

v

sfantially

might have taken advantage

rnan

avail-

.

u

that figure

the alert American textile sales-

1

SE(^^

total marketing.

u

Continued from paye 31

^JflW ^

"It-

•

,

,

Survival of the Domestic

'

•

•

a

a

fund is

common
an

they have
stock

and

entirely different

?

Volume

191

Number

5934

.

.

The Commercial and Financial Chronicle

.

Indications of Current

(1201)

The following statistical
latest week

Business Activity

week
Latest

IRON

AMERICAN

AND

STEEL

Indicated Steel operations

INSTITUTE:

on

Previous

Month

Ago

that date,

PETROLEUM

oil

gallons

42

Crude

93.8

92.9

.Mar. 19

Gasoline

(net tons)

§2,597,000

♦2,654,000

2,674,000

2,631,000

AMERICAN

(bbfs.)

average

(bbls.)

output

(bbls.)

Distillate

fuel

oil

freight loaded

117,922,000

8,108,000

8,199,000

8,207,000

28,436,000

28,633,000

1,963,000

2,032,000

.

Mar.

11,992,000

Mar.

218,938,000

.

Mar.

29,050,000,.

U.

13,696,000

15,103,000

7,634,000
206,418,000

207,015,000

20,590,000

21,878,000

24,288,000

18,985,000

Mar.

101,554,000

108,815,000

121,521,000

80,616,000

44,084,000

45,299,000

47,673,000

(number

II
.

54,835,000

Mar

Slab

State

and

553,153

587,933

595,475

Stocks

526,006

566,123

575,265

$284,500,000

$505,600,000

$374,800,000

$372,100,000

OUTPUT

COAL

(U.

coal

Bituminous

S.

lignite

Electric

steel

Finished

Electrolytic

100

=

♦8,235,000

8,470,000

(E.

DUN

—

314,000

370,000

383,000

379,000

5

98

110

111

118

14,271,000

14,262,000

14,071,000

12,996,000

290

299

317

311

Lead

(St.

tin

Straits

MOODY'S
U.

.

PRICES

BOND

.

,

Industrials

6.196c

$66.41

$66.41

$66.41

OF

$33.83

$34.50

$40.58

$41.17

SERVE

millions

Mar.

12.000c

12.000c

12.000c

11.500c

11.800c

11.800c

11.800c

11.300c

Other

13.500c

13.500c

13.500c

11.500c

Repairs

13.000c

11.000c

Personal'

Noninstalment

13.000c

Mar.

26.000c

26.000c

26.000c

24.700c

Mar.

100.125c

100.750c

100.750c

102.000c

'

15

85.30

*''35.12

'tHih'meo

84.68

84.30

83.79

89.09

88.67

87.99

93.97

85.98 '

92.64

83.40

90.06

78.09

84.04

86.38

87.32

'•■i

84.04

79.01*

15

'

83.66

'

"

It 78.78

COTTON

In

month

81.54

88.67

83.79

89.92

Stocks

Jan.

85.98

91.77

Cotton

spindles

4.00

4.02

4.19

3.88
4.41

4.81

4.84

4.88

4.51

4.56

4.14

4.61

4.68

4.71

4.23

4.86

4.89

4.91

4.41

5.27

5.29

5.35

4.98

5.01

5.06

4.79

4.84

4.88

4.42

Group
Utilities Group

Mar.

15

4.64

4.68

4.71

372.7

370.8

375.7

388.0

PAPERBOARD

ASSOCIATION:

Percentage

of

^ar<

activity

orders

(tons)

at

OIL, PAINT AND DRUG
1949
AVERAGE=100

*?

rja1/

«

j?

ytar-

(tons)

(tons)

;?
a

Mar.

end of period

Month

ultimate

of

Total

of

Short
Other

Total

sales

sales

-

Total

purchases
sales

Other

Total

96

Number

of

441,069

489,216

474,212

Number

sales

Total

Number

of

Total

Short
Other

337,950

1,764,990

1,744,480

2,121,280

2,042,640

2,082,430

2,553,360

397,150

314,530

582,480

34,700

44,300

19

680,880

375,400

356,580

lg

237,170

1,274,898

AND

DEALERS

EXCHANGE

—

sales

Odd-lot

Number

Dollar

dealers

by

3,145,270

3,077,480

549,520

480,670

Customers'

3,788,958

2,875,600

2,716,194

4,618,848,

3,425,120

Short

■Ml

3,196,864
:

V..

•

77,348,400

36,093,881

30,000,000

90,000,000

21,000,000

railway operating income before charges

Shipments

1,760,240

1,973,226

Truck

Tractor

$'99,080,818

1,294,343

1,430,227

1,683,681

18,227

9,329

ig

1,542,716

1,276,116

1,420,898

$62,103,373

$71,116,925

$81,199,968

305,700

440,080

Feb"
Feb'

■

ACCOUNT

Short

MEMBERS

UNITED

(000's

UNITED

■'

Total sales

WHOLESALE

PRICESTNEW

LABOR—(1947,-49
All

=

SERIES

—

—

4To~080

As

848,530

734,765

Processed

-

All

•

1,110,940

777,960

570,610

740,140

1q

16,633,110

13,032,960

14.059,640

18,586,090

17,744,050

13,810,920

14,630,250

19,326,230

r eo. J.9

pound.




$1,674,500

$1,400,400

1,477,800

1,154,200

$290,718,804

$291,214,777

$285,215,969

5,311,484

4,861,597

5,274,249

$285,407,320

$286,353,180

$279,941,720

IMPORTS

AND

EXPORTS
CENSUS

—

Month

of

Jan.

DIRECT

AND

Mncludes

S.

GOVT.

—As

Total

balance

J

of

face

annual

3.378%

rate

STATUTORY
Feb.

29

amount

DEBT

(000's
that

3.334%

119.4

119.2

89.0

87.7

87.0

omitted):
may

be

outstanding

any

$295,000,000

$288,000,000

291,084,698

285,103,661

130,078

112,308

$290,718,804

time—.

$295,000,000

290,583,412
135,392

at

public debt
obligations not

gross

owned

by

$291,214,777

$285,215,969

409,671

410,357

422*.602

$290,309,132

$290,804,420

$284,793,367

4,690,877

4,195,759

3,206,639

the

90.5

105.5

107.2

2.781%

LIMITATION

119.3

119.7

°

i?
8
8

1

29

Guaranteed

and foods—Mar.

DEBT

debt

Total

°

GROSS

Outstanding—

U. S. DEPT. OF

v,ar'
Mar.
other than farm

figure

a

$1,560,300
1,129,000

funds

Computed

1

107.2

106.7

96.1

94.6

90.8

128.5

128.5

128.6

947,000 barrels of foreign crude runs. §Based on new
as
of Jan
1
1960 as against Jan. 1, 1959 basis of 147,633,670 tons.
tNumber of orders
Monthly Investment Plan. tPrime Western Zinc sold on delivered basis at centers where
one-half cent

30,816,000

OF

Feb.

of

Net

Mar.

foods

commodities

♦Revised

41,290,000

28,968,000

omitted):

General

Mar-

products

Meats
.

38,118,000

*39,208,000

30,354,000

GUARANTEED—(000*s omitted):

30~5~700

100):

commodities

Farm

39,846,000

37,994,000

___,

733,960

Commodity Group—

„

36,448,000

STATES

274~810

iq

3,805,739

7,562,749

(pounds)

(pounds)

Exports

911,410

ig

4,800,057

3,611,733

10,535,652

(Camelback)—

STATES

BUREAU

358^770

™ph'
F h'

3,135,185

8,923,924

(pounds)

Production

-m

Feb

953,625

3,899,369

.1

_1

Shipments

U.

sales

376,869

1,060,758

5,390,897

•

Rubber

ig

(SHARES):

sales

Other

OF

343,906

274,273

1,033,324

;

Tubes (Number-of)—-

dealers— Number of

sales—

3,397,711

214,847

Passenger, Motorcycle, Truck and Bus Inner:

ig

Tpph'

—-

274,810

358,770

lg

1,324,927

3,355,382

301,605

Inventory

1,675,136

$75,901,995

1,090,063

1,300,575

334,2071

Production

8,545

ig

1,098,667

1,314,809
3,376,343

—

Implement Tires (Number of)—

Inventory
21,333

8,863,090

18,018,977

(Number of)—

Shipments

$99,429,957

^

8,719,558

8,348,905

23,599,172

1,292,258

Inventories

shares
TOTAL ROUND-LOT STOCK SALES ON TH®N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
round-lot

Tires

Bus

Production

.

Fpb

sales

FOR

and

6,849,094

9,010,575

22,566,918

Shipments

1,939,608

$83,328,951

10,029,687

___.

Shipments

2,140,433

(Number of)

:

i

Inventory

.

$103,896,342

ASSOCIATION

Production

Tread

ig

(estimated)—_____

January:
and Motorcycle Tires

Inventory
Feb

charges

of

Imports

Round-lot purchases by

Total

after

MANUFACTURING

Passenger

4.014,895

.

1,564,049

sales

Other

78,905,591

43,566,271

.

income

3,383,545

value

Ropnd-lot sales by dealers—
Number of shares—Total sales

$784,161,653
644,544,329

88,445,465

—

Production

pgb*
peb'
Feb"

other sales

160

654,337,348

i

'

short sales

Customers'

Dollar

198,753

(AS¬

RRs.)— Month

AMERICAN

OF

ROADS

$845,788,860

631,350

Feb'

by dealers (customers sales)
orders—Customers' total sales

of

I

CLASS

479,097

395

84,362,913

3,959,365

829,890

Odd-lot purchases
Number

EARNINGS

579,415

122,237

January:

RUBBER

935,835

757,854

3,955,375

—*—

•

I

coaches

motor

811,438
688,806

127,928
330

—

788,367
660,109

—

trucks

633,867,856

SECURITIES

value

February:

$789,265,270

796,565

j q

£,*b 7q
Feb. 19

EXCHANGE COMMISSION
(customers' purchases)—t

50,337,407

revenues

139,270

659,434

1,007,080

ODD-LOT ACCOUNT OF ODDSPECIALISTS ON N. Y. STOCK

shares

of

98,420

-

769,910

953,688

STOCK TRANSACTIONS FOR

LOT

of

cars_.

Net

763,435

685,350

704,910

321,210

19

ph

——

51,688,432

operating expenses

525,700

Feb.

sales

$848,962,000

operating

465,700

rppU

sales

50,337,407

$881,613,000

57,504,761

Net

60,000

312,280

Fpb'

sales

Total

384,280

2,278,790
2,663,070

340,700

Feb" 19
account of members-

51,688,432

$916,555,000

31

vehicles

of

passenger

Taxes

432,080

886,215

purchases

VI.WA

2,613,450

124,400

9

round-lot transactions for

number

RAILROAD

-t~:

sales

Total

2,077,600

277.650

556,480

initiated on the floor—

sales

Total

2,043,210

19

sales

Other

2,545,270

19

purchases

Short

ASSN.—Month

FACTURERS'
Total

SOCIATION

Feb.

____.

107

54,656,4801

Dec.

at

customers

of motor

Feb.

transactions

Other

140

*111

FROM

315,717

Feb.

••

sales

*146

MANU¬

369,514

INC.—Month

initiated off the floor—

Short

863,816

17,636,000

Total

Feb. 19

-

-

_

transactions

Other

130,805

17,709,000

of

SALES

96

523,890

sales

100,734

114,880

Total

^
l<*>- J9
Feb. 19

purchases

12,275,968

consumers—

customers—Month

S.—AUTOMOBILE

U.

320,887

BERS, EXCEPT ODD-LOT
Transactions

IN

352,417

of

FOR ACCOUNT OF MEM¬
DEALERS AND SPECIALISTS
specialists in stocks in which registered

690,088

1,577,644

13,690,607

106

omitted)

(000's

FACTORY

VEHICLE

MOTOR

110.56

799,935

1,572,679

12,330,114

140

.___

91

111.48

2,847

Average=l<M>—

ultimate

to

ultimate

308,026

110.77

1947-49

December

TRANSACTIONS

ROUND-LOT

sales

307,7^)8

110.40

4,619

3,037

RE¬

SALES—FEDERAL

December

of

from

Revenue

94

Mar- 11

5,351

17,678,000

adjustment—

330,475

488,510

3,599

1,791,660

30

of Jan.

as

—

365,838

REPORTER PRICE INDEX—
—

STORE

seasonal

PLANTS

Production

11,065

4,176

ELECTRIC INSTITUTE—

Number

INDEX

active

SYSTEM

Kilowatt-hour

4.29

Mar. 15

Mar.

Group

12,564

of February:

Without

4.51

15

Railroad

8,595

11,998

734,652

January

Adjusted for seasonal variation
EDISON

4.86

Mar. 15

9,945

30

DEPARTMENT

4.48

2,330

9,970

BALES:

Jan. 30
month of January—____

Linters—Consumed

84.30

15

8,833

2,704

585,430

82.15

Mar. 15

14,271

10,243

3,792,667

OF

DEPARTMENT

—

of

as

86.38

Mar. 15

Unfilled

of

storage

82.52

Mar. 15

received

LINTERS

86.91

Mer. 15

34,029

16,590

4,816

.___

loans_

accounts

Month

$45,094

39,482

4,092

credit

credit

SERVE

$52,046

2,691

loans
_

84.94

Mar. 15

81,778

4,505,053

10,129

loans

Mar. 15

AVERAGES:

5,532,755

4,041,146

16,568

goods

payment

public

5,614,533

'

RE¬

_■

modernization

and

Consumed

88,840

credit

term

1 -.In consuming establishments as of Jan. 30

;

6,051,720

SERIES—Esti¬

_

AND

6,140,560

$51,356

FEDERAL

THE

COMMERCE—RUNNING
1

tons)

credit

consumer

Service

90.06

______

39,358

OF

intermediate

credit

consumer

Single

85.50

15

Baa

Orders

(net

Automobile

Mar.

NATIONAL

month

5

3,090

Instalment

Mar. 15

COMMODITY

of

17,970

6

Jan.:

of January 31:

.as

30.125c

13.000c

162,972

OUTSTANDING—BOARD

and

31.150c

Mar.

180,942

110,490

103,856

_

of

___

SYSTEM—REVISED
short

32.350c

Total

152,741

100,571

6,290,286

tons)—

—

end

GOVERNORS

Mar. 15

Group

Group

Industrials

$85,000

6,186,430

(net

tons)

CREDIT

33.225c

corporate^

MOODY'S

CONSUMER

tons)

(net

MINES)—Month

at

31.075c

—

Public

stock

Charge

A

„

23,400

$88,800

42,146

(net tons)

32.675c

i

Aa

,11,800

23,400

100,577
America

tons)

(net

30.650c '

'

U. S. Government Bonds

Average

(net

32.600c

Mar. 15

BOND YIELD DAILY

$49,800

12,600

OF MINES)—

Central

OF

coke

coke

8
8

Mar.

MOODY'S

$52,900

12,700

23,600

\ i

America

coke

6.196c

Mar.

Group

Utilities

Oven

6.196c

Mar. .15

Public

66,490

(net tons)

South

$66.41

Mar. 15

Railroad

and

(BUREAU

6.196c

Mar.

corporate

Average

COKE

8

AVERAGES:

DAILY

Government Bonds

S.

71,174

200,461

$53,500

IIIJ

:

_

Beehive

■

99.5%) at

(BUREAU

Mar.

.

.

at

•

January

'

January:

Mar.

.

York)

(New

of

_

Mar.

—

(primary pig.

Aluminum

of

Europe

in

at

.

83,274

144,471

COM¬

OF

SERIES—Month

Mar.

.

,

(delivered) at
Zinc (East St. Louis)

DEPT.

—

73,326

82,147

exports of Pennsylvania anthracite (net
North

;

fZinc

42,509,000

$89,800

mated

i

357,898,000

9,386,000

137,062

_I

tons)

~

Mar.
Mar

at

Louis)

301,332,000

28,486,000

35,000

of

—

•

Production

&

—

at

(tons)

_

To

QUOTATIONS):

at

York)

(New

33,955,000

33,434,000

dollars):

of

EXPORTS

Oven

at

refinery

period

NEW

To

Mar.

J.

25,458,000

74,738

of

INVENTORIES

Month
U. S.

PRICES:

M.

&

refinery

Export
Lead

end

—

To

INDUSTRIAL)

(tons

pounds)-

Total

7,890,000

-Mar.

_

copper—

Domestic

25,100,000

7,600,000

(per lb.)

PRICES

27,000,000

Mar. 12

AND

Pig iron (per gross ton)
Scrap steel (per gross ton)
METAL

37,200,000

Mar. 10

COMPOSITE

AGE

55,400,000

129,084,000

26,755,000

,

144,800,000

5
5

BRADSTREET, INC
IRON

147,800,000

Mar.
Mar.

.

AVERAGE

(COMMERCIAL

FAILURES

202,200,000

,

(in 000 kwh.)

output

70,500,000

Retail

INSTITUTE:

ELECTRIC

EDISON

at

2,000

Wholesale

202,200,000
169,900,000

INDEX—FEDERAL RESERVE

SALES

SYSTEM—1947-49

174,800,000

output all grades
of

(tons

Manufacturing

COAL

OF MINES):

(tons)

Pennsylvania anthracite (tons)
DEPARTMENT STORE

200,000,000

Mar. 10

BUREAU

and

266,200,000

239,400,000

Mar. 10

,~.

T

158,600,000

125,900,000

—_I«

29,421,000

\

(Millions

Mar. 10

-

—

(barrels)—

221,210,000

17,000

27,601,000

INSTITUTE, INC.—Month of

smelter

BUSINESS

Mar. 10

:

pounds)

MERCE

municipal

Federal

zinc

2,000

532,887

Mar. 10

_

construction

Public

stocks

ZINC

February:

ENGINEERING

construction

Private

T——

all

AMERICAN

557,607

cars)—Mar!

of

(barrels)

248,000,000

209,449,000

341,574,000

(barrels)

237,067,000

31,879,000

(barrels)—______

222,969,000
29,139,000
17,000

(barrels)

output

output

imports

Shipments
(no.

—

oil

Decrease

of cars)__

CONSTRUCTION

output

(barrels)

7,500,000

215,623,000

„

RAILROADS:

construction

S.

Ago
Year

252,125,000
oil

Refined' product ihiports (barrels)'
iill
Indicated consumption
domestic and export

2,393,000

Mar.

IIIIIIIII

Crude

NEWS-RECORD:
Total

Month
Previous

(barrels of 42 gal¬

—

crude

gasoline

Benzol

.27,461,000

2,368,000

6,980.000

.

,

13,188,000

6,591,000

pipeTines^-

at

freight received from connections

ENGINEERING

CIVIL

of that date:

INSTITUTE—Month

domestic production

Natural

7,212,920

Mar.

at

(bbls.)
(bbls.)

7,292,810

Mar.

I

AMERICAN

OF

7,318.210

Mar.

(bbls.)

at

Residual fuel oil

ASSOCIATION

7,152,810

Mar.

(bbls.)

output

Stocks at refineries, bulk terminals, in transit, in
Finished and unfinished gasoline (bbls.) at

Revenue

of

I III11 "II
---r—

.

output (bbls.)
Distillate fuel oil output

Revenue

(bbls

II_II

Kerosene

Kerosene

Total

Domestic
Mar.

to stills—daily

Residual fuel oil

PETROLEUM

lons each)

output—daily average

each)

runs

are as

Month

♦93.1

INSTITUTE:

condensate

and

either for the

of December:

ingots and castings

Crude

of quotations,

cases

are

Latest

$91.5

Equivalent to—
Steel

AMERICAN

in

or,

Ago

Mar. 19

.

production and other figures for the

cover

Dates shown in first column

Year

Week

Week

(per cent capacity)

month ended

or

tabulations

month available.

or

33

Total gross

obligations
outstanding

99.3

127.7.

Deduct—Other

freight from East St. Louis exceeds

Grand
Balance
under

face

public

debt

obli¬

subject to debt limitation

gations not

annual capacity of 148,570,970 tons
not reported since introduction of

public debt and guaranteed

total

amount

above

outstanding—,—
obligations issuable

of

authority

34

(1202)

The Commercial and Financial Chronicle

Securities
•

Abrams, Inc. (3/28)
(letter of notification) bU,000 shares of common
stock (par $1) of which 20,000 shares are being offered
by Mr. & Mrs. A. R. Abrams. Price—$5 per share. Proceeds—For working capital.
Office—362 Jones Avenue,
N. W., Atlanta, Ga.
Underwriter—E. F. Hutton & Co.,
Atlanta, Ga., and New York City.

Underwriter

Green, Ky.

'

,/

11

consist of

cents).

Price

$3.30

—

per

Co.,

ward

Aerosol Corp. of America
Feb. 5 (letter of notification)

stock

Proceeds

For

.—

(3/21)

prove

Research

Development,

A.

Co.,
of

common

Ameche-Gino Foods, Inc.
18 (letter of
notification). 99,875 shares of common
stock, class A (no par). Price—$3 per share. Proceeds

working capital. Office—Ameche's Drive-in, Loch
Boulevard & Taylor Avenue,
Towson, Md. Un¬

derwriter—Stein Bros. & Boyce,
Baltimore, Md.
ing—Expected in early April. •
'

Bowling Enterprises, Inc.

Feb. 25

Offer¬

(4/4-8)

filed 100,000 shares of common stock
(par $1),
100,000 class A purchase warrants, to be offered in
warrant with each share.

The class A

war¬

rants

give the right to purchase the stock at $7.50
per
share for the first six
months, at $8.50 per share from
the seventh to the 24th
month, and at $9 per share from
the 25thi to the 30th month.
Price—$7.50 per unit. Pro¬
the

construction

of

new

Rochester,

bowling centers.
Myron A.

N. Y.
Underwriter
Lomasney & Co., New York City.-

Proceeds

Price—$8

—

Foundation

16,667 shares of the class A
upon

the

exercise

of

Life
are

Insurance

reserved

for

Co.,

and

issuance

an

option granted an agency di¬
share (for the 250,000 shares to

rector.

Price—$4.50 per
be publicly offered).
Proceeds—For capital and surplus

of

the

13-month-old

company.

Office—Title

&

Trust

Bldg., Phoenix, Arizona. Underwriter—None.
American LancdCo.
Dec.

14 filed 300,000 shares of class A
preference stock
($15 par)-and 300,000 shares of common
stock, to be of¬
fered in units of one share of preference and one share
of common. Price—-To be
supplied by amendment. Pro¬




24,000 shares

each

—At

per

share.

filed

100,000

(3/21-25)

shares

common

•

the basis

N. Y.

of

corporate

•

the

the

the

shares

all

one

business of

held.
For

the
to

for

or

or

the

of

a

company's

substantial

more

insurance

f

other

three

interest

companies

finance

or

investments in

their

prepayment

to

or

in

or

general

of

one

business
a

additional

of

part

of

or

more

series, due

shares for

Office—1609

Texas

^..

.

,

Rolling Mills, Inc.

Price—To be supplied by amendment. Proceeds—
corporate purposes.
Office —1609' Texas

Underwriter—None.

In

purposes.

subsidi¬

addition

businesses

and

to

the

its

1975

22,500

each

(3/22-25)

sinking fund .debentures,
with eight-year warrants for the

common

shares

$1,000 of debentures;

at

the

(b)

rate

of

30

90,000 shares

(3/28-4/1)

(letter of notification) 225,000
stock (par one
cent). Price—$1

shares

of

com¬

share.

per

Pro¬

Office—19 War¬

ren

Place, Mt. Vernon, N. Y. Underwriter—First Phila¬
delphia Corp., New York, N. Y.r
• Buckeye

engaged in
further sup¬

of its

Corp.

19

ceeds—For general corporate
purposes.

for

portion of the proceeds

•'Baltimore Paint & Chemical
Corp.
22' filed (a)
$750,000 of
of

equipment.

..'•'*//■

Steel

Britton Electronics

March
Thrift

10

Pjpe

filed

Plan

common

Line

Co.

$375,000 of

for

interests in

Employees, together

the

company's
7,500 shares

with

stock which
may be acquired pursuant there¬

Office—30 Broad
St., New York City.
of National
Affairs, Inc.

• Bureau
Feb.

also apply

Jan.

6V2

necessary

Briggs Associates, Inc.
Feb. 23 (letter of
notification) 44,470 shares of common
stock (par $1). Price—$5
per share. Proceeds—To pur¬
chase additional shop and
laboratory facilities; for re¬
search and development of new
products and working
capital. "Office—No. 10 DeKalb Street, Norristown, Pa.

mon

the

Co., New York.

purchase

of

•

•

re¬

to the

&

To be supplied by
purchase of land and
thereon, and for the manufacture and in¬
—

the

general

Jan.

sub¬

outstanding long-term debt
temporary reduction of outstanding borrow¬
ings under a 6% revolving credit loan. Office—18 Irvington Street, Boston, Mass. Underwriter—W. E. Hutton

Price

Underwriter—F. P. Ristin &
Co., Philadelphia, Pa., does
expect a dealer group to be formed.

(4/11-15)

company may
the acquisition

and

stock.

Proceeds—For

Street, El Paso, Texas.
<

12th

bentures, due 1970, and 200,000 shares of common stock.
Price—To be supplied
by amendment. Proceeds—The
company anticipates that a portion will be used for ad¬
aries

subordinated

•Sept. 14 filed 226,380 shares of common
stock, to b£ of¬
fered for subscription to
stockholders of record Aug;. 31,
1959, on the basis of 49 new shares for each share then

29

common

March 1 filed $5,000,000 of subordinated
convertible de¬

or

common

v

to.

to

of

Border

chell Jr. Co., Washington, D.
C.; and Ralph B. Leonard
& Sons, Inc., of New York
City.

vances

6%

Street, El Paso, Texas. Underwriters—First Southwest
Co., Dallas, Texas, and Harold S. Stewart &
Co., El Paso,

of

Avis, Inc.

Rolling Mills, Inc.
$2,100,000 of 15-year

not

purchase of
of

filed

Texas.

Fenne-

sidiaries; for general corporate purposes; and the
maining balance will be used from time to time
formation

14

stallation
.<

Employees Corp. (3/31)
*
Feb. 8 filed 2,500,000 shares of
common stock.
Price—$2
per share. Proceeds—Together with other
funds, will be
in

are

—

amendment.

Aviation

invested

—

are to be sold by the com¬
to be sold by selling stockholders.
To be supplied by amendment. Office
3830

construction

Office—150-34

purposes.

offered, 100,000 shares

shares

:•«;

Avenue, Whitestone 57, N. Y. Underwriter—B.
kohl & Co., Inc., New
York, N. Y.

on

Of the shares

sinking fund debentures, due Oct. 1, 1974, and 210,000
shares of common stock ($2.50
par), to be offered in
units of $50 principal amount of debentures
and five

Systems, Inc. (4/5)
of notification) 150,'000 shares of com¬
Price—$1 per share. Proceeds

(letter

adjusted

as

to be voted

Border Steel

(letter of notification) 44,000 shares of common
Price—$5 per share. Proceeds—For work¬
ing capital. Office—203 N. Wabash
Ave., Chicago, 111.
Underwriter—Craig-Hallum, Inc., Minneapolis, Minn. :
12

(3/22-23)
200,000 shares of capital stock,

and 100,000

Sept.

I Arrivals, Ltd.

stock (par 25 cents).
—For general

Brooks, Inc.

15 filed

Price

stock (par $1).

Automation

31st

Kelley Ave., Cleveland 14, Ohio. Proceeds—To be used
Jor property improvements and working capital. Under¬
writer—Bache & Co., New York.
"

Jan. 29

Feb.

W.

Underwriter—A. J. Gabriel

pany

.

mon

Bobbie

Office—4

purposes.

to be

stock

common

-

150,000 shares of com¬
Price—$2 per share. Proceeds

(par 10 cents).
general corporate

24, 1960.

share.

.

:

for the proposed two-for-one stock
split
at a shareholders' meeting Feb.

.

.

,

.

Recording; Corp.
(letter of notification)

29

Feb.

(par 10
Proceeds—To discharge
indebtedness; advances for research and
development; to
buy equipment and the balance for
general corporate
purposes.
Office—Merrick Road,
Bellmore, L. I., N. Y.
Underwriter—Myron A. Lomasney & Co., New York,
per

.

Proceeds—For working capital. Office
St., N. W., Washington, D. C. Underwriter—

Street, New York 1, N. Y.
Co., Inc., New York, N. Y.

10

Industries, Inc.
Price—$3.75

.

value.

18th

—For

supplied by amendment.
Proceeds—$45,000 is to

10

.

stock

mon

Road,

be used for the
purchase of stock of Diversified Indus¬
tries Corp.; $33,000 for
repayment of indebtedness owing
to management
officials; $150,000 for the establishment
of laboratory and sales
facilities in Dallas and sales and
service facilities in Los
Angeles; $200,00,0 for research
and
development; and the balance for. working capital.
Office—22 Center St.,
Metuchen, N. J.
Underwriter—
S. D. Fuller &
Co., New York.

Feb.

face

Feb.

Proceeds—For

30 Canfield

—

Ashton, R. I. Underwriter—Lapham
Co., 40 Exchange Place, New York, N. Y.
• Appjied Electronics Corp. of N. J.
March 11 filed 200/300 shares of
class A stock. Price—

cents).

.

Beltone

com¬

&

Arcs

for expansion and for general corporate
Conn. Underwriter—Hay■
/ •

Office—Stamford,

• Barry Finance, Inc.
March 4 (letter of notification) $250,000 of bonds. Price

on

be

off notes,

pay

shares held, with rights to
April 1. Price—$4 per share. Proceeds—To
repay a current debt and for
working capital. Office—
111 Martin
Street,

To

for the account of selling stockhold¬

—919

of

$1),

are

den, Stone & Co.

plement the funds of the three subsidiaries/
Office—930
Bldg., Washington, D. C. Underwriters—G. J. Mit¬

American Industries Life Insurance Co.
Dec. 18 filed 316,667 shares of class A
common and 50,000
shares of class B
common, of which 50,000 shares of
the class A and all
(50,000) of the class B have been
to. by

for

(par

and 28,000

Tower

To increase capital and surplus.
Office—1455 Union
Ave., Memphis, Tenn. Underwriter—
Union Securities Investment
Co., also of Memphis, which
will receive a selling commission of
$1.20 per share.

subscribed

shares

-

Price—To be supplied by amendment. Proceeds—To

purposes.

Price—$4.00

(letter of notification) 74,800 shares of
(par $1) to be offered to stockholders on

new

—

American Frontier Life Insurance Co.
Nov. 30 filed
200,000 shares of capital stock.

per^ share.

7

expire

(par
shares.

Feb.

—

Price—$4

stock

for the account of the issuing com¬

None.

notification)

(par $1).

Engineering Co. (3/18)
50,000 shares of common

filed

are

ers.

B. Hunt Co., New York City.

(letter of

9

pany

(4/4-8)

stock.

Barnes

of which 22,000

real -estate.

28

stock
of

stock

•

Office

•

Feb.

Ansonia Wire & Cable Co.
Jan.

Inc.

porate purposes. Office—Arlington, Texas. Underwriter
—Rauscher, Pierce & Co., Inc., Dallas. Offering—Ex¬
pected in March.

ceeds—For

Inc.

common

•

3UU,000 shares of .common

2, Texas.

Underwriter—None.

Bowling Centers, Inc.
Dec. 29 filed $750,000 of
sinking fund debentures and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
stock. Price—$108 per unit. Proceeds—For
general-cor¬

one

10

stock

mon

Aided

units of

Service,

share.

March

subsequently reduced to 1,250,000
Price—$2.50 per share. Proceeds—For further develop¬
ment and exploration of the oil and
gas potential of the
company's Alaska properties. Office—80 Wall Street,
New York, Underwriter—C. B.
Whitaker, A. J. Zaopa &
Co., Inc., New York. Offering—Expected in March.

and

additional

general corporate purposes. Office
Cedar Grove, N. J,

five* cents),

American

Ave.,
Fieldman, 82

• Analab Instrument Corp.

company, Southern Services, Inc., Room 1600, 250 Park
Avenue, New York 17, N. Y., before 11 a.m., New York
Time, on April 7, 1960.

•

Telemail

Underwriter—Edgar

formation Meeting—Scheduled for April 4, 1960. Bids—
To be received at the office of the
company's service

Raven

acquire

Management "Corp.

iu (letter oi notification;

For

Fifth

Proceeds—For establishing airmail facilities
airports. Office—518 Felt
Bldg., Salt Lake City, Utah.

at

Co.; Lehman Brothers; The First Boston
Corp.; Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); Eastman Dillon, Union Securities & Co.; Equit¬
able Securities Corp., and Drexel & Co.
(jointly). In¬

—For

and

Dec. 8 filed 375,000 shares of

&

shares

American

per

Inc.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan

3,000,000

properties,

Bankers

(par 25 cents). Price—$1 per share. Proceeds—
working capital. Office^-1404 Main Street, Houston
Underwriter—Daggett Securities, Inc., Newark,
N. J. Offering—Expected any day.

Proceeds—

Office—85

Michael

St., New York City/Underwriter—
Gabriel Co., Inc., New York
City.

J.

•

(4/7)

Oil

share.

per

—

Office—60 E.1 42nd

March 4 filed $19,500,000 of first mortgage bonds dated
April 1, 1960 and due April 1, 1990. Proceeds—For con¬
struction, and repayment of short-term bank loans.

filed

Price—$1

American & St. Lawrence
Seaway Land Co.
Jan. 27 filed 538,000 shares of common
stock, of which
350,000 shares are to be publicly offered.
Price—$3 per:
share. Proceeds—To
pay off mortgages, develop' and im¬

Pittsburgh, Pa.

17

stock

(par 10 cents).

•

York, N. Y.

new

Jan. 25 filed 200,000 shares of common stock
(par 10
cents). Price—$5 per share. Proceeds—To purchase land,
to construct
buildings, and provide necessary equipment
and capital to engage in a
hog raising enterprise. Office
—Wiggins, Colo. Underwriter—W. Edward Tague Co.,

Sept.

Sept.

general corporate purposes.
Underwriter
Beaver St., New

Underwriter—Clayton Securities Corp., Boston, Mass.

Consolidated

land, construction, purchase of machinery and equip¬
ment, and for working capital/ Office—2325 Annapolis
Avenue, Baltimore, Md. Underwriter—P. W. Brooks &
Co., New York City.
"

Bldg., Washington, D. C. Underwriter— None.

Paterson, N. J.

(par 25

100,000 shares of common
(no par). Price—$3 per share.
Proceeds—To re¬
pay bank indebtedness, for advertising, and for working
capital.
Office — 328 Washington St., Wellesley, Mass.

Alaska

preferred, $20 per share. Proceeds—For general cor¬
including repayment of loan, purchase

of

shares

American Molded Fiberglass: Co.
(3/28-4/1)
Jan. 29 (letter of
notification) 300,000 shares of common

stock

•

the

•

Bowling

Inc.,

common

share.

•

Stanley

class A

For

shares of

Alabama Power Co.

10

61/2 %

porate purposes

(reflecting
a price of
$12' per share)./Proceeds—Principally f°r de¬
velopment of certain of its properties. Office—900 Wood¬

equipment, expansion of the business, and general cor-k
porate purposes. Office—Pottstown, Pa.
UnderwriterMyron A. Lomasney & Co. Gf New York City.

Agricultural

class B and

one

ISSUE

cumulative convertible first preferred ..stock;
(c) $750,000 of 6V4% first mortgage bonds, due
/1972, sold to New York Life Insurance Co., along with
12-year warrants granted said insurance company to
purchase 15,000 shares of the issuer s common at a price
to be specified.
Prices—For the debentures, at par; for

March 4 filed 103,400 shares of class A and
10,340 shares
class B stock. The company proposes to offer said
class A and B stock for
subscription by holders of out¬
standing class B stock, at $132 per unit, each unit to

;

filed 250,000

of

REVISED

and

of

• Aero Industries, Inc.
March

acquisition and 'development. Of¬
Street, New York City. Underwriter—

siock

Securities

Crescent

—

property
53rd

E.

ADDITION S

PREVIOUS

ITEMS

•

Hemphill, Noyes & Co. Offering—Indefinitely delayed.
American Metropolitan Investment Co.
<■
'

Corp.
Jan. 21 (letter of notification) 295,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—To purchase merchandise for payment of notes and
accounts
payable, and for advertising and other ex¬
penses. | Office—410
Studekurrr Bldg., Nashville, Tenn.

Thursday, March 17, 1960

.

SINCE

fice—49

Wholesale

Acme

in

ceeds—For

25

.

^ INDICATES

Now

(A. R.)

Feb

.

(letter
stock

Price—$9,50
s

of notification) 1,80,0 shares of
class A
(no par) to be offered to
employees only.

per

share.

Froceeds—To

obligations and expenses. Office—1231
Washington, D. C. Underwriter—None.

meet

24th

current

St.

N.

W.,

'

•

Burned & Co. (4/4-8)
Feb. 15 filed 200,000 shares of
common stock.
Price—$3
per share.
Proceeds—To repay bank
loan; • for manu¬
facture of magnetic
amplifiers; for establishment of a
new
crystal filter division; for the
purchase of new
automatic winding and
testing and production equip¬
ment; and for working capital. Office—10
Pelham Park¬
way,
Pelham Manor, N. Y.
Underwriter
Milton D.
Blauner & Co., New York.
—

• C. W. S. Waveguide Corp.
9 (letter of
notification)

March
mon

stock

ceeds—For

300,000 shares of com¬
one cent).
Priee—$1 per share. Pro¬
general corporate purposes.
Office—301 W.

(par

Continued

on

page

36

Volume

191

Number

5934

ISSUE

NEW

.

.

The Commercial and Financial Chronicle

.

V, American Molded Fiberglass Co.Common

CALENDAR

V

•"

18

(Friday)

Engineering

Barnes

(Hayden,

Co

Stone

California-Pacific

...Common
Co.)

&

50,000

(Eastman

shares
V

March 21

Edgcomb

Class A

(Amos Treat & Co.,

Dillon,

Co

Steel

(Kidder,

inc.) $1,050,000

Peabody

(Shearson, Hammill & Co.

Aerosol

Corp.

of America

Common

t-..

Arcs

Forest

Industries, Inc
(Myron

Caldata, Inc.

Common

Lomasney

A.

& Co.)

$187,500

•

•

?

Great

^:

Loeb,

M.

Southwest

Airlines,

Capital

Brothers

(Lehman

Usage

Computer

Sloss

(Marron,

Smith,

Barney

&

Co.,

L.
Inc.

Luskin & Jenrette,

Albany

Corp.)

Howe

-;

Inland

Container

(Syndication

Investors

Corp.)

Inland

$220,000

Credit

-.Common

Frederick, Inc.__
(A.

Frederick

J.

Co.,

&

Missile

$300,000

Inc.)

.Common

Corp.

stockholders—underwritten by Hirsch
Higginson Corp.) 130,000 shares

to

(Offering

and

Kratter

Lee

Steel

Higginson

Corp), 130,000

Hirsch
shares

&

.

Seaboard Plywood & Lumber
(Peter

Transworld

Co. and Mitchum,
200,000 shares

&

Jone6

&

March 29

Templeton)

Common

Industries, Inc

Mayfair

(Glenn Arthur Co.,

Inc.)

Mid-America

Pipeline

Stearns &

(Bear,

Co.

San

—Debentures

Co-..-;

(White,

(Mortimer B. Burnside & Co., Inc.) $180,000

Mobilife

(Frank Karasik

Co.,

&

Inc.)

The

Co.

First

Co.

(Wednesday),,

Common

~

E.

stockholders—underwritten by C.

(Offering to

Stoltz

(Bids

U.

S.

Devices,

Taylor

442,700 shares

St.

Universal Transistor Products Corp
Common
(Michael G. Kletz & Co., Inc. and Amos Treat & Co., Inc.)

April

..

(Robert

Manufacturing,

Common

Inc

(Stroud & Co., Inc.) $300,000

Whitmoyer

&

Co.)

(Hallowell,

& Co.)

&

Factors

Sulzberger, Jenks, Kirkland & Co.)

American

March

22

Baltimore

(Tuesday)

Paint
(P.

Baltimore Paint & Chemical
(P.

Brooks

W.

(Edgar

Bonds

Corp

(P.

Bobbie

Brooks

W.

Brooks,

Debentures

Circuit

Sloss

&

Inc.)

Co.,

Dworman

$585,000

Alstyne,

Van

Co.. and

&

Hill's

Noel

&

$3,000,000

Co.)

Electronics
•-

•\

(Stanley Heller

& Co.)

(Allen

Yuba

Co.;

&

Consolidated
(Blyth

•

March 23

Collins
(Kidder,
_

T

Co.,

•-

Automation

Curtis)

B.

&

Carolina
.

La

25

Corp

EST)

Common

(Bids

to

be

Crosse

Cooler

(Shearson,

Universal-Cyclops Steel Corp
(A.

G.

Becker

March 28

(A.

R.)

&

Co.,

Inc.)

100,000 shares

:1
200,000




(E.

Alabama

F.., Hutton

Power

..Common

to

v

»'

.

-

-

•

"r.

First

Co

invited)

Bonds

T

$30,000,000

Bonds

Co.
J1 .,$.m.,EJSI*)t $1^,500,000

Inc
Boston

•" '-J

.

.

..

$15,000,000

invited)

Common
shares

1,400,000

(Monday)

May 9

(Bids

12

noon

Bonds

EST)

$12,000,000

(Tuesday)
Bonds

California Electric Power Co
9

PST)

a.m.

$12,000,000

Goelet Corp.
(Ross,

Debentures

Lyon &

Inc. and Globus,

Co.,

Inc.)

shares

to

stockholders)

$700,000

Goelet Corp.
(Ross,

Goelet

Lyon

Common
70,000 shares

and Globus, Inc.)

Co., Inc.

&

Warrants

Corp.

(Ross,

Lyon

Wisconsin

&

Inc.

Co.,

(Bids

be

to

Globus,

and

Inc.)

35,000

Debentures

Co

Telephone

invited)

$20,000,000

(Tuesday)

Bonds

Jersey Central Power & Light Co
June 2

11:00

N.

a.m.

Y.

time)

$7,000,000

(Thursday)

July

July 7

to

be invited)

Bonds

Valley Authority
to be

invited)

$50,000,000

(Thursday)
Preferred

Gulf Power Co
(Bids to be invited)

July
New

Bonds

$40,000,000

(Friday)

1

Tennessee

19

$5,000,000

|

Bonds
to

be

invited)

$5,000,000

(Tuesday)

Jersey Power & Light Co
to

September 13

be invited)

Bonds

$6,000,000

(Tuesday)

Virginia Electric & Power Co
November 3

Common

...

Corp.^-offering
333,213

Bonds
EST)

Gulf Power Co

$6,495,000

(Friday)

Xerox,

(The

and

Co
a.m.

be

(Bids

April 8
Haloid

&-Co.).$300,000

and Bache & Co.)

(Thursday)
(Bids

shares

.iiCommon

Inc

•
•

be

Co.
Bhares

Ohio

325,000

System, Inc

(Bids

(Bids

April ,7

(Monday)

Abrams,

to

Common

...

The

Co.;

Co.)

(Thursday)

Equip. Trust Ctfs.

:

invited)

Edison

(Bids

Common

Co.

11

(Bids

Preference

...

100,000 shares

Hammill & Co.)

May 5

$25,000,000

(Wednesday)

Commonwealth

&
&

Edison

(Bids

—......Capital

Plywood, Inc

Bonds

Jones & Co.
shares

Northern Pacific RR.__

April 6

(Peter Morgan & Co.)

$150,000

Co

120,000

100,000 shares

Corp...

Weld

(Bids

Common

...

D.

shares

Inc

a.m.

Edward

Common

Southern Electric Generating Co

Fennekohl & Co., Inc.)

11

Common

Stone & Webster

and

Corp.) 800,000 shares

(Tuesday)

April 26

(Bids

-

Carolina Power & Light

(Riter & Co.;

(Friday)

Pacific

.

$300,000

100,000

Co.)

Co.

&

Sanders

May 24

Common
Co.)

Hunt

(Hornblower. & Weeks) 210,000 shares "

March

Common

and Netherlands
$600,000

Corp

Systems,

Liberty Loan

$12,000,000

Co.______

Screw

(White,

shares

Common

(Bids

——^.Common

Common

Inc.)

Bonds

Webster

&

$35,000,000

Co

Financial

Inc.

Co.,

&

(Tuesday)
(B.

and White, Weld & Co.)

&

April 5

Debentures

—

Jackson

Webber,

Winston

(Shields

Co.)

-

$3,000,000

100,000

Co.)

&

Stone

and

Corp.)

(Monday)

(Bids

Corp.

$6,000,000

Inc.)

Co

Peabody & Co.

Standard

Sterilon

.

& Co.)

Co.

&

Weld

Panel

$1,000,000

Common

(Edgar

(Wednesday)

Radio

(Pajne,

.

&

Inc.)

Common

Seneca Gas & Oil

Debentures

Inc

Industries, Inc

Remco
j

Industries,

Pacific

May 10

Common

Securities,

Common

Stearns & Co. and Sutro Bros. &
400,000 shares
• •••*

Bear,

A.

$750,000

Phillips Developments, Inc.

$600,000

Keystone Electronics Co., Inc
(J.

...Common

Corp..

Co.)

&

& Co., Inc. and Sulco

Peabody

Bonds

$20,000,000

Pennsylvania Electric Co

Supermarkets, Inc....

Hi-Press Air Conditioning Corp. of America—Com.
(Plymouth Securities Corp.) $600,000
Pentron

Common

Corp

(Kidder,

Common
650,000 shares

EST)

noon

Securities

Columbia Gas

$1,500,000

Co.)

Blauner

(Charles Plohn

204.000 shares

warrants

Corp.

>,

.

—Debentures

Highway Trailer Industries, Inc

(White,

(Hayden, Stone & Co.) 106,000 shares

Great Lakes Bowling Corp.....— — — ..Common
(Straus, Blosser & McDowell) 120,000 shares

(Allen

Foil

.Common

12

Weld

(White,

Warrants

Inc...

100,000

Co.)

Service, Inc

Securities,

shares

200,000

Co.)

Common
shares

Inc

Club,

Capital

&

&

(G. Everett Parks

Drug Co.__
(Marron,

Captains

Co.)

&

'

100,000

Co.)

Enterprises,

D.

Capital

—

Weld

(Bids

Hunt

shares

(Frank Karasik & Co., Inc.) $450,000

Common

&

$750,000

...Common
110,000

v

Common

(Milton

Inc

(Bache

•Commerce

$300,000

Co

&

$750,000

Co.)

&

Burnell

$750,000

Baltimore Paint & Chemical Corp

Co.)

B.

Inc
Inc.)

Puget Sound Power & Light Co

$300,000

Inc.)

Enterprises, Inc

American Telemail

$1,800,000

Co.)

&

Preferred

Corp

Brooks & Co.)

Securities,

Lomasney

A.

Inc.)

Co.,

Common

Middle South Utilities, Inc
(Bids to be invited)

Common

City

Lomasney

Bowling

(Myron

Chemical

&

W.

A.

(Myron

&

(Wednesday)

April 20

Union

Co., Inc

Kirsch

American Bowling

$500,000

Street

Corp

Components,

(Monday)

April 4

$510,000

and

and C. E. Unterberg, Towbin Co.)
201,200-270,000 shares

-

$497,250

Corp
M.

Inc.

Co.,

(Lee Higginson Corp.

United

Hamilton,

Godfrey,

,

.Common

Malkan

Metropolitan

...Debentures

Whitmoyer Laboratories, Inc
(Hallowell,

Leasing
(T.

..Common

Kirkland

Jenks,

Sulzberger,

Sutton

and

First

and

Co.

shares

125,000

Inc

Laboratories,

Securities

(Jacey

Common

Western Utilities Corp
Witter

Pacemaker Boat Trailer

|

t

$25,000,000

Transcontinental Gas Pipe Line Corp

306,787 shares

Inc.)

Co.,

Co..

&

Co.)

Corp.

(Arnold

April 25
&

Magnus

Debentures
&

(Monday)

Inc.)

Common
Ferman

L.

Bonds

CST) $15,000,000

Securities

Union

Dillon,

18

Common

Inc

.

Corp.;

$10,000,000

Co.)

EST)

p.m.

a.m.

Securities

(Friday)

Goddard,

$300,000

(Dean

Ralph B. Leonard & Sons,
$5,000,000

Regis Paper Co

April 1

(Myron A. Lomasney) $600,000

Boston

First
*

Transcontinental Gas Pipe Line Corp

(White, Weld & Co. and A. G. Becker & Co.)

Common

Tenax, Inc

The

Snob"

Plywood Corp

(Eastman

Common

and

Co.

Common

Inc.

(Offering to stockholders—underwritten by C. E.
Stoltz & Co.) $537,788.75
"

Waters

Jr.

3:45

10:30

(White,

(Thursday)

(G. J. Mitchell

Co.;

(Wednesday)

Microdot Inc.

Inc.

Capital

Aviation Employees Corp

$154,962.50

CO.)

&

March 31

&

Goldmsn.

(Darius,

„

Corp.

(White, Weld & Co.)

$600,000

Inc

shares

Iowa-Illinois Gas & Electric Co.

(Bids

Tayco Developments,

296,460

Co.)

Common

Rhoades

Loeb,

Inc.

Notes

& Hickman,
Lincoln) $13,000,000

Bernet

of

Capital
&

shares

75,000

Co

Schneider,

Trust

Hickman,

&

$40,000,000

Securities

(Bids

Mills

Common
Bernet

Lincoln)

of

invited I

Union

shares

728,531

Co

Schneider,

Co J

Systron-Donner

—Common

Electronics, Inc.-...;

$5,000,000

Common
Hogle & Co.)

A.

Investment
&

March 30

97,229 shares

s

Sunair

and

Co.)

(Offering to stockholders—underwritten by Allen &

J.

and

Trust

First

Weld

(White,

Common

Public Service Co. of New Mexico

M.

Harn

Debentures

and J. A. Hogle & Co.)

Co.;

&

The

Southwestern

$1,000,000

$50,000,000

EST)

a.m.

Investment

Weld

and

Common

Corp.
(Plymouth Bond & Share Corp.)

11

Weld..& Co.

Southwestern

...Common

Missile Components Corp

Bonds

Diego Imperial Corp

(White,

$20,500,000

White, Weld & Co.)

and

Bonds
$20,000,000

EST)

Imperial Corp

(White, Weld & Co.

1,435,000 shares

and White, Weld & Co.)

& Co.

Stearns

San Diego

-Common

Mid-America Pipeline Co
(Bear,

(Bids

400,000 shares

Peabody & Co.)

Dillon,

April 13

a.m.

be

to

Lehman Brothers:

Common

Light Co.

......Common
300,000 shares

Telephone & Telegraph

$279,664

Stock

11:30

Common

shares

West Penn Electric Co
(Carl

Niagara Mohawk Power Co

—Common

Meyer (Fred), Inc
(Kidder,

(Bids

$300,000

350,000

Debentures

(Eastman

(Tuesday)

Louisiana Power &

Common

Electronics, Inc..

States

(Blyth & Co., Inc.) 256,930 shares

(Emanuel Deetjen & Co.) 300,000 shares

Megadyne

Common

Bank of California

Co.)

&

Standard Motor Products, Inc
>

Corp..

(Michael Fieldman)

Common

...

Peabody

Equipment

Common

$450,000

Corp

(Bids

Debentures

Corp

Inc

Co.)

&

Co.

30,000 shares

& Co.)

Morgan

Systems,

(Tuesday)

12

Mountain

$300,000

Co.)

&

Debentures
$250,000

Engineering Corp

Industries

April

'

$643,500

& Lumber Corp

(Peter Morgan

-

.

shares

37,500

& Co.)

(A. T. Brod & Co.)

Common

Seaboard Plywood

Co.

116,000 shares

Co.)

&

Wells

Common
of Newark)

Corp.

Capital

Peabody

Corp

(Kidder,

by

120,000 shares

...Common

Brod

(Shields

shares

190,000

Inc
Co.

Common

Lomasney

T.

Tool Research &

Class A

.•

Securities

EST)

a.m.

Inc..

A.

(A.

175,000 shares

Co.)

Hammill &

...Debentures

11:30

Electronic

(Mortimer B. Burnside & Co., Inc.) $1,031,250

Co

(Kidder,

Macco

•Nu-Era

-•

Preferred

st.nrkhnllprs—underwritten

t,n
and

Latrobe

Co.

Lee

Corp.

_.(Offering

&

Teletray

Common

Corp..

Electronics,
(Pleasant

Kratter

(Myron

$100,000

Corp

(Shearson,

&

Circuits,

Common

(Lazard Freres & Co.)

Jones

Gas Co

575,000 shares

(Hilton Securities, Inc.)

-..-Participations

$600,000

Circuits, Inc

•

$235,000

Four Acre Motel Associates-

Co.)

&

(Myron A. Lomasney & Co.)

Precision

Corp

Common

j,

Lomasney

A.

(Hornblower & Weeks)

Plastics & Chemical Companies, Inc...Com.

B.

Gourd;

&

Southwest

Co.) $5,000,000

&

(John J.), Inc

Precision

shares

$11,500,000

C<f.)

(Glore, Forgan & Co.)

Common
Roosevelt

Inc.;

Donaldson,

First

Great

shares

909,659

Co.)

Co., Inc.

&

Schwinn & Co.;
and

...Common

Inc

and

&

shares

^..Debentures
Hutton

E.

(Bids

Debentures

Forgan

Common

$825,000

20,000

—■

Fuel

Common
200,000

Corp

(Glore,

National

Nesbitt

$300,000

Co.)

&

Co.)

&

Hutton

(Myron

Common

Corp......

Rhoades

& Co.)

——

Figurette, Ltd.
Meyer & Fox)

Ltd

Club

Instrument

(Carl

Inc.

......Common

(Jerome Robbins & Co.)

General

Common.
Inc.)

Country

..

$375,000

—_

(Robert-Edelstein Co.,

Hills

E.

(W.

shares

150,000

(Clayton Securities Corp.) $300,000

Avis,

shares

Frank,

Lomasney

Common
(W.

Common

and Stern,

„

shares

Schmidt, Roberts & Parke)

Inc.—'——-

Industries,

87,307

A.

Avis, Inc.

Common
Co.)

&

...

and

& Co.

150,000

Eldon

(Monday)

Co.__

Securities

(Monday)

35

Industries/Inc.(Myron

$225,000

Corp.)

Utilities

Union

Aero

.....Common

Corp

Philadelphia

(First

South Bay Industries, Inc

.

Electronics

April 11

" "

"(MichaekFielamari) $300,000

Britton

r:

March

(1203)

Bonds

to be invited) $25,000,000

(Thursday)

Bonds

Georgia Power Co
(Bids to

be

invited)

$13,000,000

7

36

(1204)

The Commercial and Financial Chronicle

Continued from page 34
Hoffman
Dowd &
•

15

(letter of notification)

75,000 shares of

common

(par five cents). Price—$2.50 per share. Proceeds
—To repay bank loans, for research and development,

and for working capital.

Place. Los Angeles, Calif.
stein
•

Office—11431 Joanne

filed

shares to be

87,307 shares

holder,
from

(3/28-4/1)

of common

sold, 40,000 will be offered for the account
the remaining 47,307 are presently
shares and will be sold for the holders

March 10
shares

be

to

are

stock of

common

offered

in

on

the

plied by amendment.

of

one

to

expire

the basis

additional share for each share held, with rights

14

days

after

offering date. Proceeds — To
broaden equity
base. Office — Washington National
Airport, Washington 1, D. C. Underwriters — Lehman
Brothers and Smith, Barney &
Co., New York, N. Y.
Captains Club,

Inc.

(4/4-8)

share.

notes

ital.

Proceeds—For retirement

Price—$2

of

$52,860 of 6%
the balance for operating funds and working
Office—381 Fifth Avenue, New York City. Un¬

derwriters—G.

Everett

Parks

&

Co., Inc., and Sulco
Securities, Inc., both of 52 Broadway, New York City.
Carolina Pacific

Plywood, Inc., Medford, Ore.

(3/25)
Feb.

29

filed

1,00,000 shares

of

capital

stock

(no

par).

Price—To be supplied by amendment. Proceeds—To in¬
crease the company's
working capital and to aid in fi¬

nancing log inventories at peak periods. Underwriter—
Peter Morgan &
Co., New York.
Carolina

Power

&

Light Co.

bank loans of $18,500,000 used in connection with the

com¬

Underwriter—To

be determined

by competitive bidding.

Probable bidders: Halsey, Stu¬
art & Co.
Inc.; Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Smith Inc. (jointly); W. C.
Langley & Co. and The First Boston Corp. (jointly);

Kuhn, Loeb & Co. and Equitable Securities Corp. (joint¬
ly) ; Lehman Brothers; Blyth & Co., Inc. Bids—Expected
to be received on April 5 at 11:00 a.m.
Information
Meeting—Scheduled for April 1 at 11:00 a.m.

Carolina Telephone & Telegraph Co.
Feb.

19 filed

176,319 shares of

common capital stock, to
subscription by stockholders of record
March 15, 1960, in the ratio of one new share for each
10
shares then held; rights expire April 7. The
company is
also seeking registration of an additional
20,000 shares

be

offered

of its

for

common

capital stock to be offered under an Em¬
ployee Stock Plan. Price—$20 per share for rights of¬
fering. Proceeds—To reduce short-term bank notes. Un¬
derwriter—None.

Central Cooperatives, Inc.
Feb. 17 filed

$1,500,000 of 15-year 5%% series A deben¬
bonds, $500,000 of 10-year 5% series A debenture
bonds, and 10,000 shares of 4% cumulative preferred

.

Price—For

debenture

bonds,

100% of principal
amount; $25 per preferred share. Proceeds—To be added
to the cooperatives
general fund and the major portion

thereof

will

be

applied

to

the

construction

of

a

new

warehouse and central office
the proceeds will be

building; and a portion of
applied to retirement of maturing
promissory notes and for working capital. Office—1901
Winter St., Superior, Wis. Underwriter—None.

Century Properties
Jan. 25 filed 150,000 shares of
be supplied by amendment.

common

stock.

Price—To

Proceeds—For repayment of

unsecured

bank

loans; for payment of the balance

of

a

down payment on the
purchase price of property in Ven¬
tura, Calif.; to pay the balance of construction costs on
a
building in Torrance, Calif, and for
working capital.
Office—1738 S. La Cienga
Boulevard, Los Angeles, Calif.
Underwriter—Daniel Reeves & Co.,
Beverly Hills, Calif.

Certified Credit & Thrift
Corp.
26 filed 250,000 shares of
class A stock ($10
par)
and 250,000 shares of class B stock
(20c par), to be
offered in units of one share of each
class of stock. Price
Jan.

—$20.20

per

unit.

Proceeds—To pay mortgages. Office

—Columbus, Ohio.
rities

Jan.

Secu¬

Corp., Columbus.

Charlotte Motor
fered

Underwriter—Commonwealth

21
to

Speedway, Inc.

9

stock, to be of¬
stockholders of record Jan. 1 at the
shares for each three shares then

Varick

new

held.

Price—$2 per share, initially; after 15 days from the of¬
fering, date, the underwriter will offer unsubscribed
shares to purchasing stockholders for an additional
10




/

be

reserve

used

the acquisition of
properties, $300,000
development expense, and the balance
for working capital and other
corporate purposes. Office.
a

for

for

Lincoln Ave., Little
Huntley Corp.

The

Consolidated

Water

Rock, Ark.

Underwriter—

Co.

Dec. 30

(letter of notification) 24,900 shares of class A
common
stock (par $10).
Price—$12 per share. Pro¬
ceeds— To pay in part bank loans.
Office
327 S.
La Salle Street, Chicago, 111.
Underwriters—Milwaukee
Co., Milwaukee, Wis. and Indianapolis Bond* & Share

common

stock

•

Price—To be sup¬

one

general

11 filed 260,000 shares of
common stock.
PriceTo be supplied by amendment.
Proceeds—To retire out¬

standing bank loans, for expansion and
development of
products, and for working capital. Office — 715
Hamilton St., Geneva, 111.
Underwriter—Old Colony In¬
new

Un¬

vestment

f

purposes.

Dec.

Office—121

Service

filed $11,895,000

11

Employees

Thrift

Plan,

together

with

com¬

vices.

275,000

•

Collins Radio Co.

(3/23)
^
$12,000,000 of convertible subordinated
debentures, due 1980. Price—To be supplied by amend¬
Feb.

17

Feb.

Combined

Electronics

Inc.

filed

30

800,000 shares of common stock (par $1).
Price—$2.50 per share. Proceeds—For general corporate
purposes, inclding expansion, new product
development,
and working capital. Office—135 S. La
Salle Street, Chi¬
cago,
111.
Underwriter—David Johnson & Associates,

Inc., Indianapolis, Ind.,
ing—Expected shortly.
•

on

a

"best efforts" basis. Offer¬

Commerce Drug Co.

(3/22-25)
90,000 shares of common stock (par 50c).
Price—$6.50 per share. Proceeds—To selling stockhold¬
ers.
Office—505 Court St.,
Brooklyn, N. Y. Underwriter
—Marron, Sloss & Co., Inc., New York City.
30

filed

29

47th
B.

proceeds

will

be

added

to

Distributing Corp.

(letter of notification) 75,000 shares of class A
stock (par 10 cents).
Price—$4 per share. Pro¬
general corporate

purposes.

Office—315

W.

Street, New York, N. Y. Underwriter—Mortimer
& Co., Inc., New
York, N. Y. Offering-

Burnside

Expected sometime in April.
Crusader Oil & Gas
Corp., Pass Christian, Miss.'
May 26 filed 1,500,000 shares of common
stock, of which
641,613 shares will be offered on a one-for-one basis to

—

City.

the

of

Offering—Expected in late March.

Record

ceeds—For

filed

Proceeds
For general corporate
purposes.
Of¬
fice—Cedar. Rapids, Iowa.
Underwriters—Kidder, Peabody & Co. and White, Weld & Co., both of New York

Cosnat

common

Bannock

Nov.

balance

of New York.

(letter of notification) 300,000 shares of pre¬
ferred (no par), seven cents per share dividend
paying
after March 1,
1962, non-cumulative, non-voting stock.
Price—$1 per share. Proceeds—To purchase land and
for development and
working capital. Office—3395 S.

Oct.

The

19

Street, Englewood, Colo. Underwriter—Diver¬
sified Securities, Inc.,
Englewood, Colo.

loans;

—

Colanco, Inc.
Jan.

Co., Inc.
165,000 shares of common stock (par
$3).
Proceeds—To repay $80,000 of bank

working capital. Office
10 Stepar Place,
Huntington
Station, N. Y. Underwriters—Milton D. Blauner & Co.,
Inc., David Finkle & Co. and Gartman, Rose &
Feuer, all

shares which may be acquired
pursuant there¬
Office—60 Wall Street, New York.

common

to.

par.

Coast and in the Chicago
areas; and $50,000 to further
development of delay lines, filters and microwave de¬

Co.

of Participations in the

Electronics

filed

$50,000 to replace working capital
expended for equip¬
ment and
machinery; $50,000 to increase sales efforts,
including the organization of sales offices on the West

ington, D. C.
March

23

Price—At

&

if Cities

Co., Stoneham, Mass.

Control

75,000 shares of class A
cent).
Price—$4 per share.

corporate

Continental Electric Co.

Feb.

new
machines; for the initial
foil plant; and for working cap-

Inc.

(par

Corp., Indianapolis, Ind.

Street, New York, N. Y. Underwriter—Lloyd,
Co., 2605 Connecticut Avenue, N. W., Wash¬

Miller

stockholders.

The remaining 858,387 shares will be of¬
publicly by the underwriter on a "best efforts"
basis. Price—To be supplied
by amendment. Proceeds—

fered

For repayment of notes and for
working
writer—To be supplied by amendment.

if (Robert K.)
March 14 filed
of class

Cutter

B

capital.

Under¬

Cutter Co.

8,0,910 shares of class A
stock.

common

Laboratories,

and

3,280 shares

According to the prospectus,

California company, in May 1960

a

will

be merged with and into
Robert K. Cutter
Co., a
Delaware company, and the name of
which
will be
changed to Cutter Laboratories, Inc.
Under the merger
agreement, the latter will assume the Cutter Labora¬
tories Stock Purchase Plan and
Selected Employees'
Stock Option
Plan, which will then relate to shares of

the class A and class B

common

stocks of Cutter Labora¬

Commerce Oil Refining
Corp.
Dec. 16, 1957 filed $25,000,000 of first

sought to be registered. Office—Fourth
and Parker
Sts., Berkeley, Calif.
Deluxe Aluminum
Products, Inc.

offered in units as follows:
$1,000 of bonds and 48 shares
of stock and $100 of debentures and
nine shares of stock.
Price—To be supplied by amendment.
Proceeds — To
construct refinery. Underwriter—Lehman

000 shares of

tories, Inc.,

mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 and
3,000,000 shares of common stock to be

Brothers, New

York.

Offering—Indefinite.

if Commonwealth

Edison Co.
(4/6)
$30,000,000 of series U first mortgage
bonds, dated March 1, 1960 and due March 1, 1990. Pro¬
ceeds— To be added to
working capital for ultimate
application toward the cost of gross additions to the
March

10

filed

electric

utility properties of the company and its sub¬
sidiaries. Underwriter—To be determined
by competi¬
tive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Morgan Stanley & Co. Bids

—To

be

delivered at Room 18'20, 72 West Adams
St.,
Chicago 90, 111., at or before 9:30 a.m. Chicago
Time, on
April 6, 1960, subject to the right of the
company to
postpone the time of submission of bids for a
period
not exceeding 30
days in the aggregate.
•

Computer Usage Co.,

Inc.

(3/21-25)
Dec. 29 (letter of
notification) 47,000 shares of common
stock (pair 25 cents).
Price—$5 per share. Proceeds—For
general corporate purposes.

Office—100 W. 10th Street,
Wilmington, Del. Underwriters
Marron, Sloss & Co.,
Inc. (handling the
books), and Roosevelt & Gourd, New
York, N. Y.; L. B. Schwinn & Co., Cleveland, Ohio; Don¬
aldson, Luskin & Jenrette, Inc., New York, N. Y. and
—

First Albany

Corp., Albany, N. Y.

Consolidated Oil & Gas, Inc.,
Denver, Colo.
Feb. 24 filed 140,748 shares of common
stock and
rants for the purchase of 422,234 shares of
common
ers

common

rate of two

will

participations in

(letter of notification)

Proceeds—For

The

filed 304,000 shares of common

of

a new copper

Circuitronics,

ture

stock.

or

Office—East Park

Feb.

pany's construction program and (2) for the construction
of additional facilities.

per

as

Co., New

Proceeds—For purchase, construc¬

installation

ment.

(4/5)

March 4 filed $25,000,000 of first
mortgage bonds, series
due 1990. Proceeds—To be used to
(1) repay temporary

of

Street, Bordentown, N. J.
derwriter—Hayden, Stone & Co., New York.

„

and

capital.

and

pany's

Jan. 22 filed 500,000 shares of common stock.
per

tion

financing of

common

on

&

(4/4)

for the account of the holder thereof.

Husky Oil outstanding. Office
St., S. W., Calgary, Alberta, Canada.

Capital Airlines, Inc. (3/21)
Jan. 26 filed 909,659 shares of common stock

president

Eberstadt

a

Investment Corp.

2,000,000 shares of common stock. Price
share. Proceeds—Of the proceeds, $1,226,500

—

and preferred stock of
Sixth

and

F.

—$1

gift
Chock

as

stock, of which
100,000 shares are to be offered for public sale by the
company and 6,000 are outstanding and will be sold

ali

—815

—

block

Realty

filed

11

—1321

Circuit Foil Corp.

common stock.
These
exchange for shares of the

the outstanding shares of Husky Oil common,
the exchange offer is conditioned upon its acquisition of
not less than 80% of the total number of shares of com¬
mon

founder

March 1 filed 106,000 shares of

basis of eight shares of Canadian Husky for nine shares
of Husky Oil.
While Canadian Husky proposes to ac¬

quire

Black,

Underwriter

this

company's Thrift-Stock Ownership Program, to¬
gether with 175.000 shares which may be acquired pur¬
thereto. Office—341 Massachusetts
Ave., Highland
Park, Mich.

»

Husky Oil Co. (of Cody, Wyo.)

recipient of

suant

Office—405 Montgomery Street, San Francisco,
Calif.
Underwriter—Eastman Dillon, Union Securities
Co., New York City.
v

O'Nuts.

the

the

program.

Husky Oil Ltd.
filed 3,078,239 shares of

was

Proceeds—For reduction of current indebt¬

^Consolidated
March

University, the selling stock¬

if Chrysler Corp.

Price—To be supplied by amendment. Proceeds
finance a portion of the company's construction

^Canadian

who

Columbia

March 10 filed $10,000,000 of interests

thereof.
—To

To

—

York.

of the company, and

outstanding

126,000 outstanding shares of common
Price—To be supplied by amendment.

$1),

William

Full

Of the

stock.

filed

(par

Proceeds

Underwriter—Robert Edel-

California-Pacific Utilities Co.
7

15

stock

Thursday, March 17, 1960

.

edness; for drilling and completion, if warranted, of
development wells; to rework, deepen and complete, if
warranted, exploratory wells, and the balance of general
corporate purposes. Underwriter—None.

if Chock Full O'Nuts Corp.
March

Co., Inc., New York, N. Y.

March

in

May. Office—108 Liberty Life Building, Char¬
lotte, N. C. Underwriter—Morrison & Co., Charlotte.

stock

reserve,

construction of a speedway and its ac¬
The issuer expects to stage its first stock car

.

to be offered by the company for certain
Price—For rights offering, to be supplied by

properties.

amendment.

race

(3/21-31)

Inc.

shares

000

Proceeds—For

cessories.

Underwriter—R. F.

Co., Inc., 39 Broadway, New York 6, N. Y.

Caldata,

Feb.

days, after which such shares may be publicly offered.

N. Y.

Ave., Lindenhurst,

.

company proposes to offer its
of record March
25, 1960, the

one

common

war¬

three

common

held.

share

and

warrants

for

the

stockhold¬

purchase

of

The

shares for

each

10

common

shares

then

registration statement also included an addi¬
tional 205,277 of
outstanding shares which may be of¬

fered for sale by the present holders

Oct. 15 filed
$330,000 of convertible

100%

common

debentures, and 70,debentures,

stock. Price—For the

of

principal amount; for the stock, $5
per share.
Proceeds—From 10,000 shares of the
common stock, to
the present holders
thereof; from the rest of the offer¬
ing, to the company to be used for
expansion and as
working capital. Office—6810 S. W. 81st
St., Miami, Fla.
• Detroit Steel Corp.
March 14 filed
1,680,844 shares of common stock. The
company

proposes

to

offer

this

stock in
exchange for
outstanding shares of the common stock of Portsmouth
Corp. on the basis of 1.55 shares of Detroit Steel
common

for each share of Portsmouth
common.' Shareholders
Detroit Steel will be asked to
approve on

of

April 11, 1960,
plan of reorganization
providing for the purchase of
Portsmouth stock pursuant to
a

said

offer will
stock

is

be

declared

effective

if

exchange offer.
80%

or

more

tendered in exchange.

The

of

the

Diversified

Communities, Inc.
Sept. 25 filed 367,200 shares of
common stock
(par $1).
Price—To be supplied by
amendment. Proceeds—For ac¬
quisition of Hope
Homes, Inc., Browntown
Cantor
be

&

used

Goldman

as

Builders, Inc., with

Water Co. and
balance to

the

working capital.

Office—29A Sayre Woods
Shopping Center, Madison
Township, P. O. Parlin, N. J.

Underwriter—Lee Higginson
Corp., New York.
ing—Postponed.
•

Don Mott

Offer¬

Associates, Inc.

Oct. 27 filed
161,750 shares of class
B, non-voting, com¬
mon
stock (par $5).
Price—$10 per share. Proceeds—
general corporate purposes, including payment on
a
building and the financing of loans.
Office—Orlando,
Fla. Underwriter—Leon
H.
u

stock.

right to subscribe for

common

now

thereof, and 100,-

Pa.,
•

on

a

"best efforts"

Sullivan, Inc., Philadelphia,

basis.

Dworman

Jan. >15
$10

pei

poses.

Corp. (4/4-8)
filed 300,000 shares of
common stock.
Price—
share.
Proceeds—-For general,
corporate pur¬

Office—400 Park

Avenue!

derwriter—Charles Plohn

& Co

,

New York City
New York City*

Un¬

Volume

Number 5934v.

191

.

The Commercial and Financial Chronicle

(1205)

it Dynex, Inc.
\
March 15 filed 54,000 common shares (25 cents par) and
warrants for an additional 5,000 shares of this stock. The

sisting of $100 of debentures and 10 shares of class A
stock.; Price—$155 per unit. Proceeds—For purchase of
land and the cost of construction of racing plant as well

to make a public offering of 30,000.
shares.
Of the additional 34,00,0 shares, 20,000 are being
issued in escrow for the account of, and may be resold
by, the holders of capital stock and certain creditors of
Matronicsv Inc., after July 22, 1960 at the then prevail¬
ing market price; and 4,000 shares for the account of
the holders of the common stock and a creditor of Optics
Manufacturing Corp.
The 5,000
warrants
are
being
issued to stockholders and certain creditors of Matronics,
Inc.
Price—To be supplied by amendment. Proceeds—
To finance the activities of the two newly-acquired con¬

as

proposes

company

ing

To

contracts for

other

Way, Syosset, N. Y.
& Co., New York.

•

York

and

Philadelphia;

150,000 shares of common stock (par $1).
supplied by amendment. Proceeds—To re¬
pay $250,000 of borrowings usbd to purchase additional
tooling for.. manufacture of new products; $200,000 to
Electric

obtained

to

fund

the

<

purchase

Co., Ltd.; $200,000 to defray
improvements and in moving

of

leasehold

in

connection

the

with

occupancy

of its

new

the

York;

and

1

nated
of

N.

7th Ave.,

stock

•

center

test

Office—

company.

.

and

working capital.

Office —
Underwriter

Development Corp.

filed

2

Ohio.
Co., Cincinnati, Ohio.

&

12,555,600

shares

of

held.

common

of

convertible

subordinated

Price

—

To

be

supplied

Proceeds—For general corporate

amendment.

Office—2828 S. W. 22nd

March

,<'

•

filed

16

General

Feb.

26

Office—Schenec¬

(3/28-4/1)

200,000 shares of common stock (par $1).
supplied by amendment. Proceeds—For

Gouverneur

—Carl

Loeb, Rhoades & Co., New York.

•

M.

St., Newark, N. J.

Debentures are convertible into common
share. Also, 68,000 shares of common
stock (par 10 cents) to be offered in units of one $51
debenture and 68 shares of common stock.
Price—Of

of

filed

the

.

per share.
Proceeds—For capital and sur¬
plus of the company, which has not as yet done any life
insurance business but expects to sell all forms of it.
Office—West Memphis, Ark. Underwriter—The offer¬

eral

corporate purposes. Office—514 N. E. 79th Street,
Miami,- Fla. " Underwriter—Myron A. Lomasney & Co.,

f
•

~

'

-*

(4/1)
Jan. 29 filed 153,000 shares of
$3.25 per share. Proceeds—For

one

new

share

for

eachlO

of

xerographic equipment for

u

*

,

Proceeds—To

+

,

Price-

pay

Harvey Boat Works, Inc.
(letter of notification) 100,000 shares of class A
stock (par 10 cents).
Price—$2.25 per share.
Proceeds
For working capital, production and other
equipment. Office — 21460 Tualatin Valley Highway,
Aloha, Ore. Underwriter—V. S. Wickett & Co., Inc., New
York, N. Y., has withdrawn.
common

Head

Ski Co., Inc.
(letter of notification) 27,883 shares of common
;stock (par $1.50), of which 9,883 shares are to be of¬
fered by stockholders. Price—To be supplied by amend¬

of

indebtedness

and

1

filed

use

general

corporate

pur¬

(5/10)

$700,000 of 8%

•

subordinated Installment

Great Lakes

Aug. 31
'

24

ment.

Proceeds
For working capital.
Office — 15 W.
Aylesbury Road, Timonium, Baltimore County, Md. Un¬
derwriter—Robert Garrett & Sons, Baltimore, Md.
•

—

(3/22)
$3,000,000 convertible subordinated deben¬
tures, due August, 1975. Price—At par. Proceeds—For
expansion purposes and the discharge of debts. Office
—250 Park Ave., New York City. Underwriters—Allen
& Co., and Van Alstyne, Noel & Co., both of New York
City.
•
'
Highway Trailer Industries, Inc.

Jan. 29 filed

■

•

HilPs

Feb.

25

Bowling Corp. (3/22)
filed 120,000 shares of common stock (par $1).
be supplied by amendment.
Proceeds—For

Dec.* 28; filed- $4/500,000 of 20-year 6% .subordinated
sinking fund debentures due 1980 and 450,000 Shares of
class A stock (par $5) to be offered in units, each con¬

general corporate purposes/ including the development
of
bowling lanes, bars, and restaurants on various

.

Supermarkets,

Inc.

(4/4-8)

filed

100,000 shares of class A stock. Price—To
supplied by amendment. Proceeds—$700,000 to pur¬

be

chase

fixtures, equipment and inventory for new super¬
markets, and the balance will be available for further
expansion and working capital. Office—55 Motor Ave¬
nue,
Farmingdale, Long Island, New York.
Under¬
writer—Kidder, Peabody & Co., New York City.
•

stock. Price—
by subsidiaries for

Price—To




of

inventories

share.

per

Hi-Press

Air

Conditioning Corp. of America

(3/22)

common

Co., Inc. and Globus, Inc., both of New York.

-'•>

Inc.

Ludelle

2730

debentures, due in March, 1970, 70,000 shares of com¬
mon stock (10 cents par) and-35,000 common stock pur¬
chase warrants (exercisable at $4.30 per share until May
15, 1965), to be offered in units consisting of $100 of
debentures, 10 common shares, and five warrants. Price
—$143 per unit.
Proceeds—To be applied toward the
company's general business activities. Office—292 Madi¬
son
Avenue, New York. Underwriters—Ross, Lyon &

(4/11-15)

Finger Lakes Racing Association,

—

Inc.

Goelet Corp.

filed 100,000 shares of class A common stock,
(par 50 cents). Price—$6 per share. Proceeds—For gen¬

-■

end Of March.

Goddard,

March

March 3

New York. * V

Office

Office—1309 North Dixie Highway, West Palm
Beach, Fla. Underwriters — Robert L. Ferman & Co.,
Miami, Fla. and Godfrey, Hamilton, Magnus & Co., Inc.,
New York City.

it Fidelity Insurance Agency, Inc.
(letter of notification) 250,000 shares of common
stock.- Price—At par ($1 per share). Proceeds—For the
operation of an insurance company. Office—519 Phila¬
delphia St., Indiana, Pa. Underwriter—None.

•

expansion.

for

poses.

Feb. 29

•

and

reduction

ing is to be made through three promoters and officers
who will receive a selling commission of $2 per share.

Figurette, Ltd.

pay

materials

Price—$10

•

Proceeds—
off current accounts payable; purchase of raw

.Street, Fort Worth; Texas. Underwriter—R. A. Holman
& Co., Inc., New York, N. Y. Note—The name has been
changed from Glass Magic, Inc. Offering—Expected at

Co.

(par $1).

each.

debentures, at par; of stock, $102 per unit.
To

•

300,000 shares of common stock

$51

stock at $1.50 per

/
Insurance

rate

•

'

Glass

Magic Boats, Inc.
Dec. 30 (letter of notification) $51,000 of six-year 6V2%
convertible debentures to be offered in denominations

filed

Life

the

shares of common stock, to be
by the company to its common

Feb. 29

Underwriter

Office—65

Inc.

Reserve

at

increased

Feb.

be

v

—

19

333,213

bank debts and for
working capital. Underwriter—Arnold Malkan & Co.,
Inc., and Street & Company, Inc., both of New York
City.

repayment of bank borrowings and for working capital.

stock, to be offered
for subscription by its stockholders at the rate of one
new
share-for each share held, with rights to expire
on
March 28. Price
To be supplied by amendment.
Proceeds—To increase capital and surplus. Underwriter
—Stern Brothers & Co.', Kansas City, Mo.

Federated

$4

1,200,000 shares of common stock, which

Instrument Corp.

filed

Price—To

Feb. 8 filed 100,000 shares of capital

Jan.

filed

.

;

• Harn
Corp., Cleveland, Ohio (4/18-22)
" 1?
0,'A.
Feb. 23 filed 187,500 shares of common stock.

by

"

Washington, D. C.

...

(4/8)

Inc.

„

be purchased under the issuer's Savings and Secu¬

,

of

Street, Birmingham, Ala.
Underwriters, Inc., also of

leasing, principally for the new copier. Office—6 Haloid
St., Rochester, N. Y. Underwriter — The First Boston
Corp., New York.

purposes.

tady, N. Y.

.-are

200,000 shares of class A common stock.
Price—$5 per share. Proceeds—For purchase of various
properties, for development and subdivision thereof, and
to meet operating expenses, salaries and other costs, but
principally for the purchase and development of large
tracts of land.
Office—3636-16th Street, N. W., Wash¬
ington, D. C. Underwriter—Consolidated Securities Co.

for

Street, Miami, Fla. Underwriter

rity Program for Eligible Employees.

*

24

11

18th

and

Southern

—

—

generally limited to officials, leading
employees, person on retainer and former employees of
GeneraLElectric. Co. and/or its subsidiaries. Office—570
Lexington Avenue, New York City.

Dec.

of two shares for each
Price—To be supplied by amendment;

shares held. Price—To be supplied by amendment. Pro¬
ceeds—To retire some $4,000,000 of bank note indebted¬
ness
incurred to replenish working capital which has
been reduced primarily by expenditures for
tooling and
development engineering in connection with the Xerox
914 Office Copier, and for inventories of
equipment for
leasing. The balance of the proceeds will be added to
the company's general funds and will be used primarily

Electric Co.

^ General

March, 1959 registration statement). Participation in the

Estates,

1960, at the rate

Avenue

stockholders
„

—Goldman, Sachs & Co., New York City, will head a
group which will purchase any unsubscribed debentures.
Offering—Expected in mid-April.

-

Employers Reinsurance Corp.

fice—First

debentures, due May 1, 1975, to be offered for subscriptirm
nf
in
mtin
tion by Vir»iriorc of the mitctanrjinC nnmmnn in tVin ratio
holders
outstanding common
the
of $100 principal amount of debentures for
each 50

I*'1' v"-." *"

March 14 filed 175,000 units of Trustees' Certificates (in
addition to 92,359 units remaining to be used under a

•

insurance

additional

of

General

may

*

an

Phoenix, Ariz. Underwriter—None.

Montgomery Road, Cincinnati,

March

it Eifun Trusts

Trusts

1,

then held.

Proceeds—To repay debt of $450,000 owed to Foundation
Investment Corp. and additional working capital.
Of¬

100,000 shares of com¬

Price—$3 per share. Proceeds—For con¬
vehicles, a demonstration and

(no par).

—Westheimer

stock (par 20 cents) to be offered in units,
"consisting 6f $1,000 debenture and 200 shares of
common stock,? Price—$1,300
per unit.
Proceeds—For
payment of an outstanding mortgage note and working
capital. Address — East Highway 50, Vermillion, S. D.
Underwriter
Woodard
Elwood & Co., Minneapolis,

Elfun

Under¬

Hills, Calif.

Insurance Co.

offered for subscription

(letter of notification) 84,450 shares of common

struction

at

common

..

April

share

'

General Aeromation, Inc.
March 3

(letter of notification) $100,000 of 7% subordi¬
due April 1, 1970 and 20,000 shares

•;

ord

St., New York, N.'Y. Under¬

(par $1). Price—-$3 per share, Proceeds—For

for operating

expenses

5330

of

expenses

stock

mon,

each

Minn.

Garden Grove, Calif.

„

debentures

■ —

Gulf States Life

:

March

.

Price

common.

Feb. 26 filed 1,000,000 shares of common
stock, to be of¬
fered for subscription by common stockholders of rec¬

(3/21-23)

^ Frontier Assurance Co.
March 7 (letter of notification)

Electronic's Inc.
Feb.

Harbor Boulevard,

it Haloid Xerox,

Stern/ Frank,

Ahg&esr*^ —''"r" •*'

Meyer & Fox, Los

of

Birmingham.

6011

New

11801

writer—Syndication Investors Corp., 527 Madison Ave.,

automation

and

share

writer—V. K. Osborne & Sons, Inc.,
Beverly

Country Club Ltd.

motel.

Calif.; $150,000 for purchase of additional
molding equipment; and the remaining pro¬
ceeds to be applied against outstanding bank loans or
added to working capital. Office—1010 East 62nd Street,
Los Angeles, Calif. -Underwriters—Shearson, Hammill &
-

one

Dollar Nurseries, Inc.
(letter of notification) 300,000 shares of common
stock (par 50 cents).
Price—$1 per share. Proceeds—
For equipment and
furnishings, leasehold of improve¬
ments, inventory and general working capital. Office—

Underwriters

injection

Angeles

and

Green

15

Hawthorne,

Co.,' Los

debenture

New York, N. Y.

cost

plant

of

Feb. 17

Circle, Coral Gables 56, Fla. Underwriter—None.

Office—11 W. 42nd

deben¬

amended.

payable and corporate in¬

Grown Greenhouse

Glass

Corp. (3/28-4/1)
$11,500,000 of cumulative income

1, 1975, and 575,000 shares of common
(par $1), to be offered in units of $20 principal

(letter of notification) $220,000 of limited part¬
nership participations to be offered in units of $1,000 or
$5,000. Price—At face value. Proceeds—To purchase a

Price—To be

borrowings

accounts

of

Office—Bensenville, 111. Underwriter—None.

Four Acre Motel Associates

Feb.

and

Feb.-15 filed

Astral

reduction

Forest Hills

•

(3/28-4/1)

New

units, each consisting of a $100 debenture
shares. Price—$115 per unit.
Proceeds

(3/28-4/1)
Jan. 29 filed 75,000 shares of common stock (par 100).
Price—$4 per share. Proceeds—To build a country club
in Forest Hills, L. I., N. Y. Office—179—45 Brinckerhoff
Ave., Jamaica 33, L. I., N. Y. Underwriter—Jerome
Robbins & Co., 82 Wall St., New York City.

}!: El don Industries, Inc.- (3/28-4/1)

repay

in

common

hambra

Co., Inc., New York.

filed

—$28 per unit. Proceeds—For debt reduction and the
building of a recreation park.
Office—3417 Gillespie
Street, Dallas 19, Texas. Underwriter—Glore, Forgan &
Co., New York City.
Note — This statement is to .be

Products, Inc.
March 7 (letter of notification) 1,860 shares of common
stock (par 10 cents).
Price.—$20 per share. Proceeds—
To go to a selling stockholder. Office—1250 South Al-

Schmidt, Robert & Parke, of Philadelphia.

"

10

debtedness.

outstanding Shares of common stock
($5 par). Price — To be supplied by amendment. Pro¬
ceeds—To.rselling stockholders.
Office—D St. below
Erie Ave.,. Philadelphia, ; Pa. ' Underwriters —
Kidder,
Peabodv Jk .Co.'. of

10

tures, due Jan.
amount

and

Feb. 18 filed 150,000

:

.

,

Great Southwest

Dec.

stock

—For

Office—Hotel Troy Building, Troy, New York.

Edgcomb Steel Co.

•

Nicollet

Office—212

gas.

Nashville, Tenn. Underwriter—Cres¬
Co., Inc., Bowling Green, Ky.

cent Securities

Corp.,
filed $691,80,0 of registered subordinated

securities

and to expand
Office—123 Eileen

thruways, parkways and highways. :n the amount of $25
of such breakdown insurance for the purchase price of
25 cents, and for a public relations and publicity pro¬

;

Co.

Price—

amendment. Proceeds—For invest¬
Avenue, Minneapolis, Minn.

supplied by
Office—512

ic Florida

&

Investment

(letter of notification) 200,000 shares of common
(par 50 cents). Price—$1.50 per share. Proceeds—

For expenses for
exploring for oil and
Sixth Ave., South,

14
de¬
bentures, 6%, due February, 1972, and 69,180 shares of
common
stock.
The company proposes to offer these

concerns,

R.;Boland

Business

110,000 shares of common stock.

Production Corp.

Oct. 15
stock

March

Underwriter—Myron A. Lomasney

Underwriter—John

.

Green River

• FLck-Reedy

Aug. 31 filed 160,000 shares of capital stock (par 10c)i
of which 100,000 shares are to be publicly offered. Price
—$2.50 per share. Proceeds — To provide funds for the
purchase of vending machines which will be used to
distribute automobile breakdown insurance policies on

gram.

be

filed

Underwriter—None.

H. P. Corp.. /.*■

E.

7

ment;

to finance the starting of inventories and adver¬
new products, to purchase additional
equipment and inventory for the manufacture and pro¬
of the company's business.

—

First Midwest Small

cerns,

duction of

organizational and miscellaneous expenses. Of¬
Street, Brooklyn, N. Y. Underwriter
New York and Philadelphia. Offer¬
Delayed.

March

tising incident to

the scope

Michigan properties. Office—6336 Woodward Ave., De-'
troit, Mich. Underwriter—Straus, Blosser & McDowell,
Chicago, 111. •

other

fice—142 Pierrepont
—Stroud & Co., Inc.,

37

Dec. 29 filed 200,000 shares of common stock.

Price—$3
share. Proceeds—For working capital. Office—405
Lexington Ave., New York City. Underwriter—Plym¬
outh Securities Corp., New York City.

per

it Home-O-Nize Co.
(letter of notification) 1,666 shares of common
stock (par $10). Price—$30 per share.
Proceeds—For
construction, repayment of monies borrowed, and work¬
ing capital. Office—301 Oak St., Muscatine, Iowa. Un¬

March 8

derwriter—None.
Howe Plastics & Chemical

Companies, Inc.

(3/28-4/1)

notification) 100,000 shares of com¬
cent). Price—$1 per share. Proceeds
general corporate purposes. Office—125 E. 50th
Street, New York, N. Y. Underwriter—Hilton Securi¬
ties, Inc., 580 Fifth Avenue, New York, N. Y.

Dec.
mon

14

(letter of

stock (par one

—For

Industron
Jan.

14

common

Corp.

60,000 shares of class A
Price—$4 per share. Proceeds

(letter of notification)
stock

(par $1).

Continued

on

page

38

'

38

The Commercial and Financial Chronicle

(1206)

unsecured bank loans.

Continued from page 37

capital.
Office — 55 Needham Street,
Newton Highlands, Mass. Underwriter—Schirmer, Atherton & Co., Boston, Mass.
•—For

working

(3/28-4/4)

Inland Container Corp.
March

filed

2

175,000 shares of class A common stock

(no par). Price—To be supplied by amendment. Proceeds

—$2,500,000 to pay a note, and the balance for general
corporate purposes.
Office—Indianapolis, Ind.
Under¬
writer—Lazard Freres & Co., New York.
Credit Corp.

Inland

.

Feb.

(3/28-4/1)
190,000 shares of class A stock (par $1),

filed

12

Price—To

be

amendment. Proceeds—For
acquisition of outstanding accounts of Ardisco (affi¬
liate); and the balance for additional working capital.
Office—11 West 42nd Street, New York 36, N. Y. Under¬
by

supplied

writer—Shearson, Hammill & Co., New York.
Insular Finance Corp.

;

^

Co., Inc., Santurce, Puerto Rico.

None.
International

Aspirin Corporation
Dec. 7 filed 600,000 shares of common stock.
Price—$3
per share.
Proceeds—For general corporate purposes.Office—1215 Denver U. S. National Center, Denver, Colo.
Underwriter
Speculative Securities Corp., 915 Wash-'
—

ington Street, Wilmington, Del., on a "best efforts" basis.
International

Bank, Washington, D. C.
Dec. 29, 1958, filed $5,000,000 of notes (series B, $500,000,
2-year, 3% per unit; series C, $1,000,000 4-year 4% per

unit; and series D, $3,500,000 6-year, 5% per unit). Price
of principal amount.
Proceeds—For working
capital.
Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.

•—100%

Interstate Securities Co.
23

filed

of

preference

stock

each

for

four

shares

held.

Rights dates are March 4 to April 7. Price—To be sup¬
plied by amendment. Proceeds—For reduction of shortterm

notes.

Office—3430

Broadway,

Kansas

City,

Mo.

Stern Brothers &

Investors
Feb.

12

Corp. of

filed six series of

aggregating
tached

Co., Kansas City, Mo.

Funding
$1,800,000

warrants

31,500 shares of

for

10 %

in

the

common

New

York

subordinated debentures

principal amount, with at¬
purchase of an aggregate of

stock at $10 per share. Price—

Debentures

(with
warrants)
at
100%
of
principal
Proceeds—To be added to the company's gen¬

amount.

eral

funds

and

working capital and will be used pri¬
marily for the purchase or improvement of parcels of
real estate.

Underwriter—None.

$15,000,000 of first mortgage bonds, series

1990.
Proceeds—To retire $3,000,900 of bank loans
incurred to finance construction costs and for additional
construction expenditures. Underwriter — To be deter¬
mined by competitive bidding. Probable bidders:

Halsey,
Stuart & Co. Inc.; The First Boston
Corp.; White, Weld
& Co. and Eastman
Dillon, Union Securities & Co. and
Harriman Ripley & Co. (jointly); Lehman Brothers and
Glore, Forgan & Co. (jointly); Equitable Securities
Corp.; Blyth & Co., Inc. Bids—Expected to be received
on April 13
up to 10:30 a.m. (CST) in
Chicago, 111.
•

Jones & Frederick, Inc. (3/21-25)
Feb. 23 (letter of notification)
100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—For
down payment on

property, advertising, furniture and

working capital.

Office—401 Miracle Mile, Coral
Gables,
Underwriter—A. J. Frederick & Co.,

Fla.

.Inc.,

'York, N. Y.
•

12

stock,

New

Note—Underwriter is unrelated to issuer.

Keystone Electronics Co., Inc.

Feb.

filed 200,000

133,334 shares

shares

of

common

be

to

(4/4-8)
stock.

Of

this

offered

for public sale
and 66,666, being out¬
standing stock, by the holders thereof. Price
$3 per
share. Proceeds—For additional
equipment and inven¬
tory; for research and development; and the balance for
for the

of

account

are

the

company

—

working capital.

Office—65 Seventh Ave.,
Newark, N. J.
Underwriters—J. A. Winston &
Co., Inc. and Netherlands
Securities, Inc., both of New York.
•

Kratter Corp. (3/21-30)
15 filed 1,300,000 shares of

Feb.
.

cumulative

con-

outstanding

class A and class B

common

preferred for each

three

not

in

statement

exchange
also

common

shares

one

held.

Shares

may

130,000

preferred

shares

and

offering of the preferred, and an indeterminate number
rights which may be so acquired, which securities

of

thereafter

be

resold

by the

company from time
Exchange. Proceeds—
$8,000,000 to acquire the Americana Hotel, Bal Harbour,
Fla., and in the amount of $3,000,000 for repayment of
to

time

on

the




officers of the

by

ui

are

to

outstanding and will be sold,
Price—To be supplied by
equipment and facilities

company.

amendment. Proceeds—For

enlarge the

new

companv's

warehouse.

—Kidder, Peabody & Co., New York.

Underwriter'

>

"

*

Lewis
Jan.

lo

common

Swimming Pool Construction Co., Inc. J
(letter of notification) 60,000 shares of class A
stock
(par 50 cents)., Price — $5 per share.

Proceeds—To

acquire property and for working capital.
Falls Church, Va. Underwriter
& Transfer Corp., Washing¬
J.
;

Office—115 Mary Street,
—Securities Registration

ton, D. C.
•

•

.

Liberty Loan Corp.

(4/5)

*

120,000 shares of 5%% convertible prefer¬
stock, 1960 series. Price—To be supplied by amend¬
Proceeds—To selling stockholders.
Office—634
N. Grand Ave., St.1 Louis, Mo. Underwriters—Riter &
Co., New York; Edward D. Jones & Co., St. Louis, Mo.;
ence

ment.

and

Bache

&

Co., New York.

★ Litho-Web,
March

YY

../.■/,Vr-''. i-).-

Inc.

7

(letter of notification) 130,000 shares of com¬
(par 50 cents). Price—$1 per share. Proceeds
—To purchase machinery and equipment and for work¬
ing capital. Address—P. O. Box 168, Leaksville, N. C.
★ Loomis-Sayles Common Stock Fund, Inc., BostonMarch 14 filed 1,900,000 shares of common stock. Pro¬
ceeds—For investment.

Louisiana
Feb. 11 filed

American

Stock

snares

of

common

(par lu cents;. Price—$1 per snare. Proceeds—for;

general

W. lOtli Street, ;

DLice—lOO

corporate purposes.

Wilmington, Del.
New York,

Liiderwriter—Glenn Arthur Co., Inc.,

N. Y.

if Me.vilte Shoe Corp.
March 15 filed $12,000,000 of 20-year debentures.
—To

be

ment

supplied by amendment.

of

bank

general

loans,

corporate

New

York

March

debentures, due la75.

and
City.:
Smith

York

Fenner

&

.

subordinated'

price—To .be supplied by amend-'repayment of a temporary bank'

Proceeds—For

ment.

capital,

Broadcasting Corp.
$6,000,090 of convertible

filed

10

working

Office—New

Lynch, Pierce,
(managing).

City

if Metropolian

increased

purposes.

Price.

Proceeds—tor repay-,

,

Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades & <Co.;
both of New York. Offering—Expected in
April or May.'
Metropolitan Edison Co. (4/26)
" '
)
$15,000,00 of first mortgage bonds, due 1990."

Feb. 29 filed

Proceeds—For

1960

construction

program. Underwriter
by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co.,
Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel &
Co. (jointly). Bids — Expected to be receved
up to IT
a.m. on April 26.

—To

•

be

determined

Meyer

Feb.

(Fred), Inc.

filed

3

(without
account

400,000

A

class

of

V

includihg 300,000 shares for the
the issuer, and 85,000 shares for a
company-,
estate.
The remaining
15,000 shares are for

officers and employees. Price—To be
supplied by amend¬
Proceeds—For the general
fund, including con¬

ment.

structing and equipping
ing capital. Office—721

Underwriter—Kidder,

$4

share.

per

new

S.

shopping centers and work¬

W.

4th

Peabody„ &

Ave., Portland, Ore.
Co.

•

bank

porary

Power & Light Co. (3/29)
$20,000,000 of 1st mortgage bonds, due April

1, 1990. Proceeds—For construction and other corporate
Underwriter—To be determined, by competi¬
bidding. Probable bidders:* Halsey, Stuart & ;Co.
Inc.; White, Weld & Co., Blyth & Co., Inc. and Shields

r,

1

■

-

stock.

Proceeds—$150,900 as reduction
loans, $140,000 in reduction of

Price—
of

tem¬

accounts

payable, $65,000 to repay notes and loans payable to
Barney B. and Nathan S. Lee, and the balance for gen¬
eral

corporate

purposes.,'Office—6454

Miami, Fla* Underwriter
Corp., Miami. Fla.
if Microdot Inc.

-

stock

common

value)

par

of

(3/21-25)

shares

if Miami Tile & Terrazzo, Inc. * '•* : March 11 filed 125,000 shares of common

stock

mon

slock

connected

March 4 filed

March

N.

Plymouth

—

-

E.

4th

Bond

•

&

Ave.;
Share

'

'

(4/20)

11. filed

204,000 shares of capital stock (no
par)
60,000 shares will be offered for public sale
by the issuing company, and 144,000 shares are presently
of

which

tive

outstanding and will be offered for sale by the holder
thereof.* Price—To be
supplied by ;, amendment. Y Pro¬
purposes in the amount of

purposes.

(jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc.; 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 Glore, For¬
& Co.

gan
a.m.

(jointly). Bids—To be received up to 11:30
(New York Time), on March 29, at the offices of

Middle South

4, N. Y.

-

Utilities, Inc., Two Broadway, New York
,•

,

•

Properties,

Inc.

(letter of notification)
stock (par $1). Price—$4 per
bills, for acquisition of Lacey
working capital. Office—603
Wash.

Underwriter

Salt Lake

—

75,000 shares of common
share. Proceeds—To pay

Shopping Center, and for
Central

Bldg., Seattle 4,
Andersen, Randolph & Co., Inc.,

Macco

Corp. (3/21-25)
filed 200,000 shares of

operations,

and^ develop land, and for general
So.

to acquire
corporate purposes...

Paramount

Blvd., Paramount, Calif.
Underwriters—Kidder, Peabody & Co., New York City,
and Mitchum, Jones &
Templeton, Los Angeles.
1
Magnasyc Corp.
Feb. 26 filed 200,000 shares of
capital stock. Price
per

issory

notes

Lewis

in

—

$5

held

the

$406,000;-to

by Trustees under

amount

of

in full

pay

the

$78,732, and

portion of the proceeds from

will

prom¬

M.

of

(together

H.

with

a

bank

a

loan) for the pur¬
equipment costing $200,000, for
property additions and
improvements, and for working
capital. Office
220 Pasadena
Ave., South Pasadena,
Calif.
Underwriter—White, Weld & Co., Inc., Los An¬
geles and New York.
/I\
Mid-America Minerals, Inc.

chase of machinery and

—

Nov.

16

filed

400,000 shares of class A common stock
Price—$5 per share.
Proceeds—For general

(par $1).

corporate purposes, including the reduction of indebted¬
ness, acquisition of properties, and additional
working
capital. Office—500 Mid-America Bank
Building, Okla¬
•

Jan. 28
common stock. Price—To
be supplied by amendment. Proceeds—To
repay indebt¬
edness incurred in real estate

Office—14409

ceeds—To retire bank loans incurred for
working capital

homa City,

City, Utah.

Okla.

Underwriter—None.

Mid-America Pipeline Co.

Feb.

17

(3/21-25)

filed

$20,500,000 of 6V2.% subordinated deben¬
tures, due March 1, 1980, and 1,435,000 shares of common
stocis (no par), to be offered in units of
$50 of debentures
and >3V2

shares, of

amendment.

Price—To

common.

Proceeds—Payment

be supplied by
of interest, cost of * con¬

structing and operating
purposes. Office —
Stearns & Co., and
NeW York City.

a pipeline, and general
corporate
Tulsa, Okla. Underwriters
Bear,
—

White, Weld & Co., Inc.,

both

of

share.

Proceeds—To repay interim loans up. to
$100r000 to Taylor &
Co.; $100,000 for expansion of labora¬
tory facilities and personnel for research and
develop¬
ment; $100,000 to increase plant production
facilities;
$116,000 for tooling and production of

proprietary items;
$110,000 for increase of inventory; $75,000 for research
and development; and
$2,000 for documentary stamps;
$110,000 will be added to working capital; and the re¬
maining

$88,400

is

unallocated.

Office—5546

Satsuma

Ave., North Hollywood, Calif. Underwriter-r-Taylor and
Company, Beverly Hills, Calif.
Majestic Penn State, Inc.
Feb. 26 (letter of
notification) 100,000 shares of common
stock (no par).
Price—$3 per share. Proceeds-r-To pur¬
ital.

equipment, liquidate loans, and for working

cap¬

Office—22nd

Street and Lehigh
Avenue, Philadel¬
phia, Pa. Underwriter—Harrison & Co.,
Philadelphia,
Pennsylvania.

share of

be offered for public
properties.
The registration

for

includes

the rate of

130,000 class A common shares which may be acquired
by the company in stabilizing transactions during the

would

casual stock (par $2.50) of
60,000 shares will be offered for public sale by com¬

and. 56,000 shares

pany

O

(3/21-25)

(3/21-25)'

(letter ol notification) au0,uuu

loan and interest thereon, and for working capital.
Office;
—205 East 67th St.; New York City.
Underwriters—.

.

at

purchased by stockholders
or

which

chase

$1.20

vertible preferred stock (par $1) to be offered for sub¬
scription at $20 per share by holders of

sale

Co.

Jan. 20

(4/13)

due

a

& Co., New York.

Loveless

if Iowa-Illinois Gas & Electric Co.
March 14 filed

Price—To

supplied by amendment. Office—2809 Losey Blvd.,
Crosse, Wis. Underwriter—Shearson; Hammill
Steel

7

& Co.

Underwriters—Harriman Ripley & Co., Inc., New York;
and

stock

South La

Latrobe

Megadyne Electronics, Inc.

Jan.

Inc.,
common

To selling stockholder.

—

•

Thursday, March 17, 1960

.

Underwriter—Merrill

(3/25)

100,000 outstanding shares of

Proceeds

(par $2).
be

Cooler Co.

Hirsch & Co. and Lee

—

Underwriter—Smith, Clanton & Co., Greensboro, N. *C.:

165,000 shares of cumulative preference
stock, convertible ($20 par), to be offered for subscrip¬
tion by common stockholders on the basis of one new
share

La Crosse

and

if Insured Mortgages of America, Inc.
March 14 filed $1,000,000 of 5%% collateral trust bonds.
Price—At 100% of principal amount. Proceeds—To repay
temporary bank loans and to purchase additional in¬
sured mortgage loans, and for other corporate purposes.
Office—575 Colman Bldg., Seattle, Wash. Underwriter—

Feb.

•

Feb. 9 filed

Feb. 12 filed 11 o,uuu snares

1

(letter of notification) 150,000 shares of common
stock (no par). Price — $2 per share. Proceeds — For
working capital.
Office—Avenida Condado 609, Santurce, Puerto Rico.
Underwriter—Caribbean Securities

•

New York City. Underwriters
Higginson Corp.

(formerly General Finance

Corp.)
Feb.

The company also intends to use

$2,587,500 for the exercise of a right of a subsidiary to
acquire the interests of certain ventures in and to leases
and mortgage pertaining to the Kratter Building, and
112-122 W. 34th Street, in New York; $2,500,000 for the
development of its Ebbets Field housing project
in
Brooklyn; and $800,000 for the prepayment of certain
mortgages.
Any excess will be added to the general
funds of the company to be used from time to time for
general corporate purposes. Office—521 Fifth Avenue,

,,

Mayfair Industries, Inc. (3/21-25)
Feb. 17 filed 300,000 shares of common
stock. Price—To
be supplied by amendment.
Proceeds—For general cor¬
porate purposes, including the repayment of indebted¬
ness.
Office
Lafayette, La. Underwriter
—

—

Emanuel

Deetjen & Co. (managing), New York City.

if Medicard, Inc.
March 9 (letter of
notification) 300,000 shares of class. A
common stock.
Price—At par ($1 per share). Proceeds
—For

reserve

for

medical

loans

and

operating capital.
Office—508 Security Bldg.,
Denver, Colo. Underwriterr—
Equity Investment Corp., same address.

• Middle South Utilities, Inc.
(4/20)M§rch 11 filed 650,000 shares of common stock
(par $10).
Proceeds—The

company

injadditional stock of its
L(ght

Co.;

$6,000,000

proposes

to

invest

$7,500,000

subsidiary, Arkansas Power &

will

be

used,to repay in full a
in January, 1961; and the remain¬
ing proceeds will be held in the
company's treasury for
father investments in system, operating companies and
fof other corporate purposes.. Office—2, Broadway/ New

promissory note due

saffc'"- Underwriter—To

.be determined by competitive
Probable bidders: Kidder,
Peabody. & Co. and
^rill Lynch, Pierce, .Fenner & Smith Inc. (jointly);
I^th & Co., Inc.;. Lehman Brothers; The First Boston
Yrp., Eastman. Dillon,_ Union Securities & Co. and
iuitable Securities Corp.
(jointly). Bids—Expected to
^received by the company, at its Board Room, 28th
2
Broadway, New York 4, N. Y», up to 12 o'clock
ijpon, DST, on April 20, 1960 or on such
later date as
jdding.

py be fixed by the

company.

lills Factors Corp.
(4/18-22)
larch 8 filed for not less than
201,200

bre than 270,000 shares of

common

>

shares

and

not

stock

($2.50 par).
p|ice—To be supplied by amendment, Proceeds — To
purchase outstanding stock and for the
general funfl.
Office—New York City,
Underwriters—Lee Higginson,

Clrp.

and

Yjrk City.
•

C.

E.

Unterberg, Towbin Co., both
'

of

New

Missile Components Corp.
<3/21-25)
(letter of notification) 60,000 shares of common
10 cents). Price—$3 per share. Proceeds—

Jan. 18

stack, (par

.■

Volume

Number 5934

191

.

.

.

The Commercial and Financial Chronicle

general corporate purposes. Office—2300 Shames
Westbury, N. Y. Underwriter—Mortimer B. Burn-

For

I'Dnr* WW MMKMMMM

(1207)

debentures will have the benefit of

new

a

Union

sinking fund,

Drive

beginning in

Co., Inc., New York, N. Y.
Inc. (3/28-4/1)
Feu. u iucu
buuica oi common stock, of which
200,000 shares will be sold for the company's account
and the remaining 14,500 snares will be oiiered lor ine

of the debentures prior to maturity. Other than
through
the sinking fund, tne debentures will not be redeemable

side &

Missile Electronics,

.

ment.

drawn

•

stock

Employees Trademart, Inc.

To

Pa., and New York City.
Offering—Expected in late April.

writer—Frank Edenfield & Co.,

Miami, Fla.

®

;

200,000

NAFI Corp.

■4r

Nu-Era

Corp.

Nov. 3u liiea

2V2

tories

are

of

to

and

indebtedness

mufflers.

side &

The

and

Office

increase

—

342

inven¬

South

stock reserved for issuance to key
employees pursuant to options. Price—To be supplied
by amendment. Proceeds — To be used to retire bank
loans. Underwriter—Milton D. Blauner & Co.. Inc., New;

Price—$2 per share. Proceeds—To retire bank
loans and for investment purposes. Office—513 Interna¬
tional Trade Mart, New Orleans. La.
Underwriter —

cents.

common

of

bank loans, and the balance will be
aries and used by them to finance

loaned to subsidi¬

„

Information Meeting-

(letter of notification) 100*000 shares of com¬
mon
stock
(par one cent). Price—$3 per share. Pro¬
ceeds— For general corporate purposes.
Office — 410
Livingston Avenue, North Babylon, N. Y. Underwriter
—Fund Planning Inc., New York, N. Y.
I

•

11

(John J.)

Inc.

Nesbitt,

(4/11-22)

&

120,000 shares of common

Weeks, New York.

it New Jersey Aluminum Extrusion Co., Inc.
10 filed 110,000 shares of class A capital stock,
of which 50,000 shares will be issued by the company
and 60,000 shares are outstanding and will be offered
by the holders thereof. Price—To be supplied by amend¬
ment. Proceeds—To be added to the general funds of
March

the company and be

Laird

available for general corporate pur¬
Brunswick, N; J. Underwriter —

Office—-New

poses.

&

Corp.,

Company

York and Wilmington,

New

Del.
•

(3/29)
Feb. 29 filed $50,000,000 of general mortgage bonds, due
April 1, 1990. Proceeds—To be used to pay short-term
Niagara Mohawk Power Co.

bank loans incurred to meet

estimates its

construction costs. Company

construction

1960

program

(including that

subsidiaries) will require $100,000,000. Underwriter
be determined by competitive bidding. Probable
bidders: Halsey, Stuart
& Co. Inc.; The First Boston
Corp.; Morgan Stanley & Co. Office — Syracuse, N. Y.
Information Meeting—Scheduled for March 24 at 11:00
of its

—To

a.m.

way,

(EST) at the Marine Midland Trust Co.-, 120 Broad¬
New York. Bids—To be received up to 11:00 a.m.

(EST)

at

1840, 15 Broad St., New York

room

City, on

March 29.

• Normandy

Oil

&

Gas,

Inc.

March 7

(letter of notification) 100,000 shares of com¬
stock (par 10 cents). Price—$3 per share. Proceeds
v-For expenses for developing and operating oil and
gas properties. Office — 620 Oil & Gas Bldg., Wichita
Falls, Tex. Underwriter—None.
• North
March

Central

Co.

of common stock.
The
142;,860 shares for cash sale
at $7 per share. Additional shares (amount unspecified)
are to be offered in
exchange for outstanding shares of
North Central Life Insurance Co., of St. Paul.
The rate
of exchange is to be supplied by amendment. Proceeds
—To be added to the general funds of the company.
Office—335 Minnesota St., St. Paul, Minn. Underwriter
11

filed

420,945

company proposes

—None.
Nova

March

shares

to offer

Scotia

(Province of)

(Canada)

—

fund de¬
bentures, dated April 1, 1960 and due April 1, 1980. The
15

filed

$10,009,000 of 20-year sinking


http://fraser.stlouisfed.org/
fC*—'
Federal Reserve Bank of St. Louis
■

.-

1

I^v

J*!?**

Co., Inc., New York, N. Y.
Precision

Circuits,

Inc. (4/11-15)
$250,000 of convertible subordinated de¬
bentures, due April 1, 1970, and 37,500 shares of common

March

filed

7

stock

(par 20 cents) to be oiiered in units consisting of
$100 debenture and 15 common shares. Price—$150

one

unit. Proceeds—For equipping of new facilities, and
Oifice—705 South Fulton
Avenue, Mount Vernon, N. Y. Underwriter—Myron A.

per

for general corporate purposes.

Lomasney & Co., New York.
•

Public Service Co. of New Mexico
2

(3/21)

filed

which

the

rate

of

one

new

share

for

each

shares

20

held,

of $2,000,000, and working capital. Office—819
Building, Albuquerque, N. Mex. UnderwriterAllen & Co., New York.

amount

Simms

it Puget Sound

Power & Light Co. (4/20)
$20,000,000 of iirst mortgage bonds due
1990.
Proceeds—To be applied to the payment of a
$15,000,000 3% promissory note due May 1, 1960, and

March

writer—None.

bidding. Probable bidders: Halsey, Stuart & Co. Inc. and
Lehman Brothers (jointly); Stone & Webster Securities
Corp., Smith, Barney & Co. and The First Boston Corp.
(jointly); Merrill Lynch, Pierce, Fenner & Smith Inc.
Bids—Expected to be received on April 20 at 12 noon.
Information Meeting—Scheduled for April 14 at 11 a.m.

-'Pacific Gold, Inc.
Dec.

(letter of notification) 75,000 shares of common
par ($1 per share).
Proceeds —Foi

9

Price —At

I stock.

Office—404 Mining Exchange Build¬

ing, Colorado Springs, Colo.
& Co., Denver,
•

8

filed

100,000

shares

of class A

common

stock.

Office—1212 West 26th
Underwriter—Frank Karasik &

ing capital for a new subsidiary.

St., Vancouver, Wash.
Co., Inc.

er.

Co.

,

24

Antonio, Texas. Un¬
G. Edwards & Sons, and Newhard, Cook

Office—312 Pearl Parkway, San

derwriters—A.

& Co., both of St. Louis, Mo. and
Pancoast, San Antonio, Texas.

Dewar, Robertson &

^-Pennsylvania Electric Co. (5/9)
10 filed $12,000,000 of first mortgage bonds, due
1990.
Proceeds—To be applied to the company's 1960
construction
program,
or
to partially reimburse its
treasury for previous expenditures for that purpose.
Office—222 Levergood St., Johnstown, Pa. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Co., Eastman Dillon, Union Securities & Co., Merrill
Lynch, Pierce, Fenner & Smith Inc. and White, Weld &
Co. (jointly); The First Boston Corp.; Harriman Ripley
& Co. Inc. and Blyth & Co., Inc.
(jointly); Equitable
Securities Corp. Bids—Expected May 9 at 12 noon.
March

Electronics Corp.

Pentron

(3/22-23)

250,000 shares of common stock (par $1).
Price—$3 per share. Proceeds — $115,000 for payment
in full of outstanding 6% sinking fund debentures, plant
Feb.

filed

4

renovation,

new

equipment,

and

the

balance

to

the

general fund. Office—777 So. Tripp Ave., Chicago, 111.
Underwriter—Stanley Heller & Co., of New York City.
•

Phillips

Developments, Inc. (3/22-25)
shares of common stock

21

filed 400,000

Price—To

Calif.

be

Underwriters—Allen & Co., Bear, Stearns &

and Sutro Bros. &
•

Co.,

Co., all of New York City.

Corp.

120,000 shares of class A stock. Price—$5
Proceeds — To repay a bank loan, and for
working capital. Office—300 Jelliff Ave., Newark, N. J.
Underwriter—Amos Treat &

Co., Inc., New York.

Of¬

fering—Expected in April.
•

Realty Equities Corp.
2• filed 150,000 shares of common stock.
Price—
per share.
Proceeds—For general corporate pur¬
poses.
Office—New York City.
Underwriter—Sutro
Bros. & Co., also
of_New York City. Offering—Expected
mjsarly" April.

Feb.

(par 10 cents). Price—$4 per share.
Proceeds—
tooling and machinery of manufacturing plant, in¬

stock

ventory, advertising and

working capital.

Office

•

Remco

Industries,

(3/23)
outstanding shares of common
(par $2). Proceeds—To selling stockholders. Office
—113 N. 13th St., Newark. N. J. Underwriter—Paine,
Webber, Jackson & Curtis, New York.
Feb.

19

filed

Inc.

100,000

stock

it Renner, Incorporated
March 10 filed 75,000 shares of common sock (par 50
cents). Price—$4 per share. Proceeds—For general cor¬

including

porate purposes,
indebtedness.

Reserve
Feb.

stock

ate

a

of short-term

the reduction

Office—1530

Underwriter—Stroud

Pa.

&

Lombard

St.,

Philadelphia,

Co., Inc., .Philadelphia, Pa.

Finance Corp.

4

(letter of notification) 135,000 shares of common
(par $1). Price—$2 per share. Proceeds—To oper¬
finance business. Office—Suite 531 Guaranty Bank

Building, Denver, Colo. Underwriter
Stocks, Inc., Denver, Colo.

—

Life Insurance
.

Inc.
March 9 (letter of notification) 75,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For ex¬
penses in developing oil and gas properties. Office—130
Las Vegas Blvd. South, Las Vegas, Nev. Underwriter—•
it Rock-Oil

Co.,

None.
•

St.

Feb.

Regis Paper Co. (3/31)
filed 306,787 shares of its common stock, to be

26

mon
on

in

exchange for the outstanding shares of com¬

stock of The Creamery

the

basis

of

1.02

Package Manufacturing Co.

shares of St. Regis for each share

Creamery. Office—150 E. 42nd St., New York City.
Dealer-Managers—White, Weld & Co., and A. G. Becker
of

Note—This statement is ex^
about March 31.
• San Diego Imperial Corp.
(3/29-30)
Feb. 24 filed $5,000,000 of subordinated convertible de¬
bentures, due Apr. 1, 1975, and 728,531 shares of common
&

Co., both of New York.

pected to become effective

Pidgeon (Walter) Steel Products, Inc.
9 (letter of notification) 75,000 shares of common

For

Lamp

filed

10

share.

per

offered

(par $1).
supplied by amendment. Proceeds—For
property development, possible acquisitions, and work¬
ing capital. Office — 1111 West Foothill Blvd., Azusa,

Dec.

—

$5.25

(letter of notification) 15,000 shares of capital
stock (par SI) at a price not to exceed $20 per share.
Proceeds—To estate of J. H. Bentzen, selling stockhold¬

Feb.

.

pected to aggregate $10,50.0,000 at the time of the bond,
Underwriter
To be determined by competitive

Radiant

Price—$4.50 per share. Proceeds—For reduction of in¬
debtedness; for working capital; for establishment of
three additional stores; and to provide additional work¬

it Pearl Brewing

filed

sale.

Feb.

(4/25-29)

Pacific Pane. Co.

Feb.

Underwriter—Birkenmayer

15

the balance to the payment of
outstanding bank loans
incurred for construction purposes, which loans are ex¬

Colo.

Feb.

,

Fibers, Inc.

notification) 3,000 shares of common
stock (par $1) and 300 shares of preie^r^4 stock J par
$100) to be offered in units consisting of 10 shares of
preferred stock and 100 shares of common stock. Price—
$1,190 per unit. Proceeds—For equipment and inven¬
tory, leasehold improvements and working capital. Office
---225 Santa Monica Blvd., Santa Monica, Calif.
Under¬

•

mon

Plainfieid,

Co., New York.

borrowings, will be applied toward the company's 1960
program, for other corporate purposes in¬
cluding the repayment of a short-term bank loan in the

IVIedicaiTResearch/lnc.

-mining expenses.

stock, of which
40,000 shares will be sold for the company's account
while 80,000 shares will be sold for the holders thereof..
Price—To be supplied by amendment.
Proceeds—For
increase of working capital. Office — State Road &
Rhawn St., Philadelphia, Pa. Underwriter—Hornblower
March 7 filed

Pacific Coast

Street,

construction

March 8 (letter of

C National Lawnservice Corp.
Jan.

(4/1-8)

rities, Inc., New York, N. Y.
it

Seventh

18

at

(letter of notification) 300,000 shares of common
stcok (par 10 cents).
Price—$1 per share. Proceeds—
For purchase of equipment, raw materials and working
eaiptal. Office—622 E. Glenolden Ave., Glenolden, Pa.
Underwriters—Jacey Securities Co., and First City Secu¬

program.

April 11 up to 11:30 a.m.: (EST).
April 7 at 11:00 a.m.

Inc.

West

rights to expire in April. The remaining 5,000 shares will
be offered to employees of the
company. Price — To be
supplied by amendment. Proceeds—Together with bank

Feb. 29

in part their 1960

Office—30 Rockefeller Plaza,
New York City.
Underwriter — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co.; Eastman Dillon, Union
Securities & Co.; stone & Webster Securities Corp.; The
First Boston Corp.
Bids—Expected to be received on
construction

Pacemaker Boat Trailer Co.,

•

each

102,229 shares of common stock (par $5)
97,229 shares will be offered for subscription
by holders of the company's outstanding common stock

March 22.

to

(4/11)
sinking fund debentures,
due 1985. Proceeds—Net proceeds of the sale of the de¬
bentures will be used in part to prepay $10,800,000 of
$18,000,000

filed

2

for

Price—To

by amendment. Proceeds—For construction

Office—120

-

of

The SEC

Orleans, La.

held; rights expire April 14.

Underwriter—W. C. Langley &

March

"stop order" hearing has been continued from Feb. 25

National Fuel Gas Corp.

•

March

Investment Co., Inc., New

Assets

Note—This statement has been withdrawn.

York.

N. J.

•

.

of

program.

&

$15,000 for expenses, a
pany's geenrax funas. Office—dZI 2ard Ave., Oakland,; $.75 per share selling commission on the 200,000 shares,
Calif. Underwriter—Shields & Co., New YorK.// ;
,
V; comprising the public offering, and the privilege of pur-..
• Narda Microwave Corp.
chasing 37,500 shares of the common stock at $.10 per
share..: The 37,500 shares thus far unaccounted for are
June 16 filed 50,000 shares ;Of common stock (par 10
to be sold to John L. Appelbaum at $.10 per share in
cents) and 50,000 warrants to be offered in units, con¬
consideration of certain services rendered.
sisting of one share of common slock * with attached
Warrant entitling the holder to purchase one additional
Oil, Gas & Minerals, Inc.
share.
The statement also includes an additional 10.OQ0
April 2 filed 260,000 shares of common stock (par 35
shares

stock, to be of¬
of record

(letter of notification) 85,714 shares of common
(par 40 cents). Price—$3.50 per share. Proceeds
—For general corporate purposes. Office — Whitehead
Ave., South River, N. J. Underwriter—Arnold Malkan

receive

will

common

stock

Co., Inc., on an "all or nothing best efforts" basis.

underwriter

shares then

Jan.

St.,
Underwriter—Mortimer B. Burn-

Rochester, Michigan.

68,b76 shares of

Plastic &

(3/28-4/1)

reduce

gears

filed

be supplied

'

2/5,0uu snares of common stock, of which
be publicly offered. Price—$3.75 per share.

Proceeds—To

200,000 shares of capital stock... Price—To
be supplied by amendment. Proceeds — To repay bank
loan incurred in connection with acquisition of ChrisCraft Corp. and the balance to be added to the com¬

March 14 filed

19

fered for subscription by
comjnon stockholders
March 31, 1960, at the rate of one new share

Leonard & Lynch, Pittsburgh,

current liabilities and other debts and for
capital.
Office —1055 Hialeah, Fla. Under-

repay

working

Fiainfield-Umon Wafer Co.

Feb.

(no par)

—

mori

—

—

★ IHttsburgrt Self-Service Associates
March 16 tned $720,000 of units of
partnership interests
in associates.
Office—New York City.

supplied by amendment. Proceeds—For equipment and 1
expansion. Office
Apollo, Pa. Underwriter —• Moore,

25 (letter of notification)'200,000 shares of com-,
stock (par $1).* Price—$1.50 per share. Proceeds—

Feb.

common

To be supplied by amendment.
To selling stockholders.
Office — Buffalo,
Underwriter—Doolittle & Co., Buffalo 2, N. Y.

N. Y.

of which 4,980 are to be offered to warrant holders and
the remainder is to be offered publicly. Price—To be

Miami, Fla.

(par $2). Price

Proceeds

•

Nuclear Materials & Equipment Corp.
2 filed 45,000 shares of common stock

Mbrch

underwriter.

as

* Pierce & Stevens Chemical Corp.
March 9 filed
175,000 shares of outstanding

Underwriters—Halsey, Stuart & Co.
Inc., New York, and Royal Securities Corp. Ltd., Mon¬
treal, Quebec, Can. Offering—Expected in early April.

(3/21-25)

Avenue, Bala-Cynwyd, Pa.
Underwriter—Heft,
Infante, Inc., Rockvilie Centre, N. Y., has with¬

Kahn &

94.5%

struction program.

13

Mutuai

retire

Commission to be applied to the repayment of
borrowings incurred in connection with its con¬

bank

filed 2oo,u0u auiuea >of common stock (par 50
cents). Price—$4 per share.- Proceeds—For debt reduc¬
tion and working, capital. Office—Sarasota, Fla. Under¬
••

to

Power

certain selling stockholders. Price—$3 per
Proceeds—For general corporate purposes. Office
—89 West 3rd St., New York City. Underwriter—Pleas¬
ant Securities Co. of Newark, N. J.

writer—Plymouth Bond & Share Corp.,

is calculated

tures; the balance will be advanced to the Nova Scotia

share.

-Mcbiiife Corp.

which

to April 1, 1970. Price—To be supplied by amend¬
Proceeds—To the refunding of Provincial deben¬

prior

account of

Jan.

1962,

39

—

10

Continued

on

page

40

"

(

*

♦

H

't

40

The Commercial and Financial Chronicle

(1208)

.

Thursday; March 17, 1960

„

.

I

.

I

Continued from page

Price—To

stock

39

supplied by amendment. Proceeds
of selling stockholders, 128,531 shares,

be

—For the account

600,000 shares, to reduce indebted¬
Office—San Diego, Calif. Un¬

and for the company,

for investment.

and

ness

derwriters—White, Weld & Co., New York City, and J.
A. Hogle &
'

'

4

& Power Co.

Electric

\ 'v'

March 2 filed

187,950 shares of common stock

(par $5).
to offer 87,950 shares of its com¬

The company proposes

■

.//

',!'. S-

.

to

for

each

The

mon

sold

be

)

:t

•

j,.'!';f
.<t
1

>

the

of

holders

thereof.

supplied by amendment. Proceeds—To

re¬

a

i
i

Seaboard

Plywood

Lumber Corp.

&

(3/28-4/4)

filed

$300,000 of 6%% subordinated convertible
debentures, due April 1, 1970, and 30,000 shares of com¬

stock, to be offered in units, each unit consists of
principal amount of debentures and 50 shares of
common stock (par $1). Price—To be supplied by amend¬
mon

i)

Mi
1

•

.»

;j(i'
f'ii

S ij
!<

«

Proceeds—To

ment.

retire

term

a

bank

loan,

and

Seeburg Corp.
Feb. 29 filed $526,000 of 4% promissory notes and 1,200,000 shares of common stock. The notes and 614,242
shares of the common stock are outstanding and may
be sold by the present holders thereof, who are not
company
officials.
The
includes
registration
61,000
shares which are reserved by contract for delivery in
connection with past acquisitions.
The remaining 524,758
shares may be issued from time to time in the acquisition
businesses.

Office—1500 North Dayton

St.,

Chicago, 111.

f

jfji

M

;

f-r
\ fi ;f, •
'W }■

■

I
I

Gas

&

! V

hp
'

A
•lii'.

of

one

new

share

additional

»

*

<*. i'

Ti

'Vp

Sierra

Feb.

23

fered

five shares

capital;

the

held, rights

to

finance

filed

49,714 shares of common stock being of¬
subscription by holders of the outstanding

for

of

record

March

per

14

the

on

basis

of

held, rights to expire

share.

Proceeds

To

—

be

one

on

new

April 4.

applied

it Sire Plan of Normandy Isle, Inc.
March 9 filed $225,000 of
10-year 7%
shares

of

$3.50

cumulative,

pating preferred stock
unit

consisting of

to

Agent—Stone &

St., Boston, Mass.

4,500

debentures

and

non-callable, partici¬

(par $5), to be offered
one $50 debenture and

ferred share.

in

units,

one

'if

pre¬

Price—$100 per unit.
Proceeds
To fi¬
acquisition. Office—Ingraham Bldg., Miami, Fla.
Underwriter—Sire Plan Portfolios, Inc., New York.
—

nance

Industries, Inc.
(letter of notification) 50,000 shares of common
(no par).
Price—$5 per share.
Proceeds—For
working capital. Office—c/o A. M. Hubman, 4061 Constock

over

Road, University Heights, Ohio.
Gaither & Co., Inc.,
Cleveland, Ohio.
•

South

Dec.

11

Bay Industries, Inc.

filed 210,000

Underwriter—

(3/18-21)

share.

—

I

J?

it Southampton Lumber
Corp.
March
10
(letter
of
notification)
amount

of

first

mortgage

an

unannounced

bonds.

Price—$500 per bond
$1,000 per bond. Proceeds—For general
corporate
purposes.
Office
Southampton, N. Y. Underwriter—
and

—

None.

ill

Southwest Forest

end

Industries, Inc.
an

aggregate of $13,500,000
debentures, due 1985, and com¬

stock,
such

to

be

offered

common

amendment.

in

stock.

new

Bank

plant.

units

of

Price—To

Proceeds—For

construtcion of

working

such

debentures

be

supplied: by
capital and the

Off ice— 444-First National
Ariz.

Building, Phoenix,
Underwriter—White,
Weld & Co., New York
City. Offering—Expected in late

March.

t

its operatons

from

come

it Southwestern Investment Co. (3/29)
March 10 filed $10,000,000 of senior
notes due March 1
1975, $3,000,000 of capital notes, due March
1, 1975 (with

IS

http://fraser.stlouisfed.org/
tv <:
Federal Reserve Bank of St. Louis

until such time as it has an in¬
its loans and investments. Office—650 South

Spring St., Los Angeles, Calif. Underwriter—William R.
Staats & Co., Los
Angeles, Calif.
•

Standard

March

7

Products,-Inc.

296,460

shares

of

(4/12)

class

be

York.

•

Standard

Feb.

(3/23)

210,000 shares of

Stelling Development Corp.
(letter of notification) 300,000 shares of common
(par one cent). Price—$i per share. Proceeds—
For mortgages, land,
paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp.,
Washington, D. C.
June 8
stock

Sierilon

Corp.

(4/4-8)
100,000 shares of common stock. Price—
supplied by amendment. Proceeds—For general
corporate purposes.
Office
500
Northland
19

Avenue,
Underwriter—Shields & Co., New York.
—

Buffalo, N. Y.

it Straza Industries

porate purposes and working capital. Office—790 Green¬
field Drive, El
Cajon, Calif. Underwriter—J. A.
&

Hogle

Co., of Salt Lake City and New York. Offering—Ex¬
in April/

Sun

Electronics Systems, Inc. (4/11-15)150,000 shares of class A common stock.
Price—$3 per share.
Proceeds—For general corporate
purposes.
Office—880 Bonifant Street, Silver Spring,
Md.

Underwriter—A.

it TeEtronics,
March

8

Co.,

New

York

*

City.

Inc.

(letter

notification)

of

in units

be offered

and

&

325 shares

class

of

A

stock and 32,500 shares of class B common stock

common

to

Brod

T.

consisting of

share of class A

one

100 shares of class B.

Price—At par ($1 per share).
purchase equipment and for working
capital. Office—277 Main St., Nashua, N. H. Underwriter
Proceeds

To

—

—None.

Tenax, Inc.
Feb.

16

(3/21-25)

filed

150,000 shares of common stock (par 10
Price—$4 per share.
Proceeds—For expansion

issuer's

freezer

and

sale

food

Park

Avenue, New York City.
Lomasney, New York City.
Thermal
Feb.

26

business.

Office—375

Underwriter—Myron A.

Industries of FEorida,

Inc. (3/18-22)
120,000 shares of common stock (par $1).
per
share.
Proceeds—To be added to the

filed

general

reserves.

derwriter—Peter Morgan &

Office—Miami,

Fla.

Un¬

Co., New York.

Tip Top Products Co.

|

Feb.

11 filed $600,000 of first
mortgage sinking fund
bonds, series B, due December, 1969, (with warrants).
Warrants attached to each $1,000 bond will entitle hold¬
ers

to

purchase 20 shares of class A

initial price of $11
Proceeds

amount.

share.

per

To

—

$420,000

pay

stock

common

Price—100%

at

an

of principal

due

to

Western

Electric Co., Inc.; and the balance for
general corporate
Underwriters—J. Cliff Rahel & Co., Omaha,
Neb. and The First Trust Co. of

purposes.

Lincoln, Neb.

Tool
Feb.

Research

24

filed

Price—To

&

Engineering Corp.

350,000 shares of

be

supplied

by

(4/11-15)
(par $1).

stock

common

amendment.

Proceeds—To

the cash portion of recent acquisitions, and for work¬
capital. Office — Compton Calif. Underwriter —
Shields & Co., New York.

pay

^-Transcontinental

Gas Pipe Line Corp.
(4/20)
filed $35,000,000 of first
mortgage bonds due
800,000 shares of common stock.
Prices—To
be supplied by amendment.
Proceeds—To refund debt
March

1980

14

and

incurred for construction. Office—3100 Travis
St.,

Rubber Co.

26

filed

27

ing

March 14 filed 230,000 shares of
capital stock. Price—To
be supplied by amendment.
Proceeds—For general cor¬

pected

and

Teletray

filed

be

sales

or

Jan.

company's
stock

common

(par $20).
Price—To be supplied by amendment.
Proceeds—To es¬
tate of a selling stockholder.
Office—Bellwood, 111. Un¬
derwriter—Hornblower & Weeks, New York.

•

•

lease

to

Price—$6

Screw Co.

17 filed

executive

manufacturing;.personnel.
development, and the, bal- ;
purchase additional, factory and office
space. Office—188 Webster St., North Tonawanda, N. Y..
Underwriter—C. E. Stoltz & Co., New York,
v

of

A

capital stock.
supplied by amendment.
Proceeds—To
selling stockholders. ^Office—Long Island City, N. Y.
Underwriter—Eastman Dillon, Union Securities &
Co.,
New

panded

and to continue research and
ance

cents).

Motor

filed

Price—To

ton, Tex.

'

filed

Underwriters—White, Weld &

& Webster Securities

$1,000,000 of 6% subordinated debentures
due April
1, 1975, and 100,000 shares of common stock
(no par), to be offered in units of $100 of debentures

Co.

and

Housr
Stone

Jan. 25

and

stock

10

shares

of

stock.

common

Price—$100 per unit.
Proceeds—To be used in reorganization.
Office—366
Fairview Ave.,
Barberton, Ohio. Underwriter—McDon¬
ald & Co., Cleveland, Ohio.
Sunair

Electronics, Inc.

Price—$3.00

per

share.

stock

common

Proceeds—For

(par $.10).

new

equipment,
construction, and working capital. Office
Broward
County International Airport, Ft.
Lauderdale, Fla. Un¬
derwriter—Frank Karasik &
Co., Inc., of New York City.
Supermarket Service, Inc.
—

Oct.

14

(letter of notification) 9,000 shares of common
(no par). Price—$11.50 per share. Proceeds—For

stock

working capital.

Office
Underwriter
E.

Conn.

103

—

—

T.

E.

Main

Andrews

&

Conn.

Supronics Corp.
29 filed 120,000 shares of

$6

share.

per

St., Plainville,
Co., Hartford,

Proceeds—$50,000

to

stock.

reduce

Price—

short-term

McKenna, and Irving Weiss & Co., all of New York City,
and
Bruno-Lenchner, Inc., Pittsburgh, Pa. Offering•

in

April.

Sutton

Feb. 9
stock

For

Leasing Corp. (4/1)
(letter of notification) 100,000 shares of common
(par 25 cents). Price—$3 per share. Proceeds—

general corporate purposes.
Office—9 Rockefeller
Plaza, New York 20, N. Y. Underwriter—T. M. Kirsch

—

—

•

Tayco Developments,

ten-seventy-fifths of
per

Transworld

Equipment Corp. (3/28-4/1)
(letter of notification) 139,832 shares of common
(par 10 cents).
Price—$2 per share. - Proceeds—•
general corporate purposes.
Office—119 W. 26th

For

Street, New York 1, N. Y. Underwriter—Michael
82 Beaver Street, New York City.

Inc.

a

Field-

man,

Tri-State

Petroleum

Corp.

...

Nov. 12

(letter of notification) 199,900 shares of common
(par five cents). Price—$1.50 per share. Proceeds

stock
—For

1403

expenses

G.

Daniel

Daggett
has

for drilling and

been

producing oil. Office—
Bldg., Erie, Pa. Underwriter—
Newark,, N. J. The statement

Baldwin

Securities

Inc.,

withdrawn.

r

.

it Triumph Pool, Inc.
•".
March 3 (letter of
notification)
stock

mon

150,000 shares of com-Price—$2 per share. Proceeds
land and equipment and
contracts,

(par 10 cents).

—For balance due

New

on

York

5, N. Y.

(3/21-25)

common

stock

to

be offered

stockholders at the rate of
share for each share held. Price

share, with rights to expire

14 days from
offering date.
Proceeds — For capital and
to
secure
additional patents on present
inventions, and to continue
and expand research and
development work in the field
of

liquid compressibility devices and other areas. Office
St., North Tonawanda, N. Y, Underwriter
—C. E. Stoltz &
Co., New York.

-—'188 Webster

•

Taylor Dev.ces, Inc. (3/121-25)
Dec. 23 filed 18,705 shares of common
stock to be of¬
fered for subscription by common
stockholders on the

Underwriter—None.

Tungsten Mountain Mining Co.
Feb. 15 (letter of
notification) 50,000 shares of
stock

(par

$1)

stockholders

to

on

be

offered

the basis of

first

for

one new

shares held.

common

subscription

by

share for each eight

Price—$2 per share. Proceeds—For mining
operations. Office—511 Securities Bldg.,
Seattle, Wash.
Underwriter—H. P. Pratt & Co.,

Inc., Seattle, Wash.
it Union Financial Corp. (4/25)
11 filed 325,000 shares of common stock
($1 par).

March

Price—To

be supplied
by amendment.
gether with bank loan, will be used to

i000

balance

balance

on

will

be

Superior Ave.,

Systron-Donner Corp. (3/30)
Feb. 25 filed
442,700 shares of capital stock (no par).
Price
To be supplied
by amendment. Proceeds
To
selling stockholder, W. K.
Rosenberry.
Office — 95,0
Galindo St.,
Concord, Calif. Underwriter—White, Weld
& Co., New York.
Dec. 23 filed 5,390 shares of
for subscription by common

Corp., both of New York.

mortgage payments for one year, notes and accountspayable and working capital. Office — 15 William
St.,
common

bank loans, and the balance to be used for
general cor¬
porate purposes, including expanding the business. Of¬
fice—224 Washington
Street, Perth Amboy, N. J. Un¬
derwriters—Standard Securities Corp.,
Herzig, Farber &

Expected

•

•

(3/21-25)

Dec. 28 filed 200,000 shares of

—$28.75

Jan. 29 filed not to exceed
of subordinated income
mon

dental to

Co., New York, N. Y.

shares of class A stock.

Price—$5
Proceeds—To pay off bank loans, purchase
machinery, and add to working capital. Office
42
Broadway, New York City. Underwriter—Amos Treat &
Co., Inc., of New York City, on a "best efforts"
basis.
per

Office

may also use a portion
the costs and expenditures inci¬

pay

Jan.

Solon

',

common

10th

of the proceeds to

1

Jan. 26

I®

25

to be offered in units of five shares at
$1,000 per share.
Proceeds—For loans to and the purchase of securities
of certain business concerns. It

the

Pacific Power Co.

payment of loans. Office—Reno, Nev.
Webster Service
Corp., 49 Federal

each

'1

each

initial payments on a tract of land to be used for
possible
plant construction, and the balance for general corporate
purposes. Office—822 North Henry St.,
Alexandria, Va. |
Underwriter—None.

Price—$33.50

m

for

working

share for each 15 then

•;!
M'

stock (par $1) to be

facilities;

provide

common

If'

common

purchase

Spring Street Capital Co.
filed 3,000 shares of common, stock (par $100)

Feb.

to expire in April. Price—To be
supplied by amendment.
Proceeds—To retire bank note indebtedness; for the
pur¬
chase of additional machinery,
equipment and

•'i u

W:

(no par).

offered for subscription by common stockholders at
rate

•

i.i

stock

Corp. (4/4)
Dec. 24 filed 100,000 shares of common stock
(par 10
cents).
Price—$3 per share.
Proceeds—For drilling.
Office—Erie, Pa. Underwriter—Edgar B. Hunt Co., New
York City.

to

i.y?-

common

Oil

Servonics, Inc.
Feb. 25 filed 76,600 shares of

1} !

V

Seneca

to

March 1

To

Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Office—3431 South La Cienaga Blvd.,
Los Angeles, Calif.
Underwriter—Hemphill, Noyes & Co.,
New York. Offering—Expected in
early April.
•

warrants

St., Amarillo, Tex. Underwriters—White,
Weld & Co., New York;
Schneider, jBernet & Hickman,
Inc., Dallas, Tex.; and The First Trust Co. of Lincoln,
Lincoln, Neb.

Feb.

See's

Candy Shops, Inc.
Feb. 26 filed 250,832 shares of

receive

for

working capital. Office—17 Bridge St., Watertown, Mass.
Underwriter—Peter Morgan & Co., New York.

of additional

I; •'

E.

—

v.

i

■

29,

April 18. 100,000 of the
presently outstanding, and

on

are

will

new

$50,0

vfl
i

one

March

on

portion of bank loans made for construction pur¬
Office—27 West Bay St., Savannah, Ga. Under¬
The First Boston Corp. and Stone & Webster
Securities Corp., Both of New York.
pay

Feb. 25
it

record

poses.

writers

j

of

accounts

the

for

Price—To be

V)/

stock

common

the basis of

on

held

shares

13

offer will expire

shares of
will

stockholders

its

stock

share
1960.

V.fl-,

chaser

shares. Price—To be supplied by amendment.
Proceeds
—To be added to the general funds of the
company and
will be available for general
corporate
—205

<>'

%

With each $1,000 of capital notes the
pur¬

the warrants.

purposes.

Co., Salt Lake City, Utah.

Savannah

'

*.

.

attached warrants for the purchase of 75,000 common
shares), and the 75J)00 shares issuable upon exercise of

Weld

an

outstanding

Proceeds—To¬
repay

a

$6,075,-

bank

loan, and
the
added to working capital.
Office—232
Cleveland, Ohio. Underwriters—White,

& Co. Inc.,
Chicago and New York;- The Ohio
Company, Columbus, Ohio; and Sanders & Co., Dallas,
Texas. Offering—Expected in
April.

it United
March

fered

11

American

Life

Insurance'Co.

filed

50,000 shares of capital stock,, to be of¬
subscription by holders of outstanding stock

for

in the ratio of one new share for each five
shares held
Price—To be supplied by amendment. Proceeds—To in¬
crease capital and
surplus. Office—1717 California

St.,;

Denver, Colo.
•

United

Underwriter—None.

Components, Inc.-(4/18-22)

March 2 filed

10,000 shares

110,000 shares of
to

are

be

offered

common

to

stock, of which
Leighton, a

Sheldon

director, at $2.50 per share and the remainder is to be
publicly offered. Price—To be supplied by amendment.
Proceeds

—

For

new

equipment,-advertising, and other
Office-^-Orange,- N. J. Un¬
derwriters-Darius, Inc^ NewYork/City::o,,.; • •*.. *
L >.
general
•

U.

corporate purposes'.

S. Plywood

Corp.

(4/13);

March 7 filed $25,000,000 of
1985. Price—To be

-

sinking fund debentures due

basis of six-tenths of one share for each
share held. Price
—$28.75 per share, with rights to
expire 14 days from
offering date. ' Proceeds
To
repay
a "short- term

To repay bank loans and for

loan, for additional working capital, and to establish

New

—

ex¬

supplied by amendment.

Proceeds—

general corporate purposes.
Underwriter—Eastman, Dillon; Union Securities & Co.*,
York.

Office—55 W. 44th S-treet,- New-. York

Cityr

h
1

w

Volume

Number 5934

191

.

.

.

The Commercial and Financial Chronicle

(1209)

Universal-Cyclops
3/25) .v.*

■

March

filed

1

Steel

Corp.,

Bridgeville,

shares of

200,000
added

be

the

to

common

capital stock

company's

current

Pro¬
funds.

Underwriter—A. G. Becker & Co., Inc., New York and
Chicago.
Universal

Fabricator Inc.

general corporate purposes. Office—1827 Boone Avenue,
Bronx 10, N. Y.
Underwriter—S. Schramm & Co., Inc.,
York, N. Y.

New

Universal

•

Transistor

Products

Corp.

(3/21-25)

(letter of notification) 150,000 shares of com¬
mon
stock (par 10 cents). Price—$2 per share.
Pro¬
ceeds— For
general corporate purposes.
Office — 36
18

Dec.

Color Television System, Inc.
(letter of notification) 86,403 shares of common
stock
(par $1).
Price—$3 per share.
Proceeds—For
general corporate purposes.
Office—151 Odell Avenue,
Yonkers, N. Y.
Underwriter—Investment Brokers of
N. J., Inc., 844 Broad
Street, Newark, N. J.

Wynn Pharmacal Corp.
29 (letter of notification) 4,380 shares of class B
stock
(par 10 cents). Price—$2.50 per share.
Proceeds—To go to selling stockholders.
Office—5051
Lancaster Ave., Philadelphia, Pa. Underwriter—Charles
A. Taggart & Co., Inc., Philadelphia.
Jan.

(letter of notification) 60,000 shares of common
(par $1).
Price — $5 per share.
Proceeds — For

Feb. 29

stock

Wilier

Jan. 29

Price—To be supplied by amendment.

(par $1).
ceeds—To

Pa.

v.-

Sylvester Street, Westbury, L. I., N. Y. Underwriters—
Michael G. Kletz & Co., Inc. and Amos Treat & Co., Inc.,
New York, N. Y.

common

Wyoming Nuclear Corp.
Sept. 11 (letter of notification) 10,000,000 shares of
stock.

mon

(three cents per share). Pro¬
ceeds—For mining expenses. Office—Noble Hotel
Bldg.,
Lander, Wyo. Underwriter—C. A. Benson & Co., Inc.,
Pittsburgh, Pa.
Yuba

Exchange

Stock

York

New

day

preceding the

if Vutcatron Corp.
11 (letter of notification) 100,000 shares of com¬
mon stock
(par $1). Price—$3 per share. Proceeds—To
set up a plant and equipment, to purchase machinery
and equipment, and for working capital. Office — c/o
William L. Berger, 209 Washington St., Boston, Mass.
Underwriter—P. de Rensis & Co., Inc., Boston, Mass.
Wallson

filed

Inc.

Associates,

Prospective Offerings
Acoustica
Feb. 5 it
file

Associates,

reported that this company will probably

was

undetermined amount of

an

Office—Glenwood

common

Landing, L. I., N. Y.

stock in April.

Underwriter—

16

it

reported that the company plans early

was

for

•

Ave., Elizabeth, N. J. Underwriters—Rus¬
and First Broad Street Corp., New York,
Offering—Expected in April.
Manufacturing, Inc.

Waters

(3/21-25)

(letter of notification) 60,000 shares of common
stock (par $1) of which 20,000 shares are to be offered
by Robert A. Waters, President and the balance by the

Proceeds—For working

Price—$5 per share.

company.

Office—533 Boston Post Road, Wayland, Mass.
Co., Inc., Philadelphia, Pa.

capital.

Underwriter—Stroud &
•

Industries

Wells

Corp.

(4/11-15)

.

filed 300,000 shares of common stock and war¬
rants for the purchase of an additional 100,000 shares.
Price
To be supplied by amendment.
Proceeds —
$350,876 will be used to retire certain debts, with the
remainder to be used for construction, equipment, and
Jan.

29

—

working capital.
Office—6505 Wilshire Boulevard, Los
Angeles, Calif.
Underwriter—A. T. Brod & Co., New
York City.
West Branch
Jan.

28

Bell Telephone Co.

filed

1,120 shares of*common stock ($50 par)
$150,000 of 5% convertible subordinated debentures,
due April 1, 1980, being offered to stockholders and

and

employees of record Feb. 5
tures for each 10
offered

the

on

common

of

basis

on

the basis of $500 of deben¬

shares held; the stock is being
one
new
share for each five

shares held, with 1,000 shares being offered to stockhold¬
ers and the remaining 120 shares being offered to em¬

Initial
conversion price is $70 per share.
Prices—For the de¬
bentures, at 100% of principal amount; for the common,
to be supplied by amendment. Proceeds—For equipment
and working capital. Office—31 South Main St., Muncy,
Pa.
Underwriter—Blair & Co., Inc., New York City.
ployees. Rights dates

•

are

March 7 to March 22.

West Penn Electric Co.

$5,000,000

about

of

Western Airlines, Inc.
March 1 filed 200,000 shares of capital stock
be offered for subscription by holders of
shares

of such

stock

of

record

March 30; rights to ex¬

Underwriter — Merrill Lynch, Pierce,
Smith, Inc., New York City.

Angeles, Calif.
&

Western Utilities Corp. (3/21-25)
March 1 filed 125,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
pay recent bank

balance

will

capital.

Office

Calif.

borrowings aggregating $800,000 and the

be
—

used

300

to

into

Securities

Atlanta,

additional working
San Francisco,
Witter & Co., San Francisco
provide

bonds

of

common

Underwriter—Dean

Pa., Office—
Alstyne, Noel & Co.,

company is

contemplating

new

financing, probably in the form of bonds. Under¬
writer—To be determined
by competitve bidding. Prob¬
able bidders:
Halsey, Stuart & Co.
&

Inc.; Morgan Stanley
and W. E. Hutton & Co.
(jointly); Blyth & Co.
First Boston Corp. (jointly); Merrill
Lynch, Pierce,

Co.

and

and Lehman Brothers (jointly);
DiHon, Union Securities & Co., and White,
(jointly).

to

up

it

announced that the company will

was

maximum of 422,030

a

issue
shares, which are
acquisitions by

common

to be used in connection with the recent
the issuer of M.

•

American

March

3

it

F.

Hickey & Co. Inc. of New York City
Brothers, Inc., of Los Angeles.

Graham

and

Bank & Trust Co.

Fletcher National

that

announced

was

the

company is expected
undetermined amount of common stock some¬
April or May.
Underwriter—Kidder, Peabody &
Co., New York City.

time

a

being offered to holders of record March 16 at the rate
one

for each three owned;
rights will
Price—To be set by the directors fol¬

share

new

expire April 4.

lowing the meeting. Proceeds—To increase capital and
surplus. Office—Indianapolis, Ind. Underwriters—Mer¬
rill

an

in

sell

House, Inc., Lansing, IVIIch.

it

was

be

Lynch, Pierce, Fenner & Smith Inc. and Paine, Web¬

of

general

Lansing, Mich. Offering
•

Columbia
11

!

Electronics

of

expected

Underwriter—Michael G. Kletz & Co.,

stock.

common

of New York

about March 15 this
approximately $500,000

on or

file

to

City.

through the sale of first mortgage bonds. Offering—Ex¬

pected during the first half of 1960.
it

10

this

that

Bank

has

called

a

special meeting of stockholders for March 29 to author¬
ize the sale of 256,930

will

be

offered

to

additional shares of stock.

shareholders

of

Stock

March

record

at

29

the rate of one new share for each five shares then held;
rights expire April 19. Proceeds—To increase capital and
surplus. Underwriter—Blyth & Co., Inc., San Francisco,

Calif.

.

'

.

,

.

•

t'

it

16

stock

Proceeds

are

—

expected

For

general

be

to

filed

corporate

within

purposes.

30

days.

Office

Securities

—

Corp.,

York

New

Black

Hills

Feb. 11 it

was

Power

&

Light Co.

announced that the Federal Power

mission has authorized this
issue

2%

100,000 shares of com¬

Pa. Underwriter—Plymouth
City.

Palmyra,

to

that

announced

was

shares

of

Com¬

utility, of Rapid City, S. D.,

stock (par
dividend to its present common holders.
7,727

common

$1) as a
No frac¬

tional shares will be issued, and stockholders will have
the option of buying the additional fractional interest re¬

quired to make full shares,
terests.

1

•

or

to sell their fractional in¬

•

British Columbia Telephone Co.

March

according to W. C. Pitfield, stockholders at
10 meeting voted a new $12,000,000
cumulative redeemable preferred stock

11,

special

issue

of

March
6*4%

(par $10). .Proceeds — For
similarly engaged companies.
Note—This

issue

was

filed

in

acquisition of shares in
Office—Vancouver, B. C.
Canada

and

will

not

be

California

Electric

Power Co.

.

issue

4

it

sale

announced

sell $12,000,000

and

ceeds—To
the

was

that

the

& Smith Inc.,

Consolidated Research & Mfg.
Corp.
16 it was reported that this
firm, founded last
as a Delaware corporation, plans its first
pub¬
lic financing in the form of a common
stock offering
Dec.

August

scheduled for next spring. Business—The
company prospray containers to combat ice,
snow, and fog.
Proceeds—For expansion. Office—1184
Chapel St., New

dues

Haven, Conn. President—Marvin Botwick.
Consumers Power Co.

reported that this company is planning
probably from the sale of first mort¬
gage bonds and debentures. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
&

Co.

and

was

funds

new

Co.

and

Inc.; Morgan Stanley & Co.; White, Weld
& Co. (jointly); First Boston
Corp.
& Co. (jointly).

Shields

Harriman Ripley

Electrada
it

3

Corp.

reported that this company is planning
financing sometime in the Spring. Office — Beverly
Hills, Calif. Underwriter—Bache & Co. of New York
City and Beverly Hills, Calif.
was

Englehard Industries, Inc.
Dec. 2 it

was reported that this
Newark, N. J., corpora¬
might make an announcement concerning a forth¬
coming issue of common stock. Although no confirma¬

tion has been

forthcoming, it is understood that

visited the company in late December.
still believed likely, in the near future.

auditors

Registration

is

ic Ets-Holkin & Galvin
March

early

16 it was reported that the
company is planning
registration of about 220,000 shares of common

stock.

Proceeds—For selling stockholders. Office—San
Francisco, Calif. Underwriter
Van Alstyne,
Noel &
Co., New York. Registration—Imminent.

^Florida

company

plans

of first mortgage bonds.

to

Pro¬

Power

March 10 it

Corp.

was

reported that $25,000,000 of first mort¬
gage bonds will be sold by this utility, possibly in the
fourth quarter of this year. Proceeds — For new con¬
struction and repayment of bank loans. Underwriter—To
be determined by
competitive bidding. Probable bid¬
ders:

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.
and Merrill Lynch, Pierce, Fenner & Smith Inc.
(joint¬
ly); First Boston Corp.; Eastman Dillon, Union Securi¬
ties & Co. and Harriman Ripley & Co.
(jointly); Lehman
Brothers and Blyth & Co. (jointly).
ic Florida

Power

&

Light Co.

March

15 it was reported that the company will need
about $25/100,000 of new money. The nature of the secu¬
rities to be issued has not as yet been determined.

ic Forest City Investment Co.
March 16 it

was reported that a stock
offering is planned.
Underwriter—Bache & Co., New York.

Georgia Power Co.
Dec. 9 it

with

(5/10)

apply the major portion of the proceeds from
repayment of bank loans, which are ex¬

to

(5/5)

that

Me!fri11 Lynch> Pierce, Fenner

tration

offered in the U. S.

March

Inc.

under¬

—

if Beckert Dynamics, Inc.
March

Clifton Ave.,

tion

(3/29)

announced

was

System,
announced

1500

and White, Weld & Co.
(jointly); Morgan Stanley & Co.
Bids—To be received on May 5. In
addition, it has been
announced that further
financing is planned later in

Feb.

if Baltimore Gas & Electric Co.
March 3 it was announced by J. Theodore Wolfe, Presi¬
dent, that the company plans record construction expen¬
ditures of $50,000,000
during 1960, probably financed

Feb.

was

—

Expected in April;

the directors of this
utility have authorized the issuance and sale of
1,400,000
shares of common stock.
Underwriter—To be determined
by competitive bidding. Probable bidders:
Halsey, Stuart

Stuart &

reported that

was

is

company

Gas

it

to raise

Indianapolis Bond & Share Corp. all of Indianapolis,

March 2 it

Office

—

writer to be announced.

and

'

plans to issue and

(par 10 cents). Price

supplied by amendment. Proceeds
To build
coffee houses, establish
commissaries and for

corporate purposes.

March 2 it

Arco

company

common stock

—

chain

ber, Jackson & Curtis, and the First Boston Corp., all of
New York;
City Securities Corp., Collett & Co., Inc.
Ind.

announced

100,000 shares of

•—To

the year.

bapJ^hg£j called

special meeting for March 17 to authorize 226,604 addi¬
tional shares of its capital stock
(par $10) which are
of

^ ^ was reP°rted that this

to file

March

^ American Cement Co.

a

Whitmoyer Laboratories, Inc. (3/21-25)
Jan. 28 filed 85,000 shares of common stock and $500,000
of 6% subordinated debentures, due 1977, with warrants
for the purchase of
10,000 additional common shares at
$5 per share.
Price — For the debentures,
100% of
principal amount; for the 85,000 common shares, $6
per share.
Proceeds—For general corporate purposes,
including the reduction of indebtedness, sales promo¬
tion, and equipment.
Office—Myerstown, Pa.
Under¬
writer—Hallowell, Sulzberger, Jenks, Kirkland & Co.,




by

Montgomery St.,

and New York.

Philadelphia, Pa.

held

Philadelphia,

Corp.,

Underwriter—Van

Ga.

now

New York. Registration—Imminent.

mon

(par $1), to
outstanding

pire on April 18. Price—To be supplied by amendment.
Proceeds—For general corporate purposes.
Office—Los
Fenner

be

Bank of California

stock. Proceeds
additional common
stock from the Monangahela Power Co., to retire West
Penn Traction Co. bonds maturing June 1, and for gen¬
eral corporate purposes.
Underwriters— To be deter¬
mined by competitive bidding.
Probable bidders: Carl
M. Loeb, Rhoades & Co., W. C. Langley & Co., and
Lehman Brothers.
Bids—Expected to be received on
April 12, up to 3:45 p.m. (EST).
purchase

will

conversion

Bankers

(4/12)

March 4 filed 300,000 shares of common

—To

sold for the company's account,
175,000 shares for selling stockholders, and 168,000 shares
shares

March 14

Jan. 29

Securities Corp. (jointly).

Cincinnati Gas & Electric Co.
March 2 it was reported that

Coffee

proprietary products for the semi-conductor electronics
industry, and for general corporate purposes. Office—
Saxe,

and Stone & Webster

Aug. 31

if Alterman-Big Apple, Inc.

60,000

&

Inc., Kidder, Peabody & Co.,
White, Weld & Co. (jointly); First Boston
Corp.,
Co., Merrill Lynch, Pierce, Fenner & Smith Inc.

and

Biair &

Lehman Brothers of New York City.

March

Westfield

July about $10,000,-

000 of first mortgage bonds will be
filed. Underwriter—
To be determined by
competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.

+

registration of 403,000 shares of common stock, of which

Y.

Calif.

13,

Central Illinois Electric & Gas Co.
Feb. 3 it was reported that around

★ City Gas Co.

Inc.

(letter of notification) 75,000 shares of common
(par 10 cents). Price—$4 per share. Proceeds—
To discharge indebtedness, for development of additional

912

Los Angeles

Eastman

stock

sell

ders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co.;
White, Weld & Co. Bids—Expected to be received up to
9 a.m.
(PST) on Tuesday, May 10, in the offices of
O'Melveny & Myers, Room 900, 433 South Spring Street,

Weld & Co.

Feb. 26

N.

pected to amount to about $10,000,000 at the time of fi¬
nancing, the balance of the proceeds will be applied to
the company's construction
program.
Underwriter—To
be determined
by competitive bidding. Probable bid¬

fenner & Smith Inc.

Underwriter—None.

March

•

18

Proceeds—For working capital.

acceptance of the otfer.

Address—Latrobe, Pa.

the

on

Consolidated

Industries, Inc. (3/22)
$6,000,000 of convertible subordinated
debentures, due March, 1975. Price—To be supplied by
amendment.
Proceeds—For working capital.
Office—1
Bush St., San Francisco, Calif.
Underwriter—Blyth &
Co., Inc., San Francisco and New York.
Feb.

^ Vanadium-Alloys Steel Co.
March 2 (letter of notification) 1,196 shares of capital
stock (par $5) to be offered only to employees. Price
At a price equivalent to the last sale price on the

com¬

Price—At par

41

was

of

the

(11/3)

announced that the

company

plans regis¬

$12,000,000
SEC.

of 30-year first mortgage bonds
Underwriter
To
be
determined
by
—

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley &
Co.; Equitable Securities
Corp., and Eastman Dillon, Union Securities & Co.
Continued

on

page

42

42

(121,0)

The Commercial and Financial Chronicle

Continued from page 41

if Majestic Specialties, Inc.
March 10 it

(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
uled for Sept. 26.
Bids—Expected to be received on
Nov. 3.

Information Meeting—Scheduled for

Oct. 31.

Stone &

Gulf

'

'

Dec. 9 it

••V
<

it

'i

{•

(7/7)

announced

was

financing of

new

March
that

March

with

sell
,

it

was

reported

that

this

&

Van

Winkle

tration

>

I1 i

■

-'J

,T

Gulf Power Co.

'1 '''4

/Vt

Dec. 9 it
tration

•fjl:

of

preferred

stock

March

$100).

Union

Securities

&

Salomon Bros. &
Securities Corp.; Kidder,

Hutzler

ii'f

(jointly). In¬
formation Meeting—Scheduled for
July 5, 1960. Bids—
Expected
to be received on
July 7.
Registration —

,")*

'h,

J

Hamilton

•

Feb. 3 it

jrr

reported that
stock

common

reported

was

late

undetermined amount of
expected to be registered

s

•

M

1

•'

M

12

it

was

bentures

is

that

year

this

firm—the

old

Nov.

issue of convertible

an

being discussed

March 16 it

ing

Vr!

and

may

occur

in

the

de¬

for

next

Houston

At!

Feb.

|jr

f-n jf
.

•

sell

i./i ilr

8

reported

that

.iV

be
of

radio

common

Co.

this

;

•

—

Radio

Office—130

ji.w

In New

Ih
i.,!

March

ii

to

it

register

broadcasting.

•
!-Hv

sale

that

Feb.

planning

18

it

Probable

reported that
offer $10,000,000

I'd

on

of

be determined

bidders:

construction.

bonds

at

81

i.'li

•

Kenrich

Jan.

20

it

was

reported

that

Feb.

&

$175,000 of convertible debentures

of

common

To

stock

about the week

of

be

and

expected

55,000 shares

March 28. Price

supplied by amendment. Proceeds—For the
pansion of,
manufacturing facilities.

■%

Office—Maspeth,

—

Mac Panel
15

mon

stock

it

Millis

Co.

that

common

for

four

shares

of

Mac

Panel

common.

Office—High Point, N. C. Underwriter—Bache
& Co..
New York City and
Charlotte, N. C.

<1




jjjfWp-WMU Wfl

t"4

L~

'

that

the

railroad

plans

or

18

it

Electric

was

Power

"

+

the

24

it

.

-

,

notes,

Gas

total

March 11 it

was

made

South

this

Electric

1959.

.

placed privately.
this

newspaper

will

program.

Co.

issues

have

of

this

>

reported that the bank is
offering share¬
purchase 139,988 additional common

to

share.

Proceeds —For

expansion.

Office

—

Underwriters—William R. Staats & Co.
Angeles, Calif, (managing the
books), and Blyth
Co, of New York City
(jointly).

Virginia Electric
5

first

mortgage

it

was

& Power Co.

reported
bonds

To

—

be

that

will

;(9/13)

approximately

be

offered

for

$25,000,000

sale.

Under¬

determined

Bids—Expected

Wisconsin
Feb.

9

it

was

to

Electric
reported

$25,000,000 in

new

be

received

Power
that

on

Sept. 13.

Co.

this

company

is

planning

financing, probably in

the form

bonds, for sometime on 1960. Underwriter—To be de¬
termined
by Competitive bidding. Probable
bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce, Fen¬
ner
& Smith and
Equitable Securities Corp.
(jointly);
Glore, Forgan & Co. and Eastman

Dillon, Union Secu¬
rities & Co. and Harriman
Ripley & Co. (jointly); First
Corp.; Lehman Brothers and Salomon Bros. &
Hutzler (jointly).

Co.

Boston

cur¬

•

been

Note—On Dec. 31 Mr. McMeekin told
he does not know whether the bonds

placed privately. He expects them to be sold
this summer; the precise
timing will be subject to mar¬
conditions.

per

Corp.

—

Previous

end

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon
Bros. &
Hutzler; White, Weld & Co.; Eastman
Dillon,
Union Securities &
Co.; Stone & Webster Securities

•

be

ket

was

rights

writers

a

Proceeds—To repay bank loans incurred for

construction

the

be

on

of

Gas

to

about

Feb.

22, S. C. McMeekin, President, announced plans
sell approximately
$8,000,000 of bonds In December,

rent

of

Valley National Bank

$43

&

June
to

expected

toward

Weld & Co.; Stone & Webster Securities
Corp. (jointly);
Salomon Bros. &
Hutzler; Kidder, Peabody & Co.; East¬
man
Dillon, Union Securities & Co. and Smith
Barney
& Co.
(jointly); Lehman Bros.; Bear, Stearns &

about

&

1

that

some
financing by this
$25 million of bonds and common
stock.
Underwriter—To be determined
by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.;
Blyth & Co. and First Boston Corp.

r

Co.

summer.

Carolina

reported

of Los

Co.

reported that

was

is

Office

this year.

Phoenix, Ariz.

undeter¬

&

meet construction
expenses.

Blvd., St. Louis, Mo. Offering—Expected

the basis of one new share for
each 15 shares
held of record March
11; rights expire April 8. Price—

secondary offering might
Underwriters
Merrill Lynch,
Pierce, Fenner & Smith Inc. and Harriman Ripley & Co.
Inc.; both of New York City.
be

there

shares

$85,000,000, sometime this year. Underwriter—Merrill
Lynch, Pierce, Fenner & Smith Inc.
&

year

holders

about

.

an

in

Power & Light Co.
it

March 15 it

construc¬

reported that this company is planning
undetermined type of financing of
approximately

Schlitz

12th

•

to

by Dudley Sanford, Execu¬
the company plans an offering
the range of
$30,000,000 to $35,-

Co.

was

if (Jos.)

securities

3

•

to

The notes will be
1960-61

*

announced

(jointly); White,

Co.

&

debt

company

Proceeds—To

reported that there will be

Public Service Electric

■

approximately

in the second quarter of the
year.

Vice-President, that

Utah

-

that the company

part of the issuer's

it was

in the latter part of

the

J

"

Read & Co., New York City.

000,000. Proceeds—To

*

prior to July 31, 1961.

finance

16

—315 No.

.

.

Light Co.

be

to

reported that this company plans the sale
securities in the amount of

Feb.

Brothers and Eastman-DillonUnion Securities
and Stone & Webster Securities
Corp. (jointly).

was

reported that the 200,000 shares of com¬
were expected
to be filed the week of
Feb. 8, have been
indefinitely postponed. Note—It was
reported that shareholders of
Adams-Millis Corp. and
its partially-owned
subsidiary Mac Panel, will vote on
March 23> on a plan to
exchange three shares of Adams-

1

of

—

ex¬

Queens, L. I., N. Y. Underwriter
First Philadelphia
Corp., 40 Exchange Place, New York
City.
Feb.

tive

financing by this utility sometime
in 1960. Underwriter—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.; First
Boston Corp.; Dillon, Read & Co. and
Johnston, Lemon
& Co.
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner' & Smith (jointly); Lehman

an

of

on

expected

was

senior

March

plans to issue
$20,000,000 of securities, the date and form of

to

offering,

Underwriter—Dillon,

mined amount of debt

Feb.

is

&

was announced

Potomac

by competitive bidding.

registration

Power

that, pursuant to August, 1959, au¬
Congress to have $750,000,000 of revoutstanding at any one time, it plans its first

$30,000,000, sometime

-

expenditures, which are expected
$61,000,000.. Office—Portland, Ore.

May 24 this utility is
first mortgage bonds.

Petrochemicals, Inc.

; of

(4/5)

reported

(7/1)

Texas Eastern Transmission
Co.

pre¬

before

its

of

announced

bonds

enue

March 2 it

by

tion

Stone

|!M

summer

promissory

and

liiil

was

20

public

the first step

$25,000,000 of additional capital
Office—Aurora, 111.

it

in this company's prospectus

about $50,000,000, for
July 1, 1960. Probable bidders: First Boston
Corp. (man¬
aging), Salomon Bros. & Hutzler; Eastman
Dillon, Union
Securities & Co., and Lazard
Freres & Co. Power Fi¬
nancing Officer: G. O. Wessenauer.

$6,495,000

least

issued

(managing the books), Salomon Bros. &
Hutzler,
Merrill Lynch,
Pierce, Fenner & Smith (jointly);
& Webster Securities
Corp.; W. C. Langley &
Co.; F. S. Moseley & Co.; Reynolds &
Co.; Shearson,
Hammill & Co.; Dean Witter &
Co.; First Boston Corp.;
Wood, Struthers & Co.; Bioren & Co.; DeHaven
&
Townsend, Crouter & Bodine; Greene, Ellis &
Anderson,
and Steele & Co.
(jointly). Bids—Expected to be received on May 24 up to 11:00
a.m.
(New York Time).

:

$120,-

The sale of the 5.50%

which will be announced at a later date.
retire
$20,000,000 of unsecured

Office—

Securities

Jan.

5.

Jan. 29 it

(5/24)

Eastipan Dillon, Union

Co.

16

mature

was

to

Underwriter—To

|

1960

that

'

thorization from

of equipment trust certificates on
Probable bidders: Halsey, Stuart & Co.
Inc.;
and Salomon Bros. & Hutzler.

Rapids, Iowa.

II'
I'fe

last

was

was stated

if Union Electric Co.
stated

-

,

a

report

York.'Registration—Im-

"

Tennessee Valley
Authority

1960.

of

April

supplement money to be ob¬

Jersey Central Power & Light Co.

I ill

about

Pacific

President Sutherland Dows stated

000,000 required to finance

:;5L

sold

group

of

March

temporary bank loans, to acquire the $10,-

Cedar

stock

if Northern Pacific RR.

reported that the company is
planning
75,000 shares of common stock. Proceeds—

if Iowa Electric Light & Power Co.
11

contem¬

capital will be needed to meet its five-

new

construction program.

Inc

end

was

would be sold in order to
tained from

.'

Northern Illinois Gas Co.
16 the company's annual

Feb.

need

general corporate purposes. Underwriter—Lee
Higginson Corp., New York. Registration—Imminent.
«■"
March

is

company

a Halsey, Stuart &
in raising the money.
While no definite plans have
yet been made as to the
type of issue or timing of the next financing, it'.will

Inc.

16

the

New

.

amount of this
financing has not been determined
but the company
presently believes it will take the form
of senior securities.

(jointly); Equitable Securities Corp.; First Boston
Corp.;
Merrill Lynch, Pierce, Fenner & Smith
Inc.; Eastman
Dillon, Union Securities & Co. and White, Weld & Co.
(jointly). Bids—Expected to be received on July 19. '

Co.

For

0

!:J

of

ferred

Shepard St., Lansing, Mich. Underwriter—
York, to be named.

if Ionics,

that

Co.

offering, that it contemplates some addi¬
permanent financing in 1960.
The exact nature

and

April 12.

registration of 17,000 shares of
66% of the issue will be sold

About

financing

recent

tional

Jersey Power & Light Company (7/19)
1
it was reported that'this
utility is planning the
$5,000,000 of first mortgage bonds, due in 1990.

17

year

stock

stations. Business

reported

placing in

new

A.

was

'

■

Feb. 2 it
most

Underwriter—To be determined by
competitive bidding.
Probable bidders:
Halsey* Stuart & Co. Inc.; Kuhn, Loeb
& Co., Lehman Brothers and
Salomon Bros. & Hutzler

plans to issue and
(par 10 cents). Price
supplied by amendment. Proceeds—For
acqui¬

100,000 shares of

—To
sition

■

New

sale

Co., New

Independent Radio, Inc., Lansing, Mich.
Aug. 31 it was announced
company

t'.li.

M

Lighting & Power
was

was

stock.

000,000 of

: =«:!?

f

it

(

Stores, Inc.

company's account and the
will be sold for the account of

Feb.

(jointly).

[' j '
8

&

on

—

Tampa Electric Company

remaining 34% bal¬
selling stockholder.
Underwriter—Van Alstvne, Noel & Co., New York.

company expects to
raise about $35,000,000 from the sale of an
undetermined
type of security sometime in 1960.
Probable groups:
Blyth & Co. and Lazard Freres & Co. and First
Boston
Corp. (jointly); Lehman Brothers and Eastman
Dillon,
Union Securities & Co. and Salomon
Brothers & Hutzler

Mill V
fl

18

mirient.

.

the

ance

reported that this company is consider¬

financing. Underwriter—Burnham

some

it

the

common

•

York.

.' ■i t
.

was

12

plating

Electric

it

16

Corp.,

Telegraph Co.

Bids—To be received

To

.

&

Stanley & Co.,

City.

—

reported that the company is
planning
(
to register 150,000 shares of common
stock. Proceeds-?—
; To construct a new plant in Bristol, Conn. Underwriter
i —Lee Higginson

was

Nedick's

if Henderson Portion Pack, Inc.

:-

it

all of New York

Office—Birmingham, Ala. Possible Under¬
writer—Sterne, Agee & Leach, Birmingham, Ala.

ijr'-t

March

reported that $40,000,000 of debentures
will be offered. Underwriters
To be determined
by
competitive bidding. Probable bidders:
Halsey, Stuart
Co. Inc.; First Boston
Corp; and Morgan

few months.

f'

8

*

year, of an undeter¬
C. Allyn &
Co., and
both of New York City.

Underwriters

Snow, Sweeney & Co.,

(4/12)
Feb.

type.

^Superior

Broadway,New York
Co., Inc., 39 Broad¬

Dowd

Underwriter

was reported that
$11,000,000 in
is planned for the late Spring of this

,

—-

last

reported that

.r

*

public offering

198

SEC

(6/2),

that this company plans
regis¬
of $40,000,000
of 30-year Erst

Southern Union Gas Co.

announced

—

Generating Co.

Feb. 5 it

,

mined

Mountain States Telephone &

Hayes Aircraft Corp.

Feb.

its

the

bonds.

not

*

announced

with

conditions, and its' form is

•

Electric

was

mortgage

Pro¬

program

New York City.

way,

—

A i

expansion
outstanding bank loans. "• *

expansion. Office
City. Underwriter—R. F.

Harvey Machine Co.
is
planning its initial public
financing for the Spring.
Underwriters—Kuhn, Loeb &
Co. (managing) and
Tucker, Anthony & R. L. Day, both
of New York City.

8

company's

—For

Harvey Aluminum Co., Torrance, Calif.

■

was

first

on or about
May 17. Office—Denver, Colo. Underwriter
—Kidder, Peabody & Co., New York City.

It

repay

the

that the company expects to
in a few weeks.
The
offering will consist of 76..000 common shares. Proceeds

an

is

to

March 16 it

Management Corp.

was

non-voting

for

register

Scheduled for June 3.
•

parent, American Natural Gas Co.

pay

market

upon

•

if Mohawk Insurance Co.

,

1

also

and

(jointly); Equitable
Peabody & Co., and White, Weld & Co.

.i'Y

its

ceeds—To

and

report

•

was

to

common

Ripley & Co.; Eastman Dil¬

Co.,

it

8

to

& Co.

announced that the
company is pre¬
paring to sell publicly this year $20,000,000 of first
mortgage bonds and to sell an additional $4,000,000 of

regis¬

(par

Underwriter—To be determined by competitive
bidding.

lon,

j

shares

Probable bidders: Harriman

1

'

50,000

company's annual

competitive

if Milwaukee Gas Light Co.

i

that the company plans

announced

was

of

(7/7)

the

$3,9,000,000 issue of series L mortgage
underwriters in January, I960,, additional

be determined
by
bidding. Probable bidders:.- Halsey, Stuart
Inc.; Merrill Lynch, Pierce, Fenner & Smith
Inc.,
and Blyth &
Co., Inc. (jointly); Morgan Stanley &
Co.;
; White, Weld & Co. and Kidder, Peabody & Co.
(jointly);
Eastman Dillon, Union Securities &
Co.; Equitable Securities Corp., and
Drexel & Co.
(jointly); The First
Boston Corp. Information
Meeting—Scheduled for May
31, 1960. Bids—Expected to be received on June
2.
Registration—Scheduled for April 29.

Co.

March 9 it was reported that this
Salomon Bros. & Hutzler, and Drexel & Co.
company contemplates
a filing
of 75,000 common shares via a "Regulation A"
(jointly); Eastman Dillon, Union Securities & Co, In^
with the SEC.
formation Meeting—Scheduled for July
Proceeds—For general corporate pur¬
5, 1960. Bids—
poses.
Expected to be received on July 7.
Registration —
Office—Paterson, N, J. Underwriter—Whitmore,
Scheduled for June 3.
Bruce & Co., New York and
Washington, D. C.

i

i',
v

in

the

Southern
Dec. 9 it

Smith Inc.;

-a

stated

was

known at this time.

to

some¬

'

MUller

it

dependent

plans

company

approximately $30,000,000 of pipeline bonds

time in May. Underwriter—To be
determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc. and Blyth & Co.

Inc.; The First Boston Corp.; Equitable Securities Corp.;
Kidder, Peabody & Co., and White, Weld & Co. (joint¬
ly); Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner &

Thursday, March 17, 1960

.

funds will be needed to complete its estimated
$120,000,000 construction program for 1960.
.This financing is

Co.

11

15

besides

bonds sold

if Michigan Wisconsin Pipeline Co.

that the

bonds.

year

'

Co.

company plans regis¬
the SEC of $5,000,000 first mortgage 30Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co.
tration

»

-

Power

.

if Southern California Edison Co.

reported that there is

type and amount, being discussed by
this company, which will
probably occur sometime in
April. Office—Cleveland,, Ohio. Underwriter —
Hayden,

^

/ t

was

undetermined

an

.

■

*

Wisconsin Telephone Co.

March

2

it

'

sale
■

of

was

reported

that

(5/10)
this

company

plans

the

$20,000,000 of debentures. Underwriter—To be
by competitive bidding. Probable bidders:

determined
•

Halsey, Stuart & Co. Inc.; First Boston
Corp.; Morgan
Stanley & Co. Bids—Expected to be received on
May 10.

191

Volume

Number 5934

.

.

.

The Commercial and Financial Chronicle

,

(1211)

43
A''

Dort

The Security I Like Best...

age

>nal

of

ment
000

products, and $60,for plant expan¬

new

for

machine

Continued from page 2

is

■

not

4

has

shifted

now;

United States.

outside

of

against

the

machines

Since Seismograph

•

irst

Even

after 1958, revenues have

continued

to

trend

upward at a
rather respectable annual rate.
Xne problem
is tne failure of

Jay
2.

development

the

find

It

exact

is

t

spot

radio postioning device

a

installation at the
at

ther

wholesale

Missile

Navy and

because

Air Force interest

the

of

device's

potential
in locating ships and missiles. But

to

logging

.

wanted

bigger,-

fancier

of oil wells.

equipment,
capable
of
more
complete answers

giving
in .less

graph

Seismograph takes the posi¬
they don't know what
the life of this equipment is going to be. They are assuming a
very short life span.

doing

that

year.
,

Incorpo¬

Birdwell

1958, that subsidiary

have

to

had

revenues

million, and for 1960,

nue<?

was

about ; $1.5
million
per
Last year, Birdwell is be¬

lieved

$2.0

At the time Seismo¬

bought

rated in

time.
tion

expected to go over $3.0

are

that

Seismograph's reported de¬ small company, are able to offer
preciation is overstated.
It fol¬ "continuous
velocity
logs."
So,
lows

that reported
earnings are
substantially understated and that

only these companies can offer a
complete logging service.
Seis¬

book

value,

have

pushed

mograph will manufacture log¬
ging units itself and it is felt that

by

the

end

$23

over

of

1959,

''hard"

figure.

enough

residual

expect

we

per

is

There
value

to

share

a

left

the

very

of the

growth

Birdwell sub¬

be, sidiary depends solely

may

(March 17)

are

of

000

6%

debentures

nated

and

1960

convertible

100%

due

plus

dated

March

accrued

fast units

even

can

upon

how

be built and put into

in
the
relatively
short - lived the field.
equipment
that
the ' company
Seismograph Service will un¬
handles to boost book value hand-"
doubtedly come up with other ap¬
somely.
,
' . .
plications for its electronic know-

debentures

The
and

are

subordinated

are

indebtedness

other

tion

porate

from

An

and

com¬

from

and are to mature, unless
previously redeemed or converted,
on
March 1,»J975.;
1960,

in

1

each

of

its

consolidated

There is

could

a

-said

be

more

thaf

value;

for

good deal
about

how.

But

the first fruits

even

efforts

its

in

these

cor¬

to

87,186

shares

of

B

common

Corp., a sub¬
exchange
for
their
as

Inc. in

1959.

subsidi¬
principally of the
manufacturing of men's, women's
aries

consists

shoes and the

children's

shoes

through

retail

both wholesale
Subsidiaries

outlets.

to

sale

in

Hoving

Corp., which
operates women's specialty stores
and
also
Tiffany and Co., are

net

Co.

manufactures

which

129,959

608,734 shares
of $1 par.

LIMITED
March

prices not in excess of the
redemption price, plus in¬

of

of

common

of funded

of

preferred

value and 3,stock

common

|The report of Genesco Inc. and
consolidated
fiscal

subsidiaries

ended

year

for

Oct,

31,

the

1959

shows net sales of $272,717,000 and

earnings

applicable

to

common

stock of
per

$8,020,000, equal to $2.66
share, compared with $238,-

636,000 and $5,993,000

or

$1.99 per

share in the 1958 fiscal year. Sales
and net income for the quarter

ending Jan. 31, 1960 were
proximately $74,350,000 and
078,000
and

as

income

net

and

ap¬

$2Xcompared with the sales
for

the

quarter

1959 of $68,411,000

$2,034,000,

respectively.

The

paid dividends amount¬

company

ing to $1.50
three

share in the last

per

fiscal

years.

NOTICES

Ur>i<ed
united shoe machinery

corporation:
'19th Comecutivi

The
clared
cents

DIVIDEND
a

NO.

7,

1960

(lV/zC)

Seventeen

and

Cents

share (in Canadian Funds)
was
declared
payable on April 29,
I960, to share¬
holders of record at the close of business
on
March

per

30,

share on the Pre¬
They have also

pei

dividend of 62

declared

a

cents

per
dividend

share, and

share,

the Common stock.

of

on

25

dividends

per

both Pre¬

on

May

payable

April 4.

special

a

cents

stock

Common

and

stockholders

to

170

One-Half

37

of

ferred stock

I960

2,

record

of

I960.

Frederick A.

meeting of the Board of Directors of
Limited, held this day, a quarterly

Dome Mines,
dividend
of

de¬

have

dividend

a

Jivldend

Quarter."

Directors

ferred

NOTICES

MINES

DOME

chase debentures in the open mar¬

shares

stock of $100 stated

The

DIVIDEND

At

terest

stock shows $30,708,000

debt,

as

adjusted for

as

the sale of the additional

are

applied by the Trustee to pur¬

ket at

31, 1959 and

The

of the company and cer¬

chase fund from time to time shall

then

Capitalization of Genesco
Dec.

the Jar-

earnings

be

clothing.

tain of its wholly owned

and

Tailoring Co.,
Inc.,
manu¬

Kent,

facturers and distributors of men's

Co., the name was later
to General Shoe Corp.,

addition

(as defined in the In¬
denture) for its next preceding
fiscal year. Money in the pur¬

American

Roger

v

ended Jan. 31,

class

Genesco

business

and

year

and

DIVIDEND

changed
and

English

Shoe

Stevens
Treasurer

March 9, 1960

1960.
CLIFFORD

usual and customary
brokerage commissions. Any
plus

Chairman

W. MICHEL,
and Treasurer.

.

iliiiiii;
■

':

;

'

DIVIDEND

NOTICES

CONSOLIDATED

of

NATURAL

fields

new

general

Hoving

in

1962,. the company
deposit with the • Trusted'1 as' Fbrmfit
Purchase Fund an amount equal
7 Vz %

the

and sells women's foundation
gar¬
ments
and
L.
Greif
&
Bro.,

are

and

of

sidiary,

of

commencing

to

of

shares.

,

.

stock

will
a

connec¬

affiliated

an

Incorporated in 1925

1960,

February

of
for

additional

shares

man

payable Sept. 1
March 1 commencing Sept. 1,

On

in

purposes.

common

of

1,

sale

being offered
by Genesco to present holders of

rate

March

stocks

common

money

annum

tne

acquisition

and

per

Genesco to retire

incurred

the

company

They

per

with

capital

constitute superior debt.
are to bear interest at the
6%

priced at $33.50

The proceeds from

indebtedness

to

pany

stock

will be used by

unsecured,
superior

for

plus

snare.

to

designated by the

time

any

March

common

debt, which is defined to include
the company's bank loans and any
borrowed

redeemable

are

part at

& Co., Inc. heads an un¬
derwriting group which is offer¬
ing for public sale today (March
17) 500,000 shares of Genesco Inc.

at

interest

in

or

Blyth

1,

1975,

one

such

Blyth & Co. Heads
Genesco Offering

of¬

March

each

accrued interest prior
1, 1961, and at decreas¬
ing prices thereafter.

subordi¬

1,

debentures

whole

106%

to

fering the following securities of
One-Hour Valet Inc: (1) $2,000,-

of

reve^

; Judging from the way compara- - million. Only Birdwell, Schlumble companies write down trucks,, berger, Ltd., the kingpin of the
and other equipment, we believe
logging business, and one other

which

servo

Alstyne, Noel & Co. and As¬

sociates today

of

at

maintains

Van

date

(in amounts of at least $200,000)
the option of the company, at

manu¬

components and related

It

Station

Cape Canaveral. There is fur¬

magnetic scanning devices which at this stage,5'Lorac remains po¬
cost a good deal more.
The com-; tential. It is impossible to say just
how big it may become.
pany also built and put into oper¬
ation
its
own
playback centers.
* Then, there is electric
Clients

and

in

Lorac, which is capable of
March 1, 1960 to date of delivery,
determining locations, absolutely.
and (2) 100,000 shares of common
by American Tel¬
stock (par $1) at a price of $10,625
ephone & Telegraph to help lay
cables. There has also been one per share.

off foreign-employed vehicles.

conventional

of

It has been used

which the company takes to write

from

con¬

So, Seismograph

means.

they wear out rapidly; but may¬
be not as rapidly as the two years

switchover

a

called

probably the largest single item
in the depreciation schedule and

a

es¬

which

in

accurately enough by

invented

thing as it does in
other situations. Trucks are

was

pro¬

."shot" has been set off.
impossible to mark water

ventional

same

there

a

seismic

Depreciation
in
the
case
of
does
not
Seismograph ■ Service

1958

seem

But it has been

biggest problems in
exploration has been to

offshore

areas;

In

The

25,: 1959 for the purposes
engaging in the business of the
of; electro-magnetic

machines

on

March

design,

One of the

and steadily.

many

law

Securities Offered

rhpid increase in depreciation and
cash flow has moved up rapidly

the

that

State

expended within
the

deposit, respectively, shall revert
to the company free of
purchase
fund requirements.

organized

was

York

One-HourValetlnc.

reported; earnings to grow pro¬
portionately. But even that prob¬
lem is more apparent than real,
for earnings have been hurt by the

mean

believed

is

company

New

products.
principal offices at
timated that there is a domestic 136 Church St., New York City.
sales potential of about $25 million The
company also maintains man¬
per* year. If Seismograph were to
ufacturing and engineering facili¬
get only 20% of that figure, vol¬ ties at 1742 South Crenshaw Blvd.,
ume
.would be lifted more than Torrance, Calif.
25%. And a 5%
carry down to
after tax net might boost earnings
by 60c per share. Voting machines
probably will not be much of a
factor in
Seismograph's over-all
operations until 1961.

with the sterling or
received from the English
French subsidiaries, they see
no
reason to penalize themselves
for the shift, that has taken place
in their business.

!CU-

it

The
under

facture

Voting

and

nc.,

and

saic business.

francs

Co.;
iy);

$1,500
contemporary

machines.

problems

by
art

about

for

delivery to polling places
is substantially less than for older

portions of the Eastern Hemisphere
and/ has
never
had conversion

mst

cost

of

cost

paid in dollars for its efforts in
the Western Hemisphere and in
is

gis-

will

$1,700

from

year

sion.

00,-

not

moneys

reserve

example, the fact that Seismo-" promise new peaks for revenues
graph was hit with a $200,000. and earnings. •'*
•
Venezuelan loss in the first quar¬
If new products, plus Birdwell
ter of 1959. If that non-recurring
Incorporated were enormously
item had not existed, Seismograph
successful,
Seismograph
would
might have reported 1959 earnings
probably need money.
However,
equal to $1.80 per share. But now, the
company is financially sound
let's talk about glamour.
and has large enough cash flow
I For many years, Seismograph
to
allow
substantial
borrowing.
has built complex instruments for

GAS

COMPANY

,

its

own

engineers,

in

electronic

techniques

developed

some new ones

Until

own.

oil

industry

company

is

was

of their

this
The

seeking

about

25%

of

.

Common

Stock:

388,000

nary work

the

ordi¬

helmet, but it enables
to

wearer

over

an

talk to his fellowsr

extreme noise and

up to three miles.

at ranges

Chemical

-

has

per

been

hat, and Dow
the
largest

buyer to date—with 350. Inquiries
regarding the hat have become
numerous
and
Seismograph has
embarked upon an ambitious sales
program. If current promotional
efforts
be

a

are

successful, the hat may
1960 earnings.

contributor to

Seismograph, has

invented

an

jelectronic

voting machine, which
weighs only 100 lbs. compared to

•about

900

mechanical

•«

lbs.

for -conventional

machines.

Digitized1for FRASER


the

Edison

Company,

payable May 16, 1960 to stock¬
holders of record at the close of
April 15, 1960.

John Miller, Secretary

April 8, 1960.

at

To

$10.31

16,

1960

Vice-President and Treasurer

The Board of Directors has

authorized the payment

of

following quarterly divi¬
dends:
,

COMMON STOCK
201

No.

65 cents per share;

36,438
each; and 13,562

PREFERENCE STOCK,

PACIFIC

J.A.WinstonHeads

Company

dividends

the

March

purchase

$11.94.

California

POWER

& LIGHT COMPANY

4.48% CONVERTIBLE SERIES
Dividend No. 52
28 cents per share;

PREFERENCE STOCK,

4.56% CONVERTIBLE SERIES
Dividend No. 48

Vernitron Deal

28Va cents

per

share.

These helmets

could be invaluable for almost any
kind of heavy industrial work.

They sell at $250

Southern

Dividend

Options:
at

as

Fifty-Five

share on the

per

stock of

capital

Otto W. Strauss
,

(55?)

($1 par).
shares

worn

Cents

shares

Seismograph
is
producing
a
radio hat; parts of which are pat¬
is

day declared a regular

this

business

ness

Long Term Debt: $1,856,375, in¬
cluding $1,500,000 5.7% notes.

ity.

This

has

quarterly dividend of

of record at the close of busi¬

Capitalization

channels for its electronic capabil¬

ented.

Dividend No. 226
Quarterly Dividend of Twen¬
ty-Eight Cents (280) per share
on all the outstanding stock of
Combustion Engineering, Inc.
has
been
declared,
payable

stock, and is probably not in¬

equity.

new

-

The board of directors

A

terested in needless dilution of its

devoted-

application.

now

owns

Plaza

20, N. Y.

Dividend No. 49

even

recently,

very

electronic know-how
to

and

the

York

April 22, 1960, to stockholders

Management

Its.

use..

their efforts to keep their equip-,
merit up
to date, have become
familiar with
the
very
latest

Rockefeller

30

New

The

new

J. A. Winston &

lands

Securities

K. Osborne &
9
of

Co., Inc., Nether¬

Co.,

Inc.

and

the

public

offering

100,000 shares of common stock

(par 10 cents) at $3 per share, as
a

speculation.
Of the net

be used for

$20,000

proceeds, $30,000 will
purchase of machinery,

for

purchase

of

Dividend Notice

V.

Sons, Inc., on March

commenced

special

tooling and test equipment, $35,000 to be applied to current ex¬
$25,000 for purchase of in¬
$30,000 for design im¬
provement of present products,

penses,

ventory,

$35,000 for research and develop¬

The above dividends

able

Quarterly dividends of $1.25 per share on the 5%
preferred stock, $1.13 per share on the 4.52% serial
preferred stock, $1.54 per share on the 6.16% serial
preferred stock, $1.41 per share on the 5.64% serial
preferred stock, and 40 cents per share on the
common
stock of Pacific Power & Light Company
have been declared for payment April 11, 1960, to
stockholders

of

record

at

the

close

of

OREGON

March 9, 1960

pay¬

stock¬

April 5.
from
the Company's office in Los
Angeles, April 29.
Checks

will

be mailed

P. c. hale,

March 15,

H. W. Millay, Secretary
J*
J

are

to

of record

holders

business

March 31, 1960.
PORTLAND,

April 30, I960

I960

Treasurer

If

/;:
d
44

(1212)

The Commercial and Financial Chronicle

..

.

Thursday,/March 17, 1960

WASHINGTON AND YOU

out of

one

eight, in the United

States,

were

admitted to hospi¬

tals in

1958.

Some

pital beds

BEHIND-THE-SCENES INTERPRET A TIONS

beds

FROM THE NATION'S CAPITAL

•'

WASHINGTON,

D. C. — The
security insurance sys¬
now provides some
protec¬
tion against loss of income from
death, disability, and retirement

will

to

1

H'"
C)

\

ize social security programs.
If
follows
a
tradition
that it has maintained for the

*

'

>

■1,.

'

"v') '
S ■' "
,4.J

•

some

and

ment

■

systems
8%.

'•

Wtf

tional

t

tration

men,

•if,11 i

■

1

;

is

monthly

■i J i
'

■

.

-

if',f

'

'

'i1

,

public

cover

retire¬

Security Adminis¬

now

sending

benefits

out

to

a

children.

there

year ago

This

payments.

number

time

will

next

have

each

best

present

time

i

for

year

aid

'•i-

to

alleviate

or

■p:
'}}■
•tis-'
;'.:h

permanently

and

make

the

up

of the total of

totally

the

Social

istration

vivors,
will

I

'

'

I!''

Security
that

says

and

the

vast

during

the

next

July

fiscal

More

r>,L

to

-

sur¬

h

;

Oi1

1

Hii
h:n

,

A

•

for

older

series

of

taxes.

paying

$4,800

been
built
up
with the
social security tax contributions

of

Employes

3%

annual

employers

uninsured.
and

1958
65

hospital

pending in Congress to liberal-

are

in

the

of

tics

show

dVif

less

Limited Risk-Unlimited Profit
Stock

on

■|!;;

How with
to

the

Market
put

a

cost

hundred

of

Transactions

call option, risk limited
the option
(maybe a few

in

had

dollars),

you

make

can

profits
90

few

peering
*

With

unlimited

(possibly thousands of dollars in
<iays) is explained in this clear,
simple

book

in-

the

Department

the

future
of

now

say:

our

seems

for

reasonable

future

beneficiaries.
timated

Pitt and CAU

Thus, it is
three-fourths
population
will

es¬

that

aged

of
be

eligible far benefits in 1970, and
more^tham 80% by 1980.

.t-Ml

Mofe

Why

Options

Why

Federal

is

the

Department

•

Health, Education

•

by HERBERT FILER

and

for

the

20-year

end

of

of

Welfare

K
v'

#1

authority

The

options

This

how
on

book

shows

you too
minimum

bow

you

make

can

how

make

can

Committee

they do it and
maximum profits
It shows also

The

investment.

of

effect

The

that

aged is not

AMA

the

bad

near as

ports

to

show

90% of those

This

help
and

book

you

And

on

costs

make

you

a

you only
fortune.

coupon

$3.00.

It

Free.

Fill

once

ticularly

can

the

CROWN
419

Publishers,

Dept.

or

•

send

me

Herbert

Filer's

16, N. T.

They

Under¬

ate

If

examination.

have

convinced that it can
pay for itself
times over, I may return it
and pay
Otherwise I will pay you
$3.00
the postage charge within
10 days as
payment in full.

because

greater

and

others,

are

a

and

program for

fine, of
forded.

medical

it

can

one

more

706

were

com¬

insurance

actively

care

and

Rico),

60 Blue

(including Hawaii
Puerto
Rico), and more
400 independent plans.

37%

increase

in

the

over¬

of

V

to¬

insurance

gaged

in

companies

this

field

from 284 in 1953

The
care

Health

increased

to 459 in 1958.

Insurance

Banking,

Finance

&

of Pennsyl¬

"

(St. Louis, Mo.)

Municipal Dealers Group
Luncheon

at

Mis¬

Club, cocktail party
and banquet at Park Plaza
Hotel,
April 28; Field Day at Glen Echo
Country Club, April 29.
•
April 29, 1960 (New York City)

Security
New

Traders

York

Association

annual

dinner

at

the

May 9-10, 1960
Association5 of
Firms
ernors

(Atlanta, Ga.)

Stock
Exchange
meeting of Board of Gov¬
at Hotel Atlanta

Biltmore.

cost per patient

hospitals

will have

about

earlier.

the

In

Almost

May 20, 1960^(Baltimore,-Md.)
Baltimore. Security Traders Asso¬
ciation ' annual ispring

outing
Maryland Country Club.

Name.

aged

spent

many

days

Address,

hospitals
Gity.:

Zone

—

|~J Save postage. Check here If
enclose check
we

or

State
you prefer to

money order for

$3.00. Then

pay postage. Same moneyback guarantee.

Is




!

J
I

|

a

at

per

to

$28.17,
the

10

/

cost
,

22,000/100 persons,

■

Attention Brokers and Dealers:

or

TRADING MARKETS

for

r'

persons.

.

Botany Industries
Indian Head Mills
Official Films

Southeastern Pub. Serv.

is

•

.

enter

frequently,
durations

If

■

.

the

twice

■

*

Carl Marks

1.-

-

Our

&

more

those

FOREIGN

■

20 BROAD

STREET

•

NEW YORK 5, N. Y.

-

more

short
are

New

York

telephone number is

CAnal 6-3840

SECURITIES SPECIALISTS

TEL: HANOVER 2-0050

who

Co. Inc.

as

TELETYPE NY 1-971

health in¬

hospitals

but have

than

IT"*firv.

that

capita in general
population as

Persons who have
surance

National

the

as

whole.

least

LERNER
Investment

wf ";v

mL

10 Post Office
Yitii,.iWAr..inr,"rt" iri*»Y

.in

tj

\

(Minneapolis, Minn.)

nothing.

Figures from
the
Health Survey shows

at

Twin City Bond Club 39th annual
picnic and outing at White Bear
Yacht Club (preceded
by a cock¬
tail party June 15th at the Nicol¬
let Hotel.

average

probably will be higher.

Americans

Spring Party; cocktails
May 19 at Hillwood
Country Club;; outing May 20 at
Bellemeade Country; Club.:
dinner

aver¬

day at

1960

ciation

and

June 16,1960

per

amounted

double

May 19-20,1960 (Nashville,
Tenn.)
Nashville Security Traders Asso¬

likely to be slower.

many

plus

;

of

Waldorf Astoria.

of

recovery

of

Insti¬

tute says that in 1958 the
age

af¬

en-

than younger

their

!

Spring Party:

may require more elabor¬

types of

Investment

School

April 28-29, 1960

medical

younger

of

issuing

plans

number

life

bill,

Coverage Expanding
and

(Philadelphia

sociation annual Field
Day.

years

More

accompanying
These organ¬

insurance com¬
panies writing health insurance
was
chalked
up
from
1953
through 1958.
The number of

to pay for it.

Health

1960

May 17-18, 1960 (Omaha, Neb.)
Nebraska Investment Bankers As¬

all

than

.be

income

include insurance

Society - approved
independent plans.

than

the aged would be

course, if
But some

surgical

Medical

and

socialized medicine.

hospital

insurance

hospital,

disability.

A

step

Sheraton

cluding Puerto

pur¬

Forand

the

Commerce, University
vania.

older

need

other

than

persons

not

part

the

ward

old

health

developments

services

standing Put and Call Options for 10
days'
free

of
a

In

new

hospital

•

A-7,

Park Avenue South, New
York

Please

as

problem.

today.

bookseller,

illness
fore

these

in

persons
To your favorite

the

to

age,

It

medi¬

in

and in

eases

stocks, etc.

examine

can

mail this

your

of modern

among

that

the

of

Shield

afford

can

at

health insurance policies in
1958,
some
83 Blue Cross plans
(in¬

it has

more

65

health

medical expenses
resulting
illness or injury plus the

companies

the

study

that

over

with

There

been pictured.

Association's

10-15,

Wharton

111,435,000
are

meeting

Institute

ex¬

panies, Blue Cross-Blue Shield
plans, and a substantial number

declares

as

hospital

King

Pa.)

the

than

izations

plight of the

A

illuminating.

preventing epidemics
curing or controlling dis¬
usually fatal has
brought chronic
illness, par¬

options on your own
to increase income, where and
how
hi buy and sell puts and
calls, how to use
tnem
to make
capital gains instead of
short-term profits, how to use
options to
stock

protect profits

are

success

cine

sell

can

-

American Medical Asso¬

Committee.

had

loss

of

lot

at

total of 123,038,-

a

such

'

type of health u

a

April

Health

said

insurance and

against
from

1957.

fication,

Excerpts from a
report the Secretary presented
to the House
Ways and Means

(call and put)

options

the

souri Athletic

and

insur¬

in the future?

because they know
big profits for
them
and
also
can
protect
unrealized
"paper" profits on the stocks they own.
these

at

....

St. Louis

and

refutes

1958,

any

public

statements that have been made
to the House Ways and Means
in

than

1,200 insuring organ¬
izations providing the American

Position

ciation

annual

Dallas.

surgical expense insurance.
The Institute said there

to meet medical
bills of $500.
The Association says, with
justi¬

pointing to the need for medical
hospital care for the aged

the subject.

on

dinner

ers

with

\.

insurance.
AMA's

persons

more

Public Health

some

of

pense

:

.

and

the

Thousands of successful traders and
pro¬
fessionals
purchase
"buy"
and
"sell"

end

Health

by the

older have

have

Institute

000

pe¬

:

Service show that between 36%
and
39% of the aged 65 and

The

Outlays?

annual

hospital

persons

protection

Insurance

statis¬

hospitalization

Studies

to

today

of

Labor

that

the

at

ance
-

more

insurance

expense

to

National

of

fact

health

is

aged

eligible

Hotel

Texas Group of Investment Bank¬
Association of America 25th

matter

a

other kind of insurance.

of

.

form

had

only 20% had

representative

the

ilk

65

money

that beneficiaries

assume

Understanding

over

in

seven-tenths

are

tfl

of

into

population
benefits it

a
tim.

people

$1,000

year, and
than $2,000.

the

April 10-11-12,1960 (Dallas, Tex.)

coming under the coverage

of

and

persons—72% of the total population—were covered by some

pay¬

Officials

or

costs,

need

Survey J
report showed about 121,000,000

some

a

more

the

the

riod.

persons
a

all

than

come

1938

300%

rose

that

In 1956 and 1957

of

of

April 8, 1960 (Toronto, Canada)
Toronto Bond Traders Association

of health insurance. As

hospital care
1958, as measured
by the "consumer price index,"

first

that

five

older

of the stock!"

are

needs,

medical

until

care

show

from

earnings, and

every

and

ing job.

j'ijV-

fear

getting

Department

al¬

are

matching

records

one

years

60%

who

with

persons

medical

overwhelming.

'

<• t !•'

those

postpone

the

Older

serious

The

HEW

bills

100%

Ballroom

Biltmore.

Edward Hotel.

sum.

and

dollar for

% of the stock-

28th

by advocating a
increase" in social se¬

ready

Congress Hotel.

Grand
100 dollars for 1

'

Fleming of

for

1

persons,

curity

.have

a

Arthur

hospitalization

''small

security benefits are
out of two separate trust
funds maintained by the Treas¬
ury
Department. These funds

are

NOT

the Department of
Health, Edu¬
cation
and Welfare,
has come

Come

There

retired

more

1.

employees, employers,
the self employed.

hospital

America's

"No, No, Miss—it's

Secretary

year

by

would

needs.

care

of

April 8, 1960 (New York City)
New York Security Dealers Asso¬
ciation 34th annual dinner in the

and hospital care.
Of
older persons have
than
average
medical

larger

paid

%

Committee,
and

at

Ways

that has had visits to

one

course,

Special

[jG

House

medical

medical

in¬
pay

out

"

the

hospitals in recent years
dispute the rising costs of

can

Admin¬

disability benefits,
14,600,000
people

cover

starting

!,fe;

No

13,750,000 monthly

Association

tics Association &
Chicago As¬
sociation of Commerce &
Industry
7th annual Mid-West Conference

meas¬

J.

Forand,
Rhode Island, and

to

Bankers

25-26, 1960 (Chicago, III.)
Chicago Chapter American Statis¬

workers.

remainder

system, which will
$11,700,000,000 in old age,

I

provide

Amie

of

Means

insurance

dis¬

recipients.
The

member

and

dependent children, aid
blind, and assistance to the

surance

i'. v

a

to

abled

t: ;

or

Rep.

(Chicago, 111.)
Group of Invest¬

States

Mar.

Democrat of

age

by

16-17, 1960

Central

being pushed
Capitol Hill these days is the

insurance

benefits.

ivith

America at the Drake Hotel.

monthly

to

March

pre¬

Bill

so-called Forand Bill. The

old

views,]

IN INVESTMENT FIELD

is

ment

Forand

ure

coincide

large

are

than 10,000,000 of the
16,000,000
people aged 65 and over are

Aid

to

research

receiving

:

I",

not
oivn

may

EVENTS

are

it.

on

more

or

millions

survivors

}.fiV

re'

COMING

his

One of the bills

the

may

Federal

of

some

ways

The

to

in

knowledge of the
dependency and of the

vent

14,100,000.
At

to

our

of

causes

year

risen

intended

Congress

Governments

He said there

in

gaps

were

Eisenhower

needy

needed.

12,500,000 recipients of monthly
the

is

it
in

hundreds

dollars

the

13,750,000

and

column

the "Chronicle's"

form.

or

State

spending
of

They are being paid approxi¬
mately $850,000,000 a month.

w;
}rY

years

program

the

message
to
that because the

said

addi¬

an

shape

President

and

women

About

;:r;0

other

The Social

.if

election

budget

1

I

',!»■ .>!
,

several

liberalize

85% of the nation's
labor force. The railroad retire¬

f

'

past

about

ment

r

'\

V

YiS

and

Congress

tem

V.t)

or 3.5

fleet the "behind the scene" inter¬
pretation from the nation's Capital

social

*

610,000 hos¬

available,

1,000 population.

per

[This

were

&
GO.
Securities

,„

,

Square, Boston 9* Mass.

f Telephone,,. •.
Hbbbar<Lg.l99<>-

I
.

;

V

:

Teletype
BS

69